VEON : Special purpose unaudited interim condensed consolidated financial statements VEON Holdings B.V. as of and for the three-month period ended March 31, 2021

Special purpose

unaudited interim condensed consolidated financial statements

VEON Holdings B.V.

(a wholly-owned subsidiary of

VEON Ltd.)

As of and for the three-month period ended March 31, 2021

TABLE OF CONTENTS

Interim condensed consolidated income statement	2
Interim condensed consolidated statement of comprehensive income	3
Interim condensed consolidated statement of financial position	4
Interim condensed consolidated statement of changes in equity	5
Interim condensed consolidated statement of cash flows	6
General information about the Group	7
1	General information	7
Operating activities of the Group	8
2	Segment information	8
3	Income taxes	10
Investing activities of the Group	11
4	Significant events & transactions	11
5	Property and equipment	12
6	Intangible assets	13
Financing activities of the Group	14
7	Investments, debt and derivatives	14
8	Cash and cash equivalents	16
9	Dividends and capital distributions	16
Additional information	17
10	Related parties	17
11	Risks, commitments, contingencies and uncertainties	17
12	Events after the reporting period	17
13	Basis of preparation of the interim condensed consolidated financial statements	18

VEON Holdings B.V. | Special purpose unaudited interim condensed consolidated financial statements as of and for the period	1
ended March 31, 2021

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT for the three-month period ended March 31

(In millions of U.S. dollars)	Note	2021	2020
Service revenues		1,853	1,978
Sale of equipment and accessories		105	88
Other revenue		31	31
Total operating revenues	2	1,989	2,097
Other operating income		1	-
Service costs		(365)	(380)
Cost of equipment and accessories		(102)	(89)
Selling, general and administrative expenses		(628)	(668)
Depreciation		(415)	(415)
Amortization		(71)	(91)
Impairment (loss) / reversal		(6)	-
Gain / (loss) on disposal of non-current assets		(4)	(7)
Operating profit / (loss)		399	447
Finance costs		(168)	(205)
Finance income		(3)	17
Other non-operating gain / (loss)		5	15
Net foreign exchange gain / (loss)		8	(29)
Profit / (loss) before tax		241	245
Income tax expense	3	(92)	(80)
Profit / (loss) for the period		149	165
Attributable to:
The owners of the parent		141	153
Non-controlling interest		8	12
		149	165

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

VEON Holdings B.V. | Special purpose unaudited interim condensed consolidated financial statements as of and for the period	2
ended March 31, 2021

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the three-month period ended March 31

(In millions of U.S. dollars)	Note	2021	2020
Profit / (loss) for the period		149	165
Items that may be reclassified to profit or loss
Foreign currency translation	4	(2)	(581)
Other		(2)	2
Items reclassified to profit or loss
Other		1	(5)
Other comprehensive income / (loss), net of tax		(3)	(584)
Total comprehensive income / (loss), net of tax		146	(419)
Attributable to:
The owners of the parent		147	(364)
Non-controlling interests		(1)	(55)
		146	(419)

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

VEON Holdings B.V. | Special purpose unaudited interim condensed consolidated financial statements as of and for the period	3
ended March 31, 2021

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of

(In millions of U.S. dollars)	Note	March 31,	December
2021	31, 2020
Assets
Non-current assets
Property and equipment	5	6,889	6,853
Intangible assets	6	4,099	4,142
Investments and derivatives	7	1,972	1,951
Deferred tax assets		203	186
Other assets		193	179
Total non-current assets		13,356	13,311
Current assets
Inventories		110	111
Trade and other receivables		740	690
Investments and derivatives	7	351	338
Current income tax assets		72	70
Other assets		400	329
Cash and cash equivalents	8	1,110	1,498
Total current assets		2,783	3,036
Total assets		16,139	16,347
Equity and liabilities
Equity
Equity attributable to equity owners of the parent		1,711	1,528
Non-controlling interests		849	850
Total equity		2,560	2,378
Non-current liabilities
Debt and derivatives	7	8,851	9,119
Provisions		137	141
Deferred tax liabilities		134	127
Other liabilities		30	27
Total non-current liabilities		9,152	9,414
Current liabilities
Trade and other payables		2,073	2,202
Debt and derivatives	7	1,122	1,221
Provisions		120	110
Current income tax payables		204	175
Other liabilities		908	847
Total current liabilities		4,427	4,555
Total equity and liabilities		16,139	16,347

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

VEON Holdings B.V. | Special purpose unaudited interim condensed consolidated financial statements as of and for the period	4
ended March 31, 2021