27 slides from VEON Ltd. ORD's earnings presentation, Nov 6, 2013
Slide 1: 3Q 2013 Presentation
3Q 2013 © VimpelCom Ltd 2013 Presentation Amsterdam, November 6, 2013 Jo Lunder - CEO Henk van Dalen – CFO 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 anticipated performance, expected capital expenditures, network d
Slide 3: Stable Underlying 3Q13 Results
Stable Underlying 3Q13 Results Impacted by Regulatory Measures and Market Slowdown Revenues EBITDA EBITDA margin Total mobile subscriber (USD billion) (USD billion) (%) Base* (million) 5.7 2.5 43.5 219 © VimpelCom Ltd 2013 (-1% organic) (-2% organic) (-0.5 p.p.) (+5%) Net cash from Net income** High
Slide 4: Key Developments
Key Developments • VimpelCom switched its ADS listing to NASDAQ and was added to NASDAQ- 100® Index • Interim 2013 dividend of USD 791 million or USD 0.45 per share declared • Awarded 3G license in Bangladesh © VimpelCom Ltd 2013 • Awarded provisional 3G license in Algeria, exceptional approval to i
Slide 5: Business Units Performance
Business Units Performance © VimpelCom Ltd 2013 5
Slide 6: Russia 3Q13: Operational Developments on Track
Russia 3Q13: Operational Developments on Track with Continued Strong Mobile Data Revenue Revenues EBITDA and EBITDA Margin CAPEX* (RUB billion) (RUB billion) (RUB billion) +1% YoY Flat YoY 56.0 74.5 73.6 73.8 75.4 50.7 70.1 32.2 31.5 32.1 12.6 13.0 30.4 29.3 12.1 12.0 12.6 © VimpelCom Ltd 2013 43.2%
Slide 7: Russia: Reaching Par in 3G in Key Regions
Russia: Reaching Par in 3G in Key Regions Further Improvements Expected in 4Q13 Russia Moscow 3x 3G Base 26.6 Stations 24.4 18.7 # 1000s © VimpelCom Ltd 2013 YE 2012 3Q13 YE 2013 YE 2012 3Q13 YE 2013 • 3G network enhanced with more base stations connected via IP: ► 93% of base stations* in Moscow; a
Slide 8: Russia: Accelerated Plan of LTE Network Roll Out
Russia: Accelerated Plan of LTE Network Roll Out Expect to Cover Half of Population by YE15 LTE Network Roll Out Plan • LTE commercially launched in 2 regions © VimpelCom Ltd 2013 • LTE to be commercially launched in Moscow and 3 other regions in 4Q13 • LTE to be launched in 12 cities with populatio
Slide 9: Russia: Extended Roll Out of Owned Mono-brand Stores
Russia: Extended Roll Out of Owned Mono-brand Stores Owned Mono-brand Stores Breakdown of Sales by Channel 1,240 21% 1,157 Monobrand (owned and franchises) 33% 400 3Q12 50% 3Q13 Euroset 58% 21% 17% Other retailers © VimpelCom Ltd 2013 YE 2012 3Q13 YE 2013 • Roll out of owned mono-brand stores aims t
Slide 10: Italy 3Q13: Continued Market Outperformance
Italy 3Q13: Continued Market Outperformance Total Revenues EBITDA and EBITDA Margin CAPEX* (EUR million) (EUR million) (EUR million) -6% YoY -6% YoY Excl. MTR -1% YoY Excl. MTR -4% YoY 1,329 1,369 537 1,229 1,266 1,250 514 507 905 461 475 369 824 370 339 325 © VimpelCom Ltd 2013 341 68 78 56 40 50 1
Slide 11: Africa & Asia 3Q13: Stable EBITDA Organically
Africa & Asia* 3Q13: Stable EBITDA Organically Despite Regulatory and Governmental Measures Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) -4% YoY -2% YoY Organic -1% YoY Organic -1% YoY 904 937 910 400 864 869 372 424 426 441 412 415 © VimpelCom Ltd 2013 46.9% 4
Slide 12: Ukraine 3Q13: Pressure on Results
Ukraine 3Q13: Pressure on Results Whilst Taking Measures to Improve Performance Revenues EBITDA and EBITDA Margin CAPEX* (UAH billion) (UAH billion) (UAH billion) -7% YoY -10% YoY 3.6 3.5 1.8 1.8 3.2 3.4 Thousands 0.3 3.2 1.7 0.3 0.3 1.6 1.5 1.8 0.3 0.3 1.8 © VimpelCom Ltd 2013 51.2% 52.5% 49.6% 49.
Slide 13: CIS 3Q13: Continued Positive Performance
CIS* 3Q13: Continued Positive Performance Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) +7% YoY +5% YoY Organic +9% YoY Organic +6% YoY 513 488 482 234 235 240 246 478 42 220 © VimpelCom Ltd 2013 384 436 38 451 41 38 49.0% 48.8% 49.8% 38 48.1% 48.0% 471 22% 23%
Slide 14: Financial Highlights 3Q 2013
Financial Highlights 3Q 2013 © VimpelCom Ltd 2013 Henk van Dalen CFO 14
Slide 15: Financial Performance 3Q13
Financial Performance 3Q13 GROUP BUSINESS UNITS (USD million) 3Q13 3Q12 YoY Revenue EBITDA Revenues 5,685 5,747 -1% FX and FX and Organic Reported Organic Reported EBITDA 2,474 2,530 -2% others others D&A/Other (1,241) (1,275) -3% Russia +1% -2% -1% 0% -2% -2% EBIT 1,233 1,255 -2% Italy -6% +6% 0% -
Slide 16: Debt, Cash and Ratios
Debt, Cash and Ratios Key Components Consolidated Cash and Net Debt Development Actual 3Q 2013 (USD million) Sep 30, 2013 27,386 (4,764) 5,081 27,566 (USD million) 96 972 (93) (2,505) 471 634 288 22,622 22,485 Cash, Cash Equivalents and deposits 5,081 Total Assets 53,051 © VimpelCom Ltd 2013 Gross D
Slide 17: Well Balanced Debt Composition and Maturity Profile
Well Balanced Debt Composition and Maturity Profile Group Debt Maturity Schedule per 30 September 2013 9.3 Wind GTH 6.0 VimpelCom/OJSC © VimpelCom Ltd 2013 2.6 2.4 1.3 1.5 0.8 0.8 1.0 1.0 0.6 0.2 4Q13* 2014* 2015 2016 2017 2018 2019 2020 2021 2022 2023 >2023 Other information Debt Composition by Cur
Slide 18: Conclusion
Conclusion © VimpelCom Ltd 2013 Jo Lunder CEO 18
Slide 19: Stable Underlying Results
Stable Underlying Results Impacted by Regulatory Measures and Market Slowdown • Revenues impacted by competitive pressure, market slowdown, regulatory and governmental measures • Strong mobile data revenue growth • Russian operational developments on track © VimpelCom Ltd 2013 • Continued outperform
Slide 20: Analyst & Investor Conference 2014, London
Analyst & Investor Conference 2014, London London The Savoy Hotel January 28th - 29th 2014 © VimpelCom Ltd 2013 September 10, 2013: VimpelCom became listed on NASDAQ October 29, 2013: VimpelCom included in NASDAQ 100 Index 20
Slide 21: Q&A
© VimpelCom Ltd 2013 21 Q&A
Slide 22: Further information
Further information Investor Relations Claude Debussylaan 88 1082 MD Amsterdam The Netherlands T: +31 20 79 77 234 © VimpelCom Ltd 2013 E: Investor_Relations@vimpelcom.com Visit our new website Install VimpelCom www.vimpelcom.com iPad App 22
Slide 23: Thank you!
© VimpelCom Ltd 2013 23 Thank you!
Slide 24: Appendices
© VimpelCom Ltd 2013 24 Appendices
Slide 25: FOREX Development
FOREX Development Average rates Closing rates 3Q13 3Q12 YoY 3Q13 FY12 Delta Russian Ruble 32.80 32.00 -2.4% 32.35 30.37 -6.1% Euro 0.75 0.80 6.0% 0.74 0.76 2.5% Algerian Dinar 80.66 80.76 0.1% 81.69 78.94 -3.4% Pakistan Rupee 102.97 94.53 -8.2% 106.06 97.14 -8.4% © VimpelCom Ltd 2013 Bangladeshi Tak
Slide 26: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated EBITDA of VimpelCom* USD mln 3Q13 3Q12 9M13 9M12 Unaudited EBITDA 2,474 2,530 7,247 7,322 Depreciation (726) (721) (2,240) (2,168) Amortization (441) (507) (1,333) (1,561) Impairment loss (45) - (67) - © VimpelCom Ltd 2013 Loss on disposals of non
Slide 27: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated net debt of VimpelCom 3Q12 2Q13 3Q13 USD mln Net debt 22,681 22,622 22,485 Cash and cash equivalents 3,241 4,551 4,890 © VimpelCom Ltd 2013 Long - term and short-term deposits 715 213 191 Gross debt 26,637 27,386 27,566 Interest accrued related to