London, UK, 9 September 2019

Edison issues update on FinLab (A7A)

Following the high transaction activity in H218, FinLab has focused on value creation within its existing fintech companies. This includes initiating the transformation of Kapilendo into a banking partner for SMEs after the acquisition of wevest Digital in September 2019 and two follow-on funding rounds at Iconic Holding. Despite the c 25% decline in Heliad Equity Partner's share price in H119, the NAV per share remained broadly stable (EUR20.21 vs EUR20.44 at end-2018) due to the positive impact from revaluations in the period. However, we note that Heliad's share price has rebounded 28% since end-June 2019, presumably driven by stock catalysts at its largest portfolio holding, flatex.

FinLab's last reported NAV at end-June 2019 was EUR20.21 relative to which the shares are trading at a discount of 15%. Heliad Equity Partners is also trading at a discount (c 42% relative to its end-June 2019 NAV). While it is typical for investment companies to trade at a discount, if we valued Heliad at par with its end June NAV, this would translate into FinLab's current discount of c 23%.

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