VNV Global — Interim / Quarterly Report 2020

Apr 29, 2020

Vostok New Ventures Ltd. Financial Report for the First Quarter 2020

Financial Report for the First Quarter 2020

Net asset value (NAV) and financial results for the three-month period

Vostok New Ventures' "VNV" net asset value was USD 731.46 million (mln) on March 31, 2020 (December 31, 2019: 776.98), corresponding to USD 9.36 per share (December 31, 2019: 9.94). Given a SEK/USD exchange rate of 10.08 the NAV was SEK 7,371.02 mln (December 31, 2019: 7,239.24) and SEK 94.32 per share (December 31, 2019: 92.63), respectively.

The group's NAV per share in USD decreased by 5.9%. The portfolio value change is mainly driven by general negative value changes in the entire portfolio, with exception for Babylon and SWVL which showed positive value changes.

Net result for the period was USD -45.67 mln (January 1, 2019–March 31, 2019: -26.58). Earnings per share were USD -0.58 (-0.33).

Key events during the quarter January 1, 2020–March 31, 2020

On February 17, 2020, VNV announced that it had has carried out a subsequent issue of bonds in an amount of SEK 150 million under the framework of its outstanding bond 2019/2022 with ISIN SE0013233541. The total amount outstanding under the Company's bond loan following the subsequent issue is SEK 800 million.

In February 2020, VNV invested an additional USD 7.0 mln in SWVL in connection with a larger funding round.

On March 24, 2020, the Board of Directors determined that the development of the Company's Net Asset Value over the performance measurement period of LTIP 2017, meets the so-called target level. Participants in LTIP 2017 are entitled to receive a total of 330,750 shares in May 2020.

Covid-19 and its impact have resulted in extraordinary volatility in financial markets globally with increased risk premiums. VNV continues to work closely with its portfolio companies to evaluate the financial and operational impact of Covid-19. During the first months of 2020, mobility and travel-related businesses have, as an example, seen a direct negative effect given the significant impact on domestic and international travel across the globe, while businesses in the digital health space currently are seeing unprecedented demand for their services and products.

Share (SDR) info

At the end of the period, the number of outstanding common shares (SDRs), excluding 7,685,303 repurchased SDRs, was 78,150,006. Including the 2,100,000 redeemable common shares issued under the 2019 Long-Term Incentive Program, the total number of outstanding shares amounts to 80,250,006.

Key events after the end of the period

On April 7, 2020, the Company announced that the Board of Directors proposed to change the domicile of the VNV group from Bermuda to Sweden. The Redomestication, which is subject to an SGM on May 12, 2020, is intended to be carried out by way of a Bermuda scheme of arrangement, whereby SDRs in the Company are cancelled and exchanged for shares in a Swedish group entity that, following the Redomestication, will constitute the new parent company of the VNV group.

On April 7, 2020, in the notice to the AGM 2020, the Board of Directors proposed a resolution to change the Company's name to VNV Global Ltd.

The Company will hold a telephone conference with an interactive presentation at 15:00 CEST (09:00 a.m. EDT) Wednesday, April 29. For call-in details, see separate press release issued Wednesday, April 22, at www.vostoknewventures.com.

Management report

Per Brilioth, Managing Director Photo: Tobias Ohls

Sitting here in late April 2020, we are in the midst of this wild Covid-19 storm. Visibility was low when I wrote the intro to the annual report in early April and maybe it is a touch better now but not much. Infection curves in Europe are starting to look a little better, but we do not know how large parts of the populations who have had it, since testing is not widely available or applied. You cannot manage what you cannot measure. A vaccine seems to be a distant thing, second waves could come etc. As much as one reads and would like to understand, we are not experts in this field.

What is certain is that the halting of activity across large parts of the world has made demand collapse, and even if the world starts to recover beyond this second quarter of 2020, global GDP will be down a lot for this year, likely recovering next year but if it comes in the form of a V shaped recovery, or U, or W, or God forbid an L – we don't know. It will depend on second waves of infections, further lockdowns, fiscal policies, monetary policies.

However, global GDP is an all-encompassing measure and within this there are a lot of different dynamics. Global GDP will measure companies that have vulnerable business models and overleveraged balance sheets that will contract, of which many will go under. But it will also include innovative tech-enabled business models that will be subject to different dynamics; some growing even under our current dire circumstances and some that will use this crisis to come out much stronger.

Our portfolio consists of companies with business models that we are convinced will benefit from the changes to society that this virus will generate. The services they sell will become natural parts of daily use in tomorrow's society, clear end easy to see in the space of digital health but also relevant for micro mobility as well as classifieds.

Somehow I am sure we will ask ourselves in a few years; "What?? Why did we actually physically go down to the doctor when we were sick before 2020??" or "Do you remember when there were only cramped tubes and busses to move around the city and nearly no one rode a VOI?". Sort of reminiscent, although in a longer time perspective, of the way my kids today are astonished when I tell them that people used to be allowed to smoke in offices and

restaurants before. Or that we had phones that were stuck to the wall.

In the medium to long term our portfolio provides excellent exposure – I believe outstanding risk-reward investments. In the shorter term our work is all about providing capacity for them and for us to hold on to that long term exposure, which means making sure that each company has enough cash runway to make it through the demand effects of the Covid-19 crisis. Creating longer runway means both reducing burn and making sure that the cash balance is sufficient to fund the path to more visibility. All companies have reduced their cost bases and overall the larger constituents of our portfolio have funding throughout this year and into the early innings of 2021. There are a couple of holdings that were a little sidestepped by the Covid-19 in terms of their funding cycle and will need a little more money in the nearer term, but we have enough liquidity to support our percentage ownership for those.

In the portfolio we have both companies that are subject to strong demand growth because of the crisis (mainly our health exposure with Babylon Health in the lead) and companies that are subject to air pockets of demand loss like our mobility plays.

NAV

We moved basically our entire portfolio to a model-based valuation when calculating our NAV as per March 31, 2020. On a general note, we see 2020 as a lost year and forecast that 2021 will assume the financial characteristics of 2020 that we had expected before the pandemic. We apply the multiples of the most relevant listed peer group that we can find and in this way come up with a new mark. Naturally, we adjust for any capital raisings that will have to take place.

The outcome on an aggregate level is a decrease in the NAV of some 6% compared to the value as of December 31, 2019, although an uptick of some 24% when compared to the same point of time last year. Behind this somewhat modest change in NAV there are some larger moving parts. Babylon is up some 31% whilst BlaBlaCar

is down some 24%, alongside negative valuation developments at the majority of the rest of the portfolio.

Babylon is maybe one of the companies most positively affected by the Covid-19 situation, in the world. Broad access to healthcare is maybe the most important topic in the world right now. It will be an enormous focus area for years to come for everyone: people, companies and states. This can only be delivered through digital access leveraged by AI. Simple video conferencing helps in many ways, but Babylon's AI focused product is an obvious winner in so many ways beyond that.

Also, the listed peer group for Babylon has risen in value, bring benchmark multiples higher, anticipating higher growth due to this expected future demand increase. The peer group with the likes of Teladoc, sell digital health products, but it feels safe to say that they lag Babylon in terms of the sophistication of their offerings.

On the mobility side, BlaBlaCar and VOI are subject to a drop in demand when countries and cities are under lockdown. In many European countries, people are simply not allowed to move about at all. Thankfully, this will of course at some point change. And when this changes we believe it is clear that people will prefer to travel by BlaBlaCar or VOI rather than in traditional ways. For example, travel in the confined and controllable space of a car with three other passengers will be preferred to a bus with 60 or so passengers whom you don't know much about. And it will be preferable to travel by e-scooter in a city rather than on a cramped tube or bus.

BlaBlaCar and VOI are also well-funded, especially relative to competition, making us confident that even though the market is very small now and arguably smaller as we go through a gradual recovery phase, they will both enjoy larger shares of that pie as some of their competition may not be coming back post Covid-19.

But still when trying to price this in the midst of the crisis also at a time when peer multiples (ride hailing, classifieds, online delivery companies) are trading lower, the marks compared to the end of last year will be lower. BlaBlaCar carries a mark which is 24% lower and VOI 16% lower.

Moving to Sweden

As you may have noticed, we are proposing to move the company to Sweden. We have been in Bermuda since 1996, but now feels like the right time to move onshore. Sweden seems a natural place for the company's headquarters as the management is resident there and the company's shares have been listed in Stockholm since 1997. The main effects of this change are a more efficient and transparent governance process, enabling management to focus more on our investments and less on intergroup transactions. Assuming the move is approved by shareholders at a Special Meeting to be held immediately after the AGM on May 12, the process looks to be completed by end June.

Goodbye Vostok. Hello VNV Global.

With this quarterly report we have introduced our new digital identity. At our AGM on May 12, 2020, we will also vote on changing the name to VNV Global, giving up the historic Vostok name but still keeping a connection to our history with the VNV abbreviation. The Vostok name gives an impression that we have a Russia-heavy portfolio or are predominantly focused on deploying in that region, but that does not reflect the true state of our business. The intention is that our new name should better reflect what we are – a global investor.

With the sale of Avito last year, we entered a new chapter of our history. We went from having 65% of NAV in Russia in the beginning of 2019 to only 5.4% of NAV in Russian businesses at the end of the first quarter 2020. Overall, about 87% of our NAV is now in Western markets, and most of our deal flow is there as well – and has been for some time. The NAV increase of 30% during 2019 is almost exclusively driven by our investments in these developed markets. Our fastest growing company has been VOI, a Swedish mobility company. The largest asset by NAV is Babylon, a British digital health company with a global footprint.

While Russia from a portfolio perspective will not have the same significance as in the past, we remain a respectable foreign partner for the most attractive companies there and continue to see strong deal flow.

What we are undergoing is just natural evolution, as we are an opportunistic investor seeking the most attractive deals, across investment stages, sectors and geographic markets. We have done this successfully once in the past, when we transitioned from old Vostok Nafta to Vostok New Ventures. This is simply our latest iteration.

That said, I would like to emphasize that the core of VNV will continue to be the same. We will continue to invest in companies with the potential of exceptional barriers to entry – such as network effects – and we will maintain our opportunistic approach investing from early to late stage. We will also continue to invest in emerging markets – it is an important part of our strategy. Who knows, maybe one day our largest asset will turn out to be in these regions again? In conclusion – we are a multisector, multi-stage global investor.

And so, the next time we interact, we will be a Swedish company called VNV Global. As part of this process, we have taken the opportunity to explore ways to further strengthen our platform. We have several interesting initiatives which we look forward to announce – the one closest in time should further strengthen our strong track record of investing in early stage.

I want all our existing and new shareholders to be proud of not just buying into our current portfolio, but also into our investing platform and all the future deals that will be generated from it.

In fact, the more recent investments we have made have generated a NAV gain in absolute terms with greater momentum than our historically most successful investment Avito: Babylon and VOI have alone generated ~34% of the gain made there but in just ~3 years.

In summary VNV Global is:

• Exposure to high-barriers-to-entry business models
• Permanent capital
• Long-term
• Multi stage
• Multi sector
• Global mandate
• Flexible
• Swedish incorporated and listed
• 20 year plus track record

We are super-pumped up on our current portfolio which we believe provides a very interesting upside and about VNV Global as a platform for new deals.

Per Brilioth Managing Director

Investment portfolio The Vostok New Ventures investment portfolio /March 31, 2020/

Category Mobility 46.0%		Category Digital Health 34.1%		Category Classifieds 14.8%		Category Other 5.2%
Company		Company		Company		Company
BlaBlaCar	19.6%	Babylon	32.3%	Property Finder	4.9%	Cash and cash equivalents	3.1%
VOI	10.6%	Numan	0.5%	Hemnet	2.4%	Liquidity management	1.6%
Gett	8.8%	Vezeeta	0.5%	Booksy	1.3%	YouScan	0.4%
SWVL	3.0%	Grace Health	0.3%	Housing Anywhere	1.1%	Marley Spoon	0.1%
OneTwoTrip	1.9%	DOC+	0.3%	Monopoliya	0.9%
Dostavista	1.4%	Yoppie	0.2%	El Basharsoft	0.8%
Shohoz	0.7%			Merro	0.8%
Napopravku	0.0%			Wallapop	0.6%
				Inturn	0.6%
				JamesEdition	0.4%
				Naseeb Networks	0.4%
				Agente Imóvel	0.2%
				Shwe Property	0.2%
				Dubicars	0.1%

JobNet 0.1%

Portfolio structure — Net Asset Value

Category	Company	Fair value, USD thousand,	Percentage weight	Share of total shares	Fair value, USD thousand,	Valuation change per	Valuation
		Mar 31, 2020		outstanding	Dec 31, 2019	share (USD), 2020	method
Digital Health	Babylon	262,477,559	32.3%	10.8	200,000,050	31%	Revenue multiple
Mobility	BlaBlaCar	159,237,195	19.6%	8.7	209,453,900	-24%	Revenue multiple
Mobility	VOI	85,915,503	10.6%	32.7	102,433,773	-16%	Revenue multiple
Mobility	Gett	71,272,036	8.8%	5.3	74,853,327	-5%	Revenue multiple
Classifieds	Property Finder	39,641,596	4.9%	9.5	47,883,261	-17%	Revenue multiple
Mobility	SWVL	24,425,425	3.0%	12.6	16,001,533	15%	Revenue multiple
Classifieds	Hemnet1	19,225,026	2.4%	6.0	25,845,449	-26%	EBITDA multiple
Mobility	OneTwoTrip	15,151,050	1.9%	21.1	28,652,539	-47%	Revenue multiple
Mobility	Dostavista	11,462,377	1.4%	15.9	11,561,199	-1%	Revenue multiple
Classifieds	Booksy	10,817,669	1.3%	11.8	12,931,128	-16%	Revenue multiple
Classifieds	Housing Anywhere	8,677,761	1.1%	29.4	6,365,877	-6%	Revenue multiple
Classifieds	Monopoliya	7,608,738	0.9%	9.1	9,371,881	-19%	Revenue multiple
Classifieds	El Basharsoft (Wuzzuf and Forasna)	6,769,004	0.8%	23.7	8,629,891	-22%	Revenue multiple
Classifieds	Merro	6,326,937	0.8%	22.6	7,652,180	-17%	Mixed
Mobility	Shohoz	6,072,745	0.7%	15.5	7,003,759	-13%	Revenue multiple
Classifieds	Wallapop	5,208,868	0.6%	2.4	7,347,479	-29%	Revenue multiple
Digital Health	Numan	4,380,169	0.5%	21.2	1,064,011	37%	Latest transaction
Digital Health	Vezeeta	4,369,311	0.5%	4.7	3,155,946	38%	Latest transaction
Classifieds	JamesEdition	3,299,400	0.4%	27.6	3,359,400	-2%	Latest transaction
Other	YouScan2	3,294,675	0.4%	20.9	3,867,104	-15%	Revenue multiple
Classifieds	Naseeb Networks (Rozee and Mihnati)	2,944,580	0.4%	24.3	3,528,084	-17%	Revenue multiple
Digital Health	Grace Health	2,240,753	0.3%	23.0	1,073,245	16%	Latest transaction
Digital Health	DOC+	2,040,559	0.3%	26.7	3,556,442	-43%	Revenue multiple
Classifieds	Agente Imóvel	1,566,223	0.2%	27.3	2,800,227	-44%	Revenue multiple
Digital Health	Yoppie	1,480,920	0.2%	37.0	1,480,920	–	Latest transaction
Classifieds	Shwe Property	1,435,278	0.2%	11.7	1,435,278	–	Latest transaction
Classifieds	Dubicars	1,055,794	0.1%	9.9	508,320	29%	Latest transaction
Classifieds	JobNet	600,645	0.1%	3.8	718,796	-16%	Revenue multiple
Other	Marley Spoon	511,735	0.1%	0.6	168,334	204%	Listed company
Classifieds	CarZar	–	–	–	451,287	–	Model valuation
Classifieds	Inturn, convertible debt	5,137,500	0.6%		5,061,667	1%	Convertible
Mobility	Napopravku, convertible debt	352,397	0.0%		–	1%	Convertible
Classifieds	Naseeb Networks, convertible debt	216,722	0.0%		211,667	2%	Convertible
Digital Health	Numan, convertible debt	–	–		1,332,192	–	Convertible
Classifieds	Housing Anywhere, convertible debt	–	–		561,587	–	Convertible
Other	Liquidity management	13,363,903	1.6%		20,660,133
	Investment portfolio	788,580,053	96.9%		830,981,866
Other	Cash and cash equivalents	25,180,952	3.1%		18,854,616
	Total investment portfolio	813,761,005	100.0%		849,836,482
	Borrowings	-78,341,519			-68,582,281
	Other net receivables/liabilities	-3,957,454			-4,270,419
	Total NAV	731,462,032			776,983,782

1. Indirect holding through YSaphis S.A. and Sprints Capital Rob R Partners S.A.

2. Reflects VNV's indirect shareholding in YouScan through a 33.2% holding in Kontakt East Holding AB, which owns 63% of YouScan.

Financial information

Group – results for the first quarter and net asset value

During the first quarter 2020, the result from financial assets at fair value through profit or loss amounted to USD -47.84 mln (2019: 0.20) related to general negative value changes in the entire portfolio, with exception for Babylon and SWVL which showed positive value changes. Dividend and coupon income was USD 0.12 mln related to Merro dividends (2019: 2.22 related to Merro dividends).

Net operating expenses (defined as operating expenses less other operating income) amounted to USD -1.50 mln (2019: -20.83). Last year's increase in net operating expenses is mainly related to one-time extraordinary bonus following the successful exit of Avito.

Net financial items were USD 3.56 mln (2019: -8.18), mainly related to SEK/USD depreciation.

Net result for the period was USD -45.67 mln (2019: -26.58).

Total shareholders' equity amounted to USD 731.46 mln on March 31, 2020 (December 31, 2019: 776.98). Repurchased SDRs were unchanged during the threemonth period, amounting to 7,685,303 SDRs.

Cash and cash equivalents of the group amounted to USD 25.18 mln (December 31, 2019: 18.86). The liquid asset investments, USD 13.36 mln (2019: 20.66), are in money market funds, as part of its liquidity management operations.

Liquid assets

Covid-19 impact on the investment portfolio

During the first months of 2020, Covid-19 and its impact have resulted in extraordinary volatility in financial markets globally with increased risk premiums. VNV continues to work closely with its portfolio companies to evaluate the financial and operational impact of Covid-19 both in a short- and longer-term perspective. Given the current uncertainty and lack of visibility on a macro level, VNV also closely monitors the Group's financial position including the terms of outstanding debt as well as potential capital needs across its portfolio companies. The direct impact of Covid-19 to date differs from company to company. During the first months of 2020, mobility and travel-related businesses have, as an example, seen a direct negative effect given the significant impact on domestic and international travel (both ground and air) across the globe, while businesses in the digital health space currently are seeing unprecedented demand for their services and products.

Portfolio events

Investment activities during the first quarter

During the first quarter 2020, net investments in financial assets, excluding liquidity management investments, were USD 12.36 mln (2019: 19.65) and proceeds from sales, excluding liquidity management investments, were USD – mln (2019: 539.87).

Current portfolio

During the first quarter of 2020, global markets have seen significant volatility on the back of the global outbreak of Covid-19, and everyday life in most cities and countries has been disrupted due to the virus and related actions taken by governments to prevent further spread. VNV's portfolio companies, to various degrees, have seen direct and indirect effects on their operations due to Covid-19.

Babylon

During the first quarter, Babylon has continued to expand its services in the US and also seen increasing demand of their services on the back of Covid-19.

During the first quarter 2020, Babylon delivered

11.7k daily consultations, up 70% yoy.

Babylon launched a Covid-19 Care Assistant product on March 23, 2020, for their users in the UK. This service delivers appropriate information and care for each individual according to their needs, supporting the patient throughout the different stages of their illness and allocating doctors' time to the patients who need it the most.

During the first quarter, Babylon also signed a 10-year contract with the government of Rwanda to grant free access to digital services for all citizens in the country over the age of 12.

During the first quarter, the Royal Wolverhampton NHS Trust and Babylon announced a 10-year partnership to deliver joined-up care to the entire population of the city of Wolverhampton and to create the world's first integrated digital health system to serve the city's population.

The Covid-19 outbreak has increased the demand for Babylon's services which is positive for the company's development and valuation. This is evident when the company's peers, such as Teladoc, also have increased in value during the period.

BlaBlaCar

Due to the different measures governments across Europe have introduced to limit the spread of Covid-19, BlaBlaCar has seen direct negative effects on the activity on their platform. In March, BlaBlaCar temporarily suspended all bus operations, on the back of this situation and is expected to resume operations as soon as practically. BlaBlaCar's main ride-sharing business is still operating, but given the current measures in place across Europe, activity has been lower than expected. BlaBlaCar has a strong financial position and has also taken well balanced decisions during these volatile times, which will allow them reaccelerate growth when markets open up again.

BlaBlaCar ended the first quarter with 93.2 mln members. During the first quarter of 2020 BlaBlaCar noted 18.3 mln passengers, which is a 34.7% increase on the same quarter in 2019.

During April 2020, BlaBlaCar launched BlaBlaHelp, an app to connect helpers and help-seekers together in the context of the Covid-19 crisis. The new app saw more than 10k volunteers registered in less than 24 hours post launch.

VOI

Similar to BlaBlaCar, VOI has seen direct negative impact from of Covid-19 and the different measures governments across Europe have introduced to limit the spread of the virus. The company temporarily paused operations in most cities outside the Nordics in mid-March. VOI, which is well capitalized following its funding round of October 2019, has also taken further measures to preserve cash in this special situation and will be ready to reaccelerate growth as soon as practically possible as the market opens up.

Gett

During the first quarter, Gett has also seen direct negative effects of Covid-19 but was able to deliver according to their pre-Covid-19 budget.

Gett's strong performance during the first quarter, despite Covid-19, is mainly driven by their unique business model of focusing on being the SaaS booking platform for ground transportation for Corporates.

While ride-hailing companies' demand declined by 75–90% in the B2C segment towards the end of the first quarter, the corporate rides which is the core business of Gett was more resilient at just a 50% decline on average during lockdowns. Its B2B delivery business, on the other hand, has seen strong growth at the same time, which offsets some of the negative impacts. Hence there is just a minor 5% negative valuation change of Gett.

SWVL

SWVL raised a larger funding round in February 2020 pre Covid-19, where VNV participated with USD 7.0 mln. SWVL's management has swiftly adapted the business to the new reality with less activity temporarily, although the markets SWVL operates in lags western Europe in terms of Covid-19 related measures.

New investments during the first quarter

VNV did not complete any significant investments in new names during the first quarter 2020.

Liquidity management

The Company also has investments in money market funds, as part of its liquidity management operations. As per March 31, 2020, the liquidity management investments are valued at USD 13.36 mln (2019: 42.32), based on the latest NAV of each fund and bond's market value.

Income statements Group

Operating result	-49,222	-18,400
Operating expenses	-1,583	-20,902
Other operating income	82	77
Dividend and coupon income	122	2,221
Result from financial assets at fair value through profit or loss¹	-47,843	204
/Expressed in USD thousands/	Jan 1, 2020– Mar 31, 2020	Jan 1, 2019– Mar 31, 2019

Financial income and expenses

Interest income	4	22
Interest expense	-885	-3,986
Currency exchange gains/losses, net	4,438	-4,212
Net financial items	3,557	-8,177
Result before tax	-45,665	-26,576
Taxation	–	–
Net result for the financial period	-45,665	-26,576
Earnings per share (in USD)	-0.58	-0.33
Diluted earnings per share (in USD)	-0.58	-0.33

1 Financial assets at fair value through profit or loss (including listed bonds) are carried at fair value. Gains or losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are presented in the income statement within 'Result from financial assets at fair value through profit or loss' in the period in which they arise.

Statement of comprehensive income

/Expressed in USD thousands/	Jan 1, 2020– Mar 31, 2020	Jan 1, 2019– Mar 31, 2019
Net result for the financial period	-45,665	-26,576

Other comprehensive income for the period

Items that may be classified subsequently to profit or loss:

Currency translation differences	-113	-42
Total other comprehensive income for the period	-113	-42
Total comprehensive income for the period	-45,778	-26,618

Total comprehensive income for the periods above is entirely attributable to the equity holders of the parent company.

Balance sheet Group

/Expressed in USD thousands/	Mar 31, 2020	Dec 31, 2019
Non-current assets
Tangible non-current assets
Property, plant and equipment	920	1,080
Total tangible non-current assets	920	1,080
Financial non-current assets
Financial assets at fair value through profit or loss	788,580	830,982
Total financial non-current assets	788,580	830,982
Current assets
Cash and cash equivalents	25,181	18,855
Tax receivables	531	523
Other current receivables	476	428
Total current assets	26,188	19,806
Total assets	815,688	851,868

/Expressed in USD thousands/	Mar 31, 2020	Dec 31, 2019
Shareholders' equity
(including net result for the financial period)	731,462	776,984
Non-current liabilities
Interest bearing liabilities
Long-term debts and leasing liabilities	78,871	69,233
Total non-current liabilities	78,871	69,233
Current liabilities
Non-interest bearing current liabilities
Tax payables	432	437
Other current liabilities	1,424	1,503
Accrued expenses	3,499	3,711
Total current liabilities	5,355	5,651
Total shareholders' equity and liabilities	815,688	851,868

Statement of Changes in Equity Group

/Expressed in USD thousands/	Note	Share capital	Additional paid in capital	Other reserves	Retained earnings	Total
Balance at January 1, 2019		27,060	120,829	-173	728,994	876,709
Net result for the period January 1, 2019 to March 31, 2019		–	–	–	-26,576	-26,576
Other comprehensive income for the period
Currency translation differences		–	–	-42	–	-42
Total comprehensive income for the period January 1, 2019 to March 31, 2019		–	–	-42	-26,576	-26,618
Transactions with owners:
Redemption program		-6,479	–	–	-208,829	-215,308
Value of employee services:
- Share-based remuneration		–	3,200	–	–	3,200
- Share-based long-term incentive program		–	378	–	–	378
Buy-back of own shares		-2,042	-51,450	–	–	-53,491
Total transactions with owners		-8,521	-47,872	–	-208,829	-265,222
Balance at March 31, 2019		18,539	72,957	-215	493,589	584,869
Balance at January 1, 2020		19,260	74,102	-218	683,840	776,984
Net result for the period January 1, 2020 to March 31, 2020		–	–	–	-45,665	-45,665
Other comprehensive income for the period
Currency translation differences		–	–	-113	–	-113
Total comprehensive income for the period January 1, 2020 to March 31, 2020		–	–	-113	-45,665	-45,778
Transactions with owners:
Value of employee services:
- Share-based long-term incentive program	5	–	256	–	–	256

Total transactions with owners – 256 – – 256 Balance at March 31, 2020 19,260 74,358 -331 638,175 731,462

11

Cash flow statements Group

/Expressed in USD thousands/	Jan 1, 2020– Mar 31, 2020	Jan 1, 2019– Mar 31, 2019
Operating activites
Result before tax	-45,665	-26,576
Adjustment for:
Interest income	-4	-22
Interest expense	885	3,986
Currency exchange gains/-losses	-4,438	4,212
Depreciation	82	78
Result from financial assets at fair value through profit or loss	47,843	-204
Dividend and coupon income	-122	-2,221
Other non-cash adjustments	144	19,259
Change in current receivables	-66	136
Change in current liabilities	-247	455
Net cash used in operating activities	-1,588	-897
Investments in financial assets	-12,825	-60,056
Sales of financial assets	7,384	539,874
Dividend and coupon income	122	2,221
Tax paid	–	33
Net cash flow from/used in operating activities	-6,907	481,175
Investment activities
Net cash flow used in investment activities	–	–
Financing activities
Proceeds from borrowings	15,551	–
Repayment of borrowings	–	-91,205
Interest paid for borrowings	-1,026	-3,113
Repayment of lease liabilities	-84	–
Redemption program including transaction fees	–	-215,308
Buy back of own shares	–	-53,491
Net cash flow used in/from financing activities	14,441	-363,117
Change in cash and cash equivalents	7,534	118,057
Cash and cash equivalents at beginning of the period	18,855	40,303
Exchange gains/losses on cash and cash equivalents	-1,208	-7,984
Cash and cash equivalents at end of period	25,181	150,377

Alternative Performance Measures Group

3m 2020 3m 2019

	-3.92
	96.43
	7.57
	-0.33
	-0.33
	7.57
	10.27
	81,019,872
	81,877,125
78,150,006	77,246,256
	-5.62 89.67 9.36 -0.58 -0.58 9.36 12.69 78,150,006 78,480,756

1. Return on capital employed is defined as the Group's result for the period plus interest expenses plus/less exchange differences on financial loans divided by the average capital employed (the average total assets less non-interest bearing liabilities over the period). Return on capital employed is not annualised.

2. 1. Equity ratio is defined as shareholders' equity in relation to total assets.
3. 1. Shareholders' equity/share is defined as shareholders' equity divided by total number of outstanding common shares, ie. plan shares is excluded.
4. 1. Net asset value/share is defined as shareholders' equity divided by total number of common shares.
5. 1. Net asset value/share adjusted for the February 2019 split and redemption program is defined as equity increased by an amount corresponding to the redemption amount increased by the development in equity since the redemption date, divided by total number of outstanding common shares.
6. 1. Refers only to ordinary common shares and excludes redemption shares and redeemable common shares.
7. 1. The number of common shares at balance sheet date as per March 31, 2020, excludes 7,685,303 repurchased SDRs and the 2,100,000 redeemable common shares issued under the 2019 Long-Term Incentive Program.

Alternative Performance Measures (APM) apply the European Securities and Markets Authority (ESMA) guidelines.

APMs are financial measures other than financial measures defined or specified by International Financial Reporting Standards (IFRS).

VNV 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.

Definitions of all APMs used are found on the left-hand side of the page.

Income statement Parent

5,378	-8,194
4,409	-4,233
-871	-3,967
1,840	6
	79,411
-1,510	-20,663
–	100,000
-378	74
Jan 1, 2020– Mar 31, 2020	Jan 1, 2019– Mar 31, 2019
	-1,888

Statement of comprehensive income

/Expressed in USD thousands/	Jan 1, 2020– Mar 31, 2020	Jan 1, 2019– Mar 31, 2019
Net result for the financial period	3,490	71,217
Other comprehensive income for the period

Items that may be classified subsequently to profit or loss:

Currency translation differences	–	–
Total other comprehensive income for the period	–	–
Total comprehensive income for the period	3,490	71,217

Balance sheet Parent

/Expressed in USD thousands/	Mar 31, 2020	Dec 31, 2019
Non-current assets
Financial non-current assets
Shares in subsidiaries	185	185
Financial assets at fair value through profit or loss	13,364	20,660
Receivables from Group companies	127,037	115,755
Total financial non-current assets	140,586	136,600
Current assets
Cash and cash equivalents	25,035	15,810
Other current receivables	324	351
Total current assets	25,359	16,161
Total assets	165,945	152,761

/Expressed in USD thousands/	Mar 31, 2020	Dec 31, 2019
Shareholders' equity
(including net result for the financial period)	82,994	79,248
Non-current liabilities
Interest bearing liabilities
Long-term debts	78,342	68,582
Total non-current liabilities	78,342	68,582
Current liabilities
Non-interest bearing current liabilities
Liabilities to Group companies	1,190	1,145
Other current liabilities	153	315
Accrued expenses	3,266	3,471
Total current liabilities	4,609	4,931
Total shareholders' equity and liabilities	165,945	152,761

Statement of Changes in Equity Parent

/Expressed in USD thousands/	Note	Share capital	Additional paid in capital	Retained earnings	Total
Balance at January 1, 2019		27,060	120,829	133,518	281,406
Net result for the period January 1, 2019 to March 31, 2019		–	–	71,217	71,217
Other comprehensive income for the period
Currency translation differences		–	–	–	–
Total comprehensive income for the period January 1, 2019 to March 31, 2019		–	–	71,217	71,217
Transactions with owners:
Redemption program		-6,479	–	-208,829	-215,308
Value of employee services:
- Share-based remuneration		–	3,200	–	3,200
- Share-based long-term incentive program		–	378	–	378
Buy-back of own shares		-2,042	-51,450	–	-53,491
Total transactions with owners		-8,521	-47,872	-208,829	-265,222
Balance at March 31, 2019		18,539	72,957	-4,094	87,402
Balance at January 1, 2020		19,260	74,102	-14,114	79,248
Net result for the period January 1, 2020 to March 31, 2020		–	–	3,490	3,490
Other comprehensive income for the period
Currency translation differences		–	–	–	–
Total comprehensive income for the period January 1, 2020 to March 31, 2020		–	–	3,490	3,490
Transactions with owners:

Value of employee services:

- Share-based long-term incentive program	5	–	256	–	256
Total transactions with owners		–	256	–	256
Balance at March 31, 2020		19,260	74,358	-10,624	82,994

Notes to the financial statements

⁄ Expressed in USD thousand unless indicated otherwise ⁄

Note 1

Accounting principles

This consolidated interim report is prepared in accordance with IAS 34 Interim Financial Reporting. The accounting policies that have been applied for the Group and Parent Company, are in agreement with the accounting policies used in preparation of the Company's 2019 annual report. The Company's 2019 annual report is available at the Company's website: www.vostoknewventures.com/investor-relations/financial-reports/

When calculating earnings per share, the average number of shares is based on average outstanding common shares, so called Swedish Depository Receipts (SDRs). Plan shares, issued to incentive share program participants, are not treated as outstanding common shares and by that not included in the weighted calculation. The issue of plan shares is recognized as an increase in shareholders' equity, although.

When calculating diluted earnings per share, the average number of common shares (SDRs) is adjusted to consider the effects of dilutive potential common shares, originating during the reported periods from share incentive programs that have been offered to employees. Dilutions from share incentive programs affect the number of shares and only occur when the strike price is less than the share price or incentive program performance conditions are fulfilled.

Note 2 Related party transactions

During the period, VNV has recognized the following related party transactions:

	3m 2020	Operating expenses 3m 2019	Current liabilities 3m 2020 3m 2019
Key management and Board of Directors 1	-579	-16,226	-162	-145

1 Compensation paid or payable includes salary and accrued bonus to the management and remuneration to the Board members.

The Company has entered into agreements with Keith Richman, Victoria Grace and Josh Blachman, all Directors of VNV, for consultancy services above and beyond their duties as Directors in the Company in relation to current or prospective investments. The gross annual cost per contract is USD 0.1 mln.

The costs for the long-term incentive programs (LTIP 2018 and LTIP 2019) for the management amounted to USD 0.2 mln, excluding social taxes, during the three-month period 2020. See details of LTIP 2017, LTIP 2018 and LTIP 2019 in Note 5.

Note 3 Fair value estimation

The numbers below are based on the same accounting and valuation policies as used in the Company's most recent Annual Report. For more information regarding financial instruments in level 2 and 3 see note 3 in the Company's Annual Report 2019. The fair value of financial instruments is measured by level of the following fair value measurement hierarchy:

— Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).

— Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).

— Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The following table presents the group's assets that are measured at fair value at March 31, 2020.

	Level 1	Level 2	Level 3	Total balance
Financial assets at fair value through profit or loss	13,876	23,968	750,736	788,580
Total assets	13,876	23,968	750,736	788,580

The following table presents the group's assets that are measured at fair value at December 31, 2019.

	Level 1	Level 2	Level 3	Total balance
Financial assets at fair value through profit or loss	20,828	384,914	425,240	830,982
Total assets	20,828	384,914	425,240	830,982

The following table presents the group's changes of financial assets in level 3.

	Level 3
Opening balance January 1, 2020	425,240
Transfers from level 3	-466
Transfers to level 3	375,986
Change in fair value and other	-50,023
Closing balance March 31, 2020	750,736

During the first quarter 2020, Babylon, VOI, SWVL, Dostavista, Booksy, Housing Anywhere, Monopoliya and Shohoz have been transferred from level 2 to level 3. The investments in Numan, Vezeeta, JamesEdition, Grace Health, Yoppie, Shwe Property and Dubicars are classified as level 2 as the valuations are based on the price paid in each respective transaction.

Babylon, BlaBlaCar, VOI, Gett, Property Finder, SWVL, Hemnet, OneTwoTrip, Dostavista, Booksy, Housing Anywhere, Monopoliya, El Basharsoft, Merro, Shohoz, Wallapop, YouScan, Naseeb Networks, DOC+, Agente Imóvel and JobNet are classified as level 3 investments. The level 3 investments are either based on valuation models, usually using EBITDA and revenue multiples of comparable listed peers or transactions that include more uncertainty given the time elapsed since it closed or structure of the transactions.

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 group, 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 fair value 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. Usually, transaction-based valuations are kept unchanged for a period of 12 months unless there is cause for a significant change in valuation. After 12 months, the Group usually derives fair value for non-traded assets 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. No significant events in the portfolio companies, which have had an impact on the valuations, has occurred since the latest transactions except as described below. The transaction-based valuations are also frequently assessed using multiples of comparable traded companies for each unlisted investment or other valuation models when warranted.

VNV follows a structured process in assessing the valuation of its unlisted investments. VNV evaluates company specific and external data relating to each specific investment on a monthly basis. The data is then assessed at monthly and 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 approved by the Board of Directors in connection with the Company's financial reports.

Babylon

As per March 31, 2020, VNV values its 10.8% ownership in Babylon, based on a forward-looking EV/Revenue model, at USD 262.5 mln. VNV has invested USD 92.6 mln in the company and it is classified as a level 3 investment. The EV/Revenue model reflects better fair value of the company on the back of Covid-19 during 1Q20 than valuation based on latest transaction used in December 31, 2019. On the back of Covid-19 the company has seen higher demand of its services and signed a number of new deals and expanded existing contracts during the first quarter.

The peer group includes eight digital health companies including Livongo, Teladoc, PA Good Doctor, to name a few. The median multiple of the peer group is 6.3x.

BlaBlaCar

As per March 31, 2020, VNV values its 8.7% ownership in BlaBlaCar, based on a forward-looking EV/Revenue model, at USD 159.2 mln. VNV has invested USD 122.4 mln in the company and it is classified as a level 3 investment. The model looks at EV/Revenue multiples for a peer group including high margin marketplace businesses such as Rightmove, REA Group, Info Edge, to name a few that has been adjusted to better reflect BlaBlaCar's business model which comprise of both a high margin C2C market place and lower margin bus operations. The model has also been adjusted to reflect the direct negative impact of Covid-19 expected on the back of Covid-19. Short-term impacts includes suspend bus operations across Europe because of city and nation-wide lockdowns. The unadjusted median multiple of the peer group is 10.6x.

VOI

As per March 31, 2020, VNV values VOI based on a forward-looking EV/ Revenue model at USD 85.9 mln. VNV has invested USD 60.8 mln in VOI Technology, the leading European free-floating electric scooter sharing service and owns 32.7% of the company on a fully diluted basis and classified as a level 3 investment. The EV/Revenue model is used in 1Q20 to reflect fair value better due to the situation of Covid-19 than the valuation based on latest transaction used in 4Q19. Despite Covid-19, which has negatively impacted VOI's operations in the short term, with suspended operations in cities where there is a full lockdown. The company's long-term potential remains intact due to VOI's strong balance sheet and its position to reaccelerate as soon as practically possible.

The peer group includes five listed mobility and delivery companies and the median multiple of the peer group is 2.2x.

Gett

As per March 31, 2020, VNV values Gett based on a forward-looking revenue multiple-based valuation at USD 71.3 mln. VNV owns 5.28% of Gett on a fully diluted basis and believes that the revenue multiple valuations accounting for the company's preference structure is the best fair value estimate. The company is classified as a level 3 investment. Compared to the company's listed peers Uber and Lyft, Gett became operationally profitable globally in December last year and has grown since then. It is on track to become cashflow positive despite Covid-19 impacts.

Property Finder

As per March 31, 2020, VNV values Property Finder at USD 39.6 mln based on a forward-looking revenue multiple-based valuation, classified as a level 3 investment. VNV owns 9.5% of Property Finder on a fully diluted basis and believes that the revenue multiple valuation is the best fair value estimate. The median multiple of the listed peer group is 8.0x.

SWVL

As per March 31, 2020, SWVL is valued at USD 24.4 mln and is classified as a level 3 investment based on a forward-looking EV/revenue valuation model, although the latest transaction was in February 2020 where VNV invested USD 7 mln. The EV/Revenue valuation model looks at expected revenue, adjusted for Covid-19 related impacts, and the peer group consists of listed mobility and delivery business where the median multiple of the peer group is 2.2x.

Hemnet (through YSaphis S.A. and Sprints Capital Rob R Partners S.A.)

As per March 31, 2020, Hemnet is valued at USD 19.2 mln and is classified as a level 3 investment, based on a forward-looking EV/EBITDA valuation model. EV/EBITDA is used as Hemnet is a mature and profitable company compared to many other portfolio investments that have not reached profitability yet. The peer group's median multiple is 19.5x.

OneTwoTrip

As per March 31, 2020, OneTwoTrip is classified as a level 3 investment based on a forward-looking peer multiples model, valued at USD 15.2 mln. VNV owns 21.1% of the company on a fully diluted basis. Current global travel restrictions, RUB weakness to USD and lower oil prices negatively impact the company, thereof the peer multiples model valuation. The median multiple of the peer group is 1.1x.

Dostavista

As per March 31, 2020, Dostavista is valued at USD 11.5 mln and is classified as a level 3 investment based on a forward-looking EV/revenue valuation model, although the latest transaction was in 2Q19. The company has been developing according to plan since closing of the transaction and seen accelerating activity on the back of Covid-19 during 1Q20. This positive development is offset by a depreciating RUB. The peer group's median multiple is 2.2x.

Booksy

As per March 31, 2020, Booksy is valued at USD 10.8 mln and is classified as a level 3 investment based on a forward-looking EV/Revenue valuation model, although the latest transaction was in 2Q19. The EV/Revenue model is using a broad classifieds peer group given the similarities in those business models with Booksy's very niched approach for one vertical. The same network effects characteristics and margins dynamics should apply at maturity. The peer group's median multiple is 5.0x.

Housing Anywhere

As per March 31, 2020, Housing Anywhere is valued at USD 8.7 mln and classified as a level 3 investment based on a forward-looking EV/Revenue multiples model, although the latest transaction was in 1Q20 where VNV invested USD 3.3 mln. The company is developing well but due to higher risk-premium and to current volatility, the model-based valuation is 11% lower than the recent transaction in the company. The peer group's median multiple is 5.0x.

Monopoliya

As per March 31, 2020, Monopoliya is valued at USD 7.6 mln and is classified as a level 3 investment based on an fx-adjusted transaction-based valuation. VNV invested USD 9.4 mln for 9.1% ownership in the company during 4Q19. The company has not seen any or expect to see any negative impact from Covid-19. However, given the RUB depreciation on the back of a low oil price VNV has as per March 31, 2020, FX adjusted the transaction-based valuation which is deemed to be the best fair value estimate as per end of 1Q20.

El Basharsoft

As per March 31, 2020, El Basharsoft is valued at USD 6.8 mln and is classified as a level 3 investment based on an EV/Revenue valuation model. The peer group's median multiple is 6.0x.

Merro

As per March 31, 2020, Merro is valued at USD 6.3 mln and classified as a level 3 investment based on a Sum of the Parts valuation model. The peer group's median multiple is 5.9x.

Shohoz

As per March 31, 2020, Shohoz is valued at USD 6.1 mln and classified as a level 3 investment based on a forward-looking EV/Revenue model. The latest transaction was in 1Q19 where VNV invested USD 7.0 mln for 15.5% ownership in the company. The peer group consists of listed mobility and delivery companies and the median multiple is 1.8x.

Wallapop

As per March 31, 2020, Wallapop is classified as a level 3 investment. VNV's indirect stake in the company is valued at USD 5.2 mln. As per March 31, 2020, VNV values its indirect investment into Wallapop as per a forward-looking revenue valuation model. The peer group's median multiple is 6.7x.

Numan

As per March 31, 2020, Numan is classified as a level 2 investment based on convertible loan investments, amounting to USD 1.2 USD, which were converted into equity and an additional investment, amounting to USD 1.3 mln in 1Q20, in connection with the finalization of the company's A round. Numan is valued at USD 4.4 mln on the basis of this recent 2020 financing round.

Vezeeta

As per March 31, 2020, Vezeeta is classified as a level 2 investment based on a new funding round in February 2020. The company has since Covid-19 seen strong increase in demand and launched new products. There is a higher risk-premium due to current volatility but Vezeeta is in a stronger position in terms of outlook and therefore the transaction-based valuation is still relevant. VNV values its stake in the company at USD 4.4 mln as per March 31, 2020.

JamesEdition

As per March 31, 2020, JamesEdition is valued at USD 3.3 mln and classified as a level 2 investment based on the latest transaction in the company, which closed in the second quarter of 2019. VNV invested a total of USD 3.3 mln (EUR 3.0 mln) in the company. Since the investment, JamesEdition has performed according to plan.

YouScan

VNV owns 20.9% of YouScan fully diluted (YouScan is held through a 33.2% holding in Kontakt East Holding AB, which owns 63% of YouScan). As per March 31, 2020, YouScan is classified as a level 3 investment based on a forward-looking revenue-multiple based valuation. This model-approach is deemed the best fair value estimate of YouScan. The peer group's median multiple is 3.5x.

Naseeb Networks

As per March 31, 2020, Naseeb Networks is valued at USD 2.9 mln and classified as a level 3 investment based on a forward-looking EV/Revenue peer multiples valuation model. So far, Covid-19 has not had a direct impact on the business.

The peer group includes four online classifieds/jobs portal peers including Infoedge and 51job, and the median multiple is 6.7x.

Grace Health

As per March 31, 2020, Grace Health is classified as a level 2 investment based on the March 2020 transaction amounting to USD 1.0 mln in the company. The company is valued at USD 2.2 mln. The demand for the company's services has increased due to Covid-19.

DOC+

As per March 31, 2020, DOC+ is classified as a level 3 investment based on a forward-looking revenue-multiple valuation. This model-approach is deemed the best fair value estimate of DOC+ as per March 31, 2020. The model-based valuation is 43% lower than last year's valuation of the company. The peer group's median multiple is 8.4x.

Agente Imóvel

As per March 31, 2020, Agente Imóvel is classified as a level 3 investment based on a forward-looking EV/Revenue multiples model. VNV has invested a total of USD 2.0 mln in the company, which as per March 31, 2020 is valued at USD 1.6 mln. The peer group consists of five real estate-focused listed peers and the median multiple is 11.6x.

Yoppie

As per March 31, 2020, Yoppie is classified as a level 2 investment based on the latest transaction in the third quarter 2019, valued at USD 1.5 mln (GBP 1.2 mln). So far, no Covid-19 impacts on the women's health business.

Shwe Property

As per March 31, 2020, Shwe Property is classified as a level 2 investment based on the latest transaction in the company, which closed in the third quarter of 2019. The company is valued at USD 1.4 mln. So far, no Covid-19 impacts on the business.

Dubicars

As per March 31, 2020, Dubicars is classified as a level 2 investment based on a transaction in the company which closed in the first quarter 2020. Dubicars is valued at USD 1.1 mln as per March 31, 2020.

JobNet

As per March 31, 2020, JobNet is classified as a level 3 investment based on a future looking EV/Revenue peer multiples valuation model. The model values VNV's stake in JobNet to USD 0.6 mln as per March 31, 2020.

The peer group includes four online classifieds/jobs portal peers including SEEK, Infoedge, and 51job and the median multiple of the peer group is 6.0x.

Marley Spoon (equity, Level 1)

As per March 31, 2020, the equity in Marley Spoon is valued at USD 0.5 mln on the basis of the closing price on the last trading day of Marley Spoon in 1Q20. Marley Spoon equity is classified as a level 1 investment.

Liquidity management (Level 1)

As per March 31, 2020, VNV owns USD 13.4 mln in money market funds and bonds as part of the Company's liquidity management operations. The funds and bonds are quoted on a daily basis and the fair value as per March 31, 2020, is the last published NAV as per end of March 2020.

Current liabilities

The book value for interest-bearing loans, accounts payable and other financial liabilities are deemed to correspond to the fair values.

The following table presents the group's sensitivity in level 3 valuations.

Company	Investment amount	Ownership, %			Sensitivity valuation			Benchmark
			-15%	-10%	Mar 31, 2020	+10%	+15%
Babylon	92,562	10.8	223,106	236,230	262,478	288,725	301,849	Revenue estimate
BlaBlaCar	122,425	8.7	135,352	143,313	159,237	175,161	183,123	Revenue estimate
VOI	60,783	32.7	73,028	77,324	85,916	94,507	98,803	Revenue estimate
Gett	52,580	5.3	60,581	64,145	71,272	78,399	81,963	Revenue estimate
Property Finder	24,655	9.5	33,695	35,677	39,642	43,606	45,588	Revenue estimate
SWVL	23,004	12.6	20,762	21,983	24,425	26,868	28,089	Revenue estimate
Hemnet	10,118	6.0	16,341	17,303	19,225	21,148	22,109	EBITDA & SEK/USD estimate
OneTwoTrip	20,654	21.1	12,878	13,636	15,151	16,666	17,424	Revenue & RUB/USD estimate
Dostavista	11,561	15.9	9,743	10,316	11,462	12,609	13,182	Revenue estimate
Booksy	9,489	11.8	9,195	9,736	10,818	11,899	12,440	Revenue estimate
Housing Anywhere	9,601	29.4	7,376	7,810	8,678	9,546	9,979	Revenue estimate
Monopoliya	9,372	9.1	6,467	6,848	7,609	8,370	8,750	Revenue & RUB/USD estimate
El Basharsoft (Wuzzuf and Forasna)	3,785	23.7	5,754	6,092	6,769	7,446	7,784	Revenue estimate
Merro	8,763	22.6	5,378	5,694	6,327	6,960	7,276	Model based valuation
Shohoz	7,004	15.5	5,162	5,465	6,073	6,680	6,984	Revenue estimate
Wallapop	9,059	2.4	4,428	4,688	5,209	5,730	5,990	Revenue estimate
YouScan	8,094	20.9	2,800	2,965	3,295	3,624	3,789	Revenue estimate
Naseeb Networks (Rozee and Mihnati)	4,500	24.3	2,503	2,650	2,945	3,239	3,386	Revenue estimate
DOC+	7,750	26.7	1,734	1,837	2,041	2,245	2,347	Revenue & RUB/USD estimate
Agente Imóvel	2,000	27.3	1,331	1,410	1,566	1,723	1,801	Revenue estimate
JobNet	500	3.8	511	541	601	661	691	Revenue estimate
Total level 3	520,225		638,126	675,663	750,736	825,810	863,347

Change in financial assets at fair value through profit or loss

/Expressed in USD/	Opening balance	Investments/	FV change	Closing balance	Percentage weight
Company	Jan 1, 2020	(disposals), net		Mar 31, 2020
Babylon	200,000,050	–	62,477,509	262,477,559	33.3%
BlaBlaCar	209,453,900	–	-50,216,705	159,237,195	20.2%
VOI	102,433,773	–	-16,518,270	85,915,503	10.9%
Gett	74,853,327	–	-3,581,291	71,272,036	9.0%
Property Finder	47,883,261	–	-8,241,665	39,641,596	5.0%
SWVL	16,001,533	7,002,157	1,421,735	24,425,425	3.1%
Hemnet 1	25,845,449	–	-6,620,423	19,225,026	2.4%
OneTwoTrip	28,652,539	–	-13,501,489	15,151,050	1.9%
Dostavista	11,561,199	–	-98,822	11,462,377	1.5%
Booksy	12,931,128	–	-2,113,459	10,817,669	1.4%
Housing Anywhere	6,365,877	3,314,561	-1,002,677	8,677,761	1.1%
Monopoliya	9,371,881	–	-1,763,143	7,608,738	1.0%
El Basharsoft (Wuzzuf and Forasna)	8,629,891	–	-1,860,887	6,769,004	0.9%
Merro	7,652,180	–	-1,325,243	6,326,937	0.8%
Shohoz	7,003,759	–	-931,014	6,072,745	0.8%
Wallapop	7,347,479	–	-2,138,611	5,208,868	0.7%
Numan	1,064,011	2,552,791	763,367	4,380,169	0.6%
Vezeeta	3,155,946	–	1,213,365	4,369,311	0.6%
JamesEdition	3,359,400	–	-60,000	3,299,400	0.4%
YouScan 2	3,867,104	–	-572,429	3,294,675	0.4%
Naseeb Networks (Rozee and Mihnati)	3,528,084	–	-583,504	2,944,580	0.4%
Grace Health	1,073,245	995,390	172,118	2,240,753	0.3%
DOC+	3,556,442	–	-1,515,883	2,040,559	0.3%
Agente Imóvel	2,800,227	–	-1,234,004	1,566,223	0.2%
Yoppie	1,480,920	–	–	1,480,920	0.2%
Shwe Property	1,435,278	–	–	1,435,278	0.2%
Dubicars	508,320	400,025	147,449	1,055,794	0.1%
JobNet	718,796	–	-118,151	600,645	0.1%
Marley Spoon	168,334	–	343,401	511,735	0.1%
CarZar	451,287	-466,330	15,043	–	0.0%
Inturn, convertible debt	5,061,667	–	75,833	5,137,500	0.7%
Napopravku, convertible debt	–	350,000	2,397	352,397	0.0%
Naseeb Networks, convertible debt	211,667	–	5,055	216,722	0.0%
Numan, convertible debt	1,332,192	-1,239,392	-92,800	–	0.0%
Housing Anywhere, convertible debt	561,587	-549,825	-11,762	–	0.0%
Liquidity management	20,660,133	-6,917,887	-378,343	13,363,903	1.7%
Total investment portfolio	830,981,866	5,441,490	-47,843,303	788,580,053	100.0%

1 Indirect holding through YSaphis S.A. and Sprints Capital Rob R Partners S.A.

2 Reflects VNV's 20.9% indirect shareholding in YouScan which is held through a 33.2% holding in Kontakt East Holding AB, which owns 63% of YouScan.

Note 4 Long-term debts

Bond 2019/2022

During the first quarter 2020, VNV carried out a subsequent issue of bonds in an amount of SEK 150 mln under the framework of its outstanding bond 2019/2022 with ISIN SE0013233541. The subsequent issue was priced at 102.75 per cent of par. Following the subsequent issue, the total amount outstanding under the Company's bond loan is SEK 800 mln.

Leasing liabilities

As per March 31, 2020, leasing liabilities are recognized with a provision of future long-term lease payments amounting to USD 0.5 mln.

Note 5 Long-term incentive programs (LTIP)

LTIP 2017/ Completed	LTIP 2018	LTIP 2019
Jan 2017– Dec 2019	Jan 2018– Dec 2020	Jan 2019– Dec 2023
May 2017– May 2020	May 2018– May 2021	Aug 2019– May 2024
225,000	510,000	2,100,000
330,750	742,350	2,100,000
0.42%	0.95%	2.7%
72.50	74.70	63.50
8.25	8.59	6.60
–	–	6.84
–	–	0.71

/LTIP share-based remuneration expense, excluding social fees in USD mln/	LTIP 2017/ Completed	LTIP 2018	LTIP 2019
3m 2020	–	0.21	0.05
2019	0.71	0.83	0.09
2018	0.70	0.52	–
2017	0.45	–	–
Total	1.86	1.56	0.14

There are two running long-term share-based incentive programs for management and key personnel in the VNV Group. The 2018 program is linked to the long-term performance of the Company's Net Asset Value and the 2019 program is linked to the long-term performance of both the Company's Net Asset Value and of the VNV share price.

Outstanding program 2018

Participants in the 3-year 2018 program purchased shares (Swedish Depository Receipts) in the Company. For each purchased share, participants are entitled to receive additional shares, so-called performance shares, free of charge, subject to fulfillment of performance conditions set by the Board of Directors based on the Company's Net Asset Value.

The rights to receive shares automatically convert into common shares at the end of the program at an exercise price of nil. The participants do not receive any dividends and are not entitled to vote in relation to the rights to receive shares during the vesting period. If a participant ceases to be employed by the Group within this period, the rights will be forfeited, except in limited circumstances that are approved by the board on a case-by-case basis.

The fair value of the depository receipts on the grant date was calculated on the basis of the market price of the Company's depository receipts on the grant date per depository receipt without adjustment for any dividends during the vesting period.

Outstanding program 2019

Similarly to the 2018 program, participants in the five-year 2019 program purchased shares in the Company.

For each purchased share, participants are entitled to subscribe for newly issued redeemable common shares (2019 Plan Shares) in the Company. Depending on the performance of both the Company's Net Asset Value and of the Vostok New Ventures share price, the 2019 Plan Shares will be redeemed or reclassified as ordinary common shares and represented by Swedish Depository Receipts, provided certain performance conditions have been fulfilled. If the performance conditions have not been fulfilled, then the plan shares will be redeemed.

The participants will be compensated for dividends and other value transfers to the shareholders. The participants are also entitled to vote for their 2019 Plan Shares during the measurement period.

If a participant ceases to be employed by the Group within this period, the plan shares will be redeemed, unless otherwise resolved by the Board on a case-by-case basis.

The fair value of the 2019 Plan Shares on the grant date was calculated on the basis of the market price of the Company's depository receipts on the grant date and prevailing market conditions by using a Monte Carlo Valuation Method.

To carry through the incentive program, the Company subsidized the subscription price payable by the incentive program participants for the 2019 Plan Shares. The subsidy amounted to USD 2.6 mln, social fees excluded, for the cost of acquiring plan shares. The cost for financing and acquiring plan shares is expensed directly.

The Company also compensated participants for the tax impact arising from the fact that the subscription price was below fair market value. The cost of this subsidy, social fee excluded, amounts to USD 1 mln and will be expensed over five years, treated as vesting expense.

Completed program 2017

On March 24, 2020, the Board of Directors determined that the development of the Company's Net Asset Value over the performance measurement period of LTIP 2017 (January 1, 2017 through December 31, 2019), meets the so-called target level, whereby each savings share held by program participants throughout the vesting period (until March 31, 2020) will result in an allocation of five performance shares free of charge. As a result, following adjustment for the distribution of proceeds from the sale of Avito, participants in LTIP 2017 are entitled to receive a total of 330,750 shares in May 2020.

Accounting principles

In accordance with IFRS 2, the costs for the program, including social fees, will be reported over the income statement during the program's vesting period. The value is recognized in the income statement as a personnel cost on-line operating expenses, allocated over the vesting period with a corresponding increase in equity. The recognized cost corresponds to the fair value of the estimated number of shares that are expected to vest. This cost is adjusted in subsequent periods to reflect the actual number of vested shares. However, no adjustment is made when shares expire only because share price-related conditions do not reach the level.

Note 6

Depository receipt buy-back

During the first quarter 2020, no SDRs were repurchased. At the end of the period, the number of outstanding common shares (SDRs), excluding 7,685,303 repurchased SDRs, was 78,150,006.

Note 7

Events after the reporting period

On April 7, 2020, the Company announced that the Board of Directors proposed to change the domicile of the VNV group from Bermuda to Sweden. The Redomestication, which is subject to an SGM on May 12, 2020, is intended to be carried out by way of a Bermuda scheme of arrangement, whereby SDRs in the Company are cancelled and exchanged for shares in a Swedish group entity that, following the Redomestication, will constitute the new parent company of the VNV group.

On April 7, 2020, in the notice to the AGM 2020, the Board of Directors proposed a resolution to change the Company's name to VNV Global Ltd.

Information

Background

Vostok New Ventures Ltd was incorporated in Bermuda on April 5, 2007 with corporate identity number 39861. The Swedish Depository Receipts of VNV (SDB) are listed on Nasdaq Stockholm, Mid Cap segment, with the ticker VNV SDB.

As of March 31, 2020, the Vostok New Ventures Ltd Group consists of the Bermudian parent company Vostok New Ventures Ltd; one wholly-owned Cypriot subsidiary, Vostok New Ventures (Cyprus) Limited; one controlled Dutch cooperative, Vostok Co-Investment Coöperatief B.A.; and one wholly-owned Swedish subsidiary, Vostok New Ventures AB.

The financial year is January 1–December 31.

Parent company

The parent company is a holding company, which owns the Cypriot subsidiary Vostok New Ventures (Cyprus) Limited. The net result for the period was USD 3.49 mln (2019: 71.22). Financial assets at fair value through profit or loss refers to liquidity management investments.

Financial and Operating risks

The Company's risks and risk management are described in detail in note 3 of the Company's Annual Report 2019.

Upcoming Reporting Dates

VNV's report for the six-month period January 1, 2020–June 30, 2020, will be published on July 29, 2020.

Hamilton, Bermuda, April 29, 2020

Per Brilioth Managing Director

Report on Review of Interim Financial Information

Introduction

We have reviewed the condensed interim financial information (interim report) of Vostok New Ventures Ltd as of March 31, 2020. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34.

Gothenburg, April 29, 2020 PricewaterhouseCoopers AB

Bo Hjalmarsson Authorized Public Accountant Auditor in charge

Martin Oscarsson Authorized Public Accountant