Slide 1: Strong Growth Across the Group - 2Q21 Results
VEON STRONG GROWTH ACROSS THE GROUP 2Q21 RESULTS 1 August 30 2021
Slide 2: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. 2Q21 FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 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. 2Q21 FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 4
Slide 5: Key Highlights: Strong growth across the Group
KEY HIGHLIGHTS Strong growth across the Group 2Q21 TOTAL SERVICE DATA EBITDA REVENUE REVENUE REVENUE $2.065bn $1.927bn $0.724bn $0.879bn +11.3% YoY +9.5% YoY +18.7% YoY +10.7% YoY local currency local currency local currency local currency +9.2% YoY reported +7.4% YoY reported +16.7% YoY reported +8
Slide 6: 2Q21 Portfolio Performance
2Q21 PORTFOLIO PERFORMANCE YoY local currency revenue growth across all our markets RUSSIA PAKISTAN KAZAKHSTAN +6% +2% +21% +15% +27% +21% Revenue EBITDA Revenue EBITDA Revenue EBITDA UKRAINE ALGERIA BANGLADESH +18% +17% +6% +15% +7% +4% Revenue EBITDA Revenue EBITDA Revenue EBITDA UZBEKISTAN GEORGI
Slide 7: VEON Group: Digital operator model driving performance
VEON GROUP Digital operator model driving performance across business verticals INFRASTRUCTURE DIGITAL OPERATOR DIGITAL PRODUCTS Mobile # physical sites 115k (+7%YoY) subscribers from 205mn to 214mn Multiplay 4G customer base +4.5% YoY 12mn (+67% YoY) from 32% to 43% MAU # towers 50k penetration +11
Slide 8: Russia: Service revenue and EBITDA back to growth
RUSSIA Service revenue and EBITDA back to growth 4G USERS AND PENETRATION DOUBLE/MULTIPLAY 4G CUSTOMERS1: TOTAL SERVICE (3 month active, million and %) PROMOTING DIGITAL ENGAGEMENT REVENUE REVENUE 70bn 62bn 42% 51% 60% 70% RUB RUB 35% 50% +6.2% YoY +2.7% YoY 24.2 18.0 20.1 37% 44% 29% 2Q19 2Q20 2Q21
Slide 9: Ukraine: Continued strong growth in revenue and EBITDA
UKRAINE Continued strong growth in revenue and EBITDA 4G USERS AND PENETRATION DOUBLE/MULTIPLAY 4G CUSTOMERS: (3 month active, million and %) PROMOTING DIGITAL ENGAGEMENT TOTAL SERVICE REVENUE REVENUE 52% 7.1bn 7.1bn 40% 31% 40% UAH UAH 25% 20% +18.1% YoY +18.0% YoY 10.3 7.8 36% 5.1 26% 16% 2Q19 2Q2
Slide 10: Pakistan: Impressive growth across all metrics
PAKISTAN Impressive growth across all metrics 4G USERS AND PENETRATION DOUBLE/MULTIPLAY 4G CUSTOMERS: TOTAL SERVICE (3 month active, million and %) PROMOTING DIGITAL ENGAGEMENT REVENUE REVENUE 46% 57.2bn 52.5bn 44% 34% PKR PKR 30% 23% +21.5% YoY +20.8% YoY 19% 30.8 19.1 24% 11.1 16% 10% 2Q19 2Q20 2Q
Slide 11: Kazakhstan: Record levels of 4G penetration
KAZAKHSTAN Record levels of 4G penetration driving strong performance 4G USERS AND PENETRATION DOUBLE/MULTIPLAY 4G CUSTOMERS: TOTAL SERVICE (3 month active, million and %) PROMOTING DIGITAL ENGAGEMENT REVENUE REVENUE 59% 70% 58.9bn 57.3bn 44% 57% KZT KZT 45% 34% +26.9% YoY +24.4% YoY 5.7 4.2 48% 3.5
Slide 12: Bangladesh: Growth enabled by superior digital capabilities
BANGLADESH Revenue and EBITDA growth enabled by superior digital capabilities 4G USERS AND PENETRATION DOUBLE/MULTIPLAY 4G CUSTOMERS: TOTAL SERVICE (3 month active, million and %) PROMOTING DIGITAL ENGAGEMENT REVENUE REVENUE 34% 11.8bn 11.6bn 29% BDT BDT 18% 21% +6.9% YoY +7.0 YoY 9.9 9% 8% 5.9 17%
Slide 13: Other Markets: Customer 4G adoption remains the driving force
OTHER MARKETS Customer 4G adoption remains the driving force UZBEKISTAN ALGERIA GEORGIA KYRGYZSTAN • 61% 4G population • 62% 4G population • 91% 4G population • 92% 4G population coverage coverage coverage coverage • 32% YoY increase in 4G • 21% YoY increase in 4G • 25% YoY increase in 4G • 27% YoY
Slide 14: VEON Digital Products
VEON DIGITAL PRODUCTS Growing range of digital services and partnerships JAZZ CASH SMART MONEY SIMPLY 13.1mn 82k 299k 69k Monthly active Monthly active Monthly active Users users merchants users in the first month +61.4% YoY +60.1% YoY +11.7% QoQ after launch TOFFEE TV BEELINE TV RUSSIA KYIVSTAR TV
Slide 15: Enhanced Commitment to ESG Principles
ENHANCED COMMITMENT TO ESG PRINCIPLES Important achievements on various fronts ENVIRONMENT SOCIAL GOVERNANCE VEON UPGRADED TO ‘A’ FROM ‘BBB’ IN 38% 60 in CO2 Reduction 60 60 support for Wide shareholder MSCI MOST RECENT emissions per unit of 81,095 Participants in our mobile literacy our new governa
Slide 16: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. 2Q21 FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 16
Slide 17: 2Q21 Highlights
2Q21 HIGHLIGHTS Strong growth across the Group TOTAL SERVICE DATA EBITDA REVENUE REVENUE REVENUE $2,065mn $1,927mn $724mn $879mn +11.3% YoY +9.5% YoY +18.7% YoY +10.7% YoY local currency local currency local currency local currency +9.2% YoY reported +7.4% YoY reported +16.7% YoY reported +8.7% YoY
Slide 18: 2Q21 Revenue
2Q21 REVENUE Continued growth in local currency REVENUE IN 2Q21 (USD million) TOTAL 137 47 20 -8 2,065 REVENUE 163 140 257 $2,065mn 370 939 +11.3% YoY local currency +9.2% YoY reported Russia Pakistan Ukraine Algeria Bangladesh Kazakhstan Uzbekistan Other Eliminations Group Local 6.2% 21.5% 18.1% 5.
Slide 19: 2Q21 EBITDA and Net Income
2Q21 EBITDA AND NET INCOME Project Optimum: progress on cost efficiencies EBITDA IN 2Q21 (USD million) 56 18 18 -45 EBITDA 71 879 72 161 $879mn 173 355 +10.7% YoY local currency +8.7% YoY reported Russia Ukraine Pakistan Kazakhstan Algeria Bangladesh Uzbekistan Other HQ and Group Local eliminations
Slide 20: 2Q21 Operational Cash Flow Build-up
2Q21 OPERATIONAL CASH FLOW BUILD-UP Momentum created by investment continues OPERATIONAL CAPEX IN 2Q21 (USD million) OPERATIONAL CAPEX 505 18 16 3 4 1 24 $505mn 53 89 297 +4.6% YoY local currency +2.5% YoY reported Russia Pakistan Ukraine Kazakhstan Algeria Bangladesh Uzbekistan Other HQ and Group e
Slide 21: 2Q21 Equity Free Cash Flow and Net Debt
2Q21 EQUITY FREE CASH FLOW AND NET DEBT EQUITY FREE CASH FLOW GENERATION IN 2Q21 (USD million) 879 -505 LEVERAGE 2.4X -126 -133 stable QoQ -67 -1 4 25 75 -12 63 EBITDA Op Capex Lease Net financial Net tax paid Movements Working Other Equity Free License Equity Free (excl. license payments costs in p
Slide 22: FY 2021 Outlook: Improved Guidance
FY 2021 OUTLOOK Improved 2021 Guidance Old FY 2021 1H21 Actual New FY 2021 Guidance Guidance1 +7.6YoY High single-digit local Total Revenue in local currency Mid single-digit local currency growth currency growth in revenue +7.4% YoY and EBITDA Mid to high single-digit EBITDA in local currency local
Slide 23: Agenda
AGENDA 1. OPENING Nik Kershaw 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. 2Q21 FINANCIAL RESULTS Serkan Okandan 4. CLOSING REMARKS Kaan Terzioğlu 23
Slide 24: FY 2021 Priorities
FY 2021 PRIORITIES Operational delivery on track 1 4G network rollout 43% 4G penetration, +11p.p. YoY Revenue up 6.2% YoY in local currency 2 Russia back to YoY growth Mobile customers up 0.6% YoY 3 Double-digit growth in Ukraine, Pakistan and Kazakhstan +16% YoY in aggregate in local currency +40%
Slide 25: Appendix
_—— cc y So & aw. ae er Y APPENDIX Beeline"
Slide 26: Russia: Service revenue and EBITDA back to YoY growth
RUSSIA Service revenue and EBITDA back to YoY growth REVENUE EBITDA 4G USERS AND PENETRATION1 (RUB Billion) (RUB Billion) (Million and %) +6.2% YoY +2.2% YoY 51% 48% 49% 28.2 27.7 42% 46% 71.9 25.7 26.2 26.8 26.3 41% 67.5 69.6 68.4 69.6 65.5 21.7 22.6 23.1 24.2 20.7 20.1 1Q20 2Q20 3Q20 4Q20 1Q21 2Q2
Slide 27: Ukraine: Continued strong growth
UKRAINE Continued strong growth in revenue and EBITDA REVENUE EBITDA 4G USERS AND PENETRATION (UAH Billion) (UAH Billion) (Million and %) +18.1% YoY +17.4% YoY 40% 6.7 6.8 7.1 4.7 4.8 38% 6.5 4.4 4.5 36% 6.0 6.0 4.0 4.1 31% 34% 30% 9.3 9.7 10.3 7.8 7.8 8.8 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1Q20 2Q20 3Q2
Slide 28: Pakistan: Healthy growth across all metrics
PAKISTAN Healthy growth across all metrics REVENUE EBITDA1 4G USERS AND PENETRATION (PKR Billion) (PKR Billion) (Million and %) +21.5% YoY +14.5% YoY 44% 41% 38% 31.4 35% 57.2 29% 30% 50.7 52.3 55.0 24.7 49.3 47.1 22.9 21.7 23.2 24.8 22.8 28.7 30.8 22.2 25.0 17.7 19.1 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1
Slide 29: Kazakhstan: Record levels of 4G penetration
KAZAKHSTAN Record levels of 4G penetration driving strong performance REVENUE EBITDA1 4G USERS AND PENETRATION (KZT Billion) (KZT Billion) (Million and %) 59% +26.9% YoY +21.6% YoY 56% 54% 60% 50% 32.5 30.8 44% 44% 50% 26.9 27.7 58.9 24.6 25.3 27.7 40% 50.9 54.5 53.7 46.0 46.4 30% 5.2 5.3 5.7 4.8 20
Slide 30: Bangladesh: Revenue and EBITDA growth
BANGLADESH Revenue and EBITDA growth enabled by superior digital capabilities REVENUE EBITDA 4G USERS AND PENETRATION (BDT Billion) (BDT Billion) (Million and %) +4.0% YoY 29% +6.9% YoY 26% 24% 5.0 5.1 4.7 4.8 21% 11.8 4.6 4.6 18% 11.6 11.5 11.4 11.4 11.1 16% 9.0 9.9 7.0 8.0 5.4 5.9 1Q20 2Q20 3Q20 4
Slide 31: Financial Results: Group capital structure
FINANCIAL RESULTS Group capital structure as at 30 June 2021 LEGEND: USD RUB PKR BDT UAH DZD EUR OTHER CASH GROSS DEBT CURRENCY MIX NET DEBT CURRENCY MIX CURRENCY MIX1 (EXCLUDING LEASES) (EXCLUDING LEASES AFTER HEDGING2) 5% 5% 3% 1% 2% -3% 7% 6% 9% 8% USD 49% 31% USD USD 54% 4% 1.2bn 7.7bn 58% 40% 6
Slide 32: Debt by Entity
DEBT BY ENTITY1 30 JUNE 2021 USD MILLION EQUIVALENT Outstanding debt Type of debt Cash-pool Entity Bonds Loans overdrafts2 and Total other VEON Holdings B.V. 4,843 1,935 - 6,778 Pakistan Mobile Communications Limited - 526 22 548 Private Joint Stock Company Kyivstar - 205 - 205 Banglalink Digital Co
Slide 33: Reconciliation Tables
RECONCILIATION TABLES extract from VEON Ltd.’s Earnings Release RECONCILIATION OF CONSOLIDATED EBITDA RECONCILIATION OF CAPEX USD mln 2Q21 2Q20 1H21 1H20 USD mln unaudited 2Q21 2Q20 1H21 1H20 Unaudited Operational Capex 505 492 929 860 EBITDA 879 809 1,754 1,729 Adding back purchase of licenses 85 5
Slide 34: Reconciliation Tables
RECONCILIATION TABLES extract from VEON Ltd.’s Earnings Release RECONCILIATION OF ORGANIC AND REPORTED GROWTH RATES RECONCILIATION OF VEON CONSOLIDATED NET DEBT 2Q21 compared to 2Q20 Total Revenue EBITDA USD mln 30 June 2021 31 March 2021 31 December 2020 Forex, Armenia Forex, Armenia Net debt 8,511
Slide 35: Main Definitions
MAIN DEFINITIONS Capital expenditures (capex) are purchases of new equipment, new construction, upgrades, licenses, software, other long-lived assets and related reasonable costs incurred prior to intended use of the non-current asset, accounted at the earliest event of advance payment or delivery.