Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of November 2009

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: November 24, 2009

    
  By:  

/S/    ALEXANDER Y. TORBAKHOV        

  Name:   Alexander Y. Torbakhov
  Title:   General Director

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Moscow and New York (November 24, 2009) - 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 financial and operating results for the quarter ended September 30, 2009.

Third Quarter 2009 Highlights and Recent Developments

Operational

 

  •  

Mobile subscribers increased by 1.7 million versus 2Q09, reaching 65.4 million

 

  •  

Successful launch of operations in Vietnam under Beeline brand

 

  •  

Agreement signed to enter Laos mobile market

 

  •  

3G presence in all regions of Russia as of November 21, 2009

Financial

 

  •  

Net operating revenues reached 71.3 billion Russian rubles, an increase of 3.3% versus 2Q09

 

  •  

OIBDA reached a record 36.0 billion rubles, an increase of 2.9% versus 2Q09

 

  •  

Continued strong consolidated fixed and mobile OIBDA margin of 50.4%

 

  •  

Net income attributable to VimpelCom amounted to 13.5 billion rubles

Other

 

  •  

Interim dividend payment of 190.13 rubles per common share proposed by the Board of Directors

 

  •  

Major shareholders agreed to combine their stakes in VimpelCom and Kyivstar in a new company

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Commenting on the performance of the Company, Boris Nemsic, Chief Executive Officer of VimpelCom, said, “During the third quarter we continued to demonstrate growth in challenging market conditions and delivered a record 71.3 billion rubles in revenues and 36.0 billion rubles in OIBDA with a consolidated fixed and mobile OIBDA margin of 50.4%.

We are particularly pleased with the OIBDA performance which demonstrates our ability to increase revenues and control costs in the new economic environment.

The number of active mobile subscribers reached 65.4 million, which is 13% more than we had a year ago. We serve 1.9 million fixed and mobile broadband subscribers, which makes us one of the largest broadband providers in Russia and the CIS.

Stable operational cash flow strengthened our financial position. As of today, we have repaid more than $2 billion dollars of our debt and fully funded capital expenditures. We continue to optimize our debt portfolio with the non-ruble portion of our debt decreasing to 76% of our total debt, compared with 85% at the beginning of the year.

On October 5th, 2009, Altimo and Telenor agreed to combine their interests in VimpelCom and Kyivstar, paving the way for the creation of one of the largest telecom operators in the emerging markets. Management of VimpelCom welcomes this transaction and believes that the transaction, when completed, will bring benefits to our shareholders, employees and customers”.

 

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Key Consolidated Financial and Operating Results*

 

CONSOLIDATED OPERATIONS* (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

Net operating revenues

    71,338      68,933      3.5 %    69,035      3.3 % 

OIBDA

    35,980      33,636      7.0 %    34,958      2.9 % 

OIBDA margin, %

    50.4 %    48.8 %      50.6 %   

Operating income

    22,299      21,568      3.4 %    22,250      0.2 % 

Operating income margin, %

    31.3 %    31.3 %      32.2 %   

SG&A

    18,760      18,167      3.3 %    18,458      1.6 % 

including Sales & Marketing Expenses

    5,766      5,867      -1.7 %    5,414      6.5 % 

including General & Administrative Costs

    12,994      12,300      5.6 %    13,044      -0.4 % 

SG&A percentage

    26.3 %    26.4 %      26.7 %   

Net income attributable to VimpelCom

    13,513      6,513      107.5 %    22,599      -40.2 % 

Net income attributable to VimpelCom per common share, basic (RUR)

    266.83      128.68        446.43     

Net income attributable to VimpelCom per ADS equivalent, basic (RUR)

    13.34      6.43        22.32     

Capital expenditures

    3,842      16,799      -77.1 %    5,027      -23.6 % 

Mobile subscribers (‘000)

    65,358      57,758      13.2 %    63,676      2.6 % 

Broadband subscribers*) (‘000)

    1,930      785      145.9 %    1,739      11.0 % 

 

* See definitions in Attachment A. Y-o-y stands for 3Q09 vs. 3Q08 comparison while q-o-q stands for 3Q09 vs. 2Q09.

 

Net operating revenues 3Q ‘09* (RUR, millions)

    Russia    CIS    SEA    Eliminations    Total

Mobile business

    51,502    9,221    74    -138    60,659

Fixed business

    13,583    2,167    0    -608    15,142

Eliminations

    -3,874    -312    0    -277    -4,463

Total net operating revenue

    61,211    11,076    74    -1,023    71,338

 

* 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.

The quarterly net operating revenues increased by 3.5% year-on-year and 3.3% as compared with the previous quarter demonstrating the strength of our core business.

Continued focus on operational efficiency helped us to maintain a strong consolidated fixed and mobile OIBDA margin of 50.4%.

We continue to maintain solid operational cash flow, which provides a basis for further investment in the development of our business. We invested 3.8 billion rubles during the third quarter of 2009. Taking into consideration the further strengthening of the Russian ruble, we have recalculated our CAPEX guidance for 2009 and expect CAPEX to be in the range of 10%-12% of our 2009 annual revenue.

 

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During the third quarter we repaid $690 million of debt. Our net debt continued to decline from $6.3 billion at the end of the second quarter down to $5.5 billion at the end of the third quarter.

Our quarterly net income attributable to VimpelCom amounted to 13.5 billion rubles, including a modest 0.7 billion ruble net foreign exchange gain due to the strengthening of the ruble.

 

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Russia - Financial and Operating Results

 

RUSSIA (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

Net operating revenues

    61,211      58,816      4.1 %    59,136      3.5 % 

OIBDA

    30,951      29,457      5.1 %    30,279      2.2 % 

OIBDA margin, %

    50.6 %    50.1 %      51.2 %   

Operating income

    20,724      20,112      3.0 %    20,574      0.7 % 

Operating income margin, %

    33.9 %    34.2 %      34.8 %   

SG&A

    15,644      15,191      3.0 %    15,417      1.5 % 

including Sales & Marketing Expenses

    4,940      4,918      0.4 %    4,726      4.5 % 

including General & Administrative Costs

    10,704      10,273      4.2 %    10,691      0.1 % 

SG&A percentage

    25.6 %    25.8 %      26.1 %   

Net income attributable to VimpelCom

    13,754      6,274      119.2 %    21,835      -37.0 % 

Our quarterly net operating revenues in Russia amounted to 61.2 billion rubles, growing 3.5% quarter-on-quarter. The quarterly net operating revenues in Russia grew 4.1% compared to the exceptionally strong third quarter of 2008, when we reported high revenues from roaming and handset sales.

The total Russia fixed and mobile OIBDA increased 5.1% year-on-year and reached 30.9 billion rubles with a total fixed and mobile OIBDA margin of 50.6%.

In the mobile segment our revenues increased by 4.2% quarter-on-quarter. Slight upward trends in usage coupled with a seasonal increase from roaming led to an increase in ARPU of 2.8%.

Our fixed-line revenues increased by 4.4% quarter-on-quarter. A seasonal decline in the usage by business customers during the summer months was offset by increasing wholesale revenues, which grew by 13.3% quarter-on-quarter. The fixed-line OIBDA margin decreased quarter-on-quarter from 29.6% to 26.4%. As a result the quarterly fixed-line revenues were also impacted by the appreciation of the Russian ruble as part of our contracts in the business segment are denominated in US dollars and Euro.

In the third quarter of 2009 the total number of residential broadband subscribers in Russia, including FTTB and mobile broadband, reached 1.8 million, a 140% increase year-on-year and a 10% increase quarter-on-quarter.

 

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RUSSIA REVENUES (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

Net operating revenues

    61,211      58,816      4.1 %    59,136      3.5 % 

Mobile revenues

    51,502      49,401      4.3 %    49,410      4.2 % 

Fixed revenues

    13,583      10,789      25.9 %    13,007      4.4 % 

Eliminations

    -3,874      -1,374        -3,281     

RUSSIA OIBDA DEVELOPMENT*) (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

OIBDA Total

    30,951      29,457      5.1 %    30,279      2.2 % 

Mobile OIBDA

    27,360      26,772      2.2 %    26,427      3.5 % 

Fixed OIBDA

    3,591      2,685      33.7 %    3,852      -6.8 % 

Total OIBDA margin, %

    50.6 %    50.1 %      51.2 %   

Mobile OIBDA margin, %

    53.1 %    54.2 %      53.5 %   

Fixed OIBDA margin, %

    26.4 %    24.9 %      29.6 %   

RUSSIA OPERATING DEVELOPMENT

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

Mobile subscribers (‘000)**)

    51,028      45,093      13.2 %    49,971      2.1 % 

MOU, min

    213.6      228.5      -6.5 %    211.8      0.8 % 

ARPU mobile, (RUR)

    331.4      368.2      -10.0 %    322.5      2.8 % 

Broadband subscribers (‘000)

    1,833      764      139.9 %    1,659      10.5 % 

 

* Please find information on respective operating income amounts in the supplementary file FinancialOperatingQ32009.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.
** Starting with this quarterly report, we no longer provide information on subscriber market share. This is because different churn policies used by mobile service providers result in reported subscriber market share figures that could be misleading.

 

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CIS - Financial and Operating Results

 

CIS OPERATIONS (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

Net operating revenues

    11,076      10,663      3.9 %    10,668      3.8 % 

OIBDA

    5,322      4,232      25.8 %    4,908      8.4 % 

OIBDA margin, %

    48.0 %    39.7 %      46.0 %   

Operating income

    2,056      1,509      36.2 %    1,929      6.6 % 

Operating income margin, %

    18.6 %    14.2 %      18.1 %   

SG&A

    2,851      2,945      -3.2 %    2,844      0.2 % 

including Sales & Marketing Expenses

    748      949      -21.2 %    633      18.2 % 

including General & Administrative Costs

    2,103      1,996      5.4 %    2,211      -4.9 % 

SG&A percentage

    25.7 %    27.6 %      26.7 %   

Net income attributable to VimpelCom

    86      323      -73.4 %    841      -89.8 % 

Mobile subscribers (‘000)

    14,235      12,665      12.4 %    13,626      4.5 % 

Broadband subscribers (‘000)

    97      21      361.9 %    80      21.3 % 

The total quarterly revenues from the CIS markets increased year-on-year by 3.9% to 11.1 billion rubles.

Our continued focus on cost control increased consolidated OIBDA margin for the CIS segment by 2 percentage points to a record high of 48.0%, a remarkable achievement in challenging market conditions.

In the third quarter of 2009, we observed a good increase in subscriber numbers across all markets where we operate. Our subscriber base in the CIS reached 14.2 million active users, 12.4% more than a year ago.

Net income attributable to VimpelCom in the CIS segment reached 86 million rubles in the third quarter, with a modest impact from the foreign exchange gain as compared with the second quarter of 2009.

 

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CIS Revenues Development

 

KAZAKHSTAN (RUR, millions)

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Net operating revenues

    5,387    4,815    11.9 %    5,061    6.4 % 

Mobile

    5,311    4,750    11.8 %    4,988    6.5 % 

Fixed

    211    146    44.5 %    190    11.1 % 

Elimination

    -135    -81      -117   

Net operating revenues (KZT, millions)

    25,928    23,830    8.8 %    23,679    9.5 % 

UKRAINE (RUR, millions)

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Net operating revenues

    1,773    2,283    -22.3 %    1,645    7.8 % 

Mobile

    1,066    1,653    -35.5 %    956    11.5 % 

Fixed

    879    787    11.7 %    800    9.9 % 

Elimination

    -172    -157      -111   

Net operating revenues (UAH, millions)

    442    456    -3.1 %    390    13.3 % 

ARMENIA (RUR, millions)

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Net operating revenues

    1,611    1,667    -3.4 %    1,584    1.7 % 

Mobile

    637    764    -16.6 %    634    0.5 % 

Fixed

    974    903    7.9 %    950    2.5 % 

Elimination

    0    0      0   

Net operating revenues (AMD, millions)

    19,167    20,786    -7.8 %    18,253    5.0 % 

UZBEKISTAN (RUR, millions)

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Net operating revenues

    1,568    1,416    10.7 %    1,693    -7.4 % 

Mobile

    1,467    1,345    9.1 %    1,594    -8.0 % 

Fixed

    103    71    45.1 %    100    3.0 % 

Elimination

    -2    0      -1   

Net operating revenues (US$, millions)

    50    58    -13.8 %    53    -5.7 % 

TAJIKISTAN (RUR, millions)

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Mobile net operating revenues

    468    358    30.7 %    461    1.5 % 

Mobile net operating revenues (US$, millions)

    14.9    14.8    0.7 %    13.7    8.8 % 

GEORGIA (RUR, millions)

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Mobile net operating revenues

    279    131    113.0 %    229    21.8 % 

Mobile net operating revenues (GEL, millions)

    14.9    7.6    96.1 %    11.8    26.3 % 

CIS (RUR, millions)

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Net operating revenues

    11,076    10,663    3.9 %    10,668    3.8 % 

Mobile

    9,221    8,999    2.5 %    8,859    4.1 % 

Fixed

    2,167    1,907    13.6 %    2,040    6.2 % 

Elimination

    -312    -243      -231   

 

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CIS OIBDA Development*

 

KAZAKHSTAN (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

OIBDA total

    3,187      2,573      23.9 %    2,745      16.1 % 

Mobile

    3,064      2,495      22.8 %    2,643      15.9 % 

Fixed

    123      78      57.7 %    102      20.6 % 

OIBDA margin, %

    59.2 %    53.4 %      54.2 %   

UKRAINE (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

OIBDA total

    380      -40      n/a      322      18.0 % 

Mobile

    140      -215      n/a      82      70.7 % 

Fixed

    240      175      37.1 %    240      0.0 % 

OIBDA margin, %

    21.4 %    n/a        19.6 %   

ARMENIA (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

OIBDA total

    825      813      1.5 %    799      3.3 % 

Mobile

    306      337      -9.2 %    298      2.7 % 

Fixed

    519      476      9.0 %    501      3.6 % 

OIBDA margin, %

    51.2 %    48.8 %      50.4 %   

UZBEKISTAN (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

OIBDA total

    738      798      -7.5 %    865      -14.7 % 

Mobile

    696      774      -10.1 %    825      -15.6 % 

Fixed

    42      24      75.0 %    40      5.0 % 

OIBDA margin, %

    47.1 %    56.4 %      51.1 %   

TAJIKISTAN (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

Mobile OIBDA

    162      115      40.9 %    173      -6.4 % 

Mobile OIBDA margin, %

    34.6 %    32.1 %      37.5 %   

GEORGIA (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

Mobile OIBDA

    30      -27      n/a      4      650.0 % 

Mobile OIBDA margin, %

    10.8 %    n/a        1.7 %   

CIS (RUR, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

OIBDA total

    5,322      4,232      25.8 %    4,908      8.4 % 

Mobile

    4,398      3,479      26.4 %    4,025      9.3 % 

Fixed

    924      753      22.7 %    883      4.6 % 

OIBDA margin, %

    48.0 %    39.7 %      46.0 %   

 

* Please find information on respective operating income amounts in the supplementary file FinancialOperatingQ32009.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

 

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CIS Operating Highlights

 

KAZAKHSTAN

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Mobile subscribers*) (‘000)

    6,835    5,614    21.7 %    6,635    3.0 % 

MOU, min

    98.1    108.1    -9.3 %    90.7    8.2 % 

ARPU mobile, (RUR)

    257.9    294.1    -12.3 %    253.6    1.7 % 

ARPU mobile, (KZT)

    1,240.7    1,455.4    -14.8 %    1,187.1    4.5 % 

Broadband subscribers (‘000)

    0.3    n/a      0.3    0.0 % 

UKRAINE

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Mobile subscribers*) (‘000)

    2,199    2,403    -8.5 %    1,934    13.7 % 

MOU, min

    203.7    261.5    -22.1 %    217.8    -6.5 % 

ARPU mobile, (RUR)

    168.3    234.9    -28.4 %    166.8    0.9 % 

ARPU mobile, (UAH)

    42.0    47.4    -11.4 %    39.7    5.8 % 

Broadband subscribers (‘000)

    70    16    337.5 %    53    32.1 % 

ARMENIA

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Mobile subscribers*) (‘000)

    502    784    -36.0 %    486    3.3 % 

MOU, min

    269.0    139.9    92.3 %    238.4    12.8 % 

ARPU mobile, (RUR)

    429.7    336.9    27.5 %    436.9    -1.6 % 

ARPU mobile, (AMD)

    5,117.2    4,200.1    21.8 %    5,034.7    1.6 % 

Broadband subscribers (‘000)

    18.1    5.4    235.2 %    19.2    -5.7 % 

UZBEKISTAN

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Mobile subscribers*) (‘000)

    3,652    3,148    16.0 %    3,605    1.3 % 

MOU, min

    409.3    298.5    37.1 %    225.6    81.4 % 

ARPU mobile, (RUR)

    140.7    157.5    -10.7 %    150.6    -6.6 % 

ARPU mobile, (US$)

    4.5    6.5    -30.8 %    4.7    -4.3 % 

Broadband subscribers (‘000)

    8.3    n/a      7.6    9.2 % 

TAJIKISTAN

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Mobile subscribers*) (‘000)

    706    527    34.0 %    677    4.3 % 

MOU, min

    173.3    255.9    -32.3 %    173.1    0.1 % 

ARPU mobile, (RUR)

    224.1    250.7    -10.6 %    221.6    1.1 % 

ARPU mobile, (US$)

    7.2    10.4    -30.8 %    6.9    4.3 % 

GEORGIA

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Mobile subscribers*) (‘000)

    341    189    80.4 %    289    18.0 % 

MOU, min

    129.3    109.8    17.8 %    123.1    5.0 % 

ARPU mobile, (RUR)

    288.5    238.9    20.8 %    283.6    1.7 % 

ARPU mobile, (GEL)

    15.4    14.0    10.0 %    14.5    6.2 % 

 

* Starting with this quarterly report, we no longer provide information on subscriber market share. This is because different churn policies used by mobile service providers result in reported subscriber market share figures that could be misleading.

 

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South-East Asia

Cambodian operations have been actively developing since our launch in May 2009. As of the third quarter of 2009, our services are available in the 17 largest provinces reaching 42% of the country’s population. By the end of 2009, we plan to expand coverage to reach more than two thirds of the country’s population.

According to the latest independent research Beeline brand awareness was ranked third among 9 mobile operators in Cambodia with brand awareness at 62% on a country-wide level and 98% in the capital.

Two months after the network launch in Vietnam, our networks cover the capital and the two largest cities as well as the 8 most populated provinces. By the end of January 2010, we plan to cover more than 40 provinces of Vietnam with a population of about 41 million.

Our distribution network in Vietnam was extended to more than 10,000 points of sales including traditional retail outlets and new channels like Branded Trade Counters. According to the latest independent research, in the three largest cities of Vietnam the Beeline brand has reached 80% awareness level among the 15-65 year-old audience.

 

SEA*) (RUR, millions)

    3Q ‘09    3Q ‘08    y-o-y    2Q ‘09    q-o-q  

Net operating revenues

    74    0    n/a    28    164.3 % 

OIBDA total

    -234    -4    n/a    -174    n/a   

 

*)

See definitions in Attachment A.

* * *

For more information on financial and operating data for specific countries, please refer to the supplementary file FinancialOperatingQ32009.xls on our website at http://www.vimpelcom.com/news/qrep.wbp.

The Company’s management will discuss its third quarter 2009 results during a conference call and slide presentation on November 24, 2009 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 December 1, 2009. 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 relate to the proposed combination with Kyivstar and its benefits, the Company’s 2009 capital expenditures 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 unce 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 Annual Report on Form 20-F 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: The proposed exchange offer described in this communication has not yet commenced, and the description of the proposed exchange offer contained in this communication is not an offer to buy or the solicitation of an offer to sell securities.

If the proposed exchange offer is commenced, the Company expects that VimpelCom Ltd. will file with the SEC a registration statement and other related materials with respect to the proposed exchange offer, and the Company will file with the SEC a solicitation/recommendation statement on Schedule 14D-9 with respect to the proposed exchange offer. Investors and shareholders are urged to read the registration statement and other related materials, the solicitation/recommendation statement on Schedule 14D-9 and any amendments, exhibits or other applicable documents regarding the proposed exchange offer if and when they become available because they will contain important information. Those materials will be made available to the Company’s shareholders at no expense to them. In addition, all of those materials (and all other exchange offer documents filed with the SEC) will be made available at no charge on the SEC’s website at www.sec.gov.

 

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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 those subscribers in the registered subscriber base who were a party to a revenue generating activity in the past three months and remain in the base at the end of the reported period, except for the subscriber base in Cambodia which is calculated on a one month basis. Such activities include all incoming and outgoing calls, subscriber fee accruals, debits related to service, outgoing SMS, MMS, data transmission and receipt sessions, but do not include incoming SMS and MMS sent by our Company or abandoned calls. 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), a non-U.S. GAAP financial measure, 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. The Company believes that ARPU provides useful information to investors because it is an indicator of the performance of the Company’s business operations and assists management in budgeting. The Company also believes that ARPU provides management with useful information concerning usage and acceptance of the Company’s services. ARPU should not be viewed in isolation or an alternative to other figures reported under U.S. GAAP.

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.

OIBDA is a non-U.S. GAAP financial measure. OIBDA, previously referred to as EBITDA by the Company, is defined as operating income before depreciation, amortization and impairment loss. The Company believes that OIBDA provides useful information to

 

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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 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 telecommunications industry. 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. OIBDA does not include our need to replace our capital equipment over time. Reconciliation of OIBDA to operating income, the most directly comparable U.S. GAAP financial measure, is presented below in the reconciliation tables section.

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

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 calculated as the sum of short-term debt and long-term debt minus cash and cash equivalents.

 

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Attachment B: VimpelCom financial statements

Open Joint Stock Company “Vimpel-Communications”

Unaudited Condensed Consolidated Statements of Income

 

    Three months ended
September 30,		     Nine months ended
September 30,		  
    2009     2008     2009     2008  
    (In millions of Russian rubles, except share (ADS)
amounts)		  

Operating revenues:

        

Service revenues

   70,359      67,913      204,047      180,516   

Sales of equipment and accessories

   863      949      2,885      1,054   

Other revenues

   173      123      475      317   
                       

Total operating revenues

   71,395      68,985      207,407      181,887   

Revenue based tax

   (57 )    (52 )    (191 )    (132 ) 
                       

Net operating revenues

   71,338      68,933      207,216      181,755   

Operating expenses:

        

Service costs

   15,306      15,916      44,460      40,462   

Cost of equipment and accessories

   886      921      2,841      1,016   

Selling, general and administrative expenses

   18,760      18,167      55,424      49,265   

Depreciation

   11,452      9,687      32,355      27,445   

Amortization

   2,229      2,381      6,934      6,399   

Provision for doubtful accounts

   406      293      1,387      1,172   
                       

Total operating expenses

   49,039      47,365      143,401      125,759   
                       

Operating income

   22,299      21,568      63,815      55,996   

Other income and expenses:

        

Interest income

   242      436      1,342      1,376   

Net foreign exchange gain/(loss)

   693      (8,269 )    (12,304 )    (3,173 ) 

Interest expense

   (4,914 )    (3,439 )    (14,074 )    (8,220 ) 

Equity in net gain/(loss) of associates

   152      65      (862 )    65   

Other (expenses)/income, net

   (105 )    (181 )    (290 )    (438 ) 
                       

Total other income and expenses

   (3,932 )    (11,388 )    (26,188 )    (10,390 ) 
                       

Income before income taxes and noncontrolling interest

   18,367      10,180      37,627      45,606   

Income tax expense

   4,809      3,359      10,127      12,326   
                       

Net income

   13,558      6,821      27,500      33,280   

Net income/(loss) attributable to the noncontrolling interest

   45      308      (98 )    1,071   
                       

Net income attributable to VimpelCom

   13,513      6,513      27,598      32,209   
                       

Basic EPS:

        

Net income attributable to VimpelCom per common share

   266.83      128.68      545.11      634.94   
                       

Weighted average common shares outstanding (thousand)

   50,643      50,615      50,628      50,728   

Net income attributable to VimpelCom per ADS equivalent

   13.34      6.43      27.26      31.75   
                       

Diluted EPS:

        

Net income attributable to VimpelCom per common share

   261.01      128.68      525.36      634.94   
                       

Weighted average diluted shares (thousand)

   51,771      50,615      52,532      50,728   

Net income attributable to VimpelCom per ADS equivalent

   13.05      6.43      26.27      31.75   
                       

 

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Open Joint Stock Company “Vimpel-Communications”

Unaudited Condensed Consolidated Balance Sheets

 

     September 30,
2009		     December 31,
2008		  
     (In millions of Russian rubles,
except share amounts)		  

Assets

     

Current assets:

     

Cash and cash equivalents

    75,902      26,873   

Trade accounts receivable, net of allowance for doubtful accounts

    13,341      13,974   

Inventory

    2,461      4,191   

Deferred income taxes

    2,104      2,432   

Input value added tax

    3,994      5,349   

Due from related parties

    8,509      4,942   

Other current assets

    5,924      12,941   
            

Total current assets

    112,235      70,702   

Property and equipment, net

    168,407      188,778   

Telecommunications licenses, net

    17,862      22,470   

Goodwill

    98,930      102,148   

Other intangible assets, net

    21,996      25,935   

Software, net

    12,584      16,134   

Investments in associates

    13,801      14,501   

Other assets

    22,707      21,314   
            

Total assets

    468,522      461,982   
            

Liabilities and equity

     

Current liabilities:

     

Accounts payable

    15,198      26,409   

Due to employees

    3,343      3,108   

Due to related parties

    502      142   

Accrued liabilities

    11,646      8,484   

Taxes payable

    10,476      4,471   

Customer advances, net of VAT

    9,302      12,492   

Customer deposits

    824      868   

Short-term debt

    74,516      56,093   
            

Total current liabilities

    125,807      112,067   

Deferred income taxes

    16,453      18,934   

Long-term debt

    168,293      191,963   

Other non-current liabilities

    5,266      3,608   

Commitments, contingencies and uncertainties

    -      -   

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); 50,683,660 shares outstanding (December 31, 2008: 50,617,408)

    3      3   

Additional paid-in capital

    42,688      42,624   

Retained earnings

    115,194      87,599   

Accumulated other comprehensive (loss)/income

    (5,105 )    3,992   

Treasury stock, at cost, 597,362 shares of common stock (December 31, 2008: 663,614)

    (5,692 )    (5,983 ) 
            

Total VimpelCom shareholders’ equity

    147,088      128,235   

Noncontrolling interest

    5,615      7,175   
            

Total equity

    152,703      135,410   
            

Total liabilities and equity

    468,522      461,982   
            

 

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Open Joint Stock Company “Vimpel-Communications”

Unaudited Condensed Consolidated Statements of Cash Flows

 

     Nine months ended
September 30,		  
     2009     2008  
     (In millions of Russian rubles)  

Operating activities

     

Net cash provided by operating activities

    88,998      62,117   

Investing activities

     

Purchases of property and equipment

    (15,699 )    (33,206 ) 

Purchases of intangible assets

    (435 )    (1,747 ) 

Purchases of software

    (4,180 )    (5,093 ) 

Acquisition of subsidiaries, net of cash acquired

    -      (100,348 ) 

Late payment for investment in associate

    (389 )    -   

Exercise of escrow cash deposit

    -      4,856   

Loan granted

    -      (8,491 ) 

Short-term deposits

    -      (2,368 ) 

Purchases of other assets, net

    (958 )    (1,578 ) 
            

Net cash used in investing activities

    (21,661 )    (147,975 ) 

Financing activities

     

Proceeds from bank and other loans

    38,920      130,718   

Proceeds from sale of treasury stock

    -      608   

Repayments of bank and other loans

    (54,817 )    (10,227 ) 

Payments of fees in respect of debt issues

    (1,671 )    (1,322 ) 

Net proceeds from employee stock options

    171      -   

Purchase of noncontrolling interest in consolidated subsidiaries

    (14 )    (23,462 ) 

Payment of dividends to noncontrolling party

    (23 )    (14,240 ) 

Purchase of treasury stock

    -      (2,751 ) 
            

Net cash (used in)/provided by financing activities

    (17,434 )    79,324   

Effect of exchange rate changes on cash and cash equivalents

    (875 )    259   
            

Net increase/(decrease) in cash and cash equivalents

    49,029      (6,275 ) 

Cash and cash equivalents at beginning of period

    26,873      24,637   
            

Cash and cash equivalents at end of period

    75,902      18,362   
            

Supplemental cash flow information

     

Cash paid during the period:

     

Income tax

    8,917      12,603   

Interest

    9,335      4,905   

Non-cash activities:

     

Equipment acquired under financing agreements

    6      1,448   

Accounts payable for equipment and other long-lived assets

    3,856      7,495   

Acquisitions :

     

Fair value of assets acquired

    -      64,159   

Fair value of noncontrolling interest acquired

    -      4,968   

Difference between the amount paid and the fair value of net assets acquired

    -      85,062   

Consideration for the acquisition of subsidiaries

    -      (129,430 ) 
            

Change in fair value of liabilities assumed

    -      24,759   
            

 

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Attachment C: Reconciliation Tables (Unaudited)

Reconciliation of Consolidated OIBDA

(In millions of Russian rubles)

 

OIBDA Consolidated Total

    3Q ‘09     3Q ‘08     2Q ‘09  

OIBDA

    35,980      33,636      34,958   

Depreciation

    (11,452 )    (9,687 )    (10,451 ) 

Amortization

    (2,229 )    (2,381 )    (2,257 ) 

Operating income

    22,299      21,568      22,250   

Reconciliation of OIBDA Margin

 

OIBDA Margin Consolidated Total

    3Q ‘09     3Q ‘08     2Q ‘09  

OIBDA margin

    50.4 %    48.8 %    50.6 % 

Less: Depreciation as a percentage of net operating revenues

    (16.0 )%    (14.0 )%    (15.1 )% 

Less: Amortization as a percentage of net operating revenues

    (3.1 )%    (3.5 )%    (3.3 )% 

Operating income as a percentage of net operating revenues

    31.3 %    31.3 %    32.2 % 

 

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Attachment D: Capex Development

 

CAPEX (RUR, millions)

    3Q ‘09    3Q ‘08    y-o-y     2Q ‘09    q-o-q  

Total capex

    3,842    16,799    -77.1 %    5,027    -23.6 % 

Russia

    2,827    12,224    -76.9 %    3,440    -17.8 % 

CIS

    756    4,527    -83.3 %    817    -7.5 % 

Kazakhstan

    310    1,868    -83.4 %    376    -17.6 % 

Ukraine

    95    1,137    -91.6 %    95    0.0 % 

Armenia

    48    462    -89.6 %    12    300.0 % 

Uzbekistan

    207    688    -69.9 %    241    -14.1 % 

Tajikistan

    16    156    -89.7 %    24    -33.3 % 

Georgia

    80    216    -63.0 %    69    15.9 % 

SEA

    258    9    2767 %    761    -66.1 % 

 

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Attachment E: Key Financial Results in US Dollars (Convenience Translation)

 

CONSOLIDATED OPERATIONS (US$, millions)

    3Q ‘09     3Q ‘08     y-o-y     2Q ‘09     q-o-q  

Net operating revenues

    2,277      2,843      -19.9 %    2,143      6.3 % 

OIBDA

    1,149      1,388      -17.2 %    1,085      5.9 % 

OIBDA margin, %

    50.5 %    48.8 %      50.6 %   

Operating income

    712      890      -20.0 %    691      3.0 % 

Operating income margin, %

    31.3 %    31.3 %      32.2 %   

SG&A

    599      749      -20.0 %    573      4.5 % 

including Sales & Marketing Expenses

    184      242      -24.0 %    168      9.5 % 

including General & Administrative Costs

    415      507      -18.1 %    405      2.5 % 

SG&A percentage

    26.3 %    26.3 %      26.7 %   

Net income attributable to VimpelCom

    431      269      60.2 %    702      -38.6 % 

Net income attributable to VimpelCom per common share, basic (US$)

    8.52      5.31        13.86     

Net income attributable to VimpelCom per ADS equivalent, basic (US$)

    0.43      0.27        0.69     

Capital expenditures

    123      692.9      -82.2 %    156.0      -21.2 % 

 

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Attachment F: Average Rates of Functional Currencies to Ruble*

 

Functional Currency/ 1 RUR

    1Q ‘08    2Q ‘08    3Q ‘08    4Q ‘08    1Q ‘09    2Q ‘09    3Q ‘09

Kazakhstan

    KZT    4.9690    5.1038    4.9540    4.4077    4.0948    4.6771    4.8200

Ukraine

    UAH    0.2081    0.2101    0.2003    0.2274    0.2281    0.2376    0.2496

Tajikistan

    USD    0.0412    0.0423    0.0412    0.0367    0.0295    0.0311    0.0319

Uzbekistan

    USD    0.0412    0.0423    0.0412    0.0367    0.0295    0.0311    0.0319

Armenia

    AMD    12.6926    13.0012    12.4664    11.2309    9.6090    11.5227    11.9095

Georgia

    GEL    0.0641    0.0612    0.0582    0.0568    0.0495    0.0515    0.0535

Cambodia

    USD                   0.0311    0.0319

 

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

 

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VimpelCom
3Q09 Financial and Operating Results

2009
2
©
Beeline 2009
Disclaimer
This presentation contains "forward-looking statements", as the phrase is defined in Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate, in part, to the proposed
combination
with
Kyivstar
and
its
benefits,
the
Company's
strategy,
development
plans
and
anticipated
performance.
The forward-looking statements are based on management's best assessment of the Company's strategic and
financial position, and future market conditions and trends. These discussions involve risks and uncertainties. The
actual outcome may differ materially from these statements as a result of continued volatility in the economies in the
markets in which the Company operates, unforeseen developments from competition, governmental regulation of the
telecommunications industries and general political uncertainties in the markets in which the Company operates
and/or litigation with third parties. The actual outcome may also differ materially if the Company is unable to obtain
all necessary corporate approvals relating to its business, if the Company is unable to successfully integrate newly-
acquired businesses, including Golden Telecom, and other factors.  There can be no assurance that these risks and
uncertainties will not have a material adverse effect on the Company, that the Company will be able to grow or that it
will be successful in executing its strategy and development plans. Certain factors that could cause actual results to
differ materially from those discussed in any forward-looking statements include the risks described in the Company's
Annual Report on Form 20-F 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.
The Company disclaims any obligation to update developments of these risk factors or to announce publicly any
revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future
events or developments.
IMPORTANT NOTICE: The proposed exchange offer described in this communication has not yet commenced, and the
description of the proposed exchange offer contained in this communication is not an offer to buy or the solicitation of
an offer to sell securities.
If
the
proposed
exchange
offer
is
commenced,
the
Company
expects
that
VimpelCom
Ltd.
will
file
with
the
SEC
a
registration statement and other related materials with respect to the proposed exchange offer, and the Company will
file with the SEC a solicitation/recommendation statement on Schedule 14D-9 with respect to the proposed exchange
offer.  Investors and shareholders are urged to read the registration statement and other related materials, the
solicitation/recommendation statement on Schedule 14D-9 and any amendments, exhibits or other applicable
documents
regarding
the
proposed
exchange
offer
if
and
when
they
become
available
because
they
will
contain
important information.  Those materials will be made available to the Company’s shareholders at no expense to them.
In addition, all of those materials (and all other exchange offer documents filed with the SEC) will be made available
at no charge on the SEC’s
website at www.sec.gov.

2009
3
©
Beeline 2009
Participants
Presentation
Q&A Session
will be joined by:
Dmitry Pleskonos,
Executive VP, Head of B2C Russia
Kent Mc Neley
VP, Chief Marketing Officer Russia
Andrey Patoka,
VP, Head of B2B Russia
Alexander Torbakhov, General Director
Boris Nemsic, Chief Executive Officer
Elena Shmatova, Chief Financial Officer

2009
4
©
Beeline 2009
3Q09 in Brief
•
Number of mobile subscribers increased to 65.4 million
•
Ruble revenue of 71.3 billion with growth rates of 3.5% year-on-
year and 3.3% quarter-on-quarter
•
Consolidated fixed and mobile OIBDA of 36.0 billion rubles yielding
a 50.4% margin in line with the strong second quarter of 2009
•
Substantial progress in Cambodia and Vietnam; agreement to
enter
Laos
through
acquisition
of
Millicom
Lao
•
Telenor
and Altimo
proposed to combine VimpelCom and Kyivstar
to create a leading player in emerging telecom markets

2009
5
©
Beeline 2009
Group: Quarterly Financial Dynamics
Revenue
*
, RUR bn
Net Income (Loss)
**
, RUR bn
OIBDA, RUR bn
OIBDA Margin, %
*  Here and thereafter refers to net operating revenues.
** Net Income attributable to VimpelCom
+3.5%
71.3
69.0
66.8
69.7
68.9
61.7
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
+107.5%
13.5
22.6
-8.5
-22.2
6.5
11.1
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
+6.7%
36.0
35.0
32.2
30.6
33.6
28.9
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
50.4%
50.6%
48.1%
44.0%
48.8%
46.8%
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09

2009
6
©
Beeline 2009
Group: Financial Position
Key Ratios and Indicators*
Liquidity position, $ mln
* See slide 21 for applicable exchange rates
** LTM OIBDA constitutes the sum of the lines: LTM Operating Income and LTM
Depreciation, Amortization and Impairment Loss. LTM stands for “last twelve
months”
to reporting date.
4,282
4,654
4,860
4,683
4,545
4,306
2,157
2,511
2,571
2,328
1,250
1,820
494
909
851
1,060
2,331
1,465
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
OIBDA LTM
Capex
LTM
Free Cash Flow LTM
Cash
and
Cash
Equivalents
75,902
51,605
32,861
26,873
Total Assets
468,522
460,879
461,639
461,982
Total Debt
242,809
249,525
261,759
248,056
-Short-term
74,516
70,157
81,234
56,093
-Long-term
168,293
179,368
180,525
191,963
Equity
152,703
141,997
124,004
135,410
Net Debt
166,907
197,920
228,898
221,183
Sept 30,
2009
Jun 30,
2009
Mar 31,
2009
Dec 31,
2008
LTM  OIBDA
4,306
4,545
4,683
4,860
-
LTM Depreciation, amortization and
impairment loss
2,128
2,189
2,280
2,324
-
LTM Operating Income
2,178
2,356
2,403
2,536
LTM Interest
588
572
553
496
Debt/Equity
1.6
1.8
2.1
1.8
Debt/OIBDA
LTM
1.9
1.8
1.6
1.7
OIBDA/Interest
7.3
7.9
8.5
9.8
Debt/Assets
0.52
0.54
0.57
0.54
Total Debt
8,069
7,974
7,696
8,443
Net Debt
5,547
6,325
6,730
7,528
( in RUR
mln)
(in US$ mln)
Sept 30,
2009
June 30,
2009
Mar 31,
2009
Dec 31,
2008

2009
7
©
Beeline 2009
Group:
Debt
Profile
as
of
September
30,
2009
*
Debt Maturity Schedule, USD mln
1 060
1 963
14
724
1 934
2 178
600
1 000
526
9
1Q09
2Q09
3Q09
4Q09
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Debt composition by currency 
2 437
456
690
506
765
75%
76%
73%
66%
10%
10%
10%
10%
15%
14%
17%
24%
FY2008
1Q09
2Q09
3Q09
USD
EUR
RUR
**
•
RUR 10bln domestic bonds issued in
July 2009
•
RUR 10bln Sberbank
loan signed and
drawn down in August 2009
•
Buy back of $115mln of Eurobonds
2011 and $199mln of Eurobonds
2013 completed in October 2009.
Major recent developments:
*  1Q09-3Q09  figures  at actual rate. All other  figures at the 
       exchange rate as of September 30, 2009 
** $506M paid as of November 24, 2009 including repurchase of 
       $115M of Eurobonds 2011 and $199M of Eurobonds 2013.

2009
8
©
Beeline 2009
Russia: Consolidated Operations
CAPEX, RUR bn
Revenue*, RUR bn
OIBDA (RUR bn) and OIBDA Margin
CAPEX / Revenue LTM
58.8
58.8
56.3
59.1
61.2
52.9
44.0
49.4
49.0
45.7
49.4
10.8
51.5
13.6
12.0
9.8
13.0
13.3
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
29.5
30.3
31.0
25.0
25.8
27.2
22.9
26.8
22.9
26.4
23.2
27.4
47.3%
50.1%
44.0%
48.4%
50.6%
51.2%
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
75.0%
80.0%
Mobile
Fixed
OIBDA Margin
18%
20%
21%
19%
16%
11%
14%
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
**
6.7
12.2
2.8
17.5
10.0
3.4
3.1
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
**
* Total revenue adjusted for eliminations between fixed and mobile 
       segments
** Equivalent of $213 mln contracts signed

2009
9
©
Beeline 2009
Russia: Mobile Highlights
Mobile ARPU & MOU
Revenue, RUR bn
OIBDA (RUR bn) & OIBDA Margin
Subscribers, mln
+13.2%
42.5
45.1
47.7
50.0
51.0
49.4
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
348
368
307
323
341
331
212
203
228
229
220
214
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
0
150
300
ARPU (RUR)
MOU (min)
+4.3%
44.0
49.4
49.0
45.7
49.4
51.5
0
10
20
30
40
50
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
27.4
26.4
23.2
22.9
26.8
22.9
52.0%
54.2%
46.8%
50.9%
53.5%
53.1%
0
10
20
30
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
OIBDA
OIBDA Margin

2009
10
©
Beeline 2009
Russia: Fixed-line Segment
Revenue, RUR bn
Business Segment, RUR bn
Wholesale Segment, RUR bn
Residential Segment, RUR bn
GT revenue
VIP revenue
+25.9%
9.8
10.8
12.0
13.3
13.0
13.6
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
4.9
5.2
5.5
5.8
5.3
5.0
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
3.8
4.5
5.2
6.1
6.3
7.2
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
1.1
1.1
1.3
1.4
1.4
1.4
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09

2009
11
©
Beeline 2009
Russia: Residential Broadband Development
FTTB Households Passed (mln)
& Take-up Rate
Fixed and Mobile Broadband
Revenue, RUR mln
Broadband Subscribers, ‘000
Broadband ARPU, RUR
Fixed Residential BB
Mobile Broadband through USB modems
1,659
1,833
1,498
1,182
764
604
673
770
848
896
937
91
412
650
763
896
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
273
310
298
252
251
404
400
376
396
421
392
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
7.9
7.5
7.2
5.9
5.5
7.9
9.6%
8.8%
9.9%
10.5%
9.2%
8.6%
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
4%
6%
8%
10%
12%
14%
16%
18%
20%
22%
+130%
1,731
1,571
1,507
1,091
751
680
723
860
1,031
28
231
477
535
626
1,036
1,105
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09

2009
12
©
Beeline 2009
Kazakhstan: Operating & Financial Highlights
Revenue (RUR bn) & OIBDA Margin
Capex
/ Revenue LTM
Mobile Subscribers, mln
Mobile ARPU & MOU
+21.7%
6.4
6.3
6.8
5.6
5.1
6.6
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
258
290
295
269
254
294
110
108
101
81
91
98
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
20.0
40.0
60.0
80.0
100.0
120.0
140.0
ARPU (RUR)
MOU (min)
5.4
5.1
5.2
5.4
4.8
4.4
52.0%
53.4%
49.6%
51.2%
54.2%
59.2%
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
55.0%
60.0%
65.0%
70.0%
Revenue
OIBDA Margin
34%
38%
34%
28%
23%
14%
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09

2009
13
©
Beeline 2009
Ukraine: Operating & Financial Highlights
Revenue* (RUR bn) & OIBDA Margin
Capex
/ Revenue LTM
Mobile Subscribers, mln
Mobile ARPU & MOU
-8.5%
2.1
2.1
2.4
1.9
2.2
1.9
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
168
178
235
190
151
167
204
218
213
230
262
231
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
20
70
120
170
220
270
ARPU (RUR)
MOU (min)
86%
75%
67%
55%
39%
27%
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2.3
1.7
1.9
1.8
1.6
1.7
0.7
0.8
0.7
0.9
1.1
1.3
1.0
1.7
1.1
0.9
0.8
0.8
21.4%
19.6%
13.4%
16.4%
-1.8%
13.1%
-2
-1
0
1
2
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
-80.0%
-30.0%
20.0%
70.0%
Mobile
Fixed
OIBDA Margin
* Total revenue adjusted for eliminations between fixed 
   and mobile segments in Ukraine

2009
14
©
Beeline 2009
Armenia: Operating & Financial Highlights
Revenue* (RUR bn) & OIBDA Margin
Capex
/ Revenue LTM
Mobile Subscribers, ‘000
Mobile ARPU & MOU
-36.0%
0.4
655
486
481
544
784
502
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
430
363
337
372
479
437
269
238
175
150
140
165
0
6
12
18
24
30
36
42
48
54
60
66
72
78
84
90
96
102
108
114
120
126
132
138
144
150
156
162
168
174
180
186
192
198
204
210
216
222
228
234
240
246
252
258
264
270
276
282
288
294
300
306
312
318
324
330
336
342
348
354
360
366
372
378
384
390
396
402
408
414
420
426
432
438
444
450
456
462
468
474
480
486
492
498
504
510
516
522
528
534
540
546
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
80
130
180
230
280
Mobile ARPU (RUR)
Mobile MOU (min)
11%
17%
24%
31%
39%
41%
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
1.7
1.7
1.8
1.5
1.6
1.6
0.9
1.0
1.1
1.0
0.6
0.6
0.7
0.7
0.8
0.6
0.9
1.0
46.9%
48.8%
49.9%
51.7%
50.4%
51.2%
0.00
1.00
2.00
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
Mobile
Fixed
OIBDA Margin
*  Total revenue adjusted for eliminations between fixed 
    and mobile segments in Armenia

2009
15
©
Beeline 2009
Uzbekistan: Operating & Financial Highlights
Revenue (RUR bn) & OIBDA Margin
Capex
/ Revenue LTM
Mobile Subscribers, mln
Mobile ARPU & MOU
+16.0%
3.7
3.6
3.6
2.8
3.1
3.7
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
141
156
158
179
177
151
409
226
239
289
299
295
0
6
12
18
24
30
36
42
48
54
60
66
72
78
84
90
96
102
108
114
120
126
132
138
144
150
156
162
168
174
180
186
192
198
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
80
130
180
230
280
330
380
ARPU(RUR)
MOU (min)
1.23
1.42
1.81
1.98
1.69
1.57
47.1%
51.1%
56.6%
51.4%
56.4%
53.5%
0.00
1.00
2.00
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
Revenue
OIBDA Margin
14%
21%
49%
79%
130%
150%
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09

2009
16
©
Beeline 2009
South-East Asian Operations
Network
Market
Vietnam
Cambodia
98% brand awareness in Phnom-
Penh, 62% for the whole country
2,000 points of sales of SIM and
scratch cards
80% brand awareness in three
main cities (Hanoi, Ho Chi Minh
City and Danang)
10 thousand points of sales of
SIM and scratch cards
1071 base stations on air by the
end of September
Coverage area is 24% of the total
population
370 base stations on air by the
end of September
Coverage area is 47% of the total
population
•
Entered into an agreement to acquire Lao operations from Millicom

2009
17
©
Beeline 2009
Summary
•
Continued to develop our business with revenue growth and
high margins
•
Sound financial position and strong cash generation abilities.
•
Transaction
announced
by
Altimo
and
Telenor
will
enhance
our
opportunities for future growth

2009
18
©
Beeline 2009
APPENDICES

2009
19
©
Beeline 2009
Map of Operations
*GDP(PPP), $ per capita
Source: CIA World Factbook; AC&M-Consulting; Global Mobile, Company estimates
Population: 45.7 mln.
Acquired: Nov. 2005
Penetration: 119%
GDP* 7400
Population: 4.6 mln.
Acquired: Jul. 2006
Penetration: 87%
GDP* 4,600
Population: 7.3 mln.
Acquired: Jan. 2006
Penetration: 56%
GDP* 2,100
Population: 27.6 mln.
Acquired: Jan. 2006
Penetration: 58%
GDP* 2,600
Population: 2.9 mln.
Acquired: Nov. 2006
Penetration: 80%
GDP* 6,300
Population: 15.4 mln.
Acquired: Sept. 2004
Penetration: 10q%
GDP* 11,500
Population: 86.1 mln.
JVA signed: Jul. 2008
Penetration: ~55%
GDP* 2,800
Population: 14.5 mln.
Acquired : Jul. 2008
Penetration: ~25%
GDP* 2,000
2009
©
Beeline 2009
19
Population: 142.0 mln.
Penetration: 140%
GDP*: 16,100

2009
20
©
Beeline 2009
Source: Prime TASS, National Banks of the CIS
countries
FOREX Development
* Balance sheet data reported in this presentation in US$ were translated at the closing exchange rate at the end of respective
periods.
P&L
LTM
and
Capex
LTM
data
in
US$
were
calculated
as
the
sum
of
respective
quarterly
results
in
US$
reported
in
2008
plus the respective result of 2009 quarters translated at the respective average exchange rates.  
3Q09
1Q09
4Q08
2Q09
0.06
0.032
n/a
n/a
n/a
n/a
11.9
0.040
0.040
0.19
4.73
Opening
rate
0.032
0.031
n/a
0.033
0.056
0.054
0.05
0.05
0.05
0.05
0.06
0.06
11.91
0.032
0.032
0.25
4.82
Average
Rate
9.6
0.029
0.029
0.23
4.09
Average
Rate
10.5
0.034
0.034
0.26
4.11
Closing
Rate
11.2
0.037
0.037
0.23
4.41
Average
Rate
11.6
0.032
0.032
0.25
4.82
Closing
Rate
11.5
0.031
0.031
0.24
4.68
Average
Rate
10.9
0.029
0.029
0.23
4.44
Closing
Rate
Closing
Rate
12.81
0.033
0.033
0.27
5.02
GEL
Currency
USD
AMD
USD
USD
UAH
KZT
30.1
31.3
31.3
32.2
34.0
33.9
29.4
27.3
25.4
RUR

2009
21
©
Beeline 2009
Composition of the CIS Business
3Q 2009
Revenues, RUR mln
CAPEX, RUR mln
OIBDA, RUR mln
1,773
1,611
468
11,076
279
1,568
5,387
Kazakhstan
Ukraine
Uzbekistan
Armenia
Tajikistan
Georgia
CIS Total
3,187
738
825
162
5,322
380
30
Kazakhstan
Ukraine
Uzbekistan
Armenia
Tajikistan
Georgia
CIS Total
16
80
756
48
95
310
207
Kazakhstan
Ukraine
Uzbekistan
Armenia
Tajikistan
Georgia
CIS Total

2009
22
©
Beeline 2009
CIS Mobile: Financial Highlights
Kazakhstan
Ukraine
Uzbekistan
Revenue, RUR bn
OIBDA, RUR bn
Armenia
Tajikistan
Georgia
1.1
1.2
1.3
1.7
1.9
1.6
1.7
1.0
0.9
1.3
1.1
5.3
5.0
5.1
5.3
4.8
4.3
1.5
3.1
2.6
2.6
2.6
2.5
2.2
0.6
0.8
0.9
1.1
0.8
0.7
0.1
-0.2
0.2
0.0
0.1
0.1
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
0.62
0.77
0.74
0.72
0.63
0.64
0.27
0.45
0.49
0.46
0.36
0.16
0.21
0.23
0.28
0.47
0.13
0.09
0.16
0.17
0.16
0.14
0.12
0.06
0.03
0.00
-0.02
-0.03
-0.03
-0.05
0.24
0.34
0.34
0.36
0.30
0.31
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09

2009
23
©
Beeline 2009
CIS Mobile: Subscribers, mln
Kazakhstan
Ukraine
Uzbekistan
Armenia
Tajikistan
Georgia
2.1
2.4
2.1
1.9
1.9
2.2
2.8
3.1
3.6
3.7
3.6
3.7
6.8
6.6
6.4
6.3
5.6
5.1
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
0.44
0.53
0.62
0.72
0.68
0.71
0.17
0.19
0.23
0.25
0.29
0.34
0.50
0.49
0.48
0.54
0.78
0.65
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09

2009
24
©
Beeline 2009
CIS Mobile: ARPU & MOU Development
Kazakhstan
Ukraine
Uzbekistan
Armenia
Tajikistan
Georgia
258
254
269
295
294
290
168
167
151
190
235
178
141
151
177
179
158
156
409
226
239
289
299
295
204
218
213
230
262
231
98
91
81
101
110
108
0.0
6.0
12.0
18.0
24.0
30.0
36.0
42.0
48.0
54.0
60.0
66.0
72.0
78.0
84.0
90.0
96.0
102.0
108.0
114.0
120.0
126.0
132.0
138.0
144.0
150.0
156.0
162.0
168.0
174.0
180.0
186.0
192.0
198.0
204.0
210.0
216.0
222.0
228.0
234.0
240.0
246.0
252.0
258.0
264.0
270.0
276.0
282.0
288.0
294.0
300.0
306.0
312.0
318.0
324.0
330.0
336.0
342.0
348.0
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
0
70
140
210
280
350
372
479
437
221
251
263
240
222
239
266
286
284
289
363
224
430
337
194
129
123
121
130
110
89
173
173
172
243
256
241
269
238
175
150
165
140
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
2Q 08
3Q 08
4Q 08
1Q 09
2Q 09
3Q 09
0
70
140
210
280
ARPU
MOU

2009
25
©
Beeline 2009
Reconciliation of Consolidated  OIBDA and
OIBDA Margin (Unaudited)
(RUR millions)
Sept 30,
2009
June 30,
2009
March 31,
2009
Dec 31, 
2008
Sept 30,
2008
June 30,
2008
OIBDA
35,980
34,958
32,166
30,648
33,636
28,889
Depreciation
(11,452)
(10,451)
(10,452)
(10,325)
(9,687)
(9,097)
Amortization
(2,229)
(2,257)
(2,448)
(2,577)
(2,381)
(2,383)
Impairment loss
0
0
0
(12,072)
0
0
Operating Income
22,299
22,250
19,266
5,674
21,568
17,409
OIBDA margin
50.4%
50.6%
48.1%
44.0%
48.8%
46.8%
Less: Depreciation as % of
net operating revenues
(16.0%)
(15.1%)
(15.6%)
(14.9%)
(14.0%)
(14.7%)
Less: Amortization as % of
net operating revenues
(3.1%)
(3.3%)
(3.7%)
(3.7%)
(3.5%)
(3.9%)
Less: Impairment loss as %
of net operating revenues
0.0%
0.0%
0.0%
(17.3%)
0.0%
0.0%
Operating Income
31.3%
32.2%
28.8%
8.1%
31.3%
28.2%
Three
months
ended
Reconciliation
of
OIBDA
to
operating
income
Reconciliation
of
OIBDA
margin
to
operating
income
as
percentage
of
net
operating
revenue

VIP-Group

 

(in RUR millions, unless stated otherwise) (unaudited)  

CONSOLIDATED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   39,145      44,409      49,901      49,538      51,138      61,684      68,933      69,677      66,843      69,035      71,338   

Gross margin

   32,120      36,275      40,555      40,487      40,643      47,538      52,096      52,276      50,959      53,810      55,146   

Gross margin, %

   82.1 %    81.7 %    81.3 %    81.7 %    79.5 %    77.1 %    75.6 %    75.0 %    76.2 %    77.9 %    77.3 % 

OIBDA

   20,162      23,192      25,899      22,636      27,315      28,889      33,636      30,648      32,166      34,958      35,980   

OIBDA, %

   51.5 %    52.2 %    51.9 %    45.7 %    53.4 %    46.8 %    48.8 %    44.0 %    48.1 %    50.6 %    50.4 % 

SG&A

   11,561      12,787      14,198      17,644      12,820      18,278      18,167      21,465      18,206      18,458      18,760   

including Sales & Marketing Expenses

   3,581      4,315      4,738      5,408      4,525      5,074      5,867      7,784      5,302      5,414      5,766   

including advertising

   1,355      1,726      1,689      2,277      1,682      2,109      2,083      2,766      882      1,195      1,191   

including General & Administrative Costs

   7,980      8,472      9,460      12,236      8,295      13,204      12,300      13,681      12,904      13,044      12,994   

SG&A, %

   29.5 %    28.8 %    28.5 %    35.6 %    25.1 %    29.6 %    26.4 %    30.8 %    27.2 %    26.7 %    26.3 % 

Net income (loss)

   7,294      9,291      11,686      9,073      14,587      11,109      6,513      -22,243      -8,514      22,599      13,513   

Capital Expenditures

   7,984      8,658      8,643      19,613      8,696      15,689      16,799      23,328      3,925      5,027      3,842   

MOBILE

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   38,244      43,498      48,943      48,642      47,153      51,457      58,245      58,558      54,917      58,208      60,659   

including Mobile Interconnect

   5,238      6,235      6,878      7,477      7,269      7,638      8,606      8,902      8,168      8,554      8,781   

Mobile OIBDA

   19,737      22,713      25,401      22,074      26,004      26,077      30,252      26,968      27,388      30,278      31,524   

Mobile OIBDA, %

   51.6 %    52.2 %    51.9 %    45.4 %    55.1 %    50.7 %    51.9 %    46.1 %    49.9 %    52.0 %    52.0 % 

Subscribers (‘000)

   45,784      47,702      50,686      51,740      52,293      53,707      57,758      61,029      62,724      63,676      65,358   
                0         
                0         

FIXED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   901      911      958      896      4,248      11,260      12,367      13,595      15,018      14,575      15,142   

including business segment

   0      0      0      0      1,804      5,366      5,698      5,950      6,265      5,708      5,432   

including wholesale segment

   0      0      0      0      1,228      3,916      4,710      5,388      6,359      6,577      7,242   

including residential segment

   901      911      958      896      1,216      1,978      1,959      2,257      2,394      2,290      2,468   

Fixed OIBDA

   425      479      498      562      1,336      2,848      3,438      3,770      4,918      4,735      4,515   

Fixed OIBDA, %

   47.2 %    52.6 %    52.0 %    62.7 %    31.5 %    25.3 %    27.8 %    27.7 %    32.7 %    32.5 %    29.8 % 

Broadband subscribers (‘000)

   0      0      0      0      542      617      785      1,221      1,560      1,739      1,930   

Reconciliation of OIBDA total

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

OIBDA

   20,162      23,192      25,899      22,636      27,315      28,889      33,636      30,648      32,166      34,958      35,980   

Depreciation

   (7,081 )    (7,380 )    (7,286 )    (8,176 )    (8,661 )    (9,097 )    (9,687 )    (10,325 )    (10,452 )    (10,451 )    (11,452 ) 

Amortization

   (1,402 )    (1,392 )    (1,418 )    (1,381 )    (1,635 )    (2,383 )    (2,381 )    (2,577 )    (2,448 )    (2,257 )    (2,229 ) 

Impairment loss

   0      0      0      0      0      0      0      (12,072 )    0      0      0   

Operating income

   11,679      14,420      17,195      13,079      17,019      17,409      21,568      5,674      19,266      22,250      22,299   

OIBDA margin total

   51.5 %    52.2 %    51.9 %    45.7 %    53.4 %    46.8 %    48.8 %    44.0 %    48.1 %    50.6 %    50.4 % 

Less: Depreciation as a percentage of net operating revenues

   (18.1 )%    (16.6 )%    (14.6 )%    (16.5 )%    (16.9 )%    (14.7 )%    (14.0 )%    (14.9 )%    (15.6 )%    (15.1 )%    (16.0 )% 

Less: Amortization as a percentage of net operating revenues

   (3.6 )%    (3.1 )%    (2.8 )%    (2.8 )%    (3.2 )%    (3.9 )%    (3.5 )%    (3.7 )%    (3.7 )%    (3.3 )%    (3.1 )% 

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 % 

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 %    28.8 %    32.2 %    31.3 % 

Russia

 

(in RUR millions, unless stated otherwise) (unaudited)  

CONSOLIDATED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   33,648      37,759      42,171      41,938      43,597      52,915      58,816      58,809      56,272      59,136      61,211   

Gross margin

   28,004      31,257      34,784      34,762      35,049      40,881      44,892      44,157      42,663      46,000      46,964   

Gross margin, %

   83.2 %    82.8 %    82.5 %    82.9 %    80.4 %    77.3 %    76.3 %    75.1 %    75.8 %    77.8 %    76.7 % 

OIBDA

   17,796      20,167      22,226      19,060      24,081      25,041      29,457      25,849      27,227      30,279      30,951   

OIBDA, %

   52.9 %    53.4 %    52.7 %    45.4 %    55.2 %    47.3 %    50.1 %    44.0 %    48.4 %    51.2 %    50.6 % 

SG&A

   9,858      10,829      12,177      15,592      10,514      15,521      15,191      18,198      14,936      15,417      15,644   

including Sales & Marketing Expenses

   2,998      3,645      4,044      4,594      3,823      4,273      4,918      6,706      4,485      4,726      4,940   

including advertising

   1,112      1,448      1,423      1,955      1,357      1,748      1,747      2,351      659      991      943   

including General & Administrative Costs

   6,860      7,184      8,133      10,998      6,691      11,248      10,273      11,492      10,451      10,691      10,704   

SG&A, %

   29.3 %    28.7 %    28.9 %    37.2 %    24.1 %    29.3 %    25.8 %    30.9 %    26.5 %    26.1 %    25.6 % 

Net income (loss)

   7,375      9,198      10,781      8,962      14,954      10,616      6,274      -12,132      -6,722      21,835      13,754   

Capital Expenditures

   5,249      4,886      5,531      11,516      5,022      10,010      12,224      17,495      3,070      3,440      2,827   

MOBILE

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   33,648      37,759      42,171      41,938      40,644      44,004      49,401      48,987      45,653      49,410      51,502   

including Mobile Interconnect

   4,491      5,259      5,725      6,232      6,128      6,378      7,006      7,173      6,604      7,015      7,112   

Mobile OIBDA

   17,796      20,167      22,226      19,060      23,265      22,895      26,772      22,902      23,222      26,427      27,360   

Mobile OIBDA, %

   52.9 %    53.4 %    52.7 %    45.4 %    57.2 %    52.0 %    54.2 %    46.8 %    50.9 %    53.5 %    53.1 % 

Subscribers (‘000)

   38,631      40,140      41,802      42,221      42,079      42,485      45,093      47,677      49,351      49,971      51,028   

ARPU, RUR

   286.7      319.1      342.6      332.6      320.7      347.6      368.2      340.6      306.6      322.5      331.4   

MOU, min

   160.9      192.6      208.9      204.1      198.7      220.3      228.5      227.8      203.0      211.8      213.6   

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 % 

FIXED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   0      0      0      0      3,191      9,788      10,789      11,962      13,308      13,007      13,583   

including business segment

   0      0      0      0      1,648      4,891      5,160      5,463      5,789      5,278      5,011   

including wholesale segment

   0      0      0      0      1,200      3,788      4,523      5,188      6,134      6,316      7,154   

including residential segment

   0      0      0      0      343      1,109      1,106      1,311      1,385      1,413      1,418   

Fixed OIBDA

   0      0      0      0      816      2,146      2,685      2,947      4,005      3,852      3,591   

Fixed OIBDA, %

   0      0      0      0      25.6 %    21.9 %    24.9 %    24.6 %    30.1 %    29.6 %    26.4 % 

Broadband subscribers (‘000)

   0      0      0      0      530      604      764      1,182      1,498      1,659      1,833   

Reconciliation of OIBDA total

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

OIBDA

   17,796      20,167      22,226      19,060      24,081      25,041      29,457      25,849      27,227      30,279      30,951   

Depreciation

   (6,121 )    (6,217 )    (6,373 )    (6,631 )    (6,969 )    (7,318 )    (8,047 )    (7,999 )    (8,195 )    (8,452 )    (8,975 ) 

Amortization

   (751 )    (736 )    (752 )    (754 )    (852 )    (1,454 )    (1,298 )    (1,412 )    (1,313 )    (1,253 )    (1,252 ) 

Impairment loss

   0      0      0      0      0      0      0      (8,591 )    0      0      0   

Operating income

   10,924      13,214      15,101      11,675      16,260      16,269      20,112      7,847      17,719      20,574      20,724   

OIBDA margin total

   52.9 %    53.4 %    52.7 %    45.4 %    55.2 %    47.3 %    50.1 %    44.0 %    48.4 %    51.2 %    50.6 % 

Less: Depreciation as a percentage of net operating revenues

   (18.2 )%    (16.5 )%    (15.1 )%    (15.8 )%    (15.9 )%    (13.9 )%    (13.7 )%    (28.3 )%    (14.6 )%    (14.3 )%    (14.7 )% 

Less: Amortization as a percentage of net operating revenues

   (2.2 )%    (1.9 )%    (1.8 )%    (1.8 )%    (2.0 )%    (2.7 )%    (2.2 )%    (2.4 )%    (2.3 )%    (2.1 )%    (2.0 )% 

Less: Impairment loss as a percentage of net operating revenues

   0.0 %    0.0 %    0.0 %    0.0 %    0.0 %    0.0 %    0.0 %    (33.2 )%    0.0 %    0.0 %    0.0 % 

Operating income as a percentage of net operating revenues

   32.5 %    35.0 %    35.8 %    27.8 %    37.3 %    30.7 %    34.2 %    13.3 %    31.5 %    34.8 %    33.9 % 

CIS

 

(in RUR millions, unless stated otherwise) (unaudited)  

CONSOLIDATED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   5,549      6,727      7,797      7,753      7,687      9,170      10,663      11,441      11,287      10,668      11,076   

Gross margin

   4,125      5,034      5,771      5,741      5,599      6,664      7,226      8,129      8,305      7,843      8,210   

Gross margin, %

   74.3 %    74.8 %    74.0 %    74.0 %    72.8 %    72.7 %    67.8 %    71.1 %    73.6 %    73.5 %    74.1 % 

OIBDA

   2,366      3,024      3,673      3,575      3,259      3,885      4,232      4,889      5,079      4,908      5,322   

OIBDA, %

   42.6 %    45.0 %    47.1 %    46.1 %    42.4 %    42.4 %    39.7 %    42.7 %    45.0 %    46.0 %    48.0 % 

SG&A

   1,712      1,974      2,022      2,068      2,287      2,727      2,945      3,186      3,140      2,844      2,851   

including Sales & Marketing Expenses

   583      671      694      814      703      801      949      1,078      771      633      748   

including advertising

   243      293      267      322      325      363      351      416      223      167      215   

including General & Administrative Costs

   1,129      1,303      1,328      1,254      1,584      1,926      1,996      2,108      2,369      2,211      2,103   

SG&A, %

   30.9 %    29.3 %    25.9 %    26.7 %    29.8 %    29.7 %    27.6 %    27.8 %    27.8 %    26.7 %    25.7 % 

Net income (loss)

   -81      93      905      111      -346      528      323      -7,593      -374      841      86   

Capital Expenditures

   2,735      3,771      3,112      8,097      3,543      5,645      4,527      5,547      416      817      756   

MOBILE

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   4,648      5,816      6,839      6,857      6,570      7,536      8,999      9,655      9,331      8,859      9,221   

including Mobile Interconnect

   747      976      1,153      1,245      1,141      1,260      1,605      1,736      1,570      1,545      1,672   

Mobile OIBDA

   1,941      2,545      3,175      3,013      2,739      3,182      3,479      4,065      4,166      4,025      4,398   

Mobile OIBDA, %

   41.8 %    43.8 %    46.4 %    43.9 %    41.7 %    42.2 %    38.7 %    42.1 %    44.6 %    45.4 %    47.7 % 

Subscribers (‘000)

   7,153      7,562      8,884      9,519      10,214      11,222      12,665      13,352      13,373      13,626      14,235   
                0         
                0         
                0         
                0         

FIXED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   901      911      958      895      1,140      1,751      1,907      1,991      2,169      2,040      2,167   

including business segment

   0      0      0      0      158      476      536      490      476      431      421   

including wholesale segment

   0      0      0      0      92      334      423      446      557      584      696   

including residential segment

   901      911      958      895      890      941      948      1,055      1,136      1,025      1,050   

Fixed OIBDA

   425      479      498      562      520      703      753      824      913      883      924   

Fixed OIBDA, %

   47.2 %    52.6 %    52.0 %    62.8 %    45.6 %    40.1 %    39.5 %    41.4 %    42.1 %    43.3 %    42.6 % 

Broadband subscribers (‘000)

   0      0      0      0      12      13      21      39      62      80      97   

Reconciliation of OIBDA total

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

OIBDA

   2,366      3,024      3,673      3,575      3,259      3,885      4,232      4,889      5,079      4,908      5,322   

Depreciation

   (960 )    (1,163 )    (913 )    (1,545 )    (1,692 )    (1,779 )    (1,640 )    (2,323 )    (2,253 )    (1,982 )    (2,304 ) 

Amortization

   (651 )    (655 )    (666 )    (627 )    (783 )    (929 )    (1,083 )    (1,165 )    (1,135 )    (997 )    (962 ) 

Impairment loss

   0      0      0      0      0      0      0      (2,456 )    0      0      0   

Operating income

   755      1,206      2,094      1,403      784      1,177      1,509      (1,055 )    1,691      1,929      2,056   

OIBDA margin total

   42.6 %    45.0 %    47.1 %    46.1 %    42.4 %    42.4 %    39.7 %    42.7 %    45.0 %    46.0 %    48.0 % 

Less: Depreciation as a percentage of net operating revenues

   (17.3 )%    (17.4 )%    (11.7 )%    (19.9 )%    (22.0 )%    (19.5 )%    (15.3 )%    (20.2 )%    (19.9 )%    (18.6 )%    (20.7 )% 

Less: Amortization as a percentage of net operating revenues

   (11.7 )%    (9.7 )%    (8.5 )%    (8.1 )%    (10.2 )%    (10.1 )%    (10.2 )%    (10.2 )%    (10.1 )%    (9.3 )%    (8.7 )% 

Less: Impairment loss as a percentage of net operating revenues

   0      0      0      0      0      0      0      (21.5 )%    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 % 

Kazakhstan

 

(in RUR millions, unless stated otherwise) (unaudited)  

CONSOLIDATED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   3,141      3,862      4,264      4,304      3,951      4,377      4,815      5,369      5,223      5,061      5,387   

Gross margin

   2,320      2,895      3,115      3,164      2,884      3,328      3,701      4,057      3,958      3,876      4,260   

Gross margin, %

   73.9 %    75.0 %    73.1 %    73.5 %    73.0 %    76.0 %    76.9 %    75.6 %    75.8 %    76.6 %    79.1 % 

OIBDA

   1,631      2,078      2,248      2,272      1,988      2,277      2,573      2,663      2,672      2,745      3,187   

OIBDA, %

   51.9 %    53.8 %    52.7 %    52.8 %    50.3 %    52.0 %    53.4 %    49.6 %    51.2 %    54.2 %    59.2 % 

SG&A

   669      820      833      833      844      1,028      1,112      1,374      1,268      1,110      1,078   

including Sales & Marketing Expenses

   289      368      353      422      313      357      425      618      402      283      332   

including advertising

   98      116      128      137      114      137      133      241      101      39      59   

including General & Administrative Costs

   380      452      480      411      531      671      687      756      866      827      746   

SG&A, %

   21.3 %    21.2 %    19.5 %    19.4 %    21.4 %    23.5 %    23.1 %    25.6 %    24.3 %    21.9 %    20.0 % 

Net income (loss)

   346      424      552      488      341      461      726      2,083      -426      967      1,280   

Capital Expenditures

   822      1,184      1,033      2,376      1,034      1,311      1,868      2,172      191      376      310   

MOBILE

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   3,141      3,862      4,264      4,304      3,932      4,312      4,750      5,282      5,145      4,988      5,311   

including Mobile Interconnect

   540      685      727      814      689      729      780      857      794      752      797   

Mobile OIBDA

   1,631      2,078      2,248      2,272      1,979      2,225      2,495      2,558      2,584      2,643      3,064   

Mobile OIBDA, %

   51.9 %    53.8 %    52.7 %    52.8 %    50.3 %    51.6 %    52.5 %    48.4 %    50.2 %    53.0 %    57.7 % 

Subscribers (‘000)

   3,501      3,858      4,343      4,604      4,777      5,098      5,614      6,270      6,377      6,635      6,835   

ARPU, RUR

   320.1      352.2      346.1      321.1      280.3      289.9      294.1      294.6      268.5      253.6      257.9   

MOU, min

   72.3      88.8      112.7      98.9      99.1      109.7      108.1      100.5      81.1      90.7      98.1   

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 % 

FIXED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   0      0      0      0      27      115      146      194      166      190      211   

including business segment

   0      0      0      0      7      23      20      28      23      25      16   

including wholesale segment

   0      0      0      0      20      92      126      165      141      163      193   

including residential segment

   0      0      0      0      0      0      0      1      2      2      2   

Fixed OIBDA

   0      0      0      0      9      52      78      105      88      102      123   

Fixed OIBDA, %

   0      0      0      0      33.3 %    45.2 %    53.4 %    54.1 %    53.0 %    53.7 %    58.3 % 

Broadband subscribers (‘000)

   0      0      0      0      0      0      0      0.2      0.2      0.3      0.3   

Reconciliation of OIBDA total

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

OIBDA

   1,631      2,078      2,248      2,272      1,988      2,277      2,573      2,663      2,672      2,745      3,187   

Depreciation

   (416 )    (454 )    (382 )    (497 )    (520 )    (607 )    (583 )    (783 )    (812 )    (696 )    (779 ) 

Amortization

   (241 )    (244 )    (232 )    (238 )    (236 )    (262 )    (385 )    (435 )    (478 )    (412 )    (399 ) 

Operating income

   974      1,380      1,634      1,537      1,232      1,408      1,605      1,445      1,382      1,637      2,009   

OIBDA margin total

   51.9 %    53.8 %    52.7 %    52.8 %    50.3 %    52.0 %    53.4 %    49.6 %    51.2 %    54.2 %    59.2 % 

Less: Depreciation as a percentage of net operating revenues

   (13.3 )%    (11.7 )%    (8.9 )%    (11.5 )%    (13.1 )%    (13.8 )%    (12.1 )%    (14.6 )%    (15.5 )%    (13.8 )%    (14.5 )% 

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 )% 

Operating income as a percentage of net operating revenues

   30.9 %    35.7 %    38.4 %    35.7 %    31.2 %    32.2 %    33.3 %    26.9 %    26.5 %    32.3 %    37.3 % 

Ukraine

 

(in RUR millions, unless stated otherwise) (unaudited)  

CONSOLIDATED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   429      615      943      851      1,086      1,683      2,283      1,922      1,609      1,645      1,773   

Gross margin

   249      349      595      514      649      933      766      925      903      968      1,048   

Gross margin, %

   58.0 %    56.7 %    63.1 %    60.4 %    59.8 %    55.4 %    33.6 %    48.1 %    56.1 %    58.8 %    59.1 % 

OIBDA

   -172      -80      165      90      79      221      -40      316      215      322      380   

OIBDA, %

   n/a      n/a      17.5 %    10.6 %    7.3 %    13.1 %    n/a      16.4 %    13.4 %    19.6 %    21.4 % 

SG&A

   420      427      420      432      568      709      794      590      663      629      650   

including Sales & Marketing Expenses

   152      141      134      129      163      187      212      128      120      123      160   

including advertising

   102      95      70      85      114      120      110      51      57      51      71   

including General & Administrative Costs

   268      286      286      303      405      522      582      462      543      506      490   

SG&A, %

   97.9 %    69.4 %    44.5 %    50.8 %    52.3 %    42.1 %    34.8 %    30.7 %    41.2 %    38.2 %    36.7 % 

Net income (loss)

   -484      -446      -164      -433      -478      -136      -890      -8,810      -488      -339      -1,197   

Capital Expenditures

   772      1,190      664      1,359      644      1,279      1,137      1,578      96      95      95   

MOBILE

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   429      615      943      851      883      1,079      1,653      1,296      894      956      1,066   

including Mobile Interconnect

   141      197      277      269      280      316      485      405      299      295      307   

Mobile OIBDA

   -172      -80      165      90      28      59      -215      155      -2      82      140   

Mobile OIBDA, %

   n/a      n/a      17.5 %    10.6 %    3.2 %    5.5 %    n/a      12.0 %    n/a      8.6 %    13.1 % 

Subscribers (‘000)

   1,953      1,822      2,212      1,941      1,971      2,111      2,403      2,052      1,894      1,934      2,199   

ARPU, RUR

   79.5      109.4      149.3      137.5      147.3      177.8      234.9      189.9      151.4      166.8      168.3   

MOU, min

   138.0      159.9      168.2      183.2      210.2      231.0      261.5      230.0      213.3      217.8      203.7   

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 % 

FIXED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   0      0      0      0      216      670      787      719      836      800      879   

including business segment

   0      0      0      0      133      398      458      402      376      330      327   

including wholesale segment

   0      0      0      0      72      241      295      279      416      419      501   

including residential segment

   0      0      0      0      11      31      34      38      44      51      51   

Fixed OIBDA

   0      0      0      0      51      162      175      161      217      240      240   

Fixed OIBDA, %

   0      0      0      0      23.6 %    24.2 %    22.2 %    22.4 %    26.0 %    30.0 %    27.3 % 

Broadband subscribers (‘000)

   0      0      0      0      12      13      16      24      40      53      70   

Reconciliation of OIBDA total

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

OIBDA

   (172 )    (80 )    165      90      79      221      (40 )    316      215      322      380   

Depreciation

   (84 )    (112 )    (113 )    (322 )    (274 )    (352 )    (436 )    (406 )    (363 )    (382 )    (443 ) 

Amortization

   (137 )    (135 )    (133 )    (76 )    (174 )    (294 )    (310 )    (280 )    (231 )    (220 )    (210 ) 

Impairment loss

   0      0      0      0      0      0      0      (2,456 )    0      0      0   

Operating income

   (393 )    (327 )    (81 )    (308 )    (369 )    (425 )    (786 )    (2,826 )    (379 )    (280 )    (273 ) 

OIBDA margin total

   n/a      n/a      17.5 %    10.6 %    7.3 %    13.1 %    n/a      16.4 %    13.4 %    19.6 %    21.4 % 

Less: Depreciation as a percentage of net operating revenues

   n/a      n/a      (12.0 )%    (37.9 )%    (25.3 )%    (20.9 )%    n/a      (21.0 )%    (22.6 )%    (23.2 )%    (25.0 )% 

Less: Amortization as a percentage of net operating revenues

   n/a      n/a      (14.1 )%    (8.9 )%    (16.0 )%    (17.5 )%    n/a      (14.6 )%    (14.4 )%    (13.4 )%    (11.8 )% 

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 % 

Operating income as a percentage of net operating revenues

   n/a      n/a      (8.6 )%    (36.2 )%    (34.0 )%    (25.3 )%    n/a      (147.0 )%    (23.6 )%    (17.0 )%    (15.4 )% 

Uzbekistan

 

(in RUR millions, unless stated otherwise) (unaudited)  

CONSOLIDATED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   478      601      769      901      958      1,229      1,416      1,813      1,984      1,693      1,568   

Gross margin

   399      516      658      765      809      1,016      1,179      1,439      1,597      1,326      1,181   

Gross margin, %

   83.5 %    85.9 %    85.6 %    84.9 %    84.4 %    82.7 %    83.3 %    79.4 %    80.5 %    78.3 %    75.3 % 

OIBDA

   227      295      432      438      509      657      798      932      1,122      865      738   

OIBDA, %

   47.5 %    49.1 %    56.2 %    48.6 %    53.1 %    53.5 %    56.4 %    51.4 %    56.6 %    51.1 %    47.1 % 

SG&A

   169      216      221      322      298      353      374      499      462      446      433   

including Sales & Marketing Expenses

   74      64      98      129      119      120      160      192      129      120      151   

including advertising

   18      22      27      35      49      45      55      63      31      45      51   

including General & Administrative Costs

   95      152      123      193      179      233      214      307      333      326      282   

SG&A, %

   35.4 %    35.9 %    28.7 %    35.7 %    31.1 %    28.7 %    26.4 %    27.5 %    23.3 %    26.3 %    27.6 % 

Net income (loss)

   65      110      175      147      183      340      533      320      332      171      58   

Capital Expenditures

   208      479      608      2,061      1,162      1,955      688      471      50      241      207   

MOBILE

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   478      601      769      901      939      1,168      1,345      1,731      1,884      1,594      1,467   

including Mobile Interconnect

   0.0      0.1      0.1      0.1      0.2      0.2      0.3      93      103      124      158   

Mobile OIBDA

   227      295      432      438      502      642      774      900      1,082      825      696   

Mobile OIBDA, %

   47.5 %    49.1 %    56.2 %    48.6 %    53.5 %    55.0 %    57.5 %    52.0 %    57.4 %    51.8 %    47.4 % 

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   

ARPU, RUR

   177.1      186.7      193.1      168.0      141.4      155.8      157.5      178.5      177.1      150.6      140.7   

MOU, min

   242.2      265.6      289.8      283.4      265.3      294.6      298.5      288.6      238.6      225.6      409.3   

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 % 

FIXED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   0      0      0      0      19      61      71      82      101      100      103   

including business segment

   0      0      0      0      17      54      57      60      77      76      78   

including wholesale segment

   0      0      0      0      1      2      2      3      0      2      2   

including residential segment

   0      0      0      0      1      5      12      19      24      22      23   

Fixed OIBDA

   0      0      0      0      7      15      24      32      40      40      42   

Fixed OIBDA, %

   0      0      0      0      37.5 %    24.6 %    33.8 %    39.0 %    39.6 %    40.0 %    40.8 % 

Broadband subscribers (‘000)

   0      0      0      0      0      0      0      5.8      6.8      7.6      8.3   

Reconciliation of OIBDA total

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

OIBDA

   227      295      432      438      509      657      798      932      1,122      865      738   

Depreciation

   (81 )    (86 )    (102 )    (126 )    (165 )    (158 )    (173 )    (243 )    (387 )    (360 )    (390 ) 

Amortization

   (89 )    (88 )    (88 )    (86 )    (92 )    (89 )    (91 )    (125 )    (138 )    (115 )    (111 ) 

Operating income

   57      121      242      226      252      410      534      564      597      390      237   

OIBDA margin total

   47.5 %    49.1 %    56.2 %    48.6 %    53.1 %    53.5 %    56.4 %    51.4 %    56.6 %    51.1 %    47.1 % 

Less: Depreciation as a percentage of net operating revenues

   (17.0 )%    (14.4 )%    (13.3 )%    (14.0 )%    (17.2 )%    (12.9 )%    (12.3 )%    (13.4 )%    (19.5 )%    (21.3 )%    (24.9 )% 

Less: Amortization as a percentage of net operating revenues

   (18.6 )%    (14.6 )%    (11.4 )%    (9.5 )%    (9.6 )%    (7.2 )%    (6.4 )%    (6.9 )%    (7.0 )%    (6.8 )%    (7.1 )% 

Operating income as a percentage of net operating revenues

   11.9 %    20.1 %    31.5 %    25.1 %    26.3 %    33.4 %    37.7 %    31.1 %    30.1 %    23.0 %    15.1 % 

Armenia

 

(in RUR millions, unless stated otherwise) (unaudited)  

CONSOLIDATED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   1,425      1,511      1,617      1,474      1,433      1,528      1,667      1,738      1,787      1,584      1,611   

Gross margin

   1,116      1,190      1,272      1,166      1,111      1,181      1,274      1,327      1,401      1,218      1,217   

Gross margin, %

   78.3 %    78.8 %    78.7 %    79.1 %    77.5 %    77.3 %    76.4 %    76.4 %    78.4 %    76.9 %    75.5 % 

OIBDA

   718      777      838      801      704      717      813      867      924      799      825   

OIBDA, %

   50.4 %    51.4 %    51.8 %    54.3 %    49.1 %    46.9 %    48.8 %    49.9 %    51.7 %    50.4 %    51.2 % 

SG&A

   373      382      405      330      406      442      447      454      449      381      378   

including Sales & Marketing Expenses

   44      57      62      85      65      89      90      68      57      51      50   

including advertising

   16      21      20      42      28      39      27      32      19      19      17   

including General & Administrative Costs

   329      325      343      245      341      353      357      386      392      330      328   

SG&A, %

   26.2 %    25.3 %    25.0 %    22.4 %    28.3 %    28.9 %    26.8 %    26.1 %    25.1 %    24.1 %    23.5 % 

Net income (loss)

   67      102      407      6      -365      -31      90      -328      339      136      84   

Capital Expenditures

   142      527      528      1,091      356      494      462      646      9      12      48   

MOBILE

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   524      600      659      578      555      623      764      742      721      634      637   

including Mobile Interconnect

   60      83      105      105      109      124      194      194      177      165      169   

Mobile OIBDA

   293      298      340      239      251      243      337      341      356      298      306   

Mobile OIBDA, %

   55.9 %    49.7 %    51.6 %    41.3 %    45.2 %    39.0 %    44.1 %    46.0 %    49.4 %    47.0 %    48.0 % 

Subscribers (‘000)

   439.9      471.0      447.0      442.4      520.4      654.5      783.6      544.3      480.8      486.3      502.0   

ARPU, RUR

   383.0      447.4      450.0      429.4      391.7      362.5      336.9      371.6      478.7      436.9      429.7   

MOU, min

   141.3      185.1      181.0      171.8      158.9      164.9      139.9      150.0      174.7      238.4      269.0   

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 % 

FIXED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   901      911      958      896      878      905      903      996      1,066      950      974   

including business segment

   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   

including residential segment

   901      911      958      896      878      905      903      996      1,066      950      974   

Fixed OIBDA

   425      479      498      562      453      474      476      526      568      501      519   

Fixed OIBDA, %

   47.2 %    52.6 %    52.0 %    62.7 %    51.6 %    52.4 %    52.7 %    52.8 %    53.3 %    52.7 %    53.3 % 

Broadband subscribers (‘000)

   0      0      0      0      0      0      5.4      9.2      15.3      19.2      18.1   

Reconciliation of OIBDA total

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

OIBDA

   718      777      838      801      704      717      813      867      924      799      825   

Depreciation

   (367 )    (484 )    (272 )    (539 )    (654 )    (540 )    (321 )    (723 )    (479 )    (338 )    (494 ) 

Amortization

   (154 )    (152 )    (177 )    (191 )    (245 )    (232 )    (243 )    (270 )    (223 )    (188 )    (182 ) 

Operating income

   197      141      389      71      (195 )    (55 )    249      (126 )    222      273      149   

OIBDA margin total

   50.4 %    51.4 %    51.8 %    54.3 %    49.1 %    46.9 %    48.8 %    49.9 %    51.7 %    50.4 %    51.2 % 

Less: Depreciation as a percentage of net operating revenues

   (25.8 )%    (32.0 )%    (16.8 )%    (36.5 )%    (45.6 )%    (35.3 )%    (19.3 )%    (41.6 )%    (26.8 )%    (21.3 )%    (30.7 )% 

Less: Amortization as a percentage of net operating revenues

   (10.8 )%    (10.1 )%    (10.9 )%    (13.0 )%    (17.1 )%    (15.2 )%    (14.6 )%    (15.5 )%    (12.5 )%    (11.9 )%    (11.3 )% 

Operating income as a percentage of net operating revenues

   13.8 %    9.3 %    24.1 %    4.8 %    (13.6 )%    (3.6 )%    14.9 %    (7.2 )%    12.4 %    17.2 %    9.2 % 

Tajikistan

 

(in RUR millions, unless stated otherwise) (unaudited)  

CONSOLIDATED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   75      134      195      199      203      266      358      448      487      461      468   

Gross margin

   41      84      131      125      126      170      243      312      348      338      357   

Gross margin, %

   54.7 %    62.7 %    67.2 %    62.8 %    62.1 %    63.9 %    67.9 %    69.6 %    71.5 %    73.3 %    76.3 % 

OIBDA

   -9      2      42      33      32      63      115      144      164      173      162   

OIBDA, %

   (12.0 )%    1.5 %    21.5 %    16.6 %    15.8 %    23.7 %    32.1 %    32.1 %    33.7 %    37.5 %    34.6 % 

SG&A

   50      81      90      87      98      107      126      168      184      165      195   

including Sales & Marketing Expenses

   21      33      37      34      30      33      42      48      43      35      32   

including advertising

   8      17      13      12      13      13      13      13      10      6      8   

including General & Administrative Costs

   29      48      53      53      68      74      84      120      141      130      163   

SG&A, %

   66.7 %    60.4 %    46.2 %    43.7 %    48.3 %    40.2 %    35.2 %    37.5 %    37.8 %    35.8 %    41.7 % 

Net income (loss)

   -26      -46      -7      -62      -30      -71      -7      -20      -8      0      -11   

Capital Expenditures

   354      148      156      498      176      319      156      488      15      24      16   

MOBILE

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   75      134      195      199      203      266      358      448      487      461      468   

including Mobile Interconnect

   6      11      42      51      48      68      114      148      147      153      169   

Mobile OIBDA

   -9      2      42      33      32      63      115      144      164      173      162   

Mobile OIBDA, %

   n/a      1.5 %    21.5 %    16.6 %    15.8 %    23.7 %    32.1 %    32.1 %    33.7 %    37.5 %    34.6 % 

Subscribers (‘000)

   145.3      204.9      268.4      339.4      377.9      435.3      526.6      624.6      722.3      677.1      706.0   

ARPU, RUR

   228.2      261.6      276.8      221.9      194.7      221.1      250.7      262.5      239.7      221.6      224.1   

MOU, min

   205.8      224.2      230.3      216.3      205.8      241.1      255.9      243.4      171.7      173.1      173.3   

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 % 

FIXED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   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   

including wholesale segment

   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   

Fixed OIBDA

   0      0      0      0      0      0      0      0      0      0      0   

Fixed OIBDA, %

   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   

Reconciliation of OIBDA total

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

OIBDA

   (9 )    2      42      33      32      63      115      144      164      173      162   

Depreciation

   (9 )    (15 )    (24 )    (36 )    (42 )    (75 )    (74 )    (94 )    (115 )    (114 )    (109 ) 

Amortization

   (4 )    (4 )    (4 )    (4 )    (4 )    (8 )    (6 )    (7 )    (8 )    (8 )    (8 ) 

Operating income

   (22 )    (17 )    14      (7 )    (14 )    (20 )    35      43      41      51      45   

OIBDA margin total

   n/a      1.5 %    21.5 %    16.6 %    15.8 %    23.7 %    32.1 %    32.1 %    33.7 %    37.5 %    34.6 % 

Less: Depreciation as a percentage of net operating revenues

   n/a      (11.2 )%    (12.2 )%    (18.1 )%    (20.7 )%    (28.2 )%    (20.6 )%    (20.9 )%    (23.7 )%    (24.7 )%    (23.3 )% 

Less: Amortization as a percentage of net operating revenues

   n/a      (3.0 )%    (2.1 )%    (2.0 )%    (2.0 )%    (3.0 )%    (1.7 )%    (1.6 )%    (1.6 )%    (1.7 )%    (1.7 )% 

Operating income as a percentage of net operating revenues

   n/a      (12.7 )%    7.2 %    (3.5 )%    (6.9 )%    (7.5 )%    9.8 %    9.6 %    8.4 %    11.1 %    9.6 % 

Georgia

 

(in RUR millions, unless stated otherwise) (unaudited)  

CONSOLIDATED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   1      4      9      23      59      92      131      162      205      229      279   

Gross margin

   0      0      1      6      20      37      63      71      99      117      148   

Gross margin, %

   -10.0 %    -7.5 %    11.1 %    26.1 %    33.9 %    40.2 %    48.1 %    43.8 %    48.3 %    51.1 %    53.0 % 

OIBDA

   -31      -49      -53      -59      -53      -50      -27      -33      -18      4      30   

OIBDA, %

   n/a      n/a      n/a      n/a      n/a      n/a      n/a      n/a      n/a      1.7 %    10.8 % 

SG&A

   31      48      53      64      73      87      90      102      117      112      118   

including Sales & Marketing Expenses

   4      8      10      14      13      15      20      24      20      22      24   

including advertising

   1      22      8      10      7      9      14      16      6      6      9   

including General & Administrative Costs

   27      40      43      50      60      72      70      78      97      90      94   

SG&A, %

   n/a      n/a      588.9 %    278.3 %    123.7 %    94.6 %    68.7 %    63.0 %    57.1 %    48.9 %    42.3 % 

Net income (loss)

   -49      -51      -59      -36      3      -35      -129      -838      -123      -94      -127   

Capital Expenditures

   437      243      123      712      171      287      216      192      55      69      80   

MOBILE

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   1      4      9      23      59      92      131      162      205      229      279   

including Mobile Interconnect

   0      0      1      6      15      22      31      40      51      58      76   

Mobile OIBDA

   -31      -49      -53      -59      -53      -50      -27      -33      -18      4      30   

Mobile OIBDA, %

   n/a      n/a      n/a      n/a      n/a      n/a      n/a      n/a      n/a      1.7 %    10.8 % 

Subscribers (‘000)

   7.3      14.0      26.6      72.7      146.2      168.6      189.0      225.1      246.4      289.2      341.0   

ARPU, RUR

   82.5      124.2      176.5      219.0      178.8      194.1      238.9      265.7      285.5      283.6      288.5   

MOU, min

   47.9      82.5      85.1      121.5      87.1      89.3      109.8      129.8      121.2      123.1      129.3   

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 % 

FIXED

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenues

   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   

including wholesale segment

   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   

Fixed OIBDA

   0      0      0      0      0      0      0      0      0      0      0   

Fixed OIBDA, %

   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   

Reconciliation of OIBDA total

   Q1 2007     Q2 2007     Q3 2007     Q4 2007     Q1 2008     Q2 2008     Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

OIBDA

   (31.0 )    (49.0 )    (53.0 )    (59.0 )    (53.0 )    (50.0 )    (27.0 )    (33.0 )    (18.0 )    4.0      30.0   

Depreciation

   (2.0 )    (12.0 )    (19.0 )    (27.0 )    (37.0 )    (45.0 )    (52.0 )    (73.0 )    (96.0 )    (93.0 )    (88.0 ) 

Amortization

   (26.0 )    (32.0 )    (32.0 )    (31.0 )    (32.0 )    (46.0 )    (48.0 )    (49.0 )    (57.0 )    (55.0 )    (53.0 ) 

Operating income

   (59.0 )    (93.0 )    (104.0 )    (117.0 )    (122.0 )    (141.0 )    (127.0 )    (155.0 )    (171.0 )    (144.0 )    (111.0 ) 

OIBDA margin total

   n/a      n/a      n/a      n/a      n/a      n/a      n/a      n/a      n/a      1.7 %    10.8 % 

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      (40.6 )%    (31.6 )% 

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      (24.0 )%    (19.0 )% 

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      (62.9 )%    (39.8 )% 

SEA

 

(in RUR millions, unless stated otherwise)                                                        

CONSOLIDATED

    Q1 2007    Q2 2007    Q3 2007    Q4 2007    Q1 2008    Q2 2008    Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenue

                      0      0      0      28      74   

Gross margin

                      0      0      0      -31      -22   

Gross margin, %

                      n/a      n/a      n/a      n/a      n/a   

OIBDA

                      -4      -23      -55      -174      -234   

OIBDA, %

                      n/a      n/a      n/a      n/a      n/a   

SG&A

                      4      23      54      144      212   

including Sales & Marketing Expenses

                      0      0      0      56      80   

including advertising

                      0      0      0      36      33   

including General & Administrative Costs

                      4      23      54      88      132   

SG&A, %

                      n/a      n/a      n/a      514.3 %    286.5 % 

Net Income

                      -4      48      47      -330      -514   

Capital Expenditures

                      9      202      439      761      258   

MOBILE

    Q1 2007    Q2 2007    Q3 2007    Q4 2007    Q1 2008    Q2 2008    Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenue

                      0      0      0      28      74   

including Mobile Interconnect

                      0      0      0      0      0   

Mobile OIBDA

                      0      0      0      -174      -234   

Mobile OIBDA, %

                      0      0      0      n/a      n/a   

Subscribers (‘000)

                      0      0      0      79      95   

ARPU, RUR

                      0      0      0      n/m      n/m   

MOU, min

                      0      0      0      n/m      n/m   

Churn 3 months active base (quarterly), %

                      0      0      0      n/m      n/m   

FIXED

    Q1 2007    Q2 2007    Q3 2007    Q4 2007    Q1 2008    Q2 2008    Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

Net operating revenue

                            0      0   

including business segment

                            0      0   

including wholesale segment

                            0      0   

including residential segment

                            0      0   

Fixed OIBDA

                            0      0   

Fixed OIBDA, %

                            0      0   

Broadband subscribers (‘000)

                            0      0   

Reconciliation of OIBDA total

    Q1 2007    Q2 2007    Q3 2007    Q4 2007    Q1 2008    Q2 2008    Q3 2008     Q4 2008     Q1 2009     Q2 2009     Q3 2009  

OIBDA

                      (4.0 )    (23.0 )    (55.0 )    (174.0 )    (234.0 ) 

Depreciation

                      -      -      -      (11.0 )    (46.0 ) 

Amortization

                      -      -      -      (7.0 )    (15.0 ) 

Operating income

                      (4.0 )    (23.0 )    (55.0 )    (192.0 )    (295.0 ) 

OIBDA margin total

                      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   

Less: Amortization as a percentage of net operating revenue

                      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