PJSC VimpelCom: Interim condensed consolidated financial statements as of 30 June 2021 and for the three and six months ended 30 June 2021

Unaudited interim condensed

consolidated financial statements

Public Joint Stock Company "Vimpel-Communications"

as of 30 June 2021 and

for the three and six months ended 30 June 2021

	Public Joint Stock Company "Vimpel-Communications"
	Unaudited interim condensed consolidated financial statements
	as of 30 June 2021 and for the three and six months ended 30 June 2021
	Contents
Report on Review of Interim Condensed Consolidated Financial Statements
Interim consolidated income statement for the three and six months ended 30 June 2021 ..............................	1
Interim consolidated statement of comprehensive income for the three and six months ended 30 June 2021.........	2
Interim consolidated statement of financial position as of 30 June 2021...........................................................	3
Interim consolidated statement of changes in equity for the six months ended 30 June 2021..........................	4
Interim consolidated statement of changes in equity for the six months ended 30 June 2020..........................	4
Interim consolidated statement of cash flows for the six months ended 30 June 2021 .....................................	5
Notes to the unaudited interim condensed consolidated financial statements as of 30 June 2021 and for the
three and six months ended 30 June 2021:
1.	General information..................................................................................................................................	6
Operating activities of the Group ...................................................................................................................	6
2.	Segment information ................................................................................................................................	6
3.	Selling, general and administrative expenses..........................................................................................	9
4.	Other non-operating gain / (loss), net ......................................................................................................	9
5.	Income taxes ..........................................................................................................................................	10
6.	Inventories..............................................................................................................................................	10
7.	Other assets and liabilities .....................................................................................................................	11
Investing activities of the Group...................................................................................................................	12
8.	Property and equipment .........................................................................................................................	12
9.	Intangible assets ....................................................................................................................................	12
10.	Transactions under common control......................................................................................................	13
Financing activities of the Group .................................................................................................................	15
11.	Financial assets and liabilities................................................................................................................	15
12.	Cash and cash equivalents ....................................................................................................................	17
Additional information ...................................................................................................................................	17
13.	Related parties .......................................................................................................................................	17
14.	Risks, commitments, contingencies and uncertainties ..........................................................................	20
15.	Events after the reporting period............................................................................................................	20
16.	Basis of preparation of the interim condensed consolidated financial statements ................................	21

pwc

Report on Review of Interim Condensed Consolidated Financial Statements

To the Shareholders and Board of Directors of Public Joint Stock Company "Vimpel-Communications":

Introduction

We have reviewed the accompanying interim consolidated statement of financial position of Public Joint Stock Company "Vimpel-Communications" and its subsidiaries (together - the "VimpelCom") as at 30 June 2021 and the related interim consolidated income statements and statements of comprehensive income for the three and six-month periods then ended, changes in equity and cash flows for the six-month period then ended, and the related explanatory notes. Management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Accounting Standard 34, "Interim Financial Reporting". Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34, "Interim Financial Reporting".

on

auditor (licence No. 01-000399), AO PricewaterhouseCoopers Audit

Audited entity:Public Joint Stock Company Vimpel-Communications	Independent auditor: AO PricewaterhouseCoopers Audit
Record made in the Unified State Register of Legal Entities	Registered by the Government Agency Moscow Registration Chamber
on 28 August 2002 under State Registration Number 1027700166636	on 28 February 1992 under No. 008.890
Taxpayer Identification Number 7713076301	Record made in the Unified State Register of Legal Entities
10 bid 14 8th Marta, Moscow, Russian Federation,127083	on 22 August 2002 under State Registration Number 1027700148431
Taxpayer Identification Number 7705051102
	Member of Self-regulatory organization of auditors Association
	"Sodruzhestvo"
	Principal Registration Number of the Record in the Register of Auditors
	and Audit Organizations - 12006020338

AO PricewaterhouseCoopers Audit

White Square Office Center, 10 Butyrsky Val, Moscow, Russia 125047

T: [phone], F: [phone], www.pwc.com

Public Joint Stock Company "Vimpel-Communications"

Interim consolidated income statement

for the three and six months ended 30 June 2021

(All amounts in millions of Rubles)

			Three months ended	Six months ended
			30 June	30 June
			2021	2020	2021	2020
Service revenue	Note	(unaudited)	(unaudited)	(unaudited)	(unaudited)
		75,766	73,365	149,050	148,091
Sale of equipment and accessories			7,395	4,988	14,817	10,625
Other revenue			344	137	712	673
Total operating revenue	2		83,505	78,490	164,579	159,389
Other operating income	13		1,459	130	1,486	130
Service costs			(19,727)	(18,780)	(38,880)	(36,207)
Cost of equipment and accessories			(7,296)	(5,053)	(14,413)	(10,750)
Selling, general and administrative expenses			(24,915)		(48,209)
(including impairment loss on financial assets)	3		(25,420)	(50,154)
Depreciation	8		(18,745)	(18,048)	(37,652)	(35,986)
Amortization	9		(2,677)	(2,999)	(5,191)	(5,929)
Impairment (loss) / reversal of impairment loss			(28)	-	(111)	68
Loss on disposal of non-current assets			(252)	(258)	(628)	(510)
Operating profit			11,324	8,062	20,981	20,051
Finance costs			(5,107)	(6,382)	(10,700)	(13,165)
Finance income			480	869	949	1,967
Foreign exchange gain / (loss), net			108	2,750	614	(5,643)
Other non-operating gain / (loss), net	4		112	(2,304)	305	1,675
Profit before tax			6,917	2,995	12,149	4,885
Income tax expense	5		(1,419)	(1,599)	(3,490)	(2,822)
Profit for the period			5,498	1,396	8,659	2,063
Profit for the period attributable to:			4,476		6,493
The owners of the Company			750	3,033
Non-controlling interests			1,022	646	2,166	(970)
			5,498	1,396	8,659	2,063

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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Public Joint Stock Company "Vimpel-Communications"

Interim consolidated statement of comprehensive income

for the three and six months ended 30 June 2021

(All amounts in millions of Rubles)

		Three months ended	Six months ended
		30 June	30 June
		2021	2020	2021	2020
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
Profit for the period	5,498	1,396	8,659	2,063
Other comprehensive income / (loss)
Items that may be reclassified subsequently to profit or
loss:
Foreign currency translation reserve arising on exchange	(2,383)		(1,522)
differences on translation of foreign operations	(3,171)	2,620
Other comprehensive (loss) / income for the period,
net of tax	(2,383)	(3,171)	(1,522)	2,620
Total comprehensive income / (loss) for the period,
net of tax	3,115	(1,775)	7,137	4,683
Attributable to:	2,500		5,632
The owners of the Company	(2,431)	5,581
Non-controlling interests	615	656	1,505	(898)
		3,115	(1,775)	7,137	4,683

The accompanying notes are an integral part of these interim condensed consolidated financial statements.

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