27 slides from VEON Ltd. ORD's earnings presentation, Mar 18, 2010
Slide 1: VimpelCom 4Q09 and FY2009 Financial and Operating Results
VimpelCom 4Q09 and FY2009 Financial and Operating Results
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, in part, to the proposed combination with Kyivstar and its benefits, and the Comp
Slide 3: Participants
Participants Boris Nemsic, Chief Executive Officer Presentation Elena Shmatova, Chief Financial Officer will be joined by: Q&A Session Alexander Torbakhov, General Director Dmitry Pleskonos, Head of B2C Russia Andrey Patoka, Head of B2B Russia Dmitry Kromsky Head of CIS Business Martin Furuseth Chie
Slide 4: VimpelCom Group: 2009 in Brief
VimpelCom Group: 2009 in Brief • 3.6m new mobile customers, total active subscriber base 64.6m • 2.3m broadband subscribers, 85% growth y-o-y • Revenues in local currencies up in all major markets • OIBDA of $4.3bn, margin up to 49.1% compared to 48.0% in 2008 • Free cash flow of $2.7bn after $0.8bn
Slide 5: Group: Full Year 2009 Highlights
Group: Full Year 2009 Highlights Revenue*, $ mln Net Income**, $ mln -14.0% 10,117 8,703 1,463 114.1% 7,171 1,122 4,868 811 615 3,211 524 2,113 350 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 OIBDA***, $ mln OIBDA Margin***, % -12.1% 48.6% 48.9% 50.4% 50.2% 48.0% 49.1% 4,860 4,272 3,
Slide 6: Group: Quarterly Financial Dynamics
Group: Quarterly Financial Dynamics Revenue, $ mln Net Income (Loss) *, $ mln +1.4% 696 2,843 433 2,555 269 283 2,146 2,276 2,309 1,973 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 -816 -290 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 OIBDA, $ mln OIBDA Margin, % -5.2% 1,388 50.4% 1,124 1,148 48.1% 949 1,088 1,088 4
Slide 7: Group: Financial Position
Group: Financial Position Liquidity position, $ mln Key Ratios and Indicators Dec 31, Sept 30, Jun 30, Mar 31, Dec 31, ($ mln) 2009 2009 2009 2009 2008 Cash and Cash Equivalents 1,447 2,522 1,649 966 915 4,860 Total Assets 14,733 15,570 14,729 13,572 15,725 4,654 4,683 4,548 4,309 4,272 Total Debt 7
Slide 8: Group: Debt Profile as of December 31, 2009
Group: Debt Profile as of December 31, 2009 Debt Maturity Schedule, USD mln 1,963 220 1,813 423 1,199 227 1,000 40 732 605 * * 903 903 23 18 1Q10 2Q10 3Q10 4Q10 2010 2011 2012 2013 2014 2015 2016 2017 2018 Debt composition by currency 15% 14% 17% 24% 26% 10% 10% 10% 10% 9% 75% 76% 73% 66% 65% 4Q08 1
Slide 9: Russia: Consolidated Operations
Russia: Consolidated Operations Revenue*, RUR bn CAPEX, USD mln 58.8 58.8 59.1 61.2 58.8 56.3 12.0 13.0 13.6 13.5 10.8 13.3 49.3 642 49.4 49.0 45.7 49.4 51.5 504 332 91 107 90 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 OIBDA (RUR bn) and OIBDA Margin CAPEX / Revenue LTM*
Slide 10: Russia: Mobile Highlights
Russia: Mobile Highlights Subscribers, mln Revenue, RUR bn +6.7% +0.5% 5 0 4 0 3 0 47.7 49.4 50.0 51.0 50.9 49.4 49.0 49.4 51.5 49.3 45.1 45.7 2 0 1 0 0 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 Mobile ARPU & MOU OIBDA (RUR bn) & OIBDA Margin 368.2 340.6 331.8 26.8 26.4
Slide 11: Russia: Fixed-line Segment
Russia: Fixed-line Segment Business Segment, RUR bn 5.2 5.5 5.8 5.3 5.0 4.8 Revenue (RUR bn) and OIBDA Margin 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 1 5 +12.7% 6 0 % 1 3 13.6 13.5 Wholesale Segment, RUR bn 13.3 13.0 5 0 % 1 1 12.0 10.8 4 0 % 30.1% 9 29.6% 24.6% 26.4% 25.5% 7 24.9% 3 0 % 7.2 7.1 5.2 6.1
Slide 12: Russia: Residential Broadband Development
Russia: Residential Broadband Development Broadband Subscribers, ‘000 FTTB Households Passed (mln) 2,111 & Take-up Rate (%) 1,833 1,659 9 .0 2 2 % 7.9 7.9 7.9 1,498 1,038 8 .0 7.2 7.5 2 0 % 1,182 896 7 .0 1 8 % 763 5.9 650 6 .0 1 6 % 12.4% 412 5 .0 1 4 % 764 10.5% 91 9.6% 9.9% 4 .0 1 2 % 9.2% 8.8% 1
Slide 13: Kazakhstan: Operating & Financial Highlights
Kazakhstan: Operating & Financial Highlights Mobile Subscribers, mln Revenue* (KZT bn) -2.2% 23.8 23.7 +8.0% 23.7 25.9 25.6 1.0 1.1 0.7 0.9 21.4 0.9 0.7 2 0 . 0 0 23.5 23.3 23.3 25.6 25.2 5.6 6.3 6.4 6.6 6.8 21.1 6.1 0 . 0 0 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 Mob
Slide 14: Ukraine: Operating & Financial Highlights
Ukraine: Operating & Financial Highlights Mobile Subscribers, mln Revenue* (UAH mln) 456 442 -2.3% 424 385 390 5 0 0 4 8 5 365 4 7 0 4 5 5 4 4 0 157 4 2 5 4 1 0 219 3 9 5 161 3 8 0 3 6 5 3 5 0 190 3 3 5 189 220 3 2 0 3 0 5 2.4 2.1 2.2 2 9 0 2 7 5 1.9 330 2 6 0 2.0 265 2 4 5 1.9 284 2 3 0 227 2 1 5 2
Slide 15: Armenia: Operating & Financial Highlights
Armenia: Operating & Financial Highlights Mobile Subscribers, ‘000 Revenue* (AMD bn) 20.8 19.5 19.2 18.2 17.1 18.3 2 0 . 0 0 11.3 11.2 11.6 10.2 10.9 11.2 784 545 544 481 486 502 9.5 8.3 6.9 7.3 7.6 7.0 0 . 0 0 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 Mobile Fixed Mobi
Slide 16: Uzbekistan: Operating & Financial Highlights
Uzbekistan: Operating & Financial Highlights Mobile Subscribers, mln Revenue ($ mln) -3.3% 6 0 . 0 0 3.6 3.7 3.6 3.7 3.5 4 0 . 0 0 3.1 66.5 58.4 58.5 52.6 50.1 50.2 2 0 . 0 0 0 . 0 0 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 Mobile ARPU & MOU OIBDA ($ mln) & OIBDA Margi
Slide 17: Cambodia: Strong Growth
Cambodia: Strong Growth Network Brand awareness coverage 62% 60% 59% Total country Phnom-Penh Provinces Network roll-out, BTS 552 Initial results We serve more than 370 thousand subscribers In 2009 we put in operation 552 BTS covering 217 70% of the population 125 129 81 We have over 3,000 poi
Slide 18: Vietnam: Business Development on Schedule
Vietnam: Business Development on Schedule Network Brand awareness, % coverage 86 83 76 64 Total Hanoi Da Nang Ho-Chi-Minh Total awareness Network roll-out, BTS Initial results 1,950 We serve 1.1 million subscribers counted on a one month active basis 896 797 In 2009 we put in operation 1,950 BTS
Slide 19: Summary
Summary • Integrated business model ensures sustainable development • Revenues are growing in all of our core markets • Residential broadband demonstrates very encouraging dynamics • VimpelCom continues to deliver strong margins • Combination with KyivStar will create a new platform for value creati
Slide 20: APPENDICES — Beeline
APPENDICES — Beeline March 18, 2010 20
Slide 21: Map of Operations
Map of Operations Population: 45.3 mln. Population: 4.3 mln. Acquired: Nov. 2005 Acquired: Jul. 2006 Penetration: 112% Penetration: 90% GDP* 6,400 GDP* 4,500 Population: 140.7 mln. Population: 3.0 mln. Penetration: 149% Acquired: Nov. 2006 GDP*: 15,200 Penetration: 88% GDP* 5,900 Population: 15.7 ml
Slide 22: FOREX Development
FOREX Development 1Q09 2Q09 3Q09 4Q09 Opening Average Closing Average Closing Average Closing Average Closing Currency rate Rate Rate Rate Rate Rate Rate Rate Rate RUR 29.39 33.93 34.01 32.21 31.29 31.33 30.09 29.47 30.24 KZT 120.79 138.85 151.40 150.47 150.41 150.75 150.95 149.77 148.36 UAH 7.70 7.
Slide 23: Composition of the CIS Business 4Q 2009
Composition of the CIS Business 4Q 2009 Revenues, $ mln 15.6 10.2 47.3 50.2 48.1 341.6 170.4 Kazakhstan Ukraine Uzbekistan Armenia Tajikistan Georgia CIS Total OIBDA, $ mln 7.1 0.4 22.7 23.0 7.6 154.7 93.9 Kazakhstan Ukraine Uzbekistan Armenia Tajikistan Georgia CIS Total CAPEX, $ mln 5.4 3.3 7.8 21
Slide 24: CIS Mobile: Financial Highlights
CIS Mobile: Financial Highlights Kazakhstan Ukraine Uzbekistan 196 194 170 168 152 155 68 64 103 94 98 48 56 56 50 47 48 82 89 34 76 26 30 25 6 0 3 5 1 32 33 32 26 22 22 -9 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 Armenia Tajikistan
Slide 25: CIS Mobile: Subscribers, mln
CIS Mobile: Subscribers, mln Kazakhstan Ukraine Uzbekistan 6.8 6.3 6.4 6.6 6.1 5.6 3.6 3.7 3.6 3.7 3.5 3.1 2.4 2.1 2.2 2.0 1.9 1.9 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 Armenia Tajikistan Georgia 0.78 0.72 0.71 0.74 0.62 0.68 0.54
Slide 26: CIS Mobile: ARPU & MOU Development
CIS Mobile: ARPU & MOU Development Kazakhstan Ukraine Uzbekistan 18. 0 420 409 387 299 289 350 12.1 262 12. 0 10.8 230 213 239 226 280 9.7 218 204 201 7.8 7.9 8.2 8.5 7.0 210 6.5 6.5 108 101 98 102 5.4 5.2 4.6 6. 0 81 91 4.5 5.2 3.9 4.7 4.5 140 70 0. 0 0 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09 4Q 09 3Q 08 4Q
Slide 27: Reconciliation of Consolidated OIBDA and OIBDA Margin (Unaudited)
Reconciliation of Consolidated OIBDA and OIBDA Margin (Unaudited) Three months ended Dec 31, Sept 30, June 30, March 31, Dec 31, Sept 30, (US$ millions) 2009 2009 2009 2009 2008 2008 Reconciliation of OIBDA to operating income Adjusted OIBDA 1,088 1,148 1,088 949 1,124 1,388 Depreciation (393) (366)