UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of May 2010

Commission File Number 1-14522

 

 

Open Joint Stock Company “Vimpel-Communications”

(Translation of registrant’s name into English)

 

 

10 Ulitsa 8-Marta, Building 14, Moscow, Russian Federation 127083

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  [X]    Form 40-F  [    ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):             .

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):             .

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  [    ]    No  [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-            .

 

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

		OPEN JOINT STOCK COMPANY “VIMPEL-COMMUNICATIONS”                   (Registrant)
Date: May 26, 2010
		By:		/s/ Alexander Y. Torbakhov
		Name:		Alexander Y. Torbakhov
		Title:		General Director

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Amsterdam and New York (May 26, 2010) - “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

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

 

Combined Financial and Operating Results on a Pro Forma Basis

 

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

 

 

2

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

 

*	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/ 1Q 09			4Q 09			1Q 10/ 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

 

 

3

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

 

OJSC VimpelCom: Russia - Financial and Operating Results

 

RUSSIA (RUR millions)		1Q 10			1Q 09			1Q 10/ 1Q 09			4Q 09			1Q 10/ 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* (RUR millions)		1Q 10			1Q 09			1Q 10/ 1Q 09			4Q 09			1Q 10/ 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* (RUR millions)		1Q 10			1Q 09			1Q 10/ 1Q 09			4Q 09			1Q 10/ 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/ 1Q 09			4Q 09			1Q 10/ 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.

 

 

4

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

 

**	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.

 

 

5

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

 

OJSC VimpelCom: CIS* - Financial and Operating Results

 

CIS OPERATIONS (US$ millions)		1Q 10			1Q 09			1Q 10/ 1Q 09			4Q 09			1Q 10/ 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.

 

 

6

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

 

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.

 

 

7

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

 

Kyivstar: Financial and Operating Results

 

KYIVSTAR (UAH millions)		1Q 10			1Q 09			1Q 10/ 1Q 09			4Q 09			1Q 10/ 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/ 1Q 09			4Q 09			1Q 10/ 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.

 

 

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

 

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’s Ltd 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

 

 

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

 

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.

 

For more information, please contact:
Alexey Subbotin		Mateo Millett
VimpelCom		FD
Tel: 7-495- 954-7888		Tel: 1-617 897-1533
Investor_Relations@vimpelcom.com		mateo.millett@fd.com

 

 

10

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

 

- 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.

 

 

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

 

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.

 

 

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

 

Attachment B: VimpelCom financial statements

VimpelCom Limited

Unaudited Combined Statement of Income (Pro-forma)

 

		Three months ended March 31, 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

 

 

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

 

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	)

 

 

14

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

 

OJSC VimpelCom Unaudited Condensed Consolidated Balance Sheets

 

		March 31, 2010				December 31, 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

 

 

15

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

 

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

 

 

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

 

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

 

 

17

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

 

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	%

 

 

18

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

 

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	%

 

 

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

 

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	%

 

 

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

 

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	%

 

 

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

 

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/ 1Q 09			4Q 09		1Q 10/ 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	%

 

 

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

 

Attachment E: OJSC VimpelCom Financial and Operational highlights – CIS

Revenues Development

 

KAZAKHSTAN (KZT mln)		1Q 10		1Q 09		1Q 10/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 4Q 09
Mobile net operating revenues		1,138		—		n/a			—		n/a
CIS REVENUES** (US$ mln)		1Q 10		1Q 09		1Q 10/ 1Q 09			4Q 09		1Q 10/ 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.

 

 

23

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

 

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

 

 

24

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

 

OIBDA Development

 

KAZAKHSTAN (KZT mln)		1Q 10			1Q 09			1Q 10/ 1Q 09			4Q 09			1Q 10/ 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/ 1Q 09			4Q 09			1Q 10/ 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/ 1Q 09			4Q 09			1Q 10/ 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/ 1Q 09			4Q 09			1Q 10/ 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/ 1Q 09			4Q 09			1Q 10/ 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/ 1Q 09			4Q 09			1Q 10/ 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/ 1Q 09			4Q 09			1Q 10/ 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/ 1Q 09			4Q 09			1Q 10/ 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.

 

 

25

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

 

Operating Highlights

 

KAZAKHSTAN		1Q 10		1Q 09		1Q 10/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 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/ 1Q 09			4Q 09		1Q 10/ 4Q 09
Mobile subscriptions (‘000)		1,774		—					—
MOU, min		193.9		—					—
ARPU mobile, US$		4.7		—					—
ARPU mobile, (KGS)		208		—					—

 

 

26

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

 

*	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/ 1Q 09			4Q 09			1Q 10/ 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/ 1Q 09			4Q 09			1Q 10/ 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 (US$ millions)		1Q 10			1Q 09			1Q 10/ 1Q 09			4Q 09			1Q 10/ 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.

 

 

27

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

 

Kyivstar — Ukraine

 

KYIVSTAR (US$ millions)		1Q 10			1Q 09			1Q 10/ 1Q 09			4Q 09			1Q 10/ 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	%

 

 

28

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

 

OJSC VimpelCom — CIS Revenues in US$

 

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

 

 

29

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

 

OJSC VimpelCom — CIS Adjusted OIBDA in US$

 

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

 

 

30

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

 

*	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/ 1Q 09		4Q 09		1Q 10/ 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/ 1 US$				4Q 08		1Q 09		2Q 09		3Q 09		4Q 09		1Q 10
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.

 

 

31

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OJSC VIP-Group

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		1,488			1,717			1,956			2,010			2,108			2,611			2,843			2,555			1,973			2,146			2,276			2,309			2,231
Gross margin		1,221			1,403			1,590			1,643			1,675			2,012			2,149			1,917			1,504			1,673			1,760			1,776			1,703
Gross margin, %		82.1	%		81.7	%		81.3	%		81.7	%		79.5	%		77.1	%		75.6	%		75.0	%		76.2	%		78.0	%		77.3	%		76.9	%		76.3	%
Adjusted OIBDA		766			897			1,015			918			1,126			1,223			1,388			1,124			949			1,088			1,148			1,088			1,052
Adjusted OIBDA, %		51.5	%		52.2	%		51.9	%		45.7	%		53.4	%		46.8	%		48.8	%		44.0	%		48.1	%		50.7	%		50.4	%		47.1	%		47.2	%
SG&A		439			494			557			716			528			774			749			787			538			573			599			680			632
including Sales & Marketing Expenses		136			167			186			219			187			215			242			285			156			168			184			218			191
including advertising		52			67			66			92			69			89			86			101			26			37			38			57			30
including General & Administrative Costs		303			327			371			497			341			559			507			502			382			405			415			462			441
SG&A, %		29.5	%		28.8	%		28.5	%		35.6	%		25.0	%		29.6	%		26.3	%		30.8	%		27.3	%		26.7	%		26.3	%		29.4	%		28.3	%
Net Income attributable to OJSC VimpelCom		277			359			458			368			601			470			269			-816			-297			701			434			283			392
Capital Expenditures		303.5			334.8			338.8			795.8			358.5			664.0			692.9			855.5			113.0			155.3			123.2			422.7			179.3
MOBILE		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		1,454			1,682			1,918			1,974			1,943			2,176			2,396			2,141			1,617			1,802			1,926			1,942			1,888
including Mobile Interconnect		209			241			270			303			299			322			349			320			236			259			271			289			279
Adjusted OIBDA		750			878			996			896			1,077			1,114			1,260			1,027			822			966			1,026			970			941
Adjusted OIBDA, %		51.6	%		52.2	%		51.9	%		45.4	%		55.4	%		51.2	%		52.6	%		48.0	%		50.8	%		53.6	%		53.3	%		49.9	%		49.8	%
Subscriptions (‘000)		45,784			47,702			50,686			51,740			52,293			53,707			57,758			61,029			62,724			63,676			65,358			64,596			66,821
FIXED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		34.2			35.2			37.6			36.3			164.9			435.7			449.3			419.7			362.1			350.1			359.0			376.8			352.3
including business segment		0.0			0.0			0.0			0.0			74.4			227.1			235.0			218.2			184.6			177.2			173.4			180.9			166.8
including wholesale segment		0.0			0.0			0.0			0.0			40.4			124.9			133.5			118.7			106.9			101.8			106.8			122.2			116.3
including residential segment		34.2			35.2			37.6			36.3			50.1			83.7			80.8			82.8			70.6			71.1			78.8			73.7			69.2
Adjusted OIBDA		16.2			18.5			19.5			22.8			49.9			109.8			129.8			100.2			131.2			128.8			124.3			119.2			112.2
Adjusted OIBDA, %		47.4	%		52.6	%		51.9	%		62.8	%		30.3	%		25.2	%		28.9	%		23.9	%		36.2	%		36.8	%		34.6	%		31.6	%		31.8	%
Broadband subscriptions (‘000)		0			0			0			0			542			617			785			1,221			1,560			1,739			1,930			2,257			2,513
Reconciliation of OIBDA total		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Adjusted OIBDA		766			897			1,015			918			1,126			1,223			1,388			1,124			949			1,088			1,148			1,088			1,052
Depreciation		(269	)		(285	)		(286	)		(331	)		(357	)		(385	)		(400	)		(379	)		(309	)		(326	)		(366	)		(393	)		(352	)
Amortization		(53	)		(54	)		(55	)		(56	)		(67	)		(101	)		(98	)		(94	)		(73	)		(70	)		(71	)		(87	)		(67	)
Impairment loss		0			0			0			0			0			0			0			(443	)		0			0			0			0			0
Operating income		444			558			674			531			702			737			890			208			567			692			711			608			633
Interest income		5			8			9			12			15			25			18			14			15			19			8			10			12
Net foreign exchange gain/(loss)		17			8			26			22			185			26			(341	)		(1,012	)		(746	)		323			25			(14	)		105
Interest expense		(46	)		(48	)		(51	)		(50	)		(79	)		(121	)		(142	)		(154	)		(137	)		(141	)		(157	)		(164	)		(142	)
Equity in net gain/(loss) of associates		0			0			0			0			0			0			2			(63	)		(35	)		5			5			(10	)		(4	)
Other (expense)/income, net		(11	)		(8	)		(9	)		31			(9	)		(3	)		(7	)		1			(6	)		1			(4	)		(24	)		(48	)
Income tax expense		(120	)		(144	)		(171	)		(159	)		(196	)		(179	)		(139	)		209			34			(191	)		(152	)		(125	)		(153	)
Net income/(loss)		289			374			478			387			618			485			281			(797	)		(308	)		708			436			281			403
Adjusted OIBDA margin as a percentage of net operating revenue		51.5	%		52.2	%		51.9	%		45.7	%		53.4	%		46.8	%		48.8	%		44.0	%		48.1	%		50.7	%		50.4	%		47.1	%		47.2	%
Depreciation		(18.1	%)		(16.6	%)		(14.6	%)		(16.5	%)		(16.9	%)		(14.7	%)		(14.1	%)		(14.9	%)		(15.7	%)		(15.2	%)		(16.1	%)		(17.0	%)		(15.8	%)
Amortization		(3.6	%)		(3.1	%)		(2.8	%)		(2.8	%)		(3.2	%)		(3.9	%)		(3.4	%)		(3.7	%)		(3.7	%)		(3.3	%)		(3.1	%)		(3.8	%)		(3.0	%)
Impairment loss		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		(17.3	%)		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income		29.8	%		32.5	%		34.5	%		26.4	%		33.3	%		28.2	%		31.3	%		8.1	%		28.7	%		32.2	%		31.2	%		26.3	%		28.4	%
Interest income		0.3	%		0.5	%		0.5	%		0.6	%		0.7	%		1.0	%		0.6	%		0.5	%		0.8	%		0.9	%		0.4	%		0.4	%		0.5	%
Net foreign exchange gain/(loss)		1.1	%		0.5	%		1.3	%		1.1	%		8.8	%		1.0	%		(12.0	%)		(39.6	%)		(37.8	%)		15.1	%		1.1	%		(0.6	%)		4.7	%
Interest expense		(3.1	%)		(2.8	%)		(2.6	%)		(2.5	%)		(3.7	%)		(4.6	%)		(5.0	%)		(6.0	%)		(6.9	%)		(6.6	%)		(6.9	%)		(7.1	%)		(6.4	%)
Equity in net gain/(loss) of associates		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%		(2.5	%)		(1.8	%)		0.2	%		0.2	%		(0.4	%)		(0.2	%)
Other (expense)/income, net		(0.6	%)		(0.5	%)		(0.6	%)		1.6	%		(0.5	%)		(0.1	%)		(0.2	%)		0.1	%		(0.3	%)		0.1	%		(0.1	%)		(1.0	%)		(2.0	%)
Income tax expense		(8.1	%)		(8.4	%)		(8.7	%)		(7.9	%)		(9.3	%)		(6.9	%)		(4.9	%)		8.2	%		1.7	%		(8.9	%)		(6.7	%)		(5.4	%)		(6.9	%)
Net income/(loss)		19.4	%		21.8	%		24.4	%		19.3	%		29.3	%		18.6	%		9.9	%		(31.2	%)		(15.6	%)		33.0	%		19.2	%		12.2	%		18.1	%

---

Russia

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		1,279			1,460			1,653			1,702			1,797			2,239			2,426			2,157			1,661			1,838			1,953			1,996			1,919
Gross margin		1,065			1,209			1,363			1,410			1,445			1,730			1,852			1,619			1,260			1,431			1,499			1,526			1,451
Gross margin, %		83.3	%		82.8	%		82.5	%		82.8	%		80.4	%		77.3	%		76.3	%		75.1	%		75.9	%		77.9	%		76.8	%		76.5	%		75.6	%
Adjusted OIBDA		676			780			871			773			993			1,060			1,215			948			803			942			988			941			907
Adjusted OIBDA, %		52.9	%		53.4	%		52.7	%		45.4	%		55.3	%		47.3	%		50.1	%		43.9	%		48.3	%		51.3	%		50.6	%		47.1	%		47.3	%
SG&A		375			419			477			633			433			657			627			667			441			479			500			578			529
including Sales & Marketing Expenses		114			141			159			186			158			181			203			246			132			147			158			191			166
including advertising		42			56			56			79			56			74			72			86			19			31			30			48			23
including General & Administrative Costs		261			278			318			447			276			476			424			421			309			332			342			387			363
SG&A, %		29.3	%		28.7	%		28.9	%		37.2	%		24.1	%		29.3	%		25.8	%		30.9	%		26.6	%		26.1	%		25.6	%		29.0	%		27.6	%
Net Income attributable to OJSC VimpelCom		280			356			423			364			616			449			259			-445			-244			677			442			313			386
Capital Expenditures		199.6			189.0			216.9			467.2			207.1			423.7			504.1			641.5			90.5			106.8			90.3			331.5			123.9
MOBILE		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		1,279			1,460			1,653			1,702			1,675			1,862			2,034			1,791			1,344			1,531			1,636			1,660			1,602
including Mobile Interconnect		171			203			224			253			252			269			285			257			190			212			220			238			228
Adjusted OIBDA		676			780			871			773			964			976			1,110			873			695			836			887			843			816
Adjusted OIBDA, %		52.9	%		53.4	%		52.7	%		45.4	%		57.6	%		52.4	%		54.6	%		48.7	%		51.7	%		54.6	%		54.2	%		50.8	%		50.9	%
Subscriptions (‘000)		38,631			40,140			41,802			42,221			42,079			42,485			45,093			47,677			49,351			49,971			51,028			50,886			51,254
ARPU, US$		10.9			12.3			13.4			13.5			13.2			14.7			15.2			12.5			9.1			10.1			10.6			10.8			10.3
MOU, min		160.9			192.6			208.9			204.1			198.7			220.3			228.5			227.8			203.0			211.8			213.6			217.7			203.9
Churn 3 months active base (quarterly), %		n/a			7.5	%		8.1	%		9.1	%		9.2	%		8.7	%		7.7	%		9.0	%		8.4	%		10.5	%		10.9	%		12.9	%		10.6	%
FIXED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		0			0			0			0			122			377			392			366			317			307			317			336			317
including business segment		0			0			0			0			68			207			213			200			171			164			160			162			150
including wholesale segment		0			0			0			0			40			124			133			118			105			99			112			121			114
including residential segment		0			0			0			0			14			47			46			48			41			44			45			53			53
Adjusted OIBDA		0			0			0			0			29			84			105			75			108			106			101			98			91
Adjusted OIBDA, %		0			0			0			0			23.8	%		22.3	%		26.8	%		20.5	%		34.1	%		34.5	%		31.9	%		29.2	%		28.7	%
Broadband subscriptions (‘000)		0			0			0			0			530			604			764			1,182			1,498			1,659			1,833			2,111			2,335
Broadband services ARPU, blended, US$		0			0			0			0			17.6			16.9			15.4			13.7			11.0			10.2			10.6			11.9			12.0
Reconciliation of OIBDA total		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Adjusted OIBDA		676			780			871			773			993			1,060			1,215			948			803			942			988			941			907
Depreciation		(232	)		(240	)		(250	)		(268	)		(288	)		(310	)		(331	)		(293	)		(242	)		(263	)		(287	)		(304	)		(280	)
Amortization		(29	)		(29	)		(29	)		(31	)		(35	)		(61	)		(54	)		(52	)		(39	)		(39	)		(40	)		(47	)		(41	)
Impairment loss		0			0			0			0			0			0			0			(315	)		0			0			0			0			0
Operating income		415			511			592			474			670			689			830			288			522			640			661			590			586
Interest income		9			13			15			18			21			33			28			27			27			32			22			25			27
Net foreign exchange gain/(loss)		7			4			26			17			183			5			(345	)		(752	)		(695	)		321			53			(14	)		106
Interest expense		(40	)		(42	)		(45	)		(41	)		(73	)		(118	)		(139	)		(150	)		(136	)		(141	)		(156	)		(162	)		(143	)
Equity in net gain/(loss) of associates		0			0			0			0			0			0			2			0			1			1			1			1			0
Other (expense)/income, net		(6	)		(6	)		(11	)		27			0			0			(3	)		0			2			1			1			(22	)		(47	)
Income tax expense		(104	)		(124	)		(154	)		(132	)		(182	)		(162	)		(113	)		142			34			(176	)		(141	)		(106	)		(144	)
Net income/(loss)		281			356			423			363			619			447			260			(445	)		(245	)		678			441			312			385
Adjusted OIBDA margin as a percentage of net operating revenue		52.9	%		53.4	%		52.7	%		45.4	%		55.3	%		47.3	%		50.1	%		43.9	%		48.3	%		51.3	%		50.6	%		47.1	%		47.3	%
Depreciation		(18.2	%)		(16.4	%)		(15.1	%)		(15.8	%)		(16.1	%)		(13.8	%)		(13.7	%)		(13.5	%)		(14.6	%)		(14.4	%)		(14.8	%)		(15.1	%)		(14.7	%)
Amortization		(2.3	%)		(2.0	%)		(1.8	%)		(1.8	%)		(1.9	%)		(2.7	%)		(2.2	%)		(2.4	%)		(2.3	%)		(2.1	%)		(2.0	%)		(2.4	%)		(2.1	%)
Impairment loss		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		(14.6	%)		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income		32.4	%		35.0	%		35.8	%		27.8	%		37.3	%		30.8	%		34.2	%		13.4	%		31.4	%		34.8	%		33.8	%		29.6	%		30.5	%
Interest income		0.7	%		0.9	%		0.9	%		1.1	%		1.2	%		1.5	%		1.2	%		1.3	%		1.6	%		1.7	%		1.1	%		1.3	%		1.4	%
Net foreign exchange gain/(loss)		0.5	%		0.3	%		1.6	%		1.0	%		10.2	%		0.2	%		(14.2	%)		(34.9	%)		(41.8	%)		17.5	%		2.7	%		(0.7	%)		5.5	%
Interest expense		(3.1	%)		(2.9	%)		(2.7	%)		(2.4	%)		(4.1	%)		(5.3	%)		(5.7	%)		(7.0	%)		(8.2	%)		(7.7	%)		(8.0	%)		(8.1	%)		(7.5	%)
Equity in net gain/(loss) of associates		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.1	%		0.0	%		0.1	%		0.1	%		0.1	%		0.1	%		0.0	%
Other (expense)/income, net		(0.4	%)		(0.4	%)		(0.7	%)		1.6	%		(0.1	%)		0.0	%		(0.2	%)		0.0	%		0.1	%		0.1	%		0.1	%		(1.3	%)		(2.3	%)
Income tax expense		(8.1	%)		(8.5	%)		(9.3	%)		(7.8	%)		(10.1	%)		(7.2	%)		(4.7	%)		6.6	%		2.0	%		(9.6	%)		(7.2	%)		(5.3	%)		(7.5	%)
Net income/(loss)		22.0	%		24.4	%		25.6	%		21.3	%		34.4	%		20.0	%		10.7	%		(20.6	%)		(14.8	%)		36.9	%		22.6	%		15.6	%		20.1	%

---

CIS

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		210.9			260.1			305.7			314.4			316.9			388.1			439.8			419.6			332.6			331.1			353.6			341.6			339.8
Gross margin		156.8			194.7			226.2			232.9			230.8			282.0			298.0			298.1			244.8			243.5			262.1			249.4			250.7
Gross margin, %		74.3	%		74.9	%		74.0	%		74.1	%		72.8	%		72.7	%		67.8	%		71.0	%		73.6	%		73.5	%		74.1	%		73.0	%		73.8	%
Adjusted OIBDA		90.0			116.9			144.0			145.2			134.3			164.4			174.7			179.3			149.7			152.4			169.8			154.7			152.4
Adjusted OIBDA, %		42.7	%		44.9	%		47.1	%		46.2	%		42.3	%		42.4	%		39.7	%		42.7	%		45.0	%		46.0	%		48.0	%		45.3	%		44.8	%
SG&A		65.1			76.4			79.4			83.9			94.3			115.4			121.4			116.9			92.5			88.3			91.0			94.1			94.7
including Sales & Marketing Expenses		22.3			26.0			27.3			33.1			29.0			33.9			39.1			39.5			22.7			19.6			24.6			24.9			21.5
including advertising		9.2			10.7			10.5			13.0			13.4			15.4			14.5			15.3			6.6			5.2			6.9			8.3			5.9
including General & Administrative Costs		42.8			50.4			52.1			50.8			65.3			81.5			82.3			77.4			69.8			68.7			66.4			69.2			73.2
SG&A, %		30.9	%		29.4	%		26.0	%		26.7	%		29.8	%		29.7	%		27.6	%		27.9	%		27.8	%		26.7	%		25.7	%		27.5	%		27.9	%
Net Income attributable to OJSC VimpelCom		-3.1			3.7			35.6			4.6			-14.3			22.3			13.3			-278.5			-11.0			26.1			2.7			-7.6			22.0
Capital Expenditures		103.9			145.8			121.9			328.6			146.0			238.9			186.8			203.5			9.5			24.6			24.5			68.1			38.3
MOBILE		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		176.7			224.9			268.1			278.1			270.7			318.3			369.1			352.7			274.3			273.8			292.3			282.8			283.8
including Mobile Interconnect		28.4			37.7			45.3			50.4			46.9			52.6			64.2			62.4			45.6			46.9			51.6			50.7			51.8
Adjusted OIBDA		73.8			98.4			124.5			122.4			113.6			138.2			149.4			153.9			126.6			129.8			146.3			133.1			131.1
Adjusted OIBDA, %		41.8	%		43.8	%		46.4	%		44.0	%		42.0	%		43.4	%		40.5	%		43.6	%		46.2	%		47.4	%		50.1	%		47.1	%		46.2	%
Subscriptions (‘000)		7,153			7,562			8,884			9,519			10,214			11,222			12,665			13,352			13,373			13,626			14,235			13,342			15,076
FIXED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		34.2			35.2			37.6			36.3			46.2			69.8			70.7			66.9			58.3			57.3			61.3			58.8			56.0
including business segment		0			0			0			0			6.5			20.1			22.1			18.0			14.0			13.4			13.4			19.0			16.9
including wholesale segment		0			0			0			0			3			9.9			9.6			10.3			10.8			12.1			14.4			19.3			23.3
including residential segment		34.2			35.2			37.6			36.3			36.7			39.8			39.1			38.6			33.5			31.8			33.5			20.5			15.8
Adjusted OIBDA		16.2			18.5			19.5			22.8			20.7			26.2			25.3			25.4			23.1			22.6			23.5			21.6			21.3
Adjusted OIBDA, %		47.4	%		52.6	%		51.9	%		62.8	%		44.8	%		37.5	%		35.8	%		38.0	%		39.6	%		39.4	%		38.3	%		36.7	%		38.0	%
Broadband subscriptions (‘000)		0			0			0			0			12			13			22			39			62			80			97			146			178
Reconciliation of OIBDA total		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Adjusted OIBDA		90.0			116.9			144.0			145.2			134.3			164.4			174.7			179.3			149.7			152.4			169.8			154.7			152.4
Depreciation		(36.5	)		(44.9	)		(35.7	)		(62.8	)		(69.7	)		(75.3	)		(67.6	)		(85.2	)		(66.4	)		(61.5	)		(73.5	)		(86.5	)		(70.6	)
Amortization		(24.8	)		(25.4	)		(26.2	)		(25.5	)		(32.3	)		(39.3	)		(44.7	)		(42.7	)		(33.4	)		(31.0	)		(30.7	)		(39.7	)		(24.9	)
Impairment loss		—			—			—			—			—			—			—			(90.1	)		—			—			—			—			—
Operating income		28.7			46.6			82.1			56.9			32.3			49.8			62.4			(38.7	)		49.9			59.9			65.6			28.5			56.9
Interest income		0.1			0.2			0.8			—			0.5			0.8			0.7			1.1			1.4			1.8			2.3			2.7			3.3
Net foreign exchange gain/(loss)		9.8			4.5			0.2			4.7			1.6			21.4			4.7			(258.7	)		(49.7	)		1.2			(28.4	)		—			(1.3	)
Interest expense		(9.5	)		(10.9	)		(12.9	)		(15.2	)		(13.6	)		(12.3	)		(13.4	)		(17.1	)		(14.1	)		(13.8	)		(15.3	)		(17.2	)		(14.8	)
Equity in net gain/(loss) of associates		—			—			—			(0.2	)		—			—			—			0.1			—			(0.5	)		—			0.9			(0.2	)
Other (expense)/income, net		(5.4	)		(2.5	)		2.0			3.5			(8.0	)		(3.2	)		(3.7	)		(2.9	)		(5.8	)		(0.5	)		(5.1	)		(2.7	)		(1.0	)
Income tax expense		(15.5	)		(19.2	)		(17.2	)		(27.2	)		(12.7	)		(16.8	)		(25.2	)		61.1			(0.4	)		(15.3	)		(11.4	)		(19.2	)		(8.6	)
Net income/(loss)		8.2			18.7			55.0			22.5			0.1			39.7			25.5			-255.1			-18.7			32.8			7.7			-7.0			34.3
Adjusted OIBDA margin as a percentage of net operating revenue		42.7	%		44.9	%		47.1	%		46.2	%		42.3	%		42.4	%		39.7	%		42.7	%		45.0	%		46.0	%		48.0	%		45.3	%		44.8	%
Depreciation		(17.3	%)		(17.2	%)		(11.6	%)		(20.0	%)		(21.9	%)		(19.5	%)		(15.3	%)		(20.2	%)		(20.0	%)		(18.5	%)		(20.7	%)		(25.4	%)		(20.8	%)
Amortization		(11.8	%)		(9.8	%)		(8.6	%)		(8.1	%)		(10.2	%)		(10.1	%)		(10.2	%)		(10.2	%)		(10.0	%)		(9.4	%)		(8.7	%)		(11.6	%)		(7.3	%)
Impairment loss		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		(21.5	%)		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income		13.6	%		17.9	%		26.9	%		18.1	%		10.2	%		12.8	%		14.2	%		-9.2	%		15.0	%		18.1	%		18.6	%		8.3	%		16.7	%
Interest income		0.0	%		0.1	%		0.3	%		0.0	%		0.2	%		0.2	%		0.2	%		0.3	%		0.4	%		0.5	%		0.7	%		0.8	%		1.0	%
Net foreign exchange gain/(loss)		4.6	%		1.7	%		0.1	%		1.5	%		0.5	%		5.5	%		1.1	%		-61.7	%		-14.9	%		0.4	%		-8.0	%		0.0	%		-0.4	%
Interest expense		-4.5	%		-4.2	%		-4.2	%		-4.8	%		-4.3	%		-3.2	%		-3.0	%		-4.1	%		-4.2	%		-4.2	%		-4.3	%		-5.0	%		-4.4	%
Equity in net gain/(loss) of associates		0.0	%		0.0	%		0.0	%		-0.1	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		-0.2	%		0.0	%		0.3	%		-0.1	%
Other (expense)/income, net		-2.5	%		-0.9	%		0.5	%		1.1	%		-2.6	%		-0.8	%		-1.0	%		-0.7	%		-1.8	%		-0.1	%		-1.6	%		-0.8	%		-0.2	%
Income tax expense		-7.3	%		-7.4	%		-5.6	%		-8.7	%		-4.0	%		-4.3	%		-5.7	%		14.6	%		-0.1	%		-4.6	%		-3.2	%		-5.6	%		-2.5	%
Net income/(loss)		3.9	%		7.2	%		18.0	%		7.2	%		0.0	%		10.2	%		5.8	%		-60.8	%		-5.6	%		9.9	%		2.2	%		-2.0	%		10.1	%

---

Kazakhstan

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		119.4			149.3			167.1			174.6			162.8			185.3			198.6			196.9			153.9			157.1			171.9			170.4			159.5
Gross margin		88.2			112.0			122.1			128.4			118.9			140.8			152.6			148.8			116.7			120.3			136.0			133.0			123.2
Gross margin, %		73.9	%		75.0	%		73.1	%		73.5	%		73.0	%		76.0	%		76.8	%		75.6	%		75.8	%		76.6	%		79.1	%		78.1	%		77.2	%
Adjusted OIBDA		62.0			80.3			88.1			92.2			82.0			96.4			106.1			97.7			78.7			85.2			101.7			93.9			88.5
Adjusted OIBDA, %		51.9	%		53.8	%		52.7	%		52.8	%		50.4	%		52.0	%		53.4	%		49.6	%		51.1	%		54.2	%		59.2	%		55.1	%		55.5	%
SG&A		25.4			31.7			32.7			33.8			34.8			43.5			45.9			50.4			37.4			34.5			34.4			39.3			35.0
including Sales & Marketing Expenses		11.0			14.2			13.8			17.1			12.9			15.1			17.6			22.7			11.9			8.8			10.4			12.7			9.4
including advertising		3.7			4.5			5.0			5.5			4.7			5.8			5.5			8.8			3.0			1.2			1.9			3.8			2.4
including General & Administrative Costs		14.4			17.5			18.9			16.7			21.9			28.4			28.3			27.7			25.5			25.7			24.0			26.6			25.6
SG&A, %		21.3	%		21.2	%		19.6	%		19.4	%		21.4	%		23.5	%		23.1	%		25.6	%		24.3	%		22.0	%		20.0	%		23.1	%		21.9	%
Net Income attributable to OJSC VimpelCom		13.1			16.4			21.7			19.8			14.1			19.5			29.9			76.4			-12.5			30.0			40.8			25.8			36.0
Capital Expenditures		31.2			45.8			40.5			96.4			42.6			55.4			77.1			79.7			3.3			11.0			10.0			19.5			5.9
MOBILE		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		119.4			149.3			167.1			174.6			162.0			182.5			195.9			193.7			151.6			154.8			169.3			167.7			156.3
including Mobile Interconnect		20.5			26.5			28.5			33.0			28.4			30.9			32.2			31.4			23.4			23.4			25.4			25.0			23.4
Adjusted OIBDA		62.0			80.3			88.1			92.2			82.0			96.3			106.2			97.7			78.7			85.6			101.7			93.9			88.1
Adjusted OIBDA, %		51.9	%		53.8	%		52.7	%		52.8	%		50.6	%		52.8	%		54.2	%		50.4	%		51.9	%		55.3	%		60.1	%		56.0	%		56.4	%
Subscriptions (‘000)		3,501			3,858			4,343			4,604			4,777			5,098			5,614			6,270			6,377			6,635			6,835			6,135			6,062
ARPU, US$		12.2			13.6			13.6			13.0			11.6			12.3			12.1			10.8			7.8			7.9			8.2			8.5			8.4
MOU, min		72.3			88.8			112.7			98.9			99.1			109.7			108.1			100.5			81.1			90.7			98.1			102.3			102.2
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			9.8	%		9.5	%		7.6	%		7.4	%		7.3	%		9.2	%		5.7	%		9.3	%		22.2	%		11.4	%
FIXED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		0			0			0			0			0.8			2.8			2.7			3.2			2.3			2.3			2.6			2.7			3.2
including business segment		0			0			0			0			0.3			1.0			0.8			1.0			0.7			0.8			0.5			0.5			0.6
including wholesale segment		0			0			0			0			0.5			1.8			1.9			2.2			1.5			1.4			2.0			2.1			2.4
including residential segment		0			0			0			0			0.001			0.003			0.003			0.05			0.1			0.1			0.1			0.1			0.2
Adjusted OIBDA		0			0			0			0			0.0			0.1			-0.1			0.0			0.0			-0.4			0.0			0.0			0.4
Adjusted OIBDA, %		0			0			0			0			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			12.5	%
Broadband subscriptions (‘000)																							0.2			0.2			0.3			0.3			1.3			2.7
Reconciliation of OIBDA total		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Adjusted OIBDA		62.0			80.3			88.1			92.2			82.0			96.4			106.1			97.7			78.7			85.2			101.7			93.9			88.5
Depreciation		(15.9	)		(17.5	)		(14.9	)		(20.2	)		(21.6	)		(25.7	)		(24.0	)		(28.7	)		(23.9	)		(21.6	)		(24.9	)		(27.4	)		(18.5	)
Amortization		(9.2	)		(9.5	)		(9.1	)		(9.7	)		(9.7	)		(11.1	)		(15.9	)		(16.0	)		(14.1	)		(12.8	)		(12.7	)		(13.0	)		(13.3	)
Impairment loss		—			—			—			—			—			—			—			—			—			—			—			—			—
Operating income		36.9			53.3			64.1			62.3			50.7			59.6			66.2			53.0			40.7			50.8			64.1			53.5			56.7
Interest income		—			—			0.6			(0.4	)		0.2			0.3			0.2			0.3			0.3			0.4			1.1			0.6			0.3
Net foreign exchange gain/(loss)		10.5			2.4			1.6			1.0			(1.9	)		(0.1	)		2.5			(1.9	)		(51.7	)		1.9			(0.8	)		0.3			0.4
Interest expense		(4.3	)		(4.1	)		(4.9	)		(5.1	)		(3.4	)		(3.2	)		(3.0	)		(3.1	)		(1.5	)		(1.6	)		(0.9	)		(2.9	)		(0.1	)
Equity in net gain/(loss) of associates		—			—			—			(0.2	)		—			—			—			0.1			—			(0.5	)		—			0.9			(0.2	)
Other (expense)/income, net		(4.1	)		(1.4	)		2.0			5.3			(4.0	)		(0.5	)		(4.4	)		0.3			(5.2	)		(0.3	)		(0.8	)		(1.5	)		(0.4	)
Income tax expense		(12.8	)		(17.3	)		(19.9	)		(23.8	)		(13.5	)		(18.7	)		(20.6	)		52.8			0.6			(10.8	)		(13.1	)		(18.6	)		(8.7	)
Net income/(loss)		26.2			32.9			43.5			39.1			28.1			37.4			40.9			101.5			(16.8	)		39.9			49.6			32.3			48.0
Adjusted OIBDA margin as a percentage of net operating revenue		51.9	%		53.8	%		52.7	%		52.8	%		50.4	%		52.0	%		53.4	%		49.6	%		51.1	%		54.2	%		59.2	%		55.1	%		55.5	%
Depreciation		(13.3	%)		(11.7	%)		(8.9	%)		(11.5	%)		(13.3	%)		(13.8	%)		(12.1	%)		(14.6	%)		(15.5	%)		(13.8	%)		(14.5	%)		(16.1	%)		(11.7	%)
Amortization		(7.7	%)		(6.4	%)		(5.4	%)		(5.6	%)		(6.0	%)		(6.0	%)		(8.0	%)		(8.1	%)		(9.2	%)		(8.1	%)		(7.4	%)		(7.6	%)		(8.3	%)
Impairment loss		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income		30.9	%		35.7	%		38.4	%		35.7	%		31.1	%		32.2	%		33.3	%		26.9	%		26.4	%		32.3	%		37.3	%		31.4	%		35.5	%
Interest income		0.0	%		0.0	%		0.4	%		(0.2	%)		0.1	%		0.2	%		0.1	%		0.2	%		0.2	%		0.3	%		0.6	%		0.4	%		0.2	%
Net foreign exchange gain/(loss)		8.8	%		1.6	%		1.0	%		0.6	%		(1.2	%)		(0.1	%)		1.3	%		(1.0	%)		(33.6	%)		1.2	%		(0.5	%)		0.2	%		0.3	%
Interest expense		(3.6	%)		(2.7	%)		(2.9	%)		(2.9	%)		(2.1	%)		(1.7	%)		(1.5	%)		(1.6	%)		(1.0	%)		(1.0	%)		(0.5	%)		(1.7	%)		(0.1	%)
Equity in net gain/(loss) of associates		0.0	%		0.0	%		0.0	%		(0.1	%)		0.0	%		0.0	%		0.0	%		0.1	%		0.0	%		(0.3	%)		0.0	%		0.5	%		(0.1	%)
Other (expense)/income, net		(3.5	%)		(1.0	%)		1.0	%		2.9	%		(2.3	%)		(0.3	%)		(2.2	%)		0.1	%		(3.3	%)		(0.2	%)		(0.4	%)		(0.9	%)		(0.2	%)
Income tax expense		(10.7	%)		(11.6	%)		(11.9	%)		(13.6	%)		(8.3	%)		(10.1	%)		(10.4	%)		26.8	%		0.4	%		(6.9	%)		(7.6	%)		(10.9	%)		(5.5	%)
Net income/(loss)		21.9	%		22.0	%		26.0	%		22.4	%		17.3	%		20.2	%		20.6	%		51.5	%		(10.9	%)		25.4	%		28.9	%		19.0	%		30.1	%

---

Ukraine (URS+GT)

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		16.3			23.8			37.0			34.5			44.8			71.2			94.2			70.5			47.4			51.1			56.6			48.1			44.9
Gross margin		9.5			13.5			23.3			20.9			26.7			39.5			31.6			33.9			26.6			30.1			33.4			26.5			28.5
Gross margin, %		58.3	%		56.7	%		63.0	%		60.6	%		59.6	%		55.5	%		33.5	%		48.1	%		56.1	%		58.9	%		59.0	%		55.1	%		63.5	%
Adjusted OIBDA		-6.5			-3.1			6.5			3.6			3.2			9.4			-1.6			11.6			6.3			10.0			12.1			7.6			10.1
Adjusted OIBDA, %		n/a			n/a			17.6	%		10.4	%		7.1	%		13.2	%		n/a			16.5	%		13.3	%		19.6	%		21.4	%		15.8	%		22.5	%
SG&A		16.0			16.5			16.5			17.5			23.4			30.0			32.7			21.6			19.5			19.5			20.7			18.7			18.3
including Sales & Marketing Expenses		5.8			5.5			5.3			5.2			6.7			7.9			8.7			4.7			3.5			3.8			5.1			3.5			3.3
including advertising		3.9			3.7			2.7			3.5			4.7			5.1			4.5			1.9			1.7			1.6			2.3			1.6			0.9
including General & Administrative Costs		10.2			11.0			11.2			12.3			16.7			22.1			24.0			16.9			16.0			15.7			15.6			15.2			15.0
SG&A, %		98.2	%		69.3	%		44.6	%		50.7	%		52.2	%		42.1	%		34.7	%		30.6	%		41.1	%		38.2	%		36.6	%		38.9	%		40.8	%
Net Income attributable to OJSC VimpelCom		-18.4			-17.2			-6.4			-17.6			-19.7			-5.8			-36.7			-323.1			-14.4			-10.5			-38.2			-26.9			-7.8
Capital Expenditures		29.3			46.0			26.0			55.2			26.6			54.1			46.9			57.8			2.9			2.9			3.0			11.0			6.0
MOBILE		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		16.3			23.8			37.0			34.5			36.3			44.9			66.3			46.3			25.7			28.6			32.3			23.8			22.9
including Mobile Interconnect		5.4			7.6			10.9			10.9			11.5			12.6			18.0			13.6			8.2			8.0			8.0			6.6			5.5
Adjusted OIBDA		-6.5			-3.1			6.5			3.6			1.5			3.9			-6.3			6.6			1.2			3.8			6.4			2.2			3.5
Adjusted OIBDA, %		n/a			n/a			17.6	%		10.4	%		4.1	%		8.7	%		n/a			14.3	%		4.7	%		13.3	%		19.8	%		9.2	%		15.3	%
Subscriptions (‘000)		1,953			1,822			2,212			1,941			1,971			2,111			2,403			2,052			1,894			1,934			2,199			2,005			1,951
ARPU, US$		3.0			4.2			5.8			5.6			6.1			7.5			9.7			7.0			4.5			5.2			5.4			3.9			3.8
MOU, min		138.0			159.9			168.2			183.2			210.2			231.0			261.5			230.0			213.3			217.8			203.7			201.3			197.2
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			35.8	%		20.1	%		16.9	%		15.9	%		32.2	%		21.9	%		15.1	%		14.4	%		29.4	%		18.5	%
FIXED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		0			0			0			0			8.5			26.3			27.9			24.2			21.7			22.5			24.3			24.3			22.0
including business segment		0			0			0			0			5.5			16.9			18.9			14.8			11.1			10.2			10.4			10.3			9.4
including wholesale segment		0			0			0			0			2.5			8.1			7.6			8.0			9.3			10.7			12.3			12.4			10.0
including residential segment		0			0			0			0			0.4			1.3			1.4			1.4			1.3			1.6			1.6			1.6			2.6
Adjusted OIBDA		0			0			0			0			1.7			5.5			4.7			5.0			5.1			6.2			5.7			5.4			6.6
Adjusted OIBDA, %		0			0			0			0			20.0	%		20.9	%		16.8	%		20.7	%		23.5	%		27.6	%		23.5	%		22.2	%		30.0	%
Broadband subscriptions (‘000)		0			0			0			0			12.1			13.1			16.1			24.1			39.6			52.7			70.1			109.3			133.8
Reconciliation of OIBDA total		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Adjusted OIBDA		(6.5	)		(3.1	)		6.5			3.6			3.2			9.4			(1.6	)		11.6			6.3			10.0			12.1			7.6			10.1
Depreciation		(3.2	)		(4.3	)		(4.5	)		(13.0	)		(11.2	)		(15.0	)		(18.0	)		(14.9	)		(10.7	)		(11.9	)		(14.1	)		(13.7	)		(10.6	)
Amortization		(5.2	)		(5.2	)		(5.2	)		(3.1	)		(7.2	)		(12.4	)		(12.8	)		(10.3	)		(6.8	)		(6.8	)		(6.7	)		(16.1	)		(4.3	)
Impairment loss		—			—			—			—			—			—			—			(90.1	)		—			—			—			—			—
Operating income		(14.9	)		(12.6	)		(3.2	)		(12.5	)		(15.2	)		(18.0	)		(32.4	)		(103.7	)		(11.2	)		(8.7	)		(8.7	)		(22.2	)		(4.8	)
Interest income		—			—			—			—			—			—			—			—			0.1			—			0.1			0.1			0.1
Net foreign exchange gain/(loss)		(0.2	)		—			—			—			—			17.2			(1.3	)		(230.8	)		—			4.3			(25.9	)		1.6			3.8
Interest expense		(3.4	)		(4.7	)		(4.9	)		(5.2	)		(5.0	)		(4.8	)		(5.4	)		(7.0	)		(4.7	)		(5.2	)		(6.3	)		(6.2	)		(6.7	)
Equity in net gain/(loss) of associates		—			—			—			—			—			—			—			—			—			—			—			—			—
Other (expense)/income, net		—			(0.2	)		(0.2	)		(0.7	)		(1.0	)		(0.7	)		(0.3	)		2.1			—			(1.0	)		(1.7	)		(0.6	)		—
Income tax expense		0.1			0.3			1.9			0.8			1.6			0.9			4.0			14.4			1.2			(0.6	)		4.1			(2.3	)		(0.2	)
Net income/(loss)		(18.4	)		(17.2	)		(6.4	)		(17.6	)		(19.6	)		(5.4	)		(35.4	)		(325.0	)		(14.6	)		(11.2	)		(38.4	)		(29.6	)		(7.8	)
Adjusted OIBDA margin as a percentage of net operating revenue		n/a			n/a			17.6	%		10.4	%		7.1	%		13.2	%		n/a			16.5	%		13.3	%		19.6	%		21.4	%		15.8	%		22.5	%
Depreciation		n/a			n/a			(12.1	%)		(37.6	%)		(24.9	%)		(21.1	%)		n/a			(21.2	%)		(22.6	%)		(23.3	%)		(25.0	%)		(28.5	%)		(23.6	%)
Amortization		n/a			n/a			(14.1	%)		(9.0	%)		(16.1	%)		(17.4	%)		n/a			(14.6	%)		(14.3	%)		(13.3	%)		(11.8	%)		(33.5	%)		(9.6	%)
Impairment loss		n/a			n/a			0.0	%		0.0	%		0.0	%		0.0	%		n/a			(127.8	%)		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income		n/a			n/a			(8.6	%)		(36.2	%)		(33.9	%)		(25.3	%)		n/a			(147.1	%)		(23.6	%)		(17.0	%)		(15.4	%)		(46.2	%)		(10.7	%)
Interest income		n/a			n/a			0.0	%		0.0	%		0.0	%		0.0	%		n/a			0.0	%		0.2	%		0.0	%		0.2	%		0.2	%		0.2	%
Net foreign exchange gain/(loss)		n/a			n/a			0.0	%		0.0	%		0.0	%		24.2	%		n/a			(327.4	%)		0.0	%		8.4	%		(45.8	%)		3.3	%		8.5	%
Interest expense		n/a			n/a			(13.2	%)		(15.1	%)		(11.2	%)		(6.7	%)		n/a			(9.9	%)		(9.9	%)		(10.2	%)		(11.1	%)		(12.9	%)		(14.9	%)
Equity in net gain/(loss) of associates		n/a			n/a			0.0	%		0.0	%		0.0	%		0.0	%		n/a			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Other (expense)/income, net		n/a			n/a			(0.6	%)		(2.0	%)		(2.3	%)		(1.1	%)		n/a			3.0	%		0.0	%		(1.9	%)		(2.9	%)		(1.1	%)		(0.1	%)
Income tax expense		n/a			n/a			5.1	%		2.3	%		3.6	%		1.3	%		n/a			20.4	%		2.5	%		(1.2	%)		7.2	%		(4.8	%)		(0.4	%)
Net income/(loss)		n/a			n/a			(17.3	%)		(51.0	%)		(43.8	%)		(7.6	%)		n/a			(461.0	%)		(30.8	%)		(21.9	%)		(67.8	%)		(61.5	%)		(17.4	%)

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Uzbekistan

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		18.2			23.2			30.2			36.5			39.5			52.0			58.4			66.5			58.5			52.6			50.1			50.2			45.3
Gross margin		15.2			20.0			25.8			31.0			33.4			43.0			48.6			52.8			47.1			41.2			37.7			37.9			34.3
Gross margin, %		83.5	%		86.2	%		85.4	%		84.9	%		84.6	%		82.7	%		83.2	%		79.4	%		80.5	%		78.3	%		75.2	%		75.5	%		75.7	%
Adjusted OIBDA		8.7			11.4			16.9			17.8			20.9			27.8			33.0			34.2			33.1			26.9			23.5			23.0			19.6
Adjusted OIBDA, %		47.8	%		49.1	%		56.0	%		48.8	%		52.9	%		53.5	%		56.5	%		51.4	%		56.6	%		51.1	%		46.9	%		45.8	%		43.3	%
SG&A		6.4			8.4			8.7			13.1			12.3			14.9			15.4			18.3			13.6			13.9			13.8			14.3			14.1
including Sales & Marketing Expenses		2.8			2.5			3.9			5.3			4.9			5.1			6.6			7.1			3.8			3.7			4.8			4.3			3.5
including advertising		0.7			0.9			1.1			1.4			2.0			1.9			2.3			2.3			0.9			1.4			1.6			1.0			1.0
including General & Administrative Costs		3.6			5.9			4.8			7.8			7.4			9.8			8.8			11.2			9.8			10.2			9.0			10.0			10.6
SG&A, %		35.2	%		36.2	%		28.8	%		35.9	%		31.1	%		28.7	%		26.4	%		27.5	%		23.2	%		26.4	%		27.5	%		28.5	%		31.1	%
Net Income attributable to OJSC VimpelCom		2.5			4.3			6.9			6.0			7.5			14.4			22.0			11.8			9.7			5.3			1.8			(1.5	)		(10.6	)
Capital Expenditures		7.9			18.5			23.8			83.6			48.0			82.8			28.4			17.2			1.1			7.4			7.2			21.1			17.9
MOBILE		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		18.2			23.2			30.2			36.5			38.7			49.5			55.5			63.5			55.5			49.5			46.8			47.5			42.9
including Mobile Interconnect		0.002			0.003			0.004			0.01			0.01			0.01			0.01			3.4			3.0			3.8			5.0			5.5			5.1
Adjusted OIBDA		8.7			11.4			16.9			17.8			20.6			27.3			32.0			33.0			31.9			25.7			22.2			22.0			18.6
Adjusted OIBDA, %		47.8	%		49.1	%		56.0	%		48.8	%		53.2	%		55.2	%		57.7	%		52.0	%		57.5	%		51.9	%		47.4	%		46.3	%		43.4	%
Subscriptions (‘000)		1,106.3			1,192.4			1,586.9			2,119.6			2,422.2			2,754.2			3,148.0			3,636.2			3,653.1			3,604.6			3,652.0			3,515.0			3,489.0
ARPU, US$		6.7			7.2			7.6			6.8			5.8			6.6			6.5			6.5			5.2			4.7			4.5			4.6			4.2
MOU, min		242.2			265.6			289.8			283.4			265.3			294.6			298.5			288.6			238.6			225.6			409.3			387.3			369.2
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			11.2	%		12.8	%		13.1	%		14.2	%		14.9	%		15.1	%		11.2	%		17.4	%		20.1	%		14.7	%
FIXED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		0			0			0			0			0.8			2.5			2.9			3.0			3.0			3.1			3.3			2.7			2.4
including business segment		0			0			0			0			0.7			2.3			2.3			2.2			2.3			2.3			2.6			2.1			1.5
including wholesale segment		0			0			0			0			0.00			0.00			0.10			0.10			0.00			0.00			0.00			0.00			0.4
including residential segment		0			0			0			0			0.10			0.20			0.50			0.70			0.70			0.70			0.70			0.60			0.5
Adjusted OIBDA		0			0			0			0			0.3			0.5			1			1.2			1.2			1.2			1.3			1			1.0
Adjusted OIBDA, %		0			0			0			0			37.5	%		20.0	%		34.5	%		40.0	%		40.0	%		38.7	%		39.4	%		37.0	%		41.7	%
Broadband subscriptions (‘000)		0			0			0			0			0			0			0			5.8			6.8			7.6			8.3			9.0			10.0
Reconciliation of OIBDA total		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Adjusted OIBDA		8.7			11.4			16.9			17.8			20.9			27.8			33.0			34.2			33.1			26.9			23.5			23.0			19.6
Depreciation		(3.1	)		(3.3	)		(4.0	)		(5.1	)		(6.7	)		(6.8	)		(7.2	)		(8.9	)		(11.4	)		(11.2	)		(12.4	)		(20.7	)		(21.9	)
Amortization		(3.4	)		(3.4	)		(3.4	)		(3.5	)		(3.8	)		(3.7	)		(3.8	)		(4.6	)		(4.1	)		(3.6	)		(3.5	)		(2.9	)		(3.4	)
Impairment loss		—			—			—			—			—			—			—			—			—			—			—			—			—
Operating income		2.2			4.7			9.5			9.2			10.4			17.3			22.0			20.7			17.6			12.1			7.6			(0.6	)		(5.7	)
Interest income		—			—			—			—			—			—			—			—			—			—			—			0.8			0.8
Net foreign exchange gain/(loss)		(0.3	)		—			(0.3	)		(0.5	)		(0.2	)		(0.2	)		(0.5	)		(3.7	)		(2.4	)		(3.5	)		(1.2	)		(0.1	)		(3.7	)
Interest expense		(0.3	)		(0.5	)		(1.0	)		(1.3	)		(1.6	)		(0.1	)		(0.4	)		(2.1	)		(3.3	)		(2.4	)		(3.5	)		(3.5	)		(3.5	)
Equity in net gain/(loss) of associates		—			—			—			—			—			—			—			—			—			—			—			—			—
Other (expense)/income, net		(0.1	)		—			0.2			—			—			(0.3	)		2.6			(0.2	)		(0.2	)		(0.1	)		(0.1	)		(0.1	)		(0.1	)
Income tax expense		(1.0	)		(0.1	)		1.5			1.5			1.0			2.2			1.3			2.9			1.6			0.5			0.6			(2.4	)		(1.9	)
Net income/(loss)		2.5			4.3			6.9			5.9			7.6			14.5			22.4			11.8			10.1			5.6			2.2			(1.1	)		(10.3	)
Adjusted OIBDA margin as a percentage of net operating revenue		47.8	%		49.1	%		56.0	%		48.8	%		52.9	%		53.5	%		56.5	%		51.4	%		56.6	%		51.1	%		46.9	%		45.8	%		43.3	%
Depreciation		(17.0	%)		(14.1	%)		(13.2	%)		(14.0	%)		(17.0	%)		(13.1	%)		(12.3	%)		(13.4	%)		(19.5	%)		(21.3	%)		(24.7	%)		(41.2	%)		(48.4	%)
Amortization		(18.7	%)		(14.7	%)		(11.3	%)		(9.6	%)		(9.6	%)		(7.1	%)		(6.5	%)		(6.9	%)		(7.0	%)		(6.8	%)		(7.0	%)		(5.8	%)		(7.5	%)
Impairment loss		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income		12.1	%		20.3	%		31.5	%		25.2	%		26.3	%		33.3	%		37.7	%		31.1	%		30.1	%		23.0	%		15.2	%		(1.2	%)		(12.6	%)
Interest income		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		1.6	%		1.8	%
Net foreign exchange gain/(loss)		-1.6	%		0.0	%		-1.0	%		-1.4	%		-0.5	%		-0.4	%		-0.9	%		-5.6	%		-4.1	%		-6.7	%		-2.4	%		(0.2	%)		(8.2	%)
Interest expense		-1.6	%		-2.2	%		-3.3	%		-3.6	%		-4.1	%		-0.2	%		-0.7	%		-3.2	%		-5.6	%		-4.6	%		-7.0	%		(7.0	%)		(7.7	%)
Equity in net gain/(loss) of associates		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Other (expense)/income, net		-0.7	%		0.0	%		0.6	%		0.1	%		0.0	%		-0.6	%		4.5	%		-0.2	%		-0.4	%		-0.1	%		-0.2	%		(0.2	%)		(0.2	%)
Income tax expense		-5.5	%		-0.4	%		5.0	%		4.1	%		2.5	%		4.2	%		2.2	%		4.4	%		2.7	%		1.0	%		1.2	%		(4.8	%)		(4.2	%)
Net income/(loss)		13.7	%		18.5	%		22.8	%		16.2	%		19.2	%		27.9	%		38.4	%		17.7	%		17.3	%		10.6	%		4.4	%		(2.2	%)		(22.7	%)

---

Armenia

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		54.1			58.4			63.4			59.8			59.1			64.7			68.8			63.7			52.7			49.2			51.4			47.3			41.7
Gross margin		42.4			46.0			49.8			47.3			45.8			50.0			52.6			48.7			41.3			37.8			38.8			35.3			30.8
Gross margin, %		78.4	%		78.8	%		78.5	%		79.1	%		77.5	%		77.3	%		76.5	%		76.5	%		78.4	%		76.8	%		75.5	%		74.6	%		73.9	%
Adjusted OIBDA		27.3			30.1			32.9			32.5			29.1			30.3			33.5			31.7			27.2			24.8			26.3			22.7			19.1
Adjusted OIBDA, %		50.5	%		51.5	%		51.9	%		54.3	%		49.2	%		46.8	%		48.7	%		49.8	%		51.6	%		50.4	%		51.2	%		48.0	%		45.8	%
SG&A		14.2			14.8			15.9			13.4			16.7			18.7			18.5			16.7			13.2			11.8			12.1			12.6			11.5
including Sales & Marketing Expenses		1.7			2.2			2.4			3.5			2.7			3.8			3.7			2.5			1.7			1.6			1.6			2.3			1.5
including advertising		0.6			0.8			0.8			1.7			1.2			1.6			1.1			1.2			0.6			0.6			0.5			1.1			0.6
including General & Administrative Costs		12.5			12.6			13.5			9.9			14.0			14.9			14.8			14.2			11.5			10.2			10.5			10.3			10.0
SG&A, %		26.2	%		25.3	%		25.1	%		22.4	%		28.3	%		28.9	%		26.9	%		26.2	%		25.0	%		24.0	%		23.5	%		26.6	%		27.6	%
Net Income attributable to OJSC VimpelCom		2.6			4.0			16.0			0.3			-15.0			-1.3			3.7			-12.0			10.0			4.2			2.7			-1.6			10.7
Capital Expenditures		5.4			20.4			20.7			44.3			14.6			20.9			19.1			23.7			0.2			0.4			1.3			7.8			3.1
MOBILE		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		19.9			23.2			25.8			23.5			22.9			26.4			31.6			27.2			21.3			19.7			20.3			18.3			15.1
including Mobile Interconnect		2.3			3.2			4.1			4.2			4.5			5.3			8.0			7.1			5.2			5.1			5.4			5.1			4.1
Adjusted OIBDA		11.1			11.6			13.4			9.7			10.4			10.3			13.9			12.5			10.5			9.2			9.8			7.6			6.2
Adjusted OIBDA, %		55.8	%		50.0	%		51.9	%		41.3	%		45.4	%		39.0	%		44.0	%		46.0	%		49.3	%		46.7	%		48.3	%		41.5	%		41.1	%
Subscriptions (‘000)		439.9			471.0			447.0			442.4			520.4			654.5			783.6			544.3			480.8			486.3			502.0			545.0			549.0
ARPU, US$		14.5			17.3			17.6			17.4			16.1			15.3			13.9			13.6			13.9			13.6			13.7			11.5			9.0
MOU, min		141.3			185.1			181.0			171.8			158.9			164.9			139.9			150.0			174.7			238.4			269.0			268.2			345.6
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			12.3	%		28.8	%		13.1	%		18.5	%		45.7	%		24.5	%		12.2	%		11.4	%		10.5	%		13.6	%
FIXED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		34.2			35.2			37.6			36.3			36.2			38.3			37.2			36.5			31.4			29.5			31.1			29.0			26.6
including business segment		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			6.0			5.4
including wholesale segment		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			4.7			8.7
including residential segment		34.2			35.2			37.6			36.3			36.2			38.3			37.2			36.5			31.4			29.5			31.1			18.3			12.5
Adjusted OIBDA		16.2			18.5			19.5			22.8			18.7			20.0			19.6			19.2			16.7			15.6			16.5			15.1			12.9
Adjusted OIBDA, %		47.4	%		52.6	%		51.9	%		62.8	%		51.7	%		52.2	%		52.7	%		52.6	%		53.2	%		52.9	%		53.1	%		52.1	%		48.5	%
Broadband subscriptions (‘000)		0			0			0			0			0			0			5.4			9.2			15.3			19.2			18.1			26.2			31.2
Reconciliation of OIBDA total		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Adjusted OIBDA		27.3			30.1			32.9			32.5			29.1			30.3			33.5			31.7			27.2			24.8			26.3			22.7			19.1
Depreciation		(13.9	)		(18.7	)		(10.6	)		(21.9	)		(27.0	)		(22.8	)		(13.2	)		(26.4	)		(14.0	)		(10.5	)		(15.7	)		(17.0	)		(9.8	)
Amortization		(5.9	)		(5.9	)		(7.0	)		(7.7	)		(10.1	)		(9.8	)		(10.0	)		(9.9	)		(6.6	)		(5.8	)		(5.8	)		(5.7	)		(1.3	)
Impairment loss		—			—			—			—			—			—			—			—			—			—			—			—			—
Operating income		7.5			5.5			15.3			2.9			(8.0	)		(2.3	)		10.3			(4.6	)		6.6			8.5			4.8			—			8.0
Interest income		0.1			0.2			0.2			0.3			0.3			0.4			0.5			0.7			0.9			1.3			1.1			1.1			1.3
Net foreign exchange gain/(loss)		(0.4	)		1.5			(1.4	)		1.5			(2.9	)		0.6			2.9			0.4			4.9			(2.5	)		1.1			(0.8	)		4.0
Interest expense		(0.6	)		(0.1	)		(0.3	)		(1.3	)		(0.7	)		(0.7	)		(0.5	)		(0.5	)		(0.4	)		(0.2	)		(0.3	)		(0.3	)		(0.2	)
Equity in net gain/(loss) of associates		—			—			—			—			—			—			—			—			—			—			—			—			—
Other (expense)/income, net		(0.9	)		(1.0	)		—			(1.3	)		(3.0	)		(1.5	)		(1.6	)		(4.3	)		(0.6	)		1.1			(1.9	)		(0.4	)		(0.4	)
Income tax expense		(2.9	)		(1.9	)		2.2			(1.8	)		(0.7	)		2.2			(7.9	)		(3.7	)		(1.4	)		(4.0	)		(2.1	)		(1.2	)		(2.0	)
Net income/(loss)		2.8			4.2			16.0			0.3			(15.0	)		(1.3	)		3.7			(12.0	)		10.0			4.2			2.7			(1.6	)		10.7
Adjusted OIBDA margin as a percentage of net operating revenue		50.5	%		51.5	%		51.9	%		54.3	%		49.2	%		46.8	%		48.7	%		49.8	%		51.6	%		50.4	%		51.2	%		48.0	%		45.8	%
Depreciation		(25.7	)%		(32.0	)%		(16.8	)%		(36.6	)%		(45.6	)%		(35.3	)%		(19.2	)%		(41.5	)%		(26.6	)%		(21.3	)%		(30.6	)%		(35.9	)%		(23.5	)%
Amortization		(10.9	)%		(10.1	)%		(11.0	)%		(12.9	)%		(17.1	)%		(15.1	)%		(14.5	)%		(15.5	)%		(12.5	)%		(11.8	)%		(11.3	)%		(12.1	)%		(3.1	)%
Impairment loss		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income		13.9	%		9.4	%		24.1	%		4.8	%		(13.5	)%		(3.6	)%		15.0	%		(7.2	)%		12.5	%		17.3	%		9.3	%		0.0	%		19.2	%
Interest income		0.2	%		0.3	%		0.3	%		0.5	%		0.5	%		0.6	%		0.7	%		1.1	%		1.7	%		2.6	%		2.1	%		2.3	%		3.1	%
Net foreign exchange gain/(loss)		(0.7	)%		2.6	%		(2.2	)%		2.5	%		(4.9	)%		0.9	%		4.2	%		0.6	%		9.3	%		(5.1	)%		2.1	%		(1.7	)%		9.6	%
Interest expense		(1.1	)%		(0.2	)%		(0.5	)%		(2.2	)%		(1.2	)%		(1.1	)%		(0.7	)%		(0.8	)%		(0.8	)%		(0.4	)%		(0.6	)%		(0.6	)%		(0.5	)%
Equity in net gain/(loss) of associates		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Other (expense)/income, net		(1.7	)%		(1.6	)%		0.0	%		(2.1	)%		(5.1	)%		(2.2	)%		(2.3	)%		(6.7	)%		(1.0	)%		2.2	%		(3.5	)%		(0.9	)%		(0.9	)%
Income tax expense		(5.4	)%		(3.3	)%		3.5	%		(3.0	)%		(1.2	)%		3.4	%		(11.5	)%		(5.8	)%		(2.7	)%		(8.1	)%		(4.1	)%		(2.5	)%		(4.8	)%
Net income/(loss)		5.2	%		7.2	%		25.2	%		0.5	%		(25.4	)%		(2.0	)%		5.4	%		(18.8	)%		19.0	%		8.5	%		5.3	%		(3.4	)%		25.7	%

---

Tajikistan

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		2.9			5.2			7.7			8.1			8.4			11.2			14.8			16.4			14.4			14.3			14.9			15.6			14.8
Gross margin		1.6			3.2			5.2			5.1			5.2			7.2			10.0			11.5			10.3			10.5			11.4			11.6			10.8
Gross margin, %		55.2	%		61.5	%		67.5	%		63.0	%		61.9	%		64.3	%		67.6	%		70.1	%		71.5	%		73.4	%		76.5	%		74.4	%		73.0	%
Adjusted OIBDA		-0.3			0.1			1.6			1.4			1.3			2.6			4.8			5.3			4.9			5.4			5.2			7.1			4.4
Adjusted OIBDA, %		n/a			1.9	%		20.8	%		17.3	%		15.5	%		23.2	%		32.4	%		32.3	%		34.0	%		37.8	%		34.9	%		45.5	%		29.7	%
SG&A		1.9			3.1			3.5			3.5			4.0			4.5			5.2			6.2			5.4			5.1			6.2			4.5			6.3
including Sales & Marketing Expenses		0.8			1.3			1.5			1.4			1.2			1.4			1.7			1.7			1.3			1.1			1.0			1.0			1.2
including advertising		0.3			0.7			0.5			0.5			0.6			0.6			0.5			0.5			0.3			0.2			0.3			0.3			0.3
including General & Administrative Costs		1.1			1.8			2.0			2.1			2.8			3.1			3.5			4.5			4.1			4.0			5.2			3.5			5.1
SG&A, %		65.5	%		59.6	%		45.5	%		43.2	%		47.6	%		40.2	%		35.1	%		37.8	%		37.5	%		35.7	%		41.6	%		28.8	%		42.6	%
Net Income attributable to OJSC VimpelCom		-1.0			-1.8			-0.3			-2.5			-1.2			-3.0			-0.3			-0.7			-0.2			0.0			-0.3			0.6			-0.2
Capital Expenditures		13.5			5.7			6.1			20.2			7.2			13.5			6.4			18.0			0.4			0.8			0.5			5.4			0.1
MOBILE		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		2.9			5.2			7.7			8.1			8.4			11.2			14.8			16.4			14.4			14.3			14.9			15.6			13.3
including Mobile Interconnect		0.2			0.4			1.7			2.1			2.0			2.9			4.7			5.4			4.3			4.7			5.4			6.0			5.6
Adjusted OIBDA		-0.3			0.1			1.6			1.4			1.3			2.6			4.8			5.3			4.9			5.4			5.2			7.1			4.1
Adjusted OIBDA, %		n/a			1.9	%		20.8	%		17.3	%		15.5	%		23.2	%		32.4	%		32.3	%		34.0	%		37.8	%		34.9	%		45.5	%		29.7	%
Subscriptions ('000)		145.3			204.9			268.4			339.4			377.9			435.3			526.6			624.6			722.3			677.1			706.0			743.0			820.0
ARPU, US$		8.7			10.1			10.8			9.0			8.0			9.4			10.4			9.6			7.1			6.9			7.2			7.2			5.6
MOU, min		205.8			224.2			230.3			216.3			205.8			241.1			255.9			243.4			171.7			173.1			173.3			173.6			157.9
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			5.3	%		8.6	%		9.7	%		10.6	%		12.7	%		2.7	%		20.6	%		14.9	%		14.7	%		13.6	%
FIXED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		0			0			0			0			0			0			0			0			0			0			0			0			1.5
including business segment		0			0			0			0			0			0			0			0			0			0			0			0			0.0
including wholesale segment		0			0			0			0			0			0			0			0			0			0			0			0			1.5
including residential segment		0			0			0			0			0			0			0			0			0			0			0			0			0.0
Adjusted OIBDA		0			0			0			0			0			0			0			0			0			0			0			0			0.3
Adjusted OIBDA, %		0			0			0			0			0			0			0			0			0			0			0			0			20.0	%
Broadband subscriptions ('000)		0			0			0			0			0			0			0			0			0			0			0			0			0
Reconciliation of OIBDA total		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Adjusted OIBDA		(0.3	)		0.1			1.6			1.4			1.3			2.6			4.8			5.3			4.9			5.4			5.2			7.1			4.4
Depreciation		(0.3	)		(0.6	)		(0.9	)		(1.5	)		(1.7	)		(3.1	)		(3.1	)		(3.5	)		(3.5	)		(3.5	)		(3.5	)		(4.7	)		(3.7	)
Amortization		(0.2	)		(0.2	)		(0.2	)		(0.2	)		(0.2	)		(0.3	)		(0.2	)		(0.2	)		(0.2	)		(0.3	)		(0.3	)		(0.3	)		(0.2	)
Impairment loss		—			—			—			—			—			—			—			—			—			—			—			—			—
Operating income		(0.8	)		(0.7	)		0.5			(0.3	)		(0.6	)		(0.8	)		1.5			1.6			1.2			1.6			1.4			2.1			0.5
Interest income		—			—			—			—			—			—			—			—			—			—			—			—			—
Net foreign exchange gain/(loss)		—			—			—			0.4			0.1			(0.2	)		0.1			—			(0.2	)		—			—			(0.2	)		(0.1	)
Interest expense		(0.6	)		(0.8	)		(0.9	)		(1.2	)		(1.4	)		(1.6	)		(1.8	)		(1.8	)		(1.7	)		(1.7	)		(1.6	)		(1.6	)		(1.5	)
Equity in net gain/(loss) of associates		—			—			—			—			—			—			—			—			—			—			—			—			—
Other (expense)/income, net		(0.1	)		0.1			—			(0.1	)		0.1			(0.1	)		(0.2	)		(0.7	)		0.3			—			(0.3	)		0.1			—
Income tax expense		0.3			(0.1	)		0.1			(1.5	)		0.6			0.1			0.1			0.2			0.1			0.1			0.1			0.3			0.8
Net income/(loss)		(1.2	)		(1.5	)		(0.3	)		(2.7	)		(1.2	)		(2.6	)		(0.3	)		(0.7	)		(0.3	)		0.0			(0.4	)		0.7			(0.3	)
Adjusted OIBDA margin as a percentage of net operating revenue		n/a			1.9	%		20.8	%		17.3	%		15.5	%		23.2	%		32.4	%		32.3	%		34.0	%		37.8	%		34.9	%		45.5	%		29.7	%
Depreciation		n/a			(11.6	%)		(11.7	%)		(18.5	%)		(20.2	%)		(27.6	%)		(20.9	%)		(21.3	%)		(24.3	%)		(24.5	%)		(23.5	%)		(30.1	%)		(24.9	%)
Amortization		n/a			(3.8	%)		(2.6	%)		(2.5	%)		(2.4	%)		(2.7	%)		(1.4	%)		(1.2	%)		(1.4	%)		(2.1	%)		(2.0	%)		(1.9	%)		(1.4	%)
Impairment loss		n/a			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income		n/a			(13.5	%)		6.5	%		(3.7	%)		(7.1	%)		(7.1	%)		10.1	%		9.8	%		8.3	%		11.2	%		9.4	%		13.5	%		3.4	%
Interest income		n/a			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Net foreign exchange gain/(loss)		n/a			0.0	%		0.0	%		4.9	%		1.2	%		(1.8	%)		0.7	%		0.0	%		(1.4	%)		0.0	%		0.0	%		(1.3	%)		(0.7	%)
Interest expense		n/a			(15.4	%)		(11.7	%)		(14.8	%)		(16.7	%)		(14.3	%)		(12.2	%)		(11.0	%)		(11.8	%)		(11.9	%)		(10.7	%)		(10.3	%)		(10.1	%)
Equity in net gain/(loss) of associates		n/a			0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Other (expense)/income, net		n/a			2.0	%		0.0	%		(1.2	%)		1.2	%		(0.9	%)		(1.3	%)		(4.3	%)		2.1	%		0.0	%		(2.1	%)		0.7	%		0.0	%
Income tax expense		n/a			(1.9	%)		1.3	%		(18.5	%)		7.1	%		0.9	%		0.7	%		1.2	%		0.7	%		0.7	%		0.7	%		1.9	%		5.4	%
Net income/(loss)		n/a			(28.8	%)		(3.9	%)		(33.3	%)		(14.3	%)		(23.2	%)		(2.0	%)		(4.3	%)		(2.1	%)		0.0	%		(2.7	%)		4.5	%		(2.0	%)

---

Georgia

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		0.03			0.2			0.3			0.9			2.4			3.9			5.4			5.9			6.0			7.1			8.9			10.2			10.9
Gross margin		0.00			-0.01			0.03			0.24			0.8			1.6			2.6			2.6			2.9			3.6			4.7			5.1			5.7
Gross margin, %		n/a			n/a			10.0	%		26.7	%		33.3	%		41.0	%		48.1	%		44.1	%		48.3	%		50.7	%		52.8	%		50.0	%		52.3	%
Adjusted OIBDA		-1.2			-1.9			-2.0			-2.3			-2.2			-2.1			-1.1			-1.2			-0.5			0.1			1.0			0.4			1.1
Adjusted OIBDA, %		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			1.4	%		11.2	%		3.9	%		10.1	%
SG&A		1.2			1.9			2.1			2.6			3.0			3.7			3.7			3.8			3.4			3.5			3.8			4.7			4.5
including Sales & Marketing Expenses		0.2			0.3			0.4			0.6			0.6			0.6			0.8			0.9			0.6			0.7			0.8			1.1			1.1
including advertising		0.0			1.2			0.3			0.4			0.3			0.4			0.6			0.6			0.2			0.2			0.3			0.4			0.3
including General & Administrative Costs		1.0			1.6			1.7			2.0			2.4			3.1			2.9			2.9			2.8			2.8			3.0			3.6			3.4
SG&A, %		n/a			950.0	%		700.0	%		288.9	%		125.0	%		94.9	%		68.5	%		64.4	%		56.7	%		49.3	%		42.7	%		46.1	%		41.3	%
Net Income attributable to OJSC VimpelCom		-1.9			-2.0			-2.3			-1.4			0.1			-1.5			-5.3			-30.7			-3.6			-2.9			-4.1			-3.9			-6.1
Capital Expenditures		16.6			9.4			4.8			28.9			7.0			12.2			8.9			7.1			1.6			2.1			2.5			3.3			4.3
MOBILE		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		0.03			0.2			0.3			0.9			2.4			3.9			5.4			5.9			6.0			7.1			8.9			10.2			10.6
including Mobile Interconnect		0.00			0.0			0.1			0.2			0.6			0.9			1.3			1.5			1.5			1.8			2.4			2.5			2.3
Adjusted OIBDA		-1.2			-1.9			-2.0			-2.3			-2.2			-2.1			-1.1			-1.2			-0.5			0.1			1.0			0.4			1.1
Adjusted OIBDA, %		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			1.4	%		11.2	%		3.9	%		10.1	%
Subscriptions (‘000)		7.3			14.0			26.6			72.7			146.2			168.6			189.0			225.1			246.4			289.2			341.0			399.0			431.0
ARPU, US$		3.2			4.8			6.3			9.0			7.4			8.2			9.9			9.7			8.4			8.8			9.2			8.4			7.5
MOU, min		47.9			82.5			85.1			121.5			87.1			89.3			109.8			129.8			121.2			123.1			129.3			131.1			125.0
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			17.6	%		1.4	%		16.8	%		13.8	%		11.7	%		7.8	%		10.8	%		10.7	%		15.7	%		11.2	%
FIXED		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenues		0			0			0			0			0			0			0			0			0			0			0			0			0.3
including business segment		0			0			0			0			0			0			0			0			0			0			0			0			0.0
including wholesale segment		0			0			0			0			0			0			0			0			0			0			0			0			0.3
including residential segment		0			0			0			0			0			0			0			0			0			0			0			0			0.0
Adjusted OIBDA		0			0			0			0			0			0			0			0			0			0			0			0			0.0
Adjusted OIBDA, %		0			0			0			0			0			0			0			0			0			0			0			0			6.7	%
Broadband subscriptions (‘000)		0			0			0			0			0			0			0			0			0			0			0			0			0
Reconciliation of OIBDA total		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Adjusted OIBDA		(1.2	)		(1.9	)		(2.0	)		(2.3	)		(2.2	)		(2.1	)		(1.1	)		(1.2	)		(0.5	)		0.1			1.0			0.4			1.1
Depreciation		(0.1	)		(0.5	)		(0.8	)		(1.1	)		(1.5	)		(1.9	)		(2.1	)		(2.7	)		(2.9	)		(2.9	)		(2.8	)		(3.1	)		(2.8	)
Amortization		(0.9	)		(1.2	)		(1.3	)		(1.3	)		(1.3	)		(2.0	)		(2.0	)		(1.8	)		(1.7	)		(1.7	)		(1.7	)		(1.6	)		(1.6	)
Impairment loss		—			—			—			—			—			—			—			—			—			—			—			—			—
Operating income		(2.2	)		(3.6	)		(4.1	)		(4.7	)		(5.0	)		(6.0	)		(5.2	)		(5.7	)		(5.1	)		(4.5	)		(3.5	)		(4.3	)		(3.3	)
Interest income		—			—			—			—			—			—			—			—			—			—			—			—			—
Net foreign exchange gain/(loss)		0.2			0.6			0.3			2.4			6.5			4.1			1.1			(22.8	)		(0.3	)		1.2			(1.8	)		(0.9	)		(6.1	)
Interest expense		(0.4	)		(0.6	)		(0.9	)		(1.2	)		(1.5	)		(1.9	)		(2.2	)		(2.6	)		(2.5	)		(2.7	)		(2.7	)		(2.7	)		(2.8	)
Equity in net gain/(loss) of associates		—			—			—			—			—			—			—			—			—			—			—			—			—
Other (expense)/income, net		—			—			—			0.1			(0.1	)		0.1			(0.1	)		0.1			—			(0.2	)		(0.1	)		0.1			—
Income tax expense		(1.3	)		(0.3	)		0.2			0.6			0.3			0.8			0.5			0.3			0.8			0.5			0.1			0.2			0.2
Net income/(loss)		(3.7	)		(3.9	)		(4.5	)		(2.8	)		0.2			(2.9	)		(5.9	)		(30.7	)		(7.1	)		(5.7	)		(8.0	)		(7.6	)		(12.0	)
Adjusted OIBDA margin as a percentage of net operating revenue		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			1.4	%		11.2	%		3.9	%		10.1	%
Depreciation		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			(40.8	)%		(31.5	)%		(30.4	)%		(25.7	)%
Amortization		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			(23.9	)%		(19.1	)%		(15.7	)%		(14.7	)%
Impairment loss		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			0.0	%		0.0	%		0.0	%		0.0	%
Operating income		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			(63.4	)%		(39.3	)%		(42.2	)%		(30.3	)%
Interest income		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			0.0	%		0.0	%		0.0	%		0.0	%
Net foreign exchange gain/(loss)		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			16.9	)%		(20.2	)%		(8.8	)%		(55.9	)%
Interest expense		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			(38.0	)%		(30.3	)%		(26.5	)%		(25.7	)%
Equity in net gain/(loss) of associates		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			0.0	%		0.0	%		0.0	%		0.0	%
Other (expense)/income, net		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			(2.8	)%		(1.2	)%		1.0	%		0.0	%
Income tax expense		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			7.0	%		1.1	%		2.0	%		1.8	%
Net income/(loss)		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			(80.3	)%		(89.9	)%		(74.5	)%		(110.1	)%

---

Kyrgyzstan

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009		Q3 2009		Q4 2009		Q1 2010
Net operating revenue		0		0		0		0		0		0		0		0		0		0		0		0		25.5
Gross margin		0		0		0		0		0		0		0		0		0		0		0		0		20.0
Gross margin, %		0		0		0		0		0		0		0		0		0		0		0		0		78.4	%
Adjusted OIBDA		0		0		0		0		0		0		0		0		0		0		0		0		9.5
Adjusted OIBDA, %		0		0		0		0		0		0		0		0		0		0		0		0		37.3	%
SG&A		0		0		0		0		0		0		0		0		0		0		0		0		7.5
including Sales & Marketing Expenses		0		0		0		0		0		0		0		0		0		0		0		0		1.6
including advertising		0		0		0		0		0		0		0		0		0		0		0		0		0.5
including General & Administrative Costs		0		0		0		0		0		0		0		0		0		0		0		0		5.9
SG&A, %		0		0		0		0		0		0		0		0		0		0		0		0		29.4	%
Net Income attributable to OJSC VimpelCom		0		0		0		0		0		0		0		0		0		0		0		0		0.0
Capital Expenditures		0		0		0		0		0		0		0		0		0		0		0		0		1.0
MOBILE		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009		Q3 2009		Q4 2009		Q1 2010
Net operating revenue		0		0		0		0		0		0		0		0		0		0		0		0		25.5
including Mobile Interconnect		0		0		0		0		0		0		0		0		0		0		0		0		6.0
Adjusted OIBDA		0		0		0		0		0		0		0		0		0		0		0		0		9.5
Adjusted OIBDA, %		0		0		0		0		0		0		0		0		0		0		0		0		37.3	%
Subscriptions ('000)		0		0		0		0		0		0		0		0		0		0		0		0		1,774
ARPU, US$		0		0		0		0		0		0		0		0		0		0		0		0		4.7
MOU, min		0		0		0		0		0		0		0		0		0		0		0		0		193.9
Churn 3 months active base (quarterly), %		0		0		0		0		0		0		0		0		0		0		0		0		17.2	%
FIXED		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009		Q3 2009		Q4 2009		Q1 2010
Net operating revenue		0		0		0		0		0		0		0		0		0		0		0		0		0
including business segment		0		0		0		0		0		0		0		0		0		0		0		0		0
including wholesale segment		0		0		0		0		0		0		0		0		0		0		0		0		0
including residential segment		0		0		0		0		0		0		0		0		0		0		0		0		0
Adjusted OIBDA		0		0		0		0		0		0		0		0		0		0		0		0		0
Adjusted OIBDA, %		0		0		0		0		0		0		0		0		0		0		0		0		0
Broadband subscriptions ('000)		0		0		0		0		0		0		0		0		0		0		0		0		0
Reconciliation of OIBDA total		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008		Q4 2008		Q1 2009		Q2 2009		Q3 2009		Q4 2009		Q1 2010
Adjusted OIBDA		0		0		0		0		0		0		0		0		0		0		0		0		9.5
Depreciation		0		0		0		0		0		0		0		0		0		0		0		0		(3.3	)
Amortization		0		0		0		0		0		0		0		0		0		0		0		0		(0.8	)
Impairment loss												0		0		0		0		0		0		0		—
Operating income		0		0		0		0		0		0		0		0		0		0		0		0		5.4
Interest income		0		0		0		0		0		0		0		0		0		0		0		0		0.7
Net foreign exchange gain/(loss)		0		0		0		0		0		0		0		0		0		0		0		0		0.4
Interest expense		0		0		0		0		0		0		0		0		0		0		0		0		0.0
Equity in net gain/(loss) of associates		0		0		0		0		0		0		0		0		0		0		0		0		0.0
Other (expense)/income, net		0		0		0		0		0		0		0		0		0		0		0		0		0.1
Income tax expense		0		0		0		0		0		0		0		0		0		0		0		0		(0.6	)
Net income/(loss)		0		0		0		0		0		0		0		0		0		0		0		0		6.0
Adjusted OIBDA margin as a percentage of net operating revenue		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		37.3	%
Depreciation		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		(13.0	%)
Amortization		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		(3.1	%)
Impairment loss												n/a		n/a		n/a		n/a		n/a		n/a		n/a		0.0	%
Operating income		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		21.2	%
Interest income		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		2.7	%
Net foreign exchange gain/(loss)		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		1.6	%
Interest expense		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		0.0	%
Equity in net gain/(loss) of associates		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		0.0	%
Other (expense)/income, net		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		0.4	%
Income tax expense		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		(2.4	%)
Net income/(loss)		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		n/a		23.5	%

---

SEA

(in US$ millions, unless stated otherwise, unaudited)

 

CONSOLIDATED		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenue		0		0		0		0		0		0		0.0			0.0			0.0			0.9			2.4			2.4			4.4
Gross margin		0		0		0		0		0		0		0.0			0.0			0.0			-1.0			-0.7			0.5			2.3
Gross margin, %		0		0		0		0		0		0		n/a			n/a			n/a			-111.1	%		-29.2	%		20.8	%		52.3	%
Adjusted OIBDA		0		0		0		0		0		0		-0.2			-0.8			-1.6			-5.5			-7.5			-6.4			-5.9
Adjusted OIBDA, %		0		0		0		0		0		0		n/a			n/a			n/a			n/a			n/a			n/a			n/a
SG&A		0		0		0		0		0		0		0.2			0.8			1.6			4.5			6.8			7.0			8.2
including Sales & Marketing Expenses		0		0		0		0		0		0		0.0			0.0			0.0			1.7			2.5			2.0			3.0
including advertising		0		0		0		0		0		0		0.0			0.0			0.0			1.1			1.1			0.7			0.7
including General & Administrative Costs		0		0		0		0		0		0		0.2			0.8			1.6			2.8			4.3			5.0			5.2
SG&A, %		0		0		0		0		0		0		n/a			n/a			n/a			500.0	%		283.3	%		291.7	%		186.4	%
Net Income attributable to OJSC VimpelCom		0		0		0		0		0		0		-0.1			1.0			1.3			-10.3			-16.4			-25.4			-15.5
Capital Expenditures		0		0		0		0		0		0		0.4			7.4			12.9			23.6			8.2			22.8			16.9
MOBILE		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenue		0		0		0		0		0		0		0			0			0			0.9			2.4			2.4			4.4
including Mobile Interconnect		0		0		0		0		0		0		0			0			0			0			0.2			0.3			0.6
Adjusted OIBDA		0		0		0		0		0		0		-0.2			-0.8			-1.6			-5.5			-7.5			-6.4			-5.9
Adjusted OIBDA, %		0		0		0		0		0		0		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Subscriptions (’000)		0		0		0		0		0		0		0			0			0			79	*		95	*		367			491
ARPU, US$		0		0		0		0		0		0		0			0			0			n/m			n/m			n/m			3.5
MOU, min		0		0		0		0		0		0		0			0			0			n/m			n/m			n/m			350.7
Churn 3 months active base (quarterly), %		0		0		0		0		0		0		0			0			0			n/m			n/m			n/m			n/m
FIXED		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Net operating revenue		0		0		0		0		0		0		0			0			0			0			0			0			0
including business segment		0		0		0		0		0		0		0			0			0			0			0			0			0
including wholesale segment		0		0		0		0		0		0		0			0			0			0			0			0			0
including residential segment		0		0		0		0		0		0		0			0			0			0			0			0			0
Adjusted OIBDA		0		0		0		0		0		0		0			0			0			0			0			0			0
Adjusted OIBDA, %		0		0		0		0		0		0		0			0			0			0			0			0			0
Broadband subscriptions ('000)		0		0		0		0		0		0		0			0			0			0			0			0			0
Reconciliation of OIBDA total		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009			Q1 2010
Adjusted OIBDA		0		0		0		0		0		0		(0.2	)		(0.8	)		(1.6	)		(5.5	)		(7.4	)		(6.4	)		(5.9	)
Depreciation		0		0		0		0		0		0		—			—			—			(0.3	)		(1.5	)		(2.4	)		(2.7	)
Amortization		—		—		—		—		0		0		—			—			—			(0.2	)		(0.5	)		(0.3	)		(0.4	)
Impairment loss		—		—		—		—		—		—		—			—			—			—			—			—			—
Operating income		0		0		0		0		0		0		(0.2	)		(0.8	)		(1.6	)		(6.0	)		(9.4	)		(9.1	)		(9.0	)
Interest income		0		0		0		0		0		0		—			—			—			—			—			—			—
Net foreign exchange gain/(loss)		0		0		0		0		0		0		—			—			—			—			—			—			0.1
Interest expense		0		0		0		0		0		0		—			(0.1	)		(0.3	)		(0.6	)		(1.4	)		(1.7	)		(1.8	)
Equity in net gain/(loss) of associates		0		0		0		0		0		0		0.0			1.8			3.1			(4.3	)		(6.7	)		(15.8	)		(5.9	)
Other (expense)/income, net		0		0		0		0		0		0		—			—			—			—			—			—			—
Income tax expense		0		0		0		0		0		0		—			—			—			—			—			—			—
Net income/(loss)		0		0		0		0		0		0		(0.2	)		0.9			1.2			(10.9	)		(17.5	)		(26.6	)		(16.6	)
Adjusted OIBDA margin total as a percentage of net operating revenue		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Depreciation		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Amortization		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Impairment loss		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Operating income		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Interest income		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Net foreign exchange gain/(loss)		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Interest expense		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Equity in net gain/(loss) of associates		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Other (expense)/income, net		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Income tax expense		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a
Net income/(loss)		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a			n/a

 

* In 2Q '09 and 3Q '09 we reported 79 and 95 thousands as active subscriptions in Cambodia which were calculated on a one month basis. Starting from 4Q09 we report active subscriptions base in Cambodia calculated on a three month basis.