VEON Ltd. · NASDAQ:VEON
VEON — VimpelCom — Merger or Acquisition (November 2015)
16 slides from VEON's merger presentation, Nov 27, 2015
Slide 1: Strengthening our leadership position in Pakistan
Strengthening our leadership position in Pakistan A&I conference call November 26, 2015 Jean-Yves Charlier – VimpelCom CEO Andrew Davies – VimpelCom CFO Vincenzo Nesci – GTH CEO Gerbrand Nijman – GTH CFO
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts, and include statements regarding among other things, the expected timing of com
Slide 3: In-market consolidation in Pakistan – executing on strategy
In-market consolidation in Pakistan –executing on strategy
Slide 4: Mobilink and Warid to merge, strengthening leadership position in Pakistan
Mobilink and Warid to merge, strengthening leadership position in Pakistan Strengthening leadership position in Pakistan Largest combined footprint and customer base of 45 million Largest network, with best quality and leading in high-speed data with almost 5,000 3G and 4G/LTE sites Delivering innov
Slide 5: Transaction rationale
Transaction rationale A leading operator in Pakistan telecom market
Slide 6: A leading operator in the Pakistan telecoms market
A leading operator in the Pakistan telecoms market Notes: 1 As of September 2015 2 after decommissioning
Slide 7: Superior customer experience
Superior customer experience Best coverage of over 80% population by 2G High quality of customer services Simple and transparent pricing Enhanced service delivery through digital platform To become #1 in NPS ranking, leveraging from the current solid position: Mobilink #2 Warid #1
Slide 8: New revenue opportunities
New revenue opportunities Owning and winning in the High Value and the B2B segments: Leading position in high-value and postpaid customers Serve corporates with full enterprise solution and M2M Digital & MFS leader: Mobilink the fastest growing MFS player in the market Mobilink MFS revenue 2.7% of t
Slide 9: Best-in-class mobile network
Best-in-class mobile network Our plan is to enhance network capacity and quality of service Targeted network investments in quality and coverage Network consolidation through migration of customers and integration of network elements Decommissioning of overlapping sites within two years of closing A
Slide 10: Identified cost synergies
Identified cost synergies - total run-rate of USD 115 mln1 Market facing Integrated customer service & customer operations Efficient channel and distribution model Site decommissioning Network & IT Common IT platforms SG&A Scale impact Optimized organizational structure More than USD 500 million NPV
Slide 11: Enhanced profitability and cash generation
Enhanced profitability and cash generation Notes: 1 Including run-rate Opex synergies only 2 Defined as EBITDA – Capex (excl. licenses) 3 Including run-rate Opex and Capex synergies
Slide 12: Key transaction terms
Key transaction terms VIP/GTH, though PMCL Mobilink, acquires 100% of the shares of Warid Telecom in exchange for the Dhabi Group shareholders receiving approximately 15% of the shares of PMCL Mobilink No cash contributions expected from VimpelCom/GTH or the Dhabi Group shareholders Conditional on f
Slide 13: Transaction structure
Transaction structure Step 1 – share acquisition Step 2 – legal merger
Slide 14: Summary
Summary Pakistan transaction: yet another step in strategy execution
Slide 15: Slobal Telecom SVimpelCom
Slobal Telecom SVimpelCom
Slide 16: VimpelCom/GTH accounting implications
VimpelCom/GTH accounting implications Upon closing of the share acquisition The acquisition of Warid will be accounted for as a business combination under IFRS The fair value of Warid’s assets and liabilities will be taken over into the VimpelCom/GTH consolidated balance sheet as of the date of clos