VimpelCom

1
VimpelCom

• Presentation of 1Q2004
• Financial and Operating Results

May 27, 2004
2
Disclaimer
This presentation contains "forward-looking
statements", as the phrase is defined in Section
27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These
statements relate, in part, to the Companys
development plans, such as national expansion.
These statements also relate to the consummation
of the merger between VimpelCom and each of
VimpelCom-Region and KB Impuls each of which is
subject to regulatory and certain other
approvals, as well as certain other conditions
precedent, including the transfer of all
respective licenses and permissions to VimpelCom.
If any of the respective approvals are not
obtained or any condition precedent is not met,
the mergers will not be consummated. The
forward-looking statements are based on
management's best assessment of the Company's
strategic and financial position, future market
conditions and trends and its ability to
consummate the mergers. These discussions involve
risks and uncertainties. The actual outcome may
differ materially from these statements as a
result of unforeseen developments from regulatory
authorities, competition, governmental
regulations of the wireless telecommunications
industry, general political and social
uncertainties in Russia, general economic
developments in Russia, the Companys ability to
continue to grow its overall subscriber base,
continued volatility in the world economy and
other factors. There can be no assurance that
such risks and uncertainties will not have
material adverse effects on the Companys
development plans. Certain factors that could
cause actual results to differ materially from
those discussed in any forward-looking statements
include the risks described in the Company's
Annual Report on Form 20-F for the year ended
December 31, 2003 and other public filings made
by the Company with the United States Securities
and Exchange Commission, which risk factors are
incorporated herein by reference. VimpelCom
disclaims any obligation to update developments
of these risk factors or to announce publicly any
revision to any of the forward-looking statements
contained in this presentation, or to make
corrections to reflect future events or
developments.
3
VimpelCom 1Q2004 Financial Highlights
70.9
83.9

87.2
Source VimpelCom
4
VimpelCom-R 1Q2004 Financial Highlights
3789.1
167.3

354.3
Source VimpelCom
5
Operating Highlights

• 14.9 million subscribers in Russia as of May 27,
  2004
• Operations encompass 60 regions including 5
  regional networks launched in 2004
• Strong financial results with OIBDA margin of
  48.4, the highest number since 1996
• VAS revenues reached 15 of service revenues
• Oracles financial system launched to reinforce
  internal control procedures

6
National GSM Network Rollout
Moscow Population 17.0 mln.
Northwest Population 14.0 mln.
Central Population 21.0 mln.
Urals Population 18.3 mln.
39
59
44
58
47
49
4
60
11
10
1
5
19
40
2
20
9
6
21
24
23
7
8
13
12
46
51
54
3
32
50
26
38
45
14
15
28
30
36
48
31
29
22
52
42
53
43
55
57
37
27
33
56
25
35
41
18
17
VolgaPopulation 25.2 mln.
16
34
South Population 22.9 mln.
SiberiaPopulation 15.3 mln.
Far EastPopulation 11.4 mln.
In commercial operation
Other licensed regions
7
National GSM network rollout (regions)
32. Cheboksary 33. Nalchik 34. Gorno-Altaysk 35.
Krasnoyarsk 36. Samara 37. Astrakhan 38.
Ulyanovsk 39. Kaliningrad 40. Norilsk 41.
Makhachkala 42. Stavropol 43. Cherkessk 44.
St. Petersburg 45. Tura 46. Tambov 47. Leningrad
Reg. 48. Ekaterinburg 49. Novgorod 50. Penza 51.
Yoshkar-Ola 52. Chelyabinsk 53. Tyumen 54.
Saransk 55. Elista 56. Vladikavkaz 57. Kurgan
58. Pskov 59. Rep. of Karelia 60. Vologda
Volga South Siberia Siberia Volga South Volga Nort
h W Siberia South South South North
W Siberia Central North W Ural North
W Volga Volga Ural Ural Volga South South Ural Nor
th W North W North W
Oct 2002 Oct 2002 Oct 2002 Oct 2002 Nov 2002 Nov
2002 Dec 2002 Dec 2002 Dec 2002 Jan 2003 Jan
2003 Jan 2003 April 2003 Aug 2003 Oct 2003 Oct
2003 Dec 2003 Dec 2003 Dec 2003 Dec 2003 Dec
2003 Dec 2003 Dec 2003 Dec 2003 Mar 2004 Apr
2004 Apr 2004 Apr 2004 May 2004
1,314 900 203 2,966 3,240 1,007 1,382 955 135 2,58
4 2,730 440 4,669 18 1,180 1,671 4,490 695 1,453 7
28 3,606 3,266 889 292 710 1,020 761 717 1,270
Moscow license area
Acquisitions
8
Strong Subscriber Growth
13.37
11.44
9.26
7.43
6.19
23
Source VimpelCom, independent sources
9
Strong Growth In The Regions
7,329
incl.96 ths. subs in Ural
5,777
4,183
3,005
2,242
10
Network Rollout As Of March31, 2004
Moscow Regions
Total

1Q2004 4Q2003 1Q2004
4Q2003 1Q2004 4Q2003
? of BTSs 2,764 2,681
4,721 4,330 7,485 7,011 ? of
BSCs 116 116 121
111 237 227 ? of MSCs
12 12 50 47
62 59
Note BTS base transceiver station BSC base
station controller MSC mobile switching center
Source VimpelCom
11
Key Subscriber Statistics
(000) 31 Mar 04 31 Mar 03
YtY 31 Dec 03 QtQ
Moscow 6,042 3,946 53
5,660 7 Contract
827 732 13 820
1 Prepaid 5,215 3,214 62
4,840 8 Regions 7,329
2,242 227 5,777 27 Total
13,372 6,188 116
11,437 17 Contract 1,823 1,360
34 1,491 22
Prepaid 11,549 4,828 139
9,946 16 Churn (quarterly) 8.6
9.6 - 9.7
-
12
Key Financial Figures
( mln) 1Q04 1Q03
YtY 4Q03
QtQ
Net Revenues 417.7 244.4 70.9
407.7 2.4 Moscow 256.3
179.4 42.9 263.0 -2.6
Regions 161.4 65.0 148.1
144.7 11.6 Gross Margin 81.9
80.4 -- 82.0 --
OIBDA 202.0 107.9
87.2 186.9 8.1 OIBDA Margin
48.4 44.2 -- 45.8
-- Net Income 76.1
41.4 83.9 67.7
12.4 Net Income Margin 18.2 16.9
-- 16.6 -- Moscow
60.0 39.9 50.5 48.6
23.4 Regions 26.8
0.04 72291.9 35.5
-24.5 SGA 138.0
85.3 61.8 148.8
-7.2 of Net Revenues 33.0 34.9
-- 36.5
-- DA 66.5 39.1 70.2
51.9 28.2 of Net
Revenues 15.9 16.0 --
12.7 -- Capex 156.8
136.9 14.5 251.6
-37.7
Net operating revenues and net income excluding
inter-company transactions
13
Operational Indicators
1Q04 1Q03 YtY
4Q03 QtQ
ARPU, Blended () 10.8 13.5
-20.0 12.5 -13.6 ARPU
Moscow 14.1 15.2 -7.1
15.7 -9.9
Contract (Moscow) 50.5 45.6
10.7 52.7 -4.1
Prepaid (Moscow) 8.2 8.1
1.4 9.1 -10.0 ARPU
Regions 8.6 10.8 -20.2
10.0 -13.9 MOU, Blended (min) 91.4
87.5 4.5 96.8
-5.6 MOU Moscow 103.0
90.3 14.1 108.0 -4.6 Contract
(Moscow) 333.7 258.6 29.0
343.0 -2.7 Prepaid (Moscow) 65.3
50.8 28.4 66.2
-1.4 MOU Regions 80.9
81.8 -1.1 84.6
-4.4 SAC, Blended () 16.8 20.8
-19.2 18.1
-7.0 Moscow 27.7 29.9
-7.5 28.4 -2.6
Regions 12.2 11.7 4.3
12.1 1.0
14
Strong Balance Sheet
LTM OIBDA constitutes the sum of the lines LTM
Operating income and LTM Depreciation and
amortization LTM stands for last twelve months
to reporting date In cases when OIBDA is
part of financial ratios it is deemed to be
calculated in accordance with the reconciliation
tables herein
Source VimpelCom
15
Net Operating Cash Flow vs CAPEX
74.0
70.3
43.5
Net operating cash flow as of Capex
16
Corporate Actions

• Merger between VimpelCom and VimpelCom-R
• Major remaining steps
• Transfer of licenses and frequencies to
  VimpelCom
• Liquidation of VimpelCom-R
• Placement of VimpelCom shares to Alfa and Telenor
  in exchange for their ownership position in
  VimpelCom-R

17
Corporate Actions (cont)

• Merger between VimpelCom and KB Impuls was
  approved at the AGM on May 26 by more than 50 of
  all disinterested shareholders
• Major remaining steps
• Approval by anti-monopoly authorities
• Obtaining third party consents (suppliers,
  creditors)
• Approval at the Joint EGM of VimpelCom and KB
  Impuls shareholders (a formality
  required by Russian law)
• Transfer of licenses and frequencies from KB
  Impuls to VimpelCom
• Liquidation of KB Impuls

18
Summary

• Ongoing rapid subscriber growth resulted in
  almost 15 million subscribers
• Strong financial results with OIBDA margin of
  48.4
• Overall market share in Russia has increased to
  32
• Ongoing corporate actions will create full
  exposure for minority shareholders to regional
  growth and simplify corporate structure both in
  Moscow and nationwide
• Operational focus going forward maintain growth,
  sustain profitability and combat churn

19
Reconciliation tables of non-U.S. GAAP
measurements to their most directly comparable
U.S. GAAP financial measurements
20
Reconciliation of OIBDA and OIBDA margin
(Three
months ended) ( 000)
March 31, 2004 Dec. 31, 2003
March 31, 2003
Reconciliation of VimpelCom OIBDA
to operating income OIBDA
202,025 186,893
107,936 Depreciation
(57,337)
(42,776) (31,678)
Amortization (9,143)
(9,083)
(7,372) Operating Income
135,545 135,034
68,886
Reconciliation of VimpelCom OIBDA margin
to operating income
as percentage of net operating revenues OIBDA
margin 48.4
45.8
44.2 Less Depreciation as of net
operating revenues (13.7)
(10.5)
(13.0) Less Amortization as
of net operating revenues (2.2)
(2.2)
(3.0) Operating income as
of net operating revenues 32.5
33.1
28.2
21
Reconciliation of OIBDA and OIBDA margin
(Three
months ended) (
000) March 31, 2004
Dec. 31, 2003 March
31, 2003
Reconciliation of VimpelCom-Region
OIBDA to operating income OIBDA
69,923
62,345 15,390 Depreciation
(18,194)
(11,740) (6,760)
Amortization (6,166)
(5,995)
(4,550) Operating Income
45,563 44,610
4,080
Reconciliation of VimpelCom-Region OIBDA
margin to operating income
as percentage of net operating
revenues OIBDA margin
40.1 40.2
23.6 Less Depreciation as
of net operating revenues
(10.4) (7.6)
(10.4) Less
Amortization as of net operating revenues
(3.5)
(3.9)
(7.0) Operating income as of net operating
revenues 26.2
(28.7) 6.2
22
Reconciliation of ARPU
( 000)
2003 Q1 2003
Q4 2004 Q1
Total operating revenues (MLA)
192,233 280,909 275,808 Less
Revenues from sales of handsets and
accessories and other revenues
17,144
27,783 26,974 Less Connection
fees
426 179
162 Less Revenue from rent of
fiber-optic channels
372 417 549
Service revenue used to calculate ARPU
174,291
252,530 248,123 Average number of
subscribers, 000
3,815 5,359
5,845 MLA ARPU per month
15.2 15.7
14.1
Service revenue from MLA prepaid subscribers
74,882 124,603 123,387 Average
number of prepaid subscribers, 000
3,090 4,549
5,022 MLA ARPU per month (prepaid
subscribers) 8.1
9.1 8.2
Service revenue used to calculate MLA ARPU
174,291 252,530 248,123 Less
Service revenue from MLA prepaid subscribers
74,882 124,603
123,387 Service revenue used to calculate MLA
contract ARPU 99,409
127,927 124,736 Average number of
contract subscribers, 000
726 809
823 MLA ARPU per month (contract subscribers)
45.6 52.7 50.5
23
Reconciliation of ARPU (cont)
( 000)
2003 Q1 2003
Q4 2004 Q1
Total operating revenues (Regions)
70,118 159,445 178,096 Less
Revenues from sales of handsets and
accessories and other revenues
10,296
12,212 10,606 Less Connection
fees
126 23
98 Service revenue used to
calculate ARPU
59,696 147,211 167,392
Average number of subscribers, 000
1,842
4,919 6,473 Regional ARPU per month
10.8
10.0 8.6
Consolidated
Service revenue and connection fees
203,099 386,322 400,903 Less
Connection fees
337
202 185 Less Revenue from
rent of fiber optic channels
372 417
549 Service revenue used to calculate ARPU
229,390
385,703 400,169 Average number of
subscribers, 000
5,658 10,277
12,318 Consolidated ARPU per month
13.5 12.5
10.8
24
Reconciliation of SAC
( 000)
2003 Q1 2003
Q4 2004 Q1
SGA (Total)
85,310 148,764 138,013
Less General and administrative expenses
56,643
91,533 87,865 Sales and marketing
expenses, including
28,667 57,231
50,148 advertising marketing expense
9,445
16,236 13,245 dealers
commission expense
19,222 40,995
36,903 New gross subscribers

1,377 3,170
2,979 Total Subscriber Acquisition Cost (SAC)
20.8 18.1
16.8
SGA (MLA)
60,883 91,634 76,591
Less General and administrative expenses
40,156
58,458 51,987 Sales and marketing
expenses, including
20,727 33,176 24,604
advertising marketing expense
6,481
9,096 8,143 dealers
commission expense
14,246 24,080
16,460 New gross subscribers

693 1,168 890 MLA
Subscriber Acquisition Cost (SAC)
29.9 28.4 27.7
SGA (Regions)
24,500 59,859 64,507
Less General and administrative expenses
16,490
35,662 38,962 Sales and marketing
expenses, including
8,010 24,197
25,545 advertising marketing expense
2,964
7,140 5,102 dealers
commission expense
5,046 17,057
20,443 New gross subscribers

683 2,003
2,090 Regional Subscriber Acquisition Cost (SAC)
11.7 12.1
12.2