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
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Contents
• Company Overview• Crisis:
• Before• During• Now
• Strategy
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
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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
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Strategic Partnership
1998 2001
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
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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
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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
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Share price
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
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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
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2009
(40% in the joint venture GTEL-Mobile )
(90% of Sotelco)
New acqusitions
Cambodia Vietnam
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
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Advertising
• reduced advertising expenses for 54,4 %
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
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VAS market revenue 2009
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
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+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
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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
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Latest changes: April 2010• VimpelCom and Kyivstar merged into a new
entity VimpelCom Limited
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
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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
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References
• http://www.vimpelcom.com• http://en.wikipedia.org• http://finance.rol.ru/news
The Academy of Budget and Treasury, Ekaterina Giricheva, 1WE3
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Thank You for Your attention!