Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Dec. 31, 2020 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 1-34694 |
Entity Registrant Name | VEON LTD. |
Entity Incorporation, State or Country Code | D0 |
Entity Address, Address Line One | Claude Debussylaan 88 |
Entity Address, Postal Zip Code | 1082 MD |
Entity Address, City or Town | Amsterdam |
Entity Address, Country | NL |
Title of 12(b) Security | American Depositary Shares, or ADSs,each representing one common share |
Trading Symbol | VEON |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding (in shares) | 1,756,731,135 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Amendment Flag | false |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
Entity Central Index Key | 0001468091 |
ICFR Auditor Attestation Flag | true |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Claude Debussylaan 88 |
Entity Address, Postal Zip Code | 1082 MD |
Entity Address, City or Town | Amsterdam |
Entity Address, Country | NL |
City Area Code | +31 |
Local Phone Number | 20 797 7200 |
Contact Personnel Name | Scott Dresser |
CONSOLIDATED INCOME STATEMENT
CONSOLIDATED INCOME STATEMENT - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement1 [Line Items] | |||
Total operating revenues | $ 7,980 | $ 8,863 | $ 9,086 |
Other operating income | 5 | 350 | 0 |
Service costs | (1,508) | (1,554) | (1,701) |
Cost of equipment and accessories | (382) | (479) | (415) |
Selling, general and administrative expenses | (2,641) | (2,965) | (3,697) |
Depreciation | (1,576) | (1,652) | (1,339) |
Amortization | (343) | (394) | (495) |
Impairment (loss) / reversal | (785) | (108) | (858) |
Gain / (loss) on disposal of non-current assets | (37) | (43) | (57) |
Gain / (loss) on disposal of subsidiaries | (78) | 1 | 30 |
Operating (loss) / profit | 635 | 2,019 | 554 |
Finance costs | (683) | (892) | (816) |
Finance income | 23 | 53 | 67 |
Other non-operating gain / (loss) | 111 | 21 | (68) |
Net foreign exchange gain / (loss) | (60) | (20) | 15 |
Profit / (loss) before tax from continuing operations | 26 | 1,181 | (248) |
Income tax expense | (342) | (498) | (369) |
Profit / (loss) from continuing operations | (316) | 683 | (617) |
Profit / (loss) after tax from discontinued operations | 0 | 0 | (300) |
Gain / (loss) on disposal of discontinued operations | 0 | 0 | 1,279 |
Profit / (loss) for the period | (316) | 683 | 362 |
Attributable to: | |||
The owners of the parent (continuing operations) | (349) | 621 | (397) |
The owners of the parent (discontinued operations) | 0 | 0 | 979 |
Non-controlling interest | 33 | 62 | (220) |
Profit / (loss) for the period | $ (316) | $ 683 | $ 362 |
Basic and diluted gain / (loss) per share attributable to ordinary equity holders of the parent: | |||
From continuing operations (in dollars per share) | $ (0.20) | $ 0.36 | $ (0.23) |
From discontinued operations (in dollars per share) | 0 | 0 | 0.56 |
Total (in dollars per share) | $ (0.20) | $ 0.36 | $ 0.33 |
Service revenues | |||
Statement1 [Line Items] | |||
Total operating revenues | $ 7,471 | $ 8,240 | $ 8,526 |
Sale of equipment and accessories | |||
Statement1 [Line Items] | |||
Total operating revenues | 392 | 465 | 427 |
Other revenues / other income | |||
Statement1 [Line Items] | |||
Total operating revenues | $ 117 | $ 158 | $ 133 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of comprehensive income [abstract] | |||
Profit / (loss) | $ (316) | $ 683 | $ 362 |
Items that may be reclassified to profit or loss | |||
Foreign currency translation | (623) | 49 | (819) |
Share of other comprehensive income / (loss) of Italy Joint Venture | 0 | 0 | (18) |
Other | 1 | 26 | (7) |
Items reclassified to profit or loss | |||
Reclassification of accumulated foreign currency translation reserve to profit or loss upon disposal of foreign operation | 96 | 0 | (79) |
Reclassification of accumulated share of other comprehensive income / (loss) of Italy Joint Venture to profit or loss | 0 | 0 | 31 |
Other | (15) | (19) | 5 |
Other comprehensive income / (loss) for the period, net of tax | (541) | 56 | (887) |
Total comprehensive income / (loss) | (857) | 739 | (525) |
Attributable to: | |||
The owners of the parent | (800) | 733 | (138) |
Non-controlling interests | (57) | 6 | (387) |
Total comprehensive income / (loss) | $ (857) | $ 739 | $ (525) |
CONSOLIDATED STATEMENT OF FINAN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current assets | ||
Property and equipment | $ 6,879 | $ 7,340 |
Intangible assets | 4,152 | 5,688 |
Investments and derivatives | 305 | 235 |
Deferred tax assets | 186 | 134 |
Other assets | 179 | 163 |
Total non-current assets | 11,701 | 13,560 |
Current assets | ||
Inventories | 111 | 169 |
Trade and other receivables | 572 | 628 |
Investments and derivatives | 165 | 82 |
Current income tax assets | 73 | 16 |
Other assets | 335 | 354 |
Cash and cash equivalents | 1,594 | 1,250 |
Total current assets | 2,850 | 2,499 |
Total assets | 14,551 | 16,059 |
Equity | ||
Equity attributable to equity owners of the parent | 163 | 1,226 |
Non-controlling interests | 850 | 994 |
Total equity | 1,013 | 2,220 |
Non-current liabilities | ||
Debt and derivatives | 8,832 | 7,759 |
Provisions | 141 | 138 |
Deferred tax liabilities | 127 | 141 |
Other liabilities | 28 | 33 |
Total non-current liabilities | 9,128 | 8,071 |
Current liabilities | ||
Trade and other payables | 1,977 | 1,847 |
Debt and derivatives | 1,224 | 2,585 |
Provisions | 151 | 222 |
Current income tax payables | 175 | 102 |
Other liabilities | 883 | 1,012 |
Total current liabilities | 4,410 | 5,768 |
Total equity and liabilities | $ 14,551 | $ 16,059 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Total | Issued capital | Capital Surplus | Other capital reserves | Accumulated deficit * | [1] | Foreign currency translation reserve | Non-controlling interests |
Number of shares outstanding at beginning of period (in shares) (Previously stated) at Dec. 31, 2017 | 1,749,127,404 | ||||||||
Number of shares outstanding at beginning of period (in shares) at Dec. 31, 2017 | 1,749,127,404 | ||||||||
Equity at beginning of period (Previously stated) at Dec. 31, 2017 | $ 3,890 | $ 4,331 | $ 2 | $ 12,753 | $ 729 | $ (1,486) | $ (7,667) | $ (441) | |
Equity at beginning of period (Increase (decrease) due to changes in accounting policy required by IFRSs) at Dec. 31, 2017 | 57 | 46 | 46 | 11 | |||||
Equity at beginning of period at Dec. 31, 2017 | 3,947 | 4,377 | $ 2 | 12,753 | 729 | (1,440) | (7,667) | (430) | |
Profit / (loss) for the period | 362 | 582 | 582 | (220) | |||||
Other comprehensive income / (loss) | (887) | (720) | 11 | 5 | (736) | (167) | |||
Total comprehensive income / (loss) | (525) | (138) | 11 | 587 | (736) | (387) | |||
Dividends declared | (602) | (509) | (509) | (93) | |||||
Other | (41) | (60) | 3 | (50) | (13) | 19 | |||
Number of shares outstanding at end of period (in shares) (Previously stated) at Dec. 31, 2018 | 1,749,127,404 | ||||||||
Number of shares outstanding at end of period (in shares) at Dec. 31, 2018 | 1,749,127,404 | ||||||||
Equity at end of period (Previously stated) at Dec. 31, 2018 | 2,779 | 3,670 | $ 2 | 12,753 | 743 | (1,412) | (8,416) | (891) | |
Equity at end of period (Increase (decrease) due to changes in accounting policy required by IFRSs) at Dec. 31, 2018 | (4) | (3) | (3) | (1) | |||||
Equity at end of period at Dec. 31, 2018 | 2,775 | 3,667 | $ 2 | 12,753 | 743 | (1,415) | (8,416) | (892) | |
Profit / (loss) for the period | 683 | 621 | 621 | 62 | |||||
Other comprehensive income / (loss) | 56 | 112 | 6 | 1 | 105 | (56) | |||
Total comprehensive income / (loss) | 739 | 733 | 6 | 622 | 105 | 6 | |||
Dividends declared | (633) | (525) | (525) | (108) | |||||
Changes in ownership interest in a subsidiary that do not result in a loss of control | (608) | (2,594) | (2,594) | 1,986 | |||||
Other | (53) | (55) | (42) | (12) | (1) | 2 | |||
Number of shares outstanding at end of period (in shares) at Dec. 31, 2019 | 1,749,127,404 | ||||||||
Equity at end of period at Dec. 31, 2019 | 2,220 | 1,226 | $ 2 | 12,753 | (1,887) | (1,330) | (8,312) | 994 | |
Profit / (loss) for the period | (316) | (349) | (349) | 33 | |||||
Other comprehensive income / (loss) | (541) | (451) | (10) | (4) | (437) | (90) | |||
Total comprehensive income / (loss) | (857) | (800) | (10) | (353) | (437) | (57) | |||
Dividends declared | (349) | (262) | (262) | (87) | |||||
Other | (1) | (1) | (1) | 26 | (26) | 0 | |||
Number of shares outstanding at end of period (in shares) at Dec. 31, 2020 | 1,749,127,404 | ||||||||
Equity at end of period at Dec. 31, 2020 | $ 1,013 | $ 163 | $ 2 | $ 12,753 | $ (1,898) | $ (1,919) | $ (8,775) | $ 850 | |
[1] | Certain of the consolidated entities by VEON Ltd. are restricted from remitting funds in the form of cash dividends or loans by a variety of regulations, contractual or local statutory requirements, refer to Note 25 for further details. |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Operating activities | ||||||
Profit / (loss) before tax from continuing operations | $ 26 | $ 1,181 | $ (248) | |||
Non-cash adjustments to reconcile profit before tax to net cash flows | ||||||
Depreciation, amortization and impairment loss / (reversal) | 2,704 | 2,154 | 2,692 | |||
(Gain) / loss on disposal of non-current assets | 37 | 43 | 57 | |||
(Gain) / loss on disposal of subsidiaries | 78 | (1) | (30) | |||
Finance costs | 683 | 892 | 816 | |||
Finance income | (23) | (53) | (67) | |||
Other non-operating (gain) / loss | (111) | (21) | 68 | |||
Net foreign exchange (gain) / loss | 60 | 20 | (15) | |||
Changes in trade and other receivables and prepayments | (107) | (224) | 96 | |||
Changes in inventories | 40 | (28) | (88) | |||
Changes in trade and other payables | 94 | 52 | 274 | |||
Changes in provisions, pensions and other | (29) | 106 | 40 | |||
Interest paid | (644) | (714) | (736) | |||
Interest received | 23 | 58 | 60 | |||
Income tax paid | (388) | (516) | (404) | |||
Net cash flows from operating activities | 2,443 | 2,949 | 2,515 | |||
Investing activities | ||||||
Purchase of property, plant and equipment and intangible assets | (1,778) | (1,683) | (1,948) | |||
Payments on deposits | (142) | (922) | (32) | |||
Receipts from deposits | 69 | 698 | 1,066 | |||
Proceeds from sale of Italy Joint Venture | 0 | 0 | 2,830 | |||
Receipts from / (investment in) financial assets | (89) | (9) | 62 | |||
Other proceeds from investing activities, net | 30 | 28 | 19 | |||
Net cash flows from / (used in) investing activities | (1,910) | (1,888) | 1,997 | |||
Financing activities | ||||||
Proceeds from borrowings, net of fees paid | [1] | 4,621 | 2,610 | 807 | ||
Repayment of debt | (4,376) | (2,978) | (4,122) | |||
Acquisition of non-controlling interest | (1) | (613) | 0 | |||
Dividends paid to owners of the parent | (259) | (520) | (508) | |||
Dividends paid to non-controlling interests | (88) | (138) | (93) | |||
Net cash flows from / (used in) financing activities | (103) | (1,639) | (3,916) | |||
Net increase / (decrease) in cash and cash equivalents | 430 | (578) | 596 | |||
Net foreign exchange difference | (48) | (9) | (119) | |||
Cash and cash equivalents at beginning of period | 1,204 | [2] | 1,791 | [2] | 1,314 | |
Cash and cash equivalents at end of period | [2] | $ 1,586 | $ 1,204 | $ 1,791 | ||
[1] | Fees paid for borrowings were US$29 (2019: US$23, 2018: US$64) | |||||
[2] | Overdrawn amount was US$8 (2019: US$46) |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of cash flows [abstract] | |||
Fees paid for borrowings | $ 29 | $ 23 | $ 64 |
Bank overdrafts | $ 8 | $ 46 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
General Information | |
GENERAL INFORMATION | GENERAL INFORMATION VEON Ltd. ( “VEON” , the “Company” , and together with its consolidated subsidiaries, the “Group” or “we” ) was incorporated in Bermuda on June 5, 2009. The registered office of VEON is Victoria Place, 31 Victoria Street, Hamilton HM 10, Bermuda. VEON’s headquarters and the principal place of business are located at Claude Debussylaan 88, 1082 MD Amsterdam, the Netherlands. VEON generates revenue from the provision of voice, data and other telecommunication services through a range of mobile and fixed-line technologies, as well as selling equipment and accessories. VEON’s American Depository Shares ( “ADSs” ) are listed on the NASDAQ Global Select Market and VEON’s common shares are listed on Euronext Amsterdam, the regulated market of Euronext Amsterdam N.V. ( “Euronext Amsterdam” ). The consolidated financial statements were authorized by the Board of Directors for issuance on March 15, 2021. The Company has the ability to amend and reissue the consolidated financial statements. The consolidated financial statements are presented in United States dollars ( “U.S. dollar” or “US$” ). In these Notes, U.S. dollar amounts are presented in millions, except for share and per share (or ADS) amounts and as otherwise indicated. Major developments during the year ended December 31, 2020 Financing activities In July 2020, VEON successfully refinanced its existing RUB30 billion (US$422) bilateral term loan agreement with VTB Bank. For further details, refer to Note 15 . In June 2020, VEON Holdings B.V. entered into a new RUB bilateral term loan agreement with Sberbank for a total amount of RUB100 billion (US$1,450), which was used to refinance the existing Sberbank facilities. For further details please refer to Note 15 . In April 2020, VEON established a Global Medium Term Note program for the issuance of bonds in multiple currencies, with a limit equivalent to US$6,500. In June, September and November 2020, VEON issued senior unsecured notes of RUB20 billion (US$288), RUB10 billion (US$135), and US$1.25 billion respectively, under the program. For further details, refer to Note 15 . Coronavirus outbreak The global outbreak of COVID-19 and associated containment and mitigation measures implemented worldwide have had a sustained impact on our operations and financial performance. The second quarter saw the full impact on our operations of the lockdowns imposed across our markets in response to COVID-19. This resulted in material disruption to our retail operations following store closures, impacting gross connections and airtime sales. Restrictions on travel resulted in a significant decline in roaming revenues and the loss of migrant customers from our subscriber base, particularly in Russia. Although VEON’s operations remained impacted by lockdown measures throughout the second half of the year, all operations saw a recovery in the performance as our local businesses continue building resilience to the restrictions related to COVID-19. Demand for our data services remains strong, enabling us to continue to grow our data revenues. We also experienced a shift in data traffic from mobile to fixed networks as lockdowns encouraged remote working and home schooling alongside a greater use of devices through our domestic broadband services. An increase in demand for hard currencies, in part due to COVID-19, resulted in the devaluation of exchange rates in the countries in which VEON operates. As such, during the year ended December 31, 2020, the book value of assets and liabilities of our foreign operations, in U.S. dollar terms, decreased significantly, with a corresponding loss of US$623 recorded against the foreign currency translation reserve in Other Comprehensive Income. Our management has taken appropriate measures to keep our personnel safe and secure. As of the date of these financial statements, other than as described above, we have not observed any particular material adverse impacts to our business, financial condition, and results of operations. The group liquidity is sufficient to fund the business operations for at least another 12 months. Other developments In October 2020, VEON concluded an agreement for the sale of its operating subsidiary in Armenia, to Team LLC for a consideration of US$51. For further details please refer to Note 9 . In September 2020, the Dhabi Group exercised its put option to sell us its 15% shareholding in Pakistan Mobile Communications Ltd ( "PMCL" ), the Company’s subsidiary in Pakistan. For further details please refer to Note 15 . In the third quarter of 2020, VEON recorded impairment losses in respect of its operations in Russia and Kyrgyzstan of US$723 and US$64, respectively. For further details please refer to Note 1 0 . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Management analyzes the Company’s operating segments separately because of different economic environments and stages of development in different geographical areas, requiring different investment and marketing strategies. All the segments are grouped and analyzed as three main markets - our cornerstone, our growth engines and our frontier markets - representing the Company's strategy and capital allocation framework. Management evaluates the performance of the Company’s segments on a regular basis, primarily based on earnings before interest, tax, depreciation, amortization, impairment, gain / loss on disposals of non-current assets, other non-operating gains / losses and share of profit / loss of joint ventures and associates ( “Adjusted EBITDA” ) along with assessing the capital expenditures excluding certain costs such as those for telecommunication licenses and right-of-use assets ( “CAPEX excl. licenses and ROU” ). Management does not analyze assets or liabilities by reportable segments. In 2019, the Company adopted the new accounting standard IFRS 16 Leases . Accordingly, operating lease expenses are no longer recorded in the income statement but are instead considered in recording a lease liability in the statement of financial position. The Company applied a modified retrospective approach, which means that prior period comparatives were not restated. As a result, Adjusted EBITDA in 2020 and 2019 is not comparable to Adjusted EBITDA in 2018. In 2020, the Company has chosen to present results from remaining operating segments in ‘Other frontier markets’, separately to ‘HQ and eliminations’. Prior year comparatives have been adjusted to conform to current year presentation. Financial information by reportable segment for the periods ended December 31 is presented in the following tables. Inter-segment transactions between segments are not material, and are made on terms which are comparable to transactions with third parties. Total revenue Adjusted EBITDA CAPEX excl licenses and ROU 2020 2019 2018 2020 2019 2018 2020 2019 2018 Our cornerstone Russia 3,819 4,481 4,654 1,504 1,957 1,677 1,017 976 742 Our growth engines Pakistan 1,233 1,321 1,494 612 669 714 249 213 199 Ukraine 933 870 688 630 572 387 179 156 115 Kazakhstan 479 486 441 265 270 206 119 108 66 Uzbekistan 198 258 315 68 136 136 52 53 39 Our frontier markets Algeria 689 775 813 302 354 363 95 108 107 Bangladesh 537 537 521 228 222 183 126 82 93 Other frontier markets 125 172 201 22 63 54 33 38 43 Other HQ and eliminations (33) (37) (41) (177) (28) (447) 19 7 11 Total segments 7,980 8,863 9,086 3,454 4,215 3,273 1,889 1,741 1,415 The following table provides the reconciliation of consolidated Profit / (loss) before tax from continuing operations to Adjusted EBITDA for the years ended December 31: 2020 2019 2018 Profit / (loss) before tax from continuing operations 26 1,181 (248) Depreciation 1,576 1,652 1,339 Amortization 343 394 495 Impairment loss / (reversal) 785 108 858 (Gain) / loss on disposal of non-current assets 37 43 57 (Gain) / loss on disposal of subsidiaries 78 (1) (30) Finance costs 683 892 816 Finance income (23) (53) (67) Other non-operating (gain) / loss (111) (21) 68 Net foreign exchange (gain) / loss 60 20 (15) Total Segments Adjusted EBITDA 3,454 4,215 3,273 |
OPERATING REVENUE
OPERATING REVENUE | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [abstract] | |
OPERATING REVENUE | OPERATING REVENUE VEON generates revenue from the provision of voice, data and other telecommunication services through a range of wireless, fixed and broadband Internet services, as well as selling equipment and accessories. Products and services may be sold separately or in bundled packages. Revenue from contracts with customers The table below provides a breakdown of revenue from contracts with customers for the years ended December 31. In 2020, the Company has presented ‘Service revenue’ (Mobile and Fixed) separately from ‘Sale of equipment and accessories’ and ‘Other revenue’, for each reportable segment. Prior year comparatives have been adjusted to conform to current year presentation. Service revenue Sale of Equipment and accessories Other revenue Total revenue Mobile Fixed 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Our cornerstone Russia 2,917 3,485 3,679 523 539 566 366 446 396 13 11 13 3,819 4,481 4,654 Our growth engines Pakistan 1,134 1,229 1,391 — — — 11 6 8 88 86 95 1,233 1,321 1,494 Ukraine 869 812 641 59 52 44 — — — 5 6 3 933 870 688 Kazakhstan 392 379 363 78 66 73 7 2 4 2 39 1 479 486 441 Uzbekistan 196 255 312 1 2 2 — — — 1 1 1 198 258 315 Our frontier markets Algeria 685 771 801 — — — 4 2 4 — 2 8 689 775 813 Bangladesh 527 525 504 — — — — 1 5 10 11 12 537 537 521 Other frontier markets 102 135 159 19 27 32 4 8 10 — 2 — 125 172 201 Other HQ and eliminations (31) (37) (41) — — — — — — (2) — — (33) (37) (41) Total segments 6,791 7,554 7,809 680 686 717 392 465 427 117 158 133 7,980 8,863 9,086 Assets and liabilities arising from contracts with customers The following table provides a breakdown of contract balances and capitalized customer acquisition costs. December 31, 2020 December 31, 2019 Contract balances Receivables (billed) 728 748 Contract assets (unbilled) 41 38 Contract liabilities (233) (243) Capitalized costs Customer acquisition costs 128 101 ACCOUNTING POLICIES Revenue from contracts with customers Service revenue Service revenue includes revenue from airtime charges from contract and prepaid customers, monthly contract fees, interconnect revenue, roaming charges and charges for value added services ( “VAS” ). VAS includes short messages, multimedia messages, caller number identification, call waiting, data transmission, mobile internet, downloadable content, mobile finance services, machine-to-machine and other services. The content revenue relating to VAS is presented net of related costs when the VEON’s performance obligation is to arrange the provision of the services by another party (VEON acts as an agent), and gross when VEON is primarily responsible for fulfilling the obligation to provide such services to the customer. Revenue for services with a fixed term, including fixed-term tariff plans and monthly subscriptions, is recognized on a straight-line basis over time. For pay-as-you-use plans, in which the customer is charged based on actual usage, revenue is recognized on a usage basis. Some tariff plans allow customers to rollover unused services to the following period. For such tariff plans, revenue is generally recognized on a usage basis. For contracts which include multiple service components (such as voice, text, data), revenue is allocated based on stand-alone selling price of each performance obligation. The stand-alone selling price for these services is usually determined with reference to the price charged per service under a pay-as-you-use plan to similar customers. Upfront fees, including activation or connection fees, are recognized on a straight-line basis over the contract term. For contracts with an indefinite term (for example, prepaid contracts), revenue from upfront fees is recognized over the average customer life. Revenue from other operators, including interconnect and roaming charges, is recognized based on the price specified in the contract, net of any estimated retrospective volume discounts. Accumulated experience is used to estimate and provide for the discounts. All service revenue is recognized over time. Sale of equipment and accessories Equipment and accessories are usually sold to customers on a stand-alone basis, or together with service bundles. Where sold together with service bundles, revenue is allocated pro-rata, based on the stand-alone selling price of the equipment and the service bundle. The vast majority of equipment and accessories sales pertain to mobile handsets and accessories. Revenue for mobile handsets and accessories is recognized when the equipment is sold to a customer, or, if sold via an intermediary, when the intermediary has taken control of the device and the intermediary has no remaining right of return. Revenue for fixed-line equipment is not recognized until installation and testing of such equipment are completed and the equipment is accepted by the customer. All revenue from sale of equipment and accessories is recognized at a point in time. Contract balances Receivables and contracts assets mostly relate to amounts due from other operators and postpaid customers. Contract assets, often referred to as ‘Accrued receivables,’ are transferred to Receivables when the rights become unconditional, which usually occurs when the Group issues an invoice to the customer. Contract liabilities, often referred to as ‘Deferred revenue’, relate primarily to non-refundable cash received from prepaid customers for fixed-term tariff plans or pay-as-you-use tariff plans. Contract liabilities are presented as ‘Long-term deferred revenue’, ‘Short-term deferred revenue’ and ‘Customer advances’ in Note 6 . All current contract liabilities outstanding at the beginning of the year have been recognized as revenue during the year. Customer acquisition costs Certain incremental costs incurred in acquiring a contract with a customer ( “customer acquisition costs” ), are deferred in the consolidated statement of financial position, within 'Other assets' (see Note 6 ). Such costs generally relate to commissions paid to third-party dealers and are amortized on a straight-line basis over the average customer life, within ‘Selling, general and administrative expenses’. The Group applies the practical expedient available for customer acquisition costs for which the amortization would have been shorter than 12 months. Such costs relate primarily to commissions paid to third-parties upon top-up of prepaid credit by customers and sale of top-up cards. SOURCE OF ESTIMATION UNCERTAINTY Average customer life |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2020 | |
Selling, general and administrative expense [abstract] | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses consisted of the following items for the years ended December 31: 2020 2019 2018 Network and IT costs 797 791 1,176 Personnel costs 815 875 889 Customer associated costs 653 720 867 Losses on receivables 62 66 62 Taxes, other than income taxes 57 158 217 Other 257 355 486 Total selling, general and administrative expenses 2,641 2,965 3,697 In 2020, our subsidiary in Pakistan recorded a gain of PKR8.6 billion (US$52) in ‘Taxes, other than income taxes’, relating to the reversal of a non-income tax provision. Refer to Note 7 for further details. LEASES On January 1, 2019, the Company adopted IFRS 16 Leases . The Company applied a modified retrospective approach, which means that prior period comparatives were not restated. Lease expenses are no longer recorded in the income statement but are instead considered in recording a lease liability in the statement of financial position (see Note 15 ), except for short-term leases and leases for low value items which are immediately expensed as incurred. Total operating lease expense recognized in accordance with IAS 17 Leases in the consolidated income statement, primarily within "Network and IT costs", amounted to US$425 in 2018. ACCOUNTING POLICIES Customer associated costs Customer associated costs relate primarily to commissions paid to third-party dealers and marketing expenses. Certain dealer commissions are initially capitalized in the consolidated statement of financial position and subsequently amortized within "Customer associated costs", see Note 3 |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other current receivables [abstract] | |
TRADE AND OTHER RECEIVABLES | TRADE AND OTHER RECEIVABLES Trade and other receivables consisted of the following items as of December 31 : 2020 2019 Trade receivables (gross)* 769 786 Expected credit losses (198) (176) Trade receivables (net) 571 610 Other receivable, net of expected credit losses allowance 1 18 Total trade and other receivables 572 628 * Includes contract assets (unbilled receivables), see Note 3 for further details The following table summarizes the movement in the allowance for expected credit losses for the years ended December 31: 2020 2019 Balance as of January 1 176 171 Accruals for expected credit losses 62 66 Recoveries (7) (8) Accounts receivable written off (16) (31) Reclassification — (24) Foreign currency translation adjustment (17) 2 Balance as of December 31 198 176 Set out below is the information about the Group’s trade receivables (including contract assets) using a provision matrix: Days past due Contract assets Current < 30 days Between 31 and 120 days > 120 days Total December 31, 2020 Expected loss rate, % 1.0 % 1.3 % 13.6 % 40.7 % 92.6 % Trade receivables 41 468 44 27 189 769 Expected credit losses — (6) (6) (11) (175) (198) Trade receivables, net 41 462 38 16 14 571 December 31, 2019 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 ACCOUNTING POLICIES Trade and other receivables Trade and other receivables are measured at amortized cost and include invoiced amounts less expected credit losses. Expected credit losses The expected credit loss allowance ( “ECL” ) is recognized for all receivables measured at amortized cost at each reporting date. This means that an ECL is recognized for all receivables even though there may not be objective evidence that the trade receivable has been impaired. |
OTHER ASSETS AND LIABILITIES
OTHER ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets And Liabilities | |
OTHER ASSETS AND LIABILITIES | OTHER ASSETS AND LIABILITIES Other assets consisted of the following items as of December 31: 2020 2019 Other non-current assets Customer acquisition costs (see Note 3) 128 101 Tax advances (non-income tax) 33 30 Other non-financial assets 18 32 Total other non-current assets 179 163 Other current assets Advances to suppliers 91 111 Input value added tax 159 158 Prepaid taxes 43 45 Other assets 42 40 Total other current assets 335 354 Other liabilities consisted of the following items as of December 31: 2020 2019 Other non-current liabilities Long-term deferred revenue (see Note 3) 17 18 Other liabilities 11 15 Total other non-current liabilities 28 33 Other current liabilities Taxes payable (non-income tax) 372 411 Short-term deferred revenue (see Note 3) 158 161 Customer advances (see Note 3) 58 64 Other payments to authorities 95 97 Due to employees 168 197 Other liabilities 32 82 Total other current liabilities 883 1,012 |
PROVISIONS AND CONTINGENT LIABI
PROVISIONS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of other provisions [abstract] | |
PROVISIONS AND CONTINGENT LIABILITIES | PROVISIONS AND CONTINGENT LIABILITIES PROVISIONS The following table summarizes the movement in provisions for the years ended December 31: Non-income tax provisions Decommi-ssioning provision Legal provision Other provisions Total 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 As of January 1, 2020 126 138 26 70 360 Arising during the year 24 10 — 1 35 Utilized (48) (1) — (22) (71) Unused amounts reversed (10) — (3) (6) (19) Transfer and reclassification — — — — — Discount rate adjustment and imputed interest (change in estimate) — 9 — — 9 Translation adjustments and other (6) (15) (1) — (22) As of December 31, 2020 86 141 22 43 292 Non-current — 141 — — 141 Current 86 — 22 43 151 The timing of payments in respect of provisions is, with some exceptions, not contractually fixed and cannot be estimated with certainty. In addition, with respect to legal proceedings, given inherent uncertainties, there can be no guarantee that the ultimate outcome will be in line with VEON’s current expectations. See ‘Sources of estimation uncertainty’ below in this Note 7 for further details regarding assumptions and sources of uncertainty. For further details regarding risks associated with income tax and non-income tax positions, please refer to ‘Sources of estimation uncertainty’ in Note 8 . In 2020, as a result of a change in estimate, Pakistan Mobile Communications Limited ( "PMCL" ) reversed a non-income tax provision of PKR11.2 billion (US$68), of which PKR8.6 billion (US$52) was recorded as a gain in Selling, general and administration expenses. The Group has recognized a provision for decommissioning obligations associated with future dismantling of its towers in various jurisdictions. CONTINGENT LIABILITIES The Group had contingent liabilities as of December 31, 2020 as set out below. VEON - Securities Class Action On November 4, 2015, a class action lawsuit was filed in the United States against VEON and certain of its then current and former officers by Charles Kux-Kardos, on behalf of himself and other investors in the Company alleging certain violations of the U.S. federal securities laws in connection with the Company’s public disclosures relating to its operations in Uzbekistan. On December 4, 2015, a second complaint was filed by Westway Alliance Corp. that asserts essentially the same claims in connection with essentially the same disclosures. On April 27, 2016, the court consolidated the two actions and appointed Westway as lead plaintiff. On May 6, 2016, a motion for reconsideration was filed on the appointment of Westway as lead plaintiff and on September 26, 2016, the court affirmed the selection of Westway as the lead plaintiff. An amended complaint was filed on December 9, 2016. On September 19, 2017, the Court in the Southern District of New York rendered a decision granting in part VEON’s motion to dismiss the Amended Complaint. On February 9, 2018, VEON filed its Answer and Affirmative Defenses to the allegations that remain in the Amended Complaint after the Court’s September 19, 2017 Order. Motions to dismiss were filed by all the individual defendants on February 9, 2018. On April 13, 2018, plaintiff dismissed its claims voluntarily against one of the individual defendants. On August 30, 2018, the Court granted the motions to dismiss by all of the individual defendants remaining in the action, and the time for appeal has now expired. On May 17, 2019, VEON filed a motion for judgment on the pleadings, arguing that Westway lacked standing as a result of the September 19, 2017 order because it had not purchased any securities on or after the date of the earliest alleged misstatement. On May 21, 2019, the Rosen Law Firm submitted a letter to the Court on behalf of Boris Lvov seeking a pre-motion conference for leave to file a motion to intervene and substitute Lvov as lead plaintiff. On May 24, 2019, Westway filed a letter opposing Mr. Lvov’s request, and VEON filed a letter taking no position. Westway filed its opposition to VEON’s motion on June 17, 2019, and VEON filed its reply papers on June 28, 2019. On April 17, 2020, the Court denied Westway's motion and ordered VEON's motion to proceed. On March 31, 2020, VEON’s motion for judgment on the pleadings was denied without prejudice. Westway filed its Second Amended Complaint on April 14, 2020, adding three additional named plaintiffs and allegations that VEON lacked adequate internal controls as of the start date of the Alleged Class Period and had a duty to disclose that fact to investors no later than December 4, 2010. On May 15, 2020, VEON filed a motion to dismiss the Second Amended Complaint. On March 11, 2021, the Court granted VEON’s motion to dismiss the Second Amended Complaint, holding that VEON had no duty to disclose information concerning its internal controls as of the start date of the Alleged Class Period, and that Westway therefore lacked standing to bring any claims against VEON as Lead Plaintiff or otherwise. The Court ordered that the Lead Plaintiff selection process be reopened, and that any motions for appointment as Lead Plaintiff be filed by April 8, 2021. The Company intends to vigorously defend the action at all phases of the proceedings. VAT on Replacement SIMs SIM Cards Issued June 2009 to December 2011 On April 1, 2012, the National Board of Revenue ( “NBR” ) issued a demand to Banglalink Digital Communications Limited ( “Banglalink” ) for BDT 7.74 billion (US$91) for unpaid SIM tax (VAT and supplementary duty). The NBR alleged that Banglalink evaded SIM tax on new SIM cards by issuing them as replacements. On the basis of 5 random SIM card purchases made by the NBR, the NBR concluded that all SIM card replacements issued by Banglalink between June 2009 and December 2011 (7,021,834 in total) were new SIM connections and subject to tax. Similar notices were sent to three other operators in Bangladesh. Banglalink and the other operators filed separate petitions in the High Court, which stayed enforcement of the demands. In an attempt to assist the NBR in resolving the dispute, the Government ordered the NBR to form a Review Committee comprised of the NBR, the Commissioner of Taxes ( “LTU” ), Bangladesh Telecommunication Regulatory Commission ( “BTRC” ), Association of Mobile Telecom Operators of Bangladesh ( “AMTOB” ) and the operators (including Banglalink). The Review Committee identified a methodology to determine the amount of unpaid SIM tax and, after analyzing 1,200 randomly selected SIM cards issued Banglalink, determined that only 4.83% were incorrectly registered as replacements. The Review Committee’s interim report was signed off by all the parties, however, the Convenor of the Review Committee reneged on the interim report and unilaterally published a final report that was not based on the interim report or the findings of the Review Committee. The operators objected to the final report. The NBR Chairman and operators’ representative agreed that the BTRC would prepare further guidelines for verification of SIM users. Although the BTRC submitted its guidelines (under which Bangalink’s exposure was determined to be 8.5% of the original demand), the Convenor of the Review Committee submitted a supplementary report which disregarded the BTRC’s guidelines and assessed Banglalink’s liability for SIM tax to be BDT 7.62 billion (US$90). The operators refused to sign the supplementary report. On May 18, 2015, Banglalink received an updated demand from the LTU claiming Banglalink had incorrectly issued 6,887,633 SIM cards as replacement SIM cards between June 2009 and December 2011 and required Banglalink to pay BDT 5.32 billion (US$63) in SIM tax. The demand also stated that interest may be payable. Similar demands were sent to the other operators. On June 25, 2015, Banglalink filed an application to the High Court to stay the updated demand, and a stay was granted. On August 13, 2015, Banglalink filed its appeal against the demand before the Appellate Tribunal and deposited 10% of the amount demanded in order to proceed. The other operators also appealed their demands. On May 26, 2016, Banglalink presented its legal arguments and on September 28, 2016, the appeals of all the operators were heard together. The Bangladesh Appellate Tribunal rejected the appeal of Banglalink and all other operators on June 22, 2017. On July 11, 2017, Banglalink filed an appeal of the Appellate Tribunal’s judgment with the High Court Division of the Supreme Court of Bangladesh. The appeal is pending. SIM Cards Issued July 2012 to June 2015 On November 20, 2017, the LTU issued a final demand to Banglalink for BDT 1.69 billion (US$20) for unpaid tax on SIM card replacements issued by Banglalink between July 2012 and June 2015. On February 20, 2018, Banglalink filed its appeal against this demand before the Appellate Tribunal and deposited 10% of the amount demanded in order to proceed. By its judgment dated February 10, 2020, the Appellate Tribunal rejected Banglalink’s appeal. Banglalink appealed to the High Court Division. Before hearing the appeal, the Court suo moto took up as a preliminary question whether, based on new law, the matter is subject to an appeal or an application for revision. On March 2, 2021, the Court determined that an application for revision is the correct procedure and dismissed the appeal. Banglalink will file an appeal before the Appellate Division and is obligated to deposit 10% of the disputed amount in order to continue its challenge. As of December 31, 2020, the Company has recorded a provision of US$11 (2019: US$11). Dispute concerning sale of Telecel Globe Limited Global Telecom Holding S.A.E. (“GTH”) and Niel Natural Resources Investments S.A. ("Niel") entered into a Share Purchase Agreement on March 28, 2013, as amended from time to time (the “SPA”) in relation to the proposed purchase by Niel of GTH's majority stake in Telecel Globe Limited ("Telecel") and telecommunications operations in the Central African Republic and Burundi. The parties subsequently entered into three amendments to the original SPA between April and August 2013 due to Niel’s failure to timely close the intended transaction. Pursuant to the terms of the amendments, the parties extended the Longstop Date each time in exchange for payments of deposits by Niel. As Niel ultimately failed to close the intended transaction, the deposits paid to GTH were not refunded, which was in accordance with the terms of the SPA which is no longer in force. GTH completed the sale of Telecel in October 2014, to another purchaser for consideration less than had been agreed with Niel. During 2019, Niel commenced legal activities in relation to the deposit monies retained by GTH. For further details, refer to the Group’s audited annual consolidated financial statements as of and for the year ended December 31, 2019. In June 2020, a settlement agreement was reached between GTH and Niel, which was subject to Niel’s satisfaction of certain conditions precedent, whereby GTH would pay US$9 to Niel to resolve all claims and counterclaims at issue in the dispute, as well as associated proceedings brought by Niel in the Netherlands and Egypt. The US$41 remainder of the value deferred on the balance sheet was released to profit and loss, within 'Other non-operating gain / (loss)'. In November 2020, the conditions of the settlement agreement were met and the settlement payment of US$9 from GTH to Niel was made. Other contingencies and uncertainties In addition to the individual matters mentioned above, the Company is involved in other disputes, litigation and regulatory inquiries and investigations, both pending and threatened, in the ordinary course of its business. The Company’s dispute with the Pakistan Telecommunication Authority over its license renewal in Pakistan, explained in Note 15 For the ongoing matters described above, where the Company has concluded that the potential loss arising from a negative outcome in the matter cannot be estimated, the Company has not recorded an accrual for the potential loss. However, in the event a loss is incurred, it may have an adverse effect on the results of operations, liquidity, capital resources, or financial position of the Company. ACCOUNTING POLICIES Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are discounted using a current pre-tax rate if the time value of money is significant. Contingent liabilities are possible obligations arising from past events, whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. SOURCE OF ESTIMATION UNCERTAINTY The Group is involved in various legal proceedings, disputes and claims, including regulatory discussions related to the Group’s business, licenses, tax positions and investments, and the outcomes of these are subject to significant uncertainty. Management evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. Unanticipated events or changes in these factors may require the Group to increase or decrease the amount recorded for a matter that has not been previously recorded because it was not considered probable. In the ordinary course of business, VEON may be party to various legal and tax proceedings, including as it relates to compliance with the rules of the telecom regulators in the countries in which VEON operates, competition law and anti-bribery and corruption laws, including the U.S. Foreign Corrupt Practices Act ( “FCPA” |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |
INCOME TAXES | INCOME TAXES Current income tax is the expected tax expense, payable or receivable on taxable income or loss for the period, using tax rates enacted or substantively enacted at reporting date, and any adjustment to tax payable in respect of previous years. Income tax payable Current income tax payable consisted of the following items as of December 31: 2020 2019 Current tax payable 30 36 Uncertain tax provisions 145 66 Total income tax payable 175 102 The balance of uncertain tax provisions is shown net of income tax assets which can be utilized to offset future tax charges should they arise, resulting in a reduction of the current period provision by US$10 (2019: US$51), with the gross amount being US$155 (2019: US$117). VEON is involved in a number of disputes, litigation and regulatory proceedings in the ordinary course of its business, pertaining to income tax claims. The total value of these individual contingencies that are able to be quantified amounts to US$112. Due to the high level of estimation uncertainty, as described in ‘Source of estimation uncertainty’ disclosed below in this Note 8, it is not practicable for the Company to reliably estimate the financial effect for certain contingencies and therefore no financial effect has been included within the preceding disclosure. The Company does not expect any liability arising from these contingencies to have a material effect on the results of operations, liquidity, capital resources or financial position of the Company, however we note that an unfavorable outcome of some or all of the specific matters could have a material adverse impact on results of operations or cash flows for a particular period. This assessment is based on our current understanding of relevant facts and circumstances. As such, our view of these matters is subject to inherent uncertainties and may change in the future. For further details on with respect to VEON’s uncertain tax provisions and tax risks, please refer to the ‘Accounting policies’ and ‘Source of estimation uncertainty’ disclosed below in this Note 8. Income tax assets The Company reported current income tax assets of US$73 (2019: US$16). These tax assets mainly relate to advance tax payments in our operating companies which can only be offset against income tax liabilities in that relevant jurisdiction, in fiscal periods subsequent to balance sheet date. Income tax expense Income tax expense consisted of the following for the years ended December 31: 2020 2019 2018 Current income taxes Current year 404 495 477 Adjustments in respect of previous years (1) 5 9 Total current income taxes 403 500 486 Deferred income taxes Movement of temporary differences and losses (72) (36) (152) Changes in tax rates — (1) 6 Changes in recognized deferred tax assets 2 39 — Adjustments in respect of previous years 9 3 28 Other — (7) 1 Total deferred tax expense / (benefit) (61) (2) (117) Income tax expense 342 498 369 Effective tax rate The table below outlines the reconciliation between the statutory tax rate in the Netherlands (25%) and the effective income tax rates for the Group, together with the corresponding amounts, for the years ended December 31: 2020 2019 2018 Explanatory notes Profit / (loss) before tax from continuing operations 26 1,181 (248) Income tax benefit / (expense) at statutory tax rate (25%) (7) (295) 62 Difference due to the effects of: Different tax rates in different jurisdictions (28) 20 89 Certain jurisdictions in which VEON operates have income tax rates which are different to the Dutch statutory tax rate of 25%. Profitability in countries with higher tax rates (including Pakistan, Algeria and Bangladesh) has a negative impact on the effective tax rate. Non-deductible expenses (210) (90) (120) The Group incurs certain expenses which are non-deductible in the relevant jurisdiction. In 2020, as in previous years, such expenses include impairment losses (unless resulting in a change in temporary differences), certain non-income tax charges (i.e. minimum tax regimes) and some intra-group expenses (i.e. interest on internal loans). Non-taxable income 37 5 49 The Group earns certain income which is non-taxable in the relevant jurisdiction. In 2020, non-taxable income included the revaluation of contingent consideration liability, as well as a gain relating to the settlement in connection with the dispute concerning the sale of Telecel Globe Limited. For further details, refer to Note 15 and Note 7 , respectively. Adjustments in respect of previous years (3) (49) (39) The effect of prior year adjustments mainly relates to updated tax positions. Movements in (un)recognized deferred tax assets (89) (13) (354) Movements in (un)recognized deferred tax assets are primarily caused by tax losses and other credits for which no deferred tax asset has been recognized. This primarily occurs in holding entities in the Netherlands (2020: US$101, 2019: US$42, 2018: US$147) and in GTH (2020: nil, 2019: US$43, 2018: US$213. Withholding taxes (56) (50) 45 Withholding taxes are recognized to the extent that dividends from foreign operations are expected to be paid in the foreseeable future. In 2020, similar to previous years, expenses relating to withholding taxes were primarily influenced by dividends expected from Russia, Algeria and Pakistan. Uncertain tax positions (1) 6 (17) The tax legislation in the markets in which VEON operates is unpredictable and gives rise to significant uncertainties (see ‘Source of estimation uncertainty’ below). Movements in uncertain tax positions stem from such uncertainties. The impact of movements in uncertain tax positions is presented net of any corresponding deferred tax assets recognized. Change in income tax rate — 1 (6) Changes in tax rates impact the valuation of existing temporary differences. The nominal tax rates did not change in our operating jurisdictions in 2020. Nominal tax rate changes occurred in Pakistan in 2019 and 2018 and Uzbekistan in 2018. Other 15 (33) (78) In 2019, the Group recorded an increase in income tax liabilities of US$29 as a result of the settlement with the Egyptian Tax Authority for outstanding tax liabilities for GTH. Refer to Note 7 for further details. Income tax benefit / (expense) (342) (498) (369) Effective tax rate 1,315.4 % 42.2 % -148.8 % Deferred taxes The Group reported the following deferred tax assets and liabilities in the statement of financial position as of December 31: 2020 2019 Deferred tax assets 186 134 Deferred tax liabilities (127) (141) Net deferred tax position 59 (7) The following table shows the movements of net deferred tax positions in 2020: Movement in deferred taxes Opening balance Net income statement movement Other movements Closing balance Property and equipment (288) (23) 37 (274) Intangible assets (38) 19 5 (14) Trade receivables 47 1 (5) 43 Provisions 31 1 (4) 28 Accounts payable 156 7 (23) 140 Withholding tax on undistributed earnings (52) (8) — (60) Tax losses and other balances carried forwards 2,026 113 82 2,221 Non-recognized deferred tax assets (1,894) (46) (85) (2,025) Other 5 (3) (2) — Net deferred tax positions (7) 61 5 59 The following table shows the movements of net deferred tax positions in 2019: Movement 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) Unused tax losses and other credits carried forwards VEON recognizes a deferred tax asset for unused tax losses and other credits carried forwards, to the extent that it is probable that the deferred tax asset will be utilized. The amount and expiry date of unused tax losses and other carry forwards for which no deferred tax asset is recognized are as follows: As of December 31, 2020 0-5 years 6-10 years More than 10 years Indefinite Total Tax losses expiry Recognized losses — (107) — (172) (279) Recognized DTA — 27 — 49 76 Non-recognized losses (1,546) (1,006) — (6,660) (9,212) Non-recognized DTA 387 252 — 1,272 1,911 Other credits carried forwards expiry Recognized credits (19) (102) — — (121) Recognized DTA 19 102 — — 121 Non-recognized credits — — — (492) (492) Non-recognized DTA — — — 115 115 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 Losses mainly relate to our holding entities in Luxembourg (2020: US$6,285; 2019: US$6,052) and the Netherlands (2020: US$2,659; 2019: US$2,937). VEON reports the tax effect of the existence of undistributed profits that will be distributed in the foreseeable future. The Company has a deferred tax liability of US$60 (2019: US$52), relating to the tax effect of the undistributed profits that will be distributed in the foreseeable future, primarily in its Russian, Algerian and Pakistan operations. As of December 31, 2020, undistributed earnings of VEON’s foreign subsidiaries (outside the Netherlands) which are indefinitely invested and will not be distributed in the foreseeable future, amounted to US$5,241 (2019: US$6,194). Accordingly, no deferred tax liability is recognized for this amount of undistributed profits. ACCOUNTING POLICIES Income taxes Income tax expense represents the aggregate amount determined on the profit for the period based on current tax and deferred tax. In cases where the tax relates to items that are charged to other comprehensive income or directly to equity, the tax is also charged respectively to other comprehensive income or directly to equity. Uncertain tax positions The Group’s policy is to comply with the applicable tax regulations in the jurisdictions in which its operations are subject to income taxes. The Group’s estimates of current income tax expense and liabilities are calculated assuming that all tax computations filed by the Company’s subsidiaries will be subject to a review or audit by the relevant tax authorities. Uncertain tax positions are generally assessed individually, using the most likely outcome method. The Company and the relevant tax authorities may have different interpretations of how regulations should be applied to actual transactions (refer below for details regarding risks and uncertainties) Deferred taxation Deferred taxes are recognized using the liability method and thus are computed as the taxes recoverable or payable in future periods in respect of deductible or taxable temporary differences between the tax bases of assets and liabilities and their carrying amounts in the Company’s financial statements. SOURCE OF ESTIMATION UNCERTAINTY Tax risks The tax legislation in the markets in which VEON operates is unpredictable and gives rise to significant uncertainties, which could complicate our tax planning and business decisions. Tax laws in many of the emerging markets in which we operate have been in force for a relatively short period of time as compared to tax laws in more developed market economies. Tax authorities in our markets are often somewhat less advanced in their interpretation of tax laws, as well as in their enforcement and tax collection methods. Any sudden and unforeseen amendments of tax laws or changes in the tax authorities’ interpretations of the respective tax laws and/or double tax treaties, could have a material adverse effect on our future results of operations, cash flows or the amounts of dividends available for distribution to shareholders in a particular period (e.g. introduction of transfer pricing rules, Controlled Foreign Operation ( “CFC” ) legislation and more strict tax residency rules). Management believes that VEON has paid or accrued all taxes that are applicable. Where uncertainty exists, VEON has accrued tax liabilities based on management’s best estimate. From time to time, we may also identify tax contingencies for which we have not recorded an accrual. Such unaccrued tax contingencies could materialize and require us to pay additional amounts of tax. The potential financial effect of such tax contingencies are disclosed in Note 7 and above in this Note 8, unless not practicable to do so. Uncertain tax positions Uncertain tax positions are recognized when it is probable that a tax position will not be sustained. The expected resolution of uncertain tax positions is based upon management’s judgment of the likelihood of sustaining a position taken through tax audits, tax courts and/or arbitration, if necessary. Circumstances and interpretations of the amount or likelihood of sustaining a position may change through the settlement process. Furthermore, the resolution of uncertain tax positions is not always within the control of the Group and it is often dependent on the efficiency of the legal processes in the relevant taxing jurisdictions in which the Group operates. Issues can, and often do, take many years to resolve. Recoverability of deferred tax assets |
SIGNIFICANT TRANSACTIONS
SIGNIFICANT TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
Significant Transactions | |
SIGNIFICANT TRANSACTIONS | SIGNIFICANT TRANSACTIONS SIGNIFICANT TRANSACTIONS IN 2020 Sale of Armenian operations In October 2020, VEON concluded an agreement for the sale of its operating subsidiary in Armenia, to Team LLC for a consideration of US$51. Accordingly the net carrying value of assets amounting US$33 were derecognized along with reclassification of cumulative foreign currency translation reserve of US$96 to profit and loss, resulting in the net loss of US$78. GTH restructuring In 2020, VEON continued the restructuring of Global Telecom Holding S.A.E. ( “GTH” ) which commenced in 2019 (see further details below), with the intragroup transfer of Mobilink Bank and GTH Finance B.V. completed in March and April 2020, respectively. As the operating assets of GTH had previously been, and will continue to be, fully consolidated within the balance sheet of the VEON Group, there was no material impact on these consolidated financial statements stemming from these intragroup transfers. The intragroup transfer for Djezzy is continuing. SIGNIFICANT TRANSACTIONS IN 2019 AND 2018 Mandatory tender offer for shares of GTH In August 2019, VEON completed the purchase of 1,914,322,110 shares, representing approximately 40.55% of GTH’s issued shares, in connection with its Mandatory Tender Offer (“MTO”) which had commenced in July 2019. The total price for the purchase of such shares was EGP 9,725 million (approximately US$587), reflecting the offer price per share of EGP 5.08. Following the completion of the MTO and as a result of further purchases by GTH, as of December 31, 2019, VEON and GTH hold approximately 99.54% of GTH's total outstanding equity. The MTO was funded by a combination of cash on hand and utilization of undrawn credit facilities (refer to Note 15 for further details). These transactions represent a purchase of non-controlling interests ("NCI") without a change of control. Consequently, the difference between the book value of NCI (negative value of US$1,986) and the cost of acquisition (US$608) was recorded directly within ‘Other capital reserves’in the statement of changes in equity (loss of US$2,594). Following the successful completion of the MTO, VEON continued with the restructuring of GTH, which included successful delisting of GTH’s shares from the Egyptian Exchange and the approval by GTH shareholders of VEON’s offer to acquire substantially all of the operating assets of GTH, both of which occurred on September 9, 2019. Following that approval, VEON completed the intragroup transfers of Jazz, Banglalink and Med Cable. The operating assets of GTH had previously been, and will continue to be, fully consolidated within the balance sheet of the VEON Group, and as such, there is no material impact on these consolidated financial statements stemming from these asset transfers. Revised technology infrastructure partnership with Ericsson In February 2019, the Company announced a revised arrangement with Ericsson to upgrade its core IT systems in several countries in the coming years and to release Ericsson from the development and delivery of the Full Stack Revenue Manager Solution. This revised arrangement enables VEON to continue upgrading IT infrastructure with new digital business support systems (DBSS) using existing software from Ericsson which is already deployed in certain operating companies within VEON. The parties signed binding terms to vary the existing agreements and as a result VEON received US$350 during the first half of 2019. The settlement amount was recorded in the income statement within ‘Other operating income’. Termination of network sharing in Kazakhstan In April 2019, the Group received a settlement amount of US$38 from Kcell Joint Stock Company (“Kcell”), related to the termination of the network sharing agreement between Kcell and our subsidiary in Kazakhstan. This amount has been recorded in "Other revenue/other income" within the consolidated income statement. Sale of Italy Joint Venture In July 2018, VEON entered into an agreement with CK Hutchison Holdings Ltd for the sale of its 50% stake in the Italy Joint Venture. In September 2018 the transaction was completed, and cash consideration was received in the amount of EUR 2,450 (US$2,830). Share of profit / (loss) of the Italy Joint Venture for 2018 and 2017 was reclassified to “Profit / (loss) after tax from discontinued operations.” The effect of the disposal is detailed below: 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 |
IMPAIRMENT OF ASSETS
IMPAIRMENT OF ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |
IMPAIRMENT OF ASSETS | IMPAIRMENT OF ASSETS Property and equipment and intangible assets are tested regularly for impairment. The Company assesses, at the end of each reporting period, whether there exist any indicators that an asset may be impaired (i.e. asset becoming idle, damaged or no longer in use). If there are such indicators, the Company estimates the recoverable amount of the asset. Impairment losses of continuing operations are recognized in the income statement in a separate line item. Goodwill is tested for impairment annually (at September 30) or when circumstances indicate the carrying value may be impaired. Refer to N ote 12 for an overview of the carrying value of goodwill per cash-generating unit (“CGU”). The Company’s impairment test is primarily based on fair value less cost of disposal calculations (Level 3 in the fair value hierarchy) using a discounted cash flow model, based on cash flow projections from business plans prepared by management. The Company considers the relationship between its market capitalization and its book value, as well as weighted average cost of capital and the quarterly financial performances of each CGU when reviewing for indicators of impairment in interim periods. In addition to the above, the Company also considered the impact of COVID-19 when reviewing for indicators of impairment (refer to N o te 1 ) . Impairment losses in 2020 In recent years, Beeline Russia has seen a decline in its subscriber and revenue market share on the back of competitive pressures in the market, which have impacted both revenues and profitability. This underperformance has negatively impacted the fair value of our Russian business, and over time has eroded the existing headroom over the book value of the business. The impact of a weaker Russian ruble, along with ongoing COVID lockdowns and associated travel restrictions, have had a negative impact on consumer spending, which weakened particularly during the third quarter of 2020. Together with a slower than anticipated recovery in Beeline’s ARPU, which has in turn impacted our future projected revenue, a revision to our previous estimates has been deemed necessary. Based on these revisions, VEON recorded an impairment of US$723 against the carrying value of goodwill in Russia in the third quarter of 2020. The recoverable amount of the CGU of US$3,001 was determined based on fair value less costs of disposal calculations (Level 3 in the fair value hierarchy) using a discounted cash flow model, based on cash flow projections from business plans prepared by management. Also in the third quarter of 2020, due to the unstable political environment and uncertainties arising with respect to the recoverability of our operating assets in Kyrgyzstan, VEON has fully impaired the carrying value of all operating assets of Kyrgyzstan. As a result, the Company recorded a total impairment loss of US$64. Additionally, in regard with the Company’s commitment to network modernization, the Company continuously re-evaluates the plans for its existing network, primarily with respect to equipment purchased but not installed, and consequently recorded an impairment loss of US$5. Property and equipment Intangible assets Goodwill Other Total impairment 2020 Russia — — 723 — 723 Kyrgyzstan 38 8 — 18 64 Other 5 — — (7) (2) 43 8 723 11 785 Impairment losses in 2019 and 2018 Due to operational performance of operating companies and the Company’s continuous re-evaluation of its equipment purchased but not installed, in 2019 and 2018 the Company recorded an impairment of US$108 and US$858, respectively. Impairment losses were allocated first to the existing carrying value of goodwill, and then subsequently to property and equipment and intangible assets based on relative carrying values. Property and equipment Intangible assets Goodwill Total impairment 2019 Kyrgyzstan 33 3 54 90 Other 18 — — 18 51 3 54 108 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 KEY ASSUMPTIONS The recoverable amounts of CGUs have been determined based on fair value less costs of disposal calculations, using cash flow projections from business plans prepared by management. The Company bases its impairment calculation on detailed budgets and forecast calculations which are prepared separately for each of the Company’s CGUs. These budgets and forecast calculations are prepared for a period of five The tables below show key assumptions used in fair value less costs of disposal calculations for CGUs with material goodwill or those CGUs for which an impairment has been recognized. Discount rates 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 and small capitalization premium is sourced from independent market analysts. 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 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. Discount rate 2020 2019 2018 Russia 10.1 % 9.1 % 10.3 % Algeria 11.6 % 10.4 % 11.1 % Pakistan 18.2 % 14.5 % 14.4 % Bangladesh — — 12.2 % Kazakhstan 10.3 % 9.2 % 8.4 % Kyrgyzstan * — 14.1 % 14.8 % Uzbekistan 13.8 % 14.5 % 13.1 % Armenia — — 12.5 % Georgia — — 10.6 % * In 2020, VEON fully impaired the carrying value of all operating assets of Kyrgyzstan, therefore discount rate was not determined Revenue growth rates The revenue growth rates during the forecast period vary based on numerous factors, including size of market, GDP (Gross Domestic Product), foreign currency projections, traffic growth, market share and others. 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. Average annual revenue growth rate during forecast period Terminal growth rate 2020 2019 2018 2020 2019 2018 Russia 4.3 % 1.4 % 1.1 % 1.8 % 1.6 % 1.3 % Algeria 4.3 % 1.0 % 0.7 % 1.0 % 1.0 % 0.9 % Pakistan 9.7 % 3.9 % 3.5 % 5.8 % 2.7 % 4.0 % Bangladesh — — 0.6 % — — 4.0 % Kazakhstan 5.3 % 5.3 % 2.8 % 3.1 % 3.3 % 1.1 % Kyrgyzstan * — 1.6 % 2.8 % — 5.0 % 5.0 % Uzbekistan 3.2 % 4.1 % 5.5 % 5.1 % 6.0 % 6.3 % Armenia — — 0.2 % — — 0.8 % Georgia — — 2.1 % — — 3.0 % * In 2020, VEON fully impaired the carrying value of all operating assets of Kyrgyzstan, therefore revenue growth rates were not determined Operating margin The Compan y 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 and forecast calculations 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 operating margin during the forecast period Terminal period operating margin 2020 2019 2018 2020 2019 2018 Russia 31.2 % 34.7 % 34.6 % 35.7 % 34.5 % 34.7 % Algeria 39.9 % 42.6 % 44.0 % 40.4 % 43.1 % 45.0 % Pakistan 42.0 % 47.3 % 47.9 % 44.6 % 47.3 % 49.1 % Bangladesh — — 35.4 % — — 35.7 % Kazakhstan 49.5 % 49.9 % 46.5 % 50.0 % 50.1 % 46.7 % Kyrgyzstan * — 31.4 % 39.9 % — 33.0 % 39.0 % Uzbekistan 34.0 % 51.4 % 43.9 % 34.0 % 52.4 % 44.1 % Armenia — — 23.6 % — — 23.4 % Georgia — — 24.5 % — — 25.6 % * In 2020, VEON fully impaired the carrying value of all operating assets of Kyrgyzstan, therefore operating margin assumptions were not determined CAPEX CAPEX is defined as purchases of property and equipment and intangible assets excluding licenses, goodwill and right-of-use assets. The cash flow forecasts for capital expenditures are based on the budget and forecast calculations and include the network roll-outs plans and license requirements. 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. Payments for right-of-use assets are considered in the operating margin as described above. Average CAPEX as a percentage of revenue during the forecast period Terminal period CAPEX as a percentage of revenue 2020 2019 2018 2020 2019 2018 Russia 27.9 % 19.9 % 19.8 % 21.0 % 18.5 % 15.0 % Algeria 15.2 % 12.5 % 15.1 % 14.0 % 12.0 % 14.0 % Pakistan 19.6 % 17.2 % 16.7 % 18.9 % 17.1 % 14.0 % Bangladesh — — 14.9 % — — 12.0 % Kazakhstan 19.8 % 20.0 % 17.7 % 19.0 % 19.5 % 17.0 % Kyrgyzstan * — 26.9 % 17.2 % — 20.0 % 15.0 % Uzbekistan 21.4 % 19.4 % 16.2 % 21.0 % 20.1 % 16.2 % Armenia — — 21.0 % — — 14.0 % Georgia — — 23.8 % — — 14.0 % * In 2020, VEON fully impaired the carrying value of all operating assets of Kyrgyzstan, therefore CAPEX assumptions were not determined SENSITIVITY TO CHANGES IN ASSUMPTIONS The following table illustrates the potential additional impairment for the Russia CGU and the potential impairment or remaining headroom for the Algeria CGU if certain key parameters would adversely change by one percentage point within both the explicit forecast and terminal periods ('+/- 1.0 pp'), as well as the change in key assumptions required in order for the recoverable amount of the CGU to be equal to its book value ('Break-even'). Any additional adverse changes in the key parameters by more than one percentage point would increase the amount of impairment exposure approximately proportionally. Russia Algeria Sensitivity analysis Assumption used * +/- 1.0 pp Break-even ** Assumption used * +/- 1.0 pp Break-even Discount rate 10.1% 11.1% 10.1% 11.6% 12.6% 12.2% Change in key assumption 0.0 pp 1.0 pp 0.0 pp 0.0 pp 1.0 pp 0.6 pp Headroom / (impairment) — (473) — 75 (44) — Average annual revenue growth rate 3.9% 2.9% 3.9% 3.8% 2.8% 2.9% Change in key assumption 0.0 pp (1.0) pp 0.0 pp 0.0 pp (1.0) pp (0.9) pp Headroom / (impairment) — (250) — 75 (12) — Average operating margin 32.0% 31.0% 32.0% 40.0% 39.0% 38.7% Change in key assumption 0.0 pp (1.0) pp 0.0 pp 0.0 pp (1.0) pp (1.3) pp Headroom / (impairment) — (375) — 75 19 — Average CAPEX / revenue 26.8% 27.8% 26.8% 15.0% 16.0% 16.4% Change in key assumption 0.0 pp 1.0 pp 0.0 pp 0.0 pp 1.0 pp 1.4 pp Headroom / (impairment) — (380) — 75 22 — * Combined average based on explicit forecast period of five years (2021-2025) and terminal period (2026), excludes intervening period of 2020 ** Following the recognition of an impairment loss in the third quarter of 2020, the book value of the Russia CGU is equal to its recoverable amount. As such, the 'break-even' assumptions for the Russia are equivalent to the Assumptions used. SOURCE OF ESTIMATION UNCERTAINTY The Group has significant investments in property and equipment, intangible assets, goodwill and other investments. Estimating recoverable amounts of assets and CGUs must, in part, be based on management’s evaluations, including the determination of the appropriate CGUs, the relevant discount rate, estimation of future performance, the revenue-generating capacity of assets, timing and amount of future purchases of property and equipment, assumptions of future market conditions and the long-term growth rate into perpetuity (terminal value). In doing this, management needs to assume a market participant perspective. Changing the assumptions selected by management, in particular, the discount rate and growth rate assumptions used to estimate the recoverable amounts of assets, could significantly impact the Group’s impairment evaluation and hence results. A significant part of the Group’s operations is in countries with emerging markets. The political and economic situation in these countries may change rapidly and recession may potentially have a significant impact on these countries. On-going recessionary effects in the world economy and increased macroeconomic risks impact our assessment of cash flow forecasts and the discount rates applied. There are significant variations between different markets with respect to growth, mobile penetration, average revenue per user ( “ARPU” |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The following table summarizes the movement in the net book value of property and equipment for the years ended December 31: Net book value Telecomm-unications equipment Land, Office and other equipment Equipment not installed and assets under construction Right-of-use assets Total As of January 1, 2019 3,937 202 393 329 2,023 6,884 Additions 80 — 8 1,453 299 * 1,840 * 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) — — Translation adjustment 177 20 33 28 146 404 As of December 31, 2019 4,306 216 417 416 1,985 7,340 Additions 47 2 32 1,626 446 2,153 Disposals (50) (5) (10) (12) (14) (91) Depreciation charge for the year (1,009) (28) (123) — (416) (1,576) Impairment (28) (1) (2) (7) (5) (43) Transfers 1,282 5 111 (1,396) (2) — Translation adjustment (498) (30) (57) (59) (260) (904) As of December 31, 2020 4,050 159 368 568 1,734 6,879 Cost 10,893 377 1,330 687 2,526 15,813 Accumulated depreciation and impairment (6,843) (218) (962) (119) (792) (8,934) * Prior year comparatives have been re-presented to conform with current year presentation. There were no material changes in estimates related to property and equipment in 2020 other than the impairment described in Note 1 0 of US$43 (2019: US$51) and lease term reassessments in Russia and Ukraine (included in ‘Additions’) which had the effect of increasing right-of-use assets by US$181. Please refer to Note 15 for more information regarding Source of estimation uncertainty for lease terms. During 2020, VEON acquired property and equipment in the amount of US$601 (2019: US$480), which were not paid for as of year-end. Property and equipment pledged as security for bank borrowings amounts to US$865 as of December 31, 2020 (2019: US$652), and primarily relate to securities for borrowings of PMCL. The following table summarizes the movement in the net book value of right-of-use assets ( "ROU" ) for the year ended December 31: 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 236 63 — 299 Disposals (27) (6) (2) (35) Depreciation charge for the year (306) (140) (2) (448) Impairment — — — — Transfers 18 (18) — — Translation adjustment 116 30 — 146 As of December 31, 2019 1,638 344 3 1,985 Additions 339 102 5 446 Disposals (14) — — (14) Depreciation charge for the year (309) (105) (2) (416) Impairment (1) (4) — (5) Transfers — (2) — (2) Translation adjustment (217) (42) (1) (260) As of December 31, 2020 1,436 293 5 1,734 Cost 2,021 496 9 2,526 Accumulated depreciation and impairment (585) (203) (4) (792) COMMITMENTS Capital commitments for the future purchase of equipment are as follows as of December 31: 2020 2019 Less than 1 year 747 677 Between 1 and 5 years 19 19 Total commitments 766 696 Capital commitments arising from telecommunications licenses VEON’s ability to generate revenue in the countries it operates is dependent upon the operation of the wireless telecommunications networks authorized under its various licenses for GSM-900/1800, “3G” (UMTS / WCDMA) mobile radiotelephony communications services and “4G” (LTE). Under the license agreements, operating companies are subject to certain commitments, such as territory or population coverage, level of capital expenditures, and number of base stations to be fulfilled within a certain timeframe. If we are found to be involved in practices that do not comply with applicable laws or regulations, we may be exposed to significant fines, the risk of prosecution or the suspension or loss of our licenses, frequency allocations, authorizations or various permissions, any of which could harm our business, financial condition, results of operations, or cash flows. After expiration of the license, our operating companies might be subject to additional payments for renewals, as well as new license capital and other commitments. ACCOUNTING POLICIES Property and equipment is stated at cost, net of any accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The useful of life of VEON's assets generally fall within the following ranges: 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 Each asset’s residual value, useful life and method of depreciation is reviewed at the end of each financial year and adjusted prospectively, if necessary. SOURCE OF ESTIMATION UNCERTAINTY Depreciation and amortization of non-current assets Depreciation and amortization expenses are based on management estimates of useful life, residual value and amortization method of property and equipment and intangible assets. Estimates may change due to technological developments, competition, changes in market conditions and other factors and may result in changes in the estimated useful life and in the amortization or depreciation charges. Technological developments are difficult to predict and our views on the trends and pace of developments may change over time. Some of the assets and technologies in which the Group invested several years ago are still in use and provide the basis for new technologies. The useful lives of property and equipment and intangible assets are reviewed at least annually, taking into consideration the factors mentioned above and all other relevant factors. Estimated useful lives for similar types of assets may vary between different entities in the Group due to local factors such as growth rate, maturity of the market, historical and expected replacements or transfer of assets and quality of components used. Estimated useful life for right-of-use assets is directly impacted by the equivalent lease term, refer to N ote 1 5 for more information regarding Source of estimation uncertainty for lease terms. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The following table summarizes the movement in the net book value of intangible assets for the years ended December 31: Net book value Telecommuni-cation licenses, frequencies & permissions Software Brands and trademarks Customer relationships Other intangible assets Goodwill Total As of January 1, 2019 1,195 264 178 177 25 3,816 5,655 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 Additions 53 188 3 5 5 13 267 Disposals — (6) — — — — (6) Amortization charge for the year (139) (159) (23) (15) (7) — (343) Impairment (5) (3) — — — (723) (731) Transfer — 6 — — (6) — — Translation adjustment (88) (41) (12) (16) 1 (567) (723) As of December 31, 2020 921 301 117 116 15 2,682 4,152 Cost 2,170 1,041 457 1,530 148 4,845 10,191 Accumulated amortization and impairment (1,249) (740) (340) (1,414) (133) (2,163) (6,039) During 2020, there were no material change in estimates related to intangible assets other than the impairment described in Note 1 0 During 2020, VEON acquired intangible assets in the amount of US$56 (2019: US$49), which were not yet paid for as of year-end. GOODWILL During the year, the movement in goodwill for the Group, per CGU , consisted of the following: CGU December 31, Impairment Translation adjustment Addition December 31, Russia 1,131 (723) (424) 13 2,265 Algeria 1,053 — (114) — 1,167 Pakistan 324 — (11) — 335 Kazakhstan 140 — (14) — 154 Uzbekistan 34 — (4) — 38 Total 2,682 (723) (567) 13 3,959 CGU December 31, Impairment Translation adjustment December 31, 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 COMMITMENTS Capital commitments for the future purchase of intangible assets are as follows as of December 31: 2020 2019 Less than 1 year 31 77 Between 1 and 5 years — 5 Total commitments 31 82 ACCOUNTING POLICIES Intangible assets acquired separately are carried at cost less accumulated amortization and impairment losses. Intangible assets with a finite useful life are generally amortized with the straight-line method over the estimated useful life of the intangible asset. The amortization period and the amortization method for intangible assets with finite useful lives are reviewed at least annually and fall within the following ranges: Class of intangible asset Useful life Telecommunications licenses, frequencies and permissions 3 - 20 years Software 3 - 10 years Brands and trademarks 3 - 15 years Customer relationships 10 - 21 years Other intangible assets 4 - 10 years Goodwill is recognized for the future economic benefits arising from net assets acquired that are not individually identified and separately recognized. Goodwill is not amortized but is tested for impairment annually and as necessary when circumstances indicate that the carrying value may be impaired, see Note 1 0 for further details. SOURCE OF ESTIMATION UNCERTAINTY Refer also to Note 1 1 for further details regarding source of estimation uncertainty. Depreciation and amortization of non-current assets Estimates in the evaluation of useful lives for intangible assets include, but are not limited to, the estimated average customer relationship based on churn, the remaining license or concession period and the expected developments in technology and markets. |
INVESTMENTS IN SUBSIDIARIES
INVESTMENTS IN SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of subsidiaries [abstract] | |
INVESTMENTS IN SUBSIDIARIES | INVESTMENTS IN SUBSIDIARIES The Company held investments in material subsidiaries for the years ended December 31 as detailed in the table below. The equity interest presented represents the economic rights available to the Company. Equity interest held by the Group Name of significant subsidiary Country of incorporation Nature of subsidiary 2020 2019 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 % 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 99.6 % 99.5 % Omnium Telecom Algérie S.p.A.* Algeria Holding 45.4 % 45.4 % Optimum Telecom Algeria S.p.A.* Algeria Operating 45.4 % 45.4 % Pakistan Mobile Communications Limited Pakistan Operating 85.0 % 85.0 % Banglalink Digital Communications Limited Bangladesh Operating 100.0 % 100.0 % * The Group has concluded that it controls Omnium Telecom Algérie S.p.A and Optimum Telecom Algeria S.p.A, see 'Significant accounting judgments' below for further details. The Company is subject to legal restrictions to distribute accumulated profits from Algeria by virtue of local shareholding agreement (i.e. it is allowed only to distribute 42.5% of current year profit), and the rest is restricted. MATERIAL PARTLY-OWNED SUBSIDIARIES Financial information of subsidiaries that have material non-controlling interests ( “NCIs” ) is provided below: Equity interest held by NCIs Book values of Profit / (loss) attributable to material NCIs Name of significant subsidiary 2020 2019 2020 2019 2020 2019 LLP “KaR-Tel” ( “Kar-Tel” ) 25.0 % 25.0 % 97 106 26 27 Omnium Telecom Algérie S.p.A. ( “OTA” ) 54.4 % 54.4 % 783 871 43 55 The summarized financial information of these subsidiaries before intercompany eliminations for the years ended December 31 are detailed below. Summarized income statement Kar-Tel OTA 2020 2019 2018 2020 2019 2018 Operating revenue 446 461 410 689 775 813 Operating expenses (316) (319) (319) (564) (621) (754) Other (expenses) / income 4 (6) 6 (17) (17) (11) Profit / (loss) before tax 134 136 97 108 137 48 Income tax expense (28) (29) (20) (29) (36) (47) Profit / (loss) for the year 106 107 77 79 101 1 Total comprehensive income / (loss) 106 107 77 79 101 1 Attributed to NCIs 26 27 19 43 55 1 Dividends paid to NCIs — — — 46 69 76 Summarized statement of financial position Kar-Tel OTA 2020 2019 2020 2019 Property and equipment 276 271 492 600 Intangible assets 94 86 116 158 Other non-current assets 162 185 1,071 1,187 Trade and other receivables 21 18 31 34 Cash and cash equivalents 37 39 67 67 Other current assets 31 12 50 42 Debt and derivatives (75) (63) (102) (134) Provisions (6) (6) (23) (22) Other liabilities (152) (119) (267) (334) Total equity 388 423 1,435 1,598 Attributed to: Equity holders of the parent 291 317 652 727 Non-controlling interests 97 106 783 871 Summarized statement of cash flows Kar-Tel OTA 2020 2019 2018 2020 2019 2018 Net operating cash flows 184 199 148 211 305 245 Net investing cash flows (88) (84) (42) (102) (84) (118) Net financing cash flows (97) (104) (90) (103) (205) (193) Net foreign exchange difference (2) — (3) (5) (1) (5) Net increase / (decrease) in cash equivalents (3) 11 13 1 15 (71) SIGNIFICANT ACCOUNTING JUDGMENTS Control over subsidiaries |
OTHER NON-OPERATING GAIN _ (LOS
OTHER NON-OPERATING GAIN / (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
Other Non-Operating Gain (Loss) | |
OTHER NON-OPERATING GAIN / (LOSS) | OTHER NON-OPERATING GAIN / (LOSS) Other non-operating gains / (losses) consisted of the following for the years ended December 31: 2020 2019 2018 Ineffective portion of hedging activities * 15 20 8 Change of fair value of other derivatives 6 (17) (58) Gain /(loss) from money market funds * 12 21 — Loss from early debt redemption — — (30) Other gains / (losses) 78 (3) 12 Other non-operating gain / (loss), net 111 21 (68) * Prior year comparatives have been re-presented to conform with current year presentation. Included in ‘Other gains / (losses)' in 2020 is a gain of US$41 relating to the revaluation of contingent consideration liability, as well as a gain of US$41 relating to the settlement in connection with the dispute concerning the sale of Telecel Globe Limited. For further details, refer to Note 15 and Note 7 |
INVESTMENTS, DEBT AND DERIVATIV
INVESTMENTS, DEBT AND DERIVATIVES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
INVESTMENTS, DEBT AND DERIVATIVES | FINANCING ACTIVITIES OF THE GROUPINVESTMENTS, DEBT AND DERIVATIVES INVESTMENTS AND DERIVATIVE ASSETS The Company holds the following investments and derivatives as of December 31: Carrying value 2020 2019 At fair value Derivatives not designated as hedges 20 11 Derivatives designated as net investment hedges 3 — Investments in debt instruments * 75 34 Other 8 — 106 45 At amortized cost Security deposits and cash collateral 325 256 Other investments 39 16 364 272 Total investments and derivatives 470 317 Non-current 305 235 Current 165 82 * Investments in debt instruments relate to government bonds or bills and are measured at fair value through other comprehensive income (with recycling). Security deposits The ex-Warid license renewal was due in May 2019. Pursuant to directions from the Islamabad High Court, the Pakistan Telecommunication Authority ( “PTA” ) issued a license renewal decision on July 22, 2019 requiring payment of US$40 per MHz for 900 MHz spectrum and US$30 per MHz for 1800 MHz spectrum, equating to an aggregate price of approximately US$450 (excluding applicable taxes of approximately 13%). 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 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 asset in the statement of financial position. In May, 2020 a further US$57 was paid under protest, presented within 'Receipts from / (payment on) deposits' in the statement of cash flows. The most recent hearing on this matter was concluded before the Islamabad High Court on March 1, 2021 and a judgment is now pending. DEBT AND DERIVATIVES The Company holds the following outstanding debt and derivatives as of December 31: Carrying value 2020 2019 At fair value Derivatives not designated as hedges 52 52 Derivatives designated as net investment hedges 1 161 Contingent consideration — 41 53 254 At amortized cost Principal amount outstanding 7,678 7,519 Interest accrued 85 79 Discounts, unamortized fees, hedge basis adjustment (5) (10) Bank loans and bonds 7,758 7,588 Lease liabilities 1,912 2,083 Put-option liability over non-controlling interest 273 342 Other financial liabilities 60 77 10,003 10,090 Total debt and derivatives 10,056 10,344 Non-current 8,832 7,759 Current 1,224 2,585 Bank loans and bonds The Company had the following principal amounts outstanding for interest-bearing loans and bonds at December 31: Principal amount outstanding Borrower Type of debt Guarantor Currency Interest rate Maturity 2020 2019 VEON Holdings Loans None RUB 8.75% to 10.0% 2022 — 2,303 VEON Holdings Loans None RUB 7.35% to 7.50% 2024-2025 812 — VEON Holdings Loans None RUB CBR Key Rate + 1.85% to 2.20% 2023-2025 1,083 — VEON Holdings Notes None US$ 5.95% 2023 529 529 VEON Holdings Notes None US$ 3.95% to 4.95% 2024 533 1,133 VEON Holdings Notes PJSC VimpelCom US$ 7.50% 2022 417 417 VEON Holdings Notes None US$ 3.38% 2027 1,250 — VEON Holdings Notes None US$ 7.25% 2023 700 — VEON Holdings Notes None RUB 6.30% to 6.50% 2025 406 — VEON Holdings Notes None US$ 4.00% 2025 1,000 700 GTH Finance B.V. Notes VEON Holdings US$ 6.25% to 7.25% 2020-2023 — 1,200 PJSC VimpelCom, via VIP Finance Ireland Eurobonds None US$ 7.75% 2021 262 262 PMCL Loans None PKR 6mKIBOR + 0.35% 2022 111 192 PMCL Loans None PKR 6mKIBOR + 0.8% 2020 — 34 PMCL Loan EKN * US$ 6mLIBOR + 1.9% 2020 — 75 PMCL Loan None PKR 6mKIBOR + 0.55% 2026 273 121 PMCL Loan None PKR 6mKIBOR 2023 29 41 Banglalink Loan None US$ 3mLIBOR + 2.50% 2020 — 300 Banglalink Loans None BDT Average bank deposit rate +3.0% to 4.25% 2021-2022 80 116 PJSC Kyivstar Loans None UAH NBU Key rate + 3.00% 2021-2023 56 — PJSC Kyivstar Loans None UAH 10.15% to 11.00% 2023-2025 85 — Other bank loans and bonds 52 96 Total bank loans and bonds 7,678 7,519 * Exportkreditnämnden (The Swedish Export Credit Agency) SIGNIFICANT CHANGES IN DEBT AND DERIVATIVES Reconciliation of cash flows from financing activities Bank loans and bonds Lease liabilities Total 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, 2019 7,588 2,083 9,671 Cash flows Proceeds from borrowings, net of fees paid 4,621 — 4,621 Repayment of debt (4,054) (322) (4,376) Interest paid (494) (150) (644) Non-cash movements Interest and fee accruals 546 156 702 Lease additions, disposals, impairment and modifications — 432 432 Foreign currency translation (398) (286) (684) Other non-cash movements (51) — (51) Balance as of December 31, 2020 7,758 1,913 9,671 FINANCING ACTIVITIES IN 2020 Optional early redemption of US$600 million 3.95% Senior notes due June 2021 In December 2020, VEON Holdings B.V. completed optional early redemption of all of its outstanding US$600 million 3.95% Senior Notes due June 2021, pursuant to Condition 5.3 of the 2021 Notes. The Notes were redeemed in full at a redemption price equal to 101.00% of the principal amount thereof, plus accrued and unpaid interest and additional amounts due thereon. Financing activities in Ukraine In December 2020, VEON's operating company in Ukraine, Kyivstar, signed three bilateral unsecured loan agreements with Raiffeisen Bank Aval Joint Stock Company (“Raiffeisen”), Joint Stock Company Alfa-Bank (“Alfa-Bank”) and Joint Stock Company OTP Bank ( “OTP” ), for an aggregate amount of UAH4.1 billion (US$146). The loan agreement with Raiffeisen has a 5-year term with a fixed interest rate of 11.00%, and the loan agreements with Alfa-Bank and OTP each have a 3-year term with a floating rate equal to NBU Key Rate + 3.00% and a fixed interest rate of 10.15% respectively. Exercise of 15% PMCL put option In September 2020, the Dhabi Group exercised its put option to sell us its 15% shareholding in PMCL, the Company’s subsidiary in Pakistan. VEON updated the fair value of its put option liability following the completion of an independent valuation process which determined a fair value for the shareholding of US$273, resulting in a gain of US$59 recorded in ‘Finance costs’ within the Consolidated Income Statement. Completion of the transfer remains subject to the conclusion of the contractual transfer mechanics with the Dhabi Group. Once the transaction is completed, VEON will indirectly own 100% of PMCL. Global Medium Term Note program In April 2020, VEON Holdings B.V. established a Global Medium Term Note program for the issuance of bonds (the "MTN Program"), with a program limit of US$6,500, or the equivalent thereof in other currencies. In June, September and November 2020, VEON Holdings B.V. issued senior unsecured notes of RUB20 billion (US$288), RUB10 billion (US$135) and US$1.25 billion, respectively, under the MTN Program, maturing in June 2025, September 2025 and November 2027. Refinancing of loan agreement with VTB In July 2020, VEON Holdings B.V. successfully refinanced its existing RUB30 billion (US$422), bilateral term loan agreement with VTB Bank. This refinancing extended the final maturity of the existing loan between VTB Bank and VEON Holdings B.V. to July 2025 and amended the interest cost from a fixed rate of 8.75% to floating rate equal to CBR Key Rate + 1.85 p.p. Refinancing of loan agreement with Sberbank In June 2020, VEON Holdings B.V. entered into a new RUB bilateral term loan agreement with Sberbank. The agreement comprises four facilities for a total amount of RUB100 billion (US$1,450) with final maturity dates ranging between two In July 2020, VEON drew down the remaining RUB12.5 billion available under the facility agreement. Subsequently, in September 2020, VEON repaid one of the facilities of RUB20 billion, originally maturing in June 2022, in full with no fees. The repaid facility cannot be re-borrowed. Contingent consideration In 2015, International Wireless Communications Pakistan Limited and Pakistan Mobile Communications Ltd (“PMCL”), each indirect subsidiaries of the Company, signed an agreement with Warid Telecom Pakistan LLC and Bank Alfalah Limited, to combine their operations in Pakistan. In July 2016, the transaction was closed and PMCL acquired 100% of the voting shares in Warid Telecom (Pvt) Limited (“Warid”) for a consideration of 15% of the shares in PMCL. As a result, VEON gained control over Warid. As part of the share purchase agreement, an earn-out payment was agreed in the event that a tower transaction is effected by PMCL within four years from the acquisition date. The earn-out would also apply if another telecommunications operator in Pakistan effects a tower transaction, provided the transaction meets certain parameters, in the same timeframe. The contingent consideration would be settled with a transfer of PMCL shares. As of June 2020, the probability of completion of a tower deal in Pakistan prior to the relevant deadline, upon which contingent consideration would be paid, became remote. As a result, the fair value of Contingent consideration was revised downwards to zero, with a corresponding gain of US$41 recognized in the consolidated income statement. Extension and extinguishment of Banglalink syndicated loan In April 2020, Banglalink Digital Communications Limited, a wholly-owned subsidiary, extended the maturity of its US$300 syndicated loan by an additional two years to 2022. Following this extension, VEON Digital Amsterdam B.V., the Company's wholly-owned subsidiary, acquired the loan from the original lenders, leading to extinguishment of this financial liability within VEON's consolidated financial statements. No material transactional costs were incurred. Drawdowns under the Revolving Credit Facility In March 2020, VEON Holdings B.V., the Company's wholly-owned subsidiary, executed two drawdowns under its existing revolving credit facility for an aggregate amount of US$600. Although these drawdowns are short-term in nature, VEON Holdings B.V. has an enforceable right to roll them over until final maturity date of the facility in February 2022. All outstanding drawdowns under this facility have been fully repaid during June 2020 (US$100) and July 2020 (US$500). In March 2021, VEON entered into a new multi-currency revolving credit facility agreement, refer to Note 22 for further details. Refinancing of RUB debt - AO "Alfa-Bank" In March 2020, VEON Holdings B.V. amended and restated the existing facility with AO "Alfa-Bank", increasing its size and utilization from RUB17.5 billion to RUB30 billion (US$165). Following this amendment and restatement, the final maturity of this facility has been set to March 2025. GTH bonds prepayment In February 2020, GTH Finance B.V., the Company’s subsidiary, repaid at par the US$500 6.25% bonds, originally maturing April, 2020. US$300 tap issuance of existing senior notes In January 2020, VEON Holdings B.V., issued US$300 in senior unsecured notes due 2025, which are consolidated and form a single series with the US$700 4.00% senior notes due in 2025 issued by VEON Holdings B.V. in October 2019. VEON used the net proceeds of the tap issuance to refinance certain existing outstanding debt. FINANCING ACTIVITIES IN 2019 VEON Holdings BV new notes In October 2019, VEON Holdings issued US$700 4.00% senior unsecured notes due 2025. The net proceeds of the notes issued have been used primarily to refinance drawings on the revolving credit facility used to fund the MTO for GTH. Pakistan Mobile Communications Limited new bilateral term facility In June 2019, PMCL entered into a bilateral secured PKR 14,369 million (approximately US$92) term facility with a local bank. The facility has a tenor of 7 years and bears interest at 6-month KIBOR increased by a margin of 0.75% per annum. The security is based on terms comparable with PMCL's existing debt. Pakistan Mobile Communications Limited new syndicated term facility and Islamic facility In June 2019, PMCL entered into a secured syndicated term facility and an Islamic financing facility for a joint amount of up to PKR 45,000 million (approximately US$287) and a period of up to 7 years. The cost of both facilities corresponds to 6-month KIBOR increased by a margin of 0.75% per annum. The security is based on terms comparable with PMCL's existing debt. Banglalink Digital Communications Limited new syndicated term facility agreement In April 2019, Banglalink entered into a new US$300 syndicated term facility agreement with several international banks. The facility is guaranteed by VEON Holdings for nil consideration. The facility has a tenor of 12 months with extension options for another 24 months upon agreement with the lenders, and was used to refinance the principal amount of Banglalink’s US$300 bond that matured in May 2019. FAIR VALUES As of December 31, 2020, the carrying amounts of all financial assets and liabilities are equal to or approximate their respective fair values as shown in the table at the beginning of this note, with the exception of: • 'Bank loans and bonds, including interest accrued', for which fair value is equal to US$8,031 (2019: US$7,887); and • 'Lease liabilities', for which fair value has not been determined. As of December 31, 2020 and December 31, 2019, all of the Group's financial instruments carried at fair value in the statement of financial position were measured based on Level 2 inputs, except for the Contingent consideration, for which fair value is classified as Level 3. All movements in Contingent consideration in the years ended December 31, 2020 and 2019 relate to changes in fair value, which are unrealized, and are recorded in “Other non-operating gain / (loss)” within the consolidated income statement. Fair values are estimated based on quoted market prices for our bonds, derived from market prices or by discounting contractual cash flows at the rate applicable for the instruments with similar maturity and risk profile. Observable inputs (Level 2) used in valuation techniques include interbank interest rates, bond yields, swap curves, basis swap spreads, foreign exchange rates and credit default spreads. On a quarterly basis, the Company reviews if there are any indicators for a possible transfer between fair value hierarchy levels. This depends on how the Company is able to obtain the underlying input parameters when assessing the fair valuations. During the years ended December 31, 2020 and 2019, there were no transfers between Level 1, Level 2 and Level 3 fair value measurements. HEDGE ACCOUNTING The following table sets out the Company’s hedging instruments designated as net investment hedges as of December 31: Hedging instruments * Designated rate Excluded component Hedged Currency Aggregated designated nominal value of hedged items, million 2020 2019 Foreign currency forward contracts Forward foreign currency basis spread PJSC VimpelCom RUB 26,758 ** 88,220 ** * Refer to the Debt and Derivatives section above in this Note for information regarding the carrying amounts of the hedging instruments. ** Hedging instruments have a weighted average term to maturity of 1 year as of December 31, 2020 (2019: 1 year ). There is an economic relationship between the hedged net investments and the hedging instruments due to the translation risk inherent in the hedged items that matches the foreign exchange risk of the hedging instruments. The hedge ratio for each of the above relationships was set at 1:1 as the underlying risk of the hedging instruments is identical to the hedged risk and the nominal value of hedging instruments has not exceeded the amounts of respective net investments. Hedge ineffectiveness might arise from: • 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. During the periods covered by these consolidated financial statements, the amount of ineffectiveness was immaterial. During 2020, the fair values of the Company’s derivatives designated as net investment hedges increased due to depreciation of the Russian ruble, resulting in a US$178gain recorded against the foreign currency translation reserve. This gain partially offset the translation loss related to our foreign operations described in Note 1 . Impact of hedge accounting on equity The below table sets out the reconciliation of each component of equity and the analysis of other comprehensive income (all of which are attributable to the equity owners of the parent): Foreign currency translation reserve Cost of hedging reserve ** As of January 1, 2019 (8,416) 5 Foreign currency revaluation of the foreign operations and other 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 Foreign currency revaluation of the foreign operations (615) — Effective portion of foreign currency revaluation of the hedging instruments * 178 — Change in fair value of foreign currency basis spreads — 7 Amortization of time-period related foreign currency basis spreads — (15) Other movements in foreign currency translation reserve (26) — As of December 31, 2020 (8,775) 1 * Amounts represent the changes in fair value of the hedging instruments and closely approximate the changes in value of the hedged items used to recognize hedge ineffectiveness. ** Movements in the cost of hedging reserve are included within "Other" in respective section of statement of other comprehensive income. ACCOUNTING POLICIES AND SOURCES OF ESTIMATION UNCERTAINTY Put options over non-controlling interest Put options over non-controlling interest of a subsidiary are accounted for as financial liabilities in the Company’s consolidated financial statements. The put-option redemption liability is measured at the discounted redemption amount. Interest over the put-option redemption liability will accrue in line with the effective interest rate method, until the options have been exercised or are expired. Derivative contracts VEON enters into derivative contracts, including swaps and forward contracts, to manage certain foreign currency and interest rate exposures. Any derivative instruments for which no hedge accounting is applied are recorded at fair value with any fair value changes recognized directly in profit or loss. Although some of the derivatives entered into by the Company have not been designated in hedge accounting relationships, they act as economic hedges and offset the underlying transactions when they occur. Hedges of a net investment The Company applies net investment hedge accounting to mitigate foreign currency translation risk related to the Company’s investments in foreign operations. The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognized in other comprehensive income within the “Foreign currency translation” line item. Where the hedging instrument’s foreign currency retranslation is greater (in absolute terms) than that of the hedged item, the excess amount is recorded in profit or loss as ineffectiveness. The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognized in other comprehensive income shall be reclassified from equity to profit or loss as a reclassification adjustment on the disposal or partial disposal of the foreign operation. Cash flows arising from derivative instruments for which hedge accounting is applied are reported in the statement of cash flows within the line item where the underlying cash flows of the hedged item are recorded. Fair value of financial instruments All financial assets and liabilities are measured at amortized cost, except those which are measured at fair value as presented within this Note. Where the fair value of financial assets and liabilities recorded in the statement of financial position cannot be derived from active markets, their fair value is determined using valuation techniques, including discounted cash flows models. The inputs to these models are taken from observable markets, but when this is not possible, a degree of judgment is required in establishing fair values. The judgments include considerations regarding inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Measurement of lease liabilities Lease liabilities are measured upon initial recognition at the present value of the future lease and related fixed services payments over the lease term, discounted with the country specific incremental borrowing rate as the rate implicit in the lease is generally not available. Subsequently lease liabilities are measured at amortized cost using the effective interest rate method. A significant portion of the lease contracts included within Company’s lease portfolio includes lease contracts which are extendable through mutual agreement between VEON and the lessor, or lease contracts which are cancellable by the Company immediately or on short notice. The Company includes these cancellable future lease periods within the assessed lease term, which increases the future lease payments used in determining the lease liability upon initial recognition. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS Cash and cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. Cash and cash equivalents are comprised of cash at bank and on hand and highly liquid investments that are readily convertible to known amounts of cash, are subject to only an insignificant risk of changes in value and have an original maturity of less than three months. Cash and cash equivalents consisted of the following items as of December 31: 2020 2019 Cash and cash equivalents at banks and on hand 694 932 Cash equivalents with original maturity of less than three months 900 318 Cash and cash equivalents 1,594 1,250 Less overdrafts (8) (46) Cash and cash equivalents, net of overdrafts, as presented in the consolidated statement of cash flows 1,586 1,204 Cash at bank earns interest at floating rates based on bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates. The imposition of currency exchange controls or other similar restrictions on currency convertibility in the countries in which VEON operates could limit VEON’s ability to convert local currencies or repatriate local cash in a timely manner or at all, as well as remit dividends from the respective countries. As of December 31, 2020, there were no restricted cash and cash equivalent balances (2019: nil). Cash balances include investments in money market funds of US$543 (2019: US$155), which are carried at fair value through profit or loss with gains presented within ‘Other non-operating gain / (loss)’ within the consolidated income statement. As of December 31, 2020, some bank accounts forming part of a cash pooling program and being an integral part of the Company’s cash management remained overdrawn by US$8 (2019: US$46). Even though the total balance of the cash pool remained positive, the Company has no legally enforceable right of set-off and therefore the overdrawn accounts are presented as debt and derivatives within the statement of financial position. At the same time, because the overdrawn accounts are an integral part of the Company’s cash management, they were included as cash and cash equivalents within the statement of cash flows. |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of risk management strategy related to hedge accounting [abstract] | |
FINANCIAL RISK MANAGEMENT | FINANCIAL RISK MANAGEMENT The Group’s principal financial liabilities consist of loans and borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Group’s operations. The Group has trade and other receivables, cash and short-term deposits that are derived directly from its operations. The Group is exposed to market risk, credit risk and liquidity risk. The Company’s Board of Directors manages these risks with support of the treasury function, who proposes the appropriate financial risk governance framework for the Group, identifies and measures financial risks and suggests mitigating actions. The Company’s Board of Directors, supported by its Finance Committee, approves the financial risk management framework and oversees its enforcement. INTEREST RATE RISK The Company is exposed to the risk of changes in market interest rates primarily due to the its long-term debt obligations. The Company manages its interest rate risk exposure through a portfolio of fixed and variable rate borrowings and hedging activities. As of December 31, 2020, approximately 79% of the Company’s borrowings are at a fixed rate of interest (2019: 91%). The Group is exposed to possible changes in interest rates on variable interest loans and borrowings, partially mitigated through related derivative financial instruments, cash and cash equivalents and current deposits. With all other variables held constant, the Company’s profit before tax is affected through changes in the floating rate of borrowings while the Company’s equity is affected through the impact of a parallel shift of the yield curve on the fair value of hedging derivatives. An increase or decrease of 100 basis points in interest rates would have an immaterial impact on the Company’s income statement and other comprehensive income. FOREIGN CURRENCY RISK The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the debt denominated in currencies other than the functional currency of the relevant entity, the Company’s operating activities (predominantly capital expenditures at subsidiary level denominated in a different currency from the subsidiary’s functional currency) and the Company’s net investments in foreign subsidiaries. The Company manages its foreign currency risk by selectively hedging committed exposures. The Company hedges part of its exposure to fluctuations on the translation into U.S. dollars of its foreign operations by holding the borrowings in foreign currencies or by foreign exchange swaps and forwards. During the periods covered by these financial statements, the Company used foreign exchange forwards to mitigate foreign currency translation risk related to the Company’s net investment in PJSC VimpelCom. Foreign currency sensitivity The following table demonstrates the sensitivity to a possible change in exchange rates against the US dollar with all other variables held constant. Additional sensitivity changes to the indicated currencies are expected to be approximately proportionate. The table shows the effect on the Company’s profit before tax (due to changes in the value of monetary assets and liabilities, including foreign currency derivatives) and equity (due to application of hedge accounting or existence of quasi equity loans). The Company’s exposure to foreign currency changes for all other currencies is not material. Effect on profit / (loss) before tax Effect on other comprehensive income Change in foreign exchange rate against US$ 10% depreciation 10% appreciation 10% depreciation 10% appreciation 2020 Russian Ruble 35 (39) 32 (39) Bangladeshi Taka (30) 33 — — Pakistani Rupee (4) 4 — — Georgian Lari (36) 40 — — Other currencies (net) 8 (9) 4 (4) 2019 Russian Ruble (9) 11 119 (145) Bangladeshi Taka (27) 30 — — Pakistani Rupee (10) 11 — — Georgian Lari (36) 39 — — Other currencies (net) (4) 5 — — CREDIT RISK The Company is exposed to credit risk from its operating activities (primarily from trade receivables), and from its treasury activities, including deposits with banks and financial institutions, derivative financial instruments and other financial instruments. See Note 16 for further information on restrictions on cash balances. Trade receivables consist of amounts due from customers for airtime usage and amounts due from dealers and customers for equipment sales. VEON’s credit risk arising from the services the Company provides to customers is mitigated to a large extent due to the majority of its active customers being subscribed to a prepaid service as of December 31, 2020 and 2019, and accordingly not giving rise to credit risk. For postpaid services, in certain circumstances, VEON requires deposits as collateral for airtime usage. Equipment sales are typically paid in advance of delivery, except for equipment sold to dealers on credit terms. VEON’s credit risk arising from its trade receivables from dealers is mitigated due to the risk being spread across a large number of dealers. Management periodically reviews the history of payments and credit worthiness of the dealers. The Company also has receivables from other local and international operators from interconnect and roaming services provided to their customers, as well as receivables from customers using fixed-line services, such as business services, wholesale services and services to residents. Receivables from other operators for roaming services are settled through clearing houses, which helps to mitigate credit risk in this regard. VEON holds available cash in bank accounts, as well as other financial assets with financial institutions in countries where it operates. To manage credit risk associated with such asset holdings, VEON allocates its available cash to a variety of local banks and local affiliates of international banks within the limits set forth by its treasury policy. Management periodically reviews the creditworthiness of the banks with which it holds assets. In respect of financial instruments used by the Company’s treasury function, the aggregate credit risk the Group may have with one counterparty is managed by reference to, amongst others, the long-term credit ratings assigned for that counterparty by Moody’s, Fitch Ratings and Standard & Poor’s and CDS spreads of that counterparty. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through potential counterparty’s failure. Value Added Tax ( “VAT” ) is recoverable from tax authorities by offsetting it against VAT payable to the tax authorities on VEON’s revenue or direct cash receipts from the tax authorities. Management periodically reviews the recoverability of the balance of input value added tax and believes it is fully recoverable. VEON issues advances to a variety of its vendors of property and equipment for its network development. The contractual arrangements with the most significant vendors provide for equipment financing in respect of certain deliveries of equipment. VEON periodically reviews the financial position of vendors and their compliance with the contract terms. The Company’s maximum exposure to credit risk for the components of the statement of financial position at December 31, 2020 and 2019 is the carrying amount as illustrated in Note 5 , Note 15 , Note 16 and within this Note 17 . LIQUIDITY RISK The Company monitors its risk to a shortage of funds using a recurring liquidity planning tool. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bonds, bank overdrafts, bank loans and lease contracts. The Company’s policy is to create a balanced debt maturity profile. As of December 31, 2020, 5% of the Company’s debt (2019: 21%) will mature in less than one year based on the carrying value of bank loans, bonds and other borrowings reflected in the financial statements. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low based on liquidity in the markets the Company has access to, and recent history of refinancing. The Company believes that access to sources of funding is sufficiently available and the Company’s policy is to diversify the funding sources where possible. Available facilities The Company had the following available facilities as of December 31: Amounts in millions of transactional currency US$ equivalent amounts Final availability period Facility amount Utilized Available Facility amount Utilized Available 2020 VEON Holdings B.V. – Revolving Credit Facility * Feb 2022 US$1,585 * — US$1,585 1,585 — 1,585 PMCL - Term Facility Sep 2021 PKR 14,369 PKR 9,999 PKR 4,370 90 62 28 Kartel - Term Facility Nov 2023 KZT 10,000 KZT 5,000 KZT 5,000 24 12 12 * Facility amount of US$1,586 is available until February 2021. Subsequently, a reduced facility amount of US$1,382 is available until February 2022. In March 2021, VEON entered into a new multi-currency revolving credit facility agreement, refer to Note 22 for further details. Amounts in millions of transactional currency US$ 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 * Facility amount of US$1,688 is available until February 2020. Subsequently a reduced facility amount of US$1,586 is available until February 2021. In March 2021, VEON entered into a new multi-currency revolving credit facility agreement, refer to Note 22 for further details. Maturity profile The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments. Payments related to variable interest rate financial liabilities and derivatives are included based on the interest rates and foreign currency exchange rates applicable as of December 31, 2020 and 2019, respectively. The total amounts in the table differ from the carrying amounts as stated in Note 15 as the below table includes both undiscounted principal amounts and interest while the carrying amounts are measured using the effective interest rate method. Less than 1 year 1-3 years 3-5 years More than 5 years Total As of December 31, 2020 Bank loans and bonds 842 3,803 3,123 1,408 9,176 Lease liabilities 525 896 639 239 2,299 Derivative financial liabilities Gross cash inflows (228) — — — (228) Gross cash outflows 237 — — — 237 Trade and other payables 1,977 — — — 1,977 Other financial liabilities — 60 — — 60 Warid non-controlling interest put option liability 273 — — — 273 Total financial liabilities 3,626 4,759 3,762 1,647 13,794 Related derivatives financial assets Gross cash inflows 152 — — — 152 Gross cash outflows (149) — — — (149) Related derivative financial assets 3 — — — 3 Total financial liabilities, net of derivative assets 3,629 4,759 3,762 1,647 13,797 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 CAPITAL MANAGEMENT The primary objective of the Company’s capital management is to ensure that it maintains healthy capital ratios, so as to secure access to debt and capital markets at all times and maximize shareholder value. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. Current credit ratings of the Company support its capital structure objectives. Since 2019, VEON’s dividend policy targets paying at least 50% of prior year Equity Free Cash Flow after licenses. There were no changes made in the Company’s objectives, policies or processes for managing capital during 2020. The Net Debt to Adjusted EBITDA ratio is an important measure used by the Company to assess its capital structure. Net Debt represents the principal amount of interest-bearing debt less cash and cash equivalents and bank deposits. Adjusted EBITDA is defined as last twelve months earnings before interest, tax, depreciation, amortization and impairment, loss on disposals of non-current assets, other non-operating losses and share of profit / (loss) of joint ventures. For reconciliation of ‘Profit / (loss) before tax from continuing operations’ to ‘Adjusted EBITDA,’ refer to Note 2 . VEON's internal target is to keep Net Debt to Adjusted EBITDA at around 2.0x on the basis of the so called "GAAP freeze" principle, i.e. under the IAS 17 framework, which is equivalent to 2.4x on the post-IFRS 16 basis. Further, this ratio is included as a financial covenant in the credit facilities of the Company. For most of our credit facilities the Net Debt to Adjusted EBITDA ratio is calculated at consolidated level of VEON Ltd. and is “pro-forma” adjusted for acquisitions and divestments of any business bought or sold during the relevant period. Under these credit facilities, the Company is required to maintain the Net Debt to Adjusted EBITDA ratio below 3.5x (on the basis of the so called "GAAP freeze" principle). The Company has not breached any financial covenants during the period covered by these financial statements. |
ISSUED CAPITAL AND RESERVES
ISSUED CAPITAL AND RESERVES | 12 Months Ended |
Dec. 31, 2020 | |
ISSUED CAPITAL AND RESERVES | |
ISSUED CAPITAL AND RESERVES | ISSUED CAPITAL AND RESERVES The following table details the common shares of the Company as of December 31: 2020 2019 Authorized common shares (nominal value of US$0.001 per share) 1,849,190,667 1,849,190,667 Issued shares, including 7,603,731 shares held by a subsidiary of the Company 1,756,731,135 1,756,731,135 The holders of common shares are, subject to our by-laws and Bermuda law, generally entitled to enjoy all the rights attaching to common shares. All issued shares are fully paid-up. As of December 31, 2020, the Company’s largest shareholders and remaining free float are as follows: 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 % * 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. Nature and purpose of reserves Other capital reserves are mainly used to recognize the results of transactions that do not result in a change of control with non-controlling interest (see Note 1 3 ). The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of foreign subsidiaries, net of any related hedging activities (see Note 15 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per common share for all periods presented has been determined by dividing profit available to common shareholders by the weighted average number of common shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share for continuing operations, for the years ended December 31: Continuing operations 2020 2019 2018 (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 (349) 621 (397) 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 ($0.20) $0.36 ($0.23) Diluted (loss) / earnings per share ($0.20) $0.36 ($0.23) The following table sets forth the computation of basic and diluted earnings per share for discontinued operations, for the years ended December 31: Discontinued operations 2020 2019 2018 (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 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 $0.00 $0.56 Diluted (loss) / earnings per share $0.00 $0.00 $0.56 |
DIVIDENDS PAID AND PROPOSED
DIVIDENDS PAID AND PROPOSED | 12 Months Ended |
Dec. 31, 2020 | |
Dividends Paid And Proposed | |
DIVIDENDS PAID AND PROPOSED | DIVIDENDS PAID AND PROPOSED Pursuant to Bermuda law, VEON is restricted from declaring or paying a dividend if there are reasonable grounds for believing that (a) VEON is, or would after the payment be, unable to pay its liabilities as they become due, or (b) the realizable value of VEON assets would, as a result of the dividend, be less than the aggregate of VEON liabilities. There were no dividends declared by VEON in respect of the year 2020. The following table provides an overview of dividends announced by VEON in respect of the year 2019: Dividends declared Dividends paid Dividends, US$ cents per share Final for 2019 February 2020 March 2020 15 Interim for 2019 August 2019 August 2019 13 The Company makes appropriate tax withholdings of up to 15% when the dividends are being paid to the Company’s share depository, The Bank of New York Mellon. For ordinary shareholders at Euronext Amsterdam, dividends are paid in euro. DIVIDENDS DECLARED TO NON-CONTROLLING INTERESTS During 2020, 2019 and 2018, certain subsidiaries of the Company declared dividends, of which a portion was paid or payable to non-controlling interests as shown in the table below: Name of subsidiary 2020 2019 2018 Omnium Telecom Algeria S.p.A 45 69 76 VIP Kazakhstan Holding AG 24 24 — TNS Plus LLP 16 12 13 Other 2 3 4 Total dividends declared to non-controlling interests 87 108 93 In 2020, PMCL, a subsidiary of the Company, declared dividends to its shareholders, of which US$25 (2019: US$24, 2018: US$11) was declared to non-controlling shareholders of PMCL. Dividends declared to non-controlling interests of PMCL reduces the principal amount of the put-option liability over non-controlling interest on the date of declaration. As of December 31, 2020, there is no remaining amount payable to non-controlling interests (2019: none, 2018: US$7). |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTIES | RELATED PARTIES As of December 31, 2020, the Company has no ultimate controlling shareholder. See also Note 18 for details regarding ownership structure. COMPENSATION TO DIRECTORS AND SENIOR MANAGERS OF THE COMPANY The following table sets forth the total compensation paid to our directors and senior managers, who are considered to be key management of the company: 2020 2019 2018 Short-term employee benefits 35 48 33 Long-term employee benefits 1 — — Share-based payments — 3 — Termination benefits 4 — 2 Total compensation to directors and senior management * 40 51 35 * The number of directors and senior managers vary from year to year. Total compensation paid to directors and senior management approximates the amount charged in the consolidated income statement for that year. Under the Company’s bye-laws, the Board of Directors of the Company established a compensation and talent committee, which has the overall responsibility for approving and evaluating the compensation and benefit plans, policies and programs of the Company’s directors, officers and employees and for supervising the administration of the Company’s equity incentive plans and other compensation and incentive programs. Compensation of Key Senior Managers The following table sets forth the total remuneration expense to the key senior managers in 2020 and 2019 (gross amounts in whole euro and whole US$ equivalents). For further details on compensation and changes to key senior managers, please refer to the Explanatory notes below. In whole euros Kaan Terzioglu Sergi Herrero Ursula Burns Serkan Okandan Trond Westlie Murat Kirkgoz Kjell Johnsen Scott Dresser Alex Kazbegi Joop Brakenhoff Group Co-CEO Group Co-CEO Group CEO Group CFO Group CFO Deputy Group CFO Group COO Group General Counsel Chief Strategy Officer Chief Internal Audit & Compliance Officer 2020 Short-term employee benefits Base salary 1,323,000 1,181,368 1,162,750 864,000 16,810 211,600 — 1,300,000 553,500 224,100 Annual incentive 930,418 769,643 540,984 525,730 — 80,302 — 2,300,000 338,378 147,813 Other 439,657 2,158,022 554,328 297,341 212,631 40,360 299,333 24,100 104,124 39,908 Long-term employee benefits 76,366 706,925 — — — — — — — — Share-based payments 88,056 58,707 111,403 76,316 (217,080) (7,954) (217,080) (65,526) — 8,775 Termination benefits — — — — — — — — — — Total remuneration expense * 2,857,497 4,874,665 2,369,465 1,763,387 12,361 324,308 82,253 3,558,574 996,002 420,596 2019 Short-term employee benefits Base salary 220,500 342,036 5,500,000 — 1,500,000 264,500 1,250,000 1,300,000 394,795 — Annual incentive 472,151 514,460 10,461,000 — 1,455,216 211,713 4,184,355 2,258,882 700,000 — Other 105,999 1,560,229 1,146,503 — 24,100 35,750 46,857 29,100 677,662 — Long-term employee benefits — — — — — — — — — — Share-based payments — — — — 64,842 8,242 (828,047) (697,504) — — Termination benefits — — — — — — — — — — Total remuneration expense 798,650 2,416,725 17,107,503 — 3,044,158 520,205 4,653,165 2,890,478 1,772,457 — * Total remuneration expense for 2020 excludes accrued payroll taxes of EUR9 million (US$10) recorded in ‘Selling, general and administrative expenses’ incurred by the Company pertaining to payments made to Ursula Burns, Kjell Johnson. In whole US dollars Kaan Terzioglu Sergi Herrero Ursula Burns Serkan Okandan Trond Westlie Murat Kirkgoz Kjell Johnsen Scott Dresser Alex Kazbegi Joop Brakenhoff Group Co-CEO Group Co-CEO Group CEO Group CFO Group CFO Deputy Group CFO Group COO Group General Counsel Chief Strategy Officer Chief Internal Audit & Compliance Officer 2020 Short-term employee benefits Base salary 1,508,380 1,346,902 1,325,676 985,064 19,165 241,250 — 1,482,157 631,057 255,501 Annual incentive 1,060,789 877,486 616,787 599,396 — 91,554 — 2,622,278 385,792 168,525 Other 501,262 2,460,406 632,001 339,005 242,425 46,015 341,276 27,477 118,714 45,500 Long-term employee benefits 87,066 805,980 — — — — — — — — Share-based payments 100,394 66,933 127,013 87,009 (247,497) (9,069) (247,497) (74,708) — 10,005 Termination benefits — — — — — — — — — — Total remuneration expense * 3,257,891 5,557,707 2,701,477 2,010,474 14,093 369,750 93,779 4,057,204 1,135,563 479,531 2019 Short-term employee benefits Base salary 246,782 382,805 6,155,568 — 1,678,791 296,027 1,398,993 1,454,952 441,852 — Annual incentive 528,429 575,781 11,707,890 — 1,628,669 236,948 4,683,106 2,528,128 783,436 — Other 118,633 1,746,199 1,283,159 — 26,973 40,011 52,442 32,569 758,435 — Long-term employee benefits — — — — — — — — — — Share-based payments — — — — 72,571 9,224 (926,745) (780,642) — — Termination benefits — — — — — — — — — — Total remuneration expense 893,844 2,704,785 19,146,617 — 3,407,004 582,210 5,207,796 3,235,007 1,983,723 — * Total remuneration expense for 2020 excludes accrued payroll taxes of EUR9 million (US$10) recorded in ‘Selling, general and administrative expenses’ incurred by the Company pertaining to payments made to Ursula Burns, Kjell Johnson. Explanatory notes Base salary includes any holiday allowances pursuant to the terms of an individual’s employment agreement. Annual incentive expense includes amounts accrued under the short-term incentive in respect of performance during the current year, as well as any special recognition bonus. Other short-term employee benefits include certain allowances (for example, pension allowance or reimbursement of certain losses etc.) and support (for example, relocation support). Share-based payments expense relates to amounts accrued under the value growth cash-based multi-year incentive plans, see below for further details. Changes in Key Senior Managers Ursula Burns stepped down as Group CEO with effect from March 1, 2020. Sergi Herrero and Kaan Terzioğlu were appointed as Co-CEOs with effective from March 1, 2020, having previously served as Joint COOs since September 2, 2019 and November 1, 2019, respectively. On May 1, 2020, Serkan Okandan joined VEON as Group CFO. Trond Westlie stepped down from the role of Group CFO on September 30, 2019. Murat Kirkgoz served as Deputy Group CFO from August 1, 2019 to April 30, 2020. Kjell Johnsen stepped down from the role of Group COO on November 1, 2019. The Key Senior Managers of VEON include Group (co-)CEOs, Group CFO, Group COO and Group General Counsel. In addition to the Key Senior Managers disclosed, VEON has also voluntarily disclosed other senior managers. Alex Kazbegi was appointed Group Chief Strategy Officer effective from February 18, 2019, and Joop Brakenhoff was appointed Group Chief Internal Audit & Compliance Officer, effective July 1, 2020. Compensation of Board of Directors The following table sets forth the total remuneration expense to the members of the Board of Directors members in 2020 and 2019 (gross amounts in whole euro and whole US dollar equivalents). For details on changes in Board of Directors, please refer to explanations below. Retainer Committees Other compensation Total In whole euros 2020 2019 2020 2019 2020 2019 2020 2019 Hans Holger Albrecht 204,167 — 72,917 — — — 277,084 — Guillaume Bacuvier 105,114 250,000 23,125 53,909 — — 128,239 303,909 Osama Bedier 308,333 250,000 68,750 25,000 — — 377,083 275,000 Ursula Burns 323,864 — — 5,952 — — 323,864 5,952 Mariano De Beer 204,167 — 87,500 — — — 291,667 — Peter Derby 204,167 — 87,500 — — — 291,667 — Mikhail Fridman 60,417 40,000 — — — — 60,417 40,000 Gennady Gazin 629,167 250,000 33,333 80,000 — — 662,500 330,000 Amos Genish 204,167 — 87,500 — — — 291,667 — Yaroslav Glazunov 13,350 — — — — — 13,350 — Andrei Gusev 60,417 40,000 — — 500,000 750,000 560,417 790,000 Gunnar Holt 308,333 250,000 118,750 69,643 — — 427,083 319,643 Sir Julian Horn-Smith 105,114 250,000 10,511 25,000 — — 115,625 275,000 Robert Jan van de Kraats 308,333 250,000 85,417 30,000 — — 393,750 280,000 Guy Laurence 104,167 250,000 12,500 30,000 — — 116,667 280,000 Alexander Pertsovsky 47,917 40,000 — — — — 47,917 40,000 Steve Pusey 204,167 — 58,333 — — — 262,500 — Kaan Terzioglu — 92,708 — 9,063 — — — 101,771 Total compensation 3,395,361 1,962,708 746,136 328,567 500,000 750,000 4,641,497 3,041,275 Retainer Committees Other compensation Total In whole US dollars 2020 2019 2020 2019 2020 2019 2020 2019 Hans Holger Albrecht 232,775 — 83,134 — — — 315,909 — Guillaume Bacuvier 119,843 279,799 26,365 60,335 — — 146,208 340,134 Osama Bedier 351,537 279,799 78,383 27,980 — — 429,920 307,779 Ursula Burns 369,244 — — 6,661 — — 369,244 6,661 Mariano De Beer 232,775 — 99,761 — — — 332,536 — Peter Derby 232,775 — 99,761 — — — 332,536 — Mikhail Fridman 68,883 44,768 — — — — 68,883 44,768 Gennady Gazin 717,326 279,799 38,004 89,536 — — 755,330 369,335 Amos Genish 232,775 — 99,761 — — — 332,536 — Yaroslav Glazunov 15,221 — — — — — 15,221 — Andrei Gusev 68,883 44,768 — — 570,060 839,396 638,943 884,164 Gunnar Holt 351,537 279,799 135,389 77,944 — — 486,926 357,743 Sir Julian Horn-Smith 119,843 279,799 11,984 27,980 — — 131,827 307,779 Robert Jan van de Kraats 351,537 279,799 97,386 33,576 — — 448,923 313,375 Guy Laurence 118,763 279,799 14,252 33,576 — — 133,015 313,375 Alexander Pertsovsky 54,631 44,768 — — — — 54,631 44,768 Steve Pusey 232,775 — 66,507 — — — 299,282 — Kaan Terzioglu — 103,758 — 10,143 — — — 113,901 Total compensation 3,871,123 2,196,655 850,687 367,731 570,060 839,396 5,291,870 3,403,782 Changes in Board of Directors Ursula Burns was appointed Group CEO and Chairman of the VEON Ltd. board of directors on December 12, 2018. Accordingly, her total compensation for 2019 and until March 1, 2020, has been included in the section “Compensation of Key Senior Managers” above, except for payments received in respect of her role on Board Committees. Ursula Burns stepped down as Group CEO on March 1, 2020, and later stepped down as Chairman on June 1, 2020. On June 1, 2020 VEON announced the results of the elections conducted at its Annual General Meeting of Shareholders. Shareholders elected five new members to the Company’s Board of Directors, Hans Holger Albrecht, Mariano De Beer, Peter Derby, Amos Genish and Stephen Pusey, as well as seven previously serving directors: Osama Bedier, Mikhail M. Fridman, Gennady Gazin, Andrei Gusev, Gunnar Holt, Robert Jan van de Kraats and Alexander Pertsovsky. Following the election of the directors, Gennady Gazin was appointed as Chairman of VEON’s Board of Directors, effective June 1, 2020. Value growth cash-based multi-year incentive plans To stimulate and reward leadership efforts that result in sustainable success, value growth cash-based multi-year incentive plan ( “Incentive Plans ”) were designed for members of our recognized leadership community. The participants in the Incentive Plans may receive cash payouts after the end of each relevant award performance period. Vesting is based on the attainment of certain Key Performance Indicators (“ KPIs ”), such as absolute share price, total return per share or value growth of certain VEON businesses. Options may be exercised by the participant at any time during a defined exercise period, subject to the Company’s insider trading policy. Short Term Incentive Scheme The Company’s Short Term Incentive ( “STI” ) Scheme provides cash pay-outs to participating employees based on the achievement of established KPIs over the period of one calendar year. KPIs are set every year at the beginning of the year and evaluated in the first quarter of the next year. The KPIs are partially based on the financial and operational results (such as total operating revenue, EBITDA and equity free cash flow) of the Company, or the affiliated entity employing the employee, and partially based on individual targets that are agreed upon with the participant at the start of the performance period based on his or her specific role and activities. The weight of each KPI is decided on an individual basis. |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
EVENTS AFTER THE REPORTING PERIOD | EVENTS AFTER THE REPORTING PERIOD VEON enters into a US$1,250 multi-currency revolving credit facility agreement In March 2021, VEON successfully entered into a new multi-currency revolving credit facility agreement (the “RCF” ) of US$1,250. The RCF replaces the revolving credit facility signed in February 2017, which is now cancelled. The RCF has an initial tenor of three years, with the Company having the right to request two one six . VEON subsidiary Banglalink successfully acquires 9.4MHz in spectrum auction In March 2021, Banglalink, the Company's wholly-owned subsidiary in Bangladesh, acquired 4.4MHz spectrum in the 1800MHz band and 5MHz spectrum in 2100MHz band following successful bids at an auction held by the BTRC. The newly acquired spectrum will see Banglalink increase its total spectrum holding from 30.6MHz to 40MHz. Banglalink will invest approximately BDT 10 billion (US$115) to purchase the spectrum. |
BASIS OF PREPARATION OF THE CON
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2020 | |
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS | |
BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS | BASIS OF PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS BASIS OF PREPARATION These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ( “IFRS” ) as issued by the International Accounting Standards Board, effective at the time of preparing the consolidated financial statements and applied by VEON. The consolidated income statement has been presented based on the nature of the expense, other than ‘Selling, general and administrative expenses’, which has been presented based on the function of the expense. The consolidated financial statements have been prepared on a historical cost basis, unless otherwise disclosed. BASIS OF CONSOLIDATION The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Subsidiaries are all entities (including structured entities) over which the Company has control. Please refer to Note 1 3 for a list of significant subsidiaries. Intercompany transactions, balances and unrealized gains or losses on transactions between Group companies are eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies. When the Group ceases to consolidate a subsidiary due to loss of control, the related subsidiary’s assets (including goodwill), liabilities, non-controlling interest and other components of equity are de-recognized. This may mean that amounts previously recognized in other comprehensive income are reclassified to profit or loss. Any consideration received is recognized at fair value, and any investment retained is re-measured to its fair value, and this fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest. Any resultant gain or loss is recognized in the income statement. FOREIGN CURRENCY TRANSLATION The consolidated financial statements of the Group are presented in U.S. dollars. Each entity in the Group determines its own functional currency and amounts included in the financial statements of each entity are measured using that functional currency. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies That Relate To The Consolidated Financial Statements As A Whole | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS The preparation of these consolidated financial statements has required management to apply accounting policies and methodologies based on complex and subjective judgments, as well as estimates based on past experience and assumptions determined to be reasonable and realistic based on the related circumstances. The use of these judgments, estimates and assumptions affects the amounts reported in these consolidated financial statements. The final amounts for items for which estimates and assumptions were made in the consolidated financial statements may differ from those reported in these statements due to the uncertainties that characterize the assumptions and conditions on which the estimates are based. The sources of uncertainty identified by the Group are described together with the applicable Note, as follows: Significant accounting judgment / source of estimation uncertainty Described in Revenue recognition Note 3 Deferred tax assets and uncertain tax positions Note 8 Provisions and contingent liabilities Note 7 Impairment of non-current assets Note 10 Control over subsidiaries Note 13 Depreciation and amortization of non-current assets Note 11 and Note 12 Fair value of financial instruments Note 15 Measurement of lease liabilities Note 15 NEW STANDARDS AND INTERPRETATIONS Not yet adopted by the Group Certain new accounting standards and interpretations have been published that are not mandatory for December 31, 2020 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on VEON financial statements in current or future reporting periods or on foreseeable future transactions. Adopted in 2020 A number of new and amended standards became effective as of January 1, 2020, which did not have a material impact on VEON financial statements. The Group has not early adopted any other standards, interpretations or amendments that have been issued but have not yet become effective. In May 2020, the IASB issued an amendment to IFRS 16 'Leases', providing an option to apply a practical expedient in respect of accounting for certain rent concessions arising as a direct consequence of COVID-19, such as rent holidays and temporary rent reductions. Under this amendment, which became effective in 2020, lessees are exempted from having to consider whether these rent concessions are lease modifications. The Group has chosen not to apply the practical expedient available, and will therefore account for any rent concessions as lease modifications. |
CONDENSED SEPARATE FINANCIAL IN
CONDENSED SEPARATE FINANCIAL INFORMATION OF VEON | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED SEPARATE FINANCIAL INFORMATION OF VEON LTD | CONDENSED SEPARATE FINANCIAL INFORMATION OF VEON LTD Certain of the consolidated entities by VEON Ltd. are restricted from remitting funds in the form of cash dividends or loans by a variety of regulations, contractual or local statutory requirements. Regulation S-X requires that condensed financial information of the registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries means that amount of the registrant’s proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The Company performed a test on the restricted net assets of consolidated subsidiaries and concluded the restricted net assets exceed 25% of the consolidated net assets of the Company as of December 31, 2020. As of December 31, 2020, VEON Ltd. had restricted net assets of 390%, compared to 58% in 2019, of total net assets. The Company is subject to legal restrictions to distribute accumulated profits from Algeria by virtue of local shareholding agreement (i.e. it is allowed only to distribute 42.5% of current year profit), and the rest is restricted. The relative increase in restriction was primarily due to the impairment of our Russia and Kyrgyzstan CGU’s (refer to Note 10 ), as well as the devaluation of exchange rates in the countries in which VEON operates (refer to Note 1 ), thus lowering the book value of consolidated net assets of the Company relative to an unchanged share of the restricted assets. Accordingly, separate condensed financial statements of VEON Ltd. have been prepared, in accordance with Rule 5-04 and Rule 12-04 of SEC Regulation S-X. The restricted net assets in Algeria have no implications on the Company’s ability to pay dividends. The separate condensed financial statements should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes thereto. The separate condensed financial statements have been prepared in accordance with Title 9 of Book 2 of the Dutch Civil Code. In accordance with the provisions of Article 362, paragraph 8, Title 9 of Book 2 of the Dutch Civil Code the accounting policies used are the same as those explained in the Notes to the Consolidated Financial Statements, prepared under IFRS, except for the accounting policy disclosed below. The ‘Equity’ and ‘Profit / (loss) for the year’ shown in the separate condensed financial statements below are equal to the ‘Equity’ and ‘Profit / (loss) for the year’ which are attributable to the owners of the parent within the Company’s consolidated financial statements. Subsidiaries Subsidiaries are all entities (including intermediate subsidiaries) over which the Company has control. The Company controls an entity when it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. Subsidiaries are recognized from the date on which control is transferred to the Company or its intermediate holding entities. They are de-recognized from the date that control ceases. Investments in subsidiaries are measured at net asset value. Net asset value is based on the measurement of assets, provisions and liabilities and determination of profit based on the principles applied in the consolidated financial statements. If the valuation of a subsidiary based on the net asset value is negative, it will be stated at nil. If and insofar as the Company can be held fully or partially liable for the debts of the subsidiary or has the firm intention of enabling the participation to settle its debts, a provision is recognized for this. Newly acquired subsidiaries are initially recognized on the basis of the fair value of their identifiable net assets at the acquisition date. For subsequent valuations, the principles that apply for these financial statements are used. The amount by which the carrying amount of the subsidiary has changed since the previous financial statements as a result of the net result achieved by the subsidiary is recognized in the income statement. Condensed statement of financial position: As of December 31 2020 2019 2018 Non-current assets Intangible assets 8 10 9 Tangible fixed assets 8 15 4 Financial fixed assets 138 1,152 3,590 Total non-current assets 154 1,177 3,603 Total current assets 320 393 435 Total assets 474 1,570 4,038 Equity 163 1,226 3,670 Total liabilities 311 344 368 Total equity and liabilities 474 1,570 4,038 Condensed income statement: for the years ended December 31 2020 2019 2018 Selling, general and administrative expenses (101) (160) (240) Other operating gains — 350 — Recharged expenses to group companies 3 21 47 Operating (loss) / profit (98) 211 (193) Finance income and (costs) (2) 6 4 Share in result of subsidiaries after tax (249) 404 771 Income tax — — (1) Total non-operating income and expenses (251) 410 774 Profit / (loss) for the year (349) 621 581 Condensed statements of comprehensive income: for the years ended December 31 2020 2019 2018 Total comprehensive (loss) / profit for the year, net of tax (800) 733 (138) Condensed statement of cash flows: for the years ended December 31 2020 2019 2018 Net cash flows from operating activities (13) (213) 23 Investing activities Receipt of dividends — — 571 Receipt of capital surplus from a subsidiary 317 650 — Other cash flows from investing activities — 101 (76) Net cash flows used in investing activities 317 751 495 Financing activities Proceeds from borrowings net of fees paid — — — Repayment of borrowings — — — Dividends paid to equity owners of the parent (260) (522) (505) Share capital issued and paid — — — Net cash flows generated from/(used in) financing activities (260) (522) (505) Net increase (decrease) in cash and cash equivalents 44 16 13 Net foreign exchange difference — — 1 Cash and cash equivalents at beginning of period 35 19 5 Cash and cash equivalents at end of period 79 35 19 As of December 31, 2020, 2019 and 2018 there were no material contingencies, significant provisions of long-term obligations, mandatory dividend or redemption requirements of redeemable stocks or guarantees of the Company, except for those which have been separately disclosed in the consolidated financial statements, if any. Amsterdam, March 15, 2021 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies That Relate To The Consolidated Financial Statements As A Whole | |
Revenue from contracts with customers | Revenue from contracts with customers Service revenue Service revenue includes revenue from airtime charges from contract and prepaid customers, monthly contract fees, interconnect revenue, roaming charges and charges for value added services ( “VAS” ). VAS includes short messages, multimedia messages, caller number identification, call waiting, data transmission, mobile internet, downloadable content, mobile finance services, machine-to-machine and other services. The content revenue relating to VAS is presented net of related costs when the VEON’s performance obligation is to arrange the provision of the services by another party (VEON acts as an agent), and gross when VEON is primarily responsible for fulfilling the obligation to provide such services to the customer. Revenue for services with a fixed term, including fixed-term tariff plans and monthly subscriptions, is recognized on a straight-line basis over time. For pay-as-you-use plans, in which the customer is charged based on actual usage, revenue is recognized on a usage basis. Some tariff plans allow customers to rollover unused services to the following period. For such tariff plans, revenue is generally recognized on a usage basis. For contracts which include multiple service components (such as voice, text, data), revenue is allocated based on stand-alone selling price of each performance obligation. The stand-alone selling price for these services is usually determined with reference to the price charged per service under a pay-as-you-use plan to similar customers. Upfront fees, including activation or connection fees, are recognized on a straight-line basis over the contract term. For contracts with an indefinite term (for example, prepaid contracts), revenue from upfront fees is recognized over the average customer life. Revenue from other operators, including interconnect and roaming charges, is recognized based on the price specified in the contract, net of any estimated retrospective volume discounts. Accumulated experience is used to estimate and provide for the discounts. All service revenue is recognized over time. Sale of equipment and accessories Equipment and accessories are usually sold to customers on a stand-alone basis, or together with service bundles. Where sold together with service bundles, revenue is allocated pro-rata, based on the stand-alone selling price of the equipment and the service bundle. The vast majority of equipment and accessories sales pertain to mobile handsets and accessories. Revenue for mobile handsets and accessories is recognized when the equipment is sold to a customer, or, if sold via an intermediary, when the intermediary has taken control of the device and the intermediary has no remaining right of return. Revenue for fixed-line equipment is not recognized until installation and testing of such equipment are completed and the equipment is accepted by the customer. |
Contract balances | Contract balances Receivables and contracts assets mostly relate to amounts due from other operators and postpaid customers. Contract assets, often referred to as ‘Accrued receivables,’ are transferred to Receivables when the rights become unconditional, which usually occurs when the Group issues an invoice to the customer. Contract liabilities, often referred to as ‘Deferred revenue’, relate primarily to non-refundable cash received from prepaid customers for fixed-term tariff plans or pay-as-you-use tariff plans. Contract liabilities are presented as ‘Long-term deferred revenue’, ‘Short-term deferred revenue’ and ‘Customer advances’ in Note 6 |
Customer acquisition costs | Customer acquisition costs Certain incremental costs incurred in acquiring a contract with a customer ( “customer acquisition costs” ), are deferred in the consolidated statement of financial position, within 'Other assets' (see Note 6 ). Such costs generally relate to commissions paid to third-party dealers and are amortized on a straight-line basis over the average customer life, within ‘Selling, general and administrative expenses’. Customer associated costs relate primarily to commissions paid to third-party dealers and marketing expenses. Certain dealer commissions are initially capitalized in the consolidated statement of financial position and subsequently amortized within "Customer associated costs", see Note 3 |
Trade and other receivables | Trade and other receivables Trade and other receivables are measured at amortized cost and include invoiced amounts less expected credit losses. |
Expected credit losses | Expected credit losses The expected credit loss allowance ( “ECL” ) is recognized for all receivables measured at amortized cost at each reporting date. This means that an ECL is recognized for all receivables even though there may not be objective evidence that the trade receivable has been impaired. |
Provisions | Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are discounted using a current pre-tax rate if the time value of money is significant. Contingent liabilities are possible obligations arising from past events, whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. |
Contingent liabilities | SOURCE OF ESTIMATION UNCERTAINTY The Group is involved in various legal proceedings, disputes and claims, including regulatory discussions related to the Group’s business, licenses, tax positions and investments, and the outcomes of these are subject to significant uncertainty. Management evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. Unanticipated events or changes in these factors may require the Group to increase or decrease the amount recorded for a matter that has not been previously recorded because it was not considered probable. |
Income taxes | Income taxes Income tax expense represents the aggregate amount determined on the profit for the period based on current tax and deferred tax. In cases where the tax relates to items that are charged to other comprehensive income or directly to equity, the tax is also charged respectively to other comprehensive income or directly to equity. |
Uncertain tax positions | Uncertain tax positions The Group’s policy is to comply with the applicable tax regulations in the jurisdictions in which its operations are subject to income taxes. The Group’s estimates of current income tax expense and liabilities are calculated assuming that all tax computations filed by the Company’s subsidiaries will be subject to a review or audit by the relevant tax authorities. Uncertain tax positions are generally assessed individually, using the most likely outcome method. The Company and the relevant tax authorities may have different interpretations of how regulations should be applied to actual transactions (refer below for details regarding risks and uncertainties) |
Deferred taxation | Deferred taxation Deferred taxes are recognized using the liability method and thus are computed as the taxes recoverable or payable in future periods in respect of deductible or taxable temporary differences between the tax bases of assets and liabilities and their carrying amounts in the Company’s financial statements. |
Property and equipment | Property and equipment is stated at cost, net of any accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The useful of life of VEON's assets generally fall within the following ranges: 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 |
Intangible assets | Intangible assets acquired separately are carried at cost less accumulated amortization and impairment losses. Intangible assets with a finite useful life are generally amortized with the straight-line method over the estimated useful life of the intangible asset. The amortization period and the amortization method for intangible assets with finite useful lives are reviewed at least annually and fall within the following ranges: Class of intangible asset Useful life Telecommunications licenses, frequencies and permissions 3 - 20 years Software 3 - 10 years Brands and trademarks 3 - 15 years Customer relationships 10 - 21 years Other intangible assets 4 - 10 years |
Goodwill | Goodwill is recognized for the future economic benefits arising from net assets acquired that are not individually identified and separately recognized. Goodwill is not amortized but is tested for impairment annually and as necessary when circumstances indicate that the carrying value may be impaired, see Note 1 0 |
Control over subsidiaries | Control over subsidiaries Subsidiaries, which are those entities over which the Company is deemed to have control, are consolidated. In certain circumstances, significant judgment is required to assess if the Company is deemed to have control over entities where the Company’s ownership interest does not exceed 50%. The Group has concluded that it controls Omnium Telecom Algérie S.p.A and Optimum Telecom Algeria S.p.A even though its subsidiary, Global Telecom Holding S.A.E. owned less than 50% of the ordinary shares. This is because the Company can exercise operational control through terms of a shareholders’ agreement. Our partner in Algeria can acquire our shares at fair market value under call option arrangements exercisable solely at its discretion between October 1, 2021 and December 31, 2021. Concurrently, we have a right to require our partner in Algeria to acquire our shares under put option arrangements exercisable solely at our discretion between July 1, 2021 and September 30, 2021. Both option arrangements did not have any impact on our ability to consolidate Omnium Telecom Algérie S.p.A and Optimum Telecom Algeria S.p.A. |
Put options over non-controlling interest | Put options over non-controlling interest Put options over non-controlling interest of a subsidiary are accounted for as financial liabilities in the Company’s consolidated financial statements. The put-option redemption liability is measured at the discounted redemption amount. Interest over the put-option redemption liability will accrue in line with the effective interest rate method, until the options have been exercised or are expired. |
Derivative contracts | Derivative contracts VEON enters into derivative contracts, including swaps and forward contracts, to manage certain foreign currency and interest rate exposures. Any derivative instruments for which no hedge accounting is applied are recorded at fair value with any fair value changes recognized directly in profit or loss. Although some of the derivatives entered into by the Company have not been designated in hedge accounting relationships, they act as economic hedges and offset the underlying transactions when they occur. |
Hedges of a net investment | Hedges of a net investment The Company applies net investment hedge accounting to mitigate foreign currency translation risk related to the Company’s investments in foreign operations. The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognized in other comprehensive income within the “Foreign currency translation” line item. Where the hedging instrument’s foreign currency retranslation is greater (in absolute terms) than that of the hedged item, the excess amount is recorded in profit or loss as ineffectiveness. The gain or loss on the hedging instrument relating to the effective portion of the hedge that has been recognized in other comprehensive income shall be reclassified from equity to profit or loss as a reclassification adjustment on the disposal or partial disposal of the foreign operation. Cash flows arising from derivative instruments for which hedge accounting is applied are reported in the statement of cash flows within the line item where the underlying cash flows of the hedged item are recorded. |
Fair value of financial instruments | Fair value of financial instruments All financial assets and liabilities are measured at amortized cost, except those which are measured at fair value as presented within this Note. |
Measurement of lease liabilities | Measurement of lease liabilities Lease liabilities are measured upon initial recognition at the present value of the future lease and related fixed services payments over the lease term, discounted with the country specific incremental borrowing rate as the rate implicit in the lease is generally not available. Subsequently lease liabilities are measured at amortized cost using the effective interest rate method. A significant portion of the lease contracts included within Company’s lease portfolio includes lease contracts which are extendable through mutual agreement between VEON and the lessor, or lease contracts which are cancellable by the Company immediately or on short notice. The Company includes these cancellable future lease periods within the assessed lease term, which increases the future lease payments used in determining the lease liability upon initial recognition. |
Basis of preparation | BASIS OF PREPARATION These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ( “IFRS” ) as issued by the International Accounting Standards Board, effective at the time of preparing the consolidated financial statements and applied by VEON. The consolidated income statement has been presented based on the nature of the expense, other than ‘Selling, general and administrative expenses’, which has been presented based on the function of the expense. |
Basis of consolidation | BASIS OF CONSOLIDATION The consolidated financial statements comprise the financial statements of the Company and its subsidiaries. Subsidiaries are all entities (including structured entities) over which the Company has control. Please refer to Note 1 3 for a list of significant subsidiaries. Intercompany transactions, balances and unrealized gains or losses on transactions between Group companies are eliminated. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies. |
Foreign currency translation | FOREIGN CURRENCY TRANSLATION The consolidated financial statements of the Group are presented in U.S. dollars. Each entity in the Group determines its own functional currency and amounts included in the financial statements of each entity are measured using that functional currency. |
Changes in accounting policies and disclosures, new standards, interpretations, and amendments not yet adopted by the group | NEW STANDARDS AND INTERPRETATIONS Not yet adopted by the Group Certain new accounting standards and interpretations have been published that are not mandatory for December 31, 2020 reporting periods and have not been early adopted by the Group. These standards are not expected to have a material impact on VEON financial statements in current or future reporting periods or on foreseeable future transactions. Adopted in 2020 A number of new and amended standards became effective as of January 1, 2020, which did not have a material impact on VEON financial statements. The Group has not early adopted any other standards, interpretations or amendments that have been issued but have not yet become effective. In May 2020, the IASB issued an amendment to IFRS 16 'Leases', providing an option to apply a practical expedient in respect of accounting for certain rent concessions arising as a direct consequence of COVID-19, such as rent holidays and temporary rent reductions. Under this amendment, which became effective in 2020, lessees are exempted from having to consider whether these rent concessions are lease modifications. The Group has chosen not to apply the practical expedient available, and will therefore account for any rent concessions as lease modifications. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Summary of reportable segments financial information | Financial information by reportable segment for the periods ended December 31 is presented in the following tables. Inter-segment transactions between segments are not material, and are made on terms which are comparable to transactions with third parties. Total revenue Adjusted EBITDA CAPEX excl licenses and ROU 2020 2019 2018 2020 2019 2018 2020 2019 2018 Our cornerstone Russia 3,819 4,481 4,654 1,504 1,957 1,677 1,017 976 742 Our growth engines Pakistan 1,233 1,321 1,494 612 669 714 249 213 199 Ukraine 933 870 688 630 572 387 179 156 115 Kazakhstan 479 486 441 265 270 206 119 108 66 Uzbekistan 198 258 315 68 136 136 52 53 39 Our frontier markets Algeria 689 775 813 302 354 363 95 108 107 Bangladesh 537 537 521 228 222 183 126 82 93 Other frontier markets 125 172 201 22 63 54 33 38 43 Other HQ and eliminations (33) (37) (41) (177) (28) (447) 19 7 11 Total segments 7,980 8,863 9,086 3,454 4,215 3,273 1,889 1,741 1,415 |
Summary of segments reconciliation of consolidated Adjusted EBITDA to consolidated income statement before tax | The following table provides the reconciliation of consolidated Profit / (loss) before tax from continuing operations to Adjusted EBITDA for the years ended December 31: 2020 2019 2018 Profit / (loss) before tax from continuing operations 26 1,181 (248) Depreciation 1,576 1,652 1,339 Amortization 343 394 495 Impairment loss / (reversal) 785 108 858 (Gain) / loss on disposal of non-current assets 37 43 57 (Gain) / loss on disposal of subsidiaries 78 (1) (30) Finance costs 683 892 816 Finance income (23) (53) (67) Other non-operating (gain) / loss (111) (21) 68 Net foreign exchange (gain) / loss 60 20 (15) Total Segments Adjusted EBITDA 3,454 4,215 3,273 |
OPERATING REVENUE (Tables)
OPERATING REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [abstract] | |
Disaggregation of revenue from contracts with customers | The table below provides a breakdown of revenue from contracts with customers for the years ended December 31. In 2020, the Company has presented ‘Service revenue’ (Mobile and Fixed) separately from ‘Sale of equipment and accessories’ and ‘Other revenue’, for each reportable segment. Prior year comparatives have been adjusted to conform to current year presentation. Service revenue Sale of Equipment and accessories Other revenue Total revenue Mobile Fixed 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Our cornerstone Russia 2,917 3,485 3,679 523 539 566 366 446 396 13 11 13 3,819 4,481 4,654 Our growth engines Pakistan 1,134 1,229 1,391 — — — 11 6 8 88 86 95 1,233 1,321 1,494 Ukraine 869 812 641 59 52 44 — — — 5 6 3 933 870 688 Kazakhstan 392 379 363 78 66 73 7 2 4 2 39 1 479 486 441 Uzbekistan 196 255 312 1 2 2 — — — 1 1 1 198 258 315 Our frontier markets Algeria 685 771 801 — — — 4 2 4 — 2 8 689 775 813 Bangladesh 527 525 504 — — — — 1 5 10 11 12 537 537 521 Other frontier markets 102 135 159 19 27 32 4 8 10 — 2 — 125 172 201 Other HQ and eliminations (31) (37) (41) — — — — — — (2) — — (33) (37) (41) Total segments 6,791 7,554 7,809 680 686 717 392 465 427 117 158 133 7,980 8,863 9,086 |
Summary of breakdown of contract balances | The following table provides a breakdown of contract balances and capitalized customer acquisition costs. December 31, 2020 December 31, 2019 Contract balances Receivables (billed) 728 748 Contract assets (unbilled) 41 38 Contract liabilities (233) (243) Capitalized costs Customer acquisition costs 128 101 |
Summary of capitalized customer acquisition costs | The following table provides a breakdown of contract balances and capitalized customer acquisition costs. December 31, 2020 December 31, 2019 Contract balances Receivables (billed) 728 748 Contract assets (unbilled) 41 38 Contract liabilities (233) (243) Capitalized costs Customer acquisition costs 128 101 |
SELLING, GENERAL AND ADMINIST_2
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Selling, general and administrative expense [abstract] | |
Schedule of selling, general and administrative expenses | Selling, general and administrative expenses consisted of the following items for the years ended December 31: 2020 2019 2018 Network and IT costs 797 791 1,176 Personnel costs 815 875 889 Customer associated costs 653 720 867 Losses on receivables 62 66 62 Taxes, other than income taxes 57 158 217 Other 257 355 486 Total selling, general and administrative expenses 2,641 2,965 3,697 |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other current receivables [abstract] | |
Schedule of trade and other receivables | Trade and other receivables consisted of the following items as of December 31 : 2020 2019 Trade receivables (gross)* 769 786 Expected credit losses (198) (176) Trade receivables (net) 571 610 Other receivable, net of expected credit losses allowance 1 18 Total trade and other receivables 572 628 * Includes contract assets (unbilled receivables), see Note 3 |
Schedule of movements in the allowance for expected credit losses | The following table summarizes the movement in the allowance for expected credit losses for the years ended December 31: 2020 2019 Balance as of January 1 176 171 Accruals for expected credit losses 62 66 Recoveries (7) (8) Accounts receivable written off (16) (31) Reclassification — (24) Foreign currency translation adjustment (17) 2 Balance as of December 31 198 176 |
Schedule of aging of trade receivables | Set out below is the information about the Group’s trade receivables (including contract assets) using a provision matrix: Days past due Contract assets Current < 30 days Between 31 and 120 days > 120 days Total December 31, 2020 Expected loss rate, % 1.0 % 1.3 % 13.6 % 40.7 % 92.6 % Trade receivables 41 468 44 27 189 769 Expected credit losses — (6) (6) (11) (175) (198) Trade receivables, net 41 462 38 16 14 571 December 31, 2019 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 |
OTHER ASSETS AND LIABILITIES (T
OTHER ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Assets And Liabilities | |
Schedule of other non-current assets | Other assets consisted of the following items as of December 31: 2020 2019 Other non-current assets Customer acquisition costs (see Note 3) 128 101 Tax advances (non-income tax) 33 30 Other non-financial assets 18 32 Total other non-current assets 179 163 Other current assets Advances to suppliers 91 111 Input value added tax 159 158 Prepaid taxes 43 45 Other assets 42 40 Total other current assets 335 354 |
Schedule of other current assets | Other assets consisted of the following items as of December 31: 2020 2019 Other non-current assets Customer acquisition costs (see Note 3) 128 101 Tax advances (non-income tax) 33 30 Other non-financial assets 18 32 Total other non-current assets 179 163 Other current assets Advances to suppliers 91 111 Input value added tax 159 158 Prepaid taxes 43 45 Other assets 42 40 Total other current assets 335 354 |
Schedule of other non-current liabilities | Other liabilities consisted of the following items as of December 31: 2020 2019 Other non-current liabilities Long-term deferred revenue (see Note 3) 17 18 Other liabilities 11 15 Total other non-current liabilities 28 33 Other current liabilities Taxes payable (non-income tax) 372 411 Short-term deferred revenue (see Note 3) 158 161 Customer advances (see Note 3) 58 64 Other payments to authorities 95 97 Due to employees 168 197 Other liabilities 32 82 Total other current liabilities 883 1,012 |
Schedule of other current liabilities | Other liabilities consisted of the following items as of December 31: 2020 2019 Other non-current liabilities Long-term deferred revenue (see Note 3) 17 18 Other liabilities 11 15 Total other non-current liabilities 28 33 Other current liabilities Taxes payable (non-income tax) 372 411 Short-term deferred revenue (see Note 3) 158 161 Customer advances (see Note 3) 58 64 Other payments to authorities 95 97 Due to employees 168 197 Other liabilities 32 82 Total other current liabilities 883 1,012 |
PROVISIONS AND CONTINGENT LIA_2
PROVISIONS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of other provisions [abstract] | |
Schedule of movement in provisions | The following table summarizes the movement in provisions for the years ended December 31: Non-income tax provisions Decommi-ssioning provision Legal provision Other provisions Total 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 As of January 1, 2020 126 138 26 70 360 Arising during the year 24 10 — 1 35 Utilized (48) (1) — (22) (71) Unused amounts reversed (10) — (3) (6) (19) Transfer and reclassification — — — — — Discount rate adjustment and imputed interest (change in estimate) — 9 — — 9 Translation adjustments and other (6) (15) (1) — (22) As of December 31, 2020 86 141 22 43 292 Non-current — 141 — — 141 Current 86 — 22 43 151 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Major components of tax expense (income) [abstract] | |
Summary of income tax payables | Current income tax payable consisted of the following items as of December 31: 2020 2019 Current tax payable 30 36 Uncertain tax provisions 145 66 Total income tax payable 175 102 |
Summary of income tax expense | Income tax expense consisted of the following for the years ended December 31: 2020 2019 2018 Current income taxes Current year 404 495 477 Adjustments in respect of previous years (1) 5 9 Total current income taxes 403 500 486 Deferred income taxes Movement of temporary differences and losses (72) (36) (152) Changes in tax rates — (1) 6 Changes in recognized deferred tax assets 2 39 — Adjustments in respect of previous years 9 3 28 Other — (7) 1 Total deferred tax expense / (benefit) (61) (2) (117) Income tax expense 342 498 369 |
Summary of reconciliation between statutory and effective income tax | The table below outlines the reconciliation between the statutory tax rate in the Netherlands (25%) and the effective income tax rates for the Group, together with the corresponding amounts, for the years ended December 31: 2020 2019 2018 Explanatory notes Profit / (loss) before tax from continuing operations 26 1,181 (248) Income tax benefit / (expense) at statutory tax rate (25%) (7) (295) 62 Difference due to the effects of: Different tax rates in different jurisdictions (28) 20 89 Certain jurisdictions in which VEON operates have income tax rates which are different to the Dutch statutory tax rate of 25%. Profitability in countries with higher tax rates (including Pakistan, Algeria and Bangladesh) has a negative impact on the effective tax rate. Non-deductible expenses (210) (90) (120) The Group incurs certain expenses which are non-deductible in the relevant jurisdiction. In 2020, as in previous years, such expenses include impairment losses (unless resulting in a change in temporary differences), certain non-income tax charges (i.e. minimum tax regimes) and some intra-group expenses (i.e. interest on internal loans). Non-taxable income 37 5 49 The Group earns certain income which is non-taxable in the relevant jurisdiction. In 2020, non-taxable income included the revaluation of contingent consideration liability, as well as a gain relating to the settlement in connection with the dispute concerning the sale of Telecel Globe Limited. For further details, refer to Note 15 and Note 7 , respectively. Adjustments in respect of previous years (3) (49) (39) The effect of prior year adjustments mainly relates to updated tax positions. Movements in (un)recognized deferred tax assets (89) (13) (354) Movements in (un)recognized deferred tax assets are primarily caused by tax losses and other credits for which no deferred tax asset has been recognized. This primarily occurs in holding entities in the Netherlands (2020: US$101, 2019: US$42, 2018: US$147) and in GTH (2020: nil, 2019: US$43, 2018: US$213. Withholding taxes (56) (50) 45 Withholding taxes are recognized to the extent that dividends from foreign operations are expected to be paid in the foreseeable future. In 2020, similar to previous years, expenses relating to withholding taxes were primarily influenced by dividends expected from Russia, Algeria and Pakistan. Uncertain tax positions (1) 6 (17) The tax legislation in the markets in which VEON operates is unpredictable and gives rise to significant uncertainties (see ‘Source of estimation uncertainty’ below). Movements in uncertain tax positions stem from such uncertainties. The impact of movements in uncertain tax positions is presented net of any corresponding deferred tax assets recognized. Change in income tax rate — 1 (6) Changes in tax rates impact the valuation of existing temporary differences. The nominal tax rates did not change in our operating jurisdictions in 2020. Nominal tax rate changes occurred in Pakistan in 2019 and 2018 and Uzbekistan in 2018. Other 15 (33) (78) In 2019, the Group recorded an increase in income tax liabilities of US$29 as a result of the settlement with the Egyptian Tax Authority for outstanding tax liabilities for GTH. Refer to Note 7 for further details. Income tax benefit / (expense) (342) (498) (369) Effective tax rate 1,315.4 % 42.2 % -148.8 % |
Schedule of deferred tax assets and liabilities in the statement of financial position | The Group reported the following deferred tax assets and liabilities in the statement of financial position as of December 31: 2020 2019 Deferred tax assets 186 134 Deferred tax liabilities (127) (141) Net deferred tax position 59 (7) |
Summary of movements of deferred tax assets and liabilities | The following table shows the movements of net deferred tax positions in 2020: Movement in deferred taxes Opening balance Net income statement movement Other movements Closing balance Property and equipment (288) (23) 37 (274) Intangible assets (38) 19 5 (14) Trade receivables 47 1 (5) 43 Provisions 31 1 (4) 28 Accounts payable 156 7 (23) 140 Withholding tax on undistributed earnings (52) (8) — (60) Tax losses and other balances carried forwards 2,026 113 82 2,221 Non-recognized deferred tax assets (1,894) (46) (85) (2,025) Other 5 (3) (2) — Net deferred tax positions (7) 61 5 59 The following table shows the movements of net deferred tax positions in 2019: Movement 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) |
Summary of amount and expiry date of deductible temporary differences, unused tax losses and other carry forwards | VEON recognizes a deferred tax asset for unused tax losses and other credits carried forwards, to the extent that it is probable that the deferred tax asset will be utilized. The amount and expiry date of unused tax losses and other carry forwards for which no deferred tax asset is recognized are as follows: As of December 31, 2020 0-5 years 6-10 years More than 10 years Indefinite Total Tax losses expiry Recognized losses — (107) — (172) (279) Recognized DTA — 27 — 49 76 Non-recognized losses (1,546) (1,006) — (6,660) (9,212) Non-recognized DTA 387 252 — 1,272 1,911 Other credits carried forwards expiry Recognized credits (19) (102) — — (121) Recognized DTA 19 102 — — 121 Non-recognized credits — — — (492) (492) Non-recognized DTA — — — 115 115 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 |
SIGNIFICANT TRANSACTIONS (Table
SIGNIFICANT TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Transactions | |
Schedule of effect of the disposal | The effect of the disposal is detailed below: 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 |
IMPAIRMENT OF ASSETS (Tables)
IMPAIRMENT OF ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of impairment loss and reversal of impairment loss [abstract] | |
Schedule of total amount of the impairment loss allocated to the carrying amounts of assets | Property and equipment Intangible assets Goodwill Other Total impairment 2020 Russia — — 723 — 723 Kyrgyzstan 38 8 — 18 64 Other 5 — — (7) (2) 43 8 723 11 785 Property and equipment Intangible assets Goodwill Total impairment 2019 Kyrgyzstan 33 3 54 90 Other 18 — — 18 51 3 54 108 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 |
Schedule of key assumptions used in fair value less costs of disposal calculations | The tables below show key assumptions used in fair value less costs of disposal calculations for CGUs with material goodwill or those CGUs for which an impairment has been recognized. Discount rates 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 and small capitalization premium is sourced from independent market analysts. 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 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. Discount rate 2020 2019 2018 Russia 10.1 % 9.1 % 10.3 % Algeria 11.6 % 10.4 % 11.1 % Pakistan 18.2 % 14.5 % 14.4 % Bangladesh — — 12.2 % Kazakhstan 10.3 % 9.2 % 8.4 % Kyrgyzstan * — 14.1 % 14.8 % Uzbekistan 13.8 % 14.5 % 13.1 % Armenia — — 12.5 % Georgia — — 10.6 % * In 2020, VEON fully impaired the carrying value of all operating assets of Kyrgyzstan, therefore discount rate was not determined Revenue growth rates The revenue growth rates during the forecast period vary based on numerous factors, including size of market, GDP (Gross Domestic Product), foreign currency projections, traffic growth, market share and others. 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. Average annual revenue growth rate during forecast period Terminal growth rate 2020 2019 2018 2020 2019 2018 Russia 4.3 % 1.4 % 1.1 % 1.8 % 1.6 % 1.3 % Algeria 4.3 % 1.0 % 0.7 % 1.0 % 1.0 % 0.9 % Pakistan 9.7 % 3.9 % 3.5 % 5.8 % 2.7 % 4.0 % Bangladesh — — 0.6 % — — 4.0 % Kazakhstan 5.3 % 5.3 % 2.8 % 3.1 % 3.3 % 1.1 % Kyrgyzstan * — 1.6 % 2.8 % — 5.0 % 5.0 % Uzbekistan 3.2 % 4.1 % 5.5 % 5.1 % 6.0 % 6.3 % Armenia — — 0.2 % — — 0.8 % Georgia — — 2.1 % — — 3.0 % * In 2020, VEON fully impaired the carrying value of all operating assets of Kyrgyzstan, therefore revenue growth rates were not determined Operating margin The Compan y 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 and forecast calculations 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 operating margin during the forecast period Terminal period operating margin 2020 2019 2018 2020 2019 2018 Russia 31.2 % 34.7 % 34.6 % 35.7 % 34.5 % 34.7 % Algeria 39.9 % 42.6 % 44.0 % 40.4 % 43.1 % 45.0 % Pakistan 42.0 % 47.3 % 47.9 % 44.6 % 47.3 % 49.1 % Bangladesh — — 35.4 % — — 35.7 % Kazakhstan 49.5 % 49.9 % 46.5 % 50.0 % 50.1 % 46.7 % Kyrgyzstan * — 31.4 % 39.9 % — 33.0 % 39.0 % Uzbekistan 34.0 % 51.4 % 43.9 % 34.0 % 52.4 % 44.1 % Armenia — — 23.6 % — — 23.4 % Georgia — — 24.5 % — — 25.6 % * In 2020, VEON fully impaired the carrying value of all operating assets of Kyrgyzstan, therefore operating margin assumptions were not determined CAPEX CAPEX is defined as purchases of property and equipment and intangible assets excluding licenses, goodwill and right-of-use assets. The cash flow forecasts for capital expenditures are based on the budget and forecast calculations and include the network roll-outs plans and license requirements. 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. Payments for right-of-use assets are considered in the operating margin as described above. Average CAPEX as a percentage of revenue during the forecast period Terminal period CAPEX as a percentage of revenue 2020 2019 2018 2020 2019 2018 Russia 27.9 % 19.9 % 19.8 % 21.0 % 18.5 % 15.0 % Algeria 15.2 % 12.5 % 15.1 % 14.0 % 12.0 % 14.0 % Pakistan 19.6 % 17.2 % 16.7 % 18.9 % 17.1 % 14.0 % Bangladesh — — 14.9 % — — 12.0 % Kazakhstan 19.8 % 20.0 % 17.7 % 19.0 % 19.5 % 17.0 % Kyrgyzstan * — 26.9 % 17.2 % — 20.0 % 15.0 % Uzbekistan 21.4 % 19.4 % 16.2 % 21.0 % 20.1 % 16.2 % Armenia — — 21.0 % — — 14.0 % Georgia — — 23.8 % — — 14.0 % * In 2020, VEON fully impaired the carrying value of all operating assets of Kyrgyzstan, therefore CAPEX assumptions were not determined |
Schedule of information for cash-generating units | The following table illustrates the potential additional impairment for the Russia CGU and the potential impairment or remaining headroom for the Algeria CGU if certain key parameters would adversely change by one percentage point within both the explicit forecast and terminal periods ('+/- 1.0 pp'), as well as the change in key assumptions required in order for the recoverable amount of the CGU to be equal to its book value ('Break-even'). Any additional adverse changes in the key parameters by more than one percentage point would increase the amount of impairment exposure approximately proportionally. Russia Algeria Sensitivity analysis Assumption used * +/- 1.0 pp Break-even ** Assumption used * +/- 1.0 pp Break-even Discount rate 10.1% 11.1% 10.1% 11.6% 12.6% 12.2% Change in key assumption 0.0 pp 1.0 pp 0.0 pp 0.0 pp 1.0 pp 0.6 pp Headroom / (impairment) — (473) — 75 (44) — Average annual revenue growth rate 3.9% 2.9% 3.9% 3.8% 2.8% 2.9% Change in key assumption 0.0 pp (1.0) pp 0.0 pp 0.0 pp (1.0) pp (0.9) pp Headroom / (impairment) — (250) — 75 (12) — Average operating margin 32.0% 31.0% 32.0% 40.0% 39.0% 38.7% Change in key assumption 0.0 pp (1.0) pp 0.0 pp 0.0 pp (1.0) pp (1.3) pp Headroom / (impairment) — (375) — 75 19 — Average CAPEX / revenue 26.8% 27.8% 26.8% 15.0% 16.0% 16.4% Change in key assumption 0.0 pp 1.0 pp 0.0 pp 0.0 pp 1.0 pp 1.4 pp Headroom / (impairment) — (380) — 75 22 — * Combined average based on explicit forecast period of five years (2021-2025) and terminal period (2026), excludes intervening period of 2020 ** Following the recognition of an impairment loss in the third quarter of 2020, the book value of the Russia CGU is equal to its recoverable amount. As such, the 'break-even' assumptions for the Russia are equivalent to the Assumptions used. |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Schedule of property and equipment | The following table summarizes the movement in the net book value of property and equipment for the years ended December 31: Net book value Telecomm-unications equipment Land, Office and other equipment Equipment not installed and assets under construction Right-of-use assets Total As of January 1, 2019 3,937 202 393 329 2,023 6,884 Additions 80 — 8 1,453 299 * 1,840 * 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) — — Translation adjustment 177 20 33 28 146 404 As of December 31, 2019 4,306 216 417 416 1,985 7,340 Additions 47 2 32 1,626 446 2,153 Disposals (50) (5) (10) (12) (14) (91) Depreciation charge for the year (1,009) (28) (123) — (416) (1,576) Impairment (28) (1) (2) (7) (5) (43) Transfers 1,282 5 111 (1,396) (2) — Translation adjustment (498) (30) (57) (59) (260) (904) As of December 31, 2020 4,050 159 368 568 1,734 6,879 Cost 10,893 377 1,330 687 2,526 15,813 Accumulated depreciation and impairment (6,843) (218) (962) (119) (792) (8,934) * Prior year comparatives have been re-presented to conform with current year presentation. |
Schedule of movements in net book value of right-of-use assets | The following table summarizes the movement in the net book value of right-of-use assets ( "ROU" ) for the year ended December 31: 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 236 63 — 299 Disposals (27) (6) (2) (35) Depreciation charge for the year (306) (140) (2) (448) Impairment — — — — Transfers 18 (18) — — Translation adjustment 116 30 — 146 As of December 31, 2019 1,638 344 3 1,985 Additions 339 102 5 446 Disposals (14) — — (14) Depreciation charge for the year (309) (105) (2) (416) Impairment (1) (4) — (5) Transfers — (2) — (2) Translation adjustment (217) (42) (1) (260) As of December 31, 2020 1,436 293 5 1,734 Cost 2,021 496 9 2,526 Accumulated depreciation and impairment (585) (203) (4) (792) |
Schedule of capital commitments for the future purchase of equipment | Capital commitments for the future purchase of equipment are as follows as of December 31: 2020 2019 Less than 1 year 747 677 Between 1 and 5 years 19 19 Total commitments 766 696 Capital commitments for the future purchase of intangible assets are as follows as of December 31: 2020 2019 Less than 1 year 31 77 Between 1 and 5 years — 5 Total commitments 31 82 |
Schedule of estimated useful lives | Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The useful of life of VEON's assets generally fall within the following ranges: 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 Class of intangible asset Useful life Telecommunications licenses, frequencies and permissions 3 - 20 years Software 3 - 10 years Brands and trademarks 3 - 15 years Customer relationships 10 - 21 years Other intangible assets 4 - 10 years |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [abstract] | |
Schedule of total gross carrying value and accumulated amortization of intangible assets | The following table summarizes the movement in the net book value of intangible assets for the years ended December 31: Net book value Telecommuni-cation licenses, frequencies & permissions Software Brands and trademarks Customer relationships Other intangible assets Goodwill Total As of January 1, 2019 1,195 264 178 177 25 3,816 5,655 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 Additions 53 188 3 5 5 13 267 Disposals — (6) — — — — (6) Amortization charge for the year (139) (159) (23) (15) (7) — (343) Impairment (5) (3) — — — (723) (731) Transfer — 6 — — (6) — — Translation adjustment (88) (41) (12) (16) 1 (567) (723) As of December 31, 2020 921 301 117 116 15 2,682 4,152 Cost 2,170 1,041 457 1,530 148 4,845 10,191 Accumulated amortization and impairment (1,249) (740) (340) (1,414) (133) (2,163) (6,039) |
Schedule of changes in goodwill per cash-generating unit | During the year, the movement in goodwill for the Group, per CGU , consisted of the following: CGU December 31, Impairment Translation adjustment Addition December 31, Russia 1,131 (723) (424) 13 2,265 Algeria 1,053 — (114) — 1,167 Pakistan 324 — (11) — 335 Kazakhstan 140 — (14) — 154 Uzbekistan 34 — (4) — 38 Total 2,682 (723) (567) 13 3,959 CGU December 31, Impairment Translation adjustment December 31, 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 |
Schedule of capital commitments for the future purchase of intangible assets | Capital commitments for the future purchase of equipment are as follows as of December 31: 2020 2019 Less than 1 year 747 677 Between 1 and 5 years 19 19 Total commitments 766 696 Capital commitments for the future purchase of intangible assets are as follows as of December 31: 2020 2019 Less than 1 year 31 77 Between 1 and 5 years — 5 Total commitments 31 82 |
Schedule of estimated useful lives | Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The useful of life of VEON's assets generally fall within the following ranges: 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 Class of intangible asset Useful life Telecommunications licenses, frequencies and permissions 3 - 20 years Software 3 - 10 years Brands and trademarks 3 - 15 years Customer relationships 10 - 21 years Other intangible assets 4 - 10 years |
INVESTMENTS IN SUBSIDIARIES (Ta
INVESTMENTS IN SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of subsidiaries [abstract] | |
Schedule of information about significant subsidiaries | The Company held investments in material subsidiaries for the years ended December 31 as detailed in the table below. The equity interest presented represents the economic rights available to the Company. Equity interest held by the Group Name of significant subsidiary Country of incorporation Nature of subsidiary 2020 2019 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 % 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 99.6 % 99.5 % Omnium Telecom Algérie S.p.A.* Algeria Holding 45.4 % 45.4 % Optimum Telecom Algeria S.p.A.* Algeria Operating 45.4 % 45.4 % Pakistan Mobile Communications Limited Pakistan Operating 85.0 % 85.0 % Banglalink Digital Communications Limited Bangladesh Operating 100.0 % 100.0 % * The Group has concluded that it controls Omnium Telecom Algérie S.p.A and Optimum Telecom Algeria S.p.A, see 'Significant accounting judgments' below for further details. |
Schedule of information about materially partly-owned subsidiaries | Financial information of subsidiaries that have material non-controlling interests ( “NCIs” ) is provided below: Equity interest held by NCIs Book values of Profit / (loss) attributable to material NCIs Name of significant subsidiary 2020 2019 2020 2019 2020 2019 LLP “KaR-Tel” ( “Kar-Tel” ) 25.0 % 25.0 % 97 106 26 27 Omnium Telecom Algérie S.p.A. ( “OTA” ) 54.4 % 54.4 % 783 871 43 55 |
Schedule of summarized income statement of subsidiaries before inter-company eliminations | Summarized income statement Kar-Tel OTA 2020 2019 2018 2020 2019 2018 Operating revenue 446 461 410 689 775 813 Operating expenses (316) (319) (319) (564) (621) (754) Other (expenses) / income 4 (6) 6 (17) (17) (11) Profit / (loss) before tax 134 136 97 108 137 48 Income tax expense (28) (29) (20) (29) (36) (47) Profit / (loss) for the year 106 107 77 79 101 1 Total comprehensive income / (loss) 106 107 77 79 101 1 Attributed to NCIs 26 27 19 43 55 1 Dividends paid to NCIs — — — 46 69 76 |
Schedule of summarized financial position of subsidiaries before inter-company eliminations | Summarized statement of financial position Kar-Tel OTA 2020 2019 2020 2019 Property and equipment 276 271 492 600 Intangible assets 94 86 116 158 Other non-current assets 162 185 1,071 1,187 Trade and other receivables 21 18 31 34 Cash and cash equivalents 37 39 67 67 Other current assets 31 12 50 42 Debt and derivatives (75) (63) (102) (134) Provisions (6) (6) (23) (22) Other liabilities (152) (119) (267) (334) Total equity 388 423 1,435 1,598 Attributed to: Equity holders of the parent 291 317 652 727 Non-controlling interests 97 106 783 871 |
Schedule of summarized cash flow statement of subsidiaries before inter-company eliminations | Summarized statement of cash flows Kar-Tel OTA 2020 2019 2018 2020 2019 2018 Net operating cash flows 184 199 148 211 305 245 Net investing cash flows (88) (84) (42) (102) (84) (118) Net financing cash flows (97) (104) (90) (103) (205) (193) Net foreign exchange difference (2) — (3) (5) (1) (5) Net increase / (decrease) in cash equivalents (3) 11 13 1 15 (71) |
OTHER NON-OPERATING GAIN _ (L_2
OTHER NON-OPERATING GAIN / (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Non-Operating Gain (Loss) | |
Schedule of other non-operating gains / (losses) | Other non-operating gains / (losses) consisted of the following for the years ended December 31: 2020 2019 2018 Ineffective portion of hedging activities * 15 20 8 Change of fair value of other derivatives 6 (17) (58) Gain /(loss) from money market funds * 12 21 — Loss from early debt redemption — — (30) Other gains / (losses) 78 (3) 12 Other non-operating gain / (loss), net 111 21 (68) * Prior year comparatives have been re-presented to conform with current year presentation. |
INVESTMENTS, DEBT AND DERIVAT_2
INVESTMENTS, DEBT AND DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of financial assets | The Company holds the following investments and derivatives as of December 31: Carrying value 2020 2019 At fair value Derivatives not designated as hedges 20 11 Derivatives designated as net investment hedges 3 — Investments in debt instruments * 75 34 Other 8 — 106 45 At amortized cost Security deposits and cash collateral 325 256 Other investments 39 16 364 272 Total investments and derivatives 470 317 Non-current 305 235 Current 165 82 * Investments in debt instruments relate to government bonds or bills and are measured at fair value through other comprehensive income (with recycling). |
Schedule of financial liabilities | The Company holds the following outstanding debt and derivatives as of December 31: Carrying value 2020 2019 At fair value Derivatives not designated as hedges 52 52 Derivatives designated as net investment hedges 1 161 Contingent consideration — 41 53 254 At amortized cost Principal amount outstanding 7,678 7,519 Interest accrued 85 79 Discounts, unamortized fees, hedge basis adjustment (5) (10) Bank loans and bonds 7,758 7,588 Lease liabilities 1,912 2,083 Put-option liability over non-controlling interest 273 342 Other financial liabilities 60 77 10,003 10,090 Total debt and derivatives 10,056 10,344 Non-current 8,832 7,759 Current 1,224 2,585 |
Schedule of principal amounts outstanding for interest-bearing loans and bonds | The Company had the following principal amounts outstanding for interest-bearing loans and bonds at December 31: Principal amount outstanding Borrower Type of debt Guarantor Currency Interest rate Maturity 2020 2019 VEON Holdings Loans None RUB 8.75% to 10.0% 2022 — 2,303 VEON Holdings Loans None RUB 7.35% to 7.50% 2024-2025 812 — VEON Holdings Loans None RUB CBR Key Rate + 1.85% to 2.20% 2023-2025 1,083 — VEON Holdings Notes None US$ 5.95% 2023 529 529 VEON Holdings Notes None US$ 3.95% to 4.95% 2024 533 1,133 VEON Holdings Notes PJSC VimpelCom US$ 7.50% 2022 417 417 VEON Holdings Notes None US$ 3.38% 2027 1,250 — VEON Holdings Notes None US$ 7.25% 2023 700 — VEON Holdings Notes None RUB 6.30% to 6.50% 2025 406 — VEON Holdings Notes None US$ 4.00% 2025 1,000 700 GTH Finance B.V. Notes VEON Holdings US$ 6.25% to 7.25% 2020-2023 — 1,200 PJSC VimpelCom, via VIP Finance Ireland Eurobonds None US$ 7.75% 2021 262 262 PMCL Loans None PKR 6mKIBOR + 0.35% 2022 111 192 PMCL Loans None PKR 6mKIBOR + 0.8% 2020 — 34 PMCL Loan EKN * US$ 6mLIBOR + 1.9% 2020 — 75 PMCL Loan None PKR 6mKIBOR + 0.55% 2026 273 121 PMCL Loan None PKR 6mKIBOR 2023 29 41 Banglalink Loan None US$ 3mLIBOR + 2.50% 2020 — 300 Banglalink Loans None BDT Average bank deposit rate +3.0% to 4.25% 2021-2022 80 116 PJSC Kyivstar Loans None UAH NBU Key rate + 3.00% 2021-2023 56 — PJSC Kyivstar Loans None UAH 10.15% to 11.00% 2023-2025 85 — Other bank loans and bonds 52 96 Total bank loans and bonds 7,678 7,519 |
Schedule of reconciliation of cash flows from financing activities | Reconciliation of cash flows from financing activities Bank loans and bonds Lease liabilities Total 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, 2019 7,588 2,083 9,671 Cash flows Proceeds from borrowings, net of fees paid 4,621 — 4,621 Repayment of debt (4,054) (322) (4,376) Interest paid (494) (150) (644) Non-cash movements Interest and fee accruals 546 156 702 Lease additions, disposals, impairment and modifications — 432 432 Foreign currency translation (398) (286) (684) Other non-cash movements (51) — (51) Balance as of December 31, 2020 7,758 1,913 9,671 |
Schedule of hedge accounting with derivatives as hedging items | The following table sets out the Company’s hedging instruments designated as net investment hedges as of December 31: Hedging instruments * Designated rate Excluded component Hedged Currency Aggregated designated nominal value of hedged items, million 2020 2019 Foreign currency forward contracts Forward foreign currency basis spread PJSC VimpelCom RUB 26,758 ** 88,220 ** * Refer to the Debt and Derivatives section above in this Note for information regarding the carrying amounts of the hedging instruments. ** Hedging instruments have a weighted average term to maturity of 1 year as of December 31, 2020 (2019: 1 year ). The below table sets out the reconciliation of each component of equity and the analysis of other comprehensive income (all of which are attributable to the equity owners of the parent): Foreign currency translation reserve Cost of hedging reserve ** As of January 1, 2019 (8,416) 5 Foreign currency revaluation of the foreign operations and other 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 Foreign currency revaluation of the foreign operations (615) — Effective portion of foreign currency revaluation of the hedging instruments * 178 — Change in fair value of foreign currency basis spreads — 7 Amortization of time-period related foreign currency basis spreads — (15) Other movements in foreign currency translation reserve (26) — As of December 31, 2020 (8,775) 1 * Amounts represent the changes in fair value of the hedging instruments and closely approximate the changes in value of the hedged items used to recognize hedge ineffectiveness. |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | Cash and cash equivalents consisted of the following items as of December 31: 2020 2019 Cash and cash equivalents at banks and on hand 694 932 Cash equivalents with original maturity of less than three months 900 318 Cash and cash equivalents 1,594 1,250 Less overdrafts (8) (46) Cash and cash equivalents, net of overdrafts, as presented in the consolidated statement of cash flows 1,586 1,204 |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of risk management strategy related to hedge accounting [abstract] | |
Schedule of sensitivity analysis | The following table demonstrates the sensitivity to a possible change in exchange rates against the US dollar with all other variables held constant. Additional sensitivity changes to the indicated currencies are expected to be approximately proportionate. The table shows the effect on the Company’s profit before tax (due to changes in the value of monetary assets and liabilities, including foreign currency derivatives) and equity (due to application of hedge accounting or existence of quasi equity loans). The Company’s exposure to foreign currency changes for all other currencies is not material. Effect on profit / (loss) before tax Effect on other comprehensive income Change in foreign exchange rate against US$ 10% depreciation 10% appreciation 10% depreciation 10% appreciation 2020 Russian Ruble 35 (39) 32 (39) Bangladeshi Taka (30) 33 — — Pakistani Rupee (4) 4 — — Georgian Lari (36) 40 — — Other currencies (net) 8 (9) 4 (4) 2019 Russian Ruble (9) 11 119 (145) Bangladeshi Taka (27) 30 — — Pakistani Rupee (10) 11 — — Georgian Lari (36) 39 — — Other currencies (net) (4) 5 — — |
Schedule of available facilities for liquidity risk | The Company had the following available facilities as of December 31: Amounts in millions of transactional currency US$ equivalent amounts Final availability period Facility amount Utilized Available Facility amount Utilized Available 2020 VEON Holdings B.V. – Revolving Credit Facility * Feb 2022 US$1,585 * — US$1,585 1,585 — 1,585 PMCL - Term Facility Sep 2021 PKR 14,369 PKR 9,999 PKR 4,370 90 62 28 Kartel - Term Facility Nov 2023 KZT 10,000 KZT 5,000 KZT 5,000 24 12 12 * Facility amount of US$1,586 is available until February 2021. Subsequently, a reduced facility amount of US$1,382 is available until February 2022. In March 2021, VEON entered into a new multi-currency revolving credit facility agreement, refer to Note 22 for further details. Amounts in millions of transactional currency US$ 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 |
Schedule of maturity analysis of financial liabilities | The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments. Payments related to variable interest rate financial liabilities and derivatives are included based on the interest rates and foreign currency exchange rates applicable as of December 31, 2020 and 2019, respectively. The total amounts in the table differ from the carrying amounts as stated in Note 15 as the below table includes both undiscounted principal amounts and interest while the carrying amounts are measured using the effective interest rate method. Less than 1 year 1-3 years 3-5 years More than 5 years Total As of December 31, 2020 Bank loans and bonds 842 3,803 3,123 1,408 9,176 Lease liabilities 525 896 639 239 2,299 Derivative financial liabilities Gross cash inflows (228) — — — (228) Gross cash outflows 237 — — — 237 Trade and other payables 1,977 — — — 1,977 Other financial liabilities — 60 — — 60 Warid non-controlling interest put option liability 273 — — — 273 Total financial liabilities 3,626 4,759 3,762 1,647 13,794 Related derivatives financial assets Gross cash inflows 152 — — — 152 Gross cash outflows (149) — — — (149) Related derivative financial assets 3 — — — 3 Total financial liabilities, net of derivative assets 3,629 4,759 3,762 1,647 13,797 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 |
ISSUED CAPITAL AND RESERVES (Ta
ISSUED CAPITAL AND RESERVES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ISSUED CAPITAL AND RESERVES | |
Summary of common shares | The following table details the common shares of the Company as of December 31: 2020 2019 Authorized common shares (nominal value of US$0.001 per share) 1,849,190,667 1,849,190,667 Issued shares, including 7,603,731 shares held by a subsidiary of the Company 1,756,731,135 1,756,731,135 |
Summary of major shareholders | As of December 31, 2020, the Company’s largest shareholders and remaining free float are as follows: 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 % * 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. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Schedule of earnings per share for continuing operations | The following table sets forth the computation of basic and diluted earnings per share for continuing operations, for the years ended December 31: Continuing operations 2020 2019 2018 (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 (349) 621 (397) 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 ($0.20) $0.36 ($0.23) Diluted (loss) / earnings per share ($0.20) $0.36 ($0.23) |
Schedule of earnings per share for discontinued operations | The following table sets forth the computation of basic and diluted earnings per share for discontinued operations, for the years ended December 31: Discontinued operations 2020 2019 2018 (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 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 $0.00 $0.56 Diluted (loss) / earnings per share $0.00 $0.00 $0.56 |
DIVIDENDS PAID AND PROPOSED (Ta
DIVIDENDS PAID AND PROPOSED (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Dividends Paid And Proposed | |
Schedule of dividends | The following table provides an overview of dividends announced by VEON in respect of the year 2019: Dividends declared Dividends paid Dividends, US$ cents per share Final for 2019 February 2020 March 2020 15 Interim for 2019 August 2019 August 2019 13 |
Schedule of declared dividends paid or payable to non-controlling interests | During 2020, 2019 and 2018, certain subsidiaries of the Company declared dividends, of which a portion was paid or payable to non-controlling interests as shown in the table below: Name of subsidiary 2020 2019 2018 Omnium Telecom Algeria S.p.A 45 69 76 VIP Kazakhstan Holding AG 24 24 — TNS Plus LLP 16 12 13 Other 2 3 4 Total dividends declared to non-controlling interests 87 108 93 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of transactions between related parties [abstract] | |
Schedule of compensation paid to key management personnel | The following table sets forth the total compensation paid to our directors and senior managers, who are considered to be key management of the company: 2020 2019 2018 Short-term employee benefits 35 48 33 Long-term employee benefits 1 — — Share-based payments — 3 — Termination benefits 4 — 2 Total compensation to directors and senior management * 40 51 35 |
Schedule of compensation paid to key management board members | The following table sets forth the total remuneration expense to the key senior managers in 2020 and 2019 (gross amounts in whole euro and whole US$ equivalents). For further details on compensation and changes to key senior managers, please refer to the Explanatory notes below. In whole euros Kaan Terzioglu Sergi Herrero Ursula Burns Serkan Okandan Trond Westlie Murat Kirkgoz Kjell Johnsen Scott Dresser Alex Kazbegi Joop Brakenhoff Group Co-CEO Group Co-CEO Group CEO Group CFO Group CFO Deputy Group CFO Group COO Group General Counsel Chief Strategy Officer Chief Internal Audit & Compliance Officer 2020 Short-term employee benefits Base salary 1,323,000 1,181,368 1,162,750 864,000 16,810 211,600 — 1,300,000 553,500 224,100 Annual incentive 930,418 769,643 540,984 525,730 — 80,302 — 2,300,000 338,378 147,813 Other 439,657 2,158,022 554,328 297,341 212,631 40,360 299,333 24,100 104,124 39,908 Long-term employee benefits 76,366 706,925 — — — — — — — — Share-based payments 88,056 58,707 111,403 76,316 (217,080) (7,954) (217,080) (65,526) — 8,775 Termination benefits — — — — — — — — — — Total remuneration expense * 2,857,497 4,874,665 2,369,465 1,763,387 12,361 324,308 82,253 3,558,574 996,002 420,596 2019 Short-term employee benefits Base salary 220,500 342,036 5,500,000 — 1,500,000 264,500 1,250,000 1,300,000 394,795 — Annual incentive 472,151 514,460 10,461,000 — 1,455,216 211,713 4,184,355 2,258,882 700,000 — Other 105,999 1,560,229 1,146,503 — 24,100 35,750 46,857 29,100 677,662 — Long-term employee benefits — — — — — — — — — — Share-based payments — — — — 64,842 8,242 (828,047) (697,504) — — Termination benefits — — — — — — — — — — Total remuneration expense 798,650 2,416,725 17,107,503 — 3,044,158 520,205 4,653,165 2,890,478 1,772,457 — * Total remuneration expense for 2020 excludes accrued payroll taxes of EUR9 million (US$10) recorded in ‘Selling, general and administrative expenses’ incurred by the Company pertaining to payments made to Ursula Burns, Kjell Johnson. In whole US dollars Kaan Terzioglu Sergi Herrero Ursula Burns Serkan Okandan Trond Westlie Murat Kirkgoz Kjell Johnsen Scott Dresser Alex Kazbegi Joop Brakenhoff Group Co-CEO Group Co-CEO Group CEO Group CFO Group CFO Deputy Group CFO Group COO Group General Counsel Chief Strategy Officer Chief Internal Audit & Compliance Officer 2020 Short-term employee benefits Base salary 1,508,380 1,346,902 1,325,676 985,064 19,165 241,250 — 1,482,157 631,057 255,501 Annual incentive 1,060,789 877,486 616,787 599,396 — 91,554 — 2,622,278 385,792 168,525 Other 501,262 2,460,406 632,001 339,005 242,425 46,015 341,276 27,477 118,714 45,500 Long-term employee benefits 87,066 805,980 — — — — — — — — Share-based payments 100,394 66,933 127,013 87,009 (247,497) (9,069) (247,497) (74,708) — 10,005 Termination benefits — — — — — — — — — — Total remuneration expense * 3,257,891 5,557,707 2,701,477 2,010,474 14,093 369,750 93,779 4,057,204 1,135,563 479,531 2019 Short-term employee benefits Base salary 246,782 382,805 6,155,568 — 1,678,791 296,027 1,398,993 1,454,952 441,852 — Annual incentive 528,429 575,781 11,707,890 — 1,628,669 236,948 4,683,106 2,528,128 783,436 — Other 118,633 1,746,199 1,283,159 — 26,973 40,011 52,442 32,569 758,435 — Long-term employee benefits — — — — — — — — — — Share-based payments — — — — 72,571 9,224 (926,745) (780,642) — — Termination benefits — — — — — — — — — — Total remuneration expense 893,844 2,704,785 19,146,617 — 3,407,004 582,210 5,207,796 3,235,007 1,983,723 — * Total remuneration expense for 2020 excludes accrued payroll taxes of EUR9 million (US$10) recorded in ‘Selling, general and administrative expenses’ incurred by the Company pertaining to payments made to Ursula Burns, Kjell Johnson. |
Schedule of compensation paid to supervisory board members | The following table sets forth the total remuneration expense to the members of the Board of Directors members in 2020 and 2019 (gross amounts in whole euro and whole US dollar equivalents). For details on changes in Board of Directors, please refer to explanations below. Retainer Committees Other compensation Total In whole euros 2020 2019 2020 2019 2020 2019 2020 2019 Hans Holger Albrecht 204,167 — 72,917 — — — 277,084 — Guillaume Bacuvier 105,114 250,000 23,125 53,909 — — 128,239 303,909 Osama Bedier 308,333 250,000 68,750 25,000 — — 377,083 275,000 Ursula Burns 323,864 — — 5,952 — — 323,864 5,952 Mariano De Beer 204,167 — 87,500 — — — 291,667 — Peter Derby 204,167 — 87,500 — — — 291,667 — Mikhail Fridman 60,417 40,000 — — — — 60,417 40,000 Gennady Gazin 629,167 250,000 33,333 80,000 — — 662,500 330,000 Amos Genish 204,167 — 87,500 — — — 291,667 — Yaroslav Glazunov 13,350 — — — — — 13,350 — Andrei Gusev 60,417 40,000 — — 500,000 750,000 560,417 790,000 Gunnar Holt 308,333 250,000 118,750 69,643 — — 427,083 319,643 Sir Julian Horn-Smith 105,114 250,000 10,511 25,000 — — 115,625 275,000 Robert Jan van de Kraats 308,333 250,000 85,417 30,000 — — 393,750 280,000 Guy Laurence 104,167 250,000 12,500 30,000 — — 116,667 280,000 Alexander Pertsovsky 47,917 40,000 — — — — 47,917 40,000 Steve Pusey 204,167 — 58,333 — — — 262,500 — Kaan Terzioglu — 92,708 — 9,063 — — — 101,771 Total compensation 3,395,361 1,962,708 746,136 328,567 500,000 750,000 4,641,497 3,041,275 Retainer Committees Other compensation Total In whole US dollars 2020 2019 2020 2019 2020 2019 2020 2019 Hans Holger Albrecht 232,775 — 83,134 — — — 315,909 — Guillaume Bacuvier 119,843 279,799 26,365 60,335 — — 146,208 340,134 Osama Bedier 351,537 279,799 78,383 27,980 — — 429,920 307,779 Ursula Burns 369,244 — — 6,661 — — 369,244 6,661 Mariano De Beer 232,775 — 99,761 — — — 332,536 — Peter Derby 232,775 — 99,761 — — — 332,536 — Mikhail Fridman 68,883 44,768 — — — — 68,883 44,768 Gennady Gazin 717,326 279,799 38,004 89,536 — — 755,330 369,335 Amos Genish 232,775 — 99,761 — — — 332,536 — Yaroslav Glazunov 15,221 — — — — — 15,221 — Andrei Gusev 68,883 44,768 — — 570,060 839,396 638,943 884,164 Gunnar Holt 351,537 279,799 135,389 77,944 — — 486,926 357,743 Sir Julian Horn-Smith 119,843 279,799 11,984 27,980 — — 131,827 307,779 Robert Jan van de Kraats 351,537 279,799 97,386 33,576 — — 448,923 313,375 Guy Laurence 118,763 279,799 14,252 33,576 — — 133,015 313,375 Alexander Pertsovsky 54,631 44,768 — — — — 54,631 44,768 Steve Pusey 232,775 — 66,507 — — — 299,282 — Kaan Terzioglu — 103,758 — 10,143 — — — 113,901 Total compensation 3,871,123 2,196,655 850,687 367,731 570,060 839,396 5,291,870 3,403,782 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies That Relate To The Consolidated Financial Statements As A Whole | |
Disclosure of significant accounting judgments, estimates and assumptions | The sources of uncertainty identified by the Group are described together with the applicable Note, as follows: Significant accounting judgment / source of estimation uncertainty Described in Revenue recognition Note 3 Deferred tax assets and uncertain tax positions Note 8 Provisions and contingent liabilities Note 7 Impairment of non-current assets Note 10 Control over subsidiaries Note 13 Depreciation and amortization of non-current assets Note 11 and Note 12 Fair value of financial instruments Note 15 Measurement of lease liabilities Note 15 |
CONDENSED SEPARATE FINANCIAL _2
CONDENSED SEPARATE FINANCIAL INFORMATION OF VEON LTD (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed statement of financial position | Condensed statement of financial position: As of December 31 2020 2019 2018 Non-current assets Intangible assets 8 10 9 Tangible fixed assets 8 15 4 Financial fixed assets 138 1,152 3,590 Total non-current assets 154 1,177 3,603 Total current assets 320 393 435 Total assets 474 1,570 4,038 Equity 163 1,226 3,670 Total liabilities 311 344 368 Total equity and liabilities 474 1,570 4,038 |
Condensed income statement | Condensed income statement: for the years ended December 31 2020 2019 2018 Selling, general and administrative expenses (101) (160) (240) Other operating gains — 350 — Recharged expenses to group companies 3 21 47 Operating (loss) / profit (98) 211 (193) Finance income and (costs) (2) 6 4 Share in result of subsidiaries after tax (249) 404 771 Income tax — — (1) Total non-operating income and expenses (251) 410 774 Profit / (loss) for the year (349) 621 581 |
Condensed statements of comprehensive income | Condensed statements of comprehensive income: for the years ended December 31 2020 2019 2018 Total comprehensive (loss) / profit for the year, net of tax (800) 733 (138) |
Condensed statement of cash flows | Condensed statement of cash flows: for the years ended December 31 2020 2019 2018 Net cash flows from operating activities (13) (213) 23 Investing activities Receipt of dividends — — 571 Receipt of capital surplus from a subsidiary 317 650 — Other cash flows from investing activities — 101 (76) Net cash flows used in investing activities 317 751 495 Financing activities Proceeds from borrowings net of fees paid — — — Repayment of borrowings — — — Dividends paid to equity owners of the parent (260) (522) (505) Share capital issued and paid — — — Net cash flows generated from/(used in) financing activities (260) (522) (505) Net increase (decrease) in cash and cash equivalents 44 16 13 Net foreign exchange difference — — 1 Cash and cash equivalents at beginning of period 35 19 5 Cash and cash equivalents at end of period 79 35 19 |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) ₽ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2020USD ($) | Sep. 30, 2020RUB (₽) | Jul. 31, 2020USD ($) | Jul. 31, 2020RUB (₽) | Jun. 30, 2020USD ($) | Jun. 30, 2020RUB (₽) | Apr. 30, 2020USD ($) | |
General information | ||||||||||||
Foreign currency translation | $ 623 | $ (49) | $ 819 | |||||||||
Russia | ||||||||||||
General information | ||||||||||||
Impairment loss recognised in profit or loss | $ 723 | |||||||||||
Kyrgyzstan | ||||||||||||
General information | ||||||||||||
Impairment loss recognised in profit or loss | $ 64 | |||||||||||
PMCL (Pakistan Mobile Communications Ltd) | ||||||||||||
General information | ||||||||||||
Proportion Of Ownership Interests Sold | 15.00% | 15.00% | ||||||||||
CJSC “VEON Armenia” | ||||||||||||
General information | ||||||||||||
Consideration received | $ 51 | |||||||||||
VTB Bank bilateral term loan | ||||||||||||
General information | ||||||||||||
Facility amount | $ 422 | ₽ 30,000 | ||||||||||
RUB100bn bilateral facility | ||||||||||||
General information | ||||||||||||
Facility amount | ₽ | ₽ 100,000 | |||||||||||
RUB100bn bilateral facility | Veon Holdings B.v. | ||||||||||||
General information | ||||||||||||
Facility amount | $ 1,450 | |||||||||||
Undrawn borrowing facilities | 1,450 | 100,000 | ||||||||||
MTN unsecured notes | Veon Holdings B.v. | ||||||||||||
General information | ||||||||||||
Bonds issued | $ 135 | $ 1,250 | ₽ 10,000 | $ 288 | ₽ 20,000 | |||||||
MTN unsecured notes | Veon Holdings B.v. | Maximum | ||||||||||||
General information | ||||||||||||
Bonds issued | $ 6,500 |
SEGMENT INFORMATION - Reportabl
SEGMENT INFORMATION - Reportable Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Total revenue | $ 7,980 | $ 8,863 | $ 9,086 |
Adjusted EBITDA | 3,454 | 4,215 | 3,273 |
Capital expenditures excluding licenses | 1,889 | 1,741 | 1,415 |
Operating segments | Russia | |||
Disclosure of operating segments [line items] | |||
Total revenue | 3,819 | 4,481 | 4,654 |
Adjusted EBITDA | 1,504 | 1,957 | 1,677 |
Capital expenditures excluding licenses | 1,017 | 976 | 742 |
Operating segments | Pakistan | |||
Disclosure of operating segments [line items] | |||
Total revenue | 1,233 | 1,321 | 1,494 |
Adjusted EBITDA | 612 | 669 | 714 |
Capital expenditures excluding licenses | 249 | 213 | 199 |
Operating segments | Ukraine | |||
Disclosure of operating segments [line items] | |||
Total revenue | 933 | 870 | 688 |
Adjusted EBITDA | 630 | 572 | 387 |
Capital expenditures excluding licenses | 179 | 156 | 115 |
Operating segments | Kazakhstan | |||
Disclosure of operating segments [line items] | |||
Total revenue | 479 | 486 | 441 |
Adjusted EBITDA | 265 | 270 | 206 |
Capital expenditures excluding licenses | 119 | 108 | 66 |
Operating segments | Uzbekistan | |||
Disclosure of operating segments [line items] | |||
Total revenue | 198 | 258 | 315 |
Adjusted EBITDA | 68 | 136 | 136 |
Capital expenditures excluding licenses | 52 | 53 | 39 |
Operating segments | Algeria | |||
Disclosure of operating segments [line items] | |||
Total revenue | 689 | 775 | 813 |
Adjusted EBITDA | 302 | 354 | 363 |
Capital expenditures excluding licenses | 95 | 108 | 107 |
Operating segments | Bangladesh | |||
Disclosure of operating segments [line items] | |||
Total revenue | 537 | 537 | 521 |
Adjusted EBITDA | 228 | 222 | 183 |
Capital expenditures excluding licenses | 126 | 82 | 93 |
Operating segments | Other frontier markets | |||
Disclosure of operating segments [line items] | |||
Total revenue | 125 | 172 | 201 |
Adjusted EBITDA | 22 | 63 | 54 |
Capital expenditures excluding licenses | 33 | 38 | 43 |
HQ and eliminations | HQ and eliminations | |||
Disclosure of operating segments [line items] | |||
Total revenue | (33) | (37) | (41) |
Adjusted EBITDA | (177) | (28) | (447) |
Capital expenditures excluding licenses | $ 19 | $ 7 | $ 11 |
SEGMENT INFORMATION - Segments
SEGMENT INFORMATION - Segments Adjusted EBITDA (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [abstract] | |||
Profit / (loss) before tax from continuing operations | $ 26 | $ 1,181 | $ (248) |
Depreciation | 1,576 | 1,652 | 1,339 |
Amortization | 343 | 394 | 495 |
Impairment (loss) / reversal | 785 | 108 | 858 |
(Gain) / loss on disposal of non-current assets | 37 | 43 | 57 |
Gain / (loss) on disposal of subsidiaries | 78 | (1) | (30) |
Finance costs | 683 | 892 | 816 |
Finance income | (23) | (53) | (67) |
Other non-operating (gain) / loss | (111) | (21) | 68 |
Net foreign exchange (gain) / loss | 60 | 20 | (15) |
Adjusted EBITDA | $ 3,454 | $ 4,215 | $ 3,273 |
OPERATING REVENUE - Revenue (De
OPERATING REVENUE - Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | $ 392 | $ 465 | $ 427 |
Other revenue | 117 | 158 | 133 |
Revenue | 7,980 | 8,863 | 9,086 |
Russia | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 366 | 446 | 396 |
Other revenue | 13 | 11 | 13 |
Revenue | 3,819 | 4,481 | 4,654 |
Pakistan | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 11 | 6 | 8 |
Other revenue | 88 | 86 | 95 |
Revenue | 1,233 | 1,321 | 1,494 |
Ukraine | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Other revenue | 5 | 6 | 3 |
Revenue | 933 | 870 | 688 |
Kazakhstan | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 7 | 2 | 4 |
Other revenue | 2 | 39 | 1 |
Revenue | 479 | 486 | 441 |
Uzbekistan | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 0 | 0 |
Other revenue | 1 | 1 | 1 |
Revenue | 198 | 258 | 315 |
Algeria | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 4 | 2 | 4 |
Other revenue | 0 | 2 | 8 |
Revenue | 689 | 775 | 813 |
Bangladesh | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 0 | 1 | 5 |
Other revenue | 10 | 11 | 12 |
Revenue | 537 | 537 | 521 |
Other frontier markets | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from sale of goods | 4 | 8 | 10 |
Other revenue | 0 | 2 | 0 |
Revenue | 125 | 172 | 201 |
Mobile | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 6,791 | 7,554 | 7,809 |
Mobile | Russia | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 2,917 | 3,485 | 3,679 |
Mobile | Pakistan | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 1,134 | 1,229 | 1,391 |
Mobile | Ukraine | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 869 | 812 | 641 |
Mobile | Kazakhstan | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 392 | 379 | 363 |
Mobile | Uzbekistan | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 196 | 255 | 312 |
Mobile | Algeria | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 685 | 771 | 801 |
Mobile | Bangladesh | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 527 | 525 | 504 |
Mobile | Other frontier markets | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 102 | 135 | 159 |
Fixed | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 680 | 686 | 717 |
Fixed | Russia | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 523 | 539 | 566 |
Fixed | Pakistan | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 0 | 0 | 0 |
Fixed | Ukraine | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 59 | 52 | 44 |
Fixed | Kazakhstan | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 78 | 66 | 73 |
Fixed | Uzbekistan | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 1 | 2 | 2 |
Fixed | Algeria | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 0 | 0 | 0 |
Fixed | Bangladesh | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | 0 | 0 | 0 |
Fixed | Other frontier markets | Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue from rendering of services | $ 19 | $ 27 | $ 32 |
OPERATING REVENUE - Assets and
OPERATING REVENUE - Assets and liabilities arising from contracts with customers (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue [abstract] | ||
Receivables (billed) | $ 728 | $ 748 |
Contract assets (unbilled) | 41 | 38 |
Contract liabilities | (233) | (243) |
Customer acquisition costs | $ 128 | $ 101 |
SELLING, GENERAL AND ADMINIST_3
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) $ in Millions, ₨ in Billions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020PKR (₨) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Investments in subsidiaries | ||||
Network and IT costs | $ 797 | $ 791 | $ 1,176 | |
Personnel costs | 815 | 875 | 889 | |
Customer associated costs | 653 | 720 | 867 | |
Losses on receivables | 62 | 66 | 62 | |
Taxes, other than income taxes | 57 | 158 | 217 | |
Other | 257 | 355 | 486 | |
Total selling, general and administrative expenses | 2,641 | 2,965 | 3,697 | |
Rental expense | 425 | |||
Taxes, other than income taxes | 57 | $ 158 | $ 217 | |
Pakistan Mobile Communications Limited | ||||
Investments in subsidiaries | ||||
Taxes, other than income taxes | (68) | ₨ (11.2) | ||
Taxes, other than income taxes | (68) | (11.2) | ||
Selling, General, And Administrative Expense | Pakistan Mobile Communications Limited | ||||
Investments in subsidiaries | ||||
Taxes, other than income taxes | (52) | (8.6) | ||
Taxes, other than income taxes | $ (52) | ₨ (8.6) |
TRADE AND OTHER RECEIVABLES - D
TRADE AND OTHER RECEIVABLES - Detail of trade and other receivables (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Trade receivables | $ 571 | $ 610 |
Other receivable, net of expected credit losses allowance | 1 | 18 |
Total trade and other receivables | 572 | 628 |
Gross | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Trade receivables | 769 | 786 |
Expected credit losses | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | ||
Trade receivables | $ (198) | $ (176) |
TRADE AND OTHER RECEIVABLES - M
TRADE AND OTHER RECEIVABLES - Movements in the allowance for expected credit losses (Details) - Trade receivables - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Balance as of January 1 | $ 176 | $ 171 |
Accruals for expected credit losses | 62 | 66 |
Recoveries | (7) | (8) |
Accounts receivable written off | (16) | (31) |
Reclassification | 0 | (24) |
Foreign currency translation adjustment | (17) | 2 |
December 31 | $ 198 | $ 176 |
TRADE AND OTHER RECEIVABLES - A
TRADE AND OTHER RECEIVABLES - Aging of trade receivables (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Aging of trade receivables | ||
Trade receivables (including contract assets) | $ 470 | $ 317 |
Contract assets | ||
Aging of trade receivables | ||
Expected loss rate, % | 1.00% | 1.10% |
Trade receivables (including contract assets) | $ 41 | $ 38 |
Contract assets | Cost | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | 41 | 38 |
Contract assets | Expected credit losses | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | $ 0 | $ 0 |
Trade receivables | Current | ||
Aging of trade receivables | ||
Expected loss rate, % | 1.30% | 1.60% |
Trade receivables (including contract assets) | $ 462 | $ 439 |
Trade receivables | Less than 30 days | ||
Aging of trade receivables | ||
Expected loss rate, % | 13.60% | 4.90% |
Trade receivables (including contract assets) | $ 38 | $ 78 |
Trade receivables | Between 31 and 120 days | ||
Aging of trade receivables | ||
Expected loss rate, % | 40.70% | 36.50% |
Trade receivables (including contract assets) | $ 16 | $ 33 |
Trade receivables | Greater than 120 days | ||
Aging of trade receivables | ||
Expected loss rate, % | 92.60% | 86.90% |
Trade receivables (including contract assets) | $ 14 | $ 22 |
Trade receivables | Cost | Current | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | 468 | 446 |
Trade receivables | Cost | Less than 30 days | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | 44 | 82 |
Trade receivables | Cost | Between 31 and 120 days | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | 27 | 52 |
Trade receivables | Cost | Greater than 120 days | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | 189 | 168 |
Trade receivables | Expected credit losses | Current | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | (6) | (7) |
Trade receivables | Expected credit losses | Less than 30 days | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | (6) | (4) |
Trade receivables | Expected credit losses | Between 31 and 120 days | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | (11) | (19) |
Trade receivables | Expected credit losses | Greater than 120 days | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | (175) | (146) |
Trade receivables and contract assets | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | 571 | 610 |
Trade receivables and contract assets | Cost | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | 769 | 786 |
Trade receivables and contract assets | Expected credit losses | ||
Aging of trade receivables | ||
Trade receivables (including contract assets) | $ (198) | $ (176) |
OTHER ASSETS AND LIABILITIES -
OTHER ASSETS AND LIABILITIES - Other assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets And Liabilities | ||
Customer acquisition costs (see Note 3) | $ 128 | $ 101 |
Tax advances (non-income tax) | 33 | 30 |
Other non-financial assets | 18 | 32 |
Total other non-current assets | 179 | 163 |
Advances to suppliers | 91 | 111 |
Input value added tax | 159 | 158 |
Prepaid taxes | 43 | 45 |
Other assets | 42 | 40 |
Total other current assets | $ 335 | $ 354 |
OTHER ASSETS AND LIABILITIES _2
OTHER ASSETS AND LIABILITIES - Other liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other Assets And Liabilities | ||
Long-term deferred revenue (see Note 3) | $ 17 | $ 18 |
Other liabilities | 11 | 15 |
Total other non-current liabilities | 28 | 33 |
Taxes payable (non-income tax) | 372 | 411 |
Short-term deferred revenue (see Note 3) | 158 | 161 |
Customer advances (see Note 3) | 58 | 64 |
Other payments to authorities | 95 | 97 |
Due to employees | 168 | 197 |
Other liabilities | 32 | 82 |
Total other current liabilities | $ 883 | $ 1,012 |
PROVISIONS AND CONTINGENT LIA_3
PROVISIONS AND CONTINGENT LIABILITIES - Movement in provisions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of other provisions [line items] | ||
Balance at beginning of the year | $ 360 | $ 344 |
Arising during the year | 35 | 180 |
Utilized | (71) | (163) |
Unused amounts reversed | (19) | (19) |
Transfer and reclassification | 0 | 7 |
Discount rate adjustment and imputed interest (change in estimate) | 9 | 8 |
Translation adjustments and other | (22) | 3 |
Balance at end of the year | 292 | 360 |
Non-current | 141 | 138 |
Current | 151 | 222 |
Discount rate adjustment and imputed interest (change in estimate) | 9 | 8 |
Non-income tax provisions | ||
Disclosure of other provisions [line items] | ||
Balance at beginning of the year | 126 | 150 |
Arising during the year | 24 | 79 |
Utilized | (48) | (105) |
Unused amounts reversed | (10) | (4) |
Transfer and reclassification | 0 | 5 |
Discount rate adjustment and imputed interest (change in estimate) | 0 | 0 |
Translation adjustments and other | (6) | 1 |
Balance at end of the year | 86 | 126 |
Non-current | 0 | 0 |
Current | 86 | 126 |
Discount rate adjustment and imputed interest (change in estimate) | 0 | 0 |
Decommi-ssioning provision | ||
Disclosure of other provisions [line items] | ||
Balance at beginning of the year | 138 | 93 |
Arising during the year | 10 | 28 |
Utilized | (1) | (1) |
Unused amounts reversed | 0 | 0 |
Transfer and reclassification | 0 | 5 |
Discount rate adjustment and imputed interest (change in estimate) | 9 | 8 |
Translation adjustments and other | (15) | 5 |
Balance at end of the year | 141 | 138 |
Non-current | 141 | 138 |
Current | 0 | 0 |
Discount rate adjustment and imputed interest (change in estimate) | 9 | 8 |
Legal provision | ||
Disclosure of other provisions [line items] | ||
Balance at beginning of the year | 26 | 44 |
Arising during the year | 0 | 3 |
Utilized | 0 | (6) |
Unused amounts reversed | (3) | (15) |
Transfer and reclassification | 0 | (1) |
Discount rate adjustment and imputed interest (change in estimate) | 0 | 0 |
Translation adjustments and other | (1) | 1 |
Balance at end of the year | 22 | 26 |
Non-current | 0 | 0 |
Current | 22 | 26 |
Discount rate adjustment and imputed interest (change in estimate) | 0 | 0 |
Other provisions | ||
Disclosure of other provisions [line items] | ||
Balance at beginning of the year | 70 | 57 |
Arising during the year | 1 | 70 |
Utilized | (22) | (51) |
Unused amounts reversed | (6) | 0 |
Transfer and reclassification | 0 | (2) |
Discount rate adjustment and imputed interest (change in estimate) | 0 | 0 |
Translation adjustments and other | 0 | (4) |
Balance at end of the year | 43 | 70 |
Non-current | 0 | 0 |
Current | 43 | 70 |
Discount rate adjustment and imputed interest (change in estimate) | $ 0 | $ 0 |
PROVISIONS AND CONTINGENT LIA_4
PROVISIONS AND CONTINGENT LIABILITIES - Provisions narrative (Details) $ in Millions, ₨ in Billions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020PKR (₨) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure of other provisions [line items] | ||||
Reversal of non-income tax provision | $ (57) | $ (158) | $ (217) | |
Pakistan Mobile Communications Limited | ||||
Disclosure of other provisions [line items] | ||||
Reversal of non-income tax provision | 68 | ₨ 11.2 | ||
Selling, General, And Administrative Expense | Pakistan Mobile Communications Limited | ||||
Disclosure of other provisions [line items] | ||||
Reversal of non-income tax provision | $ 52 | ₨ 8.6 |
PROVISIONS AND CONTINGENT LIA_5
PROVISIONS AND CONTINGENT LIABILITIES - Contingent liabilities narrative (Details) ৳ in Millions, $ in Millions | Feb. 20, 2018 | Apr. 27, 2016action | Aug. 13, 2015 | May 18, 2015BDT (৳)sim_card | Apr. 01, 2012BDT (৳)sim_cardoperator | Jun. 30, 2020USD ($) | Aug. 31, 2013amendment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 20, 2017BDT (৳) | Nov. 20, 2017USD ($) | May 18, 2015USD ($) | Apr. 01, 2012USD ($) |
Disclosure of other provisions [line items] | |||||||||||||
Threshold value of other individual contingencies for disclosure | $ 5 | ||||||||||||
Total value of all other individual contingencies above threshold other than amounts already disclosed | 484 | $ 69 | |||||||||||
Global Telecom Holding | |||||||||||||
Disclosure of other provisions [line items] | |||||||||||||
Settlement amount paid to other party | $ 9 | ||||||||||||
Gains on litigation settlements | $ 41 | ||||||||||||
VEON - Securities Class Action | |||||||||||||
Disclosure of other provisions [line items] | |||||||||||||
Number of class action lawsuits filed against the company | action | 2 | ||||||||||||
VAT on Replacement SIMs | Banglalink Digital Communications Limited | |||||||||||||
Disclosure of other provisions [line items] | |||||||||||||
Legal provisions | $ 11 | $ 11 | |||||||||||
Sale of Telecel Global Limited | |||||||||||||
Disclosure of other provisions [line items] | |||||||||||||
Number of amendments to SPA | amendment | 3 | ||||||||||||
NBR | VAT on Replacement SIMs | Banglalink Digital Communications Limited | |||||||||||||
Disclosure of other provisions [line items] | |||||||||||||
Unpaid SIM tax | ৳ 7,740 | $ 91 | |||||||||||
Number of random SIM cards purchased by NBR | sim_card | 5 | ||||||||||||
Total number of SIM cards issued | sim_card | 7,021,834 | ||||||||||||
Number of other operators that received notices | operator | 3 | ||||||||||||
Percentage of exposure of the original demand | 8.50% | ||||||||||||
Assessed SIM tax liability | ৳ 7,620 | $ 90 | |||||||||||
LTU | VAT on Replacement SIMs | Banglalink Digital Communications Limited | |||||||||||||
Disclosure of other provisions [line items] | |||||||||||||
Unpaid SIM tax | ৳ 1,690 | $ 20 | |||||||||||
Number of random SIM cards purchased by Review Committee | sim_card | 1,200 | ||||||||||||
Percentage of incorrectly registered SIM cards | 4.83% | ||||||||||||
Number of SIM cards incorrectly issued | sim_card | 6,887,633 | ||||||||||||
SIM tax payable on incorrectly issued SIM cards | ৳ 5,320 | $ 63 | |||||||||||
Percentage of SIM tax deposited | 10.00% | 10.00% |
INCOME TAXES - Income tax payab
INCOME TAXES - Income tax payable (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Major components of tax expense (income) [abstract] | ||
Current tax payable | $ 30 | $ 36 |
Uncertain tax provisions | 145 | 66 |
Total income tax payable | $ 175 | $ 102 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income taxes | ||
Reduction in uncertain tax provisions | $ 10 | $ 51 |
Reduction in uncertain tax provisions, gross | 155 | 117 |
Current and non-current income tax assets | 73 | 16 |
Non-recognized losses | 9,212 | 9,423 |
Deferred tax liabilities | 127 | 141 |
Pakistan Mobile Communications Limited | ||
Income taxes | ||
Estimated financial effect of contingent liabilities | 112 | |
Luxembourg | ||
Income taxes | ||
Non-recognized losses | 6,285 | 6,052 |
Netherlands | ||
Income taxes | ||
Non-recognized losses | 2,659 | 2,937 |
Russian, Algerian and Pakistan | ||
Income taxes | ||
Deferred tax liabilities | 60 | 52 |
Foreign subsidiaries outside Netherlands | ||
Income taxes | ||
Undistributed earnings of VEON's foreign subsidiaries | $ 5,241 | $ 6,194 |
INCOME TAXES - Income tax expen
INCOME TAXES - Income tax expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income taxes | |||
Current year | $ 404 | $ 495 | $ 477 |
Adjustments in respect of previous years | (1) | 5 | 9 |
Total current income taxes | 403 | 500 | 486 |
Deferred income taxes | |||
Movement of temporary differences and losses | (72) | (36) | (152) |
Changes in tax rates | 0 | (1) | 6 |
Changes in recognized deferred tax assets | 2 | 39 | 0 |
Adjustments in respect of previous years | 9 | 3 | 28 |
Other | 0 | (7) | 1 |
Total deferred tax expense / (benefit) | (61) | (2) | (117) |
Income tax expense | $ 342 | $ 498 | $ 369 |
INCOME TAXES - Reconciliation b
INCOME TAXES - Reconciliation between statutory and effective income tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective income tax rate reconciliation, difference due to tax effects | |||
Profit / (loss) before tax from continuing operations | $ 26 | $ 1,181 | $ (248) |
Income tax benefit / (expense) at statutory tax rate (25%) | (7) | (295) | 62 |
Different tax rates in different jurisdictions | (28) | 20 | 89 |
Non-deductible expenses | (210) | (90) | (120) |
Non-taxable income | 37 | 5 | 49 |
Adjustments in respect of previous years | (3) | (49) | (39) |
Movements in (un)recognized deferred tax assets | (89) | (13) | (354) |
Withholding taxes | (56) | (50) | 45 |
Uncertain tax positions | (1) | 6 | (17) |
Change in income tax rate | 0 | 1 | (6) |
Other | (15) | 33 | 78 |
Income tax benefit / (expense) | $ (342) | $ (498) | $ (369) |
Effective tax rate | 1315.40% | 42.20% | (148.80%) |
Netherlands | |||
Effective income tax rate reconciliation, difference due to tax effects | |||
Movements in (un)recognized deferred tax assets | $ (101) | $ (42) | $ (147) |
Global Telecom Holding S.A.E | |||
Effective income tax rate reconciliation, difference due to tax effects | |||
Movements in (un)recognized deferred tax assets | $ 0 | (43) | $ (213) |
Egyptian Tax Authority | Global Telecom Holding S.A.E | |||
Effective income tax rate reconciliation, difference due to tax effects | |||
Other | $ 29 |
INCOME TAXES - Deferred taxes (
INCOME TAXES - Deferred taxes (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets and liabilities | |||
Deferred tax assets | $ 186 | $ 134 | |
Deferred tax liabilities | (127) | (141) | |
Net deferred tax assets | 59 | $ 17 | |
Net deferred tax liabilities | $ 59 | $ (7) |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance - liabilities | $ (7) | |
Opening balance - assets | $ 17 | |
Net income statement movement | 61 | (2) |
Other movements | 5 | (22) |
Ending balance - liabilities | 59 | (7) |
Ending balance - assets | 59 | |
Property and equipment | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance - liabilities | (288) | (275) |
Net income statement movement | (23) | 5 |
Other movements | 37 | (18) |
Ending balance - liabilities | (274) | (288) |
Intangible assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance - liabilities | (38) | (60) |
Net income statement movement | 19 | 22 |
Other movements | 5 | 0 |
Ending balance - liabilities | (14) | (38) |
Trade receivables | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance - assets | 47 | 32 |
Net income statement movement | 1 | 16 |
Other movements | (5) | (1) |
Ending balance - assets | 43 | 47 |
Provisions | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance - assets | 31 | 30 |
Net income statement movement | 1 | 2 |
Other movements | (4) | (1) |
Ending balance - assets | 28 | 31 |
Accounts payable | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance - assets | 156 | 113 |
Net income statement movement | 7 | 11 |
Other movements | (23) | 32 |
Ending balance - assets | 140 | 156 |
Withholding tax on undistributed earnings | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance - liabilities | (52) | (50) |
Net income statement movement | (8) | (2) |
Other movements | 0 | 0 |
Ending balance - liabilities | (60) | (52) |
Tax losses and other balances carried forwards | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance - assets | 2,026 | 2,173 |
Net income statement movement | 113 | (68) |
Other movements | 82 | (79) |
Ending balance - assets | 2,221 | 2,026 |
Non-recognized deferred tax assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance - liabilities | (1,894) | (1,955) |
Net income statement movement | (46) | 0 |
Other movements | (85) | 61 |
Ending balance - liabilities | (2,025) | (1,894) |
Other | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Opening balance - assets | 5 | 9 |
Net income statement movement | (3) | 12 |
Other movements | (2) | (16) |
Ending balance - assets | $ 0 | $ 5 |
INCOME TAXES - Tax losses year
INCOME TAXES - Tax losses year of expiration (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income taxes | ||
Recognized losses | $ (279) | $ (280) |
Recognized DTA | 76 | 73 |
Non-recognized losses | (9,212) | (9,423) |
Non-recognized DTA | 1,911 | 1,894 |
Recognized credits | (121) | (59) |
Recognized DTA | 121 | 59 |
Non-recognized credits | (492) | (143) |
Non-recognized DTA | 115 | 31 |
0-5 years | ||
Income taxes | ||
Recognized losses | 0 | 0 |
Recognized DTA | 0 | 0 |
Non-recognized losses | (1,546) | (1,292) |
Non-recognized DTA | 387 | 279 |
Recognized credits | (19) | (13) |
Recognized DTA | 19 | 13 |
Non-recognized credits | 0 | 0 |
Non-recognized DTA | 0 | 0 |
6-10 years | ||
Income taxes | ||
Recognized losses | (107) | 0 |
Recognized DTA | 27 | 0 |
Non-recognized losses | (1,006) | (1,645) |
Non-recognized DTA | 252 | 357 |
Recognized credits | (102) | (46) |
Recognized DTA | 102 | 46 |
Non-recognized credits | 0 | 0 |
Non-recognized DTA | 0 | 0 |
More than 10 years | ||
Income taxes | ||
Recognized losses | 0 | 0 |
Recognized DTA | 0 | 0 |
Non-recognized losses | 0 | 0 |
Non-recognized DTA | 0 | 0 |
Recognized credits | 0 | 0 |
Recognized DTA | 0 | 0 |
Non-recognized credits | 0 | 0 |
Non-recognized DTA | 0 | 0 |
Indefinite | ||
Income taxes | ||
Recognized losses | (172) | (280) |
Recognized DTA | 49 | 73 |
Non-recognized losses | (6,660) | (6,486) |
Non-recognized DTA | 1,272 | 1,258 |
Recognized credits | 0 | 0 |
Recognized DTA | 0 | 0 |
Non-recognized credits | (492) | (143) |
Non-recognized DTA | $ 115 | $ 31 |
SIGNIFICANT TRANSACTIONS - Sign
SIGNIFICANT TRANSACTIONS - Significant transactions in 2020 (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of subsidiaries [abstract] | ||||
Assets | $ 14,551 | $ 16,059 | ||
Reclassification adjustments on exchange differences on translation, net of tax | (96) | 0 | $ 79 | |
Loss on disposals of subsidiaries | $ (78) | $ 1 | $ 30 | |
CJSC “VEON Armenia” | ||||
Disclosure of subsidiaries [abstract] | ||||
Consideration received | $ 51 | |||
Assets | 33 | |||
Reclassification adjustments on exchange differences on translation, net of tax | 96 | |||
Loss on disposals of subsidiaries | $ (78) |
SIGNIFICANT TRANSACTIONS - Si_2
SIGNIFICANT TRANSACTIONS - Significant Transactions in 2019 (Details) ج.م. / shares in Units, ج.م. in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Aug. 31, 2019USD ($)shares | Aug. 31, 2019EGP (ج.م.)shares | Apr. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2020 | Dec. 31, 2019USD ($) | Aug. 31, 2019ج.م. / shares | |
Investments in subsidiaries | |||||||
Changes in ownership interest in a subsidiary that do not result in a loss of control | $ (608) | ||||||
Ericsson | |||||||
Investments in subsidiaries | |||||||
Other operating gains | $ 350 | ||||||
Other capital reserves | |||||||
Investments in subsidiaries | |||||||
Changes in ownership interest in a subsidiary that do not result in a loss of control | $ (2,594) | ||||||
Global Telecom Holding S.A.E | |||||||
Investments in subsidiaries | |||||||
Proportion of ownership interest in subsidiary | 99.60% | 99.54% | |||||
Book values of material NCIs | $ 1,986 | ||||||
Cost of acquisition of non-controlling interest | 608 | ||||||
Global Telecom Holding S.A.E | Other capital reserves | |||||||
Investments in subsidiaries | |||||||
Changes in ownership interest in a subsidiary that do not result in a loss of control | $ (2,594) | ||||||
Global Telecom Holding S.A.E | |||||||
Investments in subsidiaries | |||||||
Number of shares acquired (in shares) | shares | 1,914,322,110 | 1,914,322,110 | |||||
Percentage of voting equity interests acquired | 40.55% | ||||||
Consideration paid | $ 587 | ج.م. 9,725 | |||||
Mandatory tender offer, price per share (in EGP per share) | ج.م. / shares | ج.م. 5.08 | ||||||
Kazakhstan | Kcell Joint Stock Company | |||||||
Investments in subsidiaries | |||||||
Settlement received due to termination of network sharing agreement | $ 38 |
SIGNIFICANT TRANSACTIONS - Sale
SIGNIFICANT TRANSACTIONS - Sale of Italy Joint Venture (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Jul. 31, 2018 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Disclosure of joint ventures [line items] | ||||||
Gain / (loss) on disposal of discontinued operations | $ 0 | $ 0 | $ 1,279 | |||
Italy Joint Venture | Discontinued operations | ||||||
Disclosure of joint ventures [line items] | ||||||
Proportion of ownership interest in joint venture | 50.00% | |||||
Cash consideration received | $ 2,830 | € 2,450 | ||||
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 |
IMPAIRMENT OF ASSETS - Impairme
IMPAIRMENT OF ASSETS - Impairment losses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impairment losses | ||||
Impairment loss | $ 785 | $ 108 | $ 858 | |
Property and equipment | ||||
Impairment losses | ||||
Impairment loss | 43 | 51 | 335 | |
Intangible assets | ||||
Impairment losses | ||||
Impairment loss | 8 | 3 | 299 | |
Goodwill | ||||
Impairment losses | ||||
Impairment loss | 723 | 54 | 224 | |
Other | ||||
Impairment losses | ||||
Impairment loss | 11 | |||
Russia | ||||
Impairment losses | ||||
Impairment loss | 723 | |||
Recoverable amount | $ 3,001 | |||
Russia | Property and equipment | ||||
Impairment losses | ||||
Impairment loss | 0 | |||
Russia | Intangible assets | ||||
Impairment losses | ||||
Impairment loss | 0 | |||
Russia | Goodwill | ||||
Impairment losses | ||||
Impairment loss | 723 | |||
Russia | Other | ||||
Impairment losses | ||||
Impairment loss | 0 | |||
Kyrgyzstan | ||||
Impairment losses | ||||
Impairment loss | $ 64 | 64 | 90 | 74 |
Kyrgyzstan | Property and equipment | ||||
Impairment losses | ||||
Impairment loss | 38 | 33 | 0 | |
Kyrgyzstan | Intangible assets | ||||
Impairment losses | ||||
Impairment loss | 8 | 3 | 0 | |
Kyrgyzstan | Goodwill | ||||
Impairment losses | ||||
Impairment loss | 0 | 54 | 74 | |
Kyrgyzstan | Other | ||||
Impairment losses | ||||
Impairment loss | 18 | |||
Other | ||||
Impairment losses | ||||
Impairment loss | (2) | 18 | 77 | |
Other | Property and equipment | ||||
Impairment losses | ||||
Impairment loss | 5 | 18 | 37 | |
Other | Intangible assets | ||||
Impairment losses | ||||
Impairment loss | 0 | 0 | 40 | |
Other | Goodwill | ||||
Impairment losses | ||||
Impairment loss | 0 | $ 0 | 0 | |
Other | Other | ||||
Impairment losses | ||||
Impairment loss | $ (7) | |||
Algeria | ||||
Impairment losses | ||||
Impairment loss | 125 | |||
Algeria | Property and equipment | ||||
Impairment losses | ||||
Impairment loss | 0 | |||
Algeria | Intangible assets | ||||
Impairment losses | ||||
Impairment loss | 0 | |||
Algeria | Goodwill | ||||
Impairment losses | ||||
Impairment loss | 125 | |||
Armenia | ||||
Impairment losses | ||||
Impairment loss | 81 | |||
Armenia | Property and equipment | ||||
Impairment losses | ||||
Impairment loss | 46 | |||
Armenia | Intangible assets | ||||
Impairment losses | ||||
Impairment loss | 10 | |||
Armenia | Goodwill | ||||
Impairment losses | ||||
Impairment loss | 25 | |||
Bangladesh | ||||
Impairment losses | ||||
Impairment loss | 451 | |||
Bangladesh | Property and equipment | ||||
Impairment losses | ||||
Impairment loss | 221 | |||
Bangladesh | Intangible assets | ||||
Impairment losses | ||||
Impairment loss | 230 | |||
Bangladesh | Goodwill | ||||
Impairment losses | ||||
Impairment loss | 0 | |||
Georgia | ||||
Impairment losses | ||||
Impairment loss | 50 | |||
Georgia | Property and equipment | ||||
Impairment losses | ||||
Impairment loss | 31 | |||
Georgia | Intangible assets | ||||
Impairment losses | ||||
Impairment loss | 19 | |||
Georgia | Goodwill | ||||
Impairment losses | ||||
Impairment loss | $ 0 |
IMPAIRMENT OF ASSETS - Key assu
IMPAIRMENT OF ASSETS - Key assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Key assumptions for determining the recoverable amount | |||
Budget and forecast period | 5 years | ||
Maturity period for an United States treasury bond | 20 years | ||
Median historical capital structure term | 5 years | ||
Cash flow forecasts for license and spectrum payments term | 5 years | ||
Russia | |||
Key assumptions for determining the recoverable amount | |||
Discount rate | 10.10% | 9.10% | 10.30% |
Average annual revenue growth rate during forecast period | 4.30% | 1.40% | 1.10% |
Terminal growth rate | 1.80% | 1.60% | 1.30% |
Average operating margin during the forecast period | 31.20% | 34.70% | 34.60% |
Terminal period operating margin | 35.70% | 34.50% | 34.70% |
Average CAPEX as a percentage of revenue during the forecast period | 27.90% | 19.90% | 19.80% |
Terminal period CAPEX as a percentage of revenue | 21.00% | 18.50% | 15.00% |
Algeria | |||
Key assumptions for determining the recoverable amount | |||
Discount rate | 11.60% | 10.40% | 11.10% |
Average annual revenue growth rate during forecast period | 4.30% | 1.00% | 0.70% |
Terminal growth rate | 1.00% | 1.00% | 0.90% |
Average operating margin during the forecast period | 39.90% | 42.60% | 44.00% |
Terminal period operating margin | 40.40% | 43.10% | 45.00% |
Average CAPEX as a percentage of revenue during the forecast period | 15.20% | 12.50% | 15.10% |
Terminal period CAPEX as a percentage of revenue | 14.00% | 12.00% | 14.00% |
Pakistan | |||
Key assumptions for determining the recoverable amount | |||
Discount rate | 18.20% | 14.50% | 14.40% |
Average annual revenue growth rate during forecast period | 9.70% | 3.90% | 3.50% |
Terminal growth rate | 5.80% | 2.70% | 4.00% |
Average operating margin during the forecast period | 42.00% | 47.30% | 47.90% |
Terminal period operating margin | 44.60% | 47.30% | 49.10% |
Average CAPEX as a percentage of revenue during the forecast period | 19.60% | 17.20% | 16.70% |
Terminal period CAPEX as a percentage of revenue | 18.90% | 17.10% | 14.00% |
Bangladesh | |||
Key assumptions for determining the recoverable amount | |||
Discount rate | 0.00% | 0.00% | 12.20% |
Average annual revenue growth rate during forecast period | 0.00% | 0.00% | 0.60% |
Terminal growth rate | 0.00% | 0.00% | 4.00% |
Average operating margin during the forecast period | 0.00% | 0.00% | 35.40% |
Terminal period operating margin | 0.00% | 0.00% | 35.70% |
Average CAPEX as a percentage of revenue during the forecast period | 0.00% | 0.00% | 14.90% |
Terminal period CAPEX as a percentage of revenue | 0.00% | 0.00% | 12.00% |
Kazakhstan | |||
Key assumptions for determining the recoverable amount | |||
Discount rate | 10.30% | 9.20% | 8.40% |
Average annual revenue growth rate during forecast period | 5.30% | 5.30% | 2.80% |
Terminal growth rate | 3.10% | 3.30% | 1.10% |
Average operating margin during the forecast period | 49.50% | 49.90% | 46.50% |
Terminal period operating margin | 50.00% | 50.10% | 46.70% |
Average CAPEX as a percentage of revenue during the forecast period | 19.80% | 20.00% | 17.70% |
Terminal period CAPEX as a percentage of revenue | 19.00% | 19.50% | 17.00% |
Kyrgyzstan | |||
Key assumptions for determining the recoverable amount | |||
Discount rate | 0.00% | 14.10% | 14.80% |
Average annual revenue growth rate during forecast period | 0.00% | 1.60% | 2.80% |
Terminal growth rate | 0.00% | 5.00% | 5.00% |
Average operating margin during the forecast period | 0.00% | 31.40% | 39.90% |
Terminal period operating margin | 0.00% | 33.00% | 39.00% |
Average CAPEX as a percentage of revenue during the forecast period | 0.00% | 26.90% | 17.20% |
Terminal period CAPEX as a percentage of revenue | 0.00% | 20.00% | 15.00% |
Uzbekistan | |||
Key assumptions for determining the recoverable amount | |||
Discount rate | 13.80% | 14.50% | 13.10% |
Average annual revenue growth rate during forecast period | 3.20% | 4.10% | 5.50% |
Terminal growth rate | 5.10% | 6.00% | 6.30% |
Average operating margin during the forecast period | 34.00% | 51.40% | 43.90% |
Terminal period operating margin | 34.00% | 52.40% | 44.10% |
Average CAPEX as a percentage of revenue during the forecast period | 21.40% | 19.40% | 16.20% |
Terminal period CAPEX as a percentage of revenue | 21.00% | 20.10% | 16.20% |
Armenia | |||
Key assumptions for determining the recoverable amount | |||
Discount rate | 0.00% | 0.00% | 12.50% |
Average annual revenue growth rate during forecast period | 0.00% | 0.00% | 0.20% |
Terminal growth rate | 0.00% | 0.00% | 0.80% |
Average operating margin during the forecast period | 0.00% | 0.00% | 23.60% |
Terminal period operating margin | 0.00% | 0.00% | 23.40% |
Average CAPEX as a percentage of revenue during the forecast period | 0.00% | 0.00% | 21.00% |
Terminal period CAPEX as a percentage of revenue | 0.00% | 0.00% | 14.00% |
Georgia | |||
Key assumptions for determining the recoverable amount | |||
Discount rate | 0.00% | 0.00% | 10.60% |
Average annual revenue growth rate during forecast period | 0.00% | 0.00% | 2.10% |
Terminal growth rate | 0.00% | 0.00% | 3.00% |
Average operating margin during the forecast period | 0.00% | 0.00% | 24.50% |
Terminal period operating margin | 0.00% | 0.00% | 25.60% |
Average CAPEX as a percentage of revenue during the forecast period | 0.00% | 0.00% | 23.80% |
Terminal period CAPEX as a percentage of revenue | 0.00% | 0.00% | 14.00% |
IMPAIRMENT OF ASSETS - Sensitiv
IMPAIRMENT OF ASSETS - Sensitivity to changes in assumptions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Russia | |
Sensitivity to changes in assumptions | |
Discount rate | 10.10% |
Discount Rate 1% increase | 11.10% |
Breakeven discount rate | 10.10% |
Reasonably possible 1% change in discount rate, amount | $ (473) |
Growth rate | 3.90% |
Growth rate 1% decrease | 2.90% |
Breakeven growth rate | 3.90% |
Reasonably possible 1% change in average growth rate, amount | $ (250) |
Combined operating margin | 32.00% |
Combined operating margin 1% decrease | 31.00% |
Breakeven average operating margin | 32.00% |
Reasonably possible 1% change in average operating margin, amount | $ (375) |
Combined CAPEX % | 26.80% |
Combined CAPEX percentage 1% increase | 27.80% |
Breakeven average CAPEX revenue rate | 26.80% |
Reasonably possible 1% change in average CAPEX as percentage of revenue, amount | $ (380) |
Russia | Discount rate, measurement input | |
Sensitivity to changes in assumptions | |
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0 |
Russia | Annual revenue growth rate | |
Sensitivity to changes in assumptions | |
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0 |
Russia | Average operating margin | |
Sensitivity to changes in assumptions | |
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0 |
Russia | Average CAPEX revenue rate | |
Sensitivity to changes in assumptions | |
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0 |
Algeria | |
Sensitivity to changes in assumptions | |
Discount rate | 11.60% |
Discount Rate 1% increase | 12.60% |
Breakeven discount rate | 12.20% |
Reasonably possible 1% change in discount rate, amount | $ (44) |
Growth rate | 3.80% |
Growth rate 1% decrease | 2.80% |
Breakeven growth rate | 2.90% |
Reasonably possible 1% change in average growth rate, amount | $ (12) |
Combined operating margin | 40.00% |
Combined operating margin 1% decrease | 39.00% |
Breakeven average operating margin | 38.70% |
Reasonably possible 1% change in average operating margin, amount | $ 19 |
Combined CAPEX % | 15.00% |
Combined CAPEX percentage 1% increase | 16.00% |
Breakeven average CAPEX revenue rate | 16.40% |
Reasonably possible 1% change in average CAPEX as percentage of revenue, amount | $ 22 |
Algeria | Discount rate, measurement input | |
Sensitivity to changes in assumptions | |
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0.006 |
Algeria | Annual revenue growth rate | |
Sensitivity to changes in assumptions | |
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | (0.009) |
Algeria | Average operating margin | |
Sensitivity to changes in assumptions | |
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | (0.013) |
Algeria | Average CAPEX revenue rate | |
Sensitivity to changes in assumptions | |
Amount by which value assigned to key assumption must change in order for unit's recoverable amount to be equal to carrying amount | 0.014 |
PROPERTY AND EQUIPMENT - Moveme
PROPERTY AND EQUIPMENT - Movement in property and equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at beginning of period | $ 7,340 | |
Impairment | (43) | $ (51) |
Property and equipment at end of period | 6,879 | 7,340 |
Right-of-use assets at beginning of period | 1,985 | 2,023 |
Additions | 446 | 299 |
Disposals | (14) | (35) |
Depreciation charge for the year | (416) | (448) |
Impairment | (5) | 0 |
Transfers | (2) | 0 |
Translation adjustment | (260) | 146 |
Right-of-use assets at end of period | 1,734 | 1,985 |
Property, plant and equipment and right-of-use assets at beginning of period | 7,340 | 6,884 |
Additions | 2,153 | 1,840 |
Disposals | (91) | (85) |
Depreciation charge for the year | (1,576) | (1,652) |
Impairment | (43) | (51) |
Transfers | 0 | 0 |
Translation adjustment | (904) | 404 |
Property, plant and equipment and right-of-use assets at end of period | 6,879 | 7,340 |
Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Right-of-use assets at end of period | 2,526 | |
Property, plant and equipment and right-of-use assets at end of period | 15,813 | |
Accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Right-of-use assets at end of period | (792) | |
Property, plant and equipment and right-of-use assets at end of period | (8,934) | |
Telecommunications equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at beginning of period | 4,306 | 3,937 |
Additions | 47 | 80 |
Disposals | (50) | (36) |
Depreciation charge for the year | (1,009) | (1,032) |
Impairment | (28) | (30) |
Transfers | 1,282 | 1,210 |
Translation adjustment | (498) | 177 |
Property and equipment at end of period | 4,050 | 4,306 |
Telecommunications equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at end of period | 10,893 | |
Telecommunications equipment | Accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at end of period | (6,843) | |
Land, buildings and constructions | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at beginning of period | 216 | 202 |
Additions | 2 | 0 |
Disposals | (5) | (1) |
Depreciation charge for the year | (28) | (33) |
Impairment | (1) | (1) |
Transfers | 5 | 29 |
Translation adjustment | (30) | 20 |
Property and equipment at end of period | 159 | 216 |
Land, buildings and constructions | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at end of period | 377 | |
Land, buildings and constructions | Accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at end of period | (218) | |
Office and other equipment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at beginning of period | 417 | 393 |
Additions | 32 | 8 |
Disposals | (10) | (6) |
Depreciation charge for the year | (123) | (139) |
Impairment | (2) | (3) |
Transfers | 111 | 131 |
Translation adjustment | (57) | 33 |
Property and equipment at end of period | 368 | 417 |
Office and other equipment | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at end of period | 1,330 | |
Office and other equipment | Accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at end of period | (962) | |
Equipment not installed and assets under construction | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at beginning of period | 416 | 329 |
Additions | 1,626 | 1,453 |
Disposals | (12) | (7) |
Depreciation charge for the year | 0 | 0 |
Impairment | (7) | (17) |
Transfers | (1,396) | (1,370) |
Translation adjustment | (59) | 28 |
Property and equipment at end of period | 568 | $ 416 |
Equipment not installed and assets under construction | Cost | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at end of period | 687 | |
Equipment not installed and assets under construction | Accumulated depreciation and impairment | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Property and equipment at end of period | $ (119) |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Impairment | $ 43 | $ 51 |
Additions | 446 | 299 |
Acquired property and equipment, not yet paid | 601 | 480 |
Property plant and equipment pledged as security for bank borrowings | 865 | $ 652 |
Russia And Ukraine | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Additions | $ 181 |
PROPERTY AND EQUIPMENT - Move_2
PROPERTY AND EQUIPMENT - Movement in right-of-use assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at beginning of period | $ 1,985 | $ 2,023 |
Additions | 446 | 299 |
Disposals | (14) | (35) |
Depreciation charge for the year | (416) | (448) |
Impairment | (5) | 0 |
Transfers | (2) | 0 |
Translation adjustment | (260) | 146 |
Right-of-use assets at end of period | 1,734 | 1,985 |
Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at end of period | 2,526 | |
Accumulated depreciation and impairment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at end of period | (792) | |
Telecommunications equipment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at beginning of period | 1,638 | 1,601 |
Additions | 339 | 236 |
Disposals | (14) | (27) |
Depreciation charge for the year | (309) | (306) |
Impairment | (1) | 0 |
Transfers | 0 | 18 |
Translation adjustment | (217) | 116 |
Right-of-use assets at end of period | 1,436 | 1,638 |
Telecommunications equipment | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at end of period | 2,021 | |
Telecommunications equipment | Accumulated depreciation and impairment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at end of period | (585) | |
Land, buildings and constructions | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at beginning of period | 344 | 415 |
Additions | 102 | 63 |
Disposals | 0 | (6) |
Depreciation charge for the year | (105) | (140) |
Impairment | (4) | 0 |
Transfers | (2) | (18) |
Translation adjustment | (42) | 30 |
Right-of-use assets at end of period | 293 | 344 |
Land, buildings and constructions | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at end of period | 496 | |
Land, buildings and constructions | Accumulated depreciation and impairment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at end of period | (203) | |
Office and other equipment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at beginning of period | 3 | 7 |
Additions | 5 | 0 |
Disposals | 0 | (2) |
Depreciation charge for the year | (2) | (2) |
Impairment | 0 | 0 |
Transfers | 0 | 0 |
Translation adjustment | (1) | 0 |
Right-of-use assets at end of period | 5 | $ 3 |
Office and other equipment | Cost | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at end of period | 9 | |
Office and other equipment | Accumulated depreciation and impairment | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Right-of-use assets at end of period | $ (4) |
PROPERTY AND EQUIPMENT - Commit
PROPERTY AND EQUIPMENT - Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of capital commitments [line items] | ||
Total commitments | $ 766 | $ 696 |
Less than 1 year | ||
Disclosure of capital commitments [line items] | ||
Total commitments | 747 | 677 |
Between 1 and 5 years | ||
Disclosure of capital commitments [line items] | ||
Total commitments | $ 19 | $ 19 |
PROPERTY AND EQUIPMENT - Useful
PROPERTY AND EQUIPMENT - Useful life of property and equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | Telecommunications equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
Minimum | Buildings and constructions | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 10 years |
Minimum | Office and other equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 3 years |
Maximum | Telecommunications equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 20 years |
Maximum | Buildings and constructions | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 50 years |
Maximum | Office and other equipment | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life | 10 years |
INTANGIBLE ASSETS - Summary of
INTANGIBLE ASSETS - Summary of the movement in the net book value of intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at beginning of the period | $ 5,688 | $ 5,655 |
Additions | 267 | 239 |
Disposals | (6) | (2) |
Amortization charge for the year | (343) | (394) |
Impairment | (731) | (57) |
Transfer | 0 | 0 |
Translation adjustment | (723) | 247 |
Balance at end of the period | 4,152 | 5,688 |
Acquired intangible assets, not yet paid | 56 | 49 |
Telecommunication licenses, frequencies & permissions | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at beginning of the period | 1,100 | 1,195 |
Additions | 53 | 50 |
Disposals | 0 | 0 |
Amortization charge for the year | (139) | (159) |
Impairment | (5) | (3) |
Transfer | 0 | 0 |
Translation adjustment | (88) | 17 |
Balance at end of the period | 921 | 1,100 |
Software | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at beginning of the period | 316 | 264 |
Additions | 188 | 177 |
Disposals | (6) | 0 |
Amortization charge for the year | (159) | (155) |
Impairment | (3) | 0 |
Transfer | 6 | 8 |
Translation adjustment | (41) | 22 |
Balance at end of the period | 301 | 316 |
Brands and trademarks | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at beginning of the period | 149 | 178 |
Additions | 3 | 0 |
Disposals | 0 | 0 |
Amortization charge for the year | (23) | (30) |
Impairment | 0 | 0 |
Transfer | 0 | 0 |
Translation adjustment | (12) | 1 |
Balance at end of the period | 117 | 149 |
Customer relationships | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at beginning of the period | 142 | 177 |
Additions | 5 | 0 |
Disposals | 0 | 0 |
Amortization charge for the year | (15) | (42) |
Impairment | 0 | 0 |
Transfer | 0 | 0 |
Translation adjustment | (16) | 7 |
Balance at end of the period | 116 | 142 |
Other intangible assets | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at beginning of the period | 22 | 25 |
Additions | 5 | 12 |
Disposals | 0 | (2) |
Amortization charge for the year | (7) | (8) |
Impairment | 0 | 0 |
Transfer | (6) | (8) |
Translation adjustment | 1 | 3 |
Balance at end of the period | 15 | 22 |
Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at beginning of the period | 3,959 | 3,816 |
Additions | 13 | 0 |
Disposals | 0 | 0 |
Amortization charge for the year | 0 | 0 |
Impairment | (723) | (54) |
Transfer | 0 | 0 |
Translation adjustment | (567) | 197 |
Balance at end of the period | 2,682 | $ 3,959 |
Cost | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | 10,191 | |
Cost | Telecommunication licenses, frequencies & permissions | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | 2,170 | |
Cost | Software | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | 1,041 | |
Cost | Brands and trademarks | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | 457 | |
Cost | Customer relationships | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | 1,530 | |
Cost | Other intangible assets | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | 148 | |
Cost | Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | 4,845 | |
Accumulated depreciation and impairment | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | (6,039) | |
Accumulated depreciation and impairment | Telecommunication licenses, frequencies & permissions | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | (1,249) | |
Accumulated depreciation and impairment | Software | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | (740) | |
Accumulated depreciation and impairment | Brands and trademarks | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | (340) | |
Accumulated depreciation and impairment | Customer relationships | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | (1,414) | |
Accumulated depreciation and impairment | Other intangible assets | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | (133) | |
Accumulated depreciation and impairment | Goodwill | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance at end of the period | $ (2,163) |
INTANGIBLE ASSETS - Movement in
INTANGIBLE ASSETS - Movement in goodwill per cash-generating unit (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of changes in goodwill [abstract] | ||
Goodwill at beginning of period | $ 3,959 | $ 3,816 |
Impairment | (723) | (54) |
Translation adjustment | (567) | 197 |
Additional recognition, goodwill | 13 | |
Goodwill at end of period | 2,682 | 3,959 |
Russia | ||
Reconciliation of changes in goodwill [abstract] | ||
Goodwill at beginning of period | 2,265 | 2,018 |
Impairment | (723) | 0 |
Translation adjustment | (424) | 247 |
Additional recognition, goodwill | 13 | |
Goodwill at end of period | 1,131 | 2,265 |
Algeria | ||
Reconciliation of changes in goodwill [abstract] | ||
Goodwill at beginning of period | 1,167 | 1,176 |
Impairment | 0 | 0 |
Translation adjustment | (114) | (9) |
Additional recognition, goodwill | 0 | |
Goodwill at end of period | 1,053 | 1,167 |
Pakistan | ||
Reconciliation of changes in goodwill [abstract] | ||
Goodwill at beginning of period | 335 | 371 |
Impairment | 0 | 0 |
Translation adjustment | (11) | (36) |
Additional recognition, goodwill | 0 | |
Goodwill at end of period | 324 | 335 |
Kazakhstan | ||
Reconciliation of changes in goodwill [abstract] | ||
Goodwill at beginning of period | 154 | 153 |
Impairment | 0 | 0 |
Translation adjustment | (14) | 1 |
Additional recognition, goodwill | 0 | |
Goodwill at end of period | 140 | 154 |
Kyrgyzstan | ||
Reconciliation of changes in goodwill [abstract] | ||
Goodwill at beginning of period | 0 | 54 |
Impairment | (54) | |
Translation adjustment | 0 | |
Goodwill at end of period | 0 | |
Uzbekistan | ||
Reconciliation of changes in goodwill [abstract] | ||
Goodwill at beginning of period | 38 | 44 |
Impairment | 0 | 0 |
Translation adjustment | (4) | (6) |
Additional recognition, goodwill | 0 | |
Goodwill at end of period | $ 34 | $ 38 |
INTANGIBLE ASSETS - Schedule of
INTANGIBLE ASSETS - Schedule of Capital Commitments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of capital commitments [line items] | ||
Contractual commitments for acquisition of intangible assets | $ 31 | $ 82 |
Less than 1 year | ||
Disclosure of capital commitments [line items] | ||
Contractual commitments for acquisition of intangible assets | 31 | 77 |
Between 1 and 5 years | ||
Disclosure of capital commitments [line items] | ||
Contractual commitments for acquisition of intangible assets | $ 0 | $ 5 |
INTANGIBLE ASSETS - Amortizatio
INTANGIBLE ASSETS - Amortization period (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Telecommunications licenses, frequencies and permissions | Minimum | |
Intangible assets | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Telecommunications licenses, frequencies and permissions | Maximum | |
Intangible assets | |
Useful life measured as period of time, intangible assets other than goodwill | 20 years |
Software | Minimum | |
Intangible assets | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Software | Maximum | |
Intangible assets | |
Useful life measured as period of time, intangible assets other than goodwill | 10 years |
Brands and trademarks | Minimum | |
Intangible assets | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Brands and trademarks | Maximum | |
Intangible assets | |
Useful life measured as period of time, intangible assets other than goodwill | 15 years |
Customer relationships | Minimum | |
Intangible assets | |
Useful life measured as period of time, intangible assets other than goodwill | 10 years |
Customer relationships | Maximum | |
Intangible assets | |
Useful life measured as period of time, intangible assets other than goodwill | 21 years |
Other intangible assets | Minimum | |
Intangible assets | |
Useful life measured as period of time, intangible assets other than goodwill | 4 years |
Other intangible assets | Maximum | |
Intangible assets | |
Useful life measured as period of time, intangible assets other than goodwill | 10 years |
INVESTMENTS IN SUBSIDIARIES - I
INVESTMENTS IN SUBSIDIARIES - Information about significant subsidiaries (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
VEON Amsterdam B.V. | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 100.00% | 100.00% |
Veon Holdings B.v. | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 100.00% | 100.00% |
PJSC VimpelCom | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 100.00% | 100.00% |
JSC “Kyivstar” | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 100.00% | 100.00% |
LLP “KaR-Tel” | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 75.00% | 75.00% |
LLC “Unitel” | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 100.00% | 100.00% |
LLC “VEON Georgia” | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 80.00% | 80.00% |
CJSC “VEON Armenia” | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 0.00% | 100.00% |
LLC “Sky Mobile” | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 50.10% | 50.10% |
VEON Luxembourg Holdings S.à r.l. | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 100.00% | 100.00% |
VEON Luxembourg Finance Holdings S.à r.l. | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 100.00% | 100.00% |
VEON Luxembourg Finance S.A. | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 100.00% | 100.00% |
Global Telecom Holding S.A.E | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 99.60% | 99.54% |
Omnium Telecom Algerie Spa | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 45.40% | 45.40% |
Distributable profit percentage | 42.50% | |
Optimum Telecom Algeria S.p.A.* | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 45.40% | 45.40% |
Distributable profit percentage | 42.50% | |
Pakistan Mobile Communications Limited | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 85.00% | 85.00% |
Banglalink Digital Communications Limited | ||
Investments in subsidiaries | ||
Equity interest held by the Group | 100.00% | 100.00% |
INVESTMENTS IN SUBSIDIARIES - F
INVESTMENTS IN SUBSIDIARIES - Financial information of subsidiaries that have material NCIs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in subsidiaries | |||
Profit / (loss) attributable to material NCIs | $ 33 | $ 62 | $ (220) |
Kar-Tel | |||
Investments in subsidiaries | |||
Equity interest held by NCIs | 25.00% | 25.00% | |
Book values of material NCIs | $ 97 | $ 106 | |
Profit / (loss) attributable to material NCIs | $ 26 | $ 27 | |
Omnium Telecom Algerie Spa | |||
Investments in subsidiaries | |||
Equity interest held by NCIs | 54.40% | 54.40% | |
Book values of material NCIs | $ 783 | $ 871 | |
Profit / (loss) attributable to material NCIs | $ 43 | $ 55 |
INVESTMENTS IN SUBSIDIARIES - S
INVESTMENTS IN SUBSIDIARIES - Summarized income statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summarized income statement | |||
Operating revenue | $ 7,980 | $ 8,863 | $ 9,086 |
Profit / (loss) before tax from continuing operations | 26 | 1,181 | (248) |
Income tax expense | (342) | (498) | (369) |
Profit / (loss) for the period | (316) | 683 | 362 |
Total comprehensive income / (loss) | (857) | 739 | (525) |
Attributed to NCIs | (57) | 6 | (387) |
Kar-Tel | |||
Summarized income statement | |||
Operating revenue | 446 | 461 | 410 |
Operating expenses | (316) | (319) | (319) |
Other (expenses) / income | 4 | (6) | 6 |
Profit / (loss) before tax from continuing operations | 134 | 136 | 97 |
Income tax expense | (28) | (29) | (20) |
Profit / (loss) for the period | 106 | 107 | 77 |
Total comprehensive income / (loss) | 106 | 107 | 77 |
Attributed to NCIs | 26 | 27 | 19 |
Dividends paid to NCIs | 0 | 0 | 0 |
OTA | |||
Summarized income statement | |||
Operating revenue | 689 | 775 | 813 |
Operating expenses | (564) | (621) | (754) |
Other (expenses) / income | (17) | (17) | (11) |
Profit / (loss) before tax from continuing operations | 108 | 137 | 48 |
Income tax expense | (29) | (36) | (47) |
Profit / (loss) for the period | 79 | 101 | 1 |
Total comprehensive income / (loss) | 79 | 101 | 1 |
Attributed to NCIs | 43 | 55 | 1 |
Dividends paid to NCIs | $ 46 | $ 69 | $ 76 |
INVESTMENTS IN SUBSIDIARIES -_2
INVESTMENTS IN SUBSIDIARIES - Summarized statement of financial position (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of financial position | ||||
Property and equipment | $ 6,879 | $ 7,340 | ||
Other non-current assets | 179 | 163 | ||
Cash and cash equivalents | 1,594 | 1,250 | ||
Other current assets | 335 | 354 | ||
Debt and derivatives | (10,056) | (10,344) | ||
Total equity | 1,013 | 2,220 | $ 2,775 | $ 3,947 |
Equity holders of the parent | 163 | 1,226 | ||
Non-controlling interests | 850 | 994 | ||
Kar-Tel | ||||
Statement of financial position | ||||
Property and equipment | 276 | 271 | ||
Intangible assets | 94 | 86 | ||
Other non-current assets | 162 | 185 | ||
Trade and other receivables | 21 | 18 | ||
Cash and cash equivalents | 37 | 39 | ||
Other current assets | 31 | 12 | ||
Debt and derivatives | (75) | (63) | ||
Provisions | (6) | (6) | ||
Other liabilities | (152) | (119) | ||
Total equity | 388 | 423 | ||
Equity holders of the parent | 291 | 317 | ||
Non-controlling interests | 97 | 106 | ||
OTA | ||||
Statement of financial position | ||||
Property and equipment | 492 | 600 | ||
Intangible assets | 116 | 158 | ||
Other non-current assets | 1,071 | 1,187 | ||
Trade and other receivables | 31 | 34 | ||
Cash and cash equivalents | 67 | 67 | ||
Other current assets | 50 | 42 | ||
Debt and derivatives | (102) | (134) | ||
Provisions | (23) | (22) | ||
Other liabilities | (267) | (334) | ||
Total equity | 1,435 | 1,598 | ||
Equity holders of the parent | 652 | 727 | ||
Non-controlling interests | $ 783 | $ 871 |
INVESTMENTS IN SUBSIDIARIES -_3
INVESTMENTS IN SUBSIDIARIES - Summarized statement of cash flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments in subsidiaries | |||
Net operating cash flows | $ 2,443 | $ 2,949 | $ 2,515 |
Net investing cash flows | (1,910) | (1,888) | 1,997 |
Net financing cash flows | (103) | (1,639) | (3,916) |
Net foreign exchange difference | (48) | (9) | (119) |
Kar-Tel | |||
Investments in subsidiaries | |||
Net operating cash flows | 184 | 199 | 148 |
Net investing cash flows | (88) | (84) | (42) |
Net financing cash flows | (97) | (104) | (90) |
Net foreign exchange difference | (2) | 0 | (3) |
Net increase / (decrease) in cash equivalents | (3) | 11 | 13 |
OTA | |||
Investments in subsidiaries | |||
Net operating cash flows | 211 | 305 | 245 |
Net investing cash flows | (102) | (84) | (118) |
Net financing cash flows | (103) | (205) | (193) |
Net foreign exchange difference | (5) | (1) | (5) |
Net increase / (decrease) in cash equivalents | $ 1 | $ 15 | $ (71) |
OTHER NON-OPERATING GAIN _ (L_3
OTHER NON-OPERATING GAIN / (LOSS) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Non-Operating Gain (Loss) | |||
Ineffective portion of hedging activities | $ 15 | $ 20 | $ 8 |
Change of fair value of other derivatives | 6 | (17) | (58) |
Gain /(loss) from money market funds | 12 | 21 | 0 |
Loss from early debt redemption | 0 | 0 | (30) |
Other gains / (losses) | 78 | (3) | 12 |
Other non-operating gain / (loss) | 111 | $ 21 | $ (68) |
Gain from remeasurement of contingent consideration liability | $ 41 |
INVESTMENTS, DEBT AND DERIVAT_3
INVESTMENTS, DEBT AND DERIVATIVES - Investments and derivative assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
FINANCIAL ASSETS | ||
Carrying value | $ 470 | $ 317 |
Non-current | 305 | 235 |
Current | 165 | 82 |
At fair value | ||
FINANCIAL ASSETS | ||
Carrying value | 106 | 45 |
At fair value | Derivatives not designated as hedges | ||
FINANCIAL ASSETS | ||
Carrying value | 20 | 11 |
At fair value | Derivatives designated as net investment hedges | ||
FINANCIAL ASSETS | ||
Carrying value | 3 | 0 |
At fair value | Investments in debt instruments | ||
FINANCIAL ASSETS | ||
Carrying value | 75 | 34 |
At fair value | Other | ||
FINANCIAL ASSETS | ||
Carrying value | 8 | 0 |
At amortized cost | ||
FINANCIAL ASSETS | ||
Carrying value | 364 | 272 |
At amortized cost | Security deposits and cash collateral | ||
FINANCIAL ASSETS | ||
Carrying value | 325 | 256 |
At amortized cost | Other investments | ||
FINANCIAL ASSETS | ||
Carrying value | $ 39 | $ 16 |
INVESTMENTS, DEBT AND DERIVAT_4
INVESTMENTS, DEBT AND DERIVATIVES - Security deposits (Details) $ / mHz in Millions, $ in Millions | Jul. 22, 2019USD ($)numberOfMegahertz$ / mHz | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | May 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Disclosure of financial assets [line items] | |||||
Financial assets | $ 470 | $ 317 | |||
At amortized cost | |||||
Disclosure of financial assets [line items] | |||||
Financial assets | 364 | 272 | |||
Security deposits and cash collateral | At amortized cost | |||||
Disclosure of financial assets [line items] | |||||
Financial assets | $ 325 | $ 256 | |||
PTA License Renewal | |||||
Disclosure of financial assets [line items] | |||||
License renewal assessment, tax percentage | 13.00% | ||||
PTA License Renewal | Security deposits and cash collateral | At amortized cost | |||||
Disclosure of financial assets [line items] | |||||
Financial assets | $ 225 | $ 57 | |||
PTA License Renewal | 900 MHz Spectrum | |||||
Disclosure of financial assets [line items] | |||||
License renewal assessment, amount per spectrum block | $ / mHz | 40 | ||||
Frequency bands | numberOfMegahertz | 900 | ||||
License renewal assessment, total amount | $ 450 | ||||
PTA License Renewal | 1800 MHz spectrum | |||||
Disclosure of financial assets [line items] | |||||
License renewal assessment, amount per spectrum block | $ / mHz | 30 | ||||
Frequency bands | numberOfMegahertz | 1,800 |
INVESTMENTS, DEBT AND DERIVAT_5
INVESTMENTS, DEBT AND DERIVATIVES - Debt and derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | $ 10,056 | $ 10,344 | |
Non-current | 8,832 | 7,759 | |
Current | 1,224 | 2,585 | |
At fair value | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | 53 | 254 | |
At fair value | Derivatives not designated as hedges | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | 52 | 52 | |
At fair value | Derivatives designated as net investment hedges | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | 1 | 161 | |
At fair value | Contingent consideration | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | 0 | 41 | |
At amortized cost | Principal amount outstanding | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | 7,678 | 7,519 | |
At amortized cost | Interest accrued | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | 85 | 79 | |
At amortized cost | Discounts, unamortized fees, hedge basis adjustment | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | (5) | (10) | |
At amortized cost | Bank loans and bonds | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | 7,758 | 7,588 | |
At amortized cost | Lease liabilities | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | 1,912 | 2,083 | |
At amortized cost | Put-option liability over non-controlling interest | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | 273 | 342 | |
At amortized cost | Put-option liability over non-controlling interest | PMCL (Pakistan Mobile Communications Ltd) | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | $ 273 | ||
At amortized cost | Other financial liabilities | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | 60 | 77 | |
At amortized cost | Financial liabilities at amortised cost, class | |||
Disclosure of fair value measurement of liabilities [line items] | |||
Total financial liabilities | $ 10,003 | $ 10,090 |
INVESTMENTS, DEBT AND DERIVAT_6
INVESTMENTS, DEBT AND DERIVATIVES - Bank loans and bonds (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | $ 7,678 | $ 7,519 | |
Loan 8.75-10.0% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | 0 | 2,303 | |
Loan 7.35-7.50% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | 812 | 0 | |
Loan 1.85-2.2% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | $ 1,083 | 0 | |
Notes 5.95% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 5.95% | ||
Principal amount outstanding | $ 529 | 529 | |
Notes 3.95-4.95% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | $ 533 | 1,133 | |
Notes 7.5% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 7.50% | ||
Principal amount outstanding | $ 417 | 417 | |
Notes 3.38% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 3.38% | ||
Principal amount outstanding | $ 1,250 | 0 | |
Notes 7.25% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 7.25% | ||
Principal amount outstanding | $ 700 | 0 | |
Notes 6.30-6.50% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | $ 406 | 0 | |
Notes 4.00% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 4.00% | ||
Principal amount outstanding | $ 1,000 | 700 | |
Notes 6.25-7.25% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | $ 0 | 1,200 | |
Eurobonds | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 7.75% | ||
Principal amount outstanding | $ 262 | 262 | |
Loan 0.35% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | 111 | 192 | |
Loan 0.8% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | 0 | 34 | |
Loan 1.9% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | 0 | 75 | |
Loan 0.75% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | 273 | 121 | |
Loan 2.50% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | 0 | 300 | |
Loan 3.0-4.25% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | 80 | 116 | |
Loan 9.0-10.15% | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | 85 | 0 | |
Other bank loans and bonds | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | $ 52 | 96 | |
Minimum | Loan 8.75-10.0% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 8.75% | ||
Minimum | Loan 7.35-7.50% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 7.35% | ||
Minimum | Notes 3.95-4.95% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 3.95% | ||
Minimum | Notes 6.30-6.50% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 6.30% | ||
Minimum | Notes 6.25-7.25% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 6.25% | ||
Minimum | Loan 9.0-10.15% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 10.15% | ||
Maximum | Loan 8.75-10.0% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 10.00% | ||
Maximum | Loan 7.35-7.50% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 7.50% | ||
Maximum | Notes 3.95-4.95% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 4.95% | ||
Maximum | Notes 6.30-6.50% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 6.50% | ||
Maximum | Notes 6.25-7.25% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 7.25% | ||
Maximum | Loan 9.0-10.15% | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings, interest rate | 11.00% | ||
Floating interest rate - % in addition to key rate | Minimum | Loan 1.85-2.2% | |||
Disclosure of detailed information about borrowings [line items] | |||
Spread on interest rate basis | 1.85% | ||
Floating interest rate - % in addition to key rate | Maximum | Loan 1.85-2.2% | |||
Disclosure of detailed information about borrowings [line items] | |||
Spread on interest rate basis | 2.20% | ||
NBU key rate | Loat 3.0% | |||
Disclosure of detailed information about borrowings [line items] | |||
Spread on interest rate basis | 3.00% | ||
Principal amount outstanding | $ 56 | 0 | |
6m KIBOR | |||
Disclosure of detailed information about borrowings [line items] | |||
Principal amount outstanding | $ 29 | $ 41 | |
6m KIBOR | Loan 0.35% | |||
Disclosure of detailed information about borrowings [line items] | |||
Spread on interest rate basis | 0.35% | ||
6m KIBOR | Loan 0.8% | |||
Disclosure of detailed information about borrowings [line items] | |||
Spread on interest rate basis | 0.80% | ||
6m KIBOR | Loan 0.75% | |||
Disclosure of detailed information about borrowings [line items] | |||
Spread on interest rate basis | 0.55% | 0.75% | |
6m LIBOR | Loan 1.9% | |||
Disclosure of detailed information about borrowings [line items] | |||
Spread on interest rate basis | 1.90% | ||
3m LIBOR | Loan 2.50% | |||
Disclosure of detailed information about borrowings [line items] | |||
Spread on interest rate basis | 2.50% | ||
Average bank deposit rate | Minimum | Loan 3.0-4.25% | |||
Disclosure of detailed information about borrowings [line items] | |||
Spread on interest rate basis | 3.00% | ||
Average bank deposit rate | Maximum | Loan 3.0-4.25% | |||
Disclosure of detailed information about borrowings [line items] | |||
Spread on interest rate basis | 4.25% |
INVESTMENTS, DEBT AND DERIVAT_7
INVESTMENTS, DEBT AND DERIVATIVES - Reconciliation of cash flows from financing activities (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Reconciliation of cash flows from financing activities | ||||
Liabilities arising from financing activities at beginning of period | $ 9,671 | $ 9,365 | ||
Cash flows | ||||
Proceeds from borrowings, net of fees paid | [1] | 4,621 | 2,610 | $ 807 |
Repayment of debt | (4,376) | (2,978) | (4,122) | |
Interest paid | (644) | (714) | ||
Non-cash movements | ||||
Interest and fee accruals | 702 | 777 | ||
Lease additions, disposals, impairment and modifications | 432 | 262 | ||
Foreign currency translation | (684) | 351 | ||
Other non-cash movements | (51) | (2) | ||
Liabilities arising from financing activities at end of period | 9,671 | 9,671 | 9,365 | |
Bank loans and bonds | ||||
Reconciliation of cash flows from financing activities | ||||
Liabilities arising from financing activities at beginning of period | 7,588 | 7,366 | ||
Cash flows | ||||
Proceeds from borrowings, net of fees paid | 4,621 | 2,610 | ||
Repayment of debt | (4,054) | (2,612) | ||
Interest paid | (494) | (566) | ||
Non-cash movements | ||||
Interest and fee accruals | 546 | 599 | ||
Lease additions, disposals, impairment and modifications | 0 | 0 | ||
Foreign currency translation | (398) | 193 | ||
Other non-cash movements | (51) | (2) | ||
Liabilities arising from financing activities at end of period | 7,758 | 7,588 | 7,366 | |
Lease liabilities | ||||
Reconciliation of cash flows from financing activities | ||||
Liabilities arising from financing activities at beginning of period | 2,083 | 1,999 | ||
Cash flows | ||||
Proceeds from borrowings, net of fees paid | 0 | 0 | ||
Repayment of debt | (322) | (366) | ||
Interest paid | (150) | (148) | ||
Non-cash movements | ||||
Interest and fee accruals | 156 | 178 | ||
Lease additions, disposals, impairment and modifications | 432 | 262 | ||
Foreign currency translation | (286) | 158 | ||
Other non-cash movements | 0 | 0 | ||
Liabilities arising from financing activities at end of period | $ 1,913 | $ 2,083 | $ 1,999 | |
[1] | Fees paid for borrowings were US$29 (2019: US$23, 2018: US$64) |
INVESTMENTS, DEBT AND DERIVAT_8
INVESTMENTS, DEBT AND DERIVATIVES - Financing activities 2020 (Details) ₽ in Millions, ₴ in Billions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2020USD ($)facility | Sep. 30, 2020RUB (₽)facility | Sep. 30, 2020USD ($)facility | Jul. 31, 2020RUB (₽) | Jul. 31, 2020USD ($) | Jun. 30, 2020USD ($)facility | Apr. 30, 2020USD ($) | Mar. 31, 2020RUB (₽)drawdown | Jul. 31, 2016USD ($) | Mar. 31, 2021 | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020UAH (₴) | Nov. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Jul. 31, 2020USD ($) | Jun. 30, 2020RUB (₽) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Feb. 29, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2019USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount outstanding | $ 7,678,000,000 | $ 7,678,000,000 | $ 7,519,000,000 | |||||||||||||||||||
PMCL (Pakistan Mobile Communications Ltd) | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Put option % acquired | 15.00% | 15.00% | ||||||||||||||||||||
PMCL (Pakistan Mobile Communications Ltd) | Finance costs | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Gains on disposals of investments | $ 59,000,000 | |||||||||||||||||||||
PMCL (Pakistan Mobile Communications Ltd) | Warid Telecom (Pvt) Limited | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Contingency period | 4 years | |||||||||||||||||||||
Reversed unsettled liabilities, contingent liabilities recognised in business combination | $ 41,000,000 | $ 41,000,000 | ||||||||||||||||||||
PMCL (Pakistan Mobile Communications Ltd) | Major business combination | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | |||||||||||||||||||||
Warid Telecom (Pvt) Limited | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Proportion of voting rights held in subsidiary | 100.00% | |||||||||||||||||||||
Warid Telecom (Pvt) Limited | Pakistan Mobile Communications Limited | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Consideration transferred in kind | 15.00% | |||||||||||||||||||||
Veon Holdings B.v. | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | ||||||||||||||||||||
Banglalink Digital Communications Limited | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | ||||||||||||||||||||
Notes 3.95% | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Facility amount | $ 600,000,000 | $ 600,000,000 | ||||||||||||||||||||
Borrowings, interest rate | 3.95% | 3.95% | 3.95% | |||||||||||||||||||
Percentage of redemption price realised | 101.00% | 101.00% | 101.00% | |||||||||||||||||||
Kyivstar UAH4.1bn bilateral facility | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Facility amount | $ 146,000,000 | $ 146,000,000 | ₴ 4.1 | |||||||||||||||||||
Number of facilities | facility | 3 | |||||||||||||||||||||
Kyivstar UAH4.1bn bilateral facility | OTP Bank | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, interest rate | 10.15% | 10.15% | 10.15% | |||||||||||||||||||
Borrowings term | 3 years | |||||||||||||||||||||
Kyivstar UAH4.1bn bilateral facility | Raiffeisen Bank Aval | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, interest rate | 11.00% | 11.00% | 11.00% | |||||||||||||||||||
Borrowings term | 5 years | |||||||||||||||||||||
Kyivstar UAH4.1bn bilateral facility | Alfa-Bank | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, interest rate | 3.00% | 3.00% | 3.00% | |||||||||||||||||||
Borrowings term | 3 years | |||||||||||||||||||||
MTN unsecured notes | Veon Holdings B.v. | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Bonds issued | ₽ 10,000 | $ 1,250,000,000 | $ 135,000,000 | ₽ 20,000 | $ 288,000,000 | |||||||||||||||||
MTN unsecured notes | Veon Holdings B.v. | Maximum | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Bonds issued | $ 6,500,000,000 | |||||||||||||||||||||
VTB Bank bilateral term loan | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Facility amount | ₽ 30,000 | $ 422,000,000 | ||||||||||||||||||||
VTB Bank bilateral term loan | Bilateral term loan refinancing | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Facility amount | ₽ 30,000 | $ 422,000,000 | ||||||||||||||||||||
VTB Bank bilateral term loan | Bilateral term loan refinancing | Fixed interest rate | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, interest rate | 8.75% | 8.75% | ||||||||||||||||||||
VTB Bank bilateral term loan | Bilateral term loan refinancing | Floating interest rate - % in addition to key rate | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, interest rate | 1.85% | 1.85% | ||||||||||||||||||||
RUB100bn bilateral facility | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Facility amount | ₽ | 100,000 | |||||||||||||||||||||
Number of facilities | facility | 4 | |||||||||||||||||||||
Number of facilities utilized | facility | 3 | |||||||||||||||||||||
Principal amount outstanding | ₽ | ₽ 87,500 | |||||||||||||||||||||
Number of facilities repaid | facility | 1 | 1 | ||||||||||||||||||||
Repayments of non-current borrowings | ₽ | ₽ 20,000 | |||||||||||||||||||||
Borrowing costs incurred | $ 0 | |||||||||||||||||||||
Proceeds from non-current borrowings | ₽ | ₽ 12,500 | |||||||||||||||||||||
RUB100bn bilateral facility | Minimum | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings term | 2 years | |||||||||||||||||||||
RUB100bn bilateral facility | Maximum | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings term | 4 years | |||||||||||||||||||||
RUB100bn bilateral facility | Veon Holdings B.v. | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Facility amount | 1,450,000,000 | |||||||||||||||||||||
Principal amount outstanding | $ 1,281,000,000 | |||||||||||||||||||||
USD300M syndicated term facility | Banglalink Digital Communications Limited | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount outstanding | 300,000,000 | |||||||||||||||||||||
Borrowing costs incurred | $ 0 | |||||||||||||||||||||
Borrowings maturity, extension term | 2 years | |||||||||||||||||||||
USD600M term facility | Veon Holdings B.v. | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount outstanding | $ 600,000,000 | |||||||||||||||||||||
Repayments of non-current borrowings | $ 500,000,000 | $ 100,000,000 | ||||||||||||||||||||
Number of drawdowns | drawdown | 2 | |||||||||||||||||||||
RUB17.5bn Alfa bank facility | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount outstanding | ₽ | ₽ 17,500 | |||||||||||||||||||||
RUB30bn Alfa bank facility | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Principal amount outstanding | ₽ 30,000 | $ 165,000,000 | ||||||||||||||||||||
Bonds 6.25% | Global Telecom Holding | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, interest rate | 6.25% | |||||||||||||||||||||
Principal amount outstanding | $ 500,000,000 | |||||||||||||||||||||
Senior unsecured notes 4% | Veon Holdings B.v. | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Borrowings, interest rate | 4.00% | |||||||||||||||||||||
Bonds issued | $ 300,000,000 | $ 700,000,000 | ||||||||||||||||||||
Contingent consideration | Level 3 | Financial instruments at fair value | ||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||
Financial liabilities, at fair value | $ 0 |
INVESTMENTS, DEBT AND DERIVAT_9
INVESTMENTS, DEBT AND DERIVATIVES - Financing activities 2019 (Details) | 1 Months Ended | |||||
Jun. 30, 2019USD ($) | Apr. 30, 2019USD ($) | Dec. 31, 2020 | Oct. 31, 2019USD ($) | Jun. 30, 2019PKR (₨) | May 31, 2019USD ($) | |
Notes 4% | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Facility amount | $ 700,000,000 | |||||
Borrowings, interest rate | 4.00% | |||||
PKR 14,369 Loan 0.75% | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Facility amount | $ 92,000,000 | ₨ 14,369,000,000 | ||||
PKR 45,000 Loan 0.75% | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Facility amount | $ 287,000,000 | ₨ 45,000,000,000 | ||||
Loan 2.50% | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Facility amount | $ 300,000,000 | |||||
Borrowings term | 12 months | |||||
Borrowings extension option, term | 24 months | |||||
Notes 8.63% | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Facility amount | $ 300,000,000 | |||||
6m KIBOR | Loan 0.75% | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings term | 7 years | |||||
Spread on interest rate basis | 0.75% | 0.55% | 0.75% |
INVESTMENTS, DEBT AND DERIVA_10
INVESTMENTS, DEBT AND DERIVATIVES - Fair value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Bank loans and bonds | At amortized cost | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Financial liabilities, at fair value | $ 8,031 | $ 7,887 |
INVESTMENTS, DEBT AND DERIVA_11
INVESTMENTS, DEBT AND DERIVATIVES - Hedge accounting (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | ||
Derivative, hedge ratio | 100.00% | |
Foreign currency translation reserve | ||
Disclosure of detailed information about borrowings [line items] | ||
Gains (losses) on hedges of net investments in foreign operations, net of tax | $ 178 | $ (228) |
Foreign currency forward contracts | Net investment hedge accounting | ||
Disclosure of detailed information about borrowings [line items] | ||
Aggregated designated nominal value of hedged items | $ 26,758 | $ 88,220 |
Weighted average term of contract | 1 year | 1 year |
INVESTMENTS, DEBT AND DERIVA_12
INVESTMENTS, DEBT AND DERIVATIVES - Impact of hedge accounting on equity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Equity at beginning of period | $ 2,220 | $ 2,775 | $ 3,947 |
Other | (1) | (53) | (41) |
Equity at end of period | 1,013 | 2,220 | 2,775 |
Foreign currency translation reserve | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Equity at beginning of period | (8,312) | (8,416) | (7,667) |
Foreign currency revaluation of the foreign operations and other | (615) | 332 | |
Effective portion of foreign currency revaluation of the hedging instruments | 178 | (228) | |
Change in fair value of foreign currency basis spreads | 0 | 0 | |
Amortization of time-period related foreign currency basis spreads | 0 | 0 | |
Other | (26) | (1) | (13) |
Equity at end of period | (8,775) | (8,312) | (8,416) |
Cost of hedging reserve | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Equity at beginning of period | 9 | 5 | |
Foreign currency revaluation of the foreign operations and other | 0 | 0 | |
Effective portion of foreign currency revaluation of the hedging instruments | 0 | 0 | |
Change in fair value of foreign currency basis spreads | 7 | 23 | |
Amortization of time-period related foreign currency basis spreads | (15) | (19) | |
Other | 0 | ||
Equity at end of period | $ 1 | $ 9 | $ 5 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | ||
Cash and cash equivalents [abstract] | |||||||
Cash and cash equivalents at banks and on hand | $ 694,000,000 | $ 932,000,000 | |||||
Cash equivalents with original maturity of less than three months | 900,000,000 | 318,000,000 | |||||
Cash and cash equivalents | 1,594,000,000 | 1,250,000,000 | |||||
Less overdrafts | (8,000,000) | (46,000,000) | |||||
Cash and cash equivalents, net of overdrafts, as presented in the consolidated statement of cash flows | 1,586,000,000 | [1] | 1,204,000,000 | [1] | $ 1,791,000,000 | $ 1,314,000,000 | |
Restricted cash | 0 | 0 | |||||
Investments in money market funds | 543,000,000 | 155,000,000 | |||||
Overdrafts | $ 8,000,000 | $ 46,000,000 | |||||
[1] | Overdrawn amount was US$8 (2019: US$46) |
FINANCIAL RISK MANAGEMENT - Int
FINANCIAL RISK MANAGEMENT - Interest rate risk (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INTEREST RATE RISK | ||
FINANCIAL RISK MANAGEMENT | ||
Percent of borrowings that are at a fixed rate of interest | 79.00% | 91.00% |
Interest rate appreciation risk | ||
FINANCIAL RISK MANAGEMENT | ||
Percentage of change in significant exposure used for sensitivity analysis | 1.00% | 1.00% |
Interest rate depreciation risk | ||
FINANCIAL RISK MANAGEMENT | ||
Percentage of change in significant exposure used for sensitivity analysis | 1.00% | 1.00% |
FINANCIAL RISK MANAGEMENT - For
FINANCIAL RISK MANAGEMENT - Foreign currency risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Risk of exchange rate depreciation | ||
Foreign currency sensitivity | ||
Change in foreign exchange rate against US$ | 10.00% | |
Risk of exchange rate appreciation | ||
Foreign currency sensitivity | ||
Change in foreign exchange rate against US$ | 10.00% | |
Russian Ruble | Risk of exchange rate depreciation | ||
Foreign currency sensitivity | ||
Effect on profit / (loss) before tax | $ 35 | $ (9) |
Effect on other comprehensive income | 32 | 119 |
Russian Ruble | Risk of exchange rate appreciation | ||
Foreign currency sensitivity | ||
Effect on profit / (loss) before tax | (39) | 11 |
Effect on other comprehensive income | (39) | (145) |
Bangladeshi Taka | Risk of exchange rate depreciation | ||
Foreign currency sensitivity | ||
Effect on profit / (loss) before tax | (30) | (27) |
Effect on other comprehensive income | 0 | 0 |
Bangladeshi Taka | Risk of exchange rate appreciation | ||
Foreign currency sensitivity | ||
Effect on profit / (loss) before tax | 33 | 30 |
Effect on other comprehensive income | 0 | 0 |
Pakistani Rupee | Risk of exchange rate depreciation | ||
Foreign currency sensitivity | ||
Effect on profit / (loss) before tax | (4) | (10) |
Effect on other comprehensive income | 0 | 0 |
Pakistani Rupee | Risk of exchange rate appreciation | ||
Foreign currency sensitivity | ||
Effect on profit / (loss) before tax | 4 | 11 |
Effect on other comprehensive income | 0 | 0 |
Georgian Lari | Risk of exchange rate depreciation | ||
Foreign currency sensitivity | ||
Effect on profit / (loss) before tax | (36) | (36) |
Effect on other comprehensive income | 0 | 0 |
Georgian Lari | Risk of exchange rate appreciation | ||
Foreign currency sensitivity | ||
Effect on profit / (loss) before tax | 40 | 39 |
Effect on other comprehensive income | 0 | 0 |
Other currencies (net) | Risk of exchange rate depreciation | ||
Foreign currency sensitivity | ||
Effect on profit / (loss) before tax | 8 | (4) |
Effect on other comprehensive income | 4 | 0 |
Other currencies (net) | Risk of exchange rate appreciation | ||
Foreign currency sensitivity | ||
Effect on profit / (loss) before tax | (9) | 5 |
Effect on other comprehensive income | $ (4) | $ 0 |
FINANCIAL RISK MANAGEMENT - Liq
FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) ₨ in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020PKR (₨) | Dec. 31, 2019USD ($) | Dec. 31, 2019PKR (₨) |
Veon Holdings B.v. Revolving Credit Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Facility amount | $ 1,585 | $ 1,688 | ||
Utilized | 0 | 0 | ||
Undrawn borrowing facilities | 1,585 | 1,688 | ||
PMCL - Term Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Facility amount | 90 | ₨ 14,369 | ||
Utilized | 62 | 9,999 | ||
Undrawn borrowing facilities | 28 | 4,370 | ||
Kartel - Term Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Facility amount | 24 | 10,000 | ||
Utilized | 12 | 5,000 | ||
Undrawn borrowing facilities | 12 | ₨ 5,000 | ||
Veon Holdings B.V. Revolving Credit Facility, available until February 2021 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Reduced facility amount | 1,586 | 1,586 | ||
Veon Holdings B.V. Revolving Credit Facility, available until February 2022 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Reduced facility amount | $ 1,382 | |||
PMCL - Syndicated Term Facility and Islamic Finance Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Facility amount | 291 | ₨ 45,000 | ||
Utilized | 103 | 15,885 | ||
Undrawn borrowing facilities | 188 | 29,115 | ||
PMCL - Term Facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Facility amount | 93 | 14,369 | ||
Utilized | 19 | 2,963 | ||
Undrawn borrowing facilities | $ 74 | ₨ 11,406 | ||
Liquidity risk | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Percentage of debt that will mature in less than one year | 5.00% | 5.00% | 21.00% | 21.00% |
FINANCIAL RISK MANAGEMENT - L_2
FINANCIAL RISK MANAGEMENT - Liquidity risk maturity profile (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | $ 13,794 | $ 14,034 |
Related derivative financial assets | 3 | (11) |
Total financial liabilities, net of derivative assets | 13,797 | 14,023 |
Bank loans and bonds | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 9,176 | 8,812 |
Lease liabilities | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 2,299 | 2,649 |
Gross cash inflows | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | (228) | (1,528) |
Gross cash outflows | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 237 | 1,794 |
Trade and other payables | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 1,977 | 1,847 |
Other financial liabilities | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 60 | 118 |
Warid non-controlling interest put option liability | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 273 | 342 |
Gross cash inflows | ||
Maturity profile of the Group's financial liabilities | ||
Related derivative financial assets | 152 | (273) |
Gross cash outflows | ||
Maturity profile of the Group's financial liabilities | ||
Related derivative financial assets | (149) | 262 |
Less than 1 year | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 3,626 | 5,072 |
Related derivative financial assets | 3 | (11) |
Total financial liabilities, net of derivative assets | 3,629 | 5,061 |
Less than 1 year | Bank loans and bonds | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 842 | 2,100 |
Less than 1 year | Lease liabilities | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 525 | 581 |
Less than 1 year | Gross cash inflows | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | (228) | (1,150) |
Less than 1 year | Gross cash outflows | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 237 | 1,311 |
Less than 1 year | Trade and other payables | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 1,977 | 1,847 |
Less than 1 year | Other financial liabilities | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 0 | 41 |
Less than 1 year | Warid non-controlling interest put option liability | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 273 | 342 |
Less than 1 year | Gross cash inflows | ||
Maturity profile of the Group's financial liabilities | ||
Related derivative financial assets | 152 | (273) |
Less than 1 year | Gross cash outflows | ||
Maturity profile of the Group's financial liabilities | ||
Related derivative financial assets | (149) | 262 |
1-3 years | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 4,759 | 5,011 |
Total financial liabilities, net of derivative assets | 4,759 | 5,011 |
1-3 years | Bank loans and bonds | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 3,803 | 3,909 |
1-3 years | Lease liabilities | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 896 | 920 |
1-3 years | Gross cash inflows | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | (378) | |
1-3 years | Gross cash outflows | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 483 | |
1-3 years | Other financial liabilities | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 60 | 77 |
3-5 years | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 3,762 | 2,737 |
Total financial liabilities, net of derivative assets | 3,762 | 2,737 |
3-5 years | Bank loans and bonds | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 3,123 | 2,009 |
3-5 years | Lease liabilities | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 639 | 728 |
More than 5 years | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 1,647 | 1,214 |
Total financial liabilities, net of derivative assets | 1,647 | 1,214 |
More than 5 years | Bank loans and bonds | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | 1,408 | 794 |
More than 5 years | Lease liabilities | ||
Maturity profile of the Group's financial liabilities | ||
Total financial liabilities | $ 239 | $ 420 |
FINANCIAL RISK MANAGEMENT - Cap
FINANCIAL RISK MANAGEMENT - Capital management (Details) - Capital management | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Dividend policy on payments, Minimum percentage of prior year Equity Free Cash Flow after licenses | 50.00% |
Net debt to Adjusted EBITDA target, under IAS 17 | 2 |
Net debt to Adjusted EBITDA target, under IFRS 16 | 2.4 |
Maximum | |
Disclosure of risk management strategy related to hedge accounting [line items] | |
Required net debt to adjusted EBITDA | 3.5 |
ISSUED CAPITAL AND RESERVES - C
ISSUED CAPITAL AND RESERVES - Common Stock (Details) - Common shares - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
ISSUED CAPITAL AND RESERVES | ||
Par value ($ per share) | $ 0.001 | $ 0.001 |
Authorized common shares (nominal value of US$0.001 per share) | 1,849,190,667 | 1,849,190,667 |
Share held by a subsidiary of the Company (in shares) | 7,603,731 | |
Issued shares, including 7,603,731 shares held by a subsidiary of the Company | 1,756,731,135 | 1,756,731,135 |
Par value ($ per share) | $ 0.001 | $ 0.001 |
ISSUED CAPITAL AND RESERVES - M
ISSUED CAPITAL AND RESERVES - Major Shareholders (Details) | Dec. 31, 2020shares |
ISSUED CAPITAL AND RESERVES | |
Free Float percentage | 43.80% |
Total percentage of common and voting shares | 100.00% |
Common shares | |
ISSUED CAPITAL AND RESERVES | |
Free Float (in shares) | 770,158,572 |
Outstanding shares (in shares) | 1,756,731,135 |
Share held by a subsidiary of the Company (in shares) | 7,603,731 |
L1T VIP Holdings S.à r.l. (“LetterOne”) | |
ISSUED CAPITAL AND RESERVES | |
Percentage of common and voting shares | 47.90% |
L1T VIP Holdings S.à r.l. (“LetterOne”) | Common shares | |
ISSUED CAPITAL AND RESERVES | |
Total outstanding common shares (in shares) | 840,625,001 |
Stichting Administratiekantoor Mobile Telecommunications Investor * | |
ISSUED CAPITAL AND RESERVES | |
Percentage of common and voting shares | 8.30% |
Stichting Administratiekantoor Mobile Telecommunications Investor * | Common shares | |
ISSUED CAPITAL AND RESERVES | |
Total outstanding common shares (in shares) | 145,947,562 |
EARNINGS PER SHARE - Continued
EARNINGS PER SHARE - Continued operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Profit / (loss) for the period attributable to the owners of the parent | $ (349) | $ 621 | $ (397) |
Denominator: | |||
Weighted average common shares outstanding for basic earnings per share (in millions) (in shares) | 1,749 | 1,749 | 1,749 |
Denominator for diluted earnings per share (in millions) (in shares) | 1,749 | 1,749 | 1,749 |
Basic (loss) / earnings per share (in dollars per share) | $ (0.20) | $ 0.36 | $ (0.23) |
Diluted (loss) / earnings per share (in dollars per share) | $ (0.20) | $ 0.36 | $ (0.23) |
EARNINGS PER SHARE - Discontinu
EARNINGS PER SHARE - Discontinued operations (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Profit / (loss) for the period attributable to the owners of the parent | $ 0 | $ 0 | $ 979 |
Denominator: | |||
Weighted average common shares outstanding for basic earnings per share (in millions) (in shares) | 1,749 | 1,749 | 1,749 |
Denominator for diluted earnings per share (in millions) (in shares) | 1,749 | 1,749 | 1,749 |
Basic (loss) / earnings per share (in dollars per share) | $ 0 | $ 0 | $ 0.56 |
Diluted (loss) / earnings per share (in dollars per share) | $ 0 | $ 0 | $ 0.56 |
DIVIDENDS PAID AND PROPOSED - D
DIVIDENDS PAID AND PROPOSED - Declared (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Aug. 31, 2019 | Dec. 31, 2020 | |
Dividends [line items] | |||
Dividends paid (in dollars per share) | $ 0.15 | $ 0.13 | |
Maximum | |||
Dividends [line items] | |||
Tax rate withholdings on dividend paid to company's ADS depositary | 15.00% |
DIVIDENDS PAID AND PROPOSED - N
DIVIDENDS PAID AND PROPOSED - Non-controlling Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends [line items] | |||
Dividends paid to non-controlling interests | $ 87 | $ 108 | $ 93 |
Dividend payable to non-controlling interest | 0 | 0 | 7 |
Omnium Telecom Algeria S.p.A | |||
Dividends [line items] | |||
Dividends paid to non-controlling interests | 45 | 69 | 76 |
VIP Kazakhstan Holding AG | |||
Dividends [line items] | |||
Dividends paid to non-controlling interests | 24 | 24 | 0 |
TNS Plus LLP | |||
Dividends [line items] | |||
Dividends paid to non-controlling interests | 16 | 12 | 13 |
Other | |||
Dividends [line items] | |||
Dividends paid to non-controlling interests | 2 | 3 | 4 |
Pakistan Mobile Communications Limited | |||
Dividends [line items] | |||
Dividend declared to the non-controlling interest | $ 25 | $ 24 | $ 11 |
RELATED PARTIES - Compensation
RELATED PARTIES - Compensation to directors and senior managers of the company (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | |||
Short-term employee benefits | $ 35 | $ 48 | $ 33 |
Long-term employee benefits | 1 | 0 | 0 |
Share-based payments | 0 | 3 | 0 |
Termination benefits | 4 | 0 | 2 |
Total compensation to directors and senior management | $ 40 | $ 51 | $ 35 |
RELATED PARTIES - Compensatio_2
RELATED PARTIES - Compensation to key senior managers (Details) | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2020EUR (€) | |
Disclosure of transactions between related parties | ||||||
Long-term employee benefits | $ 1,000,000 | $ 0 | $ 0 | |||
Share-based payments | 0 | 3,000,000 | 0 | |||
Total compensation to directors and senior management | 40,000,000 | 51,000,000 | $ 35,000,000 | |||
Accrued payroll taxes | 10,000,000 | € 9,000,000 | ||||
Joint Group COO Kaan Terzioglu | ||||||
Disclosure of transactions between related parties | ||||||
Base salary | 1,508,380 | € 1,323,000 | 246,782 | € 220,500 | ||
Annual incentive | 1,060,789 | 930,418 | 528,429 | 472,151 | ||
Other | 501,262 | 439,657 | 118,633 | 105,999 | ||
Long-term employee benefits | 87,066 | 76,366 | ||||
Share-based payments | 100,394 | 88,056 | ||||
Total compensation to directors and senior management | 3,257,891 | 2,857,497 | 893,844 | 798,650 | ||
Joint Group COO Sergi Herrero | ||||||
Disclosure of transactions between related parties | ||||||
Base salary | 1,346,902 | 1,181,368 | 382,805 | 342,036 | ||
Annual incentive | 877,486 | 769,643 | 575,781 | 514,460 | ||
Other | 2,460,406 | 2,158,022 | 1,746,199 | 1,560,229 | ||
Long-term employee benefits | 805,980 | 706,925 | ||||
Share-based payments | 66,933 | 58,707 | ||||
Total compensation to directors and senior management | 5,557,707 | 4,874,665 | 2,704,785 | 2,416,725 | ||
Group CEO Ursula Burns | ||||||
Disclosure of transactions between related parties | ||||||
Base salary | 1,325,676 | 1,162,750 | 6,155,568 | 5,500,000 | ||
Annual incentive | 616,787 | 540,984 | 11,707,890 | 10,461,000 | ||
Other | 632,001 | 554,328 | 1,283,159 | 1,146,503 | ||
Share-based payments | 127,013 | 111,403 | ||||
Total compensation to directors and senior management | 2,701,477 | 2,369,465 | 19,146,617 | 17,107,503 | ||
Group CFO, Serkan Okandan | ||||||
Disclosure of transactions between related parties | ||||||
Base salary | 985,064 | 864,000 | ||||
Annual incentive | 599,396 | 525,730 | ||||
Other | 339,005 | 297,341 | ||||
Share-based payments | 87,009 | 76,316 | ||||
Total compensation to directors and senior management | 2,010,474 | 1,763,387 | 0 | 0 | ||
Group CFO Trond Westlie | ||||||
Disclosure of transactions between related parties | ||||||
Base salary | 19,165 | 16,810 | 1,678,791 | 1,500,000 | ||
Annual incentive | 1,628,669 | 1,455,216 | ||||
Other | 242,425 | 212,631 | 26,973 | 24,100 | ||
Share-based payments | (247,497) | (217,080) | 72,571 | 64,842 | ||
Total compensation to directors and senior management | 14,093 | 12,361 | 3,407,004 | 3,044,158 | ||
Acting Group CFO Murat Kirkgoz | ||||||
Disclosure of transactions between related parties | ||||||
Base salary | 241,250 | 211,600 | 296,027 | 264,500 | ||
Annual incentive | 91,554 | 80,302 | 236,948 | 211,713 | ||
Other | 46,015 | 40,360 | 40,011 | 35,750 | ||
Share-based payments | (9,069) | (7,954) | 9,224 | 8,242 | ||
Total compensation to directors and senior management | 369,750 | 324,308 | 582,210 | 520,205 | ||
Group COO Kjell Johnsen | ||||||
Disclosure of transactions between related parties | ||||||
Base salary | 1,398,993 | 1,250,000 | ||||
Annual incentive | 4,683,106 | 4,184,355 | ||||
Other | 341,276 | 299,333 | 52,442 | 46,857 | ||
Share-based payments | (247,497) | (217,080) | (926,745) | (828,047) | ||
Total compensation to directors and senior management | 93,779 | 82,253 | 5,207,796 | 4,653,165 | ||
Group General Counsel Scott Dresser | ||||||
Disclosure of transactions between related parties | ||||||
Base salary | 1,482,157 | 1,300,000 | 1,454,952 | 1,300,000 | ||
Annual incentive | 2,622,278 | 2,300,000 | 2,528,128 | 2,258,882 | ||
Other | 27,477 | 24,100 | 32,569 | 29,100 | ||
Share-based payments | (74,708) | (65,526) | (780,642) | (697,504) | ||
Total compensation to directors and senior management | 4,057,204 | 3,558,574 | 3,235,007 | 2,890,478 | ||
Chief Strategy Officer Alex Kazbegi | ||||||
Disclosure of transactions between related parties | ||||||
Base salary | 631,057 | 553,500 | 441,852 | 394,795 | ||
Annual incentive | 385,792 | 338,378 | 783,436 | 700,000 | ||
Other | 118,714 | 104,124 | 758,435 | 677,662 | ||
Total compensation to directors and senior management | 1,135,563 | 996,002 | 1,983,723 | 1,772,457 | ||
Compliance Officer Joop Brakenhoff | ||||||
Disclosure of transactions between related parties | ||||||
Base salary | 255,501 | 224,100 | ||||
Annual incentive | 168,525 | 147,813 | ||||
Other | 45,500 | 39,908 | ||||
Share-based payments | 10,005 | 8,775 | ||||
Total compensation to directors and senior management | $ 479,531 | € 420,596 | $ 0 | € 0 |
RELATED PARTIES - Compensatio_3
RELATED PARTIES - Compensation to board of directors (Details) | Jun. 01, 2020director | May 31, 2020director | Dec. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019EUR (€) | Dec. 31, 2019USD ($) |
Disclosure of transactions between related parties | ||||||
Retainer | € 3,395,361 | $ 3,871,123 | € 1,962,708 | $ 2,196,655 | ||
Committees | 746,136 | 850,687 | 328,567 | 367,731 | ||
Other compensation | 500,000 | 570,060 | 750,000 | 839,396 | ||
Annual compensation for supervisory board | 4,641,497 | 5,291,870 | 3,041,275 | 3,403,782 | ||
Number of directors appointed | 5 | 7 | ||||
Hans Holger Albrecht | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 204,167 | 232,775 | ||||
Committees | 72,917 | 83,134 | ||||
Annual compensation for supervisory board | 277,084 | 315,909 | ||||
Guillaume Bacuvier | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 105,114 | 119,843 | 250,000 | 279,799 | ||
Committees | 23,125 | 26,365 | 53,909 | 60,335 | ||
Annual compensation for supervisory board | 128,239 | 146,208 | 303,909 | 340,134 | ||
Osama Bedier | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 308,333 | 351,537 | 250,000 | 279,799 | ||
Committees | 68,750 | 78,383 | 25,000 | 27,980 | ||
Annual compensation for supervisory board | 377,083 | 429,920 | 275,000 | 307,779 | ||
Ursula Burns | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 323,864 | 369,244 | ||||
Committees | 5,952 | 6,661 | ||||
Annual compensation for supervisory board | 323,864 | 369,244 | 5,952 | 6,661 | ||
Mariano De Beer | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 204,167 | 232,775 | ||||
Committees | 87,500 | 99,761 | ||||
Annual compensation for supervisory board | 291,667 | 332,536 | ||||
Peter Derby | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 204,167 | 232,775 | ||||
Committees | 87,500 | 99,761 | ||||
Annual compensation for supervisory board | 291,667 | 332,536 | 0 | 0 | ||
Mikhail Fridman | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 60,417 | 68,883 | 40,000 | 44,768 | ||
Annual compensation for supervisory board | 60,417 | 68,883 | 40,000 | 44,768 | ||
Gennady Gazin | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 629,167 | 717,326 | 250,000 | 279,799 | ||
Committees | 33,333 | 38,004 | 80,000 | 89,536 | ||
Annual compensation for supervisory board | 662,500 | 755,330 | 330,000 | 369,335 | ||
Amos Genish | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 204,167 | 232,775 | ||||
Committees | 87,500 | 99,761 | ||||
Annual compensation for supervisory board | 291,667 | 332,536 | ||||
Yaroslav Glazunov | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 13,350 | 15,221 | ||||
Annual compensation for supervisory board | 13,350 | 15,221 | ||||
Andrei Gusev | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 60,417 | 68,883 | 40,000 | 44,768 | ||
Other compensation | 500,000 | 570,060 | 750,000 | 839,396 | ||
Annual compensation for supervisory board | 560,417 | 638,943 | 790,000 | 884,164 | ||
Gunnar Holt | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 308,333 | 351,537 | 250,000 | 279,799 | ||
Committees | 118,750 | 135,389 | 69,643 | 77,944 | ||
Annual compensation for supervisory board | 427,083 | 486,926 | 319,643 | 357,743 | ||
Sir Julian Horn-Smith | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 105,114 | 119,843 | 250,000 | 279,799 | ||
Committees | 10,511 | 11,984 | 25,000 | 27,980 | ||
Annual compensation for supervisory board | 115,625 | 131,827 | 275,000 | 307,779 | ||
Robert Jan van de Kraats | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 308,333 | 351,537 | 250,000 | 279,799 | ||
Committees | 85,417 | 97,386 | 30,000 | 33,576 | ||
Annual compensation for supervisory board | 393,750 | 448,923 | 280,000 | 313,375 | ||
Guy Laurence | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 104,167 | 118,763 | 250,000 | 279,799 | ||
Committees | 12,500 | 14,252 | 30,000 | 33,576 | ||
Annual compensation for supervisory board | 116,667 | 133,015 | 280,000 | 313,375 | ||
Alexander Pertsovsky | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 47,917 | 54,631 | 40,000 | 44,768 | ||
Annual compensation for supervisory board | 47,917 | 54,631 | 40,000 | 44,768 | ||
Steve Pusey | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 204,167 | 232,775 | ||||
Committees | 58,333 | 66,507 | ||||
Annual compensation for supervisory board | € 262,500 | $ 299,282 | ||||
Kaan Terzioglu | ||||||
Disclosure of transactions between related parties | ||||||
Retainer | 92,708 | 103,758 | ||||
Committees | 9,063 | 10,143 | ||||
Annual compensation for supervisory board | € 101,771 | $ 113,901 |
EVENTS AFTER THE REPORTING PE_2
EVENTS AFTER THE REPORTING PERIOD (Details) $ in Millions, ৳ in Billions | 1 Months Ended | ||
Mar. 31, 2021USD ($)numberOfMegahertzextensionOption | Mar. 31, 2021BDT (৳)numberOfMegahertzextensionOption | Feb. 28, 2021numberOfMegahertz | |
Major purchases of asset | Banglalink Digital Communications Limited | |||
Disclosure of non-adjusting events after reporting period | |||
Spectrum cost | $ 115 | ৳ 10 | |
Frequency band spectrum | 40 | 40 | 30.6 |
Major purchases of asset | 1800 MHz spectrum | Banglalink Digital Communications Limited | |||
Disclosure of non-adjusting events after reporting period | |||
Frequency bands | 1,800 | 1,800 | |
Frequency band spectrum | 4.4 | 4.4 | |
Major purchases of asset | 2100 MHz spectrum | Banglalink Digital Communications Limited | |||
Disclosure of non-adjusting events after reporting period | |||
Frequency bands | 2,100 | 2,100 | |
Frequency band spectrum | 5 | 5 | |
Revolving credit facility | Borrowings transactions | |||
Disclosure of non-adjusting events after reporting period | |||
Facility amount | $ | $ 1,250 | ||
Borrowings term | 3 years | ||
Number of extension options | extensionOption | 2 | 2 | |
Borrowings extension option, term | 1 year | ||
Revolving credit facility | Borrowings transactions | One month | |||
Disclosure of non-adjusting events after reporting period | |||
Interest payment period | 1 month | ||
Revolving credit facility | Borrowings transactions | Three months | |||
Disclosure of non-adjusting events after reporting period | |||
Interest payment period | 3 months | ||
Revolving credit facility | Borrowings transactions | Six months | |||
Disclosure of non-adjusting events after reporting period | |||
Interest payment period | 6 months |
CONDENSED SEPARATE FINANCIAL _3
CONDENSED SEPARATE FINANCIAL INFORMATION OF VEON LTD - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2018 | |
Algeria | ||
Condensed Financial Statements, Captions [Line Items] | ||
Distributable profit percentage | 42.50% | |
Veon Ltd. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Restricted net assets of consolidated subsidiaries as percentage of consolidated net assets | 390.00% | 58.00% |
CONDENSED SEPARATE FINANCIAL _4
CONDENSED SEPARATE FINANCIAL INFORMATION OF VEON LTD - Condensed Statement of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Non-current assets | |||
Intangible assets | $ 4,152 | $ 5,688 | $ 5,655 |
Total non-current assets | 11,701 | 13,560 | |
Total current assets | 2,850 | 2,499 | |
Total assets | 14,551 | 16,059 | |
Equity | 163 | 1,226 | |
Total equity and liabilities | 14,551 | 16,059 | |
Veon Ltd. | |||
Non-current assets | |||
Intangible assets | 8 | 10 | 9 |
Tangible fixed assets | 8 | 15 | 4 |
Financial fixed assets | 138 | 1,152 | 3,590 |
Total non-current assets | 154 | 1,177 | 3,603 |
Total current assets | 320 | 393 | 435 |
Total assets | 474 | 1,570 | 4,038 |
Equity | 163 | 1,226 | 3,670 |
Total liabilities | 311 | 344 | 368 |
Total equity and liabilities | $ 474 | $ 1,570 | $ 4,038 |
CONDENSED SEPARATE FINANCIAL _5
CONDENSED SEPARATE FINANCIAL INFORMATION OF VEON LTD - Condensed Income Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | |||
Selling, general and administrative expenses | $ (2,641) | $ (2,965) | $ (3,697) |
Operating (loss) / profit | 635 | 2,019 | 554 |
Income tax | (342) | (498) | (369) |
Total non-operating income and expenses | 111 | 21 | (68) |
Veon Ltd. | |||
Condensed Income Statements, Captions [Line Items] | |||
Selling, general and administrative expenses | (101) | (160) | (240) |
Other gains (losses) | 0 | 350 | 0 |
Recharged expenses to group companies | 3 | 21 | 47 |
Operating (loss) / profit | (98) | 211 | (193) |
Finance income and (costs) | (2) | 6 | 4 |
Share in result of subsidiaries after tax | (249) | 404 | 771 |
Income tax | 0 | 0 | (1) |
Total non-operating income and expenses | (251) | 410 | 774 |
Profit / (loss) for the year | $ (349) | $ 621 | $ 581 |
CONDENSED SEPARATE FINANCIAL _6
CONDENSED SEPARATE FINANCIAL INFORMATION OF VEON LTD - Condensed Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | |||
Total comprehensive income (loss) for the year, net of tax | $ (857) | $ 739 | $ (525) |
Veon Ltd. | |||
Condensed Statement of Income Captions [Line Items] | |||
Total comprehensive income (loss) for the year, net of tax | $ (800) | $ 733 | $ (138) |
CONDENSED SEPARATE FINANCIAL _7
CONDENSED SEPARATE FINANCIAL INFORMATION OF VEON LTD - Condensed Statement of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | $ 2,443 | $ 2,949 | $ 2,515 | |
Investing activities | ||||
Other cash flows from investing activities | 30 | 28 | 19 | |
Net cash flows from / (used in) investing activities | (1,910) | (1,888) | 1,997 | |
Financing activities | ||||
Proceeds from borrowings, net of fees paid | [1] | 4,621 | 2,610 | 807 |
Repayment of debt | (4,376) | (2,978) | (4,122) | |
Dividends paid to equity owners of the parent | (259) | (520) | (508) | |
Net cash flows from / (used in) financing activities | (103) | (1,639) | (3,916) | |
Net increase / (decrease) in cash and cash equivalents | 430 | (578) | 596 | |
Net foreign exchange difference | (48) | (9) | (119) | |
Cash and cash equivalents at beginning of period | 1,250 | |||
Cash and cash equivalents at end of period | 1,594 | 1,250 | ||
Veon Ltd. | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net cash flows from operating activities | (13) | (213) | 23 | |
Investing activities | ||||
Receipt of dividends | 0 | 0 | 571 | |
Receipt of capital surplus from a subsidiary | 317 | 650 | 0 | |
Other cash flows from investing activities | 0 | 101 | (76) | |
Net cash flows from / (used in) investing activities | 317 | 751 | 495 | |
Financing activities | ||||
Proceeds from borrowings, net of fees paid | 0 | 0 | 0 | |
Repayment of debt | 0 | 0 | 0 | |
Dividends paid to equity owners of the parent | (260) | (522) | (505) | |
Share capital issued and paid | 0 | 0 | 0 | |
Net cash flows from / (used in) financing activities | (260) | (522) | (505) | |
Net increase / (decrease) in cash and cash equivalents | 44 | 16 | 13 | |
Net foreign exchange difference | 0 | 0 | 1 | |
Cash and cash equivalents at beginning of period | 35 | 19 | 5 | |
Cash and cash equivalents at end of period | $ 79 | $ 35 | $ 19 | |
[1] | Fees paid for borrowings were US$29 (2019: US$23, 2018: US$64) |
Uncategorized Items - vip-20201
Label | Element | Value |
Material reconciling items [member] | Material reconciling items [member] | ||
Other revenue | ifrs-full_OtherRevenue | $ (2,000,000) |
Other revenue | ifrs-full_OtherRevenue | 0 |
Other revenue | ifrs-full_OtherRevenue | 0 |
Revenue | ifrs-full_Revenue | (41,000,000) |
Revenue | ifrs-full_Revenue | (37,000,000) |
Revenue | ifrs-full_Revenue | (33,000,000) |
Revenue from sale of goods | ifrs-full_RevenueFromSaleOfGoods | 0 |
Revenue from sale of goods | ifrs-full_RevenueFromSaleOfGoods | 0 |
Revenue from sale of goods | ifrs-full_RevenueFromSaleOfGoods | 0 |
Mobile [Member] | Material reconciling items [member] | Material reconciling items [member] | ||
Revenue from rendering of services | ifrs-full_RevenueFromRenderingOfServices | (37,000,000) |
Revenue from rendering of services | ifrs-full_RevenueFromRenderingOfServices | (31,000,000) |
Revenue from rendering of services | ifrs-full_RevenueFromRenderingOfServices | (41,000,000) |
Fixed [Member] | Material reconciling items [member] | Material reconciling items [member] | ||
Revenue from rendering of services | ifrs-full_RevenueFromRenderingOfServices | 0 |
Revenue from rendering of services | ifrs-full_RevenueFromRenderingOfServices | 0 |
Revenue from rendering of services | ifrs-full_RevenueFromRenderingOfServices | $ 0 |