VimpelCom Transforms Into VEON (1); Introduces New Dividend Policy On The Back Of Improved Results And Robust Outlook

AMSTERDAM, Feb. 27, 2017

KEY RESULTS AND DEVELOPMENTS

• Delivered on all 2016 financial targets and generated USD 588 million of underlying equity free cash flow², as the Company returned to growth and its transformation gained traction
• VimpelCom and CK Hutchison completed the Italy joint venture transaction
• Introducing a new dividend policy effective immediately, with a 2016 dividend of US 23 cents per share, including US 3.5 cents paid in December 2016 as an interim dividend and a final dividend of US 19.5 cents expected to be paid in April 2017
• VimpelCom to become VEON underscoring the ambition of its accelerated digital strategy with the launch of the VEON internet platform in all countries by the end of 2017, having successfully launched in Italy in Q4 2016
• Partnerships signed with STUDIO+, Deezer and Mastercard
• VEON plans a second listing on Euronext Amsterdam in Q2 2017 to broaden its European investor base on the back of an increasing free float

Q4 2016 RESULTS

• Reported revenue and EBITDA positively impacted by contribution from Warid while currencies within VimpelCom's footprint are strengthening versus the U.S. dollar
• Reported service revenue increased 3% YoY, organically³ stable, with strong results in Pakistan and Ukraine, offset by continued weakness in Algeria; strong organic performance in mobile data revenue of +27% YoY
• Reported EBITDA of USD 783 million; underlying⁴ EBITDA organically³ increased 1.2% with a margin of 38.6%
• Profit for the period attributable to VimpelCom shareholders of USD 1.6 billion, mainly driven by the gain on the closing of the Italy joint venture, partially offset by impairments, transformation costs and litigation provision

 FY 2017 TARGETS⁷

• Low single digit year-on-year organic growth for total revenue
• Low single digit year-on-year organic accretion for underlying EBITDA margin
• Underlying equity free cash flow² of USD 700-800 million in 2017 and more than USD 1 billion for 2018

VimpelCom Ltd. (NASDAQ: VIP), a leading global provider of telecommunications and digital services headquartered in Amsterdam and serving over 200 million customers, today announces financial and operating results for the quarter and year ended 31 December 2016.