Slide 1: 2Q24 Trading Update
VEON 2Q24 TRADING UPDATE • DOUBLE-DIGIT USD GROWTH • ROBUST OPERATIONAL EXECUTION • CONFIRMING FULL YEAR GUIDANCE 8 August 2024 1 2Q24 trading update |1
Slide 2: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS – INCLUDING DEBT MATURITY AND LIQUIDITY UPDATE Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 2 2Q24 trading update |2
Slide 3: Disclaimer
DISCLAIMER VEON's results and other financial information presented in this presentation are, unless otherwise stated, prepared in accordance with International Financial Reporting Standards ("IFRS") and have not been externally reviewed and audited. The financial information included in this presen
Slide 4: Notice to Readers: Financial Information and Impact of the War in Ukraine
NOTICE TO READERS: FINANCIAL INFORMATION PRESENTED VEON's results and other financial information presented in this presentation are, unless otherwise stated, prepared in accordance with International Financial Reporting Standards ("IFRS") based on internal management reporting, are the responsibili
Slide 5: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS – INCLUDING DEBT MATURITY AND LIQUIDITY UPDATE Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 5 2Q24 trading update |5
Slide 6: VEON YoY USD and LCY Revenue Growth Performance
VEON YOY USD AND LCY REVENUE GROWTH PERFORMANCE Group total revenue, YoY Group EBITDA, YoY 23.0% 16.4% 15.1% 13.9% 15.0% 14.0% 12.6% 11.6% 13.0% 9.9% 12.1% 5.1% 10.6% 3.0% 5.0% 6.6% 0.2% -7.0% -5.3% -7.9% -1.5% -5.0% -2.4% -17.0% 2022 2023 1Q24 2Q24 2022 2023 1Q24 2Q24 USD LCY USD LCY • A dedicated
Slide 7: Q2 2024 Highlights
Q2 2024 HIGHLIGHTS TOTAL SERVICE REVENUE REVENUE EBITDA $1,026mn $987mn $459mn +12.1% YoY +11.3% YoY +10.6% YoY +15.1% YoY +14.5% YoY +13.9% YoY local currency local currency local currency H1 2024 YoY: H1 2024 YoY: H1 2024 YoY: +9.4% in USD +8.5% in USD +5.6% in USD +13.3% in local currency +12.4%
Slide 8: Q2 2024 Group Overview
Q2 2024 GROUP OVERVIEW Ukraine Pakistan Bangladesh USD LCY USD LCY USD LCY Service revenue Service revenue Service revenue +0.1% +9.1% +26.2% +22.8% -1.7% +4.6% EBITDA EBITDA EBITDA +0.8% +9.8% +23.0% +19.6% -3.4% +2.7% Kazakhstan Uzbekistan Kyrgyzstan USD LCY USD LCY USD LCY Service revenue Service
Slide 9: Multiplay Driving Revenue Growth
MULTIPLAY DRIVING REVENUE GROWTH Mobile customer base Steady growth in 4G Revenues from 4G users uptake drive top line growth 157mn subscribers A3M 4G users and penetration Multiplay and Doubleplay 4G (B2C) revenue (3 months active, million) (USD million) 135mn subscribers A1M 63% Multiplay 2Play 4G
Slide 10: Our Journey Towards Direct Digital Revenues
OUR JOURNEY TOWARDS DIRECT DIGITAL REVENUES We are focused on growing our direct Direct digital revenues digital revenues USD, million 10% • Our core digital vertical include: fintech, % in total revenues healthcare, education, entertainment, Full year enterprise services (AdTech, Cloud, 7% 1H Softw
Slide 11: More Time as a Multiplay User Generates Higher ARPU
MORE TIME AS A MULTIPLAY USER GENERATES HIGHER ARPU Multiplay (MP) segment cohorts by tenure Multiplay share in total customer base Multiplay ARPU vs Single Play voice ARPU Multiplay ARPU vs 4G customer ARPU (MP ARPU / SP voice ARPU) (MP ARPU / 4G ARPU) 43% 11.6x 2.1x 11.2x 10.8x 37% 1.8x 9.9x 13% 1
Slide 12: Ukraine Q2 2024
UKRAINE Q2 2024 Proven resilience and return to strong growth 2Q24 RESULTS AND YOY TRENDS B2C SEGMENT REVENUES IN 4G USERS AND DIRECT DIGITAL REVENUES SERVICE REVENUE PENETRATION AND % IN TOTAL REVENUE (billion) (3 month active, million) (million) 2% TOTAL SERVICE Multiplay 2Play 4G Other 9.3 60% RE
Slide 13: Helsi: Largest Digital Healthcare Platform in Ukraine
HELSI The largest digital healthcare platform in Ukraine Users registered in the system 28 million +11.1% YoY Active healthcare institutions 1,600 +2% YoY Active doctors and specialists 38,000+ +12.5% YoY Appointments in 2Q24 2.3 million +27.7% YoY 13 2Q24 trading update |13
Slide 14: Pakistan Q2 2024
PAKISTAN Q2 2024 Revenue and EBITDA YoY growth in twenties 2Q24 RESULTS AND YOY TRENDS B2C SEGMENT REVENUES IN 4G USERS AND DIRECT DIGITAL REVENUES SERVICE REVENUE PENETRATION AND % IN TOTAL REVENUE (billion) (3 month active, million) (billion) TOTAL SERVICE Multiplay 2Play 4G Other 22% REVENUE REVE
Slide 15: Digital Financial Services in Pakistan
DIGITAL FINANCIAL SERVICES IN PAKISTAN JazzCash and Mobilink Bank DFS 2Q24 RESULTS AND YOY TRENDS The most popular domestic mobile Pakistan’s largest domestic digital financial services app in Pakistan TOTAL bank with over 20% of loans REVENUE issued digitally MAU MAU Dost app 17.8bn 17.7 million PK
Slide 16: Tamasha: Pakistan's Leading Entertainment Platform
TAMASHA Pakistan’s leading domestic entertainment platform MAU 18.0 million 4.2x YoY Guest users 50.6% +32.1 p.p. YoY Total # of sessions 293.2 million 2.8x YoY ICC World Cup 2024: Ad Revenues PKR 1,252 million new revenue streams keep momentum ARPU Pakistan Digital Award 2024: PKR 615 Best Online S
Slide 17: Kazakhstan Q2 2024
KAZAKHSTAN Q2 2024 High double-digit revenue and EBITDA growth, gaining market share 2Q24 RESULTS AND YOY TRENDS B2C SEGMENT REVENUES IN 4G USERS AND DIRECT DIGITAL REVENUES SERVICE REVENUE PENETRATION AND % IN TOTAL REVENUE (billion) (3 month active, million) (billion) Multiplay 2Play 4G Other 10%
Slide 18: IZI: Youth-focused Mobile Entertainment Operator
IZI Youth-focused mobile entertainment operator in Kazakhstan Entertainment platform Mobile operator The app offers a variety of With the highest NPS score in unique and new content Kazakhstan MAU Monthly active mobile customers 572,800+ 287,000+ +51.6% YoY +50.2% YoY Guest users “I Join” NPS 49.2%
Slide 19: Bangladesh Q2 2024
BANGLADESH Q2 2024 Continuing growth in a challenging environment 2Q24 RESULTS AND YOY TRENDS B2C SEGMENT REVENUES IN 4G USERS AND DIRECT DIGITAL REVENUES SERVICE REVENUE PENETRATION AND % IN TOTAL REVENUE (billion) (3 month active, million) (million) Multiplay 2Play 4G Other 2% TOTAL SERVICE 52% 15
Slide 20: Toffee: Largest Bangladeshi Mobile Entertainment Platform
TOFFEE The largest Bangladeshi mobile entertainment platform MAU 12.3 million +37.0% YoY Guest users 76.0% +8.2p.p. YoY Total # of sessions 86.2 million -32.8% YoY Ad and subscription revenues Exclusive BDT 250 million rights to ICC nation-wide ARPU streaming in Bangladesh BDT 322 2.8x higher than s
Slide 21: Uzbekistan Q2 2024
UZBEKISTAN Q2 2024 Double-digit revenue growth, reached c.74% 4G user penetration 2Q24 RESULTS AND YOY TRENDS B2C SEGMENT REVENUES IN 4G USERS AND DIRECT DIGITAL REVENUES SERVICE REVENUE PENETRATION AND % IN TOTAL REVENUE (billion) (3 month active, million) (billion) 5% Multiplay 2Play 4G Other TOTA
Slide 22: OQ: Digital-first Operator in Uzbekistan
OQ Digital-first operator in Uzbekistan Entertainment platform Mobile operator The app offers a variety of With the highest NPS score in unique and new content Uzbekistan MAU Monthly active mobile customers 133,000+ 36,000+ Guest users ARPU 95,000+ UZS 30,000+ (ARPU Beeline Uzbekistan: UZS 33,900) A
Slide 23: DO1440 Flywheel Spinning Faster
DO1440 FLYWHEEL SPINNING FASTER, PLANTING FUTURE GROWTH Our digital portfolio of assets as of 30 June 2024 Share of direct digital Total digital MAU across all LTM Gross Transaction Value LTM Total usage time, Total digital-only MAU minutes revenues in YTD revenues services and platforms 30 million
Slide 24: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS – INCLUDING DEBT MATURITY AND LIQUIDITY UPDATE Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 24 2Q24 trading update |24
Slide 25: Q2 2024 Revenues
Q2 2024 REVENUES REVENUE, FX DIFFERENCES IN 2Q24 (USD million) 67 13 (2) FX differences 2Q24 results YoY trends 141 224 TOTAL 236 REVENUE +15.1% 1,026 Local currency 347 $1,026mn +12.1% Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and VEON SERVICE eliminations REVENUE Local curren
Slide 26: Q2 2024 EBITDA and EBITDA Margin
Q2 2024 EBITDA AND EBITDA MARGIN EBITDA, FX DIFFERENCES IN 2Q24 (USD million) FX differences 2Q24 results YoY trends 24 4 (44) 52 125 EBITDA 140 +13.9% 158 459 Local currency $459mn +10.6% Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and VEON eliminations Local currency +19.6% +9.
Slide 27: Q2 2024 Debt and Liquidity Update
Q2 2024 DEBT AND LIQUIDITY UPDATE CASH • Group cash USD 722 million, of which USD 375 million at the HQ level. • In addition to the USD 722 million, we also hold USD 258 million USD USD, million 30 Jun 2024 31 Mar 2024 QoQ and EUR denominated domestic Ukrainian sovereign bonds (classified as investm
Slide 28: Debt Management Update
DEBT MANAGEMENT UPDATE AVERAGE COST OF DEBT (%) 22.2% 11.9% • Average cost of debt, with respect to bank loans and bonds, reflect a blended rate of borrowings, mainly in USD, PKR and BDT. 9.7% • PKR debt, with average cost of 22.2%, accounted for c.27% of total 3.6% Group debt excl. leases in Q2 202
Slide 29: Debt Maturity as of 30 June 2024
DEBT MATURITY AS OF 30 JUNE 2024 DEBT MATURITY SCHEDULE AS OF 30 JUNE 2024 (USD billion) USD RUB PKR BDT OTHER 1.18 0.78 0.45 0.17 0.19 2024 2025 2026 2027 >2028 • In Q2 2024, VEON executed the early redemption of its September 2025 and September 2026 RUB bonds in full on 18 June 2024 and (economica
Slide 30: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS – INCLUDING DEBT MATURITY AND LIQUIDITY UPDATE Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 30 2Q24 trading update |30
Slide 31: 2024 Outlook: Confirming Full Year Guidance
2024 OUTLOOK Confirming full year guidance FY 2024 H1 2024 H1 2024 Guidance1 Actual “like-for-like” Total Revenue, YoY in local 16%-18% growth 13% growth 16% growth currency EBITDA, YoY in local 18%-20% growth 10% growth 16% growth currency LTM Capex intensity 18%-19% 18% 18% • As a result of the sp
Slide 32: Q&A
VEON 2Q24 TRADING UPDATE Q&A 32 2Q24 trading update |32
Slide 33: Thank You
VEON 2Q24 TRADING UPDATE THANK YOU! ir@veon.com Tel: +31 (0)20 79 77 200 33 2Q24 trading update |33
Slide 34: Appendix
VEON 2Q24 TRADING UPDATE APPENDIX 34 2Q24 trading update |34
Slide 35: Our Mobile Financial Services
OUR MOBILE FINANCIAL SERVICES Provide a broad portfolio of branchless banking services for customers JazzCash Simply Beepul Pakistan Kazakhstan Uzbekistan 2Q24 ACT YoY ACT YoY ACT YoY MAU (million) 17.7 20.3% 1.7 6.5x 0.3 8.2% MAU app users (million) 11.1 74.1% 1.7 6.5x 0.3 8.5% LTM Total transactio
Slide 36: Our Entertainment Platforms
OUR ENTERTAINMENT PLATFORMS Offer new experiences and unique content to our customers Tamasha Toffee BeeTV Kyivstar TV Kinom IZI Pakistan Bangladesh Kazakhstan Ukraine Uzbekistan Kazakhstan 2Q24 ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 18.0 4.2x 12.3 37.0% 0.9 25.3% 1.6 51.7% 0.
Slide 37: Our Self-Service Platforms
OUR SELF-SERVICE PLATFORMS Transforming into super-apps My Kyivstar Simosa My Beeline MyBL Beeline My Beeline Ukraine Pakistan Kazakhstan Bangladesh Uzbekistan Kyrgyzstan 2Q24 ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 5.1 40.8% 15.2 22.9% 4.6 12.7% 8.1 17.3% 4.5 6.6% 0.4 -9.2% MA
Slide 38: Digital Operator Strategy Delivering Results
DIGITAL OPERATOR STRATEGY DELIVERING RESULTS Multiplay (B2C) segment ARPU Multiple Churn Impact Single play and 22% 27% no play revenue 17% Double play revenue 3.9x 1.0x Multiplay revenue 3.4x 0.7x 0.5x 40% 50% 32% Share of 1.0x multiplay users 2Q22 2Q23 2Q24 Voice only 2play 4G Multiplay Voice only
Slide 39: Group Debt and Liquidity Currency Mix as of June 2024
GROUP DEBT AND LIQUIDITY CURRENCY MIX AS OF 30 JUNE 2024 Gross debt Cash, cash Net debt AS OF 30 June 2024 Capitalised Gross debt excluding equivalents excluding USD equivalent, million leases leases and deposits leases USD 1,711 5 1,706 424 1,282 RUB 167 - 167 - 167 PKR 1,077 299 778 7 771 BDT 565
Slide 40: Outstanding Debt by Entity
OUTSTANDING DEBT BY ENTITY AS OF 30 JUNE 2024 (USD equivalent, million) Type of debt Total Overdrafts and Entity Bonds Loans outstanding vendor financing debt 1 VEON Holdings B.V. 1,684 - - 1,684 Pakistan Mobile Communications Ltd. 54 712 3 769 Banglalink Digital Communications Ltd. - 179 4 183 Unit
Slide 41: Debt Maturity as of 30 June 2024
DEBT MATURITY AS OF 30 JUNE 2024 DEBT MATURITY SCHEDULE AS OF 30 JUNE 2024 (USD billion) USD RUB PKR BDT OTHER 1.18 0.78 0.45 0.17 0.19 2024 2025 2026 2027 >2028 • In Q2 2024, VEON executed the early redemption of its September 2025 and September 2026 RUB bonds in full on 18 June 2024 and (economica
Slide 42: Debt Maturity
DEBT MATURITY Debt maturity schedule 2024-2025 as of 30 June 2024 DEBT MATURITY SCHEDULE 2024-2025 (Millions) Maturity period Oct 2024 2024 other Feb 2025 Apr 2025 Jun 2025 Sep 2025 2025 other Outstanding debt, 54 113 23 496 105 22 130 USD equivalent Outstanding debt, PKR 15,000 MIX PKR 6,340 USD 49
Slide 43: Lease Liabilities (Principal)
LEASE LIABILITIES (PRINCIPAL) USD, million Local currency, million 30 June 2024 31 March 2024 30 June 2023 31 June 2024 31 March 2024 31 June 2023 Pakistan 299 279 215 83,180 77,629 61,809 Ukraine 170 174 172 6,907 6,831 6,274 Bangladesh 385 425 323 45,181 46,456 34,906 Kazakhstan 116 106 79 54,639
Slide 44: Reconciliation Tables
RECONCILIATION TABLES Extract from 2Q24 trading update RECONCILIATION OF LOCAL CURRENCY NORMALISED, LOCAL CURRENCY AND REPORTED YOY GROWTH RATES - 2Q24 Total Revenue EBITDA LCY, normalised One-offs LCY FX and other Reported LCY, normalised One-offs LCY FX and other Reported Ukraine 9.5% - 9.5% (9.0%
Slide 45: Reconciliation Tables
RECONCILIATION TABLES Extract from 2Q24 trading update RECONCILIATION OF AMOUNTS: REPORTED, IN CONSTANT CURRENCY, AND ONE-OFFS IN CONSTANT CURRENCY - 6M24 Constant FX, Constant FX, USD, million Reported Constant FX One-offs USD, million Reported Constant FX One-offs adjusted for one-offs adjusted fo
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. Average revenue per user (“ARPU”) measures the mont