VNV Global AB (publ)

Welcome to the global third quarter 2025 report conference call. On the call today, we have Per Briljot, CEO, Dennis Mohamed, investment manager, and myself, Björn Fonsive, CFO of the company. I'll start with the high-level numbers of the report, and following that, we'll start with the portfolio overview that Per will run. And as a reminder, in the end, we'll open up for Q&A. And easiest to do that in the Q&A function here in the Zoom. We'll address those questions towards the end. Let's start with the numbers for the quarter. So as per September 30th, our NAV stood at 587 million, or USD 4.52 per share, which is down roughly 1.1% in dollars over the quarter. In SEC terms, NAV is about 5.5 billion SEC or 42.5% down 2% from the previous quarter. For the nine-month period, NAV is up in dollar terms 2%, but down close to 13% in SEC given the large FX movements during the year. If you move to the next slide there, we have an investment portfolio that amounted to $652 million consisting of roughly $581 million of investments and $71 million in cash and cash equivalents as per worker M. Borrowings totaled roughly $91 million as per September 30th, but we'll come back to that a little bit later. As you see here in the slide, we continue to trade at the material discount to the NAV. The share price of yesterday was around 23.60 crowns per share, implying a 44% discount to NAV. I could highlight here that during the quarter before the blackout period, we did repurchase approximately 1 million shares before heading into the blackout period. And if we move to the next slide, just a short section on the main contributors to the fair value change. Largest Company continues to be BlaBlaCar, valued at $184 million, our position. Model-based valuation down 8% over the quarter, roughly $50 million. Voi, also model-based valuation, is valued at $137 million, up 7% or $9 million during the quarter. Newman is valued at $37 million based on transactions, so flat valuation. Housing Anywhere valued at $36 million, model-based valuation down roughly 11% over the quarter, or $4.3 million. Breadfast on transaction base, $30 million of flat. And finally, of the six top companies, Boca Direct valued at $27.8 million based on a model, which is up roughly 18% over the quarter. All in all, these six names represent close to 33 SEK per share in aggregate, or approximately 77% of the NAV. And if we move to the next slide, finally, before jumping over to PER, I thought, given the plenty of developments in early Q4, we thought we'd highlight the cash and debt movements post quarter ending. So again, we ended up Q3 with $71 million in cash. Post quarter ending, we received $9 million from the TICE exit and it's expecting the remaining sort of $26 million related to the GET transaction shortly. On October 3rd, we also completed the partial bond redemption of roughly $846 million. So, resulting in sort of adjusted or perform a cash position of $61 million that will take us to a positive net cash balance of approximately $16 million. With that, I thought I'd hand over to Per to go through the main developments and portfolio companies during the quarter. Go ahead, Per.

Thanks, Bjorn. And yeah, picking up on that. So, what you see on the left-hand side here is the actual... portfolio as of the actual end of the quarter. And the one on the right, which looks pretty much exactly the same, but that has all these adjustments that Bjorn just went through, including paying down half the bond. So $16 million of of net cash now which feels great. We've sort of finally gotten out of this sort of debt overhang that we've had and we move into a new investment phase which we're all very excited about. Now I will touch upon these sort of main constituents on the portfolio in this call. So BlaBla, Voi, Noom, and I think also Breadfast, there's not much to say about housing, but I'd use this sort of landing page to just say that housing down 11% is driven a lot by Airbnb. As you know, Housing Anywhere is like an Airbnb type of business in Europe. But in contrast to Airbnb, which is sort of weekends and one week holidays kind of thing, this is more medium term rentals in Europe. And so Airbnb is just a very good peer. And so, but hasn't yet. for whatever reason, hasn't done so well of late in the stock market. So it's had some impact on the parts of our portfolio, blah, blah, car too. But housing especially. Housing in general is doing fine. New management, I think we've talked about that before, which we're very excited about. And they're getting ready to sort of produce some serious growth there, which will be very exciting. But if we go on, the portfolio is, as Björn talked to you about, carries an NAV, which has our shares trading at like a 44% discount. We move into new investment phase and there's just nothing new. that we can invest into than the portfolio that we know so well and that we're so bullish about, even from the NAV level. You can buy that sort of 45%, 44%, 40 to 50% discount. It's very hard to find anything that matches that. So when we did get this cash, taking us to net cash, we did restart this buyback program that we've been such... large participants in over these past decade or so and that feels really good. So a million shares, around a million shares bought back before we went into the blackout and that continues now that we're out of the blackout. We are It's difficult to pinpoint down why this discount is there. In some ways, we think it's great because it's a good opportunity for us to invest our shareholders' cash in. But one thing maybe was the debt. The debt is now behind us. With net cash, I mean, we pay down half the bond and the other half remains, but we have cash to pay that down. So we're in net cash. So maybe the news of that just takes a little while to work itself into the market. But we also, this kind of discount sort of in our minds, sort of maybe reflective of situation which is stressed for something maybe stressed for cash maybe there's a portfolio that's in needs of cash that's not our portfolio this portfolio is roughly eight eighty percent of it is uh a bit positive we carry voy in this figure here with an ebit posit We've talked about that before. You need to talk about EBITDA. The rest of the portfolio, they don't depreciate and carry these sort of fixed assets. So you can talk about EBITDA. But yeah, and this is down somewhat when we've taken GETTA out of the portfolio, but it's roughly the same. It's just... percentage points behind below 80. So this is not a portfolio that is in sort of dire needs of large cash investments just to maintain our sort of ownership in these companies. On the contrary, it's a portfolio that sort of as of these past years and continues to sort of be profitable and beyond that also a very growing profitability. We showed this at the CMB and we like just to remind people that the growth in the portfolio and this is at the revenue level is accelerating between 24 and 25 you're looking at 40 plus growth this shows you our pro rata of the top six companies and so and in fact and we don't have that here but if you if we allow ourselves to with sort of very sort of sustained projections look two years out, the earnings growth profile of these companies has grown to a level where if you compare our prorata of these six companies, EBITDA, EBIT for boy, and you compare that to the market value of BNB, you're looking at, we're trading at an earnings multiple of 10. for these six companies. And then you get the rest, the remaining sort of 50 companies or so for free. And these companies are not worth zero. These are, you know, they may be smaller stakes compared to blah, blah, blah, etc. But Flow, as you know, raised money at a billion dollars from General Atlantic, Aura just made a big round. Ovoco is Europe's leading marketplace of spare cars. for spare parts for cars, et cetera, et cetera, et cetera, ties we just sold to eBay. So this portfolio, which you get for free, if you think with a multiple of 10, is a portfolio that's very much alive and doing quite well. And also back to this sort of, yeah, it's difficult to value unlisted assets when there are no perfect peers in the listed market. But also within this sort of the rest of the portfolio kind of notion that we're talking about now, we have had also markups over this last period where, I mean, there's been transactions in these three names, for example, which have been at a material sort of higher mark than where we were carrying them at. Thais was for cash, an exit to eBay. Jove, the company that's Disrupting hair-colored industry, as we know, big 100 billion euro sort of industry. Juvis disrupting that. They raised money at the material uptick from where we had it. Or, of course, we have a very small stake in this huge wearable company. But they did raise money and they raised it at a large amount. premium to where we're carrying at. So it's good that we think there's upside in our NAB. Just a few points on BlaBlaCar. We sort of Reminder, I think everyone knows what this is, but one way to look at this is that it's a marketplace for long distance travel. So there's a supply of cars, but also buses and in some smaller way, but also trains. all suppliers of long distance sort of means of travel. And they meet a very, very fragmented demand base that is looking to sort of travel long term. I think those of you who have sort of followed us for a while, I think you'll recognize this picture, which I think is especially good. This is if you come to the Blah Blah office, this is sort of in the entrance. And every little dot here shows you sort of basically a blah blah car trip happening and so you can see sort of that across europe of course with a heavy sort of emphasis on france there's just a lot of activity going on but importantly also in in in emerging markets And we sort of highlighted India. Here we can see sort of patches of large activity, especially in the north. Mexico, but also Brazil a lot, especially along the coastline. We don't show Turkey on this map, but there's just 150 million passengers in 2025. I mean, we haven't closed this year, but we're looking at that kind of figure. which then is sort of the decalc of that this is every second five empty seats are filled. It's a fascinating thought. And yeah, the other thing that's important to sort of remember in BlaBlaCar is the sort of premium service that they sell. In some routes, there's increasing competition from city center to city center. At some parts of the year, you can find cheap tickets to go by train, for example, from Paris to Madrid. Now, those train tickets are probably below cost, so I don't know how sustainable they are. But importantly, I think it's worth... For us to sort of double click on the fact that BlaBlaCar is not city center to city center. It's of this, as you see on this picture, it's from Cueville, which is like this little town outside Rouen. And it's a trip from that little town outside Rouen to Orvaux, which is a little town outside Nantes. And if either you take a blah blah, a carpool product, takes three and a half hours, cost you 25 euros. Your alternative is this four stopover sort of journey. You have to take the bus into Rouen, the bus into Paris. Metro inside of Paris to go from Saint-Lazare to Montparnasse, train down to Nantes, and then another bus or a boat. Takes six hours, plus four times more. So this is why I've been using this service of late just to get re-engaged with it. And this is what the customers of this company love so much. It's cheaper and it's just so more convenient. Just summing up, there's not that much going on around BlaBlaCar in the quarter. We marked it down a little bit. Multiples were down. I mean, peer group multiples were down. Airbnb is, of course, a big sort of a very logical contributor to how we mark this. And as I was saying, Talking about earlier today, it's also where, and we'll come back to Voi, Voi is sort of growing and it's growing in sort of money, revenues and earnings. At BlaBlaCar, there's an enormous amount of growth happening, but it's not growth that sort of transforms itself into growth. in revenues and earnings over these next 12 months. We look out for the next 12 months. But Brazil and India, which we show here, contribute a lot to this enormous growth of passengers. Passengers grow when there's enough liquidity on the marketplace. This enormous GMV that you have in just these two markets will allow the marketplace to start to monetize And then this not only grows in revenues, but it grows in revenues that falls directly down to the bottom line. So this being marked down does not mean that we're less enthusiastic about the prospects of this company. And as we go forward and as these unmonetized markets, which carry a GMV to the order of a quarter of a billion dollars, as that starts to be monetized, we'll see, you know, that will the growth will transform itself into something that you can pick up in a financial model over the next 12 months, which doesn't capture all the stuff that's going on at the company today. With that, I thought if Dennis, you could take us through a few words on what's going on at Voi.

Yes. Thank you. Thank you, Per. Voice had a very strong performance this year with, as Per alluded to, revenue growth accelerating while margins have expanded significantly, which I'll get to in a minute. Looking at the VMV valuation in Q3, our EV EBITDA model is up on VOID this quarter, while the peer group multiple is actually down. As a reminder, the pre-discount multiple, which you find in the report, sits at 14.4 times next 12 months EBITDA. And then we always take a 10 to 30% discount. So the multiple in use is not higher than 13 times next 12 months EBITDA for Voi. But the company's strong performance has increased the outlook and our model is therefore up around 7% in Q3 for Voi. This improved outlook is, I should say, further confirmed by the 40 million euro bond tap, which the company completed a few weeks ago, which is funding 2026 vehicle capex. The bonds were placed above par at a price of 104.75% of the normal amount. which corresponds to roughly 500 basis points until maturity, given that the original framework carries a floating interest rate of three months plus 675 basis points per year. And then 40 million euro will be used to buy new e-bikes and e-scooters for 2026. In Q3, the company continued to win tenders in cities such as Edinburgh, Essex and Glasgow and a couple more. But perhaps most importantly, and as Per alluded to in the management director intro to the report, we have now launched the e-bike offering in Paris. Paris is a tender we won earlier this year, but as of October 1st, Voi is now operational with the e-bikes in Paris. And just within two weeks, Paris is already a top 10 city for Voi. And we expect it to become the company's largest city with double digit euro, millions of euros in revenue contribution. We're very happy, not only about the win, but also about the very strong start in Paris. Last on this slide, as you can see on the right-hand side of this slide, Voya actually yesterday announced that they have reached 400 million rides since inception. It took the company roughly eight months to get to the first 1 million rides. I was working at Voi at the time, so I witnessed it firsthand. It then took around three and a half years to reach the first 100 million rides. And Voi has now completed the last 100 million rides in less than a year. So, yeah, really compounding at its finest, as you can see on the rightmost graph here. If we switch to the next slide, what is very encouraging is that this growth in usage is also reflected in the P&L. As seen in the leftmost graph, revenue growth has accelerated significantly in the last 12 months ending Q3 of 2025, voice delivered around 163.5 million euros of net revenue. driven by an increase in the fleet size, which you can see on the line graph to that graph, but also an increased revenue generation per vehicle. So we're actually generating more, if you will, like same store sales, despite increasing the fleet quite significantly. The company has grown this top line while expanding the vehicle profit margin. This is the second graph that you're seeing on the slide. And this is the margin after charging logistics and repair costs, essentially the gross margin of the business, which now sits at 59%. An improvement that's driven by both improved vehicles, but also just continuing to haunt operational excellence at Voi and heavy usage of data and everything from predictive maintenance to fleet allocation decisions to make sure the fleet is where the users are at all times. We're also seeing a significant increase in the adjusted EBITDA growing to 28.3 million euros, which is approximately 17.3% margin in the last 12 months, primarily driven by the fact that central overheads have essentially remained flat. I think they're even down a bit despite this growth on top line, really showing the operational leverage in Voi. Looking at EBIT or adjusted EBIT, the company has delivered around 5 million euros of adjusted EBIT at a roughly 3% margin in the last 12 months. And we're seeing this margin expanding significantly year over year as well. This was negative in the previous LTM period. The last thing to highlight on Voi, which is not shown on this slide, is that cash flow from operations grew roughly 67% in Q3 alone this year, reaching an all-time high of 19.8 million euros of positive cash flows. One should remember this is a seasonal business, with Q3 being the seasonally strongest quarter, but it is very encouraging to see Voi delivering almost 20 million euros of cash flows in a single quarter and a real sign of strength for Voi. That was all I had on Voi, but I think I'll continue with a couple of words on Neuman. As a reminder, Neuman is a UK-based online health clinic offering personalized care on one digital platform. They do everything from clinical guidance, medication, diagnostics and supplements. And I would say the biggest therapeutical area today is weight loss, primarily through GLP-1 medications, and has been for the past two or three years. Operational momentum remains very strong at Neumann. The company grew around 130% last year with Positive Ibida and is on track to deliver similar growth in 2025, also with Positive Ibida. So looking over the last two years, we're looking at more than 5x growth on top line for this business. As already covered last quarter, they secured around $60 million of financing in Q2, consisting of both an equity round led by BigPi Ventures and a growth debt facility from HSBC Bank. um with the new funds raised the company is now looking at investing into their platform in diversifying revenues and expanding their footprint and in q3 vnv values its stake in human on the back of this transaction as a as a heads up since the transaction is denominated in in great british pounds our usd mark of newman is down around two percent this quarter but this is driven solely by fx on a On a GBP basis, the valuation is unchanged since it is on a transaction. Last during the quarter, just worth highlighting, Eli Lilly increased their prices on their GDP1 products. And while this at least initially created some volatility in the market, the impact on Newman has been quite limited. And we're happy to see that the company is trading in line with their ambitious budget year to date. That's it for me.