Issuu on Google+

KYIVSTAR G.S.M. JSC Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2009 and 2008 IFRS (thousands of US Dollars) Three months ended March 31, 2009

Three months ended March 31, 2008

(unaudited)

(unaudited)

Net revenues Cost of services and products

360,157 (80,601)

581,545 (136,692)

Gross profit

279,556

444,853

Operating expenses

(69,064)

(94,315)

Depreciation and amortisation

(58,508)

(80,058)

(127,572)

(174,373)

Operating profit

151,984

270,480

Financial and other income (expenses), net

25,089

25,616

Income before income taxes

177,073

296,096

Income tax expense

(47,367)

(78,867)

Net income

129,706

217,229

Other comprehensive (loss)/income, net of tax

-

-

Comprehensive income

129,706

217,229

Income tax paid (1)

99,443

35,268

EBITDA (2)

210,492

350,538

EBITDA margin (3)

58%

60%

(4)

151,984

270,480

EBIT

(1)

The amount of income tax paid differs from the income tax expense by the change in the income tax liabilities at the beginning and at the end of the period and translation difference. Income tax expense represents the charge for the period, whereas the repayment of income tax results in the decrease of the accrued income tax. (2) EBITDA is defined as income before financial and other income/(expenses), provisions for income taxes and depreciation and amortisation expenses. (3)

EBITDA margin represents EBITDA as a percentage of net revenues.

(4)

EBIT is defined as income before financial and other income/(expenses) and provisions for income tax, which is equal to operating profit.


KYIVSTAR G.S.M. JSC Condensed Consolidated Statement of financial position as at March 31, 2009 and 2008 IFRS (thousands of US Dollars)

March 31, 2009

March 31, 2008

(unaudited)

(unaudited)

Intangible assets, net

149,630

260,746

Tangible assets, net

888,091

1,339,502

-

4,177

11,165

20,165

1,048,886

1,624,590

11,543

70,751

Other current assets

122,669

151,071

Cash and cash equivalents

730,314

1,268,583

2,991

2,096

867,517

1,492,501

Total assets

1,916,403

3,117,091

Shareholders equity

1,644,388

2,239,743

Long-term interest bearing debt

-

434,636

Deferred tax liability

-

36,238

Other non-current liabilities

-

36,628

Total non-current liabilities

-

507,502

182,009

369,846

90,006

-

272,015

369,846

1,916,403

3,117,091

Financial assets Other non-current assets Total non-current assets Deferred tax asset

Financial assets Total current assets

Short-term non-interest bearing liabilities Short-term interest bearing debt Total short-term liabilities Total liabilities and shareholders’ equity


KYIVSTAR G.S.M. JSC

Consolidated Statements of Changes in equity for the three months ended March 31, 2009 IFRS (thousands of US Dollars)

Share Capital December 31, 2008 (unaudited) Net income March 31, 2009 (unaudited)

Retained earnings

Accumulated other comprehensive income

Total

123,201

2,367,774

(976,293)

1,514,682

123,201

129,706 2,497,480

(976,293)

129,706 1,644,388


KYIVSTAR G.S.M. JSC Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2009 and 2008 IFRS (thousands of US Dollars)

Three months ended March 31, 2009

Three months ended March 31, 2008

(unaudited)

(unaudited)

Net cash provided by operating activities

144,527

267,748

Net cash used in investing activities

(37,910)

(58,223)

(413,499)

-

(306,882)

209,525

(5,201)

-

1,042,397

1,059,057

730,314

1,268,582

Net cash (used in)/ provided by financing activities Net increase in cash and cash equivalents Effect of foreign exchange rate changes on cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

Three months ended March 31, 2009 (unaudited) Supplemental disclosure of cash flow information Cash paid during the period for: Interest Income taxes

5,479 99,443

Three months ended March 31, 2008 (unaudited)

14,799 35,268


KYIVSTAR G.S.M. JSC

Analytical information for 2007, 2008 and the three months period of 2009 (amounts in thousands of US Dollars if not otherwise indicated)

2007

2008

2009

1-st quarter 2-nd quarter 3-rd quarter 4-th quarter 1-st quarter 2-nd quarter 3-rd quarter 4-th quarter 1-st quarter Net revenues EBITDA

456,417

519,822

590,694

581,458

581,545

636,470

696,753

550,154

360,157

271,525

314,914

341,569

323,189

350,538

378,192

424,280

263,266

210,491

202,977

245,514

261,984

242,227

270,480

299,082

344,711

186,568

151,984

198,371

242,493

266,349

250,145

296,096

333,817

388,586

267,480

177,073

62.55%

65.98%

68.95%

67.69%

71.85%

74.77%

76.47%

67.94%

85.81%

436,139

434,416

436,352

433,988

434,636

429,381

410,073

124,186

90,006

-0.12

-0.27

-0.41

-0.5

-0.63

-0.79

-0.95

-0.66

-0.50

(1)

Operating profit Income before income taxes

Equity RATIO (2) Interest bearing debt (3) Net debt/ EBITDA (4)

(1)

EBITDA is defined as income before financial and other income/(expenses), provisions for income taxes and depreciation and amortisation expense.

(2)

Equity RATIO is determined by dividing the amount of shareholder’s equity at the end of the period by the amount of total assets at the end of the period.

(3)

At period end and including fair value adjustment of hedged item.

(4)

Net debt/ EBITDA is determined by dividing the total amount of net debt at the end of the period by the amount of EBITDA for the four most recent quarters. Net debt is defined as interest bearing debt, including fair

value adjustment of the hedged item, less cash and cash equivalents at period end.


KYIVSTAR G.S.M. JSC Analytical information for 2007, 2008 and the three months period of 2009 (continued)

2007

2008

1-st quarter 2-nd quarter 3-rd quarter 4-th quarter 1-st quarter EBITDA/Net interest expenses (1) EBITDA/Interest expenses (2) Funds from operations/Net debt (3) Free operating cash flow/Net debt

(4)

Net debt/Shareholders equity

(5)

Subscriber acquisition cost

(6)

2-nd quarter

2009

3-rd quarter 4-th quarter 1-st quarter

22.0

30.6

33.6

29.6

32.2

35.1

41.5

46.9

68.1

22.6

24.4

28.4

33.2

36.5

43.7

44.6

41.9

43.0

-163%

-80%

-57%

-41%

-36%

-29%

-26%

-29%

-29%

-97%

-57%

-37%

-23%

-25%

-19%

-24%

6%

-17%

-0.10

-0.19

-0.26

-0.31

-0.40

-0.42

-0.49

-0.62

-0.39

$ 21,5

$ 28,6

$ 25,4

$ 26,8

$ 23,0

$30,4

$33,2

$27,9

$27,7

(1) EBITDA/Net interest expenses is determined by dividing EBITDA by the amount of interest expenses, net of capitalised interest and excluding interest income/expense from derivative financial instrument, for the quarter. (2) EBITDA/Interest expenses is determined by dividing EBITDA for the four most recent quarters by the amount of interest expenses, including capitalised interest and interest income/expense from derivative financial instrument, for the four most recent quarters. (3) Funds from operations/Net debt is determined by dividing the amount of net income adjusted for depreciation and amortisation expenses for the period by the amount of net debt. Net debt is defined as interest bearing debt, including fair value adjustment of the hedged item, less cash and cash equivalents at period end. (4) Free operating cash flow/ Net debt is determined by dividing the amount of the operating cash flow for the period adjusted for cash used in investing activities and dividends payments by the amount of net debt, including fair value adjustment of the hedged item, less cash and cash equivalents at period end. (5) Net debt/Shareholders equity is determined by dividing the amount of net debt by the amount of shareholders equity at the end of the period. Net debt is defined as interest bearing debt, including fair value adjustment of the hedged item, less cash and cash equivalents at period end. (6) Subscriber acquisition cost is determined by dividing the amount of advertising and marketing expenses, dealers’ discounts and fees on start packages and scratch cards, and dealers’ fees for contract subscribers connection incurred during the period by the number of new subscribers connected to the network during that period.


KYIVSTAR G.S.M. JSC Analytical information for 2007, 2008 and the three months period of 2009 (continued)

2007

2009

1-st quarter

2-nd quarter 3-rd quarter 4-th quarter

1-st quarter

2-nd quarter 3-rd quarter 4-th quarter

1-st quarter

No. of mobile subscriptions (1) :

21,959,275

22,058,889 23,058,802 23,603,986

23,686,503

23,306,966 23,456,437 23,530,545

23,052,328

- of which Pre-paid(1):

20,712,625

20,836,818 21,840,560 22,362,587

22,413,303

22,027,751 22,158,015 22,192,474

21,642,322

Annualized churn rate (2) :

Average monthly minutes of usage per subscriber (AMPU) (3) : Average monthly service revenue per subscriber (ARPU) (4) :

35,8%

32,2%

23,1%

31,8%

29,4%

31,2%

25,6%

125

137

145

148

147

159

168

26,06%

169

26,64%

152

-Total

$6.8

$7.7

$8.5

$8.3

$8.0

$8.8

$9.7

$7.7

$5.0

-Contract

$29.5

$32.7

$36.4

$36.4

$35.2

$37.6

$40.0

$30.4

$20.7

-Pre-Paid

$5.4

$6.2

$6.9

$6.7

$6.5

$7.2

$7.9

$6.4

$4.0

No. of SMS (in mln.):

1258

1133

1182

1349

1577

1428

1408

1638

1421

21

19

19

21

22

20

20

23

20

Average monthly No. of SMS sent per subscriber :

(1)

2008

End of period. Churn rate represents a percentage of the total number of churned subscribers to the average number of subscribers during a certain period. Contract subscribers with negative account balance and prepaid subscribers are considered to have churned after three months of inactivity, contract subscribers with positive account balance - after four months of inactivity. (3) Average monthly minutes of usage per subscriber (AMPU) is calculated by dividing the total number of charged minutes of usage during a given period by the average number of subscribers during that period and dividing by the number of months in that period. (4) The average monthly service revenue per subscriber (ARPU) is determined by dividing the service revenues for a given period, including revenues from roaming by the Company’s subscribers and excluding roaming revenues from visiting users and non-core revenue, by the average number of subscribers during that period and dividing by the number of months in that period. (2)


Kyivstar_public_financial_report_ENG_Q1_2009