Kyivstar Group Ltd.

Hello and welcome to Keevstar's 1Q26 results presentation. For those of you who have joined the Zoom webinar, if you would like to ask a question, you can use the raise hand button which can be found on the black bar at the bottom of your screen at any time to join the queue to ask a question and you will be called upon during the Q&A session. For those of you watching on the webcast, if you would like to submit a written question, please use the ask a question tab at the top right of your screen. These questions can also be sent in at any time during the presentation. As a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Cole Aikson, you may begin.

Thank you. Good afternoon and good morning. Thank you all for joining us to discuss Key Star Groups, or Key Stars, first quarter results. I am Cole Acheson, Group Director for Keystar Investor Relations. Joining me today are Khan Terzioglu, Chairman of the Board, Oleksandr Komarov, the CEO, Baris Dalgushin, our CFO, and Anand Ramachandran, Chief Corporate Development Officer for Vian. Oleksandr will begin with strategic and operational highlights, followed by Boris with a review of our financial performance. We will then open the line for questions. Before we begin, please note that today's presentation contains forward-looking statements which involve risks and uncertainties. Further details are available in our FCC filings, including our Form 20F, filed March 16, 2026. Our earnings release and presentation are available on our investor relations website. With that, I'll hand over to Oleksandr.

Thank you, Cole. Hello, everyone. We started 2026 with strong execution. Our telecom core is resilient. Our digital ecosystem is scaling. The two businesses fit each other. Let me start with the numbers. Revenue reached $323 million. This is an increase of nearly 27% year over year. EBITDA grew more than 23% to $173 million. We focus on cash generation. Equity-free cash flow grew almost 32% to $87 million for the quarter. Second, our digital transformation. Digital revenue more than tripled year on year, reaching almost 21% of our total revenue in first quarter 2026. This is an increase of more than 5 percentage points quarter on quarter and more than 13 percentage points from a year ago. Our platforms have scaled. We now serve more than 28 million non-unique digital customers, a number now larger than our mobile subscriber base. We also streamlined our report in this quarter, integrating identity services into our digital enterprise vertical to provide a clearer and more consistent view of performance. Identity services are undergoing a transition away from traditional A2B messaging to more varied API-based platforms, becoming more digital than traditional analog mobile. We also moved to reporting customers across service line on three months active basis to provide better comparability between lines and overtime. Accordingly, we provide reclassified numbers for past periods to ensure comparability and maximum visibility. Third, our Multiplay strategy. Multiplay customers use voice, data, and at least one of our apps. They generate more revenue individually and are less likely to churn. Multiplay customers grew 31.6% to 8.1 million. They now make up nearly 40% of our active mobile base. This engagement drives the top line. Mobile IRPU rose 14.1% year-on-year to $3.80. Finally, our strategic investments. In February, we consolidated Tabletki. Tabletki is Ukraine's leading online healthcare marketplace. It processed $258 million in gross merchandise value over the two months of consolidation for the quarter. We expanded our cooperation with SpaceX to resell Starlink Internet to enterprise customers. Over 5 million customers already use our direct-to-sell messaging services, and we will launch live data later this year. As for our first quarter financials, telecom revenue grew 8% to $256 million. Customers are moving to 4G and using more data. Digital revenue grew 257% to $67 million. The consolidations of Uklon and Tableta drove this surge. Our other digital products also grew organically. Starting from this quarter, we are splitting our EBDA disclosure to show digital separately from telco and infrastructure. This better clarifies the development of the respective verticals. Total EBDA rose more than 23% to $173 million. Our telecom and infrastructure core generated $144 million in EBDA, resulting in a 56% margin. Our digital platforms generated $29 million in EBDA, producing a nearly 43% margin. Net profit reached $85 million. Earnings per share was $0.37. We invested $67 million in capital expenditure. Our CapEx intensity was 20.9% for the quarter. We generated $161 million in operating cash flow. Equity free cash flow grew 32% to $87 million. Cash generation funds our growth. Our cash position remains strong at $353 million. Now, let's look at the mobile business where we serve 22 million customers. Our annualized churn rate was 16% for the quarter. We remain the country's clear market leader. Mobile IRPU grew 14% to $3.80. Customers are moving to 4G and using more data. Data consumption grew 31% to almost 15 gigabytes per user monthly. Nearly 70% of our mobile base is now on 4G. Our fixed broadband base grew almost 12% to move to the 1.2 million customers. This includes 52,000 new users from our recent Storm acquisition. Broadband and digital entertainment work closely together. Today, nearly 46% of our broadband users also subscribe to Kyivstar TV. Cross sales and synergies bring us back to the core of our digital growth strategy, Multiplay. Multiplay customers grew almost 32% year over year to 8.1 million. They now make up nearly 40% of our active mobile customer base. They also generate higher revenue. The average Multiplay customer generates $5.30 in a monthly IRPU. That is nearly 40% more than the average mobile customer. They spend more on our digital suite, but they also spend more on connectivity. Let's look closer to our digital revenue. Digital revenue grew by 2.6 times to $67 million. It now makes up almost 21% of total revenue. Three points about this performance. First, strategic acquisitions enhance our scale. The consolidations of Uklon and Tabletki drove the bulk of this quarter surge. That said, the growth is also broad-based. We see momentum across all verticals. Uklon, Health, Tabletki, Kyivstar TV, and the digital enterprise business. Third, we have a structural cost advantage. Our telecom customer base provides low acquisition costs. Our multi-plate bundles act as an optimized distribution model. This synergy allows us to scale platforms, profitability, and maintain strong unit economics. Moving to Uklon, our mobility platform. In the first quarter, Uklon generated nearly $33 million in revenue and more than $12 million in EBITDA. This reflects both a scaled business in Ukraine and a growing business in Uzbekistan. The platform protested nearly 44 million rides and 1.5 million deliveries, the latter reflecting an almost 10% rise quarter on quarter. Active customers rose to more than 5 million for the quarter. We are expanding the product range. Customers can now book intercity bus tickets directly in the new Uklon Travel. We continue to explore new ways to develop Uklon further as a comprehensive one-stop mobility platform. Our digital enterprise business is gaining scale with more than $16 million in revenue and 9% increase year over year. We manage 2.2 thousand active B2B contracts up 31% year on year. Big data and AI drove the majority of this quarter's growth. The segment's revenue grew 75% to $4.4 million. Cloud revenue grew 42% to $2.3 million. Advisor, our self-service advertising platform, primarily focused on small and medium-sized businesses, expanded to over 4,000 registered clients. The division also contains Kyiv Star Tech, which binds our ecosystem together and is responsible for some of our most cutting-edge work. An example is our work in cooperation with the Ukrainian government and leading international partners to produce our sovereign LLM, which is trained exclusively on Ukrainian language data to meet the unique needs of Ukrainian clients. Moving to entertainment, Kyiv Star TV remains the largest media streaming service in Ukraine. Revenue grew 390% year-over-year to $10.5 million. Last year's shift to gross revenue recognition is complemented by strong organic momentum spurred by two factors. First, customer expansion and engagement. customer base reached a new record at more than 3 million. As I mentioned earlier, more than 46% of our fixed broadband base now subscribes to our TV platform. Second, our original content continues to inspire engagement. New crime drama, Tyhanava, is the most watched title in the platform's history. Exclusive Ukrainian content attracts new customers and strengthens our ecosystem. We are looking forward to soon being exclusive Ukrainian broadcaster of an upcoming boxing match featuring world heavyweight champion and proud Ukrainian Oleksandr Usyk. On the healthcare, Healthy is Ukraine's leading health tech platform. We serve 4.9 million active digital customers in Q1. Patients booked 2.4 million appointments through the platform. We are scaling the platform paid services. Customer paying the premium offerings increased by more than half quarter on quarter to reach more than 87,000. Revenue grew nearly 32% year over year to more than $2 million. Healthy powers, appointment scheduling, prescriptions and health records, including integration with Ukraine's state health system. The platform makes care easier and faster to assess a win-win for patients and doctors alike. Customers are upgrading for a range of advanced health insights. Our healthy superpower telecom panel helps drive these conversions. Healthy highlights our commitment to corporate social responsibilities and ESG. We are expanding access to digital healthcare for Ukrainians during the wartime. Then we have Tabletki, the leading online healthcare marketplace. We consolidated this business in February. In just two months, the platform contributed more than $5 million in revenue and more than $4 million in EBITDA. Customer volume is strong. The platform facilitated 15.3 million average monthly bookings in the first two months of the year. For the same period, gross merchandise value reached $258 million. We continue work on integrating Tabletki with Healthy and ultimately with Uklon's delivery network. We expect these synergies to drive deeper engagement across our digital customer base. All these parts come together in our growth strategy. We intend our core connectivity business to maintain market leadership. We focus on retaining a high-quality customer base and driving technological innovation. For example, over 5 million customers use our direct-to-sale satellite messaging, and we expect to launch light data later this year. In fixed broadband, we aim to expand market share. We plan to drive this expansion through BOSS, organic growth, and targeted acquisitions. This market brings entire households into our ecosystem, mutually reinforcing the mobile and digital businesses. Third, our digital ecosystem. We anticipate scaling our digital platforms through organic momentum and strategic acquisitions. Our core strategy is to increase multiplayer adoption and deepen daily engagement across our customer base. We continue to progress our strategies through both organic and inorganic growth. Most recently, we announced the expansion of our cooperation with SpaceX to include selling high-speed internet services to Ukrainian businesses and public institutions, allowing us to provide B2C and B2C customers a full feature and connectivity stack within Kyivstar packages. Now, Boris will tell us more about the financials.