Slide 1: 4Q22 and FY22 Results
VEON 4Q22 AND FY22 RESULTS SALE OF RUSSIA WILL LEAD TO A SIGNIFICANT REDUCTION IN DEBT Amsterdam, 16 March 2023 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 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 presentation 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. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 5 5
Slide 6: 4Q22 Highlights
4Q22 HIGHLIGHTS TOTAL SERVICE EBITDA REVENUE REVENUE $940mn $901mn $453mn -4.9% YoY -4.4% YoY 1.2% YoY +18.6% YoY +19.2% YoY +30.1% YoY local currency local currency local currency Acceleration in local Good momentum in Strong EBITDA performance currency growth in fourth local currency service acros
Slide 7: Sale of Russian Operations
SALE OF RUSSIAN OPERATIONS Represents the optimal solution for all stakeholders Sale of Russian operations announced on 24 November 2022 1 Timeline Russian regulatory approval on 7 February 2023 Anticipated completion on or before 1 June 2023 2 Transaction details As at Dec’22, expected EV c.USD 5.0
Slide 8: 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 156.9mn subscribers 4G users and penetration Data and digital revenues, YoY trends (3 month active, million and %) (USD million and % in local currency) +2.7%
Slide 9: 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 3.2x 3.6x Share of multiplay customers 1.0x 1440 Voice only 2play 4G Multiplay READ PAY 22% 16% Churn
Slide 10: 4Q22 Group Service Revenue +19.2% YoY in Local Currency
4Q22 GROUP SERVICE REVENUE +19.2% YOY IN LOCAL CURRENCY UKRAINE PAKISTAN BANGLADESH +8.8% Service revenue +26.3% Service revenue +17.1% Service revenue -7.3% EBITDA +86.9% EBITDA -9.7% EBITDA KAZAKHSTAN UZBEKISTAN KYRGYZSTAN +20.5% Service revenue +30.2% Service revenue +15.4% Service revenue +9.0%
Slide 11: 2022 Group Service Revenue +13.9% YoY in Local Currency
2022 GROUP SERVICE REVENUE +13.9% YOY IN LOCAL CURRENCY UKRAINE PAKISTAN BANGLADESH +8.1% Service revenue +14.0% Service revenue +12.3% Service revenue -4.7% EBITDA +28.2% EBITDA -2.1% EBITDA KAZAKHSTAN UZBEKISTAN KYRGYZSTAN +20.5% Service revenue +25.3% Service revenue +13.6% Service revenue +12.8%
Slide 12: Ukraine
UKRAINE Keeping Ukraine connected 4Q22 RESULTS AND 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 53% +8.8% 24% REVENUE REVENUE +12.2% 46% +15.4% 20%
Slide 13: Pakistan
PAKISTAN Double digit YoY revenue growth gaining market share 4Q22 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (PKR Billion and %) (3 month active, million and %) Revenue share +26.3% Share of monthly active users TOTAL SERVICE 56% REVENUE REVEN
Slide 14: Kazakhstan
KAZAKHSTAN Gaining market share for the third consecutive year, sustained YoY revenue growth above 20% 4Q22 RESULTS AND 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 use
Slide 15: Bangladesh
BANGLADESH Third consecutive quarter of double-digit YoY topline growth, accelerating performance and gaining market share 4Q22 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (BDT Billion and %) (3 month active, million and %) Revenue share Share o
Slide 16: Uzbekistan
UZBEKISTAN Record-high topline growth of 30% YoY with market leading NPS 4Q22 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY YOY TRENDS PENETRATION CUSTOMERS (UZS Billion and %) (3 month active, million and %) Revenue share +30.2% Share of monthly active users TOTAL SERVICE 66% 61
Slide 17: Digital Products and Partnerships
DIGITAL PRODUCTS AND PARTNERSHIPS Driving our Digital Operator strategy JAZZCASH SIMPLY BEEPUL FINTECH 16.4mn PKR 4.2tn 246k KZT 166.8bn 285k UZS 4.1tn Monthly FY22 Gross Monthly FY22 Gross Monthly FY22 Gross active users Transaction Value active users Transaction Value active users Transaction Valu
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: 2022 Highlights
2022 HIGHLIGHTS TOTAL SERVICE EBITDA REVENUES REVENUES $3,755mn $3,600mn $1,743mn -2.4% YoY -2.4% YoY -5.3% YoY +14.0% YoY +13.9% YoY +12.6% YoY local currency local currency local currency Double digit local currency Data and digital revenues up Double digit growth in local revenue growth, accelera
Slide 20: 2022 Revenues
2022 REVENUES Double digit local currency revenue growth 2022 results YoY trends 3 REVENUE IN 2022 243 49 (608) 632 (USD million) 688 TOTAL 1,141 REVENUE 1,609 $3,755mn 3,755 -2.4% +14.0% local currency Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan Other FX impact Group Local currency
Slide 21: 2022 EBITDA and EBITDA Margin
2022 EBITDA AND EBITDA MARGIN Double digit local currency EBITDA growth 2022 results YoY trends EBITDA IN 2022 129 7 (150) (USD million) 230 (316) 347 671 EBITDA 824 $1,743mn 1,743 -5.3% +12.6% local currency Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan Other FX impact Group Local cu
Slide 22: 2022 Financial Update
2022 FINANCIAL UPDATE Strong execution of deleveraging the Group continues 31 Dec 2022 vs. 30 Sep 2022 CASH • Total cash USD 3.0 billion, with USD 2.5 billion held at the HQ level • Operations largely self funding LEVERAGE LEVERAGE DEBT INCL. LEASES1 EXCL. LEASES2 • In 4Q22 average cost of debt was
Slide 23: Group Debt and Liquidity as of December 2022
GROUP DEBT AND LIQUIDITY AS OF 31 DECEMBER 2022 Debt reduces significantly as Russia reclassified as ‘held for sale’ DEBT AND CASH CURRENCY MIX NET DEBT AND LEASES CURRENCY MIX GROSS DEBT CASH NET DEBT CAPITALIZED LEASES (EXCLUDING LEASES) 4% 2%1% 1% 12% 1% 1% 1% -1% -2% 9% 4% 15% 28% 5% 18% 10% USD
Slide 24: Russia's Debt and Liquidity as of December 2022
RUSSIA’S DEBT AND LIQUIDITY AS OF 31 DECEMBER 2022 With the sale of Russia, Group debt will reduce by c.USD 5.0 billion DEBT AND CASH NET DEBT AND LEASES GROSS DEBT CASH NET DEBT CAPITALIZED LEASES1 (EXCLUDING LEASES) USD USD USD USD 3.2bn 0.1bn 1.2bn 1.9bn Total gross debt excl. leases Leverage 0.8
Slide 25: Debt Maturity
DEBT MATURITY Sufficient cash to cover debt repayments for the next 12 months Operating companies DEBT MATURITY SCHEDULE AS OF 31 DECEMBER 2022 Headquarters (RCF) (USD billion) Headquarters (other) USD RUB PKR BDT UAH OTHER RCF (USD equivalent) 3.02 0.50 2.38 1.06 0.81 1.38 1.34 0.88 1.48 0.25 0.43
Slide 26: Debt Management Update
DEBT MANAGEMENT UPDATE AVERAGE COST OF DEBT (%) 7.7% 6.9% 7.0% 6.8% • Debt cost reflects blended rate of borrowings across our basket of 6.3% 6.7% 5.9% 6.1% different currencies, mainly USD, RUB and PKR (average USD cost 5.1%) 5.0% 5.0% 5.0% 5.0% • The lower cost of debt vs. 3Q22 is driven by the re
Slide 27: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 27 27
Slide 28: 2023 Outlook
2023 OUTLOOK Strong momentum in revenue and EBITDA expected to continue in 2023 FY 2022 Actual FY 2023 Guidance +14.0% YoY Total Revenue in local currency 10%-14% local currency growth +12.6% YoY EBITDA in local currency Capex intensity 22.1% 18%-20% • YTD February 2023 local currency revenue increa
Slide 29: 2022 Priorities Successfully Delivered
2022 PRIORITIES SUCCESSFULLY DELIVERED 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 3.0bn, 2.5bn
Slide 30: 2023 Ambitions
2023 AMBITIONS 1 Russia sale Aim to conclude Russia sale transaction by June 2023 Aim to finalize the Scheme of Arrangement 2 Focus on capital structure Material deleverage of the Group Execution on “4G for all” and “Digital Operator” 3 Driving growth and expanding margin Strengthen position for acc
Slide 31: Q&A
VEON 4Q22 RESULTS LT | MD TOFFEE hy,
Slide 32: Thank You
VEON 4Q22 RESULTS THANK YOU! ir@veon.com Tel: +31 (0)20 79 77 200 32 32
Slide 33: Appendix
VEON 4Q22 RESULTS APPENDIX 33 33
Slide 34: 4Q22 Revenues
4Q22 REVENUES Accelerating revenue growth trends in local currency across the group 64 13 (2) REVENUE IN 4Q22 140 4Q22 results YoY trends (USD million) 169 224 TOTAL 940 332 REVENUE $940mn -4.9% Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and Group +18.6% eliminations local curre
Slide 35: 4Q22 EBITDA and EBITDA Margin
4Q22 EBITDA AND EBITDA MARGIN Balanced EBITDA performance across the Group EBITDA IN 4Q22 4Q22 results YoY trends (USD million) 46 25 5 (51) 82 123 EBITDA 224 453 $453mn +1.2% +30.1% Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and Group local currency eliminations Local currency
Slide 36: Debt by Entity
DEBT BY ENTITY1 31 DECEMBER 2022 (USD MILLION EQUIVALENT) Outstanding debt Type of debt Cash-pool Entity Bonds Loans overdrafts and Total other VEON Holdings B.V. 4,723 1,055 - 5,778 Pakistan Mobile Communications Limited - 661 1 662 Banglalink Digital Communications Ltd. - 124 - 124 Private Joint S
Slide 37: Lease Liabilities (Principal)
LEASE LIABILITIES (PRINCIPAL) USD, million Local currency, million 31 December 2022 30 September 2022 31 December 2022 30 September 2022 Pakistan 227 219 51,419 49,980 Ukraine 148 128 5,398 4,694 Bangladesh 329 315 33,900 31,880 Kazakhstan 61 56 28,176 26,493 Uzbekistan 30 33 338,251 365,132 Other 5
Slide 38: Debt Maturity Schedule 2023-2024
DEBT MATURITY Debt maturity schedule 2023-2024 as of 31 December 2022 DEBT MATURITY SCHEDULE 2023-2024 (pro-forma for anticipated amendment of 2023 Notes)1 (Millions) Maturity Mar Sep Oct1 Dec1 Dec 2023 Mar Mar2 Jun Sep 2024 period 2023 2023 2023 2023 2023 other 2024 2024 2024 2024 other Outstanding
Slide 39: Ukraine
UKRAINE REVENUE EBITDA1 4G USERS AND PENETRATION (UAH Billion) (UAH Billion) (Million and %) +8.7% YoY -7.3% YoY 53% 49% 50% 4.9 4.8 44% 46% 47% 4.7 4.9 8.2 4.6 4.4 7.5 7.9 7.4 7.7 7.3 11.6 12.1 12.7 12.1 13.1 11.6 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3Q21 4Q21 1Q22 2Q22 3Q22
Slide 40: Pakistan
PAKISTAN REVENUE1 EBITDA1 4G USERS AND PENETRATION (PKR Billion) (PKR Billion) (Million and %) 56% +24.3% YoY +86.9% YoY 54% 48% 49% 51% 47% 73.9 49.8 57.2 59.4 60.1 63.5 64.2 28.4 26.6 28.1 29.7 26.5 38.2 40.6 41.3 33.8 35.0 36.7 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3Q21 4Q21
Slide 41: Kazakhstan
KAZAKHSTAN REVENUE EBITDA1 4G USERS AND PENETRATION (KZT Billion) (KZT Billion) (Million and %) +20.0% YoY +7.0% YoY 68% 67% 69% 69% 62% 64% 39.1 40.2 38.3 36.8 35.8 78.7 79.2 30.2 66.0 64.4 70.7 63.9 6.7 7.1 7.2 7.2 6.1 6.3 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3Q21 4Q21 1Q22
Slide 42: Bangladesh
BANGLADESH REVENUE EBITDA 4G USERS AND PENETRATION (BDT Billion) (BDT Billion) (Million and %) 43% +16.9% YoY -9.7% YoY 41% 37% 33% 34% 35% 5.2 5.2 4.7 4.9 5.1 4.7 13.8 14.4 12.4 13.2 12.4 12.3 16.1 13.5 15.0 11.4 12.0 12.5 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3Q21 4Q21 1Q22 2
Slide 43: Uzbekistan
UZBEKISTAN REVENUE1 EBITDA2 4G USERS AND PENETRATION (UZS Billion) (UZS Billion) (Million and %) 66% +30.3% YoY +14.4% YoY 61% 62% 62% 62% 57% 502.0 664.7 709.7 580.8 620.0 543.0 544.7 292.0 302.8 274.7 280.7 240.1 5.5 4.3 4.7 4.8 4.8 3.9 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3
Slide 44: Reconciliation Tables
RECONCILIATION TABLES Extract from VEON ltd.’s [trading update] RECONCILIATION OF CONSOLIDATED EBITDA USD million, unaudited 4Q22 4Q21 FY22 FY21 EBITDA 453 448 1,743 1,840 Depreciation (141) (159) (557) (605) Amortization (61) (53) (221) (194) Impairment gain/(loss) (4) (15) 107 (27) Gain/(loss) on
Slide 45: Reconciliation Tables
RECONCILIATION TABLES Extract from VEON ltd.’s [trading update] RECONCILIATION OF LOCAL CURRENCY AND REPORTED GROWTH RATES RECONCILIATION OF VEON CONSOLIDATED NET DEBT - 4Q22 COMPARED TO 4Q21 Total Revenue EBITDA USD million 31 December 2022 30 September 2022 30 June 2022 Forex and Forex and Local c
Slide 46: 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