Significant events during the quarter

Fram focuses on cost efficiency & profitability improvements

As of 31st of January 2024, the net asset value amounted to 232 mSEK (64 SEK per share), which was approximately +107% above the closing price of the Fram B share on the same day and represented a decrease of -6% compared to 31st of December 2023. The drop in NAV was primarily driven by more conservative NAV methodologies being applied to EveHR and DragonLend, as the annual valuation review deemed the previous investment round valuations to be too old to be prudently relevant.

During Q4 2023 and January 2024, Fram has actively implemented cost efficiency measures both in the ventures and on the group level to reduce the monthly burn rate in order to extend the overall runway as well as speed up the ventures’ path to profitability.

The negotiation for the sale of DragonLend to Gologiq is still ongoing, but pending the merger between RCRT and Gologiq, which has been slowed down by US regulatory and stock exchange approvals. Fram notes that the transaction progress has been unusually slow and no SPA is yet signed.

The current portfolio of Fram consists of 5 holdings, including 4 private and 1 public tech company, with a total invested amount of 52 mSEK. As of 31 January, the total NAV of these companies reached 211 mSEK, rendering a latent return multiple of 4.1x on the invested capital.

Global and SEA economic highlights: signs of recovery

Venture capital investment globally declined to a five-year low in Q4 2023, despite the overall bullish sentiment in the equity markets, with a 24% quarter-on-quarter decreased to 58 bnUSD, indicating a cautious approach in deal-making activities. However, the AI sector continued to shine brightly, attracting significant investments, including substantial funding rounds for US-based Anthropic and Metropolis, highlighting the growing investor interest.

In Southeast Asia (SEA), despite a slight downward adjustment in GDP growth forecasts due to weakened global demand, the region saw robust year-end startup fundraising, particularly in the e-commerce and fintech sectors. Additionally, the venture-backed IPO market saw notable activity with significant public offerings from J&T Express in Indonesia and WeBuy in Singapore, albeit with mixed results in terms of valuations compared to previous benchmarks.

Vietnam's economy, in particular, showed positive signs of recovery, with an upgraded real GDP growth forecast to 5.3%, underpinned by improvements in trade, industrial production, and consumption. The country, however, experienced a slowdown in venture capital funding in Q4, contrasting sharply with the robust activity in the previous quarter.

For further information, please contact

Hanh Mai, CEO
Phone: + 84-33-4700011
Email: hanh.mai@fram.asia

Tuyet Phan, Group Finance Director
Phone: + 84-79-8811021
Email: tuyet.phan@fram.asia

Christopher Beselin, Chairman
Phone: + 84-34-71273 14
Email: christopher.beselin@fram.asia

Certified Adviser

Svensk Kapitalmarknadsgranskning AB (SKMG), https://www.skmg.se

Briefly about Fram^

Fram^ is a listed investment company focused on the digital consumer, blockchain and other tech in Southeast Asia. The management group and board of Fram^ have 100 years of joint experience of company building and investments, both in emerging markets and in Europe. The company management's collective experience from global and regional leaders such as Kinnevik, Cevian Capital, Bpifrance, Eurazeo, Boston Consulting Group, Rocket Internet, Ericsson, Lazada and Bima constitutes a multifaceted and necessary foundation for successfully investing in companies in emerging markets and helping them to grow.

This information is information that Fram Skandinavien is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-02-09 08:00 CET.

Attachments

FRAM Quarterly Report 2023 12

© Modular Finance, source Nordic Press Releases