VimpelCom

1
VimpelCom

• Presentation of 2Q2004
• Financial and Operating Results

August 26, 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 and
international expansion. These statements also
relate to the consummation of the merger between
VimpelCom and each of VimpelCom-Region and KB
Impuls, and the acquisition of KaR-Tel, 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
in the case of the mergers. If any of the
respective approvals are not obtained or any
condition precedent is not met, the mergers or
acquisition, as applicable, 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 and
acquisition. 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 and Kazakhstan, general
economic developments in Russia and Kazakhstan,
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, 2003 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 2Q2004 Financial Highlights
72.8
61.2

74.9
Source VimpelCom
4
VimpelCom-R 2Q2004 Financial Highlights
138.1
429.1

179.8
Source VimpelCom
5
Operating Highlights

• 18.3 million subscribers in Russia as of August
  26, 2004
• VimpelComs presence established in the Far East
  as a result of acquisition of Dal Telecom
  International
• Operations encompass 70 regions, the largest
  number of any Russian cellular operator
• Strong financial results with OIBDA margin
  reaching new height of 49.8
• Multimedia Messaging Services (MMS) launched
  nationwide

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.
70
39
59
44
47
58
49
4
11
65
66
60
10
1
5
19
40
2
20
9
6
21
24
23
7
8
13
12
46
68
54
51
32
3
64
50
61
26
38
67
45
15
28
14
30
48
36
29
31
52
53
22
42
43
55
57
33
37
27
56
25
35
41
18
17
VolgaPopulation 25.2 mln.
63
62
16
69
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)
Acquisitions
Moscow license area
8
National GSM network rollout (regions)
Acquisitions
9
Strong Subscriber Growth
16.30
13.37
11.44
9.26
7.43
Source VimpelCom, independent sources
10
Strong Growth In The Regions
10,120
7,329
5,777
4,183
3,005
11
Network Rollout As Of June30, 2004
Moscow Regions
Total

2Q2004 1Q2004 2Q2004
1Q2004 2Q2004 1Q2004
? of BTSs 2 847 2 764 5
641 4 721 8 488 7 485 ? of
BSCs 117 116 137
121 254 237 ? of MSCs 12
12 57 50
69 62
Note BTS base transceiver station BSC base
station controller MSC mobile switching center
Source VimpelCom
12
Key Subscriber Statistics
(000) 30 Jun 04 30 Jun 03
YtY 31 Mar 04 QtQ
Moscow 6,183 4,429 40
6,042 2 Contract
844 763 11 827
2 Prepaid 5,339 3,666 46
5,215 2 Regions
10,121 3,005 237 7,329
38 Total 16,304 7,434
119 13,372 22 Contract
2,160 1,415 53
1,823 19 Prepaid 14,144 6,019
135 11,549 23 Churn
(quarterly) 9.4 10.5
- 8.6 -
13
Key Financial Figures
( mln) 2Q04 2Q03
YtY 1Q04
QtQ
Net Revenues 490.9 304.4 61.2
417.7 17.5 Moscow 289.1
216.7 33.4 256.3 12.8
Regions 201.8 87.7 130.1
161.4 25.0 Gross Margin 82.7
81.8 -- 81.9 --
OIBDA 244.7 139.9
74.9 202.0 21.1 OIBDA
Margin 49.8 46.0 --
48.4 -- Net Income
91.0 52.6 72.8 76.1
19.6 Net Income Margin 18.5
17.3 -- 18.2 --
Moscow 68.9 47.1 46.3
60.0 14.8 Regions 43.0
9.0 377.8
26.8 60.4 SGA 158.5
106.7 48.6 138.0
14.9 of Net Revenues 32.3
35.1 -- 33.0
-- DA 79.6 42.7 86.4
66.5 19.7 of Net
Revenues 16.2 14.0 --
15.9 -- Capex 272.4
174.2 56.4 156.8
73.7
Net operating revenues and net income excluding
inter-company transactions
14
Operational Indicators
2Q04 2Q03 YtY
1Q04 QtQ
ARPU, Blended () 10.8 14.3
-24.8 10.8
-0.4 ARPU Moscow 15.2
16.9 -10.2 14.1
7.3 Contract (Moscow) 54.0
51.0 6.0
50.5 6.9 Prepaid (Moscow) 9.0
9.5 -4.3
8.2 10.5 ARPU Regions 8.3
11.2 -25.5 8.6
-3.5 MOU, Blended (min) 96.3
100.2 -3.9 91.4
5.3 MOU Moscow 112.7 107.4
4.9 103.0 9.3 Contract
(Moscow) 364.1 297.3 22.5
333.7 9.1 Prepaid (Moscow)
72.9 65.9 10.7
65.3 11.7 MOU Regions 84.5
88.7 -4.8 80.9
4.4 SAC, Blended () 14.1
21.1 -33.0
16.8 -16.1 Moscow 23.4
29.7 -21.0 27.7
-15.3 Regions 11.0 12.3
-9.9 12.2 -9.6
15
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
16
Net Operating Cash Flow vs CAPEX
72.6
70.3
43.5
Net operating cash flow as of Capex
17
Corporate Activities

• Federal Agency on Communications granted
  VimpelCom approximately 5.6 million telephone
  numbers
• Merger between VimpelCom and VimpelCom-R will be
  accomplished after the transfer of licenses and
  frequencies
• A joint EGM of shareholders of VimpelCom and KB
  Impuls is expected in the beginning of October
  which should open the way for the merger of KB
  Impuls into VimpelCom

18
Summary

• Ongoing rapid subscriber growth resulted in more
  than 18 million subscribers
• Overall market share in Russia has increased to
  33
• The Company has taken a strong lead in the
  subscriber acquisitions in the regions of Russia
• Strong financial results with OIBDA margin
  reaching 49.8 in 2Q2004
• Placement of a 450 million bond issue enables
  the Company to finance external expansion
• Acquisition of Kar-Tel, a Kazakh cellular
  operator, gives VimpelCom an important footprint
  in the richest country in the CIS outside Russia

19
Reconciliation tables of non-U.S. GAAP measures
to their most directly comparable U.S. GAAP
financial measures
20
Reconciliation of OIBDA and OIBDA margin
(Three months ended)
(Six months ended) ( 000)
Jun. 30, 2004 Jun. 30, 2003
Jun. 30, 2004 Jun. 30, 2003
Reconciliation of VimpelCom OIBDA
to operating income OIBDA
244,694 139,929 446,719
247,865 Impairment loss
(7,354) -
(7,354)
- Depreciation (62,743)
(33,914) (120,080)
(65,592) Amortization
(9,513) (8,738)
(18,656) (16,110) Operating
Income 165,084 97,277
300,629 166,163
Reconciliation of VimpelCom OIBDA margin
to operating income
as percentage of net operating revenues OIBDA
margin 49.8
46.0 49.2 45.2
Less Impairment loss (1.5)
0
(0.8) 0 Less
Depreciation as of net operating revenues
(12.8) (11.1)
(13.2) (12.0)
Less Amortization as of net operating
revenues (1.9)
(2.9) (2.1)
(2.9) Operating income as of net operating
revenues 33.6 32.0
33.1 30.3
21
Reconciliation of OIBDA and OIBDA margin
(Three months ended)
(Six months ended) ( 000)
Jun. 30, 2004 Jun. 30, 2003
Jun. 30, 2004 Jun. 30, 2003
Reconciliation of VimpelCom-Region
OIBDA to operating income OIBDA
92,863 33,243 162,786
48,633 Depreciation
(19,616) (8,524)
(37,810) (15,284)
Amortization (6,606)
(5,637) (12,772)
(10,187) Operating Income
66,641 19,082 112,204
23,162
Reconciliation of VimpelCom-Region OIBDA margin
to operating income
as percentage of net operating revenues OIBDA
margin 42.5
36.2 41.4 31.0
Less Depreciation as of net operating
revenues (9.0)
(9.3) (9.6)
(9.7) Less Amortization as of net
operating revenues (3.0)
(6.1) (3.3)
(6.5) Operating income as of net
operating revenues 30.5 20.8
28.5 14.8
22
Reconciliation of ARPU
(Three months ended)
(Six months ended) ( 000)
Jun. 30, 2004 Jun. 30, 2003
Jun. 30, 2004 Jun. 30, 2003
Reconciliation of ARPU to service
revenue and connection fees Service revenue and
connection fees US 472,808 US
290,426 US 873,711 US 520,525 Less
Connection fees 151
379 336
716 Less Revenue from rent of
fiber-optic channels 304
278 853
649 Service revenue used to
calculate ARPU 472,353
289,769 872,522
519,160 Average number of subscribers,
000 14,625
6,754 13,471
6,207 ARPU per month (US) 10.8
14.3 10.8
13.9
23
Reconciliation of SAC
(Three months ended)
(Six months ended) ( 000)
Jun. 30, 2004 Jun. 30, 2003
Jun. 30, 2004 Jun. 30, 2003
Reconciliation of
SAC to selling, general and
administrative
expenses Selling, general and administrative
expenses 158,537 106,721
296,550 192,031 Less General and
admin. expenses
102,247 65,474
190,112 122,117 Sales and
marketing expenses, including
56,290 41,247
106,438 69,914 advertising
marketing expenses
16,468 13,518
29,713 22,963
dealers commission expenses
39,822
27,729 76,725
46,951 New gross subs, 000
3,987 1,959
6,967 3,333 SAC (US)
14.1 21.1
15.3 21.0