Slide 1: 3Q24 Trading Update
VEON 3Q24 TRADING UPDATE • ANOTHER BILLION-DOLLAR QUARTER • DIGITAL DRIVES GROWTH 14 November 2024 1 3Q24 trading update |1
Slide 2: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS – INCLUDING DEBT MATURITY AND LIQUIDITY UPDATE Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 2 3Q24 trading update |2
Slide 3: Disclaimer
DISCLAIMER VEON's results and other financial information presented in this document are, unless otherwise stated, prepared in accordance with International Financial Reporting Standards ("IFRS") and have not been externally reviewed and/or audited. The financial information included in this documen
Slide 4: Notice to Readers: Financial Information Presented
NOTICE TO READERS: FINANCIAL INFORMATION PRESENTED VEON's results and other financial information presented in this document are, unless otherwise stated, prepared in accordance with International Financial Reporting Standards ("IFRS") based on internal management reporting, are the responsibility o
Slide 5: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS – INCLUDING DEBT MATURITY AND LIQUIDITY UPDATE Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 5 3Q24 trading update |5
Slide 6: VEON YoY USD and LCY Revenue Growth Performance
VEON YOY USD AND LCY REVENUE GROWTH PERFORMANCE Group total revenue, YoY Group EBITDA, YoY 23.0% 16.4% 13.9% 15.1% 16.0% 12.6% 15.0% 14.0% 13.0% 9.9% 11.6% 14.1% 9.8% 5.1% 10.6% 12.1% 9.8% 3.0% 3.5% 5.0% 0.2% -1.5% 6.6% -7.0% -5.3% -7.9% -1.5% -5.0% -2.4% -17.0% 2022 2023 1Q24 2Q24 3Q24 2022 2023 1Q
Slide 7: 3Q24 Highlights
3Q24 HIGHLIGHTS TOTAL TELECOM/ DIRECT REVENUE INFRA DIGITAL EBITDA REVENUE REVENUE $1,038mn $916mn $121mn $438mn +9.8% YoY +7.2% YoY 35.1% YoY -1.5% YoY +14.1% YoY +12.2% YoY 32.6% YoY +3.5% YoY local currency local currency local currency local currency 9M24 grew +9.5% YoY in USD 9M24 grew +6.7% Yo
Slide 8: 3Q24 Group Overview
3Q24 GROUP OVERVIEW Ukraine Pakistan Kazakhstan USD LCY USD LCY USD LCY Total revenue Total revenue Total revenue +4.8% +17.9% +28.5% +22.6% +9.3% +14.8% EBITDA EBITDA EBITDA -5.0% +6.9% +20.2% +14.7% -10.2% -5.9% Bangladesh Uzbekistan USD LCY USD LCY Total revenue Total revenue -15.7% -8.4% +8.3% +
Slide 9: 9 Months YTD Group Overview
9 MONTHS YTD GROUP OVERVIEW Ukraine Pakistan Kazakhstan USD LCY USD LCY USD LCY Total revenue Total revenue Total revenue -4.0% +4.7% +25.2% +25.0% +16.6% +18.2% EBITDA EBITDA EBITDA -10.9% -2.6% +20.4% +20.2% +11.2% +12.3% Bangladesh Uzbekistan USD LCY USD LCY Total revenue Total revenue -5.5% +0.2
Slide 10: Multiplay Driving Revenue Growth
MULTIPLAY DRIVING REVENUE GROWTH Mobile customer base Steady growth in 4G Revenues from 4G users uptake drive top line growth 154mn subscribers A3M 4G users and penetration Multiplay and Doubleplay 4G (B2C) revenue (3 months active, million) (USD million) 132mn subscribers A1M 65% Multiplay 2Play 4G
Slide 11: Our Journey Towards Direct Digital Revenues
OUR JOURNEY TOWARDS DIRECT DIGITAL REVENUES We are focused on growing our Direct digital revenues direct digital revenues USD, million 11% % of total revenues • Our core digital vertical includes: Full year fintech, healthcare, education, Sept. YTD entertainment, and enterprise services (AdTech, Clo
Slide 12: Ukraine 3Q24
UKRAINE 3Q24 Proven resilience and return to strong growth 3Q24 RESULTS AND YOY TRENDS B2C SEGMENT REVENUES IN 4G USERS AND DIRECT DIGITAL REVENUE AND SERVICE REVENUE PENETRATION % IN TOTAL REVENUE (billion) (3 month active, million) (billion) DIRECT 2.3% TOTAL Multiplay 2Play 4G Other DIGITAL 65.4%
Slide 13: Pakistan 3Q24
PAKISTAN 3Q24 Strong revenue and EBITDA YoY growth continues 3Q24 RESULTS AND YOY TRENDS B2C SEGMENT REVENUES IN 4G USERS AND DIRECT DIGITAL REVENUE AND SERVICE REVENUE PENETRATION % IN TOTAL REVENUE (billion) (3 month active, million) (billion) TOTAL DIRECT Multiplay 2Play 4G Other 25.5% 69.1% 24.5
Slide 14: Kazakhstan 3Q24
KAZAKHSTAN 3Q24 High double-digit revenue and EBITDA growth, gaining market share 3Q24 RESULTS AND YOY TRENDS B2C SEGMENT REVENUES IN 4G USERS AND DIRECT DIGITAL REVENUE AND SERVICE REVENUE PENETRATION % IN TOTAL REVENUE (billion) (3 month active, million) (billion) DIRECT Multiplay 2Play 4G Other 9
Slide 15: Bangladesh 3Q24
BANGLADESH 3Q24 Impacted by macro economic headwinds and civil unrest 3Q24 RESULTS AND YOY TRENDS B2C SEGMENT REVENUES IN 4G USERS AND DIRECT DIGITAL REVENUE AND SERVICE REVENUE PENETRATION % IN TOTAL REVENUE (billion) (3 month active, million) (million) DIRECT Multiplay 2Play 4G Other TOTAL DIGITAL
Slide 16: Uzbekistan 3Q24
UZBEKISTAN 3Q24 Double-digit revenue growth, reached c.74% 4G user penetration 3Q24 RESULTS AND YOY TRENDS B2C SEGMENT REVENUES IN 4G USERS AND DIRECT DIGITAL REVENUE AND SERVICE REVENUE PENETRATION % IN TOTAL REVENUE (billion) (3 month active, million) (billion) DIRECT 3.8% Multiplay 2Play 4G Other
Slide 17: DO1440 Flywheel Spinning Faster, Planting Future Growth
DO1440 FLYWHEEL SPINNING FASTER, PLANTING FUTURE GROWTH Our digital portfolio of assets as of 30 September 2024 Direct digital revenue 12% Total digital MAU across all LTM Gross Transaction Value LTM Total usage time, Total digital-only MAU minutes of total revenues in 3Q24 services and platforms 23
Slide 18: Our Mobile Financial Services
OUR MOBILE FINANCIAL SERVICES Provide a broad portfolio of branchless banking services for customers JazzCash Simply Beepul Total Pakistan Kazakhstan Uzbekistan 3Q24 ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 19.2 24.9% 2.3 7.1x 1.3 2.0x 22.8 39% LTM Total transactions (million) 2,556 28.7% 102 1
Slide 19: Our Entertainment Platforms
OUR ENTERTAINMENT PLATFORMS Offer new experiences and unique content to our customers Tamasha Toffee Kyivstar TV BeeTV Kinom Total Pakistan Bangladesh Ukraine Kazakhstan Uzbekistan 3Q24 ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 10.6 -27% 6.1 -49% 1.6 42% 0.9 14% 0.7 -27% 19.9 -31
Slide 20: Our Self-Service & Second Brand Platforms
OUR SELF-SERVICE & SECOND BRAND PLATFORMS Transforming into super-apps Simosa MyBL My Kyivstar Beeline My Beeline Total Self-service apps Pakistan Bangladesh Ukraine Uzbekistan Kazakhstan 3Q24 ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 15.4 13.9% 7.6 0.7% 5.1 39.3% 4.8 11.2% 4.7 4
Slide 21: Helsi
HELSI The largest digital healthcare platform in Ukraine Users registered in the system 28+ million +8% YoY Active healthcare institutions 1,600 +10% YoY Active doctors and specialists 39,000+ +12% YoY Appointments in 3Q24 2.2 million +20% YoY 21 3Q24 trading update |21
Slide 22: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS – INCLUDING DEBT MATURITY AND LIQUIDITY UPDATE Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 22 3Q24 trading update |22
Slide 23: 3Q24 Revenues
3Q24 REVENUES REVENUE, FX DIFFERENCES IN 3Q24 (USD million) 70 15 (2) (17) FX differences 3Q24 results YoY trends 140 224 TOTAL 250 REVENUE +14.1% 1,055 1,038 Local currency 359 $1,038mn +9.8% Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and VEON, Identified VEON, DIRECT DIGITAL e
Slide 24: 3Q24 EBITDA and EBITDA Margin
3Q24 EBITDA AND EBITDA MARGIN EBITDA, FX DIFFERENCES IN 3Q24 (USD million) FX differences 3Q24 results YoY trends 25 5 (29) 66 (36) 115 EBITDA +3.5% 144 Local currency 473 438 $438mn 149 -1.5% Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and VEON, Identified VEON, eliminations und
Slide 25: 3Q24 Debt and Liquidity Update
3Q24 DEBT AND LIQUIDITY UPDATE CASH • Group cash USD 1,019 million, of which USD 453 million at the HQ level. USD, million 30 Sep 2024 30 Jun 2024 QoQ • In addition to the USD 1,019 million, we also hold USD 211 million in USD denominated domestic Ukrainian long-term sovereign bonds (classified as i
Slide 26: Debt Management Update
DEBT MANAGEMENT UPDATE AVERAGE COST OF DEBT (%) 21.2% 12.1% • Average cost of debt, with respect to bank loans and bonds, reflect a blended rate of borrowings, mainly in USD, PKR and BDT. 9.7% • PKR debt, with average cost of 21.2%, accounted for c.28% of total 3.6% Group debt excl. leases in Q3 202
Slide 27: Debt Maturity as of 30 September 2024
DEBT MATURITY AS OF 30 SEPTEMBER 2024 DEBT MATURITY SCHEDULE AS OF 30 SEPTEMBER 2024 (excluding leases) (USD billion) USD RUB PKR BDT OTHER 1.18 0.83 0.54 0.23 0.12 2024 2025 2026 2027 >2028 As of 30 September 2024, the outstanding amount of VEON Holdings B.V. bonds includes an equivalent of USD 112
Slide 28: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS – INCLUDING DEBT MATURITY AND LIQUIDITY UPDATE Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 28 3Q24 trading update |28
Slide 29: 2024 Outlook
2024 OUTLOOK • Taking into account deceleration in inflation2 rates across VEON’s operating markets (down from 16.5% in 3Q23 to 8.2% in 3Q24), revolution in Bangladesh which disrupted operations, and the sale of TNS+ in Kazakhstan: FY 2024 FY 2024 9M 2024 FY 2024 USD Guidance1 Actual Revised Guidanc
Slide 30: Q&A
VEON 3Q24 TRADING UPDATE Q&A 30 3Q24 trading update |30
Slide 31: Thank You!
VEON 3Q24 TRADING UPDATE THANK YOU! ir@veon.com Tel: +31 (0)20 79 77 200 31 3Q24 trading update |31
Slide 32: Appendix
VEON 3Q24 TRADING UPDATE APPENDIX 32 3Q24 trading update |32
Slide 33: Digital Financial Services in Pakistan
DIGITAL FINANCIAL SERVICES IN PAKISTAN JazzCash and Mobilink Bank DFS 3Q24 RESULTS AND YOY TRENDS The most popular domestic mobile Pakistan’s largest domestic digital financial services app in Pakistan TOTAL bank with over 20% of loans REVENUE issued digitally MAU MAU Dost app 19.2bn 19.2 million PK
Slide 34: Simply
SIMPLY Kazakhstan’s first mobile online-only neobank MAU 2.3 million 7.1x YoY LTM Gross Transaction Value KZT 643 billion 2.0x YoY LTM # of transactions 102 million 81% YoY 34 3Q24 trading update |34
Slide 35: Beepul
BEEPUL Beeline Uzbekistan’s integrated mobile financial services MAU 1.3 million 2.0x YoY LTM Gross Transaction Value UZS 5.9 trillion +21.3% YoY LTM # of Transactions 52.2 million 4.8 4.8 35 3Q24 trading update |35
Slide 36: Toffee
TOFFEE The largest Bangladeshi mobile entertainment platform MAU 6.1 million -49% YoY Guest users 60.4% -9.6p.p. YoY Total # of sessions 58.7 million -58% YoY Ad and subscription revenues in 3Q24 BDT 30 million ARPU BDT 270 2.5x higher than single play voice customers 36 3Q24 trading update |36
Slide 37: Tamasha
TAMASHA Pakistan’s leading domestic entertainment platform MAU 10.6 million -27% YoY Guest users 45.3% -18.1p.p. YoY Total # of sessions 194.7 million -15% YoY ICC World Cup 2024: Ad Revenues PKR 73 million new revenue streams keep momentum ARPU Pakistan Digital Award 2024: PKR 611 Best Online Strea
Slide 38: IZI
IZI Youth-focused mobile entertainment operator in Kazakhstan Entertainment platform Mobile operator The app offers a variety of With the highest NPS score in unique and new content Kazakhstan MAU Monthly active mobile customers 608k 300,000+ +42,8% YoY +37% YoY Guest users “I Join” NPS 48% 58% +6.1
Slide 39: ROX
ROX Digital-first lifestyle operator in Pakistan Lifestyle platform Mobile operator The app brings entertainment, Offering fast data and crystal- gaming, streaming and more clear voice services MAU Monthly active mobile customers 465,000+ 103,000+ Guest users ARPU 186,000+ PKR 1,410 (ARPU Jazz: PKR
Slide 40: Digital Operator Strategy Delivering Results
DIGITAL OPERATOR STRATEGY DELIVERING RESULTS Multiplay (B2C) segment ARPU Multiple Churn Impact Single play and 24% 28% no play revenue 19% Double play revenue 3.7x 4.1x 1.0x Multiplay revenue 0.7x 0.5x 42% 51% 35% Share of 1.0x multiplay users 3Q22 3Q23 3Q24 Voice only 2play 4G Multiplay Voice only
Slide 41: Group Debt and Liquidity Currency Mix as of 30 September 2024
GROUP DEBT AND LIQUIDITY CURRENCY MIX AS OF 30 SEPTEMBER 2024 Gross debt Cash, cash Net debt* AS OF 30 September 2024 Capitalised Gross debt excluding equivalents excluding USD equivalent, million leases leases and deposits leases USD 1,698 4 1,694 572 1,122 RUB 97 - 97 - 97 PKR 1,139 304 835 176 80
Slide 42: Outstanding Debt by Entity
OUTSTANDING DEBT BY ENTITY AS OF 30 SEPTEMBER 2024 (USD equivalent, million) Type of debt Total Overdrafts and Entity Bonds Loans outstanding vendor financing debt 1 VEON Holdings B.V. 1,676 - - 1,676 Pakistan Mobile Communications Ltd. 54 769 2 825 Banglalink Digital Communications Ltd. - 194 5 199
Slide 43: Debt Maturity
DEBT MATURITY Debt maturity schedule 2024-2025 as of 30 September 2024 DEBT MATURITY SCHEDULE 2024-2025 (millions) Maturity period Oct 2024 2024 other Feb 2025 Apr 2025 Jun 2025 Sep 2025 2025 other Outstanding debt, 54 66 23 496 97 22 189 USD equivalent Outstanding debt, PKR 15,000 MIX PKR 6,340 USD
Slide 44: Lease Liabilities (Principal)
LEASE LIABILITIES (PRINCIPAL) USD, million Local currency, million 30 Sep 2024 30 Jun 2024 30 Sep 2023 30 Sep 2024 30 Jun 2024 30 Sep 2023 Pakistan 304 299 228 84,525 83,180 65,743 Ukraine 169 170 179 6,975 6,907 6,541 Bangladesh 373 385 329 44,572 45,181 36,182 Kazakhstan 127 116 81 60,848 54,639 3
Slide 45: Reconciliation Tables
RECONCILIATION TABLES Extract from 3Q24 trading update RECONCILIATION OF LOCAL CURRENCY NORMALISED, LOCAL CURRENCY AND REPORTED YOY GROWTH RATES - 3Q24 Total Revenue EBITDA Impact of Impact of FX Impact of Impact of FX LCY, underlying LCY Reported LCY, underlying LCY Reported identified items and ot
Slide 46: Reconciliation Tables
RECONCILIATION TABLES Extract from 3Q24 trading update RECONCILIATION OF AMOUNTS: REPORTED, IN CONSTANT CURRENCY, AND IDENTIFIED ITEMS IN CONSTANT CURRENCY - 3Q24 Identified items, Underlying, Identified items, Underlying, USD, million Reported Constant FX USD, million Reported Constant FX constant
Slide 47: Reconciliation Tables
RECONCILIATION TABLES Extract from 3Q24 trading update RECONCILIATION OF NET DEBT USD million 30 Sep 2024 30 Jun 2024 31 Mar 2024 Net debt, excluding leases and banking operations 2,100 2,226 2,040 in Pakistan Lease liabilities - principal 1,014 1,011 1,024 Net debt, excluding banking operations in
Slide 48: 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. Average revenue per user (“ARPU”) measures the mont