VEON Ltd. · NASDAQ:VEON
VEON — VimpelCom — Q3 2013 Earnings Presentation
27 slides from VEON's earnings presentation, Nov 6, 2013
Slide 1: 3Q 2013 Presentation
3Q 2013 Presentation Amsterdam, November 6, 2013 Jo Lunder - CEO Henk van Dalen - CFO
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 anticipated performance, expected capital expenditures, network d
Slide 3: Stable Underlying 3Q13 Results Impacted by Regulatory Measures and Market Slowdown
Stable Underlying 3Q13 Results Impacted by Regulatory Measures and Market Slowdown Comparisons with 3Q12 * Customer base 2012 has been adjusted for sale of Vietnam and Cambodia and adjustments in Algeria and Ukraine ** Net Income attributable to VimpelCom shareholders Revenues (USD billion) 5.7 (-1%
Slide 4: Key Developments
Key Developments VimpelCom switched its ADS listing to NASDAQ and was added to NASDAQ- 100(r) Index Interim 2013 dividend of USD 791 million or USD 0.45 per share declared Awarded 3G license in Bangladesh Awarded provisional 3G license in Algeria, exceptional approval to import 3G equipment Andrew D
Slide 5: Business Units Performance
Business Units Performance
Slide 6: Russia 3Q13: Operational Developments on Track with Continued Strong Mobile Data Revenue
Russia 3Q13: Operational Developments on Track with Continued Strong Mobile Data Revenue Revenues (RUB billion) (CHART) +1% YoY (CHART) Flat YoY (CHART) CAPEX* (RUB billion) Highlights: Mobile service revenues increased 3% YoY Mobile data revenue grew 30% YoY, with 35% YoY improvement in data revenu
Slide 7: Russia: Reaching Par in 3G in Key Regions
(CHART) 3G Base Stations # 1000s (CHART) 18.7 24.4 26.6 3x Russia Moscow Russia: Reaching Par in 3G in Key Regions Further Improvements Expected in 4Q13 3G network enhanced with more base stations connected via IP: 93% of base stations* in Moscow; aim to reach 100% YE13 73% of base stations* in Russ
Slide 8: Russia: Accelerated Plan of LTE Network Roll Out
LTE commercially launched in 2 regions LTE to be commercially launched in Moscow and 3 other regions in 4Q13 LTE to be launched in 12 cities with population of more than 1 million in 1H14, including St. Petersburg, Ekaterinburg, Novosibirsk, N. Novgorod etc. Launch of LTE in more regions in 2H14 if
Slide 9: Russia: Extended Roll Out of Owned Mono-brand Stores
Russia: Extended Roll Out of Owned Mono-brand Stores Roll out of owned mono-brand stores aims to: Offer better customer service Improve product offering Reduce churn Tripled the number of owned mono-brand stores in 2013 Further extension of mono-brand stores in 4Q13 Sales from mono-brand stores incr
Slide 10: Italy 3Q13: Continued Market Outperformance
(CHART) (CHART) Italy 3Q13: Continued Market Outperformance Total Revenues (EUR million) -6% YoY Excl. MTR -1% YoY EBITDA and EBITDA Margin (EUR million) -6% YoY Excl. MTR -4% YoY CAPEX* (EUR million) Highlights: Continued outperformance in a highly competitive market environment Total revenues at E
Slide 11: Africa & Asia 3Q13: Stable EBITDA Organically Despite Regulatory and Governmental Measures
(CHART) (CHART) Africa & Asia* 3Q13: Stable EBITDA Organically Despite Regulatory and Governmental Measures Revenues (USD million) -4% YoY Organic -1% YoY EBITDA and EBITDA Margin (USD million) -2% YoY Organic -1% YoY CAPEX** (USD million) Highlights: Revenue of USD 869 million, an organic decline o
Slide 12: Ukraine 3Q13: Pressure on Results Whilst Taking Measures to Improve Performance
(CHART) (CHART) Ukraine 3Q13: Pressure on Results Whilst Taking Measures to Improve Performance Revenues (UAH billion) -7% YoY EBITDA and EBITDA Margin (UAH billion) -10% YoY CAPEX* (UAH billion) Highlights: Revenues decreased 7% YoY to UAH 3.4 billion due to YoY decline in mobile revenues, primaril
Slide 13: CIS 3Q13: Continued Positive Performance
(CHART) (CHART) CIS* 3Q13: Continued Positive Performance Revenues (USD million) +7% YoY Organic +9% YoY 478 EBITDA and EBITDA Margin (USD million) +5% YoY Organic +6% YoY CAPEX** (USD million) (CHART) * This segment includes our operations in Kazakhstan, Uzbekistan, Armenia, Kyrgyzstan, Tajikistan
Slide 14: Financial Highlights 3Q 2013
Financial Highlights 3Q 2013 Henk van Dalen CFO
Slide 15: Financial Performance 3Q13
BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS BUSINESS UNITS Revenue Revenue Revenue EBITDA EBITDA EBITDA Organic FX and others Reported Organic FX and others Reported Russia +1% -2% -1% 0% -2% -2% Italy -6% +6% 0% -6% +6% 0% Africa & Asia -1% -3% -4% -1%
Slide 16: Key Components: Cash Flow, Debt, Cash and Ratios
(CHART) Key Components * LTM stands for "last twelve months" to reporting date Net Cash Flow From Operating Activities (USD billion) Debt, Cash and Ratios (CHART) (USD million) Sep 30, 2013 Cash, Cash Equivalents and deposits 5,081 Total Assets 53,051 Gross Debt 27,566 -Short-term 1,714 -Long-term 2
Slide 17: Well Balanced Debt Composition and Maturity Profile
(CHART) (CHART) (CHART) Well Balanced Debt Composition and Maturity Profile During 3Q13 Repayment of Ruble Bond by OJSC VimpelCom for RUB 10 billion (USD 0.3 billion). Available headroom under committed revolving credit facilities per September 2013: EUR 250 million (USD 338 million) for Wind RUB 15
Slide 18: Conclusion
Conclusion Jo Lunder CEO
Slide 19: Stable Underlying Results Impacted by Regulatory Measures and Market Slowdown
Stable Underlying Results Impacted by Regulatory Measures and Market Slowdown Revenues impacted by competitive pressure, market slowdown, regulatory and governmental measures Strong mobile data revenue growth Russian operational developments on track Continued outperformance in Italy High EBITDA mar
Slide 20: Analyst & Investor Conference 2014, London
Analyst & Investor Conference 2014, London September 10, 2013: VimpelCom became listed on NASDAQ October 29, 2013: VimpelCom included in NASDAQ 100 Index London The Savoy Hotel January 28th - 29th 2014
Slide 21: SVimpetcom
SVimpetcom
Slide 22: Further information
Further information Investor Relations Claude Debussylaan 88 1082 MD Amsterdam The Netherlands T: +31 20 79 77 234 E: Investor_Relations@vimpelcom.com Install VimpelCom iPad App Visit our new website www.vimpelcom.com
Slide 23: SVimpetcom
SVimpetcom
Slide 24: Appendices
Appendices
Slide 25: FOREX Development
Source: National Banks of the respective countries, Company calculations FOREX Development
Slide 26: Reconciliation Tables: Consolidated EBITDA
Reconciliation Tables * Income statement 2Q12 and HY12 has been amended to reflect classification of certain operating costs at the Group level without any impact on net income and performance of the business unit Reconciliation of consolidated EBITDA of VimpelCom*
Slide 27: Reconciliation of consolidated net debt of VimpelCom
Reconciliation of consolidated net debt of VimpelCom Reconciliation Tables VimpelCom Ltd. Index sheet Consolidated VIP Ltd. Consolidated BU Russia Russia BU Europe and North America Italy BU Africa and Asia Algeria Pakistan Bangladesh Sub Saharan Africa SEA BU Ukraine Ukraine BU CIS Kazakhstan Uzbek