1 / 9

ALTIMO General Presentation

ALTIMO General Presentation. April 25 th , 2012.

clement
Download Presentation

ALTIMO General Presentation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. ALTIMOGeneral Presentation April 25th, 2012 This document has been prepared for informational purposes only. It is not intended to or shall be deemed to be construed to constitute an offer or agreement or to represent any binding legal obligation on the part of Altimo. Altimo hereby waves any liability in connection therewith. This document contains forward-looking statements of financial and operational performance of certain companies. The actual outcome may differ materially from these statements as a result of unforeseen developments. Altimo disclaims any obligation to make corrections to reflect future events or developments.

  2. Altimo is the Telecom Investment arm of Alfa Group A1 Group Large-scale proprietary and for-client investment in Russia, the CIS and other emerging markets Alfa-Banking GroupProvides wide range of financial services, including corporate banking, retail banking, investment banking, trade finance and asset management Alfa Asset Management The Group’s asset management arm whose clients include Russianas well as international institutional and private clients AlfaStrakhovanie InsuranceGroup Leading issuer of non-obligatory insurance in Russia X5 Retail Group N.V. Largest food retailer in terms of sales in Russia. Listed on London Stock Exchange. X5 uses a multi-format strategy to simultaneously develop three formats: soft discounters, supermarkets, and hypermarkets TNK-BP A major Russian vertically integrated oil and gas company Altimo Telecom Investment arm of Alfa Group Rosvodokanal Group Regional leader in water-supply and waste disposal operating in Russia and Ukraine Alfa Capital Partners The Group’s private equity and real estate investment group 

  3. Altimo overview • Altimo is the leading international private equity investor in emerging telecoms markets across Eurasia, that was established to hold the telecoms investments of the Alfa Group, Russia’s largest and most respected privately-owned business consortium • Its investment portfolio holds assets in Italy, Russia, the CIS, Turkey and other emerging markets of Europe and Asia • The value of Altimo’s investment portfolio is around $10bn • The companies in which Altimo is invested have a footprint in 20 countries with over 251 million mobile subscribers • Altimo has zero debt and around $3,7bn cash position to 30 April 2012 31.4%* 27.0%** Fixed-Mobile Russia UkraineKazakhstan Uzbekistan Tajikistan Kyrgyzstan Georgia Armenia Vietnam Cambodia Laos Italy Canada Bangladesh Pakistan Algeria Zimbabwe Burundi Central African Republic Fixed-Mobile Turkey UkraineBelarus 41.45% Azerbaijan Kazakhstan Georgia Moldova Notes: * Altimo holds 31.35% of economic interest and 24.998% of voting interest in Vimpelcom Ltd. ** Turkcell is owned by Alfa Finance Holdings and managed by Altimo in accordance with management contract Çukurova is challenging in court appropriation of 51% in Çukurova Telecom Holdings

  4. Altimo global footprint Russia Population: 139m Penetration: 166% GDP: $15 900 Armenia Population: 3m Penetration: 125% GDP: $5 700 Canada Population: 34m Penetration: 71% GDP: $39 400 Kazakhstan Population: 16m Penetration: 121% GDP: $12 700 Georgia Population: 5m Penetration: 91% GDP: $4 900 Belarus Population: 10m Penetration: 112% GDP: $14 900 Uzbekistan Population: 28m Penetration: 76% GDP: $3 100 Ukraine Population: 45m Penetration: 119% GDP: $6 700 Kyrgyzstan Population: 6m Penetration: 99% GDP: $2 200 Italy Population: 61m Penetration: 150% GDP: $30 500 Tajikistan Population: 7m Penetration: 86% GDP: $2 000 Algeria Population: 35m Penetration: 92% GDP: $7 300 Laos Population: 7m Penetration: 65% GDP: $2 500 Turkey Population: 80m Penetration: 86% GDP: $14 600 Cambodia Population: 15m Penetration: 58% GDP: $2 100 Pakistan Population: 187m Penetration: 57% GDP: $2 500 CAR Population: 5m Penetration: 22% GDP: $700 Legend Bangladesh Population: 159m Penetration: 46% GDP: $1 700 Country Population: CIA 2010 Penetration: ITU 2010 GDP (per Capita): CIA 2010 Burundi Population: 10m Penetration: 14% GDP: $300 Zimbabwe Population: 12m Penetration: 61% GDP: $500 Turkcell Vimpelcom Ltd. Sources: CIA World Factbook; ITU

  5. MegaFon stake was successfully sold for $5.2bn Shareholders structure before transaction • Altimo received for 25.1% Megafon stake total consideration of $5.2 bn which imply fair market x5.2 EV/ EBITDA 2011 multiple. • The transaction was structured in the following way:1. MegaFon paid $5.1 5bn dividends to all shareholders2. TeliaSonera sold its 26.1% stake in Telecominvest to AF Telecom for $1.45 bn3. Altimo sold 10.7% MegaFon stake to AF Telecom for $1.61 bn and 14.4% stake to 100% MegaFon subsidiary for $2.16bn.4. To complete the transaction TeliaSonera paid $200 mn to Altimo. • As a result of the transaction, AF Telecom will have 50%+1 share in the company and TeliaSonera 35.6%. 14.4% stake is expected to be floated on coming IPO. TeliaSonera also expects to float part of its stake and keep 25.1% stake in the Company. AF Telecom (31.1%) TeliaSonera (43.8%) ALTIMO (25.1%) 26.1% 73.9% Telecominvest 31.3% 8.0% 35.6% JSC “MegaFon” 25.1% Shareholders structure after transaction AF Telecom (50.0%+1sh) TeliaSonera (35.6%) IPO (24.9%) AF Telecom (50.0%+1sh) TeliaSonera (25.1%) 50.0%+1sh 35.6% 24.9% 50.0%+1sh 25.1% JSC “MegaFon” JSC “MegaFon” 14.4%

  6. ALTIMO Turkcell** Altimo assets demonstrate strong operational andfinancial results with total market value around $10 bn Vimpelcom Ltd. Data as of EoY 2011 Mobile subscribers mln 205.0 46.4 $, mln 23 464 5 603 Revenue $, mln 9363 1 742 EBITDA $, mln 2 553 769 OpFCF (EBITDA-Capex) $, mln 42544 9 101 EV $, mln 24 373 -1 490 Net Debt $, mln 18 171 11088 Market Capitalization* 31.35%*** 27.0%**** Altimo ownership % Altimo share market value* $, mln 5 697 2 994 * As of end of Q1 2012, without premiums and discounts ** Turkcell is owned by Alfa Finance Holdings and managed by Altimo in accordance with management contract *** Economic share, voting share 24.998% **** Çukurova is challenging in court appropriation of 51% in Çukurova Telecom Holdings

  7. Turkcell shareholding structure Çukurova* (13.76%) Alfa Finance (26.98%) TeliaSonera (37.09%) Free float (35.93%) 100% Alfa Telecom Turkey 100% Çukurova Telecom Holdings Ltd. 51%* 52.91% Turkcell Holding A.S. 47.09% 51% Turkcell Iletisim Hizmetleri A.S. 13.07% 35.93% Notes: * Çukurova is challenging in court appropriation of 51% in Çukurova Telecom Holdings

  8. A value accretive combination • Attractive transaction terms and structure • Immediate value creation step-up for our shareholders • Longer-term value creation for our shareholders • Risk profile further improved • A correct execution process • Consistent with original VimpelCom Ltd. strategy • Minority shareholders’ rights safeguarded • Good corporate governance principles applied Vimpelcom - Wind Telecom combination in 2011created long-term sustainable growth base • The right strategic move • To capture further growth in emerging markets • To strengthen ability to capture additional growth following paradigm shift from voice to data • To secure advantages of greater scale and scope ahead of further industry consolidation Expanding our platform to create long-term shareholder value

  9. % Population covered (m) 345 838 10 19 Countries Revenues(US$bn 2010) 10.5 21.4 Vimpelcom - Wind Telecom combination in 2011secured upside potential and diversified risks Emerging markets Old VimpelCom New VimpelCom Developed markets1 Population covered, 2010 Mobile subs (m) 92 181 11% More than doubling emerging market footprint Increasing scale and scope 100% 89% 345m people 838m people Russia Mobile penetration, Dec 2010 Revenue split, 2010PF Italy Other Italy 150% Russia 149% 28% 37% 23% Diversifying revenue base Ukraine 119% 77% Algeria 74% 35% Securing penetration upside Pakistan 52% Bangladesh 42% US$10.5bn US$21.4bn Zimbabwe 41% 1 Italy and Canada Source: Company information; The Mobile World

More Related