Slide 1: 1Q22 Trading Update
VEON 1Q22 TRADING UPDATE PROTECTING STAKEHOLDER VALUE DELIVERING CONTINUED LOCAL CURRENCY GROWTH ACROSS OUR OPERATIONS April 28, 2022 1 Amsterdam 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 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 su
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: 1Q22 Highlights
1Q22 HIGHLIGHTS TOTAL EBITDA CAPEX 4G CASH REVENUE USERS POSITION $1,823mn $775mn $367mn 100.8mn $1,904mn +9.8% +5.7% -6.2% YoY +24.3% YoY $1,304mn local currency local currency1 at HQ -0.4% reported -4.0% YoY reported Solid revenue EBITDA growth Group capex 4G penetration HQ cash position performan
Slide 7: March 2022 Highlights
MARCH 2022 HIGHLIGHTS A global telecom protecting stakeholder Group KPIs value and putting our people first for the month of March • Protecting our people USD 569.7 million Revenue +8.6% YoY local currency We continue to prioritize the safety and -11.9% YoY reported currency security of our employee
Slide 8: VEON's Wide Geographic Diversification
VEON’S WIDE GEOGRAPHIC DIVERSIFICATION Operating company contribution to key group metrics in 1Q22 Ukraine Pakistan Russia Kazakhstan Bangladesh Uzbekistan Georgia Kyrgyzstan Revenue 15% 19% 47% 8% 8% 3% 1% 1% EBITDA 21% 20% 40% 8% 7% 3% 0.5% 0.4% Subscribers, million 26.1 75.0 48.5 10.1 35.9 7.6 2.
Slide 9: 4G Drives Customer Engagement and Data & Digital Revenues
4G DRIVES CUSTOMER ENGAGEMENT AND DATA & DIGITAL REVENUES Steady growth in 4G Healthy growth in data Growth in customer base uptake and digital revenues1 4G Users and penetration Data and digital revenues and YoY trends 206.4mn subscribers (3 month active, million and %) (USD million and %) +3.9% Yo
Slide 10: Digital Operator Strategy Delivering Results
DIGITAL OPERATOR STRATEGY DELIVERING RESULTS Growing customer engagement and retention Multiplay customers ARPU Multiple Revenue share 1 Share of monthly active users 35% 3.8x 3.0x 30% 1.0x 1440 SP Voice 2play 4G Multiplay 21% READ PAY 18% 14% Churn Impact 8% 1.0x 0.6x 1Q20 1Q21 1Q22 0.4x SP Voice 2
Slide 11: Continued Local Currency Growth Across Our Countries
CONTINUED LOCAL CURRENCY GROWTH ACROSS OUR COUNTRIES UKRAINE PAKISTAN KAZAKHSTAN RUSSIA +15.1% Revenue +9.1% Revenue +20.0% Revenue +5.6% Revenue +4.6% EBITDA +13.7% EBITDA +9.2% EBITDA +2.8% EBITDA +9.3% Norm. EBITDA 1 +16.5% Norm. EBITDA 1 BANGLADESH UZBEKISTAN GEORGIA KYRGYZSTAN +8.6% Revenue +22
Slide 12: Ukraine
UKRAINE Supporting our communities and delivering resilient performance 1Q22 RESULTS YOY TRENDS 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 49% 21% REVENUE REVENUE +1
Slide 13: Russia
RUSSIA Providing an essential service to Beeline customers 1Q22 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 56% REVENUE REVENUE +4.1% 49%
Slide 14: Pakistan
PAKISTAN Jazz’s growing 4G penetration and digital services enhance value generation 1Q22 RESULTS YOY TRENDS 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 49% +9.1% REV
Slide 15: Kazakhstan
KAZAKHSTAN Fourth consecutive quarter of revenue growth above 20% 1Q22 RESULTS YOY TRENDS 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 +20.0% 66% REVENUE REVENUE +16.9
Slide 16: Bangladesh
BANGLADESH Increasing scale, scope and ambitions 1Q22 RESULTS YOY TRENDS 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 +8.6% 18% +3.7% -1.6% 35% REVENUE REVENUE 26% 12.
Slide 17: Uzbekistan
UZBEKISTAN Demand for data drives double digit growth 1Q22 RESULTS YOY TRENDS 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 +22.6% 62% 47% REVENUE REVENUE -2.5% 50% 43%
Slide 18: Our Other Countries Show Strong Growth in KPIs
OUR OTHER COUNTRIES SHOW STRONG GROWTH IN KPIs ALGERIA GEORGIA KYRGYZSTAN (asset held for sale) • 13.7% YoY growth in total revenue1 • 9.7% YoY growth in total revenue1 • +7.8% YoY growth in total revenue1 • 8.0% YoY growth in data revenue1 • 6.3% YoY growth in data revenue1 • +30.6% YoY growth in d
Slide 19: Digital Products and Partnerships
DIGITAL PRODUCTS AND PARTNERSHIPS Driving our Digital Operator strategy JAZZCASH BEEPUL SIMPLY FINTECH 15.7mn PKR 3,445bn 255.5k UZS 3,081bn 125.0k Monthly LTM Gross Monthly LTM Gross Monthly active active users Transaction Value active users Transaction Value users +12.2% YoY (c.6.5% of GDP) +67.3%
Slide 20: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 20 20
Slide 21: 1Q22 Revenues
1Q22 REVENUES Positive revenue trends across all markets REVENUE IN 1Q22 1Q22 results YoY trends (USD million) 53 20 -8 141 144 276 TOTAL 338 REVENUE 857 1,823 $1.823bn +9.8% local currency Russia Pakistan Ukraine Bangladesh Kazakhstan Uzbekistan Georgia and Eliminations Group -0.4% reported Kyrgyzs
Slide 22: 1Q22 EBITDA and EBITDA Margin
1Q22 EBITDA AND EBITDA MARGIN EBITDA IN 1Q22 1Q22 results YoY trends (USD million) 27 7 -36 66 55 158 171 EBITDA 327 775 $775mn +5.7% +7.3% norm.1 Russia Ukraine Pakistan Kazakhstan Bangladesh Uzbekistan Georgia and HQ and Group local currency Kyrgyzstan eliminations -4.0% reported Local currency 2.
Slide 23: 1Q22 Financial Update
1Q22 FINANCIAL UPDATE Further financial de-risking and supporting liquidity CASH 1Q22 (QoQ trends) • Total cash USD 1.9 billion • HQ cash USD 1.3 billion, with additional USD 600 million equivalent at operating companies • Approx. USD 700 million remains available under our revolving credit facility
Slide 24: Debt and Liquidity as of 31 March 2022
DEBT AND LIQUIDITY AS OF 31 MARCH 2022 Well balanced net debt position DEBT AND CASH CURRENCY MIX NET DEBT CURRENCY MIX GROSS DEBT CASH1 EXCLUDING LEASES1 INCLUDING LEASES1 (EXCLUDING LEASES) 2%1% 2%2% 1% 3% -2% 3% 10% 2% 7% 4% 4% 7% 4% 41% 24% USD 17% USD USD USD 31% 7.1bn 63% 1.9bn 5.2bn 61% 7.8bn
Slide 25: Aligning Our Capital Structure
ALIGNING OUR CAPITAL STRUCTURE Through debt novation Group Group, excl. Russia Russia as of 31.03.22 2% 2% 1% 0% 2%2% 1% 2% 2% 4% 4% 1% CURRENCY MIX1 4% 27% 18% USD USD CASH USD 1.8bn 0.1bn 17% 1.9bn 68% 70% 73% RUB 90 billion debt novation -1% 3% 5% 4% 6% NET DEBT CURRENCY MIX 7% (INCLUDING LEASES)
Slide 26: Debt Maturity
DEBT MATURITY Favorably staggered over the medium term DEBT MATURITY SCHEDULE AS OF 31 MARCH 2022 (USD billion) 2.47 1.38 1.32 0.91 0.68 0.10 0.06 0.13 2022 2023 2024 2025 2026 2027 2028 >2028 LEGEND: USD RUB PKR BDT UAH DZD EUR OTHER • USD 529 million 5.95% bonds February 2023 • USD 700 million 7.2
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 4.5%) 7.7% 6.9% • The higher cost of debt is driven by the increase in key rates in Russia and 6.3% Pakistan1 and highe
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
CURRENT PRIORITIES Our priority remains the safety and security 1 Protecting our people of our employees and our communities 2 Keeping our customers connected Global operator serving a primary need for our countries Ensuring at all time sufficient liquidity to meet our 3 Focus on cash generation and
Slide 30: Wa TOFFEE
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Slide 31: Thank You
VEON THANK YOU! ir@veon.com Tel: +31 (0)20 79 77 200 31 31
Slide 32: Appendix
APPENDIX UN TT iI TOFFEE wz ff) a% oe Beeline: a Zz
Slide 33: Debt by Entity
DEBT BY ENTITY1 31 MARCH 2022 (USD MILLION EQUIVALENT) Outstanding debt Type of debt Cash-pool Entity Bonds Loans overdrafts and Total other VEON Holdings B.V. 4,606 430 - 5,036 2 VEON Finance Ireland DAC - 1,070 - 1,070 Pakistan Mobile Communications Limited - 698 - 698 Private Joint Stock Company
Slide 34: Lease Liabilities
LEASE LIABILITIES USD million 31 March 2022 31 December 2022 Russia 1,855 2,133 Pakistan 207 89 Ukraine 160 114 Kazakhstan 263 222 Bangladesh 59 51 Uzbekistan 30 28 Other 12 12 Headquarters 12 13 Total 2,598 2,662 Note: After sale of Russian tower assets in 4Q21, Russia added lease liabilities of RU
Slide 35: Trading Update: Debt Maturity
TRADING UPDATE: DEBT MATURITY Debt maturity schedule 2022-2023 as of 31 March 2022 DEBT MATURITY SCHEDULE 2022 – 2023 (Millions) 2022 2023 Maturity period Jun 2022 Jun 2022 Sep 2022 Feb 2023 Mar 2023 Apr 2023 Sep 2023 Dec 2023 other other Outstanding debt, 39 29 11 25 529 33 700 33 66 23 USD equival
Slide 36: Ukraine
UKRAINE REVENUE EBITDA 4G USERS AND PENETRATION (UAH Billion) (UAH Billion) (Million and %) 49% +15.1% YoY +4.6% YoY 46% 44% 38% 40% 4.8 4.9 4.8 4.9 36% 7.1 7.3 7.5 7.9 4.5 4.7 6.7 6.8 11.6 12.1 12.7 9.3 9.7 10.3 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q20 1Q21 2Q21 3Q21 4Q21 1Q
Slide 37: Russia
RUSSIA REVENUE EBITDA 4G USERS AND PENETRATION1 (RUB Billion) (RUB Billion) (Million and %) 56% +5.6% YoY +2.8% YoY 53% 55% 49% 51% 48% 26.8 28.2 27.3 27.6 26.2 26.3 71.9 75.3 77.5 68.4 69.6 72.2 23.1 24.2 25.4 25.5 25.3 22.6 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q20 1Q21 2Q21
Slide 38: Pakistan
PAKISTAN REVENUE EBITDA 4G USERS AND PENETRATION (PKR Billion) (PKR Billion) (Million and %) +9.1% YoY +13.7% YoY 49% 47% 48% 41% 44% 28.4 26.6 28.1 38% 24.7 24.8 60.1 23.2 55.0 57.2 57.3 59.4 52.3 33.8 35.0 36.7 28.7 30.8 25.0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q20 1Q21 2Q
Slide 39: Kazakhstan
KAZAKHSTAN REVENUE EBITDA1 4G USERS AND PENETRATION (KZT Billion) (KZT Billion) (Million and %) +20.0% YoY +9.2% YoY 67% 62% 64% 36.8 56% 59% 35.8 54% 64.4 32.5 30.2 63.9 66.0 27.7 30.8 35.2 54.5 53.7 58.9 34.1 27.7 6.1 6.3 6.7 5.2 5.3 5.7 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22
Slide 40: Bangladesh
BANGLADESH REVENUE EBITDA 4G USERS AND PENETRATION (BDT Billion) (BDT Billion) (Million and %) +8.6% YoY +1.1% YoY 34% 33% 34% 26% 29% 12.4 12.3 12.4 4.6 5.2 5.2 4.7 24% 4.7 4.8 11.4 11.4 11.8 11.4 12.0 12.0 9.0 9.9 8.0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q20 1Q21 2Q21 3Q21
Slide 41: Uzbekistan
UZBEKISTAN REVENUE EBITDA 4G USERS AND PENETRATION (UZS Billion) (UZS Billion) (Million and %) +22.6% YoY +24.5% YoY 62% 61% 57% 50% 54% 280.7 292.0 46% 580.8 234.6 240.1 543.0 544.7 492.0 473.6 495.2 177.0 189.0 4.3 4.7 3.4 3.6 3.9 3.1 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 4Q2
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