Investment opportunity


Summary of proposals

For sale investors are offered 25% of the ordinary shares of PJSC "Svetofor Group" in the amount of 5 583 375 PCs at a price of 72 Euro per 1 share. This is the minimum price of the shares during the IPO on the stock Exchange. the Now investors can purchase shares at that minimum price, until the completion of collecting bids prior to the IPO, which will take place in June 2018. Price range placing the shares in an IPO on the MICEX stock exchange will be from 72-100 RUB per share. Now the minimum amount available to purchase at the pre-sales of 500 shares (in the amount of 36 000 RUB.) . After the IPO (June 2018), the shares of PJSC "Svetofor Group" will be quoted on the MICEX stock exchange. Investors can freely buy and sell at its discretion in any amount.

Average annual forecasted dividend yield of the stock to 2021г. will be 24% per annum, the projected growth potential of the value of the shares to 2021 - 6X.

the the the the the the the the the the the

The Issuer

JSC "Svetofor Group"

The current structure of the share capital

(owner of 100% Dogaev Artem Viktorovich, the founder, CEO)

10% - privileged registered uncertified shares with a nominal value of 1 ruble – 2481500 PCs.

90% of ordinary registered uncertified shares with a nominal value of 1 ruble - 22333500 PCs.

The planned share capital structure and planned free-float after listing

10 % - preferred shares, 65% of the ordinary shares (Dogaev Artem Viktorovich)

25 percent of ordinary shares plan to free-float

Exchange

The Market of Innovations and investments of the Moscow stock Exchange

Third level List

The share placement from the UK

25% of common stock / 5 583 375 PCs.

Volume

402 - 558 million.

The period of placement

June 2018

Range of stock prices when placing an IPO, RUB per share

72 - 100

Capitalization, mln.

1600 – 2230

The appropriate range of multiples at a price of 72 rubles per share

EV / Revenue 2018П

EV / EBITDA 2018П

2.4 x 3.45 x

8.0 x 11.27 x


Valuation of the company to investors (72 RUB per share) based on financial models, investment programs, and the valuation multiple EV/EBITDA=8.0, EV/Revenue=2,4

Year 2015 2016 2017 June 2018-IPO 2018 2019 2020 2021
EBITDA (million RUB) 68,177548 83,748348 105,2304699 197,5402744 404,7772571 633,7437422 891,7148173
The distribution of profit (history and forecast) all appr. on developed all appr. on developed all appr. on developed 25% appr. on div. 50% appr. on div. 75% appr. on div. 100% appr. on div.
EBITDA Margin (history and forecast) % 32,7084763 37,45018379 37,09664928 30,58367123 36,84913637 37,19909783 36,764508
Forecast stock prices/rubles PCs 33,5797658 41,24891544 51,82959254 72 97,29531709 199,3665935 312,1403903 439,1999361
Forecast earnings per share/RUB. PCs 2,211257207 9,062117885 28,37639912 39,92726692
Average annual forecast dyfed. yield RUB/share (tenure 4 years) from the initial public offering price 19,89426028
Average annual forecast % dividend yield per share/offering price IPO (tenure 4 years) 27,63091706
The forecast growth in the value of shares from financial results (tenure 4 years)/ % 609,9999113


The company attracts investment in the following growth points: (1) M&A transactions, (2) aggressive connect training centers to the platform and the organic opening of training centers. For the implementation of scalable development strategy will require up to 500 million

directions of development Short description investments Required Potential revenue growth, million
01 M&A Transactions
Company Description Training centers Revenue (millions )
target No. 1 Leader of the regional market of one million, has 50+ locations, provides services for online learning. 58 268
target No. 2 The Company is a leader in the training of drivers in the Moscow region with its own infrastructure to service the students 20+ 109
Cost (millions )
133repayment of 51%
104repayment of 51%
Potential revenue growth, million
≈+ 377,0 million R
02 Connecting schools to the online platform and organic growth
Script Description Training centers Revenue (millions )
B2B sales Selling access to the platform other training centres 550 84
Organic growth Open private training centers 51 209
Cost (millions)
51
64
Potential revenue growth, million
≈+ 293,0 million R
03 product R&D product Development 150
Summary
equity (million )
Required foreign investments (million )
+133
-300
+670,0 million RTotal growth potential
THE FINAL GROWTH POTENTIAL
for 12-18 months from the moment of attracting investments
≈+ 1098,0 million Rprojected revenues in 2019
≈+ 1098,0 million R projected revenues in 2019


forward-looking indicators.

the profit and loss

2017

2018

2019

2020

2021

Revenue

(million RUB)

284

646

1 098

1 704

2 425

Charges

(million RUB)

178

448

694

1 070

1 534

EBITDA

(million RUB)

105

198

405

634

892

EBITDA Profitability

(%)

37%

31%

37%

37%

37%

depreciation

(million RUB)

10

25

40

70

111

EBIT

(million RUB)

95

173

364

563

781

NNP

0%

0

0

0

0

0

Net profit

(million RUB)

95

173

364

563

781

statement of cash flows

2017

2018

2019

2020

2021

Net profit

(million RUB)

95

173

364

563

781

depreciation

(million RUB)

10

25

40

70

111

Changes in working capital

(million RUB)

12

41

37

50

59

Capital expenditures

(million RUB)

50

75

78

150

200

M&A

(million RUB)

0

183

285

0

0

Investing

(million RUB)

0

180

Net cash flow

(million RUB)

44

79

4

434

632

Cash, beginning of period

(million RUB)

0

44

123

127

561

Cash at end of period

(million RUB)

44

123

127

561

1 193