XML 43 R22.htm IDEA: XBRL DOCUMENT v3.8.0.1

INVESTMENTS IN SUBSIDIARIES

12 Months Ended

Dec. 31, 2017

INVESTMENTS IN SUBSIDIARIES

INVESTMENTS IN SUBSIDIARIES

13 INVESTMENTS IN SUBSIDIARIES

        The Company held investments in the significant subsidiaries for the years ended December 31 as detailed in the table below. The equity interest presented represents the economic rights available to the Company.

						Equity interest held by the Group
		Country of incorporation		Nature of subsidiary
Name of significant subsidiary						2017			2016
VEON Amsterdam B.V.		Netherlands		Holding			100	%		100	%
VEON Holdings B.V.		Netherlands		Holding			100	%		100	%
PJSC VimpelCom		Russia		Operating			100	%		100	%
JSC "Kyivstar"		Ukraine		Operating			100	%		100	%
LLP "KaR-Tel"		Kazakhstan		Operating			75.0	%		75.0	%
LLC "Tacom"		Tajikistan		Operating			98.0	%		98.0	%
LLC "Unitel"		Uzbekistan		Operating			100	%		100	%
LLC "VEON Georgia"		Georgia		Operating			80.0	%		80.0	%
CJSC "VEON Armenia"		Armenia		Operating			100	%		100	%
LLC "Sky Mobile"		Kyrgyzstan		Operating			50.1	%		50.1	%
VimpelCom Lao Co. Ltd.		Lao PDR		Operating			78.0	%		78.0	%
VEON Luxembourg Holdings S.à r.l.		Luxembourg		Holding			100	%		100	%
VEON Luxembourg Finance Holdings S.à r.l.		Luxembourg		Holding			100	%		100	%
VEON Luxembourg Finance S.A.		Luxembourg		Holding			100	%		100	%
Global Telecom Holding S.A.E		Egypt		Holding			57.7	%		51.9	%
Omnium Telecom Algérie S.p.A.*		Algeria		Holding			26.3	%		23.7	%
Optimum Telecom Algeria S.p.A.*		Algeria		Operating			26.3	%		23.7	%
Pakistan Mobile Communications Limited		Pakistan		Operating			49.0	%		44.0	%
Banglalink Digital Communications Limited		Bangladesh		Operating			57.7	%		51.9	%
Wind Telecom S.p.A.**		Italy		Holding			—			100	%

* The Group has concluded that it controls Omnium Telecom Algérie S.p.A and Optimum Telecom Algeria S.p.A even though its subsidiary, Global Telecom Holding S.A.E. owns less than 50% of the ordinary shares. This is because the Company can exercise operational control through a shareholders' agreement.

** On December 1, 2017, Wind Telecom S.p.A. merged into VEON Holdings.

        Pursuant to local laws and regulations and covenants in agreements relating to indebtedness, subsidiaries may be restricted from declaring or paying dividends to VEON.

        The company holds and controls its investments in Omnium Telecom Algérie S.p.A., Optimum Telecom Algeria S.p.A, Pakistan Mobile Communications Limited, Warid Telecom Limited and Banglalink Digital Communications Limited ("Banglalink") through its subsidiary GTH, in which it holds a 57.7% interest as of balance sheet date.

MATERIAL PARTLY-OWNED SUBSIDIARIES

        Financial information of subsidiaries that have material non-controlling interests ("NCIs") is provided below:

		Equity interest held by NCIs						Book values of material NCIs						Profit / (loss) attributable to material NCIs
Name of significant subsidiary		2017			2016			2017			2016			2017			2016
LLP "KaR-Tel" ("Kar-Tel")			25.0	%		25.0	%		252			253			8			10
LLC "Sky Mobile" ("Sky Mobile")			49.8	%		49.8	%		167			164			3			(21	)
Global Telecom Holding S.A.E ("GTH")			42.3	%		48.1	%		(778	)		(219	)		(40	)		116
Omnium Telecom Algérie S.p.A. ("OTA")			73.7	%		76.3	%		1,235			1,332			100			141

        The summarized financial information of these subsidiaries before intercompany eliminations for the years ended December 31 are detailed below. Note that the amount of non-controlling interests presented for OTA of 73.7% represents the non-controlling interests in Algeria of 54.4% and the non-controlling interests in GTH, the intermediate parent company in Egypt, of 42.3%.

Summarized income statement

		Kar-Tel									Sky Mobile									GTH									OTA
		2017			2016			2015			2017			2016			2015			2017			2016			2015			2017			2016			2015
Operating revenue			348			308			534			108			136			164			3,015			2,955			2,894			915			1,040			1,273
Operating expenses			(296	)		(255	)		(410	)		(97	)		(162	)		(93	)		(2,384	)		(2,463	)		(2,462	)		(703	)		(753	)		(922	)
Other (expenses) / income			(7	)		2			97			(2	)		(12	)		29			(450	)		(213	)		(364	)		(27	)		(33	)		(72	)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Profit / (loss) before tax			45			55			221			9			(38	)		100			181			279			68			185			254			279
Income tax expense			(13	)		(14	)		(51	)		(4	)		(5	)		(10	)		(375	)		(144	)		(115	)		(49	)		(69	)		(106	)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Profit / (loss) for the year			32			41			170			5			(43	)		90			(194	)		135			(47	)		136			185			173
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total comprehensive income / (loss)			32			41			170			5			(43	)		90			(194	)		135			(47	)		136			185			173
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Attributed to NCIs			8			10			44			3			(21	)		40			(40	)		116			26			100			141			132
Dividends paid to NCIs			—			—			—			—			—			—			116			—			—			82			—			(57	)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​

Summarized statement of financial position

		Kar-Tel						Sky Mobile						GTH						OTA
		2017			2016			2017			2016			2017			2016			2017			2016
Property and equipment			184			203			79			80			2,028			2,314			517			531
Intangible assets			92			91			12			14			1,324			1,356			291			394
Other non-current assets			204			205			131			147			1,806			2,268			1,361			1,417
Trade and other receivables			22			16			6			6			250			222			31			44
Cash and cash equivalents			14			29			32			33			375			606			125			309
Other current assets			74			64			12			3			850			337			66			84
Financial liabilities			—			—			—			—			(3,072	)		(2,903	)		(128	)		(343	)
Provisions			(5	)		(7	)		(4	)		(15	)		(341	)		(396	)		(31	)		(28	)
Other liabilities			(84	)		(94	)		(22	)		(29	)		(1,876	)		(1,787	)		(400	)		(492	)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total equity			501			507			246			239			1,344			2,017			1,832			1,916
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Attributed to:
Equity holders of the parent			249			254			79			75			2,157			2,236			597			584
Non-controlling interests			252			253			167			164			(778	)		(219	)		1,235			1,332

Summarized statement of cash flows

		Kar-Tel									Sky Mobile									GTH									OTA
		2017			2016			2015			2017			2016			2015			2017			2016			2015			2017			2016			2015
Net operating cash flows			105			99			137			23			58			81			877			1,077			(339	)		345			446			(706	)
Net investing cash flows			(73	)		(124	)		(363	)		(24	)		45			(65	)		(924	)		(473	)		(823	)		(172	)		(238	)		(201	)
Net financing cash flows			(48	)		(83	)		(110	)		—			(115	)		(88	)		(157	)		(492	)		(1,032	)		(350	)		(288	)		(1,270	)
Effect of exchange rate changes on cash and cash equivalents			—			1			(5	)		—			(1	)		(3	)		(18	)		(14	)		(151	)		(7	)		(14	)		(153	)
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net increase / (decrease) in cash equivalents			(16	)		(107	)		(341	)		(1	)		(13	)		(75	)		(222	)		98			(2,345	)		(184	)		(94	)		(2,330	)

SIGNIFICANT ACCOUNTING JUDGEMENT

Control over subsidiaries

        Subsidiaries, which are those entities over which the Company is deemed to have control, are consolidated. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. In certain circumstances, significant judgment is required to assess if the Company is deemed to have control over entities where the Company's ownership interest does not exceed 50%.

X

- References

No definition available.

+ Details

Name:	ifrs-full_DisclosureOfSignificantInvestmentsInSubsidiariesAbstract
Namespace Prefix:	ifrs-full_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of subsidiaries. [Refer: Subsidiaries [member]]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 27
-IssueDate 2017-01-01
-Paragraph 17
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=27&date=2017-03-01&anchor=para_17_b&doctype=Standard
-URIDate 2017-03-09

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 27
-IssueDate 2017-01-01
-Paragraph 16
-Subparagraph b
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=27&date=2017-03-01&anchor=para_16_b&doctype=Standard
-URIDate 2017-03-09

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 12
-IssueDate 2017-01-01
-Paragraph B4
-Subparagraph a
-URI http://eifrs.ifrs.org/eifrs/XBRL?type=IFRS&num=12&date=2017-03-01&anchor=para_B4_a&doctype=Appendix&seq=2
-URIDate 2017-03-09

+ Details

Name:	ifrs-full_DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration