VNV Global AB (publ)

Hi everyone, welcome to VNV Global's report presentation for the second quarter 2025. On the call today we have Per Brilja, CEO, Dennis Mohamed, Investment Manager, and myself, Björn von Sievers, CFO of the company. As per usual, Per will start with a short intro of the developments. followed by an overview of the more meaningful portfolio constituents. I will go through some of the movements of the portfolio during the quarter, and after that, we'll open up for Q&A. And as a reminder, if you want to ask questions, please use the Q&A function here in Zoom. I will try to address your questions towards the end. With that, I hand over to Per for the intro.

Thanks, Björn. And hi, everyone. Thanks for joining. Well, up not quite 6%, but nearly 6% in dollar terms.

That gives us just shy of $600 million of NAV different things going on in the portfolio. We'll come back to some details, but on the whole, you know, some transactions have been made, and if you put them all together, it's a slight premium to NAV. Some are a little bit below our NAV, some are a little bit higher, but if you put them all together, it's slightly higher. I think, I feel... only that you know our nav is is good it's it's a reflection of where these things trade uh and uh of course we think i think there's a massive upside from that nav uh over time um and um Yeah, we'll come back to some details to try to highlight in the report some stuff. It's not an enormous amount of news in the big names. We'll come back a little bit to what's been going on in the big names. Just try to highlight a little bit also, as I typically do, these smaller parts of the portfolio. They don't matter so much over the course of this. They won't move the stock price or the NAV maybe more. better put over the short term. But, you know, in that sort of future period when we've sort of IPO-ed and or sold a lot of the bigger names, you know, the next voice and blah, blah, et cetera, in the portfolio are already there. And, you know, Newman's obviously large transaction in Newman, by the way, which we'll come back to, which we're very happy it's a fast-growing company. And then... with new cash, they can sort of capture more opportunities. But Numa is already there, try to highlight that a little bit, but also a tiny company like Juve, which is something that I think will grow into something really meaningful in the portfolio over time. So just try to point to those in the text here and sort of get you acquainted with them, because I think they'll be important sort of drivers in the future. With that sort of very high-level short intro, I hand back over to Björn for the numbers.

Thank you. Yeah, so just a short overview of the balance sheet here. So we have an investment portfolio of approximately 49 crowns per share, cash equivalents of 1.2 crowns per share, and then the debt here, which is equivalent of 6.5 crowns per share, which gets us to the NME per share of 43.39 crowns. And at the end of the quarter, that was 61% discount. The share trades now are a bit up, but we're just still above 50% discount, so the discount is still large. Over the quarter, if we move to the next slide, we can walk into the large portfolio constituents, starting with BlaBlaCar, up slightly 4% over the quarter or $7.6 million. still represents roughly a third of the portfolio. Main driver here is FX movements and some multiples. Going down to VOY, a larger increase over the quarter, 16% fair value change, $80 million. The company is performing well and multiples and FX has contributed to this movement. And then thirdly, we have Get, who for the past at least 15 months or so has been marked at the previous transaction that we're no longer doing. So this we now moved over to EBITDA multiples model and this is up roughly 13% or $11 million. over the quarter, mainly driven by multiples and overall performance at the company. Further on, as Per alluded to, Nomen down 15%. Here we have a new transaction. Similarly, in Breadfast, on the opposite, it's up 30% on the back of a new transaction in the company. Then in the longer tail of the portfolio, there's up and down, but in stone, there's no material movements to speak about growth. Looking further down here on the debt side and the cash side, of course, the outstanding bond is set on the denominator. So it's slightly up over the quarter due to FX. And then cash is up. And that's primarily due to the fact that we exited the OpenSuk investment, which were held through this intermediate company called Merrill. Merrill sold its stake in OpenSuk and distributed it. cash to its shareholders. So we received $6.2 million in dividend during the quarter. That leaves us with the NVE, as I pointed out. And with that, I thought I hand back to Per to go through the portfolio.

Yeah, and just starting from a very high level, we typically show this slide, and this is not much of a change from the last boardroom we spoke, but just over 80% of the portfolio is EBITDA positive, and that's now including BOI, because EBIT is the real one to talk about, and BOI has become sort of positive also on this earnings before interest and tax. So a portfolio that's not craving cash. I mean, Newman, for example, raised some cash for aggressive reasons, not for defensive reasons, and then doing it at a valuation which is not... one um which is sort of in fair but but yeah you get the picture it's uh it's uh it's uh important we think to show that this is a portfolio that's profitable at a proper ebitda which is in all cases next to uh boy is more or less cash though so strong uh and the portfolio again there's not much of a change here uh some movements up and down that's beyond Took it through. Voice increased to just under 20%. I mean, strikingly here, it's like 60% of the portfolio is mobility, you'd say. And that sort of increases if you go into the other parts. We have some mobility things there that are really... picking up pace, like no traffic, which you could categorize as a mobility play. I mean, all of you will know we're not mobility investors per se. We like to invest into network effects and this sort of high-barrier strategy that that gets you going with. But Yeah, we're starting to sort of get some traction. I mean, we have a pretty serious mobility portfolio and are continuously sort of excited about all the stuff that's happening there. And then some talk about Voi and the... the stuff that's happening around Voi and the success it's having in increasing its presence across Europe. Most importantly, Paris, which is usually positive. But as usual, we have a couple of slides on the different sort of holdings. And first out, BlaBlaCar is not that much going on this quarter. I mean, there's a lot of stuff going on, but it's just nothing big or dramatic to write about. And it's, you know, from that sort of quite tough 2024 when these energy savings certificates were taken out of the system and having the company sort of spend a lot of time trying to deal with that and sort of get the company sort of organized to live without that sort of contribution. And now it's really back in a good rhythm. And yeah, multiples are not moving that much. So it's sort of a flat quarter, but the company is sort of beating its budget. Growth is, of course, not so dramatic in Europe, but that's a very profitable market. But the growth in emerging markets is much more dramatic. exciting and and really really strong and continues to be so uh and uh which sort of gets that whole all those markets are ready for a for a for a for for serious monetization down the road uh i don't know to the extent that you follow uh blah blah on linkedin but i can recommend there's some interesting stuff that they put out and you will have noticed that, if you do, you'll notice or I can recommend that you look at it. So Nico, the CEO of the company, has started sort of getting involved in the sort of climate debate in France. And so you could sort of see them positioning themselves for next year's budget. And the fact that, you know, these energy saving certificates used to be very popular sort of tool and sort of trying to lobby around that idea. those maybe should come back. We for sure do not have them in our models, et cetera, coming back. But there's some effort being put into it. And of course, that's France. I mean, in Spain, as you all know, we've talked about for a while, they've been recently introduced and they're doing great. So just at a smaller level than the sort of peak years of France. much more fun stuff or not that BlaBlaCar is not fun but Voi is some exciting stuff going on so Dennis shoot

Thank you, Per. Yeah, as mentioned by Per and Bjorn in the beginning, we've written up VOY around 16% during the second quarter. And of this write-up, roughly half is driven by multiples and the forecast improving on the back of some tender wins, which I'll mention in a minute, and strong performance year to date. But also half is driven by FX as the US dollar has depreciated against the euro during the quarter. Voi has had a very strong start to 2025. They closed the first quarter with around 139 million euros of net revenue. They closed the quarter with around 21 million of adjusted EBITDA and 3.3 million in adjusted EBITDA in the last 12 months ending Q1. During the second quarter, the company has won several key tenders. The main one, which we also press released during the quarter, is the win of the Paris e-bike tender. Voya is one of three operators to win this license of 6,000 vehicles to start with, which will probably increase during the duration of the contract, which is four years. And this contract is positioned to make Paris the biggest market for Voi globally. So it's a very significant win and one that we are very happy about. But it's also an important win as it expands Voi's e-bike fleet, which has been a strategic priority for Voi in the last year. And another tender that was won during the quarter and already launched is also in France. It's the Grenoble tender, which was previously held by DOT, but was now awarded by the city to Voi. It's 2,500 vehicles split 50-50 between e-scooters and e-bikes. So once again, proving the importance of having an e-bike offering, which Voi has strategically invested into in the last couple of years. If we go to the next slide, Per, and we've seen this slide before, but what we see on the leftmost graph, the company keeps growing top line at a faster pace than the fleet size, which is the black line that you're seeing there. So fleet size growing to 96,000 vehicles and revenue to 139 million euros last 12 months and in Q1 of 2022. Five, which means we're actually getting more revenue out of each vehicle that we're putting on the streets. This is done at the same time as the company is generating a higher vehicle profit margin, which is essentially the gross margin of the business, which is now at 58%. An EBITDA margin of 15% and an adjusted EBIT margin of 2.4% in the last 12 months ending Q1. This is very impressive in our view because they're growing not only top line, but also profitability simultaneously, which we're very excited about. We're looking forward to the company issuing their Q2 report. As you all know, this is very seasonal business, so Q2 is one of the most important quarters of the year. This will be released on July 29th, so in a little less than two weeks. These numbers will be available in voice-owned channels, but we will also make sure to issue a press release from VMV to make you aware when the numbers are released. With that, handing back to you, Per.

Thanks, Dennis. Over to Gett. That's the biggest development over the quarter. The transaction whereby we agreed to sell this company to Pango was discontinued. We withdrew the application from the anti-monopoly authorities in Israel. basically because it was became pretty clear that it wasn't going to get approved and that's a whole uh that's a whole sort of other discussion uh but uh which which is which is uh which is much which is which is which we can spend a lot of time on but that's how it is uh so we're obviously i mean i think we want to send a clear picture that this company is doing well and and we're we're happy to keep owning it. We are we sort of set in motion the making the balance sheet here more efficient by preparing the company to do like one of dividends of we'll call it 30 million dollars or million plus really uh and well you know we own a little bit under half of the company as you know so uh so giving us material cash flow that this is something that it's you know we see that coming uh next quarter or latest latest latest the q4 but i really think next quarter um so so the companies can you know has obviously been in this sort of state of constant while it's been working on this transaction, but now that that's sort of... discontinued and you can run the company to sort of do the stuff that should be done for example making the balance sheet more efficient and the company continues to do well i mean obviously with these sort of terrible violence and these wars that have that are come and go a little bit in israel hopefully stopped now but uh then you clearly affects this company because the country goes into like a COVID kind of a situation when there's schools are closed, people are at home when they're under attack and there's obviously less traffic on the street, if any traffic. But both country and sort of life in Tel Aviv and so also this company has really sort of proven their strong resilience and ability sort of to jump back into normality very, very swiftly once things quiet down. So the company continues to really do well. In this report, you may have noticed we gave sort of a cash figure, cash equivalents end of June was just under $70 million. Now, I should just note, I mean, first, that's unaudited sort of management accounts, but then it's also just to give you a flavor of the cash generation. So I think the last figure we gave you was for the end of March, and that was $60 million. So You get a sense of the cash generated over that quarter, but that cash per se is not to be sort of taken for something that can be immediately kicked out to shareholders. There's like a work, you need some working capital in the company as cash comes in from the taxi drivers and needs to go out to the taxi drivers and all of that basically. So the sort of distributable cash is less, but this gives you a sense of the company and how it's doing well. um and so that's one thing um and um yeah i think we're you know we're we're a company that's been run over the course that's been run well operated well over on the course of this year really since we are a year and more since we started uh talking about this and um we are, and the company, yeah, it's been run well, but now it gets an increasing ability to sort of continue to do some stuff that hasn't been able to be executed when it was sort of under, in a very strict sales process. It's not for us to sort of comment, but that's, uh hi just also you may have noticed i mean it was a highlight that in the israeli press uh there's been a a lot of sort of rumors about the company uh as being close to yet another sort of re-reject transaction uh and uh and uh Those are rumors, and you can sort of follow them in the Israeli press. We're not here to comment more than what can one say. Everything is for sale at the right price all the time kind of thing. But most of all, the company is not a disaster that this transaction is not done. The company is doing well. It has capacity and ability to kick back cash to shareholders, which is fantastic. which is, of course, a sign of good strength. So that's a little bit about GET. And finally, Newman. Yeah, that is just that you maybe go through, Newman.

Yeah, as you all know, Neuman is a UK digital health platform specializing in obesity, but also more broadly a personalized healthcare platform for everything from hair loss to erectile dysfunctions. Since inception, Neuman has now served more than 650,000 patients. And this translates into the company growing revenues more than twofold last year to roughly $19 million with positive EBITDA. And management now guides for around 150% top-line growth in 2025. Very impressive. During this quarter, Neumann also announced that they have secured around $60 million of new financing, comprising of an equity round led by BigPi Ventures, but also a growth facility from HSBC Innovation Banking, which provides ample resources for the companies to continue to accelerate their growth. Um, the new capital will enable further expansion into everything from a female health. to deepen the screening and other preventive care programs, but also further develop Neumann's AI enabled or data enabled platform, which they offer their patients who subscribe to their service. We carry Neumann at this recent transaction value, which was mentioned earlier, was done at a small 15% discount to our Q1 model valuation for Neumann. With that, back to you.

Thanks. I think that sort of concludes our introduction to this court report. I hope it's clear. Let's open up for Q&A at this point. Björn, do you want to run through how that works again?

Sure, absolutely. And yeah, a reminder, there's this Q&A function in Zoom here where you can type in your question and we'll address it. We received a few questions. I'll start with one here on a specific question on what's been driving the valuation change in housing anywhere. and here the valuation is primarily change in farewell is primarily driven by the multiples the peer multiple in that model I hope that's clear and then here's another question to pair I guess a bit more broad given the sale of get did not happen can you talk a bit broadly on how you see the current debt and which matures in 2027 and which avenues you have to solve that? Or how do you look at that and manage it over the next two and a half years?

Yeah, I feel confident that by the end of the duration of this outstanding bond, there'll be multiple sort of exit opportunities in the portfolio. I mean, obviously get... And if not a sale, then get, as we just talked about, can produce cash to shareholders, one of dividends, and then as a cash generative company can sort of continue to pay cash. So that's one stream of cash. beyond the actual sale of our entire stake, sale of the entire company, or in a partial sell down of our stake. So there's those sort of opportunities. And then over the course of the two years of the remaining duration of the bond, Nothing has been decided, but some big chunks of the portfolio are getting mature, which opens up for exit opportunities, basically. And so Blabla has obviously been there for a while. There's been a lot of talk about an IPO at some point over the next two years that's entirely a possibility. Void, perhaps even clearer, I would say. And of course, Dennis took you through this sort of the strong sort of performance of Neumann, which would allow that also to all those three companies, you know, and obviously get to. But so four companies are in a position to sort of maybe list and or to be sort of attractive for a broader set of investors to get involved in. So that's the way I think about the debt and the actual repayment of it, whenever that may be. So we'll continue to work with these companies where they're not sort of for sale per se, but the portfolio will provide a lot of opportunities over these next two years to become debt-free.

Thank you. Another question here is from Ina Djupsund on VOI. Is all the focus on organic growth or is there an M&A track here as well? If we can comment on that.

I think in general terms so you know blah blah obviously major acquisition last year with Obilette, which is a big contributor to the company. And BlaBla's had a history of M&A, and I wouldn't rule out that they may find acquisition opportunities that are equally synergetic with their current business, especially in emerging markets. And Voi, maybe less so, but I should never say never, but that whole universe seems to be sort of narrowing down to lime and boy now, and others are sort of shrinking and overlaps are less obvious, basically. And in the Newman space, it is, I mean, the sector has given us a couple of different sort of M&A deals over this past sort of, Six months, really. Big US player, Hymns, acquired some companies, et cetera. So there's that stuff going on. But I don't think our performance or our portfolio companies' performance and the way we look at them and the way they sort of develop is not sort of contingent on that they do some crucial M&A. It's more organic.

And I can maybe add to that on Voi, which I think specifically was the question for me now. I would say Voi is in a very strong position now, as we alluded to, they're growing, they've raised the bond, which enables non-dilutive kind of growth financing as well. And they're the only company in that sector that has that kind of lower cost of capital, if you will. I would say we're always looking, we're always talking to other players in the industry, but But if anything, it would have to be at the, you know, Voi would be the consolidator and the situation is quite different from when Voi was unprofitable and maybe you needed to do M&A to get to sufficient scale for the cost base of the business. That has very much changed in the past kind of 12, 18, 24 months. And so now Voi has a, Has a very good kind of growth engine, but at the right terms, anything can happen, but there's nothing imminent, I would say. But the main focus is organic growth, where we see there's ample headroom to continue growing in the markets that Voi currently operates in.

Thank you. I'll take another follow-up question here on housing anywhere. Housing is down 6% year-to-date and the revenue multiple we disclosed in the report suggests a drop in revenue this year. Do you see revenue declining? No. A clarification. The multiples we disclosed in the note package in the report are the unadjusted peer group multiples we use in our model so that's the median multiple of the peer group from that median multiple we adjusted with you know various discounts typically between 10 to 30 percent so the actual multiple in the housing anywhere model is lower than 5.1 and the company continues to grow on top line So that's another short answer there. And then maybe, Dennis, I mean, we mentioned a few growth numbers for Newman recently. Could you elaborate a little bit about that and how they interlink?

Yeah, happy to. So I think there's a question around the growth figure that I mentioned now, which is, that management expects 150% growth for Newman in 2025. That is a figure that they're tracking in line of year to date, so in the first six months, so rather high confidence that they will hit that number. We, in the Q1 report, mentioned that they grew Q1 2025 versus Q1 2024 roughly 200%. That was primarily due to lower kind of Q1 2024. So the growth at the beginning of the year was close to 200%. But for the full year, we anticipate 150%. We never shared a projection at the beginning of the year. We only shared kind of what the Q1 growth was. So I hope that clarifies. But in summary, 150 is the number to focus on.

Thank you. I think we've touched upon essentially all of the questions I see here in the list. So if nothing else, I'll leave it back to Per. And then, I mean, of course, please reach out on email or give us a call if you come up with other questions. But Per, please.

Yeah, thanks Bjorn. Bjorn, please reach out. We have Capital Markets Day planned for September 16 in London and that will be streamed as usual. So we really hope you join us then. All the larger companies have confirmed their attendance. It'll be a good opportunity to get an opportunity to ask questions to the guys and girls who run the companies. And so that's the next sort of interaction. We'll do this again when we issue our Q3 report, which will be super exciting. So thank you very much. And yeah, don't hesitate to reach out if there's anything you want to talk about.

Thank you. Thank you.