Quantcast

VimpelCom Ltd. Announces Pro Forma First Quarter 2010 Operating Results and Selected Financial Data

May 26, 2010

AMSTERDAM and NEW YORK, May 26 /PRNewswire-FirstCall/ – “VimpelCom Ltd.” (“VimpelCom” or the “Company”) (NYSE: VIP), a leading international provider of telecommunications services, today announces its pro forma operating and financial results for the quarter ended March 31, 2010.

This earnings release contains pro forma information* for VimpelCom and the financial and operating results of each of Open Joint Stock Company “Vimpel-Communications” (“OJSC VimpelCom”) and Closed Joint Stock Company “Kyivstar G.S.M.” (“Kyivstar”) on a stand-alone basis. The presentation of OJSC VimpelCom’s financial and operating results follows the format of its 2009 year-end earnings release, with its consolidated financial results and the financial results of its CIS operations being presented in US dollars and the financial results of its Russian operations being presented in Russian Rubles. Kyivstar’s financial and operating results are presented in its functional currency, the Ukrainian Hryvnia.

In accordance with recently adopted accounting rules, from January 1, 2010 OJSC VimpelCom began to consolidate the results of LLC Sky Mobile’s operations in Kyrgyzstan.

*See page 9 for details

Combined Financial and Operating Results on a Pro Forma Basis


    (US$, millions) -1Q      OJSC
     10                    VimpelCom   Kyivstar                 Pro Forma
                                                      HQ and
                                                  eliminations  Condensed
                                                                 Combined
    Net operating revenues      2,231        322           (18)      2,535
    Adjusted OIBDA              1,052        164           (11)      1,205
    Adjusted OIBDA margin,
     %                           47.2%      50.9%                     47.5%
    Operating income              633         40           (11)        662
    Operating income
     margin, %                  28.4%      12.4%                     26.1%
    SG&A                          632         98            11         741
    including Sales &
     Marketing Expenses           191         17                       208
    including General &
     Administrative Costs         441         81            11         533
    SG&A percentage              28.3%     30.4 %                     29.2%
    Net income (loss)
     attributable to
     VimpelCom Ltd.               392         28            (8)        412
    Net income (loss)
     attributable to
     VimpelCom Ltd. per
     ADS, basic, (US$)                                                0.32
    Capital expenditures        179.3       55.8                     235.1
    Mobile subscriptions
     ('000)                    66,821     21,934                    88,755
    Broadband
     subscriptions ('000)       2,513          -                     2,513

Quarterly highlights:

  • Pro forma net operating revenues and OIBDA* of $2.5 billion and $1.2 billion, respectively
  • 1Q10 VimpelCom Ltd. transaction related costs and the new headquarters overhead charges amounted to $11 million
  • The first quarter pro forma OIBDA margin was 47.5%
  • Pro forma net income attributable to VimpelCom Ltd. amounted to $412 million.
  • Combined operating cash flow amounted to $960 million

Commenting on the first quarter results of VimpelCom, Alexander Izosimov, Chief Executive Officer of VimpelCom, said, “With this release we open a new chapter in our history. The combination of the two market leaders – OJSC VimpelCom and Kyivstar – has created a new strong emerging markets player. The increased scale of our business, combined with our high level of profitability, positions VimpelCom as the leading telecom operator in the region.

Our quarterly results give us confidence that the development of our business is on track. We remain focused on sustainable revenue growth and continued to deliver returns to our shareholders.

Looking ahead, we will focus on completing the integration and organizational structure of our new company in order to deal with the changing industry landscape. We believe that the outlook for VimpelCom is bright and are confident that we will successfully leverage our new advantages.”

* Hereafter refers to adjusted OIBDA (See definition of adjusted OIBDA in Attachment A)

OJSC VimpelCom: Key Consolidated Financial and Operating Results*


    CONSOLIDATED OPERATIONS
     (US$, millions)           1Q 10   1Q 09   1Q 10/   4Q 09   1Q 10/
    -----------------------    -----   -----    1Q 09   -----    4Q 09
                                                -----            -----
    Net operating revenues      2,231   1,973     13.1%  2,309     -3.4%
    ----------------------      -----   -----     ----   -----     ----
    Adjusted OIBDA              1,052     949     10.9%  1,088     -3.3%
    --------------              -----     ---     ----   -----     ----
    Adjusted OIBDA margin, %    47.2%   48.1%            47.1%
    ------------------------     ----    ----             ----
    Operating income              633     567     11.6%    608      4.1%
    ----------------              ---     ---     ----     ---      ---
    Operating income margin, %  28.4%   28.7%            26.3%
    --------------------------   ----    ----             ----
    SG&A                          632     538     17.5%    680     -7.1%
    ----                          ---     ---     ----     ---     ----
      including Sales &
       Marketing Expenses         191     156     22.4%    218    -12.4%
      -------------------         ---     ---     ----     ---    -----
      including General &
       Administrative Costs       441     382     15.4%    462     -4.5%
      ---------------------       ---     ---     ----     ---     ----
    SG&A percentage              28.3%   27.3%            29.4%
    ---------------              ----    ----             ----
    Net income (loss)
     attributable to OJSC
     VimpelCom                    392    -297    n/a       283     38.5%
    ---------------------         ---    ----    ---       ---     ----
    Capital expenditures        179.3   113.0     58.7%  422.7    -57.6%
    --------------------        -----   -----     ----   -----    -----
    Mobile subscriptions
     ('000)                    66,821  62,724      6.5% 64,596      3.4%
    --------------------       ------  ------      ---  ------      ---
    Broadband subscriptions
     ('000)                     2,513   1,560     61.1%  2,257     11.3%
    -----------------------     -----   -----     ----   -----     ----

*See definitions in Attachment A. References to “year-on-year” are to comparisons of 1Q10 vs. 1Q09, while references to “quarter-on-quarter” are to 1Q10 vs. 4Q09.

Quarterly highlights:

  • Net operating revenues reflect stability of the core business in Russia and ability to market new products and services
  • Appreciation of local currencies against the US dollar strengthened the top line
  • The decline in revenues compared to the previous quarter reflects the normal seasonality of the business
  • Consolidated fixed and mobile OIBDA margin of 47.2% was in line with the previous quarter
  • Strong operating cash flow of $803 million as a result of consistent focus on cash generation and working capital optimization
  • Capital expenditures will increase further throughout the year as we accelerate the 3G and FTTB network roll-out in the markets in which we operate
  • Repayment of $928 million of debt bringing OJSC VimpelCom’s net debt to $4.9 billion with a Total Debt/OIBDA LTM ratio of 1.5

OJSC VimpelCom: Russia – Financial and Operating Results


    RUSSIA (RUR millions)                1Q 10   1Q 09 1Q 10/  4Q 09 1Q 10/
                                                        1Q 09         4Q 09
    Net operating revenues               57,350  56,272    1.9% 58,819  -2.5%
    Adjusted OIBDA                       27,107  27,227   -0.4% 27,725  -2.2%
    Adjusted OIBDA margin, %              47.3%   48.4%          47.1%
    Operating income                     17,527  17,719   -1.1% 17,393   0.8%
    Operating income margin, %            30.6%   31.5%          29.6%
    SG&A                                 15,796  14,936    5.8% 17,033  -7.3%
      including Sales & Marketing
       Expenses                           4,969   4,485   10.8%  5,862 -15.2%
      including General & Administrative
       Costs                             10,827  10,451    3.6% 11,171  -3.1%
    SG&A percentage                        27.5%   26.5%          29.0%
    Net income (loss) attributable to
     OJSC VimpelCom                      11,557  -6,722  n/a     9,267  24.7%


    RUSSIA REVENUES*       1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
    (RUR millions)                        1Q 09           4Q 09
    Net operating revenues 57,350 56,272     1.9% 58,819    -2.5%
      Mobile               47,882 45,507     5.2% 48,921    -2.1%
      Fixed-line            9,468 10,765   -12.0%  9,898    -4.3%


    RUSSIA OIBDA DEVELOPMENT*      1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
    (RUR millions)                                1Q 09           4Q 09
    Adjusted OIBDA Total           27,107 27,227    -0.4% 27,725    -2.2%
      Mobile                       24,385 23,562     3.5% 24,850    -1.9%
      Fixed-line                    2,722  3,665   -25.7%  2,875    -5.3%
    Adjusted Total OIBDA margin, %  47.3%  48.4%           47.1%
    Mobile, %                       50.9%  51.8%           50.8%
    Fixed-line, %                   28.7%  34.0%           29.0%


    RUSSIA OPERATING DEVELOPMENT   1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
                                                  1Q 09           4Q 09
    Mobile subscriptions ('000)    51,254 49,351     3.9% 50,886     0.7%
    MOU, min                        203.9  203.0     0.4%  217.7    -6.3%
    Adjusted MOU, min**             208.4  205.7     1.3%  221.4    -5.9%
    ARPU mobile, US                 $10.3    9.1    13.2%   10.8    -4.6%
    ARPU mobile, RUR                307.7  306.6     0.4%  316.9    -2.9%
    Broadband subscriptions ('000)  2,335  1,498    55.9%  2,111    10.6%

* Mobile and fixed revenues for all periods were recalculated – please see definition of reportable segments in Attachment A.

** Adjusted MOU is calculated for mobile subscriptions excluding mobile broadband subscriptions using USB modems.

Quarterly highlights:

  • In the mobile segment:
  • Strong demand for data services led to an increase in USB modem subscriptions
  • Stable pricing for traditional voice services
  • VAS as a percentage of mobile service revenues increased to 20.6%
  • Strong mobile OIBDA margin above 50%
  • In the fixed-line segment:
  • Revenues in the US dollar terms remained stable year-on-year
  • Revenue dynamics of a fixed-line segment reflect Russian ruble appreciation as a significant part of our fixed-line client base is billed in US dollars and Euro
  • OIBDA margin remained essentially flat quarter-on-quarter
  • The total number of residential broadband subscriptions, including FTTB and mobile broadband, exceeded 2.3 million with revenues up 59.1% year-on-year

Overall, in Russia the Company achieved good growth in the mobile segment, while fixed-line performance remained stable with ruble revenues and margins affected by currency fluctuations. Our competitive position remains sound, while further revenue growth will be defined to a large degree by continued macroeconomic recovery in the country.

OJSC VimpelCom: CIS*- Financial and Operating Results


    CIS OPERATIONS (US$ millions) 1Q 10   1Q 09   1Q 10/   4Q 09   1Q 10/
                                                   1Q 09            4Q 09
    Net operating revenues         339.8   332.6      2.2%  341.6     -0.5%
    Adjusted OIBDA                 152.4   149.7      1.8%  154.7     -1.5%
    Adjusted OIBDA margin, %       44.8%   45.0%            45.3%
    Operating income                56.9    49.9     14.0%   28.5     99.6%
    Operating income margin, %     16.7%   15.0%             8.3%
    SG&A                            94.7    92.5      2.4%   94.1      0.6%
      including Sales & Marketing
       Expenses                     21.5    22.7     -5.3%   24.9    -13.7%
      including General &
       Administrative Costs         73.2    69.8      4.9%   69.2      5.8%
    SG&A percentage                 27.9%   27.8%            27.5%
    Net income/(loss)
     attributable to OJSC
     VimpelCom                      22.0   -11.0    n/a      -7.6    n/a
    Mobile subscriptions ('000)   15,076  13,373     12.7% 13,342     13.0%
    Broadband subscriptions
     ('000)                          178      62    187.1%    146     21.9%

* OJSC VimpelCom’s CIS operations include operations in Kazakhstan, Uzbekistan, Armenia, Kyrgyzstan, Tajikistan, and Georgia as well as OJSC VimpelCom’s operations in Ukraine. Starting with the second quarter of 2010 we intend to present our operations in Ukraine as a new segment, which will include OJSC VimpelCom’s and Kyivstar’s operations in Ukraine.

Quarterly highlights:

  • 10% year-on-year local currency revenue growth in Kazakhstan, our largest market in this segment, reflecting signs of a return to stability in that market
  • Consolidation of the Kyrgyzstan mobile operations of Sky Mobile, which has a management contract with Kar-Tel, our subsidiary operating in Kazakhstan. Sky Mobile serves 1.8 million customers and has been operating under the “Beeline” brand since June 2009
  • OIBDA margin declined slightly; due in part to the inclusion of the Kyrgyz operations
  • Number of broadband subscriptions increased 187% year-on-year as we started to actively develop our broadband projects in Ukraine, Kazakhstan, Uzbekistan and Armenia.

Overall, in our CIS markets we continue to focus on cash flow and profitability. While the situation in Armenia and Uzbekistan remains challenging, we are pleased with our progress in Kazakhstan and Georgia.

OJSC VimpelCom: South-East Asia

Quarterly highlights:

  • Our operations in South-East Asia are still in a very early stage of development
  • In Cambodia, good network quality, effective marketing campaigns and a pro-active approach to distribution have made us the fourth largest player in a nine-player market after the first year of operations
  • In Vietnam, our networks covered approximately 57% of the total population with commercial activity in 51 out of 63 provinces where we have approximately 1.6 million subscriptions

Overall, we are optimistic about the potential of the South-East Asian mobile market and continue to enhance our presence in this region.

Kyivstar: Financial and Operating Results


    KYIVSTAR (UAH millions)   1Q 10   1Q 09   1Q 10/   4Q 09   1Q 10/
                                               1Q 09            4Q 09
    Net operating revenues     2,573   2,703     -4.8%  2,890    -11.0%
    Adjusted OIBDA             1,307   1,456    -10.2%  1,549    -15.6%
    Adjusted OIBDA margin, %   50.8%   53.9%            53.6%
    Operating income             320     311      2.9%    414    -22.7%
    Operating income margin,
     %                          12.4%   11.5%            14.3%
    SG&A                         782     766      2.1%    782      0.0%
      including Sales &
       Marketing Expenses        134     143     -6.3%    191    -29.8%
      including General &
       Administrative Costs      648     623      4.0%    591      9.6%
    SG&A percentage             30.4%   28.3%            27.1%
    Net income (loss)
     attributable to Kyivstar    224     370    -39.5%    333    -32.7%
    KYIVSTAR OPERATING
     DEVELOPMENT              1Q 10   1Q 09   1Q 10/   4Q 09   1Q 10/
                                               1Q 09            4Q 09
    Mobile subscriptions
     ('000)                   21,934  22,727     -3.5% 22,022     -0.4%
    MOU, min                     425     281     51.2%    396      7.3%
    ARPU mobile, US             $4.8     5.1     -5.9%    5.4    -11.1%
    ARPU mobile, UAH            38.5    39.1     -1.5%   43.5    -11.5%

Quarterly highlights:

  • Quarter-on-quarter revenue dynamics reflect typical seasonality and the results of our efforts to stabilize subscription market share
  • Year-on-year decline in revenues was largely driven by a lower number of active subscriptions caused by an ongoing shift of the Ukrainian mobile market to the “zero on-net” model aimed at price sensitive low-tier customers
  • Reduction of the interconnect rates starting from the beginning of 2010 was another key contributor to the decrease in revenues
  • Year-on-year ARPU remained essentially stable reflecting the high quality of our active customer base and partially offsetting the reduction of interconnect rates
  • Introduction of “zero on-net” pricing model under Djuice brand in the second half of 2009 helped to reduce churn, stabilize subscription market share, and drive growth in MOU
  • Weaker revenues and approximately 50 million Ukrainian Hryvnias of one-off costs related to transaction expenses and shareholder charges led to a decline in OIBDA margin
  • The level of capital investments remained within the normal investment profile and should benefit from the upcoming integration with URS

Overall, the results are in line with our expectations and reflect our focus on stabilization of subscription market share and protecting ARPU.

For more information on financial and operating data for specific countries, as well as reconciliation of OIBDA, please refer to the supplementary file FinancialOperatingQ12010.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

In April 2010, following successful completion of the VimpelCom Ltd.’s exchange offer for shares and American depositary shares of OJSC VimpelCom, VimpelCom’s two strategic shareholders completed the combination of OJSC VimpelCom and Kyivstar under VimpelCom Ltd.

Because VimpelCom Ltd. transaction was completed in the second quarter of 2010, VimpelCom is presenting first quarter results on a pro forma basis assuming the consolidation of OJSC VimpelCom and Kyivstar. This information does not assume that VimpelCom would have reported these results if the exchange offer was completed in the first quarter, nor does it imply that these results will be realized in the future.

The Company’s management will discuss its first quarter 2010 results during a conference call and slide presentation on May 26, 2010 at 4:30 pm CET, (10:30 am US ET). The call and slide presentation may be accessed via webcast at the following URL address http://www.vimpelcom.com. The conference call replay will be available through June 2, 2010. The slide presentation webcast will also be available for download on VimpelCom’s website http://www.vimpelcom.com.

VimpelCom Ltd. consists of telecommunications operators providing voice and data services through a range of wireless, fixed and broadband technologies. The VimpelCom Ltd. group is headquartered in Amsterdam and has operations in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Georgia, Armenia, Kyrgyzstan, Vietnam and Cambodia, covering territory with a total population of about 340 million. VimpelCom Ltd. operating companies provide services under the “Beeline” and “Kyivstar” brands. VimpelCom Ltd.’s ADSs are listed on the New York Stock Exchange under the symbol “VIP”.

This press release contains “forward-looking statements”, as the phrase is defined in Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements include those relating to the benefits of the combination of OJSC VimpelCom and Kyivstar under the Company, the Company’s 2010 capital expenditures projections, and the Company’s development plans in South East Asia. These and other forward-looking statements are based on management’s best assessment of the Company’s strategic and financial position and of future market conditions and trends. These discussions involve risks and uncertainties. The actual outcome may differ materially from these statements as a result of continued volatility in the economies in the markets in which the Company operates, unforeseen developments from competition, governmental regulation of the telecommunications industries, general political uncertainties in the markets in which the Company operates and/or litigation with third parties. The actual outcome may also differ materially if the Company is unable to obtain all necessary corporate approvals relating to its business, if the Company is unable to successfully integrate its Ukrainian operations and other newly-acquired businesses and other factors. There can be no assurance that such risks and uncertainties will not have a material adverse effect on the Company. Certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risk factors described in the Company’s registration statement on Form F-4 filed with the U.S. Securities and Exchange Commission (the “SEC”), OJSC VimpelCom’s public filings with the SEC, including its Annual Report on Form 20-F for the year ended December 31, 2009, and other public filings made by the Company with the SEC, 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.

- Definitions and tables are attached -

Attachment A: Definitions

Adjusted OIBDA is a non-U.S. GAAP financial measure. Adjusted OIBDA, previously referred to as EBITDA or OIBDA by OJSC VimpelCom, is defined as operating income before depreciation, amortization and impairment loss. Our management uses adjusted OIBDA and adjusted OIBDA margin as supplemental performance measures and believes that adjusted OIBDA and adjusted OIBDA margin provide useful information to investors because they are indicators of the strength and performance of the Company’s business operations, including its ability to fund discretionary spending, such as capital expenditures, acquisitions and other investments, as well as indicating its ability to incur and service debt. In addition, the components of adjusted OIBDA include the key revenue and expense items for which the Company’s operating managers are responsible and upon which their performance is evaluated. Adjusted OIBDA also assists management and investors by increasing the comparability of the Company’s performance against the performance of other telecommunications companies that provide OIBDA or EBITDA (earnings before interest, taxes, depreciation and amortization) information. This increased comparability is achieved by excluding the potentially inconsistent effects between periods or companies of depreciation, amortization and impairment loss, which items may significantly affect operating income between periods. However, OJSC VimpelCom’s and Kyivstar’s adjusted OIBDA results and our pro forma adjusted OIBDA results may not be directly comparable to other companies’ reported OIBDA or EBITDA results due to variances and adjustments in the components of OIBDA (including our calculation of adjusted OIBDA) or calculation measures. However, a limitation of adjusted OIBDA’s use as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues or the need to replace capital equipment over time. Reconciliation of adjusted OIBDA to net income, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section as well as in the supplementary file FinancialOperatingQ12010.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

Adjusted OIBDA margin is a non-U.S. GAAP financial measure. We calculate adjusted OIBDA margin as adjusted OIBDA divided by net operating revenues, expressed as a percentage. Reconciliation of adjusted OIBDA margin to net income as a percentage of net operating revenues, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section as well as in the supplementary file FinancialOperatingQ12010.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

Sales and marketing costs (S&M) include marketing, advertising and dealer commissions expenses.

General and administrative costs (G&A) include salaries and outsourcing costs, including related social contributions required by law; stock price-based compensation expenses; repair and maintenance expenses; rent, including lease payments for base station sites; utilities; other miscellaneous expenses, such as insurance, operating taxes, license fees, and accounting, audit and legal fees.

Capital expenditures (Capex) – purchases of new equipment, new construction, upgrades, software, other long lived assets and related reasonable costs incurred prior to intended use of the non current asset, accounted at the earliest event of advance payment or delivery. Long-lived assets acquired in business combinations are not included in capital expenditures.

Net debt is a non-U.S. GAAP financial measure and is calculated as the sum of long-term debt and short-term debt minus cash and cash equivalents and short-term investments. The Company believes that net debt provides useful information to investors because it shows the amount of debt outstanding to be paid after using available cash and cash equivalent, as well as short-term investments. Net debt should not be considered in isolation as an alternative to long-term debt and short-term debt, or any other measure of the company financial position. Reconciliation of net debt to long-term debt and short-term debt, the most directly comparable U.S. GAAP financial measures, is presented below in the reconciliation tables section.

Free cash flow is a non-U.S. GAAP financial measure and is calculated as operating cash flow less Capex. The Company believes that free cash flow provides useful information to investors because it is an indicator of our company’s operational and financial performance and represents our ability to generate cash after accruals required to maintain or expand our asset base. Free cash flow should not be considered in isolation as an alternative to operating cash flow or any other measure of the company cash flows management. Reconciliation of free cash flow to operating cash flow, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section.

Mobile subscriptions are SIM-cards registered in the system as of a measurement date, users of which generated revenue at any time during the three months prior to the measurement date. This includes revenue coming from any incoming and outgoing calls, subscription fee accruals, debits related to service, outgoing SMS, Multimedia Messaging Service (referred to as MMS), data transmission and receipt sessions, but does not include incoming SMS and MMS sent by VimpelCom or abandoned calls. VimpelCom’s total number of mobile subscriptions also includes SIM-cards for use of mobile Internet service via USB modems.

Broadband subscriptions are the customer contracts that served as a basis for revenue generating activity in the three months prior to the measurement date, as a result of activities including monthly internet access using FTTB, xDSL and WiFi technologies as well as mobile internet service via USB modems.

ARPU (Monthly Average Revenue per User) is calculated by dividing service revenue during the relevant period, including roaming revenue and interconnect revenue, but excluding revenue from connection fees, sales of handsets and accessories and other non-service revenue, by the average number of subscriptions during the period and dividing by the number of months in that period.

MOU (Monthly Average Minutes of Use per User) is calculated by dividing the total number of minutes of usage for incoming and outgoing calls during the relevant period (excluding guest roamers) by the average number of mobile subscriptions during the period and dividing by the number of months in that period.

Households passed are households located within buildings, in which indoor installation of all the FTTB equipment necessary to install terminal residential equipment has been completed.

Mobile services are wireless voice and data transmission services excluding WiFi.

VAS (value added services) includes short messages (“SMS”), multimedia messages (“MMS”), caller number identification, call waiting, data transmission, mobile Internet, downloadable content and other services.

CIS Geographic Segment for the purpose of VimpelCom Ltd. reporting includes our operations in the following countries: Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, Armenia and Georgia as well as OJSC VimpelCom’s operations in Ukraine. Starting from the next quarter we intend to include OJSC VimpelCom’s operation in Ukraine in a separate reporting segment together with Kyivstar.

SEA - VimpelCom operations in South-East Asia, which include operations in Cambodia and VimpelCom’s respective equity in net results of operations of the Company’s Vietnamese associate GTEL-Mobile JSC (“GTEL-Mobile”).

Reportable segments – Historically intersegment revenues were eliminated in consolidation. Starting from January 1, 2010, OJSC VimpelCom changed the approach to intersegment revenues and expenses in a way that operating revenues and operating expenses of Russia mobile and Russia fixed segments from each other and operating revenues and operating expenses of CIS mobile and CIS fixed segments from each other are eliminated on the level of a segment, as well as certain expenses and revenues were allocated to allow revenues and expenses related to those revenues to produce financial result within one segment. Other intersegment revenues and expenses are eliminated at the consolidated level. The comparative information was retrospectively adjusted.

Attachment B: VimpelCom financial statements


                              VimpelCom Limited
             Unaudited Combined Statement of Income (Pro-forma)

                                             Three months ended March
                                                     31, 2010
                                                                  2010
                                                                  ----
                                                (In thousands of US
                                                     dollars)
    Operating revenues:
    Service revenues                                         2,498,176
    Sales of equipment and accessories                          28,424
    Other revenues                                               9,992
                                                                 -----
    Total operating revenues                                 2,536,592

    Revenue based tax                                           (1,633)
                                                                ------
    Net operating revenues                                   2,534,959

    Operating expenses:
    Service costs                                              536,783
    Cost of equipment and accessories                           31,594
    Selling, general and administrative
     expenses                                                  741,090
    Depreciation                                               408,117
    Amortization                                               134,075
    Impairment loss                                                612
    Provision for doubtful accounts                             20,585
    Total operating expenses                                 1,872,856
                                                             ---------

    Operating income                                           662,103

    Other income and expenses:
    Interest income                                             15,113
    Net foreign exchange (loss)/gain                           100,365
    Interest expense                                          (141,844)
    Equity in net gain/(loss) of
     associates                                                 (3,784)
    Other (expenses)/income, net                               (48,487)
    Total other income and expenses                            (78,637)
                                                               -------

    Income before income taxes                                 583,466

    Income tax expense                                         161,079
                                                               -------

    Net income/(loss)                                          422,387
    Net income/(loss) attributable to
     the noncontrolling interest                                10,166
    Net income/(loss) attributable to
     VimpelCom                                                 412,221
                                                               =======

OJSC VimpelCom Unaudited Condensed Consolidated Statement of Income


                                               Three months ended
                                                    March 31,
                                                 2010          2009
                                                 ----          ----
                                               (In thousands of US
                                                    dollars)
    Operating revenues:
    Service revenues                       $2,202,629    $1,942,761
    Sales of equipment and accessories         26,579        28,680
    Other revenues                              3,553         3,836
                                                -----         -----
    Total operating revenues                2,232,761     1,975,277

    Revenue based tax                          (1,633)       (2,262)
                                               ------        ------
    Net operating revenues                  2,231,128     1,973,015

    Operating expenses:
    Service costs                             501,588       440,237
    Cost of equipment and accessories          26,350        28,666
    Selling, general and administrative
     expenses                                 632,406       537,541
    Depreciation                              352,553       308,637
    Amortization                               66,694        72,601
    Provision for doubtful accounts            18,643        17,861
    Total operating expenses                1,598,234     1,405,543
                                            ---------     ---------

    Operating income                          632,894       567,472

    Other income and expenses:
    Interest income                            11,546        14,813
    Net foreign exchange (loss)/gain          104,934      (745,763)
    Interest expense                         (141,660)     (137,393)
    Equity in net gain/(loss) of
     associates                                (3,784)      (35,312)
    Other (expenses)/income, net              (48,345)       (5,473)
    Total other income and expenses           (77,309)     (909,128)
                                              -------      --------

    Income before income taxes                555,585      (341,656)

    Income tax expense                        153,049       (34,100)
                                              -------       -------

    Net income/(loss)                         402,536      (307,556)
    Net income/(loss) attributable to
     the noncontrolling interest               10,166       (10,924)
    Net income/(loss) attributable to
     OJSC VimpelCom                          $392,370     $(296,632)
                                             ========     =========

OJSC VimpelCom Unaudited Condensed Consolidated Balance Sheets


                                         March 31,       December 31,

                                                2010                2009
                                           (In thousands of US dollars,
                                              except share amounts)
    Assets
    Current assets:
    Cash and cash equivalents             $1,529,605          $1,446,949
    Trade accounts receivable, net of
     allowance for doubtful accounts         449,599             392,365
    Inventory                                 63,310              61,919
    Deferred income taxes                     89,178              91,493
    Input value added tax                    135,285              96,994
    Due from related parties                 187,260             249,631
    Other current assets                     430,640             627,257
                                             -------             -------
    Total current assets                   2,884,877           2,966,608

    Property and equipment, net            5,556,235           5,561,569
    Telecommunications licenses, net         535,024             542,597
    Goodwill                               3,674,705           3,284,293
    Other intangible assets, net             689,289             700,365
    Software, net                            441,514             448,255
    Investments in associates                432,562             436,767
    Other assets                             817,685             792,087
    Total assets                         $15,031,891         $14,732,541
                                         ===========         ===========

    Liabilities, redeemable
     noncontrolling interest and equity
    Current liabilities:
    Accounts payable                        $525,013            $545,690
    Due to employees                         156,019             113,368
    Due to related parties                     9,998               9,211
    Accrued liabilities                      399,918             315,666
    Taxes payable                            337,437             212,767
    Customer advances, net of VAT            315,088             376,121
    Customer deposits                         29,109              28,386
    Short-term debt                        1,356,396           1,813,141
                                           ---------           ---------
    Total current liabilities              3,128,978           3,414,350

    Deferred income taxes                    544,932             596,472
    Long-term debt                         5,291,747           5,539,906
    Other non-current liabilities            178,118             164,636
    Commitments, contingencies and
     uncertainties                                 -                   -
                                                 ---                 ---
    Total liabilities                      9,143,775           9,715,364

    Redeemable noncontrolling interest       511,942             508,668

    Equity:
    Convertible voting preferred stock
     (.005 rubles nominal value per
     share), 10,000,000 shares
     authorized; 6,426,600 shares issued
     and outstanding                               -                   -
    Common stock (.005 rubles nominal
     value per share), 90,000,000 shares
     authorized;  51,281,022 shares
     issued (December 31, 2009:
     51,281,022);  50,714,662 shares
     outstanding (December 31, 2009:
     50,714,579)                                  92                  92
    Additional paid-in capital             1,152,515           1,143,657
    Retained earnings                      4,466,862           4,074,492
    Accumulated other comprehensive
     (loss)                                 (418,444)           (488,277)
    Treasury stock, at cost, 566,360
     shares of common stock (December
     31, 2009: 566,443)                     (223,406)           (223,421)
    Total OJSC VimpelCom shareholders'
     equity                                4,977,619           4,506,543

    Noncontrolling interest                  398,555               1,966
    Total equity                           5,376,174           4,508,509
                                           ---------           ---------
    Total liabilities, redeemable
     noncontrolling interest and equity  $15,031,891         $14,732,541
                                         ===========         ===========

OJSC VimpelCom Unaudited Condensed Consolidated Statements of Cash Flows


                                                Three months ended March
                                                          31,
                                                     2010          2009
                                                  (In thousands of US
                                                        dollars)

    Operating activities

    Net cash provided by operating
     activities                                   803,279       838,187

    Investing activities
    Purchases of property and equipment          (144,113)     (148,834)
    Purchases of intangible assets                 (8,503)       (8,759)
    Purchases of software                         (57,379)      (42,816)
    Cash increase due to Sky Mobile
     consolidation                                  4,702             -
    Loan granted                                   (5,044)            -
    Proceeds from withdrawal of deposits          225,743             -
    Purchases of other assets, net                 (8,051)       (3,049)
                                                   ------        ------
    Net cash used in investing activities           7,355      (203,458)

    Financing activities
    Proceeds from bank and other loans            203,227             -
    Repayments of bank and other loans           (927,551)     (525,992)
    Payments of fees in respect of debt
     issues                                           (83)       (8,166)
    Purchase of noncontrolling interest in
     consolidated subsidiaries                     (2,294)            -
    Payment of dividends                           (2,049)            -
    Payment of dividends to noncontrolling
     interest                                      (7,874)            -
                                                   ------           ---
    Net cash (used in)/provided by
     financing activities                        (736,624)     (534,158)

    Effect of exchange rate changes on cash
     and cash equivalents                           8,646       (49,099)
                                                    -----       -------

    Net  increase/(decrease) in cash and
     cash equivalents                              82,656        51,472
    Cash and cash equivalents at beginning
     of period                                  1,446,949       914,683
    Cash and cash equivalents at end of
     period                                    $1,529,605      $966,155
                                               ==========      ========

OJSC VimpelCom Unaudited Consolidated Statements of Cash Flows (Continued)


                                                      Three months ended March
                                                                 31,
                                                            2010         2009
                                                         (In thousands of US
                                                              dollars)
    Supplemental cash flow information
    Cash paid during the period:
      Income tax                                        $175,208      $30,850
      Interest                                           118,217       88,492

    Non-cash activities:
      Accounts payable for property, equipment and
       other long-lived assets                          (138,899)     308,273

Attachment C: Reconciliation Tables (Unaudited)

Reconciliation of Combined Adjusted OIBDA (pro-forma)

(In millions of US$)


    VimpelCom Ltd. (Pro-forma),  OIBDA, US$
     mln                                           1Q 10
    Adjusted OIBDA                                   1,205
      Depreciation                                    (408)
      Amortization                                    (134)
      Impairment loss                                   (1)
    Operating income                                   662
      Interest income                                   15
      Net foreign exchange gain/(loss)                 100
      Interest expense                                (142)
      Equity in net gain/(loss) of associates           (4)
      Other (expense)/income, net                      (48)
      Income tax expense                              (161)
    Net income/(loss)                                  422

Reconciliation of Combined Adjusted OIBDA Margin (pro-forma)


    VimpelCom Ltd. (Pro-forma), %                 1Q 10
    Adjusted OIBDA margin as a percentage of
     net operating revenues                           47.5%
      Depreciation                                  (16.1%)
      Amortization                                   (5.3%)
      Impairment loss                                  0.0%
    Operating income                                  26.1%
      Interest income                                  0.6%
      Net foreign exchange gain/(loss)                 3.9%
      Interest expense                               (5.6%)
      Equity in net gain/(loss) of associates        (0.2%)
      Other (expense)/income, net                    (1.9%)
      Income tax expense                             (6.3%)
    Net income/(loss)                                 16.6%

Reconciliation of Consolidated Adjusted OIBDA of OJSC VimpelCom

(In millions of US$)


    OJSC VimpelCom, OIBDA, US$ mln           1Q 10       1Q 09       4Q 09
    Adjusted OIBDA                             1,052         949       1,088
      Depreciation                              (352)       (309)       (393)
      Amortization                               (67)        (73)        (87)
    Operating income                             633         567         608
      Interest income                             12          15          10
      Net foreign exchange gain/(loss)           105        (746)        (14)
      Interest expense                          (142)       (137)       (164)
      Equity in net gain/(loss) of
       associates                                 (4)        (35)        (10)
      Other (expense)/income, net                (48)         (6)        (24)
      Income tax expense                        (153)         34        (125)
    Net income/(loss)                            403        (308)        281

Reconciliation of Consolidated Adjusted OIBDA Margin of OJSC VimpelCom


    OJSC VimpelCom, OIBDA Margin, %         1Q 10       1Q 09       4Q 09
    Adjusted OIBDA margin as a
     percentage of net operating
     revenues                                   47.2%       48.1%       47.1%
      Depreciation                            (15.8%)     (15.7%)     (17.0%)
      Amortization                             (3.0%)      (3.7%)      (3.8%)
    Operating income                            28.4%       28.7%       26.3%
      Interest income                            0.5%        0.8%        0.4%
      Net foreign exchange gain/(loss)           4.7%     (37.8%)      (0.6%)
      Interest expense                         (6.4%)      (6.9%)      (7.1%)
      Equity in net gain/(loss) of
       associates                              (0.2%)      (1.8%)      (0.4%)
      Other (expense)/income, net              (2.0%)      (0.3%)      (1.0%)
      Income tax expense                       (6.9%)        1.7%      (5.4%)
    Net income/(loss)                           18.1%     (15.6%)       12.2%

Reconciliation of Consolidated Adjusted OIBDA of Kyivstar

(In millions of US$)


    KYIVSTAR, OIBDA US$ mln                   1Q 10    1Q 09    4Q 09
    Adjusted OIBDA                                164      189      194
      Depreciation                                (56)     (60)     (54)
      Amortization                                (67)     (82)     (78)
      Impairment loss                              (1)      (7)     (10)
    Operating income                               40       40       52
      Interest income                               4       36        5
      Net foreign exchange gain/(loss)             (5)     (10)      (2)
      Interest expense                              0       (3)       0
      Equity in net gain/(loss) of associates       0        0        0
      Other (expense)/income, net                   0        0        0
      Income tax expense                          (11)     (15)     (13)
    Net income/(loss)                              28       48       42

Reconciliation of Consolidated Adjusted OIBDA Margin of Kyivstar


    KYIVSTAR, OIBDA Margin,%                  1Q 10     1Q 09     4Q 09
    Adjusted OIBDA margin as a percentage of
     net operating revenues                       50.9%     53.8%     53.6%
      Depreciation                              (17.4%)   (17.1%)   (14.9%)
      Amortization                              (20.8%)   (23.4%)   (21.5%)
      Impairment loss                            (0.3%)    (2.0%)    (2.8%)
    Operating income                              12.4%     11.4%     14.4%
      Interest income                              1.2%     10.3%      1.4%
      Net foreign exchange gain/(loss)           (1.5%)    (2.8%)    (0.6%)
      Interest expense                             0.0%    (0.9%)      0.0%
      Equity in net gain/(loss) of associates      0.0%      0.0%      0.0%
      Other (expense)/income, net                  0.0%      0.0%      0.0%
      Income tax expense                         (3.4%)    (4.3%)    (3.6%)
    Net income/(loss)                              8.7%     13.7%     11.6%

Reconciliation of Consolidated Adjusted OIBDA of Kyivstar

(In millions of UAH)


    KYIVSTAR, UAH mln                         1Q 10    1Q 09    4Q 09
    Adjusted OIBDA                              1,307    1,456    1,549
      Depreciation                               (444)    (460)    (434)
      Amortization                               (538)    (630)    (627)
      Impairment loss                              (5)     (55)     (74)
    Operating income                              320      311      414
      Interest income                              28      280       43
      Net foreign exchange gain/(loss)            (36)     (77)     (13)
      Interest expense                             (1)     (26)      (1)
      Equity in net gain/(loss) of associates       0        0        0
      Other (expense)/income, net                  (1)       0       (4)
      Income tax expense                          (86)    (118)    (106)
    Net income/(loss)                             224      370      333

Reconciliation of Consolidated Adjusted OIBDA Margin of Kyivstar

(based on UAH million OIBDA)


    KYIVSTAR, OIBDA Margin, %                 1Q 10     1Q 09     4Q 09
    Adjusted OIBDA margin as a percentage of
     net operating revenues                       50.8%     53.9%     53.6%
      Depreciation                              (17.3%)   (17.0%)   (15.0%)
      Amortization                              (20.9%)   (23.3%)   (21.7%)
      Impairment loss                            (0.2%)    (2.1%)    (2.6%)
    Operating income                              12.4%     11.5%     14.3%
      Interest income                              1.1%     10.4%      1.5%
      Net foreign exchange gain/(loss)           (1.4%)    (2.8%)    (0.5%)
      Interest expense                             0.0%    (1.0%)    (0.0%)
      Equity in net gain/(loss) of associates      0.0%      0.0%      0.0%
      Other (expense)/income, net                  0.0%      0.0%    (0.1%)
      Income tax expense                         (3.3%)    (4.4%)    (3.7%)
    Net income/(loss)                              8.7%     13.7%     11.5%

Reconciliation of OJSC VimpelCom Consolidated Net Debt (as of March 31, 2010)

(In millions of US$)


    OJSC VimpelCom Net Debt                 1Q 10
    Net debt                                 4,928
      Long - term debt                       5,292
      Short-term debt                        1,356
      Cash and cash equivalents             (1,530)
      Short-term investments                  (190)

Attachment D: Capex Development


    CAPEX (in US$ millions)   1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                1Q 09             4Q 09
    Total capex OJSC
     VimpelCom                 179.3    113.0     58.7%   422.7    -57.6%
      Russia                   123.9     90.5     36.9%   331.5    -62.6%
      CIS                       38.3      9.5    303.2%    68.1    -43.8%
         Kazakhstan              5.9      3.3     78.8%    19.5    -69.7%
         Ukraine (URS+GT)        6.0      2.9    106.9%    11.0    -45.5%
         Armenia                 3.1      0.2   1450.0%     7.8    -60.3%
         Uzbekistan             17.9      1.1   1527.3%    21.1    -15.2%
         Tajikistan              0.1      0.4    -75.0%     5.4    -98.1%
         Georgia                 4.3      1.6    168.8%     3.3     30.3%
         Kyrgyzstan              1.0        -    n/a          -    n/a
      SEA                       16.9     12.9     31.0%    22.8    -25.9%
    Kyivstar                    55.8     42.3     31.9%    41.7     33.8%

Attachment E: OJSC VimpelCom Financial and Operational highlights – CIS

Revenues Development


    KAZAKHSTAN (KZT mln)           1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues         23,555   21,373     10.2%  25,564     -7.9%
      Mobile                       23,079   21,055      9.6%  25,151     -8.2%
      Fixed                           476      318     49.7%     413     15.3%

    UKRAINE (URS+GT) (UAH mln)     1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues            359      365     -1.6%     385     -6.8%
      Mobile                          183      198     -7.6%     190     -3.7%
      Fixed                           176      167      5.4%     195     -9.7%

    ARMENIA (AMD mln)              1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues         16,016   17,066     -6.2%  18,202    -12.0%
      Mobile                        5,787    6,888    -16.0%   7,046    -17.9%
      Fixed                        10,229   10,178      0.5%  11,156     -8.3%

    UZBEKISTAN (US$ mln)*          1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues           45.3     58.5    -22.6%    50.2     -9.8%
      Mobile                         42.9     55.5    -22.7%    47.5     -9.7%
      Fixed                           2.4      3.0    -20.0%     2.7    -11.1%

    TAJIKISTAN (US$ mln)*          1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues           14.8     14.4      2.8%    15.6     -5.1%
      Mobile                         13.3     14.4     -7.6%    15.6    -14.7%
      Fixed                           1.5        -                 -

    GEORGIA (GEL mln)              1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues           18.8     10.1     86.1%    17.1      9.9%
      Mobile                         18.3     10.1     81.2%    17.1      7.0%
      Fixed                           0.5        -                 -

    KYRGYZSTAN (KGS mln)           1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Mobile net operating
     revenues                       1,138        -    n/a          -    n/a


    CIS REVENUES** (US$ mln)       1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues          339.8    332.6      2.2%   341.6     -0.5%
        Mobile                      283.8    274.3      3.5%   282.8      0.4%
        Fixed                        56.0     58.3     -3.9%    58.8     -4.8%

* US$ is the functional currency in Uzbekistan and Tajikistan.

** Mobile and fixed revenues for all periods were recalculated – please see definition of reportable segments in Attachment A.

OIBDA Development


    KAZAKHSTAN (KZT mln)           1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Adjusted OIBDA total           13,069   10,964     19.2%  14,083     -7.2%
        Mobile                     13,008   10,960     18.7%  14,082     -7.6%
        Fixed                          61        4   1425.0%       1   6000.0%
    Adjusted OIBDA margin, %        55.5%    51.3%             55.1%


    UKRAINE (URS+GT) (UAH mln)     1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Adjusted OIBDA total             80.7     49.8     62.0%    60.8     32.7%
        Mobile                       28.3      9.9    185.9%    18.7     51.3%
        Fixed                        52.4     39.9     31.3%    42.1     24.5%
    Adjusted OIBDA margin, %        22.5%    13.6%             15.8%


    ARMENIA (AMD mln)              1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Adjusted OIBDA total            7,348    8,849    -17.0%   8,748    -16.0%
        Mobile                      2,377    3,407    -30.2%   2,902    -18.1%
        Fixed                       4,971    5,442     -8.7%   5,846    -15.0%
    Adjusted OIBDA margin, %        45.9%    51.9%             48.1%


    UZBEKISTAN (US$ mln)*          1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Adjusted OIBDA total             19.6     33.1    -40.8%    23.0    -14.8%
        Mobile                       18.6     31.9    -41.7%    22.0    -15.5%
        Fixed                         1.0      1.2    -16.7%     1.0      0.0%
    Adjusted OIBDA margin, %        43.3%    56.6%             45.8%


    TAJIKISTAN (US$ mln)*          1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Adjusted OIBDA total              4.4      4.9    -10.2%     7.1    -38.0%
        Mobile                        4.1      4.9    -16.3%     7.1    -42.3%
        Fixed                         0.3        -    n/a          -    n/a
    Adjusted OIBDA margin, %        29.7%    34.0%             45.5%


    GEORGIA (GEL mln)              1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Adjusted OIBDA Total              2.0     -0.9    n/a        0.6    233.3%
        Mobile                       1.93     -0.9    n/a        0.6    221.7%
        Fixed                        0.03        -    n/a          -    n/a
    Adjusted OIBDA margin, %        10.6%   n/a                 3.5%


    KYRGYZSTAN (KGS mln)           1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Adjusted Mobile OIBDA             426        -    n/a          -    n/a
    Adjusted Mobile OIBDA
     margin, %                      37.4%       -    n/a          -    n/a


    CIS OIBDA (US$ mln)      1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
                                            1Q 09           4Q 09
    Adjusted OIBDA total      152.4  149.7     1.8%  154.7    -1.5%
        Mobile                131.1  126.6     3.6%  133.1    -1.5%
        Fixed                  21.3   23.1    -7.8%   21.6    -1.4%
    Adjusted OIBDA margin, %  44.8%  45.0%           45.3%

* US$ is the functional currency in Uzbekistan and Tajikistan.

Operating Highlights


    KAZAKHSTAN                      1Q 10   1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Mobile subscriptions ('000)      6,062   6,377     -4.9%   6,135     -1.2%
    MOU, min                         102.2    81.1     26.0%   102.3     -0.1%
    ARPU mobile, US                   $8.4     7.8      7.7%     8.5     -1.2%
    ARPU mobile, (KZT)               1,264   1,099     15.0%   1,279     -1.2%
    Broadband internet
     subscriptions ('000)              2.7     0.2   1250.0%     1.3    107.7%


    UKRAINE (URS+GT)               1Q 10   1Q 09   1Q 10/    4Q 09   1Q 10/
                                                    1Q 09             4Q 09
    Mobile subscriptions  ('000)    1,951   1,894      3.0%   2,005     -2.7%
    MOU, min                        197.2   213.3     -7.5%   201.3     -2.0%
    ARPU mobile, US                  $3.8     4.5    -15.6%     3.9     -2.6%
    ARPU mobile, (UAH)               32.4    34.6     -6.4%    31.9      1.6%
    Broadband internet
     subscriptions ('000)           133.8    39.6    237.9%   109.3     22.4%


    ARMENIA                         1Q 10   1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Mobile subscriptions ('000)        549     481     14.1%     545      0.7%
    MOU, min                         345.6   174.7     97.8%   268.2     28.9%
    ARPU mobile, US                   $9.0    13.9    -35.3%    11.5    -21.7%
    ARPU mobile, (AMD)               3,478   4,574    -24.0%   4,433    -21.5%
    Broadband internet
     subscriptions ('000)             31.2    15.3    103.9%    26.2     19.1%


    UZBEKISTAN                      1Q 10   1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Mobile subscriptions ('000)      3,489   3,653     -4.5%   3,515     -0.7%
    MOU, min                         369.2   238.6     54.7%   387.3     -4.7%
    ARPU mobile, US                   $4.2     5.2    -19.2%     4.6     -8.7%
    Broadband internet
     subscriptions ('000)             10.0     6.8     47.1%     9.0     11.1%


    TAJIKISTAN                      1Q 10   1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Mobile subscriptions ('000)        820     722     13.6%     743     10.4%
    MOU, min                         157.9   171.7     -8.0%   173.6     -9.0%
    ARPU mobile, US                   $5.6     7.1    -21.1%     7.2    -22.2%


    GEORGIA                         1Q 10   1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Mobile subscriptions ('000)        431     246     75.2%     399      8.0%
    MOU, min                         125.0   121.2      3.1%   131.1     -4.7%
    ARPU mobile, US                   $7.5     8.4    -10.7%     8.4    -10.7%
    ARPU mobile, (GEL)                13.7    14.0     -2.1%    15.2     -9.9%


    KYRGYZSTAN                      1Q 10   1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Mobile subscriptions ('000)      1,774       -                 -
    MOU, min                         193.9       -                 -
    ARPU mobile, US                   $4.7       -                 -
    ARPU mobile, (KGS)                 208       -                 -

* We no longer provide information on subscriptions market share, because different churn policies used by mobile service providers result in reported subscriptions market share figures that are not representative.

Attachment F: Key Financial Results in US Dollars

OJSC VimpelCom — Russia


    RUSSIA (US$ millions)          1Q 10   1Q 09   1Q 10/   4Q 09   1Q 10/
                                                    1Q 09            4Q 09
    Net operating revenues          1,919   1,661     15.5%  1,996     -3.9%
    Adjusted OIBDA                    907     803     13.0%    941     -3.6%
    Adjusted OIBDA margin, %        47.3%   48.3%            47.1%
    Operating income                  586     522     12.3%    590     -0.7%
    Operating income margin, %      30.5%   31.4%            29.6%
    SG&A                              529     441     20.0%    578     -8.5%
      including Sales & Marketing
       Expenses                       166     132     25.8%    191    -13.1%
      including General &
       Administrative Costs           363     309     17.5%    387     -6.2%
    SG&A percentage                  27.6%   26.6%            29.0%
    Net income (loss) attributable
     to OJSC VimpelCom                386    -244    n/a       313     23.3%


    RUSSIA REVENUES (US$ millions) 1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
                                                  1Q 09           4Q 09
    Net operating revenues          1,919  1,661    15.5%  1,996    -3.9%
      Mobile revenues               1,602  1,344    19.2%  1,660    -3.5%
      Fixed-line revenues             317    317     0.0%    336    -5.7%


    RUSSIA OIBDA DEVELOPMENT       1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
    (US$ millions)                                1Q 09           4Q 09
    Adjusted OIBDA total              907    803    13.0%    941    -3.6%
      Mobile                          816    695    17.4%    843    -3.2%
      Fixed-line                       91    108   -15.7%     98    -7.1%
    Adjusted total OIBDA margin, %  47.3%  48.3%           47.1%
    Mobile, %                       50.9%  51.7%           50.8%
    Fixed-line, %                   28.7%  34.1%           29.2%

* Please find information on respective operating income amounts in the supplementary file FinancialOperatingQ12010.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

Kyivstar — Ukraine


    KYIVSTAR (US$ millions)              1Q 10  1Q 09 1Q 10/ 4Q 09 1Q 10/
                                                       1Q 09        4Q 09
    Net operating revenues                  322    351   -8.3%   362 -11.0%
    Adjusted OIBDA                          164    189  -13.2%   194 -15.5%
    Adjusted OIBDA margin, %              50.9%  53.8%         53.6%
    Operating income                         40     40    0.0%    52 -23.1%
    Operating income margin, %            12.4%  11.4%         14.4%
    SG&A                                     98     99   -1.0%    98   0.0%
      including Sales & Marketing
       Expenses                              17     18   -5.6%    24 -29.2%
      including General & Administrative
       Costs                                 81     81    0.0%    74   9.5%
    SG&A percentage                        30.4%  28.2%         27.1%
    Net income (loss) attributable to
     Kyivstar                                28     48  -41.7%    42 -33.3%

OJSC VimpelCom — CIS Revenues in US$


    KAZAKHSTAN (US$ mln)           1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues          159.5    153.9      3.6%   170.4     -6.4%
      Mobile                        156.3    151.6      3.1%   167.7     -6.8%
      Fixed                           3.2      2.3     39.1%     2.7     18.5%

    UKRAINE (URS+GT) (US$ mln)     1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues           44.9     47.4     -5.3%    48.1     -6.7%
      Mobile                         22.9     25.7    -10.9%    23.8     -3.8%
      Fixed                          22.0     21.7      1.4%    24.3     -9.5%

    ARMENIA (US$ mln)              1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues           41.7     52.7    -20.9%    47.3    -11.8%
      Mobile                         15.1     21.3    -29.1%    18.3    -17.5%
      Fixed                          26.6     31.4    -15.3%    29.0     -8.3%

    UZBEKISTAN (US$ mln)           1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues           45.3     58.5    -22.6%    50.2     -9.8%
      Mobile                         42.9     55.5    -22.7%    47.5     -9.7%
      Fixed                           2.4      3.0    -20.0%     2.7    -11.1%

    TAJIKISTAN (US$ mln)           1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues           14.8     14.4      2.8%    15.6     -5.1%
      Mobile                         13.3     14.4     -7.6%    15.6    -14.7%
      Fixed                           1.5        -    n/a          -    n/a

    GEORGIA (US$ mln)              1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating revenues           10.9      6.0     81.7%    10.2      6.9%
      Mobile                         10.6      6.0     76.7%    10.2      3.9%
      Fixed                           0.3        -    n/a          -    n/a

    KYRGYZSTAN (US$ mln)           1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Mobile net operating
     revenues                        25.5        -    n/a          -    n/a

OJSC VimpelCom — CIS Adjusted OIBDA in US$


    KAZAKHSTAN (US$ mln)       1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
                                             1Q 09            4Q 09
    Adjusted OIBDA total         88.5   78.7    12.5%   93.9    -5.8%
        Mobile                   88.1   78.7    11.9%   93.9    -6.2%
        Fixed                     0.4    0.0  n/a        0.0   n/a
    Adjusted OIBDA margin, %    55.5%  51.1%           55.1%

    UKRAINE (URS+GT) (US$ mln) 1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
                                             1Q 09            4Q 09
    Adjusted OIBDA total         10.1    6.3    60.3%    7.6    32.9%
        Mobile                    3.5    1.2   191.7%    2.2    59.1%
        Fixed                     6.6    5.1    29.4%    5.4    22.2%
    Adjusted OIBDA margin, %    22.5%  13.3%           15.8%

    ARMENIA (US$ mln)          1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
                                             1Q 09            4Q 09
    Adjusted OIBDA total         19.1   27.2   -29.8%   22.7   -15.9%
        Mobile                    6.2   10.5   -41.0%    7.6   -18.4%
        Fixed                    12.9   16.7   -22.8%   15.1   -14.6%
    Adjusted OIBDA margin, %    45.8%  51.6%           48.0%

    UZBEKISTAN (US$ mln)       1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
                                             1Q 09            4Q 09
    Adjusted OIBDA total         19.6   33.1   -40.8%   23.0   -14.8%
        Mobile                   18.6   31.9   -41.7%   22.0   -15.5%
        Fixed                     1.0    1.2   -16.7%    1.0     0.0%
    OIBDA Margin, %             43.3%  56.6%           45.8%

    TAJIKISTAN (US$ mln)       1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
                                             1Q 09            4Q 09
    Adjusted OIBDA total          4.4    4.9   -10.2%    7.1   -38.0%
        Mobile                    4.1    4.9   -16.3%    7.1   -42.3%
        Fixed                     0.3      -   n/a         -   n/a
    Adjusted OIBDA margin, %    29.7%  34.0%           45.5%

    GEORGIA (US$ mln)          1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
                                             1Q 09            4Q 09
    Adjusted OIBDA total          1.1   -0.5  n/a        0.4   175.0%
        Mobile                    1.1   -0.5  n/a        0.4   175.0%
        Fixed                    0.02      -  n/a          -   n/a
    Adjusted OIBDA margin, %    10.1% n/a               3.9%

    KYRGYZSTAN (US$ mln)       1Q 10  1Q 09  1Q 10/   4Q 09  1Q 10/
                                             1Q 09            4Q 09
    Adjusted mobile OIBDA         9.5      -  n/a          -   n/a
    Adjusted mobile OIBDA
     margin, %                  37.3%     -               -

* Please find information on respective operating income amounts in the supplementary file FinancialOperatingQ12010.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

Attachment G: Operational Highlights – South-East Asia


    SEA (US$ mln)                  1Q 10    1Q 09   1Q 10/    4Q 09   1Q 10/
                                                     1Q 09             4Q 09
    Net operating mobile
     revenues                         4.4      0.0    n/a        2.4     83.3%
    Adjusted mobile OIBDA            -5.9     -1.6    n/a       -6.4    n/a

Attachment H: Average Rates of Functional Currencies to USD*


    Functional Currency/    4Q 08    1Q 09    2Q 09    3Q 09    4Q 09    1Q 10
    1 US$
    Russia           RUR  27.27    33.93    32.21    31.33    29.47    29.89
    Kazakhstan       KZT 120.16   138.85   150.47   150.75   149.77   147.68
    Ukraine          UAH   6.21     7.70     7.66     7.82     7.99     7.99
    Armenia          AMD 306.47   325.11   370.46   372.66   384.40   384.26
    Georgia          GEL   1.55     1.67     1.66     1.68     1.68     1.72
    Kyrgyzstan       KGS      -        -        -        -        -    44.55

  • Functional currencies in Tajikistan, Uzbekistan and Cambodia are US dollars.

SOURCE VimpelCom Ltd.


Source: newswire



comments powered by Disqus