26 slides from VEON Ltd. ORD's earnings presentation, Aug 7, 2013
Slide 1: 2Q 2013 Presentation
2Q 2013 © VimpelCom Ltd 2013 Presentation Amsterdam, August 7, 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, expected capital expenditures and networ
Slide 3: A Solid Performance in 2Q13
A Solid Performance in 2Q13 Despite Impact of Regulatory and Governmental Measures Revenues EBITDA EBITDA margin Total mobile subscriber (USD billion) (USD billion) (%) Base* (million) 5.7 2.4 42.4 215 © VimpelCom Ltd 2013 (+1% organic) (-1% organic) (-0.8 p.p.) (+5%) Net income** Net cash from oper
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 © VimpelCom Ltd 2013 • Launched LTE in Moscow • Evaluating strategic options for Canadian investment • VimpelCom joined United Nations Global Compact 4
Slide 5: Business Units Performance
Business Units Performance © VimpelCom Ltd 2013 5
Slide 6: Russia Performance 2Q13
Russia Performance 2Q13: Solid Results with Continued Strong Mobile Data Revenue Performance Revenues EBITDA and EBITDA Margin CAPEX* (RUB billion) (RUB billion) (RUB billion) +5% YoY +4% YoY 74.5 50.7 53.3 73.6 73.8 70.3 70.1 32.2 31.5 12.6 12.1 12.6 30.3 30.4 29.3 12.3 12.0 © VimpelCom Ltd 2013 43
Slide 7: Italy Performance 2Q13
Italy Performance 2Q13: Continued Market Outperformance Total Revenues EBITDA and EBITDA Margin CAPEX* (EUR million) (EUR million) (EUR billion) -8% YoY -9% YoY Excl. MTR +2% YoY Excl. MTR -3% YoY 1,383 1,329 1,369 537 1,266 524 514 0.9 1,229 475 0.9 461 368 370 369 339 © VimpelCom Ltd 2013 341 140
Slide 8: Africa & Asia Performance 2Q13
Africa & Asia* Performance 2Q13: Subscriber Growth Despite Regulatory and Governmental Measures Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) -5% YoY -5% YoY Organic stable YoY Organic -2% YoY 400 953 937 466 351 904 910 424 426 412 441 864 © VimpelCom Ltd 2013
Slide 9: Ukraine Performance 2Q13
Ukraine Performance 2Q13: Subscriber Growth but Pressure on Performance Revenues EBITDA and EBITDA Margin CAPEX* (UAH billion) (UAH billion) (UAH billion) -1% YoY -6% YoY 3.6 3.5 1.8 1.8 3.2 Thousands 3.2 0.3 3.2 1.6 0.3 1.6 1.5 1.8 0.3 0.3 0.3 1.7 © VimpelCom Ltd 2013 50.2% 51.2% 52.5% 49.0% 48.0%
Slide 10: CIS Performance 2Q13
CIS* Performance 2Q13: Continued Positive Performance Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) +17% YoY +32% YoY Organic +19% YoY Organic +34% YoY 478 488 482 234 235 240 451 220 411 38 38 41 38 384 397 39 182 49.0% 48.8% 49.8% 48.1% © VimpelCom Ltd 2013 44
Slide 11: Financial Highlights 2Q 2013
Financial Highlights 2Q 2013 © VimpelCom Ltd 2013 Henk van Dalen CFO 11
Slide 12: Financial Performance
Financial Performance GROUP BUSINESS UNITS (USD million) 2Q13 2Q12 YoY Revenue EBITDA Revenues 5,718 5,745 0% FX and FX and Organic Reported Organic Reported EBITDA 2,425 2,481 -2% others others D&A/Other (1,201) (1,289) -7% Russia +5% -2% +3% +4% -2% +2% EBIT 1,224 1,192 3% Italy -8% +1% -7% -9% +1
Slide 13: Debt, Cash and Ratios: Stable Financial Position
Debt, Cash and Ratios: Stable Financial Position Key Components Consolidated Cash and Net Debt Development Actual 2Q 2013 (USD million) Jun 30, 28,615 (5,754) 2013 4,764 27,386 (USD million) 1,986 (1,392) 751 268 (2,450) 22,861 (131) 444 (62) 347 22,622 Cash, Cash Equivalents and deposits 4,764 Tota
Slide 14: Well Balanced Debt Composition and Maturity Profile
Well Balanced Debt Composition and Maturity Profile Group Debt Maturity Schedule per 30 June 2013 9.1 Proceeds Eurobonds used for repayment Wind 5.9 OTH VimpelCom/OJSC © VimpelCom Ltd 2013 2.6 2.3 1.3 1.5 1.1 0.8 1.0 1.0 0.4 0.6 0.2 0.4 2013* 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 >2023 O
Slide 15: Conclusion
Conclusion © VimpelCom Ltd 2013 Jo Lunder CEO 15
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 © VimpelCom Ltd 2013 • Continued operational improvement in Russia and LTE laun
Slide 17: Q&A
© VimpelCom Ltd 2013 17 Q&A
Slide 18: Further information
Further information Investor Relations Claude Debussylaan 88 1082 MD Amsterdam The Netherlands T: +31 20 79 77 234 © VimpelCom Ltd 2013 E: Investor_Relations@vimpelcom.com Visit our new website Install VimpelCom www.vimpelcom.com iPad App 18
Slide 19: Thank you!
© VimpelCom Ltd 2013 19 Thank you!
Slide 20: Appendices
© VimpelCom Ltd 2013 20 Appendices
Slide 21: Solid Operational Performance in Russia
Solid Operational Performance in Russia Mobile subscribers ARPU and MOU (million) (RUB) (min) +2% YoY +2% YoY ARPU +6% YoY MOU 57.1 352 343 341 56.2 56.1 336 321 55.7 55.7 290 294 279 282 277 © VimpelCom Ltd 2013 2Q12 3Q12 4Q12 1Q13 2Q13 2Q12 3Q12 4Q12 1Q13 2Q13 ARPU MOU Broadband subscribers Br
Slide 22: Strong Operational Performance in Italy
Strong Operational Performance in Italy Mobile subscribers ARPU and MOU (million) (EUR) (min) +5% YoY -17% YoY ARPU +12% YoY MOU 22.3 15.0 22.0 14.0 13.7 12.4 12.4 21.6 21.5 233 21.2 209 202 212 216 © VimpelCom Ltd 2013 2Q12 3Q12 4Q12 1Q13 2Q13 2Q12 3Q12 4Q12 1Q13 2Q13 ARPU MOU Broadband subscri
Slide 23: Financing Structure as of June 30, 2013
Financing Structure as of June 30, 2013 VimpelCom Group VimpelCom Ltd. VIP USD 4.2 bn OJSC Group USD 8.2 bn VimpelCom Wind Group USD 14.1 bn Amsterdam B.V. OTH Group USD 0.9 bn Gross debt USD 27.4 bn VimpelCom Holdings VimpelCom Amsterdam WIND Telecom B.V. Finance B.V. S.p.A. I © VimpelCom Ltd 2013
Slide 24: FOREX Development
FOREX Development Average rates Closing rates 2Q13 2Q12 YoY 2Q13 FY2012 Delta Russian Ruble 31.62 30.98 -2.0% 32.71 30.37 -7.2% Euro 0.77 0.78 1.9% 0.77 0.76 -1.4% Algerian Dinar 79.14 75.99 -4.0% 80.20 78.94 -1.6% © VimpelCom Ltd 2013 Pakistan Rupee 98.49 92.10 -6.5% 99.60 97.14 -2.5% Bangladeshi T
Slide 25: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated EBITDA of VimpelCom* USD mln 2Q13 2Q12** 1H13 1H12** Unaudited EBITDA 2,425 2,481 4,773 4,792 Depreciation (748) (726) (1,514) (1,447) Amortization (438) (522) (892) (1,054) Impairment loss (4) - (22) - © VimpelCom Ltd 2013 Loss on disposals of no
Slide 26: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated net debt of VimpelCom USD mln 2Q12 1Q13 2Q13 Net debt 23,067 22,861 22,622 C ash and cash equivalents 2,883 5,564 4,551 Long - term and short-term deposits 609 190 213 Gross debt 26,559 28,615 27,386 © VimpelCom Ltd 2013 Interest accrued related t