VEON Ltd. · NASDAQ:VEON
VEON — VimpelCom — FY2010 Earnings Presentation
20 slides from VEON's earnings presentation, Mar 29, 2011
Slide 1: 4Q10 and FY10 Presentation
VimpelCom Ltd 4Q10 and FY10 Presentation Amsterdam March 29th, 2011 Exhibit 99.2
Slide 2: Disclaimer
© VimpelCom Ltd 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 perfo
Slide 3: Participants
© VimpelCom Ltd Participants Q&A Session will be joined by: Elena Shmatova Head of Russian operations Dmitry Kromsky Head of the CIS operations Andrew Simmons CFO of Ukrainian operations Alexey Subbotin Head of Investor Relations Alexander Izosimov President and Chief Executive Officer Henk van Dale
Slide 4: Corporate highlights
© VimpelCom Ltd Corporate highlights 4Q10 results 2010 full year results • Net operating revenues increased by 22.0% y-o-y to $2.8 billion • Adjusted OIBDA* reached $1.3 billion (up 15.0% y-o-y); consolidated OIBDA margin of 44.5% • Net income attributable to VimpelCom Ltd was $461.2 million (up 62.
Slide 5: Group 4Q10 Financial Highlights
© VimpelCom Ltd -37 1,252 1,378 1, 088 Russia 4Q10 Ukraine 4Q10 CIS 4Q10 SEA and eliminations VimpelCom VimpelCom VimpelCom Ltd 4Q10 Ltd 3Q10 Ltd 4Q09 Group 4Q10 Financial Highlights Revenue * , USD mln Net Income attributable to VimpelCom Ltd, USD mln OIBDA ** , USD mln Net cash and Capex, USD mln
Slide 6: Group FY10 Financial Highlights
© VimpelCom Ltd Group FY10 Financial Highlights Revenue * , USD mln Net Income attributable to VimpelCom Ltd, USD mln OIBDA ** , USD mln ** Adjusted OIBDA and Adjusted OIBDA margin are referred to as OIBDA and OIBDA margin, respectively * Refers to Net operating revenues 1,612 - 1,673 1,122 Russia F
Slide 7: Group Financial Position
($ mln) Dec 31, 2010 Dec 31, 2009 Dec 31, 2008 © VimpelCom Ltd Group Financial Position Key Ratios and Indicators Cash Flow Dynamics, USD mln * OIBDA represents adjusted OIBDA, which constitutes the sum of the lines: Operating income and Depreciation, amortization and impairment loss. ** Net Debt is
Slide 8: Consolidated Cash and Debt Development
© VimpelCom Ltd Consolidated Cash and Debt Development 2010 Development, USD million (5,420) 3, (1,782) (196) (480) (600) (99) (4,740) Net debt as of Dec 31, 2009 Net cash provided by operating activities Cash paid for capex Cash paid for acquisitions net of cash acquired Cash balance of Kyivstar as
Slide 9: Group Debt Profile as of December 31, 2010
© VimpelCom Ltd 1,490 1,000 1Q11 2Q11 3Q11 4Q11 Group Debt Profile as of December 31, 2010 Debt Maturity Schedule, USD mln Debt Composition by Currency - due in 2011 - due after 2011 - EUR - RUR - USD 1,162 - paid 75% 65% 50% 10% 9% 15% 26% 50% $5, 661 mln of total debt
Slide 10: Dividends for 2010
© VimpelCom Ltd Dividends for 2010 • Interim dividend of $600 million or $0.46 per ADS, declared and paid in December 2010 • Interim dividend of $250 million or $0.19 per ADS, declared and paid in March 2011 • Final dividend expected in the first half of 2011 Dividend policy: to distribute at least
Slide 11: Russia: Operating Highlights
150,0 300,0 © VimpelCom Ltd 51,0 50,9 51,3 50,9 51,6 52,0 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 0,8 1,0 1,1 1,1 1,2 1,4 0,9 1,0 1,2 1,3 1,5 1,9 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 USB modems subs FTTB 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 FTTB USB modems Russia: Operating Highlights Mobile subscriptions
Slide 12: Russia: Financial Highlights
20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0% 100,0% © VimpelCom Ltd 21,7 10,2 17,6 11,7 11,8 -1,9 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4Q 10 Russia: Financial Highlights Revenue, RUR bn CAPEX OIBDA (RUR bn) and OIBDA Margin Free Cash Flow, RUR bn 61.2 61.7 64.3 58.8 57.4 64.5 +9.7% y-o-y +0.4% q-o-q +0.
Slide 13: Ukraine (pro-forma): Operating Highlights
150,0 300,0 450,0 600,0 © VimpelCom Ltd 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 24,5 24,0 23,9 24,1 25,1 24,4 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Ukraine (pro-forma): Operating Highlights Mobile subscriptions, mln Fixed-line broadband subscriptions, ‘000 ARPU and MOU Fixed-line broadba
Slide 14: Ukraine (pro-forma): Financial Highlights
30,0% 35,0% 40,0% 45,0% 50,0% 55,0% 60,0% 65,0% 70,0% 75,0% 80,0% © VimpelCom Ltd 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1.6 1.6 1.4 1.7 1.9 1.7 50,2% 51,8% 49,4% 54,2% 56,8% 53,4% 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 OIBDA OIBDA Margin 3.2 3.2 2.9 3.0 3.4 3.2 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 Ukraine (pro-forma): Fina
Slide 15: CIS Operations
30,0% 35,0% 40,0% 45,0% 50,0% 55,0% 60,0% 65,0% 70,0% 75,0% 80,0% © VimpelCom Ltd 52,1% 49,2% 47,4% 48,2% 48,8% 44,3% 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4 Q 10 OIBDA OIBDA Margin 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10 4 Q 10 Fixed-line Mobile CIS Operations * * This segment includes our operations in Kazakhstan,
Slide 16: South-East Asia
© VimpelCom Ltd South-East Asia Vietnam Cambodia • 80% population coverage in a country with 15 mln people • Active subscriber base above 0.65 mln • 38% q-o-q revenue growth Laos • Coverage of 85% of urban and 32% of rural population • 0.52 mln subscriptions as of the end of February 2011 • Market s
Slide 17: Summary
© VimpelCom Ltd Summary • Solid financial performance by the Group • Focus on growth acceleration in Russia • Ukraine delivers on promises with market share recovery and synergies ahead of expectations • Taking business to the next level through Wind Telecom deal
Slide 18: APPENDICES
© VimpelCom Ltd APPENDICES
Slide 19: FOREX Development
© VimpelCom Ltd Source: National Banks of the CIS countries, Company calculations FOREX Development 1Q10 2Q10 3Q10 4Q10 Currency Opening rate Average rate Closing rate Average rate Closing rate Average rate Closing rate Average rate Closing rate RUR 30.19 29.89 29.36 30.24 31.20 30.62 30.40 30.71 30
Slide 20: Map of Operations
Population: 140.1 mln. Penetration: 157% GDP*: 15,900 © VimpelCom Ltd Map of Operations Population: 45.3 mln. URS acquired: Nov ’05 Kyivstar: Apr ‘10 Penetration: 110% GDP* 6,700 Population: 7.0 mln. Acquired: Jan. 2006 Penetration: 77% GDP* 2,000 Population: 3.0 mln. Acquired: Nov. 2006 Penetration