Integrated Annual Report 2020

Empowering

digital futures

Integrated Annual Report 2020

Empowering

digital futures

VEON is a leading provider of connectivity and digital services serving nine countries, which together are home to 9% of the world's population.

Our companies are transforming lifestyles through technology-driven services that empower opportunity in some of the world's fastest-growing emerging markets.

Contents

Introduction	​
2020 at a Glance	1
A New Era for VEON	2
Chairman's Statement	4
Expanding Digital Connections	8
A Leader in Global Connectivity	10
CEO Statements	12
Our Purpose	22
Value Creation	​
How we Generate Value	26
Market Opportunity	28
Stakeholder Engagement	30
Our Sustainability Strategy	33
Sustainability Framework	34
Sustainability Case Studies	36
Sustainable Development	44
Materiality Assessment	47
Material Issues	48
Additional Sustainability Issues	55
Performance Summary	​
2020 Financial Review	62
Markets Review	66
How We Manage Risks	80
Our Principal Risks	84

Corporate Governance

Our Governance Structure	94
Our Board of Directors	98
Our Group Executive Committee	102
Nominating and
Corporate Governance Committee	104
Finance Committee	106
Audit and Risk Committee	108
Compensation and Talent Committee	110
Telecommunications Committee	112
Digital and Innovation Committee	114
Remuneration Report	116

Financial Information

Independent Auditor's Opinion	125
Consolidated Financial Statements	127

Additional Information

About This Report	192
Our Sustainability Standards	195
Independent Assurance Statement	196
Sustainability Data Tables	198
Glossary of Financial Terms	202
Shareholder Information	203
Report Disclaimer	204

VEON  Integrated Annual Report 2020

1

2020 at a glance

Our 2020 financial highlights

Our 2020 operational highlights

$8.0bn

$3.5bn

43.3%

213m

80m

73%

Reported

Reported

EBITDA

Total active

4G subscribers

4G population

revenue1

EBITDA

margin

subscribers

coverage

Combined mobile and fixed-line subscribers

$2.6bn

43,639

$357m

25.8m

12.3m

38%

Mobile data

Total

Equity free

Total active

Total digital

Reduction in CO

2

revenue

employees

cash flow2

users of our

wallets

emissions per unit

Number of employees

self-care apps

of data traffic

3

working across

(tonnes/terabyte)

the Group

VEON provides services	We are committed to	Headquartered in the
to 213 million customers	delivering the best mix	Netherlands, our Group
across nine attractive	of telecommunication	brings together some
markets with growing	technologies and digital	of the world's leading
economies, strong	experiences to the 680	emerging market
demographics and	million people of our	mobile operators
rising incomes.	operating countries,	and digital brands.
	enabling them to drive
	economic growth and
	improve lifestyles.

1. All financial information in this report is provided in US dollars as at December 31, 2020 unless stated otherwise.
2. After licence payments. Please see Glossary on page 202 for a full definition of this and other financial terms used throughout this report.
3. See Environmental Management section on page 55 for details.

Integrated Annual Report 2020VEON

2

A new era for VEON

2020 was a year of transformation for VEON.

We reinvested in our networks and accelerated our investment in pioneering digital services to ensure we can provide the very best experiences for our customers.

We have grown our 4G customer base and extended the reach of our high-speed networks to benefit the 680 million people for whom our markets are home.

We have transformed our operating model to empower our local leadership teams with greater responsibility for growing

their businesses.

We have strengthened the quality of our assets and returned the Group to growth after a challenging year of lockdowns.

VEON entered 2021 with an abundance of opportunity and a resolute focus on providing first-class customer service wherever we operate.

VEONIntegrated Annual Report 2020

3

Integrated Annual Report 2020  VEON