Altice Europe N : NV - Q3 2020 Consolidated Financial Statements

Altice Europe N.V.

Condensed Interim Consolidated

Financial Statements

As of and for the three and nine-month periods ended

September 30, 2020

Table of Contents

Consolidated Statement of Income	1
Consolidated Statement of Comprehensive Income	1
Consolidated Statement of Financial Position	2
Consolidated Statement of Changes in Equity	3
Consolidated Statement of Cash Flows	4
Notes to the Condensed Interim Consolidated Financial Statements	6
1	About Altice Europe N.V.	6
2	Accounting policies	6
3	Significant events	8
4	Segment reporting	11
5	Goodwill	17
6	Associates and joint ventures	18
7	Financial assets	18
8	Other non-current assets	19
9	Shareholders' equity	19
10	Earnings per share	20
11	Borrowings, other financial liabilities and lease liabilities	21
12	Fair value of financial assets and liabilities	28
13	Other non-current liabilities	30
14	Taxation	30
15	Net finance costs	31
16	Contractual obligations and commercial commitments	31
17	Litigation	31
18	Going concern	34
19	Events after the reporting period	35
20	Restated information	36

Altice Europe N.V.

Condensed Interim Consolidated Financial Statements

Consolidated Statement of Income	Notes		Unaudited & not reviewed
		Three months ended	Nine months ended
		September 30,	September 30,	September 30,	September 30,
		2020	2019	2020	2019
(€m)						(*restated)
Revenues	4	3,765.1	3,659.5	10,930.6	10,763.8
Purchasing and subcontracting costs	4	(1,019.4)	(950.4)	(2,903.1)	(2,828.4)
Other operating expenses	4	(638.8)	(722.8)	(1,976.7)	(2,043.3)
Staff costs and employee benefits	4	(391.2)	(376.8)	(1,103.7)	(1,131.6)
Depreciation, amortization and		(1,258.7)	(1,171.1)	(3,722.5)	(3,798.6)
impairment	4
Other (expenses) and income	4	(79.9)	(115.0)	(113.1)	1,654.2
Operating profit	4	377.1	323.4	1,111.5	2,616.1
Interest relative to gross financial debt	15	(401.4)	(486.5)	(1,275.1)	(1,530.4)
Realized and unrealized (losses)/gains
on derivative instruments linked to	15	(449.7)	247.1	(109.8)	679.2
financial debt
Other financial expenses	15	(58.5)	(236.5)	(201.5)	(801.0)
Finance income	15	235.6	24.9	55.5	35.0
Net result on extinguishment and	15	(15.1)	(78.4)	(215.4)	(206.2)
remeasurement of financial liabilities
Finance costs, net	15	(689.1)	(529.4)	(1,746.3)	(1,823.4)
Share of loss of associates and joint	6	(70.6)	(54.3)	(199.6)	(123.3)
ventures
(Loss)/profit before income tax		(382.6)	(260.3)	(834.4)	669.4
Income tax (expense)/benefit	14	24.5	0.5	(107.1)	59.2
(Loss)/profit for the period		(358.1)	(259.8)	(941.5)	728.6
Attributable to equity holders of the		(393.2)	(270.5)	(1,019.6)	691.1
parent
Attributable to non‑controlling interests		35.1	10.6	78.1	37.5
Earnings per share
(Loss)/earnings per share (basic)	10	(0.3)	(0.2)	(0.9)	0.6
(Loss)/earnings per share (diluted)	10	(0.3)	(0.2)	(0.9)	0.5
Consolidated Statement of Comprehensive Income		Unaudited & not reviewed
		Three months ended	Nine months ended
		September 30,	September 30,	September 30,		September 30,
		2020	2019	2020		2019
(€m)						(*restated)
(Loss)/profit for the period		(358.1)	(259.8)	(941.5)		728.6
Other comprehensive (loss)/income
Items that may be reclassified subsequently to profit or
loss
Exchange differences on translating foreign operations	(8.9)	33.6	1.6		(12.5)
Cash flow hedges - effective portion of changes in fair value	(11.7)	28.0	26.9		32.9
Cash flow hedges - reclassified to profit or loss		16.0	54.2	192.6		203.3
Related taxes		(1.2)	(15.6)	(65.4)		(61.1)
Item that will not be reclassified subsequently to profit or
loss
Change of fair value of equity instruments at fair value	1.1	92.8	(71.9)		258.8
through OCI
Actuarial gain/(loss)		(26.9)	(28.0)	3.2		(87.8)
Related taxes		9.1	8.8	(0.7)		27.6
Total other comprehensive (loss)/income		(22.5)	173.8	86.3		361.2
Total comprehensive (loss)/income for the period	(380.6)	(86.0)	(855.2)		1,089.8
Attributable to equity holders of the parent		(415.3)	(98.3)	(932.3)		1,050.1
Attributable to non‑controlling interests		34.7	12.2	77.1		39.7

1. Previously published information has been restated to take into account the impact from capital gain correction of SFR FTTH. Please refer to note 20 for the reconciliation to previously published results.

The accompanying notes on pages 6 to 37 form an integral part of these condensed interim consolidated financial statements.

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Altice Europe N.V.

Condensed Interim Consolidated Financial Statements

Consolidated Statement of Financial Position	Notes	Unaudited & not reviewed
		As of	As of
(€m)		September 30, 2020	December 31, 2019
Non‑current assets
Goodwill	5	14,498.5	14,655.5
Other intangible assets		6,517.9	7,458.4
Property, plant & equipment		9,891.3	9,974.6
Right-of-use assets		4,292.4	4,289.8
Contract costs		256.0	263.8
Investment in associates and joint ventures	6	1,388.1	1,567.4
Financial assets	7	711.9	1,626.7
Deferred tax assets		291.1	300.2
Other non-current assets	8	759.1	439.6
Total non‑current assets		38,606.3	40,576.0
Current assets
Inventories		553.6	479.4
Contract assets		228.0	254.1
Trade and other receivables		4,776.4	4,463.7
Current tax assets		216.3	99.8
Financial assets	7	133.8	47.8
Cash and cash equivalents		955.2	1,022.1
Restricted cash		36.3	119.5
		6,899.6	6,486.4
Assets classified as held for sale	3.5	4.8	119.0
Total current assets		6,904.4	6,605.4
Total assets		45,510.7	47,181.4
Equity
Issued capital	9.1	59.5	59.5
Treasury shares	9.2	(0.4)	(0.4)
Additional paid in capital		5.7	5.7
Other reserves	9.3	(567.5)	(500.5)
Accumulated losses		(1,907.4)	(2,098.9)
Equity attributable to equity holders of the parent		(2,410.1)	(2,534.6)
Non‑controlling interests	3.4	278.6	213.7
Total equity		(2,131.5)	(2,320.9)
Non‑current liabilities
Long-term borrowings, financial liabilities and related hedging instruments	11	30,405.2	32,101.9
Other financial liabilities	11.7	1,130.5	476.2
Non-current lease liabilities	11	3,655.4	3,644.6
Provisions		1,418.5	1,441.8
Deferred tax liabilities		126.5	164.6
Non-current contract liabilities		558.9	588.4
Other non-current liabilities	13	52.7	233.0
Total non‑current liabilities		37,347.7	38,650.5
Current liabilities
Short-term borrowings, financial liabilities and related hedging instruments	11	73.8	432.7
Other financial liabilities	11.7	1,668.2	1,822.3
Current lease liabilities	11	789.7	758.4
Trade and other payables		6,442.7	6,486.6
Contract liabilities		637.5	614.3
Current tax liabilities		261.9	261.4
Provisions		220.8	227.9
Other current liabilities	13	196.7	247.9
		10,291.3	10,851.5
Liabilities directly associated with assets classified as held for sale	3.5	3.2	0.3
Total current liabilities		10,294.5	10,851.8
Total liabilities		47,642.2	49,502.3
Total equity and liabilities		45,510.7	47,181.4

The accompanying notes on pages 6 to 37 form an integral part of these condensed interim consolidated financial statements.

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