Financial Report for the Fourth Quarter and Twelve Months 2017 (VNV Global)

Summary

• Net result for the period was $161.39 million, with earnings per share of $1.94.p.1
• Net asset value was $879.99 million on December 31, 2017, corresponding to $10.40 per share.p.1
• Net asset value per share in USD increased by 22.79% over the year, driven mainly by a revaluation of Avito.p.1
• Vostok values its stake in Avito at $591.9 million ($4.5 billion for the entire company), a 31.8% increase in valuation, and owns 13.2% of the company.p.7
• A follow-on investment into CarZar of $1.5 million was finalized in November 2017.p.1
• During the quarter the Company repurchased 150,000 shares (SDRs); 84,582,357 shares were outstanding at the end of the period.p.1

Key insights

1. Avito is seen as on the route to making $300 million in EBITDA, giving a multiple of 15x on a $4.5 billion valuation.p.3
2. The total addressable market for real estate agents' marketing is about RUB 17.5 billion, of which around RUB 8.5-9.0 billion goes to online channels.p.4
3. Avito Real Estate is estimated at around RUB 90 billion or $1.5 billion, based on a 60% EBITDA margin and a multiple of 25.p.5
4. Delivery Hero generated a 22% IRR through coupon payments and equity compensation.p.2
5. BlaBlaCar has over 60 million members in 22 countries.p.8
6. Gett has raised over $640 million in venture funding.p.9
7. babylon has over 900,000 registered patients in the UK.p.10