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Rambler Media. Capitalising on the fastest growing media market and online community in Europe. October 2006. Rambler Media at a glance. Internet. Rambler Media was a pioneer in identifying the internet opportunity in Russia, and commenced operations in 1996
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Rambler Media Capitalising on the fastest growing media market and online community in Europe October 2006
Rambler Media at a glance Internet • Rambler Media was a pioneer in identifying the internet opportunity in Russia, and commenced operations in 1996 • 10 years on, its main search engine and media portal, Rambler.ru has become the largest multi-service internet resource for the Russian speaking community worldwide and provides innovative solutions to advertisers • 65% of internet users in Russia regularly visit rambler.ru* • Over 23 million monthly users of Rambler Media web properties* • A one stop shop offering over 50 different information, communication, e-commerce and entertainment services TV Mobile • In 2003, Rambler Media launched Rambler TV, adding a new media channel to its internet offering and tapping into the $2.3bn TV advertising market in Russia • A documentary and entertainment TV channel reaching 40 million viewers • Attracting a premium audience with high disposable income • In 2004, Rambler Media launched Rambler Mobile to provide mobile value added services and capitalise on growing widespread mobile usage in Russia and the CIS • Revenue sharing agreement with major GSM operators, reaching 95% of mobile users in Russia • Services include Ringtones, interactive SMS, SMS Chat/Dating/Voting, News 2 • Source: *Comcon – First Quarter 2006 ; Company – July 2006
…in the early phase of its growth • Russian Advertising market is one of the World’s largest and fast growing – over $6bn in 2005 • Internet has emerged as a new efficient and targeted media channel, set to outpace the overall market growth (+65% CAGR between 2002 and 2005) • Mobile usage is also accelerating with Value Added Services revenues growing 115% CAGR since 2001 at $1.5bn in 2005 • Television continues to grow and remains the principal advertising channel, generating $2.3bn in 2005 Russian Advertising MarketFrom $1.3bn to $7.1bn* in 5 years Russian Internet and Mobile penetration** 18% internet and69% mobile penetration in 2006 (US$m) (000s) +40% CAGR • Note: Figures for 2001 and 2002 are based on above-the-line advertising only. Figures for 2003 onwards include above-the-line and below-the-line advertising • Note: Mobile Value Added services include voice content, SMS, MMS and premium SMS content 3 • Sources: **Company / Ministry of Communications / Central Bank / J’son & Partners • Source: *Russian Association of Advertising Agencies
A leading brand & essential partner… Internet 20.9million unique users of Rambler.ru every month1.5billion monthly page views… • Core business since creation in 1996 • A preferred web resource for Russian speaking audiences worldwide • Offering proprietary web search, e-mail, news, instant messaging, e-commerce services: • www.rambler.ru: main internet portal and search engine • www.lenta.ru : online Russian newspaper • www.price.ru : price comparison • www.siting.ru : website creation / editing • www.mama.ru : parenting information • www.doktor.ru : health related advice • www.ferra.ru : computer equipment information • Generating revenues primarily from banner advertising, sponsored key word searches and e-commerce • Supported by a full-service wholly-owned advertising agency 4
…for users Internet • Established brands • Rambler.ru reaches 65% of internet users in Russia* • Lenta.ru attracts 2.6 million unique visitors per month** • Proprietary search engine with Russian language tailored morphological module • Advanced multi-service portal • Email, News, Radio • Search engine by word or category • E-commerce, instant messaging… • B2B platform – Top 100 Rating and Classification • Real time monitoring of over 900,000 websites across 57 industries • Recording number of unique users and page views • ISO 9001:2000 Certified Email Search Services News Top 100 Weather Horoscopes On line radio Rambler-ICQ instant messaging 5 • Source: *Comcon – First Quarter 2006 • Source: **Company – July 2006
First Half 2006 results highlights Operating Highlights • 100% period on period increase in total revenue to US$ 16 million (US$ 8 million) • Internet revenue up 137% to US$ 12.3 million (US$ 5.2 million) • TV sales up 129% to US$ 2.2 million (US$ 0.96 million) • Group EBITDA* profitable for second consecutive half year • Over 50% increase in number of internet unique monthly users of Rambler.ru to 21 million vs 25-30% of Internet penetration growth in Russia • More than 1.6 million Rambler-ICQ instant messaging unique users per month in less than one year after lauch • Acquisition of 51% of Price Express, a leading Russian price comparison internet company • Exclusive partnership with Trader Media East Ltd to launch online classified ads in Russia with leading newspaper Iz Ruk V Ruki • Acquisition of 51% of online Russian social network Damochka.ru and 51% of online banner technology company Bannerbank • *Earnings before interest, tax, depreciation and amortization 6
Moving into Profitability Revenue composition Financial Highlights • 100% revenue growth period on period to US$16 million (US$ 8 million) • 78% of total revenue came from internet • Net profit of US$ 2.5 million (net loss of US$ 2.3 million) • Strong balance sheet with $20 million cash at end of June 2006 Revenue and EBITDA* growth First Half 2006 Revenue and EBITDA* 20 11.4 15 10 US$m 3.3 2.3 US$m 5 1.3 (1.4) (0.3) 0 -5 Internet Mobile VAS TV -10 Revenue EBITDA* 7 • *Earnings before interest, tax, depreciation and amortization
