KINNEVIK CAPITAL MARKET DAY

APRIL 24, 2013

AVITO IN BRIEF

• Avito is the #1 general online classified in Russia*

‒ 3.3bn page views / 32 m UMVs / 10.0m new items (only desktop)

‒ 3.9bn page views / 38 m UMVs / 10.4m new items ( incl mobile)

• Avito is one of 5 Russian sites with over 100 mill page views per day

• Non listing fee monetization has commenced for real

‒ Strong growth continues in 2013 (Revenues in 2012 was $~30.0 m (2011: 10)

• 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 discontinuted marketing efforts

• All focus in on increasing monetization

‒ Revenues of $100m in 2015 with the existing cash conversion

2 * Note: March 2013

RUB / $exchange rate of 30

EVOLUTION OF AVITO

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UM

V (

m)

AVITO CONNECTS THE BUYER AND SELLER

THE SELLER

Before

1. Easy listing process

‒ No registration in Avito

needed

Moderation 24/7

Private or Pro’s

During

2. Answer questions from

buyers

After

3. Seller removes ad when

the object is sold

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THE BUYER

Before

1. No registration in

Avito needed

During

2. Contact the sellers via

email or telephone

After

3. Payment on delivery.

No interaction with Avito

CLASSIFIEDS IS A LOCAL BUSINESS

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• Avito started pushing heavy marketing in Q1 2010 with a focus on Moscow and St.

Petersburg

• In September 2010 we targeted an additional 13 cities, in August 2011 Avito targeted

a further 13 cities (all in all 28 cities) and starting January 2012 Avito went Federal

• Avito is the undisputed leader in most cities and #1 or #2 in Auto and Real Estate

verticals

St. Petersburg

Moscow

Samara

Yekaterinburg

Nizhny

Novgorod

Chelyabinsk Novosibirsk

Kazan

Rostov-na-Donu

Perm

Omsk

Volgograd

Ufa

Vladivostok Krasnodar

Voronezh

Izhevsk

Kemerovo

Krasnoyarsk

Saratov

Stavropol

Tver

Tula

Tyume

n

Yaroslavl

Khabarovsk

Irkutsk Barnaul

Tomsk

AVITO SNOWBALL

For any given weekday*

• Number of Visits: 7 m

which represent 4 m UV

and who look at 145 m

pages

• Of which 14% are buyer

contact

• Of which 6% are sellers

6 * Note: Weekday in April 2013

AVITO IS PART OF LIFE

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SELLER RETENTION IS HIGH BUT NEW SELLERS

ARE STILL IMPORTANT

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We estimate that 90% of all new sellers

are from non-paid channels

EXISTING SELLERS LIST MANY ITEMS

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OCT 10 CO-HORTS

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• Listers

• Items

In October 2010 there were

250K new sellers. Out of

these 150K has returned

since

In October 2010 they listed

475K items. Since then

they have listed 2,1 mill

more items

MARKETING

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MULTIPLE REVENUE STREAMS

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1: Value Added Services

a. Premium

b. Highlight

c. Push-up

d. VIP

2: Shops

• Product mainly targeting

SMEs in all categories

• “Your own site on the site”

• Is constructed to generate

more views of the owner’s

objects

3. Advertising

Examples of formats:

Several types of revenues streams:

• Agencies business

• eCommerce clients

• Real time bidding

• Contextual advertising

AVITO IS GENERATING REAL REVENUES

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PREDICTABLE BUSINESS

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COMPETITION

15

UM

V (

m)

CONSOLIDATION STARTED

• In the short term the acquisition will lead to marginally higher

revenues and reduced marketing

• In the long term, the deal is a game changer

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COOL STATS

• Avito turnover is predicted to be ~2,0%* of Russian GDP in 2012. And the

Russian part of the world economy is 3%

• Avito sells 20% of all used cars in Russia

• Total daily inflow of USD 400 m in the Used Car category everyday, with

>40 000 new used cars listed per day

• Every minute 1,8 cats is listed and 1,9 dogs

• Everyday we have ~140 000 people listing on Avito of which 40.000-50.000

list an item for the first time

17 *Based on the users that explicitly say that they sold the item at Avito. Total value Jan-Aug 2012 amounted to 570 bn RUR. We

forecast full year 2012 to amount to RUR 1000 bn. Russian GDP is assumed to be 60 trillion RUR.

SUMMARY

• Russian internet will continue to grow fast (only China, US, India and Japan

are bigger)

• Online classified is a typical “winner takes it all” market

• Avito has the pole position

‒ Largest

‒ Most liquid

‒ Most well known

• Even without C2C listing fees this is $100 million market within a few years

• In the long run, owning Russian largest market place for used goods will be

an extremely valuable position

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