Vk International Public Js Com · RUS:VKCO
Vk International Public Js Com — VK — Investor Presentation (2021)
41 slides from Vk International Public Js Com's investor presentation, 2021
Slide 1: VKontakte overview
VKontakte overview
Slide 2: VKontakte leadership: CEO, CTO, Deputy Vice President AdTech
CEO VKontakte CTO VKontakte Deputy Vice President, AdTech VK • Marina has 10+ years of IT industry • For over 12 years Alexander has • Boris joined VK in 2017 as a COO experience. She joined VK in 2013 as a been working on video of Youla (Russia's #2 classifieds) product manager and became a product
Slide 3: VKontakte leading social network in Russia and CIS
among social networks in Russia and CIS both in terms of audience reach and total timespent Average Russian Revenue in 2020 DAU in Q3 2021 doubled vs 2017 Mobile time spent per day employees at VKontakte in August 2021 according and offices in 3 cities to Mediascope Source: internal data; Mediascope
Slide 4: Social network audience in Russia: MAU comparison
21% Vkontakte Instagram 60.3 63% 49% 760 OK 40.3 42% 37% 216 TikTok 39.7 42% 38% 540 79% Facebook 35.6 37% 20% 46 Yandex Zen 26.8 28% 17% 57 MAU Russia MAU Rest of the world Source: Mediascope – Russia, cities 0k+, 12+, August 2021 data 4
Slide 5: News feed, communities, messenger, live & video
N E W S F EED COMMUNITIES M E S S EN G ER LIVE & VIDEO
Slide 6: Spontaneous awareness rate of VKontakte
VKontakte 84.5 58.3 58.3 Spontaneous awareness OK 59.2 16.0 16.0 rate of VKontakte 8.6 8.6 Instagram 43.7 Facebook 42.0 4.7 4.7 0.5 0.5 Twitter 16.3 Telegram 10.9 0.40.4 Of respondents named VKontakte as a top-of-mind social network TikTok 6.9 0.70.7 WhatsApp 4.0 0.60.6 Note: to assess awareness rat
Slide 7: VKontakte is the first and the largest superapp in Russia
VKontakte is the first and the largest superapp in Russia 6 Voice assistant - Short video, o 2 Mobility & Communities Stickers Messenger @ v Music Video calls Classifieds Videos More a Gwe soi Sw Classifieds Food delivery Book taxi Order food AliExpress Search Pet care jobs dis Video News feed A 3]
Slide 8: Commitment to doubling 2018 revenue by 2022
Despite COVID-19, we are committed to our previously This year VKontakte is progressing well stated target of doubling 2018 revenue in 2022 29% 35% 21% 8.0 37.0 7.4 6.9 2020 6.2 5.7 5.5 2021 18.3 4.3 2014 2018 2022 Q1 Q2 Q3 Source: internal data Note: Revenue from Video, Livestreaming, VK clips and
Slide 9: Russian digital advertising market and VKontakte share
Russian digital advertising market, 100% of market VKontakte share of Russian digital advertising market, % Russian digital advertising market growth, % VKontakte Advertising Revenue growth, % 69% 61% 41% 46% 32% 20% 10% 40% 19% 21% 22% 22% 4% 15% 4% 5% 6% 7% 7% 7% 8% 2015 2016 2017 2018 2019 2020 2
Slide 10: Higher share of Gen Z and younger audience
14% 40% 46% • VKontakte has a higher than Russian Internet’s share of Gen Z and 42% younger audience (12-24 years-old) 39% • VKontakte also has a larger share of 18% high-spenders (25-44 years-old) Russian Internet VKontakte 12-24 25-44 45+ Source: Mediascope July-August, 2021, 0+, 12k+; internal da
Slide 11: Social and entertainment platform №1 in Russian internet
Social and Social entertainment platform Smart Devices Network №1 №1 in Russian internet AVOD player №1 Content platform №1 in Russian internet Content management and authors engagement User engagement Ecosystem, ID, data and recommendations Technology Leader ML and Content Big Data Calls and delive
Slide 12: AdTech, Communities & Social Commerce, SME, Mini Apps
AdTech Communities & Social Commerce SME Mini Apps Video Livestreaming Clips Calls - Revenue from Livestreaming, VK clips and Calls is accounted within New Initiatives segment, but these services drive time spent and engagement of the entire VKontakte 12
Slide 13: Advertising revenue per user vs Facebook
+19% +11% 52.34 +15% 1.12 16.50 0.98 0.94 0.89 0.88 0.77 10.00 4.30 3.14 1.12 Q1 Q2 Q3 Facebook Facebook Facebook Facebook Facebook VKontakte Worldwide US & Europe Asia-Pacific Rest of Worldwide 2019 2021 Canada the world Source: internal data, company data 13
Slide 14: eCPM growth and ad performance improvements
eCPM, rub +48% • 1.4x more ad clicks from each 1000 impressions of performance ads after recent improvements in predictive models • Revenue skewed towards performance ads • Growing range of high-performing formats for Ecom advertisers: each ruble of ad spend now generates 1.4x more GMV* • Video ads,
Slide 15: SME communities and accounts active each month
B U S I N E S SE S CONTACTS PAID CLICKS SME communities and Leads for business Ad clicks per month accounts are active each communities per month month in VKontakte (messages, followers, orders) Source: internal data 15
Slide 16: Easy promotion tools for SME advertisers
+34% • We keep improving our tools for easy promotion, which we launched in Dec’19 +31% • 40% of SME advertisers used these tools in 3Q’21 • We delivered new targeting options and optimization algorithms • As a result, SME’s ARPPU grew by 55% YoY in 3Q’21 9 months 9 months 9 month 2019 2020 2021 Sou
Slide 17: Potential growth of video advertising revenue
Video views per day Revenue growth (excl. Clips) YoY Q3 (excl. Clips) potential growth of video advertising revenue in 2024 vs 2021 Source: internal data 17
Slide 18: Video player, showcase and Smart TV application
• Updating the video player • Updating the video showcase • Developing a Smart TV application • Currently conducting an experiment • Further developing the technology • Preliminary results show a 25% increase in watch time • Professional content placement in the showcase • Launched the content monet
Slide 19: Social commerce and partnership with AliExpress Russia
Of AliExpress Russia’s overall GMV VKontakte is #1 Russian app in monetization volume Strong partnership with the e-com market leader (JV with AliExpress Russia) Best-in-class infrastructure for Social Commerce platform development (livestreams, Mini Apps, payment system etc.) Business subscriptions
Slide 20: Live streaming
LIVE Number of paying subscribers Communities earned in in September September • Live streaming social apps outpace rise of messengers and photo & video apps in total time spent • Growth of Hours Spent in Top 5 Social Apps by Key Value Proposition, Worldwide Outside of China • New touch point with K
Slide 21: Mini Apps
Number of MiniApps in MAU in September (26% YoY) September (70% YoY) • Mini Apps templates tailored to SME needs • CRM integrated with the community page • Traffic, efficiency and monetization analytics • Automated client search • Dev.vk.com portal with tools and business documentation for developer
Slide 22: Clips monthly views
Clips Monthly views in VK Clips, B 11,3 YoY growth 5,5 Views per day at the end of October 2021 11/20 01/21 03/21 05/21 07/21 09/21 11/21 Source: internal data 22
Slide 23: Clips content and formats
• Video compilations by topics, authors etc. • Balance of UGC and PUGC content • Challenges and unique AR effects • Vertical video films • Special projects for partners integration 23
Slide 24: Calls
Calls VKontakte MAU of additional daily timespent for a 2048+ participants in one video call, cross- video calls1 VKontakte user if using video calls platform Web/Desktop/Android/iOS No time limit for video calls – all is free for users Call privacy • Option to block a user by device_id to prevent l
Slide 25: Open platform: SDK, VK ID and VK Pay
• Advanced promotion technologies within VK • SDK solution to integrate technologies across platforms • Open platform for providing service with built-in mini-apps and seamless e-com experience within the social network • VK ID to simplify authorization process and leads generation across ecosystem
Slide 26: Number of updates total per year
Number of updates total per year 65+ 65 55 47 2019 2020 2021 Annual Q1 Q2 Q3 Q4E Source: internal data 26
Slide 27: Voice tech, computer vision, natural language processing
Voice Tech Computer vision Natural Language Processing Contributes to News Feed, Clips, Video platform and other services 27
Slide 28: Speech recognition technology
• The world's only messenger with speech recognition technology for voice messages • Best Russian language speech recognition technology • Automatic subtitles in video • Smart noise suppression in calls • Machine learning models specifically for mobile devices 28
Slide 29: AR platform and face detection
• AR platform for user and object gesture recognition and virtual backgrounds in Calls • Face detection in photos, video and Live Streams • User profile restoration via face detection with gestures 29
Slide 30: Automatic translation, recommendations and NLP search
• Automatic translations to different languages • Recommendations supported by natural language processing • NLP1 based search 1- Natural Language Processing 30
Slide 31: Content delivery acceleration
• • x2 content delivery acceleration 1- Yekaterinburg, Novosibirsk, Rostov-on-Don, Khabarovsk, Norilsk 31 and others
Slide 32: Scalable group video calls architecture
• Scalable group video calls architecture with 2048 participants (unlimited in the near future) • Video call broadcast technology for unlimited number of viewers and call recording • Cross-platform group video calling technologies for web/desktop/iOS/ Android (including connection via anonymous link
Slide 33: Live streams and video storage architecture
• Scalable architecture for unlimited simultaneous viewers in Live Streams • Low-latency technology for minimum delays in Live Streams • Adaptive streaming with the fast first frame • Scalable storage/processing up to 1,000 petabytes and distribution up to 100 terabytes per second • The fastest tran
Slide 34: Technology shared across VK ecosystem projects
Uploading Calls creation and Auto translation Downloading Live streaming Video Embed Voice-to-text management technologies Removing technologies SF Labs Mini-apps Boosty Pulse SF Labs Mini-apps Marusya Uchi VK Mail AliExpress ОК Donation Alerts AliExpress ОК ОК Tetrika Russia Russia VKontakte Mamba
Slide 35: VK brand familiarity among Russian internet users
of Russian internet users are familiar with the brand VK and use VKontakte every month1 VKontakte is known for its VKontakte is social media2 Source: 1 - Mediascope, June 2021. VKontakte brand health survey. Russia 0+, 14-60 years old. Sample: Internet users 5+ times a week = 35 1405; 2 - Ipsos stud
Slide 36: Product renaming and VK brand endorsement
Some products are being fully renamed, with others endorsed by "VK" Strong brands keep their own branding getting an endorsement from the VK brand mate) “> tona npoext @ ° R CAHOKNaccHHKH @ NOUCK Products in shared ownership also get an endorsement CUTUDPAUB pour Q | Geese npoekt @ | Gceer Some prod
Slide 37: Rebranding creates synergies between brand and sub-brands
Rebranding creates synergies between a single brand and individual sub-brands VK will create value and then the sub-brands will a for sub-brands... provide own strength and val
Slide 38: VK Mail rebranding results
users created a mailbox in VK Mail users linked the mailbox to their VK account • +128k MAU from letters • 2M MAU during push notification period VK Mail interface Source: internal data 38
Slide 39: Rebranding impact on CPA
Before rebranding -47.3% After rebranding -28.9% -10.5% CPA employers CPA Facebook CPA Instagram jobseekers jobseekers Source: internal data 39
Slide 40: For further information please contact
For further information please contact: E-mail: ir@vk.company
Slide 41: Disclaimer
Disclaimer This presentation has been prepared by Mailru Group Limited (the “Company") and comprisesthe written materials for a presentationto syndicate researchanalysts or certain institutional investors. Matters discussed in this presentation may constitute forward-looking statements. Forward-look