russia’s business response to financial crisis
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BUSINESS RESPONSE TO THE FINANCIAL CRISIS IN RUSSIA
Giricheva Ekaterina, 1WE3
The Academy of Budget and Treasury of the Ministry of Finance of the Russian Federation
VimpelCom
Contents
• Company Overview• Crisis:
• Before• During• Now
• Strategy
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
Company Overview
Key Milestones:• 1992 - registered as joint stock company
• November 1996 - First Russian company since 1903 to list on NYSE
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
Strategic Partnership
1998 2001
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
Operating in:
• Russia• Ukraine• Kazakhstan• Uzbekistan• Tajikistan• Georgia• Armenia • Kyrgyzstan • Vietnam• Cambodia
total population of
about 345 million
=
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
Before the crisis 2007 •All-time records in key financial parameters
• Armentel stake increased to 100%
• Reached an agreement on GTI acquisition • Awarded with 3G license
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
Share price
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
2008
• 100% of Golden Telecom
• 49.9% in Euroset, the largest mobile retailer in Russia and the CIS
Acquisitions:
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
2009
(40% in the joint venture GTEL-Mobile )
(90% of Sotelco)
New acqusitions
Cambodia Vietnam
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
Advertising
• reduced advertising expenses for 54,4 %
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
VAS market revenue 2009
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
+13.1%
2,2312,3091,973
1Q 09 4Q 09 1Q 10
Revenue 2009-2010(USD mln)
• Stability of the core business
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
Financial highlights 2010
• 2.535 - bn operating revenue in 1Q10
• 1.205 - mln OIBDA* in 1Q10
• 412 - mln USD in 1Q10
* - Operating Income Before Depreciation and Amortization
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
Latest changes: April 2010• VimpelCom and Kyivstar merged into a new
entity VimpelCom Limited
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
Strategy
Freeze M&A programme Strenghthen business segment Develop internet access business Expand into new business areas Drive investment efficiency
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
References
• http://www.vimpelcom.com• http://en.wikipedia.org• http://finance.rol.ru/news
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
Thank You for Your attention!