Vostok Nafta Investment Ltd Presentation September, 2013

Transcription

1 Vostok Nafta Investment Ltd Presentation September, 2013

2 Business Concept Founded by Adolf Lundin in years background in Oil & Gas and Mining 30% held by Swedish and International institutional investors Old Vostok Nafta Focus on Russia and its neighboring countries Old Vostok Nafta Focus on Oil and Gas Gazprom New Vostok Nafta Broader investment universe Shifting focus towards Private Equity New Vostok Nafta Q13 highlights Distribution of holdings in Black Earth Farming and RusForest to shareholders completed. Luxor Capital Group, a New York based hedge fund, acquired The Lundin family s stake of the Company on May 21, Luxor Capital Group is thus the new main shareholder and controls 33.69% of the outstanding SDRs Page 2

3 Page 3 NAV and SDR Price Development May 2007 May 2013

4 The Vostok Nafta Portfolio Before and after SDR redemption program RusForest 1.3% Avito 24.0% Including Redemption Assets As per April 30 Others and cash 10.6% Tinkoff Credit Systems 39.8% Excluding Redemption Assets As per June 30 Others and cash 13.7% Tinkoff Credit Systems 53.8% Avito 32.4% Black Earth Farming 24.3%

5 Avito Avito is the largest and the fastest growing online classified in Russia 3.6 bn page views/ 36 mln UMVs/ 10.5 mln new items per month in August Avito has become the fourth largest site in Russia measured in unique monthly visitors Avito is one of the largest online classifieds in the world Avito is no longer dependent on marketing Existing user base and organic growth will generate significant profit in 2013 Avito will see a 5-15% growth loss with discontinued marketing efforts Avito announced the closing of the Naspers transaction in March On May 26, 2013 Avito announced the completion of the integration with newly merged Slando.ru and OLX.ru At the end of 2Q13 Avito had approx. USD 100 mln in cash which will be used to further strengthen Avito s position in the key auto and real estate categories as well as expanding into new markets Unique Montly Visitors Jan 2009-Jul 2013 Page 5

6 Avito International Comparison Page 6 Source: Avito presentation Dec 2012

7 Avito Russian peers comparison Monthly page views August 2013 all categories Billion Page 7

8 Avito Mobile 2 million app downloads and high mobile activity App downloads 670 thousand 1 million 110 thousand Downloads until August 2013 Page 8

9 Avito Multiple Revenue Streams Russia has the world s fifth largest online audience Avito is the undisputed leader in most cities and #1 or #2 in Auto and Real Estate verticals. Non listing fee monetization has commenced for real Revenues in March 2013 at almost USD ~6 mln, full year 2012 was around USD ~30.0m (2011: 10 mln) Avito has reached critical mass Existing user base and organic growth will generate mln in yearly profit. Opex excluding marketing at USD ~1-1.5 mln per month All focus is on increasing monetization Revenues of USD 100 mln in 2015 with current cash conversion 1: Value Added Services 2: 3: Advertising Page 9

10 Avito Non listing fee monetization has commenced for real Revenues in 1Q13 at almost USD ~13 mln, full year 2012 was around USD ~30.0m (2011: 10 mln) Avito has reached critical mass Existing user base and organic growth will generate mln in yearly profit. Opex excluding marketing at USD ~1.5-2 mln per month All focus is on increasing monetization Earnings potential of USD 100 mln in 2015 with current cash conversion Vostok Nafta owns 13.8% of Avito fully diluted In the long run, owning Russia s largest market place for used goods will be an extremely valuable position *IFRS, non audited Avito is generating real Revenues* USD 33m USD 31m Unique Page 10

11 Avito AVO & Conversion Page 11

12 Avito Verticalization has commenced Auto Avito Jobs is the fastest growing Real estate Services Separate branding Increasingly differentiated products Page 12

13 Avito Page Views in August 2013 Categories & Geographical 70% PVs comes from the most important verticals Page 13

14 Avito Russian peers comparison, Verticals Page 14

15 Avito Russian peers comparison Auto in St. Petersburg Page 15

16 Avito Marketing Development Page 16

17 Avito - Seller retention is high but new seller are stil important New listers Repeat listers Page 17

18 Avito Existing sellers list many items Items from new listers Items from repeat listers Page 18

19 Avito International Comparison Estimated annual revenue per unique monthly visitor 2012 Page 19

20 Avito International Comparison Internet s share of advertising close to west, but far behind per capita Page 20

21 Tinkoff Credit Systems Tinkoff Credit Systems is the first purpose-built credit card lender in Russia Highly profitable since 2009 with stable utility-like interest and recurring fees revenue stream Run by a management team with proven track record in Russia s consumer lending market via previous experience at Visa, Russian Standard, McKinsey and Reader s Digest Unique growth potential Growth driven by a growing number of middle class households and the emergence of online shopping portals. Credit card lending is the fastest growing consumer debt category. Credit card penetration still extremely low (around 10% in 2012). Regional diversity The portfolio is spread out evenly through out the country No region has more than 6% of the customer base. Page 21

22 Tinkoff Credit Systems Profitability Gross interest income in 1H13 amounted to USD 520 mln vs. USD 271 mln in 1H12. Net Income in 1H13 amounted to USD 79.3 mln vs. USD 52,25 mln in 1H12. Growth The loan portfolio increased to USD 2.17 bn as of June , up from 1.7 bn as of 4Q12. Market share of 7.7% as of July 1, 2013, placing TCS as the # 3 credit card issuer in Russia by market share. Liquidity Retail deposits increased to USD mln as of June 30, 2013, up from mln as of 4Q12. As of June 30, 2013, cash amounted to 11.6% of Total Assets and 28.6% of retail deposits. Vostok currently holds a 13.1% stake in TCS fully diluted Portfolio Size (USD) H13 Page 22

23 Tinkoff Credit Systems Well-balanced funding mix of retail deposits and wholesale funding In March 2013, TCS issued a tap of USD 75 mln of its LTII subordinated Eurobond In May 2013, TCS announced an early redemption of SEK 550 mln 2011/2013 bonds. N1 Capital Adequacy is 17.6%as of May 1, 2013 Risk management successfully tested during crisis Liabilities structure as per February 2013 Conservative credit risk policy TCSs RUB bonds included into the CBR Lombard list TCS is rated by Fitch and Moody s B+ (stable) / B2 (stable) respectively Page 23

24 Tinkoff Credit Systems Conservative Provisioning Policy Well-balanced funding mix of retail deposits and wholesale funding Over USD 475 mln in wholesale funding was raised in 2012 to date through two local bonds totaling RUB 3.5bn, a USD 250 Eurobond due in Sep 2015 and a subordinated Eurobond of USD 125 mln due in June 2018 N1 Capital Adequacy is 17.6%as of February 1, 2013 On 21 March 2013, TCS Bank successfully priced its debut US$50m, 12-month Euro Commercial Paper (ECP) at 6.25%. Liabilities structure as per February 2013 Risk management successfully tested during crisis Conservative credit risk policy TCSs RUB bonds included into the CBR Lombard list TCS is rated by Fitch and Moody s B+ (stable) / B2 (stable) respectively Page 24

25 6 Months & 2Q Report 2013 Income Statements Group (USD thousands) Jan 1, 2013 Jun 30, 2013 Jan 1, 2012 Jun 30, 2012 Apr 1, 2013 Jun 30, 2013 Apr 1, 2012 Jun 30, 2012 Operating income -18,452 32,587-43,352-11,424 Operating expenses -6,168-2,496-5,077-1,354 Dividend withholding tax expenses -27 2, Other operating expenses - -1, Operating result -24,647 31,635-48,457-12,854 Net financial items Result before tax -24,683 31,272-48,469-13,198 Taxation Net result -24,683 31,272-48,469-13,198 Page 25

26 6 Months & 2Q Report 2013 Balance Sheets Group (USD thousands) Jun 30, 2013 Dec 31, 2012 Tangible non current assets Financial non current assets 209, ,793 Current assets 33,785 37,392 Total assets 243, ,207 Shareholders' equity 239, ,584 Tax payables Other current liabilities 2, Accrued expenses 1, Total shareholders' equity and liabilities 243, ,207 Page 26

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