VEON Ltd. — Investor Presentation 2011

Nov 15, 2011

6-K 1 d258569d6k.htm FORM 6-K Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer

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

the Securities Exchange Act of 1934

For the month of November 2011

Commission File Number 1-34694

VimpelCom Ltd.

(Translation of registrant’s name into English)

SOM 2 Bld., Floor 2, Claude Debussylaan 15, 1082 MC,

Amsterdam, the Netherlands

(Address of principal executive offices)

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

Form 20-F x Form 40-F ¨

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

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

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

Yes ¨ No x

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

SIGNATURES

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

VIMPELCOM LTD.
(Registrant)

Date: November 15, 2011

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

1 Global Scope, Local Excellence

2 Disclaimer This presentation contains "forward-looking statements", as the phrase is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to the Company's strategy, development plans and anticipated performance. The forward-looking statements are based on management's best assessment of the Company's strategic and financial position, and future market conditions and trends. These discussions involve risks and uncertainties. The actual outcome may differ materially from these statements as a result of continued volatility in the economies in the markets in which the Company operates, unforeseen developments from competition, governmental regulation of the telecommunications industries and general political uncertainties in the markets in which the Company operates and/or litigation with third parties. The actual outcome may also differ materially if the Company is unable to obtain all necessary corporate approvals relating to its business, if the Company is unable to successfully integrate newly-acquired businesses and other factors. There can be no assurance that these risks and uncertainties will not have a material adverse effect on the Company, that the Company will be able to grow or that it will be successful in executing its strategy and development plans. Certain factors that could cause actual results to differ materially from those discussed in any forward-looking statements include the risk factors described in the Company’s annual report on Form 20-F for the year ended December 31, 2010 filed with the U.S. Securities and Exchange Commission (the “SEC”) and other public filings made by the Company with the SEC, which risk factors are incorporated herein by reference. VimpelCom disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained herein, or to make corrections to reflect future events or developments.

3 Agenda Presentation Time Speaker Driving Value 2012-2014 13:00 Jo Lunder Russia 13:35 Elena Shmatova CIS 14:05 Dmitry Kromskiy Break 14:25 Asia & Africa 14:45 Ahmed Abou Doma Ukraine 15:05 Igor Lytovchenko Italy 15:25 Ossama Bessada Break 15:55 Financials 16:15 Henk van Dalen Conclusion 16:45 Jo Lunder Q&A 17:00 All Informal Drinks 18:00

1 Driving Value 2012 - 2014 Jo Lunder CEO

2 Revenues * (USD million) EBITDA * (USD million) EBITDA EBITDA Margin Mobile Subscribers * (million) Strong Subscriber and Top Line Growth Fixed-line broadband subscribers * (thousands) * Pro-forma; for reconciliation of non-GAAP financial measures, please refer to the Investor Relations part of our website

3 Shared Services Roaming Procurement Governance & Compliance People & Talent Management Business Control & Target Setting Financial Structure Strategy & Portfolio Management VimpelCom’s Operating Model Business Units with Local Excellence and Empowerment Serving more than 200 million customers worldwide Shareholder Returns Global Scope and Value Creation Strategy

4 Telecom Market Expectations • VimpelCom has an attractive footprint: Operating in high growth markets Upside in expected addressable data market Poised to benefit from increasing smartphone penetration 1 – Excluding Data & Messaging 2 – Including roaming Source: Pyramid Research Total telecom market dynamics (Revenues in USD billion) VimpelCom’s footprint market dynamics (excl. Italy) (Revenues in USD billion) Fixed Data Fixed Voice Mobile Data Mobile Voice + Messaging 13.9 16.1 18.0 19.8 15.1 18.2 21.3 24.5 22.5 22.0 21.1 20.3 43.4 43.9 44.7 45.4 2011 2012 2013 2014 CAGR 2011-2014 Italy’s market dynamics (Revenues in EUR billion) Fixed Data Fixed Voice Mobile Data Mobile Voice + Messaging 6.1 6.3 6.5 6.7 3.0 3.2 3.3 3.5 7.8 7.2 6.8 6.4 16.3 15.0 13.9 13.0 2011 2012 2013 2014 CAGR 2011-2014 Fixed Data Fixed Voice Mobile Data Mobile Voice + Messaging CAGR 2011-2014 219 237 254 272 311 353 394 440 307 290 274 261 640 642 642 646 2011 2012 2013 2014 +0% -5% +12% +7% -7% -6% +6% +3% +2% -3% +18% +12%

5 Strong Upside in Addressable Market Pockets of Growth CAGR* 2012 - 2014 VimpelCom’s share of the estimated cumulative market growth 2012 – 2014, based on current market shares VimpelCom is set to benefit from the growing markets across its geographic footprint Mobile Data 1 13% 11% Fixed Data 2 USD USD ~8 billion ~4 billion USD USD ~4 billion ~1 billion 1% Mobile Voice 3 USD ~1 billion USD ~0.1 billion * Source: Pyramid Research & McKinsey ** 90% of VimpelCom revenues covered Estimated cumulative market* increase VimpelCom’s footprint**2012 – 2014

6 Value Creation Strategy in Each Market I Russia Italy Increase Profit and Cash II Growth Engine III Develop New Business Algeria Kazakhstan, Kyrgyzstan Armenia, Tajikistan, Georgia Ukraine Pakistan Bangladesh Uzbekistan Canada Vietnam Laos Cambodia Burundi CAR Zimbabwe Portfolio Contribution Analysis Russia : • Achieving strong revenue growth in data • Converting revenue growth into EBITDA growth • Focus on profitable growth Italy : • Focus on growth areas & maintain leadership in key segments • Leadership in customer satisfaction • • Untapped growth in mobile data • Large addressable markets with increasing penetration • Cost optimization Ukraine: retain strong position; 3G license CIS: data growth sustainable CF Explore alternative network structures outsourcing activities Pakistan & Bangladesh: Mobile internet,

Unified, Disciplined and Accountable Business Performance Culture Profitable Growth Capital Efficiency Operational Excellence Attractive Dividend Build World-Class Organization, Governance and Business Steering Stakeholder Value Value Agenda 2012 - 2014 Increase Net cash from operating activities YoY 7

Unified, Disciplined and Accountable Business Performance Culture Profitable Growth Capital Efficiency Operational Excellence Attractive Dividend Build World-Class Organization, Governance and Business Steering Stakeholder Value Focus in Value Agenda 2012 - 2014 Increase Net cash from operating activities YoY 8

9 Retention Data Price High Value Customers New Mindset to Drive Sustainable Profitable Growth Profitable Growth Subscriber land grabbing Value strategy Top service to High Value Customers Price per voice minute Bundling of services Coverage Speed Speed of Data Access will be differentiating factor Acquisition Retention Customer Life Time versus SAC Create a New Mindset In VimpelCom

10 Monetizing Growth in Data Traffic is Key • Tiered plans • enriched with high-value-perceived features (e.g. free Facebook) • Quality of Service & Speed-Based Propositions • Differentiated propositions to cover niche segments (e.g. Messaging) • Time/geographical yield • Multi-device propositions • Bundling propositions • Fair usage policies • Wi-Fi offloading • P2P shaping Our key measures to achieve smarter mobile data monetization Smart move away from unlimited Rational traffic management Sophisticated differentiation 1 2 3 VimpelCom will benefit from growing mobile data penetration

11 Cost and Capex Traffic dependent Competitor behavior dependent Scale Opportunity Operational Excellence and Cost Efficiency (USD billion) LTM Q3 Usage related costs 6.0 Commercial opex 2.3 Technical & IT opex 2.1 HR costs 1.7 Other SG&A 1.7 Capex 4.8 Total 18.6 Synergy Categories Roaming Procurement Consolidation Group Products and Services New Revenue sources by leveraging scale Other Shared Services Developing Best Practices Knowledge Sharing Synergies 1 2 3 4 5 6 EBITDA to grow more than revenues

12 Reducing Capex to Revenues Potential Russia Ukraine Capex / Revenue 3Q11 LTM by Business Units Become more efficient with capital, benefiting from synergies from Wind Telecom merger reducing capex to revenues over time Capex / revenues versus peers VimpelCom 0% 10% 20% 30% 40% 50% FY 08 FY 09 FY 10 1H 11 LTM 0% 5% 10% 15% 20% 25% 30% FY 08 FY 09 FY 10 1H11 LTM Asia & Africa CIS Europe & North America VimpelCom Telenor Teliasonera Tele2 Telefonica MTS Millicom France Telecom

13 Financial Performance Objectives 2012 - 2014 Key indicators Revenue EBITDA Capex / Revenue (excl. licences) Below 15% By end of 2014 Leverage Net Debt / EBITDA < 2 By end of 2014 Revenue and EBITDA objectives planned to be communicated early 2012 Currently being developed as part of business review process

14 All our five BUs are presenting today Henk van Dalen CFO Business Unit Management Igor Lytovchenko Ukraine Elena Shmatova Russia Ahmed Abou Doma Asia & Africa Dmitry Kromsky CIS Ossama Bessada Europe & NA Group Executive Board Strong Management Team with Empowered BU Management Jo Lunder CEO Jan Edvard Thygesen Deputy CEO and COO *Planned organizational structure from January 1, 2012

1 Russia Elena Shmatova Executive Vice President and Head of the Russia Business Unit

2 Market Industry Trends for Russia Russian Telecom market expected to grow 4% CAGR 2011 - 2014, mainly driven by Mobile Data Total Russian telecom market dynamics* (Revenues in RUR billion) *Source: Pyramid Research 2011 2012 2013 2014 Fixed Data Mobile voice + messaging CAGR, % 2011-2014 Mobile Data Fixed Voice 150 161 176 187 80 110 146 177 355 363 369 376 590 597 599 596 2% 31% 8% 0%

3 Competitive Situation and Market Trends Mobile*: • 84 % pre-paid market • 160% penetration • 3 major players (Megafon, MTS and VimpelCom) with comparable market shares • ARPU USD 10 Fixed*: • Rostelecom is still dominant incumbent (with 39 % subs market share ) • Voice traffic declining due to fixed-to-mobile substitution Mobile market share* (on Revenue), % Rostelecom MTS Vimpelcom Others Er-Telecom Other Tele2 Vimpelcom Megafon MTS Fixed broadband market share* (on subs), % Russian GDP Trend, %** 2012E 2011E 2010 2009 -7.9 2008 2007 2006 * Source: Informa ** Source: RosStat, Ministry of Economic Development of Russia, Prime Minister of Russia 8.2 5.2 4.0 4.1 3.7 8.5 12.5 10.4 10.1 9.9 9.6 3.9 4.6 5.5 6.1 6.2 27.8 28.4 26.4 25.8 26.0 26.1 26.4 26.2 26.6 27.9 29.6 30.3 31.7 31.6 30.2 2008 2009 2010 Q1 2011 Q2 2011 49 39.4 36.1 34.1 33.7 6 7.1 8.2 8.2 8.4 6.3 7.5 8 8.4 8.8 9.7 9.4 10.3 10.3 10.3 29 36.6 37.4 39.0 38.9 2008 2009 2010 Q1 2011 Q2 2011

4 Today’s Performance Revenues ( RUR billion ) EBITDA and EBITDA Margin ( RUR billion ) EBITDA EBITDA Margin Mobile Fixed-line Mobile subscribers ( million ) Broadband subscribers ( thousands ) Fixed BB subs Mobile BB subs 47.9 51.8 53.8 53.8 50.1 54.4 58.1 9.5 9.9 10.5 10.7 10.3 10.8 11.5 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 27.2 29.1 30.2 28.0 25.4 27.1 27.9 47.5% 47.2% 47.0% 43.4% 42.1% 41.5% 40.0% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 51.3 50.9 51.6 52.0 53.0 55.3 56.8 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 1,167 1,199 1,257 1,421 1,569 1,671 1,833 1,169 1,300 1,500 1,927 2,313 2,362 2,387 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

5 • On net traffic stimulation • Active promotions in small screen data segment • Improve customer loyalty and actively manage churn • Optimized sales mix to improve contribution margin in sales • At the beginning of 2011 VIP was premium priced vs competitors • This caused VIP to reposition its focus on closing price gap in 2011 accelerating revenue growth and improved market share • However, resulting APPM decline caused gross margin to fall Revenues Gross Margin Technical Commercial Other Opex EBITDA Addressing Current Issues Issues Actions • Operational excellence program aimed at driving cost savings of at least RUR 5 billion in 2012, including following projects: Network sharing and outsourcing initiatives to decrease network maintenance costs Optimized structure of dealer commissions Optimized cash collection • Acceleration in network construction drove higher maintenance costs • High sales volumes ensure increase in active base • However, total cost of sales SAC is growing faster than revenue • Changing tax legislation brought additional expenses in S&B • EBITDA margin declined to 40%

6 Unified, Disciplined and Accountable Business Performance Culture Profitable Growth Capital Efficiency Operational Excellence Attractive Dividend Yield Build World-Class Organization, Governance and Business Steering Stakeholder Value Focus in Value Agenda 2012-2014 Increase Net cash from operating activities YoY

7 Products Approach • Mobile Voice + messaging • Wholesale • Fixed voice B2C • Fixed voice B2B • Sustain revenue • Focus on margin and cash flow • Use opportunity to capture part of the Fixed voice B2C market (where we are not currently present) by offering VoIP services to FTTB internet subscribers • Mobile Data • Fixed data (FTTB) IP VPN and IPTV • Mobile VAS • Focus on capturing market growth, improving overall margin with high-marginal data revenue • Focus on 2 biggest pockets of growth in mobile VAS: • M2M • M-commerce Source: Internal analysis Focus on ensuring sustainable revenue growth 1 Mature revenue streams Growing revenue streams Core strategic objective is to achieve sustainable growth by finding the optimal balance between focusing on margins and capturing market share

8 Source: AC&M, iKS-consulting, internal analysis • Provide sufficient speed in 3G, enhance EDGE in priority branches • Drive penetration of smartphones in Active Base • Provide unlimited tariffs (tailored for medium screen) for excellent user experience • Unlimited WiFi packages • Provide sufficient speed in 3G • Start offloading traffic to WiFi • Bundle with Fixed Broadband Product portfolio approach Market CAGR, % 2011-14 • Increase coverage of existing cities with currently used FTTB technology • Investigate other technologies for possible connection of low-storey houses • Improve network quality (Channel capacity & reservation) • Addressable audience - 93% of total FTTB Russia subs base • Offer best features and innovative products (#1 IPTV in Functionality ranking in Russia) • Protect Broadband ARPU by product bundling Leveraging fast-growing revenue streams • Enter e-payment market with RURU project (in cooperation with one of largest Russian banks Alfa Bank) • Cooperate with BIG 3 Mobile Operators • Pilot NFC based transport services • Enter Consumer Electronics market • Develop integrated M2M solutions in strategic partnership with key system integrators New pockets of growth Fixed Broadband Mobile Broadband +31% +8% +42% Small screen Medium screen Large screen Internet IP TV M-Commerce M2M 1

9 Customer Experience • Increase level of Customer Satisfaction • Develop and implement strategic programs to improve Customer Experience for both fixed and mobile • Keep a strong focus on customer retention to decrease existing churn rate • Secure #1 position in Brand preference by building clear Brand differentiation • Continue the build up of “Beeline community” offline and online Brand and CRM • Build clear differentiation on the Core Brand Values across key touch points • Apply new segmentation to develop products tailored to customer needs • Enhance loyalty program for “heavy users” segment Ensuring profitable growth by being #1 in brand preference Persistent Effort to Improve Customer Satisfaction and Secure #1 Position in Brand preference New value-based Segmentation

10 Operational Excellence Scope Focus on • Outsourcing • Transport network • RAN sharing Focus on • B2B & B2C sales commission Focus on • Organizational effectiveness • Supply chain optimization • Service office migration Technical improvement Marketing Enhancement Process & Structure Optimization Strategic project Operational Excellence Improve margin Key Areas • Transport Network Optimization • Interconnect cost optimization • CPA margin Main projects Direct Costs ST&A • Dealer commissions optimization • Payment commission • Outsourcing Savings in 2012 At least RUR 5 Billion 2

11 Operational Excellence 86,000 points of sale across Russia Monobrand points of sale Alternative channels of distribution Internet: shops, i-banking, ATM Multibrand points of sale Distribution and Cash Collection 18%* 14%* 30%* 38%* * % of Gross Sales as of 3Q 2011 for distribution distribution network with focus on improving Contribution margin for all channels One of the largest and the most diversified

12 • Plan to reach 95% population coverage in 2012-2013 with new sites development • Plan to roll-out 3G in regions by developing new sites and extending capacities on existing to capture mobile data growth (currently 11K base stations) • We reached 62%* of direct population coverage in all major Russian cities (90 cities) • Traffic compression technologies – giving 10- 15% extra channel capacity • Efficient CAPEX investment in transport network will decrease rental fees • Optimized costs by sharing fiber optic backbone with competition and negotiating prices • Transport network reached 33 thousand km of Domestic Long Distance (DLD) Mobile network National coverage Fixed network Backbone * Source: RosStat (number of households as base for analysis) Improving network efficiency • GSM network: reach 90 + % population coverage with 2G (29 K base satations) 2

13 1H 2011 VIP MS in Revenue divided by MS of the biggest competitor Grow Low Priority 215 30 25 20 15 10 5 0 3 2 2012 Market size estimate 2 high-priority branch clusters There are 2 major types of branches that require different strategies: 1.Branches we should grow MS (Where we are not leaders on the market) 2.Branches we should actively maintain MS (We are leaders on the market) 43 priority branches We have identified 43 first-priority branches (out of 79) based on 2 key criteria: • Beeline market position and • market potential in 2012 Competitive strength (e.g. own transport network) in these regions will be also used as an additional filter to rank branches Having mapped branches to clusters, we have: • 25 in GROW cluster • 18 in ACTIVELY MAINTAIN cluster These branches account for 82% in Market size 2011 25 Actively maintain High-priority branches Size represents branch revenue 1H’ 2011 Second priority branches Increasing Capital Efficiency with segmented approach 18 x 0.00 0.25 0.50 0.75 1.00 1.25 1.50 3

14 Source: Official reporting, internal estimates MTS MF VIP 3 Capital Efficiency Capex to Revenue ratio (Percentage %) Procurement optimization Common transport network construction with competitors Enhanced efficiency in the network planning Effective and efficient Capex spending • Capex to revenue ratio is a good proxy for measuring Capex efficiency • Being an integrated operator should allow us to realize synergies in infrastructure • Maintaining Capex efficiency will be addressed by Capex optimization initiatives in 2012: 19% 17% 24% 25% 29% 26% 30% 30% 20% 8% 19% 19% 2008 2009 2010 1HY11

15 Conclusions • Deliver on the Value Agenda • Maintain top-line growth in mobile and fixed-line segments with rational market approach • Addressing the key issues with Operational Excellence and Customer Experience programs • Deliver profitable growth • Leverage group scale and knowledge to invest efficient in growth

1 CIS Dmitry Kromsky Group Executive Vice President and Head of the CIS Business Unit

2 Market and Competitive Scenario Kazakhstan • 3 international competitors in GSM (Beeline – 2nd). Telia Sonera (K-Cell 1st, Tele2 3rd (newcomer) • 2G penetration 119%, 3G services, LTE test zone first in CIS • Beeline FTTB as 1st alternative, China Transit project over main-line NW Uzbekistan • 3 GSM competitors, Beeline fights for 2nd with Telia Sonera (U-Cell), MTS (Russian competitor subsidiary) is #1 • 2G penetration 79%, 3G operations, LTE by competitors, Beeline LTE in 2012 • Price wars, tough governance, state monopoly for international communication Armenia • 3 international competitors in GSM: Beeline – 2nd, MTS (Russian competitor subsidiary) is 1st, Orange is 3rd • 2G penetration 120%, 3G operations, LTE license - MTS high data usage • Beeline fixed monopoly, stagnating voice, ADSL as fixed BB, growing competition urges for FTTx Kyrgyzstan • 3 GSM competitors (Beeline fights for 1st), penetration 86%, 3G developing fast, EBITDA margin leader together with growth Tajikistan • 4 GSM competitors (Beeline 3rd), 2G penetration 70%,3G operations first in CIS, low data usage, collaboration with BU Russia for migrant Subs Georgia • 3 GSM competitors (Beeline – 3rd and growing), 2G penetration 102%, 3G operations by competitors, 80+% coverage, liberal economy

3 Total Revenue Growth LC 2009 2010 2011 Kazakhstan 7.9% 12.1% 11.5% Tajikistan 16.5% 32.1% 27.5% Uzbekistan -2.4% -0.7% 30.4% Georgia 106.1% 55.5% 24.0% Armenia -7.2% -6.4% 3.4% Market Industry Trends CIS Telecom market expected to grow 7% CAGR 2011-2014, mainly driven by Mobile Data Total CIS telecom dynamics (Revenues in USD million) Fixed Data Fixed Voice Mobile Data Mobile Voice + Messaging -3% +38% +47% CAGR, % 2011-2014 Source: Internal analysis 36 61 97 114 190 270 362 497 64 55 64 59 1,204 1,275 1,398 1,436 2011 2012 2013 2014 +6%

4 Today’s Performance Revenues ( USD billion ) EBITDA and EBITDA Margin ( USD billion ) EBITDA EBITDA Margin Mobile Fixed-line Mobile subscribers ( million ) Broadband subscribers ( thousands ) Fixed BB subs Mobile BB subs

5 Addressing Current Situation Revenues Gross Margin Technical Commercial Other Opex Current Situation Actions EBITDA • Growth in revenue is in line with the market, but it is not fully translated into margins as APPM reduction puts pressure on gross margin • Acceleration and diversification in network construction drives maintenance costs up • SAC growth along with the Subs base growth • Customer retention becomes key on more saturated markets • Increase revenue sharing in dealer commissions to link acquisition cost with the quality of new adds • Automated solutions for customer support based on native languages • Driving market growth, targeting leadership in data on most markets • Create customer experience through developing localized infotainment content and data applications supported with strong push of branded devices • Focusing on convergent services in both B2B and B2C segments in Kazakhstan, Uzbekistan and Armenia • Cost effective 2G solutions to maintain voice as the main revenue stream • Gross Margin is also impacted by Interconnect rate variations and customer device margin • Optimal balance between growth and Opex efficiency • Balanced Device Strategy and GR policy • Running operational excellence program aiming to bring cost savings and improve free cash flow

6 Unified, Disciplined and Accountable Business Performance Culture Profitable Growth Capital Efficiency Operational Excellence Attractive Dividend Yield Build World-Class Organization, Governance and Business Steering Stakeholder Value Focus in Value Agenda 2012-2014 Increase Net cash from operating activities YoY

7 Core strategic objective is to achieve sustainable growth together with Opex/Capex efficiency Matured revenue streams – focus on margin and cash flow Growing revenue streams – capture market share Products Approach • Mobile Voice + messaging • Fixed voice • Wholesale • Sales and Distribution – New channels & regional approach • Further growth of revenue and usage through segmented approach in B2C and B2B offers • Focus on margin and cash flow • Existing subs development & retention through TM and Loyalty programs • Fixed BB\Mobile BB\Voice bundles to secure share of wallet • Mobile Data • Fixed data (FTTB) IP VPN and IPTV • Mobile VAS • Driving market growth, targeting leadership in data on most markets • Create customer experience through developing infotainment content and applications supported with strong push of branded devices • Focusing on M2M products (devices and services) in B2B segment Source: Internal analysis CIS - Growth Engine • Large addressable market • Growing penetration • Untapped growth in mobile data • High revenue growth Profitable Growth 1

8 Mid and small screen BB revenue Large-screen BB subscriber acquisition Scope • Smart pricing through micro-segmented offers • Data packs • Special Youth segment offers • Default APN I.net pricing • Driving revenue through price perception (limited try and buy offers, “light” FB version, etc.) Source: Internal analysis Focus on • Transport network • Aggressive subscriber acquisition • Mirroring of I/net resources • Local resource dev. Focus on • Service quality and availability • Transport network • Smart pricing to avoid unplanned traffic growth Focus on • LTE pilots • Co-branding & cooperation with HW vendors • Data Traffic Management through DPI technology Broad Band Expansion 3G Network Development New technology and projects Strategic project Maximizing cash flow Device penetration New Customer Experience activities • Branded customized devices • Focus on 3G enabled devices • Delivering full range of devices from basic, through feature, to smart-phones and tablets • Partnership programs in content, apps & services to deliver local /nation based content • Branded and Co-branded apps (Opera, social networks) • Moving customer service/inquires to internet (CC through I-chat, I.net self service) Profitable Growth Most important strategic streams development - Internet & Data BB/Device strategies 1

Uzbekistan • CAPEX to revenue ratio is a good proxy for measuring CAPEX efficiency on matured markets • Underinvestment during 2008-2009 crisis and rapid data development is a reason for considerable investment activity in 2011- 2012 for CIS • Key areas for investment are Accelerated 3G rollout to support demand for mobile data New roll-out and expansion to reach parity with competitors on key markets New data technology implementation and piloting, IP TN deployment to win leadership in perception and finally in data revenue • Cost effective 2G solutions to maintain voice as the main revenue stream • Synergies in prices and technologies to improve efficiency and returns Source: Official reporting, internal estimates CAPEX CIS by OpCo (USD million) Kazakhstan Tajikistan Armenia Georgia Kyrgyzstan 0 50 100 150 200 250 300 350 2009 2010 3Q 11 LTM 9 3 Capital Efficiency

10 Conclusions • CIS is still a growth market with penetration below 100% in most of the countries • Relatively low data usage creates promising prospects • Attractive market for international competition • High level of interconnection between CIS countries creates synergy • Optimal balance between capturing market share and maintain margin to provide sustainable growth • Strategy focus on Capex and Opex efficiency and sustainable cash flow

1 Africa & Asia Ahmed Abou Doma Group Executive Vice President and Head of the Africa and Asia Business Unit

2 Africa and Asia Geographic Profile Algeria Pop: 35.0 M Pen: 81% GDP*:7,300 Central African Republic Pop: 4.9 M Pen: 18% GDP*:700 Burundi Pop: 10.2 M Pen: 23% GDP*:300 Zimbabwe Pop: 12.1 M Pen: 58% GDP*:400 Laos Pop: 6.4 M Pen: 79% GDP*: 2,400 Vietnam Pop: 88.7 M Pen: 129% GDP*: 3,100 Cambodia Pop: 15.2 M Pen: 42% GDP*: 2,000 Pakistan Pop: 187.3 M Pen: 58% GDP*:2,500 Bangladesh Pop: 158.6 M Pen: 53% GDP*:1,700 * CIA – The World Factbook © Informa UK Ltd 2011 Population and Penetration figures are provided by © Informa Telecoms & Media –

3 Market and Competitive Scenario Pakistan: • Bangladesh: • Algeria Mobile subscriber developments VIP (million) Revenue developments VIP (USD million) EBITDA and margin VIP (USD million & percentage%) Sub Saharan Africa: • South-East Asia: • • Despite limitations, Djezzy remains a profitable market leader with tremendous data potential In a large market with low penetration levels, banglalink is the fastest growing operator in a rapidly-growing market with strong focus on increasing value share Highly competitive markets offering growth potential Mobilink leads the maturing market, and with a large customer base has great potential for revenue enhancement through data and VAS uptake Leading positions in markets with low penetration levels , healthy APPM, and high growth potential. Internet is a mobile story in Africa.

4 Unified, Disciplined and Accountable Business Performance Culture Profitable Growth Capital Efficiency Operational Excellence Attractive Dividend Yield Build World-Class Organization, Governance and Business Steering Stakeholder Value Focus in Value Agenda 2012 – 2014 Increase Net cash from operating activities YoY

5 VAS & Data Stream • Mobile Data / 3G Launch • VAS • Mobile Financial Services • Launched first App Store in Pakistan. • Enhance VAS offerings to maintain leadership of diverse VAS services in Bangladesh • Launched banglalink “m-wallet” • Rollout of “mobile money” in Burundi • Expected to launch Mobilink in early 2012 • Grow mobile broadband in Algeria & Pakistan by bidding for 3G licenses • Launched services in Zimbabwe and Burundi • Expected launch in Laos before end of 2011 Areas Approach Products Core strategic objective is to further capture organic growth through pursuing 3G data opportunities, in addition to capturing market share Drive Profitable Growth Focus on data growth, value driven pricing and further market penetration Market Share Stream • Mobile Voice & Messaging • Further market penetration and subscriber growth • Value driven pricing • Low cost model strategy • Rationalized competition

6 Operational Excellence Cost Efficiency Revenues Gross Margin Technology Commercial Opex Current Situation Actions • Maintain value-driven pricing • High subscriber growth potential in Africa, SEA and Bangladesh • Explore opportunities for revenue generation through international call center outsourcing services • Leverage large subscriber base to grow voice and non-voice revenue in Pakistan and Bangladesh EBITDA • Low-cost rural solutions, Indoor/Outdoor swaps • Increase resource efficiency; IN free traffic offloading, power saving features, and Hybrid solutions • Achieve higher CapEx/OpEx and enhance quality; Single RAN, All IP, HW modernizations • Explore network outsourcing opportunities • Invest in network modernization to preserve and improve network quality in SEA • Define leaner site configurations through tighter design guidelines to manage CAPEX demands in Algeria • Increase coverage footprint by deploying low CAPEX sites in SSA • Reduce technical OPEX • Enhance margin through capturing mobile data opportunities • Adopt a variable mix of outsourced and in-sourced activities • Increased bandwidth creation will lead to higher demand for mobile internet in Africa • Increase quality and control over the distribution channel • Apply a dual market strategy in Bangladesh: tailored services for high-end segments and optimized services for lower-end segments • Potential for Mobile Financial Services in Pakistan and Bangladesh • Improve margins • Increase top line • Reduce commercial OPEX • Increase consumer awareness and brand loyalty • Brand facelifts in CAR and Zimbabwe • Consolidate Djezzy brand leadership and strengthen emotional bonding with customers • Create a differentiated value position for consumers using Mobilink’s brand structure and market position • Regional Beeline brand standardization, e.g. Rebranding in Laos from Tigo to Beeline • Increase electronic top-up penetration and use non-conventional advertising tools

7 3 Improve Capital Efficiency Leverage Group size to realize CAPEX efficiencies within a cost-optimization strategy CAPEX to Revenue ratio (Percentage %) Technology Levers • Infrastructure sharing • Network outsourcing • Network modernization • Demand management • Innovative solutions to achieve operational efficiency Procurement Levers • Unitary price alignments • Volume aggregation • Market-share redistribution • Scope and SLA optimization Capital Efficiency 0% 5% 10% 15% 20% 25% 30% 35% 40% 2007 2008 2009 2010 9M2011

8 Algeria

9 • Population: 35 M • GDP/capita: $7,300 Market Size: 28.25 M subs Penetration*: 81% Market Players: • Djezzy • Mobilis • Nedjma Market Shares * Djezzy Macro- Environment Regulatory Environment • GDP growth rate for 2010 stood at 3.3% • Young population with 24% of the population under 15 years of age • Country-wide political stability • Government, trade and agriculture sectors account for over 60% of Algeria’s GDP • Hydrocarbons have long been the backbone of the economy, accounting for roughly 60% of budget revenues, 30% of GDP, and over 95% of export earnings • Penetration rate at end of Q3 2011 stood at approximately 81% *Penetration figures are provided based on OTA Closing base and DWH figures for competition ** DWH Market Share • Regulated telecom environment under the ARPT • 3G licensing process launched on September 19 th , 2011 • Ongoing ban on Djezzy’s foreign currency transfers preventing the payment of essential suppliers, as well as the importing of equipment critical to network maintenance and necessary expansion Competitive Landscape Corporate Social Responsibility • Platform to identify and develop young Algerian talents Djezzy is the market leader in a three-player market. • Djezzy: launched its operations in 2002, market leader, has a population coverage of 96%. • ATM: 1 entrant launched in 1999, rebranded their mobile business to Mobilis. ATM is also the sole fixed line provider and owner of internet and international gateways. • Qtel: launched Nedjma in 2004. As challengers, Nedjma is a large contributor to market growth. st

10 Djezzy KPIs Note: foreign exchange rate DZD 72.5542/ USD 1 CAPEX figures excl. GSM licenses and may differ from previously released figures Profitable Growth • Balanced value pricing strategy leading to stable ARPU levels despite high market growth • Focus on data opportunity with internet penetration at 14% (est.2009) Operational Excellence • Consolidate Djezzy brand leadership and strengthen emotional bonding with customers • Increase quality and control over the distribution channel Capital Efficiency • Define leaner site configurations through tighter design guidelines to manage CAPEX demands Strategic Direction Mobile Subscribers (million) Revenues (DZD billion) EBITDA (DZD billion & Percentage %) CAPEX (DZD billion) 13.4 14.1 14.6 15.1 16.3 2007 2008 2009 2010 9M2011 125 135 136 129 102 2007 2008 2009 2010 9M 2011 77 84 78 72 60 2007 2008 2009 2010 9M 2011 22.5 11.5 19.1 6.7 1.4 2007 2008 2009 2010 9M 2011

11 Pakistan

12 • GDP growth rate in 2010 stood at 4.8% • 35% of the population is under 15 years of age • Power Shortages are widespread, but are countered by innovative technological solutions • Slowing devaluation of the Pakistani Rupee against the US Dollar • Heavy floods had a large impact on the country’s population and infrastructure Mobilink Macro- Environment Regulatory Environment Corporate Social Responsibility • Mobilink in partnership with the UN’s Emergency Response Unit, committed about Rs. 81 million for setting up a camp for Internally Displaced families who were affected by the flood. • Mobilink in partnership with UNESCO and Bunyad (a local NGO) has also implemented a pilot project to test the use of mobile phones in facilitating literacy in Pakistan. • Mobilink also has its own billboard skins recycling program, which uses outdated billboard skins to manufacture school bags for underprivileged children, provide scholarships and support local schools. • The regulator, PTA, introduced MNP several years ago, which is currently a high focus for all operators in the Pakistani market • PTA introduced new measures concerning customer data verification, which is to be adopted by all mobile operators, ensuring subscriber information accuracy • PTA is planning to launch an auction for three 3G licenses in 2012 • Population: 187 M • GDP/capita: $2,500 • Market Size: 109 M s • Penetration: 58% Market Players: • Telenor • Ufone • Warid • Zong * Regulator Market Shares. Mobilink is the market leader in a five-player market. • Telenor: 2 nd player in the market, value-driven operator, strong market share position • Ufone: 3 rd player in the market, positive mass market perception • Warid: Have been mostly inactive for the past 2 years, however their level of activity has been increasing lately • Zong: China Mobile’s 1 st venture outside China, last entrant into Pakistani market, offers cheap products and services, aggressive on pricing and market share gains Competitive Landscape 30.7% 18.9% 10.0% 24.5% 16.0% Market Shares * Mobilink Ufone Zong Telenor Warid

13 Mobilink KPIs Profitable Growth • Leverage the large subscriber base in order to unlock revenue potential from non-voice services • Enhance margin through capturing mobile data opportunities with internet penetration estimated at 11% in 2009 Operational Excellence • Increase EBITDA through network OPEX reduction initiatives • Revamp Mobilink’s positioning in the market as well as its brand structure with the objective of creating a differentiated value position in consumers’ minds Capital Efficiency • Adopt innovative technology solutions to use resources more efficiently through IN traffic offloading, power saving and site environmental monitoring systems • Infrastructure sharing • Joint 3G roll-out • Network modernization Strategic Direction Mobile Subscribers (million) Revenues (PKR billion) EBITDA (PKR billion & Percentage %) CAPEX* (PKR billion) 77 88 87 94 73 2007 2008 2009 2010 9M 2011 34 35 32 37 30 44% 40% 36% 40% 41% 2007 2008 2009 2010 9M 2011 32.4 37.7 12.8 12.2 13.0 2007 2008 2009 2010 9M 2011 30.6 28.5 30.8 31.8 33.4 2007 2008 2009 2010 9M 2011 Note: foreign exchange rate PKR 85.8751/ USD 1 *CAPEX figures excl. GSM licenses and may differ from previously released figures

14 Bangladesh

15 banglalink Macro- Environment Regulatory Environment Corporate Social Responsibility banglalink has taken a number of initiatives such as: • Cox’s Bazaar Beach Cleaning Project and International Coastal Cleanup Day • Setting up computer labs in 270 underprivileged schools at different parts of the country under the umbrella of Digital Bangladesh • Has the world’s highest population density • 57% of population below 25 years of age • GDP growth rate was estimated at 6% in 2010 • Government Type: Unitary state and parliamentary democracy • Low Mobile penetration: less than 50% • Heavy existence of Multiple SIMs • Prior to Telecom Act 2010 the Bangladesh Telecommunication Regulatory Commission (BTRC) was the sole telecom market legislator • Receipt of 2G license renewal guidelines, validity of license renewal is for 15 years • BTRC levies a SIM tax that has been reduced to BDT600 or USD8.5 from BDT800 in 2011 • 3G license awarding likely to happen in 2012 • Banks are engaging in the already existing mobile financial services • Population: 158 mln. • GDP/capita: $1,700 • Market Size: 81 M subs • Penetration: 53% Market Players: • Grameenphone • Airtel • Robi • CityCell • TeleTalk Competitive Landscape 44% 27% 19% 7% 2% 2% Market Share GP Banglalink Robi Airtel Citycell Teletalk banglalink places 2 in a 6-player market. • Grameenphone : 1st player, aggressive tariff moves targeting more acquisitions, largest network • Robi: Rebranded from AkTel, started offering data services (GPRS), consistently subsidize SIM tax, aggressive on the VAS communication • Airtel: Baharti Airtel acquired 70% stake in 2010, re-launched with new logo and corporate brand repositioning • CityCell: CDMA operator, offers data services with handset subsidies • TeleTalk: Operated by national fixed incumbent BTCL, offers the lowest flat tariff in the market nd

16 banglalink- KPIs Profitable Growth • Tap into mobile data opportunities with internet penetration rates extremely low in the country • Explore opportunities for revenue generation through international call center outsourcing services • Leverage large base by unlocking mass-market value potential Operational Excellence Capital Efficiency • Capture technology synergies by introducing and swapping into outdoor sites and implementing innovative hybrid solutions • Site sharing Strategic Direction Mobile Subscribers (million) Revenues (BDT billion) EBITDA (BDT billion & Percentage %) CAPEX* (BDT billion) • Apply a dual market strategy providing tailored services for high-end segments, as well as optimized services for lower-end segments in the market 13 20 24 32 28 2007 2008 2009 2010 9M 2011 -3 0 7 9 10 -22% 2% 31% 28% 37% 2007 2008 2009 2010 9M 2011 24.0 28.6 8.7 16.4 6.7 2007 2008 2009 2010 9M 2011 7 10 14 19 22 2007 2008 2009 2010 9M 2011 Note: foreign exchange rate BDT 73.1028/ USD 1 *CAPEX figures excl. GSM licenses and may differ from previously released figures

17 Conclusion • Due to low penetration level, Markets of Asia & Africa BU have largest potential of growth in Vimpelcom Group • Data is our key strategic focus • Strong Leadership positions in large markets provides a solid platform for profitable growth • Managing for value strategy and implementing operational efficiency- gaining mechanisms • Leveraging Group size to realize CAPEX efficiencies within a cost- optimization strategy

1 Ukraine Igor Lytovchenko Executive Vice President and Head of the Ukraine Business Unit

2 24,873 26,116 27,161 28,112 6,552 6,126 5,710 5,310 4,592 5,740 6,888 7,921 2,289 2,369 2,440 2,501 Market Industry Trends Ukraine Telecom market expected to grow 5% CAGR 2011-2014, mainly driven by Fixed Broadband CAGR % 2011 - 2014 Source: State Statistics Committee of Ukraine, Kyivstar analysis Mobile Fixed Voice Fixed Broadband Other 3% 20% 4% -7% Total Ukraine telecom market dynamics (Revenues in UAH billion) 2011 2012 2013 2014

3 Market and Competitive Scenario 7.3% 7.9% 2.1% -15.1% 4.2% 4.5% 4.0% 2006 2007 2008 2009 2010 2011E 2012E Ukrainian GDP Trend** (Percentage %) Mobile Subscriber base (million) Total Revenue Market Share (Percentage %) EBITDA margin (Percentage %) * Sources: Kyivstar analysis ** Sources: State Statistics Committee of Ukraine, Economist IU forecasts, April 2011; Kyivstar analysis BU Ukraine Kyivstar MTS Life Mobile*: • Major players: Kyivstar, MTS, Astelit (brand “Life”). Kyivstar is the leading multiplay operator in Ukraine, with a #1 position in mobile and a #3 position in fixed. • Key consumer trends: high MOU due to proliferation of free on-net pricing model, 30-40% growth in mobile data • Regulatory: pressure on MTR, delays in 3G license auction • Value chain: Minor progress in network sharing due to the absence of massive roll-out, no consolidation in retail Fixed*: • Major competitors: Ukrtelecom (incumbent), Vega, Volia, Datagroup • Kyivstar is the 3rd (behind Ukrtelecom and Volia) but the fastest growing operator in mass market broadband • In fixed voice Kyivstar is focused on the B2B segment where we compete with Ukrtelecom and Datagroup

4 Today’s Performance Revenues* ( USD million ) EBITDA and EBITDA Margin* ( USD million ) EBITDA EBITDA Margin Mobile subscribers* ( million ) Broadband subscribers* ( thousands ) Fixed BB subs Mobile BB subs * Pro forma figures for 1Q 10 and 2Q 10 357 387 426 404 375 412 437 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 174 208 239 217 202 226 235 48.8% 53.6% 56.0% 53.7% 54.0% 54.8% 53.7% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 23.9 24.1 25.1 24.4 24.4 24.7 24.7 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 92 107 149 200 235 293 324 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

5 Addressing Current Situation Revenues Gross Margin Technical Commercial Other Opex Current Situation Actions EBITDA • Macroeconomic growth does not drive recovery in telecom • Mobile segment saturation with declining rate of revenue growth requires us to launch / develop non-mobile businesses putting pressure on margins and capex • Regulatory environment is challenging (delay in 3G license, SMP and MTR regulation, increase in regulatory charges) • Growth of mobile network to cater for growing traffic and development of fixed businesses drive maintenance opex • Significant share of opex is not driven by volume but by inflation and are very hard to control (electricity rate, frequency fees, regulator charges, etc) • Implement organizational development and talent retention programs to further improve integrated corporate culture, employee productivity and motivation • Pricing excellence in mobile and transition to bundles to defend subscriber and revenue market shares • Aggressive FTTB roll-out and leadership in net adds • Integrated mobile-fixed offers to B2B segment • Sale of user devices to stimulate data usage • Stimulate 3G license release and network roll-out • Consumers show preference for a bundle pricing model and are significantly increasing usage of voice, data and multimedia services, which needs to be monetized • Further develop a multichannel retail and distribution model • Transformational projects currently under development: network swap, network outsourcing, potential NW sharing • Local synergies delivery + Global synergies delivery • Frequency related synergies, if we are able to transfer URS frequencies to Kyivstar and/or if refarming becomes possible • Significant reduction of commissions for past two years helped to compensate for NW opex growth, but resulted in the lowest rates vs competition – such levels are not sustainable in future Overall ambition of EBITDA margin management is to achieve sustainable structural opex saving from mobile network swap/outsourcing projects to compensate for margin decline from fixed businesses and finance commercial and organizational priorities/challenges.

6 Unified, Disciplined and Accountable Business Performance Culture Profitable Growth Capital Efficiency Operational Excellence Attractive Dividend Yield Build World-Class Organization, Governance and Business Steering Stakeholder Value Focus in Value Agenda 2012-2014 Increase Net cash from operating activities YoY

7 Deliver profitable revenue growth in segments where we are the market leader and improve market share in segments where we are in the top 3, explore new pockets of growth. Consumer Segment Business Segment Products Approach and key initiatives • Mobile Voice • Mobile Data (EDGE) • FTTB • Multimedia & VAS • Devices • Implement Bundle Strategy with focus on increasing voice and data consumption • Accelerate 3G license acquisition and network roll-out • Build Djuice as a Virtual Arena for music, video, games, and communities to become • Finalize roll-out of FTTB to addressable market and become the #1 alternative • Maintain leadership in multimedia • Build a multichannel retail and distribution model • Mobile Voice • Mobile Data (EDGE) • Fixed Voice • Fixed Data • Wholesale • Data-center • Call-center • Focus on providing a wider portfolio of services to existing customer base (cross- sale synergies) • Explore new pockets of growth: high-speed mobile data-based services proactive fiber optics roll-out to business customers datacenters, cloud-based services, contact centers and network security • Operational improvements in value proposition management, sales management and go-to-market processes to increase revenue Profitable Growth 1

8 Synergy / Global Synergy (ongoing) Scope Source: Internal analysis Focus on • Up- and Cross-sale opportunities • Roaming • FTTB Focus on • Site and equipment re- use, core and transport networks optimization • Global technical and procurement synergies Focus on • Corporate culture integration • Process and IT integration Marketing Workstream Technical Workstream Business Support Functions Strategic project (scoping and analysis) Focus on • Product, service, segment profitability management • Retail Strategy • Device Strategy Focus on • Network SWAP • Network Outsourcing Operational Excellence 3+ (to st art in 2012) • Focus on analysis of current run rate and new operational excellence opportunities • Increase organizational effectiveness in line with motivation system adaptations • Develop tools and methodologies to support continuous improvement and “lean” processes • Optimize internal decision making process (reduce bureaucracy and time-to- decision) Focus on • Adopt motivation system to reflect focus on long-term sustainable growth and efficiency • Operational improvements Operational Excellence Synergy + network transformation Transformation 2

9 Capital Efficiency • Kyivstar has been the leader in capital efficiency in the Ukrainian market, investing more effectively than our competitors while maintaining market leadership • Increase in capex in 2010-2011 is driven by growing voice and data consumption, and significant FTTB roll-out • Future capex needs are driven by the need to increase network capacity and maintain quality in mobile, development of FTTB and B2B Fixed business, potential 3G license acquisition and roll-out • Capex efficiency is to be maintained through: Source: Official reporting, internal estimates 2008 data for Kyivstar only CAPEX to Revenue ratio MTS Life UBU 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 2008 2009 2010 1HY11 Rigorous investment portfolio management process for capex approval, prioritization, release and review Global procurement synergies Transformational projects currently under development – network swap, network outsourcing, potential network sharing Frequency related synergies, if we are able to transfer URS frequencies to Kyivstar and/or if competitors agree to refarming 3

10 Conclusions 1. Challenging context: macroeconomic growth does not drive recovery in telecom, mobile segment saturation, regulatory environment is challenging 2. Strong demand and usage: consumers show preference for a bundle pricing model and are significantly increasing usage of voice, data and multimedia services, which the operators need to monetize 3. Broadband land-grabbing: fixed broadband is in a period of “turf wars”, while development of mobile broadband is hampered by the lack of 3G licenses 4. Balanced strategy: Kyivstar is continuing to implement a balanced strategy of cash flow maximization with gradual transition to bundled mobile offers, development of non-mobile businesses, coupled with lean cost management to deliver best possible cash flows at a cost of minor loss in core mobile market share 5. Key priorities for 2012: 1. Pricing excellence and move to bundles in mobile 2. 3G license and network roll-out 3. FTTB roll-out and leadership in net adds 4. Cost efficiencies through local and global synergies and network transformation 5. Corporate culture integration and motivation system

1 Italy Ossama Bessada Group Executive Vice President and Head of the Europe & North America Business Unit

2 Expected Market Evolution in Italy Telecom market expected to decline 3.6% CAGR 2011-2014, mainly driven by Fixed and Mobile Voice reduction Total Italian telecom market dynamics (Revenues in EUR million) Source: IDC View Forecast 2011 2012 2013 2014 Fixed Data Fixed Voice Mobile Data Mobile Voice + Messaging Wholesale --% -7% -6% +6% +3% Mobile: • Mobile Voice + Messaging declining over 2011–2014 (-7%). Voice decline mainly due to MTR reduction. Excluding MTR impact the 2011-14 CAGR for Mobile Voice would be -4% • The reduction in voice is partially compensated by increase in Mobile Data (excl Messaging) which grows 6%. CAGR, % 2011–2014 6.143 6.326 6.499 6.692 2.990 3.169 3.348 3.528 7.761 7.226 6.798 6.446 16.285 15.023 13.920 13.030 268 276 280 270 Fixed Fixed Voice market is expected to decrease by -6.0% CAGR 2011–2014 partially offset by Increase of Fixed Data up 2.9%

3 Regulatory Environment and Expected Development Termination rates • Mobile: AGCOM proposal for MTR glide path 2012–2015 under consultation • Fixed: 2011 values same as 2010, symmetry between OLOs and incumbent from 2012 EU commission proposal for harmonization of roaming charges under discussion Public consultation on NGN currently ongoing, discussion tables under way at local and national level LLU wholesale prices for 2011 and 2012 defined in 2010, subject to quality checks on wholesale performance EU commission (Kroes) interested in pushing fibre investment through an approach that would lower copper access prices unless incumbents invest in fibre networks and switch-off the old copper networks

4 Market and Competitive Scenario Mobile: • 86% pre-paid market • Multiple SIM market • 151% penetration • 2 incumbents (Telecom Italia & Vodafone) with comparable market shares Fixed: • Telecom Italia still dominant incumbent (70% of revenue market share ) • Voice traffic declining due to fixed-to-mobile substitution • Low broadband/personal computer penetration vs. other European countries Italian GDP Trend (1) (%) Mobile market share (on SIM) (2) Fixed broadband market share (2) (1) Sources: Banca d'Italia, ISTAT, Confindustria, IMF, OECD, Italian Government’s Relazione previsionale e programmatica, Eurostat (2) Internal sources; Mobile market excluding MVNO WIND Revenues value share increase 2008 – 2011 (H1) Others 38.6% 35.1% 34.2% 34.6% 33.3% 34.0% 33.8% 32.8% 9.4% 10.0% 10.0% 9.9% 18.7% 20.9% 22.0% 22.7% 2008 2009 2010 Q3 2011 +3.5p.p. 59.8% 56.4% 53.9% 52.6% 7.0% 9.7% 11.9% 12.8% 13.1% 13.2% 12.9% 12.9% 8.1% 7.5% 6.9% 6.4% 12.0% 13.2% 14.4% 15.2% 2008 2009 2010 Q3 2011 2.0 1.5 - 1.3 -5.2 1.3 0.8 0.6 2006 2007 2008 2009 2010 2011E 2012E

5 645 122 173 501 308 789 725 16.3% 15.5% 9.5% 15.5% 9.8% 14.0% 10.0% WIND (Italy) Base (Belgium) Cosmote (Greece) E-plus (Germany) Orange (Spain) Bouygues (France) O2 (UK) European Third Entrant Mobile Operator Comparison Source: Bank of America Merrill Lynch WIND mobile CAPEX + allocation of Common CAPEX in proportion with revenues Revenues – FY 2010 (EUR million) EBITDA and EBITDA Margin – FY 2010 (EUR million) Capex – FY 2010 Capex/Revenues (EUR million) Mobile Customer Base – FY 2010 (thousands) Only Mobile Capex 11.4% 3,963 785 1,812 3,241 3,158 5,636 7,279 WIND (Italy) Base (Belgium) Cosmote (Greece) E-plus (Germany) Orange (Spain) Bouygues (France) O2 (UK) 1,834 271 668 1,374 764 1,315 1,851 46.3% 34.5% 36.8% 42.4% 24.2% 23.3% 25.4% WIND (Italy) Base (Belgium) Cosmote (Greece) E-plus (Germany) Orange (Spain) Bouygues (France) O2 (UK) 19,928 2,982 7,990 20,427 11,940 11,084 11,084 WIND (Italy) Base (Belgium) Cosmote (Greece) E-plus (Germany) Orange (Spain) Bouygues (France) O2 (UK) 450

6 Operating and Financial Highlights Revenues (EUR million) EBITDA and EBITDA Margin (EUR million) EBITDA EBITDA Margin Mobile Fixed-line Mobile subscribers (million) Fixed Broadband subscribers (thousands) 937 1,046 1,021 1,038 982 1, 029 1,026 357 366 341 408 369 3 70 371 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 18.8 19.3 19.6 19.9 2 0.3 2 0.6 20.8 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 1,700 1,800 1,800 1,900 2,000 2,100 2,100 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 483 556 534 534 496 565 565 37.3% 39.4% 40.9% 37.0% 36.8% 37.6% 40.5% Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

7 Addressing Current Situation Revenues Gross Margin Technical Commercial Other Opex Current Situation Actions • Maintaining rational behavior; limit use of promotions • Target new areas of growth • Focus on all-inclusive bundles • Continue to pursue on-net strategy to minimize MTR impact • Focus on data growth, not impacted by MTR EBITDA • Vendor consolidation • Site sharing • Opportunistic review of media presence • Maintain current headcount • Increase productivity • Improve collection effectiveness • Maintain rational pricing behavior • Competitive pressure in mobile • Regulatory pressure on MTR • Increase in OPEX tied to expansion of network infrastructure • Increase in commercial OPEX tied to competitive environment and larger distribution footprint • Higher costs of personnel mainly driven by renewal of the collective agreement which led to a new contractual installment increase • Increase in collection times on fixed line SME/SOHO • Slowdown of top line coupled with costs associated to competitive dynamics • Increase of monthly access fees in relation to higher LLU/WLR monthly fees • Retail prices increased in Jan. 2010

8 Unified, Disciplined and Accountable Business Performance Culture Profitable Growth Capital Efficiency Operational Excellence Attractive Dividend Yield Build World-Class Organization, Governance and Business Steering Stakeholder Value Focus in Value Agenda 2012-2014 Increase Net cash from operating activities YoY

9 Profitable Growth Focus on high value customers and up-selling to existing customers • CB reached 522K in Sep ‘11 • Four ‘All Inclusive’ bundle offerings including Voice, SMS, Internet browsing and Smartphone • Strong performance for SIM only version • Bundle offerings are part of convergent offering from Wind and Infostrada • Loyalty program providing benefits for all customers • A clear, simple and transparent approach to the market based on “option plans concept” • Leverage on off-net options (Noi Tutti family) to attract new customers from competitors • Push on-net portfolio offer (Noi Wind family) to extend Wind community • 75% of customer base has at least one option plan • Maintaining leadership position in the ethnic segment Post-paid Core Offer Pre-paid Post-paid customer base (in Thousands) Noi “community” (Million SIM) 9.1 9.7 10.4 10.9 2008 2009 2010 Q3 2011 71 110 303 522 2008 2009 2010 Q3 2011

10 • New organizational structure in place to offer convergent proposition for consumer and corporate segments • Infostrada products and services increasingly sold in the WIND shops • Harmonization of look and feel between WIND and Infostrada brands • Launched in 2010 a commercial bundle, Super Tutto Incluso, which combines the Tutto Incluso dual-play offering with a postpaid mobile offering in one monthly bill. Absolute ADSL Happy Italy Tutto Incluso Happy NoLimit Low High Calling usage Low High • Unlimited F2F calls • ADSL pay per use • Unlimited F2F calls • ADSL unlimited • Calls pay per use • ADSL pay per use • Calls pay per use • ADSL unlimited Infostrada product portfolio-Only Fixed Convergent Offer Infostrada Offer Driver Net acquisition consumer + micro. (thousands) • Simple and complete product portfolio positioned as best in value for money • Focus on 2P offers to leverage ADSL growing demand • Same offer nationwide (LLU/WLR) to exploit ADV synergies • Net acquisition consumer + microbusiness on Pull sales channels ( Shops mainly + inbound telesales + web) • 18% of fixed-line sales are through WIND’s shops Profitable Growth Focus on high value customers and up-selling to existing customers H1 2010 H1 2011 +66%

11 WIND’s market share in Corporate segment is below its share in Consumer segment representing a very interesting growth opportunity 4,756 (41%) Enterprise SME Microbusiness Coporate Market Value Total TLC Revenues (in EUR million) 6,772 (59%) • Convergence • Quality of Service (i.e., dedicated support structures and SLAs) • Managed services (e.g., unified communication, security, energy management) • ICT Applications • Mobile app store • Collaborative CRM • Cloud Services: Iaas/Saas Strategic Drivers Business Results Enterprise Revenue Growth 2011 vs. 2010 Micro & SME Revenue Growth 2011 vs. 2010 Profitable Growth Focus on high value customers and up-selling to existing customers 8.0% 0.1% WIND Market 9.0% 0.8% WIND Market

12 Broadband revenues (EUR million) CAGR: +52% • Smart choice for Mobile Internet navigation • Simple portfolio mainly based on “Unlimited” offers with fair usage policy and no extra cap (first mover in the market) • Strong focus on customer experience improvement • 26% of Wind calling customers browse on Mobile Internet Mobile Broadband customers * (thousand) Internet Broadband revenues (EUR million) CAGR: +21% Fixed Broadband customers (thousand) Unbundled sites 1 * Consumer customers that have performed at least one mobile Internet event in the previous month on 2.5G/3G/3.5G network technology Profitable Growth Surf the Broadband wave

13 • Maintain leadership in customer satisfaction • Continue relentless improvement of Customer Care effectiveness both for mobile and fixed • Keep a strong focus on customer retention and maintain a lower than market churn rate • Continue the build up of “WIND community” • Defend leadership acquired in geographic and market segments (e.g. Centre/South market leadership and ethnic markets) CRM • Push on cross selling and up selling to migrate customers on option plans with higher value in terms of ARPU and margin. • Strong effort to defend High Value Customers from increasing MNP pressure Customer satisfaction index (Fixed) Customer satisfaction index (Mobile) Operational Excellence Relentless Effort to Improve Customer Satisfaction 81.8 82.9 82.3 81.7 81.8 76.8 78.2 78.3 79.8 80.0 76.2 77.7 78.2 76.2 76.5 81.4 80.5 80.5 81.3 81.0 77.7 79.0 81.8 81.5 79.7 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 82.4 82.3 81.8 81.4 82.6 78.3 76.7 77.4 79.0 78.3 80.0 79.3 78.1 79.2 79.4 73.9 72.7 75.8 78.2 78.7 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 2

14 • WIND continues to invest in its distribution through owned shops and franchises which have gone through a comprehensive restyling • A concept store was opened in top location in Milan in 2010 and in Rome in 2011 • Institutional campaign “Più vicini” (Closer to you) to enhance the brand values of customer intimacy and being part of a community recently renewed to push on the concept of being clear, comprehensible, transparent * Point of sales • WIND has a nationwide sales and distribution footprint comprised of over 2,300 sales points • Selected initiatives launched to improve Wind’s brand image and distribution platform include: Acquisition of 126 Wind-owned shops mainly located in shopping malls during 2009 Provision of one-shop experience and staff training to realize cross-selling opportunities Improved and enlarged agent sales force • Acquisition in June 2011 of a minority stake in SPAL TLC (its main distributor) • WIND plans to continue investment in areas where it has limited presence and high growth opportunities Sales and distribution network Strengthening distribution Brand and Advertising Operational Excellence Strengthen Distribution Wind image differentiation compared to competitors Dealer Franchising + Own shops Large Retail POS * 1,996 2,092 2,200 2,434 2,690 14% 16% 24% 23% 22% 49% 58% 58% 54% 50% 37% 26% 18% 23% 28% 2007 2008 2009 2010 Q3 2011 2

15 Key transformation projects Mobile network • GSM network completed: reached 99.7% population coverage with GPRS/EDGE nationwide coverage • HSDPA network developed : 88.9% population coverage , with plans to expand further, 14.4 Mbps available in all major Italian cities Fixed network • 1,239 LLU sites: c. 54% direct population coverage in all major It alian cities with plans to further expand the coverage • Nationwide WLR utilization in order to cover areas with no LLU cover age Fixed network • More than 21,000 km of solid fiber optic backbone supporting fixed and mobile businesses Network structure* * As of September 30, 2011 Target Year End 2011 91% Operational Excellence Investments to Support Growth 51.1% 57.9% 66.0% 81.5% 88.9% 2007 2008 2009 2010 Q3 2011 2 Site Sharing • First phase completed in Q1 2011, involving over 1,000 sites • Average 50% saving on rental costs for shared sites • Now in second phase of implementation, with additional 1000 sites, to be completed by mid 2012 IT Strategic Sourcing of Application Development/Management • Vendor consolidation, 5 year engagements, leveraging off-shoring • Time-to-Market reduction through new operating model • Significant productivity improvement over the 5 years in the Application Development activities • Over 25% saving against the 5 years TCO baseline, now running in first year of operation Phoenix (new CRM platform) • Program to completely renew the CRM platform by consolidating 3 legacy systems, providing more efficient development, enhanced features and flexible management of the customer base • Deployment completed, currently in final stage of consumer customer migration

16 Capital Efficiency Benefit from Capex and Opex synergies within the larger VimpelCom group Selectively explore alternative structures to optimize Network costs, including infrastructure sharing Leverage scale to negotiate better terms for terminals procurement Drive development and specifications mainly in relation to CPE and terminals 3

17 Driving data growth in the future: Focus on Italian 4G/LTE Frequencies Auction

18 Expected Market Evolution 23% 25% 32% 3% 4% 5% 21% 26% 42% 53% 45% 21% Basic phone Data card/tablet Corporate 1 2015E 2011E 2010 “Data” relevant • By 2020 mobile data service will be key decision driver for the majority of the market • 4G will be key for operators Italian market revenues split by device 1. Includes Wholesale and other TLC revenues SOURCE: team analysis on IDC (Q1 2011); Yankee Group (Q1 2011); Strategy Analytics (Q1 2011); Pyramid (Q2 2011); Cisco (Feb 2011); Merrill Lynch Wireless Matrix (Q1 2011); Deutsche Bank - Overview of the Italian Telecoms market (Q1 2011) Smart- phone

19 Mobile Data Traffic Expected Growth SOURCE: Team analysis, Cisco, Strategy Analytics, YG, IDC Total traffic expected to grow 26x in the next 10 years PByte Italy, 2010-2020, PByte 123 209 339 527 783 1,118 1,518 1,964 2,413 2,833 3,174 2010 11 12 13 14 15 16 17 18 19 20

20 4G/LTE Auction Final Outcome • The acquired frequency cost a total of EUR 1,120 million of which EUR 682 million paid at the beginning of November; the remaining outstanding amount will be payable over five yearly installments starting from end of 2012 • The first spectrum payment was funded by €182 million of cash on hand and a €500 million loan from WAF. • The 2,600MHz spectrum will be available by the end of 2012 whereas the 800MHz spectrum will be available for use by the awardees at the beginning of 2013 and both will have a validity until 2029. Player 1,800 MHz 2,100MHz 2,600 MHz 800 MHz 900 MHz FDD/TDD slots Auctioned FDD slots won in Sept 2011 auction The combination of the acquired 4 contiguous 2,600 MHz blocks will allow WIND to exploit the LTE technology to the maximum performance Available in 2013 Option available in 2011

21 The 4G/LTE Opportunity for WIND • MTRs expected to decline over the coming years reducing incoming voice revenues • Voice tariffs will continue to be under pressure • Data will grow both in terms of consumer demand and in terms of corporate demand, including M2M applications – volumes of data expected to grow 26x over 2010-20 Mobile Data will increasingly become the key decision driver for the majority of the market: • More content downloaded in same amount of time; relevant for data intense services such as music or video • “Always-on” service experience • Better response time between sending and receiving data, making real-time applications possible (e.g., VoIP, gaming) • Lower cost/Gbyte • Ability to capture mobile broadband revenue upside • That main competitors do not have a structural advantage • Ability to bundle voice with data and avoid revenue loss 4G allows to step-change customer experience in mobile data : For WIND 4G is critical to ensure:

22 Conclusions • Focus on new growth areas • Defending critical and traditional success factors • Maintaining leadership positioning in key segments Profitable growth Continue to outperform in a highly competitive and declining market • Maintain leadership in customer satisfaction • Leverage extensive network to serve fixed, mobile and convergent strategies • Unleash value through outsourcing of non-core network services and explore tower/NTW sharing Operational excellence • Benefit from synergies within the larger VimpelCom group • Explore alternative network structures Capital efficiency • WIND has outperformed the Italian market for the last 6 years • Opportunity for growth in low market share segments for WIND, mobile data and corporate, allowing for substantial upside • Experience and expertise in mobile data monetization • Free cash flow generating machine with potential for dividend to VimpelCom • An important element of the overall VimpelCom portfolio of assets

1 VimpelCom Financials Henk van Dalen CFO

III Portfolio strategy • Value growth • Market leadership • Disposals • Mergers Portfolio Mix Selective In market Consolidation • Optimize leverage organic growth and net debt • Free Cash flow allocation Financial Structure • Aim at least dividend per share of USD 0.80 Dividend Listing • Exploring all index inclusion options • European listing I Operational strategy • Cost leadership • Synergies • Distribution Operational Excellence II Financial strategy • EBITDA – Capex • Working Capital FCF Growth Capital Efficiency CFROI/ROIC • Capex / Revenue • Return management • License • Build out • Marketing • Corporate • Consumer • Pricing • VAS • Content • IPTV Mobile + Fixed Broadband Data 3G / 4G Segment Focus New Services Profitable Growth Value Agenda Building Blocks 2

• VimpelCom Key Financials 2009 – 2011 • Financial Value Agenda 2012 – 2014 • Financial Objectives 2012 – 2014 3

VimpelCom Revenue Development 2009 to Q3 11 Revenues Actual (USD billion) Revenues Pro forma (USD billion) Constant FX 2009 Actual Constant FX 2009 4% 2-3% Average Constant FX 2009 RUR / USD 31.72 EUR / USD 1.39 UAH / USD 7.79 EGP / USD 5.58 * Pro-forma; for reconciliation of non-GAAP financial measures, please refer to the Investor Relations part of our website 8.7 10.2 16.4 8.7 10.5 17.2 2009 2010 LTM Q3 11 21.3 22.0 22.4 2009 2010 LTM Q3 11 4

5 Pro forma EBITDA Development 2010 – YTD Q3 11 Pro forma EBITDA Development 2010 / 2011 at average constant 2009 FX in USD million 2010 Russia Ukraine & CIS Europe & NAM Asia & Africa Other 2011 Q4 YTD Q3 YTD Q3 Average Constant FX 2009 RUR / USD 31.72 EUR / USD 1.39 UAH / USD 7.79 EGP / USD 5.58 6,991 (193) 114 (60) 112 (83) 6,881 9,265

6 Financial Performance Q3 11 YOY Pro forma Q3 YoY FX and Other movements explained • FX movement of USD 320 million on net debt Appreciation of EGP towards CAD leading to an unrealized forex loss of USD 108 million on the CAD denominated receivable Depreciation of EUR towards USD leading to an unrealized forex loss of USD 178 million on the USD denominated loans in Italy and Euro denominated balances in USD functional currency countries. Depreciation of RUR towards USD leading to a forex loss of USD 36 million on the USD denominated loans in Russia • Movement in Other losses of USD 87 million mainly consist of Decrease of the value of embedded call option on Wind Italy bonds which impacted USD 108 million, due to decrease in price of underlying bonds and unfavorable interest and FX changes Revenue growth EBITDA growth Business Units Organic FX Organic FX Russia 8% 6% -8% 5% Ukraine 4% -1% -1% -1% Europe / NAM 2% 9% 1% 8% CIS 19% - 24% - Africa / Asia 5% - 13% - Total 5% 5% -1% 5% Pro forma (USD million ) Q3 11 Q3 10 Revenue 6,093 5,519 10% EBITDA 2,535 2,435 4% Depreciation/ Amortization/Other (1,269) (1,138) 12% EBIT 1,266 1,297 -2% Tax (250) (316) -21% Financial income / expenses (481) (493) -2% FX and Other (444) (24) Net result 104 460

7 Revenues USD 23,214 million EBITDA USD 9,429 million Basic figures FX sensitivities** RUB vs USD +/-10% EUR vs USD +/-10% Total Revenue (USD million) * 23,214 Average FX LTM +/- 890 +/- 780 +/- 2,270 EBITDA (USD million) * 9,429 +/- 370 +/- 270 +/- 940 Gross Debt* (USD billion) 26.0 Ultimo Q3 FX +/- 0.4 +/- 1.3 +/- 1.8 Net Debt* (USD billion) 22.3 +/- 0.4 +/- 1.2 +/- 1.5 VimpelCom LTM Q3 11; Currency sensitivities Net of VIP Amsterdam derivatives MTM change as of 30 September 2011 * Pro forma ** RUR vs USD +10% = 10% appreciation of the RUR compared to USD * * 38% 34% 8% 7% 5% 2% 4% 2% Russian RUR Euro Algerian DZD Ukrainian UAH Pakistan Rupee Bangladeshi Taka Kazakhstan Tenge USD 39% 29% 12% 9% 5% 2% 4%

8 VimpelCom LTM Q3 11; Currency sensitivities (continued) • Further foreign currency sensitivities with respect to non- functional currency denominated loans and receivables • Major exposure relates to USD loans and the CAD receivable in Egypt • Additional volatility of financial income and expense caused by mark-to- market revaluation of embedded derivatives on bonds in Wind Italy Mark-to-market driven by price on bonds, interest rate and foreign exchange movements I II USD loans CAD receivable FX sensitivities +/- 10% compared to functional currency RUR -/- 700 -/+ 70 EUR -/- 750 -/+ 75 EGP -/- 2,600 -/+ 260 EGP + 1,330 +/- 140

9 Simplified legal / financing structure per 30 September 2011 Ring fenced Legal structure External Debt Significant intercompany financing Note: rounded figures * including bank deposits and MTM of derivatives at VIP VimpelCom Finance (Bermuda) Ltd. OJSC VimpelCom Total OJSC Group USD 8.8 bn VimpelCom Ltd. VimpelCom Amsterdam B.V. VimpelCom Holdings B.V. PJSC Kyivstar Total VIP USD 2.2 bn USD 2.7 bn shareholder loan EUR 0.4bn USD 2.7bn VimpelCom Amsterdam Finance B.V. Total gross debt VimpelCom Group VIP USD 2.2 bn OJSC Group USD 8.8 bn WIND Group USD 13.7 bn OTH Group USD 1.1 bn Other USD 0.2 bn USD 26.0 bn Total cash* USD 3.7 bn (incl. bank deposit) PIK notes USD 1.3 bn Senior bank loan USD 4.7 bn Annuity loan USD 0.3 bn HY notes 2017 USD 3.7 bn SSN 2018 USD 3.7 bn Weather Capital S.a.r.l. Weather Capital Special Purpose I S.A. Orascom Telecom Holding S.A.E. Total OTH Group USD 1.1 bn WIND Telecom S.p.A. Wind Acquisition Holdings Finance S.p.A. WIND Acquisition Holdings Finance SA WIND Telecomunicazioni S.p.A. WIND Acquisition Finance SA

10 Composition Debt Structure Elements per Ultimo Q3 11 Maturity schedule (USD million) Ratios Other VimpelCom / OJSC WIND Debt and Interest composition Interest charge Gross Debt 50% 30% 17% 3% 52% 28% 17% 3% EUR USD RUR Other EUR RUR USD Other Total Bonds 7.9 1.3 7.2 0.1 16.5 Term loan 4.7 3.0 0.3 0.6 8.6 Other 0.3 0.2 0.4 0.0 0.9 Gross Total 12.9 4.5 7.9 0.7 26.0 Weigthed interest 9.0% 9.3% 7.2% 13.0% 8.6% 557 1,243 2,239 1,586 1,696 2,066 9,111 4,913 0 0 1,000 1,500 Q4 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Currency ultimo Q3 11 VimpelCom Ltd (excl. Italy) Wind Italy Total Gross Debt/ LTM Q3 EBITDA 1.95 4.77 2.78 Gross Debt/ LTM Q3 EBITDA at USD +10% 1.99 5.08 2.90 Gross Debt/ LTM Q3 EBITDAat USD -10% 1.91 4.45 2.66

11 Percentage of Service revenue Elements Development YOY Service Revenue 100% Revenues excluding Sales of equipment and Other Income Usage related costs 26% Interconnection, Roaming, Termination, Leased Lines, Content, Access fees Commercial opex 10% Customer acquisition, Customer Retention, Advertising Technical & IT opex 9% Site rent, Maintenance, License Fees, Utilities, IT Other SG&A opex 7% Third party and outsourcing, Non income taxes, Other rent, Other HR Costs 7% Salaries & benefits own employees DA 22% Depreciation, Amortization EBIT 19% Operating income Cost Structure Group 2011 LTM Q3 USD 23.2 billion Revenue

12 Capex Basics 2008 – 2011 YTD VimpelCom Capex excluding licenses Pro forma (USD billion) 5.2 3.0 4.0 2.9 30% 24% 24% 22% 22% 21% 14% 18% 17% 2008 2009 2010 YTD Q3 11 Capex / Revenue % (EBITDA – Capex)/Revenue % DA / Revenue %

13 VimpelCom (VIP) Listing and Index Inclusion • Current situation Headquarters in Amsterdam Incorporation in Bermuda 18% free float 15 years NYSE listing VimpelCom (VIP) is in 10 indexes • Actions Examining all index inclusion options Switch to IFRS reporting Explore further possibilities for European listing Aiming for H1 of 2012 conclusion VIP included in the following Indexes S&P/IFC Investable Russia Price Index S&P/IFC Investable Eastern Europe Price Index S&P/IFC Investable Europe Price Index S&P/IFC Investable Mid East & Africa Price Index S&P/IFC Investable Composite DJ Emerging Telecom 30 Index DJ Emerging Sector 100 Index S&P Emerging BMI BRIC S&P Global BMI S&P Emerging BMI

14 • VimpelCom Key Financials 2009 – 2011 • Financial Value Agenda 2012 – 2014 • Financial Objectives 2012 – 2014

15 Contribution areas of finance function 1. Clear strategy, delivering value to customers and shareholders • Dynamic reviews and updates 2. Value creation • CFROI: Cash, Funding, Returns, Operations, Investments 3. Risk management & Compliance • RICIC: Risk, Internal Control, Integrity, Compliance 4. Talent / Career development • Top competences 5. Financial standing • Credit rating; ratios, access to funding 1 2 3 4 5

2012 Dynamic Performance Review Performance Driven Business Steering Commercial Financial Technology KPI set based on “VimpelCom Value Map” Commercial, Technical, Financial Financial requirements, Balance Sheet, P&L and Cash Flow Value Agenda 16

17 Value creation CFROI Cash Returns Operations Investment Funding

18 Operate within Cash Flow VI III Taxes paid, Net Interest paid I Cash from operations I I IV Dividend paid V Cash VII Operating cash Minus Minus Minus Interest (Net) Debt Ratios Debt redemption / M&A + Cash Capex Disposal proceeds (USD billion) LTM Q3 Revenue 23.2 EBITDA 9.4 Interest paid -2.0 Taxes paid -0.9 Trade WC / Others 0.1 Net cash from operating activities 6.7 Capex (18% of revenue) -4.2 Dividend -1.4 Free Cash 1.0 Cash “normalized” today Cash model

19 New selection and terms policy Process aim Ensure purchasing power is leveraged and policies in place Trigger date for due date is later of invoice date, invoice receipt date and goods receipt date Optimize (maximize) terms of trade Ensure payments made in line with contractual obligation and policy Key process date Order Date Goods Receipt Date Due Date Invoice (receipt) date Procurement Order to invoice control Terms of trade Payment processing Cash paid Working Capital Focus Average working capital focus, pro forma (in millions of USD) Q2 11 % of Rev. LTM Q2 Q3 11 % of Rev LTM Q3 Inventory 316 1% 251 1% Accounts receivable 2,726 12% 2,608 11% Accounts payable other (3,302) -15% (2,915) -13% Other current assets * 1,098 5% 1,034 4% Other current liabilities ** (3,325) -15% (3,620) -16% Taxes receivable 1,122 5% 1,147 5% Accounts payable for Long Lived Assets (848) -4% (874) -4% (2,213) -10% (2,368) -10% Composition Review payment terms – purchase to pay (“PTP”) process Note: Working Capital defined as current assets minus current liabilities excluding assets held for sale and liabilities associated to assets held for sale * excl. cash, deposits, assets held for sale and aqcuisition related receivables ** excl. liabilities held for sale and short-term debt Working Capital

20 Objectives 1. Group (intercompany) funding structure 2. Group legal/tax structure 3. Internal charges 4. Upstream cash 5. Country balances 6. Legal entity governance 7. Quarterly reconciliations Legal Accounting Fiscal Treasury Business Value Management reporting Fiscal Statutory B-FLAT Optimisation Drives Cash Efficiency

21 VimpelCom Optimize Intercompany Capital Structure Loss makers Loss makers Loss makers Loss makers Profit makers Profit makers Profit makers Profit makers Maximum dividend without delays Increase IC-leverage Maximum capital contributions New equity to fund losses ´unless´ Dividend to shareholders FINCO Dividend to shareholders External funding if needed

22 Tax optimisation Old VIP YTD Sept 2010 New VIP YTD Sept 2011 New VIP Q2 & Q3 2011 Statutory Rate 20% 25% 25% Above Statutory 11% 11% 31% Unrecognized losses 2% 11% 18% Provision for Dividend WHT 4% 7% 15% Provisions and other 5% -7% -2% Effective Tax Rate 31% 36% 56% ETR normalized PBT (excl non-tax FX-results) 31% 29% 34% Focus in ETR on: • Unrecognized losses • Dividend withholding tax on dividends from Russia, Ukraine (US GAAP) • Non-deductible interest in Russia and Italy ETR + Cash tax down : • Intercompany restructuring to mitigate withholding taxes optimize repatriation of funds • Restructuring of (inter- company) financing • Increase interest deductibility

23 Diversified funding structure secured • Local Bonds and Eurobonds • Syndicated Facilities • ECA covered Facilities • Bilateral (local) Bank Facilities • Committed revolving credit facilities • Intercompany funding Balanced Source Mix Maturities long Flexible Funding Secured

24 Financial Standing Maintain BB rating shortterm Stabilize operating performance Secure cash flow generation Gross debt to be around 3 times EBITDA maximum Grow to BB+ / BBB- Optimize operating performance Increase cash flow generation Deleveraging strategy • Secure Flexible access to capital markets • Lower cost of funding accelerates cash flow generation and faster deleverage Moving towards < 2 times Net Debt to EBITDA by end 2014 Investment Grade

25 Financial Standing (continued) • Cost of debt optimization opportunities Optimize interest tax deductibility Restructuring expensive debt Financial synergies Local funding as natural currencies hedge • Additional Free Cash Flows upstreaming from Subsidiaries other than OJSC and Kyivstar • Further lower cost of funding by improving long/short term, senior/junior, fixed/floating debt mix • Capital allocation principles Stay within cash flows generated Capex to support organic growth Dividends pay-out Debt redemption opportunities Selected in Market M&A USD 350 – 500 mln

26 Cost and Capex Traffic dependent Competitor behavior dependent Scale Opportunity Operational Excellence 2012 - 2014 (USD billion) LTM Q3 Usage related costs 6.0 Total Opex 7.8 Commercial opex 2.3 Technical & TT opex 2.1 Other SG&A 1.7 HR costs 1.7 Capex 4.8 Total Cash 18.6 Synergies Preliminary perspective • Usage > > USD 200 million savings • Opex > > USD 400 million savings • Capex < 15% on Revenu by end 2014 (excl. licenses) Synergy Categories Roaming Procurement Consolidation Group Products and Services New Revenue sources by leveraging scale Other Shared Services Developing Best Practices Knowledge Sharing 1 2 3 4 5 6

27 Capital Return Improved (USD million) Book value Gross value Tangible 14,326 20,928 Other Intangibles * 11,082 14,758 Goodwill * 17,171 17,171 Working Capital ** -3,131 -3,131 Total 39,448 49,726 CFROI = ROIC = EBITDA – Taxes paid (25% on EBIT) – Economic depreciation Gross Asset Base (incl goodwill) Capital Invested per Ultimo Q3 11 EBIT LTM Actual Invested Capital *** (incl goodwill) * Goodwill and Other Intangibles are subject to change, due to valuation of assets acquired in business combinations still in progress ** Excluding cash *** Net book value of capital invested excluding working capital WACC 9.3%

28 Supervisory Board Statutory / Fiduciary obligations Group Strategy Development Group Operating Companies COSO Enterprise Risk Management – Integrated Framework Group HR Group Legal Group Public Affairs Disclosure management Group Business Control Integrity / Ethics Group Risk Management & Internal Control Compliance Audit Committees VimpelCom Other Supervisory Board Committees Audit Committee Supervisory Board Internal Audit External Audit Group Accounting / Reporting Group Tax Group Treasury GEB / Board of Management GEB / Board of Management Risk management, Internal control, Integrity Compliance

29 • VimpelCom Key Financials 2009 – 2011 • Financial Value Agenda 2012 – 2014 • Financial Objectives 2012 – 2014

30 Financial Performance Objectives 2012 – 2014 Key indicators Revenue EBITDA Capex / Revenue (excl. licences) Below 15% By end of 2014 Leverage Net Debt / EBITDA < 2 By end of 2014 Operational excellence Cost savings / cash improvement Revenue and EBITDA objectives planned to be communicated early 2012 Currently being developed as part of business review process

31 Cash Returns to Shareholders Objectives Dividend guideline* • Intention to pay a dividend that develops substantially in line with the development of operational performance • Barring unforeseen circumstances, the Company aims to pay out a significant part of its annual operating free cash flow** to its shareholders in the form of dividends • Precise amount and timing of dividends for a particular year will be approved by the Supervisory Board, subject to certain constraints and guidelines • Assuming not more than 1,628 million common shares issued and outstanding Aim to pay at least USD 0.80 per common share 2011 – 2014 Dividends paid (USD million) Dividend Paid Dividend Announced * For a full dividend guideline please refer to www.vimpelcom.com ** Operating free cash flow = net cash from operating activities minus capital expenditures 494 733 600 323 588

32 Conclusion • Financially in good shape • Significant initiatives started • Substantial cash flow growth potential

1 Closing Remarks Jo Lunder CEO

2 Conclusions • VimpelCom is a well balanced and diversified global telecom operator • Attractive footprint to benefit from mobile data growth • Large underpenetrated markets with large potential • Attractive cash returns to shareholders • Execution on the Value Agenda Profitable Growth Operational Excellence Capital Efficiency Portfolio Contribution Analysis

3 Q&A With Group Executive Board and Heads of Business Units

4 www.vimpelcom.com For further information please contact Investor Relations Claude Debussylaan 15 1082 MC Amsterdam, The Netherlands T: +31 20 797 7234 E: Investor_Relations@vimpelcom.com

Reconciliation of EBITDA and EBIT of VimpelCom to pro-forma combined income statement

USD mln — 1Q 10		2Q 10		3Q 10		4Q 10		1Q 11		2Q 11		3Q11		3Q11 LTM*
Unaudited pro forma
EBITDA	2,215		2,368		2,435		2,266		2,257		2,371		2,535		9,429
Adjustment for certain non-operating items	2		3		19		4		2		8		5		19
Depreciation	(751	)	(722	)	(742	)	(917	)	(839	)	(892	)	(930	)	(3,579	)
Amortization	(386	)	(379	)	(387	)	(366	)	(358	)	(342	)	(339	)	(1,405	)
Impairment loss	(6	)	(9	)	(9	)	(112	)	23		—		—		(88	)
Operating income	1,073		1,260		1,316		875		1,085		1,145		1,271		4,376
Adjustment for certain non-operating items	(2	)	(3	)	(19	)	(4	)	(2	)	(8	)	(5	)	(19	)
EBIT	1,072		1,257		1,297		871		1,083		1,137		1,266		4,357
Financial income and expenses	(580	)	(448	)	(493	)	(470	)	(485	)	(486	)	(481	)	(1,921	)
- including interest income	29		66		22		12		36		38		37		124
- including interest expense	(609	)	(514	)	(516	)	(482	)	(520	)	(524	)	(518	)	(2,045	)
Net foreign exchange (loss)/gain and others	77		(493	)	(24	)	(188	)	197		(120	)	(444	)	(554	)
- including net foreign exchange (loss)/gain	100		(299	)	121		(11	)	209		1		(200	)	(1	)
- including equity in net (loss)/gain of associates	(38	)	(22	)	(16	)	(11	)	27		(14	)	(16	)	(15	)
- including other (expense)/income, net	12		(175	)	(149	)	(170	)	(41	)	(114	)	(232	)	(557	)
- Including adjustment for certain non-operating items	2		3		19		4		2		8		5		19
EBT	568		316		779		214		795		531		341		1,882
Income tax expense	(255	)	(170	)	(316	)	(309	)	(191	)	(226	)	(250	)	(977	)
Profit (loss) from discontinued operations	—		—		—		—		—		—		12		12
Net income	312		146		463		(95	)	604		305		104		917
Net (loss)/income attributable to the noncontrolling interest	31		(73	)	3		(43	)	40		(7	)	(1	)	(10	)
Net Income attributable to VimpelCom Ltd.	283		219		460		(52	)	564		312		104		927

• LTM stands for “last twelve months” to reporting date

Reconciliation of VimpelCom Consolidated Net Debt

USD mln
Net debt	22,261
Cash and cash equivalents	3,443
Long - term and short-term deposits	153
Fair value hedge	147
Total debt,	26,004
incl. Long - term debt	24,404
incl. Short-term debt	1,600