23 slides from VEON Ltd. ORD's earnings presentation, Jun 1, 2011
Slide 1: VimpelCom Ltd 1Q11 Presentation
VimpelCom p Ltd 1Q11 Presentation Amsterdam June 1st, 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 Company's strategy, development plans and anticipated performance. The forw
Slide 3: Participants
Participants Alexander Izosimov Presentation Chief Executive Officer Henk van Dalen Chief Financial Officer will be joined by: Q&A Session Q Khaled Bichara President and Chief Operating Officer Elena Shmatova Head of Russian operations p Dmitry Kromsky Head of the CIS operations Artem Nitz Acting CF
Slide 4: Introduction
Introduction • The merger of VimpelCom Ltd. with Wind Telecom was completed on April 15, 2011. Therefore actual 1Q11 results presented today do not include the merged g entities of Wind Telecom • We intend to publish a full set of pro-forma data per quarter for 2010 and 1Q11 as well as FY10 FY10, in
Slide 5: Operating and Financial Highlights 1Q11
Operating and Financial Highlights 1Q11 Actual results Vimpelcom Ltd • Net operating revenues reached US$2.7 billion (up 23% y-o-y) • OIBDA reached US$1.2 billion (up 16% y-o-y) • Net cash from operating activities of US$1.0 billion (up 25% y-o-y) • Presence in SEA strengthened through acquisition i
Slide 6: 1Q11 Financial Highlights
1Q11 Financial Highlights Revenue*, USD mln OIBDA, USD mln +22.9% y-o-y +16.2% y-o-y -2.6% q-o-q -3.4% q-o-q 0 . 8 0 . 7 5 1 ,2 62 1 ,3 78 1 ,2 52 0 . 7 1 ,2 10 1 ,0 41 0 . 6 5 2,642 , 2,824 2,816 2,743 0 . 6 2,231 0 . 5 5 46 7% 46.7% 47 8% 47.8% 48 8% 48.8% 0 . 5 44.5% 44.1% 0 . 4 5 0 . 4 0 . 3 5 0
Slide 7: Financial Position
Financial Position Key Ratios and Indicators Consolidated Cash and Net Debt Development March 31, Dec 31, Sep 30, 1Q 2011, USD mln (USD mln) 2011 2010 2010 Cash and Cash 1,858 885 2,467 Equivalents 4,740 (994) 554 104 245 190 4,840 Total Assets 22,281 19,928 21,046 Total Debt 7 290 7,290 5 661 5,661
Slide 8: Group Debt Profile as of March 31, 2011
Group Debt Profile as of March 31, 2011 Debt Maturity Schedule, USD mln 1,538 $7 289 mln $7, l off ttotal t lddebt bt 366 1,152 1,111 1,000 1,000 511 872 493 275 102 102 124 1Q11 2Q11 3Q11 4Q11 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021 - paid - due in 2011 - due after 2011 Debt Composition b
Slide 9: Financial structure post-merger
Financial structure post-merger Below are selected preliminary results on a pro-forma* basis. The Company intends to provide a full set of pro forma data in early August. Revenues and OIBDA (preliminary pro forma) (USD billion) First Quarter 2011 Full Year 2010 Revenue 5.5 21.8 OIBDA 2.3 9.3 Debt (p
Slide 10: Dividend
Dividend Final dividend for 2010 of US$244 million Total dividend paid for 2010 was US$ 1.1 billion Dividend guidelines 2011 • Intention to pay a dividend that develops substantially in line with the development of operational performance • Barring unforeseen circumstances, the Company aims to pay o
Slide 11: Russia: Operating Highlights
Russia: Operating Highlights Mobile subscriptions, mln ARPU and MOU +3.4% y-o-y +1.9% q-o-q q q 343 300. 0 330 333 308 308 222 228 219 218 53 0 53.0 204 51.6 52.0 51.3 50.9 150. 0 1Q 10 2Q 10 3Q 10 4Q 10 1Q11 1Q 10 2Q 10 3Q 10 4Q 10 1Q11 ARPU (RUR) MOU (min) Broadband subscriptions, mln Broadband AR
Slide 12: Russia: Financial Highlights
Russia: Financial Highlights Revenue, RUR bn OIBDA (RUR bn) and OIBDA Margin +5.2% y-o-y -6.8% y-o-y -6.5% q-o-q -9.4% q-o-q 61.7 64.3 64.5 60.3 1 00 . 0 % 57.4 10.5 10.7 30.2 9 0 . 0 % 9.9 10.3 29.1 28.0 9.5 27.2 8 0 . 0 % 25.4 7 0 . 0 % 47.5% 47.2% 47.0% 6 0 . 0 % 53.8 53.8 43.4% 42.1% 47.9 51.8 5
Slide 13: Ukraine (pro-forma): Operating Highlights
Ukraine (pro-forma): Operating Highlights Mobile subscriptions, mln ARPU and MOU +2.1% y y-o-y y 0.0% q-o-q 42.6 39.7 40.3 36.5 37.7 457 466 427 433 406 25.1 24.4 24.4 23.9 24.1 1Q10 Q 2Q10 Q 3Q10 Q 4Q10 Q 1Q11 Q 1Q10 2Q10 3Q10 4Q10 1Q11 ARPU (UAH) MOU Fixed-line broadband subscriptions*, ‘000 Fixed
Slide 14: Ukraine (pro-forma): Financial Highlights
Ukraine (pro-forma): Financial Highlights Revenue, UAH bn OIBDA (UAH bn) and OIBDA Margin +4.4% y-o-y +15.0% y-o-y -6.8% q-o-q -5.1% q q-o-q q 1.9 3.4 8 0 . 0 % 1.7 1.7 1.6 3.2 7 5 . 0 % 3.1 3.0 7 0 . 0 % 1.4 2.9 6 5 . 0 % 56.8% 6 0 . 0 % 54.2% 53.4% 54.4% 5 5 . 0 % 49.4% 5 0 . 0 % 4 5 . 0 % 4 0 . 0
Slide 15: CIS Operations
CIS Operations* Revenue, USD mln OIBDA (USD mln)and OIBDA Margin +19.0% y-o-y +14.3% y-o-y -3.1% q-o-q -0.4% q-o-q 362 362 351 336 176 162 160 160 8 0 . 0 % 295 41 41 41 39 7 5 . 0 % 140 34 7 0 . 0 % 6 5 . 0 % 6 0 . 0 % 47 4% 47.4% 48 2% 48.2% 48 8% 48.8% 321 321 5 5 . 0 % 297 310 44.3% 45.5% 261 5
Slide 16: South-East Asia Operations
South-East Asia Operations • In total ~ 1.7 million mobile subscriptions • Networks in Vietnam covered approx. 57% of population, 51 out of 63 provinces. VimpelCom developed a more focused strategy with a comprehensive commercial re-launch re launch and with more focused investments in the network.
Slide 17: Summary
Summary VimpelCom Ltd 1Q11: • Solid financial performance p • Continued focus on improving market position in Russia y and synergies • Ukraine delivers market share recovery y g ahead of expectations p • Steady growth of revenues with healthy margins in CIS VimpelCom Ltd post-merger: • Taking busine
Slide 18: APPENDICES
APPENDICES 18 © VimpelCom Ltd 2011
Slide 19: 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) Russia, Ukraine and CIS Marine Babayan Investor_Relations@vimpelcom.com T l +7 Tel: 7 495 974 5888 (Moscow) (M ) Asi
Slide 20: Additional information: Wind Italy – Financial and Operating 1Q11 Results
Additional information: Wind Italy – Financial and Operating 1Q11 Results* • Total revenues reached €1,351 million (increased 4.3% y-o-y) • EBITDA increased 2.8% to €497 million • EBITDA margin of 36.8% • EBIT reached €264 million (increased 9.7% y-o-y) • Net financial indebtedness declined to €8,26
Slide 21: Additional information: Orascom Telecom – Financial and Operating 1Q11 Results
Additional information: Orascom Telecom – Financial and Operating 1Q11 Results* • Revenues reached US$ 949 million (increased 5% y-o-y) as a result of strong growth in all GSM operations • EBITDA reached US$ 437 million (increased 11% y-o-y) y o y) demonstrating a solid performance across all the GS
Slide 22: FOREX Development
FOREX Development 2Q10 3Q10 4Q10 1Q11 Average Closing Average Closing Average Closing Average Closing Currency rate rate rate rate rate rate rate rate RUR 30 24 30.24 31 20 31.20 30 62 30.62 30 40 30.40 30 71 30.71 30 48 30.48 29 27 29.27 28 43 28.43 UAH 7.92 7.91 7.90 7.91 7.93 7.96 7.95 7.96 KZT 1
Slide 23: Map of Operations
Map of Operations Pop: 3.1 mln. Pop: 15.8 mln. Pen: 125% Pen 129% Pop: 28.0 mln. GDP* 5,800 GDP* 12,800 Pen: 79% Pop: p 4.2 mln. GDP* 3,100 GDP Pen: 109% GDP* 4,800 Pop: 7.1 mln. Pen: 81% Pop: 45.2 mln. GDP* 2,000 Pen: 111% GDP* 6,700 Population: p 140.0 mln. Penetration: 159% Pop: 5.6 mln. Populati