VimpelCom

1
VimpelCom

• Presentation of 4Q and Annual 2003
• Financial and Operating Results

March 25, 2004
2
Disclaimer
This presentation contains "forward-looking
statements", as the phrase is defined in Section
27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These
statements relate, in part, to the Companys
development plans, such as national expansion.
These statements also relate to the consummation
of the merger between VimpelCom and each of
VimpelCom-Region and KB Impuls each of which is
subject to regulatory and certain other
approvals, as well as certain other conditions
precedent, including the transfer of all
respective licenses and permissions to VimpelCom.
If any of the respective approvals are not
obtained or any condition precedent is not met,
the mergers will not be consummated. The
forward-looking statements are based on
management's best assessment of the Company's
strategic and financial position, future market
conditions and trends and its ability to
consummate the mergers. These discussions involve
risks and uncertainties. The actual outcome may
differ materially from these statements as a
result of unforeseen developments from regulatory
authorities, competition, governmental
regulations of the wireless telecommunications
industry, general political and social
uncertainties in Russia, general economic
developments in Russia, the Companys ability to
continue to grow its overall subscriber base,
continued volatility in the world economy and
other factors. There can be no assurance that
such risks and uncertainties will not have
material adverse effects on the Companys
development plans. Certain factors that could
cause actual results to differ materially from
those discussed in any forward-looking statements
include the risks described in the Company's
Annual Report on Form 20-F for the year ended
December 31, 2002 and other public filings made
by the Company with the United States Securities
and Exchange Commission, which risk factors are
incorporated herein by reference. VimpelCom
disclaims any obligation to update developments
of these risk factors or to announce publicly any
revision to any of the forward-looking statements
contained in this presentation, or to make
corrections to reflect future events or
developments.
3
VimpelCom 2003 Financial Highlights
80.6
73.8

90.3
Source VimpelCom
4
VimpelCom-R 4Q2003 Financial Highlights
20.6
102.3

25.1
Source VimpelCom
5
Operating Highlights

• 13.2 million subscribers in Russia as of March
  25, 2004
• National market share increased from 28 to 31
  during 2003
• Fastest growing operator in Central, Volga, South
  and Siberia super-regions
• 15 new regions launched in 2003 increasing
  VimpelComs footprint to 55 regions
• Migration of regional subscribers to the unified
  integrated billing and customer relations
  management system is completed
• Introduction of countrywide prepaid on-line
  roaming and GPRS based services

6
National GSM Network Rollout
Moscow Population 17.0 mln.
Northwest Population 14.0 mln.
Central Population 21.0 mln.
Urals Population 18.3 mln.
39
44
47
49
4
11
10
40
1
19
5
2
20
6
9
21
24
24
23
7
8
13
12
46
54
51
32
3
50
26
38
45
14
15
30
48
28
36
29
31
52
22
42
53
55
43
37
27
33
25
56
35
41
18
17
VolgaPopulation 25.2 mln.
16
34
South Population 22.9 mln.
SiberiaPopulation 15.3 mln.
Far EastPopulation 11.4 mln.
In commercial operation
Other licensed regions
7
National GSM network rollout (regions)
32. Cheboksary 33. Nalchik 34. Gorno-Altaysk 35.
Krasnoyarsk 36. Samara 37. Astrakhan 38.
Ulyanovsk 39. Kaliningrad 40. Norilsk 41.
Makhachkala 42. Stavropol 43. Cherkessk 44.
St. Petersburg 45. Tura 46. Tambov 47. Leningrad
Reg. 48. Ekaterinburg 49. Novgorod 50. Penza 51.
Yoshkar-Ola 52. Chelyabinsk 53. Tyumen 54.
Saransk 55. Elista 56. Vladikavkaz
Volga South Siberia Siberia Volga South Volga Nort
h W Siberia South South South North
W Siberia Central North W Ural North
W Volga Volga Ural Ural Volga South South
Oct 2002 Oct 2002 Oct 2002 Oct 2002 Nov 2002 Nov
2002 Dec 2002 Dec 2002 Dec 2002 Jan 2003 Jan
2003 Jan 2003 April 2003 Aug 2003 Oct 2003 Oct
2003 Dec 2003 Dec 2003 Dec 2003 Dec 2003 Dec
2003 Dec 2003 Dec 2003 Dec 2003 Mar 2004
1,314 900 203 2,966 3,240 1,007 1,382 955 135 2,58
4 2,730 440 4,669 18 1,180 1,671 4,490 695 1,453 7
28 3,606 3,266 889 292 710
Moscow license area
Acquisitions
8
Strong Subscriber Growth
11.44
9.26
7.43
6.19
5.15
21
Source VimpelCom, independent sources
9
Strong Growth In The Regions
5,777
4,183
3,005
2,242
1,440
10
Network Rollout As Of 12/31/03
Moscow Regions
Total

4Q2003 3Q2003 4Q2003
3Q2003 4Q2003 3Q2003
? of BTSs 2,681 2,556
4,330 3,525 7,011 6,081 ? of
BSCs 116 114 111
89 227 203 ? of MSCs
12 10 47 45
59 55
Note BTS base transceiver station BSC base
station controller MSC mobile switching center
Source VimpelCom
11
Key Subscriber Statistics
(000) 31 Dec 03 31 Dec 02
YtY 30 Sept 03 QtQ
Moscow 5,660 3,713 52
5,076 12 Contract
820 725 13 799
3 Prepaid 4,840 2,988 62
4,277 13 Regions 5,777
1,440 301 4,183 38 Total
11,437 5,153 122
9,259 24 Contract 1,491 1,082
38 1,470 1 Prepaid
9,946 4,071 144
7,789 28 Churn (quarterly) 9.7
8.7 - 9.6 -
12
Key Financial Figures
( mln) 4Q03 4Q02
YtY 3Q03
QtQ
Net Revenues 407.7 229.0
78.1 379.0
7.6 Moscow 263.0 192.5 36.6
259.7 1.3 Regions 144.7
39.8 263.7
119.3 21.3 Gross Margin 82.0
79.1 -- 81.8 -- OIBDA
186.9 84.6 120.9
178.5 4.7 OIBDA Margin 45.8
37.0 -- 47.1
-- Net Income 67.7 39.1
73.3 72.2 -6.2
Net Income Margin 16.6 17.1
-- 19.1 -- Moscow
48.6 46.3 5.1 61.6
-21.5 Regions 35.5
(8.7) 507.3 17.9
98.1 SGA 148.8 89.8
65.6 126.9 17.3 of Net
Revenues 36.5 39.2 --
33.5 -- Bad Debt -1.3
6.7 -119.7 4.9
-127.3 of Net Revenues -0.3
2.9 -- 1.3
-- Capex 251.6 179.9
39.8 165.3 52.2
Net operating revenues and net income excluding
inter-company transactions
13
Operational Indicators
4Q03 4Q02 YtY
3Q03 QtQ
ARPU, Blended () 12.5 16.0
-21.9 14.4
-13.2 ARPU Moscow 15.7
17.6 -10.8 17.5 -10.3 Contract
(Moscow) 52.7 48.9 7.8
53.6 -1.7 Prepaid (Moscow) 9.1
9.4 -3.2 10.4
-12.5 ARPU Regions 10.0 11.8
-15.3 11.5 -13.0 MOU, Blended
(min) 89.3 89.3 0.0
92.7 -3.7 MOU Moscow 84.7 89.5
-5.4 92.5 -8.4 Contract
(Moscow) 303.1 243.4 24.5
284.2 6.7 Prepaid (Moscow) 45.9
49.6 -7.5 54.7
-16.1 MOU Regions 94.4 88.5
6.7 93.0 1.5 SAC, Blended
() 18.1 20.9 -13.4
18.8 -3.7
Moscow 28.4 29.4 -3.4
27.0 5.2 Regions
12.1 13.5 -10.4
12.3 -1.6
14
Strong Balance Sheet
LTM OIBDA constitutes the sum of the lines LTM
Operating income and LTM Depreciation and
amortization LTM stands for last twelve months
to reporting date In cases when OIBDA is
part of financial ratios it is deemed to be
calculated in accordance with the reconciliation
tables herein
Source VimpelCom
15
Net Operating Cash Flow vs CAPEX
Source VimpelCom
16
Corporate Actions

• Merger between VimpelCom and VimpelCom-R
• Major remaining steps
• Approval at the Joint EGM of VimpelCom and
  VimpelCom-R shareholders on April 16
• Transfer of licenses and frequencies to
  VimpelCom
• Liquidation of VimpelCom-R
• Placement of VimpelCom shares to Alfa and Telenor
  in exchange for their ownership position in
  VimpelCom-R

17
Corporate Actions (cont)

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

18
Summary

• Ongoing rapid subscriber growth resulted in more
  than 13 million subscribers
• Strong financial results with net income growth
  over 80
• Leader in the key Moscow market overall market
  share in Russia has increased to 31
• Ongoing corporate actions will create full
  exposure for minority shareholders to regional
  growth and simplify corporate structure
• Proposed merger with KB Impuls will safeguard
  VimpelComs Moscow operations against regulatory
  risks and simplify corporate structure
• Operational focus going forward maintain growth,
  sustain profitability and combat churn

19
Reconciliation of OIBDA and OIBDA margin
(Three months ended)
(Years ended) ( 000)
Dec. 31, 2003 Dec. 31, 2002
Dec.31, 2003 Dec. 31, 2002
Reconciliation of VimpelCom OIBDA
to operating income OIBDA
186,893 84,615 613,230
322,209 Less Depreciation
(42,776) (26,679)
(151,262) (85,204) Less
Amortization (9,083)
(3,476) (34,064)
(12,213) Operating Income
135,034 54,460 427,904
224,792
Reconciliation of VimpelCom OIBDA margin
to operating income
as percentage of net operating revenues OIBDA
margin 45.8
37.0 45.9 41.9
Less Depreciation as of net operating
revenues (10.5)
(11.7) (11.3)
(11.0) Less Amortization as of net
operating revenues (2.2)
(1.5) (2.6)
(1.6) Operating income as of net
operating revenues 33.1 23.8
32.0 29.3
20
Reconciliation of OIBDA and OIBDA margin
(Three months ended)
(Years ended) ( 000)
Dec. 31, 2003 Dec. 31, 2002
Dec.31, 2003 Dec. 31, 2002
Reconciliation of VimpelCom-Region
OIBDA to operating income OIBDA
62,345 (26) 160,766
(3,064) Less Depreciation
(11,740) (3,871)
(39,917) (9,350)
Less Amortization (5,995)
(713) (21,970)
(1,530) Operating Income
44,610 4,610
98,879 13,944
Reconciliation of VimpelCom-Region OIBDA
margin to operating income
as percentage of net operating
revenues OIBDA margin
40.2 (0.1) 36.5
(3.7) Less Depreciation as
of net operating revenues (7.6)
(9.9) (9.1)
(11.2) Less Amortization as
of net operating revenues (3.9)
(1.8) (5.0)
(1.8) Operating income as of
net operating revenues 28.7
(11.8) 22.4 (16.7)