Vostok Nafta Investment Twelve Months Report 2014 (VNV Global)

Summary

• Net result for the period was USD –127.45 million, compared with 364.63 in 2013.p.2
• Net asset value was USD 388.47 million on December 31, 2014, down from 633.97 on December 31, 2013.p.2
• Net asset value per share was USD 5.24, versus 7.05 a year earlier.p.2
• The group's net asset value per share in USD decreased by 25.65% in 2014, while the RTS index decreased by 45.19% in USD terms.p.2
• Avito reported third quarter 2014 revenues of RUB 1,122 mln, up 77% compared with the third quarter 2013.p.7
• During the fourth quarter 2014 Vostok Nafta repurchased 767,818 SDRs; 74,097,331 shares were outstanding at year-end.p.2

Key insights

1. A GetTaxi mandatory convertible loan with annual interest of 8% was converted into equity in December 2014.p.2
2. The oil price fell close to 50% during the last 6 months, which weighed on sentiment around Russian assets.p.3
3. GetTaxi sees an addressable market of some USD 30 bln in taxi services in the countries it focuses on.p.4
4. TCS paid a dividend of USD 0.303 per share announced in December 2014, although its share price declined some 79% during 2014.p.8
5. Yell.ru recorded over 3.7 mln UMVs in December 2014 and has over 700k reviews.p.9
6. Net result for the fourth quarter was USD 1.07 mln, with the result from financial assets at fair value of USD –0.60 mln mainly coming from the TCS share price decline.p.10
7. In February 2015, 85% of the Delivery Hero equity component was sold for approximately USD 9.4 mln.p.10
8. The model-based valuation of Avito generates a fair value of USD 232 mln.p.17