Form 6-K VimpelCom Ltd. For: Feb 25

“VimpelCom has delivered on its operational targets for 2014 and on its strategic objectives, despite a challenging environment across many of the markets in which we operate. Total revenue declined 4% organically year on year and EBITDA was 6% lower on the same basis, in line with our targets. Net debt to EBITDA was also in line with expectations. We have made substantial investments in the rollout of high speed data networks in an efficient way, spending 20% of our full year 2014 revenue. The reported results reflect the impact of substantial weakness in local currencies against the US dollar, however we have maintained an industry leading EBITDA margin of over 40%. Our customer base grew by 4.7 million to 221.6 million.

The majority of our operating businesses have demonstrated good progress over the year, with successful investments in high speed data networks leading to a much improved customer experience. We use the Net Promoter Score (“NPS”) system to measure our customer experience performance in each of our operating businesses, and I am pleased to report that we are the leaders in 5 of our markets, co-leader in 2 and we are seeing an improvement in 2 more of our businesses.

In Russia, the fourth quarter of 2014 saw a positive trend for the first time since the third quarter of 2013, with organic revenue growth of 3% year on year, as we delivered on our strategic plan. Mobile data revenue grew by 20%. EBITDA decreased 5% and the EBITDA margin fell to 36.6%, reflecting the negative effects of ruble weakness on direct costs and structural operating expenditure. Excluding foreign exchange effects, EBITDA would have been stable. We have continued to invest in our high speed data networks and the resulting improvement in customer experience was reflected in a 10 percentage points improvement in annualized churn and an increase in our mobile customer base to 57.2 million.

We have announced an agreement with MTS under which the companies will jointly plan, develop and operate 4G/LTE networks in Russia, bringing a further improvement in quality and availability of new services to our customers in a capital and cost efficient way.

Italy delivered a solid performance, in a continuing weak market. Fourth quarter organic mobile service revenue decreased 7% year on year, however this was a sequential improvement of 2 percentage points over the 3^rd quarter. WIND’s customer base declined 3%, mainly due to lower gross additions in the market and a decrease in the number of secondary SIM cards previously used for on-net calls, however overall customer market share in Italy has again increased. EBITDA declined reflecting the fall in revenue, and data revenue grew by 16%. WIND remains

the leader in customer satisfaction in the market. We have continued to invest in rolling out our 4G/LTE network and we now have 37% population coverage.

Our performance in the Africa & Asia Business Unit was impacted by weaker results in Algeria and Pakistan offsetting the strong performance in Bangladesh. In Algeria, Djezzy has maintained its strong market leadership position and leads in NPS. Fourth quarter organic service revenue declined 7% year on year, due to the earlier 3G launches by our competitors and aggressive price competition in the market. Underlying organic EBITDA decreased by 22% as a consequence of the large increase in frequency and network costs due to the roll out of 3G. Djezzy has now launched 3G services in 21 provinces including Algiers and other main cities and has received regulatory approval to launch new tariffs for both prepaid and postpaid customers. The recently announced transaction with the Fonds National d’Investissement (“FNI”) provides a more certain future for the business and enables us to start a full transformation program in Djezzy. In Pakistan, the 2G network modernization program has been completed. Service revenue grew 5% quarter on quarter, an improving trend. Customer growth slowed as a result of the Government’s requirement for biometric verification of all SIM cards, however Mobilink has maintained its customer market leadership position ending the year with 38.5 million customers. The company performed the fastest 3G roll-out in Pakistan and was the first to reach 2 million 3G customers. In Bangladesh, Banglalink had another strong quarter, gaining customer and service revenue market share. Organic service revenue growth was up 18% year on year and EBITDA growth was 38%. Data revenue increased 85% reflecting the first year of 3G services in the country. Banglalink’s leading NPS position in the market, was reflected in improving churn rates.

The transformation program that we announced for Kyivstar, in Ukraine, is making good progress despite the difficult operating environment. Kyivstar has maintained its market leadership and is the top rated operator in Ukraine for NPS, driven particularly by having the highest quality and most stable network, together with well perceived pricing initiatives. Service revenue declined organically by 2% year on year, with stable mobile service revenue. EBITDA was down 12% and the EBITDA margin decreased by 4.9 percentage points to 42.3%, mainly due to external factors such as a one-off charge relating to VAT expenses, the doubling of frequency fees, increase in electricity, maintenance and IT costs due to adverse currency movements. We are pleased to announce that we won a tender for a nationwide 3G license in Ukraine, where we see strong demand for mobile data services.

The cost of the license will be UAH 2.7 billion. The tender results are subject to final approval by the National Commission for the State Regulation of Communications and Informatization of Ukraine.

In our CIS Business Unit, Kazakhstan delivered solid results with mobile service revenue growing by 2% and fixed-line revenue by 17% year on year. Mobile data revenue growth was 42%. Customer market share grew 3% in the 4^th quarter, reflecting NPS leadership in the market. In the CIS Business Unit, underlying organic EBITDA growth was 3% with an EBITDA margin of 48.8%.

We have seen strong performances in many of our markets and we are benefitting from our network investment program and our focus on customer experience.

In April 2014, we announced that an agreement had been reached for Global Telecom Holding (“GTH”) to sell a 51% interest in Orascom Telecom Algérie SpA to the FNI. This transaction has now closed and the total net proceeds amounting to USD 3.8 billion, including dividends from OTA, have been used by GTH to pay down existing shareholder loans provided by VimpelCom. In July 2014, we also announced the completion of the second phase of the refinancing of our business in Italy. Taken together we anticipate that these actions will provide an annual enhancement to our net income of USD 0.5 billion.

Including our actions in Italy, we executed some USD 21 billion in financing activities in 2014, leading to a lower cost of debt and an improved maturity profile. Excluding our strong, standalone business in Italy, our net borrowings amounted to USD 6.7 billion, representing a net debt to EBITDA ratio of 1.2 times for the remainder of our businesses.

During the year, we have continued to execute on our portfolio review, disposing of our businesses in Canada, Central African Republic and Burundi.

We have also been focused on risk management and compliance across the group and are pleased with the progress we have made in these areas. In 2014, we re-assessed our approach and we have undertaken considerable change, establishing a more coordinated and expansive risk management and compliance framework. We have also added resources and ramped up training and awareness programs. We will continue to focus on this area of our business and view it as a critical part of our future development.

Our focus in 2015 will continue to be on improving the customer experience and further increases in our NPS. At the same time, we will keep a relentless focus on our costs, and we will seek further consolidation opportunities such as our network sharing agreement in Russia so that we can deliver better services in all of the markets where we operate. We expect the operating environment to remain difficult in 2015, however I am confident that we have the right strategy to deliver on our targets.

In 2015, we expect an improving organic trend in service revenue and we are targeting a flat to low single digit organic decline year on year. The EBITDA margin is expected also to be flat or slightly lower, and our target is for Earnings per Share to be between USD 0.35 and USD 0.40. We plan to continue our investments in high speed data networks to capture mobile data growth, which will result in a capital program of 20% of our revenue. Leverage for the total group is expected to increase to around 3.2 times net debt to EBITDA due to unfavorable currency movements. Excluding our stand alone business in Italy we expect the leverage to be approximately 1.7 times.”

SUCCESSFUL CLOSING OF ALGERIA TRANSACTION

On January 30, 2015, the Company announced the closing of the sale by GTH of a 51% interest in Omnium Telecom Algeria SpA (“OTA”) to the Algerian National Investment Fund, Fonds National d’Investissement (the “FNI”), for USD 2.6 billion. GTH will continue to exercise operational control over OTA and, as a result, both GTH and VimpelCom will continue to fully consolidate OTA. At closing, GTH terminated its international arbitration against the Algerian State initiated on April 12, 2012 and the parties settled the arbitration and all related claims. Total net proceeds, including OTA dividends in respect of the financial years 2008-2013 paid to GTH, amounting to approximately USD 3.8 billion net of all taxes and after settlement of all outstanding disputes between the parties, as well as the payment of associated fines, have been used by GTH to pay down existing shareholder loans provided by VimpelCom to GTH. VimpelCom intends to use these proceeds to pay down debt.

4G/LTE NETWORK SHARING IN RUSSIA

In the fourth quarter, VimpelCom Russia and MTS announced an agreement under which they will jointly plan, develop and operate 4G/LTE networks in Russia. Under the terms of the agreement, between 2014 and 2016 MTS will build and operate 4G/LTE base stations in 19 regions and VimpelCom will build and operate 4G/LTE base stations in 17 regions of Russia. Within the first seven years of the project, VimpelCom Russia and MTS plan to share base stations, platforms, infrastructure and resources of the transportation network with each operator maintaining its own core network. Additionally, the agreement does not limit strategic development and investment opportunities for either party, allowing both to pursue the construction of base stations to provide additional coverage for their respective customers.

4G/LTE LAUNCH IN GEORGIA

On February 1, 2015, Beeline Georgia launched its commercial 4G/LTE mobile services in 30 cities, covering more than 40% of the population, and providing user-speed mobile data services of up to 70 Mbit/s on the

800 MHz band. This launch marks a substantial technological leap from prior 2G directly to 4G/LTE. The commercial launch occurred just three days after Beeline received its license. 4G/LTE services are expected to significantly improve customer experience and give new impetus to the Beeline Georgia business through the development of mobile data services.

3G LICENSE AWARDED IN UKRAINE

Recently Kyivstar was awarded a nationwide 3G license in Ukraine for UAH 2.7 billion (~USD 100 million). The tender results are subject to final approval by the National Commission for the State Regulation of Communications and Informatization of Ukraine. The Company has been preparing its mobile network for 3G and as the clear market leader it expects to benefit from the launch of 3G services in the second half of 2015.

USD 1 BILLION CREDIT FACILITY

On November 19, 2014, VimpelCom signed a new credit facility with the China Development Bank and the Bank of China in the amount of USD 1 billion. The facility, which has a tenor of eight years, is unsecured and guaranteed by VimpelCom Amsterdam B.V. The newly signed credit facility is in addition to the USD 0.5 billion credit facility signed with the China Development Bank in December 2012. In FY14, the Company financed a total of USD 21 billion in debt, reducing the cost of debt and substantially extending its debt maturity schedule.

UZBEKISTAN INVESTIGATION

As previously reported, the SEC, the DOJ and the Dutch public prosecutor’s office are conducting investigations relating to the Company’s operations in Uzbekistan. The Company has cooperated, and continues to cooperate, with the authorities in these investigations. The Company is also exploring the prospect of resolving the Company’s potential liabilities arising from the facts established in the investigations. We are unable to predict the duration, scope or results of the ongoing investigations or how the results of these investigations and/or any resolutions may impact the Company’s business, results of operations or financial condition. The

Company expects to continue incurring costs related to the investigations, primarily professional fees and expenses, which may be significant. No provision relating to the investigations has been recorded in the Company’s unaudited financial results for the quarter and financial year ended December 31, 2014.

FOREIGN CURRENCY MANAGEMENT

The Company operates in many markets that have experienced a material depreciation of their local currency against the US dollar, especially in Russia and Ukraine. This has impacted the reported results substantially as the Russian ruble and the Ukrainian hryvnia depreciated against the US dollar by 72% and 97% respectively in 2014. The translation sensitivities to foreign exchange rates have been provided by the Company in previous quarterly earnings presentations. The Company has a hedging policy in place in which it hedges all its US dollar cash flow exposures six months forward, if feasible given regulations and market circumstances.

As expected, total revenue in 4Q14 declined organically by 3% YoY, mainly due to performance and macro economic developments in Ukraine and Pakistan, the rolling effect from the 2013 price competition in Italy and the delayed 3G launch in Algeria, partly offset by the revenue growth in Russia, Bangladesh and CIS.

Total mobile customers increased 4.7 million YoY to 221.6 million by the end of 2014, with the largest absolute contribution coming from a substantial increase in customers in the Africa & Asia Business Unit.

EBITDA decreased organically 8% YoY to USD 1.6 billion reflecting the decline in revenue, higher network costs in Russia, increasing frequency costs in Ukraine and Algeria, additional network costs due to 3G expansions in Algeria, Pakistan and Bangladesh. However, reported EBITDA increased 58% YoY mainly due to the provision in 4Q13 of USD 1.3 billion for the Bank of Algeria fine, while in 4Q14 a provision of USD 50 million related to the settlement with Cevital was recorded.

The Russian Business Unit achieved organic revenue growth of 3% YoY, the first YoY increase since 3Q13 as the investments in high speed data networks and improved

customer experience drove an increase in Net Promoter Score (NPS) and an improvement in churn. The customer base increased 0.7 million YoY. However, EBITDA decreased 5% YoYto RUB 27.0 billion , mainly due to the negative effect of the depreciation of the ruble against the US dollar which impacted costs, while network related costs also increased as a result of the accelerated high speed data network roll out. Excluding the negative effect of the weakened ruble, EBITDA would have been stable YoY. The Company expects the challenging macroeconomic environment will continue to pressure revenue and EBITDA margin in Russia in 2015.

In Italy, WIND delivered another quarter of solid performance in what remains a weak and challenging market. The effects of the intense price competition of 2013, the decline in pay-per-use SMS, and the lower customer base all impacted 4Q14 results. During the quarter, as already seen in the first nine months of the year, there was a reduction in gross additions in the market, as well as in the overall number of customers. However, WIND was again able to grow its customer market share. Mobile service revenue decreased 7% YoY in 4Q14 to EUR 746 million, representing a further

two percentage point sequential QoQ improvement. The YoY decline was the result of the aforementioned 2013 price pressure, SMS revenue contraction and the impact of the launch in 2014 of new MVNOs specifically focusing on the ethnic segment. WIND’s mobile data revenue grew 16% YoY to EUR 152 million, driven by a 16% YoY growth in mobile broadband customers to more than 10 million. The decline in EBITDA was mainly due to the pressure on revenue, partially offset by cost efficiency measures, which included an innovative insourcing and productivity improvement plan launched in September. Reported EBITDA margin was 37.3%, with an underlying¹ margin of 39.9%.

The performance of the Africa & Asia Business Unit was impacted by a slowdown in Algeria and Pakistan. As a result, revenue decreased 5% YoY organically to USD 788 million and EBITDA decreased 19% YoY organically to USD 326 million.

In Algeria, as expected, revenue declined 6% to DZD 34 billion due to the launch of 3G by competitors in December 2013, well ahead of Djezzy’s 3G launch in July 2014. Despite this, Djezzy maintained its leadership position. The closing of the transaction in Algeria enables the Company to start a full transformation program for the operations with increased investments in 2G and 3G and improved commercial offerings. However, the performance will not immediately improve, as competition remains intense following the introduction of 3G. In Pakistan, Mobilink completed its network modernization program in 4Q14 and secured its leading customer market share. In 4Q14, revenue was almost stable YoY at PKR 26 billion, an improving trend from previous quarters. In Bangladesh, banglalink again reported strong results following the successful turnaround with double-digit revenue and EBITDA YoY growth.

In Ukraine, good progress on the transformation announced in January 2014 has been made, despite the difficult operating environment, resulting in a leading position in NPS and improving operational trends. The ongoing situation in Ukraine and the resulting challenging environment led to more conservative spending behaviour by customers and a negative impact on Kyivstar’s financial results. Total revenue decreased 2% YoY to UAH 3.1 billion due to a decline in fixed-line revenue. Mobile service revenue increased slightly YoY to UAH 2.9 billion. EBITDA decreased 12% YoY to UAH 1.3 billion and EBITDA margin declined 4.9 percentage points YoY to 42.3%. These results were mainly due to external factors such as a one-off charge related to non-recoverable VAT expenses, doubled frequency fees starting from April 2014, increase in electricity tariffs and growth in maintenance and IT costs, which was mainly due to the effect of FOREX. Kyivstar continues to implement cost efficiency measures as part of the Operational Excellence program to support EBITDA margins. Kyivstar expects further improvement in customer experience after the recent award of a 3G license. Kyivstar has been preparing its mobile network to capture this market opportunity and expects to launch 3G services in the second half of 2015.

The CIS Business Unit delivered another quarter of good results driven by strong performance in Uzbekistan and solid results in Kazakhstan. The Company improved its market positions in most of the countries in the CIS despite a highly competitive environment. Total revenue increased 4% organically YoY and the customer base grew by 4% YoY. Mobile service revenue grew organically 4% YoY to USD 434 million driven by strong mobile data revenue organic growth of 24% YoY. In Kazakhstan, Beeline continued its successful turnaround and improved its market position against its main competitor despite the highly competitive market. EBITDA margin for the CIS Business Unit stood at 44.0%. Underlying EBITDA margin, excluding one-off charges, would have been 48.8%.

EBIT in 4Q14 was negative for USD 421 million, impacted by non-cash impairments amounting to USD 1.1 billion, including impairments of goodwill related to assets in Ukraine, Pakistan and Laos. The impairment on the assets in Ukraine was related to macroeconomic developments, an increase in inflation and foreign exchange rates forecasts. The impairment on the assets in Pakistan was related to macroeconomic developments, a need for more accelerated investments in 3G and weakened operational performance. The YoY comparison was positively impacted by the impairment in 4Q13 of USD 2.9 billion related to assets in Ukraine and Canada as well as the declining amortization applied to intangible assets associated with customer relationships as part of the Wind Telecom acquisition and adverse currency movements in 4Q14 and the accelerated depreciation in Pakistan in 4Q13.

Loss before tax in 4Q14 decreased 75% YoY to USD 1.0 billion. The YoY improvement was primarily the result of the lower impairments in 4Q14, lower financial expenses as result of the refinancing of Italy and positive fair value of derivatives, partly offset by higher foreign exchange losses, mainly due to depreciation of RUB against the USD.

Income tax expenses in 4Q14 decreased due to a decrease in withholding taxes on intercompany dividends from Russia and a decrease of taxable profit in Russia. The negative tax rate was impacted by non-deductible impairment losses. In addition, the effective tax rate in 4Q13 was negatively affected by the aforementioned non-deductible fine by the Bank of Algeria and the deferred tax liability on dividends from Algeria accounted for in the Financial Statements of 4Q13.

Net loss in 4Q14 decreased, mainly due to the significantly lower loss before tax, lower income tax charges, partly compensated by lower losses allocated to non-controlling interest.

CAPEX in 4Q14 decreased YoY to USD 1.2 billion due to depreciation of the RUB, EUR and UAH against the USD, more balanced spending throughout 2014, and the completion of 2G coverage and network modernization projects in Bangladesh in 3Q14. The Company plans to maintain its strategy to invest in high-speed data networks to capture mobile data growth, including the continued rollout of 4G/LTE networks in Russia and Italy and 3G networks in Algeria, Bangladesh, Pakistan and Ukraine.

Total assets decreased 11% QoQ in 4Q14 to USD 41 billion primarily as a result of the depreciation of RUB, EUR, UAH and DZD against the USD and impairments. Gross debt decreased 5% QoQ due to RUB and EUR depreciation against USD (for a detailed debt composition by the end of 2014, please see Appendix B “Debt Overview”). The Company’s cash position increased by 8% QoQ, mainly driven by positive operating cash flow and net proceeds from borrowings. Consequently, net debt decreased 8% QoQ to USD 20.0 billion and LTM EBITDA decreased by 7% QoQ, leading to the stable QoQ net debt to EBITDA ratio of 2.5x at the end of the fourth quarter.

Net cash from operating activities declined 30% mainly due to the decline in underlying EBITDA, one-off interest payments in Italy partly offset by lower income tax paid.

Net cash used in investing activities decreased mainly due to the lower YoY CAPEX in 4Q.

Net cash from financing activities improved YoY due to less borrowing repayments and fewer dividends in 4Q14 compared to 4Q13.

In order to reduce future cash interest payments, as well as future amounts due at maturity or upon redemption, we may from time to time seek to purchase our outstanding debt through cash purchases and/or exchanges for new debt securities in open market purchases, privately negotiated transactions or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

Total revenue declined 4% YoY organically, while reported revenue declined 13% due to the adverse impact of currency movements in 2014. Reported service revenue declined by 13% primarily as a result of the aforementioned currency movements as well as the impact of operational performance and macro-economic developments in Russia, Ukraine and Pakistan, the rolling effect from the 2013 price competition in Italy and the delayed 3G launch in Algeria. Organically service revenue declined 4% YoY.

In Russia, total revenue declined 3% YoY to RUB 282 billion, negatively impacted by the Company measures to eliminate unrequested services from content providers to Beeline customers, as well as lower sales from equipment. In Italy, total revenue was down 7% YoY to EUR 4.6 billion. The decrease was due to the persistent effect of cannibalization coming from the 2013 price competition, the reduction in the mobile customer base and the SMS substitution with OTT services. The Africa & Asia Business Unit realized a 4% YoY organic decline in revenue to USD 3.4 billion. In Algeria, total revenue declined 5% YoY to DZD 136 billion, due to the Company’s forced delayed commercial launch of 3G. In Pakistan, total revenue declined 6% to PKR 102 billion as a result of competitive pressure and a challenging regulatory environment with countrywide implementation of the biometric verification system leading to a YoY slowdown in customer base growth. Banglalink reported strong revenue growth of 11% YoY to BDT 44 billion in Bangladesh, which was driven by higher voice, interconnect and VAS revenue primarily due to strong YoY growth in the customer base, as well as strong mobile data revenue growth after the launch of 3G in 4Q13. The Ukraine business unit reported a 5% YoY

decline in total revenue to UAH 12 billion, mainly due to lower mobile voice revenue, due to customers switching to cheaper bundled tariff plans, and to the difficult environment in Ukraine, leading to more conservative spending behavior by customers. The CIS Business Unit continued to deliver solid performance with revenue increasing organically by 4% YoY to USD 1.9 billion, supported by strong results in Kazakhstan and Uzbekistan.

EBITDA decreased organically 6% YoY in line with FY14 target, and reported EBITDA declined 4%. The reduction in EBITDA was mainly due to the decline in revenue, increase in frequency fees, higher network costs as well as the impact on costs of adverse currency movements.

EBITDA in the Russia Business Unit decreased by 8% YoY to RUB 112 billion, mainly due the negative effect of the depreciation of the ruble against the US dollar, which impacted costs, the decline in service revenue, the increased demand-driven network investments and the expansion of owned monobrand stores. In Italy, EBITDA decreased 7% YoY to EUR 1.8 billion mainly as a result of the revenue decline. The EBITDA of the Africa & Asia Business Unit declined organically by 11% YoY to USD 1.5 billion. In the Ukraine Business Unit, EBITDA decreased by 11% YoY to UAH 5.5 billion, mainly driven by the revenue decline and cost pressures due to the doubled frequency fees and increased utility costs. EBITDA organic growth in the CIS Business Unit was 15%, reaching USD 0.9 billion due to strong results in Kazakhstan and Uzbekistan.

EBIT was impacted by impairment charges of USD 1.0 billion in FY14, compared to impairment charges of USD 2.9 billion in FY13, despite adverse local currencies against the USD in FY14.

Loss before tax for FY14 amounted to USD 181 million negatively impacted by foreign exchange losses due to local currency deprecations against the USD in almost all countries and one-off charges related to the refinancing of Italy.

Income tax expenses in FY14 were lower due to a decrease in withholding taxes on intercompany dividends from Russia and due to a decrease in non-deductible impairment losses. In addition, the effective tax rate in FY13 was negatively affected by the aforementioned non-deductible

fine from the Bank of Algeria and the deferred tax liability on dividends from Algeria accounted for in the Financial Statements of FY13.

Net loss for FY14 of USD 691 million as result of unfavorable foreign exchange movements, one-off costs related to the refinancing of Italy and impairments, more than offsetting the lower income tax expenses.

CAPEX, excluding licenses, in 2014 decreased slightly to USD 3.9 billion. However, CAPEX to revenue increased from 18% to 20%, following the Company’s strategy of investing in high speed data networks to capture mobile data growth, including the rollout of 3G and 4G/LTE networks in Russia, 3G networks in Algeria, Bangladesh and Pakistan, and continued investments in 4G/LTE in Italy.

The Russian Business Unit continued to execute on its plan in 4Q14, focusing on driving Customer Excellence and implementing a cultural shift to a customer-centric organization. As expected, the year-on-year trend for the Company improved in 4Q14 compared to the first nine months of 2014 despite the slowdown in the macroeconomic environment. The Company expects the challenging environment will continue to put pressure on revenue and EBITDA margin in 2015.

Total revenue grew organically 3% YoY, adjusted for the positive impact of currency movements. Total revenue increased 5% YoY to RUB 73.9 billion. Mobile service revenue increased 0.2% YoY to RUB 56.4 billion, the first increase since the Company took measures to eliminate unrequested services from content providers to Beeline customers. Beeline’s mobile customers increased YoY by 0.7 million as churn improved 10 percentage points YoY to an annualized rate of 63%. Mobile voice revenue was down YoY due to declining prices and the migration of customers to the Company’s new and more attractive bundled price plans. As a result, ARPU declined 1% YoY to RUB 325. The mobile voice revenue decline was partially offset by a 20% YoY increase in mobile data revenue to RUB 10.5 billion, which was driven by mobile data traffic growth that more than doubled YoY. Mobile financial services (MFS) revenue increased by 8% YoY to RUB 738 million.

Fixed-line service revenue increased 15% YoY to RUB 14.2 billion mainly due to FOREX impact on USD denominated contracts. The fixed-line broadband customer base was stable YoY at 2.3 million, while fixed-line broadband ARPU increased 6% YoY to RUB 477. The Company´s strategy in the fixed-line business continues to be centered on increasing profitability in regions where it currently has significant market share.

EBITDA decreased 5% YoY to RUB 27.0 billion and EBITDA margin decreased 3.7 percentage points YoY to 36.6%. The decrease was primarily due to the negative effect of the depreciation of the ruble against the US dollar on roaming, interconnect costs and structural OPEX.

Network related costs also increased as a result of the recent accelerated high speed data network roll out. Excluding the negative effect of the weakened ruble, EBITDA would have been stable YoY and EBITDA margin would have decreased 1.2 percentage points.

Beeline achieved continued improvements in customer perception during the quarter with a further narrowing of the gap to its competitors in NPS, improved churn, and growth in the customer base YoY. VimpelCom’s investments in its high speed data network resulted in a leading NPS in mobile Internet in 4Q14 in Russia.

To increase the use of MFS among Beeline customers and offer a broader range of services designed to attract new customers, Beeline started rolling out the Beeline Card in 2014 and upgraded it with a credit overdraft option in 4Q14. The Beeline card, co-branded with MasterCard, combines the use of mobile balances for product and service payments with a loyalty bonus, which can be used for calling or data purchases. At the same time, Beeline continued to offer data devices to stimulate mobile data growth. In addition to the earlier launched Beeline branded 3G and Alcatel co-branded 4G/LTE smartphone, the Company introduced the Beeline Tab, which was the top-selling tablet in Russia in November 2014, according to GFK Agency.

Beeline also continued to invest in high-speed data networks and is on track with its plans for the accelerated roll out of 4G/LTE. The Company launched 4G/LTE in 46 regions by the end of December, an acceleration supported by the partnership with MTS for joint development and operation of 4G/LTE networks. The Company also increased the number of 3G base stations by 18% YoY in 4Q14 to 31k. FY14 total CAPEX to revenues was 22% in Russia, in line with 2014 target, despite the significant depreciation of the ruble against the US dollar.

In 4Q14 WIND delivered a solid performance in what remains a weak and challenging market. The effects of the intense price competition of 2013, the decline in pay-per-use SMS and the lower customer base all impacted 4Q14 results. During the quarter, as already seen during the first nine months of the year, the market witnessed a reduction in gross additions and in the overall number of customers. The Company expects that the market will continue to stabilize.

Total revenue in 4Q14 decreased 9% YoY to EUR 1.1 billion. Underlying total revenue, net of the impact of the non-recurring revenue accounted in 3Q14, declined 5% YoY. Service revenue was down 7% confirming the improvement in trend versus the previous quarter driven by better performance in the mobile segment. The service revenue decrease was due to the persisting effect of cannibalization coming from the 2013 price pressure, the reduction in mobile customer base and the SMS substitution with OTT services.

Mobile service revenue decreased 7% YoY in 4Q14 to EUR 746 million, displaying a further 2 percentage points sequential QoQ improvement, affected by the aforementioned 2013 price pressure, SMS revenue contraction and the impact of the launch in 2014 of new MVNOs specifically targeting the ethnic segment. WIND’s mobile data revenue grew 16% YoY to EUR 152 million, driven by a 16% YoY growth in mobile broadband customers to more than 10 million.

In 4Q14, WIND’s mobile customer base declined YoY to 21.6 million mainly due to lower gross additions in the market and a decrease in the number of secondary SIM cards previously used for specific on-net calls. Despite the reduction of its customer base WIND was able to further increase its customer market share.

In 4Q14, mobile ARPU declined 4% YoY to EUR 11.4 with data ARPU reaching 40% of total mobile ARPU, partially offsetting the decline in voice ARPU.

In the fourth quarter WIND confirmed its leadership in terms of customer satisfaction and NPS leading to a churn improvement both YoY (1.9 p.p.) and QoQ (0.4 p.p.).

In fixed-line, service revenue decreased 9% YoY to EUR 292 million mostly due to the decline in the less profitable indirect customer base and continued decline in voice volumes resulting from fixed to mobile substitution. Fixed broadband revenue increased 4% YoY to EUR 140 million with both broadband LLU customers and dual play customers growing by 2% YoY.

WIND’s reported EBITDA in 4Q14 decreased 16% YoY to EUR 418 million. On an underlying basis, net of the impact of the non-recurring items accounted for in 3Q14 but commercially related to 4Q14, the EBITDA trend continued to improve sequentially to minus 6.5% YoY (3Q14 -7.3%; 2Q14 -8.4%). The decline in EBITDA was mainly due to the pressure on revenue, partially offset by cost efficiency measures, which included an innovative insourcing and productivity increase plan launched in September. Reported EBITDA margin was 37.3%, with an underlying margin of 39.9%.

In 2014, WIND invested EUR 757 million in expanding its 4G/LTE coverage, as well as in increasing the capacity and coverage of the existing HSPA+ network. In line with the strategy of being a smart and fast follower, WIND 4G/LTE coverage reached 37% of the population at the end of 2014.

In 4Q14, as expected, VimpelCom improved its strong number two market position in Bangladesh and secured its leading market position in Pakistan. In January 2015, VimpelCom announced the successful closing of the transaction in Algeria, the sale of a 51% interest to the Fonds National d’Investissement (the “FNI”). The partnership with the FNI strengthens Djezzy’s position and prospects with greater opportunities to build and strengthen its operation in Algeria. The closing enables the Company to start a full transformation program in Djezzy.

The double-digit revenue growth in Bangladesh and improving trend in Pakistan was more than offset by the market challenges and competitive pricing in Algeria, resulting in a revenue decrease in the Africa & Asia Business Unit of 5% YoY to USD 788 million. Reported revenue declined 9% YoY due to the additional impact of currency devaluation in Algeria. Mobile data revenue growth was strong in all markets, increasing organically 22% YoY. The customer base in the Africa & Asia business unit increased 4% YoY to 90 million driven by strong growth in all countries, particularly in Bangladesh.

EBITDA decreased organically 19% YoY as EBITDA was negatively impacted by higher network costs and higher frequency fees in Algeria. On a reported basis, EBITDA decreased 21% to USD 326 million, resulting in an EBITDA margin of 41.4%.

CAPEX in 2014 almost doubled compared to the previous year to USD 1.2 billion, due to the 3G network roll out in Algeria, Bangladesh and Pakistan as well as the investments in the network modernization in Pakistan. The Company continues to invest in high-speed data networks in all three markets to capture mobile data growth.

The following analysis of the performance in the operating units is in local currencies except when stated otherwise.

ALGERIA (“DJEZZY”)

In 4Q14, Djezzy’s revenue decreased 6% YoY, mainly due to the Company’s delayed commercial launch of 3G. Following the launch in July 2014, Djezzy grew its mobile

customer base by 5% YoY to 18.4 million in 4Q14, the second consecutive quarter of growth. In total Djezzy had 1.2 million 3G customers at the end of 2014.

The market remained challenging in 4Q14 with continued aggressive price competition, resulting in a service revenue decline of 7% YoY. Mobile ARPU decreased 12% YoY due to the churn of high-value customers as a result of the delayed 3G services. Djezzy launched a new prepaid offer “Go”, which achieved encouraging uptake. Djezzy also launched an unlimited postpaid offer “Infinity” at the end of December, which was supported by OTT partnerships with WhatsApp, Opera Mini and the 3G “Be-Djezzy” applications. Mobile data revenue increased by 36% QoQ.

EBITDA, excluding 4Q13 and 4Q14 adjustments of the Algeria transaction, decreased 22% YoY, adversely impacted by higher network costs, due to the 3G roll-out, higher frequency costs and HR costs.

The investments in the high-speed 3G network increased CAPEX to USD 415 million in FY14 and CAPEX to revenue has also grown from 5% to 25%. Currently, Djezzy’s 3G services are available in 21 provinces, including the largest four provinces in terms of population.

Philip Tohme, CEO of OTA, will be departing Djezzy at the end of February. Vincenzo Nesci, Executive Chairman of OTA, will assume his responsibilities.

PAKISTAN (“MOBILINK”)

In 4Q14, Mobilink completed its 2G network modernization, improving the capacity of its network and secured its leading customer market share.

Mobilink’s revenue decreased 1% YoY mainly due to lower VAS revenue, resulting from management’s decision to shift to a fully transparent charging regime, and lower voice revenue, due to price competition. Mobilink’s service revenue increased 5% QoQ and decreased 2% YoY, showing an improved YoY trend. Mobile data revenue increased by 58% YoY due to attractive data bundles, promotions with free trial periods, iPhone6 launch and 3G network expansion. MFS revenue increased four times due to successful retail

promotions along with increased active agent base and footprint. MFS now represents 2% of total service revenue. In addition, Mobilink made a strategic decision to exit from the International Clearing House (ICH), which resulted in higher international incoming revenue in 4Q14. Consequently, the increase in data, MFS and international incoming revenue offset the decline in voice and VAS revenue.

ARPU decreased 7% YoY due to price dilution in an aggressive market as competitors actively matched offers. The customer base increased 2% YoY. Mobilink maintains a policy of price simplicity and transparency, consequently closing the gap in NPS for four quarters in a row.

EBITDA increased slightly YoY to PKR 10 billion, mainly due to a one-off adjustment related to intercompany charges between Mobilink and GTH in 4Q13.

CAPEX in FY14 almost doubled to USD 352 million, mainly due to the 2G network modernization and 3G roll out.

The government put in place additional security measures after the terrorist attack on a school in Peshawar, in particular biometric verifications for all mobile subscriptions, which requires verification of all existing customers. Consequently, customer growth is expected to slow down in 2015.

BANGLADESH (“BANGLALINK”)

Banglalink continued to improve its market position in 2014, demonstrating strong performance with double-digit YoY growth.

In 4Q14, Banglalink’s revenue increased 14% YoY driven by a growth in ARPU of 10% YoY and 7% YoY growth in customer base to 30.8 million. Banglalink maintained its leading NPS in the market. The superior customer experience is a result of attractive 3G offers and affordable smartphone promotions. Since the 3G launch a year ago, data revenue has increased 85% YoY in 4Q14. This is the result of the widest 3G network in the country and attractive data bundles, which enabled data traffic monetization.

EBITDA increased 38% YoY driven by revenue growth and savings on customer acquisition costs due to the optimization of the distribution.

CAPEX increased YoY in FY14 to USD 178 million, as 2G coverage and modernization projects along with the 3G network rollout were completed in 2014.

The ongoing situation in Ukraine and the resulting challenging environment led to more conservative spending behavior by customers and a negative impact on Kyivstar’s financial results. Despite the situation, the Company made good progress on its transformation program and continued to deliver on its plans of improving customer satisfaction and strengthening its market position. Kyivstar increased its customer base YoY driven by the best quality and most stable network, favorable pricing initiatives, and the leading NPS in the market. Annualized churn continued its positive trend during the fourth quarter, improving by 7 percentage points YoY to 27%, despite the negative effect on churn from the disconnection of Crimea customers due to the network shutdown.

Kyivstar has been awarded a 3G license and won 2x 15 MHz in the 2,100 MHz bandwidth. The license fee amounts to UAH 2.7 billion (~USD 100 million) and the license term is 15 years. The tender results are subject to final approval by the National Commission for the State Regulation of Communications and Informatization of Ukraine. The Company expects further improvement in customer experience. Smartphone penetration in the customer base was already at 23% at the end of 4Q14, providing strong fundamentals for attractive mobile data revenue growth going forward. Kyivstar has been preparing its mobile network to capture this market opportunity and expects to launch 3G services in the second half of 2015.

Total revenue decreased 2% YoY to UAH 3.1 billion due to a decline in fixed-line revenue. Mobile service revenue was stable YoY at UAH 2.9 billion positively impacted by increased interconnect revenue, as well as 7% YoY mobile data revenue growth to UAH 256 million, which was offset by declines mobile voice, guest roaming and VAS revenue due to more conservative customer spending behavior and fewer tourist visits to Ukraine, as well as the negatively impact from the situation in Crimea.

Kyivstar’s mobile customer base increased 2% YoY to 26.2 million driven by YoY churn improvement and successful customer acquisition as a result of the Company’s high quality and stable mobile network. Mobile ARPU declined 1% YoY to UAH 36 mainly due to more conservative spending behavior by customers.

Fixed-line service revenue decreased 20% YoY to UAH 225 million due to a decrease in transit traffic termination, which was partly offset by the growth in fixed residential broadband (FTTB) revenue, which continued to outgrow the market, increasing 4% YoY to UAH 111 million. This increase was driven by 7% growth YoY in the fixed broadband customer base to 813 thousand, which was partially offset by a decline in fixed broadband ARPU of 5% YoY to UAH 46.

EBITDA decreased 12% YoY to UAH 1.3 billion and EBITDA margin declined 4.9 percentage points YoY to 42.3%. This decline was mainly attributable to external factors such as a one-off charge related to non-recoverable VAT expenses, frequency fees having doubled in April 2014, an increase in electricity tariffs, and growth in maintenance and IT, mainly due to the effect of FOREX. Excluding the one-off VAT charge, EBITDA would have decreased by 5% YoY and EBITDA margin would have been 45.6%. The Company continues to implement cost efficiency measures as part of the Operational Excellence program to support EBITDA margins.

Kyivstar continued modernizing its network to prepare for 3G and future mobile data growth in 2014. FY14 CAPEX was stable YoY at UAH 1.7 billion and was only 14% of revenue. Operating cash flow in FY14 was 32%.

The Company expects that the environment will remain challenging.