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Press release from PR Newswire

VimpelCom Ltd Announces Second Quarter 2010 Operating and Financial Results

Thursday, September 02, 2010

VimpelCom Ltd Announces Second Quarter 2010 Operating and Financial Results06:34 EDT Thursday, September 02, 2010AMSTERDAM and NEW YORK, Sept. 2 /PRNewswire-FirstCall/ -- "VimpelCom Ltd" ("VimpelCom" or the "Company") (NYSE: VIP), a leading international provider of telecommunications services, today announced its operating and financial results for the quarter ended June 30, 2010.Quarterly highlights:Combination of OJSC VimpelCom and Kyivstar into VimpelCom Ltd. completed April 21, 2010*Number of mobile subscriptions up to 89.4 million; broadband subscriptions grew to 2.7 millionNet operating revenues increased by 23% year-on-year to $2.64 billion Adjusted OIBDA** reached $1.26 billion, consolidated OIBDA margin comprised 47.8%Net income attributable to VimpelCom was $334.7 millionOperating cash flow amounted to $1.0 billion *  On April 21, 2010, following the successful completion of VimpelCom's exchange offer for common and American depositary shares of OJSC VimpelCom, VimpelCom's two strategic shareholders completed the acquisition of OJSC VimpelCom and Kyivstar by VimpelCom Ltd. This transaction was accounted for as the acquisition of Kyivstar by VimpelCom Ltd., an accounting successor of OJSC VimpelCom. Therefore, the financial results of Kyivstar have been included in the consolidated financial results of the Company since April 21, 2010. The financial results for the periods prior to April 21, 2010 represent the historical financial results of OJSC VimpelCom. ** Hereafter Adjusted OIBDA is referred to as OIBDA and Adjusted OIBDA margin is referred to as OIBDA margin (See definitions of Adjusted OIBDA and Adjusted OIBDA margin in Attachment A) Consolidated Financial Results*CONSOLIDATED OPERATIONS  (US$, millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues2,641.62,145.523.1%2,231.118.4%Adjusted OIBDA1,261.81,087.616.0%1,041.221.2%Adjusted OIBDA margin, % 47.8%50.7%46.7%SG&A766.4573.533.6%643.319.1%  including HQ cost** 19.9n/a10.884.3%SG&A percentage29.0%26.7%28.8%Net income attributable to VimpelCom Ltd.334.7700.5-52.2%381.5-12.3%Net income attributable to VimpelCom Ltd. per ADS, basic (US$) 0.280.690.38Operating cash flow1,000.9859.616.4%803.324.6%Capital expenditures381.4155.3145.6%179.3112.7%ROCE, %22.7%20.2%24.3%*  Please see the consolidated results on a pro-forma basis in the Attachment G.** Includes $12.2 and $8.5 million Kyivstar transaction related costs for 2Q10 and 1Q10, respectively.Commenting on the results, VimpelCom's Chief Executive Officer, Alexander Izosimov, said, "Our second quarter results show positive dynamics, reflecting economic recovery in major markets and seasonal trends. Revenues increased substantially as a result of both Kyivstar consolidation and strong organic growth across all key segments of our business. The mobile segment in Russia delivered its highest ever quarterly ruble revenues. Quarterly revenue and margin dynamics in Ukraine improved substantially on a like-for-like basis. In Kazakhstan, our largest market in the CIS segment, the strong quarterly results also reflect the macroeconomic recovery."Mr. Izosimov continued, "During the last few months we made substantial progress from an organizational standpoint. We streamlined our structure, forming four operating segments ? Russia, Ukraine, CIS and South-East Asia ? with new lean headquarters in Amsterdam. This will allow the operating companies to focus on business development in their markets, while benefiting from being part of a global enterprise. We also strengthened our management team with Henk van Dalen joining us as our Chief Financial Officer. Although return on capital employed has been growing during the previous two quarters the consolidation of Kyivstar brought in additional equity and goodwill affecting the ratio in the second quarter 2010. We aim to maintain ROCE at our targeted level of above 20%.We see significant opportunities for growth in our core markets and we clearly understand the challenges. We are confident in our ability to take advantage of these opportunities to deliver value to our shareholders."Russia - Financial and Operating ResultsThe Russian economy continues to demonstrate signs of recovery as indicated by major macroeconomic parameters. Healthy demand supported by seasonal trends helped us to grow revenues quarter-on-quarter across all of our business segments, including the fixed-line business. In the mobile segment: Increase in usage, coupled with stable pricing, led to a quarterly increase in ARPU of 7.2%Mobile data traffic through USB modems increased more than threefold year-on-year, generating revenue growth of 69%  Mobile OIBDA margin remains strong above 50% In the fixed-line segment:Business segment revenues returned to growth after four quarters of negative dynamics despite competitive pricing pressureNumber of broadband subscriptions up to 1.2 million, a 33.8% increase year-on-yearBroadband revenues up 23.8% year-on-year to 1.3 billion rubles The Company substantially stepped up investments as the Russian telecom market resumed its growth. We continue to focus on the efficiency of our investments, aiming to maintain ROIC at above 30%. The organizational adjustments within the new corporate structure have been completed. The management team, led by Elena Shmatova, will focus on capturing re-emerging growth to ensure superior returns for our shareholders.RUSSIA (RUR millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues61,73859,1364.4%57,3507.7%Adjusted OIBDA29,11430,440-4.4%27,2366.9%Adjusted OIBDA margin, % 47.2%51.5%47.5%SG&A 16,89115,25310.7%15,6647.8%  including Sales & Marketing Expenses5,5944,72618.4%4,96612.6%  including General & Administrative Costs11,29710,5277.3%10,6985.6%SG&A percentage27.4%25.8%27.3%Net income attributable to VimpelCom Ltd.9,96222,295-55.3%11,708-14.9%Capital expenditures7,3643,450113.4%3,70998.5%Free cash flow 11,73128,557-58.9%17,584-33.3%ROIC, %33.0%26.5%33.0%RUSSIA REVENUES* (RUR millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues61,73859,1364.4%57,3507.7%Mobile 51,82549,2315.3%47,8828.2%Fixed-line9,9139,9050.1%9,4684.7%Business segment4,6145,278-12.6%4,4793.0%Wholesale3,6683,21414.1%3,3918.2%Residential 1,6311,41315.4%1,5982.1%RUSSIA OIBDA DEVELOPMENT* (RUR millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA Total29,11430,440-4.4%27,2366.9%Mobile 26,43727,052-2.3%24,5247.8%Fixed-line2,6773,388-21.0%2,712-1.3%Adjusted Total OIBDA margin, %47.2%51.5%47.5%Mobile, % 51.0%54.9%51.2%Fixed-line, % 27.0%34.2%28.6%RUSSIA OPERATING DEVELOPMENT2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Mobile operationsSubscriptions  ('000)50,91249,9711.9%51,254-0.7%including mobile broadband subscriptions1,30076370.4%1,16811.3%MOU, min219.3211.83.5%203.97.6%Adjusted MOU**, min224.1214.54.5%208.47.5%ARPU, RUR329.9322.82.2%307.77.2%ARPU, US$ 10.910.17.9%10.35.8%Fixed-line operationsBroadband subscriptions ('000)1,19989633.8%1,1672.7%Broadband ARPU, RUR358.8392.0-8.5%394.7-9.1%Broadband ARPU, US$11.912.2-2.5%13.2-9.8%*  Mobile and fixed revenues for all periods were recalculated; see definition of reportable segments in Attachment A.** Adjusted MOU is calculated for mobile subscriptions excluding mobile broadband subscriptions using USB modems.Ukraine Financial and Operating Results*In Ukraine, we see improvement in the macroeconomic situation. During the second quarter, we observed less competitive pricing pressure in the mobile segment of the Ukrainian telecom market, which partly helped to offset the negative effect from declining mobile termination rates. In the mobile segment (on a pro-forma basis): Our marketing activities focused on the price sensitive segment resulting in stabilization of our active customer base  ARPU increased quarter-on-quarter by 8.8% driven by further increase in usage, seasonal trends and changes in revenue mix Mobile OIBDA margin was up to 55.1% with substantial improvements in Kyivstar's operational performanceIn the fixed-line segment (on a pro-forma basis): Revenues increased 2.9% year-on-year and 1.4% quarter-on-quarterOIBDA margin decreased to 34.3%, reflecting higher wholesale revenuesSubstantial ongoing investments in FTTB to support strong broadband revenue growth Overall, despite the current positive signs, market uncertainty remains due to ongoing regulatory changes and the dynamic competitive situation. We continue to monitor the market and are ready to take all necessary steps to sustain our leadership position.* Ukraine reporting segment includes operations of Kyivstar, URS and GTI.UKRAINE PRO-FORMA (UAH millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues3,0713,123-1.7%2,8547.6%Adjusted OIBDA1,6631,706-2.5%1,41017.9%Adjusted OIBDA margin, % 54.2%54.6%49.4%SG&A 854867-1.5%906-5.7%  including Sales & Marketing Expenses165175-5.7%1603.1%  including General & Administrative Costs689692-0.4%746-7.6%SG&A percentage27.8%27.8%31.7%Net income attributable to VimpelCom Ltd.339442-23.3%18781.3%Capital expenditures53830477.0%48012.1%Free cash flow 8681,370-36.6%77911.4%UKRAINE ACTUAL (UAH millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues2,461.3390.4530.5%359.2585.2%Adjusted OIBDA Total1,304.476.41607.3%80.71516.4%Net income/(loss) attributable to VimpelCom Ltd.236.1-81.5n/a-62.4n/aUKRAINE PRO-FORMA REVENUES (UAH millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues3,0713,123-1.7%2,8547.6%Mobile 2,9282,984-1.9%2,7137.9%Fixed-line 1431392.9%1411.4%Business segment7379-7.6%74-1.4%Wholesale4748-2.1%470.0%Residential 231291.7%2015.0%UKRAINE PRO-FORMA OIBDA DEVELOPMENT (UAH millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA Total1,6631,706-2.5%1,41017.9%Mobile 1,6141,659-2.7%1,35918.8%Fixed-line49474.3%51-3.9%Adjusted Total OIBDA margin, %54.2%54.6%49.4%Mobile, % 55.1%55.6%50.1%Fixed-line, % 34.3%33.8%36.2%UKRAINE PRO-FORMA OPERATING DEVELOPMENT 2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Mobile operationsSubscriptions  ('000)24,05924,158-0.4%23,8850.7%MOU, min426.7296.244.1%406.35.0%ARPU mobile, UAH39.740.2-1.2%36.58.8%ARPU mobile, US$5.05.3-5.7%4.68.7%Fixed-line operationsBroadband subscriptions ('000)16453209.4%13422.4%Broadband ARPU, UAH42.862.0-31.0%49.8-14.1%Broadband ARPU, US$5.48.1-33.3%6.2-12.9%CIS - Financial and Operating Results*Quarterly highlights:In the CIS, we achieved considerable organic revenue growth both on a year-on-year and quarter-on-quarter basis. Consolidation of operations in Kyrgyzstan further improved our top line. The results from our largest CIS market, Kazakhstan, have shown very strong dynamics, with robust revenue growth and increased OIBDA margin. In Kazakhstan, over 14% revenue growth in local currency both year-on-year and quarter-on-quarter, reflecting signs of economic recovery after more than two years of macroeconomic downturnConsolidated OIBDA margin remains strong in the targeted level of high 40's  Total number of broadband subscriptions increased 141% year-on-year as we continue to actively develop our broadband projects in Kazakhstan, Uzbekistan and ArmeniaCapex for the CIS markets increased substantially both year-on-year and quarter-on-quarter to support our 2G and 3G rollout, affecting free cash flow * CIS operations include operations in Kazakhstan, Uzbekistan, Armenia, Kyrgyzstan, Tajikistan, and Georgia. CIS OPERATIONS (US$ millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues336.2280.120.0%294.814.0%Adjusted OIBDA161.9138.716.7%139.616.0%Adjusted OIBDA margin, % 48.2%49.5%47.4%SG&A90.172.524.3%79.113.9%  including Sales & Marketing Expenses21.415.835.4%18.217.6%  including General & Administrative Costs68.756.721.2%60.912.8%SG&A percentage26.8%25.9%26.8%Net income attributable to VimpelCom Ltd. 28.432.9-13.7%27.14.8%Capital expenditures70.621.7225.3%32.3118.6%Free cash flow 37.585.0-55.9%75.4-50.3%ROIC, %10.1%12.1%9.3%Mobile subscriptions ('000)13,87511,69218.7%13,1255.7%including mobile broadband subscriptions17-n/a1513.3%Broadband fixed-line subscriptions ('000)6527140.7%4447.7%South-East Asia ? OverviewWe continue developing our operations in South-East Asia and remain optimistic regarding the market potential in this region. Our business in Cambodia continues to grow and after the first year of operations we became the 3rd largest player in a nine-player marketWhile our network in Vietnam covers approximately 60% of the population, we had to temporarily slow down further development as we and our JV partner determine the optimal way to finance the expansion of our Vietnamese operationsSEA (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating mobile revenues 5.50.9511.1%4.425.0%Adjusted mobile OIBDA  -8.1-8.5n/a-8.6n/aFor more information on financial and operating data for specific countries, as well as reconciliation of OIBDA, please refer to the supplementary file FinancialOperatingQ22010.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.The Company's management will discuss its second quarter 2010 results during a conference call and slide presentation on September 2, 2010 at 4:30 pm CET, (10:30 am US ET). The call and slide presentation may be accessed via webcast at the following URL address http://www.vimpelcom.com. The conference call replay will be available through September 9, 2010. The slide presentation webcast will also be available for download on VimpelCom's website http://www.vimpelcom.com.VimpelCom consists of telecommunications operators providing voice and data services through a range of wireless, fixed and broadband technologies. The VimpelCom group is headquartered in Amsterdam and has operations in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Georgia, Armenia, Kyrgyzstan, Vietnam and Cambodia, covering territory with a total population of about 345 million. VimpelCom operating companies provide services under the "Beeline" and "Kyivstar" brands. VimpelCom's ADSs are listed on the New York Stock Exchange under the symbol "VIP".  This press release contains "forward-looking statements", as the phrase is defined in Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements include those relating to the expected growth and development of our 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 its Ukrainian operations and other newly-acquired businesses and other factors. 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 registration statement on Form F-4 filed with the U.S. Securities and Exchange Commission (the "SEC"), OJSC VimpelCom's public filings with the SEC, including its Annual Report on Form 20-F for the year ended December 31, 2009, and other public filings made by the Company with the SEC, which risk factors are incorporated herein by reference. 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.- Definitions and tables are attached ?Attachment A: Definitions Adjusted OIBDA is a non-U.S. GAAP financial measure. Adjusted OIBDA, previously referred to as EBITDA or OIBDA by OJSC VimpelCom, is defined as operating income before depreciation, amortization and impairment loss.  Our management uses adjusted OIBDA and adjusted OIBDA margin as supplemental performance measures and believes that adjusted OIBDA and adjusted OIBDA margin provide useful information to investors because they are indicators of the strength and performance of the Company's business operations, including its ability to fund discretionary spending, such as capital expenditures, acquisitions and other investments, as well as indicating its ability to incur and service debt. In addition, the components of adjusted OIBDA include the key revenue and expense items for which the Company's operating managers are responsible and upon which their performance is evaluated.  Adjusted OIBDA also assists management and investors by increasing the comparability of the Company's performance against the performance of other telecommunications companies that provide OIBDA or EBITDA (earnings before interest, taxes, depreciation and amortization) information. This increased comparability is achieved by excluding the potentially inconsistent effects between periods or companies of depreciation, amortization and impairment loss, which items may significantly affect operating income between periods. However, our  adjusted OIBDA results may not be directly comparable to other companies' reported OIBDA or EBITDA results due to variances and adjustments in the components of OIBDA (including our calculation of adjusted OIBDA) or calculation measures.  Additionally, a limitation of adjusted OIBDA's use as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues or the need to replace capital equipment over time. Reconciliation of adjusted OIBDA to net income, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section as well as in the supplementary file FinancialOperatingQ22010.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.Adjusted OIBDA margin is a non-U.S. GAAP financial measure.  We calculate adjusted OIBDA margin as adjusted OIBDA divided by net operating revenues, expressed as a percentage.  Reconciliation of adjusted OIBDA margin to net income as a percentage of net operating revenues, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section as well as in the supplementary file FinancialOperatingQ12010.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.ARPU (Monthly Average Revenue per User) is calculated by dividing service revenue during the relevant period, including roaming revenue and interconnect revenue, but excluding revenue from connection fees, sales of handsets and accessories and other non-service revenue, by the average number of subscriptions during the period and dividing by the number of months in that period. Broadband subscriptions are the customer contracts that served as a basis for revenue generating activity in the three months prior to the measurement date, as a result of activities including monthly internet access using FTTB, xDSL and WiFi technologies as well as mobile internet access  via USB modems using 3G/HSDPA technologies.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.CIS Geographic Segment for the purpose of VimpelCom's reporting includes our operations in the following countries: Kazakhstan, Kyrgyzstan, Uzbekistan, Tajikistan, Armenia and Georgia. Starting from the second quarter 2010 OJSC VimpelCom's operation in Ukraine was included into a separate reporting segment together with Kyivstar and reported on a pro-forma basis for all periods starting from the first quarter of 2010.Free cash flow is a non-U.S. GAAP financial measure and is calculated as net income plus depreciation and amortization minus capital expenditures for the reported period (a quarter or a year, respectively). The Company believes that free cash flow provides useful information to investors because it is an indicator of our company's operational and financial performance and represents our ability to generate cash to maintain or expand our asset base. The Company also refers to free cash flow in determining its dividends. Free cash flow should not be considered in isolation as an alternative to operating cash flow or any other measure of the company's cash flows management. Reconciliation of free cash flow to net income, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section (Attachment C).General and administrative costs (G&A) include salaries and outsourcing costs, including related social contributions required by law; stock price-based compensation expenses; repair and maintenance expenses; rent, including lease payments for base station sites; utilities; other miscellaneous expenses, such as insurance, operating taxes, license fees, and accounting, audit and legal fees.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. SEA Geographic segment ? VimpelCom's operations in South-East Asia, which include operations in Cambodia and  VimpelCom's respective equity in net results of operations of its Vietnamese associate entity GTEL-Mobile JSC ("GTEL-Mobile"). Mobile subscriptions are SIM-cards registered in the system as of a measurement date, users of which generated revenue at any time during the three months prior to the measurement date. This includes revenue coming from any incoming and outgoing calls, subscription fee accruals, debits related to service, outgoing SMS, Multimedia Messaging Service (referred to as MMS), data transmission and receipt sessions, but does not include incoming SMS and MMS sent by VimpelCom or abandoned calls. VimpelCom's total number of mobile subscriptions also includes SIM-cards for use of mobile Internet service via USB modems.Mobile services are wireless voice and data transmission services excluding WiFi.MOU (Monthly Average Minutes of Use per User) is calculated by dividing the total number of minutes of usage for incoming and outgoing calls during the relevant period (excluding guest roamers) by the average number of mobile subscriptions during the period and dividing by the number of months in that period.Net debt is a non-U.S. GAAP financial measure and is calculated as the sum of long-term debt and short-term debt minus cash and cash equivalents. The Company believes that net debt provides useful information to investors because it shows the amount of debt outstanding to be paid after using available cash and cash equivalent, as well as short-term investments. Net debt should not be considered in isolation as an alternative to long-term debt and short-term debt, or any other measure of the company financial position. Reconciliation of net debt to long-term debt and short-term debt, the most directly comparable U.S. GAAP financial measures, is presented below in the reconciliation tables section.Reportable segments ? The Company identified Russia mobile, Russia fixed-line, CIS mobile, CIS fixed-line, Ukraine mobile, Ukraine fixed-line and Asia mobile reporting segments 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. Mobile lines include activities for the providing of wireless telecommunication services to the Company's subscribers; fixed-line includes all activities for providing wireline telecommunication services, broadband and consumer Internet. Revenues and expenses are shown net of intercompany transactions within one geographical segment. Intersegment revenues and expenses between different geographical segments are eliminated at the consolidated level. Starting second quarter of 2010 VimpelCom also started to consider VimpelCom's respective equities in net results of operations of the Company's associates Morefront Holdings Ltd. and GTEL-Mobile as part of operations of Russia mobile and Asia mobile reporting segments, respectively, as well as VimpelCom's DVB-T and DVB-H activities were allocated to Russia fixed-line and Russia mobile segments, respectively. The comparative information was retrospectively adjusted.ROCE is a non-U.S. GAAP financial measure and is calculated as operating income for the last twelve months divided by the sum of net debt, total equity and redeemable noncontrolling interest calculated as an average of the quarter-end balances for the last four quarters. The Company believes that ROCE (return on capital employed) provides useful information to management of our company and investors because it is an indicator of our company's operational performance and represents a return on employed capital at the end of each reported period. Calculation of ROCE on the basis of U.S. GAAP financial measures is presented in the reconciliation tables section below (Attachment C).ROIC is a non-U.S. GAAP financial measure and is calculated as operating income for the last twelve months divided by the sum of property and equipment, licenses, intangible assets, goodwill, software and frequency permissions as reflected on the balance sheet as of the end of the period. The Company believes that ROIC (return on invested capital) provides useful information to management of our company because it is an indicator of our company's operational performance and provides a useful indication of how profitably our company used its resources in each reportable segment over the reported period. Calculation of ROIC on the basis of U.S. GAAP financial measures is presented below in the reconciliation tables section below (Attachment C).Sales and marketing costs (S&M) include marketing, advertising and dealer commissions expenses.Ukraine segment ? Due to change in the reporting structure of VimpelCom and in line with intentions made public by the Company in the previous quarter, Ukraine was considered to be a separate reporting segment apart from the CIS and includes the operations of VimpelCom's indirect Ukrainian subsidiaries Closed Joint Stock Company "Ukrainian Radio Systems" ("URS") and "Golden Telecom" Limited Liability Company ("GT LLC")), as well as Kyivstar.VAS (value added services) includes short messages ("SMS"), multimedia messages ("MMS"), caller number identification, call waiting, data transmission, mobile Internet, downloadable content and other services.Voice revenue ? for the purpose of press-release voice revenue includes voice revenue generated by our subscribers, roaming revenues generated by our subscribers and guest roamers and interconnect revenue. In our annual report and annual report on Form 20-F we report each of these types of revenues separately.Attachment B: VimpelCom Ltd financial statements VimpelCom Ltd Unaudited Condensed Consolidated Statements of IncomeThree months ended June 30,Six months ended June 30,2010200920102009(In thousands of US dollars, except share amounts)Operating revenues:Service revenues$2,584,855$2,109,735$4,787,484$4,052,496Sales of equipment and accessories44,53932,18871,11860,868Other revenues12,2405,33514,1609,171Total operating revenues2,641,6342,147,2584,872,7624,122,535Revenue based tax-(1,754)-(4,016)Net operating revenues2,641,6342,145,5044,872,7624,118,519Operating expenses:Service costs553,022442,2901,054,610882,527Cost of equipment and accessories 47,87930,02274,22958,688Selling, general and administrative expenses766,416573,4711,409,7131,111,012Depreciation376,648325,525729,201634,162Amortization116,54470,182183,238142,783Provision for doubtful accounts12,48512,13931,12930,000Total operating expenses1,872,9941,453,6293,482,1202,859,172Operating income768,640691,8751,390,6421,259,347Other income and expenses:Interest income16,07918,79127,62533,604Net foreign exchange (loss)/gain(126,393)324,056(21,459)(421,707)Interest expense(132,264)(140,616)(273,924)(278,009)Equity in net gain/(loss) of associates11,0884,6977,304(30,615)Other (expenses)/income, net(10,011)555(58,356)(4,918)Total other income and expenses(241,501)207,483(318,810)(701,645)Income before income taxes527,139899,3581,071,832557,702Income tax expense177,958191,429331,007157,329Net income349,181707,929740,825400,373Net income/(loss) attributable to the noncontrolling interest14,4417,40424,607(3,520)Net income attributable to VimpelCom$334,740$700,525$716,218$403,893Basic EPS :Net income attributable to VimpelCom per common share restated$0.28$0.69$0.65$0.38Weighted average common shares outstanding (thousand)1,227,3201,012,4491,121,3941,012,399Diluted EPS :Net income attributable to VimpelCom per common share restated $0.28$0.69$0.65$0.38Weighted average diluted shares (thousand)1,227,7801,013,0011,121,9911,012,505VimpelCom Ltd Unaudited Condensed Consolidated Balance SheetsJune 30,December 31,20102009(In thousands of US dollars, except share amounts)AssetsCurrent assets:Cash and cash equivalents $  2,352,548$       1,446,949Trade accounts receivable, net of allowance for doubtful accounts 516,272392,365Inventory 76,50761,919Deferred income taxes 109,18991,493Input value added tax 128,41796,994Due from related parties 146,483249,631Other current assets381,545627,257Total current assets3,710,9612,966,608Property and equipment, net 6,256,2375,561,569Telecommunications licenses, net 619,162542,597Goodwill 6,960,8403,284,293Other intangible assets, net 1,594,323700,365Software, net577,443448,255Investments in associates 425,726436,767Other assets 798,652792,087Total assets$20,943,344$     14,732,541Liabilities, redeemable noncontrolling interest and equityCurrent liabilities:Accounts payable$    690,168$          545,690Due to employees151,381113,368Due to related parties 4,4219,211Accrued liabilities 863,482315,666Taxes payable344,586212,767Customer advances, net of VAT362,472376,121Customer deposits27,13528,386Short-term debt 1,531,9371,813,141Total current liabilities3,975,5823,414,350Deferred income taxes 830,195596,472Long-term debt 4,800,7015,539,906Other non-current liabilities 177,199164,636Commitments, contingencies and uncertainties --Total liabilities9,783,6779,715,364Redeemable noncontrolling interest515,273508,668Equity:Convertible voting preferred stock (0.001 US$ nominal value per share), 200,000,000 shares authorized; 128,532,000 shares issued and outstanding129129Common stock (0.001 US$ nominal value per share), 1,800,000,000 shares authorized;  1,302,559,308 shares issued (December 31, 2009: 1,025,620,440);  1,291,232,105 shares outstanding (December 31, 2009: 1,014,291,580) 1,3031,026Additional paid-in capital6,291,9211,142,594Retained earnings4,790,7104,074,492Accumulated other comprehensive loss(609,555)(488,277)Treasury stock, at cost, 11,327,203  shares of common stock (December 31, 2009: 11,328,860)(223,406)(223,421)Total VimpelCom shareholders' equity10,251,1024,506,543Noncontrolling interest393,2921,966Total equity10,644,3944,508,509Total liabilities, redeemable noncontrolling interest and equity$20,943,344$     14,732,541VimpelCom Ltd Unaudited Condensed Consolidated Statements of Cash FlowsSix months ended June 30,20102009(In thousands of US dollars)Operating activitiesNet cash provided by operating activities1,804,2431,697,798Investing activitiesPurchases of property and equipment(380,308)(370,882)Purchases of intangible assets(11,298)(11,913)Purchases of software (88,587)(109,401)Proceeds from sale of property, plant and equipment1,396-Cash increase from acquisition of Kyivstar 167,176-Cash increase due to Sky Mobile consolidation4,702-Loan granted (5,048)-Loan receivable repayment22,910-Proceeds from withdrawal of deposits377,044-Purchases of other assets, net(13,216)(18,280)Net cash provided by/(used in) investing activities74,771(510,476)Financing activitiesProceeds from bank and other loans270,254589,473Repayments of bank and other loans(1,158,204)(980,932)Payments of fees in respect of debt issues(1,847)(46,547)Share capital issued and paid905-Net proceeds from employee stock options271,852Purchase of noncontrolling interest in consolidated subsidiaries(2,294)(441)Payment of dividends (2,049)-Payment of dividends to noncontrolling interest(34,517)(930)Net cash used in financing activities(927,725)(437,525)Effect of exchange rate changes on cash and cash equivalents(45,690)(15,219)Net  increase in cash and cash equivalents905,599734,578Cash and cash equivalents at beginning of period1,446,949914,683Cash and cash equivalents at end of period$      2,352,548$       1,649,261VimpelCom Ltd Unaudited Condensed Consolidated Statements of Cash Flows (Continued)Six months ended June 30,20102009(In thousands of US dollars)Supplemental cash flow informationCash paid during the period:Income tax$         277,059$          180,595Interest295,719285,070Non-cash activities:Accounts payable for property, equipment and  other long-lived assets214,485165,295Attachment C: Reconciliation Tables (Unaudited)Reconciliation of Consolidated Adjusted OIBDA of VimpelCom(In millions of US$)2Q 102Q 091Q 10Adjusted OIBDA1,261.8 1,087.6 1,041.2 Depreciation(376.7)(325.5)(352.5)Amortization(116.5)(70.2)(66.7)Operating income768.6 691.9 622.0 Interest income16.1 18.8 11.5 Net foreign exchange (loss)/gain(126.4)324.0 104.9 Interest expense(132.3)(140.6)(141.7)Equity in net gain/(loss) of associates 11.1 4.7 (3.8)Other (expense)/income, net(10.0)0.5 (48.3)Income tax expense(178.0)(191.4)(153.0)Net income349.1 707.9 391.6 Reconciliation of Consolidated Adjusted OIBDA Margin of VimpelCom2Q 102Q 091Q 10Adjusted OIBDA margin47.8%50.7%46.7%Less: Depreciation as a percentage of net operating revenues(14.3%)(15.2%)(15.8%)Less: Amortization as a percentage of net operating revenues(4.4%)(3.3%)(3.0%)Operating income as a percentage of net operating revenues29.1%32.2%27.9%Interest income0.6%0.9%0.5%Net foreign exchange (loss)/gain(4.8%)15.1%4.7%Interest expense(5.0%)(6.6%)(6.4%)Equity in net gain/(loss) of associates 0.4%0.2%(0.2%)Other (expense)/income, net(0.4%)0.1%(2.0%)Income tax expense(6.7%)(8.9%)(6.9%)Net income13.2%33.0%17.6%Reconciliation of Free Cash Flow(In millions of US$)Russia,  Free Cash Flow2Q 102Q 091Q 10Free cash flow392 887 587 Net income attributable to VIP Ltd.332 691 391 Depreciation262 264 279 Amortization41 39 41 Capital expenditures(243)(107)(124)Ukraine,  Free Cash Flow, Actual2Q 102Q 091Q 10Free cash flow79.05.31.1Net income attributable to VIP Ltd.29.8(10.5)(7.8)Depreciation54.311.910.6Amortization53.56.84.3Capital expenditures(58.6)(2.9)(6.0)CIS,  Free Cash Flow2Q 102Q 091Q 10Free cash flow37.585.075.4Net income attributable to VIP Ltd.28.432.927.1Depreciation58.149.760.0Amortization21.624.120.6Capital expenditures(70.6)(21.7)(32.3)Reconciliation of Free Cash Flow(In millions of local currencies)Russia,  Free Cash Flow, RUR M2Q 102Q 091Q 10Free cash flow11,731 28,557 17,584 Net income attributable to VIP Ltd.9,962 22,295 11,708 Depreciation7,902 8,458 8,346 Amortization1,230 1,253 1,239 Capital expenditures(7,363)(3,449)(3,709)Ukraine,  Free Cash Flow, Actual, UAH million2Q 102Q 091Q 10Free cash flow626.4 39.2 9.4 Net income attributable to VIP Ltd.236.1 (81.5)(62.4)Depreciation459.4 90.5 85.3 Amortization395.0 52.5 34.1 Capital expenditures(464.1)(22.3)(47.6)Reconciliation of VimpelCom Consolidated ROCE(In millions of US$)VimpelCom Ltd. Actual ROCE, %2Q '083Q '084Q '081Q '092Q '093Q '094Q '091Q '102Q '10Consolidated operating income LTM 2,6432,8592,5362,4022,3572,1792,5782,6332,710Net debt6,7727,2767,5286,7296,3255,5475,9065,1183,980Long - term debt6,5036,2556,5345,3075,7325,5935,5405,2924,801Short-term debt1,2481,7481,9092,3882,2422,4761,8131,3561,532Cash and cash equivalents (979)(727)(915)(966)(1,649)(2,522)(1,447)(1,530)(2,353)Total equity6,4365,6394,1403,1464,0384,5694,5095,37610,644Redeemable noncontrolling interest0470470500500505509512515Total capital employed (CE)13,20813,38512,13810,37510,86310,62110,92411,00615,139Average capital employed12,27711,69010,99910,69610,85411,923ROCE consolidated19.6%20.2%19.8%24.1%24.3%22.7%Reconciliation of ROICRussia,  ROIC, % (based on RUR millions)2Q 102Q 091Q 10Operating income LTM76,048 65,802 76,795          Property and equipment119,880 131,573 120,740          Licenses5,252 7,615 5,740          Intangible assets13,491 16,274 14,189          Goodwill78,897 78,896 78,897          Software9,479 10,385 9,976          Frequency permissions3,172 3,143 3,143 Total Invested Capital230,171 247,886 232,685 ROIC, %33.0%26.5%33.0%CIS,  ROIC, % (based on US$ millions)2Q 102Q 091Q 10Operating income LTM260.7 285.3 243.3          Property and equipment1,117.9 1,132.3 1,102.7          Licenses233.8 274.7 247.4          Intangible assets172.3 194.7 178.3          Goodwill988.9 673.8 987.8          Software76.6 87.9 81.7          Frequency permissions0.0 2.8 4.6 Total Invested Capital2,590.5 2,366.2 2,602.5 ROIC, %10.1%12.1%9.3%Attachment D:  Capex Development  CAPEX (in US$ millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Total capex 381.4155.3145.6%179.3112.7%Russia243.4107.1127.3%124.196.1%Ukraine58.62.91920.7%6.0876.7%Other CIS70.621.7225.3%32.3118.6%SEA8.823.6-62.7%16.9-47.9%Attachment E: Financial and Operational Highlights in Functional Currencies UkraineUKRAINE ACTUAL (UAH millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues2,461.3390.4530.5%359.2585.2%Adjusted OIBDA1,304.476.41607.3%80.71516.4%Adjusted OIBDA margin, % 53.0%19.6%22.5%SG&A 697.5149.3367.2%147.0374.5%  including Sales & Marketing Expenses134.930.2346.7%26.7405.2%  including General & Administrative Costs562.6119.1372.4%120.3367.7%SG&A percentage28.3%38.2%40.9%Net income/(loss) attributable to VimpelCom Ltd.236.1-81.5n/a-62.4n/aCapital expenditures464.122.31981.2%47.6875.0%Free cash flow 626.439.21498.0%9.46563.8%UKRAINE ACTUAL REVENUES (UAH millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues2,461.3390.4530.5%359.2585.2%Mobile 2,309.0218.7955.8%183.01161.7%Fixed-line 152.3171.7-11.3%176.2-13.6%Business segment72.878.9-7.7%74.0-1.6%Wholesale56.880.7-29.6%81.7-30.5%Residential 22.712.187.6%20.510.7%UKRAINE ACTUAL ADJUSTED OIBDA DEVELOPMENT (UAH mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA Total1,304.476.41607.3%80.71516.4%Mobile 1,255.127.74431.0%28.34335.0%Fixed-line49.348.71.2%52.4-5.9%Adjusted Total OIBDA margin, %53.0%19.6%22.5%Mobile, % 54.4%12.7%15.5%Fixed-line, % 32.4%28.4%29.7%CIS - Revenues DevelopmentKAZAKHSTAN (KZT mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues27,05423,67914.3%23,55514.9%Mobile26,50323,33113.6%23,07914.8%Fixed-line55134858.3%47615.8%ARMENIA (AMD mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues17,07318,253-6.5%16,0166.6%Mobile6,7017,310-8.3%5,78715.8%Fixed-line10,37210,943-5.2%10,2291.4%UZBEKISTAN (US$ mln)*2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues51.452.6-2.3%45.313.5%Mobile48.949.5-1.2%42.914.0%Fixed-line2.53.1-19.4%2.44.2%TAJIKISTAN (US$ mln)*2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues20.114.340.6%14.835.8%Mobile14.914.34.2%13.312.0%Fixed-line5.2-n/a1.5246.7%GEORGIA (GEL mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues20.811.876.3%18.810.6%Mobile20.011.869.5%18.39.3%Fixed-line0.8-n/a0.560.0%KYRGYZSTAN (KGS mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Mobile net operating revenues1,261-n/a1,13810.8%CIS REVENUES** (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues336.2280.120.0%294.814.0%Mobile297.4245.321.2%260.814.0%Fixed-line38.834.811.5%34.014.1%* US$ is the functional currency in Uzbekistan and Tajikistan. ** Mobile and fixed revenues for all periods were recalculated ? please see definition of reportable segments in Attachment A.CIS ? Adjusted OIBDA DevelopmentKAZAKHSTAN (KZT mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total 15,52612,85620.8%13,06918.8%Mobile15,40612,91019.3%13,00818.4%Fixed-line120-54n/a6196.7%Adjusted OIBDA margin, % 57.4%54.3%55.5%ARMENIA (AMD mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total 7,3319,216-20.5%7,348-0.2%Mobile2,7113,434-21.1%2,37714.1%Fixed-line4,6205,782-20.1%4,971-7.1%Adjusted OIBDA margin, % 42.9%50.5%45.9%UZBEKISTAN (US$ mln)*2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total 20.126.9-25.3%19.62.6%Mobile19.225.7-25.3%18.63.2%Fixed-line0.91.2-25.0%1.0-10.0%Adjusted OIBDA margin, % 39.1%51.1%43.3%TAJIKISTAN (US$ mln)*2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total6.75.424.1%4.452.3%Mobile5.75.45.6%4.139.0%Fixed-line1.0-n/a0.3233.3%Adjusted OIBDA margin, % 33.3%37.8%29.7%GEORGIA (GEL mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA Total2.70.21250%2.035.0%Mobile2.660.21230%1.9337.8%Fixed-line0.05-n/a0.0366.7%Adjusted OIBDA margin, % 13.0%1.7%10.6%KYRGYZSTAN (KGS mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted Mobile OIBDA 589-n/a42638.3%Adjusted Mobile OIBDA margin, % 46.7%-37.4%CIS OIBDA (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total 161.9138.716.7%139.616.0%Mobile147.6123.020.0%125.417.7%Fixed-line14.315.7-8.9%14.20.7%Adjusted OIBDA margin, % 48.2%49.5%47.4%* US$ is the functional currency in Uzbekistan and Tajikistan.CIS - Operating HighlightsKAZAKHSTAN2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Mobile subscriptions ('000)6,3396,635-4.5%6,0624.6%MOU, min125.190.737.9%102.222.4%ARPU mobile, US$9.67.921.5%8.414.3%ARPU mobile, (KZT)1,4111,18718.9%1,26411.6%Broadband internet subscriptions ('000)4.30.31333.3%2.759.3%ARMENIA2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Mobile subscriptions ('000)56748616.7%5493.3%including mobile broadband subscriptions6.6-n/a6.8-2.9%MOU, min270.1238.413.3%345.6-21.8%ARPU mobile, US$10.313.6-24.3%9.014.4%ARPU mobile, (AMD)3,9755,035-21.1%3,47814.3%Broadband internet subscriptions ('000)49.719.2158.9%31.259.3%UZBEKISTAN2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Mobile subscriptions ('000)3,9973,60510.9%3,48914.6%including mobile broadband subscriptions10.5-n/a7.736.4%MOU, min383.0225.669.8%369.23.7%ARPU mobile, US$4.14.7-12.8%4.2-2.4%Broadband internet subscriptions ('000)10.77.640.8%10.07.0%TAJIKISTAN2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Mobile subscriptions ('000)78467715.8%820-4.4%MOU, min167.6173.1-3.2%157.96.1%ARPU mobile, US$6.16.9-11.6%5.68.9%GEORGIA2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Mobile subscriptions ('000)46628961.2%4318.1%MOU, min140.5123.114.1%125.012.4%ARPU mobile, US$7.98.8-10.2%7.55.3%ARPU mobile, (GEL)14.514.50.0%13.75.8%KYRGYZSTAN2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Mobile subscriptions ('000)1,722-n/a1,774-2.9%MOU, min235.9-n/a193.921.7%ARPU mobile, US$5.3-n/a4.712.8%ARPU mobile, (KGS)240-n/a20815.4%* We no longer provide information on subscriptions market share, because different churn policies used by mobile service providers result in reported subscriptions market share figures that are not representative.Attachment F: Key Financial Results in US Dollars Russia RUSSIA (US$ millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues2,0421,83811.1%1,9196.4%Adjusted OIBDA9649481.7%9115.8%Adjusted OIBDA margin, % 47.2%51.6%47.5%SG&A 55847417.7%5246.5%  including Sales & Marketing Expenses18514626.7%16611.4%  including General & Administrative Costs37332813.7%3584.2%SG&A percentage27.3%25.8%27.3%Net income attributable to VimpelCom Ltd332691-52.0%391-15.1%Capital expenditures243107127.1%12496.0%Free cash flow 392887-55.8%587-33.2%ROIC (based on RUR), %33.0%26.5%33.0%RUSSIA REVENUES (US$ millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues2,0421,83811.1%1,9196.4%Mobile revenues1,7141,53112.0%1,6027.0%Fixed-line revenues 3283076.8%3173.5%Business segment153164-6.7%1502.0%Wholesale1219922.2%1146.1%Residential 544422.7%531.9%RUSSIA ADJUSTED OIBDA DEVELOPMENT (US$ millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total9649481.7%9115.8%Mobile8758423.9%8206.7%Fixed-line89105-15.2%91-2.2%Adjusted total OIBDA margin, %47.2%51.6%47.5%Mobile, %51.1%55.0%51.2%Fixed-line, % 27.1%34.2%28.7%* Please find information on respective operating income amounts in the supplementary file FinancialOperatingQ12010.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.Ukraine UKRAINE ACTUAL (US$ millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues310.651.1507.8%44.9591.8%Adjusted OIBDA164.610.01546.0%10.11529.7%Adjusted OIBDA margin, % 53.0%19.6%22.5%SG&A 88.119.5351.8%18.3381.4%  including Sales & Marketing Expenses17.03.8347.4%3.3415.2%  including General & Administrative Costs71.115.7352.9%15.0374.0%SG&A percentage28.4%38.2%40.8%Net income (loss) attributable to VimpelCom29.8-10.5-383.8%-7.8-482.1%Capital expenditures58.62.91920.7%6.0876.7%Free cash flow 79.05.31390.6%1.17081.8%UKRAINE ACTUAL REVENUES (US$ millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues310.651.1507.8%44.9591.8%Mobile 291.428.6918.9%22.91172.5%Fixed-line 19.222.5-14.7%22.0-12.7%Business segment9.210.2-9.8%9.4-2.1%Wholesale11.010.72.8%10.010.0%Residential 2.91.681.3%2.611.5%UKRAINE ACTUAL ADJUSTED OIBDA DEVELOPMENT (US$ millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA Total164.610.01546.0%10.11529.7%Mobile 158.43.84068.4%3.54425.7%Fixed-line6.26.20.0%6.6-6.1%Adjusted Total OIBDA margin, %53.0%19.6%22.5%Mobile, % 54.4%13.3%15.3%Fixed-line, % 32.3%27.6%30.0%CIS Revenues in US$KAZAKHSTAN (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues184.3157.117.3%159.515.5%Mobile180.5154.816.6%156.315.5%Fixed-line3.82.365.2%3.218.8%ARMENIA (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues44.549.2-9.6%41.76.7%Mobile17.519.7-11.2%15.115.9%Fixed-line27.029.5-8.5%26.61.5%UZBEKISTAN (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues51.452.6-2.3%45.313.5%Mobile48.949.5-1.2%42.914.0%Fixed-line2.53.1-19.4%2.44.2%TAJIKISTAN (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues20.114.340.6%14.835.8%Mobile14.914.34.2%13.312.0%Fixed-line5.2-n/a1.5246.7%GEORGIA (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues11.57.162.0%10.95.5%Mobile11.17.156.3%10.64.7%Fixed-line0.4-n/a0.333.3%KYRGYZSTAN (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Mobile net operating revenues27.5-n/a25.57.8%CIS Adjusted OIBDA in US$KAZAKHSTAN (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total 105.785.224.1%88.519.4%Mobile104.985.622.5%88.119.1%Fixed-line0.8-0.4n/a0.4100.0%Adjusted OIBDA margin, % 57.4%54.2%55.5%ARMENIA (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total 19.124.8-23.0%19.10.0%Mobile7.19.2-22.8%6.214.5%Fixed12.015.6-23.1%12.9-7.0%Adjusted OIBDA margin, % 42.9%50.4%45.8%UZBEKISTAN (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total 20.126.9-25.3%19.62.6%Mobile19.225.7-25.3%18.63.2%Fixed-line0.91.2-25.0%1.0-10.0%OIBDA Margin, % 39.1%51.1%43.3%TAJIKISTAN (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total6.75.424.1%4.452.3%Mobile5.75.45.6%4.139.0%Fixed-line1.0-n/a0.3233.3%Adjusted OIBDA margin, % 33.3%37.8%29.7%GEORGIA (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted OIBDA total1.50.11400.0%1.136.4%Mobile1.50.11400.0%1.136.4%Fixed-line0.03-n/a0.0250.0%Adjusted OIBDA margin, % 13.0%1.4%10.1%KYRGYZSTAN (US$ mln)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Adjusted mobile OIBDA  12.8-n/a9.534.7%Adjusted mobile OIBDA margin, % 46.5%-37.3%* Please find information on respective operating income amounts in the supplementary file FinancialOperatingQ22010.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.Attachment G: VimpelCom Ltd Financial and Operational Highlights on Pro-Forma BasisCONSOLIDATED OPERATIONS  (US$, millions)2Q 102Q 092Q 10/2Q 091Q 102Q 10/1Q 10Net operating revenues2,716.12,494.18.9%2,535.07.1%Adjusted OIBDA1,307.01,300.60.5%1,207.78.2%Adjusted OIBDA margin, % 48.1%52.1%47.6%SG&A786.2666.817.9%737.96.5%  including HQ cost 19.9n/a10.884.3%SG&A percentage28.9%26.7%29.1%Net income attributable to VimpelCom Ltd.347.7768.9-54.8%415.4-16.3%Operating cash flow1,029.2944.09.0%959.87.2%Capital expenditures445.3235.189.4%233.590.7%Attachment H: Average Rates of Functional Currencies to USD*Functional Currency/1 US$1Q 092Q 093Q 094Q 091Q 102Q 10Russia RUR33.9332.2131.3329.4729.8930.24KazakhstanKZT138.85150.47150.75149.77147.68146.81UkraineUAH7.707.667.827.997.997.92ArmeniaAMD325.11370.46372.66384.40384.26384.49GeorgiaGEL1.671.661.681.681.721.80KyrgyzstanKGS----44.5545.75Functional currencies in Tajikistan, Uzbekistan and Cambodia are US dollars.SOURCE VimpelCom LtdFor further information: Alexey Subbotin of VimpelCom, +31 (0)20 3012240 (Amsterdam), +7-495- 954-7888, Investor_Relations@vimpelcom.com; or Mateo Millett, FD, +1-617 897-1533, mateo.millett@fd.com