VEON to Hold Capital Markets Day 2024, Sharing Mid-Term Ambition to Accelerate Local Currency Topline Growth to 16%-19% CAGR

06/06/2024

06 Jun 2024

VEON to Hold Capital Markets Day 2024, Sharing Mid-Term Ambition to Accelerate Local Currency Topline Growth to 16%-19% CAGR Dubai and Amsterdam, 6 June 2024 07:00am CET: VEON Ltd. (NASDAQ: VEON, Euronext Amsterdam: VEON), a global digital operator that provides converged connectivity and online services ( VEON or, together with its subsidiaries, the Group ), today holds its Capital Markets Day ( CMD 2024 ), sharing its medium-term financial and operational ambitions, as well as its growth strategy through 2027.

In its CMD 2024 materials, the Group will disclose the following key ambitions through 2027:

Medium-term revenue growth at a compound annual growth rate ( CAGR ) from 2023 to 2027 of 16%-19% in local currency.

Medium-term EBITDA growth with a CAGR from 2023 to 2027 of 19%-22% in local currency.

EBITDA margin expansion by 3 percentage points by 2027.

USD 900 million to 1.0 billion in equity free cashflow ( EFCF ) by 2027.

Focusing on its DO1440 and AI1440 strategy, increasing the share of multiplay customers to 50% by the end of 2027 and capturing greater wallet share through expansion in adjacent verticals.

The Group's medium-term ambitions also include decreasing leverage; increasing the share of localized debt, with the share of USD and EUR-denominated debt decreasing to below 50%. The Group aims to maintain a leverage ratio below 1.5x and extend the average tenor of its debt from 3.4 years in Q1 2024 to over 4 years by 2027.

Over the past three years, we have transformed our companies into digital operators and demonstrated that emerging markets are in fact an exciting growth opportunity for global investors. Our aspirations from 2023 through 2027 set the bar higher as we aim for 16%-19% CAGR growth in our Group revenues, 19%-22% CAGR growth in our Group EBITDA and close to USD 1 billion in equity free cash flow generation. As our investors will hear at our Capital Markets Day, we are optimistic about the potential of our markets, and confident in the foundations that we built with our digital operator strategy to capture wallet share. Furthermore, we are also set to unlock greater growth opportunities with augmented intelligence as we launch our AI1440 focus, said Kaan Terzioglu, VEON Group CEO. We remain focused on turning this operational success vision into investor value with further steps in delayering our business and enhancing the accessibility of our assets to local investors.

Ambition 2021 CMDPerformance delivered2027 Ambition

10-14% Revenue & EBITDA

3-year CAGR, in local currency

15.4% revenue and 14.8% EBITDA CAGR in local currency from 2021 CMD 16-19% revenue CAGR between 2023 and 2027 in local currency

Mid-single digit revenue growth, 3-year CAGR, in USD -1.7% revenue growth, CAGR in USD from 2021 CMD 19-22% EBITDA CAGR between 2023 and 2027 in local currency

3 p.p. EBITDA margin expansion by 2024 Flat EBITDA margin from 2021 CMD, marginally maintained 3 p.p. EBITDA margin expansion by 2027

<20% last twelve months ( LTM ) capex intensity in 2024 19% LTM capex intensity in 1Q24;

USD 434 million EFCF in 2023

USD 900 million to USD 1.0 billion EFCF by 2027

c.70% 4G user penetration by 2024 62% 4G user penetration in 1Q24

25% of customer base in multiplay B2C segment in 1Q24

DO1440 and AI1440 strategy:

50% of customer base in multiplay B2C segment by 2027

During VEON's Capital Markets Day 2024, to be held at 10:00am Gulf Standard Time today virtually and in-person in Dubai, Group CEO Kaan Terzioglu and Group CFO Joop Brakenhoff will present the details of the Group's strategy and key ambitions. In addition, the CEOs of VEON's Group's operating companies will provide updates on each of their companies' ambitions through 2027, including the following:

Operating companyAmbition by 2027

Pakistan

Revenue CAGR from 2023 to 2027 of 19-22%

Non-connectivity revenue to reach 24% of total revenue by 2027

50% of total revenue to come from digital businesses

Ukraine

Revenue CAGR from 2023 to 2027 of 10-13%

Non-connectivity revenue c.10% in total revenue

Non-connectivity revenue growth of >50%

EFCF growth of 10-15%

Kazakhstan

Revenue CAGR from 2023 to 2027 of 14-17%

Capex intensity reduction by 4 p.p. from 2023

EBITDA margin increase by 1 p.p. from 2023

EFCF growth of 100%

Note: All figures for Kazakhstan include TNS and will be adjusted if the sale completes

Bangladesh

Revenue CAGR from 2023 to 2027 of 15-18%

EBITDA margin improvement to over 45%

Non-connectivity revenue to reach 20% of total revenue

Deliver annual EFCF of USD 100 million

Uzbekistan

Revenue CAGR from 2023 to 2027 of 26-29%

Data & digital revenue CAGR from 2023 to 2027 of 28-31%

AdTech revenue CAGR from 2023-2027 of 101-104%

Going forward, the Group aims to upstream dividends from all operating companies without restrictions, including from Ukraine, following an eventual softening of capital controls.

VEON 2024 CMD webcast and presentation

To register and access the CMD webcast, please click here or copy and paste this link to the address bar of your browser: https://veon-2024-investor-day.open-exchange.net/registration

Once registered, you will receive a registration confirmation message at the email address provided during registration with a link to access the webcast.

The full CMD presentation will be made available on the VEON website at https://www.veon.com/investors/ following the event.

About VEON

VEON is a digital operator that provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than 7% of the world's population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. Headquartered in Amsterdam, VEON is listed on NASDAQ and Euronext. For more infor

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VEON to Hold Capital Markets Day 2024, Sharing Mid-Term Ambition to Accelerate Local Currency Topline Growth to 16%-19% CAGR

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