DNIPROPETROVSKDNIPROPETROVSK ALFRED NOBELALFRED NOBEL UNIVERSITY UNIVERSITYDEPARTMENT OF INTERNATIONAL FINANCE AND DEPARTMENT OF INTERNATIONAL FINANCE AND

BANKINGBANKING

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Contents Introduction Chapter 1. THE TEORETICAL ASPECTS OF FINANCIAL RESOURCES OF THE COMPANY The essence of the financial resources of the enterpriseSources of formation of financial resources of the enterpriseAssessment of international approaches for the efficient use of financial resources of the enterpriseConclusions to chapter 1Chapter 2. ANALYSIS of FINANCIAL RESOURCES MANAGEMENT of JSC «Kyivstar»2.1. Organizational-economic characteristics of the activity of JSC «Kyivstar»2.2. The analysis of the sources of formation of financial resources of JSC «Kyivstar»2.3. Research of efficiency of formation and use of financial resources of JSC «Kyivstar»Conclusions to chapter 2CHAPTER 3. IMPROVEMENT OF FORMATION OF FINANCIAL RESOURCES OF JSC «KYIVSTAR»3.1. The application of methods of formation of financial resources for JSC «Kyivstar»3.2. Optimization of formation of financial resources at JSC «Kyivstar»3.3. The positive aspect of the introduction of IPO at JSC «Kyivstar»Conclusions to chapter 3CONCLUSIONS AND RECOMMENDATIONSLIST OF THE REFERENCESAPPENDIX

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•Purpose of research - analysis of methods and practical tools of enterprise financial resources management .

•Object of research - financial reserves of the enterprise.•Subject of research – the given work is the complex of

economic relations of JSC «Kyivstar», related to forming, application and management of enterprise financial resources.

•Research base - JSC «Kyivstar.

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Fig. 1. Components of enterprise financial resources

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Fig. 2. Sources of forming the financial resources of company

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Financial resources of enterprise

Start-up funds Equity funds

Mobilized at the financial market

Distribution of money receivables

Authorised capital

Receipts Profits

A gross and net sales receipt Depreciatio

deductions

Sales revenue

Other types of receivabless

An income is from financial resources

Investment returns

Security recepts

Credit investments

Dividends and interests

Financial resources from shareholdrvis

Insurance compensations

Budgetary subsidies

Other types of resources

• The company started in Ukraine in 1994. The first call was made in on December, 9, 1997 in a mobile communication network «Kiivstar». JSC«Kiivstar» joined the world of computer-integrated telecommunication companies of Vimpel Com Ltd. (Netherlands).

• Today JSC «Kiivstar» has over 25 million users and about 800 thousands subscribers of the wide-range Internet service.

• The mobile network JSC «Kiivstar» is one of the best in Europe, and covers all large and small cities of Ukraine, covers over 28 thousands of rural settlements, all basic national and regional routes, most marine and river coasts. The head office is in Kiiv.

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Fig. 4. Users of mobile communication of JSC «Kiivstar», million people.

Fig. 5. Decline of average account of mobile communication of JSC «Kiivstar».

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Fig. 6. Analysis of balance liquidity of JSC«Kiivstar» in 2011-2013Code Name Description 31.12.2011, th.hrn 31.12.2012, th. hrn

31.12.2013, th. hrn

A1 Most liquid assets Monetary resources 889 450 1 369 855 641 911

П1 Most urgent obligations Account payable 1 202 274 1 379 200 1 331 723

A1-П1Liability payments obligations

of П1Plus well, minus badly -312 824 -9 345 -689 812

A2 Liquid assets Account receivable 3 885 846 4 125 004 1 357 247

П2 Short-term liabilities Short-term loans 93 545 50 105 57 684

A2-П2 Liability payments of П2Plus well, minus badly

+3 792 301 +4 074 899 +1 299 563

           

A3 Slow liquid assets Reserves 1 163 720 1 013 979 622 133

П3 Long-term liabilities Long-term loans 31 271 0,00 0,00

A3-П3 Liability payments of П3 Plus well, minus badly +1 132 449 +1 013 979 +622 133

           

A4Quickly sold assets

Fixed assets 8 434 523 8 366 730 8 847 561

П4 Regular liabilities Eqnity capital 13 046 449 13 446 263 10 079 445

A4-П4Liability payments of П4 Plus well, minus badly

-4 611 926 -5 079 533 -1 231 884

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SWOT – analysis

О - opportunitiesA market share 45,1 close relationships with consumers;The first and most stable company in the industry;Effective advertisement methods;Introduction of 3 - G connection;A company is the participant of charity organizations;Kiivstar is a leader on the market of Ukraine;

Т - threatsConsiderable level of competition;Instability of political situation in Ukraine preventing of company planning;Lack of investments as a result of crisis;Low purchasing power of consumers through instability of economy;Competitors offer almost free tariffs;

S - strong sidesHigh quality of connection;Effective sales promotion policy;Highly skilled personnel;Insignificant personnel turnover. Innovative new services idea;Permanent improvement of connection and other services;High level of profitability;

2 - B, D is an increase of sales level and by means of relationships with consumers;3,4 - Н innovative ideas on creation of the best tariffs and services in general;1,7 - D, E is additional emission of shares through attraction of investors;3,5 - An increase of market share due to personnel skills;

3, 4, 5, 6, 7 - Due to the best indexes and innovative ideas to improve indexes at all articles;3, 6, 7 - B, C is prognostication and development of the best ways of development of company, reduction of influence of unstable situation in a country on a company;3, 5, 6 - D, E is development - innovative and accessible types of services and connection;

W –weak sides1. Service sales decline;2. Reduced demand for quality connection, increased demand for the cheap low-quality connection;

1 - And, B, C, D is an increase to the sales level and stability of company, advertising these and other pluses;2 - B, C is a revision and perfection, innovations in relation to services that is given;1, 2 - D, E is an increase of amount of clients (increase of demand of service of the company due to introduction 3 - G connection) ;

1, 2 - And, Е is diagnostics of financial position and money streams for the planning of expenses and corresponding incomes1 - D is flexible price policy for the demand increase;2 - In, С - an increase of data base is a large chance to see minuses and delete them, or convert into pluses

Fig.7. SWOT –analisis of PJSC «Kiivstar»

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Fig. 8. PJSC «Kiivstar» bought a license back

It cost 2,7 mlrd.grn, and consequently, the company needs attraction of loan capital, for coverage the license charge and buying new technological equipment.

Foreign experience of financial resources formations

based on the mechanism of public placing of securities. It is

the first suggestion about the sale of emission securities of

the given JSC «Kiivstar», addressed to the unlimited circle

of people and carried out in the process of issue of securities

by the opened subscription (primary public placing) on the

auctions of stocks exchange and other organizers of trade at

the securities market.

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1. Making the complex analysis and estimation of external and internal

environment factors of JSC “Kiivstar" by means of SWOT- analysis.

2. Grade system estimation of the degree of authenticity of the using of the most

expected possibilities and threats for JSC “Kiivstar“.

3. Prognostication of the necessary volume of financial resources by the

algorithm, offered by Blank І.О.

4. Following the strategy of the cost cutting.

5. Financing at the expenses of the attracted and loan capital.

6. Development of measures of stimulation of increasing net cash flow from each

type of activity.

7. Introducing modern approaches of formation and using financial resources,

learning from foreign experience.

8. Public placing of securities.

OPTIMIZATION OF FINANCIAL RESOURCES FORMING FOR JSC «Kiivstar»

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- financial resources forecast.

- providing attracted and borrowed capital financing.

- public placing of securities.

The company management must reduce the borrowed capital cost and reduce the equity capital cost.

CONCLUSIONS AND RECOMMENDATIONS

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