KEO Capital

So, it's a great pleasure to welcome back Roberto Marchioro, Chief Operating Officer, and a warm welcome to Pablo Ribas, Chief Executive Officer, I should say, Miles Molyneux, CFO, and David Tomasino, CEO for Keo Energy. Hello, boys. Nice to see you. Roberto, it's been yet another very busy quarter, so please take it away.

Thank you. Thank you very much. Good morning, everyone. And thank you for joining us. Welcome to Q Capital AB's second part of 2026 presentation. Today, we walk through our results of the quarter and we will leave a time for a quick session in the end. So before we get into the numbers, let me introduce today the presenters and take a moment also to welcome our new management team to the company. So I'm Roberto Marchiori, the COO of Q Capital AB. We have Pablo Olivas, the COO. We have also Miles Molino, the CFO, and David Tomassoni, the CEO of Q Energy. Welcome, guys. Thank you.

Thank you. Pleasure being here.

Now let's move into the FinTech operational update. So starting with this update on our products and solutions across our FinTech business. On the cross-border solution, which is the US dollar denominated platform, it's already live in the United States. As you can imagine, United States has a broad spectrum of global merchants. We are also live in Peru, Bolivia, Chile, Colombia, and Brazil, spread in Latin America. We also have many, many importers in this region of Latin America. Moving to Canada, which operates in Canadian dollars, we just signed a facility and at the same time launched operations with a third quarter, and we expect a ramp up over the coming quarter since once we start creating the team and putting more effort in the platform. Homeworld New Mexico, which operates in Mexico business and US dollars, we concluded the renew of our license agreement with American Express, our long-term partnership with this global rail company. And finally, Working Brasil, which operates in Brazil and Reais. We expect to launch during the third quarter of this year, which the operations are about. Of course, we expect to ramp up during the fourth quarter and also first quarter next year, 2027. Just a quick recap here on our geographies and footprint. We are located in which product is enabled in each region. On our new site, our supply chain's finest product, we are live in Mexico. We just launched in Canada, like I just told you in the previous slide, and we expect to launch in Brazil in the next in this quarter of 2026. On the cross-border solution side, we are already live in the United States, Peru, Bolivia, Chile, Colombia, and Brazil to benefit on this cross-border transactions of importance. Moving to the next slide, here we bring more about customer evolution. So just a reminder that the closing occurred during the month of April, in the beginning of the second quarter, when the business combination took effect. During the beginning of the year, we have been focusing on developing our products, technology, and creating the foundations for sustainable growth, aligned with our strategy. So during the second quarter, our average customers grew 60% part of a quarter, and we ended June with 61 active customers. Our focus today is on people optimizing onboarding losses for our new clients, and also so we can ramp up our products with more efficiency. Moving to the next slide and talking more about the average outstanding portfolio. So during the second quarter, we saw a recurring cycle effect early in the quarter. So as the clients were renewing their credit lines with recovery during the months of May and June, and looking at the end of the quarter position in June, our total portfolio was $50.7 million, as the average was around $45 million. Moving to the next page, talking about total payment volume, the TPV. The total payment volume is the amount of the customer base is transacting during the period and paying their invoices inside our platforms using our credits. So our total payment volume kept growing quarter-over-quarter, reaching $51.4 million during the second quarter, a 90% increase quarter-over-quarter, and close to 40% growth year-over-year compared to Q2 last year. This aligns our customer base growth rate in the case that we are expanding our businesses. And during 2026, we reached a total TPV volume of $94.5 million. And if you look at the last 12 months basis, we reached almost $200 million in volumes. Keep in mind that the business combination closed as of second quarter of this year, early April. So these figures glance pre and post closing periods. And going to the next slide, the total portfolio revenue. So let's talk about revenue and then take rates. It's PPI that we are showing this page. Revenue basically comprises all the income streams for instance, interest rates, interchange fees by conducting payment to the networks of the real companies and also other fees. And the take rate is basically the amount of this revenue divided by the amount of the payment volume, so the TPV, during the same period, representing our total average income over the amount of transactions occurred by our customers during the period. So basically, the take rate is the portion of each transaction that stays with us at the end. During the second quarter of 2026, we presented $1.6 million in revenue. We found average take rate of 3.1% on the TPV volume. During the first half of the year, the total pro forma revenue reached $3 million in the last 12 months, around $5 million. Remember, these numbers are basically considering pre-transaction Q balance sheet and post-rejection Q2 for the company. Our new focus right now is also launching new programs to also provide support of revenue expansion going forward. So by launching Canada and Brazil, we expect to see the effects in the upcoming quarters. So with that, I will hand it over to David Tomassoni to walk through the Venezuelan's live on Q energy updates.

Thank you so much for having me today. So I think the most important points here that we need to discuss that will be completing the purchase of 24% from Noveno. And then we are purchasing price over 16% for about 37.5 million USD. which would take us to about 40% equity of PU Petrodonator. We have a contingent payment of 18 million with an enforcement of first option call from Norway. August 28, we signed a major contract, which is an operational agreement. We defined the OG commercializations, which defined the marketing sales, commercialization of gas productions. And also we have a great news because we were able to add the associated gas to this new contract, which before was not included. In term of a new negotiation, we were able to include an income tax, 34% of Greenfield versus the 50%. And we have an extension of JV to 2056. So we are negotiating also an extra 9.9 of equity, which will take our stakes up to 49.9%. This is an ongoing conversation with PDVSA. And I give it back to you guys, to Roberto and Maya. Take care.

Excellent. So go ahead. Thank you, Davide. Before we get into the numbers, let me explain a little bit how they were built. The figures on the next few slides are pro forma figures, consolidating KEO World on a pre-acquisition basis with the prior Maha Capital figures, plus the results of the combined entity post acquisition. These pro forma numbers are not reflected in Keogh's official financial statements. They're presented just for illustrative purposes to help explain the trends and business performance, irrespective of the capital transaction that took place in April. So picking up on the top on revenue, as we covered in the FinTech section, revenue came in at 1.597 million, which was up 12% quarter over quarter and 16% year over year. And this was driven by higher credit volume and growth in the portfolio. On the operating expense side, which are the direct expenses related to managing the portfolio, we came in at $2.549 million, which is up 60% quarter over quarter. And that reflects the post acquisition ramp up of our operations across several geographies, as well as higher payment volume. Go to the next slide. Moving to general and administrative expenses, recurring G&A in the second quarter was 2.177 million, while total G&A was 4.5 million. The difference between the two of 2.323 million is non-recurring expenses, which is mainly due to the relisting and acquisition costs, as well as the Venezuela transaction. On the financial income, we came in at 1.594 million. And this is primarily the net interest income from the investment of our cash in a balance sheet. And that quarter four amount reflects the investment of the, or I'm sorry, quarter one amount, the 2.85 million was the interest income from the old Maha prior to the deal. The next slide is a year-to-date progression review. While our accumulated net loss for the year so far was $48.9 million, a significant portion of that, $45.358 million, is non-cash. And that was due to stock-based compensation expense, co-investor share issuance, and other non-cash impacts. Obviously, these consume accounting profit. They don't represent an actual cash outflow. If we remove those non-cash items and also remove the non-recurring G&A that we showed on the previous slide, which was 3.54 million, we reach a breakeven level year-to-date of just over breakeven of 5,000. I want to be explicit that this adjusted figure is not a gap measure. This is distinct from our statutory year-to-date net result of the 48.901 million. Turning the cash flow, we started the period with 117.7 million in cash plus credits. Operating cash flow was negative 17.7 million, which was driven primarily by working capital changes, the net operating results, as well as interest expense and effects. Investing cash flow was positive 9.4 million, including 9.1 million of cash generated from the business combination. And financing cash flow was positive 14.1 million, largely due to a capital raise priced at 16 krona per share as part of the transaction that closed in April. We closed the period with 123.5 million cash credits and restricted cash and a net cash position of 108.5 million after the co-investor loan, which includes the 50.7 million of customer receivables portfolio that Roberto showed earlier. With that, I'll hand it back to Roberto for some closing remarks.

Thank you, Mark. So going to closing remarks, So basically on the left side of the page, we have here our achievements of the first half of the year. On the fintech side, we completed the releasing process. We completed the capital raise of $28 million at 16 Swedish pounds per share. We closed the business combination with QWorld. We also closed the facility of $15 million Canadian dollar to support Canada growth. And we also launched WorkU in Canada. On the energy side, we exercised the first call option of Petrodineta. Then we reached the binding agreement to increase our stake up to 40% at the JV level. And also the final agreement with Fidel Beza, just signed in the last couple of days with the support here of the EU. What's about to come in the next steps on the feedback business, as we mentioned, we are about to launch Brazil WorkU platform, hopefully this month. On the energy side, we expect to sign the offtake agreements for the visa, issue the reserve report in this next month, and add this additional gas reserves that David was mentioning, and a second, an update of the reserve reports. On the corporate side, we continue working with the spin-off and also the U.S. listing. Again, once we are now with American leadership, we want to also be a fully American company. And on the FinTech side, after we conclude the spin-off of energy side, we also intend to list the FinTech business in the United States. So with that, I conclude your presentation. and open the room for the Q&A session.

Well, thank you for that, gentlemen. There have been a lot of questions ahead of this presentation. And as we speak, the viewers are sending in their questions. And as I said, I would try to keep questions slightly put together with Keogh Capital and energy and then perhaps a P&L question. So I will start with, let's say, a P&L question. So I will read The Swedish Krona's 16 races were struck at a premium to the current price with a 4 million per quarter underlying burn rate and the 27.5 million Venezuela step up due around November. close what's the expected cash position at year end and should shareholders expect further races before the fintech turns cash generative so basically it's a question of raising capital here before year end so we will not give guidance by the position of year end but the idea is

once we were expanding the initiative in Venezuela is to look for the best alternatives when it comes to finding the resources for the payments to Novo Nord by the end of the year and also remember that on the oil field side David can talk more also but we don't expect a huge amount of in the first month. So we will have more time for the best solution. I don't know, David, if you want to complement.

Yes, definitely, as Roberto said. So I think I'm reminded with you in this aspect. Thank you.

Well, thank you for that. And then if we look at your outstanding portfolio, it declined slightly, I would say, but it did decline from a million US dollars, 49.8 in the first quarter to 45.6. So the main question, I think, from the writer here is, has your expansion halted or how should we view this, well, this temporary setback?

Well, that's a good question. Thank you, Carlo. And that's why we included a new KPI for the investors to better understand the cycles we have inside this, right? Because the right way of looking at this is also supporting the KPIs of your active customers and also your TPV volumes trend. Because we have inside our businesses this cycle. So normally, Your clients can pay their credits by the end of the month. So by then, you will experience this reduced amount under the outstanding credit portfolio. But if you look at it compared to the other KPIs, we are going to understand the trend now as we are working hard here establishing technology, the foundations, the procedures, but also working on the relations of customers and we see this growth trend here for the next quarters.

Thank you for that and we continue here with Keogh Capital then. How much of the Canadian 50 million in the credit facility has been drawn to date?

We just launched Canada. We are starting building relationships with customers. We are building the team organization. So everything is being set for the next quarter to come. So as of now, we are working to establish everything to start growing. And remember that in this facility, we withdraw 80% in advance to each credit line that we provide for customers.

And there's a follow up question here. Would you give us a number which I would assume would be growing, but the number of Canadian customers onboarded and approved for credit?

We have a pipeline in place, we cannot disclose right now, but in the next quarter we will be happy to do so. And again, we expect to see activities and growth in the next quarters.

And if we turn our eyes to Brazil, also a viewer question here. How many companies are currently onboarded and approved for the credit and actively transacting?

In Brazil, we didn't launch yet, right? We expect to launch Brazil or here during this quarter, so by the end of September. And once we are live, again, we are putting in place a team, we are creating all the foundations, the technology side, and we expect to release more figures by the course of next quarter.

And I will combine two questions here. One is if you could give us more color of the portfolio and any estimates of the year end. And I will combine that with a question here that I will translate from Swedish, which is what kind of portfolio size do you need to get a sustainable break even for the fintech?

No, like I told you on the previous slides, we just launched Canada, we are about to launch Brazil. These are two important pillars to start growing our strategy across different and huge markets in Latin America and Americas. And we also are working on the cross-border solution parallel. So we see here a lot of potential, but we cannot give guidance by the end of the year. In the meantime, I think we already did this back-of-the-envelope math, right, using hypothetical numbers. If you reach around $120 million portfolio, this will mean revenue generation capacity between $25, $30 million, which will provide us to be in a profitable position.

Right, thank you for that. And then we have some questions about Lionheart. So could you elaborate on why you did not renew your exclusivity with Lionheart? Yes, go ahead.

Thank you, Carlos, for the question. So, joyfully, we're ending the binding NOI with Lionheart because adding the gas to our commercial agreements and we increased a lot of our valuations. So our valuation prospects were not aligned. So we need to protect our investors and that's the reason why we decided probably to opt for a direct listing and a spin-off from the Nasdaq in Sweden.

Thank you for that. And while we're at it with KEO Energy here, you have mentioned the expected reserve report on the second half here. Would you be able to pinpoint more granular?

so we are doing actually two reserve reports so the first one is on the crude which should be out in the next two three weeks and then we are editing the reserve reports on the gas which will be out by the end of the year

And further on the energy side here, I would just read a question right up. Is it right to assume that the deal signed with PDVS has de-risked KO Energy in your mind and thus improved the intrinsic value? And I can see why that question is coming. So could you answer that?

Absolutely. I mean, you know, first of all, actually, we had an extension. So our new signing agreement take us to 2056. So we have 30 years in pipeline to be able to execute this contract. And so we are very optimistic about our return and our, you know, the reserve that we have.

And I would assume this would be a follow up question, but it's also about the divestment here. But when do you expect to be able to communicate, let's say, the intrinsic value of the Keogh Energy, which I believe then would be a spinoff? What's the process there?

Yes, probably now we're approaching very big banks here in the United States that will allow us to walk through the spin-off in the U.S. We've been approached for the true stocks to change here, so we are evaluating the best packaging for us. And so we consider it probably six months to seven months to be able to be listed here in the United States. And then, you know, I believe in the next 30, 40 days we will have a great report that will allow us to give a great evaluation about the Q energy.

And how do you aim to fund the remaining part of the purchase price in Venezuela? Do you see a risk of another capital raise? Well, you have answered a general capital raise. So what's the thinking there?

No, we are okay with the capitals at this stage. We have the capital needed to conclude the 40% purchase. And obviously, we've been bombarded, if I can say the word, to people that want to invest and entities to allow us to get where we want to be in terms of production of crude and gas.

What would be the capital allocation priority still with Venezuela here between further increasing ownership, field redevelopment and preparing for the spin listing?

Our idea is to reactivate probably the majority of the wealth and with the associated gas. So we're planning probably an investment around 90 to 150 million dollars for the next 10 months.

And then if we have a general questions regarding listing here, would the Nasdaq listing be in Sweden or in the US?

Well, it will be a cross-listing or a dual-listing. We are evaluating the best option for our investors so they can join free. Also, we have all the investors here in the United States. We like to have possibility to acquire and purchase stocks. So we'll be both probably. We maintain both listings.

And then a more general, let's say, strategic question here. Considering the recent macro events combined with KEO entering the stage here, where you have war inflation fears, currency fluctuation, local currency strength versus the US. Has that in any way affected your strategy or is it, I mean, you're working according to plan?

Everything goes according to plan. I mean, honestly, it doesn't affect a lot in our strategy. So everything hoping ahead as we plan it. Actually, we are very excited because, you know, we obtain an extension. We include the gas, which previously was not included to it in the long term. It's going to be much more valuable probably by the accrued because we have three different gas, you know, the solid gas and the associated gas and we have liquids, so algae now, which will allow us to improve our customer base. Yeah.

And if we look to Keogh Capital here, if we look at the recent development for the last six months and so on, has that in any way affected your first supply, EI, the borrowing? And what's the customer, the buying environment out there?

No, not at all. It's also the same. We are happy with the launch of Canada. We are also excited with the launch in Brazil in the following months. So nothing changes, we keep believing here in this path that we created some months ago, and we believe that's how we're gonna generate value to our shareholders.

And I must just scroll down here a couple of other questions here. Yeah, will there be expansion outside the areas that you have already spoken about that would be Well, you have North America and Latin America. I know that in the previous broadcast, there was a lot of talk about West Indies and stuff like that. How do you see further expansions or are you digging where you are?

Oh, sure. For sure. It's a long term view. We want to expand. But let's give us some time so we can elaborate. Where are we going to reach next up to Latin America and Americas in the next one? Who provides more Intel?

If I can just answer that quickly, right now the focus is to scale what we have, the footprint that we have. There's tremendous potential, there's tremendous volume. So we're trying to execute on the strategy, get that growing, and then consider other strategic expansions.

And I think this question came on back of you, Pablo Ribas, being a new CEO and with your background here. So with that, very interesting. You had had a very busy quarter and I will assume you have a very busy quarter ahead of you. So I will thank you for that, gentlemen. And we will thank everyone who asked the questions. I'm sure there will be more questions. Well, I got one in here. Could you further explain the relative large non-cash expenses? Because you mentioned that in the beginning. So if we just round off with that question.

Okay, so first part of it, they made two major impacts, right? The first one was the stock option-based issuance by the transaction related with you. And secondly, it was a capital raise for co-investors also in the same transaction. These are no cash impacts, only accounting, and they were basically reflected by this.

Mm-hmm. Right, so with that, we will say thank you to you again and a special thank you to all the ones who had forwarded questions. And if you have any unanswered questions, we will refer that to the company. So with that, gentlemen, thank you so much. Thank you very much for having us.