27 slides from VEON Ltd. ORD's earnings presentation, May 15, 2013
Slide 1: 1Q 2013 Presentation
1Q 2013 © VimpelCom Ltd 2013 Presentation Amsterdam, May 15, 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, refinancing plans and dividend guideline
Slide 3: Continued Profitable Growth in 1Q13
Continued Profitable Growth in 1Q13 Despite Impact of Regulatory and Governmental Measures Revenues EBITDA EBITDA margin Total mobile subscriber (USD billion) (USD billion) (%) Base (million) 5.6 2.3 42.0 215 © VimpelCom Ltd 2013 (+1% organic) (+3% organic) (+0.9 p.p.) (+4%) Net income* Net cash fro
Slide 4: Key Developments
Key Developments • Final dividend 2012 and extra-ordinary dividend for a total of USD 2.0 billion or USD 1.14 per share • Reaffirmed dividend guidelines of at least USD 0.80 per common share* • Sold stake in Cambodia © VimpelCom Ltd 2013 • Successfully issued EUR 575 million bonds through a subsidia
Slide 5: Business Units Performance
Business Units Performance © VimpelCom Ltd 2013 5
Slide 6: Russia Performance 1Q13: Continued Positive Operational Development
Russia Performance 1Q13: Continued Positive Operational Development Revenues EBITDA and EBITDA Margin CAPEX* (RUB billion) (RUB billion) (RUB billion) +5% YoY +6% YoY 50.7 51.3 70.3 74.5 73.6 32.2 30.4 29.3 67.0 70.1 27.7 30.3 12.3 12.6 12.1 12.0 11.4 43.1% 43.2% 18% 18% 41.3% 41.3% 41.8% © VimpelCo
Slide 7: Italy Performance 1Q13: Continued Market Outperformance
Italy Performance 1Q13: Continued Market Outperformance Total Revenues EBITDA and EBITDA Margin CAPEX* (EUR million) (EUR million) (EUR billion) -9% YoY -5% YoY Excluding MTR +1% YoY Excluding MTR +2% YoY 0.9 0.9 1,383 487 524 537 514 1,346 1,329 1,369 461 1,229 363 368 370 369 341 17% 17% 132 140 6
Slide 8: Africa & Asia Performance 1Q13: Subscriber Growth Despite Regulatory Measures
Africa & Asia* Performance 1Q13: Subscriber Growth Despite Regulatory and Governmental Measures Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) -7% YoY -3% YoY Organic -1% YoY Organic +2% YoY 400 466 361 424 424 426 412 927 953 904 937 864 48.9% 46.9% 47.7% 45.7%
Slide 9: Ukraine Performance 1Q13: Migration to Bundled Offerings Completed
Ukraine Performance 1Q13: Migration to Bundled Offerings Completed Revenues EBITDA and EBITDA Margin CAPEX* (UAH billion) (UAH billion) (UAH billion) +3% YoY -1% YoY 3.6 1.8 1.8 3.2 3.5 3.2 1.6 1.6 3.0 1.6 Thousands 0.3 0.3 1.8 1.8 0.2 0.3 0.3 51.1% 50.2% 51.2% 52.5% 49.0% © VimpelCom Ltd 2013 3.3 1
Slide 10: CIS Performance 1Q13: Profitable Growth
CIS* Performance 1Q13: Profitable Growth Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) +19% YoY +37% YoY Organic +20% YoY Organic +38% YoY 478 488 234 235 451 220 378 411 38 38 38 413 39 182 384 36 161 49.0% 48.1% 48.8% © VimpelCom Ltd 2013 440 449 412 44.3% 22%
Slide 11: Financial Highlights 1Q 2013
Financial Highlights 1Q 2013 © VimpelCom Ltd 2013 Henk van Dalen CFO 11
Slide 12: Financial Performance: Delivering Profitable Growth
Financial Performance: Delivering Profitable Growth GROUP BUSINESS UNITS (USD million) 1Q13 1Q12 YoY Revenue EBITDA Revenues 5,591 5,619 0% FX and FX and Organic Reported Organic Reported EBITDA 2,348 2,311 2% others others D&A/Other (1,241) (1,296) -4% Russia 5% -1% 4% 6% -1% 5% EBIT 1,107 1,015 9%
Slide 13: Debt, Cash and Ratios: Solid Financial Position
Debt, Cash and Ratios: Solid Financial Position Key Components Consolidated Cash and Net Debt Development Actual 1Q 2013 (USD million) Mar 31, 5,754 28,615 2013 26,987 5,016 (USD million) 1,280 226 890 294 (2,375) 581 111 22,861 Cash, Cash Equivalents and deposits 5,754 21,971 (117) Total Assets 54,
Slide 14: Well Balanced Debt Composition and Maturity Profile
Well Balanced Debt Composition and Maturity Profile Group Debt Maturity Schedule per 31 March 2013 (adjusted for recent transactions after 1Q13) Issuance of SSN by Wind in April 2013 9.0 Proceeds Eurobonds used for repayment repayment Wind 5.9 OTH VimpelCom/OJSC © VimpelCom Ltd 2013 2.7 2.2 2.4 1.2
Slide 15: Cash Returns to Shareholders Objectives
Cash Returns to Shareholders Objectives Dividends (USD million) 2,003 Per share 1,227 1,302 1,388 Extraordinary dividend 0.79 0.80 Ordinary dividend 0.79 © VimpelCom Ltd 2013 615 0.35 2011 2012 2013 2011 2012 2013 #shares outstanding 1.628 bn 1.628 bn 1.757 bn Dividend guideline* • Intention to
Slide 16: Conclusion
Conclusion © VimpelCom Ltd 2013 Jo Lunder CEO 16
Slide 17: On track to deliver on the Value Agenda 2013-2015
On track to deliver on the Value Agenda 2013-2015 • Continued profitable growth Group Objectives 1Q13 Assumptions 2013-2015 Revenues +1% © VimpelCom Ltd 2013 Mid single digit CAGR • Constant currency basis 2012 Revenues (excl. MTR cut in Italy) +4% • No major regulatory changes EBITDA +3% Mid single
Slide 18: Q&A
© VimpelCom Ltd 2013 18 Q&A
Slide 19: Thank you!
© VimpelCom Ltd 2013 19 Thank you!
Slide 20: 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 2013 E: Investor_Relations@vimpelcom.com www.vimpelcom.com 20
Slide 21: Appendices
© VimpelCom Ltd 2013 21 Appendices
Slide 22: Operating Highlights Russia
Operating Highlights Russia Mobile subscribers ARPU and MOU (million) (RUB) (min) flat YoY +2% YoY ARPU +9% YoY MOU 55.6 336 352 343 56.2 56.1 55.7 321 55.7 314 282 290 279 277 254 © VimpelCom Ltd 2013 1Q12 2Q12 3Q12 4Q12 1Q13 1Q12 2Q12 3Q12 4Q12 1Q13 ARPU MOU Broadband subscribers Broadband ARP
Slide 23: Operating Highlights Italy
Operating Highlights Italy Mobile subscribers ARPU and MOU (million) (EUR) (min) +4% YoY -16% YoY ARPU +5% YoY MOU 22.0 14.7 15.0 14.0 13.7 21.6 12.4 21.5 205 209 202 212 216 21.1 21.2 © VimpelCom Ltd 2013 1Q12 2Q12 3Q12 4Q12 1Q13 1Q12 2Q12 3Q12 4Q12 1Q13 ARPU MOU Broadband subscribers* Broadban
Slide 24: Simplified legal / financing structure per 31-Mar-13
Simplified legal / financing structure per 31-Mar-13 VimpelCom Group VimpelCom Ltd. VIP USD 4.2 bn OJSC Group USD 9.5 bn VimpelCom Wind Group USD 14.0 bn Amsterdam B.V. OTH Group USD 0.9 bn Gross debt USD 28.6 bn VimpelCom Holdings VimpelCom Amsterdam WIND Telecom B.V. Finance B.V. S.p.A. I © Vimpel
Slide 25: FOREX Development
FOREX Development Average rates Closing rates 1Q13 1Q12 YoY 1Q13 FY12 Delta Russian Ruble 30.41 30.03 -1.2% 31.08 30.37 -2.3% Euro 0.76 0.76 0.6% 0.78 0.76 -2.8% © VimpelCom Ltd 2013 Algerian Dinar 78.65 75.13 -4.5% 79.50 78.94 -0.7% Pakistan Rupee 97.89 90.61 -7.4% 98.43 97.14 -1.3% Bangladeshi Tak
Slide 26: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated EBITDA of VimpelCom USD mln 1Q13 1Q12* Unaudited EBITDA 2,348 2,311 Depreciation (766) (721) Amortization (454) (532) Impairment loss (18) - © VimpelCom Ltd 2013 Loss on disposals of non-current assets (3) (43) EBIT 1,107 1,015 Financial Income an
Slide 27: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated net debt of VimpelCom USD mln 1Q13 4Q12 1Q12 Net debt 22,861 21,971 24,339 Cash and cash equivalents 5,564 4,949 4,033 Long - term and short-term deposits 190 67 219 Gross debt 28,615 26,987 28,591 © VimpelCom Ltd 2013 Interest accrued related to