Good day and thank you for standing by. Welcome to the VEF Q2 Results Conference Call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone, and you will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, David Nangle, CEO. Please go ahead. Thank you, operator, and good morning, good afternoon, everybody, and welcome to our Q2 results conference call. For a change with me today, I've got our CIO joining me on the call, Alexis Koumoudos. Many of you know him, but an introduction to you all from his side, as he'll be taking part in this call with me today and also part of the Q&A at the end. Going straight into the slide deck into slide number two, just to summarize the key events of the quarter. I think first and foremost, for us to state ourselves and the year-to-date performance in the markets, it's been tough. That's probably a statement that you're hearing on many conference calls at the moment from a variety of CEOs in a variety of sectors. You know, for us, it's really about inflation and interest rates rising. That's, you know, especially in the U.S., and that sets a tone for financial markets and stock markets in particular, of which a lot of what we do is linked. The trends that started in Q1 accelerated into Q2. The space that we invest in, obviously the private space, but even in the listed space, the fintech area and tech area in general is higher beta and has been hit more than most. The full brunt was basically felt in our part of the world. Our share price within that as a barometer of that, you could say, has not been immune. It was off 48% quarter-over-quarter. Quite a tough quarter all round, from a macro and a micro perspective into our share price. What we've done in this quarter, in summary, is we have reduced our NAV to try and reflect these new market conditions. That movement is 40% lower quarter on quarter, so quite a big move and indicative of a move that we did back in Q1 2020, with the onset of COVID or first half of 2020 with the onset of COVID. There are windows like this which need, you know, more dramatic NAV moves either north or south, given the backdrop of the market that we operate in. Now, none of this has any reflection on the quality of our portfolio or our companies. It's effectively a move in valuation points as reflected by the moves in peer group multiples across the broader markets. You know, that said we're confident, we're calm, we're actually optimistic. Why so? Because on a portfolio level, it is well-positioned on our end. Specifically we focus on, you know, top end of the portfolio. Over 70% of our equity or invested portfolio, which is Creditas, Konfío and Juspay. All these three companies are well-funded with high growth plans and are on a path to break even. That obviously gives us a lot of comfort around the debate. There is a debate on valuation as always in these markets, but we're not debating the viability, the growth rates or the fundamental attractiveness of what are our top assets. Beyond that, you know, we have a bunch of names below those top three and which are well-funded and showing exceptional growth. We're gonna point to names in India, which is a very fast growth market for us and an improving size-wise market in our NAV, with names like Rupeek and BlackBuck, you know, after the Juspay name in our top three. Recent investments in Brazil, like Solfácil and Gringo, and other names across the portfolio in different areas and geographies like TransferGo and Abhi, to name but a few, which are all growing well, well-funded, and in a very strong place irrespective of the macro micro backdrop that we play into. Also a number of our companies received, you know, follow-on funding in the recent quarter at previous round valuations, which is indicative of their quality, namely Creditas, which we'll talk about in detail, but also Juspay, Solfácil and Rupeek. Then at a VEF level, you know, there's defense and attack in windows like this, but defensively we're well set up. We've got $64 million of cash on our balance sheet as of the end of the quarter. We're in a net positive cash position minus debt. We feel very strong and comfortable in the current environment, albeit, you know, as harsh as the current environment is, that we see. Creditas specifically is worth a headline because, you know, after the end of the quarter, it announced an expansion to its Series F, which we took part in back at the end of 2021 into the start of 2022. An additional $50 million came into their funding round via Andbank, and they closed an M&A transaction to buy a bank, Andbank's local private banking operation in Brazil, which is very positive strategically for them from a funding point of view. You know, in essence, we'll talk about this. We welcome the contradiction where we've marked Creditas on a more conservative basis versus, you know, the market transaction just went through, which is indicative of value upside that we can see in it. The final point is just around this, you know, our shares are now trading on Nasdaq Stockholm main market. It's indicative of what we're doing at a company level. We keep on moving to improve our company over the long term, putting in place the key tools and pieces that will make us a very attractive investment for investors over the long term, as opposed to getting overly caught up in the short-term movements of markets and everything in between. On the numbers front, you know, you've seen these this morning, but I think the key numbers to focus on is our NAV in dollars. That's $441 million, you know, as of the end of the quarter. That's down just above 40% since the start of the year. We started the year at $761 million, which is a peak for us at that point. From a NAV SEK per share, which is where we kinda trade around, we ended the quarter at SEK 4.3 or SEK 4.30 per share, down from 661 at the start of the year, a 35% move during the first half period. Quite sizable moves, less so on the SEK side given the movement and currency of SEK dollar over the period, but both down 35%-40% over the period. Moving on to slide four, just looking at our net NAV over time. It's a chart that we show every quarter. This has been gradual and up until the right over time. Obviously there is windows like this where you get a mark down the NAV, as a function of the various parts that feed into that. I mean, this is all market related and market multiple related. You can see the significance of the drop. I think the last time we did something like this was back in March 2020. It was a significant drop down. It was 25%. It's more significant now. As we like to think we've got on top of this, a 40% drop. That's the evolution as we go. Moving into just a few kind of macro comments on markets and Fintech stocks and evolution of share prices and multiples. Then I'll pass on to Alexis, our CIO, who will get a bit more into the detail of our valuation methodology and what it spat out in this quarter. You know, over the quarter year to date or last 12 months, obviously markets have started to come off, you know, 2021 highs. With general markets in the S&P reflected by the S&P or Nasdaq, the more tech heavy index, they started to turn off in Q2, an acceleration of those trends. I think more specific to us is the left-hand side is the fintech indexes. They're never perfect barometers of what we do and what we are. What you've seen is, you know, the ARK index and the Fintech index, you know, both off 47% and 62%, year to date for the first half period. Once again, going back to that higher beta space. This is listed Fintech stocks both in developed and emerging markets, as a reflection of what's in our portfolio. It's not a perfect linkage. We have different names in different countries and different segments, all of which have been hurt to different detriments, and the starting points are different. You know, the indication of the direction of travel over the recent period is quite clear from these charts. You kind of roll that through into a multiples point of view, and this is very much focusing on short-term valuation multiples, which the market tends to be fixated on. You know, over time, we tend to invest in long-term, you know, valuations and long-term forecasts and true cycle multiples. One has to respect the markets, the short-term nature, of the markets, their price point today, and the reflection of those next 12 months revenues and just top line, not even bottom line revenues. You can see with the sell-off in share prices and indexes over this window, both on the developed market side, we've just taken a few examples of listed bellwether developed market Fintech stocks. On the right-hand side, Brazil, where we're heavy, we've taken a selection of listed Brazilian Fintech stocks. You know, selldown in share prices has been clearly mirrored by a wind down in the valuations of those on a 12-month basis to below 5x forward from, you know, what was, you know, true cycle previously 10x or even above in developed markets, probably less so in Brazil and emerging markets. What the process that Alexis is gonna walk you through is, has kind of spat out for us in the quarter. It's quite dramatic moves in some of the names in our portfolio. We've reduced the valuation at the top end in names like Creditas and Konfío, 50% and 55%, respectively. As I say, no disrespect to the companies themselves. This is a valuation mark, not a reflection on a company mark. What sticks out is maybe Juspay, the third largest company in our portfolio. It's actually flattish on a per share basis quarter on quarter, but up because we've put some more money into that name over the period. You know, quarter on quarter it's flattish and deservedly so, given that it's still marked at a multiple which is a discount to related peers. I think it's the top three names that's worth focusing on at 70% of our NAV, and then that's where, you know, the NAV has moved most dramatically versus the rest of the portfolio. What I'll do at this point is I'll pass the mic over to Alexis, and he's gonna talk a little bit more about our valuation approach and what we've done in this quarter and some of the key takeaways that are worth sharing with you. Over to you, Alexis. Thanks, Dave, and hi, everyone. As Dave mentioned, I'm going to delve a bit deeper into the details of our valuation approach for the quarter and the impact on the portfolio. We've worked hard as a team with our auditors to make sure that our NAV marks reflect a new public market environment and as best as possible, a conservative fair market value for the portfolio. As a reminder, our portfolio at the end of second quarter consists of 16 portfolio companies. The breakdown of the valuation methodologies for these 16 companies is as follows: We've got eight companies that are marked to last transaction round. This is where the last transaction is recent, relevant, and substantial, or where the valuation multiples implied by the recent transaction are relatively in line with where listed peers trade at the end of the second quarter. The other half of the portfolio, which is eight portfolio companies, are marked to model, including the calibration methodology reintroduced in this quarter. Calibration methodology applies to three of the eight marked to model companies and aims to calibrate the valuation of these portfolio companies who completed recent transactions to significant moves in public markets. This is done if we see that the valuation multiples implied by the transaction have fallen out of sync with the peer group and therefore need to be realigned. This is a useful tool we've used in the past, for example, during the public market fallout at the start of COVID-19. Just to summarize what the key impacts are of this on our portfolio and to put it into context. For our two largest portfolio companies, Creditas and Konfio, we've moved valuation methodology to calibration methodology. By doing this, we calibrated the last transactions to reflect their peer group sell-off, overlaying this big move onto their last transaction. For reference, the median peer group rolling forward revenue multiples for both companies have traded down by about 50% over the quarter, which represents the majority of the markdown. The calibrations of these two companies valuations has had the biggest impact on our second quarter NAV mark, accounting for 92% of our second quarter NAV change. Other companies in the portfolio, for example, Juspay, which is our third largest portfolio company, we hold at last transaction value. This is held at the last transaction valuation for the following reasons. Firstly, the implied multiple at this valuation represents a discount to key payment peers at the end of the second quarter, while Juspay possesses a lot of strategic value and is growing faster. Secondly, Juspay also raised an additional $18 million of primary capital in June 2022 at the last round valuation, so shares are being bought at this price. Within the top end of the portfolio, Solfácil and Rupeek, as well as Juspay, all saw recent substantial top-up investments at last round valuations during the second quarter, giving us a great deal of comfort that the valuations are still relevant today. One point to note, which highlights our conservatism and methodology for establishing our NAV marks, is that the majority of our companies, we own share classes with liquidation preference and anti-dilution rights, but do not take these into account for valuation purposes. The bottom line is that we've established a rigorous and robust process for determining the fair value of our stakes in portfolio companies and therefore our NAV. We have a bias for erring on the side of conservatism in this process. We therefore feel confident in being able to stand behind our reported NAV in this quarter. On the next slide, we've just noted down some comments and caveats that we have for stakeholders and partners to understand a bit more about the valuation methodology and our NAV marks. First of all, we're not price setters or market makers for our portfolio company valuations, so have no hand in influencing valuations. Second, our companies will continue to raise fresh capital and exit valuations different to our marks. Generally, they've been above, for example, an iyzico and Creditas case, but as you can understand, this is the moving feast. Third, the dynamics for each company performance and valuation mark is unique, and so direct comparisons of quarterly moves are not applicable or a reflection of anything other than our valuation process and market or peer group dynamics. Fourth, we're bound by valuation rules as a listed company, and we believe that we are conservatively biased when incorporating them. Lastly, to note, we're long-term investors and dislike focusing on short-term valuations for our holdings. We're constantly evaluating execution of companies and basing investment decisions on long-term through-cycle valuation multiples and perspectives, as we always have. For this reason, investment decisions could be taken at different valuations to what the market determines as fair value today. That's all I have to say on the valuation approaches and key takeaways. I'm sure some people might have questions on this later on. Yeah. Super, Alexis. I'm sure they will. Look, continue the presentation and we'll wrap up soon and open up for that Q&A. You know, getting on a more positive hill, you know, it's clear that we wanted to get deeper in our report and in our presentation on our valuation process, given the importance of the move or the size of the move and the importance of the mechanics going in here. That's why we went a bit deeper and a bit more technical. We'll do the Q&A at the end. You know, getting more onto the upside and where we feel better about life or good about life, you know, it is the top end of the portfolio. I focus on that because it's important for us, and for shareholders, they'll be looking at us. It defines our near-term success. That's the three names at the top. That's no disrespect to the other, 13 names in our portfolio. It's just a matter of size and shape of our NAV today. That's Creditas, Konfio, and Juspay. We've got a high degree of confidence in all of these names, at this point in this cycle. What we, you know, what's been the focus over the last three months when we got really heavy double-clicked on everything as we visited two of these companies on the ground in their markets, is what you want is your companies at right now to be, A, well-funded, B, a clear path to break even so you de-risk them, and three, also delivering you high growth. That's kind of like a golden trilogy, and we're very close to having that at all three. We have it at Creditas, Juspay, close to doing that, securing that at Konfio. That gives you the upside that you want in a private investment, i.e., you know, funded for fast growth, but also the downside protection in markets like this where capital is scarce, and can be difficult. We're very confident on these three names, and that's kind of, it's gonna be our calling card over the next 6, 12, 18 months, these three names and the delivery around these three metrics. Then I, you know, move on to Creditas specifically, which is nearly half our NAV, or was half in Q1, slightly less, in this quarter given the move. You would have seen the press release that we put out off the back of their press releases because, you know, they announced an expansion of their Series F. We took part in the Series F, at the end of 2021. Part of that was to do an M&A transaction. They raised under $50 million on top of the $260 million they raised in Q4 into Q1. Andbank Global Private Bank was the investor in Creditas, now part of the cap table and very welcome. To raise that last round valuations obviously is an exception for the best companies in a window like this. You know, as part of that transaction, Creditas acquires the banking franchise license of Andbank. Still to be regulatory approved, but that will take time getting there. They're active as of today, and that's key because it diversifies their funding base from the local funding market, which has been very deep, rich and supportive of Creditas, over time. It just gives them another string to their funding bow in terms of diversification, funding type, price point, etc., to allow them to raise effectively deposits or CDI certificates of deposits in the local market. Also, as part of the transaction, as well as getting equity in the door, which kind of fills a funding gap for Creditas to grow fast to break even, which gives us great comfort, but also raising a convertible note, something that they also made public as part of their announcements, to raise up to $150 million for M&A effectively in a window like this. You want the strong companies who are well capitalized, growing, to be mopping up opportunities in windows like this. Creditas obviously is well suited to that given its history. A couple other points from that. While people get caught up on the short term, both for VEF, for Creditas, for everybody's short term income impacts of market moves, you know, Creditas is still forward leaning, forward leaning and raising money for M&A, forward leaning, getting the capital it needs to grow fast, to break even. Forward leaning and moving from its accounts to IFRS away from Brazilian GAAP as part of its path to IPO. Also it highlighted a recent headline number in first half revenues top line, which grew over 3x year-over-year, kind of showing the market is still growing at an exceptional clip. It will start reporting its quarterly numbers again. It's this move, this transition to IFRS, which has taken a bit of time as part of the IPO process, and that will be coming soon. I think the bottom line for us at Creditas to you, the investors, is that it has the capital, the proven machine to deliver, you know, triple digit revenue growth, which is still delivering. You know, has depth and diversity in funding with this bank license acquisition through cycle, and it's got a clear funded path to break even. These are things that we all like about Creditas besides the core and machine, which we've talked a lot about in the past. We get the contradiction of the valuation mark that we've put out in this quarterly report versus the money that Creditas is still raising in the market at market price points at the previous valuation round. We think it's welcome that we are slightly more conservative, and we very much welcome that they're getting the capital in the door as people look beyond short term cycle multiples, which is very welcome, clearly. Just on Creditas, last point. I think the M&A aspect of the story has been very strong in the past, so I think it's a great time for them to be having capital on balance sheet and looking for opportunities in what can be difficult markets for some smaller companies which add a lot of strategic value. It could be teams, it could be product, it could be technology to enable Creditas as it expands its ecosystem, as it has done over the last few years, both organically and successfully inorganically. Two more slides. One is just on our NAV and share price. Obviously there's been an evolution here. The market is very efficient or overly efficient both on the way up and on the way down. Companies like ours tend to trade at a premium. When you get to peak euphoria, i.e. Q4, it tends to trade at a deep discount when you get to moments like this in the market. We've seen that happen. You look to control the controllables and that's what we do with VEF as a company, our capital position, our portfolio names. We know that cycle will come back over time. We just need to keep on delivering and keep on showing the information to our clients as we go. I think a key point in that is our move to the main board. This is something that was happening, you know, over the last 12-18 months, but actually did get ratified and was executed on the start of June. Now trading on the main board away from the unregulated Nasdaq First North. We have big aspirations for our company over time, and moving to this main board is an indication of that direction of travel. I think it's, you know, we've promised our biggest shareholders who've been with us through cycle a lot of the big names in global fund management, even though we were small, we were on unregulated exchange, we were delivering, you know, a great story for them, transparent and with a roadmap to moving, you know, regulatory-wise to exchanges like the main board and other aspects, moving the whole code back to Sweden, improving the diversity of our board of directors. All these things are things that we continue to push forward so that we are a long-term sustainable winner in the space that we're in beyond these short-term cycles, both on the way up and on the way down. So just to summarize before I open up the Q&A. I think, you know, we've taken the market pain as it stands, arguably conservatively so. We stand behind their NAV. We're very comfortable to do that. One can always debate the nuances and valuations of different names and points, and we get that and the markets are moving every day, both from share prices, multiples and currencies, but we stand behind their NAV. Our top three holdings are in a very strong place. That's Creditas, Konfio and Juspay. I think I've been very clear on why, we see them as portfolio champions and winners and engines of real value creation for us, especially from this point where the marketplace is our share price and our market cap. We have a number of next generation names coming through, starting to shine. That just gives us that engine room of names that can break up into our top three names and start to add real NAV value because they could become more sized. I think it's important to note our cash level and our cash cushion. $64 million in net positive cash position just makes us very comfortable at this point in time in the cycle to be sitting here with that. It's not a war chest, so to speak, but it's a very comfortable cash position to ride through the cycle and support our companies as we have done year to date. The pipeline is always there, keeps on bubbling over. You know, during the quarter, we were in Brazil, India and Indonesia, our first trip to that market. We've still got a go-forward strategy while playing defense, and very comfortable that I think the opportunities at the right price points will start to arrive, you know, as the strain of these markets trickles through into the second half of this year. I think my message is that we're always saying we're in this for the long term, and that's you would say it maybe more in windows like this where people are putting pressure on the share price or asking questions around aspects of the business or portfolio. I think we just keep on putting out statements like this, keep on proving the value creation in the machine, and these do pass as always. Operator, I will stop there, and I'll happily open up to the floor for questions. As a reminder, to ask a question, you will need to slowly press star one on your telephone and wait for your name to be announced. Please stand by while we compile a Q&A roster. The first question comes from the line of Joachim Gunell from DNB. Please go ahead, your line is open. Thank you very much, and good afternoon, Dave and Alexis. I'll rip off the bandaid, and I know you dislike to focus on the short term valuations here, but two questions on that topic. With regards to that, almost 65% of the current NAV is verified as of Q2, or even, I mean, two weeks ago in Creditas. Can you just talk about the relevance of these rounds in terms of whether it's been more entirely with existing shareholders who have invested pro rata or, I mean, you commented a bit on Creditas here. I would assume you understand where I'm getting at, whether it's like new investors that are finding this, the company's attractive at the price points. Yeah. No, Joachim, it's a very fair question. Like, it's been a mix, to be clear. I know with names like Creditas was a new investor, with names like Solfácil is a new investor. Juspay was a mix. A mix of current and new investors over the quarter. I think we've seen that mixed bag, same with even FinanZero down at the smaller end of the portfolio. It hasn't been group consortiums of internal shareholders, you know, putting more capital in to set a price to make us all happy with ourselves. That hasn't been the case. What I would say is, you know, these rounds also have to be justified by a valuation process of multiples. So, you know, if we feel that we need to be more conservative based on where market multiples have gone versus a name, which we did with Creditas, in fairness, we, you know, we saw the investment coming. We were very supportive of it. We think it's a great investment. For Andbank, it'll be a great investment through cycle. Given where market multiples were on that one, we felt, you know, sitting down with our audit committees, sitting down with the auditors, and arguably given the fact that it's at that end of our portfolio with a very significant investment, you know, conservatism in the face of these kind of markets was 2-4. I think that that's the way I would summarize it. I don't know, Alexis, if you want to overlay anything on top of that. Yeah, no, I think it's a good summary. I think we gave the example of Juspay. Juspay actually, they raised $18 million of primary capital in June. Just before that, there was a very large secondary transaction as well of about $15 million at last round valuation. Both of those are a combination of new investors coming in and existing investors taking up rights. That's very clear. Thanks. I mean, I must say that I appreciate this more, call it, transparent framework that you allude to here in these results, helping us understand how you think, and I think that the market credits your conservatism in today's trading. Perhaps, Alexis, if you can be a bit more detailed on, say, for the top three holdings. In the last quarterly report, you commented a bit actually on what multiples you use. Is there anything you can say, Creditas we have, I mean, your ambitions to grow 2x this year, etc. Can you say anything about the, call it, the sales multiple on Creditas just being Konfío at this stage? Yeah. What I would say on specific multiples that the way that we are valuing, the top two companies, Creditas and Konfío, that are marked at on a calibration methodology, the methodology itself just aims to recalibrate the last transaction to a dramatic move in the market. We're not hanging our hat on any specific multiple. T hat's not how we look at valuing the businesses today. Other than obviously the multiple that's being spat out is very much in line with where public peers are trading. Juspay exactly the same thing. In fact, Juspay, the implied multiple, valuation multiple is now at a discount to listed payment peers. Okay, I'll try to do the backwards calculation then. Thank you. It was worth the shot at least. Two more questions. Can you possibly quantify the funding need of the aggregate portfolio over the coming 12 months? I mean, obviously you're well-funded now with proactive balance sheet management with the bond, etc. You said that for three top holdings, they have already or are in the process of securing funds. Creditas and Konfio. Oh, sorry. So they have obviously already done so very recently. Is it only Konfio that you would expect to raise further capital in 2022, or will we see extension rounds in all of the top three names? Yeah. No, look, it's a super fair question. On one level it's a little bit of a movable feast, obviously, given the business that we're in and obviously the movement in the markets. I think as we sit here today, given what the money these companies, our portfolio on average raised last year, big checks, and some of the deals done year to date, you know, and including the top three with Creditas most recently, and Juspay, I think our predicted outlays are relatively small, at least let's say to year end. That's most of the predictions. Konfío of the top three is the one that's most likely to get a check from us as part of any near term funding round or funding round before year end. Beyond that, and we've gone through this backwards and forwards, we're quite light on portfolio capital needs, you know, as we sit here today. I would say a conservative assumption is, you know, one quarter of the cash pile that we have today may be used for portfolio needs by year end. Very clear. Thanks. Finally, just from my end, just balancing the fact that, okay, with SEK 64 million in cash available, the trade-off here that now that you've completed the list change, I mean, obviously you are in a position to conduct buybacks. Can you say anything about how you trade these trade-offs? I mean, if we were to use Creditas, I'll call it most recent valuation round, it's you're trading at a 60%+ discount to any of this. Is it reasonable to conduct buybacks, or do you prefer to preserve cash to support underlying portfolio at this stage? Yeah. No, it's a super fair question. Look, I think it comes with the upfront statement that we're pro buybacks. We're pro value creation. We're pro buying back our shares at deep discounts and buying back our portfolio that we believe in and a NAV that we believe in at a deep discount. I think that's the statement out the door, and then I'm gonna caveat that with effectively conservatism and prudence at this stage. We sat down and talked with our you know, our audit committee, our board, just amongst ourselves. There's so many moving parts in the markets right now that we would rather be cashed up and conservative as opposed to cashed up and shopping, including our own portfolio via the share price today. I just say that. We've seen many cycles like this before, and we do believe that our cash will be worth more tomorrow than it is today. Also, the things that we can't predict that will happen tomorrow that haven't yet happened today, either in the portfolio with our NAV over the next quarter or two. We'd rather stay on the side of conservatism and sit back on that ideology of buying back right now. We are in position to do it. We can get permission quite quickly should we feel more confident. I think our cash position gives us confidence as a company, but I don't wanna be overly clever and make big, bold bets that we end up in a quarter or two in a position where we thought we were being clever, but we've got less cash and we really need it. I think it's the benefit of all if we sit on that today. Just one final caveat there is, you know, we did do the bond in Q1, at the end of Q1. It was a very positive thing to do, for us to do in terms of having a cash pile and a war chest or just liquidity in a window like this. But we do need to watch the terms of those bonds and make sure we don't cross any lines, and we're nowhere near that yet. We're in a comfortable position, but given market movements around NAV, etc., one needs to be careful that one doesn't. I'd rather just be more conservative on the cash pile today than doing anything with it unless I have to in terms of supporting core portfolio companies. Very clear. That's it from me. Thank you. Super. Cheers. Thank you. We will now take the next question. The next question comes from the line of Andrew Stimpson from KBW. Please go ahead. Your line is open. Thanks. Afternoon, everyone. You might have answered this one already just at the end there, but maybe a little clarification on the cash and the liquid assets, which as you said, is sitting at SEK 64 million, which is pretty healthy. What's the lowest number you'd be comfortable seeing that go to? Presumably that can't. Or you wouldn't ever see that going down to zero. And then how much of that remaining is subject to the sustainable bond covenants, which I guess there are some, as you just alluded to in your last answer. And then I've got one more on valuation methodology afterwards, please. Okay. Cool. Hey, Andrew. Thanks for that. Look, you know, as of end of quarter, $64 million of cash and close to a net positive cash position of $14 million-$15 million if you take out the bonds that's due in three years from a quarter ago. In a decent cash, we're in a net positive cash position. We're obviously in a decent cash position. I'm very happy we talked about this as a team. We're very happy to be net cash positive in this environment where the market is looking for any signs of weakness from any company. Not that we have weaknesses and we'd be happy to spend that money if need be, but I'm quite comfortable sitting here in this kind of environment in a net cash positive position. That's one thing. W e will support our companies and put our capital to work over the next, say, 12 months. That will probably, you know, go past that line and go net negative. I would say it's just gonna be hard to avoid that with coupon payments, of course, and with some portfolio needs as we go. It will keep us back from doing anything too right now, until we see our share price improving, being more realistic versus our NAV, see markets improving, i.e., the openness of the market to give us more equity, and those markets improving obviously leads to the improved conviction for us that those exits we talked about, namely Creditas, in the recent past starts to become a foreseeable option again, which one finds it hard to see in windows like this. You know, I wouldn't like to put hard numbers or lines in it, but we're very comfortable with the position that we sit in today, and we're not looking to eradicate that comfortable position quickly. Got it. That's very clear. Thank you. Then secondly on the valuation methodology, all the extra detail that you guys provided there was very helpful, so thank you for that. I totally get it on the more conservative marks you've used this quarter. Just a question on the mechanics of it from here. Generally, when you use the calibration method but there have been transactions recently, how long do you tend to keep the calibration method for? Is it just a one quarter thing, or can you have it like that for several quarters, or is there a point at which the auditors make you justify it some other way, in a quarter or two? How does that evolution look like from here on the methodology please? Thank you. Cool. Alexis, do you wanna grab that? Yeah, sure. Yeah. So generally what we do is we will be evaluating it for each quarter with our auditors. I would say historically, as we had with COVID when we went into using calibration methodology for some of our portfolio companies, once we go to calibration methodology, we tend to stick with it until we roll off the last transaction and into a full mark-to-model. So that is likely to be the path forward for the calibration methodology companies. Got it. Okay. Thank you. Cool. Thanks, Andrew Stimpson. Thank you. We will now take the next question. The next question comes from the line of Herman Zahl from Pareto Securities. Please go ahead, your line is open. Yes, good afternoon, guys. Happy to hear you're surviving the heat today. Just one question from me, I think. Just on Creditas, I mean, what are you seeing there in terms of repricing of the loan book? I mean, passing on the higher funding costs to the customer. I think we talked about this in Q1, and I promised you to come back in Q2. Also related to that, can you just elaborate a little bit on what the banking license would mean for Creditas more concretely for the cost of funding? Thanks. Yeah, no, super. Thanks, Herman, and good to hear your voice. Look, on the loan book at Creditas, what they've been doing, and they've been quite open about this and in line with market trends, they've been repricing on the asset size of the loans that they underwrite in auto, home, payroll, since Q4 of last year, in line with the rise in the base rates in Brazil and the rise of market rates across the board. They've been on an asset repricing trend, Q4 right up to date, and that probably still continues as of today. Just incrementally adding 50 basis points to 100 basis points, you know, per month, give or take on different loans. Probably a broad-based 10% differential you could see from the average of the portfolio, albeit a mix from about 30% towards 40%. Those kind of average indications. What they've been clear with is that given the nature of their funding versus the nature of their lending, with the rising rates in Brazil, they get hit first, as their funding instruments reprice, you know, almost immediately, on a monthly basis in line with inflation and local base rates, but their asset pricing is fixed. You know, reprices gradually over time as new loans come through. You know, they will or are feeling that downdraft of funding pressure in Q4 into the first half of this year. They get the uplift of the repricing into the second half of this year and into next year. I t's kind of when you'll see in a cycle over time with Creditas, it'll be very linked to that interest rate cycle given the nature of its assets and liabilities today. That process continues, but we're, you know, we're past the part where it's hurting on the funding side, but not getting the benefit on the asset side to now starting to feed through to the asset side, which is quite nice to see. On the funding question, yeah, look, the banking license was something that was always knocked around, you know, at Creditas at board level. It's something that hasn't been needed. Unlike most emerging markets, it's a very deep and rich local funding market in Brazil. That's one of the reasons why we like it so much. Creditas has been able to fund itself directly in local markets, in local currencies with duration matched securitization of FIDC-style vehicles, which has been great for a company like Creditas. To get its, you know, loan book to half a billion dollars towards $1 billion and beyond with local domestic matched funding, which you don't get in many emerging markets. That said, they've always had one eye on, you know, diversification either going international, doing international bonds and obviously translating that back in or more domestically going the deposit route. I think this Andbank, you know, transaction as well as obviously getting equity into Creditas, which is very welcome and getting a great partner in Andbank. It also gives us the banking license, and that gives us access to deposits. It's not necessarily that you know, Creditas is not a digital bank. It's not gonna wake up tomorrow with a mass gathering deposit machine that you see in other digital banks in other markets. You know, more likely they will, you know, use, you know, investment management and private banking platforms to place certificates of deposits at a variety of durations and rates that match their funding, their loan books in things like shorter duration payroll or auto. What it will do is it will give a diversity through cycle, which is generally positive. It should be, in theory, at lower rates than their funding structures, but that will be seen over time. What I think it's the diversity on that you get that gives you downside risk protection and you also get upside kick if you're into lower cost funding. Both of that for us to kick in and what price they can actually place that at versus their current vehicles. I'd very much think it would be on the cost of funding front. Okay, perfect. Thanks for that, good explanation. Okay, that's it for me. Thanks. Super, Herman. Thanks. Thank you. There are no further questions at this time. I would like to hand back over the conference to David Nangle for final remarks. Yeah. Super. Thank you. Look, thanks everybody for taking time out from the middle of the summer to join us on our call today. We're very aware that the headline is not the best of news in terms of moving a NAV down 40% quarter- on- quarter. We'd like to think that it was well flagged if even by the nature of what markets have done and a lot of the peers that we trade against and what they've done over that period. What I would also like to say is that we're feeling very confident in our positioning as a company and our balance sheets, and specifically mostly our portfolio of companies in the top end that I've talked a lot about in this window. We're very aware of the strain and stress in the system. We believe we've taken it on the chin in our NAV and feeling confident about life, albeit we know we have to get through this market cycle and start seeing the benefits in our share price and beyond. Any questions you have, you know, anything we've said today or beyond that, feel free to get in touch directly with myself or with Henrik Stenlund who runs our investor relations department directly. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Speakers, please stand by.