Investor Presentaiton
MTS
a step ahead
Appendix - Definitions and Reconciliations
Non-GAAP financial measures. This presentation includes financial information prepared in accordance with accounting principles generally accepted in the
United States of America, or US GAAP, as well as other financial measures referred to as non-GAAP. The non-GAAP financial measures should be considered in
addition to, but not as a substitute for, the information prepared in accordance with US GAAP. Due to the rounding and translation practices, US dollar and
functional currency margins, as well as other non-GAAP financial measures, may differ.
Operating Income Before Depreciation, and Amortization (OIBDA). OIBDA represents operating income before depreciation and amortization. OIBDA margin is
defined as OIBDA as a percentage of our net revenues. OIBDA may not be similar to OIBDA measures of other companies, is not a measurement under accounting
principles generally accepted in the United States and should be considered in addition to, but not as a substitute for, the information contained in our
consolidated statement of operations. We believe that OIBDA provides useful information to investors because it is an indicator of the strength and performance
of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, acquisitions of mobile operators and other
investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under generally accepted accounting
principles, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior
periods. Our OIBDA calculation is commonly used as one of the bases for investors, analysts and credit rating agencies to evaluate and compare the periodic and
future operating performance and value of companies within the wireless telecommunications industry. OIBDA can be reconciled to our consolidated statements
of operations as follows:
USD mln
Operating income
Add: D&A
Add: Impairment
Add: Tax and antimonopoly claims
Adjusted OIBDA
Operating margin
Add: D&A
Add: Impairment
Add: Tax and antimonopoly claims
Adjusted OIBDA margin
Q2 2011
Q1 2012
Group RUS
UKR
UZB
ARM Group RUS
UKR
UZB
672.2 676.9
49.2
21.3
4.2 649.7
660.2
49.3
6.6
ARM Group RUS
11.6 (284.4) 745.3
630.5 484.0
86.6
36.8
22.9 609.5 463.7
83.3
44.7
17.7
579.0 442.8
75.8
Q2 2012
UKR
79.8 (1,050.7) 8.3
44.0 16.4
UZB
ARM
579.0
579.0
500.0
500.0
1,302.7 1,160.9
135.9
58.1
27.1 1,259.1 1,123.9
132.6
51.3
29.2 1,373.6 1,188.1
155.6
72.3 24.7
Group RUS
21.5% 24.9% 17.5% 19.6% 8.4%
20.1% 17.8% 30.9% 33.9% 45.8%
Q2 2011
UKR
UZB
ARM
17.8%
Group RUS
21.6% 25.3% 17.8% 5.7%
20.2%
30.0%
Q1 2012
UKR
UZB
ARM Group RUS
26.9% (9.1%) 27.9%
Q2 2012
UKR
UZB
ARM
38.6%
41.1% 18.6% 16.6% 25.3%
26.6% (790.9)% 17.6%
33.1% 34.4%
18.5%
435.8%
16.0%
376.4%
41.6%
42.7% 48.4% 53.5% 54.2%
41.8%
43.2%
47.8%
44.3% 68.0% 44.0% 44.5% 51.9%
54.4% 52.0%
28View entire presentation