Maha Capital AB (publ)

11 o'clock and we are live here again at Investor Studios, which is another report presentation. Today it is Maha Capital who has published a report for the first quarter of 2026. And standing beside me is the company's CEO, Roberto Marchiori.

Welcome. Welcome, Mike. Thank you very much. Welcome, everyone, for our Q1 presentation.

Yes, and you will give the presentation and afterwards I'll ask some questions. So without further ado, I'll simply hand over the board. Okay, excellent.

Thank you very much, Mike. so going to our first page talking about our main highlights of the quarter and also some subsequent events first we completed the releasing process with Nasdaq it's a very important milestone to prove our governance standards and all the process that we are being working with them and also we will talk a little bit more further but we also keep aiming the US listing plan for the second half of the year or first half of the year of 2027. Regarding Petrodineta, our asset in Venezuela, we exercised the call option finally and now we are advancing negotiations on the contracts with PDVSA so then we can be prepared to start operating and also we are going to talk a little bit more about the potential separation of the oil and gas assets from the fintech business. Also, one day or two days after the quarter, we just concluded our business combination with Kew World. Remembering we also concluded the capital raise of $27 million at 16 Swedish crowns per share. And now we end up the quarter with $117 million of cash balance and receivables. But if you put on top of the additional $30 million of the capital raise we did during April, we end up of performing a cash balance and receivables of $130 million. This will be very important to support us going through the launch of some programs on WorkU, which we're going to talk a little bit further on the Canadian market and Brazilian market and also the cross-border solution that we call Global Trade Car. So significant updates during the quarter and some days after the quarter on both business and now we are ready to further develop and also value creation going forward for the shareholders. So in this page we are just showing here a recap on Maha overview, the portfolio. So now we have the FinTech business on the left side the cross-border solution and also the supply chain finance platform, which we call WorkU. This is the main core business as of now. But on the right side, we also have now our stake of 24% in Petrodaneta, a large field in Venezuela, in the Maracaibo region. But remember, we also have a call option to acquire up to 40% stake until March 2028, so two years from now. We are going to talk now about the updates related to Q, and then we move on to Venezuela. So here we are bringing the footprint. So Q has growing its footprint across America as the main focus. And being a single platform connecting buyers and suppliers and providing B2B payment solutions and credit. So, if you look at the work Q, the supply chain finance, we already be running in Mexico. That's where Q actually started in Mexico. We have a live operation there. And we intend to launch very soon Canada and also Brazil, which are also very large markets that we intend to grow there. And going to the cross-border solution, what we call Global Trade Card, we already started funding clients in Peru, Bolivia, Chile and Colombia, and Brazil. But of course, we also intend to expand in further markets across Latin America. And here, bringing an update on the portfolio, so if you look Comparing the average of approved credit lines during Q4 to this quarter, we have a slight increase. And if you look at the outstanding credit amounts, we also have seen on the WorkU side also an increase from $30 to $35 million of outstanding credit, with an average yield of 20.6%. And if you look for global trade card, the cross-border solution, we also have seen an increase on the outstanding credit average limits with an average yield of 13%. So, in a combined portfolio, we've seen our credit lines improving for around $60 million to $62 million on an average basis. but also we see here important increase on the outstanding credit from 39 approximately to 44.4 outstanding credit so remembering we want to to think in our portfolio think on our balance sheets we still have more cash to deploy, so we intend to start using our cash before looking for alternatives when you look for the senior lender facilities and these sort of things to start boosting even more the outstanding credits and operations. So talking about Venezuela, right, so remembering we now own officially 24% of PECS Veneta field after we exercise the call option during the quarter. Just remembering a little bit our field right, the main highlight, so this field as of now it's producing around 1.5 thousand barrels a day. It's a medium to light API, 26 to 32 degrees. This is a very interesting asset and quality for the region, remembering that Venezuela is very well known for the extra heavy oil, so this is a unique asset in the region. And it has a very large reserve, so if you look to the oil in place, more than 8 billion barrels, which represents around 400 million barrels to pure reserves and also 200 million dollars very equivalent to P remaining as reserves. So, a lot of potential to unlock. And also, we are very close to Chevron main assets, Petro-Boscã, which we see with good eyes also as a potential significant partner in the region. If you look also for the historical of the field, so it's comprised by four fields, Solapaz, Mara West, Mara East and also El Mohan. And this field reached the peak production around 915, around 240,000 barrels a day, so it is a very large asset. And they basically have around 300 wells. Of course, most part of it is shut-in. So the business plan is basically reactivating the wells, changing the lifting methods going forward so we can reach our peak production that we agreed already with PDVs of around 40,000 barrels equivalent per day. And of course, just remembering everyone, we still have a second call option, so we can increase our ownership up to 40% stake at the field. Here we are just also bringing back the business plan that was concluded last year, which represents accumulated production of more than 110 million barrels of equivalent. And also it's very important here to note that we intend time by time reactivating the wells, changing the lifting methods. which means low COPEX in the first year, so it means low financial exposure to start developing the field, which was part of our assumption here to have a low exposure in the first years before we seen here the production ramping up. And we reach this peak production of around 40,000 barrels a day around the next seven to eight years. So that's the plan, of course we have this approximately 20%, 30% on gas associated and also oil on the light dark blue color here on the charts. So, just to show a little bit about the potential of Petrodanil. And before coming to the financial highlights, just remember everyone, since we closed the transaction with the business combination with QWorld, their figures are not being comprised inside our financial statements, only on the second quarter of this year. So, of course, this will affect our numbers here, so that's why we'll put a few slides only to highlight some numbers. So, starting here on the financial highlights with the G&A financial income. So, when you look to the G&A, we see here a stable figure when you compare to Q1 last year. Of course, we intend to expect to reduce the non-recurring expenses going forward. These are, of course, related to the transaction with Q, but it shows for us a stabilization on the G&A. We hope to keep this going forward. And also on the financial income, we made the exercise here to exclude the change on the fair value of BRAVA, just to show here also the trend where we're seeing after we start deploying on Q4 and Q1 the loan agreement disbursements to Q operations, we're seeing here the increase on the income, on the net financial income. And here we are showing the consolidated pro forma net income overview. So, basically, we took here the net result of the quarter, which is negative on $800,000. But by making some adjustments, like excluding non-cash adjustments and also non-recurring G&A expenses, we will be almost profitable. We've got $1.2 million approximately without these expenses and effects. So this shows a little bit how we are positioning the platform of the fintech business to start growing and scale its operations and hopefully very soon being a profitable base. And here, like we always like to show the cash flow overview, we started the quarter with $180 million approximately, a net cash position of $90 million. And we ended up the quarter with $170.7 million of gross cash plus receivables of the fintech business, meaning a net cash of $91 million. But if you consider also the remaining capital increase that we finish on 2nd of April of almost $30 million, and if you exclude also the net debt provision of the earn-out related to the business with Beto Daneta, we reach the pro forma end of balance here of $130 million of cash and a net cash position excluding again the earn-out liability around $140 million at that position. So, this is very important for us considering the fintech business, right, where we want to also start deploying most part of our available caching inside this operation. So, talking about some achievements and next steps. So, we exercise the call option. So, that was a very important milestone for the company. Now, we actually owns the 24% stake in Petrodaneta. We also concluded the business combination with Kew, also the re-listing process in parallel with Nasdaq. By the way, I would like to thank you again, ask for all the support, and Neymar had seen also working very hard to achieve this goal. And also the capital raise of $27 million at 16 Swedish crowns per share, everything during the first quarter and the second quarter. And now, going forward, I think many questions will rise on this, but on the fintech business, we expect to launch WorkU Canada. Remember, this will be a huge milestone to us. In Canada, we will use our blockchain technology, which we are very happy with this achievement. And we also expect to launch Brazil in the second half of the year. Also, Brazil is... huge markets. We have many expectations on this. And on the oil and gas business, I think the main focus right now is to agree with PDVSA the contract so we can have not only the governance but also the operational control of the asset. I think we already previously mentioned this and we expect to conclude these agreements during the second half of the year. And also, we intend to release a reserve report also in the second half of the year, which will be important for shareholders to understand what's the size of this asset, some main elements here and assumptions on the economical side. And as general, like I mentioned earlier before, we intend also to go to the U.S. listing and also separate the oil and gas assets from the fintech business. We expect to be doing and working on this in the next half of the year or potentially the first half of the year of 2027, depending on the assessment we take. So that's a little bit of the next steps that we intend to deliver in this next one year looking forward. So I think I concluded my presentation. Thank you Mike again for opening here the space and I'll be happy here to reply some Q&A session with investors.

Of course.

We have a lot of questions that come in from the viewers and a lot of activity in the chat as well. And I hope we have time for all of them. We will simply have to see. But first of all, we'll talk about the letter of intent that you did in the United States. where there was a SPAC merger with the Blue Water Acquisition Corp. That letter of intent has been terminated. Why?

So, first of all, this was a non-binding letter of intent, right? So, this is normally the first step you take towards a transaction like this, right? All of this equity capital markets transactions involves a lot of assessment, not only by advisors, but also internally in the company to consider all the pros and cons, right? And then, of course, this is not so fast, right? But then, after making some assessments, we decided mutually, jointly agreed not to move forward because of the timing it might take and also because we didn't reach all terms and conditions that both parties required and was willing to move on. But there was nothing major and nothing related to due diligence or anything like this, any findings. It's more about timing and not reaching the same terms and conditions.

So it wasn't a single factor that, for instance, during your due diligence process? No, not at all. But considering that the letter of intent, even if it's not binding, it's still terminated, has that affected your timeline towards the US visit?

If you remember, last investors evening, we were looking for these opportunities as a fast track deal, right? So, of course, we'll have sort of impact, but as I've shown in the last slide here, that's next steps. We keep the goal to be listed in the US by end of this year or first half of next year. So, in terms of timing and commitment for us, it keeps the same.

And that answers the run. But how do you see the listing happening in a similar way to the letter of intent that you initially?

We are still assessing all alternatives, so we can also choose the best alternative to unlock value to our shareholders. Once we have more clarity and definitions, we will be providing this information to the market.

And to also be clear, the listing is to separate the oil business and the fintech business in Mahat?

This is part of the discussion, right? So, of course, we also release the intention, right, of separating the business, potentially listing Venezuela and making a distribution in kind of the shares. So, all of this package when it comes to U.S. listing is on the same topic and discussions and once we decide the best path, to be also locking value to shareholders, we will properly communicate this to the market.

Where are you currently in the process and if the thought to divest the shares in the new oil company to the shareholders? Sorry? Where are you currently in the process and if the thought to divest the shares in the new oil company to the shareholders?

Again, we are still assessing the whole structure, the whole process, the pros and cons of the So we can be unlocking this oil and gas assets to our shareholders as soon as possible and in the most effective way.

Right. Understood. Moving on then to the oil business in Venezuela, how soon can you launch production and how will you finance it? Yes.

So, as I showed before, nowadays the feed is already producing around 1.5 thousand barrels a day, right? We don't expect much investments, like I said, in the first year, so probably by reactivating wells and a small amount of investment will be enough. for the first maybe two years. So we expect this, as I showed before, to be first reactivating the wells, some wells, as of now they have around six wells working. We intend to start putting more wells to work, changing the lifting methods with ESPs, so we increase the flows of these wells. So we expect this to happen very fast, but first point, first step here is to have the agreements with PDVSA. That's the major milestone we need to have it as of now.

Some question marks as well regarding that in the chat, but before we go there, you have projected 40,000 barrels a day. What are the main obstacles before you get there?

Yeah, this is the peak production. Remembering this will take some years. I would say as of now, the main challenge in Venezuela is the lack of power and energy. But the interesting part is inside our field we have a lot of gas, associated gas, and one of our ideas is to use this gas to provide power energy, so we can avoid this risk and these downturns that we might have there.

Nick from the chat asks if Maha Funds Development investments in Petro Uzzaneta, how would cost recovery and revenue sharing work with PDVSA?

So, these are the kind of things that we are still discussing under the contract agreement and framework. So, I don't have this answer right now, but once we have definitive these documents, we will provide to these markets more information. And also, the certificate of reserves, we also observe this information, right? But talking about investments, like I said, it will be a small amount in the first year. And we don't see here much necessity in the first year of operation to look for funding structures.

And correct me if I'm wrong, but the forecasted date to that agreement is during the second half of 2026?

Yes, now before the year end, we expect to have this agreement with PDVSA. We are advancing as of now. I think we've been very focused with our team there to advance on these negotiations. So, hopefully very soon we will have more updates to the markets on this.

There is another question from the chat and I'm linking that to what you talked about in the presentation. You mentioned that Chevron could be a significant partner due to its proximity to Udene. But where are you currently in that process? Have you talked to them?

No, that's a good question. I think I cannot talk on behalf of Chevron. We already spoke with them a while ago about many opportunities there in the region. They are very close to our field, so they could be a partner not only to export the oil, maybe to share a gas. It's a good partner, but I think we need to first focus on achieving these agreements with PDVSA, then exploring more partnerships in the region.

I'm talking about oil then, discussing recent geopolitical developments and macro events. The higher oil price has gone no one by. Has that affected demand, supply and your general strategy in Venezuela? For us, as of now, it didn't change anything.

I think we are seeing here more exports towards the U.S. So, in that sense, it's good for us, right? It's all about our thesis of being compliant with U.S. relationship with Venezuela through General License 52. So, I think for now, we are okay and just following how this will develop going forward.

There's a question from the chat. Tony asks, is there still sanctions on Venezuelan oil?

No, like we explained in the last quarters, the United States released a couple of general licenses. Now we are basically using through the General License 52, where through our US entity we can not only sign these agreements with PDVSA, but also deploy capital towards the business plan so we are covered and we are fully compliant this was the first assumption by having any exposure in venezuela and shifting focus then from maha capital's oil leg to its fintech leg you previously talked about your regular reporting on the fintech operations when will you start with that and what kpis will you report on actually considering that we only have closing in the first days of q2 in q2 we intend to provide more data and information related to the fintech business of course and this will be also reflected inside our financial statements so this will be very helpful in the next quarter and of course we intend also to provide quarterly information and more data to everyone to be

following the trend and the company in this new business. And what KPIs are relevant to measure the success of the Fendtech business from an investor's point of view?

I think there are several, but I think the most important is how you are scaling up your platform, right? And as of now, by releasing and launching Canada and Brazil, this will be important going forward for the next quarters. It will support a lot this growth story. And also looking at a credit risk perspective, I think the default rate is also very important to follow to see how much profitability you are generating out of this push forward.

And for the fintech business, what is the primary focus right now?

So our main focus now is the operational execution. We have been very dedicated on launching Canada. Remember, Canada will have the blockchain technology, so we have been working a lot on this couple of months to be everything ready. Very soon we expect to launch it. And also Brazil. I think that's our main target right now for the next months. So then we are focused now after these launches on the commercial side and scaling up the platform.

Does that mean that you're expanding more in fintech and the lending business or how should we interpret that?

I think both, right? Because, for instance, in Canada, we have this blockchain technology developed inside Q. And of course, we can start thinking and planning to use this in other markets, right? It makes sense.

So, it's a combination of both, if I may say. And in accelerating the fintech business, do you see yourself needing more capital injections? Viewers are also curious what sort of funding mix does that entail? Your own equity, debt, etc.

Nowadays, we still have plenty of cash to deploy. That would be a nice work that we are going to do in the next quarters across these many regions. And of course, we already provide this analysis with hypothetical numbers to the investors, which we intend to scale up the platform also by bringing landing facilities with senior debts at attractive costs. so we can leverage up the portfolio through this. So that's a target we have, but as of now, the most important thing is the execution and launching the product, so we have all the tools available, and also deploying our capital first, and then bringing the senior lenders to provide to our operations.

Another question from the chat. The approved credit line for KEO was approximately 62 million dollars at the end of March. What is the current level today and what is management target towards the end of 2026?

No, for sure we will provide this update to the market as soon as possible. Like I mentioned, by having the launch of Canada and Brazil, this will be very important and mainly to Q3, because we will have these other markets to start increasing market share and so on. But of course, we at least intend here to use our capital or balance sheet first and then start leveraging this in the next 12 months.

Moving on to investor relations, Dan, there has been a research from Pareto that has been published very recently. How do you view the research coverage moving forward for Manja Capital?

This has been a discussion we have to try to be more, not only transparent, but also to bring more data to the market, because all of this transitioning, of course, is not so common. So we need to have this assessment and this research coverage to help investors to fully understand the fintech business. So we expect, yes, to have more research reports and for sure this will help a lot of investors to understand the scale platform that we have.

And that covers the fintech business when you eventually lift the oil business in the United States. Will you also have research coverage there?

Yeah, we will work on that for sure.

Alright, are you planning to host any capital market savings?

Yeah, we think on this right now, but I think the focus should be on the execution again of the operations and then once we have all the products launched and we start seeing some growth, we can then go to the market and explain more about each product, where we are, the portfolio size in each market. these kind of things. But for sure, this is a plan of ours to start working in the next months.

And if you could decide, how would you like the market to view MahaCapital?

That's a good question. In my personal opinion, I would say we have here a nice portfolio with two amazing assets. Of course, the feedback business is a different risk profile. I really love the business itself, the technology, the credit operation. And also I really love how it could be scalable with the size it could reach. I think we already showed to the market the potential, right? We are talking here about a market of multi-billion dollars. So when you think of this, it's a fixed income risk, like a bank, but also with the tech side. So it's a very nice investment thesis. And in the other hand, you have also Venezuela, which just paid $10 million, but can have a huge potential upside by unlocking this value. So, I think it's an amazing combination.

A viewer also asked if you could place yourself in the shoes of an external investor looking at Maha today. What would you consider to be the single biggest risk to the investment case over the next 12 to 24 months? I know you spoke of fixed income risk, for instance.

I think in Venezuela, the agreements is the most important topic right now, so I would this would be the main risk to Venezuela, because the asset itself is very large, very profitable. But I would say on the FinTech basis, maybe some war, some stuff like this, which could have impacts on the interest rates across the markets and potentially default rates across companies. So maybe this is the main risk we see here on the thesis.

Roberto Marchiori, you are the CEO of Maha Capital. Thank you very much for being here and presenting and answering our questions. Thank you, Mike. Nice to see you.