VimpelCom

1
VimpelCom

• Presentation of 3Q2005
• Financial and Operating Results

November 17, 2005
2
Disclaimer
This presentation contains "forward-looking
statements", as the phrase is defined in Section
27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These
statements relate, in part, to the Companys
strategy and development plans, such as national
and CIS growth, the Companys subscriber growth,
planned capital investments, cash growth and
position, and the benefits to the Company of its
acquisition of URS. 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 in Russia and the CIS. These
discussions involve risks and uncertainties. The
actual outcome may differ materially from these
statements as a result of risks and uncertainties
relating to 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/or litigation by third parties or our
shareholders (including Telenor). The actual
outcome may also differ materially if the
VimpelCom Group (including URS) is unable to (i)
comply with the terms of its licenses and
frequencies, (ii) obtain sufficient funding
and/or (iii) obtain all necessary corporate
approvals relating to the business of VimpelCom
and its subsidiaries, including URS (including
approval of the budget, funding, specific
transactions, and operational and other issues by
VimpelCom and its subsidiaries, including URS),
and other factors. There can be no assurance that
these risks and uncertainties will not have a
material adverse effect on the VimpelCom Group,
that the VimpelCom Group will be able to meet its
capital investment plans, that URS subscriber
growth will meet expectations, that the
transactions with Ericsson (which are subject to
conditions precedent) will be consummated, that
URS will become profitable, or that the Company
will be successful in integrating URS into the
VimpelCom Group. There can also be no assurance
that there will not be challenges with respect to
whether the shareholder meeting that approved the
URS acquisition has complied with Russian law,
whether corporate approvals obtained were
sufficient to complete the transactions on the
terms thereof and/or whether further corporate
approvals were required. There can also be no
assurance that the decision and results of the
shareholder meeting, transactions concluded, and
actions taken by VimpelCom or URS will not be
challenged by third parties or our shareholders
(including Telenor). If any such challenges are
successful, including if they were to lead to the
possible unwinding of the URS acquisition or
other transactions or the payment of damages,
such challenges could have a material adverse
effect on the Company, its operations and its
financial condition. Certain factors that could
cause actual results to differ materially from
those discussed in any forward-looking statements
include the risks described in the Company's
Annual Report on Form 20-F for the year ended
December 31, 2004 and other public filings made
by the Company with the United States Securities
and Exchange Commission, which risk factors are
incorporated herein by reference. VimpelCom
disclaims any obligation to update developments
of these risk factors or to announce publicly any
revision to any of the forward-looking statements
contained in this release, or to make corrections
to reflect future events or developments.
3
Welcome Remarks

• Alexander Izosimov, Chief Executive Officer

4
Strong Subscriber Growth
77.0
31.0
67.2
58.9
51.2
25.3
40.7
21.6
18.3
15.6
Subscribers in Russia
Subscribers in Kazakhstan
Penetration
Penetration
Source VimpelCom, independent sources,
competitors data
5
VimpelComs Strategy
Extract value from Win the
regional Expansion outside
existing operations growth game
Russia

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

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

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

Ensure cost efficiency

6
VimpelCom 3Q05 Financial Highlights
92.9
50.5

52.2
Source VimpelCom
7
Operating Highlights

• 42.4 million subscribers as of November 17, 2005,
  including 1.8 million in Kazakhstan and 0.2
  million in Ukraine
• Stable ARPU
• Expansion into Ukraine
• Acquisition in Sakhalin and launch in Ingushetia
• Brand Beeline named as the most valuable
  Russian brand by Interbrand Group
• Highest quality Moscow network according to an
  independent survey

8
Shareholder Structure(as of October 14, 2005)
Common Preferred Total voting
shares shares shares
Telenor 15,337,854 29.9
-- 15,337,854 26.6
Alfa 12,563,782 24.5 6,426,600
18,990,382 32.9 Free
Float 22,616,484 44.1 --
22,616,484 39.2 Treasury
Stock 259,702 0.5 -- 259,702
0.5 Other 503,200 1.0 --
503,200 0.9
Total 51,281,022 100 6,426,600
57,707,622 100
9
Russia and CIS GSM Network Rollout Spreads over
11 time zones
Moscow Population 17.0 mln.
Northwest Population 14.0 mln.
Urals Population 18.3 mln.
Central Population 21.0 mln.
Russia
Ukraine
Ukraine Population 47.6 mln. Launched Nov.2005
Far EastPopulation 11.4 mln.
Kazakhstan
South Population 22.9 mln.
VolgaPopulation 25.3 mln.
SiberiaPopulation 15.3 mln.
Kazakhstan Population 15.0 mln. Launched Sept.
2004
In commercial operation
Other licensed regions
10
Strong Growth in Russian Regions and Kazakhstan
31,177
26,601
22,630
19,106
13,900
11
Market Share
) This number was recalculated based on recently
published data by the competitor
Source VimpelCom, independent sources,
competitors data
12
Key Subscriber Statistics
(000) 30 Sept 05 30
Sept 04 YtY 30 Jun 05
QtQ
Russia 38,401 19,869
93 33,700
14 of prepaid 97
95 --
96 -- Moscow 8,876
6,646 34
8,501 4 of prepaid
89 87 --
89 -- Regions
29,525 13,223
123 25,199 17 of prepaid
99 98 --
99 --
Kazakhstan 1,652
676 144 1,402
18 of prepaid 98
96 --
98 -- Total
40,053 20,545
95 35,102 14
of prepaid 97
95 -- 97
-- of active subs. 84.4
n/a --
87.2 -- Churn (quarterly)
8.8 7.2
-- 6.7 --
) Including advance payment subscribers the
30 Sept 04 data were recalculated ) Active
subscribers are defined as those who in the last
three months made a chargeable transaction
13
Key Financial Figures
( mln) 3Q05
3Q04 YtY 2Q05
QtQ
Total Revenues 890.3
591.5 50.5
769.8 15.7 Russia
842.2 580.7 45.0
725.9 16.0 Kazakhstan
48.1 10.8
345.4 43.9
9.6 Gross Margin 82.9
83.1 -- 83.4
-- OIBDA
450.0 295.7 52.2
395.6 13.8 OIBDA
Margin 50.5 50.0
-- 51.4
-- OIBDA Russia
431.4 290.6
48. 5 378.6
13.9 OIBDA Kazakhstan
18.5 5.0 270.0
16.9 9.5
Net Income 194.9
101.0 93.0 158.8
22.7 Net Income Margin
21.9 17.1 --
20.6 -- Russia
196.6 98.7 99.2
156.5 25.6
Kazakhstan -1.7
2.3 -173.9 2.4
-170.8 SGA 283.9
192.5 47.5
242.8 16.9 of total
revenues 31.9
32.5 -- 31.5
-- incl. sales and marketing
expenses 93.1
69.6 33.8
87.1 6.9 DA
152.5 89.4 70.6
138.3 10.3
of Total Revenues 17.1
15.1 --
17.9 -- Capex (excl.
acquisitions) 261.7
346.5 -24.5 406.2
-35.6
Includes impairment of long-lived assets
14
Operational Indicators
3Q05 3Q04
YtY 2Q05 QtQ
ARPU, Blended () 7.8
10.6 -26.4 7.8
0.0 ARPU Russia 7.7
10.6 -27.4 7.6
1.3 ARPU Kazakhstan 10.5
16.3
-35.6 11.7
-10.3 MOU, Blended (min) 109.3
99.4 10.0
99.2 10.2 MOU Russia
111.6
99.8 11.8 100.9
10.6 MOU Kazakhstan 53.5
71.8
-25.5 58.1
-7.9 SAC, Blended () 11.4
14.2 -19.7
13.3 -14.3
SAC Russia 11.5 14.1
-18.4 13.4 -14.2 SAC
Kazakhstan 10.0
25.2 -60.3
10.6 -5.7
15
Strong Balance Sheet
(mln) 9/30/05 12/31/04
12/31/03
Cash and Cash Equivalents 675
306 158 Total
Assets 5,787 4,780
2,281 Total Debt 1,937
1,581 607 -
Short-term
360 190 215
- Long-term
1,577 1,391
392 Shareholders Equity
2,591 2,157 988
LTM OIBDA 1,436 1,027
613 - LTM Depreciation and
amortization 523 353
197 - LTM Operating income
913 674
41 6 LTM Interest
141 86
68 Debt/Equity
0.7 0.7
0.6 Debt/OIBDA
1.3 1.5
1.0 OIBDA/Interest 10.2
12.0 9.0 Debt/Assets
0.3
0.3 0.3
LTM OIBDA constitutes the sum of the lines LTM
Operating income and LTM Depreciation and
amortization LTM stands for last twelve months
to reporting date Includes Impairment of
long-lived assets In cases when OIBDA is
part of financial ratios it is deemed to be
calculated in accordance with the reconciliation
tables herein
Source VimpelCom
16
Net Operating Cash Flow vs CAPEX
83.1
64.8
70.3
Net operating cash flow as of Capex
17
URS Acquisition

• Extraordinary General Meeting of shareholders
  (EGM) held on September 14, 2005 approved the
  acquisition of URS, a Ukrainian GSM operator
• Last week VimpelCom consummated the acquisition
  of URS for the cash purchase price of 231.3
  million
• Telenor announced it is still opposed to the
  acquisition of URS
• VimpelCom and URS entered into agreements with
  Ericsson to upgrade the network, improving the
  business case

18
Development plan for Ukraine

• Complete post-acquisition integration
• Establish control over operations
• Secure fast roll-out of the network
• Prepare for launch of the Beeline brand in 6-7
  months
• Medium-term target around 5 million subscribers

19
Summary

• Strong financial performance with Y-o-Y revenue
  growth of 50.5, OIBDA growth of 52.2 and net
  income growth of 92.9
• Continued strong subscriber growth in the Russian
  regions and Kazakhstan
• With the acquisition in Ukraine VimpelComs
  license portfolio now covers 200 million people
• Development opportunities in Russia and the CIS
  make VimpelCom a company with a great growth
  potential

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
• Investor_Relations_at_vimpelcom.com

21
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)
(Three months
ended)
(Nine months ended) ( 000)
Sep. 30, 2005 Sep.
30, 2004 Jun. 30, 2005 Sep.30, 2005
Sep.30, 2004

Reconciliation of OIBDA to operating income
OIBDA
449,957 295,663 395,554
1,151,618 742,382 Impairment loss
--
-- --
--
(7,354) Depreciation
(118,000)
(74,455) (103,393)
(307,727) (199,158)
Amortization (34,518)
(14,962) (34,939)
(103,086) (33,618)
Operating Income 297,439
206,246 257,222
740,805 502,252

Reconciliation of OIBDA margin to operating
income
as percentage of total
operating revenues OIBDA margin
50.5 50.0
51.4 50.1
49.9 Less Impairment loss
--
-- --
--
(0.5) Less Depreciation as of total
operating revenues (13.3)
(12.6) (13.4)
(13.4) (13.4)
Less Amortization as of total operating
revenues (3.9)
(2.5) (4.5)
(4.5) (2.3) Operating
income as of total operating revenues
33.3 34.9
33.5 32.2 33.7
23
Reconciliation of OIBDA and OIBDA Margin
(Unaudited)

(Three months ended)
( 000)
Sep. 30, 2005
Sep. 30, 2004 Jun. 30,
2005 Russia Kazakhstan Russia
Kazakhstan Russia
Kazakhstan Total operating revenues
842,222 48,069
580,713 10,759 725,913
43,857 OIBDA
431,423 18,534
290,634 5,029 378,607
16,947 OIBDA margin
51.2 38.6
50.0 46.7 52.2
38.6

Reconciliation of OIBDA to operating income
OIBDA 431,423
18, 534 290,634 5,029
378,607 16,947 Less Depreciation
112,964 5,036
73,672 783 98,789
4,604 Less Amortization
26,045 8,473 12,128
2,834 26,280
8,659 Operating Income 292,414
5,025 204,834 1,412
253,538 3,684
24
Reconciliation of SAC (Unaudited)

(Three months ended) (
000)
Sep. 30, 2005
Sep. 30, 2004 Jun. 30,
2005

Reconciliation of SAC to selling, general and

administrative expenses
Selling, general and administrative expenses
283,856 192,513
242,762 Less General and admin.
expenses
190,745
122,913 155,613 Sales and
marketing expenses, including
93,111
69,600 87,149
advertising marketing expenses

30,886 16,780
36,103 dealers commission
expense
62,225
52,820
51,046 New gross subs, 000
8,159
4,894 6,572 SAC (US)

11.4 14.2
13.3
25
Reconciliation of ARPU (Unaudited)

(Three months ended) ( 000)
Sep. 30, 2005
Sep. 30, 2004
Jun. 30, 2005
Reconciliation of
ARPU to service revenue and connection fees
Service revenue and connection fees
US 881,841 US 581,296
US 760,723 Less Connection fees
325 191
132 Less
Revenue from rent of fiber-optic channels
520
408 269
Service revenue used to calculate ARPU
880,996
580,697
760,322 Average number of subscribers,
000 37,709
18,184
32,652 ARPU (US)
7.8
10.6
7.8
26
Reconciliation of SAC in Russia(Unaudited)

(Three months ended)
( 000)

Sep. 30, 2005
Sep. 30, 2004 Jun. 30,
2005

Reconciliation of SAC to selling, general and

administrative
expenses Selling, general and administrative
expenses 271,385
190,569 230,711 Less General and
admin. expenses
182,262
122,027 147,333
Sales and marketing expenses, including
89,123
68,542 83,378
advertising marketing expenses

29,453 16,533
33,290
dealers commission expense
59,670
52,009
50,088 New gross subs,
000 7,761
4,853
6,217 SAC (US)
11.5
14.1
13.4
27
Reconciliation of ARPU in Russia(Unaudited)

(Three months ended) (
000)
Sep. 30, 2005
Sep. 30, 2004
Jun. 30, 2005
Reconciliation of
ARPU to service revenue and connection fees
Service revenue and connection fees
US 833,888 US 570,537
US 716,955 Less
Connection fees 325
191 132
Less Revenue from rent of fiber-optic
channels
520 408
269 Service
revenue used to calculate ARPU
833,043
569,938
716,554 Average number of
subscribers, 000
36,182
17,964
31,395 ARPU (US)
7.7
10.6
7.6
28
Reconciliation of SAC in Kazakhstan(Unaudited)

(Three months ended) (
000)
Sep. 30, 2005
Sep. 30, 2004 Jun.
30, 2005

Reconciliation of SAC to selling, general and

administrative
expenses Selling, general and administrative
expenses 12,471
1,944 12,051 Less General and admin.
expenses
8,483 886
8,280 Sales and marketing
expenses, including
3,988 1,058
3,771 advertising
marketing expenses
1,433
247
2,813 dealers commission expense

2,555 811
958 New
gross subs, 000
398 42
355 SAC (US)

10.0 25.2
10.6
29
Reconciliation of APRU in Kazakhstan(Unaudited)


(Three months ended) ( 000)

Sep. 30, 2005 Sep. 30,
2004 Jun. 30, 2005
Reconciliation of
ARPU to service revenue and connection fees
Service revenue and connection fees
US 48,282 US 10,759
US 44,002 Less Connection fees
0 0
0 Less Revenue from
rent of fiber-optic channels
0 0
0 Service revenue
used to calculate ARPU
48,282
10,759 44,002
Average number of subscribers, 000
1,527
661
1,257 ARPU (US)
10.5
16.3 11.7