VEON : Special purpose unaudited interim condensed consolidated financial statements VEON Holdings B.V. as of and for the three-month period ended March 31, 2019

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, 2019

TABLE OF CONTENTS
Interim condensed consolidated income statement ......................................................................	3
Interim condensed consolidated statement of comprehensive income ......................................	4
Interim condensed consolidated statement of financial position .................................................	5
Interim condensed consolidated statement of changes in equity ................................................	6
Interim condensed consolidated statement of cash flows ............................................................	7
General information about the Group ..............................................................................................	8
1	General information .....................................................................................................................................	8
Operating activities of the Group......................................................................................................	9
2	Segment information....................................................................................................................................	9
3	Income taxes .............................................................................................................................................	11
Investing activities of the Group.....................................................................................................	12
4	Significant transactions..............................................................................................................................	12
5	Property and equipment ............................................................................................................................	13
6	Intangible assets........................................................................................................................................	13
Financing activities of the Group....................................................................................................	14
7	Other financial assets and liabilities...........................................................................................................	14
8	Cash and cash equivalents........................................................................................................................	16
9	Dividends and capital distributions.............................................................................................................	17
Additional information .....................................................................................................................	18
10	Related parties...........................................................................................................................................	18
11	Risks, commitments, contingencies and uncertainties...............................................................................	19
12	Events after the reporting period................................................................................................................	19
13	Basis of preparation of the interim condensed consolidated financial statements .....................................	20

VEON Holdings B.V. | Special purpose unaudited interim condensed consolidated financial statements as of and for the period ended March 31, 2019

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INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT

for the three-month period ended March 31

(In millions of U.S. dollars, except per share amounts)	Note	2019	2018*
Service revenues		2,005	2,157
Sale of equipment and accessories		89	61
Other revenues / other income		31	33
Total operating revenues	2	2,125	2,251
Service costs		(370)	(439)
Cost of equipment and accessories		(90)	(59)
Selling, general and administrative expenses		(683)	(839)
Depreciation		(402)	(354)
Amortization		(93)	(123)
Impairment (loss) / reversal		(6)	(3)
Gain / (loss) on disposal of non-current assets		(7)	(17)
Operating profit		474	417
Finance costs		(207)	(211)
Finance income		16	16
Other non-operating gain / (loss), net		5	(12)
Net foreign exchange gain / (loss)		12	11
Profit / (loss) before tax from continuing operations		300	221
Income tax expense	3	(81)	(120)
Profit / (loss) for the period from continuing operations		219	101
Profit / (loss) after tax from discontinued operations		-	(130)
Profit / (loss) for the period from discontinued operations		-	(130)
Profit / (loss) for the period		219	(29)
Attributable to:

The owners of the parent (continuing operations) The owners of the parent (discontinued operations) Non-controlling interest

1. 77

• (130)

1. 24

219(29)

• Prior year comparatives are restated following the disposal of Italy Joint Venture and retrospective reversal of reclassification of Deodar assets and liabilities as held for sale and retrospective recognition of depreciation and amortization charges in respect of Deodar in 2018

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

ended March 31, 2019

3

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the three-month period ended March 31

(In millions of U.S. dollars)	Note	2019	2018*
Profit / (loss) for the period		219	(29)
Items that may be reclassified to profit or loss
Net movement on cash flow hedges		-	(3)
Share of other comprehensive income / (loss) of joint ventures		-	(12)
Foreign currency translation		52	33

Other comprehensive income / (loss) for the period, net of tax Total comprehensive income / (loss) for the period, net of tax Attributable to:

1. 18

1. (11)

The owners of the parent	249	(25)
Non-controlling interests	22	14
		271	(11)

• Prior year comparatives are restated following the disposal of Italy Joint Venture and retrospective reversal of reclassification of Deodar assets and liabilities as held for sale and retrospective recognition of depreciation and amortization charges in respect of Deodar in 2018

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

ended March 31, 2019

4

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of

			March 31,	December 31,
(In millions of U.S. dollars)	Note	2019	2018
Assets
Non-current assets
Property and equipment	5		7,091	4,925
Intangible assets	6		1,808	1,841
Goodwill	6		3,951	3,816
Deferred tax assets			190	197
Other assets			150	193
Total non-current assets			13,190	10,972
Current assets
Inventories			166	141
Trade and other receivables			953	691
Other financial assets	7		1,721	761
Current income tax assets			114	112
Other assets			308	357
Cash and cash equivalents	8		1,225	1,767
Assets classified as held for sale			21	17
Total current assets			4,508	3,846
Total assets			17,698	14,818
Equity and liabilities
Equity
Equity attributable to equity owners of the parent			4,775	4,180
Non-controlling interests			(898)	(891)
Total equity			3,877	3,289
Non-current liabilities
Other financial liabilities	7		8,329	6,567
Provisions			107	93
Deferred tax liabilities			174	180
Other liabilities			27	37
Total non-current liabilities			8,637	6,877
Current liabilities
Trade and other payables			1,858	1,775
Other financial liabilities	7		1,734	1,290
Provisions			159	186
Current income tax payables			195	196
Other liabilities			1,229	1,201
Liabilities associated with assets held for sale			9	4
Total current liabilities			5,184	4,652
Total equity and liabilities			17,698	14,818

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

ended March 31, 2019

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