19 slides from VEON Ltd. ORD's earnings presentation, Dec 2, 2010
Slide 1: Group financial results for the third quarter of 2010
VimpelCom Ltd Group financial results for the third quarter of 2010 Amsterdam December 2nd, 2010 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 Presentation President and Chief Executive Officer Henk van Dalen Chief Financial Officer will be joined by: Q&A Session Elena Shmatova Head of Russian operations Dmitry Kromsky Head of the CIS operations Andrew Simmons CFO of Ukrainian operations Alexey Subbotin Head
Slide 4: Corporate highlights
Corporate highlights Quarterly results • Number of mobile subscriptions up to 92.0 million (40.7% y-o-y) • Broadband subscriptions grew to 3.1 million (58.8% y-o-y) • Net operating revenues increased by 24.1% year-on-year to $2.8bn • Adjusted OIBDA* up to $1.4bn (20.0% y-o-y), consolidated OIBDA mar
Slide 5: Group Financial Highlights
Group Financial Highlights Revenue*, USD mln OIBDA**, USD mln +6.9% -62 361 +9.2% 426 -28 176 242 2,824 2,642 2,099 1,378 1,262 988 Russia 3Q10 Ukraine 3Q10 CIS 3Q10 SEA and VimpelCom VimpelCom Russia 3Q10 Ukraine CIS 3Q10 SEA and VimpelCom VimpelCom eliminations Ltd 3Q10 Ltd 2Q10 3Q10 eliminations
Slide 6: Group Financial Position
Group Financial Position Liquidity position, USD mln Key Ratios and Indicators ($ mln) Sept 30, Jun 30, Mar 31, Dec 31, 2010 2010 2010 2009 Cash and Cash Equivalents 2,467 2,353 1,530 1,447 Total Assets 21,046 20,943 15,032 14,733 Total Debt 6,493 6,333 6,648 7,353 4,769 -Short-term 2,126 1,532 1,35
Slide 7: Group Debt Profile as of September 30, 2010
Group Debt Profile as of September 30, 2010* Debt Maturity Schedule, USD mln 2,304 Total debt – $6.5 bn 1,950 Paid in 2010 - $1.6 bn 713 713 Still due in 2010 – $0.7 bn 432 1,408 231 1,000 928 749 1,591 611 34 29 1Q10 2Q10 3Q10 4Q10 2010 2011 2012 2013 2014 2015 2016 2017 2018 - paid - due in 2010 -
Slide 8: Dividend policy
Dividend policy • On November 15, 2010, Supervisory Board declared the payment of an interim dividend of US$0.46 per ADS or $600 million • The annual dividends are equal to a minimum of 50% of Free Cash Flow from Kyivstar and 50% of Free Cash Flow from VimpelCom's Russian operations • Free Cash Flow
Slide 9: Russia: Financial Highlights
Russia: Financial Highlights Revenue, RUR bn OIBDA (RUR bn) and OIBDA Margin +5.0% y-o-y -3.0% y-o-y +4.1% q-o-q +3.9% q-o-q 59.1 61.2 61.7 64.3 58.8 57.4 10.5 1 00 . 0 % 9.9 9.9 9.9 9.9 31.2 9.5 30.4 30.2 90 . 0 % 28.0 29.1 27.2 80 . 0 % 70 . 0 % 51.5% 50.9% 53.8 47.5% 47.5% 47.2% 47.0% 60 . 0 % 49
Slide 10: Russia: Operating Highlights
Russia: Operating Highlights Mobile subscriptions, mln ARPU and MOU +1.2% y-o-y +1.4% q-o-q 343 300. 0 332 330 323 317 308 218 219 222 212 214 50.0 51.0 50.9 51.3 50.9 51.6 204 150. 0 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 ARPU (RUR) MOU (min) Broadband subscriptions
Slide 11: Russia Fixed-line Operations
Russia Fixed-line Operations Business segment, RUR bn - 4.1% y-o-y +4.1% q-o-q 5.3 5.0 4.8 4.5 4.6 4.8 Revenue, RUR bn 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 +5.5% y-o-y +5.7% q-o-q Wholesale segment, RUR bn + 14% y-o-y +8.6% q-o-q 9.9 9.9 9.9 9.5 9.9 10.5 3.5 3.6 3.4 3.7 4.0 3.2 2Q 09 3Q 09 4Q 09 1Q 1
Slide 12: Ukraine (pro-forma): Financial Highlights
Ukraine (pro-forma): Financial Highlights Revenue, UAH bn OIBDA (UAH bn) and OIBDA Margin +3.6% y-o-y +17% y-o-y +9.6% q-o-q +15% q-o-q 1.9 3.4 1.7 1.7 8 0 . 0 % 3.1 3.2 3.2 1.6 1.6 3.0 7 5 . 0 % 2.8 7 0 . 0 % 1.4 56.8% 6 5 . 0 % 54.6% 54.2% 50.2% 51.8% 6 0 . 0 % 5 5 . 0 % 49.4% 5 0 . 0 % 4 5 . 0 %
Slide 13: Ukraine (pro-forma): Operating Highlights
Ukraine (pro-forma): Operating Highlights Mobile subscriptions, mln ARPU and MOU +2.3% y-o-y +4.1% q-o-q 40.8 42.6 40.2 40.0 39.7 600. 0 36.5 427 433 406 379 450. 0 331 24.2 24.5 24.0 23.9 24.1 25.1 296 300. 0 150. 0 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 ARPU (UAH) MOU (min) Fi
Slide 14: CIS Operations
CIS Operations* Revenue, USD mln OIBDA (USD mln)and OIBDA Margin +22% y-o-y +14% y-o-y +7.4% q-o-q +8.7% q-o-q 336 361 280 297 294 295 162 176 41 8 0 . 0 % 155 39 145 140 7 5 . 0 % 139 37 35 34 7 0 . 0 % 35 6 5 . 0 % 52.1% 6 0 . 0 % 49.5% 49.2% 47.4% 48.2% 48.8% 320 5 5 . 0 % 260 259 261 297 5 0 . 0
Slide 15: South-East Asia
South-East Asia • Operations in 51 provinces out of 63 • 57% population coverage • Launch of new services: WAP-portal, SMS-promotion • Development of alternative sales channels Vietnam • Services are now available in 22 out of 24 provinces with 79% population covered • Sotelco maintained third place
Slide 16: Summary
Summary • Solid financial performance across all key business units • Launched set of measures to regain momentum in Russia • Green light for business integration in Ukraine • Continue transaction with Weather Investments 16 © VimpelCom Ltd 2010
Slide 17: APPENDICES
APPENDICES 17 © VimpelCom Ltd 2010
Slide 18: FOREX Development
FOREX Development 4Q09 1Q10 2Q10 3Q10 Opening Average Closing Average Closing Average Closing Average Closing Currency rate rate rate rate rate rate rate rate rate RUR 30.01 29.47 30.24 29.89 29.36 30.24 31.20 30.62 30.40 UAH 8.00 7.99 7.99 7.99 7.93 7.92 7.91 7.90 7.91 KZT 150.95 149.77 148.36 147.
Slide 19: 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: 119% Penetration: 90% GDP* 6,400 GDP* 4,500 Population: 140.7 mln. Population: 3.0 mln. Penetration: 149% Acquired: Nov. 2006 GDP*: 15,200 Penetration: 88% GDP* 5,900