Slide 1: FY2021 Results Beat Revenue & EBITDA Guidance
VEON FY2021 RESULTS BEAT REVENUE & EBITDA GUIDANCE NET PROFIT RISES TO USD 801 MILLION February 28, 2022
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: 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 4: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 4 4
Slide 5: Quarterly Improvement Continues, 2021 Results Beat Guidance
QUARTERLY IMPROVEMENT CONTINUES, 2021 RESULTS BEAT GUIDANCE High single-digit local Minimum 8% local Capex intensity currency revenue growth* currency EBITDA growth* 22-24%* Local currency YoY growth, % Local currency YoY growth, % Capex intensity, % 10.1% 24.6% 9.6% 8.9% 23.4% 4.2% 21.2% -1.4% -11.
Slide 6: 4G Expansion Drives Customer Engagement & Data Revenues
4G EXPANSION DRIVES CUSTOMER ENGAGEMENT & DATA REVENUES Growth in customer base Expanding customer Healthy growth in data engagement and digital revenues1 203.6mn subscribers +4.4% YoY Doubleplay/Multiplay 4G customers and Data and digital revenues and YoY trends share of revenues (USD million and %
Slide 7: 4Q21 Local Currency Portfolio Performance
4Q21 LOCAL CURRENCY PORTFOLIO PERFORMANCE Robust growth across our countries RUSSIA PAKISTAN KAZAKHSTAN UKRAINE +7.7% Revenue +13.7% Revenue +21.1% Revenue +12.5% Revenue +4.3% EBITDA +14.8% EBITDA +10.1% EBITDA +8.7% EBITDA +27.2% Norm. EBITDA 1 BANGLADESH UZBEKISTAN GEORGIA KYRGYZSTAN +8.3% Revenu
Slide 8: Russia
RUSSIA Positive momentum in service revenue and EBITDA continues 4Q21 RESULTS YOY TRENDS SERVICE REVENUE AND 4G USERS AND DOUBLEPLAY AND YOY TRENDS PENETRATION1 MULTIPLAY 4G CUSTOMERS (RUB Billion and %) (3 month active, million and %) Share of monthly active users 55% Revenue share TOTAL SERVICE 48
Slide 9: Ukraine
UKRAINE Offer evolution and network expansion support solid revenue growth 4Q21 RESULTS YOY TRENDS REVENUE AND 4G USERS AND DOUBLEPLAY AND YOY TRENDS PENETRATION MULTIPLAY 4G CUSTOMERS (UAH Billion and %) (3 month active, million and %) Share of monthly active users Revenue share +12.5% 46% 58% TOTA
Slide 10: Pakistan
PAKISTAN Strong momentum in 4G customer base growth continues 4Q21 RESULTS YOY TRENDS REVENUE AND 4G USERS AND DOUBLEPLAY AND YOY TRENDS PENETRATION MULTIPLAY 4G CUSTOMERS (PKR Billion and %) (3 month active, million and %) Share of monthly active users Revenue share 52% 48% TOTAL SERVICE +13.7% 41%
Slide 11: Kazakhstan
KAZAKHSTAN Third consecutive quarter of YoY revenue growth above 20% 4Q21 RESULTS YOY TRENDS REVENUE AND 4G USERS AND DOUBLEPLAY AND YOY TRENDS PENETRATION MULTIPLAY 4G CUSTOMERS (KZT Billion and %) (3 month active, million and %) Share of monthly active users Revenue share +21.1% 64% 75% TOTAL SERV
Slide 12: Bangladesh
BANGLADESH Growth in data users support solid financial performance 4Q21 RESULTS YOY TRENDS REVENUE AND 4G USERS AND DOUBLEPLAY AND YOY TRENDS PENETRATION MULTIPLAY 4G CUSTOMERS (BDT Billion and %) (3 month active, million and %) Share of monthly active users Revenue share 40% TOTAL SERVICE +8.3% 34
Slide 13: Our Other Countries Show Upbeat KPIs
OUR OTHER COUNTRIES SHOW UPBEAT KPIS UZBEKISTAN GEORGIA KYRGYZSTAN • 10.7% YoY growth in total revenue1 • 11.1% YoY growth in total revenue1 • 8.2% YoY growth in total revenue1 • 38.7% YoY growth in 4G users • 19.1% YoY growth in 4G users • 16.7% YoY growth in 4G users • 47.1% YoY growth in Double-
Slide 14: Digital Operator
DIGITAL OPERATOR Growing customer engagement and retention Doubleplay and ARPU Multiple Multiplay 4G customers Share of monthly active users Revenue share 4.3x 61.6% 3.3x 53.1% 1.0x 43.8% 1440 SP Voice 2play 4G Multiplay READ PAY Churn Impact 34.4% 27.1% 19.5% 1.0x 0.6x 0.3x 4Q19 4Q20 4Q21 SP Voice
Slide 15: Digital Products and Partnerships
DIGITAL PRODUCTS AND PARTNERSHIPS Executing on our Digital Operator Strategy JAZZCASH FINTECH APP RUSSIA SENSE FINTECH 15.2mn 130.8k 194.1k 144.4k 379k Monthly active Monthly active Monthly active Credit cards Monthly active users merchants users issued Kyivstar subscribers +24.9% YoY 2.3 times YoY
Slide 16: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 16 16
Slide 17: 2021 Results Set a Strong Base for the Medium Term
2021 RESULTS SET A STRONG BASE FOR THE MEDIUM TERM TOTAL EBITDA NET CAPEX EQUITY FREE REVENUE INCOME CASH FLOW $7,788mn $3,332mn $801mn $1,826mn $421mn +10.1% +8.9% YoY $(315)mn +1.8% YoY +38.0% YoY local currency local currency in FY 20 +6.8% reported +5.7% YoY reported Strong revenue Improving EBI
Slide 18: 4Q21 Highlights
4Q21 HIGHLIGHTS Improving revenue performance for the group REVENUE IN 4Q21 4Q21 results YoY trends (USD million) 51 22 -7 143 154 282 TOTAL 341 REVENUE 1,067 $2.052bn 2,052 +11.1% local currency +12.2% reported Russia Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Georgia and Eliminations Group
Slide 19: 4Q21 EBITDA and Net Income
4Q21 EBITDA AND NET INCOME Operating leverage gaining traction EBITDA IN 4Q21 4Q21 results YoY trends (USD million) 22 7 61 -57 83 153 EBITDA 181 $827mn 376 827 +9.5% +11.0% norm.1 local currency +10.6% reported Russia Ukraine Pakistan Kazakhstan Bangladesh Uzbekistan Georgia and HQ and Group Kyrgyz
Slide 20: Bringing Project 'Optimum' to Full Life
BRINGING PROJECT ‘OPTIMUM’ TO FULL LIFE Direct costs c.$2.2bn 28% Interconnect and other service costs 10% Sale commissions and expenses FY 2021 FY 2024 ambitions 11% Devices and accessories $4.5bn $250mn Total costs Annual run rate savings 17% 3 p.p. HQ costs reduction, YoY EBITDA margin improvemen
Slide 21: 4Q21 Capex
4Q21 CAPEX Focused execution CAPEX IN 4Q21 4Q21 results YoY trends (USD million) 14 13 1 35 66 CAPEX 68 79 $566mn 290 566 -12.1% Russia Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Georgia and HQ and Group Kyrgyzstan eliminations CAPEX INTENSITY 23.4% • Strong rollout across key markets last tw
Slide 22: 4Q21 Net Debt
4Q21 NET DEBT Derisking our balance sheet with strong liquidity 4Q21 (QoQ trends) LEVERAGE NET DEBT1 • Total cash USD 2.3 billion 2.44x $8.1bn • Undrawn committed credit lines of USD 1.5 billion 0.07x lower -0.4% • Average cost of debt 6.9%, up 100bp YoY driven by increased cost of RUB debt • Averag
Slide 23: FY21 Equity Free Cash Flow
FY21 EQUITY FREE CASH FLOW Positive equity free cash flow performance EQUITY FREE CASH FLOW GENERATION IN FY 2021 (USD million) 3,332 -1,826 -603 -331 -289 53 86 421 -87 334 -1 EBITDA Capex, excl. Net interest Lease Net tax paid Movements Working Other Equity Free Licences Equity licenses liabilitie
Slide 24: Outlook
OUTLOOK 2021 performance provides solid base for the medium term FY21 Guidance FY 2021 Actual High single-digit local +10.1% YoY Total Revenue currency growth in local currency No guidance for 2022 is provided, given current Minimum 8% local +8.9% YoY context EBITDA currency growth in local currency
Slide 25: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 25 25
Slide 26: Solid Execution in 2021
SOLID EXECUTION IN 2021 Promises made, results delivered 1 4G network rollout 47.8% 4G penetration, +9.4p.p. YoY 4Q21 local currency revenue +7.7% YoY and 2 Russia back to YoY growth Service revenues +6.6% YoY 3 Double-digit growth in Ukraine, Pakistan and Kazakhstan FY21 revenue +16.1% YoY in aggre
Slide 27: WA TOFFEE
ZL || WA TOFFEE Beeline: Beeline TV
Slide 28: Thank You!
VEON THANK YOU! ir@veon.com Tel: +31 (0)20 79 77 200 28 28
Slide 29: Appendix
ZL || WA TOFFEE Beeline: Beeline TV
Slide 30: Group Capital Structure as of December 2021
FINANCIAL RESULTS Group capital structure as of 31 December 2021 LEGEND: USD RUB PKR BDT UAH DZD EUR OTHER CASH GROSS DEBT CURRENCY MIX NET DEBT CURRENCY MIX CURRENCY MIX1,2 (EXCLUDING LEASES) (EXCLUDING LEASES AFTER HEDGING3,4) 3% 2% 4% 3% 4% 1% 4% -4% 7% 7% 3% 10% USD 30% USD USD 51% 2.3bn 7.6bn 5
Slide 31: Recent Debt Transactions Extend Maturity Profile
FINANCIAL RESULTS* Recent debt transactions extend maturity profile AVERAGE COST OF DEBT (%) 6.9% 6.3% • VEON Finance Ireland Designated Activity Company (DAC) 6.1% 6.1% signed two Term Facilities Agreement with Alfa-Bank and 5.9% 5.9% Sberbank of RUB 45 billion each (USD 1.2 billion) which included
Slide 32: Debt by Entity December 2021
DEBT BY ENTITY1 31 DECEMBER 2021 (USD MILLION EQUIVALENT) Outstanding debt Type of debt Cash-pool Entity Bonds Loans overdrafts2 and Total other VEON Holdings B.V. 5,102 404 - 5,506 VEON Finance Ireland DAC - 1,211 - 1,211 Pakistan Mobile Communications Limited - 497 2 499 Private Joint Stock Compan
Slide 33: Russia
RUSSIA Positive momentum in service revenue and EBITDA continues REVENUE EBITDA 4G USERS AND PENETRATION1 (RUB Billion) (RUB Billion) (Million and %) 55% +7.7% YoY +4.3% YoY 53% 48% 49% 51% 46% 27.7 26.2 26.8 26.3 28.2 27.3 71.9 68.4 69.6 75.3 77.5 69.6 23.1 24.2 25.4 25.5 21.7 22.6 3Q20 4Q20 1Q21 2
Slide 34: Ukraine
UKRAINE Offer evolution and network expansion support solid revenue growth REVENUE EBITDA 4G USERS AND PENETRATION (UAH Billion) (UAH Billion) (Million and %) +12.5% YoY +8.7% YoY 46% 44% 4.9 38% 40% 7.1 7.3 7.5 4.7 4.8 4.8 36% 6.5 6.7 6.8 4.4 4.5 34% 11.6 12.1 9.3 9.7 10.3 8.8 3Q20 4Q20 1Q21 2Q21 3
Slide 35: Pakistan
PAKISTAN Strong momentum in 4G customer base growth continues REVENUE EBITDA1 4G USERS AND PENETRATION (PKR Billion) (PKR Billion) (Million and %) +13.7% YoY +14.8% YoY 48% 47% 44% 38% 41% 31.4 35% 57.2 57.3 59.4 28.4 26.6 52.3 55.0 24.7 24.8 50.7 23.2 22.8 33.8 35.0 28.7 30.8 22.2 25.0 3Q20 4Q20 1Q
Slide 36: Kazakhstan
KAZAKHSTAN Third consecutive quarter of YoY revenue growth above 20% REVENUE EBITDA1 4G USERS AND PENETRATION (KZT Billion) (KZT Billion) (Million and %) +21.1% YoY +10.1% YoY 64% 59% 62% 36.8 35.8 54% 56% 66.0 32.5 30.8 50% 58.9 63.9 26.9 27.7 34.1 35.2 50.9 54.5 53.7 27.7 5.7 6.1 6.3 4.8 5.2 5.3 3
Slide 37: Bangladesh
BANGLADESH Growth in data users supports solid financial performance REVENUE EBITDA 4G USERS AND PENETRATION (BDT Billion) (BDT Billion) (Million and %) +8.3% YoY +12.8% YoY 34% 33% 5.1 5.2 5.2 29% 12.4 12.3 4.6 4.7 4.8 26% 11.8 24% 11.5 11.4 11.4 21% 11.4 12.0 9.0 9.9 7.0 8.0 3Q20 4Q20 1Q21 2Q21 3Q
Slide 38: Reconciliation Tables
RECONCILIATION TABLES extract from VEON Ltd.’s Earnings Release RECONCILIATION OF CONSOLIDATED EBITDA RECONCILIATION OF CAPEX RECONCILIATION OF EQUITY FREE CASH FLOW USD million 4Q21 4Q20 YoY 2021 2020 YoY EBITDA 827 748 10.6% 3,332 3,151 5.7% Movements in Working Capital and other 16 52 (69.4%) (63
Slide 39: Reconciliation Tables
RECONCILIATION TABLES extract from VEON Ltd.’s Earnings Release RECONCILIATION OF ORGANIC AND REPORTED GROWTH RATES RECONCILIATION OF VEON CONSOLIDATED NET DEBT - 4Q21 COMPARED TO 4Q20 Total Revenue EBITDA Forex and Forex and Local currency Reported Local currency Reported Other Other Russia 7.7% 5.
Slide 40: 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