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ALTIMO General Presentation

ALTIMO General Presentation. June 2011.

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ALTIMO General Presentation

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  1. ALTIMO General Presentation June 2011 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 Russian Technologies Investment and development of promising Russian commercial and consumer technologies Alfa BankWide 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 Alfa Capital Partners The Group’s private equity and real estate investment group  AlfaStrakhovanie InsuranceGroup One of thelargest non-obligatory insurance companies in Russia X5 Retail Group N.V. LSE-listed X5 Retail Group N.V. is the largest food retail company in Russia in terms of sales. X5 Retail Group N.V. includes the supermarket chains Pyaterochka and Perekrestok. The company uses a multi-formatted strategy to develop three formats simultaneously: soft discounters, supermarkets and hypermarkets. TNK-BP Russia’s third largest vertically integrated oil company in terms of production Altimo Telecom Investment arm of Alfa A1 Group Large-scale proprietary and for-client investment in Russia, the CIS and other emerging markets

  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 Russia, the CIS, Turkey and other emerging markets of Europe and Asia. • The value of Altimo’s investment portfolio exceeds $16bn. • The companies in which Altimo is invested have a footprint in 23 countries with over 300 million mobile subscribers. 31,4%* 25,1% 13,22% Fixed-Mobile Russia UkraineKazakhstan Uzbekistan Tajikistan Kyrgyzstan Georgia Armenia Vietnam Cambodia Laos Italy Canada Bangladesh Pakistan Algeria Zimbabwe Burundi Central African Republic Fixed-Mobile Russia Tajikistan Mobile Turkey UkraineBelarus 41,45% Azerbaijan Kazakhstan Georgia Moldova * Economic interest. Voting interest 25%.

  4. Vimpelcom Ltd. Significant improvement of financial results and substantial growth of net income: Vimpelcom Ltd. closed the WIND transaction and created the world’s sixth largest mobile telecommunications provider by number of subscribers with operations in 19 countries. Former shareholders of Wind Telecom received 325 639 827 newly-issued Vimpelcom Ltd. common shares, 305 000 000 newly-issued VimpelCom Ltd. convertible preferred shares, $1 495 million in cash and shall receive certain assets to be demerged from the Wind Telecom group and transferred back to Weather Investments II. Vimpelcom Ltd. completed the acquisition of 78% interest in Lao Millicom, a cellular telecom operator with operations in the Lao PDR. The remaining 22% of Lao Millicom is owned by the Government of the Lao PDR. The agreement to acquire Millicom was signed in September 16th, 2009, but completion of the transaction has been delayed until the endorsement of the Lao government has been recently received (April 2011). Vimpelcom Ltd. have paid approximately $1 090 million dividends for 2010 results. This corresponds to $0.80 per ADS. Alexander V. Izosimov, has decided to step down as of June 30th, 2011 and the Company’s Supervisory Board has unanimously decided to appoint its current Chairman, Jo O. Lunder, as the new CEO of VimpelCom. Augie K. Fabela II was unanimously proposed to serve as the new Chairman of the Supervisory Board. Mr. Khaled Bichara was appointed to position of COO of Vimpelcom Ltd. OJSC Vimpelcom acquired 90% of “New Telephone Company”. Vimpelcom will launch a mandatory tender offer under Russian law to acquire the remaining 10% of the outstanding NTC shares. Completion of the tender offer is expected to occur in the third quarter of 2011. The acquisition price for 100% of NTC shares is based on an Enterprise Value of US$ 420 million. Vimpelcom Ltd. highlights 4

  5. 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 Combining Vimpelcom and Wind Telecom (1/2) • 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

  6. % Population covered (m) 345 838 10 19 Countries Revenues(US$bn 2010) 10.5 21.4 Combining Vimpelcom and Wind Telecom (2/2) Emerging markets Current VimpelCom New VimpelCom Developed markets1 Population covered, 2010 Mobile subs (m) 92 181 11% More than doubling emerging market footprint Increasing our 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 our 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

  7. Megafon • Megafon highlights • Megafon reported excellent financial and operational results for the full year 2010: • Megafon has significantly strengthened its market position in Russia compared to main competitors – MTS, Tele2 and Vimpelcom due to exposure on fast growing data market. • Megafon successfully utilizes mobile data market growth: Company has the widest 3G network in Russia with around 25 000 3G base stations, and corresponding data revenue market share around 44% among BIG3 operators. • Megafon acquired one of the leading regional broadband operators NetbyNet gaining strong broadband business positions in Moscow. • After successful integration of Synterra’s backbone, Megafon have the widest backbone network after Rostelecom – 110 000 kilometers and continue to invest in future data market growth. • Megafon opened the largest data center in Russia in Samara. This key infrastructure unit allows Company to provide cutting-edge cloud computing and other information services to international and domestic customers and partners. • The 3-month active subscriber base in Russia, Tajikistan, Abkhazia and South Ossetia had reached 57.1 mln subscribers at the end of May 2011. 7

  8. Turkcell Turkcell highlights • In spite of the challenging market conditions, together with pressure from both the regulator and its competitors, Turkcell has continued to maintain its number one position in terms of subscribers, revenue and EBITDA-market share. • Turkcell mobile data subscribers grew 2.4 times up to 2.3 mln subs as of the end of 2010. Mobile internet revenue constituted 20% of total Turkcell revenue in 2010. 3G network rollout is on schedule and is expected to be the main driver for revenue growth in the nearest future. • Management change at the end of 2010 in Ukrainian subsidiary Astelit led to significant increase in EBITDA margin to 24% in Q1 2011 (compared to 7% in Q1 2010) and first cash-flow positive quarter for the last years. • Altimo seeks the successful resolution of its litigation against Cukurova Group. The decision of the Eastern Caribbean Appeal Court is awaited in July 2011. • Altimo and TeliaSonera make efforts to improve Turkcell’s corporate governance changing the current Chairman Colin Williams who apparently sides with Cukurova Group with a heavy-weight international telecom expert. These efforts are blocked by Cukurova Group and Colin Williams. 8

  9. Assets capitalization level (US$bn) • 100% • Despite lengthy global economic turmoil Altimo’s assets capitalisation level increased twofold to $16 bn during the last 5 years. • Vimpelcom-Kyivstar merger and acquisition of Wind Telecom put strong pressure on Vimpelcom Ltd. capitalization that resulted in ‘flat’ assets capitalization Y-to-Y. 9

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