Q4 2021 VEON Ltd Earnings Call
Joining us from stay about constant jumpy.
That's realistic okay.
And that expenditure.
Thanks.
Today's presentation will give an operational update.
Wanted to buy it and should be considered con will come back.
As always we will ensure that there is ample time.
Few questions for us which is.
Safety to the end of the presentation.
Getting started I would like to remind you that we may make forward looking statements during today's presentation.
Which involves certain risks and uncertainties. These statements relates in part to the company's anticipated performance of operational guidance future market developments and trends.
<unk> negative developments.
And the company's ability to lodge, which targets information or strategic initiatives, including current and future transactions.
Certain factors may cause actual results to differ materially from those in the forward looking statements, including the risks detailed in the Companys annual report form 20-F and.
And other recent public filings made by the company with agency.
The earnings release from the presentation each of wishing to be considerations of non <unk> financial measures presented today can be downloaded from our web shops.
That didn't end up Scott.
Thanks Judy.
Turning to all and welcome to the presentation of our fourth quarter and full year results for 2021.
Before we start reviewing our performance.
Let's see.
Mr Lynch.
Great.
After the nine markets.
Sure.
This heartbreaking and deeply 72 countries as such profile price.
I would like to say that our thoughts and prayers are with everyone affected by the current situation.
This is a very sharp type world.
Top priority.
Safety and security of our employees and their families.
At the same time, our teams are making efforts to ensure service continuity that's what limitation.
And more essential needs.
<unk> ratios.
With this on top of our minds. It is important to point out that our company is currently supported by a cash position of $2 2 billion.
And by a further $1 5 billion USD of Undrawn Bank lines.
We'll continue to pay full times, an ample liquidity position all the.
Operational and financial requirements.
Let us now review 2021.
This has been a strong year for beyond across our key markets.
Key markets our formulas.
Yes.
Group revenue grew 10, 1% year over year on a local currency basis.
Closing above our high single digit segments.
EBITDA was up.
Eight 9% in local currency supported by our focus on value and focused on growth and above our minimum 8% guidance.
Opex intensity closed at 23, four percentage points within our guidance range and one two percentage points lower than prior year.
In reported currency revenues were up six 8%.
<unk> was up five 7%.
<unk> by our disciplined inflationary pricing and effective hedging policies.
In terms of quarterly performance, we delivered now six quarters of double digit revenue growth.
Closing Q4, 11, one percentage.
Local currency growth in topline and nine five percentage permit.
In a report is going to see this performance corresponds to 12.
12, 2% for revenues and sensible splits and wait and see.
Yeah.
Importantly, our performance improved throughout the year positions us well for the medium term.
Moving on to slide six.
The main driver of these results have been the progress in our digital operator strategy enabled by our <unk> investments and the expansion of digital services in adjacent markets globally.
Over the past 12 months, our <unk> users increased by 30%, reaching 97 million customers.
Now serve nearly one out of two customers with 40 services up from just low 40% 40 penetration of our subscriber base a year ago.
Over the past two years, we have increased our <unk> penetration of 28% of our subscriber base to 48.
This gives us confidence that we are on track towards our 70% penetration aspiration Indonesia.
Our one month active double and multiply 14 customers reached $61 2 million at the end of 'twenty one.
With a growth rate of 32% year on year.
In 2021, these customers generated nearly 60% of our subscriber base.
In line with this our combined data and digital revenues decreased 12 18, 2% in local currency.
Slide seven.
Q4 performance of each of our operations you can see here the summaries.
We reported encouraging results across all our operating companies, we reported solid top line performance in all the markets with double digit local currency growth in FIFA.
EBITDA were also positive across all operations.
Our group revenue growth was driven by all countries as each country reached the healthy growth momentum in 'twenty one.
Most notably in Russia.
Our turnaround.
Let me now talk about this on the next slide.
In Q4, Beeline, Russia recorded wholesale revenue growth of seven 7%.
Service revenue growth of six 6% mobile service revenue growth of 6% and EBITDA growth of four 3%.
This means for the fifth consecutive quarters of revenue growth and sequel chip with reporters with growth in service seven mobilized over 70%.
What is more encouraging is the upward trajectory within the park in the month of December deadlines, Russias mobile service steady.
Up seven.
1% Europe .
The operational foundation for this growth is our <unk> user base, which grew to 95 5 million at the end of support.
Year over year growth statements, 13%.
Or do you use is now account for 55% of our total customers in Russia.
Improving net promoter scores higher <unk> and lower churn.
Our brand renewed by us and indeed to be portfolio growth in digital services and strong partnerships have contributed to this performance.
These results, we consolidated our position as a strong number three player in the market.
Let's continue with you Craig.
Over the past few years headstart delivered consistent growth quarter after quarter and the final quarter of 2021 was no exception.
We recorded 12, 5% growth in revenues eight 7% and EBITDA.
In Q4 for the full year revenues increased 14, 3% and EBITDA is up $13 one.
This financial performance has been supported by the consistent sides and <unk> penetration across our base.
We added $2 8 million for the subscribers year on year.
Nearly $5 million over the past three years corresponding to 68% growth since the end of 2019.
In 2021, we added 3440 sites to our network, enabling the growth of new customers and executing our strategy of <unk> portal.
<unk>.
<unk> has strong profitability infrastructure leadership growth.
<unk> conversion services and the very strong brands.
And it has been recognized as the best employer orchestrate.
I would like to again, thank all our employees for their exceptional team spirit and dedication in these highly challenging times.
Yes.
On slide 10, we look at.
Pakistan Jack.
<unk> grew 13, 7% in revenue and.
In 14 states.
These results were enabled by a 40% increase in our <unk> subscribers <unk>.
<unk> penetration has now reached 48% and our customers. Our digital services are another important contribution from customer loyalty engagement and value generation.
Our Fintech service just cash.
Continued to grow in 2021 and reached $15 2 million monthly active users up 25% year on year.
The art of just customers will also be Jessica is higher than the.
Average <unk> user by more than 40%.
Our entertainment applications for Marcia was launched in October 2021 building, one just television and offering Tvs streaming and video on demand services.
Russia monthly active users reached.
Reached $1 2 million at the end of the year.
At 72% growth over just Tvs users by.
By the end of 2020.
In Q4 total watch time on commercial users plus four times, the total watch type of <unk>.
<unk> thousand 20.
As we flagged during the recent Investor day in December last year.
Not in the land of digital opportunities.
Next slide Kazakhstan.
Following the unrest in January .
We are glad to see the quick return to stability in the country.
The recently held foreign investors constantly shared by principal foci.
Demonstrate that the government's commitment to maintaining a reliable predictable and fare environment fluid vessels.
Our industry and contributes significantly to the sustainable growth of Kazakhstan.
Digital Egypt, and beeline, because it continues to work in this direction in Q4.
Our mobile and fixed network expansion continued at a steady states, including rural areas.
We connected 640, <unk> remote communities at gross Kazakhstan improvement improving the livelihoods of more than 800000 people.
What is particularly important is that the progress on this coverage.
In cooperation with our competitors sharing our network infrastructure as we connect remote settlements.
Together, we can use resources responsibly and efficiently, while reducing the combined combined carbon footprint for our industry.
The digital services that we are building on top of disconnected it delayed support bridging the digital divide in Kazakhstan.
Our strong focus on <unk> digital services, our revenues in Q4 were.
We're up 21, 1%.
And 22, 6% for the full year.
We have now reached 64% penetration of our <unk> subscribers.
The low base effect.
Growth rate of 21% year on year for 2021, our digital only second brand <unk>.
Is gaining traction through gamification and music streaming.
Proposing unprecedented openings on the markets with local and roaming services.
D TV.
All of them into a multiplatform video on demand applications supporting a loss choice of entertainment functions.
Has reached nearly 400000 monthly active users up by 48% year on year with our more than 50% higher than the average subscribers.
Bangladesh on next slides.
While accelerating gets shipped the Ford GM data bundling recorded a revenue of eight 3% year on year growth in the quarter.
<unk> subscriber base was up by 50%.
In data revenues grew by 24.
Our entertainment platform Trophy.
<unk> now has $6 4 million monthly active users an increase of.
Spines year on year, while maintaining high engagement levels.
Scott.
70% of total users are non fund revenue and subscribers.
It makes pumping gearing.
<unk>.
Our all access digital service strategy restructuring environment.
Yes.
Given the supportive macroeconomic and population dynamics, we strongly believe in the digital growth assumption.
As part of our 2022 24 plan, we intend to increase our <unk> population coverage from 70% to 95% moving.
Moving into the national operator.
This will enable the growth of our market share from its current level of about 18% to our fair share of spectrum.
With friends.
Finally, let me turn to our other markets, which are summarized here on slide 13.
In Q4 with respect to stock recorded its second quarter of double digit growth with a year on year growth rate of 10, 7%.
The turnaround in this country is the market.
Georgia, which bounced back very strongly from the heavy impact of August .
Its third consecutive quarter of double digit growth.
One 1% growth.
Could we just start grew eight 2% for joining other operations and their solid revenue growth performance.
Our <unk> subscriber base fixed on Georgia.
You're spot on.
Continued to increase.
New rates.
I will review on <unk> growth and double and multiple users.
I would like to congratulate all of our Ceos, who are appointed to their completions in 2021.
Their leadership teams for their success with turnarounds in these countries.
As far as Algeria.
Remind you that the <unk>.
<unk> sighs procedures progressing according to the shareholder group.
On Slide 14, let me give you further flavor on the progress of our digital operator strategy.
Underpinning these success stories across the board.
As of the end of 2021 double play and multiply <unk> subscribers made up 34% of our customer base.
In Q4, these subscribers generated 62% of our revenue.
Compares to 53% in 2020.
This 70 upset is the sequence for greater engagement and value generation capacity of these vessels.
Our double pay 40 users generate more than three times, the RFP single playbook.
And they also at least one of our digital services.
Also call for us.
Yes.
These are also reflected in the slide.
Churn rate nearly calls for double play <unk> users.
England playbook and goes down to one <unk>.
There are multiple multiple agents.
Let's now take a more granular look into some of our digital products.
Slide 15 is a snapshot of some of our main digital products and partnerships, which are key enablers of our digital business.
We have provided details on many of these services.
Elsewhere in the presentation allow me to expand on high level.
This was a request from all of yourself over the last call.
The fintech applications in Pakistan, Russia, Ukraine generated them.
With 40% to 60% versus both the customer basis.
Markets.
Our television and video ads and more digitally mature markets like Russia and OPEC.
ARPA uplift was around 70%.
Wild Turkey uses in Bangladesh and how much of this is in Pakistan generate around three five times to our book in place.
Finally, our self care applications continues to be the gateway to the digital engagements.
Across the group the number of monthly active users of our software applications grew 26% year on year, reaching $32 million.
This is an area that will be our focus in 2022 as the usage of our self care applications also drive up.
Sure.
<unk> portfolio of digital applications hosted the engagement of our customer base.
As you know several of these products, including Jeff's Gershon.
In our specialty focus as I know.
High potential assets under debentures pillar of our strategy.
Hydro <unk> will be joining our leadership team as of tomorrow with a focus with further fields and monetize these outstanding assets and it's following our call today welcome Carlos.
I would like to now to hand, the call over second to discuss our financial results in more detail.
Thanks, Tom Good morning, and enough time to all participants in the coming months I'll elaborate on our financial results for the fourth quarter and full year in Morton.
Let me first focus on the team numbers summarized here on slide 17.
2021 has been a strong year.
All the key financial metrics.
Positions us well for the coming year.
There were some one off items in the year and these are as all these shutdowns in the earnings release.
But almost difficult to put 21, you concluded your scanner, while our tolerances and Russia, which added 225 million years pillar two full year net profits.
And after accounting for the increase in lease liabilities group net debt decreased by 131 million units.
For full year 2021 revenue rose by 10, 1% year over year in local currency terms.
And six 8% on a reported basis.
Accelerating as we move.
Group EBITDA increased by eight 9% in local currency terms.
Five 7% on a reported basis.
The loan to note that in the fourth quarter in local currency was higher by nine 5% versus motion.
The group also reported $801 million net profit.
Versus a net loss of $350 million in 2007.
Our capex was damaged in the month year over year, but we still there one two percentage point decline in the Capex intensity ratio.
Two 4% as revenue continues to increase.
Finally, we will be smart it could be three tactical was $341 million dollar for the year higher by 38% year over year.
Moving now to Q4 performance and looking at revenue in more detail.
Slide 18.
The quarter was strong across all of our markets.
Particularly on the high growth rates and coverage from Pakistan, Ukraine, Georgia, and as Vicki stone, all delivering double digit revenue growth.
Also noteworthy is the encouraging performance from Russia.
Positive momentum has continued.
Once again this promotion was supported by strong adoption and customer book, even further increase in data usage.
He has mirrored the increase in demand we are seeing for our blending Rancho digital subs.
Okay.
Moving to slide 19, which Seth although we are a bit different from us in greater detail.
The reported particularly strong EBITDA performance in the quarter and after normalizing for the gaming cause explain Q4 last year relationships with the government on the radio frequencies.
Our group local currency EBITDA was up 11% year over year.
We reported double digit EBITDA growth in clients, our operating countries in Russia, we reported.
Four 3% year over year.
The best part of the critical the most we have seen in more than 15 quarters.
Accretion generation.
Also of particular note.
Currency was the turnaround we have seen in this mix.
After a weak performance for a number of years over the first six months. The business has delivered superb to on their own and everything Q4 was significantly higher by 35, 7% year over year.
Over the medium term the key element already to implement <unk>.
<unk> contribution from <unk>.
<unk> optimum.
On slide <unk> I would like to remind you again about political and mortgages.
To reiterate our ambition here is the aim to achieve a one percentage point improvement in group EBITDA margin each year over the next three years, which represents around 250 million units from a run rate reduction in group by the end of 'twenty 'twenty four.
While we initiated political flu during 'twenty one the first clinical benefits will be in 2022.
Our continued success in reducing our corporate overhead also made the contribution the ability this year each.
<unk> corporate overhead costs further decline by 17% year over year.
Moving to slide 21 on Capex.
<unk> net book roofing westbound further footprint during the quarter.
Capex in the quarter was lower year over year. This was largely impacted by the largest deployment in the early part of the year.
What are your Capex or one 8 billion stroller wasn't much different although less so.
<unk> declined to 22, 4% within our guided range of 22% to 24% as reported.
We reported higher revenues.
This will increase our third commercial was again the primary focus and investments.
<unk> for just over 50% of our Capex spend in the fourth.
Yeah.
Continued investments in our digital capabilities and services remains a key strategic focus throughout important and helped us to grow our digital users.
Okay.
Turning now to <unk> on slide 22.
At the group level <unk> gross debt increased quarter on quarter net debt was largely stable at $8 1 million a strong.
The key factor to note here was the higher level of cash, which increased $2 3 billion at year end.
I would also like to note that net debt excluding lease liabilities decreased to five four new instrument.
Our cash and committed Undrawn credit facilities totaled $3 7 billion units.
And highlight the strong liquidity position.
Our leverage ratio was two <unk>.
<unk> and fusion.
In line with our internal level of confidence.
Although higher than the meaningful two four times, even our dividend function.
Yeah.
We've concluded 90 billion global funding in December reached.
Low dose to keep the average tenor of our funding of three two years.
However, global trend of increasing interest rates resulted in a 100 basis points year over year.
And our average cost of debt.
<unk>, 9%.
Moving to equity free cash flow on slide 22.
The group reported $421 million, Tony could you free cash flow for the year.
$354 million after license package.
Our strong EBITDA performance throughout the year together with stable.
As we look forward over the next few years, we expect to see continued growth in EBITDA.
Able to declining capex levels, which should support free cash flow generation in the coming years.
Okay.
This brings us to slide 24, which summarizes our performance versus guidance.
<unk> has already covered our 'twenty one's results that are better or in line with our guidance on all metrics.
Looking now to the year ahead, given the current context, Iran, Russia, and Italy, which together our comfort zone.
For example, our group revenues.
Im not.
<unk> provide any guidance for the full year statement.
With regards to dividend our policy remains unchanged.
At least 50%.
After license payments.
At the same time, ensuring group leverage does not succeed to four months.
As of our limited issues too.
At the end of 'twenty one.
Continue to focus on strengthening of our balance sheet and question three its financial resources to further debt reduction in the coming quarters, and creating dividend capacity for the future.
Let me hand over to come for some closing remarks before we turn the call over to questions.
Okay.
Thank you Sir.
Let me now on slide six.
Mike.
<unk> priorities.
2021 at the start of the year.
The latest achievements.
I am pleased to report that every one of the seven points has been executed.
From <unk> network rollout targets.
Shockwave backfill.
Growth.
And double digit growth, Ukraine, Pakistan, and Kazakhstan building digital scale through targeted vertical.
Optimizing capital structure streamlining our portfolio.
Our focus on cost efficiencies and creating tower business units and crystallizing value.
In terms of the operational foundation of our business.
We have every reason to be positive.
As steel.
And the business potential.
We look forward to continuing our strong execution in 2000.
Second mentioned.
The current macro ambiguity is.
Our largest operators.
Like the <unk> auction.
Therefore, we will not be sharing any guidance at this stage.
With that I would like to thank you for your attention and turn the call over to the operator for questions operator.
Yeah.
Okay.
Hi, Allison.
Hi can you hear me.
Yes, hi, thank you for the call.
I was just wondering just sort of more general question I guess around capital allocation in the current environment.
Obviously, you've got a lot of challenges in a couple of your markets.
How do you balance between investing in the network, but at the same time, keeping your leverage in check obviously with the currency moving against you and with dollar on your desk on your balance sheets I'd just be interested to hear sort of big picture thoughts about how you.
How are you sort of develop your strategy for capital allocation.
And then just in terms of your.
Youll Russian senior restaurant company accounts for the nine months period, you haven't paid a dividend up to HQ.
I was wondering if there had been a dividend paid subsequent to the nine month period over the last quarter and if so could you sort of give an indication as to how much that is and how much cash you actually have at HQ at the moment.
And then final question final question, if I can.
Just in terms of the equipment suppliers, who your key vendors at the moment and I guess, Russia, and Ukraine would be key.
And how do you get access to that equipment, how do you pay for that equipment and any sort of context, you can give around those Jonathan just obviously, it's a very fluid situation. So I appreciate that but if you could give any comments around that that'd be helpful. Thank you.
Thank you Alastair.
As you can imagine we have a capital allocation methodology based on collecting deals potentially the countries of capital as well as externally.
Return on investment.
<unk>.
And Luckily a flood.
Having said that.
One of the reasons why we did not provide the guidance. It's obviously a change of the dynamics, which will require us to adjust the investments that we will be making in our business in line with the progression.
<expletive> regiments to patients.
I would like to keep in mind that our.
Our disciplined policy.
Making sure that we create.
Cash.
We will continue to control our cash balances will be of high priority over the next couple of.
That's helpful.
And just a couple of things regarding because U S capital allocation. In addition to the impact on leverage.
As you have seen from the presentation, 50% roughly 50% of the leverage is in the U S.
And fourthly around 40 41 percentage points.
So in case of any depreciation of local currencies industries Google.
The impact on leverage positively because our depth in global GDP.
Lower among U S.
What's the impact.
Well that can move to question number two you asked about the <unk>.
Cash.
Position of the group.
We have roughly $2 $3 billion of cash.
Also reached one 6 billion in each group and almost 100 per sample that potentially is in hard currency, mainly U S. Dollar.
And all the cash is in Europe European or U S. Banks. So they are two extra Sabine for each group.
$1 6 billion even stronger.
On top of that.
We had a bond maturity, which will be due tomorrow.
And for the <unk> 17, industrial and plus accrued interest, which is around 430 billion in solar.
In order to keep our cash cash reserves.
For the future on loans, we decided to utilize the Rcs that you havent change into the clinical sensitivity and hopefully a video.
The repayment of the bonds tomorrow rooms in Yorkshire facility, which will be amongst the gain of $1 6 billion.
Cash available at each piece for the future.
Okay.
Yes regarding the supplies on the payment terms of course for the big vendors, we had specific agreement.
For each pump.
Sorry.
There are different.
Different tenors.
But as you can guess.
The.
Negotiating with our key vendors to get favorable favorable payment terms.
And if it turns per member to bundle concept to country more partnering activity.
Negotiating vendor.
Vendors as a long term strategic partner with them to prolonged dependent in terms of our Q1.
And that was the second major currency.
With respect to that major enabler for us being a group allows us to allocate capital effectively in place.
With rates and access to markets.
That is our most valuable especially.
Right.
Thank you very much.
Okay.
Thank you Scott.
Those are.
Yes, hi, everyone. Thanks, Thanks for the call and a and B.
And the opportunity to ask questions I have a couple for you about that.
First one just wanted to.
I understand that.
Thrift issue prevent you from.
They are making payments or sourcing equipment in the Ukraine or Russia, that's one.
Second.
Just wanted to get back to the Algeria put option do you have.
Any update on the on the timing and can you. Please guide us to what magnitude of cash include do you expect.
Third question.
It would be on the.
Russian debt what percentage of it is is floating rate.
It is a significant percentage in floating rate how fast does it adjust to the.
Today to be kind of.
Short term rates because of that increased 20% in Russia and then the last question.
In which country is most of your cash held thank you so much.
Thank you Sir second go ahead, okay. So I think.
You have multiple questions, okay, if I understood it.
First question was about Swift and the potential impact on us regarding payments and sourcing improvements.
And just to my knowledge just before the start of the Snoopy.
Functioning.
So.
Actually we have multiple bank accounts multiple banks and.
And those banks are hitting.
We have bank accounts and multiple banks in the ruble Euro U S. Dollar ended the different currencies. So we have alternative routes.
Two to move the cash in and out of countries.
So as you as you know in Ukraine, there is kept the controls in place.
By the Central Bank between so there is no cash outflow installer or new auto Ukraine.
That's the only one that we have subsequently.
For the moment.
But as I said, we have different bank accounts in different jurisdictions and different different currencies. So we are in discussions with our relationship banks.
From from different countries, how we can mitigate independent suites.
The changes.
Changes industry regulation, but so far.
Function.
And keeping our G&A property.
Comment on that regarding that.
Russian ruble debt.
In mobile we have bank loans and also bone.
As you know all the bonds that in ruble theyre all in fixed fixed rates, so that their clients desire.
Bank loans that we have a mixture of floating.
Interest rates and basically we have numbers.
The Russian banks.
At the moment and majority of the depth Bank bank debt.
<unk>.
Our floating measured annually.
Community Bank debt, but if you combine all the depth, including the bonds the maturity on the debt.
Right.
And as you mentioned the Central Bank, Russia improvements benchmark consists of 20% today.
I think the best of that increased rate will be by the end of March.
The difference between peak, depending on our optimistic the bench.
The impact on the interest.
Tim.
After Q2.
Sure.
Maybe I should say kohl's.
More than $60 million.
Thank you satcom.
With regard to your Algeria question.
All procedures connected to the exercise with our put option and Algeria are being performed by both parties in accordance with our shareholders' agreement.
As a matter of fact, as we speak the processes further progressing and it's slight delays everything is on the right.
Are those the activity visibly.
Carryover business.
Please.
Back to the closest and reaches as one second.
I won't be able to.
At this stage.
<unk>.
Susan.
And that use of our cash is potentially in Europe .
And I know many of you have lots of questions around sanctions are lifted.
What I can say in this specific area.
We are continuously monitoring the sanctions regulations, which are being issued by various jurisdictions.
In order to ensure we are complying with them.
And I would like to also highlight that is it at the shareholder level.
As a public company with no controlling shareholders. So we do not expect any flaw sanction this coming from.
As well, but this is a fluid situation. So we will be continuously monitoring and of course, you know keeping.
If necessary the public informed about divestments. Thanks.
The next question is from Nicholas Thank you so much.
Thank you Simon.
Hi, Hi, good afternoon. Thank you for your time today and thank you for taking questions.
Just one quick question on you ideally key to get cash out of fresh shaft construction, there is bringing cars in Russia, because obviously almost 50% of your views are coming from Russia.
So Nicholas in Russia, we are we have been already in an investment cycle. So upstream, England cash from Russia that has not been a priority for us at this particular Nonslip satcom. Please.
Yes.
In our plans for this year there is no.
Project.
Up streaming from Russia, we only have some intercompany loans between <unk>, Russia.
From that there is no dividend upstream.
Commercial discipline.
Okay.
Yes.
The next question is from Kevin Lloyd.
Okay.
Hi, Dan Thanks for the call.
I also have a couple if that's okay.
You recently announced that you've taken out learnings right.
Banks, which are now sanctioned.
Can you talk a little bit about.
What might happen with the science and your ability to keep borrowing.
In Russia.
The second thing is can you just remind us following on from the Russian cash from a cash flow funding other operations for the full year and what your expectations are to be able to get cash obviously around the operations.
And.
And alluding to your comment earlier that you don't expect the channel them.
To be an issue is that because.
Next one.
Less than 50%.
And the rest is.
Assisting with an independent board.
Thank you.
Let me start with the last question and then I'll be absorbed satcom.
Rightly summarized.
Onto the controlling shareholder.
A independent board in place so that's basically.
Okay.
Okay.
Good afternoon.
Yeah, Let me I want to give us the details shall also.
Unless above smooth scissors question on home floating interest rates and the impact of our overall postpone them.
Currently we have.
As I said launched in global.
The impact from the assumptions so there will be in place.
<unk> loans from <unk> Bank.
Amounting 200 tends to be done with it.
Depending on what speed you use it's around $1 5 billion and this probably before equal to the depreciation of the currency.
So these banks are suburban.
<unk> and our products.
The way that the REIT is function of it is as of today.
We can borrow.
Cash from two out of three banks that adjustment.
For the <unk> Bank.
Our loans from ECB banking amounting 30 billion.
Which we have refinanced in February this year.
And most promo.
Among should be repaid.
Two of ETB to MTB with M D.
Line.
As British functions, which will be probably forever.
March.
That's 120 billion rubles.
So for <unk> you mean.
Also please tell me.
I would appreciate it if people don't push ourselves to mute it cannot speak satcom.
So after repaying the TBA by them, though March SPR dysfunctions origination our exposure or borrowing from two Russian banks will be 90 billion ruble.
And most of it will be slowly however.
I want to link this to Susan's question.
Question.
Assuming that.
They will repay BTB 30 billion by the end of March our coastal depths, which is currently six 9% overall group cost of debt.
That is 20%.
Interest rates in Russia. This poster that we don't increase to seven 5%.
So the immediate impact on our cost of debt will be 60, 60, Bips Rockville, which is thought to be impacting us.
April this year, because there is a gradual transition.
Maybe interest rates debt.
Looking at my answer for the one for the first question is regarding the second.
As I mentioned, Russia.
Within itself cash flow sufficient we are.
Not.
<unk> cash absent from Russia is in dividends.
Apart from Russia, we don't see any.
The issue of assuming cash in for example, perfect from participating.
Constance <unk> premium.
Yes, so the only question Mark as you bring in the unit two maintenance here, what's going to happen in Ukraine.
As I said at the beginning we have $1 $6 billion cash at the HQ.
And we want to keep this as our cash flow.
For the future.
And maybe just.
You were not planning to Russia.
Russia with vivo.
Yes, that's correct Chris.
Thank you and everything.
Yes. Thank you. Thank you very much okay. Thanks. Our next question is from Ivan Kim.
Yeah.
Hello, Thank you very much for their pushing chip.
Can I just follow up on this timeline or.
No cash upstream from Russia. It just for this year or it's also kind of longer term plans, so insurance 23 as well.
My second question.
Pakistani spectrum.
I just wanted to make sure.
So youre going to go with us.
Where your page 2% upfront.
You delayed.
The other 60% until installments over five years.
And then lastly on the dividend.
So just based on the forward.
The way you formulated in the press release do I understand correctly that you wouldn't have paid dividends regardless.
The war and what's going on right now.
Based on your leverage being in Boston <unk> four times. Thank you very much.
Let me start with Pakistan.
Continue.
Unlike the last.
License renewal this time actually the license renewal process is very predictable.
As expected, we will be paying 50% cash by the end of July and the rest will be over years.
In line with us.
And predictions.
There won't be any surprises perspective.
For your first question I think it's just too early to comment on 2000 and create cash up streaming.
So projected industrial if the deadline is precise items for the dividends regarding your 2021 year understanding. This correct. They are not going to pay dividends was 21, four subject to Florida in general.
Thank you Kim Ann for hub.
Just another question so on towers do plan still an impella shell shale.
Pakistan.
Bangladesh given the macro items that was high rich. Thank you very much.
So we believe the.
So that's its.
Its value crystallization.
It.
Is still valid.
We are working actually on Bangladesh.
Pakistan, Kazakhstan in terms of growth.
Taking these assets due to the markets.
We will probably be slower with our intent in crane.
Our project of crystallizing, the value of monetizing those assets and de layering, our telecom operations, which develops.
Thank you very much thank you.
Next question comes from scale.
Rich.
Hello, Hi, good afternoon, everyone and many thanks for the presentation and I had two follow up questions on the financing side I think of Maine.
So firstly could you just and perhaps give us a bit more specific.
Is that the information on how much you've been able to upstream some pakistan and over the past year and whether you've been able to get anything from Bangladesh and just in terms of the Pakistan macro situation would you expect to be able to upstream and <unk>.
And the second question was and I noticed your earlier comment about planning to draw on the Rcs and to pay the bond is just smile and can I, just confirm and do you need to take any of critical data.
I didn't catch a comfort that that's 100% available to you Anthony.
Thanks.
Yeah, Bangladesh I'm assuming.
Dividends from Bangladesh, where at the moment because the investment pace.
For Pakistan. Our company there is distributing dividend is 100% of network considerably. So we never have any problem in outstanding cash also Pakistan through the last couple of years and we don't expect any problems.
She does though.
The amount of dividend of streaming.
I mentioned once we close the numbers, Pakistan, probably 200 for something Thats available.
Available for the shareholders.
Rcs drove down of course, we have initiated the dropdown of the question.
Whereas in the last week.
And we haven't faced in Asia optimal.
I can only confirm that we utilized our chairman SGD transferring all of them.
Thank you.
Is it possible to ask one follow up and my Dad I. Appreciate your earlier comments about there being no controlling shareholder.
On.
And I guess I could say this touch though some concerns in the market.
Sure.
Okay.
<unk>, obviously seen some comments from the EPA, we can debate that.
Central functions onto partner has led to one and would you be able to give us any more color on the grid and shareholdings at the restaurant level and so that the market itself.
Yeah.
I think really.
As this attrition evolves, we need to be a little bit patients in terms of making.
Stipulations around this topic, so I will ask your permission to wait for a while so that we see everything in rupees.
Back to you.
Thank you very much.
Cost questions from attendees.
Got it.
I Hope you can hear me.
Two questions you mentioned that the cash holdings that you have are in Europe , which you mentioned would you mind sharing which countries in which banks.
Those accounts are with.
And also on which banks are behind the Rcs that you are drawing.
To pay the bonds tomorrow. Thank you.
Unfortunately, I cannot answer my other question.
I can try to answer yes.
Paul.
First of all we have multiple bank.
Around six to 10 banks over in Europe European countries, what I can see you.
EU countries and some of them are in the U K.
So we don't need the bankruptcies.
Austria, France again, we have 10 RFP in France.
Yeah from the U S.
You came in.
Asia.
NIM.
Of the 10 banks across the globe.
Great. Thank you, but just in terms of the bank.
Banks in Europe that you have the accounts are any of them some of the Russian banks.
And help us subsidiaries that potentially on an under sanctions for the cash that we are keeping our cash to build is there is no rush environment.
Okay. Okay, great. Thank you.
I want to thank you all of yourselves again and.
Looking forward to update.
And next quarter. Thank you very much and we will close the call here today. Thank you.
Okay.