1. eVenture Capital Partners
Internet market development in Ukraine
Internet Ukraine 2009
Kiev, April 23th, 2009
This report is solely for the use of client personnel. No part of it may be distributed, quoted, or
reproduced outside the client organization without the prior written approval of eVenture Capital
Partners GmbH . This material was prepared by eVenture Capital Partners GmbH for use
during an oral presentation; it is not a complete record of the discussion

2. Agenda
• General internet market overview
• Internet business development
Page 2

3. Ukraine is still behind large European and CEE countries in terms of internet
users and penetration but fastest growing
COMPARISON OF INTERNET USAGE IN UKRAINE VS. LARGEST EUROPEAN INTERNET MARKETS
Number of Internet users 2008, Mio Internet Penetration 2008, %
- European countries >35m inhabitants -
UK
Germany 55 71
Germany 67
43
UK
Spain
France 67
40
France
Russia 65
38
Italy Poland 52
28
Italy
Spain 49
27
Russia
Poland 27
20
Ukraine Ukraine 22
10
09e 10e
09e 10e
Page 3
Source: Internetworldstats Dec 2008

4. With current growth rate of about 80% Ukraine can reach German level of high
speed internet access in 5 years
HIGH SPEED INTERNET ACCESS IN UKRAINE
High speed internet access in Ukraine by lines (DSL, F2B, Cable)
• Since 3Q2007 number of private
high speed internet users by lines
Germany – 23mln*
grew by 79%
Connections,
43%
• Main driver of high speed internet
mln.
39% 38% Penetration on
market development is private
37% 36% 36%
1,6
internet users
customers segment that reached
34% 33%
1,4
1.130.000 people.
1,2
• Penetration of high speed
1
broadband internet in Ukrainian
1,29
0,8 1,13
households are grew from 2,8% in
0,94
0,86
1Q2007 to 6,4% in 3Q2008.
Private
0,6
0,74
connections
0,63
0,55
0,4
• On average 2.6 user use one high
0,49
0,2 Business
speed access
0,24
0,21
0,20
0,19
0,15 0,18
0,16 connections
0,13
0
4Q08 *
• Keep on rapidly growing Ukraine
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08
Year
can reach German level of high
*Forecast Bitcom for 2008;
speed internet development in 2013
users per connection on avg 2,6 users
Page 4
Source: iKS-Consulting, http://www.iks-consulting.ru/adocs/en/2458336.html; http://www.golem.de/0805/59788.html

5. E-Commerce market in Ukraine is still in its initial phase of developing but
showing stable growth at about 60%
ECOMMERCE MARKET
Revenue from e-Commerce in Ukraine, 2008
mln.$
• E-shopping is still in the
incipient evolving phase. It is
600
considered risky by a half of those
who heard about online shopping
500 60% (50-55%), what is also mirrored by
the fact that the payments are in
400
400 most cases made in cash (~60%).
56%
• Growth rates of Ukrainian e-
60%
300 commerce market is about 60%
250
p.a. It is expected that growth
rates in 2009 will slow down but
200 160
the volume will increase.
100
• Online shoppers are about 30%
100
of current Ukrainian internet users
(~3,5 mln. people)
0
2005 2006 2007 2008
Page 5
Source: www.prostobiz.com.ua; http://www.kontrakty.com.ua/show/rus/article/34/07200810049.html, http://www.limenet.kiev.ua/news/news27.html

6. E-Commerce in Ukraine is a fast and exponentially growing market and has
reached nearly one-sixth of Russian e-Commerce volume in 2008
ECOMMERCE MARKET
E-Commerce revenue, 2008
bln.$
5 31
• In comparison to Germany with its the
3,9
4
current numbers of internet users
(about 55 mln.) Ukrainian e-
3 commerce revenue would only be
2,4
~2$ billion which is 1/15 of current
German e-commerce volume
2
1
0,4
0
Ukraine Russia Poland Germany
* e-Commerce revenue Germany on 11.2008 about 19,3 € billions reported by www.versandhandel.org; exchange rate EUR /USD 1,47 (2008)
Page 6
Source: www.prostobiz.com.ua; http://www.kontrakty.com.ua/show/rus/article/34/07200810049.html, http://www.limenet.kiev.ua/news/news27.html

7. Ukrainian online advertisement is the rapidly growing market and expected to
continue growing at least for 20% in 2009 opposite to other media
ADVERTISEMENT MARKET
Revenue from internet advertising in Ukraine
mln.$
200%
25 Growth, %
150% • Even
150% taking into account current
20
21 economical situation 20% of growth in
2009 is expected opposite to other
100%
15 100% which will scale back (from -10%
media
75%
12 to -30% depends on type)
67%
• Ukrainian advertisers will increase
10
50%share of online advertisement in their
budgets from 1,6% to 3% in 2009
6
5
0%
3
0
Year
2005 2006 2007 2008
Page 7
Source: www.prostobiz.com.ua; http://www.kontrakty.com.ua/show/rus/article/34/07200810049.html, http://kontrakty.ua/content/view/6905/39/

8. Ukrainian online advertisement has a huge opportunities for development, fed
by increasing user base and internet businesses
ADVERTISEMENT MARKET
Revenue from internet advertising CEE and EU countries, 2008
26%
29%
mln.$
4.745
4.389
700
50%
592
600
Main drivers of online advertisement:
• More internet users
500
• User activeness
• Increasing number of internet
400
shops
300 • More and more companies
switching marketing budgeters in
12%
200 favour of internet adverts
132
75%
100
21
0
Ukraine Poland Russia UK Germany
Page 8
Source: www.prostobiz.com.ua; http://www.kontrakty.com.ua/show/rus/article/34/07200810049.html, http://kontrakty.ua/content/view/6905/39/

9. Agenda
• General internet market overview
• Internet business development
Page 9

10. Proposed systematization of Venture deals according to revenue generation
and underlying technology
CLASSIFICATION: MAJOR ONLINE AREAS
Other1)
Subscription Community
Transaction Advertising
•Transaction brokers •The web advertising •Users are charged a •The viability of the •As business
bring buyers and sellers model provides content periodic (daily, monthly or community model is based models in
together and facilitate most often (but always) for annual) fee to subscribe to on user loyalty Internet keep
INTERNET
•Users have a high
transactions. free and services (like a service. developing, here
•Usually a broker •Often sites combine free
email, IM, blogs) mixed we mean all the
investment in both time
content with “premium”
with advertising models, not
charges a fee or and emotion
messages. •There are several ways of fitting to the other
commission for each content, that should be
•Advertising may be the 4 groups
transaction it enables paid for monetizing communities
•Merchants/Shops are •Subscription and
major or sole source of •Revenue can be
MOBILE
revenue.
retailing goods and advertising models are based on sale of
•The advertising model
services. Sales may be frequently combined additional products
made based on list prices works best, when the and services or
or through auction volume of viewer traffic voluntary
•Affiliate model provides is large or highly contributions;
TV
specialized. •Revenue may be
purchase opportunities
wherever people may be tied to contextual or
surfing by offering media advertising
financial incentives to •Subscriptions for
affiliate partners (pay-for- premium services
performance) are also possible
1 Includes Gaming, MVNO etc.
Page 10

11. There are many business models in transaction category types either not
existing at all on the UA market or presented very poorely
TRANSACTION: CATEGORIES Transactions Advertising Subscription Community Others
Categories Examples Comments
Shopping portal amazon.com, tut.ua
• Very few shopping portals offer good
Special shop asos.com, topok.com.ua
quality service, they are relatively small with
Category killer yoox.com, rozetka.ua
product range focused mostly on
Private shopping vente-privee.com, kupiVIP.ru electronic goods, so there is a big potential
for newcomers which will offer good and
Live shopping woot.com, naboki.de
trustful service.
Mass Customization zazzle.com, prostoprint.com
• Private shopping, live shopping, social
Bit vendor apple.com/itunes/,
shopping (for some segments), wigdets,
Social shopping polyvore.com, mydeco.com
SaaS, affiliate networks are
Auction ebay.com, auction.ua
underdeveloped areas
Virtual market place etsy.com, uaprom.net
• Internet shopping enabler segment has
Classifieds hh.ru, job.ukr.net great potential in Ukraine as e-commerce
market is rapidly growing and there are very
Affiliate networks tradedoubler.com, zanox.com
a few e-commerce service
Shop enablers paypal.com, portmone,com.ua
provides, logistic, pickup service, shop
Widgets widgetbox.com, musestorm.com
platform, etc.
SaaS demandware.com
xxx – somewhat developed segments, xxx – poorly presented at the market, start-ups observed Page 11

12. As advertisement market on it early stage of development it is still demand
for innovative approaches and new advertising models
ADVERTISEMENT: CATEGORIES Transactions Advertising Subscription Community Others
Categories Examples Comments
Portal yahoo.com, i.ua, ukr.net
Search google.com, bigmir.net
SEO seo.com, seo-studio.com.ua
• Banner advertisement is the most
News spiegel.de, korrespondent.net
developed, context consist only of about
Social bookmarking delisious.com, sigcess.com.ua 30%
Maps/Geoservice yandex.maps, mapia.com.ua • Despite the fact that most of the categories
presented with big players like google, bigmir,
Comparison/Reviews alatest.com, price.ua
yandex, meta, begun there still demand for
Advertising networks doubleclick.com, begun.ua
innovative approach and new advertising
Mobile marketing admob.com, jump.ua
models, as market is rapidly growing
Incentive marketing payback.de
xxx – somewhat developed segments, xxx – poorly presented at the market, start-ups observed Page 12

13. Subscription area is the most underdeveloped and poorly presented by very
a few models
SUBSCRIPTION: CATEGORIES Transactions Advertising Subscription Community Others
Categories Examples Comments
• Most developed “person to person”
models are dating services, but still
no video services offered
Product/service subscription napster.com, bookclub.ua
no premium accounts, paid reliable
Person to Person friendscout.de, onona.ukr.net
service
Service providers webex.com, sightspeed.com
• Subscription models for services or
products are not developed but in some
segment could be an interesting business
model (bags, TV, accessories, clubs)
xxx – somewhat developed segments, xxx – poorly presented at the market, start-ups observed Page 13

14. Social communities are the most developed area in Uanet, however
community based services are still in demand
COMMUNITY AND OTHERS: CATEGORIES Transactions Advertising Subscription Community Others
Categories Examples Comments
• Most developed are “social networks”,
biggest players:
Social networks facebook.com, connect.ua
Russian networks (vkontakte,
Advice/Recommendations holidaycheck.com, turpravda.com
odnoklassniki)
Blogs livejournal.ru, blox.ua
Ukrainain (connect.ua, profeo)
Media Sharing flickr.com, fileshare.in.ua
International (linkedin, facebook)
Open Source/Content wilipedia.org, openoffice.org
• Open source/content and advice/
recommendation – a few movers only
Gaming bwing.com, sgames.com.ua
• Gaming portals are the most developed
area in Ukrainian internet
xxx – somewhat developed segments, xxx – poorly presented at the market, start-ups observed Page 14

15. Thank you for the
attention!
Page 15

16. eVenture Capital Partners GmbH
Office Hamburg Office San Francisco
Office Kiev
Hohe Bleichen 21 600 Montgomery Street, 43rd Floor
Bassejna 19
D-20354 Hamburg San Francisco, CA 94111
01004 Kiev
Germany USA
Ukraine
T. +49 40 30 99 795 - 90 T. +1 415 - 347 - 3320
T. +38 050 84 771 – 22 F. +49 40 30 99 795 – 40 F. +1 415 - 347 - 3321
M. info_hh@evcpartners.com M. info_hh@evcpartners.com M. info_sfo@evcpartners.com
www.evcpartners.com
This report is solely for the use of client personnel. No part of it may be distributed, quoted, or
reproduced outside the client organization without the prior written approval of eVenture Capital
Partners GmbH . This material was prepared by eVenture Capital Partners GmbH for use
during an oral presentation; it is not a complete record of the discussion