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

5

10

15

20

25

30

35

40

45

Jan

Mar

Maj

Jul

Sep

Nov

Jan

Mar

May

July

Sept

Nov

Jan

Mar

May

July

Sept

Nov

Jan

Mar

May

July

Sept

Nov

Jan

Mar

May

July

Sept

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 Pro’s

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 S

ep

-09

No

v-0

9

Ja

n-1

0

Ma

r-10

Ma

y-1

0

Ju

l-10

Sep

-10

No

v-1

0

Ja

n-1

1

Ma

r-11

Ma

y-1

1

Ju

l-11

Sep-1

1

No

v-1

1

Ja

n-1

2

Ma

r-12

Ma

y-1

2

Ju

l-12

Sep

-12

No

v-1

2

Ja

n-1

3

Ma

r-13

Ma

y-1

3

Ju

l-13

Sep

-13

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 S

ep-0

9

No

v-0

9

Ja

n-1

0

Ma

r-10

Ma

y-1

0

Ju

l-10

Sep-1

0

No

v-1

0

Ja

n-1

1

Ma

r-11

Ma

y-1

1

Ju

l-11

Sep-1

1

No

v-1

1

Ja

n-1

2

Ma

r-12

Ma

y-1

2

Ju

l-12

Sep-1

2

No

v-1

2

Ja

n-1

3

Ma

r-13

Ma

y-1

3

Ju

l-13

Sep-1

3

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

Oct-

10

Dec-1

0

Feb

-11

Ap

r-1

1

Ju

n-1

1

Au

g-1

1

Oct-

11

Dec-1

1

Feb

-12

Ap

r-1

2

Ju

n-1

2

Au

g-1

2

Oct-

12

Dec-1

2

Feb

-13

Ap

r-1

3

Ju

n-1

3

Au

g-1

3

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

Oct-

10

Dec-1

0

Feb

-11

Ap

r-1

1

Ju

n-1

1

Au

g-1

1

Oct-

11

Dec-1

1

Feb

-12

Ap

r-1

2

Ju

n-1

2

Au

g-1

2

Oct-

12

Dec-1

2

Feb

-13

Ap

r-1

3

Ju

n-1

3

Au

g-1

3

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 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 t ime bidding

Contextual advertising

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

AV

O f

or

Pre

miu

m s

erv

ices

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 auto1

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 services2

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 Listings3, 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

Million

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

Million

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

Недвижимость

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 Avito3

One third of Russians with internet go

to Avito every month4 Every minute 2.7 cats and 2.3 dogs are

listed on Avito.ru5

(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

USD1

~542

~47 ~363

~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%

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013E

2014E

2015E

2016E

2017E

Internet penetration 2013E

INTERNET’S 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

Internet’s share of advertising spend

Percent