VEON : Special purpose unaudited interim condensed consolidated financial statements VEON Holdings B.V. as of and for the nine and three-month periods ended September 30, 2020

Unaudited interim condensed consolidated financial statements

VEON Holdings B.V.

(a wholly-owned subsidiary of VEON Ltd.)

As of and for the nine and three-month periods ended September 30, 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	9
2	Segment information	9
3	Income taxes	12
Investing activities of the Group	13
4	Significant transactions	13
5	Property and equipment	16
6	Intangible assets	17
Financing activities of the Group	19
7	Investments, debt and derivatives	19
8	Cash and cash equivalents	21
9	Dividends and capital distributions	22
Additional information	23
10	Related parties	23
11	Risks, commitments, contingencies and uncertainties	23
12	Events after the reporting period	24
13	Basis of preparation of the interim condensed consolidated financial statements	25

VEON Holdings B.V.	| Special purpose unaudited interim condensed consolidated financial statements as of and for the period	1
ended September 30,	2021

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT

for the nine and three-month periods ended September 30:

		Nine-month period		Three-month period
(In millions of U.S. dollars, except per share amounts)	Note	2021	2020*	2021	2020*
Service revenues		5,279	5,113	1,821	1,684
Sale of equipment and accessories		357	266	147	108
Other revenue		96		84		33		28
Total operating revenues	2	5,732	5,463	2,001	1,820
Other operating income		2	3	1	1
Service costs		(1,031)	(998)	(346)	(339)
Cost of equipment and accessories		(346)	(261)	(139)	(100)
Selling, general and administrative expenses		(1,751)	(1,697)	(601)	(530)
Depreciation		(1,141)	(1,084)	(391)	(352)
Amortization		(218)	(231)	(79)	(73)
Impairment (loss) / reversal		(5)	(790)		-	(790)
Gain / (loss) on disposal of non-current assets		(9)	(16)	(5)	(4)
Operating profit		1,233	389	441	(367)
Finance costs		(515)	(562)	(190)	(176)
Finance income		16	49	10	14
Other non-operating gain / (loss)		7	101		-		-
Net foreign exchange gain / (loss)		-		(9)		(8)		7
Profit / (loss) before tax		741	(32)	253	(522)
Income tax expense	3	(280)	(237)	(107)	(102)
Profit / (loss) from continuing operations		461	(269)	146	(624)
Profit / (loss) after tax from discontinued operations	4	88		59		68		24
Profit / (loss) for the period		549	(210)	214	(600)
Attributable to:
The owners of the parent (continuing operations)		424	(243)	133	(587)
The owners of the parent (discontinued operations)		40	27	31	11
Non-controlling interest		85		6		50		(24)
		549	(210)	214	(600)

• Prior year comparatives are adjusted following the classification of Algeria as a discontinued operation (see Note 4)

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 September 30,	2021

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the nine and three-month periods ended September 30:

		Nine-month period		Three-month period
(In millions of U.S. dollars)	Note	2021	2020	2021	2020
Profit / (loss) for the period		549	(210)	214	(600)
Items that may be reclassified to profit or loss
Foreign currency translation	4	(94)	(707)	(101)	(219)
Other		-	8		-	6
Items reclassified to profit or loss
Other		2	(13)		-	(8)
Other comprehensive income / (loss) , net of tax		(92)	(712)	(101)	(221)
Total comprehensive income / (loss) , net of tax		457	(922)	113	(821)
Attributable to:
The owners of the parent		403	(848)	72	(793)
Non-controlling interests		54		(74)		41		(28)
		457	(922)	113	(821)

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 September 30,	2021

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of:

(In millions of U.S. dollars)	Note	September		December
30, 2021	31, 2020
Assets
Non-current assets
Property and equipment	5	6,400	6,853
Intangible assets	6	3,123	4,142
Investments and derivatives	7	1,379	1,951
Deferred tax assets		185	186
Other assets		201		179
Total non-current assets		11,288	13,311
Current assets
Inventories		112	111
Trade and other receivables		786	690
Investments and derivatives*	7	378	263
Current income tax assets		35	70
Other assets		307	329
Cash and cash equivalents*	8	1,468		1,573
Total current assets		3,086	3,036
Assets classified as held for sale	4	2,346		-
Total assets		16,720	16,347
Equity and liabilities
Equity
Equity attributable to equity owners of the parent		1,734	1,528
Non-controlling interests		892		850
Total equity		2,626	2,378
Non-current liabilities
Debt and derivatives	7	8,606	9,119
Provisions		91	141
Deferred tax liabilities		174	127
Other liabilities		31	27
Total non-current liabilities		8,902	9,414
Current liabilities
Trade and other payables*		1,959	2,171
Debt and derivatives*	7	1,605	1,252
Provisions		93	110
Current income tax payables		212	175
Dividend payable		2		-
Other liabilities		760		847
Total current liabilities		4,631	4,555
Liabilities associated with assets held for sale	4	561		-
Total equity and liabilities		16,720		16,347

• Certain comparative amounts have been reclassified to conform to the current period presentation, refer to Note 13for further details.
  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 September 30,	2021