Slide 1: 3Q23 Trading Update
VEON 3Q23 TRADING UPDATE RAISING FULL-YEAR REVENUE AND EBITDA GUIDANCE, RETURN TO USD REVENUE GROWTH, EXIT FROM RUSSIA COMPLETED 20 November 2023 1
Slide 2: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 2 3Q23 Trading Update|2
Slide 3: Disclaimer
DISCLAIMER VEON’s results presented in this document 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 document is preliminary and is based on a
Slide 4: Notice to Readers: Financial Information Presented
NOTICE TO READERS: FINANCIAL INFORMATION PRESENTED 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 res
Slide 5: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 5 3Q23 Trading Update|5
Slide 6: VEON 2.0 – Best in Class Digital Operator
VEON 2.0 – BEST IN CLASS DIGITAL OPERATOR Key fundamental trends and themes • Across our geographies, 4G data consumption, B2B growth, digital product 1 Double-digit growth monetization and pricing should support double-digit topline growth EBITDA margin will expand through operating leverage and co
Slide 7: 3Q23 Highlights
3Q23 HIGHLIGHTS TOTAL SERVICE EBITDA REVENUE REVENUE $945mn $913mn $444mn +6.1% YoY +6.9% YoY +17.0% YoY +19.3% YoY +19.8% YoY +30.6% YoY local currency local currency local currency Balanced growth across Strong uptake in Multiplay Inflationary pricing, ARPU markets, disciplined segment, higher ARP
Slide 8: Higher Growth Portfolio Post Russia Exit
HIGHER GROWTH PORTFOLIO POST RUSSIA EXIT With the reduced net debt and leverage Group service revenue performance Cash and cash equivalents normalised to 1Q20, in constant currency 2-yr CAGR: (USD billion) 150 without Russia +17.2% 3.3 2.4 2.2 130 1.7 with Russia +10.9% 3Q22 2Q23 3Q23 Oct'23 110 Net
Slide 9: Strong Execution Despite Challenging Macro
STRONG EXECUTION DESPITE CHALLENGING MACRO Service revenue performance by country normalised to 1Q21, in local currency 2-yr CAGR: 180 Kazakhstan +21.1% 160 VEON 2-yr Uzbekistan +19.3% CAGR +17.2% Pakistan +19.8% 140 Bangladesh +13.5% Ukraine +13.0% 120 100 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q
Slide 10: Accelerating Top Line, Growing Above Inflation
ACCELERATING TOP LINE, GROWING ABOVE INFLATION Revenue performance YoY in local currency Group A Group B 21.3% Weighted annual inflation* 19.4% 14.1% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Note: Group revenue YoY performance is normalised for one-offs. Group A is: Bangladesh, Kazakhstan, Kyrgyzstan
Slide 11: 3Q23 Group EBITDA +30.6% YoY in Local Currency
3Q23 GROUP EBITDA +30.6% YOY IN LOCAL CURRENCY Ukraine Pakistan Bangladesh +13.6% revenue Service +29.0% Service revenue +15.2% Service revenue +26.2% EBITDA +36.4% EBITDA +18.9% EBITDA Kazakhstan Uzbekistan Kyrgyzstan +19.0% Service revenue +15.6% Service revenue +19.0% Service revenue +33.7% EBITD
Slide 12: 4G Growth Driving Revenues
4G GROWTH DRIVING REVENUES Mobile customer base Steady growth in 4G Revenues from 4G users uptake drive top line growth 4G users and penetration Multiplay and Doubleplay 4G (B2C) revenue 156mn mobile subscribers (USD million) (3 month active, million) -0.7% YoY Multiplay 2Play 4G 58.8% 51.7% 44.8% 1
Slide 13: Ukraine
UKRAINE Keeping Ukraine connected and investing in its future 3Q23 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY AND DOUBLEPLAY YOY TRENDS PENETRATION 4G REVENUE (B2C)1 (UAH Billion) (3 month active, million) (UAH billion) TOTAL SERVICE 57% Multiplay 2Play 4G +13.6% REVENUE REVEN
Slide 14: Helsi
HELSI The largest digital healthcare platform in Ukraine Users registered in the system 26 million +5.1% YTD Active healthcare institutions 1,400+ +32.1% YoY Active doctors and specialists 35,000+ +19.7% YoY Appointments in 3Q23 1.9 million +20.2% YoY Note: # of users registered in the system as at
Slide 15: Ukraine: Reiterating Commitment to the Country's Future
UKRAINE Reiterating our commitment to the country’s future • VEON HQ in the Netherlands, Nasdaq- and Euronext-listed • VEON has diverse institutional and retail investors and 1 Ownership has no controlling or majority shareholder • VEON is the sole and rightful owner of Kyivstar • VEON and Rakuten s
Slide 16: Pakistan
PAKISTAN Continued growth above 20% in revenue and EBITDA, gaining market share 3Q23 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY AND DOUBLEPLAY YOY TRENDS PENETRATION 4G REVENUE (B2C) (PKR Billion) (3 month active, million) (PKR billion) TOTAL SERVICE +29.0% 61% Multiplay 2Play
Slide 17: Digital Financial Services in Pakistan
DIGITAL FINANCIAL SERVICES IN PAKISTAN JazzCash and Mobilink Bank 3Q23 DFS EBITDA The most popular mobile financial PKR 2.5 bn Pakistan’s largest services app in Pakistan PKR 4.7 bn digital bank improvement MAU Gross Loan Portfolio 15.4 million PKR 54.4 billion -7.9% YoY; +4.5% QoQ +21.5% YoY Active
Slide 18: JazzCash/Mobilink Bank vs. M-Pesa
DIGITAL FINANCIAL SERVICES IN PAKISTAN JazzCash/Mobilink Bank vs. M-Pesa (Safaricom, Kenya) The most popular mobile financial Kenya Pakistan services app and the largest digital Population (mln) as of 31 December 2022 55.1 227.0 bank in Pakistan Nominal GDP in 2022 (USD bln) 119.7 374.7 MAU 15.4 mil
Slide 19: Tamasha
TAMASHA Pakistan’s leading entertainment platform MAU 14.5 million 4.4x YoY non-Jazz users of Tamasha 63.4% +27.2 p.p. YoY Total # of sessions 228 million 3.3x YoY Asia Cricket Cup: Ad Revenues PKR 183 million new revenue streams ARPU of Jazz customers watching Tamasha Pakistan Digital Award 2023: P
Slide 20: Kazakhstan
KAZAKHSTAN High-teens revenue and EBITDA growth, continuing to gain market share 3Q23 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY AND DOUBLEPLAY YOY TRENDS PENETRATION 4G REVENUE (B2C) (KZT Billion) (3 month active, million) (KZT billion) TOTAL SERVICE 69% 73% Multiplay 2Play 4
Slide 21: IZI
IZI First mobile entertainment operator in Kazakhstan Entertainment platform Mobile operator The app offers a variety of The number 1 platform for number unique and new content portability in Kazakhstan with the highest NPS score and lower churn MAU Monthly active mobile customers 455,000 219,000 4.
Slide 22: Bangladesh
BANGLADESH High double-digit growth gaining further market share 3Q23 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY AND DOUBLEPLAY YOY TRENDS PENETRATION 4G REVENUE (B2C) (BDT Billion) (3 month active, million) (BDT billion) TOTAL SERVICE +15.2% 49% Multiplay 2Play 4G +11.8% REVE
Slide 23: Toffee
TOFFEE The largest mobile entertainment platform in Bangladesh MAU 12.1 million +72.2% YoY non-Banglalink users of Toffee 70.0% Total # of sessions 139.7 million +31.0% YoY Asia Cricket Cup: Ad Revenues BDT 14.9 million new revenue streams ARPU of Banglalink customers watching Toffee BDT 285 2.6 tim
Slide 24: Uzbekistan
UZBEKISTAN Rising 4G coverage and 4G users drive data and digital services use 3Q23 RESULTS AND YOY TRENDS SERVICE REVENUE AND 4G USERS AND MULTIPLAY AND DOUBLEPLAY YOY TRENDS PENETRATION 4G REVENUE (B2C) (UZS Billion) (3 month active, million) (UZS billion) TOTAL SERVICE 71% Multiplay 2Play 4G +15.
Slide 25: Our Digital Portfolio
OUR DIGITAL PORTFOLIO A backbone of DO 1440 Strategy Total MAU across all services and platforms Total usage time YTD, minutes 101.3 million 49.6 billion +39.5% YoY Read Pay Non-VEON cumulative MAU # of sessions YTD 7.0 billion of our apps 30.0 million As of 30 October 2023 25 3Q23 Trading Update|25
Slide 26: Our Mobile Financial Services
OUR MOBILE FINANCIAL SERVICES Provide a broad portfolio of branchless banking services for customers JazzCash Simply Beepul Balance.KG Pakistan Kazakhstan Uzbekistan Kyrgyzstan 31 October 2023, YTD ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 15.6 -8.0% 0.4 2.5x 0.3 1.6% 0.2 -25.2% MAU app users (m
Slide 27: Our Entertainment Platforms
OUR ENTERTAINMENT PLATFORMS Offer new experiences and unique content to our customers Tamasha Toffee BeeTV Kyivstar TV Beeline TV IZI Pakistan Bangladesh Kazakhstan Ukraine Uzbekistan Kazakhstan 31 October 2023, YTD ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 19.9 4.0x 12.9 77.8% 0
Slide 28: Our Self-Service Platforms
OUR SELF-SERVICE PLATFORMS Transforming into super-apps My Kyivstar JazzWorld My Beeline MyBL My Beeline My Beeline Ukraine Pakistan Kazakhstan Bangladesh Uzbekistan Kyrgyzstan 31 October 2023 ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 3.7 7.1% 13.3 14.3% 4.4 20.7% 7.6 42.7% 4.7 2
Slide 29: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 29 3Q23 Trading Update|29
Slide 30: Q3 2023 Revenues
Q3 2023 REVENUES Revenue growth in reported currency REVENUE IN 3Q23 (USD million) 65 15 (2) 3Q23 results YoY trends FX differences 146 204 TOTAL 238 REVENUE 945 $945mn 279 +6.1% +19.3% local currency Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzstan HQ and VEON, eliminations reported SER
Slide 31: Q3 2023 EBITDA and EBITDA Margin
Q3 2023 EBITDA and EBITDA Margin High-teens EBITDA growth in reported currency EBITDA, FX DIFFERENCES IN 3Q23 23 6 (25) (USD million) 56 (9) 3Q23 results YoY trends FX differences 118 152 EBITDA 453 444 $444mn 124 +17.0% +30.6% local currency Pakistan Ukraine Kazakhstan Bangladesh Uzbekistan Kyrgyzs
Slide 32: Q3 2023 Capex and Capex Intensity
Q3 2023 CAPEX AND CAPEX INTENSITY Capex is a function of balanced 4G network expansion and asset light strategy Capex and LTM Capex intensity (USD million and %) 22.2% 17.8% • LTM capex intensity of 17.8% is within our FY 2023 guidance, and is trending lower with 13.9% capex intensity in the quarter
Slide 33: Q3 2023 Debt and Liquidity Update
Q3 2023 DEBT AND LIQUIDITY UPDATE As of 30 September 2023 CASH • Total cash USD 2.2 billion, with USD 1.8 billion held at the HQ level. LEVERAGE LEVERAGE • Operations remain self-funding. EXCL. LEASES INCL. LEASES 0.86x 1.25x DEBT 1.34x in 2Q23 1.68x in 2Q23 • In September, VEON Holdings has redeeme
Slide 34: 9M23 Highlights
9M23 HIGHLIGHTS TOTAL SERVICE EBITDA REVENUE REVENUE $2,745mn $2,647mn $1,245mn -2.5% YoY -1.9% YoY -3.5% YoY +18.2% YoY +18.6% YoY +18.1% YoY local currency local currency local currency In line with FY 2023 guidance Growth supported by EBITDA margin at 45.4% with of 16%-19% local currency inflatio
Slide 35: Liquidity and Capital Structure After the Reporting Period
LIQUIDITY AND CAPITAL STRUCTURE AFTER THE REPORTING PERIOD Optimized capital structure and de-levered balance sheet Liquidity and capital structure As of As of (USD, billions) 30 September 2023 31 October 2023 Cash and cash equivalents, of which 2.2 1.7 At HQ level 1.8 1.3 Gross debt, of which 4.3 4
Slide 36: Debt Maturity as of 31 October 2023
DEBT MATURITY AS OF 31 OCTOBER 2023 Following the events after the reporting period DEBT MATURITY SCHEDULE AS OF 31 OCTOBER 2023 (USD billion) Operating companies USD RUB PKR BDT OTHER RCF Headquarters (RCF) Headquarters (other) 1.7 0.54 1.55 1.17 0.81 1.06 0.34 0.23 0.14 0.25 0.01 0.25 Cash and cas
Slide 37: Debt Management Update
DEBT MANAGEMENT UPDATE AVERAGE COST OF DEBT (%) 23.3% • Average cost of debt reflects blended rate of borrowings, mainly in 22.2% USD and PKR. 15.7% • PKR debt with average cost of 23.3% accounted for c.15% of total Group debt excl. leases in 3Q23 8.1% 8.0% 7.4% • The higher cost of debt vs. 2Q23 is
Slide 38: Agenda
AGENDA 1. OPENING Faisal Ghori 2. HIGHLIGHTS & BUSINESS UPDATE Kaan Terzioğlu 3. TRADING RESULTS Joop Brakenhoff 4. CLOSING REMARKS Kaan Terzioğlu 5. Q&A Kaan Terzioğlu, Joop Brakenhoff 38 3Q23 Trading Update|38
Slide 39: 2023 Outlook and Earnings
2023 OUTLOOK AND EARNINGS Factors impacting financial performance, and near-term outlook Positive impact of the reversal of a tax • The recorded revenues by PKR 6.6 billion (c.USD 30 million) 1 provision in Pakistan in October 2022 • EBITDA by PKR 20.2 billion (c.USD 91 million) Extraordinary costs
Slide 40: 2023 Ambitions
2023 AMBITIONS We are progressing towards our full-year ambitions, yet addressing new challenges 1 Exit from Russia • Done • Reiterating our commitment to the future of Ukraine 2 Ukraine • Engagement with Ukrainian authorities and lawmakers • Support from US, UK and EU investors • Execution on “4G f
Slide 41: 2023 Outlook
2023 OUTLOOK We have raised our full-year revenue and EBITDA guidance, revised outlook for the Group’s capex intensity FY 2023 Guidance FY 2023 Guidance1 9M23 Actual (revised) Total Revenue, YoY in local currency 16%-19% growth +18.2% 18%-20% growth EBITDA, 18%-20% growth 10%-14% growth +18.1% YoY i
Slide 42: Q&A
VEON 3Q23 TRADING UPDATE Q&A 42
Slide 43: Thank You
VEON 3Q23 TRADING UPDATE THANK YOU! ir@veon.com Tel: +31 (0)20 79 77 200 43
Slide 44: Appendix
VEON 3Q23 TRADING UPDATE APPENDIX 44
Slide 45: Digital Operator Strategy Delivering Results
DIGITAL OPERATOR STRATEGY DELIVERING RESULTS Multiplay customers (B2C) ARPU Multiple Single play and no play revenue Double play revenue 3.6x 3.8x Multiplay revenue Share of multiplay customers 1.0x Voice only 2play 4G Multiplay Read 24% Pay Churn Impact 19% 15% 1.0x 35% 42% 0.6x 0.5x 28% 3Q21 3Q22
Slide 46: Our Digital Portfolio as of September 2023
OUR DIGITAL PORTFOLIO AS OF 30 SEPTEMBER 2023 A backbone of DO 1440 Strategy Total MAU across all services and Total usage time in 3Q23, minutes platforms 93.4 million 14.2 billion +32.3% YoY Read Pay # of sessions in 3Q23 non-VEON users of our apps 23.4 million 2.1 billion 46 3Q23 Trading Update|46
Slide 47: Our Mobile Financial Services
OUR MOBILE FINANCIAL SERVICES Provide a broad portfolio of branchless banking services for customers JazzCash Simply Beepul Balance.KG Pakistan Kazakhstan Uzbekistan Kyrgyzstan 3Q23 ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 15.4 -7.9% 0.3 2.0x 0.3 4.9% 0.1 -28.2% MAU app users (million) 8.2 14.5
Slide 48: Our Entertainment Platforms
OUR ENTERTAINMENT PLATFORMS Offer new experiences and unique content to our customers Tamasha Toffee BeeTV Kyivstar TV Beeline TV IZI Pakistan Bangladesh Kazakhstan Ukraine Uzbekistan Kazakhstan 3Q23 ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 14.5 4.4x 12.1 72.2% 0.8 24.1% 1.1 32.
Slide 49: Our Self-Service Platforms
OUR SELF-SERVICE PLATFORMS Transforming into super-apps My Kyivstar JazzWorld My Beeline MyBL My Beeline My Beeline Ukraine Pakistan Kazakhstan Bangladesh Uzbekistan Kyrgyzstan 3Q23 ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY ACT YoY MAU (million) 3.6 6.1% 13.5 15.3% 4.5 25.1% 7.6 48.0% 4.4 17.1% 0.4 2.
Slide 50: Group Debt and Liquidity as of September 2023
GROUP DEBT AND LIQUIDITY AS OF 30 SEPTEMBER 2023 Currency mix Capitalised Gross debt Cash and cash Net debt Gross debt (USD equivalent, million) leases excluding leases deposits excluding leases USD / EUR 2,713 7 2,706 1,900 806 RUB 140 - 140 - 140 PKR 752 228 524 13 511 BDT 415 329 86 30 56 UAH 179
Slide 51: Debt by Entity
DEBT BY ENTITY1 30 SEPTEMBER 2023 (USD million equivalent) Outstanding debt Type of debt Overdrafts and Entity Bonds Loans Total other VEON Holdings B.V. 1,757 1,055 - 2,812 Pakistan Mobile Communications Limited - 511 6 517 Banglalink Digital Communications Ltd. - 91 - 91 Other 7 6 29 42 Total 1,76
Slide 52: Debt Maturity as of 30 September 2023
DEBT MATURITY AS OF 30 SEPTEMBER 2023 DEBT MATURITY SCHEDULE AS OF 30 SEPTEMBER 2023 (USD billion) Operating companies USD RUB PKR BDT OTHER RCF Headquarters (RCF) Headquarters (other) 2.2 0.43 1.06 1.54 1.16 0.81 0.70 0.34 0.23 0.05 0.14 Cash and cash 0.25 equivalents 1 (USD billion) 2023 2024 2025
Slide 53: Debt Maturity Schedule 2023-2024
DEBT MATURITY Debt maturity schedule 2023-2024 as of 30 September 2023 DEBT MATURITY SCHEDULE 2023-2024 (Millions) Maturity period Oct 2023 2023 other Mar 2024 Mar 20241 Sep 2024 2024 other Outstanding debt, USD 39 14 21 250 21 45 equivalent Outstanding debt, debt USD 39 MIX PKR 6,027 USD 250 PKR 6,
Slide 54: Lease Liabilities (Principal)
LEASE LIABILITIES (PRINCIPAL) USD, million Local currency, million 30 September 2023 30 June 2023 30 September 2023 30 June 2023 Pakistan 228 215 65,743 61,809 Ukraine 179 172 6,541 6,274 Bangladesh 329 323 36,182 34,906 Kazakhstan 81 79 38,404 36,055 Uzbekistan 34 35 414,884 397,867 Kyrgyzstan 5 5
Slide 55: 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
Slide 56: Reconciliation Tables
RECONCILIATION TABLES Extract from VEON Ltd.’s 3Q23 trading update RECONCILIATION OF LOCAL CURRENCY AND REPORTED GROWTH RATES - 3Q23 COMPARED TO 3Q22 Total Revenue EBITDA Forex and Forex and Local currency Reported Local currency Reported Other Other Ukraine 13.8% (5.2%) 8.6% 26.2% (5.8%) 20.4% Paki