1 / 19

7th year of NYSE listing

VIMPELCOM:. 7th year of NYSE listing. Valery Goldin Vice President, International and Investor Relations. April 2003. Second largest national cellular operator in Russia GSM license portfolio covering 137 million people 52% market share in Moscow and 28% in Russia

stasia
Download Presentation

7th year of NYSE listing

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. VIMPELCOM: 7th year of NYSE listing Valery Goldin Vice President, International and Investor Relations April 2003

  2. Second largest national cellular operator in Russia GSM license portfolio covering 137 million people 52% market share in Moscow and 28% in Russia Six-fold increase in subscriber base over the last 24 month First Russian company with NYSE listing 50% of common stock is in free float US$2.0 billion market cap (as of April 16, 2003) Benchmark for transparency and corporate governance in Russia Strategic alliances with Telenor and Alfa Group Strong financial performance Company profile VimpelCom subscriber base (mln) 2002 2000 2001

  3. Company story Commercial launch of BeeLine GSM 900/1800 network in Moscow Number 1in Moscow & 2 mlnsubscribers 1st AMPS network launched in Moscow 38 regional networks in commercial operation Listing on the NYSE Return to profitability Apr02 Dec02 July99 Jul00 May01 Sep92 Jun94 Sep94 Nov96 May99 Mar01 Jan02 Upgradeto DAMPS Closure of transaction with Telenor $225 mln public offering VimpelComfounded $250 mlnbond placement 5 mln subscribers Strategic alliance with Alfa Group & 1 mln subscribers

  4. Shareholder Structure * As of March 3, 2003

  5. 25% strategic partner since December 1998 One of the largest strategic foreign investors in the Russian telecom sector The leading telecom company in Norway, operating in the following business areas: mobile and fixed line communications, broadband services, and Internet Transfer of key management, as well as technical, operational and marketing expertise and support 25% strategic partner since May 2001 One of the largest and most diversified financial and industrial groups in Russia Proven record of successful regional business development Dominant position in its key industries (oil, banking, retail, insurance) Committed to the development of a nationwide telecom presence Complementary strategic partners

  6. VimpelCom Founders Dr. Dmitri B. Zimin Founder, Honorary President Augie K. Fabela II Co-Founder, Chairman Emeritus

  7. 1996$111 M Initial public offering 1997$114 M Secondary offering 1999 $164 M Telenor Investment 2000 $225 M Equity and Convertible Bond Offering 2001 $103 M Alfa Investment 2002 $117 M Alfa and Telenor investment in VimpelCom-R $250 M International Bond Offering VimpelCom’s Fund Raising Activities TOTAL: $1,084 M

  8. Detailed documented analysis by the Board of all related party transactions Detailed description of all items on the agenda of AGM/EGM with explanation of shareholder rights (no discretionary rights for management) Earnings releases and conference calls made quarterly Publication of press releases on all material issues Publication of annual reports Filings of Form 20-F reports (annually) Regular contacts with shareholders and industry analysts Activities To Comply With Corporate Governance Requirements

  9. Market capitalization US$ m.

  10. Russian economy growth set to continue Russian GDP Annual inflation and official ruble exchange rate Inflation, % Rub/$ 1998 1999 2000 2001 2002E Monthly income per capita $ Rub 1998 1999 2000 2001 2002 Source: RECEP, Nov 2002 & consensus estimates

  11. mln 30 100% 27 90% 24 80% 21 70% 18 60% 15 50% 40% 12 9 30% 20% 6 10% 3 0% 0 Russia Moscow Turkey Poland Czech Hungary 2000 2001 2002 2003E 2004E 2005E Rep. 2002 2005F Moscow Regions Wireless growth expected to continue Emerging Europe Cellular Penetration Subscriber Growth in Russia Source: Consensus forecasts

  12. Increase market share of corporate and higher ARPU subscribers Continue development of the pre-paid product Continue emphasis on service quality and innovation Focus on profitability as the key to increasing shareholder value Focus on loyalty and retention of subscriber base The strategy for 2003 and beyond Continue revenue andsubscriber growth in Moscow Build national GSM network Accelerate growth of non-voice and data services • Balanced and controlled development in all six super-regions • Secure licenses for the last remaining not licensed super region – the Far East • Unified business model: • Traditional VAS services • Messaging (SMS, MMS, UMS) • Infotainment (CPA) • Mobile Internet • E/M-Commerce • Corporate and high-end solutions • Brand, tariffs and products • Network rollout & operations • Customer Service • IT, Billing and Reporting • Organizational structure Regional growth, enhanced profitability and leadership

  13. Significant milestones of 2002 Extel & Vostok-Zapad Telecom acquisition License for the Urals 4 mln subscribers Stake in Beeline-Samara raised to controlling 24 regional networks in commercial operation Number 1in Moscow $250 mlnbond placement Over 400K subs in the regions Over 1mln subs in the regions Jun Jul Sep Jan Feb Mar Apr May Aug Oct Nov Dec 5 mln subscribers 2 mln subscribers 16 regional networks in commercial operation Launch of new billing system 3 mln subscribers Orensot acquisition License for the North-West $175.44 mln investment in VIP-R 38 regional networks in commercial operation

  14. Main Russian GSM players VimpelCom MTS Megafon Market share in Moscow as of Dec 31, 2002 Market share in Russia as of Dec 31, 2002 Source: www.sotovik.ru, January 04, 2003

  15. - in commercial operation - launch in 2003E - other licensed regions VimpelCom national GSM network rollout North-West Population: 13.7 mln Moscow Population: 15.2 mln Urals Population: 24.3 mln 38 Central Population: 26.0 mln 39 3 10 9 4 19 18 1 20 5 23 8 22 6 12 7 31 11 25 2 37 35 13 14 29 30 27 26 21 34 28 24 36 41 42 17 16 32 15 VolgaPopulation: 24.1 mln 40 33 SiberiaPopulation: 15.9 mln SouthPopulation: 17.7 mln

  16. 2002 financial highlights Revenue, $ mln Net Income, $ mln EBITDA, $ mln EBITDA Margin Source: VimpelCom data

  17. VimpelCom’s growing revenues and margins Net operating revenues and ARPU EBITDA Net income/loss mln $ mln $ mln $ $ % %

  18. Strong balance sheet Assets and Liabilities ($ million)

  19. Except for historical information, some of the matters discussed in this presentation, such as VimpelCom's strategy and anticipated growth of the regional mobile telecommunications market in Russia, contain forward-looking statements and are subject to certain risks and uncertainties that could differ materially from those projected. Other risks that may affect VimpelCom are identified in VimpelCom's Form 20-F and other filings with the U.S. Securities and Exchange Commission. Disclaimer

More Related