Vostok Nafta Investment Twelve Months Report 2012 (VNV Global)

Summary

• Net result for the period was USD 119.74 million, compared with –124.10 in 2011.p.3
• The revaluation of Tinkoff Credit Systems and Avito following financial transactions generated a positive result of USD 81.6 mln.p.3
• Vostok Nafta distributed SEK 18 per SDR to shareholders, a total of SEK 1,619 mln (USD 246 mln).p.3
• Net asset value per share in USD increased by 31.32% excluding the redemption programme and decreased by 24.82% including it.p.5
• The three largest investments are Tinkoff Credit Systems (39.6%), Avito (23.9%) and Black Earth Farming (21.0%).p.5
• Avito entered a transaction issuing new shares of USD 50 million, which resulted in a positive revaluation of the holding by approximately 55 percent.p.4
• TCS placed a USD 125 mln 5.5-year debut subordinated Eurobond with a 14.00% coupon.p.9

Key insights

1. The number of outstanding shares at the end of the period was 89,719,279.p.3
2. The average discount of the stock to NAV was 20.6% during 2012.p.3
3. RusForest would raise USD 15 mln through a targeted issue to Nova Capital and a USD 13 mln rights issue to existing shareholders.p.4
4. Black Earth Farming revenue from goods sold during 3Q12 increased by 139% y-o-y to approximately USD 46.9 million.p.7
5. Avito revenues in October 2012 were almost USD 3.5 million compared with full year 2011 of around USD 9.0 million.p.8
6. TCS expects to report a net income of USD 120 mln for the full year 2012.p.9
7. Liquid assets of the group amounted to USD 31.84 mln on December 31, 2012 (December 31, 2011: 37.67).p.11