PJSC VimpelCom: Interim condensed consolidated financial statements as of 30 September 2020 and for the three and nine months ended 30 September 2020

Unaudited interim condensed

consolidated financial statements

Public Joint Stock Company "Vimpel-Communications"

as of 30 September 2020 and

for the three and nine months ended 30 September 2020

	Public Joint Stock Company "Vimpel-Communications"
	Unaudited interim condensed consolidated financial statements
	as of 30 September 2020 and for the three and nine months ended
	30 September 2020
	Contents
Report on Review of Interim Condensed Consolidated Financial Statements
Interim consolidated income statement for the three and nine months ended 30 September 2020..................	1
Interim consolidated statement of comprehensive income for the three and nine months ended
30 September 2020.........................................................................................................................................................	2
Interim consolidated statement of financial position as of 30 September 2020 .................................................	3
Interim consolidated statement of changes in equity for the nine months ended 30 September 2020 .............	4
Interim consolidated statement of changes in equity for the nine months ended 30 September 2019 .............	4
Interim consolidated statement of cash flows for the nine months ended 30 September 2020.........................	5
Notes to the unaudited interim condensed consolidated financial statements as of 30 September 2020 and for
the three and nine months ended 30 September 2020:
1.	General information..................................................................................................................................	6
Operating activities of the Group ...................................................................................................................	7
2.	Segment information ................................................................................................................................	7
3.	Selling, general and administrative expenses..........................................................................................	9
4.	Impairment .............................................................................................................................................	10
5.	Other non-operating gain / (loss), net ....................................................................................................	11
6.	Income taxes ..........................................................................................................................................	12
7.	Inventories..............................................................................................................................................	12
8.	Other assets and liabilities .....................................................................................................................	13
Investing activities of the Group...................................................................................................................	13
9.	Property and equipment .........................................................................................................................	13
10.	Intangible assets ....................................................................................................................................	14
11.	Transactions under common control......................................................................................................	15
Financing activities of the Group .................................................................................................................	16
12.	Financial assets and liabilities................................................................................................................	16
13.	Cash and cash equivalents ....................................................................................................................	18
Additional information ...................................................................................................................................	19
14.	Related parties .......................................................................................................................................	19
15.	Risks, commitments, contingencies and uncertainties ..........................................................................	22
16.	Events after the reporting period............................................................................................................	22
17.	Basis of preparation of the interim condensed consolidated financial statements ................................	23

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 September 2020 and the related interim consolidated income statements and statements of comprehensive income for the three and nine-month periods then ended, changes in equity and cash flows for the nine-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".

18 November 2020

Moscow, Russian Federation

E.V. Klimenko, certified auditor (licence no. 01-000057), 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 Nо. 008.890
Taxpayer Identification Number 7713076301	Record made in the Unified State Register of Legal Entities
Address: 10 bld 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.ru

Public Joint Stock Company "Vimpel-Communications"

Interim consolidated income statement

for the three and nine months ended 30 September 2020

(All amounts in millions of Rubles)

			Three months ended	Nine months ended
			30 September	30 September
			2020	2019	2020	2019
Service revenue	Note	(unaudited)	(unaudited)	(unaudited)	(unaudited)
		75,596	80,924	223,687	236,404
Sale of equipment and accessories			7,657	7,699	18,282	20,488
Other revenue			356	283	1,029	3,526
Total operating revenue	2		83,609	88,906	242,998	260,418
Other operating income			105	-	235	-
Service costs			(19,776)	(18,355)	(55,983)	(53,536)
Cost of equipment and accessories			(6,999)	(7,398)	(17,749)	(20,270)
Selling, general and administrative expenses			(24,398)		(74,552)
(including impairment loss on financial assets)	3		(24,377)	(72,737)
Depreciation	9		(18,153)	(17,571)	(54,139)	(53,048)
Amortization	10		(3,005)	(2,756)	(8,934)	(7,857)
Impairment loss	4		(10,479)	(5,823)	(10,411)	(6,284)
Loss on disposal of non-current assets			(211)	(778)	(721)	(1,597)
Operating profit			693	11,848	20,744	45,089
Finance costs			(5,486)	(7,107)	(18,651)	(21,033)
Finance income			330	930	2,297	2,682
Foreign exchange loss, net			(3,184)	(965)	(8,827)	(1,173)
Other non-operating gain / (loss), net	5		148	265	1,823	(2,724)
(Loss) / profit before tax			(7,499)	4,971	(2,614)	22,841
Income tax expense	6		(588)	(3,037)	(3,410)	(7,441)
(Loss) / profit for the period			(8,087)	1,934	(6,024)	15,400
Attributable to:			(5,519)		(2,486)
The owners of the Company			4,885	18,137
Non-controlling interests			(2,568)	(2,951)	(3,538)	(2,737)
			(8,087)	1,934	(6,024)	15,400

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

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