VEON : Special purpose unaudited interim condensed consolidated financial statements VEON Holdings B.V. (a wholly-owned subsidiary of VEON Ltd.) as of and for the six and three-month periods ended June 30, 2022

Unaudited interim condensed consolidated financial statements

VEON Holdings B.V.

(a wholly-owned subsidiary of

VEON Ltd.)

As of and for the six and three-month periods ended June 30, 2022

Notice to Reader: VEON's results 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 responsibility of management, and have not been externally audited, reviewed, or verified.

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	8
1	General information	8
Operating activities of the Group	11
2	Segment information	11
3	Income taxes	13
Investing activities of the Group	14
4	Significant transactions	14
5	Held for sale and discontinued operations	16

• Property and equipment

7	Intangible assets	16
Financing activities of the Group	20
8	Investments, debt and derivatives	20
9	Cash and cash equivalents	22
10	Issued capital	##
11	Dividends paid and proposed	24
Additional information	25
12	Related parties	25
13	Risks, commitments, contingencies and uncertainties	26
14	Events after the reporting period	26
15	Basis of preparation of the interim condensed consolidated financial statements	27

VEON Holdings B.V. | Special purpose unaudited interim condensed consolidated financial statements as of and for the period	1
ended June 30, 2022

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT

for the six and three-month periods ended June 30:

		Six-month period		Three-month period
(In millions of U.S. dollars, except per share amounts)	Note	2022	2021*	2022	2021*
Service revenues		3,556	3,458	1,885	1,764
Sale of equipment and accessories		194	210	84	105
Other revenue		72		63		35		32
Total operating revenues	2	3,822	3,731	2,004	1,901
Other operating income		5	1	3	1
Service costs		(654)	(685)	(353)	(359)
Cost of equipment and accessories		(179)	(207)	(76)	(106)
Selling, general and administrative expenses		(1,238)	(1,151)	(628)	(575)
Depreciation		(781)	(750)	(420)	(374)
Amortization		(170)	(139)	(85)	(74)
Impairment (loss) / reversal		(480)	(5)	(10)	(3)
Gain / (loss) on disposal of non-current assets		18	(4)	8		-
Gain / (loss) on disposal of subsidiaries		(26)		-	(25)		-
Operating profit		317	791	418	411
Finance costs		(406)	(325)	(225)	(159)
Finance income		24	6	12	9
Other non-operating gain / (loss)		2	7	(11)	2
Net foreign exchange gain / (loss)		187		8		79		-
Profit / (loss) before tax from continuing operations		124	487	273	263
Income tax expense	3	(53)	(172)	(82)	(85)
Profit / (loss) from continuing operations		71		315		191		178
Profit / (loss) after tax from discontinued operations	5	122	20	61	8
Profit / (loss) for the period		193	335	252	186
Attributable to:
The owners of the parent (continuing operations)		45	291	176	155
The owners of the parent (discontinued operations)		56	9	28	4
Non-controlling interest		92		35		48		27
		193		335		252		186

• Prior period comparatives are adjusted following the classification of Algeria as a discontinued operation (see Note 5).

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 June 30, 2022

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the six and three-month periods ended June 30:

		Six-month period		Three-month period
(In millions of U.S. dollars)	Note	2022	2021	2022	2021
Profit / (loss) for the period		193	335	252	186
Items that may be reclassified to profit or loss
Foreign currency translation	4	(30)	7	218	9
Other		-		-		-	2
Items reclassified to profit or loss
Other		-	2		-	1
Other comprehensive income / (loss) , net of tax		(30)	9	218	12
Total comprehensive income / (loss) , net of tax		163	344	470	198
Attributable to:
The owners of the parent		108	331	430	184
Non-controlling interests		55		13		40		14
		163	344	470	198

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 June 30, 2022

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of

(In millions of U.S. dollars)	Note	June 30,		December
2022	31, 2021
Assets
Non-current assets
Property and equipment	6	8,317	6,705
Intangible assets	7	3,058	3,220
Investments and derivatives	8	1,473	1,412
Deferred tax assets		233	227
Other assets		224		217
Total non-current assets		13,305	11,781
Current assets
Inventories		115	111
Trade and other receivables		884	797
Investments and derivatives	8	570	456
Current income tax assets		93	70
Other assets		337	333
Cash and cash equivalents	9	2,274		2,170
Total current assets		4,273	3,937
Assets classified as held for sale	5	1,901	1,882
Total assets		19,479	17,600
Equity and liabilities
Equity
Equity attributable to equity owners of the parent		2,082	1,981
Non-controlling interests		964		913
Total equity		3,046	2,894
Non-current liabilities
Debt and derivatives	8	9,444	9,397
Provisions		103	85
Deferred tax liabilities		17	115
Other liabilities		57	36
Total non-current liabilities		9,621	9,633
Current liabilities
Trade and other payables		1,919	2,072
Debt and derivatives	8	3,420	1,535
Provisions		71	100
Current income tax payables		222	228
Dividend payable		4		-
Other liabilities		804		746
Total current liabilities		6,440	4,681
Liabilities associated with assets held for sale	5	372	392
Total equity and liabilities		19,479	17,600

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 June 30, 2022