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Results of the Capital Group after third quarter of 2012

14.11.2012 Download PDF

MCI earned net 31.8 million PLN. The Group executed three significant new investments in the third quarter.

MCI, the leading PE / VC group in Central Eastern Europe, reported good financial results. After three quarters, the Group recorded 31.8 million PLN consolidated profit with a record exit level in the amount 177 million PLN. During the third quarter of the year, the Group made next three prospective investments. The company shows high liquidity and it is ready for further acquisitions. It may spend nearly 300 million PLN on new technology projects in 2013.

– We have completed three successful quarters. Our strategy focusing on investing in valuable companies from the areas of technology and Internet is bringing desired effects.  Our investment results are improving. The value of assets under management currently stands at 811 million PLN, while net assets rose to 562 million PLN. What is important; the Group recorded nearly 32 million PLN net profit in the first three quarters of 2012 – said Tomasz Czechowicz, CEO of MCI Management SA.

Currently, the Group shows significant liquidity, which will be alloted for new investments and to ensure further dynamic business growth. Significant cash availability will enable to benefit from the investment opportunities arising in connection with the rapid development of the Internet industry, especially the e-commerce market, which in the CEE region is far from saturated. Liquidity is constantly monitored. With another successful emission of investment certificates in the private banking channel and the program to issue convertible bonds with a maximum value of 50 million PLN aproved by the shareholders of MCI, in 2013 the fund may spent 300 million PLN on new technology projects.

We can see new prospective markets. We are starting out with investments outside CEE,  benefiting from the growth potential of such markets as Russia and Germany. In the future, we plan to further diversify our portfolio geographically and we do not rule out investments in Turkey and in other CIS countries – adds Tomasz Czechowicz.

Generating 31.8 million PLN profit by MCI was possible due to the increase in value of certificates of the MCI.TechVentures fund. This growth was generated by recording record profit on the sale of Mall.cz and the increasing value of investments in portfolio companies Invia.cz, Geewa, Apricots (thanks to their excellent operating performance). The good result of the Group was also determined by the positive results of the asset management company.

New Investments

MCI uses the potential of rapidly growing e-commerce markets in the CEE region and other European countries. Only in the third quarter, the fund has executed three major investments in this area. By acquiring a minority stake in KupiVIP.ru, a pioneer and leader of e-commerce in Russia, MCI joined the group of reputable and experienced investors who plan to take advantage of the growth potential of the e-fashion market in Russia. Highly developed logistics systems and excellent system infrastructure backed by the company founder’s experience and the knowledge of the market make KupiVIP.ru well prepared for expansion and rapid development of activities in the area of e-fashion.

MCI’s second investment in the area of e-commerce is 21Diamonds, a thriving German e-store selling jewelry, operating in nearly all of Western and Central Europe, which also has its offices on such markets as India and Brazil. The global jewelry sales market is estimated at 130 billion USD per year, and the penetration of online stores is still relatively small (3%). This is a great opportunity for 21Diamonds. It is estimated that the value of the online jewlery market will reach 10 billion EUR by 2015, growing to 10% share in turover of this the industry. The cash injection of 5 million EUR – within the second round of financing where MCI participates – will enable 21Diamonds to expand its portfolio, build brand awareness and support marketing in order to become a significant player on this market. With its management experienced in e-commerce and strategic consulting, the company has the chance to increase the scale of its operations over a short time and benefit from high margins recorded in this industry.

MCI’s third investment in the third quarter of the year is mojebiuro.pl – a leading provider of software and tools for accounting “in the cloud”. The investment of 5 million PLN comes from the HelixVentures fund co-created with the NCF and is destined to support marketing, development of distribution channels and strengthening the team of experts. So far, Mojebiuro.pl gained the trust of many SME customers, which allowed it to generate good financial results. The company cooperates, among others, with such well-known institutions as Alior Bank, offering bank customers access to applications supprting managing a company as part of the ‘Virtual Office’ service.

Record amount of investment exits – 177 million PLN

During the three quarters, MCI executed the biggest exit in history, by selling its shares in Mall.cz, leader on the e-commerce market in the CEE region. Revenue of MCI from the sale of shares in Mall.cz to Naspers Group is over 38 million EUR. In June 2012, MCI received 90% of this amount; the remaining amount was transferred on 5 November 2012.

In 2012, the majority share package in the company Nexto Sp z o.o. was also sold to Ruch SA Group, and MCI cashed nearly 13 million PLN in dividend paid from 2011 profits by ABC Data SA.

New Vice President of MCI Management SA and Chairman of the Board of ABC Data SA – Norbert Biedrzycki

Norbert Biedrzycki joined the board of MCI Management SA in November and became Chairman of the Board of ABC Data SA. In the years 2010 – 2012, Norbert Biedrzycki held the position of President in Sygnity SA, where he successfully restructured the company and stabilized its performance. Earlier, in the years 2002 – 2010, Norbert Biedrzycki, as an employee of McKinsey & Company, dealt with customer service from the sectors of telecommunications and high-tech. Se began his career at Oracle Poland, where he was responsible for building the business applications division and introducing application products to the market.

14.11.2012 Download PDF