VEON : Special purpose consolidated financial statements VEON Holdings B.V. as of and for the year ended December 31, 2020

Special purpose

Consolidated financial statements

VEON Holdings B.V.

(a wholly-owned subsidiary of VEON Ltd.)

As of and for the year ended

December 31, 2021

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Table of Contents

Consolidated income statement	5
Consolidated statement of comprehensive income	6
Consolidated statement of financial position	7
Consolidated statement of changes in equity	8
Consolidated statement of cash flows	9
General information about the Group	10
1	General information	10
Operating activities of the Group	12
2	Segment information	12
3	Operating revenue	13
4	Selling, general and administrative expenses	15
5	Trade and other receivables	16
6	Other assets and liabilities	18
7	Provisions and contingent liabilities	19
8	Income taxes	22
Investing activities of the Group	27
9	Significant transactions	27
10	Held for Sale and Discontinued Operations	28
11	Impairment of assets	30
12	Property and equipment	34
13	Intangible assets	37
14	Investments in subsidiaries	39
Financing activities of the Group	42
15	Other non-operating gain / (loss)	42
16	Investments, debt and derivatives	43
17	Cash and cash equivalents	53
18	Financial risk management	54
19	Issued capital and reserves	59
20	Dividends paid and proposed	60
Additional information	61
21	Related parties	62
22	Events after the reporting period	71
23	Basis of preparation of the consolidated financial statements	73
24	Significant accounting policies	77

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CONSOLIDATED INCOME STATEMENT

for the years ended December 31

	Note	2021	2020*
(In millions of U.S. dollars)
Service revenues		7,128	6,786
Sale of equipment and accessories		508	388
Other revenues		134	117
Total operating revenues	3	7,770	7,291
Other operating income		5	4
Service costs		(1,379)	(1,334)
Cost of equipment and accessories		(487)	(378)
Selling, general and administrative expenses	4	(2,435)	(2,282)
Depreciation	12	(1,542)	(1,429)
Amortization	13	(302)	(306)
Impairment (loss) / reversal	11	(20)	(784)
Gain / (loss) on disposal of non-current assets		(13)	(37)
Gain / (loss) on disposal of subsidiaries	9	101	(78)
Operating profit		1,698	667
Finance costs		(702)	(677)
Finance income		28	64
Other non-operating gain / (loss)	15	12	111
Net foreign exchange gain / (loss)		4	(49)
Profit / (loss) before tax from continuing operations		1,040	116
Income tax expense	8	(255)	(316)
Profit / (loss) from continuing operations		785	(200)
Profit / (loss) after tax from discontinued operations	10	151	79
Profit / (loss) for the period		936	(121)
Attributable to:
The owners of the parent (continuing operations)		740	(190)
The owners of the parent (discontinued operations)		69	36
Non-controlling interest		127	33
		936	(121)

• Prior year comparatives are adjusted following the classification of Algeria as a discontinued operation (see Note 10) The accompanying notes are an integral part of these consolidated financial statements.

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the years ended December 31

	Note	2021	2020
(In millions of U.S. dollars)
Profit / (loss)		936	(121)
Items that may be reclassified to profit or loss
Foreign currency translation	9	(200)	(622)
Other		-	1
Items reclassified to profit or loss
Reclassification of accumulated foreign currency translation reserve to profit or loss upon	9	-	96
disposal of foreign operation
Other	16	(3)	(15)
Other comprehensive income / (loss) for the period, net of tax		(203)	(540)
Total comprehensive income / (loss) for the period, net of tax		733	(661)
Attributable to:
The owners of the parent		648	(604)
Non-controlling interests		85	(57)
		733	(661)

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

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as of December 31

	Note	2021	2020
(In millions of U.S. dollars)
Assets
Non-current assets
Property and equipment	12	6,705	6,853
Intangible assets	13	3,220	4,142
Investments and derivatives	16	1,412	1,951
Deferred tax assets	8	227	186
Other assets	6	217	179
Total non-current assets		11,781	13,311
Current assets
Inventories		111	111
Trade and other receivables	5	797	690
Investments and derivatives*	16	456	263
Current income tax assets	8	70	70
Other assets	6	333	329
Cash and cash equivalents*	17	2,170	1,573
Total current assets		3,937	3,036
Assets classified as held for sale	10	1,882	-
Total assets		17,600	16,347
Equity and liabilities
Equity
Equity attributable to equity owners of the parent	19	1,981	1,528
Non-controlling interests		913	850
Total equity		2,894	2,378
Non-current liabilities
Debt and derivatives	16	9,397	9,119
Provisions	7	85	141
Deferred tax liabilities	8	115	127
Other liabilities	6	36	27
Total non-current liabilities		9,633	9,414
Current liabilities
Trade and other payables		2,072	2,171
Debt and derivatives	16	1,535	1,252
Provisions	7	100	110
Current income tax payables	8	228	175
Other liabilities	6	746	847
Total current liabilities		4,681	4,555
Liabilities associated with assets held for sale	10	392	-
Total equity and liabilities		17,600	16,347

*Certain comparative amounts have been reclassified , refer to Note 23for further details The accompanying notes are an integral part of these consolidated financial statements.

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