20 slides from VEON Ltd. ORD's earnings presentation, Mar 29, 2011
Slide 1: 4Q10 and FY10 Presentation
VimpelCom p Ltd 4Q10 and FY10 Presentation Amsterdam March 29th, 2011 1 © VimpelCom Ltd 2011
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 g Act of 1934. These statements relate to the Company's strategy, development plans and anticipated performance. The fo
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 4Q10 results • Net operating revenues increased by 22.0% y-o-y to $2.8 billion • Adjusted OIBDA* reached $1.3 billion (up 15.0% y-o-y); consolidated OIBDA margin of 44.5% • Net income attributable to VimpelCom Ltd was $461.2 million (up 62.7% y-o-y) • Net cash from operating act
Slide 5: Group 4Q10 Financial Highlights
Group 4Q10 Financial Highlights Revenue*, USD mln OIBDA**, USD mln +22.0% y-o-y +15.0% y-o-y -0.3% q q-o-q q -9.2% q q-o-q q -52 362 -37 404 160 216 2,816 2,824 2 309 2, 1 378 1,378 2,102 1,252 1, 088 913 Russia Ukraine CIS 4Q10 SEA and VimpelComVimpelComVimpelCom Russia Ukraine CIS 4Q10 SEA and Vim
Slide 6: Group FY10 Financial Highlights
Group FY10 Financial Highlights Revenue*, USD mln OIBDA**, USD mln +20.8% y-o-y +15.4% y-o-y -188 1,354 -114 638 1,185 633 10,513 8,162 8,703 4,932 4,273 3,775 Russia FY10 Ukraine FY10 CIS FY10 SEA and VimpelCom VimpelCom Russia FY10 Ukraine FY10 CIS FY10 SEA and p VimpelCom VimpelCom p eliminations
Slide 7: Group Financial Position
Group Financial Position Cash Flow Dynamics, USD mln Key Ratios and Indicators ($ mln) Dec 31, Dec 31, Dec 31, 2010 2009 2008 Cash and Cash Equivalents 885 1,447 915 Total Assets 19 928 19,928 14 733 14,733 15 725 15,725 4,860 4,932 Total Debt 5,661 7,353 8,443 4,272 -Short-term 1,162 1,813 1,909 -L
Slide 8: Consolidated Cash and Debt Development
Consolidated Cash and Debt Development 2010 Development, USD million Net cash Cash paid for Cash balance provided by acquisitions of Kyivstar as Net debt as of operating Cash paid for net of cash of April 21, Purchase of Dividends to Other Net debt as of Dec 31, 2009 activities capex acquired 2010 o
Slide 9: Group Debt Profile as of December 31, 2010
Group Debt Profile as of December 31, 2010 Debt Maturity Schedule, USD mln $5 661 mln $5, l off ttotal t lddebt bt 1,490 1,162 1,000 818 611 477 462 244 361 80 118 80 0 1Q11 2Q11 3Q11 4Q11 2011 2012 2013 2014 2015 2016 2017 2018 - paid - due in 2011 - due after 2011 Debt Composition p by y Currency
Slide 10: Dividends for 2010
Dividends for 2010 Dividend p policy: y to distribute at least 50% of Free Cash Flow* from Russian operations and Kyivstar • Interim dividend of $600 million or $0.46 per ADS, declared and paid in December 2010 • Interim dividend of $250 million or $0.19 per ADS, declared and paid in March 2011 • Fi
Slide 11: Russia: Operating Highlights
Russia: Operating Highlights Mobile subscriptions, mln ARPU and MOU +2.2% y-o-y +0.8% q-o-q 343 300. 0 332 330 333 317 308 222 228 214 218 219 204 51.0 50.9 51.3 50.9 51.6 52.0 150. 0 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 ARPU (RUR) MOU (min) ( i ) Broadband subscri
Slide 12: Russia: Financial Highlights
Russia: Financial Highlights Revenue, RUR bn OIBDA (RUR bn) and OIBDA Margin +9.7% y-o-y +0.3% y-o-y +0.4% q-o-q -7.3% q-o-q 61.2 58.8 64.3 64.5 57.4 61.7 10 0 . 0 % 9.9 9.9 10.5 10.7 31.2 9.9 30.2 90 . 0 % 9.5 28.0 29.1 28.0 27.2 80 . 0 % 70 . 0 % 50.9% 47.5% 47.5% 47.2% 47.0% 60 . 0 % 51 3 51.3 48
Slide 13: Ukraine (pro-forma): Operating Highlights
Ukraine (pro-forma): Operating Highlights Mobile subscriptions, mln ARPU and MOU +1.5% y-o-y -2.7% q q-o-q q 40.8 42.6 40.0 39.7 40.3 600. 0 36.5 457 427 433 406 379 450. 0 25 1 25.1 331 24 5 24.5 24 0 24.0 23 9 23.9 24 1 24.1 24 4 24.4 300. 0 150. 0 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 3Q09 4Q09 1Q10 2Q10
Slide 14: Ukraine (pro-forma): Financial Highlights
Ukraine (pro-forma): Financial Highlights Revenue, UAH bn OIBDA (UAH bn) and OIBDA Margin +0.7% y-o-y -5.0% q-o-q +4.0% y-o-y -10.7% q q-o-q q 1.9 3.4 1.7 1.7 8 0 . 0 % 3.2 3.2 3.2 1.6 1.6 3.0 7 5 . 0 % 2.9 7 0 . 0 % 1.4 56.8% 6 5 . 0 % 51.8% 49.4% 54.2% 53.4% 50.2% 6 0 . 0 % 5 5 . 0 % 5 0 . 0 % 4 5
Slide 15: CIS Operations
CIS Operations* Revenue, USD mln OIBDA (USD mln)and OIBDA Margin +23.3% y-o-y +10.9% y-o-y +0.3% q-o-q -8.9% q-o-q 362 362 176 294 295 336 162 160 8 0 . 0 % 297 155 41 41 145 140 7 5 . 0 % 39 7 0 . 0 % 37 35 34 6 5 . 0 % 52.1% 6 0 . 0 % 5 5 . 0 % 49.2% 47 4% 47.4% 48 2% 48.2% 48.8% 321 321 44.3% 297
Slide 16: South-East Asia
South-East Asia Vietnam • 57% population coverage in a country with 89.5 mln people • Operations in the 51 most populated provinces • Development of alternative sales channels Cambodia • 80% population coverage in a country with 15 mln people • Active subscriber base above 0.65 mln • 38% q-o-q reven
Slide 17: Summary
Summary • Solid financial performance by the Group • Focus on growth acceleration in Russia • Ukraine Uk i d delivers li on promises i with ith market k t share h recovery and d synergies ahead of expectations • Taking business to the next level through Wind Telecom deal 17 © VimpelCom Ltd 2011
Slide 18: APPENDICES
APPENDICES 18 © VimpelCom Ltd 2011
Slide 19: FOREX Development
FOREX Development 1Q10 2Q10 3Q10 4Q10 Opening Average Closing Average Closing Average Closing Average Closing Currency rate rate rate rate rate rate rate rate rate RUR 30.19 29.89 29.36 30.24 31.20 30.62 30.40 30.71 30.48 UAH 7.99 7.99 7.93 7.92 7.91 7.90 7.91 7.93 7.96 KZT 148.46 8 6 147.68 68 147.
Slide 20: Map of Operations
Map of Operations Population: 45.3 mln. Population: 4.2 mln. URS acquired: Nov ’05 Acquired: Jul. 2006 Kyivstar: Apr ‘10 R ssia Russia Penetration: 110% Penetration: 105% GDP* 6,700 GDP* 4,800 Population: 140.1 mln. Penetration: 157% Population: 3.0 mln. GDP*: 15,900 Acquired: Nov. 2006 Penetration: