26 slides from VEON Ltd. ORD's earnings presentation, Aug 15, 2012
Slide 1: 2Q 2012 Presentation
2Q 2012 © VimpelCom Ltd 2012 Presentation Amsterdam, August 15th, 2012 Jo Lunder - CEO Henk van Dalen - CFO 1
Slide 2: Disclaimer
Disclaimer This press release 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 financial performance objectives, development plans and anticipa
Slide 3: Key results 2Q12
Key results 2Q12 Revenues* EBITDA* EBITDA margin* Total mobile subscriber (USD billion) (USD billion) (%) Base* (million) 5.7 2.5 43.2 208 © VimpelCom Ltd 2012 (+4% organic) (+8% organic) (+2.6 p.p.) (+8%) Net income* Net cash from operating Highlights (USD million) activities (USD billion) • Double
Slide 4: Business Units Performance
Business Units Performance © VimpelCom Ltd 2012 4
Slide 5: Russia Performance 2Q12
Russia Performance 2Q12 Revenues EBITDA and EBITDA Margin CAPEX* (RUB billion) (RUB billion) (RUB billion) +8% YoY +12% YoY 59.8 54.3 69.6 71.0 70.3 30.3 22% 21% 65.2 67.0 27.1 27.9 27.7 26.4 10.8 11.5 12.0 11.4 12.3 11% 41.5% 40.0% 41.3% 43.1% © VimpelCom Ltd 2012 37.1% 15.3 54.4 58.1 59.0 55.6 57.
Slide 6: Italy Performance 2Q12
Italy Performance 2Q12 Revenues EBITDA and EBITDA Margin CAPEX* (EUR million) (EUR million) (EUR billion) Total revenues -1% YoY Stable YoY Revenue excluding MTR cut +2% YoY 1.1 1.0 1,424 526 565 533 1,399 1,397 1,346 1,383 487 524 19% 18% 16% 370 371 387 363 368 172 127 131 132 140 0.4 40.5% © Vimp
Slide 7: Africa & Asia Performance 2Q12
Africa & Asia* Performance 2Q12 Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) Stable YoY +14% YoY 720 697 Organic +8% YoY Organic +13% YoY 466 19% 19% 922 927 953 407 434 424 949 957 321 8% 45.4% 45.7% 48.9% © VimpelCom Ltd 2012 42.9% 34.8% 155 2Q 11 3Q 11 4Q 11
Slide 8: Ukraine Performance 2Q12
Ukraine Performance 2Q12 Revenues EBITDA and EBITDA Margin CAPEX* (UAH billion) (UAH billion) (UAH billion) -1% YoY -10% YoY 3.3 1.8 1.9 2.3 3.5 3.4 3.0 3.2 1.7 1.6 1.6 2.3 Thousands 0.3 0.3 0.3 17% 17% 0.2 0.3 13% 54.8% © VimpelCom Ltd 2012 53.7% 50.3% 51.1% 50.2% 3.0 3.2 3.1 3.0 0.8 2.8 2Q 11 3Q 1
Slide 9: CIS Performance 2Q12
CIS* Performance 2Q12 Revenues EBITDA and EBITDA Margin CAPEX** (USD million) (USD million) (USD million) +6% YoY +4% YoY Organic +10% YoY Organic +11% YoY 626 198 587 430 419 182 389 378 411 175 171 39% 161 36% 44 39 39 41 36 21% 45.0% 46.0% © VimpelCom Ltd 2012 40.8% 42.5% 44.3% 348 386 380 342 37
Slide 10: Financial Highlights
Financial Highlights © VimpelCom Ltd 2012 Henk van Dalen CFO 10
Slide 11: 2Q12 Pro Forma Financial Performance
2Q12 Pro Forma Financial Performance GROUP BUSINESS UNITS (USD million) 2Q12 2Q11 YoY Revenue EBITDA Revenues 5,745 6,011 -4% FX and FX and Organic Reported Organic Reported EBITDA 2,481 2,441 2% others others Depreciation/ Russia 8% -11% -3% 12% -11% 1% Amortization/ -1,289 -1,459 -12% Other Europe
Slide 12: 2Q12 Actual Financial Highlights
2Q12 Actual Financial Highlights Consolidated financial highlights (Actual) (USD million) Actual 2Q12 2Q11 YoY Total operating revenues 5,745 5,536 4% EBITDA 2,481 2,253 10% EBITDA margin 43.2% 40.7% © VimpelCom Ltd 2012 EBIT 1,192 937 27% Financial income and expenses (476) (425) 12% FX and Other 1
Slide 13: Debt, Cash and Ratios
Debt, Cash and Ratios Key Components Consolidated Cash and Net Debt Development Actual 2Q 2012 (USD million) June 30, 2012 (USD million) 28,591 (4,252) 9 3,492 26,559 Cash, Cash Equivalents and deposits 3,492 24,339 639 488 909 (2,486) (1,046) 215 23,067 Total Assets 52,543 © VimpelCom Ltd 2012 Gros
Slide 14: Debt Composition and Maturity Profile
Debt Composition and Maturity Profile Group Debt Maturity Schedule per June 2012 8.9 Wind OTH 5.4 Vimpelcom / OJSC © VimpelCom Ltd 2012 3.0 2.3 2.0 1.5 1.5 1.0 1.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q3-Q4 Other information Debt Composition by Currency Actual During 2Q 12 • Wind i
Slide 15: Simplified legal / financing structure per 30-Jun-12
Simplified legal / financing structure per 30-Jun-12 VimpelCom Group VimpelCom Ltd. VIP USD 2.2 bn OJSC Group USD 9.4 bn VimpelCom Wind Group USD 13.9 bn Amsterdam B.V. OTH Group USD 1.1 bn Gross debt USD 26.6 bn VimpelCom Holdings VimpelCom Amsterdam WIND Telecom B.V. Finance B.V. S.p.A. I © Vimpel
Slide 16: Conclusion
Conclusion © VimpelCom Ltd 2012 Jo Lunder CEO 16
Slide 17: Conclusion
Conclusion • Good start Value Agenda 2012-2014 – organic growth YoY in 2012: 1Q12 2Q12 Revenues +6% +4% © VimpelCom Ltd 2012 EBITDA +5% +8% EBITDA margin -0.6 pp +2.6 pp • Strong operational performance across most of our operations in 2Q12 • Facing short term challenges in some of our markets • On
Slide 18: © VimpelCom Ltd 2012
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Slide 19: Thank you!
© VimpelCom Ltd 2012 19 Thank you!
Slide 20: 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 20
Slide 21: Appendices
© VimpelCom Ltd 2012 21 Appendices
Slide 22: BU Russia: Operating Highlights
BU Russia: Operating Highlights Mobile subscribers ARPU and MOU (million) (RUB) (min) +1% YoY +3% YoY ARPU +14% YoY MOU 57.2 327 334 327 336 56.8 314 279 55.6 55.7 259 254 244 251 55.3 © VimpelCom Ltd 2012 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 ARPU MOU Broadband subscribers
Slide 23: BU Europe & NA: Operating Highlights Italy
BU Europe & NA: Operating Highlights Italy Mobile subscribers ARPU and MOU (million) (EUR) (min) +3% YoY ARPU -6% YoY MOU +5% YoY 21.2 16.0 15.7 15.2 15.0 21.1 14.7 21.0 20.8 198 196 205 205 209 20.6 © VimpelCom Ltd 2012 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 ARPU MOU Broadb
Slide 24: FOREX Development
FOREX Development Average rates Closing rates Currency YTD 12 YTD 11 YoY YTD 12 FY 11 Delta RUB 30.64 28.62 -6.6% 32.82 32.20 -1.9% EUR 0.77 0.71 -7.4% 0.79 0.77 -2.5% DZD 75.56 72.47 -4.1% 79.03 75.33 -4.7% © VimpelCom Ltd 2012 PKR 91.37 85.40 -6.5% 94.58 89.95 -4.9% BDT 82.30 72.37 -12.1% 81.82 81
Slide 25: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated EBITDA of VimpelCom Pro forma Actual USD million 2Q12 2Q11 2Q12 2Q11 Unaudited pro forma EBITDA 2,481 2,441 2,481 2,253 Depreciation (720) (778) (720) (717) Amortization (522) (667) (522) (585) © VimpelCom Ltd 2012 Impairment (loss) / gain (6) - (
Slide 26: Reconciliation Tables
Reconciliation Tables Reconciliation of consolidated net debt of VimpelCom USD millions 2Q 12 1Q 12 Net debt 23,067 24,339 Cash and cash equivalents 2,883 4,033 Long - term and short-term deposits 609 219 © VimpelCom Ltd 2012 Gross debt 26,559 28,591 Interest accrued related to financial liabilities