18 slides from VEON Ltd. ORD's earnings presentation, 2010
Slide 1: VimpelCom Ltd 2Q10 Presentation
VimpelCom Ltd 2Q10 Presentation 1 © VimpelCom Ltd 2010
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 strategy, development plans and anticipated performance. The forw
Slide 3: Participants
Participants Alexander Izosimov, President and Chief Presentation Executive Officer, VimpelCom Ltd will be joined by: Q&A Session Henk van Dalen Chief Financial Officer, VimpelCom Ltd Elena Shmatova General Director, Head of Russian operations Martin Furuseth Chief Marketing Officer, Russian operati
Slide 4: Quarter in brief
Quarter in brief • Combination of OJSC VimpelCom and Kyivstar into VimpelCom Ltd. completed April 21, 2010 • Group revenues reached $ 2.6 bn reflecting growth across all key segments of our business • The consolidated adjusted OIBDA reached $1.3 bn with margin of 47.8% showing best in class profitab
Slide 5: Group Financial Highlights
Group Financial Highlights Revenue*, USD mln OIBDA (USD mln) and OIBDA Margin** +18.4% +21.2% -47 -29 336 162 311 165 47.8% 46.7% 2,642 2,231 1,262 2,042 964 1,041 Russia 2Q10 Ukraine CIS 2Q10 SEA and VimpelCom VimpelCom Russia 2Q10 Ukraine CIS 2Q10 SEA, HQ and VimpelCom VimpelCom 2Q10 eliminations
Slide 6: Group Financial Position
Group Financial Position Liquidity position, USD mln Key Ratios and Indicators ($ mln) Jun 30, Mar 31, Dec 31, 2010 2010 2009 Cash and Cash Equivalents 2,353 1,530 1,447 Total Assets 20,943 15,032 14,733 4,539 Total Debt 6,333 6,648 7,353 4,272 4,365 -Short-term 1,532 1,356 1,813 2,650 -Long-term 4,
Slide 7: Group Debt Profile as of June 30, 2010
Group Debt Profile as of June 30, 2010* Debt Maturity Schedule, USD mln 1,801 1,895 Total debt – $6.3 bn Paid in 2010 - $1.6 bn 213 213 Still due in 2010 – $0.2 bn ** 1,392 429 1,000 231 736 1,588 609 928 32 27 1Q10 2Q10 3Q10 4Q10 2010 2011 2012 2013 2014 2015 2016 2017 2018 - paid - due in 2010 - d
Slide 8: Russia: Financial Highlights
Russia: Financial Highlights Revenue, RUR bn OIBDA (RUR bn) and OIBDA Margin 59.1 61.2 58.8 61.7 30.4 31.2 28.9 56.3 57.4 27.3 28.0 27.2 1 0 0 .0 % 9 0 .0 % 9.9 9.9 9.9 9.5 9.9 10.8 8 0 .0 % 7 0 .0 % 48.6% 51.5% 50.9% 47.2% 47.5% 47.5% 6 0 .0 % 49.2 51.3 48.9 47.9 51.8 5 0 .0 % 45.5 4 0 .0 % 3 0 .0
Slide 9: Russia: Operating Highlights
Russia: Operating Highlights Mobile subscriptions, mln ARPU and MOU 3 00.0 332 330 323 317 307 308 214 218 219 212 49.4 50.0 50.9 51.3 50.9 203 204 51.0 1 5 0.0 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 ARPU (RUR) MOU (min) Broadband subscriptions, ‘000 Broadband ARPU,
Slide 10: Russia Fixed-line Operations
Russia Fixed-line Operations Business segment, RUR bn +3.0% 5.8 5.3 5.0 4.8 4.5 4.6 Revenue, RUR bn +4.7% 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 Wholesale segment, RUR bn +8.2% 10.7 9.9 9.9 9.9 9.9 9.5 3.6 3.2 3.5 3.6 3.4 3.7 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 Resid
Slide 11: Ukraine (pro-forma): Financial Highlights
Ukraine (pro-forma): Financial Highlights Revenue, UAH bn OIBDA (UAH bn) and OIBDA Margin 3.2 1.7 8 0 .0 % 3.1 3.2 3.1 1.6 1.6 1.6 1.7 3.0 7 5 .0 % 2.9 7 0 .0 % 1.4 54.6% 6 5 .0 % 52.1% 54.2% 50.2% 51.8% 49.4% 6 0 .0 % 5 5 .0 % 5 0 .0 % 4 5 .0 % 4 0 .0 % 3 5 .0 % 3 0 .0 % 1Q09 2Q09 3Q09 4Q09 1Q10 2Q
Slide 12: Ukraine (pro-forma): Operating Highlights
Ukraine (pro-forma): Operating Highlights Mobile subscriptions, mln ARPU (UAH) and MOU (Min) 39.8 40.8 40.0 39.2 6 00.0 36.1 36.1 431 410 379 4 5 0.0 331 296 24.6 24.2 24.5 24.0 23.9 24.1 276 3 00.0 1 5 0.0 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 ARPU (UAH) MOU (min) Fixed-
Slide 13: CIS Operations
CIS Operations* Revenue, USD mln OIBDA (USD mln)and OIBDA Margin 336 286 280 297 294 295 8 0 .0 % 162 39 155 145 140 7 5 .0 % 140 139 37 37 35 34 7 0 .0 % 35 6 5 .0 % 52.1% 49.2% 6 0 .0 % 5 5 .0 % 49.2% 49.5% 47.4% 48.2% 260 259 261 297 249 245 5 0 .0 % 4 5 .0 % 4 0 .0 % 3 5 .0 % 3 0 .0 % 1Q09 2Q09
Slide 14: South-East Asia
South-East Asia • Operations in 51 out of 63 provinces with 58% population coverage • 0.8 mln mobile subscriptions Vietnam • Top-3 mobile operator after the first year of operations • Active customer base increased to 525,000 • 25% revenue growth quarter-on-quarter Cambodia 14 © VimpelCom Ltd 2010
Slide 15: Summary
Summary • Good set of quarterly results with revenue growth across all segments • Strong cash generation with operating cash flow of over $1 billion for the second quarter and $1.8 billion for the first half of 2010 • Positive market growth outlook in our key markets • New organizational structure p
Slide 16: APPENDICES
APPENDICES 16 © VimpelCom Ltd 2010
Slide 17: Map of Operations
Map of Operations Population: 45.3 mln. Population: 4.3 mln. URS acquired: Nov ’05 Kyivstar: Apr ‘10 Acquired: Jul. 2006 Penetration: 112% Penetration: 90% GDP* 6,400 GDP* 4,500 Population: 140.7 mln. Population: 3.0 mln. Penetration: 144% Acquired: Nov. 2006 GDP*: 15,200 Penetration: 88% GDP* 5,900
Slide 18: FOREX Development
FOREX Development 3Q09 4Q09 1Q10 2Q10 Opening Average Closing Average Closing Average Closing Average Closing Currency rate rate rate rate rate rate rate rate rate RUR 31.04 31.33 30.09 29.47 30.24 29.89 29.36 30.24 31.20 UAH 7.64 7.82 8.01 7.99 7.99 7.99 7.93 7.92 7.91 KZT 150.43 150.75 150.95 149.