GENERAL INFORMATION

6 Months Ended

Jun. 30, 2026

Kyivstar Group Ltd. (the "Company" and collectively with its subsidiaries referred to as "Kyivstar Group" or the "Group"), an

exempted company limited by shares, was incorporated under the laws of Bermuda with registration number 202504557, in

Bermuda on March 7, 2025. The registered office of the Company is Victoria Place, 31 Victoria Street, Hamilton, HM10,

Bermuda. The principal place of business is located at Index Towers (East Tower), Unit 517, Level 5 Dubai (DIFC), United Arab

Emirates.

The Company was formed for the purpose of becoming the ultimate parent company of Kyivstar Group. On August 14, 2025, the

Company consummated a Business Combination transaction with Cohen Circle Acquisition Corp. (“Cohen Circle”) and VEON

Amsterdam B.V., pursuant to which VEON Amsterdam B.V. contributed its shares in Kyivstar Holdings B.V. to the Company in

exchange for the Company’s shares, and the shareholders of Cohen Circle contributed the net assets of Cohen Circle in

exchange for the Company’s shares. As a result of these transactions, Kyivstar Holdings B.V. became a wholly owned subsidiary

of the Company and the Company became the ultimate parent of Kyivstar Group. The transaction represented a capital

reorganization and establishment of a new holding company structure and did not result in changes to the underlying operations

of the Group.

The Company’s Common Shares and Warrants are listed on the Nasdaq Stock Market under the symbols "KYIV" and "KYIVW,"

respectively.

Kyivstar Group’s operations include the operations of the following entities (i) Kyivstar Group Ltd., (ii) Kyivstar Holdings B.V.

("Kyivstar Holdings") and (iii) JSC Kyivstar and its subsidiaries ("Kyivstar").

The main operating company in Kyivstar Group is Kyivstar. Kyivstar was established and registered on September 3, 1997 under

the laws of Ukraine. JSC Kyivstar’s registered legal address is at 53 Degtyarivska St. Kyiv 03113 Ukraine. JSC Kyivstar’s head

office is located at the registered legal address and the principal place of JSC Kyivstar's business is its registered legal address.

JSC Kyivstar has a main office in Kyiv, Ukraine.

Kyivstar provides mobile connectivity services on 2G, 3G and 4G/LTE networks, complemented by Starlink Direct to Cell satellite

connectivity services. The Company is also conducting pilot deployment of 5G technology. Kyivstar also offers voice and data

services on fixed networks, including mobile and fixed converged services in consumer and business segments. Its digital

portfolio includes Kyivstar TV, offered on IPTV platforms as well as mobile, big data and technology services through

Kyivstar.Tech, digital health services through Helsi and Tabletki, ride-hailing and delivery through Uklon, self-care application

MyKyivstar and consumer cloud offerings as well as B2B services. Kyivstar also owns and operates a portfolio of renewable

energy generation assets, including solar power plants, which support the Company’s energy strategy through electricity

generation and sales to Ukraine’s unified energy system.

BASIS OF PRESENTATION

These interim condensed consolidated financial statements have been prepared in accordance with International Accounting

Standards (“IAS”) 34 Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board, effective

at the time of preparing the interim condensed consolidated financial statements.

The unaudited interim condensed consolidated financial statements do not include all the information and disclosures required in

the annual consolidated financial statements and should be read in conjunction with the Group’s audited annual consolidated

financial statements as of and for the year ended December 31, 2025 as included in the Annual Report on the Form 20-F filed on

March 16, 2026.

The accounting policies applied are consistent with those applied in the preparation of the annual financial statements for the

year ended December 31, 2025, except for any new standards and interpretations adopted as of January 1, 2026.

These unaudited interim condensed consolidated financial statements have been prepared on a historical basis, except for

certain financial instruments and other items that are measured at fair value, as disclosed in the relevant accounting policies. The

interim condensed consolidated income statement has been presented based on the nature of the expense, other than ‘Selling,

general and administrative expenses’, which has been presented based on the function of the expense. Additional information on

the nature of expenses is provided where relevant in the notes to the interim condensed consolidated financial statements.

Certain amounts reported in the interim condensed consolidated income statement, statement of financial position and cash

flows have been reclassified in order to conform to the current period presentation.

The interim condensed consolidated financial statements have been prepared on a going concern basis. Due to the ongoing war

between Russia and Ukraine, material uncertainties affecting the Group’s ability to continue as a going concern are discussed in

detail at the end of this note.

The comparative information for the period ended June 30, 2025 does not represent the interim condensed consolidated

financial statements of the Company as a legal parent. Instead, it has been prepared on a combined (predecessor) basis and

reflects the financial information for Kyivstar Holdings B.V. (formerly VEON Holdings B.V.) and its subsidiaries. Accordingly, such

information may not be fully comparable to the Group's interim condensed consolidated financial statements for the current

period and does not necessarily reflect the results of operations, financial position or cash flows that would have been presented

had the current group structure been in place.

The functional currency of Kyivstar is Ukrainian Hryvnia ("UAH"), the currency of the primary economic environment in which

Kyivstar operates. The interim condensed consolidated financial statements are presented in United States dollars ("U.S. dollar"

or "US$"). In these Notes, U.S. dollar amounts are presented in millions, except for share amounts and as otherwise indicated.

FOREIGN CURRENCY TRANSLATION

For the purpose of these interim condensed consolidated financial statements, the assets and liabilities measured in the

functional currency are translated into U.S. dollars at exchange rates prevailing on the balance sheet date, whereas income and

expenses are generally translated into U.S. dollars at historical monthly average exchange rates. Foreign currency translation

adjustments resulting from the process of translating financial statements into U.S. dollars are reported in other comprehensive

income and accumulated within a separate component of Equity.

BASIS OF CONSOLIDATION

The interim condensed consolidated financial statements comprise the financial statements of the Company and its subsidiaries.

Subsidiaries are all entities (including structured entities) over which the Company has control. Interests held by Kyivstar Group

in its principal subsidiaries as of June 30:


	2026		2025
Name	Interest	Country of operation	Interest	Country of operation

JSC Kyivstar	99.995%	Ukraine	99.995%	Ukraine
LLC Kyivstar.Tech	100.00%	Ukraine	100.00%	Ukraine
LLC Helsi Ukraine *	97.99%	Ukraine	97.99%	Ukraine
LLC Lan Trace****	100.00%	Ukraine	100.00%	Ukraine
LLC Uklon Corporate *	97.00%	Ukraine	97.00%	Ukraine
LLC Uklon Tech *	97.00%	Ukraine	97.00%	Ukraine
LLC Uklon Ltd *	97.00%	Cyprus	97.00%	Cyprus
Uklon LLC (100.00% subsidiary of LLC Uklon Ltd)	100.00%	Uzbekistan	100.00%	Uzbekistan
Kyivstar Holdings B.V.***	100.00%	Netherlands	100.00%	Netherlands
Kyivstar Cayman Corp.**	—	—	100.00%	Cayman Islands
SUNVIN 11 LLC	100.00%	Ukraine	100.00%	Ukraine
LLC ISP Shtorm	100.00%	Ukraine	—	—
LLC MTPK	100.00%	Ukraine	—	—
LLC Farmel (100.00% subsidiary of LLC MTPK)	100.00%	Ukraine	—	—
LLC Farma Studio (100.00% subsidiary of LLC MTPK)	100.00%	Ukraine	—	—
LLC Energy Space	100.00%	Ukraine	—	—
LLC Ternovytsia Solar Plus	100.00%	Ukraine	—	—
LLC Energopostach-Plus	100.00%	Ukraine	—	—
LLC Lightfull	100.00%	Ukraine	—	—
LLC Sunlight Generation	100.00%	Ukraine	—	—
LLC Ternovytsia Solar	100.00%	Ukraine	—	—

*In each of these subsidiaries, a symmetrical put and call option agreement for the remaining ownership interest exists. As a result, on each

respective acquisition date, the Company determined that it had a present ownership interest in the remaining ownership percentage and has

consolidated these subsidiaries fully at 100%.

**The entity was liquidated on January 28, 2026.

***Name of VEON Holdings B.V. has been changed to Kyivstar Holdings B.V., effective February 10, 2026.

****The merger of LLC “Lan Trace” into JSC Kyivstar was registered on July 3, 2026. As a result, LLC “Lan Trace” is in the process of liquidation

through merger.

On February 10, 2026, JSC Kyivstar entered into a share purchase agreement to acquire 100% of the equity interests of LLC

MTPK and its subsidiaries, LLC Farmel and LLC Farma Studio (together, the “Tabletki Group”), a Ukrainian business providing

an online platform for searching and booking medicines and other pharmacy products. The transaction closed on February 10,

2026 for a purchase consideration of US$161.

On February 26, 2026, the Group acquired 100% of the equity interests of ISP Shtorm LLC, a regional fixed broadband operator

providing internet services to residential and business customers in Ukraine for a purchase consideration of US$10.

On May 26, 2026, the Group completed the acquisition of 100% of the equity interests of Energopostach-Plus LLC, Lightfull LLC,

Sunlight Generation LLC, Ternovytsia Solar LLC, Energy Space LLC and Ternovytsia Solar Plus LLC (together, the “six solar

power plants”), which own and operate six solar power plants located in the Lviv region of Ukraine with a combined installed

generation capacity of 105 megawatts ("MW"), for a purchase consideration of US$70 million.

Refer to "major developments during six-month period ended June 30, 2026" for more details.

In the interim condensed consolidated financial statements subsidiary undertakings – which are those companies in which the

Group directly or indirectly, has an interest of more than half of the voting rights or otherwise has power to exercise control over

the operations – have been fully consolidated.

Intercompany transactions, balances and unrealized gains or losses on transactions between Kyivstar Group companies are

eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with Kyivstar Group’s accounting

policies.

GOING CONCERN

As of July 31, 2026, the war in Ukraine is ongoing, millions of people have fled Ukraine, and the country has sustained significant

damage to infrastructure and assets. Currently, we have 21.8 million subscribers in Ukraine, where they are supported by

approximately 5,667 employees. Kyivstar Group’s priority is to protect the safety and well-being of our employees and their

families. We have developed and, in some cases, implemented additional contingency plans to relocate work and/or personnel

who are integral to the provision of essential communication services to other geographies and add new locations, as

appropriate. As of July 31, 2026, most of our Ukraine subsidiary’s employees remain in the country.

The war has resulted in events and conditions that may cast significant doubt on the Company’s ability to continue as a going

concern:

•The Company may need to record future impairment charges in Ukraine, which could be material, if the war continues

or escalates and/or due to macroeconomic conditions.

•As of July 31, 2026, the Company continues to conclude that neither VEON Ltd. nor any of its subsidiaries is targeted

by sanctions imposed by any of the United States, European Union (and individual EU member states) and the United

Kingdom. However, the interpretation and enforcement of these sanctions and counter-sanctions may result in

unanticipated outcomes and could give rise to material uncertainties, which could complicate our business decisions.

For example, to protect U.S. foreign policy and national security interests, the U.S. government has broad discretion to

at times impose a broad range of extraterritorial “secondary” sanctions under which non-U.S. persons carrying out

certain activities may be penalized or designated as sanctioned parties, even if the activities have no ties, contact with,

or nexus to the United States or the U.S. financial system at all. These secondary sanctions could be imposed on the

Company or any of the Company’s subsidiaries if they were to engage in activity that the U.S. government determined

was undertaken knowingly and rose to the level of material or significant support to, for, or on behalf of certain

sanctioned parties.

•Ukraine has also implemented and may implement further sanctions or measures on individuals or entities with close

ties to Russia, which may negatively impact Kyivstar, if VEON is considered by local Ukrainian authorities as being a

company controlled by sanctioned persons. In October 2023, VEON received notification from local custodian that the

following percentages of the corporate rights in our Ukrainian subsidiaries have been frozen: (i) 47.85% of Kyivstar, (ii)

100% of Ukraine Tower Company ("UTC"), a related party to the Company, (iii) 100% of Kyivstar.Tech, and (iv) 69.99%

of Helsi Ukraine. On November 29, 2024, the Shevchenkivskyi District Court of Kyiv ruled in favor of a request to

unfreeze 47.85% of VEON’s corporate rights in Kyivstar and 100% of VEON’s corporate rights in its other Ukrainian

subsidiaries. The decision fully removes the restrictions on VEON’s corporate rights imposed by Ukrainian courts on its

wholly owned Kyivstar and other Ukrainian subsidiaries. We are continuing to work with our local custodian to remove

any remaining restrictions in respect of corporate rights.

Management has taken actions to address the events and conditions that may cast significant doubt on the Company’s ability to

continue as a going concern:

•The Company has implemented business continuity plans to address known contingency scenarios to ensure that we

have adequate processes and practices in place to protect the safety of our people and to handle potential impacts to

our operations in Ukraine.

•The Company actively engages with stakeholders, including suppliers, customers, and regulatory authorities, to

proactively address potential disruptions. Diversification of supply chains and markets to reduce dependency on regions

affected by the war is implemented where possible. Management also continues to review and update risk management

policies to enhance resilience against the volatility stemming from the war.

•The Company continues to fund its operations for the next twelve months primarily through a combination of existing

liquidity and anticipated proceeds from its customers, including its wholesale business outside Ukraine. As of June 30,

2026, the Company holds US$364 in cash and cash equivalents and US$91 of other liquid financial assets, providing a

total available funding of approximately US$455, which significantly exceeds the Company’s projected operating

expenditures for the next twelve months. The Company has no material unrelated party debts and therefore no

unrelated party debt covenants. The resilience of the Company and its ability to generate strong cash flows has been

proven through the full-scale war since 2022.

•Management is actively monitoring any new developments in applicable sanctions to ensure that we continue to be in

compliance and to evaluate any potential impact on the Company’s financial performance, operations, and governance.

Management has actively engaged with sanctions authorities where appropriate. Management is engaging with

authorities in Ukraine to address any concerns they have about the ownership and management of Kyivstar and to

provide all necessary assurances to confirm that sanctioned individuals, including any beneficial owners of LPE Middle

East Limited (formerly L1T VIP Holdings S.à r.l., "LetterOne"), do not participate in the management of Kyivstar.

•Matters relating to the VEON-related legal proceedings and restrictions on certain corporate rights remain ongoing.

There were no material developments during the six-month period ended June 30, 2026, or during the period June 30,

2026 through July 31, 2026.

•The Company’s Nasdaq listing, together with the completion of its secondary offering in February 2026, continues to

enhance the Group’s access to capital markets and broaden its investor base.

The accompanying unaudited interim condensed consolidated financial statements have been prepared on a going concern

basis. In accordance with IAS 1, Presentation of Financial Statements, the Company has determined that the aforementioned

conditions and events, considered in the aggregate, may cast substantial doubt about the Company’s ability to continue as a

going concern for at least 12 months after the date these interim condensed consolidated financial statements were authorized

for issuance. Management expects the actions it has taken or will take will mitigate the risk associated with the identified events

and conditions. However, given the uncertainty and exogenous nature of the ongoing war and potential future imposed sanctions

as well as potential new counter-sanctions, management concluded that a material uncertainty remains related to events or

conditions that may cast significant doubt on the Company’s ability to continue as a going concern, such that it may be unable to

realize its assets and discharge its liabilities in the normal course of business. As a U.S. SEC registrant, the Company is required

to have its financial statements audited in accordance with Public Company Accounting Oversight Board ("PCAOB") standards.

References in these IFRS financial statements to matters that may cast significant doubt about the Company’s ability to continue

as a going concern also raise substantial doubt as contemplated by the PCAOB standards.

Major developments during the six-month period ended June 30, 2026

Acquisition of ISP Shtorm LLC

On February 9, 2026, the Group entered into a Share Purchase Agreement for the acquisition of 100% of the equity interests in

ISP Shtorm LLC for total consideration of US$10. ISP Shtorm LLC is a regional fixed broadband operator providing internet

services to residential and business customers in Ukraine. The transaction closed on February 26, 2026 and has been

accounted for under IFRS 3 Business Combinations. For further details refer to Note 5.

Acquisition of Tabletki.ua

On February 10, 2026, the Group announced the acquisition of 100% of the equity interests in Tabletki.ua for total consideration

of US$161, payable in full in UAH in Ukraine. Tabletki.ua is one of Ukraine’s most widely used digital platforms for finding,

comparing and reserving medicines and other products available at Ukrainian pharmacies. The transaction closed on February

10, 2026 and was accounted for under IFRS 3 Business Combinations. For further details refer to Note 5.

Acquisition of six solar power plants

On May 26, 2026, the Group completed the acquisition of 100% of the equity interests in the six solar power plants, comprising

Energopostach-Plus LLC, Lightfull LLC, Sunlight Generation LLC, Ternovytsia Solar LLC, Energy Space LLC and Ternovytsia

Solar Plus LLC for total consideration of US$70. The acquired entities own and operate six solar power plants located in the Lviv

region of Ukraine with a combined installed generation capacity of 105 MW. The transaction has been accounted for under IFRS

3 Business Combinations. For further details refer to Note 5.

Appointment of Chief Financial Officer

On May 28, 2026, Kyivstar Group announced the appointment of Taner Kızıltoprak as Chief Financial Officer, effective July 1,

2026. Mr. Kızıltoprak joined the Group on June 1, 2026, as an advisor to the President to support the leadership transition prior

to assuming the role of Chief Financial Officer. Mr. Boris Dolgushin continued to serve as Chief Financial Officer through June 30,

2026, after which he transitioned to the role of advisor to the President, focusing on strategic projects. The appointment forms

part of the Group’s executive leadership succession and did not have an impact on the Group’s condensed consolidated interim

financial statements.

Major developments during the six-month period ended June 30, 2025

Kyivstar Expands Digital Portfolio with Acquisition of Uklon, Ukraine’s Top Ride-Hailing Business

On March 19, 2025 JSC Kyivstar signed an agreement to acquire 97% of Uklon Group (“Uklon”), a leading Ukrainian ride-hailing

and delivery platform for a purchase consideration of US$158. JSC Kyivstar also entered into a symmetrical put and call option

agreement for the remaining 3% interest in Uklon, which may be exercised within three years of closing. The transaction closed

on April 2, 2025.

VEON completes first phase of Share Buyback Program

On January 27, 2025, the US$30 first phase of VEON Ltd.'s share buyback program (as carried out by Kyivstar Holdings B.V.)

was completed, resulting in an additional purchase of US$22 of VEON Ltd. shares. Subsequently, during the three-month period

ended March 31, 2025, all the shares purchased were transferred to VEON Amsterdam B.V. (refer to Note 8).

VEON completes reorganization of VEON Holdings B.V.

On April 8, 2025, VEON announced that it had successfully completed the reorganization of VEON Holdings B.V. (now Kyivstar

Holdings B.V.). These steps pave the way for the proposed business combination with Cohen Circle, which is expected to lead to

the common shares and warrants of Kyivstar Group, being listed on Nasdaq.

Bond repayments

Kyivstar Holdings B.V. repaid all of its 4.0% April 2025 U.S. Dollar denominated Notes (US$472) and 6.3% June 2025 Russian

Ruble denominated Notes (US$100 (RUB7,840)), on April 9, 2025 and June 18, 2025, respectively.

Kyivstar increases ownership stake in Helsi

In May 2025, Kyivstar and LLC “UKRAINIAN INVESTMENT PLATFORM”, representing 26.9%ownership together with other

minority stakeholders representing 1.1% ownership in Helsi, negotiated an agreement to buy out the ownership stake of these

parties for US$11. Simultaneously the parties also terminated the existing put and call option agreements to the extent

representing the stake of these parties, resulting in partial derecognition of the put option liability. At the same time Kyivstar

agreed to terms with the remaining 2.01% shareholders based on the terms of the originally entered put and call option

agreement.