VEF

Key events during the quarter

• The central bank of Brazil cut SELIC interest rate from 13.75% to 12.75% in the quarter, with more expected by YE23. In contrast to much of the world, Brazil is now enjoying a tailwind from falling rates, with clear positive implications for macro, the banking system and fintech within that.
• VEF invested an additional USD 3 mln into Gringo as part of their Series C funding round. Gringo is the most used and fastest growing app for Brazilian drivers.
• VEF invested an additional USD 5 mln into Creditas in the form of a convertible loan note.

Net asset value

• NAV of VEF’s portfolio as at 9M23 is USD 422.7 mln (YE22: 381.8). NAV per share has increased by 11% to USD 0.41 (YE22: 0.37) per share during 9M23.
• In SEK, NAV equals 4,602 mln (YE22: 3,981). NAV per share has increased by 16% to SEK 4.42 (YE22: 3.82) per share during 9M23.
• Cash position, including liquidity investments, was USD 35.4 mln (YE22: 48.5) at the end of 3Q23.

Financial result

• Net result for 3Q23 was USD -56.5 mln (3Q22: 4.8). Earnings per share were USD -0.05 (3Q22: 0.01).
• Net result for 9M23 was USD 40.7 mln (9M22: -315.8). Earnings per share were USD 0.04 (9M22: -0.30).

VEF CEO, David Nangle, comments:

“3Q23 delivered a growing number of data points highlighting an ongoing recovery in the investment world that VEF plays within. A better risk/reward balance is showcased by the majority of our companies being cash flow positive, or on a clear path to that destination. Growth is less euphoric, but business models are more robust and sustainable as a result.”

Events after the end of the period

On 3 October an Extraordinary General Meeting was held in Stockholm, where the Company’s shareholders approved a new long-term incentive program (LTIP 2023) for key employees. LTIP 2023 is a five-year incentive program with identical terms as LTIP 2022.

Visit VEF’s IR page for our financial reports and other information: vef.vc/investors