ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which
registered
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American Depositary Shares, or ADSs,
each representing one common share
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VEON
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NASDAQ Global Select Market
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Common shares, US$0.001 nominal value
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NASDAQ Global Select Market*
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*
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Listed, not for trading or quotation purposes, but only in connection with the registration of ADSs pursuant to the requirements of the Securities and Exchange Commission.
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Large accelerated filer ý
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Accelerated filer o
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Non-accelerated filer o
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Emerging growth company o
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U.S. GAAP o
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International Financial Reporting Standards as issued by the
International Accounting Standards Board ý
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Other o
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•
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our ability to implement and execute our strategic priorities successfully and to achieve the expected benefits from, our existing and future transactions;
|
•
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our targets and strategic initiatives in the various countries in which we operate;
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•
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our ability to develop new revenue streams and achieve portfolio and asset optimizations, improve customer experience and optimize our capital structure;
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•
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our ability to generate sufficient cash flow to meet our debt service obligations, our expectations regarding working capital and the repayment of our debt and our projected capital requirements;
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•
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our plans regarding our dividend payments and policies, as well as our ability to receive dividends, distributions, loans, transfers or other payments or guarantees from our subsidiaries;
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•
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our expectations regarding our capital and operational expenditures in and after 2020;
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•
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our goals regarding value, experience and service for our customers, as well as our ability to retain and attract customers and to maintain and expand our market share positions;
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•
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our plans to develop, provide and expand our products and services, including operational and network development, optimization and investment, such as expectations regarding the expansion or roll-out and benefits of 3G, 4G/LTE and 5G networks or other networks, broadband services and integrated products and services, such as fixed-mobile convergence;
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•
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our expectations as to pricing for our products and services in the future, improving our ARPU and our future costs and operating results;
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•
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our ability to meet license requirements, to obtain, maintain, renew or extend licenses, frequency allocations and frequency channels and to obtain related regulatory approvals;
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•
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our plans regarding marketing and distribution of our products and services, including customer loyalty programs;
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•
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our expectations regarding our competitive strengths, customer demands, market trends and future developments in the industry and markets in which we operate;
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•
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our expectations regarding management changes; and
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•
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other statements regarding matters that are not historical facts.
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•
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risks relating to changes in political, economic and social conditions in each of the countries in which we operate and where laws are applicable to us (including as a result of armed conflict) such as any harm, reputational or otherwise, that may arise due to changing social norms, our business involvement in a particular jurisdiction or an otherwise unforeseen development in science or technology;
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•
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in each of the countries in which we operate and where laws are applicable to us, risks relating to legislation, regulation, taxation and currency, including costs of compliance, currency and exchange controls, currency fluctuations, and abrupt changes to laws, regulations, decrees and decisions governing the telecommunications industry and the taxation thereof, laws on foreign investment, anti-corruption and anti-terror laws, economic sanctions and their official interpretation by governmental and other regulatory bodies and courts;
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•
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risks related to the impact of export controls on our and important third-party suppliers’ ability to procure goods, software or technology necessary for the services we provide to our customers, particularly on the production and delivery of supplies, support services, software, and equipment that we source from these suppliers — for example, in April 2018, the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) issued an Export Administration Regulation (“EAR”) Denial Order to ZTE Corporation (“ZTE”) which prohibited, among other things, exports, re-exports and in-country transfers of goods, software and technology (collectively, “Items”), each of which could have led to service degradation and disruptions in certain markets, and in May and August 2019, BIS added Huawei Technologies Company Ltd. and 114 of its affiliates (collectively, “Huawei”) to its “Entity List”, prohibiting companies globally from directly or indirectly exporting, re-exporting or in-country transferring all Items subject to the EAR to Huawei and procuring Items from Huawei when they have reason to know that the Items were originally procured by Huawei in violation of U.S. law;
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•
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risks relating to a failure to meet expectations regarding various strategic initiatives, including, but not limited to, changes to our portfolio;
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•
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risks related to solvency and other cash flow issues, including our ability to raise the necessary additional capital and incur additional indebtedness, the ability of our subsidiaries to make dividend payments, our ability to develop additional sources of revenue and unforeseen disruptions in our revenue streams;
|
•
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risks that the adjudications by the various regulatory agencies or other parties with whom we are involved in legal challenges, tax disputes or appeals may not result in a final resolution in our favor or that we are unsuccessful in our defense of material litigation claims or are unable to settle such claims;
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•
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risks relating to our company and its operations in each of the countries in which we operate and where laws are applicable to us, including demand for and market acceptance of our products and services, regulatory uncertainty regarding our licenses, frequency allocations and numbering capacity, constraints on our spectrum capacity, availability of line capacity, intellectual property rights protection, labor issues, interconnection agreements, equipment failures and competitive product and pricing pressures;
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•
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risks related to developments from competition, unforeseen or otherwise, in each of the countries in which we operate and where laws are applicable to us, including our ability to keep pace with technological change and evolving industry standards;
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•
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risks related to the activities of our strategic shareholders, lenders, employees, joint venture partners, representatives, agents, suppliers, customers and other third parties;
|
•
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risks associated with our existing and future transactions, including with respect to realizing the expected synergies of closed transactions, satisfying closing conditions for new transactions, obtaining regulatory approvals and implementing remedies;
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•
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risks associated with data protection, cyber-attacks or systems and network disruptions, or the perception of such attacks or failures in each of the countries in which we operate, including the costs associated with such events and the reputational harm that could arise therefrom;
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•
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risks related to the ownership of our American Depositary Receipts, including those associated with VEON Ltd.’s status as a Bermuda company and a foreign private issuer; and
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•
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other risks and uncertainties as set forth in Item 3D. Risk Factors.
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|
Year ended December 31,
|
||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|||||
|
|
||||||||||||||
Service revenues
|
8,240
|
|
8,526
|
|
9,105
|
|
8,553
|
|
9,313
|
|
|||||
Sale of equipment and accessories
|
465
|
|
427
|
|
244
|
|
184
|
|
190
|
|
|||||
Other revenues / other income
|
158
|
|
133
|
|
125
|
|
148
|
|
103
|
|
|||||
Total operating revenues
|
8,863
|
|
9,086
|
|
9,474
|
|
8,885
|
|
9,606
|
|
|||||
|
|
|
|
|
|
||||||||||
Service costs
|
(1,554
|
)
|
(1,701
|
)
|
(1,879
|
)
|
(1,769
|
)
|
(1,937
|
)
|
|||||
Cost of equipment and accessories
|
(479
|
)
|
(415
|
)
|
(260
|
)
|
(216
|
)
|
(231
|
)
|
|||||
Selling, general and administrative expenses
|
(2,965
|
)
|
(3,697
|
)
|
(3,748
|
)
|
(3,668
|
)
|
(4,563
|
)
|
|||||
Other operating gain / (loss)
|
350
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Depreciation
|
(1,652
|
)
|
(1,339
|
)
|
(1,491
|
)
|
(1,439
|
)
|
(1,550
|
)
|
|||||
Amortization
|
(394
|
)
|
(495
|
)
|
(537
|
)
|
(497
|
)
|
(517
|
)
|
|||||
Impairment (loss) / reversal
|
(108
|
)
|
(858
|
)
|
(66
|
)
|
(192
|
)
|
(245
|
)
|
|||||
Gain / (loss) on disposal of non-current assets
|
(43
|
)
|
(57
|
)
|
(26
|
)
|
(20
|
)
|
(39
|
)
|
|||||
Gain / (loss) on disposal of subsidiaries
|
1
|
|
30
|
|
—
|
|
—
|
|
—
|
|
|||||
|
|
|
|
|
|
||||||||||
Operating profit
|
2,019
|
|
554
|
|
1,467
|
|
1,084
|
|
524
|
|
|||||
|
|
|
|
|
|
||||||||||
Finance costs
|
(892
|
)
|
(816
|
)
|
(935
|
)
|
(830
|
)
|
(829
|
)
|
|||||
Finance income
|
53
|
|
67
|
|
95
|
|
69
|
|
52
|
|
|||||
Other non-operating gain / (loss)
|
21
|
|
(68
|
)
|
(97
|
)
|
(82
|
)
|
(42
|
)
|
|||||
Share of profit / (loss) of joint ventures and associates
|
—
|
|
—
|
|
(22
|
)
|
(11
|
)
|
14
|
|
|||||
Impairment of joint ventures and associates
|
—
|
|
—
|
|
(110
|
)
|
(99
|
)
|
—
|
|
|||||
Net foreign exchange gain / (loss)
|
(20
|
)
|
15
|
|
(70
|
)
|
157
|
|
(314
|
)
|
|||||
Profit / (loss) before tax
|
1,181
|
|
(248
|
)
|
328
|
|
288
|
|
(595
|
)
|
|||||
|
|
|
|
|
|
||||||||||
Income tax expense
|
(498
|
)
|
(369
|
)
|
(472
|
)
|
(635
|
)
|
(220
|
)
|
|||||
Profit / (loss) from continuing operations
|
683
|
|
(617
|
)
|
(144
|
)
|
(347
|
)
|
(815
|
)
|
|||||
|
|
|
|
|
|
||||||||||
Profit / (loss) after tax from discontinued operations
|
—
|
|
(300
|
)
|
(390
|
)
|
979
|
|
262
|
|
|||||
Gain / (loss) on disposal of discontinued operations
|
—
|
|
1,279
|
|
—
|
|
1,788
|
|
—
|
|
|||||
Profit / (loss) for the period
|
683
|
|
362
|
|
(534
|
)
|
2,420
|
|
(553
|
)
|
|||||
|
|
|
|
|
|
||||||||||
Attributable to:
|
|
|
|
|
|
||||||||||
The owners of the parent (continuing operations)
|
621
|
|
(397
|
)
|
(115
|
)
|
(439
|
)
|
(917
|
)
|
|||||
The owners of the parent (discontinued operations)
|
—
|
|
979
|
|
(390
|
)
|
2,767
|
|
262
|
|
|||||
Non-controlling interest
|
62
|
|
(220
|
)
|
(29
|
)
|
92
|
|
102
|
|
|||||
|
683
|
|
362
|
|
(534
|
)
|
2,420
|
|
(553
|
)
|
|||||
|
|
|
|
|
|
||||||||||
Basic and diluted gain / (loss) per share attributable to ordinary equity holders of the parent:
|
|
|
|
|
|
||||||||||
From continuing operations
|
$
|
0.36
|
|
$
|
(0.23
|
)
|
$
|
(0.07
|
)
|
$
|
(0.25
|
)
|
$
|
(0.52
|
)
|
From discontinued operations
|
$
|
—
|
|
$
|
0.56
|
|
$
|
(0.22
|
)
|
$
|
1.58
|
|
$
|
(0.52
|
)
|
Total
|
$
|
0.36
|
|
$
|
0.33
|
|
$
|
(0.29
|
)
|
$
|
0.23
|
|
$
|
0.035
|
|
|
As of December 31,
|
|||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
|
(in millions of U.S. dollars)
|
|||||||||
Consolidated balance sheet data:
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
1,250
|
|
1,808
|
|
1,314
|
|
2,942
|
|
3,614
|
|
Working capital (deficit)(1)
|
(3,269
|
)
|
(1,316
|
)
|
(716
|
)
|
(2,007
|
)
|
(156
|
)
|
Property and equipment, net
|
7,340
|
|
4,932
|
|
6,237
|
|
6,719
|
|
6,239
|
|
Intangible assets and goodwill
|
5,688
|
|
5,670
|
|
6,786
|
|
6,953
|
|
6,447
|
|
Total assets
|
16,059
|
|
14,102
|
|
19,484
|
|
21,193
|
|
33,854
|
|
Total liabilities
|
13,839
|
|
11,323
|
|
15,594
|
|
15,150
|
|
29,960
|
|
Total equity
|
2,220
|
|
2,779
|
|
3,890
|
|
6,043
|
|
3,894
|
|
(1)
|
Working capital (deficit) is calculated as current assets less current liabilities and is equivalent to net current assets.
|
|
As of and for the year ended December 31,
|
|||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
Mobile customers in millions
|
|
|
|
|
|
|||||
Russia
|
54.6
|
|
55.3
|
|
58.2
|
|
58.3
|
|
59.8
|
|
Pakistan
|
60.5
|
|
56.2
|
|
53.6
|
|
51.6
|
|
36.2
|
|
Algeria
|
14.6
|
|
15.8
|
|
15
|
|
16.3
|
|
17
|
|
Bangladesh
|
33.6
|
|
32.3
|
|
31.3
|
|
30.4
|
|
32.3
|
|
Ukraine
|
26.2
|
|
26.4
|
|
26.5
|
|
26.1
|
|
25.4
|
|
Uzbekistan
|
8.1
|
|
9.1
|
|
9.7
|
|
9.5
|
|
9.9
|
|
Kazakhstan
|
10.2
|
|
9.9
|
|
9.8
|
|
9
|
|
9.5
|
|
|
|
|
|
|
|
|||||
Mobile data customers in millions
|
|
|
|
|
|
|||||
Russia
|
35.5
|
|
36.8
|
|
38.4
|
|
36.6
|
|
34.3
|
|
Pakistan
|
38.8
|
|
33
|
|
28.5
|
|
25.1
|
|
16.8
|
|
Algeria
|
8.8
|
|
9.2
|
|
7.2
|
|
7
|
|
4.1
|
|
Bangladesh
|
21.5
|
|
19.6
|
|
16.9
|
|
14.9
|
|
14
|
|
Ukraine
|
16.9
|
|
14.8
|
|
12.5
|
|
11.2
|
|
12
|
|
Uzbekistan
|
5.2
|
|
5.5
|
|
5
|
|
4.6
|
|
4.7
|
|
Kazakhstan
|
6.9
|
|
6.3
|
|
5.7
|
|
4.9
|
|
5
|
|
|
|
|
|
|
|
|||||
Mobile ARPU (in U.S. dollars)
|
|
|
|
|
|
|||||
Russia
|
5.3
|
|
5.4
|
|
5.5
|
|
4.6
|
|
5.1
|
|
Pakistan
|
1.7
|
|
2.1
|
|
2.2
|
|
2.3
|
|
2.1
|
|
Algeria
|
4.2
|
|
4.3
|
|
4.8
|
|
5.1
|
|
6
|
|
Bangladesh
|
1.3
|
|
1.3
|
|
1.5
|
|
1.6
|
|
1.6
|
|
Ukraine
|
2.6
|
|
2
|
|
1.8
|
|
1.7
|
|
1.8
|
|
Uzbekistan
|
2.4
|
|
2.8
|
|
4.4
|
|
5.6
|
|
5.7
|
|
Kazakhstan
|
3.1
|
|
3
|
|
3
|
|
2.7
|
|
4.4
|
|
•
|
we cannot assure you that our revenue will grow in the future, as competition puts pressure on prices;
|
•
|
with the increasing pace of technological developments, including new digital technologies and regulatory changes impacting our industry, we cannot predict with certainty future business drivers and we cannot assure you that we will adapt to these changes at a competitive pace;
|
•
|
we may be forced to utilize more aggressive marketing schemes to retain existing customers and attract new ones that may include lower tariffs, handset subsidies or increased dealer commissions;
|
•
|
in more mature or saturated markets, such as Russia, there are limits on the extent to which we can continue to grow our customer base, and the continued growth of our business and results of operations will depend, in part, on our ability to extract greater revenue from our existing customers, including through the expansion of data services and the introduction of next generation technologies, which may prove difficult to accomplish;
|
•
|
we may be unable to deliver better customer experience relative to our competitors or our competitors may reach customers more effectively through better use of digital and physical distribution channels, which may negatively impact our revenue and market share;
|
•
|
as we expand the scope of our services, such as new networks, fixed-line residential and commercial broadband, Mobile Financial Services ("MFS") and Digital Financial Services ("DFS") offerings and other services, we may encounter a greater number of competitors that provide similar services;
|
•
|
the liberalization of the regulations in certain markets in which we operate could greatly increase competition;
|
•
|
competitors may operate more cost-effectively or have other competitive advantages such as greater financial resources, market presence and network coverage, stronger brand name recognition, higher customer loyalty and goodwill, and more control over domestic transmission lines;
|
•
|
competitors, particularly current and former state-controlled telecommunications service providers, may receive preferential treatment from the regulatory authorities and benefit from the resources of their shareholders;
|
•
|
current or future relationships among our competitors and third parties may restrict our access to critical systems and resources;
|
•
|
new competitors or alliances among competitors could rapidly acquire significant market share, and we may not be able to form similar relationships to capitalize on such opportunities;
|
•
|
reduced demand for our core services of voice, messaging and data and the development of services by application developers (commonly referred to as OTT players) could significantly impact our future profitability;
|
•
|
competitors may partner with OTT players to provide integrated customer experiences, and we may be unable to implement offers, products and technology to support our commercial partnerships; and
|
•
|
our existing service offerings could become disadvantaged as compared to those offered by competitors who can offer bundled combinations of fixed-line, broadband, public Wi-Fi, TV and mobile.
|
•
|
difficulties in realizing expected synergies and investment returns from acquired companies, joint ventures, investments or other forms of strategic partnerships;
|
•
|
unsuccessful integration of personnel, products, property and technologies into our existing business;
|
•
|
higher or unforeseen costs of integration or capital expenditure (including the time and resources of our personnel required to successfully integrate any combined businesses);
|
•
|
difficulties relating to the acquired or formed companies’ or our partnerships’ compliance with telecommunications or other regulatory licenses and permissions, compliance with laws, regulations and contractual obligations, ability to obtain and maintain favorable interconnect terms, frequencies and numbering capacity and ability to protect our intellectual property;
|
•
|
adverse market reactions stemming from competitive and other pressures;
|
•
|
difficulties in retaining key employees of the merged or acquired business or strategic partnerships who are necessary to manage the relevant businesses;
|
•
|
difficulties in maintaining uniform standards, controls, procedures and policies throughout our businesses;
|
•
|
risks related to loss of full control of a merged business, or not having the ability to adequately control and manage an acquired business, strategic partnership or investment;
|
•
|
risks that different geographic regions present, such as currency exchange risks, competition, regulatory, political, economic and social developments, which may, among other things, restrict our ability to successfully capitalize on our acquisition, merger, joint venture or investment;
|
•
|
adverse customer reaction to the business acquisition or combination; and
|
•
|
increased liability and exposure to contingencies that we did not contemplate at the time of the merger, acquisition, strategic partnership or investment, including tax liabilities.
|
•
|
restrictions or delays in obtaining additional numbering capacity, receiving new licenses and frequencies, receiving regulatory approvals for rolling out our networks in the regions for which we have licenses, receiving regulatory
|
•
|
significant additional costs, including fines and penalties, operational burdens and other difficulties associated with not complying in a timely manner, or at all, with new or existing legislation or the terms of any notices or warnings received from the telecommunications and other regulatory authorities; and
|
•
|
adverse rulings or audit findings by courts or government authorities resulting from a change in interpretation or inconsistent application of existing law,
|
•
|
failure to act in good faith and in accordance with the group’s values, Code of Conduct, other policies, procedures, and internal standards;
|
•
|
failure to comply with applicable laws or regulations, or association, real or perceived, with illegal activity;
|
•
|
failures in corporate governance, management or systems;
|
•
|
association with controversial practices, customers, transactions, projects, countries or governments;
|
•
|
association with controversial business decisions, including but not limited to, those relating to existing or new products, delivery channels, promotions/advertising, acquisitions, representation, sourcing/supply chain relationships, locations, or treatment of financial transactions; or
|
•
|
association with poor employment or human rights practices.
|
•
|
the success of competitive products or technologies;
|
•
|
the issuance of new shares or sales of shares by major shareholders or the perception that such issuances or sales could occur;
|
•
|
regulatory developments in the foreign countries in which we operate;
|
•
|
developments or disputes concerning licenses or other proprietary rights;
|
•
|
the recruitment or departure of key personnel;
|
•
|
quarterly or annual variations in our financial results or those of companies that are perceived to be similar to us;
|
•
|
market conditions in the industries in which we compete and issuance of new or changed securities analysts’ reports or recommendations;
|
•
|
the failure of securities analysts to cover our shares or changes in financial estimates by analysts;
|
•
|
investor perception of our company and of the industry in which we compete; and
|
•
|
general economic, political and market conditions.
|
Name of significant subsidiary
|
Country of incorporation
|
Nature of subsidiary
|
Percentage of ownership interest
|
|
|
|
|
|
|
VEON Amsterdam B.V.
|
Netherlands
|
Holding
|
100.0
|
%
|
VEON Holdings B.V.
|
Netherlands
|
Holding
|
100.0
|
%
|
PJSC VimpelCom
|
Russia
|
Operating
|
100.0
|
%
|
JSC “Kyivstar”
|
Ukraine
|
Operating
|
100.0
|
%
|
LLP “KaR-Tel”
|
Kazakhstan
|
Operating
|
75.0
|
%
|
LLC “Unitel”
|
Uzbekistan
|
Operating
|
100.0
|
%
|
LLC “VEON Georgia”
|
Georgia
|
Operating
|
80.0
|
%
|
CJSC “VEON Armenia”
|
Armenia
|
Operating
|
100.0
|
%
|
LLC “Sky Mobile”
|
Kyrgyzstan
|
Operating
|
50.1
|
%
|
VEON Luxembourg Holdings S.à r.l.
|
Luxembourg
|
Holding
|
100.0
|
%
|
VEON Luxembourg Finance Holdings S.à r.l.
|
Luxembourg
|
Holding
|
100.0
|
%
|
VEON Luxembourg Finance S.A.
|
Luxembourg
|
Holding
|
100.0
|
%
|
Global Telecom Holding S.A.E.
|
Egypt
|
Holding
|
99.5
|
%
|
Omnium Telecom Algérie S.p.A.*
|
Algeria
|
Holding
|
45.4
|
%
|
Optimum Telecom Algérie S.p.A.*
|
Algeria
|
Operating
|
45.4
|
%
|
Pakistan Mobile Communications Limited
|
Pakistan
|
Operating
|
85.0
|
%
|
Banglalink Digital Communications Limited
|
Bangladesh
|
Operating
|
100.0
|
%
|
Russia
|
We have interconnection agreements with mobile and fixed-line operators in Russia. During 2019, we had the following MTRs in Russia: average cost per minute of national traffic 0.9367 RUB (US$ 0.0145) and average price per minute of national traffic 0.9861 RUB (US$ 0.0152), which were broadly stable as compared to the 2018 and 2017 historical periods.
|
Pakistan
|
In the territories of Pakistan and Azad Jammu and Kashmir (“AJK”) and Gilgit-Baltistan, we have several interconnection agreements with mobile and fixed-line operators. Our MTRs in 2018 and 2019, were at PKR 0.9 (US$0.00739) and PKR 0.8 (US$0.0053), respectively, and in 2020 it is PKR 0.70 (US$0.00452).
|
Algeria
|
We have interconnection agreements with mobile, VoIP and fixed-line operators. For the 2016-2017 period, the evolution of MTRs was favorable to our business despite an asymmetry with our competitors. For the 2017-2018 period, our MTR remained stable and the asymmetry was reduced both in scope (with one competitor instead of two benefitting from the asymmetry) and in value (the gap between MTRs was reduced). In the reference interconnection offer approved for the 2018-2019 period, the ARPCE imposed symmetrical MTRs for all three operators both for voice and SMS (respectively 0.95 DA for voice and 1.5 for SMS). In the last Reference Interconnect Offer (2019-2020), Autorité de Régulation de la Poste et des Communications Electroniques (the “ARPCE”) returned to the asymmetry for voice MTR (0.95, 0.74, and 0.67 for Ooredoo, Mobilis, and DJEZZY, respectively) while maintaining symmetry for SMS (1.5 DA).
|
Bangladesh
|
We have interconnection agreements with interconnection exchange (ICX) operators, international gateway (IGW) operators, mobile operators, internet protocol telephony service providers (IPTSPs) and fixed-line operators. The international termination rate was changed, effective February 14, 2020, after which the minimum termination rates became US$ 0.006/min. IGW conducts revenue sharing based on the minimum international call termination rate, of which 22.5% is shared with MNOs. The domestic termination rate has been changed to BDT 0.14/min or US$0.0017/min (terminating MNO gets BDT 0.10 (US$0.0012) and ICX gets BDT 0.04 (US$0.0005)), effective August 14, 2018.
|
Ukraine
|
We have interconnection agreements with various mobile and fixed-line operators. Effective January 1, 2019, MTR rates in Ukraine were reduced from UAH 0.15/min (US$ 0.0057) to UAH 0.12/min (US$0.0046). IMTR rates remain at current rate EUR 0.10/min.
|
Uzbekistan
|
We have interconnection agreements with various mobile and fixed-line operators. On September 5, 2017, the State Committee of Uzbekistan on Privatization, Demonopolization and Development of Competition (“State Committee of Uzbekistan”) issued an injunction requiring Unitel LLC to implement equal mobile termination rates for all national operators. Unitel LLC unsuccessfully challenged this injunction in Uzbek Courts. Our MTR for 2019 was UZS 0.05/minute as established by the court decision.
|
Kazakhstan
|
We have interconnection agreements with mobile and fixed-line operators. Our MTR for 2019 for local mobile operators was 5.60 KZT/min. (VAT including approximately US$0.0148; regulated) and 14.80 KZT/minute (VAT including approximately US$0.0391) for fixed-line operators.
|
Mobile Service Description
|
Russia
|
Pakistan
|
Algeria
|
Bangladesh
|
Ukraine
|
Uzbekistan
|
Kazakhstan
|
Others(3)
|
Value added and call completion services (1)
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
National and international roaming services(2)
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
Wireless Internet access
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes(4)
|
Yes
|
Yes
|
Yes
|
Mobile financial services
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes(5)
|
Yes
|
Yes
|
No/Yes(7)
|
Mobile bundles
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes
|
Yes(6)
|
(1)
|
Value added services include messaging services, content/infotainment services, data access services, location based services, media, and content delivery channels.
|
(2)
|
Access to both national and international roaming services allows our customers and customers of other mobile operators to receive and make international, local and long-distance calls while outside of their home network.
|
(3)
|
For a description of the mobile services we offer in Kyrgyzstan, Armenia, and Georgia, see “—Mobile Business in Others.”
|
(4)
|
Includes 4G
|
(5)
|
Includes Smart Money (payment method for services via mobile phone)
|
(6)
|
Reflects mobile bundles provided in Armenia and Kyrgyzstan.
|
(7)
|
Reflects services offered in Armenia and Kyrgyzstan.
|
Voice
|
• airtime charges from mobile postpaid and prepaid customers, including monthly contract fees for a predefined amount of voice traffic and roaming fees for airtime charges when customers travel abroad
|
Internet and Data Access
|
• GPRS/EDGE; 3G/HSPA; 4G/LTE; special wireless “Plug&Play” USB modems
|
Roaming
|
• active roaming agreements with 706 GSM networks in 214 countries
|
• GPRS roaming with 606 networks in 189 countries
|
• 4G/LTE roaming with 325 networks in 133 countries
|
• roaming agreements generally state that the host operator bills PJSC VimpelCom for roaming services; PJSC VimpelCom pays these charges and then bills the customer for these services on a monthly basis
|
VAS
|
• caller-ID; voicemail; call forwarding; conference calling; missed call notification (via text); call blocking and call waiting
|
Messaging
|
• SMS (consumer and corporate); MMS and voice messaging (allows customers to send pictures, audio and video to mobile phones and to e-mails); mobile instant messaging
|
Content/infotainment
|
• voice services (including referral services); content downloadable to telephone (including music, pictures, games and video); RBT; mobile cloud solutions; geo-positioning and compass service for fleet and assets management; and M2M control center solution for all M2M/IoT verticals, Smart TV services, including Beeline TV
|
Mobile financial services
|
• Mobile payment; banking card; trusted payment; loans repayments; remittances; banks notification; and mobile insurance
|
(1)
|
In total, our GSM licenses cover approximately 97% of Russia’s population.
|
(2)
|
PJSC VimpelCom holds one of three 3G licenses in Russia.
|
(3)
|
In July 2012, PJSC VimpelCom was awarded a mobile license, a data transmission license, a voice transmission license and a telematic license for the provision of 4G/LTE services in Russia. These licenses allow PJSC VimpelCom to provide services using radio-electronic devices in Russia via networks that use 4G/LTE standard equipment within any of the following frequency bands: 735-742.5/776-783.5 MHz; 813.5-821/854.5-862 MHz; and 2550-2560/2670-2680 MHz. Certain channels allocated to us in accordance with the licenses have restrictions on their use. To remove restrictions, we have to perform organizational technical measure field tests. The rollout of the 4G/LTE network is using a phased approach based on a pre-defined schedule pursuant to the requirements of the license.
|
(4)
|
This includes 83 regions of Russia, except for Republic of Crimea and Sevastopol.
|
LICENSE FEES
|
PJSC VimpelCom must pay an annual fee for the use of radio frequency spectrum. These fees were RUB 3,946 million and RUB 5,508 million for the years ended December 31, 2019 and 2018, respectively. Under Federal Law No. 126 FZ “On Communication” and license terms, PJSC VimpelCom is required to make universal service fund contributions in the amount equal to 1.2% of corporate revenues from provided communications services. Universal service fund contributions were RUB 2,345 million and RUB 2,404 million for the years ended December 31, 2019 and 2018, respectively. PJSC VimpelCom is also subject to certain other license fees on a case-by-case basis.
|
Operator
|
Customers in Russia
(in millions) |
MTS
|
71.7
|
MegaFon
|
68.7
|
PJSC VimpelCom
|
52.0
|
Tele2
|
44.2
|
Voice
|
• airtime charges from mobile postpaid and prepaid customers, including monthly contract fees for a predefined amount of voice traffic and roaming fees for airtime charges when customers travel abroad
|
Internet and data access
|
• GPRS, EDGE, 3G and 4G/LTE
|
Roaming
|
• active roaming agreements with 326 GSM networks in 148 countries
|
• GPRS roaming with 248 networks in 116 countries
|
• CAMEL roaming through 122 networks in 67 countries
|
• roaming agreements generally state that the host operator bills PMCL for the roaming services; PMCL pays these charges and then bills the customer for these services on a monthly basis
|
VAS
|
• caller-ID; voicemail; call forwarding; conference calling; call blocking and call waiting
|
Messaging
|
• SMS, MMS (which allows customers to send pictures, audio and video to mobile phones and to e-mail), and mobile instant messaging
|
Content/infotainment
|
• ecosystem of digital services: mobile TV, music and live audio streaming, video streaming, mobile magazine, sports (including cricket), mega deals
|
Mobile financial services(1)
|
• mobile payment; banking card; trusted payment; banks notification; and mobile insurance
|
(1)
|
Mobilink Microfinance Bank Limited (“Mobilink Bank”), our wholly owned subsidiary owned through Global Telecom Holding SAE, carries on a microfinance banking business and provides certain MFS, DFS and traditional banking services (including the granting of microfinance loans, provision of credit, payment and transfer services and a variety of other banking services) in Pakistan under license granted by the State Bank of Pakistan and is subject to regulation by the State Bank of Pakistan. In partnership with Jazz, Mobilink Bank offers mobile wallets and payment services under the brand “Jazz Cash”.
|
(1)
|
Warid (now merged with Jazz) acquired a 15-year technology neutral license in 2004 for US$291 million. US$145.5 million was paid upfront with the remainder paid in ten equal annual installments starting with a four-year grace period, with the last payment made May 2018. The same 2G license was amended in December 2014 by the Pakistan Telecommunication Authority (“PTA”) to allow Warid to provide 4G/LTE services in Pakistan. Additionally, the National Accountability Bureau is currently conducting an investigation into certain former PTA and other officials, and has requested information from Jazz concerning Warid’s 2014 license amendment while the investigation is ongoing.
|
(2)
|
The ex-Warid license renewal was due in May 2019. Pursuant to directions from the Islamabad High Court, the PTA issued a license renewal decision on July 22, 2019 requiring payment of US$39.5 million per MHz for 900 MHz spectrum and US$29.5 million per MHz for 1800 MHz spectrum, equating to an aggregate price of approximately US$450 million (excluding advance tax of 10%). On August 17, 2019, Jazz appealed the PTA’s order to the Islamabad High Court. On August 21, 2019, the Islamabad High Court suspended the PTA’s order pending the outcome of the appeal and subject to Jazz making payment in the form of security (under protest) as per the options given in the PTA’s order. In September 2019, Jazz deposited approximately US$225 million in order to maintain its appeal in the Islamabad High Court regarding the PTA’s underlying decision on the license renewal. There were no specific terms and conditions attached to the deposit. The deposit is recorded as a non-current financial assets in the statement of financial position. The next hearing date before the Islamabad High Court is April 9, 2020
|
(3)
|
In addition, PMCL and its subsidiaries have other licenses, including LDI, WLL, local loop licenses, licenses to provide non-voice communication services, and licenses to provide class VAS in Pakistan, AJK and Gilgit-Baltistan. The licensees must also pay annual fees (0.5%) to the PTA and make universal service fund contributions (1.5%) and/or research and development fund contributions (0.5%), as applicable, in a total amount equal to a percentage of the licensees’ annual gross revenues (less certain allowed deductions) for such services.
|
(4)
|
In 2007, PMCL renewed its 2G license for a further term of 15 years. As of December 31, 2019, PMCL had paid its outstanding balance of US$14.5 million to the PTA for the renewal of its 2G license (paid on December 5, 2019). This amount had been payable in yearly installments of US$14.5 million, payable in December of each year, until December 2019. PMCL has two 15-year licenses for provision of cellular mobile 2G services in AJK and Gilgit-Baltistan.
|
LICENSE FEES
|
Under the terms of its 2G, 3G and 4G/LTE licenses, as well as its license for services in AJK and Gilgit-Baltistan, PMCL must pay annual fees to the PTA and make universal service fund contributions and/or research and development fund contributions, as applicable (not all of the foregoing are applicable to all licenses), in a total amount equal to 2.5% of PMCL’s annual gross revenues (less certain allowed deductions) for such services, in addition to spectrum administrative fees.
|
PMCL’s total license fees (annual license fees plus revenue sharing) in Pakistan (excluding the yearly installments noted above) were US$24.7 million, US$26.9 million, and US$26.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. PMCL’s total spectrum administrative fee payments, including for Warid’s spectrum, were US$1.6 million, US$1.9 million, and US$1.5 million for the years ended December 31, 2019, 2018, and 2017, respectively.
|
Operator
|
Customers in
Pakistan (in millions) |
PMCL (“Jazz”)
|
60.5
|
Telenor Pakistan
|
45.7
|
Zong
|
35.8
|
Ufone
|
23.4
|
Voice
|
• airtime charges from mobile postpaid and prepaid customers, including monthly contract fees for a predefined amount of voice traffic and roaming fees for airtime charges when customers travel abroad
|
Internet and data access
|
• GPRS, EDGE, 3G and 4G/LTE technology
|
• data services available via pay-per-use and via a bundle
|
Roaming
|
• active roaming agreements with 458 GSM networks in 158 countries
|
• GPRS roaming with 316 networks in 119 countries
|
• 3G roaming with 250 networks in 109 countries
|
• 4G/LTE roaming with 73 networks in 39 countries
|
• GPRS, EDGE, 3G and 4G/LTE technology
|
• roaming agreements generally state that the host operator bills OTA for roaming services; OTA pays these charges and then bills the customer for these services on a monthly basis
|
VAS
|
• caller-ID; call forwarding; conference calling; call blocking; call waiting; beep call; verso+; collect SMS; VMS vocal message service; A2P; and short code third party services
|
Messaging
|
• SMS, MMS (which allows customers to send pictures, audio and video to mobile phones and to e-mail), and mobile instant messaging
|
Content/infotainment
|
• mobile message notification service offering packages with various types of content (sports, news, food, culture) (SMS SCOOP); ring back tunes (RBT); co-branding with VTC service app (Yassir); game portal
|
Mobile financial services
|
• peer-to-peer credit transfer and credit loan
|
(1)
|
In 2001, OTA was awarded a 15-year license to operate a 2G telecommunications network for an aggregate fee of approximately US$737 million. The license expired in 2016 and was renewed for a five-year period at no additional cost (Decree 17-195 of June 11, 2017).
|
(2)
|
In 2003, OTA acquired a VSAT data-voice license for an aggregate fee of US$2.05 million and renewed the license in 2014 for an additional period of five years, at no additional cost. This license expired in April 2019, and, a new license agreement was signed in September 2019 between Optimum, ARPCE and MPT, with publication of the executive decree finalizing the renewal expected by December 2020.
|
(3)
|
In 2013, OTA was awarded a 15-year license to operate a 3G telecommunications network for an aggregate fee of approximately US$38 million, which was paid in full in 2013. Under the terms of its 3G license, OTA is required to pay an additional annual revenue sharing fee of 1% based on 3G revenues less interconnection costs.
|
(4)
|
Under the terms of its 4G/LTE license, Optimum is required to pay an additional annual revenue sharing fee of 1% based on 4G/LTE revenues less interconnection costs.
|
LICENSE FEES
|
Under the terms of its 2G, 3G, 4G/LTE and VSAT licenses, OTA is required to pay contributions for the universal service and environmental protection fund (3% of revenues); management of the numbering plan (0.2% of revenues less interconnection costs); research, training and standardization (0.3% of revenues less interconnection costs); license fees for 3G and 4G licenses (1% of revenue less interconnection costs; and a new tax (0.5% of revenues excluding VSAT) introduced in the 2018 Finance Law.
OTA’s total license fees in Algeria were US$65.1 million, US$62.6 million, and US$61.8 million for the years ended December 31, 2019, 2018 and 2017, respectively, of which US$27.8 million, US$28.1 million, and US$28.1 million, respectively, was related to spectrum charges, and US$37.3(1) million, US$34.5 million, and US$33.7 million, respectively, was related mainly to contributions made to the Universal Services of Telecommunications fund and to the number plan management over the same periods.
|
(1)
|
Reflects a change of the universal services tax calculation rule, from a calculation base of 3% of total revenue less interconnection cost to a calculation base of 3% of total revenue, with retroactivity on 2018 (impact of US$2.2 million of 2018 reported on 2019).
|
Operator
|
Customers in
Algeria (in millions) |
Mobilis
|
21.6
|
Optimum (“Djezzy”)
|
14.6
|
Ooredoo
|
12.6
|
Voice
|
• airtime charges from mobile postpaid and prepaid customers, including voice packs and mixed bundles
|
Internet and data access
|
• GPRS, EDGE, 3G and 4G/LTE technology
|
• data services provided via pay-per-use and via a bundle
|
Roaming
|
• active roaming agreements with 400 GSM networks in 145 countries
|
• GPRS roaming with 301 networks in 115 countries
|
• maritime roaming and in-flight roaming
|
• roaming agreements generally state that the host operator bills BDCL for roaming services; BDCL pays these charges and then bills the customer for these services on a monthly basis
|
VAS
|
• call forwarding; conference calling; call blocking; call waiting; caller line identification presentation; call me back; and voicemail missed call alert
|
Messaging
|
• SMS, MMS (which allows customers to send pictures, audio and video to mobile phones and to e-mail) and mobile instant messaging
|
Content/infotainment
|
• news alert service; sports related content; job alerts; music streaming; mobile TV; content download; religious content; and RBT
|
Mobile financial services
|
• SMS and data network is provided to Bangladesh Post Office for their Mobile Money Order service
|
Services
|
License
|
Expiration
|
2G(1)
|
Nationwide
|
2026
|
3G(2)
|
Nationwide
|
2028
|
4G/LTE(3)
|
Nationwide
|
2033
|
(1)
|
In November 1996, BDCL was awarded a 15-year GSM license to establish, operate and maintain a digital mobile telephone network to provide 2G services throughout Bangladesh. The license was renewed in November 2011 for a further 15-year term.
|
(2)
|
In September 19, 2013, following a competitive auction process, BDCL was awarded a 15-year license to use 5 MHz of technology neutral spectrum in 2100MHz band and was also awarded a 3G license, for which it paid a total cost of BDT 8,677.4 million (inclusive of 5% VAT), including both a license acquisition fee and a spectrum assignment fee.
|
(3)
|
On February 13, 2018, BDCL acquired a 4G/LTE license for US$1.2 million. BDCL also acquired the right to use 10.6 MHz technology neutral of spectrum in 1800 MHz (5.6) and 2100 MHz (5) for US$323 million including VAT (33.34% of the fee has been considered as tariff value for 15% VAT). Banglalink also converted 15MHz of existing 2G spectrum for US$37.01 million.
|
LICENSE FEES
|
Under the terms of its 2G, 3G and 4G/LTE mobile licenses, BDCL is required to pay to the Bangladesh Telecommunication Regulatory Commission (i) an annual license fee of BDT 50.0 million (US$0.6 million as of December 31, 2019) for each mobile license; (ii) 5.5% of BDCL’s annual audited gross revenue, as adjusted pursuant to the applicable guidelines; and (iii) 1% of its annual audited gross revenue (payable to Bangladesh’s social obligation fund), as adjusted pursuant to the applicable guidelines. The annual license fees are payable in advance of each year, and the annual revenue sharing fees are each payable on a quarterly basis and reconciled at the end of each year.
BDCL’s total license fees (annual license fees plus revenue sharing) in Bangladesh were equivalent to US$36.9 million, US$34.7 million, and US$38.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. In addition to license fees, BDCL pays annual spectrum charges to the BTRC, calculated according to the size of BDCL’s network, its frequencies, the number of its customers and its bandwidth. The annual spectrum charges are payable on a quarterly basis and reconciled at the end of each year. BDCL’s annual spectrum charges were equivalent to US$11.8 million, US$11.8 million, and US$9.08 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Operator
|
Customers in
Bangladesh (in millions) |
Grameenphone
|
76.5
|
Robi Axiata
|
49.0
|
BDCL (“banglalink”)
|
33.6
|
Teletalk
|
4.9
|
Voice
|
• airtime charges from mobile postpaid and prepaid customers, including monthly contract fees for a predefined amount of voice traffic and roaming fees for airtime charges when customers travel abroad
|
Internet and data access
|
• GPRS/EDGE, 3G and 4G/LTE
|
Roaming
|
• active roaming agreements for 493 networks in 189 countries
|
• GPRS roaming on 431 networks in 167 countries
|
• 3G roaming on 316 networks in 133 countries
|
• 4G/LTE roaming on 75 networks in 56 countries
|
Messaging
|
• SMS; MMS; voice messaging and SMS services (including information services such as news, weather, entertainment chats and friend finder)
|
Content/infotainment
|
• voice services (including referral services); content downloadable to telephone (including music, pictures, games and video); mobile TV and RBT
|
Mobile financial services
|
• mobile payment; banking card; trusted payment; banks notification; mobile insurance; and Smart Money (payment method for services via mobile phone)
|
(1)
|
Licenses were received on October 5, 2011 for a term of 15 years each.
|
(2)
|
The license was issued on April 1, 2015 for a term of 15 years. Services provided in the 2100 MHz band. We have also obtained a range of national and regional radio frequency licenses for the use of radio frequency resources in the referred standards and in specified standards— radio-relay and WiMax. Our network coverage is (except the Anti-Terrorist Operation zone where Kyivstar is not able to use and control its network): 91.46% of the 2G network; 18.7% of the 3G network; 9,864 localities covered by 2G network; and 25,484 localities covered by 3G network.
|
(3)
|
Kyivstar secured 4G/LTE licenses and spectrum in two separate transactions in 2018. Following the auction held on January 31, 2018, Kyivstar acquired 15 MHz (paired) of contiguous frequency in the 2600 MHz band for UAH 0.9 billion (US$32 million as of December 31, 2017). In addition, on March 6, 2018, Kyivstar secured the following spectrum through auction in the 1800MHz band: 25MHz (paired) for UAH 1.325 billion (US$47 million as of December 31, 2017) and two lots of 5MHz (paired) for UAH 1.512 billion (US$54 million as of December 31, 2017).
|
(4)
|
The date is valid for licenses to provide telecommunications services. Due to the changes to legislation that came into force on December 24, 2019, extensions and renewals of these licenses will not be required in future. The licenses for the radio frequency resource in 900 MHz are currently (as of February 27, 2020) being re-issued as part of a government project on 900 MHz redistribution and refarming as a way to introduce 4G (LTE) into 900 MHz. As a result of this project, Kyivstar returned 12.5 MHz and received back on average across the country 11.9 MHz, out of which 6.2 MHz was provided with technological neutrality license conditions.
|
LICENSE FEES
|
In 2019, Kyivstar PJSC made spectrum and license payments as follows: annual fee for the use of radio frequency spectrum - UAH 991 million (paid to the State Budget); EMC monitoring - UAH 226.3 million (paid to Ukrainian State Center of Radio Frequencies); and an extension of existing licenses and acquisition of new licenses (13 licenses in all) on use of radio frequency spectrum and fixed line services - UAH 23.1 million (paid to the State Budget).
|
Operator
|
Customers
(in millions) |
Kyivstar
|
26.2
|
“VF Ukraine” JSC
|
19.6
|
“lifecell” LLC
|
7.4
|
Voice
|
• airtime charges from mobile postpaid and prepaid customers, including monthly contract fees for a predefined amount of voice traffic and roaming fees for airtime charges when customers travel abroad
|
• GSM service is provided in 2G and 3G networks; call duration for one session is limited to 40 minutes
|
Internet and data access
|
• GPRS/EDGE/3G/4G/LTE networks
|
Roaming
|
• active roaming agreements with 487 GSM networks in 186 countries
|
• GPRS roaming with 392 networks in 164 countries
|
• CAMEL roaming through 287 networks in 123 countries
|
• roaming agreements generally state that the host operator bills us for roaming services; we pay these charges and then bill the customer for these services on a monthly basis
|
VAS
|
• caller-ID; voicemail; call forwarding; conference calling; call blocking; and call waiting
|
Messaging
|
• SMS and voice messaging
|
Content/infotainment
|
• voice services (including referral services), content downloadable to telephone (including music, pictures, games and video), RBT, SMS content services (including information services such as news, weather, entertainment chats and friend finder) and proprietary digital content services (including Beeline TV and Beeline music)
|
Mobile financial services
|
• proprietary payment system “Beepul” (including card-to-card transfer); bank card payments; and trusted payment
|
Services
|
License
|
Expiration
|
GSM900/1800(1)
|
Nationwide
|
August 7, 2031
|
3G(1)
|
Nationwide
|
August 7, 2031
|
4G/LTE(1)
|
Nationwide
|
August 7, 2031
|
International Communication Services License
|
Nationwide
|
2026
|
Data Transfer
|
Nationwide
|
Unlimited/June 2020(2)
|
Inter-city communication services license
|
Nationwide
|
2026
|
TV broadcasting
|
Nationwide
|
2023
|
(1)
|
Requires annual license fee payments.
|
(2)
|
License for exploitation of the data transfer network does not have a fixed term, and license for design, construction and service provision of data transfer network expires in June 2020.
|
LICENSE FEES
|
In 2019, Unitel LLC made payments for spectrum and licenses with the following split: the annual fee for use of radio frequency spectrum in the total amount of US$3,246,693 and renewal of existing licenses (7 licenses in total) in the total amount of US$3,239,835 paid to the state budget of Ministry for Development of Information Technologies and Communications.
|
Operator
|
Customers
(in millions) |
LLC “Unitel”
|
8.1
|
Ucell
|
7.1
|
UzMobile (Uzbektelecom)
|
4.8
|
UMS
|
3.0
|
Perfectum
|
0.3
|
Voice
|
•
Standard voice services
|
•
Prepaid and postpaid airtime charges from customers, including weekly and monthly contract fees for a predefined amount of voice traffic and roaming fees for airtime usage when customers travel abroad
|
Internet and data access
|
• 3G and 4G/LTE service
|
• technology neutral licenses
|
Roaming
|
• Voice roaming with 561 networks in 191 countries
|
• 4G/LTE roaming with 174 networks in 77 countries
|
• GPRS roaming with 472 networks in 152 countries
|
• CAMEL roaming through 351 networks in 137 countries
|
• roaming agreements generally state that the host operator bills us for roaming services; we pay these charges and then bill the customer for these services on a monthly basis
|
VAS
|
• caller-ID; voicemail; call forwarding; call blocking; trusted payment; receiving party pays (RPP); callback services; mobile transfer (transferring funds from the balance of one subscriber to the balance of another)
|
Messaging
|
• SMS; display of Beeline account balance information
|
Content/infotainment
|
• Brand Content (including Yandex, ZVOOQ, Book.beeline.kz, Viktorina, RBT)
• Non-Brand (including Voice CPA, Content), SMS inform, free phone
|
Mobile financial services
|
• proprietary payment system “Beepul” (including card-to-card transfer); bank card payments; and trusted payment
|
Licenses (as of December 31, 2019)
|
Expiration
|
Mobile services (GSM900/1800, UMTS/WCDMA2100, 4G/LTE800/1800)
|
Unlimited term
|
(1)
|
License received on August 24, 1998.
|
(2)
|
KaR-Tel has permission to use of spectrum in 800 MHz, 900 MHz, 1800 MHz and 2100 MHz for mobile services and in 2.5-2.6 GHz, 3.3-3.5 GHz, and 5,5 GHz for wireless access to internet (WLL).
|
(3)
|
Upfront payments in US$ are: 800 MHz (US$62,691,378) in 2016, 900 MHz (US$67,500,000) in 1998, 1800 MHz (US$10,958,904) for 4G in 2016, 2G (US$20,783,107) in 2008, and 2100 MHz (US$34,106,412) in 2010.
|
LICENSE FEES
|
Under the Kazakhstan tax code, in 2019 KaR-Tel was required to pay: (i) an annual fee for the use of radio frequency spectrum amounting to KZT 5,632,286,663 for mobile and KZT 141,685,472.30 for a wireless local loop (WLL); and (ii) a mobile services provision payment amounting to 1.3992% of corporate revenues from provided communications services, which totaled KZT 1,743,099,899.
|
Operator
|
Customers
(in millions) |
Beeline Kazakhstan
|
10.4
|
Telia Company (Kcell)
|
8.2
|
Tele2/Altel
|
7.3
|
Payment Plan
|
Kyrgyzstan
|
Armenia
|
Georgia
|
Prepaid
|
95.4%
|
87.5%
|
100%
|
Postpaid
|
4.6%
|
12.5%
|
—%
|
(1)
|
The license is valid for both fixed/mobile operations countrywide
|
|
2019
(millions of customers) |
Mobile Penetration
|
2018
(millions of customers) |
Mobile Penetration
|
Kyrgyzstan
|
2.3
|
126.8%
|
2.6
|
121.5%
|
Armenia
|
0.9
|
127.6%
|
1.0
|
125.9%
|
Georgia
|
1.4
|
134.8%
|
1.3
|
133.2%
|
Services
|
• network access and hardware and software solutions, including configuration and maintenance, SaaS and an integrated managed service
|
• local access services by connecting the customers’ premises to our own fiber network, international and domestic long-distance services and VSAT services to customers located in remote areas
|
• internet access to both corporate and consumer customers through backbone networks and private line channels
|
• IP address services, the ability to rent leased channels with different high-speed capacities and remote access to corporate information, databases and applications.
|
• managed Wi-Fi networks based on IEEE 802.11b/g/n/ac wireless technology
|
• virtual PSTN number, xDSL services, session initiation protocol (SIP) connection, financial information services, data center services, such as co-location, web hosting, audio conference and domain registration services
|
• IPTV services (1.45 million customers), virtual PBX, certain Microsoft Office packages (including SaaS), web-videoconferencing services and sale, rental and technical support for telecommunications equipment
|
• Pay TV (cable TV) (25,591 customers)
|
•
OTT TV (TVE)
|
• FMC product services (1,334,834 customers)
|
• carrier and operator services, including voice, internet and data transmission over our own networks and roaming services
|
• MPLS-based IP VPN, local, domestic and international private lines, equipment and equipment maintenance (under interconnection agreements with international global data network operators
|
• high-speed domestic and international channels to international and Russian operators to sell excess backbone network capacity
|
Coverage
|
• all major population centers
|
•
40 regions of Russia (175 cities covered by FTTB network), including FVNO projects
|
Operations
|
• operate a number of competitive local exchange carriers that operate fully digital overlay networks in a number of major Russian cities
|
Customers
|
•
FTTB and FMC
|
• large multinational corporate groups
|
• government clients
|
• SMEs
|
• high-end residential buildings in major cities
|
Services
|
License
|
Expiration
|
Local Communications Services
|
Krasnodar
|
October 1, 2020
|
Leased Communications Circuits Services
|
St. Petersburg
|
June 8, 2020
|
Intra-zone Communication Services
|
Krasnodar
|
December 12, 2020
|
Telematic Services
|
Krasnodar
|
September 14, 2020
|
Moscow
|
November 21, 2020
|
|
St. Petersburg
|
November 21, 2020
|
|
Data Transmission Services License
|
Krasnodar
|
September 14, 2020
|
Services
|
• data, voice and VAS services over a wide range of access media, covering the major cities
|
• data services being provided to the enterprise customers include: dedicated internet access, VPN (virtual private networking), leased lines & fixed telephony
|
• domestic and international leased lines, domestic and international MPLS, and IP transit services through our access network1
|
• high-speed internet access (including fiber optic lines)
|
• telephony
|
• telephone communication services, based on modern digital fiber optic network
|
• dedicated lines of data transmission
|
• dedicated line access and fixed-line mobile convergence
|
Coverage
|
• wired and wireless access services include FTTx, PMP (point to multipoint), point-to-point radios, VSAT, and WiMax connecting more than 225 locations across Pakistan
|
Operations
|
• long-haul fiber optic network covers more than 10,000 kilometers and, supplemented by wired and wireless networks
|
Customers
|
• enterprise customers
|
• domestic and international carriers
|
• corporate and individual business customers
|
Internet Services
|
||
• PTCL
|
• Wi-Tribe
|
• World Call
|
• Wateen
|
|
|
Carrier and Operator Services
|
||
• PTCL
|
• Wi-Tribe
|
• World Call
|
• Wateen
|
• Telenor Pakistan
|
|
Fixed-line Broadband
|
||
• Pakistan Telecommunication Company Limited, or “PTCL”
|
• Cybernet
|
• Supernet
|
• Multinet
|
• Nexlinx
|
|
• Wateen
|
• Nayatel
|
|
Services
|
License
|
Expiration
|
Long Distance & International (“LDI”)
|
Nationwide and International
|
2024
|
Local Loop (“LL”) (fixed line and/or wireless local loop with limited mobility)
|
Regional
|
2024
|
Services
|
• data
|
• broadband services
|
• corporate internet access
|
• Fixed-line: VPN services, data center, contact center, voice, fixed-line telephony and a number of VAS
|
• Internet access services: ADSL, symmetrical and Ethernet interfaces at speeds ranging from 256 kilobytes per second to 10 gigabytes per second
|
• FMC
|
• FTTB services tariffs for fixed-line broadband internet access targeted at different customer segments
|
Coverage
|
• provided services in 122 cities in Ukraine (excluding cities in Crimea and the ATO zone)
|
• engaged in a project to install FTTB for fixed-line broadband services in approximately 42,131 residential buildings in 122 cities, providing over 58,158 access points
|
Voice Services(1), Data Services(2) and Voice Services
|
||
• Ukrtelecom
|
• Datagroup
|
• Farlep-Invest (Vega)
|
Retail Internet Services
|
||
• Ukrtelecom
|
• Volia
|
|
(1)
|
Voice services market for business customers only.
|
(2)
|
Data services for corporate market only.
|
Services(1)
|
• fixed-line services, such as network access
|
• internet and hardware and software solutions, including configuration and maintenance
|
• high-speed internet access (including fiber optic lines and xDSL)
|
• telephony
|
• long distance and international long-distance telephony on prepaid cards
|
• telephone communication services, through our copper cable network and our modern digital fiber optic network
|
• dedicated lines of data transmission
|
• dedicated line access and fixed-line mobile convergence
|
Fixed-line Services
|
|
• Uztelecom
|
• Sharq Telecom
|
• East Telecom
|
• TPS
|
• Sarkor Telecom
|
• EVO
|
Services
|
License
|
Expiration
|
Fixed-line
|
Nationwide
|
2021
|
Data
|
Nationwide
|
2021
|
Long-distance
|
Nationwide
|
2029
|
International
|
Nationwide
|
2029
|
Services
|
• PSTN-fixed telephony
|
• internet, data transmission and network access
|
• domestic and international voice termination
|
• TCP/IP international transit traffic services
|
• local telephony services
|
• international and domestic long distance services
|
• broadband access services (including ADSL, VDSL, LTE 450 and fiber optic lines)
|
• VoIP services
|
• Session Initiated Protocol telephony
|
• wholesale services, such as leased line service and wholesale broadband services
|
• wholesale international voice termination and origination services for other local and international operators and service providers
|
• fixed-line broadband internet access based on ADSL and FTTB technologies
|
• dial-up services and wireless internet access based on CDMA technology
|
• FMC bundles, offering fixed internet, fixed TV and mobile services, and fixed voice services
|
Fixed Internet and Cable TV Services
|
• U!Com
|
• Rostelcom
|
Services
|
License
|
Expiration
|
Fixed communication
|
Nationwide
|
2028
|
Fixed wireless access (450 MHz (LTE450))
|
Regional
|
2023
|
Services
|
• high-speed internet access
|
• local, long distance and international voice services over IP
|
• local, intercity and international leased channels and IP VPN services
|
• cloud services
|
• integrated corporate networks (including integrated network voice, data and other services)
|
• FMC product, including mobile bundles and video content from Amediateka and IVI
|
• ADSL, FTTB, Wi-Fi, WiMax, VSAT
|
Internet, Data Transmission and Traffic Termination Services
|
|
• Kazakhtelecom
|
• TransTelecom (owned by Kazakhstan Temir Zholy, the national railway company)
|
• KazTransCom
|
• Astel (a leader in the provision of satellite services)
|
Services
|
License
|
Expiration
|
Long-distance and International
|
Nationwide
|
Unlimited
|
•
|
Stakeholders: By engaging with our stakeholders, we understand their concerns and expectations, and we follow a number of stakeholder-defined standards and guidelines;
|
•
|
Materiality: Using pre-defined criteria, we prioritize by assessing individual opportunities against our strategy and their importance to our stakeholders; and
|
•
|
Accountability: We are accountable to our stakeholders through the publication of our annual Sustainability Report. We also share periodic updates with internal stakeholders, including members of management, to inform them about key corporate responsibility-related developments and our corporate responsibility performance.
|
•
|
Telenor Global Services AS, a Norwegian subsidiary, has an interconnection agreement with Telecommunication Company of Iran, the parent company of Mobile Telecommunication Company of Iran (“MCI”). During 2019, Telenor Global Services recorded net revenue of US$803,907.78 related to this interconnection agreement.
|
•
|
Telenor Norge AS, a Norwegian subsidiary, has roaming agreements with MCI, MTN Irancell and Rightel. During 2019, Telenor Norge AS recorded net revenue related to these roaming agreements of €2,047.25 to MCI, net expenses of €4,611.45 to MTN Irancell and net expenses of €1,056.33 to Rightel.
|
•
|
Telenor Sverige AB, a Swedish subsidiary, has roaming agreements with MCI and MTN Irancell and Rightel. During 2019, Telenor Sverige AB recorded net expense related to its roaming agreement with MCI of €875.91, net expenses related to its roaming agreement with MTN Irancell of €11,155.20 and net expenses related to its roaming agreement with Rightel €8,583.08.
|
•
|
Telenor Pakistan (Private) Ltd., a Pakistani subsidiary, has roaming agreements with MCI and MTN Irancell. During 2019, Telenor Pakistan (Private) Ltd. recorded net expenses of €95.75 related to the roaming agreement with MCI and net revenue of US$54,597.57 related to the roaming agreement with MTN Irancell.
|
•
|
Telenor A/S, a Danish subsidiary, has roaming agreements with MCI, MTN Irancell and Rightel. During 2019, Telenor A/S recorded net revenue related to its roaming agreement with MCI of €10.52, net expenses related to its roaming agreement with MTN Irancell of €6,758.26 and net expenses related to Rightel of €5,111.32.
|
•
|
Telenor d.o.o. Beograd Omladinskih brigada 90, a Serbian subsidiary, has a roaming agreement with MCI. During 2019, Telenor d.o.o. Beograd Omladinskih brigada 90 recorded net expenses of €649.10 related to this roaming agreement.
|
•
|
Telenor Hungary Plc, a Hungarian subsidiary, has a roaming agreement with MCI. During 2019, Telenor Hungary Plc, recorded a balance of €0 related to this roaming agreement.
|
•
|
Telenor Bulgaria EAD, a Bulgarian subsidiary, has a roaming agreement with MCI. During 2019, Telenor Bulgaria EAD recorded net revenues of €1462.48 related to this roaming agreement.
|
•
|
DiGi.Com Bhd, a Malaysian subsidiary, has a roaming agreement with MCI, MTN Irancell and Rightel. During 2019, DiGi.Com Bhd recorded net expenses of €5,620.14 related to MCI, net expenses of US$50.29 related to MTN Irancell and net revenues of US$9.85 related to Rightel.
|
•
|
Total Access Communications Plc, a Thai subsidiary, had no traffic with Iran operators during 2019.
|
|
Year ended
December 31, |
|||||
In millions of U.S. dollars
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|||
Consolidated income statement data:
|
|
|
|
|||
Service revenues
|
8,240
|
|
8,526
|
|
9,105
|
|
Sale of equipment and accessories
|
465
|
|
427
|
|
244
|
|
Other revenues / other income
|
158
|
|
133
|
|
125
|
|
Total operating revenues
|
8,863
|
|
9,086
|
|
9,474
|
|
|
|
|
|
|||
Service costs
|
(1,554
|
)
|
(1,701
|
)
|
(1,879
|
)
|
Cost of equipment and accessories
|
(479
|
)
|
(415
|
)
|
(260
|
)
|
Selling, general and administrative expenses
|
(2,965
|
)
|
(3,697
|
)
|
(3,748
|
)
|
Other operating gain / (loss)
|
350
|
|
—
|
|
—
|
|
Depreciation
|
(1,652
|
)
|
(1,339
|
)
|
(1,491
|
)
|
Amortization
|
(394
|
)
|
(495
|
)
|
(537
|
)
|
Impairment (loss) / reversal
|
(108
|
)
|
(858
|
)
|
(66
|
)
|
Gain / (loss) on disposal of non-current assets
|
(43
|
)
|
(57
|
)
|
(26
|
)
|
Gain / (loss) on disposal of subsidiaries
|
1
|
|
30
|
|
—
|
|
|
|
|
|
|||
Operating profit
|
2,019
|
|
554
|
|
1,467
|
|
|
|
|
|
|||
Finance costs
|
(892
|
)
|
(816
|
)
|
(935
|
)
|
Finance income
|
53
|
|
67
|
|
95
|
|
Other non-operating gain / (loss)
|
21
|
|
(68
|
)
|
(97
|
)
|
Share of profit / (loss) of joint ventures and associates
|
—
|
|
—
|
|
(22
|
)
|
Impairment of joint ventures and associates
|
—
|
|
—
|
|
(110
|
)
|
Net foreign exchange gain / (loss)
|
(20
|
)
|
15
|
|
(70
|
)
|
Profit / (loss) before tax
|
1,181
|
|
(248
|
)
|
328
|
|
|
|
|
|
|||
Income tax expense
|
(498
|
)
|
(369
|
)
|
(472
|
)
|
Profit / (loss) from continuing operations
|
683
|
|
(617
|
)
|
(144
|
)
|
|
|
|
|
|||
Profit / (loss) after tax from discontinued operations
|
—
|
|
(300
|
)
|
(390
|
)
|
Gain / (loss) on disposal of discontinued operations
|
—
|
|
1,279
|
|
—
|
|
Profit / (loss) for the period
|
683
|
|
362
|
|
(534
|
)
|
|
|
|
|
|||
Attributable to:
|
|
|
|
|||
The owners of the parent (continuing operations)
|
621
|
|
(397
|
)
|
(115
|
)
|
The owners of the parent (discontinued operations)
|
—
|
|
979
|
|
(390
|
)
|
Non-controlling interest
|
62
|
|
(220
|
)
|
(29
|
)
|
|
683
|
|
362
|
|
(534
|
)
|
|
Year ended December 31,
|
|||||
In millions of U.S. dollars, includes intersegment revenue
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|||
Our cornerstone
|
|
|
|
|||
|
|
|
|
|||
Russia
|
4,481
|
|
4,654
|
|
4,729
|
|
|
|
|
|
|||
Our growth engines
|
|
|
|
|||
|
|
|
|
|||
Pakistan
|
1,321
|
|
1,494
|
|
1,525
|
|
Ukraine
|
870
|
|
688
|
|
622
|
|
Kazakhstan
|
486
|
|
441
|
|
416
|
|
Uzbekistan
|
258
|
|
315
|
|
513
|
|
|
|
|
|
|||
Our frontier markets
|
|
|
|
|||
|
|
|
|
|||
Algeria
|
775
|
|
813
|
|
915
|
|
Bangladesh
|
537
|
|
521
|
|
574
|
|
Other and eliminations
|
135
|
|
160
|
|
180
|
|
|
|
|
|
|||
Total segments
|
8,863
|
|
9,086
|
|
9,474
|
|
|
|
Impact of
IFRS 16 |
|
Adjusted EBITDA
post-IFRS 16 |
|
|
Our cornerstone
|
|
|
|
|||
Russia
|
1,622
|
|
335
|
|
1,957
|
|
|
|
|
|
|||
Our growth engines
|
|
|
|
|||
Pakistan
|
622
|
|
47
|
|
669
|
|
Ukraine
|
548
|
|
24
|
|
572
|
|
Kazakhstan
|
253
|
|
17
|
|
270
|
|
Uzbekistan
|
132
|
|
4
|
|
136
|
|
|
|
|
|
|||
Our frontier markets
|
|
|
|
|||
Algeria
|
320
|
|
34
|
|
354
|
|
Bangladesh
|
182
|
|
40
|
|
222
|
|
Other and eliminations
|
302
|
|
10
|
|
312
|
|
|
|
|
|
|||
HQ
|
(277
|
)
|
—
|
|
(277
|
)
|
|
|
|
|
|||
Total segments
|
3,704
|
|
511
|
|
4,215
|
|
|
Year ended December 31,
|
|||||||||
In millions of U.S. dollars (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
4,481
|
|
4,654
|
|
4,729
|
|
-4
|
%
|
-2
|
%
|
Mobile service revenue
|
3,485
|
|
3,679
|
|
3,843
|
|
-5
|
%
|
-4
|
%
|
- of which fixed-mobile convergence (“FMC”)
|
151
|
|
126
|
|
87
|
|
20
|
%
|
46
|
%
|
- of which mobile data
|
972
|
|
996
|
|
1012
|
|
-2
|
%
|
-2
|
%
|
Fixed-line service revenue
|
539
|
|
566
|
|
673
|
|
-5
|
%
|
-16
|
%
|
Sales of equipment, accessories and other
|
457
|
|
410
|
|
213
|
|
12
|
%
|
92
|
%
|
Operating expenses
|
2,523
|
|
2,977
|
|
2,941
|
|
-15
|
%
|
1
|
%
|
Adjusted EBITDA
|
1,957
|
|
1,677
|
|
1,788
|
|
17
|
%
|
-6
|
%
|
Adjusted EBITDA margin
|
43.7
|
%
|
36.0
|
%
|
37.8
|
%
|
7.6pp
|
|
-1.8pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of RUB (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
289,875
|
|
291,539
|
|
275,887
|
|
-1
|
%
|
6
|
%
|
Mobile service revenue
|
225,555
|
|
230,123
|
|
224,186
|
|
-2
|
%
|
3
|
%
|
- of which FMC
|
9,788
|
|
7,942
|
|
5,064
|
|
23
|
%
|
57
|
%
|
- of which mobile data
|
62,894
|
|
62,259
|
|
59,041
|
|
1
|
%
|
5
|
%
|
Fixed-line service revenue
|
34,850
|
|
35,295
|
|
39,271
|
|
-1
|
%
|
-10
|
%
|
Sales of equipment, accessories and other
|
29,470
|
|
26,121
|
|
12,430
|
|
13
|
%
|
110
|
%
|
Operating expenses
|
163,177
|
|
186,822
|
|
171,545
|
|
-13
|
%
|
9
|
%
|
Adjusted EBITDA
|
126,698
|
|
104,717
|
|
104,342
|
|
21
|
%
|
0
|
%
|
Adjusted EBITDA margin
|
43.7
|
%
|
35.9
|
%
|
37.8
|
%
|
7.8pp
|
|
-1.9pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
||||||
|
2019
|
2018
|
2017
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
||
Mobile
|
|
|
|
|
|
||
Customers in millions
|
54.6
|
55.3
|
58.2
|
-1
|
%
|
-5
|
%
|
Mobile data customers in millions
|
35.5
|
36.8
|
38.4
|
-3
|
%
|
-4
|
%
|
ARPU in US$
|
5.3
|
5.4
|
5.5
|
-2
|
%
|
-2
|
%
|
ARPU in RUB
|
340
|
336
|
319
|
1
|
%
|
5
|
%
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of U.S. dollars (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
1,321
|
|
1,494
|
|
1,525
|
|
-12
|
%
|
-2
|
%
|
Mobile service revenue
|
1,228
|
|
1,391
|
|
1,418
|
|
-12
|
%
|
-2
|
%
|
- of which mobile data
|
370
|
|
311
|
|
225
|
|
19
|
%
|
38
|
%
|
Sales of equipment, accessories and other
|
92
|
|
103
|
|
107
|
|
-10
|
%
|
-4
|
%
|
Operating expenses
|
652
|
|
780
|
|
822
|
|
-17
|
%
|
-5
|
%
|
Adjusted EBITDA
|
669
|
|
714
|
|
703
|
|
-6
|
%
|
2
|
%
|
Adjusted EBITDA margin
|
50.7
|
%
|
47.8
|
%
|
46.1
|
%
|
2.9pp
|
|
1.7pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of PKR (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
197,605
|
|
181,722
|
|
160,679
|
|
9
|
%
|
13
|
%
|
Mobile service revenue
|
183,760
|
|
169,277
|
|
149,393
|
|
9
|
%
|
13
|
%
|
- of which mobile data
|
55,517
|
|
38,230
|
|
23,743
|
|
45
|
%
|
61
|
%
|
Sales of equipment, accessories and other
|
13,844
|
|
12,445
|
|
11,286
|
|
11
|
%
|
10
|
%
|
Operating expenses
|
97,531
|
|
94,911
|
|
86,583
|
|
3
|
%
|
10
|
%
|
Adjusted EBITDA
|
100,074
|
|
86,811
|
|
74,096
|
|
15
|
%
|
17
|
%
|
Adjusted EBITDA margin
|
50.6
|
%
|
47.8
|
%
|
46.1
|
%
|
2.9pp
|
|
1.7pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
||||||
|
2019
|
2018
|
2017
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
||
Mobile
|
|
|
|
|
|
||
Customers in millions
|
60.5
|
56.2
|
53.6
|
8
|
%
|
5
|
%
|
Mobile data customers in millions
|
38.8
|
33.0
|
28.5
|
18
|
%
|
16
|
%
|
ARPU in US$
|
1.7
|
2.1
|
2.2
|
-17
|
%
|
-7
|
%
|
ARPU in PKR
|
261
|
254
|
236
|
3
|
%
|
8
|
%
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of U.S. dollars (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
775
|
|
813
|
|
915
|
|
-5
|
%
|
-11
|
%
|
Mobile service revenue
|
769
|
|
801
|
|
898
|
|
-4
|
%
|
-11
|
%
|
- of which mobile data
|
232
|
|
188
|
|
113
|
|
23
|
%
|
66
|
%
|
Sales of equipment, accessories and other
|
5
|
|
12
|
|
17
|
|
-54
|
%
|
-31
|
%
|
Operating expenses
|
421
|
|
449
|
|
490
|
|
-6
|
%
|
-8
|
%
|
Adjusted EBITDA
|
354
|
|
363
|
|
426
|
|
-3
|
%
|
-15
|
%
|
Adjusted EBITDA margin
|
45.7
|
%
|
44.7
|
%
|
46.5
|
%
|
1.0pp
|
|
-1.8pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of DZD (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
92,513
|
|
94,773
|
|
101,457
|
|
-2
|
%
|
-7
|
%
|
Mobile service revenue
|
91,870
|
|
93,409
|
|
99,588
|
|
-2
|
%
|
-6
|
%
|
- of which mobile data
|
27,665
|
|
21,978
|
|
12,586
|
|
26
|
%
|
75
|
%
|
Sales of equipment, accessories and other
|
643
|
|
1,364
|
|
1,869
|
|
-53
|
%
|
-27
|
%
|
Operating expenses
|
50,241
|
|
52,376
|
|
54,301
|
|
-4
|
%
|
-4
|
%
|
Adjusted EBITDA
|
42,272
|
|
42,398
|
|
47,156
|
|
0
|
%
|
-10
|
%
|
Adjusted EBITDA margin
|
45.7
|
%
|
44.7
|
%
|
46.5
|
%
|
1.0pp
|
|
-1.7pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
||||||
|
2019
|
2018
|
2017
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
||
Mobile
|
|
|
|
|
|
||
Customers in millions
|
14.6
|
15.8
|
15.0
|
-8
|
%
|
6
|
%
|
Mobile data customers in millions
|
8.8
|
9.2
|
7.2
|
-5
|
%
|
28
|
%
|
ARPU in US$
|
4.2
|
4.3
|
4.8
|
-3
|
%
|
-10
|
%
|
ARPU in DZD
|
501
|
504
|
529
|
-1
|
%
|
-5
|
%
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of U.S. dollars (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
537
|
|
521
|
|
574
|
|
3
|
%
|
-9
|
%
|
Mobile service revenue
|
525
|
|
504
|
|
557
|
|
4
|
%
|
-10
|
%
|
- of which mobile data
|
109
|
|
87
|
|
78
|
|
26
|
%
|
11
|
%
|
Sales of equipment, accessories and other
|
11
|
|
17
|
|
17
|
|
-35
|
%
|
0
|
%
|
Operating expenses
|
314
|
|
338
|
|
341
|
|
-7
|
%
|
-1
|
%
|
Adjusted EBITDA
|
222
|
|
183
|
|
233
|
|
21
|
%
|
-21
|
%
|
Adjusted EBITDA margin
|
41.4
|
%
|
35.2
|
%
|
40.6
|
%
|
6.3pp
|
|
-5.4pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of BDT (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
45,284
|
|
43,653
|
|
46,471
|
|
4
|
%
|
-6
|
%
|
Mobile service revenue
|
44,332
|
|
42,211
|
|
45,072
|
|
5
|
%
|
-6
|
%
|
- of which mobile data
|
9,194
|
|
7,250
|
|
6,308
|
|
27
|
%
|
15
|
%
|
Sales of equipment, accessories and other
|
952
|
|
1,442
|
|
1,399
|
|
-34
|
%
|
3
|
%
|
Operating expenses
|
26,522
|
|
28,306
|
|
27,630
|
|
-6
|
%
|
3
|
%
|
Adjusted EBITDA
|
18,762
|
|
15,347
|
|
18,841
|
|
22
|
%
|
-19
|
%
|
Adjusted EBITDA margin
|
41.4
|
%
|
35.2
|
%
|
40.5
|
%
|
6.3pp
|
|
-5.4pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
||||||
|
2019
|
2018
|
2017
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
||
Mobile
|
|
|
|
|
|
||
Customers in millions
|
33.6
|
32.3
|
31.3
|
4
|
%
|
3
|
%
|
Mobile data customers in millions
|
21.5
|
19.6
|
16.9
|
10
|
%
|
16
|
%
|
ARPU in US$
|
1.3
|
1.3
|
1.5
|
1
|
%
|
-12
|
%
|
ARPU in BDT
|
112
|
110
|
121
|
1
|
%
|
-9
|
%
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of U.S. dollars (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
870
|
|
688
|
|
622
|
|
26
|
%
|
11
|
%
|
Mobile service revenue
|
812
|
|
641
|
|
577
|
|
27
|
%
|
11
|
%
|
- of which mobile data
|
421
|
|
263
|
|
154
|
|
60
|
%
|
71
|
%
|
Fixed-line service revenue
|
52
|
|
44
|
|
43
|
|
18
|
%
|
4
|
%
|
Sales of equipment, accessories and other
|
5
|
|
3
|
|
3
|
|
59
|
%
|
25
|
%
|
Operating expenses
|
298
|
|
301
|
|
276
|
|
-1
|
%
|
9
|
%
|
Adjusted EBITDA
|
572
|
|
387
|
|
347
|
|
48
|
%
|
12
|
%
|
Adjusted EBITDA margin
|
65.7
|
%
|
56.3
|
%
|
55.7
|
%
|
9.5pp
|
|
0.5pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of UAH (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
22,392
|
|
18,719
|
|
16,542
|
|
20
|
%
|
13
|
%
|
Mobile service revenue
|
20,903
|
|
17,421
|
|
15,338
|
|
20
|
%
|
14
|
%
|
- of which mobile data
|
10,847
|
|
7,177
|
|
4,103
|
|
51
|
%
|
75
|
%
|
Fixed-line service revenue
|
1,350
|
|
1,206
|
|
1,132
|
|
12
|
%
|
7
|
%
|
Sales of equipment, accessories and other
|
139
|
|
93
|
|
72
|
|
50
|
%
|
28
|
%
|
Operating expenses
|
7,709
|
|
8,190
|
|
7,321
|
|
-6
|
%
|
12
|
%
|
Adjusted EBITDA
|
14,683
|
|
10,529
|
|
9,221
|
|
39
|
%
|
14
|
%
|
Adjusted EBITDA margin
|
65.6
|
%
|
56.2
|
%
|
55.7
|
%
|
9.3pp
|
|
0.5pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
||||||
|
2019
|
2018
|
2017
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
||
Mobile
|
|
|
|
|
|
||
Customers in millions
|
26.2
|
26.4
|
26.5
|
-1
|
%
|
-1
|
%
|
Mobile data customers in millions
|
16.9
|
14.8
|
12.5
|
15
|
%
|
18
|
%
|
ARPU in US$
|
2.6
|
2.0
|
1.8
|
28
|
%
|
11
|
%
|
ARPU in UAH
|
66
|
54
|
48
|
21
|
%
|
13
|
%
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of U.S. dollars (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
486
|
|
441
|
|
416
|
|
10
|
%
|
6
|
%
|
Mobile service revenue
|
378
|
|
363
|
|
339
|
|
4
|
%
|
7
|
%
|
- of which mobile data
|
157
|
|
115
|
|
97
|
|
36
|
%
|
19
|
%
|
Fixed-line service revenue
|
66
|
|
73
|
|
75
|
|
-9
|
%
|
-3
|
%
|
Sales of equipment, accessories and other
|
41
|
|
4
|
|
1
|
|
859
|
%
|
216
|
%
|
Operating expenses
|
216
|
|
234
|
|
236
|
|
-8
|
%
|
-1
|
%
|
Adjusted EBITDA
|
270
|
|
206
|
|
180
|
|
31
|
%
|
15
|
%
|
Adjusted EBITDA margin
|
55.6
|
%
|
46.8
|
%
|
43.2
|
%
|
8.9pp
|
|
3.6pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of KZT (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
186,039
|
|
151,798
|
|
135,613
|
|
23
|
%
|
12
|
%
|
Mobile service revenue
|
144,925
|
|
125,125
|
|
110,621
|
|
16
|
%
|
13
|
%
|
- of which mobile data
|
59,986
|
|
39,789
|
|
31,650
|
|
51
|
%
|
26
|
%
|
Fixed-line service revenue
|
25,423
|
|
25,228
|
|
24,547
|
|
1
|
%
|
3
|
%
|
Sales of equipment, accessories and other
|
15,691
|
|
1,446
|
|
446
|
|
985
|
%
|
225
|
%
|
Operating expenses
|
82,586
|
|
80,679
|
|
77,067
|
|
2
|
%
|
5
|
%
|
Adjusted EBITDA
|
103,454
|
|
71,119
|
|
58,546
|
|
46
|
%
|
22
|
%
|
Adjusted EBITDA margin
|
55.6
|
%
|
46.9
|
%
|
43.2
|
%
|
8.8pp
|
|
3.7pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
||||||
|
2019
|
2018
|
2017
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
||
Mobile
|
|
|
|
|
|
||
Customers in millions
|
10.2
|
9.9
|
9.8
|
3
|
%
|
2
|
%
|
Mobile data customers in millions
|
6.9
|
6.3
|
5.7
|
10
|
%
|
11
|
%
|
ARPU in US$
|
3.1
|
3.0
|
3.0
|
2
|
%
|
2
|
%
|
ARPU in KZT
|
1,192
|
1,051
|
972
|
14
|
%
|
8
|
%
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of U.S. dollars (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
258
|
|
315
|
|
513
|
|
-18
|
%
|
-39
|
%
|
Mobile service revenue
|
255
|
|
312
|
|
509
|
|
-18
|
%
|
-39
|
%
|
- of which mobile data
|
120
|
|
108
|
|
128
|
|
11
|
%
|
-16
|
%
|
Fixed-line service revenue
|
2
|
|
2
|
|
3
|
|
-30
|
%
|
-35
|
%
|
Sales of equipment, accessories and other
|
1
|
|
0
|
|
1
|
|
143
|
%
|
-22
|
%
|
Operating expenses
|
122
|
|
178
|
|
252
|
|
-32
|
%
|
-29
|
%
|
Adjusted EBITDA
|
136
|
|
136
|
|
261
|
|
0
|
%
|
-48
|
%
|
Adjusted EBITDA margin
|
52.8
|
%
|
43.3
|
%
|
50.9
|
%
|
9.5pp
|
|
-7.6pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
|||||||||
In millions of UZS (except as indicated)
|
2019
|
|
2018
|
|
2017
|
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
|||||
Total operating revenue
|
2,275,256
|
|
2,537,768
|
|
2,341,828
|
|
-10
|
%
|
8
|
%
|
Mobile service revenue
|
2,251,950
|
|
2,516,756
|
|
2,323,177
|
|
-11
|
%
|
8
|
%
|
- of which mobile data
|
1,059,616
|
|
871,670
|
|
585,060
|
|
22
|
%
|
49
|
%
|
Fixed-line service revenue
|
13,229
|
|
17,390
|
|
15,036
|
|
-24
|
%
|
16
|
%
|
Sales of equipment, accessories and other
|
10,077
|
|
3,622
|
|
3615
|
|
178
|
%
|
0
|
%
|
Operating expenses
|
1,071,233
|
|
1,439,916
|
|
1,181,702
|
|
-26
|
%
|
22
|
%
|
Adjusted EBITDA
|
1,204,023
|
|
1,097,852
|
|
1,160,126
|
|
10
|
%
|
-5
|
%
|
Adjusted EBITDA margin
|
52.9
|
%
|
43.3
|
%
|
49.5
|
%
|
9.7pp
|
|
-6.3pp
|
|
|
|
|
|
|
|
|
Year ended December 31,
|
||||||
|
2019
|
2018
|
2017
|
‘18-19
% change |
|
‘17-18
% change |
|
|
|
|
|
|
|
||
Mobile
|
|
|
|
|
|
||
Customers in millions
|
8.1
|
9.1
|
9.7
|
-11
|
%
|
-6
|
%
|
Mobile data customers in millions
|
5.2
|
5.5
|
5.0
|
-7
|
%
|
10
|
%
|
ARPU in US$
|
2.4
|
2.8
|
4.4
|
-12
|
%
|
-38
|
%
|
ARPU in UZS
|
21,390
|
22,177
|
20,126
|
-4
|
%
|
10
|
%
|
|
|
|
|
|
|
(In millions of U.S. dollars)
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|||
Net cash flows from operating activities
|
2,949
|
|
2,515
|
|
2,475
|
|
|
|
|
|
|||
Net cash flows from / (used in) investing activities
|
(1,888
|
)
|
1,997
|
|
(3,016
|
)
|
|
|
|
|
|||
Net cash flows from / (used in) financing activities
|
(1,639
|
)
|
(3,916
|
)
|
(733
|
)
|
|
|
|
|
|||
Net increase / (decrease) in cash and cash equivalents
|
(578
|
)
|
596
|
|
(1,274
|
)
|
Net foreign exchange difference
|
(9
|
)
|
(119
|
)
|
(354
|
)
|
Cash and cash equivalents at beginning of period
|
1,791
|
|
1,314
|
|
2,942
|
|
|
|
|
|
|||
Cash and cash equivalents at end of period, net of overdraft
|
1,204
|
|
1,791
|
|
1,314
|
|
Entity
|
Type of debt/ original lenders
|
Interest rate
|
Debt currency
|
Outstanding debt (mln)
|
|
Outstanding debt
(US$ mln) |
|
Maturity
date |
VEON Holdings B.V.
|
Loan from SberBank
|
10.0000%
|
RUB
|
95,000
|
|
1,535
|
|
19.05.2022
|
VEON Holdings B.V.
|
Loan from Alfa Bank
|
8.8000%
|
RUB
|
17,500
|
|
283
|
|
30.08.2022
|
VEON Holdings B.V.
|
Loan from VTB
|
8.7500%
|
RUB
|
30,000
|
|
485
|
|
30.08.2022
|
VEON Holdings B.V.
|
Notes
|
3.9500%
|
USD
|
600
|
|
600
|
|
16.06.2021
|
VEON Holdings B.V.
|
Notes
|
7.5043%
|
USD
|
417
|
|
417
|
|
01.03.2022
|
VEON Holdings B.V.
|
Notes
|
5.9500%
|
USD
|
529
|
|
529
|
|
13.02.2023
|
VEON Holdings B.V.
|
Notes
|
4.9500%
|
USD
|
533
|
|
533
|
|
17.06.2024
|
VEON Holdings B.V.
|
Notes
|
4.0000%
|
USD
|
700
|
|
700
|
|
09.04.2025
|
VEON Holdings B.V.
|
Cash-pool overdrawn accounts
|
|
|
|
1
|
|
|
|
TOTAL VEON Holdings B.V.
|
|
|
|
|
5,083
|
|
|
|
|
|
|
|
|
|
|
||
GTH Finance B.V.
|
Notes
|
6.2500%
|
USD
|
500
|
|
500
|
|
26.04.2020
|
GTH Finance B.V.
|
Notes
|
7.2500%
|
USD
|
700
|
|
700
|
|
26.04.2023
|
TOTAL GTH Finance B.V.
|
|
|
|
|
1,200
|
|
|
|
|
|
|
|
|
|
|
||
PJSC VimpelCom
|
Loan from VIP Finance Ireland (funded by the issuance of loan participation notes by VIP Finance Ireland)
|
7.7480%
|
USD
|
262
|
|
262
|
|
02.02.2021
|
PJSC VimpelCom
|
Other
|
|
|
|
17
|
|
|
|
TOTAL PJSC VimpelCom
|
|
|
|
|
279
|
|
|
|
|
|
|
|
|
|
|
||
PMCL
|
Loan from Habib Bank Limited
|
6 months KIBOR + 0.90%
|
PKR
|
1,333
|
|
9
|
|
15.12.2020
|
PMCL
|
Loan from ING Bank N.V.
|
6 months LIBOR + 1.9%
|
USD
|
75
|
|
75
|
|
15.12.2020
|
PMCL
|
Loan from MCB Bank Limited
|
6 months KIBOR + 0.8%
|
PKR
|
5,333
|
|
34
|
|
15.12.2020
|
PMCL
|
Loan from Habib Bank Limited
|
6 months KIBOR + 0.35%
|
PKR
|
8,333
|
|
54
|
|
15.06.2022
|
PMCL
|
Syndicated Loan Facility
|
6 months KIBOR
|
PKR
|
3,879
|
|
25
|
|
15.12.2023
|
PMCL
|
Syndicated Loan Facility
|
6 months KIBOR
|
PKR
|
2,413
|
|
16
|
|
15.12.2023
|
PMCL
|
Syndicated Loan Facility
|
6 months KIBOR + 0.35%
|
PKR
|
21,396
|
|
138
|
|
15.06.2022
|
PMCL
|
Syndicated Loan Facility
|
6 months KIBOR + 0.75%
|
PKR
|
15,885
|
|
102
|
|
02.09.2026
|
PMCL
|
Islamic Financing Facility
|
6 months KIBOR + 0.75%
|
PKR
|
2,963
|
|
19
|
|
02.09.2026
|
PMCL
|
Other
|
|
|
|
22
|
|
|
|
TOTAL Pakistan Mobile Communications Limited
|
|
|
|
494
|
|
|
||
|
|
|
|
|
|
|
||
Banglalink
|
Syndicated Loan Facility
|
3 months LIBOR + 2.5%
|
USD
|
300
|
|
300
|
|
25.04.2020
|
Banglalink
|
Syndicated Loan Facility
|
Average bank deposit rate + 4.25%
|
BDT
|
8,135
|
|
96
|
|
24.12.2022
|
Banglalink
|
Syndicated Loan Facility
|
Average bank deposit rate + 3.0%
|
BDT
|
1,744
|
|
20
|
|
24.12.2020
|
TOTAL Banglalink Digital Communications Ltd.
|
|
|
|
416
|
|
|
||
|
|
|
|
|
|
|
||
Other entities
|
Cash-pool overdrawn accounts and other
|
|
|
|
47
|
|
|
|
Total VEON consolidated
|
|
|
|
|
7,519
|
|
|
|
Less than 1 year
|
|
1-3
years |
|
3-5 years
|
|
More than 5 years
|
|
Total
|
|
|
|
|
|
|
|
|||||
Bank loans and bonds
|
2,100
|
|
3,909
|
|
2,009
|
|
794
|
|
8,812
|
|
Lease liabilities
|
581
|
|
920
|
|
728
|
|
420
|
|
2,649
|
|
Purchase obligations
|
677
|
|
19
|
|
—
|
|
—
|
|
696
|
|
|
|
|
|
|
|
|||||
Total financial liabilities, net of derivative assets
|
3,358
|
|
4,848
|
|
2,737
|
|
1,214
|
|
12,157
|
|
Name
|
Age
|
Position
|
Ursula Burns
|
61
|
Chairman of Board of Directors
|
Guillaume Bacuvier
|
47
|
Director
|
Osama Bedier
|
44
|
Director
|
Mikhail M. Fridman
|
55
|
Director
|
Gennady Gazin
|
55
|
Director
|
Andrei Gusev
|
47
|
Director
|
Gunnar Holt
|
65
|
Director
|
Sir Julian Horn-Smith
|
71
|
Director
|
Robert Jan van de Kraats
|
59
|
Director
|
Guy Laurence
|
58
|
Director
|
Alexander Pertsovsky
|
51
|
Director
|
(1)
|
A breakdown of employees by category of activity is not available for our HQ segment and our “Others” category.
|
Name
|
Number of VEON Ltd. Common Shares
|
Percent of VEON Ltd. Issued and Outstanding Shares
|
L1T VIP Holdings S.à r.l.(1)
|
840,625,001
|
47.85
|
Stichting Administratiekantoor Mobile Telecommunications Investor (2)
|
145,947,562
|
8.31
|
(2)
|
As reported on Schedule 13G, filed on April 1, 2016, by Stichting with the SEC, Stichting is the direct beneficial owner of 145,947,562 of VEON Ltd.’s common shares. LetterOne is the holder of the depositary receipts issued by Stichting and is therefore entitled to the economic benefits (dividend payments, other distributions and sale proceeds) of such depositary receipts and, indirectly, of the 145,947,562 common shares represented by the depositary receipts. According to the conditions of administration entered into between Stichting and LetterOne (“Conditions of Administration”) in connection with the transfer of 145,947,562 ADSs from LetterOne to Stichting on March 29, 2016, Stichting has the power to vote and direct the voting of, and the power to dispose and direct the disposition of, the ADSs, in its sole discretion, in accordance with the Conditions of Administration and Stichting’s articles of association. Stichting is a foundation incorporated under the laws of the Netherlands. The common shares held by Stichting represent approximately 8.31% of VEON Ltd.’s issued and outstanding shares.
|
•
|
participate in shareholder meetings;
|
•
|
have one vote on all issues voted upon at a shareholder meeting, except for the purposes of cumulative voting for the election of the board of directors, in which case each common share shall have the same number of votes as the total number of members to be elected to the board of directors and all such votes may be cast for a single candidate or may be distributed between or among two or more candidates;
|
•
|
receive dividends approved by the board of directors (any dividend or other moneys payable in respect of a share which has remained unclaimed for six years from the date when it became due for payment shall, if the board of directors so resolves, be forfeited and cease to remain owing by VEON Ltd.);
|
•
|
in the event of our liquidation, receive a pro rata share of our surplus assets; and
|
•
|
exercise any other rights of a common shareholder set forth in our bye-laws and Bermuda law.
|
•
|
delivering such notice to the shareholder in person;
|
•
|
sending such notice by letter or courier to the shareholder’s address as stated in the register of shareholders;
|
•
|
transmitting such notice by electronic means in accordance with directions given by the shareholder; or
|
•
|
accessing such notice on our website.
|
•
|
it is proposed by or at the direction of the board of directors;
|
•
|
it is proposed at the direction of a court;
|
•
|
it is proposed on the requisition in writing of such number of shareholders as is prescribed by, and is made in accordance with, the relevant provisions of the Companies Act or our bye-laws; or
|
•
|
the chairman of the meeting in his absolute discretion decides that the resolution may properly be regarded as within the scope of the meeting.
|
•
|
any sale of all or substantially all of our assets;
|
•
|
the appointment of an auditor; and
|
•
|
removal of directors.
|
•
|
whitewash procedure for mandatory offers, which requires the affirmative vote of a majority of the shareholders voting in person or by proxy at a general meeting, excluding the vote of the shareholder or shareholders in question and their affiliates;
|
•
|
voting for directors, which requires directors to be elected by cumulative voting at each annual general meeting;
|
•
|
changes to our bye-laws, which require a resolution to be passed by shareholders representing not less than 75.0% of the total voting rights of the shareholders who vote in person or by proxy on the resolution;
|
•
|
any merger, consolidation, amalgamation, conversion, reorganization, scheme of arrangement, dissolution or liquidation, which requires a resolution to be passed by shareholders representing not less than 75.0% of the total voting rights of the shareholders who vote in person or by proxy on the resolution;
|
•
|
loans to any director, which require a resolution to be passed by shareholders representing not less than 90.0% of the total voting rights of the shareholders who vote in person or by proxy on the resolution; and
|
•
|
the discontinuation of VEON Ltd. to a jurisdiction outside Bermuda, which requires a resolution to be passed by shareholders representing not less than 75.0% of the total voting rights of the shareholders who vote in person or by proxy on the resolution.
|
•
|
banks and certain other financial institutions;
|
•
|
regulated investment companies;
|
•
|
real estate investment trusts;
|
•
|
insurance companies;
|
•
|
broker-dealers;
|
•
|
traders that elect to mark to market;
|
•
|
tax-exempt entities;
|
•
|
persons liable for alternative minimum tax or the Medicare contribution tax on net investment income;
|
•
|
certain U.S. expatriates;
|
•
|
persons holding our ADSs or common shares as part of a straddle, hedging, constructive sale, conversion or integrated transaction;
|
•
|
persons that actually or constructively own, or are treated as owning, 10% or more of our stock by vote or value;
|
•
|
persons that are resident or ordinarily resident in or have a permanent establishment in a jurisdiction outside the United States;
|
•
|
persons subject to special tax accounting rules as a result of any item of gross income with respect to our ADSs or common shares being taken into account in an applicable financial statement;
|
•
|
persons who acquired ADSs or common shares pursuant to the exercise of any employee share option or otherwise as compensation; or
|
•
|
persons holding ADSs or common shares through partnerships or other pass-through entities.
|
•
|
an individual who is a citizen or resident of the United States;
|
•
|
a corporation (or other entity taxable as a corporation) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;
|
•
|
an estate whose income is subject to U.S. federal income taxation regardless of its source; or
|
•
|
a trust that (1) is subject to the supervision of a court within the United States and the control of one or more U.S. persons or (2) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.
|
•
|
may be deemed an owner of ADSs or common shares for Dutch tax purposes pursuant to specific statutory attribution rules in Dutch tax law;
|
•
|
is, although in principle subject to Dutch corporation tax, in whole or in part, specifically exempt from that tax in connection with income from ADSs or common shares;
|
•
|
is an investment institution as defined in the Dutch Corporation Tax Act 1969;
|
•
|
owns ADSs or common shares in connection with a membership of a management board or a supervisory board, an employment relationship, a deemed employment relationship or management role;
|
•
|
has a substantial interest in VEON Ltd. or a deemed substantial interest in VEON Ltd. for Dutch tax purposes. Generally, you hold a substantial interest if (a) you - either alone or, in the case of an individual, together with your partner or any of your relatives by blood or by marriage in the direct line (including foster-children) or of those of your partner for Dutch tax purposes - own or are deemed to own, directly or indirectly, ADSs or common shares representing 5.0% or more of the shares or of any class of shares of VEON Ltd., or rights to acquire, directly or indirectly, ADSs or common shares representing such an interest in the shares of VEON Ltd. or profit participating certificates relating to 5.0% or more of the annual profits or to 5.0% or more of the liquidation proceeds of VEON Ltd., or (b) your ADSs or common shares, rights to acquire ADSs or common shares or profit participating certificates in VEON Ltd. are held by you following the application of a non-recognition provision; or
|
•
|
is for Dutch tax purposes taxable as a corporate entity and resident of Aruba, Curacao or Saint Martin.
|
•
|
you derive profits from an enterprise, whether as an entrepreneur or pursuant to a co-entitlement to the net value of such enterprise, other than as a shareholder, and such enterprise is carried on, in whole or in part, through a permanent establishment or a permanent representative in the Netherlands, and your ADSs or common shares are attributable to such permanent establishment or permanent representative; or
|
•
|
you derive benefits or are deemed to derive benefits from or in connection with ADSs or common shares that are taxable as benefits from miscellaneous activities performed in the Netherlands.
|
i.
|
you derive profits from an enterprise directly which is carried on, in whole or in part, through a permanent establishment or a permanent representative in the Netherlands, and to which permanent establishment or permanent representative your ADSs or common shares are attributable; or
|
ii.
|
you derive profits pursuant to a co-entitlement to the net value of an enterprise which is managed in the Netherlands, other than as a holder of securities, and to which enterprise your ADSs or common shares are attributable.
|
•
|
distributions in cash or in kind, deemed and constructive distributions and repayments of capital not recognized as paid-in for Dutch dividend withholding tax purposes;
|
•
|
liquidation proceeds and proceeds of repurchase or redemption of ADSs or common shares in excess of the average capital recognized as paid-in for Dutch dividend withholding tax purposes;
|
•
|
the par value of ADSs or common shares issued by VEON Ltd.to a holder of its ADSs or common shares or an increase of the par value of ADSs or common shares, as the case may be, to the extent that it does not appear that a contribution, recognized for Dutch dividend withholding tax purposes, has been made or will be made; and
|
•
|
partial repayment of capital, recognized as paid-in for Dutch dividend withholding tax purposes, if and to the extent that there are net profits, unless (a) VEON Ltd.’s shareholders have resolved in advance to make such repayment and (b) the par value of the ADSs or common shares concerned has been reduced by an equal amount by way of an amendment to its memorandum of association.
|
|
Aggregate nominal amount of bank loans and bonds denominated in foreign currency outstanding as of December 31,
|
Fair Value as of December 31,
|
||||
|
2019
|
2020
|
2021
|
2022
|
2023
|
2019
|
Total debt:
|
|
|
|
|
|
|
Fixed Rate (in US$ millions)
|
262
|
262
|
—
|
—
|
—
|
287
|
Average interest rate
|
7.75%
|
7.75%
|
—
|
—
|
—
|
|
Variable Rate (in US$ millions)
|
375
|
—
|
—
|
—
|
—
|
379
|
Average interest rate
|
4.31%
|
—
|
—
|
—
|
—
|
|
TOTAL
|
637
|
262
|
—
|
—
|
—
|
667
|
For:
|
Persons depositing or withdrawing shares or ADS holders must pay to the depositary:
|
Issuance of ADSs, including issuances resulting from a distribution of our shares or rights or other property
|
US$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)
|
Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates
|
US$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)
|
Any cash distribution to ADS holders
|
US$0.05 (or less) per ADS
|
Depositary service
|
US$0.05 (or less) per ADS per calendar year
|
Distribution of securities distributed to holders of deposited securities that are distributed to ADS holders
|
A fee equivalent to the fee that would be payable if securities distributed had been shares and the shares had been deposited for ADS issuance
|
Transfer and registration of shares on our share register to or from the name of the depositary or its agent when a shareholder deposits or withdraws shares
|
Registration or transfer fees
|
Cable, telex and facsimile transmissions (when expressly provided in the deposit agreement)
|
Expenses of the depositary
|
Converting foreign currency to U.S. dollars
|
Expenses of the depositary
|
Taxes and other governmental charges the depositary or the custodian have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes
|
As necessary
|
Any charges incurred by the ADS depositary or its agents for servicing the deposited securities
|
As necessary
|
Incorporated by Reference
|
||||||
Number
|
Description of Exhibit
|
Form
|
File No.
|
Exhibit
|
Date
|
Filed Herewith
|
1.1
|
|
20-F
|
001-34694
|
1.1
|
3/14/2019
|
|
1.2
|
20-F
|
001-34694
|
1.2
|
4/03/2017
|
|
|
2.1
|
F-6
|
333-164781
|
1
|
12/22/2017
|
|
|
2.2
|
F-4
|
333-164770
|
2.3
|
2/8/2010
|
|
|
2.3
|
13D
|
005-85442
|
99.1
|
12/5/2013
|
|
|
2.4
|
6-K
|
001-34694
|
4.1
|
9/26/2016
|
|
|
2.5
|
20-F
|
001-34694
|
2.6
|
4/03/2017
|
|
|
2.6
|
|
|
|
|
*
|
|
4.1
|
20-F
|
001-34694
|
4.3
|
6/30/2011
|
|
|
4.2
|
S-8
|
333-180368
|
4.3
|
3/27/2012
|
|
|
4.3
|
S-8
|
333-183294
|
4.3
|
8/14/2012
|
|
|
4.4
|
S-8
|
333-166315
|
4.3
|
4/27/2010
|
|
|
4.5
|
S-8
|
333-166315
|
4.4
|
4/27/2010
|
|
|
8
|
|
|
|
|
*
|
|
12.1
|
|
|
|
|
*
|
|
12.2
|
|
|
|
|
*
|
|
12.3
|
|
|
|
|
*
|
|
13.1
|
|
|
|
|
*
|
|
15.1
|
|
|
|
|
*
|
|
99.1
|
|
|
|
|
*
|
|
99.2
|
|
|
|
|
*
|
|
101.INS
|
XBRL Instance Document(1)
|
|
|
|
|
*
|
101.SCH
|
XBRL Taxonomy Extension Schema(1)
|
|
|
|
|
*
|
101.CAL
|
XBRL Taxonomy Extension Scheme Calculation Linkbase(1)
|
|
|
|
|
*
|
101.DEF
|
XBRL Taxonomy Extension Scheme Definition Linkbase(1)
|
|
|
|
|
*
|
101.LAB
|
XBRL Taxonomy Extension Scheme Label Linkbase(1)
|
|
|
|
|
*
|
101.PRE
|
XBRL Taxonomy Extension Scheme Presentation Linkbase(1)
|
|
|
|
|
*
|
(1)
|
The following materials from the our Annual Report on Form 20-F for the year ended December 31, 2019, formatted in eXtensible Business Reporting Language (XBRL): (i) Consolidated income statement for the year ended December 31, 2019, 2018 and 2017; (ii) Consolidated statement of comprehensive income for the year ended December 31, 2019, 2018 and 2017; (iii) Consolidated statement of financial position for the year ended December 31, 2019 and 2018; (iv) Consolidated statement of changes in equity for the year ended December 31, 2019, 2018 and 2017; (v) Consolidated statement of cash flows for the year ended December 31, 2019, 2018 and 2017; and (vi) Notes to consolidated financial statements. Users of this data are advised, in accordance with Rule 406T of Regulation S-T promulgated by the SEC, that this Interactive Data File is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Exchange Act, and otherwise is not subject to liability under these sections.
|
|
Note
|
2019
|
|
2018
|
|
2017
|
|
|||
(In millions of U.S. dollars, except per share amounts)
|
|
|
|
|
||||||
|
|
|
|
|
||||||
Service revenues
|
|
8,240
|
|
8,526
|
|
9,105
|
|
|||
Sale of equipment and accessories
|
|
465
|
|
427
|
|
244
|
|
|||
Other revenues / other income
|
|
158
|
|
133
|
|
125
|
|
|||
Total operating revenues
|
3
|
8,863
|
|
9,086
|
|
9,474
|
|
|||
|
|
|
|
|
||||||
Service costs
|
|
(1,554
|
)
|
(1,701
|
)
|
(1,879
|
)
|
|||
Cost of equipment and accessories
|
|
(479
|
)
|
(415
|
)
|
(260
|
)
|
|||
Selling, general and administrative expenses
|
4
|
(2,965
|
)
|
(3,697
|
)
|
(3,748
|
)
|
|||
Other operating gain / (loss)
|
10
|
350
|
|
—
|
|
—
|
|
|||
Depreciation
|
12
|
(1,652
|
)
|
(1,339
|
)
|
(1,491
|
)
|
|||
Amortization
|
13
|
(394
|
)
|
(495
|
)
|
(537
|
)
|
|||
Impairment (loss) / reversal
|
11
|
(108
|
)
|
(858
|
)
|
(66
|
)
|
|||
Gain / (loss) on disposal of non-current assets
|
|
(43
|
)
|
(57
|
)
|
(26
|
)
|
|||
Gain / (loss) on disposal of subsidiaries
|
|
1
|
|
30
|
|
—
|
|
|||
|
|
|
|
|
||||||
Operating profit
|
|
2,019
|
|
554
|
|
1,467
|
|
|||
|
|
|
|
|
||||||
Finance costs
|
|
(892
|
)
|
(816
|
)
|
(935
|
)
|
|||
Finance income
|
|
53
|
|
67
|
|
95
|
|
|||
Other non-operating gain / (loss)
|
5
|
21
|
|
(68
|
)
|
(97
|
)
|
|||
Share of profit / (loss) of joint ventures and associates
|
|
—
|
|
—
|
|
(22
|
)
|
|||
Impairment of joint ventures and associates
|
|
—
|
|
—
|
|
(110
|
)
|
|||
Net foreign exchange gain / (loss)
|
|
(20
|
)
|
15
|
|
(70
|
)
|
|||
Profit / (loss) before tax
|
|
1,181
|
|
(248
|
)
|
328
|
|
|||
|
|
|
|
|
||||||
Income tax expense
|
9
|
(498
|
)
|
(369
|
)
|
(472
|
)
|
|||
Profit / (loss) from continuing operations
|
|
683
|
|
(617
|
)
|
(144
|
)
|
|||
|
|
|
|
|
||||||
Profit / (loss) after tax from discontinued operations
|
10
|
—
|
|
(300
|
)
|
(390
|
)
|
|||
Gain / (loss) on disposal of discontinued operations
|
10
|
—
|
|
1,279
|
|
—
|
|
|||
Profit / (loss) for the period
|
|
683
|
|
362
|
|
(534
|
)
|
|||
|
|
|
|
|
||||||
Attributable to:
|
|
|
|
|
||||||
The owners of the parent (continuing operations)
|
|
621
|
|
(397
|
)
|
(115
|
)
|
|||
The owners of the parent (discontinued operations)
|
|
—
|
|
979
|
|
(390
|
)
|
|||
Non-controlling interest
|
|
62
|
|
(220
|
)
|
(29
|
)
|
|||
|
|
683
|
|
362
|
|
(534
|
)
|
|||
|
|
|
|
|
||||||
Basic and diluted gain / (loss) per share attributable to ordinary equity holders of the parent:
|
|
|
|
|
||||||
From continuing operations
|
19
|
|
$0.36
|
|
|
($0.23
|
)
|
|
($0.07
|
)
|
From discontinued operations
|
19
|
|
$0.00
|
|
|
$0.56
|
|
|
($0.22
|
)
|
Total
|
19
|
|
$0.36
|
|
|
$0.33
|
|
|
($0.29
|
)
|
|
|
|
|
|
|
Note
|
2019
|
|
2018 *
|
|
2017
|
|
(In millions of U.S. dollars)
|
|
|
|
|
|||
|
|
|
|
|
|||
Profit / (loss)
|
|
683
|
|
362
|
|
(534
|
)
|
|
|
|
|
|
|||
Items that may be reclassified to profit or loss
|
|
|
|
|
|||
Share of other comprehensive income / (loss) of Italy Joint Venture
|
|
—
|
|
(18
|
)
|
(12
|
)
|
Foreign currency translation
|
|
49
|
|
(819
|
)
|
(637
|
)
|
Other
|
15
|
26
|
|
(7
|
)
|
(7
|
)
|
|
|
|
|
|
|||
Items reclassified to profit or loss
|
|
|
|
|
|||
Reclassification of accumulated foreign currency translation reserve to profit or loss
|
10
|
—
|
|
(79
|
)
|
—
|
|
Reclassification of accumulated share of other comprehensive income / (loss) of Italy Joint Venture to profit or loss
|
10
|
—
|
|
31
|
|
—
|
|
Other
|
15
|
(19
|
)
|
5
|
|
—
|
|
|
|
|
|
|
|||
Other comprehensive income / (loss) for the period, net of tax
|
|
56
|
|
(887
|
)
|
(656
|
)
|
|
|
|
|
|
|||
Total comprehensive income / (loss) for the period, net of tax
|
|
739
|
|
(525
|
)
|
(1,190
|
)
|
|
|
|
|
|
|||
Attributable to:
|
|
|
|
|
|||
The owners of the parent
|
|
733
|
|
(138
|
)
|
(1,081
|
)
|
Non-controlling interests
|
|
6
|
|
(387
|
)
|
(109
|
)
|
|
|
739
|
|
(525
|
)
|
(1,190
|
)
|
|
Note
|
2019
|
|
2018 *
|
|
(In millions of U.S. dollars)
|
|
|
|
||
|
|
|
|
||
Assets
|
|
|
|
||
Non-current assets
|
|
|
|
||
Property and equipment
|
12
|
7,340
|
|
4,932
|
|
Intangible assets
|
13
|
5,688
|
|
5,670
|
|
Investments and derivatives
|
15
|
235
|
|
58
|
|
Deferred tax assets
|
9
|
134
|
|
197
|
|
Other assets
|
7
|
163
|
|
135
|
|
Total non-current assets
|
|
13,560
|
|
10,992
|
|
|
|
|
|
||
Current assets
|
|
|
|
||
Inventories
|
|
169
|
|
141
|
|
Trade and other receivables
|
6
|
628
|
|
577
|
|
Investments and derivatives
|
15
|
82
|
|
88
|
|
Current income tax assets
|
9
|
16
|
|
112
|
|
Other assets
|
7
|
354
|
|
367
|
|
Assets held for sale
|
|
—
|
|
17
|
|
Cash and cash equivalents
|
16
|
1,250
|
|
1,808
|
|
Total current assets
|
|
2,499
|
|
3,110
|
|
|
|
|
|
||
Total assets
|
|
16,059
|
|
14,102
|
|
|
|
|
|
||
Equity and liabilities
|
|
|
|
||
Equity
|
|
|
|
||
Equity attributable to equity owners of the parent
|
18
|
1,226
|
|
3,670
|
|
Non-controlling interests
|
|
994
|
|
(891
|
)
|
Total equity
|
|
2,220
|
|
2,779
|
|
|
|
|
|
||
Non-current liabilities
|
|
|
|
||
Debt and derivatives
|
15
|
7,759
|
|
6,567
|
|
Provisions
|
8
|
138
|
|
110
|
|
Deferred tax liabilities
|
9
|
141
|
|
180
|
|
Other liabilities
|
7
|
33
|
|
53
|
|
Total non-current liabilities
|
|
8,071
|
|
6,910
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
||
Trade and other payables
|
|
1,847
|
|
1,624
|
|
Debt and derivatives
|
15
|
2,585
|
|
1,289
|
|
Provisions
|
8
|
222
|
|
234
|
|
Current income tax payables
|
9
|
102
|
|
196
|
|
Other liabilities
|
7
|
1,012
|
|
1,066
|
|
Liabilities held for sale
|
|
—
|
|
4
|
|
Total current liabilities
|
|
5,768
|
|
4,413
|
|
|
|
|
|
||
Total equity and liabilities
|
|
16,059
|
|
14,102
|
|
|
|
|
Attributable to equity owners of the parent
|
|
|
||||||||||||||
(In millions of U.S. dollars)
|
Note
|
Number of shares outstanding
|
|
Issued capital
|
|
Capital Surplus
|
|
Other capital reserves
|
|
Accumulated deficit *
|
|
Foreign currency translation
|
|
Total
|
|
Non-controlling interests
|
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2018
|
|
1,749,127,404
|
|
2
|
|
12,753
|
|
743
|
|
(1,412
|
)
|
(8,416
|
)
|
3,670
|
|
(891
|
)
|
2,779
|
|
Adjustments due to new accounting standards
|
24
|
—
|
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
—
|
|
(3
|
)
|
(1
|
)
|
(4
|
)
|
As of January 1, 2019
|
|
1,749,127,404
|
|
2
|
|
12,753
|
|
743
|
|
(1,415
|
)
|
(8,416
|
)
|
3,667
|
|
(892
|
)
|
2,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Profit / (loss) for the period
|
|
—
|
|
—
|
|
—
|
|
—
|
|
621
|
|
—
|
|
621
|
|
62
|
|
683
|
|
Other comprehensive income / (loss)
|
|
—
|
|
—
|
|
—
|
|
6
|
|
1
|
|
105
|
|
112
|
|
(56
|
)
|
56
|
|
Total comprehensive income / (loss)
|
|
—
|
|
—
|
|
—
|
|
6
|
|
622
|
|
105
|
|
733
|
|
6
|
|
739
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Dividends declared
|
20
|
—
|
|
—
|
|
—
|
|
—
|
|
(525
|
)
|
—
|
|
(525
|
)
|
(108
|
)
|
(633
|
)
|
Changes in ownership interest in a subsidiary
that do not result in a loss of control |
10
|
—
|
|
—
|
|
—
|
|
(2,594
|
)
|
—
|
|
—
|
|
(2,594
|
)
|
1,986
|
|
(608
|
)
|
Other
|
|
—
|
|
—
|
|
—
|
|
(42
|
)
|
(12
|
)
|
(1
|
)
|
(55
|
)
|
2
|
|
(53
|
)
|
As of December 31, 2019
|
|
1,749,127,404
|
|
2
|
|
12,753
|
|
(1,887
|
)
|
(1,330
|
)
|
(8,312
|
)
|
1,226
|
|
994
|
|
2,220
|
|
|
|
|
Attributable to equity owners of the parent
|
|
|
||||||||||||||
(In millions of U.S. dollars)
|
Note
|
Number of shares outstanding
|
|
Issued capital
|
|
Capital Surplus
|
|
Other capital reserves
|
|
Accumulated deficit *
|
|
Foreign currency translation
|
|
Total
|
|
Non-controlling interests
|
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2017
|
|
1,749,127,404
|
|
2
|
|
12,753
|
|
729
|
|
(1,486
|
)
|
(7,667
|
)
|
4,331
|
|
(441
|
)
|
3,890
|
|
Adjustments due to new accounting standards
|
|
—
|
|
—
|
|
—
|
|
—
|
|
46
|
|
—
|
|
46
|
|
11
|
|
57
|
|
As of January 1, 2018
|
|
1,749,127,404
|
|
2
|
|
12,753
|
|
729
|
|
(1,440
|
)
|
(7,667
|
)
|
4,377
|
|
(430
|
)
|
3,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Profit / (loss) for the period
|
|
—
|
|
—
|
|
—
|
|
—
|
|
582
|
|
—
|
|
582
|
|
(220
|
)
|
362
|
|
Other comprehensive income / (loss)
|
|
—
|
|
—
|
|
—
|
|
11
|
|
5
|
|
(736
|
)
|
(720
|
)
|
(167
|
)
|
(887
|
)
|
Total comprehensive income / (loss)
|
|
—
|
|
—
|
|
—
|
|
11
|
|
587
|
|
(736
|
)
|
(138
|
)
|
(387
|
)
|
(525
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Dividends declared
|
20
|
—
|
|
—
|
|
—
|
|
—
|
|
(509
|
)
|
—
|
|
(509
|
)
|
(93
|
)
|
(602
|
)
|
Other
|
|
—
|
|
—
|
|
—
|
|
3
|
|
(50
|
)
|
(13
|
)
|
(60
|
)
|
19
|
|
(41
|
)
|
As of December 31, 2018
|
|
1,749,127,404
|
|
2
|
|
12,753
|
|
743
|
|
(1,412
|
)
|
(8,416
|
)
|
3,670
|
|
(891
|
)
|
2,779
|
|
|
|
|
Attributable to equity owners of the parent
|
|
|
||||||||||||||
(In millions of U.S. dollars, except for share amounts)
|
Note
|
Number of shares outstanding
|
|
Issued capital
|
|
Capital Surplus
|
|
Other capital reserves
|
|
Accumulated deficit *
|
|
Foreign currency translation
|
|
Total
|
|
Non-controlling interests
|
|
Total equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
As of January 1, 2017
|
|
1,749,004,648
|
|
2
|
|
12,753
|
|
753
|
|
(439
|
)
|
(7,109
|
)
|
5,960
|
|
83
|
|
6,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Profit / (loss) for the period
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(505
|
)
|
—
|
|
(505
|
)
|
(29
|
)
|
(534
|
)
|
Other comprehensive income
|
|
—
|
|
—
|
|
—
|
|
(18
|
)
|
—
|
|
(558
|
)
|
(576
|
)
|
(80
|
)
|
(656
|
)
|
Total comprehensive income
|
|
—
|
|
—
|
|
—
|
|
(18
|
)
|
(505
|
)
|
(558
|
)
|
(1,081
|
)
|
(109
|
)
|
(1,190
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Dividends declared
|
20
|
—
|
|
—
|
|
—
|
|
—
|
|
(536
|
)
|
—
|
|
(536
|
)
|
(168
|
)
|
(704
|
)
|
Share-based payment transactions
|
|
122,756
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Changes in ownership interest in a subsidiary that do not result in a loss of control
|
|
—
|
|
—
|
|
—
|
|
(12
|
)
|
—
|
|
—
|
|
(12
|
)
|
(247
|
)
|
(259
|
)
|
Reallocation to legal reserve in Algeria
|
|
—
|
|
—
|
|
—
|
|
6
|
|
(6
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
As of December 31, 2017
|
|
1,749,127,404
|
|
2
|
|
12,753
|
|
729
|
|
(1,486
|
)
|
(7,667
|
)
|
4,331
|
|
(441
|
)
|
3,890
|
|
(In millions of U.S. dollars)
|
Note
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|||
Operating activities
|
|
|
|
|
|||
Profit / (loss) before tax from continuing operations
|
|
1,181
|
|
(248
|
)
|
328
|
|
Non-cash adjustments to reconcile profit before tax to net cash flows
|
|
|
|
|
|||
Depreciation, amortization and impairment loss / (reversal)
|
|
2,154
|
|
2,692
|
|
2,094
|
|
(Gain) / loss on disposal of non-current assets
|
|
43
|
|
57
|
|
26
|
|
(Gain) / loss on disposal of subsidiaries
|
|
(1
|
)
|
(30
|
)
|
—
|
|
Finance costs
|
|
892
|
|
816
|
|
935
|
|
Finance income
|
|
(53
|
)
|
(67
|
)
|
(95
|
)
|
Other non-operating (gain) / loss
|
|
(21
|
)
|
68
|
|
97
|
|
Share of loss and impairment of joint ventures and associates
|
|
—
|
|
—
|
|
132
|
|
Net foreign exchange (gain) / loss
|
|
20
|
|
(15
|
)
|
70
|
|
|
|
|
|
|
|||
Changes in trade and other receivables and prepayments
|
|
(224
|
)
|
96
|
|
(168
|
)
|
Changes in inventories
|
|
(28
|
)
|
(88
|
)
|
54
|
|
Changes in trade and other payables
|
|
52
|
|
274
|
|
311
|
|
Changes in provisions, pensions and other
|
|
106
|
|
40
|
|
(119
|
)
|
|
|
|
|
|
|||
Interest paid
|
15
|
(714
|
)
|
(736
|
)
|
(834
|
)
|
Interest received
|
|
58
|
|
60
|
|
89
|
|
Income tax paid
|
|
(516
|
)
|
(404
|
)
|
(445
|
)
|
|
|
|
|
|
|||
Net cash flows from operating activities
|
|
2,949
|
|
2,515
|
|
2,475
|
|
|
|
|
|
|
|||
Investing activities
|
|
|
|
|
|||
Purchase of property, plant and equipment and intangible assets
|
|
(1,683
|
)
|
(1,948
|
)
|
(2,037
|
)
|
Payments on deposits
|
|
(922
|
)
|
(32
|
)
|
(1,165
|
)
|
Receipts from deposits
|
|
698
|
|
1,066
|
|
267
|
|
Proceeds from sale of Italy Joint Venture
|
|
—
|
|
2,830
|
|
—
|
|
Receipts from / (investment in) financial assets
|
|
(9
|
)
|
62
|
|
(101
|
)
|
Other proceeds from investing activities, net
|
|
28
|
|
19
|
|
20
|
|
|
|
|
|
|
|||
Net cash flows from / (used in) investing activities
|
|
(1,888
|
)
|
1,997
|
|
(3,016
|
)
|
|
|
|
|
|
|||
Financing activities
|
|
|
|
|
|||
Proceeds from borrowings, net of fees paid *
|
15
|
2,610
|
|
807
|
|
6,193
|
|
Repayment of debt
|
15
|
(2,978
|
)
|
(4,122
|
)
|
(5,948
|
)
|
Acquisition of non-controlling interest
|
10
|
(613
|
)
|
—
|
|
(259
|
)
|
Dividends paid to owners of the parent
|
20
|
(520
|
)
|
(508
|
)
|
(518
|
)
|
Dividends paid to non-controlling interests
|
20
|
(138
|
)
|
(93
|
)
|
(201
|
)
|
|
|
|
|
|
|||
Net cash flows from / (used in) financing activities
|
|
(1,639
|
)
|
(3,916
|
)
|
(733
|
)
|
|
|
|
|
|
|||
Net increase / (decrease) in cash and cash equivalents
|
|
(578
|
)
|
596
|
|
(1,274
|
)
|
Net foreign exchange difference
|
|
(9
|
)
|
(119
|
)
|
(354
|
)
|
Cash and cash equivalents at beginning of period
|
|
1,791
|
|
1,314
|
|
2,942
|
|
|
|
|
|
|
|||
Cash and cash equivalents at end of period, net of overdraft
|
16
|
1,204
|
|
1,791
|
|
1,314
|
|
2
|
SEGMENT INFORMATION
|
|
Total revenue
|
Adjusted EBITDA
|
CAPEX excl licenses and ROU
|
|||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Our cornerstone
|
|
|
|
|
|
|
|
|
|
|||||||||
Russia
|
4,481
|
|
4,654
|
|
4,729
|
|
1,957
|
|
1,677
|
|
1,788
|
|
976
|
|
742
|
|
667
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Our growth engines
|
|
|
|
|
|
|
|
|
|
|||||||||
Pakistan
|
1,321
|
|
1,494
|
|
1,525
|
|
669
|
|
714
|
|
703
|
|
213
|
|
199
|
|
240
|
|
Ukraine
|
870
|
|
688
|
|
622
|
|
572
|
|
387
|
|
347
|
|
156
|
|
115
|
|
98
|
|
Kazakhstan
|
486
|
|
441
|
|
416
|
|
270
|
|
206
|
|
180
|
|
108
|
|
66
|
|
75
|
|
Uzbekistan
|
258
|
|
315
|
|
513
|
|
136
|
|
136
|
|
261
|
|
53
|
|
39
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Our frontier markets
|
|
|
|
|
|
|
|
|
|
|||||||||
Algeria
|
775
|
|
813
|
|
915
|
|
354
|
|
363
|
|
426
|
|
108
|
|
107
|
|
132
|
|
Bangladesh
|
537
|
|
521
|
|
574
|
|
222
|
|
183
|
|
233
|
|
82
|
|
93
|
|
101
|
|
Other and eliminations
|
135
|
|
160
|
|
180
|
|
312
|
|
(34
|
)
|
(26
|
)
|
38
|
|
43
|
|
53
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
HQ
|
—
|
|
—
|
|
—
|
|
(277
|
)
|
(359
|
)
|
(325
|
)
|
7
|
|
11
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total segments
|
8,863
|
|
9,086
|
|
9,474
|
|
4,215
|
|
3,273
|
|
3,587
|
|
1,741
|
|
1,415
|
|
1,460
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|||
Total Segments Adjusted EBITDA
|
4,215
|
|
3,273
|
|
3,587
|
|
|
|
|
|
|||
Depreciation
|
(1,652
|
)
|
(1,339
|
)
|
(1,491
|
)
|
Amortization
|
(394
|
)
|
(495
|
)
|
(537
|
)
|
Impairment (loss) / reversal
|
(108
|
)
|
(858
|
)
|
(66
|
)
|
Gain / (loss) on disposal of non-current assets
|
(43
|
)
|
(57
|
)
|
(26
|
)
|
Gain / (loss) on sale of subsidiaries
|
1
|
|
30
|
|
—
|
|
Finance costs
|
(892
|
)
|
(816
|
)
|
(935
|
)
|
Finance income
|
53
|
|
67
|
|
95
|
|
Other non-operating gain / (loss), net
|
21
|
|
(68
|
)
|
(97
|
)
|
Share of loss of joint ventures and associates
|
—
|
|
—
|
|
(22
|
)
|
Impairment of joint ventures and associates
|
—
|
|
—
|
|
(110
|
)
|
Net foreign exchange gain / (loss)
|
(20
|
)
|
15
|
|
(70
|
)
|
|
|
|
|
|||
Profit / (loss) before tax from continuing operations
|
1,181
|
|
(248
|
)
|
328
|
|
|
2019
|
|
2018
|
|
|
|
|
||
Our cornerstone
|
|
|
||
Russia
|
6,797
|
|
4,794
|
|
|
|
|
||
Our growth engines
|
|
|
||
Pakistan
|
1,662
|
|
1,661
|
|
Ukraine
|
1,022
|
|
748
|
|
Kazakhstan
|
554
|
|
458
|
|
Uzbekistan
|
217
|
|
212
|
|
|
|
|
||
Our frontier markets
|
|
|
||
Algeria
|
1,926
|
|
1,890
|
|
Bangladesh
|
855
|
|
773
|
|
Other and eliminations
|
499
|
|
438
|
|
|
|
|
||
HQ
|
28
|
|
18
|
|
|
|
|
||
Total segments
|
13,560
|
|
10,992
|
|
3
|
OPERATING REVENUE
|
|
Mobile
|
Fixed
|
Total revenue
|
|||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Our cornerstone
|
|
|
|
|
|
|
|
|
|
|||||||||
Russia
|
3,938
|
|
4,085
|
|
4,053
|
|
543
|
|
569
|
|
676
|
|
4,481
|
|
4,654
|
|
4,729
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Our growth engines
|
|
|
|
|
|
|
|
|
|
|||||||||
Pakistan
|
1,321
|
|
1,494
|
|
1,525
|
|
—
|
|
—
|
|
—
|
|
1,321
|
|
1,494
|
|
1,525
|
|
Ukraine *
|
818
|
|
644
|
|
581
|
|
52
|
|
44
|
|
41
|
|
870
|
|
688
|
|
622
|
|
Kazakhstan
|
419
|
|
368
|
|
341
|
|
67
|
|
73
|
|
75
|
|
486
|
|
441
|
|
416
|
|
Uzbekistan
|
256
|
|
313
|
|
510
|
|
2
|
|
2
|
|
3
|
|
258
|
|
315
|
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Our frontier markets
|
|
|
|
|
|
|
|
|
|
|||||||||
Algeria
|
775
|
|
813
|
|
915
|
|
—
|
|
—
|
|
—
|
|
775
|
|
813
|
|
915
|
|
Bangladesh
|
537
|
|
521
|
|
574
|
|
—
|
|
—
|
|
—
|
|
537
|
|
521
|
|
574
|
|
Other and eliminations
|
76
|
|
128
|
|
189
|
|
59
|
|
32
|
|
(9
|
)
|
135
|
|
160
|
|
180
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
HQ
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total segments
|
8,140
|
|
8,366
|
|
8,688
|
|
723
|
|
720
|
|
786
|
|
8,863
|
|
9,086
|
|
9,474
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
|
|
|
|
|
||
Contract balances
|
|
|
|
||
Receivables (billed)
|
|
748
|
|
672
|
|
Contract assets (unbilled)
|
|
38
|
|
44
|
|
Contract liabilities
|
|
(243
|
)
|
(361
|
)
|
|
|
|
|
||
Capitalized costs
|
|
|
|
||
Customer acquisition costs
|
|
101
|
|
83
|
|
|
|
|
|
4
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|||
Network and IT costs
|
|
791
|
|
1,176
|
|
1,185
|
|
Personnel costs
|
|
875
|
|
889
|
|
927
|
|
Customer associated costs
|
|
720
|
|
867
|
|
893
|
|
Losses on receivables
|
|
66
|
|
62
|
|
59
|
|
Taxes, other than income taxes
|
|
158
|
|
217
|
|
219
|
|
Other
|
|
355
|
|
486
|
|
465
|
|
Total selling, general and administrative expenses
|
|
2,965
|
|
3,697
|
|
3,748
|
|
5
|
OTHER NON-OPERATING GAIN / (LOSS)
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|||
Loss from early debt redemption
|
|
—
|
|
(30
|
)
|
(124
|
)
|
Change of fair value of other derivatives
|
|
(17
|
)
|
(58
|
)
|
(13
|
)
|
Other gains / (losses)
|
|
38
|
|
20
|
|
40
|
|
Other non-operating gain / (loss), net
|
|
21
|
|
(68
|
)
|
(97
|
)
|
6
|
TRADE AND OTHER RECEIVABLES
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|||
Trade receivables (gross)*
|
|
786
|
|
716
|
|
798
|
|
Expected credit losses
|
|
(176
|
)
|
(171
|
)
|
(169
|
)
|
Trade receivables (net)
|
|
610
|
|
545
|
|
629
|
|
|
|
|
|
|
|||
Other receivable, net of expected credit losses allowance
|
|
18
|
|
32
|
|
126
|
|
Total trade and other receivables
|
|
628
|
|
577
|
|
755
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|||
Balance as of January 1
|
|
171
|
|
169
|
|
160
|
|
|
|
|
|
|
|||
Adjustment due to new accounting standards
|
|
—
|
|
14
|
|
—
|
|
Accruals for expected credit losses
|
|
66
|
|
47
|
|
36
|
|
Recoveries
|
|
(8
|
)
|
(17
|
)
|
(9
|
)
|
Accounts receivable written off
|
|
(31
|
)
|
(18
|
)
|
(13
|
)
|
Reclassification
|
|
(24
|
)
|
—
|
|
—
|
|
Foreign currency translation adjustment
|
|
2
|
|
(15
|
)
|
(4
|
)
|
Other movements
|
|
—
|
|
(9
|
)
|
(1
|
)
|
|
|
|
|
|
|||
Balance as of December 31
|
|
176
|
|
171
|
|
169
|
|
|
|
|
Days past due
|
|
||||||||
December 31, 2019
|
Contract assets
|
|
Current
|
|
< 30 days
|
|
Between 31 and 120 days
|
|
> 120 days
|
|
Total
|
|
|
|
|
|
|
|
|
||||||
Expected loss rate, %
|
1.1
|
%
|
1.6
|
%
|
4.9
|
%
|
36.5
|
%
|
86.9
|
%
|
|
|
Trade receivables
|
38
|
|
446
|
|
82
|
|
52
|
|
168
|
|
786
|
|
Expected credit losses
|
—
|
|
(7
|
)
|
(4
|
)
|
(19
|
)
|
(146
|
)
|
(176
|
)
|
|
|
|
|
|
|
|
||||||
Trade receivables, net
|
38
|
|
439
|
|
78
|
|
33
|
|
22
|
|
610
|
|
|
|
|
Days past due
|
|
||||||||
December 31, 2018
|
Contract assets
|
|
Current
|
|
< 30 days
|
|
Between 31 and 120 days
|
|
> 120 days
|
|
Total
|
|
|
|
|
|
|
|
|
||||||
Expected loss rate, %
|
0.2
|
%
|
1.2
|
%
|
9.6
|
%
|
33.6
|
%
|
81.5
|
%
|
|
|
Trade receivables
|
44
|
|
389
|
|
61
|
|
44
|
|
178
|
|
716
|
|
Expected credit losses
|
(1
|
)
|
(5
|
)
|
(6
|
)
|
(15
|
)
|
(144
|
)
|
(171
|
)
|
|
|
|
|
|
|
|
||||||
Trade receivables, net
|
43
|
|
384
|
|
55
|
|
29
|
|
34
|
|
545
|
|
7
|
OTHER ASSETS AND LIABILITIES
|
|
|
2019
|
|
2018 *
|
|
|
|
|
|
||
Other non-current assets
|
|
|
|
||
Customer acquisition costs (see Note 3)
|
|
101
|
|
83
|
|
Tax advances (non-income tax)
|
|
30
|
|
32
|
|
Other non-financial assets
|
|
32
|
|
20
|
|
Total other non-current assets
|
|
163
|
|
135
|
|
|
|
|
|
||
Other current assets
|
|
|
|
||
Advances to suppliers
|
|
111
|
|
151
|
|
Input value added tax
|
|
158
|
|
149
|
|
Prepaid taxes
|
|
45
|
|
39
|
|
Other assets
|
|
40
|
|
28
|
|
Total other current assets
|
|
354
|
|
367
|
|
|
|
2019
|
|
2018 *
|
|
|
|
|
|
||
Other non-current liabilities
|
|
|
|
||
Long-term deferred revenue (see Note 3)
|
|
18
|
|
10
|
|
Other liabilities
|
|
15
|
|
43
|
|
Total other non-current liabilities
|
|
33
|
|
53
|
|
|
|
|
|
||
Other current liabilities
|
|
|
|
||
Taxes payable (non-income taxes)
|
|
411
|
|
352
|
|
Short-term deferred revenue (see Note 3)
|
|
161
|
|
151
|
|
Customer advances (see Note 3)
|
|
64
|
|
200
|
|
Other payments to authorities
|
|
97
|
|
86
|
|
Due to employees
|
|
197
|
|
198
|
|
Other liabilities
|
|
82
|
|
79
|
|
Total other current liabilities
|
|
1,012
|
|
1,066
|
|
8
|
PROVISIONS AND CONTINGENT LIABILITIES
|
|
Non-income tax provisions
|
|
Decom-missioning provision
|
|
Legal provision
|
|
Other provisions
|
|
Total *
|
|
|
|
|
|
|
|
|||||
As of January 1, 2018
|
98
|
|
106
|
|
49
|
|
34
|
|
287
|
|
|
|
|
|
|
|
|||||
Arising during the year
|
11
|
|
4
|
|
5
|
|
43
|
|
63
|
|
Reclassified to assets held for sale
|
(1
|
)
|
(4
|
)
|
—
|
|
—
|
|
(5
|
)
|
Utilized
|
(11
|
)
|
(1
|
)
|
(2
|
)
|
(15
|
)
|
(29
|
)
|
Unused amounts reversed
|
—
|
|
(2
|
)
|
(8
|
)
|
—
|
|
(10
|
)
|
Transfer and reclassification
|
65
|
|
—
|
|
—
|
|
—
|
|
65
|
|
Discount rate adjustment and imputed interest (change in estimate)
|
—
|
|
8
|
|
—
|
|
—
|
|
8
|
|
Translation adjustments and other
|
(12
|
)
|
(18
|
)
|
—
|
|
(5
|
)
|
(35
|
)
|
|
|
|
|
|
|
|||||
As of December 31, 2018
|
150
|
|
93
|
|
44
|
|
57
|
|
344
|
|
Non-current
|
—
|
|
93
|
|
17
|
|
—
|
|
110
|
|
Current
|
150
|
|
—
|
|
27
|
|
57
|
|
234
|
|
|
|
|
|
|
|
|||||
As of January 1, 2019
|
150
|
|
93
|
|
44
|
|
57
|
|
344
|
|
|
|
|
|
|
|
|||||
Arising during the year
|
79
|
|
28
|
|
3
|
|
70
|
|
180
|
|
Utilized
|
(105
|
)
|
(1
|
)
|
(6
|
)
|
(51
|
)
|
(163
|
)
|
Unused amounts reversed
|
(4
|
)
|
—
|
|
(15
|
)
|
—
|
|
(19
|
)
|
Transfer and reclassification
|
5
|
|
5
|
|
(1
|
)
|
(2
|
)
|
7
|
|
Discount rate adjustment and imputed interest (change in estimate)
|
—
|
|
8
|
|
—
|
|
—
|
|
8
|
|
Translation adjustments and other
|
1
|
|
5
|
|
1
|
|
(4
|
)
|
3
|
|
|
|
|
|
|
|
|||||
As of December 31, 2019
|
126
|
|
138
|
|
26
|
|
70
|
|
360
|
|
Non-current
|
—
|
|
138
|
|
—
|
|
—
|
|
138
|
|
Current
|
126
|
|
—
|
|
26
|
|
70
|
|
222
|
|
9
|
INCOME TAXES
|
|
|
2019
|
|
2018
|
|
|
|
|
|
||
Current tax payable
|
|
36
|
|
32
|
|
Uncertain tax provisions
|
|
66
|
|
164
|
|
Total income tax payable
|
|
102
|
|
196
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|||
Current income taxes
|
|
|
|
|
|||
Current year
|
|
495
|
|
477
|
|
397
|
|
Adjustments in respect of previous years
|
|
5
|
|
9
|
|
(28
|
)
|
Total current income taxes
|
|
500
|
|
486
|
|
369
|
|
|
|
|
|
|
|||
Deferred income taxes
|
|
|
|
|
|||
Movement of temporary differences and losses *
|
|
(36
|
)
|
(152
|
)
|
(13
|
)
|
Changes in tax rates
|
|
(1
|
)
|
6
|
|
10
|
|
Changes in recognized deferred tax assets
|
|
39
|
|
—
|
|
20
|
|
Adjustments in respect of previous years
|
|
3
|
|
28
|
|
86
|
|
Other
|
|
(7
|
)
|
1
|
|
—
|
|
Total deferred tax expense
|
|
(2
|
)
|
(117
|
)
|
103
|
|
|
|
|
|
|
|||
Income tax expense
|
|
498
|
|
369
|
|
472
|
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|||
Profit / (loss) before tax from continuing operations
|
|
1,181
|
|
(248
|
)
|
328
|
|
Income tax benefit / (expense) at statutory tax rate (25.0%)
|
|
(295
|
)
|
62
|
|
(82
|
)
|
|
|
|
|
|
|||
Difference due to the effects of:
|
|
|
|
|
|||
Different tax rates in different jurisdictions
|
|
20
|
|
89
|
|
84
|
|
Non-deductible expenses
|
|
(90
|
)
|
(120
|
)
|
(117
|
)
|
Non-taxable income
|
|
5
|
|
49
|
|
35
|
|
Adjustments in respect of previous years
|
|
(49
|
)
|
(39
|
)
|
(52
|
)
|
Movements in recognized deferred tax assets
|
|
(13
|
)
|
(354
|
)
|
(166
|
)
|
Withholding taxes
|
|
(50
|
)
|
45
|
|
(123
|
)
|
Uncertain tax positions
|
|
6
|
|
(17
|
)
|
(24
|
)
|
Change in income tax rate
|
|
1
|
|
(6
|
)
|
(10
|
)
|
Other
|
|
(33
|
)
|
(78
|
)
|
(17
|
)
|
|
|
|
|
|
|||
Income tax benefit / (expense)
|
|
(498
|
)
|
(369
|
)
|
(472
|
)
|
|
|
|
|
|
|||
Effective tax rate
|
|
42.2
|
%
|
-148.8
|
%
|
143.9
|
%
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
||
Deferred tax assets
|
|
134
|
|
197
|
|
Deferred tax liability
|
|
(141
|
)
|
(180
|
)
|
|
|
|
|
||
Net deferred tax position
|
|
(7
|
)
|
17
|
|
|
|
Movements in deferred taxes
|
|
|||||
|
Opening balance
|
|
Net income statement movement
|
|
Other movements
|
|
Closing balance
|
|
|
|
|
|
|
||||
Property and equipment
|
(275
|
)
|
5
|
|
(18
|
)
|
(288
|
)
|
Intangible assets
|
(60
|
)
|
22
|
|
—
|
|
(38
|
)
|
Trade receivables
|
32
|
|
16
|
|
(1
|
)
|
47
|
|
Provisions
|
30
|
|
2
|
|
(1
|
)
|
31
|
|
Accounts payable
|
113
|
|
11
|
|
32
|
|
156
|
|
|
|
|
|
|
||||
Withholding tax on undistributed earnings
|
(50
|
)
|
(2
|
)
|
—
|
|
(52
|
)
|
|
|
|
|
|
||||
Tax losses and other balances carried forwards
|
2,173
|
|
(68
|
)
|
(79
|
)
|
2,026
|
|
Non-recognized deferred tax assets
|
(1,955
|
)
|
—
|
|
61
|
|
(1,894
|
)
|
|
|
|
|
|
||||
Other
|
9
|
|
12
|
|
(16
|
)
|
5
|
|
|
|
|
|
|
||||
Net deferred tax positions
|
17
|
|
(2
|
)
|
(22
|
)
|
(7
|
)
|
|
|
Movements in deferred taxes
|
|
|||||
|
Opening balance
|
|
Net income statement movement
|
|
Other movements
|
|
Closing balance
|
|
|
|
|
|
|
||||
Property and equipment
|
(443
|
)
|
126
|
|
42
|
|
(275
|
)
|
Intangible assets
|
(165
|
)
|
94
|
|
11
|
|
(60
|
)
|
Trade receivables
|
36
|
|
(6
|
)
|
2
|
|
32
|
|
Provisions
|
33
|
|
2
|
|
(5
|
)
|
30
|
|
Accounts payable
|
133
|
|
7
|
|
(27
|
)
|
113
|
|
|
|
|
|
|
||||
Withholding tax on undistributed earnings
|
(116
|
)
|
70
|
|
(4
|
)
|
(50
|
)
|
|
|
|
|
|
||||
Tax losses and other balances carried forwards
|
2,434
|
|
(191
|
)
|
(70
|
)
|
2,173
|
|
Non-recognized deferred tax assets
|
(1,980
|
)
|
—
|
|
25
|
|
(1,955
|
)
|
|
|
|
|
|
||||
Other
|
28
|
|
15
|
|
(34
|
)
|
9
|
|
|
|
|
|
|
||||
Net deferred tax positions
|
(40
|
)
|
117
|
|
(60
|
)
|
17
|
|
As of December 31, 2019
|
0-5 years
|
|
6-10 years
|
|
More than 10 years
|
|
Indefinite
|
|
Total
|
|
|
|
|
|
|
|
|||||
Tax losses expiry
|
|
|
|
|
|
|||||
Recognized losses
|
—
|
|
—
|
|
—
|
|
(280
|
)
|
(280
|
)
|
Recognized DTA
|
—
|
|
—
|
|
—
|
|
73
|
|
73
|
|
|
|
|
|
|
|
|||||
Non-recognized losses
|
(1,292
|
)
|
(1,645
|
)
|
—
|
|
(6,486
|
)
|
(9,423
|
)
|
Non-recognized DTA
|
279
|
|
357
|
|
—
|
|
1,258
|
|
1,894
|
|
|
|
|
|
|
|
|||||
Other credits carried forwards expiry
|
|
|
|
|
|
|||||
Recognized credits
|
(13
|
)
|
(46
|
)
|
—
|
|
—
|
|
(59
|
)
|
Recognized DTA
|
13
|
|
46
|
|
—
|
|
—
|
|
59
|
|
|
|
|
|
|
|
|||||
Non-recognized credits
|
—
|
|
—
|
|
—
|
|
(143
|
)
|
(143
|
)
|
Non-recognized DTA
|
—
|
|
—
|
|
—
|
|
31
|
|
31
|
|
|
|
|
|
|
|
As of December 31, 2018
|
0-5 years
|
|
6-10 years
|
|
More than 10 years
|
|
Indefinite
|
|
Total
|
|
|
|
|
|
|
|
|||||
Tax losses expiry
|
|
|
|
|
|
|||||
Recognized losses
|
(83
|
)
|
—
|
|
—
|
|
(425
|
)
|
(508
|
)
|
Recognized DTA
|
17
|
|
—
|
|
—
|
|
146
|
|
163
|
|
|
|
|
|
|
|
|||||
Non-recognized losses
|
(968
|
)
|
(2,421
|
)
|
—
|
|
(6,346
|
)
|
(9,735
|
)
|
Non-recognized DTA
|
198
|
|
497
|
|
—
|
|
1,260
|
|
1,955
|
|
|
|
|
|
|
|
|||||
Other credits carried forwards expiry
|
|
|
|
|
|
|||||
Recognized credits
|
(30
|
)
|
(25
|
)
|
—
|
|
—
|
|
(55
|
)
|
Recognized DTA
|
30
|
|
25
|
|
—
|
|
—
|
|
55
|
|
|
|
|
|
|
|
|||||
Non-recognized credits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Non-recognized DTA
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
10
|
SIGNIFICANT TRANSACTIONS
|
|
|
2018
|
|
|
|
|
|
Cash consideration received
|
|
2,830
|
|
|
|
|
|
Derecognition of assets classified as held for sale
|
|
(1,599
|
)
|
Release cumulative share of other comprehensive income / (loss) of Italy Joint Venture
|
|
(31
|
)
|
Release cumulative foreign currency translation reserve related to Italy Joint Venture *
|
|
79
|
|
Gain / (loss) on disposal of discontinued operations
|
|
1,279
|
|
11
|
IMPAIRMENT OF ASSETS
|
|
|
Property and equipment
|
|
Intangible assets
|
|
Goodwill
|
|
Total impairment
|
|
|
|
|
|
|
|
||||
2018
|
|
|
|
|
|
||||
Algeria
|
|
—
|
|
—
|
|
125
|
|
125
|
|
Armenia
|
|
46
|
|
10
|
|
25
|
|
81
|
|
Bangladesh
|
|
221
|
|
230
|
|
—
|
|
451
|
|
Georgia
|
|
31
|
|
19
|
|
—
|
|
50
|
|
Kyrgyzstan
|
|
—
|
|
—
|
|
74
|
|
74
|
|
Other
|
|
37
|
|
40
|
|
—
|
|
77
|
|
|
|
335
|
|
299
|
|
224
|
|
858
|
|
|
|
|
|
|
|
||||
2017
|
|
|
|
|
|
||||
Armenia
|
|
—
|
|
—
|
|
34
|
|
34
|
|
Kyrgyzstan
|
|
—
|
|
—
|
|
17
|
|
17
|
|
Other
|
|
15
|
|
—
|
|
—
|
|
15
|
|
|
|
15
|
|
—
|
|
51
|
|
66
|
|
|
Discount rate (local currency)
|
|
Average annual revenue growth rate during forecast period
|
|
Terminal growth rate
|
|
||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Russia
|
9.1
|
%
|
10.3
|
%
|
10.6
|
%
|
1.4
|
%
|
1.1
|
%
|
1.9
|
%
|
1.6
|
%
|
1.3
|
%
|
1.0
|
%
|
Ukraine
|
14.6
|
%
|
16.3
|
%
|
17.1
|
%
|
5.6
|
%
|
4.4
|
%
|
3.9
|
%
|
3.2
|
%
|
4.0
|
%
|
2.0
|
%
|
Algeria
|
10.4
|
%
|
11.1
|
%
|
10.7
|
%
|
1.0
|
%
|
0.7
|
%
|
1.0
|
%
|
1.0
|
%
|
0.9
|
%
|
3.0
|
%
|
Pakistan
|
14.5
|
%
|
14.4
|
%
|
15.0
|
%
|
3.9
|
%
|
3.5
|
%
|
5.0
|
%
|
2.7
|
%
|
4.0
|
%
|
4.0
|
%
|
Bangladesh
|
11.4
|
%
|
12.2
|
%
|
12.7
|
%
|
3.2
|
%
|
0.6
|
%
|
5.0
|
%
|
3.3
|
%
|
4.0
|
%
|
4.6
|
%
|
Kazakhstan
|
9.2
|
%
|
8.4
|
%
|
10.8
|
%
|
5.3
|
%
|
2.8
|
%
|
3.2
|
%
|
3.3
|
%
|
1.1
|
%
|
2.4
|
%
|
Kyrgyzstan
|
14.1
|
%
|
14.8
|
%
|
15.5
|
%
|
1.6
|
%
|
2.8
|
%
|
(1.5
|
)%
|
5.0
|
%
|
5.0
|
%
|
3.5
|
%
|
Uzbekistan
|
14.5
|
%
|
13.1
|
%
|
15.3
|
%
|
4.1
|
%
|
5.5
|
%
|
6.9
|
%
|
6.0
|
%
|
6.3
|
%
|
6.5
|
%
|
Armenia
|
11.4
|
%
|
12.5
|
%
|
13.0
|
%
|
(1.0
|
)%
|
0.2
|
%
|
(1.0
|
)%
|
3.0
|
%
|
0.8
|
%
|
3.0
|
%
|
Georgia
|
9.6
|
%
|
10.6
|
%
|
11.0
|
%
|
3.6
|
%
|
2.1
|
%
|
5.6
|
%
|
3.0
|
%
|
3.0
|
%
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Average operating margin
|
|
Average CAPEX excl licenses and ROU as a percentage of revenue
|
|
||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
||||||
Russia
|
34.7
|
%
|
34.6
|
%
|
36.4
|
%
|
19.9
|
%
|
19.8
|
%
|
15.7
|
%
|
Ukraine
|
59.9
|
%
|
54.0
|
%
|
49.9
|
%
|
18.8
|
%
|
16.3
|
%
|
15.6
|
%
|
Algeria
|
42.6
|
%
|
44.0
|
%
|
46.2
|
%
|
12.5
|
%
|
15.1
|
%
|
14.8
|
%
|
Pakistan
|
47.3
|
%
|
47.9
|
%
|
43.6
|
%
|
17.2
|
%
|
16.7
|
%
|
15.3
|
%
|
Bangladesh
|
36.0
|
%
|
35.4
|
%
|
38.7
|
%
|
15.4
|
%
|
14.9
|
%
|
14.3
|
%
|
Kazakhstan
|
49.9
|
%
|
46.5
|
%
|
44.5
|
%
|
20.0
|
%
|
17.7
|
%
|
17.9
|
%
|
Kyrgyzstan
|
31.4
|
%
|
39.9
|
%
|
42.0
|
%
|
26.9
|
%
|
17.2
|
%
|
16.4
|
%
|
Uzbekistan
|
51.4
|
%
|
43.9
|
%
|
42.9
|
%
|
19.4
|
%
|
16.2
|
%
|
14.1
|
%
|
Armenia
|
23.9
|
%
|
23.6
|
%
|
29.7
|
%
|
23.0
|
%
|
21.0
|
%
|
19.6
|
%
|
Georgia
|
28.9
|
%
|
24.5
|
%
|
25.2
|
%
|
22.0
|
%
|
23.8
|
%
|
23.3
|
%
|
|
|
|
|
|
|
|
Assumption
|
Description
|
Discount rate
|
Discount rates are initially determined in US dollars based on the risk-free rate for 20-year maturity bonds of the United States Treasury, adjusted for a risk premium to reflect both the increased risk of investing in equities and the systematic risk of the specific CGU relative to the market as a whole.
The equity market risk premium used was 5.6% (2018: 5.4%, 2017: 6.0%). The systematic risk, beta, represents the median of the raw betas of the entities comparable in size and geographic footprint with the ones of the Company (“Peer Group”). The debt risk premium is based on the median of Standard & Poor’s long-term credit rating of the Peer Group. The weighted average cost of capital is determined based on target debt-to-equity ratios representing the median historical five-year capital structure for each entity from the Peer Group. The discount rate in functional currency of a CGU is adjusted for the long-term inflation forecast of the respective country in which the business operates, as well as applicable country risk premium. |
Projected revenue growth rates
|
The revenue growth rates vary based on numerous factors, including size of market, GDP (Gross Domestic Product), foreign currency projections, traffic growth, market share and others.
|
Projected average operating margin
|
The Company estimates operating margin based on pre-IFRS 16 Adjusted EBITDA divided by Total Operating Revenue for each CGU and each future year. The forecasted operating margin is based on the budget of the following year and assumes cost optimization initiatives which are part of on-going operations, as well as regulatory and technological changes known to date, such as telecommunication license issues and price regulation among others.
|
Average CAPEX excl licenses and ROU as a percentage of revenue
|
CAPEX excl licenses and ROU is defined as purchases of property and equipment and intangible assets other than licenses and goodwill. The cash flow forecasts for capital expenditure are based on past experience and amounts budgeted for the following year(s) and include the network roll-outs plans and license requirements.
|
Projected license and spectrum payments
|
The cash flow forecasts for license and spectrum payments for each operating company for the initial five years include amounts for expected renewals and newly available spectrum. Beyond that period, a long-run cost of spectrum is assumed.
|
Long-term growth rate
|
A long‑term growth rate into perpetuity is estimated based on a percentage that is lower than or equal to the country long-term inflation forecast, depending on the CGU.
|
CGU
|
Headroom
|
Discount rate
|
Average growth rate
|
Average operating margin
|
Average CAPEX excl licenses and ROU / revenue
|
Terminal growth rate
|
||||||
|
|
|
|
|
|
|
||||||
Algeria
|
102
|
|
(45
|
)
|
(80
|
)
|
—
|
|
—
|
|
(5
|
)
|
12
|
PROPERTY AND EQUIPMENT
|
Net book value
|
Telecomm-unications equipment
|
|
Land,
buildings and constructions |
|
Office and other equipment
|
|
Equipment not installed and assets under construction
|
|
Right-of-use assets
|
|
Total
|
|
|
|
|
|
|
|
|
||||||
As of January 1, 2018
|
5,132
|
|
240
|
|
470
|
|
395
|
|
—
|
|
6,237
|
|
|
|
|
|
|
|
|
||||||
Additions
|
52
|
|
8
|
|
14
|
|
1,173
|
|
—
|
|
1,247
|
|
Disposals
|
(51
|
)
|
(2
|
)
|
(10
|
)
|
(5
|
)
|
—
|
|
(68
|
)
|
Depreciation charge for the year
|
(1,165
|
)
|
(31
|
)
|
(143
|
)
|
—
|
|
—
|
|
(1,339
|
)
|
Impairment
|
(280
|
)
|
(10
|
)
|
(8
|
)
|
(37
|
)
|
—
|
|
(335
|
)
|
Transfers
|
979
|
|
22
|
|
136
|
|
(1,137
|
)
|
—
|
|
—
|
|
Reclassified to assets held for sale
|
(15
|
)
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
(16
|
)
|
Translation adjustment
|
(644
|
)
|
(24
|
)
|
(66
|
)
|
(60
|
)
|
—
|
|
(794
|
)
|
|
|
|
|
|
|
|
||||||
As of December 31, 2018
|
4,008
|
|
202
|
|
393
|
|
329
|
|
—
|
|
4,932
|
|
|
|
|
|
|
|
|
||||||
Adjustment due to IFRS 16
|
(71
|
)
|
—
|
|
—
|
|
—
|
|
2,023
|
|
1,952
|
|
Additions
|
80
|
|
—
|
|
8
|
|
1,453
|
|
158
|
|
1,699
|
|
Disposals
|
(36
|
)
|
(1
|
)
|
(6
|
)
|
(7
|
)
|
(35
|
)
|
(85
|
)
|
Depreciation charge for the year
|
(1,032
|
)
|
(33
|
)
|
(139
|
)
|
—
|
|
(448
|
)
|
(1,652
|
)
|
Impairment
|
(30
|
)
|
(1
|
)
|
(3
|
)
|
(17
|
)
|
—
|
|
(51
|
)
|
Transfers
|
1,210
|
|
29
|
|
131
|
|
(1,370
|
)
|
—
|
|
—
|
|
Modifications of right-of-use assets
|
—
|
|
—
|
|
—
|
|
—
|
|
141
|
|
141
|
|
Translation adjustment
|
177
|
|
20
|
|
33
|
|
28
|
|
146
|
|
404
|
|
|
|
|
|
|
|
|
||||||
As of December 31, 2019
|
4,306
|
|
216
|
|
417
|
|
416
|
|
1,985
|
|
7,340
|
|
Cost
|
11,799
|
|
493
|
|
1,467
|
|
563
|
|
2,472
|
|
16,794
|
|
Accumulated depreciation and impairment
|
(7,493
|
)
|
(277
|
)
|
(1,050
|
)
|
(147
|
)
|
(487
|
)
|
(9,454
|
)
|
|
|
|
|
|
|
|
Net book value
|
ROU - Telecommunications Equipment
|
|
ROU - Land, Buildings and Constructions
|
|
ROU - Office and Other Equipment
|
|
Total
|
|
|
|
|
|
|
||||
As of January 1, 2019
|
1,601
|
|
415
|
|
7
|
|
2,023
|
|
|
|
|
|
|
||||
Additions
|
142
|
|
16
|
|
—
|
|
158
|
|
Disposals
|
(27
|
)
|
(6
|
)
|
(2
|
)
|
(35
|
)
|
Depreciation charge for the year
|
(306
|
)
|
(140
|
)
|
(2
|
)
|
(448
|
)
|
Impairment
|
—
|
|
—
|
|
—
|
|
—
|
|
Transfers
|
18
|
|
(18
|
)
|
—
|
|
—
|
|
Modifications and reassessments
|
94
|
|
47
|
|
—
|
|
141
|
|
Translation adjustment
|
116
|
|
30
|
|
—
|
|
146
|
|
|
|
|
|
|
||||
As of December 31, 2019
|
1,638
|
|
344
|
|
3
|
|
1,985
|
|
Cost
|
1,980
|
|
487
|
|
5
|
|
2,472
|
|
Accumulated depreciation and impairment
|
(342
|
)
|
(143
|
)
|
(2
|
)
|
(487
|
)
|
|
|
|
|
|
|
|
2019
|
2018
|
|
|
|
|
Less than 1 year
|
|
677
|
433
|
Between 1 and 5 years
|
|
19
|
4
|
|
|
|
|
Total commitments
|
|
696
|
437
|
Class of property and equipment
|
Useful life
|
Telecommunication equipment
|
3 – 20 years
|
Buildings and constructions
|
10 – 50 years
|
Office and other equipment
|
3 – 10 years
|
Right-of-use assets
|
Equivalent lease term
|
13
|
INTANGIBLE ASSETS
|
Net book value
|
Telecommuni-cation licenses, frequencies & permissions
|
|
Software
|
|
Brands and trademarks
|
|
Customer relationships
|
|
Other intangible assets
|
|
Goodwill
|
|
Total
|
|
|
|
|
|
|
|
|
|
|||||||
As of January 1, 2018
|
1,256
|
|
351
|
|
262
|
|
255
|
|
44
|
|
4,618
|
|
6,786
|
|
|
|
|
|
|
|
|
|
|||||||
Additions
|
526
|
|
171
|
|
—
|
|
—
|
|
20
|
|
—
|
|
717
|
|
Disposals
|
(6
|
)
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(7
|
)
|
Amortization charge for the year
|
(176
|
)
|
(179
|
)
|
(74
|
)
|
(54
|
)
|
(12
|
)
|
—
|
|
(495
|
)
|
Impairment
|
(251
|
)
|
(48
|
)
|
—
|
|
—
|
|
—
|
|
(224
|
)
|
(523
|
)
|
Transfer
|
—
|
|
2
|
|
—
|
|
—
|
|
(2
|
)
|
—
|
|
—
|
|
Translation adjustment
|
(154
|
)
|
(32
|
)
|
(10
|
)
|
(24
|
)
|
(10
|
)
|
(578
|
)
|
(808
|
)
|
|
|
|
|
|
|
|
|
|||||||
As of December 31, 2018
|
1,195
|
|
264
|
|
178
|
|
177
|
|
40
|
|
3,816
|
|
5,670
|
|
|
|
|
|
|
|
|
|
|||||||
Adjustment due to IFRS 16
|
—
|
|
—
|
|
—
|
|
—
|
|
(15
|
)
|
—
|
|
(15
|
)
|
Additions
|
50
|
|
177
|
|
—
|
|
—
|
|
12
|
|
—
|
|
239
|
|
Disposals
|
—
|
|
—
|
|
—
|
|
—
|
|
(2
|
)
|
—
|
|
(2
|
)
|
Amortization charge for the year
|
(159
|
)
|
(155
|
)
|
(30
|
)
|
(42
|
)
|
(8
|
)
|
—
|
|
(394
|
)
|
Impairment
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(54
|
)
|
(57
|
)
|
Transfer
|
—
|
|
8
|
|
—
|
|
—
|
|
(8
|
)
|
—
|
|
—
|
|
Translation adjustment
|
17
|
|
22
|
|
1
|
|
7
|
|
3
|
|
197
|
|
247
|
|
|
|
|
|
|
|
|
|
|||||||
As of December 31, 2019
|
1,100
|
|
316
|
|
149
|
|
142
|
|
22
|
|
3,959
|
|
5,688
|
|
Cost
|
2,395
|
|
1,157
|
|
499
|
|
1,716
|
|
210
|
|
3,959
|
|
9,936
|
|
Accumulated amortization and impairment
|
(1,295
|
)
|
(841
|
)
|
(350
|
)
|
(1,574
|
)
|
(188
|
)
|
|
(4,248
|
)
|
|
|
|
|
|
|
|
|
|
CGU
|
December 31,
2019 |
|
Impairment
|
|
Currency translation
|
|
December 31,
2018 |
|
|
|
|
|
|
||||
Russia
|
2,265
|
|
—
|
|
247
|
|
2,018
|
|
Algeria
|
1,167
|
|
—
|
|
(9
|
)
|
1,176
|
|
Pakistan
|
335
|
|
—
|
|
(36
|
)
|
371
|
|
Kazakhstan
|
154
|
|
—
|
|
1
|
|
153
|
|
Kyrgyzstan
|
—
|
|
(54
|
)
|
—
|
|
54
|
|
Uzbekistan
|
38
|
|
—
|
|
(6
|
)
|
44
|
|
|
|
|
|
|
||||
Total
|
3,959
|
|
(54
|
)
|
197
|
|
3,816
|
|
CGU
|
December 31,
2018 |
|
Impairment
|
|
Translation adjustment
|
|
December 31,
2017 |
|
|
|
|
|
|
||||
Russia
|
2,018
|
|
—
|
|
(416
|
)
|
2,434
|
|
Algeria
|
1,176
|
|
(125
|
)
|
(39
|
)
|
1,340
|
|
Pakistan
|
371
|
|
—
|
|
(97
|
)
|
468
|
|
Kazakhstan
|
153
|
|
—
|
|
(24
|
)
|
177
|
|
Kyrgyzstan
|
54
|
|
(74
|
)
|
—
|
|
128
|
|
Uzbekistan
|
44
|
|
—
|
|
(2
|
)
|
46
|
|
Armenia
|
—
|
|
(25
|
)
|
—
|
|
25
|
|
|
|
|
|
|
||||
Total
|
3,816
|
|
(224
|
)
|
(578
|
)
|
4,618
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
||
Less than 1 year
|
|
77
|
|
23
|
|
Between 1 and 5 years
|
|
5
|
|
—
|
|
|
|
|
|
||
Total commitments
|
|
82
|
|
23
|
|
14
|
INVESTMENTS IN SUBSIDIARIES
|
|
|
|
Equity interest held by the Group
|
|||
Name of significant subsidiary
|
Country of incorporation
|
Nature of subsidiary
|
2019
|
|
2018
|
|
|
|
|
|
|
||
VEON Amsterdam B.V.
|
Netherlands
|
Holding
|
100.0
|
%
|
100.0
|
%
|
VEON Holdings B.V.
|
Netherlands
|
Holding
|
100.0
|
%
|
100.0
|
%
|
PJSC VimpelCom
|
Russia
|
Operating
|
100.0
|
%
|
100.0
|
%
|
JSC “Kyivstar”
|
Ukraine
|
Operating
|
100.0
|
%
|
100.0
|
%
|
LLP “KaR-Tel”
|
Kazakhstan
|
Operating
|
75.0
|
%
|
75.0
|
%
|
LLC “Unitel”
|
Uzbekistan
|
Operating
|
100.0
|
%
|
100.0
|
%
|
LLC “VEON Georgia”
|
Georgia
|
Operating
|
80.0
|
%
|
80.0
|
%
|
CJSC “VEON Armenia”
|
Armenia
|
Operating
|
100.0
|
%
|
100.0
|
%
|
LLC “Sky Mobile”
|
Kyrgyzstan
|
Operating
|
50.1
|
%
|
50.1
|
%
|
VEON Luxembourg Holdings S.à r.l.
|
Luxembourg
|
Holding
|
100.0
|
%
|
100.0
|
%
|
VEON Luxembourg Finance Holdings S.à r.l.
|
Luxembourg
|
Holding
|
100.0
|
%
|
100.0
|
%
|
VEON Luxembourg Finance S.A.
|
Luxembourg
|
Holding
|
100.0
|
%
|
100.0
|
%
|
Global Telecom Holding S.A.E
|
Egypt
|
Holding
|
99.5
|
%
|
57.7
|
%
|
Omnium Telecom Algérie S.p.A.*
|
Algeria
|
Holding
|
45.4
|
%
|
26.3
|
%
|
Optimum Telecom Algeria S.p.A.*
|
Algeria
|
Operating
|
45.4
|
%
|
26.3
|
%
|
Pakistan Mobile Communications Limited
|
Pakistan
|
Operating
|
85.0
|
%
|
49.0
|
%
|
Banglalink Digital Communications Limited
|
Bangladesh
|
Operating
|
100.0
|
%
|
57.7
|
%
|
|
|
|
|
|
|
Equity interest
held by NCIs |
Book values of
material NCIs |
Profit / (loss) attributable to material NCIs
|
|||||||||
Name of significant subsidiary
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
||||||
LLP “KaR-Tel” (“Kar-Tel”)
|
25.0
|
%
|
25.0
|
%
|
232
|
|
228
|
|
27
|
|
19
|
|
LLC “Sky Mobile” (“Sky Mobile”)
|
49.9
|
%
|
49.9
|
%
|
79
|
|
133
|
|
(44
|
)
|
(32
|
)
|
Global Telecom Holding S.A.E (“GTH”)
|
0.5
|
%
|
42.3
|
%
|
853
|
|
(1,190
|
)
|
75
|
|
(204
|
)
|
Omnium Telecom Algérie S.p.A. (“OTA”)
|
54.4
|
%
|
73.7
|
%
|
871
|
|
1,091
|
|
55
|
|
1
|
|
|
|
|
|
|
|
|
|
Kar-Tel
|
Sky Mobile
|
GTH
|
OTA
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating revenue
|
461
|
|
410
|
|
348
|
|
63
|
|
81
|
|
108
|
|
2,051
|
|
2,828
|
|
3,015
|
|
775
|
|
813
|
|
915
|
|
Operating expenses
|
(319
|
)
|
(319
|
)
|
(296
|
)
|
(150
|
)
|
(144
|
)
|
(97
|
)
|
(1,595
|
)
|
(2,810
|
)
|
(2,421
|
)
|
(621
|
)
|
(754
|
)
|
(703
|
)
|
Other (expenses) / income
|
(6
|
)
|
6
|
|
(7
|
)
|
(1
|
)
|
—
|
|
(2
|
)
|
947
|
*
|
(377
|
)
|
(450
|
)
|
(17
|
)
|
(11
|
)
|
(27
|
)
|
Profit / (loss) before tax
|
136
|
|
97
|
|
45
|
|
(88
|
)
|
(63
|
)
|
9
|
|
1,403
|
|
(359
|
)
|
144
|
|
137
|
|
48
|
|
185
|
|
Income tax expense
|
(29
|
)
|
(20
|
)
|
(13
|
)
|
—
|
|
(1
|
)
|
(4
|
)
|
(136
|
)
|
(124
|
)
|
(375
|
)
|
(36
|
)
|
(47
|
)
|
(49
|
)
|
Profit / (loss) for the year
|
107
|
|
77
|
|
32
|
|
(88
|
)
|
(64
|
)
|
5
|
|
1,267
|
|
(483
|
)
|
(231
|
)
|
101
|
|
1
|
|
136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total comprehensive income / (loss)
|
107
|
|
77
|
|
32
|
|
(88
|
)
|
(64
|
)
|
5
|
|
1,267
|
|
(483
|
)
|
(231
|
)
|
101
|
|
1
|
|
136
|
|
Attributed to NCIs
|
27
|
|
19
|
|
8
|
|
(44
|
)
|
(32
|
)
|
3
|
|
75
|
|
(204
|
)
|
(56
|
)
|
55
|
|
1
|
|
100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Dividends paid to NCIs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
95
|
|
80
|
|
116
|
|
69
|
|
76
|
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kar-Tel
|
Sky Mobile
|
GTH *
|
OTA
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Property and equipment
|
271
|
|
192
|
|
50
|
|
76
|
|
608
|
|
1,652
|
|
600
|
|
498
|
|
Intangible assets
|
86
|
|
69
|
|
5
|
|
10
|
|
160
|
|
1,042
|
|
158
|
|
214
|
|
Other non-current assets
|
185
|
|
177
|
|
3
|
|
55
|
|
2,797
|
|
1,766
|
|
1,187
|
|
1,178
|
|
Trade and other receivables
|
18
|
|
13
|
|
4
|
|
3
|
|
146
|
|
263
|
|
34
|
|
48
|
|
Cash and cash equivalents
|
39
|
|
29
|
|
21
|
|
43
|
|
165
|
|
420
|
|
67
|
|
53
|
|
Other current assets
|
12
|
|
15
|
|
18
|
|
12
|
|
97
|
|
317
|
|
42
|
|
88
|
|
Debt and derivatives
|
(63
|
)
|
—
|
|
(7
|
)
|
—
|
|
(1,375
|
)
|
(2,938
|
)
|
(134
|
)
|
(63
|
)
|
Provisions
|
(6
|
)
|
(4
|
)
|
(1
|
)
|
(2
|
)
|
(70
|
)
|
(312
|
)
|
(22
|
)
|
(25
|
)
|
Other liabilities
|
(119
|
)
|
(85
|
)
|
(24
|
)
|
(19
|
)
|
(585
|
)
|
(1,690
|
)
|
(334
|
)
|
(355
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Total equity
|
423
|
|
406
|
|
69
|
|
178
|
|
1,943
|
|
520
|
|
1,598
|
|
1,636
|
|
|
|
|
|
|
|
|
|
|
||||||||
Attributed to:
|
|
|
|
|
|
|
|
|
||||||||
Equity holders of the parent
|
191
|
|
178
|
|
(10
|
)
|
45
|
|
1,090
|
|
1,710
|
|
727
|
|
545
|
|
Non-controlling interests
|
232
|
|
228
|
|
79
|
|
133
|
|
853
|
|
(1,190
|
)
|
871
|
|
1,091
|
|
|
|
|
|
|
|
|
|
|
|
Kar-Tel
|
Sky Mobile
|
GTH
|
OTA
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net operating cash flows
|
199
|
|
148
|
|
105
|
|
17
|
|
29
|
|
23
|
|
691
|
|
900
|
|
877
|
|
305
|
|
245
|
|
345
|
|
Net investing cash flows
|
(84
|
)
|
(42
|
)
|
(73
|
)
|
(15
|
)
|
(18
|
)
|
(24
|
)
|
(529
|
)
|
(695
|
)
|
(924
|
)
|
(84
|
)
|
(118
|
)
|
(172
|
)
|
Net financing cash flows
|
(104
|
)
|
(90
|
)
|
(48
|
)
|
(24
|
)
|
—
|
|
—
|
|
(395
|
)
|
(110
|
)
|
(157
|
)
|
(205
|
)
|
(193
|
)
|
(350
|
)
|
Net foreign exchange difference
|
—
|
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(23
|
)
|
(60
|
)
|
(18
|
)
|
(1
|
)
|
(5
|
)
|
(7
|
)
|
Net increase / (decrease) in cash equivalents
|
11
|
|
13
|
|
(16
|
)
|
(22
|
)
|
11
|
|
(1
|
)
|
(256
|
)
|
35
|
|
(222
|
)
|
15
|
|
(71
|
)
|
(184
|
)
|
15
|
INVESTMENTS, DEBT AND DERIVATIVES
|
|
Carrying value
|
|||
|
2019
|
|
2018
|
|
|
|
|
||
At fair value through profit or loss
|
|
|
||
Derivatives not designated as hedges
|
11
|
|
14
|
|
Derivatives designated as net investment hedges
|
—
|
|
45
|
|
Investments in debt instruments *
|
34
|
|
36
|
|
Other
|
—
|
|
3
|
|
|
45
|
|
98
|
|
|
|
|
||
At amortized cost
|
|
|
||
Security deposits and cash collateral
|
256
|
|
31
|
|
Other investments
|
16
|
|
17
|
|
|
272
|
|
48
|
|
|
|
|
||
Total investments and derivatives
|
317
|
|
146
|
|
Non-current
|
235
|
|
58
|
|
Current
|
82
|
|
88
|
|
|
|
|
|
Carrying value
|
|||
|
2019
|
|
2018
|
|
|
|
|
||
At fair value through profit or loss
|
|
|
||
Derivatives not designated as hedges
|
52
|
|
65
|
|
Derivatives designated as net investment hedges
|
161
|
|
—
|
|
Contingent consideration
|
41
|
|
40
|
|
Other
|
—
|
|
2
|
|
|
254
|
|
107
|
|
|
|
|
||
At amortized cost
|
|
|
||
Principal amount outstanding
|
7,519
|
|
7,298
|
|
Interest accrued
|
79
|
|
81
|
|
Discounts, unamortized fees, hedge basis adjustment
|
(10
|
)
|
(13
|
)
|
Bank loans and bonds
|
7,588
|
|
7,366
|
|
|
|
|
||
Lease liabilities
|
2,083
|
|
—
|
|
Put-option liability over non-controlling interest
|
342
|
|
306
|
|
Other financial liabilities
|
77
|
|
77
|
|
|
10,090
|
|
7,749
|
|
|
|
|
||
Total debt and derivatives
|
10,344
|
|
7,856
|
|
Non-current
|
7,759
|
|
6,567
|
|
Current
|
2,585
|
|
1,289
|
|
|
|
|
|
|
|
|
|
|
Principal amount outstanding
|
|||
Borrower
|
Type of debt
|
Guarantor
|
Currency
|
Interest rate
|
Maturity
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
||
VEON Holdings
|
Loans
|
None
|
RUB
|
8.75% to 10.0%
|
2022
|
2,303
|
|
2,051
|
|
VEON Holdings
|
Notes
|
None
|
US$
|
5.2% to 5.95%
|
2019 - 2023
|
529
|
|
1,100
|
|
VEON Holdings
|
Notes
|
None
|
US$
|
3.95% to 4.95%
|
2021 - 2024
|
1,133
|
|
1,133
|
|
VEON Holdings
|
Notes
|
PJSC VimpelCom
|
US$
|
7.50%
|
2022
|
417
|
|
417
|
|
VEON Holdings
|
Notes
|
None
|
US$
|
4.00 %
|
2025
|
700
|
|
—
|
|
GTH Finance B.V.
|
Notes
|
VEON Holdings
|
US$
|
6.25% to 7.25%
|
2020 -2023
|
1,200
|
|
1,200
|
|
PJSC VimpelCom, via VIP Finance Ireland
|
Eurobonds
|
None
|
US$
|
7.75 %
|
2021
|
262
|
|
262
|
|
PMCL
|
Loans
|
None
|
PKR
|
6mKIBOR +
0.35% to 0.8% |
2020 -2022
|
226
|
|
256
|
|
PMCL
|
Loan
|
EKN *
|
US$
|
6mLIBOR + 1.9%
|
2020
|
75
|
|
137
|
|
PMCL
|
Loan
|
None
|
PKR
|
6mKIBOR + 0.75%
|
2026
|
121
|
|
—
|
|
Banglalink
|
Loan
|
None
|
US$
|
3mLIBOR + 2.50%
|
2020
|
300
|
|
—
|
|
Banglalink
|
Notes
|
None
|
US$
|
8.63%
|
2019
|
—
|
|
300
|
|
Banglalink
|
Loans
|
None
|
BDT
|
Average bank deposit rate + 3.0% to 4.25%
|
2020 - 2022
|
116
|
|
146
|
|
|
|
|
|
|
|
|
|
||
|
Other bank loans and bonds
|
|
|
|
137
|
|
296
|
|
|
|
|
|
|
|
|
|
|
||
|
Total bank loans and bonds
|
|
|
7,519
|
|
7,298
|
|
|
Bank loans and bonds
|
|
Lease liabilities
|
|
Total
|
|
|
|
|
|
|||
Balance as of January 1, 2018
|
11,198
|
|
—
|
|
11,198
|
|
|
|
|
|
|||
Cash flows
|
|
|
|
|||
Proceeds from borrowings, net of fees paid
|
807
|
|
—
|
|
807
|
|
Repayment of debt
|
(4,122
|
)
|
—
|
|
(4,122
|
)
|
Interest paid
|
(736
|
)
|
—
|
|
(736
|
)
|
|
|
|
|
|||
Non-cash movements
|
|
|
|
|||
Interest and fee accruals
|
738
|
|
—
|
|
738
|
|
Early redemption premium accrued *
|
44
|
|
—
|
|
44
|
|
Foreign currency translation
|
(573
|
)
|
—
|
|
(573
|
)
|
Other non-cash movements
|
10
|
|
—
|
|
10
|
|
|
|
|
|
|||
Balance as of December 31, 2018
|
7,366
|
|
—
|
|
7,366
|
|
|
|
|
|
|||
Adjustment due to new accounting standards
|
—
|
|
1,999
|
|
1,999
|
|
|
|
|
|
|||
Balance as of January 1, 2019
|
7,366
|
|
1,999
|
|
9,365
|
|
|
|
|
|
|||
Cash flows
|
|
|
|
|||
Proceeds from borrowings, net of fees paid
|
2,610
|
|
—
|
|
2,610
|
|
Repayment of debt
|
(2,612
|
)
|
(366
|
)
|
(2,978
|
)
|
Interest paid
|
(566
|
)
|
(148
|
)
|
(714
|
)
|
|
|
|
|
|||
Non-cash movements
|
|
|
|
|||
Interest and fee accruals
|
599
|
|
178
|
|
777
|
|
Lease additions, disposals, impairment and modifications
|
—
|
|
262
|
|
262
|
|
Foreign currency translation
|
193
|
|
158
|
|
351
|
|
Other non-cash movements
|
(2
|
)
|
—
|
|
(2
|
)
|
|
|
|
|
|||
Balance as of December 31
|
7,588
|
|
2,083
|
|
9,671
|
|
•
|
'Bank loans and bonds, including interest accrued', for which fair value is equal to US$7,887 (2018: US$7,430); and
|
•
|
'Lease liabilities', for which fair value has not been determined.
|
Hedging instruments *
|
Designated rate
|
Excluded component
|
Hedged
item |
Currency
|
Aggregated designated nominal value of hedged items, million
|
|
||
|
|
|
|
|
2019
|
|
2018
|
|
Foreign currency forward contracts
|
Forward
|
foreign currency basis spread
|
PJSC VimpelCom
|
RUB
|
88,220
|
**
|
68,639
|
**
|
|
|
|
|
|
|
|
•
|
the value of a net investment falling below the related designated nominal value of the hedging instrument, or
|
•
|
counterparties’ credit risk impacting the hedging instrument but not the hedged net investment.
|
|
Foreign currency translation reserve
|
|
Cost of hedging reserve **
|
|
|
|
|
||
As of January 1, 2018
|
(7,667
|
)
|
—
|
|
|
|
|
||
Foreign currency revaluation of the foreign operations and other
|
(753
|
)
|
—
|
|
Effective portion of foreign currency revaluation of the hedging instruments *
|
83
|
|
—
|
|
Change in fair value of foreign currency basis spreads
|
—
|
|
(4
|
)
|
Amortization of time-period related foreign currency basis spreads
|
—
|
|
5
|
|
Net investment hedge amount reclassified to profit or loss – sale of Italy Joint Venture
|
80
|
|
4
|
|
Disposal of subsidiaries – reclassification to profit or loss
|
(159
|
)
|
—
|
|
|
|
|
||
As of December 31, 2018
|
(8,416
|
)
|
5
|
|
|
|
|
||
Foreign currency revaluation of the foreign operations
|
332
|
|
—
|
|
Effective portion of foreign currency revaluation of the hedging instruments *
|
(228
|
)
|
—
|
|
Change in fair value of foreign currency basis spreads
|
—
|
|
23
|
|
Amortization of time-period related foreign currency basis spreads
|
—
|
|
(19
|
)
|
|
|
|
||
As of December 31, 2019
|
(8,312
|
)
|
9
|
|
16
|
CASH AND CASH EQUIVALENTS
|
|
|
2019
|
|
2018
|
|
|
|
|
|
||
Cash and cash equivalents at banks and on hand
|
|
932
|
|
756
|
|
Cash equivalents with original maturity of less than three months
|
|
318
|
|
1,052
|
|
Cash and cash equivalents
|
|
1,250
|
|
1,808
|
|
Less overdrafts
|
|
(46
|
)
|
(17
|
)
|
Cash and cash equivalents, net of overdrafts, as presented in the consolidated statement of cash flows
|
|
1,204
|
|
1,791
|
|
17
|
FINANCIAL RISK MANAGEMENT
|
|
Amounts in millions of transactional currency
|
US$ equivalent amounts
|
|||||
|
Final availability period
|
Facility amount
|
Utilized
|
Available
|
Facility amount
|
Utilized
|
Available
|
2019
|
|
|
|
|
|
|
|
VEON Holdings B.V. – Revolving Credit Facility
|
Feb 2022
|
US$1,688 *
|
—
|
US$1,688
|
1,688
|
—
|
1,688
|
PMCL - Syndicated Term Facility and Islamic Finance Facility
|
Mar 2020
|
PKR 45,000
|
PKR 15,885
|
PKR 29,115
|
291
|
103
|
188
|
PMCL - Term Facility
|
Sep 2020
|
PKR 14,369
|
PKR 2,963
|
PKR 11,406
|
93
|
19
|
74
|
|
|
|
|
|
|
|
|
|
Amounts in millions of transactional currency
|
US$ equivalent amounts
|
|||||
|
Final availability period
|
Facility amount
|
Utilized
|
Available
|
Facility amount
|
Utilized
|
Available
|
2018
|
|
|
|
|
|
|
|
VEON Holdings B.V. – Revolving Credit Facility
|
Feb 2022
|
US$1,688
|
—
|
US$1,688
|
1,688
|
—
|
1,688
|
PMCL - Syndicated Term Loan Facility
|
Jun 2019
|
PKR 26,750
|
PKR 17,000
|
PKR 9,750
|
191
|
122
|
69
|
PMCL - Term Loan Facility
|
Jun 2019
|
PKR 10,000
|
PKR 5,463
|
PKR 4,537
|
72
|
39
|
33
|
|
|
|
|
|
|
|
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
|
Total
|
|
As of December 31, 2019
|
|
|
|
|
|
|||||
Bank loans and bonds
|
2,100
|
|
3,909
|
|
2,009
|
|
794
|
|
8,812
|
|
Lease liabilities
|
581
|
|
920
|
|
728
|
|
420
|
|
2,649
|
|
Derivative financial liabilities
|
|
|
|
|
|
|||||
Gross cash inflows
|
(1,150
|
)
|
(378
|
)
|
—
|
|
—
|
|
(1,528
|
)
|
Gross cash outflows
|
1,311
|
|
483
|
|
—
|
|
—
|
|
1,794
|
|
Trade and other payables
|
1,847
|
|
—
|
|
—
|
|
—
|
|
1,847
|
|
Other financial liabilities
|
41
|
|
77
|
|
—
|
|
—
|
|
118
|
|
Warid non-controlling interest put option liability
|
342
|
|
—
|
|
—
|
|
—
|
|
342
|
|
Total financial liabilities
|
5,072
|
|
5,011
|
|
2,737
|
|
1,214
|
|
14,034
|
|
|
|
|
|
|
|
|||||
Related derivatives financial assets
|
|
|
|
|
|
|||||
Gross cash inflows
|
(273
|
)
|
—
|
|
—
|
|
—
|
|
(273
|
)
|
Gross cash outflows
|
262
|
|
—
|
|
—
|
|
—
|
|
262
|
|
Related derivative financial assets
|
(11
|
)
|
—
|
|
—
|
|
—
|
|
(11
|
)
|
|
|
|
|
|
|
|||||
Total financial liabilities, net of derivative assets
|
5,061
|
|
5,011
|
|
2,737
|
|
1,214
|
|
14,023
|
|
|
Less than 1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than 5 years
|
|
Total
|
|
As of December 31, 2018
|
|
|
|
|
|
|||||
Bank loans and bonds
|
1,697
|
|
3,866
|
|
2,642
|
|
579
|
|
8,784
|
|
Derivative financial liabilities
|
|
|
|
|
|
|||||
Gross cash inflows
|
(368
|
)
|
(54
|
)
|
—
|
|
—
|
|
(422
|
)
|
Gross cash outflows
|
394
|
|
68
|
|
—
|
|
—
|
|
462
|
|
Trade and other payables *
|
1,624
|
|
—
|
|
—
|
|
—
|
|
1,624
|
|
Other financial liabilities
|
—
|
|
62
|
|
—
|
|
—
|
|
62
|
|
Warid non-controlling interest put option liability
|
—
|
|
306
|
|
—
|
|
—
|
|
306
|
|
Total financial liabilities
|
3,347
|
|
4,248
|
|
2,642
|
|
579
|
|
10,816
|
|
|
|
|
|
|
|
|||||
Related derivatives financial assets
|
|
|
|
|
|
|||||
Gross cash inflows
|
(300
|
)
|
(610
|
)
|
(330
|
)
|
—
|
|
(1,240
|
)
|
Gross cash outflows
|
286
|
|
634
|
|
354
|
|
—
|
|
1,274
|
|
Related derivative financial assets
|
(14
|
)
|
24
|
|
24
|
|
—
|
|
34
|
|
|
|
|
|
|
|
|||||
Total financial liabilities, net of derivative assets
|
3,333
|
|
4,272
|
|
2,666
|
|
579
|
|
10,850
|
|
18
|
ISSUED CAPITAL AND RESERVES
|
|
2019
|
|
2018
|
|
|
|
|
||
Authorized common shares (nominal value of US$0.001 per share)
|
1,849,190,670
|
|
1,849,190,670
|
|
|
|
|
||
Issued shares, including 7,603,731 shares held by a subsidiary of the Company
|
1,756,731,135
|
|
1,756,731,135
|
|
|
|
|
Shareholder
|
Common shares
|
|
% of common and voting shares
|
|
|
|
|
||
L1T VIP Holdings S.à r.l. (“LetterOne”)
|
840,625,001
|
|
47.9
|
%
|
Stichting Administratiekantoor Mobile Telecommunications Investor *
|
145,947,562
|
|
8.3
|
%
|
Free Float, including 7,603,731 shares held by a subsidiary of the Company
|
770,158,572
|
|
43.8
|
%
|
Total outstanding common shares
|
1,756,731,135
|
|
100.0
|
%
|
|
|
|
19
|
EARNINGS PER SHARE
|
Continuing operations
|
|
2019
|
|
2018
|
|
2017
|
|
|||
(In millions of U.S. dollars, except share and per share amounts)
|
|
|
|
|
||||||
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
||||||
Profit / (loss) for the period attributable to the owners of the parent
|
|
621
|
|
(397
|
)
|
(115
|
)
|
|||
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
||||||
Weighted average common shares outstanding for basic earnings per share (in millions)
|
|
1,749
|
|
1,749
|
|
1,749
|
|
|||
Denominator for diluted earnings per share (in millions)
|
|
1,749
|
|
1,749
|
|
1,749
|
|
|||
|
|
|
|
|
||||||
Basic (loss) / earnings per share
|
|
|
$0.36
|
|
|
($0.23
|
)
|
|
($0.07
|
)
|
Diluted (loss) / earnings per share
|
|
|
$0.36
|
|
|
($0.23
|
)
|
|
($0.07
|
)
|
Discontinued operations
|
|
2019
|
|
2018
|
|
2017
|
|
|||
|
|
|
|
|
||||||
(In millions of U.S. dollars, except share and per share amounts)
|
|
|
|
|
||||||
|
|
|
|
|
||||||
Numerator:
|
|
|
|
|
||||||
Profit / (loss) for the period attributable to the owners of the parent
|
|
—
|
|
979
|
|
(390
|
)
|
|||
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
||||||
Weighted average common shares outstanding for basic earnings per share (in millions)
|
|
1,749
|
|
1,749
|
|
1,749
|
|
|||
Denominator for diluted earnings per share (in millions)
|
|
1,749
|
|
1,749
|
|
1,749
|
|
|||
|
|
|
|
|
||||||
Basic (loss) / earnings per share
|
|
|
$0.00
|
|
|
$0.56
|
|
|
($0.22
|
)
|
Diluted (loss) / earnings per share
|
|
|
$0.00
|
|
|
$0.56
|
|
|
($0.22
|
)
|
20
|
DIVIDENDS PAID AND PROPOSED
|
(a)
|
VEON is, or would after the payment be, unable to pay its liabilities as they become due, or
|
(b)
|
the realizable value of VEON assets would, as a result of the dividend, be less than the aggregate of VEON liabilities.
|
Description
|
Dividends declared
|
Dividends paid
|
Dividends, US$ cents per share
|
|
|
|
|
Final for 2019
|
February 2020
|
Expected March 2020
|
15
|
Interim for 2019
|
August 2019
|
August 2019
|
13
|
|
|
|
|
Final for 2018
|
February 2019
|
March 2019
|
17
|
Interim for 2018
|
August 2018
|
August 2018
|
12
|
|
|
|
|
Name of subsidiary
|
Dividend declared
|
Dividend paid
|
Paid or payable to non-controlling interests
|
|
|
|
|
|
|
Omnium Telecom Algeria S.p.A
|
June 2019
|
September 2019
|
69
|
|
VIP Kazakhstan Holding AG
|
January 2019
|
January 2019
|
24
|
|
TNS Plus LLP
|
April 2019
|
April 2019
|
12
|
|
Rascom CJSC
|
June 2019
|
August 2019
|
3
|
|
Total for 2019
|
|
|
108
|
|
|
|
|
|
|
Omnium Telecom Algeria S.p.A
|
June 2018
|
August 2018
|
76
|
|
TNS Plus LLP
|
April 2018
|
April 2018
|
11
|
|
TNS Plus LLP
|
April 2018
|
August 2018
|
2
|
|
Rascom CJSC
|
June 2018
|
July 2018
|
2
|
|
Buzton LLC
|
July 2018
|
September 2018
|
2
|
|
Total for 2018
|
|
|
93
|
|
|
|
|
|
|
VIP Kazakhstan Holding AG
|
October 2017
|
October 2017
|
11
|
|
Omnium Telecom Algeria S.p.A
|
June 2017
|
August 2017
|
82
|
|
TNS Plus LLP
|
May 2017
|
May 2017
|
12
|
|
VIP Kyrgyzstan Holding AG
|
February 2017
|
February 2017
|
55
|
|
TNS Plus LLP
|
January 2017
|
January 2017
|
8
|
|
Total for 2017
|
|
|
168
|
|
21
|
RELATED PARTIES
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|||
Short-term employee benefits
|
48
|
|
33
|
|
42
|
|
Long-term employee benefits
|
—
|
|
—
|
|
1
|
|
Share-based payments
|
3
|
|
—
|
|
1
|
|
Termination benefits
|
—
|
|
2
|
|
1
|
|
Total compensation to directors and senior management *
|
51
|
|
35
|
|
45
|
|
In whole euros
|
Ursula Burns
|
Jean-Yves Charlier
|
Trond Westlie
|
Murat Kirkgoz
|
Kjell Johnsen
|
Kaan Terzioglu
|
Sergi Herrero
|
Scott Dresser
|
||||||||
Group CEO
|
Group CEO
|
Group CFO(v)
|
Deputy Group CFO(v)
|
Group COO(vi)
|
Joint Group COO(vi)
|
Joint Group COO(vi)
|
Group General Counsel
|
|||||||||
2019
|
|
|
|
|
|
|
|
|
||||||||
Short-term employee benefits
|
|
|
|
|
|
|
|
|
||||||||
Base salary(i)
|
5,500,000
|
|
—
|
|
1,500,000
|
|
264,500
|
|
1,250,000
|
|
220,500
|
|
342,036
|
|
1,300,000
|
|
Annual incentive(ii)
|
10,461,000
|
|
—
|
|
1,455,216
|
|
211,713
|
|
4,184,355
|
|
472,151
|
|
514,460
|
|
2,258,882
|
|
Other(iii)
|
1,146,503
|
|
—
|
|
24,100
|
|
35,750
|
|
46,857
|
|
105,999
|
|
1,560,229
|
|
29,100
|
|
Long-term employee benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Share-based payments(iv)
|
—
|
|
—
|
|
64,842
|
|
8,242
|
|
(828,047
|
)
|
—
|
|
—
|
|
(697,504
|
)
|
Termination benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total remuneration expense
|
17,107,503
|
|
—
|
|
3,044,158
|
|
520,205
|
|
4,653,165
|
|
798,650
|
|
2,416,725
|
|
2,890,478
|
|
|
|
|
|
|
|
|
|
|
||||||||
2019
|
|
|
|
|
|
|
|
|
||||||||
Short-term employee benefits
|
|
|
|
|
|
|
|
|
||||||||
Base salary(i)
|
5,500,000
|
|
—
|
|
1,500,000
|
|
264,500
|
|
1,250,000
|
|
220,500
|
|
342,036
|
|
1,300,000
|
|
Annual incentive(ii)
|
5,472,400
|
|
—
|
|
1,412,613
|
|
—
|
|
3,766,855
|
|
—
|
|
—
|
|
2,470,653
|
|
Other(iii)
|
1,146,503
|
|
—
|
|
24,100
|
|
35,750
|
|
46,857
|
|
105,999
|
|
1,560,229
|
|
29,100
|
|
Long-term employee benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Share-based payments
|
2,791,290
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Termination benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total remuneration paid
|
14,910,193
|
|
—
|
|
2,936,713
|
|
300,250
|
|
5,063,712
|
|
326,499
|
|
1,902,265
|
|
3,799,753
|
|
|
|
|
|
|
|
|
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
||||||||
Short-term employee benefits
|
|
|
|
|
|
|
|
|
||||||||
Base salary(i)
|
4,602,902
|
|
1,902,600
|
|
1,500,000
|
|
—
|
|
1,425,000
|
|
—
|
|
—
|
|
1,233,333
|
|
Annual incentive(ii)
|
—
|
|
7,717,900
|
|
127,313
|
|
—
|
|
—
|
|
—
|
|
—
|
|
405,899
|
|
Other(iii)
|
104,645
|
|
489,070
|
|
21,695
|
|
—
|
|
70,442
|
|
—
|
|
—
|
|
927,489
|
|
Long-term employee benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Share-based payments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Termination benefits
|
—
|
|
1,340,278
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total remuneration paid
|
4,707,547
|
|
11,449,848
|
|
1,649,008
|
|
—
|
|
1,495,442
|
|
—
|
|
—
|
|
2,566,721
|
|
In whole US dollars
|
Ursula Burns
|
Jean-Yves Charlier
|
Trond Westlie
|
Murat Kirkgoz
|
Kjell Johnsen
|
Kaan Terzioglu
|
Sergi Herrero
|
Scott Dresser
|
||||||||
Group CEO
|
Group CEO
|
Group CFO(v)
|
Deputy Group CFO(v)
|
Group COO(vi)
|
Joint Group COO(vi)
|
Joint Group COO(vi)
|
Group General Counsel
|
|||||||||
2019
|
|
|
|
|
|
|
|
|
||||||||
Short-term employee benefits
|
|
|
|
|
|
|
|
|
||||||||
Base salary(i)
|
6,155,568
|
|
—
|
|
1,678,791
|
|
296,027
|
|
1,398,993
|
|
246,782
|
|
382,805
|
|
1,454,952
|
|
Annual incentive(ii)
|
11,707,890
|
|
—
|
|
1,628,669
|
|
236,948
|
|
4,683,106
|
|
528,429
|
|
575,781
|
|
2,528,128
|
|
Other(iii)
|
1,283,159
|
|
—
|
|
26,973
|
|
40,011
|
|
52,442
|
|
118,633
|
|
1,746,199
|
|
32,569
|
|
Long-term employee benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Share-based payments(iv)
|
—
|
|
—
|
|
72,571
|
|
9,224
|
|
(926,745
|
)
|
—
|
|
—
|
|
(780,642
|
)
|
Termination benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total remuneration expense
|
19,146,617
|
|
—
|
|
3,407,004
|
|
582,210
|
|
5,207,796
|
|
893,844
|
|
2,704,785
|
|
3,235,007
|
|
|
|
|
|
|
|
|
|
|
||||||||
2019
|
|
|
|
|
|
|
|
|
||||||||
Short-term employee benefits
|
|
|
|
|
|
|
|
|
||||||||
Base salary(i)
|
6,155,568
|
|
—
|
|
1,678,791
|
|
296,027
|
|
1,398,993
|
|
246,782
|
|
382,800
|
|
1,454,952
|
|
Annual incentive(ii)
|
6,124,678
|
|
—
|
|
1,580,988
|
|
—
|
|
4,215,842
|
|
—
|
|
—
|
|
2,765,140
|
|
Other(iii)
|
1,283,160
|
|
—
|
|
26,973
|
|
40,011
|
|
52,442
|
|
118,633
|
|
1,746,175
|
|
32,569
|
|
Long-term employee benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Share-based payments
|
3,123,996
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Termination benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total remuneration paid
|
16,687,402
|
|
—
|
|
3,286,752
|
|
336,038
|
|
5,667,277
|
|
365,415
|
|
2,128,975
|
|
4,252,661
|
|
|
|
|
|
|
|
|
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
||||||||
Short-term employee benefits
|
|
|
|
|
|
|
|
|
||||||||
Base salary(i)
|
5,429,871
|
|
2,244,426
|
|
1,769,494
|
|
—
|
|
1,681,019
|
|
—
|
|
—
|
|
1,454,917
|
|
Annual incentive(ii)
|
—
|
|
9,104,518
|
|
150,186
|
|
—
|
|
—
|
|
—
|
|
—
|
|
478,824
|
|
Other(iii)
|
123,446
|
|
576,938
|
|
25,593
|
|
—
|
|
83,098
|
|
—
|
|
—
|
|
1,094,124
|
|
Long-term employee benefits
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Share-based payments
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Termination benefits
|
—
|
|
1,581,076
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total remuneration paid
|
5,553,317
|
|
13,506,958
|
|
1,945,273
|
|
—
|
|
1,764,117
|
|
—
|
|
—
|
|
3,027,865
|
|
|
Retainer
|
Committees
|
Other compensation
|
Total
|
||||||||||||
In whole euros
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
||||||||
Guillaume Bacuvier
|
250,000
|
|
105,000
|
|
53,909
|
|
21,000
|
|
—
|
|
—
|
|
303,909
|
|
126,000
|
|
Osama Bedier
|
250,000
|
|
105,000
|
|
25,000
|
|
10,500
|
|
—
|
|
—
|
|
275,000
|
|
115,500
|
|
Ursula Burns *
|
—
|
|
—
|
|
5,952
|
|
—
|
|
—
|
|
—
|
|
5,952
|
|
—
|
|
Stan Chudnovsky
|
—
|
|
145,833
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
145,833
|
|
Mikhail Fridman
|
40,000
|
|
40,000
|
|
—
|
|
—
|
|
—
|
|
—
|
|
40,000
|
|
40,000
|
|
Gennady Gazin
|
250,000
|
|
250,000
|
|
80,000
|
|
65,500
|
|
—
|
|
—
|
|
330,000
|
|
315,500
|
|
Andrei Gusev
|
40,000
|
|
40,000
|
|
—
|
|
—
|
|
750,000
|
|
—
|
|
790,000
|
|
40,000
|
|
Gunnar Holt
|
250,000
|
|
250,000
|
|
69,643
|
|
50,000
|
|
—
|
|
—
|
|
319,643
|
|
300,000
|
|
Sir Julian Horn-Smith
|
250,000
|
|
250,000
|
|
25,000
|
|
10,500
|
|
—
|
|
—
|
|
275,000
|
|
260,500
|
|
Jørn P. Jensen
|
—
|
|
163,333
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
163,333
|
|
Robert Jan van de Kraats
|
250,000
|
|
105,000
|
|
30,000
|
|
12,600
|
|
—
|
|
—
|
|
280,000
|
|
117,600
|
|
Guy Laurence
|
250,000
|
|
250,000
|
|
30,000
|
|
41,600
|
|
—
|
|
16,250
|
|
280,000
|
|
307,850
|
|
Alexander Pertsovsky
|
40,000
|
|
40,000
|
|
—
|
|
—
|
|
—
|
|
—
|
|
40,000
|
|
40,000
|
|
Kaan Terzioglu
|
92,708
|
|
—
|
|
9,063
|
|
—
|
|
—
|
|
—
|
|
101,771
|
|
—
|
|
Total compensation
|
1,962,708
|
|
1,744,166
|
|
328,567
|
|
211,700
|
|
750,000
|
|
16,250
|
|
3,041,275
|
|
1,972,116
|
|
|
Retainer
|
Committees
|
Other compensation
|
Total
|
||||||||||||
In whole US dollars
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
||||||||
Guillaume Bacuvier
|
279,799
|
|
123,869
|
|
60,335
|
|
24,774
|
|
—
|
|
—
|
|
340,134
|
|
148,643
|
|
Osama Bedier
|
279,799
|
|
123,869
|
|
27,980
|
|
12,387
|
|
—
|
|
—
|
|
307,779
|
|
136,256
|
|
Ursula Burns *
|
—
|
|
—
|
|
6,661
|
|
—
|
|
—
|
|
—
|
|
6,661
|
|
—
|
|
Stan Chudnovsky
|
—
|
|
172,039
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
172,039
|
|
Mikhail Fridman
|
44,768
|
|
47,188
|
|
—
|
|
—
|
|
—
|
|
—
|
|
44,768
|
|
47,188
|
|
Gennady Gazin
|
279,799
|
|
294,925
|
|
89,536
|
|
77,270
|
|
—
|
|
—
|
|
369,335
|
|
372,195
|
|
Andrei Gusev
|
44,768
|
|
47,188
|
|
—
|
|
—
|
|
839,396
|
|
—
|
|
884,164
|
|
47,188
|
|
Gunnar Holt
|
279,799
|
|
294,925
|
|
77,944
|
|
58,985
|
|
—
|
|
—
|
|
357,743
|
|
353,910
|
|
Sir Julian Horn-Smith
|
279,799
|
|
294,925
|
|
27,980
|
|
12,387
|
|
—
|
|
—
|
|
307,779
|
|
307,312
|
|
Jørn P. Jensen
|
—
|
|
192,684
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
192,684
|
|
Robert Jan van de Kraats
|
279,799
|
|
123,869
|
|
33,576
|
|
14,864
|
|
—
|
|
—
|
|
313,375
|
|
138,733
|
|
Guy Laurence
|
279,799
|
|
294,925
|
|
33,576
|
|
49,076
|
|
—
|
|
19,170
|
|
313,375
|
|
363,171
|
|
Alexander Pertsovsky
|
44,768
|
|
47,188
|
|
—
|
|
—
|
|
—
|
|
—
|
|
44,768
|
|
47,188
|
|
Kaan Terzioglu
|
103,758
|
|
—
|
|
10,143
|
|
—
|
|
—
|
|
—
|
|
113,901
|
|
—
|
|
Total compensation
|
2,196,655
|
|
2,057,594
|
|
367,731
|
|
249,743
|
|
839,396
|
|
19,170
|
|
3,403,782
|
|
2,326,507
|
|
22
|
EVENTS AFTER THE REPORTING PERIOD
|
23
|
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS
|
•
|
Goodwill of US$3,816 is now presented within Intangible assets (previously within Goodwill);
|
•
|
Income tax provision of US$164 is now presented within Current income tax payable (previously within current Provisions);
|
•
|
Certain customer advances of US$192 is now presented within current Trade and other payables (previously within current Other liabilities);
|
•
|
Investments and derivatives (non-current) of US$58 is now presented separately (previously within non-current Other assets);
|
•
|
Current income tax assets of US$112 is now presented separately (previously within current Other assets);
|
•
|
Current income tax payable of US$196 is now presented separately (previously within current Other liabilities).
|
24
|
SIGNIFICANT ACCOUNTING POLICIES
|
Significant accounting judgment / source of estimation uncertainty
|
Described in
|
Revenue recognition
|
Note 3
|
Deferred tax assets and uncertain tax positions
|
Note 9
|
Provisions
|
Note 8
|
Impairment of non-current assets
|
Note 11
|
Control over subsidiaries
|
Note 14
|
Depreciation and amortization of non-current assets
|
Note 12 and Note 13
|
Fair value of financial instruments
|
Note 15
|
Measurement of lease liabilities
|
Note 15
|
|
December 31, 2018
|
|
Impact of IFRS 16
|
|
January 1, 2019
|
|
Assets
|
|
|
|
|||
Non-current assets
|
|
|
|
|||
Property and equipment
|
|
|
|
|||
Property and equipment
|
4,932
|
|
(71
|
)
|
4,861
|
|
Right-of-use assets
|
—
|
|
2,023
|
|
2,023
|
|
Intangible assets
|
1,854
|
|
(15
|
)
|
1,839
|
|
Goodwill
|
3,816
|
|
—
|
|
3,816
|
|
Deferred tax assets
|
197
|
|
—
|
|
197
|
|
Other assets
|
193
|
|
(1
|
)
|
192
|
|
Total non-current assets
|
10,992
|
|
1,936
|
|
12,928
|
|
|
|
|
|
|||
Current assets
|
|
|
|
|||
Trade and other receivables
|
577
|
|
(61
|
)
|
516
|
|
Other current assets
|
2,516
|
|
—
|
|
2,516
|
|
Total current assets
|
3,093
|
|
(61
|
)
|
3,032
|
|
|
|
|
|
|||
Assets classified as held for sale
|
17
|
|
4
|
|
21
|
|
|
|
|
|
|||
Total assets
|
14,102
|
|
1,879
|
|
15,981
|
|
|
|
|
|
|||
Equity
|
|
|
|
|||
Equity attributable to equity owners of the parent
|
3,670
|
|
(3
|
)
|
3,667
|
|
Non-controlling interest
|
(891
|
)
|
(1
|
)
|
(892
|
)
|
Total equity
|
2,779
|
|
(4
|
)
|
2,775
|
|
|
|
|
|
|||
Non-current liabilities
|
|
|
|
|||
Debt and derivatives
|
6,567
|
|
(45
|
)
|
6,522
|
|
Provisions
|
110
|
|
—
|
|
110
|
|
Lease liabilities
|
—
|
|
1,638
|
|
1,638
|
|
Deferred tax liabilities
|
180
|
|
—
|
|
180
|
|
Other liabilities
|
53
|
|
(9
|
)
|
44
|
|
Total non-current liabilities
|
6,910
|
|
1,584
|
|
8,494
|
|
|
|
|
|
|||
Current liabilities
|
|
|
|
|||
Trade and other payables
|
1,432
|
|
(54
|
)
|
1,378
|
|
Debt and derivatives
|
1,289
|
|
(6
|
)
|
1,283
|
|
Lease liabilities
|
—
|
|
361
|
|
361
|
|
Provisions
|
398
|
|
(3
|
)
|
395
|
|
Other liabilities
|
1,290
|
|
(3
|
)
|
1,287
|
|
Total current liabilities
|
4,409
|
|
295
|
|
4,704
|
|
|
|
|
|
|||
Liabilities associated with assets held for sale
|
4
|
|
4
|
|
8
|
|
|
|
|
|
|||
Total equity and liabilities
|
14,102
|
|
1,879
|
|
15,981
|
|
•
|
Change in lease price due to indexation or rate which has become effective in reporting period
|
•
|
Modifications to the lease contract
|
•
|
Reassessment of the lease term
|
•
|
IFRS 16 applied only to contracts that were previously assessed as leases in accordance with the previous IFRS standards (IAS 17 Leases and IFRIC 4 Determining whether and Arrangement contains a Lease);
|
•
|
a single discount rate applied to a portfolio of leases with reasonably similar characteristics as permitted by IFRS 16;
|
•
|
initial direct cost was excluded from the measurement of the right-of-use asset as of January 1, 2019;
|
•
|
the Group's onerous contract provision process used as the impairment assessment of right-of-use assets upon transition.
|
|
US$
|
|
|
|
|
Operating lease commitments as of December 31, 2018 (see Note 4)
|
632
|
|
Increase in lease commitments of cancelable leases included in reasonably certain lease term
|
1,846
|
|
Use of IFRS 16 practical expedients (old lease accounting continues for exceptions)
|
(4
|
)
|
Leases commencing subsequent to transition date committed to as of December 31, 2018
|
(47
|
)
|
Accruals included in the lease liability calculation
|
59
|
|
Other
|
22
|
|
Total undiscounted lease payments which are reasonably certain
|
2,508
|
|
|
|
|
Discounting effect using incremental borrowing rate
|
(559
|
)
|
IAS 17 finance lease liabilities recognized on balance sheet as of December 31, 2018 (discounted)
|
54
|
|
|
|
|
IFRS 16 Lease liability recognized on balance sheet as of January 1, 2019
|
2,003
|
|
|
|
|
IFRS 16 lease liability presented as
|
|
|
Non-current
|
1,638
|
|
Current
|
361
|
|
Liabilities associated with assets held for sale
|
4
|
|
|
2,003
|
|
|
2019
|
2018
|
2017
|
|||
Non-current assets
|
|
|
|
|||
Intangible assets
|
10
|
|
9
|
|
37
|
|
Tangible fixed assets
|
15
|
|
4
|
|
7
|
|
Financial fixed assets
|
1,152
|
|
3,590
|
|
4,236
|
|
Total non-current assets
|
1,177
|
|
3,603
|
|
4,280
|
|
Total current assets
|
393
|
|
435
|
|
394
|
|
|
|
|
|
|||
Total assets
|
1,570
|
|
4,038
|
|
4,674
|
|
|
|
|
|
|||
Equity
|
1,226
|
|
3,670
|
|
4,331
|
|
Total liabilities
|
344
|
|
368
|
|
343
|
|
|
|
|
|
|||
Total equity and liabilities
|
1,570
|
|
4,038
|
|
4,674
|
|
|
2019
|
2018
|
2017
|
|||
Total comprehensive loss for the year, net of tax
|
733
|
|
(138
|
)
|
(1,081
|
)
|
•
|
participate in shareholder meetings;
|
•
|
have one vote on all issues voted upon at a shareholder meeting, except for the purposes of cumulative voting for the election of the Board, in which case each common share shall have the same number of votes as the total number of members to be elected to the Board and all such votes may be cast for a single candidate or may be distributed between or among two or more candidates;
|
•
|
receive dividends approved by the Board;
|
•
|
in the event of our liquidation, receive a pro rata share of our surplus assets; and
|
•
|
exercise any other rights of a common shareholder set forth in our bye-laws and Bermuda law.
|
•
|
it is proposed by or at the direction of the Board;
|
•
|
it is proposed at the direction of a court;
|
•
|
it is proposed on the requisition in writing of such number of shareholders as is prescribed by, and is made in accordance with, the relevant provisions of the Companies Act or our bye-laws; or
|
•
|
the chairman of the meeting in his absolute discretion decides that the resolution may properly be regarded as within the scope of the meeting.
|
•
|
any sale of all or substantially all of our assets;
|
•
|
the appointment of an auditor;
|
•
|
removal of directors; and
|
•
|
any issue of securities of the Company described under NASDAQ Listing Rule 5635 (Shareholder Approval) (or any successor thereto) other than for any stock option plans or other equity compensation plans or in any other circumstance described under NASDAQ Listing Rule 5635(c) (Equity Compensation) (or any successor thereto.
|
•
|
“whitewash” procedure for mandatory offers, which requires the affirmative vote of a majority of the shareholders voting in person or by proxy at a general meeting, excluding the vote of the shareholder or shareholders in question and their affiliates;
|
•
|
voting for directors, which requires directors to be elected by cumulative voting at each annual general meeting;
|
•
|
changes to our Bye-laws, which require a resolution to be passed by shareholders representing not less than 75.0% of the total voting rights of the shareholders who vote in person or by proxy on the resolution;
|
•
|
any merger, consolidation, amalgamation, conversion, reorganization, scheme of arrangement, dissolution or liquidation, which requires a resolution to be passed by shareholders representing not less than 75.0% of the total voting rights of the shareholders who vote in person or by proxy on the resolution;
|
•
|
loans to any director, which require a resolution to be passed by shareholders representing not less than 90.0% of the total voting rights of the shareholders who vote in person or by proxy on the resolution; and
|
•
|
the discontinuation of the Company to a jurisdiction outside Bermuda, which requires a resolution to be passed by shareholders representing not less than 75.0% of the total voting rights of the shareholders who vote in person or by proxy on the resolution.
|
•
|
ensure that the surrendered receipt is properly endorsed or otherwise in proper form for transfer;
|
•
|
provide such proof of identity and genuineness of signatures as the Depositary deems appropriate;
|
•
|
provide any transfer stamps required by the State of New York or the United States; and
|
•
|
pay all applicable fees, charges, expenses, taxes and other government charges payable by shareholders pursuant to the terms of the Deposit Agreement, upon the transfer of receipts.
|
•
|
temporary delays that may arise because (i) the transfer books for the shares or ADSs are closed, or (ii) shares are immobilized on account of a shareholders' meeting or a payment of dividends;
|
•
|
obligations to pay fees, taxes and similar charges; and/or
|
•
|
restrictions imposed because of laws or regulations applicable to ADSs or the withdrawal of securities on deposit.
|
•
|
The Company and the Depositary are obligated only to take the actions specifically stated in the Deposit Agreement without negligence or bad faith.
|
•
|
The Depositary disclaims any liability for any failure to carry out voting instructions, for any manner in which a vote is cast or for the effect of any vote, provided it acts in good faith and in accordance with the terms of the Deposit Agreement.
|
•
|
The Depositary disclaims any liability for any failure to determine the lawfulness or practicality of any action, for the content of any document forwarded to shareholders on the Company’s behalf or for the accuracy of any translation of such a document, for the investment risks associated with investing in shares, for the validity or worth of the shares, for any tax consequences that result from the ownership of ADSs, for the credit-worthiness of any third party, for allowing any rights to lapse under the terms of the Deposit Agreement, for the timeliness of any of the Company’s notices or for its failure to give notice.
|
•
|
The Company and the Depositary will not be obligated to perform any act that is inconsistent with the terms of the Deposit Agreement.
|
•
|
The Company and the Depositary disclaim any liability if the Company or the Depositary are prevented or forbidden from or subject to any civil or criminal penalty or restraint on account of, or delayed in, doing or performing any act or thing required by the terms of the Deposit Agreement, by reason of any provision, present or future of any law or regulation of the United States, Bermuda, or any other country, or by reason of present or future provision of any provision of the Company’s Organizational Documents, or any provision of or governing the securities on deposit, or by reason of any act of God or war or other circumstances beyond the Company’s control.
|
•
|
The Company and the Depositary disclaim any liability by reason of any exercise of, or failure to exercise, any discretion provided for in the Deposit Agreement or in the Company’s Organizational Documents or in any provisions of or governing the securities on deposit.
|
•
|
The Company and the Depositary further disclaim any liability for any action or inaction in reliance on the advice or information received from legal counsel, accountants, any person presenting shares for deposit, any shareholder of ADSs or authorized representatives thereof, or any other person believed by either of us in good faith to be competent to give such advice or information.
|
•
|
The Company and the Depositary also disclaim liability for the inability by a shareholder to benefit from any distribution, offering, right or other benefit that is made available to shareholders of shares but is not, under the terms of the Deposit Agreement, made available to shareholders of ADSs.
|
•
|
The Company and the Depositary may rely without any liability upon any written notice, request or other document believed to be genuine and to have been signed or presented by the proper parties.
|
•
|
The Company and the Depositary also disclaim liability for any consequential or punitive damages for any breach of the terms of the Deposit Agreement.
|
•
|
No disclaimer of any Securities Act liability is intended by any provision of the Deposit Agreement.
|
Name of significant subsidiary
|
Country of incorporation
|
Nature of subsidiary
|
Percentage of ownership interest
|
|
|
|
|
|
|
VEON Amsterdam B.V.
|
Netherlands
|
Holding
|
100.0
|
%
|
VEON Holdings B.V.
|
Netherlands
|
Holding
|
100.0
|
%
|
PJSC VimpelCom
|
Russia
|
Operating
|
100.0
|
%
|
JSC “Kyivstar”
|
Ukraine
|
Operating
|
100.0
|
%
|
LLP “KaR-Tel”
|
Kazakhstan
|
Operating
|
75.0
|
%
|
LLC “Unitel”
|
Uzbekistan
|
Operating
|
100.0
|
%
|
LLC “VEON Georgia”
|
Georgia
|
Operating
|
80.0
|
%
|
CJSC “VEON Armenia”
|
Armenia
|
Operating
|
100.0
|
%
|
LLC “Sky Mobile”
|
Kyrgyzstan
|
Operating
|
50.1
|
%
|
VEON Luxembourg Holdings S.à r.l.
|
Luxembourg
|
Holding
|
100.0
|
%
|
VEON Luxembourg Finance Holdings S.à r.l.
|
Luxembourg
|
Holding
|
100.0
|
%
|
VEON Luxembourg Finance S.A.
|
Luxembourg
|
Holding
|
100.0
|
%
|
Global Telecom Holding S.A.E
|
Egypt
|
Holding
|
99.5
|
%
|
Omnium Telecom Algérie S.p.A.*
|
Algeria
|
Holding
|
45.4
|
%
|
Optimum Telecom Algeria S.p.A.*
|
Algeria
|
Operating
|
45.4
|
%
|
Pakistan Mobile Communications Limited
|
Pakistan
|
Operating
|
85.0
|
%
|
Banglalink Digital Communications Limited
|
Bangladesh
|
Operating
|
100.0
|
%
|
1.
|
I have reviewed this annual report on Form 20-F of VEON Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
|
4.
|
The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
|
5.
|
The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.
|
1.
|
I have reviewed this annual report on Form 20-F of VEON Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
|
4.
|
The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
|
5.
|
The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.
|
1.
|
I have reviewed this annual report on Form 20-F of VEON Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;
|
4.
|
The company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting; and
|
5.
|
The company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the company’s internal control over financial reporting.
|
Abbreviation
|
|
Definition
|
“2G”
|
|
The second-generation mobile telephony system based on the standards defined by the ITU.
|
“3G”
|
|
The third-generation mobile telephony system based on the standards defined by the ITU
|
“4G/LTE”
|
|
The fourth-generation/long-term evolution mobile technologies, including WiMax, based on the standards defined by the ITU
|
“5G”
|
|
Fifth generation mobile networks
|
“ADSL”
|
|
Asymmetric digital subscriber line
|
“ANO”
|
|
Alternative network operator
|
“API”
|
|
Application programming interface
|
“ARPU”
|
|
Average revenue per user of telephone services, calculated over a given period of time for the average number of total customers or of active customers in the same period
|
“B2B”
|
|
Business to business
|
“B2C”
|
|
Business to company
|
“B2O”
|
|
Business to operation
|
“Broadband”
|
|
A high-capacity network backbone providing connectivity between sites and that picks up and conveys the traffic of lower-capacity peripheral rings
|
“BTS”
|
|
Base transceiver station: fixed transmitter/receiver equipment located within cells of a mobile telecommunications network that enables communications by means of radio signals with mobile telephones
|
“CAMEL”
|
|
Customized Applications for Mobile network Enhanced Logic
|
“CDMA”
|
|
Code division multiple access
|
“Churn”
|
|
A measure of the proportion of a business unit’s customer base that disconnects from such business unit’s service over a period of time. Prepaid and postpaid churn rates are each calculated by dividing the respective total number of prepaid or postpaid customer disconnections (including customers who disconnect and reactivate with the same phone number) for the period by the average number of prepaid or postpaid customers for the period. The average number of customers for the period is calculated by taking the average of each month’s average number of prepaid or postpaid customers (calculated as the average of the total number of customers at month-end and the total number of customers at the end of the previous month) during the period. A business unit’s total churn rate is the weighted average of such business unit’s prepaid churn rate and postpaid churn rate over the period, based on weighted number of prepaid and postpaid customers
|
“Customer”
|
|
For mobile line telephone services, the terms refer to anyone: (a) who is a holder of a SIM card; and (b) in the event of prepaid services, anyone who has made at least one recharge after the second month of making the SIM purchase
|
“DFS”
|
|
Digital financial services
|
“DSL”
|
|
Digital subscriber line
|
“DWDM”
|
|
Dense wavelength divisions multiplexing
|
“EDGE”
|
|
Enhanced data rates for GSM Evolution: evolution of data communications within the existing GSM standard. Designed as a step forward from GPRS, EDGE improves the GSM radio interface in that it increases the data transfer speed by optimizing use of the available spectrum
|
“FMC”
|
|
Fix mobile convergence (charging subscribers who use both mobile and fixed fiber connect from a single account)
|
“FOL”
|
|
Fiber optical line
|
“FTR”
|
|
Fixed termination rate
|
“FTTB”
|
|
Fiber-to-the-building
|
“GPRS”
|
|
General packet radio service: data transmission technology using packet-based transmission for providing mobile telecommunications
|
“GSM”
|
|
Global System for Mobile Communications: a mobile-telephony standard based on digital transmission and cellular network architecture with a roaming system
|
“GSM900”
|
|
Mobile telephone services using GSM in the 900 MHz frequency range
|
“GSM900/1800”
|
|
Mobile telephone services using the GSM standard in the 900 MHz and 1800 MHz frequency ranges
|
“GSM1800”
|
|
Mobile telephone services using GSM in the 1800 MHz frequency range
|
“HSPA”
|
|
High-speed packet access
|
“ICX”
|
|
Interconnection exchange
|
“IEEE”
|
|
Institute of Electrical and Electronics Engineers (a professional association which creates and maintains standards for wireless network products)
|
“IGW”
|
|
International gateway
|
“IIG”
|
|
International internet gateway
|
“ILD”
|
|
International long distance
|
“Incumbent”
|
|
The term defining the telephone carrier company which once had a monopoly on the market, and now has a dominating position on a free market
|
“Internet”
|
|
Internet of things
|
“IP”
|
|
Internet protocol: the universal communications protocol based on the exchange of packets of information between telecommunications equipment. It is the standard protocol used on the internet
|
“IPTSP”
|
|
Internet protocol telephony service provider
|
“IPTV”
|
|
Internet protocol television
|
“IP VPN”
|
|
IP virtual private network
|
“ISDN”
|
|
Integrated services digital network
|
“ISP”
|
|
Internet service provider: provider of access to the internet and to the service linked to the latter
|
“IVR”
|
|
Interactive voice response
|
“L2VPN”
|
|
Layer-2 virtual private network
|
“LDI”
|
|
Long distance and international
|
“LLU”
|
|
Local loop unbundling (In Italy, this is the regulatory process of allowing multiple telecommunications operators to use connections from Telecom Italia’s local exchanges to the customer’s premises)
|
“M2M”
|
|
Machine to machine
|
“Mbps”
|
|
Megabytes per second
|
“MFS”
|
|
Mobile financial services
|
“MHz”
|
|
Mega hertz: the hertz is a unit of frequency of one cycle per second. A mega hertz refers to a frequency of one million hertz
|
“MMS”
|
|
Multimedia messaging service: an evolution of SMS services that, in addition to text messages, offer several types of multimedia contents such as images, audio and video-clips
|
“MNP”
|
|
Mobile number portability: a service, recently approved by the BTRC in Bangladesh, which allows customers to keep their mobile number when switching between mobile operators. The BTRC directive, instructing mobile telecommunications operators to make this service available to customers in Bangladesh, was approved by the BTRC on May 6, 2013
|
“Mobile operator”
|
|
Provider of telecommunications services using the range of radio frequencies assigned to it
|
“MOU”
|
|
Minutes of use
|
“MPLS”
|
|
Multiprotocol label switching
|
“MSAN”
|
|
Multi-service access nodes
|
“MTR”
|
|
Mobile termination rates
|
“Multimedia”
|
|
Communications using any combination of different media and which may comprise text, audio, music, images, animation and video
|
“MVNO”
|
|
Mobile virtual network operator
|
“OTT”
|
|
Over-the-top. Refers to content service providers such as Google and Facebook
|
“PBX”
|
|
Private branch exchange
|
“Penetration rate”
|
|
This is a measure of access to telecommunications, normally calculated by dividing the number of customers to a particular service by the population to whom it is available and multiplying by 100. It is also referred to as teledensity (for fixed-line networks) or mobile density (for cellular networks)
|
“Prepaid”
|
|
Mobile telephony service paid for in advance by the customer
|
“Postpaid”
|
|
Mobile telephony service paid for after usage by the customer has occurred
|
“Protocol”
|
|
The standard communication rules between two computers or within a computer network. Two computers using the same protocol can exchange data. The internet is based on a series of protocols, for example www is based on http protocol. The most popular is IP, Internet Protocol, which is a data transfer protocol
|
“PSTN”
|
|
Public switched telephone network: the circuit-switched public telephone network
|
“RBT”
|
|
Customized ring back tones
|
“REF”
|
|
Radio electronic facilities
|
“RIO”
|
|
Reference interconnection offers
|
“Roam” or “roaming”
|
|
The ability to make and receive calls on the same mobile phone even when travelling outside the area covered by the “home” network operator
|
“SaaS”
|
|
Software as a service
|
“SDH”
|
|
Synchronous digital hierarchy
|
“SIM” or “SIM card”
|
|
Customer identity module card: magnetic cards with a memory for data storage and software applications
|
“SME”
|
|
Small- and medium-size enterprise market which consists of businesses having between 3 and 50 employees
|
“SMS”
|
|
Short message service: a protocol that uses the signaling channel to transmit text messages up to 160 characters long
|
“SOHO”
|
|
Small office/home office
|
“TDD”
|
|
Time division duplex
|
“ULL”
|
|
Unbundled local loop
|
“UMTS”
|
|
Universal Mobile Telecommunications System
|
“USB”
|
|
Universal serial bus
|
“Value Added Services” or “VAS”
|
|
These are services that provide a higher level of functionality than those offered by basic transmission services made available by a telecommunications network for transferring information via terminals
|
“VoIP”
|
|
Voice over IP: digital technology enabling the transmission of voice packages via the internet, intranet, extranet and VNP networks. The packets are carried according to H.323 specifications, that is to say the ITU standard forming the basis for data, audio, video and communications services over IP type networks
|
“VPN”
|
|
Virtual private network
|
“VSAT”
|
|
Very small aperture terminals, which are two-way satellite ground stations used to transmit data
|
“WBA”
|
|
Wholesale broadband access
|
“WiMax”
|
|
Worldwide interoperability for microwave access communication standard
|
“WLL”
|
|
Wireless local loop
|
“WLR”
|
|
Wholesale line rental
|
“xDSL”
|
|
All types of DSL
|
Regulatory bodies
|
•
|
information technology, including the use of information technology in public resources and promotion of access to such resources;
|
•
|
telecommunications, including the allocation and conversion of the radio frequency spectrum, and postal communications;
|
•
|
mass media, including electronic media, development of the internet, television and radio broadcasting (including developments based on digital technology), and new related technologies;
|
•
|
publishing, printing, and distribution of printed media;
|
•
|
personal data processing, management over specified state property and provision of public services in the area of information technology including organization public information resources and access to it; and
|
•
|
national policy and legal regulation relating to protection of children from information harmful to their health or development.
|
Regulatory framework
|
•
|
license communications service providers;
|
•
|
allocate radio frequencies;
|
•
|
certify telecommunications equipment;
|
•
|
allocate numbering resources;
|
•
|
ensure fair competition and fair pricing;
|
•
|
conduct oversight of operators’ compliance with the terms of their licenses and Russian law; and
|
•
|
ensure stability, security and functional integrity of the internet and public communication.
|
Licenses
|
Mobile Termination Rates
|
Significant Market Power
|
Mobile Number Portability
|
Data Protection
|
Other
|
•
|
duties related to maintaining the functioning and security of communication lines crossing the state border of the Russian Federation;
|
•
|
rules of communication network management in the event of threats to the stable, safe and integral operation of the Russian internet;
|
•
|
rules restricting access to the information distributed via the internet;
|
•
|
requirements to ensure the installation on communication networks the technical means to counteract threats to equipment and information control equipment; and
|
•
|
the use of a national domain system.
|
Sanctions regimes imposed against Russia
|
Regulatory bodies
|
Licenses
|
Mobile Termination Rates
|
Significant Market Power
|
•
|
obtain prior approvals from the PTA for the launch of class value added services and any change in prices;
|
•
|
provide, on a first-come, first-served basis, national roaming services and infrastructure sharing, meaning SMP operators will not be allowed to discriminate among operators;
|
•
|
pay MTRs as determined by the PTA (instead of the mutually agreed upon MTR paid by non-SMP licensees); and
|
•
|
offer infrastructure sharing.
|
Mobile Number Portability
|
Data Protection
|
Other
|
Regulatory bodies
|
Regulatory framework
|
Licenses
|
Retail market regulation
|
Significant Market Power
|
Mobile Termination Rates
|
Mobile Number Portability
|
Data Protection
|
Other
|
Regulatory bodies
|
Regulatory framework
|
Licenses
|
Mobile Termination Rates
|
Significant Market Power
|
Mobile Number Portability
|
Data Protection
|
Other
|
Regulatory bodies
|
Regulatory framework
|
Licenses
|
Mobile Termination Rates
|
Significant Market Power
|
Mobile Number Portability
|
Data Protection
|
Other
|
Regulatory bodies
|
Regulatory framework
|
Licenses
|
Mobile Termination Rates
|
Significant Market Power
|
Mobile Number Portability
|
Data Protection
|
Other
|
•
|
From November 2019, IMEI registration can be processed manually only through the IMEI registration system.
|
•
|
From November to December 2019, registration was available free of charge via the internet, SMS and USSD; and subsequently IMEI registration is on a paid basis, with payments being made through payment systems, which require a bank card, or made at banks offices.
|
Regulatory bodies
|
Regulatory framework
|
Licenses
|
Mobile Termination Rates
|
Significant Market Power
|
Mobile Number Portability
|
Data Protection
|