Slide 1: Strong Performance Across the Group - 1Q21 Results
VEON STRONG PERFORMANCE ACROSS THE GROUP 1Q21 RESULTS 29 April 2021 1
Slide 2: Agenda
AGENDA 1. OPENING Nik Kershaw 2. 1Q21 HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu Sergi Herrero 3. 1Q21 FINANCIAL RESULTS Serkan Okandan 4. 2021 PRIORITIES Kaan Terzioğlu 2
Slide 3: 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 “ma
Slide 4: Agenda
AGENDA 1. OPENING Nik Kershaw 2. 1Q21 HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu Sergi Herrero 3. 1Q21 FINANCIAL RESULTS Serkan Okandan 4. 2021 PRIORITIES Kaan Terzioğlu 4
Slide 5: 1Q21 Highlights
1Q21 HIGHLIGHTS Strong start to the year Revenue and EBITDA growth in local currency… …supported by operational achievements Revenue $1,989mn +4.3% YoY Total mobile customer 213mn +3.6mn YoY (-5.1% reported YoY) in local currency EBITDA $875mn +4.4% YoY 4G penetration 41% +10p.p. (-4.9% reported YoY
Slide 6: Infrastructure: Local dedicated business units to re-shape tower value proposition
INFRASTRUCTURE Local dedicated business units to re-shape tower value proposition RUSSIA PAKISTAN UKRAINE BANGLADESH 60 60 60 15.1K TOWERS 10.2K TOWERS 6.9K TOWERS 5.6K TOWERS • More than 50,000 towers, covering 680+ million people, representing 9% of the world's population • Leading footprint in so
Slide 7: Russia: After six quarters of work, revenue growth restored
RUSSIA After six quarters of work, revenue growth restored TOTAL REVENUE RUSSIA MOBILE CUSTOMERS AND 4G USERS TRENDS YOY PERFORMANCE LOCAL CURRENCY (%) (million) Russia Group Total Mobile Customers (LHS) 4G Users (RHS) 56 24 52 22 48 20 44 18 Feb-20 Feb-21 Jan-20 Dec-20 Apr-20 May-20 Jan-21 Oct-20 S
Slide 8: Russia: Solid execution on all fronts
RUSSIA Solid execution on all fronts IMPROVED NETWORK EXPERIENCE FOCUS ON LOYALTY IN PROMOTIONS IMPROVED CUSTOMER METRICS Churn rate improvements (quarterly %) -2.7p.p. YoY 12.7% 13.8% 9.5% 10.6% 10.0% 1Q20 2Q20 3Q20 4Q20 1Q21 Leading 4G coverage in Moscow and Mobile Number Portability turned positi
Slide 9: Russia: 4G country-wide upgrade plan continues to bear fruit
RUSSIA 4G Country-wide upgrade plan continues to bear fruit, enabling multiplay REVENUE EBITDA 4G USERS AND PENETRATION (RUB Billion) (RUB Billion) (Million and %) +1.4% YoY -4.8% YoY 48% 49% 46% 41% 42% 28.2 27.7 26.8 69.6 71.9 25.7 26.2 67.5 65.5 68.4 20.7 21.7 22.6 23.1 20.1 1Q20 2Q20 3Q20 4Q20 1
Slide 10: Kazakhstan: Record levels of 4G penetration
KAZAKHSTAN Record levels of 4G penetration key driver of performance REVENUE EBITDA 4G USERS AND PENETRATION (KZT Billion) (KZT Billion) (Million and %) +16.9% YoY +12.4% YoY 56% 54% 50% 32.5 44% 44% 54.5 53.7 50.9 26.9 27.7 46.0 46.4 24.6 25.3 4.8 5.2 5.3 4.2 4.2 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20
Slide 11: Ukraine: Growing 4G penetration supporting revenue and EBITDA
UKRAINE Growing 4G penetration supporting strong revenue and EBITDA trends REVENUE EBITDA 4G USERS AND PENETRATION (UAH Billion) (UAH Billion) (Million and %) +15.0% YoY +15.3% YoY 4.7 36% 38% 6.5 6.7 6.8 4.4 4.5 34% 6.0 6.0 4.0 4.1 30% 31% 8.8 9.3 9.7 7.8 7.8 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20
Slide 12: Pakistan: Healthy growth across all metrics
PAKISTAN Healthy growth across all metrics REVENUE EBITDA1 4G USERS AND PENETRATION (PKR Billion) (PKR Billion) (Million and %) +11.7% YoY +8.1% YoY 41% 38% 50.7 52.3 55.0 35% 49.3 31.4 30% 47.1 29% 22.9 23.2 24.7 21.7 28.7 22.2 25.0 17.7 19.1 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2
Slide 13: Pakistan: Jazz leads a high-growth strategic market
PAKISTAN Jazz leads a high-growth strategic market with vast digital opportunities Emerging market status since 224M (+2% p.a.) 64% < 30 years old 5th largest in the World 2017 - MSCI Top 11 fastest growing 59% 50M + countries - Goldman Sachs Literacy Rate Rising affluent middle class Top 10 Improve
Slide 14: VEON Ventures: 1Q21 achievements
VEON VENTURES 1Q21 achievements Financial Services eCommerce Entertainment 14.0mn 90k+ Active 3.3mn 1.2bn mins (+79% YoY) 60 Merchants in 60 60 Active Users 1Q21 13-fold +1,526% MAU, 524% YoY Growth watched in Q1, 71% growth from increase B2B Commerce Q4, 2020 701Bn PKR 11x increase in in total reve
Slide 15: Other Markets: Executing on 4G growth opportunities
OTHER MARKETS Executing on 4G growth opportunities UZBEKISTAN ALGERIA BANGLADESH GEORGIA & KYRGYSTAN • 60.0% 4G population • 61.0% 4G population • 67.3% 4G population • 90.2% 4G population coverage coverage coverage coverage • 19.5% YoY increase in • 18.3% YoY increase in • 67.2% YoY increase in • 7
Slide 16: Agenda
AGENDA 1. OPENING Nik Kershaw 2. 1Q21 HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu Sergi Herrero 3. 1Q21 FINANCIAL RESULTS Serkan Okandan 4. 2021 PRIORITIES Kaan Terzioğlu 16
Slide 17: 1Q21 Revenue: Continued growth in local currency
1Q21 REVENUE Continued growth in local currency TOTAL CONTRIBUTION TO YOY REVENUE GROWTH IN LOCAL CURRENCY IN 1Q21 REVENUE $2.0bln +4.3% YoY local currency -5.1% YoY reported Pakistan Ukraine Kazakhstan Russia Algeria Uzbekistan Bangladesh Other Group YoY local currency +11.7% +15.0% +16.9% +1.4% -5
Slide 18: 1Q21 EBITDA and Net Income
1Q21 EBITDA AND NET INCOME Project Optimum: progress on cost efficiencies EBITDA IN 1Q21 (USD million) EBITDA $875mn 55 22 6 -26 875 66 68 156 4.4% YoY 167 local currency 361 -4.9% YoY reported EBITDA NET MARGIN INCOME Russia Ukraine Pakistan Algeria Kazakhstan Bangladesh Uzbekistan Other HQ and Gro
Slide 19: 1Q21 Operational Cash Flow Build-Up
1Q21 OPERATIONAL CASH FLOW BUILD-UP Investment momentum continues OPERATIONAL CAPEX IN 1Q21 (USD million) OPERATIONAL CAPEX 21 12 2 1 425 26 $425mn 33 39 92 199 24.6% YoY local currency +15.4% YoY reported Russia Pakistan Ukraine Algeria Bangladesh Kazakhstan Uzbekistan Other HQ and Group eliminatio
Slide 20: 1Q21 Equity Free Cash Flow and Net Debt
1Q21 EQUITY FREE CASH FLOW AND NET DEBT EQUITY FREE CASH FLOW GENERATION IN 1Q21 (USD million) 875 -509 GROSS NET DEBT DEBT $9.5bln $8.3bln -110 -94 -74 -0.7% QoQ +4.2% QoQ -39 1 50 -64 reported -14 reported EBITDA Cash Capex Lease Net financial Net tax paid Working Other Equity Free License Equity
Slide 21: Group capital structure as at 31 March 2021
FINANCIAL RESULTS Group capital structure as at 31 March 2021 LEGEND: USD RUB PKR BDT UAH DZD EUR OTHER CASH GROSS DEBT1 NET DEBT1 CURRENCY MIX CURRENCY MIX CURRENCY MIX (AFTER HEDGING2) 4% 4% 3% 6% 6% 5% 3% 3% 51% 5% USD USD USD 39% 1.2bn 33% 7.6bn 58% 6.4bn 25% 55% DEBT MATURITY SCHEDULE1 USD BILL
Slide 22: FY 2021 Outlook
FY 2021 OUTLOOK Strong start to the year Increased FY2021 guidance for revenue and EBITDA Old FY 2021 New FY 2021 1Q21 Actual Guidance1 Guidance +4.3% YoY Total Revenue Low to mid-single- in local currency Mid-single-digit local digit local currency currency growth in growth in revenue and +4.4% YoY
Slide 23: Agenda
AGENDA 1. OPENING Nik Kershaw 2. 1Q21 HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu Sergi Herrero 3. 1Q21 FINANCIAL RESULTS Serkan Okandan 4. 2021 PRIORITIES Kaan Terzioğlu 23
Slide 24: FY 2021 Priorities: Executing on our priorities
FY 2021 PRIORITIES Executing on our priorities 1 4G network rollout ✓ 41% 4G penetration, +10p.p. YoY 2 Russia back to YoY growth ✓ +1.4% YoY in revenue; +0.3% QoQ in customers 3 Double-digit growth in Ukraine, Pakistan and Kazakhstan ✓ +13.4% YoY in aggregate in local currency 4 Build digital scale
Slide 25: Appendix
WK APPENDIX.
Slide 26: 1Q21 Highlights: Performances across our markets
1Q21 HIGHLIGHTS Performances across our markets REVENUE YoY EBITDA YoY (USD) In local currency (USD) In local currency GROUP 1,989 4.3% 875 4.4% RUSSIA 920 1.4% 361 -4.8% PAKISTAN 347 11.7% 156 8.1% UKRAINE 245 15.0% 167 15.3% ALGERIA 159 -5.1% 68 -7.1% BANGLADESH 135 -1.6% 55 -6.2% KAZAKHSTAN 128 1
Slide 27: Debt by Entity, March 2021
DEBT BY ENTITY1 31 MARCH 2021 USD MILLION EQUIVALENT Outstanding debt Type of debt Cash-pool Entity Bonds Loans overdrafts2 and Total other VEON Holdings B.V. 4,825 2,048 - 6,873 Pakistan Mobile Communications Limited - 446 - 446 Private Joint Stock Company Kyivstar - 148 - 148 Banglalink Digital Co
Slide 28: Reconciliation Tables
RECONCILIATION TABLES extract from VEON Ltd.’s Earnings Release RECONCILIATION OF CONSOLIDATED EBITDA RECONCILIATION OF CAPEX USD mln unaudited 1Q21 1Q20 Operational Capex 425 368 Additions of licenses 34 35 Difference in timing between accrual and payment for capital expenditures 114 46 Cash paid f
Slide 29: Reconciliation Tables
RECONCILIATION TABLES extract from VEON Ltd.’s Earnings Release RECONCILIATION OF ORGANIC AND REPORTED GROWTH RATES RECONCILIATION OF VEON CONSOLIDATED NET DEBT 1Q21 compared to 1Q20 Total Revenue EBITDA USD mln 31 March 2021 31 December 2020 30 September 2020 Local Forex and Local Forex and Net deb
Slide 30: Main Definitions
MAIN DEFINITIONS Capital expenditures (capex) are purchases of new equipment, new construction, upgrades, licenses, 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.