Slide 1: 1Q23 Trading Update
VEON 1Q23 TRADING UPDATE STRONG START TO THE YEAR AS REVENUE GROWTH ACCELERATES Amsterdam, 4 May 2023 1 1
Slide 2: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 2 2
Slide 3: Notice to Readers: Impact of the Conflict
NOTICE TO READERS: IMPACT OF THE 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 responsibili
Slide 4: Disclaimer
DISCLAIMER VEON’s results presented in this trading update are, unless otherwise stated, based on IFRS and have not been externally reviewed and audited. The financial information included in this trading update is preliminary and is based on a number of assumptions that are subject to inherent unce
Slide 5: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5 5
Slide 6: 1Q23 Highlights
1Q23 HIGHLIGHTS TOTAL SERVICE EBITDA REVENUE REVENUE $884mn $852mn $385mn -8.7% YoY -7.9% YoY -13.5% YoY +15.3% YoY +15.9% YoY +11.2% YoY local currency local currency local currency Fifth quarter of Encouraging Service Positive EBITDA trends double-digit local currency revenue growth for across all
Slide 7: Accelerating Top Line with Double-Digit Growth
ACCELERATING TOP LINE WITH DOUBLE-DIGIT GROWTH REVENUE PERFORMANCE YoY in local currency Group Group, excl. Ukraine Ukraine 22.5% 19.0% 18.1% 20.1% 16.4% 16.4% 15.1% 13.8% 12.5% 15.4% 15.3% 13.0% 13.3% 13.2% 9.4% 13.4% 8.7% 8.2% 6.0% 5.2% 3.9% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Apr-23 7 7 Note: Group rev
Slide 8: 2023 Notes Amended with Maturities Extended to 4Q23
2023 NOTES AMENDED WITH MATURITIES EXTENDED TO 4Q23 In the best interest of all stakeholders VEON obtained remaining licences required to amend its 2023 Notes and VEON’s 2023 Notes have been amended 1 Recent events 2023 Put Option Event Notice distributed on 5 April and during the 2023 Put Option Pe
Slide 9: 4G Growth Driving Data & Digital Revenues
4G GROWTH DRIVING DATA & DIGITAL REVENUES Solid growth in customer Steady growth in 4G Steady growth in data and base uptake digital revenues 4G users and penetration Data and digital revenues and YoY in local 158mn mobile subscribers currency (3 month active, million) +0.7% YoY (USD million, excl.
Slide 10: 1Q23 Group Service Revenue +15.9% YoY in Local Currency
1Q23 GROUP SERVICE REVENUE +15.9% YOY IN LOCAL CURRENCY UKRAINE PAKISTAN BANGLADESH +6.0% Service revenue +17.1% Service revenue +18.0% Service revenue +1.0% EBITDA +12.0% EBITDA +11.7% EBITDA KAZAKHSTAN UZBEKISTAN KYRGYZSTAN +24.6% Service revenue +24.0% Service revenue +18.8% Service revenue +37.9
Slide 11: Ukraine
UKRAINE Keeping Ukraine connected 1Q23 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (B2C)1 (UAH Billion) (3 month active, million) Revenue share Share of monthly active users TOTAL SERVICE 55% +6.0% 24% REVENUE REVENUE +14.9% 49% +15.1% 38% 21% 8
Slide 12: Helsi
HELSI The largest digital healthcare platform in Ukraine Users registered in the system 25 million +0.6% QoQ Active healthcare institutions 1,500 +32.1% QoQ Active doctors and specialists 33,500 +7.4% QoQ Appointments in 1Q23 1.8 million +16.8% QoQ 12 12
Slide 13: Pakistan
PAKISTAN Double-digit growth in both revenue and EBITDA 1Q23 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (B2C) (PKR Billion) (3 month active, million) Revenue share Share of monthly active users TOTAL SERVICE +17.1% 58% 46% REVENUE REVENUE +10.3
Slide 14: JazzCash
JAZZCASH The most popular mobile financial services app in Pakistan MAU 14.6 million -6.7% YoY Active merchants 179,000 +23.6% YoY LTM Gross Transaction Value PKR 4.5 trillion +30.4% YoY LTM # of transactions 2.0 billion +9.4% YoY 14 14
Slide 15: Tamasha
TAMASHA Pakistan’s leading entertainment platform MAU 5.6 million 5.6x YoY Average DAU 914,000 5.2x YoY Daily watch time per user in 1Q23 30 min 2.4x YoY 15 15 15
Slide 16: Kazakhstan
KAZAKHSTAN Eighth consecutive quarter of revenue growth above 20% YoY 1Q23 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (B2C) (KZT Billion) (3 month active, million) Revenue share Share of monthly active users TOTAL SERVICE +24.6% 66% 69% +18.4%
Slide 17: Simply
SIMPLY Kazakhstan’s first mobile online-only neobank MAU 234,000 +87.3% YoY LTM Gross Transaction Value KZT 224 billion +34.1% QoQ LTM # of transactions 33 million +39.1% QoQ 17 17
Slide 18: BeeTV
BEETV Beeline Kazakhstan’s multiplatform entertainment service MAU on all platforms 720,000 +18.1% YoY MAU on mobile platform 509,000 +20.2% YoY Average DAU on mobile platform 35,000 -9.3% YoY Daily watch time per user in 1Q23 145 min +10.8% YoY 18 18 18
Slide 19: IZI
IZI First digital-only mobile operator in Kazakhstan MAU of IZI app 362,000 4.7 times YoY Monthly active mobile customers 173,000 +71.0% YoY Average daily active users 36,000 3.2 times YoY 19 19 19
Slide 20: Bangladesh
BANGLADESH Strong start to the year gaining further market share 1Q23 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (B2C) (BDT Billion) (3 month active, million) Revenue share Share of monthly active users TOTAL SERVICE +18.0% 45% REVENUE REVENUE
Slide 21: Toffee
TOFFEE The largest mobile entertainment platform in Bangladesh MAU 11.7 million +84.3% YoY Average DAU 2.0 million +96.4% YoY Daily watch time per user in 1Q23 11 min 21 21
Slide 22: Uzbekistan
UZBEKISTAN Fifth consecutive quarter of topline growth above 20% 1Q23 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (B2C) (UZS Billion) (3 month active, million) Revenue share +24.0% Share of monthly active users TOTAL SERVICE 62% 68% +22.8% 57% R
Slide 23: Our Self-Care Platforms
OUR SELF-CARE PLATFORMS Enable higher engagement and customer retention JazzWorld MyBL MyBeeline KZ 12.2mn 19.3% 6.2mn 18.8% 4.0mn 40.6% Monthly active Penetration Monthly active Penetration Monthly active Penetration users in A1M subs users in A1M subs users in A1M subs +15.9% YoY +3.0p.p. YoY +71.
Slide 24: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 24 24
Slide 25: 1Q23 Highlights
1Q23 HIGHLIGHTS TOTAL SERVICE EBITDA REVENUE REVENUE $884mn $852mn $385mn -8.7% YoY -7.9% YoY -13.5% YoY +15.3% YoY +15.9% YoY +11.2% YoY local currency local currency local currency Local currency revenue growth Strong growth in Data & Digital EBITDA margin at 43.6% with continues to accelerate rev
Slide 26: 1Q23 Revenues
1Q23 REVENUES Accelerating local currency revenue growth REVENUE IN 1Q23 1Q23 results YoY trends (USD million) 66 12 (2) (220) 170 174 292 TOTAL REVENUE 1,104 392 $884mn 884 -8.7% +15.3% local currency Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and Group in FX impact Group elimi
Slide 27: 1Q23 EBITDA and EBITDA Margin
1Q23 EBITDA AND EBITDA MARGIN Positive local currency EBITDA growth across all markets EBITDA IN 1Q23 1Q23 results YoY trends (USD million) 29 5 (46) 62 (106) 92 172 EBITDA 491 $385mn 177 385 -13.5% +11.2% local currency Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and Group in FX
Slide 28: 1Q23 Debt and Liquidity Update
1Q23 DEBT AND LIQUIDITY UPDATE 31 Mar 2023 vs. 31 Dec 2022 CASH LEVERAGE LEVERAGE • Total cash USD 3.0 billion, with USD 2.5 billion held at the HQ level INCL. LEASES EXCL. LEASES • Operations remain largely self funding 1.61x 1.29x DEBT 2.56x in 4Q22 2.36x in 4Q22 • VEON was informed that, as of 31
Slide 29: Group Debt and Liquidity as of March 2023
GROUP DEBT AND LIQUIDITY AS OF 31 MARCH 2023 DEBT AND CASH CURRENCY MIX NET DEBT AND LEASES CURRENCY MIX GROSS DEBT CASH NET DEBT CAPITALIZED LEASES (EXCLUDING LEASES) 2% 1% 1% 1% 1% 2% 14% 4% 11% 25% 6% 27% 20% 7% USD USD USD USD 5.7bn 3.0bn 1.9bn 67% 0.8bn 78% 84% 18% 40% Total gross debt excl. le
Slide 30: Russia's Debt and Liquidity as of March 2023
RUSSIA’S DEBT AND LIQUIDITY AS OF 31 MARCH 2023 DEBT AND CASH NET DEBT AND LEASES NET DEBT GROSS CAPITALIZED CASH (excl. lease DEBT LEASES liabilities) $4.4bn $0.2bn $2.5bn $1.7bn Total gross debt excl. leases USD 2.7bn Leverage 1.6x Post-IFRS 16 leverage 2.7x • VEON was informed that, as of 31 Marc
Slide 31: Debt Maturity
DEBT MATURITY Operating companies DEBT MATURITY SCHEDULE AS OF 31 MARCH 2023 Headquarters (RCF) (USD billion) Headquarters (other) USD RUB PKR BDT UAH OTHER RCF 3.02 0.49 1.06 1.90 0.81 1.26 0.76 1.44 0.56 0.25 0.20 0.12 0.06 0.05 Cash and cash 2023 2024 2025 2026 2027 2028 2029 >2029 equivalents 1
Slide 32: Debt Management Update
DEBT MANAGEMENT UPDATE AVERAGE COST OF DEBT (%) 7.7% 6.9% 7.0% 6.8% 7.0% 7.0% • The higher cost of debt vs. 4Q22 was impacted by the 6.7% 5.9% 6.1% 6.3% reclassification of bonds purchased by Russia to intercompany debt as well as the increased interest rates on floating PKR debt 5.0% 5.0% 5.0% 5.0%
Slide 33: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 33 33
Slide 34: 2023 Outlook
2023 OUTLOOK We reiterate our full-year guidance 1Q23 Actual FY 2023 Guidance +15.3% YoY Total Revenue in local currency 10%-14% local currency growth +11.2% YoY EBITDA in local currency LTM Capex intensity 20.3% 18%-20% • As we execute on our strategy across the Group, our 2023 local currency guida
Slide 35: 2023 Ambitions
2023 AMBITIONS We are progressing towards our full-year ambitions 1 Russia sale • Aim to conclude Russia sale transaction • Aim to finalize the Scheme of Arrangement (completed) 2 Focus on capital structure • Material deleverage of the Group • Execution on “4G for all” and “Digital Operator” 3 Drivi
Slide 36: Q&A
VEON 1Q23 TRADING UPDATE Q&A 36 36
Slide 37: Thank You!
VEON 1Q23 TRADING UPDATE THANK YOU! ir@veon.com Tel: +31 (0)20 79 77 200 37 37
Slide 38: Appendix
VEON 1Q23 TRADING UPDATE APPENDIX 38 38
Slide 39: Digital Operator Strategy Delivering Results
DIGITAL OPERATOR STRATEGY DELIVERING RESULTS Multiplay customers (B2C) ARPU Multiple Single play and no play revenue Double play revenue Multiplay revenue 3.4x 3.5x Share of multiplay customers 1.0x Voice only 2play 4G Multiplay READ PAY 22% 16% Churn Impact 12% 39% 1.0x 23% 30% 0.7x 0.5x 1Q21 1Q22
Slide 40: 1Q23 Revenues
1Q23 REVENUES 1Q23 results YoY trends REVENUE IN 1Q23 63 13 (2) (USD million) 138 175 TOTAL REVENUE 228 884 $884mn 269 -8.7% +15.3% local currency Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and Group eliminations Local currency SERVICE YoY growth REVENUE Total revenue +16.0% +6.
Slide 41: 1Q23 EBITDA and EBITDA Margin
1Q23 EBITDA AND EBITDA MARGIN 1Q23 results YoY trends EBITDA IN 1Q23 (USD million) 28 5 (46) 50 92 EBITDA 135 $385mn 122 385 -13.5% +11.2% local currency Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and Group eliminations EBITDA Local currency +12.0% +1.0% +37.9% +11.7% +9.7% +33.
Slide 42: Debt by Entity
DEBT BY ENTITY1 31 MARCH 2023 (USD MILLION EQUIVALENT) Outstanding debt Type of debt Cash-pool Entity Bonds Loans overdrafts and Total other VEON Holdings B.V. 3,089 1,055 - 4,144 Pakistan Mobile Communications Limited - 529 22 551 Banglalink Digital Communications Ltd. - 115 - 115 Private Joint Sto
Slide 43: Lease Liabilities (Principal)
LEASE LIABILITIES (PRINCIPAL) USD, million Local currency, million 31 March 2023 31 December 2022 31 March 2023 31 December 2022 Pakistan 197 227 55,735 51,419 Ukraine 161 148 5,872 5,398 Bangladesh 325 329 34,506 33,900 Kazakhstan 76 61 34,104 28,176 Uzbekistan 32 30 360,876 338,251 Other 5 5 428 4
Slide 44: Debt Maturity Schedule 2023-2024
DEBT MATURITY Debt maturity schedule 2023-2024 as of 31 March 2023 DEBT MATURITY SCHEDULE 2023-2024 (pro-forma due to amendment of 2023 Notes)1 (Millions) Maturity Sep Oct1 Dec1 Dec 2023 Mar Mar2 Jun Sep 2024 period 2023 2023 2023 2023 other 2024 2024 2024 2024 other Outstanding debt, USD 21 206 434
Slide 45: Ukraine
UKRAINE REVENUE EBITDA1 4G USERS AND PENETRATION (UAH Billion) (UAH Billion) (3 months active, million) +6.0% YoY +1.0% YoY 55% 53% 49% 50% 46% 47% 4.8 4.9 4.6 4.9 4.4 4.5 7.9 7.7 8.2 8.3 7.5 7.4 12.1 12.7 12.1 13.1 13.3 11.6 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 4Q21 1Q22 2Q22
Slide 46: Pakistan
PAKISTAN REVENUE1 EBITDA1 4G USERS AND PENETRATION (PKR Billion) (PKR Billion) (3 months active, million) 58% +16.0% YoY +12.0% YoY 54% 56% 48% 49% 51% 73.9 69.7 49.8 59.4 60.1 63.5 64.2 28.1 29.7 26.5 31.5 26.6 40.6 41.3 43.1 35.0 36.7 38.2 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 4Q21 1Q22 2Q22 3Q22 4Q22 1Q2
Slide 47: Kazakhstan
KAZAKHSTAN REVENUE1 EBITDA2 4G USERS AND PENETRATION (KZT Billion) (KZT Billion) (3 months active, million) +23.3% YoY +37.9% YoY 69% 67% 69% 69% 68% 64% 39.1 40.2 38.3 41.7 35.8 78.7 79.2 79.4 30.2 66.0 70.7 64.4 6.7 7.1 7.2 7.2 7.3 6.3 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 4Q
Slide 48: Bangladesh
BANGLADESH REVENUE EBITDA 4G USERS AND PENETRATION (BDT Billion) (BDT Billion) (3 months active, million) 45% +17.7% YoY +11.7% YoY 43% 41% 35% 37% 34% 5.2 4.9 5.1 5.3 14.4 14.6 4.7 4.7 13.2 13.8 12.3 12.4 16.1 17.4 13.5 15.0 12.0 12.5 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 4Q21
Slide 49: Uzbekistan
UZBEKISTAN REVENUE1 EBITDA2 4G USERS AND PENETRATION (UZS Billion) (UZS Billion) (3 months active, million) 68% +24.0% YoY +9.7% YoY 62% 66% 61% 62% 62% 502.0 664.7 709.7 719.9 544.7 580.8 620.0 292.0 302.8 274.7 320.3 5.7 240.1 5.5 4.3 4.7 4.8 4.8 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 4Q21 1Q22 2Q22 3Q22 4
Slide 50: Reconciliation Tables
RECONCILIATION TABLES Extract from VEON Ltd.’s 1Q23 trading update RECONCILIATION OF LOCAL CURRENCY AND REPORTED GROWTH RATES - 1Q23 COMPARED TO 1Q22 Total Revenue EBITDA Forex and Forex and Local currency Reported Local currency Reported Other Other Pakistan 16.0% (36.4%) (20.4%) 12.0% (35.2%) (23.
Slide 51: 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