COMPANY

PRESENTATION
OCTOBER 2013

AVITO.RU
Avito has online classified business in
Russia (Avito.ru), Ukraine (Torg.ua)
Morocco (Avito.ma) and Egypt
(Bekam.com)
This presentation only concerns
Avito.ru if specifically not mentioned
otherwise
The exchange rate 30 RUR/USD has
been used for all Rubles figures
2
AVITO IN BRIEF
3
Avito is the #1 general online classified in Russia*
3.2bn page views / 34m UMVs / 11.4m new items (only desktop)
3.9bn page views / 40m UMVs / 11.8m new items (incl. mobile)
Avito is one of 5 Russian sites with over 100m page views per day and one
of the largest online classifieds in the world
Freemium monetization has commenced for real
Revenues in 2012 was $~30.0m (2011: ~10)
Strong growth continues in 2013.
Avito is has reached critical mass
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 is on increasing monetization and growing in Hero Categories
* September2013. PVs does not include PVs from native mobile apps
THE COMPANY
4
Approximately 270 employees
o (80 Moscow, 50 St Petersburg, 120 Simferopol and 20 in Mena)

Executive management
o Jonas Nordlander (co-founder), Filip Engelbert (co-founder) and
CFO

Swedish holding company
Kinnevik
Founders/mgmt
Naspers
Vostok Nafta
Baring Vostok
Northzone
Accel
0
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EVOLUTION OF AVITO
5
Unique monthly visitors
Million
2009 2010 2011 2012 2013
AVITO CONNECTS THE BUYER AND SELLER
6
The seller The Buyer
Before
Easy listing process
Moderation 24/7
Private or Pros
Before
No registration in
Avito needed
Access to all listings,
no limitations
During
Answer questions
from buyers
During
Contact the sellers via
email or telephone
After
Seller removes ad
when the object is
sold
After
Payment on delivery.
No interaction with
Avito
CLASSIFIEDS IS A LOCAL BUSINESS
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
Tyumen
Yaroslavl
Khabarovsk
Irkutsk
Barnaul
Tomsk
7
AVITO SNOWBALL
8
For any given weekday*
Number of Visits: 8m which
represent 4m UV and who
look at 150m pages
Of which 17% are buyer
contacts
Of which 7% are new
listings/items
* Ocotber 13 2013
AVITO IS PART OF LIFE
9
SELLER RETENTION IS HIGH BUT NEW SELLERS
ARE STILL IMPORTANT
10
0
200 000
400 000
600 000
800 000
1 000 000
1 200 000
1 400 000
1 600 000
1 800 000
2 000 000
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New listers Repeat listers
No. of listers
EXISTING SELLERS LIST MANY ITEMS
11
0
1 000 000
2 000 000
3 000 000
4 000 000
5 000 000
6 000 000
7 000 000
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Items from new lister Items from repeat lister
No. of items
OCT 10 CO-HORTS
12
Listers
Items
In October 2010 there
were ~ 250K new sellers.
Out of these 175K
(70%)has returned since,
about 10% per month
In October 2010 they
listed 460K items.
Since then they have
listed 2.7m more
items
0%
5%
10%
15%
0
50 000
100 000
150 000
200 000
250 000
300 000
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No. of listers Share of initial listers
0%
5%
10%
15%
20%
25%
30%
0
100 000
200 000
300 000
400 000
500 000
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No. of listers Share of total listings
HERO CATEGORIES MAKE UP 70% OF THE PAGE
VIEWS
13
PVs September 2013
7%
1%
5% 4%
11%
3%
1%
4%
19%
45%
Home electronics For business
Home and dacha Pets
Personal belongings Hobby and recreation
Services Jobs
Real estate Transport
22%
11%
9%
4%
4% 4%
4%
3%
3%
2%
33%
Moskovsskaya Leningrad
Krasnodar Nizhny Novgorod
Rostov Samara
Tatarstan Sverdlovsk
Bashkortostan Volgograd
Other
Source: Internal data, Liveinternet
Hero Hero
Hero Hero
AVITO HAS COMMENCED VERTICALIZATION
14
Real estate
Auto Jobs
Services
Separate branding
Increasingly differentiated products
CURRENT TV CAMPAIGN SHOWED INSTANT
RESULTS IN TARGETED CATEGORIES
15
40 000
50 000
60 000
70 000
80 000
90 000
100 000
110 000
120 000
130 000
140 000
Work Services
Campaign
started here
New weekly listings
+36%
+41%
Increase from
campaign start
MARKETING
16
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Online Offline
2010 2011 2012 2013
MULTIPLE REVENUE STREAMS
17
1: Value Added Services
a. Premium
b. Highlight
c. Push-up
d. VIP
2: Shops
Product mai nl y
targeti ng SMEs i n al l
categori es
Your own si te on the
si te
Is constructed to
generate more vi ews of
the owner s obj ects
3: Advertising
Examples of formats:
Several types of
revenues streams:
Agenci es busi ness
eCommerce cl i ents
Real ti me bi ddi ng
Contextual adverti si ng
AVITO IS GENERATING REAL REVENUES*
18
*Note: IFRS, non audited
0
5
10
15
20
25
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
USD 31m
USD 33m
PREDICTABLE BUSINESS
19
A
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Conversion from items
Feb 2013
6,500,000 new listings
$2.4m
Feb 2012
3,800,000 new listings
$1.0m
Feb 2011
1,200,000 new listings
$0.2m
Feb 2010
470,000 new listings
Feb 2009
44,000 new listings
TWO MILLION APP DOWNLOADS AND MUCH
HIGHER ACTIVITY IN MOBILE
20
App downloads
Downloads until October 2013
820
thousand
1,1
million
145
thousand
Source: Flurry, App store, Win store, Google play
AVITO IS BY FAR THE LARGEST CLASSIFIEDS SITE
IN RUSSIA THANKS TO STRONG GROWTH
Monthly page views September 2013 all categories
Billion
3,86
1,26
0,89
0,40
0,26
0,22 0,19
21
FEDERAL LEADER IN AUTO AND REAL ESTATE
BUT BEHIND IN JOBS
22
1 600
1 200
870
1,20
0,53
0,37
Avito auto
1

Whole Russia
Three leading players
Avito only national
player (Drom.ru in the
East, Auto.ru in
Moscow/St. Pete.)
Avito real
estate

Moscow
105
47,4
6
0,50
0,29
0,23
No strong national real
estate competitor
Moscow one of most
competitive regions
Avito jobs
and services
2

Whole Russia
332
229
126
0,97
0,34
0,25
hh.ru is dominating site
on revenues and has
strongest brand
Monthly page views and listings for August 2013
PVs, Millions Listings
3
, Millions Comment
1 Excluding auto spare parts in listings
2 For avito.ru PVs for jobs and businesses category, for listings only including jobs and services subcategories
3 For jobs, vacancy listings/jobs wanted listings
DEEP DIVE: AUTO IN MOSCOW AND MOSCOW
REGION 2011-2013
23
Estimated monthly pageviews
Mi l l i on
0
100
200
300
400
500
600
700
800
900
1 000
jan-11 apr-11 jul-11 okt-11 jan-12 apr-12 jul-12 okt-12 jan-13 apr-13 jul-13
Avito has increased 70% YoY
Auto has decreased 11% YoY
DEEP DIVE: AUTO IN ST. PETERSBURG
2011-2013
24
Estimated monthly pageviews
Mi l l i on
0
20
40
60
80
100
120
140
160
180
jan-11 apr-11 jul-11 okt-11 jan-12 apr-12 jul-12 okt-12 jan-13 apr-13 jul-13
AVITO MEASURES WELL AGAINST THE PORTALS
25
Real estate
Monthly reach August 2013 (cities 100k+) Thousand visitors
2 939
6 974
6 158
1 565
1 837
4 334

Auto
Source: TNS
SLANDO/OLX WAS A CONSOLIDATION MOVE
26
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
SOME COOL STATS
27
1 Based on the users that explicitly say that they sold the item at Avito. Total value Jan-May 2013 amounted to 1 trillion RUB. Full year estimated at 2.4 trillion
RUB. Population of Russia is 143 million. Average salary (gross) is ~31 thousand RUB
2 But during that time another 6m ads would be added
3 Autostat.ru estimates no. of sold used cars Jan.-Jul. 2013 as 3.038m. In the same period, Users explicitly said 1.214m used cars were sold on Avito.ru
4 Number of internet users estimated at 76.5m by TNS in May 2013, same period Avito had ~25m unique visitors according to TNS
5 Data for July 2013
Source: Internal data, RIA Novosti, Autostat, GKS.ru
560 USD per capita and year goes through Avito
It would take 15 days to scroll through all ads currently on the site
(if scrolling day and night at a rate of 10 ads per second)
2

~40% of all used cars in Russia are sold on Avito
3
One third of Russians with internet go
to Avito every month
4

Every minute 2.7 cats and 2.3 dogs are
listed on Avito.ru
5
(about half an average Russian monthly salary)
A new seller is added every third second
10% of new sellers pay Avito
RISKS
28
Monetization will not come
Monetization is largely an execution game in Hero categories.
However, Avito does not know to what extent Auto dealers
and RE agents/developers will pay Avito. Both markets are
relatively underdeveloped
Corporate governance
With increased size come increased complexity and more
stake holder show interest
The X factor
Changes in legal framework
PRIORITIES
29
Increase monetization in Hero categories
Organizational catch-up and growth
Increase monetization on our platform with high
margin revenues
REVENUE PER UNIQUE STILL MUCH LOWER THAN
FOR PEERS IN DEVELOPED COUNTRIES
30
1 Average exchange rate for 2012 used where applicable
2 UMV estimated at 4m
3 Trade me does not disclose monthly visitors, instead complete member base used=3.2m people or ~67% of population.
Thus, revenue/UVM likely understated
Source: Annual reports, company websites, estateagenttoday.co.uk
Estimated annual revenue per unique monthly visitor 2012
USD
1
~54
2
~47
~36
3
~21

~8 ~1
Peer

Country

SUMMARY
31
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
In the long run, owning Russian largest market place for used
goods will be an extremely valuable position


APPENDIX
32
INTERNET PENETRATION GROWING FAST WITH
BIG CITIES LEADING THE DEVELOPMENT
33
Source: Internetworldstats.com, Goldman Sachs
Internet penetration
75%
70%
70%
69%
65% 67% 69% 71% 73% 75%
Moscow
Users
St Pete
users
Russian cities
100k+
Russian cities
100k+ ex
Moscow/
St pete
9.9
12.1
17.2
20.4
23.5
28.5
35.1
43.0
49.4
55.0
60.6
66.2
71.8
77.4
83.0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2
0
0
3

2
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0
4

2
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0
5

2
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6

2
0
0
7

2
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8

2
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0
9

2
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1
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2
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1
1

2
0
1
2

2
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1
3
E

2
0
1
4
E

2
0
1
5
E

2
0
1
6
E

2
0
1
7
E

Internet penetration 2013E
INTERNETS SHARE OF ADVERTISING CLOSE TO
WEST, BUT FAR BEHIND PER CAPITA
34
Source: ZenithOptimedia, ACAR, Goldman Sachs
5%
6%
6%
7%
8%
11%
19%
19%
19%
21%
24%
28%
28%
29%
30%
34%
Belgium
Brazil
Ukraine
Turkey
Argentina
Switzerland
Russia
USA
Finland
Germany
Netherlands
Canada
Denmark
Sweden
Norway
UK
Internet ad.spend
per capita, 2012
102
157
102
112
87
73
63
66
97
13
69
9
3
1
5
23
Internets share of advertising spend
Percent