Vostok Nafta Investment Nine Months Report 2013 (VNV Global)

Summary

• Net result for the period was USD –25.44 million, compared with 37.27 in the same period of 2012.p.3
• Net asset value was USD 242.59 mln on September 30, 2013 (December 31, 2012: 329.58), or USD 2.70 (3.67) per share.p.3
• Net asset value per share in USD decreased by 26.55%, or by 8.30% excluding the distribution of holdings, while the RTS index decreased by 6.84%.p.5
• Vostok Nafta sold 13,824,381 TCS shares at USD 17.50 per share for a total purchase price of USD 241,926,667 before applicable fees.p.7
• The remaining TCS stake was valued at USD 131 million, or 53.8% of the portfolio.p.7
• Avito was valued at USD 78,941,797, or 32.4% of the portfolio and 13.5% of shares outstanding.p.6
• At current prices the value of 100% of Avito is some USD 2.8 bln.p.4

Key insights

1. The primary part of the TCS placing was USD 175 mln, with the rest of the offering in the form of secondary shares.p.3
2. The auditors qualified their review conclusion because of uncertainty in valuing TCS Group Holding PLC.p.3
3. Avito saw some 2.7 million people list something, of whom about 1.9 mln were repeat listers.p.4
4. Ozon, the leading Russian e-commerce player, is raising USD 100 mln for further expansion.p.4
5. Avito revenues in H1 13 were USD 33 million, of which approximately USD 20 million was generated in the second quarter.p.6
6. Horizon Capital invested USD 40 million for a 4% share in TCS in Q4 2012, valuing the whole company at USD 1 billion.p.7
7. The over-allotment option would allow Vostok Nafta to sell up to an additional 6,353,428 shares for USD 111,184,990.p.7
8. Liquid assets of the group amounted to USD 19.94 mln on September 30, 2013 (December 31, 2012: 31.84).p.8