28 slides from VEON Ltd. ORD's earnings presentation, Nov 14, 2011
Slide 1: 3Q 2011 Presentation
3Q 2011 P Presentation t ti Jo Lunder, CEO Amsterdam, November 14, 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 Act of 1934. These statements relate to the p y strategy, Company's gy, development p plans and anticipated p p perform
Slide 3: Key messages
Key messages • Strong mobile subscribers growth, surpassing 200 million mark • Double digit g top p line improvements p • Organic growth in all Business Units • EBITDA margin declined due to performance in Russia, next step is converting top line growth into EBITDA growth • Integration of Wind Telec
Slide 4: Key developments
Key developments • Announced Value Agenda for 2012-2014 focusing on ► Profitable Growth ► Operational Excellence ► Capital Efficiency • Awarded 4G spectrum in Italy • Algeria risk and value sharing mechanism allowed to expire • OTH demerger d process ongoing i • Secured NPV USD 1.9 billion from inte
Slide 5: Key results
Key results • Mobile subscribers surpassed 200 million in October • Total ota fixed-line ed e subscribers subsc be s of o 5 million o • Revenues USD 6.1 bn, up 10% YoY* driven by 5% organic growth and favorable forex • EBITDA up 4% YoY* to USD 2.5 bn • Net income decreased to USD 104 million mostly
Slide 6: Financial Highlights
Financial Highlights Henk van Dalen, CFO 6 © VimpelCom Ltd 2011
Slide 7: 3Q11 Financial Highlights
3Q11 Financial Highlights Consolidated financial highlights (Actual) (USD million) Actual 3Q 11 3Q 10 YoY Net operating revenues 6,093 2,824 116% EBITDA 2,535 1,358 87% EBITDA margin 41.6% 48.1% EBIT 1 266 1,266 812 56% Net income to VimpelCom Ltd. 104 496 -79% EPS, basic (USD) 0.07 0.39 -82% Capita
Slide 8: 3Q11 Pro Forma Financial Performance
3Q11 Pro Forma Financial Performance Pro forma Revenue EBITDA (USD million) Q3 11 Q3 10 Business Organic FX Organic FX Units Revenues 6 093 6,093 5 519 5,519 Russia 8% 6% -8% 5% EBITDA 2,535 2,435 Depreciation/ Ukraine 4% -1% -1% -1% Amortization/ (1,269) (1,138) Other E Europe & NA 2% 9% 1% 8% EBIT
Slide 9: Debt, Cash and Ratios
Debt, Cash and Ratios Consolidated Cash and Net Debt Development Key Components Actual 3Q 2011 (USD million) (3,289) September 30, 3,743 (USD million) 2011 ( (1,857) ) 1,160 (1,146) Cash and Cash Equivalents 3,443 Total Assets 55,999 27,393 Gross Debt 26,004 24,104 26,004 -Short-term 1,600 22,261 -L
Slide 10: Debt Composition and Maturity Profile
Debt Composition and Maturity Profile Group Debt Maturity Schedule as of September 30, 2011 Actual (USD million) 9 111 Other VimpelCom / OJSC WIND 4 913 2 239 2 066 1 586 1 696 1 500 1 243 1 000 557 0 0 Q4 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Debt Composition by Currency
Slide 11: Business Units Performance
Business Units P f Performance Khaled Bichara, President and COO 11 © VimpelCom Ltd 2011
Slide 12: BU Russia: Financial Highlights
BU Russia: Financial Highlights Revenues EBITDA and EBITDA Margin (RUR billion) (RUR billion) +8% YoY -8% YoY 69.6 30.2 64.3 64.5 65.2 28.0 27.1 27.9 60.4 25.4 10.8 11.5 10.5 10.7 10.3 47.0% 43.4% 42.1% 41.5% 58 1 58.1 40 0% 40.0% 53 8 53.8 53 8 53.8 50.1 54 4 54.4 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 1
Slide 13: BU Russia: Operating Highlights
BU Russia: Operating Highlights Mobile subscribers Mobile ARPU and MOU (million) (RUR) (min) +10% YoY - 2% YoY ARPU +13% YoY MOU 56.8 343 334 333 327 55.3 308 53.0 244 251 222 228 218 51.6 52.0 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q311 ARPU MOU Broadband subscribers Broadband AR
Slide 14: BU Russia: Addressing current situation
BU Russia: Addressing current situation Current situation Actions Revenues • At the th beginning b i i off 2011 VIP was premium i priced i d vs competitors • On net traffic stimulation • This caused VIP to reposition its focus on closing the • Active promotions in small screen data price gap in 2011
Slide 15: BU Europe & NA: Financial Highlights Italy
BU Europe & NA: Financial Highlights Italy Revenues* EBITDA* and EBITDA Margin (EUR million) (EUR million) Total Revenues +2% YoY +1.4% YoY Revenue excl. Mobile incoming + 5% YoY 557 534 565 496 526 341 408 369 370 371 152 127 40.9% 40 5% 40.5% 1038 982 1029 37.0% 36.8% 3 6% 37.6% 869 899 Q3 10 Q4 1
Slide 16: BU Europe & NA: Operating Highlights Italy
BU Europe & NA: Operating Highlights Italy Mobile subscribers ARPU and MOU (million) (EUR) (min) +6% YoY -7% YoY 20.8 20.6 16.8 16.5 15.7 15.4 16.0 20.3 19.9 191 187 198 196 183 19.6 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 ARPU MOU Broadband subscribers* Fixed Broadband ARPU
Slide 17: BU Africa & Asia: Financial and Operating Highlights
BU Africa & Asia: Financial and Operating Highlights Revenues EBITDA and EBITDA Margin (USD million) (USD million) +5% YoY +13% YoY 949 957 434 910 895 891 385 404 407 337 45.3% 42.9% 45.4% 42.3% 37 7% 37.7% Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 EBITDA EBITDA Margin CAPEX H
Slide 18: BU Ukraine: Financial and Operating Highlights
BU Ukraine: Financial and Operating Highlights Revenues EBITDA and EBITDA Margin (UAH billion) (UAH billion) +4% YoY -1% YoY 1.9 1.9 1.8 3.5 1.7 3.4 1.6 3.3 3.2 56.0% 53.8% 54.0% 54.8% 53.7% 3.0 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 EBITDA EBITDA Margin CAPEX Highlights: (U
Slide 19: BU CIS: Financial and Operating Highlights
BU CIS*: Financial and Operating Highlights Revenues EBITDA and EBITDA Margin (USD million) (USD million) +19% YoY +23% YoY 430 389 198 362 362 351 175 44 160 155 159 41 41 41 41 44.4% 45.3% 45.0% 46.0% 42.7% 321 321 310 348 386 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Mobile
Slide 20: Conclusion
Conclusion • Strong mobile subscribers growth, surpassing 200 million mark • Double digit top line improvements • Organic growth in all Business Units • Data growth across all subsidiaries • Integration of Wind Telecom on track to be completed by year-end • EBITDA declined due to performance in Russ
Slide 21: Q&A
Q&A Amsterdam, November 14, 2011
Slide 22: Thank you
Thank you Amsterdam, November 14, 2011
Slide 23: Contact Information
Contact Information Please find herewith all contact details of VimpelCom’s Investor Relations team: Gerbrand Nijman Investor_Relations@vimpelcom.com Tel: +31 20 79 77 200 (Amsterdam) Marine Babayan Russia, Ukraine and CIS Investor_Relations@vimpelcom.com T l +7 Tel: 7 495 974 5888 (Moscow) (M ) Noh
Slide 24: Appendices
Appendices Amsterdam, November 14, 2011
Slide 25: FOREX Development
FOREX Development Average rates Closing rates Currency YTD11 YTD10 YoY YTD11 FY2010 Delta RUR 5.1% -4.4% 28.77 30.25 31.88 30.48 EUR -6.4% -1.0% 1.41 1.32 1.35 1.34 DZD 2.7% 0.2% 72.55 74.52 74.17 74.29 PKR -0.8% -2.1% 85.88 85.18 87.48 85.67 BDT -4.6% 4 6% -6.1% 6 1% 73.10 69.75 75.17 70.60 VND 20,
Slide 26: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated EBITDA of VimpelCom USD mln Pro forma 3Q11 3Q 10 YTD 2011 YTD 2010 Unaudited pro forma EBITDA 2,535 2,435 7,163 7,018 Adjustment for certain non-operating items 5 19 15 25 Depreciation p ( (930) ) ( (742) ) ( , (2,636) ) ( , (2,216)) Amortization
Slide 27: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated EBITDA of VimpelCom (Continued) USD mln Actual 3Q11 3Q 10 YTD 2011 YTD 2010 Unaudited EBITDA 2,535 1,358 5,926 3,659 Adjustment for certain non-operating items 5 19 15 22 Depreciation (930) (408) (2,235) (1,137) Amortization (339) (138) (731) (321
Slide 28: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated net debt of VimpelCom USD mln 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 Net debt 3,970 3 970 4,740 4 740 4,840 4 840 24,104 24 104 22,261 22 261 Cash and cash equivalents 2,467 885 1,858 3,190 3,443 Long - term and short-term deposits 56 36 592 99 153 Fair va