27 slides from VEON Ltd. ORD's earnings presentation, May 15, 2012
Slide 1: 1Q 2012 Presentation
1Q 2012 © VimpelCom Ltd 2012 Presentation Amsterdam, May 15th, 2012 Jo Lunder CEO 1
Slide 2: Disclaimer
Disclaimer This presentation contains "forward-looking statements", as the phrase is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to the Company's financial performance objectives, development plans and anticipat
Slide 3: Key results 1Q12
Key results 1Q12 Revenues* EBITDA* EBITDA margin Total mobile subscriber (USD billion) (USD billion) (%) Base* (million) 5.6 2.3 41.1 209 © VimpelCom Ltd 2012 (+6% organic) (+5% organic) (+12%) Net income Net cash from operating Business unit highlights (USD million) activities (USD billion) • Russi
Slide 4: Strategic Update and Main Events
Strategic Update and Main Events • Algeria ► OTH submitted a formal Notice of Arbitration against the government of the People’s Democratic Republic of Algeria ► VimpelCom still open to finding an amicable resolution with the Algerian © VimpelCom Ltd 2012 government • Significant part of 2012 debt m
Slide 5: Business Units Performance
Business Units Performance © VimpelCom Ltd 2012 5
Slide 6: Russia Performance 1Q12
Russia Performance 1Q12 Revenues EBITDA and EBITDA Margin CAPEX* (RUB billion) (RUB billion) (RUB billion) +11% YoY +9% YoY 59.8 56.5 22% 21% 65.2 69.6 71.0 67.0 27.1 27.9 27.7 60.3 25.4 26.4 10.8 11.5 12.0 11.4 9% 10.3 42.1% 41.5% 41.3% © VimpelCom Ltd 2012 40.0% 37.1% 50.0 54.4 58.1 59.0 55.6 6.1
Slide 7: Italy Performance 1Q12
Italy Performance 1Q12 Revenues EBITDA and EBITDA Margin CAPEX* (EUR million) (EUR million) (EUR billion) Total Revenues flat YoY -2% YoY Revenue excluding Mobile incoming +3% YoY Excluding MTR cut +2.4% YoY 565 1,351 1,399 1,397 1,424 1,346 496 526 533 487 1.0 1.0 369 370 371 387 363 18% 18% 155 17
Slide 8: Africa & Asia Performance 1Q12
Africa & Asia* Performance 1Q12 Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) +4% YoY +5% YoY 434 424 593 585 404 407 891 949 957 922 927 321 16% 16% 45.3% 42.9% 45.4% 45.7% 7% © VimpelCom Ltd 2012 34.8% 69 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 1Q 11 2Q 11 3Q 11 4Q 11 1
Slide 9: Ukraine Performance 1Q12
Ukraine Performance 1Q12 Revenues EBITDA and EBITDA Margin CAPEX* (UAH billion) (UAH billion) (UAH billion) +3% YoY -2% YoY 1.8 1.9 2.3 3.5 1.7 2.3 3.3 3.3 1.6 1.6 3.0 3.1 17% 17% 12% © VimpelCom Ltd 2012 54.0% 54.8% 53.7% 50.3% 51.1% 0.4 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 F
Slide 10: CIS Performance 1Q12
CIS* Performance 1Q12 Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) +8% YoY +1% YoY 198 626 614 389 430 419 175 171 351 379 159 161 39% 38% 44 39 41 36 41 45.3% 45.0% 46.0% 16% 42.5% © VimpelCom Ltd 2012 40.8% 348 386 380 342 310 61 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12
Slide 11: Financial Highlights
Financial Highlights © VimpelCom Ltd 2012 Henk van Dalen CFO 11
Slide 12: 1Q12 Pro Forma Financial Performance
1Q12 Pro Forma Financial Performance GROUP BUSINESS UNITS (USD million) 1Q12 1Q11 YoY Revenue EBITDA Revenues 5,619 5,481 3% FX and FX and Organic Reported Organic Reported EBITDA 2,311 2,285 1% others others Depreciation/ Russia 11% -3% 8% 9% -3% 6% Amortization/ -1,296 -1,382 -6% Other Europe & NA
Slide 13: 1Q12 Actual Financial Highlights
1Q12 Actual Financial Highlights Consolidated financial highlights (Actual) (USD million) Actual 1Q12 1Q11 YoY Total operating revenues 5,619 2,740 105% EBITDA 2,311 1,203 92% EBITDA margin 41.1% 43.9% EBIT 1,015 627 62% © VimpelCom Ltd 2012 Financial income and expenses (443) (126) 252% FX and Othe
Slide 14: Debt, Cash and Ratios
Debt, Cash and Ratios Key Components Consolidated Cash and Net Debt Development Actual 1Q 2012 (USD million) March 31, (USD million) 2012 Cash, Cash Equivalents and deposits 4,252 4,252 28,591 26,876 (2,503) Total Assets 56,121 24,373 (1,607) 872 670 31 24,339 Gross Debt 28,591 © VimpelCom Ltd 2012
Slide 15: Debt Composition and Maturity Profile
Debt Composition and Maturity Profile Group Debt Maturity Schedule per May 2012 VimpelCom / OJSC 9.2 WIND OTH 5.6 © VimpelCom Ltd 2012 3.3 2.1 2.4 1.3 1.6 1.0 1.5 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q2-Q4 Other information Debt Composition by Currency Actual During 1Q 12 OJS
Slide 16: Simplified legal / financing structure - per March 2012
Simplified legal / financing structure - per 31 March 2012 VimpelCom Group VimpelCom Ltd. VIP USD 2.2 bn OJSC Group USD 10.6 bn VimpelCom Wind Group USD 14.7 bn Amsterdam B.V. OTH Group USD 1.1 bn Gross debt USD 28.6 bn VimpelCom Holdings VimpelCom Amsterdam WIND Telecom B.V. Finance B.V. S.p.A. © V
Slide 17: Conclusion
Conclusion © VimpelCom Ltd 2012 Jo Lunder CEO 17
Slide 18: Conclusion
Conclusion • Strong performance across all our operations ► Turnaround successfully evolving in Russia ► Continued profitable growth in Africa & Asia, with impressive performance in Pakistan © VimpelCom Ltd 2012 ► Operational excellence initiatives in Ukraine pointing to margin rebound ► Italy and C
Slide 19: Q&A
© VimpelCom Ltd 2012 19 Q&A
Slide 20: Thank you!
© VimpelCom Ltd 2012 20 Thank you!
Slide 21: For further information please contact Investor Relations
For further information please contact Investor Relations Claude Debussylaan 88 1082 MD Amsterdam The Netherlands T: +31 20 797 7200 © VimpelCom Ltd 2012 E: Investor_Relations@vimpelcom.com www.vimpelcom.com 21
Slide 22: Appendices
© VimpelCom Ltd 2012 22 Appendices
Slide 23: BU Russia: Operating Highlights
BU Russia: Operating Highlights Mobile subscribers ARPU and MOU (million) (RUR) (min) +5% YoY +2% YoY ARPU +17% YoY MOU 57.2 327 334 327 314 56.8 308 55.3 55.6 259 254 251 © VimpelCom Ltd 2012 53.0 244 218 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 ARPU MOU Broadband subscribers
Slide 24: BU Europe & NA: Operating Highlights Italy
BU Europe & NA: Operating Highlights Italy Mobile subscribers ARPU and MOU (million) (EUR) (min) +4% YoY ARPU -5% YoY MOU +9% YoY 21.1 15.4 16.0 15.7 15.2 21.0 14.7 20.8 20.6 205 205 187 198 196 © VimpelCom Ltd 2012 20.3 1 Q 11 2Q 11 3Q 11 4Q 11 1Q 12 1 Q 11 2Q 11 3Q 11 4Q 11 1Q 12 ARPU MOU Broa
Slide 25: FOREX Development
FOREX Development Average rates Closing rates Currency 1Q12 1Q11 YoY 1Q12 FY 11 Delta RUR 30.03 29.27 -2.5% 29.33 32.20 9.8% EUR 0.76 0.71 -6.3% 0.75 0.77 3.1% DZD 75.13 73.01 -2.8% 73.91 75.33 1.9% © VimpelCom Ltd 2012 PKR 90.61 85.50 -5.6% 90.65 89.95 -0.8% BDT 82.78 71.39 -13.8% 81.79 81.83 0.1%
Slide 26: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated EBITDA of VimpelCom Pro forma Actual USD million 1Q12 1Q11 1Q12 1Q11 Unaudited pro forma EBITDA 2,311 2,285 2,311 1,203 Depreciation (727) (730) (727) (423) Amortization (532) (665) (532) (143) © VimpelCom Ltd 2012 Impairment (loss) / gain 6 23 6
Slide 27: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated net debt of VimpelCom USD millions 1Q 12 4Q 11 Net debt 24,339 24,373 Cash and cash equivalents 4,033 2,325 Long - term and short-term deposits 219 178 © VimpelCom Ltd 2012 Gross debt 28,591 26,876 Interest accrued related to financial liabilities