Slide 1: Q1 2019 Results
Q 1 2 0 1 9 R E S U LT S Amsterdam, 2 May 2019
Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking statements”, as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward- looking statements may be identified by words such as “m
Slide 3: Key developments
Key developments DELIVERING AGAINST OUR TARGETS: • Q1 2019 organic revenue growth of 7.4% and EBITDA organic growth of 10.3% achieved through strong operational performance and cost reduction • Cost intensity ratio declined organically by 1.9 percentage points, on track with three-year ambition to r
Slide 4: Good operational performance in Q1 2019
Good operational performance in Q1 2019 TOTAL REVENUE EBITDA EQUITY FCF EXCL. LICENSES2 $2.1bn +7.4% organic1 YoY Pre IFRS 16 and excl. exceptional income* $823m +10.3% organic1 YoY Pre IFRS 16 and excl. exceptional income** $205m -5.6% reported YoY +52.0% reported YoY $1,298m $457m Reported, post I
Slide 5: Revenue and EBITDA development by country
Revenue and EBITDA development by country USD MILLION (-5.6%) YoY reported 87 32 6 2 (3) (10) 51 (291) 2,415 2,250 2,124 1 Total reported Russia Pakistan Ukraine Bangladesh Algeria Uzbekistan Other Organic total FOREX Total reported revenue 1Q18 revenue revenue 1Q19 1Q19 (+52.0%) YoY reported 126 24
Slide 6: Revenue and EBITDA development by product
Revenue and EBITDA development by product Data revenue driving organic growth in revenue and EBITDA USD MILLION +7.4% YoY organic 17 27 (35) 156 (291) 2,415 2,250 2,124 1 Reported total Equipment & accessories Voice Data and MFS Other Organic total revenue FOREX Reported total revenue 1Q19 revenue 1
Slide 7: Russia: continued revenue and EBITDA growth
Russia: continued revenue and EBITDA growth • Total revenue growth of 4.4% YoY, driven by mobile service revenue growth TOTAL REVENUE MOBILE CUSTOMERS of 1.2% YoY and an increase of sales of equipment and accessories of 88% (RUB BILLION) (MILLION) YoY, as a result of the expansion in Beeline monobra
Slide 8: Pakistan: double-digit revenue and EBITDA growth continued in Q1 2019
Pakistan: double-digit revenue and EBITDA growth continued in Q1 2019 • The market remained competitive in the quarter, particularly in data and TOTAL REVENUE MOBILE CUSTOMERS social network offers, against which Jazz maintained its premium price (PKR BILLION) (MILLION) positioning + 23.6 % YoY + 5.
Slide 9: Algeria: revenue trend flattening out, driven by customer growth
Algeria: revenue trend flattening out, driven by customer growth • Q1 2019 saw continued competition in prices as well as channel-related TOTAL REVENUE MOBILE CUSTOMERS incentives (DZD BILLION) (MILLION) • Macroeconomic and regulatory challenges persisted: - 1.3 % YoY + 4.5 % YoY ► Economic slowdown
Slide 10: Bangladesh: continued positive trend in revenue, EBITDA turnaround
Bangladesh: continued positive trend in revenue, EBITDA turnaround • Revenue continued its positive trend (+4.5% YoY), with service revenue TOTAL REVENUE MOBILE CUSTOMERS growing by 5.4% YoY (BDT BILLION) (MILLION) ► Customer growth (+2.4% YoY) supported by improved distribution and +4.5% YoY + 2.4
Slide 11: Ukraine: sustained strong performance in a high growth market for data consumption
Ukraine: sustained strong performance in a high growth market for data consumption TOTAL REVENUE MOBILE CUSTOMERS (UAH BILLION) (MILLION) • Kyivstar sustained strong results in a growing market, driven by marketing activities and strong growth in data consumption + 20.2 % YoY - 0.7 % YoY • Mobile se
Slide 12: Uzbekistan: good operational performance, external costs pressuring results
Uzbekistan: good operational performance, external costs pressuring results TOTAL REVENUE MOBILE CUSTOMERS (UZS BILLION) (MILLION) • Uzbekistan market continued to be driven by increased mobile data - 13.3% YoY -6.2% YoY penetration. Unitel continues to focus on quality customers as the clear market
Slide 13: Q1 2019 income statement
Q1 2019 income statement USD MILLION 1Q19 1Q18 Reported YoY Organic1 1Q19 Pre-IFRS 16 Reported Pre-IFRS 16 YoY Revenue 2,124 2,124 2,250 (5.6%) 7.4% Service revenue 2,005 2,005 2,156 (7.0%) 5.5% EBITDA 1,298 1,172 854 37.3% 10.3% Depreciation, amortization and other (510) (401) (500) Operating Profi
Slide 14: Continued strong cash flow generation in Q1 2019
Continued strong cash flow generation in Q1 2019 USD MILLION INCLUDING IFRS 16 IMPACT, UNLESS STATED OTHERWISE (267) 1 319 1 4 (131) 82 44 854 (77) 69 132 457 380 204 Russia Pakistan Algeria Bangladesh Ukraine Uzbekistan Other countries Group OPCF Working capital Interest, tax Equity free IFRS 16 im
Slide 15: Q1 2019 net debt development
Q1 2019 net debt development USD MILLION 2,068 92 315 645 389 (1,172) 261 103 95 8,265 6,197 5,469 Net debt EBITDA Change in working Financial Taxes Cash capex incl. MTO Cash Dividend paid FOREX and Other Net debt IFRS 16 impact Net debt 1 31 December pre IFRS 16 capital charges licenses Collateral
Slide 16: 2019 targets confirmed
2019 targets confirmed 1Q 2019 FY 2019 actual targets3 7.4% Low single-digit Total revenue Organic growth1 organic1 growth ► Supported by cost efficiencies which are expected to 10.3% Low to mid single- result in an organic reduction of at least 1 percentage EBITDA Organic growth1 digit organic1 gro
Slide 17: Appendix
VEON APPENDIX
Slide 18: Q1 2019 revenue and EBITDA country trends
Q1 2019 revenue and EBITDA country trends Figures and trends in local currency, pre-IFRS 16 Revenue RUSSIA PAKISTAN ALGERIA BANGLADESH UKRAINE UZBEKISTAN (RUB BILLION) (PKR BILLION) (DZD BILLION) (BDT BILLION) (UAH BILLION) (UZS BILLION) +4.4 % + 23.6% - 1.3% +4.5% + 20.2% -13.3% YoY YoY YoY 15 YoY
Slide 19: Debt currency mix
Debt currency mix 1 • EUR and USD debt reduction via use of Italy proceeds • At the end of Q1 2019, the balance of USD debt swapped to RUB is ~USD 1.2 billion • Average cost of debt rose to 7.4% due to elimination of EUR debt and an increase in the relative share of RUB debt. The impact of higher av
Slide 20: Group debt maturity schedule
Group debt maturity schedule 1 31 MARCH 2019 USD BILLION HQ Pakistan Other GTH Russia Bangladesh Group debt maturity schedule 2.0 1.3 1.2 1.2 1.3 0.5 2019 2020 2021 2022 2023 2024 Group debt maturity schedule by currency – before considering fx forwards and excluding lease liabilities 2019 2020 2021
Slide 21: Liquidity overview
Liquidity overview GROUP CASH BREAKDOWN BY CURRENCY UNUSED RCF HEADROOM 31 MARCH 2019 31 MARCH 2019 Syndicated RCF facility USD 1.08 billion 16% USD 31% UNUSED CF HEADROOM PKR 8% 31 MARCH 2019 RUB EUR Pakistan – credit facilities PKR 14.3 billion (USD 0.10 billion) 10% UZS Other 12% 23% Total cash a
Slide 22: Debt by entity
Debt by entity 1 31 MARCH 2019 USD MILLION Outstanding debt Type of debt Cash-pool Entity Bonds Loans Total overdrafts2 VEON Holdings B.V. 2,079 2,811 26 4,916 GTH Finance B.V. 1,200 - - 1,200 PJSC VimpelCom 279 - - 279 Pakistan Mobile Communications Limited 12 509 - 521 Banglalink Digital Communica
Slide 23: Forex
Forex Guidance rates Average rates Closing rates FY 2019 1Q19 1Q18 YoY 1Q19 1Q18 YoY Russian ruble 66.00 66.13 56.88 (16.3%) 64.73 57.26 (13.0%) Algerian dinar 119.00 118.66 114.08 (4.0%) 119.42 114.14 (4.6%) Pakistan rupee 139.00 139.69 111.41 (25.4%) 140.79 115.71 (21.7%) Bangladeshi taka 84.00 83
Slide 24: Forex YoY impact on Revenue and EBITDA
Forex YoY impact on Revenue and EBITDA Revenue EBITDA Q1 2019 Q1 2019 Russia (170) (76) Algeria (8) (4) Pakistan (92) (47) Bangladesh (1) (1) Ukraine 0 0 Uzbekistan (2) (1) Other (18) (8) IFRS 16 impact 18 Total (291) (119) 1Q 2019 RESULTS 24