VimpelCom Presentation of 3Q2004 Financial and Operating Results Presentation of 3Q2004 Financial and Operating Results November 18, 2004

VimpelComVimpelCom

Presentation of 3Q2004Financial and Operating Results

Presentation of 3Q2004Financial and Operating Results

November 18, 2004

2

Disclaimer

This presentation contains "forward-looking statements", as the phrase is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate, in part, to the Company’s development plans, such as national and international expansion. These statements also relate to the consummation of the merger between VimpelCom and each of VimpelCom-Region and KB Impuls, each of which is subject to certain conditions. If any of the conditions are not met, the merger will not be consummated. Furthermore, there are risks relating to such mergers due to the fact under Russian law, it appears that certain licenses and permissions should be issued after the consummation of the mergers, and it is possible that they may not be issued in a timely manner, or on the same terms as the existing licenses and permissions.The forward-looking statements are based on management's best assessment of the Company's strategic and financial position, future market conditions and trends and its ability to consummate the mergers and acquisition. These discussions involve risks and uncertainties. The actual outcome may differ materially from these statements as a result of unforeseen developments from regulatory authorities, competition, governmental regulations of the wireless telecommunications industry, general political and social uncertainties in Russia and Kazakhstan, general economic developments in Russia and Kazakhstan, the Company’s ability to continue to grow its overall subscriber base, continued volatility in the world economy and other factors. There can be no assurance that such risks and uncertainties will not have material adverse effects on the Company’s development plans. Certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risks described in the Company's Annual Report on Form 20-F for the year ended December 31, 2003 and other public filings made by the Company with the United States Securities and Exchange Commission, which risk factors are incorporated herein by reference. VimpelCom disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this presentation, or to make corrections to reflect future events or developments.

3

VimpelCom’s Strategy

‣ Increase loyalty, reduce churn

‣ Improve network quality perception

‣ Increase market share in business/Hi-value segment

‣ Stimulate traffic usage and up-sell / cross-sell VAS

‣ Capture organic growth

‣ Utilize unified business model:

Brand, tariffs and products Network rollout &

operations Customer Service IT, Billing and Reporting Organizational structure

‣ Apply tailored strategy for each region

Ensure cost efficiency

‣ Acquisition in Kazakhstan

‣ Selective acquisitions and green field opportunities in the CIS

‣ Industrial approach utilizing synergies with existing VimpelCom operations

Extract value from Win the regional Expansion outside existing operations growth game Russia

Become the leading wireless operator in Russia and the CIS

4

Operating Highlights

‣ 22.3 million subscribers as of November 18, 2004, including 725,500 in Kazakhstan

‣ Operations encompass 72 Russian regions, the largest number of any Russian cellular operator

‣ Leader in subscriber net additions in Russia‣ CIS expansion started with an acquisition of

KaR-Tel, a GSM operator in Kazakhstan‣ Strong financial results with the 3Q2004

OIBDA close to $300 million‣ Roaming available in 171 countries with

GPRS roaming available in 55 countries, one of the largest coverage in the world

5

National GSM network rollout

In commercial operation In commercial operation

Other licensed regions Other licensed regions Unlicensed territories Unlicensed territories

12

3

4

5

678

9

1011

12 13

1415

1617

18

192021

22

2324

25

26

27

2829

30

31

32

33

34

35

36

37

38

39

40

41

4243

44

45

46

47

48

49

5051

52

53

54

55

56

MoscowPopulation: 17.0 mln.MoscowPopulation: 17.0 mln.

CentralPopulation: 21.0 mln.CentralPopulation: 21.0 mln.

SouthPopulation: 22.9 mln.SouthPopulation: 22.9 mln.

VolgaPopulation: 25.2 mln.VolgaPopulation: 25.2 mln.

SiberiaPopulation: 15.3 mln.SiberiaPopulation: 15.3 mln.

Far EastPopulation: 11.4 mln.Far EastPopulation: 11.4 mln.

UralsPopulation: 18.3 mln.UralsPopulation: 18.3 mln.

NorthwestPopulation: 14.0 mln.NorthwestPopulation: 14.0 mln.

60

59

58

57

61

62 63

64

6566

70

67

68

69

71

72

6

National GSM network rollout (regions)

NetworkLaunch

NetworkLaunch

1.City of Moscow*2.Moscow Region*3.Voronezh4.Tver5.Kaluga6.Vladimir7.Ryazan8.Lipetsk9.Tula10.Yaroslavl11.Smolensk12.Belgorod13.N. Novgorod14.Saratov15.Rostov16.Barnaul17.Kemerovo

1.City of Moscow*2.Moscow Region*3.Voronezh4.Tver5.Kaluga6.Vladimir7.Ryazan8.Lipetsk9.Tula10.Yaroslavl11.Smolensk12.Belgorod13.N. Novgorod14.Saratov15.Rostov16.Barnaul17.Kemerovo

Jul 1999Jul 1999

May 2000Sep 2001Sep 2001Sep 2001Sep 2001Oct 2001Oct 2001Oct 2001Nov 2001Nov 2001Jan 2002Jan 2002Jan 2002Jan 2002Jan 2002

Jul 1999Jul 1999

May 2000Sep 2001Sep 2001Sep 2001Sep 2001Oct 2001Oct 2001Oct 2001Nov 2001Nov 2001Jan 2002Jan 2002Jan 2002Jan 2002Jan 2002

AreaArea SuperRegionSuperRegion

10,3586,6272,3791,4731,0411,5251,2281,2131,6761,3681,0501,5123,5242,6694,4072,6072,900

10,3586,6272,3791,4731,0411,5251,2281,2131,6761,3681,0501,5123,5242,6694,4072,6072,900

AreaPopul.(‘000)

AreaPopul.(‘000)

MLA *MLA *

CentralCentralCentralCentralCentralCentralCentralCentralCentralCentralVolgaVolgaSouthSiberiaSiberia

MLA *MLA *

CentralCentralCentralCentralCentralCentralCentralCentralCentralCentralVolgaVolgaSouthSiberiaSiberia

* Moscow license area

** Acquisitions

NetworkLaunch

NetworkLaunch

18. Novosibirsk19. Bryansk20. Kostroma21. Ivanovo22. Orenburg**23. Kursk24. Orel25. Omsk26. Kazan27. Tomsk28. Krasnodar29. Maykop30. Volgograd31. Ufa32. Cheboksary33. Nalchik34. Gorno- Altaysk

18. Novosibirsk19. Bryansk20. Kostroma21. Ivanovo22. Orenburg**23. Kursk24. Orel25. Omsk26. Kazan27. Tomsk28. Krasnodar29. Maykop30. Volgograd31. Ufa32. Cheboksary33. Nalchik34. Gorno- Altaysk

Jan 2002May 2002May 2002Jun 2002Jul 2002

Aug 2002Aug 2002Aug 2002Aug 2002Sep 2002Sep 2002Sep 2002Oct 2002Oct 2002Oct 2002Oct 2002Oct 2002

Jan 2002May 2002May 2002Jun 2002Jul 2002

Aug 2002Aug 2002Aug 2002Aug 2002Sep 2002Sep 2002Sep 2002Oct 2002Oct 2002Oct 2002Oct 2002Oct 2002


2,6921,379

7371,1492,1771,236

8612,0793,7801,0465,571

--2,7024,1031,314

900203

2,6921,379

7371,1492,1771,236

8612,0793,7801,0465,571

--2,7024,1031,314

900203

AreaPopul.(‘000)

AreaPopul.(‘000)

SiberiaCentralCentralCentralVolga

CentralCentralSiberiaVolga

SiberiaSouthSouthSouthVolgaVolgaSouthSiberia

SiberiaCentralCentralCentralVolga

CentralCentralSiberiaVolga

SiberiaSouthSouthSouthVolgaVolgaSouthSiberia

7

National GSM network rollout (regions)

NetworkLaunch

NetworkLaunch

35. Krasnoyarsk36. Samara37. Astrakhan38. Ulyanovsk39. Kaliningrad**40. Norilsk41. Makhachkala42. Stavropol**43. Cherkessk**44. St.Petersburg45. Tura46. Tambov47. Leningrad Reg.48. Ekatirinburg49. Novgorod50. Penza51. Yoshkar-Ola52. Chelyabinsk53. Tyumen54. Saransk55. Elista

35. Krasnoyarsk36. Samara37. Astrakhan38. Ulyanovsk39. Kaliningrad**40. Norilsk41. Makhachkala42. Stavropol**43. Cherkessk**44. St.Petersburg45. Tura46. Tambov47. Leningrad Reg.48. Ekatirinburg49. Novgorod50. Penza51. Yoshkar-Ola52. Chelyabinsk53. Tyumen54. Saransk55. Elista

Oct 2002Nov 2002Nov 2002Dec 2002Dec 2002Dec 2002Jan 2003Jan 2003Jan 2003

April 2003Aug 2003Oct 2003Oct 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003

Oct 2002Nov 2002Nov 2002Dec 2002Dec 2002Dec 2002Jan 2003Jan 2003Jan 2003

April 2003Aug 2003Oct 2003Oct 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003Dec 2003


2,9663,2401,0071,382

955135

2,5842,730

4404,669

181,1801,6714,490

6951,453

7283,6063,266

889292

2,9663,2401,0071,382

955135

2,5842,730

4404,669

181,1801,6714,490

6951,453

7283,6063,266

889292

AreaPopul.(‘000)

AreaPopul.(‘000)

SiberiaVolgaSouthVolga

North WSiberiaSouthSouth

South North WSiberiaCentralNorth W

UralNorth W

VolgaVolgaUralUral

VolgaSouth

SiberiaVolgaSouthVolga

North WSiberiaSouthSouth

South North WSiberiaCentralNorth W

UralNorth W

VolgaVolgaUralUral

VolgaSouth

** Acquisitions

NetworkLaunch

NetworkLaunch

56. Vladikavkaz57. Kurgan58. Pskov59. Petrozavodsk60 Vologda61. Izhevsk62. Blagovesch.**63. Khabarovsk**64.P-Kamchatsky**

65. Arkhangelsk66. Naryan-Mar67. Perm68. Kudymkar69. Abakan70. Murmansk71. Kirov72. Surgut

56. Vladikavkaz57. Kurgan58. Pskov59. Petrozavodsk60 Vologda61. Izhevsk62. Blagovesch.**63. Khabarovsk**64.P-Kamchatsky**

65. Arkhangelsk66. Naryan-Mar67. Perm68. Kudymkar69. Abakan70. Murmansk71. Kirov72. Surgut

Mar 2004Apr 2004Apr 2004Apr 2004May 2004Jun 2004Jun 2004Jun 2004Jun 2004July 2004July 2004Aug 2004Aug 2004Aug 2004Aug 2004Sep 2004Sep 2004

Mar 2004Apr 2004Apr 2004Apr 2004May 2004Jun 2004Jun 2004Jun 2004Jun 2004July 2004July 2004Aug 2004Aug 2004Aug 2004Aug 2004Sep 2004Sep 2004


7101,020

761717

1,2701,571

9031,435

3591,336

422,824

--546893

1,5041,433

7101,020

761717

1,2701,571

9031,435

3591,336

422,824

--546893

1,5041,433

AreaPopul.(‘000)

AreaPopul.(‘000)

SouthUral

North WNorth W North W

VolgaFar EastFar EastFar EastNorth WNorth W

VolgaVolga

SiberiaNorth W

VolgaUral

SouthUral

North WNorth W North W

VolgaFar EastFar EastFar EastNorth WNorth W

VolgaVolga

SiberiaNorth W

VolgaUral

8

5.08

4.18

5.66

5.78

6.04

7.33

6.18

10.12

6.65

13.22

3Q03 4Q03 1Q04 2Q04 3Q04

VimpelCom Subscriber Base, mln

Moscow Regions

5.08

4.18

5.66

5.78

6.04

7.33

6.18

10.12

6.65

13.22

3Q03 4Q03 1Q04 2Q04 3Q04

VimpelCom Subscriber Base, mln

Moscow Regions

VimpelCom Market Share

45%46%48%49%49%

34%33%32%31%31%

21%

28%25%23%

30%

0%

20%

40%

60%

3Q03 4Q03 1Q04 2Q04 3Q04

Moscow Russia Regions

VimpelCom Market Share

45%46%48%49%49%

34%33%32%31%31%

21%

28%25%23%

30%

0%

20%

40%

60%

3Q03 4Q03 1Q04 2Q04 3Q04

Moscow Russia Regions

Strong Subscriber Growth

Source: VimpelCom, independent sources

9.26

11.44

13.37

16.30

20.55

Including KaR-Tel’s 676,300

9

Strong Growth In Russian Regions

1,226

1,073

744824

316

1,616

1,458

1,166

1,030

496

2,023

1,830

1,494

1,267

61996

2,711

2,442

1,938

1,615

852240322

3,566

3,104

2,512

2,084

1,090479387

3Q03 4Q03 1Q04 2Q04 3Q04

VimpelCom Regional Subscriber Base, ('000)

Central Volga South Siberia

Northwest Ural Far East

1,226

1,073

744824

316

1,616

1,458

1,166

1,030

496

2,023

1,830

1,494

1,267

61996

2,711

2,442

1,938

1,615

852240322

3,566

3,104

2,512

2,084

1,090479387

3Q03 4Q03 1Q04 2Q04 3Q04

VimpelCom Regional Subscriber Base, ('000)

Central Volga South Siberia

Northwest Ural Far East

7,329

5,777

4,183

10,120

13,223

10

Note:BTS – base transceiver stationBSC – base station controllerMSC – mobile switching center

Network Rollout As Of Sept. 30, 2004

Source: VimpelCom

№ of BTSs 2 957 2 847 6 809 5 641 9 766 8 488

№ of BSCs 119 117 164 137 283 254

№ of MSCs 12 12 66 57 78 69

3Q2004 2Q2004 3Q2004 2Q2004 3Q2004 2Q2004

Moscow Regions Total

11

Key Subscriber Statistics

Moscow 6,646 5,076 31% 6,183 8% Contract 867 799 9% 844 3% Prepaid 5,779 4,277 35% 5,339 8%

Regions 13,223 4,183 216% 10,121 31%KaR-Tel 676 n/a -- n/a --

Total 20,545 9,259 122% 16,304 26% Contract 2,865 1,470 95% 2,160 33% Prepaid 17,680 7,789 127% 14,144 25%

Churn (quarterly) 7.2% 9.6% - 9.4% -

(‘000) 30 Sep 04 30 Sep 03 YtY 30 Jun 04 QtQ

12

Total operating revenues (US$,000) 10,759

Kazakhstan

Number of subscribers as of 676,300September 30, 2004Contract 580,600Prepaid 95,700

Net income (US$,000) 2,284

ARPU (US$) 16.3

MOU (min) 71.8

SAC (US$) 25.2

Key Financial and Operating Figures For the Period of September 3 – September 30, 2004

13

VimpelCom 3Q2004 Financial Highlights

379.0

602.4

3Q2003 3Q2004

Net Revenues, $ Million

379.0

602.4

3Q2003 3Q2004

Net Revenues, $ Million

72.2102.2

3Q2003 3Q2004

Net Income, $ Million

72.2102.2

3Q2003 3Q2004

Net Income, $ Million

41.6%41.6%

178.5

295.7

3Q2003 3Q2004

OIBDA, $ Million

178.5

295.7

3Q2003 3Q2004

OIBDA, $ Million65.7%65.7%

47.1%49.1%

3Q2003 3Q2004

OIBDA Margin

47.1%49.1%

3Q2003 3Q2004

OIBDA Margin

58.9%58.9%

Source: VimpelCom

14

Key Financial Figures

Net Revenues* 602.4 379.0 58.9% 490.9 22.7% Moscow* 313.8 259.7 20.8% 289.1 8.5% Regions* 277.8 119.3 132.9% 201.8 37.7% Kazakhstan* 10.8 n/a -- n/a -- Gross Margin 81.6% 81.8% -- 82.7% -- OIBDA 295.7 178.5 65.7% 244.7 20.8% OIBDA Margin 49.1% 47.1% -- 49.8% --

Net Income* 102.2 72.2 41.6% 91.0 12.3% Net Income Margin 17.0% 19.0% -- 18.5% -- Moscow 55.9 61.6 -9.3% 68.9 -18.9% Regions 75.2 17.9 320.1% 43.0 74.9% Kazakhstan 2.3 n/a -- n/a --

SG&A 192.5 126.9 51.7% 158.5 21.5% % of Net Revenues 32.0% 33.5% -- 32.3% --

D&A 85.7 51.8 65.4% 79.6 7.7% % of Net Revenues 14.2% 13.7% -- 16.2% --

Capex 346.5 165.3 109.6% 272.4 27.2%

($ mln) 3Q04 3Q03 YtY 2Q04 QtQ

* Net operating revenues and net income excluding inter-company transactions

15

Operational Indicators

ARPU, Blended ($) 10.7 14.4 -25.7% 10.8 -0.9%ARPU Moscow 16.0 17.5 -8.6% 15.2 5.3% Contract (Moscow) 56.6 53.6 5.6% 54.0 4.8% Prepaid (Moscow) 9.7 10.4 -6.7% 9.0 7.8%ARPU Regions 8.4 11.5 -27.0% 8.3 1.2%

MOU, Blended (min) 99.4 92.7 7.3% 96.3 3.2%MOU Moscow 123.7 92.5 33.7% 112.7 9.8% Contract (Moscow) 370.8 284.2 30.5% 364.1 1.8% Prepaid (Moscow) 85.2 54.7 55.8% 72.9 16.9%MOU Regions 86.7 93.0 -6.8% 84.5 2.6% SAC, Blended ($) 14.2 18.8 -24.5% 14.1 0.7% Moscow 25.4 27.0 -5.9% 23.4 8.5% Regions 10.8 12.3 -12.2% 11.0 -1.8%

3Q04 3Q03 YtY 2Q04 QtQ

16

Strong Balance Sheet

651

1,693

607

2,302

1,324

3,607

2002 2003 9M2004

Assets and Liabilities, $'000

Total Debt Total Assets

651

1,693

607

2,302

1,324

3,607

2002 2003 9M2004

Assets and Liabilities, $'000

Total Debt Total Assets

Cash and Cash Equivalents 189,044 157,611 263,657Total Assets 3,607,015 2,302,232 1,692,744 Total Debt 1,324,420 606,991 650,580 - Short-term 476,037 214,717 176,265 - Long-term 848,383 392,274 474,315Shareholder’s Equity 1,273,699 998,216 662,663 LTM OIBDA* 929,275 613,230 322,209 - LTM Depreciation and amortization * * 283,634 185,326 97,417 - LTM Operating income 645,641 427,904 224,792

LTM Interest 68,045 68,246 46,586

Debt/Equity 1.0 0.6 1.0 Debt/OIBDA * * * 1.4 1.0 2.0 OIBDA/Interest 13.7 9.0 6.9 Debt/Assets 0.4 0.3 0.4

($’000) 09/30/04 12/31/03 12/31/02

Source: VimpelCom

* LTM OIBDA constitutes the sum of the lines: LTM Operating income and LTM Depreciation and amortizationLTM stands for “last twelve months” to reporting date* * Includes Impairment of long-lived assets * * * In cases when OIBDA is part of financial ratios it is deemed to be calculated in accordance with thereconciliation tables herein

17

221.7

509.1 511.9

728.0699.2

1,028

2002 2003 30.09.2004, LTM

Net Operating Cash Flow/Capex, $ mln

Net Operating Cash Flow Capex

221.7

509.1 511.9

728.0699.2

1,028

2002 2003 30.09.2004, LTM

Net Operating Cash Flow/Capex, $ mln

Net Operating Cash Flow Capex

Net Operating Cash Flow vs CAPEX

* Net operating cash flow as % of Capex

43.5%*

70.3%*

68.0%*

18

Corporate Activities

‣Federal Agency on Communications granted VimpelCom 10 million telephone numbers since August 2004

‣Merger between VimpelCom and VimpelCom-R is planned to be completed by December 9, 2004

‣Merger between VimpelCom and KB Impuls is planned to be completed by year end of 2004

‣ADR to common share ratio change from 4:3 to 4:1 is effective November 22, 2004

19

Summary

‣ Ongoing rapid subscriber growth resulted in more than 22 million subscribers

‣ Overall market share in Russia has increased to 34%

‣ The Company has taken a strong lead in the subscriber acquisitions in the regions of Russia

‣ Strong financial results with the 3Q2004 OIBDA close to $300 million

‣ Acquisition of Kar-Tel, a Kazakh cellular operator, gives VimpelCom an important footprint in the richest country in the CIS outside Russia

Reconciliation tables of non-U.S. GAAP measures to their most directly comparable U.S. GAAP financial

measures

Reconciliation tables of non-U.S. GAAP measures to their most directly comparable U.S. GAAP financial

measures

21

Reconciliation of OIBDA and OIBDA margin

Reconciliation of VimpelCom OIBDA to operating income

OIBDA 295,663 178,472 742,382 426,337 Impairment loss -- -- (7,354) --

Depreciation (70,723) (42,894) (190,803) (108,486) Amortization (14,962) (8,871) (33,618) (24,981) Operating Income 209,978 126,707 510,607 292,870

(Three months ended) (Nine months ended)($ ‘000) Sep. 30, 2004 Sep. 30, 2003 Sep. 30, 2004 Sep. 30, 2003

Reconciliation of VimpelCom OIBDA margin to operating income as percentage of net operating revenuesOIBDA margin 49.1% 47.1% 49.1% 45.9% Impairment loss 0% 0% (0.5%) 0%

Depreciation as % of net operating revenues (11.7%) (11.3%) (12.6%) (11.6%)

Amortization as % of net operating revenues (2.5%) (2.4%) (2.2%) (2.7%)Operating income as %of net operating revenues 34.9% 33.4% 33.8% 31.6%

22

Reconciliation of OIBDA and OIBDA margin

Reconciliation of VimpelCom-Region OIBDA to operating income

OIBDA 135,032 49,788 297,818 98,421 Depreciation (22,899) (12,893) (60,709) (28,177) Amortization (5,710) (5,788) (18,482) (15,975) Operating Income 106,423 31,107 218,627 54,269


Reconciliation of VimpelCom-Region OIBDA margin to operating income as percentage of net operating revenuesOIBDA margin 47.8% 38.7% 44.1% 34.4% Depreciation as % of net operating revenues (8.1%) (10.0%) (9.0%) (9.9%)

Amortization as % of net operating revenues (2.0%) (4.5%) (2.7%) (5.6%)Operating income as %of net operating revenues 37.7% 24.2% 32.4% 19.0%

23

Reconciliation of ARPU

Reconciliation of ARPU to service revenue and connection fees

Service revenue and connection fees US$ 583,278 US$ 359,815 US$ 1,456,989 US$ 880,340

Less: Connection fees 191 361 527 1,077 Less: Revenue from rent of fiber-optic channels 408 308 1,261 958 Service revenue used to calculate ARPU 582,679 359,146 1,455,201 878,305

Average number of subscribers, ‘000 18,184 8,305 15,042 6,906 ARPU per month (US$) 10.7 14.4 10.7 14.1


24

Reconciliation of SAC

Reconciliation of SAC to selling, general and administrative expensesSelling, general and administrative expenses 192,513 126,860 489,063 318,891 Less: General and admin.

expenses 122,913 77,220 313,025 199,337 Sales and marketing expenses, including 69,600 49,640 176,038 119,554 advertising & marketing expenses 16,780 11,668 46,493 34,631 dealers’ commission expenses 52,820 37,972 129,545 84,923

New gross subs, ‘000 4,894 2,641 11,861 5,974

SAC (US$) 14.2 18.8 14.8 20.0


Documents

VimpelCom Presentation of 3Q2004 Financial and Operating Results Presentation of 3Q2004 Financial and Operating Results November 18, 2004