1 vimpelcom - april 2003 7th year of nyse listing vimpelcom: april 2003 valery goldin vice...

1VimpelCom - April 2003

7th year of NYSE listingVIMPELCOM:

April 2003

Valery GoldinVice President, International and Investor Relations


Company profile

Second largest national cellular operator in Russia GSM license portfolio covering 137 million people 52% market share in Moscow and 28% in Russia Six-fold increase in subscriber base over the last 24 month

First Russian company with NYSE listing 50% of common stock is in free float US$2.0 billion market cap (as of April 16, 2003)

Benchmark for transparency and corporate governance in Russia

Strategic alliances with Telenor and Alfa Group

Strong financial performance

$, mln 4Q02 4Q01 , %

Net Revenue 229.0 134.1 70.8%

EBITDA 84.6 43.8 93.4%

Net Income 39.1 18.8 107.4%

0

1

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 27.3.03

Regions

Moscow license area

VimpelCom subscriber base (mln)

2000 2001 2002


Company story

VimpelComfounded

1st AMPS network

launched in Moscow

Sep92

Jun94

Sep94

Nov96

May99

July99

Jul00

May01

Mar01

Jan02

Upgradeto DAMPS

Listing on the NYSE

Closure of transaction with Telenor

Commercial launch of

BeeLine GSM 900/1800

network in Moscow

$225 mln public

offering

Return to profitability

Strategic alliance with Alfa Group

&1 mln

subscribers

Number 1in Moscow

&2 mln

subscribers

Apr02

$250 mlnbond

placement

5 mln subscribers

Dec02

38 regional networks in commercial operation


Shareholder Structure

* As of March 3, 2003

Common stock Preferred stock Total voting shares % of voting shares

Telenor 11,689,713 - 11,689,713 25% + 13 shares

Alfa 5,263,102 6,426,600 11,689,702 25% + two shares

Free float 20,373,080 - 20,373,080 43.6%

Other 3,006,306 - 3,006,306 6.4%

Total 40,332,201 6,426,600 46,758,801 100%

Shareholder


Complementary strategic partners

25% strategic partner since December 1998

One of the largest strategic foreign investors in the Russian telecom sector

The leading telecom company in Norway, operating in the following business areas: mobile and fixed line communications, broadband services, and Internet

Transfer of key management, as well as technical, operational and marketing expertise and support

25% strategic partner since May 2001

One of the largest and most diversified financial and industrial groups in Russia

Proven record of successful regional business development

Dominant position in its key industries (oil, banking, retail, insurance)

Committed to the development of a nationwide telecom presence


VimpelCom Founders

Dr. Dmitri B. Zimin Founder, Honorary President

Augie K. Fabela II Co-Founder, Chairman Emeritus


1996 $111 M Initial public offering

1997 $114 M Secondary offering

1999 $164 M Telenor Investment

2000 $225 M Equity and Convertible Bond Offering

2001 $103 M Alfa Investment

2002 $117 M Alfa and Telenor investment in VimpelCom-R

$250 M International Bond Offering

VimpelCom’s Fund Raising Activities

TOTAL: $1,084 M


Activities To Comply With Corporate Governance Requirements

Detailed documented analysis by the Board of all related party transactions

Detailed description of all items on the agenda of AGM/EGM with explanation of shareholder rights (no discretionary rights for management)

Earnings releases and conference calls made quarterly

Publication of press releases on all material issues

Publication of annual reports

Filings of Form 20-F reports (annually)

Regular contacts with shareholders and industry analysts


Market capitalization

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1996 1997 1998 1999 2000 2001 2002

US$ m.


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Nominal GDP (US$bn) GDP per capita (US$) (rhs)

Russian GDP Annual inflation and official ruble exchange rate

Source: RECEP, Nov 2002 & consensus estimates

Russian economy growth set to continue

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янв.98 янв.99 янв.00 янв.01 янв.02

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Inf lation, % Exchange rate, EOP1998 1999 2000 2001 2002E

Inflation, % Rub/$

Monthly income per capita$ Rub

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Income per capita, $ Income per capita, Rub

1998 2000 2001 20021999


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Russia Moscow Turkey Poland CzechRep.

Hungary

2002 2005F

Subscriber Growth in Russia

Wireless growth expected to continue

Emerging Europe Cellular Penetration

Source: Consensus forecasts

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2000 2001 2002 2003E 2004E 2005E

Moscow Regions

mln


The strategy for 2003 and beyond

Build national GSM network

Accelerate growth of non-voice and data

services

Continue revenue andsubscriber growth in

Moscow

Regional growth, enhanced profitability and leadership

Increase market share of corporate and higher ARPU subscribers

Continue development of the pre-paid product

Continue emphasis on service quality and innovation

Focus on profitability as the key to increasing shareholder value

Focus on loyalty and retention of subscriber base

Balanced and controlled development in all six super-regions

Secure licenses for the last remaining not licensed super region – the Far East

Unified business model:

Traditional VAS services

Messaging (SMS, MMS, UMS)

Infotainment (CPA)

Mobile Internet

E/M-Commerce

Corporate and high-end solutions

Brand, tariffs and products Network rollout & operations Customer Service IT, Billing and Reporting Organizational structure


Significant milestones of 2002

2 mln subscribers


Number 1in Moscow

Jan Feb Mar Apr May Jun Jul SepAug Oct Nov Dec

Launch of new billing system

$250 mlnbond placement

3 mln subscribers

Over 400K subs in the regions

Orensot acquisition


License for the North-West

4 mln subscribers

Stake in Beeline-Samara raised to controlling

$175.44 mln investment in VIP-R

5 mln subscribers

Extel & Vostok-Zapad Telecom acquisitionLicense for the Urals


Over 1mln subs in the regions


Main Russian GSM players

Market share in Moscow as of Dec 31, 2002 Market share in Russia as of Dec 31, 2002

Source: www.sotovik.ru, January 04, 2003

MTS MegafonVimpelCom

Megafon 5%

Others1%

MTS42%

VimpelCom52%

Megafon 17%

Others19%

MTS36%

VimpelCom28%


VimpelCom national GSM network rollout

SouthPopulation: 17.7 mln

Moscow Population: 15.2 mln

VolgaPopulation: 24.1 mln

CentralPopulation: 26.0 mln

SiberiaPopulation: 15.9 mln

1

2

3

45

6

7

8

910

11

12

1314

15

1617

20 1918

2223

2426

25

21

North-WestPopulation: 13.7 mln

2728

29 30

31

32

- other licensed regions - in commercial operation - launch in 2003E

33

34

35

36

39

37

UralsPopulation: 24.3 mln

38

40

4142

AreaSuper Region

Area popul. ('000)

Network Launch /

Acquisition1 Moscow Central 15,200 Jul 19992 Voronezh Central 2,500 May 20003 Tver Central 1,650 Sep 20014 Kaluga Central 1,100 Sep 20015 Vladimir Central 1,650 Sep 20016 Ryazan Central 1,330 Sep 20017 Lipetsk Central 1,250 Oct 20018 Tula Central 1,815 Oct 20019 Yaroslavl Central 1,450 Oct 2001

10 Smolensk Central 1,173 Nov 200111 Belgorod Central 1,450 Nov 200112 N. Novgorod Volga 3,730 Jan 200213 Saratov Volga 2,740 Jan 200214 Rostov South 4,425 Jan 200215 Barnaul Siberia 2,670 Jan 200216 Kemerovo Siberia 3,177 Jan 200217 Novosibirsk Siberia 2,750 Jan 200218 Bryansk Central 1,425 May 200219 Kostroma Central 780 May 200220 Ivanovo Central 1,266 Jun 200221 Orenburg Urals 2,200 Jul 200222 Kursk Central 1,316 Aug 200223 Orel Central 899 Aug 200224 Omsk Siberia 2,163 Aug 200225 Kazan Volga 4,117 Aug 200226 Tomsk Siberia 1,067 Sep 200227 Krasnodar South Sep 200228 Maykop South Sep 200229 Volgograd South 2,679 Oct 200230 Ufa Volga 4,117 Oct 200231 Cheboksary Volga 1,360 Oct 200232 Nalchick South 790 Oct 200233 Gorno-Altaysk Siberia 204 Oct 200234 Krasnoyarsk Siberia 3,032 Oct 200235 Samara Volga 3,312 Nov 200236 Astrakhan South 1,015 Nov 200237 Ulyanovsk Volga 1,454 Dec 200238 Kaliningrad North W 947 Dec 200239 Norilsk Siberia 201 Dec 200240 Makhachkala South 2,120 Jan 200341 Stavropol South 2,700 Feb 200342 Cherkessk South 434 Feb 2003

Total 94,716

5,058


2002 financial highlights

35.1%

41.9%

2001

2002

Source: VimpelCom data

Revenue, $ mln Net Income, $ mln

EBITDA, $ mln EBITDA Margin

422.6768.5

2001 2002

81.8%

129.6

47.3

2001 2002

173.9%

148.5322.2

2001 2002

117.0%


-100

-60

-20

20

60

100

140

1997 1998 1999 2000 2001 2002

-50%

-30%

-10%

10%

30%

50%

Net income/loss Net income/loss margin (rhs)

Net operating revenues and ARPU

EBITDA Net income/loss

VimpelCom’s growing revenues and margins

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EBITDA EBITDA margin (rhs)

mln $ mln $$ % mln $ %


Strong balance sheet

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1997 1998 1999 2000 2001 2002

Total assets Total debt

Assets and Liabilities ($ million)(US$000) Dec 31, 2001 Dec 31, 2002

Cash and cash equivalents 145 092 263 657

Short-term bank debt 17 852 37 780

Short term equipment financing 72 498 134 617

Long-term bank debt, bonds 131 127 391 991

Long term equipmenr financing 56 196 81 425

Sberbank Loan

Total debt 277 673 645 813Shareholders equity 508 121 662 663

Total assets 925 806 1 692 744

LTM Interest 26 865 46 586

LTM EBITDA 148 456 322 209

Debt / Equity 0,5 1,0

Debt / EBITDA (LTM) 1,9 2,0

EBITDA / Interest 5,5 6,9

Debt / Assets 0,3 0,4


Disclaimer

Except for historical information, some of the matters discussed in this presentation, such as VimpelCom's strategy and anticipated growth of the regional mobile telecommunications market in Russia, contain forward-looking statements and are subject to certain risks and uncertainties that could differ materially from those projected. Other risks that may affect VimpelCom are identified in VimpelCom's Form 20-F and other filings with the U.S. Securities and Exchange Commission.

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