vimpelcom

VimpelCom

Presentation of 2Q2005Financial and Operating Results

August 25, 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 Company’s 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

49.4759.04

74.3585.56

97.60

2Q04 3Q04 4Q04 1Q05 2Q05

Subscribers in Russia, mln.

Strong Subscriber Growth

Source: VimpelCom, independent sources, competitors’ data

2.312.72

3.213.67

3Q04 4Q04 1Q05 2Q05

Subscribers in Kazakhstan, mln.

40.7%

51.2%

58.9%

67.2%

34.1%

15.4%

18.2%

21.4%

24.5%

Subscribers in Russia

Penetration

Subscribers in KazakhstanPenetration

4

Subscriber Market Share in Kazakhstan

59%62%

66%68%

38%35%

32%29%

3% 3%3% 3%

0%

20%

40%

60%

80%

3Q04 4Q04 1Q05 2Q05

K'Cell KarTel Others

Market Share

Source: VimpelCom, independent sources, competitors’ data

Subscriber Market Share in Russia

37%35% 36% 35% 35%

33%34%

35% 35% 35%

18%19% 18%19%

18%

12% 12% 11% 12% 11%

0%

20%

40%

2Q04 3Q04 4Q04 1Q05 2Q05

MTS VimpelCom MegaFon Others

5

VimpelCom’s Strategy

‣ 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

Ensure cost efficiency

‣ Develop the Kazakh asset

‣ Selective acquisitions and green field opportunities in the CIS

‣ Industrial approach utilizing synergies with existing VimpelCom operations

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

6

Operating Highlights

‣ 38.3 million subscribers as of August 25, 2005, including 1.6 million in Kazakhstan

‣ Leader in subscriber net additions in Russia and Kazakhstan in 2Q2005

‣ 6.8% increase in ARPU in 2Q2005 as compared with 1Q2005

‣ Strong revenue, OIBDA and net income growth in 2Q2005

‣ Substantial improvement in margins in the 2Q2005 as compared with 1Q2005 OIBDA: 51.4% vs. 47.8%

Net income: 20.6% vs. 17.1% ‣ Named number one operator in customer service by

AC&M agency

7

National GSM Network Rollout Spreads over 11 time zones

In commercial operation In commercial operation

Other licensed regions Other licensed regions Unlicensed territories Unlicensed territories

1

2

3

4

56

78

9

1011

12 13

1415

16

17

18

192021

22

2324

25

26

27

2829 30

31

32

33

34

35

36

37

38

39

40

41

4243

44

45

46

47

48

49

5051

52

53

54

55

56

MoscowPopulation: 17.0 mln.MoscowPopulation: 17.0 mln.

CentralPopulation: 21.0 mln.

CentralPopulation: 21.0 mln.

SouthPopulation: 22.9 mln.

SouthPopulation: 22.9 mln.

VolgaPopulation: 25.2 mln.

VolgaPopulation: 25.2 mln.

SiberiaPopulation: 15.3 mln.SiberiaPopulation: 15.3 mln.

Far EastPopulation: 11.4 mln.

Far EastPopulation: 11.4 mln.

UralsPopulation: 18.3 mln.UralsPopulation: 18.3 mln.

NorthwestPopulation: 14.0 mln.NorthwestPopulation: 14.0 mln.

60

59

58

57

61

6263

64

65

66

70

67

68

69

71

72

73

74

KazakhstanPopulation: 15.0 mln.Launched: Sept. 2004

KazakhstanPopulation: 15.0 mln.Launched: Sept. 2004

75

76

8

National GSM Network Rollout

NetworkLaunch

1.City of Moscow*2.Moscow Region*3.Voronezh4.Tver5.Kaluga6.Vladimir7.Ryazan8.Lipetsk9.Tula10.Yaroslavl11.Smolensk12.Belgorod13.N. Novgorod14.Saratov15.Rostov16.Barnaul17.Kemerovo

Jul 1999Jul 1999

May 2000Sep 2001Sep 2001Sep 2001Sep 2001Oct 2001Oct 2001Oct 2001Nov 2001Nov 2001Jan 2002Jan 2002Jan 2002Jan 2002Jan 2002

AreaSuperRegion

10,3836,6192,3791,4711,0421,5241,2281,2131,6761,3671,0501,5123,5242,6684,4042,6072,899

AreaPopul. (‘000))

MLA *MLA *

CentralCentralCentralCentralCentralCentralCentralCentralCentralCentralVolgaVolgaSouthSiberiaSiberia

* Moscow license area

** Acquisitions

NetworkLaunch

18. Novosibirsk19. Bryansk20. Kostroma21. Ivanovo22. Orenburg**23. Kursk24. Orel25. Omsk26. Kazan27. Tomsk28. Krasnodar29. Maykop30. Volgograd31. Ufa32. Cheboksary33. Nalchik34. Gorno- Altaysk

Jan 2002May 2002May 2002Jun 2002Jul 2002

Aug 2002Aug 2002Aug 2002Aug 2002Sep 2002Sep 2002Sep 2002Oct 2002Oct 2002Oct 2002Oct 2002Oct 2002

AreaSuperRegion

2,6921,379

7371,1482,1801,235

8602,0793,7791,0465,125

4472,6994,1041,314

901203

AreaPopul.(‘000)

SiberiaCentralCentralCentralVolga

CentralCentralSiberiaVolga

SiberiaSouthSouthSouthVolgaVolgaSouthSiberia

9

National GSM Network Rollout

NetworkLaunch

35. Krasnoyarsk36. Samara37. Astrakhan38. Ulyanovsk39. Kaliningrad**40. Norilsk41. Makhachkala42. Stavropol**43. Cherkessk**44. St.Petersburg45. Tura46. Tambov47. Leningrad Reg.48. Ekaterinburg49. Novgorod50. Penza51. Yoshkar-Ola52. Chelyabinsk53. Tyumen54. Saransk55. Elista56. Vladikavkaz

Oct 2002Nov 2002Nov 2002Dec 2002Dec 2002Dec 2002Jan 2003Jan 2003Jan 2003Apr 2003Aug 2003Oct 2003Oct 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003Mar 2004

Area SuperRegion

2,9663,2401,0051,383

955--

2,5772,735

4394,661

--1,1781,6694,486

6941,453

7283,6033,265

889292710

Area Popul..(‘000)

SiberiaVolgaSouthVolga

North WSiberiaSouthSouth

South North WSiberiaCentralNorth W

UralNorth W

VolgaVolgaUralUral

VolgaSouthSouth

** Acquisitions

NetworkLaunch

57. Kurgan58. Pskov59. Petrozavodsk60 Vologda61. Izhevsk62. Blagovesch.**63. Khabarovsk**64.P-Kamchatsky**

65. Arkhangelsk66. Naryan-Mar67. Perm68. Kudymkar69. Abakan70. Murmansk71. Kirov72. Surgut73. Kyzyl74. Salekhard75. Syktyvkar76. Sakhalin**

Apr 2004Apr 2004Apr 2004May 2004Jun 2004Jun 2004Jun 2004Jun 2004July 2004July 2004Aug 2004Aug 2004Aug 2004Aug 2004Sep 2004Sep 2004Nov 2004Dec 2004Apr 2005July 2005

Area

1,020761716

1,2701,570

9031,437

3591,337

--2,819

--546893

1,504--

306--

1,019547

Area Popul.(‘000)

UralNorth WNorth W North W

VolgaFar EastFar EastFar EastNorth WNorth W

VolgaVolga

SiberiaNorth W

VolgaUral

SiberiaUral

North WFar East

SuperRegion

10

Strong Growth in Russian Regions And Kazakhstan

2,711

2,442

1,938

1,615852240322

3,566

3,104

2,512

2,0841,090479387676

4,851

4,244

3,415

2,642

1,5101,102484859

5,672

4,882

3,892

3,087

1,850

1, 532

5851,131

6,518

5,554

4,785

3,609

2,076

1,926732

1,402

2Q04 3Q04 4Q04 1Q05 2Q05

Subscribers, ('000)

Central Volga South Siberia

Northwest Ural Far East Kazakhstan

19,107

13,898

10,120

22,630

26,600

11

90.0

158.8

2Q04 2Q05

Net Income, $ Million

VimpelCom 2Q05 Financial Highlights

482.9

769.8

2Q04 2Q05

Net Revenues, $ Million76.4%

244.7395.6

2Q04 2Q05

OIBDA, $ Million

61.7%

50.7% 51.4%

2Q04 2Q05

OIBDA Margin

59.4%

Source: VimpelCom

12

Key Subscriber Statistics

Russia 33,700 16,304 107% 29,618 14% % of prepaid * 96.4% 93.7% -- 96.2% --

Moscow 8,501 6,183 38% 8,118 5% % of prepaid * 88.9% 86.5% -- 88.9% --

Regions 25,199 10,121 149% 21,500 17% % of prepaid * 99.0% 98.1% -- 98.9% --

Kazakhstan 1,402 n/a -- 1,131 24% % of prepaid * 98.0% n/a -- 97.5% --

Total 35,102* 16,304 115% 30,748 14% % of prepaid * 96.5% 93.7% -- 96.2% --% of active subs.** 87.2% n/a -- 87.9% --

Churn (quarterly) 6.7% 9.4% -- 5.9% --

(‘000) 30 Jun 05 30 Jun 04 YtY 31 Mar 05 QtQ

*) Including advance payment subscribers ; the 30 Jun 04 and 31 Mar 05 data were recalculated **) Active subscribers are defined as those who in the last three months made a chargeable transaction

13

Total Revenues 769.8 482.9 59.4% 640.6 20.2% Russia 725.9 482.9 50.3% 605.7 19.9% Kazakhstan 43.9 n/a -- 35.0 25.4% Gross Margin 83.4% 84.1% -- 83.0% -- OIBDA 395.6 244.7 61.7% 306.1 29.2% OIBDA Margin 51.4% 50.7% -- 47.8% --OIBDA Russia 378.6 244.7 54.7% 293.9 28.8% OIBDA Kazakhstan 16.9 n/a -- 12.2 38.5%

Net Income 158.8 90.0 76.4% 109.7 44.8% Net Income Margin 20.6% 18.6% -- 17.1% -- Russia 156.5 90.0 73.8% 113.5 37.9% Kazakhstan 2.4 n/a -- -3.8 162.8%

SG&A 242.8 158.5 53.1% 223.5 8.6% % of total revenues 31.5% 32.8% -- 34.9% --incl. sales and marketing expenses 87.1 56.3 54.7% 83.9 3.8%

D&A * 138.3 82.5 67.6% 120.0 15.3% % of Net Revenues 17.9% 17.1% -- 18.7% -- Capex (excl. acquisitions) 406.2 272.4 49.1% 287.6 41.2%

Key Financial Figures($ mln) 2Q05 2Q04 YtY 1Q05 QtQ

* Includes Impairment of long-lived assets

14

Operational Indicators

ARPU, Blended ($) 7.8 10.8 -27.8% 7.3 6.8%

ARPU Russia 7.6 10.8 -29.6% 7.2 5.6%

ARPU Kazakhstan 11.7 n/a -- 11.5 1.7%

MOU, Blended (min) 99.2 96.3 3.0% 86.9 14.2%

MOU Russia 100.9 96.3 4.8% 88.1 14.5%

MOU Kazakhstan 58.1 n/a -- 53.6 8.4%

SAC, Blended ($) 13.3 14.1 -5.7% 14.3 -7.0%

SAC Russia 13.4 14.1 -5.0% 14.1 -5.0%

SAC Kazakhstan 10.6 n/a -- 17.6 -39.8%

2Q05 2Q04 YtY 1Q05 QtQ

15

Strong Balance Sheet

607

2,281

1,581

4,780

1,622

5,079

2003 2004 6M2005

Assets and Liabilities, $'000

Total Debt Total Assets

Cash and Cash Equivalents 151,097 305,857 157,611 Total Assets 5,079,272 4,780,241 2,281,448 Total Debt 1,622,138 1,581,138 606,991 - Short-term 275,074 189,539 214,717 - Long-term 1,347,064 1,391,599 392,274Shareholder’s Equity 2,389,393 2,157,133 987,651 LTM OIBDA* 1,281,663 1,026,721 613,230 - LTM Depreciation and amortization * * 460,137 352,555 196,833 - LTM Operating income 821,526 674,166 416,397

LTM Interest 130,613 85,663 68,246

Debt/Equity 0.7 0.7 0.6 Debt/OIBDA * * * 1.3 1.5 1.0 OIBDA/Interest 9.8 12.0 9.0 Debt/Assets 0.3 0.3 0.3

($’000) 6/30/05 12/31/04 12/31/03

Source: VimpelCom

* LTM OIBDA constitutes the sum of the lines: LTM Operating income and LTM Depreciation and amortizationLTM 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

16

511.9

728.0 805.4

1242.0

1040.3

1506.6

2003 2004 30.06.2005, LTM

Net Operating Cash Flow/Capex, $ mln

Net Operating Cash Flow Capex

Net Operating Cash Flow vs CAPEX

* Net operating cash flow as % of Capex

64.8%*

69.0%*

70.3%*

17

Corporate Activities

‣Merger between VimpelCom and KB Impuls was completed on May 31, 2005.

‣Merger with 7 regional operating companies was approved at the AGM in order to streamline the Company’s corporate structure.

‣Acquisition of an operator in Sakhalin in the Far East made it our 76th operational region in Russia.

18

AGM/EGM and Board of Directors

‣ AGM held on June 22, 2005 elected a new Board of Directors which includes three executives of Alfa, three executives of Telenor and three unaffiliated directors.

‣ David Haines was elected Chairman of the Board.

‣ EGM was convened by Alfa on August 15 to approve VimpelCom’s acquisition of Wellcom, a Ukrainian mobile operator.

‣ The EGM was not held on August 15 because of lack of quorum and Alfa has announced that the rescheduled EGM will now take place on September 14.

19

Summary

‣ Continued subscriber growth resulted in approximately 35.1 million subscribers at the end of 2Q2005 (more than 38 million as of August 25, 2005).

‣ 6.8% increase in ARPU in 2Q2005 as compared with 1Q2005.

‣ Overall market share in Russia was 34.5% at the end of 2Q2005.

‣ Operations in Kazakhstan are developing successfully with market share exceeding 38%.

‣ 59% growth in total operating revenue, 62% growth in OIBDA and 76% growth in net income in 2Q2005 as compared with 2Q2004.

‣ OIBDA margin of 51.4% was the highest in VimpelCom’s history.

20

Questions And Answers

If you would like to ask a question, please press the star key followed by the digit one on your touch-tone

telephone.

Due to time constraints, we ask that you limit yourselves to one question and one follow-up question.

If you are using a speakerphone, please make sure your mute button is turned off to allow your signal to reach

the equipment.

----------Thank you for your interest in VimpelCom

For more information visit www.vimpelcom.com or contact

[email protected]

Reconciliation tables of non-U.S. GAAP measures to their most directly comparable U.S. GAAP financial

measures

22

Reconciliation of OIBDA and OIBDA margin (Unaudited)

Reconciliation of OIBDA to operating income

OIBDA 395,554 306,107 244,694 701,661 446,719 Impairment loss -- -- (7,354) -- (7,354) Depreciation (103,393) (86,334) (65,677) (189,727) (124,703)

Amortization (34,939) (33,629) (9,513) (68,568) (18,656)Operating Income 257,222 186,144 162,150 443,366 296,006

(Three months ended) (Six months ended) ($ ‘000) Jun. 30, 2005 Mar. 31, 2005 Jun. 30, 2004 Jun.30, 2005 Jun.30, 2004

Reconciliation of OIBDA margin to operating income as percentage of net operating revenues

OIBDA margin 51.4% 47.8% 50.7% 49.7% 49.8% Less: Impairment loss -- -- (1.5%) -- (0.8%) Less: Depreciation as % of net operating revenues (13.4%) (13.5%) (13.6%) (13.5%) (13.9%)

Less: Amortization as % of net operating revenues (4.5%) (5.2%) (2.0%) (4.9%) (2.1%) Operating income as %of total operating revenues 33.5% 29.1% 33.6% 31.3% 33.0%

23

Reconciliation of OIBDA and OIBDA margin (Unaudited)

Reconciliation of OIBDA to operating income

OIBDA 378,607 16,947 293,933 12,174 Less: Depreciation 98,789 4,604 83,055 3,279

Less: Amortization 26,280 8,659 24,538 9,091Operating Income 253,538 3,684 186,340 (196)

(Three months ended) ($ ‘000) June 30, 2005 Mar. 31, 2005

Russia Kazakhstan Russia KazakhstanTotal operating revenues 725,913 43,857 605,664 34,972 OIBDA 378,607 16,947 293,933 12,174OIBDA margin 52.2% 38.6% 48.5% 34.8%

Reconciliation of OIBDA margin to operating income as percentage of net operating revenuesOIBDA margin 52.2% 38.6% 48.5% 34.8% Less: Depreciation as % of net operating revenues (13.6%) (10.5%) (13.7%) (9.4%)

Less: Amortization as % of net operating revenues (3.6%) (19.7%) (4.1%) (26.0%) Operating income as %of net operating revenues 35.0% 8.4% 30.7% (0.6)%

24

Reconciliation of SAC (Unaudited)

Reconciliation of SAC to selling, general and administrative expenses Selling, general and administrative expenses 242,762 158,537 223,523 466,285 296,550 Less: General and admin. expenses 155,613 102,247 139,672 295,285 190,112 Sales and marketing expenses, including 87,149 56,290 83,851 171,000 106,438 advertising & marketing expenses 36,103 16,468 20,217 56,320 29,713 dealers’ commission expense 51,046 39,822 63,634 114,680 76,725

New gross subs, ‘000 6,572 3,987 5,856 12,428 6,967

SAC (US$) 13.3 14.1 14.3 13.8 15.3

(Three months ended) (Six months ended) ($ ‘000) Jun. 30, 2005 Jun. 30, 2004 Mar. 31, 2005 Jun. 30, 2005 Jun. 30, 2004

25

Reconciliation of ARPU (Unaudited)

Reconciliation of ARPU to service revenue and connection fees

Service revenue and connection fees US$ 760,723 US$ 473,032 US$ 631,741 US$1,392,464 US$876,704

Less: Connection fees 132 151 160 292 336 Less: Revenue from rent of fiber-optic channels 269 304 272 541 853 Service revenue used to calculate ARPU 760,322 472,577 631,309 1,391,631 875,515 Average number of subscribers, ‘000 32,652 14,625 28,783 30,718 13,471 ARPU (US$) 7.8 10.8 7.3 7.6 10.8

(Three months ended) (Six months ended)($ ‘000) Jun. 30, 2005 Jun. 30, 2004 Mar. 31, 2005 Jun.30, 2005 Jun.30, 2004

26

Reconciliation of SAC in Russia(Unaudited)

Reconciliation of SAC to selling, general and administrative expensesSelling, general and administrative expenses 230,711 158,537 211,487 442,198 296,550 Less: General and admin. expenses 147,333 102,247 133,047 280,380 190,112 Sales and marketing expenses, including 83,378 56,290 78,440 161,818 106,438 advertising & marketing expenses 33,290 16,468 19,258 52,548 29,713 dealers’ commission expense 50,088 39,822 59,182 109,270 76,725

New gross subs, ‘000 6,217 3,987 5,549 11,766 6,967

SAC (US$) 13.4 14.1 14.1 13.8 15.3

(Three months ended) (Six months ended) ($ ‘000) Jun. 30, 2005 Jun. 30, 2004 Mar. 31, 2005 Jun.30, 2005 Jun.30, 2004

27

Reconciliation of ARPU in Russia(Unaudited)


Service revenue and connection fees US$ 716,955 US$ 473,032 US$ 596,769 US$1,313,724 US$876,704

Less: Connection fees 132 151 160 292 336 Less: Revenue from rent of fiber-optic channels 269 304 272 541 853 Service revenue used to calculate ARPU 716,554 472,577 596,337 1,312,891 875,515 Average number of subscribers, ‘000 31,395 14,625 27,770 29,583 13,471 ARPU (US$) 7.6 10.8 7.2 7.4 10.8


28

Reconciliation of SAC in Kazakhstan(Unaudited)

Reconciliation of SAC to selling, general and administrative expensesSelling, general and administrative expenses 12,051 n/a 12,036 24,087 n/a Less: General and admin. expenses 8,280 n/a 6,625 14,905 n/a Sales and marketing expenses, including 3,771 n/a 5,411 9,182 n/a advertising & marketing expenses 2,813 n/a 959 3,772 n/a dealers’ commission expense 958 n/a 4,452 5,410 n/a

New gross subs, ‘000 355 n/a 307 662 n/a

SAC (US$) 10.6 n/a 17.6 13.9 n/a

(Three months ended) (Six months ended) ($ ‘000) Jun. 30, 2005 Jun. 30, 2004 Mar. 31, 2005 Jun.30, 2005 Jun.30, 2004

29

Reconciliation of ARPU in Kazakhstan(Unaudited)


Service revenue and connection fees US$ 44,002 n/a US$ 34,972 US$ 78,974 n/a

Less: Connection fees 0 n/a 0 0 n/a Less: Revenue from rent of fiber-optic channels 0 n/a 0 0 n/a Service revenue used to calculate ARPU 44,002 n/a 34,972 78,974 n/a Average number of subscribers, ‘000 1,257 n/a 1,013 1,135 n/a ARPU (US$) 11.7 n/a 11.5 11.6 n/a


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