VimpelCom

1
VimpelCom

• Presentation of 1Q2005
• Financial and Operating Results

June 2, 2005
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
strategy and development plans, such as national
and CIS growth. The forward-looking statements
are based on management's best assessment of the
Company's strategic and financial position, and
future market conditions and trends. These
discussions involve risks and uncertainties. The
actual outcome may differ materially from these
statements as a result of unforeseen developments
from competition, governmental regulations of the
wireless telecommunications industry, general
political uncertainties in Russia and the CIS,
general economic developments in Russia and the
CIS and other factors. As a result of such risks
and uncertainties, there can be no assurance that
the effects of competition or current or future
changes in the political, economic and social
environment or current or future regulation of
the telecommunications industries in Russia or
the countries of the CIS will not have a material
adverse effect on the VimpelCom Group. 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, 2004 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
release, or to make corrections to reflect future
events or developments.
3
Welcome Remarks

• Alexander Izosimov, Chief Executive Officer

4
VimpelComs Strategy
Extract value from Win the
regional Expansion
outside existing operations
growth game
Russia

• Increase loyalty, reduce churn
• Improve network quality perception
• Increase market share in business/Hi-value
  segment
• Stimulate traffic usage and up-sell / cross-sell
  VAS

• Capture organic growth
• Utilize unified business model
• Brand, tariffs and products
• Network rollout operations
• Customer Service
• IT, Billing and Reporting
• Organizational structure
• Apply tailored strategy for each region

• Develop the Kazakh asset
• Selective acquisitions and green field
  opportunities in the CIS
• Industrial approach utilizing synergies with
  existing VimpelCom operations

Ensure cost efficiency

5
Operating Highlights

• 33.2 million subscribers as of June 2, 2005,
  including 1.3 million in Kazakhstan
• Leader in subscriber net additions in Russia and
  Kazakhstan in 1Q2005
• More than 50 growth in total operating revenue
  and OIBDA in 1Q2005 as compared with 1Q2004
• Substantial recovery in margins in the 1Q2005 as
  compared with 4Q2004 OIBDA 47.8 vs.
  45.5 Net income 17.1 vs. 13.4

6
National GSM Network Rollout Spreads over 11
time zones
Moscow Population 17.0 mln.
Urals Population 18.3 mln.
Northwest Population 14.0 mln.
70
39
59
44
Central Population 21.0 mln.
47
58
49
65
4
11
66
60
10
40
19
1
5
Russia
75
2
20
6
9
21
24
23
7
8
13
71
12
46
68
54
51
3
74
32
64
50
61
67
38
72
26
14
45
30
15
28
48
36
29
31
Far EastPopulation 11.4 mln.
22
52
53
55
42
43
57
33
37
27
25
56
41
18
35
62
63
17
Kazakhstan
16
69
South Population 22.9 mln.
73
34
SiberiaPopulation 15.3 mln.
VolgaPopulation 25.2 mln.
Kazakhstan Population 15.0 mln. Launched Sept.
2004
In commercial operation
Other licensed regions
7
National GSM Network Rollout
Moscow license area
Acquisitions
8
National GSM Network Rollout
Acquisitions
9
Strong Subscriber Growth
30.75
26.58
20.55
16.30
13.37
Source VimpelCom, independent sources
10
Strong Growth in Russian Regions And Kazakhstan
22,630
19,107
13,898
10,120
7,329
11
Key Subscriber Statistics
(000) 31 Mar 05 31 Mar
04 YtY 31 Dec 04 QtQ
Moscow 8,118 6,042
34 7,477
9 Contract 906
827 10 883
3 Prepaid 7,212
5,215 38 6,594
9 Regions 21,500
7,329 193 18,247
18 KaR-Tel 1,131
n/a
-- 859 32
Total 30,748
13,372 130
26,583 16 Contract 3,543
1,823 94
3,184 11 Prepaid 27,206
11,549 136 23,399
16 Churn (quarterly) 5.9
8.6 --
5.7 --
) of which 88.0 are active. Pursuant to the
definition "a subscriber is considered active if
the subscribers' activity resulted in income to
the Company during the most recent three months".
12
VimpelCom 1Q05 Financial Highlights
45.1
54.8

51.5
Source VimpelCom
13
Key Financial Figures
( mln) 1Q05
1Q04 YtY 4Q04
QtQ
Total Revenues 640.6
413.8 54.8
624.9 2.5 Russia
605.6 413.8 46.4
590.6 2.5 Kazakhstan
35.0 n/a
-- 34.3
2.0 Gross Margin 83.0
82.7 -- 82.5
-- OIBDA
306.1 202.0 51.5
284.3 7.7 OIBDA
Margin 47.8 48.8
-- 45.5
-- OIBDA Russia
293.9 202.0
45.5 271.6
8.2 OIBDA Kazakhstan
12.2 n/a --
12.7 -3.9 Net Income
109.7 75.6
45.1 83.7 31.1
Net Income Margin 17.1
18.3 --
13.4 -- Russia 113.5
75.6 50.1 84.2
34.8 Kazakhstan
-3.8 n/a --
-0.4 -850
SGA 223.5 138.0
62.0 231.1
-3.3 of total revenues 34.9
33.3 --
37.0 -- incl. sales and
marketing expenses 83.9
50.1 67.5
90.0 -6.8 DA
120.0 68.2
76.0 112.4 6.8
of Net Revenues 18.7
16.5 --
18.0 -- Capex (incl. acquisitions)
295.6 156.8
88.5 466.2 -36.6
14
Operational Indicators
1Q05 1Q04
YtY 4Q04 QtQ
ARPU, Blended () 7.3
10.9 -33.0 9.0
-18.9 ARPU Russia 7.2
10.9 -33.9 8.7
-17.2 ARPU Kar-Tel
11.5 n/a
--
15.6 -26.3 MOU, Blended (min)
86.9 91.4
-4.9 97.3
-10.7 MOU Russia
88.1 91.4 -3.6
98.3 -10.4 MOU
Kar-Tel 53.6
n/a
-- 68.9
-22.2 SAC, Blended () 14.3
16.8 -14.9
12.3 16.3 SAC
Russia 14.1 16.8
-16.1 12.1 16.5 SAC
Kar-Tel 17.6
n/a
-- 19.1
-7.9
15
Strong Balance Sheet
(000) 3/31/05 12/31/04 12/31/03
Cash and Cash Equivalents 451,088
305,857 157,611 Total Assets
5,150,783 4,780,241 2,281,448
Total Debt 1,863,791 1,581,138
606,991 - Short-term
190,325 189,539
214,717 - Long-term
1,673,466 1,391,599
392,274 Shareholders Equity
2,261,251 2,157,133 987,651 LTM
OIBDA 1,130,803 1,026,721
613,230 - LTM Depreciation and amortization
404,349 352,555 196,833 -
LTM Operating income
726,454 674,166 416,397 LTM
Interest
108,724 85,663 68,246
Debt/Equity
0.8 0.7 0.6
Debt/OIBDA 1.6
1.5 1.0 OIBDA/Interest
10.4 12.0 9.0
Debt/Assets
0.4 0.3 0.3
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 Includes Impairment of
long-lived assets In cases when OIBDA is
part of financial ratios it is deemed to be
calculated in accordance with the reconciliation
tables herein
Source VimpelCom
16
Net Operating Cash Flow vs CAPEX
65.8
70.3
43.5
Net operating cash flow as of Capex
17
Corporate Activities

• VimpelCom received regional GSM licenses
  previously held by VimpelCom-Region.
• Merger between VimpelCom and KB Impuls was
  completed on May 31, 2005. Applications
  submitted for re-issuance of licenses and
  frequencies to VimpelCom.
• The 2005 AGM will be held on June 22. For the
  first time there are 12 nominations for 9 board
  seats.

18
Summary

• Continued subscriber growth resulted in
  approximately 30.8 million subscribers at the end
  of 1Q2005 (more than 33 million as of June 2,
  2005)
• Overall market share in Russia was 34.6 at the
  end of 1Q2005
• More than 50 growth in in total operating
  revenue and OIBDA in 1Q2005 as compared with
  1Q2004.
• Corporate structure is being streamlined with
  subsidiaries being merged with and into VimpelCom
• Preparing for a new phase of competition in
  Russia as the market matures

19
Reconciliation tables of non-U.S. GAAP measures
to their most directly comparable U.S. GAAP
financial measures
20
Reconciliation of OIBDA and OIBDA margin
(Unaudited)

(Three months ended)
( 000)
Mar. 31, 2005
Dec. 31, 2004 Mar.
31, 2004
Reconciliation of
OIBDA to operating income OIBDA
306,107
284,339 202,025
Less Depreciation
86,334
81,971 59,026
Less Amortization
33,629
30,454
9,143 Operating Income
186,144 171,914
133,856
Reconciliation of
OIBDA margin to operating income
as percentage of net
operating revenues OIBDA margin
47.8
45.5
48.8 Less Depreciation as of net
operating revenues
(13.5)
(13.1) (14.3)
Less Amortization as of net operating
revenues (5.2)
(4.9)
(2.2) Operating
income as of net operating revenues
29.1
27.5 32.3
21
Reconciliation of OIBDA and OIBDA margin in
Russia and Kazakhstan (Unaudited)

(Three months ended)
( 000)

Mar. 31, 2005
Dec. 31, 2004
Russia Kazakhstan
Russia
Kazakhstan Total operating revenues
605,664 34,972
590,584 34,323 OIBDA

293,933 12,174
271,647
12,692 OIBDA margin
48.5
34.8 46.0
37.0

Reconciliation of OIBDA to operating income
OIBDA
293,933 12,174
271,647 12,692 Less
Depreciation
83,055 3,279
78,568 3,404
Less Amortization
24,538 9,091
21,815
8,639 Operating Income
186,340 (196)
171,265 649
Reconciliation of
OIBDA margin to operating income
as percentage of net
operating revenues OIBDA margin
48.5
34.8 46.0
37.0 Less Depreciation as of net
operating revenues
(13.7) (9.4)
(13.3) (9.9)
Less Amortization as of net operating
revenues (4.1)
(26.0)
(3.7) (25.2) Operating income as of
net operating revenues
30.7 (0.6)
29.0 1.9
22
Reconciliation of SAC (Unaudited)

(Three months ended)
( 000)
Mar. 31, 2005
Dec. 31, 2004
Mar. 31, 2004

Reconciliation of SAC to selling, general and

administrative expenses Selling,
general and administrative expenses
223,523
231,064 138,013
Less General and admin. expenses

139,672 141,025
87,865 Sales and
marketing expenses, including
83,851
90,039
50,148 advertising marketing expenses

20,217
21,649
13,245 dealers commission expense

63,634
68,390
36,903 New gross subs, 000
5,856
7,343
2,979 SAC (US)
14.3
12.3
16.8
23
Reconciliation of ARPU (Unaudited)
(Three
months ended) ( 000)
Mar. 31, 2005
Dec. 31, 2004 Mar.
31, 2004
Reconciliation of ARPU to
service revenue and connection fees Service
revenue and connection fees
US 631,741 US 612,720
US 403,672 Less Connection
fees 160 193 185
Less Revenue from rent of fiber-optic
channels 272 527
549 Service revenue used to calculate
ARPU
631,309 612,000
402,938 Average number of
subscribers, 000
28,783
22,764 12,318 ARPU (US)
7.3
9.0 10.9
24
Reconciliation of SAC (Unaudited) in Russia

(Three months ended)
( 000)
Mar. 31, 2005
Dec. 31, 2004
Mar. 31, 2004

Reconciliation of SAC to selling, general and

administrative expenses Selling,
general and administrative expenses
211,487
220,620 138,013
Less General and admin. expenses

133,047 134,728
87,865 Sales and
marketing expenses, including
78,440
85,892
50,148 advertising marketing expenses

19,258
20,723
13,245 dealers commission expense

59,182
65,169
36,903 New gross subs, 000
5,549
7,126
2,979 SAC (US)
14.1
12.1
16.8
25
Reconciliation of ARPU (Unaudited) in Russia
(Three
months ended) ( 000)
Mar. 31, 2005
Dec. 31, 2004 Mar.
31, 2004
Reconciliation of ARPU to
service revenue and connection fees Service
revenue and connection fees
US 596,769 US 578,397
US 403,672 Less Connection
fees 160
193
185 Less Revenue from rent
of fiber-optic channels
272 527
549 Service
revenue used to calculate ARPU
596,337
577,677
402,938 Average number of subscribers,
000
27,770 22,030
12,318 ARPU (US)

7.2 8.7
10.9
26
Reconciliation of SAC of Kar-Tel to
selling,general and administrative expenses

(Three months ended) ( 000)
Mar.
31, 2005 Dec. 31, 2004
Mar. 31, 2004

Reconciliation of SAC to selling, general and

administrative expenses Selling,
general and administrative expenses
12,036
10,444 N/A
Less General and admin. expenses

6,625
6,297 N/A
Sales and marketing expenses, including
5,411
4,147
N/A advertising
marketing expenses
959
926
N/A dealers
commission expenses
4,452
3,221
N/A New gross subs,
000
307
217 N/A
SAC (US)
17.6
19.1
N/A
27
Reconciliation of ARPU of Kar-Tel to service
revenue and connection fees

(Three months ended)
( 000)
Mar. 31,
2005 Dec. 31, 2004
Mar. 31, 2004
Reconciliation of ARPU to
service revenue and connection fees Service
revenue and connection fees
US 34,972 US
34,323 N/A
Less Connection fees
0
0 N/A
Less Revenues from rent of fiber-optic
channels 0
0
N/A Service revenue
used to calculate ARPU
34,972
34,323
N/A Average number of subscribers, 000
1,013
735
N/A ARPU (US)
11.5
15.6
N/A