Mobile TeleSystems Public Joint Stock : Q4 2019 Press Release

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MOBILE TELESYSTEMS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of December 31, 2019 and As of December 31, 2018

(Amounts in millions of RUB)

	As of December 31,	As of December 31,
	2019	2018
NON-CURRENT ASSETS:
Property, plant and equipment	265,479	276,443
Investment property	2,986	2,177
Right-of-use assets	138,817	149,007
Intangible assets	118,404	135,069
Investments in associates and joint ventures	6,450	10,735
Deferred tax assets	9,975	11,190
Other non-currentnon-financial assets	4,981	5,038
Bank deposits and loans	53,472	30,653
Other investments	11,195	16,873
Accounts receivable (related parties)	10,787	2,545
Other non-current financial assets	6,776	7,329
Total non-current assets	629,322	647,059
CURRENT ASSETS:
Inventories	15,515	18,654
Trade and other receivables	35,595	34,543
Accounts receivable (related parties)	5,872	6,385
Bank deposits and loans	39,370	32,385
Short-term investments	25,618	47,863
VAT receivable	9,350	7,415
Income tax assets	4,301	3,887
Assets held for sale	497	2,694
Advances paid and prepaid expenses and other non financial current assets	5,842	5,546
Other financial current assets	14,558	25,487
Cash and cash equivalents	38,070	84,075
Total current assets	194,588	268,934
Total assets	823,910	915,993
EQUITY:
Equity attributable to owners of the Company	33,068	65,274
Non-controlling interests	3,326	12,291
Total equity	36,394	77,565
NON-CURRENT LIABILITIES:
Borrowings	271,573	365,072
Lease obligations	140,080	144,740
Deferred tax liabilities	17,866	24,439
Provisions	4,761	3,391
Bank deposits and liabilities	1,805	2,633
Other non-current financial liabilities	955	481
Other non-currentnon-financial and contract liabilities	2,019	2,201
Total non-current liabilities	439,059	542,957
CURRENT LIABILITIES:
Borrowings	71,746	3,063
Lease obligations	15,228	15,812
Provisions	11,526	70,911
Trade and other payables	71,808	53,623

Accounts payable (related parties)	558	1,301
Bank deposits and liabilities	136,147	108,821
Income tax liabilities	784	1,792
Other current financial liabilities	1,424	4,648
Other current non-financial and contract liabilities	39,236	35,500
Total current liabilities	348,457	295,471
Total equity and liabilities	823,910	915,993

MOBILE TELESYSTEMS

CONSOLIDATED STATEMENTS OF COMPREHENSIVE

INCOME

FOR THE THREE AND TWELVE MONTHS ENDED

DECEMBER 31, 2019 AND 2018

(Amounts in millions of RUB except per share amount)

	Twelve	Twelve	Three months	Three months
	months ended	months ended	ended	ended
	December 31,	December 31,	December 31,	December 31,
	2019	2018	2019	2018
Service revenue	406,839	382,698	105,419	100,616
Sales of goods	69,267	68,768	21,644	21,406
Revenue	476,106	451,466	127,063	122,022
Cost of services	(114,995)	(104,929)	(29,303)	(28,314)
Cost of goods	(63,889)	(63,253)	(19,346)	(19,603)
Selling, general and administrative expenses	(90,796)	(83,427)	(25,268)	(23,314)
Depreciation and amortization	(96,279)	(95,386)	(24,468)	(23,926)
Other operating (expenses) / income	(690)	900	(2,591)	(631)
Operating share of the profit of associates and joint ventures	4,583	3,799	1,083	989
Impairment of non-current assets	148	(149)	148	(149)
Operating profit	114,188	109,021	27,318	27,074
Currency exchange gains / (loss)	2,106	(4,043)	403	(1,009)
Other (expenses)/income:
Finance income	4,356	5,587	732	1,971
Finance costs	(47,368)	(36,988)	(11,761)	(11,704)
Other (expenses) / income	(6,409)	3,542	(3,318)	1,339
Total other expenses, net	(49,421)	(27,859)	(14,347)	(8,394)
Profit before tax from continuing operations	66,873	77,119	13,374	17,671
Income tax expense	(15,750)	(15,395)	(3,183)	(1,401)
Profit for the period from continuing operations	51,123	61,724	10,191	16,270
Discontinued operation:
Profit/(Loss) after tax for the period from discontinued
operation	3,976	(53,892)	(4,453)	(2,043)

Profit for the period

Profit for the period attributable to non-controlling interests

Profit for the period attributable to owners of the Company

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss

Unrecognised actuarial gain / (loss)

Items that may be reclassified subsequently to profit or loss

Exchange differences on translating foreign operations

Net fair value (loss) / gain on financial instruments

Other comprehensive income for the period

Total comprehensive income for the period

Less comprehensive income for the period attributable to the noncontrolling interests

Comprehensive income for the period attributable to owners of the Company

Weighted average number of common shares outstanding, in thousands - basic

Earnings per share attributable to the Group - basiс:

EPS from continuing operations

EPS from discontinued operation

Total EPS - basic

Weighted average number of common shares outstanding, in thousands - diluted

Earnings per share attributable to the Group - diluted:

EPS from continuing operations

EPS from discontinued operation

Total EPS - diluted

55,099	7,832	5,738	14,227
(858)	(984)	(193)	(65)
54,241	6,848	5,545	14,162

-	167	-	(61)
8,668	7,735	7,724	2,815
(237)	(103)	-	451
8,431	7,799	7,724	3,205
63,530	15,631	13,461	17,432
(858)	(993)	(194)	(62)
62,672	14,638	13,267	17,370
1,780,935	1,873,563	1,772,834	1,837,425
28.22	32.42	5.64	8.82
2.23	(28.76)	(2.51)	(1.11)
30.45	3.66	3.13	7.71
1,783,617	1,875,721	1,774,448	1,839,147
28.18	32.38	5.63	8.81
2.23	(28.73)	(2.51)	(1.11)
30.41	3.65	3.12	7.70

MOBILE TELESYSTEMS

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2019 AND 2018

(Amounts in millions of RUB)
	Twelve months ended	Twelve months ended
	December 31, 2019	December 31, 2018
Profit for the period	55,099	7,832
Adjustments for:
Depreciation and amortization	106,948	104,588
Finance income	(4,805)	(5,981)
Finance costs	48,711	38,165
Income tax expense	17,671	16,969
Currency exchange (gain) / loss	(5,628)	6,892
Change in fair value of financial instruments	7,412	(5,385)
Share of the profit of associates	(8,079)	(2,889)
Inventory obsolescence expense	2,207	3,326
Allowance for doubtful accounts	3,432	3,201
Bank reserves	4,329	493
Change in provisions	305	(1,473)
Provision for liability with respect to SEC and DOJ investigation	-	55,752
Loss from sale of Ukraine operations	5,499	-
Impairment of non-current assets	(148)	149
Other non-cash items	(6,882)	(3,479)
Movements in operating assets and liabilities:
(Increase)/Decrease in trade and other receivables and contract assets	(3,808)	438
Increase in bank deposits and loans	(34,452)	(15,367)
Decrease/(Increase) in inventory	3	(11,292)
(Increase)/Decrease in VAT receivable	(2,522)	72
Decrease in advances paid and prepaid expenses	3,478	1,429
Increase/(Decrease) in trade and other payables, contract liabilities and other
liabilities	6,825	(59)
Increase in bank deposits and liabilities	27,823	4,100
Payment of fines and penalties related to SEC investigation into former
operations in Uzbekistan	(55,607)	-
Dividends received	3,707	3,726
Income taxes paid	(23,943)	(19,777)
Interest received	5,263	10,016
Interest paid, net of interest capitalised	(46,186)	(37,056)
Net cash provided by operating activities	106,652	154,390
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of subsidiary, net of cash acquired	(2,052)	(3,444)
Purchases of property, plant and equipment	(68,465)	(64,731)
Purchases of other intangible assets	(23,016)	(21,751)

Cost to obtain and fulfill contracts	(4,651)	(4,764)
Purchases of 4G licenses in Ukraine and Armenia	(255)	(5,527)
Purchase of Avantage	-	(7,559)
Proceeds from sale of property, plant and equipment and assets held for sale	6,536	5,905
Purchases of short-term and other investments	(22,714)	(18,754)
Proceeds from sale of short-term and other investments	47,139	38,596
Investments in associates	(75)	(3,871)
Cash payments and proceeds related to SWAP contracts	(2,459)	6,892
Proceeds from sale of subsidiaries	37,386	619
Proceeds from sale / liquidation of associates	3,067	-
Other investing activities	5	-
Net cash used in investing activities	(29,554)	(78,389)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash flows from transactions under common control	(15,312)	(13,242)
Repayment of loans	(156,511)	(20,076)
Proceeds from loans	62,415	95,000
Repayment of notes	(189)	(27,983)
Proceeds from issuance of notes	72,500	27,550
Notes and debt issuance cost paid	(111)	(39)
Lease obligation principal paid	(15,154)	(13,577)
Dividends paid	(52,505)	(50,054)
Cash outflow under credit guarantee agreement related to foreign-currency
hedge	-	(981)
Repurchase of own shares	(15,922)	(22,655)
Other financing activities	341	133
Net cash used in financing activities	(120,448)	(25,924)
Effect of exchange rate changes on cash and cash equivalents	(2,655)	3,412
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS:	(46,005)	53,489
CASH AND CASH EQUIVALENTS, at beginning of the period	84,075	30,586
CASH AND CASH EQUIVALENTS, at end of the period	38,070	84,075