30 slides from VEON Ltd. ORD's earnings presentation, Mar 6, 2013
Slide 1: 4Q 2012 Presentation
4Q 2012 © VimpelCom Ltd 2013 Presentation Amsterdam, March 6, 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 strategy, development plans and anticipated performance, includin
Slide 3: Continued delivery on strategy
Continued delivery on strategy Profitable growth and strong cash flows in 4Q12 Revenues* EBITDA* EBITDA margin* Total mobile subscriber (USD billion) (USD billion) (%) Base* (million) 6.0 2.4 41.1 214 © VimpelCom Ltd 2013 (+3% organic)** (+13% organic)** (+3.3 p.p.) (+5%) Net income* Net cash from o
Slide 4: Successful execution of the Value Agenda in 2012
Successful execution of the Value Agenda in 2012 Revenues* EBITDA* EBITDA margin* (USD billion) (USD billion) (%) 23.1 9.8 42.4 © VimpelCom Ltd 2013 (+4% organic)** (+8% organic)** (+1.8 p.p.) Net income* Net cash from operating Highlights: (USD billion) activities (USD billion) • Revenue and EBITDA
Slide 5: Key Developments
Key Developments • Enhanced Value Agenda 2013-2015 announced; medium-term objectives: ► Revenue and EBITDA CAGR around mid-single digit ► Net Debt/EBITDA below 2x in 2015 © VimpelCom Ltd 2013 ► CAPEX*/Revenues below 15% in 2015 • Successful issuance of USD 2.0 billion Eurobonds for debt refinancing
Slide 6: Business Units Performance
Business Units Performance © VimpelCom Ltd 2013 6
Slide 7: Russia Performance 4Q12: Positive operational development continued
Russia Performance 4Q12: Positive operational development continued Revenues EBITDA and EBITDA Margin CAPEX* (RUB billion) (RUB billion) (RUB billion) +4% YoY +15% YoY 59.8 50.7 74.5 73.6 30.3 32.2 30.4 71.0 67.0 70.3 27.7 26.4 22% 12.0 12.3 12.6 12.1 11.4 43.1% 43.2% 18% 41.3% 41.3% 37.1% © VimpelC
Slide 8: Italy Performance 4Q12: Continued relative outperformance
Italy Performance 4Q12: Continued relative outperformance Revenues EBITDA and EBITDA Margin CAPEX* (EUR million) (EUR million) (EUR billion) -4% YoY -4% YoY Excluding MTR +2% YoY Excluding MTR +2% YoY 1.0 0.9 1,424 533 524 537 514 1,346 1,383 1,329 1,369 487 387 363 368 370 369 18% 131 78 17% 132 14
Slide 9: Africa & Asia Performance 4Q12: Strong subscriber growth
Africa & Asia* Performance 4Q12: Strong subscriber growth Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) +2% YoY +33% YoY 847 Organic +11% YoY Organic +36% YoY 466 424 424 426 922 927 953 904 937 321 23% 400 48.9% 46.9% 45.7% 45.5% 11% © VimpelCom Ltd 2013 34.8%
Slide 10: Ukraine Performance 4Q12: Successful migration to bundled offerings
Ukraine Performance 4Q12: Successful migration to bundled offerings Revenues EBITDA and EBITDA Margin CAPEX* (UAH billion) (UAH billion) (UAH billion) +4% YoY +9% YoY 3.6 1.7 1.8 1.8 2.3 3.4 3.2 3.5 1.6 1.6 3.0 1.8 Thousands 0.3 0.3 0.3 0.2 0.3 52.5% 17% 51.1% 51.2% © VimpelCom Ltd 2013 3.3 50.3% 50
Slide 11: CIS Performance 4Q12: Profitable growth
CIS* Performance 4Q12: Profitable growth Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) +16% YoY +37% YoY Organic +21% YoY Organic +45% YoY 626 478 488 234 235 419 411 38 38 384 378 39 39 182 36 171 161 39% 49.0% 48.1% © VimpelCom Ltd 2013 440 449 44.3% 22% 380 3
Slide 12: Financial Highlights
Financial Highlights © VimpelCom Ltd 2013 Henk van Dalen CFO 12
Slide 13: 4Q12 Financial Performance: Strong profitable growth
4Q12 Financial Performance: Strong profitable growth GROUP BUSINESS UNITS (USD million) 4Q12 4Q11 YoY Revenue EBITDA Revenues 5,950 5,889 1% FX and FX and Organic Reported Organic Reported EBITDA 2,446 2,227 10% others others Depreciation/ Russia 4% 0% 4% 15% 1% 16% Amortization/ (1,737) (2,013) -14
Slide 14: FY12 Financial Performance in line with Value Agenda
FY12 Financial Performance in line with Value Agenda GROUP BUSINESS UNITS (USD million) FY12 FY11* YoY Revenue EBITDA Revenues 23,061 23,477 -2% FX and FX and Organic Reported Organic Reported EBITDA 9,768 9,525 3% others others Depreciation/ Russia 7% -6% 1% 13% -6% 7% Amortization/ (5,597) (6,350)
Slide 15: Main Non-Cash Items in EBIT and Net Income
Main Non-Cash Items in EBIT and Net Income (USD million) 4Q12 4Q11 FY 12 FY 11 EBIT Impairment Canada (328) - (328) - © VimpelCom Ltd 2013 Impairment Vietnam and Cambodia - (527) - (527) HR provision and write-off in Russia - (30) - (30) Declining amortization schedule applied to intangible assets (
Slide 16: Debt, Cash and Ratios: Solid financial position
Debt, Cash and Ratios: Solid financial position Key Components Consolidated Cash and Net Debt Development Actual 4Q 2012 (USD million) Dec 31, 2012 26,637 3,956 5,016 26,987 (USD million) 324 1,139 (605) (2,446) 22,681 339 447 92 21,971 Cash, Cash Equivalents and deposits 5,016 Total Assets 55,360 ©
Slide 17: Well Balanced Debt Composition and Maturity Profile
Well Balanced Debt Composition and Maturity Profile Group Debt Maturity Schedule per December 2012 New Eurobonds of USD 2.0 billion 8.9 Proceeds Eurobonds used for repayment Wind 6.0 OTH 0.4 Vimpelcom / OJSC © VimpelCom Ltd 2013 5.6 3.2 2.6 2.4 1.8 1.5 1.0 1.0 0.6 2013 2014 2015 2016 2017 2018 2019
Slide 18: Conclusion
Conclusion © VimpelCom Ltd 2013 Jo Lunder CEO 18
Slide 19: Delivering on the Value Agenda in 2012
Delivering on the Value Agenda in 2012 • Strong profitable organic growth YoY : 1Q12 2Q12 3Q12 4Q12 FY12 Revenues +6% +4% +3% +3% +4% Revenues (excl. MTR cut in Italy) +7% +6% +5% +5% +6% © VimpelCom Ltd 2013 EBITDA +5% +8% +8% +13% +8% EBITDA (excl. MTR cut in Italy) +6% +9% +9% +14 % +10% EBITDA m
Slide 20: © VimpelCom Ltd 2013
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Slide 21: Thank you!
© VimpelCom Ltd 2013 21 Thank you!
Slide 22: 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 2013 E: Investor_Relations@vimpelcom.com www.vimpelcom.com 22
Slide 23: Appendices
© VimpelCom Ltd 2013 23 Appendices
Slide 24: Operating Highlights Russia
Operating Highlights Russia Mobile subscribers ARPU and MOU (million) (RUB) (min) -2% YoY +5% YoY ARPU +12% YoY MOU 57.2 352 56.2 56.1 336 343 55.6 55.7 327 314 282 290 279 259 254 © VimpelCom Ltd 2013 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 ARPU MOU Broadband subscribers Broadband ARP
Slide 25: Operating Highlights Italy
Operating Highlights Italy Mobile subscribers ARPU and MOU (million) (EUR) (min) +3% YoY ARPU -10% YoY MOU +3% YoY 15.2 14.7 15.0 14.0 13.7 21.6 21.5 21.2 205 205 209 202 212 21.1 © VimpelCom Ltd 2013 21.0 4Q11 1Q12 2Q12 3Q12 4Q12 4Q11 1Q12 2Q12 3Q12 4Q12 ARPU MOU Broadband subscribers* Broadban
Slide 26: Simplified legal / financing structure per 31-Dec-12
Simplified legal / financing structure per 31-Dec-12 VimpelCom Group VimpelCom Ltd. VIP USD 2.2 bn OJSC Group USD 9.8 bn VimpelCom Wind Group USD 14.0 bn Amsterdam B.V. OTH Group USD 1.0 bn Gross debt USD 27.0 bn VimpelCom Holdings VimpelCom Amsterdam WIND Telecom B.V. Finance B.V. S.p.A. I © Vimpel
Slide 27: FOREX Development
FOREX Development Average rates Closing rates Currency FY 12 FY 11 YoY FY 12 FY 11 Delta RUB 31.09 29.39 -5.5% 30.37 32.20 6.0% EUR 0.78 0.72 -7.5% 0.76 0.77 1.6% DZD 77.84 72.93 -6.3% 78.94 75.33 -4.6% © VimpelCom Ltd 2013 PKR 93.40 86.33 -7.6% 97.14 89.95 -7.4% BDT 81.84 74.07 -9.5% 79.78 81.83 2.
Slide 28: Reconciliation Tables: EBITDA (pro-forma)
Reconciliation Tables Reconciliation of consolidated EBITDA of VimpelCom (pro-forma) USD mln 4Q12 4Q11 YTD12 YTD11 (unaudited) (unaudited) (audited) (unaudited) EBITDA 2,446 2,227 9,768 9,525 Depreciation (758) (790) (2,926) (3,094) © VimpelCom Ltd 2013 Amortization (519) (664) (2,080) (2,663) Impai
Slide 29: Reconciliation Tables: EBITDA (Actual)
Reconciliation Tables Reconciliation of consolidated EBITDA of VimpelCom (Actual) USD mln 4Q12 4Q11 YTD12 YTD11 (unaudited) (unaudited) (audited) (unaudited) EBITDA 2,446 2,227 9,768 8,256 Depreciation (758) (790) (2,926) (2,726) © VimpelCom Ltd 2013 Amortization (519) (664) (2,080) (2,059) Impaimen
Slide 30: Reconciliation Tables: Net debt
Reconciliation Tables Reconciliation of consolidated net debt of VimpelCom USD millions 4Q12 3Q12 Net debt 21,971 22,681 Cash and cash equivalents 4,949 3,241 Long - term and short-term deposits 67 715 © VimpelCom Ltd 2013 Gross debt 26,987 26,637 Interest accrued related to financial liabilities 53