71 slides from VEON Ltd. ORD's corporate update, Dec 2, 2014
Slide 1: Bangladesh Site Visit 2014
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 < 1>
Slide 2: VimpelCom: creating value by investing in future
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 VimpelCom: creating value by investing in future Gerbrand Nijman Group Director and Head of Investor Relations < 2>
Slide 3: Disclaimer
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 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,
Slide 4: Program
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Program Time Banglalink analyst & investor site visit, Dhaka 08:30-09:00 Registration 09:00-09:45 Gerbrand Nijman Head of IR VimpelCom Group 09:45-10:30 Ziad Shatara CEO Banglalink 10:30-10:45 Break 10:45-11:45 Shihab Ahm
Slide 5: A well diversified leading international mobile operator
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 A well diversified leading international mobile operator Headquartered in Amsterdam Mobile Population USD 20.8 billion2 customers covered Total operating 223 739 revenue split (%) 38 8 6 5 4 33 30 million2 million3 70% fr
Slide 6: VimpelCom simplified structure
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 VimpelCom simplified structure VimpelCom Amsterdam Africa Russia Italy Ukraine CIS & Asia Algeria Kazakhstan Pakistan Uzbekistan Bangladesh Tajikistan Zimbabwe Kyrgyzstan Laos Armenia Georgia < 6>
Slide 7: Experienced international executive team
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Experienced international executive team Rene Schuster Jo Lunder Andrew Davies COO CEO CFO < 7>
Slide 8: VimpelCom has an attractive emerging markets portfolio
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 VimpelCom has an attractive emerging markets portfolio 70% of revenue in emerging markets Emerging market portfolio ► Solid market positions in our LTM 3Q14 seven major emerging markets: Revenues – #1 in 4 (UKR, ALG, PAK,
Slide 9: Strong EBITDA margin versus our global peers
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Strong EBITDA margin versus our global peers EBITDA Margin (FY13)1 44% 44% 45% 43% 37% 35% 34% 34% 30% 31% 20% VIP WE Telcos with CIS / Emerging Market Others2 CEE Exposure 1 VIP EBITDA Margin, excluding write-off related
Slide 10: Growth drivers
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Growth drivers External growth drivers VimpelCom’s positioning ► Customer growth from increase in mobile ► Leading player in growth markets with high penetration quality networks ► Mobile data usage growth ► Significant u
Slide 11: Significant upside in terms of mobile penetration & data usage
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Significant upside in terms of mobile penetration & data usage Mobile Penetration1 (%) Mobile Data Penetration2 (%) Data Usage2 (MB / User) Western Europe 171% Avg: 66% 1,195 155% 151% 55% Western Europe Avg: 133% 53% 996
Slide 12: Continued sequential improvements in 3Q14
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Continued sequential improvements in 3Q14 Service revenue Mobile customers1 (USD billion) (million) • Sequential improvements: Revenue and EBITDA growth 4.8 223 ► ► Higher EBITDA margin ► Strong customer growth - 5% organ
Slide 13: Improved debt maturity profile in 3Q14
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Improved debt maturity profile in 3Q14 As at 30 September 2014, in USD billion Group debt maturity schedule by unit Debt composition by unit Italy Russia 5.9 6.0 3% A&A 22% HQ Italy 3.3 2.9 USD Russia 2.2 2.0 1.9 51% 1.5
Slide 14: Lower leverage and average cost of debt in 3Q14
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Lower leverage and average cost of debt in 3Q14 EBITDA1 / Financial Average Cost Net Debt/ EBITDA1 Gross Debt/ EBITDA1 income and expenses of Debt 3Q14 2.5 3.2 4.2 6.3% -0.1 QoQ -0.1 QoQ -0.1 QoQ -0.8 p.p. QoQ With a cash
Slide 15: Key recent developments in 3Q14
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Key recent developments in 3Q14 • Macro-economic slow down and material currency devaluation in Russia and Ukraine, due to geopolitical unrest • Resolution in Algeria is on track for closing by end of 2014 • Successful co
Slide 16: BU Africa & Asia: market leadership in fast growing emerging markets
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 BU Africa & Asia: market leadership in fast growing emerging markets as at 3Q14 Average mobile penetration Population covered Mobile customers (%) (million) (million) 74 415 91.6 +4 million YoY Revenue EBITDA EBITDA margi
Slide 17: Attractive markets and market positions
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Attractive markets and market positions Algeria Pakistan Bangladesh Population1: 38.8 million Population1: 196.2 million Population1: 166.3 million GDP/capita1: USD 7,500 GDP/capita1: USD 3,100 GDP/capita1: USD 2,100 Pene
Slide 18: Launch of 3G services driving customer growth
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Launch of 3G services driving customer growth Algeria Pakistan Bangladesh Revenue & Customers Revenue & Customers Revenue & Customers 27.0 28.5 26.7 10.9 11.0 34.1 36.7 36.0 35.9 34.5 34.4 25.7 26.0 26.3 10.1 10.2 33.5 24
Slide 19: Launch of 3G services driving customer growth
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Launch of 3G services driving customer growth Algeria Pakistan Bangladesh EBITDA & EBITDA Margin EBITDA & EBITDA Margin EBITDA & EBITDA Margin 20.2 22.0 21.0 21.0 4.4 19.0 18.8 18.1 12.3 4.2 11.5 11.5 3.8 3.7 4.0 10.0 10.
Slide 20: Algeria: Focus on commercial 3G launch
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Algeria: Focus on commercial 3G launch Data revenue x4 times 2Q14 3Q14 Successful Data & handsets New special 3G 3G launch promotion value added services • 3G services currently in 14 main • Smartphone and dongle promotio
Slide 21: Pakistan: Improving network and increased usage
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Pakistan: Improving network and increased usage MOU development 3Q13 4Q13 1Q14 2Q14 3Q14 Improved network and Transparency in value MFS promotion is increased usage added services in focus, +30% QoQ • 2G coverage/capacity
Slide 22: Ziad Shatara
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Ziad Shatara Chief Executive Officer < 22>
Slide 23: Overview of Bangladesh telecom market; Banglalink: A successful turnaround
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 1 Overview of Bangladesh telecom market 2 Banglalink: A successful turnaround < 23>
Slide 24: Bangladesh population distribution
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Bangladesh population distribution Dhaka 54.7 Rangpur Sylhet 18.2 11.4 Rajshahi Chittagong 21.3 32.8 Khulna 18.1 Barisal 9.6 Population in millions < 24>
Slide 25: Bangladesh at a glance
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Bangladesh at a glance • Consistent economic growth • Steady sovereign credit (6% on average since 1996) rating • Stable currency (since June ► Moody’s: Ba3 (Stable) 2013) ► S&P: BB (Stable) • Growing foreign currency Key
Slide 26: Bangladesh: One of the fastest growing economies in Asia
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Bangladesh: One of the fastest growing economies in Asia 3-year average real GDP growth (%) Real GDP growth (%) 10.0% 6.5% 6.5% 6.0% 6.1% 8.0% 7.6% 5.6% 7.0% 6.8% 6.2% 6.0% 5.7% 5.5% 5.4% 5.3% 4.4% 2010 2011 2012 2013 201
Slide 27: Growth potential in low ARPU and underpenetrated market
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Growth potential supported by sustained economic growth in low ARPU and underpenetrated market High growth in underpenetrated wireless market ARPU* (USD/month) 14% Malaysia $14.3 Bangladesh China $9.5 12% Thailand $6.2 20
Slide 28: Attractive mobile market dynamics
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Attractive mobile market dynamics Bangladesh wireless customer base and penetration* • Bangladesh is mainly a prepaid and 120 113.8 118.5 80% 2G market. However, 3G usage is increasing steadily following launch of 100 97.
Slide 29: Growing coverage of mobile networks
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Growing coverage of mobile networks 1997 2000 2002 2004 At present 3/64 Districts 30/64 Districts 50/64 Districts 61/64 Districts 64/64 Districts • Nearly entire population (99.2%) is within mobile network • 90% land area
Slide 30: High growth potential for mobile internet
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 High growth potential for mobile internet Mobile usage captures 96% of internet usage Growth in data from existing and new customers 180 166 160 4% 140 118 million 120 100 Voice only 80 77 million users 96% 60 40 Mobile 2
Slide 31: Fast growing 3G penetration
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Fast growing 3G penetration 10 fastest smartphone growth markets globally in 2015 Faster 3G penetration anticipated as smartphones become increasingly affordable. Sale of low priced locally branded smartphones are quickly
Slide 32: A tigers trail
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 A tigers trail 2005 2007 2008 2012 2013 2014 • Banglalink • Banglalink • Achieved • Exceeded • Launched 3G • Exceeded launched became the 10 million 25 million service 30 million • Achieved 2nd largest customer customers
Slide 33: A successful turnaround
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 A successful turnaround Revenue (BDT billion) EBITDA (BDT billion) Data revenue growth (QoQ) 4.4 10.9 11.0 4.2 4.0 10.2 3.8 26% 10.1 10.0 10.0 3.7 3.6 9.3 15% 3.4 9% 7% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 1Q13 2Q13 3Q13 4Q
Slide 34: Shihab Ahmad
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Shihab Ahmad Chief Commercial Officer < 34>
Slide 35: Market share development; Value proposition; Churn
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 1 Market share development 2 Value proposition 3 Churn 4 Customer excellence 5 Mobile financial services 6 CSR and awards < 35>
Slide 36: Mobile market share
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Mobile market share Customer market share Banglalink’s growing revenue market share 60% 22.6% 22.1% 22.1% 22.2% 22.0% 50% 53.1% 50.5% 21.4% 21.4% 47.8% 47.0% 44.3% 43.7% 40% 42.7% 42.4% 41.2% 41.4% Q1'13 Q2'13 Q3'13 Q4-13
Slide 37: Banglalink regains growth momentum
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Banglalink regains growth momentum Customers and revenue 29.8 30.2 28.8 29.4 28.1 27.1 25.9 10.9 11.0 10.1 10.0 10.0 10.2 9.3 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 Revenue (BDT billion) Subscribers (in millions) • Sustained
Slide 38: Both voice and data revenue growing
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Both voice and data revenue growing Voice revenue* Data revenue 9M13 vs 9M14 9M13 vs 9M14 +8% +67% 2013 2014 2013 2014 • Launch of 3G instigated significantly higher growth in data revenue • Voice revenue is also on stead
Slide 39: Banglalink value proposition
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Banglalink value proposition Value for money • Products (voice and data) competitive, affordable, gives more value compared to competition, customers spending the same Product Differentiator Aspired state Hygiene Below ma
Slide 40: Banglalink's fast growing data revenue
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Banglalink’s fast growing data revenue Growth of data revenue (QoQ) • Accelerated growth in data revenue 26% since launch of 3G in 4Q13 • 3G coverage in all 64 district head quarters and expanding further 15% • Fast growi
Slide 41: Mobile data strategy
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Mobile data strategy Give the best customer experience + Optimum coverage - optimum speed - “peace of mind” charging Faster acquisition + + Increase handset penetration Co-branding partnership - consignment projects - rev
Slide 42: Driving data growth
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Driving data growth Focus from voice centric approach towards data centric approach Acquisition Enablers ARPU Enhancement • Convert non-data users through • Synergistic approach to utilize all • Bracketing the customers t
Slide 43: Improving churn strengthening growth potential for Banglalink
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Improving churn strengthening growth potential for Banglalink Churn (annualized) 27.6% 25.3% 21.0% 21.4% 20.4% 15.6% 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 < 43>
Slide 44: Banglalink is the clear leader in customer experience
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Banglalink is the clear leader in customer experience with an improving trend Net Promoter Score (NPS) Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Banglalink Relative NPS (Banglalink’s gap to the best competitor) 5 6 1 3 3
Slide 45: Mobile Financial Services
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Mobile Financial Services • It is a bank-led model regulated by the Central Bank ► Banks offer end-to-end services to the customers ► Mobile operators provide only network and distribution channels • Central Bank approved
Slide 46: Bangladesh MFS model
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Bangladesh MFS model Mobile Banking Customer Agent Service Provider Managed by bank or mobile operator • Customer maintains mobile banking account with bank Network connectivity Physical money • Agent maintains virtual ba
Slide 47: Banglalink CSR: a passionate social commitment
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Banglalink CSR: a passionate social commitment Cox’s bazar sea beach cleaning project Banglalink’s free schoolbags • Banglalink in collaboration with an internal • Distributed 7,000 bags among primary school agency partic
Slide 48: Banglalink CSR: a passionate social commitment
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Banglalink CSR: a passionate social commitment M-Agriculture Grandmaster an idea generation contest season 3 • Banglalink launched a mobile based • A contest for the youth to identify the best agriculture information serv
Slide 49: Key awards won by Banglalink
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Key awards won by Banglalink MFS award 2010 Innovative service award 2009 Communication award 2013 Mobile Cash Remittance Jigyasha 7676 Banglalink Network Campaign Innovative service award 2014 Brand award 2013 HR award 2
Slide 50: Banglalink …poised for growth…
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Banglalink …poised for growth… < 50>
Slide 51: Ahmad Y. Haleem
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Ahmad Y. Haleem Chief Financial Officer < 51>
Slide 52: Financial overview; Cash flows; Bond and debt position
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 1 Financial overview 2 Cash flows 3 Bond and debt position 4 Operational excellence < 52>
Slide 53: YTD Financial overview: improvements in 2014
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 YTD Financial overview: improvements in 2014 In BDT billion 9M13 9M14 Change Impact Total Revenue 29.4 32.1 10% EBITDA 11.1 12.5 10% EBITDA margin (%) 38.2% 38.3% 0.1 p.p. CAPEX 11.8 9.2 21% CAPEX to Revenue (%) 40% 29% -
Slide 54: Operational excellence contributing to a successful turnaround
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Operational excellence contributing to a successful turnaround EBITDA and EBITDA margin 41.3% 50.0% 38.2% 39.7% 37.2% 36.3% 37.4% 33.7% 40.0% 30.0% 4.0 4.2 4.4 20.0% 3.8 3.7 3.6 3.4 10.0% 0.0% 1Q13 2Q13 3Q13 4Q13 1Q14 2Q1
Slide 55: A successful growth company
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 A successful growth company Customers (in million) 29.4 29.8 30.2 28.1 28.8 25.9 27.1 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 ARPU (BDT) MOU (min) 119 126 121 117 121 120 198 189 183 188 201 200 110 175 1Q13 2Q13 3Q13 4Q13 1Q1
Slide 56: Solid cashflows
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Solid cashflows Operating Activities 9M13 9M14 In BDT billion 15,371 Operating Activities 3,910 11,079 12,612 Investing Activities (14,593) (12,418) 8,203 Net Financing Activities 11,575 1,823 Total 892 484 2012 2013 LTM
Slide 57: Banglalink bond: First ever international bond offering from Bangladesh
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Banglalink bond: First ever international bond offering from Bangladesh Bond summary Bond USD 300 million • A landmark deal marking first ever Interest rate 8.625% international bond offering from Bangladesh, even prior t
Slide 58: Debt position
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Debt position As at September 30, 2014 BDT billion USD million Bond 23.2 300 Shareholder loan (subordinated) 28.7 371 Term loan 1.1 14 Vendor loan 0.3 4 Short term loan facilities 10.7 138 TOTAL 64.0 827 < 58>
Slide 59: Leverage
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Leverage Debt / LTM EBITDA 2.3 2.2 Strong shareholder commitment with continued financial, operational and technical support 3Q13 3Q14 < 59>
Slide 60: To become the number 1 digital telecom operator
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 To become the number 1 digital telecom operator Increased revenue Reduced OPEX • Incremental customer acquisitions • Rationalize service operation costs ► Improve online sales – increase market ► Reduce costs of customer
Slide 61: Perihane Elhamy
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Perihane Elhamy Chief Technical Officer < 61>
Slide 62: Network update; Mobile data strategy; Operational excellence
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 1 Network update 2 Mobile data strategy 3 Operational excellence < 62>
Slide 63: Near complete nationwide network coverage
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Near complete nationwide network coverage With more than 99% population coverage, Banglalink’s network coverage now spans across most parts of the nation enabling higher quality of service and customer satisfaction. Near
Slide 64: Broadly distributed tower network
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Broadly distributed tower network More than 9,000 towers distributed across the nation with 84% directly owned and 16% leased from 3rd parties >9,000 Nationwide tower network Multiple tower formats Dhaka 21% Green Field 4
Slide 65: Extensive optical fiber / backbone network
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Extensive optical fiber / backbone network Banglalink has established a comprehensive nationwide transmission network with more than 3,000km of optical fiber and SDH backbone / access rings that has been designed with mul
Slide 66: Network modernization
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Network modernization Old 2G equipment and 3G preparation triggered network modernization 2G modernization Dhaka • 3G ready equipment for Traffic 100% 116% access/transmission 2013 2014 • More sites IP-connected 99.6 Acce
Slide 67: Growth in data mainly driven by 3G
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Growth in data mainly driven by 3G Since commercial launch of 3G in October 2013 there has been significant growth in data traffic 3G High 3G data growth Population covered %, 3G 2G & 3G data traffic 2% 18% 32% 51% 98% 11
Slide 68: Main areas of operational excellence
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Main areas of operational excellence Operational excellence targeting maximal Major initiatives across functions cost efficiency ~70% Site sharing Per site civil works savings * Own site vs. sharing site CAPEX efficiency
Slide 69: Operational excellence initiatives resulted in direct reduction in operational cost
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Operational excellence initiatives resulted in direct reduction in operational cost Through the operational excellence initiatives significant improvement in maintenance and utility cost KPIs achieved Overall OPEX trend O
Slide 70: Thank you
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Thank you < 70>
Slide 71: Further information
Bangladesh Site Visit 2014 Bangladesh, December 2nd 2014 © VimpelCom Ltd. 2014 Further information Investor Relations Claude Debussylaan 88 1082 MD Amsterdam The Netherlands T: +31 20 79 77 234 E: ir@vimpelcom.com Visit our awards winning website Install VimpelCom’s App www.vimpelcom.com iPad App <