Annual Report 2017 (VNV Global)

Summary

• Net asset value was $879.99 million on December 31, 2017, or $10.40 per share.p.17
• Net asset value per share in USD increased by 22.8%, while the MSCI Emerging Markets index increased by 7.1% in USD terms.p.17
• The four biggest investments were Avito (62.2%), BlaBlaCar (12.5%), Gett (6.2%) and Propertyfinder (3.0%).p.17
• Avito reported revenues of RUB 15,466 million, up 32% compared with the previous year.p.21
• New portfolio companies were babylon (£17.3 million), CarZar ($3.0 million) and Agente Imóvel ($1.0 million).p.17

Key insights

1. Vostok views $4.5 billion for Avito as not aggressive, expecting the company to be en route to $300 million in EBITDA at a 15x multiple.p.6
2. In January 2018 Vostok received an additional $10.2 million in dividends from Avito.p.6
3. Delivery Hero was a successful investment, generating 22% IRR through coupon payments and equity compensation.p.4
4. The present value of Avito's real estate vertical alone is estimated at around RUB 90 billion or $1.5 billion, assuming a 60% EBITDA margin.p.12
5. The total addressable market for real estate agents' marketing spend in Russia is about RUB 17.5 billion per year.p.11
6. Since 2015 Vostok has invested a total of €107 million in BlaBlaCar and owns approximately 9.3% on a fully diluted basis.p.23
7. BlaBlaCar has over 60 million members in 22 countries.p.22
8. Gett has raised over $640 million in venture funding.p.24
9. Propertyfinder's total leads generated were up 48.8% year on year in the fourth quarter.p.26