VEON Ltd. · NASDAQ:VEON
VEON — VimpelCom — Investor Day (February 2017)
103 slides from VEON's investor day presentation, Feb 27, 2017
Slide 1: FY 2016 Analyst and Investor Day
Barcelona 27 February 2017 FY 2016 Analyst and investor day ©VimpelCom Ltd
Slide 2: Forward-looking statements
This presentation contains “forward-looking statements,” as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by words such as “may,” “might,
Slide 3: Agenda
BART MORSELT - HEAD OF IR Opening JEAN-YVES CHARLIER - CEO Reinventing VimpelCom ANDREW DAVIES - CFO 2016 results and corporate finance initiatives CHRISTOPHER SCHLAEFFER – CDO VEON YOGESH MALIK - CTO Technology leadership BREAK – 20 MIN AGENDA ALEXANDER MATUSCHKA - CPO Performance transformation KJ
Slide 4: Reinventing VimpelCom
Jean-Yves Charlier Chief Executive Officer Reinventing VimpelCom
Slide 5: Strategy to transform VimpelCom
18 months ago, we announced a strategy to transform VimpelCom… Structural Improvements Performance Transformation Portfolio and Asset Optimization Digital Leadership New Revenue Streams World Class Operations $ $ $ $
Slide 6: Transformation progress
Transformation progress 2 WORLD CLASS OPERATIONS New global vision & values New leadership team and talent Strengthened Supervisory Board New global operating model Stronger compliance/control environment 1 STRUCTURAL IMPROVEMENTS Algeria transaction Uzbekistan settlement GTH bond & share buy-back S
Slide 7: Transformation progress
Transformation progress 5 NEW REVENUE STREAMS Returned to organic growth 26% organic growth in mobile data revenue in FY 2016 Focus on FMC & B2B 4 Portfolio optimization In-market consolidation: Italy and Pakistan transactions Disposal of non-strategic assets Network sharing: Russia, Kazakhstan Towe
Slide 8: Robust results delivered in 2016
These initiatives have allowed us to deliver robust results in 2016 ALL NUMBERS EXCLUDE WARID CONTRIBUTION 1 Organic change is non-IFRS financial measure that excludes the effect of foreign currency translation and Warid acquisition 2 The Company changed the accounting treatment for certain elements
Slide 9: Currency headwinds are receding
At the same time, the currency headwinds are receding… VimpelCom currency weightings calculated from the sum of the individual countries’ relative contribution to total countries revenue (= total Group revenue - eliminations - HQ)
Slide 10: Delivered on 2016 targets
AND THE COMPANY DELIVERED ON 2016 TARGETS FY 20151 Service revenue EBITDA margin underlying OCF3 margin CAPEX / Revenue Leverage 9,313 40.9% 22.3% 18.5% 1.4x Flat to low single digit Flat to +1 p.p. YoY Flat to +2 p.p. 17-18% ~2.0x 8,402 +0.5% YoY organically 40.6% +0.2 p.p. YoY organically 23.3% +1
Slide 11: Three major financial announcements
DIVIDEND POLICY Announcement of a meaningful dividend policy US 23 cents per share for FY 2016 US 3.5 cents already paid US 19.5 cents final STRONGER OUTLOOK PROJECTED Returned to financial health with strong 2016 progress Stronger equity free cash flow expected1, targeting USD 700-800 million in 20
Slide 12: Growth lagging behind other digital sectors
GROWTH HAS BEEN LAGGING BEHIND OTHER DIGITAL SECTORS NO MEANINGFUL ENGAGEMENT WITH CUSTOMERS Transformation progress YESTERDAY TODAY TELECOMS IS FACING A GROWTH CHALLENGE IDATE digiworld yearbook 2016, Citi research – 2013-2015 revenue CAGR (Euro constant currency)
Slide 13: Digital strategy: from telco to tech
digital strategy: From telco to tech NEW INTERNET PLATFORM Zero rating as a fundamental component of the service , allowing users to stay connected for free, no matter what their data plan Users communicate by voice, text, picture, and video through beautifully designed interface Highly intuitive pa
Slide 14: VimpelCom is now VEON
VIMPELCOM IS NOW... VEON
Slide 15: VEON video
VIDEO VEON i<
Slide 16: From telco to tech
From telco to tech Grow equity free cash flow to more than USD 1 billion for 2018 to support a sustainable dividend policy REVITALIZING OUR BUSINESS TO ACHIEVE WORLD CLASS STANDARDS Aggressively grow B2B + FMC Strengthening B2C commercial model and performance Moving to an asset light model Drastica
Slide 17: 2016 Results and corporate finance initiatives
Andrew Davies Chief Financial Officer 2016 RESULTS & corporate finance initiatives
Slide 18: FY2016 targets achieved
FY2016 TARGETS ACHIEVED FY 20151 Service revenue Underlying EBITDA margin OCF3 margin CAPEX/revenue Leverage 9,313 40.9% 22.3% 18.5% 1.4x Flat to low single digit Flat to +1 p.p. YoY Flat to +2 p.p. 17-18% ~2.0x 8,402 +0.5% YoY organically 40.6% +0.2 p.p. YoY organically 23.3% +1 p.p. YoY 17.4% 2.0x
Slide 19: FY 2016 service revenue evolution
FY 2016 service revenue evolution FOREX HEADWINDS PARTIALLY MITIGATED BY CONTRIBUTION FROM WARID 1 Other also includes intercompany eliminations 2 Other consists of operations in Kazakhstan, Kyrgyzstan, Georgia, Armenia, Tajikistan and intercompany eliminations -8.2% 1 PAK 125 BAN 14 ALG (134) +0.7
Slide 20: FY 2016 EBITDA evolution
FY 2016 EBITDA evolution EBITDA IMPACTED BY FOREX HEADWINDS ... 1 Exceptional items in FY 2015 consist of provisions for investigations (related to SEC/DOJ/OM) and other legal costs of USD 927 million, as well as transformation costs of USD 135 million 2 Exceptional items in FY 2016 consist of USD 3
Slide 21: FY 2016 income statement
FY 2016 income statement FY16 FY15 YoY Organic YoY Revenue 8,885 9,606 (7.5%) 1.0% Service revenue 8,553 9,313 (8.2%) 0.5% EBITDA 3,232 2,875 12.4% 26.6% Depreciation & amortization (1,936) (2,067) (6.3%) Impairments and other (212) (283) (25%) EBIT 1,084 524 n.m. Net financial expenses and other (6
Slide 22: FY 2016 net debt evolution
FY 2016 net DEBT EVOLUTION Net debt/ EBITDA2 2.0x 1.4x 1 1.5x 1 Exceptional items in FY 2016 cash flow consists of USD 795 million related with Uzbekistan settlement, USD 10 million related with legal costs and performance transformation and other costs of USD 287 million 2 Underlying EBITDA, which
Slide 23: 2016 structural improvements
2016 structural improvements Closing of Italy transaction GTH refinancing Improving cash upstream Optimization of local debt structures Global capital allocation model Asset light strategy Create flexibility for re-investing
Slide 24: Corporate finance transactions
CORPORATE FINANCE TRANSACTIONS JAN 2015 RUB bond issue in Russia Tender offer on USD bonds Algeria transaction Italy JV announcement and subsequent deconsolidation of WIND New Sberbank credit facility 3rd phase of Italy refinancing RUB bonds put options exercised CDB - RMB facility RUB bond secondar
Slide 25: Group gross debt
Group gross debt (currency breakdown and evolution) 2014 (USD 26.4 billion) Capital structure improved Net leverage ratio1: 2.5x USD RUB Other EUR Gross debt and leverage ratio reduced, annual interest savings ~USD 150 million2 2016 average interest rate: 7.3% 1 Net leverage ratio: Net debt/EBITDA 2
Slide 26: Equity free cash flow improvement in 2016
EQUITY FREE CASH FLOW IMPROVEMENT IN 2016 FY 2015 40 (280) 828 588 FY 2016 Net cash from operating activities2 Net cash used in investing activities2 …driven by robust capital efficiency improvements 1 Underlying equity free cash flow, defined as free cash flow from operating activities less free ca
Slide 27: Future priorities and ambitions
Future priorities and ambitions Further improve: Dual listing in Amsterdam Debt structure Tax efficiency Portfolio and asset light strategy Equity free cash flow + … to structurally support dividends and broaden the investor base
Slide 28: Dual listing in Amsterdam
dual listing in Amsterdam Increased free float allows us to launch a second listing1 on Euronext Amsterdam, broadening the investor base Listing will be launched in Q2 2017 with the ticker “VEON” Likely inclusion in new stock indices European stock coverage expected to increase Amsterdam listing wil
Slide 29: Equity free cash flow improvement
EQUITY FREE CASH FlOW IMPROVEMENT USD MILLION UNLESS OTHERWISE STATED FY 2016 FY 2017E >1,000 FY 2018E …coupled with further improvements to cash upstreaming 1 Underlying equity free cash flow is defined as free cash flow from operating activities less free cash flow used in investing activities; ex
Slide 30: FY 2017 targets
FY 2017 TARGETS FY 2016 actual (incl. Warid for 6 months) Total revenue Underlying EBITDA margin Underlying equity free cash flow2 1 FY 2017 targets based on pro-forma results for 2016, including 12 months of Warid contribution; organic targets for revenue and underlying EBITDA margin are at constan
Slide 31: New dividend policy
For the financial year ended 31 December 2016, the Company intends to pay a dividend in the aggregate amount of USD 23 cents per share comprised of USD 3.5 cents per share paid as an interim dividend in December 2016 and USD 19.5 cents per share as a final dividend to be paid in April 20171 New divi
Slide 32: Christopher Schlaeffer, Chief Digital Officer
Christopher Schlaeffer Chief Digital Officer
Slide 33: Industry evolution
INDUSTRY EVOLUTION 1995 2000 2005 2010 2015 2G 3G 4G
Slide 34: Moving beyond the app economy
MOVING BEYOND THE APP ECONOMY 2007 A revolutionary phone Now Emerging ecosystems 2008 A dominating operating system
Slide 35: A new internet platform
PERSONAL FREE SECURE OPEN CONTEXTUAL A NEW INTERNET PLATFORM
Slide 36: VEON
VEON A single account – and you stay in control Totally free Messaging – with chat and voice calling Everything the internet has to offer - from a given context News, music and video entertainment – personalized for you Beautifully delivered – in the “VEON Stream” All you need in one place
Slide 37: Free, even when out of credit
FREE. EVEN WHEN YOU ARE OUT OF CREDIT.
Slide 38: Secure, putting the user in control
SECURE. PUTTING THE USER IN CONTROL.
Slide 39: Mastercard global partnership
@ mastercard GLOBAL PARTNERSHIP
Slide 40: Contextual
CONTEXTUAL. WHAT YOU NEED. WHEN YOU NEED IT.
Slide 41: Global partnership for Studio+
GLOBAL PARTNERSHIP FOR STUDIO+
Slide 42: Deezer global partnership
=-G=° DEEZER GLOBAL PARTNERSHIP
Slide 43: Open, everything the internet has to offer
OPEN. EVERYTHING THE INTERNET HAS TO OFFER.
Slide 44: Digital economics
ECONOMICS DIGITAL GROSS ADDS SUBSCRIBER ACQUISITION COST DIGITAL TOP-UPS CUSTOMER CARE CALLS CHURN SUBSCRIBER MARKET SHARE VALUE SHARING WITH PARTNERS MONTHLY ACTIVE USERS (MAU) CUSTOMER ENGAGEMENT NEW REVENUE MODEL IMPACT ON CORE BUSINESS
Slide 45: Italy downloads
ITALY > 1 million Downloads
Slide 46: VEON: be truly free
VEON BE TRULY FREE
Slide 47: Technology leadership
Yogesh Malik Chief Technology Officer TECHNOLOGY LEADERSHIP
Slide 48: Myth: telcos cannot compete with OTTs
MYTH: TELCOS CANNOT COMPETE WITH OTTs Tangible features thanks to deep integration with core network (Voip Override, SMS in/out, etc.) Real-time data continuously enriched fueling relevant customer offerings & marketplace 56
Slide 49: Customer data fields
DEVICE ACCOUNT USER DEMOGRAPHIC SERVICE USAGE CUSTOMER SERVICE BILLING ACCOUNT MGMT MOBILE FINANCIAL SERVICES Acquisition source data Market name Market code Region ARPU ARPU cluster Internal / External segmentation Service status Service description Bundle details Additional features Channel Promo
Slide 50: Myth: telcos cannot compete with OTTs
MYTH: TELCOS CANNOT COMPETE WITH OTTs Strong presence and distribution networks Tangible features thanks to deep integration with core network (Voip Override, SMS in/out, etc.) Real-time data continuously enriched fueling relevant customer offerings & marketplace
Slide 51: Telco to tech challenges and vision
TELCO TO TECH challenges Siloed, non data-centric architecture No software expertise System integrator dependent Our Vision Micro-services based architecture Developing software skills Full control over front end using open source
Slide 52: Our vision
Our Vision Micro-services based architecture Developing software skills Full control over front end using open source
Slide 53: Building future software-defined products
BUILDING FUTURE SOFTWARE-DEFINED PRODUCTS New business enablement APIs Micro- services Data management IT Stack Network assets
Slide 54: Uplifting our networks at fast pace
UPLIFTING OUR NETWORKS AT FAST PACE TRADITIONAL TELCO NETWORKS FUTURE TELCO NETWORKS Hardware and software locked together Very hard to scale or pool Sharing is still nascent Software defined, intelligent Dynamic scaling and pooling Modernizations and sharing
Slide 55: Milestones achieved at record pace
Countries where 4G/LTE was launched in 2016 MILESTONES ACHIEVED – AT RECORD PACE Network Sharing and Consolidation 4G/LTE population coverage in our footprint Million people, change in % 2015 2016 +72% 63
Slide 56: Ukraine example
Ukraine example Number of sites swapped / modernized in 2016 and 2017 MODERNIZING MAJORITY OF SITES BY THE end OF 2017 Full country swap in record time with 4G/LTE readiness Significant leadership to competitors in NPS 60% of urban sites have fibre connectivity 2017 ~57,000 ~
Slide 57: Virtualizing our networks
VIRTUALIZING OUR NETWORKS ALL ACROSS Implemented vEPC covering five Eurasian countries Adopting a comprehensive network function virtualization strategy Introducing virtual HLR in Bangladesh
Slide 58: Capex to revenue ratio
CAPEX TO REVENUE RATIO, (%) Our experience: MUCH MORE CAN BE DONE WITH LESS RESOURCES Modernization at pace Group-wide prioritization Focus on quality of service Medium-term goal ~15
Slide 59: Keeping world-class network quality
Keeping world-class network quality Total volume of traffic, 3G and 4G/LTE Petabytes 4G/LTE share of total data traffic % +57% #1 in six countries for network throughput
Slide 60: Building future software-defined products
BUILDING FUTURE SOFTWARE-DEFINED PRODUCTS New business enablement APIs Micro- services Data management IT Stack Network assets
Slide 61: Bringing it all together
BRINGING IT ALL TOGETHER FOR A UNIQUE USER EXPERIENCE Marketplaces OpCo Campaign Manager Partner Campaign Manager VEON User Scheduling Campaign/API Management API Gateway Microservices Platform MS API End Points Payment Gateway PartnerPortal Decision Engine Campaign Management Offer Decisioning User
Slide 62: 2016: a vision became reality
2016: A vision became reality Digital Stack overhaul started Software Development center opened Data Management Platform launched Mobile Financial Services platform launched VEON launched
Slide 63: Break
break
Slide 64: Performance transformation
Alexander Matuschka Chief Performance Officer PERFORMANCE TRANSFORMATION
Slide 65: Performance transformation
PERFORMANCE TRANSFORMATION RESUME MEANINGFUL DIVIDEND POLICY RESTRUCTURE RE-INVEST
Slide 66: Improving cash flow
improving cash flow New 2018 target2 Achieved in 2016 Original 2018 target1 >75% achieved OPEX Optimize legacy cost base CAPEX Scale volumes through standardization across our footprint WORKING CAPITAL Inventory management Payment days 1. Original medium term cash flow target 2. New target based on
Slide 67: Global operating model
GLOBAL operating MODEL CONSOLIDATION STANDARDIZATION DIGITIZATION MANAGED SERVICES SHARED SERVICE CENTERS HUBS CONTACT CENTERS
Slide 68: Design principles
designing principles STRINGENT GOVERNANCE ONE PROJECT MANAGEMENT CAPABILITIES INTERNALIZED LINK TO PROFIT & LOSS 80 initiatives 400 ACTION OWNERS USD 402 million OPEX SAVINGS in 2016 USD 503 million Run RATE SAVINGS 76
Slide 69: Cost optimization: procured volume
USD 3.9 billion 2016 TOTAL CAPEX AND STRUCTURAL OPEX COST OPTIMIZATION: procured volume Structural opex is total opex less service costs, costs of equipment and accessories, commercial costs and litigation costs Total capex excludes licenses Real estate costs include only costs for administrative si
Slide 70: Vendor day methodology
Vendor day methodology: GUIDING PRINCIPLES 48h REAL TIME AUCTIONS & NEGOTIATIONS DECISION MAKERS PRESENT PRESENT STRATEGY AND VALUES SIGN CONTRACTS & AWARD VENDORS REAL TIME AUCTIONS & NEGOTIATIONS
Slide 71: Global vendor days reducing capex
GLOBAL VENDOR DAYS CONSISTENTLY REDUCING CAPEX CAPEX / REVENUE (%) 18.5% ~15% Medium-term goal 21.0% 17.4% PROCUREMENT SPEND 70% 2016 2015 2015 2016 TOTAL VOLUME OF TRAFFIC, 3G AND 4G/LTE Petabytes SHARE OF 4G/LTE AMONG TOTAL DATA TRAFFIC (%) DE-RISK SCALE VOLUME STANDARDIZE AND ELIMINATE VARIANCES
Slide 72: Procurement spend: be local to be global
30% local vendor days Bangladesh -52% Pakistan -24% Algeria -33% Russia -19% Armenia -9% Kazakhstan -8% Ukraine -19% Georgia 9 Mar 2017 Kyrgyzstan 14 Mar 2017 Uzbekistan 15 Mar 2017 PROCUREMENT SPEND BE LOCAL TO BE GLOBAL SHARE GROUP VISION AND VALUES FOCUS ON OPEX OPTIMIZATION PARTNER WITH LOCAL VE
Slide 73: Risk shared with vendors
Risk shared with vendors Fully mitigated improvement of 65% NON mitigated REDUCTION of 78% 2.3 0.6 0.2 1.2 Addressable Spend Fully mitigated in 2016 Shared risk in 2016 Not mitigated in 2016 1,600 contracts representing 80% of total procured spend De-Risking FOREX MITIGATION AMOUNT OF TOTAL SPEND US
Slide 74: Cost optimization: personnel costs
COST OPTIMIZATION: PERSONNEL COSTS Structural opex is total opex less service costs, costs of equipment and accessories, commercial costs and litigation costs Total capex excludes licenses Real estate costs include only costs for administrative sites USD 3.9 billion Personnel costs 2016 TOTAL CAPEX
Slide 75: Structural shift from telco to tech: headcount
Structural shift from TelCo to Tech: headcount HEADCOUNT Jan 2015 Re-structure Dec 2015 Re-structure Re-investment Dec 2016 -33% -28% LINE MANAGERS ORG. STRUCTURE LAYERS -36% Headcount includes both employees and temporary external labor; in the Form 20-F figures refer only to employees.
Slide 76: Headcount administrative vs non-administrative
2016 74% 2018 81% HEADCOUNT ADMINISTRATIVE vs NON-ADMINISTRATIVE (in %) HEADCOUNT Jan 2015 Re-structure Dec 2015 Re-structure Re-investment Dec 2016 -33% -28% Structural shift from TelCo to Tech: headcount Headcount includes both employees and temporary external labor; in the Form 20-F figures refer
Slide 77: Headcount GSS, hubs and COE
HEADCOUNT GSS & HUBS & COE vs ADMINISTRATIVE (in %) GSS refers to Global Shared Services COE refers to Centre of Excellence 2015 2% 2016 10% 2018 20% HEADCOUNT Jan 2015 Re-structure Dec 2015 Re-structure Re-investment Dec 2016 -33% -28% Structural shift from TelCo to Tech: headcount Headcount includ
Slide 78: Headcount HQ digital
HEADCOUNT HQ DIGITAL vs HQ TOTAL (in %) HQ refer to headquarters 2015 2% 2016 21% 2018 50% HEADCOUNT Jan 2015 Re-structure Dec 2015 Re-structure Re-investment Dec 2016 -33% -28% Structural shift from TelCo to Tech: headcount Headcount includes both employees and temporary external labor; in the Form
Slide 79: Cost optimization: real estate costs
COST OPTIMIZATION: REAL ESTATE COSTS USD 3.9 billion Real estate costs 2016 TOTAL CAPEX AND STRUCTURAL OPEX Structural opex is total opex less service costs, costs of equipment and accessories, commercial costs and litigation costs Total capex excludes licenses Real estate costs include only costs f
Slide 80: Visualization of the cultural change: real estate
Visualization of the cultural change: real estate SHARING RATIO OFFICE OCCUPANT / OFFICE WORKSTATION (in points) -22% -13% -6% -1% SPACE (in k sqm) +75% NUMBER OF ADMINISTRATIVE SITES
Slide 81: Cultural change: open office space
Visualization of the cultural change: real estate OPEN OFFICE SPACE DEVELOPMENT (%) 2015 40% 2016 45% 2018 80% -22% -13% -6% -1% SPACE (in k sqm) NUMBER OF ADMINISTRATIVE SITES
Slide 82: Performance transformation
PERFORMANCE TRANSFORMATION RESUME MEANINGFUL DIVIDEND POLICY RESTRUCTURE RE-INVEST
Slide 83: Russia update
©VimpelCom Ltd Kjell Morten Johnsen Head of Major Markets and Russia CEO RUSSIA UPDATE
Slide 84: Strong position in Russia
STRONG POSITION IN RUSSIA 57 million mobile customers 36 million mobile data customers Leading position in Moscow > USD 3.4 billion mobile revenue in FY 2016 SOLID #3 POSITION IN MOBILE 10 million FTTB households passed, 2.2 million broadband customers STRONG FIXED LINE ASSETS Successful launch of f
Slide 85: Priorities
Priorities ARPU Customer base NPS Grow revenue Increase customer satisfaction Become fully digital Increase cash flow generation
Slide 86: Russia: performance stabilized
-16.9% YoY RUSSIA: PERFORMANCE STABILIZED SERVICE REVENUE MOBILE CUSTOMERS EBITDA AND EBITDA MARGIN CAPEX EXCL. LICENSES AND LTM CAPEX/REVENUE -1.3% YoY RUB BILLION RUB BILLION AND % -5.8% YoY +1.8% YoY underlying1 MILLION -2.5% YoY RUB BILLION AND % Total service revenue decreased: Declining fixed-
Slide 87: Monetization through data centric pricing
MONETIZATION THROUGH DATA CENTRIC PRICING Data centric pricing will enable operators to continue improving network quality Value for customer Usage (min, MB) Mobility driven GB driven Current mobile data pricing not sustainable Beeline leading market bundle penetration > 50% Market ready for data ce
Slide 88: FMC to support fixed-line business
FMC to support FixED-line business Successful launch of FMC: Strong pull: 500k+ convergent customers in just 9 months Strong 2.5x ARPU uplift and lower churn Become the leading convergent operator Fixed and convergent footprint expansion via partnerships with regional operators Focus on B2B segment
Slide 89: Investing smarter
Investing smarter 10 regions with Megafon 43 regions with MTS Top down NPS, quality of voice Top down NPS, quality of data Maximizing network investment efficiency through network sharing Medium-term goal to invest 15% capex to revenue Continuing network buildout, leveraging smart big data based app
Slide 90: VEON: rolling out global vision locally
Veon: Rolling out global vision locally “Big bang” go-to-market strategy Involvement of online celebrities (top bloggers) Active promo campaign Joint projects with popular web sites VEON internet platform differentiates through local content and partnerships LaModa – leading on-line fashion store Am
Slide 91: Final remarks
Change picture FINAL REMARKS Jean-Yves Charlier Chief Executive Officer
Slide 92: Q&A
Q&A Barcelona 27 February 2017
Slide 93: Appendix
APPENDIX Barcelona 27 February 2017
Slide 94: Debt maturity schedule
Debt maturity schedule Group debt maturity schedule by currency1 As at 31 December 2016, USD BILLION Group debt maturity schedule by Business Units 1 After effect of cross currency swaps 2016 2017 2018 2019 2020 2021 2022 2023 >2023 Total BD-BDC 0 5.3317893703497212 2.4859407247845921E-2 300.0044007
Slide 95: Liquidity analysis
Liquidity analysis Group Cash breakdown by currency (December 31, 2016) Unused RCF headroom at the end 4Q16: VimpelCom - syndicate USD 1.8 billion PJSC VimpelCom - Sberbank RUB 15 billion (USD 0.2 billion ) Unused VF/CF headroom at the end 4Q16: VimpelCom - CDB RMB 0.6 billion (USD 0.1 billion) Alge
Slide 96: Debt by entity
Debt by entity As at 31 December 2016, USD millions
Slide 97: Pakistan: double digit growth continues
Merger integration execution ahead of schedule: annual run-rate of PKR 8.2 billion (USD 78 million) synergies already achieved Mobilink and Warid rebranded as “Jazz” in January 2017 Double digit revenue growth, supported by all revenue streams, resulting in revenue market share gain In Q4 2016 mobil
Slide 98: Bangladesh results
Service revenue decreased 2% YoY: aggressive competition on price and offers, accelerated after the SIM-verification and in-market consolidation additional supplementary duties introduced in H1 2016 gap in 3G network especially in semi-rural and urban areas Sustained strong growth in data revenue of
Slide 99: Algeria: continued pressure on results
Service revenue continued to decrease double digit YoY, notwithstanding strong data revenue (+70% YoY) New CEO on board since 26 January, leading a renewed management team committed to the turnaround Key focal points of the mid-term turnaround: strengthening the organization, focus on commercial dis
Slide 100: Ukraine: strong results
Clear market leader in challenging environment Annual churn at historic low of 18% Service revenue increased 12% YoY, with mobile data revenue growing at 63% YoY Underlying EBITDA increased 19% YoY with a margin of 52.4% FY 2016 OCF margin2 a robust 36% Kyivstar 3G population coverage reached 61% fr
Slide 101: Uzbekistan: strengthened market position
Clear leader in NPS Mobile service revenue grew 4% YoY, despite increased competition Mobile data revenue grew 9% YoY Underlying EBITDA decreased by 12.0%, due to increased business costs and increased customer taxes, which impacted EBITDA margin negatively by 4.2 p.p. Capex increased due significan
Slide 102: Italy: Wind Tre hits the market
Wind Tre fully operational since December 30, 2016 The leading mobile operator in Italy with a customer base exceeding 31 million and market share above 37% Healthy service revenue1 growth of 2.1% with positive trends in all segments Strong EBITDA underlying2 growth of 7.5% with EBITDA margin at 34.
Slide 103: FOREX
FOREX VimpelCom Ltd. Average and closing rates of functional currencies to USD Index sheet Average rates Average rates Closing rates Consolidated VIP Ltd. 4Q16 4Q15 YoY FY16 FY15 YoY 4Q16 3Q16 QoQ Consolidated Russian Ruble RUB 63.07 65.94 -4.4 % 67.03 60.96 10.0 % 60.66 63.16 -4.0 % Customers Euro