Slide 1: VEON 2Q22 Results
VEON 2Q22 RESULTS STRONG OPERATIONAL RESULTS IMPROVED PROFITABILITY 04 August 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 Reader: Impact of Conflict
NOTICE TO READER: IMPACT OF CONFLICT VEON's results and other financial information presented in these financial statements are, unless otherwise stated, prepared in accordance with International Financial Reporting Standards ("IFRS") based on internal management reporting, are the responsibility of
Slide 4: 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 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: 2Q22 Highlights
2Q22 HIGHLIGHTS TOTAL SERVICE 4G REVENUE REVENUE USERS $2,008mn $1,889mn 101.9mn +5.6% YoY +7.1% YoY +17.9% YoY +6.0% YoY +7.5% YoY local currency local currency Subscriber base +2.7% YoY Strong service revenue 4G penetration ARPU +5.7% YoY growth reached 50% GROUP EBITDA CAPEX CASH POSITION $913mn
Slide 7: 4G Growth Driving Data & Digital Revenues
4G GROWTH DRIVING DATA & DIGITAL REVENUES Growth in customer base Steady growth in 4G Healthy growth in data uptake and digital revenues1 203.7mn subscribers 4G users and penetration Data and digital revenues, YoY trends (3 month active, million and %) (USD million and %) +2.7% YoY 50.0% 43.1% ARPU
Slide 8: Digital Operator Strategy Delivering Results
DIGITAL OPERATOR STRATEGY DELIVERING RESULTS Growing customer engagement and retention Multiplay customers (B2C)1 ARPU Multiple Single play and no play revenue Double play revenue Multiplay revenue 4.0x Share of multiplay customers 3.1x 1.0x 1440 Voice only 2play 4G Multiplay READ PAY 19% 15% Churn
Slide 9: Group Service Revenue Growth +7.5% YoY in Local Currency
GROUP SERVICE REVENUE GROWTH +7.5% YOY IN LOCAL CURRENCY UKRAINE PAKISTAN KAZAKHSTAN RUSSIA +3.9% Service revenue +10.0% Service revenue +19.6% Service revenue +2.4% Service revenue -4.8% EBITDA +19.8% EBITDA +26.9% EBITDA +11.6% EBITDA BANGLADESH UZBEKISTAN KYRGYZSTAN +11.2% Service revenue +25.4%
Slide 10: Ukraine
UKRAINE Supporting our customers with service continuity and roam-like-home 2Q22 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 47% +18.0% +3.
Slide 11: Russia
RUSSIA Focus on customer experience drives double-digit EBITDA growth 2Q22 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 58% +2.4% 51% REVEN
Slide 12: Pakistan
PAKISTAN 4G penetration exceeds 50% supporting double digit growth 2Q22 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 51% +10.0% REVENUE REVE
Slide 13: Kazakhstan
KAZAKHSTAN Another successful quarter with revenue and EBITDA growth above 20% 2Q22 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 +19.6% 69% TOTAL SERVICE
Slide 14: Bangladesh
BANGLADESH Gaining market share with first quarter of double-digit topline growth 2Q22 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 37% REVE
Slide 15: Uzbekistan
UZBEKISTAN 2nd consecutive quarter of 20%+ topline growth 2Q22 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 TOTAL SERVICE +25.4% 62% REVENUE REVENUE +3.2%
Slide 16: Crystallising Infrastructure Value
CRYSTALLISING INFRASTRUCTURE VALUE Moving ahead in other VEON markets PAKISTAN BANGLADESH KAZAKHSTAN UZBEKISTAN UKRAINE 10.5k towers + 5.5k towers + 4.4k sites 3.7k sites 12.5k sites up to 3.7k BTS up to 3.9k BTS 1.5k towers Separation 8.8k sites Ongoing value Ongoing value planned for expected to r
Slide 17: Digital Products and Partnerships
DIGITAL PRODUCTS AND PARTNERSHIPS Driving our Digital Operator strategy JAZZCASH SIMPLY BEEPUL FINTECH 16.2mn PKR 3,674bn 115k KZT 29bn 260k UZS 925bn Monthly LTM Gross Monthly Gross Transaction Monthly Gross Transaction active users Transaction Value active users Value active users Value +23.2% YoY
Slide 18: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 18 18
Slide 19: 1H22 Highlights
1H22 HIGHLIGHTS TOTAL SERVICE EBITDA REVENUE REVENUE $3,831mn $3,565mn $1,686mn +2.7% YoY +3.1% YoY +4.4% YoY +7.9% YoY +8.2% YoY +9.9% YoY local currency local currency local currency Solid local currency Good momentum in Strong growth in local revenue performance local currency service currency EB
Slide 20: 2Q22 Highlights
2Q22 HIGHLIGHTS TOTAL SERVICE EBITDA REVENUE REVENUE $2,008mn $1,889mn $913mn +5.6% YoY +7.1% YoY +13.0% YoY +6.0% YoY +7.5% YoY +14.1% YoY local currency local currency local currency Solid local currency Good momentum in Strong growth in local revenue performance local currency service currency EB
Slide 21: 2Q22 Revenues
2Q22 REVENUES Positive service revenue trend continues across all markets REVENUE IN 2Q22 2Q22 results YoY trends (USD million) 160 148 56 14 252 325 TOTAL 158 895 2,008 REVENUE $2,008bn +5.6% Russia Russia Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Other, HQ and Group (Telecom) (Non telecom)
Slide 22: 2Q22 EBITDA and EBITDA Margin
2Q22 EBITDA AND EBITDA MARGIN Local currency EBITDA up strongly 45 (34) EBITDA IN 2Q22 56 2Q22 results YoY trends (USD million) 152 88 156 449 EBITDA 913 $913mn +13.0% Russia Ukraine Pakistan Kazakhstan Bangladesh Uzbekistan Other, HQ and Group eliminations 1 +14.1% local currency Local currency +11
Slide 23: 2Q22 Financial Update
2Q22 FINANCIAL UPDATE Continued focus on improving group liquidity 2Q22 (QoQ trends) CASH • Total cash USD 2.3 billion • HQ cash USD 1,863 million, with additional USD 476 million equivalent at operating companies LEVERAGE LEVERAGE • None of our operations have funding requirements from the HQ INCL.
Slide 24: Debt and Liquidity as of June 2022
DEBT AND LIQUIDITY AS OF 30 JUNE 2022 Marked impact from currency volatility DEBT AND CASH CURRENCY MIX NET DEBT AND LEASES CURRENCY MIX GROSS DEBT CASH NET DEBT CAPITALISED LEASES (EXCLUDING LEASES) (EXCLUDING LEASES) 1% 1% 1% 4% 3% 1%1% 3% 1% -3% 8% 4% 11% 6% 4% 7% 8% 32% USD USD USD 50% USD 8.7bn
Slide 25: Russia's Debt and Liquidity as of June 2022
RUSSIA’S DEBT AND LIQUIDITY AS OF 30 JUNE 2022 Balanced leverage excluding leases DEBT AND CASH NET DEBT AND LEASES GROSS DEBT CASH NET DEBT CAPITALISED LEASES1 (EXCLUDING LEASES) (EXCLUDING LEASES) USD USD USD USD 2.8bn 0.1bn 2.7bn 2.8bn Total gross debt incl. leases Leverage 2.27x Post-IFRS16 leve
Slide 26: Debt Maturity
DEBT MATURITY Sufficient cash to cover debt repayments for the next 12 months DEBT MATURITY SCHEDULE AS OF 30 JUNE 2022 (USD billion) Operating companies USD RUB PKR BDT UAH OTHER RCF (USD equivalent) Headquarters (other) Headquarters (RCF) 2.63 2.34 0.48 1.36 1.43 1.35 0.89 1.01 0.62 0.97 0.97 RCF
Slide 27: 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% 5.9% 5.9% 6.1% 6.3% • The higher cost of debt is driven by the increase in interest rates in Russi
Slide 28: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 28 28
Slide 29: Current Priorities
DRAFT 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 2.3bn, 1.9bn held at HQ le
Slide 30: Q&A
Q&A 30 30
Slide 31: Thank You
VEON THANK YOU! ir@veon.com Tel: +31 (0)20 79 77 200 31 31
Slide 32: Appendix
APPENDIX a TOFFEE
Slide 33: Debt by Entity
DEBT BY ENTITY1 30 JUNE 2022 (USD MILLION EQUIVALENT) Outstanding debt Type of debt Cash-pool Entity Bonds Loans overdrafts and Total other VEON Holdings B.V. 4,989 973 - 5,962 PJSC VimpelCom 10 1,759 - 1,769 Pakistan Mobile Communications Limited - 739 2 741 Banglalink Digital Communications Ltd. -
Slide 34: Lease Liabilities
LEASE LIABILITIES USD, million Local Currency, million 30 June 2022 31 March 2022 30 June 2022 31 March 2022 Russia 2,796 1,855 143,038 155,982 Pakistan 230 207 46,862 38,002 Ukraine 154 160 4,520 4,694 Bangladesh 297 263 27,675 22,660 Kazakhstan 56 59 26,131 26,929 Uzbekistan 34 30 364,874 345,871
Slide 35: Trading Update: Debt Maturity
TRADING UPDATE: DEBT MATURITY Debt maturity schedule 2022-2023 as of 30 June 2022 DEBT MATURITY SCHEDULE 2022 – 2023 (Millions) Oct/Nov 2022 2023 Maturity period Oct 2022 Feb 2023 Mar 2023 Apr 2023 Sep 2023 Dec 2023 2022 other other Outstanding debt, 10 973 26 529 30 700 30 26 45 USD equivalent Outs
Slide 36: Ukraine
UKRAINE REVENUE EBITDA1 4G USERS AND PENETRATION (UAH Billion) (UAH Billion) (Million and %) +3.9% YoY -4.8% YoY 49% 47% 46% 44% 38% 40% 4.7 4.8 4.9 4.8 4.9 4.4 7.1 7.5 7.9 7.4 6.8 7.3 11.6 12.1 12.7 11.6 9.7 10.3 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2
Slide 37: Russia
RUSSIA REVENUE EBITDA 4G USERS AND PENETRATION1 (RUB Billion) (RUB Billion) (Million and %) -0.8% YoY +11.6% YoY 55% 56% 58% 51% 53% 49% 68.4 75.3 77.5 72.2 69.1 28.2 27.3 27.6 29.3 69.6 26.8 26.3 23.1 24.2 25.4 25.5 25.3 25.5 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q2
Slide 38: Pakistan
PAKISTAN REVENUE1 EBITDA2 4G USERS AND PENETRATION (PKR Billion) (PKR Billion) (Million and %) +11.1% YoY +19.8% YoY 49% 51% 47% 48% 44% 41% 63.5 28.4 28.1 29.7 57.2 57.3 59.4 60.1 26.6 55.0 24.7 24.8 55.9 36.7 38.2 26.1 33.8 35.0 28.7 30.8 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
Slide 39: Kazakhstan
KAZAKHSTAN REVENUE EBITDA1 4G USERS AND PENETRATION (KZT Billion) (KZT Billion) (Million and %) +20.2% YoY +26.9% YoY 69% 64% 67% 39.1 59% 62% 36.8 35.8 56% 63.9 66.0 64.4 30.8 32.2 37.1 54.5 53.7 58.9 27.7 34.1 35.2 30.2 6.3 6.7 7.1 5.3 5.7 6.1 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22
Slide 40: Bangladesh
BANGLADESH REVENUE EBITDA 4G USERS AND PENETRATION (BDT Billion) (BDT Billion) (Million and %) +3.3% YoY 37% +11.1% YoY 35% 33% 34% 29% 5.2 5.2 26% 13.2 4.7 4.8 4.7 4.9 12.4 12.3 12.4 11.4 11.8 13.5 11.4 12.0 12.5 9.0 9.9 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q21 4Q2
Slide 41: Uzbekistan
UZBEKISTAN REVENUE EBITDA1 4G USERS AND PENETRATION (UZS Billion) (UZS Billion) (Million and %) +25.2% YoY +165.6% YoY 62% 62% 61% 54% 57% 50% 502.0 544.7 580.8 620.0 473.6 495.2 543.0 268.0 280.7 292.0 234.6 240.1 4.7 4.8 3.9 4.3 280.1 3.4 3.6 189.0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 1Q21 2Q21 3Q21 4Q21
Slide 42: Reconciliation Tables
RECONCILIATION TABLES Extract from VEON ltd.’s Earnings Release RECONCILIATION OF CONSOLIDATED EBITDA USD million 2Q22 2Q21 1H22 1H21 Unaudited EBITDA 913 808 1,686 1,615 Depreciation (420) (375) (780) (752) Amortization (86) (75) (173) (141) Impairment gain/(loss) (14) (3) (486) (5) Gain/(loss) on
Slide 43: Reconciliation Tables
RECONCILIATION TABLES Extract from VEON ltd.’s Earnings Release RECONCILIATION OF LOCAL CURRENCY AND REPORTED GROWTH RATES RECONCILIATION OF VEON CONSOLIDATED NET DEBT - 2Q22 COMPARED TO 2Q21 Total Revenue EBITDA USD million 30 June 2022 31 March 2022 31 December 2021 Forex and Forex and Local curre
Slide 44: 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