Form 6-K

6-K 1 d6k.htm FORM 6-K Form 6-K

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 September 2011

Commission File Number 1-34694

VimpelCom Ltd.

(Translation of registrant’s name into English)

SOM 2 Bld., Floor 2, Claude Debussylaan 15, 1082 MC, Amsterdam, the Netherlands

(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- .

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.

VIMPELCOM LTD.

(Registrant)

Date: September 7, 2011


By:		/s/ Jeffrey David McGhie
Name:		Jeffrey David McGhie
Title:		General Counsel

LOGO

VIMPELCOM DELIVERS SOLID REVENUE AND SUBSCRIBER GROWTH IN 2Q11

INTERIM DIVIDEND 2011 OF USD 0.45 PER SHARE

KEY RESULTS AND DEVELOPMENTS*

— Total mobile subscriber base increased 11% YoY, reaching 193 million

— Pro forma revenue increased 9% YoY to USD 6.0 billion

— Pro forma EBITDA stable YoY at USD 2.4 billion

— Solid performance across Business Units, highlighted by continued subscriber growth in Russia, market outperformance in Italy and profitable growth in emerging markets

— Strong cash flow generation and long-term financing in place

— Interim dividend 2011 of USD 0.45 per common share (ADS) outstanding

Amsterdam (September 7, 2011) - “VimpelCom Ltd” (“VimpelCom”, “Company” or “Group”) (NYSE: VIP), a leading global provider of telecommunications services, today announced operating and financial results for the quarter ended June 30, 2011.

JO LUNDER, CHIEF EXECUTIVE OFFICER COMMENTS:

“This quarter in which our transformational merger with Wind Telecom closed, shows solid performance across all of our Business Units. Our diligent efforts resulted in an improvement in our market position in Russia, relative outperformance of the market in Italy, and continued profitable growth across our operations in emerging markets. Moreover, we are leveraging our scale advantage, which is reflected by our ability to deliver synergies from the merger with Kyivstar ahead of expectations. And, although we are early in the process of integrating Wind Telecom, our confidence in significant synergies from our enlarged company is reaffirmed.”

“Looking ahead, we will maintain our focus on integrating our businesses and driving sustainable, profitable growth and increased cash flows by capturing opportunities in our emerging markets and by increasing focus on both fixed and mobile broadband in our more mature markets.”

“I am confident that we have a strong platform for improvement and for sustainable profitable growth.”

CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS^*


USD mln	Actual						Pro forma
	2Q11		2Q10		YoY		2Q11		2Q10		YoY
Net operating revenues		5,532		2,642		109%		6,008		5,488		9%
EBITDA		2,184		1,260		73%		2,371		2,368		-
EBITDA margin		39.5%		47.7%				39.5%		43.1%
Net income attributable to VimpelCom Ltd.		239		335		-29%		312		219		42%
EPS, basic (USD)		0.16		0.28		-43%		0.19		0.14		36%
Capital expenditures		1,016		381		167%		1,027		728		41%
Net cash from operating activities		1,231		1,001		23%		-		-		-
Net debt / LTM EBITDA		-		0.9		-		2.6		-		-
Total mobile subscribers (‘000)		192,742		89,372		116%		192,742		174,420		11%

*See definitions in Attachment E. Actual second quarter 2011 results reflect the consolidation of Wind Telecom as of April 15, 2011 and actual second quarter 2010 results reflected consolidation of Kyivstar as of April 22, 2010. For pro forma definition see next page.

LOGO

STRATEGIC PROGRESS

—

Closed acquisition of Wind Telecom on April 15

—

Strengthened presence in Far East of Russia through acquisition of NTC and new 2G licenses

—

Announced Jo Lunder as new CEO

INTEGRATION UPDATE

—

Launched integration of Wind Telecom immediately following the close of the transaction

—

Expected synergies of at least NPV USD 2.5 billion from the integration of Wind Telecom reaffirmed

—

Synergies from the merger with Kyivstar are ahead of plan; since inception NPV USD 120 million realized

—

Implemented new organizational structure with 5 Business Units

The highlight of the second quarter was the closing of the transformational merger with Wind Telecom, which elevated VimpelCom to a position as one of the leading global telecommunications operators in the world with an attractive and balanced portfolio in both developed and emerging markets. The Company has significant advantages in terms of scale, sharing of best practices across the organization, and ability to capture the next phase of growth in the industry from the paradigm shift from voice to data. Furthermore, the leadership team is focused on executing these priorities, both at the Group level, as well as at the business units. The strengthening of our position in the Far East of Russia is a significant addition to the coverage in the Russian market.

Following the closing of the merger with Wind Telecom, the Company launched a comprehensive integration program to capture the benefits of the combination and to achieve the expected synergies from the enlarged group. The first results from the program are promising, with early savings in procurement already achieved through harmonization of current price levels across the Company. Savings are also being realized through benchmarking of costs and sharing of best practices. Phase 1 initiatives have already secured synergies in the amount of USD 1.6 billion on a NPV basis. Also the integration program in Ukraine continues to progress ahead of plan, with synergies of NPV USD 120 million realized since inception.

A new organizational structure has been implemented with five Business Units reporting to the Headquarters in Amsterdam.

PRESENTATION OF FINANCIAL RESULTS

Actual second quarter 2011 results reflect the consolidation of Wind Telecom as of April 15, 2011. The Company believes pro forma comparisons provide the most meaningful comparison of financial performance for the quarter and, unless otherwise stated, all comparisons in this press release are on a pro forma basis. For further details about the adjustments and assumptions of our pro forma results, please refer to VimpelCom’s press release issued on August 18, 2011 and available on our website.

The pro forma information presented in this press release reflects what the Company’s results of operations would have looked like had the Company’s transactions with Wind Telecom and Kyivstar occurred on January 1, 2010.

VimpelCom Ltd. consolidated results presented in this earnings release are based on US GAAP. The results of Business Units Europe & North America and Asia & Africa, excluding SEA, are based on IFRS. The correction to US GAAP of these business units has been made at Group level.

Certain amounts and percentages that appear in this earnings release have been subject to rounding adjustments. As a result, certain numerical figures shown as totals, including in tables, may not be exact arithmetic aggregations of the figures that precede or follow them.

LOGO

VIMPELCOM GROUP – FINANCIAL AND OPERATING RESULTS

— Total mobile subscriber base increased by 11% YoY to 193 million

— Revenues up 9% YoY to USD 6.0 billion driven by 3% organic growth and favorable forex

— EBITDA stable at USD 2.4 billion

— Net income increased 42% to USD 312 million

— CAPEX at USD 1.0 billion, LTM capex/revenue 20%

— Actual net cash from operating activities was USD 1.2 billion, 23% higher than a year ago

— Net debt / LTM EBITDA was 2.6x at the end of the second quarter

OPERATING PERFORMANCE OVERVIEW

The total mobile subscriber base increased by 11% YoY to 193 million, with the largest absolute contribution coming from the accelerated growth in subscribers in Russia. The Company also achieved strong growth of broadband and mobile data in Russia, Italy and Ukraine.

In Russia, the Company had the highest net additions of mobile subscribers in the market during the first 6 months of 2011. The subscriber growth rate increased twofold over the first quarter of 2011 with more than 2 million additional subscribers. Mobile broadband subscribers increased by 82% YoY to 2.3 million and fixed broadband subscribers grew 39% YoY to 1.7 million.

In the Business Unit Europe and North America, the Company’s Italian business continued to outperform the broader telecom market in the second quarter despite the ongoing weak macroeconomic environment and unfavorable regulatory developments. VimpelCom strengthened its market position in both mobile and fixed-line, increasing the market share in both segments. The fixed broadband subscriber base increased 18% YoY to

2.1 million, while Mobile Internet revenues increased 33% YoY.

In the Business Unit Africa and Asia, the Company achieved strong growth in its subscriber base across all countries of operation, reaching over 74 million in total. Improved performance was driven primarily by increased usage of voice traffic and focus on cost optimization.

The Business Unit Ukraine delivered stable growth in mobile subscribers, strong improvements in fixed residential broadband, and increased mobile data usage. Mobile data revenue grew 48% YoY to UAH 190 million driven by increased usage of data services in USB modem offers and within the new bundled tariff plans.

The CIS Business Unit continued to demonstrate strong operational results despite intensified competition in some key CIS countries, due to the improving macroeconomic situation in the region, product quality and efficient sales and marketing efforts. In the Company’s largest CIS market, Kazakhstan, VimpelCom achieved subscriber growth of 24% YoY.

OPERATING FINANCIALS PER BUSINESS UNIT


USD mln		Pro forma						Pro forma
		2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net operating revenues			6,008		5,488		9%		11,489		10,677		8%
	of which:
	BU Russia		2,329		2,042		14%		4,394		3,961		11%
	BU Europe & North America		2,015		1,829		10%		3,878		3,646		6%
	BU Africa & Asia		949		901		5%		1,840		1,748		5%
	BU Ukraine		412		387		6%		787		745		6%
	BU CIS		389		336		16%		740		631		17%
	Other		-86		-7				-150		-54

EBITDA			2,371		2,368		0%		4,628		4,583		1%
	of which:
	BU Russia		968		963		1%		1,836		1,874		-2%
	BU Europe & North America		664		669		-1%		1,314		1,304		1%
	BU Africa & Asia		407		377		8%		811		748		8%
	BU Ukraine		226		208		9%		429		382		12%
	BU CIS		175		161		9%		334		300		11%
	Other		-69		-10				-96		-25

EBITDA margin			39.5%		43.1%				40.3%		42.9%

*See definitions in Attachment E.

LOGO

FINANCIAL PERFORMANCE OVERVIEW

Total net operating revenues in the second quarter 2011 increased by 9% YoY, with strong performance across all business units and favorable foreign exchange movements. In Russia, revenues increased by 14% in USD terms and 6% in local currency. In Italy, revenues in USD increased by 10%, while in local currency, excluding certain one off items in the same period a year ago, revenues increased by 1%. Business Unit Ukraine delivered growth of 6% in USD terms and 7% in local currency. Business Unit Africa and Asia reported revenue growth of 5%. Lastly, CIS continued to achieve strong performance with a revenue increase of 16%, driven primarily by a quality product offering, efficient sales and marketing efforts, and an improving macroeconomic situation.

The EBITDA of 2Q11 was impacted by one off expenses related to the Wind Telecom and GTEL transactions. Excluding these effects the pro forma EBITDA would have increased by 3%.

Net income increased by 42% YoY, as a result of favorable currency movements partly offset by increased depreciation and tax expenses. The increase in our tax expenses is mainly attributable to certain net operating losses not recognized.

CAPEX increased 41% to 1.0 billion US dollars. This is within our planned 21% CAPEX to revenue range for the year, and mainly reflects slow phasing of investments in Russia and the CIS last year. On a Last Twelve Months basis, 2Q11 CAPEX/Revenue is broadly in line with full year 2010 of 18% capex to revenues.

ACTUAL 2Q 2011

On an actual basis, revenues more than doubled YoY and EBITDA increased by 73% YoY, as a result of the combination with Wind Telecom in April this year.

Net income declined by 29%, mainly due to higher interest expenses, resulting from higher gross debt after the acquisition of Wind Telecom. In addition, net income was also negatively impacted by higher depreciation and amortization charges associated with the Wind Telecom transaction.


USD mln	Actual						Pro forma
	2Q11		2Q10		YoY		2Q11		2Q10		YoY
Net operating revenues		5,532		2,642		109%		6,008		5,488		9%
EBITDA		2,184		1,260		73%		2,371		2,368		-
EBITDA margin		39.5%		47.7%				39.5%		43.1%
Net income attributable to VimpelCom Ltd.		239		335		-29%		312		219		42%
EPS, basic (USD)		0.16		0.28		-43%		0.19		0.14		36%
Capital expenditures		1,016		381		167%		1,027		728		41%

STATEMENT OF FINANCIAL POSITION
USD mln							Actual
							2Q11		FY10
Total assets								58,873		19,928
Shareholders’ equity								16,111		10,671
Gross debt								27,392		5,661
Net debt								24,104		4,740

The total assets almost tripled to USD 59 billion, primarily as a result of the acquisition of Wind Telecom in April, 2011. As a consequence of the acquisition gross debt increased to USD 27.4 billion, in line with the estimated preliminary pro forma gross debt as of the end of the first quarter of 2011. Net debt was USD 24.1 billion, slightly higher than the estimated preliminary pro forma net debt as of the end of the first quarter, leading to a small increase in the Net debt / LTM EBITDA to 2.6x at the end of the second quarter.

LOGO

CASH FLOWS


USD mln	Actual						Actual
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net cash from operating activities		1,231		1,001		23%		2,235		1,804		24%
Net cash used in/(from) investing activities		1,010		-67				2,205		-75
Net cash used in/(provided) financing activities		-948		191				-2,079		928

The net cash from operating activities at the Group level was positively impacted by the strong cash flow generation from our operating activities offset by certain cash costs in relation to the acquisition of Wind Telecom. The net cash from investing activities was mainly impacted by higher investments in property and equipment and investments related to the Wind Telecom transaction. Net cash from financing activities was related to the repayment of the bridge loan associated with the acquisition of Wind Telecom, refinanced with the successful USD 2.2 billion bonds issued in the Eurobond market in June. Funds from VimpelCom were also used to refinance all outstanding indebtedness at Orascom Telecom Holding.

INTERIM DIVIDEND 2011

The Supervisory Board declared the payment of an interim dividend of USD 0.45 per American depositary share (“ADS”) in relation to the 2011 results. Each ADS represents one common share. The total interim dividend payment will be approximately USD 733 million.

The record date for the Company’s shareholders entitled to receive the interim dividend has been set for December 1, 2011. The ex-dividend date is November 29, 2011. The Company will make appropriate tax withholdings of up to 15% when the dividend is paid to the Company’s ADS depositary, The Bank of New York Mellon. The dividend will be paid by the Company before December 31, 2011.

MAIN SECOND QUARTER EVENTS

Completion of the combination with Wind Telecom establishing an enhanced platform for global growth

Payment of a final dividend for 2010 in the amount of USD 244 million giving a total of USD 1.1 billion in dividends paid relating to 2010 results

Agreement on further financing of operations in Vietnam

Acquisition of NTC, a mobile operator in the Far East of Russia, improving the license footprint in the region

Appointment of Jo Lunder as CEO and announcement of key management positions

Election of the new Supervisory Board and Co-Founder Augie Fabela II as Chairman

Successful placement of USD 2.2 billion in Eurobond market

LOGO

BUSINESS UNITS PERFORMANCE

— Russia

— Europe and North America

— Africa and Asia

— Ukraine

— CIS

LOGO

BUSINESS UNIT RUSSIA – FINANCIAL AND OPERATING RESULTS

— Improved market position, with more than 2 million mobile net additions

— Strengthened presence in Far East of Russia through acquisition of NTC and new 2G licenses

— Strong growth of fixed broadband and continued expansion of IPTV

— Solid growth of mobile data subscribers and increased data ARPUs

In Russia, we continued to execute our development plan, which we adopted a year ago, aimed at enhancing our market position. We improved the trends of our mobile subscription and service revenue market share, and accelerated the development of the fixed-line segment. We intend to maintain this momentum. Our development plan puts pressure on our margins, and we are taking measures to improve profitability by offsetting the effects of the recent active investments and network development with operational efficiency.

For two quarters in a row we have achieved the highest net additions in Russia, accelerating subscriber growth to more than 2 million net additional mobile subscribers in 2Q11, a twofold increase in growth in comparison to 1Q11.

Total consolidated 2Q11 revenues reached 65.2 billion rubles, up 6% YoY, driven by growth in fixed and mobile revenues including sales of devices.

Mobile data revenues increased 38% YoY to 4.1 billion rubles. Our total number of mobile broadband subscribers (USB only) was 2.4 million, up 82% YoY.

Fixed-line broadband revenues were nearly 1.9 billion rubles, growing by 45% YoY, supported by strong growth in subscribers, which were up 39% YoY and positive ARPU performance, which increased by 7% versus last year. During the quarter, IPTV service was launched in 8 cities, bringing the total number of cities serviced to 32 as of the end of 2Q11.

Total consolidated 2Q11 EBITDA declined to 27.1 billion rubles and the EBITDA margin declined to 41.5%, reflecting the Company’s intensified network development and increased sales and marketing expenses aimed at strengthening our market position.

We developed and launched a business excellence program aimed at enhancing the Company’s profitability. This program will focus on an increase in efficiency of operations and will target annual cost reductions related to network maintenance expenses, rental costs, commissions and other G&A expenses.

Capex increased by 54% YoY, reflecting the acceleration of network development and improved phasing of capex throughout the year.


RUSSIA KEY INDICATORS
RUR mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net operating revenues		65,179		61,738		6%		125,513		119,087		5%
Total operating expenditures		38,103		32,624		17%		73,042		62,737		16%
EBITDA		27,076		29,114		-7%		52,471		56,350		-7%
EBITDA margin		41.5%		47.2%				41.8%		47.3%
Capex		11,348		7,363		54%		20,834		11,073		88%
Capex / revenues		17%		12%				17%		9%

Mobile
Mobile net operating revenues		54,360		51,825		5%		104,427		99,707		5%
- of which mobile data		4,118		2,994		38%		8,000		6,203		29%
Mobile EBITDA		24,069		26,437		-9%		46,831		50,960		-8%
Mobile EBITDA margin		44.3%		51.0%				44.8%		51.1%
Mobile subscribers (‘000)		55,251		50,912		9%
- of which mobile broadband (‘000)		2,362		1,300		82%
Mobile ARPU (RUR)		327		330		-1%
MOU		244		219		11%

Fixed-line
Fixed-line net operating revenues		10,818		9,913		9%		21,085		19,381		9%
Fixed-line EBITDA		3,007		2,677		12%		5,640		5,389		5%
Fixed-line EBITDA margin		27.8%		27.0%				26.7%		27.8%
Fixed-line broadband revenues		1,855		1,283		45%		3,590		2,596		38%
Fixed line broadband subscribers (‘000)		1,671		1,199		39%
Fixed line broadband ARPU (RUR)		384		359		7%

LOGO

BUSINESS UNIT EUROPE & NORTH AMERICA

FINANCIAL AND OPERATING RESULTS ITALY

— Continued relative outperformance in the Italian market

— Solid growth of fixed broadband coupled with an increase in ARPU

— Strong growth of mobile Internet revenues, up 33% to EUR 56 million

— Total revenues increased 1% excluding non organic items, decline 1% YoY on a reported basis

— EBITDA in line with previous year on an organic basis (net of non-recurring items), declines 5% YoY on a reported basis

In Italy we strengthened our market position in both mobile and fixed-line, increasing market share in both segments. In the mobile segment, performance was driven by the ongoing success of the Company’s targeted offerings for voice and messaging, both on-net and off-net, by the strong take-up of its post-paid offerings targeted at the high value consumer and SME/SOHO segments, and by the notable success of its Mobile Internet offerings for smartphones and tablet devices. In the fixed-line segment, performance was particularly strong in the consumer segment, which posted a 6.3% increase in revenues driven by the Company’s simple and transparent set of offerings, which are easily adaptable to all customer needs and are supported by a highly effective promotional and advertising strategy.

WIND’s total revenues reached EUR 1.4 billion in the second quarter, driven by a 1% increase in telecom service revenues.

EBITDA declined YoY as a result of certain non organic items recorded in 2Q10 (mainly settlements with other operators, active penalties and release of previous years over accrued provisions), combined with an increase in monthly access fees on Local Loop Unbundling (LLU) paid to the incumbent operator and by an increase in bad debt in the fixed-line business. On an organic basis WIND’s EBITDA in the second quarter was in line with the same quarter a year ago. The EBITDA margin remained a solid 37.6%.

During the second quarter of 2011, WIND continued to deliver on its investment plan with EUR 234 million of capex invested in: i.) increasing the coverage of its 3G / HSDPA mobile footprint and in increasing the capacity of the mobile network; ii.) in the expansion of LLU coverage; and iii.) in the increase of capacity and quality of WIND’s backbone, which serves both the mobile and fixed-line businesses.


ITALY KEY INDICATORS
Euro mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Revenues		1,399		1,411		-1%		2,750		2,706		2%
Total operating expenditures		(873)		(856)		2%		-1,727		-1,668		4%
EBITDA		526		556		-5%		1,022		1,039		-2%
EBITDA margin		37.6%		39.4%				37.2%		38.4%
Capex		234		203		15%		380		331		15%
Capex / revenues		17%		14%				14%		12%

Mobile
Total revenues		1,029		1,046		-2%		2,011		1,983		1%
EBITDA		455		477		-5%		886		894		-1%
EBITDA margin		44.2%		45.6%				44.1%		45.1%
Subscribers (‘000)		20,559		19,263		7%
ARPU (€)		16.0		17.2		-7%
MOU		198		185		7%

Fixed
Total revenues		370		366		1%		739		723		2%
EBITDA		71		79		-10%		136		145		-6%
EBITDA margin (%)		19.2%		21.6%				18.4%		20.0%
Total voice subscribers (‘000)		3,128		2,904		8%
Total fixed-line ARPU (€)		33.4		34.8		-4%
Broadband subscribers (‘000)		2,082		1,765		18%
Broadband ARPU (€)		19.2		18.4		5%
Dual-play subscribers (‘000)		1,689		1,450		17%

Financials are based on IFRS

LOGO

The performance of WIND’s mobile business remained positive in the second quarter with a 7% increase in subscribers, reaching 20.6 million, reflecting 280 thousand net additions in 2Q11.

WIND’s mobile data offerings continued to post strong results driven by the significant increase in mobile Internet revenues, up 33% over the previous year to EUR 56 million, and supported by the ongoing solid revenue growth posted by traditional data services.

WIND’s mobile ARPU in 2Q11 declined 7% over the same period last year, as a result of the cut in mobile termination rates coupled with the strong growth in data-only SIM cards, which do not generate voice revenues. Net of these impacts, the decline would have been approximately 3%. Mobile Data ARPU in 2Q11 reached 21% of total mobile ARPU.

In fixed-line our voice subscribers increased by 8% to 3 million customers, mainly as a result of a 12% increase in higher value direct voice subscribers, which reached 2.4 million. Our performance in broadband was also particularly strong with an 18% growth in customer

base to over 2.1 million. Finally in the dual-play market Infostrada grew its customer base by 16% to almost 1.7 million.

Fixed-line Internet and Data revenue growth was solid in the second quarter, delivering an 18% increase over the previous year, mainly driven by the 25% increase in broadband revenues only marginally offset by the decline in narrowband Internet services.

Fixed voice ARPU declined over the same period last year as a result of the cut in fixed termination rates coupled with a decrease in usage due to fixed-mobile substitution. Notwithstanding the intense competitive environment, which abated slightly in 2Q11, Infostrada was able to increase its Broadband ARPU by 5% to EUR 19.2.

CANADA

—

Active subscriber base increased significantly

—

Solid share of net additions drove growth to 317 thousand active subscribers

Globalive Wireless Management Corporation, operating under the brand name Wind Mobile in Canada, is accounted for under the equity method and therefore we only disclose operational information in the quarterly earnings release.

WIND Mobile’s active subscriber base increased by 239% YoY to 317 thousand active subscribers, reinforcing its solid share of net additions despite a climate of increased competition and seasonal mild growth rates.

CANADA KEY INDICATORS

Mobile

2Q11

2Q10

YoY

Subscribers (‘000)

317

239%

ARPU (CAD)

27.8

n.a.

LOGO

BUSINESS UNIT AFRICA & ASIA - FINANCIAL AND OPERATING RESULTS

— Subscriber base surpassed the 74 million mark

— Net operating revenues increased 5% YoY

— EBITDA grew 8% YoY, reflecting revenue growth and focus on cost optimization

— Strong EBITDA margin of 42.9%

In the second quarter of 2011, net operating revenues in Africa and Asia increased by 5% YoY driven by strong subscriber growth across our countries. Total subscribers grew by 12% to 74 million. EBITDA increased by 8%, as a result of management’s continued focus on cost optimization, leading to a strong EBITDA margin of 42.9%.

ALGERIA (“DJEZZY”)

Revenue performance improved with a 5% YoY increase, despite a challenging operating and regulatory environment. However, revenue growth was affected by the limitations imposed on Djezzy. EBITDA increased 11% compared to the same quarter last year as a result of the aforementioned revenue increase coupled with tight cost management, which drove a strong EBITDA margin of 59.2%. The decrease in capex was mainly due to limitations on importing goods. Subscribers increased 5% YoY to 16 million, due to a continued focus on successful churn management. ARPU remained stable compared to the same quarter last year at DZD 711 as a result of careful acquisition of customers and efficient use of promotions. Market share remained stable at 58%, as a result of successful churn management and special loyalty programs.

PAKISTAN (“MOBILINK”)

Subscribers exceeded 33 million, increasing by 4% compared to the same quarter last year as a result of targeting new subscribers through location-based promotions, as well as a continuing focus on mobile number portability. Revenues showed stable growth YoY, increasing 2% mainly as a result of a growing customer base, which was partially offset by a decrease in pre-paid average rate per minute as a result of competitive pressures. EBITDA displayed a corresponding increase of 2% as a result of applied cost efficiency measures. These kept EBITDA margin stable at 40.2%. Capex increased 37% to support IT and network development. We continue to focus on the youth segment through dedicated products and offerings, as well as rolling out a number of activities to promote value added services

BANGLADESH (“BANGLALINK”)

Subscriber growth was strong, increasing almost 26% YoY to 20.2 million as a result of penetration in rural areas and in the younger lower end market segments. Revenues increased by nearly 17% YoY as a result of a growing customer base, as well as the launch of promotions and tariff amendments. EBITDA displayed a sharp increase of 85% YoY due to selective subscriber acquisition through the removal of SIM tax subsidies during most of the second quarter in anticipation of a reduction in the SIM tax. As expected, the government reduced the SIM tax by Tk194 at the end of the second quarter. Capex decreased by 67% when compared to the aggressive rollout plan in the previous year.

SUB SAHARAN AFRICA (“TELECEL GLOBE”)

Subscribers increased 24%, however revenues showed a 2% decline YoY mainly due to significant competitive pressures in Burundi as well as to the country-wide economic slowdown in the Central African Republic (CAR). EBITDA decreased 68% YoY as a result of higher subscriber acquisition costs and offerings to counter competition in both highly competitive markets.

SOUTH EAST ASIA

The subscriber base increased by 279% YoY, reaching 2 million. In Vietnam, we developed a more focused strategy with a planned comprehensive commercial re-launch of our operations. Cambodia showed strong YoY growth in both revenues (up 50% YoY) and subscribers (up 56% YoY). In Laos, plans are in place to rebrand to Beeline.


AFRICA & ASIA KEY INDICATORS
USD mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Revenues		949		901		5%		1,840		1,748		5%
Total operating expenditures		542		524		3%		1,029		1,000		3%
EBITDA		407		377		8%		811		748		8%
EBITDA margin		42.9%		41.8%				44.1%		42.8%
Capex		97		94		3%		173		245		-29%
Capex / revenues		10%		10%				9%		14%

For details per country unit please see Attachment B

LOGO

BUSINESS UNIT UKRAINE – FINANCIAL AND OPERATING RESULTS

— Ukraine continued to deliver stable growth in mobile subscribers and revenues

— Strong growth in fixed residential broadband

— Improved operating margins through synergy realization and cost control

Overall, Kyivstar continued to deliver solid results in the second quarter with a strong revenue growth, driven by an increase in the subscriber base and ARPU, increased mobile data usage, and a growing fixed broadband business that almost doubled in revenue YoY. At the same time, Kyivstar has managed to improve operating margins due to lower mobile termination rates, realized synergies ahead of plan, and effective cost control.

Total revenue increased 7% YoY, mainly driven by growth in mobile revenue as our subscriber base increased 3% YoY to 24.7 million and ARPU increased 3.3% YoY to UAH 41. This growth was largely due to our continued transition towards new bundled tariff plans that stimulated an 11% increase in MOU.

Mobile data revenue grew 48% YoY to UAH 190 million driven by increased usage of data services in USB modem offers and within the new bundled tariff plans.

Fixed revenue showed 23% growth YoY due to an increase in wholesale revenues, as well as an 87%

increase in fixed-line broadband revenues as a result of a 174% increase in fixed-line broadband subscribers, which reached 293,000 in the quarter. In April, the FTTB subscription base was revised for the period of the first quarter of 2010 through the first quarter of 2011 based on the VimpelCom definition for broadband subscribers to reflect 3-months active base.

EBITDA was up 9% YoY with EBITDA margin improving to 54.8% YoY on the back of higher revenues, higher mobile gross margin due to lower mobile termination rates, realized synergies ahead of plan, and effective cost control.

Capex was UAH 463 million, or 14% of revenue, which is below plan due to mobile equipment delivery delays and improved pricing terms.

The integration program in Ukraine continues to progress ahead of plan, with synergies of NPV USD 120 million realized since inception.

UKRAINE KEY INDICATORS


UAH mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net operating revenues		3,287		3,071		7%		6,267		5,925		6%
Total operating expenditures		1,485		1,425		4%		2,856		2,886		-1%
EBITDA		1,802		1,646		9%		3,411		3,040		12%
EBITDA margin		54.8%		53.6%				54.4%		51.3%
Capex		463		538		-14%		832		1,018		-18%
Capex / revenues		14%		18%				13%		17%

Mobile
Mobile net operating revenues		3,042		2,871		6%		5,808		5,533		5%
Mobile subscribers (‘000)		24,695		24,059		3%
Mobile ARPU (UAH)		41.0		39.7		3%
MOU		474		427		11%

Fixed-line
Fixed-line net operating revenues		245		200		23%		459		392		17%
Fixed-line broadband revenues		36		19		87%		68		37		86%
Fixed-line broadband subscribers (‘000)		293		107		174%
Fixed-line broadband ARPU (UAH)		46.2		65.5		-29%

LOGO

BUSINESS UNIT CIS* – FINANCIAL AND OPERATING RESULTS

— Continued strong growth in revenues and subscribers

— Increased usage of voice and data traffic

— Successful rollout of 2G and 3G networks

Overall, the CIS business continues to deliver strong operational and financial results. Despite intensified competition in some of the CIS countries, revenues are growing at double-digit rates YoY in nearly all CIS markets as a result of the improving macroeconomic situation, product quality and efficient sales and marketing efforts.

Comprehensive data strategy execution drove record revenue growth of 83% YoY in data services.

EBITDA increased 9% in absolute terms YoY, but

EBITDA margin declined by 2.9 p.p. to 45%, primarily due to lower EBITDA in Kazakhstan

We substantially increased CAPEX related to mobile and fixed network expansion in the second quarter in order to support further growth in the CIS markets.

We maintained our efforts to enhance market position in all CIS markets, despite continuous and intensified competition in key markets.

KAZAKHSTAN

In our largest CIS market, Kazakhstan, we achieved mobile subscriber growth of 24% YoY and solid revenue growth of 9% in the second quarter.

EBITDA margin declined to 48.8%, primarily due to intensified competition in Kazakhstan, increasing volume of customer equipment sales, and higher sales and marketing expenses. EBITDA margin was also impacted by per second-rounding and mandatory cancelling of call set up fees in Kazakhstan, introduced by the national regulator in February 2011.

ARMENIA

In 2Q11 our revenues in Armenia increased by 2% YoY driven by organic growth as well as device sales. The decline in traditional fixed voice revenues was not fully compensated by the solid growth of fixed broadband revenues. To support data consumption in both mobile and fixed segment we accelerated customer devices sales that led to EBITDA margin erosion.

UZBEKISTAN

In Uzbekistan, our sales and marketing efforts resulted in a 34% increase in the number of mobile subscribers as compared with the second quarter of 2010. Our revenues have increased by 28% YoY with strong EBITDA margin of 42.9% demonstrating the underlying strength of our core

business in the country. CAPEX grew by 42% YoY mainly to accelerate 3G network development to support data growth.

TAJIKISTAN

In 2Q11 we recorded YoY revenue growth of 29%. The EBITDA margin reached 51.9% up from 33.3% we reported a year ago. We attribute these strong results to our prudent marketing policy as well as to the high margin incoming traffic from Russia to our subscribers in Tajikistan.

GEORGIA

In 2Q11 our revenues in Georgia increased 21% YoY with substantial improvement of EBITDA margin which increased to 23.9% from 14.4% reported a year ago.

Our strong sales and marketing activities resulted in 53% growth of our mobile subscriber base YoY along with substantial increase in usage.

KYRGYZSTAN

In Kyrgyzstan we managed to strengthen our market position in 2Q11 and also all key financial and operating indicators. Strong growth of mobile subscriber base, reflected in a revenue increase of 27% and a solid EBITDA margin of 52.8%, which is the highest across all CIS countries.

CIS KEY INDICATORS


USD mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net operating revenues		389		336		16%		740		631		17%
Total operating expenditures		214		175		22%		440		297		48%
EBITDA		175		161		9%		334		300		11%
EBITDA margin		45.0%		47.9%				45.2%		47.6%
Capex		132		71		87%		205		103		99%
Capex / revenues		34%		21%				28%		16%

Mobile
Mobile subscribers (‘000)		17,594		13,875		27%		17,594		13,875		27%
- of which mobile broadband (‘000)		124		17		626%		124		17		626%
Fixed-line
Fixed-line broadband subscribers (‘000)		132		65		103%		132		65		103%
FTTB Subscribers		19		5		263%		19		5		263%
Fixed-line broadband revenues		7		3		154%		12		5		135%

* CIS operations include operations in Kazakhstan, Uzbekistan, Armenia, Kyrgyzstan (since the first quarter of 2010), Tajikistan, and Georgia.

For details per country unit please see Attachment B

LOGO

CONFERENCE CALL INFORMATION

The Company’s management will discuss second quarter 2011 results during a conference call and slide presentation on September 7, 2011 at 9:30 am CET (3:30 am US ET) for Europe-based shareholders and analysts, and 3:00 pm CET (9:00 am US ET) for the US-based shareholders and analysts. The call and slide presentation may be accessed at http://www.vimpelcom.com


9:30 am CET (3:30 am US ET) conference call		3:00 pm CET (9:00 am US ET) conference call
US call-in number:	+1 877 616-4476	US call-in number:	+1 877 616-4476
International call-in number:	+1 402 875-4763	International call-in number:	+1 402 875-4763


The conference calls replay and the slide presentations webcast will be available through September 14, 2011 and October 7, 2011, respectively. The slide presentation will also be available for download on the Company’s website.
9:30 am CET (3:30 am US ET) replay		3:00 pm CET (9:00 am US ET) replay
US replay number:	+1 855 859-2056	US Replay number:	+1 855 859-2056
Confirmation code:	95884159	Confirmation code:	95889150

International replay:	+1 404 537-3406	International replay:	+1 404 537-3406
Confirmation code:	95884159	Confirmation code:	95889150

CONTACT INFORMATION

INVESTOR RELATIONS

Gerbrand Nijman

Investor_Relations@vimpelcom.com

Tel: +31 20 79 77 200 (Amsterdam)

Marine Babayan

Russia, Ukraine and CIS

Investor_Relations@vimpelcom.com

Tel: +7 495 974 5888 (Moscow)

Stefano Songini

Europe & North America and Fixed Income

ir@mail.wind.it

Tel +39 06 83113099 (Rome)

Noha Khalil

Africa & Asia and Orascom Telecom

otinvestorrelations@otelecom.com

Tel: +202 2461 5050 / 51 (Cairo)

MEDIA AND PUBLIC RELATIONS

Elena Prokhorova

pr@vimpelcom.com

Tel: +7(495)725-0705 (Moscow)

LOGO

DISCLAIMER

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 and synergies from the Company’s transaction with Wind Telecom and the expected growth and development of the Company’s operations. 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 Wind Telecom, its Ukrainian operations and other newly-acquired businesses, if the Company is unable to complete the demerger of certain Wind Telecom assets and other factors. In addition, there are risks related to the combination with Wind Telecom, including the possibility that the anticipated benefits of the combination may not materialize as expected; that the parties are unable to successfully implement integration strategies or otherwise realize the synergies anticipated for the transaction; the possibility that Telenor may succeed in the arbitration against the Company and Altimo Holdings and Investments Ltd. or bring other legal challenge (including requests for injunctive relief) against the Company, its officers or directors and/or Altimo in respect of its claims to pre-emptive rights or otherwise; and other risks and uncertainties that are beyond the parties’ control. There can be 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 Annual Report on Form 20-F for the year ended December 31, 2010 and other public filings made by the Company with the SEC, which risk factors are incorporated herein by reference. The Company 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.

ABOUT VIMPELCOM LTD

VimpelCom is one of the world’s largest integrated telecommunications services operators offering a wide range of wireless, fixed, and broadband services in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Vietnam, Cambodia, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic, Italy and Canada. VimpelCom’s operations around the globe cover territory with a total population of approximately 864 million people. VimpelCom provides services under the “Beeline”, “Kyivstar”, “djuice”, “Wind”, “Infostrada” “Mobilink”, “Leo”, “banglalink”, “Telecel”, and “Djezzy” brands. As of June 30, 2011 VimpelCom had 193 million mobile subscribers on a combined basis. VimpelCom is traded on the New York Stock Exchange under the symbol (VIP). For more information visit: http://www.vimpelcom.com.

LOGO

CONTENT OF THE ATTACHMENT TABLES


Attachment A	VimpelCom Ltd Financial Statements	16

Attachment B	Country units key indicators CIS and Asia & Africa	19

Attachment C	Reconciliation Tables	22
	Average Rates of Functional Currencies to USD

Attachment D	Wind Italy condensed financial statement of income	24

Attachment E	Definitions	25

For more information on financial and operating data for specific countries, please refer to the supplementary file FactbookQ22011.xls on our website at http://vimpelcom.com/ir/financials/results.wbp

LOGO

ATTACHMENT A: VIMPELCOM LTD FINANCIAL STATEMENTS

VIMPELCOM LTD UNAUDITED CONSOLIDATED STATEMENTS OF INCOME


	USD (000)	Three months ended June 30				Six months ended June 30
		2011		2010		2011		2010


Operating revenues
	Service revenues		5,394,292		2,584,855		8,067,431		4,787,484
	Sales of equipment and accessories		134,263		44,539		200,396		71,118
	Other revenues		3,643		12,240		7,231		14,160

	Net operating revenues		5,532,199		2,641,634		8,275,059		4,872,762

Operating expenses
	Service costs		1,381,076		553,022		2,006,248		1,054,610
	Cost of equipment and accessories		146,153		47,879		228,561		74,229
	Selling, general and administrative expenses		1,773,538		766,416		2,586,459		1,409,713
	Depreciation		829,493		376,648		1,304,925		729,201
	Amortization		291,928		116,544		392,595		183,238
	Impairment loss		-		-		-		-
	Provision for doubtful accounts		40,017		12,485		52,925		31,129

	Total operating expenses		4,462,204		1,872,994		6,571,712		3,482,120


	Operating income		1,069,995		768,640		1,703,347		1,390,642

Other income and expenses
	Interest income		19,751		16,079		34,810		27,625
	Net foreign exchange gain/(loss)		(25,833)		(126,393)		113,697		(21,459)

	Interest expense		(468,919)		(132,264)		(603,855)		(273,924)
	Equity in net gain/(loss) of associates		(9,396)		11,088		46,192		7,304
	Other expenses, net		(106,504)		(10,011)		(111,778)		(58,356)

	Total other income and expenses		(590,901)		(241,501)		(520,934)		(318,810)


	Income before income taxes		479,094		527,139		1,182,413		1,071,832

	Income tax expense		206,515		177,958		301,125		331,007


	Net income from continuing operations		272,579		349,181		881,288		740,825

	Profit from discontinued operations		3,397		-		3,397		-


	Net income/(loss)		275,977		349,181		884,686		740,825

	Net income attributable to the noncontrolling interest		36,822		14,441		55,858		24,607


	Net income attributable to VimpelCom		239,155		334,740		828,828		716,218


	Basic EPS :
	Net income attributable to VimpelCom* per common share		0.16		0.28		0.59		0.65

	Weighted average common shares outstanding (thousand)		1,564,135		1,227,320		1,428,845		1,121,394

	Diluted EPS :
	Net income attributable to VimpelCom* per common share		0.16		0.28		0.59		0.65

	Weighted average diluted shares (thousand)		1,564,275		1,227,780		1,428,871		1,121,991

*Adjusted for the impact through changes in redeemable noncontrolling interest

LOGO

ATTACHMENT A: VIMPELCOM LTD FINANCIAL STATEMENTS

VIMPELCOM LTD UNAUDITED CONSOLIDATED BALANCE SHEETS


	USD (000)	June 30, 2011		December 31, 2010

Assets
	Current assets:
	Cash and cash equivalents		3,190,214		885,125
	Trade accounts receivable, net of allowance for doubtful accounts		2,725,943		506,322
	Inventory		315,689		137,413
	Deferred income taxes		94,164		117,236
	Input value added tax		159,963		137,958
	Due from related parties		96,840		87,151
	Short-term bank deposits		63,143		34,305
	Other current assets		2,379,186		383,964
	Assets held for sale		1,526,237		-

	Total current assets		10,551,378		2,289,474

	Property and equipment, net		15,183,944		6,935,287
	Telecommunications licenses, net		3,488,752		562,931
	Goodwill		18,238,118		7,003,714
	Other intangible assets, net		7,561,820		1,481,800
	Software, net		1,034,869		627,330
	Investments in associates		1,279,688		446,130
	Due from related party		8,539		4,905
	Other non-current assets		1,525,752		576,324

	Total assets		58,872,861		19,927,895

Liabilities, redeemable non-controlling interest and equity
	Current liabilities:
	Accounts payable		4,149,840		963,450
	Due to employees		267,488		108,050
	Due to related parties		22,367		5,634
	Accrued liabilities		1,323,825		212,323
	Taxes payable		764,492		233,848
	Customer advances, net of VAT		855,987		452,055
	Customer deposits		66,933		33,835
	Deferred income taxes		24,001		50,313
	Short-term debt		1,636,640		1,162,444
	Liabilities associated to assets held for sale		770,000		-

	Total current liabilities		9,881,574		3,221,952

	Deferred income taxes		2,414,396		688,206
	Long-term debt		25,755,792		4,498,861
	Other non-current liabilities		1,787,038		184,133

	Total liabilities		39,838,800		8,593,152

	Redeemable noncontrolling interest		528,855		522,076
Equity
	Convertible voting preferred stock (0.001 US$ nominal value per share), 433,532,000 shares authorized; 433,532,000 shares issued and outstanding		434		129
	Common stock (0.001 US$ nominal value per share), 2,630,639,827 shares authorized; 1,628,199,135 shares issued (December 31, 2010: 1,302,559,308); 1,618,120,527 shares outstanding (December 31, 2010: 1,292,050,700 )		1,628		1,303
	Ordinary stock (0.001 US$ nominal value per share), 50,000,000 shares authorized; nil shares issued and outstanding		-		-
	Additional paid-in capital		11,042,875		6,292,269
	Retained earnings		5,483,596		5,153,819
	Accumulated other comprehensive loss		(198,152)		(561,154)
	Treasury stock, at cost, 10,078,608 shares of common stock (December 31, 2010: 10,508,608)		(219,463)		(215,763)

	Total VimpelCom shareholders’ equity		16,110,918		10,670,603

	Noncontrolling interest		2,394,288		142,064

	Total equity		18,505,206		10,812,667
	Total liabilities, redeemable noncontrolling interest and equity		58,872,861		19,927,895

ATTACHMENT A: VIMPELCOM LTD FINANCIAL STATEMENTS

VIMPELCOM LTD UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	USD (000)	Six months ended June 30,
		2011		2010


Operating activities

	Net cash provided by operating activities		2,235,411		1,804,243
			-
Investing activities
	Purchases of property and equipment		(1,363,017)		(380,308)
	Purchases of intangible assets		(13,737)		(11,298)
	Purchases of software		(104,314)		(88,587)
	Proceeds from sale of property, plant and equipment		58,035		1,396
	Acquisition of subsidiaries, net of cash acquired		(929,717)		171,878
	Receipts from associates		12,500		-
	Loan granted		-		(5,048)
	Net flow from disposal of financial instruments		183,085		377,044
	Loans receivable repayment / (granted)		(31,662)		22,910
	Purchases of other assets, net		(15,892)		(13,216)

	Net cash (used in)/provided by investing activities		(2,204,718)		74,771
			-
Financing activities			-
	Proceeds from bank and other loans		8,455,010		270,254
	Repayments of bank and other loans		(5,806,544)		(1,158,204)
	Payments of fees in respect of debt issues		(64,658)		(1,847)
	Purchase of noncontrolling interest in consolidated subsidiaries		(3,775)		(2,294)
	Payment of dividends		(500,397)		(2,049)
	Payment of dividends to noncontrolling interest		-		(34,517)
	Other (payments)/receipts, net		(198)		932
	Net cash (used in)/from financing activities		2,079,439		(927,725)
			-
	Effect of exchange rate changes on cash and cash equivalents		49,670		(45,690)

	Cash and cash equivalents of discontinued operations and assets held for sale at the end of the period		145,369		-

	Net (decrease)/increase in cash and cash equivalents		2,305,171		905,599
	Cash and cash equivalents at beginning of period		885,125		1,446,949
	Cash and cash equivalents at end of period		3,190,214		2,352,548

		Six months ended June 30,
		2011		2010


Supplemental cash flow information
	Non-cash activities:
	Accounts payable for property, equipment and other long-lived assets		847,695		214,485

LOGO

ATTACHMENT B: COUNTRY UNITS KEY INDICATORS

AFRICA AND ASIA BUSINESS UNIT: COUNTRY DETAIL

ALGERIA


DZD bln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Revenues		34		33		5%		66		63		5%
EBITDA		20		18		11%		39		35		11%
EBITDA margin		59.2%		56.4%				59.3%		56.2%
Capex (USD mln)		10		n.a.		n.a.		14		45		-69%
Capex / revenues (USD)		2%		n.a.		n.a.		2%		5%		-3%

Mobile
Subscribers (‘000)		15,964		15,142		5%
ARPU		711		711		0%
MOU		296		279		6%

PAKISTAN
PKR bln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Revenues		25		24		2%		48		47		2%
EBITDA		10		10		2%		20		19		4%
EBITDA margin		40.2%		40.2%				40.4%		39.6%
Capex (USD mln)		52		38		37%		97		62		56%
Capex / revenues (USD)		18%		13%		5%		17%		11%		6%

Mobile
Subscribers (‘000)		33,378		32,203		4%
ARPU		243		247		-2%
MOU		213		210		1%

BANGLADESH
BDT bln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Revenues		9		8		17%		18		15		23%
EBITDA		4		2		85%		7		5		41%
EBITDA margin		42.6%		27.1%				39.2%		34.4%
Capex (USD mln)		14		43		-67%		27		102		-74%
Capex / revenues (USD)		11%		38%		-27%		11%		48%		-37%

Mobile
Subscribers (‘000)		20,203		16,097		26%
ARPU		153		172		-11%
MOU		211		237		-11%

SUB SAHARAN AFRICA (TELECEL GLOBE)
USD mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Revenues		24		25		-2%		49		49		0%
EBITDA		2		6		-68%		6		9		-34%
EBITDA margin		7.5%		23.2%				12.6%		19.1%

Mobile
Subscribers (‘000)		2,789		2,250		24%

SEA (CONSOLIDATED)
USD mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Revenues		18		6		223%		28		10		181%
EBITDA		-37		-8		n.a.		-41		-17		n.a.
EBITDA margin		n.a.		n.a.				n.a.		n.a.

Mobile
Subscribers (‘000)		1,993		525		279%

LOGO

CIS BUSINESS UNIT: COUNTRY DETAIL


KAZAKHSTAN KZT mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net operating revenues		29,530		27,054		9%		56,380		50,609		11%
EBITDA		14,414		15,449		-7%		28,028		28,470		-2%
EBITDA margin		48.8%		57.1%				49.7%		56.3%
Capex (USD mln)		68		26		164%		79		32		148%
Capex / revenues (USD)		34%		14%				20%		9%

Mobile
Subscribers (‘000)		7,831		6,339		24%
ARPU (KZT)		1,249		1,411		-11%
MOU		144		125		15%
ARMENIA AMD mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net operating revenues		17,490		17,073		2%		34,380		33,089		4%
EBITDA		6,699		7,193		-7%		12,392		14,555		-15%
EBITDA margin		38.3%		42.1%				36.0%		44.0%
Capex (USD mln)		6		4		63%		15		7		117%
Capex / revenues (USD)		13%		9%				16%		8%

Mobile
Subscribers (‘000)		733		567		29%
ARPU (AMD)		3,089		3,975		-22%
MOU		263		270		-3%
UZBEKISTAN USD mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net operating revenues		66		51		28%		125		97		29%
EBITDA		28		20		42%		55		40		39%
EBITDA margin		42.9%		38.9%				44.2%		41.0%
Capex (USD mln)		27		29		-7%		66		46		42%
Capex / revenues (USD)		40%		55%				53%		48%

Mobile
Subscribers (‘000)		5,347		3,997		34%
ARPU (USD)		4.0		4.1		-2%
MOU		413		383		8%
TAJIKISTAN USD mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net operating revenues		26		20		29%		47		35		33%
EBITDA		14		7		101%		23		11		105%
EBITDA margin		51.9%		33.3%				48.8%		31.8%
Capex (USD mln)		7		4		109%		11		4		194%
Capex / revenues (USD)		28%		17%				23%		10%

Mobile
Subscribers (‘000)		870		784		11%
ARPU (USD)		9.4		6.1		54%
MOU		234		168		39%

LOGO


GEORGIA GEL mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net operating revenues		25		21		21%		46		40		16%
EBITDA		6		3		100%		10		5		100%
EBITDA margin		23.9%		14.4%				21.6%		12.6%
Capex (USD mln)		9		9		-4%		16		13		18%
Capex / revenues (USD)		56%		77%				58%		59%

Mobile
Subscribers (‘000)		712		466		53%
ARPU (GEL)		11.4		14.5		-21%
MOU		224		141		59%
KYRGYZSTAN KGS mln
	2Q11		2Q10		YoY		YTD11		YTD10		YoY
Net operating revenues		1,603		1,261		27%		3,048		2,399		27%
EBITDA		847		589		44%		1,656		1,015		63%
EBITDA margin		52.8%		46.7%				54.3%		42.3%
Capex (USD mln)		15		0.2		nm		19		1		nm
Capex / revenues (USD)		43%		1%				29%		2%

Mobile
Subscribers (‘000)		2,102		1,722		22%
ARPU (KGS)		261		240		9%
MOU		319		236		35%

LOGO

ATTACHMENT C: RECONCILIATION TABLES

RECONCILIATION OF CONSOLIDATED EBITDA OF VIMPELCOM*


USD mln	Pro forma
	2Q11		2Q10		YTD 2011		YTD 2010


EBITDA		2,371		2,368		4,628		4,583

Adjustment for certain non-operating items		8		3		10		5
Depreciation		(892)		(722)		(1,731)		(1,474)
Amortization		(342)		(379)		(700)		(765)
Impairment loss				(9)		23		(15)

Operating income		1,145		1,260		2,230		2,333

Adjustment for certain non-operating items		(8)		(3)		(10)		(5)

EBIT		1,137		1,257		2,220		2,329

Financial income and expenses		(486)		(448)		(971)		(1,028)
- including interest income		38		66		74		95
- including interest expense		(524)		(514)		(1,045)		(1,123)
Net foreign exchange (loss)/gain and others		(120)		(493)		77		(416)
- including net foreign exchange (loss)/gain		1		(299)		210		(199)

- including equity in net (loss)/gain of associates		(14)		(22)		12		(61)
- including other (expense)/income, net		(114)		(175)		(155)		(162)
- including adjustment for certain non-operating items		8		3		10		5

EBT		531		316		1,327		884

Income tax expense		(226)		(170)		(418)		(425)

Profit (loss) from discontinued operations		-		-		-		-

Net income		305		146		909		458

Net (loss)/income attributable to the noncontrolling interest		(7)		(73)		33		(42)

Net Income attributable to VimpelCom Ltd.		312		219		875		501

*See also the supplementary file FactbookQ22011.xls on our website at http://vimpelcom.com/ir/financials/results.wbp

LOGO

ATTACHMENT C: RECONCILIATION TABLES

RECONCILIATION OF CONSOLIDATED EBITDA OF VIMPELCOM* (CONTINUED)


USD mln	Actual
	2Q11		2Q10		YTD 2011		YTD 2010


EBITDA		2,184		1,260		3,391		2,300

Adjustment for certain non-operating items		8		2		10		3
Depreciation		(829)		(377)		(1,305)		(729)
Amortization		(292)		(117)		(393)		(183)
Impairment loss				-				-

Operating income		1,070		769		1,703		1,391

Adjustment for certain non-operating items		(8)		(2)		(10)		(3)

EBIT		1,062		766		1,693		1,388

Financial income and expenses		(449)		(116)		(569)		(246)
- including interest income		20		16		35		28
- including interest expense		(469)		(132)		(604)		(274)
Net foreign exchange (loss)/gain and others		(134)		(123)		58		(70)
- including net foreign exchange (loss)/gain		(26)		(126)		114		(21)

- including equity in net (loss)/gain of associates		(9)		11		46		7
- including other (expense)/income, net		(107)		(10)		(112)		(58)
- including adjustment for certain non-operating items		8		2		10		3

EBT		479		527		1,182		1,072

Income tax expense		(207)		(178)		(301)		(331)

Profit (loss) from discontinued operations		3		-		3		-

Net income		276		349		885		741

Net (loss)/income attributable to the noncontrolling interest		37		14		56		25

Net Income attributable to VimpelCom Ltd.		239		335		829		716

*See also the supplementary file FactbookQ22011.xls on our website at http://vimpelcom.com/ir/financials/results.wbp

LOGO

ATTACHMENT C: RECONCILIATION TABLES

RECONCILIATION OF VIMPELCOM CONSOLIDATED NET DEBT


USD mln	2Q10		3Q10		4Q10		1Q11		2Q11
Net debt		3,865		3,970		4,740		4,840		24,104
Cash and cash equivalents		(2,353)		(2,467)		(885)		(1,858)		(3,190)
Long - term and short-term deposits		(115)		(56)		(36)		(592)		(99)
Long - term debt		4,801		4,367		4,499		6,047		25,756
Short-term debt		1,532		2,126		1,162		1,243		1,637

AVERAGE RATES OF FUNCTIONAL CURRENCIES TO USD*


	Average rates						Closing rates
	YTD11		YTD10		YoY		YTD11		FY2010		Delta
Russian Ruble		28.62		30.07		5.1%		28.08		30.48		8.5%
Euro		1.40		1.32		-6.2%		1.45		1.34		-7.5%
Algerian Dinar		72.47		74.19		2.4%		72.06		74.29		3.1%
Pakistan Rupee		85.40		84.81		-0.7%		85.97		85.67		-0.4%
Bangladeshi Taka		72.37		69.66		-3.7%		74.15		70.60		-4.8%
Vietnamese Dong		20,409		-		n/a		20,618		-		n/a
Lao Kip		8,042		-		n/a		8,011		-		n/a
Ukrainian Hryvnia		7.96		7.95		-0.1%		7.97		7.96		-0.1%
Kazakh Tenge		146.00		147.24		0.8%		146.25		147.40		0.8%
Armenian Dram		370.09		384.32		3.8%		368.86		363.44		-1.5%
Georgian Lari		1.71		1.76		2.9%		1.67		1.77		6.0%
Kyrgyz Som		46.79		45.18		-3.4%		45.21		47.10		4.2%

*Functional currencies in Tajikistan, Uzbekistan and Cambodia are US dollars.

ATTACHMENT D: WIND TELECOMUNICAZIONI S.P.A. CONDENSED STATEMENTS OF INCOME


EUR mln	H1 2011		H1 2010		Change
Revenue		2,707		2,645		2.3%
Other revenue		43		61		-29.2%
Total Revenue		2,750		2,706		1.6%
EBITDA		1,023		1,039		-1.6%
D&A		(508)		(490)		-3.8%
EBIT		514		549		-6.3%
Financial Income and expenses		(406)		(468)		13.4%
EBT		109		81		34.5%
Income Tax		(88)		(81)		-9.2%
Profit/(Loss) from discontinued operations		6		17		-65.1%
Net income		26		16		58.5%

ATTACHMENT E: DEFINITIONS

EBITDA is a non-U.S. GAAP financial measure. EBITDA is defined as earnings before interest, tax, depreciation and amortization. VimpelCom calculates EBITDA as operating income before depreciation, amortization and impairment loss and includes certain non-operating losses and gains mainly represented by litigation provisions for all of its Business Units except for its Russia Business Unit. The Russia Business Unit’s EBITDA is calculated as operating income before depreciation and amortization. EBITDA should not be considered in isolation or as a substitute for analyses of the results as reported under U.S. GAAP. Historically our management used OIBDA (defined as operating income before depreciation, amortization and impairment losses) instead of EBITDA. Following the acquisition of Wind Telecom, our management concluded that EBITDA is a more appropriate measure because it is more widely used amongst European-based analysts and investors to assess the performance of an entity and compare it with other market players. Our management uses EBITDA and EBITDA margin as supplemental performance measures and believes that EBITDA and EBITDA 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 EBITDA include the key revenue and expense items for which the Company’s operating managers are responsible and upon which their performance is evaluated. EBITDA also assists management and investors by increasing the comparability of the Company’s performance against the performance of other telecommunications companies that provide EBITDA information. This increased comparability is achieved by excluding the potentially inconsistent effects between periods or companies of depreciation, amortization and impairment losses, which items may significantly affect operating income between periods. However, our EBITDA results may not be directly comparable to other companies’ reported EBITDA results due to variances and adjustments in the components of EBITDA (including our calculation of EBITDA) or calculation measures. Additionally, a limitation of EBITDA’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 EBITDA to net income attributable to VimpelCom Ltd., the most directly comparable U.S. GAAP financial measure, is presented above.

EBITDA margin is calculated as EBITDA divided by net operating revenues, expressed as a percentage.

EBIT is a non-U.S. GAAP measure and is calculated as EBITDA plus depreciation, amortization and impairment loss. Our management uses EBIT as a supplemental performance measure and believes that it provides useful information of earnings of the Company before making accruals for financial income and expenses and Net foreign exchange (loss)/gain and others. Reconciliation of EBIT to net income attributable to VimpelCom Ltd., the most directly comparable U.S. GAAP financial measure, is presented above.

Net foreign exchange (loss)/gain and others represents the sum of Net foreign exchange (loss)/gain, Equity in net (loss)/gain of associates and Other (expense)/income, net (primarily losses from derivative instruments), and is adjusted for certain non-operating losses and gains mainly represented by litigation provisions. Our management uses Net foreign exchange (loss)/gain and others as a supplemental performance measure and believes that it provides useful information about the impact of our debt denominated in foreign currencies on our results of operations due to fluctuations in exchange rates, the performance of our equity investees and other losses and gains the Company needs to manage to run the business.

EBT is a non-U.S. GAAP measure and is calculated as EBIT minus Financial income and expenses (which is calculated by subtracting interest income from interest expense) and Net foreign exchange (loss)/gain and others. Our management uses EBT as a supplemental performance measure and believes that it provides useful information about earnings of the Company before making accruals for income tax expenses. Reconciliation of EBT to net income attributable to VimpelCom Ltd., the most directly comparable U.S. GAAP financial measure, is presented above.

ARPU (Monthly Average Revenue per User) is calculated by dividing service revenue during the relevant period, including revenue from voice-, roaming-, interconnect-, and value added services (including mobile data, SMS, MMS), but excluding revenue from connection fees, sales of handsets and accessories and other non-service revenue, by the average number of subscribers during the period and dividing by the number of months in that period. For business unit Africa and Asia (except SEA) visitors roaming revenue is excluded from service revenues.

LOGO

Broadband subscribers 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 and xDSL technologies as well as mobile internet access via WiFi and USB modems using 3G/HSDPA technologies. Our Italian subsidiary measures broadband subscribers based on the number of active contracts signed.

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.

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 subscribers 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 subscribers also includes SIM-cards for use of mobile Internet service via USB modems and subscribers for WiFi. The number for Italy is based on SIM-cards, users of which generated revenue at any time during the twelve months prior to the measurement date. For the purpose of this earnings release, we include all subscribers of Zimbabwe, which is accounted for as investment at cost, into business unit Africa and Asia and subscribers of all our Canada equity investee into business unit Europe and North America, both of which are included into total subscribers of VimpelCom.

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 subscribers during the period and dividing by the number of months in that period.

Net debt is a non-U.S. GAAP financial measure and is calculated as the sum of interest bearing long-term debt and short-term debt minus cash and cash equivalents and long-term and short-term deposits. 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 and long-term and short-term deposits. 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.

Reportable segments, the Company identified Russia, Europe and North America, Africa and Asia, CIS and Ukraine based on the business activities in different geographical areas. Although Georgia is no longer a member of the CIS, consistent with VimpelCom’s historic reporting practice VimpelCom continues to include Georgia in its CIS reporting segment. Intersegment revenues are eliminated in consolidation.

2Q 2011

Presentation

Jo Lunder, CEO

Amsterdam, September 7, 2011

VimpelCom Ltd

2011

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 to the Company's

strategy, development plans and anticipated performance. The forward-looking statements are based on

management's best assessment of the Company's strategic and financial position, and 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 and

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 newly-acquired businesses and other

factors. There can be no assurance that these risks and uncertainties will not have a material adverse effect on the

Company, that the Company will be able to grow or that it will be successful in executing its strategy and

development plans. 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 annual report on Form 20-F for the

year ended December 31, 2010 filed with the U.S. Securities and Exchange Commission (the “SEC”) 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 herein, or to make corrections to reflect future events

or developments.

VimpelCom Ltd

2011

Key messages

Second quarter results

•

Solid revenue and subscriber growth

•

Solid performance in all Business Units

•

Long-term financing secured

•

Delivering synergies ahead of plan in Kyivstar

•

Integration of Wind Telecom and VimpelCom well on track

•

Interim dividend 2011 of USD 0.45 per share

Value agenda 2012 -

2014

•

First outline today

•

Presentation in second half November at Investor Day

VimpelCom Ltd

2011

Group

Highlights

Jo Lunder, CEO

VimpelCom Ltd

2011

Management team with strong track records

Organizational Structure

Henk van Dalen

CFO

Philip Tohme

CTO

Business Unit Management

Jo Lunder

CEO

Khaled Bichara

President and COO

Igor

Lytovchenko

Ukraine

Elena

Shmatova

Russia

Ahmed

Abou Doma

Asia & Africa

Dmitry

Kromsky

CIS

Ossama

Bessada

Europe & NA

Group Executive Board

Khaled Bichara

Acting CCO

VimpelCom Ltd

2011

2Q11 Highlights

Key Results and Developments

Strategic Progress

* Pro Forma

•

Mobile subscribers 193 million, up 11% YoY*

•

Total fixed-line subs 5 million, up 22% YoY*

•

Revenues of USD 6.0 billion, up 9%YoY*

•

EBITDA of USD 2.4 billion, stable YoY*

•

Solid performance all Business Units:

Continued subscriber growth in Russia

Market outperformance in Italy

Profitable growth in emerging markets

•

Strong cash flow generation

•

Interim Dividend 2011 USD 0.45 per share

•

Acquisition Wind Telecom closed

•

Strengthened position in Far East of Russia

•

Strong growth mobile and fixed broadband

•

Launched integration

VimpelCom and Wind Telecom

•

Expected synergies reaffirmed

•

Synergies merger Kyivstar ahead of plan

•

New organizational structure

•

“Value Agenda 2012-2014” in preparation

VimpelCom Ltd

2011

Financial

Highlights

Henk van Dalen, CFO

VimpelCom Ltd

2011

2Q11 Actual Financial Highlights

Consolidated financial and operating highlights

(USD million)

•

Revenues more than doubled YoY

•

EBITDA increased with 73% YoY

•

Net cash from operating activities up 23%

•

Mobile subscriber base more than doubled to 193 million

USD mln

Actual

2Q11

2Q10

YoY

Net operating revenues

5,532

2,642

109%

EBITDA

2,184

1,260

73%

EBITDA margin

39.5%

47.7%

Net income attributable to VimpelCom Ltd.

239

335

-29%

EPS, basic (USD)

0.16

0.28

-43%

Capital expenditures

1,016

381

167%

Net cash from operating activities

1,231

1,001

23%

Total mobile subscriptions ('000)

192,742

89,372

116%

VimpelCom Ltd

2011

2Q11 Pro Forma Financial Highlights

+9% YoY

Revenues

(USD million)

Stable YoY

EBITDA

(USD million)

EBITDA

EBITDA Margin

CAPEX

(USD million)

CAPEX

CAPEX / LTM Revenue

Highlights:

•

Revenues grew 9% YoY to USD 6.0 billion

driven by organic growth (3%) and favorable forex

•

EBITDA stable at USD 2.4 billion, due to lower

mobile EBITDA in Russia and one-off costs

compensated by other businesses and forex

•

EBITDA margin declined YoY to 39.5% primarily due

to lower mobile margin in Russia as a result of our

investments in that market

•

CAPEX stood at USD 1.0 billion, in line with our

expected 21% of capex/revenues

VimpelCom Ltd

2011

Opening

gross debt

Opening

cash and

deposits

Opening

net debt

Net

Operating

Cash Flow,

actual

Cash

Capex,

actual

Acquisition

Wind gross

debt

Acquisition

net of

cash

acquired

Dividends

Other***

Closing net

debt

Closing

cash and

deposits

Closing

gross debt

Key Components

Consolidated Cash and Net Debt Development

Actual H1 2011 (USD million)

See definition of EBITDA in earnings release. LTM stands for “last twelve

months”

to reporting date.

See definition of net debt in earnings release

(USD million)

June 30,

2011

Cash and Cash Equivalents

3,190

Total Assets

58,873

Gross Debt

27,392

-Short-term

1,637

-Long-term

25,756

Shareholders' equity

16,111

Gross Debt/Assets

0.5

Net Debt**

24,104

Pro forma LTM EBITDA*

9,329

Pro forma LTM Operating income

4,421

Pro forma LTM Financial Income

and Expenses

1,934

Pro forma ratios LTM 2Q 11

June 30,

2011

Net Debt/ EBITDA

2.6

EBITDA/ Financial Income

and Expenses

4.8

Gross Debt/ EBITDA

2.9

Debt, Cash and Ratios

Net Cashflow From Operating Activities, Actual

(USD million)

*** Forex effect on cash, non-cash changes debt,

Wind deposits and finance raising costs

VimpelCom Ltd

2011

EURO

US Dollars

Russian Ruble

Other

WIND Italy

VIP/OJSC

Other

Debt Composition and Maturity Profile

Group Debt Maturity Schedule as of June 30, 2011, Actual

(USD million)

2HY

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Debt Composition by Currency Actual

2Q 11

1,276

1,408

2,454

1,242

1,968

2,251

9,621

5,116

1,000

1,500

1Q 11

40%

60%

18%

31%

43%

VimpelCom Ltd

2011

Interim Dividend 2011 Declared

* For a full dividend guideline please refer to www.vimpelcom.com

** Operating

free

cash

flow

net

cash

from

operating

activities

minus

capital expenditures

Interim dividend 2011 of USD 733 million, USD 0.45 per share

•

The record date for the Company’s shareholders entitled to receive the interim dividend

has been set for December 1, 2011

Dividend guideline*

•

Aim

pay

least

USD

0.80

per

common

share,

assuming

not

than

1,628

million

common shares issued and outstanding

•

Intention to pay a dividend that develops substantially in line with the development of

operational performance

•

Barring unforeseen circumstances, the Company aims to pay out a significant part of its

annual operating free cash flow** to its shareholders in the form of dividends

•

Precise amount and timing of dividends for a particular year will be approved by the

Supervisory Board, subject to certain constraints and guidelines

Dividend paid in 2011 already USD 0.5 billion in cash relating to 2010 financial results

VimpelCom Ltd

2011

Business Units

Performance

Khaled Bichara, President and COO

VimpelCom Ltd

2011

Highlights:

•

Mobile subscribers 55.3 million, up 9% YoY

•

Revenues RUR 65.2 million, up 6% YoY

•

than

million

mobile

net

adds

highest

Russia

•

Solid growth mobile data and increased data ARPU

•

Mobile BB subscribers 2.4 million, up 82% YoY

•

Strong growth of fixed broadband; continued

expansion of IPTV

•

Fixed BB revenues RUR 1.9 billion, up 45% YoY

•

Strengthened presence in Far East through NTC

acquisition and new 2G licenses

Revenues

(RUR billion)

EBITDA

and EBITDA Margin

(RUR billion)

EBITDA

EBITDA Margin

CAPEX

(RUR billion)

CAPEX

CAPEX/Revenue LTM

Mobile

Fixed-line

BU Russia: Financial Highlights

65.2

60.4

64.5

64.3

61.7

+54% YoY

-7% YoY

+6% YoY

VimpelCom Ltd

2011

50.9

51.6

52.0

53.0

55.3

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

330

343

333

308

327

219

222

228

218

244

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

1.2

1.3

1.4

1.6

1.7

1.3

1.5

1.9

2.3

2.4

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

359

360

388

384

251

246

238

227

209

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Mobile subscribers

(RUR million)

ARPU

and MOU

(RUR)

(min)

ARPU

MOU

Broadband subscribers

(RUR million)

Broadband ARPU

(RUR)

Fixed BB ARPU

Mobile BB ARPU

Fixed BB subs

Mobile BB subs

BU Russia: Operating Highlights

+39% YoY Fixed

+82% YoY Mobile

1% YoY ARPU

+11% YoY MOU

+7% YoY Fixed

-17% YoY Mobile

+9% YoY

VimpelCom Ltd

2011

BU Europe & NA: Financial Highlights Italy

Highlights:

•

Mobile subscribers 20.6 million, up 7% YoY

•

Revenues EUR 1.4 billion, up 1% organically

•

Continued relative outperformance in the market

•

Strengthened market share in both mobile and fixed

•

Solid growth of fixed broadband coupled with an

increase in ARPU

•

Strong growth mobile in Internet revenues, up 33%

to EUR 56 million

•

Stable organic EBITDA

•

Solid EBITDA margin of 37.6%

•

Continued to deliver on investment plan with

EUR 234 million of CAPEX

Revenues*

(EUR million)

EBITDA*

and EBITDA Margin

(EUR million)

EBITDA

EBITDA Margin

CAPEX*

(EUR million)

CAPEX

CAPEX/Revenue LTM

Mobile

Fixed-line

* IFRS

-1% YoY reported

+1% YoY organic

-5% YoY reported

Stable YoY organic

+15% YoY

1,046

1,021

1,038

982

1,029

366

341

408

369

370

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

556

557

534

496

526

39%

41%

37%

38%

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

944

214

398

17%

FY 10

Q1 11

Q2 11

VimpelCom Ltd

2011

Mobile subscribers

(EUR million)

ARPU

and MOU

(EUR)

(min)

Broadband subscribers

(EUR million)

Broadband ARPU

(EUR)

BU Europe & NA: Operating Highlights Italy

+18% YoY

+5% YoY

-7% YoY

+7% YoY

VimpelCom Ltd

2011

BU Africa & Asia: Financial and Operating Highlights

Highlights:

•

Mobile subs surpassed 74 million, up 12%

•

Revenues USD 949 million, up 5% YoY

•

Strong, profitable growth across markets

•

EBITDA grew 8% YoY, reflecting revenue growth and

focus on cost optimization

•

Strong EBITDA margin of 42.9%

•

Algeria: Revenue increased 5% despite challenging

regulatory environment.

•

Pakistan: Stable growth revenue and EBITDA driven

by solid subscriber growth and continued focus on

cost efficiency

•

Bangladesh: Revenues increase by over 17% driven

by growing customer base, up 25% YoY

Revenues

(USD million)

EBITDA

and EBITDA Margin

(USD million)

EBITDA

EBITDA Margin

CAPEX

(USD million)

CAPEX

CAPEX/Revenu LTM

+5% YoY

+8% YoY

+3% YoY

901

910

895

891

949

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

496

14%

13%

10%

FY 10

Q1 11

Q2 11

377

385

337

404

407

41.8%

42.3%

37.7%

45.3%

42.9%

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

VimpelCom Ltd

2011

Highlights:

•

Mobile subscribers 24.7 million, up 3% YoY

•

Revenue UAH 3.3 million, up 7% YoY, driven by

stable growth in mobile subs and ARPU

•

Strong growth in mobile data revenue, up 48% YoY

to UAH 190 million

•

Fixed-line revenue up 23% YoY, reflecting 87%

increase in fixed broadband revenue YoY

•

EBITDA up 10% YoY

•

EBITDA margin improved to 54.8%

•

Synergies integration ahead of plan,

NPV USD 120 million secured since inception

Revenues

(UAH billion)

EBITDA

and EBITDA Margin

(UAH billion)

EBITDA

EBITDA Margin

CAPEX

(UAH million)

CAPEX

CAPEX/Revenue LTM

BU Ukraine: Financial and Operating Highlights

+9% YoY

+7% YoY

-14% YoY

VimpelCom Ltd

2011

Highlights:

•

Mobile subscribers 17.5 million, up 27% YoY

•

Revenues USD 389 million, up 16%

•

Increased usage of voice and data traffic

•

Successful rollout of 2G and 3G networks

•

Record revenue growth of 83% YoY in data services

•

EBITDA of USD 175 million, up 9%

•

EBITDA margin 45%

•

CAPEX increased related to continued mobile and

fixed network expansion in order to support further

growth

Revenues

(USD million)

+9% YoY

EBITDA

and EBITDA Margin

(USD million)

EBITDA

EBITDA Margin

CAPEX

(USD million)

This segment includes our operations in Kazakhstan,

Uzbekistan, Armenia, Kyrgyzstan, Tajikistan and Georgia.

Mobile

Fixed-line

CAPEX

CAPEX/Revenue LTM

336

362

351

389

BU CIS

: Financial and Operating Highlights

+16% YoY

+87% YoY

VimpelCom Ltd

2011

Global Scope,

Local Excellence

Jo Lunder, CEO

VimpelCom Ltd

2011

VimpelCom Today

Revenue

Russia

Italy

Other

Balanced

Revenue

Base

USD million

2Q11 LTM

Mobile

1,860

Fixed

840

Broadband/Data revenue

Financial Parameters

USD

2Q11 LTM

Revenues

per share

13.9

EBITDA

per share

5.8

FCF***

per share

3.3

Attractive

Emerging

Markets

Exposure

Mobile subs

(million)

192

Population covered

(million)

864

Countries

Emerging

Market PoP

750

Emerging market exposure

Solid

Financial

Parameters

Significant

Data

Growth

Potential

Pro forma 2Q11 annualized

Pro-forma

USD

22.6bn*

34%

38%

28%

2Q11 LTM

** Source: Company information; The Mobile World

*** Free cash Flow = EBITDA – CAPEX

Expected Synergies Reaffirmed

Approx.

NPV of

USD2.5bn

35%

65%

Opex

Capex

First phase

•

Savings through harmonization

current price levels

•

Cost benchmarking

Next phase

•

Implement best practices on global

categories

•

Vendor rationalization and market share

redistribution

•

Focus on local categories

Target

Secured

Next phase

First phase

Communicated

Current status

(USD billion)

VimpelCom Ltd

2011

Three Strategic Clusters Recognized

* Penetration

Russia

Italy

•

Early stage operations

•

Potential strong growth

•

Investments required to reach

full potential

Increase Profit and Cash

Growth Engine

Develop New Business

•

Large addressable market

•

High revenue growth

•

Growing penetration

•

Untapped growth mobile data

•

Large mature countries

•

Actively maintain position

•

Strong broadband growth

•

Mobile and Fixed offerings

Algeria

Kazakhstan

Armenia, Tajikistan, Georgia

Canada

Vietnam

Laos

Cambodia

Burundi

CAR

Zimbabwe

Pop

Subs

ARPU

Pen

III

Ukraine

Pakistan

Bangladesh

Uzbekistan, Kyrgyzstan

Russia

Italy

Pop

Subs

ARPU

Pen*

140m

55m

12 USD

159%

61m

21m

22 USD

151%

65m

26m

7-10 USD

75%-130%

425m

86m

2-6 USD

40%-110%

Pop

Subs

ARPU

Pen

34m

0.3m

28 USD

70%

138m

4.8m

3-6 USD

27%-91%

VimpelCom Ltd

2011

Unified, Disciplined and Accountable Business Performance Culture

Drive Profitable Growth

Increase Capital

Efficiency

Reduce Costs and

Realize Synergies

Attractive

Dividend Yield

Increase

Free Cash Flow

YoY

Value Agenda 2012-2014

Stakeholder

Value

Build World-Class Organization,

Governance and Business Steering

VimpelCom Ltd

2011

Conclusion

Second quarter results

•

Solid revenue and subscriber growth

•

Solid performance in all Business Units

•

Long-term financing secured

•

Delivering synergies ahead of plan in Kyivstar

•

Integration of Wind Telecom and VimpelCom well on track

•

Interim dividend 2011 of USD 0.45 per share

Value agenda 2012 -

2014

•

First outline today

•

Presentation in second half November at Investor Day

Q&A

Amsterdam, September 2011

Thank you

Amsterdam, September 2011

VimpelCom Ltd

2011

Contact Information

Please find herewith all contact details of VimpelCom’s Investor Relations team:

Gerbrand Nijman

Investor_Relations@vimpelcom.com

Tel: +31 20 79 77 200 (Amsterdam)

Marine Babayan

Russia, Ukraine and CIS

Investor_Relations@vimpelcom.com

Tel:

495

974

5888

(Moscow)

Noha Khalil

Asia & Africa and Orascom Telecom

otinvestorrelations@otelecom.com

Tel: +202 2461 5050 / 51 (Cairo)

Stefano Songini

Europe & North America and fixed income

ir@mail.wind.it

Tel

+39

83113099

(Rome)

VimpelCom Ltd

2011

Appendices

VimpelCom Ltd

2011

2011: Chief Executive Officer of VimpelCom Ltd

2010 -2011: Chairman of the Board of Directors

2002-2011: Member of VimpelCom Board of Directors

2003-2005: Chairman of the Board of OJSC VimpelCom

1999 -2003: CEO of OJSC VimpelCom and General Director

•

Sustained growth and expansion

•

Attracted significant investment from Alfa Group and Telenor

•

A track record of delivering results

Joe Lunder

CEO

2011: President and Chief Operating Officer of VimpelCom Ltd

2009 –

2011: Chief Executive Officer of Wind Telecom and Orascom Telecom Holding (OTH)

2003 –

2011: Member of OTH Board of directors

2006 -

2009: Chief Operating Officer of Wind Telecomunicazioni (Wind)

2005 -

2006: Head of the fixed line and portal BU at Wind Telecomunicazioni

•

Restructured Wind’s organization, transforming it into a leading performing mobile,

fixed line and broadband integrated operator in Europe

•

Prior

joining

Wind,

was

the

cofounder,

Chairman

and

CEO

LINKdotNET

(”LDN”),

the largest private Internet Service Provider (”ISP”) in the Middle East

•

32,

was

recognized

the

“Young

Executive

the

Year”

Business

Today

Khaled Bichara

President and COO

2010: Chief Financial Officer of VimpelCom Ltd

2006 –

2010: CFO and member of the Board of Management of TNT N.V.

2000 –

2006: Member of the Board of Management and CFO of Royal DSM N.V.

1990 -

2000: Managed various divisions at DSM N.V.

•

10 years of leadership in group financial function (CFO) in listed (Euronext AEX/NYSE) companies

•

Extended

experience

M&A

and

disposal,

large

international

business

transactions,

general

management,

strategy

and

portfolio

transformation,

and

all

functions

•

Member of the Board of Advisors NEVIR (Dutch Association for Investor Relations)

•

Member of the Board of Advisors NE, Nationaal Fonds 4/5 mei

•

Member of the Board VEUO (Dutch Association of Listed Companies)

Henk van Dalen

CFO

Transformed VimpelCom into the second largest wireless telecommunications company In Central and Eastern Europe

Active member of the Software Community in the Middle East, a founding member of

the Egyptian Software Association and the Internet Society of Egypt

Member of Supervisory Board of NIB Capital Bank and Macintosh Retail Group NV

VimpelCom Ltd

2011

Average rates

Closing rates

Currency

YTD11

YTD10

YoY

YTD11

FY2010

Delta

RUR

28.62

30.07

5.1%

28.08

30.48

8.5%

EUR

1.40

1.32

-6.2%

1.45

1.34

-7.5%

DZD

72.47

74.19

2.4%

72.06

74.29

3.1%

PKR

85.40

84.81

-0.7%

85.97

85.67

-0.4%

BDT

72.37

69.66

-3.7%

74.15

70.60

-4.8%

VND

20,408

n/a

20,618

n/a

LAK

8,042

n/a

8,011

n/a

UAH

7.96

7.95

-0.1%

7.97

7.96

-0.1%

KZT

146.00

147.24

0.8%

146.25

147.40

0.8%

AMD

370.09

384.32

3.8%

368.86

363.44

-1.5%

GEL

1.71

1.76

2.9%

1.67

1.77

6.0%

KGS

46.79

45.18

-3.4%

45.21

47.10

4.2%

Source: National Banks of the respective countries, Company

calculations

FOREX Development

VimpelCom Ltd

2011

Reconciliation Tables

Reconciliation of consolidated EBITDA of VimpelCom

USD mln

Pro forma

2Q11

2Q10

YTD 2011

YTD 2010

EBITDA

2,371

2,368

4,628

4,583

Adjustment for certain non-

operating items

Depreciation

(892)

(722)

(1,731)

(1,474)

Amortization

(342)

(379)

(700)

(765)

Impairment loss

(9)

(15)

Operating income

1,145

1,260

2,230

2,333

(8)

(3)

(10)

(5)

EBIT

1,137

1,257

2,220

2,329

Financial income and expenses

(486)

(448)

(971)

(1,028)

including interest income

including interest expense

(524)

(514)

(1,045)

(1,123)

Net foreign exchange (loss)/gain and others

(120)

(493)

(416)

including net foreign exchange (loss)/gain

(299)

210

(199)

including equity in net (loss)/gain of associates

(14)

(22)

(61)

including other (expense)/income, net

(114)

(175)

(155)

(162)

items

EBT

531

316

1,327

884

Income tax expense

(226)

(170)

(418)

(425)

Profit (loss) from discontinued operations

Net income

305

146

909

458

Net (loss)/income attributable to the noncontrolling

interest

(7)

(73)

(42)

Net Income attributable to VimpelCom Ltd.

312

219

875

501

Adjustment for certain non-operating items

including adjustment for certain non-operating

VimpelCom Ltd

2011

Reconciliation Tables

Reconciliation of consolidated EBITDA of VimpelCom (continued)

USD mln

Actual

2Q11

2Q10

YTD 2011

YTD 2010

EBITDA

2,184

1,260

3,391

2,300

Depreciation

(829)

(377)

(1,305)

(729)

Amortization

(292)

(117)

(393)

(183)

Impairment loss

Operating income

1,070

769

1,703

1,391

(8)

(2)

(10)

(3)

EBIT

1,062

766

1,693

1,388

Financial income and expenses

(449)

(116)

(569)

(246)

including interest income

including interest expense

(469)

(132)

(604)

(274)

Net foreign exchange (loss)/gain and others

(134)

(123)

(70)

including net foreign exchange (loss)/gain

(26)

(126)

114

(21)

including equity in net (loss)/gain of associates

(9)

including other (expense)/income, net

(107)

(10)

(112)

(58)

including adjustment for certain non-operating

items

EBT

479

527

1,182

1,072

Income tax expense

(207)

(178)

(301)

(331)

Profit (loss) from discontinued operations

Net income

276

349

885

741

Net (loss)/income attributable to the

noncontrolling interest

Net Income attributable to VimpelCom Ltd.

239

335

829

716

Adjustment for certain non-operating items

VimpelCom Ltd

2011

Reconciliation Tables

Reconciliation of consolidated net debt of VimpelCom

USD mln

2Q10

3Q10

4Q10

1Q11

2Q11

Net debt

3,865

3,970

4,740

4,840

24,104

Cash and cash equivalents

(2,353)

(2,467)

(885)

(1,858)

(3,190)

Long -

term and short

-term deposits

(115)

(56)

(36)

(592)

(99)

Long -

term debt

4,801

4,367

4,499

6,047

25,756

Short-term debt

1,532

2,126

1,162

1,243

1,637

VimpelCom Ltd. 2Q11 Fact Book

BU Russia

Russia

BU Europe and North America

Italy

BU Africa and Asia

BU Ukraine

BU CIS

Russia

(in USD millions, unless stated otherwise, unaudited)

CONSOLIDATED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

1,919

2,042

2,099

2,102

2,064

2,329

Gross margin

1,450

1,530

1,560

1,503

1,458

1,630

Gross margin, %

75.6%

74.9%

74.3%

71.5%

70.6%

70.0%

Adjusted OIBDA

911

964

988

913

868

n.a.

Adjusted OIBDA, %

47.5%

47.2%

47.1%

43.4%

42.1%

n.a.

EBITDA

911

964

988

913

868

968

EBITDA margin

47.5%

47.2%

47.1%

43.4%

42.1%

41.5%

SG&A

524

558

564

584

579

655

including Sales & Marketing Expenses

166

185

198

215

184

239

Capital expenditures

124

244

383

807

334

407

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

1,602

1,714

1,757

1,753

1,713

1,943

Adjusted OIBDA

820

875

886

814

778

n.a.

Adjusted OIBDA, %

51.2%

51.1%

50.4%

46.5%

45.4%

n.a.

EBITDA

820

875

886

814

778

859

EBITDA margin

51.2%

51.1%

50.4%

46.5%

45.4%

44.2%

Subscribers (‘000)

51,254

50,912

51,615

52,020

52,991

55,251

Mobile ARPU (US$)

10.3

10.9

11.2

10.8

10.5

11.7

Mobile broadband subscriptions using USB modems (‘000)

1,169

1,300

1,500

1,927

2,313

2,362

Mobile broadband ARPU (US$)

9.2

8.3

8.0

7.7

7.8

7.5

MOU, min

204

219

222

228

218

243

Churn 3 months active base (quarterly), %

10.6%

12.8%

12.3%

15.2%

14.6%

14.9%

FIXED-LINE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

317

328

342

349

351

387

Adjusted OIBDA

102

n.a.

Adjusted OIBDA, %

28.6%

27.1%

29.7%

28.2%

25.6%

n.a.

EBITDA

102

107

EBITDA margin

28.6%

27.1%

29.7%

28.2%

25.6%

27.6%

Fixed-line broadband revenues

Fixed-line broadband subscribers (‘000)

1,167

1,199

1,257

1,421

1,569

1,671

Fixed-line broadband ARPU, US$

13.2

11.9

11.7

12.6

13.3

13.7

FTTB revenues

FTTB subscribers (‘000)

1,088

1,131

1,193

1,358

1,510

1,635

FTTB ARPU, US$

12.4

11.8

11.7

12.5

13.2

13.6

Italy

(in EUR millions, unless stated otherwise, unaudited)

CONSOLIDATED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Total revenues

1,295

1,411

1,363

1,446

1,351

1,399

EBITDA

483

556

557

534

496

526

EBITDA margin

37.3%

39.4%

40.9%

37.0%

36.8%

37.6%

Capital expenditures*

128

203

214

398

146

234

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Total revenues

937

1,046

1,021

1,038

982

1,029

EBITDA

417

477

487

453

432

455

EBITDA margin

44.5%

45.6%

47.6%

43.7%

44.0%

44.2%

Subscribers (‘000)

18,836

19,263

19,622

19,933

20,279

20,559

Mobile ARPU, €

16.1

17.2

16.8

16.5

15.4

16.0

of which :

ARPU voice, €

13.2

13.8

13.5

13.1

12.1

12.7

ARPU data, €

2.9

3.3

MOU**, min

177

185

183

191

187

198

Total traffic**, mln. min.

9,883

10,530

10,600

11,263

11,260

12,106

Churn, annualised rate (%)

22.9%

24.2%

27.3%

28.0%

26.4%

26.6%

FIXED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Total revenues

357

366

341

408

369

370

EBITDA

EBITDA margin

18.4%

21.6%

20.6%

19.9%

17.6%

19.2%

Total voice subscribers (‘000)

2,875

2,904

2,910

3,003

3,085

3,128

of which :

Total DIRECT voice subscribers (‘000)

2,066

2,108

2,136

2,226

2,312

2,357

Total INDIRECT voice subscribers (‘000)

809

797

774

777

773

771

Total fixed-line ARPU, €

34.7

34.8

33.3

33.6

33.4

Total Traffic, mln. min.

5,147

5,011

4,139

5,204

5,018

4,764

Total Internet subscribers (‘000)

1,944

1,956

1,973

2,056

2,158

2,196

of which :

Broadband (‘000)

1,713

1,765

1,805

1,912

2,030

2,082

Broadband ARPU, €

18.5

18.4

18.5

17.9

19.3

19.2

Dual-play subscribers (‘000)

1,403

1,450

1,485

1,579

1,662

1,689

* Excluding impact of FOC capex

**Starting from Q2 2010 we include incoming traffic from international in the calculation of total traffic and in calculation of average minutes of use; Q1 2010 has been reclassified accordingly.

Algeria

(in USD millions, unless stated otherwise, unaudited)

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

413

437

445

453

439

478

EBITDA

229

246

267

241

261

283

EBITDA margin

55.4%

56.3%

60.0%

53.3%

59.4%

59.2%

Capital expenditures

-3

Subscribers (‘000)

14,790

15,142

14,919

15,087

15,509

15,964

Mobile ARPU (US$)

9.2

9.5

9.6

9.7

9.4

9.9

MOU, min

267

280

287

288

284

296

Churn 3 months active base (quarterly), %

6.4%

6.2%

7.3%

5.7%

4.7%

5.2%

Pakistan

(in USD millions, unless stated otherwise, unaudited)

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

272

287

267

281

275

292

EBITDA

106

116

105

111

118

EBITDA margin

39.0%

40.4%

39.3%

39.6%

40.3%

40.4%

Capital expenditures

Subscribers (‘000)

31,572

32,203

31,444

31,794

32,707

33,378

Mobile ARPU (US$)

2.8

2.9

2.7

2.9

2.8

MOU, min

203

210

192

221

206

213

Churn 3 months active base (quarterly), %

5.2%

5.9%

9.3%

8.2%

6.4%

7.1%

Bangladesh

(in USD millions, unless stated otherwise, unaudited)

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

100

114

121

122

126

128

EBITDA

EBITDA margin

42.0%

27.2%

19.0%

25.2%

35.7%

42.7%

Capital expenditures

Subscribers (‘000)

14,219

16,097

18,107

19,327

20,127

20,203

Mobile ARPU (US$)

2.3

2.5

2.3

2,1

2.0

MOU, min

233

237

227

221

205

211

Churn 3 months active base (quarterly), %

2.3%

2.1%

5.2%

4.6%

3.8%

5.1%

Ukraine

(in USD millions, unless stated otherwise, unaudited)

CONSOLIDATED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

311

426

404

375

412

Gross margin

254

351

336

312

345

Gross margin, %

63.5%

81.7%

82.4%

83.2%

83.7%

Adjusted OIBDA

165

242

216

204

n.a.

Adjusted OIBDA, %

22.5%

53.0%

56.9%

53.5%

54.4%

n.a.

EBITDA

163

239

217

202

226

EBITDA margin

22.1%

52.6%

56.0%

53.7%

54.0%

54.8%

SG&A

111

119

108

115

including Sales & Marketing Expenses

Capital expenditures

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues*

286

402

380

348

382

Subscribers (‘000)

1,951

24,059

25,057

24,390

24,398

24,695

ARPU, US$

3.8

5.0

5.4

5.1

4.7

5.1

MOU, min

197

427

433

457

466

474

Churn 3 months active base (quarterly), %

18.5%

6.3%

5.3%

9.6%

5.3%

4.3%

FIXED-LINE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues*

Fixed-line broadband revenue

Fixed-line broadband subscriptions (‘000)**

107

149

200

235

293

Fixed-line broadband ARPU, US$

8.6

8.3

7.5

7.0

6.2

5.8

FTTB revenues

FTTB subscriptions (‘000)

101

144

196

231

290

FTTB ARPU, US$

8.2

8.3

7.5

7.0

6.2

5.8

* Mobile and fixed revenues for the period from 2Q2010 to 4Q2010 were adjusted for consistency purposes

** Fixed line broadband subscription base has been revised for the period from 1Q2010 to 4Q2010 based on the standard VimpelCom definition for broadband subscriptions to reflect a 3-months active base

Kazakhstan

(in USD millions, unless stated otherwise, unaudited)

CONSOLIDATED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

160

184

197

194

183

203

Gross margin

123

145

156

152

139

150

Gross margin, %

77.2%

78.8%

79.1%

78.5%

75.7%

73.9%

Adjusted OIBDA

106

112

n.a.

Adjusted OIBDA, %

55.5%

57.4%

56.6%

51.2%

50.9%

n.a.

EBITDA

105

100

EBITDA margin

55.3%

57.1%

50.5%

48.8%

50.7%

48.8%

SG&A

including Sales & Marketing Expenses

Capital expenditures

122

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

156

181

193

188

174

194

Subscribers (‘000)

6,062

6,339

6,736

6,867

6,987

7,831

ARPU, US$

8.4

9.6

9.2

8.0

8.6

Mobile broadband subscriptions using USB modems (‘000)

n.a.

47.6

MOU, min

102

125

130

124

113

144

Churn 3 months active base (quarterly), %

11.4%

8.9%

8.8%

11.2%

11.4%

9.4%

FIXED-LINE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Fixed-line broadband revenues

0.1

0.2

0.4

0.7

1.0

Fixed-line broadband subscriptions (‘000)

Fixed-line broadband ARPU, US$

20.5

15.2

13.9

13.3

18.2

20.7

Uzbekistan

(in USD millions, unless stated otherwise, unaudited)

CONSOLIDATED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Gross margin

Gross margin, %

75.7%

76.3%

72.9%

72.7%

76.1%

74.2%

Adjusted OIBDA

n.a.

Adjusted OIBDA, %

43.3%

38.9%

40.7%

35.9%

45.7%

n.a.

EBITDA

EBITDA margin

43.3%

38.9%

40.7%

35.9%

45.7%

42.9%

SG&A

including Sales & Marketing Expenses

Capital expenditures

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Subscribers (‘000)

3,489

3,997

4,398

4,822

5,102

5,347

ARPU, US$

4.2

4.1

4.0

3.8

4.0

Mobile broadband subscriptions using USB modems (‘000)

7.7

10.5

12.9

25.5

29.7

42.5

MOU, min

369

383

388

403

391

413

Churn 3 months active base (quarterly), %

14.7%

3.7%

11.7%

14.2%

15.1%

FIXED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Fixed-line broadband revenues

0.4

0.5

0.6

1.4

Fixed-line broadband subscriptions (‘000)

Fixed-line broadband ARPU, US$

14.8

14.4

13.7

14.4

15.5

31.4

Armenia

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


CONSOLIDATED	Q1 2010	Q2 2010	Q3 2010	Q4 2010	Q1 2011	Q2 2011
Net operating revenues	42	45	49	48	46	47
Gross margin	31	32	35	33	29	31
Gross margin, %	73.9%	71.2%	71.9%	69.3%	63.1%	67.0%
Adjusted OIBDA	19	19	22	18	16
Adjusted OIBDA, %	45.8%	42.9%	45.4%	37.7%	34.0%
EBITDA	19	19	23	17	16	18
EBITDA margin	45.8%	42.0%	46.4%	36.4%	33.8%	38.3%
SG&A	11	13	12	15	13	13
including Sales & Marketing Expenses	1	2	2	3	2	2
Capital expenditures	3	4	7	16	9	6

MOBILE	Q1 2010	Q2 2010	Q3 2010	Q4 2010	Q1 2011	Q2 2011
Net operating revenues	15	18	21	20	20	20

Subscribers (‘000)	549	567	581	672	699	733
ARPU, US$	9.0	10.3	11.4	10.0	7.8	8.3
Mobile broadband subscriptions using USB modems (‘000)	7	7	7	7	8	10
MOU, min	346	270	287	275	238	262
Churn 3 months active base (quarterly), %	13.6%	16.0%	16.4%	14.1%	20.2%	20.4%

FIXED	Q1 2010	Q2 2010	Q3 2010	Q4 2010	Q1 2011	Q2 2011
Net operating revenues	27	27	28	28	26	27

Fixed-line broadband revenues	1.7	2.2	2.7	3.2	3.7	4.7
Fixed-line broadband subscriptions (‘000)	31	50	58	68	84	100
Fixed-line broadband ARPU, US$	19.7	17.7	17.7	17.1	15.4	16.2

Tajikistan

(in USD millions, unless stated otherwise, unaudited)

CONSOLIDATED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Gross margin

Gross margin, %

73.0%

64.7%

64.0%

67.3%

71.2%

75.0%

Adjusted OIBDA

n.a.

Adjusted OIBDA, %

29.7%

33.3%

39.6%

50.7%

44.9%

n.a.

EBITDA

EBITDA margin

29.7%

33.3%

37.4%

49.8%

44.9%

51.9%

SG&A

including Sales & Marketing Expenses

Capital expenditures

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Subscribers (‘000)

820

784

772

787

804

870

ARPU, US$

5.6

6.1

7.1

7.6

9.4

Mobile broadband subscriptions using USB modems (‘000)

n.a.

1.0

MOU, min

158

168

191

197

203

234

Churn 3 months active base (quarterly), %

13.6%

22.9%

22.8%

19.6%

18.6%

15.0%

FIXED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Georgia

(in USD millions, unless stated otherwise, unaudited)

CONSOLIDATED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Gross margin

Gross margin, %

52.3%

53.0%

64.6%

66.1%

66.7%

64.2%

Adjusted OIBDA

n.a.

Adjusted OIBDA, %

10.1%

13.0%

26.9%

16.5%

19.2%

n.a.

EBITDA

EBITDA margin

10.1%

13.0%

26.9%

14.8%

19.2%

21.9%

SG&A

including Sales & Marketing Expenses

Capital expenditures

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Subscribers (‘000)

431

466

529

560

611

712

ARPU, US$

7.5

7.9

8.1

6.6

6.1

6.9

MOU, min

125

141

147

134

147

224

Churn 3 months active base (quarterly), %

11.2%

12.0%

11.4%

18.1%

17.2%

14.3%

FIXED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

0.3

0.4

0.5

0.4

0.8

Kyrgyzstan

(in USD millions, unless stated otherwise, unaudited)

CONSOLIDATED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Gross margin

Gross margin, %

78.4%

77.8%

74.4%

76.8%

76.4%

76.7%

Adjusted OIBDA

n.a.

Adjusted OIBDA, %

37.3%

46.5%

41.6%

49.7%

56.1%

n.a.

EBITDA

EBITDA margin

37.3%

46.5%

29.4%

49.7%

56.1%

53.0%

SG&A

including Sales & Marketing Expenses

Capital expenditures

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

Subscribers (‘000)

1,774

1,722

1,766

1,904

1,965

2,102

ARPU, US$

4.7

5.3

5.6

5.1

5.6

Mobile broadband subscriptions using USB modems (‘000)

n.a.

23.3

MOU, min

194

236

288

313

290

319

Churn 3 months active base (quarterly), %

17.2%

17.3%

15.4%

13.1%

14.9%

10.2%

Sub Saharan Africa (Telecel Globe)

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

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

EBITDA

EBITDA margin

16.7%

24.0%

28.6%

26.6%

17.5%

7.5%

Subscribers (‘000)

2,017

2,250

2,714

2,974

2,584

2,789

- CAR

361

349

420

441

420

447

- Burundi

736

807

938

1,007

1,023

1,041

- Zimbabwe*

920

1,094

1,356

1,526

1,141

1,301

Mobile ARPU (US$):

- CAR

- Burundi

- Zimbabwe*

* Zimbabwe is accounted for as investment at cost

SEA

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

CONSOLIDATED

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Net operating revenues

4.4

5.5

5.0

6.9

10.0

17.8

Adjusted OIBDA

-8.6

-8.1

-8.8

-9.8

-3.2

Adjusted OIBDA, %

n.m.

n.a.

EBITDA

-8.6

-8.1

-8.8

-9.8

-3.2

-37.4

EBITDA margin

n.m.

MOBILE

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Subscribers (‘000)

491

525

505

651

1,307

1,993

-Cambodia

491

525

505

651

757

818

-Laos

n.a.

550

536

-Vietnam

n.a.

639

Mobile ARPU (US$):

- Cambodia

3.5

3.4

3.2

3.8

3.5

3.0

- Laos

n.m.

5.1

- Vietnam

n.m.