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VimpelCom Delivers Profitable Growth And Strong Increase In Cash Flow In 4Q12 And FY12



VimpelCom Delivers Profitable Growth And Strong Increase In Cash Flow In 4Q12
                                   And FY12

PR Newswire

AMSTERDAM, March 6, 2013

AMSTERDAM, March 6, 2013 /PRNewswire/ --

KEY RESULTS AND DEVELOPMENTS IN 2012^*

Q4

  o Revenues of USD 6.0 billion; organic^1) growth of 3% YoY
  o EBITDA of USD 2.4 billion, up 13% YoY organically
  o EBITDA margin increased 3.3 p.p. YoY to 41.1%
  o Total mobile subscriber base grew 5% YoY to 214 million
  o Net income increased to USD 801 million
  o Net Cash from Operating Activities up 24% YoY to USD 2.3 billion

FY

  o Revenues of USD 23.1 billion; organic growth of 4% YoY
  o EBITDA of USD 9.8 billion, up 8% YoY organically
  o EBITDA margin increased 1.8 p.p. YoY to 42.4%
  o Net income increased to USD 2.1 billion
  o Net Cash from Operating Activities up 19% YoY to USD 7.3 billion

"VimpelCom Ltd" ("VimpelCom", "Company" or "Group") (NYSE: VIP), a leading
global provider of telecommunications services, today announced operating and
financial results for the quarter and full year ended December 31, 2012.

JO LUNDER, CHIEF EXECUTIVE OFFICER COMMENTS:

"I am very pleased to report strong performances from all of our Business
Units in the fourth quarter of 2012. Russia delivered a 4% increase in revenue
year-on-year with mobile ARPU up 5%, stimulated by usage and Value Added
Services growth with mobile data revenues up 37%. EBITDA in Russia increased
15% as a result of the revenue improvement and strong execution on our
operational excellence programs. In Italy, we have again outperformed the
market, strengthening our market position in both the mobile and fixed-line
segments. Excluding the impact of mobile termination rate cuts, mobile service
revenues were up 2% year-on-year, with mobile internet revenues growing 37%.
In Africa & Asia, we experienced strong increases in subscribers leading to
organic revenue growth of 11%. We have made good progress on the transition to
bundled tariff plans in Ukraine, resulting in a return to growth, while at the
same time increased our subscriber numbers by 5%. Finally, our CIS business
continued to deliver double digit revenue and EBITDA growth. The Group EBITDA
margin in 4Q12 rose to 41.1%. Our 2012 results, with clear operational
improvements, demonstrate our ability to deliver on our strategy and
objectives. In 2013 we expect to deliver results in line with our enhanced
Value Agenda objectives for 2013-2015."

CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS (FY11 IS PRO FORMA)*

USD mln           4Q12  4Q11  Reported Organic  FY12   FY11   Reported Organic
                              YoY      YoY                    YoY      YoY
Net operating     5,950 5,889 1%       +3%      23,061 23,477 -2%      +4%
revenues
EBITDA            2,446 2,227 10%      +13%     9,768  9,525  3%       +8%
EBITDA margin     41.1% 37.8% -                 42.4%  40.6%  -
EBIT              709   214   241%              4,171  3,175  31%
Net income        801   (381) n.m.              2,145  525    309%
Capital           1,631 3,734 -56%              4,120  6,683  -38%
expenditures**
Net cash from
operating         2,301 1,858 24%               7,257  -      -
activities
Net debt / LTM    2.2   2.6   -                 2.2    2.6    -
EBITDA
Total mobile
subscribers       214   204   5%                214    204    5%
(millions)***

*          Comparative FY11 figures are Pro forma - for pro forma definition
see next page. ^
**       Including licenses of USD 1.8 billion in 4Q11 & FY11 and USD 0.1
billion in FY12
***     Following the sale of Vietnam the subscriber numbers for 4Q12 exclude
the Vietnam subscriber numbers while 4Q11 included 2 million subs in Vietnam
For all other definitions see Attachment E.

1)  Organic revenue and EBITDA growth are non-GAAP financial measures that
exclude the effect of foreign currency movements and certain items like
liquidations and disposals. A reconciliation of organic to reported Revenue
and EBITDA growth can be found on page 2. For more information please see the
definition of Organic growth Revenue and EBITDA in Attachment E.

CONSOLIDATED FINANCIAL AND OPERATING HIGHLIGHTS (ACTUAL REPORTED)

USD mln                                    FY12   FY11   Reported
                                                         YoY
Net operating revenues                     23,061 20,262 14%
EBITDA                                     9,768  8,256  18%
EBITDA margin                              42.4%  40.7%  -
EBIT                                       4,171  2,854  46%
Net income attributable to VimpelCom Ltd.  2,145  543    295%
Capital expenditures                       4,120  6,349  -35%
Net cash from operating activities         7,257  6,106  19%
Net debt / LTM EBITDA                      2.2    2.6    -
Total mobile subscribers (millions)        214    204    5%

ORGANIC GROWTH REVENUE AND EBITDA (FY11 IS PRO FORMA)

         4Q12 versus 4Q11                                 FY12 versus FY11
USD mln  Revenue                 EBITDA                   Revenue                 EBITDA
Business         FX and                  FX and                   FX and                  FX and
Units    Organic        Reported Organic        Reported  Organic        Reported Organic        Reported
                 others                  others                   others                  Others
Russia   4%      0%     4%       15%     1%     16%       7%      -6%    1%       13%     -6%    7%
Europe & -4%     -4%    -8%      -4%     -2%    -6%       -3%     -7%    -10%     -3%     -7%    -10%
NA
Africa & 11%     -9%    2%       36%     -3%    33%       9%      -9%    0%       15%     -4%    11%
Asia
Ukraine  4%      0%     4%       9%      0%     9%        2%      0%     2%       -1%     -1%    -2%
CIS      21%     -5%    16%      45%     -8%    37%       15%     -5%    10%      22%     -6%    16%
Total    3%      -2%    1%       13%     -3%    10%       4%      -6%    -2%      8%      -5%    3%

 

PRESENTATION OF FINANCIAL RESULTS

Actual twelve months 2011 results reflect the consolidation of Wind Telecom as
of April 15, 2011. The Company believes pro forma of FY11 results versus FY12
actual reported results provide the most meaningful comparison of financial
performance. For further details about the presentation of the adjustments and
assumptions of our pro forma results, please refer to VimpelCom's press
release issued on August 18, 2011 and May 14, 2012 both which are available on
the Company's website.

 

The pro forma full year 2011 information presented in this press release
reflects what the Company's results of operations would have looked like had
the Company's transactions with Wind Telecom occurred on January 1, 2011.

 

VimpelCom Ltd. consolidated results presented in this earnings release are
based on IFRS and have not been audited. The full year 2012 audited financial
results under IFRS will be published when the Company files its annual report
on Form 20-F for the year ended December 31, 2012.

 

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

STRATEGIC UPDATE

  o Enhanced Value Agenda for 2013-2015 announced highlighting medium-term
    objectives
  o Successful issuance of USD 2.0 billion Eurobonds for debt refinancing
  o AGM elected new Supervisory Board
  o Acquisition of 0.1% in Euroset, increasing total stake to 50.0%
  o Paid final dividend 2011 and interim dividend 2012 of in total USD 1.3
    billion 

In January, VimpelCom hosted its second annual Analyst & Investor Day in
London, where the Company presented its enhanced business strategy, the Value
Agenda 2013-2015. This Value Agenda, which is focused on increasing Net Cash
from Operating Activities, has four main pillars: Profitable Growth, Customer
Excellence, Operational Excellence and Capital Efficiency.

VimpelCom's objectives* for the period 2013 - 2015 are:

  o Revenue and EBITDA CAGR of around mid-single digit;
  o Net Debt/EBITDA below 2x in 2015; and
  o CAPEX/Revenues, excl. licenses, below 15% in 2015.

As a result of the execution of the Value Agenda the Company indicated its
intention to have annual cash flow improvements of USD 2 billion from
operations and of between USD 0.6 billion and USD 0.9 billion from finance
optimization by the end of 2015.

In December 2012, Altimo delivered a notice to VimpelCom that it intends to
convert 128,532,000 Convertible Preferred Shares into Common Shares at a ratio
of one Convertible Preferred Share for one Common Share. Altimo set the
conversion date for April 16, 2013 and the conversion premium to be paid by
Altimo to the Company upon conversion is USD 10.835 per Convertible Preferred
Share. Based on this conversion premium, the Company will receive
approximately USD 1.4 billion from Altimo for the conversion. Altimo's voting
percentage will remain 47.9%, while its economic interest in the Company will
increase from 52.7% to 56.2%.

VimpelCom held its Annual General Meeting of Shareholders (AGM) in Amsterdam
in December 2012. The AGM approved that the Supervisory Board will continue to
consist of nine directors, four nominated by Altimo, three nominated by
Telenor and two independent directors.  In addition, the Supervisory Board
unanimously elected Alexey Reznikovich as its Chairman. As announced
yesterday, the Company will have its AGM 2013 on April 24, 2013.

In December 2012, VimpelCom increased its stake in Russian mobile retailer
Euroset to 50.0% by acquiring 0.1% of the shares of Euroset. As a result,
VimpelCom and Lefbord, a company owned by Megafon and Garsdale Services
Investment, have equal economic and governance rights in Euroset.  VimpelCom
will continue to account for Euroset using the equity method.

Also in December 2012, VimpelCom signed a USD 500 million bilateral credit
facility with China Development Bank for financing equipment and services from
Huawei. The Facility has a tenor of 8 years and is to date undrawn. In
February 2013, VimpelCom completed approximately USD 2 billion in debt
refinancing, by issuing 6-year USD 600 million 5.20% guaranteed notes, 10-year
USD 1.0 billion 5.95% guaranteed notes and 5-year RUB 12.0 billion 9.0%
guaranteed notes. The proceeds will be used for the repayment of maturing debt
in VimpelCom and general corporate purposes. The coupon on the USD notes was
the lowest coupon in VimpelCom's history. Additionally, the RUB denominated
Eurobonds represent the first such issuance by a non-financial services or
non-state-owned company. Following the recent debt refinancing,  VimpelCom has
secured its refinancing requirements into 2014.

The Company announced a final dividend 2011 of USD 0.35 per common share and
an interim dividend 2012 of USD 0.45 per common share in December 2012, which
has been paid in January 2013 for a total amount of USD 1.3 billion. The
dividend guideline of USD 0.80 per common share, assuming 1,628 million common
shares are issued and outstanding, is currently under review following the
aforementioned intended conversion of Convertible Preferred Shares by Altimo.
The Company expects a decision on the dividend policy by the Supervisory Board
in 2Q13. The Company also expects to announce the final dividend 2012 and a
possible extra-ordinary dividend related to proceeds of a conversion in 2Q13.

The Company recently announced the appointment of Ziad Shatara to the position
of CEO of banglalink in Bangladesh and of Taras Parkhomenko as CEO of
VimpelCom's operating company in Kazakhstan.

VimpelCom's 51.9%-owned subsidiary Orascom Telecom Holding ("OTH") took steps
to increase its stake in WIND Mobile in Canada to 100%, subject to Canadian
regulatory approvals.

Finally, negotiations with the Algerian Government are still progressing and
the Company aims to reach a mutually beneficial resolution.

* The above objectives assume constant currency exchange rates, no major
regulatory changes, current asset portfolio mix and a stable macroeconomic
environment.

VIMPELCOM GROUP – FINANCIAL AND OPERATING RESULTS 4Q12

  o Organic revenue growth of 3% YoY; revenues of USD 6.0 billion
  o EBITDA growth of 13% YoY on an organic basis, reaching USD 2.4 billion
  o Total mobile subscriber base grew by 5% YoY to 214 million
  o Net cash from operating activities increased 24% YoY to USD 2.3 billion
  o CAPEX of USD 1.6 billion
  o Net debt / LTM EBITDA was 2.2 at end 4Q12

OPERATING PERFORMANCE OVERVIEW 4Q12

4Q12 results were strong on an organic basis, but in USD terms the results
were significantly impacted by the YoY appreciation of the USD against the
local currencies in most of VimpelCom´s operating businesses. The organic
development is highlighted below.

The total mobile subscriber base increased 5% YoY to 214 million by the end of
the fourth quarter. The largest absolute contribution came from accelerated
growth in subscribers in the Africa & Asia Business Unit and a large increase
in subscribers in the CIS Business Unit from growth in Uzbekistan. The Company
also achieved solid growth in fixed and mobile broadband subscribers in
Russia, Italy and Ukraine.

In Russia, the Company continued the positive trend of the first nine months
of the year, delivering organic revenue growth of 4% YoY. Mobile broadband
subscribers in Russia increased 5% YoY to 2.7 million and fixed broadband
subscribers grew 15% YoY to 2.4 million.

In Italy, the Company continued to outperform the broader Italian, highly
competitive telecom market in the fourth quarter, in a highly competitive
environment. VimpelCom strengthened its market position in Italy in both
mobile and fixed-line, increasing its market  share in both segments. The
fixed broadband subscriber base increased 4% YoY to more than 2.2 million.
Mobile broadband consumer subscribers grew 24% YoY.

In the Africa & Asia Business Unit, the Company exceeded the 85 million
subscribers mark, an increase of 8% YoY,  through strong subscriber growth in
most of its operations. Solid performance across the main operations, Algeria,
Pakistan and Bangladesh, led to organic revenue growth of 11% YoY.

The Ukraine Business Unit continued to solidify its market position in the
mobile segment through the ongoing transition to bundled tariff plans. The
transition is showing good results with mobile total operating revenues
returning to growth. Mobile subscribers increased by 5% YoY to 26.0 million.

The CIS Business Unit delivered double digit organic revenue growth, mainly
resulting from a temporary decrease in competition in Uzbekistan. The Company
continues to face particularly strong competition in Kazakhstan, but also in
Armenia and Tajikistan.

OPERATING FINANCIALS PER BUSINESS UNIT (FY11 IS PRO FORMA)

                              Reported Organic                Reported Organic
USD mln           4Q12  4Q11  YoY               FY12   FY11   YoY
                                       YoY                             YoY 
Net operating     5,950 5,889 1%       3%       23,061 23,477 -2%      4%
revenues
       of which:
       BU Russia  2,371 2,274 4%       4%       9,190  9,064  1%       7%
       BU Europe
       & North    1,778 1,924 -8%      -4%      6,982  7,771  -10%     -3%
       America
       BU Africa  937   922   2%       11%      3,721  3,719  0%       9%
       & Asia
       BU Ukraine 432   417   4%       4%       1,676  1,641  2%       2%
       BU CIS     488   419   16%      21%      1,755  1,589  10%      15%
       Other      (56)  (67)  -        -        (263)  (307)  -        -
EBITDA            2,446 2,227 10%      13%      9,768  9,525  3%       8%
       of which:
       BU Russia  978   844   16%      15%      3,878  3,641  7%       13%
       BU Europe
       & North    674   718   -6%      -4%      2,658  2,952  -10%     -3%
       America
       BU Africa  426   321   33%      36%      1,741  1,566  11%      15%
       & Asia
       BU Ukraine 227   209   9%       9%       859    873    -2%      -1%
       BU CIS     235   171   37%      45%      813    703    16%      22%
       Other      (94)  (36)  -        -        (181)  (210)  -        -
EBITDA margin     41.1% 37.8% -        -        42.4%  40.6%  -        -
CAPEX             1,631 3,734 -56%     -        4,120  6,683  -38%     -

FINANCIAL PERFORMANCE OVERVIEW 4Q12

Total operating revenues in the fourth quarter of 2012 increased by 1% YoY
impacted by unfavorable currency movements. Organic revenue growth was 3%,
with solid performance across most Business Units.

EBITDA increased 10% YoY, also impacted by unfavorable currency movements.
Excluding these forex effects, EBITDA increased 13% compared to 4Q11. In
addition to the focus on operational excellence throughout the businesses,
EBITDA in 4Q11 included certain one-off charges, including provisions for HR
costs in Russia, Africa & Asia and Ukraine and inventory write-offs in Russia.
In addition, 4Q11 included a provision in Africa & Asia  for a corporate
contingent liability and costs associated with the demerger of OTMT. These
combined effects resulted in a more favorable comparison for 4Q12.

Strong  EBITDA organic growth YoY was seen in the Russia, Africa & Asia,
Ukraine and CIS Business Units, up 15%, 36%, 9% and 45%, respectively. The
strong increase in Africa & Asia is also driven by the doubling of the EBITDA
in Bangladesh as a result of significantly lower commercial opex in 4Q12,
while in 4Q11 banglalink recorded very high customer acquisition costs. Italy
showed an EBITDA decline of 4% YoY in local currency, mainly due to the MTR
cut in July 2012. Net of the MTR cut, EBITDA would have increased by 2% YoY,
supported by cost efficiency measures.

EBIT in 4Q12 grew by 231% compared to 4Q11. The 4Q11 results were negatively
impacted by impairments for a total of USD 527 million and the impact of the
Purchase-Price Allocation related to the acquisition of Wind Telecom in
addition to the one-offs mentioned above. EBIT in 4Q12 was positively affected
by the declining amortization schedule applied to intangible assets as part of
the Wind Telecom acquisition. EBIT in 4Q12 was also impacted by negative forex
and an impairment of OTH's shareholder loan to WIND Mobile Canada of USD 328
million, following a detailed business plan review.

Excluding these combined effects for 4Q11 and 4Q12, EBIT would have grown by
24%. 

Profit before tax increased to USD 764 million, compared to a loss of USD 559
million in the same period a year ago.  This increase was primarily the result
of a substantially higher EBIT and a Euroset fair value adjustment of USD 606
million, due to IFRS requirements, as a result of the acquisition of the
additional 0.1%. Net foreign exchange loss was USD 30 million in 4Q12, while
in 4Q11 there was a loss of USD 119 million.

Net income increased to USD 801 million compared to a net loss in 4Q11 of USD
381 million. The increase is mainly the result of the aforementioned increase
in Profit before tax.

CAPEX was USD 1,631 million with investments in the further roll out of the
mobile networks in Russia, Bangladesh and the CIS. In Italy, Wind continued to
invest in the roll-out of HSPA+ and in backbone capacity to support the growth
in data.

                                            Actual
USD mln                                     4Q12  4Q11  YoY
Total operating revenues                    5,950 5,889 1%
EBITDA                                      2,446 2,227 10%
EBITDA margin                               41.1% 37.8% -
EBIT                                        709   214   231%
Financial income and expenses               (484) (467) 4%
Net foreign exchange (loss)/gain and others 539   (306) n.m
Profit before tax                           764   (559) n.m
Income tax expense                          (195) (101) 93%
Profit for the period                       569   (660) n.m
Net income                                  801   (381) n.m
Capital expenditures                        1,631 3,734 -56%

STATEMENT OF FINANCIAL POSITION & CASH FLOW (ACTUAL)

USD mln                           4Q12      3Q12    QoQ   FY12    FY11    YoY
Total assets                      55,360    53,490  3%    55,360  54,039  2%
Shareholders' equity              14,869    14,779  1%    14,869  14,037  6%
Gross debt                        26,987    26,637  1%    26,987  26,733  1%
Net debt                             21,971 22,681  -3%   21,971  24,230  -9%
                                     4Q12   4Q11    YoY   FY12    FY11    YoY
Net cash from operating activities   2,301  1,858   24%   7,257   6,106   19%
Net cash used (in)/from investing    (515)  (3,363) -85%  (4,008) (6,945) -42%
activities
Net cash used (in)/provided          (125)  691     n.m.  (587)   2,583   n.m.
financing activities

Total assets in the  quarter increased by 3% to USD 55.4 billion, primarily as
a result of cash generation, investments in fixed assets and the positive
impact of currency translation YoY. Gross debt increased marginally in the
quarter to USD 27.0 billion, mainly due to foreign exchange movements. Net
debt decreased to USD 22.0 billion, leading to a net debt to LTM EBITDA of
2.2x at the end of the fourth quarter.

Net cash from operating activities increased 24% YoY to USD 2.3 billion
positively impacted by the increase in EBITDA and improvement in working
capital, partially offset by higher  tax payments compared to the same period
last year. The decrease in net cash used in investing activities compared to
3Q12 was mainly impacted by lower cash out for investments in property,
equipment and intangible assets in 2012. The decrease in net cash used in
financing activities in 4Q12 compared to 4Q11 was mainly the result of the net
repayment of debt. Net cash from operating activities in FY12 is USD 7.3
billion, or 19% higher than in FY11.

NON-CASH ITEMS IN 4Q12 AND FY12 IMPAIRMENTS

On a regular basis the Company performs an impairment test per cash generating
unit. Following a detailed business plan review of Wind Mobile in Canada, the
Company has recorded an impairment of USD 328 million.

REVALUATIONS

As a result of the acquisition of the additional 0.1% in Euroset, the Company
had to adjust the fair value of the previously held interest in Euroset by USD
606 million due to IFRS requirements.

VIMPELCOM GROUP – FINANCIAL RESULTS FULL YEAR 2012

  o Revenues reached USD 23.1 billion; organic growth of 4% YoY
  o EBITDA of USD 9.8 billion, up 8% YoY organically
  o EBITDA margin increased 1.8 p.p. YoY to 42.4%
  o Net Income increased to USD 2.1 billion
  o CAPEX excl. licenses of USD 4.0 billion leading to CAPEX/LTM Revenues of
    17%
  o Net cash from operating activities increased by 19% to USD 7.3 billion

FULL YEAR 2012

On a pro forma basis, total operating revenues in 2012 decreased by 2% YoY.
Overall organic revenue growth was 4%, with strong performance across all
Business Units. In Russia, revenues increased by 1% in USD terms and 7% in
local currency. In Italy, revenues in USD decreased by 10% and decreased in
local currency by 3%, as a result of the sharp MTR cuts. Excluding MTR effect,
net operating revenues improved by 5%.  The Africa & Asia Business Unit
reported organic revenue growth of 9% and had stable revenues in USD terms,
while the Ukraine Business Unit delivered growth of 2% in both USD and in
local currency. Lastly, the CIS Business Unit continued to achieve strong
performance with a revenue increase of 15% organically, primarily as a result
of the network closure of a competitor by the Uzbek authorities.

On a pro forma basis, EBITDA increased by 3% YoY. Strong organic EBITDA growth
of 13% was seen in the Russia Business Unit, while EBITDA growth in the Africa
& Asia and CIS Business Units were up 15% and 22%, respectively. In the Europe
& North America Business Unit, EBITDA decreased 10% in USD terms and declined
by 3% in local currency, mainly due to the impact of the MTR cuts. The Ukraine
Business Unit EBITDA decreased by 1% in local currency and by 2% in USD terms.

CAPEX excluding licenses stood at USD 4.0 billion, with investments in the
further roll out of the mobile networks in Russia, Bangladesh, Pakistan and
the CIS. The CAPEX/LTM Revenues excluding licenses for FY12 is 17%.

The Company expects FY13 CAPEX, excluding licenses, to be approximately 21% of
revenue.

                                                           

                                    Pro-forma             Actual

                                                           
USD mln                             FY12    FY11    YoY   FY12    FY11    YoY
Total operating revenues            23,061  23,477  -2%   23,061  20,262  14%
EBITDA                              9,768   9,525   3%    9,768   8,256   18%
EBITDA margin                       42.4%   40.6%   -     42.4%   40.7%   -
EBIT                                4,171   3,175   31%   4,171   2,854   46%
Financial income and expenses       (1,875) (1,850) 1%    (1,875) (1,467) 28%
Net foreign exchange (loss)/gain    592     (486)   n.m.  592     (533)   n.m
and others
Profit before tax                   2,888   839     244%  2,888   854     238%
Income tax expense                  (906)   (650)   39%   (906)   (585)   55%
Profit for the period               1,982   189     949%  1,982   269     637%
Net income                          2,145   525     309%  2,145   543     295%
Capital expenditures^*              4,120   6,683   -38%  4,120   6,349   -35%

*  Including licenses of USD 1.8 billion in 4Q11 & FY11 and USD 0.1 billion in
FY12

 

ORGANIC REVENUE AND EBITDA GROWTH FY12 VERSUS FY11 (FY 11 IS PRO FORMA)

USD mln         Revenue                  EBITDA
Business Units  Organic FX and Reported  Organic FX and Reported
                        others                   others
Russia          7%      -6%    1%        13%     -6%    7%
Europe & NA     -3%     -7%    -10%      -3%     -7%    -10%
Africa & Asia   9%      -9%    0%        15%     -4%    11%
Ukraine         2%      0%     2%        -1%     -1%    -2%
CIS             15%     -5%    10%       22%     -6%    16%
Total           4%      -6%    -2%       8%      -5%    3%

BUSINESS UNITS PERFORMANCE IN 4Q12

  o Russia
  o Europe & North America
  o Africa & Asia
  o Ukraine
  o CIS

BUSINESS UNIT RUSSIA – FINANCIAL AND OPERATING RESULTS

  o Positive operational trend of previous quarters continued in 4Q12
  o Revenue growth of 4% YoY, supported by 37% increase YoY in mobile data
    revenues
  o EBITDA increase of 15% YoY leading to EBITDA margin growth of 4.2 p.p. YoY
    to 41.3%
  o Operational Excellence program delivered more than double of targeted RUB
    5 billion annualized savings

The Russian Business Unit continued the positive trend of the previous
quarters, delivering profitable growth with a revenue increase of 4% YoY and
EBITDA growing double digit YoY in 4Q12. The strong EBITDA YoY performance was
partly the result of a relatively low comparable EBITDA in 4Q11, which was
impacted by relatively high commercial and technical costs and one-offs of RUB
800 million in total, including a provision for HR costs and an inventory
write-down. During 4Q12, VimpelCom continued its strong execution of its
operational excellence program and realized more than double its initial
target of RUB 5 billion in annualized savings in 2012.

The mobile subscriber base in Russia declined by 2% YoY to 56.1 million, but
the impact on revenue was offset by an increase in ARPU of 5% YoY due to
strong increase of mobile data revenues.

Mobile revenues grew by 4% YoY, driven by an increase in ARPU and strong
equipment sales. Mobile data revenues increased by 37% YoY with revenues for
small screens up by 52%.

Fixed-line revenue growth slowed to 0.4% YoY, mainly due to a decline in
wholesale fixed-line voice revenues, while FTTB revenue recorded a strong
growth of 24% YoY.

EBITDA margin in 4Q12 was 41.3%, an increase of 4.2 p.p. YoY. This includes
the negative  effect of forex changes in 4Q12, which impacted EBITDA margin by
0.2 p.p. Savings in commercial costs were among the biggest contributors to
the EBITDA margin improvement, primarily driven by the shift to a revenue
share model with distributors as part of the Operational Excellence program.

VimpelCom remains on track to deliver continued improvement in network quality
to support the growth of mobile data. In 2012, VimpelCom significantly
increased IP-zation to 48% from 11% at the start of the year and grew the
number of node-Bs by 22%. Improving network quality continues to be the
Company's focus with the aim to be on par with its peers in the key regions at
the end of 2013. As a result of these efforts, the Company expects
CAPEX/Revenues to increase to 22% in 2013.

KEY DEVELOPMENTS 4Q12

  o Total revenue in Russia grew by 4% YoY to RUB 73.6 billion driven by the
    increase in mobile revenues.
  o Mobile revenues increased 4% YoY mainly as a result of growth in data
    revenue by 37% YoY, as well as in equipment revenues. Mobile ARPU
    increased by 5% YoY to RUB 343.
  o Fixed-line revenue increased 0.4% YoY with continuing growth in fixed
    broadband revenues, up 23% YoY, offset by a 9% decline YoY in wholesale
    voice revenues.
  o EBITDA increased by 15% YoY and EBITDA margin was 41.3%, an increase of
    4.2 p.p. compared to 4Q11, mainly driven by the strong execution of the
    Operational Excellence program.
  o Mobile subscriber base decreased by 2% YoY to 56.1 million; mobile
    broadband subscribers increased 5% YoY to 2.7 million. The fixed broadband
    subscriber base grew  15% YoY to 2.4 million.
  o CAPEX/Revenues was 34% in 4Q12, in line with the network construction
    schedule. CAPEX/Revenues for FY12 stood at 18%.

RUSSIA KEY INDICATORS

RUB mln                              4Q12   4Q11   YoY  FY12    FY11    YoY
Total operating revenues             73,637 71,022 4%   285,375 266,087 7%
Total operating expenditures         43,259 44,664 -3%  164,897 159,407 3%
EBITDA                               30,378 26,358 15%  120,478 106,681 13%
EBITDA margin                        41.3%  37.1%       42.2%   40.1%
CAPEX                                25,076 25,318 -1%  50,699  59,795  -15%
CAPEX / Revenues                     34%    36%         18%     22%
Mobile
Mobile total operating revenues      61,579 59,012 4%   236,922 221,534 7%
- of which mobile data               7,036  5,118  37%  24,330  17,604  38%
Mobile subscribers ('000)            56,110 57,224 -2%
- of which mobile broadband ('000)   2,654  2,538  5%
Mobile ARPU (RUB)                    343    327    5%
MOU (min)                            290    259    12%
Fixed
Fixed-line total operating revenues  12,058 12,009 0%   48,453  44,554  9%
Fixed Broadband revenues             3,148  2,564  23%  11,719  8,676   35%
Fixed Broadband subscribers ('000)   2,378  2,073  15%
Fixed Broadband ARPU (RUB)           445    432    3%

BUSINESS UNIT EUROPE & NA - FINANCIAL AND OPERATING RESULTS ITALY

  o Continued relative outperformance of the market
  o Total Revenues, excluding MTR impact, increasing 2% YoY
  o EBITDA margin increased 0.1 p.p. YoY to 37.5%; MTR cut partially offset by
    cost efficiency
  o EBITDA-CAPEX increased YoY in 4Q12 and FY12  
  o Strong Data revenue growth: Mobile Internet up 37%, messaging up 6%, fixed
    broadband up 5%
  o 55% share of mobile net additions driven by positive MNP inflow balance

WIND posted a solid performance in 4Q12 with the strong commercial success of
WIND's offerings offsetting the regulatory and macroeconomic challenges in the
market. Despite the challenging context and the intense competitive
environment, WIND was able to further strengthen its competitive position in
the market.

Total revenues in 4Q12 declined 4% YoY mainly as a result of the 6% reduction
in service revenues arising from the 53% cut in the mobile termination rate
(MTR), which occurred in July, partially offset by a strong increase in
handset sales driven by the success of WIND's "All Inclusive" mobile offerings
and certain settlements with third parties. Excluding the impact from the MTR
cut, total revenues grew 2% YoY with total service revenues up 1% YoY.

Mobile service revenues declined by 7% YoY due to the aforementioned MTR cut,
net of which growth would have been 2% YoY. WIND's mobile subscriber base
increased by 3% YoY due to strong net additions in the quarter, securing over
55% share of mobile network operator (MNO) net additions. The quarter was,
however, characterized by a high churn rate due to an acceleration of MNP, but
WIND managed to maintain a positive inflow balance.

In fixed-line, the results of the new strategy based on LLU focus and
profitability, resulted in a slight decline in total subscribers. The decline
in the overall customer base, coupled with a lower pay per use price and
traffic driven by competitive pressure and economic slowdown, resulted in a 3%
decline in fixed line service revenues, while the new strategy delivered a
solid improvement in marginality.

In 4Q12, WIND continued to deliver strong performance in Data with Mobile
Internet revenues growing 37%, messaging revenues up 6%, and fixed BB revenues
increasing by 5%. The success of WIND's offerings in both fixed and mobile,
under the "All Inclusive" umbrella proposition, was clearly demonstrated by
the solid increase in mobile broadband subscribers, up 24% YoY, driven by the
23% increase in consumer small screen users which account for 66% of total
consumer mobile internet revenues in 2012. Fixed broadband customers grow by
4%, mainly driven by the 6% increase in the more profitable LLU BB subscriber
base.

EBITDA in 4Q12 declined by approximately 4% driven by the reduction in
top-line, due to the MTR cut, partially offset by structural cost saving
initiatives implemented in the period. The EBITDA margin increased by 0.1
percentage point YoY. Excluding the impact from MTRs, underlying EBITDA grew
2% YoY. MTR reductions will also impact 2013 with a first cut having taken
place in January 2013 and a final cut scheduled for July 2013.  As part of the
overall Cost Efficiency Project WIND launched its Network Transformation
Project aimed at achieving OPEX savings of approximately EUR 40-45mln per
annum starting in 2013.

KEY DEVELOPMENTS 4Q12

  o Total revenues declined 4% YoY to EUR 1,369 million with an underlying
    increase, excluding MTR impact, of 2%.
  o EBITDA in 4Q12 declined 4% to EUR 514 million, with a margin increase of
    0.1 percentage points to 37.5%.
  o CAPEX in 4Q12, excluding LTE spectrum, was EUR 326 million bringing FY
    2012 total CAPEX to EUR 905 million.
  o Mobile subscriber base increased 3% to over 21.6 million. Mobile broadband
    consumer subscribers grew 24% YoY.
  o Mobile data ARPU increased by 8% to EUR 4.1 accounting for 30% of the
    total ARPU of EUR 13.7 declining 10% vs. 4Q11; the voice ARPU decline was
    due to the July MTR cut and competitive intensity, coupled with the
    ongoing success of WIND's data only SIM card offerings for tablets, PCs
    and dongles, which do not generate voice revenues.
  o In fixed-line, WIND continued to focus on the direct market, achieving a
    4% growth in voice LLU subscribers which reached 2.45 million. LLU
    customers now account for 79% of the overall fixed voice customer base of
    3.11 million. In fixed broadband, the momentum remained strong, with
    subscribers growing by 4% to 2.21 million, driven by a 6% increase in LLU
    Broadband customers. Dual-play subscribers grew by 6% YoY reaching 1.85
    million.
  o Fixed-line ARPU decreased by 8% to EUR 30.7 in 4Q12 driven by the
    reduction of pay per use traffic and price decline resulting from
    competitive pressure. Broadband ARPU was stable YoY at EUR 19.1.

ITALY KEY INDICATORS

Euro mln                               4Q12   4Q11   YoY    FY12   FY11   YoY
Total operating revenues               1,369  1,424  -3.9%  5,427  5,570  -3%
Total operating expenditures           856    892    -4%    3,365  3,451  -2%
EBITDA                                 514    533    -4%    2,062  2,120  -3%
EBITDA margin                          37.5%  37.4%         38.0%  38.1%
CAPEX                                  342    1,533  -78%   1,000  2,139  -53%
CAPEX / Revenues                       25%    108%          18%    38%
Mobile
Total revenues                         1,001  1,037  -4%    3,958  4,073  -3%
Subscribers ('000)                     21,650 21,014 3%     21,650 21,014 3%
- of which mobile broadband ('000)     5,541  4,479  24%    5,541  4,479  24%
^(1)
ARPU (€)                               13.7   15.2   -10%   14.4   15.6   -8%
MOU (min)                              212    205    3%     207    197    5%
Fixed
Total revenues                         369    387    -5%    1,469  1,497  -2%
Total voice subscribers ('000)         3,110  3,142  -1%    3,110  3,142  -1%
Total fixed-line ARPU (€)              30.7   33.2   -8%    31.2   33.2   -6%
Broadband subscribers ('000)           2,210  2,135  4%     2,210  2,135  4%
Broadband ARPU (€)                     19.1   19.1   0%     18.8   19.3   -2%
Dual-play subscribers ('000)           1,848  1,743  6%     1,848  1,743  6%

 (1) Mobile broadband includes consumer customers that have performed at least
one mobile Internet event in the previous month on 2.5G/3G/3.5G

CANADA

In 4Q12 Wind Mobile continued to strongly deliver on its "Value Plus"
strategy, adding primarily postpaid subscribers, while carefully managing
prepaid economics for both voice and mobile broadband customers. Wind  Mobile
became the fastest growing new entrant wireless operator in the Canadian
market. The Company added over 80 thousand subscribers during the quarter,
increasing its active subscriber base to 590 thousand, with over 70% of the
net additions during the quarter being postpaid subscribers. On the commercial
side, Wind Mobile enjoyed a strong holiday season supported by a new media
campaign and the launch of promotional offers. The Company continued to grow
its distribution footprint and branded points of sale increased to 335 at the
end of 2012. Wind Mobile also continued to expand its network and launched in
Peterborough and Windsor in 4Q12, increasing its population coverage to over
14 million. The Company continues to focus on improving network quality and
increased sites on air to 1,300 sites.

CANADA KEY INDICATORS

Mobile              4Q12 4Q11 YoY  FY12 FY11 YoY
Subscribers ('000)  590  403  47%  590  403  47%
ARPU (CAD)          28.1 26.4 6%   27.8 27.0 3%

BUSINESS UNIT AFRICA & ASIA – FINANCIAL AND OPERATING RESULTS

  o Revenues reached USD 937 million, with organic growth of 11% YoY
  o EBITDA increased to USD 426 million, with organic growth of 36% YoY
  o EBITDA margin of 45.5%, supported by operational excellence and cost
    saving initiatives
  o Subscriber base increased by 8% to more than 85 million

Revenues in the Africa & Asia Business Unit reached USD 937 million, with
organic growth of 11% YoY. However, actual results in US dollar terms were
adversely affected by local currency devaluation against the US dollar, mainly
in Algeria and Pakistan. Revenue growth was driven by strong subscriber
growth, an increase in APPM in Pakistan and Bangladesh, and further supported
by growth in mobile data and Value-Added Services (VAS). EBITDA increased to
USD 426 million, achieving an organic growth of 36% YoY, partially as a result
of the ongoing operational excellence initiatives. The strong increase in
Africa & Asia is also driven by the doubling of the EBITDA in Bangladesh as a
result of significantly lower commercial opex (SIM tax subsidy) in 4Q12, while
in 4Q11 banglalink recorded very high customer acquisition costs. In addition,
EBITDA for 4Q11 was adversely affected by provisions for corporate contingent
liabilities and costs associated with the demerger of OTMT.

ALGERIA ("DJEZZY")
During 4Q12, Djezzy was able to maintain its leadership position with a market
share of 55%, growing its subscriber base by 8% YoY to 17.8 million customers.
Revenues increased by 9% YoY in local currency terms, mainly due to the growth
in the number of subscribers. Mobile data revenues grew by 12% YoY. EBITDA
increased by 8% YoY in local currency terms. During the quarter, Djezzy
celebrated its 10^th anniversary.

PAKISTAN ("MOBILINK")
In 4Q12, Mobilink focused on voice, data and VAS offerings, as well as churn
management, leading to a 6% increase YoY in the subscriber base to 36.1
million customers. New regulatory restrictions on retail channel sales led to
a decline in gross additions for the quarter. Revenues increased by 9% YoY in
local currency terms, driven by the increase in data and VAS uptake. Mobile
data revenues achieved a growth of 44% YoY. During the quarter, all cellular
networks in major cities were shut down upon government request for security
reasons on several occasions, resulting in revenue loss for all cellular
operators. Despite these issues, EBITDA increased by 13% YoY in local currency
terms, mostly on the back of strong measures of the operational excellence
initiative. On November 29^th 2012, Mobile Financial Services (MFS) were
launched in collaboration with Waseela Microfinance Bank Limited. Initial
services offered include domestic money remittance and bill payment.

BANGLADESH ("BANGLALINK")
banglalink increased its subscriber base by 9% YoY, reaching 25.9 million
customers at the end of 4Q12. Revenues grew 13% YoY in local currency terms,
driven by a higher level of VAS and data adoption, which led to mobile data
revenues increasing by 130% YoY, and targeted start-up and reactivation
promotions. The new self-regulations set by the local regulator, BTRC,
regarding VoIP usage forced banglalink to disconnect suspected VoIP users with
high ARPU. This negatively affected revenues and is expected to have
significant negative impact during 2013. EBITDA in 4Q12 doubled YoY in local
currency terms due to savings on commercial opex resulting from lower gross
additions. EBITDA in 4Q11 was adversely affected by the aggressive acquisition
strategy that followed the reduction in SIM tax in June 2011, which led to an
adjustment in SIM tax subsidy allocation.

SUB SAHARAN AFRICA ("TELECEL GLOBE")
Telecel Globe subscribers increased by 42% YoY to approximately 4.5 million,
with the number of subscribers in Zimbabwe increasing by 70% YoY. Despite the
political situation and armed rebellion that erupted in CAR during December
2012, the network continues to function normally. Nevertheless, revenues
decreased by 6% YoY in local currency terms due to lower revenues achieved
during December compared to the same period last year, as a result of the
security situation in the country. In Burundi, revenues grew by 21% YoY in
local currency terms, mainly driven by 21% growth in subscribers to 1.4
million customers. During the quarter, Mobile Financial Services ("Leo
Manoti") were launched in Burundi. Telecel Globe EBITDA showed a significant
improvement YoY due to cost optimization initiatives, reversing the loss seen
in 4Q11.

SOUTH EAST ASIA
Revenues for South East Asia decreased by 45% YoY, mainly due to the sale of
Vietnam. EBITDA recovered due to the sale of Vietnam and savings on dealer
commissions and lower interconnect costs. In Laos, Beeline continued to offer
SMS, voice, and data bundles, which were launched in November, and introduced
VAS for the first time.

AFRICA & ASIA KEY INDICATORS

USD mln                       4Q12  4Q11  YoY   FY12  FY11  YoY
Revenues                      937   922   2%    3,721 3,719 0%
Total operating expenditures  511   601   -15%  1,981 2,153 -8%
EBITDA                        426   321   33%   1,741 1,566 11%
EBITDA margin                 45.5% 34.8%       46.8% 42.1%
CAPEX                         193   646   -70%  400   976   -59%
CAPEX / revenues              21%   70%         11%   26%

For details per country unit please see Attachment B

AFRICA & ASIA BUSINESS UNIT: COUNTRY DETAIL

ALGERIA

DZD bln
                          4Q12  4Q11  YoY  FY12  FY11  YoY
Total operating revenues  37    34    9%   143   136   6%
EBITDA                    22    20    8%   85    80    6%
EBITDA margin             58.9% 59.5%      59.4% 59.3%

PAKISTAN

PKR bln
                          4Q12  4Q11  YoY  FY12  FY11  YoY
Total operating revenues  27.2  25.0  9%   105.8 97.9  8%
EBITDA                    11.7  10.4  12%  45.6  40.0  14%
EBITDA margin             43.0% 41.7%      43.1% 40.9%

BANGLADESH

BDT bln
                          4Q12  4Q11  YoY   FY12  FY11  YoY
Total operating revenues  11.2  9.9   13%   45.4  37.9  20%
EBITDA                    4.2   2.1   104%  15.7  12.5  26%
EBITDA margin             37.4% 20.8%       34.7% 33.0%

BUSINESS UNIT UKRAINE – FINANCIAL AND OPERATING RESULTS

  o Revenues increased 4% YoY to UAH 3.5 billion
  o Successful transition to mobile bundled tariff plans, leading to recovery
    in mobile revenues  growth
  o EBITDA increased by 9% YoY to UAH 1.8 billion; EBITDA margin up 2.2 p.p.
    to 52.5%
  o Mobile subscriber base grew 5% YoY to 26.0 million; Fixed BB subscribers
    up 54% YoY to 613 thousand

During the fourth quarter, VimpelCom continued to solidify its market position
in the mobile segment. The Company showed a solid YoY improvement in revenues
and EBITDA, driven by a successful migration of its customers to bundled
tariff plans and by strong dynamics in fixed broadband revenues. VimpelCom
recorded an EBITDA margin of 52.5% in 4Q12 driven by growth of mobile revenues
and cost measures as part of the operational excellence program.

  o Total revenues grew 4% to UAH 3.5 billion. The mobile service revenues
    trend was inverted and returned to a growth of 3% in 4Q12 versus 4Q11,
    driven by successful transition to bundled tariff plans and a 5% YoY
    growth of the mobile subscriber base to 26.0 million. The Company
    transitioned 75% of subscribers to bundled tariffs as of YE 2012 and the
    transition is expected to be finalized in 2013. Strong YoY growth of
    handset sales added to the YoY revenue growth of 4%. Fixed-line revenues
    were up 3% YoY as a result of strong FTTB revenue growth. Fixed
    residential broadband revenue continued to outgrow the market,  increasing
    by 77% YoY, driven by a growth in the fixed broadband (FBB) subscriber
    base of 54% YoY to 613 thousand and an 8% YoY growth of fixed broadband
    ARPU to UAH 47.2.
  o EBITDA increased 9% YoY to UAH 1.8 billion and EBITDA margin was up 2.2
    p.p. YoY to 52.5% in 4Q12, mainly due to the growth in mobile service
    revenue and residential broadband margin, but the YoY comparison was also
    positively impacted by a one-off provision for HR costs in 4Q11. EBITDA
    margin was also positively affected by the improved revenue mix in
    fixed-line with less wholesale voice and a larger share of interconnect
    revenues.
  o CAPEX was UAH 602 million in 4Q12 resulting in a  CAPEX/Revenues of 14%
    for FY12. CAPEX FY12 was 18% below FY11 as a result of reduced investments
    in the FTTB network following the completion of the rollout.

UKRAINE KEY INDICATORS

 UAH mln                                4Q12   4Q11   YoY   FY12   FY11   YoY
Net operating revenues                  3,453  3,326  4%    13,392 13,078 2%
Total operating expenditures            1,639  1,654  -1%   6,525  6,125  7%
EBITDA                                  1,814  1,672  9%    6,867  6,953  -1%
EBITDA margin                           52.5%  50.3%        51.3%  53.2%
CAPEX                                   602    788    -24%  1,848  2,264  -18%
CAPEX / revenues                        17%    24%          14%    17%
Mobile
Mobile net operating revenues           3,190  3,070  4%    12,326 12,106 2%
Mobile subscribers ('000)               25,960 24,776 5%
Mobile ARPU (UAH)                       40.7   41.1   -1%
MOU (min)                               497.7  482.8  3%
Fixed-line
Fixed-line net operating revenues       264    256    3%    1,066  972    10%
Fixed-line broadband revenues           82     47     77%   275    158    74%
Fixed-line broadband subscribers        613    397    54%
('000)
Fixed-line broadband ARPU (UAH)         47.2   43.7   8%

BUSINESS UNIT CIS^* – FINANCIAL AND OPERATING RESULTS

  o Organic growth of revenues of 21% YoY, with strong positive impact from
    Uzbekistan
  o EBITDA of USD 235 million, with organic growth of 45% YoY
  o EBITDA margin of 48.1%
  o Mobile subscribers up 23% YoY to 24 million
  o Mobile broadband subscribers up 29% YoY to 12 million; Fixed BB subscriber
    base up 54% to 326 thousand

The CIS Business Unit continued to perform strongly, delivering profitable
double digit growth in 4Q12. However, since 3Q12 the results were
substantially positively  impacted by the situation in Uzbekistan, following
the network closure of a competitor by the Uzbek authorities.

VimpelCom increased its mobile subscriber base in the CIS by 23% YoY, mainly
driven by a 60% YoY growth in subscribers in Uzbekistan. The Company continued
to face particularly strong competition in Kazakhstan, but also in Armenia and
Tajikistan.

  o In 4Q12, total revenues grew organically by 21% YoY, with the main
    contribution coming from Uzbekistan. Reported revenues grew 16% to USD 488
    million, impacted by negative forex movements. If Uzbekistan would have
    been adjusted to the growth level of 1H12, the revenue organic growth in
    4Q12 would have been 9% YoY.
  o Total mobile revenues increased organically by 23% YoY in 4Q12 supported
    by 71% YoY mobile data revenue growth, primarily resulting from small
    screen subscribers, which more than offset the slowdown in voice growth
    and decline in revenue from sales of devices.
  o Fixed-line revenues increased organically by 3% YoY, due to strong growth
    in Kazakhstan, partially offset by voice and wholesale revenue decline in
    Armenia and Tajikistan.
  o EBITDA grew organically 45%, or 37% on a reported basis, mainly due to
    strong mobile revenue growth in Uzbekistan. If Uzbekistan would have been
    adjusted to the growth level of 1H12, EBITDA organic growth would have
    been 17% YoY.
  o EBITDA margin reached 48.1% in 4Q12 up 7.3 p.p. over 4Q11, due to strong
    performance in Uzbekistan and cost measures undertaken as part of the
    ongoing Operational Excellence programs in all CIS countries. 
  o In 4Q12 CAPEX was USD 128 million, bringing FY 2012 CAPEX/Revenues to 22%.
    The Company's main investment projects, focused on data development, are
    on schedule and network expansion continues to support both traffic and
    revenue growth.

* CIS operations include operations in Kazakhstan, Uzbekistan, Armenia,
Kyrgyzstan, Tajikistan, and Georgia.

KAZAKHSTAN
The market in Kazakhstan remained highly competitive and VimpelCom is
transitioning its subscriber base to bundled tariff plans, causing a temporary
negative impact on revenues. This negative impact is expected to continue in
the coming quarters, but improvements in revenue dynamics are expected to be
visible after the transition is completed, as a result of upselling of the
subscriber base. Revenues in Kazakhstan increased by 2% YoY organically in
4Q12, driven by a 2% YoY growth of mobile service revenues and a 54% YoY
increase in fixed-line revenues. Mobile data revenues showed strong growth of 
40% YoY in 4Q12, as a result of the Company´s focus on increasing data usage
for small screens, causing data revenue growth for smartphones to grow by 50%
YoY. EBITDA grew 8% YoY and EBITDA margin improved 2.6 p.p. to 46.2%,
supported by cost control measures as part of the Operational Excellence
program.

UZBEKISTAN
In Uzbekistan, VimpelCom continued to strengthen its market position
substantially in 4Q12 after the closure of a competitor´s network. Revenue was
up 99% YoY in local currency, supported by a 60% YoY increase of the
subscriber base as well as 26% YoY ARPU increase as a result of the growth of
high value subscribers and increasing mobile data revenues. EBITDA grew 192%
YoY and EBITDA margin was 60.3%, a sharp increase from 41.0% in 4Q11. These
results were supported by exceptional revenue growth, positively driven by the
competitor's network closure, and control of structural OPEX. The main focus
of management in Uzbekistan is to sustain quality of service and further
improve network capacity.

ARMENIA
Revenues in Armenia declined organically by 10% YoY in 4Q12, primarily due to
stagnating fixed voice as a result of fixed to mobile convergence and a lower
level of terminated traffic revenues in the fixed-line segment.

The mobile segment faces strong competition and revenues were impacted by a
slowdown in mobile interconnect, while at the same time mobile data revenues
showed an increase of 29% YoY. EBITDA declined 13% YoY and EBITDA margin
declined 1.1 p.p. to 39.5%.

KYRGYZSTAN
Kyrgyzstan continued to show positive dynamics in revenue and EBITDA growth.
In local currency, revenues grew 15% YoY, supported by subscriber base growth
of 5% YoY and ARPU growth of 10% YoY. EBITDA grew organically by 23% YoY due
to structural OPEX decline, resulting in an increased EBITDA margin in local
currency of 58.3%. Mobile broadband subscriber growth of 16% YoY  coupled with
the increase in mobile data usage resulted in significant mobile data revenue
growth, up 63% YoY.

TAJIKISTAN
In Tajikistan, revenues increased organically by 14% YoY  in 4Q12, while
EBITDA increased by 19% YoY, leading to a 1.8 p.p. increase in EBITDA margin
to 45.9%. VimpelCom maintained its market position by growing its subscriber
base by 17% YoY in 4Q12. Data revenue grew strongly by 63% supported by an 11%
increase in mobile broadband subscribers, in line with increasing usage of
mobile data services.

GEORGIA
Georgia continued to deliver strong results in 4Q12, with subscriber base
growth of 16%, revenue growth of 19% and a 52% increase in EBITDA YoY in local
currency. EBITDA margin increased 6.3 p.p. YoY to 28.9% due to structural OPEX
control measures and focus on efficiency improvement. The Company was able to
further strengthen its market position in 4Q12.

CIS^* KEY INDICATORS

USD mln                                  4Q12   4Q11   YoY   FY12  FY11  YoY
Total operating revenues                 488    419    16%   1,755 1,589 10%
Total operating expenditures             253    248    2%    943   886   6%
EBITDA                                   235    171    37%   813   703   16%
EBITDA margin                            48.1%  40.8%        46.3% 44.3%
CAPEX                                    128    241    -47%  384   626   -39%
CAPEX / revenues                         26%    58%          22%   39%
Mobile
Mobile subscribers ('000)                24,167 19,703 23%
- of which mobile broadband ('000)       11,967 9,287  29%
Fixed-line
Fixed-line broadband subscribers ('000)  326    212    54%
Fixed-line broadband revenues            13     9      46%   34    30    15%

* CIS operations include operations in Kazakhstan, Uzbekistan, Armenia,
Kyrgyzstan, Tajikistan, and Georgia.

For details per country unit please see Attachment B

CIS BUSINESS UNIT: COUNTRY DETAIL

KAZAKHSTAN

KZT mln
                          4Q12   4Q11   YoY  FY12    FY11    YoY
Total operating revenues  32,055 31,566 2%   123,665 120,672 2%
EBITDA                    14,822 13,749 8%   58,811  57,708  2%
EBITDA margin             46.2%  43.6%       47.6%   47.8%

UZBEKISTAN

USD mln
                          4Q12  4Q11  YoY   FY12  FY11  YoY
Total operating revenues  158   80    99%   463   277   67%
EBITDA                    95    33    193%  253   122   107%
EBITDA margin             60.3% 41.0%       54.6% 44.1%

 

CONFERENCE CALL INFORMATION

On March 6, 2013, the Company will host an analyst & investor conference call
on its fourth quarter 2012 results.  The call and slide presentation may be
accessed at http://www.vimpelcom.com

2:30 pm CET investor and analyst conference call
US call-in number:                    + 1 877 616-4476
International call-in number:       + 1 402 875-4763

The conference call replay and the slide presentations webcast will be
available until March 13, 2013. The slide presentation will also be available
for download on the Company's website.

Investor and analyst call replay
US Replay number: +1 855 859-2056
Confirmation code : 11312009

International replay: +1 404 537-3406
Confirmation code : 11312009

DISCLAIMER

This press release contains "forward-looking statements", as the phrase is
defined in Section 27A of the Securities Act and Section 21E of the Exchange
Act. These statements include those relating to the Company's strategy,
development plans and anticipated performance, including the Company's Value
Agenda objectives, CAPEX projections, cost optimization plans, expected cash
flow improvements, intentions regarding its interest in WIND Mobile in Canada,
expectations regarding negotiations with the Algerian Government and
anticipated dividends.  These and other forward-looking statements are based
on management's best assessment of the Company's strategic and financial
position and of future market conditions and trends. These discussions involve
risks and uncertainties. The actual outcome may differ materially from these
statements as a result of continued volatility in the economies in our
markets, unforeseen developments from competition, governmental regulation of
the telecommunications industries, general political uncertainties in our
markets and/or litigation with third parties. Future dividend payments are
subject to Supervisory Board approval and there can be no assurance as to the
timing and amount of such payments. There can be no assurance that such risks
and uncertainties will not have a material adverse effect on the Company.
Certain factors that could cause actual results to differ materially from
those discussed in any forward-looking statements include the risk factors
described in the Company's Annual Report on Form 20-F for the year ended
December 31, 2011 and other public filings made by the Company with the SEC,
which risk factors are incorporated herein by reference. The Company disclaims
any obligation to update developments of these risk factors or to announce
publicly any revision to any of the forward-looking statements contained in
this release, or to make corrections to reflect future events or developments.

ABOUT VIMPELCOM LTD

VimpelCom is one of the world's largest integrated telecommunications services
operators providing voice and data services through a range of traditional and
broadband mobile and fixed technologies in Russia, Italy, Ukraine, Kazakhstan,
Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Cambodia, Laos, Algeria,
Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic and Canada.
VimpelCom's operations around the globe cover territory with a total
population of approximately 780 million people. VimpelCom provides services
under the "Beeline", "Kyivstar", "djuice", "Wind", "Infostrada" "Mobilink",
"Leo", "banglalink", "Telecel", and "Djezzy" brands. As of December 31, 2012
VimpelCom had 214 million mobile subscribers on a combined basis. VimpelCom is
traded on the New York Stock Exchange under the symbol (VIP). For more
information visit: http://www.vimpelcom.com

CONTENT OF THE ATTACHMENT TABLES

Attachment A      VimpelCom Ltd Financial Statements                     21
Attachment B      Country units key indicators CIS and Africa & Asia     26
Attachment C      Reconciliation                                         28
                  Tables                                   
                  Average Rates of Functional Currencies to USD
Attachment D      Wind Telecomunicazioni group condensed financial       31
                  statement of income   
Attachment E      Definitions                                            31
For more information on financial and operating data for specific countries,
please refer to the supplementary file Factbook4Q2012.xls on our website at
http://vimpelcom.com/ir/financials/results.wbp

ATTACHMENT A: VIMPELCOM LTD FINANCIAL STATEMENTS

VIMPELCOM LTD UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (ACTUAL)

                                             Actual
                                                                 Actual
 USD (millions)                              Three months ended
                                                                 Full Year
                                              December 31
                                             2012       2011     2012  2011
Operating revenues
 Service revenues                            5,605  5,594        22,122 19,579
 Sales of equipment and accessories          234    190          677    516
 Other revenues                              111    105          262    167
 Total operating revenues                    5,950  5,889        23,061 20,262
Operating expenses
 Service costs                               1,762    1,440      5,439  4,962
 Cost of equipment and accessories           241      254        693    663
 Selling, general and administrative         1,501    1,968      7,161  6,381
 expenses
 Depreciation                                758      790        2,926  2,726
 Amortization                                519      664        2,080  2,059
 Impairment of GWMC^*                        328      -          328    -
 Impairment loss                             58       527        58     527
 Loss on disposals of non-current assets     74       32         205    90
 Total operating expenses                    5,241      5,675    18,890 17,408
  Operating profit                           709        214      4,171  2,854
 Finance costs                               522        501      2,029  1,587
 Finance income                              (38)       (34)     (154)  (120)
 Revaluation of previously held interest in  (606)      -        (606)  -
 Euroset
 Other non-operating losses                  44         152      75     308
 Shares of loss/(profit) of associates and
 joint ventures accounted for using the      (7)        35       9      35
 equity method
 Net foreign exchange  loss/(gain)           30         119      (70)   190
 Profit/(loss) before tax                    764        (559)    2,888  854
 Income tax expense                          195        101      906    585
 Profit/(loss)  for the year from            569        (660)    1,982  269
 continuing operations
 Profit/(loss)  for the period               569        (660)    1,982  269
 Attributable to:
 The owners of the parent                    801        (381)    2,145  543
 Non-controlling interest                    (232)      (279)    (163)  (274)
                                             569        (660)    1,982  269
Earnings/loss per share
 Basic, profit for the year attributable to  $0.49      -$0.24   $1.33  $0.36
 ordinary equity holders of the parent
 Diluted, profit for the year attributable   $0.49      -$0.24   $1.32  $0.36
 to ordinary equity holders of the parent

*Globalive Wireless Management Company

ATTACHMENT A: VIMPELCOM LTD FINANCIAL STATEMENTS

VIMPELCOM LTD UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (PRO-FORMA)

                                             Pro-forma
                                                                 Pro-forma
 USD (millions)                              Three months ended
                                                                 Full Year
                                              December 31
                                             2012       2011     2012  2011
Operating revenues
 Service revenues                            5,605  5,594        22,122 22,794
 Sales of equipment and accessories          234    190          677    516
 Other revenues                              111    105          262    167
 Total operating revenues                    5,950  5,889        23,061 23,477
Operating expenses
 Service costs                               1,762    1,440      5,439  5,693
 Cost of equipment and accessories           241      254        693    771
 Selling, general and administrative         1,501    1,968      7,161  7,488
 expenses
 Depreciation                                758      790        2,926  3,094
 Amortization                                519      664        2,080  2,663
 Impairment of GWMC^*                        328      -          328    -
 Impairment loss                             58       527        58     504
 Loss on disposals of non-current assets     74       32         205    89
 Total operating expenses                    5,241      5,675    18,890 20,302
  Operating profit                           709        214      4,171  3,175
 Finance costs                               522        501      2,029  2,010
 Finance income                              (38)       (34)     (154)  (160)
 Revaluation of previously held interest in  (606)      -        (606)  -
 Euroset
 Other non-operating losses                  44         152      75     323
 Shares of loss/(profit) of associates and
 joint ventures accounted for using the      (7)        35       9      69
 equity method
 Net foreign exchange loss/(gain)            30         119      (70)   94
 Profit/(loss) before tax                    764        (559)    2,888  839
 Income tax expense                          195        101      906    650
 Profit/(loss) for the year from continuing  569        (660)    1,982  189
 operations
 Profit/(loss) for the period                569        (660)    1,982  189
 Attributable to:
 The owners of the parent                    801        (381)    2,145  525
 Non-controlling interest                    (232)      (279)    (163)  (336)
                                             569        (660)    1,982  189
Earnings/loss per share
 Basic, profit for the year attributable to  $0.49      -$0.24   $1.33  $0.32
 ordinary equity holders of the parent
 Diluted, profit for the year attributable   $0.49      -$0.24   $1.32  $0.32
 to ordinary equity holders of the parent

*Globalive Wireless Management Company

 

ATTACHMENT A: VIMPELCOM LTD INTERIM FINANCIAL STATEMENTS

VIMPELCOM LTD UNAUDITED INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

USD (millions)                             31 December 2012, 31 December 2011,
                                           audited           audited
Assets
Non-current assets
Property and equipment                     15,666            15,165
Intangible assets                          10,601            11,825
Goodwill                                   16,964            16,776
Investments in associates and joint        1,168             388
ventures
Deferred tax asset                         312               386
Financial assets                           1,091             1,536
Other non-financial assets                 18                92
Total non-current assets                   45,820            46,168
Current assets
Inventories                                167               227
Trade and other receivables                2,495             2,711
Other non-financial assets                 1,290             1,320
Current income tax asset                   292               293
Other financial assets                     270               345
Cash and cash equivalents                  4,949             2,325
Total current assets                       9,463             7,221
Assets classified as held for sale         77                650
Total assets                               55,360            54,039
Equity and liabilities
Equity
Equity attributable to equity owners of    14,869            14,037
the parent
Non-controlling interests                  503               865
Total equity                               15,372            14,902
Non-current liabilities
Financial liabilities                      25,955            25,724
Provisions                                 548               402
Other non-financial liabilities            410               442
Deferred tax liability                     1,416             1,624
Total non-current liabilities              28,329            28,192
Current liabilities
Trade and other payables                   4,585             4,566
Dividend payables                          1,274             -
Other non-financial liabilities            2,243             2,030
Other financial liabilities                3,126             3,118
Current income tax payable                 202               399
Provisions                                 192               182
Total current liabilities                  11,622            10,295
Liabilities associated with assets held    37                650
for sale
Total equity and liabilities               55,360            54,039

 

ATTACHMENT A: VIMPELCOM LTD FINANCIAL STATEMENTS

VIMPELCOM LTD UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

USD (millions)                                                 2012    2011
Operating activities
Profit after tax                                               2,093   269
Tax expense                                                    866     585
Profit before tax                                              2,959   854
Non-cash adjustment to reconcile profit before tax to net
cash flows:
Depreciation                                                   2,926   2,726
Amortization                                                   2,080   2,059
Impairment of GWMC                                             328     -
Impairment loss                                                37      527
Loss on disposals of non-current assets                        205     90
Finance income                                                 (154)   (120)
Finance costs                                                  2,029   1,587
Revaluation of previously held interest in Euroset             (658)   -
Other non-operating losses/(gains)                             77      308
Net foreign exchange (gain)/ loss                              (70)    190
Shares of loss/(profit) of associates and joint ventures       9       35
accounted for using the equity method
Movements in provisions and pensions                           36      (25)
Cash from operations                                           9,804   8,231
Working capital adjustments:
Change in trade and other receivables and prepayments          10      (176)
Change in inventories                                          14      (69)
Change in trade and other payables                             421     332
Interest paid                                                  (2,144) (1,528)
Interest received                                              383     106
Income tax paid                                                (1,231) (790)
Net cash flows from operating activities                       7,257   6,106
Investing activities
Proceeds from sale of property, plant and equipment and        42      34
intangible assets
Purchase of property, plant and equipment and intangible       (3,886) (6,260)
assets
Payments of loans granted                                      (189)   (118)
Receipts/(payments) from deposits                              107     212
Receipts from/(investments in) associates                      (2)     25
Divested cash net of proceeds from sale of shares in           (75)    -
subsidiaries
Receipt of dividends                                           8       -
Acquisition of subsidiaries, net of cash acquired              (13)    (838)
Net cash flows used in investing activities                    (4,008) (6,945)
Financing activities
Net proceeds from exercise of share options                    -       5
Acquisition of non-controlling interest                        (9)     -
Proceeds from borrowings net of fees paid                      3,094   10,389
Repayment of borrowings                                        (3,650) (6,581)
Purchase of treasury shares                                    -       (1)
Proceeds from sale of treasury stock                           3       -
Dividends paid to equity holders of the parent                 -       (1,216)
Dividends paid to non-controlling interests                    (25)    (13)
Net cash flows used in financing activities                    (587)   2,583
Net increase in cash and cash equivalents                      2,662   1,744
Net foreign exchange difference                                (38)    (304)
Cash and cash equivalents at beginning of period               2,325   885
Cash and cash equivalents at end of period                     4,949   2,325

 

ATTACHMENT B: COUNTRY UNITS KEY INDICATORS

AFRICA & ASIA BUSINESS UNIT: COUNTRY DETAIL

ALGERIA

DZD bln
                         4Q12   4Q11  YoY   FY12  FY11 YoY
Revenues                37.0   33.9   9%   143.3 135.6 6%
EBITDA                  21.8   20.1   8%   85.2  80.4  6%
EBITDA margin           58.9%  59.5%       59.4% 59.3%
CAPEX (USD mln)         30     21     45%  47    40    18%
CAPEX / revenues (USD)  5%     5%          2%    2%
Mobile
Subscribers ('000)      17,846 16,595 8%
ARPU (DZD)              674    673    0%
MOU (min)               254    278    -9%

PAKISTAN

PKR bln                  4Q12   4Q11  YoY    FY12  FY11 YoY
Revenues                27.2   25.0   9%    105.8 97.9  8%
EBITDA                  11.7   10.4   13%   45.6  40.0  14%
EBITDA margin           43.0%  41.7%        43.1% 40.9%
CAPEX (USD mln)         89.2   109.7  -19%  172.7 261.2 -34%
CAPEX / revenues (USD)  32%    38%          15%   23%
Mobile
Subscribers ('000)      36,141 34,214 6%
ARPU (PKR)              243    235    3%
MOU (min)               215    209    3%

BANGLADESH

BDT bln                  4Q12   4Q11  YoY    FY12  FY11 YoY
Revenues                11.2   9.9    13%   45.4  37.9  20%
EBITDA                  4.2    2.1    104%  15.7  12.5  26%
EBITDA margin           37.4%  20.8%        34.7% 33.0%
CAPEX (USD mln)         43.2   336.8  -87%  116.4 428.2 -73%
CAPEX / revenues (USD)  31%    261%         21%   84%
Mobile
Subscribers ('000)      25,883 23,754 9%
ARPU (BDT)              138    140    -1%
MOU (min)               191    207    -8%

SUB SAHARAN AFRICA (TELECEL GLOBE)

USD mln
                     4Q12  4Q11 YoY    FY12  FY11 YoY
Revenues            23    24    -3%   91    94    -3%
EBITDA              7.0   (5.1) n.m.  33.3  7.9   322%
EBITDA margin       27%   n.a         34%   8%
Mobile
Subscribers ('000)  4,464 3,140 42%

SEA (CONSOLIDATED)

USD mln
                     4Q12  4Q11  YoY    FY12  FY11  YoY
Revenues            13    23.5   -45%  60.8  68.7   -12%
EBITDA              0     (19.7) n.m.  (9.7) (75.5) n.m.
EBITDA margin       2%    n.a.         n.a.  n.a.
Mobile
Subscribers ('000)  915   1,418  -35%

CIS BUSINESS UNIT: COUNTRY DETAIL

KAZAKHSTAN

KZT mln
                        4Q12   4Q11   YoY    YTD12   YTD11   YoY
Net operating revenues  32,055 31,566 2%     123,665 120,672 2%
EBITDA                  14,822 13,749 8%     58,814  57,708  2%
EBITDA margin           46.2%  43.6%         47.6%   47.8%
CAPEX (USD mln)         57     99     -42%   166     264     -37%
CAPEX / revenues (USD)  27%    47%           20%     32%
Mobile
Subscribers ('000)      8,589  8,409  2%
ARPU (KZT)              1,156  1,161  -0.4%
MOU (min)               237    165    44%

ARMENIA

AMD mln
                        4Q12   4Q11   YoY   YTD12  YTD11  YoY
Net operating revenues  15,706 17,498 -10%  63,441 70,541 -10%
EBITDA                  6,202  7,108  -13%  25,257 27,038 -7%
EBITDA margin           39.5%  40.6%        39.8%  38.3%
CAPEX (USD mln)         3      7      -50%  15     30     -50%
CAPEX / revenues (USD)  9%     14%          10%    16%
Mobile
Subscribers ('000)      800    765    5%
ARPU (AMD)              2,678  2,887  -7%
MOU (min)               273    261    5%

UZBEKISTAN

USD mln
                        4Q12   4Q11  YoY   YTD12 YTD11 YoY
Net operating revenues  158    80    99%   463   277   67%
EBITDA                  95     33    193%  253   122   107%
EBITDA margin           60.3%  41.0%       54.6% 44.1%
CAPEX (USD mln)         43     85    -50%  137   219   -37%
CAPEX / revenues (USD)  27%    107%        30%   79%
Mobile
Subscribers ('000)      10,194 6,361 60%
ARPU (USD)              5.3    4     26%
MOU (min)               516    458   13%

TAJIKISTAN

USD mln
                        4Q12  4Q11  YoY   YTD12 YTD11 YoY
Net operating revenues  29    25    14%   107   101   6%
EBITDA                  13    11    19%   51    48    8%
EBITDA margin           45.9% 44.1%       47.9% 47.2%
CAPEX (USD mln)         6     14    -58%  20    29    -29%
CAPEX / revenues (USD)  20%   54%         19%   29%
Mobile
Subscribers ('000)      1,132 965   17%
ARPU (USD)              8.9   8     7%
MOU (min)               256   229   12%

GEORGIA

GEL mln
                        4Q12  4Q11  YoY   YTD12 YTD11 YoY
Net operating revenues  35    29    19%   129   106   22%
EBITDA                  10    7     52%   35    25    42%
EBITDA margin           28.9% 22.6%       27.3% 23.4%
CAPEX (USD mln)         3     14    -76%  13    39    -68%
CAPEX / revenues (USD)  16%   80%         16%   63%
Mobile
Subscribers ('000)      969   833   16%
ARPU (GEL)              10.9  11    -1%
MOU (min)               244   217   12%

KYRGYZSTAN

KGS mln
                        4Q12  4Q11  YoY   YTD12 YTD11 YoY
Net operating revenues  2,009 1,753 15%   7,582 6,531 16%
EBITDA                  1,171 954   23%   4,266 3,567 20%
EBITDA margin           58.3% 54.4%       56.3% 54.6%
CAPEX (USD mln)         15    21    -29%  31    44    -29%
CAPEX / revenues (USD)  35%   55%         19%   31%
Mobile
Subscribers ('000)      2,482 2,371 5%
ARPU (KGS)              269.9 245   10%
MOU (min)               253   292   -14%

 

ATTACHMENT C: RECONCILIATION TABLES

RECONCILIATION OF CONSOLIDATED EBITDA OF VIMPELCOM* (PRO FORMA)

 USD mln                        4Q12        4Q11         YTD12     YTD11
                                (unaudited) (unaudited)  (audited) (unaudited)
EBITDA                          2,446       2,227        9,768     9,525
Depreciation                    (758)       (790)        (2,926)   (3,094)
Amortization                    (519)       (664)        (2,080)   (2,663)
Impairment of GWMC^**           (328)       -            (328)     -
Impairment loss                 (37)        (527)        (58)      (504)
Loss on disposals of            (74)        (32)         (205)     (89)
non-current assets
EBIT                            709         214          4,171     3,175
Financial Income and Expenses   (484)       (467)        (1,875)   (1,850)
 -  including  finance income   38          34           154       160
 -  including finance costs     (522)       (501)        (2,029)   (2,010)
Net foreign exchange            589         (306)        592       (486)
(loss)/gain and others
 -  including revaluation of
previously held interest        606         -            606       -
in Euroset
 -  including Other             (44)        (152)        (75)      (323)
non-operating (losses)/gains
 -  including Shares of
(loss)/profit of associates
and joint                       7           (35)         (9)       (69)
ventures accounted for using
the equity method
 -  including Net foreign       (30)        (119)        70        (94)
exchange (loss)/gain
Profit before tax               764         (559)        2,888     839
Income tax expense              (195)       (101)        (906)     (650)
Profit for the period           569         (660)        1,982     189
Profit for the period
attributable to                 (232)       (279)        (163)     (336)
non-controlling interest
Net income                      801         (381)        2,145     525

* See also the supplementary file FactbookQ42012.xls on our website at
http://vimpelcom.com/ir/financials/results.wbp

**Globalive Wireless Management Company 

 

ATTACHMENT C: RECONCILIATION TABLES

RECONCILIATION OF CONSOLIDATED EBITDA OF VIMPELCOM* (ACTUAL)

USD mln                          4Q12        4Q11         YTD12      YTD11
                                 (unaudited) (unaudited)   (audited) (audited)
EBITDA                           2,446       2,227        9,768      8,256
Depreciation                     (758)       (790)        (2,926)    (2,726)
Amortization                     (519)       (664)        (2,080)    (2,059)
Impairment of GWMC^**            (328)       -            (328)      -
Impairment loss                  (37)        (527)        (58)       (527)
Loss on disposals of             (74)        (32)         (205)      (90)
non-current assets
EBIT                             709         214          4,171      2,854
Financial Income and Expenses    (484)       (467)        (1,875)    (1,467)
 -  including  finance income    38          34           154        120
 -  including finance costs      (522)       (501)        (2,029)    (1,587)
Net foreign exchange             539         (306)        592        (533)
(loss)/gain and others
 -  including revaluation of
previously held interest in      606         -            606        -
Euroset
 -  including Other              (44)        (152)        (75)       (308)
non-operating (losses)/gains
 -  including Shares of
(loss)/profit of associates and
joint ventures                   7           (35)         (9)        (35)
accounted for using the equity
method
 -  including Net foreign        (30)        (119)        70         (190)
exchange (loss)/gain
EBT                              764         (559)        2,888      854
Income tax expense               (195)       (101)        (906)      (585)
Profit/(loss) for the year       569         (660)        1,982      269
(Profit)/loss for the year
attributable to non-controlling  (232)       (279)        (163)      274
interest
Profit for the year
attributable to the owners of    801         (381)        2,145      543
the parent

* See also the supplementary file FactbookQ42012.xls on our website at
http://vimpelcom.com/ir/financials/results.wbp
**Globalive Wireless Management Company 

 

ATTACHMENT C: RECONCILIATION TABLES

RECONCILIATION OF VIMPELCOM CONSOLIDATED NET DEBT (ACTUAL)

USD mln                                            1Q12   2Q12   3Q12   4Q12
Net debt                                           24,339 23,067 22,681 21,971
Cash and cash equivalents                          4,033  2,883  3,241  4,949
Long – term and short-term deposits                219    609    715    67
Gross debt                                         28,591 26,559 26,637 26,987
Interest accrued related to financial liabilities  450    558    451    536
Fair value adjustment                              148    228    28     -
Unamortised fair value adjustment under            909    841    817    794
acquisition method of accounting
Other unamortised adjustments to financial         (103)  (147)  69     73
liabilities (fees, discounts etc.)
Derivatives not designated as hedges               403    415    429    453
Derivatives designated as hedges                   173    157    178    237
Total other financial liabilities                  30,570 28,611 28,609 29,080

AVERAGE AND CLOSING RATES OF FUNCTIONAL CURRENCIES TO USD^*

                   Average rates        Closing rates
                   FY12   FY11   YoY    FY12   FY11   Delta
Russian Ruble      31.09  29.39  -5.5%  30.37  32.20  6.0%
Euro               0.78   0.72   -7.5%  0.76   0.77   1.6%
Algerian Dinar     77.84  72.93  -6.3%  78.94  75.33  -4.6%
Pakistan Rupee     93.40  86.33  -7.6%  97.14  89.95  -7.4%
Bangladeshi Taka   81.84  74.07  -9.5%  79.78  81.83  2.6%
Ukrainian Hryvnia  7.99   7.97   -0.3%  7.99   7.99   0.0%
Kazakh Tenge       149.11 146.62 -1.7%  150.74 148.40 -1.6%
Armenian Dram      401.76 372.44 -7.3%  403.58 385.77 -4.4%
Kyrgyz Som         47.01  46.14  -1.9%  47.40  46.48  -1.9%

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

 

ATTACHMENT D: WIND TELECOMUNICAZIONI GROUP CONDENSED STATEMENTS OF INCOME

EUR mln                                     FY 12  FY 11
Revenues                                    5,262   5,431
Other revenues                              165     139
Total Revenues                              5,427   5,570
EBITDA                                      2,063   2,120
D&A                                         (1,147) (1,068)
EBIT                                        916     1,052
Financial Income and expenses               (875)   (934)
EBT                                         40      118
Income Tax                                  (164)   (278)
Profit/(Loss) from discontinued operations  -       6
Net income                                  (124)   (154)

ATTACHMENT E: DEFINITIONS

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

Broadband subscribers are the customer contracts that served as a basis for
revenue generating activity in the three months prior to the measurement date,
as a result of activities including monthly internet access using FTTB and
xDSL technologies as well as mobile internet access via WiFi and USB modems
using 3G/HSDPA technologies. Italian subsidiary measures broadband subscribers
based on the number of active contracts signed. Russian Business Unit includes
IPTV activities.

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.

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

EBITDA is a non-U.S. GAAP financial measure. EBITDA is defined as earnings
before interest, tax, depreciation and amortization. VimpelCom calculates
EBITDA as operating income before depreciation, amortization and impairment
loss and includes certain non-operating losses and gains mainly represented by
litigation provisions for all of its Business Units except for its Russia
Business Unit. The Russia Business Unit's EBITDA is calculated as operating
income before depreciation and amortization. EBITDA should not be considered
in isolation or as a substitute for analyses of the results as reported under
U.S. GAAP. Historically our management used OIBDA (defined as operating income
before depreciation, amortization and impairment losses) instead of EBITDA.
Following the acquisition of Wind Telecom, our management concluded that
EBITDA is a more appropriate measure because it is more widely used amongst
European-based analysts and investors to assess the performance of an entity
and compare it with other market players. Our management uses EBITDA and
EBITDA margin as supplemental performance measures and believes that EBITDA
and EBITDA margin provide useful information to investors because they are
indicators of the strength and performance of the Company's business
operations, including its ability to fund discretionary spending, such as
capital expenditures, acquisitions and other investments, as well as
indicating its ability to incur and service debt. In addition, the components
of EBITDA include the key revenue and expense items for which the Company's
operating managers are responsible and upon which their performance is
evaluated. EBITDA also assists management and investors by increasing the
comparability of the Company's performance against the performance of other
telecommunications companies that provide EBITDA information. This increased
comparability is achieved by excluding the potentially inconsistent effects
between periods or companies of depreciation, amortization and impairment
losses, which items may significantly affect operating income between periods.
However, our EBITDA results may not be directly comparable to other companies'
reported EBITDA results due to variances and adjustments in the components of
EBITDA (including our calculation of EBITDA) or calculation measures.
Additionally, a limitation of EBITDA's use as a performance measure is that it
does not reflect the periodic costs of certain capitalized tangible and
intangible assets used in generating revenues or the need to replace capital
equipment over time. Reconciliation of EBITDA to net income attributable to
VimpelCom Ltd., the most directly comparable U.S. GAAP financial measure, is
presented above.

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

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.

LLU (local loop unbundling), in Italy, this is the regulatory process of
allowing multiple telecommunications operators to use connections from Telecom
Italia's local exchanges to the customer's premises.

MNP (Mobile number portability) is a facility provided by telecommunications
operators which enables customers to keep their telephone numbers when they
change operators.

Mobile subscribers are SIM-cards registered in the system as of a measurement
date, users of which generated revenue at any time during the three months
prior to the measurement date. This includes revenue coming from any incoming
and outgoing calls, subscription fee accruals, debits related to service,
outgoing SMS, Multimedia Messaging Service (referred to as MMS), data
transmission and receipt sessions, but does not include incoming SMS and MMS
sent by VimpelCom or abandoned calls. VimpelCom's total number of mobile
subscribers also includes SIM-cards for use of mobile Internet service via USB
modems and subscribers for WiFi. The number for Italy is based on SIM-cards,
users of which generated revenue at any time during the twelve months prior to
the measurement date. For the purpose of this earnings release, we include all
subscribers of Zimbabwe, which is accounted for as investment at cost, into
Business Unit Africa & Asia and subscribers of all our Canada equity investee
into Business Unit Europe and North America, both of which are included into
total subscribers of VimpelCom.

MOU (Monthly Average Minutes of Use per User) is calculated by dividing the
total number of minutes of usage for incoming and outgoing calls during the
relevant period (excluding guest roamers) by the average number of mobile
subscribers during the period and dividing by the number of months in that
period.

Net debt is a non-U.S. GAAP financial measure and is calculated as the sum of
interest bearing long-term debt and short-term debt minus cash and cash
equivalents, long-term and short-term deposits and fair value hedge. The
Company believes that net debt provides useful information to investors
because it shows the amount of debt outstanding to be paid after using
available cash and cash equivalent and long-term and short-term deposits. Net
debt should not be considered in isolation as an alternative to long-term debt
and short-term debt, or any other measure of the company financial position.
Reconciliation of net debt to long-term debt and short-term debt, the most
directly comparable U.S. GAAP financial measures, is presented below in the
reconciliation tables section.

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

Organic growth Revenue and EBITDA are non-U.S. GAAP financial measures that
reflect changes in Revenue and EBITDA excluding foreign currency movements and
other factors, such as business under liquidation, disposals, mergers and
acquisitions.   We believe investors should consider these measures as they
are more indicative of our ongoing performance and management uses these
measures to evaluate the Company's operational results and trends.

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

SOURCE VimpelCom Ltd.

Website: http://www.vimpelcom.com
Contact: INVESTOR RELATIONS - Gerbrand Nijman,
Investor_Relations@vimpelcom.com, Tel: +31 20 79 77 200 (Amsterdam), or Remco
Vergeer, Investor_Relations@vimpelcom.com, Tel: +31 20 79 77 200 (Amsterdam),
or Stefano Songini, ir@mail.wind.it, Tel +39 06 83111 (Rome), or Mamdouh Abd
Elwahab, otinvestorrelations@otelecom.com, Tel: +202 2461 5050 / 51 (Cairo),
or MEDIA AND PUBLIC RELATIONS - Bobby Leach, pr@vimpelcom.com, Tel: +31 20 79
77 200 (Amsterdam)
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