Slide 1: Q1 2017 Results
Q1 2017 RESULTS Amsterdam, 11 May 2017 Jean-Yves Charlier - Chief Executive Officer Andrew Davies – Chief Financial Officer
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 “ma
Slide 3: Highlights Q1 2017
Highlights Q1 2017 VEON reports double digit revenue and EBITDA Free float increased to 24.1% after Telenor sold growth, and nearly USD 200 million in equity free cash flow for Q1 2017; FY 2017 guidance confirmed a second tranche of its equity stake on 6 April 2017 VEON: a new personal internet expe
Slide 4: Financial highlights Q1 2017
Financial highlights Q1 2017 ► Reported total revenue increased 13% YoY; stable on an organic basis, adjusting for leap year effect TOTAL REVENUE (USD BILLION) 2.3 EBITDA MARGIN, UNDERLYING2 39.1% ► Reported EBITDA increased 14% YoY to USD 861 -1.0% organic1 YoY (%) +0.6 p.p. organic1 YoY million, a
Slide 5: VEON: a new personal internet experience
VEON: a new personal internet experience… E n g a g e me n t Monetization MESSAGING MY ACCOUNT CONTENT AND OFFERS MARKETPLACE F re e Y our News , m us ic, E veryt hi ng t he Me s s a g i n g - aut hent i c at ed vi deo and i nt ernet has t o wi t h c h a t a n d and s ec ure of f ers – of f er - f r
Slide 6: Dual listing in Amsterdam
Dual listing in Amsterdam ► On 4 April 2017, VEON established a dual listing on Euronext Amsterdam broadening its investor base ► Potential for inclusion in new stock indices and European stock coverage also expected to increase ► Ticker is “VEON” for both Amsterdam and NASDAQ ► Amsterdam listing of
Slide 7: VEON free float evolution
VEON free float evolution Before Telenor equity offering After first Telenor offer After second Telenor offer (27 September 2016) (12 April 2017) 8.3% 8.3% 8.3% 10.8% 20.1% 24.1% 47.9% 47.9% 47.9% 33.0% 23.7% 19.7% Free float Telenor LetterOne The Stichting1 1 The Stichting is the direct beneficial
Slide 8: 2016 dividend paid based on new policy
2016 dividend paid based on new policy ► For the financial year ended 31 December 2016, the Company paid a dividend in the aggregate amount of US 23 cents per share comprised of US 3.5 cents per share paid as an interim dividend in December 2016 and US 19.5 cents per share as a final dividend paid o
Slide 9: Currency trend continues to improve
Currency trend continues to improve VEON Coin against USD, Index(1Q14=100) 110 100 100 98 94 90 82 80 76 73 70 70 66 66 67 69 64 67 60 50 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 VEON currency weightings calculated from the sum of the individual countries’ relative contributi
Slide 10: Q1 2017 revenue evolution
Q1 2017 revenue evolution FOREX improvements and Warid acquisition driving reported revenue growth USD MILLION +13.1% +8.4% 198 88 (5) (131) 96 17 1 2,281 2,105 2,084 2,017 Reported Warid Pro-forma Equipments & Voice Interconnect Data and MFS Other 1 Organic total FOREX Total total 1Q16 total Access
Slide 11: Q1 2017 EBITDA evolution
Q1 2017 EBITDA evolution FOREX improvements and Warid acquisition driving reported EBITDA growth USD MILLION +13.6% +8.9% 95 (74) 20 40 (17) 69 (30) 758 778 818 891 861 Reported Warid Pro-forma Exceptional Underlying Service Performance Re-investment in FOREX Underlying EBITDA Exceptional EBITDA EBI
Slide 12: Russia: continued mobile revenue growth
Russia: continued mobile revenue growth TOTAL REVENUE MOBILE CUSTOMERS (RUB BILLION) (MILLION) -2.1% YoY -1.2% YoY ► Total service revenue decreased due to 65.9 70.1 64.5 declining fixed-line service revenue 11.3 10.8 9.7 ► Mobile service revenue increased 2% YoY, 57.7 57.0 51.8 55.9 52.3 adjusted f
Slide 13: Pakistan: continued growth while integration synergies drive margin expansion
Pakistan: continued growth while integration synergies drive margin expansion TOTAL REVENUE MOBILE CUSTOMERS (PKR BILLION) (MILLION) +5.4% YoY +8.7% YoY ► Merger integration well on track: • Annual run rate of gross synergies >PKR 11 billion 36.7 38.7 38.7 (>USD 100 million) 2.0 2.0 2.5 52.5 48.3 36
Slide 14: Algeria: prepared for turnaround in a challenging environment
Algeria: prepared for turnaround in a challenging environment TOTAL REVENUE MOBILE CUSTOMERS (DZD BILLION) (MILLION) -15.2% YoY -3.6% YoY ► New leadership team on board to drive the turnaround in a highly competitive market 30.0 27.2 25.5 0.3 0.3 0.3 16.7 16.1 ► Challenging environment continues: 29
Slide 15: Bangladesh: sustained data growth, market remains competitive
Bangladesh: sustained data growth, market remains competitive TOTAL REVENUE MOBILE CUSTOMERS (BDT BILLION) (MILLION) -1.2% YoY -3.4% YoY ► Service revenue decline of 2.5% YoY: 12.2 12.0 12.0 • Aggressive competition on customer acquisition after 0.2 0.4 in-market consolidation 0.3 31.6 30.5 12.0 11.
Slide 16: Ukraine: continued strong results
Ukraine: continued strong results TOTAL REVENUE MOBILE CUSTOMERS (UAH BILLION) (MILLION) +11.6% YoY +2.7% YoY ► Clear market leader and #1 NPS position 3.5 3.9 0.3 3.9 0.3 ► Mobile service revenue growth of 11.3% YoY 0.3 26.0 3.6 3.6 25.3 ► 70% YoY growth in mobile data revenue 3.2 ► Underlying EBIT
Slide 17: Uzbekistan: solid revenue performance
Uzbekistan: solid revenue performance TOTAL REVENUE MOBILE CUSTOMERS (UZS BILLION) (MILLION) +9.5% YoY +0.5% YoY ► Revenue grew by 9.5% YoY driven by USD- 518 denominated tariffs 513 4 3 9.5 9.5 ► Customer base grew 0.5% YoY, for the first 469 4 514 510 time since Q4 2014, as a result of successful
Slide 18: Italy: solid results and synergies on track
Italy: solid results and synergies on track TOTAL REVENUE MOBILE CUSTOMERS (EUR MILLION) (MILLION) +2.1% YoY -0.8% YoY ► #1 mobile operator in the country with mobile 1,754 customer market share above 37% 1,519 1,552 366 200 278 235 ► Service revenue +1% YoY, adjusted for the 263 269 31.1 30.9 leap
Slide 19: Q1 2017 income statement
Q1 2017 income statement 1Q16 USD MILLION 1Q17 pro 1Q16 Reported Organic2 reported forma reported YoY YoY Warid1 Revenue 2,281 2,105 2,017 13.1% (1.0%) ► Reported year-on-year increase driven by ruble appreciation and the Warid acquisition from 1 July 2016 Service revenue 2,202 2,030 1,948 13.1% (0.
Slide 20: Q1 2017 net debt evolution
Q1 2017 net debt evolution USD MILLION 343 349 (891) 193 126 487 (108) 7,661 7,162 6,969 Net debt EBITDA Change in working Net interest Taxes Cash capex excl. Net debt before Exceptionals in FOREX and other Net debt 31 December underlying capital licenses exceptionals and 1Q17 1 31 March 2016 FOREX
Slide 21: Q1 2017 update on corporate finance activities
Q1 2017 update on corporate finance activities Securing our strong liquidity profile Multi-currency (EUR/USD) syndicated Revolving Credit Facility and Term Loan of up to USD 2.25 billion Extending maturities Repaid 96% of PJSC’s 2022 RUB bonds, after put was exercised Centralizing debt Refinancing o
Slide 22: Robust underlying equity free cash flow evolution
Robust underlying equity free cash flow 1 evolution USD MILLION UNLESS OTHERWISE STATED (46) 199 194 41 Q1 2016 Increase in net Increase in net Q1 2017 cash from cash used operating in investing activities2 activities2 1 Underlying equity free cash flow, defined as net cash flow from operating activ
Slide 23: 2017 guidance confirmed
2017 guidance confirmed USD MILLION UNLESS OTHERWISE STATED Q1 2017 actuals FY 2017 targets1 (1%) Total revenue Low single digit growth (flat excl. leap year effect) Underlying EBITDA margin +0.6p.p. Low single digit accretion Underlying equity free cash flow2 194 700-800 ► Target includes average a
Slide 24: VEON
VEON
Slide 25: Appendix
APPENDIX
Slide 26: Debt maturity schedule
Debt maturity schedule Group debt maturity schedule by business unit AS AT 31 MARCH 2017 2.9 1.8 1.8 1.3 1.3 0.8 0.7 2017 2018 2019 2020 2021 2022 >2022 Russia GTH HQ Group debt maturity schedule by currency 1 2017 2018 2019 2020 2021 2022 >2022 PERCENT USD 1,4 0,7 1,1 0,7 0,7 1,3 1,7 73% RUB 0,9 0,
Slide 27: Liquidity Analysis
Liquidity Analysis Unused RCF headroom as at 31 March 2017: Group Cash Breakdown By Currency (31 March 2017) VimpelCom - syndicate USD 2.25 billion PJSC VimpelCom - Sberbank RUB 11 billion (USD 0.15 billion ) 35% Unused VF/CF headroom as at 31 March 2017: 65% VimpelCom - CDB RMB 0.36 billion (USD 0.
Slide 28: Debt by entity
Debt by entity As at 31 March 2017 USD millions Type of debt Vendor Entity Bonds Loans RCF Other Total Financing VimpelCom Holdings B.V. 3,047 500 - 49 - 3,596 VimpelCom Amsterdam B.V. - 1,000 - 585 - 1,085 PJSC VimpelCom 1,604 1,021 - 64 67 2,855 GTH Finance BV 1,200 - - - - 1,200 Pakistan Mobile C
Slide 29: Underlying equity free cash flow reconciliation table
Underlying equity free cash flow reconciliation table As at 31 March 2017 USD millions Entity 1Q17 1Q16 Net cash from operating activities 584 (362) Exceptional items: PT costs 23 44 Uzbekistan legal costs 795 IRAQNA provision 69 Underlying Net Cash Flow from operating activities 676 477 Net cash us
Slide 30: Forex
Forex Forex assumptions Average rates Closing rates Entity FY 2017 1Q17 1Q16 YoY 1Q17 1Q16 YoY Russian Ruble 67.00 58.84 74.63 (21.2%) 56.38 67.61 (16.6%) Algerian Dinar 118.00 109.93 107.82 2.0% 110.07 108.39 1.5% Pakistan Rupee 107.00 104.79 104.74 0.0% 104.83 104.71 0.1% Bangladeshi Taka 79.00 79