1. Digital Transformation of the Economy: Trends and Perspectives
TOMAS LAMANAUSKAS – Group Director Public Policy
September 2017

2. VEON: GLOBAL company with Local Relevance
235+ MLN
CUSTOMERS
RUSSIA
UZBEKISTAN
KYRGYZSTAN
BANGLADESH
PAKISTAN
KAZAKHSTAN
ARMENIA
UKRAINE
ITALY
ALGERIA
AMSTERDAM
TAJIKISTAN
GEORGIA
$8,9BLN
REVENUES
LONDON 13
MARKETS, HQ IN AMSTERDAM (+DIGITAL HUB IN LONDON)
LAOS
65%
3G COVERAGE | 2G: 94% | 4G*: 20%
* excl. Italy

3. VEON: telco & TECH
Local
Global +

4. TRENDS: DATA USE IS Exploding
Smartphone - typo
Mobile data traffic is expected to have increased sixfold by 2020
Source: Ericsson Mobility Report, 2016

5. TRENDS: Digital Investments ARE ACCELERATING
DIGITAL INVESTMENT AS PERCENTAGE OF GDP

6. TRENDS: Traditional Players under pressure
Network usage vs revenue generation
(in %)
Source: EY, 2015
Source: FT, 2015

7. TRENDS: Plethora of Digital Players are Emerging
Source: CB Insights

8. TRENDS: Sector is being Reshaped
Market Capitalisation Growth in last 5 Years (US$, Dividends Excluded)
+$225bn
+$286bn
+$202bn
+$155bn
+$32bn
+$18bn
-$9bn
-$42bn
Telco = -$1bn
Digital = +$868bn

9. TRENDS: As well as the Global Economy

10. TRENDS: From employment to partnerships
Largest employer in the world
Sources: Bloomberg, 2017

11. KEY ENABLERS: connectivity Brings growth
“A 10% INCREASE IN BROADBAND COULD RAISE ECONOMIC GROWTH BY BETWEEN 0.25% - 1.4%” (ITU, 2016)

12. KEY ENABLERS: data flows
Global data flows account for approximately 3 percent of global GDP
Data localization requirements could lead to a negative impact on GDP of 0,7-1,1%
Data localization requirements could lead to an increase of computing costs to SMEs 30-60%
Productivity declines significantly – in particular for communication services – with potentially 2.7% in Russia, 2.2% in China and 1.8% in the EU
Source: McKinsey, 2016

13. KEY ENABLERS: DIGITAL FINANCE
2 billion people remain unbanked globally, of which 410 million within our footprint (which is 58% of the population)
200 million MSMEs in emerging economies lack access to savings and credit
80-90% cost savings could be realized by service providers by shifting from traditional to digital accounts
Source: Global Findex, 2015; McKinsey, 2016

14. KEY ENABLERS: digital FinancE
Access to the global digital economy
Ability to transact, save, borrow, insure
$2,1 trillion of loans to individuals and businesses could be made sustainably
$110 billion could be gained by governments each year by reducing leakage in public spending and tax collection
95 million jobs could be created in emerging economies within a decade as a result of inclusive growth
Secure electronic account
Source: McKinsey, 2016

15. OUR APPROACH: ecosystem approach to ict4d
Policy/Regulatory Environment
ICT empowered individuals & communities
e-commerce
e-gov
e-education
e-health
e-agri
Digital Platforms
DFS/MFS
eID
Data
Connectivity

16. VEON Personal Internet PLATFORM

17. EMPHASIS oN local partners
80%
Global
20%

18. EMPOWERING VERTICAL INDUSTRIES
mAGRI
mGOV
within Vertical Sectors
Experts
Local Government and other industry led institutions
mHEALTH
mTRANSP
Technology
Partners
Content Providers
Third Party
mRETAIL
mEDUC

19. Our digital financial services
A CARD YOU CANNOT MISS
VEON CARD
USERS
REMITTANCE
AIR TIME CASH OUT + CREDIT
DCB
mPOS | QR
OFFLINE PAYMENTS
+48mln
Utilities, Games, Transport…
Sim 2 Any Sim
Card | ATM | Post
Appstore | PlayStore

20. SUCCEDING TOGETHER: EmPOWERING DIGITAL DEVELOPMENT
Algeria
Pakistan
In 2016, our Eurasia Mobile Challenge in Russia and the CIS was our most success­ful yet with over 1,000 entries
In 2016 we had 4,700 registrations in our digital entrepreneurship competitions
In 2016, 9,400 people attended our entrepreneurship educational events (classes and conferences)
We have incubators in 5 of our countries (Italy, Pakistan, Bangladesh, Algeria and Ukraine), in Bangladesh and Pakistan we worked together with the local governments to launch National Incubation Centers.
Eurasia
Italy

21. THANK YOU TOMAS LAMANAUSKAS
Group Director Public Policy
THANK YOU
Claude debussylaan md Amsterdam The Netherlands
Tel +31 (0)
Tax +31 (0)
twitter.com/veon
facebook.com/veon

22. VEON in uzbekistan UZBEKISTAN 42,8% 28,7 59,0% 9,5 1,250 WORLD 43,9%
Internet Usage
Mobile Broadband
(per 100 people)
Unbanked Adults
Customers
(in millions)
Employees
UZBEKISTAN
42,8%
28,7
59,0%
9,5
1,250
No MFS in Uzbekistan, only Airtime loan and Remittance receiving
3G and 4G coverage: 52,8% (3G) and 8% (4G) in Uzbekistan vs 84% (3G - ITU) and 23% (4G - GSMA) globally
WORLD
43,9%
49,4
38,5%
+235
51,300
Source: World Bank, 2016

23. Veon DFS offerings in eurasia 2017-2018

24. Utilities, Games, Transport…
Beeline is the first MNO in Kazakhstan to offer Financial Services in 2016 …
A CARD YOU CANNOT MISS
Beeline Card
Digital Payments
Remittance
Air Time Cash Out
Google DCB
1500+ merchants in 2017
Offline Payments
200+ X2
Utilities, Games, Transport…
Sim 2 Any Sim
Card | ATM | Post
CONCEPT WAS CREATED

25. QR Payments: 1,500 + locations in 2017
Scan
Pay Go

26. Example: mobile financial services in Ukraine by Kyivstar

27. E-government key priority globally

28. The e-government opportunity
Over 71% of governments globally aim to introduce or expand e-government services
Between 73 and 130 million people could potentially benefit from e-government services within our footprint
71%: own research for ITU (103 countries)
73 & 130mln: EU interaction gov (57%) and tax filing (22%) times population with smartphone in our markets.
1 in 3: BCG
Only 1 in 3 government services in Europe is tailored for use on a mobile device