Slide 1: 3Q22 Trading Update
VEON 3Q22 TRADING UPDATE STRONG REVENUE PERFORMANCE GAINING MARKET SHARE AS COUNTRIES EXECUTE ON DIGITAL OPERATOR STRATEGY 03 November 2022 Amsterdam 1 1
Slide 2: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 2 2
Slide 3: Notice to Readers: Impact of the Conflict
NOTICE TO READERS: IMPACT OF THE CONFLICT The ongoing conflict between Russia and Ukraine and the sanctions imposed by the United States, member states of the European Union, the European Union itself, the United Kingdom, Ukraine and certain other nations, counter-sanctions by Russia and other legal
Slide 4: Disclaimer
DISCLAIMER VEON’s results presented in this presentation are, unless otherwise stated, based on IFRS and have not been externally reviewed and audited. The financial information included in this presentation is preliminary and is based on a number of assumptions that are subject to inherent uncertai
Slide 5: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 5 5
Slide 6: 3Q22 Highlights
3Q22 HIGHLIGHTS TOTAL SERVICE 4G REVENUE REVENUE USERS $2,077mn $1,968mn 107mn +3.6% YoY +7.9% YoY +15.1% YoY +3.4% YoY +7.8% YoY local currency local currency Equipment revenue in Mobile ARPU up YoY in local Subscriber base +0.8% YoY Russia down 58.5% YoY due currency across all markets 4G penetrat
Slide 7: 4G Growth Driving Data & Digital Revenues
4G GROWTH DRIVING DATA & DIGITAL REVENUES Growth in customer base Steady growth in 4G Steady growth in data and uptake digital revenues1 203.2mn subscribers 4G users and penetration Data and digital revenues, YoY trends (3 month active, million and %) (USD million and % in local currency) +0.8% YoY
Slide 8: Digital Operator Strategy Delivering Results
DIGITAL OPERATOR STRATEGY DELIVERING RESULTS Growing customer engagement and retention Multiplay customers (B2C)1 ARPU Multiple TCH PLAY WA Single play and no play revenue Double play revenue Multiplay revenue EN ST 4,3x OR 3,3x T LIS Share of multiplay customers E 1,0x 1440 Voice only 2play 4G Mult
Slide 9: Group Service Revenue Growth +7.1% YoY in Local Currency
GROUP SERVICE REVENUE GROWTH +7.1% YOY IN LOCAL CURRENCY PAKISTAN KAZAKHSTAN UZBEKISTAN BANGLADESH +11.3% Service revenue +23.2% Service revenue +22.5% Service revenue +11.8% Service revenue -6.8% EBITDA +9.2% EBITDA +7.9% EBITDA -2.1% EBITDA UKRAINE KYRGYZSTAN RUSSIA +5.1% Service revenue +15.8% Se
Slide 10: Ukraine
UKRAINE Keeping Ukraine connected and rebuilding the country’s infrastructure 3Q22 RESULTS YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (UAH Billion and %) (3 month active, million and %) Revenue share Share of monthly active users TOTAL SERVICE +5.1% 50% +1
Slide 11: Russia
RUSSIA Higher customer value drives service revenue and EBITDA growth 3Q22 RESULTS YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION1 CUSTOMERS (RUB Billion and %) (3 month active, million and %) Revenue share Share of monthly active users TOTAL SERVICE +2.2% 53% 60% -7.6%
Slide 12: Pakistan
PAKISTAN 4G users exceed 40 million supporting double digit top line growth 3Q22 RESULTS YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (PKR Billion and %) (3 month active, million and %) Revenue share Share of monthly active users TOTAL SERVICE +11.3% 54% 47%
Slide 13: Kazakhstan
KAZAKHSTAN Sixth consecutive quarter of revenue YoY growth above 20% 3Q22 RESULTS YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (KZT Billion and %) (3 month active, million and %) Revenue share Share of monthly active users TOTAL SERVICE +23.2% 69% 62% +23.2%
Slide 14: Bangladesh
BANGLADESH Gaining market share as double-digit topline growth continues 3Q22 RESULTS YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (BDT Billion and %) (3 month active, million and %) Revenue share Share of monthly active users TOTAL SERVICE 23% +11.8% REVENU
Slide 15: Uzbekistan
UZBEKISTAN Third consecutive quarter of 20%+ topline YoY growth 3Q22 RESULTS YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (UZS Billion and %) (3 month active, million and %) Revenue share Share of monthly active users +22.5% TOTAL SERVICE 64% 57% REVENUE REV
Slide 16: Digital Products and Partnerships
DIGITAL PRODUCTS AND PARTNERSHIPS Driving our Digital Operator strategy JAZZCASH SIMPLY BEEPUL FINTECH 16.7mn PKR 3.9tn 159k KZT 561mn 252k UZS 3.7tn Monthly LTM Gross Monthly Gross Transaction Monthly LTM Gross active users Transaction Value active users Value active users Transaction Value +20.0%
Slide 17: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 17 17
Slide 18: 9 Months 2022 Highlights
9 MONTHS 2022 HIGHLIGHTS TOTAL SERVICE EBITDA REVENUE REVENUE $5,908mn $5,533mn $2,576mn +3.0% YoY +4.7% YoY +2.8% YoY +6.4% YoY +8.2% YoY +6.7% YoY local currency local currency local currency Solid local currency Good momentum in Strong growth in local revenue performance local currency service cu
Slide 19: 3Q 2022 Highlights
3Q 2022 HIGHLIGHTS TOTAL SERVICE EBITDA REVENUE REVENUE $2,077mn $1,968mn $889mn +3.6% YoY +7.9% YoY 0.0% YoY +3.4% YoY +7.8% YoY +0.7% YoY local currency local currency local currency Equipment revenue in Good momentum in Balanced EBITDA Russia down 58.5% YoY due local currency service performance
Slide 20: 3Q22 Revenues
3Q22 REVENUES Encouraging service revenue trends across the group REVENUE IN 3Q22 61 (5) 3Q22 results YoY trends (USD million) 166 144 13 219 289 164 TOTAL 1.026 2.077 REVENUE $2,077bn +3.6% Russia Russia Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and Group (Telecom) (Non elimin
Slide 21: 3Q22 EBITDA and EBITDA Margin
3Q22 EBITDA AND EBITDA MARGIN Balanced EBITDA performance across the Group EBITDA IN 2Q22 28 5 (37) 3Q22 results YoY trends (USD million) 85 53 120 126 510 EBITDA 889 $889mn 0.0% Russia Ukraine Pakistan Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and Group eliminations +0.7% local currency Local
Slide 22: 3Q22 Financial Update
3Q22 FINANCIAL UPDATE Continued focus on improving group liquidity 30 Sep 2022 vs. 30 Jun 2022 CASH • Total cash USD 3.3 billion, with USD 2.6 billion held at the HQ level • Operations largely self funding LEVERAGE LEVERAGE DEBT INCL. LEASES EXCL. LEASES • Average cost of debt 6.8%, up 50bp YoY main
Slide 23: Debt and Liquidity as of 30 September 2022
DEBT AND LIQUIDITY AS OF 30 SEPTEMBER 2022 Only 30% of net debt including leases is USD-denominated DEBT AND CASH CURRENCY MIX NET DEBT AND LEASES CURRENCY MIX GROSS DEBT CASH NET DEBT CAPITALIZED LEASES (EXCLUDING LEASES) (EXCLUDING LEASES) 2% 2% 1% 1% 0% -2% 4% 3% 0% 1%1% 3% 8% 11% 4% 10% 8% 7% 30
Slide 24: Russia's Debt and Liquidity as of 30 September 2022
RUSSIA’S DEBT AND LIQUIDITY AS OF 30 SEPTEMBER 2022 Balanced leverage excluding leases DEBT AND CASH NET DEBT AND LEASES GROSS DEBT CASH NET DEBT CAPITALIZED LEASES1 (EXCLUDING LEASES) (EXCLUDING LEASES) USD USD USD USD 2.5bn 0.3bn 2.2bn 2.3bn Total gross debt incl. leases Leverage 1.50x Post-IFRS 1
Slide 25: Debt Maturity
DEBT MATURITY Sufficient cash to cover debt repayments for the next 12 months Operating companies DEBT MATURITY SCHEDULE AS OF 30 SEPTEMBER 2022 Headquarters (other) Headquarters (RCF) (USD billion) 3.25 USD RUB PKR BDT UAH OTHER RCF (USD equivalent) 0,69 2,45 1,59 1.01 1,36 1,34 1,28 0,62 0,97 0,97
Slide 26: Debt Management Update
DEBT MANAGEMENT UPDATE AVERAGE COST OF DEBT • Debt cost reflects blended rate of borrowings across our basket of (%) different currencies, mainly USD, RUB and PKR (average USD cost 4.6%) 7,7% 6,9% 7,0% 6.8% 5,9% 6,1% 6,3% • The lower cost of debt vs. 2Q22 is driven by the decrease in Russia’s key ra
Slide 27: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 27 27
Slide 28: Current Priorities
CURRENT PRIORITIES Supporting employees and customers impacted by the conflict 1 Protecting our people at home and abroad Global operator providing essential data and connectivity 2 Keeping our customers connected services everywhere we operate Group liquidity at USD 3.3bn, 2.6bn held at HQ level, a
Slide 29: Q&A
VEON 3Q22 TRADING UPDATE Q&A 29 29
Slide 30: Thank You!
VEON 3Q22 TRADING UPDATE THANK YOU! ir@veon.com Tel: +31 (0)20 79 77 200 30 30
Slide 31: Appendix
VEON 3Q22 TRADING UPDATE APPENDIX 31 31
Slide 32: Debt by Entity
DEBT BY ENTITY1 30 SEPTEMBER 2022 (USD MILLION EQUIVALENT) Outstanding debt Type of debt Cash-pool Entity Bonds Loans overdrafts and Total other VEON Holdings B.V. 4,883 973 - 5,856 PJSC VimpelCom 8 1,568 - 1,576 Pakistan Mobile Communications Limited - 660 - 660 Banglalink Digital Communications Lt
Slide 33: Lease Liabilities (Principal)
LEASE LIABILITIES (PRINCIPAL) USD, million Local currency, million 30 September 2022 30 June 2022 30 September 2022 30 June 2022 Russia 2,328 2,796 133,652 143,038 Pakistan 219 230 49,980 46,862 Ukraine 128 154 4,694 4,520 Bangladesh 315 297 31,880 27,675 Kazakhstan 56 56 26,493 26,131 Uzbekistan 33
Slide 34: Debt Maturity Schedule 2022-2023
DEBT MATURITY Debt maturity schedule 2022-2023 as of 30 September 2022 DEBT MATURITY SCHEDULE 2022 – 2023 (Millions) Maturity period Oct 2022 Nov 2022 2022 other Feb 2023 Mar 2023 Apr 2023 Sep 2023 Dec 2023 2023 other Outstanding debt, 610 363 21 529 26 700 26 21 54 USD equivalent Outstanding debt,
Slide 35: Ukraine
UKRAINE REVENUE EBITDA1 4G USERS AND PENETRATION (UAH Billion) (UAH Billion) (Million and %) 50% +5.2% YoY -10.7% YoY 49% 44% 46% 47% 40% 4,8 4,9 4,8 4.9 4.6 7,7 4.4 7,3 7,5 7,9 7,4 7,1 11,6 12,1 12,7 11,6 12,1 10,3 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21 1Q22 2Q22
Slide 36: Russia
RUSSIA REVENUE EBITDA 4G USERS AND PENETRATION1 (RUB Billion) (RUB Billion) (Million and %) -6.1% YoY +7.3% YoY 58% 60% 53% 55% 56% 51% 69,6 75,3 77,5 72,2 69,1 70,7 27,3 27,6 29,3 30,3 26,3 28,2 24,2 25,4 25,5 25,3 25,4 25,7 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21
Slide 37: Pakistan
PAKISTAN REVENUE EBITDA 4G USERS AND PENETRATION (PKR Billion) (PKR Billion) (Million and %) 54% +12.0% YoY -6.8% YoY 49% 51% 47% 48% 44% 57.2 60,1 63,5 64,2 28,4 28,1 29,7 57,3 59,4 26,6 26,5 24.8 36,7 38,2 40,6 33,8 35,0 30,8 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q
Slide 38: Kazakhstan
KAZAKHSTAN REVENUE EBITDA1 4G USERS AND PENETRATION (KZT Billion) (KZT Billion) (Million and %) +23.1% YoY +9.2% YoY 69% 67% 69% 39.1 62% 64% 35.8 40,2 59% 36.8 70,7 78,7 30,8 63,9 66,0 64,4 58,9 30.2 6,7 7,1 7,2 5,7 6,1 6,3 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21
Slide 39: Bangladesh
BANGLADESH REVENUE EBITDA 4G USERS AND PENETRATION (BDT Billion) (BDT Billion) (Million and %) -2.1% YoY 41% +11.6% YoY 37% 33% 34% 35% 5,2 5,2 5,1 29% 4,8 4,7 4,9 13,2 13,8 12,4 12,3 12,4 11,8 15,0 12,0 12,5 13,5 9,9 11,4 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21 1Q
Slide 40: Uzbekistan
UZBEKISTAN REVENUE1 EBITDA2 4G USERS AND PENETRATION (UZS Billion) (UZS Billion) (Million and %) +22.4% YoY +7.9% YoY 62% 62% 62% 57% 61% 54% 502.0 664.7 580,8 620,0 495,2 543.0 544,7 280.7 292,0 302.8 240,1 4,7 4,8 4,8 3,9 4,3 3,6 189,0 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 2Q
Slide 41: Reconciliation Tables
RECONCILIATION TABLES Extract from VEON ltd.’s Earnings Release RECONCILIATION OF LOCAL CURRENCY AND REPORTED GROWTH RATES - 3Q22 COMPARED TO 3Q21 Total Revenue EBITDA Forex and Forex and Local currency Reported Local currency Reported Other Other Russia (6.1%) 22.2% 16.1% 7.3% 25.4% 32.7% Pakistan
Slide 42: Definitions
DEFINITIONS 4G users are mobile customers who have engaged in revenue-generating activity during the three months prior to the measurement date as a result of activities over fourth-generation (4G or LTE – long term evolution) network technologies. ARPU (average revenue per user) measures the monthl