Yandex, Kcell, NIS and M.video recognised as outstanding companies at the tenth annual East Capital Awards, 2013
East Capital, the specialist in emerging and frontier markets, today announces that Yandex, Kcell, NIS and M.video have been named the winners of the 2013 East Capital Awards and will receive their accolades at the annual Awards ceremony held in Stockholm today.
This is the tenth year the East Capital Awards recognise outstanding companies in East Capital’s investment universe. The categories are Best Growth, Best IPO, Discovery of the Year and a new award this year, Best Corporate Governance.
Peter Elam Håkansson, Chairman of East Capital, said: “The East Capital Awards recognise the outstanding achievements of companies in our investment universe. Through our ongoing research, extensive company visits and investment in the region, we identify companies each year that have achieved impressive results and demonstrate exciting potential. We are very pleased to be honouring those companies today.”
The Best Growth Award is presented to Yandex, the largest search engine in Russia with a 62% search market share. The company is a prime example of first-class Russian innovation, entrepreneurship and engineering. From 2010 to 2012, Yandex achieved revenue and EBITDA Compound Annual Growth Rate of 50% and 42% respectively. In 2Q13, the company delivered stellar results with an EBITDA margin of 48.6% and increased the 2013 forecast revenue growth range to 34% - 38%. The Yandex stock price has rallied 74.9% YTD (1 November), making it one of the best-performing companies in Russia in 2013.
Kcell, the largest mobile operator in Kazakhstan, is awarded the Best IPO Award. The company is well known for its strong management team and issuing one of the highest dividends among telecom companies worldwide. Even though the company operates in a very competitive environment, with cuts experienced in the sector both in new mobile subscription as well as contract termination rates, Kcell has managed to keep its subscriber market share of 50% and its profits intact. Since the IPO in December 2012, the stock has yielded a 67% return for shareholders in USD.
NIS, one of the largest vertically integrated oil companies in Southeastern Europe, has been awarded the Discovery of the Year Award. The company has undergone a major transformation following its privatisation in 2008. Modernisation, the introduction of new technologies and improved business processes have helped to turn the company’s huge losses into a highly profitable business with a net income close to USD 500 million in 2012. At the same time, NIS has taken a major step forward in terms of corporate governance. By improving communication and transparency towards minority investors and introducing a clear dividend policy, NIS has set new standards for corporate governance among Serbian companies.
The Best Corporate Governance Award, a new category established this year, is presented to M.video, the largest Russian consumer electronic retail chain by revenue. With corporate governance practices nearing international standards, M.video demonstrates a clear aim to create value for all shareholders. This includes recognised respect for the rights of minority shareholders, a stable dividend policy and a transparent and open approach to communication with external stakeholders. M.video’s management team and professional board of directors, mainly comprising independent directors, have successfully developed M.video’s operations, which currently includes 316 brand name stores in 140 Russian cities.
Notes to editors
The East Capital Awards were established in 2004 to reward the progress of outstanding companies in East Capital’s portfolios. This year's winners will receive their awards at a gala ceremony and dinner at the Grand Hotel (Vinterträdgården) in Stockholm on 7 November 2013.
The award for Best Growth is presented to a company that has demonstrated outstanding growth in the areas of sales, market share and profit margins in recent years. The Best IPO Award is presented to the company that has carried out the most successful floatation in the region. The Discovery of the Year is awarded to a company discovered by our investment team that is expected to demonstrate unique performance. The Best Corporate Governance Award is presented to a company that demonstrates exceptional standards in the area of corporate governance and addresses the opportunities and risks related to environmental and social concerns.
For further information about the winning companies, please visit:
Best Growth Award 2013 – Yandex
Best IPO Award 2013 – Kcell
Discovery of the Year Award 2013 – NIS
Best Corporate Governance Award 2013 – M.Video
Contact information
Vesna Lucca, Head of Communications, East Capital
+46 70 601 92 20
About East Capital
East Capital is a specialist in emerging and frontier markets. The company, founded in 1997, bases its investment strategy on thorough knowledge of the markets, fundamental analysis and frequent company visits by its investment teams. East Capital actively manages EUR 3.6 billion in public equity, private equity and real estate. It is headquartered in Stockholm, with offices in Hong Kong, Kyiv, Luxembourg, Moscow, Oslo, Paris and Tallinn. www.eastcapital.com