Vostok Nafta Investment Three Months Report 2013 (VNV Global)

Summary

• Net result for the period was USD 23.79 million, compared with 44.47 in the same period of 2012.p.3
• Net asset value was USD 348.73 mln on March 31, 2013 (December 31, 2012: 329.58), or USD 3.95 per share (3.67).p.3
• Net asset value per share in USD increased by 7.62% over January 1, 2013–March 31, 2013, while the RTS index decreased by 4.38%.p.5
• The three biggest investments are Tinkoff Credit Systems (37.6%), Black Earth Farming (27.4%) and Avito (22.6%).p.5
• The Board proposed distributing shares in Black Earth Farming and RusForest worth approximately USD 84 million to SDR holders.p.3
• Naspers invested some USD 50 mln in cash in Avito, taking its post deal stake to just under 19%.p.4
• TCS retail deposits increased by 143% from USD 358.4 mln in 2011 to USD 878 mln in 2012.p.9

Key insights

1. During the first quarter 2013 Vostok Nafta repurchased 1,509,279 SDRs, leaving 88,210,000 shares outstanding.p.3
2. Avito management stated that USD 100 mln EBIT in 2015 is achievable.p.4
3. Black Earth Farming reported a first full year net profit of USD 7.2 mln for 2012 versus a net loss of USD 44.2 mln in 2011.p.7
4. Black Earth Farming's total revenue for 2012 was USD 229 mln, up 179% from USD 82 mln in 2011.p.7
5. Avito revenues in 2012 were almost USD 30 million compared with around USD 10 million in 2011.p.8
6. TCS net loan portfolio increased by 141% in 2012 to USD 1.7 bn and net income reached USD 122 mln compared with USD 68 mln in 2011.p.9
7. TCS Bank priced a debut USD 50 mln, 12-month Euro Commercial Paper at 6.25%.p.9