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JSC VimpelCom Information about the Company

JSC VimpelCom Information about the Company. About the Company.

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JSC VimpelCom Information about the Company

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  1. JSCVimpelComInformation about the Company

  2. About the Company • JSC VimpelCom is a member of VimpelCom Ltd. group of companies. This group is one of the major global integrated telecom operators (countries of presence: Russia, Italy, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republicand Canada) • VimpelCom Ltd. is a member of M2M Alliance created for promotion of M2M-technologies, alongside with 7other global operators (KPN, NTT DOCOMO, Rogers Communications, SingTel, Telefonica, Telstra, Etisalat) • JSC VimpelCom renders integrated services of mobile and fixed line communications, international and long distance communications, data transmission, telematics communication services, and access to the Internet on the basis of both wire and wireless solutions, including technologies of fiber-optic access, WiFiand third generation networks • Individuals, small and medium enterprises, big and transnational corporations, and telecom operators are among VimpelCom’s clients and partners • Services are rendered under Beeline trademark • Our mission: we help people to enjoy communication, to feel free anytime and anywhere

  3. VimpelCom today • The number of VimpelCom Ltd.’s subscribers totals 218 million,the number of JSC VimpelCom’s subscribers totals 55 million* • Beeline roaming is provided in 213 countries (of which 173 countriesare with GPRS-roaming) in networks owned by 572 operators. 99.9% of land stand for these countries and territories. • Over 60,000 hubs offer access to the network • Over 270,000 companies are our corporate clients • Over 4,000 objects of commercial real estate in Moscow and Russian regions are connected to VimpelCom’s network • Beeline Business is the primary operator of the mainstream Internet for more than 300 ISP on territory of Russia, CIS and Baltic countries. International IP-network with the throughput of 170 GB/s has its own hubs in Stockholm, Frankfurt, Londonand New York * As of the end of Q1 2014

  4. VimpelComtoday • > 27,000 3G base station*/ 40% growth • ~ 90% of 3G base station were put into operation through high-speed channelsand support HSPA+* • > 141,000 km* — the length of the backbone network, capacity – 8,3Tbps • LTEnetwork was launched in Moscow, St. Petersburg, Astrakhan and Kaliningrad Regions, Republic Altai, Republic of Ingushetia, Republic of Kalmykia, Republic of Adygea and Republic of Chuvashia) • LTE traffic in Nazran and Elista exceeded 40% of the total traffic • In the Moscow Region*: • 4G/LTE dual-band network (2,600 MHz and 800 MHz) • Deployment of the infrastructure for 4G networks in the Moscow Region • 100% of 3G base stations were put into operation through high-speed channels • The number of 3G base stations increased by 2.3 times • The volume of traffic increased by 3.3 times • The average user data rate in the network exceeded 4 Mbit/s (according to the MQA study) * As of the end of Q1 2014

  5. Quality (Voice and Data) • Due MQA (Mobile Quality Analyzer)in 2013 the mobile data monitoring quality results: • Number 1 in average mobile data speed in 40% of regional branches including Saint-Petersburg, Moscow region, Novosibirsk, Rostov-on-Don, Samara, Ufa, Ekaterinburg • Average mobile data speed in 3G networkis 2,7Mbit/s • The confirmation of independent research DMTel companies: • The leading position of mobile data speed in 3G network in Saint-Petersburg, Yekaterinburg, Kaliningrad (December, 2013) • The top position in terms of the integrity of connections in Moscow city and the second position – mobile data speed in 3G network (> 4 Mbit/s) (February, 2014) • The leading positionofmobile data speed in 3G network of Moscow region (~ 7 Mbit/s) (February, 2014)

  6. History • 1992: foundation of VimpelCom Company • 1993: birth of Bee Line trademark. The first 200 subscribers • 1994: adaptation of network to DAMPS digital standard with TDM technology. 10,000 subscribers • 1996: JSCVimpelCom — the first Russian company registered at the New York stock exchange (NYSE) in 90 years • 1997: the first in Russia GSM-1800 network was launched under Bee Line brand. The first Bee Plus package. A unique service — national automatic roaming — is available • 1999: the Company becomes the first to launch GSM-900/1800 two-band network in Russia. Bee Line’s subscribers get access to roaming in 50 countries of the world. Bee Line makes revolution in communications market — mobile phones for $49 with initial $10 on account • 2000: Bee Line together with Nokia are the first to begin approbation of high-speed mobile Internet in the Central Region, and then together with Ericsson — the first to put WAP into commercial operation • 2001: Bee Line opens mobile communications era in metro. A universal system of BeePay bills payment is available. Start of regional expansion. GPRS Network and GPRS-roaming — the first in Russia — are launched • 2002: Bee Line is the first in Russia to launch MMS and BeeOffice (system of electronic subscribers’ servicing) • 2003: Bee Line network covers 55 regions and 10 million subscribers • 2004: entering the market of CIS countries, launching EDGE in Russia

  7. History • 2005: rebranding of the Company, changing the name of the trademark for Beeline. The unique “Living Zero” offer (possibility to accept intranet calls and SMS at zero balance) • 2006: Beeline roaming covers 200 countries. Launch of “So-obshchenie” tariff forhearing impaired persons, “Mobile translation” and “Mobile payment” services • 2007: obtaining 3G license • 2008: JSC VimpelCompurchases Golden Telecom and Corbina Telecom and enters the market of fixed telephony and wire BB. Home Internet from Beeline is available at the Russian market • 2009: roll-out of 3G networks in more than 40 cities of Russia. Launch of “Beeline TV” home digital TV service. The Company is the first in Russia to launch “Collect Call” service • 2010: VimpelCom Ltd. is created on the basis of VimpelCom and Kievstar. Special information resource www.safe.beeline.ru is launched for mobile fraud fight. Technology LTE is demonstrated for the first time • 2011: acquisition of Wind Telecom: VimpelCom becomes a global international player with the 6th largest base of clients in the world. The Company launches “Zero” zones in social networks, integrated M2M solutions, tests NFC technology, creates RURU universal payment system • 2012: obtaining LTE license, entering the LTE Union • 2013: launch of LTE network, start trading on the NASDAQ: VimpelCom shares will trade under the ticker symbol "VIP"

  8. Products and services Products and services for private clients • Mobile communications: a wide spectrum of tariff plans for pre-paid and post-paid payment systems subscribers, SMS and MMS messages • Internet: home Internet at a speed up to 100 Mbit/s is available in more than 100 Russian cities (using FTTB technology); mobile Internet for users of mobile phones, tablets and USB-modems (3G/HSPA+/WiFi/4G networks) • Television:home digital TV with broadcast management functions, over 240 TV channels and large library of video on demand (IPTV); mobile TV for owners of smart phones and tablets (Video-portal); Beeline TV mobile application for iOSand Android device owners implemented on OTT basis; availability of Beeline TV watching via Xbox • Fixed-linecommunications:home digital phone (on FTTB network basis) for making long distance and international calls at favorable prices • Mobile commerce: paying for services with the help of mobile phone (housing and municipal services, railway tickets, cinema tickets, access to the Internet, television, fixed-line home telephone, mobile communications) • Brand devices from Beeline:mobile phones, smart phones, tablets, USB-modems and WiFi-routers

  9. Products and services Products and services for business More than 70 products for business • Mobile communications: unlimited and flat-rate tariffs, international and long distance options, communications expenses management and control services, mobile mail and messages, mobile access to corporate resources, mobile Internet, mobile applications, M2M services for Russian and international companies, positioning services, BlackBerry and roaming • Fixed communications: stationary telephony, Internet, international and long distance communications, Data-center, intellectual communications services, managed services, audio and video conferences, SaaSservices and hardware • Convergent solutions: FMC/FMTN — a uniform network of office and mobile calls, Onnet tariffs, integrated virtual automatic telephone exchange • Networks and channel rent service: roll-out of corporate networks, rent of local, long distance and international channels

  10. Finance and operationalperformance for theQ12014

  11. Social responsibility Our priorities: • Technologies changing the world • available technologies for vulnerable population groups • support of hearing-impaired subscribers and help to handicapped persons in their integration into society • work with consumer risks (mobile fraud, safe Internet for children, “Web-landia” —recommended children’s Internet-resources service) • charity with 1 click: granting services in emergency • m-charity (partnership with “Gift of Life”, “Volunteers in help to children-orphans”, “Life Line”, “Rusfond” charitable foundations) • social partnership (partnership with “Liza Alert”) • GoGREEN (environmental protection and contribution to sustainable development): introduction of “green technologies”, ecological education and partnership • HR(investments into human capital): training and development program for young specialists, corporate volunteerism

  12. Awards and achievements • 1995: VimpelCom is in Top10 Moscow firms of “Russian Business Elite” catalogue • 1997: the 2nd place in “Press Advertising”nomination at the VII International festival of advertising • 1998: VimpelCom — The Company of the year 97 according to Russia Review magazine version • 1998, 2000, 2002: the 1st place at Brand of the year/EFFIE contest in various nominations; 2005: Brand of the year/EFFIE Grand prix • 1999: VimpelCom — the winner in “The Best service company of 1999” nomination of “The Company of the year” contest • 2000: federal prize “The Diligent taxpayer” • 2001: founder and president of VimpelCom D.Zimin becomes a laureate of “Business Olympus” award in “Business reputation” nomination • 2002: “The Best product of the year” according to PC Magazine version • 2003: “IT-Leader” (according to KROC, RBC and “Company” and “Intelligent Enterprise” magazines) • 2004: “The Best corporate governance” (IR Magazine) • 2005: The most expensive and successful brand in Russian trademarks rating according to Interbrand/Businessweek version • 2006: The Winner in threenominations (“Advertising Industry” magazine)

  13. Awards and achievements • 2006:The Best brand (Brandbuilding—2006) • 2006: The Beeline brand is again recognized as the Most expensive Russian trademark • 2007:Beeline is again recognized as the Most valuable brand of Russia • 2008:“HR-Brand of the year — 2007” in “Telecommunications, communications” nomination • 2008: Receiving of Rospatent certificate about Beeline trademark recognition as well-known mark in the Russian Federation • 2008: Winner in “The most creative marketing project” and “The most successful campaign from commercial success and return on marketing investments points of view” nominations at the 3rd annual conference of Adam Smith Institute • 2008:Beeline is for the 4th time recognized as “The most valuable brand of Russia” • 2010:Beeline is on the 205th place in Top 500 global brands rating (Top 500 global brands) according to The BrandFinance version • 2012: General Director of JSC VimpelCom A.Kudryashov won the first place in CEOs rating in the field of telecommunications according to Kommersant newspaper’s version (“Top 1000 of Russian managers — 2012” rating) • 2013:In March 2013, VimpelCom became the winner of the prestigious Crystal Garnituraaward in the contact centers industry, having won in the main nomination —“The best contact centre of the year” • 2013: A joint project by Beeline and Liza Alert, “Hotline to receive messages about missing children“, a winner of the PROBA-IPRA GWA 2013 award

  14. Strategic priorities for 2014 • Leader in positive changes in the client service sphere • Cultural transformation and internal optimization • Acceleration of internal processes, oriented at results • Achievement of a full parity on connection quality

  15. Management AndreyPatoka Executive Vice-presidentfor infrastructure development Mikhail Slobodin General Director Alexander PopovskyExecutive Vice-presidentfor business development at mass market NikolayIvanov Executive Vice-president, Chief Financial Officer PavelBorodin Executive Vice-presidentfor business support SergeyRubtsov Vice-president, Regional Director, Moscow Artem Nitc Vice-president for corporate strategy and business development Sergey Petrov Vice-president for corporate business development Natalia Albreht Vice-president for organizational development and HR

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