Nine Months Report 2011 (VNV Global)

Summary

• Net result for the period was USD –96.09 million, with earnings per share of USD –0.95.p.3
• Net asset value was USD 529.26 mln on September 30, 2011 (December 31, 2010: 625.43), or USD 5.24 per share.p.3
• Net asset value per share in USD decreased by 15.38% over the period, while the RTS index decreased by 24.24%.p.3
• In the third quarter, net asset value per share decreased by 19.80% (RTS index: –29.66%).p.7
• The three biggest investments are TNK-BP Holding (20.6%), Black Earth Farming (15.5%) and Tinkoff Credit Systems (9.5%).p.7
• Alrosa's share value development was 131.9% between January 1 and September 30, 2011.p.11

Key insights

1. Management expects an improvement of some 25–40% on Black Earth Farming's blended yield of some 3 tons per hectare.p.6
2. Black Earth Farming net crop yields for winter wheat and spring barley amounted to 2.5 and 2.1 tons per hectare respectively.p.10
3. TNK-BP revenues for 9M11 increased by 38% relative to 9M10.p.9
4. Tinkoff Credit Systems revenue was up 146% to USD 235.8 million during the first 9 months of 2011.p.12
5. Avito's value development was 121.6% over January 1 to September 30, 2011.p.13
6. With about 60 million internet users and penetration of about 42%, Russia represents the second largest internet market in Europe.p.13
7. Alrosa accounts for 96 percent of Russia's total diamond production and approximately 25 percent of global diamond production.p.11