Vostok Nafta Investment Six Months Report 2013 (VNV Global)

Summary

• Net result for the period was USD –24.68 million, compared with 31.27 in the same period of 2012.p.3
• Net asset value was USD 239.99 mln on June 30, 2013 (December 31, 2012: 329.58), or USD 2.72 (3.67) per share.p.3
• Net asset value per share in USD decreased by 25.94%, or by 7.35% excluding the distribution of shares, while the RTS index decreased by 16.47%.p.5
• In the second quarter the net asset value per share in USD decreased by 31.18%.p.5
• Luxor Capital Group acquired the SDRs of Lorito and Zebra, which represented 31.1% of the total, and now controls 33.69% of outstanding SDRs.p.3
• The TCS stake was valued at USD 131,000,000, or 53.8% of the portfolio; retail deposits rose 90% y-o-y from USD 510.5 mln in 1Q12 to USD 971.7 mln in 1Q13.p.7
• Avito was valued at USD 78,941,797, or 32.4% of the portfolio; its revenues in 1Q13 were USD 13 million compared with around USD 30 million for full year 2012.p.6

Key insights

1. Luxor Capital is a New York-based investor with USD 5.5 bln under management that also owns 9% of Schibsted.p.3
2. More than 5,000 used car dealers list their inventory on Avito.ru, more than 2.5x its nearest competitor.p.4
3. TCS tapped USD 75 mln of its LTII subordinated Eurobond and USD 100 mln in rouble bonds with a 10.25% coupon.p.4
4. In 2Q13 Avito had an average of 37 million unique visitors and 10.7 million new listings per month.p.6
5. TCS increased its loan portfolio by 14% since 4Q12 to USD 1.96 bn and reported net income of USD 31.4 mln in 1Q13.p.7
6. TCS Bank's market share increased to 7.7% as of July 1, 2013, compared with 7.4% as of 1Q13.p.7
7. Liquid assets of the group amounted to USD 28.07 mln on June 30, 2013 (December 31, 2012: 31.84).p.8