18 slides from VEON Ltd. ORD's earnings presentation, 2010
Slide 1: VimpelCom Ltd 1Q10 Presentation
VimpelCom Ltd 1Q10 Presentation 1 © VimpelCom Ltd 2010
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 strategy, development plans and anticipated performance. The forw
Slide 3: Participants
Participants Alexander Izosimov, President and Chief Presentation Executive Officer, VimpelCom Ltd will be joined by: Q&A Session Boris Nemsic Chief Executive Officer. OJSC VimpelCom Elena Shmatova Chief Financial Officer, OJSC VimpelCom Martin Furuseth Chief Marketing Officer, OJSC VimpelCom Dmitry
Slide 4: Transformational deal successfully completed
Transformational deal successfully completed • Combination of VimpelCom and Kyivstar first announced on October 5th, 2009 • Exchange Offer successfully completed on April 21st, 2010 with 98% acceptance rate • Trading of VimpelCom Ltd ADSs commenced on the NYSE on April 22nd, 2010 • The squeeze out d
Slide 5: Group Financial Highlights
Group Financial Highlights Revenue*, USD mln -50 322 344 +28.5% • Combined revenues increased to $2.5bn • Russia represents 75% of the total revenues 2,535 compared to 84% a year ago 1,919 1,973 • The leading telecom operator in the region Russia 1Q10 CIS+SEA Kyivstar Other, HQ VimpelCom OJSC 1Q10 1
Slide 6: VimpelCom Debt Profile
VimpelCom Debt Profile OJSC VimpelCom Debt Maturity Schedule, USD mln* 1,971 1,795 210 423 1,418 19 1 000 215 745 1,143 605 928 24 18 1Q10 2Q10 3Q10 4Q10 2010 2011 2012 2013 2014 2015 2016 2017 2018 - paid - due in 2010 - due after 2010 OJSC VimpelCom Debt Composition by Currency Ratios EUR, 9% OJSC
Slide 7: OJSC VimpelCom: Financial Highlights
OJSC VimpelCom: Financial Highlights Revenue, USD mln +13.1% • The core business proved its stability by a y-o-y increase to $2.2 bn in revenue 2,309 2,231 1,973 1Q 09 4Q 09 1Q 10 Adjusted OIBDA (USD mln) and Adjusted OIBDA Margin 7 0 . 0 % 6 5 . 0 % 1,088 1,052 949 6 0 . 0 % • Adjusted OIBDA margin
Slide 8: Russia: Consolidated Financial Highlights
Russia: Consolidated Financial Highlights Revenue, RUR bn 56.3 58.8 57.4 10.8 9.9 9.5 • Total revenue in Russia were up 1.9% y-o-y • Mobile revenue increased 5.2% y-o-y • Growth driven by an increase in subscriptions 45.5 48.9 47.9 coupled with stable pricing and demand for VAS and data transmission
Slide 9: Russia: Operating Highlights
Russia: Operating Highlights +3.9% Mobile subscriptions, mln • Number of mobile subscriptions in Russia increased to 51.3 mln supported by sales of 49.4 50.9 51.3 USB modems 1Q 09 4Q 09 1Q 10 ARPU(RUR) and MOU (min) 300 307 317 308 218 • Both ARPU and MOU remained stable y-o-y and 204 declined q-o-q
Slide 10: Russia: Fixed-line segment
Russia: Fixed-line segment Business Segment, RUR bn 5.8 4.8 4.5 Revenue 1 2 .0 5 4 4 0 0 9 8 0 0 1Q 09 4Q 09 1Q 10 4 7 0 Wholesale Segment, RUR bn 4 6 0 4 5 0 4 4 0 4 3 0 4 2 0 1 0 .0 336 4 1 0 4 0 0 3 9 0 317 3 8 0 317 3 7 0 3 6 0 3 5 0 3 4 0 8 .0 3 3 0 3 2 0 3 1 0 3 0 0 2 9 0 2 8 0 2 7 0 2 6 0 2 5
Slide 11: CIS: Financial Highlights
CIS*: Financial Highlights Revenue, USD mln +2.2% • Revenue increased y-o-y reaching $340 mln showing signs of a recovery 333 342 340 1Q09 4Q09 1Q10 7 0 . 0 % Adjusted OIBDA (USD mln) and Adjusted OIBDA Margin 1 8 0 . 0 0 6 5 . 0 % 1 6 0 . 0 0 6 0 . 0 % 150 155 152 1 4 0 . 0 0 1 2 0 . 0 0 5 5 . 0 %
Slide 12: South-East Asia: Planned Growth
South-East Asia: Planned Growth • Brand awareness of 67% • Market share estimated at around 2% with 1.6 mln subscriptions • Operations in 51 provinces out of 63 with 57% population coverage Vietnam • Within 1 year of operations Sotelco became number 4th in the market share by subscriptions • Active
Slide 13: Kyivstar: Financial Highlights
Kyivstar: Financial Highlights Revenue, UAH mln 2,703 2,890 2,573 • Q-o-q dynamics reflect seasonality • Gradual shift to the “Zero on-net” pricing model helped to stabilize market share • Reduction of the interconnect rates effective from the beginning of the year contributed to 566 674 493 the dec
Slide 14: Kyivstar: Operating Highlights
Kyivstar: Operating Highlights Subscriptions, mln • Introduction of “Zero on-net” pricing model in 2H09 under DJuice brand contributed to reduced churn and stabilized subscription market share 22.7 22.0 21.9 1Q 09 4Q 09 1Q 10 ARPU(UAH) and MOU (min) 43.5 39.1 38.5 425 396 • ARPU remained stable refl
Slide 15: Summary
Summary • Transformational deal created a new platform for further development of our business • Solid quarterly operational performance with sustainable margins and cash flows • Focus on market share retention and returns • Growth to return on the back of further macroeconomic recovery 15 © VimpelC
Slide 16: APPENDICES
APPENDICES 16 © VimpelCom Ltd 2010
Slide 17: Map of Operations
Map of Operations Population: 45.3 mln. Population: 4.3 mln. URS acquired: Nov ’05 Kyivstar: Apr ‘10 Acquired: Jul. 2006 Penetration: 112% Penetration: 90% GDP* 6,400 GDP* 4,500 Population: 140.7 mln. Population: 3.0 mln. Penetration: 144% Acquired: Nov. 2006 GDP*: 15,200 Penetration: 88% GDP* 5,900
Slide 18: FOREX Development
FOREX Development 2Q09 3Q09 4Q09 1Q10 Opening Average Closing Average Closing Average Closing Average Closing Currency rate Rate Rate Rate Rate Rate Rate Rate Rate RUR 33.90 32.21 31.29 31.33 30.09 29.47 30.24 29.89 29.36 KZT 151. 08 150.47 150.41 150.75 150.95 149.77 148.36 147.68 147.11 UAH 7.70 7