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VNV Global AB experienced a 2.23% rise in its stock price following its Q1 2025 earnings call, driven by strong growth in its portfolio companies, despite broader market challenges. The company’s NAV declined by 11.17% in SEK, yet its strategic focus on portfolio optimization and potential exits has kept investor interest buoyant. According to InvestingPro data, the company’s stock has shown significant volatility with a beta of 1.92, making it particularly responsive to market movements.
Key Takeaways
- VNV Global AB’s stock increased by 2.23% post-earnings call.
- Portfolio company Neumann reported a 200% YoY revenue growth.
- The company is trading at a significant discount to its NAV.
- 81% of the portfolio is EBITDA positive, indicating financial stability.
- Macro volatility and tech sector challenges continue to impact the market.
Company Performance
VNV Global AB’s performance in Q1 2025 was marked by robust growth in its portfolio companies, notably Neumann and BlaBlaCar. Despite a decline in NAV, the company’s strategic initiatives in portfolio optimization and potential smaller exits have positioned it well in a challenging market environment. The company’s strength in shared mobility and digital health sectors has been a key driver of its performance. InvestingPro analysis reveals several promising indicators, including a strong current ratio of 5.82, indicating robust liquidity. Subscribers can access 6 additional exclusive ProTips and comprehensive financial analysis.
Financial Highlights
- NAV: 5.7 billion SEK ($570 million)
- NAV per share: 43.36 SEK
- Quarterly decline: 11.17% in SEK, 2.5% in USD
- Cash and cash equivalents: $13.6 million
- Outstanding bond: $84.7 million
Market Reaction
The stock’s 2.23% increase suggests a positive investor sentiment, likely buoyed by the strong performance of portfolio companies and the company’s strategic direction. Currently trading at $1.72, between its 52-week range of $1.42 to $3.17, VNV Global AB shows potential for recovery despite being under pressure from broader market challenges. InvestingPro’s Fair Value analysis indicates the stock is currently undervalued, with analyst targets ranging from $2.60 to $3.18, suggesting significant upside potential. The company’s Price to Book ratio of 0.39 further supports this assessment.
Outlook & Guidance
VNV Global AB is preparing for potential liquidity use for stock buybacks post-debt resolution. The company anticipates a GET transaction closing in Q2 and sees an improving IPO landscape by mid-2026. The upcoming AGM on May 14th and Q2 earnings call on July 17th are key dates for stakeholders.
Executive Commentary
CEO Per Billotte highlighted, "81% of the portfolio is EBITDA positive," underscoring the company’s financial health. He also noted the expectation of "50,000,000 passengers on this platform during the course of 02/2025," indicating strong growth potential for BlaBlaCar.
Risks and Challenges
- Macro volatility remains a key concern, impacting investment strategies.
- The tech sector’s challenging sentiment could affect portfolio valuations.
- Trading at a 60%+ discount to NAV may raise investor concerns.
- Potential regulatory risks for Neumann, as discussed in the earnings call.
Q&A
During the earnings call, analysts focused on the details of the GET transaction and potential regulatory risks for Neumann. The management clarified portfolio growth expectations, reinforcing confidence in the company’s strategic direction.
Full transcript - VNV Global AB (VNV) Q1 2025:
Bjorn Franzous, CFO: On the call today, we have Per Billotte, CEO Dennis Mohammed, investment manager and myself, Bjorn Franzous, the CFO of the company. I will start with a brief intro to the quarter, and then I’ll follow-up with a quick run through of the financial highlights and the main drivers of the NAV movements during the quarter. Following that, we’ll do a portfolio rundown, led by Per and with the help of Dennis. And with that, I’ll hand over to you, Per. Before that, I just want to remind everyone, if you want to ask a question, use the Zoom q and a function, and we’ll address those towards the end.
K. Please go ahead.
Per Billotte, CEO: Thank you. I’ll flip some slides here. Yeah. So welcome, everyone. Thanks, Bjorn.
And, yeah, it’s sort of an uneventful quarter. We’re down two and a half percent in dollar terms. Bjorn will go through the details of how sort of that development stacks up. I it’s sort of we were speaking about this over the course of the day and earlier, but it’s sort of, you know, obviously, the sector we’ve been we are in sort of had that big sort of move over years. And then on the back of the Ukraine war, capital cost going up, sort of big move down, big move up, big move down.
And it’s sort of from it’s reminiscent from earlier sort of booms and and busts, if you will, that, you know, it takes a little you you know, you it it takes a little time to sort of to sort of gather, you know, new momentum to go up again. But it feels like we’re we’re in that sort of phase where the it’s sort of bumbling along at the bottom. I don’t I don’t know. Famous last words and everything, but that’s certainly I I I think it’s fair to say I that’s that that that’s that’s certainly how what it feels like right now. So sort of a flattish quarter.
Of course, macro wise, a ton of stuff that’s going on. And and to the extent that you sort of see us and the sector, you know, or the part of the capital markets that we are involved in as high risk. I I mean and that’s that’s, you know, somewhat debatable, I think. I mean, as we’ll show later and as we’ve shown before, 80% of the portfolio’s earnings positive, EBITDA positive. So, of course, once upon a time, those companies were very young and did not make money, but they do make money now.
So I I it’s it’s, I guess, at least lower risk portfolio than it was or, you know, or or or or other portfolios which are not earnings positive income positive. But but, nevertheless, you know, when when there’s volatility in the world, like, I guess, it’s fair to, you know, that that that higher risk assets sort of get sort of not prioritized. And, of course, there’s a lot of movement in the world with the stuff that’s going on in The US and the big currencies and big asset classes moving around very sort of violently. So from that perspective, I guess, you know, we’re somewhat affected. But given that the portfolio is is sort of earnings positive, then it’s it’s you know, it’s not like, you know, one of our larger holdings sort of absolutely needs to access capital markets now and capital if the you know, when capital markets seem sort of open, but but to the extent that they were are not or certainly IPOs here in Stockholm, for example, or Swedish based companies, I should say, have been sort of postponing their IPOs.
So at least there’s some some there may be some activity around capital around sort of our our part of capital markets. But when IPOs gets pushed off, it’s a sign of of that they’re somewhat closed. But it so it doesn’t really affect us. Excuse me. So the other thing we’ve been trying to highlight is that that the the fall in the dollar doesn’t affect the portfolio as such.
Most if if if most of our portfolio if you if you if you look at our NAV and you you you weigh the portfolio on the back of of of of the NAV or the revenues, you know, we most of this, you know, our revenue, so to say, is in euros. It’s 40% in euros, and then we got some pounds and and shekels, etcetera. And it’s it’s only sub 10% that is in US Dollars. So so not a big effect there. We, of course, have this big chunk of cash coming our way on the GET transactions, and I’ll come back to that when we talk about GET.
But but, really, apart from the sort of if the dollar is gonna go down by half, that you know, if that’s if that movement is very violent, then, of course, you know, all capital markets sort of stop for a while. But but if but if that’s a smooth sort of you know, if if the dollar depreciates over in a smooth smoother way, then then then then our portfolio at large is not that affected. Anyway, that’s a that’s a long winding intro to some stuff that seems sort
Ramil, Analyst, Danske Bank, Danske Bank: of very
Per Billotte, CEO: topical around capital markets in general, but but but us specifically. So we’ll we’ll come back to more details. But and and and on that detailed note, we’ll let’s go over to to to your to to our balance sheet and NAV movements here.
Bjorn Franzous, CFO: Sure. And as Perry showed on the previous slide, so NAV was 5,700,000,000.0 SEK or $570,000,000 as per March. And this corresponds to a non per share of some 43.36 crores, down 11.17% in SEK and down 2.5 in dollars. So so the FX moving due during the quarter, and this decline a small decline in dollar terms of the NAV is mainly driven by Blablacore, our largest holding, as well as FX, and then somewhat cushioned by by by Voy who’s moved opposite direction upwards on the upside. Cash equivalents cash and cash equivalents as of March 31 stood at some $13,600,000 compared to 15.7 in, at year end.
And, big mover here, borrowings, which is our outstanding $850,000,000 siek outstanding bond. That increased to $84,700,000 as of q one compared to July as of year end. And highlighting here also that we’re currently still trading at large discount to NAV, 60% plus. And if we move to the next slide, just highlighting the top top companies here. So so BlaBlaCar was down 8% driven by lower peer multiples and and the continued headwinds in France related to the energy saving certificates, which Per mentioned in the MD intro.
Blabla car represents approximately 14.7 crowns per share or 34% of the NAV. VOI, on the other hand, moved upwards. The valuation moved higher because I mean, driven by strongly operational metrics, also slightly higher peer multiples, and voice were approximately 8.4 SEK per crowns and some 20% of the NAV. GET, again, remains flat, still valid on the basis of the ongoing transaction, which I think Teo will touch upon later on. And the deal, again, is still under review by the Israeli Competition Authority, represents on 6.4 crowns per share or 15% of the NAV at this transaction.
And in total, these three largest holdings, BlaBlaCar, Voy, and GET represent just under 70% of the total NAV. Below those, there’s little absolute movements, some larger relative moves in the portfolio, but I thought I’ll skip that and between two specific holdings in the q and a, if relevant. But with that, I’ll hand over to Per and Dennis, who will go through a summary of the larger holdings and and the developments here in the quarter. Thanks.
Per Billotte, CEO: Yeah. So as Per said, we still trade at a at a a at a 60% plus discount. And guess this might be more art and science. So what’s the background to that? I mean, certainly, maybe certainly, sort of the the mood around the sort of, you know, the tech sector outside AI and outside sort of the big, big traded names is still somber and, again, sort of bumbling around at the bottom, I think, as this maybe NAV development and sort of the discount NAV shows.
But another another point, I think, to mention that we usually mention is the that if you look at us from from afar, you you probably think that you’re looking at a portfolio that’s not profitable. But as we’ve shown, that has changed materially over these past couple of years and also over the last year. So 81% of the portfolio is EBITDA positive and which includes an EBIT positive boy. Again, the only sort of part of our portfolio that where where one should talk about EBIT because they own and depreciate these scooters. So so so so this should should not be a a reason that we have sort of a portfolio that craves a lot of cash.
So you’re left with sort of sentiment around the sector overall, you know, small cap liquidity, all of that. But but also the the big sort of cash outflow is, of course, paying down paying back our debt. That debt now matures in in in the February. And, again, we’ll come back to that when we talk about GET as the sort of source of funding to pay down the debt in the near term. But the portfolio at large is a very familiar sort of picture.
I think, yeah, went through the actual holdings here, so nothing really new. We we thought we’d sort of concentrate on the on the larger names. So first off, blah blah cars, not not that much to sort of talk about in this quarter. We’ve taken out these energy saving certificates, the long distance ones, because there’s some short distance too, but the long distance ones are gone from our model. And and, yeah, it’s they’ve been gone for so long now, so we we don’t we don’t we don’t calculate with them as any value.
They may come back. They should come back. But the the the the the current sort of political atmosphere in France is so focused on on on the budget. And and and so this sort of this sort of product or focus on climate at large, I think it’s fair to say, is becomes very secondary. And now there’s, you know, who knows how long this government lasts.
And someone said there was talk about new elections in the autumn, and it’s but but but, anyway, we you know, if they come back, that’ll be upside to our model. We’ve taken them out. And, yeah, the company’s sort of growth in Europe is sort of nothing to write home about. Growth in emerging markets is something very much to write home about. That’s very, very strong.
We’re we’re we’re we’re and we’re excited about that. And and and that’s the sort of the real driver of the long term value here, of course, the marketplace for long distance travel. In in in fact, these sort of energy savings certificate, that income stream is is sort of a buy monetization. It’s a it’s a it’s a nice extra, or it has been a nice extra. Oh, it has been a nice extra in France.
Well, in Spain, it’s just starting. So it still is a nice extra, but the real value is, of course, monetizing the marketplace as such, and that’s growing very healthily, especially in emerging markets. One other thing that I think is especially relevant to blah blah car is that if we’re now heading into sort of a lower growth cycle or maybe even a recession in some parts of the world, then this product, as many of ours in the portfolio, are are nearly of a countercyclical sort of nature where blah blah blah, specifically, it’s very much about cost sharing. So you and and and and when times are tough, you wanna cost save more or save cost more, more proper English, save the cost share the cost of petrol for a long distance sort of car ride. We we extracted some numbers from the company that and and I and we highlighted them in the report that that during the course of 02/2024 alone, there’s, like, 500 and I think it was $4.04 $540,000,000 or euros saved by by by the passengers of Blavacar.
So so there’s a count there’s an element of counter cyclicality around BlablaCar, which I think is important to note when we’re when we’re facing sort of maybe slower economic growth at large. Otherwise, I mean, even though if this is not so much to report about at BlablaCar in this quarter, we remain very sort of excited. And I think one figure that just stood out when I when I when when we we put it into our report and is that we’re expecting a 50,000,000 passengers on this platform during the course of 02/2025. So, you know, you can sort of sense an enormous, enormous amount of activity at the company. Second out is VOY, and we Dennis is ready to sort of update you all on VOY.
Dennis Mohammed, Investment Manager: Thank you, Per. Yeah. As as I believe most of you know, VOY is a leading market mobility operator in Europe. In q one, we’re we we brought up VOY roughly 9%, as Biren mentioned, driven by a combination of of multiples, FX and underlying company performance. As a reminder, the company closed 2024 with roughly €133,000,000 in net revenue, reflecting almost 13% growth on top line year over year with accelerated growth in Q4, which came in at roughly 33% growth year over year.
And they also closed the year with €17,200,000 in adjusted EBITDA And for the first time in the company’s history, slightly positive adjusted EBIT at around €100,000 which we expect to grow coming into 2025. During during the fourth quarter, they also, as we’ve already talked about, raised a €50,000,000 bond, which enables nondilutive growth financing for for growth CapEx. But it also means that, we will only be able to report, the company’s financial performance with a three month lag. So their q one report is due to come out, the May, so we will be able to to to to share those numbers in our q two report, but we will also, of course, when that report is out, issue a press release to to make you aware, of of of those numbers. So in this quarterly report, we don’t have the q one figures to share, as of yet.
However, q one was strong in terms of at least tender performance, we can say. Both, both, well, two two two contracts to highlight are one in Oslo. Oslo is one of the best markets for shared market mobility globally. And the new contract, which they recently won or they won during the first quarter of this year, saw fleet size doubling, the contract length doubling, and the operational area tripling versus the previous contract, and and Voy won the contract, came in number one of all applicants. We think this is great news not only because Voy now gets to to continue to operate in Oslo, which is an even better city than ever before.
But we also think it serves as a good example of the general direction of regulations in Europe where where the few operators that remain get more favorable a more favorable operating environment, essentially. The other contract to mention is for for all you Stockholmers who who are shareholders of VMV that that Voy also won a ebike contract in Stockholm. It’s been quite a few years since we had a functioning ebike scheme in Stockholm, and we’re very happy that Voya was one of the two operators, selected to to operate, that one. If we flip to the next slide, Per, you’ve already seen this slide before, but but, as you know, in the last couple of years, Voya has been on quite a journey both in terms of growth, which you see on the far left graph, which which showcases revenues, but also in terms of margin. You see the vehicle profit margin going from 31% in 2020 to 57% in 2024.
This is essentially the gross margin of the business. And, I think this has in combination with with with more more frugal mindset on on HQ costs, has has led to to an adjusted EBITDA margin of 13%. And I think we need to go
Per Billotte, CEO: two slides.
Dennis Mohammed, Investment Manager: Then Go back. You can go off.
Per Billotte, CEO: EBIT margin
Dennis Mohammed, Investment Manager: as of last year driven by improved vehicles, more optimized for shared market mobility with a longer lifetime and improved operations as well. Looking forward into 2025 and beyond, we expect a higher growth rate than the than the the one from last year at around 13%, driven to a large degree by by the growth CapEx that’s enabled by the bond, as mentioned, but also by the underlying growth in in in in in the shared marketability market in Europe. I think that’s it, Envoy.
Per Billotte, CEO: Thanks. And then third out is GET, where, of course, yeah, the transaction is distinct to talk about. We yeah. We’re really in the final stages. I think the last sort of communication we’re really in the final stages of of this transaction whereby I think the last thing you saw from us where we updated you that the the the ICA, the Israeli competitive authorities, the antitrust over there, had sort of issued a list of concerns over the of the merger, I whereby this parking app, Pango, buys Get ride hailing.
So very intuitively not an issue for competition, whereas parking and ride hailing are two very different businesses. But but, nevertheless, there’s there’s some some concerns around that merger, and and we’re we’re we’re in the we’re in the process now of addressing those concerns. And I say we, but it’s not really we. It’s more, of course, the buyer who who Pango, that is that is addressing the the the concerns of the antitrust authorities. I think it’s fair to describe that people around the table are are very positive that this transaction will close, that there will be that there that one will be able to address concerns these concerns put on the table by the ICA.
So and that’s a very intuitively, sort of very easy to understand. I guess guess you’d all wonder why it’s taken this long, and that’s I think you’re not alone in that. But but the I guess the point is that now we’re we we as we have said that we expect this to close in the second quarter. We’re in the second quarter. And, really, the timetable around this is really a few weeks left on the transaction where we when we read the sentiment around the table, we think it will close.
Given that it hasn’t closed yet, you want you’ll you’ll you’ll you’ll all wonder what so what happens if it doesn’t close? And if it doesn’t close, it’s really it’s really not a a bad scenario, in some cases, even a good scenario because, obviously, the the sort of $83,000,000 that’s heading our way, 70 now and then 13 over a few years, is in dollars, and that’s a currency that I mean, I’m not I’m not good at sort of forecasting currencies, but if I read what everyone’s saying, the dollar seems to be heading down. So so and and so and, obviously, the company generates its revenues in British pounds and mostly in shekels in Israel. So so not dollars. So so so there’s a there’s a disconnect there.
Also, the company is in good shape. It’s generating cash. The cash pile at the company’s balance sheet is increasing. And so if if we if if if if this transaction does not close, we still expect it to close and and and us communicating around this in the next couple weeks. But if it if if it doesn’t close, we expect the company to be in a position to to sort of upstream dividends to its shareholders where we own, well, just under half to to quite a large degree where a meaningful sort of degree for us in in relation to our paying down our debt and still then retaining the same sort of ownership in a company that that really is doing well and that maybe also has upside from the price which we have signed to sell it at.
So if I don’t don’t get me wrong. I I I I I I we we expect this to close. We that’s the sentiment that we read around the table on the transaction, and we are in the sort of very, very final innings stages of this transaction. We expect to sort of know in the next couple weeks. But if it’s in the unlikely scenario, I should say, that it doesn’t close, I I there’s very likely likely both liquidity coming our way and potentially also upside.
So there’s, of course, you know, there’s risk with everything. You know, Israel is, of course, in a very volatile part of the world. It’s still at war, etcetera, etcetera. So so that has that’s the counterbalance against this upside, but but it’s yeah. And it’s it’s it’s it’s it’s a good plan b.
Yeah. I think that sort of covers GET. And last, we’ve we’ve sort of in this report highlighted a little bit around Neumann because it’s grown to become quite a large part of our position. Dennis spent a lot of time around Neumann, so I think you’re best could could
Bjorn Franzous, CFO: you could you walk us
Per Billotte, CEO: through the the latest stuff on Neumann?
Dennis Mohammed, Investment Manager: Sure. So as as I believe most of you know, Neumann is a health platform specializing today on around obesity and and and and personalized health care. And their history has been had a lot of focus on male health issues such as, you know, erectile dysfunctions, hair loss, etcetera, but but they have now evolved into to a a unisex brand, really, much driven by the their weight loss offering centered around GLP one treatments, which has driven significant growth in the past two years. To date, Newman has treated over a hundred thousand patients for obesity, with over sixty percent of those, being female patients. The company has had a very strong start to 2025 with revenues growing close to 200% year over year, in the first couple of months of ’25.
This is on the back of of of a of a 2024 that grew roughly a 30% for the full year. So just to give you a picture of of of the growth here, and they are EBITDA positive since since last year as well. In this quarter, we have we’re carrying it roughly flat versus the previous quarter. I believe it’s down 1% in our NAV.
Per Billotte, CEO: Good. Thank you, Dennis and Bjorn. So I think that gets us to q and a. Bjorn, do you want to walk us through how we
Bjorn Franzous, CFO: Sure. Again, if you want to ask a question, please use the q and a function or raise your hand. I will try some live questions as well. I think we have one or two from Ramil at Danske Bank. I’ll open your mic now.
If you’re there, Ramil, please
Ramil, Analyst, Danske Bank, Danske Bank: go ahead. Hi, guys. Can you hear me?
Bjorn Franzous, CFO: Yeah. Yeah.
Ramil, Analyst, Danske Bank, Danske Bank: Amazing. Just trying to wrap my head around this GET transaction. First off, just a clarification. Have you had any opportunity of sort of leaving the table at any point sort of included in the initial contract you wrote with the buyers?
Per Billotte, CEO: Yeah. No. I mean, no. We’re still we’re still under we’re we’re we’re in the sort of we’re still we’re still governed by an an an SBA as which which is signed and done, basically. But it doesn’t live forever.
And and that’s the the the end of that SBA sort of coincides now by by by, you know, by planning with the with the the end with the with the end of the sort of interactions with the antitrust over there. So so we’re bound by that SBA for for for another for another few weeks.
Ramil, Analyst, Danske Bank, Danske Bank: Okay. Okay. So I’ll apologize, Paul, because I don’t know what an SPA is in this context. But sorry.
Per Billotte, CEO: SPA. So sale and purchase agreement. So we signed an agreement to sell the whole company to the buyer, and and that that agreement is is is nothing that buyer or seller can exit from. But but but it doesn’t last forever if it doesn’t close, if you see what I mean.
Ramil, Analyst, Danske Bank, Danske Bank: Okay. So if competition authorities haven’t or put it this way, the buyers and the competition authorities haven’t agreed on concessions, you are allowed to leave the table, so to say, at some point?
Per Billotte, CEO: Exactly. Exactly.
Ramil, Analyst, Danske Bank, Danske Bank: And and when is that, Pal?
Per Billotte, CEO: We we haven’t communicated the exact date, but you you it’s well within this second quarter.
Ramil, Analyst, Danske Bank, Danske Bank: Okay. Okay. Because just looking at these numbers you’ve provided on get, mean, you’re you’re selling it at 10 times EBITDA including earn outs that will be paid out to work for your period. So and and it is the de facto sort of market leader in quite developed markets. And, you know, do do do you see my I mean
Per Billotte, CEO: Yeah. Yeah. Yeah.
Ramil, Analyst, Danske Bank, Danske Bank: Are you are you really pushing for this to go through? I know it’s a very candid question, but trying to understand it here.
Per Billotte, CEO: No, Ramil. I mean, it’s a I’d say it’s it’s a very valid sort of topic, and we believe me, it’s something that’s been sort of discussed here. But, you know, we we did sell this I mean, it’s a year ago even where we sort of signed this, and we were, of course, and rightly so, I think, very focused on on selling assets from the portfolio in order to sort of pay down the debt. We don’t think that that debt is is we I mean, our financial strategy is to fund our work with equity, not debt, and we’d use debt as a bridge to an exit. And and, of course, we had a couple of exits that didn’t work out during sort of the volatility that we saw a few years ago.
So so I think I think that I I absolutely stand behind that and and feel that that was the right thing to do. Of course, we signed this agreement at the price we sold it at I mean, the agreement during a period when Israel and the war was in a in a more sort of violent phase than now. So so that’s, of course, developed to the positive. We hope it stays positive. But but yeah.
So so so yeah. We’re we’re we we have we I think it was the right thing to do to sell it at the price we sold it at. I mean, I think the it’s but but but we’re we’re not should the transaction should should the ICA not say should they not want to approve this within within the sort of the time frame of the SBA, then then it’s an asset that we’re we’re, at this stage, very happy to keep on owning. But I also feel that if it now gets concluded, which we think it will, then it allows us to move beyond debt, which I think has positive implications for, you know, our balance sheet, of course, but also how we’re viewed the threat of sort of paying down the debt and how do you fund that. And I I sort of again, more art than science, but I sort of feel that that that that has that that sort of a drag on where we trade in relation to NAV.
So it’ll be good to have that behind us. And and although the price was negotiated a year ago and the company is doing well, I think I I I really think that that’s that’ll that’ll be that’ll that’ll be positive for how we value the the portfolio at large and can sort of move beyond that. But but it but it’s not but it’s absolutely not the end of the world if it doesn’t happen because we will be able to upstream dividends, and without going into the to exact sizes because that’s not been decided yet, of course, because we’re under we’re living under this SBA. I I I I really feel that we we can do sort of we can we can, with dividends alone, sort of materially reduce our debt and then sell the company a few years down the road before this sort of bond matures well within the time frame of the, you know, the remaining duration of this bond. So, yeah, no.
So so so it’s yeah. We’re we’re still under this SBA. That’s good. We think it will be concluded. If it doesn’t, it’ll there’s probably upside to be gained here.
Sorry. I I started babbling on so much.
Ramil, Analyst, Danske Bank, Danske Bank: I No. No. It’s it’s
Bjorn Franzous, CFO: a good question.
Ramil, Analyst, Danske Bank, Danske Bank: No. No. It’s good. Be be because it sounds like the end of the world is perhaps if well, we’re closer to the end of the world if the deal closes at current terms than if it didn’t to you in terms of shareholder value creation. But just to get this very clear, and you did allude to it on the presentation, but but you’re not willing to give any concessions to the competition authorities to get the deal through
Bjorn Franzous, CFO: No.
Ramil, Analyst, Danske Bank, Danske Bank: I. E, sort of give away more of your upside here. So it’s up to the buyer to make sure that the deal goes through here.
Per Billotte, CEO: Yeah. Yeah. It’s not it’s not for us to make concessions to the I to the antitrust authorities. It’s for the buyer to make concessions. I mean, we just own GET.
And then I think the the antitrust the competition authorities have you know, as as we expressed in that press release, they have raised concerns. If you combine GET with this parking app called Pango, I. The buyer, that’s the issue. So it’s so it’s the owner of Pango, which will then ultimately be the owner of Get that has to sort of has to address these concerns with concessions or you’d speak about remedies, etcetera. That’s the the it’s it’s really on them.
It’s not really on us to to do anything if if if if that’s if that makes any sense to you.
Ramil, Analyst, Danske Bank, Danske Bank: Yeah. Yeah. It does. Okay. Thank you, Pai.
And then maybe two two more questions, if I may, on, you know, the general portfolio. What kind of path to value crystallization do you see during 2025 outside of yes. Are there any assets you believe you could sort of exit or partially exit to show the the prove the values here?
Per Billotte, CEO: Well well, there there are we we’re in the process of doing some exits in some smaller positions, and you could call it more as a sort of cleaning up of the portfolio of there’s a bunch of smaller stuff that that’s doing well and that we are we are we are gonna be able to exit and in a similar sort of fashion to the tail end of last year when where we sold some also some smaller positions and that gave us cash and, you know, maybe not enormous cash if you compare it to the overall NAV, but still material cash for, you know, for our liquidity right now in addressing that. And and so so so so they’ll I expect it to be that there’ll be sort of a movement of liquidity in a positive way to us, which we will then, you know, provided that we’re out of debt, be able to sort of use to buy back stock, for example. I I don’t I I don’t really expect any sort of IPOs to happen in any of our companies during the course of 02/2025. I think in in in a year’s time, in the middle of twenty six, there could be a whole sort of roast of IPOs.
Maybe it’s still a touch early. It all depends on how the world’s looking, of course. There’s some IPOs that have been postponed of sort of big Swedish names, Klarna, of course. But but but it’s sort of more sort of IPOs and and and and and that kind of sort of proving up of the NAV is more is is more like a year away. But having said that, of course, we do see that parts of the portfolio I mean, a big big chunk of the portfolio is doing quite well and and and and may be raising money for agri for aggressive purposes and hence at valuations which are fair.
And we think we we’ve sort of we have our portfolio pretty much at where it should be, the NAV. The the auditors listening into this call will say that we’re exactly at the right value, but there’s always there’s a plus and there’s there’s a minus, but I think we’re roughly fair. So so what I’m trying to say that there there there could be sort of I wouldn’t rule out that there’s transactions in in the in some of the portfolio names where these these companies raise money to grow faster or, what have you, at valuations where we are sort of happy to be diluted because they’re they’re around the NAV levels, and that will also be helpful for for these companies or or helpful for us because they’ll prove up the NAV. Nothing is sort of I mean, we obviously can’t talk about anything until it’s done, and and so we will talk about then it’s when it’s done, but I I those kind of transactions, I I wouldn’t rule out. But but but they wouldn’t necessarily be listings.
That’s probably more like a year away.
Ramil, Analyst, Danske Bank, Danske Bank: That’s very clear, Parry. And then maybe a final one for Dennis on Neumann. Do you see any sort of regulatory risk pertaining to the fact that, you know, GLP one prescription methodologies are being questioned somewhat in media and whatnot?
Dennis Mohammed, Investment Manager: I think that differs from geography to geography in The UK. As far as I’m aware, there hasn’t been any questioning in terms of in terms of, you know, the the prevalence of the drug and the usage of the drug. Obviously, it’s it’s it’s still pretty novel. Right? And and and there are being studies are being made as we speak.
Most of them are coming up very positive. Obviously, there will be questions around, side effects, which which, you know, might impact that further down the line. The risk is not zero, that regulations might impact Neumann, but but the current outlook is pretty good. There’s some stuff specifically in The UK around, how these drugs can be prescribed, and what kind of interaction is required between the prescriber and the and the patient. And this is something that can, you know, we we we view it view it as a positive if it actually is re is enforced, in The UK, so making it a bit more stringent compared to to what it was last year.
But but, yeah, it’s it’s, you know, massively growing. It’s very, very early days. There’s not it’s it’s not a zero risk event that that that regulations would impact this, but but so far in The UK, it’s looking it’s looking quite well.
Ramil, Analyst, Danske Bank, Danske Bank: It’s very clear. Thank you, Dennis, Bjorn, and Harry for taking the questions.
Bjorn Franzous, CFO: Thank you. We’ll move forward with some of the other questions. First, I can take one short one on the on the debt position. So so the debt, as I mentioned, increased from $77,000,000 to $85,000,000 over the quarter, and that has everything to do with with that the debt of the bond is is denominated in SEK. So SEK appreciated quite a lot during the quarter versus the dollar, and after reporting dollars, it’s increased.
So so it’s just FX. And then moving on from that, we have a question from Ina Ypsun at SEB. In the annual report, you mentioned that the top five holdings were growing by 25% on average in in 2025. Has the current macro volatility changed that outlook, or do you still see that type of growth? And, you know, which of the top five holdings, main contributors are growing the fastest currently?
Per Billotte, CEO: Yes. I I wouldn’t say that that outlook has changed due to the macro. Maybe even on the point around blah blah car counter cyclicality that it’s maybe even changed for the better. But but it’s maybe a little bit too early to say if it’s really sort of growing faster because of countercyclical sort of elements to it. But but we do see I mean, the two standouts here are the ones that was covered is is is VOY is is growing faster than where where where we expected it to grow even now in the first quarter.
And and, you know, there you know, as Dennis mentioned, there’s they did raise capital, and there’s some there’s a there’s a there’s a lag between when you raise the capital, you do the orders, and you get the sort of the equipment down to the streets, and they can earn money. So we still have that somewhat ahead of us. And and so that’s exciting. And then, of course, Neumann. And, yeah, g p one being sort of maybe a novel product in many ways and maybe sort of the institutional part of capital markets doesn’t feel it’s been around long enough to sort of really give it full value, certainly not in a in in in sort of the platform place around it like Neumann or HIMSS because these companies I mean, I’m not the expert on HIMSS, but Neumann is growing a lot.
And and the and the regulatory sort of wins or the the, you know, the the overall sort of sentiment at least sort of on a on a I don’t know what you say, on a clinical sort of level, you see it’s like these these products are having a having more health benefits than than, you know, you know, so it’s going sort of in a positive direction rather than than I think what people are afraid about, that that there are some side effects, etcetera, that will sort of start to sort of limit the usage of it. It’s more the the the wind seems to be more positive, but it’s a young product. So so so so it doesn’t get sort of that full value that you would if you whilst you were growing as they are. Sorry. Long winding answer, but the the the short answer is, we I think that still stands, and maybe there’s even a push to the upside.
Dennis Mohammed, Investment Manager: And their pair, I think it’s also worth highlighting, you know, between Newman sorry, between blah blah Housing Anywhere, and VOY. These are quite, quite seasonal businesses with high season coming in q two, q ’3. So I think we’ll we’ll you know, the jury isn’t really out yet. We’ll know, we’ll know the outcome rather towards end of year. But but to Paris’ point, I don’t think the outlook has changed with with with q one data alone, which is worth highlighting that they have the majority of the revenues coming in the in the coming two quarters.
Bjorn Franzous, CFO: Good. And then there’s a follow-up question on Gethehr. In the unlikely event that Gethe that the Gethe transaction does not close, can you provide some color at all around the quantum of the expected distribution you think you can receive from from the company?
Per Billotte, CEO: I see. It’s it’s a little early to get into those kind of details, but because because there’s the the well, well, for number one, the company has a larger cash position on its balance sheet. And and I think a large chunk of that can be distributed pretty quickly. And that but that would get you that would get you, like, you know, twenty, twenty five percent of the sort of of this of the exit price, if you will. And then but then if you as you make this sort of balance sheet 25%, is it?
Yeah. Something like that. Call it 15 to 20%. I mean, something like that. But then you you you have you have a balance sheet that’s very inefficient and that there’s there’s no debt.
This is obviously cash flow positive business and and and that kind of situation, that kind of balance sheet, that kind of company should be able to sort of to hold and service quite a lot of debt to to, you know, for for equity holders to sort of to maximize their value. So so there should be there should be more sort of dividend streams stemming from sort of a more efficient balance sheet. So but it’s a little too early to go into the exact details, but a material amount. So so, yeah, I mean, you get the picture if this thing doesn’t close. And, again, I think we’ll close.
But if it doesn’t, I I it it feels pretty good.
Bjorn Franzous, CFO: Good. And then there’s some other get questions that we already covered. I think I think we’ve moved through the questions we’ve received. So with that, I’ll leave it to you to to to say some final remarks.
Per Billotte, CEO: Some final remarks, Bjorn. Yes. That’s good. I think we have our AGM on the May 14. Please come to that if you’re around, or I think one can log in.
Can we log in? But, anyway, the AGM, you’re all welcome. That’s here in Stockholm. The next quarterly, Dennis has has kindly informed me. We’re that’s on the July 17.
Seventeenth of July. Yeah. So we’ll do this kind of exercise again for the second quarter. By then, we won’t talk about GET anymore. It’ll be done or it will be it’ll be still with us and well, we’ll we’ll then we’ll talk about GET.
But, anyway, you get the picture. And then I don’t think we’ve sort of set these dates in stone, but we are we like we think we hope it’s useful now to have Capital Markets Days, and we are planning one again this year, sort of sketchy planned for mid September in London. And and that may move around a little bit also geography wise, but but September is what we have in pencil in our calendar. So so, yeah, hopefully, we can sort of firm that up and and get you get you sort of get you get that into your in in into your calendars and ink, and then see you there. Anyway, so thanks.
You know where to reach us if there’s anything you we can help you with in the meantime. Thank you.
Ramil, Analyst, Danske Bank, Danske Bank: Thank you. You.
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