1. DNIPROPETROVSK ALFRED NOBEL UNIVERSITY DEPARTMENT OF INTERNATIONAL FINANCE AND BANKING 1

2. Contents Introduction Chapter 1. THE TEORETICAL ASPECTS OF FINANCIAL RESOURCES OF THE COMPANY The essence of the financial resources of the enterprise Sources of formation of financial resources of the enterprise Assessment of international approaches for the efficient use of financial resources of the enterprise Conclusions to chapter 1 Chapter 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 2 CHAPTER 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 3 CONCLUSIONS AND RECOMMENDATIONS LIST OF THE REFERENCES APPENDIX 2

3. 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. 3

4. Fig. 1. Components of enterprise financial resources Financial resources Charter capital additional capital operating surplus depreciation deductions retained earnings long- term and short- term bank loans account payable of all kinds 4

5. Fig. 2. Sources of forming the financial resources of company 5

6. 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. 6

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8. Fig. 4. Users of mobile communication of JSC «Kiivstar», million people. Fig. 5. Decline of average account of mobile communication of JSC «Kiivstar». 8

9. Fig. 6. Analysis of balance liquidity of JSC«Kiivstar» in 2011-2013 CodeNameDescription31.12.2011, th.hrn31.12.2012, th. hrn 31.12.2013, th. hrn A1Most liquid assetsMonetary resources889 4501 369 855641 911 П1Most urgent obligationsAccount payable1 202 2741 379 2001 331 723 A1-П1 Liability payments obligations of П1 Plus well, minus badly-312 824-9 345-689 812 A2Liquid assetsAccount receivable3 885 8464 125 0041 357 247 П2Short-term liabilitiesShort-term loans93 54550 10557 684 A2-П2Liability payments of П2 Plus well, minus badly +3 792 301+4 074 899+1 299 563 A3Slow liquid assetsReserves1 163 7201 013 979622 133 П3Long-term liabilitiesLong-term loans31 2710,00 A3-П3Liability payments of П3Plus well, minus badly+1 132 449+1 013 979+622 133 A4 Quickly sold assets Fixed assets8 434 5238 366 7308 847 561 П4Regular liabilitiesEqnity capital13 046 44913 446 26310 079 445 A4-П4 Liability payments of П4Plus well, minus badly -4 611 926-5 079 533-1 231 884 9

10. SWOT – analysis О - opportunities A 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 - threats Considerable 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 sides High 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 sides 1. 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 incomes 1 - 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» 10

11. 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.

12. 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. 12

13. 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» 13

14. - 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 14