VEON Ltd. ORD · RUS:VEON-RX

VEON Ltd. ORD — VimpelCom — Q3 2012 Earnings Presentation

27 slides from VEON Ltd. ORD's earnings presentation, Nov 14, 2012

  1. Slide 1: 3Q 2012 Presentation

    3Q 2012 © VimpelCom Ltd 2012 Presentation Amsterdam, November 14th, 2012 Jo Lunder - CEO Henk van Dalen - CFO 1

  2. 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 plans to hold its annual shareholder meeting, as well as the Comp

  3. Slide 3: VimpelCom continues to deliver on its strategy with profitable organic growth in 3Q12

    VimpelCom continues to deliver on its strategy with profitable organic growth in 3Q12 Revenues* EBITDA* EBITDA margin* Total mobile subscriber (USD billion) (USD billion) (%) Base* (million) 5.7 2.5 44.0 212 © VimpelCom Ltd 2012 (+3% organic)** (+8% organic)** (+1.8 p.p.) (+7%) Net income* Net cash

  4. Slide 4: Key Developments

    Key Developments • AGM to be held on December 21, 2012, subject to removal of injunction relating to FAS claim • Negotiations with Algerian authorities continuing • OTH raising its voting stake in Canada to 65% © VimpelCom Ltd 2012 • Analyst & Investor Day on January 16, 2013 4

  5. Slide 5: Business Units Performance

    Business Units Performance © VimpelCom Ltd 2012 5

  6. Slide 6: Russia Performance 3Q12: Positive operational development continued

    Russia Performance 3Q12: Positive operational development continued Revenues EBITDA and EBITDA Margin CAPEX* (RUB billion) (RUB billion) (RUB billion) +7% YoY +16% YoY 59.8 50.9 71.0 70.3 74.5 30.3 32.2 69.6 67.0 27.9 27.7 12.6 26.4 22% 11.5 12.0 11.4 12.3 25.6 18% 40.0% 41.3% 43.1% 43.2% © VimpelCo

  7. Slide 7: Italy Performance 3Q12: Continued relative outperformance

    Italy Performance 3Q12: Continued relative outperformance Revenues EBITDA and EBITDA Margin CAPEX* (EUR million) (EUR million) (EUR billion) -5% YoY -5% YoY Excluding MTR stable YoY 1.0 1.0 1,397 1,424 565 533 537 1,346 1,383 1,329 524 487 19% 387 18% 0.6 371 363 368 370 127 131 132 140 68 16% 40.5%

  8. Slide 8: Africa & Asia Performance 3Q12: Strong subscriber growth

    Africa & Asia* Performance 3Q12: Strong subscriber growth Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) -6% YoY -2% YoY Organic +5% YoY Organic +6% YoY 720 19% 598 466 16% 957 922 927 953 434 424 424 904 321 7% 45.4% 45.7% 48.9% 46.9% © VimpelCom Ltd 2012 34.8%

  9. Slide 9: Ukraine Performance 3Q12: Improved migration to bundled offerings

    Ukraine Performance 3Q12: Improved migration to bundled offerings Revenues EBITDA and EBITDA Margin CAPEX* (UAH billion) (UAH billion) (UAH billion) +4% YoY -1% YoY 3.5 3.6 1.9 1.8 2.3 3.4 3.2 1.7 1.6 1.6 3.0 2.0 Thousands 0.3 0.3 0.3 0.3 0.2 17% 1.2 15% © VimpelCom Ltd 2012 53.7% 50.3% 51.1% 50.2%

  10. Slide 10: CIS Performance 3Q12: Profitable growth

    CIS* Performance 3Q12: Profitable growth Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) +11% YoY +18% YoY 626 Organic +17% YoY Organic +28% YoY 478 497 430 419 411 234 378 38 44 39 198 39% 39 171 182 36 161 255 29% © VimpelCom Ltd 2012 440 46.0% 40.8% 42.5% 44.3%

  11. Slide 11: Financial Highlights

    Financial Highlights © VimpelCom Ltd 2012 Henk van Dalen CFO 11

  12. Slide 12: 3Q12 Financial Performance: Strong organic growth

    3Q12 Financial Performance: Strong organic growth GROUP BUSINESS UNITS (USD million) 3Q12 3Q11 YoY Revenue EBITDA Revenues 5,747 6,096 -6% FX and FX and Organic Reported Organic Reported EBITDA 2,530 2,572 -2% others others Depreciation/ Russia 7% -10% -3% 16% -11% 5% Amortization/ (1,275) (1,496) -

  13. 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 3Q 2012 (USD million) Sept 30, 2012 26,559 (3,492) 3,956 26,637 (USD million) 967 (72) (2,531) 23,067 475 362 170 243 22,681 Cash, Cash Equivalents and deposits 3,956 Total Assets 53,490

  14. Slide 14: Well Balanced Debt Composition and Maturity Profile

    Well Balanced Debt Composition and Maturity Profile Group Debt Maturity Schedule per September 2012 9.0 Wind OTH 5.5 VimpelCom / OJSC © VimpelCom Ltd 2012 3.1 2.3 2.0 1.6 1.5 1.0 0.6 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Other information Debt Composition by Currency Actual During 3

  15. Slide 15: Simplified legal / financing structure per 30-Sep-12

    Simplified legal / financing structure per 30-Sep-12 VimpelCom Group VimpelCom Ltd. VIP USD 2.2 bn OJSC Group USD 9.4 bn VimpelCom Wind Group USD 14.0 bn Amsterdam B.V. OTH Group USD 1.0 bn Gross debt USD 26.6 bn VimpelCom Holdings VimpelCom Amsterdam WIND Telecom B.V. Finance B.V. S.p.A. I © Vimpel

  16. Slide 16: Conclusion

    Conclusion © VimpelCom Ltd 2012 Jo Lunder CEO 16

  17. Slide 17: Continuing to deliver on Value Agenda 2012-2014

    Continuing to deliver on Value Agenda 2012-2014 • Strong organic growth YoY in 2012: 1Q12 2Q12 3Q12 YTD 3Q12 Revenues +6% +4% +3% +5% Revenues (excl. MTR cut in Italy) +7% +6% +5% +6% © VimpelCom Ltd 2012 EBITDA +5% +8% +8% +7% EBITDA (excl. MTR cut in Italy) +6% +9% +9% +8% EBITDA margin -0.6 pp +2

  18. Slide 18: Analyst & Investor Day 2013

    Analyst & Investor Day 2013 © VimpelCom Ltd 2012 The Savoy, London January 16th, 2013 13.00h – 17.00h

  19. Slide 19: © VimpelCom Ltd 2012

    —) VimpelCom 19 ZT0Z py] WojedwuiA

  20. Slide 20: Thank you!

    © VimpelCom Ltd 2012 20 Thank you!

  21. Slide 21: 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 2012 E: Investor_Relations@vimpelcom.com www.vimpelcom.com 21

  22. Slide 22: Appendices

    © VimpelCom Ltd 2012 22 Appendices

  23. Slide 23: Operating Highlights Russia

    Operating Highlights Russia Mobile subscribers ARPU and MOU (million) (RUB) (min) -1% YoY +5% YoY ARPU +12% YoY MOU 56.8 57.2 352 334 327 314 336 55.7 56.2 55.6 282 279 259 254 251 © VimpelCom Ltd 2012 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12  ARPU  MOU Broadband subscribers Broadband ARP

  24. Slide 24: Operating Highlights Italy

    Operating Highlights Italy Mobile subscribers ARPU and MOU (million) (EUR) (min) +3% YoY ARPU -11% YoY MOU +3% YoY 21.5 15.7 15.2 14.7 15.0 14.0 21.2 21.1 205 205 209 202 21.0 196 © VimpelCom Ltd 2012 20.8 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12  ARPU  MOU Broadband subscribers* Broadban

  25. Slide 25: FOREX Development

    FOREX Development Average rates Closing rates Currency YTD 12 YTD 11 YoY YTD 12 FY 11 Delta RUB 31.17 28.77 -7.7% 30.92 32.20 4.1% EUR 0.78 0.71 -9.1% 0.78 0.77 -1.0% DZD 77.31 74.52 -3.6% 79.42 75.33 -5.2% © VimpelCom Ltd 2012 PKR 92.43 85.18 -7.8% 94.83 89.95 -5.1% BDT 82.09 69.75 -15.0% 81.64 81.

  26. Slide 26: Reconciliation Tables: consolidated EBITDA

    Reconciliation Tables Reconciliation of consolidated EBITDA of VimpelCom USD million 3Q12 3Q11 Unaudited pro forma EBITDA 2,530 2,572 Depreciation (721) (796) Amortization (507) (667) © VimpelCom Ltd 2012 Loss on disposals of non-current assets (47) (33) EBIT 1,255 1,076 Financial Income and Expense

  27. Slide 27: Reconciliation Tables: consolidated net debt

    Reconciliation Tables Reconciliation of consolidated net debt of VimpelCom USD millions 3Q12 2Q12 Net debt 22,681 23,067 Cash and cash equivalents 3,241 2,883 Long - term and short-term deposits 715 609 © VimpelCom Ltd 2012 Gross debt 26,637 26,559 Interest accrued related to financial liabilities 4

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