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

Special purpose

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, 2020

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	14
6	Intangible assets	15
Financing activities of the Group	18
7	Investments, debt and derivatives	18
8	Cash and cash equivalents	21
9	Dividends and capital distributions	21
Additional information	22
10	Related parties	22
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	24

VEON Holdings B.V. | Special purpose unaudited interim condensed consolidated financial statements as of and for the period	1
ended September 30, 2020

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	2020			2019		2020	2019

Service revenues

Sale of equipment and accessories Other revenue

Total operating revenues

Other operating income

Service costs

Cost of equipment and accessories

Selling, general and administrative expenses Depreciation

Amortization

Impairment (loss) / reversal

Gain / (loss) on disposal of non-current assets Gain / (loss) on disposal of subsidiaries

Operating profit / (loss)

Finance costs

Finance income

Other non-operating gain / (loss)

Net foreign exchange gain / (loss)

Profit / (loss) before tax

Income tax expense

Profit / (loss) for the period

Attributable to:

The owners of the parent

Non-controlling interest

	5,629	6,162	1,856	2,076
	269	322	109	121
	83		125		28		27
2	5,981		6,609		1,993		2,224
	4		-	2		-
	(1,130)	(1,156)	(384)	(396)
	(264)	(323)	(101)	(117)
	(1,856)	(2,047)	(577)	(676)
	(1,191)	(1,214)	(388)	(405)
	(257)	(295)	(82)	(93)
6	(790)	(99)	(789)	(90)
	(16)	(28)	(4)	(13)
	-	1		-		-
	481		1,448		(330)		434
	(570)	(664)	(178)	(248)
	49	61	14	24
	101	15		-		-
	(13)		(32)		5		(23)
	48		828		(489)		187
3	(258)	(364)	(111)	(102)
	(210)		464		(600)		85
	(216)	428	(576)	89
	6		36		(24)		(4)
	(210)	464	(600)	85

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, 2020

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	2020			2019		2020			2019
Profit / (loss) for the period		(210)			464	(600)			85
Items that may be reclassified to profit or loss
Foreign currency translation	1	(707)			(8)	(219)			(26)
Other		8			3	6			3
Items reclassified to profit or loss
Other		(13)			-	(8)			-
Other comprehensive income / (loss), net of tax
	(712)			(5)	(221)			(23)
Total comprehensive income / (loss), net of tax
	(922)			459	(821)			62
Attributable to:
The owners of the parent		(848)			491	(793)			82
Non-controlling interests		(74)			(32)		(28)			(20)
		(922)			459	(821)			62

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, 2020