VEON Ltd. · NASDAQ:VEON
VEON — VimpelCom — Q2 2013 Earnings Presentation
26 slides from VEON's earnings presentation, Aug 7, 2013
Slide 1: 2Q 2013 Presentation
2Q 2013 Presentation Amsterdam, August 7, 2013 Jo Lunder - CEO Henk van Dalen - CFO
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 and networ
Slide 3: A Solid Performance in 2Q13 Despite Impact of Regulatory and Governmental Measures
A Solid Performance in 2Q13 Despite Impact of Regulatory and Governmental Measures Comparisons with 2Q12 * Customer base 2012 has been adjusted for sale of Vietnam and Cambodia and adjustments in Algeria and Ukraine ** Net Income attributable to VimpelCom shareholders Revenues (USD billion) 5.7 (+1%
Slide 4: Key Developments
Key Developments Andrew Davies appointed as new CFO Contract of CEO Jo Lunder extended to April 2016 Voluntarily transfer of listing to NASDAQ Launched LTE in Moscow Evaluating strategic options for Canadian investment VimpelCom joined United Nations Global Compact
Slide 5: Business Units Performance
Business Units Performance
Slide 6: Russia Performance 2Q13
Russia Performance 2Q13: Solid Results with Continued Strong Mobile Data Revenue Performance Revenues (RUB billion) (CHART) +5% YoY (CHART) +4% YoY (CHART) CAPEX* (RUB billion) Highlights: Revenue increased 5% YoY with 6% growth in mobile revenues and 2% in fixed-line revenues Mobile data revenue gr
Slide 7: Italy Performance 2Q13: Continued Market Outperformance
(CHART) (CHART) Italy Performance 2Q13: Continued Market Outperformance Total Revenues (EUR million) -8% YoY Excl. MTR +2% YoY EBITDA and EBITDA Margin (EUR million) -9% YoY Excl. MTR -3% YoY CAPEX* (EUR billion) Highlights: Continued outperformance in an ongoing challenging mobile market Revenues i
Slide 8: Africa & Asia Performance 2Q13
(CHART) (CHART) Africa & Asia* Performance 2Q13: Subscriber Growth Despite Regulatory and Governmental Measures Revenues (USD million) -5% YoY Organic stable YoY EBITDA and EBITDA Margin (USD million) -5% YoY Organic -2% YoY CAPEX** (USD million) Highlights: Revenues stable YoY organically at USD 91
Slide 9: Ukraine Performance 2Q13
(CHART) (CHART) Ukraine Performance 2Q13: Subscriber Growth but Pressure on Performance Revenues (UAH billion) -1% YoY EBITDA and EBITDA Margin (UAH billion) -6% YoY CAPEX* (UAH billion) Highlights: Revenues decreased 1% YoY to UAH 3.2 billion, due to YoY decline in mobile revenues Strong increase i
Slide 10: CIS Performance 2Q13: Continued Positive Performance
(CHART) (CHART) CIS* Performance 2Q13: Continued Positive Performance Revenues (USD million) 411 +17% YoY Organic +19% YoY 478 EBITDA and EBITDA Margin (USD million) +32% YoY Organic +34% YoY CAPEX CAPEX / Revenue CAPEX** (USD million) Highlights: Revenues increased 19% YoY organically with strong p
Slide 11: Financial Highlights 2Q 2013
Financial Highlights 2Q 2013 Henk van Dalen CFO
Slide 12: Business Units Financial Performance
BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS Revenue Revenue Revenue EBITDA EBITDA EBITDA Organic FX and others Reported Organic FX and others Reported Russia +5% -2% +3% +4% -2% +2% Italy -8% +1% -7% -9% +1% -8% Africa & Asia 0% -5% -5% -2
Slide 13: Debt, Cash and Ratios: Stable Financial Position
(CHART) Key Components * LTM stands for "last twelve months" to reporting date Net Cash Flow From Operating Activities (USD billion) Debt, Cash and Ratios: Stable Financial Position (CHART) (USD million) Jun 30, 2013 Cash, Cash Equivalents and deposits 4,764 Total Assets 52,547 Gross Debt 27,386 -Sh
Slide 14: Well Balanced Debt Composition and Maturity Profile
Well Balanced Debt Composition and Maturity Profile During 2Q13 Prepayment on the WIND Senior bank loan 2014 and 2015 maturities for EUR 575 million through issuance of Senior Secured Notes by Wind Acquisition Finance Repayment of Eurobond by OJSC VimpelCom for USD 801 million. Available headroom un
Slide 15: Jo Lunder, CEO
JoLunder ceo S&Vimpetcom
Slide 16: On track to deliver on the Value Agenda 2013-2015
On track to deliver on the Value Agenda 2013-2015 Solid operational performance in most businesses Top-line organic growth, despite impact from governmental and regulatory measures Strong mobile data revenue growth Continued operational improvement in Russia and LTE launched in Moscow Underlying EBI
Slide 17: Q&A
Q&A
Slide 18: Further information
Further information Investor Relations Claude Debussylaan 88 1082 MD Amsterdam The Netherlands T: +31 20 79 77 234 E: Investor_Relations@vimpelcom.com Install VimpelCom iPad App Visit our new website www.vimpelcom.com
Slide 19: Thank you!
Thank you!
Slide 20: Appendices
Appendices
Slide 21: Solid Operational Performance in Russia
(CHART) +2% YoY ARPU +6% YoY MOU Mobile subscribers (million) (CHART) ARPU and MOU (RUB) (min) ARPU MOU +2% YoY (CHART) (CHART) Fixed broadband ARPU Mobile broadband ARPU Solid Operational Performance in Russia Broadband subscribers (million) Broadband ARPU (RUB) +4% YoY Fixed +6% YoY Mobile +4% YoY
Slide 22: Strong Operational Performance in Italy
Strong Operational Performance in Italy +5% YoY Broadband subscribers* (thousands) +10% YoY -1% YoY Fixed +61% YoY Mobile Consumer * Mobile broadband include Consumer customers that have Perfomed at least one mobile Internet event in the previous Month on 2.5G/3G/3.5G (CHART) (CHART) (CHART) (CHART)
Slide 23: Financing Structure as of June 30, 2013
USD 2.7 bn shareholder loan (PIK) Financing Structure as of June 30, 2013 VimpelCom Ltd. VimpelCom Amsterdam B.V. VimpelCom Holdings B.V. VimpelCom Amsterdam Finance B.V. OJSC VimpelCom USD 2.7 bn WIND Telecom S.p.A. Wind Acquisition Holdings Finance S.p.A. WIND Acquisition Finance SA WIND Telecomun
Slide 24: FOREX Development
Source: National Banks of the respective countries, Company calculations FOREX Development
Slide 25: Reconciliation Tables
Reconciliation Tables * Income statement 2Q12 and HY12 has been amended to reflect classification of certain operating costs at the Group level without any impact on net income and performance of the business unit Reconciliation of consolidated EBITDA of VimpelCom*
Slide 26: Reconciliation of consolidated net debt of VimpelCom
Reconciliation of consolidated net debt of VimpelCom Reconciliation Tables