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 March 2010

Commission File Number 1-14522

 

 

Open Joint Stock Company “Vimpel-Communications”

(Translation of registrant’s name into English)

 

 

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

(Address of principal executive offices)

 

 

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

Form 20-F  x            Form 40-F  ¨

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

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

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

Yes  ¨            No  x

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

 

 

 

SIGNATURES

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

 

		OPEN JOINT STOCK COMPANY
		“VIMPEL-COMMUNICATIONS”
		(Registrant)
Date: March 18, 2010
		By:		/S/    ALEXANDER Y. TORBAKHOV
		Name:		Alexander Y. Torbakhov
		Title:		General Director

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Moscow and New York (March 18, 2010) - Open Joint Stock Company “Vimpel-Communications” (“VimpelCom” or the “Company”) (NYSE: VIP), a leading international provider of telecommunications services operating in Russia, the Commonwealth of Independent States (CIS) and South-East Asia, today announced its operating and financial results for the quarter and year ended December 31, 2009.

The Company changed its reporting currency from the US dollar to the Russian ruble effective as of January 1, 2009. The Company presented certain financial information for the first three quarters of 2009 in Russian rubles.

Following the plans announced in October 2009 by the Company’s two strategic shareholders to combine their holdings under a new company, VimpelCom Ltd., and in connection with regulatory filings relating to that transaction, the Company decided to change its reporting currency to the US dollar. The audited consolidated financial statements for the year ended December 31, 2009 are prepared in US dollars. Amounts included in quarterly financial statements for the first three quarters of 2009 were recast using the current rate method of currency translation as though the US dollar was the reporting currency in those periods. Financial information in this press release is presented in US dollars for the consolidated Group and in functional currencies for Russia and the CIS countries.

Although Georgia is no longer a member of the CIS, consistent with our historical reporting practice we continue to include Georgia in our CIS reporting segment.

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2009 Highlights and Recent Developments

Operational

 

•

3.6 million new mobile subscribers, with the total subscriber base up to 64.6 million

 

•

2.3 million broadband subscribers, an 85% growth year-on-year

 

•

3G networks rollout in Russia on schedule, all current license requirements fulfilled

 

•

Launch of operations in Cambodia and Vietnam under Beeline brand

Financial

 

•

Revenues of $8.7 billion and OIBDA* of $4.3 billion, 14% and 12% down year-on-year, respectively. In ruble terms, revenues of 275.2 billion and OIBDA of 135.2 billion, 10% and 12% increase year-on-year

 

•

Full-year consolidated ruble revenues in Russia increased 10% year-on-year and reached 235.4 billion rubles

 

•

Substantially improved consolidated fixed and mobile margin of 49.1% compared to 48.0% in 2008

 

•

Free cash flow amounted to $2.7 billion after $0.8 billion spent on Capex

 

•

Net income attributable to VimpelCom of $1.1 billion or 114% increase year-on-year

 

•

Basic EPS up 110% year-on-year to $21.71 ($1.09 per ADS)

 

•

Net debt decreased to $5.9 billion bringing the Net Debt/OIBDA ratio to 1.4

Other

 

•

Interim dividend of $0.32 per ADS was paid out

•

Strategic shareholders initiated the process of combining their stakes in VimpelCom and Kyivstar in a new company, VimpelCom Ltd., and launched a public exchange offer for all of VimpelCom’s outstanding shares

 

*	Here and thereafter refers to adjusted OIBDA (See definition)

 

2

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Commenting on the performance of the Company, Boris Nemsic, Chief Executive Officer of VimpelCom, said, “By the end of 2008, in the depths of the global macroeconomic crisis, we took decisive actions to address the market uncertainties. We committed to our shareholders that we would preserve cash, improve liquidity, control costs, and integrate the newly acquired fixed-line business, all while maintaining our leading market positions. I am very pleased that we have delivered on each of these commitments, which is clearly demonstrated by our full-year results.

The growth in our mobile subscriber base to over 64.6 million customers was good especially in light of the high penetration in our markets. Moreover, subscriber growth did not come at the expense of subscriber quality and profitability, as we improved our consolidated fixed and mobile OIBDA margins to more than 49% on average for the year. Furthermore, our focus on operational excellence and profitability resulted in a record $3.5 billion of operational cash flow, allowing us to substantially improve our liquidity and pay dividends. We paid out a dividend of $0.32 per ADS based on the Company’s operating results for the first nine months of 2009, while substantially reducing our net debt to a comfortably manageable $5.9 billion, a 22% reduction compared to December 31, 2008.

Finally, our strategic shareholders recently took another important step toward positioning VimpelCom as a global player in the telecommunications industry by launching an exchange offer through VimpelCom Ltd., which if completed, will combine VimpelCom with Kyivstar, the largest mobile operator in Ukraine. We believe that this transaction will support our strategic objectives and create value for the Company’s stakeholders. The Company’s Board of Directors unanimously recommended that the Company’s shareholders and holders of American depositary shares exchange their Company shares and ADSs for VimpelCom Ltd. depositary shares in the exchange offer launched by VimpelCom Ltd”.

 

3

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Key Consolidated Financial and Operating Results*

 

CONSOLIDATED OPERATIONS (US$, millions)		4Q‘09			4Q‘08			4Q‘09/ 4Q ‘08			3Q‘09			4Q‘09/ 3Q ‘09			2009			2008**			2009/ 2008
Net operating revenues		2,309			2,555			-9.6	%		2,276			1.4	%		8,703			10,117			-14.0	%
Adjusted OIBDA		1,088			1,124			-3.2	%		1,148			-5.2	%		4,272			4,860			-12.1	%
Adjusted OIBDA margin, %		47.1	%		44.0	%					50.4	%					49.1	%		48.0	%
Operating income		608			208			192.3	%		711			-14.5	%		2,578			2,536			1.7	%
Operating income margin, %		26.3	%		8.1	%					31.2	%					29.6	%		25.1	%
SG&A		680			787			-13.6	%		599			13.5	%		2,390			2,839			-15.8	%
including Sales & Marketing Expenses		218			285			-23.5	%		184			18.5	%		727			929			-21.7	%
including General & Administrative Costs		462			502			-8.0	%		415			11.3	%		1,663			1,910			-12.9	%
SG&A percentage		29.4	%		30.8	%					26.3	%					27.5	%		28.1	%
Net income (loss) attributable to VimpelCom		283			-816			n/a			433			-34.6	%		1,122			524			114.1	%
Net income (loss) attributable to VimpelCom per common share, basic, (US$)		5.47			-16.12						8.36						21.71			10.32
Net income (loss) attributable to VimpelCom per ADS equivalent, basic, (US$)		0.27			-0.81						0.42						1.09			0.52
Capital expenditures		422.7			855.5			-50.6	%		123.2			243.1	%		814.1			2,570.8			-68.3	%
Mobile subscribers (‘000) ***		64,596			61,029			5.8	%		65,358			-1.2	%		64,596			61,029			5.8	%
Broadband subscribers (‘000)		2,257			1,221			84.8	%		1,930			16.9	%		2,257			1,221			84.8	%

 

*	See definitions in Attachment A. References to “year-on-year” are to comparisons of 4Q09 vs. 4Q08, while references to “quarter-on-quarter” are to 4Q09 vs. 3Q09.

**	2008 results include only 10 months of consolidation of Golden Telecom’s operations.

***	In 3Q09 we reported 95 thousands as active subscribers in Cambodia which was calculated on a one month basis. Starting from 4Q09 we will report active subscriber base in Cambodia calculated on a three month basis.

 

Net operating revenues 4Q ‘09**** (US$ millions)		Russia		CIS		SEA		Eliminations		Total
Mobile business		1,671		284		2		-2		1,955
Fixed-line business		458		67		0		-18		507
Eliminations		-133		-9		0		-11		-153
Total net operating revenue		1,996		342		2		-31		2,309

 

****	Due to the increasing integration between different parts of our business, we include inter-company transactions in the reported revenues of geographic and business segments and indicate the amount of inter-company eliminations within and between the segments.

 

4

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The quarterly net operating revenues increased by 1.4% quarter-on-quarter, reflecting seasonality supported by favorable exchange rate dynamics. Full-year revenues amounted to $8.7 billion, demonstrating the robustness of our core business and our ability to maintain our market positions.

Our continuous efforts on cost optimization, price rebalancing and streamlining integration resulted in more than one percentage point improvement of the full-year consolidated fixed and mobile OIBDA margin, which reached 49.1%. The fourth quarter OIBDA margin, despite being seasonally affected, showed substantial improvement when compared to the fourth quarter of the previous year.

A consistent focus on cash generation and working capital optimization helped us to achieve a record $3.5 billion of operational cash flow, which is $100 million higher than reported a year ago.

Capital expenditures in 2009 were significantly lower than in the previous year, utilizing massive investments made in 2007-2008, including the acquisition of Golden Telecom’s networks, and meeting the overall level of demand throughout 2009. In 2010, we intend to increase our capital expenditures compared with the 2009 level and plan to invest approximately 15-20% of our revenues.

During the fourth quarter we repaid in total $742 million of debt including a $315 million bond buy-back we completed in October 2009. Our net debt declined by $1.6 billion in 2009 and reached $5.9 billion at the end of the year.

Our net income attributable to VimpelCom amounted to $283 million for the fourth quarter and $1.1 billion for the full year 2009, which is 114.1% more than we reported in 2008.

 

5

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Russia - Financial and Operating Results

 

RUSSIA (RUR millions)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Net operating revenues		58,819			58,809			0.0	%		61,211			-3.9	%		235,438			214,136			9.9	%
Adjusted OIBDA		27,725			25,849			7.3	%		30,951			-10.4	%		116,181			104,426			11.3	%
Adjusted OIBDA margin, %		47.1	%		44.0	%					50.6	%					49.3	%		48.8	%
Operating income		17,393			7,847			121.7	%		20,724			-16.1	%		76,410			60,489			26.3	%
Operating income margin, %		29.6	%		13.3	%					33.9	%					32.5	%		28.2	%
SG&A		17,033			18,198			-6.4	%		15,644			8.9	%		63,030			59,424			6.1	%
including Sales & Marketing Expenses		5,862			6,706			-12.6	%		4,940			18.7	%		20,013			19,720			1.5	%
including General & Administrative Costs		11,171			11,492			-2.8	%		10,704			4.4	%		43,017			39,704			8.3	%
SG&A percentage		29.0	%		30.9	%					25.6	%					26.8	%		27.8	%
Net income (loss) attributable to VimpelCom		9,267			-12,132			n/a			13,754			-32.6	%		38,133			19,713			93.4	%

Our quarterly net operating revenues in Russia amounted to 58.8 billion rubles. The quarterly dynamics reflect seasonality, with revenues in local currency declining by 3.9% quarter-on-quarter. Overall, our full-year 2009 consolidated fixed and mobile revenues in Russia increased by 9.9% in ruble terms, when compared to 2008.

In the mobile segment, our quarterly ruble revenues remained flat when compared to the fourth quarter of 2008. Full year mobile revenues were up 7.0%. We also saw an increase in revenues from value added services driven by demand for infotainment and mobile data. Minutes of use increased in the past three quarters supporting our view that voice traffic continues to be one of the key drivers of revenue growth. In our marketing activities we aim to maintain pricing discipline and be competitive in every segment of the mobile market.

We achieved a mobile OIBDA margin of 49.3% in the fourth quarter of 2009, which is 2.5 percentage points higher than reported in the fourth quarter of 2008. In ruble terms, our quarterly mobile OIBDA reached 24.3 billion rubles, a 6.0% increase year-on-year.

Our quarterly fixed-line revenues increased by 12.7% year-on-year in ruble terms reflecting the sustainability of our diverse revenue base. To the extent that we will begin to see economic recovery in 2010, we expect to see revenue growth in the corporate segment and increasing demand for data from both corporate and residential customers.

 

6

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Fixed-line OIBDA margin, although slightly down quarter-on-quarter, increased on a full-year basis from 24.1% to 27.9%. In ruble terms, in 2009 the full-year fixed-line OIBDA reached 14.9 billion rubles, a 73.2%* increase as compared to 2008.

In the fourth quarter of 2009, our total number of residential broadband subscribers in Russia, including FTTB and mobile broadband, exceeded 2.1 million, a 78.6% increase year-on-year and a 15.2% increase quarter-on-quarter. Revenues from residential broadband were up 151.0% year-on-year.

 

RUSSIA REVENUES (RUR millions)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Net operating revenues		58,819		58,809		0.0	%		61,211		-3.9	%		235,438		214,136		9.9	%
Mobile		49,250		48,987		0.5	%		51,502		-4.4	%		195,816		183,036		7.0	%
Fixed-line		13,485		11,962		12.7	%		13,583		-0.7	%		53,383		35,730		49.4	%
Eliminations		-3,916		-2,140					-3,874					-13,761		-4,630

 

RUSSIA OIBDA DEVELOPMENT (RUR millions)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA Total		27,725			25,849			7.3	%		30,951			-10.4	%		116,181			104,428			11.3	%
Mobile		24,286			22,902			6.0	%		27,360			-11.2	%		101,293			95,834			5.7	%
Fixed-line		3,439			2,947			16.7	%		3,591			-4.2	%		14,888			8,594			73.2	%
Adjusted Total OIBDA margin, %		47.1	%		44.0	%					50.6	%					49.3	%		48.8	%
Mobile, %		49.3	%		46.8	%					53.1	%					51.7	%		52.4	%
Fixed-line, %		25.5	%		24.6	%					26.4	%					27.9	%		24.1	%

 

RUSSIA OPERATING DEVELOPMENT		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile subscribers (‘000)		50,886		47,677		6.7	%		51,028		-0.3	%		50,886		47,677		6.7	%
MOU, min		217.7		227.8		-4.4	%		213.6		1.9	%		211.4		219.1		-3.5	%
ARPU mobile, US$		10.8		12.5		-13.6	%		10.6		1.9	%		10.1		13.9		-27.3	%
ARPU mobile, RUR		316.9		340.6		-7.0	%		331.8		-4.5	%		319.6		344.4		-7.2	%
Broadband subscribers (‘000)		2,111		1,182		78.6	%		1,833		15.2	%		2,111		1,182		78.6	%

 

*	2008 results include only 10 months of consolidation of Golden Telecom’s operations.

 

7

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CIS - Financial and Operating Results

 

CIS OPERATIONS (US$ millions)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Net operating revenues		341.6			419.6			-18.6	%		353.6			-3.4	%		1,358.9			1,564.3			-13.1	%
Adjusted OIBDA		154.7			179.3			-13.7	%		169.8			-8.9	%		626.7			652.6			-4.0	%
Adjusted OIBDA margin, %		45.3	%		42.7	%					48.0	%					46.1	%		41.7	%
Operating income		28.5			-38.7			n/a			65.6			-56.6	%		203.9			105.8			92.7	%
Operating income margin, %		8.3	%		-9.2	%					18.6	%					15.0	%		6.8	%
SG&A		94.1			116.9			-19.5	%		91.0			3.4	%		365.9			448.0			-18.3	%
including Sales & Marketing Expenses		24.9			39.5			-37.0	%		24.6			1.2	%		91.9			141.6			-35.1	%
including General & Administrative Costs		69.2			77.4			-10.6	%		66.4			4.2	%		274.0			306.4			-10.6	%
SG&A percentage		27.5	%		27.9	%					25.7	%					26.9	%		28.6	%
Net (loss) income attributable to VimpelCom		-7.6			-278.5			n/a			2.7			n/a			10.3			-257.1			n/a
Mobile subscribers (‘000)		13,342			13,352			-0.1	%		14,235			-6.3	%		13,342			13,352			-0.1	%
Broadband subscribers (‘000)		146			39			274.4	%		97			50.5	%		146			39			274.4	%

In 2009, our net operating revenues in the CIS grew in local currency terms in the majority of our markets, including Kazakhstan and Ukraine. However, in dollar terms, we reported a 13.1% decline due to dollar appreciation against the local currencies.

Our focus on operational efficiencies increased our full-year consolidated OIBDA margin by more than 4 percentage points to 46.1% in 2009 compared to 2008, a remarkable achievement in challenging market conditions.

Mobile subscriber numbers in the CIS in 2009 stayed essentially flat, reflecting the Company’s focus on subscriber quality. The number of broadband subscribers increased almost fourfold compared to 2008 as we started to actively develop our broadband projects in Ukraine, Kazakhstan, Uzbekistan and Armenia.

 

8

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CIS Revenues Development

 

KAZAKHSTAN (KZT mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Net operating revenues		25,564		23,661		8.0	%		25,928		-1.4	%		96,543		89,439		7.9	%
Mobile		25,181		23,277		8.2	%		25,563		-1.5	%		95,142		88,311		7.7	%
Fixed		1,119		853		31.2	%		1,017		10.0	%		3,703		2,294		61.4	%
Elimination		-736		-469					-652					-2,302		-1,166
UKRAINE (UAH mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Net operating revenues		385		424		-9.2	%		442		-12.9	%		1,582		1,460		8.4	%
Mobile		202		284		-28.9	%		265		-23.8	%		898		1,025		-12.4	%
Fixed		220		161		36.6	%		219		0.5	%		818		503		62.6	%
Elimination		-37		-21					-42					-134		-68
ARMENIA (AMD mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Net operating revenues		18,202		19,532		-6.8	%		19,167		-5.0	%		72,687		78,368		-7.2	%
Mobile		7,046		8,339		-15.5	%		7,575		-7.0	%		28,819		33,013		-12.7	%
Fixed		11,156		11,194		-0.3	%		11,592		-3.8	%		43,868		45,355		-3.3	%
Elimination		0		0					0					0		0
UZBEKISTAN (US$ mln)*		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Net operating revenues		50.2		66.5		-24.5	%		50.1		0.2	%		211.3		216.4		-2.4	%
Mobile		47.5		63.5		-25.2	%		46.8		1.5	%		199.3		207.1		-3.8	%
Fixed		2.8		3.0		-6.7	%		3.3		-15.2	%		12.2		9.3		31.2	%
Elimination		-0.1		0.0					0.0					-0.2		0.0
TAJIKISTAN (US$ mln)*		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile net operating revenues		15.6		16.4		-4.9	%		14.9		4.7	%		59.2		50.8		16.5	%
GEORGIA (GEL mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile net operating revenues		17.1		9.2		85.9	%		14.9		14.8	%		54.0		26.2		106.1	%

 

9

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CIS REVENUES (US$ mln)		4Q ‘09		4Q ‘08		y-o-y			3Q ‘09		q-o-q			2009		2008		y-o-y
Net operating revenues		341.6		419.6		-18.6	%		353.6		-3.4	%		1,358.9		1,564.3		-13.1	%
Mobile		284.4		354.1		-19.7	%		294.3		-3.4	%		1,128.7		1,315.0		-14.2	%
Fixed		66.8		73.0		-8.5	%		69.2		-3.5	%		263.2		272.7		-3.5	%
Elimination		-9.6		-7.5					-9.9					-33.0		-23.4

 

*	US$ is the functional currency in Uzbekistan and Tajikistan.

 

10

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CIS OIBDA Development

 

KAZAKHSTAN (KZT mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA total		14,083			11,740			20.0	%		15,341			-8.2	%		53,244			45,969			15.8	%
Mobile		13,409			11,276			18.9	%		14,747			-9.1	%		51,139			44,810			14.1	%
Fixed		674			464			45.3	%		594			13.5	%		2,105			1,159			81.6	%
Adjusted OIBDA margin, %		55.1	%		49.6	%					59.2	%					55.2	%		51.4	%
UKRAINE (UAH mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA total		60.8			73.7			-17.5	%		94.6			-35.7	%		281.7			129.0			118.4	%
Mobile		4.2			38.5			-89.1	%		34.0			-87.6	%		57.5			13.4			329	%
Fixed		56.6			35.2			60.8	%		60.6			-6.6	%		224.2			115.6			93.9	%
Adjusted OIBDA margin, %		15.8	%		17.4	%					21.4	%					17.8	%		8.8	%
ARMENIA (AMD mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA total		8,748			9,735			-10.1	%		9,812			-10.8	%		36,625			38,114			-3.9	%
Mobile		2,902			3,819			-24.0	%		3,633			-20.1	%		13,376			14,366			-6.9	%
Fixed		5,846			5,916			-1.2	%		6,179			-5.4	%		23,249			23,748			-2.1	%
Adjusted OIBDA margin, %		48.1	%		49.8	%					51.2	%					50.4	%		48.6	%
UZBEKISTAN (US$ mln)*		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA total		23.0			34.2			-32.7	%		23.5			-2.1	%		106.6			115.9			-8.0	%
Mobile		21.9			33.0			-33.6	%		22.2			-1.4	%		101.7			112.8			-9.8	%
Fixed		1.1			1.2			-8.3	%		1.3			-15.4	%		4.9			3.1			58.1	%
Adjusted OIBDA margin, %		45.8	%		51.4	%					46.9	%					50.4	%		53.6	%
TAJIKISTAN (US$ mln)*		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted Mobile OIBDA		7.1			5.3			34.0	%		5.2			36.5	%		22.5			14.0			60.7	%
Adjusted Mobile OIBDA margin, %		45.5	%		32.3	%					34.9	%					38.0	%		27.6	%
GEORGIA (GEL mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted Mobile OIBDA		0.6			-1.8			n/a			1.6			-62.5	%		1.5			-9.9			n/a
Adjusted Mobile OIBDA margin, %		3.5	%		n/a						10.7	%					2.8	%		n/a

 

11

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CIS OIBDA (US$ mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA total		154.7			179.3			-13.7	%		169.8			-8.9	%		626.7			652.6			-4.0	%
Mobile		126.9			149.1			-14.9	%		140.4			-9.6	%		515.0			540.1			-4.6	%
Fixed		27.8			30.2			-7.9	%		29.4			-5.4	%		111.7			112.5			-0.7	%
Adjusted OIBDA margin, %		45.3	%		42.7	%					48.0	%					46.1	%		41.7	%

 

*	US$ is the functional currency in Uzbekistan and Tajikistan.

CIS Operating Highlights

 

KAZAKHSTAN		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile subscribers (‘000)		6,135		6,270		-2.2	%		6,835		-10.2	%		6,135		6,270		-2.2	%
MOU, min		102.3		100.5		1.8	%		98.1		4.3	%		93.1		104.3		-10.7	%
ARPU mobile, US$		8.5		10.8		-21.3	%		8.2		3.7	%		8.1		11.7		-30.8	%
ARPU mobile, (KZT)		1,279		1,298		-1.5	%		1,241		3.1	%		1,202		1,402		-14.3	%
Broadband internet subscribers (‘000)		1.3		0.2		550.0	%		0.3		333.3	%		1.3		0.2		550.0	%

 

UKRAINE		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile subscribers (‘000)		2,005		2,052		-2.3	%		2,199		-8.8	%		2,005		2,052		-2.3	%
MOU, min		201.3		230.0		-12.5	%		203.7		-1.2	%		208.7		231.8		-10.0	%
ARPU mobile, US$		3.9		7.0		-44.3	%		5.4		-27.8	%		4.7		7.6		-38.2	%
ARPU mobile, (UAH)		31.9		42.1		-24.2	%		42.0		-24.0	%		37.1		39.8		-6.8	%
Broadband internet subscribers (‘000)		109.3		24.1		353.5	%		70.1		55.9	%		109.3		24.1		353.5	%

 

ARMENIA		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile subscribers (‘000)		545		544		0.2	%		502		8.6	%		545		544		0.2	%
MOU, min		268.2		150.0		78.8	%		269.0		-0.3	%		237.8		152.1		56.3	%
ARPU mobile, US$		11.5		13.6		-15.4	%		13.7		-16.1	%		13.2		14.6		-9.6	%
ARPU mobile, (AMD)		4,433		4,182		6.0	%		5,117		-13.4	%		4,782		4,460		7.2	%
Broadband internet subscribers (‘000)		26.2		9.2		184.8	%		18.1		44.8	%		26.2		9.2		184.8	%

 

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UZBEKISTAN		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile subscribers (‘000)		3,515		3,636		-3.3	%		3,652		-3.8	%		3,515		3,636		-3.3	%
MOU, min		387.3		288.6		34.2	%		409.3		-5.4	%		314.0		287.8		9.1	%
ARPU mobile, US$		4.6		6.5		-29.2	%		4.5		2.2	%		4.7		6.4		-26.6	%
Broadband internet subscribers (‘000)		9.0		5.8		55.2	%		8.3		8.4	%		9.0		5.8		55.2	%
TAJIKISTAN		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile subscribers (‘000)		743		625		18.9	%		706		5.2	%		743		625		18.9	%
MOU, min		173.6		243.4		-28.7	%		173.3		0.2	%		172.9		238.9		-27.6	%
ARPU mobile, US$		7.2		9.6		-25.0	%		7.2		0.0	%		7.1		9.5		-25.3	%
GEORGIA		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile subscribers (‘000)		399		225		77.3	%		341		17.0	%		399		225		77.3	%
MOU, min		131.1		129.8		1.0	%		129.3		1.4	%		138.3		113.6		21.7	%
ARPU mobile, US$		8.4		9.7		-13.4	%		9.2		-8.7	%		8.9		9.0		-1.1	%
ARPU mobile, (GEL)		15.2		15.1		0.7	%		15.4		-1.3	%		14.9		13.0		14.6	%

 

*	We no longer provide information on subscriber market share, because different churn policies used by mobile service providers result in reported subscriber market share figures that are not representative.

 

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South-East Asia

In Cambodia we successfully continue development of our operations. We achieved network coverage of more than 70% of the population and our services are available in the 18 largest provinces. Good network quality, effective marketing and a pro-active approach to distribution helped us to establish a solid footprint for further expansion. We now serve more than 370 thousand subscribers.

Six months after the network launch in Vietnam, our networks cover approximately 32% of the population with presence in 40 out of 63 provinces. By the end of 2009, we served approximately 1.1 million subscribers counted on a one month active basis.

We are satisfied with the pace of business development and remain optimistic about the potential of the South-East Asia mobile market.

 

SEA (US$ mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08		3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Net operating mobile revenues		2.4		0.0		n/a		2.4		0.0	%		5.7		0.0		n/a
Adjusted mobile OIBDA		-6.4		-0.8		n/a		-7.5		n/a			-21.0		-1.0		n/a

 

*)	See definitions in Attachment A.

*  *  *

For more information on financial and operating data for specific countries, please refer to the supplementary file FinancialOperatingQ42009.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

The Company’s management will discuss its fourth quarter and annual 2009 results during a conference call and slide presentation on March 18, 2010 at 6:30 pm Moscow time (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 March 25, 2010. The slide presentation webcast will also be available for download on VimpelCom’s website http://www.vimpelcom.com.

The VimpelCom Group consists of telecommunications operators providing voice and data services through a range of mobile, fixed and broadband technologies. The Group includes companies operating in Russia, Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Georgia, Armenia, as well as Vietnam and Cambodia, in territories with a total population of about 340 million. VimpelCom was the first Russian company to list its shares on the New York Stock Exchange (“NYSE”). VimpelCom’s ADSs are listed on the NYSE under the symbol “VIP”.

 

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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 proposed combination with Kyivstar and its benefits, the Company’s 2010 capital expenditures, the Company’s future revenues, pricing and competitive position, and the Company’s development plans in Cambodia and Vietnam. 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 newly-acquired businesses, including Golden Telecom, and other factors. There can be no assurance that such risks and uncertainties will not have a material adverse effect on the VimpelCom Group. Certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risks described in the Company’s Amended Annual Report on Form 20-F/A for the year ended December 31, 2008 and other public filings made by the Company with the United States Securities and Exchange Commission, which risk factors are incorporated herein by reference. VimpelCom disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.

IMPORTANT NOTICE: In connection with the exchange offer, VimpelCom Ltd. has filed with the SEC a registration statement on Form F-4, which includes a preliminary prospectus and related U.S. offer acceptance materials, and a Statement on Schedule TO. In addition, the Company has filed a Solicitation/Recommendation Statement on Schedule 14D-9. Holders of the Company’s securities are urged to carefully read the VimpelCom Ltd. registration statement (including the preliminary prospectus), the VimpelCom Ltd. Statement on Schedule TO, any other documents relating to the U.S. offer filed by VimpelCom Ltd. with the SEC, and the Company’s Solicitation/Recommendation Statement on Schedule 14D-9, as well as any amendments and supplements to these documents, because they contain important information. Free copies of the registration statement, including the preliminary prospectus and related U.S. offer acceptance materials, the Statement on Schedule TO, the Solicitation/Recommendation Statement on Schedule 14D-9, amendments and supplements to these documents, and other relevant documents filed with the SEC in respect of the U.S. offer, can be obtained at the SEC’s website at www.sec.gov.

This announcement is not an offering document and does not constitute an offer to exchange or the solicitation of an offer to exchange securities or a solicitation of any vote or approval, nor shall there be any sale or exchange of securities in any jurisdiction in which such offer, solicitation or sale or exchange would be unlawful prior to the registration or qualification under the laws of such jurisdiction. The solicitation of offers to exchange the Company’s securities for VimpelCom Ltd. DRs in the United States is being made pursuant to the preliminary prospectus and related U.S. offer acceptance materials that have been mailed to holders resident in the United States (including its territories and possessions) of Company shares and all holders of Company ADSs, wherever located.

 

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This announcement does not constitute advertisement of securities, including securities of foreign issuers, in the Russian Federation within the meaning of Federal Law No. 39-FZ “On the Securities Market” dated April 22, 1996, as amended (the “Securities Law”), Federal Law No. 46-FZ “On the Protection of Rights and Lawful Interests of Investors on the Securities Market” dated March 5, 1999, as amended, and Federal Law No. 38-FZ “On Advertising” dated March 13, 2006, as amended, or a public offer to purchase, sell, exchange or transfer to or for the benefit of any person resident, incorporated, established or having their usual residence in the Russian Federation, or to any person located within the territory of the Russian Federation, that does not fall under a legal definition of a “qualified investor” within the meaning of Article 51.2 of the Securities Law, or an invitation to or for the benefit of any such person, to make offers to purchase, sell, exchange or transfer any such securities. The securities of VimpelCom Ltd. have not been and will not be admitted for placement, public placement or public circulation in the Russian Federation within the meaning of Article 51.1 of the Securities Law. This announcement is not for publication, release or distribution in or into or from any jurisdiction where it would otherwise be prohibited.

For more information, please contact:

 

Alexey Subbotin		Mateo Millett
VimpelCom		FD
Tel: 7(495) 910-5977		Tel: 1-617 897-1533
Investor_Relations@vimpelcom.com		mateo.millett@fdashtonpartners.com

 

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- Definitions and tables are attached –

Attachment A: Definitions

Mobile subscribers are subscribers in the registered subscriber base as of a measurement date who engaged in a revenue generating activity at any time during the three months prior to the measurement date. Such activity includes any incoming and outgoing calls, subscriber 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 subscribers using mobile Internet service via USB modems.

Each ADS represents 0.05 of one share of common stock. This ratio was established effective August 21, 2007.

ARPU (Monthly Average Revenue per User) is calculated by dividing the Company’s 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 the Company’s subscribers during the period and dividing by the number of months in that period.

Broadband subscribers are those subscribers in the registered subscriber base who were a party to a revenue generating activity in the past three months. Such activities include monthly internet access using FTTB, xDSL and WiFi technologies as well as mobile internet service via USB modems.

CIS Geographic Segment for the purpose of VimpelCom reporting includes our operations in the following countries: Kazakhstan, Ukraine, Uzbekistan, Tajikistan, Armenia and Georgia

Fixed-line subscriber is an authorized user of fixed-line communications services.

General and administrative costs (G&A) include salaries and outsourcing costs, including related social contributions required by Russian 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.

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

Adjusted OIBDA is a non-U.S. GAAP financial measure. Adjusted OIBDA, previously referred to as EBITDA or OIBDA by the Company, is defined as operating income before depreciation, amortization and impairment loss. The Company believes that adjusted OIBDA provides useful information to investors because it is an indicator of the strength and performance of our business operations, including our ability to finance capital expenditures, acquisitions and other investments and our ability to incur and service debt. While depreciation, amortization and impairment loss are considered operating costs under U.S. GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Our adjusted OIBDA calculations are commonly used as bases for some investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the

 

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telecommunications industry. Adjusted OIBDA should not be considered in isolation as an alternative to net income attributable to VimpelCom, operating income or any other measure of performance under U.S. GAAP. Adjusted OIBDA does not include our need to replace our capital equipment over time. Reconciliation of adjusted OIBDA to operating income, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section.

Adjusted OIBDA margin is adjusted OIBDA expressed as a percentage of net operating revenues. Reconciliation of adjusted OIBDA margin to operating 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.

Prepaid subscribers are those subscribers who pay for their services in advance.

Roaming revenues include both revenues from VimpelCom customers who roam outside of home country network and revenues from other wireless carriers for roaming by their customers on VimpelCom’s network. Roaming revenues do not include revenues from our own subscribers roaming while travelling across Russian regions within our network (so called ‘intranet roaming’)

Sales and marketing costs (S&M) include marketing, advertising and dealer commissions expenses.

Take-up rate for the FTTB network is calculated by dividing the number of FTTB subscribers by the total number of households passed.

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.

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.

SEA – VimpelCom operations in South-East Asia, which include operations in Cambodia and VimpelCom’s respective equity in net results of operations of the Company’s Vietnamese associate GTEL-Mobile JSC (“GTEL-Mobile”).

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. 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.

Free cash flow is a non-U.S. GAAP financial measure and is calculated as operating cash flow less Capex. The Company believes that free cash flow provides useful information to investors because it is an indicator of our company’s operational and financial performance and represents our ability to generate cash after accruals required to maintain or expand our asset base. Free cash flow should not be considered in isolation as an alternative to operating cash flow or any other measure of the company cash flows management. Reconciliation of free cash flow to operating cash flow, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section.

 

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Attachment B: VimpelCom financial statements

Open Joint Stock Company “Vimpel-Communications”

Audited Consolidated Statements of Income

 

		Years ended December 31,
		2009				2008				2007
		(In thousands of US dollars, except share (ADS) amounts)
Operating revenues:
Service revenues		$	8,580,815			$	9,999,850			$	7,161,833
Sales of equipment and accessories			109,959				107,946				6,519
Other revenues			19,788				17,190				6,528
Total operating revenues			8,710,562				10,124,986				7,174,880
Revenue based tax			(7,660	)			(8,054	)			(3,782	)
Net operating revenues			8,702,902				10,116,932				7,171,098
Operating expenses:
Service costs			1,878,443				2,262,570				1,309,287
Cost of equipment and accessories			110,677				101,282				5,827
Selling, general and administrative expenses			2,389,998				2,838,508				2,206,322
Depreciation			1,393,431				1,520,184				1,171,834
Amortization			300,736				360,980				218,719
Impairment loss			—				442,747				—
Provision for doubtful accounts			51,262				54,711				52,919
Total operating expenses			6,124,547				7,580,982				4,964,908
Operating income			2,578,355				2,535,950				2,206,190
Other income and expenses:
Interest income			51,714				71,618				33,021
Net foreign exchange (loss)/gain			(411,300	)			(1,142,276	)			72,955
Interest expense			(598,531	)			(495,634	)			(194,839	)
Equity in net (loss)/gain of associates			(35,763	)			(61,020	)			(211	)
Other (expenses)/income, net			(32,114	)			(17,404	)			3,240
Total other income and expenses			(1,025,994	)			(1,644,716	)			(85,834	)
Income before income taxes			1,552,361				891,234				2,120,356
Income tax expense			435,030				303,934				593,928
Net income			1,117,331				587,300				1,526,428
Net (loss)/income attributable to the noncontrolling interest			(4,499	)			62,966				63,722
Net income attributable to VimpelCom		$	1,121,830			$	524,334			$	1,462,706
Basic EPS :
Net income attributable to VimpelCom per common share		$	21.71			$	10.32			$	28.78
Weighted average common shares outstanding (thousand)			50,647				50,700				50,818
Net income attributable to VimpelCom per ADS equivalent		$	1.09			$	0.52			$	1.44
Diluted EPS :
Net income attributable to VimpelCom per common share		$	21.69			$	10.32			$	28.78
Weighted average diluted shares (thousand)			50,678				50,703				50,818
Net income attributable to VimpelCom per ADS equivalent		$	1.08			$	0.52			$	1.44
Dividends per share		$	6.30			$	11.46			$	6.47
Dividends per ADS equivalent		$	0.31			$	0.57			$	0.32

 

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Open Joint Stock Company “Vimpel-Communications”

Audited Consolidated Balance Sheets

 

		December 31, 2009				December 31, 2008
		(In thousands of US dollars, except share amounts)
Assets
Current assets:
Cash and cash equivalents		$	1,446,949			$	914,683
Trade accounts receivable, net of allowance for doubtful accounts			392,365				475,667
Inventory			61,919				142,649
Deferred income taxes			91,493				82,788
Input value added tax			96,994				182,045
Due from related parties			249,631				168,196
Other current assets			627,257				440,479
Total current assets			2,966,608				2,406,507
Property and equipment, net			5,561,569				6,425,873
Telecommunications licenses, net			542,597				764,783
Goodwill			3,284,293				3,476,942
Other intangible assets, net			700,365				882,830
Software, net			448,255				549,166
Investments in associates			436,767				493,550
Other assets			792,087				725,502
Total assets		$	14,732,541			$	15,725,153
Liabilities, redeemable noncontrolling interest and equity
Current liabilities:
Accounts payable		$	545,690			$	896,112
Due to employees			113,368				105,795
Due to related parties			9,211				7,492
Accrued liabilities			315,666				288,755
Taxes payable			212,767				152,189
Customer advances, net of VAT			376,121				425,181
Customer deposits			28,386				29,557
Short-term debt			1,813,141				1,909,221
Total current liabilities			3,414,350				3,814,302
Deferred income taxes			596,472				644,475
Long-term debt			5,539,906				6,533,705
Other non-current liabilities			164,636				122,825
Commitments, contingencies and uncertainties			—				—
Total liabilities			9,715,364				11,115,307
Redeemable noncontrolling interest			508,668				469,604
Equity:
Convertible voting preferred stock (.005 rubles nominal value per share), 10,000,000 shares authorized; 6,426,600 shares issued and outstanding			—				—
Common stock (.005 rubles nominal value per share), 90,000,000 shares authorized; 51,281,022 shares issued (December 31, 2008: 51,281,022); 50,714,579 shares outstanding (December 31, 2008: 50,617,408)			92				92
Additional paid-in capital			1,143,657				1,165,188
Retained earnings			4,074,492				3,271,878
Accumulated other comprehensive (loss)			(488,277	)			(90,021	)
Treasury stock, at cost, 566,443 shares of common stock (December 31, 2008: 663,614)			(223,421	)			(239,649	)
Total VimpelCom shareholders’ equity			4,506,543				4,107,488
Noncontrolling interest			1,966				32,754
Total equity			4,508,509				4,140,242
Total liabilities, redeemable noncontrolling interest and equity		$	14,732,541			$	15,725,153

 

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Open Joint Stock Company “Vimpel-Communications”

Audited Consolidated Statements of Cash Flows

 

		Years ended December 31,
		2009				2008				2007
		(In thousands of US dollars)
Operating activities
Net income		$	1,117,331			$	587,300			$	1,526,428
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			1,393,431				1,520,184				1,171,834
Amortization			300,736				360,980				218,719
Impairment loss			—				442,747				—
Loss from assosiates			35,763				61,020				211
Provision for deferred taxes			(19,541	)			(92,654	)			32,858
Loss (gain) on foreign currency translation			411,300				1,142,276				(72,955	)
Provision for doubtful accounts			51,262				54,711				52,919
Stock-based compensation expense/(gain)			2,323				(121,890	)			171,242
Loss from early debt redemption			19,063				—				—
Other adjustments			(380	)			(5,078	)			—
Changes in operating assets and liabilities:
Trade accounts receivable			(57,452	)			(240,629	)			(333	)
Inventory			64,927				(90,221	)			(3,021	)
Input value added tax			78,972				(103,941	)			45,383
Other current assets			135,212				(415,735	)			(351	)
Accounts payable			(69,290	)			281,725				(157,901	)
Customer advances and deposits			(23,010	)			75,098				85,135
Taxes payable and accrued liabilities			72,122				(34,035	)			(32,478	)
Net cash provided by operating activities			3,512,769				3,421,858				3,037,690
Investing activities
Purchases of property and equipment			(691,445	)			(2,002,452	)			(1,238,305	)
Purchases of intangible assets			(15,685	)			(75,012	)			(73,814	)
Purchases of software			(184,481	)			(313,652	)			(293,956	)
Acquisition of subsidiaries, net of cash acquired			—				(4,134,609	)			(301,355	)
Investments in associates			(12,500	)			(491,265	)			—
Exercise of escrow cash deposit			—				200,170				(200,170	)
Loan granted			—				(350,000	)			—
Investments in deposits			(488,580	)			43,179				(42,356	)
Purchases of other assets, net			(40,799	)			(53,575	)			(84,596	)
Net cash used in investing activities			(1,433,490	)			(7,177,216	)			(2,234,552	)
Financing activities
Proceeds from bank and other loans			1,270,248				6,209,392				666,348
Proceeds from sale of treasury stock			—				25,488				39,787
Repayments of bank and other loans			(2,432,862	)			(721,222	)			(365,657	)
Payments of fees in respect of debt issues			(53,071	)			(68,159	)			(14,380	)
Repayments of equipment financing obligations			—				—				(106,888	)
Net proceeds from employee stock options			18,142				—				—
Purchase of noncontrolling interest in consolidated subsidiaries			(18,198	)			(992,825	)			—
Payment of dividends			(315,644	)			(587,302	)			(331,885	)
Payment of dividends to noncontrolling interest			(13,977	)			—				—
Purchase of treasury stock			—				(114,476	)			(81,069	)
Net cash (used in)/provided by financing activities			(1,545,362	)			3,750,896				(193,744	)
Effect of exchange rate changes on cash and cash equivalents			(1,651	)			(84,566	)			49,823
Net increase/(decrease) in cash and cash equivalents			532,266				(89,028	)			659,217
Cash and cash equivalents at beginning of year			914,683				1,003,711				344,494
Cash and cash equivalents at end of year		$	1,446,949			$	914,683			$	1,003,711

 

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Open Joint Stock Company “Vimpel-Communications”

Audited Consolidated Statements of Cash Flows (Continued)

 

		Years ended December 31,
		2009			2008				2007
		(In thousands of US dollars)
Supplemental cash flow information
Cash paid during the period:
Income tax		$	428,761		$	647,597			$	601,939
Interest			571,964			406,020				201,259
Non-cash activities:
Equipment acquired under financing agreements			—			2,726				48,514
Accounts payable for property, equipment and other long-lived assets			210,159			448,218				417,478
Non–cash discounts from suppliers of equipment			239			2,464				(5,441	)
Issue of promissory notes			—			81,660				—
Acquisitions :
Fair value of assets acquired			—			2,645,655				84,125
Fair value of noncontrolling interest acquired			—			206,129				41,636
Difference between the amount paid and the fair value of net assets acquired			—			3,517,062				182,034
Consideration for the acquisition of subsidiaries			—			(5,348,180	)			(291,928	)
Fair value of liabilities assumed		$	—		$	1,020,666			$	15,867

 

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Attachment C: Reconciliation Tables (Unaudited)

Reconciliation of Adjusted Consolidated OIBDA

(In millions of US$)

 

		4Q ‘09			4Q ‘08			3Q ‘09			2009			2008
Adjusted OIBDA		1,088			1,124			1,148			4,272			4,860
Depreciation		(393	)		(379	)		(366	)		(1,393	)		(1,520	)
Amortization		(87	)		(94	)		(71	)		(301	)		(361	)
Impairment loss		0			(443	)		0			0			(443	)
Operating income		608			208			711			2,578			2,536

Reconciliation of Adjusted Consolidated OIBDA Margin

 

		4Q ‘09			4Q ‘08			3Q ‘09			2009			2008
Adjusted OIBDA margin		47.1	%		44.0	%		50.4	%		49.1	%		48.0	%
Less: Depreciation as a percentage of net operating revenues		(17.0	)%		(14.9	)%		(16.1	)%		(16.0	)%		(15.0	)%
Less: Amortization as a percentage of net operating revenues		(3.8	)%		(3.7	)%		(3.1	)%		(3.5	)%		(3.5	)%
Less: Impairment loss as a percentage of net operating revenues		0.0	%		(17.3	)%		0.0	%		0.0	%		(4.4	)%
Operating income as a percentage of net operating revenues		26.3	%		8.1	%		31.2	%		29.6	%		25.1	%

Reconciliation of Consolidated Net Debt

(In millions of US$)

 

		2009			2008
Net debt		5,906			7,528
Long - term debt		5,540			6,534
Short-term debt		1,813			1,909
Cash and cash equivalents		(1,447	)		(915	)

 

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Reconciliation of Consolidated Free Cash Flow

(In millions of US$)

 

		2009			2008
Free cash flow		2,699			851
Net cash provided by operating activities		3,513			3,422
Capital expenditures		(814	)		(2,571	)

Attachment D: Capex Development

 

CAPEX (in US$ millions)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Total capex		422.7		855.5		-50.6	%		123.2		243.1	%		814.1		2,570.8		-68.3	%
Russia		331.5		641.5		-48.3	%		90.3		267.1	%		619.1		1,776.4		-65.1	%
CIS		68.1		203.5		-66.5	%		24.5		178.0	%		126.8		775.1		-83.6	%
Kazakhstan		19.5		79.7		-75.5	%		10.0		95.0	%		43.8		254.8		-82.8	%
Ukraine		11.0		57.8		-81.0	%		3.0		266.7	%		19.8		185.4		-89.3	%
Armenia		7.8		23.7		-67.1	%		1.3		500.0	%		9.7		78.3		-87.6	%
Uzbekistan		21.1		17.2		22.7	%		7.2		193.1	%		36.9		176.3		-79.1	%
Tajikistan		5.4		18.0		-70.0	%		0.5		980.0	%		7.1		45.1		-84.3	%
Georgia		3.3		7.1		-53.5	%		2.5		32.0	%		9.5		35.2		-73.0	%
SEA		22.8		7.4		208.1	%		8.2		178.0	%		67.6		7.7		777.9	%

 

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Attachment E: Key Financial Results in US Dollars

Russia

 

RUSSIA (US$ millions)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Net operating revenues		1,996			2,157			-7.5	%		1,953			2.2	%		7,448			8,619			-13.6	%
Adjusted OIBDA		941			948			-0.7	%		988			-4.8	%		3,674			4,215			-12.8	%
Adjusted OIBDA margin, %		47.1	%		43.9	%					50.6	%					49.3	%		48.9	%
Operating income		590			288			104.9	%		661			-10.7	%		2,413			2,476			-2.5	%
Operating income margin, %		29.6	%		13.4	%					33.8	%					32.4	%		28.7	%
SG&A		578			667			-13.3	%		500			15.6	%		1,998			2,384			-16.2	%
including Sales & Marketing Expenses		191			246			-22.4	%		158			20.9	%		628			787			-20.2	%
including General & Administrative Costs		387			421			-8.1	%		342			13.2	%		1,370			1,597			-14.2	%
SG&A percentage		29.0	%		30.9	%					25.6	%					26.8	%		27.7	%
Net income (loss) attributable to VimpelCom		313			-445			n/a			440			-28.9	%		1,188			880			35.0	%
RUSSIA REVENUES (US$ millions)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Net operating revenues		1,996			2,157			-7.5	%		1,953			2.2	%		7,448			8,619			-13.6	%
Mobile revenues		1,671			1,797			-7.0	%		1,643			1.7	%		6,198			7,372			-15.9	%
Fixed-line revenues		458			439			4.3	%		434			5.5	%		1,687			1,429			18.1	%
Eliminations		-133			-79						-124						-437			-182
RUSSIA OIBDA DEVELOPMENT (US$ millions)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA total		941			948			-0.7	%		988			-4.8	%		3,674			4,215			-12.8	%
Mobile		824			840			-1.9	%		873			-5.6	%		3,205			3,872			-17.2	%
Fixed-line		117			108			8.3	%		115			1.7	%		469			343			36.7	%
Adjusted total OIBDA margin, %		47.1	%		43.9	%					50.6	%					49.3	%		48.9	%
Mobile, %		49.3	%		46.7	%					53.1	%					51.7	%		52.5	%
Fixed-line, %		25.5	%		24.6	%					26.5	%					27.8	%		24.0	%

 

*	Please find information on respective operating income amounts in the supplementary file FinancialOperatingQ42009.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

 

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CIS Segment Revenues in US$

 

KAZAKHSTAN (US$ mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Net operating revenues		170.4		196.9		-13.5	%		171.9		-0.9	%		653.3		743.6		-12.1	%
Mobile		167.8		193.7		-13.4	%		169.5		-1.0	%		643.8		734.2		-12.3	%
Fixed		7.5		7.1		5.6	%		6.7		11.9	%		25.0		19.1		30.9	%
Elimination		-4.9		-3.9					-4.3					-15.5		-9.7
UKRAINE (US$ mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Net operating revenues		48.1		70.5		-31.8	%		56.6		-15.0	%		203.2		280.7		-27.6	%
Mobile		25.2		47.5		-46.9	%		34.0		-25.9	%		115.3		197.8		-41.7	%
Fixed		27.5		26.4		4.2	%		28.1		-2.1	%		105.0		96.1		9.3	%
Elimination		-4.6		-3.4					-5.5					-17.1		-13.2
ARMENIA (US$ mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Net operating revenues		47.3		63.7		-25.7	%		51.4		-8.0	%		200.6		256.2		-21.7	%
Mobile		18.3		27.2		-32.7	%		20.3		-9.9	%		79.6		108.0		-26.3	%
Fixed		29.0		36.5		-20.5	%		31.1		-6.8	%		121.0		148.2		-18.4	%
Elimination		0.0		0.0					0.0					0.0		0.0
UZBEKISTAN (US$ mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Net operating revenues		50.2		66.5		-24.5	%		50.1		0.2	%		211.3		216.4		-2.4	%
Mobile		47.5		63.5		-25.2	%		46.8		1.5	%		199.3		207.1		-3.8	%
Fixed		2.8		3.0		-6.7	%		3.3		-15.2	%		12.2		9.3		31.2	%
Elimination		-0.1		0.0					0.0					-0.2		0.0

 

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TAJIKISTAN (US$ mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile net operating revenues		15.6		16.4		-4.9	%		14.9		4.7	%		59.2		50.8		16.5	%
GEORGIA (US$ mln)		4Q ‘09		4Q ‘08		4Q ‘09/ 4Q ‘08			3Q ‘09		4Q ‘09/ 3Q ‘09			2009		2008		2009/ 2008
Mobile net operating revenues		10.2		5.9		72.9	%		8.9		14.6	%		32.3		17.7		82.5	%

CIS Segment Adjusted OIBDA in US$

 

KAZAKHSTAN (US$ mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA total		93.9			97.7			-3.9	%		101.7			-7.7	%		359.6			382.2			-5.9	%
Mobile		89.4			93.8			-4.7	%		97.8			-8.6	%		345.4			372.5			-7.3	%
Fixed		4.5			3.9			15.4	%		3.9			15.4	%		14.2			9.7			46.4	%
Adjusted OIBDA margin, %		55.1	%		49.6	%					59.2	%					55.0	%		51.4	%
UKRAINE (US$ mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA total		7.6			11.6			-34.5	%		12.1			-37.2	%		36.0			22.5			60.0	%
Mobile		0.6			5.7			-89.5	%		4.5			-86.7	%		7.5			0.4			1775	%
Fixed		7.0			5.9			18.6	%		7.6			-7.9	%		28.5			22.1			29.0	%
Adjusted OIBDA margin, %		15.8	%		16.5	%					21.4	%					17.7	%		8.0	%

 

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ARMENIA (US$ mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA total		22.7			31.7			-28.4	%		26.3			-13.7	%		101.1			124.6			-18.9	%
Mobile		7.5			12.5			-40.0	%		9.7			-22.7	%		37.0			47.0			-21.3	%
Fixed		15.2			19.2			-20.8	%		16.6			-8.4	%		64.1			77.6			-17.4	%
Adjusted OIBDA margin, %		48.0	%		49.8	%					51.2	%					50.4	%		48.6	%
UZBEKISTAN (US$ mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted OIBDA total		23.0			34.2			-32.7	%		23.5			-2.1	%		106.6			115.9			-8.0	%
Mobile		21.9			33.0			-33.6	%		22.2			-1.4	%		101.7			112.8			-9.8	%
Fixed		1.1			1.2			-8.3	%		1.3			-15.4	%		4.9			3.1			58.1	%
Adjusted OIBDA Margin, %		45.8	%		51.4	%					46.9	%					50.4	%		53.6	%
TAJIKISTAN (US$ mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted mobile OIBDA		7.1			5.3			34.0	%		5.2			36.5	%		22.5			14.0			60.7	%
Adjusted mobile OIBDA margin, %		45.5	%		32.3	%					34.9	%					38.0	%		27.6	%
GEORGIA (US$ mln)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Adjusted mobile OIBDA		0.4			-1.2			n/a			1.0			-60.0	%		0.9			-6.6			n/a
Adjusted mobile OIBDA margin, %		3.9	%		n/a						11.2	%					2.8	%		n/a

 

*	Please find information on respective operating income amounts in the supplementary file FinancialOperatingQ42009.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

 

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Attachment F: Average Rates of Functional Currencies to USD*

 

Functional Currency/ 1 US$				3q ‘08		4q ‘08		1q ‘09		2q ‘09		3q ‘09		4q ‘09
Russia		RUR		24.25		27.27		33.93		32.21		31.33		29.47
Kazakhstan		KZT		119.99		120.16		138.85		150.47		150.75		149.77
Ukraine		UAH		4.85		6.21		7.70		7.66		7.82		7.99
Armenia		AMD		302.27		306.47		325.11		370.46		372.66		384.40
Georgia		GEL		1.41		1.55		1.67		1.66		1.68		1.68

 

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

 

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Attachment G: Key Financial Results in Russian Rubles (Convenience Translation)

 

CONSOLIDATED OPERATIONS (RUR, millions)		4Q ‘09			4Q ‘08			4Q ‘09/ 4Q ‘08			3Q ‘09			4Q ‘09/ 3Q ‘09			2009			2008			2009/ 2008
Net operating revenues		68,053			69,677			-2.3	%		71,338			-4.6	%		275,269			251,432			9.5	%
Adjusted OIBDA		32,066			30,648			4.6	%		35,980			-10.9	%		135,170			120,488			12.2	%
Adjusted OIBDA margin, %		47.1	%		44.0	%					50.4	%					49.1	%		47.9	%
Operating income		17,919			5,674			215.8	%		22,299			-19.6	%		81,734			61,670			32.5	%
Operating income margin, %		26.3	%		8.1	%					31.3	%					29.7	%		24.5	%
SG&A		20,042			21,465			-6.6	%		18,760			6.8	%		75,466			70,730			6.7	%
including Sales & Marketing Expenses		6,428			7,784			-17.4	%		5,766			11.5	%		22,910			23,250			-1.5	%
including General & Administrative Costs		13,614			13,681			-0.5	%		12,994			4.8	%		52,556			47,480			10.7	%
SG&A percentage		29.4	%		30.8	%					26.3	%					27.4	%		28.1	%
Net income (loss) attributable to VimpelCom		8,341			-22,243			n/a			13,513			-38.3	%		35,939			9,966			260.6	%
Net income (loss) attributable to VimpelCom per common share, basic, (RUR)		161.27			-439.55						266.83						709.16			196.57
Net income (loss) attributable to VimpelCom per ADS equivalent, basic, (RUR)		8.06			-21.98						13.34						35.46			9.83
Capital expenditures		12,458			23,328			-46.6	%		3,842			224.3	%		25,252			64,512			-60.9	%
Mobile subscribers (‘000)		64,596			61,029			5.8	%		65,358			-1.2	%		64,596			61,029			5.8	%
Broadband subscribers (‘000)		2,257			1,221			84.8	%		1,930			16.9	%		2,257			1,221			84.8	%

 

Net operating revenues 4Q ‘09 (RUR millions)		Russia		CIS		SEA		Eliminations		Total
Mobile business		49,249		8,370		59		-59		57,619
Fixed-line business		13,499		1,975		0		-531		14,943
Eliminations		-3,920		-265		0		-324		-4,509
Total net operating revenue		58,828		10,080		59		-914		68,053

 

30

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VIP - Group

 

CONSOLIDATED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		1,488			1,717			1,956			2,010			2,108			2,611			2,843			2,555			1,973			2,146			2,276			2,309
Gross margin		1,221			1,403			1,590			1,643			1,675			2,012			2,149			1,917			1,504			1,673			1,760			1,776
Gross margin, %		82.1	%		81.7	%		81.3	%		81.7	%		79.5	%		77.1	%		75.6	%		75.0	%		76.2	%		78.0	%		77.3	%		76.9	%
OIBDA		766			897			1,015			918			1,126			1,223			1,388			1,124			949			1,088			1,148			1,088
OIBDA, %		51.5	%		52.2	%		51.9	%		45.7	%		53.4	%		46.8	%		48.8	%		44.0	%		48.1	%		50.7	%		50.4	%		47.1	%
SG&A		439			494			557			716			528			774			749			787			538			573			599			680
including Sales & Marketing Expenses		136			167			186			219			187			215			242			285			156			168			184			218
including advertising		52			67			66			92			69			89			86			101			26			37			38			57
including General & Administrative Costs		303			327			371			497			341			559			507			502			382			405			415			462
SG&A, %		29.5	%		28.8	%		28.5	%		35.6	%		25.0	%		29.6	%		26.3	%		30.8	%		27.3	%		26.7	%		26.3	%		29.4	%
Net income (loss)		277			359			458			368			601			470			269			-816			-290			696			433			283
Capital Expenditures		303.5			334.8			338.8			795.8			358.5			664.0			692.9			855.5			113.0			155.3			123.2			422.7
MOBILE (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		1,454			1,682			1,918			1,974			1,944			2,178			2,402			2,148			1,622			1,809			1,935			1,955
including Mobile Interconnect		209			241			270			303			300			323			355			326			241			266			280			302
Mobile OIBDA		750			878			996			896			1,072			1,104			1,248			989			808			948			1,006			944
Mobile OIBDA, %		51.6	%		52.2	%		51.9	%		45.4	%		55.1	%		50.7	%		52.0	%		46.0	%		49.8	%		52.4	%		52.0	%		48.3	%
Subscribers (‘000)		45,784			47,702			50,686			51,740			52,293			53,707			57,758			61,029			62,724			63,676			65,358			64,596
																							0
																							0
FIXED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		34.2			35.2			37.6			36.3			175.1			476.6			510.0			498.6			442.6			452.5			483.3			506.6
including business segment		0.0			0.0			0.0			0.0			74.4			227.1			235.0			218.2			184.6			177.2			173.4			180.9
including wholesale segment		0.0			0.0			0.0			0.0			50.6			165.8			194.2			197.6			187.4			204.2			231.1			252.0
including residential segment		34.2			35.2			37.6			36.3			50.1			83.7			80.8			82.8			70.6			71.1			78.8			73.7
Fixed OIBDA		16.2			18.5			19.5			22.8			55.0			120.4			141.8			138.3			145.0			147.0			144.1			144.6
Fixed OIBDA, %		47.4	%		52.6	%		51.9	%		62.8	%		31.4	%		25.3	%		27.8	%		27.7	%		32.8	%		32.5	%		29.8	%		28.5	%
Broadband subscribers (‘000)		0			0			0			0			542			617			785			1,221			1,560			1,739			1,930			2,257
Reconciliation of OIBDA total (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
OIBDA		766			897			1,015			918			1,126			1,223			1,388			1,124			949			1,088			1,148			1,088
Depreciation		(269	)		(285	)		(286	)		(331	)		(357	)		(385	)		(400	)		(379	)		(309	)		(326	)		(366	)		(393	)
Amortization		(53	)		(54	)		(55	)		(56	)		(67	)		(101	)		(98	)		(94	)		(73	)		(70	)		(71	)		(87	)
Impairment loss		0			0			0			0			0			0			0			(443	)		0			0			0			0
Operating income		444			558			674			531			702			737			890			208			567			692			711			608
OIBDA margin total		51.5	%		52.2	%		51.9	%		45.7	%		53.4	%		46.8	%		48.8	%		44.0	%		48.1	%		50.7	%		50.4	%		47.1	%
Less: Depreciation as a percentage of net operating revenues		(18.1	)%		(16.6	)%		(14.6	)%		(16.5	)%		(16.9	)%		(14.7	)%		(14.1	)%		(14.9	)%		(15.7	)%		(15.2	)%		(16.1	)%		(17.0	)%
Less: Amortization as a percentage of net operating revenues		(3.6	)%		(3.1	)%		(2.8	)%		(2.8	)%		(3.2	)%		(3.9	)%		(3.4	)%		(3.7	)%		(3.7	)%		(3.3	)%		(3.1	)%		(3.8	)%
Less: Impairment loss as a percentage of net operating revenues		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		(17.3	)%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income as a percentage of net operating revenues		29.8	%		32.5	%		34.5	%		26.4	%		33.3	%		28.2	%		31.3	%		8.1	%		28.7	%		32.2	%		31.2	%		26.3	%

---

Russia

 

CONSOLIDATED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		1,279			1,460			1,653			1,702			1,797			2,239			2,426			2,157			1,661			1,838			1,953			1,996
Gross margin		1,065			1,209			1,363			1,410			1,445			1,730			1,852			1,619			1,260			1,431			1,499			1,526
Gross margin, %		83.3	%		82.8	%		82.5	%		82.8	%		80.4	%		77.3	%		76.3	%		75.1	%		75.9	%		77.9	%		76.8	%		76.5	%
OIBDA		676			780			871			773			993			1,060			1,215			948			803			942			988			941
OIBDA, %		52.9	%		53.4	%		52.7	%		45.4	%		55.3	%		47.3	%		50.1	%		43.9	%		48.3	%		51.3	%		50.6	%		47.1	%
SG&A		375			419			477			633			433			657			627			667			441			479			500			578
including Sales & Marketing Expenses		114			141			159			186			158			181			203			246			132			147			158			191
including advertising		42			56			56			79			56			74			72			86			19			31			30			48
including General & Administrative Costs		261			278			318			447			276			476			424			421			309			332			342			387
SG&A, %		29.3	%		28.7	%		28.9	%		37.2	%		24.1	%		29.3	%		25.8	%		30.9	%		26.6	%		26.1	%		25.6	%		29.0	%
Net income (loss)		280			356			423			364			616			449			259			-445			-237			672			440			313
Capital Expenditures		199.6			189.0			216.9			467.2			207.1			423.7			504.1			641.5			90.5			106.8			90.3			331.5
MOBILE (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		1,279			1,460			1,653			1,702			1,675			1,862			2,037			1,797			1,349			1,536			1,643			1,671
including Mobile Interconnect		171			203			224			253			253			270			289			263			195			218			227			249
Mobile OIBDA		676			780			871			773			959			969			1,104			840			685			823			873			824
Mobile OIBDA, %		52.9	%		53.4	%		52.7	%		45.4	%		57.3	%		52.0	%		54.2	%		46.7	%		50.8	%		53.6	%		53.1	%		49.3	%
Subscribers (‘000)		38,631			40,140			41,802			42,221			42,079			42,485			45,093			47,677			49,351			49,971			51,028			50,886
ARPU, US$		11			12			13			14			13			15			15			13			9			10			11			11
MOU, min		161			193			209			204			199			220			229			228			203			212			214			218
Churn 3 months active base (quarterly), %		n/a			7.5	%		8.1	%		9.1	%		9.2	%		8.7	%		7.7	%		9.0	%		8.4	%		10.5	%		10.9	%		12.9	%
FIXED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		0			0			0			0			132			414			445			439			392			404			434			458
including business segment		0			0			0			0			68			207			213			201			170			164			160			162
including wholesale segment		0			0			0			0			50			160			186			190			181			196			229			242
including residential segment		0			0			0			0			14			47			46			48			41			44			45			54
Fixed OIBDA		0			0			0			0			34			91			111			108			118			119			115			117
Fixed OIBDA, %		0			0			0			0			25.8	%		22.0	%		24.9	%		24.6	%		30.1	%		29.5	%		26.5	%		25.5	%
Broadband subscribers (‘000)		0			0			0			0			530			604			764			1,182			1,498			1,659			1,833			2,111
Broadband services ARPU, blended, US$		0			0			0			0			17.6			16.9			15.4			13.7			11.0			10.2			10.6			11.9
Reconciliation of OIBDA total (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
OIBDA		676			780			871			773			993			1,060			1,215			948			803			942			988			941
Depreciation		(232	)		(240	)		(250	)		(268	)		(288	)		(310	)		(331	)		(293	)		(242	)		(263	)		(287	)		(304	)
Amortization		(29	)		(29	)		(29	)		(31	)		(35	)		(61	)		(54	)		(52	)		(39	)		(39	)		(40	)		(47	)
Impairment loss		0			0			0			0			0			0			0			(315	)		0			0			0			0
Operating income		415			511			592			474			670			689			830			288			522			640			661			590
OIBDA margin total		52.9	%		53.4	%		52.7	%		45.4	%		55.3	%		47.3	%		50.1	%		43.9	%		48.3	%		51.3	%		50.6	%		47.1	%
Less: Depreciation as a percentage of net operating revenues		(18.2	)%		(16.4	)%		(15.1	)%		(15.8	)%		(16.1	)%		(13.8	)%		(13.7	)%		(13.5	)%		(14.6	)%		(14.4	)%		(14.8	)%		(15.1	)%
Less: Amortization as a percentage of net operating revenues		(2.3	)%		(2.0	)%		(1.8	)%		(1.8	)%		(1.9	)%		(2.7	)%		(2.2	)%		(2.4	)%		(2.3	)%		(2.1	)%		(2.0	)%		(2.4	)%
Less: Impairment loss as a percentage of net operating revenues		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		(14.6	)%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income as a percentage of net operating revenues		32.4	%		35.0	%		35.8	%		27.8	%		37.3	%		30.8	%		34.2	%		13.4	%		31.4	%		34.8	%		33.8	%		29.6	%

---

CIS

 

CONSOLIDATED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		210.9			260.1			305.7			314.4			316.9			388.1			439.8			419.6			332.6			331.1			353.6			341.6
Gross margin		156.8			194.7			226.2			232.9			230.8			282.0			298.0			298.1			244.8			243.5			262.1			249.4
Gross margin, %		74.3	%		74.9	%		74.0	%		74.1	%		72.8	%		72.7	%		67.8	%		71.0	%		73.6	%		73.5	%		74.1	%		73.0	%
OIBDA		90.0			116.9			144.0			145.2			134.3			164.4			174.7			179.3			149.7			152.4			169.8			154.7
OIBDA, %		42.7	%		44.9	%		47.1	%		46.2	%		42.3	%		42.4	%		39.7	%		42.7	%		45.0	%		46.0	%		48.0	%		45.3	%
SG&A		65.1			76.4			79.4			83.9			94.3			115.4			121.4			116.9			92.5			88.3			91.0			94.1
including Sales & Marketing Expenses		22.3			26.0			27.3			33.1			29.0			33.9			39.1			39.5			22.7			19.6			24.6			24.9
including advertising		9.2			10.7			10.5			13.0			13.4			15.4			14.5			15.3			6.6			5.2			6.9			8.3
including General & Administrative Costs		42.8			50.4			52.1			50.8			65.3			81.5			82.3			77.4			69.8			68.7			66.4			69.2
SG&A, %		30.9	%		29.4	%		26.0	%		26.7	%		29.8	%		29.7	%		27.6	%		27.9	%		27.8	%		26.7	%		25.7	%		27.5	%
Net income (loss)		-3.1			3.7			35.6			4.6			-14.3			22.3			13.3			-278.5			-11.0			26.1			2.7			-7.6
Capital Expenditures		103.9			145.8			121.9			328.6			146.0			238.9			186.8			203.5			9.5			24.6			24.5			68.1
MOBILE (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		176.7			224.9			268.1			278.1			270.9			318.9			371.2			354.1			275.0			275.0			294.3			284.4
including Mobile Interconnect		28.4			37.7			45.3			50.4			47.0			53.3			66.2			63.7			46.3			48.0			53.4			52.2
Mobile OIBDA		73.8			98.4			124.5			122.4			112.8			134.7			143.6			149.1			122.8			124.9			140.4			126.9
Mobile OIBDA, %		41.8	%		43.8	%		46.4	%		44.0	%		41.7	%		42.2	%		38.7	%		42.1	%		44.7	%		45.4	%		47.7	%		44.6	%
Subscribers (‘000)		7,153			7,562			8,884			9,519			10,214			11,222			12,665			13,352			13,373			13,626			14,235			13,342
FIXED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		34.2			35.2			37.6			36.3			47.0			74.1			78.6			73.0			63.9			63.3			69.2			66.8
including business segment		0			0			0			0			6.5			20.1			22.1			18			14			13.4			13.5			19
including wholesale segment		0			0			0			0			3.8			14.2			17.4			16.4			16.4			18.1			22.2			27.3
including residential segment		34.2			35.2			37.6			36.3			36.7			39.8			39.1			38.6			33.5			31.8			33.5			20.5
Fixed OIBDA		16.2			18.5			19.5			22.8			21.5			29.7			31.1			30.2			26.9			27.5			29.4			27.8
Fixed OIBDA, %		47.4	%		52.6	%		51.9	%		62.8	%		45.7	%		40.1	%		39.6	%		41.4	%		42.1	%		43.4	%		42.5	%		41.6	%
Broadband subscribers (‘000)		0			0			0			0			12.1			13.1			21.5			39.3			61.9			79.8			96.8			145.8
Reconciliation of OIBDA total (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
OIBDA		90.0			116.9			144.0			145.2			134.3			164.4			174.7			179.3			149.7			152.4			169.8			154.7
Depreciation		(36.5	)		(44.9	)		(35.7	)		(62.8	)		(69.7	)		(75.3	)		(67.6	)		(85.2	)		(66.4	)		(61.5	)		(73.5	)		(86.5	)
Amortization		(24.8	)		(25.4	)		(26.2	)		(25.5	)		(32.3	)		(39.3	)		(44.7	)		(42.7	)		(33.4	)		(31.0	)		(30.7	)		(39.7	)
Impairment loss		—			—			—			—			—			—			—			(90.1	)		—			—			—			—
Operating income		28.7			46.6			82.1			56.9			32.3			49.8			62.4			-38.7			49.9			59.9			65.6			28.5
OIBDA margin total		42.7	%		44.9	%		47.1	%		46.2	%		42.3	%		42.4	%		39.7	%		42.7	%		45.0	%		46.0	%		48.0	%		45.3	%
Less: Depreciation as a percentage of net operating revenues		(17.3	)%		(17.2	)%		(11.6	)%		(20.0	)%		(21.9	)%		(19.5	)%		(15.3	)%		(20.2	)%		(20.0	)%		(18.5	)%		(20.7	)%		(25.4	)%
Less: Amortization as a percentage of net operating revenues		(11.8	)%		(9.8	)%		(8.6	)%		(8.1	)%		(10.2	)%		(10.1	)%		(10.2	)%		(10.2	)%		(10.0	)%		(9.4	)%		(8.7	)%		(11.6	)%
Less: Impairment loss as a percentage of net operating revenues		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		(21.5	)%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income as a percentage of net operating revenues		13.6	%		17.9	%		26.9	%		18.1	%		10.2	%		12.8	%		14.2	%		-9.2	%		15.0	%		18.1	%		18.6	%		8.3	%

---

Kazakhstan

 

CONSOLIDATED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		119.4			149.3			167.1			174.6			162.8			185.3			198.6			196.9			153.9			157.1			171.9			170.4
Gross margin		88.2			112.0			122.1			128.4			118.9			140.8			152.6			148.8			116.7			120.3			136.0			133.0
Gross margin, %		73.9	%		75.0	%		73.1	%		73.5	%		73.0	%		76.0	%		76.8	%		75.6	%		75.8	%		76.6	%		79.1	%		78.1	%
OIBDA		62.0			80.3			88.1			92.2			82.0			96.4			106.1			97.7			78.7			85.2			101.7			93.9
OIBDA, %		51.9	%		53.8	%		52.7	%		52.8	%		50.4	%		52.0	%		53.4	%		49.6	%		51.1	%		54.2	%		59.2	%		55.1	%
SG&A		25.4			31.7			32.7			33.8			34.8			43.5			45.9			50.4			37.4			34.5			34.4			39.3
including Sales & Marketing Expenses		11.0			14.2			13.8			17.1			12.9			15.1			17.6			22.7			11.9			8.8			10.4			12.7
including advertising		3.7			4.5			5.0			5.5			4.7			5.8			5.5			8.8			3.0			1.2			1.9			3.8
including General & Administrative Costs		14.4			17.5			18.9			16.7			21.9			28.4			28.3			27.7			25.5			25.7			24.0			26.6
SG&A, %		21.3	%		21.2	%		19.6	%		19.4	%		21.4	%		23.5	%		23.1	%		25.6	%		24.3	%		22.0	%		20.0	%		23.1	%
Net income (loss)		13.1			16.4			21.7			19.8			14.1			19.5			29.9			76.4			-12.5			30.0			40.8			25.8
Capital Expenditures		31.2			45.8			40.5			96.4			42.6			55.4			77.1			79.7			3.3			11.0			10.0			19.5
MOBILE (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		119.4			149.3			167.1			174.6			162.1			182.5			195.9			193.7			151.6			154.8			169.5			167.8
including Mobile Interconnect		20.5			26.5			28.5			33.0			28.4			30.9			32.2			31.4			23.4			23.3			25.4			25.0
Mobile OIBDA		62.0			80.3			88.1			92.2			81.6			94.2			102.9			93.8			76.1			82.0			97.8			89.4
Mobile OIBDA, %		51.9	%		53.8	%		52.7	%		52.8	%		50.3	%		51.6	%		52.5	%		48.4	%		50.2	%		53.0	%		57.7	%		53.3	%
Subscribers (‘000)		3,501			3,858			4,343			4,604			4,777			5,098			5,614			6,270			6,377			6,635			6,835			6,135
ARPU, US$		12.2			13.6			13.6			13.0			11.6			12.3			12.1			10.8			7.8			7.9			8.2			8.5
MOU, min		72.3			88.8			112.7			98.9			99.1			109.7			108.1			100.5			81.1			90.7			98.1			102.3
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			9.8	%		9.5	%		7.6	%		7.4	%		7.3	%		9.2	%		5.7	%		9.3	%		22.2	%
FIXED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		0			0			0			0			1.1			4.9			6.0			7.1			4.9			5.9			6.7			7.5
including business segment		0			0			0			0			0.3			1.0			0.8			1.0			0.7			0.8			0.5			0.5
including wholesale segment		0			0			0			0			0.8			3.9			5.2			6.0			4.1			5.0			6.1			6.9
including residential segment		0			0			0			0			0.001			0.003			0.003			0.05			0.1			0.1			0.1			0.1
Fixed OIBDA		0			0			0			0			0.4			2.2			3.2			3.9			2.6			3.2			3.9			4.5
Fixed OIBDA, %		0			0			0			0			36.4	%		44.9	%		53.3	%		54.9	%		53.1	%		54.2	%		58.2	%		60.0	%
Broadband subscribers (‘000)																							0.2			0.2			0.3			0.3			1.3
Reconciliation of OIBDA total (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
OIBDA		62.0			80.3			88.1			92.2			82.0			96.4			106.1			97.7			78.7			85.2			101.7			93.9
Depreciation		(15.9	)		(17.5	)		(14.9	)		(20.2	)		(21.6	)		(25.7	)		(24.0	)		(28.7	)		(23.9	)		(21.6	)		(24.9	)		(27.4	)
Amortization		(9.2	)		(9.5	)		(9.1	)		(9.7	)		(9.7	)		(11.1	)		(15.9	)		(16.0	)		(14.1	)		(12.8	)		(12.7	)		(13.0	)
Operating income		36.9			53.3			64.1			62.3			50.7			59.6			66.2			53.0			40.7			50.8			64.1			53.5
OIBDA margin total		51.9	%		53.8	%		52.7	%		52.8	%		50.4	%		52.0	%		53.4	%		49.6	%		51.1	%		54.2	%		59.2	%		55.1	%
Less: Depreciation as a percentage of net operating revenues		(13.3	)%		(11.7	)%		(8.9	)%		(11.5	)%		(13.3	)%		(13.8	)%		(12.1	)%		(14.6	)%		(15.5	)%		(13.8	)%		(14.5	)%		(16.1	)%
Less: Amortization as a percentage of net operating revenues		(7.7	)%		(6.4	)%		(5.4	)%		(5.6	)%		(6.0	)%		(6.0	)%		(8.0	)%		(8.1	)%		(9.2	)%		(8.1	)%		(7.4	)%		(7.6	)%
Operating income as a percentage of net operating revenues		30.9	%		35.7	%		38.4	%		35.7	%		31.1	%		32.2	%		33.3	%		26.9	%		26.4	%		32.3	%		37.3	%		31.4	%

---

Ukraine

 

CONSOLIDATED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		16.3			23.8			37.0			34.5			44.8			71.2			94.2			70.5			47.4			51.1			56.6			48.1
Gross margin		9.5			13.5			23.3			20.9			26.7			39.5			31.6			33.9			26.6			30.1			33.4			26.5
Gross margin, %		58.3	%		56.7	%		63.0	%		60.6	%		59.6	%		55.5	%		33.5	%		48.1	%		56.1	%		58.9	%		59.0	%		55.1	%
OIBDA		-6.5			-3.1			6.5			3.6			3.2			9.4			-1.6			11.6			6.3			10.0			12.1			7.6
OIBDA, %		n/a			n/a			17.6	%		10.4	%		7.1	%		13.2	%		n/a			16.5	%		13.3	%		19.6	%		21.4	%		15.8	%
SG&A		16.0			16.5			16.5			17.5			23.4			30.0			32.7			21.6			19.5			19.5			20.7			18.7
including Sales & Marketing Expenses		5.8			5.5			5.3			5.2			6.7			7.9			8.7			4.7			3.5			3.8			5.1			3.5
including advertising		3.9			3.7			2.7			3.5			4.7			5.1			4.5			1.9			1.7			1.6			2.3			1.6
including General & Administrative Costs		10.2			11.0			11.2			12.3			16.7			22.1			24.0			16.9			16.0			15.7			15.6			15.2
SG&A, %		98.2	%		69.3	%		44.6	%		50.7	%		52.2	%		42.1	%		34.7	%		30.6	%		41.1	%		38.2	%		36.6	%		38.9	%
Net income (loss)		-18.4			-17.2			-6.4			-17.6			-19.7			-5.8			-36.7			-323.1			-14.4			-10.5			-38.2			-26.9
Capital Expenditures		29.3			46.0			26.0			55.2			26.6			54.1			46.9			57.8			2.9			2.9			3.0			11.0
MOBILE (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		16.3			23.8			37.0			34.5			36.4			45.7			68.2			47.5			26.4			29.7			34.0			25.2
including Mobile Interconnect		5.4			7.6			10.9			10.9			11.5			13.4			20.0			14.8			8.8			9.2			9.8			8.1
Mobile OIBDA		-6.5			-3.1			6.5			3.6			1.1			2.5			-8.9			5.7			-0.1			2.5			4.5			0.6
Mobile OIBDA, %		n/a			n/a			17.6	%		10.4	%		3.0	%		5.5	%		n/a			12.0	%		n/a			8.4	%		13.2	%		2.4	%
Subscribers (‘000)		1,953			1,822			2,212			1,941			1,971			2,111			2,403			2,052			1,894			1,934			2,199			2,005
ARPU, US$		3.0			4.2			5.8			5.6			6.1			7.5			9.7			7.0			4.5			5.2			5.4			3.9
MOU, min		138.0			159.9			168.2			183.2			210.2			231.0			261.5			230.0			213.3			217.8			203.7			201.3
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			35.8	%		20.1	%		16.9	%		15.9	%		32.2	%		21.9	%		15.1	%		14.4	%		29.4	%
FIXED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		0			0			0			0			8.9			28.4			32.5			26.4			24.6			24.8			28.1			27.5
including business segment		0			0			0			0			5.5			16.9			18.9			14.8			11.1			10.2			10.5			10.3
including wholesale segment		0			0			0			0			3.0			10.2			12.2			10.2			12.2			13.0			16.0			15.6
including residential segment		0			0			0			0			0.4			1.3			1.4			1.4			1.3			1.6			1.6			1.6
Fixed OIBDA		0			0			0			0			2.1			6.9			7.3			5.9			6.4			7.5			7.6			7.0
Fixed OIBDA, %		0			0			0			0			23.6	%		24.3	%		22.5	%		22.3	%		26.0	%		30.2	%		27.0	%		25.5	%
Broadband subscribers (‘000)		0			0			0			0			12			13			16			24			40			53			70			109
Broadband services ARPU, blended, US$		0			0			0			0			15.0			15.4			15.7			13.5			8.8			8.1			6.8			5.6
Reconciliation of OIBDA total (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
OIBDA		(6.5	)		(3.1	)		6.5			3.6			3.2			9.4			-1.6			11.6			6.3			10.0			12.1			7.6
Depreciation		(3.2	)		(4.3	)		(4.5	)		(13.0	)		(11.2	)		(15.0	)		(18.0	)		(14.9	)		(10.7	)		(11.9	)		(14.1	)		(13.7	)
Amortization		(5.2	)		(5.2	)		(5.2	)		(3.1	)		(7.2	)		(12.4	)		(12.8	)		(10.3	)		(6.8	)		(6.8	)		(6.7	)		(16.1	)
Impairment loss		—			—			—			—			—			—			—			(90.1	)		—			—			—			—
Operating income		(14.9	)		(12.6	)		(3.2	)		(12.5	)		(15.2	)		(18.0	)		(32.4	)		(103.7	)		(11.2	)		(8.7	)		(8.7	)		(22.2	)
OIBDA margin total		n/a			n/a			17.6	%		10.4	%		7.1	%		13.2	%		n/a			16.5	%		13.3	%		19.6	%		21.4	%		15.8	%
Less: Depreciation as a percentage of net operating revenues		n/a			n/a			(12.1	)%		(37.6	)%		(24.9	)%		(21.1	)%		n/a			(21.2	)%		(22.6	)%		(23.3	)%		(25.0	)%		(28.5	)%
Less: Amortization as a percentage of net operating revenues		n/a			n/a			(14.1	)%		(9.0	)%		(16.1	)%		(17.4	)%		n/a			(14.6	)%		(14.3	)%		(13.3	)%		(11.8	)%		(33.5	)%
Less: Impairment loss as a percentage of net operating revenues		n/a			n/a			0.0	%		0.0	%		0.0	%		0.0	%		n/a			(127.8	)%		0.0	%		0.0	%		0.0	%		0.0	%
Operating income as a percentage of net operating revenues		n/a			n/a			(8.6	)%		(36.2	)%		(33.9	)%		(25.3	)%		n/a			(147.1	)%		(23.6	)%		(17.0	)%		(15.4	)%		(46.2	)%

---

Uzbekistan

 

CONSOLIDATED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		18.2			23.2			30.2			36.5			39.5			52.0			58.4			66.5			58.5			52.6			50.1			50.2
Gross margin		15.2			20.0			25.8			31.0			33.4			43.0			48.6			52.8			47.1			41.2			37.7			37.9
Gross margin, %		83.5	%		86.2	%		85.4	%		84.9	%		84.6	%		82.7	%		83.2	%		79.4	%		80.5	%		78.3	%		75.2	%		75.5	%
OIBDA		8.7			11.4			16.9			17.8			20.9			27.8			33.0			34.2			33.1			26.9			23.5			23.0
OIBDA, %		47.8	%		49.1	%		56.0	%		48.8	%		52.9	%		53.5	%		56.5	%		51.4	%		56.6	%		51.1	%		46.9	%		45.8	%
SG&A		6.4			8.4			8.7			13.1			12.3			14.9			15.4			18.3			13.6			13.9			13.8			14.3
including Sales & Marketing Expenses		2.8			2.5			3.9			5.3			4.9			5.1			6.6			7.1			3.8			3.7			4.8			4.3
including advertising		0.7			0.9			1.1			1.4			2.0			1.9			2.3			2.3			0.9			1.4			1.6			1.0
including General & Administrative Costs		3.6			5.9			4.8			7.8			7.4			9.8			8.8			11.2			9.8			10.2			9.0			10.0
SG&A, %		35.2	%		36.2	%		28.8	%		35.9	%		31.1	%		28.7	%		26.4	%		27.5	%		23.2	%		26.4	%		27.5	%		28.5	%
Net income (loss)		2.5			4.3			6.9			6.0			7.5			14.4			22.0			11.8			9.7			5.3			1.8			-1.5
Capital Expenditures		7.9			18.5			23.8			83.6			48.0			82.8			28.4			17.2			1.1			7.4			7.2			21.1
MOBILE (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		18.2			23.2			30.2			36.5			38.7			49.5			55.5			63.5			55.5			49.5			46.8			47.5
including Mobile Interconnect		0.002			0.003			0.004			0.005			0.006			0.009			0.010			3.4			3.0			3.8			5.0			5.5
Mobile OIBDA		8.7			11.4			16.9			17.8			20.6			27.2			32.0			33.0			31.9			25.7			22.2			21.9
Mobile OIBDA, %		47.8	%		49.1	%		56.0	%		48.8	%		53.2	%		54.9	%		57.7	%		52.0	%		57.5	%		51.9	%		47.4	%		46.1	%
Subscribers (‘000)		1,106.3			1,192.4			1,586.9			2,119.6			2,422.2			2,754.2			3,148.0			3,636.2			3,653.1			3,604.6			3,652.0			3,515.0
ARPU, US$		6.7			7.2			7.6			6.8			5.8			6.6			6.5			6.5			5.2			4.7			4.5			4.6
MOU, min		242.2			265.6			289.8			283.4			265.3			294.6			298.5			288.6			238.6			225.6			409.3			387.3
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			11.2	%		12.8	%		13.1	%		14.2	%		14.9	%		15.1	%		11.2	%		17.4	%		20.1	%
FIXED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		0			0			0			0			0.8			2.6			2.9			3			3			3.1			3.3			2.8
including business segment		0			0			0			0			0.7			2.3			2.3			2.2			2.3			2.3			2.5			2.1
including wholesale segment		0			0			0			0			0.03			0.1			0.1			0.1			0.0			0.1			0.1			0.1
including residential segment		0			0			0			0			0.06			0.2			0.5			0.7			0.7			0.7			0.7			0.6
Fixed OIBDA		0			0			0			0			0.3			0.6			1			1.2			1.2			1.2			1.3			1.1
Fixed OIBDA, %		0			0			0			0			37.5	%		23.1	%		34.5	%		40.0	%		40.0	%		38.7	%		39.4	%		39.3	%
Broadband subscribers (‘000)		0			0			0			0			0			0			0			5.8			6.8			7.6			8.3			9
Reconciliation of OIBDA total (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
OIBDA		8.7			11.4			16.9			17.8			20.9			27.8			33.0			34.2			33.1			26.9			23.5			23.0
Depreciation		(3.1	)		(3.3	)		(4.0	)		(5.1	)		(6.7	)		(6.8	)		(7.2	)		(8.9	)		(11.4	)		(11.2	)		(12.4	)		(20.7	)
Amortization		(3.4	)		(3.4	)		(3.4	)		(3.5	)		(3.8	)		(3.7	)		(3.8	)		(4.6	)		(4.1	)		(3.6	)		(3.5	)		(2.9	)
Operating income		2.2			4.7			9.5			9.2			10.4			17.3			22.0			20.7			17.6			12.1			7.6			-0.6
OIBDA margin total		47.8	%		49.1	%		56.0	%		48.8	%		52.9	%		53.5	%		56.5	%		51.4	%		56.6	%		51.1	%		46.9	%		45.8	%
Less: Depreciation as a percentage of net operating revenues		(17.0	)%		(14.1	)%		(13.2	)%		(14.0	)%		(17.0	)%		(13.1	)%		(12.3	)%		(13.4	)%		(19.5	)%		(21.3	)%		(24.7	)%		(41.2	)%
Less: Amortization as a percentage of net operating revenues		(18.7	)%		(14.7	)%		(11.3	)%		(9.6	)%		(9.6	)%		(7.1	)%		(6.5	)%		(6.9	)%		(7.0	)%		(6.8	)%		(7.0	)%		(5.8	)%
Operating income as a percentage of net operating revenues		12.1	%		20.3	%		31.5	%		25.2	%		26.3	%		33.3	%		37.7	%		31.1	%		30.1	%		23.0	%		15.2	%		-1.2	%

---

Armenia

 

CONSOLIDATED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		54.1			58.4			63.4			59.8			59.1			64.7			68.8			63.7			52.7			49.2			51.4			47.3
Gross margin		42.4			46.0			49.8			47.3			45.8			50.0			52.6			48.7			41.3			37.8			38.8			35.3
Gross margin, %		78.4	%		78.8	%		78.5	%		79.1	%		77.5	%		77.3	%		76.5	%		76.5	%		78.4	%		76.8	%		75.5	%		74.6	%
OIBDA		27.3			30.1			32.9			32.5			29.1			30.3			33.5			31.7			27.2			24.8			26.3			22.7
OIBDA, %		50.5	%		51.5	%		51.9	%		54.3	%		49.2	%		46.8	%		48.7	%		49.8	%		51.6	%		50.4	%		51.2	%		48.0	%
SG&A		14.2			14.8			15.9			13.4			16.7			18.7			18.5			16.7			13.2			11.8			12.1			12.6
including Sales & Marketing Expenses		1.7			2.2			2.4			3.5			2.7			3.8			3.7			2.5			1.7			1.6			1.6			2.3
including advertising		0.6			0.8			0.8			1.7			1.2			1.6			1.1			1.2			0.6			0.6			0.5			1.1
including General & Administrative Costs		12.5			12.6			13.5			9.9			14.0			14.9			14.8			14.2			11.5			10.2			10.5			10.3
SG&A, %		26.2	%		25.3	%		25.1	%		22.4	%		28.3	%		28.9	%		26.9	%		26.2	%		25.0	%		24.0	%		23.5	%		26.6	%
Net income (loss)		2.6			4.0			16.0			0.3			-15.0			-1.3			3.7			-12.0			10.0			4.2			2.7			-1.6
Capital Expenditures		5.4			20.4			20.7			44.3			14.6			20.9			19.1			23.7			0.2			0.4			1.3			7.8
MOBILE (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		19.9			23.2			25.8			23.5			22.9			26.4			31.6			27.2			21.3			19.7			20.3			18.3
including Mobile Interconnect		2.3			3.2			4.1			4.2			4.5			5.3			8.0			7.1			5.2			5.1			5.4			5.1
Mobile OIBDA		11.1			11.6			13.4			9.7			10.4			10.3			13.9			12.5			10.5			9.2			9.7			7.5
Mobile OIBDA, %		55.8	%		50.0	%		51.9	%		41.3	%		45.4	%		39.0	%		44.0	%		46.0	%		49.3	%		46.7	%		47.8	%		41.0	%
Subscribers (‘000)		439.9			471.0			447.0			442.4			520.4			654.5			783.6			544.3			480.8			486.3			502.0			545.0
ARPU, US$		14.5			17.3			17.6			17.4			16.1			15.3			13.9			13.6			13.9			13.6			13.7			11.5
MOU, min		141.3			185.1			181.0			171.8			158.9			164.9			139.9			150.0			174.7			238.4			269.0			268.2
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			12.3	%		28.8	%		13.1	%		18.5	%		45.7	%		24.5	%		12.2	%		11.4	%		10.5	%
Subscriber market share, %
FIXED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		34.2			35.2			37.6			36.3			36.2			38.3			37.2			36.5			31.4			29.5			31.1			29.0
including business segment		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			6.0
including wholesale segment		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			4.7
including residential segment		34.2			35.2			37.6			36.3			36.2			38.3			37.2			36.5			31.4			29.5			31.1			18.3
Fixed OIBDA		16.2			18.5			19.5			22.8			18.7			20.0			19.6			19.2			16.7			15.6			16.6			15.2
Fixed OIBDA, %		47.4	%		52.6	%		51.9	%		62.8	%		51.7	%		52.2	%		52.7	%		52.6	%		53.2	%		52.9	%		53.4	%		52.4	%
Broadband subscribers (‘000)		0			0			0			0			0			0			5.4			9.2			15.3			19.2			18.1			26.2
Reconciliation of OIBDA total (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
OIBDA		27.3			30.1			32.9			32.5			29.1			30.3			33.5			31.7			27.2			24.8			26.3			22.7
Depreciation		(13.9	)		(18.7	)		(10.6	)		(21.9	)		(27.0	)		(22.8	)		(13.2	)		(26.4	)		(14.0	)		(10.5	)		(15.7	)		(17.0	)
Amortization		(5.9	)		(5.9	)		(7.0	)		(7.7	)		(10.1	)		(9.8	)		(10.0	)		(9.9	)		(6.6	)		(5.8	)		(5.8	)		(5.7	)
Operating income		7.5			5.5			15.3			2.9			(8.0	)		(2.3	)		10.3			(4.6	)		6.6			8.5			4.8			—
OIBDA margin total		50.5	%		51.5	%		51.9	%		54.3	%		49.2	%		46.8	%		48.7	%		49.8	%		51.6	%		50.4	%		51.2	%		48.0	%
Less: Depreciation as a percentage of net operating revenues		(25.7	)%		(32.0	)%		(16.8	)%		(36.6	)%		(45.6	)%		(35.3	)%		(19.2	)%		(41.5	)%		(26.6	)%		(21.3	)%		(30.6	)%		(35.9	)%
Less: Amortization as a percentage of net operating revenues		(10.9	)%		(10.1	)%		(11.0	)%		(12.9	)%		(17.1	)%		(15.1	)%		(14.5	)%		(15.5	)%		(12.5	)%		(11.8	)%		(11.3	)%		(12.1	)%
Operating income as a percentage of net operating revenues		13.9	%		9.4	%		24.1	%		4.8	%		(13.5	)%		(3.6	)%		15.0	%		(7.2	)%		12.5	%		17.3	%		9.3	%		0.0	%

---

Tajikistan

 

CONSOLIDATED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		2.9			5.2			7.7			8.1			8.4			11.2			14.8			16.4			14.4			14.3			14.9			15.6
Gross margin		1.6			3.2			5.2			5.1			5.2			7.2			10.0			11.5			10.3			10.5			11.4			11.6
Gross margin, %		55.2	%		61.5	%		67.5	%		63.0	%		61.9	%		64.3	%		67.6	%		70.1	%		71.5	%		73.4	%		76.5	%		74.4	%
OIBDA		-0.3			0.1			1.6			1.4			1.3			2.6			4.8			5.3			4.9			5.4			5.2			7.1
OIBDA, %		n/a			1.9	%		20.8	%		17.3	%		15.5	%		23.2	%		32.4	%		32.3	%		34.0	%		37.8	%		34.9	%		45.5	%
SG&A		1.9			3.1			3.5			3.5			4.0			4.5			5.2			6.2			5.4			5.1			6.2			4.5
including Sales & Marketing Expenses		0.8			1.3			1.5			1.4			1.2			1.4			1.7			1.7			1.3			1.1			1.0			1.0
including advertising		0.3			0.7			0.5			0.5			0.6			0.6			0.5			0.5			0.3			0.2			0.3			0.3
including General & Administrative Costs		1.1			1.8			2.0			2.1			2.8			3.1			3.5			4.5			4.1			4.0			5.2			3.5
SG&A, %		65.5	%		59.6	%		45.5	%		43.2	%		47.6	%		40.2	%		35.1	%		37.8	%		37.5	%		35.7	%		41.6	%		28.8	%
Net income (loss)		-1.0			-1.8			-0.3			-2.5			-1.2			-3.0			-0.3			-0.7			-0.2			0.0			-0.3			0.6
Capital Expenditures		13.5			5.7			6.1			20.2			7.2			13.5			6.4			18.0			0.4			0.8			0.5			5.4
MOBILE (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		2.9			5.2			7.7			8.1			8.4			11.2			14.8			16.4			14.4			14.3			14.9			15.6
including Mobile Interconnect		0.2			0.4			1.7			2.1			2.0			2.9			4.7			5.4			4.3			4.7			5.4			6.0
Mobile OIBDA		-0.3			0.1			1.6			1.4			1.3			2.6			4.8			5.3			4.9			5.4			5.2			7.1
Mobile OIBDA, %		n/a			1.9	%		20.8	%		17.3	%		15.5	%		23.2	%		32.4	%		32.3	%		34.0	%		37.8	%		34.9	%		45.5	%
Subscribers (‘000)		145.3			204.9			268.4			339.4			377.9			435.3			526.6			624.6			722.3			677.1			706.0			743.0
ARPU, US$		8.7			10.1			10.8			9.0			8.0			9.4			10.4			9.6			7.1			6.9			7.2			7.2
MOU, min		205.8			224.2			230.3			216.3			205.8			241.1			255.9			243.4			171.7			173.1			173.3			173.6
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			5.3	%		8.6	%		9.7	%		10.6	%		12.7	%		2.7	%		20.6	%		14.9	%		14.7	%
FIXED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		0			0			0			0			0			0			0			0			0			0			0			0
including business segment		0			0			0			0			0			0			0			0			0			0			0			0
including wholesale segment		0			0			0			0			0			0			0			0			0			0			0			0
including residential segment		0			0			0			0			0			0			0			0			0			0			0			0
Fixed OIBDA		0			0			0			0			0			0			0			0			0			0			0			0
Fixed OIBDA, %		0			0			0			0			0			0			0			0			0			0			0			0
Broadband subscribers (‘000)		0			0			0			0			0			0			0			0			0			0			0			0
Broadband services ARPU, blended, US$		0			0			0			0			0			0			0			0			0			0			0			0
Reconciliation of OIBDA total (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
OIBDA		(0.3	)		0.1			1.6			1.4			1.3			2.6			4.8			5.3			4.9			5.4			5.2			7.1
Depreciation		(0.3	)		(0.6	)		(0.9	)		(1.5	)		(1.7	)		(3.1	)		(3.1	)		(3.5	)		(3.5	)		(3.5	)		(3.5	)		(4.7	)
Amortization		(0.2	)		(0.2	)		(0.2	)		(0.2	)		(0.2	)		(0.3	)		(0.2	)		(0.2	)		(0.2	)		(0.3	)		(0.3	)		(0.3	)
Operating income		(0.8	)		(0.7	)		0.5			(0.3	)		(0.6	)		(0.8	)		1.5			1.6			1.2			1.6			1.4			2.1
OIBDA margin total		n/a			1.9	%		20.8	%		17.3	%		15.5	%		23.2	%		32.4	%		32.3	%		34.0	%		37.8	%		34.9	%		45.5	%
Less: Depreciation as a percentage of net operating revenues		n/a			(11.6	)%		(11.7	)%		(18.5	)%		(20.2	)%		(27.6	)%		(20.9	)%		(21.3	)%		(24.3	)%		(24.5	)%		(23.5	)%		(30.1	)%
Less: Amortization as a percentage of net operating revenues		n/a			(3.8	)%		(2.6	)%		(2.5	)%		(2.4	)%		(2.7	)%		(1.4	)%		(1.2	)%		(1.4	)%		(2.1	)%		(2.0	)%		(1.9	)%
Operating income as a percentage of net operating revenues		n/a			(13.5	)%		6.5	%		(3.7	)%		(7.1	)%		(7.1	)%		10.1	%		9.8	%		8.3	%		11.2	%		9.4	%		13.5	%

---

Georgia

 

CONSOLIDATED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		0.03			0.2			0.3			0.9			2.4			3.9			5.4			5.9			6.0			7.1			8.9			10.2
Gross margin		0.00			-0.01			0.03			0.24			0.8			1.6			2.6			2.6			2.9			3.6			4.7			5.1
Gross margin, %		n/a			n/a			10.0	%		26.7	%		33.3	%		41.0	%		48.1	%		44.1	%		48.3	%		50.7	%		52.8	%		50.0	%
OIBDA		-1.2			-1.9			-2.0			-2.3			-2.2			-2.1			-1.1			-1.2			-0.5			0.1			1.0			0.4
OIBDA, %		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			0.014			0.112			0.039
SG&A		1.2			1.9			2.1			2.6			3.0			3.7			3.7			3.8			3.4			3.5			3.8			4.7
including Sales & Marketing Expenses		0.2			0.3			0.4			0.6			0.6			0.6			0.8			0.9			0.6			0.7			0.8			1.1
including advertising		0.0			1.2			0.3			0.4			0.3			0.4			0.6			0.6			0.2			0.2			0.3			0.4
including General & Administrative Costs		1.0			1.6			1.7			2.0			2.4			3.1			2.9			2.9			2.8			2.8			3.0			3.6
SG&A, %		n/a			950.0	%		700.0	%		288.9	%		125.0	%		94.9	%		68.5	%		64.4	%		56.7	%		49.3	%		42.7	%		46.1	%
Net Income		-1.9			-2.0			-2.3			-1.4			0.1			-1.5			-5.3			-30.7			-3.6			-2.9			-4.1			-3.9
Capital Expenditures		16.6			9.4			4.8			28.9			7.0			12.2			8.9			7.1			1.6			2.1			2.5			3.3
MOBILE (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		0.03			0.2			0.3			0.9			2.4			3.9			5.4			5.9			6.0			7.1			8.9			10.2
including Mobile Interconnect		0.00			0.0			0.1			0.2			0.6			0.9			1.3			1.5			1.5			1.8			2.4			2.5
Mobile OIBDA		-1.2			-1.9			-2.0			-2.3			-2.2			-2.1			-1.1			-1.2			-0.5			0.1			1.0			0.4
Mobile OIBDA, %		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			1.4	%		11.2	%		3.9	%
Subscribers (‘000)		7.3			14.0			26.6			72.7			146.2			168.6			189.0			225.1			246.4			289.2			341.0			399.0
ARPU, US$		3.2			4.8			6.3			9.0			7.4			8.2			9.9			9.7			8.4			8.8			9.2			8.4
MOU, min		47.9			82.5			85.1			121.5			87.1			89.3			109.8			129.8			121.2			123.1			129.3			131.1
Churn 3 months active base (quarterly), %		n/a			n/a			n/a			17.6	%		1.4	%		16.8	%		13.8	%		11.7	%		7.8	%		10.8	%		10.7	%		15.7	%
FIXED (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenues		0			0			0			0			0			0			0			0			0			0			0			0
including business segment		0			0			0			0			0			0			0			0			0			0			0			0
including wholesale segment		0			0			0			0			0			0			0			0			0			0			0			0
including residential segment		0			0			0			0			0			0			0			0			0			0			0			0
Fixed OIBDA		0			0			0			0			0			0			0			0			0			0			0			0
Fixed OIBDA, %		0			0			0			0			0			0			0			0			0			0			0			0
Broadband subscribers (‘000)		0			0			0			0			0			0			0			0			0			0			0			0
Broadband services ARPU, blended, US$		0			0			0			0			0			0			0			0			0			0			0			0
Reconciliation of OIBDA total (in US$ millions, unless stated otherwise)		Q1 2007			Q2 2007			Q3 2007			Q4 2007			Q1 2008			Q2 2008			Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
OIBDA		(1.2	)		(1.9	)		(2.0	)		(2.3	)		(2.2	)		(2.1	)		(1.1	)		(1.2	)		(0.5	)		0.1			1.0			0.4
Depreciation		(0.1	)		(0.5	)		(0.8	)		(1.1	)		(1.5	)		(1.9	)		(2.1	)		(2.7	)		(2.9	)		(2.9	)		(2.8	)		(3.1	)
Amortization		(0.9	)		(1.2	)		(1.3	)		(1.3	)		(1.3	)		(2.0	)		(2.0	)		(1.8	)		(1.7	)		(1.7	)		(1.7	)		(1.6	)
Operating income		(2.2	)		(3.6	)		(4.1	)		(4.7	)		(5.0	)		(6.0	)		(5.2	)		(5.7	)		(5.1	)		(4.5	)		(3.5	)		(4.3	)
OIBDA margin total		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			1.4	%		11.2	%		0.0
Less: Depreciation as a percentage of net operating revenues		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			(40.9	)%		(31.4	)%		(0.3	)
Less: Amortization as a percentage of net operating revenues		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			(23.9	)%		(19.1	)%		(0.2	)
Operating income as a percentage of net operating revenues		n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			n/a			(63.4	)%		(39.3	)%		(0.4	)

---

SEA

 

CONSOLIDATED (in US$ millions, unless stated otherwise)		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenue		0		0		0		0		0		0		0.0			0.0			0.0			0.9			2.4			2.4
Gross margin		0		0		0		0		0		0		0.0			0.0			0.0			-1.0			-0.7			0.5
Gross margin, %		0		0		0		0		0		0		n/a			n/a			n/a			-111.1	%		-29.2	%		20.8	%
OIBDA		0		0		0		0		0		0		-0.2			-0.8			-1.6			-5.5			-7.5			-6.4
OIBDA, %		0		0		0		0		0		0		n/a			n/a			n/a			n/a			n/a			n/a
SG&A		0		0		0		0		0		0		0.2			0.8			1.6			4.5			6.8			7.0
including Sales & Marketing Expenses		0		0		0		0		0		0		0.0			0.0			0.0			1.7			2.5			2.0
including advertising		0		0		0		0		0		0		0.0			0.0			0.0			1.1			1.1			0.7
including General & Administrative Costs		0		0		0		0		0		0		0.2			0.8			1.6			2.8			4.3			5.0
SG&A, %		0		0		0		0		0		0		n/a			n/a			n/a			500.0	%		283.3	%		291.7	%
Net income (loss)		0		0		0		0		0		0		-0.1			1.0			1.3			-10.3			-16.4			-25.4
Capital Expenditures		0		0		0		0		0		0		0.4			7.4			12.9			23.6			8.2			22.8
MOBILE (in US$ millions, unless stated otherwise)		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenue		0		0		0		0		0		0		0			0			0			0.9			2.4			2.4
including Mobile Interconnect		0		0		0		0		0		0		0			0			0			0			0.2			0.3
Mobile OIBDA		0		0		0		0		0		0		-0.2			-0.8			-1.6			-5.5			-7.5			-6.4
Mobile OIBDA, %		0		0		0		0		0		0		n/a			n/a			n/a			n/a			n/a			n/a
Subscribers (‘000)		0		0		0		0		0		0		0			0			0			79	*		95	*		367
ARPU, US$		0		0		0		0		0		0		0			0			0			n/m			n/m			n/m
MOU, min		0		0		0		0		0		0		0			0			0			n/m			n/m			n/m
Churn 3 months active base (quarterly), %		0		0		0		0		0		0		0			0			0			n/m			n/m			n/m
Subscriber market share, %		0		0		0		0		0		0		0			0			0
FIXED (in US$ millions, unless stated otherwise)		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
Net operating revenue		0		0		0		0		0		0		0			0			0			0			0			0
including business segment		0		0		0		0		0		0		0			0			0			0			0			0
including wholesale segment		0		0		0		0		0		0		0			0			0			0			0			0
including residential segment		0		0		0		0		0		0		0			0			0			0			0			0
Fixed OIBDA		0		0		0		0		0		0		0			0			0			0			0			0
Fixed OIBDA, %		0		0		0		0		0		0		0			0			0			0			0			0
Broadband subscribers (‘000)		0		0		0		0		0		0		0			0			0			0			0			0
Broadband services ARPU, blended, US$		0		0		0		0		0		0		0			0			0			0			0			0
Reconciliation of OIBDA total (in US$ millions, unless stated otherwise)		Q1 2007		Q2 2007		Q3 2007		Q4 2007		Q1 2008		Q2 2008		Q3 2008			Q4 2008			Q1 2009			Q2 2009			Q3 2009			Q4 2009
OIBDA		0		0		0		0		0		0		(0.2	)		(0.8	)		(1.6	)		(5.5	)		(7.5	)		(6.5	)
Depreciation		0		0		0		0		0		0		—			—			—			(0.3	)		(1.4	)		(2.3	)
Amortization		—		—		—		—		0		0		—			—			—			(0.2	)		(0.5	)		(0.3	)
Operating income		0		0		0		0		0		0		(0.2	)		(0.8	)		(1.6	)		(6.0	)		(9.4	)		(9.1	)
OIBDA margin total		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a
Less: Depreciation as a percentage of net operating revenue		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a
Less: Amortization as a percentage of net operating revenue		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a
Less: Impairment loss		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a
Operating income as a percentage of net operating revenue		n/a		n/a		n/a		n/a		n/a		n/a		n/a			n/a			n/a			n/a			n/a			n/a

 

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