VEON (VEON) 28 Feb 222021 Q4 Earnings call transcript

Welcome to the VEON's Fourth Quarter Results presentation for the period ending December 31, 2021. I'm Nik Kershaw, VEON's Group Director of Investor Relations. I'm pleased to join in the room today by Kaan Terzioglu, our Group CEO; as well as Serkan Okandan, our group CFO and Alex Bolis, Head of Corporate Strategy. Today's presentation will begin with an operational overview from Kaan, followed by the financial review from Serkan. Then Kaan will come back.

presentation. ensure we is save would the of will your time these we end but questions ask the always, that ample there for for As that you

remind it's Before from anticipated you statements getting development targets performance today's involve public cause the me market statements the and and may uncertainties. on financial from annual forward-looking which of risks developments commercial presentation release let in transactions. that, measures ability the earnings report would and to the the to relate started, like and in today filings company during includes that non-IFRS network XX-F our may can part network make with presented the The I future we and forward-looking actual presentation, company's future differ investments and be downloaded guidance, initiatives, statements, These certain other on Kaan. to operational and the to strategic hand made operational reconciliations realize and and With and of company's each SEC. including over website. the results and Form materially trends, current which by recent factors those Certain company's risks to including detailed in

to Thank the presentation you, and welcome and results morning Nik. XXXX. for of full Good to all our year fourth quarter

our escalation reviewing sad me service our for It our few our affected are nine Ukraine, the say point to this, deeply that heartbreaking is a and disturbed. is position is allow continuity priority on US$X.X conflict. their by at saddening are current lines. efforts see to our situation. security With top is families. our need start the like performance, more ensure with profound This between by to of a two prayers off teams countries essential conflict size to is ever such recent and it time we Russia would with our committed on minds, of to company making probably top thoughts Before all markets by important and the say of even than same the everyone a billion undrawn these I very employees two a extreme time, of US$X.X words and their safety as bank and that the in At further situations. a of of billion is currently cash communication and supported out

to and continue at will position financial We the all an liquidity ensure requirements. operational to ample cover all times

by our a and control at up Group by review currency, intensity Let This within CapEx VEON X% grew values. has points points effective lower was key pricing basis, percentage disciplined us closing prior market -- our now reported markets revenue on performance good been supported cost and was local in our our X.X% up XXXX. X.X% across currency, high closed guidance. up a on revenues X.X%, indicators. focus range EBITDA XX.X local EBITDA above currency X.X guidance minimum year-on-year supported In strong and were an key above than value our and year. our [indiscernible]. and inflationary XX.X% percentage year single-digit for and

line delivered reported this percentage local we quarters performance, corresponds revenue In growth currency, points. X.X XX.X quarterly growth, currency double-digit revenues for XX.X% of for terms and closing at EBITDA to In performance XX.X% top QX now three [ph]. percentage and of in

positioning the us well year, performance our for improved medium throughout term. Importantly, the

services expansion strategy, enabled of investments by X. progress the on main digital to Moving have adjacent Slide XG and markets. driver of in in our digital these the The results been our operator

customers now months, base past XX serve our XG with reaching up We year XX%, services, of users a XG low penetration of customers. subscriber million two XX% by XX increased just ago. from out our XG the nearly Over one

XG of increased the two on past confidence have from track penetration penetration the medium mentioned XX% us XX% we we XG our as towards subscriber XX%. years, our term. that in Over are our This base gives to

Double We also local Our rate line with the across Slide with double-digit positive one XX% the In data Multiplay generated companies. and countries. XG EBITDA of nearly at increased month each XXXX, XX.X% XX% see operations. customers all million of subscriber In were of across revenues our growth year-on-year. line local looking active and with 'XX digital here combined our our XX.X this, currency trends solid encouraging a of terms. reach operations, QX customers from end in the growth revenues. at can all in performance of top currency in all performance you reported our results X; reported operating We markets summaries. the five these

was in Russia, growth driven in healthy progress. made revenue all country Most by 'XX. notably, group turnaround our Our each growth momentum reached countries good as a

service Scores, improving lower churn. talk the QX, in on of now XX%. XG Net more next means of rate trajectory consecutive total quarter. were RUBXX.X quarters slide. user quarter Beeline a of and is XG about of to me consecutive X% mobile revenue Promoter growth revenue users growth month mobile service year-over-year XX% December, base total quarters which growth of mobilized the Russia revenues this revenues growth for and X.X% end Beeline revenues is service upward of of Russia's growth the operational EBITDA In of [indiscernible]. the within ARPU our What account million of customers at this now and service In our three for and four growth X.X%. service revenue grew higher encouraging foundation -- is with year-on-year. in the This total growth X.X%, Russia, Let recorded up revenue The the X.X%, growth of

widening contributed BXB brand to services digital and this partnerships Our in strong growth renewal, performance. portfolio, have

player three a With in number consolidated our the we strong market. these results, as position

with Let's continue Ukraine.

the Kyivstar delivered few the quarter quarter We Over QX. no quarter XXXX of reported in was and X.X% in exception. revenues, growth after in past years, XX.X% growth final consistent EBITDA

like This up million Ukraine. performance a our supported in leadership, at since their has XG employees XG. in and XX.X% Jazz and penetration We XX.X%. [ph] For to years the the XX% and again strong of challenging growing year, recognized In best I as subscribers all over EBITDA XXXX. the corresponding our to million now for base. in to two added XX% growth X team thank across and strength grew highly been strong XG XG of you. added On to price our XX.X% Kyivstar subscribers. X.X our financial the these in customers. year-on-year activity would full EBITDA. convergent penetration and and past results XG consistent the profitability, has been revenues the exceptional enabled there has were increase services enabling is God nearly growth increased XX.X% employer very with we revenue reached of end network, Slide times. in in customers strategy XG to XXXX, be XX% sites look of our we XG by These has Pakistan. dedication infrastructure XX, X,XXX our by executing a

another are generation. services Our customer value engagement important contributor loyalty, and digital to

than JazzCash and in by an ARPU JazzCash XX.X to customers continued is million also higher ARPU than users, user JazzCash average XX% the use year-on-year. active monthly reached who up Jazz XXXX grow more service, of fintech of Our The XX%.

Tamasha over users XX% It's by year. watch Tamasha the application, X.X end on growth TV QX, the TV Jazz offering of in and time Xx the at end Tamasha's October time was total the was multi-active Jazz in reached In of TV entertainment video-on-demand of in Jazz building watch TV XXXX. of launched Our users million and users XXXX, services. total XXXX. streaming users

said Investor digital Day year, last the during we recent As December in opportunities. [indiscernible]

Next slide, Kazakhstan.

They to for unrest the see the the environment January, maintaining fair by recently glad predictable investors. in a commitment quick return chaired demonstrated Council, the Following held President were reliable, Tokayev, Investors' to in stability to and government's Foreign country. we

in Our the contribute QX. growth to can sustainable to work and vision direction Beeline to Kazakhstan of significantly in continued Kazakhstan industry this digital

in resources we responsibly and in XX.X% our the for the efficiently, at digital use while building people. network are on a this is XG areas. full devices important our we and services, with as network connected competitors livelihood cooperation is pace, our Together, expansion coverage sharing the settlements. With focus this combined connectivity and progress including can revenues the strong steady that of that up Our Kazakhstan. mobile carbon remote XXX a infrastructure for What footprint Kazakhstan, bridging and XX.X% fixed services year. improving in more particularly of XXX,XXX continues than were digital communities our QX reducing The across being the We top to rural more connected digital level support on on industry.

XXXX. our now customer XG We reached growth of penetration our year-on-year XX% base a in with for rate have of subscribers XX%

is slide. functions. by on brand, of gamification more Our year-on-year on application through It Izi, on-demand multi-platform digital-only users, offerings nearly reached gaining active with BeeTV proposing XX% XXX,XXX next supporting XX% into average video has streaming, entertainment Bangladesh choice the for higher is subscriber. services. and the local second evolving a than roaming market last unprecedented and up traction a ARPU music monthly than

revenues was accelerating revenue and data, the recorded up grew in While growth base quarter; it's a it's subscriber XG XX%. year-on-year XX% and X.X% by of to data shift Banglalink XG by

monthly is our million users, an Bangladesh. of non-Banglalink a high how Our of top terms entertainment XX% service engagement are has working clear users Toffee, in which X.X year-on-year, of increase maintaining active strategy in while [indiscernible]. of makes platform, probably now digital X.Xx example all-access levels subscribers

dynamics, growth the the believe company. of Given population in supportive this and macroeconomy strongly digital we

intend [ph] share XX% XG of spectrum growth to XX it's to level, about from of our market mid-XXs. share moving from we of As which XX% coverage is XX% to will fair to This our our our in part to full population increase current the plan, operating. enable XXXX/'XX

reported from growth impact double-digit a In to markets COVID turn Uzbekistan of bounced of back QX, growth, X.X% Kyrgyzstan here double-digit this are XX.X%. with quarter rate performance. of which QX, strongly XX. Georgia other in it's grew growth other solid The Slide growth in Georgia. consecutive very turnaround which XX.X% in heavy quarter their of third with let summarized revenue second country recorded operations Finally, growth it's me our remarkable. in joining year-on-year is on the

and to Georgia at Uzbekistan, our Our in successful of rates are countries. congratulate continued Multiplay users. XG and the turnaround higher teen appointed their I would in Kyrgyzstan all in teams positions growth Double base year-on-year and to even CEOs for high these their leadership who with in subscriber three XXXX to increase like

the underpins good me of let give On XX, stories we progressing the you according to digital you Algeria flavor operator strategy Slide our As exercise which the agreements. procedure is the far further success as progress stands, that remind on across business. shareholder

As revenue to revenue our these in and of greater the made Doubleplay of of XG of value XX% which Multiplay subscribers subscribers XXXX, upside XX% customers. In and XXXX. generated compares This QX, up end these capacity base. our of the engagement generation is consequence of customer XX%

Doubleplay of reflected ARPU X/X, voice also down users more Multiplay. users halts the use nearly a least a also and to the if grows XG one And Churn Doubleplay versus goes voice for Xx. of the are Xx slide. they Singleplay Multiple digital than XG they Singleplay ARPU at are Our in services, the rate generated about users. These our

and enablers more some strategy. products key a partnerships snapshot some of our digital a take now Let's XX is main products. digital into which operator are our our Slide of of of look digital granular

products presentation from This all applications customer versus of We of to to fintech markets. in expand many their bases The have respected an was allow XX% on on yourselves XX% in quarter. to ARPU and Pakistan, total these elsewhere details during me trends. a services in Russia, of generated Ukraine high-level provided last request the the uplift

markets ads of Ukraine, mature video Russia X.Xx uplift like total while and and in television the Pakistan in Tamasha users ARPU XX%, the and was For base. ARPU in more around Bangladesh Toffee users around digitally generate

XX% applications of is be that our be the as This the the XXXX to digital of will digital customer. of focus our to applications monthly to engagement. area ARPU. our Self-care grew contributes reaching active wide applications also an drive of our continue XX the million. usage of in year-on-year, engagement Self-care the applications up users our number Across Finally, A Self-care portfolio gateways group,

assets I Khairil team including these our strategy. high in are of over with call to As to these results the you to focus our in is high Abdullah and following be of to would potential the detail. leadership a focus outstanding more tomorrow, call team. our of today. products, several ventures build further like Serkan? now special will Toffee pillar as assets Welcome as and know, of financial the hand JazzCash joining value, discuss under Serkan our our Khairil and monetize to

afternoon more detail. In our morning financial elaborate good slides, will Thanks, results on and quarter the Karl. fourth Good year and in the to for participants. coming all full I

million. liabilities, profits group earnings Russia Let the but here are, assets coming 'XX. XXXX decreased which summarized accounting this us US$XXX me well key QX first on added almost were focus and after all sale We the Slide There increase year release debt to years. numbers for concluded always positions US$XXX in a for the in on strong and and tower has one-off set in out the items key been across the by significant year metrics the of net group in for year full these million financial some these net the as the in XX. our

The XXXX, on X.X% on For and They a fourth US$XXX accelerating through in higher we was in in reported XX.X% local year. in basis, profit by that loss EBITDA currency know full it. quarter, in currency and of group EBITDA a by terms year-over-year million basis. by X.X% move terms reported group versus versus a million as year local rose currency revenue local to net US$XXX increased note solid Full by net also the XXXX. X.X% a reported -- last year X.X%

saw to flat as the decline percentage revenue were to Our year-over-year. XX.X% points in continued ratio CapEx was intensity we CapEx increase. directionally What X.X

Finally, on flow year, for higher cash by equity million XX% the slide, free US$XXX this year-over-year. was

across growth. the increase supported with continued. This again, QX double-digit is performance particularly range our glowing usage. Slide increase looking in in to a now has in growth performance growth the strong encouraging mirror are this noteworthy detail from Kazakhstan, all momentum Russia services. and in Georgia delivering a digital XX. higher all revenue customer where seeing with Ukraine, performance Once our more XG Moving further Uzbekistan, at of and revenue positive strong and quarter was on by adoption we rates markets, Pakistan, Also The was demand data for

in X.X% our by seen best we year-over-year. significantly first than The higher noteworthy a QX We for had sets EBITDA After our EBITDA up year-over-year. recorded Russia. strong last reported out performance delivered quarterly normalizing particularly We XX.X% our and the Moving superb a of months, we performance a in in year-over-year. to currency turnaround in which the to Kazakhstan Slide and XX a in seen detail. quarter EBITDA and EBITDA after in greater for performance performances the quarters countries have particularly Uzbekistan. EBITDA of grant we was group growth turnaround operations our higher government radiofrequencies, XX five by in the six more related in years, for year in over the Russia, business has Also QX operating locally was weak EBITDA XX% on was by reported gain double-digit number

contribution Project more of would key remind be Project like will Over our the improvement details. our to XX, in the expected Slide EBITDA Optimum On Optimum. I from element term, To of again you we in ambition medium about achieve reiterate the XXXX. end years a to over around group reduction EBITDA improvement group three percentage rate here, run in point million margin the one cost US$XXX next by each which aim represents a year

the first year While full we Project be Optimum in initiated during 'XX, XXXX. will benefits

made in costs by corporate positive contribution overhead overhead XX% our success this further declined to corporate continued profitability year. group Our year-over-year. reducing also a HQ

on progressed XX XG the further CapEx. network Slide to during Moving investments group quarter.

impacted early US$X.X of year-over-year, XX% part Full of XX.X% to guided year. CapEx larger CapEx lower higher revenues. although our reported the was flat, deployment in CapEx we year largely the intensity this of as quarter within by largely saw the in the we XX% to While billion was was CapEx range declined

XX% for of we quarters, in As the just again spend previous saw quarter. over in investment focus accounting this of was Russia our the CapEx primary

capabilities throughout the strategic and our users remained grow services investments digital helped digital our a in key us and focus significantly. Continued to quarter

XX. group the note at group that like I US$X.X increased while net the year-end. debt Slide At billion US$X.X to to US$X.X stable on factor increased note was key here level, higher of would level net gross Turning billion. to debt was largely billion. to which cash debt these The quarter-on-quarter, to debt, excluding at decreased also now liabilities,

position Our committed of the undrawn cash billion and US$X.X credit strong the totaled liquidity and highlights group. facilities

is December of billion to dividend our concluded the Xx in than our X.Xx of in ratio internal at funding Our our was given years. We X.Xx level tenor average of us with to X.X which the RUBXX and policy. of line although keep comfort, limit funding leverage allowed higher

However, resulted a debt average year-over-year to rates interest our X.X%. XXX global trend basis in of in of cost rise point

on CapEx. reported free for equity the performance reflects payments. license Slide equity to free our year, Moving stable with This XX. year cash the throughout million together group The strong EBITDA flow US$XXX million and cash after US$XXX flow

we expect next CapEx to stable This should the versus years. brings look the declining coming free local see which guidance. summarizes to us Slide forward levels years, which support with our flow cash As performance generation over XX few we to EBITDA continued in

Kaan metrics. our with or guidance in all As were our line results already on covered, 'XX better has

Russia XX% after and the stage remains the does while group this full With not our unchanged. This flow exceed time group equity is ensuring year or license least our payments, same not leverage at policy regards at XXXX. to cash dividends, Looking ahead, X.Xx. free to Ukraine revenues, account for for the XX% context given now any at year are the we which current providing around around of guidance together

resources in quarters X.Xx debt 'XX, some and balance continue future. to at financial As reduction me your further strengthening to to we questions. end over the coming concentrate sheet focus remarks, and we turn to the before that, on our our of leverage the for dividend Xx for closing capacity ratio creating the on over hand With Kaan let to is floor

you, Thank Serkan.

focus and Let we Ukraine, to streamlining to of back scale building these on the personalizing growth and year targets units been optimizing digital XX me from value. XXXX in had and of cost and now and of executed related start capital verticals, portfolio reminder priorities that a points efficiencies you through has Kazakhstan rollout X one achievements. on double-digit structure, in what Russia at network business the to growth and XG every report give pleased the going Slide Pakistan the targeted creating tower our I'm

In terms like in questions. therefore, to business, we our to of to over XXXX. Serkan call the we thank potential. stage. for any execution I reason continuing ambiguities that, like largest our macro group two We of at three the of strong portion the will be every operational given operator of foundations business our confident the and you have the in the Operator? to attention the turn mentioned, look forward be and current would your in not our operations, this sharing capacity guidance With for

Hi, Alastair.

me? hear you Can

Yes, hear you I can well.

terms big on just just couple investing I'd do wondering on time, your a hear Obviously, the you have quarter? markets. how Russian your been Russian of interested lot balance then if then, with and if last dollar sort period, HQ And is question, sort just leverage the at cash sort your had to how could I against of general got if just at your your at with but in you How thoughts HQ. the paid check, give picture I the about you subsequent more -- nine of over you balance keeping dividend seen to for a wondering in there of of And I've dollar for you debt be currency up network final month sort a company capital accounts moment? obviously, and was dividend paid that indication the your I questions between capital you was moving a final of the can. -- as to hadn't strategy guess, you've allocation? how develop sheet. your the question, to so, in same environment. And in period challenges actually the I nine much in -- current an month of allocation much around

a suppliers get in, moment would equipment in Just pay and do if to your that very for equipment? do be that But you give you appreciate helpful. at can would the of Ukraine any key that you that, fluid comments around Russia context those sort terms I equipment? situation. I could who key of be the how vendors it's Any access How guess, and give you challenges? that. around Obviously,

situations. allocation investment applied. Alastair. of as we on the you, imagine, dynamics reasons methodology in have a investments did you we Thank macroeconomic business the of [indiscernible] making on reflecting the return why provide that, will the capital of based the potential current which be Having countries, can require of one us capital guidance. on It's Alastair, in our cost said obviously line it's well not that as the with change the as systematically progression will we the of to adjust

to the months. it I Serkan? next create cash would we mind disciplined high policy our cash couple of So of keep be to sure priority over of will that that control continue making balances, our and in like

and just allocation around as XX% on asked have you the -- relation capital XX%, seen the couple of leverage of XX%, in And is because in a presentation, things to is U.S. impact Ruble. you from XX% in dollar roughly -- XX% the leverage, regarding

positive debt the currencies, So of impact our Move will depreciation Ruble leverage will and lower because impact. be at U.S. a Ruble, will move our two. number question to amount that be any in in than dollars. a back case, local case this in That positively in

the the asked group. about position cash You of

in of U.S. is in roughly Europe of have XXX% or hard cash HQ -- U.S. and out US$X.X European We billion mainly currency, which the cash US$X.X almost cash and the is banks. in dollar billion all

vendors, is decided of get order that, maturity we And bond and future will big utilize cash repayment on our fund Yes, we all billion tomorrow. different have hopefully, that through key specific tomorrow each the HQ, country. we will reserves will bond again the payment can the are the we to needs. accessible fully leave on for US$X.X million place of accrued agreements negotiating of be are and for per and available the terms, favorable which loans, with have US$X.X million. US$XXX which top guess, -- intact In as as -- RCF the which we the -- is using a There get keep billion. to will that the amount RCF they course, in vendors to keep we for facility HQ due have facility But around plus committed supplies are US$XXX the regarding you payment we a at for terms. cash the which us to And our interest So tenors. to future

long-term partner country to first vendor, and we are country payment them with to our strategic our as effectively negotiating a I on discussing the to key terms it's with said, vendor vendors. vendors but As prolong to

second And state point [ph]. I a would

structure for especially current valuable, rates demonstrations in to group allocate capital markets enabler these a are and Being and major Our us debt allows is and a access raise to effectively capital us. [ph]. outside most

much. very Thanks

Cesar. Hi,

opportunity the about that. for a couple, the Hi, to sorry have I questions. and everyone. ask call Thanks Yes.

That's today from I equipment payments sourcing The or prevents making wanted one, Russia? Ukraine issue in if first the or just one. understand you to SWIFT

of percentage how in it Do country to they've rate? And does What last it have wanted And inflow the you cash the please percentage to is to Algeria option. to of back expect? most Russia? can And be the of just of Russian Third you put the there's significant to you fast any rates in the debt. would is your because update timing? which increased floating do question then short-term rate, magnitude held? us kind adjust question, on floating a if in been XX% cash guide get what I Second, on

ahead. Thank you, Cesar. Serkan go

Okay.

you have I Cesar, multiple think so, And questions.

If please miss Okay. anything, I know. me let

of equipment. functioning. payments question first think still us the before about the and my is I was and It on to start regarding potential sourcing just until SWIFT meeting, SWIFT knowledge is -- impact this

multiple actually, in we banks Ruble, -- are have So different the accounts multiple we U.S. bank banks in in those currencies. have and bank having Euro, dollar, accounts under banks multiple

we So in groups alternative of out and the cash have countries. to move

is Bank as Ukraine, Central by controls Ukraine. of the skeptic place imposed So you there in in know,

outflow Euro there out no have for dollar that So -- jurisdictions, is bank moment. only cash we as Ukraine. we different, currencies. at or in accounts have That's or said, U.S. different the different in of different But in have we I control the

I'm discussions in countries, of banks are regulation. we on changes so functioning. So relationship SWIFT -- in probably kind with Kaan can far, mitigate SWIFT it's our any from different how skipping But Algeria, we the comment will that.

Ruble, we and loans also Regarding debt, debt. have in Russia, bond. In bank Ruble in

bonds fixed are that in they are rates, so in the we know, you all fine. all Ruble, As

increased moment, loans, only -- are bank rate. including the But end at bond, banks. our interest combine by all [ph] the is you of the Russia majority bank the different, only free majority, the you rate at of date March none which rates for fixed of mixture today. a And the on floating the Central depending you a we basically, to of interest with the Russian be debt, we bank are XX% look Regarding fees there debt raised agreements banks. -- the floating, the is will have fixed of and debt debt. have different majority Effective debt -- mentioned, the And if Bank as the rates. if At

after going this at moment to start on I April, interest So Maybe without pause after kick the the more impact in QX. should detail. will into

with And accordance question, in procedures being all Serkan. with of connected shareholders our Algeria in performed both you, your by to parties Algeria put the our Cesar, exercise are regard agreement. Thank option to

speak, as As I well. questions. of we and the won't Algeria of further color that delays, couple is stage be back I go process to this actually and the a And with visiting the on progressing. able range next slight the We'll fact, is over weeks. it process [ph] be give matter everything will make considering of right to track sure as on-track at more the is the

is Cesar, that you me also Nik cash just HQ our where in cash? Europe. asked reminded is

And let I have care me upfront I can through around know say go lots many in sanctions what of of questions with this specific you area. so

shareholder monitoring jurisdictions no shareholders. that public highlight We which controlling sanctions continuously also company complying issued I with level, to regulations the various would order are like we with sure being the by them. a make are at And are VEON in to is

flow situation. is we is not coming from So these sanction this do issues of of But as well. expect fluid a any any

we be if and continuously about course, So we're keeping, the monitoring necessary, the public [ph]. informed will regiment of

Thank so you much.

next question from [ph]. Nicholas is The

afternoon. Hi, you questions. your for taking you thank today for time Thank good and

question sanction from one on the to Russia ability Just almost on that XX% quick of get Russia of Russia. out [ph] cash our coming because is imposed revenues obviously, your with are being

Nicolas, we in have Russia, in So we investment are -- been cycle. an already

the particularly Serkan, us. It from a not not is upstreaming for of please... priority has cash Russia but So been

is HQ there have Yes, upstreaming We Russia. intercompany assumed to is in planned no and plan plans no some in from year, our loans projected only between our for from that, Russia. there Apart this conversions. cash dividend upstreaming

Thank you. Okay.

The question [ph]. Lloyd Tammy is next from

I call. the a for okay. if Thanks there. have couple Hi, also that's

operations? and little that your Is these year? in the to earlier other get from an might with alluding of what be talk cash be you've And board? flow starting expect shareholder your announced ability is, the because are the thing And and just borrowing us, Russian sanctioned. a now out rest loans full an with the the than about you to LetterOne your owns remind with can Russia? second of banks which the Can what to cash about recently loans expectations flow don't are you from to less The on and owned comment to Russian that cash VEON is just you other for You bit keep happen following able that independent taken issue. XX% operations out

last question give I then with over start the me to and it Serkan. Let will

board independent [indiscernible] we in a place. don't summarized, we we an As have have have rightly

that's So basically…

me, can about cost how allow debt. you you give question light overall shed interest also of detail little to that, impact want If will bit Cesar's floating so that rates some on I our a

said, So Ruble. currently, is in have, I as we bonds

in So still will not the so sanctions, they are they be impacted from place.

amounting loans before depending rate to the you it's from around billion use, RUBXXX Russian three what US$X.X in have on billion, banks depreciation We currency. today's

we So out the these that sanctions banks two three VTB named. that Alfa-Bank. of from we of way can banks read are The today, I is and borrow cash just that as Sberbank,

sanctions have we amount is to Bank, For be year, be February end the loans March. And end. the as will refinancing probably, VTB which billion our probably RUBXX that VTB these VTB deadline most after in put which from year per should the of this Bank amounting within repaid before

RUBXXX So billion. that's

end RUBXX repaying March by will from of sanctions after most of be or and floating. will the the VTB exposure as So be per regulation, borrowing our billion two banks our it Russian

question. to want I to Cesar's link this However,

the debt in by cost debt rate billion this which will this Russia, interest of currently will only repay X.X%. group of revised end XX% debt, of is X.X% VTB RUBXX March, of our we cost increase cost after that to overall Assuming

to impacting one our answer immediate question. will which be roughly transition on the to will my the XX bps debt So the the -- for because rates. be a would be April interest will this from for That there be first new year impact us start gradual starting cost of

is Regarding within the itself flow I sufficient. second; cash as mentioned, Russia

dividends. as We are see any upstreaming for are cash don't operating. upstreaming Pakistan that we other countries from Russia and Russia, we Kazakhstan, in, Apart in any cash expecting not example, in issue from

question we happen for Ukraine. as at to Ukraine want I is have the US$X.X said cash HQ; need to cash what's at in wait the the we So But going and beginning, and our billion and keep mark as flow to this future. see only we

just And not Russia add, and we upstream we [indiscernible]. planning from maybe will to to were cash

Yes, that's correct.

Is that everything?

Yes. Thank you.

much. Thank you very

The Thanks. from question is next Ivan Kim.

on also five second and XX% delay that up upfront line plan, you And you to years? so is question where with Is this opportunity upstream wanted to cash go sure then spectrum. Or much or a I kind on My no you're on Can just time the it lastly, Thank over Hello. you another longer-term for for very there. this pay installments of year? then just just scheme Russia? into it's from 'XX follow concern XX% well? make as I going Pakistan dividends.

your do -- X.Xx? press on above in So release, it what's war right based the just have formulated the you you wouldn't the the now being on regardless way correctly going that leverage I based understand a paid on dividend and

be There the XX% and I Unlike then me end July the time, time. license very will with this continue. will as our last won't predictions. predictable. be in renewal, with process start is license by is and renewal And the actually, over surprises any we'll expected, years. Pakistan, paying line be Let plans this cash of And the this rest is

first I comment think question, too to early upstreaming. your is For 'XX it cash on

that I -- guidance. which is cannot one, So precise answer to

year your XXXX, For the is dividend, regarding correct. understanding the

and subject We are approval. going AGM pay to dividend to 'XX, not course, for board of

Can I question. have then [indiscernible] just another with

still do So given world plan or in the Pakistan macro Bangladesh on sales rates? tower towers, you higher any and

our intent So still value is we asset valid. believe crystallization

actually working and taking these Bangladesh, are terms Kazakhstan in into We Pakistan of the market. on assets

will and our be crystallizing but probably with of the project valid. intent delayering still in operations of monetizing our slower value is assets and telecom Ukraine We our

Thank you very much.

Cridge. Stella from comes question Next

Hi, if And presentation. follow-up there. mind. many don't thanks and on you side, questions Afternoon, the had for I two the financing everyone

Pakistan RCF be information you to the terms much would situation, on of over been to the give And to So how able expect year from in XXXX? The firstly, upstream a Pakistan Bangladesh? you've whether us able macro able earlier could draw available draw that's your confirm, about are due noticed just comment payment RCF can I was, the pay tomorrow. or planning to approvals question I bond you to on any make pretty tomorrow? to today you need on to to second that's that XXX% get that, confident more just specific past And perhaps you been the the bit upstream do in anything get to to you've from just and you

we upstreaming in because base. the not Bangladesh investment for we from are Bangladesh -- are moment dividend the

company our net is For distributing Pakistan, available. as profit dividend of XXX% there

problem in this during the as expect So we area haven't seen problem and in we Pakistan of any couple of well. upstreaming don't out years last cash any

in upstreaming, of Pakistan, Regarding drop probably available once the profit to mentioned, RCF for shareholders. dividend close net numbers down. amount I the the as of XXX% the we the

week. Of RCF we of and course, haven't we have initiated was that up issue the last drop confirm It request. I I And now. see can utilize any But faced only the we of course, to [indiscernible]. end down

about one about some ask say in to still shareholding comment shareholder I your possible market entities. appreciate no about there both being guess I it's earlier in if combined follow-up. color from the of obviously seen on able partners LetterOne. that level the weekend breakdown you potential on VEON? risk two could at the And to be the sanctions market the comments any give so shareholdings EU would the And there's beyond. the could perhaps But controlling concerns across We've over assess for LetterOne at us the I some more

of around topic. I think a be evolves, terms as in little this any we the situation speculations to patient making need really, bit

back see wait to permission will for your ask that and will I you. everything so be to we So we while a

much. very you Thank

The [ph]. is last from question Antonia Donici

me. hear two you questions. hope Hi, can have I I

you tomorrow. that drawing you Europe. also with? the that countries bond mention pay and which the mentioned behind that would which RCF banks Would you the which are cash You sharing -- have to are are banks And mind those in accounts holdings are you

answer but cannot meanwhile little overall. I bit Unfortunately, a I in questions neither try answer can to

we of multiple can banks, XX First in EU All say, I to are all countries the in are Europe, and X countries. in European some banks, of all, them around U.K. have

So without naming the banks.

again, globe. XX U.K. They funds. U.S., we Asia. XX RCF funds, from don't have the we but name Regarding RCF are and EU, have We again banks across

in account, banks and of potentially terms some on any them, of the that that are you banks of have under sanctions? Europe Russian subsidiaries the But just in local the are

For keeping Russian cash keeping, that we no bank. that -- our the we are is are cash there

Okay.

Thank great. Okay, you.

in I quarter. and Thank with want yourselves forward of we will you here to and looking the to thank you call all again talk you. today. next close you Thank very the much

everyone. Bye,