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VEF AB
Quarterly Report • Jan 22, 2025
3123_10-k_2025-01-22_e0423329-379e-43e5-bbcf-d6db65175260.pdf
Quarterly Report
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The emerging market fintech investor
2024
Key events during the quarter
Macro headwinds outweighed portfolio company performance in 4Q24 as NAV decreased by 20% to USD 353.0 mln. The strengthening of the USD combined with weakness in Brazilian asset prices specifically had a direct negative effect on our NAV in the quarter.
Creditas released headline 3Q24 IFRS results. 3Q24 was the fifth consecutive quarter with growing loan origination (17% QoQ/49% YoY), combined with expanding gross margin reaching 45.9%. Quarterly revenues and gross profit hit records of USD c. 83 mln and USD c. 38 mln, respectively.
We announced our first exit of this cycle and our first in India with the IPO of BlackBuck. VEF partially exited its position, realizing gross proceeds of c. USD 2 mln. This partial exit enhances VEF's liquidity, aligning with our strategic objectives to strengthen our balance sheet. BlackBuck's share price closed up 72% from IPO to YE24, valuing our remaining holding at USD 5.2 mln.
VEF – Investor in one of the strongest secular growth trends across some of the world's fastest-growing markets
Net asset value per share (SEK)
Net asset value change 2024 (SEK)
Photo: Laurentiu Morariu (Unsplash.com)
Net asset value
- VEF's NAV as at YE24 is USD 353.0 mln (YE23 442.2). NAV per share decreased by 20% to USD 0.34 (YE23: 0.42) per share during FY24.
- In SEK, NAV equals 3,882 mln (YE23: 4,441). NAV per share decreased by 13% to SEK 3.73 (YE23: 4.26) per share during FY24.
- Cash position, including liquidity investments, was USD 12.8 mln (YE23: 21.6) at the end of 2024.
Financial result
- Net result for 4Q24 was USD -122.2 mln (4Q23: 19.4). Earnings per share were USD -0.12 (4Q23: 0.02).
- Net result for FY24 was USD -89.9 mln (FY23: 60.1). Earnings per share were USD -0.09 (FY23: 0.06).
| Dec 31, 2022 | Dec 31, 2023 | Dec 31, 2024 | |
|---|---|---|---|
| Net asset value (USD mln) | 381.8 | 442.2 | 353.0 |
| Net asset value (SEK mln) | 3,981 | 4,441 | 3,882 |
| Net asset value per share (USD) | 0.37 | 0.42 | 0.34 |
| Net asset value per share (SEK) | 3.82 | 4.26 | 3.73 |
| VEF AB (publ) share price (SEK) | 2.45 | 1.84 | 2.21 |
Events after the end of the period
VEF's Brazilian holding Gringo has entered into a definitive agreement to be acquired by Sem Parar Instituicao de Pagamento Ltda. As part of the transaction, all existing investors, including VEF, will fully exit their position in Gringo. The transaction is expected to result in net proceeds of USD 15.2 mln for VEF. The transaction is subject to customary closing conditions, including approval from the Brazilian antitrust authority, and is expected to close in the coming months.
Visit VEF's IR page for our financial reports and other information: vef.vc/investors
Management report
Dear fellow shareholder,
The final quarter of 2024 was one where continued micro level delivery at VEF came up against headwinds at a macro and market level.
Looking inwards, we end 2024 on a strong footing:
- Quality portfolio, profitable and returning to growth – With the majority of our portfolio reaching breakeven in early 2024, it then became a year to reignite growth. Focusing on our size holdings, in 2H24, growth returned at Creditas and Konfío, while Juspay continues to compound profitably, at a growth clip of north of 50%.
- Exits and balance sheet strengthening In 4Q24, we announced our first exit of this cycle with the IPO of BlackBuck in India, followed swiftly by the sale of Gringo in Brazil.
Countering this, we encountered some strong macro and market headwinds in 4Q24 and marked our NAV down accordingly. The strength of the USD combined with weakness in the Brazilian economy and related asset prices had a direct negative effect on our 4Q24 NAV evolution, off 26% QoQ in USD.
Strengthening our balance sheet and reducing our traded discount are strategic priorities we intend to carry over from 2024 into 2025. Our goal is to lower our traded discount to NAV and get back on the front foot investing. We go deeper on some of these topics below.
4Q24 NAV – Brazil macro and market weakness drives NAV lower QoQ
We end 4Q24 with a NAV per share of SEK 3.73, -19% QoQ/-13% for FY24. Total USD NAV ended the quarter at USD 353.0 mln, -26% QoQ/-20% for FY24. The 8% weakening of the SEK vs USD QoQ drove NAV growth currency differential.
NAV gains recorded YTD were more than reversed in the fourth quarter by a combination of a USD rally and a Brazilian asset sell off.
At a currency level, the BRL sold off 12% versus the USD QoQ, as the market refocused on Brazil's weak balance sheet combined with a lack of fiscal discipline. While emerging market currencies felt the brunt of the dollar rally, it also affected many developed benchmark peers including the EUR and SEK, off 6 and 8% over the quarter,
c. USD 83 mln, generating quarterly gross profit of c. USD 38 mln, making 3Q24 Creditas best-performing quarter ever. Since YE23 Creditas has been cash flow positive and management targets annual growth rate of 25%+ in the coming years, while remaining profitable.
Juspay, our second largest holding, has not missed a beat in terms of growth over recent years. The business continues to deliver 50%+ YoY growth through 2H24, in both volumes and revenues, at c. 90% gross margins – it is the standout size/growth name in our portfolio today. Konfío is on a similar path to Creditas, with trends of reigniting growth, following a period of focus and profitability attained. Origination growth in Konfío's key loan product, working capital loans, grew 50%+ YoY in recent months. Konfío is also cash flow positive and in a strong capital position following its recent fund raise in 3Q24 – all bodes well for 2025. Within the host of names coming through in the portfolio, Abhi deserves a mention this quarter as they delivered the significant milestone of acquiring Finca Microfinance Bank in Pakistan, with key partner TPL Corp. Omair Ansari, CEO and founder, could not have said it better: "When everyone was running out of Pakistan, we doubled down." It is that long-term vision and focus – doubling down when our markets are tough and the world turns away – that can deliver game-changing leaps on the road to success.
At a consolidated level, company level growth remains robust. We expect weighted average c. 35% growth in portfolio revenues and c. 40% in portfolio gross profit over the next twelve-month period.
Exits in focus – it begins with BlackBuck and Gringo
In 4Q24, we announced our first exit of this cycle with the IPO of BlackBuck, on the local India stock exchange (ticker: BLACKBUCK). This was our first portfolio company to IPO and exit in India. We partially exited our position in the company, selling 40% of our stake, realizing gross proceeds of c. USD 2 mln.
We supported this important event, as it allowed us to liquidate part of our position but also helped with value unlock in the name via the local stock exchange. We now also have a public, more liquid, holding in the portfolio. In line with robust company performance, the shares of Blackbuck had a strong start to traded life, up 72% from IPO to YE24. Our remaining 0.5% position was valued at USD 5.2 mln as at YE24.
with a variety of look throughs to our portfolio companies NAV marks.
At an equity level, a 4Q24 sell-off in key peer LatAm fintech stocks played counter to strong global benchmark fintech index gains. So while Ark Fintech Innovation ETF (ARKF) and Global X Fintech ETF (FINX), increased 24% and 12% QoQ, specific to our valuation process, LatAm benchmark emerging market fintech stocks like Meli, Nu, XP and Banco Inter were off 17–37% QoQ.
We mark down our holding in Creditas by 43% QoQ, a holding we value on a model basis. The majority of this move is driven by market (currency and peer multiple) moves. This is a dramatic quarterly move and we understand how a significant move in the valuation of our largest holding can look (and feel). That said, the market moves in Brazil through 4Q24 are transparent given the macro fallout and our valuation mark is simply reflecting market reality.
Close to twelve months since latest funding round, we move TransferGo to mark to model valuation, reducing its value mark by 32% in the process. Key drivers include peer multiples being lower today than when they last raised and which the round was broadly marked off. Currency was also a factor as TransferGo is mainly a EUR and emerging market currency asset.
Market inputs (currency and multiples) were more stable for Juspay in India and continued strong company delivery from Juspay drove its valuation mark up 13% QoQ.
As a reminder 74% of our active portfolio is marked to model, hence the oversized impact on market moves at this juncture. The remaining 26% of our active portfolio is now valued at last round valuation mark and we expect that portion to continue to grow through 2025 with further fund raises and exits on the horizon.
At the end of 4Q24, we sit on USD 12.8 mln of liquidity.
Portfolio: Growth back in focus and this cycle it is profitable growth
In quarters like these, it is key to separate headline NAV evolution from the actual performance of the underlying portfolio.
During the quarter, Creditas released headline 3Q24 IFRS results. 3Q24 was the fifth consecutive quarter with growing loan origination (17% QoQ/49% YoY), combined with expanding gross margin reaching 45.9% (above the 40–45% steady-state range). Revenues for the quarter hit
Post year end, we announced that Brazilian portfolio company, Gringo, has entered into a definitive agreement to be acquired by Sem Parar Instituicao de Pagamento Ltda. The transaction is expected to result in net proceeds of USD 15.2 mln for VEF, returning our invested amount. The transaction is taking place within a tight range of VEF's 3Q24 valuation mark for Gringo, in the face of strong BRL depreciation (-12%) over 4Q24, and has a less than 1% negative impact on VEF's 3Q24 NAV. The transaction is subject to customary closing conditions.
Strengthening our balance sheet via opportunistic portfolio exits close to our NAV mark has been a focused goal at VEF. The IPO of BlackBuck and the full sale of Gringo is a strong start, and we expect more in 2025. Capital in will prioritize de-levering our balance sheet, followed by opportunistic share buybacks. Bigger picture, the opportunity for the future of finance across growth markets remains immense. Our pipeline is growing, and we are regrouping to strengthen our capital position and once again take advantage of these opportunities.
Looking forward to 2025 and getting back on the front foot
As we moved through 2023, positive data points became more evident, and momentum returned. This fed into a strong 2024 for most aspects of our business. NAV marks can be volatile on a quarterly basis, and we are always quick to make adjustments as soon as events unfold.
We are long a focused quality fintech portfolio in scale geographies, well placed to create long-term value for our shareholders. Our goal remains to grow our NAV per share and close any discount to NAV. With capital flowing in the system once more, delivering exits and strengthening our balance sheet became a key focus – BlackBuck and Gringo are key, initial events on that front and we expect more in 2025. With cash in, we logically target the most obvious value-added areas of paying down our debt and buying back our shares at current levels.
At VEF, we continue to invest in fintech across the emerging world, riding one of the strongest multi-year secular growth trends in some of the world's fastestgrowing markets.
January 2025, Dave Nangle
VEF in charts
December 2015–December 2024 December 2015–December 2024 NAV evolution Share premium/discount to NAV
Investment portfolio
Net asset value
The investment portfolio stated at market value (KUSD) at December 31, 2024
| Company | Fair value Dec 31, 2024 |
Net invested amount |
Net investments/ divestments FY24 |
Change in fair value 4Q24 |
Change in fair value FY24 |
Fair value Dec 31, 2023 |
Valuation method |
|---|---|---|---|---|---|---|---|
| Creditas | 142,479 | 108,356 | – | -109,550 | -46,349 | 188,828 Mark-to-model | |
| Juspay | 83,999 | 21,083 | – | 5,151 | 9,946 | 74,053 Mark-to-model | |
| Konfío | 72,841 | 56,521 | – | – | -22,508 | 95,349 Latest transaction | |
| TransferGo | 26,571 | 13,877 | – | -12,227 | -425 | 26,996 Mark-to-model | |
| Gringo | 15,249 | 15,249 | – | -1,937 | -2,040 | 17,289 Calibration methodology |
|
| Solfácil | 13,734 | 20,000 | – | 68 | -1,894 | 15,628 Latest transaction | |
| Nibo | 10,378 | 6,500 | – | 259 | -2,330 | 12,708 Mark-to-model | |
| BlackBuck | 5,223 | 6,000 | -1,865 | 469 | -208 | 7,296 Publicly traded | |
| Other1 | 9,091 | 38,526 | -10 | -1,810 | -12,771 | 21,873 | |
| Liquidity investments | 4,107 | 800 | – | 51 | 214 | 3,893 | |
| Investment portfolio | 383,672 | 286,912 | -1,875 | -119,526 | -78,365 | 463,913 | |
| Cash and cash equivalents | 8,681 | 17,708 | |||||
| Other net liabilities | -39,392 | -39,392 | |||||
| Total net asset value | 352,961 | 442,229 |
Portfolio development
VEF's NAV per share decreased by 19% in SEK and by 26% in USD over 4Q24, while VEF's share price in SEK decreased by 13%. During the same period, the MSCI Emerging Markets index* increased by 13% in USD terms.
Liquidity investments
The Company has investments in money market funds as part of its liquidity management operations. As at December 31, 2024, the liquidity investments are valued at USD 4.1 mln.
Brazil 48%
- Includes all companies individually valued at less than 1% of the total portfolio. Companies included are: Abhi, FinanZero, Finja, Mahaana, minu, Revo
and Rupeek. For a more detailed presentation of these companies, see pages 37–45 in the 2023 Annual Report.
* The MSCI Emerging Markets Index is a free float weighted equity index that consists of indices in 24 emerging economies.
- Includes new investments made during the quarter, changes in net cash/debt position at portfolio companies and any accretion/dilution of our position 2. Includes new investments made during the quarter, changes to valuation based on public share prices or latest private transactions and any accretion/
4Q24 NAV evolution USD mln
dilution of our position
- Relates to the net translation effect on our sustainability bond and liquidity balances
Portfolio highlights
Creditas successfully raised USD 60 mln through its second international senior unsecured bond issuance, further solidifying its position in European capital markets. This strategic move highlights Creditas' commitment to efficient, sustainable growth and funding innovation while supporting the expansion of its secured lending products in Brazil.
Juspay strengthened its global footprint by establishing new offices in the United States, Ireland, Singapore and Brazil, enhancing its ability to serve enterprise merchants and tech-forward banks worldwide. These strategic moves enable Juspay to advance payment innovation through solutions like HyperSwitch, while streamlining complex payment ecosystems to cater to diverse global markets.
VEF's stake in Juspay appreciated 7% in 4Q24, contributing USD 5.2 mln to our NAV change. This was driven predominantly by strong business performance combined with a modest peer multiple expansion.
Key valuation considerations
VEF's stake in Creditas depreciated 43% in 4Q24, reducing our NAV by USD 109.6 mln. This was driven by weak peer multiples performance in the quarter, a 12% weakening of the BRL against the USD, reflecting a more challenging macro and interest rate outlook.
VEF's stake in TransferGo depreciated 32% in 4Q24, mostly reflective of moving the valuation to mark-to-model versus latest transaction. Key drivers include peer multiples being lower today than when they last raised and which the round was broadly marked off. Currency was also a factor as TransferGo is mainly a EUR and emerging market currency asset.
Since its IPO debut in November, BlackBuck has traded positively, with its share price rising 72% (as of 31 Dec 2024). BlackBuck reported strong Sep 24 quarterly results, achieving 54% YoY net revenue growth and generating an adjusted EBITDA margin of 24%.
Brazil India
Creditas is building an asset focused ecosystem that supports customers in three essential aspects: living (home), mobility (transport) and earning (salary) by primarily offering them asset-backed loans, insurance and consumer solutions. One of LatAm's leading private fintech plays, Creditas is on a clear path towards IPO.
In 2023 VEF made a follow-on investment of USD 5.0 mln into Creditas as part of a convertible round taking the total invested amount in Creditas to USD 108 mln.
Founded in 2020, Gringo is building a "super-app" for drivers in Brazil and currently offers vehicle-documentation related services, credit and insurance solutions. Gringo is focused on improving drivers' vehicle ownership journey in Brazil, which is currently riddled with pain points driven by analogue processes, massive paperwork and broken legacy systems.
In 3Q24, Gringo raised an additional USD 12 mln as part of its Series C extension round at Series C valuation. In total, VEF has invested USD 15.2 mln into Gringo.
Solfácil is building a digital ecosystem for solar energy adoption in Brazil. It offers a holistic solution covering solar equipment procurement and distribution, financing and insurance solutions for the end user, and proprietary IoT technology to optimise monitoring and service post installation.
In 1H22, VEF invested USD 20.0 mln into Solfácil, participating in its USD 130 mln Series C round led by QED and also saw participation from SoftBank and existing investors.
| creditas.com |
|---|
| Fair value (USD): 142.5 mln |
| VEF stake: 8.8% |
| Share of VEF's portfolio: 37.1% |
Fair value (USD): 15.2 mln
Share of VEF's portfolio:
4.0%
VEF stake: 9.7%
Fair value (USD): 13.7 mln
Share of VEF's portfolio: 3.6% 2.5%
VEF stake:
Nibo is the leading accounting SaaS provider in Brazil, transforming the way accountants and SMEs interact. Nibo services over 485,000 SMEs through more than 5,500 accountants on their platform.
Since VEF's initial investment into Nibo in 2017 VEF made two follow-on investments in 2019 and 2020 and has in total invested USD 6.5 mln.
| nibo.com.br |
|---|
| Fair value (USD): 10.4 mln |
| VEF stake: |
Share of VEF's portfolio: 20.1%
2.7%
Mexico
| Emerging Europe | |
|---|---|
| juspay.in | |
|---|---|
| Juspay is India's leading payment technology company offering a unifying layer of products and value-added services to merchants, thereby enabling them to improve their conversion rates. Juspay has played a key role in India's payment transformation |
Fair value (USD): 84.0 mln |
| and is present on 300 mln+ smartphones and processing USD 150 bln+ annualized TPV. VEF has made a cumulative investment of USD 21.1 mln into Juspay, investing USD 13.0 mln leading its broader Series B round in 2020 and investing USD 8.1 mln in its Series C |
VEF stake: 9.9% |
| Share of VEF's portfolio: 21.9% |
BlackBuck is India's leading digital trucking platform, offering solutions like tolling, fueling, telematics, and a digital marketplace to optimize logistics and trucking operations. The company also holds a lending license, enabling it to provide used vehicle financing to c. 700k monthly transacting users on its platform.
VEF made its initial USD 10 mln investment into BlackBuck in 3Q21. In November 2024, VEF partially exited its position through a share sale in BlackBuck's IPO, realizing gross proceeds of c.USD 2 mln while retaining 60% of its original stake in the now-listed business.
| blackbuck.com | |
|---|---|
| Fair value (USD): 5.2 mln |
|
| VEF stake: 0.5% |
|
| Share of VEF's portfolio: 1.4% |
TransferGo provides low-cost, fast, reliable digital money transfer services to migrants across Europe. Customers pay up to 90% less compared to using banks and have their money delivered securely in minutes.
TransferGo raised a USD 10 mln funding round from new investor Taiwania Capital in 1Q24. VEF first invested in TransferGo in 2Q16 and has invested a total of USD 13.9 mln into the company.
Konfío builds digital banking and software tools to boost SME growth and productivity, offering working capital loans, credit cards and digital payments solutions.
In 3Q24, Konfío raised fresh funding in a round led by internal investors, with the round priced approximately at VEF's most recent mark-to-model valuation from 2Q24. VEF has invested a total of USD 56.5 mln into Konfío.
| konfio.mx | |
|---|---|
| Fair value (USD): 72.8 mln |
|
| VEF stake: 9.9% |
|
| Share of VEF's portfolio: 19.0% |
Financial information
Investments
During 1Q24, no investments in financial assets have been made (1Q23: USD 0.0 mln).
During 2Q24, no investments in financial assets have been made (2Q23: USD 0.0 mln).
During 3Q24, no investments in financial assets have been made (3Q23: USD 8.0 mln).
During 4Q24, no investments in financial assets have been made (4Q23: USD 0.0 mln).
Divestments
Net divestments in financial assets during FY24 were USD 1.9 mln, of which the vast majority relates to the IPO of BlackBuck were VEF sold 40% of its holding in the company (FY23: USD 39.2 mln).
Share info
VEF AB (publ)'s share capital per December 31, 2024, is distributed among 1,113,917,500 shares with a par value of SEK 0.01 per share. For more information on the share capital please refer to Note 5.
Share repurchases
At the annual general meeting of the Company on May 14, 2024, the Board's mandate to buy back own shares was renewed. The Board has not used the mandate and the Company currently holds no shares in treasury.
Group – results for FY24
During FY24, the result from financial assets at fair value through profit or loss amounted to USD -78.4 mln (FY23: 74.4).
- Operating expenses amounted to USD -6.5 mln (FY23: -7.1).
- Net financial items were USD -1.2 mln (FY23: -7.1).
- Net result was USD -89.9 mln (FY23: 60.1).
- Total shareholders' equity amounted to USD 353.0 mln (YE23: 442.2).
Group – results for 4Q24
During 4Q24, the result from financial assets at fair value through profit or loss amounted to USD -119.5 mln (4Q23: 26.6).
- Operating expenses amounted to USD -1.4 mln (4Q23: -2.1).
- Net financial items were USD 2.2 mln (4Q23: -5.1).
- Net result was USD -122.2 mln (4Q23: 19.4).
Financial markets had a mixed quarter, with the US markets closing the year up strongly whereas many emerging market indices posted weak returns in 4Q24. A strengthening US dollar, rising US bond yields and anticipated stronger growth under a pro-growth new presidential agenda were factors driving increased capital flows towards US assets.
Brazil had a challenging quarter, with the Central Bank increasing interest rates sharply and signalling further increases to stem currency weakness. Confidence weakened in the government's commitment to fiscal discipline.
Underneath the major indices, including the fintech indices we track, emerging market fintech public companies posted mixed performance with LatAm listed companies posting sharp falls whilst several benchmark Indian fintechs posted robust returns.
Key drivers of overall NAV performance during 4Q24 were currency weakness primarily in Brazil and lower valuation multiples predominantly from US-listed Brazilian Fintech companies.
Liquid assets
The liquid assets of the Group, defined as cash and bank deposits, amounted to USD 8.7 mln on December 31, 2024 (YE23: 17.7). The Company also has placements in money market funds as part of its liquidity management operations. As of December 31, 2024, the liquidity placements are valued at USD 4.1 mln (YE23: 3.9).
Parent company
The parent company, VEF AB (publ), is the holding company of the Group. The net result for FY24 was SEK 37.2 mln (FY23: 100.2). VEF AB (publ) is the parent of three wholly owned subsidiaries: VEF Cyprus Limited, VEF Fintech Ireland Limited and VEF UK Ltd. VEF AB (publ) is the direct shareholder of three portfolio companies.
Current market environment
Risk asset performance was mixed in 4Q24. During the quarter, the global fintech indices ARKF and FINX that VEF is tracking, showed positive returns of 24% and 12% respectively. However, LatAm fintech, specifically those companies most exposed to Brazil, saw sharp falls with companies like Meli, Nu, XP and Banco Inter off 17–37% QoQ.
Venture markets continue to recover, with increased activity in investing across stages, new fund launches and most importantly exits (M&A, IPO and secondary sales) occurring again. Despite the robust share price performance in 2024 (+20%), VEF shares continue to trade at a deep discount to the latest reported NAV. VEF's financial position remains comfortable with a solid balance sheet and a USD 12.8 mln liquidity position at the end of 4Q24. Importantly, more than 90% of our active portfolio already are or have the capacity to reach break-even without additional funding, the remaining portfolio companies have a weighted cash runway of 27 months.
Consolidated income statement Consolidated balance sheet
| KUSD | Note | FY 2024 | FY 2023 | 4Q 2024 | 4Q 2023 |
|---|---|---|---|---|---|
| Result from financial assets at fair value through profit or loss | 4 | -78,365 | 74,395 | -119,526 | 26,582 |
| Other income | – | 18 | – | – | |
| Administrative and operating expenses | -6,494 | -7,116 | -1,423 | -2,052 | |
| Operating result | -84,859 | 67,297 | -120,949 | 24,530 | |
| Financial income and expenses | |||||
| Interest income | 493 | 531 | 89 | 322 | |
| Interest expense | -4,279 | -7,966 | -971 | -3,798 | |
| Currency exchange gains/losses, net | 2,617 | 336 | 3,089 | -1,619 | |
| Net financial items | -1,169 | -7,099 | 2,207 | -5,095 | |
| Result before tax | -86,028 | 60,198 | -118,742 | 19,435 | |
| Taxation | -3,835 | -132 | -3,441 | -19 | |
| Net result for the period | -89,863 | 60,066 | -122,183 | 19,416 | |
| Earnings per share, USD | 9 | -0.09 | 0.06 | -0.12 | 0.02 |
| Diluted earnings per share, USD | 9 | -0.09 | 0.06 | -0.12 | 0.02 |
The Group have no items to account for as other comprehensive income and therefore the net result for the period is equal to the total comprehensive income for the period.
| KUSD | Note | Dec 31, 2024 | Dec 31, 2023 |
|---|---|---|---|
| NON-CURRENT ASSETS | |||
| Tangible non-current assets | |||
| Property, plant and equipment | 49 | 100 | |
| Total tangible non-current assets | 49 | 100 | |
| Financial non-current assets | |||
| Financial assets at fair value through profit or loss | 4 | ||
| Equity financial assets | 379,565 | 460,020 | |
| Liquid financial assets | 4,107 | 3,893 | |
| Other financial assets | 34 | 35 | |
| Total financial non-current assets | 383,706 | 463,948 | |
| CURRENT ASSETS | |||
| Tax receivables | 51 | 277 | |
| Other current receivables | 76 | 191 | |
| Prepaid expenses | 98 | 123 | |
| Cash and cash equivalents | 8,681 | 17,708 | |
| Total current assets | 8,906 | 18,299 | |
| TOTAL ASSETS | 392,661 | 482,347 | |
| SHAREHOLDERS' EQUITY (including net result for the financial period) | 352,961 | 442,229 | |
| NON-CURRENT LIABILITIES | |||
| Long-term liabilities | 6 | 35,763 | 38,891 |
| Deferred tax | 3,300 | – | |
| Total non-current liabilities | 39,063 | 38,891 | |
| CURRENT LIABILITIES | |||
| Accounts payable | 93 | 40 | |
| Tax liabilities | 54 | 64 | |
| Other current liabilities | 163 | 195 | |
| Accrued expenses | 327 | 928 | |
| KUSD | Note | Dec 31, 2024 | Dec 31, 2023 |
|---|---|---|---|
| NON-CURRENT ASSETS | |||
| Tangible non-current assets | |||
| Property, plant and equipment | 49 | 100 | |
| Total tangible non-current assets | 49 | 100 | |
| Financial non-current assets | |||
| Financial assets at fair value through profit or loss | 4 | ||
| Equity financial assets | 379,565 | 460,020 | |
| Liquid financial assets | 4,107 | 3,893 | |
| Other financial assets | 34 | 35 | |
| Total financial non-current assets | 383,706 | 463,948 | |
| CURRENT ASSETS | |||
| Tax receivables | 51 | 277 | |
| Other current receivables | 76 | 191 | |
| Prepaid expenses | 98 | 123 | |
| Cash and cash equivalents | 8,681 | 17,708 | |
| Total current assets | 8,906 | 18,299 | |
| TOTAL ASSETS | 392,661 | 482,347 | |
| SHAREHOLDERS' EQUITY (including net result for the financial period) | 352,961 | 442,229 | |
| NON-CURRENT LIABILITIES | |||
| Long-term liabilities | 6 | 35,763 | 38,891 |
| Deferred tax | 3,300 | – | |
| Total non-current liabilities | 39,063 | 38,891 | |
| CURRENT LIABILITIES | |||
| Accounts payable | 93 | 40 | |
| Tax liabilities | 54 | 64 | |
| Other current liabilities | 163 | 195 | |
| Accrued expenses | 327 | 928 | |
| Total current liabilities | 637 | 1,227 |
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 392,661 482,347
Consolidated statement of changes in equity
Consolidated statement of cash flows
| KUSD | Note | Share capital |
Additional paid in capital |
Retained earnings |
Total |
|---|---|---|---|---|---|
| Balance at Jan 1, 2023 | 1,318 | 94,892 | 285,621 | 381,831 | |
| Net result for the period | – | – | 60,066 | 60,066 | |
| Transactions with owners: | |||||
| Retiring of shares | -12 | -2,899 | – | -2,912 | |
| Bonus issue | 12 | 2,899 | – | 2,912 | |
| Value of employee services: | |||||
| - Employee share option scheme | 7 | – | 6 | – | 6 |
| - Share based long-term incentive program | 8 | – | 326 | – | 326 |
| Balance at Dec 31, 2023 | 1,318 | 95,224 | 345,687 | 442,229 |
| Balance at Jan 1, 2024 | 1,318 | 95,224 | 345,687 | 442,229 | |
|---|---|---|---|---|---|
| Net result for the period | – | – | -89,863 | -89,863 | |
| Transactions with owners: | |||||
| Retiring of shares | -3 | – | -3 | -6 | |
| Bonus issue | 3 | 3 | – | 6 | |
| Value of employee services: | |||||
| - Employee share option scheme | 7 | – | 3 | – | 3 |
| - Share based long-term incentive program | 8 | 24 | 568 | – | 592 |
| Balance at Dec 31, 2024 | 1,342 | 95,798 | 255,821 | 352,961 |
| KUSD | FY 2024 | FY 2023 | 4Q 2024 | 4Q 2023 |
|---|---|---|---|---|
| OPERATING ACTIVITIES | ||||
| Result before tax | -86,028 | 60,198 | -118,742 | 19,435 |
| Adjustment for non-cash items: | ||||
| Interest income and expense, net | 3,786 | 7,435 | 882 | 3,476 |
| Currency exchange gains/-losses, net | -2,617 | -336 | -3,089 | 1,619 |
| Depreciations | 50 | 56 | 21 | 15 |
| Result from financial assets at fair value through profit or loss | 78,365 | -74,395 | 119,526 | -26,582 |
| Other non-cash items affecting profit or loss | 570 | 333 | 173 | 82 |
| Adjustment for cash items: | ||||
| Change in current receivables | 141 | -745 | -2 | -722 |
| Change in current liabilities | -632 | -103 | -121 | -297 |
| Adjustments of cash flow in operating activities | -6,365 | -7,557 | -1,352 | -2,974 |
| Investments in financial assets | – | -8,000 | – | – |
| Sales of financial assets | 1,876 | 39,159 | 1,866 | 25,000 |
| Interest received | 493 | 531 | 89 | 322 |
| Tax paid | -288 | -70 | -140 | – |
| Net cash flow from/used in operating activities | -4,284 | 24,063 | 463 | 22,348 |
| FINANCING ACTIVITIES | ||||
| Interest paid on sustainability bonds | -4,018 | -7,521 | -909 | -3,842 |
| Proceeds from sustainability bonds | – | 38,278 | – | 38,278 |
| Redemption of sustainability bonds | – | -48,483 | – | -48,483 |
| Proceeds from new share issue through employee options | 24 | – | – | – |
| Net cash flow from/used in financing activities | -3,994 | -17,726 | -909 | -14,047 |
| Cash flow for the period | -8,278 | 6,337 | -446 | 8,301 |
| Cash and cash equivalents at beginning of the period | 17,708 | 8,612 | 9,125 | 6,729 |
| Exchange gains/losses on cash and cash equivalents | -749 | 2,759 | 2 | 2,678 |
| Cash and cash equivalents at end of the period | 8,681 | 17,708 | 8,681 | 17,708 |
Alternative performance measures Parent company income statement
| Note | Dec 31, 2024 | Dec 31, 2023 | |
|---|---|---|---|
| Equity ratio | 9 | 89.9% | 91.7% |
| Net asset value, USD | 9 | 352,960,944 | 442,229,211 |
| Exchange rate at balance sheet date, SEK/USD | 11.00 | 10.04 | |
| Net asset value/share, USD | 9 | 0.34 | 0.42 |
| Net asset value/share, SEK | 9 | 3.73 | 4.26 |
| Net asset value, SEK | 9 | 3,881,917,760 | 4,440,676,513 |
| Share price, SEK | 2.21 | 1.84 | |
| Traded premium/discount(-) to NAV | 9 | -40.8% | -56.9% |
| Weighted average number of shares for the financial period | 9 | 1,041,865,735 | 1,041,865,735 |
| Weighted average number of shares for the financial period, fully diluted | 9 | 1,041,865,735 | 1,041,865,735 |
| Number of shares at balance sheet date | 9 | 1,041,865,735 | 1,041,865,735 |
| Number of shares at balance sheet date, fully diluted | 9 | 1,041,865,735 | 1,041,865,735 |
Alternative Performance Measures (APMs) are financial measures other than financial measures defined or specified by International Financial Reporting Standards (IFRS) and have been issued by the European Securities and Markets Authority (ESMA).
VEF regularly uses alternative performance measures to enhance comparability from period to period and to give deeper information and provide meaningful supplemental information to analysts, investors, and other parties.
It is important to know that not all companies calculate alternative performance measures identically, therefore these measurements have limitations and should not be used as a substitute for measures of performance in accordance with IFRS.
Below you find our presentation of the APMs. For more information on how the APMs are calculated, see Note 9.
| KSEK | FY 2024 | FY 2023 | 4Q 2024 | 4Q 2023 |
|---|---|---|---|---|
| Result from financial assets at fair value through profit or loss | 154,915 | 219,153 | 145,813 | -14,337 |
| Other income | – | 3,369 | – | – |
| Administrative and operating expenses | -44,159 | -42,236 | -10,582 | -12,488 |
| Operating result | 110,756 | 180,286 | 135,231 | -26,825 |
| Financial income and expenses | ||||
| Interest income | 4,471 | 4,652 | 812 | 3,150 |
| Interest expense | -44,772 | -82,170 | -10,656 | -38,872 |
| Currency exchange gains/losses, net | 3,014 | -2,594 | 5,926 | -4,288 |
| Net financial items | -37,287 | -80,112 | -3,918 | -40,010 |
| Result before tax | 73,469 | 100,174 | 131,313 | -66,835 |
| Taxation | -36,294 | – | -36,294 | – |
| Net result for the period | 37,175 | 100,174 | 95,019 | -66,835 |
The Parent Company have no items to account for as other comprehensive income and therefore the net result for the period is equal to the total
comprehensive income for the period.
Parent company balance sheet
| KSEK | Note | Dec 31, 2024 | Dec 31, 2023 |
|---|---|---|---|
| NON-CURRENT ASSETS | |||
| Financial non-current assets | |||
| Shares in subsidiaries | 2,562,161 | 2,519,361 | |
| Financial assets at fair value through profit or loss | |||
| Equity financial assets | 1,022,868 | 894,463 | |
| Liquid financial assets | 45,170 | 39,089 | |
| Other financial assets | 50 | 50 | |
| Total financial non-current assets | 3,630,249 | 3,452,963 | |
| CURRENT ASSETS | |||
| Tax receivables | 118 | 245 | |
| Other current receivables | 727 | 1,740 | |
| Other current receivables, Group | 1,487 | 6,352 | |
| Prepaid expenses | 912 | 1,136 | |
| Cash and cash equivalents | 78,152 | 171,628 | |
| Total current assets | 81,396 | 181,101 | |
| TOTAL ASSETS | 3,711,645 | 3,634,064 | |
| SHAREHOLDERS' EQUITY (including net result for the financial period) | 5 | 3,274,140 | 3,232,214 |
| NON-CURRENT LIABILITIES | |||
| Long-term liabilities | 6 | 393,333 | 390,000 |
| Deferred tax | 36,294 | – | |
| Total non-current liabilities | 429,627 | 390,000 | |
| CURRENT LIABILITIES | |||
| Accounts payable | 875 | 398 | |
| Other current liabilities, Group | 3,242 | 3,938 | |
| Other current liabilities | 585 | 828 | |
| Accrued expenses | 3,176 | 6,686 | |
| Total current liabilities | 7,878 | 11,850 | |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 3,711,645 | 3,634,064 |
Parent company statement of changes in equity
| KSEK | Note | Share capital |
Additional paid in capital |
Retained earnings |
Total |
|---|---|---|---|---|---|
| Balance at Jan 1, 2023 | 11,067 | 821,401 | 2,296,202 | 3,128,670 | |
| Net result for the period | – | – | 100,174 | 100,174 | |
| Transactions with owners: | |||||
| Retiring of shares | -135 | -31,559 | -7 | -31,700 | |
| Bonus issue | 135 | 31,565 | – | 31,700 | |
| Value of employee services: | |||||
| - Employee share option scheme | 7 | – | 66 | – | 66 |
| - Share based long-term incentive program | 8 | – | 3,304 | – | 3,304 |
| Balance at Dec 31, 2023 | 11,067 | 824,777 | 2,396,370 | 3,232,214 |
| Transactions with owners: |
|---|
| Value of employee services: |
| Transactions with owners: |
| Value of employee services: |
| Balance at Jan 1, 2024 | 11,067 | 824,777 | 2,396,370 | 3,232,214 | |
|---|---|---|---|---|---|
| Net result for the period | – | – | 37,175 | 37,175 | |
| Transactions with owners: | |||||
| Retiring of shares | -35 | – | -35 | -70 | |
| Bonus issue | 35 | 35 | – | 70 | |
| Value of employee services: | |||||
| - Employee share option scheme | 7 | – | 34 | – | 34 |
| - Share based long-term incentive program | 8 | 256 | 4,461 | – | 4,717 |
| Balance at Dec 31, 2024 | 11,323 | 829,307 | 2,433,510 | 3,274,140 |
Notes
(Expressed in KUSD unless indicated otherwise)
Note 1
General information
VEF AB (publ) was incorporated on December 7, 2020 and the registered office is at Mäster Samuelsgatan 1, 111 44 Stockholm, Sweden. The common shares of VEF AB (publ) are listed on Nasdaq Stockholm Main Market with the ticker VEFAB.
As of December 31, 2024, the VEF Group consists of the Swedish Parent Company VEF AB (publ) and three wholly owned subsidiaries: VEF Cyprus Limited, VEF Fintech Ireland Limited and VEF UK Ltd. VEF Cyprus Limited act as the main investment vehicle for the group, holding twelve of fifteen investments at balance date. VEF AB (publ) holds the remaining three and acts as a service company, together with VEF Fintech Ireland Limited and VEF UK Ltd, providing business and investment support services to the Group.
The financial year is January 1–December 31.
Parent company
The Parent Company VEF AB (publ) is a public limited liability company, incorporated in Sweden and operating under Swedish law. VEF AB (publ) directly owns all the companies in the Group. The net result for FY24 was SEK 37.2 mln (FY23: 100.2). VEF AB (publ) was incorporated on December 7, 2020. The parent company has two employees per December 31, 2024.
Accounting principles
This interim report has, for the Group, been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The financial reporting for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for legal entities, issued by the Swedish Financial Reporting Board.
Under Swedish company regulations it is not allowed to report the Parent Company results in any other currency than SEK or EUR and consequently the Parent Company's financial information is reported in SEK and not the Group's reporting currency of USD.
The accounting principles in the 2023 Annual Report sets out the principles for the Group and the Parent company.
Note 2 — Financial and operating risks
For a detailed account of risks associated with investing in VEF and VEF's business, please see the 2023 Annual Report, Note 2.
Note 3 — Related party transactions
Related party transactions for the period are of the same character as described in the 2023 Annual Report. During the period VEF has recognized the following related party transactions:
| Operating expenses | Current liabilities | |||
|---|---|---|---|---|
| FY 2024 | FY 2023 | Dec 31, 2024 | Dec 31, 2023 | |
| Key management and Board of Directors¹ | 2,727 | 3,081 | – | – |
- Compensation paid or payable includes salary, bonus, share based remuneration and pension to the management and remuneration to the Board members.
Note 4 — Fair value estimation
The fair value of financial instruments traded in active markets is based on quoted market prices at the balance sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry company, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in Level 1. The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to determine the fair value of an instrument are observable, the instrument is included in Level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Investments in assets that are not traded on any market will be held at fair value determined by recent transactions made at prevailing market conditions or different valuation models depending on the characteristics of the company as well as the nature and risks of the investment. These different techniques may include discounted cash flow valuation (DCF), exit-multiple valuation also referred to as leveraged buyout (LBO) valuation, asset-based valuation as well as forward looking multiples valuation based on comparable traded companies (peer companies). Usually, transaction-based valuations are kept unchanged for a period of twelve months unless there is cause for a significant change in valuation. After twelve months, the fair value for non-traded assets will normally be derived through any of the models described above.
The validity of valuations based on a transaction is inevitably eroded over time, since the price at which the investment was made reflects the conditions that existed on the transaction date. At each reporting date, possible changes or events subsequent to the relevant transaction are assessed and if this assessment implies a change in the investment's fair value, the valuation is adjusted accordingly. The transaction-based valuations are also frequently assessed using multiples of comparable traded companies for each unlisted investment or other valuation models when warranted.
VEF follows a structured process in assessing the valuation of its unlisted investments. VEF evaluates company specific and external data relating to each specific investment on an ongoing basis. The data is then assessed at quarterly valuation meetings by senior management. If internal or external factors are deemed to be significant, further assessment is undertaken and the specific investment is revalued to the best fair value estimate. Revaluations are first reviewed by the audit committee and later approved by the Board in connection with the Company's financial reports.
The fair value of financial instruments is measured by level of the following fair value measurement hierarchy:
- Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities.
- directly (that is, as prices) or indirectly (that is, derived from prices).
• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
• Level 3 – Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
Investments are moved between levels in the fair value hierarchy when the management finds the best suitable valuation technique has changed and that the current applied technique results in a new classification in the fair value hierarchy compared to the prior period.
As per December 31, 2024, VEF has a liquidity management portfolio of listed money market funds that are classified as Level 1 investments.
The investments in Creditas, Juspay, TransferGo and Nibo are classified as Level 3 investments. The remaining smaller portfolio companies are either classified as Level 2 or Level 3 investments. During the quarter, Solfácil was transferred from Level 3 to Level 2 and BlackBuck was transferred from Level 3 to Level 1 post its IPO. TransferGo was transferred from Level 2 to Level 3.
| Level 1 | Level 2 | Level 3 | Total balance | |
|---|---|---|---|---|
| Financial assets at fair value through profit or loss | 9,330 | 107,230 | 267,112 | 383,672 |
| of which: | ||||
| Liquidity placements | 4,107 | – | – | 4,107 |
| Shares | 5,223 | 107,230 | 231,229 | 343,682 |
| Convertibles and SAFE notes | – | – | 35,883 | 35,883 |
| Total assets | 9,330 | 107,230 | 267,112 | 383,672 |
| Level 1 | Level 2 | Level 3 | Total balance | |
|---|---|---|---|---|
| Financial assets at fair value through profit or loss | 3,893 | 34,421 | 425,599 | 463,913 |
| of which: | ||||
| Liquidity placements | 3,893 | – | – | 3,893 |
| Shares | – | 34,421 | 391,808 | 426,229 |
| Convertibles and SAFE notes | – | – | 33,791 | 33,791 |
| Total assets | 3,893 | 34,421 | 425,599 | 463,913 |
Assets measured at fair value at Dec 31, 2024
Assets measured at fair value at Dec 31, 2023
| Dec 31, 2024 | Dec 31, 2023 | |
|---|---|---|
| Opening balance Jan 1 | 425,599 | 269,214 |
| Transfers from Level 2 to Level 31 | 8,395 | 75,056 |
| Transfers from Level 3 to Level 11 | -7,296 | – |
| Transfers from Level 3 to Level 21 | -111,655 | -2,637 |
| Change in fair value | -47,931 | 83,966 |
| Closing balance | 267,112 | 425,599 |
Changes of financial assets in Level 3
- No deviations have been made from established guidelines regarding valuation techniques and transfers of assets between levels in the hierarchy.
Mark-to-model-based valuations
Creditas, Juspay, TransferGo and Nibo are all valued on the basis of a twelve-months (NTM) forward looking revenue and gross profit multiple. Inputs used for each valuation include risk adjusted revenue and earnings forecasts, local currency moves and listed peer group revenue and/or gross profit multiples as of December 31, 2024.
The difference in fair value change between the portfolio companies is dependent on relative revenue and/or gross profit forecasts in each company as well as moves in the relevant peer group and moving exchange rates. Peers used in the peer set include a mix of listed emerging and developed market companies representing accounting SaaS companies, fast growth payments companies and a range of Latin American fintech companies. The NTM multiples across the different peer groups range from 0.6x to 17.3x revenues and 1.9-17.7x gross profit. As a standard process, the median of each group is used, and in applicable cases VEF will adjust the resulting multiple based on prevailing local market conditions, sector and company specific factors, applying discounts or premiums to reflect the fair value of the company.
Calibration methodology-based valuations
In 4Q24, we use the calibration methodology in our portfolio valuation process. The calibration methodology specifically helps us calibrating valuations of companies with recently closed priced investment rounds and where the implied valuation multiple or currency exchange rate has moved significantly out of sync with our pre-determined comp group or the currency exchange rate at the time of the latest transaction.
Inputs used for the valuation include risk adjusted revenue and gross profit forecasts, currency moves and the implied revenue and gross profit multiple paid at the time of the latest transaction relative to a relevant peer group adjusted for market moves in the same peer group as of December 31, 2024. At the end of 2024, one company, Gringo, was valued using the calibration methodology.
Transaction-based valuations
Holdings classified as Level 2 investments are valued based on the latest transaction in the company, on market terms. The validity of valuations based on a transaction is inevitably eroded over time, since the price at which the investment was made reflects the conditions that existed on the transaction date. At each reporting date, possible changes or events subsequent to the relevant transaction are assessed and if this assessment implies a change in the investment's fair value, the valuation is adjusted accordingly. The transaction-based valuations are frequently assessed using multiples of comparable traded companies for each unlisted investment or other valuation models. When transaction-based valuations of unlisted holdings are used, no material event is deemed to have occurred in the specific portfolio company that would suggest that the transaction-based value is no longer valid. The majority of the holdings valued on the basis of the latest transactions demonstrate strong revenue growth profiles and are set to deliver growth broadly in line with their respective business plans on which the latest transaction was based.
| Company | Valuation method |
Date latest transaction |
|---|---|---|
| Konfío | Latest transaction |
3Q24 |
| Solfácil | Latest transaction |
4Q24 |
Below table summarizes the sensitivity of the assets value to changes in the underlying multiple used for the valuation.
Sensitivity analysis of valuations based on changes in peer group multiples used
| Peer group range valuation method | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Company | Revenue multiple | Gross profit multiple | -15% | -10% | -5% | 0% | +5% | +10% | +15% |
| Creditas | 0.6–7.2x | 1.9–17.7x | 122,393 | 129,088 | 135,784 | 142,479 | 149,174 | 155,869 | 162,565 |
| Juspay | 6.4–17.3x | 7.0–17.3x | 71,954 | 75,969 | 79,984 | 83,999 | 88,014 | 92,028 | 96,043 |
| TransferGo | 2.5–3.7x | 4.4–5.6x | 22,743 | 24,019 | 25,295 | 26,571 | 27,847 | 29,123 | 30,399 |
| Nibo | 2.5–11.7x | 3.5–12.8x | 8,949 | 9,425 | 9,901 | 10,378 | 10,854 | 11,330 | 11,806 |
Change in financial assets at fair value through profit or loss
| Company | Jan 1, 2024 | Investments/ (divestments), net |
Fair value change |
Dec 31, 2024 | Percentage of portfolio |
VEF ownership stake |
|---|---|---|---|---|---|---|
| Creditas | 188,828 | – | -46,349 | 142,479 | 37.1% | 8.8% |
| Juspay | 74,053 | – | 9,946 | 83,999 | 21.9% | 9.9% |
| Konfío | 95,349 | – | -22,508 | 72,841 | 19.0% | 9.8% |
| TransferGo | 26,996 | – | -425 | 26,571 | 6.9% | 11.3% |
| Gringo | 17,289 | – | -2,040 | 15,249 | 4.0% | 9.7% |
| Solfácil | 15,628 | – | -1,894 | 13,734 | 3.6% | 2.5% |
| Nibo | 12,708 | – | -2,330 | 10,378 | 2.7% | 20.1% |
| BlackBuck | 7,296 | -1,865 | -208 | 5,223 | 1.4% | 0.5% |
| Other1 | 21,873 | -10 | -12,771 | 9,091 | 2.3% | |
| Liquidity investments | 3,893 | – | 214 | 4,107 | 1.1% | |
| Total | 463,913 | -1,875 | -78,365 | 383,672 | 100% |
Note 7 – Option plan
Per December 31, 2024, VEF has no outstanding options. The final cost for the below options was accounted for in December 2024.
| Option grant date | Dec 17, 2019 |
|---|---|
| Maturity date | Dec 17, 2024 |
| Option price at grant date SEK | 0.34 |
| Share price at grant date SEK | 2.95 |
| Exercise price SEK | 3.69 |
| Volatility | 22.80% |
| Risk free interest rate | -0.29% |
| No. of options granted | 500,000 |
For more information on the option plan, please see Note 8 in the 2023 Annual Report.
Note 6 – Long-term liabilities
Sustainability bonds 2023/2026
During 4Q23, VEF issued sustainability bonds of three years, to the amount of SEK 500 mln, within a frame of SEK 1,000 mln. VEF holds SEK 100 mln of the bonds. The bonds carry a floating coupon of 3m Stibor + 650 bps with interest paid quarterly. The bonds are due in December 2026. The bonds are trading on the sustainable bond list of Nasdaq Stockholm and the Open Market of the Frankfurt Stock Exchange. In connection with the issuance of the 2023/2026 bonds the outstanding 2022/2025 bonds were redeemed in full.
Note 5 – Share capital
VEF AB (publ)'s share capital per December 31, 2024, is distributed among 1,113,917,500 shares with a par value of SEK 0.01 per share as set out in the table below. Each share of the Company carries one vote. The common shares trade on Nasdaq Stockholm Main Market, Mid Cap-segment.
The convertible shares of Class C 2020–2023 are held by management and key personnel of VEF under the Company's long-term incentive programs. The Class C shares are redeemable pursuant to the terms set out in VEF's articles of association.
| Share class | Number of shares | Number of votes | Share capital (SEK) |
|---|---|---|---|
| Common shares | 1,041,865,735 | 1,041,865,735 | 10,550,600 |
| Class C 2020 | 31,720,500 | 31,720,500 | 321,222 |
| Class C 2021 | 7,044,835 | 7,044,835 | 71,341 |
| Class C 2022 | 9,061,430 | 9,061,430 | 91,762 |
| Class C 2023 | 11,725,000 | 11,725,000 | 118,734 |
| Class C 2024 | 12,500,000 | 12,500,000 | 126,583 |
| Total | 1,113,917,500 | 1,113,917,500 | 11,280,242 |
- Includes all companies individually valued at less than 1% of the total portfolio. Companies included are: Abhi, FinanZero, Finja, Mahaana, minu, Revo and Rupeek. For a more detailed presentation of these companies, see pages 37–45 in the 2023 Annual Report.
| LTIP 2020 | LTIP 2021 | LTIP 2022 | LTIP 2023 | LTIP 2024 | |
|---|---|---|---|---|---|
| Performance measurement period | Jan 2020– Dec 2024 |
Jan 2021– Dec 2025 |
Jan 2022– Dec 2026 |
Jan 2023– Dec 2027 |
Jan 2024– Dec 2028 |
| Vesting period | Nov 2020– Mar 2025 |
Sep 2021– Mar 2026 |
Aug 2022– Mar 2025 |
Jan 2024– Mar 2026 |
May 2024– Mar 2027 |
| Maximum no of shares Managing Director | 13,300,000 | 3,325,000 | 3,325,000 | 3,517,500 | 3,625,000 |
| Maximum no of shares others | 18,420,500 | 3,719,835 | 5,736,430 | 8,207,500 | 8,875,000 |
| Maximum no of shares, total | 31,720,500 | 7,044,835 | 9,061,430 | 11,725,000 | 12,500,000 |
| Maximum dilution | 2.95% | 0.67% | 0.86% | 1.11% | 1.19% |
| Share price on grant date, SEK | 3.14 | 4.34 | 2.31 | 1.87 | 2.34 |
| Plan share price on grant date, SEK1 | 0.37 | 0.62 | 0.10 | 0.30 | 0.53 |
| Total employee benefit expense excl. bonuses paid and social taxes |
LTIP 2020 2 | LTIP 2021 2 | LTIP 2022 2 | LTIP 2023 2 | LTIP 2024 2 |
| 2024 | 175 | 59 | 29 | 157 | 147 |
| 2023 | 187 | 103 | 31 | – | – |
| 2022 | 204 | 131 | 14 | – | – |
| 2021 | 201 | 22 | – | – | – |
| 2020 | 31 | – | – | – | – |
| LTIP 2020 | LTIP 2021 | LTIP 2022 | LTIP 2023 | LTIP 2024 | |
|---|---|---|---|---|---|
| Performance measurement period | Jan 2020– Dec 2024 |
Jan 2021– Dec 2025 |
Jan 2022– Dec 2026 |
Jan 2023– Dec 2027 |
Jan 2024– Dec 2028 |
| Vesting period | Nov 2020– Mar 2025 |
Sep 2021– Mar 2026 |
Aug 2022– Mar 2025 |
Jan 2024– Mar 2026 |
May 2024– Mar 2027 |
| Maximum no of shares Managing Director | 13,300,000 | 3,325,000 | 3,325,000 | 3,517,500 | 3,625,000 |
| Maximum no of shares others | 18,420,500 | 3,719,835 | 5,736,430 | 8,207,500 | 8,875,000 |
| Maximum no of shares, total | 31,720,500 | 7,044,835 | 9,061,430 | 11,725,000 | 12,500,000 |
| Maximum dilution | 2.95% | 0.67% | 0.86% | 1.11% | 1.19% |
| Share price on grant date, SEK | 3.14 | 4.34 | 2.31 | 1.87 | 2.34 |
| Plan share price on grant date, SEK1 | 0.37 | 0.62 | 0.10 | 0.30 | 0.53 |
| Total employee benefit expense excl. bonuses paid and social taxes |
LTIP 2020 2 | LTIP 2021 2 | LTIP 2022 2 | LTIP 2023 2 | LTIP 2024 2 |
| 2024 | 175 | 59 | 29 | 157 | 147 |
| 2023 | 187 | 103 | 31 | – | – |
| 2022 | 204 | 131 | 14 | – | – |
| 2021 | 201 | 22 | – | – | – |
| 2020 | 31 | – | – | – | – |
| Total accumulated | 798 | 315 | 74 | 157 | 147 |
Note 8 – Long-term share-based incentive program (LTIP)
There are five running LTIP programs for management and key personnel in the VEF Group. Four of the running programs, LTIP 2020–2023 are linked to the long-term performance of both the Company's NAV and of the VEF share price. The LTIP 2024 program is only linked to the VEF share price. For more information on the LTIPs, please see Note 8 in the 2023 Annual Report.
-
The difference in common share price and plan share price derive from that plan share price has been calculated using the Monte Carlo method applying the performance criterias applicable in the terms for the long-term incentive programme and the current share price at grant date.
-
The total IFRS 2 expense does not include subsidy for acquisition and taxes arisen.
IFRS defined performance measures (not alternative performance measures)
Note 9 – Key and alternative performance measures
Key ratios – reconciliation table
| FY 2024 | FY 2023 | 4Q 2024 | 4Q 2023 | |
|---|---|---|---|---|
| Earnings per share, USD | ||||
| Weighted average number of shares | 1,041,865,735 | 1,041,865,735 | 1,041,865,735 | 1,041,865,735 |
| Result for the period | -89,862,997 | 60,065,547 | -122,182,915 | 19,415,561 |
| Earnings per share, USD | -0.09 | 0.06 | -0.12 | 0.02 |
| Diluted earnings per share, USD | ||||
| Diluted weighted average number of shares | 1,041,865,735 | 1,041,865,735 | 1,041,865,735 | 1,041,865,735 |
| Result for the period | -89,862,997 | 60,065,547 | -122,182,915 | 19,415,561 |
| Diluted earnings per share, USD | -0.09 | 0.06 | -0.12 | 0.02 |
Note 10 – Events after the reporting period
VEF's Brazilian holding Gringo has entered into a definitive agreement to be acquired by Sem Parar Instituicao de Pagamento Ltda. As part of the transaction, all existing investors, including VEF, will fully exit their position in Gringo. The transaction is expected to result in net proceeds of USD 15.2 mln for VEF. The transaction is subject to customary closing conditions, including approval from the Brazilian antitrust authority, and is expected to close in the coming months.
Alternative performance measures
Equity ratio
Shareholders' equity in percent in relation to total assets.
Net asset value, USD and SEK
Net value of all assets on the balance sheet, equal to the shareholders' equity.
Net asset value per share, USD and SEK
Net asset value/share is defined as shareholders' equity divided by total number of shares outstanding at the end of the period.
Traded premium/discount to net asset value
Traded premium/discount to NAV is defined as the share price divided to the net asset value/share.
Number of shares outstanding
Total number of outstanding common shares at balance day. Class C shares issued to participants under the Company's LTIP are not treated as outstanding common shares and thus are not included in the calculation, but they are however recognized as an increase in shareholder's equity. Repurchased common shares held in treasury by the Company is neither included in calculation.
Number of shares outstanding fully diluted
When calculating the number of shares outstanding fully diluted, the number of common shares outstanding is adjusted to consider the effects of potential dilutive common shares that have been offered to employees, originating during the reported periods from share-based incentive programs. Dilutions from share-based incentive programs affect the number of shares and only occur when the incentive program performance conditions of the respective programs are fulfilled.
Alternative performance measures – reconciliation tables
| Dec 31, 2024 | Dec 31, 2023 | |
|---|---|---|
| Equity ratio | ||
| Net asset value/shareholders equity, USD | 352,960,944 | 442,229,211 |
| Total assets, USD | 392,661,145 | 482,345,699 |
| Equity ratio | 89.9% | 91.7% |
| Net asset value, USD | 352,960,944 | 442,229,211 |
| Net asset value, SEK | ||
| Net asset value, USD | 352,960,944 | 442,229,211 |
| SEK/USD | 11.00 | 10.04 |
| Net asset value, SEK | 3,881,917,760 | 4,440,676,513 |
| Net asset value/share, USD | ||
| Net asset value, USD | 352,960,944 | 442,229,211 |
| Number of outstanding shares | 1,041,865,735 | 1,041,865,735 |
| Net asset value/share, USD | 0.34 | 0.42 |
| Net asset value/share, SEK | ||
| Net asset value, USD | 352,960,944 | 442,229,211 |
| SEK/USD | 11.00 | 10.04 |
| Net asset value, SEK | 3,881,917,760 | 4,440,676,513 |
| Number of outstanding shares | 1,041,865,735 | 1,041,865,735 |
| Net asset value/share, SEK | 3.73 | 4.26 |
| Premium/discount(–) to NAV | ||
| Net asset value, USD | 352,960,944 | 442,229,211 |
| SEK/USD | 11.00 | 10.04 |
| Net asset value, SEK | 3,881,917,760 | 4,440,676,513 |
| Number of outstanding shares | 1,041,865,735 | 1,041,865,735 |
| Net asset value/share, SEK | 3.73 | 4.26 |
| Share price, SEK | 2.21 | 1.84 |
| Premium/discount(–) to NAV | -40.8% | -56.9% |
Other definitions
Portfolio value Total book value of financial assets held at fair value through profit and loss.
Earnings per share
Result for the period divided with the average number of outstanding common shares. Class C shares issued to participants under the Company's LTIP are not treated as outstanding common shares and thus are not included in the weighted calculation, but they are however recognized as an increase in shareholder's equity. Repurchased common shares held in treasury by the Company is neither included in the calculation.
Diluted earnings per share
When calculating diluted earnings per share, the average number of common shares is adjusted to consider the effects of potential dilutive common shares that have been offered to employees, originating during the reported periods from share-based incentive programs. Dilutions from share-based incentive programs affect the number of shares and only occur when the incentive program performance conditions of the respective programs are fulfilled.
Other information
Upcoming reporting dates
VEF's financial report for the period January 1, 2025–March 31, 2025, will be published on April 16, 2025. VEF's financial report for the period January 1, 2025–June 30, 2025, will be published on July 16, 2025. VEF's financial report for the period January 1, 2025–September 30, 2025, will be published on October 22, 2025. VEF's financial report for the period January 1, 2025–December 31, 2025, will be published on January 21, 2026.
Annual General Meeting and Annual Report 2024
The annual general meeting of VEF is planned to take place on Tuesday, May 13, 2025. The annual report will be available on the Company's website (vef.vc) from March 26, 2025.
January 22, 2025
David Nangle Managing Director
This information is information that VEF AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 2025-01-22 08:00 CET.
For further information, visit vef.vc or contact:
Kim Ståhl CFO
Tel +46 8 545 015 50 Email [email protected]
This report has not been subject to review by the Company's auditors.
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