Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
IFRS Statement | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 333-12032 |
Entity Registrant Name | MOBILE TELESYSTEMS PUBLIC JOINT STOCK Co |
Entity Incorporation, State or Country Code | RI |
Entity Address, Address Line One | 4 Marksistskaya Street |
Entity Address, City or Town | Moscow |
Entity Address, Postal Zip Code | 109147 |
Entity Address, Country | RU |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | false |
Entity Central Index Key | 0001115837 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Auditor Name | AO Deloitte & Touche CIS |
Auditor Firm ID | 1341 |
Auditor Location | Moscow, Russia |
Business Contact [Member] | |
IFRS Statement | |
Entity Address, Address Line One | 5 Vorontsovskaya Street, bldg. 2 |
Entity Address, City or Town | Moscow |
Entity Address, Postal Zip Code | 109147 |
Entity Address, Country | RU |
Contact Personnel Name | Polina V. Ugryumova |
City Area Code | 495 |
Local Phone Number | 223 20 25 |
Contact Personnel Email Address | ir@mts.ru |
ADS | |
IFRS Statement | |
Entity Common Stock, Shares Outstanding | 391,398,362 |
ADS representing two common shares | |
IFRS Statement | |
Title of 12(b) Security | COMMON AMERICAN DEPOSITARY SHARES, EACH COMMON ADS REPRESENTING TWO COMMON SHARES |
Trading Symbol | MBT |
Security Exchange Name | NYSE |
Common stock | |
IFRS Statement | |
Title of 12(b) Security | COMMON SHARES, PAR VALUE |
No Trading Symbol Flag | true |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 1,129,245,695 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
NON-CURRENT ASSETS: | ||
Property, plant and equipment | ₽ 311,250 | ₽ 284,804 |
Investment property | 2,498 | 1,889 |
Right-of-use assets | 132,343 | 130,503 |
Goodwill | 42,819 | 38,041 |
Other intangible assets | 100,132 | 90,103 |
Investments in associates and joint ventures | 8,735 | 8,555 |
Other investments | 4,591 | 9,488 |
Deferred tax assets | 11,683 | 8,778 |
Accounts receivable, related parties | 5,000 | 5,209 |
Trade accounts receivable | 1,898 | 2,163 |
Bank deposits and loans to customers | 118,342 | 63,992 |
Other financial assets | 7,437 | 7,575 |
Other assets | 5,790 | 5,749 |
Total non-current assets | 752,518 | 656,849 |
CURRENT ASSETS: | ||
Inventories | 18,981 | 15,204 |
Trade and other receivables | 37,897 | 32,868 |
Accounts receivable, related parties | 2,287 | 8,980 |
Bank deposits and loans to customers | 87,594 | 52,676 |
Short-term investments | 28,972 | 23,434 |
Advances paid and prepaid expenses | 3,452 | 4,288 |
VAT receivable | 11,746 | 8,877 |
Income tax assets | 2,021 | 4,660 |
Assets held for sale | 549 | 667 |
Cash and cash equivalents | 40,590 | 85,405 |
Other financial assets | 27,349 | 23,975 |
Other assets | 1,862 | 1,320 |
Total current assets | 263,300 | 262,354 |
TOTAL ASSETS | 1,015,818 | 919,203 |
EQUITY: | ||
Common stock | 200 | 200 |
Treasury stock | (96,195) | (74,990) |
Additional paid-in capital | 619 | 89 |
Retained earnings | 94,935 | 94,391 |
Accumulated other comprehensive income | 10,207 | 9,010 |
Equity attributable to owners of the Company | 9,766 | 28,700 |
Non-controlling interests | 4,838 | 3,990 |
Total equity | 14,604 | 32,690 |
NON-CURRENT LIABILITIES: | ||
Borrowings | 350,300 | 395,143 |
Lease obligations | 135,800 | 134,637 |
Bank deposits and liabilities | 14,313 | 1,883 |
Deferred tax liabilities | 17,901 | 19,191 |
Provisions | 7,288 | 5,128 |
Contract liabilities | 977 | 717 |
Other financial liabilities | 180 | 14 |
Other liabilities | 1,035 | 1,186 |
Total non-current liabilities | 527,794 | 557,899 |
CURRENT LIABILITIES: | ||
Trade and other payables | 72,078 | 56,017 |
Accounts payable, related parties | 4,107 | 3,146 |
Contract liabilities | 22,621 | 21,125 |
Borrowings | 111,839 | 34,125 |
Lease obligations | 18,709 | 16,177 |
Bank deposits and liabilities | 207,055 | 165,794 |
Income tax liabilities | 768 | 753 |
Provisions | 17,479 | 13,460 |
Other financial liabilities | 202 | 1,109 |
Other liabilities | 18,562 | 16,908 |
Total current liabilities | 473,420 | 328,614 |
TOTAL EQUITY AND LIABILITIES | ₽ 1,015,818 | ₽ 919,203 |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS | |||
Service revenue | ₽ 457,677 | ₽ 425,448 | ₽ 406,478 |
Sales of goods | 76,726 | 69,478 | 64,127 |
Revenue | 534,403 | 494,926 | 470,605 |
Cost of services | 133,512 | 121,943 | 114,057 |
Cost of goods | 72,244 | 63,482 | 58,872 |
Selling, general and administrative expenses | 96,239 | 87,983 | 89,933 |
Depreciation and amortization | 111,088 | 100,234 | 96,195 |
Operating share of the profit of associates and joint ventures | (5,565) | (5,048) | (4,583) |
Impairment of non-current assets | (10) | 2,023 | (148) |
Impairment of financial assets | 13,010 | 11,912 | 7,723 |
Other operating income, net | (4,394) | (496) | (7,021) |
Operating profit | 118,279 | 112,893 | 115,577 |
Finance income | (2,518) | (3,437) | (4,352) |
Finance costs | 41,352 | 42,084 | 47,366 |
Non-operating share of the profit of associates and joint ventures | (181) | (273) | (3,496) |
Other non-operating expenses/(income) | 424 | (3,064) | 7,821 |
Profit before tax | 79,202 | 77,583 | 68,238 |
Income tax expense | 15,403 | 16,126 | 15,667 |
Profit for the year from continuing operations | 63,799 | 61,457 | 52,571 |
Profit from discontinued operations | (470) | (616) | (2,528) |
Profit for the year | 64,269 | 62,073 | 55,099 |
Profit for the year attributable to: | |||
Owners of the Company | 63,473 | 61,412 | 54,241 |
Non-controlling interests | ₽ 796 | ₽ 661 | ₽ 858 |
Earnings per share from continuing operations (basic), Russian Rubles: | ₽ 37.21 | ₽ 34.53 | ₽ 29.04 |
Earnings per share from continued operations (diluted), Russian Rubles: | 37.02 | 34.51 | 28.99 |
Earnings per share from discontinued operations (basic), Russian Rubles: | 0.28 | 0.35 | 1.42 |
Earnings per share from discontinued operations (diluted), Russian Rubles: | ₽ 0.28 | ₽ 0.35 | ₽ 1.42 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Profit for the year | ₽ 64,269 | ₽ 62,073 | ₽ 55,099 |
Items that may be reclassified subsequently to profit or loss: | |||
Reclassification to profit and loss due to Disposal of VF Ukraine (Note 11) | 7,947 | ||
Exchange differences on translating foreign operations | 1,102 | 1,840 | 1,134 |
Net fair value (loss) / gain on financial instruments | (237) | ||
Items that may be reclassified subsequently to profit or loss: | |||
Exchange differences on translating foreign operations in associates | 95 | (196) | (413) |
Other comprehensive income for the year, net of income tax | 1,197 | 1,644 | 8,431 |
Total comprehensive income for the year | 65,466 | 63,717 | 63,530 |
Total comprehensive income for the year attributable to: | |||
Owners of the Company | 64,670 | 63,056 | 62,672 |
Non-controlling interests | ₽ 796 | ₽ 661 | ₽ 858 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - RUB (₽) ₽ in Millions | Common stock | Treasury stock | Additional paid-in capital | Financial instruments revaluation reserveMTS Bank | Financial instruments revaluation reserve | Foreign currency translation reserve | Remeasurements of the net defined benefit liability | Retained earnings | Equity attributable to equity holdersMTS Bank | Equity attributable to equity holders | Non-controlling interests | MTS Bank | Total |
Balance at beginning of the year at Dec. 31, 2018 | ₽ (44,808) | ||||||||||||
Balance at beginning of the year (in shares) at Dec. 31, 2018 | (167,638,899) | ||||||||||||
Balance at beginning of the year at Dec. 31, 2018 | ₽ 200 | ₽ 237 | ₽ (1,971) | ₽ 670 | ₽ 110,946 | ₽ 65,274 | ₽ 12,291 | ₽ 77,565 | |||||
Balance at beginning of the year (in shares) at Dec. 31, 2018 | 1,998,381,575 | ||||||||||||
Profit for the year | 54,241 | 54,241 | 858 | 55,099 | |||||||||
Disposal of VF Ukraine (Note 11) | 7,947 | 7,947 | 7,947 | ||||||||||
Currency translation adjustment | 721 | 721 | 721 | ||||||||||
Net fair value (loss) / gain on financial instruments | ₽ (237) | ₽ (237) | ₽ (237) | (237) | |||||||||
Total comprehensive (loss) / income for the year | ₽ (237) | 8,668 | 54,241 | 62,672 | 858 | 63,530 | |||||||
Issuance of stock options | ₽ 872 | 872 | 872 | ||||||||||
Exercise of stock options | ₽ (982) | 1,060 | 78 | 78 | |||||||||
Exercise of stock options (in shares) | 3,610,561 | ||||||||||||
Dividends declared by MTS | (74,302) | (74,302) | (74,302) | ||||||||||
Dividends to non-controlling interests | 1,123 | 1,123 | |||||||||||
Purchase of own stock (Note 32) | ₽ (15,922) | (15,922) | (15,922) | ||||||||||
Purchase of own stock (Note 32) (in shares) | (61,519,084) | ||||||||||||
Purchase of non-controlling interests | (4,162) | (4,162) | (8,700) | (12,862) | |||||||||
Acquisitions under common control (Note 5) | (1,286) | (1,286) | (1,286) | ||||||||||
Reclass to retained earnings and other | 5,636 | (5,636) | |||||||||||
Balance at end of the year at Dec. 31, 2019 | ₽ 200 | 6,697 | 670 | 85,249 | 33,068 | 3,326 | 36,394 | ||||||
Balance at end of the year (in shares) at Dec. 31, 2019 | 1,998,381,575 | ||||||||||||
Balance at end of the year at Dec. 31, 2019 | ₽ (59,748) | ||||||||||||
Balance at end of the year (in shares) at Dec. 31, 2019 | (225,547,422) | ||||||||||||
Profit for the year | 61,412 | 61,412 | 661 | 62,073 | |||||||||
Currency translation adjustment | 1,644 | 1,644 | 1,644 | ||||||||||
Total comprehensive (loss) / income for the year | 1,644 | 61,412 | 63,056 | 661 | 63,717 | ||||||||
Issuance of stock options | 560 | 560 | 560 | ||||||||||
Exercise of stock options | ₽ 768 | (767) | |||||||||||
Exercise of stock options (in shares) | 2,865,735 | ||||||||||||
Dividends declared by MTS | (52,012) | (52,012) | (52,012) | ||||||||||
Dividends to non-controlling interests | 52 | 52 | |||||||||||
Purchase of own stock (Note 32) | ₽ (16,010) | (16,010) | (16,010) | ||||||||||
Purchase of own stock (Note 32) (in shares) | (48,797,719) | ||||||||||||
Reclass to retained earnings and other | 296 | (258) | 38 | (49) | (11) | ||||||||
Balance at end of the year at Dec. 31, 2020 | ₽ 200 | 89 | 8,341 | 670 | 94,391 | 28,700 | 3,990 | 32,690 | |||||
Balance at end of the year (in shares) at Dec. 31, 2020 | 1,998,381,575 | ||||||||||||
Balance at end of the year at Dec. 31, 2020 | ₽ (74,990) | (74,990) | |||||||||||
Balance at end of the year (in shares) at Dec. 31, 2020 | (271,479,406) | ||||||||||||
Profit for the year | 63,473 | 63,473 | 796 | 64,269 | |||||||||
Currency translation adjustment | 1,197 | 1,197 | 1,197 | ||||||||||
Total comprehensive (loss) / income for the year | 1,197 | 63,473 | 64,670 | 796 | 65,466 | ||||||||
Issuance of stock options | 2,796 | 2,796 | 2,796 | ||||||||||
Exercise of stock options | ₽ 279 | (263) | 16 | 16 | |||||||||
Exercise of stock options (in shares) | 1,030,559 | ||||||||||||
Dividends declared by MTS | (61,967) | (61,967) | (61,967) | ||||||||||
Dividends to non-controlling interests | 52 | 52 | |||||||||||
Purchase of own stock (Note 32) | ₽ (21,484) | (21,484) | (21,484) | ||||||||||
Purchase of own stock (Note 32) (in shares) | (65,308,610) | ||||||||||||
Purchase of non-controlling interests | (143) | (143) | (143) | ||||||||||
Acquisitions under common control (Note 5) | (2,794) | (2,794) | (2,794) | ||||||||||
Reclass to retained earnings and other | 934 | (962) | (28) | (28) | |||||||||
Balance at end of the year at Dec. 31, 2021 | ₽ 200 | ₽ 619 | ₽ 9,537 | ₽ 670 | ₽ 94,935 | ₽ 9,766 | ₽ 4,838 | 14,604 | |||||
Balance at end of the year (in shares) at Dec. 31, 2021 | 1,998,381,575 | ||||||||||||
Balance at end of the year at Dec. 31, 2021 | ₽ (96,195) | ₽ (96,195) | |||||||||||
Balance at end of the year (in shares) at Dec. 31, 2021 | (335,757,457) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Profit for the year | ₽ 64,269 | ₽ 62,073 | ₽ 55,099 |
Adjustments for: | |||
Depreciation and amortization | 111,088 | 100,205 | 106,948 |
(Reversal of) / Impairment of non-current assets | (10) | 2,023 | (148) |
Impairment of financial assets | 12,983 | 11,936 | 7,761 |
Loss/(gain) from sale of Ukraine operations (Note 11) | 54 | (2,101) | 5,499 |
Finance income | (2,518) | (3,439) | (4,805) |
Finance costs | 41,352 | 42,085 | 48,711 |
Income tax expense | 15,403 | 17,191 | 17,671 |
Share of profit of associates and joint ventures | (5,746) | (5,321) | (8,079) |
Net foreign exchange loss/ (gain) and change in fair value of financial instruments | 186 | (4,330) | 1,784 |
Inventory obsolescence expense | 1,456 | 891 | 2,207 |
Change in provisions | 3,620 | 1,492 | 305 |
Other non-cash items | (4,360) | (4,393) | (6,882) |
Movements in operating assets and liabilities: | |||
(Increase)/Decrease in trade and other receivables and contract assets | (2,608) | 1,904 | (3,808) |
Increase in bank deposits and loans to customers | (101,897) | (33,570) | (34,452) |
(Increase) / decrease in inventory | (5,206) | (630) | 3 |
(Increase) / decrease in advances paid and prepaid expenses | (2,526) | (6,507) | 3,478 |
(Increase) / Decrease in VAT receivable | (2,821) | 482 | (2,522) |
Increase / (Decrease) in trade and other payables, contract liabilities and other current liabilities | 16,544 | (1,104) | 6,825 |
Increase in bank deposits and liabilities | 53,765 | 27,172 | 27,823 |
Fines and penalties related to investigation into former operations in Uzbekistan (Note 34) | (55,607) | ||
Dividends received | 4,794 | 3,676 | 3,707 |
Income tax paid | (17,494) | (15,193) | (23,943) |
Interest received | 3,150 | 2,727 | 5,263 |
Interest paid, net of interest capitalized | (40,632) | (41,762) | (46,186) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 142,846 | 155,507 | 106,652 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of subsidiaries, net of cash acquired (Note 5) | (10,186) | (262) | (2,052) |
Purchases of property, plant and equipment (including capitalized interest in the amount of RUB 533 million, RUB 550 million and RUB 460 million, respectively) | (73,081) | (66,256) | (68,465) |
Purchases of other intangible assets | (38,602) | (31,153) | (23,016) |
Purchase of 3G and 4G licenses in Armenia and Ukraine | (255) | ||
Cost to obtain and fulfill contracts, paid | (4,218) | (5,442) | (4,651) |
Proceeds from sale of property, plant and equipment and assets held for sale | 5,082 | 6,678 | 6,536 |
Purchases of short-term and other investments | (13,765) | (10,054) | (22,714) |
Proceeds from sale of short-term and other investments | 13,085 | 16,012 | 47,139 |
Investments in associates and joint ventures (Note 16) | (1,087) | (1,460) | (75) |
Cash (payments) and proceeds related to swap contracts | (657) | 5,322 | (2,459) |
Proceeds from sale of subsidiaries, net of cash disposed (Notes 11 and 31) | 3,891 | 3,461 | 37,386 |
Proceeds from sale/liquidation of associates (Note 16) | 3,014 | 2,450 | 3,067 |
Other investing activities | 92 | 5 | |
NET CASH USED IN INVESTING ACTIVITIES | (116,432) | (81,133) | (29,554) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of notes | (20,813) | (28,167) | (189) |
Proceeds from issuance of notes | 4,350 | 46,757 | 72,500 |
Notes and debt issuance cost paid | (96) | (107) | (111) |
Lease obligation principal paid | (16,516) | (15,054) | (15,154) |
Dividends paid | (61,955) | (74,923) | (52,505) |
Acquisition of entities under common control, net of cash acquired (Note 5) | (3,474) | (15,312) | |
Proceeds from loans | 64,311 | 194,645 | 62,415 |
Repayment of loans | (15,538) | (134,483) | (156,511) |
Repurchase of common stock | (21,483) | (16,028) | (15,922) |
Other financing activities | 341 | ||
NET CASH USED IN FINANCING ACTIVITIES | (71,214) | (27,360) | (120,448) |
Effect of exchange rate changes on cash and cash equivalents | (79) | 385 | (2,655) |
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | (44,879) | 47,399 | (46,005) |
CASH AND CASH EQUIVALENTS, beginning of the year | 85,405 | 38,070 | 84,075 |
CASH AND CASH EQUIVALENTS, end of the year | 40,590 | 85,469 | 38,070 |
Less cash and cash equivalents within held for sale | (64) | ||
CASH AND CASH EQUIVALENTS, end of the year | ₽ 40,590 | 85,405 | ₽ 38,070 |
Avantage | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of Avantage | ₽ (429) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Interest paid, capitalized | ₽ 533 | ₽ 550 | ₽ 460 |
GENERAL INFORMATION AND DESCRIP
GENERAL INFORMATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2021 | |
GENERAL INFORMATION AND DESCRIPTION OF BUSINESS | |
GENERAL INFORMATION AND DESCRIPTION OF BUSINESS | 1. GENERAL INFORMATION AND DESCRIPTION OF BUSINESS Mobile TeleSystems Public Joint-Stock Company (“MTS PJSC”, or “the Company”) is a company incorporated under the laws of the Russian Federation and having its registered address at 4, Marksistskaya Street, 109147, Moscow, Russian Federation. The consolidated financial statements of the Company and its subsidiaries (“the Group” or “MTS”) as of December 31, 2021 and 2020, and for the years ended 31 December 2021, 2020 and 2019 were authorized for issue by the President of the Company on March 1, 2022. Business of the Group MTS completed its initial public offering in 2000 and listed its shares of common stock, represented by American Depositary Shares, or ADSs, on the New York Stock Exchange under the symbol “MBT”. Since 2003 common shares of MTS PJSC have been traded on the Public Joint-Stock Company “Moscow Exchange MICEX-RTS” (the “Moscow Exchange”). The Group provides a wide range of telecommunications and digital services including voice and data transmission, internet access, pay TV, various value added services (“VAS”) through wireless and fixed lines, fintech services, B2B Cloud and digital solutions as well as the sale of equipment, accessories and software. Upon disposal of its operations in Ukraine in December 2019 (Note 11), the Group primarily operates in Russia. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS Basis of preparation The consolidated financial statements have been prepared on a historical cost basis, unless disclosed otherwise. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Amounts in the consolidated financial statements are stated in millions of Russian Rubles (“RUB million”), unless indicated otherwise. The consolidated financial statements have been prepared on the assumption that the Group is a going concern and will continue in operation for the foreseeable future (Note 29). Basis of consolidation Effective ownership interests in the Group’s significant subsidiaries were the following: Accounting December 31, December 31, method 2021 2020 RTC Consolidated 100.0 % 100.0 % MTS Bank Consolidated 99.9 % 99.9 % MGTS Group Consolidated 94.7 % 94.7 % Multiregional TransitTelecom (Note 5) Consolidated 100.0 % — MTS Armenia Consolidated 100.0 % 100.0 % Nvision Czech Republic Consolidated 100.0 % 100.0 % MDTZK LLC (Ticketland) Consolidated 100.0 % 100.0 % Kulturnaya Sluzhba (Ponominalu) Consolidated 100.0 % 100.0 % Sputnikovoe TV Consolidated 100.0 % 100.0 % IT Grad (Note 5) Consolidated 100.0 % 100.0 % MTS Avto (former Stopol) (Note 5) Consolidated 100.0 % 100.0 % "Zelenaya Tochka" Group – Achemar Holdings Ltd (Note 5) (1) Consolidated 100.0 % 51.0 % Oblachny Retail LLC Consolidated 100.0 % 50.8 % MTS Media Consolidated 100.0 % 100.0 % Navigation Information Systems Group Consolidated 94.7 % 94.7 % MTS Didgital (former MTS IT) Consolidated 100.0 % 100.0 % Kinopolis (Note 5) Consolidated 100.0 % 100.0 % Sistema Capital (Note 5) (1) Consolidated 100.0 % 30.0 % Stream Consolidated 100.0 % 100.0 % MTS Turkmenistan Consolidated 100.0 % 100.0 % MTS Artificial Intelligence Consolidated 100.0 % 100.0 % MWS Consolidated 100.0 % — Energy Group (Note 5) Consolidated 100.0 % — Dega Consolidated 100.0 % 100.0 % Stream Digital Consolidated 100.0 % 100.0 % Bastion Consolidated 100.0 % 100.0 % MTS International Funding Limited (2) Consolidated SE SE MTS Belarus (Note 16) Equity 49.0 % 49.0 % (1) Consolidated since 2021, accounted for as an equity investment in 2020 (2) A company organized and existing as a private limited company under the laws of Ireland. The Group does not have any equity in MTS International. It was established for the purpose of raising capital through the issuance of debt securities on the Irish Stock Exchange followed by transferring the proceeds through a loan facility to the Group. In 2010 and 2013, MTS International issued USD 750 million 8.625% notes due in 2020 (fully repaid in June 2020) and USD 500 million 5.0% notes due in 2023, respectively (Note 24). The notes are guaranteed by MTS PJSC in the event of default. MTS International does not perform any other activities except those required for notes servicing. The Group bears all costs incurred by MTS International in connection with the notes’ maintenance activities. Accordingly, the Group concluded that it exercises control over the entity. Acquisitions from entities under common control Joint operations Non-current assets held for sale and discontinued operations A disposal group qualifies as discontinued operation if it is a component of the entity that either has been disposed of or is classified as held for sale, and: ● Represents a separate major line of business or geographical area of operations; ● Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; ● Or is a subsidiary acquired exclusively with a view to resale. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit or loss. Group's statement of cash flows include both cash flows from continuing and discontinued operations, amounts related to discontinued operations by operating, investing and financing activities are presented in Note 11. Vendor financing arrangemets – Functional currency translation methodology ● ● ● ● ● Foreign-currency transactions are translated into the functional currency at the exchange rates at the dates of the transactions. At the reporting date, monetary items denominated in foreign currencies are translated at the closing rate, whereas non-monetary items are stated at the exchange rate at the date of their recognition. Exchange rate differences are recognized in profit or loss. For entities whose records are maintained in their functional currency, which is other than the reporting currency, all year-end assets and liabilities have been translated into U.S. Dollars (“USD”) at the period-end exchange rate set by local central banks. Subsequently, U.S. Dollars balances have been translated into Russian Rubles at the period-end exchange rate set by the Central Bank of Russia. Revenues and expenses have been translated at the average exchange rate for the period using the cross-currency exchange rate via the U.S. Dollar as described above. Translation differences resulting from the use of these rates are reported as a component of other comprehensive income. Standards, interpretations and amendments adopted in the financial year 2021 Amendments to IFRS9, IAS39, IFRS7, IFRS 4 and IFRS16 Interest Rate Benchmark Reform (Phase 2) Amendments to IFRS16 Covid-19 Related Rent Concessions Amendments to IFRS 1 and IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction (1) (1) None of these interpretations and amendments had material effect on the Group’s consolidated financial statements. Standards, interpretations and amendments in issue but not yet effective The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective: Amendments to IAS 37 Onerous contracts – Cost of fulfilling a contract (1) Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use (1) Amendments to IFRS 3 Reference to Conceptual Framework (1) Amendments to IFRS Annual Improvements to IFRSs (2018-2020 Cycle) (1) Amendments to IAS 1 Classification of Liabilities as Current or Non-Current (2) IFRS 17 and amendments to IFRS17 Insurance Contracts (2) Amendments to IAS 8 Definition of Accounting Estimate (2) Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policy (2) Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (3) (1) Effective for annual periods beginning on or after January 1, 2022, with earlier application permitted. (2) Effective for annual periods beginning on or after January 1, 2023, with earlier application permitted. (3) The effective date for these amendments was deferred indefinitely. Early adoption continues to be permitted. These IFRS pronouncements are not expected to have a material impact on the Group's consolidated financial statements. |
IMPACTS OF COVID-19
IMPACTS OF COVID-19 | 12 Months Ended |
Dec. 31, 2021 | |
IMPACTS OF COVID-19 | |
IMPACTS OF COVID-19 | 3 The coronavirus pandemic has led to a global economic crisis. Due to higher demand for certain telecommunications services the impact of the crisis has been felt less severely by the telecommunication industry and the Group than by other industries. Business activities and thus the results of operations and financial position of the Group were impacted by the coronavirus pandemic in various business areas, affecting revenue and earnings, although not to any significant extent. The main negative effects on the Group results for the first half of the financial year 2020 were increased expected credit loss allowance recognized in respect to the Group’s financial assets as well as the impairment of the e-ticketing business. Notwithstanding the foregoing, during the second half of the financial year 2020 and in the financial year 2021 the Group experienced only minor customer payment defaults as a consequence of COVID-19, such that the expected credit loss has since returned to its normal level. Generally, the global COVID-19 situation remains uncertain and subject to change and could further impact the economies and financial markets of many regions, including the countries in which the Group operates, which in turn could impact consumer and business spending patterns and the Group’s operating results. |
SIGNIFICANT ACCOUNTING JUDGMENT
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS | 12 Months Ended |
Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS | |
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS | 4. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS A critical accounting estimate is an estimate that is both important to the presentation of the Group’s financial position and requires management’s most difficult, subjective or complex judgments, often as a result of the need to determine estimates and develop assumptions about the outcome of matters that are inherently uncertain. Management evaluates such estimates on an on-going basis, based upon historical results, historical experience, trends, consultations with experts, forecasts of the future, and other methods which management considers reasonable under the circumstances. Management considers the accounting estimates discussed below to be its critical accounting estimates, and, accordingly, provides an explanation of each. 1. Depreciation and amortization of non-current assets Depreciation and amortization expenses are based on management estimates of useful life, residual value and amortization method of property and equipment and intangible assets. Estimates may change due to technological developments, competition, changes in market conditions and other factors and may result in changes in the estimated useful life and in the amortization or depreciation charges. Technological developments are difficult to predict and management views on the trends and pace of development may change over time. Some of the assets and technologies, in which the Group invested several years ago, are still in use and provide the basis for new technologies. Critical estimates in the evaluations of useful lives for intangible assets include, but are not limited to, the estimated average customer relationship based on churn, the remaining licence period and the expected developments in technology and markets. The useful lives of property and equipment and intangible assets are reviewed at least annually, taking into consideration the factors mentioned above and all other important relevant factors. The actual economic lives of intangible assets may be different from useful lives estimated by management, thereby resulting in a different carrying value of intangible assets with finite lives. The Group continues to evaluate the amortization period for intangible assets with finite lives to determine whether events or circumstances warrant revised amortization periods. A change in estimated useful lives is a change in accounting estimate, and depreciation and amortization charges are adjusted prospectively. See Notes 20 and 23 for further information. 2. Impairment of non-current assets The Group has made significant investments including in property, plant and equipment, intangible assets, goodwill, right-of-use assets, acquiring and fulfilling of contracts. Pursuant to IAS 36, goodwill and other intangible assets with indefinite useful lives and intangible assets not yet brought into use must be tested for impairment annually or more often if indicators of impairment exist. Other assets are tested for impairment when circumstances indicate that there may be a potential impairment. Recoverable amounts of assets and cash generating units ("CGUs") are based on evaluations, including the determination of the appropriate CGUs, the discount rate, estimates of future performance, the revenue generating capacity of the assets, timing and amount of future purchases of property and equipment, assumptions of the future market conditions and the long-term growth rate into perpetuity (terminal value). A change of assumptions, particularly in relation to the discount rate and growth rate used to estimate the recoverable amounts of assets, could significantly impact results of the Group’s impairment evaluation. See Note 22 for further information. 3. Fair value of financial instruments Where the fair value of financial assets and financial liabilities recorded in the statement of financial position cannot be derived from active markets, their fair value is determined using valuation techniques, including discounted cash flow models. The inputs to these models are taken from observable markets where possible, but when this is not feasible, a degree of judgment is required in establishing fair values. The judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. See Note 28 for further information. 4. Provisions and contingencies The Group is subject to various legal proceedings, disputes and claims, including regulatory discussions related to the Group’s business, licences, tax positions and investments, where the outcomes are subject to significant uncertainty. In addition, significant uncertainty exists in relation to employee bonuses and other rewards, which depend on their individual performance and Group’s results. The management evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss or related expense. Unanticipated events or changes in these factors may require the Group to increase or decrease the amount recorded or to be recorded for a matter that has not been previously recorded because it was not considered probable. See Notes 27 and Note 34 for further information. 5. Right-of-use assets and lease liabilities The value of right-of-use assets and lease liabilities is based on management estimates of lease terms as well as an incremental borrowing rate used to discount lease payments. The lease term corresponds to the non-cancellable period of each contract except in cases where the Group is reasonably certain of exercising renewal options. When assessing the lease term the management considers all facts and circumstances that create the economic incentive for the Group to exercise the option to extend the lease, such as the useful life of the asset located on the leased site, statistics on sites replacement, sequence of technology change, profitability of the Group's retail stores as well as costs to terminate or enter into lease contracts. The incremental borrowing rate of the Group is determined based on the credit spreads of the Group's debt instruments in relation to zero-coupon yield curve for government securities. Changes in these factors could affect the estimated lease term and the reported value of right-of-use assets and lease liabilities. See Note 25 for further information. 6. Impairment of financial assets The Group uses management’s judgement to estimate allowance for expected credit losses (ECL) for financial assets at amortized costs. ECL are measured in a way that reflects the unbiased and probability-weighted amount, the time-value of money and reasonable and supportable information at the reporting date pertaining to past events, current conditions and forecasts of future economic conditions. ECL are measured as probability-weighted present value of all cash shortfalls over the expected life of each financial asset. For receivables from financial services, ECL are mainly calculated using a statistical model based on three major risk parameters: probability of default, loss given default and exposure at default. The estimation of these risk parameters incorporates all available relevant information, not only historical and current loss data, but also reasonable and supportable forward-looking information reflected by the future expectation factors. This information includes macroeconomic factors (unemployment rate, inflation rate) and forecasts of future economic conditions. Significant changes in risk parameters could affect the estimated amount of ECL. See Notes 18 and 30 for further information. |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended |
Dec. 31, 2021 | |
BUSINESS ACQUISITIONS | |
BUSINESS ACQUISITIONS | 5 Unless stated otherwise, all business combinations disclosed were accounted for by applying the acquisition method. Goodwill recognized as a result of the acquisitions is not expected to be deductible for income tax purposes. Acquisition after the reporting period Acquisition of VisionLabs The preliminary purchase price allocation for VisionLabs was as follows: Goodwill 3,800 (1) Customer base 1,726 (2) Other intangible assets 1,434 Property, plant and equipment 86 Other non-current assets 53 Current assets 266 Cash and cash equivalents 211 Current liabilities (447) Non‑current liabilities (606) Total consideration 6,523 Including: Fair value of contingent consideration 621 Fair value of stake in Group’s subsidiary 659 Cash payable 5,243 (1) The provisional goodwill is attributable to the expected synergies arising from the acquisition and allocated to the “Artificial Intelligence” operating segment. (2) Amortized over the term of up to 7 years . Acquisitions in 2021 Acquisition of Zelenaya Tochka Acquisition of Credit Consulting 5-year Acquisition of MTT Acquisition of Energy Group The preliminary purchase price allocations for acquired companies as at the dates of acquisitions were as follows: Zelenaya Credit MTT Tochka GreenBush Consulting Goodwill 2,984 (1) 1,353 (1) - 46 (2) Customer base 827 (3) 320 (4) — — Trademark 530 12 — — Other intangible assets 590 24 1 4 Property, plant and equipment 588 623 5,171 — Other non-current assets 254 43 17 — Current assets 3,056 1,417 84 18 Cash and cash equivalents 340 152 9 3 Current liabilities (2,656) (725) (26) (11) Non‑current liabilities (715) (118) (56) — Total consideration 5,798 3,101 5,200 60 Including: Fair value of contingent consideration — — — 60 Fair value of offset financial assets 1,958 — — — Fair value of previously held interest — 1,582 — — Deferred payment 160 7 — — Cash paid or payable 3,680 1,512 5,200 — (1) The provisional goodwill is attributable to the expected synergies arising from the acquisition and allocated to the “Telecom” operating segment. (2) The provisional goodwill is attributable to the expected synergies arising from the acquisition and allocated to the “Fintech” operating segment. (3) Amortized over the term of up to 3 years . (4) Amortized over the term of 5 years . None of the provisional amounts of goodwill recognized is expected to be deductible for income tax purposes. Acquisitions under common control, accounted for directly in equity Acquisition of LLC Sistema Capital (“Sistema Capital”) – The following table summarizes the details of acquisition of subsidiary under common control finalized in 2021: Consideration paid net of cash Assets acquired Liabilities Acquired company acquired* Cash acquired other than cash assumed Sistema Capital 3,474 26 1,185 90 * Disposal of STS-Ukraine In February 2021, the Group sold its 100% stake in LLC “Sitronics Telecom Solutions Ukraine” (“STS-Ukraine”) for RUB 52 million. As of the date of disposal, the carrying amounts of assets and liabilities pertaining to the disposal group and reconciliation of the loss on disposal were as follows: Current assents 282 Non-current assets 51 Total assets 333 Current liabilities (275) Non-current liabilities (36) Total liabilities (311) Accumulated other comprehensive income 83 Total consideration (52) Loss on disposal 53 Acquisitions in 2020 Acquisition of Stopol The purchase price allocation for Stopol as at the date of acquisition was presented as follows: Stopol Goodwill (1) 282 Other non-current assets 2 Current assets 230 Cash and cash equivalents 69 Current liabilities (262) Total consideration 321 Including: Fair value of contingent consideration 9 Cash paid 312 (1) The goodwill is attributable to the expected synergies resulted from the acquisition and allocated to the “Stopol” operating segment within “Other” category in reportable segments. Acquisitions in 2019 Acquisition of JSC RIKT The fair values of the identifiable assets and liabilities of RIKT as at the date of acquisition were as follows: Goodwill (1) 105 Other intangible assets (2) 172 Property, plant and equipment 118 Trade and other receivables 12 Cash and cash equivalents 6 Other current assets 9 Other non-current assets 14 Current liabilities (37) Non‑current liabilities (39) Consideration transferred (in cash) 360 (1) The goodwill is attributable to the expected synergies resulted from the acquisition and allocated to the “Telecom” operating segment. (2) Amortized over the average term of 12 years . Acquisitions under common control, accounted for directly in equity Acquisition of JSC Objedinennye Russkie Kinostudii (“Кinopolis”) – Acquisition of property complex at Narodnogo opolcheniya street (“Narodnoje”) The following table summarizes the details of acquisitions of subsidiaries under common control finalized in 2019: Consideration paid Assets acquired Acquired company net of cash acquired* Cash acquired other than cash Liabilities assumed Kinopolis 2,030 12 1,017 58 Narodnoje 329 — 102 — Total effect of acquisitions under common control 2,359 12 1,119 58 * According to the terms of the purchase agreements, deferred payments and contingent consideration payable by the Group could be reduced by the amount of any losses incurred by the Group in respect of any tax or other claims relating to the pre-acquisition period. In case the amount of the losses incurred exceeds the amount of deferred payment, the seller has indemnified the Group for the amounts in excess. The following table summarizes the movement in deferred payment and contingent consideration liabilities and related indemnification assets for the years ended December 31, 2021, 2020 and 2019: Deferred payments on Zelenaya Credit Indemnification asset/ acquisitions IT-Grad Stopol Tochka Consulting MTT (Liability on deferred payment/ prior to contingent contingent deferred contingent deferred contingent consideration) 2019 consideration consideration payment consideration payment January 1, 2019 118 (907) — — — — Measurement period adjustment — 66 — — — — Reversal of indemnity (259) — — — — — Revaluation (22) (66) — — — — Payment 163 — — — — — December 31, 2019 — (907) — — — — Initial recognition of deferred payment/contingent consideration — — (40) — — — Less: Provision for tax liabilities related to pre-acquisition period — — 26 — — — Reversal of tax provision — — (10) — — — December 31, 2020 — (907) (24) — — — Initial recognition of deferred payment/contingent consideration — — — (7) (60) (160) Less: Provision for tax liabilities related to pre-acquisition period — — 3 — — — Revaluation — 542 — — (1) — Payment — 365 — 7 — — December 31, 2021 — — (21) — (61) (160) Pro forma results of operations 2021 MTT, Zelenaya Tochka, GreenBush, Credit 2020 2019 Consulting, RIKT, Kinopolis, Pro forma: Sistema Capital STOPOL Narodnoje Net revenue 537,867 495,273 476,257 Net profit fot the year 64,399 62,079 55,101 The pro forma information is based on various assumptions and estimates. The pro forma information is neither necessarily indicative of the operating results that would have occurred if the Group acquisitions had been consummated as of January 1, 2019, 2020 or 2021, nor is it necessarily indicative of future operating results. The pro forma information does not give effect to any potential revenue enhancements or cost synergies or other operating efficiencies that could result from the acquisitions. The actual results of operations of these companies are included into the consolidated financial statements of the Group only from the respective dates of acquisition and are presented as follows: 2021 MTT, Zelenaya Tochka, GreenBush, Credit 2020 2019 Consulting, RIKT, Kinopolis, Sistema Capital STOPOL Narodnoje Net revenue 5,341 355 238 Net profit/(loss) for the year 25 25 (15) |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 6. SEGMENT INFORMATION Management (chief operating decision maker) analyzes and reviews results of the Group’s operating segments separately based on the nature of products and services, regulatory environments and geographic areas. Management of the Group evaluates the performance of each segment based on revenue and operating profit, excluding depreciation and amortization and impairment of non-current assets measured on the basis consistent with IFRS consolidated financial statements (the relevant financial indicator called OIBDA). Management does not analyze assets or liabilities by reportable segments. The Group identified the following reportable segments: Telecom Fintech Ukraine In 2021 management of the Group has changed the composition of operating segments, by dividing operations of the Group’s subsidiary MGTS (previously constituted Moscow Fixed Line reportable segment) into two operating segments. Operations of the established “MGTS service” operating segment comprised primarily maintenance and development of fixed-line network infrastructure. The segment generates revenues mainly from granting own network infrastructure in rent. Operations of the established component “MGTS commercial” include client relationships and related fixed-line services, generating revenue from existing subscribers. The operating and financial results of “MGTS commercial” are reviewed jointly with “Russia convergent” segment, in line with focus on convergent products development, while the results of “MGTS service” are monitored separately. Consequently, “MGTS service” represents a separate operating segment. “MGTS commercial” and “Russia convergent” are presented as one operating segment – “Telecom”. Financial results of operating segment “MTS-Bank” were supplemented with operations of investment management and credit broker services in connection with acquisition of LLC Sistema Capital and acquisition of Credit Consulting. New operating segment was called “Fintech”. At the end of 2020 the management’s change of approach for reviewing of Group’s operational results led to separation of two new segments – Cloud and WASD. Cloud represents operational results of Group MTS business aimed at cloud services. WASD is the MTS streaming platform. Cloud and WASD were moved from “Telecom” operating segment to the “Other” category. Management change assessment of expenses amount allocated to HQ in relation with sale of MTS Ukraine in 2019. On October 30, 2020, the Group entered into a sale agreement with Sistema to dispose of 100% share in JSC “Nvision Group”, which provided integration services, as well as the sales of software, and constituted “System Integrator” operating segment included in “Other” reportable segment. In order to reflect changes in segments’ composition, segment disclosures for 2019 and 2020 were retrospectively restated. The “Other” category does not constitute a reportable segment. It includes the results of a number of other operating segments that do not meet the quantitative thresholds for separate reporting, such as Turkmenistan, Armenia, MGTS Service, Cloud, Artificial Intelligence and others. The intercompany eliminations presented below primarily consist of sales transactions between segments conducted under the normal course of operations. Financial information by reportable segments is presented below: Year ended December 31, 2021: Total of reportable HQ and Telecom Fintech segments Other elimination Consolidated Revenue External customers 444,175 46,836 491,011 43,296 96 534,403 Intersegment 4,138 2,771 6,909 19,527 (26,436) — Total revenue 448,313 49,607 497,920 62,823 (26,340) 534,403 OIBDA 204,194 8,834 213,028 24,700 (8,371) 229,357 Depreciation and amortization (111,088) Impairment of non-current assets 10 Operating profit 118,279 Year ended December 31, 2020: Total of reportable HQ and Telecom Fintech segments Other elimination Consolidated Revenue External customers 425,059 33,773 458,832 36,002 92 494,926 Intersegment 4,260 2,449 6,709 13,130 (19,839) — Total revenue 429,319 36,222 465,541 49,132 (19,747) 494,926 OIBDA 200,911 3,862 204,773 18,026 (7,649) 215,150 Depreciation and amortization (100,234) Impairment of non-current assets (2,023) Operating profit 112,893 Year ended December 31, 2019: Total of reportable HQ and Telecom Fintech segments Other elimination Consolidated Revenue External customers 381,697 29,304 411,001 59,510 94 470,605 Intersegment 9,406 1,881 11,287 12,063 (23,350) — Total revenue 391,103 31,185 422,288 71,573 (23,256) 470,605 OIBDA 174,010 4,574 178,584 39,243 (6,203) 211,624 Depreciation and amortization (96,195) Impairment of non-current assets 148 Operating profit 115,577 The consolidated operating profit is reconciled to the consolidated profit before tax on the face of the consolidated statement of profit or loss. Financial information by geographic area is presented below: Revenue 2021 2020 2019 Russia 520,671 481,536 459,415 Other 13,732 13,390 11,190 Total revenue 534,403 494,926 470,605 December 31, Non-current assets (1) 2021 2020 Russia 442,655 401,743 Other 11,546 11,205 Total non-current assets: 454,201 412,948 (1) Comprises property, plant and equipment, goodwill and other intangible assets. Revenues from external customers and non-current assets are allocated to individual countries based on location of operations. No single customer represents 10% or more of the consolidated revenue. Disaggregation of revenue: Total of reportable HQ and Year ended December 31, 2021: Telecom Fintech segments Other elimination Consolidated Revenue Connectivity services 375,718 — 375,718 29,810 96 405,624 Sales of goods 67,392 — 67,392 9,334 — 76,726 Fintech services — 46,836 46,836 — — 46,836 Other services 1,065 — 1,065 4,152 — 5,217 External Customers 444,175 46,836 491,011 43,296 96 534,403 Intersegment 4,138 2,771 6,909 19,527 (26,436) — Total revenue 448,313 49,607 497,920 62,823 (26,340) 534,403 Thereof: Recognised over time 376,783 27,516 404,299 33,962 96 438,357 Recognised at point of time 67,392 19,320 86,712 9,334 — 96,046 444,175 46,836 491,011 43,296 96 534,403 Total of reportable HQ and Year ended December 31, 2020: Telecom Fintech segments Other elimination Consolidated Revenue Connectivity services 363,131 — 363,131 24,894 92 388,117 Sales of goods 61,495 — 61,495 7,983 — 69,478 Fintech services — 33,773 33,773 — — 33,773 Other services 433 — 433 3,125 — 3,558 External Customers 425,059 33,773 458,832 36,002 92 494,926 Intersegment 4,260 2,449 6,709 13,130 (19,839) — Total revenue 429,319 36,222 465,541 49,132 (19,747) 494,926 Thereof: Recognised over time 363,564 24,367 387,931 28,019 92 416,042 Recognised at point of time 61,495 9,406 70,901 7,983 — 78,884 425,059 33,773 458,832 36,002 92 494,926 Total of reportable HQ and Year ended December 31, 2019: Telecom Fintech segments Other elimination Consolidated Revenue Connectivity services 323,551 — 323,551 49,735 94 373,380 Sales of goods 57,677 — 57,677 6,450 — 64,127 Fintech services — 29,304 29,304 — — 29,304 Other services 469 — 469 3,325 — 3,794 External Customers 381,697 29,304 411,001 59,510 94 470,605 Intersegment 9,406 1,881 11,287 12,063 (23,350) — Total revenue 391,103 31,185 422,288 71,573 (23,256) 470,605 Thereof: Recognised over time 324,020 21,996 346,016 53,060 94 399,170 Recognised at point of time 57,677 7,308 64,985 6,450 — 71,435 381,697 29,304 411,001 59,510 94 470,605 |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 7. REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue is recognized to the extent that the Group has delivered goods or rendered services under an agreement, the amount of revenue can be reliably measured and it is probable that the economic benefits associated with the transaction will flow to the Group. Revenue is measured at the fair value of the consideration receivable, exclusive of value added taxes and discounts. The Group obtains revenue from providing mobile and fixed telecommunication services (access charges, voice and video calls, messaging, interconnect fees, fixed and mobile broadband, tv and musical content and connection fees), financial services, integration services, cloud services, tickets distribution, as well as selling equipment, accessories and software. Products and services may be sold separately or in bundle packages. The most significant part of revenue relates to prepaid contracts. Revenue for access charges, voice and video calls, rendering of cloud services, messaging, interconnect fees and fixed and mobile broadband is recognized as services are rendered. This is based upon either usage (minutes of traffic processed, volume of data transmitted) or passage of time (monthly subscription fees). Revenue from the sale of prepaid credit is deferred until such time as the customer consumes the services or the credit expires. Revenue from the provision of TV and music content is recognized as the Group renders the service and is recorded either at the gross amount billed to the customers or in the amount of commission fee receivable by the Group. Revenue from commission services for tickets distribution is recognized as services are rendered. Revenue from sales of goods (mainly mobile handsets, other mobile devices, software licences) is recognized when the significant risks and rewards of ownership have been transferred to the customer. For bundled packages, the Group accounts for individual products and services separately if they are distinct, which means that a product or service, as well as the customer benefit, is separately identifiable from other items in the bundled package and a customer can benefit from it. The arrangement consideration is allocated to each separate product and service, based on its relative fair value. The determined fair value of individual elements is generally based on prices at which the deliverable is regularly sold on a stand-alone basis after considering any appropriate volume discounts. The Group provides retrospective volume discounts under roaming agreements with international and local mobile operators. To estimate the variable consideration in relation to these discounts, the Group uses original data traffic adjusted on a monthly basis to reflect newly-available information. The resulting liability for the expected future discounts is recognized as a reduction of revenue within trade and other payables in the accompanying consolidated statement of financial position. For contracts that permit customers to return acquired mobile devices, the amount of recognized revenue is adjusted for expected product return or refunds, which are estimated based on the basis of historical data. The respective refund liability is recorded as provision in the accompanying consolidated statement of financial position. Revenue from the provision of financial services mainly relates to interest bearing assets of MTS Bank. Such revenue is recognized on an accrual basis using the effective interest method. Loan origination fees are deferred together with the related direct costs and are recognised as an adjustment to the effective interest rate of the loan. Comission revenue which is also a significant part of MTS Bank revenue is either recognized at the moment the related operation occurs, or during the period of customer contract duration. Revenue from integration and construction services mainly relates to project type contracts and is determined by reference to the stage of completion of each respective projects. The stage of completion is calculated using the input method – based on the proportion of costs incurred for work performed to date to the estimated total contract costs. Revenue is recognized cumulatively as total revenue under the project multiplied by percentage of completion as at reporting date. When it is probable that total contract costs will exceed the total contract revenue, the expected loss is recognized as an expense immediately. Contract balances Contract balances include trade receivables related to the recognized revenue, contract assets and contract liabilities. Trade receivables represent an unconditional right to receive consideration (primarily in cash). Contract assets represent accrued revenues that have not yet been billed to customers due to certain contractual terms other than the passage of time. This is the case in a bundled offering which combines the sale of a mobile device and the provision of mobile services for a fixed-period, where the mobile device is invoiced at a reduced price leading to the reallocation of a portion of amounts invoiced for mobile communication services to the supply of the mobile phone. The excess of the amount allocated to the mobile phone over the price invoiced is recognized as a contract asset and is thus transferred to trade receivables as the service is invoiced. The other part of contract assets relates to the Group’s rights to consideration for work completed but not yet billed for integration services projects. Contract liabilities represent amounts paid by customers to the Group before receiving the goods and/or services promised in the contract. This is the case for advances received from customers or amounts invoiced or amounts invoiced and paid for goods or services that are yet to be transferred. The following table provides information about receivables, contract assets and contract liabilities from contracts with customers: December 31, 2021 2020 Receivables 32,361 31,452 Contract assets 189 53 Total assets 32,550 31,505 Less current portion (20,638) (29,342) Total non-current assets 11,912 2,163 Contract liabilities: Mobile and fixed telecommunication services (22,064) (20,714) Other services (1,083) (694) Loyalty programme (451) (434) Total liabilities (23,598) (21,842) Less current portion 22,621 21,125 Total non-current liabilities (977) (717) Changes in the contract liabilities balances during the period are as follows: 2021 2020 Balance as of January 1 (21,842) (21,307) Revenue recognised that was included in the contract liability balance at the beginning of the period 18,712 17,531 Increase due to cash received, excluding amount recognised as revenue during the period (20,468) (18,438) Disposal of Nvision Group — 372 Balance as of December 31 (23,598) (21,842) The Group expects to recognize revenue related to performance obligations that were unsatisfied (or partially unsatisfied) as of December 31, 2021 as follows: 2022 2023-2027 2028-2032 Total Connectivity services 21,087 901 76 22,064 Other services 1,083 — — 1,083 Loyalty programme 451 — — 451 The total transaction price assigned to unsatisfied performance obligations is presented below: 2022 2023-2027 2028-2032 After 2032 Total Connectivity services 312 519 195 124 1,150 Integration services 111 178 44 — 333 Cost to obtain and fulfill a contract The Group capitalizes certain incremental costs incurred in acquiring or fullfilling a contract with a customer if the management expects these costs to be recoverable. The Group uses a practical expedient from IFRS 15 which allows to expense contract costs as incurred when the expected contract duration is one year or less. Costs of acquiring a contract include commissions paid to a third-party distributors as well as the associated remuneration of the Group’s commercial employees for obtaining a contract with a customer with the expected duration of more than twelve months. These costs are amortized on a straight-line basis over the average life of a long-lived subscriber. Costs to fulfill a contract mainly relate to costs of equipment transferred to the subscribers required for the provision of services. These costs are amortized on a straight-line basis generally for the period of average subscriber life. As of December 31, 2021 and 2020 the balances of cost to obtain and fulfill contracts capitalized by the Group amounted to: December 31, 2021 2020 Cost to obtain contracts Gross book value 14,633 14,268 Accumulated amortization (6,736) (6,600) Cost to fulfill contracts Gross book value 5,240 4,081 Accumulated amortization (2,279) (1,628) Amortization expense related to cost to obtain and fulfill contracts recognized for the years ended December 31, 2021, 2020 and 2019 amounted RUB 4,076 million, RUB 3,819 million and RUB 3,940 million, respectivly. There was no impairment loss relating to the costs capitalized. |
SELLING, GENERAL AND ADMINISTRA
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 8. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, general and administrative expenses for the years ended December 31, 2021, 2020 and 2019 comprised the following: 2021 2020 2019 Salaries and social contributions 54,285 48,865 50,451 Advertising and marketing expenses 12,539 10,652 10,930 General and administrative expenses 8,085 7,526 7,653 Universal service fund 3,813 3,670 3,587 Consulting expenses 3,626 3,418 2,626 Cash collection commission 3,533 3,645 3,504 Dealers commission 3,434 3,385 3,081 Utilities and maintenance 2,550 2,255 2,809 Taxes other than income tax 1,062 1,845 2,486 Other personnel expenses 1,857 1,546 1,664 Other 1,455 1,176 1,142 Total 96,239 87,983 89,933 |
FINANCE INCOME AND COSTS
FINANCE INCOME AND COSTS | 12 Months Ended |
Dec. 31, 2021 | |
FINANCE INCOME AND COSTS | |
FINANCE INCOME AND COSTS | 9. FINANCE INCOME AND COSTS Finance income and costs for the years ended December 31, 2021, 2020 and 2019 comprised the following: 2021 2020 2019 Interest expense: – Loans and notes 29,432 28,174 30,105 – Amortization of debt issuance costs 109 97 489 – Lease obligations 11,820 12,277 13,416 – Provisions: unwinding of discount 165 138 113 Total interest expense 41,526 40,686 44,123 Loss on financial instruments — 373 780 Other finance costs 143 85 151 Total finance costs 41,669 41,144 45,054 Less: amounts capitalized on qualifying assets (1) (533) (426) (550) Debt modification/derecognition and other loss 216 1,366 2,862 Finance costs 41,352 42,084 47,366 Finance income on loans and receivables: – Interest income on bank deposits 1,468 2,282 3,318 – Interest income on loans issued 52 17 91 – Other finance income 998 1,138 943 Finance income 2,518 3,437 4,352 Net finance costs 38,834 38,647 43,014 (1) The annual weighted average capitalization rates of 6.8 %, 6.9 % and 8.1 % were used to determine the amount of capitalized interest for the years ended December 31, 2021, 2020 and 2019, respectively. |
OTHER NON-OPERATING (INCOME)_EX
OTHER NON-OPERATING (INCOME)/EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
OTHER NON-OPERATING (INCOME)/EXPENSES | |
OTHER NON-OPERATING (INCOME)/EXPENSES | 10. OTHER NON-OPERATING (INCOME)/EXPENSES Other non-operating (income)/expenses for the years ended December 31, 2021, 2020 and 2019 comprised the following: 2021 2020 2019 Net forex exchange (gain) / loss 560 10,380 (5,266) Loss/(gain) arising on derivatives 345 (13,443) 8,297 Net gain/(loss) arising on financial assets measured at FVTPL (139) (1,893) 528 Net gain/(loss) arising on financial liabilities measured at FVTPL — (53) 1,197 Impairment of investments and loans given — 1,392 616 Other (342) 553 2,449 Total 424 (3,064) 7,821 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2021 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 11. DISCONTINUED OPERATIONS UKRAINE On November 22, 2019, the Group entered into a sale agreement to dispose of Preludium B.V., 100% owner of PJSC “Vodafone Ukraine”, “PTT Telecom Kyiv”, LLC “VF Retail” and LLC “IT SmartFlex”, which carried out the Group’s operations in Ukraine and constituted ‘Ukraine’ reporting segment. The disposal was effected in order to concentrate on development of the Group’s core Russian market. The disposal was completed on December 3, 2019, and the results of operations in Ukraine were reported as discontinued operations in the accompanying consolidated statements of profit or loss. The consolidated statements of financial position and consolidated statements of cash flows for all periods presented were not retrospectively restated on discontinued operations. As of December 3, 2019, the carrying amounts of assets and liabilities pertaining to the discontinued operation and reconciliation of the loss on disposal were as follows: Property, plant and equipment 26,037 Right-of-use assets 8,175 Intangible assets 18,124 Goodwill 114 Other non-current assets 1,534 Other current assets 10,760 Cash and cash equivalents 4,181 Non-current liabilities (9,009) Current liabilities (17,979) Accumulated other comprehensive loss 7,948 Total consideration (44,386) In the form of: Cash and cash equivalents (USD 645 million) (41,567) Deferred consideration (USD 12 million) (774) Fair value of contingent consideration (variable earn-out) as of December 3, 2019 (USD 32 million) (2,045) Loss on disposal 5,499 Net cash inflow arising on disposal: 37,386 Cash consideration received 41,567 Less: cash and cash equivalents disposed of (4,181) Total consideration comprised of cash payment, deferred consideration and contingent consideration. Cash payment of USD 645 million (RUB 41,567 million as of December 3, 2019) was received in December 2019. In June 2020, the Group and the purchaser agreed on the amount of adjustment to the cash payment based on finalized financial statements results as of disposal date and the Group recognized additional income in amount of USD 28 million (RUB 2,101 million as of payment date in September, 2020) in discontinued operations in the consolidated statement of profit or loss. The deferred consideration was settled in cash by the purchaser in September 2020 in RUB amount of RUB 897 million, representing equivalent of USD 12 million as of the date of payment. In the event the financial results of discontinued operation achieve certain performance criteria for the periods starting 2019 and ending 2022 as specified in an ‘earn out’ clause of the sale agreement, additional contingent consideration will be receivable. As of December 3, 2019 the Group recognized contingent consideration receivable as a financial asset at fair value through profit or loss in the amount of RUB 2,045 million. The fair value of the financial asset amounted to RUB 2,631 million as of December 31, 2020 and RUB 1,867 million as of December 31, 2021. The results of the discontinued operation in Ukraine, which have been included in the profit for the year, were as follows: For the year ended December 31, 2021 2020 2019 Revenue — — 36,675 Expenses — — (28,564) Profit before tax — — 8,111 Attributable tax expense — — (2,018) Profit for the period — — 6,093 Profit/(loss) on disposal — 2,101 (5,499) Currency revaluation gain/(loss) on deferred consideration — 154 (30) Earn-out revaluation - fair value measurement 377 645 48 Earn-out revaluation - Currency revaluation gain/(loss) 93 (27) (80) Net income attributable to discontinued operations 470 2,873 532 Cash flows from (used in) discontinued operation were presented as follows: For the year ended December 31, 2021 2020 2019 Net cash provided by operating activities — — 17,343 Net cash provided by/(used in) investing activities 1,234 2,998 (13,046) Net cash used in financing activities — — (1,114) NVISION GROUP On October 30, 2020, the Group entered into a sale agreement with Sistema to dispose of 100% share in JSC “Nvision Group”, which provided integration services, as well as the sales of software, and constituted “System Integrator” operating segment included in “Other” reportable segment. The disposal was completed on October 30, 2020, the results of operations of “System Integrator” operating segment were reported as discontinued operations in the accompanying consolidated statements of profit or loss. The consolidated statements of financial position and consolidated statements of cash flows for all periods presented were not retrospectively restated on discontinued operations. As of October 30, 2020, the carrying amounts of discontinued operation net assets and reconciliation of the loss on disposal were as follows: Property, plant and equipment 95 Intangible assets 245 Other non-current assets 220 Other current assets 2,912 Cash and cash equivalents 285 Non-current liabilities (98) Current liabilities (3,281) Accumulated other comprehensive loss 3 Total consideration (369) Satisfied by: Cash and cash equivalents (369) Loss on disposal* 12 Net cash inflow arising on disposal: 84 Cash consideration received 369 Less: cash and cash equivalents disposed of (285) * Included in additional paid-in capital in consolidated statement of changes in shareholders’ equity, analogically to the purchase of JSC “Nvision Group” from Sistema in 2015 Cash consideration in amount of RUB 369 million was settled in October and December 2020. The results of the discontinued operation of JSC “Nvision Group”, which have been included in the profit for the year, were as follows: Year ended December 31, 2020 2019 Revenue 10,051 12,898 Expenses (11,305) (14,263) Loss before tax (1,254) (1,365) Attributable tax expense (1,003) (83) Loss for the period (2,257) (1,448) Net loss attributable to discontinued operations (2,257) (1,448) Cash flows from (used in) discontinued operation are presented as follows: For the year ended December 31, 2020 2019 Net cash used in by operating activities (1,466) (55) Net cash provided by investing activities 664 347 Net cash provided by/(used in) financing activities 748 (372) The results of the discontinued operation of JSC “Nvision Group”, which have been included in the consolidated statement of profit or loss and consolidated statement of cash flows for the year ended December 31, 2021 equaled nil. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAX | |
INCOME TAX | 12. INCOME TAX Income taxes of the Group’s Russia-incorporated entities have been calculated in accordance with Russian legislation and are based on the taxable profit for the period. The corporate income tax rate in Russia is 20%. The withholding tax rate on dividends paid within Russia is 13%. The foreign subsidiaries of the Group pay withholding taxes in their respective jurisdictions. Deferred tax assets and liabilities are recognized for temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases of assets and liabilities that will result in future taxable or deductible amounts. The deferred tax assets and liabilities are measured using the enacted or substantially enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Significant components of income tax expense were as follows; 2021 2020 2019 Current income tax charge 20,057 15,170 20,757 Prior period tax adjustments (133) (509) (90) Total current income tax 19,924 14,661 20,667 Deferred tax (4,521) 1,465 (5,000) Income tax expense on continuing operations 15,403 16,126 15,667 Income tax expense on continuing operations excludes the amounts from the discontinued operations of nil, RUB (1,003) million and RUB 1,935 million for the years ended December 31, 2021, 2020 and 2019, respectively, which have been included in profit / (loss) from discontinued operations in the accompanying consolidated statements of profit or loss (Note 11). The statutory income tax rates in jurisdictions in which the Group operates for 2021 and 2020 were as follows: Russia – 20%, Armenia – 18%, Turkmenistan – 8%, Czech Republic – 19%, for 2019 were as follows: Russia and Armenia – 20%, Turkmenistan – 8%, Czech Republic – 19%. The Russian statutory income tax rate of 20% reconciled to the Group’s effective income tax rate for the years ended December 31, 2021, 2020 and 2019 as follows: 2021 2020 2019 Statutory income tax rate for the year 20.0 % 20.0 % 20.0 % Adjustments: Expenses not deductible for tax purposes 0.1 1.3 2.1 Prior periods tax effects (0.2) (0.7) (0.1) Different tax rate of subsidiaries (0.8) (0.8) (0.4) Withholding tax on distributed and undistributed profits 1.6 1.5 1.9 Change in fair value of derivative financial instruments — — 0.2 Changes in recognized deferred tax assets (0.9) (0.1) (0.5) Other (0.4) (0.4) (0.2) Effective income tax rate 19.4 % 20.8 % 23.0 % The Group reported the following deferred income tax assets and liabilities in the consolidated statement of financial position: 2021 2020 Deferred tax assets 11,683 8,778 Deferred tax liabilities (17,901) (19,191) Net deferred tax liabilities (6,218) (10,413) Movements in the deferred tax assets and liabilities for the year ended December 31, 2021 were as follows: Recognised in other December 31, Recognised in compre-hensive Effect of December 31, 2020 profit / loss income disposals 2021 Assets / (liabilities) arising from tax effect of: Property, plant and equipment (18,250) (1,352) 32 (110) (19,680) Other intangible assets (6,314) 998 — (142) (5,458) Potential distributions from/ to Group’s subsidiaries/ associates and joint ventures (2,506) 166 (86) — (2,426) Licenses (1,699) 24 — — (1,675) Customer base (470) 107 — (229) (592) Capitalization of cost to obtain and fulfill contracts (1,668) (162) — — (1,830) Accrued expenses for services 7,158 588 (1) 69 7,814 Write-down of inventories 413 (178) — 3 238 Allowance for ECL 2,713 533 3 5 3,254 Lease obligations 29,910 1,181 (1) 3 31,093 Right-of-use assets (25,686) (392) 2 — (26,076) Loss carryforward 3,961 1,801 — 95 5,857 Contract liabilities 1,430 176 — — 1,606 Debt modification (123) 50 — — (73) Hedge and other 718 981 31 — 1,730 Net deferred tax liability (10,413) 4,521 (20) (306) (6,218) Movements in the deferred tax assets and liabilities for the year ended December 31, 2020 were as follows: \ Recognised in other December 31, Recognised in compre-hensive Effect of December 31, 2019 profit / loss income acquisitions 2020 Assets / (liabilities) arising from tax effect of: Property, plant and equipment (17,954) (318) 19 3 (18,250) Other intangible assets (6,564) 314 — (64) (6,314) Potential distributions from/ to Group’s subsidiaries/ associates and joint ventures (2,430) (42) (34) — (2,506) Licenses (1,739) 47 (7) — (1,699) Customer base (576) 106 — — (470) Capitalization of cost to obtain and fulfill contracts (1,448) (220) — — (1,668) Accrued expenses for services 7,929 (710) 5 (66) 7,158 Write-down of inventories 681 (211) 10 (67) 413 Allowance for ECL 2,947 (112) 3 (125) 2,713 Lease obligations (1) 30,953 (1,052) 12 (3) 29,910 Right-of-use assets (1) (27,433) 1,761 (14) — (25,686) Loss carryforward 4,634 56 — (729) 3,961 Contract liabilities 1,230 203 — (3) 1,430 Debt modification (433) 310 — — (123) Hedge and other 2,312 (1,594) — — 718 Net deferred tax liability (7,891) (1,462) (6) (1,054) (10,413) (1) Previously, the deferred tax on a lease under IFRS 16 was accounted under the net approach, the changes do not affect the total amount of deferred tax. The Group recognizes deferred income tax on future dividend distributions from subsidiaries/ associates and joint ventures which are based on the cumulative undistributed earnings of those subsidiaries in accordance with local statutory accounting regulations. The Group recognizes deferred tax assets in respect of tax losses carried forward to the extent that realization of tax losses against future taxable profit is probable. Deferred tax assets related to tax losses of the Group’s subsidiaries are recognized according to the fact that certain tax planning opportunities are available to these subsidiaries that will create taxable profit in the period in which the unused tax losses can be utilized. The amount of the deferred tax asset considered realizable, however, could be remeasured if estimates of future taxable income are changed. Federal law 401-FZ dated November 30, 2016 cancelled the time limit of prior periods’ tax losses carryforward, which had been previously restricted to 10 years. Furthermore, the law specified that for the years 2017-2024 prior periods’ tax losses carried forward should not exceed 50% of the tax base. Unused tax losses, for which deferred tax assets were not recognized in the consolidated statements of financial position as of December 31, 2021 and 2020 amounted to RUB 40,898 million and RUB 43,393 million, respectively. The Group accrued RUB 160 million and RUB 595 million as of December 31, 2021 and 2020, respectively, as a component of income tax payable in relation to uncertain income tax positions. A provision is recognised for those matters for which the tax determination is uncertain but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable. The Group early adopted the IAS 12 amendments related to assets and liabilities arising from a single transaction and presented separately a deferred tax asset and a deferred tax liability for temporary differences arising on initial recognition of a lease and a decommissioning provision for the years ended December 31, 2021 and 2020. Movements in the deferred tax assets and liabilities for the year ended December 31, 2020 were restated to reflect the effects of early adoption. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 13 The following table sets forth the computation of earnings per share for the years ended December 31: 2021 2020 2019 Numerator: Profit for the year from continuing operations attributable to the owners of the company 63,003 60,796 51,713 Profit for the year from discontinued operations attributable to the owners of the company 470 616 2,528 Denominator, in thousands: Weighted-average ordinary shares outstanding 1,693,244 1,760,468 1,780,935 Employee stock options 8,541 1,310 2,682 Weighted-average diluted shares outstanding 1,701,785 1,761,778 1,783,617 Earnings per share – basic, Russian Rubles 37.49 34.88 30.46 Basic EPS from continuing operations 37.21 34.53 29.04 Basic EPS from discontinued operations 0.28 0.35 1.42 Earnings per share – diluted, Russian Rubles 37.30 34.86 30.41 Diluted EPS from continuing operations 37.02 34.51 28.99 Diluted EPS from discontinued operations 0.28 0.35 1.42 |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2021 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | 14. CASH AND CASH EQUIVALENTS Cash and cash equivalents represent cash on hand and in bank accounts, as well as short-term bank deposits, which have original maturities of less than three months. Other short-term highly liquid investments are treated as cash equivalents only if they are held for the purpose of meeting short-term cash commitments, are readily convertible to known amounts of cash and are subject to insignificant risk of change in value. Cash and cash equivalents comprised the following: December 31, 2021 2020 Cash and cash equivalents at banks and on hand in: Russian Rubles 17,911 39,076 US Dollars 1,766 10,597 Euro 2,899 6,433 Turkmenian Manat 367 431 Other 816 959 Short-term deposits with an original maturity of less than 92 days: Russian Rubles 16,594 27,857 Other 237 52 Total cash and cash equivalents 40,590 85,405 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 15. SHORT-TERM INVESTMENTS Short-term investments represent investments in loans and time deposits, which have original maturities of longer than 92 days and are repayable in less than twelve months, as well as investment in debt and equity securities. Deposits, loans and debt securities are carried at amortized cost as they are held to collect contractual cash flows in the form of payments of principal and interest. Assets in Sistema Capital trust management as well as mutual funds are carried at fair value through profit and loss (“FVTPL”), as this portfolio of assets is neither held to collect contractual cash flows nor held both to collect contractual cash flows and to sell financial assets. Short-term investments are presented net of allowance for expected credit losses (“ECL”). Loans to customers issued by MTS Bank are presented separately within Bank deposits and loans in the accompanying consolidated statements of financial position. The Group’s short-term investments comprised the following: December 31, Category 2021 2020 Mutual funds (Notes 28) At FVTPL 10,719 10,699 Assets in Sistema-Capital trust management (Notes 28) At FVTPL 10,374 10,313 Notes / loans At amortized cost 6,383 1,007 Deposits At amortized cost 1,499 1,415 Short-term investments, gross 28,975 23,434 Allowance for ECL (3) — Total short-term investments 28,972 23,434 The main change in the amount of short-term investments occurred due to the reclassification of debt securities from other investments in line with the maturity date. |
INVESTMENTS IN ASSOCIATES AND J
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES | 12 Months Ended |
Dec. 31, 2021 | |
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES | |
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES | 16. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES Associates are those entities where the Group exercises significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not equate to control or joint control over those policies. Associates are accounted for using the equity method, with exception of associates held by the Group’s venture capital subsidiary, MTS Ventures Limited. The Group elected to measure venture investments in associates at fair value through profit or loss in accordance with IFRS 9. Investments in associates are accounted for using the equity method are recognized at cost at the time of acquisition and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income. The carrying amount of the investment in such entities may include goodwill as the positive difference between the cost of the investment and Group’s proportionate share in the fair-values of the entity’s identifiable assets and liabilities. Joint ventures are joint arrangements whereby the parties that have joint control of the arrangement and have rights to the net assets of the arrangement. The Group recognizes its interest in a joint venture where it has joint control of the investment and accounts for that investment using the equity method. The Group presents its share in profits or losses in associates and joint ventures accounted for using the equity method within operating profit if those interests are viewed as part of Group’s core operations. As of December 31, 2021, MTS Belarus, Zelenaya Tochka, Factorin and Monumental Vision were considered as part of the Group’s core operating activity. Shares in profits and losses of other Group’s associates and joint ventures were presented as non-operating items. The Group’s investments in associates and joint ventures accounted for using the equity method in the consolidated statements of profit or loss comprised the following: Country of December 31, December 31, operations Operating activity 2021 2020 MTS Belarus Belarus telecommunications 6,265 5,124 Zelenaya Tochka Russia telecommunications 141 1,260 YouDo Russia classifieds 705 724 Sistema-Rentnaya Nedvizhimost Russia property investments mutual fund — 636 Other unquoted companies Russia 1,319 811 Total investments in associates accounted for using the equity method 8,430 8,555 Other unquoted companies accounted for at fair value through profit or loss Russia 305 — Total investments in associates 8,735 8,555 Associates and joint ventures accounted for using the equity method and presented within operating profit in the consolidated statements of profit or loss MTS Belarus The reconciliation of summarized financial information of MTS Belarus to the carrying amount of the Group’s interest in associate is presented as follows: December 31, December 31, 2021 2020 Assets Non-current assets 19,030 20,008 Current assets 15,386 12,705 Liabilities Non-current liabilities (9,062) (11,257) Current liabilities (12,568) (10,999) Total identifiable net assets 12,786 10,457 The Group’s share in associate 49 % 49 % The Group’s share of identifiable net assets 6,265 5,124 Carrying amount of the Group’s interest 6,265 5,124 The composition of the Group’s share of income of MTS Belarus is as follows: Year ended December 31, 2021 2020 2019 Revenue 39,383 36,121 32,593 Profit for the year (10,379) (10,267) (9,354) The Group’s share of the profit of the associate for the year (5,086) (5,031) (4,583) Other comprehensive income/(loss) for the year (183) 397 842 Total comprehensive income for the year (10,562) (9,870) (8,512) The Group’s share of total comprehensive income of the associate for the year (5,175) (4,836) (4,171) Dividends received 4,034 4,212 3,821 Zelenaya Tochka In February 2020, the Group purchased 51% stakes in Achemar Holdings Limited and Clarkia Holdings Limited, owners of the operational companies of “Zelenaya Tochka” Group, fixed-line operator in multiple regions of Russia. Purchase price comprised of cash payment in total amount of RUB 1,370 million. Purchase conditions included call and put options for the remaining stakes in Achemar Holdings Limited and Clarkia Holdings Limited, and share of purchase price in amount of RUB 166 million related to the fair value of call and put options acquired. The purchase of 51% stake was accounted as investment in joint venture based on the terms of the shareholders’ agreement. In April 2021 the Group performed a step acquisition and obtained control over Achemar Holdings Limited, owner of Stavropol and Tambov subsidiaries of Zelenaya Tochka (Note 5). As of the acquisition date the Group remeasured the previously held equity interest in Achemar Holdings Limited from RUB 1,166 million to fair value of RUB 1,582 million and recognized the resulting gain of RUB 416 million in the operating share of the profit of the associates and joint ventures in the accompanying consolidated statement of profit or loss. The Group continued to account for its investment in other operational companies of Zelenaya Tochka, owned by Clarkia Holdings Limited, as investment in joint venture. Fancy Show In 2020 the Group formed a partnership with “LLC Fancy Show”, for the purposes of production, release and promotion of “Chess” musical in Russia. The Group received the right to 36% net profit of the partnership and accounted for investment as investment in joint venture. The joint venture was ceased in September 2021. Factorin In July 2021 the Group purchased 51% stake in Amaran Limited, 100% owner of LLC Factorin (“Factorin”), for RUB 867 million. Factorin is the developer and owner of blockchain-based platform for trade finance transactions with a focus on supply chain finance and invoice factoring. The purchase of 51% stake was accounted as investment in joint venture based on the terms of the shareholders’ agreement. The following table is the aggregate financial information of investments in individually insignificant joint ventures, held by the Group and presented within operating profit in the consolidated statements of profit or loss: Year ended December 31, 2021 2020 Loss for the year 114 3 The Group’s share of the loss of the joint venture for the year 32 17 Other comprehensive income for the year — — Total comprehensive income for the year 114 3 Gain on remeasurement of previously held interest upon acquisition (415) — Compensation of losses (96) — The Group’s share of total comprehensive (income)/loss of the joint venture for the year (479) 17 Associates and joint ventures accounted for using the equity method and presented within non-operating items in the consolidated statements of profit or loss YouDo In September 2018, the Group acquired a 13.68% ownership interest in Youdo Web Technologies Limited (YouDo), a Russian online service provider matching freelance labor supply to demand for everyday and business tasks, for a cash contribution of RUB 824 million. Though the Group holds less than 20% of the equity interests in YouDo, nevertheless it has significant influence over the investee based on its ownership of equity shares, representation on the investee’s Board of Directors and certain additional rights related to the decision-making process on key issues. Sistema-Rentnaya Nedvizhimost 1 mutual fund In December 2018, MTS Bank sold 40.26% share in a property investments mutual fund “Sistema-Rentnaya Nedvizhimost” to Business Nedvizhimost, subsidiary of Sistema, for cash consideration of RUB 450 million. The Group classified the remaining investment in the mutual fund as investment in joint venture, based on the existence of a joint decision-making process and the rights to net assets of the mutual fund. The Group applied the equity method of accounting to its remaining share in the mutual fund. In 2021 the mutual fund was ceased by its owners. SWIPGLOBAL In December 2019, the Group acquired a 15.01% ownership interest in SWIPGLOBAL Limited (SWIPGLOBAL), a parent company of LLC “Smart wallet”, Russian provider of authorization and payment solutions, for a cash contribution of RUB 75 million. Though the Group holds less than 20% of the equity interests in SWIPGLOBAL, nevertheless it has significant influence over the investee based on its ownership of equity shares, representation on the investee’s Board of Directors and certain additional rights related to the decision-making process on key issues. Ozon Holdings Limited In March 2019, the Group disposed its previously held 18.69% interest in OZON to Sistema for RUB 7,902 million (of which RUB 3,000 million was paid by Sistema in 2019, RUB 2,450 million in 2020 and RUB 2,452 million in 2021). As a result of the transaction the Group recognized a gain on disposal which was included in the non-operating share of the income of the associates and joint ventures in the accompanying consolidated statement of profit or loss: 2019 Proceeds from disposal 7,902 Less: carrying amount of investment on the date of disposal (4,065) Gain recognized* 3,837 * A current tax expense of RUB 420 million is attributable to the aforementioned gain. The following table is the aggregate financial information of investments in individually insignificant associates and joint ventures, held by the Group and presented within non-operating items in the consolidated statements of profit or loss: Year ended December 31, 2021 2020 2019 (Profit)/loss for the year (856) (1,048) 2,448 The Group’s share of the (profit)/loss of the associates and joint ventures for the year (181) (273) 341 Other comprehensive income for the year — — — Total comprehensive (income)/loss for the year (856) (1,048) 2,448 The Group’s share of total comprehensive (income)/loss of the associate for the year (181) (273) 341 Investments in venture capital associates The following table is the aggregate financial information of investments in individually insignificant associates measured at fair value through profit or loss in accordance with IFRS 9: December 31, Fair value December 31, 2021 adjustment Investment 2020 Total investments in associates measured at fair value through profit or loss 305 — 305 — |
OTHER INVESTMENTS
OTHER INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
OTHER INVESTMENTS | |
OTHER INVESTMENTS | 17 Other investments consist primarily of long-term deposits, which are repayable in more than a year, loans, debt securities and equity holdings in private companies. Deposits, loans and notes are carried at amortized cost as they are held to collect contractual cash flows in the form of payments of principal and interest. Loans to customers issued by MTS Bank are presented separately within Bank deposits and loans to customers. Other investments are presented net of allowance for expected credit losses (ECL). Other investments of the Group comprised the following: December 31, Category 2021 2020 Debt securities At amortized cost 2,810 8,764 Investments in equity FVPL 1,228 400 Loans and unquoted notes At amortized cost 555 328 Other investments (Gross) 4,593 9,492 Allowance for ECL (2) (4) Total other investments 4,591 9,488 The main change in the amount of other investments occurred due to the reclassification of debt securities to short-term investments in line with the maturity date. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other receivables [abstract] | |
TRADE AND OTHER RECEIVABLES | 18 Trade and other receivables are carried at transaction price. The carrying value of all trade receivables is reduced by appropriate allowances for ECL. For trade receivables the Group applies a simplified approach and calculates ECL based on lifetime expected credit losses. For receivables from subscribers and dealers and partially for other trade receivables the allowance for ECL is computed using the provision matrix. The provision rates are based on days past due for groupings of various customer segments with similar loss patterns. The calculation reflects the probability-weighted outcome and all reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Generally, receivables from subscribers are written-off if past due for more than 180 days on average based on category of subscriber. Receivables other than from subscribers are written-off upon the expiration of the limitation period or before based on results of internal investigations. MTS Group accounts for Receivables from handset sales financing as a part of current trade and other receivables and non-current other non-financial assets. These receivables are measured based on fair value basis using effective rate approach. Receivables from handset sales financing are written off against the allowance when deemed uncollectible, including by means of foreclosure on the provision. Write off of receivables takes place when the Group has no reasonable expectations of recovering the financial asset either entirely or a portion of it. Trade and other receivables current and non-current comprised the following: December 31, 2021 2020 Subscribers 15,240 12,704 Receivables from handset sales financing 12,161 15,785 Other trade receivables 6,213 4,954 Receivables from the sharing agreement 2,164 73 Interconnect 1,640 1,794 Integration services 1,584 1,512 Bonuses from suppliers 892 342 Roaming 800 1,072 Factoring 282 — Dealers 161 158 Other receivables 2,194 1,260 Allowance for ECL (3,536) (4,623) Trade and other receivables, total 39,795 35,031 Less non-current portion (1,898) (2,163) Trade and other receivables, current 37,897 32,868 The analysis of the age of trade and other accounts receivables and the respective allowance for ECL as of December 31, 2021: Receivables from subscribers and dealers and other trade Loss allowance receivables assessed for Weighted- (based on impairement based on provision average Gross carrying provision matrix loss rate amount matrix) Credit-impaired Current 1 % 2,560 (27) No 1 - 30 days past due 3 % 10,848 (332) No 31 - 60 days past due 32 % 583 (189) No 60 - 90 days past due 45 % 355 (161) No More than 90 days past due 78 % 1,055 (818) Yes Total 10 % 15,401 (1,527) Receivables from the sharing agreement, interconnect, integration services and other Weighted- Loss allowance receivables based on individual average Gross carrying (individually approach loss rate amount assessed) Credit-impaired Current 2 % 9,407 (193) No 1 - 30 days past due 1 % 2,219 (8) No 31 - 60 days past due 1 % 1,119 (16) No 60 - 90 days past due 5 % 624 (31) No More than 90 days past due 36 % 2,400 (865) Yes Total 7 % 15,769 (1,113) Loss allowance Weighted- (based on Receivables from handset sales average Gross carrying provision financing loss rate amount matrix) Credit-impaired Current 2 % 10,948 (180) No 1 - 30 days past due 12 % 289 (34) No 31 - 60 days past due 47 % 94 (45) No 60 - 90 days past due 58 % 74 (43) No More than 90 days past due 78 % 756 (594) Yes Total 7 % 12,161 (896) The analysis of the age of trade and other accounts receivables and the respective allowance for ECL as of December 31, 2020: Receivables from subscribers and dealers and other trade Loss allowance receivables assessed for Weighted- (based on impairment based on provision average Gross carrying provision matrix loss rate amount matrix) Credit-impaired Current 3 % 2,087 (62) No 1 - 30 days past due 5 % 9,029 (478) No 31 - 60 days past due 41 % 466 (190) No 60 - 90 days past due 59 % 384 (225) No More than 90 days past due 81 % 896 (727) Yes Total 13 % 12,862 (1,682) Receivables from the sharing agreement, interconnect, integration services and other Weighted- Loss allowance receivables based on individual average Gross carrying (individually approach loss rate amount assessed) Credit-impaired Current 3 % 7,966 (227) No 1 - 30 days past due 1 % 825 (11) No 31 - 60 days past due 2 % 459 (11) No 60 - 90 days past due 10 % 227 (23) No More than 90 days past due 69 % 1,530 (1,069) Yes Total 12 % 11,007 (1,341) Loss allowance Weighted- (based on Receivables from handset sales average Gross carrying provision financing loss rate amount matrix) Credit-impaired Current 2 % 13,943 (245) No 1 - 30 days past due 15 % 331 (50) No 31 - 60 days past due 53 % 102 (54) No 60 - 90 days past due 65 % 65 (43) No More than 90 days past due 90 % 1,344 (1,208) Yes Total 10 % 15,785 (1,600) The following table summarizes changes in the allowance for expected credit losses for the year ended December 31, 2021, 2020 and 2019: 2021 2020 2019 Balance, beginning of the year (4,623) (4,203) (4,318) Allowance for ECL (1,135) (3,382) (4,290) Accounts receivable written off 2,232 2,719 4,276 Disposal/(Acquisition) of subsidiaries (10) 243 129 Balance, end of the year (3,536) (4,623) (4,203) |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | |
INVENTORIES | 19 Inventories are stated at the lower of cost or net realizable value. Inventory cost is determined using the weighted average cost method. Handsets and accessories held for sale are expensed when sold. The Group regularly assesses its inventories for obsolete and slow-moving stock. Inventory and spare parts comprised the following: December 31, 2021 2020 Handsets and accessories 15,201 12,827 Advertising and other materials 1,934 964 Spare parts for telecommunication equipment 180 110 SIM cards and prepaid phone cards 853 726 TV equipment for resale 449 425 Software and equipment for installation and resale 364 152 Total inventories 18,981 15,204 Other materials mainly consist of automobile and IT components, stationery, fuel and auxiliary materials. Spare parts for telecommunication equipment included in the inventory are expected to be utilized within twelve months of the year end. Expenses for writing inventory down to net realisable value were included in cost of goods in the consolidated statement of profit or loss. For the years ended December 31, 2021, 2020 and 2019, cost of goods comprised the following expenses: 2021 2020 2019 Amount of inventories recognized as an expense 70,788 62,587 56,761 Inventory obsolescence provision 1,817 1,465 2,564 Reversal of obsolescence provision (361) (570) (453) Total cost of goods 72,244 63,482 58,872 The reversal of the inventory obsolescence provision relates to handsets and accessories sold over the course of the Group’s promotion campaigns. Inventories were sold with a positive margin. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 20. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, including improvements, are stated at cost. Property, plant and equipment with a useful life of more than one year is capitalized at historical cost and depreciated on a straight-line basis over its expected useful life, as follows: Network and base station equipment: Network infrastructure 3-50 years Other 3-20 years Land and buildings: Buildings 7-99 years Leasehold improvements the term of the lease Office equipment, vehicles and other: Office equipment 2-7 years Vehicles 2-10 years Other 2-25 years The estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The gain or loss arising on the disposal of an item of property, plant and equipment is determined as the difference between any sale proceeds and the carrying amount of the asset and is recognised in the consolidated statement of profit or loss. Construction in progress and equipment held for installation is not depreciated until the constructed or installed asset is ready for its intended use. Maintenance and repair costs are expensed as incurred, while upgrades and improvements are capitalized. Borrowing costs Balances of cost, accumulated depreciation, net book value as of December 31, 2021, 2020 and 2019 and movements of property, plant and equipment for the year ended December 31, 2021, 2020 and 2019 were as follows: Construction Office in progress Network and equipment, and base station Land and vehicles and equipment for equipment buildings other installation Total Cost January 1, 2019 593,133 33,834 54,287 25,457 706,711 Additions 4,162 39 1,117 64,398 69,716 Transferred into use 51,130 1,803 12,919 (65,852) — Arising on business combinations 194 27 73 4 298 Transfer to assets held for sale (1,573) 555 — — (1,018) Disposal (26,870) (428) (3,091) (186) (30,575) Disposal of VF Ukraine (Note 11) (62,196) (2,128) (6,966) (2,060) (73,350) Other 730 1,042 (1,125) 80 727 Foreign exchange differences 1,889 (188) 55 55 1,811 December 31,2019 560,599 34,556 57,269 21,896 674,320 Additions (173) 434 729 74,032 75,022 Transferred into use 53,005 1,317 12,286 (66,608) — Arising on business combinations 578 4 6 — 588 Disposal of NVISION GROUP (Note 11) — — (314) (18) (332) Transfer to assets held for sale (2,890) (475) (34) (3) (3,402) Disposal (38,293) (447) (4,405) (255) (43,400) Other (4) 675 30 35 736 Foreign exchange differences 2,286 495 520 74 3,375 December 31,2020 575,108 36,559 66,087 29,153 706,907 Additions 2,432 38 801 75,450 78,721 Transferred into use 57,666 748 11,499 (69,913) — Arising on business combinations 973 4,601 605 204 6,383 Transfer to assets held for sale (992) (1) (24) (27) (1,044) Disposal (44,394) (559) (5,542) 334 (50,161) Other (341) 482 159 (137) 163 Foreign exchange differences 1,306 10 170 12 1,498 December 31,2021 591,758 41,878 73,755 35,076 742,467 Accumulated depreciation and impairment January 1, 2019 (380,014) (10,217) (40,037) — (430,268) Charge for the year (47,905) (1,148) (5,064) — (54,117) Transfer to assets held for sale 762 (76) (1) — 685 Disposal 26,163 256 2,709 — 29,128 Disposal of VF Ukraine (Note 11) 40,717 1,056 5,540 — 47,313 Other (962) (616) 628 — (950) Foreign exchange differences (767) 174 (39) — (632) December 31, 2019 (362,006) (10,571) (36,264) — (408,841) Charge for the year (43,220) (1,153) (5,696) — (50,069) Disposal of NVISION GROUP (Note 11) — — 236 — 236 Transfer to assets held for sale 1,899 146 (7) — 2,038 Disposal 33,058 343 4,165 — 37,566 Other (5) (133) (34) — (172) Foreign exchange differences (1,968) (397) (496) — (2,861) December 31, 2020 (372,242) (11,765) (38,096) — (422,103) Charge for the year (44,387) (1,204) (7,548) — (53,139) Transfer to assets held for sale 1,247 1 15 — 1,263 Disposal 38,225 435 5,062 — 43,722 Other 277 (99) (4) — 174 Foreign exchange differences (1,016) (6) (112) — (1,134) December 31, 2021 (377,896) (12,638) (40,683) — (431,217) Net book value December 31, 2020 202,866 24,794 27,991 29,153 284,804 December 31, 2021 213,862 29,240 33,072 35,076 311,250 The amount of the compensation from third parties for items of property, plant and equipment that were accidentally damaged during construction in Moscow for the years ended December 31, 2021, 2020 and 2019 totaled RUB 2,403 million, RUB 1,510 million and RUB 2,034 million, respectively. This was included in the accompanying consolidated statements of profit or loss as component of other operating income. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL | |
GOODWILL | 21. GOODWILL Goodwill represents an excess of consideration transferred plus the fair value of any non-controlling interest (“NCI”) in the acquiree at the acquisition date over the fair values of the identifiable net assets of the acquired entity. Goodwill is not amortized, but is tested for impairment (Note 22). Presentation of goodwill by reportable segments for the year ended December 31, 2020 was changed to reflect changes in reportable segments disclosed in Note 6. The change in the net carrying amount of goodwill for the years ended December 31, 2021 and 2020 by reportable segments was as follows: Telecom Other Total Balance at January 1, 2020 Gross amount of goodwill 32,801 11,380 44,181 Accumulated impairment loss (1,466) (4,040) (5,506) 31,335 7,340 38,675 Acquisitions (Note 5) — 282 282 Reclassification (Note 6) (1,877) 1,877 — Impairment (Note 22) — (1,281) (1,281) Currency translation adjustment — 365 365 Balance at December 31, 2020 Gross amount of goodwill 30,924 13,904 44,828 Accumulated impairment loss (1) (1,466) (5,321) (6,787) 29,458 8,583 38,041 Acquisitions (Note 5) 4,337 46 4,383 Reclassification (Note 6) 253 (253) — Impairment (Note 22) — — — Currency translation adjustment — 395 395 Balance at December 31, 2021 Gross amount of goodwill 35,514 14,092 49,606 Accumulated impairment loss (1) (1,466) (5,321) (6,787) 34,048 8,771 42,819 (1) Accumulated impairment loss of Other segments consists of impairment loss of CGU “Armenia” (RUB 3,516 million), impairment loss of CGU “Oblachnyi retail” (RUB 524 million) and impairment loss of CGU “Entertainment” (RUB 1,281 million). |
IMPAIRMENT REVIEW
IMPAIRMENT REVIEW | 12 Months Ended |
Dec. 31, 2021 | |
IMPAIRMENT REVIEW | |
IMPAIRMENT REVIEW | 22. IMPAIRMENT REVIEW Goodwill – Investments in associates and joint ventures – Tangible and intangible assets excluding goodwill – In the process of identifying the impairment indicators management of the Group considers, among other factors, CGU market value and book value and changes in risk premiums in country of operations. When the carrying amount of the CGU exceeds its recoverable amount, assets allocated to this CGU must be impaired. For the purpose of the impairment test the recoverable amounts of the CGUs are considered to be equal to their value-in-use. While determining value-in-use, the estimated future cash flows are discounted to present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU. The discount rate applied to measure free cash flow is the weighted average cost of capital according to the finance structure established for each CGU. Estimation of future cash flows requires assumptions to be made in respect to uncertain factors, including management expectations in relation to OIBDA margin, timing and amount of capital expenditures, terminal growth rates and appropriate discount rates to reflect the risks involved. Therefore, OIBDA margin and capital expenditures used for value in use calculation are primarily derived from internal sources, based on past experience and extended to include management expectations. For the purposes of impairment testing OIBDA calculated as operating profit less depreciation and amortization measured on the basis consistent with IFRS consolidated financial statements. For the purposes of impairment testing the Group has assessed the effects of COVID-19 pandemic on Group's business and financial situation (as disclosed in Note 3) for impairment indicators. The Group has adjusted estimations of future cash flows to reflect its estimates of impact of the pandemic factors. The impairment charge recognized and discussed below is based on expected cash flows after applying these adjustments. Moscow Fixed Line In 2021 management of the Group has changed the composition of operating segments, by dividing operations of the Group’s subsidiary MGTS (previously constituted “Moscow Fixed Line” reportable segment) into two operating segments, as disclosed in Note 6. The described change in composition of operating segments led to separation of “Moscow fixed line” into two CGU – “MGTS commercial” and “MGTS service”. Entertainment Due to restrictive measures implemented by government in respect to mass events and gatherings ticket sales dropped significantly in 2020. Group management adjusted its expectations of Ticketland and Ponominalu operating performance to reflect significant reduction of business activities and time needed for recovery. The recoverable amount was in total equal to RUB 2,658 million as of June 30, 2020. As a result of impairment test the Group recognized impairment of goodwill related to Ticketland and Ponominalu in the aggregate amount of RUB 1,281 million for the year ended December 31, 2020. Kinopolis Kinopolis provides services of movie sites rental and movie production. The sites and related infrastructure for rent are presented in the statement of financial position as investment property. Overall slowdown of movie production and pandemic restrictions lead to decrease in demand for movie site rental. Operating results of Kinopolis dropped below expectations. As of December 31, 2020 the recoverable amount of Kinopolis’s assets was assessed as being lower than its carrying amount, and hence the impairment charge of RUB 807 million was recognized in respect to Kinopolis CGU. MTS Turkmenistan During the years ended December 31, 2021, 2020 and 2019 MTS Turkmenistan sold a number of long-lived assets impaired in prior periods, hence the reversal of the impairment in the amount of gain from disposal of RUB 10 million, RUB 66 million and RUB 148 million, respectively, was recognized in the accompanying consolidated statements of profit or loss. Impairment losses and reversal of the impairment charges recognized during the years ended December 31, 2021, 2020 and 2019 are attributable to operating segments, reported as a part of the “Other” category (Note 6). The total amount of impairment loss and reversal of impairment charges for the year ended December 31, 2021, 2020 and 2019 was allocated to the long-lived assets carrying amounts as follows: 2021 2020 2019 MTS MTS MTS Turkmenistan Entertainment Kinopolis Turkmenistan Turkmenistan Goodwill 1,281 — — — Property, plant and equipment (10) — (66) (114) Investment property — 807 — — Other intangible assets — — — (34) Total (10) 1,281 807 (66) (148) Key assumptions used for value in use calculation: The table below presents OIBDA margin applied for value in use calculation of related CGUs: December 31, sick CGU 2021 2020 Russia Convergent 41.3%-46.9% 43.2%-44.3% Armenia 53.5%-60.3% 51.8%-54.0% MGTS Commercial 59.9%-63.0% Not available MGTS Service 42.5%-51.8% Not available Nvision Czech Republic 4.3%-5.0% 3.5%-5.2% Entertainment 4.8%-12% 8.8%-32% Cloud 37.7%-67.3% 41.3%-69.0% The table below presents capital expenditure as a percentage of revenue applied for value-in-use calculations of related CGUs: December 31, CGU 2021 2020 Russia Convergent 18 % 20.9 % Armenia 22 % 22.2 % MGTS Commercial 16 % Not available MGTS Service 16 % Not available Nvision Czech Republic 1 % 1.2 % Entertainment 3 % 0.0 % Cloud 17 % 15.4 % The terminal growth rate into perpetuity has been determined based on the nominal gross domestic product rates for the country of operation, adjusted for specific characteristic of the CGUs. The table below presents terminal growth rates applied for value-in-use calculations of related CGUs: December 31, CGU 2021 2020 Russia Convergent 1 % 1 % Armenia nil nil MGTS Commercial 1 % Not available MGTS Service 1 % Not available Nvision Czech Republic 2 % 2 % Entertainment 1.5 % 1.5 % Cloud 1 % 1 % The table below presents pre-tax rates for the discounting of cash flows in functional currencies of related CGUs: December 31, CGU 2021 2020 Russia Convergent 10.1 % 11.4 % Armenia 11.2 % 13.3 % MGTS Commercial 12.7 % Not available MGTS Service 9.9 % Not available Nvision Czech Republic 6.0 % 6.1 % Entertainment 13.1 % 13.6 % Cloud 13.6 % 13.2 % |
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
OTHER INTANGIBLE ASSETS | |
OTHER INTANGIBLE ASSETS | 23. OTHER INTANGIBLE ASSETS Other intangible assets primarily consist of billing, telecommunication, accounting and office software as well as numbering capacity, customer base and licenses. These assets are assets with finite useful lives. They are initially recognized at cost and amortized on a straight-line basis over their estimated useful lives. Balances of historical cost, accumulated amortization, net book value as of December 31, 2021 and 2020 and movements of other intangible assets for the year ended December 31, 2021, 2020 and 2019 were as follows: Right to use Billing and Cost to radio other Numbering obtain Licenses frequencies software Client base capacity contracts Other Total Useful life, years 1 to 20 1 to 15 1 to 25 4 to 31 2 to 15 2 to 5 1 to 10 Cost January 1, 2019 39,627 6,648 138,564 8,790 2,868 23,360 3,606 223,463 Additions 1,106 (38) 27,921 — (2) 10,290 366 39,643 Arising on business combinations (Note 5) — — 6 (37) 2 — 61 32 Disposal of VF Ukraine (Note 11) (19,149) — (15,770) — (136) (1,826) (692) (37,573) Impairment — (26) — — — — — (26) Disposal (84) (865) (11,564) (2,823) (64) (18,281) (208) (33,889) Other 4 (1) 93 — — — (81) 15 Foreign exchange differences 201 (29) 718 — 9 92 44 1,035 December 31, 2019 21,705 5,689 139,968 5,930 2,677 13,635 3,096 192,700 Additions 1,466 (11) 35,277 — 15 10,390 1,941 49,078 Arising on business combinations (Note 5) — — — — — — — — Disposal of NVISION GROUP (Note 11) — — (311) — — — — (311) Reclassification into assets for sale — — (184) — — — — (184) Impairment — 43 (167) — — — (2) (126) Disposal (108) (172) (28,035) (73) (24) (9,758) (1,033) (39,203) Other 25 30 (83) — — — (1) (29) Foreign exchange differences 913 — 386 — — — 4 1,303 December 31, 2020 24,001 5,579 146,851 5,857 2,668 14,267 4,005 203,228 Additions 1,350 — 34,421 — 75 3,653 5,494 44,993 Arising on business combinations (Note 5) — — 571 1,147 174 — 576 2,468 Reclassification into assets for sale — — (17) — — — — (17) Impairment (1) 21 — — — — — 20 Disposal (39) (233) (14,783) (680) (251) (3,287) (1,064) (20,337) Other — 1 (97) — — — (9) (105) Foreign exchange differences 992 — 381 — — — (1) 1,372 December 31, 2021 26,303 5,368 167,327 6,324 2,666 14,633 9,001 231,622 Accumulated amortisation and impairment January 1, 2019 (16,113) (4,586) (80,785) (5,258) (2,754) (16,343) (1,662) (127,501) Charge for the year (2,911) (372) (24,394) (603) (41) (6,887) (374) (35,582) Disposal of VF Ukraine (Note 11) 5,155 — 12,657 — 129 1,208 301 19,450 Effect on assets impairment — — — — — — — — Disposal 25 831 11,065 2,813 64 18,281 196 33,275 Other (2) — (24) — — (2,573) 17 (2,582) Foreign exchange differences 664 29 (615) — (9) (80) (20) (31) December 31, 2019 (13,182) (4,098) (82,096) (3,048) (2,611) (6,394) (1,542) (112,971) Charge for the year (1,266) (367) (25,146) (431) (27) (9,964) (345) (37,546) Disposal of NVISION GROUP (Note 11) — — 77 — — — — 77 Disposal 71 160 27,953 72 24 9,758 402 38,440 Other (10) (31) 81 — — — 2 42 Foreign exchange differences (894) — (275) — — — 2 (1,167) December 31, 2020 (15,281) (4,336) (79,406) (3,407) (2,614) (6,600) (1,481) (113,125) Charge for the year (1,443) (349) (29,737) (631) (35) (3,424) (1,867) (37,486) Disposal 3 228 14,716 679 249 3,288 920 20,083 Other — — 204 — — — 16 220 Foreign exchange differences (971) — (211) — — — — (1,182) December 31, 2021 (17,692) (4,457) (94,434) (3,359) (2,400) (6,736) (2,412) (131,490) Net book value December 31, 2020 8,720 1,243 67,445 2,450 54 7,667 2,524 90,103 December 31, 2021 8,611 911 72,893 2,965 266 7,897 6,589 100,132 The Group was granted with GSM licenses by the Russian Ministry of Information Technologies and Communications to provide telecommunication services. In addition to the licenses received directly from the Russian Ministry of Information Technologies and Communications, the Group acquired access to telecommunication licenses through business combinations. In foreign subsidiaries, the licenses are granted by the local communication authorities. Operating licenses contain conditions specified by legislation which generally include the required date of services provision, territorial coverage and expiration date. Management believes that the Group is in compliance with all material terms of its licenses. The Group’s operating licenses do not provide for automatic renewal. All licenses covering the territories of the Russian Federation expired as of December 31, 2021 were renewed. The cost to renew the licenses was not significant. Weighted-average period until the next renewal of licenses in the Russian Federation is two The license for the provision of telecommunication services in Armenia is valid until 2034. Contractual obligations to purchase intangible assets are disclosed in the Note 34. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS | |
BORROWINGS | 24. BORROWINGS Group’s borrowings represent interest bearing bank loans and bonds issued in the capital markets. Borrowings are initially recorded at fair value plus transaction costs that are directly attributable to the issue of the financial liability and subsequently measured at amortized cost, using the effective interest rate method. The Group’s borrowings comprise the following: December 31, 2021 2020 Notes 191,996 208,155 Bank and other loans 270,143 221,113 Total borrowings 462,139 429,268 Less: current portion (111,839) (34,125) Total borrowings, non-current 350,300 395,143 Notes Interest rate (actual at December 31, December 31, December 31, Currency 2021) 2021 2020 MTS International Notes due 2023 USD 5.00% 33,291 33,091 MTS PJSC Notes due 2022 RUB 7.70% 14,991 14,980 MTS PJSC Notes due 2025 RUB 8.00% 14,990 14,987 MTS PJSC Notes due 2023 RUB 6.85% 14,982 14,971 MTS PJSC Notes due 2027 RUB 6.60% 14,975 14,971 MTS PJSC Notes due 2022 RUB 9.00% 10,000 9,998 MTS PJSC Notes due 2026 RUB 7.90% 9,999 9,998 MTS PJSC Notes due 2022 RUB 5.50% 9,995 9,984 MTS PJSC Notes due 2022 RUB 6.45% 9,994 9,988 MTS PJSC Notes due 2025 RUB 7.25% 9,993 9,990 MTS PJSC Notes due 2024 RUB 8.70% 9,991 9,986 MTS PJSC Notes due 2023 RUB 6.50% 9,923 9,860 MTS PJSC Notes due 2024 RUB 8.60% 7,491 7,488 MTS PJSC Notes due 2027 RUB 6.60% 6,983 6,980 MTS PJSC Notes due 2022 RUB 8.40% 4,997 4,994 MTS PJSC Notes due 2026 RUB 6.60% 4,992 4,990 MTS PJSC Notes due 2024 RUB 6.50% 4,319 — MTS PJSC Notes due 2031 RUB 7.50% 78 891 MTS PJSC Notes due 2021 RUB 8.85% — 9,999 MTS PJSC Notes due 2021 RUB 7.10% — 9,997 Other 12 12 Total notes 191,996 208,155 Less: current portion (49,923) (20,813) Total notes, non-current 142,073 187,342 The Group has an unconditional obligation to repurchase certain MTS PJSC Notes at par value if claimed by the noteholders subsequent to the announcement of the sequential coupon. The date of the announcement for the particular note issue is as follows: MTS PJSC Notes due 2031 February 2026 The Group discloses these notes as maturing in 2026 (MTS PJSC Notes due 2031) in the aggregated maturities schedule as the noteholders have the unilateral right to demand repurchase of the notes at par value upon announcement of new coupons. Bank and other loans Interest rate (actual at December 31, December 31, December 31, Maturity 2021) 2021 2020 RUB-denominated: Sberbank 2022-2024 5.99%-CBR 1 135,000 85,001 VTB 2024-2026 CBR 1 1 129,307 129,091 Related party loans 2022-2024 8.70% - CBR 1 1,968 1,803 Subsidized loans 2025 0.1 CBR 1 1,769 1,845 Other 2,099 3,373 Total bank and other loans 270,143 221,113 Less: current portion (61,916) (13,312) Total bank and other loans, non-current 208,227 207,801 1 CBR – Central Bank of Russia Subsidized loans Compliance with covenants The noteholders of MTS International Notes due 2023 have the right to require the Group to redeem the notes at 101% of their principal amount and related interest, if the Group experiences a change in control. If the Group fails to meet these covenants, after certain notice and cure periods, the debtholders are entitled to demand accelerated principal repayment. The Group was in compliance with all existing notes and bank loans covenants as of December 31, 2021. Available credit facilities Currency Maturity Interest rate Available till Available amount Sberbank RUB 2025 To be agreed August 2025 130,000 NDB USD 2028 LIBOR+ 1.75% July 2022 22,288 Sberbank RUB 2024 To be agreed August 2024 20,000 Sberbank RUB 2024 To be agreed May 2024 15,000 Rosselhozbank RUB/USD/EUR 2022 To be agreed November 2022 7,000 VTB RUB 2028 To be agreed August 2028 5,000 SPB RUB 2024 To be agreed January 2024 3,000 VEB RUB 2025 0.1 CBR key rate 1 November 2023 2,490 ZTV RUB 2022 CBR key rate 1 July 2022 1,060 VEB RUB 2025 0.1 CBR key rate 1 November 2023 970 Cisco RUB 2023 To be agreed July 2022 515 Total 207,323 1 CBR – Central Bank of Russia In addition, the Group has a credit facility made available by Citibank at an interest rate of MosPrime + 1.50%, with the available amount set up on request and to be repaid within 182 days. The following table presents the aggregated scheduled maturities of principal and interests on notes and bank loans (gross of debt issuance costs) outstanding for the five years ending December 31, 2026 and thereafter: December 31, 2021 Bank loans Notes and other debt Payments due in the year ending December 31, 2022 62,772 83,862 2023 66,809 58,523 2024 27,346 72,799 2025 28,529 93,385 2026 17,448 15,136 Thereafter 22,477 — Contractual undiscounted cash flows 225,381 323,705 Less: unamortized debt issuance costs (184) — Less: interest (33,201) (52,628) Less: debt modification — (693) Less: subsidized interest rate effect — (241) Total debt 191,996 270,143 |
RIGHT-OF-USE ASSETS AND LEASE O
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2021 | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | 25. RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS The Group’s lease contracts largely relate to leases of cellular sites (i.e. land, space in cell towers or rooftop surface areas), network infrastructure, and retail stores as well as buildings used for administrative or technical purposes. The Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease agreements (including sub-lease and lease of intangible assets), which conveys the right to control the use of identified assets for a period of time in exchange for consideration, except for short-term leases (with a lease term of 12 months or less). For these leases, the Group recognizes the lease payments as operating expenses over the term of the lease. When identifying the lease, the Group uses practical expedient of IFRS 16 permitting the lessee not to separate the non-lease components of the contract and, instead, to account for any lease and associated non-lease components as a single arrangements. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the incremental borrowing rate of the Group. The incremental borrowing rate of the Group is determined based on the credit spreads of the Group debt instruments in relation to the zero-coupon yield curve for government securities. The lease payments include fixed payments, variable payments that depend on index or rate, amounts expected to be paid under residual value guarantee, the exercise price under a purchase option the Group is reasonably certain to exercise as well as early termination fees unless the Group is reasonably certain not to terminate earlier. Variable payments that depend on external factors (such as sale volume of a particular retail store) are expensed as incurred. Lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. A corresponding adjustment is made to the carrying amount of the right-of-use assets, or is recorded in profit or loss if the carrying amount of right-of-use asset had been reduced to zero. Right-of-use assets are initially measured at cost, which is the initial amount of lease liability adjusted for any lease payments made at or before the commencement date, plus any direct costs incurred and an estimate of costs to dismantle, remove or restore the underlying asset less any lease incentives received. Right-of-use assets are subsequently amortized on a straight-line basis over the expected lease term. The lease term corresponds to the non-cancellable period of each contract except in cases where the Group is reasonably certain of exercising renewal or termination options. When assessing the lease term, the Group considers all facts and circumstances that create an economic incentive for the Group to exercise the option to extend the lease, such as useful life of the asset located on the leased site, sites replacement statistics, sequence of technology change, profitability of our retail stores as well as costs to terminate or enter into lease contracts. The table below summarises the estimated terms, over which the right-of-use assets are amortized: Sites for placement of network equipment and base stations inside the buildings 10 years Sites for placement of network equipment and base stations on land 20 years Retail stores Up to 8 years Administrative offices, warehouses, parking garages not less than 3 years Vehicles 4 – 5 years The following table presents a summary of net book value of right-of-use assets: December 31, 2021 2020 Sites for placement of network and base station equipment 91,566 93,948 Land and buildings 40,572 36,468 Vehicles and other 205 87 Right-of-use assets, net 132,343 130,503 The following table presents a summary of depreciation charge of the right-of-use assets: 2021 2020 2019 Sites for network and base station equipment 11,448 6,903 6,900 Land and buildings 8,328 11,903 11,968 Vehicles and other 103 43 404 Exclusive rights for trademarks — — 693 Depreciation charge, total 19,879 18,849 19,965 Depreciation of the right-of-use assets for the years ended December 31, 2021, 2020 and 2019 of RUB nill Additions to the assets leased during the years ended December 31, 2021, 2020 and 2019 amounted to RUB 17,510, RUB 13,102 and RUB 20,436 million. Interest expense accrued on lease obligations for the years ended December 31, 2021, 2020 and 2019 in the amount of RUB 11,820, RUB 12,277 and RUB 13,416 million, respectively, were included in finance costs, whereas RUB nill For the years ended December 31, 2021, 2020 and 2019, expenses recognized in respect of variable lease payments not included on the measurement of lease liabilities and short-term leases amounted to: 2021 2020 2019 Variable lease payments 10,623 9,542 8,522 Short-term leases 310 195 203 Total 10,933 9,737 8,725 The following table presents future minimum lease payments under lease arrangements together with the present value of the net minimum lease payments as of December 31, 2021 and 2020: December 31, 2021 2020 Minimum lease payments, including: Current portion (less than 1 year) 29,758 27,094 More than 1 to 5 years 101,965 98,737 Over 5 years 91,031 93,520 Total minimum lease payments 222,754 219,351 Less amount representing interest (68,245) (68,537) Present value of net minimum lease payments, including: Current portion (less than 1 year) 18,709 16,177 More than 1 to 5 years 70,818 66,784 Over 5 years 64,982 67,853 Total present value of net minimum lease payments 154,509 150,814 Less current portion of lease obligations (18,709) (16,177) Non-current portion of lease obligations 135,800 134,637 Total cash outflows for leases for the years ended December 31, 2021, 2020 and 2019 totaled to RUB 38,996, RUB 36,963 and RUB 38,545 million, of which RUB 11,548, RUB 12,173 and RUB 14,666 million was included in interest paid. A minor part of the Group’s lease contracts for retail stores include variable payments that depend on sales volume of the respective store. The Group’s lease contracts include typical restrictions and covenants common for local business practice, such as the responsibility of the Group for regular maintenance and repair of the lease assets and their insurance, redesign and conduction of permanent improvements only with the consent of the lessor, and use of the leased asset in accordance with current legislation. For the year ended December 31, 2020 the Group recognized gain related to termination of lease agreements and rent holidays for retail outlets in the amount of RUB 464 and RUB 286 million, respectively. |
RECONCILIATION OF LIABILITIES A
RECONCILIATION OF LIABILITIES ARISING FROM FINANCIAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2021 | |
RECONCILIATION OF LIABILITIES ARISING FROM FINANCIAL ACTIVITIES | |
RECONCILIATION OF LIABILITIES ARISING FROM FINANCIAL ACTIVITIES | 26. RECONCILIATION OF LIABILITIES ARISING FROM FINANCIAL ACTIVITIES Foreign Other Change in December 31, Financing Operating Acquisitions/ exchange comprehensive Change retained Other December 31, 2020 cash flows cash flows Disposals movement income in fair value earnings changes (1) 2021 Notes (Note 24) 208,155 (16,504) — — 187 — — — 158 191,996 Bank and other loans (Note 24) 221,113 48,718 — 1,735 — (10) — — (1,413) 270,143 Lease obligation (Note 0) 150,814 (16,516) (11,548) 146 45 72 — — 31,496 154,509 Payables related to repurchase of common stock (Note 32) — (21,483) — — — — — — 21,483 — Dividends payable (Note 32) 109 (61,955) — — — — — 61,967 (53) 68 Payables related to transactions under common control — (3,474) — — — — — — 3,474 — Liability under put option agreement 62 — — — — — (62) — — — Derivative instruments (3,591) — — — (125) — — — 426 (3,290) Total liabilities arising from financial activities 576,662 (71,214) (11,548) 1,881 107 62 (62) 61,967 55,571 613,426 (1) Including accrual of liabilities related to repurchase of common stock, additions under lease agreements, dividends related to non-controlling interest, depreciation of debt issuance cost, modification gain and other changes. Foreign Other Change in December 31, Financing Operating Acquisitions/ exchange comprehensive Change retained Other December 31, 2019 cash flows cash flows Disposals movement income in fair value earnings changes (1) 2020 Notes (Note 24) 183,935 18,590 — — 7,674 — — — (2,044) 208,155 Bank and other loans (Note 24) 159,384 60,055 — 26 — — — — 1,648 221,113 Lease obligation (Note 0) 155,308 (15,054) (12,173) (145) 1,405 150 — — 21,323 150,814 Payables related to repurchase of common stock (Note 32) — (16,028) — — — — — — 16,028 — Dividends payable (Note 32) 23,080 (74,923) — — — — — 52,012 (60) 109 Payables related to transactions under common control 22 — — — — — — — (22) — Liability under put option agreement 73 — — — — — (53) — 42 62 Derivative instruments 955 — (449) — (3,582) — — — (515) (3,591) Total liabilities arising from financial activities 522,757 (27,360) (12,622) (119) 5,497 150 (53) 52,012 36,400 576,662 (1) Including accrual of liabilities related to repurchase of common stock, additions under lease agreements, dividends related to non-controlling interest, depreciation of debt issuance cost, modification gain and other changes. |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2021 | |
PROVISIONS | |
PROVISIONS | 27. PROVISIONS Provisions Provision for decommissioning and restoration Employee bonuses and share-based settlement programs The following table summarizes the movement in provisions for the years ended December 31, 2021, 2020 and 2019: Tax Provision provisions for Employee Litigation other than decommissioning bonuses SEC and Other for income and and other provision provisions Total tax restoration rewards (Note 34) (Note 34) provisions January 1, 2019 (252) (3,109) (10,378) (59,050) (1,513) (74,302) Arising during the year (410) (2,341) (16,896) — (208) (19,855) Utilised 19 19 16,055 55,607 527 72,227 Discount rate adjustment and imputed interest (change in estimates) — 42 (12) — — 30 Unused amounts reversed 34 — 523 — 155 712 Arising due to acquisitions of subsidiaries — — (9) — — (9) Disposal of VF Ukraine 50 760 672 — 126 1,608 Other (4) (159) 2 3,443 20 3,302 December 31, 2019 (563) (4,788) (10,043) — (893) (16,287) Current portion (563) (126) (9,944) — (893) (11,526) Non-current portion — (4,662) (99) — — (4,761) January 1, 2020 (563) (4,788) (10,043) — (893) (16,287) Arising during the year (211) (914) (14,770) — (3,860) (19,755) Utilised 29 54 16,489 — 137 16,709 Discount rate adjustment and imputed interest (change in estimates) 1 (138) 67 — — (70) Unused amounts reversed 8 513 (125) — 114 510 Arising due to acquisitions of subsidiaries — — — — — — Disposal of Nvision Group 115 — 245 — 9 369 Other — — (62) — (2) (64) December 31, 2020 (621) (5,273) (8,199) — (4,495) (18,588) Current portion (621) (229) (8,115) — (4,495) (13,460) Non-current portion — (5,044) (84) — — (5,128) January 1, 2021 (621) (5,273) (8,199) — (4,495) (18,588) Arising during the year (74) (2,329) (17,860) — (1,862) (22,125) Utilised 161 31 13,258 — 1,736 15,186 Discount rate adjustment and imputed interest (change in estimates) — (145) 4 — — (141) Unused amounts reversed 488 226 580 — (2) 1,292 Arising due to acquisitions of subsidiaries (207) — (159) — (3) (369) Other (1) — (18) — (3) (22) December 31, 2021 (254) (7,490) (12,394) — (4,629) (24,767) Current portion (254) (284) (12,312) — (4,629) (17,479) Non-current portion — (7,206) (82) — — (7,288) |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 28. FAIR VALUE OF FINANCIAL INSTRUMENTS A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets include, in particular, cash and cash equivalents, trade and other receivables, bank loans to customers, investments (mainly deposits with original maturity of more than three months, originated loans other than bank loans to customers as well as debt securities) and derivative financial assets. Financial liabilities generally substantiate claims for repayment in cash or another financial asset. In particular, this includes bonds, trade and other payables, bank loans, lease obligations and derivative financial liabilities. Financial instruments are recognized as soon as the Group becomes a party to the contractual provision of the instrument. Financial assets and financial liabilities are recognized initially at fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability, except for a financial asset or liability accounted for at fair value through profit or loss, in which case transaction costs are expensed. Subsequently they are measured either at amortized cost or fair value depending on the classification of those assets and liabilities. Financial assets can be classified as 1) financial assets at amortized cost; 2) financial assets at fair value through other comprehensive income; 3) financial assets at fair value through profit or loss. If the financial assets are held for collecting contractual cash flows in the form of principal and interest on the specified dates, it is classified as carried at amortized cost. If the financial assets are held not only for collecting contractual cash flows in the form of principal and interest on the specified dates, but also for potential sale, they are classified as measured at fair value through other comprehensive income. All other financial assets are classified as measured at fair value through profit or loss. Financial liabilities can be classified as measured at fair value or at amortized costs. The Group measures its derivative instruments, contingent consideration recognized in business combination as well as liability under put option agreement at fair value. All other financial liabilities of the Group are measured at amortized cost. Derivative instruments activities Gains and losses from changes in the fair value of derivative instruments are recorded immediately in profit or loss. Assets and liabilities related to multiple derivative contracts with one counterparty are not offset by the Group. Liability under put option agreement Netting Fair value of financial instruments Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities; Level 3 – No observable pricing inputs in the market. Financial assets and financial liabilities are classified in the three-tier hierarchy based on the lowest level of input that is significant to the fair value measurements. The Group’s assessment of the significance of a particular input to the fair value measurements requires judgment which may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. 1. Financial assets of the Group December 31, 2021 2020 Cash and cash equivalents (Note 14) 40,590 85,405 Trade and other receivables (Note 18) 39,795 35,031 Accounts receivable, related parties (Note 31) 7,287 14,189 Other financial assets: Financial assets at amortized cost: Deposits and loans issued 208,018 118,594 Notes 9,158 9,583 Other 2,138 2,196 Total financial assets at amortized cost 219,314 130,373 Financial assets at fair value through profit or loss: Securities held by MTS Bank and Sistema Capital 25,687 21,824 Mutual funds 10,719 10,699 Assets in Sistema Capital trust management 10,374 10,313 Cross-currency swaps not designated as hedges 4,627 4,508 Contingent consideration (Note 11) 1,867 2,631 Investments in equity 1,228 — Embedded derivatives in a lease agreement 434 562 Assets under option agreements 112 228 Currency forwards, swaps and options not designated as hedges 110 2 Total financial assets at fair value through profit or loss 55,158 50,767 Total other financial assets 274,472 181,140 Total financial assets 362,144 315,765 Less current portion (224,862) (227,338) Total financial assets, non-current 137,282 88,427 2. Financial liabilities of the Group December 31, 2021 2020 Trade and other payables 72,078 56,017 Accounts payable, related parties (Note 31) 4,107 3,146 Other financial liabilities: Financial liabilities at amortized cost: Bank and other loans (Note 24) 270,143 221,113 Notes (Note 24) 191,996 208,155 Bank deposits and liabilities (Note 30) 221,368 167,677 Lease obligations (Note 0) 154,509 150,814 Total financial liabilities at amortized cost 838,016 747,759 Financial liabilities at fair value through profit or loss: Contingent consideration and other liabilities 383 1,068 Liabilities under option agreements — 55 Total financial liabilities at fair value through profit or loss 383 1,123 Total other financial liabilities 838,399 748,882 Total financial liabilities 914,584 808,045 Less current portion (413,990) (276,368) Total financial liabilities, non-current 500,594 531,677 The fair value measurement of the Group’s derivative instruments and investments in Sistema Capital trust management is based on the observable yield curves for similar instruments and represents the estimated amount the Group would receive or pay to terminate these agreements at the reporting date, taking into account current interest rates, foreign exchange spot and forward rates. The investment in mutual investment funds is measured at fair value of the Group’s share in net assets of funds. The table below presents the fair value of financial instruments carried at fair value within the statement of financial position: December 31, Level of inputs 2021 2020 Assets Securities held by MTS Bank and Sistema Capital Level 1 25,687 21,824 Derivative instruments Level 2 4,736 4,510 Cross-currency swaps not designated as hedges 4,627 4,508 Currency forwards, swaps and options 110 2 Mutual investment funds, managed by Sistema Capital (Note 15) Level 2 10,719 10,699 Assets in Sistema Capital trust management (Note 15) Level 2 10,374 10,313 Embedded derivatives in a lease agreement Level 2 434 562 Contingent consideration Level 3 1,867 2,631 Investments in equity Level 3 1,228 — Assets under option agreements Level 3 112 228 Liabilities Contingent consideration Level 3 (188) (944) Liabilities under option agreements Level 3 — (55) Net realized gains and losses of Level 3 assets and liabilities resulting from fair value measurements were included in net foreign exchange (gain) / loss and change in fair value of financial instruments and profit from discontinued operations in the consolidated statements of profit or loss in the following amounts: For the years ended December 31, 2021 2020 2019 Net realized gains of Level 3 assets 2,263 846 2,013 Net realized losses of Level 3 liabilities (420) (39) (1,813) 1,843 807 200 Net unrealized gains and losses of Level 3 assets and liabilities resulting from fair value measurements were included in net foreign exchange (gain) / loss and change in fair value of financial instruments in the consolidated statements of profit or loss in the following amounts: For the years ended December 31, 2021 2020 2019 Net unrealized gains of Level 3 assets 385 — — Net unrealized gains/(losses) of Level 3 liabilities 391 — — 776 — — Financial instruments at amortised cost The carrying value of the Group’s financial instruments accounted for at amortized cost approximates their fair value due to their short-term nature and market interest rates, except for borrowings, gross of debt issuance cost, as disclosed in the table below: December 31, 2021 December 31, 2020 Level of Carrying Carrying inputs Fair value value Fair value value Notes Level 1 (173,903) (174,984) (200,198) (191,142) Unquoted notes Level 3 (17,012) (17,012) (17,012) (17,012) Bank and other loans (Note 24) Level 3 (267,405) (270,143) (221,113) (221,113) (458,320) (462,139) (438,323) (429,267) The carrying value of the Group’s bank and other loans approximates their fair value as of December 31, 2021 and 2020. While management has used available market information in estimating the fair value of its financial instruments, the market information may not be fully reflective of the value that could be realized in the current circumstances. There were no transfers between levels of inputs within the hierarchy during the years ended December 31, 2021, 2020 and 2019. There were no transfers between the accounting categories of financial instruments during the years ended December 31, 2021 and 2019. During the year ended December 31, 2019 |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
FINANCIAL RISK MANAGEMENT | |
FINANCIAL RISK MANAGEMENT | 29 As part of its business the Group is exposed to several types of financial risks: capital risk (mainly by MTS Bank), market risks, credit (or counterparty) risks, and liquidity risks. Risks mitigating activities are mainly performed at the Group headquarters by the corporate finance personnel and are subject to the approval of the Group’s supervisory bodies – the Board of Directors and its Budget Committee. Capital risk MTS Bank, a subsidiary of the Group, is subject to regulations of the Central Bank of Russia which require that banks comply with minimum capital adequacy ratios calculated on the basis of statutory standalone financial statements as follows: - - - MTS Bank meets the requirements established by the CBR. As of December 31, 2021 and 2020, the capital adequacy ratio of MTS Bank in accordance with CBR requirements were: - - - Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market prices. The Group is primarily exposed to the following types of market risks: interest rate risk and currency exchange rates fluctuations. Financial instruments affected by market risk include loans and borrowings, deposits, accounts payable and accounts receivables denominated in foreign currencies and derivative financial instruments. The sensitivity analyses in the following sections relate to the financial position as of December 31, 2021 and 2020. Interest rate risks Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. Fixed interest rate risk A part of the Group’s notes denominated US Dollars bear fixed interest rates. To eliminate the exposure of changes in the value of debt obligations, the Group enters into fixed-to-variable cross-currency and interest rate swap agreements. In aggregate, the Group entered into fixed-to-variable cross-currency and interest rate swap agreements designated to manage the exposure of changes in value of the debt related to 8.3% and 7.4% of the Group’s notes and bank loans with fixed rates outstanding as of December 31, 2021 and 2020. The notional amounts of interest rate derivative instruments outstanding amounted to RUB 22,288 million and RUB 22,163 million as of December 31, 2021 and 2020, respectively. Sensitivity analysis A reasonably possible increase of 100 basis points in short term interest rates would have resulted in RUB 1,523 million, RUB 1,166 million and RUB 271 million future increases of interest expense for the years ended December 31, 2021, 2020 and 2019, respectively. The same decrease in short term interest rates would have resulted in RUB 1,523 million, RUB 1,166 million and RUB 271 million future decreases of interest expenses for the years ended December 31, 2021, 2020 and 2019, respectively. There will be no material impact on equity. The interest rate sensitivity analysis was performed based on a constant level of fixed and floating rate debt. Foreign currency risks Foreign currency risk is the risk that the fair value of financial instruments will fluctuate because of changes in foreign exchange rates. The Group’s exposure to these changes in foreign exchange rates relates primarily to the Group’s financing activities. The Group manages its currency risk by operation derivatives and by using money market instruments. The Group has entered into several cross-currency swap agreements. These contracts are mainly designated to manage the exposure of changes in currency exchange rate. The contracts assumed periodic exchange of principal and interest payments from RUB-denominated amounts to USD-denominated amounts at a specified exchange rate. The exchange rate was determined by the market spot rate upon issuance. Cross-currency interest rate swap contracts mature in 2023-2024. In aggregate the Group entered into cross-currency interest rate swap agreements designated to manage the exposure of changes in currency exchange rate for 66.8% and 66.7% of its USD-denominated notes and bank loans outstanding as of December 31, 2021 and 2020 respectively. The notional amounts of currency derivative instruments outstanding amounted to RUB 22,288 million and RUB 22,163 million as of December 31, 2021 and 2020 respectively. The Group has entered into currency forward and swaps agreements to minimize the foreign currency risk. The contracts assumed the purchase or sale of the agreed amount of currency at a specified exchange rate and on a specific date. The rate was determined by the market spot rate upon issuance. As the result of currency forward and swap agreements, unfulfilled as of December 31, 2021, 2020 and 2019, the Group recognized RUB 83 million loss, RUB 1,136 million gain and RUB 701 million gain the consolidated statement of profit and loss for the years ended December 31, 2021, 2020 and 2019, respectively. The notional amounts of currency forward and swap instruments, outstanding as of December 31, 2021 and 2020, amounted to RUB 9,993 million and RUB 7,911 million, respectively. The following tables demonstrate the sensitivity of profit before tax to a reasonably possible change in USD and EUR exchange rates, with all other variables held constant. USD - effect on EUR - effect on Change profit before tax Change profit before tax in rate, USD RUB mln in rate, EUR RUB mln 2021 +15% (856) +15% (1,012) -15% 856 -15% 1,012 2020 +10% 786 +10% (682) -10% (1,291) -10% 682 2019 +5% 2,516 +1% 120 -5% (2,516) -1% (120) The movement in the pre-tax effect is a result of a change in monetary assets and liabilities denominated in US dollars and Euro, where the functional currency of the entity is a currency other than US dollars and Euro. There will be no material impact on equity. The Group’s exposure to foreign currency changes for all other currencies is not material. MTS Bank credit limits committee determines stop-loss limits related to security portfolio and to foreign exchange transactions, as well as limits for net foreign exchange position. The limits for net foreign exchange position conform fully to CBR requirements. Monitoring of adherence to the limits restricting the amount of MTS Bank’s market risk is performed day-to-day. Liquidity risk Liquidity risk is the risk of a shortage of funds. The Group’s policy is to borrow centrally using a mixture of long-term and short-term borrowing facilities. These borrowings, together with cash generated from operations are utilized to meet anticipated funding requirements. The Group assessed the concentration of risk with respect to refinancing its debt and determined it to be of low level. The Group manages liquidity risk on long-term borrowings by maintaining a varied maturity profile and a required net debt position, therefore minimizing the refinancing risk. Long-term borrowings mature between one Securities held by MTS Bank which are accounted for at fair value through profit and loss and investments at amortized cost are included in liquidity analysis on the basis of remaining maturity. Most of these securities are included in the CBR Lombard list and if required may be used to obtain Repurchase Agreement (REPO) financing from the CBR. MTS Bank’s demand for medium-term liquidity is fully satisfied by the availability of interbank loans and customer deposits (obtaining new and prolongating existing deposits), secured loans and conclusion of REPO agreements. Analysis of the liquidity and interest rate risks of MTS Bank is presented in Note 0. As at December 31, 2021, the Group’s consolidated current liabilities exceeded current assets by RUB 210,120 million. The management believes the Group has sufficient existing and continuing access to liquidity through both operating cash flows and the availability of committed credit facilities of RUB 207,323 million (Note 24). Credit risk Credit risk is the risk that the counterparty will not meet its obligations arising from entering into financial instrument, leading to a financial loss. In accordance with IFRS 9 the Group records an allowance for expected credit losses (ECL) for all financial assets not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due under the contract and all cash flows that the Group expects to receive. The shortfall is discounted at an approximation to the asset’s original effective interest rate. The expected credit-loss approach uses three stages for allocating impairment losses: Stage 1: expected credit losses within the next twelve months Stage 1 includes all contracts with no significant increase in credit risk since initial recognition and usually contains new contracts that are fewer than 31 days past due date. The portion of the lifetime expected credit losses resulting from default events possible within the next 12 months is recognized. Stage 2: expected lifetime credit losses – not credit impaired If a financial asset has a significant increase in credit risk since initial recognition but is not yet credit impaired, it is moved to stage 2 and measured at lifetime expected credit loss. This is defined as the expected credit loss that results from all possible default events over the expected life of the financial instrument. In all cases, the Group considers that there has been a significant increase in credit risk when the contractual payment is more than 30 days past due. Stage 3: expected lifetime credit losses – credit impaired If a financial asset is defined as credit impaired or in default, it is transferred to stage 3 and measured at lifetime expected credit loss. Objective evidence for a credit-impaired financial asset includes 91 days past due date as well as other information indicating significant financial difficulties of the borrower. The Group considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realizing security (if any is held). The determination of whether a financial asset has experienced a significant increase in credit risk is based on an assessment of the probability of default, which is made at least quarterly, incorporating external credit rating information as well as internal information on the credit quality of the financial asset. For debt instruments that are not receivables from financial services, a significant increase in credit risk is assessed mainly based on past-due information. For contract assets, trade and other receivables, a simplified approach is applied whereby ECL are initially measured over the lifetime of the instrument. The Group considers its exposure to credit risk as of December 31, 2021, and 2020 to be as follows: December 31, 2021 2020 Deposits and loans issued 208,018 118,594 Cash and cash equivalents 40,590 85,405 Trade and other receivables 39,795 35,031 Securities held by MTS Bank 24,737 21,824 Mutual funds 10,719 10,699 Assets in Sistema Capital trust management 10,374 10,313 Notes 9,158 9,583 Derivative financial instruments 5,171 5,072 Contingent consideration 1,867 2,631 Investments in equity 1,228 400 Assets under option agreements 112 228 Other 3,088 1,796 Information on the Group’s exposure to credit risk on guarantees issued and commitments on loans of MTS Bank is presented in Note 30. In accordance with the provisions of the internal Group regulations on allocate of free funds, the aggregate credit risk exposure the Group may have to one counterparty is limited. The Group maintains a mixture of cash and cash equivalents, investments, derivatives and certain other financial instruments within various financial institutions. Those are approved as required by internal procedure related to selection of financial institutions to allocate funds. Credit rating assigned by international rating agencies is a main criteria to consider in the process of financial institutions selection. MTS Bank performs daily monitoring of future expected cash flows on the operations of both clients and banks, which is a part of the management process of assets and liabilities. The credit risk exposure is monitored on a regular basis to ensure that the credit limits and credit worthiness guidelines established by the MTS Bank’s risk management policy are not breached. Concentrations of credit risk with respect to trade receivables are limited given that the Group’s customer base is large and unrelated. Therefore, management believes there is no further credit risk provision required in excess of the normal provision for bad and doubtful receivables. |
BANK FINANCIAL ASSETS AND LIABI
BANK FINANCIAL ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
BANK FINANCIAL ASSETS AND LIABILITIES | |
BANK FINANCIAL ASSETS AND LIABILITIES | 30. MTS Bank operations in Russia are susceptible to risks as disclosed in Note 34. The Group conducts stress testing to determine its exposure to significant types of risk, as well as to assess the risks of the threat of the global COVID-19 pandemic. In July 2021, Fitch Ratings changed the outlook on the MTS Bank's rating from “Stable” to “Positive”, following the upward revision of outlook for MTS PJSC. The agency also noted the strengthening of the MTS Bank's synergy with the parent telecommunications company. Bank deposits and loans to customers The table below represents the structure and amounts of current and non-current bank deposits and loans to customers as of December 31, 2021 and 2020. December 31, 2021 2020 Loans to customers 223,566 130,164 Due from banks 3,514 2,950 Allowance for ECL (21,144) (16,446) Total bank deposits and loans to customers, net 205,936 116,668 Less: current portion (87,594) (52,676) Bank deposits and loans to customers, non-current 118,342 63,992 The structure and amounts of bank loans to customers as of December 31, 2021 and 2020 is presented in the table below: December 31, 2021 2020 Loans to legal entities Corporate borrowers 28,409 26,602 Medium-sized enterprises and small businesses 1,706 1,736 Total loans to legal entities 30,115 28,338 Loans to individuals Mortgage loans 16,553 14,384 Consumer loans 139,766 65,142 Credit cards 36,933 21,874 Other 200 426 Total loans to individuals 193,452 101,826 Due from banks Time deposits with banks 1,781 1,770 Obligatory reserves with the Central Bank of Russia 1,733 1,180 Total due from banks 3,514 2,950 Total bank deposits and loans to customers 227,080 133,114 Less: allowance for expected credit losses (21,144) (16,446) Total bank deposits and loans to customers, net 205,936 116,668 The table below summarizes carrying value of loans to customers aggregated by types of collateral obtained by the Group: December 31, 2021 2020 Guaranties 22,380 17,200 Pledge of real estate 19,115 18,733 Securities 284 370 Pledge of equipment 1 100 Rights of claim, pledge of inventories or own promissory notes and by other collateral — 156 Unsecured loans 181,787 93,605 Allowance for expected credit losses (21,114) (16,436) Total loans to customers, net 202,453 113,728 The balances above do not necessarily reflect the fair value of collateral received. Movements in the allowance for impairment losses attributable to bank deposits and loans to customers for the year ended December 31, 2021 and 2020 are presented in the table below: Loans to Due from customers banks Total Balance as at January 1, 2021 16,436 10 16,446 Provision charge/release 11,046 20 11,066 Recovery of previously written-off assets 1,557 — 1,557 Bad debt written-off (3,361) — (3,361) Sale of loans (4,324) — (4,324) Other movements (240) — (240) Balance as at December 31, 2021 21,114 30 21,144 Loans to Due from customers banks Total Balance as at January 1, 2020 10,024 7 10,031 Provision charge/release 8,271 3 8,274 Recovery of previously written-off assets 565 — 565 Bad debt written-off (2,145) — (2,145) Sale of loans (279) — (279) Balance as at December 31, 2020 16,436 10 16,446 Movements in provision for expected credit losses on loans to legal entities for the year ended December 31, 2021 and 2020 were as follows: Stage 1 Stage 2 Stage 3 Total Balance as at January 1, 2021 899 141 2,704 3,744 - Transfer to stage 1 119 (119) — — - Transfer to stage 2 (46) 49 (3) — - Transfer to stage 3 (105) (26) 131 — New financial assets originated or purchased 317 — — 317 Change due to change of credit risk (126) (20) (1,433) (1,579) Write-offs — — (79) (79) Recovery of previously written-off assets — — 975 975 Other movements (240) — — (240) Balance as at December 31, 2021 818 25 2,295 3,138 Stage 1 Stage 2 Stage 3 Total Balance as at January 1, 2020 681 77 3,199 3,957 - Transfer to stage 1 1 (1) — — - Transfer to stage 2 (66) 66 — — - Transfer to stage 3 (30) (47) 77 — New financial assets originated or purchased 418 — — 418 Change due to change of credit risk (105) 46 38 (21) Sale of loans — — (279) (279) Write-offs — — (515) (515) Recovery of previously written-off assets — — 184 184 Foreign exchange difference — — — — Balance as at December 31, 2020 899 141 2,704 3,744 Movements in provision for expected credit losses attributable to loans to individuals for the year ended December 31, 2021 and 2020 were as follows: Stage 1 Stage 2 Stage 3 Total Balance as at January 1, 2021 3,099 1,446 8,147 12,692 - Transfer to stage 1 1,809 (1,633) (176) — - Transfer to stage 2 (939) 1,220 (281) — - Transfer to stage 3 (278) (4,691) 4,969 — New financial assets originated or purchased 3,821 — — 3,821 Change due to change of credit risk (1,419) 7,019 2,887 8,487 Write-offs — — (3,282) (3,282) Sales — — (4,324) (4,324) Recovery of previously written-off assets — — 582 582 Balance as at December 31, 2021 6,093 3,361 8,522 17,976 Stage 1 Stage 2 Stage 3 Total Balance as at January 1, 2020 1,808 923 3,336 6,067 - Transfer to stage 1 1,396 (1,172) (224) — - Transfer to stage 2 (415) 594 (179) — - Transfer to stage 3 (2) (3,848) 3,850 — New financial assets originated or purchased 1,226 — — 1,226 Change due to change of credit risk (914) 4,949 2,613 6,648 Write-offs — — (1,631) (1,631) Recovery of previously written-off assets — — 382 382 Balance as at December 31, 2020 3,099 1,446 8,147 12,692 The following valuation categories represent the Group’s classification of credit quality of the loans: ● Low to fair risk ● Monitoring ● Impaired The table below summarizes information regarding the quality of loans to individuals: As of December 31, 2021 Stage 1 Stage 2 Stage 3 Total Low to fair risk 174,667 756 — 175,423 Monitoring — 7,125 832 7,957 Impaired — — 10,072 10,072 Loss allowance (6,093) (3,361) (8,522) (17,976) Total 168,574 4,520 2,382 175,476 As of December 31, 2020 Stage 1 Stage 2 Stage 3 Total Low to fair risk 88,058 — — 88,058 Monitoring — 3,816 306 4,122 Impaired — — 9,646 9,646 Loss allowance (3,099) (1,446) (8,147) (12,692) Total 84,959 2,370 1,805 89,134 The table below summarizes information regarding the quality of loans to legal entities: As of December 31, 2021 Stage 1 Stage 2 Stage 3 Total Low to fair risk 20,575 721 — 21,296 Monitoring 5,700 72 — 5,772 Doubtful — — 767 767 Impaired — — 2,280 2,280 Loss allowance (818) (25) (2,295) (3,138) Total 25,457 768 752 26,977 As of December 31, 2020 Stage 1 Stage 2 Stage 3 Total Low to fair risk 12,136 2,947 — 15,083 Monitoring 6,106 3,649 — 9,755 Doubtful — — 877 877 Impaired — — 2,623 2,623 Loss allowance (899) (141) (2,704) (3,744) Total 17,343 6,455 796 24,594 Analysis by credit quality of loans to individuals outstanding as of December 31, 2021 is as follows: Provision for Provision for ECL to As of December 31, 2021 Gross loans ECL Net loans gross loans Collectively assessed Not past due 175,422 (6,297) 169,125 4 % Overdue: up to 30 days 3,989 (1,090) 2,899 27 % 31 to 60 days 2,007 (1,240) 767 62 % 61 to 90 days 1,584 (1,093) 491 69 % 91 to 180 days 3,248 (2,499) 749 77 % over 180 days 6,641 (5,659) 982 85 % Total collectively assessed loans 192,891 (17,878) 175,013 9 % Individually impaired Not past due 364 (22) 342 6 % Overdue: up to 30 days — — — 0 % 31 to 60 days 8 — 8 0 % 61 to 90 days 3 (1) 2 33 % 91 to 180 days 5 (1) 4 20 % over 180 days 181 (74) 107 41 % Total individually impaired loans 561 (98) 463 17 % Total 193,452 (17,976) 175,476 9 % Analysis by credit quality of loans to medium-sized enterprises and small businesses outstanding as of December 31, 2021 is as follows: Provision for Provision for ECL to As of December 31, 2021 Gross loans ECL Net loans gross loans Collectively assessed Not past due 1,079 (22) 1,057 2 % Overdue: — up to 30 days 19 (8) 11 42 % 31 to 60 days 15 (14) 1 93 % 61 to 90 days 11 (10) 1 91 % 91 to 180 days 14 (11) 3 79 % over 180 days 568 (374) 194 66 % Total collectively assessed loans 1,706 (439) 1,267 26 % Analysis by credit quality of loans to individuals outstanding as of December 31, 2020 is as follows: Provision for Provision for ECL to gross As of December 31, 2020 Gross loans ECL Net loans loans Collectively assessed Not past due 88,056 (3,101) 84,955 4 % Overdue: up to 30 days 2,370 (507) 1,863 21 % 31 to 60 days 841 (506) 335 60 % 61 to 90 days 605 (432) 173 71 % 91 to 180 days 1,739 (1,373) 366 79 % over 180 days 7,523 (6,431) 1,092 85 % Total collectively assessed loans 101,134 (12,350) 88,784 12 % Individually impaired Not past due 256 (90) 166 35 % Overdue: up to 30 days 46 (12) 34 0 % 31 to 60 days 7 — 7 0 % 61 to 90 days — — — — 91 to 180 days 6 — 6 0 % over 180 days 377 (240) 137 64 % Total individually impaired loans 692 (342) 350 49 % Total 101,826 (12,692) 89,134 12 % Analysis by credit quality of loans to medium-sized enterprises and small businesses outstanding as of December 31, 2020 is as follows: Provision for Provision for ECL to gross As of December 31, 2020 Gross loans ECL Net loans loans Collectively assessed Not past due 1,025 (16) 1,009 2 % Overdue: up to 30 days 29 (6) 23 21 % 31 to 60 days 8 (3) 5 37 % 61 to 90 days 8 (5) 3 64 % 91 to 180 days 22 (12) 10 54 % over 180 days 644 (407) 237 63 % Total collectively assessed loans 1,736 (449) 1,287 26 % Bank deposits and liabilities The table below represents the structure and amounts of current and non-current bank deposits and liabilities as of December 31, 2021 and 2020. December 31, 2021 2020 Customer accounts 192,177 139,438 Due to banks and other financial institutions 21,430 24,644 Debt securities issued 5,581 1,840 Financial liabilities at fair value through profit or loss — 2 Other financial liabilities 2,181 1,753 Total bank deposits and liabilities 221,369 167,677 Less: current portion (207,056) (165,794) Total bank deposits and liabilities, non-current 14,313 1,883 The structure and amounts of customer accounts of December 31, 2021 and 2020 are presented below: December 31, 2021 2020 Legal entities - Current/settlement accounts 13,311 13,163 - Term deposits 63,003 19,466 Individuals - Current/settlement accounts 20,654 18,219 - Term deposits 95,209 88,590 Total customer accounts 192,177 139,438 The structure and amounts of due to banks as of December 31, 2021 and 2020 are presented below: December 31, 2021 2020 Loans under repurchase agreements 9,333 20,540 Loans and term deposits from banks and other financial institutions 9,474 2,732 Correspondent accounts of other banks 2,623 1,372 Total due to banks 21,430 24,644 Loans under repurchase agreements were secured by the following collateral: ● Securities measured at fair value through profit/loss with the value of RUB 1,946 million and RUB 9,678 million as of December 31, 2021 and 2020 respectively; ● Securities measured at amortized cost with the value of RUB 8,624 million and RUB 1,557 million as of December 31, 2021 and 2020 respectively; ● Federal Loan Bonds (OFZ) received from Deposit Insurance Agency (DIA) as a subordinated securities loan in the amount of RUB 0 million and RUB 6,374 million as of December 31, 2021 and 2020 respectively. In November 2015, MTS Bank received a subordinated debt of RUB 7,246 million in the form of OFZ from the state corporation DIA with the date of maturity January 22, 2025. In accordance with the terms of the contract, MTS Bank should return the securities to the creditor at the end of the contract period. The Group does not recognize the securities and the obligation to return them to the creditor in the consolidated statement of financial position as of December 31, 2021 and 2020. In accordance with the contract, MTS Bank should comply with certain covenants with respect to capital, loan portfolio, employee benefits. If the above conditions are not met, DIA may apply penalties to MTS Bank. The contract also includes certain restrictions on sale or repledge of the securities by MTS Bank. An analysis of liquidity and interest rate risk inherent to bank assets as of December 31, 2021 and 2020 is presented in the following table. The following tables, based on the information provided to the management of the Group, reflect the structure of assets and liabilities in accordance with the contractual maturity, with the exception of trading securities at fair value through profit or loss (classified as up to 1 month) and cash placed in the Central Bank of the Russian Federation as obligatory reserve deposits (FOR). Obligatory reserve deposits are allocated by age pro rate to customer accounts. In the liquidity analysis, the deposits of individuals are disclosed by maturities in accordance with the agreement. According to Russian legislation these deposits can be withdrawn upon a request within 1 month. However, on the basis of the analysis of the Group’s history and experience, such deposits are extended rather than withdrawn. Up to 1 month to 3 months to 1 year to Over Maturity As of December 31, 2021 1 month 3 months 1 year 5 years 5 years undefined Total Financial assets Financial assets at fair value through profit or loss 24,769 — — — — 1 24,770 Due from banks 1,781 — — — — — 1,781 Loans to customers 9,985 18,848 50,342 109,949 11,346 1,983 202,453 Investments in securities 9 514 5,555 2,808 — — 8,886 Total interest bearing financial assets 36,544 19,362 55,897 112,757 11,346 1,984 237,890 Cash and cash equivalents 15,974 — — — — — 15,974 Due from banks — — — — — 1,733 1,733 Other financial assets 2,272 6 15 — — 31 2,324 Total non-interest bearing financial assets 18,246 6 15 — — 1,764 20,031 Total financial assets 54,790 19,368 55,912 112,757 11,346 3,747 257,920 Up to 1 month to 3 months to 1 year to Over 5 Maturity 1 month 3 months 1 year 5 years years undefined Total Financial liabilities Due to banks and other financial institutions (18,788) — — (19) — — (18,807) Customer accounts (35,294) (13,801) (95,472) (9,114) — — (153,681) Debt securities issued (32) — (350) (5,199) — — (5,581) Lease obligations (17) (44) (200) (471) — — (732) Total interest bearing financial liabilities (54,131) (13,845) (96,022) (14,803) — — (178,801) Due to banks and other financial institutions (2,623) — — — — — (2,623) Customer accounts (38,496) — — — — — (38,496) Other financial liabilities (2,857) (1,147) (2,262) — — — (6,266) Total non-interest bearing financial liabilities (43,976) (1,147) (2,262) — — — (47,385) Total financial liabilities (98,107) (14,992) (98,284) (14,803) — — (226,186) Liquidity gap (43,317) 4,376 (42,372) 97,954 11,346 Stable sources of funding 43,901 (2,392) 43,814 (3,519) (81,804) Net liquidity gap 584 1,984 1,442 94,435 (70,458) Cumulative liquidity gap 584 2,568 4,010 98,445 27,987 Up to 1 month to 3 months to 1 year to Over Maturity As of December 31, 2020 1 month 3 months 1 year 5 years 5 years undefined Total Financial assets Financial assets at fair value through profit or loss 21,823 — — — — 1 21,824 Due from banks 16,915 — — — — — 16,915 Loans to customers 4,547 8,134 34,523 55,438 8,971 1,971 113,584 Investments in securities 15 166 643 8,760 — — 9,584 Total interest bearing financial assets 43,300 8,300 35,166 64,198 8,971 1,972 161,907 Cash and cash equivalents 22,274 — — — — — 22,274 Due from banks 1,180 — — — — — 1,180 Currency forwards and options not designated as hedges 1 1 — — — — 2 Other financial assets 876 125 35 — — 47 1,083 Total non-interest bearing financial assets 24,331 126 35 — — 47 24,539 Total financial assets 67,631 8,426 35,201 64,198 8,971 2,019 186,446 Up to 1 1 month to 3 months to 1 year to Over month 3 months 1 year 5 years 5 years Total Financial liabilities Due to banks and other financial institutions (22,962) — (127) — — (23,089) Customer accounts (19,046) (15,049) (69,677) (1,423) — (105,195) Debt securities issued (1,204) — (341) (295) — (1,840) Lease obligations (11) (39) (164) (320) — (534) Total interest bearing financial liabilities (43,223) (15,088) (70,309) (2,038) — (130,658) Currency forwards and options not designated as hedges (1) (1) — — — (2) Due to banks and other financial institutions (1,372) — — — — (1,372) Customer accounts (33,908) — — — — (33,908) Other financial liabilities (1,837) (492) (1,472) — — (3,801) Total non-interest bearing financial liabilities (37,118) (493) (1,472) — — (39,083) Total financial liabilities (80,341) (15,581) (71,781) (2,038) — (169,741) Liquidity gap (12,710) (7,155) (36,580) 62,160 8,971 Stable sources of funding 41,502 2,342 30,933 (15,732) (59,045) Net liquidity gap 28,792 (4,813) (5,647) 46,428 (50,074) Cumulative liquidity gap 28,792 23,979 18,332 64,760 14,686 Analysis of the liquidity and interest rate risks as of December 31, 2021 and 2020 is presented in the following table. The amounts in the table below represent future aggregate undiscounted cash flows. Weighted average Up to 1 month to 3 months to 1 year to Over Maturity As of December 31, 2021 interest rate 1 month 3 months 1 year 5 years 5 years undefined Total Interest bearing financial liabilities Due to banks 8.4 % (18,788) — (19) — — — (18,807) Customer accounts 6.3 % (35,402) (13,964) (98,665) (10,164) — — (158,195) Debt securities issued 7.3 % (33) — (695) (5,389) — — (6,117) Lease obligations 5.2 % (11) (45) (200) (471) (1) — (728) Total interest bearing financial liabilities (54,234) (14,009) (99,579) (16,024) (1) — (183,847) Non-interest bearing financial liabilities Due to banks (2,623) — — — — — (2,623) Customer accounts (38,496) — — — — — (38,496) Other financial liabilities (2,857) (1,147) (2,262) — — — (6,266) Total non-interest bearing financial liabilities and commitments (43,976) (1,147) (2,262) — — — (47,385) Total financial liabilities (98,210) (15,156) (101,841) (16,024) (1) — (231,232) Weighted average Up to 1 month to 3 months to 1 year to Over Maturity As of December 31, 2020 interest rate 1 month 3 months 1 year 5 years 5 years undefined Total Interest bearing financial liabilities Due to banks 4.4 % (22,962) — (127) — — — (23,089) Customer accounts 5.9 % (19,265) (15,292) (71,248) (1,458) — — (107,263) Debt securities issued 4.0 % (1,204) — (348) (321) — — (1,873) Lease obligations 6.1 % (10) (40) (165) (319) — — (534) Total interest bearing financial liabilities (43,441) (15,332) (71,888) (2,098) — — (132,759) Non-interest bearing financial liabilities — — — — — — — Financial liabilities at fair value through profit or loss — — — — — — — Due to banks (1,372) — — — — — (1,372) Customer accounts (33,908) — — — — — (33,908) Other financial liabilities (1,837) (492) (1,472) — — — (3,801) Total non-interest bearing financial liabilities and commitments (37,117) (492) (1,472) — — — (39,081) Total financial liabilities (80,558) (15,824) (73,360) (2,098) — — (171,840) The Group has contingent liabilities (future period obligations) represented by bank guarantees in amount of RUB 21.9 million as at December 31, 2021 (RUB 9.8 million as at December 31, 2020). Information on the maximum amount of credit risk on guarantees issued and commitments on loans is presented below: As of December 31, 2021 Stage 1 Stage 2 Stage 3 Total Commitments on loans 36,759 745 33 37,537 Guarantees issued 13,798 2,257 100 16,155 Less provision (687) (15) (50) (752) Total commitments on loans and guarantees issued 49,870 2,987 83 52,940 As of December 31, 2020 Stage 1 Stage 2 Stage 3 Total Commitments on loans 21,410 1,729 56 23,195 Guarantees issued 21,426 2,084 247 23,757 Less provision (340) (33) (213) (586) Total commitments on loans and guarantees issued 42,496 3,780 90 46,366 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTIES | |
RELATED PARTIES | 31. RELATED PARTIES Related parties include the controlling shareholder of the Group, entities under common ownership with the Group, affiliated companies, associates and joint ventures. Terms and conditions of transactions with related parties – significant amounts of impairment relating to receivables owed by related parties as well as The Group has neither the intent nor the ability to offset the outstanding accounts payable and accounts receivable with related parties under the terms of existing agreements. Balances of related parties’ transactions were as follows: December 31, 2021 2020 ASSETS FROM RELATED PARTIES NON-CURRENT ASSETS: Property, plant and equipment Sistema's subsidiaries 1,347 1,096 Other related parties 34 13 Right-of-use assets, Gross Book Value Sistema's subsidiaries 4,432 4,845 Other related parties 111 112 Right-of-use assets, Accumulated Depreciation Sistema's subsidiaries (1,586) (1,580) Other related parties (46) (17) Other investments The Group’s associates 625 159 Sistema's subsidiaries 117 370 Other related parties 2 — Accounts receivable, related parties Sistema's subsidiaries 5,000 5,209 Bank deposits and loans to customers Sistema's associates 2,587 1,376 Sistema's subsidiaries 1,179 1,480 Total non-current assets 13,802 13,063 CURRENT ASSETS: Accounts receivable, related parties Sistema's subsidiaries 1,255 4,571 The Group’s associates 911 1,397 Sistema, parent company - 2,829 Other related parties 121 183 Bank deposits and loans to customers Sistema's associates 2,078 2,819 Sistema's subsidiaries 820 3 Key management personnel of the Group and its parent 87 48 Short-term investments Sistema's subsidiaries 2,377 3 Sistema, parent company 1,443 — Cash and cash equivalents Sistema's subsidiaries 1,311 321 Other financial assets Sistema, parent company 1,829 1,831 Sistema's subsidiaries 300 461 Other related parties 109 — Other assets Sistema's subsidiaries 1,059 1,518 Other related parties 83 8 Total current assets 13,783 15,992 TOTAL ASSETS FROM RELATED PARTIES 27,585 29,055 LIABILITIES TO RELATED PARTIES NON-CURRENT LIABILITIES: Lease obligations Sistema's subsidiaries 3,968 4,801 Other related parties 70 77 Bank deposits and liabilities Key management personnel of the Group and its parent 1,433 124 Total non-current liabilities 5,471 5,002 CURRENT LIABILITIES: Accounts payable, related parties Sistema's subsidiaries 2,756 1,631 The Group’s associates 711 553 Sistema's associates 632 958 Other related parties 8 4 Borrowings The Group’s associates 2,129 1,776 Other related parties 11 16 Lease obligations Sistema's subsidiaries 551 724 Other related parties 13 14 Bank deposits and liabilities Key management personnel of the Group and its parent 32,886 34,708 Sistema's subsidiaries 22,312 10,752 Sistema's associates 9,163 2,689 Sistema, parent company 2,042 3,218 Other related parties 376 881 Total current liabilities 73,590 57,924 TOTAL LIABILITIES TO RELATED PARTIES 79,061 62,926 Operating transactions – At the same time the Group incurred security expenses, roaming and interconnect expenses, transfer of line-cable structures, dismantling equipment expenses, rent expenses and other expenses, and recognized income from scrap metal sales and other operations. 2021 2020 2019 Revenue Sistema's subsidiaries 4,294 4,371 3,740 Sistema's associates 752 615 407 The Group's associates 622 418 550 Other related parties 691 428 235 Total Revenue 6,359 5,832 4,932 Cost of services Sistema's subsidiaries 2,143 599 507 Key management personnel of the Group and its parent 1,476 1,830 1,973 Sistema's associates 281 127 139 Sistema, parent company 233 141 377 Other related parties 173 145 241 Selling, general and administrative expenses Key management personnel of the Group and its parent 4,256 2,003 2,372 Sistema's subsidiaries 728 625 672 Other related parties 84 66 144 Other operating income / (expense) Sistema's subsidiaries 2,831 2,160 5,203 Other related parties 59 (13) (13) Operating profit / (loss) (125) 2,443 3,697 Finance income / (loss) Sistema's subsidiaries 935 1,492 1,259 The Group's associates (101) (63) 475 Sistema, parent company 79 295 367 Other related parties (6) 7 8 Other non-operating income / (expense) The Group's associates — (278) — Other related parties 41 — — Profit before tax 823 3,896 5,806 During the years ended December 31, 2021, 2020 and 2019, the Group acquired property, plant and equipment and intangible assets from the related parties in the amount of: 2021 2020 2019 Sistema's associates 2,530 6,299 410 Sistema's subsidiaries 10,330 3,324 656 The Group's associates 122 127 178 Other related parties — 112 — Total purchases of property, plant and equipment, intangible assets and other assets, related parties 12,982 9,862 1,244 Lease payments – Business Nedvizhimost In February 2015 and further in May 2015, the Group sold its 100% stake in Rent Nedvizhimost to Business Nedvizhimost for RUB 8,500 million, repaid mainly in 2015-2018. The remaining part of receivable was restructured in 2018 implying Central Bank key rate + 1.5% and maturing in December 31, 2021. As of December 31, 2021 receivables in amount of RUB 3,372 was fully repaid. In March 2019, in order to optimize the processes of real estate management, the Group sold a number of buildings with carrying value of RUB 1,479 million to Business Nedvizhimost for the consideration of RUB 7,247 million (including VAT). The consideration is payable by installments for 10 years at 9% per annum with the collateral in the form of disposed buildings granted by the buyer. At the same time, the Group entered into a number of agreements to lease spaces in the buildings sold for the period of up to 15 years (leaseback). As a result of this transaction, the Group recorded right-of-use assets of RUB 3,123 million, lease obligation of RUB 5,197 million and recognized a gain in the amount of RUB 1,745 million as a part of “Other income” in consolidated statement of profit or loss in 2019. In December 2021, the Group purchased 5-year Sistema In March 2019, the Group disposed of its 18.69% interest in the Group’s associate OZON to Sistema for RUB 7,902 million (Note 16). As of December 31, 2021 Sistema has fully repaid its obligations. As of December 31, 2020 the balance of accounts receivable amounted to RUB 2,829 million. Nvision Group In October 2020, the Group disposed of 100% in Nvision Group to Sistema and since then it is considered to be a related party instead of subsidiary of the Group (Note 11). The Group continues to purchase software, services and other intangible assets from Nvision Group. The amounts software, services and other intangible assets purchased during the years ended December 31, 2021 and 2020, were RUB 7,181 million and RUB 2,261 million, respectively. Remuneration of key management personnel The management and directors are also entitled to cash-settled and equity-settled share-based payments. Related compensation accrued during the years ended December 31, 2021, 2020 and 2019, amounted to RUB 2,929 million, RUB 694 million and RUB 798 million, respectively, including social contributions amounted to RUB 338 million, RUB 79 million and RUB 53 million, respectively. For more details see Note 32. |
STOCK-BASED COMPENSATIONS
STOCK-BASED COMPENSATIONS | 12 Months Ended |
Dec. 31, 2021 | |
STOCK-BASED COMPENSATIONS | |
STOCK-BASED COMPENSATIONS | 32. STOCK-BASED COMPENSATIONS The Group has a number of share plans used to award shares to directors, executive officers and employees as part of their remuneration package. The Group share plans include both equity-settled and cash-settled compensations. Equity-settled share based awards are measured at fair value (excluding the effect on non-market-based conditions) at the date of grant. The fair value determined at the grant date of equity-settled share-based award is based on the Group’s estimate of the shares that will eventually vest and adjusted for the effect of non-market based conditions. A corresponding increase in additional paid-in capital is also recognized. For cash-settled based awards the fair value is newly determined at each reporting date and at the settlement date, the changes in the fair value are recognized in profit or loss, until the liability under the share plan is settled. The share awards have a maximum term of 3 years. The share awards granted in 2021 have an attached market condition based of Group’s market capitalization, which is taken into account when calculating the fair value of the share awards. The share awards granted before 2021 had only performance condition related to certain financial target (Free Cash Flow), which were treated as non-market vesting conditions. The fair value of share awards is based on the observed market price of the Group’s shares (ordinary or ADR), adjusted for expected dividends reduced to the current value using a risk-free interest rate. The equity-settled share based awards displayed the following development in the financial years 2021 and 2020: Twelve month ended December 31, 2021 2020 Weighted- Weighted- average fair average fair Shares value per share Shares value per share (in thousands) (in RUB) (in thousands) (in RUB) Outstanding at the beginning of the period 3,194 424 3,907 444 Granted during the period 18,733 249 1,818 415 Forfeited during the period (447) 407 (373) 391 Exercised during the period (814) (1) 406 (2,158) (2) 443 Outstanding at the end of the period 20,666 327 3,194 424 Exercisable at the end of the period 6,246 361 1,494 408 (1) The weighted-average exercise price of shares was RUB 375 . (2) The weighted-average exercise price of shares was RUB 487 . The equity-settled share based awards were estimated using the following range of exercise prices and the weighted-average remaining contractual terms: December 31, 2021 Weighted- average Range of remaining Shares (in exercise prices contractual term thousands) (in RUB) (in month) Outstanding shares 20,666 Incl. to be exercised in 2022 5,689 153-599 3 to be exercised in 2023 6,241 136-545 15 to be exercised in 2024 8,736 121-846 27 The cash-settled share based awards displayed the following development in the financial years 2021 and 2020: Twelve month ended December 31, 2021 2020 Weighted- Weighted- average fair average fair Shares value per share Shares value per share (in thousands) (in RUB) (in thousands) (in RUB) Outstanding at the beginning of the period 725 707 2,466 857 Granted during the period 3,788 423 510 782 Forfeited during the period (298) 678 (241) 782 Exercised during the period (729) (1) 707 (2,011) (1) 812 Outstanding at the end of the period 3,485 402 725 707 Exercisable at the end of the period 1,598 638 725 707 (1) The weighted-average exercise price of shares is equal weighted-average fair value. The cash-settled share based awards were estimated using the following range of exercise prices and the weighted-average remaining contractual terms: December 31, 2021 Weighted- average Range of remaining Shares exercise prices contractual term (in thousands) (in RUB) (in month) Outstanding shares, Incl. 3,485 to be exercised in 2022, based on ADR 969 953 3 to be exercised in 2022, based on ordinary shares 629 153 3 to be exercised in 2023, based on ordinary shares 629 136-273 15 to be exercised in 2024, based on ordinary shares 1,258 121-605 27 Due to high volatility of Russian stock market at the end of the financial year 2021, the market performance condition for equity-settled share based awards granted in 2021 was modified. The resulting change in the incremental fair value of the share-based compensation totaled to RUB 145 per share for instruments to be executed as of December 31, 2021, RUB 68 per share for instruments to be executed as of December 31, 2022, and RUB 49 per share for instruments to be executed as of December 31, 2023, respectively. Total expense in respect of Group’s share plans included in the consolidated statement of profit or loss in the financial year 2021 and 2020 totaled to RUB 4,767 million and RUB 2,176 million, respectively, thereof RUB 3,690 million and RUB 819 related to equity-settled share based awards. As of December 31, 2021 and 2020, total liabilities recorded for share-based awards amounted to RUB 2,285 million and RUB 962 million, respectively. The fair value of share-based awards vested at December 31, 2021 and December 31, 2020 was RUB 1,530 million and RUB 896 million, respectively. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 33. SHAREHOLDERS’ EQUITY Common stock (ordinary shares) Shares of common stock repurchased by the Group are recorded at cost as treasury stock and reduce the shareholders’ equity in the Group’s consolidated financial statements. As of December 31, 2021, the total shares in treasury stock comprised 335,757,457 and 1,662,624,118 shares were outstanding. As of December 31, 2020, the total shares in treasury stock comprised 271,479,406 and 1,726,902,169 shares were outstanding. Information on shares repurchased by the Group is presented as follows: December, 31 2021 2020 2019 Repurchased from: Shares RUBm Shares RUBm Shares RUBm Open market 42,512,570 13,981 26,038,847 8,525 32,589,740 8,472 Sistema Finance 22,796,040 7,503 22,758,872 7,485 28,929,344 7,450 Total 65,308,610 21,484 48,797,719 16,010 61,519,084 15,922 Nature and purpose of reserves Additional paid in capital Share-based payment programs Foreign currency translation reserve Financial instruments revaluation reserve Remeasurements of the net defined benefit liability Non-controlling interests As of December 31, 2021 and 2020, MGTS was the only subsidiary of the Group, which had material non-controlling interests. The summarized financial information of MGTS is presented as follows: MGTS 2021 2020 2019 Non-controlling interests opening balance (4,055) (3,328) (3,649) Profit for the year attributable to non-controlling interests (803) (675) (806) Dividends to non-controlling interests — — 1,123 Other (51) (52) 4 Non-controlling interests closing balance (4,909) (4,055) (3,328) December 31, MGTS 2021 2020 Current assets 34,282 17,052 Non-current assets 57,631 66,129 Current liabilities (13,497) (18,471) Non-current liabilities (17,691) (19,881) Year ended December 31, MGTS 2021 2020 2019 Revenue, gross of intercompany (41,255) (41,103) (39,479) Profit for the year, gross of intercompany (14,203) (11,811) (14,148) Dividends As a leading telecommunications group with a home base in developing markets, the primary need of the Group is to maintain sufficient resources and flexibility to meet financial and operational requirements. At the same time, the Group continually seeks ways to create shareholder value through both its commercial and financial strategies, including organic and non-organic development as well as the Group’s capital management practices. The Group continues to include dividend payments as part of its commitment to maximizing shareholder value. Decisions on dividends are proposed by the Board of Directors and voted upon thereafter at a General Meeting of Shareholders. In determining the Company’s dividend payout, the Board of Directors considers a number of factors, including cash flow from operations, capital expenditures, and the Group’s debt position. For 2019-2021, MTS management commited to a minimum cumulative payout of RUB 28.0 per share per calendar year through semi-annual payments. The Group may take decisions on the dividend payout based not only on annual results but also on interim results for three, six or nine months of the fiscal year. Annual and interim dividend payments, if any, must be recommended by the Board of Directors and approved by the shareholders. In accordance with Russian laws, earnings available for dividends are limited to profits determined under Russian Accounting Standards (RAS), denominated in Russian Rubles, after certain deductions. The following table summarizes the Group’s declared cash dividends for the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 Dividends declared (including dividends on treasury shares of 12,082, 6,936 and 9,449 respectively) 74,049 58,948 83,751 Dividends, RUB per ADS 74.12 59.00 83.82 Dividends, RUB per share 37.06 29.50 41.91 As of December 31, 2021 and 2020, dividends payable were RUB 68 million and RUB 108 million, respectively, and included in the trade and other payables within the consolidated statement of financial position. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 34. COMMITMENTS AND CONTINGENCIES Capital commitments Taxation The Group estimates the following contingent liabilities in respect of additional tax settlements: December 31, 2021 2020 Contingent liabilities for additional taxes other than income tax 860 1,043 Contingent liabilities for additional income taxes 1,132 892 Licenses Litigation Litigation related to operations in Turkmenistan - In July 2018, the Group filed a Request for Arbitration against the Sovereign State of Turkmenistan with the World Bank’s International Center for Settlement of Investments Disputes (“ICSID”) in order to protect its legal rights and investments in Turkmenistan. As of December 31, 2021 the case is pending. Antimonopoly proceedings Russia. In December 2020, MTS cassation appeal was rejected by the Judicial Chamber of the Supreme Court. In March 2021, Deputy Chairman of the Supreme Court of the Russian Federation upheld the rejection. In August 2021, the Group paid the fine imposed by FAS Russia in full amount of RUB 189 million. In April, June and July 2021, JSC “Tinkoff Bank”, PJSC “Sovсombank” and JSC “Raiffeisenbank” initiated litigations against the Group, claiming reimbursement for losses incurred in connection with violation of antimonopoly laws in respect to establishing unreasonably high bulk SMS prices. Commercial Court of the City of Moscow has dismissed all three claims in full. It’s currently impossible to predict the timing or outcome of the litigations on violation of antimonopoly laws in respect to establishing unreasonably high bulk SMS prices. Management of the Group believes that as of December 31, 2021 it has adequately provided for claims related to SMS pricing. Potential adverse effects of economic instability and sanctions in Russia On February 28, 2022, trading on the Moscow Exchange in all equity securities was suspended (including MTS PJSC ordinary shares), with the suspension later extended through at least March 1. Also on February 28, the New York Stock Exchange halted trading in the Company’s American depositary shares (“ADSs”) and those of certain other Russian companies. Developments relating to these matters are highly unpredictable, occur swiftly and often with little notice and are mostly outside the control of the Group, and the risk that any Group member, or individuals holding positions within the Group as well as its counterparties, may be affected by future sanctions designations cannot be excluded. Current and future risks to the Group include, among others, the risk of reduced or blocked access to capital markets and ability to obtain financing on commercially reasonable terms (or at all), the risk of restrictions on the import of certain equipment and software, as well as the risk of further depreciation of the Russian ruble against other currencies (which has already occurred to a significant extent), which may adversely impact the Company's investment process as a significant portion of its capital expenditures are denominated in or linked to foreign currencies. In addition, rate hikes by the Central Bank of Russia, which has increased its key rate to 20%, will increase the Company's financing costs due to the impact on floating-rate credit facilities. In addition, the CBR has prohibited Russian securities market professionals from carrying out depositary activities and register maintenance and from effecting sales of securities of Russian companies by non-Russian residents (with a very limited number of exceptions), with the effect that, among other things, no ADSs can be converted into ordinary shares for such non-Russian residents. Furthermore, the CBR has prohibited Russian companies from making any payments, including dividends, on securities of Russian companies to non-Russian residents, with the result that any non-Russian resident holders of our ADSs as of the relevant record date for payment of dividends would be ineligible to receive such dividends. These developments could materially adversely affect the liquidity in, and the value of, our ADSs. Operations of MTS Bank, the Group’s subsidiary, are susceptible to the risks affecting the Group’s borrowers’ ability to repay amounts due to the Group, which may be impacted by the overall macroeconomic environment and business climate. Adverse changes in economic conditions may result in deterioration in the value of collateral held against loans and other obligations. The Group is currently unaware of any designation of the Company, its subsidiaries, or members of its management team with regards to sanctions recently imposed by the EU, US, UK, and certain other countries. Management remains focused on ensuring operational continuity and providing uninterrupted connectivity and other services for customers. Management believes it is taking the appropriate measures to support the sustainability of the Group’s business in the current circumstances. Compliance monitorship As of December 31, 2021 the Group has not received notice from the SEC, the DOJ or the monitor of any breach of the terms of the DPA or the Order. However, given a variety of factors, including the COVID-19 pandemic, the Group has agreed to a one-year extension of the DPA and the monitorship with the DOJ and the SEC to (i) provide the Group with adequate time to implement necessary enhancements to certain critical components of the Group’s anti-corruption compliance and ethics program and (ii) allow the monitor sufficient time to be able to complete its review of the remedial efforts, including the Group’s implementation of the monitor’s recommendations and an assessment of the sustainability of the Group’s remedial actions. The term of the monitorship will continue until September 2023. In connection with compliance monitorship, certain transactions were identified relating to the Group’s subsidiary in Armenia, and such transactions were disclosed to the DOJ and SEC. The DOJ and SEC have requested information regarding the transactions and the Group has initiated an investigation into the matter. It’s currently impossible to predict the timing or outcome of the investigation. In December 2020, the Group received a request for information from the DOJ concerning certain historical transactions with a supplier of telecommunication and information technology. Currently, the Group is cooperating to provide information to the DOJ and the SEC responsive to the request. Class action complaint |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 35. SUBSEQUENT EVENTS Refer to Note 34 for potential adverse effects of economic instability and sanctions in Russia. Acquisition of VisionLabs |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | |
Basis of preparation | Basis of preparation The consolidated financial statements have been prepared on a historical cost basis, unless disclosed otherwise. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Amounts in the consolidated financial statements are stated in millions of Russian Rubles (“RUB million”), unless indicated otherwise. The consolidated financial statements have been prepared on the assumption that the Group is a going concern and will continue in operation for the foreseeable future (Note 29). |
Basis of consolidation | Basis of consolidation Effective ownership interests in the Group’s significant subsidiaries were the following: Accounting December 31, December 31, method 2021 2020 RTC Consolidated 100.0 % 100.0 % MTS Bank Consolidated 99.9 % 99.9 % MGTS Group Consolidated 94.7 % 94.7 % Multiregional TransitTelecom (Note 5) Consolidated 100.0 % — MTS Armenia Consolidated 100.0 % 100.0 % Nvision Czech Republic Consolidated 100.0 % 100.0 % MDTZK LLC (Ticketland) Consolidated 100.0 % 100.0 % Kulturnaya Sluzhba (Ponominalu) Consolidated 100.0 % 100.0 % Sputnikovoe TV Consolidated 100.0 % 100.0 % IT Grad (Note 5) Consolidated 100.0 % 100.0 % MTS Avto (former Stopol) (Note 5) Consolidated 100.0 % 100.0 % "Zelenaya Tochka" Group – Achemar Holdings Ltd (Note 5) (1) Consolidated 100.0 % 51.0 % Oblachny Retail LLC Consolidated 100.0 % 50.8 % MTS Media Consolidated 100.0 % 100.0 % Navigation Information Systems Group Consolidated 94.7 % 94.7 % MTS Didgital (former MTS IT) Consolidated 100.0 % 100.0 % Kinopolis (Note 5) Consolidated 100.0 % 100.0 % Sistema Capital (Note 5) (1) Consolidated 100.0 % 30.0 % Stream Consolidated 100.0 % 100.0 % MTS Turkmenistan Consolidated 100.0 % 100.0 % MTS Artificial Intelligence Consolidated 100.0 % 100.0 % MWS Consolidated 100.0 % — Energy Group (Note 5) Consolidated 100.0 % — Dega Consolidated 100.0 % 100.0 % Stream Digital Consolidated 100.0 % 100.0 % Bastion Consolidated 100.0 % 100.0 % MTS International Funding Limited (2) Consolidated SE SE MTS Belarus (Note 16) Equity 49.0 % 49.0 % (1) Consolidated since 2021, accounted for as an equity investment in 2020 (2) A company organized and existing as a private limited company under the laws of Ireland. The Group does not have any equity in MTS International. It was established for the purpose of raising capital through the issuance of debt securities on the Irish Stock Exchange followed by transferring the proceeds through a loan facility to the Group. In 2010 and 2013, MTS International issued USD 750 million 8.625% notes due in 2020 (fully repaid in June 2020) and USD 500 million 5.0% notes due in 2023, respectively (Note 24). The notes are guaranteed by MTS PJSC in the event of default. MTS International does not perform any other activities except those required for notes servicing. The Group bears all costs incurred by MTS International in connection with the notes’ maintenance activities. Accordingly, the Group concluded that it exercises control over the entity. |
Acquisitions from entities under common control | Acquisitions from entities under common control |
Joint operations | Joint operations |
Non-current assets held for sale and discontinued operations | Non-current assets held for sale and discontinued operations A disposal group qualifies as discontinued operation if it is a component of the entity that either has been disposed of or is classified as held for sale, and: ● Represents a separate major line of business or geographical area of operations; ● Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; ● Or is a subsidiary acquired exclusively with a view to resale. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit or loss. Group's statement of cash flows include both cash flows from continuing and discontinued operations, amounts related to discontinued operations by operating, investing and financing activities are presented in Note 11. |
Vendor financing arrangemets | Vendor financing arrangemets – |
Functional currency translation methodology | Functional currency translation methodology ● ● ● ● ● Foreign-currency transactions are translated into the functional currency at the exchange rates at the dates of the transactions. At the reporting date, monetary items denominated in foreign currencies are translated at the closing rate, whereas non-monetary items are stated at the exchange rate at the date of their recognition. Exchange rate differences are recognized in profit or loss. For entities whose records are maintained in their functional currency, which is other than the reporting currency, all year-end assets and liabilities have been translated into U.S. Dollars (“USD”) at the period-end exchange rate set by local central banks. Subsequently, U.S. Dollars balances have been translated into Russian Rubles at the period-end exchange rate set by the Central Bank of Russia. Revenues and expenses have been translated at the average exchange rate for the period using the cross-currency exchange rate via the U.S. Dollar as described above. Translation differences resulting from the use of these rates are reported as a component of other comprehensive income. |
Standards, interpretations and amendments adopted | Standards, interpretations and amendments adopted in the financial year 2021 Amendments to IFRS9, IAS39, IFRS7, IFRS 4 and IFRS16 Interest Rate Benchmark Reform (Phase 2) Amendments to IFRS16 Covid-19 Related Rent Concessions Amendments to IFRS 1 and IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction (1) (1) None of these interpretations and amendments had material effect on the Group’s consolidated financial statements. Standards, interpretations and amendments in issue but not yet effective The Group has not applied the following new and revised IFRSs that have been issued but are not yet effective: Amendments to IAS 37 Onerous contracts – Cost of fulfilling a contract (1) Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use (1) Amendments to IFRS 3 Reference to Conceptual Framework (1) Amendments to IFRS Annual Improvements to IFRSs (2018-2020 Cycle) (1) Amendments to IAS 1 Classification of Liabilities as Current or Non-Current (2) IFRS 17 and amendments to IFRS17 Insurance Contracts (2) Amendments to IAS 8 Definition of Accounting Estimate (2) Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policy (2) Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (3) (1) Effective for annual periods beginning on or after January 1, 2022, with earlier application permitted. (2) Effective for annual periods beginning on or after January 1, 2023, with earlier application permitted. (3) The effective date for these amendments was deferred indefinitely. Early adoption continues to be permitted. These IFRS pronouncements are not expected to have a material impact on the Group's consolidated financial statements. |
Revenue recognition | Revenue is recognized to the extent that the Group has delivered goods or rendered services under an agreement, the amount of revenue can be reliably measured and it is probable that the economic benefits associated with the transaction will flow to the Group. Revenue is measured at the fair value of the consideration receivable, exclusive of value added taxes and discounts. The Group obtains revenue from providing mobile and fixed telecommunication services (access charges, voice and video calls, messaging, interconnect fees, fixed and mobile broadband, tv and musical content and connection fees), financial services, integration services, cloud services, tickets distribution, as well as selling equipment, accessories and software. Products and services may be sold separately or in bundle packages. The most significant part of revenue relates to prepaid contracts. Revenue for access charges, voice and video calls, rendering of cloud services, messaging, interconnect fees and fixed and mobile broadband is recognized as services are rendered. This is based upon either usage (minutes of traffic processed, volume of data transmitted) or passage of time (monthly subscription fees). Revenue from the sale of prepaid credit is deferred until such time as the customer consumes the services or the credit expires. Revenue from the provision of TV and music content is recognized as the Group renders the service and is recorded either at the gross amount billed to the customers or in the amount of commission fee receivable by the Group. Revenue from commission services for tickets distribution is recognized as services are rendered. Revenue from sales of goods (mainly mobile handsets, other mobile devices, software licences) is recognized when the significant risks and rewards of ownership have been transferred to the customer. For bundled packages, the Group accounts for individual products and services separately if they are distinct, which means that a product or service, as well as the customer benefit, is separately identifiable from other items in the bundled package and a customer can benefit from it. The arrangement consideration is allocated to each separate product and service, based on its relative fair value. The determined fair value of individual elements is generally based on prices at which the deliverable is regularly sold on a stand-alone basis after considering any appropriate volume discounts. The Group provides retrospective volume discounts under roaming agreements with international and local mobile operators. To estimate the variable consideration in relation to these discounts, the Group uses original data traffic adjusted on a monthly basis to reflect newly-available information. The resulting liability for the expected future discounts is recognized as a reduction of revenue within trade and other payables in the accompanying consolidated statement of financial position. For contracts that permit customers to return acquired mobile devices, the amount of recognized revenue is adjusted for expected product return or refunds, which are estimated based on the basis of historical data. The respective refund liability is recorded as provision in the accompanying consolidated statement of financial position. Revenue from the provision of financial services mainly relates to interest bearing assets of MTS Bank. Such revenue is recognized on an accrual basis using the effective interest method. Loan origination fees are deferred together with the related direct costs and are recognised as an adjustment to the effective interest rate of the loan. Comission revenue which is also a significant part of MTS Bank revenue is either recognized at the moment the related operation occurs, or during the period of customer contract duration. Revenue from integration and construction services mainly relates to project type contracts and is determined by reference to the stage of completion of each respective projects. The stage of completion is calculated using the input method – based on the proportion of costs incurred for work performed to date to the estimated total contract costs. Revenue is recognized cumulatively as total revenue under the project multiplied by percentage of completion as at reporting date. When it is probable that total contract costs will exceed the total contract revenue, the expected loss is recognized as an expense immediately. |
Contract balances | Contract balances Contract balances include trade receivables related to the recognized revenue, contract assets and contract liabilities. Trade receivables represent an unconditional right to receive consideration (primarily in cash). Contract assets represent accrued revenues that have not yet been billed to customers due to certain contractual terms other than the passage of time. This is the case in a bundled offering which combines the sale of a mobile device and the provision of mobile services for a fixed-period, where the mobile device is invoiced at a reduced price leading to the reallocation of a portion of amounts invoiced for mobile communication services to the supply of the mobile phone. The excess of the amount allocated to the mobile phone over the price invoiced is recognized as a contract asset and is thus transferred to trade receivables as the service is invoiced. The other part of contract assets relates to the Group’s rights to consideration for work completed but not yet billed for integration services projects. Contract liabilities represent amounts paid by customers to the Group before receiving the goods and/or services promised in the contract. This is the case for advances received from customers or amounts invoiced or amounts invoiced and paid for goods or services that are yet to be transferred. |
Cost to obtain and fulfill a contract | Cost to obtain and fulfill a contract The Group capitalizes certain incremental costs incurred in acquiring or fullfilling a contract with a customer if the management expects these costs to be recoverable. The Group uses a practical expedient from IFRS 15 which allows to expense contract costs as incurred when the expected contract duration is one year or less. Costs of acquiring a contract include commissions paid to a third-party distributors as well as the associated remuneration of the Group’s commercial employees for obtaining a contract with a customer with the expected duration of more than twelve months. These costs are amortized on a straight-line basis over the average life of a long-lived subscriber. Costs to fulfill a contract mainly relate to costs of equipment transferred to the subscribers required for the provision of services. These costs are amortized on a straight-line basis generally for the period of average subscriber life. |
Income tax | Income taxes of the Group’s Russia-incorporated entities have been calculated in accordance with Russian legislation and are based on the taxable profit for the period. The corporate income tax rate in Russia is 20%. The withholding tax rate on dividends paid within Russia is 13%. The foreign subsidiaries of the Group pay withholding taxes in their respective jurisdictions. Deferred tax assets and liabilities are recognized for temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases of assets and liabilities that will result in future taxable or deductible amounts. The deferred tax assets and liabilities are measured using the enacted or substantially enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. |
Cash and cash equivalents | Cash and cash equivalents represent cash on hand and in bank accounts, as well as short-term bank deposits, which have original maturities of less than three months. Other short-term highly liquid investments are treated as cash equivalents only if they are held for the purpose of meeting short-term cash commitments, are readily convertible to known amounts of cash and are subject to insignificant risk of change in value. |
Short-term investments | Short-term investments represent investments in loans and time deposits, which have original maturities of longer than 92 days and are repayable in less than twelve months, as well as investment in debt and equity securities. Deposits, loans and debt securities are carried at amortized cost as they are held to collect contractual cash flows in the form of payments of principal and interest. Assets in Sistema Capital trust management as well as mutual funds are carried at fair value through profit and loss (“FVTPL”), as this portfolio of assets is neither held to collect contractual cash flows nor held both to collect contractual cash flows and to sell financial assets. Short-term investments are presented net of allowance for expected credit losses (“ECL”). Loans to customers issued by MTS Bank are presented separately within Bank deposits and loans in the accompanying consolidated statements of financial position. |
Investments in associates and joint ventures | Associates are those entities where the Group exercises significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not equate to control or joint control over those policies. Associates are accounted for using the equity method, with exception of associates held by the Group’s venture capital subsidiary, MTS Ventures Limited. The Group elected to measure venture investments in associates at fair value through profit or loss in accordance with IFRS 9. Investments in associates are accounted for using the equity method are recognized at cost at the time of acquisition and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income. The carrying amount of the investment in such entities may include goodwill as the positive difference between the cost of the investment and Group’s proportionate share in the fair-values of the entity’s identifiable assets and liabilities. Joint ventures are joint arrangements whereby the parties that have joint control of the arrangement and have rights to the net assets of the arrangement. The Group recognizes its interest in a joint venture where it has joint control of the investment and accounts for that investment using the equity method. The Group presents its share in profits or losses in associates and joint ventures accounted for using the equity method within operating profit if those interests are viewed as part of Group’s core operations. As of December 31, 2021, MTS Belarus, Zelenaya Tochka, Factorin and Monumental Vision were considered as part of the Group’s core operating activity. Shares in profits and losses of other Group’s associates and joint ventures were presented as non-operating items. |
Other investments | Other investments consist primarily of long-term deposits, which are repayable in more than a year, loans, debt securities and equity holdings in private companies. Deposits, loans and notes are carried at amortized cost as they are held to collect contractual cash flows in the form of payments of principal and interest. Loans to customers issued by MTS Bank are presented separately within Bank deposits and loans to customers. Other investments are presented net of allowance for expected credit losses (ECL). |
Trade and other receivables | Trade and other receivables are carried at transaction price. The carrying value of all trade receivables is reduced by appropriate allowances for ECL. For trade receivables the Group applies a simplified approach and calculates ECL based on lifetime expected credit losses. For receivables from subscribers and dealers and partially for other trade receivables the allowance for ECL is computed using the provision matrix. The provision rates are based on days past due for groupings of various customer segments with similar loss patterns. The calculation reflects the probability-weighted outcome and all reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. Generally, receivables from subscribers are written-off if past due for more than 180 days on average based on category of subscriber. Receivables other than from subscribers are written-off upon the expiration of the limitation period or before based on results of internal investigations. MTS Group accounts for Receivables from handset sales financing as a part of current trade and other receivables and non-current other non-financial assets. These receivables are measured based on fair value basis using effective rate approach. Receivables from handset sales financing are written off against the allowance when deemed uncollectible, including by means of foreclosure on the provision. Write off of receivables takes place when the Group has no reasonable expectations of recovering the financial asset either entirely or a portion of it. |
Inventories | Inventories are stated at the lower of cost or net realizable value. Inventory cost is determined using the weighted average cost method. Handsets and accessories held for sale are expensed when sold. The Group regularly assesses its inventories for obsolete and slow-moving stock. |
Property, plant and equipment | Property, plant and equipment, including improvements, are stated at cost. Property, plant and equipment with a useful life of more than one year is capitalized at historical cost and depreciated on a straight-line basis over its expected useful life, as follows: Network and base station equipment: Network infrastructure 3-50 years Other 3-20 years Land and buildings: Buildings 7-99 years Leasehold improvements the term of the lease Office equipment, vehicles and other: Office equipment 2-7 years Vehicles 2-10 years Other 2-25 years The estimated useful lives and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. The gain or loss arising on the disposal of an item of property, plant and equipment is determined as the difference between any sale proceeds and the carrying amount of the asset and is recognised in the consolidated statement of profit or loss. Construction in progress and equipment held for installation is not depreciated until the constructed or installed asset is ready for its intended use. Maintenance and repair costs are expensed as incurred, while upgrades and improvements are capitalized. |
Goodwill | Goodwill represents an excess of consideration transferred plus the fair value of any non-controlling interest (“NCI”) in the acquiree at the acquisition date over the fair values of the identifiable net assets of the acquired entity. Goodwill is not amortized, but is tested for impairment (Note 22). Presentation of goodwill by reportable segments for the year ended December 31, 2020 was changed to reflect changes in reportable segments disclosed in Note 6. |
Other intangible assets | Other intangible assets primarily consist of billing, telecommunication, accounting and office software as well as numbering capacity, customer base and licenses. These assets are assets with finite useful lives. They are initially recognized at cost and amortized on a straight-line basis over their estimated useful lives. |
Borrowings | Group’s borrowings represent interest bearing bank loans and bonds issued in the capital markets. Borrowings are initially recorded at fair value plus transaction costs that are directly attributable to the issue of the financial liability and subsequently measured at amortized cost, using the effective interest rate method. |
Rights-of-use assets and lease obligations | The Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease agreements (including sub-lease and lease of intangible assets), which conveys the right to control the use of identified assets for a period of time in exchange for consideration, except for short-term leases (with a lease term of 12 months or less). For these leases, the Group recognizes the lease payments as operating expenses over the term of the lease. When identifying the lease, the Group uses practical expedient of IFRS 16 permitting the lessee not to separate the non-lease components of the contract and, instead, to account for any lease and associated non-lease components as a single arrangements. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the incremental borrowing rate of the Group. The incremental borrowing rate of the Group is determined based on the credit spreads of the Group debt instruments in relation to the zero-coupon yield curve for government securities. The lease payments include fixed payments, variable payments that depend on index or rate, amounts expected to be paid under residual value guarantee, the exercise price under a purchase option the Group is reasonably certain to exercise as well as early termination fees unless the Group is reasonably certain not to terminate earlier. Variable payments that depend on external factors (such as sale volume of a particular retail store) are expensed as incurred. Lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. A corresponding adjustment is made to the carrying amount of the right-of-use assets, or is recorded in profit or loss if the carrying amount of right-of-use asset had been reduced to zero. Right-of-use assets are initially measured at cost, which is the initial amount of lease liability adjusted for any lease payments made at or before the commencement date, plus any direct costs incurred and an estimate of costs to dismantle, remove or restore the underlying asset less any lease incentives received. Right-of-use assets are subsequently amortized on a straight-line basis over the expected lease term. The lease term corresponds to the non-cancellable period of each contract except in cases where the Group is reasonably certain of exercising renewal or termination options. When assessing the lease term, the Group considers all facts and circumstances that create an economic incentive for the Group to exercise the option to extend the lease, such as useful life of the asset located on the leased site, sites replacement statistics, sequence of technology change, profitability of our retail stores as well as costs to terminate or enter into lease contracts. |
Provisions | Provisions |
Provision for decommissioning and restoration | Provision for decommissioning and restoration |
Derivative instruments activities | Derivative instruments activities Gains and losses from changes in the fair value of derivative instruments are recorded immediately in profit or loss. Assets and liabilities related to multiple derivative contracts with one counterparty are not offset by the Group. |
Liability under put option agreement | Liability under put option agreement |
Netting | Netting |
Fair value of financial instruments | Fair value of financial instruments Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities; Level 3 – No observable pricing inputs in the market. Financial assets and financial liabilities are classified in the three-tier hierarchy based on the lowest level of input that is significant to the fair value measurements. The Group’s assessment of the significance of a particular input to the fair value measurements requires judgment which may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS | |
Summary of ownership interests in significant subsidiaries | Accounting December 31, December 31, method 2021 2020 RTC Consolidated 100.0 % 100.0 % MTS Bank Consolidated 99.9 % 99.9 % MGTS Group Consolidated 94.7 % 94.7 % Multiregional TransitTelecom (Note 5) Consolidated 100.0 % — MTS Armenia Consolidated 100.0 % 100.0 % Nvision Czech Republic Consolidated 100.0 % 100.0 % MDTZK LLC (Ticketland) Consolidated 100.0 % 100.0 % Kulturnaya Sluzhba (Ponominalu) Consolidated 100.0 % 100.0 % Sputnikovoe TV Consolidated 100.0 % 100.0 % IT Grad (Note 5) Consolidated 100.0 % 100.0 % MTS Avto (former Stopol) (Note 5) Consolidated 100.0 % 100.0 % "Zelenaya Tochka" Group – Achemar Holdings Ltd (Note 5) (1) Consolidated 100.0 % 51.0 % Oblachny Retail LLC Consolidated 100.0 % 50.8 % MTS Media Consolidated 100.0 % 100.0 % Navigation Information Systems Group Consolidated 94.7 % 94.7 % MTS Didgital (former MTS IT) Consolidated 100.0 % 100.0 % Kinopolis (Note 5) Consolidated 100.0 % 100.0 % Sistema Capital (Note 5) (1) Consolidated 100.0 % 30.0 % Stream Consolidated 100.0 % 100.0 % MTS Turkmenistan Consolidated 100.0 % 100.0 % MTS Artificial Intelligence Consolidated 100.0 % 100.0 % MWS Consolidated 100.0 % — Energy Group (Note 5) Consolidated 100.0 % — Dega Consolidated 100.0 % 100.0 % Stream Digital Consolidated 100.0 % 100.0 % Bastion Consolidated 100.0 % 100.0 % MTS International Funding Limited (2) Consolidated SE SE MTS Belarus (Note 16) Equity 49.0 % 49.0 % (1) Consolidated since 2021, accounted for as an equity investment in 2020 (2) A company organized and existing as a private limited company under the laws of Ireland. The Group does not have any equity in MTS International. It was established for the purpose of raising capital through the issuance of debt securities on the Irish Stock Exchange followed by transferring the proceeds through a loan facility to the Group. In 2010 and 2013, MTS International issued USD 750 million 8.625% notes due in 2020 (fully repaid in June 2020) and USD 500 million 5.0% notes due in 2023, respectively (Note 24). The notes are guaranteed by MTS PJSC in the event of default. MTS International does not perform any other activities except those required for notes servicing. The Group bears all costs incurred by MTS International in connection with the notes’ maintenance activities. Accordingly, the Group concluded that it exercises control over the entity. |
Schedule of standards, interpretations and amendments adopted | Amendments to IFRS9, IAS39, IFRS7, IFRS 4 and IFRS16 Interest Rate Benchmark Reform (Phase 2) Amendments to IFRS16 Covid-19 Related Rent Concessions Amendments to IFRS 1 and IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction (1) (1) |
Schedule of not applied new and revised IFRSs that have been issued but not yet effective | Amendments to IAS 37 Onerous contracts – Cost of fulfilling a contract (1) Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use (1) Amendments to IFRS 3 Reference to Conceptual Framework (1) Amendments to IFRS Annual Improvements to IFRSs (2018-2020 Cycle) (1) Amendments to IAS 1 Classification of Liabilities as Current or Non-Current (2) IFRS 17 and amendments to IFRS17 Insurance Contracts (2) Amendments to IAS 8 Definition of Accounting Estimate (2) Amendments to IAS 1 and IFRS Practice Statement 2 Disclosure of Accounting Policy (2) Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (3) (1) Effective for annual periods beginning on or after January 1, 2022, with earlier application permitted. (2) Effective for annual periods beginning on or after January 1, 2023, with earlier application permitted. (3) The effective date for these amendments was deferred indefinitely. Early adoption continues to be permitted. |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of business combinations | |
Schedule of assets and liabilities pertaining to the disposal group and reconciliation of the loss on disposal | Current assents 282 Non-current assets 51 Total assets 333 Current liabilities (275) Non-current liabilities (36) Total liabilities (311) Accumulated other comprehensive income 83 Total consideration (52) Loss on disposal 53 |
Schedule of business acquisitions proforma financial data | 2021 MTT, Zelenaya Tochka, GreenBush, Credit 2020 2019 Consulting, RIKT, Kinopolis, Pro forma: Sistema Capital STOPOL Narodnoje Net revenue 537,867 495,273 476,257 Net profit fot the year 64,399 62,079 55,101 |
Schedule of business acquisitions actual information financial data | 2021 MTT, Zelenaya Tochka, GreenBush, Credit 2020 2019 Consulting, RIKT, Kinopolis, Sistema Capital STOPOL Narodnoje Net revenue 5,341 355 238 Net profit/(loss) for the year 25 25 (15) |
Vision Labs | |
Disclosure of business combinations | |
Schedule of fair values of the identifiable assets and liabilities on acquisition date | Goodwill 3,800 (1) Customer base 1,726 (2) Other intangible assets 1,434 Property, plant and equipment 86 Other non-current assets 53 Current assets 266 Cash and cash equivalents 211 Current liabilities (447) Non‑current liabilities (606) Total consideration 6,523 Including: Fair value of contingent consideration 621 Fair value of stake in Group’s subsidiary 659 Cash payable 5,243 (1) The provisional goodwill is attributable to the expected synergies arising from the acquisition and allocated to the “Artificial Intelligence” operating segment. (2) Amortized over the term of up to 7 years . |
Companies acquired in 2021 | |
Disclosure of business combinations | |
Schedule of purchase price allocation | Zelenaya Credit MTT Tochka GreenBush Consulting Goodwill 2,984 (1) 1,353 (1) - 46 (2) Customer base 827 (3) 320 (4) — — Trademark 530 12 — — Other intangible assets 590 24 1 4 Property, plant and equipment 588 623 5,171 — Other non-current assets 254 43 17 — Current assets 3,056 1,417 84 18 Cash and cash equivalents 340 152 9 3 Current liabilities (2,656) (725) (26) (11) Non‑current liabilities (715) (118) (56) — Total consideration 5,798 3,101 5,200 60 Including: Fair value of contingent consideration — — — 60 Fair value of offset financial assets 1,958 — — — Fair value of previously held interest — 1,582 — — Deferred payment 160 7 — — Cash paid or payable 3,680 1,512 5,200 — (1) The provisional goodwill is attributable to the expected synergies arising from the acquisition and allocated to the “Telecom” operating segment. (2) The provisional goodwill is attributable to the expected synergies arising from the acquisition and allocated to the “Fintech” operating segment. (3) Amortized over the term of up to 3 years . (4) Amortized over the term of 5 years . |
Schedule of details of acquisitions of subsidiaries | Consideration paid net of cash Assets acquired Liabilities Acquired company acquired* Cash acquired other than cash assumed Sistema Capital 3,474 26 1,185 90 * |
Companies acquired in 2020 | |
Disclosure of business combinations | |
Schedule of purchase price allocation | Stopol Goodwill (1) 282 Other non-current assets 2 Current assets 230 Cash and cash equivalents 69 Current liabilities (262) Total consideration 321 Including: Fair value of contingent consideration 9 Cash paid 312 (1) The goodwill is attributable to the expected synergies resulted from the acquisition and allocated to the “Stopol” operating segment within “Other” category in reportable segments. |
Companies acquired in 2019 | |
Disclosure of business combinations | |
Schedule of fair values of the identifiable assets and liabilities on acquisition date | Goodwill (1) 105 Other intangible assets (2) 172 Property, plant and equipment 118 Trade and other receivables 12 Cash and cash equivalents 6 Other current assets 9 Other non-current assets 14 Current liabilities (37) Non‑current liabilities (39) Consideration transferred (in cash) 360 (1) The goodwill is attributable to the expected synergies resulted from the acquisition and allocated to the “Telecom” operating segment. (2) Amortized over the average term of 12 years . |
Schedule of liabilities and indemnification assets in respect to deferred payments | Deferred payments on Zelenaya Credit Indemnification asset/ acquisitions IT-Grad Stopol Tochka Consulting MTT (Liability on deferred payment/ prior to contingent contingent deferred contingent deferred contingent consideration) 2019 consideration consideration payment consideration payment January 1, 2019 118 (907) — — — — Measurement period adjustment — 66 — — — — Reversal of indemnity (259) — — — — — Revaluation (22) (66) — — — — Payment 163 — — — — — December 31, 2019 — (907) — — — — Initial recognition of deferred payment/contingent consideration — — (40) — — — Less: Provision for tax liabilities related to pre-acquisition period — — 26 — — — Reversal of tax provision — — (10) — — — December 31, 2020 — (907) (24) — — — Initial recognition of deferred payment/contingent consideration — — — (7) (60) (160) Less: Provision for tax liabilities related to pre-acquisition period — — 3 — — — Revaluation — 542 — — (1) — Payment — 365 — 7 — — December 31, 2021 — — (21) — (61) (160) |
Schedule of details of acquisitions of subsidiaries | Consideration paid Assets acquired Acquired company net of cash acquired* Cash acquired other than cash Liabilities assumed Kinopolis 2,030 12 1,017 58 Narodnoje 329 — 102 — Total effect of acquisitions under common control 2,359 12 1,119 58 * |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
Schedule of financial information by reportable segments | Year ended December 31, 2021: Total of reportable HQ and Telecom Fintech segments Other elimination Consolidated Revenue External customers 444,175 46,836 491,011 43,296 96 534,403 Intersegment 4,138 2,771 6,909 19,527 (26,436) — Total revenue 448,313 49,607 497,920 62,823 (26,340) 534,403 OIBDA 204,194 8,834 213,028 24,700 (8,371) 229,357 Depreciation and amortization (111,088) Impairment of non-current assets 10 Operating profit 118,279 Year ended December 31, 2020: Total of reportable HQ and Telecom Fintech segments Other elimination Consolidated Revenue External customers 425,059 33,773 458,832 36,002 92 494,926 Intersegment 4,260 2,449 6,709 13,130 (19,839) — Total revenue 429,319 36,222 465,541 49,132 (19,747) 494,926 OIBDA 200,911 3,862 204,773 18,026 (7,649) 215,150 Depreciation and amortization (100,234) Impairment of non-current assets (2,023) Operating profit 112,893 Year ended December 31, 2019: Total of reportable HQ and Telecom Fintech segments Other elimination Consolidated Revenue External customers 381,697 29,304 411,001 59,510 94 470,605 Intersegment 9,406 1,881 11,287 12,063 (23,350) — Total revenue 391,103 31,185 422,288 71,573 (23,256) 470,605 OIBDA 174,010 4,574 178,584 39,243 (6,203) 211,624 Depreciation and amortization (96,195) Impairment of non-current assets 148 Operating profit 115,577 |
Schedule of financial information by geographic areas | Revenue 2021 2020 2019 Russia 520,671 481,536 459,415 Other 13,732 13,390 11,190 Total revenue 534,403 494,926 470,605 December 31, Non-current assets (1) 2021 2020 Russia 442,655 401,743 Other 11,546 11,205 Total non-current assets: 454,201 412,948 (1) Comprises property, plant and equipment, goodwill and other intangible assets. |
Schedule of disaggregation of revenue | Total of reportable HQ and Year ended December 31, 2021: Telecom Fintech segments Other elimination Consolidated Revenue Connectivity services 375,718 — 375,718 29,810 96 405,624 Sales of goods 67,392 — 67,392 9,334 — 76,726 Fintech services — 46,836 46,836 — — 46,836 Other services 1,065 — 1,065 4,152 — 5,217 External Customers 444,175 46,836 491,011 43,296 96 534,403 Intersegment 4,138 2,771 6,909 19,527 (26,436) — Total revenue 448,313 49,607 497,920 62,823 (26,340) 534,403 Thereof: Recognised over time 376,783 27,516 404,299 33,962 96 438,357 Recognised at point of time 67,392 19,320 86,712 9,334 — 96,046 444,175 46,836 491,011 43,296 96 534,403 Total of reportable HQ and Year ended December 31, 2020: Telecom Fintech segments Other elimination Consolidated Revenue Connectivity services 363,131 — 363,131 24,894 92 388,117 Sales of goods 61,495 — 61,495 7,983 — 69,478 Fintech services — 33,773 33,773 — — 33,773 Other services 433 — 433 3,125 — 3,558 External Customers 425,059 33,773 458,832 36,002 92 494,926 Intersegment 4,260 2,449 6,709 13,130 (19,839) — Total revenue 429,319 36,222 465,541 49,132 (19,747) 494,926 Thereof: Recognised over time 363,564 24,367 387,931 28,019 92 416,042 Recognised at point of time 61,495 9,406 70,901 7,983 — 78,884 425,059 33,773 458,832 36,002 92 494,926 Total of reportable HQ and Year ended December 31, 2019: Telecom Fintech segments Other elimination Consolidated Revenue Connectivity services 323,551 — 323,551 49,735 94 373,380 Sales of goods 57,677 — 57,677 6,450 — 64,127 Fintech services — 29,304 29,304 — — 29,304 Other services 469 — 469 3,325 — 3,794 External Customers 381,697 29,304 411,001 59,510 94 470,605 Intersegment 9,406 1,881 11,287 12,063 (23,350) — Total revenue 391,103 31,185 422,288 71,573 (23,256) 470,605 Thereof: Recognised over time 324,020 21,996 346,016 53,060 94 399,170 Recognised at point of time 57,677 7,308 64,985 6,450 — 71,435 381,697 29,304 411,001 59,510 94 470,605 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Schedule of receivables, contract assets and contract liabilities from contracts with customer | December 31, 2021 2020 Receivables 32,361 31,452 Contract assets 189 53 Total assets 32,550 31,505 Less current portion (20,638) (29,342) Total non-current assets 11,912 2,163 Contract liabilities: Mobile and fixed telecommunication services (22,064) (20,714) Other services (1,083) (694) Loyalty programme (451) (434) Total liabilities (23,598) (21,842) Less current portion 22,621 21,125 Total non-current liabilities (977) (717) |
Schedule of changes in the contract liabilities | 2021 2020 Balance as of January 1 (21,842) (21,307) Revenue recognised that was included in the contract liability balance at the beginning of the period 18,712 17,531 Increase due to cash received, excluding amount recognised as revenue during the period (20,468) (18,438) Disposal of Nvision Group — 372 Balance as of December 31 (23,598) (21,842) |
Schedule of revenue related to performance obligations and transaction price that are unsatisfied | 2022 2023-2027 2028-2032 Total Connectivity services 21,087 901 76 22,064 Other services 1,083 — — 1,083 Loyalty programme 451 — — 451 2022 2023-2027 2028-2032 After 2032 Total Connectivity services 312 519 195 124 1,150 Integration services 111 178 44 — 333 |
Schedule of capitalized cost to obtain and fulfill contracts | December 31, 2021 2020 Cost to obtain contracts Gross book value 14,633 14,268 Accumulated amortization (6,736) (6,600) Cost to fulfill contracts Gross book value 5,240 4,081 Accumulated amortization (2,279) (1,628) |
SELLING, GENERAL AND ADMINIST_2
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | |
Schedule of selling, general and administrative expenses | 2021 2020 2019 Salaries and social contributions 54,285 48,865 50,451 Advertising and marketing expenses 12,539 10,652 10,930 General and administrative expenses 8,085 7,526 7,653 Universal service fund 3,813 3,670 3,587 Consulting expenses 3,626 3,418 2,626 Cash collection commission 3,533 3,645 3,504 Dealers commission 3,434 3,385 3,081 Utilities and maintenance 2,550 2,255 2,809 Taxes other than income tax 1,062 1,845 2,486 Other personnel expenses 1,857 1,546 1,664 Other 1,455 1,176 1,142 Total 96,239 87,983 89,933 |
FINANCE INCOME AND COSTS (Table
FINANCE INCOME AND COSTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FINANCE INCOME AND COSTS | |
Schedule of finance income and costs | 2021 2020 2019 Interest expense: – Loans and notes 29,432 28,174 30,105 – Amortization of debt issuance costs 109 97 489 – Lease obligations 11,820 12,277 13,416 – Provisions: unwinding of discount 165 138 113 Total interest expense 41,526 40,686 44,123 Loss on financial instruments — 373 780 Other finance costs 143 85 151 Total finance costs 41,669 41,144 45,054 Less: amounts capitalized on qualifying assets (1) (533) (426) (550) Debt modification/derecognition and other loss 216 1,366 2,862 Finance costs 41,352 42,084 47,366 Finance income on loans and receivables: – Interest income on bank deposits 1,468 2,282 3,318 – Interest income on loans issued 52 17 91 – Other finance income 998 1,138 943 Finance income 2,518 3,437 4,352 Net finance costs 38,834 38,647 43,014 (1) The annual weighted average capitalization rates of 6.8 %, 6.9 % and 8.1 % were used to determine the amount of capitalized interest for the years ended December 31, 2021, 2020 and 2019, respectively. |
OTHER NON-OPERATING (INCOME)__2
OTHER NON-OPERATING (INCOME)/EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER NON-OPERATING (INCOME)/EXPENSES | |
Schedule of components of other non-operating (income)/expenses | Other non-operating (income)/expenses for the years ended December 31, 2021, 2020 and 2019 comprised the following: 2021 2020 2019 Net forex exchange (gain) / loss 560 10,380 (5,266) Loss/(gain) arising on derivatives 345 (13,443) 8,297 Net gain/(loss) arising on financial assets measured at FVTPL (139) (1,893) 528 Net gain/(loss) arising on financial liabilities measured at FVTPL — (53) 1,197 Impairment of investments and loans given — 1,392 616 Other (342) 553 2,449 Total 424 (3,064) 7,821 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Preludium B.V. | |
Disposal | |
Schedule of carrying amounts of assets and liabilities pertaining to the discontinued operation and reconciliation of the loss on disposal | As of December 3, 2019, the carrying amounts of assets and liabilities pertaining to the discontinued operation and reconciliation of the loss on disposal were as follows: Property, plant and equipment 26,037 Right-of-use assets 8,175 Intangible assets 18,124 Goodwill 114 Other non-current assets 1,534 Other current assets 10,760 Cash and cash equivalents 4,181 Non-current liabilities (9,009) Current liabilities (17,979) Accumulated other comprehensive loss 7,948 Total consideration (44,386) In the form of: Cash and cash equivalents (USD 645 million) (41,567) Deferred consideration (USD 12 million) (774) Fair value of contingent consideration (variable earn-out) as of December 3, 2019 (USD 32 million) (2,045) Loss on disposal 5,499 Net cash inflow arising on disposal: 37,386 Cash consideration received 41,567 Less: cash and cash equivalents disposed of (4,181) |
Schedule of discontinued operations included in the consolidated statements of profit or loss and cash flows | For the year ended December 31, 2021 2020 2019 Revenue — — 36,675 Expenses — — (28,564) Profit before tax — — 8,111 Attributable tax expense — — (2,018) Profit for the period — — 6,093 Profit/(loss) on disposal — 2,101 (5,499) Currency revaluation gain/(loss) on deferred consideration — 154 (30) Earn-out revaluation - fair value measurement 377 645 48 Earn-out revaluation - Currency revaluation gain/(loss) 93 (27) (80) Net income attributable to discontinued operations 470 2,873 532 Cash flows from (used in) discontinued operation were presented as follows: For the year ended December 31, 2021 2020 2019 Net cash provided by operating activities — — 17,343 Net cash provided by/(used in) investing activities 1,234 2,998 (13,046) Net cash used in financing activities — — (1,114) |
NVision Group | |
Disposal | |
Schedule of carrying amounts of assets and liabilities pertaining to the discontinued operation and reconciliation of the loss on disposal | As of October 30, 2020, the carrying amounts of discontinued operation net assets and reconciliation of the loss on disposal were as follows: Property, plant and equipment 95 Intangible assets 245 Other non-current assets 220 Other current assets 2,912 Cash and cash equivalents 285 Non-current liabilities (98) Current liabilities (3,281) Accumulated other comprehensive loss 3 Total consideration (369) Satisfied by: Cash and cash equivalents (369) Loss on disposal* 12 Net cash inflow arising on disposal: 84 Cash consideration received 369 Less: cash and cash equivalents disposed of (285) * Included in additional paid-in capital in consolidated statement of changes in shareholders’ equity, analogically to the purchase of JSC “Nvision Group” from Sistema in 2015 |
Schedule of discontinued operations included in the consolidated statements of profit or loss and cash flows | Year ended December 31, 2020 2019 Revenue 10,051 12,898 Expenses (11,305) (14,263) Loss before tax (1,254) (1,365) Attributable tax expense (1,003) (83) Loss for the period (2,257) (1,448) Net loss attributable to discontinued operations (2,257) (1,448) Cash flows from (used in) discontinued operation are presented as follows: For the year ended December 31, 2020 2019 Net cash used in by operating activities (1,466) (55) Net cash provided by investing activities 664 347 Net cash provided by/(used in) financing activities 748 (372) |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAX | |
Schedule of Significant Components of income tax expense | 2021 2020 2019 Current income tax charge 20,057 15,170 20,757 Prior period tax adjustments (133) (509) (90) Total current income tax 19,924 14,661 20,667 Deferred tax (4,521) 1,465 (5,000) Income tax expense on continuing operations 15,403 16,126 15,667 |
Reconciliation of the effective income tax rate to the statutory income tax rate | 2021 2020 2019 Statutory income tax rate for the year 20.0 % 20.0 % 20.0 % Adjustments: Expenses not deductible for tax purposes 0.1 1.3 2.1 Prior periods tax effects (0.2) (0.7) (0.1) Different tax rate of subsidiaries (0.8) (0.8) (0.4) Withholding tax on distributed and undistributed profits 1.6 1.5 1.9 Change in fair value of derivative financial instruments — — 0.2 Changes in recognized deferred tax assets (0.9) (0.1) (0.5) Other (0.4) (0.4) (0.2) Effective income tax rate 19.4 % 20.8 % 23.0 % |
Schedule of deferred income tax assets and liabilities | 2021 2020 Deferred tax assets 11,683 8,778 Deferred tax liabilities (17,901) (19,191) Net deferred tax liabilities (6,218) (10,413) |
Schedule of movements in deferred tax assets and liabilities | Recognised in other December 31, Recognised in compre-hensive Effect of December 31, 2020 profit / loss income disposals 2021 Assets / (liabilities) arising from tax effect of: Property, plant and equipment (18,250) (1,352) 32 (110) (19,680) Other intangible assets (6,314) 998 — (142) (5,458) Potential distributions from/ to Group’s subsidiaries/ associates and joint ventures (2,506) 166 (86) — (2,426) Licenses (1,699) 24 — — (1,675) Customer base (470) 107 — (229) (592) Capitalization of cost to obtain and fulfill contracts (1,668) (162) — — (1,830) Accrued expenses for services 7,158 588 (1) 69 7,814 Write-down of inventories 413 (178) — 3 238 Allowance for ECL 2,713 533 3 5 3,254 Lease obligations 29,910 1,181 (1) 3 31,093 Right-of-use assets (25,686) (392) 2 — (26,076) Loss carryforward 3,961 1,801 — 95 5,857 Contract liabilities 1,430 176 — — 1,606 Debt modification (123) 50 — — (73) Hedge and other 718 981 31 — 1,730 Net deferred tax liability (10,413) 4,521 (20) (306) (6,218) \ Recognised in other December 31, Recognised in compre-hensive Effect of December 31, 2019 profit / loss income acquisitions 2020 Assets / (liabilities) arising from tax effect of: Property, plant and equipment (17,954) (318) 19 3 (18,250) Other intangible assets (6,564) 314 — (64) (6,314) Potential distributions from/ to Group’s subsidiaries/ associates and joint ventures (2,430) (42) (34) — (2,506) Licenses (1,739) 47 (7) — (1,699) Customer base (576) 106 — — (470) Capitalization of cost to obtain and fulfill contracts (1,448) (220) — — (1,668) Accrued expenses for services 7,929 (710) 5 (66) 7,158 Write-down of inventories 681 (211) 10 (67) 413 Allowance for ECL 2,947 (112) 3 (125) 2,713 Lease obligations (1) 30,953 (1,052) 12 (3) 29,910 Right-of-use assets (1) (27,433) 1,761 (14) — (25,686) Loss carryforward 4,634 56 — (729) 3,961 Contract liabilities 1,230 203 — (3) 1,430 Debt modification (433) 310 — — (123) Hedge and other 2,312 (1,594) — — 718 Net deferred tax liability (7,891) (1,462) (6) (1,054) (10,413) (1) Previously, the deferred tax on a lease under IFRS 16 was accounted under the net approach, the changes do not affect the total amount of deferred tax. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER SHARE | |
Schedule of computation of earnings per share | 2021 2020 2019 Numerator: Profit for the year from continuing operations attributable to the owners of the company 63,003 60,796 51,713 Profit for the year from discontinued operations attributable to the owners of the company 470 616 2,528 Denominator, in thousands: Weighted-average ordinary shares outstanding 1,693,244 1,760,468 1,780,935 Employee stock options 8,541 1,310 2,682 Weighted-average diluted shares outstanding 1,701,785 1,761,778 1,783,617 Earnings per share – basic, Russian Rubles 37.49 34.88 30.46 Basic EPS from continuing operations 37.21 34.53 29.04 Basic EPS from discontinued operations 0.28 0.35 1.42 Earnings per share – diluted, Russian Rubles 37.30 34.86 30.41 Diluted EPS from continuing operations 37.02 34.51 28.99 Diluted EPS from discontinued operations 0.28 0.35 1.42 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CASH AND CASH EQUIVALENTS | |
Schedule of cash and cash equivalents | December 31, 2021 2020 Cash and cash equivalents at banks and on hand in: Russian Rubles 17,911 39,076 US Dollars 1,766 10,597 Euro 2,899 6,433 Turkmenian Manat 367 431 Other 816 959 Short-term deposits with an original maturity of less than 92 days: Russian Rubles 16,594 27,857 Other 237 52 Total cash and cash equivalents 40,590 85,405 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM INVESTMENTS | |
Schedule of short-term investments | December 31, Category 2021 2020 Mutual funds (Notes 28) At FVTPL 10,719 10,699 Assets in Sistema-Capital trust management (Notes 28) At FVTPL 10,374 10,313 Notes / loans At amortized cost 6,383 1,007 Deposits At amortized cost 1,499 1,415 Short-term investments, gross 28,975 23,434 Allowance for ECL (3) — Total short-term investments 28,972 23,434 |
INVESTMENTS IN ASSOCIATES AND_2
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments in associates and joint ventures | |
Schedule of investments in venture capital associates | December 31, Fair value December 31, 2021 adjustment Investment 2020 Total investments in associates measured at fair value through profit or loss 305 — 305 — |
Investments in individually insignificant joint ventures | |
Investments in associates and joint ventures | |
Schedule of the composition of the Group's share of loss/(income) of associate | Year ended December 31, 2021 2020 Loss for the year 114 3 The Group’s share of the loss of the joint venture for the year 32 17 Other comprehensive income for the year — — Total comprehensive income for the year 114 3 Gain on remeasurement of previously held interest upon acquisition (415) — Compensation of losses (96) — The Group’s share of total comprehensive (income)/loss of the joint venture for the year (479) 17 |
MTS Belarus | |
Investments in associates and joint ventures | |
Schedule of reconciliation of summarized financial information to the carrying amount of the Group's interest in associate | December 31, December 31, 2021 2020 Assets Non-current assets 19,030 20,008 Current assets 15,386 12,705 Liabilities Non-current liabilities (9,062) (11,257) Current liabilities (12,568) (10,999) Total identifiable net assets 12,786 10,457 The Group’s share in associate 49 % 49 % The Group’s share of identifiable net assets 6,265 5,124 Carrying amount of the Group’s interest 6,265 5,124 |
Schedule of the composition of the Group's share of loss/(income) of associate | Year ended December 31, 2021 2020 2019 Revenue 39,383 36,121 32,593 Profit for the year (10,379) (10,267) (9,354) The Group’s share of the profit of the associate for the year (5,086) (5,031) (4,583) Other comprehensive income/(loss) for the year (183) 397 842 Total comprehensive income for the year (10,562) (9,870) (8,512) The Group’s share of total comprehensive income of the associate for the year (5,175) (4,836) (4,171) Dividends received 4,034 4,212 3,821 |
Investments in Ozon Holdings Ltd and other individually insignificant associates and joint venture | |
Investments in associates and joint ventures | |
Schedule of investments in associates and joint ventures | Country of December 31, December 31, operations Operating activity 2021 2020 MTS Belarus Belarus telecommunications 6,265 5,124 Zelenaya Tochka Russia telecommunications 141 1,260 YouDo Russia classifieds 705 724 Sistema-Rentnaya Nedvizhimost Russia property investments mutual fund — 636 Other unquoted companies Russia 1,319 811 Total investments in associates accounted for using the equity method 8,430 8,555 Other unquoted companies accounted for at fair value through profit or loss Russia 305 — Total investments in associates 8,735 8,555 |
Schedule of recognized gain on sale included in the non-operating share of the income of the associates | 2019 Proceeds from disposal 7,902 Less: carrying amount of investment on the date of disposal (4,065) Gain recognized* 3,837 * A current tax expense of RUB 420 million is attributable to the aforementioned gain. |
Investments in individually insignificant associates and joint ventures | |
Investments in associates and joint ventures | |
Schedule of the composition of the Group's share of loss/(income) of associate | Year ended December 31, 2021 2020 2019 (Profit)/loss for the year (856) (1,048) 2,448 The Group’s share of the (profit)/loss of the associates and joint ventures for the year (181) (273) 341 Other comprehensive income for the year — — — Total comprehensive (income)/loss for the year (856) (1,048) 2,448 The Group’s share of total comprehensive (income)/loss of the associate for the year (181) (273) 341 |
OTHER INVESTMENTS (Tables)
OTHER INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER INVESTMENTS | |
Schedule of other investments | December 31, Category 2021 2020 Debt securities At amortized cost 2,810 8,764 Investments in equity FVPL 1,228 400 Loans and unquoted notes At amortized cost 555 328 Other investments (Gross) 4,593 9,492 Allowance for ECL (2) (4) Total other investments 4,591 9,488 |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade and other receivables [abstract] | |
Schedule of trade and other receivables | December 31, 2021 2020 Subscribers 15,240 12,704 Receivables from handset sales financing 12,161 15,785 Other trade receivables 6,213 4,954 Receivables from the sharing agreement 2,164 73 Interconnect 1,640 1,794 Integration services 1,584 1,512 Bonuses from suppliers 892 342 Roaming 800 1,072 Factoring 282 — Dealers 161 158 Other receivables 2,194 1,260 Allowance for ECL (3,536) (4,623) Trade and other receivables, total 39,795 35,031 Less non-current portion (1,898) (2,163) Trade and other receivables, current 37,897 32,868 |
Analysis of the age of trade and other accounts receivables | The analysis of the age of trade and other accounts receivables and the respective allowance for ECL as of December 31, 2021: Receivables from subscribers and dealers and other trade Loss allowance receivables assessed for Weighted- (based on impairement based on provision average Gross carrying provision matrix loss rate amount matrix) Credit-impaired Current 1 % 2,560 (27) No 1 - 30 days past due 3 % 10,848 (332) No 31 - 60 days past due 32 % 583 (189) No 60 - 90 days past due 45 % 355 (161) No More than 90 days past due 78 % 1,055 (818) Yes Total 10 % 15,401 (1,527) Receivables from the sharing agreement, interconnect, integration services and other Weighted- Loss allowance receivables based on individual average Gross carrying (individually approach loss rate amount assessed) Credit-impaired Current 2 % 9,407 (193) No 1 - 30 days past due 1 % 2,219 (8) No 31 - 60 days past due 1 % 1,119 (16) No 60 - 90 days past due 5 % 624 (31) No More than 90 days past due 36 % 2,400 (865) Yes Total 7 % 15,769 (1,113) Loss allowance Weighted- (based on Receivables from handset sales average Gross carrying provision financing loss rate amount matrix) Credit-impaired Current 2 % 10,948 (180) No 1 - 30 days past due 12 % 289 (34) No 31 - 60 days past due 47 % 94 (45) No 60 - 90 days past due 58 % 74 (43) No More than 90 days past due 78 % 756 (594) Yes Total 7 % 12,161 (896) The analysis of the age of trade and other accounts receivables and the respective allowance for ECL as of December 31, 2020: Receivables from subscribers and dealers and other trade Loss allowance receivables assessed for Weighted- (based on impairment based on provision average Gross carrying provision matrix loss rate amount matrix) Credit-impaired Current 3 % 2,087 (62) No 1 - 30 days past due 5 % 9,029 (478) No 31 - 60 days past due 41 % 466 (190) No 60 - 90 days past due 59 % 384 (225) No More than 90 days past due 81 % 896 (727) Yes Total 13 % 12,862 (1,682) Receivables from the sharing agreement, interconnect, integration services and other Weighted- Loss allowance receivables based on individual average Gross carrying (individually approach loss rate amount assessed) Credit-impaired Current 3 % 7,966 (227) No 1 - 30 days past due 1 % 825 (11) No 31 - 60 days past due 2 % 459 (11) No 60 - 90 days past due 10 % 227 (23) No More than 90 days past due 69 % 1,530 (1,069) Yes Total 12 % 11,007 (1,341) Loss allowance Weighted- (based on Receivables from handset sales average Gross carrying provision financing loss rate amount matrix) Credit-impaired Current 2 % 13,943 (245) No 1 - 30 days past due 15 % 331 (50) No 31 - 60 days past due 53 % 102 (54) No 60 - 90 days past due 65 % 65 (43) No More than 90 days past due 90 % 1,344 (1,208) Yes Total 10 % 15,785 (1,600) |
Schedule of changes in the allowance for expected credit losses | 2021 2020 2019 Balance, beginning of the year (4,623) (4,203) (4,318) Allowance for ECL (1,135) (3,382) (4,290) Accounts receivable written off 2,232 2,719 4,276 Disposal/(Acquisition) of subsidiaries (10) 243 129 Balance, end of the year (3,536) (4,623) (4,203) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | |
Schedule of inventory and spare parts | December 31, 2021 2020 Handsets and accessories 15,201 12,827 Advertising and other materials 1,934 964 Spare parts for telecommunication equipment 180 110 SIM cards and prepaid phone cards 853 726 TV equipment for resale 449 425 Software and equipment for installation and resale 364 152 Total inventories 18,981 15,204 |
Summary of cost of goods | 2021 2020 2019 Amount of inventories recognized as an expense 70,788 62,587 56,761 Inventory obsolescence provision 1,817 1,465 2,564 Reversal of obsolescence provision (361) (570) (453) Total cost of goods 72,244 63,482 58,872 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT | |
Summary of property, plant and equipment expected useful lives | Network and base station equipment: Network infrastructure 3-50 years Other 3-20 years Land and buildings: Buildings 7-99 years Leasehold improvements the term of the lease Office equipment, vehicles and other: Office equipment 2-7 years Vehicles 2-10 years Other 2-25 years |
Schedule of net book value of property, plant and equipment | Balances of cost, accumulated depreciation, net book value as of December 31, 2021, 2020 and 2019 and movements of property, plant and equipment for the year ended December 31, 2021, 2020 and 2019 were as follows: Construction Office in progress Network and equipment, and base station Land and vehicles and equipment for equipment buildings other installation Total Cost January 1, 2019 593,133 33,834 54,287 25,457 706,711 Additions 4,162 39 1,117 64,398 69,716 Transferred into use 51,130 1,803 12,919 (65,852) — Arising on business combinations 194 27 73 4 298 Transfer to assets held for sale (1,573) 555 — — (1,018) Disposal (26,870) (428) (3,091) (186) (30,575) Disposal of VF Ukraine (Note 11) (62,196) (2,128) (6,966) (2,060) (73,350) Other 730 1,042 (1,125) 80 727 Foreign exchange differences 1,889 (188) 55 55 1,811 December 31,2019 560,599 34,556 57,269 21,896 674,320 Additions (173) 434 729 74,032 75,022 Transferred into use 53,005 1,317 12,286 (66,608) — Arising on business combinations 578 4 6 — 588 Disposal of NVISION GROUP (Note 11) — — (314) (18) (332) Transfer to assets held for sale (2,890) (475) (34) (3) (3,402) Disposal (38,293) (447) (4,405) (255) (43,400) Other (4) 675 30 35 736 Foreign exchange differences 2,286 495 520 74 3,375 December 31,2020 575,108 36,559 66,087 29,153 706,907 Additions 2,432 38 801 75,450 78,721 Transferred into use 57,666 748 11,499 (69,913) — Arising on business combinations 973 4,601 605 204 6,383 Transfer to assets held for sale (992) (1) (24) (27) (1,044) Disposal (44,394) (559) (5,542) 334 (50,161) Other (341) 482 159 (137) 163 Foreign exchange differences 1,306 10 170 12 1,498 December 31,2021 591,758 41,878 73,755 35,076 742,467 Accumulated depreciation and impairment January 1, 2019 (380,014) (10,217) (40,037) — (430,268) Charge for the year (47,905) (1,148) (5,064) — (54,117) Transfer to assets held for sale 762 (76) (1) — 685 Disposal 26,163 256 2,709 — 29,128 Disposal of VF Ukraine (Note 11) 40,717 1,056 5,540 — 47,313 Other (962) (616) 628 — (950) Foreign exchange differences (767) 174 (39) — (632) December 31, 2019 (362,006) (10,571) (36,264) — (408,841) Charge for the year (43,220) (1,153) (5,696) — (50,069) Disposal of NVISION GROUP (Note 11) — — 236 — 236 Transfer to assets held for sale 1,899 146 (7) — 2,038 Disposal 33,058 343 4,165 — 37,566 Other (5) (133) (34) — (172) Foreign exchange differences (1,968) (397) (496) — (2,861) December 31, 2020 (372,242) (11,765) (38,096) — (422,103) Charge for the year (44,387) (1,204) (7,548) — (53,139) Transfer to assets held for sale 1,247 1 15 — 1,263 Disposal 38,225 435 5,062 — 43,722 Other 277 (99) (4) — 174 Foreign exchange differences (1,016) (6) (112) — (1,134) December 31, 2021 (377,896) (12,638) (40,683) — (431,217) Net book value December 31, 2020 202,866 24,794 27,991 29,153 284,804 December 31, 2021 213,862 29,240 33,072 35,076 311,250 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL | |
Summary of change in the net carrying amount of goodwill | Telecom Other Total Balance at January 1, 2020 Gross amount of goodwill 32,801 11,380 44,181 Accumulated impairment loss (1,466) (4,040) (5,506) 31,335 7,340 38,675 Acquisitions (Note 5) — 282 282 Reclassification (Note 6) (1,877) 1,877 — Impairment (Note 22) — (1,281) (1,281) Currency translation adjustment — 365 365 Balance at December 31, 2020 Gross amount of goodwill 30,924 13,904 44,828 Accumulated impairment loss (1) (1,466) (5,321) (6,787) 29,458 8,583 38,041 Acquisitions (Note 5) 4,337 46 4,383 Reclassification (Note 6) 253 (253) — Impairment (Note 22) — — — Currency translation adjustment — 395 395 Balance at December 31, 2021 Gross amount of goodwill 35,514 14,092 49,606 Accumulated impairment loss (1) (1,466) (5,321) (6,787) 34,048 8,771 42,819 (1) Accumulated impairment loss of Other segments consists of impairment loss of CGU “Armenia” (RUB 3,516 million), impairment loss of CGU “Oblachnyi retail” (RUB 524 million) and impairment loss of CGU “Entertainment” (RUB 1,281 million). |
IMPAIRMENT REVIEW (Tables)
IMPAIRMENT REVIEW (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
IMPAIRMENT REVIEW | |
Schedule of impairment loss by CGU | The total amount of impairment loss and reversal of impairment charges for the year ended December 31, 2021, 2020 and 2019 was allocated to the long-lived assets carrying amounts as follows: 2021 2020 2019 MTS MTS MTS Turkmenistan Entertainment Kinopolis Turkmenistan Turkmenistan Goodwill 1,281 — — — Property, plant and equipment (10) — (66) (114) Investment property — 807 — — Other intangible assets — — — (34) Total (10) 1,281 807 (66) (148) |
Schedule of OIBDA margin applied for value-in-use calculation of related CGUs | December 31, sick CGU 2021 2020 Russia Convergent 41.3%-46.9% 43.2%-44.3% Armenia 53.5%-60.3% 51.8%-54.0% MGTS Commercial 59.9%-63.0% Not available MGTS Service 42.5%-51.8% Not available Nvision Czech Republic 4.3%-5.0% 3.5%-5.2% Entertainment 4.8%-12% 8.8%-32% Cloud 37.7%-67.3% 41.3%-69.0% |
Schedule of capital expenditure as a percentage of revenue applied for value-in-use calculations of related CGUs | December 31, CGU 2021 2020 Russia Convergent 18 % 20.9 % Armenia 22 % 22.2 % MGTS Commercial 16 % Not available MGTS Service 16 % Not available Nvision Czech Republic 1 % 1.2 % Entertainment 3 % 0.0 % Cloud 17 % 15.4 % |
Schedule of terminal growth rates applied for value in-use-calculation of related CGUs | December 31, CGU 2021 2020 Russia Convergent 1 % 1 % Armenia nil nil MGTS Commercial 1 % Not available MGTS Service 1 % Not available Nvision Czech Republic 2 % 2 % Entertainment 1.5 % 1.5 % Cloud 1 % 1 % |
Schedule of pre-tax rates for discounting cash flows in functional currencies of related CGUs | December 31, CGU 2021 2020 Russia Convergent 10.1 % 11.4 % Armenia 11.2 % 13.3 % MGTS Commercial 12.7 % Not available MGTS Service 9.9 % Not available Nvision Czech Republic 6.0 % 6.1 % Entertainment 13.1 % 13.6 % Cloud 13.6 % 13.2 % |
OTHER INTANGIBLE ASSETS (Tables
OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
OTHER INTANGIBLE ASSETS | |
Schedule of balances of cost, accumulated amortization, net book value and movements of other intangible assets | Balances of historical cost, accumulated amortization, net book value as of December 31, 2021 and 2020 and movements of other intangible assets for the year ended December 31, 2021, 2020 and 2019 were as follows: Right to use Billing and Cost to radio other Numbering obtain Licenses frequencies software Client base capacity contracts Other Total Useful life, years 1 to 20 1 to 15 1 to 25 4 to 31 2 to 15 2 to 5 1 to 10 Cost January 1, 2019 39,627 6,648 138,564 8,790 2,868 23,360 3,606 223,463 Additions 1,106 (38) 27,921 — (2) 10,290 366 39,643 Arising on business combinations (Note 5) — — 6 (37) 2 — 61 32 Disposal of VF Ukraine (Note 11) (19,149) — (15,770) — (136) (1,826) (692) (37,573) Impairment — (26) — — — — — (26) Disposal (84) (865) (11,564) (2,823) (64) (18,281) (208) (33,889) Other 4 (1) 93 — — — (81) 15 Foreign exchange differences 201 (29) 718 — 9 92 44 1,035 December 31, 2019 21,705 5,689 139,968 5,930 2,677 13,635 3,096 192,700 Additions 1,466 (11) 35,277 — 15 10,390 1,941 49,078 Arising on business combinations (Note 5) — — — — — — — — Disposal of NVISION GROUP (Note 11) — — (311) — — — — (311) Reclassification into assets for sale — — (184) — — — — (184) Impairment — 43 (167) — — — (2) (126) Disposal (108) (172) (28,035) (73) (24) (9,758) (1,033) (39,203) Other 25 30 (83) — — — (1) (29) Foreign exchange differences 913 — 386 — — — 4 1,303 December 31, 2020 24,001 5,579 146,851 5,857 2,668 14,267 4,005 203,228 Additions 1,350 — 34,421 — 75 3,653 5,494 44,993 Arising on business combinations (Note 5) — — 571 1,147 174 — 576 2,468 Reclassification into assets for sale — — (17) — — — — (17) Impairment (1) 21 — — — — — 20 Disposal (39) (233) (14,783) (680) (251) (3,287) (1,064) (20,337) Other — 1 (97) — — — (9) (105) Foreign exchange differences 992 — 381 — — — (1) 1,372 December 31, 2021 26,303 5,368 167,327 6,324 2,666 14,633 9,001 231,622 Accumulated amortisation and impairment January 1, 2019 (16,113) (4,586) (80,785) (5,258) (2,754) (16,343) (1,662) (127,501) Charge for the year (2,911) (372) (24,394) (603) (41) (6,887) (374) (35,582) Disposal of VF Ukraine (Note 11) 5,155 — 12,657 — 129 1,208 301 19,450 Effect on assets impairment — — — — — — — — Disposal 25 831 11,065 2,813 64 18,281 196 33,275 Other (2) — (24) — — (2,573) 17 (2,582) Foreign exchange differences 664 29 (615) — (9) (80) (20) (31) December 31, 2019 (13,182) (4,098) (82,096) (3,048) (2,611) (6,394) (1,542) (112,971) Charge for the year (1,266) (367) (25,146) (431) (27) (9,964) (345) (37,546) Disposal of NVISION GROUP (Note 11) — — 77 — — — — 77 Disposal 71 160 27,953 72 24 9,758 402 38,440 Other (10) (31) 81 — — — 2 42 Foreign exchange differences (894) — (275) — — — 2 (1,167) December 31, 2020 (15,281) (4,336) (79,406) (3,407) (2,614) (6,600) (1,481) (113,125) Charge for the year (1,443) (349) (29,737) (631) (35) (3,424) (1,867) (37,486) Disposal 3 228 14,716 679 249 3,288 920 20,083 Other — — 204 — — — 16 220 Foreign exchange differences (971) — (211) — — — — (1,182) December 31, 2021 (17,692) (4,457) (94,434) (3,359) (2,400) (6,736) (2,412) (131,490) Net book value December 31, 2020 8,720 1,243 67,445 2,450 54 7,667 2,524 90,103 December 31, 2021 8,611 911 72,893 2,965 266 7,897 6,589 100,132 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS | |
Schedule of the Group's borrowings | December 31, 2021 2020 Notes 191,996 208,155 Bank and other loans 270,143 221,113 Total borrowings 462,139 429,268 Less: current portion (111,839) (34,125) Total borrowings, non-current 350,300 395,143 |
Schedule of the Group's notes | Interest rate (actual at December 31, December 31, December 31, Currency 2021) 2021 2020 MTS International Notes due 2023 USD 5.00% 33,291 33,091 MTS PJSC Notes due 2022 RUB 7.70% 14,991 14,980 MTS PJSC Notes due 2025 RUB 8.00% 14,990 14,987 MTS PJSC Notes due 2023 RUB 6.85% 14,982 14,971 MTS PJSC Notes due 2027 RUB 6.60% 14,975 14,971 MTS PJSC Notes due 2022 RUB 9.00% 10,000 9,998 MTS PJSC Notes due 2026 RUB 7.90% 9,999 9,998 MTS PJSC Notes due 2022 RUB 5.50% 9,995 9,984 MTS PJSC Notes due 2022 RUB 6.45% 9,994 9,988 MTS PJSC Notes due 2025 RUB 7.25% 9,993 9,990 MTS PJSC Notes due 2024 RUB 8.70% 9,991 9,986 MTS PJSC Notes due 2023 RUB 6.50% 9,923 9,860 MTS PJSC Notes due 2024 RUB 8.60% 7,491 7,488 MTS PJSC Notes due 2027 RUB 6.60% 6,983 6,980 MTS PJSC Notes due 2022 RUB 8.40% 4,997 4,994 MTS PJSC Notes due 2026 RUB 6.60% 4,992 4,990 MTS PJSC Notes due 2024 RUB 6.50% 4,319 — MTS PJSC Notes due 2031 RUB 7.50% 78 891 MTS PJSC Notes due 2021 RUB 8.85% — 9,999 MTS PJSC Notes due 2021 RUB 7.10% — 9,997 Other 12 12 Total notes 191,996 208,155 Less: current portion (49,923) (20,813) Total notes, non-current 142,073 187,342 |
Schedule of dates of the announcement of the sequential coupon for note issuances | MTS PJSC Notes due 2031 February 2026 |
Schedule of the Group's loans from banks and financial institutions | Interest rate (actual at December 31, December 31, December 31, Maturity 2021) 2021 2020 RUB-denominated: Sberbank 2022-2024 5.99%-CBR 1 135,000 85,001 VTB 2024-2026 CBR 1 1 129,307 129,091 Related party loans 2022-2024 8.70% - CBR 1 1,968 1,803 Subsidized loans 2025 0.1 CBR 1 1,769 1,845 Other 2,099 3,373 Total bank and other loans 270,143 221,113 Less: current portion (61,916) (13,312) Total bank and other loans, non-current 208,227 207,801 1 CBR – Central Bank of Russia |
Schedule of total available unused credit facilities | Currency Maturity Interest rate Available till Available amount Sberbank RUB 2025 To be agreed August 2025 130,000 NDB USD 2028 LIBOR+ 1.75% July 2022 22,288 Sberbank RUB 2024 To be agreed August 2024 20,000 Sberbank RUB 2024 To be agreed May 2024 15,000 Rosselhozbank RUB/USD/EUR 2022 To be agreed November 2022 7,000 VTB RUB 2028 To be agreed August 2028 5,000 SPB RUB 2024 To be agreed January 2024 3,000 VEB RUB 2025 0.1 CBR key rate 1 November 2023 2,490 ZTV RUB 2022 CBR key rate 1 July 2022 1,060 VEB RUB 2025 0.1 CBR key rate 1 November 2023 970 Cisco RUB 2023 To be agreed July 2022 515 Total 207,323 1 CBR – Central Bank of Russia |
Schedule of aggregated scheduled maturities of principal on notes and bank loans | December 31, 2021 Bank loans Notes and other debt Payments due in the year ending December 31, 2022 62,772 83,862 2023 66,809 58,523 2024 27,346 72,799 2025 28,529 93,385 2026 17,448 15,136 Thereafter 22,477 — Contractual undiscounted cash flows 225,381 323,705 Less: unamortized debt issuance costs (184) — Less: interest (33,201) (52,628) Less: debt modification — (693) Less: subsidized interest rate effect — (241) Total debt 191,996 270,143 |
RIGHT-OF-USE ASSETS AND LEASE_2
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |
Summary of estimated terms over which right-of-use assets are amortised | Sites for placement of network equipment and base stations inside the buildings 10 years Sites for placement of network equipment and base stations on land 20 years Retail stores Up to 8 years Administrative offices, warehouses, parking garages not less than 3 years Vehicles 4 – 5 years |
Summary of net book value of rights-of-use assets | December 31, 2021 2020 Sites for placement of network and base station equipment 91,566 93,948 Land and buildings 40,572 36,468 Vehicles and other 205 87 Right-of-use assets, net 132,343 130,503 The following table presents a summary of depreciation charge of the right-of-use assets: 2021 2020 2019 Sites for network and base station equipment 11,448 6,903 6,900 Land and buildings 8,328 11,903 11,968 Vehicles and other 103 43 404 Exclusive rights for trademarks — — 693 Depreciation charge, total 19,879 18,849 19,965 |
Schedule of expenses recognized in respect of variable lease payments not included on the measurement of lease liabilities and short-term leases | 2021 2020 2019 Variable lease payments 10,623 9,542 8,522 Short-term leases 310 195 203 Total 10,933 9,737 8,725 |
Schedule of capital leases future minimum lease payments and present value of the net minimum lease payments | December 31, 2021 2020 Minimum lease payments, including: Current portion (less than 1 year) 29,758 27,094 More than 1 to 5 years 101,965 98,737 Over 5 years 91,031 93,520 Total minimum lease payments 222,754 219,351 Less amount representing interest (68,245) (68,537) Present value of net minimum lease payments, including: Current portion (less than 1 year) 18,709 16,177 More than 1 to 5 years 70,818 66,784 Over 5 years 64,982 67,853 Total present value of net minimum lease payments 154,509 150,814 Less current portion of lease obligations (18,709) (16,177) Non-current portion of lease obligations 135,800 134,637 |
RECONCILIATION OF LIABILITIES_2
RECONCILIATION OF LIABILITIES ARISING FROM FINANCIAL ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RECONCILIATION OF LIABILITIES ARISING FROM FINANCIAL ACTIVITIES | |
Schedule of Reconciliation of liabilities arising from financial activities | Foreign Other Change in December 31, Financing Operating Acquisitions/ exchange comprehensive Change retained Other December 31, 2020 cash flows cash flows Disposals movement income in fair value earnings changes (1) 2021 Notes (Note 24) 208,155 (16,504) — — 187 — — — 158 191,996 Bank and other loans (Note 24) 221,113 48,718 — 1,735 — (10) — — (1,413) 270,143 Lease obligation (Note 0) 150,814 (16,516) (11,548) 146 45 72 — — 31,496 154,509 Payables related to repurchase of common stock (Note 32) — (21,483) — — — — — — 21,483 — Dividends payable (Note 32) 109 (61,955) — — — — — 61,967 (53) 68 Payables related to transactions under common control — (3,474) — — — — — — 3,474 — Liability under put option agreement 62 — — — — — (62) — — — Derivative instruments (3,591) — — — (125) — — — 426 (3,290) Total liabilities arising from financial activities 576,662 (71,214) (11,548) 1,881 107 62 (62) 61,967 55,571 613,426 (1) Including accrual of liabilities related to repurchase of common stock, additions under lease agreements, dividends related to non-controlling interest, depreciation of debt issuance cost, modification gain and other changes. Foreign Other Change in December 31, Financing Operating Acquisitions/ exchange comprehensive Change retained Other December 31, 2019 cash flows cash flows Disposals movement income in fair value earnings changes (1) 2020 Notes (Note 24) 183,935 18,590 — — 7,674 — — — (2,044) 208,155 Bank and other loans (Note 24) 159,384 60,055 — 26 — — — — 1,648 221,113 Lease obligation (Note 0) 155,308 (15,054) (12,173) (145) 1,405 150 — — 21,323 150,814 Payables related to repurchase of common stock (Note 32) — (16,028) — — — — — — 16,028 — Dividends payable (Note 32) 23,080 (74,923) — — — — — 52,012 (60) 109 Payables related to transactions under common control 22 — — — — — — — (22) — Liability under put option agreement 73 — — — — — (53) — 42 62 Derivative instruments 955 — (449) — (3,582) — — — (515) (3,591) Total liabilities arising from financial activities 522,757 (27,360) (12,622) (119) 5,497 150 (53) 52,012 36,400 576,662 (1) Including accrual of liabilities related to repurchase of common stock, additions under lease agreements, dividends related to non-controlling interest, depreciation of debt issuance cost, modification gain and other changes. |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROVISIONS | |
Schedule of the movement in provisions | Tax Provision provisions for Employee Litigation other than decommissioning bonuses SEC and Other for income and and other provision provisions Total tax restoration rewards (Note 34) (Note 34) provisions January 1, 2019 (252) (3,109) (10,378) (59,050) (1,513) (74,302) Arising during the year (410) (2,341) (16,896) — (208) (19,855) Utilised 19 19 16,055 55,607 527 72,227 Discount rate adjustment and imputed interest (change in estimates) — 42 (12) — — 30 Unused amounts reversed 34 — 523 — 155 712 Arising due to acquisitions of subsidiaries — — (9) — — (9) Disposal of VF Ukraine 50 760 672 — 126 1,608 Other (4) (159) 2 3,443 20 3,302 December 31, 2019 (563) (4,788) (10,043) — (893) (16,287) Current portion (563) (126) (9,944) — (893) (11,526) Non-current portion — (4,662) (99) — — (4,761) January 1, 2020 (563) (4,788) (10,043) — (893) (16,287) Arising during the year (211) (914) (14,770) — (3,860) (19,755) Utilised 29 54 16,489 — 137 16,709 Discount rate adjustment and imputed interest (change in estimates) 1 (138) 67 — — (70) Unused amounts reversed 8 513 (125) — 114 510 Arising due to acquisitions of subsidiaries — — — — — — Disposal of Nvision Group 115 — 245 — 9 369 Other — — (62) — (2) (64) December 31, 2020 (621) (5,273) (8,199) — (4,495) (18,588) Current portion (621) (229) (8,115) — (4,495) (13,460) Non-current portion — (5,044) (84) — — (5,128) January 1, 2021 (621) (5,273) (8,199) — (4,495) (18,588) Arising during the year (74) (2,329) (17,860) — (1,862) (22,125) Utilised 161 31 13,258 — 1,736 15,186 Discount rate adjustment and imputed interest (change in estimates) — (145) 4 — — (141) Unused amounts reversed 488 226 580 — (2) 1,292 Arising due to acquisitions of subsidiaries (207) — (159) — (3) (369) Other (1) — (18) — (3) (22) December 31, 2021 (254) (7,490) (12,394) — (4,629) (24,767) Current portion (254) (284) (12,312) — (4,629) (17,479) Non-current portion — (7,206) (82) — — (7,288) |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of financial assets | December 31, 2021 2020 Cash and cash equivalents (Note 14) 40,590 85,405 Trade and other receivables (Note 18) 39,795 35,031 Accounts receivable, related parties (Note 31) 7,287 14,189 Other financial assets: Financial assets at amortized cost: Deposits and loans issued 208,018 118,594 Notes 9,158 9,583 Other 2,138 2,196 Total financial assets at amortized cost 219,314 130,373 Financial assets at fair value through profit or loss: Securities held by MTS Bank and Sistema Capital 25,687 21,824 Mutual funds 10,719 10,699 Assets in Sistema Capital trust management 10,374 10,313 Cross-currency swaps not designated as hedges 4,627 4,508 Contingent consideration (Note 11) 1,867 2,631 Investments in equity 1,228 — Embedded derivatives in a lease agreement 434 562 Assets under option agreements 112 228 Currency forwards, swaps and options not designated as hedges 110 2 Total financial assets at fair value through profit or loss 55,158 50,767 Total other financial assets 274,472 181,140 Total financial assets 362,144 315,765 Less current portion (224,862) (227,338) Total financial assets, non-current 137,282 88,427 |
Schedule of financial liabilities | December 31, 2021 2020 Trade and other payables 72,078 56,017 Accounts payable, related parties (Note 31) 4,107 3,146 Other financial liabilities: Financial liabilities at amortized cost: Bank and other loans (Note 24) 270,143 221,113 Notes (Note 24) 191,996 208,155 Bank deposits and liabilities (Note 30) 221,368 167,677 Lease obligations (Note 0) 154,509 150,814 Total financial liabilities at amortized cost 838,016 747,759 Financial liabilities at fair value through profit or loss: Contingent consideration and other liabilities 383 1,068 Liabilities under option agreements — 55 Total financial liabilities at fair value through profit or loss 383 1,123 Total other financial liabilities 838,399 748,882 Total financial liabilities 914,584 808,045 Less current portion (413,990) (276,368) Total financial liabilities, non-current 500,594 531,677 |
Schedule of fair value of financial instruments | December 31, Level of inputs 2021 2020 Assets Securities held by MTS Bank and Sistema Capital Level 1 25,687 21,824 Derivative instruments Level 2 4,736 4,510 Cross-currency swaps not designated as hedges 4,627 4,508 Currency forwards, swaps and options 110 2 Mutual investment funds, managed by Sistema Capital (Note 15) Level 2 10,719 10,699 Assets in Sistema Capital trust management (Note 15) Level 2 10,374 10,313 Embedded derivatives in a lease agreement Level 2 434 562 Contingent consideration Level 3 1,867 2,631 Investments in equity Level 3 1,228 — Assets under option agreements Level 3 112 228 Liabilities Contingent consideration Level 3 (188) (944) Liabilities under option agreements Level 3 — (55) |
Schedule of net realized and unrealized gains (losses) of level 3 assets and liabilities | For the years ended December 31, 2021 2020 2019 Net realized gains of Level 3 assets 2,263 846 2,013 Net realized losses of Level 3 liabilities (420) (39) (1,813) 1,843 807 200 For the years ended December 31, 2021 2020 2019 Net unrealized gains of Level 3 assets 385 — — Net unrealized gains/(losses) of Level 3 liabilities 391 — — 776 — — |
Schedule of borrowings, gross of debt issuance costs, where carrying value does not approximate fair value | December 31, 2021 December 31, 2020 Level of Carrying Carrying inputs Fair value value Fair value value Notes Level 1 (173,903) (174,984) (200,198) (191,142) Unquoted notes Level 3 (17,012) (17,012) (17,012) (17,012) Bank and other loans (Note 24) Level 3 (267,405) (270,143) (221,113) (221,113) (458,320) (462,139) (438,323) (429,267) |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FINANCIAL RISK MANAGEMENT | |
Schedule of sensitivity to a reasonably possible change in USD and EUR exchange rates | USD - effect on EUR - effect on Change profit before tax Change profit before tax in rate, USD RUB mln in rate, EUR RUB mln 2021 +15% (856) +15% (1,012) -15% 856 -15% 1,012 2020 +10% 786 +10% (682) -10% (1,291) -10% 682 2019 +5% 2,516 +1% 120 -5% (2,516) -1% (120) |
Schedule of exposure to credit risk | December 31, 2021 2020 Deposits and loans issued 208,018 118,594 Cash and cash equivalents 40,590 85,405 Trade and other receivables 39,795 35,031 Securities held by MTS Bank 24,737 21,824 Mutual funds 10,719 10,699 Assets in Sistema Capital trust management 10,374 10,313 Notes 9,158 9,583 Derivative financial instruments 5,171 5,072 Contingent consideration 1,867 2,631 Investments in equity 1,228 400 Assets under option agreements 112 228 Other 3,088 1,796 |
BANK FINANCIAL ASSETS AND LIA_2
BANK FINANCIAL ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments | |
Schedule of the structure and amounts of current and non current bank deposits and loans to customers | December 31, 2021 2020 Loans to customers 223,566 130,164 Due from banks 3,514 2,950 Allowance for ECL (21,144) (16,446) Total bank deposits and loans to customers, net 205,936 116,668 Less: current portion (87,594) (52,676) Bank deposits and loans to customers, non-current 118,342 63,992 |
Schedule of structure and amounts of bank loans to customers | December 31, 2021 2020 Loans to legal entities Corporate borrowers 28,409 26,602 Medium-sized enterprises and small businesses 1,706 1,736 Total loans to legal entities 30,115 28,338 Loans to individuals Mortgage loans 16,553 14,384 Consumer loans 139,766 65,142 Credit cards 36,933 21,874 Other 200 426 Total loans to individuals 193,452 101,826 Due from banks Time deposits with banks 1,781 1,770 Obligatory reserves with the Central Bank of Russia 1,733 1,180 Total due from banks 3,514 2,950 Total bank deposits and loans to customers 227,080 133,114 Less: allowance for expected credit losses (21,144) (16,446) Total bank deposits and loans to customers, net 205,936 116,668 |
Schedule of carrying value of loans to customers by types of collateral | December 31, 2021 2020 Guaranties 22,380 17,200 Pledge of real estate 19,115 18,733 Securities 284 370 Pledge of equipment 1 100 Rights of claim, pledge of inventories or own promissory notes and by other collateral — 156 Unsecured loans 181,787 93,605 Allowance for expected credit losses (21,114) (16,436) Total loans to customers, net 202,453 113,728 |
Schedule of movements in the allowance for impairment losses attributable to bank deposits and loans to customers | Loans to Due from customers banks Total Balance as at January 1, 2021 16,436 10 16,446 Provision charge/release 11,046 20 11,066 Recovery of previously written-off assets 1,557 — 1,557 Bad debt written-off (3,361) — (3,361) Sale of loans (4,324) — (4,324) Other movements (240) — (240) Balance as at December 31, 2021 21,114 30 21,144 Loans to Due from customers banks Total Balance as at January 1, 2020 10,024 7 10,031 Provision charge/release 8,271 3 8,274 Recovery of previously written-off assets 565 — 565 Bad debt written-off (2,145) — (2,145) Sale of loans (279) — (279) Balance as at December 31, 2020 16,436 10 16,446 |
Schedule of bank deposits and liabilities | December 31, 2021 2020 Customer accounts 192,177 139,438 Due to banks and other financial institutions 21,430 24,644 Debt securities issued 5,581 1,840 Financial liabilities at fair value through profit or loss — 2 Other financial liabilities 2,181 1,753 Total bank deposits and liabilities 221,369 167,677 Less: current portion (207,056) (165,794) Total bank deposits and liabilities, non-current 14,313 1,883 |
Schedule of deposits from customers | December 31, 2021 2020 Legal entities - Current/settlement accounts 13,311 13,163 - Term deposits 63,003 19,466 Individuals - Current/settlement accounts 20,654 18,219 - Term deposits 95,209 88,590 Total customer accounts 192,177 139,438 |
Schedule of due to banks | December 31, 2021 2020 Loans under repurchase agreements 9,333 20,540 Loans and term deposits from banks and other financial institutions 9,474 2,732 Correspondent accounts of other banks 2,623 1,372 Total due to banks 21,430 24,644 |
Schedule of Group's liquidity analysis for non-derivative financial assets and liabilities | Up to 1 month to 3 months to 1 year to Over Maturity As of December 31, 2021 1 month 3 months 1 year 5 years 5 years undefined Total Financial assets Financial assets at fair value through profit or loss 24,769 — — — — 1 24,770 Due from banks 1,781 — — — — — 1,781 Loans to customers 9,985 18,848 50,342 109,949 11,346 1,983 202,453 Investments in securities 9 514 5,555 2,808 — — 8,886 Total interest bearing financial assets 36,544 19,362 55,897 112,757 11,346 1,984 237,890 Cash and cash equivalents 15,974 — — — — — 15,974 Due from banks — — — — — 1,733 1,733 Other financial assets 2,272 6 15 — — 31 2,324 Total non-interest bearing financial assets 18,246 6 15 — — 1,764 20,031 Total financial assets 54,790 19,368 55,912 112,757 11,346 3,747 257,920 Up to 1 month to 3 months to 1 year to Over 5 Maturity 1 month 3 months 1 year 5 years years undefined Total Financial liabilities Due to banks and other financial institutions (18,788) — — (19) — — (18,807) Customer accounts (35,294) (13,801) (95,472) (9,114) — — (153,681) Debt securities issued (32) — (350) (5,199) — — (5,581) Lease obligations (17) (44) (200) (471) — — (732) Total interest bearing financial liabilities (54,131) (13,845) (96,022) (14,803) — — (178,801) Due to banks and other financial institutions (2,623) — — — — — (2,623) Customer accounts (38,496) — — — — — (38,496) Other financial liabilities (2,857) (1,147) (2,262) — — — (6,266) Total non-interest bearing financial liabilities (43,976) (1,147) (2,262) — — — (47,385) Total financial liabilities (98,107) (14,992) (98,284) (14,803) — — (226,186) Liquidity gap (43,317) 4,376 (42,372) 97,954 11,346 Stable sources of funding 43,901 (2,392) 43,814 (3,519) (81,804) Net liquidity gap 584 1,984 1,442 94,435 (70,458) Cumulative liquidity gap 584 2,568 4,010 98,445 27,987 Up to 1 month to 3 months to 1 year to Over Maturity As of December 31, 2020 1 month 3 months 1 year 5 years 5 years undefined Total Financial assets Financial assets at fair value through profit or loss 21,823 — — — — 1 21,824 Due from banks 16,915 — — — — — 16,915 Loans to customers 4,547 8,134 34,523 55,438 8,971 1,971 113,584 Investments in securities 15 166 643 8,760 — — 9,584 Total interest bearing financial assets 43,300 8,300 35,166 64,198 8,971 1,972 161,907 Cash and cash equivalents 22,274 — — — — — 22,274 Due from banks 1,180 — — — — — 1,180 Currency forwards and options not designated as hedges 1 1 — — — — 2 Other financial assets 876 125 35 — — 47 1,083 Total non-interest bearing financial assets 24,331 126 35 — — 47 24,539 Total financial assets 67,631 8,426 35,201 64,198 8,971 2,019 186,446 Up to 1 1 month to 3 months to 1 year to Over month 3 months 1 year 5 years 5 years Total Financial liabilities Due to banks and other financial institutions (22,962) — (127) — — (23,089) Customer accounts (19,046) (15,049) (69,677) (1,423) — (105,195) Debt securities issued (1,204) — (341) (295) — (1,840) Lease obligations (11) (39) (164) (320) — (534) Total interest bearing financial liabilities (43,223) (15,088) (70,309) (2,038) — (130,658) Currency forwards and options not designated as hedges (1) (1) — — — (2) Due to banks and other financial institutions (1,372) — — — — (1,372) Customer accounts (33,908) — — — — (33,908) Other financial liabilities (1,837) (492) (1,472) — — (3,801) Total non-interest bearing financial liabilities (37,118) (493) (1,472) — — (39,083) Total financial liabilities (80,341) (15,581) (71,781) (2,038) — (169,741) Liquidity gap (12,710) (7,155) (36,580) 62,160 8,971 Stable sources of funding 41,502 2,342 30,933 (15,732) (59,045) Net liquidity gap 28,792 (4,813) (5,647) 46,428 (50,074) Cumulative liquidity gap 28,792 23,979 18,332 64,760 14,686 |
Schedule of future aggregate undiscounted cash flows | Weighted average Up to 1 month to 3 months to 1 year to Over Maturity As of December 31, 2021 interest rate 1 month 3 months 1 year 5 years 5 years undefined Total Interest bearing financial liabilities Due to banks 8.4 % (18,788) — (19) — — — (18,807) Customer accounts 6.3 % (35,402) (13,964) (98,665) (10,164) — — (158,195) Debt securities issued 7.3 % (33) — (695) (5,389) — — (6,117) Lease obligations 5.2 % (11) (45) (200) (471) (1) — (728) Total interest bearing financial liabilities (54,234) (14,009) (99,579) (16,024) (1) — (183,847) Non-interest bearing financial liabilities Due to banks (2,623) — — — — — (2,623) Customer accounts (38,496) — — — — — (38,496) Other financial liabilities (2,857) (1,147) (2,262) — — — (6,266) Total non-interest bearing financial liabilities and commitments (43,976) (1,147) (2,262) — — — (47,385) Total financial liabilities (98,210) (15,156) (101,841) (16,024) (1) — (231,232) Weighted average Up to 1 month to 3 months to 1 year to Over Maturity As of December 31, 2020 interest rate 1 month 3 months 1 year 5 years 5 years undefined Total Interest bearing financial liabilities Due to banks 4.4 % (22,962) — (127) — — — (23,089) Customer accounts 5.9 % (19,265) (15,292) (71,248) (1,458) — — (107,263) Debt securities issued 4.0 % (1,204) — (348) (321) — — (1,873) Lease obligations 6.1 % (10) (40) (165) (319) — — (534) Total interest bearing financial liabilities (43,441) (15,332) (71,888) (2,098) — — (132,759) Non-interest bearing financial liabilities — — — — — — — Financial liabilities at fair value through profit or loss — — — — — — — Due to banks (1,372) — — — — — (1,372) Customer accounts (33,908) — — — — — (33,908) Other financial liabilities (1,837) (492) (1,472) — — — (3,801) Total non-interest bearing financial liabilities and commitments (37,117) (492) (1,472) — — — (39,081) Total financial liabilities (80,558) (15,824) (73,360) (2,098) — — (171,840) |
Information on Maximum amount of credit risk on guarantees issued and commitments on loans | As of December 31, 2021 Stage 1 Stage 2 Stage 3 Total Commitments on loans 36,759 745 33 37,537 Guarantees issued 13,798 2,257 100 16,155 Less provision (687) (15) (50) (752) Total commitments on loans and guarantees issued 49,870 2,987 83 52,940 As of December 31, 2020 Stage 1 Stage 2 Stage 3 Total Commitments on loans 21,410 1,729 56 23,195 Guarantees issued 21,426 2,084 247 23,757 Less provision (340) (33) (213) (586) Total commitments on loans and guarantees issued 42,496 3,780 90 46,366 |
Loans to legal entities | |
Financial instruments | |
Schedule of quality of loans | As of December 31, 2021 Stage 1 Stage 2 Stage 3 Total Low to fair risk 20,575 721 — 21,296 Monitoring 5,700 72 — 5,772 Doubtful — — 767 767 Impaired — — 2,280 2,280 Loss allowance (818) (25) (2,295) (3,138) Total 25,457 768 752 26,977 As of December 31, 2020 Stage 1 Stage 2 Stage 3 Total Low to fair risk 12,136 2,947 — 15,083 Monitoring 6,106 3,649 — 9,755 Doubtful — — 877 877 Impaired — — 2,623 2,623 Loss allowance (899) (141) (2,704) (3,744) Total 17,343 6,455 796 24,594 |
Loans to legal entities | Accumulated Depreciation | |
Financial instruments | |
Schedule of movements in provision for impairment losses on loans | Stage 1 Stage 2 Stage 3 Total Balance as at January 1, 2021 899 141 2,704 3,744 - Transfer to stage 1 119 (119) — — - Transfer to stage 2 (46) 49 (3) — - Transfer to stage 3 (105) (26) 131 — New financial assets originated or purchased 317 — — 317 Change due to change of credit risk (126) (20) (1,433) (1,579) Write-offs — — (79) (79) Recovery of previously written-off assets — — 975 975 Other movements (240) — — (240) Balance as at December 31, 2021 818 25 2,295 3,138 Stage 1 Stage 2 Stage 3 Total Balance as at January 1, 2020 681 77 3,199 3,957 - Transfer to stage 1 1 (1) — — - Transfer to stage 2 (66) 66 — — - Transfer to stage 3 (30) (47) 77 — New financial assets originated or purchased 418 — — 418 Change due to change of credit risk (105) 46 38 (21) Sale of loans — — (279) (279) Write-offs — — (515) (515) Recovery of previously written-off assets — — 184 184 Foreign exchange difference — — — — Balance as at December 31, 2020 899 141 2,704 3,744 |
Loans to individuals | |
Financial instruments | |
Schedule of quality of loans | As of December 31, 2021 Stage 1 Stage 2 Stage 3 Total Low to fair risk 174,667 756 — 175,423 Monitoring — 7,125 832 7,957 Impaired — — 10,072 10,072 Loss allowance (6,093) (3,361) (8,522) (17,976) Total 168,574 4,520 2,382 175,476 As of December 31, 2020 Stage 1 Stage 2 Stage 3 Total Low to fair risk 88,058 — — 88,058 Monitoring — 3,816 306 4,122 Impaired — — 9,646 9,646 Loss allowance (3,099) (1,446) (8,147) (12,692) Total 84,959 2,370 1,805 89,134 |
Analysis of credit quality of loans | Provision for Provision for ECL to As of December 31, 2021 Gross loans ECL Net loans gross loans Collectively assessed Not past due 175,422 (6,297) 169,125 4 % Overdue: up to 30 days 3,989 (1,090) 2,899 27 % 31 to 60 days 2,007 (1,240) 767 62 % 61 to 90 days 1,584 (1,093) 491 69 % 91 to 180 days 3,248 (2,499) 749 77 % over 180 days 6,641 (5,659) 982 85 % Total collectively assessed loans 192,891 (17,878) 175,013 9 % Individually impaired Not past due 364 (22) 342 6 % Overdue: up to 30 days — — — 0 % 31 to 60 days 8 — 8 0 % 61 to 90 days 3 (1) 2 33 % 91 to 180 days 5 (1) 4 20 % over 180 days 181 (74) 107 41 % Total individually impaired loans 561 (98) 463 17 % Total 193,452 (17,976) 175,476 9 % Provision for Provision for ECL to gross As of December 31, 2020 Gross loans ECL Net loans loans Collectively assessed Not past due 88,056 (3,101) 84,955 4 % Overdue: up to 30 days 2,370 (507) 1,863 21 % 31 to 60 days 841 (506) 335 60 % 61 to 90 days 605 (432) 173 71 % 91 to 180 days 1,739 (1,373) 366 79 % over 180 days 7,523 (6,431) 1,092 85 % Total collectively assessed loans 101,134 (12,350) 88,784 12 % Individually impaired Not past due 256 (90) 166 35 % Overdue: up to 30 days 46 (12) 34 0 % 31 to 60 days 7 — 7 0 % 61 to 90 days — — — — 91 to 180 days 6 — 6 0 % over 180 days 377 (240) 137 64 % Total individually impaired loans 692 (342) 350 49 % Total 101,826 (12,692) 89,134 12 % |
Loans to individuals | Accumulated Depreciation | |
Financial instruments | |
Schedule of movements in provision for impairment losses on loans | Stage 1 Stage 2 Stage 3 Total Balance as at January 1, 2021 3,099 1,446 8,147 12,692 - Transfer to stage 1 1,809 (1,633) (176) — - Transfer to stage 2 (939) 1,220 (281) — - Transfer to stage 3 (278) (4,691) 4,969 — New financial assets originated or purchased 3,821 — — 3,821 Change due to change of credit risk (1,419) 7,019 2,887 8,487 Write-offs — — (3,282) (3,282) Sales — — (4,324) (4,324) Recovery of previously written-off assets — — 582 582 Balance as at December 31, 2021 6,093 3,361 8,522 17,976 Stage 1 Stage 2 Stage 3 Total Balance as at January 1, 2020 1,808 923 3,336 6,067 - Transfer to stage 1 1,396 (1,172) (224) — - Transfer to stage 2 (415) 594 (179) — - Transfer to stage 3 (2) (3,848) 3,850 — New financial assets originated or purchased 1,226 — — 1,226 Change due to change of credit risk (914) 4,949 2,613 6,648 Write-offs — — (1,631) (1,631) Recovery of previously written-off assets — — 382 382 Balance as at December 31, 2020 3,099 1,446 8,147 12,692 |
Medium-sized enterprises and small businesses | |
Financial instruments | |
Analysis of credit quality of loans | Provision for Provision for ECL to As of December 31, 2021 Gross loans ECL Net loans gross loans Collectively assessed Not past due 1,079 (22) 1,057 2 % Overdue: — up to 30 days 19 (8) 11 42 % 31 to 60 days 15 (14) 1 93 % 61 to 90 days 11 (10) 1 91 % 91 to 180 days 14 (11) 3 79 % over 180 days 568 (374) 194 66 % Total collectively assessed loans 1,706 (439) 1,267 26 % Provision for Provision for ECL to gross As of December 31, 2020 Gross loans ECL Net loans loans Collectively assessed Not past due 1,025 (16) 1,009 2 % Overdue: up to 30 days 29 (6) 23 21 % 31 to 60 days 8 (3) 5 37 % 61 to 90 days 8 (5) 3 64 % 91 to 180 days 22 (12) 10 54 % over 180 days 644 (407) 237 63 % Total collectively assessed loans 1,736 (449) 1,287 26 % |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTIES | |
Schedule of investments in related parties | Balances of related parties’ transactions were as follows: December 31, 2021 2020 ASSETS FROM RELATED PARTIES NON-CURRENT ASSETS: Property, plant and equipment Sistema's subsidiaries 1,347 1,096 Other related parties 34 13 Right-of-use assets, Gross Book Value Sistema's subsidiaries 4,432 4,845 Other related parties 111 112 Right-of-use assets, Accumulated Depreciation Sistema's subsidiaries (1,586) (1,580) Other related parties (46) (17) Other investments The Group’s associates 625 159 Sistema's subsidiaries 117 370 Other related parties 2 — Accounts receivable, related parties Sistema's subsidiaries 5,000 5,209 Bank deposits and loans to customers Sistema's associates 2,587 1,376 Sistema's subsidiaries 1,179 1,480 Total non-current assets 13,802 13,063 CURRENT ASSETS: Accounts receivable, related parties Sistema's subsidiaries 1,255 4,571 The Group’s associates 911 1,397 Sistema, parent company - 2,829 Other related parties 121 183 Bank deposits and loans to customers Sistema's associates 2,078 2,819 Sistema's subsidiaries 820 3 Key management personnel of the Group and its parent 87 48 Short-term investments Sistema's subsidiaries 2,377 3 Sistema, parent company 1,443 — Cash and cash equivalents Sistema's subsidiaries 1,311 321 Other financial assets Sistema, parent company 1,829 1,831 Sistema's subsidiaries 300 461 Other related parties 109 — Other assets Sistema's subsidiaries 1,059 1,518 Other related parties 83 8 Total current assets 13,783 15,992 TOTAL ASSETS FROM RELATED PARTIES 27,585 29,055 LIABILITIES TO RELATED PARTIES NON-CURRENT LIABILITIES: Lease obligations Sistema's subsidiaries 3,968 4,801 Other related parties 70 77 Bank deposits and liabilities Key management personnel of the Group and its parent 1,433 124 Total non-current liabilities 5,471 5,002 CURRENT LIABILITIES: Accounts payable, related parties Sistema's subsidiaries 2,756 1,631 The Group’s associates 711 553 Sistema's associates 632 958 Other related parties 8 4 Borrowings The Group’s associates 2,129 1,776 Other related parties 11 16 Lease obligations Sistema's subsidiaries 551 724 Other related parties 13 14 Bank deposits and liabilities Key management personnel of the Group and its parent 32,886 34,708 Sistema's subsidiaries 22,312 10,752 Sistema's associates 9,163 2,689 Sistema, parent company 2,042 3,218 Other related parties 376 881 Total current liabilities 73,590 57,924 TOTAL LIABILITIES TO RELATED PARTIES 79,061 62,926 |
Schedule of revenue and operating transactions with related parties | 2021 2020 2019 Revenue Sistema's subsidiaries 4,294 4,371 3,740 Sistema's associates 752 615 407 The Group's associates 622 418 550 Other related parties 691 428 235 Total Revenue 6,359 5,832 4,932 Cost of services Sistema's subsidiaries 2,143 599 507 Key management personnel of the Group and its parent 1,476 1,830 1,973 Sistema's associates 281 127 139 Sistema, parent company 233 141 377 Other related parties 173 145 241 Selling, general and administrative expenses Key management personnel of the Group and its parent 4,256 2,003 2,372 Sistema's subsidiaries 728 625 672 Other related parties 84 66 144 Other operating income / (expense) Sistema's subsidiaries 2,831 2,160 5,203 Other related parties 59 (13) (13) Operating profit / (loss) (125) 2,443 3,697 Finance income / (loss) Sistema's subsidiaries 935 1,492 1,259 The Group's associates (101) (63) 475 Sistema, parent company 79 295 367 Other related parties (6) 7 8 Other non-operating income / (expense) The Group's associates — (278) — Other related parties 41 — — Profit before tax 823 3,896 5,806 |
Schedule of finance income from related parties | During the years ended December 31, 2021, 2020 and 2019, the Group acquired property, plant and equipment and intangible assets from the related parties in the amount of: 2021 2020 2019 Sistema's associates 2,530 6,299 410 Sistema's subsidiaries 10,330 3,324 656 The Group's associates 122 127 178 Other related parties — 112 — Total purchases of property, plant and equipment, intangible assets and other assets, related parties 12,982 9,862 1,244 |
STOCK-BASED COMPENSATIONS (Tabl
STOCK-BASED COMPENSATIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity-settled Share Based Awards | |
Share based compensation | |
Schedule of movements in the number of share options outstanding | Twelve month ended December 31, 2021 2020 Weighted- Weighted- average fair average fair Shares value per share Shares value per share (in thousands) (in RUB) (in thousands) (in RUB) Outstanding at the beginning of the period 3,194 424 3,907 444 Granted during the period 18,733 249 1,818 415 Forfeited during the period (447) 407 (373) 391 Exercised during the period (814) (1) 406 (2,158) (2) 443 Outstanding at the end of the period 20,666 327 3,194 424 Exercisable at the end of the period 6,246 361 1,494 408 (1) The weighted-average exercise price of shares was RUB 375 . (2) The weighted-average exercise price of shares was RUB 487 . |
Schedule of range of exercise prices and the weighted-average remaining contractual terms | December 31, 2021 Weighted- average Range of remaining Shares (in exercise prices contractual term thousands) (in RUB) (in month) Outstanding shares 20,666 Incl. to be exercised in 2022 5,689 153-599 3 to be exercised in 2023 6,241 136-545 15 to be exercised in 2024 8,736 121-846 27 |
Cash-settled Share Based Awards | |
Share based compensation | |
Schedule of movements in the number of share options outstanding | Twelve month ended December 31, 2021 2020 Weighted- Weighted- average fair average fair Shares value per share Shares value per share (in thousands) (in RUB) (in thousands) (in RUB) Outstanding at the beginning of the period 725 707 2,466 857 Granted during the period 3,788 423 510 782 Forfeited during the period (298) 678 (241) 782 Exercised during the period (729) (1) 707 (2,011) (1) 812 Outstanding at the end of the period 3,485 402 725 707 Exercisable at the end of the period 1,598 638 725 707 (1) The weighted-average exercise price of shares is equal weighted-average fair value. |
Schedule of range of exercise prices and the weighted-average remaining contractual terms | December 31, 2021 Weighted- average Range of remaining Shares exercise prices contractual term (in thousands) (in RUB) (in month) Outstanding shares, Incl. 3,485 to be exercised in 2022, based on ADR 969 953 3 to be exercised in 2022, based on ordinary shares 629 153 3 to be exercised in 2023, based on ordinary shares 629 136-273 15 to be exercised in 2024, based on ordinary shares 1,258 121-605 27 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHAREHOLDERS' EQUITY | |
Schedule of shares repurchased | December, 31 2021 2020 2019 Repurchased from: Shares RUBm Shares RUBm Shares RUBm Open market 42,512,570 13,981 26,038,847 8,525 32,589,740 8,472 Sistema Finance 22,796,040 7,503 22,758,872 7,485 28,929,344 7,450 Total 65,308,610 21,484 48,797,719 16,010 61,519,084 15,922 |
Schedule of declared cash dividends | 2021 2020 2019 Dividends declared (including dividends on treasury shares of 12,082, 6,936 and 9,449 respectively) 74,049 58,948 83,751 Dividends, RUB per ADS 74.12 59.00 83.82 Dividends, RUB per share 37.06 29.50 41.91 |
MGTS Group | |
SHAREHOLDERS' EQUITY | |
Schedule of financial information for non-controlling interest | MGTS 2021 2020 2019 Non-controlling interests opening balance (4,055) (3,328) (3,649) Profit for the year attributable to non-controlling interests (803) (675) (806) Dividends to non-controlling interests — — 1,123 Other (51) (52) 4 Non-controlling interests closing balance (4,909) (4,055) (3,328) |
Schedule of financial information for non-controlling interest in balance sheet | December 31, MGTS 2021 2020 Current assets 34,282 17,052 Non-current assets 57,631 66,129 Current liabilities (13,497) (18,471) Non-current liabilities (17,691) (19,881) |
Schedule of financial information for non-controlling interest in profit and loss | Year ended December 31, MGTS 2021 2020 2019 Revenue, gross of intercompany (41,255) (41,103) (39,479) Profit for the year, gross of intercompany (14,203) (11,811) (14,148) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of contingent liabilities in respect of additional tax settlements | December 31, 2021 2020 Contingent liabilities for additional taxes other than income tax 860 1,043 Contingent liabilities for additional income taxes 1,132 892 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS - Investments in significant entities (Details) ₽ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021RUB (₽) | Dec. 31, 2020RUB (₽) | Dec. 31, 2013USD ($) | Dec. 31, 2010USD ($) | |
Borrowings | ||||
Accounts payable | ₽ | ₽ 4,107 | ₽ 3,146 | ||
Factoring Arrangements | ||||
Borrowings | ||||
Accounts payable | ₽ | ₽ 9,343 | |||
Zelenaya Tochka Group | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 51.00% | ||
MTS Belarus | ||||
Disclosure of investments in significant entities | ||||
The Group's share in associate | 49.00% | 49.00% | ||
Sistema Capital | ||||
Disclosure of investments in significant entities | ||||
The Group's share in associate | 100.00% | 30.00% | ||
RTC | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
MTS Turkmenistan | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
MTS Armenia | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
MTS IT | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
Nvision Czech Republic | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
Sputnikovoe TV | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
Stream | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
Dega | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
Stream Digital | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
MDTZK LLC (Ticketland) | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
IT Grad | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
Kinopolis | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
MTS Media | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
MTS Artifitial Intelligence | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
Ponominalu | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
MTS Bank | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 99.90% | 99.90% | ||
MGTS Group | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 94.70% | 94.70% | ||
Navigation Information Systems Group | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 94.70% | 94.70% | ||
Oblachny Retail LLC | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 50.80% | ||
MTS International | Notes issued in 2010 | ||||
Borrowings | ||||
Notional amount | $ | $ 750 | |||
Interest rate | 8.625% | |||
MTS International | Notes issued in 2013 | ||||
Borrowings | ||||
Notional amount | $ | $ 500 | |||
Interest rate | 5.00% | |||
MTT | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | |||
MTS Avto | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
Energy Group | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | |||
Bastion | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% | 100.00% | ||
MSW | ||||
Disclosure of investments in significant entities | ||||
Ownership interest in subsidiary (as a percentage) | 100.00% |
BUSINESS ACQUISITIONS - Purchas
BUSINESS ACQUISITIONS - Purchase price allocation (Details) - RUB (₽) ₽ in Thousands | Mar. 31, 2021 | Feb. 28, 2022 | May 31, 2021 | Apr. 30, 2021 | Dec. 31, 2021 | Jul. 31, 2021 | Jun. 30, 2021 |
Vision Labs | |||||||
Disclosure of business combinations | |||||||
Goodwill | ₽ 3,800,000 | ||||||
Customer base | 1,726,000 | ||||||
Other intangible assets | 1,434,000 | ||||||
Property, plant and equipment | 86,000 | ||||||
Cash and cash equivalents | 211,000 | ||||||
Current assets | 266,000 | ||||||
Other non-current assets | 53,000 | ||||||
Current liabilities | (447,000) | ||||||
Non-current liabilities | (606,000) | ||||||
Total consideration | 6,523,000 | ||||||
Fair value of contingent consideration | 621,000 | ||||||
Fair value of stake in Group's subsidiary | 659,000 | ||||||
Cash paid or payable | ₽ 5,243,000 | ||||||
Amortization period | 7 years | ||||||
Percentage of voting equity interests acquired | 100.00% | ||||||
Consideration paid | ₽ 6,523,000 | ||||||
MTT | |||||||
Disclosure of business combinations | |||||||
Goodwill | ₽ 2,984,000 | ||||||
Trademark | 530,000 | ||||||
Customer base | 827,000 | ||||||
Other intangible assets | 590,000 | ||||||
Property, plant and equipment | 588,000 | ||||||
Cash and cash equivalents | 340,000 | ||||||
Current assets | 3,056,000 | ||||||
Other non-current assets | 254,000 | ||||||
Current liabilities | (2,656,000) | ||||||
Non-current liabilities | (715,000) | ||||||
Total consideration | 5,798,000 | ||||||
Fair value of offset financial assets | 1,958,000 | ||||||
Deferred payment | 160,000 | ||||||
Cash paid or payable | ₽ 3,680,000 | ||||||
Amortization period | 3 years | ||||||
Percentage of voting equity interests acquired | 100.00% | ||||||
Zelenaya Tochka Group | |||||||
Disclosure of business combinations | |||||||
Goodwill | ₽ 1,353,000 | ||||||
Trademark | 12,000 | ||||||
Customer base | 320,000 | ||||||
Other intangible assets | 24,000 | ||||||
Property, plant and equipment | 623,000 | ||||||
Cash and cash equivalents | 152,000 | ||||||
Current assets | 1,417,000 | ||||||
Other non-current assets | 43,000 | ||||||
Current liabilities | (725,000) | ||||||
Non-current liabilities | (118,000) | ||||||
Total consideration | 3,101,000 | ||||||
Fair value of previously held equity interest | 1,582,000 | ||||||
Deferred payment | 7,000 | ||||||
Cash paid or payable | 1,512,000 | ||||||
Amortization period | 5 years | ||||||
Zelenaya Tochka Group Achemar Holdings Ltd | |||||||
Disclosure of business combinations | |||||||
Fair value of previously held equity interest | ₽ 1,582,000 | ||||||
Proportion of ownership interest in subsidiary | 100.00% | ||||||
Proportion of ownership interest in joint venture ( in percentage) | 51.00% | ||||||
Green Bush [Member] | |||||||
Disclosure of business combinations | |||||||
Other intangible assets | ₽ 1,000 | ||||||
Property, plant and equipment | 5,171,000 | ||||||
Cash and cash equivalents | 9,000 | ||||||
Current assets | 84,000 | ||||||
Other non-current assets | 17,000 | ||||||
Current liabilities | (26,000) | ||||||
Non-current liabilities | (56,000) | ||||||
Total consideration | 5,200,000 | ||||||
Cash paid or payable | ₽ 5,200,000 | ₽ 5,200,000 | |||||
Percentage of voting equity interests acquired | 100.00% | ||||||
Credit Consulting [Member] | |||||||
Disclosure of business combinations | |||||||
Goodwill | ₽ 46,000 | ||||||
Other intangible assets | 4,000 | ||||||
Cash and cash equivalents | 3,000 | ||||||
Current assets | 18,000 | ||||||
Current liabilities | (11,000) | ||||||
Total consideration | 60,000 | ||||||
Fair value of contingent consideration | ₽ 60,000 | ||||||
Period for payment of contingent consideration | 5 years | ||||||
Percentage of voting equity interests acquired | 100.00% | ||||||
Consideration paid | ₽ 10 |
BUSINESS ACQUISITIONS - Acquisi
BUSINESS ACQUISITIONS - Acquisitions of assets and liabilities pertaining to the disposal group and reconciliation of disposal (Details) - RUB (₽) ₽ in Millions | 1 Months Ended | ||
Feb. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about business combination [line items] | |||
Current assets | ₽ 263,300 | ₽ 262,354 | |
Non-current assets | 752,518 | 656,849 | |
TOTAL ASSETS | 1,015,818 | 919,203 | |
Current liabilities | (473,420) | (328,614) | |
Non-current liabilities | (527,794) | (557,899) | |
Accumulated other comprehensive income | ₽ 10,207 | ₽ 9,010 | |
STS-Ukraine | |||
Disclosure of detailed information about business combination [line items] | |||
Sale of ownership interest | 100.00% | ||
Current assets | ₽ 282 | ||
Non-current assets | 51 | ||
TOTAL ASSETS | 333 | ||
Current liabilities | (275) | ||
Non-current liabilities | (36) | ||
Total liabilities | (311) | ||
Accumulated other comprehensive income | 83 | ||
Consideration paid | (52) | ||
Loss on disposal | ₽ 53 |
BUSINESS ACQUISITIONS - Acqui_2
BUSINESS ACQUISITIONS - Acquisitions of subsidiaries under common control (Details) - RUB (₽) ₽ in Millions | 1 Months Ended | 5 Months Ended | ||
Sep. 30, 2021 | Aug. 31, 2019 | Apr. 30, 2019 | Aug. 31, 2019 | |
Disclosure of business combinations | ||||
Consideration paid net of cash acquired | ₽ 2,359 | |||
Cash acquired | 12 | |||
Assets acquired other than cash | 1,119 | |||
Liabilities assumed | ₽ 58 | |||
Sistema Capital | ||||
Disclosure of business combinations | ||||
Consideration paid | ₽ 3,500 | |||
Consideration paid net of cash acquired | 3,474 | |||
Cash acquired | 26 | |||
Assets acquired other than cash | 1,185 | |||
Liabilities assumed | ₽ 90 | |||
Percentage of voting equity interests acquired | 70.00% | |||
Kinopolis | ||||
Disclosure of business combinations | ||||
Consideration paid | ₽ 2,042 | |||
Consideration paid net of cash acquired | 2,030 | |||
Cash acquired | 12 | |||
Assets acquired other than cash | 1,017 | |||
Liabilities assumed | ₽ 58 | |||
Narodnoje | ||||
Disclosure of business combinations | ||||
Consideration paid | ₽ 329 | |||
Consideration paid net of cash acquired | 329 | |||
Assets acquired other than cash | ₽ 102 |
BUSINESS ACQUISITIONS - Acqui_3
BUSINESS ACQUISITIONS - Acquisition of Kulturnaya Sluzhba, MDTZK, ProgTech and IT-Grad (Details) - Contingent consideration - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
KS | ||||
Fair values of the identifiable assets and liabilities acquired | ||||
Fair value of contingent consideration | ₽ 907 | ₽ 907 | ₽ 907 | |
IT-Grad | ||||
Fair values of the identifiable assets and liabilities acquired | ||||
Fair value of contingent consideration | ₽ 61 |
BUSINESS ACQUISITIONS - Acqui_4
BUSINESS ACQUISITIONS - Acquisition of Stopol (Details) - Stopol - RUB (₽) ₽ in Millions | Jul. 31, 2020 | Jun. 30, 2020 |
Disclosure of business combinations | ||
Ownership interest acquired (as a percentage) | 100.00% | |
Fair values of the identifiable assets and liabilities acquired | ||
Goodwill | ₽ 282 | |
Other non-current assets | 2 | |
Current assets | 230 | |
Cash and cash equivalents | 69 | |
Current liabilities | (262) | |
Total consideration | 321 | |
Fair value of contingent consideration | 9 | |
Cash paid or payable | ₽ 312 | ₽ 312 |
BUSINESS ACQUISITIONS - Acqui_5
BUSINESS ACQUISITIONS - Acquisition of RIKT (Details) - RIKT - RUB (₽) ₽ in Millions | Jun. 30, 2019 | Sep. 30, 2019 |
Disclosure of business combinations | ||
Ownership interest acquired (as a percentage) | 97.40% | 100.00% |
Fair values of the identifiable assets and liabilities acquired | ||
Goodwill | ₽ 105 | |
Other intangible assets | 172 | |
Property, plant and equipment | 118 | |
Trade and other receivables | 12 | |
Cash and cash equivalents | 6 | |
Other current assets | 9 | |
Other non-current assets | 14 | |
Current liabilities | (37) | |
Non-current liabilities | (39) | |
Consideration transferred (in cash) | ₽ 360 | |
Amortization period | 12 years |
BUSINESS ACQUISITIONS - Liabili
BUSINESS ACQUISITIONS - Liabilities and indemnification assets in respect to deferred payments (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
KS | Contingent consideration | |||
Disclosure of business combinations | |||
Liabilities at the beginning | ₽ 907 | ₽ 907 | ₽ 907 |
Measurement period adjustment | 66 | ||
Gain on remeasurement of previously held interest upon acquisition | 542 | (66) | |
Payment | 365 | ||
Liabilities at the end | 907 | 907 | |
KS | Deferred payment | |||
Disclosure of business combinations | |||
Liabilities at the beginning | 118 | ||
Reversal of indemnity | 259 | ||
Gain on remeasurement of previously held interest upon acquisition | (22) | ||
Payment | ₽ 163 | ||
MDTZK | Deferred payment | |||
Disclosure of business combinations | |||
Liabilities at the beginning | 24 | ||
Initial recognition of deferred payment/contingent consideration | (40) | ||
Less: Provision for tax liabilities related to pre-acquisition period | 3 | 26 | |
Reversal of tax provision | (10) | ||
Liabilities at the end | 21 | ₽ 24 | |
ProgTech | Deferred payment | |||
Disclosure of business combinations | |||
Initial recognition of deferred payment/contingent consideration | (7) | ||
Payment | 7 | ||
IT-Grad | Contingent consideration | |||
Disclosure of business combinations | |||
Initial recognition of deferred payment/contingent consideration | (60) | ||
Gain on remeasurement of previously held interest upon acquisition | (1) | ||
Liabilities at the end | 61 | ||
Stopol | Contingent consideration | |||
Disclosure of business combinations | |||
Initial recognition of deferred payment/contingent consideration | (160) | ||
Liabilities at the end | ₽ 160 |
BUSINESS ACQUISITIONS - Acqui_6
BUSINESS ACQUISITIONS - Acquisitions of subsidiaries under common control (Details) ₽ in Millions | 5 Months Ended |
Aug. 31, 2019RUB (₽) | |
BUSINESS ACQUISITIONS | |
Consideration paid net of cash acquired | ₽ 2,359 |
Cash acquired | 12 |
Assets acquired other than cash | 1,119 |
Liabilities assumed | ₽ 58 |
BUSINESS ACQUISITIONS - Pro for
BUSINESS ACQUISITIONS - Pro forma results of operations (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Companies acquired in 2021 | |||
Business combinations actual and pro forma results of operations | |||
Net revenues | ₽ 537,867 | ||
Net income | 64,399 | ||
Revenue of acquired entities since acquisition | 5,341 | ||
Net (loss)/income of acquired entities since acquisition | ₽ 25 | ||
Companies acquired in 2020 | |||
Business combinations actual and pro forma results of operations | |||
Net revenues | ₽ 495,273 | ||
Net income | 62,079 | ||
Revenue of acquired entities since acquisition | 355 | ||
Net (loss)/income of acquired entities since acquisition | ₽ 25 | ||
Companies acquired in 2019 | |||
Business combinations actual and pro forma results of operations | |||
Net revenues | ₽ 476,257 | ||
Net income | 55,101 | ||
Revenue of acquired entities since acquisition | 238 | ||
Net (loss)/income of acquired entities since acquisition | ₽ (15) |
SEGMENT INFORMATION - Financial
SEGMENT INFORMATION - Financial information by reportable segments (Details) ₽ in Millions | Oct. 30, 2020 | Dec. 31, 2021RUB (₽)segment | Dec. 31, 2020RUB (₽) | Dec. 31, 2019RUB (₽) |
SEGMENT INFORMATION | ||||
Number of new segments | segment | 2 | |||
Revenue | ||||
Revenue | ₽ 534,403 | ₽ 494,926 | ₽ 470,605 | |
OIBDA | 229,357 | 215,150 | 211,624 | |
Depreciation and amortization | (111,088) | (100,234) | (96,195) | |
Impairment of non-current assets | 10 | (2,023) | 148 | |
Operating profit | 118,279 | 112,893 | 115,577 | |
Operating segments | ||||
Revenue | ||||
Revenue | 534,403 | 494,926 | 470,605 | |
External Customers | ||||
Revenue | ||||
Revenue | 534,403 | 494,926 | 470,605 | |
Discontinued operations | ||||
SEGMENT INFORMATION | ||||
Percentage of equity interest disposed off | 100.00% | |||
Total of reportable segments | ||||
Revenue | ||||
OIBDA | 213,028 | 204,773 | 178,584 | |
Total of reportable segments | Intersegment | ||||
Revenue | ||||
Revenue | 6,909 | 6,709 | 11,287 | |
Total of reportable segments | Operating segments | ||||
Revenue | ||||
Revenue | 497,920 | 465,541 | 422,288 | |
Total of reportable segments | External Customers | ||||
Revenue | ||||
Revenue | 491,011 | 458,832 | 411,001 | |
Telecom | ||||
Revenue | ||||
OIBDA | 204,194 | 200,911 | 174,010 | |
Telecom | Intersegment | ||||
Revenue | ||||
Revenue | 4,138 | 4,260 | 9,406 | |
Telecom | Operating segments | ||||
Revenue | ||||
Revenue | 448,313 | 429,319 | 391,103 | |
Telecom | External Customers | ||||
Revenue | ||||
Revenue | 444,175 | 425,059 | 381,697 | |
Fintech [Member] | ||||
Revenue | ||||
OIBDA | 8,834 | 3,862 | 4,574 | |
Fintech [Member] | Intersegment | ||||
Revenue | ||||
Revenue | 2,771 | 2,449 | 1,881 | |
Fintech [Member] | Operating segments | ||||
Revenue | ||||
Revenue | 49,607 | 36,222 | 31,185 | |
Fintech [Member] | External Customers | ||||
Revenue | ||||
Revenue | 46,836 | 33,773 | 29,304 | |
Other | ||||
Revenue | ||||
OIBDA | 24,700 | 18,026 | 39,243 | |
Other | Intersegment | ||||
Revenue | ||||
Revenue | 19,527 | 13,130 | 12,063 | |
Other | Operating segments | ||||
Revenue | ||||
Revenue | 62,823 | 49,132 | 71,573 | |
Other | External Customers | ||||
Revenue | ||||
Revenue | 43,296 | 36,002 | 59,510 | |
HQ and elimination | ||||
Revenue | ||||
OIBDA | (8,371) | (7,649) | (6,203) | |
HQ and elimination | Intersegment | ||||
Revenue | ||||
Revenue | (26,436) | (19,839) | (23,350) | |
HQ and elimination | Operating segments | ||||
Revenue | ||||
Revenue | (26,340) | (19,747) | (23,256) | |
HQ and elimination | External Customers | ||||
Revenue | ||||
Revenue | ₽ 96 | ₽ 92 | ₽ 94 |
SEGMENT INFORMATION - Financi_2
SEGMENT INFORMATION - Financial information by geographic areas (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | |||
Revenue | ₽ 534,403 | ₽ 494,926 | ₽ 470,605 |
Non-current assets | |||
Non-current assets: | 454,201 | 412,948 | |
Russia | |||
Revenue | |||
Revenue | 520,671 | 481,536 | 459,415 |
Non-current assets | |||
Non-current assets: | 442,655 | 401,743 | |
Other | |||
Revenue | |||
Revenue | 13,732 | 13,390 | ₽ 11,190 |
Non-current assets | |||
Non-current assets: | ₽ 11,546 | ₽ 11,205 |
SEGMENT INFORMATION - Disaggreg
SEGMENT INFORMATION - Disaggregation of revenue (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of revenue | |||
Revenue | ₽ 534,403 | ₽ 494,926 | ₽ 470,605 |
External Customers | |||
Disaggregation of revenue | |||
Revenue | 534,403 | 494,926 | 470,605 |
External Customers | Recognised over time | |||
Disaggregation of revenue | |||
Revenue | 438,357 | 416,042 | 399,170 |
External Customers | Recognised at point of time | |||
Disaggregation of revenue | |||
Revenue | 96,046 | 78,884 | 71,435 |
Connectivity services | |||
Disaggregation of revenue | |||
Revenue | 405,624 | 388,117 | 373,380 |
Sales of goods | |||
Disaggregation of revenue | |||
Revenue | 76,726 | 69,478 | 64,127 |
Fintech services | |||
Disaggregation of revenue | |||
Revenue | 46,836 | 33,773 | 29,304 |
Other services | |||
Disaggregation of revenue | |||
Revenue | 5,217 | 3,558 | 3,794 |
Total of reportable segments | External Customers | |||
Disaggregation of revenue | |||
Revenue | 491,011 | 458,832 | 411,001 |
Total of reportable segments | External Customers | Recognised over time | |||
Disaggregation of revenue | |||
Revenue | 404,299 | 387,931 | 346,016 |
Total of reportable segments | External Customers | Recognised at point of time | |||
Disaggregation of revenue | |||
Revenue | 86,712 | 70,901 | 64,985 |
Total of reportable segments | Connectivity services | |||
Disaggregation of revenue | |||
Revenue | 375,718 | 363,131 | 323,551 |
Total of reportable segments | Sales of goods | |||
Disaggregation of revenue | |||
Revenue | 67,392 | 61,495 | 57,677 |
Total of reportable segments | Fintech services | |||
Disaggregation of revenue | |||
Revenue | 46,836 | 33,773 | 29,304 |
Total of reportable segments | Other services | |||
Disaggregation of revenue | |||
Revenue | 1,065 | 433 | 469 |
Fintech [Member] | External Customers | |||
Disaggregation of revenue | |||
Revenue | 46,836 | 33,773 | 29,304 |
Fintech [Member] | External Customers | Recognised over time | |||
Disaggregation of revenue | |||
Revenue | 27,516 | 24,367 | 21,996 |
Fintech [Member] | External Customers | Recognised at point of time | |||
Disaggregation of revenue | |||
Revenue | 19,320 | 9,406 | 7,308 |
Fintech [Member] | Fintech services | |||
Disaggregation of revenue | |||
Revenue | 46,836 | 33,773 | 29,304 |
Telecom | External Customers | |||
Disaggregation of revenue | |||
Revenue | 444,175 | 425,059 | 381,697 |
Telecom | External Customers | Recognised over time | |||
Disaggregation of revenue | |||
Revenue | 376,783 | 363,564 | 324,020 |
Telecom | External Customers | Recognised at point of time | |||
Disaggregation of revenue | |||
Revenue | 67,392 | 61,495 | 57,677 |
Telecom | Connectivity services | |||
Disaggregation of revenue | |||
Revenue | 375,718 | 363,131 | 323,551 |
Telecom | Sales of goods | |||
Disaggregation of revenue | |||
Revenue | 67,392 | 61,495 | 57,677 |
Telecom | Other services | |||
Disaggregation of revenue | |||
Revenue | 1,065 | 433 | 469 |
Other | External Customers | |||
Disaggregation of revenue | |||
Revenue | 43,296 | 36,002 | 59,510 |
Other | External Customers | Recognised over time | |||
Disaggregation of revenue | |||
Revenue | 33,962 | 28,019 | 53,060 |
Other | External Customers | Recognised at point of time | |||
Disaggregation of revenue | |||
Revenue | 9,334 | 7,983 | 6,450 |
Other | Connectivity services | |||
Disaggregation of revenue | |||
Revenue | 29,810 | 24,894 | 49,735 |
Other | Sales of goods | |||
Disaggregation of revenue | |||
Revenue | 9,334 | 7,983 | 6,450 |
Other | Other services | |||
Disaggregation of revenue | |||
Revenue | 4,152 | 3,125 | 3,325 |
HQ and elimination | External Customers | |||
Disaggregation of revenue | |||
Revenue | 96 | 92 | 94 |
HQ and elimination | External Customers | Recognised over time | |||
Disaggregation of revenue | |||
Revenue | 96 | 92 | 94 |
HQ and elimination | Connectivity services | |||
Disaggregation of revenue | |||
Revenue | 96 | 92 | 94 |
Intersegment | Total of reportable segments | |||
Disaggregation of revenue | |||
Revenue | 6,909 | 6,709 | 11,287 |
Intersegment | Fintech [Member] | |||
Disaggregation of revenue | |||
Revenue | 2,771 | 2,449 | 1,881 |
Intersegment | Telecom | |||
Disaggregation of revenue | |||
Revenue | 4,138 | 4,260 | 9,406 |
Intersegment | Other | |||
Disaggregation of revenue | |||
Revenue | 19,527 | 13,130 | 12,063 |
Intersegment | HQ and elimination | |||
Disaggregation of revenue | |||
Revenue | (26,436) | (19,839) | (23,350) |
Operating segments | |||
Disaggregation of revenue | |||
Revenue | 534,403 | 494,926 | 470,605 |
Operating segments | Total of reportable segments | |||
Disaggregation of revenue | |||
Revenue | 497,920 | 465,541 | 422,288 |
Operating segments | Fintech [Member] | |||
Disaggregation of revenue | |||
Revenue | 49,607 | 36,222 | 31,185 |
Operating segments | Telecom | |||
Disaggregation of revenue | |||
Revenue | 448,313 | 429,319 | 391,103 |
Operating segments | Other | |||
Disaggregation of revenue | |||
Revenue | 62,823 | 49,132 | 71,573 |
Operating segments | HQ and elimination | |||
Disaggregation of revenue | |||
Revenue | ₽ (26,340) | ₽ (19,747) | ₽ (23,256) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract balances (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Receivables | ₽ 32,361 | ₽ 31,452 | |
Contract assets | 189 | 53 | |
Total assets | 32,550 | 31,505 | |
Less current portion | (20,638) | (29,342) | |
Total non-current assets | 11,912 | 2,163 | |
Contract liabilities | (23,598) | (21,842) | ₽ (21,307) |
Less current portion | 22,621 | 21,125 | |
Total non-current liabilities | (977) | (717) | |
Significant changes in the contract assets and the contract liabilities balances | |||
Contract liabilities at beginning of period | (21,842) | (21,307) | |
Revenue recognised that was included in the contract liability balance at the beginning of the period | 18,712 | 17,531 | |
Increase due to cash received, excluding amount recognised as revenue during the period | 20,468 | (18,438) | |
Disposal | (7,947) | ||
Contract liabilities at end of period | (23,598) | (21,842) | ₽ (21,307) |
NVision Group | |||
Significant changes in the contract assets and the contract liabilities balances | |||
Disposal | 372 | ||
Connectivity services | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Revenue related to performance obligations | 22,064 | ||
Transaction price assigned to unsatisfied performance obligations | 1,150 | ||
Connectivity services | 2022 | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Revenue related to performance obligations | 21,087 | ||
Transaction price assigned to unsatisfied performance obligations | 312 | ||
Connectivity services | 2023-2027 | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Revenue related to performance obligations | 901 | ||
Transaction price assigned to unsatisfied performance obligations | 519 | ||
Connectivity services | 2028-2032 | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Revenue related to performance obligations | 76 | ||
Transaction price assigned to unsatisfied performance obligations | 195 | ||
Connectivity services | After 2032 | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Transaction price assigned to unsatisfied performance obligations | 124 | ||
Other services | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Contract liabilities | (1,083) | (694) | |
Significant changes in the contract assets and the contract liabilities balances | |||
Contract liabilities at beginning of period | (694) | ||
Contract liabilities at end of period | (1,083) | (694) | |
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Revenue related to performance obligations | 1,083 | ||
Other services | 2022 | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Revenue related to performance obligations | 1,083 | ||
Loyalty programme | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Contract liabilities | (451) | (434) | |
Significant changes in the contract assets and the contract liabilities balances | |||
Contract liabilities at beginning of period | (434) | ||
Contract liabilities at end of period | (451) | (434) | |
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Revenue related to performance obligations | 451 | ||
Loyalty programme | 2022 | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Revenue related to performance obligations | 451 | ||
Integration services | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Transaction price assigned to unsatisfied performance obligations | 333 | ||
Integration services | 2022 | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Transaction price assigned to unsatisfied performance obligations | 111 | ||
Integration services | 2023-2027 | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Transaction price assigned to unsatisfied performance obligations | 178 | ||
Integration services | 2028-2032 | |||
Revenue related to performance obligations that are unsatisfied (or partially unsatisfied) | |||
Transaction price assigned to unsatisfied performance obligations | 44 | ||
Mobile and fixed telecommunication services | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Contract liabilities | (22,064) | (20,714) | |
Significant changes in the contract assets and the contract liabilities balances | |||
Contract liabilities at beginning of period | (20,714) | ||
Contract liabilities at end of period | ₽ (22,064) | ₽ (20,714) |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Cost to obtain and fulfill a contract (Details) - RUB (₽) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets recognised from costs to obtain or fulfil contracts with customers | |||
Amortization expense related to cost to obtain or fulfill contracts | ₽ 4,076,000,000 | ₽ 3,819,000,000 | ₽ 3,940,000,000 |
Impairment loss related to costs capitalized | 0 | 0 | ₽ 0 |
Cost-to-obtain contracts | |||
Assets recognised from costs to obtain or fulfil contracts with customers | |||
Gross book value | 14,633,000,000 | 14,268,000,000 | |
Accumulated amortization | (6,736,000,000) | (6,600,000,000) | |
Cost to fulfill contracts | |||
Assets recognised from costs to obtain or fulfil contracts with customers | |||
Gross book value | 5,240,000,000 | 4,081,000,000 | |
Accumulated amortization | ₽ (2,279,000,000) | ₽ (1,628,000,000) |
SELLING, GENERAL AND ADMINIST_3
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | |||
Salaries and social contributions | ₽ 54,285 | ₽ 48,865 | ₽ 50,451 |
Advertising and marketing expenses | 12,539 | 10,652 | 10,930 |
General and administrative expenses | 8,085 | 7,526 | 7,653 |
Universal service fund | 3,813 | 3,670 | 3,587 |
Consulting expenses | 3,626 | 3,418 | 2,626 |
Cash collection commission | 3,533 | 3,645 | 3,504 |
Dealers commission | 3,434 | 3,385 | 3,081 |
Utilities and maintenance | 2,550 | 2,255 | 2,809 |
Taxes other than income tax | 1,062 | 1,845 | 2,486 |
Other personnel expenses | 1,857 | 1,546 | 1,664 |
Other | 1,455 | 1,176 | 1,142 |
Total | ₽ 96,239 | ₽ 87,983 | ₽ 89,933 |
FINANCE INCOME AND COSTS (Detai
FINANCE INCOME AND COSTS (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest expense: | |||
Loans and notes | ₽ 29,432 | ₽ 28,174 | ₽ 30,105 |
Amortization of debt issuance costs | 109 | 97 | 489 |
Lease obligations | 11,820 | 12,277 | 13,416 |
Provisions: unwinding of discount | 165 | 138 | 113 |
Total interest expense | 41,526 | 40,686 | 44,123 |
Loss on financial instruments | 373 | 780 | |
Other finance costs | 143 | 85 | 151 |
Total finance costs | 41,669 | 41,144 | 45,054 |
Less: amounts capitalized on qualifying assets | (533) | (426) | (550) |
Debt modification/derecognition and other loss | 216 | 1,366 | 2,862 |
Finance costs | 41,352 | 42,084 | 47,366 |
Finance income on loans and receivables: | |||
Interest income on bank deposits | 1,468 | 2,282 | 3,318 |
Interest income on loans issued | 52 | 17 | 91 |
Other finance income | 998 | 1,138 | 943 |
Finance income | 2,518 | 3,437 | 4,352 |
Net finance costs | ₽ 38,834 | ₽ 38,647 | ₽ 43,014 |
Annual weighted average capitalization rates | 6.80% | 6.90% | 8.10% |
OTHER NON - OPERATING (INCOME)
OTHER NON - OPERATING (INCOME) EXPENSES (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
OTHER NON-OPERATING (INCOME)/EXPENSES | |||
Net forex exchange (gain) / loss | ₽ 560 | ₽ 10,380 | ₽ (5,266) |
Loss/(gain) arising on derivatives | 345 | (13,443) | 8,297 |
Net gain/(loss) arising on financial assets measured at FVTPL | (139) | (1,893) | 528 |
Net gain/(loss) arising on financial liabilities measured at FVTPL | (53) | 1,197 | |
Impairment of investments and loans given | 1,392 | 616 | |
Other | (342) | 553 | 2,449 |
Total | ₽ 424 | ₽ (3,064) | ₽ 7,821 |
DISCONTINUED OPERATIONS - Carry
DISCONTINUED OPERATIONS - Carrying amounts of net assets and reconciliation of the loss on disposal (Details) ₽ in Millions, $ in Millions | Oct. 30, 2020RUB (₽) | Dec. 03, 2019RUB (₽) | Dec. 03, 2019USD ($) | Nov. 22, 2019 | Sep. 30, 2020RUB (₽) | Sep. 30, 2020USD ($) | Jun. 30, 2020RUB (₽) | Jun. 30, 2020USD ($) | Dec. 31, 2019RUB (₽) | Dec. 31, 2019USD ($) | Dec. 31, 2020RUB (₽) | Aug. 31, 2019RUB (₽) | Dec. 31, 2021RUB (₽) | Dec. 31, 2018RUB (₽) |
Carrying amounts of Preludium B.V and Nvision Group of net assets and reconciliation of the loss on disposal | ||||||||||||||
Property, plant and equipment | ₽ 284,804 | ₽ 311,250 | ||||||||||||
Right-of-use assets | 130,503 | 132,343 | ||||||||||||
Goodwill. | ₽ 38,675 | 38,041 | 42,819 | |||||||||||
Other non-current assets | 5,749 | 5,790 | ||||||||||||
Other current assets | 1,320 | 1,862 | ||||||||||||
Cash and cash equivalents | 38,070 | 85,405 | 40,590 | ₽ 84,075 | ||||||||||
Non-current liabilities | (557,899) | (527,794) | ||||||||||||
Current liabilities | (328,614) | (473,420) | ||||||||||||
Accumulated other comprehensive loss | (9,010) | (10,207) | ||||||||||||
Consideration received in the form of cash and cash equivalents | ₽ 2,359 | |||||||||||||
Less: cash and cash equivalents disposed of | ₽ 12 | |||||||||||||
Preludium B.V. | ||||||||||||||
Carrying amounts of Preludium B.V and Nvision Group of net assets and reconciliation of the loss on disposal | ||||||||||||||
Sale of stock, percentage of ownership sold | 100.00% | |||||||||||||
Property, plant and equipment | ₽ 26,037 | |||||||||||||
Right-of-use assets | 8,175 | |||||||||||||
Intangible assets | 18,124 | |||||||||||||
Goodwill. | 114 | |||||||||||||
Other non-current assets | 1,534 | |||||||||||||
Other current assets | 10,760 | |||||||||||||
Cash and cash equivalents | 4,181 | |||||||||||||
Non-current liabilities | (9,009) | |||||||||||||
Current liabilities | (17,979) | |||||||||||||
Accumulated other comprehensive loss | 7,948 | |||||||||||||
Consideration paid | (44,386) | |||||||||||||
Consideration received in the form of cash and cash equivalents | (41,567) | $ (645) | ||||||||||||
Deferred consideration | (774) | (12) | ₽ (897) | $ (12) | ||||||||||
Fair value of contingent consideration (variable earn-out) | (2,045) | $ (32) | ||||||||||||
Loss on disposal | (5,499) | |||||||||||||
Net cash inflow arising on disposal: | 37,386 | |||||||||||||
Cash consideration received | 41,567 | ₽ 41,567 | $ 645 | |||||||||||
Less: cash and cash equivalents disposed of | (4,181) | |||||||||||||
Additional income recognized upon adjustments | ₽ 2,101 | $ 28 | ||||||||||||
Net income resulting from fair value measurement | ₽ 2,101 | $ 28 | ||||||||||||
Preludium B.V. | Contingent consideration | ||||||||||||||
Carrying amounts of Preludium B.V and Nvision Group of net assets and reconciliation of the loss on disposal | ||||||||||||||
Financial assets at fair value | ₽ 2,045 | 2,631 | ₽ 1,867 | |||||||||||
NVision Group | ||||||||||||||
Carrying amounts of Preludium B.V and Nvision Group of net assets and reconciliation of the loss on disposal | ||||||||||||||
Sale of stock, percentage of ownership sold | 100.00% | |||||||||||||
Property, plant and equipment | ₽ 95 | |||||||||||||
Intangible assets | 245 | |||||||||||||
Other non-current assets | 220 | |||||||||||||
Other current assets | 2,912 | |||||||||||||
Cash and cash equivalents | 285 | |||||||||||||
Non-current liabilities | (98) | |||||||||||||
Current liabilities | (3,281) | |||||||||||||
Accumulated other comprehensive loss | 3 | |||||||||||||
Consideration paid | (369) | |||||||||||||
Consideration received in the form of cash and cash equivalents | (369) | ₽ (369) | ||||||||||||
Loss on disposal | 12 | |||||||||||||
Net cash inflow arising on disposal: | 84 | |||||||||||||
Cash consideration received | 369 | |||||||||||||
Less: cash and cash equivalents disposed of | ₽ (285) |
DISCONTINUED OPERATIONS - Dispo
DISCONTINUED OPERATIONS - Disposal (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Results of discontinued operation | |||
Revenue | ₽ 534,403 | ₽ 494,926 | ₽ 470,605 |
Profit/(Loss) before tax | 79,202 | 77,583 | 68,238 |
Attributable tax expense | 0 | 1,003 | (1,935) |
Net income attributable to discontinued operations | 470 | 616 | 2,528 |
Preludium B.V. | |||
Results of discontinued operation | |||
Revenue | 36,675 | ||
Expenses | (28,564) | ||
Profit/(Loss) before tax | 8,111 | ||
Attributable tax expense | (2,018) | ||
Profit/(Loss) for the period | 6,093 | ||
Profit/(Loss) on disposal | 2,101 | (5,499) | |
Currency revaluation loss on deferred consideration | 154 | (30) | |
Earn-out revaluation - fair value measurement | 377 | 645 | 48 |
Earn-out revaluation - Currency revaluation gain/(loss) | 93 | (27) | (80) |
Net income attributable to discontinued operations | 470 | 2,873 | 532 |
Cash flows from (used in) discontinued operation | |||
Net cash (used in)/provided by operating activities | 17,343 | ||
Net cash provided by/(used in) investing activities | 1,234 | 2,998 | (13,046) |
Net cash provided by/(used in) financing activities | (1,114) | ||
NVision Group | |||
Results of discontinued operation | |||
Revenue | 10,051 | 12,898 | |
Expenses | (11,305) | (14,263) | |
Profit/(Loss) before tax | (1,254) | (1,365) | |
Attributable tax expense | (1,003) | (83) | |
Profit/(Loss) for the period | (2,257) | (1,448) | |
Net income attributable to discontinued operations | ₽ 0 | (2,257) | (1,448) |
Cash flows from (used in) discontinued operation | |||
Net cash (used in)/provided by operating activities | (1,466) | (55) | |
Net cash provided by/(used in) investing activities | 664 | 347 | |
Net cash provided by/(used in) financing activities | ₽ 748 | ₽ (372) |
INCOME TAX (Details)
INCOME TAX (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components of income tax expense | |||
Corporate income tax rate | 20.00% | 20.00% | 20.00% |
Current income tax charge | ₽ 20,057 | ₽ 15,170 | ₽ 20,757 |
Prior period tax adjustments | (133) | (509) | (90) |
Total current income tax | 19,924 | 14,661 | 20,667 |
Deferred tax | (4,521) | 1,465 | (5,000) |
Income tax expense on continuing operations | 15,403 | 16,126 | 15,667 |
Tax effect from the discontinued operations | ₽ 0 | ₽ (1,003) | ₽ 1,935 |
Russia | |||
Components of income tax expense | |||
Corporate income tax rate | 20.00% | 20.00% | 20.00% |
Withholding tax rate on dividends paid | 13.00% | 13.00% | 13.00% |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of groups effective income tax (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax disclosure | |||
Statutory income tax rate for the year (as a percentage) | 20.00% | 20.00% | 20.00% |
Adjustments: | |||
Expenses not deductible for tax purposes | 0.10% | 1.30% | 2.10% |
Prior periods tax effects | (0.20%) | (0.70%) | (0.10%) |
Different tax rate of subsidiaries | (0.80%) | (0.80%) | (0.40%) |
Withholding tax on distributed and undistributed profits | 1.60% | 1.50% | 1.90% |
Change in fair value of derivative financial instruments | 0.20% | ||
Changes in recognized deferred tax assets | (0.90%) | (0.10%) | (0.50%) |
Other | (0.40%) | (0.40%) | (0.20%) |
Effective income tax rate | 19.40% | 20.80% | 23.00% |
Russia and Armenia | |||
Income tax disclosure | |||
Statutory income tax rate for the year (as a percentage) | 20.00% | ||
Armenia | |||
Income tax disclosure | |||
Statutory income tax rate for the year (as a percentage) | 18.00% | 18.00% | |
Russia | |||
Income tax disclosure | |||
Statutory income tax rate for the year (as a percentage) | 20.00% | 20.00% | 20.00% |
Turkmenistan | |||
Income tax disclosure | |||
Statutory income tax rate for the year (as a percentage) | 8.00% | 8.00% | 8.00% |
Czech Republic | |||
Income tax disclosure | |||
Statutory income tax rate for the year (as a percentage) | 19.00% | 19.00% | 19.00% |
INCOME TAX - Deferred income ta
INCOME TAX - Deferred income tax assets and liabilities (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
INCOME TAX | |||
Deferred tax assets | ₽ 11,683 | ₽ 8,778 | |
Deferred tax liabilities | (17,901) | (19,191) | |
Net deferred tax liabilities | ₽ (6,218) | ₽ (10,413) | ₽ (7,891) |
INCOME TAX - Movements in the d
INCOME TAX - Movements in the deferred tax assets and liabilities (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | ₽ (10,413) | ₽ (7,891) |
Recognised in profit / loss | 4,521 | (1,462) |
Recognised in other comprehensive income | (20) | (6) |
Effect of disposal | (306) | (1,054) |
Net deferred tax liability at the end of the period | (6,218) | (10,413) |
Property, plant and equipment | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | (18,250) | (17,954) |
Recognised in profit / loss | (1,352) | (318) |
Recognised in other comprehensive income | 32 | 19 |
Effect of disposal | (110) | 3 |
Net deferred tax liability at the end of the period | (19,680) | (18,250) |
Other intangible assets | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | (6,314) | (6,564) |
Recognised in profit / loss | 998 | 314 |
Effect of disposal | (142) | (64) |
Net deferred tax liability at the end of the period | (5,458) | (6,314) |
Potential distributions from/ to Group's subsidiaries/ associates and joint ventures | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | (2,506) | (2,430) |
Recognised in profit / loss | 166 | (42) |
Recognised in other comprehensive income | (86) | (34) |
Net deferred tax liability at the end of the period | (2,426) | (2,506) |
Licenses | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | (1,699) | (1,739) |
Recognised in profit / loss | 24 | 47 |
Recognised in other comprehensive income | (7) | |
Net deferred tax liability at the end of the period | (1,675) | (1,699) |
Customer base | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | (470) | (576) |
Recognised in profit / loss | 107 | 106 |
Effect of disposal | (229) | |
Net deferred tax liability at the end of the period | (592) | (470) |
Capitalization of cost to obtain and fulfill contracts | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | (1,668) | (1,448) |
Recognised in profit / loss | (162) | (220) |
Net deferred tax liability at the end of the period | (1,830) | (1,668) |
Accrued expenses for services | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | 7,158 | 7,929 |
Recognised in profit / loss | 588 | (710) |
Recognised in other comprehensive income | (1) | 5 |
Effect of disposal | 69 | (66) |
Net deferred tax liability at the end of the period | 7,814 | 7,158 |
Write-down of inventories | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | 413 | 681 |
Recognised in profit / loss | (178) | (211) |
Recognised in other comprehensive income | 10 | |
Effect of disposal | 3 | (67) |
Net deferred tax liability at the end of the period | 238 | 413 |
Tax effect of Allowance for ECL | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | 2,713 | 2,947 |
Recognised in profit / loss | 533 | (112) |
Recognised in other comprehensive income | 3 | 3 |
Effect of disposal | 5 | (125) |
Net deferred tax liability at the end of the period | 3,254 | 2,713 |
Tax effect of right-of-use assets | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | (25,686) | (27,433) |
Recognised in profit / loss | (392) | 1,761 |
Recognised in other comprehensive income | 2 | (14) |
Net deferred tax liability at the end of the period | (26,076) | (25,686) |
Lease obligations | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | 29,910 | 30,953 |
Recognised in profit / loss | 1,181 | (1,052) |
Recognised in other comprehensive income | (1) | 12 |
Effect of disposal | 3 | (3) |
Net deferred tax liability at the end of the period | 31,093 | 29,910 |
Loss carryforward | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | 3,961 | 4,634 |
Recognised in profit / loss | 1,801 | 56 |
Effect of disposal | 95 | (729) |
Net deferred tax liability at the end of the period | 5,857 | 3,961 |
Contract liabilities. | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | 1,430 | 1,230 |
Recognised in profit / loss | 176 | 203 |
Effect of disposal | (3) | |
Net deferred tax liability at the end of the period | 1,606 | 1,430 |
Debt modification | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | (123) | (433) |
Recognised in profit / loss | 50 | 310 |
Net deferred tax liability at the end of the period | (73) | (123) |
Hedge and other | ||
Assets / (liabilities) arising from tax effect of: | ||
Net deferred tax liability at the beginning of the period | 718 | 2,312 |
Recognised in profit / loss | 981 | (1,594) |
Recognised in other comprehensive income | 31 | |
Net deferred tax liability at the end of the period | ₽ 1,730 | ₽ 718 |
INCOME TAX - Recognized tax los
INCOME TAX - Recognized tax losses and uncertain income tax positions (Details) - RUB (₽) ₽ in Millions | Nov. 30, 2016 | Nov. 29, 2016 | Dec. 31, 2021 | Dec. 31, 2020 |
INCOME TAX | ||||
Tax losses carry forward period (in years) | 10 years | |||
Maximum percentage of tax base can be reduced by tax losses carry forward for years 2017 - 2020 | 50.00% | |||
Unused tax losses | ₽ 40,898 | ₽ 43,393 | ||
Uncertain income tax positions | ₽ 160 | ₽ 595 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - RUB (₽) ₽ / shares in Units, shares in Thousands, ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Profit for the year from continuing operations attributable to the owners of the company | ₽ 63,003 | ₽ 60,796 | ₽ 51,713 |
Profit for the year from discontinued operations attributable to the owners of the company | ₽ 470 | ₽ 616 | ₽ 2,528 |
Denominator, in thousands: | |||
Weighted-average ordinary shares outstanding | 1,693,244 | 1,760,468 | 1,780,935 |
Employee stock options | 8,541 | 1,310 | 2,682 |
Weighted-average diluted shares outstanding | 1,701,785 | 1,761,778 | 1,783,617 |
Earnings per share - basic, Russian Rubles | ₽ 37.49 | ₽ 34.88 | ₽ 30.46 |
Basic EPS from continuing operations | 37.21 | 34.53 | 29.04 |
Basic EPS from discontinued operations | 0.28 | 0.35 | 1.42 |
Earnings per share - diluted, Russian Rubles | 37.30 | 34.86 | 30.41 |
Diluted EPS from continuing operations | 37.02 | 34.51 | 28.99 |
Diluted EPS from discontinued operations | ₽ 0.28 | ₽ 0.35 | ₽ 1.42 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents | ||||
Total cash and cash equivalents | ₽ 40,590 | ₽ 85,405 | ₽ 38,070 | ₽ 84,075 |
Russian Rubles | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents at banks and on hand | 17,911 | 39,076 | ||
Short-term deposits with an original maturity of less than 92 days | 16,594 | 27,857 | ||
USD | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents at banks and on hand | 1,766 | 10,597 | ||
Euro | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents at banks and on hand | 2,899 | 6,433 | ||
Turkmenian Manat | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents at banks and on hand | 367 | 431 | ||
Other currencies | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents at banks and on hand | 816 | 959 | ||
Short-term deposits with an original maturity of less than 92 days | ₽ 237 | ₽ 52 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Short-term investments | ||
Short-term investments, gross | ₽ 28,975 | ₽ 23,434 |
Allowance for ECL | (3) | |
Total short-term investments | 28,972 | 23,434 |
At amortized cost | ||
Short-term investments | ||
Notes / loans | 6,383 | 1,007 |
Deposits | 1,499 | 1,415 |
At FVTPL | ||
Short-term investments | ||
Mutual funds (Notes 28) | 10,719 | 10,699 |
Assets in Sistema-Capital trust management (Notes 28) | ₽ 10,374 | ₽ 10,313 |
INVESTMENTS IN ASSOCIATES AND_3
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investments in associates and joint ventures | ||
Total investments in associates accounted for using the equity method | ₽ 8,430 | ₽ 8,555 |
Other unquoted companies accounted for at fair value through profit or loss | 305 | |
Total investments in associates | 8,735 | 8,555 |
MTS Belarus | ||
Investments in associates and joint ventures | ||
Total investments in associates accounted for using the equity method | 6,265 | 5,124 |
Zelenaya Tochka Group | ||
Investments in associates and joint ventures | ||
Total investments in associates accounted for using the equity method | 141 | 1,260 |
YouDo | ||
Investments in associates and joint ventures | ||
Total investments in associates accounted for using the equity method | 705 | 724 |
Sistema-Rentnaya Nedvizhimost | ||
Investments in associates and joint ventures | ||
Total investments in associates accounted for using the equity method | 636 | |
Other unquoted companies | ||
Investments in associates and joint ventures | ||
Total investments in associates accounted for using the equity method | ₽ 1,319 | ₽ 811 |
INVESTMENTS IN ASSOCIATES AND_4
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES - MTS Belarus (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Non-current assets | ₽ 752,518 | ₽ 656,849 | |
Current assets | 263,300 | 262,354 | |
Liabilities | |||
Non-current liabilities | (527,794) | (557,899) | |
Current liabilities | (473,420) | (328,614) | |
Statement of profit or loss | |||
Revenue | 534,403 | 494,926 | ₽ 470,605 |
Profit for the year | 64,269 | 62,073 | 55,099 |
Total comprehensive income for the year | 65,466 | 63,717 | 63,530 |
MTS Belarus | |||
ASSETS | |||
Non-current assets | 19,030 | 20,008 | |
Current assets | 15,386 | 12,705 | |
Liabilities | |||
Non-current liabilities | (9,062) | (11,257) | |
Current liabilities | (12,568) | (10,999) | |
Total identifiable net assets | ₽ 12,786 | ₽ 10,457 | |
The Group's share in associate | 49.00% | 49.00% | |
The Group's share of identifiable net assets | ₽ 6,265 | ₽ 5,124 | |
Carrying amount of the Group's interest | 6,265 | 5,124 | |
Statement of profit or loss | |||
Revenue | 39,383 | 36,121 | 32,593 |
Profit for the year | (10,379) | (10,267) | (9,354) |
The Group's share of the profit of the associate for the year | (5,086) | (5,031) | (4,583) |
Other comprehensive income/(loss) for the year (currency translation adjustment) | (183) | 397 | 842 |
Total comprehensive income for the year | (10,562) | (9,870) | (8,512) |
The Group's share of total comprehensive income of the associate for the year | (5,175) | (4,836) | (4,171) |
Dividends received | 4,034 | 4,212 | 3,821 |
Investments in individually insignificant associates and joint ventures | |||
Statement of profit or loss | |||
Profit for the year | 856 | 1,048 | (2,448) |
The Group's share of the profit of the associate for the year | 181 | 273 | (341) |
Total comprehensive income for the year | 856 | 1,048 | (2,448) |
The Group's share of total comprehensive income of the associate for the year | ₽ 181 | ₽ 273 | ₽ (341) |
INVESTMENTS IN ASSOCIATES AND_5
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES - Others (Details) - RUB (₽) ₽ in Millions | Mar. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jul. 31, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investments in associates | |||||||||||||
Proceeds from disposal of ownership interest in associate | ₽ 3,014 | ₽ 2,450 | ₽ 3,067 | ||||||||||
Statement of profit or loss | |||||||||||||
Total interest expense | 41,526 | 40,686 | 44,123 | ||||||||||
Net (income)/loss for the year | 64,269 | 62,073 | 55,099 | ||||||||||
Total comprehensive (loss) / income for the year | ₽ 65,466 | ₽ 63,717 | 63,530 | ||||||||||
LLC Factorin | |||||||||||||
Investments in associates | |||||||||||||
Proportion of ownership interest in joint venture ( in percentage) | 100.00% | ||||||||||||
Zelenaya Tochka Group Achemar Holdings Ltd | |||||||||||||
Investments in associates | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | ||||||||||||
Carrying value of previously held equity interest | ₽ 1,166 | ||||||||||||
Fair value of previously held equity interest | ₽ 1,582 | ||||||||||||
Gain on remeasurement of previously held interest upon acquisition | 416 | ||||||||||||
Proportion of ownership interest in joint venture ( in percentage) | 51.00% | ||||||||||||
Statement of profit or loss | |||||||||||||
Gain on remeasurement of previously held interest upon acquisition | ₽ (416) | ||||||||||||
Achemar Holdings Limited and Clarkia Holdings Limited | |||||||||||||
Investments in associates | |||||||||||||
Total consideration | ₽ 1,370 | ||||||||||||
Purchase price share due to fair value of options | ₽ 166 | ||||||||||||
Proportion of ownership interest in joint venture ( in percentage) | 51.00% | ||||||||||||
Fancy Show | |||||||||||||
Investments in associates | |||||||||||||
Proportion of ownership interest in joint venture ( in percentage) | 36.00% | ||||||||||||
Amaran Limited | |||||||||||||
Investments in associates | |||||||||||||
Total consideration | ₽ 867 | ||||||||||||
Proportion of ownership interest in joint venture ( in percentage) | 51.00% | ||||||||||||
Zelenaya Tochka Group | |||||||||||||
Investments in associates | |||||||||||||
Proportion of ownership interest in subsidiary | 100.00% | 51.00% | |||||||||||
OZON Holdings Limited | |||||||||||||
Investments in associates | |||||||||||||
Proportion of ownership interest sold in associate | 18.69% | ||||||||||||
Proceeds from disposal of ownership interest in associate | ₽ 2,452 | ₽ 2,450 | ₽ 7,902 | ₽ 3,000 | |||||||||
Less: carrying amount of investment on the date of disposal | (4,065) | ||||||||||||
Gain recognized | 3,837 | ||||||||||||
Current tax expense regarding gain recognized on sale of associates | ₽ 420 | ||||||||||||
YouDo | |||||||||||||
Investments in associates | |||||||||||||
The Group's share in associate | 13.68% | ||||||||||||
Total consideration | ₽ 824 | ||||||||||||
YouDo | Maximum | |||||||||||||
Investments in associates | |||||||||||||
The Group's share in associate | 20.00% | ||||||||||||
Sistema-Rentnaya Nedvizhimost | |||||||||||||
Investments in associates | |||||||||||||
Ownership percentage sold | 40.26% | ||||||||||||
Proceeds from sales of investments accounted for using equity method | ₽ 450 | ||||||||||||
SWIPGLOBAL | |||||||||||||
Investments in associates | |||||||||||||
The Group's share in associate | 15.01% | ||||||||||||
Total consideration | ₽ 75 | ||||||||||||
SWIPGLOBAL | Maximum | |||||||||||||
Investments in associates | |||||||||||||
The Group's share in associate | 20.00% | ||||||||||||
Investments in individually insignificant associates and joint ventures | |||||||||||||
Statement of profit or loss | |||||||||||||
Net (income)/loss for the year | ₽ 856 | ₽ 1,048 | (2,448) | ||||||||||
The Group's share of the profit of the associate for the year | 181 | 273 | (341) | ||||||||||
Total comprehensive (loss) / income for the year | 856 | 1,048 | (2,448) | ||||||||||
The Group's share of total comprehensive income of the associate for the year | 181 | 273 | ₽ (341) | ||||||||||
Investments in individually insignificant joint ventures | |||||||||||||
Investments in associates | |||||||||||||
Gain on remeasurement of previously held interest upon acquisition | 415 | ||||||||||||
Statement of profit or loss | |||||||||||||
Net (income)/loss for the year | 114 | 3 | |||||||||||
The Group's share of the profit of the associate for the year | 32 | 17 | |||||||||||
Total comprehensive (loss) / income for the year | 114 | 3 | |||||||||||
Gain on remeasurement of previously held interest upon acquisition | (415) | ||||||||||||
Compensation of losses | (96) | ||||||||||||
The Group's share of total comprehensive income of the associate for the year | ₽ (479) | ₽ 17 |
INVESTMENTS IN ASSOCIATES AND_6
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES - Investments in venture capital associates (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of associates [line items] | |||
Fair value adjustments | ₽ (54) | ₽ 2,101 | ₽ (5,499) |
Total investments in associates measured at fair value through profit or loss | |||
Disclosure of associates [line items] | |||
Investment | 305 | ||
Investments in associates | ₽ 305 |
OTHER INVESTMENTS (Details)
OTHER INVESTMENTS (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other investments | ||
Investments in equity | ₽ 8,735 | ₽ 8,555 |
Other investments (Gross) | 4,593 | 9,492 |
Allowance for ECL | (2) | (4) |
Total other investments | 4,591 | 9,488 |
At amortized cost | ||
Other investments | ||
Debt securities | 2,810 | 8,764 |
Loans and unquoted notes | 555 | 328 |
At FVTPL | ||
Other investments | ||
Investments in equity | ₽ 1,228 | ₽ 400 |
TRADE AND OTHER RECEIVABLES (De
TRADE AND OTHER RECEIVABLES (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Trade and other receivables [abstract] | ||
Subscribers | ₽ 15,240 | ₽ 12,704 |
Receivables from handset sales financing | 12,161 | 15,785 |
Other trade receivables | 6,213 | 4,954 |
Receivables from the sharing agreement | 2,164 | 73 |
Interconnect | 1,640 | 1,794 |
Integration services | 1,584 | 1,512 |
Bonuses from suppliers | 892 | 342 |
Roaming | 800 | 1,072 |
Factoring | 282 | |
Dealers | 161 | 158 |
Other receivables | 2,194 | 1,260 |
Allowance for ECL | (3,536) | (4,623) |
Trade and other receivables, total | 39,795 | 35,031 |
Less non-current portion | (1,898) | (2,163) |
Trade and other receivables, current | ₽ 37,897 | ₽ 32,868 |
TRADE AND OTHER RECEIVABLES - A
TRADE AND OTHER RECEIVABLES - Aging analysis of trade and other accounts receivables (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Age of trade and other accounts receivables that are past due but not impaired | ||
Weighted average loss rate, subscribers and dealers and other trade receivables (as a percent) | 10.00% | 13.00% |
Gross carrying amount, subscribers and dealers and other trade receivables | ₽ 15,401 | ₽ 12,862 |
Weighted average loss rate, receivables other then from subscribers and dealers and handset financing | 7.00% | 12.00% |
Gross carrying amount, receivables other then from subscribers and dealers and handset financing | ₽ 15,769 | ₽ 11,007 |
Weighted average loss rate, handset sales financing (as a percent) | 7.00% | 10.00% |
Gross carrying amount, handset sales financing | ₽ 12,161 | ₽ 15,785 |
Provision matrix | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, subscribers and dealers and other trade receivables | (1,527) | (1,682) |
Individually assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, receivables other then from subscribers and dealers and handset financing | (1,113) | (1,341) |
Collectively assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, handset sales financing | ₽ (896) | ₽ (1,600) |
Current | Not credit impaired | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Weighted average loss rate, subscribers and dealers and other trade receivables (as a percent) | 1.00% | 3.00% |
Gross carrying amount, subscribers and dealers and other trade receivables | ₽ 2,560 | ₽ 2,087 |
Weighted average loss rate, receivables other then from subscribers and dealers and handset financing | 2.00% | 3.00% |
Gross carrying amount, receivables other then from subscribers and dealers and handset financing | ₽ 9,407 | ₽ 7,966 |
Weighted average loss rate, handset sales financing (as a percent) | 2.00% | 2.00% |
Gross carrying amount, handset sales financing | ₽ 10,948 | ₽ 13,943 |
Current | Not credit impaired | Provision matrix | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, subscribers and dealers and other trade receivables | (27) | (62) |
Current | Not credit impaired | Individually assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, receivables other then from subscribers and dealers and handset financing | (193) | (227) |
Current | Not credit impaired | Collectively assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, handset sales financing | ₽ (180) | ₽ (245) |
1 - 30 days past due | Not credit impaired | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Weighted average loss rate, subscribers and dealers and other trade receivables (as a percent) | 3.00% | 5.00% |
Gross carrying amount, subscribers and dealers and other trade receivables | ₽ 10,848 | ₽ 9,029 |
Weighted average loss rate, receivables other then from subscribers and dealers and handset financing | 1.00% | 1.00% |
Gross carrying amount, receivables other then from subscribers and dealers and handset financing | ₽ 2,219 | ₽ 825 |
Weighted average loss rate, handset sales financing (as a percent) | 12.00% | 15.00% |
Gross carrying amount, handset sales financing | ₽ 289 | ₽ 331 |
1 - 30 days past due | Not credit impaired | Provision matrix | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, subscribers and dealers and other trade receivables | (332) | (478) |
1 - 30 days past due | Not credit impaired | Individually assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, receivables other then from subscribers and dealers and handset financing | (8) | (11) |
1 - 30 days past due | Not credit impaired | Collectively assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, handset sales financing | ₽ (34) | ₽ (50) |
31 - 60 days past due | Not credit impaired | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Weighted average loss rate, subscribers and dealers and other trade receivables (as a percent) | 32.00% | 41.00% |
Gross carrying amount, subscribers and dealers and other trade receivables | ₽ 583 | ₽ 466 |
Weighted average loss rate, receivables other then from subscribers and dealers and handset financing | 1.00% | 2.00% |
Gross carrying amount, receivables other then from subscribers and dealers and handset financing | ₽ 1,119 | ₽ 459 |
Weighted average loss rate, handset sales financing (as a percent) | 47.00% | 53.00% |
Gross carrying amount, handset sales financing | ₽ 94 | ₽ 102 |
31 - 60 days past due | Not credit impaired | Provision matrix | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, subscribers and dealers and other trade receivables | (189) | (190) |
31 - 60 days past due | Not credit impaired | Individually assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, receivables other then from subscribers and dealers and handset financing | (16) | (11) |
31 - 60 days past due | Not credit impaired | Collectively assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, handset sales financing | ₽ (45) | ₽ (54) |
60 - 90 days past due | Not credit impaired | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Weighted average loss rate, subscribers and dealers and other trade receivables (as a percent) | 45.00% | 59.00% |
Gross carrying amount, subscribers and dealers and other trade receivables | ₽ 355 | ₽ 384 |
Weighted average loss rate, receivables other then from subscribers and dealers and handset financing | 5.00% | 10.00% |
Gross carrying amount, receivables other then from subscribers and dealers and handset financing | ₽ 624 | ₽ 227 |
Weighted average loss rate, handset sales financing (as a percent) | 58.00% | 65.00% |
Gross carrying amount, handset sales financing | ₽ 74 | ₽ 65 |
60 - 90 days past due | Not credit impaired | Provision matrix | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, subscribers and dealers and other trade receivables | (161) | (225) |
60 - 90 days past due | Not credit impaired | Individually assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, receivables other then from subscribers and dealers and handset financing | (31) | (23) |
60 - 90 days past due | Not credit impaired | Collectively assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, handset sales financing | ₽ (43) | ₽ (43) |
More than 90 days past due | Impaired | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Weighted average loss rate, subscribers and dealers and other trade receivables (as a percent) | 78.00% | 81.00% |
Gross carrying amount, subscribers and dealers and other trade receivables | ₽ 1,055 | ₽ 896 |
Weighted average loss rate, receivables other then from subscribers and dealers and handset financing | 36.00% | 69.00% |
Gross carrying amount, receivables other then from subscribers and dealers and handset financing | ₽ 2,400 | ₽ 1,530 |
Weighted average loss rate, handset sales financing (as a percent) | 78.00% | 90.00% |
Gross carrying amount, handset sales financing | ₽ 756 | ₽ 1,344 |
More than 90 days past due | Impaired | Provision matrix | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, subscribers and dealers and other trade receivables | (818) | (727) |
More than 90 days past due | Impaired | Individually assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, receivables other then from subscribers and dealers and handset financing | (865) | (1,069) |
More than 90 days past due | Impaired | Collectively assessed | ||
Age of trade and other accounts receivables that are past due but not impaired | ||
Loss allowance, handset sales financing | ₽ (594) | ₽ (1,208) |
TRADE AND OTHER RECEIVABLES - C
TRADE AND OTHER RECEIVABLES - Changes in allowance for doubtful accounts receivables (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in the allowance for doubtful accounts receivable | |||
Balance, beginning of the year | ₽ (4,623) | ||
Balance, end of the year | (3,536) | ₽ (4,623) | |
Trade and other receivables | |||
Changes in the allowance for doubtful accounts receivable | |||
Balance, beginning of the year | (4,623) | (4,203) | ₽ (4,318) |
Allowance for ECL | (1,135) | (3,382) | (4,290) |
Accounts receivable written off | 2,232 | 2,719 | 4,276 |
Disposal/(Acquisition) of subsidiaries | (10) | 243 | 129 |
Balance, end of the year | ₽ (3,536) | ₽ (4,623) | ₽ (4,203) |
INVENTORIES (Details)
INVENTORIES (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INVENTORIES | ||
Handsets and accessories | ₽ 15,201 | ₽ 12,827 |
Advertising and other materials | 1,934 | 964 |
Spare parts for telecommunication equipment | 180 | 110 |
SIM cards and prepaid phone cards | 853 | 726 |
TV equipment for resale | 449 | 425 |
Software and equipment for installation and resale | 364 | 152 |
Total inventories | ₽ 18,981 | ₽ 15,204 |
Expected utilization after year end of spare parts for telecommunication equipment, in months | 12 months |
INVENTORIES - Cost of goods (De
INVENTORIES - Cost of goods (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INVENTORIES | |||
Amount of inventories recognized as an expense | ₽ 70,788 | ₽ 62,587 | ₽ 56,761 |
Inventory obsolescence provision | 1,817 | 1,465 | 2,564 |
Reversal of obsolescence provision | (361) | (570) | (453) |
Total cost of goods | ₽ 72,244 | ₽ 63,482 | ₽ 58,872 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Network infrastructure | Minimum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 3 years |
Network infrastructure | Maximum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 50 years |
Other. | Minimum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 3 years |
Other. | Maximum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 20 years |
Buildings | Minimum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 7 years |
Buildings | Maximum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 99 years |
Office equipment | Minimum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 2 years |
Office equipment | Maximum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 7 years |
Vehicles | Minimum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 2 years |
Vehicles | Maximum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 10 years |
Other Office Equipment And Vehicles | Minimum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 2 years |
Other Office Equipment And Vehicles | Maximum | |
Summary of property, plant and equipment expected useful lives | |
Expected useful life | 25 years |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Net book value (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | ₽ 284,804 | ||
Property, plant and equipment at end of period | 311,250 | ₽ 284,804 | |
Amount of compensation from third parties | 2,403 | 1,510 | ₽ 2,034 |
Network and base station equipment | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | 202,866 | ||
Property, plant and equipment at end of period | 213,862 | 202,866 | |
Land and buildings | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | 24,794 | ||
Property, plant and equipment at end of period | 29,240 | 24,794 | |
Office equipment, vehicles and other | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | 27,991 | ||
Property, plant and equipment at end of period | 33,072 | 27,991 | |
Construction in progress and equipment for installation | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | 29,153 | ||
Property, plant and equipment at end of period | 35,076 | 29,153 | |
Gross Book Value | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | 706,907 | 674,320 | 706,711 |
Additions | 78,721 | 75,022 | 69,716 |
Arising on business combinations | 6,383 | 588 | 298 |
Transfer to assets held for sale | (1,044) | (3,402) | (1,018) |
Disposal | (50,161) | (43,400) | (30,575) |
Disposal of Subsidiary | (332) | (73,350) | |
Other | 163 | 736 | 727 |
Foreign exchange differences | 1,498 | 3,375 | 1,811 |
Property, plant and equipment at end of period | 742,467 | 706,907 | 674,320 |
Gross Book Value | Network and base station equipment | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | 575,108 | 560,599 | 593,133 |
Additions | 2,432 | (173) | 4,162 |
Transferred into use | 57,666 | 53,005 | 51,130 |
Arising on business combinations | 973 | 578 | 194 |
Transfer to assets held for sale | (992) | (2,890) | (1,573) |
Disposal | (44,394) | (38,293) | (26,870) |
Disposal of Subsidiary | (62,196) | ||
Other | (341) | (4) | 730 |
Foreign exchange differences | 1,306 | 2,286 | 1,889 |
Property, plant and equipment at end of period | 591,758 | 575,108 | 560,599 |
Gross Book Value | Land and buildings | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | 36,559 | 34,556 | 33,834 |
Additions | 38 | 434 | 39 |
Transferred into use | 748 | 1,317 | 1,803 |
Arising on business combinations | 4,601 | 4 | 27 |
Transfer to assets held for sale | (1) | (475) | 555 |
Disposal | (559) | (447) | (428) |
Disposal of Subsidiary | (2,128) | ||
Other | 482 | 675 | 1,042 |
Foreign exchange differences | 10 | 495 | (188) |
Property, plant and equipment at end of period | 41,878 | 36,559 | 34,556 |
Gross Book Value | Office equipment, vehicles and other | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | 66,087 | 57,269 | 54,287 |
Additions | 801 | 729 | 1,117 |
Transferred into use | 11,499 | 12,286 | 12,919 |
Arising on business combinations | 605 | 6 | 73 |
Transfer to assets held for sale | (24) | (34) | |
Disposal | (5,542) | (4,405) | (3,091) |
Disposal of Subsidiary | (314) | (6,966) | |
Other | 159 | 30 | (1,125) |
Foreign exchange differences | 170 | 520 | 55 |
Property, plant and equipment at end of period | 73,755 | 66,087 | 57,269 |
Gross Book Value | Construction in progress and equipment for installation | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | 29,153 | 21,896 | 25,457 |
Additions | 75,450 | 74,032 | 64,398 |
Transferred into use | (69,913) | (66,608) | (65,852) |
Arising on business combinations | 204 | 4 | |
Transfer to assets held for sale | (27) | (3) | |
Disposal | 334 | (255) | (186) |
Disposal of Subsidiary | (18) | (2,060) | |
Other | (137) | 35 | 80 |
Foreign exchange differences | 12 | 74 | 55 |
Property, plant and equipment at end of period | 35,076 | 29,153 | 21,896 |
Accumulated amortisation and impairment | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | (422,103) | (408,841) | (430,268) |
Charge for the year | (53,139) | (50,069) | (54,117) |
Transfer to assets held for sale | 1,263 | 2,038 | 685 |
Disposal | 43,722 | 37,566 | 29,128 |
Disposal of Subsidiary | 236 | 47,313 | |
Other | 174 | (172) | (950) |
Foreign exchange differences | (1,134) | (2,861) | (632) |
Property, plant and equipment at end of period | (431,217) | (422,103) | (408,841) |
Accumulated amortisation and impairment | Network and base station equipment | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | (372,242) | (362,006) | (380,014) |
Charge for the year | (44,387) | (43,220) | (47,905) |
Transfer to assets held for sale | 1,247 | 1,899 | 762 |
Disposal | 38,225 | 33,058 | 26,163 |
Disposal of Subsidiary | 40,717 | ||
Other | 277 | (5) | (962) |
Foreign exchange differences | (1,016) | (1,968) | (767) |
Property, plant and equipment at end of period | (377,896) | (372,242) | (362,006) |
Accumulated amortisation and impairment | Land and buildings | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | (11,765) | (10,571) | (10,217) |
Charge for the year | (1,204) | (1,153) | (1,148) |
Transfer to assets held for sale | 1 | 146 | (76) |
Disposal | 435 | 343 | 256 |
Disposal of Subsidiary | 1,056 | ||
Other | (99) | (133) | (616) |
Foreign exchange differences | (6) | (397) | 174 |
Property, plant and equipment at end of period | (12,638) | (11,765) | (10,571) |
Accumulated amortisation and impairment | Office equipment, vehicles and other | |||
Disclosure of detailed information about property, plant and equipment | |||
Property, plant and equipment at beginning of period | (38,096) | (36,264) | (40,037) |
Charge for the year | (7,548) | (5,696) | (5,064) |
Transfer to assets held for sale | 15 | (7) | (1) |
Disposal | 5,062 | 4,165 | 2,709 |
Disposal of Subsidiary | 236 | 5,540 | |
Other | (4) | (34) | 628 |
Foreign exchange differences | (112) | (496) | (39) |
Property, plant and equipment at end of period | ₽ (40,683) | ₽ (38,096) | ₽ (36,264) |
GOODWILL (Details)
GOODWILL (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | ₽ 38,041 | ₽ 38,675 |
Goodwill at end of period | 42,819 | 38,041 |
Telecom | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | 29,458 | 31,335 |
Goodwill at end of period | 34,048 | 29,458 |
Gross Book Value | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | 44,828 | 44,181 |
Acquisitions (Note 5) | 4,383 | 282 |
Impairment (Note 22) | (1,281) | |
Currency translation adjustment | 395 | 365 |
Goodwill at end of period | 49,606 | 44,828 |
Gross Book Value | Telecom | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | 30,924 | 32,801 |
Acquisitions (Note 5) | 4,337 | |
Reclassification (Note 6) | 253 | (1,877) |
Goodwill at end of period | 35,514 | 30,924 |
Accumulated Depreciation | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | (6,787) | (5,506) |
Goodwill at end of period | (6,787) | (6,787) |
Accumulated Depreciation | Telecom | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | (1,466) | (1,466) |
Goodwill at end of period | (1,466) | (1,466) |
Other | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | 8,583 | 7,340 |
Goodwill at end of period | 8,771 | 8,583 |
Other | Gross Book Value | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | 13,904 | 11,380 |
Acquisitions (Note 5) | 46 | 282 |
Reclassification (Note 6) | (253) | 1,877 |
Impairment (Note 22) | (1,281) | |
Currency translation adjustment | 395 | 365 |
Goodwill at end of period | 14,092 | 13,904 |
Other | Accumulated Depreciation | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | (5,321) | (4,040) |
Goodwill at end of period | (5,321) | (5,321) |
Armenia | Accumulated Depreciation | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | (3,516) | |
Goodwill at end of period | (3,516) | (3,516) |
Oblachnyi retail | Accumulated Depreciation | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | (524) | |
Goodwill at end of period | (524) | (524) |
Ticketland and Ponominalu | Accumulated Depreciation | ||
Change in the net carrying amount of goodwill | ||
Goodwill at beginning of period | (1,281) | |
Goodwill at end of period | ₽ (1,281) | ₽ (1,281) |
IMPAIRMENT REVIEW (Details)
IMPAIRMENT REVIEW (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
IMPAIRMENT REVIEW | ||||
Total impairment loss | ₽ 10 | ₽ (2,023) | ₽ 148 | |
Russia Convergent | ||||
IMPAIRMENT REVIEW | ||||
Capital expenditure as a percentage of revenue | 18.00% | 20.90% | ||
Terminal growth rate (as a percentage) | 1.00% | 1.00% | ||
Discount rate applied to cash flow projections (as a percentage) | 10.10% | 11.40% | ||
Armenia | ||||
IMPAIRMENT REVIEW | ||||
Capital expenditure as a percentage of revenue | 22.00% | 22.20% | ||
Terminal growth rate (as a percentage) | 0.00% | 0.00% | ||
Discount rate applied to cash flow projections (as a percentage) | 11.20% | 13.30% | ||
MGTS Commercial | ||||
IMPAIRMENT REVIEW | ||||
Capital expenditure as a percentage of revenue | 16.00% | |||
Terminal growth rate (as a percentage) | 1.00% | |||
Discount rate applied to cash flow projections (as a percentage) | 12.70% | |||
MTS Entertainment | ||||
IMPAIRMENT REVIEW | ||||
Capital expenditure as a percentage of revenue | 3.00% | 0.00% | ||
Discount rate applied to cash flow projections (as a percentage) | 13.10% | 13.60% | ||
MGTS Service | ||||
IMPAIRMENT REVIEW | ||||
Capital expenditure as a percentage of revenue | 16.00% | |||
Terminal growth rate (as a percentage) | 1.00% | |||
Discount rate applied to cash flow projections (as a percentage) | 9.90% | |||
MTS Turkmenistan | ||||
IMPAIRMENT REVIEW | ||||
Reversal of impairment loss recognised in profit or loss, property, plant and equipment | ₽ (66) | (114) | ||
Reversal of impairment loss recognised in profit or loss, other intangible assets | (34) | |||
Reversal of impairment loss recognised in profit or loss | (66) | (148) | ||
Turkmenistan | ||||
IMPAIRMENT REVIEW | ||||
Reversal of impairment loss recognised in profit or loss, property, plant and equipment | ₽ (10) | |||
Reversal of impairment loss recognised in profit or loss | ₽ (10) | ₽ (66) | ₽ (148) | |
Nvision Czech Republic | ||||
IMPAIRMENT REVIEW | ||||
Capital expenditure as a percentage of revenue | 1.00% | 1.20% | ||
Terminal growth rate (as a percentage) | 2.00% | 2.00% | ||
Discount rate applied to cash flow projections (as a percentage) | 6.00% | 6.10% | ||
Ticketland and Ponominalu | ||||
IMPAIRMENT REVIEW | ||||
Goodwill | ₽ 1,281 | ₽ 1,281 | ||
Total impairment loss | ₽ 1,281 | |||
Recoverable amount | ₽ 2,658 | |||
Cloud | ||||
IMPAIRMENT REVIEW | ||||
Capital expenditure as a percentage of revenue | 17.00% | 15.40% | ||
Terminal growth rate (as a percentage) | 1.00% | 1.00% | ||
Discount rate applied to cash flow projections (as a percentage) | 13.60% | 13.20% | ||
Kinopolis | ||||
IMPAIRMENT REVIEW | ||||
Investment property | ₽ 807 | |||
Total impairment loss | ₽ 807 | |||
Minimum | Russia Convergent | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 41.30% | 43.20% | ||
Minimum | Armenia | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 53.50% | 51.80% | ||
Minimum | MGTS Commercial | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 59.90% | |||
Minimum | MTS Entertainment | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 4.80% | 8.80% | ||
Minimum | MGTS Service | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 42.50% | |||
Minimum | Nvision Czech Republic | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 4.30% | 3.50% | ||
Minimum | Cloud | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 37.70% | 41.30% | ||
Maximum | Russia Convergent | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 46.90% | 44.30% | ||
Maximum | Armenia | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 60.30% | 54.00% | ||
Maximum | MGTS Commercial | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 63.00% | |||
Maximum | MTS Entertainment | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 12.00% | 32.00% | ||
Maximum | MGTS Service | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 51.80% | |||
Maximum | Nvision Czech Republic | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 5.00% | 5.20% | ||
Maximum | Cloud | ||||
IMPAIRMENT REVIEW | ||||
OIBDA margin (as a percentage) | 67.30% | 69.00% |
OTHER INTANGIBLE ASSETS (Detail
OTHER INTANGIBLE ASSETS (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | ₽ 90,103 | ||
Intangible assets other than goodwill at end of period | 100,132 | ₽ 90,103 | |
Gross Book Value | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | 203,228 | 192,700 | ₽ 223,463 |
Additions | 44,993 | 49,078 | 39,643 |
Arising on business combinations | 2,468 | 32 | |
Disposal of subsidiary | (311) | (37,573) | |
Reaclassification into assets for sale | (17) | (184) | |
Effect on assets impairment | 20 | (126) | (26) |
Disposal | (20,337) | (39,203) | (33,889) |
Other | (105) | (29) | 15 |
Foreign exchange differences | 1,372 | 1,303 | 1,035 |
Intangible assets other than goodwill at end of period | 231,622 | 203,228 | 192,700 |
Accumulated amortisation and impairment | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | (113,125) | (112,971) | (127,501) |
Disposal of subsidiary | 77 | 19,450 | |
Charge for the year | (37,486) | (37,546) | (35,582) |
Disposal | 20,083 | 38,440 | 33,275 |
Other | 220 | 42 | (2,582) |
Foreign exchange differences | (1,182) | (1,167) | (31) |
Intangible assets other than goodwill at end of period | (131,490) | (113,125) | (112,971) |
Licenses | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | 8,720 | ||
Intangible assets other than goodwill at end of period | ₽ 8,611 | 8,720 | |
Weighted-average period until next renewal of operating licenses | 2 years 6 months | ||
Licenses | Minimum | |||
Other intangible assets | |||
Useful life, years | 1 year | ||
Licenses | Maximum | |||
Other intangible assets | |||
Useful life, years | 20 years | ||
Licenses | Gross Book Value | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | ₽ 24,001 | 21,705 | 39,627 |
Additions | 1,350 | 1,466 | 1,106 |
Disposal of subsidiary | (19,149) | ||
Effect on assets impairment | (1) | ||
Disposal | (39) | (108) | (84) |
Other | 25 | 4 | |
Foreign exchange differences | 992 | 913 | 201 |
Intangible assets other than goodwill at end of period | 26,303 | 24,001 | 21,705 |
Licenses | Accumulated amortisation and impairment | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | (15,281) | (13,182) | (16,113) |
Disposal of subsidiary | 5,155 | ||
Charge for the year | (1,443) | (1,266) | (2,911) |
Disposal | 3 | 71 | 25 |
Other | (10) | (2) | |
Foreign exchange differences | (971) | (894) | 664 |
Intangible assets other than goodwill at end of period | (17,692) | (15,281) | (13,182) |
Right to use radio frequencies | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | 1,243 | ||
Intangible assets other than goodwill at end of period | ₽ 911 | 1,243 | |
Right to use radio frequencies | Minimum | |||
Other intangible assets | |||
Useful life, years | 1 year | ||
Right to use radio frequencies | Maximum | |||
Other intangible assets | |||
Useful life, years | 15 years | ||
Right to use radio frequencies | Gross Book Value | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | ₽ 5,579 | 5,689 | 6,648 |
Additions | (11) | (38) | |
Effect on assets impairment | 21 | 43 | (26) |
Disposal | (233) | (172) | (865) |
Other | 1 | 30 | (1) |
Foreign exchange differences | (29) | ||
Intangible assets other than goodwill at end of period | 5,368 | 5,579 | 5,689 |
Right to use radio frequencies | Accumulated amortisation and impairment | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | (4,336) | (4,098) | (4,586) |
Charge for the year | (349) | (367) | (372) |
Disposal | 228 | 160 | 831 |
Other | (31) | ||
Foreign exchange differences | 29 | ||
Intangible assets other than goodwill at end of period | (4,457) | (4,336) | (4,098) |
Billing and other software | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | 67,445 | ||
Intangible assets other than goodwill at end of period | ₽ 72,893 | 67,445 | |
Billing and other software | Minimum | |||
Other intangible assets | |||
Useful life, years | 1 year | ||
Billing and other software | Maximum | |||
Other intangible assets | |||
Useful life, years | 25 years | ||
Billing and other software | Gross Book Value | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | ₽ 146,851 | 139,968 | 138,564 |
Additions | 34,421 | 35,277 | 27,921 |
Arising on business combinations | 571 | 6 | |
Disposal of subsidiary | (311) | (15,770) | |
Reaclassification into assets for sale | (17) | (184) | |
Effect on assets impairment | (167) | ||
Disposal | (14,783) | (28,035) | (11,564) |
Other | (97) | (83) | 93 |
Foreign exchange differences | 381 | 386 | 718 |
Intangible assets other than goodwill at end of period | 167,327 | 146,851 | 139,968 |
Billing and other software | Accumulated amortisation and impairment | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | (79,406) | (82,096) | (80,785) |
Disposal of subsidiary | 77 | 12,657 | |
Charge for the year | (29,737) | (25,146) | (24,394) |
Disposal | 14,716 | 27,953 | 11,065 |
Other | 204 | 81 | (24) |
Foreign exchange differences | (211) | (275) | (615) |
Intangible assets other than goodwill at end of period | (94,434) | (79,406) | (82,096) |
Customer base | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | 2,450 | ||
Intangible assets other than goodwill at end of period | ₽ 2,965 | 2,450 | |
Customer base | Minimum | |||
Other intangible assets | |||
Useful life, years | 4 years | ||
Customer base | Maximum | |||
Other intangible assets | |||
Useful life, years | 31 years | ||
Customer base | Gross Book Value | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | ₽ 5,857 | 5,930 | 8,790 |
Arising on business combinations | 1,147 | (37) | |
Disposal | (680) | (73) | (2,823) |
Intangible assets other than goodwill at end of period | 6,324 | 5,857 | 5,930 |
Customer base | Accumulated amortisation and impairment | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | (3,407) | (3,048) | (5,258) |
Charge for the year | (631) | (431) | (603) |
Disposal | 679 | 72 | 2,813 |
Intangible assets other than goodwill at end of period | (3,359) | (3,407) | (3,048) |
Numbering capacity | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | 54 | ||
Intangible assets other than goodwill at end of period | ₽ 266 | 54 | |
Numbering capacity | Minimum | |||
Other intangible assets | |||
Useful life, years | 2 years | ||
Numbering capacity | Maximum | |||
Other intangible assets | |||
Useful life, years | 15 years | ||
Numbering capacity | Gross Book Value | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | ₽ 2,668 | 2,677 | 2,868 |
Additions | 75 | 15 | (2) |
Arising on business combinations | 174 | 2 | |
Disposal of subsidiary | (136) | ||
Disposal | (251) | (24) | (64) |
Foreign exchange differences | 9 | ||
Intangible assets other than goodwill at end of period | 2,666 | 2,668 | 2,677 |
Numbering capacity | Accumulated amortisation and impairment | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | (2,614) | (2,611) | (2,754) |
Disposal of subsidiary | 129 | ||
Charge for the year | (35) | (27) | (41) |
Disposal | 249 | 24 | 64 |
Foreign exchange differences | (9) | ||
Intangible assets other than goodwill at end of period | (2,400) | (2,614) | (2,611) |
Cost-to-obtain contracts | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | 7,667 | ||
Intangible assets other than goodwill at end of period | ₽ 7,897 | 7,667 | |
Cost-to-obtain contracts | Minimum | |||
Other intangible assets | |||
Useful life, years | 2 years | ||
Cost-to-obtain contracts | Maximum | |||
Other intangible assets | |||
Useful life, years | 5 years | ||
Cost-to-obtain contracts | Gross Book Value | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | ₽ 14,267 | 13,635 | 23,360 |
Additions | 3,653 | 10,390 | 10,290 |
Disposal of subsidiary | (1,826) | ||
Disposal | (3,287) | (9,758) | (18,281) |
Foreign exchange differences | 92 | ||
Intangible assets other than goodwill at end of period | 14,633 | 14,267 | 13,635 |
Cost-to-obtain contracts | Accumulated amortisation and impairment | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | (6,600) | (6,394) | (16,343) |
Disposal of subsidiary | 1,208 | ||
Charge for the year | (3,424) | (9,964) | (6,887) |
Disposal | 3,288 | 9,758 | 18,281 |
Other | (2,573) | ||
Foreign exchange differences | (80) | ||
Intangible assets other than goodwill at end of period | (6,736) | (6,600) | (6,394) |
Other intangible assets | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | 2,524 | ||
Intangible assets other than goodwill at end of period | ₽ 6,589 | 2,524 | |
Other intangible assets | Minimum | |||
Other intangible assets | |||
Useful life, years | 1 year | ||
Other intangible assets | Maximum | |||
Other intangible assets | |||
Useful life, years | 10 years | ||
Other intangible assets | Gross Book Value | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | ₽ 4,005 | 3,096 | 3,606 |
Additions | 5,494 | 1,941 | 366 |
Arising on business combinations | 576 | 61 | |
Disposal of subsidiary | (692) | ||
Effect on assets impairment | (2) | ||
Disposal | (1,064) | (1,033) | (208) |
Other | (9) | (1) | (81) |
Foreign exchange differences | (1) | 4 | 44 |
Intangible assets other than goodwill at end of period | 9,001 | 4,005 | 3,096 |
Other intangible assets | Accumulated amortisation and impairment | |||
Other intangible assets | |||
Intangible assets other than goodwill at beginning of period | (1,481) | (1,542) | (1,662) |
Disposal of subsidiary | 301 | ||
Charge for the year | (1,867) | (345) | (374) |
Disposal | 920 | 402 | 196 |
Other | 16 | 2 | 17 |
Foreign exchange differences | 2 | (20) | |
Intangible assets other than goodwill at end of period | ₽ (2,412) | ₽ (1,481) | ₽ (1,542) |
BORROWINGS (Details)
BORROWINGS (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
BORROWINGS | ||
Notes | ₽ 191,996 | ₽ 208,155 |
Bank and other loans | 270,143 | 221,113 |
Total borrowings | 462,139 | 429,268 |
Less: current portion | (111,839) | (34,125) |
Total borrowings, non-current | ₽ 350,300 | ₽ 395,143 |
BORROWINGS - Notes (Details)
BORROWINGS - Notes (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
BORROWINGS | ||
Total notes | ₽ 191,996 | ₽ 208,155 |
Less: current portion | (49,923) | (20,813) |
Total notes, non-current | ₽ 142,073 | 187,342 |
MTS International Notes due 2023 | ||
BORROWINGS | ||
Total notes | 33,091 | |
MTS International Notes due 2023 | USD | ||
BORROWINGS | ||
Interest rate | 5.00% | |
Total notes | ₽ 33,291 | |
MTS PJSC Notes due 2022 (7.70%) | ||
BORROWINGS | ||
Interest rate | 7.70% | |
Total notes | ₽ 14,991 | 14,980 |
MTS PJSC Notes due 2025 (8.00%) | ||
BORROWINGS | ||
Interest rate | 8.00% | |
Total notes | ₽ 14,990 | 14,987 |
MTS PJSC Notes due 2023 (6.85%) | ||
BORROWINGS | ||
Interest rate | 6.85% | |
Total notes | ₽ 14,982 | 14,971 |
MTS PJSC Notes due 2027 (6.60%) | ||
BORROWINGS | ||
Interest rate | 6.60% | |
Total notes | ₽ 6,983 | 6,980 |
MTS PJSC Notes due 2022 (9.00%) | ||
BORROWINGS | ||
Interest rate | 9.00% | |
Total notes | ₽ 10,000 | 9,998 |
MTS PJSC Notes due 2026 (7.90%) | ||
BORROWINGS | ||
Interest rate | 7.90% | |
Total notes | ₽ 9,999 | 9,998 |
MTS PJSC Notes due 2022 (5.50%) | ||
BORROWINGS | ||
Interest rate | 5.50% | |
Total notes | ₽ 9,995 | 9,984 |
MTS PJSC Notes due 2022 (6.45%) | ||
BORROWINGS | ||
Interest rate | 6.45% | |
Total notes | ₽ 9,994 | 9,988 |
MTS PJSC Notes due 2025 (7.25%) | ||
BORROWINGS | ||
Interest rate | 7.25% | |
Total notes | ₽ 9,993 | 9,990 |
MTS PJSC Notes due 2024 (8.70%) | ||
BORROWINGS | ||
Interest rate | 8.70% | |
Total notes | ₽ 9,991 | 9,986 |
MTS PJSC Notes due 2023 (6.50%) | ||
BORROWINGS | ||
Interest rate | 6.50% | |
Total notes | ₽ 9,923 | 9,860 |
MTS PJSC Notes due 2024 (8.60%) | ||
BORROWINGS | ||
Interest rate | 8.60% | |
Total notes | ₽ 7,491 | 7,488 |
MTS PJSC Notes due 2027 | ||
BORROWINGS | ||
Interest rate | 6.60% | |
Total notes | ₽ 14,975 | 14,971 |
MTS PJSC Notes due 2022 (8.40%) | ||
BORROWINGS | ||
Interest rate | 8.40% | |
Total notes | ₽ 4,997 | 4,994 |
MTS PJSC Notes due 2026 (6.60%) | ||
BORROWINGS | ||
Interest rate | 6.60% | |
Total notes | ₽ 4,992 | 4,990 |
MTS PJSC Notes due 2031 (7.50%) | ||
BORROWINGS | ||
Interest rate | 7.50% | |
Total notes | ₽ 78 | 891 |
MTS PJSC Notes due 2021 (8.85%) | ||
BORROWINGS | ||
Interest rate | 8.85% | |
Total notes | 9,999 | |
MTS PJSC Notes due 2024 (6.50%) | ||
BORROWINGS | ||
Interest rate | 6.50% | |
Total notes | ₽ 4,319 | |
MTS PJSC Notes due 2021 (7.10%) | ||
BORROWINGS | ||
Interest rate | 7.10% | |
Total notes | 9,997 | |
Other | ||
BORROWINGS | ||
Total notes | ₽ 12 | ₽ 12 |
BORROWINGS - Loans from banks a
BORROWINGS - Loans from banks and financial institutions (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
BORROWINGS | |||
Total bank and other loans | ₽ 270,143 | ₽ 221,113 | |
Less: current portion | (61,916) | (13,312) | |
Total bank and other loans, non-current | 208,227 | 207,801 | |
Sberbank | Russian Rubles | |||
BORROWINGS | |||
Total bank and other loans | ₽ 135,000 | 85,001 | |
Sberbank | Russian Rubles | Central Bank key rate | Minimum | |||
BORROWINGS | |||
Interest rate | 5.99% | ||
Sberbank | Russian Rubles | Central Bank key rate | Maximum | |||
BORROWINGS | |||
Basis spread on variable rate | 1.19% | ||
VTB | Russian Rubles | |||
BORROWINGS | |||
Total bank and other loans | ₽ 129,307 | ₽ 129,091 | |
VTB | Russian Rubles | Central Bank key rate | Minimum | |||
BORROWINGS | |||
Basis spread on variable rate | 0.50% | ||
VTB | Russian Rubles | Central Bank key rate | Maximum | |||
BORROWINGS | |||
Basis spread on variable rate | 1.25% | ||
Subsidized loans | |||
BORROWINGS | |||
Maximum Amount Borrowed | ₽ 1,702 | ||
Subsidized loans | Minimum | |||
BORROWINGS | |||
Interest rate | 1.00% | ||
Subsidized loans | Maximum | |||
BORROWINGS | |||
Interest rate | 5.00% | ||
Subsidized loans | Russian Rubles | |||
BORROWINGS | |||
Total bank and other loans | ₽ 1,769 | ₽ 1,845 | |
Subsidized loans | Russian Rubles | Central Bank key rate | Minimum | |||
BORROWINGS | |||
Interest rate | 0.10% | ||
Subsidized loans | Russian Rubles | Central Bank key rate | Maximum | |||
BORROWINGS | |||
Basis spread on variable rate | 2.42% | ||
Related party loans | Russian Rubles | |||
BORROWINGS | |||
Total bank and other loans | ₽ 1,968 | 1,803 | |
Related party loans | Russian Rubles | Central Bank key rate | |||
BORROWINGS | |||
Interest rate | 8.70% | ||
Other | Russian Rubles | |||
BORROWINGS | |||
Total bank and other loans | ₽ 2,099 | ₽ 3,373 |
BORROWINGS - Compliance with co
BORROWINGS - Compliance with covenants and credit facilities (Details) ₽ in Millions | 12 Months Ended |
Dec. 31, 2021RUB (₽) | |
Available credit facilities | |
Total available unused credit facilities | ₽ 207,323 |
Sberbank available till August 2025 | |
Available credit facilities | |
Total available unused credit facilities | 130,000 |
NDB Bank [Member] | |
Available credit facilities | |
Total available unused credit facilities | ₽ 22,288 |
NDB Bank [Member] | LIBOR | |
Available credit facilities | |
Basis spread on variable rate | 1.75% |
Sberbank available till August 2024 | |
Available credit facilities | |
Total available unused credit facilities | ₽ 20,000 |
Sberbank available till May 2024 | |
Available credit facilities | |
Total available unused credit facilities | 15,000 |
Rosselhozbank | |
Available credit facilities | |
Total available unused credit facilities | 7,000 |
VTB bank available till August 2028 | |
Available credit facilities | |
Total available unused credit facilities | 5,000 |
SPB Bank | |
Available credit facilities | |
Total available unused credit facilities | 3,000 |
VEB | |
Available credit facilities | |
Total available unused credit facilities | ₽ 970 |
VEB | CBR key rate | |
Available credit facilities | |
Interest rate | 0.10% |
Basis spread on variable rate | 2.47% |
ZTV | |
Available credit facilities | |
Total available unused credit facilities | ₽ 1,060 |
VEB bank available till November 2023 | |
Available credit facilities | |
Total available unused credit facilities | ₽ 2,490 |
VEB bank available till November 2023 | CBR key rate | |
Available credit facilities | |
Interest rate | 0.10% |
Basis spread on variable rate | 2.42% |
Cisco | |
Available credit facilities | |
Total available unused credit facilities | ₽ 515 |
Citibank | MosPrime | |
Available credit facilities | |
Basis spread on variable rate | 1.50% |
Number of days for repayment of credit facility | 182 days |
MTS International Notes due 2023 | |
Compliance with covenants | |
Notes redemption price (as a percentage of principal) | 101.00% |
BORROWINGS - Maturities of prin
BORROWINGS - Maturities of principal on notes and bank loans (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Scheduled Debt Principal Repayments | ||
Total borrowings | ₽ 462,139 | ₽ 429,268 |
Notes [Member] | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 225,381 | |
Less: unamortized debt issuance costs | (184) | |
Less: interest | (33,201) | |
Total borrowings | 191,996 | |
Bank loans and other debt | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 323,705 | |
Less: interest | (52,628) | |
Add: debt modification | (693) | |
Less: subsidized interest rate effect | (241) | |
Total borrowings | 270,143 | |
2022 | Notes [Member] | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 62,772 | |
2022 | Bank loans and other debt | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 83,862 | |
2023 | Notes [Member] | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 66,809 | |
2023 | Bank loans and other debt | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 58,523 | |
2024 | Notes [Member] | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 27,346 | |
2024 | Bank loans and other debt | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 72,799 | |
2025 | Notes [Member] | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 28,529 | |
2025 | Bank loans and other debt | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 93,385 | |
2026 | Notes [Member] | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 17,448 | |
2026 | Bank loans and other debt | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | 15,136 | |
Thereafter | Notes [Member] | ||
Scheduled Debt Principal Repayments | ||
Contractual undiscounted cash flows | ₽ 22,477 |
RIGHT-OF-USE ASSETS AND LEASE_3
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Sites for placement of network equipment and base stations inside the buildings | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |
Amortized term of right-of-use assets | 10 years |
Sites for placement of network equipment and base stations on land | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |
Amortized term of right-of-use assets | 20 years |
Minimum | Administrative offices, warehouses, parking garages | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |
Amortized term of right-of-use assets | 3 years |
Minimum | Vehicles | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |
Amortized term of right-of-use assets | 4 years |
Maximum | Retail stores | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |
Amortized term of right-of-use assets | 8 years |
Maximum | Vehicles | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |
Amortized term of right-of-use assets | 5 years |
RIGHT-OF-USE ASSETS AND LEASE_4
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS - Net book value of rights-of-use assets (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets | |||
Right-of-use assets | ₽ 132,343 | ₽ 130,503 | |
Depreciation, right-of-use assets | 19,879 | 18,849 | ₽ 19,965 |
Additions to right-of-use assets | 17,510 | 13,102 | 20,436 |
Interest expense accrued on lease liabilities | 11,820 | 12,277 | 13,416 |
Discontinued operations | |||
Disclosure of quantitative information about right-of-use assets | |||
Depreciation, right-of-use assets | 0 | 3 | 1,644 |
Interest expense accrued on lease liabilities | 0 | 1 | 1,246 |
Sites for placement of network and base station equipment | |||
Disclosure of quantitative information about right-of-use assets | |||
Right-of-use assets | 91,566 | 93,948 | |
Depreciation, right-of-use assets | 11,448 | 6,903 | 6,900 |
Land and buildings | |||
Disclosure of quantitative information about right-of-use assets | |||
Right-of-use assets | 40,572 | 36,468 | |
Depreciation, right-of-use assets | 8,328 | 11,903 | 11,968 |
Vehicles and other | |||
Disclosure of quantitative information about right-of-use assets | |||
Right-of-use assets | 205 | 87 | |
Depreciation, right-of-use assets | ₽ 103 | ₽ 43 | 404 |
Exclusive rights for trademarks | |||
Disclosure of quantitative information about right-of-use assets | |||
Depreciation, right-of-use assets | ₽ 693 |
RIGHT-OF-USE ASSETS AND LEASE_5
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS - Short term leases and variable lease payments (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |||
Variable lease payments | ₽ 10,623 | ₽ 9,542 | ₽ 8,522 |
Short-term leases | 310 | 195 | 203 |
Total | ₽ 10,933 | ₽ 9,737 | ₽ 8,725 |
RIGHT-OF-USE ASSETS AND LEASE_6
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS - Future minimum lease payments under capital leases (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |||
Total minimum lease payments | ₽ 222,754 | ₽ 219,351 | |
Less amount representing interest | (68,245) | (68,537) | |
Total present value of net minimum lease payments | 154,509 | 150,814 | |
Less current portion of lease obligations | (18,709) | (16,177) | |
Non-current portion of lease obligations | 135,800 | 134,637 | |
Cash outflow for leases | 38,996 | 36,963 | ₽ 38,545 |
Cash outflows for leases included in interest paid | 11,548 | 12,173 | ₽ 14,666 |
Gain on termination of lease agreements | 464 | ||
Gain on termination of rent holidays | 286 | ||
2022 | |||
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |||
Total minimum lease payments | 29,758 | 27,094 | |
Total present value of net minimum lease payments | 18,709 | 16,177 | |
2023-2027 | |||
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |||
Total minimum lease payments | 101,965 | 98,737 | |
Total present value of net minimum lease payments | 70,818 | 66,784 | |
Thereafter | |||
RIGHT-OF-USE ASSETS AND LEASE OBLIGATIONS | |||
Total minimum lease payments | 91,031 | 93,520 | |
Total present value of net minimum lease payments | ₽ 64,982 | ₽ 67,853 |
RECONCILIATION OF LIABILITIES_3
RECONCILIATION OF LIABILITIES ARISING FROM FINANCIAL ACTIVITIES (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of liabilities arising from financial activities | ||
Liabilities arising from financial activities - beginning of year | ₽ 576,662 | ₽ 522,757 |
Financing cash flows | (71,214) | (27,360) |
Operating cash flows | (11,548) | (12,622) |
Acquisitions/Disposals | 1,881 | (119) |
Foreign exchange movement | 107 | 5,497 |
Other comprehensive income | 62 | 150 |
Change in fair value | (62) | (53) |
Other changes | 55,571 | 36,400 |
Change in retained earnings | 61,967 | 52,012 |
Liabilities arising from financial activities - end of year | 613,426 | 576,662 |
Notes [Member] | ||
Reconciliation of liabilities arising from financial activities | ||
Liabilities arising from financial activities - beginning of year | 208,155 | 183,935 |
Financing cash flows | (16,504) | 18,590 |
Foreign exchange movement | 187 | 7,674 |
Other changes | 158 | (2,044) |
Liabilities arising from financial activities - end of year | 191,996 | 208,155 |
Bank and other loans | ||
Reconciliation of liabilities arising from financial activities | ||
Liabilities arising from financial activities - beginning of year | 221,113 | 159,384 |
Financing cash flows | 48,718 | 60,055 |
Acquisitions/Disposals | 1,735 | 26 |
Other comprehensive income | (10) | |
Other changes | (1,413) | 1,648 |
Liabilities arising from financial activities - end of year | 270,143 | 221,113 |
Lease obligation | ||
Reconciliation of liabilities arising from financial activities | ||
Liabilities arising from financial activities - beginning of year | 150,814 | 155,308 |
Financing cash flows | (16,516) | (15,054) |
Operating cash flows | (11,548) | (12,173) |
Acquisitions/Disposals | 146 | (145) |
Foreign exchange movement | 45 | 1,405 |
Other comprehensive income | 72 | 150 |
Other changes | 31,496 | 21,323 |
Liabilities arising from financial activities - end of year | 154,509 | 150,814 |
Payables related to repurchase of common stock | ||
Reconciliation of liabilities arising from financial activities | ||
Financing cash flows | (21,483) | (16,028) |
Other changes | 21,483 | 16,028 |
Dividends payable | ||
Reconciliation of liabilities arising from financial activities | ||
Liabilities arising from financial activities - beginning of year | 109 | 23,080 |
Financing cash flows | (61,955) | (74,923) |
Other changes | (53) | (60) |
Change in retained earnings | 61,967 | 52,012 |
Liabilities arising from financial activities - end of year | 68 | 109 |
Payables related to transactions under common control | ||
Reconciliation of liabilities arising from financial activities | ||
Liabilities arising from financial activities - beginning of year | 22 | |
Financing cash flows | (3,474) | |
Other changes | 3,474 | (22) |
Liability under put option agreement | ||
Reconciliation of liabilities arising from financial activities | ||
Liabilities arising from financial activities - beginning of year | 62 | 73 |
Change in fair value | (62) | (53) |
Other changes | 42 | |
Liabilities arising from financial activities - end of year | 62 | |
Derivative Instruments | ||
Reconciliation of liabilities arising from financial activities | ||
Liabilities arising from financial activities - beginning of year | (3,591) | 955 |
Operating cash flows | (449) | |
Foreign exchange movement | (125) | (3,582) |
Other changes | 426 | (515) |
Liabilities arising from financial activities - end of year | ₽ (3,290) | ₽ (3,591) |
PROVISIONS (Details)
PROVISIONS (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in provisions | |||
Provision beginning of the period | ₽ (18,588) | ₽ (16,287) | ₽ (74,302) |
Arising during the year | (22,125) | (19,755) | (19,855) |
Utilised | 15,186 | 16,709 | 72,227 |
Discount rate adjustment and imputed interest (change in estimates) | (141) | (70) | 30 |
Unused amounts reversed | 1,292 | 510 | 712 |
Arising due to acquisitions of subsidiaries | (369) | (9) | |
Disposal of a subsidiary | 369 | 1,608 | |
Other | (22) | (64) | 3,302 |
Provision end of the period | (24,767) | (18,588) | (16,287) |
Current portion | (17,479) | (13,460) | (11,526) |
Non-current portion | (7,288) | (5,128) | (4,761) |
Tax provisions other than for income tax | |||
Changes in provisions | |||
Provision beginning of the period | (621) | (563) | (252) |
Arising during the year | (74) | (211) | (410) |
Utilised | 161 | 29 | 19 |
Discount rate adjustment and imputed interest (change in estimates) | 1 | ||
Unused amounts reversed | 488 | 8 | 34 |
Arising due to acquisitions of subsidiaries | (207) | ||
Disposal of a subsidiary | 115 | 50 | |
Other | (1) | (4) | |
Provision end of the period | (254) | (621) | (563) |
Current portion | (254) | (621) | (563) |
Provision for decommissioning and restoration | |||
Changes in provisions | |||
Provision beginning of the period | (5,273) | (4,788) | (3,109) |
Arising during the year | (2,329) | (914) | (2,341) |
Utilised | 31 | 54 | 19 |
Discount rate adjustment and imputed interest (change in estimates) | (145) | (138) | 42 |
Unused amounts reversed | 226 | 513 | |
Disposal of a subsidiary | 760 | ||
Other | (159) | ||
Provision end of the period | (7,490) | (5,273) | (4,788) |
Current portion | (284) | (229) | (126) |
Non-current portion | (7,206) | (5,044) | (4,662) |
Employee bonuses and other rewards | |||
Changes in provisions | |||
Provision beginning of the period | (8,199) | (10,043) | (10,378) |
Arising during the year | (17,860) | (14,770) | (16,896) |
Utilised | 13,258 | 16,489 | 16,055 |
Discount rate adjustment and imputed interest (change in estimates) | 4 | 67 | (12) |
Unused amounts reversed | 580 | (125) | 523 |
Arising due to acquisitions of subsidiaries | (159) | (9) | |
Disposal of a subsidiary | 245 | 672 | |
Other | (18) | (62) | 2 |
Provision end of the period | (12,394) | (8,199) | (10,043) |
Current portion | (12,312) | (8,115) | (9,944) |
Non-current portion | (82) | (84) | (99) |
SEC Provision | |||
Changes in provisions | |||
Provision beginning of the period | (59,050) | ||
Utilised | 55,607 | ||
Other | 3,443 | ||
Letigations and Other provisions (Note 34) | |||
Changes in provisions | |||
Provision beginning of the period | (4,495) | (893) | (1,513) |
Arising during the year | (1,862) | (3,860) | (208) |
Utilised | 1,736 | 137 | 527 |
Unused amounts reversed | (2) | 114 | 155 |
Arising due to acquisitions of subsidiaries | (3) | ||
Disposal of a subsidiary | 9 | 126 | |
Other | (3) | (2) | 20 |
Provision end of the period | (4,629) | (4,495) | (893) |
Current portion | ₽ (4,629) | ₽ (4,495) | ₽ (893) |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments | ||
Total financial assets | ₽ 362,144 | ₽ 315,765 |
Less current portion | (224,862) | (227,338) |
Total financial assets, non-current | 137,282 | 88,427 |
Total financial liabilities | 914,584 | 808,045 |
Less current portion | (413,990) | (276,368) |
Total financial liabilities, non-current | 500,594 | 531,677 |
Financial liabilities at amortised cost | ||
Financial instruments | ||
Total financial liabilities | 838,016 | 747,759 |
Fair value through profit or loss | ||
Financial instruments | ||
Total financial liabilities | 383 | 1,123 |
Trade and other payables | ||
Financial instruments | ||
Total financial liabilities | 72,078 | 56,017 |
Accounts payable, related parties | ||
Financial instruments | ||
Total financial liabilities | 4,107 | 3,146 |
Bank and other loans | Financial liabilities at amortised cost | ||
Financial instruments | ||
Total financial liabilities | 270,143 | 221,113 |
Lease obligations | Financial liabilities at amortised cost | ||
Financial instruments | ||
Total financial liabilities | 154,509 | 150,814 |
Notes | Financial liabilities at amortised cost | ||
Financial instruments | ||
Total financial liabilities | 191,996 | 208,155 |
Bank deposits and liabilities | Financial liabilities at amortised cost | ||
Financial instruments | ||
Total financial liabilities | 221,368 | 167,677 |
Other financial liabilities at fair value: | ||
Financial instruments | ||
Total financial liabilities | 838,399 | 748,882 |
Contingent consideration and other liabilities | Fair value through profit or loss | ||
Financial instruments | ||
Total financial liabilities | 383 | 1,068 |
Options | Fair value through profit or loss | ||
Financial instruments | ||
Total financial liabilities | 55 | |
At FVTPL | ||
Financial instruments | ||
Total financial assets | 55,158 | 50,767 |
At amortized cost | ||
Financial instruments | ||
Total financial assets | 219,314 | 130,373 |
Trade and other receivables | ||
Financial instruments | ||
Total financial assets | 39,795 | 35,031 |
Accounts receivable, related parties | ||
Financial instruments | ||
Total financial assets | 7,287 | 14,189 |
Cash and Cash equivalents | ||
Financial instruments | ||
Total financial assets | 40,590 | 85,405 |
Other financial assets | ||
Financial instruments | ||
Total financial assets | 274,472 | 181,140 |
Securities held by MTS Bank and Sistema Capital | At FVTPL | ||
Financial instruments | ||
Total financial assets | 25,687 | 21,824 |
Mutual funds | At FVTPL | ||
Financial instruments | ||
Total financial assets | 10,719 | 10,699 |
Assets in Sistema-Capital trust management | At FVTPL | ||
Financial instruments | ||
Total financial assets | 10,374 | 10,313 |
Contingent consideration | At FVTPL | ||
Financial instruments | ||
Total financial assets | 1,867 | 2,631 |
Investments in equity | At FVTPL | ||
Financial instruments | ||
Total financial assets | 1,228 | |
Embedded derivatives in a lease agreement | At FVTPL | ||
Financial instruments | ||
Total financial assets | 434 | 562 |
Assets under option agreements | At FVTPL | ||
Financial instruments | ||
Total financial assets | 112 | 228 |
Currency forwards, swaps and options not designated as hedges | At FVTPL | ||
Financial instruments | ||
Total financial assets | 110 | 2 |
Cross-currency swaps not designated as hedges | At FVTPL | ||
Financial instruments | ||
Total financial assets | 4,627 | 4,508 |
Deposits and loans issued | At amortized cost | ||
Financial instruments | ||
Total financial assets | 208,018 | 118,594 |
Notes | At amortized cost | ||
Financial instruments | ||
Total financial assets | 9,158 | 9,583 |
Other | At amortized cost | ||
Financial instruments | ||
Total financial assets | ₽ 2,138 | ₽ 2,196 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value of financial instruments (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair value measurements | |||
Net realized gains of Level 3 assets | ₽ 1,843 | ₽ 807 | ₽ 200 |
Level 1 | Securities held by MTS Bank and Sistema Capital | |||
Fair value measurements | |||
Assets | 25,687 | 21,824 | |
Level 2 | Derivative financial instruments | |||
Fair value measurements | |||
Assets | 4,736 | 4,510 | |
Level 2 | Cross-currency swaps not designated as hedges | |||
Fair value measurements | |||
Assets | 4,627 | 4,508 | |
Level 2 | Currency forwards, swaps and options | |||
Fair value measurements | |||
Assets | 110 | 2 | |
Level 2 | Mutual funds | |||
Fair value measurements | |||
Assets | 10,719 | 10,699 | |
Level 2 | Assets in Sistema-Capital trust management | |||
Fair value measurements | |||
Assets | 10,374 | 10,313 | |
Level 2 | Embedded derivatives in a lease agreement | |||
Fair value measurements | |||
Assets | 434 | 562 | |
Level 3 | |||
Fair value measurements | |||
Net realized gains of Level 3 assets | 2,263 | 846 | 2,013 |
Net realized losses of Level 3 liabilities | (420) | (39) | ₽ (1,813) |
Net unrealized gains of Level 3 assets | 385 | ||
Net unrealized gains/(losses) of Level 3 liabilities | 391 | ||
Net unrealized gains/(losses) of Level 3 assets and liabilities | 776 | ||
Level 3 | Contingent consideration | |||
Fair value measurements | |||
Liabilities | (188) | (944) | |
Level 3 | Options | |||
Fair value measurements | |||
Liabilities | (55) | ||
Level 3 | Investments In Equity [Member] | |||
Fair value measurements | |||
Assets | 1,228 | ||
Level 3 | Contingent consideration | |||
Fair value measurements | |||
Assets | 1,867 | 2,631 | |
Level 3 | Assets under option agreements | |||
Fair value measurements | |||
Assets | ₽ 112 | ₽ 228 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial instruments at amortised cost (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair value measurements of assets | |||
Carrying value | ₽ (914,584) | ₽ (808,045) | |
Transfer of assets at fair value from level 1 to level 2 | 0 | 0 | ₽ 0 |
Transfer of assets at fair value from level 2 to level 1 | 0 | 0 | 0 |
Assets transfers into Level 3 fair value measurements | 0 | 0 | 0 |
Assets transfers out of Level 3 fair value measurements | 0 | 0 | 0 |
Transfer of liabilities at fair value from level 1 to level 2 | 0 | 0 | 0 |
Transfer of liabilities at fair value from level 2 to level 1 | 0 | 0 | 0 |
Liabilities transfers into Level 3 fair value measurements | 0 | 0 | 0 |
Liabilities transfers out of Level 3 fair value measurements | 0 | 0 | 0 |
Transfers in and out of categories of financial instruments | 0 | 0 | |
Swaps | At FVTPL | |||
Fair value measurements of assets | |||
Financial assets, at fair value | 678 | ||
Swaps | At fair value through other comprehensive income | |||
Fair value measurements of assets | |||
Financial assets, at fair value | ₽ (678) | ||
Fair value | |||
Fair value measurements of assets | |||
Fair value | (458,320) | (438,323) | |
Gross Book Value | |||
Fair value measurements of assets | |||
Carrying value | (462,139) | (429,267) | |
Level 1 | Fair value | Notes [Member] | |||
Fair value measurements of assets | |||
Fair value | (173,903) | (200,198) | |
Level 1 | Gross Book Value | Notes [Member] | |||
Fair value measurements of assets | |||
Carrying value | (174,984) | (191,142) | |
Level 3 | Fair value | Unquoted Notes | |||
Fair value measurements of assets | |||
Fair value | (17,012) | (17,012) | |
Level 3 | Fair value | Bank and other loans | |||
Fair value measurements of assets | |||
Fair value | (267,405) | (221,113) | |
Level 3 | Gross Book Value | Unquoted Notes | |||
Fair value measurements of assets | |||
Carrying value | (17,012) | (17,012) | |
Level 3 | Gross Book Value | Bank and other loans | |||
Fair value measurements of assets | |||
Carrying value | ₽ (270,143) | ₽ (221,113) |
FINANCIAL RISK MANAGEMENT - Int
FINANCIAL RISK MANAGEMENT - Interest rate risks (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
FINANCIAL RISK MANAGEMENT | ||
MTS Bank's capital adequacy ratio as per CBR requirements on own capital | 8.00% | |
MTS Bank's capital adequacy ratio as per CBR requirements on base capital | 4.50% | |
MTS Bank's capital adequacy ratio as per CBR requirements on main capital | 6.00% | |
Capital adequacy ratio of MTS bank as per the CBR requirements for own capital | 12.54% | 13.70% |
Capital adequacy ratio of MTS bank as per the requirements of CBR for base capital | 9.65% | 9.89% |
Capital adequacy ratio of MTS bank as per the CBR requirements for main capital | 10.83% | 7.78% |
Interest rate swaps derivative instruments | ||
FINANCIAL RISK MANAGEMENT | ||
Notional amount | ₽ 22,288 | ₽ 22,163 |
Interest rate swaps derivative instruments | Fixed interest rate risk | ||
FINANCIAL RISK MANAGEMENT | ||
Percentage of the Group's hedged bank loans covered by swap agreements | 8.30% | 7.40% |
FINANCIAL RISK MANAGEMENT - Sen
FINANCIAL RISK MANAGEMENT - Sensitivity analysis (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase in short term interest rate | |||
FINANCIAL RISK MANAGEMENT | |||
Reasonably possible increase in short term interest rates | 1.00% | 1.00% | 1.00% |
Increases of interest expense due to increase in risk | ₽ 1,523 | ₽ 1,166 | ₽ 271 |
Decrease in short term interest rate | |||
FINANCIAL RISK MANAGEMENT | |||
Reasonably possible decrease in short term interest rates | 1.00% | 1.00% | 1.00% |
Decreases of finance cost due to decrease in risk | ₽ 1,523 | ₽ 1,166 | ₽ 271 |
FINANCIAL RISK MANAGEMENT - For
FINANCIAL RISK MANAGEMENT - Foreign currency risks (Details) - Foreign currency - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cross currency swap agreements | |||
FINANCIAL RISK MANAGEMENT | |||
Percentage of USD- and Euro- denominated Notes and bank loans outstanding hedged for exposure to currency rate risk | 66.80% | 66.70% | |
Notionals related to interest rate derivative instruments | ₽ 22,288 | ₽ 22,163 | |
Forward contracts | |||
FINANCIAL RISK MANAGEMENT | |||
Notionals related to interest rate derivative instruments | 9,993 | 7,911 | |
Gain (loss) recognized in consolidated statement of profit and loss | ₽ 83 | ₽ 1,136 | ₽ 701 |
FINANCIAL RISK MANAGEMENT - F_2
FINANCIAL RISK MANAGEMENT - Foreign currency risks and liquidity risk (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liquidity risk | |||
Amount by which current liabilities exceed current assets | ₽ 210,120 | ||
Availability of committed credit facilities | ₽ 207,323 | ||
Minimum | |||
Liquidity risk | |||
Maturity of long term debt | 1 year | ||
Maximum | |||
Liquidity risk | |||
Maturity of long term debt | 5 years | ||
Foreign currency | USD | |||
Foreign currency risk exposure and sensitivity analysis | |||
Increase in the currency exchange rate | 15.00% | 10.00% | 5.00% |
Decrease in the currency exchange rate | (15.00%) | (10.00%) | (5.00%) |
Effect on profit before tax | ₽ (856) | ₽ 786 | ₽ 2,516 |
Effect on profit before tax | ₽ 856 | ₽ (1,291) | ₽ (2,516) |
Foreign currency | Euro | |||
Foreign currency risk exposure and sensitivity analysis | |||
Increase in the currency exchange rate | 15.00% | 10.00% | 1.00% |
Decrease in the currency exchange rate | (15.00%) | (10.00%) | (1.00%) |
Effect on profit before tax | ₽ (1,012) | ₽ (682) | ₽ 120 |
Effect on profit before tax | ₽ 1,012 | ₽ 682 | ₽ (120) |
FINANCIAL RISK MANAGEMENT - Cre
FINANCIAL RISK MANAGEMENT - Credit risk and impairment credit losses on financial assets (Details) - Credit risk - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Credit risk exposure | ||
Number of days for significant increase in credit risk | 30 days | |
Deposits and loans issued | ||
Credit risk exposure | ||
Exposure to credit risk | ₽ 208,018 | ₽ 118,594 |
Cash and Cash equivalents | ||
Credit risk exposure | ||
Exposure to credit risk | 40,590 | 85,405 |
Trade and other receivables | ||
Credit risk exposure | ||
Exposure to credit risk | 39,795 | 35,031 |
Securities held by MTS Bank | ||
Credit risk exposure | ||
Exposure to credit risk | 24,737 | 21,824 |
Mutual funds | ||
Credit risk exposure | ||
Exposure to credit risk | 10,719 | 10,699 |
Assets in Sistema-Capital trust management | ||
Credit risk exposure | ||
Exposure to credit risk | 10,374 | 10,313 |
Notes | ||
Credit risk exposure | ||
Exposure to credit risk | 9,158 | 9,583 |
Derivative financial instruments | ||
Credit risk exposure | ||
Exposure to credit risk | 5,171 | 5,072 |
Contingent consideration | ||
Credit risk exposure | ||
Exposure to credit risk | 1,867 | 2,631 |
Investments in equity | ||
Credit risk exposure | ||
Exposure to credit risk | 1,228 | 400 |
Assets under option agreements | ||
Credit risk exposure | ||
Exposure to credit risk | 112 | 228 |
Other | ||
Credit risk exposure | ||
Exposure to credit risk | ₽ 3,088 | ₽ 1,796 |
BANK FINANCIAL ASSETS AND LIA_3
BANK FINANCIAL ASSETS AND LIABILITIES - Bank deposits and loans to customers (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | ₽ 205,936 | ₽ 116,668 |
Less: current portion | (87,594) | (52,676) |
Bank deposits and loans to customers, non-current | 118,342 | 63,992 |
Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 227,080 | 133,114 |
Allowance for ECL | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | (21,144) | (16,446) |
Corporate borrowers | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 28,409 | 26,602 |
Medium-sized enterprises and small businesses | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 1,706 | 1,736 |
Loans to legal entities | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 30,115 | 28,338 |
Mortgage loans | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 16,553 | 14,384 |
Consumer loans | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 139,766 | 65,142 |
Credit cards | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 36,933 | 21,874 |
Other | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 200 | 426 |
Loans to individuals | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 193,452 | 101,826 |
Time deposits with banks | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 1,781 | 1,770 |
Obligatory reserves with the Central Bank of Russia | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 1,733 | 1,180 |
Due from banks | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | 3,514 | 2,950 |
Loans to customers | Gross Book Value | ||
Bank deposits and loans to customers | ||
Total bank deposits and loans to customers, net | ₽ 223,566 | ₽ 130,164 |
BANK FINANCIAL ASSETS AND LIA_4
BANK FINANCIAL ASSETS AND LIABILITIES - Carrying value of loans to customers aggregated by types of collateral (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
BANK FINANCIAL ASSETS AND LIABILITIES | |||
Allowance for ECL | ₽ (3,536) | ₽ (4,623) | |
Bank deposits and loans | |||
BANK FINANCIAL ASSETS AND LIABILITIES | |||
Allowance for ECL | (21,144) | (16,446) | ₽ (10,031) |
Loans to customers | |||
BANK FINANCIAL ASSETS AND LIABILITIES | |||
Loans to customers | 202,453 | 113,728 | |
Allowance for ECL | (21,114) | (16,436) | ₽ (10,024) |
Loans to customers | Allowance for ECL | |||
BANK FINANCIAL ASSETS AND LIABILITIES | |||
Allowance for ECL | (21,114) | (16,436) | |
Guaranties | Loans to customers | Gross Book Value | |||
BANK FINANCIAL ASSETS AND LIABILITIES | |||
Loans to customers | 22,380 | 17,200 | |
Pledge of real estate | Loans to customers | Gross Book Value | |||
BANK FINANCIAL ASSETS AND LIABILITIES | |||
Loans to customers | 19,115 | 18,733 | |
Securities | Loans to customers | Gross Book Value | |||
BANK FINANCIAL ASSETS AND LIABILITIES | |||
Loans to customers | 284 | 370 | |
Pledge of equipment | Loans to customers | Gross Book Value | |||
BANK FINANCIAL ASSETS AND LIABILITIES | |||
Loans to customers | 1 | 100 | |
Rights of claim, pledge of inventories or own promissory notes and by other collateral | Loans to customers | Gross Book Value | |||
BANK FINANCIAL ASSETS AND LIABILITIES | |||
Loans to customers | 156 | ||
Unsecured loans | Loans to customers | Gross Book Value | |||
BANK FINANCIAL ASSETS AND LIABILITIES | |||
Loans to customers | ₽ 181,787 | ₽ 93,605 |
BANK FINANCIAL ASSETS AND LIA_5
BANK FINANCIAL ASSETS AND LIABILITIES - Movements in the allowance for impairment losses attributable to bank deposits and loans (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movements in the allowance for impairment losses attributable to bank deposits and loans to customers | ||
Beginning balance | ₽ 4,623 | |
Ending Balance | 3,536 | ₽ 4,623 |
Bank deposits and loans | ||
Movements in the allowance for impairment losses attributable to bank deposits and loans to customers | ||
Beginning balance | 16,446 | 10,031 |
Provision charge | 11,066 | 8,274 |
Recovery of previously written-off assets | 1,557 | 565 |
Bad debt written-off | (3,361) | (2,145) |
Sale of loans | (4,324) | (279) |
Other movements | (240) | |
Ending Balance | 21,144 | 16,446 |
Loans to customers | ||
Movements in the allowance for impairment losses attributable to bank deposits and loans to customers | ||
Beginning balance | 16,436 | 10,024 |
Provision charge | 11,046 | 8,271 |
Recovery of previously written-off assets | 1,557 | 565 |
Bad debt written-off | (3,361) | (2,145) |
Sale of loans | (4,324) | (279) |
Other movements | (240) | |
Ending Balance | 21,114 | 16,436 |
Due from banks | ||
Movements in the allowance for impairment losses attributable to bank deposits and loans to customers | ||
Beginning balance | 10 | 7 |
Provision charge | 20 | |
Provision release | 3 | |
Ending Balance | ₽ 30 | ₽ 10 |
BANK FINANCIAL ASSETS AND LIA_6
BANK FINANCIAL ASSETS AND LIABILITIES - Movements in provision for impairment losses on loans (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | ||
Beginning balance | ₽ 4,623 | |
Ending Balance | 3,536 | ₽ 4,623 |
Accumulated Depreciation | Loans to legal entities | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | ||
Beginning balance | 3,744 | 3,957 |
New financial assets originated or purchased | 317 | 418 |
Change due to change of credit risk | (1,579) | (21) |
Sale of loans | (279) | |
Write-offs | (79) | (515) |
Recovery of previously written-off assets | 975 | 184 |
Other movements | (240) | |
Ending Balance | 3,138 | 3,744 |
Accumulated Depreciation | Loans to individuals | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | ||
Beginning balance | 12,692 | 6,067 |
New financial assets originated or purchased | 3,821 | 1,226 |
Change due to change of credit risk | 8,487 | 6,648 |
Sale of loans | (4,324) | |
Write-offs | (3,282) | (1,631) |
Recovery of previously written-off assets | 582 | 382 |
Ending Balance | 17,976 | 12,692 |
Stage 1 | Accumulated Depreciation | Loans to legal entities | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | ||
Beginning balance | 899 | 681 |
- Transfer to stage 1 | 119 | 1 |
- Transfer to stage 2 | (46) | (66) |
- Transfer to stage 3 | (105) | (30) |
New financial assets originated or purchased | 317 | 418 |
Change due to change of credit risk | (126) | (105) |
Other movements | (240) | |
Ending Balance | 818 | 899 |
Stage 1 | Accumulated Depreciation | Loans to individuals | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | ||
Beginning balance | 3,099 | 1,808 |
- Transfer to stage 1 | 1,809 | 1,396 |
- Transfer to stage 2 | (939) | (415) |
- Transfer to stage 3 | (278) | (2) |
New financial assets originated or purchased | 3,821 | 1,226 |
Change due to change of credit risk | (1,419) | (914) |
Ending Balance | 6,093 | 3,099 |
Stage 2 | Accumulated Depreciation | Loans to legal entities | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | ||
Beginning balance | 141 | 77 |
- Transfer to stage 1 | (119) | (1) |
- Transfer to stage 2 | 49 | 66 |
- Transfer to stage 3 | (26) | (47) |
Change due to change of credit risk | (20) | 46 |
Ending Balance | 25 | 141 |
Stage 2 | Accumulated Depreciation | Loans to individuals | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | ||
Beginning balance | 1,446 | 923 |
- Transfer to stage 1 | (1,633) | (1,172) |
- Transfer to stage 2 | 1,220 | 594 |
- Transfer to stage 3 | (4,691) | (3,848) |
Change due to change of credit risk | 7,019 | 4,949 |
Ending Balance | 3,361 | 1,446 |
Stage 3 | Accumulated Depreciation | Loans to legal entities | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | ||
Beginning balance | 2,704 | 3,199 |
- Transfer to stage 2 | (3) | |
- Transfer to stage 3 | 131 | 77 |
Change due to change of credit risk | (1,433) | 38 |
Sale of loans | (279) | |
Write-offs | (79) | (515) |
Recovery of previously written-off assets | 975 | 184 |
Ending Balance | 2,295 | 2,704 |
Stage 3 | Accumulated Depreciation | Loans to individuals | ||
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | ||
Beginning balance | 8,147 | 3,336 |
- Transfer to stage 1 | (176) | (224) |
- Transfer to stage 2 | (281) | (179) |
- Transfer to stage 3 | 4,969 | 3,850 |
Change due to change of credit risk | 2,887 | 2,613 |
Sale of loans | (4,324) | |
Write-offs | (3,282) | (1,631) |
Recovery of previously written-off assets | 582 | 382 |
Ending Balance | ₽ 8,522 | ₽ 8,147 |
BANK FINANCIAL ASSETS AND LIA_7
BANK FINANCIAL ASSETS AND LIABILITIES - Information on quality of loans to individuals and legal entities (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | ₽ 175,476 | ₽ 89,134 |
Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 26,977 | 24,594 |
Accumulated Depreciation | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | (17,976) | (12,692) |
Accumulated Depreciation | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | (3,138) | (3,744) |
Low to fair risk | Gross Book Value | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 175,423 | 88,058 |
Low to fair risk | Gross Book Value | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 21,296 | 15,083 |
Monitoring | Gross Book Value | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 7,957 | 4,122 |
Monitoring | Gross Book Value | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 5,772 | 9,755 |
Doubtful | Gross Book Value | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 767 | 877 |
Impaired | Gross Book Value | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 10,072 | 9,646 |
Impaired | Gross Book Value | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 2,280 | 2,623 |
Stage 1 | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 168,574 | 84,959 |
Stage 1 | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 25,457 | 17,343 |
Stage 1 | Accumulated Depreciation | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | (6,093) | (3,099) |
Stage 1 | Accumulated Depreciation | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | (818) | (899) |
Stage 1 | Low to fair risk | Gross Book Value | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 174,667 | 88,058 |
Stage 1 | Low to fair risk | Gross Book Value | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 20,575 | 12,136 |
Stage 1 | Monitoring | Gross Book Value | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 5,700 | 6,106 |
Stage 2 | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 4,520 | 2,370 |
Stage 2 | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 768 | 6,455 |
Stage 2 | Accumulated Depreciation | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | (3,361) | (1,446) |
Stage 2 | Accumulated Depreciation | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | (25) | (141) |
Stage 2 | Low to fair risk | Gross Book Value | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 756 | |
Stage 2 | Low to fair risk | Gross Book Value | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 721 | 2,947 |
Stage 2 | Monitoring | Gross Book Value | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 7,125 | 3,816 |
Stage 2 | Monitoring | Gross Book Value | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 72 | 3,649 |
Stage 3 | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 2,382 | 1,805 |
Stage 3 | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 752 | 796 |
Stage 3 | Accumulated Depreciation | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | (8,522) | (8,147) |
Stage 3 | Accumulated Depreciation | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | (2,295) | (2,704) |
Stage 3 | Monitoring | Gross Book Value | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 832 | 306 |
Stage 3 | Doubtful | Gross Book Value | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 767 | 877 |
Stage 3 | Impaired | Gross Book Value | Loans to individuals | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | 10,072 | 9,646 |
Stage 3 | Impaired | Gross Book Value | Loans to legal entities | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Loans to customers | ₽ 2,280 | ₽ 2,623 |
BANK FINANCIAL ASSETS AND LIA_8
BANK FINANCIAL ASSETS AND LIABILITIES - Information of credit quality of loans (Details) ₽ in Millions | Dec. 31, 2021RUB (₽) | Dec. 31, 2020RUB (₽) | Dec. 31, 2020SCR (SRe) |
Credit quality of loans | |||
Net loans | ₽ 362,144 | ₽ 315,765 | |
Loans to individuals | |||
Credit quality of loans | |||
Net loans | ₽ 175,476 | 89,134 | SRe 12 |
Provision for ECL to gross loans | 9.00% | ||
Loans to individuals | Gross Book Value | |||
Credit quality of loans | |||
Net loans | ₽ 193,452 | 101,826 | |
Loans to individuals | Accumulated Depreciation | |||
Credit quality of loans | |||
Net loans | (17,976) | (12,692) | |
Loans to individuals | Collectively assessed | |||
Credit quality of loans | |||
Net loans | ₽ 175,013 | 88,784 | 12 |
Provision for ECL to gross loans | 9.00% | ||
Loans to individuals | Collectively assessed | Not past due | |||
Credit quality of loans | |||
Net loans | ₽ 169,125 | 84,955 | 4 |
Provision for ECL to gross loans | 4.00% | ||
Loans to individuals | Collectively assessed | 1 - 30 days past due | |||
Credit quality of loans | |||
Net loans | ₽ 2,899 | 1,863 | SRe 21 |
Provision for ECL to gross loans | 27.00% | ||
Loans to individuals | Collectively assessed | 31 - 60 days past due | |||
Credit quality of loans | |||
Net loans | ₽ 767 | ₽ 335 | |
Provision for ECL to gross loans | 62.00% | 60.00% | 60.00% |
Loans to individuals | Collectively assessed | 60 - 90 days past due | |||
Credit quality of loans | |||
Net loans | ₽ 491 | ₽ 173 | |
Provision for ECL to gross loans | 69.00% | 71.00% | 71.00% |
Loans to individuals | Collectively assessed | 91 to 180 days | |||
Credit quality of loans | |||
Net loans | ₽ 749 | ₽ 366 | |
Provision for ECL to gross loans | 77.00% | 79.00% | 79.00% |
Loans to individuals | Collectively assessed | over 180 days | |||
Credit quality of loans | |||
Net loans | ₽ 982 | ₽ 1,092 | |
Provision for ECL to gross loans | 85.00% | 85.00% | 85.00% |
Loans to individuals | Collectively assessed | Gross Book Value | |||
Credit quality of loans | |||
Net loans | ₽ 192,891 | ₽ 101,134 | |
Loans to individuals | Collectively assessed | Gross Book Value | Not past due | |||
Credit quality of loans | |||
Net loans | 175,422 | 88,056 | |
Loans to individuals | Collectively assessed | Gross Book Value | 1 - 30 days past due | |||
Credit quality of loans | |||
Net loans | 3,989 | 2,370 | |
Loans to individuals | Collectively assessed | Gross Book Value | 31 - 60 days past due | |||
Credit quality of loans | |||
Net loans | 2,007 | 841 | |
Loans to individuals | Collectively assessed | Gross Book Value | 60 - 90 days past due | |||
Credit quality of loans | |||
Net loans | 1,584 | 605 | |
Loans to individuals | Collectively assessed | Gross Book Value | 91 to 180 days | |||
Credit quality of loans | |||
Net loans | 3,248 | 1,739 | |
Loans to individuals | Collectively assessed | Gross Book Value | over 180 days | |||
Credit quality of loans | |||
Net loans | 6,641 | 7,523 | |
Loans to individuals | Collectively assessed | Accumulated Depreciation | |||
Credit quality of loans | |||
Net loans | (17,878) | (12,350) | |
Loans to individuals | Collectively assessed | Accumulated Depreciation | Not past due | |||
Credit quality of loans | |||
Net loans | (6,297) | (3,101) | |
Loans to individuals | Collectively assessed | Accumulated Depreciation | 1 - 30 days past due | |||
Credit quality of loans | |||
Net loans | (1,090) | (507) | |
Loans to individuals | Collectively assessed | Accumulated Depreciation | 31 - 60 days past due | |||
Credit quality of loans | |||
Net loans | (1,240) | (506) | |
Loans to individuals | Collectively assessed | Accumulated Depreciation | 60 - 90 days past due | |||
Credit quality of loans | |||
Net loans | (1,093) | (432) | |
Loans to individuals | Collectively assessed | Accumulated Depreciation | 91 to 180 days | |||
Credit quality of loans | |||
Net loans | (2,499) | (1,373) | |
Loans to individuals | Collectively assessed | Accumulated Depreciation | over 180 days | |||
Credit quality of loans | |||
Net loans | (5,659) | (6,431) | |
Loans to individuals | Individually assessed | |||
Credit quality of loans | |||
Net loans | ₽ 463 | 350 | SRe 49 |
Provision for ECL to gross loans | 17.00% | ||
Loans to individuals | Individually assessed | Not past due | |||
Credit quality of loans | |||
Net loans | ₽ 342 | 166 | 35 |
Provision for ECL to gross loans | 6.00% | ||
Loans to individuals | Individually assessed | 1 - 30 days past due | |||
Credit quality of loans | |||
Net loans | 34 | SRe 0 | |
Provision for ECL to gross loans | 0.00% | ||
Loans to individuals | Individually assessed | 31 - 60 days past due | |||
Credit quality of loans | |||
Net loans | ₽ 8 | ₽ 7 | |
Provision for ECL to gross loans | 0.00% | 0.00% | 0.00% |
Loans to individuals | Individually assessed | 60 - 90 days past due | |||
Credit quality of loans | |||
Net loans | ₽ 2 | ||
Provision for ECL to gross loans | 33.00% | ||
Loans to individuals | Individually assessed | 91 to 180 days | |||
Credit quality of loans | |||
Net loans | ₽ 4 | ₽ 6 | |
Provision for ECL to gross loans | 20.00% | 0.00% | 0.00% |
Loans to individuals | Individually assessed | over 180 days | |||
Credit quality of loans | |||
Net loans | ₽ 107 | ₽ 137 | |
Provision for ECL to gross loans | 41.00% | 64.00% | 64.00% |
Loans to individuals | Individually assessed | Gross Book Value | |||
Credit quality of loans | |||
Net loans | ₽ 561 | ₽ 692 | |
Loans to individuals | Individually assessed | Gross Book Value | Not past due | |||
Credit quality of loans | |||
Net loans | 364 | 256 | |
Loans to individuals | Individually assessed | Gross Book Value | 1 - 30 days past due | |||
Credit quality of loans | |||
Net loans | 46 | ||
Loans to individuals | Individually assessed | Gross Book Value | 31 - 60 days past due | |||
Credit quality of loans | |||
Net loans | 8 | 7 | |
Loans to individuals | Individually assessed | Gross Book Value | 60 - 90 days past due | |||
Credit quality of loans | |||
Net loans | 3 | ||
Loans to individuals | Individually assessed | Gross Book Value | 91 to 180 days | |||
Credit quality of loans | |||
Net loans | 5 | 6 | |
Loans to individuals | Individually assessed | Gross Book Value | over 180 days | |||
Credit quality of loans | |||
Net loans | 181 | 377 | |
Loans to individuals | Individually assessed | Accumulated Depreciation | |||
Credit quality of loans | |||
Net loans | (98) | (342) | |
Loans to individuals | Individually assessed | Accumulated Depreciation | Not past due | |||
Credit quality of loans | |||
Net loans | (22) | (90) | |
Loans to individuals | Individually assessed | Accumulated Depreciation | 1 - 30 days past due | |||
Credit quality of loans | |||
Net loans | (12) | ||
Loans to individuals | Individually assessed | Accumulated Depreciation | 60 - 90 days past due | |||
Credit quality of loans | |||
Net loans | (1) | ||
Loans to individuals | Individually assessed | Accumulated Depreciation | 91 to 180 days | |||
Credit quality of loans | |||
Net loans | (1) | ||
Loans to individuals | Individually assessed | Accumulated Depreciation | over 180 days | |||
Credit quality of loans | |||
Net loans | (74) | (240) | |
Medium-sized enterprises and small businesses | Collectively assessed | |||
Credit quality of loans | |||
Net loans | ₽ 1,267 | 1,287 | SRe 26 |
Provision for ECL to gross loans | 26.00% | ||
Medium-sized enterprises and small businesses | Collectively assessed | Not past due | |||
Credit quality of loans | |||
Net loans | ₽ 1,057 | 1,009 | 2 |
Provision for ECL to gross loans | 2.00% | ||
Medium-sized enterprises and small businesses | Collectively assessed | 1 - 30 days past due | |||
Credit quality of loans | |||
Net loans | ₽ 11 | 23 | SRe 21 |
Provision for ECL to gross loans | 42.00% | ||
Medium-sized enterprises and small businesses | Collectively assessed | 31 - 60 days past due | |||
Credit quality of loans | |||
Net loans | ₽ 1 | ₽ 5 | |
Provision for ECL to gross loans | 93.00% | 37.00% | 37.00% |
Medium-sized enterprises and small businesses | Collectively assessed | 60 - 90 days past due | |||
Credit quality of loans | |||
Net loans | ₽ 1 | ₽ 3 | |
Provision for ECL to gross loans | 91.00% | 64.00% | 64.00% |
Medium-sized enterprises and small businesses | Collectively assessed | 91 to 180 days | |||
Credit quality of loans | |||
Net loans | ₽ 3 | ₽ 10 | |
Provision for ECL to gross loans | 79.00% | 54.00% | 54.00% |
Medium-sized enterprises and small businesses | Collectively assessed | over 180 days | |||
Credit quality of loans | |||
Net loans | ₽ 194 | ₽ 237 | |
Provision for ECL to gross loans | 66.00% | 63.00% | 63.00% |
Medium-sized enterprises and small businesses | Collectively assessed | Gross Book Value | |||
Credit quality of loans | |||
Net loans | ₽ 1,706 | ₽ 1,736 | |
Medium-sized enterprises and small businesses | Collectively assessed | Gross Book Value | Not past due | |||
Credit quality of loans | |||
Net loans | 1,079 | 1,025 | |
Medium-sized enterprises and small businesses | Collectively assessed | Gross Book Value | 1 - 30 days past due | |||
Credit quality of loans | |||
Net loans | 19 | 29 | |
Medium-sized enterprises and small businesses | Collectively assessed | Gross Book Value | 31 - 60 days past due | |||
Credit quality of loans | |||
Net loans | 15 | 8 | |
Medium-sized enterprises and small businesses | Collectively assessed | Gross Book Value | 60 - 90 days past due | |||
Credit quality of loans | |||
Net loans | 11 | 8 | |
Medium-sized enterprises and small businesses | Collectively assessed | Gross Book Value | 91 to 180 days | |||
Credit quality of loans | |||
Net loans | 14 | 22 | |
Medium-sized enterprises and small businesses | Collectively assessed | Gross Book Value | over 180 days | |||
Credit quality of loans | |||
Net loans | 568 | 644 | |
Medium-sized enterprises and small businesses | Collectively assessed | Accumulated Depreciation | |||
Credit quality of loans | |||
Net loans | (439) | (449) | |
Medium-sized enterprises and small businesses | Collectively assessed | Accumulated Depreciation | Not past due | |||
Credit quality of loans | |||
Net loans | (22) | (16) | |
Medium-sized enterprises and small businesses | Collectively assessed | Accumulated Depreciation | 1 - 30 days past due | |||
Credit quality of loans | |||
Net loans | (8) | (6) | |
Medium-sized enterprises and small businesses | Collectively assessed | Accumulated Depreciation | 31 - 60 days past due | |||
Credit quality of loans | |||
Net loans | (14) | (3) | |
Medium-sized enterprises and small businesses | Collectively assessed | Accumulated Depreciation | 60 - 90 days past due | |||
Credit quality of loans | |||
Net loans | (10) | (5) | |
Medium-sized enterprises and small businesses | Collectively assessed | Accumulated Depreciation | 91 to 180 days | |||
Credit quality of loans | |||
Net loans | (11) | (12) | |
Medium-sized enterprises and small businesses | Collectively assessed | Accumulated Depreciation | over 180 days | |||
Credit quality of loans | |||
Net loans | ₽ (374) | ₽ (407) |
BANK FINANCIAL ASSETS AND LIA_9
BANK FINANCIAL ASSETS AND LIABILITIES - Structure and amounts of current and non current bank deposits and liabilities (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Customer accounts | ₽ 192,177 | ₽ 139,438 |
Due to banks and other financial institutions | 21,430 | 24,644 |
Debt securities issued | 5,581 | 1,840 |
Financial liabilities at fair value through profit or loss | 2 | |
Other financial liabilities | 2,181 | 1,753 |
Total bank deposits and liabilities | 221,369 | 167,677 |
Less: current portion | (207,055) | (165,794) |
Total bank deposits and liabilities, non-current | ₽ 14,313 | ₽ 1,883 |
BANK FINANCIAL ASSETS AND LI_10
BANK FINANCIAL ASSETS AND LIABILITIES - Structure and amounts of customer accounts and (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Customer accounts | ₽ 192,177 | ₽ 139,438 |
Legal entities - Current/settlement accounts | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Customer accounts | 13,311 | 13,163 |
Legal entities - Term deposits | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Customer accounts | 63,003 | 19,466 |
Individuals - Current/settlement accounts | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Customer accounts | 20,654 | 18,219 |
Individuals - Term deposits | ||
BANK FINANCIAL ASSETS AND LIABILITIES | ||
Customer accounts | ₽ 95,209 | ₽ 88,590 |
BANK FINANCIAL ASSETS AND LI_11
BANK FINANCIAL ASSETS AND LIABILITIES - Structure and amounts of due to banks and loans under repurchase agreement (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2015 |
Disclosure of financial liabilities | |||
Total due to banks | ₽ 21,430 | ₽ 24,644 | |
Subordinated debt | MTS Bank | |||
Disclosure of financial liabilities | |||
Subordinated debt | ₽ 7,246 | ||
Loans under repurchase agreements | |||
Disclosure of financial liabilities | |||
Total due to banks | 9,333 | 20,540 | |
Loans under repurchase agreements | Subordinated securities loan | |||
Disclosure of financial liabilities | |||
Subordinated debt | 0 | 6,374 | |
Loans under repurchase agreements | At FVTPL | |||
Disclosure of financial liabilities | |||
Financial assets, at fair value | 1,946 | 9,678 | |
Loans under repurchase agreements | At amortized cost | |||
Disclosure of financial liabilities | |||
Financial assets, at fair value | 8,624 | 1,557 | |
Loans and term deposits from banks and other financial institutions | |||
Disclosure of financial liabilities | |||
Total due to banks | 9,474 | 2,732 | |
Correspondent accounts of other banks | |||
Disclosure of financial liabilities | |||
Total due to banks | ₽ 2,623 | ₽ 1,372 |
BANK FINANCIAL ASSETS AND LI_12
BANK FINANCIAL ASSETS AND LIABILITIES - Group's liquidity analysis for its derivative financial instruments (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | ₽ 257,920 | ₽ 186,446 |
Financial liabilities | (226,186) | (169,741) |
Fixed interest rate risk | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (178,801) | (130,658) |
Fixed interest rate risk | Due to banks and other financial institutions | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (18,807) | (23,089) |
Fixed interest rate risk | Customer accounts | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (153,681) | (105,195) |
Fixed interest rate risk | Debt securities issued | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (5,581) | (1,840) |
Fixed interest rate risk | Lease obligations | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (732) | (534) |
Fixed interest rate risk | Due from banks | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 24,770 | 21,824 |
Fixed interest rate risk | Loans to customers | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 1,781 | 16,915 |
Fixed interest rate risk | Investment securities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 202,453 | 113,584 |
Non-interest bearing financial instruments | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 20,031 | |
Financial liabilities | (47,385) | (39,083) |
Non-interest bearing financial instruments | Currency forwards and options not designated as hedges | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (2) | |
Non-interest bearing financial instruments | Due to banks and other financial institutions | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (2,623) | (1,372) |
Non-interest bearing financial instruments | Customer accounts | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (38,496) | (33,908) |
Non-interest bearing financial instruments | Other financial liabilities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (6,266) | (3,801) |
Non-interest bearing financial instruments | Due from banks | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 15,974 | 22,274 |
Non-interest bearing financial instruments | Currency forwards and options not designated as hedges | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 1,180 | |
Non-interest bearing financial instruments | Other financial assets | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 1,733 | 2 |
1 - 30 days past due | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 54,790 | 67,631 |
Financial liabilities | (98,107) | (80,341) |
Liquidity gap | (43,317) | (12,710) |
Stable source of funding | 43,901 | 41,502 |
Net liquidity gap | 584 | 28,792 |
Cumulative liquidity gap | 584 | 28,792 |
1 - 30 days past due | Fixed interest rate risk | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (54,131) | (43,223) |
1 - 30 days past due | Fixed interest rate risk | Due to banks and other financial institutions | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (18,788) | (22,962) |
1 - 30 days past due | Fixed interest rate risk | Customer accounts | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (35,294) | (19,046) |
1 - 30 days past due | Fixed interest rate risk | Debt securities issued | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (32) | (1,204) |
1 - 30 days past due | Fixed interest rate risk | Lease obligations | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (17) | (11) |
1 - 30 days past due | Fixed interest rate risk | Due from banks | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 24,769 | 21,823 |
1 - 30 days past due | Fixed interest rate risk | Loans to customers | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 1,781 | 16,915 |
1 - 30 days past due | Fixed interest rate risk | Investment securities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 9,985 | 4,547 |
1 - 30 days past due | Non-interest bearing financial instruments | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 18,246 | |
Financial liabilities | (43,976) | (37,118) |
1 - 30 days past due | Non-interest bearing financial instruments | Currency forwards and options not designated as hedges | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (1) | |
1 - 30 days past due | Non-interest bearing financial instruments | Due to banks and other financial institutions | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (2,623) | (1,372) |
1 - 30 days past due | Non-interest bearing financial instruments | Customer accounts | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (38,496) | (33,908) |
1 - 30 days past due | Non-interest bearing financial instruments | Other financial liabilities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (2,857) | (1,837) |
1 - 30 days past due | Non-interest bearing financial instruments | Due from banks | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 15,974 | 22,274 |
1 - 30 days past due | Non-interest bearing financial instruments | Currency forwards and options not designated as hedges | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 1,180 | |
1 - 30 days past due | Non-interest bearing financial instruments | Other financial assets | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 1 | |
1 month to 3 months | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 19,368 | 8,426 |
Financial liabilities | (14,992) | (15,581) |
Liquidity gap | 4,376 | (7,155) |
Stable source of funding | (2,392) | 2,342 |
Net liquidity gap | 1,984 | (4,813) |
Cumulative liquidity gap | 2,568 | 23,979 |
1 month to 3 months | Fixed interest rate risk | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (13,845) | (15,088) |
1 month to 3 months | Fixed interest rate risk | Customer accounts | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (13,801) | (15,049) |
1 month to 3 months | Fixed interest rate risk | Lease obligations | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (44) | (39) |
1 month to 3 months | Fixed interest rate risk | Investment securities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 18,848 | 8,134 |
1 month to 3 months | Non-interest bearing financial instruments | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 6 | |
Financial liabilities | (1,147) | (493) |
1 month to 3 months | Non-interest bearing financial instruments | Currency forwards and options not designated as hedges | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (1) | |
1 month to 3 months | Non-interest bearing financial instruments | Other financial liabilities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (1,147) | (492) |
1 month to 3 months | Non-interest bearing financial instruments | Other financial assets | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 1 | |
3 months to 1 year | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 55,912 | 35,201 |
Financial liabilities | (98,284) | (71,781) |
Liquidity gap | (42,372) | (36,580) |
Stable source of funding | 43,814 | 30,933 |
Net liquidity gap | 1,442 | (5,647) |
Cumulative liquidity gap | 4,010 | 18,332 |
3 months to 1 year | Fixed interest rate risk | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (96,022) | (70,309) |
3 months to 1 year | Fixed interest rate risk | Due to banks and other financial institutions | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (127) | |
3 months to 1 year | Fixed interest rate risk | Customer accounts | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (95,472) | (69,677) |
3 months to 1 year | Fixed interest rate risk | Debt securities issued | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (350) | (341) |
3 months to 1 year | Fixed interest rate risk | Lease obligations | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (200) | (164) |
3 months to 1 year | Fixed interest rate risk | Investment securities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 50,342 | 34,523 |
3 months to 1 year | Non-interest bearing financial instruments | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 15 | |
Financial liabilities | (2,262) | (1,472) |
3 months to 1 year | Non-interest bearing financial instruments | Other financial liabilities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (2,262) | (1,472) |
2023-2027 | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 112,757 | 64,198 |
Financial liabilities | (14,803) | (2,038) |
Liquidity gap | 97,954 | 62,160 |
Stable source of funding | (3,519) | (15,732) |
Net liquidity gap | 94,435 | 46,428 |
Cumulative liquidity gap | 98,445 | 64,760 |
2023-2027 | Fixed interest rate risk | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (14,803) | (2,038) |
2023-2027 | Fixed interest rate risk | Due to banks and other financial institutions | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (19) | |
2023-2027 | Fixed interest rate risk | Customer accounts | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (9,114) | (1,423) |
2023-2027 | Fixed interest rate risk | Debt securities issued | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (5,199) | (295) |
2023-2027 | Fixed interest rate risk | Lease obligations | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial liabilities | (471) | (320) |
2023-2027 | Fixed interest rate risk | Investment securities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 109,949 | 55,438 |
Thereafter | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 11,346 | 8,971 |
Liquidity gap | 11,346 | 8,971 |
Stable source of funding | (81,804) | (59,045) |
Net liquidity gap | (70,458) | (50,074) |
Cumulative liquidity gap | 27,987 | 14,686 |
Thereafter | Fixed interest rate risk | Investment securities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 11,346 | 8,971 |
Maturity undefined | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 3,747 | 2,019 |
Maturity undefined | Fixed interest rate risk | Due from banks | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 1 | 1 |
Maturity undefined | Fixed interest rate risk | Investment securities | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 1,983 | ₽ 1,971 |
Maturity undefined | Non-interest bearing financial instruments | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | 1,764 | |
Maturity undefined | Non-interest bearing financial instruments | Other financial assets | ||
Group's liquidity analysis for its derivative financial instruments | ||
Financial assets | ₽ 1,733 |
BANK FINANCIAL ASSETS AND LI_13
BANK FINANCIAL ASSETS AND LIABILITIES - Group's remaining contractual maturity for its non-derivative financial liabilities (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | ₽ (231,232) | ₽ (171,840) |
Bank guarantees, contingent liabilities | 21.9 | 9.8 |
Fixed interest rate risk | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (183,847) | (132,759) |
Fixed interest rate risk | Due to banks | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | ₽ (18,807) | ₽ (23,089) |
Weighted average interest rate | 8.40% | 4.40% |
Fixed interest rate risk | Customer accounts | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | ₽ (158,195) | ₽ (107,263) |
Weighted average interest rate | 6.30% | 5.90% |
Fixed interest rate risk | Debt securities issued | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | ₽ (6,117) | ₽ (1,873) |
Weighted average interest rate | 7.30% | 4.00% |
Fixed interest rate risk | Lease obligations | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | ₽ (728) | ₽ (534) |
Weighted average interest rate | 5.20% | 6.10% |
Non-interest bearing financial instruments | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | ₽ (47,385) | ₽ (39,081) |
Non-interest bearing financial instruments | Due to banks | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (2,623) | (1,372) |
Non-interest bearing financial instruments | Customer accounts | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (38,496) | (33,908) |
Non-interest bearing financial instruments | Other financial liabilities | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (6,266) | (3,801) |
1 - 30 days past due | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (98,210) | (80,558) |
1 - 30 days past due | Fixed interest rate risk | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (54,234) | (43,441) |
1 - 30 days past due | Fixed interest rate risk | Due to banks | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (18,788) | (22,962) |
1 - 30 days past due | Fixed interest rate risk | Customer accounts | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (35,402) | (19,265) |
1 - 30 days past due | Fixed interest rate risk | Debt securities issued | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (33) | (1,204) |
1 - 30 days past due | Fixed interest rate risk | Lease obligations | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (11) | (10) |
1 - 30 days past due | Non-interest bearing financial instruments | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (43,976) | (37,117) |
1 - 30 days past due | Non-interest bearing financial instruments | Due to banks | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (2,623) | (1,372) |
1 - 30 days past due | Non-interest bearing financial instruments | Customer accounts | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (38,496) | (33,908) |
1 - 30 days past due | Non-interest bearing financial instruments | Other financial liabilities | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (2,857) | (1,837) |
1 month to 3 months | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (15,156) | (15,824) |
1 month to 3 months | Fixed interest rate risk | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (14,009) | (15,332) |
1 month to 3 months | Fixed interest rate risk | Customer accounts | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (13,964) | (15,292) |
1 month to 3 months | Fixed interest rate risk | Lease obligations | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (45) | (40) |
1 month to 3 months | Non-interest bearing financial instruments | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (1,147) | (492) |
1 month to 3 months | Non-interest bearing financial instruments | Other financial liabilities | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (1,147) | (492) |
3 months to 1 year | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (101,841) | (73,360) |
3 months to 1 year | Fixed interest rate risk | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (99,579) | (71,888) |
3 months to 1 year | Fixed interest rate risk | Due to banks | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (19) | (127) |
3 months to 1 year | Fixed interest rate risk | Customer accounts | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (98,665) | (71,248) |
3 months to 1 year | Fixed interest rate risk | Debt securities issued | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (695) | (348) |
3 months to 1 year | Fixed interest rate risk | Lease obligations | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (200) | (165) |
3 months to 1 year | Non-interest bearing financial instruments | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (2,262) | (1,472) |
3 months to 1 year | Non-interest bearing financial instruments | Other financial liabilities | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (2,262) | (1,472) |
2023-2027 | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (16,024) | (2,098) |
2023-2027 | Fixed interest rate risk | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (16,024) | (2,098) |
2023-2027 | Fixed interest rate risk | Customer accounts | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (10,164) | (1,458) |
2023-2027 | Fixed interest rate risk | Debt securities issued | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (5,389) | (321) |
2023-2027 | Fixed interest rate risk | Lease obligations | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (471) | ₽ (319) |
Thereafter | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (1) | |
Thereafter | Fixed interest rate risk | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | (1) | |
Thereafter | Fixed interest rate risk | Lease obligations | ||
Analysis of the liquidity and interest rate risks | ||
Financial liabilities | ₽ (1) |
BANK FINANCIAL ASSETS AND LI_14
BANK FINANCIAL ASSETS AND LIABILITIES - Maximum amount of credit risk on guarantees issued and commitments on loans (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Credit risk exposure | ||
Commitments on loans | ₽ 37,537 | ₽ 23,195 |
Guarantees issued | 16,155 | 23,757 |
Less provision | (752) | (586) |
Total capital commitments | 52,940 | 46,366 |
Stage 1 | ||
Credit risk exposure | ||
Commitments on loans | 36,759 | 21,410 |
Guarantees issued | 13,798 | 21,426 |
Less provision | (687) | (340) |
Total capital commitments | 49,870 | 42,496 |
Stage 2 | ||
Credit risk exposure | ||
Commitments on loans | 745 | 1,729 |
Guarantees issued | 2,257 | 2,084 |
Less provision | (15) | (33) |
Total capital commitments | 2,987 | 3,780 |
Stage 3 | ||
Credit risk exposure | ||
Commitments on loans | 33 | 56 |
Guarantees issued | 100 | 247 |
Less provision | (50) | (213) |
Total capital commitments | ₽ 83 | ₽ 90 |
RELATED PARTIES - Balances of r
RELATED PARTIES - Balances of related parties' transactions (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
RELATED PARTIES | ||
Accounts receivable, non-current | ₽ 5,000 | ₽ 5,209 |
Accounts receivable, related parties | 2,287 | 8,980 |
Total non-current assets | 13,802 | 13,063 |
Total current assets | 13,783 | 15,992 |
TOTAL ASSETS FROM RELATED PARTIES | 27,585 | 29,055 |
Accounts payable, related parties | 4,107 | 3,146 |
Total non-current liabilities | 5,471 | 5,002 |
Total current liabilities | 73,590 | 57,924 |
TOTAL LIABILITIES TO RELATED PARTIES | 79,061 | 62,926 |
Sistema's subsidiaries | ||
RELATED PARTIES | ||
Property, plant and equipment | 1,347 | 1,096 |
Other investments | 117 | 370 |
Accounts receivable, non-current | 5,000 | 5,209 |
Bank loans to customers - non-current | 1,179 | 1,480 |
Accounts receivable, related parties | 1,255 | 4,571 |
Bank loans to customers - current | 820 | 3 |
Short-term investments | 2,377 | 3 |
Cash and cash equivalents | 1,311 | 321 |
Other financial assets | 300 | 461 |
Other assets | 1,059 | 1,518 |
Lease obligations | 3,968 | 4,801 |
Accounts payable, related parties | 2,756 | 1,631 |
Lease obligations | 551 | 724 |
Bank deposits and liabilities, current | 22,312 | 10,752 |
Sistema's associates | ||
RELATED PARTIES | ||
Bank loans to customers - non-current | 2,587 | 1,376 |
Bank loans to customers - current | 2,078 | 2,819 |
Accounts payable, related parties | 632 | 958 |
Bank deposits and liabilities, current | 9,163 | 2,689 |
The Group's associates | ||
RELATED PARTIES | ||
Other investments | 625 | 159 |
Accounts receivable, related parties | 911 | 1,397 |
Accounts payable, related parties | 711 | 553 |
Borrowings | 2,129 | 1,776 |
Sistema, parent company | ||
RELATED PARTIES | ||
Accounts receivable, related parties | 2,829 | |
Short-term investments | 1,443 | |
Other financial assets | 1,829 | 1,831 |
Bank deposits and liabilities, current | 2,042 | 3,218 |
Key management personnel of the Group and its parent | ||
RELATED PARTIES | ||
Bank loans to customers - current | 87 | 48 |
Bank deposits and liabilities | 1,433 | 124 |
Bank deposits and liabilities, current | 32,886 | 34,708 |
Other related parties | ||
RELATED PARTIES | ||
Other investments | 2 | |
Deferred Other related parties | ||
RELATED PARTIES | ||
Property, plant and equipment | 34 | 13 |
Accounts receivable, related parties | 121 | 183 |
Other financial assets | 109 | |
Other assets | 83 | 8 |
Lease obligations | 70 | 77 |
Accounts payable, related parties | 8 | 4 |
Borrowings | 11 | 16 |
Lease obligations | 13 | 14 |
Bank deposits and liabilities, current | 376 | 881 |
Gross Book Value | Sistema's subsidiaries | ||
RELATED PARTIES | ||
Right-of-use assets | 4,432 | 4,845 |
Gross Book Value | Deferred Other related parties | ||
RELATED PARTIES | ||
Right-of-use assets | 111 | 112 |
Accumulated Depreciation | Sistema's subsidiaries | ||
RELATED PARTIES | ||
Right-of-use assets | (1,586) | (1,580) |
Accumulated Depreciation | Deferred Other related parties | ||
RELATED PARTIES | ||
Right-of-use assets | ₽ (46) | ₽ (17) |
RELATED PARTIES - Revenue and o
RELATED PARTIES - Revenue and operating transactions with related parties (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RELATED PARTIES | |||
Total revenues from related parties | ₽ 6,359 | ₽ 5,832 | ₽ 4,932 |
Operating profit / (loss) | (125) | 2,443 | 3,697 |
Profit before tax | 823 | 3,896 | 5,806 |
Impairment recognized for bad or doubtful debts from related parties | 0 | ||
Expenses recognized for bad or doubtful debts from related parties | 0 | 0 | 0 |
Sistema's subsidiaries | |||
RELATED PARTIES | |||
Total revenues from related parties | 4,294 | 4,371 | 3,740 |
Cost of services | 2,143 | 599 | 507 |
Selling, general and administrative expenses | 728 | 625 | 672 |
Other operating income / (expense) | 2,831 | 2,160 | 5,203 |
Finance income / (loss) | 935 | 1,492 | 1,259 |
Sistema's associates | |||
RELATED PARTIES | |||
Total revenues from related parties | 752 | 615 | 407 |
Cost of services | 281 | 127 | 139 |
The Group's associates | |||
RELATED PARTIES | |||
Total revenues from related parties | 622 | 418 | 550 |
Finance income / (loss) | (101) | (63) | 475 |
Other non-operating income / (expense) | (278) | ||
Sistema, parent company | |||
RELATED PARTIES | |||
Cost of services | 233 | 141 | 377 |
Finance income / (loss) | 79 | 295 | 367 |
Key management personnel of the Group and its parent | |||
RELATED PARTIES | |||
Cost of services | 1,476 | 1,830 | 1,973 |
Selling, general and administrative expenses | 4,256 | 2,003 | 2,372 |
Deferred Other related parties | |||
RELATED PARTIES | |||
Total revenues from related parties | 691 | 428 | 235 |
Cost of services | 173 | 145 | 241 |
Selling, general and administrative expenses | 84 | 66 | 144 |
Other operating income / (expense) | 59 | (13) | (13) |
Finance income / (loss) | (6) | ₽ 7 | ₽ 8 |
Other non-operating income / (expense) | ₽ 41 |
RELATED PARTIES - Purchases of
RELATED PARTIES - Purchases of property, plant and equipment, intangible assets and other assets, related parties (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of transactions between related parties [line items] | |||
Purchases of property, plant and equipment, intangible assets and other assets | ₽ 12,982 | ₽ 9,862 | ₽ 1,244 |
Sistema's subsidiaries | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of property, plant and equipment, intangible assets and other assets | 10,330 | 3,324 | 656 |
Sistema's associates | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of property, plant and equipment, intangible assets and other assets | 2,530 | 6,299 | 410 |
The Group's associates | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of property, plant and equipment, intangible assets and other assets | ₽ 122 | 127 | ₽ 178 |
Other related parties | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of property, plant and equipment, intangible assets and other assets | ₽ 112 |
RELATED PARTIES - Additional in
RELATED PARTIES - Additional information of related parties (Details) - RUB (₽) ₽ in Millions | 1 Months Ended | 4 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021 | Oct. 31, 2020 | Mar. 31, 2019 | May 31, 2015 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RELATED PARTIES | |||||||
Lease payments in favour of related parties | ₽ 1,361 | ₽ 1,530 | ₽ 1,240 | ||||
Right-of-use assets | ₽ 132,343 | 132,343 | 130,503 | ||||
Investments in associates and joint ventures | ₽ 8,735 | 8,735 | 8,555 | ||||
Key management remuneration | 1,885 | 1,309 | 1,574 | ||||
Key management remuneration, social contributions | 374 | 214 | 219 | ||||
Key management remuneration as base salaries | 719 | 690 | 917 | ||||
Key management remuneration as bonus | 1,166 | 619 | 657 | ||||
Cash-settled and equity-settled share-based payments | 2,929 | 694 | 798 | ||||
Key management remuneration, social contributions included in share-based payments | ₽ 338 | 79 | 53 | ||||
Buildings | |||||||
RELATED PARTIES | |||||||
Installment of consideration payable period | 10 years | ||||||
Installment of sale consideration, interest rate (as a percent) | 9.00% | ||||||
Right-of-use assets | 3,123 | ||||||
Lease obligation | 5,197 | ||||||
Recognized gain | ₽ 1,745 | ||||||
Maximum | Buildings | |||||||
RELATED PARTIES | |||||||
Lease term | 15 years | ||||||
Sistema | |||||||
RELATED PARTIES | |||||||
Ownership interest sold (as a percent) | 100.00% | 18.69% | |||||
Proceeds from sale of ownership interest | ₽ 7,902 | ||||||
Amount receivable | 2,829 | ||||||
Business Nedvizhimost. | |||||||
RELATED PARTIES | |||||||
Variable interest rate | 1.50% | 1.50% | |||||
Amount receivable | ₽ 3,372 | ₽ 3,372 | |||||
Period of coupon notes | 5 years | ||||||
Borrowings, interest rate | 10.80% | 10.80% | |||||
Proceeds from issuance of bonds | ₽ 2,100 | ||||||
Investments in associates and joint ventures | ₽ 2,105 | ₽ 2,105 | |||||
Business Nedvizhimost. | Buildings | |||||||
RELATED PARTIES | |||||||
Carrying value of buildings sold | 1,479 | ||||||
Consideration (including VAT) | ₽ 7,247 | ||||||
Rent-Nedvizhimost | Business Nedvizhimost. | |||||||
RELATED PARTIES | |||||||
Ownership interest sold (as a percent) | 100.00% | ||||||
Proceeds from sale of ownership interest | ₽ 8,500 | ||||||
Yahont | |||||||
RELATED PARTIES | |||||||
Purchase of telecommunication equipment, software and billing systems | ₽ 7,181 | ₽ 2,261 |
STOCK-BASED COMPENSATIONS - Sha
STOCK-BASED COMPENSATIONS - Share based awards displayed (Details) EquityInstruments in Thousands | 12 Months Ended | |
Dec. 31, 2021EquityInstruments₽ / shares | Dec. 31, 2020EquityInstruments₽ / shares | |
Equity-settled Share Based Awards | ||
Share based compensation | ||
Outstanding at the beginning of the period | EquityInstruments | 3,194 | 3,907 |
Granted during the period | EquityInstruments | 18,733 | 1,818 |
Forfeited during the period | EquityInstruments | (447) | (373) |
Exercised during the period | EquityInstruments | (814) | (2,158) |
Outstanding at the end of the period | EquityInstruments | 20,666 | 3,194 |
Exercisable at the end of the period | EquityInstruments | 6,246 | 1,494 |
Weighted average fair value per share beginning of the period | ₽ 424 | ₽ 444 |
Granted during the period | 249 | 415 |
Forfeited during the period | 407 | 391 |
Exercised during the period | 406 | 443 |
Weighted average fair value per share end of the period | 327 | 424 |
Exercisable at the end of the period | 361 | 408 |
Weighted-average exercise price | ₽ 375 | ₽ 487 |
Cash-settled Share Based Awards | ||
Share based compensation | ||
Outstanding at the beginning of the period | EquityInstruments | 725 | 2,466 |
Granted during the period | EquityInstruments | 3,788 | 510 |
Forfeited during the period | EquityInstruments | (298) | (241) |
Exercised during the period | EquityInstruments | (729) | (2,011) |
Outstanding at the end of the period | EquityInstruments | 3,485 | 725 |
Exercisable at the end of the period | EquityInstruments | 1,598 | 725 |
Weighted average fair value per share beginning of the period | ₽ 707 | ₽ 857 |
Granted during the period | 423 | 782 |
Forfeited during the period | 678 | 782 |
Exercised during the period | 707 | 812 |
Weighted average fair value per share end of the period | 402 | 707 |
Exercisable at the end of the period | ₽ 638 | ₽ 707 |
STOCK-BASED COMPENSATIONS - Ran
STOCK-BASED COMPENSATIONS - Range of exercise prices and the weighted-average remaining contractual terms (Details) EquityInstruments in Thousands | 12 Months Ended | ||
Dec. 31, 2021EquityInstruments₽ / shares | Dec. 31, 2020EquityInstruments₽ / shares | Dec. 31, 2019EquityInstruments | |
Equity-settled Share Based Awards | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Number of share options outstanding in share-based payment arrangement | EquityInstruments | 20,666 | 3,194 | 3,907 |
Weighted average share price | ₽ 375 | ₽ 487 | |
Equity-settled Share Based Awards | Options To Be Exercised in 2022 | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Number of share options outstanding in share-based payment arrangement | EquityInstruments | 5,689 | ||
Weighted average remaining contractual term | 3 months | ||
Equity-settled Share Based Awards | Options To Be Exercised in 2023 | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Number of share options outstanding in share-based payment arrangement | EquityInstruments | 6,241 | ||
Weighted average remaining contractual term | 15 months | ||
Equity-settled Share Based Awards | Options To Be Exercised in 2024 | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Number of share options outstanding in share-based payment arrangement | EquityInstruments | 8,736 | ||
Weighted average remaining contractual term | 27 months | ||
Cash-settled Share Based Awards | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Number of share options outstanding in share-based payment arrangement | EquityInstruments | 3,485 | 725 | 2,466 |
Cash-settled Share Based Awards | Options To Be Exercised in 2022 | Ordinary Share | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Number of share options outstanding in share-based payment arrangement | EquityInstruments | 629 | ||
Weighted average share price | ₽ 153 | ||
Weighted average remaining contractual term | 3 months | ||
Cash-settled Share Based Awards | Options To Be Exercised in 2022 | ADS | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Number of share options outstanding in share-based payment arrangement | EquityInstruments | 969 | ||
Weighted average share price | ₽ 953 | ||
Weighted average remaining contractual term | 3 months | ||
Cash-settled Share Based Awards | Options To Be Exercised in 2023 | Ordinary Share | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Number of share options outstanding in share-based payment arrangement | EquityInstruments | 629 | ||
Weighted average remaining contractual term | 15 months | ||
Cash-settled Share Based Awards | Options To Be Exercised in 2024 | Ordinary Share | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Number of share options outstanding in share-based payment arrangement | EquityInstruments | 1,258 | ||
Weighted average remaining contractual term | 27 months | ||
Minimum | Equity-settled Share Based Awards | Options To Be Exercised in 2022 | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Weighted average share price | ₽ 153 | ||
Minimum | Equity-settled Share Based Awards | Options To Be Exercised in 2023 | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Weighted average share price | 136 | ||
Minimum | Equity-settled Share Based Awards | Options To Be Exercised in 2024 | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Weighted average share price | 121 | ||
Minimum | Cash-settled Share Based Awards | Options To Be Exercised in 2023 | Ordinary Share | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Weighted average share price | 136 | ||
Minimum | Cash-settled Share Based Awards | Options To Be Exercised in 2024 | Ordinary Share | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Weighted average share price | 121 | ||
Maximum | Equity-settled Share Based Awards | Options To Be Exercised in 2022 | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Weighted average share price | 599 | ||
Maximum | Equity-settled Share Based Awards | Options To Be Exercised in 2023 | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Weighted average share price | 545 | ||
Maximum | Equity-settled Share Based Awards | Options To Be Exercised in 2024 | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Weighted average share price | 846 | ||
Maximum | Cash-settled Share Based Awards | Options To Be Exercised in 2023 | Ordinary Share | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Weighted average share price | 273 | ||
Maximum | Cash-settled Share Based Awards | Options To Be Exercised in 2024 | Ordinary Share | |||
Range of exercise prices and the weighted-average remaining contractual terms | |||
Weighted average share price | ₽ 605 |
STOCK-BASED COMPENSATIONS - Add
STOCK-BASED COMPENSATIONS - Additional Information (Details) - RUB (₽) ₽ / shares in Units, ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share based compensation | ||||
Change in fair value of incremental share based compensation per share | ₽ 49 | ₽ 68 | ₽ 145 | |
Total expense in respect of Group's share plans | ₽ 4,767 | ₽ 2,176 | ||
Liability from share based payment awards | 2,285 | 962 | ||
Fair value of share-based awards vested | 1,530 | 896 | ||
Equity-settled Share Based Awards | ||||
Share based compensation | ||||
Total expense in respect of Group's share plans | ₽ 3,690 | ₽ 819 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - RUB (₽) ₽ / shares in Units, ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shareholders' equity | ||||
Number of shares repurchased | 65,308,610 | 48,797,719 | 61,519,084 | |
Maximum stock repurchase amount | ₽ 21,484 | ₽ 16,010 | ₽ 15,922 | |
Common stock | ||||
Shareholders' equity | ||||
Ordinary shares authorized | 1,998,381,575 | 1,998,381,575 | 1,998,381,575 | 1,998,381,575 |
Par value (in RUB per share) | ₽ 0.1 | ₽ 0.1 | ||
Number of shares repurchased | 42,512,570 | 26,038,847 | 32,589,740 | |
Maximum stock repurchase amount | ₽ 13,981 | ₽ 8,525 | ₽ 8,472 | |
Common stock | Sistema Finance | ||||
Shareholders' equity | ||||
Number of shares repurchased | 22,796,040 | 22,758,872 | 28,929,344 | |
Maximum stock repurchase amount | ₽ 7,503 | ₽ 7,485 | ₽ 7,450 | |
Treasury stock | ||||
Shareholders' equity | ||||
Treasury stock shares | 335,757,457 | 271,479,406 | 225,547,422 | 167,638,899 |
Number of shares outstanding | 1,662,624,118 | 1,726,902,169 |
SHAREHOLDERS' EQUITY - Non-cont
SHAREHOLDERS' EQUITY - Non-controlling interests (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-controlling interests | |||
Non-controlling interests opening balance | ₽ (3,990) | ||
Dividends to non-controlling interests | 52 | ₽ 52 | ₽ 1,123 |
Non-controlling interests closing balance | (4,838) | (3,990) | |
Statement of financial position | |||
Current assets | 263,300 | 262,354 | |
Non-current assets | 752,518 | 656,849 | |
Current liabilities | (473,420) | (328,614) | |
Non-current liabilities | (527,794) | (557,899) | |
Income statement | |||
Revenue, gross of intercompany | (534,403) | (494,926) | (470,605) |
Profit for the year, gross of intercompany | (64,269) | (62,073) | (55,099) |
Non-controlling interests | |||
Non-controlling interests | |||
Dividends to non-controlling interests | 52 | 52 | 1,123 |
Income statement | |||
Profit for the year, gross of intercompany | ₽ (796) | ₽ (661) | ₽ (858) |
SHAREHOLDERS' EQUITY - Dividend
SHAREHOLDERS' EQUITY - Dividends (Details) - RUB (₽) ₽ / shares in Units, ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Declared cash dividends | |||
Dividends declared (including dividends on treasury shares of 12,082, 6,936 and 9,449 respectively) | ₽ 74,049 | ₽ 58,948 | ₽ 83,751 |
Dividends declared on treasury shares | ₽ 12,082 | ₽ 6,936 | ₽ 9,449 |
Dividends, RUB per ADS | ₽ 74.12 | ₽ 59 | ₽ 83.82 |
Dividends, RUB per share | ₽ 37.06 | ₽ 29.50 | 41.91 |
Dividends payable | ₽ 68 | ₽ 108 | |
Minimum | |||
Dividends | |||
Minimum cumulative dividend payout for ordinary share | ₽ 28 | ₽ 28 | ₽ 28 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Capital commitments (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Property, plant and equipment | ||
Capital commitments | ||
Capital commitment to acquire property, plant and equipment, intangible assets and costs | ₽ 67,614 | ₽ 62,616 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Taxation (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Additional taxes other than income tax contingent liability | ||
Taxation | ||
Estimated financial effect of contingent liabilities | ₽ 860 | ₽ 1,043 |
Additional income tax contingent liability | ||
Taxation | ||
Estimated financial effect of contingent liabilities | ₽ 1,132 | ₽ 892 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Others (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Aug. 21, 2021 | |
COMMITMENTS AND CONTINGENCIES | ||
Percentage of increase in key rates | 20.00% | |
Penalty paid imposed by FAS Russia | ₽ 189 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Feb. 28, 2022 |
Vision Labs | |
Subsequent events | |
Percentage of voting equity interests acquired | 100.00% |