Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information | |
Entity Registrant Name | QIWI plc |
Entity Central Index Key | 0001561566 |
Entity Filer Category | Accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Amendment Flag | false |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Interactive Data Current | Yes |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
ICFR Auditor Attestation Flag | true |
Ordinary Class A shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 10,413,522 |
Ordinary Class B shares | |
Document Information | |
Entity Common Stock, Shares Outstanding | 52,299,453 |
Consolidated statement of finan
Consolidated statement of financial position - RUB (₽) ₽ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Non-current assets | ||
Property and equipment | ₽ 1,893 | ₽ 2,346 |
Goodwill and other intangible assets | 10,813 | 11,316 |
Investments in associates | 1,635 | 1,118 |
Long-term debt securities and deposits | 3,495 | 4,015 |
Long-term loans | 214 | 265 |
Other non-current assets | 112 | 83 |
Deferred tax assets | 209 | 217 |
Total non-current assets | 18,371 | 19,360 |
Current assets | ||
Trade and other receivables | 7,445 | 6,162 |
Short-term loans | 5,799 | 11,419 |
Short-term debt securities and deposits | 2,888 | 1,136 |
Prepaid income tax | 197 | 259 |
Other current assets | 1,202 | 917 |
Cash and cash equivalents | 47,382 | 42,101 |
Assets held for sale | 31 | 123 |
Total current assets | 64,944 | 62,117 |
Total assets | 83,315 | 81,477 |
Equity attributable to equity holders of the parent | ||
Share capital | 1 | 1 |
Additional paid-in capital | 1,876 | 1,876 |
Share premium | 12,068 | 12,068 |
Other reserve | 2,575 | 2,576 |
Retained earnings | 14,602 | 10,557 |
Translation reserve | 554 | 289 |
Total equity attributable to equity holders of the parent | 31,676 | 27,367 |
Non-controlling interests | 96 | 70 |
Total equity | 31,772 | 27,437 |
Non-current liabilities | ||
Long-term debt | 4,923 | 1,545 |
Long-term lease liabilities | 762 | 1,017 |
Long-term customer accounts | 36 | 444 |
Other non-current liabilities | 44 | 45 |
Deferred tax liabilities | 1,161 | 749 |
Total non-current liabilities | 6,926 | 3,800 |
Current liabilities | ||
Trade and other payables | 29,528 | 27,295 |
Customer accounts and amounts due to banks | 12,301 | 21,519 |
Short-term debt | 1,640 | |
Short-term lease liabilities | 354 | 340 |
VAT and other taxes payable | 147 | 184 |
Other current liabilities | 647 | 902 |
Total current liabilities | 44,617 | 50,240 |
Total equity and liabilities | ₽ 83,315 | ₽ 81,477 |
Consolidated statement of compr
Consolidated statement of comprehensive income - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated statement of comprehensive income | |||
Revenue: | ₽ 40,622 | ₽ 35,941 | ₽ 29,593 |
Payment processing fees | 34,326 | 30,736 | 23,694 |
Interest revenue calculated using the effective interest rate | 2,390 | 1,961 | 1,255 |
Fees from inactive accounts and unclaimed payments | 1,952 | 1,806 | 1,419 |
Other revenue | 1,954 | 1,438 | 3,225 |
Operating costs and expenses: | (26,558) | (23,964) | (20,714) |
Cost of revenue (exclusive of items shown separately below) | (16,494) | (14,075) | (10,332) |
Selling, general and administrative expenses | (2,733) | (3,442) | (3,833) |
Personnel expenses | (6,108) | (5,192) | (5,758) |
Depreciation and amortization | (1,101) | (1,066) | (772) |
Credit loss (expense)/income | (90) | 12 | 4 |
Impairment of non-current assets | (32) | (201) | (23) |
Profit (loss) from operations | 14,064 | 11,977 | 8,879 |
Share of gain/(loss) of an associate and a joint venture | 663 | 258 | (46) |
Other income and expenses, net | (95) | (91) | (181) |
Foreign exchange gain/(loss), net | (199) | (172) | 263 |
Interest income and expenses, net | (68) | (18) | 17 |
Profit before tax from continuing operations | 14,365 | 11,954 | 8,932 |
Income tax expense | (3,119) | (2,513) | (1,751) |
Net profit from continuing operations | 11,246 | 9,441 | 7,181 |
Discontinued operations | |||
Loss after tax from discontinued operations | (2,308) | (4,554) | (3,555) |
Net profit | 8,938 | 4,887 | 3,626 |
Attributable to: | |||
Equity holders of the parent | 8,842 | 4,832 | 3,584 |
Non-controlling interests | 96 | 55 | 42 |
Foreign currency translation: | |||
Exchange differences on translation of foreign operations | 229 | (229) | 525 |
Net loss recycled to profit or loss upon disposal | 45 | ||
Debt securities at fair value through other comprehensive income (FVOCI): | |||
Net gains arising during the period, net of tax | 32 | 41 | |
Net gains recycled to profit or loss upon disposal | (47) | (26) | |
Total other comprehensive income/(loss), net of tax | 259 | (214) | 525 |
Total comprehensive income | 9,197 | 4,673 | 4,151 |
Attributable to: | |||
Equity holders of the parent | 9,092 | 4,623 | 4,099 |
Non-controlling interests | ₽ 105 | ₽ 50 | ₽ 52 |
Earnings per share: | |||
Basic, profit attributable to ordinary equity holders of the parent | ₽ 142.04 | ₽ 78.20 | ₽ 58.56 |
Diluted, profit attributable to ordinary equity holders of the parent | 141.66 | 77.60 | 58.06 |
Earnings per share for continuing operations | |||
Basic, profit from continuing operations attributable to ordinary equity holders of the parent | 179.11 | 151.91 | 116.65 |
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent | ₽ 178.64 | ₽ 150.74 | ₽ 115.66 |
Consolidated statement of cash
Consolidated statement of cash flows - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||
Profit before tax from continuing operations | ₽ 14,365 | ₽ 11,954 | ₽ 8,932 |
Loss before tax from discontinued operations | (2,509) | (5,575) | (4,431) |
Profit before tax | 11,856 | 6,379 | 4,501 |
Adjustments to reconcile profit before tax to net cash flows generated from operating activities | |||
Depreciation and amortization | 1,266 | 1,324 | 864 |
Foreign exchange (gain)/loss, net | 224 | 172 | (262) |
Interest income, net | (2,693) | (2,901) | (1,782) |
Credit loss expense | 870 | 642 | 474 |
Share of (gain) / loss of an associate and a joint venture | (663) | (258) | 46 |
Loss from sale of Sovest loans' portfolio | 712 | ||
Share-based payments | 43 | 464 | 635 |
Impairment of non-current assets | 134 | 792 | 23 |
Loss from initial recognition | 27 | 273 | 143 |
Other | 1 | 122 | 371 |
(Increase)/decrease in trade and other receivables | (854) | 1,256 | 1,127 |
(Increase)/decrease in other assets | (308) | 39 | (529) |
Increase/(decrease) in customer accounts and amounts due to banks | (10,240) | 3,528 | 14,601 |
Increase in accounts payable and accruals | 1,242 | 976 | 7,347 |
Increase/(decrease) in loans issued from banking operations | 4,023 | (5,159) | (5,827) |
Cash flows generated from operations | 5,640 | 7,649 | 21,732 |
Interest received | 3,391 | 3,694 | 1,795 |
Interest paid | (508) | (333) | (113) |
Income tax paid | (2,421) | (1,771) | (769) |
Net cash flow generated from operating activities | 6,102 | 9,239 | 22,645 |
Investing activities | |||
Cash paid as investments in associates and joint ventures | (200) | (21) | |
Cash received upon /(used in) business combination | (141) | (354) | 138 |
Purchase of property and equipment | (260) | (858) | (736) |
Purchase of intangible assets | (176) | (443) | (385) |
Proceeds from sale of fixed and intangible assets | 124 | 196 | |
Loans issued | (16) | (444) | (187) |
Repayment of loans issued | 51 | 412 | 4 |
Purchase of debt securities and deposits | (4,444) | (5,405) | (810) |
Proceeds from sale and redemption of debt securities | 3,230 | 2,213 | 672 |
Dividend received from an associate | 153 | ||
Net cash used in investing activities | (1,479) | (4,883) | (1,325) |
Financing activities | |||
Proceeds from borrowings | 4,921 | 1,545 | |
Payment of principal portion of lease liabilities | (301) | (387) | |
Dividends paid to owners of the Group | (4,804) | (3,392) | |
Dividends paid to non-controlling shareholders | (74) | (43) | (29) |
Other | (29) | ||
Net cash used in financing activities | (287) | (2,277) | (29) |
Effect of exchange rate changes on cash and cash equivalents | 945 | (944) | 1,240 |
Net increase in cash and cash equivalents | 5,281 | 1,135 | 22,531 |
Cash and cash equivalents at the beginning of year | 42,101 | 40,966 | 18,435 |
Cash and cash equivalents at the end of year | ₽ 47,382 | ₽ 42,101 | ₽ 40,966 |
Consolidated statement of chang
Consolidated statement of changes in equity - RUB (₽) ₽ in Millions | Share capital | Additional paid-in capital | Share premium | Other reserves | Retained earnings | Translation reserve | Total | Non-controlling interests | Total |
Beginning balance, equity at Dec. 31, 2017 | ₽ 1 | ₽ 1,876 | ₽ 12,068 | ₽ 1,462 | ₽ 5,715 | ₽ (2) | ₽ 21,120 | ₽ 37 | ₽ 21,157 |
Beginning balance, shares outstanding at Dec. 31, 2017 | 60,932,654 | ||||||||
Impact of adopting IFRS 9 at Dec. 31, 2017 | (208) | (208) | (208) | ||||||
Beginning balance adjusted for impact of IFRS 9 at Dec. 31, 2017 | ₽ 1 | 1,876 | 12,068 | 1,462 | 5,507 | (2) | 20,912 | 37 | 20,949 |
Profit for the period | 3,584 | 3,584 | 42 | 3,626 | |||||
Foreign currency translation | 515 | 515 | 10 | 525 | |||||
Total comprehensive income | 3,584 | 515 | 4,099 | 52 | 4,151 | ||||
Share-based payments | 635 | 635 | 635 | ||||||
Exercise of options | 518,859 | ||||||||
Dividends to non-controlling interests | (29) | (29) | |||||||
Ending balance, equity at Dec. 31, 2018 | ₽ 1 | 1,876 | 12,068 | 2,097 | 9,091 | 513 | 25,646 | 60 | ₽ 25,706 |
Ending balance, shares outstanding at Dec. 31, 2018 | 61,451,513 | 61,452,000 | |||||||
Profit for the period | 4,832 | 4,832 | 55 | ₽ 4,887 | |||||
Foreign currency translation | (224) | (224) | (5) | (229) | |||||
Debt instruments at FVOCI | 15 | 15 | 15 | ||||||
Total comprehensive income | 15 | 4,832 | (224) | 4,623 | 50 | 4,673 | |||
Share-based payments | 464 | 464 | ₽ 464 | ||||||
Exercise of options | 641,322 | 641,000 | |||||||
Dividends | (3,366) | (3,366) | ₽ (3,366) | ||||||
Dividends to non-controlling interests | (43) | (43) | |||||||
Other | 3 | 3 | |||||||
Ending balance, equity at Dec. 31, 2019 | ₽ 1 | 1,876 | 12,068 | 2,576 | 10,557 | 289 | 27,367 | 70 | ₽ 27,437 |
Ending balance, shares outstanding at Dec. 31, 2019 | 62,092,835 | 62,093,000 | |||||||
Profit for the period | 8,842 | 8,842 | 96 | ₽ 8,938 | |||||
Foreign currency translation | 265 | 265 | 9 | 274 | |||||
Debt instruments at FVOCI | (15) | (15) | (15) | ||||||
Total comprehensive income | (15) | 8,842 | 265 | 9,092 | 105 | 9,197 | |||
Share-based payments | 43 | 43 | ₽ 43 | ||||||
Exercise of options | 285,997 | 286,000 | |||||||
Dividends | (4,797) | (4,797) | ₽ (4,797) | ||||||
Dividends to non-controlling interests | (74) | (74) | |||||||
Other | (29) | (29) | (5) | (34) | |||||
Ending balance, equity at Dec. 31, 2020 | ₽ 1 | ₽ 1,876 | ₽ 12,068 | ₽ 2,575 | ₽ 14,602 | ₽ 554 | ₽ 31,676 | ₽ 96 | ₽ 31,772 |
Ending balance, shares outstanding at Dec. 31, 2020 | 62,378,832 | 62,379,000 |
Corporate Information and descr
Corporate Information and description of business | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information and description of business | |
Corporate Information and description of business | 1. QIWI plc (hereinafter “the Company”) was registered on February 26, 2007 as a limited liability Company OE Investment in Cyprus under the Cyprus Companies Law, Cap. 113. The registered office of the Company is Kennedy 12, Kennedy Business Centre, 2nd Floor, P.C.1087, Nicosia, Cyprus. On September 13, 2010 the directors of the Company resolved to change the name of the Company from OE Investments Limited to QIWI Limited. On February 25, 2013 the directors of the Company resolved to change the legal form of the Company from QIWI Limited to QIWI plc. The consolidated financial statements of QIWI plc and its subsidiaries for the year ended December 31, 2020 were authorized for issue by Board of Directors (BoD) on March 17, 2021. QIWI plc and its subsidiaries (collectively the “Group”) operate electronic online payment systems primarily in Russia, Kazakhstan, Moldova, Belarus, United Arab Emirates (UAE) and other countries and provide consumer and small and medium enterprises (SME) financial services. The Company was founded as a holding company as a part of the business combination transaction in which ZAO Ob’edinennya Sistema Momentalnykh Platezhey and ZAO e-port Group of entities were brought together by way of contribution to the Company. The transaction was accounted for as a business combination in which ZAO Ob’edinennya Sistema Momentalnykh Platezhey was identified as the acquirer. The Company’s American Depositary Securities (ADS) have been listed on Nasdaq since May 3, 2013 and have been admitted to trading on MOEX since May 20, 2013. Prior to that time, there was no public market for the Company’ ADSs or ordinary shares. Subsequently, the Company closed two follow-on offerings of its ADSs on October 3, 2013 and on June 20, 2014. Sergey Solonin is the ultimate controlling shareholder of the Group as of December 31, 2020. Information on the Company’s principal subsidiaries is disclosed in Note 5. |
Principles underlying preparati
Principles underlying preparation of consolidated financial statements | 12 Months Ended |
Dec. 31, 2020 | |
Principles underlying preparation of consolidated financial statements | |
Principles underlying preparation of consolidated financial statements | 2. 2.1 The consolidated financial statements are prepared on a historical cost basis. The consolidated financial statements are presented in Russian rubles (“RUB”) and all values are rounded to the nearest million (RUB (000,000)) except when otherwise indicated. The Group’s subsidiaries maintain and prepare their accounting records and prepare their statutory accounting reports in accordance with domestic accounting legislation. Standalone financial statements of subsidiaries are prepared in their respective functional currencies (see Note 3.3 below). The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) under the historical cost convention, as modified by the initial recognition of financial instruments based on fair value, and by revaluation of financial instruments categorised at fair value through profit or loss (FVTPL) and at fair value through other comprehensive income (FVOCI). The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. Despite the risks and uncertainties the Group is facing disclosed in Note 27, the management believes that the Group will continue to operate on a going concern basis in the foreseeable future. Therefore, these consolidated financial statements are prepared accordingly. 2.2 The consolidated financial statements comprise the financial statements of QIWI plc and its subsidiaries as of December 31 each year. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: · Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee), · Exposure, or rights, to variable returns from its involvement with the investee, and · The ability to use its power over the investee to affect its returns. When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: · The contractual arrangement with the other vote holders of the investee, · Rights arising from other contractual arrangements, · The Group’s voting rights and potential voting rights. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group losses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the statement of comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, income, expenses and unrealized gains and losses resulting from intra-group transactions are eliminated in full, except for the foreign exchange gains and losses arising on intra-group loans. Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: · Derecognises the assets (including goodwill) and liabilities of the subsidiary. · Derecognises the carrying amount of any non-controlling interests, including any components of other comprehensive income attributable to them. · Recognises the fair value of the consideration received. · Recognises the fair value of any investment retained. · Recognises any surplus or deficit in profit or loss. · Reclassifies to profit or loss or retained earnings, as appropriate, the amounts previously recognized in OCI as would be required if the Group had directly disposed of the related assets or liabilities. 2.3 The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those followed in the preparation of the Group’s annual financial statements for the year ended December 31, 2019, except for the adoption of the new and amended IFRS and IFRIC interpretations as of January 1, 2020. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. The following amended standards and interpretations became effective from January 1, 2020, but did not have any material impact on the financial statements of the Group: - Amendments to References to the Conceptual Framework in IFRS Standards (issued on March 29, 2018). - Amendments to IAS 1 and IAS 8: Definition of Material (issued on October 31, 2018). - Amendment to IFRS 3: Definition of a Business (issued on October 22, 2018). - Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform (issued in September, 2019) - Amendments to IFRS 16: Covid-19 Related Rent Concessions (issued in May 28, 2020 and effective since June 1, 2020). 2.4 The following other new pronouncements are not expected to have any material impact on the Group when adopted: - IFRS 17 Insurance Contracts (issued in May 2017 and effective for annual periods beginning on or after January 1, 2023) - Amendments to IAS 1: Classification of liabilities as current or non-current (issued on January 23, 2020 and effective for annual periods beginning on or after January 1, 2023) - Amendments to IFRS 3: Reference to the Conceptual Framework (issued in May 2020, and effective for annual periods beginning on or after January 1, 2022) - Amendments to IAS 16: Property, Plant and Equipment: Proceeds before Intended Use (issued in May 2020, and effective for annual periods beginning on or after January 1, 2022) - Amendments to IAS 37: Onerous Contracts – Costs of Fulfilling a Contract (issued in May 2020, and effective for annual periods beginning on or after January 1, 2022) - Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest rate benchmark (IBOR) reform (issued in August 2020 and effective for annual periods beginning on or after January 1, 2021) - Amendments to IAS 1 Presentaion of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (issued in February 2021 and effective for annual periods beginning on or after January 1, 2023) - Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (issued in February 2021 and effective for annual periods beginning on or after January 1, 2023) - Amendments to IFRS 16: Covid-19 Related Rent Concessions beyond June 30, 2021 (issued in March 31, 2020 and effective since April 1, 2021). - 2018-2020 annual improvements to IFRS standards (effective for annual periods beginning on or after January 1, 2022): - IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time adopter - IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities - IAS 41 Agriculture – Taxation in fair value measurements |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 3. Set out below are the principal accounting policies used to prepare these consolidated financial statements: 3.1 Business combinations are accounted for using the acquisition method. Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Group to the previous owners of the acquiree, and equity interests issued by the Group. Consideration transferred also includes the fair value of any contingent consideration and share-based payment awards of the acquiree that are replaced mandatorily in the business combination. If a business combination results in the termination of pre-existing relationships between the Group and the acquiree, then the Group identifies any amounts that are not part of what the Group and the acquiree exchanged in the business combination. The Group recognizes as part of applying the acquisition method, only the consideration transferred for the acquiree and the assets acquired and liabilities assumed in the exchange for the acquiree. If the business combination is achieved in stages, any previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss. It is then considered in the determination of goodwill. Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequently, contingent consideration classified as an asset or liability, is measured at fair value with changes in fair value recognized in profit or loss. Contingent consideration that is classified as equity is not re-measured and subsequent settlement is accounted for within equity. The Group measures any non-controlling interest at its proportionate interest in the identifiable net assets of the acquiree. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated of the Group’s cash generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquired entity are assigned to those units. Where goodwill has been allocated to a cash-generating unit and certain operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed in this circumstance is measured based on the relative values of the operation disposed and the portion of the cash-generating unit retained. 3.2 The Group’s investment in its associate and joint ventures are accounted for using the equity method. An associate is an entity in which the Group has significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. unanimous consent of the parties) have rights to the net assets of the arrangement. Under the equity method, the investment in the associate or joint venture is carried on the statement of financial position at cost plus post acquisition changes in the Group’s share of net assets of the associate/joint venture. Goodwill relating to the associate/joint venture is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment. The statement of comprehensive income reflects the Group’s share of the results of operations of the associate/joint venture. When there has been a change recognized directly in the equity of the investment, the Group recognizes its share of any changes and discloses this, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and the associate/joint venture are eliminated to the extent of the interest in it. The Group’s share of profit of an associate/joint venture is shown on the face of the statement of comprehensive income or in the notes. This is the profit attributable to equity holders of the associate/joint venture and, therefore, is profit after tax and non-controlling interests in the subsidiaries of the associate/joint venture. The financial statements of the associates/joint ventures are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognize an additional impairment loss on its investment in its associates/joint ventures. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate/joint venture is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of an investment in associate/joint venture and its carrying value and recognizes any respective loss in the statement of comprehensive income. Upon loss of significant influence over the associate/joint venture, the Group measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate/joint venture upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss. 3.3 The consolidated financial statements are presented in Russian rubles (RUB), which is the Company’s functional and the Group’s presentation currency. Each entity in the Group determines its own functional currency, depending on what the underlying economic environment is, and items included in the financial statements of each entity are measured using that functional currency. Transactions in foreign currencies are initially recorded in the functional currency at the functional currency rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are re-measured in to the functional currency at the functional currency rate of exchange at the reporting date. All differences are taken to profit or loss. They are shown separately for each Group company but netted by major types of monetary assets and liabilities. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as of the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on retranslation of non-monetary items is treated in line with the recognition of gain or loss on change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in other comprehensive income or profit or loss is also recognized in other comprehensive income or profit or loss, respectively). The functional currency of the foreign operations is generally the respective local currency – US Dollar (U.S.$), Euro (€), Kazakhstan tenge (KZT), Belarussian ruble (BYR), Moldovan leu (MDL) and New Romanian leu (RON). As of the reporting date, the assets and liabilities of these operations are translated into the presentation currency of the Group (the Russian Ruble) at the rate of exchange at the reporting date and their statements of comprehensive income are translated at the average exchange rates for the year or exchange rates prevailing on the date of specific transactions. The exchange differences arising on the translation are recognized in other comprehensive income. On disposal of a foreign entity, the deferred cumulative amount recognized in equity relating to that particular foreign operation is reclassified to the profit or loss. The exchange rates of the Russian ruble to each respective currency as of December 31, 2020 and 2019 were as follows: Average exchange rates for Exchange rates at the year ended December 31, December 31, 2019 2020 2019 2020 US Dollar 64.7362 72.1464 61.9057 73.8757 Euro 72.5021 82.4481 69.3406 90.6824 Kazakhstan Tenge (100) 16.8972 17.4138 16.2174 17.5481 Belarussian Ruble 30.9653 29.5855 29.4257 28.6018 Moldovan Leu (10) 36.8844 41.7510 35.9917 42.9635 New Romanian Leu 15.2820 17.0333 14.4948 18.5809 The currencies listed above are not a fully convertible outside the territories of countries of their operations. Related official exchange rates are determined daily by the Central Bank of the Russian Federation (further CBR). Market rates may differ from the official rates but the differences are, generally, within narrow parameters monitored by the respective Central Banks. The translation of assets and liabilities denominated in the currencies listed above into RUB for the purposes of these financial statements does not indicate that the Group could realize or settle, in RUB, the reported values of these assets and liabilities. Likewise, it does not indicate that the Group could return or distribute the reported RUB value of capital and retained earnings to its shareholders. 3.4 3.4.1 Cost of property and equipment Property and equipment are stated at cost less accumulated depreciation and any accumulated impairment loss. Expenditures for continuing repairs and maintenance are charged to the profit or loss as incurred. 3.4.2 Depreciation and useful lives Depreciation is calculated on property and equipment on a straight-line basis from the time the assets are available for use, over their estimated useful lives as follows: Processing servers and engineering equipment 3 - 10 years Computers and office equipment 3 - 5 years Other equipment 2 - 20 years Useful lives of leasehold improvements of leased office premises are determined at the lower between the useful live of the asset or the lease term. The asset’s residual values, useful lives and depreciation methods are reviewed, and adjusted as appropriate, at each financial year-end. 3.5 3.5.1 Software and other intangible assets Software and other intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete and the asset is available for use. It is amortized over the period of expected generation of future benefits, generally 3‑5 years. During the period of development, the asset is tested for impairment annually. 3.5.2 Software development costs Development expenditure on an individual project is recognized as an intangible asset when the Group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development. 3.5.3 Useful life and amortization of intangible assets The Group assesses whether the useful life of an intangible asset is finite or indefinite and, if finite, the length of that useful life. An intangible asset is regarded by the entity as having an indefinite useful life when, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity. Intangible assets with finite lives are amortized on a straight-line basis over the useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. Below is the summary of useful lives of intangible assets: Customer relationships and contract rights 4 - 15 years Computer Software 3 - 10 years Bank license indefinite Trademarks and other intangible assets 3 - 11 years Amortization periods and methods for intangible assets with finite useful lives are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. Indefinite-lived intangible assets include the acquired licenses for banking operations. It is considered indefinite-lived as the related license is expected to be renewed indefinitely. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of comprehensive income when the asset is derecognized. 3.6 The Group assesses at each reporting date whether there is an indication that an asset, other than goodwill and intangible assets with indefinite useful life, may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their 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 asset. In determining fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded analogues, if applicable, or other available fair value indicators. The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Group’s cash generating units (CGU), to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years or longer, when management considers appropriate. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the last year. Impairment losses of continuing operations are recognized in profit or loss in those expense categories consistent with the function of the impaired asset. For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group makes an estimate of recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss. The following criteria are also applied in assessing impairment of specific assets: Goodwill Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of the cash-generating units, to which the goodwill relates. Where the recoverable amount of the cash-generating units is less than their carrying amount an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. The Group performs its annual impairment test of goodwill as of December 31 and whenever certain events and circumstances indicate that its carrying value may be impaired. Intangible assets with indefinite useful life Intangible assets with indefinite useful life are tested for impairment annually as of December 31, either individually or at the cash generating unit level, as appropriate and whenever events and circumstances indicate that an asset may be impaired. 3.7 3.7.1 Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15. In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. 3.7.2 Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: - Financial assets at amortised cost - Financial assets at fair value through OCI with recycling of cumulative gains and losses - Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition - Financial assets at fair value through profit or loss Financial assets at amortised cost This category is the most relevant to the Group. The Group measures financial assets at amortised cost if both of the following conditions are met: - The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows, And - The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Group’s financial assets at amortised cost includes cash and cash equivalents, reserves at CBR, debt instruments, trade and other receivables and loans issued. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the profit or loss section of statement of comprehensive income. The Group’s financial assets at fair value through profit or loss includes several loans that did not pass SPPI test. Financial assets at fair value through OCI For debt securities at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss. The Group's debt securities at fair value through OCI represent investments in quoted debt securities included under long-term and short-term debt securities and deposits. 3.7.3 Impairment - credit loss allowance for ECL The Group assesses and recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. The measurement of ECL reflects: - an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes; - the time value of money; and - all reasonable and supportable information that is available without undue cost and effort at the end of each reporting period about past events, current conditions and forecasts of future economic conditions. Debt instruments measured at AC are presented in the consolidated statement of financial position net of the allowance for ECL. For loan commitments (where those components can be separated from the loan), a separate provision for ECL is recognised as other financial liabilities as part of accounts payable in the consolidated statement of financial position. For debt instruments at FVOCI, an allowance for ECL is recognised in profit or loss and it affects fair value gains or losses recognised in OCI rather than the carrying amount of those instruments. The Group applies a “three stage” model for impairment in accordance with IFRS 9, based on changes in credit quality since initial recognition: 1. A financial instrument that is not credit-impaired on initial recognition is classified in Stage 1. Financial assets in Stage 1 have their ECL measured at an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months (12 month ECL). 2. If the Group identifies a significant increase in credit risk (“SICR”) since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis (lifetime ECL). 3. If the Group determines that a financial asset is credit-impaired, the asset is transferred to Stage 3 and its ECL is measured as a lifetime ECL. For financial assets that are credit-impaired on purchase or at origination, the ECL is always measured at a lifetime ECL. Note 30 provides information about inputs, assumptions and estimation techniques used in measuring ECL, including an explanation of how the Group incorporates forward-looking information in the ECL models. 3.7.4 A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognized when: - The rights to receive cash flows from the asset have expired - The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. 3.8 3.8.1 Initial recognition and measurement All financial liabilities are recognised initially at fair value, minus, in the case of financial liability not at fair value through profit or loss, transaction costs that are directly attributable to issue of financial liability. The Group classifies all financial liabilities as subsequently measured at amortised cost (trade and other payables, debt, deposits, customer accounts and amounts due to banks), except for financial liabilities at fair value through profit or loss and financial guarantees. 3.8.2 Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. The Group has no such instruments. Debt and deposits This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the profit or loss section of statement of comprehensive income. Financial guarantees Subsequent to initial recognition, the Group’s liability under each guarantee is measured at the higher of the amount initially recognised less cumulative amortisation recognised in the income statement, and an ECL allowance. The premium received is recognised in the income statement in Commissions and other revenue on a straight line basis over the life of the guarantee. Undrawn loan commitments Undrawn loan commitments are commitments under which, over the duration of the commitment, the Group is required to provide a loan with pre-specified terms to the customer. Commitments to provide loans are initially recognised at their fair value, which is normally evidenced by the amount of fees received. At the end of each reporting period, the commitments are measured at the amount of the loss allowance determined based on the expected credit loss model. For loan commitments (where those components can be separated from the loan), a separate provision for ECL is recognised as a liability in the consolidated statement of financial position. 3.8.3 Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in profit or loss. In accordance with terms and conditions of use of e-wallet accounts and system rules, the Group charges a fee on its consumers on the balance of unused accounts after certain period of inactivity and unclaimed payments. Such fees are recorded as revenues in the period a fee is charged. 3.8.4 Offsetting financial assets and liabilities Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if: - There is a currently enforceable legal right to offset the recognized amounts; and - There is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. The right of set-off: - Must not be contingent on a future event; and Must be legally enforceable in all of the following circumstances: (i) the normal course of business; (ii) the event of default; and (iii) the event of insolvency or bankruptcy of the entity and all of the counterparties 3.9 Cash comprises cash at banks and in hand and short-term deposits with an original maturity of three months or less and are included as a component of cash and cash equivalents for the purpose of the statement of financial position and statement of cash flows. 3.10 3.10.1 Short-term employee benefits Wages and salaries paid to employees are recognized as expenses in the current year. The Group also accrues expenses for future vacation payments and short-term or long-term employee bonuses. 3.10.2 Social contributions and defined contributions to pension fund Under provisions of the Russian legislation, social contributions include defined contributions to pension and other social funds of Russia and are calculated by the Group by the application of a regressive rate (from 30% to 15% in 2020, 2019 and 2018) to the annual gross remuneration of each employee. For the year ended December 31, 2020 defined contributions to pension funds of Russia of the Group amounted to 861 (2019 – 875; 2018 – 886). 3.11 Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Group expects a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of discounting is material, provisions are determined by discounting the expected value of future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as an interest expense. Performance guarantees Performance guarantees are contracts that provide compensation if another party fails to perform a contractual obligation. Performance guarantees are initially recognized at their fair value, which is usually equal to the amount of fees received. This amount is amortised on a straight line basis over the life of the contract. Performance guarantees do not transfer credit risk. The risk under performance guarantee contrac |
Significant accounting judgment
Significant accounting judgments, estimates and assumptions | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting judgments estimates and assumptions | |
Significant accounting judgments, estimates and assumptions | 4. The preparation of consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the reporting dates and the reported amounts of revenues and expenses during the reporting periods. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods. Significant judgments Revenue recognition Revenue from inactive accounts and unclaimed payments The Group stipulates in its public offers the term during which a customer who failed to identify correctly the recipient of his transfer can return to correct the identification details or claim money back. If the customer does not return, the whole amount of transfer is appropriated by the Group in the period of specified time in the public offer. Similarly, the Group charges a daily commission on the balance of wallets that remained inactive during the period indicated in the public offer. The Group believes that including these rules into its public offers gives it appropriate legal rights to recognize the extinguishment of customer liabilities and, therefore, record the related gain as revenue. Functional currency Each entity in the Group determines its own functional currency, depending on the economic environment it operates in, and items included in the financial statements of each entity are measured using that functional currency. Recognition of control, joint control, or significant influence over entities In assessing business combinations, the Group analyses all relevant terms and conditions of management of the acquired or newly established entities and exercise judgment in deciding whether the Group has control, joint control, or significant influence over them. As a result, certain acquisitions where the Group’s share is over 50% may not be recognized as consolidated subsidiaries and vice versa. See Note 6 for details. Determining the lease term of contracts with renewal and termination options The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Group has the option, under some of its contracts to lease the assets for additional term. The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew (e.g., construction of significant leasehold improvements or significant customisation to the leased asset). The carrying amounts of the Group’s right-of-use assets and lease liabilities and the movements during the year are disclosed in Note 21. Significant estimates and assumptions Significant estimates reflected in the Company’s financial statements include, but are not limited to: - Fair values of assets and liabilities acquired in business combinations; - Fair value of assets transferred in non-monetary transactions; - Useful life of property, equipment and Intangible assets - Impairment of intangible assets, goodwill, investments in associates and joint ventures; - Recoverability of deferred tax assets; - Fair value of loans issued; - Impairment of loans and receivables; - Measurement of cost associated with share-based payments; - Uncertain position over risk assessment; Actual results could materially differ from those estimates. The key assumptions concerning the future events and other key sources of estimation uncertainty at the reporting date that have a significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Fair values of assets and liabilities acquired in business combinations The Group recognizes separately, at the acquisition date, the identifiable assets, liabilities and contingent liabilities acquired or assumed in the business combination at their fair values, which involves estimates. Such estimates are based on valuation techniques, which require considerable judgment in forecasting future cash flows and developing other assumptions. Impairment of goodwill and intangible assets The Group determines it has the following material CGUs: SOVEST, Payment services, QIWI Box, Tochka, Rocketbank and Flocktory. For the purpose of the goodwill impairment test, the Group estimates the recoverable amounts of Payment services CGU as fair value less costs of disposal on the basis of quoted prices of the Company’s ordinary shares and as value in use based on discounted cash flow models for other CGUs. See also Note 11 below for details. For the purpose of testing for impairment the Group’s intangible assets with indefinite useful lifes estimates the recoverable amounts of each asset as fair value less costs of disposal on the basis of comparative method and cost approach. For the purpose of intangible assets with definite useful life impairment, when indicators of impairment are noted, the Group estimates the recoverable amounts as the higher of value in use or fair value less costs to sell of an individual asset or the CGU to which this asset relates. Impairment of investments in associates and joint ventures The Group’s investments in significant associates and joint ventures are generally designated as separate CGUs. The recoverable amount of these CGUs is determined based on a value in use calculation using appropriate financial models. Recoverability of deferred tax assets The utilization of deferred tax assets will depend on whether it is possible to generate sufficient taxable income against which the deductible temporary differences can be utilized. Various factors are used to assess the probability of the future utilization of deferred tax assets, including past operating results, operational plans, expiration of tax losses carried forward, and tax planning strategies. Certain deferred tax assets were not recorded because the Group does not expect to realize certain of its tax loss carry forwards in the foreseeable future due to the history of losses. Further details on deferred taxes are disclosed in Note 26. Fair value of loans issued The Group measures loans issued at amortized cost using the effective interest rate (EIR) method. EIR is assumed to be equal to loan market rates which are defined on market participants statistic available to the Group. ECL measurement The Group records an allowance for ECLs for all loans and other debt financial assets not held at FVPL. The ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime expected credit loss or LTECL), unless there has been no significant increase in credit risk since origination, in which case, the allowance is based on the 12 months’ expected credit loss (12mECL). The 12mECL is the portion of LTECL that represent the ECLs that result from default events on a financial instrument that are possible within the 12 months after the reporting date. Both LTECL and 12mECL are calculated on either an individual basis or a collective basis, depending on the nature of the underlying portfolio of financial instruments. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. The shortfall is then discounted at an approximation to the asset’s original effective interest rate. The mechanics of the ECL calculations are outlined below and the key elements are as follows: - PD Probability of Default is an estimate of the likelihood of default over a given time horizon. A default may only happen at a certain time over the assessed period, if the facility has not been previously derecognised and is still in the portfolio. - EAD Exposure at Default is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after the reporting date, including repayments of principal and interest, whether scheduled by contract or otherwise, expected drawdowns on committed facilities, and accrued interest from missed payments. - LGD Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between the contractual cash flows due and those that the lender would expect to receive, including from the realisation of any collateral. It is usually expressed as a percentage of the EAD. For other financial assets (i.e., cash in banks, loans and debt instruments) and financial liabilities (i.e., financial guaranties and credit related commitments) the Group has established a policy to perform an assessment, at the end of each reporting period, of whether a financial instrument’s credit risk has increased significantly since initial recognition, by considering the change in the risk of default occurring over the remaining life of the financial instrument. In all cases, the Group considers that there has been a significant increase in credit risk when contractual payments are more than 30 days past due. The Group considers a financial asset in default when contractual payment are 90 days past due (except for particular sort of Trade and other receivables of 60 days). However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. For Trade and other receivables, the Group has applied the standard’s simplified approach and has calculated ECLs based on lifetime expected credit losses. The Group has established a provision matrix that is based on the Group’s historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. For instalment card loans and its undrawn credit commitments ELC calculation the Group used internal historical instalment card loans loss rates statistics for assessment of probabilities of default. The loss given default is an estimate of the loss arising in the case where a default occurs at a given time and is based on internal statistics. Further details on provision for impairment of loans and receivables are disclosed in Notes 12, 13. Measurement of cost associated with share-based payments Share-based payments included expenses incurred under employee stock option plans (ESOP) and restricted stock unit plan (RSU). Management estimates the fair value of stock options at the date of grant using the Black-Scholes-Merton pricing model and its restricted stock units using the Binominal model. The option pricing models were originally developed for use in estimating the fair value of traded options, which have different characteristics than the stock options granted by the Company and its subsidiaries, associates and joint ventures. The models are also sensitive to changes in the subjective assumptions, which can materially affect the fair value estimate. These subjective assumptions include the expected life of the options, expected volatility, risk-free interest rates, expected dividend yield, the fair value of the underlying shares. The amount of expense is also sensitive to the number of awards, which are expected to vest, taking into account estimated forfeitures. Below is the discussion of each of these estimates: Assumptions used for ESOP/RSU valuation Expected life The Company uses the expected term as the average between the vesting and contractual term of each plan. Expected volatility The expected volatility reflects the assumption that the historical QIWI’s share price volatility over a period similar to the life of the instrument is indicative of future trends, which may not necessarily be the actual outcome. Risk-free interest rates Risk-free interest rates are based on the implied yield currently available in the Russian Eurobonds with a remaining term approximating the expected life of the option award being valued. Expected dividend yield The Group set a dividend yield based on historical payout and best management’s expectation for dividends distribution. Fair value of the underlying shares The fair value of shares defined by reference to closing market price of the Group’s traded shares. Estimated forfeitures The forfeiture rate is based on historical data and current expectations and is not necessarily indicative of forfeiture patterns that may occur. For the assumptions used in valuation of a particular grants see Note 31 below. Uncertainty over risk assessment The Group disclosed possible and accrued probable risks in respect on currency, customs, litigations, tax and other regulatory positions. Management estimates the amount of risk based on its interpretation of the relevant legislation, in accordance with the current industry practice and in conformity with its estimation of probability, which require considerable judgment. See Note 27 for details. |
Consolidated subsidiaries
Consolidated subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Consolidated subsidiaries | |
Consolidated subsidiaries | 5. The consolidated IFRS financial statements include the assets, liabilities and financial results of the Company and its subsidiaries. The subsidiaries are listed below: Ownership interest As of As of December 31, December 31, Subsidiary Main activity 2019 2020 JSC QIWI (Russia) Operation of electronic payment kiosks % 100 % QIWI Bank JSC (Russia) Maintenance of electronic payment systems and Bank operations, inc.: money transfer, consumer and SME financial services % 100 % QIWI Payments Services Provider Ltd (UAE) Operation of on-line payments % 100 % QIWI International Payment System LLC (USA) Operation of electronic payment kiosks % 100 % Qiwi Kazakhstan LP (Kazakhstan) Operation of electronic payment kiosks % 100 % JLLC OSMP BEL (Belarus) Operation of electronic payment kiosks % 51 % QIWI-M S.R.L. (Moldova) Operation of electronic payment kiosks % 51 % QIWI ROMANIA SRL (Romania) 1 Operation of electronic payment kiosks 100 % — QIWI Management Services FZ-LLC (UAE) 2 Management services 100 % — Attenium LLC (Russia) Management services % 100 % Postomatnye Tekhnologii LLC (Russia) Logistic % 100 % Future Pay LLC (Russia) Operation of on-line payments % 100 % Qiwi Blockchain Technologies LLC (Russia) Software development % 100 % QIWI Shtrikh LLC (Russia) 2 On-line cashbox production % — Factoring PLUS LLC (ex. QIWI Processing LLC (Russia) Software development % 51 % ContactPay Solution (United Kingdom) Operation of on-line payments 100 % 100 % Rocket Universe LLC (Russia) Software development 100 % 100 % Billing Online Solutions LLC (Russia) Software development 100 % 100 % Flocktory Ltd (Cyprus) Holding company % 100 % Flocktory Spain S.L. (Spain) SaaS platform for customer lifecycle management and personalization % 100 % FreeAtLast LLC (Russia) SaaS platform for customer lifecycle management and personalization % 100 % SETTE FZ-LLC (UAE) Payment Services Provider 100 % 100 % LALIRA DMCC (UAE) Payment Services Provider 100 % 100 % QIWI Finance LLC (Russia) 3 Financing management — 100 % Associate and Joint Venture QIWI Platform LLC (Russia) 4 Software development % 60 % JSC Tochka (Russia) Digital services for banks % 40 % 1 The Entity was sold during 2020 for insignificant consideration. 2 The Entities were liquidated during 2020 3 The Entity was established during 2020 4 The Group’ share in the entity was diluted during 2020 with insignificant effect for the financial statements |
Acquisitions, disposals and dis
Acquisitions, disposals and discontinued operations | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions, disposals and discontinued operations | |
Acquisitions, disposals and discontinued operations | 6. Flocktory and Billing online In 2020 management finalized valuation and purchase price allocation for acquisitions of Flocktory and Billing online with no significant effect on goodwill and net assets of these businesses. Rocketbank wind down In March 2020, the Board of Directors decided to wind down the Rocketbank project and had finished the process by the end of third quarter 2020. Since that date the Rocketbank’s operations are considered as discontinued. Rocketbank represented the entire Group’s operating segment. Assets that remained after Rocketbank liquidation were transferred to Payment Services segment. SOVEST disposal In the second quarter of 2020 the Group made a decision to dispose its SOVEST project. In June 2020, the Group entered into the framework agreement and several related binding agreements to sell certain specific SOVEST project assets to an unrelated party. As a part of the transaction, the Group assigned the portfolio of SOVEST instalment card loans as well as transferred respective brands and domains. Since then, SOVEST was classified as a disposal group held for sale and as a discontinued operation. As a part of the transaction, the Group was to dismiss most SOVEST employees and the buyer extended job offers to certain SOVEST employees and reimbursed to the Group corresponding redundancy costs. The sale of SOVEST assets was completed in July 2020 for approximately RUB 6 billion, resulting in a pre-tax loss on disposal of 712. SOVEST project represented the entire Group’s Consumer Financial Services operating segment. The results of the discontinued operations for the years ended December 31 are presented below: Year ended December 31, 2018 Year ended December 31, 2019 Year ended December 31, 2020 Rocketbank SOVEST Total Rocketbank SOVEST Total Rocketbank SOVEST Total Revenue 180 837 1,017 1,339 2,056 3,395 1,151 1,463 2,614 Operating costs and expenses: (1,515) (3,932) (5,447) (4,790) (4,142) (8,932) (2,065) (2,290) (4,355) Cost of revenue (exclusive of items shown separately below) (443) (178) (621) (1,829) (256) (2,085) (604) (160) (764) Selling, general and administrative expenses (445) (1,821) (2,266) (1,020) (1,751) (2,771) (338) (424) (762) Personnel expenses (580) (1,410) (1,990) (1,128) (1,445) (2,573) (986) (796) (1,782) Depreciation and amortization (47) (45) (92) (214) (44) (258) (111) (54) (165) Credit loss (expense)/income — (478) (478) (8) (646) (654) 8 (788) (780) Impairment of non-current assets (Note 11) — — — (591) — (591) (34) (68) (102) Loss from operations (1,335) (3,095) (4,430) (3,451) (2,086) (5,537) (914) (827) (1,741) Loss from sale of Sovest loans’ portfolio — — — — — — — (712) (712) Foreign exchange gain and loss, net (1) — (1) — — — (25) — (25) Interest income and expenses, net — — — (36) (2) (38) (25) (6) (31) Loss before tax from discontinued operations (1,336) (3,095) (4,431) (3,487) (2,088) (5,575) (964) (1,545) (2,509) Income tax benefit 268 608 876 611 410 1,021 138 63 Net loss from discontinued operations (1,068) (2,487) (3,555) (2,876) (1,678) (4,554) (826) (1,482) (2,308) Earnings per share for discontinued operations Basic, loss from discontinued operations attributable to ordinary equity holders of the parent (58.09) (73.71) (37.07) Diluted, loss from discontinued operations attributable to ordinary equity holders of the parent (57.60) (73.14) (36.98) The net cash flows incurred by Rocketbank and SOVEST project are, as follows: Year ended December 31, 2018 Year ended December 31, 2019 Year ended December 31, 2020 Rocketbank SOVEST Total Rocketbank SOVEST Total Rocketbank SOVEST Total Operating 11,612 (6,526) 5,086 (1,372) (3,675) (5,047) (15,415) 6,466 (8,949) Investing (64) (42) (106) (1,623) (30) (1,653) 1,282 — 1,282 Financing — — — (58) — (58) (64) (20) (84) Net cash (outflow)/inflow 11,548 (6,568) 4,980 (3,053) (3,705) (6,758) (14,197) 6,446 (7,751) |
Operating segments
Operating segments | 12 Months Ended |
Dec. 31, 2020 | |
Operating segments. | |
Operating segments | 7. The Chief executive officer (CEO) of the Group is considered as the chief operating decision maker of the Group (CODM). In reviewing the operational performance of the Group and allocating resources, the CODM reviews selected items of each segment’s statement of comprehensive income. In determining that the CODM was the CEO, the Group considered their responsibilities as well as the following factors: - The CEO determines compensation of other executive officers while the Group’s board of directors approves corporate key performance indicators (KPIs) and total bonus pool for those executive officers. In case of underperformance of corporate KPIs a right to make a final decision on bonus pool distribution is left with the Board of directors (BOD); - The CEO is actively involved in the operations of the Group and regularly chairs meetings on key projects of the Group; and - The CEO regularly reviews the financial and operational reports of the Group. These reports primarily include segment net revenue, segment profit before tax and segment net profit for the Group as well as certain operational data. The financial data is presented on a combined basis for all key subsidiaries and associates representing the segment net revenue, segment profit before tax and segment net profit. The Group measures the performance of its operating segments by monitoring: segment net revenue, segment profit before tax and segment net profit. Segment net revenue is a measure of profitability defined as the segment revenues less segment direct costs. The Group does not monitor balances of assets and liabilities by segments as the CODM considers they have no impact on decision-making. The Group has identified its operating segments based on the types of products and services the Group offers. The CODM reviews segment net revenue, segment profit before tax and segment net profit separately for each of the following reportable segments: Payment Services, Consumer Financial Services and Rocketbank: - Payment Services (PS), operating segment that generates revenue through operations of the payment processing system offered to the Group’s customers through a diverse range of channels and interfaces; - Consumer Financial Services (CFS), operating segment that generates revenue through financial services rendered to individuals, presented by SOVEST installment card project; - Rocketbank (RB), operating segment that generates revenue through offering digital banking service including debit cards and deposits to retail customers. For the purpose of management reporting, expenses related to corporate back-office operations were not allocated to any operating segment and are presented separately to the CODM. Results of other operating segments and corporate expenses are included in Corporate and Other (CO) category for the purpose of segment reporting. Management reporting is different from IFRS, because it does not include certain IFRS adjustments, which are not analyzed by the CODM in assessing the operating performance of the business. The adjustments affect such major areas as share-based payments, offering expenses, foreign exchange gain/(loss) from revaluation of cash proceeds received from secondary public offering, the effect of disposal of subsidiaries and fair value adjustments, such as amortization and impairment, as well as non-recurring items that occur from time to time and are evaluated for adjustment as and when they occur. The tax effect of these adjustments is also excluded from management reporting. The segments’ statement of comprehensive income for the year ended December 31, 2020, as presented to the CODM are presented below: 2020 PS CFS RB CO Total Revenue 38,490 1,198 1,151 2,397 43,236 Segment net revenue 22,637 1,066 548 1,727 25,978 Segment profit/(loss) before tax 15,629 (997) (907) (530) 13,195 Segment net profit/(loss) 12,608 (793) (781) (730) 10,304 The segments’ statement of comprehensive income for the year ended December 31, 2019, as presented to the CODM are presented below: 2019 PS CFS RB CO Total Revenue 34,700 1,575 1,339 1,722 39,336 Segment net revenue 20,965 1,339 (490) 1,362 23,176 Segment profit/(loss) before tax 14,716 (2,484) (2,858) (1,051) 8,323 Segment net profit/(loss) 12,105 (1,981) (2,317) (1,128) 6,679 The segments’ statement of comprehensive income for the year ended December 31, 2018, as presented to the CODM are presented below: 2018 PS CFS RB CO Total Revenue 26,649 558 180 3,223 30,610 Segment net revenue 16,497 385 (263) 3,038 19,657 Segment profit/(loss) before tax 11,552 (3,281) (1,327) (1,872) 5,072 Segment net profit/(loss) 9,529 (2,618) (1,061) (1,713) 4,137 Segment net revenue, as presented to the CODM, for the years ended December 31, 2018, 2019 and 2020 is calculated by subtracting cost of revenue from revenue as presented in the table below: 2018 2019 2020 Revenue from continuing operations under IFRS 29,593 35,941 40,622 Revenue from discontinued operations under IFRS (Note 6) 1,017 3,395 2,614 Cost of revenue from continuing operations (10,332) (14,075) (16,494) Cost of revenue from discontinuing operations (Note 6) (621) (2,085) (764) Total segment net revenue, as presented to CODM 19,657 23,176 25,978 A reconciliation of segment profit before tax as presented to the CODM to IFRS consolidated profit before tax of the Group, for the years ended December 31, 2018, 2019 and 2020 is presented below: 2018 2019 2020 Consolidated profit before tax from continuing operations under IFRS 8,932 11,954 14,365 Consolidated loss before tax from discontinued operations under IFRS (Note 6) (4,431) (5,575) (2,509) Fair value adjustments recorded on business combinations and their amortization 369 479 337 Impairment of non-current assets — 792 134 Share-based payments 635 464 43 Offering expenses — 79 71 Loss from sale of Sovest loans’ portfolio — — 712 Loss on disposal of subsidiary — — 42 Foreign exchange loss/(gain) from revaluation of cash proceeds received from secondary public offering (433) 130 — Total segment profit before tax, as presented to CODM 5,072 8,323 13,195 A reconciliation of segment net profit as presented to the CODM to IFRS consolidated net profit of the Group, for the years ended December 31, 2018, 2019 and 2020 is presented below: 2018 2019 2020 Consolidated net profit from continuing operations under IFRS 7,181 9,441 11,246 Consolidated net loss from discontinued operations under IFRS (Note 6) (3,555) (4,554) (2,308) Fair value adjustments recorded on business combinations and their amortization 369 479 337 Impairment of non-current assets — 792 134 Share-based payments 635 464 43 Offering expenses — 79 71 Loss from sale of Sovest loans’ portfolio — — 712 Loss on disposal of subsidiary — — 42 Foreign exchange loss/(gain) from revaluation of cash proceeds received from secondary public offering (433) 130 – Effect from taxation of the above items (60) (152) 27 Total segment net profit, as presented to CODM 4,137 6,679 10,304 Geographic information Revenues from external customers are presented below: 2018 2019 2020 Russia 22,693 29,485 33,283 Other CIS 1,393 1,592 1,746 EU 2,353 3,291 2,748 Other 4,171 4,968 5,459 Total revenue from continuing and discontinued operations 30,610 39,336 43,236 Revenue is recognized according to merchants’ or consumers’ geographic place. The majority of the Group’s non-current assets are located in Russia. The Group had only one external customer where revenue exceeded 10% of the Group’s total revenue and amounted to 13% for the year ended December 31, 2020 (10.3% for the year ended December 31, 2019). This revenue was generated within the PS segment. The Group had no single external customer amounting to 10% or greater of the Group’s revenue for the year ended December 31, 2018. Disaggregated revenue information Disagregation of revenues from contracts with customers, including those from discontinued operations are presented below: 2020 PS CFS RB CO Total Payment processing fees 34,326 — — — 34,326 Cash and settlement service fees 80 — 814 432 1,326 Installment cards related fees — 827 — — 827 Platform and marketing services related fees 133 — 14 662 809 Fees for guarantees issued 23 — — 417 440 Other revenue 168 — 95 34 297 Total revenue from contracts with customers 34,730 827 923 1,545 38,025 2019 PS CFS RB CO Total Payment processing fees 30,736 — — — 30,736 Cash and settlement service fees 49 — 471 883 1,403 Installment cards related fees — 1,139 — — 1,139 Platform and marketing services related fees 106 — — 51 157 Fees for guarantees issued 27 — — 94 121 Other revenue 106 — 100 122 328 Total revenue from contracts with customers 31,024 1,139 571 1,150 33,884 2018 PS CFS RB CO Total Payment processing fees 23,694 — — — 23,694 Cash and settlement service fees 64 — 37 2,916 3,017 Installment cards related fees — 359 — — 359 Platform and marketing services related fees 97 3 — — 100 Fees for guarantees issued 12 — — 13 25 Other revenue 36 — 20 86 142 Total revenue from contracts with customers 23,903 362 57 3,015 27,337 |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share | |
Earnings per share | 8 . Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent adjusted for the effect of any potential share exercise by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The following reflects the income and share data used in basic and diluted earnings per share computations for the years ended December 31: 2018 2019 2020 Net profit attributable to ordinary equity holders of the parent for basic earnings 3,584 4,832 8,842 Weighted average number of ordinary shares for basic earnings per share 61,202,710 61,788,024 62,251,274 Effect of share-based payments 522,116 476,420 165,196 Weighted average number of ordinary shares for diluted earnings per share 61,724,826 62,264,444 62,416,470 Earnings per share: Basic, profit attributable to ordinary equity holders of the parent 58.56 78.20 142.04 Diluted, profit attributable to ordinary equity holders of the parent 58.06 77.60 141.66 There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements. |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property and equipment. | |
Property and equipment | 9. Processing Construction in servers and Computers and progress (CIP) and Right of use of engineering office Other Advances for Leasehold leased assets equipment equipment equipment equipment improvements (Note 21) Total Cost Balance as of December 31, 2018 1,339 278 195 19 — — 1,831 Impact of adopting IFRS 16 — — — — — 936 936 Restated opening balance as of December 31, 2018 1,339 278 195 19 — 936 2,767 Transfer between groups (110) 3 (152) (9) 268 — — Additions 356 147 14 104 230 848 1,699 Additions from business combinations — — 3 — — 42 45 Disposals (75) (98) (7) (6) — (209) (395) Assets held for sale (341) — — — — — (341) Balance as of December 31, 2019 1,169 330 53 108 498 1,617 3,775 Transfer between groups 98 4 (4) (101) 3 — — Additions 167 61 — 18 14 263 Additions from business combinations — — — — — — — Disposals (33) (73) (5) — (62) (250) (423) Foreign currency translation 1 — — (2) — — (1) Balance as of December 31, 2020 1,402 322 44 23 453 1,630 3,874 Accumulated depreciation and impairment: Balance as of December 31, 2018 (532) (106) (119) — — — (757) Transfer between groups 96 — 128 — (224) — — Depreciation charge (246) (68) (34) — — (304) (652) Disposals 37 35 2 — — 39 113 Assets held for sale 218 — — — — — 218 Impairment (132) — — — (219) — (351) Balance as of December 31, 2019 (559) (139) (23) — (443) (265) (1,429) Transfer between groups — — — — — — — Depreciation charge (including discontinued operations) (221) (96) (8) — (46) (328) (699) Disposals 16 30 2 — 61 50 159 Impairment (Note 11) — — — — (12) — (12) Balance as of December 31, 2020 (764) (205) (29) — (440) (543) (1,981) Net book value As of December 31, 2018 807 172 76 19 — — 1,074 As of December 31, 2019 610 191 30 108 55 1,352 2,346 As of December 31, 2020 638 117 15 23 13 1,087 1,893 As of December 31, 2020, the gross book value of fully depreciated assets is equal to 699 (2019 - 321). |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets. | |
Intangible assets | 10. Advances for Customer Computer intangibles, CIP Cost: Goodwill relationships Licenses Software Trade marks and others Total Balance as of December 31, 2018 6,378 5,414 183 1,354 355 106 13,790 Additions — — — 236 — 211 447 Additions from business combinations 777 159 — 280 32 — 1,248 Transfer between groups — — — 36 — (36) — Disposals — — — (156) — (39) (195) Balance as of December 31, 2019 7,155 5,573 183 1,750 387 242 15,290 Additions 22 — — 120 — 56 198 Additions from business combinations — — — — — — — Transfer between groups — — — 95 — (95) — Disposals (93) (88) — (414) — (92) (687) Balance as of December 31, 2020 7,084 5,485 183 1,551 387 111 14,801 Accumulated Amortization: Balance as of December 31, 2018 — (2,107) — (660) (167) (10) (2,944) Amortization charge — (301) — (317) (44) (10) (672) Impairment (93) (67) — (148) (115) (18) (441) Disposals — — — 82 — 1 83 Balance as of December 31, 2019 (93) (2,475) — (1,043) (326) (37) (3,974) Amortization charge (including discontinued operations) — (300) — (216) (30) (21) (567) Impairment (Note 11) — — — (61) — (50) (111) Disposals 93 88 — 394 — 89 664 Balance as of December 31, 2020 — (2,687) — (926) (356) (19) (3,988) Net book value As of December 31, 2018 6,378 3,307 183 694 188 96 10,846 As of December 31, 2019 7,062 3,098 183 707 61 205 11,316 As of December 31, 2020 7,084 2,798 183 625 31 92 10,813 As of December 31, 2020, the gross book value of fully amortized intangible assets is equal to 787 (2019 - 450). |
Impairment testing of goodwill
Impairment testing of goodwill and intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Impairment testing of goodwill and intangible assets | |
Impairment testing of goodwill and intangible assets | 11. The Group identified the following significant CGU’s: Payment Services, SOVEST, Tochka, Rocketbank , QIWI Box and Flocktory. As of December 31, 2020 the Goodwill is allocated to two of the CGUs: Payment Services and Flocktory and intangible assets with indefinite useful life relates to four CGUs: Payment Services, SOVEST, Tochka and Rocketbank. An analysis and movement of the net book value of goodwill and indefinite life licenses acquired through business combinations, as included in the intangible assets (Note 10), is as follows: Goodwill Indefinite life Payment services Rocketbank Flocktory license Total As of December 31, 2018 6,285 93 — 183 6,561 Addition 51 — 726 — 777 Impairment — (93) — — (93) As of December 31, 2019 6,336 — 726 183 7,245 Addition 22 — — — 22 As of December 31, 2020 6,358 — 726 183 7,267 The Group tests its goodwill and the intangible assets with an indefinite useful life annually. Goodwill For the purpose of goodwill impairment test of the Payment services CGU the Company estimated the recoverable amount as fair value less costs of disposal on the basis of quoted prices of the Company’s ordinary shares (Level 1). As a result of the annual impairment test the Group did not identify impairment of Goodwill allocated to Payment services CGU as of December 31, 2020, December 31, 2019 and December 31, 2018. The recoverable amount of Flocktory CGU has been determined based on a value in use calculation (Level 3) using cash flow projections from financial budgets approved by senior management covering a five-year period (2021-2025). The pre-tax discount rate adjusted to risk specific applied to cash flow projections of Flocktory CGU is 22%. The growth rate applied to discounted terminal value projection in beyond the forecast period is 3.8%. The calculation of value in use for this cash generating unit is sensitive to: - Compounded annual growth rate of the service market in which the unit operates; - Terminal growth rates used to extrapolate cash flows beyond the budget period; - Discount rates. With regard to the assessment of recoverable amounts of Flocktory CGU, management believes that no reasonably possible change in any of key assumptions would cause the carrying value of the unit to materially exceed its recoverable amount. As a result of annual impairment test the Group did not identify any impairment of Goodwill allocated to Flocktory CGU as of December 31, 2020. During the year 2019, goodwill allocated to Rocketbank CGU was impaired in the amount of 93. For the year ended December 31, 2018, the Group did not recognize any impairment of Goodwill. Intangible assets with indefinite useful life As of December 31, 2020, the carrying amount of intangible assets with an indefinite useful life (licenses for banking operations, which are expected to be renewed indefinitely) is recognized with a value of 183 (2019 - 183). Intangible assets with an indefinite useful life were recorded by the Group at the date of acquisition of QIWI Bank JSC. For the purpose of the impairment test of the intangible assets with indefinite useful life, the Company estimated the recoverable amounts of the asset as fair value less costs of disposal on the basis of comparative method and cost approach (Level 2). Under the valuation using the comparative method the Group considered identical third-party’s transactions for acquisition of banks or bank organization that holds licenses identical to the Group’s ones. Under the valuation using the cost approach the Group considered outflows required to meet the requirements for a minimum amount of equity to be held by the bank or bank organization with licenses similar to the Group’s according to current legislation. The key assumption used in fair value less cost of disposal calculations is expected outflows to acquire a license on the open market. All the assumptions are determined using observable market data and publicly available information of the cash transactions of the third-parties. The Group performed an annual impairment test of Qiwi Bank’s license as of December 31, 2020, December 31, 2019 and as of December 31, 2018, no impairment was identified. Reasonably possible changes in any valuation parameters would not result in impairment of intangible assets with indefinite useful life. Intangible assets with definite useful life For the purpose of the impairment test on other intangible assets the Company estimated the recoverable amounts as the higher of value in use or fair value less costs to sell of an individual asset or CGU the asset relates. During the year 2020, immediately before the classification of SOVEST as discontinued operations, the recoverable amount was estimated for certain items of Intangible assets and impairment loss was identified and recognised in the amount of 68 to reduce the carrying amount of the assets in the disposal group to their fair values less cost to sell. This impairment of non-current assets was recognised in discontinued operations in the statement of profit or loss. Management decisions to wind down other venture projects in 2020 resulted in additional recognition of impairment of non-current assets in the amount of 55. For the year ended December 31, 2019, the Group recognised the impairment regarding the non-current assets in the amount of 201 for QIWI Box CGU and 498 for Rocketbank CGU. For the year ended December 31, 2018, the Group did not recognize any significant impairment of non-current assets. |
Long-term and short-term loans
Long-term and short-term loans issued | 12 Months Ended |
Dec. 31, 2020 | |
Long-term and short-term loans issued | |
Long-term and short-term loans issued | 12. As of December 31, 2020, long-term and short-term loans issued consisted of the following: Total as of Expected Net as of December 31, credit loss December 31, 2020 allowance 2020 Long-term loans Loans to legal entities 214 — 214 Total long-term loans 214 — 214 Short-term loans Loans to legal entities 5,836 (37) 5,799 Total short-term loans 5,836 (37) 5,799 The Group’s loans mainly issued in Russian rubles. As of December 31, 2019, long-term and short-term loans consisted of the following: Total as of Expected credit Net as of December 31, loss December 31, 2019 allowance 2019 Long-term loans Loans to legal entities 265 — 265 Total long-term loans 265 — 265 Short-term loans Loans to legal entities 3,467 (33) 3,434 Instalment Card Loans 8,795 (810) 7,985 Total short-term loans 12,262 (843) 11,419 The amounts in the tables show the maximum exposure to credit risk regarding loans issued. The Group has no internal grading system of loans issued for credit risk rating grades analysis. Loans issued are not collateralized. An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the year ended December 31, 2020, was the following: Stage 1 Stage 2 Stage 3 Total Collective Collective ECL allowance as of January 1, 2020 (229) (120) (494) (843) Changes because of financial instruments (originated or acquired)/derecognized during the reporting period (128) (211) (498) (837) Transfers between stages 140 (8) (132) — Amounts sold and written off 212 338 1,093 1,643 ECL allowance as of December 31, 2020 (5) (1) (31) (37) An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the year ended December 31, 2019, was the following: Stage 1 Stage 2 Stage 3 Total Collective Collective ECL allowance as of January 1, 2019 (216) (120) (517) (853) Changes because of financial instruments (originated or acquired)/derecognized during the reporting period (127) 7 (496) (616) Transfers between stages 114 (7) (107) — Amounts sold and written off — — 626 626 ECL allowance as of December 31, 2019 (229) (120) (494) (843) During the year ended December 31, 2019, the Group sold defaulted balances of Installment Card Loans with the gross carrying amount of 655 to an unrelated party. An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the year ended December 31, 2018, was the following: Stage 1 Stage 2 Stage 3 Total Collective Collective ECL allowance as of January 1, 2018 (175) (60) (194) (429) Changes because of financial instruments (originated or acquired)/derecognized during the reporting period (146) (44) (309) (499) Transfers between stages 105 (16) (89) — Amounts sold and written off — — 75 75 ECL allowance as of December 31, 2018 (216) (120) (517) (853) |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other receivables | |
Trade and other receivables | 13. As of December 31, 2020, trade and other receivables consisted of the following: Total as of Expected credit loss Net as of December 31, allowance/ Provision for December 31, 2020 impairment 2020 Cash receivable from agents 2,358 (150) 2,208 Deposits issued to merchants 4,639 (17) 4,622 Commissions receivable 135 (19) 116 Other receivables 343 (97) 246 Total financial assets 7,475 (283) 7,192 Advances issued 254 (1) 253 Total trade and other receivables 7,729 (284) 7,445 As of December 31, 2019, trade and other receivables consisted of the following: Total as of Expected credit loss Net as of December 31, allowance/ Provision December 31, 2019 for impairment 2019 Cash receivable from agents 2,947 (199) 2,748 Deposits issued to merchants 2,690 (12) 2,678 Commissions receivable 158 (21) 137 Other receivables 276 (56) 220 Total financial assets 6,071 (288) 5,783 Advances issued 380 (1) 379 Total trade and other receivables 6,451 (289) 6,162 The amounts in the tables show the maximum exposure to credit risk regarding Trade and other receivables. The Group has no internal grading system of Trade and other receivables for credit risk rating grades analysis. An analysis of the changes in the ECL allowances due to changes in the corresponding gross carrying amounts for the years ended December 31 was the following: 2018 2019 2020 ECL allowance as of January 1, (578) (366) (289) Changes because of financial instruments (originated or acquired)/ derecognized during the reporting period 5 (9) (57) Amounts written off 207 86 62 ECL allowance as of December 31, (366) (289) (284) Receivables are non-interest bearing, except for agent receivables bearing, generally, interest rate of 20%‑36% per annum and credit terms generally do not exceed 30 days. There is no requirement for collateral for customers to receive an overdraft. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents | |
Cash and cash equivalents | 14. As of December 31, 2020 and 2019, cash and cash equivalents consisted of the following: As of As of December 31, December 31, 2019 2020 Correspondent accounts with Central Bank of Russia (CBR) 3,261 3,467 Сash with banks and on hand 7,317 9,089 Short-term CBR deposits 30,500 32,800 Other short-term bank deposits 1,025 2,028 Less: Allowance for ECL (2) (2) Total cash and cash equivalents 42,101 47,382 The amounts in the table show the maximum exposure to credit risk regarding cash and cash equivalents. While the Group has no internal grading system of cash and cash equivalents for credit risk rating grades analysis all its cash is held in highly rated banks and financial institutions according to the external rating agencies. These banks have low credit risk and are approved by the Board of Directors of the Group on a regular basis. The Group holds cash and cash equivalents in different currencies and therefore is exposed to foreign currency risk. For more details regarding foreign currency sensitivity and risk management refer to Note 29. As of As of December 31, 2019 December 31, 2020 Russian ruble 36,594 40,040 Euro 2,021 3,407 US Dollar 2,618 2,847 Others 868 1,088 Total 42,101 47,382 Since 2017 the Company has a bank guarantee and secured it by a cash deposit of U.S.$ 2.5 mln until July 31, 2021. |
Other current assets and other
Other current assets and other current liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Other current assets and other current liabilities | |
Other current assets and other current liabilities | 15. 15.1 As of December 31, 2020 and 2019, other current assets consisted of the following: As of As of December 31, December 31, 2019 2020 Reserves at CBR* 611 736 Total other financial assets 611 736 Prepaid expenses 230 259 Other 76 207 Total other current assets 917 1,202 * Banks are currently required to post mandatory reserves with the CBR to be held in non-interest bearing accounts. Starting from July 1, 2019, such mandatory reserves established by the CBR constitute 4.75% for liabilities in RUR and 8% for liabilities in foreign currency. The amount is excluded from cash and cash equivalents for the purposes of cash flow statement and does not have a repayment date. The Group has no internal grading system of other current assets for credit risk rating grades analysis. 15.2 As of December 31, 2020 and 2019, other current liabilities consisted of the following: As of As of December 31, December 31, 2019 2020 Contract liability related to loyalty programs 607 66 Contract liability related to guarantees issued 199 521 Other 96 60 Total other current liabilities |
Share capital, additional paid-
Share capital, additional paid-in capital, share premium and other reserves | 12 Months Ended |
Dec. 31, 2020 | |
Share capital, additional paid-in capital, share premium and other reserves | |
Share capital, additional paid-in capital, share premium and other reserves | 16. The Capital of the Company is divided by two classes. Each class A share has the right to ten votes at a meeting of shareholders and each class B share has the right to one vote at a meeting of shareholders. The class A shares and the class B shares have the right to an equal share in any dividend or other distribution the Company pays and have nominal of EUR 0.0005 each. As of As of As of December 31, December 31, December 31, Authorised shares 2018 2019 2020 Thousands Thousands Thousands Ordinary Class A shares 131,333 129,583 127,914 Ordinary Class B shares 99,517 101,267 102,936 Total authorised shares 230,850 230,850 230,850 As of As of As of December 31, December 31, December 31, Issued and fully paid shares 2018 2019 2020 Thousands Thousands Thousands Ordinary Class A shares 13,833 12,083 10,414 Ordinary Class B shares 48,880 50,630 52,299 Total issued and fully paid shares 62,713 62,713 62,713 As of December 31, 2020 the Company owned 334 thousand treasury class B shares (December 31, 2019 - 620) that were issued and fully paid in 2018 and retained by QIWI Employee trust in order to settle future obligations on share-based payments. For the year ended December 31, 2020 and 2019 the movement of outstanding shares' number was the following: Number Ordinary Ordinary of outstanding Class A shares Class B shares shares Thousands Thousands Thousands As of December 31, 2018 13,833 47,619 61,452 Transfer between classes (1,750) 1,750 — Increase of share capital due to exercise of options by employees during the year — 641 641 As of December 31, 2019 12,083 50,010 62,093 Transfer between classes (1,669) 1,669 — Increase of share capital due to exercise of options by employees during the year — 286 286 As of December 31, 2020 10,414 51,965 62,379 In case of liquidation, the Company’s assets remaining after settlement with creditors, payment of dividends and redemption of the par value of shares is distributed among the ordinary shareholders proportionately to the number of shares owned. The other reserves of the Group’s equity represent the financial effects from changes in equity settled share-based payments to employees, acquisitions and disposals, as well as other operations with non-controlling interests in the subsidiaries without loss of control. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt | |
Debt | 17. As of December 31,2020 and December 31, 2019, Group’s debt consisted of the following: As of As of Credit limit December 31, December 31, (RUB) Interest rate Maturity 2019 2020 Current interest - bearing debt Bank’ revolving credit facility 460 Up to 10%* December 31, 2021 — — Non-current interest - bearing debt Bank’ revolving credit facility 1,000 8.5%** October 7, 2021** 765 604 Bank’ revolving credit facility 1,000 8.5%** December 22, 2021** 780 945 Bonds issued 5,000 October 10, 2023 — 5,014 Total debt 1,545 6,563 Including short-term portion — 1,640 * the agreement stipulated the right of a lender to increase the interest rate in case the covenants are violated. ** the agreement stipulated the right of a lender to increase the interest rate and demand of early repayment in case the covenants are violated. The Covenants are violated as of December 31, 2020. In October 2020 the Group issued unsecured bonds at the principal amount of RUB 5 billion with a fixed nominal interest rate of 8.4% (Issue costs amounted to 83, so that the effective interest rate comprised 9.3%). The Bonds are due in 2023. The Group is subject to different covenants regarding these bonds issued. As of December 31, 2020, the Group was in compliance with all covenants stipulated by the public irrevocable offers. Interest expense regarding Group's debt for the year ended December 31, 2020 amounted for 218 (2019 - 17). Bank’ revolving credit facilities in the amount of 2,000 are secured (see Note 27). |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other payables | |
Trade and other payables | 18. As of December 31, 2020 and 2019, the Group’s trade and other payables consisted of the following: As of As of December 31, December 31, 2019 2020 Payables to merchants 12,116 12,801 Money remittances and e-wallets accounts payable 6,515 5,725 Deposits received from agents 6,246 8,357 Commissions payable 503 465 Accrued personnel expenses and related taxes 883 1,386 Provision for undrawn credit commitments (Note 27) 98 — Other payables 934 794 Total trade and other payables 27,295 29,528 |
Customer accounts and amounts d
Customer accounts and amounts due to banks | 12 Months Ended |
Dec. 31, 2020 | |
Customer accounts and amounts due to banks | |
Customer accounts and amounts due to banks | 19. As of December 31, 2020 and 2019, customer accounts and amounts due to banks consisted of the following: As of As of December 31, December 31, 2019 2020 Individuals’ current/demand accounts 11,553 1,539 Legal entities’ current/demand accounts 4,599 6,995 Term deposits 3,251 1,156 Due to banks 2,560 2,647 Total customer accounts and amounts due to banks 21,963 12,337 Including long-term deposits 444 36 Customer accounts and amounts due to banks bear interest of up to 4% (2019 - 6%). |
Investment in associates
Investment in associates | 12 Months Ended |
Dec. 31, 2020 | |
Investment in associates | |
Investment in associates | 20. The Group has a single associate: JSC Tochka. QIWI Group assesses its share in the entity at 45% according to its share in dividends and potential capital gains. The Group’s interest in JSC Tochka is accounted for using the equity method in the consolidated financial statements. The following table illustrates summarized financial information of the Group’s investment in JSC Tochka associate: As of As of December 31, December 31, 2019 2020 Associates’ statement of financial position: Non-current assets 1,199 1,437 Current assets 2,019 3,729 including cash and cash equivalents 995 2,631 Non-current financial liabilities (337) (263) Current liabilities (397) (1,270) including financial liabilities (314) (959) Net assets 2,484 3,633 Carrying amount of investment in associates (45%) of net assets 1,118 1,635 Associate’ revenue and net income for the years ended December 31 was as follows: 2018 2019 2020 Revenue 4 Cost of revenues (3) (289) (453) Other income and expenses, net (85) (4,565) (5,752) including personnel expenses (1) (2,147) (2,965) including depreciation and amortization (1) (129) (297) Total net profit/(loss) (84) 1,492 Group’s share (45%) of total net profit/(loss) (38) |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 21. The Group has commercial lease agreements of office buildings. The leases have an average life up to nine years. The contracts for a term of less than a year fall under the recognition exemption for being short-term leases. Total lease expense for the year ended December 31, 2020 recognized under such contracts is 60 (for the year ended December 31, 2019 - 198). Future minimum lease rentals under non-cancellable lease commitments for office premises for a term less than one year as of December 31, 2020 are 21 (December 31, 2019 - 32). For long-term contracts, right-of-use assets and lease liabilities were recognized. Right-of-use assets are included into property and equipment. The change in the balances of Right-of-use assets and Lease liabilities the year ended December 31, 2020 was as follows: Right-of-use assets Lease liabilities Office buildings As of January 1, 2020 1,352 1,357 Additions 263 263 Derecognition (200) (204) Depreciation (328) — Interest expense — 116 Payments — (416) As of December 31, 2020 1,087 1,116 Including short-term portion 354 The change in the balances of Right-of-use assets and Lease liabilities the year ended December 31, 2019 was as follows: Right-of-use assets Lease Office buildings liabilities As of January 1, 2019 936 1,068 Additions 891 851 Derecognition (171) (175) Depreciation (304) — Interest expense — 95 Payments — (482) As of December 31, 2019 1,352 1,357 Including short-term portion 340 For the amount of rent expense recognized from short-term leases and variable lease payments for year ended December 31, 2020, December 31, 2019 and December 31, 2018 see Note 24. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue | |
Revenue | 22. Other revenue for the years ended December 31 was as follows: 2018 2019 2020 Cash and settlement service fees 2,980 932 512 Platform and marketing services related fees 98 157 794 Fees for guarantees issued 25 121 440 Other revenue 122 228 208 Total other revenue 3,225 1,438 1,954 For the purposes of consolidated cash flow statement, “Interest income, net” includes both continued and discontinued operations and consists of the following: 2018 2019 2020 Interest revenue calculated using the effective interest rate (1,255) (1,961) (2,390) Interest expense classified as part of cost of revenue 26 47 288 Interest income and expenses from non-banking loans, net, classified separately in the consolidated statement of comprehensive income (17) 18 68 Interest income and expenses related to discontinued operations (536) (1,005) (659) Interest income, net, for the purposes of consolidated cash flow statement (1,782) (2,901) (2,693) |
Cost of revenue
Cost of revenue | 12 Months Ended |
Dec. 31, 2020 | |
Cost of revenue | |
Cost of revenue | 23. Cost of revenue for the years ended December 31 was as follows: 2018 2019 2020 Transaction costs 9,324 12,633 14,777 Cost of cash and settlement service fees 105 164 171 Interest expense 26 47 288 Other expenses 877 1,231 1,258 Total cost of revenue 10,332 14,075 16,494 |
Selling, general and administra
Selling, general and administrative expenses | 12 Months Ended |
Dec. 31, 2020 | |
Selling, general and administrative expenses | |
Selling, general and administrative expenses | 24. Selling, general and administrative expenses for the years ended December 31 were as follows: 2018 2019 2020 Advertising, client acquisition and related expenses 1,176 562 301 Tax expenses, except income and payroll related taxes 427 367 316 Advisory and audit services 478 537 611 Rent of premises 461 102 113 Expenses related to Tochka platform services — 538 382 IT related services 300 325 346 Offering expenses — 79 71 Other expenses 991 932 593 Total selling, general and administrative expenses 3,833 3,442 2,733 |
Dividends paid and proposed
Dividends paid and proposed | 12 Months Ended |
Dec. 31, 2020 | |
Dividends paid and proposed | |
Dividends paid and proposed | 25. Dividends paid and proposed by the Group to the shareholders of the parent are presented below: 2018 2019 2020 Proposed, declared and approved during the year: 2020: Final dividend for 2019: U.S.$ 13,667,632 or U.S.$ 0.22 per share, Interim dividend for 2020: U.S.$ 50,489,929 or U.S.$ 0.81 per share 4,797 2019: Interim dividend for 2019: U.S.$ 51,969,316 or U.S.$ 0.84 per share 3,366 2018: nil — Paid during the period*: 2020: Final dividend for 2019: U.S.$ 13,667,632 or U.S.$ 0.22 per share, Interim dividend for 2020: U.S.$ 50,489,929 or U.S.$ 0.81 per share 4,804 2019: Interim dividend for 2019: U.S.$ 51,969,316 or U.S.$ 0.84 per share 3,392 2018: nil — Proposed for approval (not recognized as a liability as of December 31): 2020: Final dividend for 2020: U.S.$ 19,337,438 or U.S.$ 0.31 per share 1,411 2019: Final dividend for 2019: U.S.$ 13,660,424 or U.S.$ 0.22 per share 1,011 2018: nil — Dividends payable as of December 31 — — — * The difference between paid and declared dividends represents foreign exchange movement |
Income tax
Income tax | 12 Months Ended |
Dec. 31, 2020 | |
Income tax | |
Income tax | 26. The Company is incorporated in Cyprus under the Cyprus Companies Law, but the business activity of the Group and joint ventures is subject to taxation in multiple jurisdictions, the most significant of which include: Cyprus The Company is subject to 12.5% corporate income tax applied to its worldwide income. The Company is exempt from the special contribution to the Defence Fund on dividends received from abroad. In 2020 the Сompany obtained a written confirmation from the Cyprus tax authorities in the form of a tax ruling in which the Cyprus tax authorities accept in writing not to impose any deemed dividend distribution liability since the Company is a public entity and it is impossible to identify the final minor shareholders. The Russian Federation The Company’s subsidiaries incorporated in the Russian Federation are subject to corporate income tax at the standard rate of 15% applied to income received from Russia government bonds and 20% applied to their taxable income. Withholding tax at the rate of 15% is applied to any dividends paid by the entities incorporated in Russia to the entities incorporated outside of Russia. Such withholding tax rate may be reduced to 5% or 10% under the available Double Tax Treaty (including Cyprus) if certain conditions stipulated thereto are met. Although the Group commonly seeks to claim treaty protection, there is a risk that the applicability of the reduced rate of 5% or 10% may be challenged by Russian tax authorities. As a result, there can be no assurance that the Company would be able to obtain a relief of the reduced withholding income tax rate under the available treaty in practice. The new Protocol of September 8, 2020 effective from January 1, 2021 increased WHT rates to 15% in respect of interest and dividend income paid to Cyprus (though it provides for a number of exceptions where the lower rates of 5% or 0% are envisaged). The Company believes that it fulfills the conditions for application of the reduced 5% tax rate under the amended Russia-Cyprus Double Tax Treaty in respect of dividend income. Republic of Kazakhstan The Company’s subsidiary incorporated in Kazakhstan is subject to corporate income tax at the standard rate of 20% applied to their taxable income. Deferred income tax assets and liabilities as of December 31, 2020 and 2019, relate to the following: Consolidated statement of Consolidated statement of financial position as of comprehensive income for the December 31 year ended 2019 2020 2019 2020 Intangible assets (638) (606) 90 32 Trade and other payables 272 238 91 (34) Trade and other receivables 58 25 27 (33) Loans issued 56 10 (13) (46) Lease obligations 287 222 287 (65) Property and equipment (261) (189) (238) 72 Taxes on unremitted earnings (480) (680) (202) (200) Other 174 28 86 (146) Net deferred income tax asset/ (liability) (532) (952) 128 (420) including: Deferred tax asset 217 209 Deferred tax liability (749) (1,161) Deferred tax assets and liabilities are not offset because they do not relate to income taxes levied by the same tax authority on the same taxable entity. Reconciliation of deferred income tax asset/(liability), net: 2018 2019 2020 Deferred income tax asset/(liability), net as of January 1 (581) (586) (532) Impact of adopting new accounting policies 49 — — Effect of acquisitions of subsidiaries 3 (74) — Deferred tax benefit/(expense) (57) 128 (420) Deferred income tax asset/(liability), net as of December 31 (586) (532) (952) As of December 31, 2020 the Group does not intend to distribute a portion of its accumulated unremitted earnings in the amount of 8,075 (2019 – 4,367). The amount of tax that the Group would pay to distribute them would be 403 (2019 - 218). Unremitted earnings include all earning that were recognized by the Group’s subsidiaries and that are expected to be distributed to the holding company. The major components of income tax expense, including tax expense from discontinued operations, for the years ended 31 December 2020, 2019 and 2018 are: 2018 2019 2020 Total tax expense Current income tax expense (818) (1,620) (2,498) Deferred tax benefit/(expense) (57) 128 (420) Income tax expense for the year (875) (1,492) (2,918) Theoretical and actual income tax expense is reconciled as follows: 2018 2019 2020 Profit before tax from continuing operations 8,932 11,954 14,365 Loss before tax from a discontinued operations (4,431) (5,575) (2,509) Accounting profit before tax 4,501 6,379 11,856 Theoretical income tax expense at the domestic rate in each individual jurisdiction (479) (824) (2,043) (Increase)/decrease resulting from the tax effect of: Non-taxable income 70 23 216 Non-deductible expenses (388) (387) (675) Income tax associated with earnings of foreign subsidiaries (70) (202) (333) Unrecognized deferred tax assets (8) (102) (83) Total income tax expense (875) (1,492) (2,918) Income tax attributable to a continuing operations (1,751) (2,513) (3,119) Income tax attributable to a discontinued operations 876 1,021 201 During the year ended December 31, 2020 the Group did not recognize deferred tax assets related to the tax loss carry forward in the amount of 83 (2019 – 102, 2018 – 8) because the Group did not believe that the realization of the related deferred tax assets is probable. |
Commitments, contingencies and
Commitments, contingencies and operating risks | 12 Months Ended |
Dec. 31, 2020 | |
Commitments, contingencies and operating risks | |
Commitments, contingencies and operating risks | 27. Operating environment Russia’s economy has been facing significant challenges for the past few years due to the combined effect of the ongoing crisis in Eastern Ukraine, the deterioration of Russia’s relationships with many Western countries, the economic and financial sanctions imposed in connection with these events on certain Russian companies and individuals, as well as against entire sectors of Russian economy, by the U.S., EU, Canada and other countries, a steep decline in oil prices, a record weakening of the Russian ruble against the U.S. dollar, a lack of access to financing for Russian issuers, capital flight and a general climate of political and economic uncertainty, among other factors. More recently, the ongoing COVID-19 pandemic and related lockdown measures have also contributed to the deterioration of the Russian economy. Consumer spending generally remained cautious even prior to the COVID-19 pandemic, which upended the modest recovery of the Russian economy in the few preceding years. The outbreak of the COVID-19 strain of coronavirus and associated responses from various countries around the world, which began in early 2020 and continue to unfold to date, have negatively affected consumer demand across the globe and across industries. As a result, the Russian ruble has significantly and abruptly depreciated against the U.S. dollar and euro, and such volatile exchange rate environment continues to prevail even though the oil prices have rebound somewhat. The full scope of the negative impact of the ongoing COVID-19 pandemic and the lockdown measures adopted in response may have on the Russian economy remains unclear but is likely to be very significant. A prolonged economic slowdown in Russia could have a significant negative effect on consumer spending in Russia and, accordingly, on the Group’s business. As a result of the challenging operating environment in Russia, the Group has experienced slower payment volume growth in certain payment categories. Further adverse changes in economic conditions in Russia could adversely impact the Group’s future revenues and profits and cause a material adverse effect on its business, financial condition and results of operations. A substantial part of the Russian population continues to rely on cash payments, rather than credit and debit card payments or electronic banking. The Group’s business has developed as a network of kiosks and terminals allowing consumers to use physical currency for online payments. While the Group has since largely outgrown that model, kiosks and terminals network remains a significant part of the Group’s infrastructure as a reload and client acquisition channel for Qiwi Wallet. Over time, the prevalence of cash payments is declining as a greater percentage of the population in emerging markets is adopting credit and debit card payments and electronic banking, and QIWI kiosks and terminals network is decreasing as the market evolves towards a higher share of digital payments. In 2020, the Group’s physical distribution network also was and to a certain extent continues to be, negatively affected by the spread of COVID-19 pandemic, corresponding lockdown measures, and other restrictions that limited users' access to certain retail locations as well as the overall activity of the population. Other factors could also contribute to a decline in the use of kiosks and terminals, including regulatory changes, increases in consumer fees imposed by the agents and development of alternative payment channels. All of these factors could have a material adverse effect on the Group’s business, financial condition and results of operations. Moreover, the financial services industry in which the Group operates with its payment services and other financial services that QIWI provides is highly competitive, and its ability to compete effectively is therefore of paramount importance. In recent years, the Group has started expanding its product portfolio beyond our traditional payment services business to include other types of financial services, such as digital banking services for small and medium enterprises (“SME”) and factoring and digital bank guarantees products. In connection with each of these projects, QIWI faces intense competition from a multitude of commercial and retail banks. Such banking institutions often have more established businesses in the various services similar to those offered by the Group. Any increase in competition by other market participants, or any shift of customer preferences in their favor due to any real or perceived advantages of their products, could result in a loss of consumers and harm to QIWI’s payment volume, revenue and margins. As major commercial and retail banks increase their online and virtual presence and come up with increasingly sophisticated products directly competing with the Group’s core competencies, its competitive position could be severely undermined, resulting in reduced demand for its products, both with respect to its payment services business and the other financial services projects that QIWI is pursuing. If the Group is unable to compete successfully for consumers, agents, merchants or other partners, its business, financial condition and results of operations could be materially adversely affected. Regulatory environment The QIWI’s business is impacted by laws and regulations that affect its industry, the number of which has increased significantly in recent years. The Group is subject to a variety of regulations aimed at preventing money laundering and financing criminal activity and terrorism, financial services regulations, payment services regulations, consumer protection laws, currency control regulations, advertising laws, betting laws and privacy and data protection laws and therefore experience periodic investigations by various regulatory authorities in connection with the same, which may sometimes result in monetary or other sanctions being imposed on the Group. In recent years, for example, the CBR has considerably increased the intensity of its supervision and regulation of the Russian banking sector. Qiwi Bank has been the subject of CBR investigations in the past that have uncovered various violations and deficiencies in relation to, among other things, reporting requirements, anti-money laundering, cybersecurity, compliance with applicable electronic payments thresholds requirements and other issues which management believes QIWI has generally rectified. In the second half of 2020, the CBR, acting in its supervisory capacity, performed another routine scheduled audit of Qiwi Bank. In the course of this audit the CBR has identified certain violations and deficiencies with respect to compliance with applicable banking legislation and regulations and reporting requirements to the CBR. The monetary fine imposed on Qiwi Bank as a result of these findings was 11. In addition, the CBR introduced certain restrictions with respect to Qiwi Bank’s operations, including, effective from December 7, 2020, the suspension or limitation of most types of payments to foreign merchants and money transfers to pre-paid cards from corporate accounts. Management is currently working closely with the CBR to remediate the identified deficiencies and violations and eliminate or narrow down the restrictions that have been imposed. As a result of such cooperation, the CBR permitted QIWI to resume processing payments to certain key foreign merchants and lifted some of the other restrictions imposed in December 2020. However, there can be no assurance that there will be any further easing of the restrictions that were originally imposed, or that they will not ultimately become permanent, including through the adoption of new laws or regulations. The restrictions introduced by the CBR are expected to have a substantial negative effect on the Group’s business, financial condition and results of operations. While management is taking measures to minimize the effect of the restrictions on QIWI business, no assurance can be given that we will be successful in doing so. Additionally, this abrupt termination of services of a large number of merchants may have reputational risks for the Group going forward. There can be no assurance that new sanctions will not be imposed on QIWI as a result of such or any past or future findings and that the Group will not come under greater CBR scrutiny in connection with any perceived deficiencies in its conduct, or that any currently planned or future inspections will not result in discovery of any significant or minor additional violations of various banking regulations, and of what sanctions the CBR may impose on QIWI in connection with such deficiencies or violations. Any such sanctions could have a material adverse effect on its business, financial condition and results of operations. As part of its business operations, the Group provides payment processing services to a number of merchants in the betting industry. Processing payments to such merchants represents a significant portion of the Group’s revenues. Processing such payments generally carries higher margins than processing payments to merchants in most other categories. Moreover, the repayment of winnings by such merchants to customers also serves as an important and economically beneficial Qiwi Wallet reload channel and new customer acquisition tool. The Group’s operating results will continue to depend on merchants in the betting industry and their use of the Group’s services for the foreseeable future. The betting industry is subject to extensive and actively developing regulation in Russia, as well as increasing government scrutiny. In 2016 QIWI Bank established a TSUPIS together with one of the self-regulated associations of bookmakers in order to be able to accept such payments, and we thereby became one of the two payment services providers that are able to accept electronic bets on behalf of sports betting companies in Russia. In December 2020, a new law was adopted, abolishing the mandatory participation of bookmakers in self-regulated organizations, establishing a Unified Gambling Regulator as a new governmental agency with broad authority to oversee the betting market, and creating the role of a single Unified Interactive Bets Accounting Center. This role is required to be assigned to a credit institution specifically authorized by the President of Russia based on a proposal made by the Government. By the end of September 2021, such newly-appointed Unified Interactive Bets Accounting Center will replace the existing TSUPIS. If the Group is not able to secure an active role in this new industry landscape, it may experience a decrease in or complete loss of payment volumes and income associated directly or indirectly with the TSUPIS established by Qiwi Bank. This or any further significant change in betting legislation may negatively affect the payment volume, revenue and margins of QIWI Payment Services business, as well as overall usage of Qiwi Wallet. Further, under the Russian betting legislation, the betting merchants that we serve may become "blacklisted" by the government if they have been found to be in violation of applicable Russian laws, in which case the Group has to discontinue servicing them. The Group has already experienced a number of instances where certain providers have been blacklisted and we observe that this trend is gaining momentum and further blacklistings are likely. Furthermore, in March 2021, a draft bill was submitted to the Russian legislature that would prohibit Russian credit institutions from contracting with any betting merchants, including foreign ones, that are not on a list of specifically approved betting merchants maintained by the regulator, or with foreign banks, foreign payment institutions and other payment facilitators processing or facilitating in any way payments of the "blacklisted" betting merchants. If this proposal becomes law, it will usher in a significant change of the regulatory regime, effectively replacing the prohibition on working with blacklisted merchants with a permission to work with "whitelisted" merchants exclusively. Both further blacklistings and any regulatory developments that impose additional restrictions on the betting industry may result in the contraction of the betting sector or QIWI’s share in this market and therefore adversely affect its financial condition and results of operations. The Group contracts with some of international merchants in U.S. dollars and other currencies such as Euros. Recently it started to encounter difficulties in conducting such transactions, even with respect to largest and most well-known international merchants, due to the refusal of an increasing number of the Group’s U.S. relationship banks and the correspondent U.S. banks of the Group’s non-U.S. relationship banks to service U.S. dollar payments. Even though the Group still maintains a number of U.S. dollar accounts with various financial institutions, at the same time the Group is already conducting a portion of U.S. dollar transactions with international merchants in other currencies, bearing additional currency conversion costs. No assurance can be given that such institutions or their respective correspondent banks in the U.S. will not similarly refuse to process the Group’s transactions, thereby further increasing the currency conversion costs that the Group has to bear or that international merchants will agree to accept payments in any currency, but the U.S. dollar in the future. If the Group is not able to conduct transactions in U.S. dollars, it may bear significant currency conversion costs or lose some merchants who will not be willing to conduct transactions in currencies other than the U.S. dollars, and the Group’s business, financial condition and results of operations may be materially adversely affected. Management can give no assurance that similar issues would not arise with respect to the Group’s transactions in other currencies, such as the Euro, which could have similarly adverse consequences. Know-your-client requirements in Russia The Group’s business is currently subject to know-your-client (KYC) requirements established by Federal Law of the Russian Federation No. 115-FZ “On Combating the Legalization (Laundering) of Criminally Obtained Income and Funding of Terrorism”, dated August 7, 2001, as amended, or the Anti-Money Laundering Law. Based on the Anti-Money Laundering Law management distinguishes three types of consumers based on their level of identification, being anonymous, identified through a simplified procedure and fully identified. There can be no assurance that the Group will always be able to collect all necessary data to perform the identification procedure in full or that the data the users provide us for the purposes of identification will not contain any mistakes or misstatements and will be correctly matched with the information available in the governmental databases. Due to the lack of clarity and gaps existing under the current customer identification legislation, management has to employ a risk-based approach to customer KYC and sometimes make judgment calls in applying anti-money laundering legislation, with the resulting risk of being found in non-compliance with it. Thus, current situation could cause the Group to be in violation of the identification requirements. In case management is forced to change its approaches to identification procedure or in case the identification requirements are further tightened, it could negatively affect the number of our consumers and, consequently, volumes and revenues. Additionally, Russian anti-money laundering legislation is in a constant state of development and is subject to varying interpretations. If the Group is found to be in non-compliance with any of its requirements, it could not only become subject to fines and other sanctions, but could also have to discontinue to process operations that are deemed to be in breach of the applicable rules and lose associated revenue streams. Risk of cybersecurity breach The Group stores and/or transmits sensitive data, such as credit or debit card numbers, mobile phone numbers and other identification data, and the Company has ultimate liability to its customers for the failure to protect this data. The Company has experienced breaches of its security by hackers in the past, and breaches could occur in the future. In such circumstances, the encryption of data and other protective measures have not prevented unauthorized access and may not be sufficient to prevent future unauthorized access. Any breach of the system, including through employee fraud, may subject the Company to material losses or liability, including fines and claims for unauthorized purchases with misappropriated credit or debit card information, identity theft, impersonation or other similar fraud claims. These risks are exacerbated by the COVID-19 pandemic and related lockdowns, since unauthorized access to data may potentially be easier when a large percentage of employees works from home. Moreover, even in the absence of an emergency event such as a cyberbreach, the Group may at times be found to be not in compliance with applicable personal data processing and transfer legislation, which is actively developing and becoming increasingly complex throughout the world, including in Russia. A misuse of such sensitive data or a cybersecurity breach could harm the Group’s reputation and deter clients from using electronic payments as well as kiosks and terminals generally and any of the Group’s services specifically, increase operating expenses in order to correct the breaches or failures, expose the Group to uninsured liability, increase risk of regulatory scrutiny, subject the Group to lawsuits, result in the imposition of material penalties and fines by state authorities and otherwise materially adversely affect the Group’s business, financial condition and results of operations. Taxation in Cyprus As of today, there are no specific transfer pricing rules or any transfer pricing documentation requirements in the Cyprus tax laws with respect to any other related party transactions. However, Cyprus is in the late stages of adopting transfer pricing rules, covering all types of inter-company transactions and require the preparation of a Local and Master File as well as Summary Information Table in line with the OECD Transfer Pricing Guidelines (subject to the relevant thresholds). The Cyprus draft transfer pricing legislation is expected to be enacted within the coming months. Furthermore, on March 19, 2019 the Cypriot Ministry of Finance circulated, on March 19, 2019, a draft bill (the Bill) to transpose the European Union (EU) Directive 2018/822/EU of May 25, 2018 on the mandatory disclosure and exchange of cross-border tax arrangements (referred to as DAC6 or the Directive) into the Cypriot national legislation. The Bill will amend the existing Cypriot law on Administrative Cooperation in the field of Taxation. The Directive requires intermediaries (including EU-based tax consultants, banks and lawyers) and in some situations, taxpayers, to report certain cross-border arrangements (reportable arrangements) to the relevant EU member state tax authority. Cross-border arrangements will be reportable if they contain certain features (known as hallmarks). The hallmarks cover a broad range of structures and transactions. Determining if there is a reportable cross-border arrangement raises complex technical and procedural issues for taxpayers and intermediaries. The Company would review its policies and strategies for logging and reporting tax arrangements to ensure its compliance with the abovesaid obligations. On June 24, 2020, the Council of the European Union announced that the EU will give EU Member States the option of more time to comply with certain rules on cross-border information reporting. The deferral is provided as a response to the COVID-19 pandemic. The rules of the Directive are already effective as from June 25, 2018 and any legally reportable cross-border arrangements starting from the effective date must be disclosed by August 31, 2020 (extended until February 28, 2021). Based on an announcement issued by the Cyprus tax authorities on February 3, 2021, the Directive is expected to be incorporated into the Cyprus legislation soon and the deadline for submission of any information is extended until March 31, 2021 for reportable cross border arrangements that have been made between (a) 25 June 2018 and 30 June 2020, (b) between January 1, 2021 and January 31, 2021 and (c) between January 1, 2021 and February 28, 2021. Following the global trend on increase of substance requirements in various jurisdictions, starting from 2019 certain jurisdictions (including traditional offshore jurisdictions) implement legislation that requires companies registered in the relevant offshore jurisdiction to maintain actual substance on the territory of such jurisdictions, which may include, amongst others, the qualified personnel, premises located in the particular jurisdiction, reasonable expenses to support daily operation of the company. It cannot be excluded that the Group might be subject to additional costs and/or tax liabilities resulted from the said requirements, which could have a material adverse effect on the Group’s business, financial condition and results of operations. Taxation in the Russian Federation Russian and the CIS’s tax, currency and customs legislation is subject to varying interpretations, and changes, which can occur frequently. For instance, introduction of the concept of beneficial ownership may result in the inability of the foreign companies within the Group to claim benefits under a double taxation treaty through structures which historically have benefited from double taxation treaty protection in Russia. Recent court cases demonstrate that the Russian tax authorities actively challenge application of double tax treaty benefits retroactively (i.e. prior to concept of beneficial ownership was introduced in the Russian Tax Code) on the grounds that double tax treaties already include beneficial ownership requirement to allow application of reduced tax rates or exemptions. In these cases, the Russian tax authorities obtained relevant information by means of information exchange with the foreign tax authorities. Withholding tax at the rate of 15% is applied to any dividends paid by the entities incorporated in Russia to the entities incorporated outside of Russia. The Group commonly seeks to claim treaty protection, as such withholding tax rate (hereinafter “WHT)” may be reduced to 5% under the available Double Tax Treaty (including Cyprus) if certain conditions stipulated thereto are met. The new Protocol of September 8, 2020 has come into effect from January 2021 increased WHT rates in respect of interest and dividend income to 15% (though it provides for a number of exceptions where the lower rates of 5% or 0% are envisaged). The reduced 5% tax rate in respect of dividend and interest income is envisaged for certain categories of income recipients, including public companies whose shares are listed on a registered stock exchange provided that at least 15% of the voting shares of that company are in free float and which holds directly at least 15% of the capital of the company paying the dividends throughout a 365 day period that includes the day of payment of the dividends. The Company believes that it fulfills the conditions for application of the reduced 5% tax rate under the amended Russia-Cyprus Double Tax Treaty in respect of dividend income. However, there is no assurance that the Russian Ministry of Finance will not revise its position in the future or that the Russian tax authorities will not challenge the Company’s position in this respect. It is rather unlikely that the reduced WHT rate under the Russia-Cyprus Double Tax Treaty will be applied to interest income.Starting from January 1, 2017, the Russian Tax Code requires the tax agent to obtain confirmation from the non-resident holder-legal entity that it is the beneficial owner of the relevant income. Russian tax law provides neither the form of such confirmation nor the precise list of documents which can demonstrate the beneficial owner status of the recipient with respect to the received income. Due to the introduction of these changes, there can be no assurance that treaty relief at source will be available in practice. According to the recent clarifications of the Russian tax authorities, a foreign company may not benefit from a double tax treaty if its activity does not have a real business purpose, if such company does not bear any risks that are normal for business activity, such company does not benefit from the use of such income and its employees actually do not control/ manage such company. If activities of the company are limited to investments and/or financing of a group of companies, it cannot be considered as an independent business activity and it is not enough to confirm the beneficial owner status of the recipient of income. In addition, it is unclear how the beneficial ownership concept will evolve in the future. As a result, there is a risk that application of the concept of beneficial ownership may result in the inability of the foreign companies within our Group to claim benefits under a double taxation treaty through structures which historically have benefited from double taxation treaty protection in Russia. Company intends to use simplified approach for confirmation of the beneficial ownership status that has recently been adopted for public companies with shares and (or) depository receipts comprising more that 25% of their share capital admitted to trade on a qualifying stock exchange if the respective confirmation letter on its beneficial ownership status and documents confirming publicly traded company status are in place. Since this simplified approach is relatively new and untested there is no assurance that the Russian tax authorities will not challenge our beneficial ownership status. On November 27, 2017 the Federal Law No. 340-FZ introducing country-by-country reporting (“CbCR”) requirements was published. In accordance with the CbCR requirements, if the Group reaches the reporting threshold in Russia (over RUB 50 billion), or alternatively in any other jurisdiction of presence (e.g. in Cyprus, where the Decree issued by the Cyprus Minister of Finance on December 30, 2016 introduced a mandatory CbCR for multinational enterprise groups generating consolidated annual turnover exceeding EUR 750 million) the Group may be liable to submit relevant CbCR. In addition, on November 24, 2016, the OECD published the multilateral instrument (“MLI”) which introduces new provisions to existing double tax treaties limiting the use of tax benefits provided thereof, e.g. by means of introduction of the “business purpose” test. To date the MLI has been ratified by Russia with respect to more than 71 double tax treaties signed by Russia with potential effective date of January 1, 2021. Starting from 2021, MLI has come into effect in respect of withholding taxes covered by tax treaties concluded by the Russian Federation with 34 countries (including tax treaty with Cyprus). Application of MLI could potentially limit tax benefits granted by double tax treaties of Russian Federation and Cyprus. The existing Russian transfer pricing rules became effective from January 1, 2012. Under these rules the Russian tax authorities are allowed to make transfer-pricing adjustments and impose additional tax liabilities in respect of certain types of transactions. It is therefore possible that the Group entities established in Russia may become subject to transfer pricing tax audits by tax authorities in the foreseeable future. There can be no assurance that the Russian Tax Code will not be changed in the future in a manner adverse to the stability and predictability of the Russian tax system. These factors, together with the potential for state budget deficits, raise the risk of the imposition of additional taxes on the Group. The introduction of new taxes or amendments to current taxation rules may have a substantial impact on the overall amount of the Group’s tax liabilities. There is no assurance that it would not be required to make substantially larger tax payments in the future, which may adversely affect the Group’s business, financial condition and results of operations. In its decision No 138-0 dated July 25, 2001, the Constitutional Court of the Russian Federation, or the Constitutional Court, introduced the concept of “a taxpayer acting in a bad faith” without clearly stipulating the criteria for it. Although this concept is not defined in Russian tax law, it has been used by the tax authorities to deny, for instance, the taxpayer’s right to obtain tax deductions and benefits provided by the tax law. The tax authorities and courts often exercise significant discretion in interpreting this concept in a manner that is unfavorable to taxpayers. The concept of “unjustified tax benefit” was formulated in Resolution No. 53 issued by the Plenum of the Supreme Arbitrazh Court of the Russian Federation in 2006. The concept is defined in the resolution mainly by reference to specific examples of tax benefits obtained as a result of a transaction that has no reasonable business purpose and which may lead to disallowance of their application. On July 19, 2017, new anti-avoidance provisions were introduced into the Russian Tax Code and the Article 54.1 of the Russian Tax Code was adopted, which replaced the previously existing concept of “unjustified tax benefit”. These anti-avoidance provisions provide forestablish two specific criteria that should be met simultaneously to entitle a taxpayer to reduce the tax base or the amount of tax: (i) the main purpose of the transaction (operation) is not a non-payment (incomplete payment) and (or) offset (refund) of the amount of tax; and (ii) the obligation under the transaction (operation) is executed by a person who is a party to a contract entered into with the taxpayer and / or a person to whom the obligation to execute a transaction (operation) was transferred under a contract or law. The Russian Tax Code specifically indicates that signing of primary documents by an unidentified or unauthorized person, violation by the counterparty of tax legislation, the possibility to obtain the same result by a taxpayer by entering into other transactions not prohibited by law cannot be considered in itself as a basis for recognizing the reduction of the tax base or the amount of tax unlawful. However, application of these criteria is still under consideration of the tax authorities, therefore, no assurance can be given that positions of taxpayers will not be challenged by the Russian tax authorities The Russian Ministry of Finance issued clarifications that the concepts expressed in Resolution No. 53 and evolved in the relevant court practice should not be applied by the enactment of new anti-avoidance rules. However, it cannot be excluded that this new concept could be applied by the tax authorities in a broader sense. There were some recent publications in mass media with reference to the Head of Federal Tax Service of the Russian Federation stating that more than 85% of tax disputes based on Article 54.1 of the Russian Tax Code are ruled out in favor of the tax authorities. In view of this trend and taking into the account the uncertainties with application of anti-avoidance concept, this couldpossibly expose the Group to significant fines and penalties and to enforcement measures, despite the best efforts at compliance, and could result in a greater than expected tax burden. The existing Russian transfer pricing rules became effective from January 1, 2012. Under these rules the Russian tax authorities are allowed to make transfer-pricing adjustments and impose additional tax liabilities in respect of certain types of transactions (“controlled” transactions). The list of the “controlled” transactions includes transactions with related parties (with several exceptions such as guarantees between Russian non-banking organizations and interest-free loans between Russian related parties) and certain types of cross border transactions. Starting from 2019 transactions between Russian tax residents will be controlled only if the amount of income from the transactions between these parties within one year exceeds RUB 1 billion and at the same |
Balances and transactions with
Balances and transactions with related parties | 12 Months Ended |
Dec. 31, 2020 | |
Balances and transactions with related parties | |
Balances and transactions with related parties | 28. The following table provides the total amount of transactions that have been entered into with related parties during the years ended December 31, 2020 and 2019, as well as balances with related parties as of December 31, 2020 and December 31, 2019: For the year ended December 31, 2020 As of December 31, 2020 Purchases/ Amounts Amounts Sales to/ expenses owed by owed to income from from related related related related parties parties parties parties Associates 3 (525) 170 (116) Key management personnel — (422) — (142) Other related parties 9 (21) 8 (9) For the year ended December 31, 2019 As of December 31, 2019 Purchases/ Amounts Amounts Sales to/ expenses owed by owed to income from from related related related related parties parties parties parties Associates 121 (568) — (74) Key management personnel 1 (288) — (83) Other related parties 4 (27) 5 (1) Benefits of key management and Board of Directors generally comprise of short-term benefits amounted to 434 during the year ended December 31, 2020 (253 - for the year 2019, 120 - for the year 2018) and share-based payments amounted to 12 loss during the year ended December 31, 2020 (34 - for the year 2019, 36 - for the year 2018). |
Risk management
Risk management | 12 Months Ended |
Dec. 31, 2020 | |
Risk management | |
Risk management | 29 . The main risks that could adversely affect the Group's financial assets, liabilities or future cash flows are foreign exchange risk, liquidity and credit risk. Management reviews and approves policies for managing each of the risks which are summarized below. Foreign exchange risk Foreign exchange risk is the risk that fluctuations in exchange rates will adversely affect items in the Group’s statement of comprehensive income, statement of financial position and/or cash flows. Foreign currency denominated assets and liabilities give rise to foreign exchange exposure. Foreign currency sensitivity The following tables demonstrate the sensitivity to a reasonably possible change in US Dollar and Euro exchange rates against Ruble, with all other variables held constant. The impact on the Group’s profit before tax is due to changes in the carrying amount of monetary assets and liabilities denominated in US Dollar and Euro when these currencies are not functional currencies of the respective Group subsidiary. The Group’s exposure to foreign currency changes for all other currencies is not material. Effect on profit before tax change in US Dollar Gain/(loss) 2020 +10% 192 -10% (192) 2019 +13% 147 -11% (124) Effect on profit before tax change in Euro Gain/(loss) 2020 +10% (2) - 10% 2 2019 +13% 192 -11% (162) Liquidity risk and capital management Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Group seeks to maintain a stable funding base primarily consisting of agents’ deposits, current accounts and due to banks, retail deposits from customers and debt. The Deposits received from agents are due on demand, but are usually offset against future payments processed through agents. The Group expects that agents’ deposits will continue to be offset against future payments and not be called by the agents. Сustomer accounts and amounts due to banks, trade and other payables are due on demand. The Group has sufficient cash balances and keeps it in diversified portfolios of liquid instruments such as government bonds, correspondent account with CBR and overnight placements in high-rated commercial banks, in order to be able to respond timely and steady to unforeseen liquidity requirements. Since 2014, the Russian economy has been going through a period of macroeconomic slowdown and liquidity shortage in a number of markets (including those in which the Group operates), caused among other things by falling oil prices, ruble devaluation and the economic sanctions regime. Banks and other entities in Russia decreased credit limits in their everyday operations and it was noted that the Group’s merchants and partners also started and in certain cases continued to request from the Group larger collaterals to hedge their risks. The Group was able to manage these conditions and requirements to date, though the liquidity shortage in the market if exacerbated may have further negative effects on the Group’s operations, which cannot be now reliably estimated. According to CBR requirements, a bank’s capital calculated based on CBR instruction should be not less than certain portion of its risk-adjusted assets. As of December 31, 2020, QIWI Bank JSC’s capital ratio is above the minimal level required of 8%. The Group monitor the fulfillment of requirements on a daily basis and send the reports to CBR on a monthly basis. During the years ended December 31, 2020 and 2019 QIWI Bank JSC met the capital adequacy requirements. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. Capital includes share capital, share premium, additional paid-in capital, other reserves and translation reserve. To maintain or adjust the capital structure, the Group may make dividend payments to shareholders, return capital to shareholders or issue new shares. Currently, the Group requires capital to finance its growth, but it generates sufficient cash from its operations. The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments. Due: More than a Total On demand Within a year year Debt (Note 17) 6,640 1,549 91 5,000 Lease liabilities (Note 21) 1,116 — 354 762 Trade and other payables (Note 18) 29,528 29,528 — — Customer accounts and amounts due to banks (Note 19) 12,337 11,181 1,120 36 Total as of December 31, 2020 49,621 1,565 5,798 Due: More than a Total On demand Within a year year Debt (Note 17) 1,545 — — 1,545 Lease liabilities (Note 21) 1,357 — 340 1,017 Trade and other payables (Note 18) 27,295 27,295 — — Customer accounts and amounts due to banks (Note 19) 21,963 18,712 2,807 444 Total as of December 31, 2019 52,160 46,007 3,147 3,006 Credit risk Financial assets of the Group, which potentially subject the Company and its subsidiaries, joint ventures and associates to credit risk, consist principally of trade receivables, loans issued, cash and short-term investments. The Group sells services on a prepayment basis or ensures that its receivables are from customers with an appropriate credit history – large merchants and agents with sufficient and appropriate credit history. The Group's receivables from merchants and others, except for agents, are generally non-interest-bearing and do not require collateral. Receivables from agents are interest-bearing and unsecured. The Group holds cash primarily with reputable Russian and international banks, including CBR, which management considers having minimal risk of default, although credit ratings of Russian and Kazakh banks are generally lower than those banks in more developed markets. Short-term investments include fixed-rate debt instruments issued by Russian Government. An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for groupings of various customer segments with similar loss patterns. The carrying amount of accounts receivable, net of allowance for impairment of receivables, represents the maximum amount exposed to the credit risk for this type of receivables (Note 13). Set out below is the information about the credit risk exposure on the Group’s trade and other receivables (except for advances issued) using a provision matrix: December 31, 2020 Days past due Current and <30 days 30-60 days 61-90 days >91 days Total Expected credit loss rate 0.13 % 1 % 69 % 92 % Exposure at default 6,092 1,035 230 118 7,475 Expected credit loss (8) (7) (159) (109) (283) December 31, 2019 Days past due Current and <30 days 30-60 days 61-90 days >91 days Total Expected credit loss rate 0.10 % 1 % 57 % 94 % Exposure at default 5,143 490 362 76 6,071 Expected credit loss (6) (3) (208) (71) (288) The Group evaluates the concentration of risk with respect to trade and other receivables on a regular basis. The customers are located in several jurisdictions and industries and operate in largely independent markets. The table below demonstrates the largest counterparties’ balances, as a percentage of respective totals: Trade and other receivables As of December 31, As of December 31, 2019 2020 Concentration of credit risks by main counterparties, % from total amount Top 5 counterparties 43 % 54 % Others 57 % 46 % As part of the credit risk assessment of the factoring transactions, the Group evaluates the credit risk of an individual client as well as of the debtor. Management believes that debtor risk assessment is an important source of additional security and credit quality guarantee. Procedures and responsibilities for assessing and managing credits risks of clients and debtors are clearly stipulated in the Group internal risk policy. To assess clients’ accounts receivables as a form of collateral, management analyzes each debtor individually and collectively at the portfolio level (risk concentration, turnover ratios and other parameters). We also make allowances for the dual structure of collateral for the assets placed under factoring operations. According to such structure, the debtor whose receivables are assigned to the Group must fulfill its obligations and in case the debtor fails to fulfill its contractual liabilities, the liabilities are transferred to the client under recourse. Compared with traditional lending, therefore, the assets are better collateralized and the credit risk is lower. The management established a credit committee that develops and approves general principles for lending and takes special measures to mitigate credit risk such as a reduction of the credit limits for unreliable clients and more advanced scoring models for the new borrowers. See Note 12 for the carrying amount of loans issued and the maximum amount exposed to the credit risk for these type of assets. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
Financial instruments | |
Financial instruments | 30. The Group's principal financial instruments consisted of loans receivable, trade and other receivables, customer accounts and amounts due to banks, trade and other payables, cash and cash equivalents, long and short-term debt instruments and reserves at CBR. The Group has various financial assets and liabilities which arise directly from its operations. During the year, the Group did not undertake trading in financial instruments. The fair value of the Group's financial instruments as of December 31, 2020 and 2019 is presented by type of the financial instrument in the table below: As of December 31, 2019 As of December 31, 2020 Carrying Fair Carrying Fair amount value amount value Financial assets Debt securities and deposits AC 3,825 3,913 6,383 6,476 Debt securities and deposits FVOCI 1,294 1,294 — — Long-term loans AC 249 249 196 196 Long-term loans FVPL 16 16 18 18 Total financial assets 5,384 5,472 6,597 6,690 Financial liabilities Bonds issued AC — — 5,014 5,134 Financial instruments used by the Group are included in one of the following categories: - AC – accounted at amortized cost; - FVOCI - accounted at fair value through other comprehensive income; - FVPL – accounted at fair value through profit or loss. Carrying amounts of cash and cash equivalents, short-term loans issued, short-term deposits placed, debt, accounts receivable and payable, reserves at CBR, lease liabilities, customer accounts and amounts due to banks approximate their fair values largely due to short-term maturities of these instruments. Debt securities of the Group mostly consist of RUB nominated government and high-quality corporate bonds with interest rate 7.0% - 7.6% and maturity up to January 2023. Some of debt securities are pledged (Note 27). Long-term loans generally represent RUB nominated loans to Russian legal entities and have a maturity up to six years. For the purpose of fair value measurement of these loans the Group uses comparable marketable interest rate which is in range of 7‑35%. The following table provides the fair value measurement hierarchy of the Group’s financial instruments to be accounted or disclosed at fair value: Fair value measurement using Quoted prices Significant Significant in active observable unobservable markets inputs inputs Date of valuation Total (Level 1) (Level 2) (Level 3) Assets accounted at fair value through profit or loss Long-term loans December 31, 2020 18 — — 18 Assets for which fair values are disclosed Debt securities and deposits December 31, 2020 6,476 6,476 — — Long-term loans December 31, 2020 196 — — 196 Liabilities for which fair values are disclosed Bonds issued December 31, 2020 5,134 5,134 — — Assets accounted at fair value through profit or loss Long-term loans December 31, 2019 16 — — 16 Assets accounted at fair value through other comprehensive income Debt securities and deposits December 31, 2019 1,294 1,294 — — Assets for which fair values are disclosed Debt securities and deposits December 31, 2019 3,913 3,913 — — Long-term loans December 31, 2019 249 — — 249 There were no transfers between Level 1 and Level 2 fair value measurements and no transfers into or out of Level 3 fair value measurements during the year ended December 31, 2020 and 2019. The Group uses the following IFRS hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: - Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities; - Level 2: Other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly; - Level 3: Techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data. With regard to the level 3 assessment of fair value, management believes that no reasonably possible change in any of the unobservable inputs would be sensitive for financial assets accounted at fair value. Valuation methods and assumptions The fair value of the financial assets and liabilities are evaluated at the amount the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Long-term fixed-rate loans issued are evaluated by the Group based on parameters such as interest rates, terms of maturity, specific country and industry risk factors and individual creditworthiness of the customer. |
Share-based payments
Share-based payments | 12 Months Ended |
Dec. 31, 2020 | |
Share-based payments | |
Share-based payments | 31. 31.1. As of December 31, 2020, the Group has the following outstanding option plans: 2015 Restricted Stock Unit Plan 2019 Employee Stock (RSU Plan) Option Plan (2019 ESOP) Adoption date July, 2015 June, 2019 Type of shares class B shares class B shares Number of options or RSUs reserved Up to 2,100,000 shares Up to 3,100,000 shares Exercise price Granted during: Granted during: Year 2016: n/a Year 2019: U.S. $ 16.75 Year 2017: n/a Year 2020: U.S. $ 13.70-17.19 Year 2018: n/a Year 2019: n/a Exercise basis Shares Shares Expiration date December 2022 December 2026 Vesting period Three vesting during up to 2 years Two vesting during up to 4 years Other major terms - The units are not transferrable - The units are not transferrable - All other terms of the units under 2015 RSU Plan are to be determined by the Company's BOD or the CEO, if so resolved by the BOD, acting as administrator of the Plan -The Compensation Committee of the Board, acting as Administrator of the Plan, shall have the authority to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan as it deems advisable. In April 2018, QIWI plc established QIWI Employees Trust, which owns shares reserved for ESOP and RSU plans and transfers them to employees who exercise their options. The Trust is not a legal entity and major decisions relating to its activities are determined by QIWI plc. In these financial statements it is regarded as an extension of QIWI plc. 31.2. The following table illustrates the movements in share options during the year ended December 31, 2020: Forfeited As of Granted and expired Exercised As of December 31, during the during the during the December 31, 2019 period period period 2020 2012 ESOP 1,153,775 — (1,018,742) (135,033) — 2015 RSU Plan 365,723 — (38,696) (254,357) 72,670 2019 ESOP 930,000 700,000 — — 1,630,000 Total 2,449,498 700,000 (1,057,438) (389,390) 1,702,670 As of December 31, 2020 the Company has 1,630,000 options outstanding, all of which are unvested, and 72,670 RSUs outstanding, of which 32,570 are vested and 40,100 are unvested. The weighted average price for share options exercised under ESOP during the year was U.S. $13.65 and exercised under RSU plan was nil. 31.3. The valuation of all equity-settled options granted are summarized in the table below: Weighted average Number Weighted fair value of Risk-free Expec- average per option/ Option plan/ options/ Dividend Volatility, interest ted term, share price RSU (U.S. Valuation Grant date RSUs yield, % % rate, % years (U.S. $) $) method 2012 ESOP 4,128,521 0-5.03% 28%-49.85% 0.29%-3.85% 2-4 28.10 7.14 Black-Scholes-Merton 2015 RSU Plan 2,035,808 0-5.70% 40.65%-64.02% 2.89%-4.34% 0-2 15.26 14.56 Binominal 2019 ESOP 1,980,000 2.73%-8.76% 41.12%-65.47% 0.24%-1.94% 0-4 18.45 5.57 Black-Scholes-Merton The forfeiture rate used in valuation models granted during the year is from nil to 12%. It is based on historical data and current expectations and is not necessarily indicative of forfeiture patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome. 31.4. The amount of expense arising from equity-settled share-based payment transactions for the year ended December 31, 2020 was 43 (2019 - 464, 2018 – 635). |
Events after the reporting date
Events after the reporting date | 12 Months Ended |
Dec. 31, 2020 | |
Events after the reporting date | |
Events after the reporting date | 32. Dividends distribution On March 17, 2021 the Board of Directors of the Company approved dividends of U.S.$ 19,337,438 (equivalent of 1,411). |
Principles underlying prepara_2
Principles underlying preparation of consolidated financial statements and Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Principles underlying preparation of consolidated financial statements | |
Basis of preparation | 2.1 The consolidated financial statements are prepared on a historical cost basis. The consolidated financial statements are presented in Russian rubles (“RUB”) and all values are rounded to the nearest million (RUB (000,000)) except when otherwise indicated. The Group’s subsidiaries maintain and prepare their accounting records and prepare their statutory accounting reports in accordance with domestic accounting legislation. Standalone financial statements of subsidiaries are prepared in their respective functional currencies (see Note 3.3 below). The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) under the historical cost convention, as modified by the initial recognition of financial instruments based on fair value, and by revaluation of financial instruments categorised at fair value through profit or loss (FVTPL) and at fair value through other comprehensive income (FVOCI). The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. Despite the risks and uncertainties the Group is facing disclosed in Note 27, the management believes that the Group will continue to operate on a going concern basis in the foreseeable future. Therefore, these consolidated financial statements are prepared accordingly. |
Basis of consolidation | 2.2 The consolidated financial statements comprise the financial statements of QIWI plc and its subsidiaries as of December 31 each year. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: · Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee), · Exposure, or rights, to variable returns from its involvement with the investee, and · The ability to use its power over the investee to affect its returns. When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: · The contractual arrangement with the other vote holders of the investee, · Rights arising from other contractual arrangements, · The Group’s voting rights and potential voting rights. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group losses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the statement of comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intra-group balances, income, expenses and unrealized gains and losses resulting from intra-group transactions are eliminated in full, except for the foreign exchange gains and losses arising on intra-group loans. Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: · Derecognises the assets (including goodwill) and liabilities of the subsidiary. · Derecognises the carrying amount of any non-controlling interests, including any components of other comprehensive income attributable to them. · Recognises the fair value of the consideration received. · Recognises the fair value of any investment retained. · Recognises any surplus or deficit in profit or loss. · Reclassifies to profit or loss or retained earnings, as appropriate, the amounts previously recognized in OCI as would be required if the Group had directly disposed of the related assets or liabilities. |
Changes in accounting policies | 2.3 The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those followed in the preparation of the Group’s annual financial statements for the year ended December 31, 2019, except for the adoption of the new and amended IFRS and IFRIC interpretations as of January 1, 2020. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective. The following amended standards and interpretations became effective from January 1, 2020, but did not have any material impact on the financial statements of the Group: - Amendments to References to the Conceptual Framework in IFRS Standards (issued on March 29, 2018). - Amendments to IAS 1 and IAS 8: Definition of Material (issued on October 31, 2018). - Amendment to IFRS 3: Definition of a Business (issued on October 22, 2018). - Amendments to IFRS 9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform (issued in September, 2019) - Amendments to IFRS 16: Covid-19 Related Rent Concessions (issued in May 28, 2020 and effective since June 1, 2020). |
Standards issued but not yet effective | 2.4 The following other new pronouncements are not expected to have any material impact on the Group when adopted: - IFRS 17 Insurance Contracts (issued in May 2017 and effective for annual periods beginning on or after January 1, 2023) - Amendments to IAS 1: Classification of liabilities as current or non-current (issued on January 23, 2020 and effective for annual periods beginning on or after January 1, 2023) - Amendments to IFRS 3: Reference to the Conceptual Framework (issued in May 2020, and effective for annual periods beginning on or after January 1, 2022) - Amendments to IAS 16: Property, Plant and Equipment: Proceeds before Intended Use (issued in May 2020, and effective for annual periods beginning on or after January 1, 2022) - Amendments to IAS 37: Onerous Contracts – Costs of Fulfilling a Contract (issued in May 2020, and effective for annual periods beginning on or after January 1, 2022) - Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest rate benchmark (IBOR) reform (issued in August 2020 and effective for annual periods beginning on or after January 1, 2021) - Amendments to IAS 1 Presentaion of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies (issued in February 2021 and effective for annual periods beginning on or after January 1, 2023) - Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (issued in February 2021 and effective for annual periods beginning on or after January 1, 2023) - Amendments to IFRS 16: Covid-19 Related Rent Concessions beyond June 30, 2021 (issued in March 31, 2020 and effective since April 1, 2021). - 2018-2020 annual improvements to IFRS standards (effective for annual periods beginning on or after January 1, 2022): - IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time adopter - IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities - IAS 41 Agriculture – Taxation in fair value measurements |
Business combinations and goodwill | 3.1 Business combinations are accounted for using the acquisition method. Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Group to the previous owners of the acquiree, and equity interests issued by the Group. Consideration transferred also includes the fair value of any contingent consideration and share-based payment awards of the acquiree that are replaced mandatorily in the business combination. If a business combination results in the termination of pre-existing relationships between the Group and the acquiree, then the Group identifies any amounts that are not part of what the Group and the acquiree exchanged in the business combination. The Group recognizes as part of applying the acquisition method, only the consideration transferred for the acquiree and the assets acquired and liabilities assumed in the exchange for the acquiree. If the business combination is achieved in stages, any previously held equity interest is re-measured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss. It is then considered in the determination of goodwill. Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Subsequently, contingent consideration classified as an asset or liability, is measured at fair value with changes in fair value recognized in profit or loss. Contingent consideration that is classified as equity is not re-measured and subsequent settlement is accounted for within equity. The Group measures any non-controlling interest at its proportionate interest in the identifiable net assets of the acquiree. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated of the Group’s cash generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the acquired entity are assigned to those units. Where goodwill has been allocated to a cash-generating unit and certain operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed in this circumstance is measured based on the relative values of the operation disposed and the portion of the cash-generating unit retained. |
Investments in associates and joint ventures | 3.2 The Group’s investment in its associate and joint ventures are accounted for using the equity method. An associate is an entity in which the Group has significant influence. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. unanimous consent of the parties) have rights to the net assets of the arrangement. Under the equity method, the investment in the associate or joint venture is carried on the statement of financial position at cost plus post acquisition changes in the Group’s share of net assets of the associate/joint venture. Goodwill relating to the associate/joint venture is included in the carrying amount of the investment and is neither amortized nor individually tested for impairment. The statement of comprehensive income reflects the Group’s share of the results of operations of the associate/joint venture. When there has been a change recognized directly in the equity of the investment, the Group recognizes its share of any changes and discloses this, when applicable, in the statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and the associate/joint venture are eliminated to the extent of the interest in it. The Group’s share of profit of an associate/joint venture is shown on the face of the statement of comprehensive income or in the notes. This is the profit attributable to equity holders of the associate/joint venture and, therefore, is profit after tax and non-controlling interests in the subsidiaries of the associate/joint venture. The financial statements of the associates/joint ventures are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognize an additional impairment loss on its investment in its associates/joint ventures. The Group determines at each reporting date whether there is any objective evidence that the investment in the associate/joint venture is impaired. If this is the case, the Group calculates the amount of impairment as the difference between the recoverable amount of an investment in associate/joint venture and its carrying value and recognizes any respective loss in the statement of comprehensive income. Upon loss of significant influence over the associate/joint venture, the Group measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate/joint venture upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss. |
Foreign currency translation | 3.3 The consolidated financial statements are presented in Russian rubles (RUB), which is the Company’s functional and the Group’s presentation currency. Each entity in the Group determines its own functional currency, depending on what the underlying economic environment is, and items included in the financial statements of each entity are measured using that functional currency. Transactions in foreign currencies are initially recorded in the functional currency at the functional currency rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are re-measured in to the functional currency at the functional currency rate of exchange at the reporting date. All differences are taken to profit or loss. They are shown separately for each Group company but netted by major types of monetary assets and liabilities. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as of the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on retranslation of non-monetary items is treated in line with the recognition of gain or loss on change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in other comprehensive income or profit or loss is also recognized in other comprehensive income or profit or loss, respectively). The functional currency of the foreign operations is generally the respective local currency – US Dollar (U.S.$), Euro (€), Kazakhstan tenge (KZT), Belarussian ruble (BYR), Moldovan leu (MDL) and New Romanian leu (RON). As of the reporting date, the assets and liabilities of these operations are translated into the presentation currency of the Group (the Russian Ruble) at the rate of exchange at the reporting date and their statements of comprehensive income are translated at the average exchange rates for the year or exchange rates prevailing on the date of specific transactions. The exchange differences arising on the translation are recognized in other comprehensive income. On disposal of a foreign entity, the deferred cumulative amount recognized in equity relating to that particular foreign operation is reclassified to the profit or loss. The exchange rates of the Russian ruble to each respective currency as of December 31, 2020 and 2019 were as follows: Average exchange rates for Exchange rates at the year ended December 31, December 31, 2019 2020 2019 2020 US Dollar 64.7362 72.1464 61.9057 73.8757 Euro 72.5021 82.4481 69.3406 90.6824 Kazakhstan Tenge (100) 16.8972 17.4138 16.2174 17.5481 Belarussian Ruble 30.9653 29.5855 29.4257 28.6018 Moldovan Leu (10) 36.8844 41.7510 35.9917 42.9635 New Romanian Leu 15.2820 17.0333 14.4948 18.5809 The currencies listed above are not a fully convertible outside the territories of countries of their operations. Related official exchange rates are determined daily by the Central Bank of the Russian Federation (further CBR). Market rates may differ from the official rates but the differences are, generally, within narrow parameters monitored by the respective Central Banks. The translation of assets and liabilities denominated in the currencies listed above into RUB for the purposes of these financial statements does not indicate that the Group could realize or settle, in RUB, the reported values of these assets and liabilities. Likewise, it does not indicate that the Group could return or distribute the reported RUB value of capital and retained earnings to its shareholders. |
Property and equipment | 3.4 3.4.1 Cost of property and equipment Property and equipment are stated at cost less accumulated depreciation and any accumulated impairment loss. Expenditures for continuing repairs and maintenance are charged to the profit or loss as incurred. 3.4.2 Depreciation and useful lives Depreciation is calculated on property and equipment on a straight-line basis from the time the assets are available for use, over their estimated useful lives as follows: Processing servers and engineering equipment 3 - 10 years Computers and office equipment 3 - 5 years Other equipment 2 - 20 years Useful lives of leasehold improvements of leased office premises are determined at the lower between the useful live of the asset or the lease term. The asset’s residual values, useful lives and depreciation methods are reviewed, and adjusted as appropriate, at each financial year-end. |
Intangible assets | 3.5 3.5.1 Software and other intangible assets Software and other intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value as of the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortization and accumulated impairment losses. Amortization of the asset begins when development is complete and the asset is available for use. It is amortized over the period of expected generation of future benefits, generally 3‑5 years. During the period of development, the asset is tested for impairment annually. 3.5.2 Software development costs Development expenditure on an individual project is recognized as an intangible asset when the Group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development. 3.5.3 Useful life and amortization of intangible assets The Group assesses whether the useful life of an intangible asset is finite or indefinite and, if finite, the length of that useful life. An intangible asset is regarded by the entity as having an indefinite useful life when, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows for the entity. Intangible assets with finite lives are amortized on a straight-line basis over the useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. Below is the summary of useful lives of intangible assets: Customer relationships and contract rights 4 - 15 years Computer Software 3 - 10 years Bank license indefinite Trademarks and other intangible assets 3 - 11 years Amortization periods and methods for intangible assets with finite useful lives are reviewed at least at each financial year-end. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and treated as changes in accounting estimates. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. Indefinite-lived intangible assets include the acquired licenses for banking operations. It is considered indefinite-lived as the related license is expected to be renewed indefinitely. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of comprehensive income when the asset is derecognized. |
Impairment of non-financial assets | 3.6 The Group assesses at each reporting date whether there is an indication that an asset, other than goodwill and intangible assets with indefinite useful life, may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their 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 asset. In determining fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded analogues, if applicable, or other available fair value indicators. The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Group’s cash generating units (CGU), to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years or longer, when management considers appropriate. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the last year. Impairment losses of continuing operations are recognized in profit or loss in those expense categories consistent with the function of the impaired asset. For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group makes an estimate of recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in profit or loss. The following criteria are also applied in assessing impairment of specific assets: Goodwill Goodwill is tested for impairment annually and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of the cash-generating units, to which the goodwill relates. Where the recoverable amount of the cash-generating units is less than their carrying amount an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. The Group performs its annual impairment test of goodwill as of December 31 and whenever certain events and circumstances indicate that its carrying value may be impaired. Intangible assets with indefinite useful life Intangible assets with indefinite useful life are tested for impairment annually as of December 31, either individually or at the cash generating unit level, as appropriate and whenever events and circumstances indicate that an asset may be impaired. |
Financial assets | 3.7 3.7.1 Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15. In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. 3.7.2 Subsequent measurement For purposes of subsequent measurement, financial assets are classified in four categories: - Financial assets at amortised cost - Financial assets at fair value through OCI with recycling of cumulative gains and losses - Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition - Financial assets at fair value through profit or loss Financial assets at amortised cost This category is the most relevant to the Group. The Group measures financial assets at amortised cost if both of the following conditions are met: - The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows, And - The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Group’s financial assets at amortised cost includes cash and cash equivalents, reserves at CBR, debt instruments, trade and other receivables and loans issued. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the profit or loss section of statement of comprehensive income. The Group’s financial assets at fair value through profit or loss includes several loans that did not pass SPPI test. Financial assets at fair value through OCI For debt securities at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss. The Group's debt securities at fair value through OCI represent investments in quoted debt securities included under long-term and short-term debt securities and deposits. 3.7.3 Impairment - credit loss allowance for ECL The Group assesses and recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. The measurement of ECL reflects: - an unbiased and probability weighted amount that is determined by evaluating a range of possible outcomes; - the time value of money; and - all reasonable and supportable information that is available without undue cost and effort at the end of each reporting period about past events, current conditions and forecasts of future economic conditions. Debt instruments measured at AC are presented in the consolidated statement of financial position net of the allowance for ECL. For loan commitments (where those components can be separated from the loan), a separate provision for ECL is recognised as other financial liabilities as part of accounts payable in the consolidated statement of financial position. For debt instruments at FVOCI, an allowance for ECL is recognised in profit or loss and it affects fair value gains or losses recognised in OCI rather than the carrying amount of those instruments. The Group applies a “three stage” model for impairment in accordance with IFRS 9, based on changes in credit quality since initial recognition: 1. A financial instrument that is not credit-impaired on initial recognition is classified in Stage 1. Financial assets in Stage 1 have their ECL measured at an amount equal to the portion of lifetime ECL that results from default events possible within the next 12 months (12 month ECL). 2. If the Group identifies a significant increase in credit risk (“SICR”) since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis (lifetime ECL). 3. If the Group determines that a financial asset is credit-impaired, the asset is transferred to Stage 3 and its ECL is measured as a lifetime ECL. For financial assets that are credit-impaired on purchase or at origination, the ECL is always measured at a lifetime ECL. Note 30 provides information about inputs, assumptions and estimation techniques used in measuring ECL, including an explanation of how the Group incorporates forward-looking information in the ECL models. 3.7.4 A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognized when: - The rights to receive cash flows from the asset have expired - The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. |
Financial liabilities | 3.8 3.8.1 Initial recognition and measurement All financial liabilities are recognised initially at fair value, minus, in the case of financial liability not at fair value through profit or loss, transaction costs that are directly attributable to issue of financial liability. The Group classifies all financial liabilities as subsequently measured at amortised cost (trade and other payables, debt, deposits, customer accounts and amounts due to banks), except for financial liabilities at fair value through profit or loss and financial guarantees. 3.8.2 Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. The Group has no such instruments. Debt and deposits This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the profit or loss section of statement of comprehensive income. Financial guarantees Subsequent to initial recognition, the Group’s liability under each guarantee is measured at the higher of the amount initially recognised less cumulative amortisation recognised in the income statement, and an ECL allowance. The premium received is recognised in the income statement in Commissions and other revenue on a straight line basis over the life of the guarantee. Undrawn loan commitments Undrawn loan commitments are commitments under which, over the duration of the commitment, the Group is required to provide a loan with pre-specified terms to the customer. Commitments to provide loans are initially recognised at their fair value, which is normally evidenced by the amount of fees received. At the end of each reporting period, the commitments are measured at the amount of the loss allowance determined based on the expected credit loss model. For loan commitments (where those components can be separated from the loan), a separate provision for ECL is recognised as a liability in the consolidated statement of financial position. 3.8.3 Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognized in profit or loss. In accordance with terms and conditions of use of e-wallet accounts and system rules, the Group charges a fee on its consumers on the balance of unused accounts after certain period of inactivity and unclaimed payments. Such fees are recorded as revenues in the period a fee is charged. 3.8.4 Offsetting financial assets and liabilities Financial assets and financial liabilities are offset and the net amount reported in the consolidated statement of financial position if, and only if: - There is a currently enforceable legal right to offset the recognized amounts; and - There is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously. The right of set-off: - Must not be contingent on a future event; and Must be legally enforceable in all of the following circumstances: (i) the normal course of business; (ii) the event of default; and (iii) the event of insolvency or bankruptcy of the entity and all of the counterparties |
Cash and cash equivalents | 3.9 Cash comprises cash at banks and in hand and short-term deposits with an original maturity of three months or less and are included as a component of cash and cash equivalents for the purpose of the statement of financial position and statement of cash flows. |
Employee benefits | 3.10 3.10.1 Short-term employee benefits Wages and salaries paid to employees are recognized as expenses in the current year. The Group also accrues expenses for future vacation payments and short-term or long-term employee bonuses. 3.10.2 Social contributions and defined contributions to pension fund Under provisions of the Russian legislation, social contributions include defined contributions to pension and other social funds of Russia and are calculated by the Group by the application of a regressive rate (from 30% to 15% in 2020, 2019 and 2018) to the annual gross remuneration of each employee. For the year ended December 31, 2020 defined contributions to pension funds of Russia of the Group amounted to 861 (2019 – 875; 2018 – 886). |
Provisions | 3.11 Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount can be made. Where the Group expects a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of discounting is material, provisions are determined by discounting the expected value of future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as an interest expense. Performance guarantees Performance guarantees are contracts that provide compensation if another party fails to perform a contractual obligation. Performance guarantees are initially recognized at their fair value, which is usually equal to the amount of fees received. This amount is amortised on a straight line basis over the life of the contract. Performance guarantees do not transfer credit risk. The risk under performance guarantee contracts is the possibility that the failure to perform the contractual obligation by another party occurs. |
Special contribution for defence of the Republic of Cyprus | 3.12 Dividend Distribution Cyprus entities that do not distribute 70% of their profits after tax, as defined by the relevant tax law, within two years after the end of the relevant tax year, are deemed to have distributed as dividends 70% of these profits. A special contribution for the defence fund of the Republic of Cyprus is levied at the 17% rate for 2018, 2019, 2020 and thereafter will be payable on such deemed dividends distribution. Profits that are attributable to shareholders who are not tax resident of Cyprus and own shares in the Company either directly and/or indirectly at the end of two years from the end of the tax year to which the profits relate, are exempted. The amount of deemed distribution is reduced by any actual dividends paid out of the profits of the relevant year at any time. This special contribution for defence is payable by the Company for the account of the shareholders. The Company’s ultimate shareholder as of December 31, 2020 is non-Cypriot tax resident and as such the Cypriot deemed dividend distribution rules are not applicable. Dividend income Dividends received from a non-resident (foreign) company are exempt from the levy of defence contribution if either the dividend paying company derives at least 50% of its income directly or indirectly from activities which do not lead to investment income (“active versus passive investment income test” is met) or the foreign tax burden on the profit to be distributed as dividend has not been substantially lower than the Cypriot corporate income tax rate (i.e. lower than 6.25%) at the level of the dividend paying company (“effective minimum foreign tax test” is met). The Company has not been subject to defence tax on dividends received from abroad as the dividend paying entities are engaged in other than investing activities. |
Income taxes | 3.13 Current income tax Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Current income tax relating to items recognized in other comprehensive income is recognized in other comprehensive income. Deferred income tax Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously. A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. |
Revenue from contracts with customers and transaction cost recognition | 3.14 Revenue from contracts with customers is recognized when control of the services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. The Group has generally concluded that it is the principal in its revenue arrangements because it typically controls the services before transferring them to the customer. Revenues and related cost of revenue from services are recognized in the period when services are rendered, regardless of when payment is made. All performance obligations are either satisfied at a point of time or over time. In the former case they represent a separate instantaneous service, in the latter – a series of distinct services that are substantially the same and that have the same pattern of transfer to the customers. Such performance obligations are invoiced at least monthly. Progress of performance obligations satisfied over time is measured by the output method. The Group recognizes the majority of its revenue at a point of time. Contract price is allocated separately to each performance obligation. There are generally no variable amounts affecting consideration at the moment such consideration is recognized as revenue. In the rare cases when the variability exists, the Group makes estimate of the amount to be recognized basing on appropriate budgets and models. Consideration from customers does not have any non-cash component. Consideration payable to a customer is accounted for as a reduction of the transaction price and, therefore, a reduction of revenue. Consideration from customers is normally received within a few months and never in more than a year. Consequently, the Group believes it contains no significant financing component. Within some components of its business, the Group pays remuneration to its employees and third parties for attracting customers. The costs which are incremental to acquisition of new customers are further analysed for recoverability. If this expenditure is expected to be reimbursed by future income, it is capitalized as costs to obtain a contract and depreciated during the contract term. Payment processing fee revenues and related transaction costs Payment processing fee revenues include the following types: - fees for processing of consumer payment (consumer fee and merchant fee), - conversion fees. The Group earns a fee for processing payments initiated by the individuals (“consumers”) to pay to merchants and service providers (“merchants”) or transfer money to other individuals. Payment processing fees are earned from consumers or merchants, or both. Consumers can make payments to various merchants through kiosks or a network of agents and bank-participants of payment system or through the Group’s website or applications using a unique user login and password (e-payments). When a consumer payment is processed, the Group may incur transaction costs to acquire payments payable to agents, bank-participants, mobile operators, international payment systems and other parties. The payment processing fee revenue and related receivable, as well as the transaction cost and the related payable, are recognized at the point when merchants or individuals accept payments from consumers in the gross amount, including fees payable for payment acquisition. Payment processing fees and transaction costs are reported gross. Any fees from agents and other service providers are recorded as reduction of transactions costs unless the fee relates to distinct service rendered by the Group. The Group generates revenue from the foreign currency conversion when payments are made in currencies different from the country of the consumer, mainly Russia. The Group recognizes the related revenues at the time of conversion in the amount of conversion commission representing the difference between the current Russian or relevant country Central Bank foreign currency exchange rate and the foreign currency exchange rate charged by the Group’s processing system. Cash and settlement service fees The Group charges a fee for managing current bank accounts and deposits of individuals and legal entities, including guarantee deposits from agents placed with the bank to cover consumer payments they accept. Related revenue is recorded as services are rendered or as transactions are processed. Installment cards related fees Installment cards related fees include revenues from commissions charged for consumer financial services. Other revenues Other revenues include revenues from commissions charged for platform and marketing services, commissions for issuing guaranties and some other minor activities. Loyalty program The Group’s business units that engaged in banking services to retail customers have different loyalty programs, which allows customers to accumulate loyalty points that are accrued as a percentage of purchases made using bank cards and can be used to reimburse future purchases. Revenue is therefore decreased by the nominal value of points awarded to customers during the period multiplied by the probability of their subsequent realization. |
Recognition of interest income and interest expense | 3.15. For all financial instruments measured at amortized cost, interest bearing financial assets classified as available for sale and financial instruments designated at fair value through profit or loss, interest income or expense is recorded using the EIR method. The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees and costs that are an integral part of the EIR of the financial instrument. The Group calculates interest income by applying the EIR to the gross carrying amount of financial assets other than credit-impaired assets. When a financial asset becomes credit-impaired and is, therefore, regarded as ‘Stage 3’, the Group calculates interest income by applying the effective interest rate to the net amortised cost of the financial asset. If the financial assets restore and is no longer credit-impaired, the Group reverts to calculating interest income on a gross basis. Interest income from bank loans and short-term and long-term investments performed as part of the Group’s treasury function is classified as part of revenues, Interest income derived from loans issued to various third and related parties as part of other arrangements is classified as interest income. All interest received from loans and investments is shown as cash inflows from operating activity in the consolidated statement of cash flows. Interest expense from bank borrowings intended to attract funds for reinvestment is classified as part of cost of revenue. Interest expense derived from borrowings attracted from various third parties as part of other arrangements is classified as interest expense not as part of cost of revenue. All interest paid on borrowings is shown as cash outflows from operating activity in the consolidated statement of cash flows. |
Share-based payments | 3.16 Employees of the Group receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions). The cost of equity-settled transactions is recognized, together with a corresponding increase in other reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The statement of comprehensive income expense or credit for a period represents the movement in cumulative expense recognized as of the beginning and end of that period and is recognized in compensation to employees and other personnel expenses. No expense is recognized for awards that do not ultimately vest, except for equity-settled transactions for which vesting is conditional upon a market or non-vesting condition. These are treated as vested irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized is the expense that would have been incurred had the terms not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification. When an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense not yet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control of either the entity or the employee are not met. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in previous paragraph. The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share. Option awards outstanding for all periods presented are of the equity settled type. |
Leases | 3.17 The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Group as a lesee, applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. Lease liabilities At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term or a change in the lease payments. Right-of-use assets Right-of-use assets are recognized at an amount equal to the lease liability adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the statement of financial position immediately before the date of initial application. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. Right-of-use assets are depreciated on a straight-line basis over the expected lease term which comprises up to 10 years. Short-term leases and leases of low-value assets The Group applies the short-term lease recognition exemption to its short-term leases of office premises (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). Lease payments on short-term leases are recognized as expense on a straight-line basis over the lease term. |
Non-current assets held for sale and discontinued operations | 3.18 Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Non-current assets and disposal groups are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. In the statement of comprehensive income, income and expenses from discontinued operations are reported separately from income and expenses from continuing operations, down to the level of profit after taxes, even when the Group retains a non-controlling interest in the subsidiary after the sale. The resulting profit or loss (after taxes) is reported separately in the statement of comprehensive income. Property and equipment and intangible assets once classified as held for sale are not depreciated or amortized. |
Changes in presentation | 3.19 In 2020 the Group decided to present foreign exchange gains and losses on net basis. The change in presentation was made to make the financial statements more comparable with the industry peers and to provide fair presentation of these amounts. The effects of the restatement on the previously reported amounts in consolidated statement of comprehensive income are set out below: For the year ended December 31, 2018 For the year ended December 31, 2019 As previously As previously reported Restated reported Restated Foreign exchange gain 1,312 — 905 — Foreign exchange loss (1,049) — (1,077) — Foreign exchange gain/(loss), net — 263 — (172) |
Summary of significant accoun_2
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Summary of significant accounting policies | |
Schedule of exchange rates of Russian ruble to other currencies | Average exchange rates for Exchange rates at the year ended December 31, December 31, 2019 2020 2019 2020 US Dollar 64.7362 72.1464 61.9057 73.8757 Euro 72.5021 82.4481 69.3406 90.6824 Kazakhstan Tenge (100) 16.8972 17.4138 16.2174 17.5481 Belarussian Ruble 30.9653 29.5855 29.4257 28.6018 Moldovan Leu (10) 36.8844 41.7510 35.9917 42.9635 New Romanian Leu 15.2820 17.0333 14.4948 18.5809 |
Summary of useful lives of property and equipment | Processing servers and engineering equipment 3 - 10 years Computers and office equipment 3 - 5 years Other equipment 2 - 20 years |
Summary of useful lives of intangible assets | Customer relationships and contract rights 4 - 15 years Computer Software 3 - 10 years Bank license indefinite Trademarks and other intangible assets 3 - 11 years |
Schedule of changes in presentation | For the year ended December 31, 2018 For the year ended December 31, 2019 As previously As previously reported Restated reported Restated Foreign exchange gain 1,312 — 905 — Foreign exchange loss (1,049) — (1,077) — Foreign exchange gain/(loss), net — 263 — (172) |
Consolidated subsidiaries (Tabl
Consolidated subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Consolidated subsidiaries | |
Summary of subsidiaries and ownership interest | Ownership interest As of As of December 31, December 31, Subsidiary Main activity 2019 2020 JSC QIWI (Russia) Operation of electronic payment kiosks % 100 % QIWI Bank JSC (Russia) Maintenance of electronic payment systems and Bank operations, inc.: money transfer, consumer and SME financial services % 100 % QIWI Payments Services Provider Ltd (UAE) Operation of on-line payments % 100 % QIWI International Payment System LLC (USA) Operation of electronic payment kiosks % 100 % Qiwi Kazakhstan LP (Kazakhstan) Operation of electronic payment kiosks % 100 % JLLC OSMP BEL (Belarus) Operation of electronic payment kiosks % 51 % QIWI-M S.R.L. (Moldova) Operation of electronic payment kiosks % 51 % QIWI ROMANIA SRL (Romania) 1 Operation of electronic payment kiosks 100 % — QIWI Management Services FZ-LLC (UAE) 2 Management services 100 % — Attenium LLC (Russia) Management services % 100 % Postomatnye Tekhnologii LLC (Russia) Logistic % 100 % Future Pay LLC (Russia) Operation of on-line payments % 100 % Qiwi Blockchain Technologies LLC (Russia) Software development % 100 % QIWI Shtrikh LLC (Russia) 2 On-line cashbox production % — Factoring PLUS LLC (ex. QIWI Processing LLC (Russia) Software development % 51 % ContactPay Solution (United Kingdom) Operation of on-line payments 100 % 100 % Rocket Universe LLC (Russia) Software development 100 % 100 % Billing Online Solutions LLC (Russia) Software development 100 % 100 % Flocktory Ltd (Cyprus) Holding company % 100 % Flocktory Spain S.L. (Spain) SaaS platform for customer lifecycle management and personalization % 100 % FreeAtLast LLC (Russia) SaaS platform for customer lifecycle management and personalization % 100 % SETTE FZ-LLC (UAE) Payment Services Provider 100 % 100 % LALIRA DMCC (UAE) Payment Services Provider 100 % 100 % QIWI Finance LLC (Russia) 3 Financing management — 100 % Associate and Joint Venture QIWI Platform LLC (Russia) 4 Software development % 60 % JSC Tochka (Russia) Digital services for banks % 40 % 1 The Entity was sold during 2020 for insignificant consideration. 2 The Entities were liquidated during 2020 3 The Entity was established during 2020 4 The Group’ share in the entity was diluted during 2020 with insignificant effect for the financial statements |
Acquisitions, disposals and d_2
Acquisitions, disposals and discontinued operation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Acquisitions, disposals and discontinued operations | |
Schedule of results of the discontinued operations | The results of the discontinued operations for the years ended December 31 are presented below: Year ended December 31, 2018 Year ended December 31, 2019 Year ended December 31, 2020 Rocketbank SOVEST Total Rocketbank SOVEST Total Rocketbank SOVEST Total Revenue 180 837 1,017 1,339 2,056 3,395 1,151 1,463 2,614 Operating costs and expenses: (1,515) (3,932) (5,447) (4,790) (4,142) (8,932) (2,065) (2,290) (4,355) Cost of revenue (exclusive of items shown separately below) (443) (178) (621) (1,829) (256) (2,085) (604) (160) (764) Selling, general and administrative expenses (445) (1,821) (2,266) (1,020) (1,751) (2,771) (338) (424) (762) Personnel expenses (580) (1,410) (1,990) (1,128) (1,445) (2,573) (986) (796) (1,782) Depreciation and amortization (47) (45) (92) (214) (44) (258) (111) (54) (165) Credit loss (expense)/income — (478) (478) (8) (646) (654) 8 (788) (780) Impairment of non-current assets (Note 11) — — — (591) — (591) (34) (68) (102) Loss from operations (1,335) (3,095) (4,430) (3,451) (2,086) (5,537) (914) (827) (1,741) Loss from sale of Sovest loans’ portfolio — — — — — — — (712) (712) Foreign exchange gain and loss, net (1) — (1) — — — (25) — (25) Interest income and expenses, net — — — (36) (2) (38) (25) (6) (31) Loss before tax from discontinued operations (1,336) (3,095) (4,431) (3,487) (2,088) (5,575) (964) (1,545) (2,509) Income tax benefit 268 608 876 611 410 1,021 138 63 Net loss from discontinued operations (1,068) (2,487) (3,555) (2,876) (1,678) (4,554) (826) (1,482) (2,308) Earnings per share for discontinued operations Basic, loss from discontinued operations attributable to ordinary equity holders of the parent (58.09) (73.71) (37.07) Diluted, loss from discontinued operations attributable to ordinary equity holders of the parent (57.60) (73.14) (36.98) |
Schedule of net cash flows incurred by Rocketbank and SOVEST project | Year ended December 31, 2018 Year ended December 31, 2019 Year ended December 31, 2020 Rocketbank SOVEST Total Rocketbank SOVEST Total Rocketbank SOVEST Total Operating 11,612 (6,526) 5,086 (1,372) (3,675) (5,047) (15,415) 6,466 (8,949) Investing (64) (42) (106) (1,623) (30) (1,653) 1,282 — 1,282 Financing — — — (58) — (58) (64) (20) (84) Net cash (outflow)/inflow 11,548 (6,568) 4,980 (3,053) (3,705) (6,758) (14,197) 6,446 (7,751) |
Operating segments (Tables)
Operating segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating segments. | |
Schedule of segments' statement of comprehensive income | The segments’ statement of comprehensive income for the year ended December 31, 2020, as presented to the CODM are presented below: 2020 PS CFS RB CO Total Revenue 38,490 1,198 1,151 2,397 43,236 Segment net revenue 22,637 1,066 548 1,727 25,978 Segment profit/(loss) before tax 15,629 (997) (907) (530) 13,195 Segment net profit/(loss) 12,608 (793) (781) (730) 10,304 The segments’ statement of comprehensive income for the year ended December 31, 2019, as presented to the CODM are presented below: 2019 PS CFS RB CO Total Revenue 34,700 1,575 1,339 1,722 39,336 Segment net revenue 20,965 1,339 (490) 1,362 23,176 Segment profit/(loss) before tax 14,716 (2,484) (2,858) (1,051) 8,323 Segment net profit/(loss) 12,105 (1,981) (2,317) (1,128) 6,679 The segments’ statement of comprehensive income for the year ended December 31, 2018, as presented to the CODM are presented below: 2018 PS CFS RB CO Total Revenue 26,649 558 180 3,223 30,610 Segment net revenue 16,497 385 (263) 3,038 19,657 Segment profit/(loss) before tax 11,552 (3,281) (1,327) (1,872) 5,072 Segment net profit/(loss) 9,529 (2,618) (1,061) (1,713) 4,137 |
Schedule of segment net revenue | 2018 2019 2020 Revenue from continuing operations under IFRS 29,593 35,941 40,622 Revenue from discontinued operations under IFRS (Note 6) 1,017 3,395 2,614 Cost of revenue from continuing operations (10,332) (14,075) (16,494) Cost of revenue from discontinuing operations (Note 6) (621) (2,085) (764) Total segment net revenue, as presented to CODM 19,657 23,176 25,978 |
Schedule of reconciliation of segment profit before tax | 2018 2019 2020 Consolidated profit before tax from continuing operations under IFRS 8,932 11,954 14,365 Consolidated loss before tax from discontinued operations under IFRS (Note 6) (4,431) (5,575) (2,509) Fair value adjustments recorded on business combinations and their amortization 369 479 337 Impairment of non-current assets — 792 134 Share-based payments 635 464 43 Offering expenses — 79 71 Loss from sale of Sovest loans’ portfolio — — 712 Loss on disposal of subsidiary — — 42 Foreign exchange loss/(gain) from revaluation of cash proceeds received from secondary public offering (433) 130 — Total segment profit before tax, as presented to CODM 5,072 8,323 13,195 |
Schedule of reconciliation of segment net profit | 2018 2019 2020 Consolidated net profit from continuing operations under IFRS 7,181 9,441 11,246 Consolidated net loss from discontinued operations under IFRS (Note 6) (3,555) (4,554) (2,308) Fair value adjustments recorded on business combinations and their amortization 369 479 337 Impairment of non-current assets — 792 134 Share-based payments 635 464 43 Offering expenses — 79 71 Loss from sale of Sovest loans’ portfolio — — 712 Loss on disposal of subsidiary — — 42 Foreign exchange loss/(gain) from revaluation of cash proceeds received from secondary public offering (433) 130 – Effect from taxation of the above items (60) (152) 27 Total segment net profit, as presented to CODM 4,137 6,679 10,304 |
Schedule of revenue from external customers | 2018 2019 2020 Russia 22,693 29,485 33,283 Other CIS 1,393 1,592 1,746 EU 2,353 3,291 2,748 Other 4,171 4,968 5,459 Total revenue from continuing and discontinued operations 30,610 39,336 43,236 |
Schedule of disaggregation of revenue from contracts with customers | 2020 PS CFS RB CO Total Payment processing fees 34,326 — — — 34,326 Cash and settlement service fees 80 — 814 432 1,326 Installment cards related fees — 827 — — 827 Platform and marketing services related fees 133 — 14 662 809 Fees for guarantees issued 23 — — 417 440 Other revenue 168 — 95 34 297 Total revenue from contracts with customers 34,730 827 923 1,545 38,025 2019 PS CFS RB CO Total Payment processing fees 30,736 — — — 30,736 Cash and settlement service fees 49 — 471 883 1,403 Installment cards related fees — 1,139 — — 1,139 Platform and marketing services related fees 106 — — 51 157 Fees for guarantees issued 27 — — 94 121 Other revenue 106 — 100 122 328 Total revenue from contracts with customers 31,024 1,139 571 1,150 33,884 2018 PS CFS RB CO Total Payment processing fees 23,694 — — — 23,694 Cash and settlement service fees 64 — 37 2,916 3,017 Installment cards related fees — 359 — — 359 Platform and marketing services related fees 97 3 — — 100 Fees for guarantees issued 12 — — 13 25 Other revenue 36 — 20 86 142 Total revenue from contracts with customers 23,903 362 57 3,015 27,337 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share | |
Schedule of basic and diluted earnings per share | 2018 2019 2020 Net profit attributable to ordinary equity holders of the parent for basic earnings 3,584 4,832 8,842 Weighted average number of ordinary shares for basic earnings per share 61,202,710 61,788,024 62,251,274 Effect of share-based payments 522,116 476,420 165,196 Weighted average number of ordinary shares for diluted earnings per share 61,724,826 62,264,444 62,416,470 Earnings per share: Basic, profit attributable to ordinary equity holders of the parent 58.56 78.20 142.04 Diluted, profit attributable to ordinary equity holders of the parent 58.06 77.60 141.66 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and equipment. | |
Summary of property and equipment | Processing Construction in servers and Computers and progress (CIP) and Right of use of engineering office Other Advances for Leasehold leased assets equipment equipment equipment equipment improvements (Note 21) Total Cost Balance as of December 31, 2018 1,339 278 195 19 — — 1,831 Impact of adopting IFRS 16 — — — — — 936 936 Restated opening balance as of December 31, 2018 1,339 278 195 19 — 936 2,767 Transfer between groups (110) 3 (152) (9) 268 — — Additions 356 147 14 104 230 848 1,699 Additions from business combinations — — 3 — — 42 45 Disposals (75) (98) (7) (6) — (209) (395) Assets held for sale (341) — — — — — (341) Balance as of December 31, 2019 1,169 330 53 108 498 1,617 3,775 Transfer between groups 98 4 (4) (101) 3 — — Additions 167 61 — 18 14 263 Additions from business combinations — — — — — — — Disposals (33) (73) (5) — (62) (250) (423) Foreign currency translation 1 — — (2) — — (1) Balance as of December 31, 2020 1,402 322 44 23 453 1,630 3,874 Accumulated depreciation and impairment: Balance as of December 31, 2018 (532) (106) (119) — — — (757) Transfer between groups 96 — 128 — (224) — — Depreciation charge (246) (68) (34) — — (304) (652) Disposals 37 35 2 — — 39 113 Assets held for sale 218 — — — — — 218 Impairment (132) — — — (219) — (351) Balance as of December 31, 2019 (559) (139) (23) — (443) (265) (1,429) Transfer between groups — — — — — — — Depreciation charge (including discontinued operations) (221) (96) (8) — (46) (328) (699) Disposals 16 30 2 — 61 50 159 Impairment (Note 11) — — — — (12) — (12) Balance as of December 31, 2020 (764) (205) (29) — (440) (543) (1,981) Net book value As of December 31, 2018 807 172 76 19 — — 1,074 As of December 31, 2019 610 191 30 108 55 1,352 2,346 As of December 31, 2020 638 117 15 23 13 1,087 1,893 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets. | |
Summary of intangible assets | Advances for Customer Computer intangibles, CIP Cost: Goodwill relationships Licenses Software Trade marks and others Total Balance as of December 31, 2018 6,378 5,414 183 1,354 355 106 13,790 Additions — — — 236 — 211 447 Additions from business combinations 777 159 — 280 32 — 1,248 Transfer between groups — — — 36 — (36) — Disposals — — — (156) — (39) (195) Balance as of December 31, 2019 7,155 5,573 183 1,750 387 242 15,290 Additions 22 — — 120 — 56 198 Additions from business combinations — — — — — — — Transfer between groups — — — 95 — (95) — Disposals (93) (88) — (414) — (92) (687) Balance as of December 31, 2020 7,084 5,485 183 1,551 387 111 14,801 Accumulated Amortization: Balance as of December 31, 2018 — (2,107) — (660) (167) (10) (2,944) Amortization charge — (301) — (317) (44) (10) (672) Impairment (93) (67) — (148) (115) (18) (441) Disposals — — — 82 — 1 83 Balance as of December 31, 2019 (93) (2,475) — (1,043) (326) (37) (3,974) Amortization charge (including discontinued operations) — (300) — (216) (30) (21) (567) Impairment (Note 11) — — — (61) — (50) (111) Disposals 93 88 — 394 — 89 664 Balance as of December 31, 2020 — (2,687) — (926) (356) (19) (3,988) Net book value As of December 31, 2018 6,378 3,307 183 694 188 96 10,846 As of December 31, 2019 7,062 3,098 183 707 61 205 11,316 As of December 31, 2020 7,084 2,798 183 625 31 92 10,813 |
Impairment testing of goodwil_2
Impairment testing of goodwill and intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Impairment testing of goodwill and intangible assets | |
Summary of movements in goodwill and intangible assets with indefinite life | Goodwill Indefinite life Payment services Rocketbank Flocktory license Total As of December 31, 2018 6,285 93 — 183 6,561 Addition 51 — 726 — 777 Impairment — (93) — — (93) As of December 31, 2019 6,336 — 726 183 7,245 Addition 22 — — — 22 As of December 31, 2020 6,358 — 726 183 7,267 |
Long-term and short-term loan_2
Long-term and short-term loans issued (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Long-term and short-term loans issued | |
Schedule of long-term and short-term loans issued | As of December 31, 2020, long-term and short-term loans issued consisted of the following: Total as of Expected Net as of December 31, credit loss December 31, 2020 allowance 2020 Long-term loans Loans to legal entities 214 — 214 Total long-term loans 214 — 214 Short-term loans Loans to legal entities 5,836 (37) 5,799 Total short-term loans 5,836 (37) 5,799 The Group’s loans mainly issued in Russian rubles. As of December 31, 2019, long-term and short-term loans consisted of the following: Total as of Expected credit Net as of December 31, loss December 31, 2019 allowance 2019 Long-term loans Loans to legal entities 265 — 265 Total long-term loans 265 — 265 Short-term loans Loans to legal entities 3,467 (33) 3,434 Instalment Card Loans 8,795 (810) 7,985 Total short-term loans 12,262 (843) 11,419 |
Schedule of analysis of changes in loss allowances for loans | An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the year ended December 31, 2020, was the following: Stage 1 Stage 2 Stage 3 Total Collective Collective ECL allowance as of January 1, 2020 (229) (120) (494) (843) Changes because of financial instruments (originated or acquired)/derecognized during the reporting period (128) (211) (498) (837) Transfers between stages 140 (8) (132) — Amounts sold and written off 212 338 1,093 1,643 ECL allowance as of December 31, 2020 (5) (1) (31) (37) An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the year ended December 31, 2019, was the following: Stage 1 Stage 2 Stage 3 Total Collective Collective ECL allowance as of January 1, 2019 (216) (120) (517) (853) Changes because of financial instruments (originated or acquired)/derecognized during the reporting period (127) 7 (496) (616) Transfers between stages 114 (7) (107) — Amounts sold and written off — — 626 626 ECL allowance as of December 31, 2019 (229) (120) (494) (843) An analysis of the changes in the ECL allowances due to changes in corresponding gross carrying amounts for the year ended December 31, 2018, was the following: Stage 1 Stage 2 Stage 3 Total Collective Collective ECL allowance as of January 1, 2018 (175) (60) (194) (429) Changes because of financial instruments (originated or acquired)/derecognized during the reporting period (146) (44) (309) (499) Transfers between stages 105 (16) (89) — Amounts sold and written off — — 75 75 ECL allowance as of December 31, 2018 (216) (120) (517) (853) |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other receivables | |
Summary of trade and other receivables | As of December 31, 2020, trade and other receivables consisted of the following: Total as of Expected credit loss Net as of December 31, allowance/ Provision for December 31, 2020 impairment 2020 Cash receivable from agents 2,358 (150) 2,208 Deposits issued to merchants 4,639 (17) 4,622 Commissions receivable 135 (19) 116 Other receivables 343 (97) 246 Total financial assets 7,475 (283) 7,192 Advances issued 254 (1) 253 Total trade and other receivables 7,729 (284) 7,445 As of December 31, 2019, trade and other receivables consisted of the following: Total as of Expected credit loss Net as of December 31, allowance/ Provision December 31, 2019 for impairment 2019 Cash receivable from agents 2,947 (199) 2,748 Deposits issued to merchants 2,690 (12) 2,678 Commissions receivable 158 (21) 137 Other receivables 276 (56) 220 Total financial assets 6,071 (288) 5,783 Advances issued 380 (1) 379 Total trade and other receivables 6,451 (289) 6,162 |
Summary of analysis of changes in loss allowances for receivables | An analysis of the changes in the ECL allowances due to changes in the corresponding gross carrying amounts for the years ended December 31 was the following: 2018 2019 2020 ECL allowance as of January 1, (578) (366) (289) Changes because of financial instruments (originated or acquired)/ derecognized during the reporting period 5 (9) (57) Amounts written off 207 86 62 ECL allowance as of December 31, (366) (289) (284) |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents | |
Schedule of cash and cash equivalents | As of As of December 31, December 31, 2019 2020 Correspondent accounts with Central Bank of Russia (CBR) 3,261 3,467 Сash with banks and on hand 7,317 9,089 Short-term CBR deposits 30,500 32,800 Other short-term bank deposits 1,025 2,028 Less: Allowance for ECL (2) (2) Total cash and cash equivalents 42,101 47,382 |
Schedule of cash and cash equivalents in different currencies | As of As of December 31, 2019 December 31, 2020 Russian ruble 36,594 40,040 Euro 2,021 3,407 US Dollar 2,618 2,847 Others 868 1,088 Total 42,101 47,382 |
Other current assets and othe_2
Other current assets and other current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other current assets and other current liabilities | |
Summary of other current assets | As of As of December 31, December 31, 2019 2020 Reserves at CBR* 611 736 Total other financial assets 611 736 Prepaid expenses 230 259 Other 76 207 Total other current assets 917 1,202 * Banks are currently required to post mandatory reserves with the CBR to be held in non-interest bearing accounts. Starting from July 1, 2019, such mandatory reserves established by the CBR constitute 4.75% for liabilities in RUR and 8% for liabilities in foreign currency. The amount is excluded from cash and cash equivalents for the purposes of cash flow statement and does not have a repayment date. |
Summary of other current liabilities | As of As of December 31, December 31, 2019 2020 Contract liability related to loyalty programs 607 66 Contract liability related to guarantees issued 199 521 Other 96 60 Total other current liabilities |
Share capital, additional pai_2
Share capital, additional paid-in capital, share premium and other reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share capital, additional paid-in capital, share premium and other reserves | |
Summary of authorised, issued and fully paid shares | As of As of As of December 31, December 31, December 31, Authorised shares 2018 2019 2020 Thousands Thousands Thousands Ordinary Class A shares 131,333 129,583 127,914 Ordinary Class B shares 99,517 101,267 102,936 Total authorised shares 230,850 230,850 230,850 As of As of As of December 31, December 31, December 31, Issued and fully paid shares 2018 2019 2020 Thousands Thousands Thousands Ordinary Class A shares 13,833 12,083 10,414 Ordinary Class B shares 48,880 50,630 52,299 Total issued and fully paid shares 62,713 62,713 62,713 |
Summary of movement in shares outstanding | Number Ordinary Ordinary of outstanding Class A shares Class B shares shares Thousands Thousands Thousands As of December 31, 2018 13,833 47,619 61,452 Transfer between classes (1,750) 1,750 — Increase of share capital due to exercise of options by employees during the year — 641 641 As of December 31, 2019 12,083 50,010 62,093 Transfer between classes (1,669) 1,669 — Increase of share capital due to exercise of options by employees during the year — 286 286 As of December 31, 2020 10,414 51,965 62,379 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt | |
Schedule of debt | As of December 31,2020 and December 31, 2019, Group’s debt consisted of the following: As of As of Credit limit December 31, December 31, (RUB) Interest rate Maturity 2019 2020 Current interest - bearing debt Bank’ revolving credit facility 460 Up to 10%* December 31, 2021 — — Non-current interest - bearing debt Bank’ revolving credit facility 1,000 8.5%** October 7, 2021** 765 604 Bank’ revolving credit facility 1,000 8.5%** December 22, 2021** 780 945 Bonds issued 5,000 October 10, 2023 — 5,014 Total debt 1,545 6,563 Including short-term portion — 1,640 * the agreement stipulated the right of a lender to increase the interest rate in case the covenants are violated. ** the agreement stipulated the right of a lender to increase the interest rate and demand of early repayment in case the covenants are violated. The Covenants are violated as of December 31, 2020. |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other payables | |
Summary of trade and other payables | As of As of December 31, December 31, 2019 2020 Payables to merchants 12,116 12,801 Money remittances and e-wallets accounts payable 6,515 5,725 Deposits received from agents 6,246 8,357 Commissions payable 503 465 Accrued personnel expenses and related taxes 883 1,386 Provision for undrawn credit commitments (Note 27) 98 — Other payables 934 794 Total trade and other payables 27,295 29,528 |
Customer accounts and amounts_2
Customer accounts and amounts due to banks (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Customer accounts and amounts due to banks | |
Summary of customer accounts and amounts due to banks | As of As of December 31, December 31, 2019 2020 Individuals’ current/demand accounts 11,553 1,539 Legal entities’ current/demand accounts 4,599 6,995 Term deposits 3,251 1,156 Due to banks 2,560 2,647 Total customer accounts and amounts due to banks 21,963 12,337 Including long-term deposits 444 36 |
Investment in associates (Table
Investment in associates (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment in associates | |
Schedule of associate financial information | The following table illustrates summarized financial information of the Group’s investment in JSC Tochka associate: As of As of December 31, December 31, 2019 2020 Associates’ statement of financial position: Non-current assets 1,199 1,437 Current assets 2,019 3,729 including cash and cash equivalents 995 2,631 Non-current financial liabilities (337) (263) Current liabilities (397) (1,270) including financial liabilities (314) (959) Net assets 2,484 3,633 Carrying amount of investment in associates (45%) of net assets 1,118 1,635 Associate’ revenue and net income for the years ended December 31 was as follows: 2018 2019 2020 Revenue 4 Cost of revenues (3) (289) (453) Other income and expenses, net (85) (4,565) (5,752) including personnel expenses (1) (2,147) (2,965) including depreciation and amortization (1) (129) (297) Total net profit/(loss) (84) 1,492 Group’s share (45%) of total net profit/(loss) (38) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Summary of changes in right-of-use assets and lease liabilities | The change in the balances of Right-of-use assets and Lease liabilities the year ended December 31, 2020 was as follows: Right-of-use assets Lease liabilities Office buildings As of January 1, 2020 1,352 1,357 Additions 263 263 Derecognition (200) (204) Depreciation (328) — Interest expense — 116 Payments — (416) As of December 31, 2020 1,087 1,116 Including short-term portion 354 The change in the balances of Right-of-use assets and Lease liabilities the year ended December 31, 2019 was as follows: Right-of-use assets Lease Office buildings liabilities As of January 1, 2019 936 1,068 Additions 891 851 Derecognition (171) (175) Depreciation (304) — Interest expense — 95 Payments — (482) As of December 31, 2019 1,352 1,357 Including short-term portion 340 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue | |
Schedule of other revenue | 2018 2019 2020 Cash and settlement service fees 2,980 932 512 Platform and marketing services related fees 98 157 794 Fees for guarantees issued 25 121 440 Other revenue 122 228 208 Total other revenue 3,225 1,438 1,954 |
Schedule of interest income, net | 2018 2019 2020 Interest revenue calculated using the effective interest rate (1,255) (1,961) (2,390) Interest expense classified as part of cost of revenue 26 47 288 Interest income and expenses from non-banking loans, net, classified separately in the consolidated statement of comprehensive income (17) 18 68 Interest income and expenses related to discontinued operations (536) (1,005) (659) Interest income, net, for the purposes of consolidated cash flow statement (1,782) (2,901) (2,693) |
Cost of revenue (Tables)
Cost of revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cost of revenue | |
Schedule of cost of revenue | 2018 2019 2020 Transaction costs 9,324 12,633 14,777 Cost of cash and settlement service fees 105 164 171 Interest expense 26 47 288 Other expenses 877 1,231 1,258 Total cost of revenue 10,332 14,075 16,494 |
Selling, general and administ_2
Selling, general and administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Selling, general and administrative expenses | |
Summary of selling, general and administrative expenses | 2018 2019 2020 Advertising, client acquisition and related expenses 1,176 562 301 Tax expenses, except income and payroll related taxes 427 367 316 Advisory and audit services 478 537 611 Rent of premises 461 102 113 Expenses related to Tochka platform services — 538 382 IT related services 300 325 346 Offering expenses — 79 71 Other expenses 991 932 593 Total selling, general and administrative expenses 3,833 3,442 2,733 |
Dividends paid and proposed (Ta
Dividends paid and proposed (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Dividends paid and proposed | |
Schedule of dividends paid and proposed | 2018 2019 2020 Proposed, declared and approved during the year: 2020: Final dividend for 2019: U.S.$ 13,667,632 or U.S.$ 0.22 per share, Interim dividend for 2020: U.S.$ 50,489,929 or U.S.$ 0.81 per share 4,797 2019: Interim dividend for 2019: U.S.$ 51,969,316 or U.S.$ 0.84 per share 3,366 2018: nil — Paid during the period*: 2020: Final dividend for 2019: U.S.$ 13,667,632 or U.S.$ 0.22 per share, Interim dividend for 2020: U.S.$ 50,489,929 or U.S.$ 0.81 per share 4,804 2019: Interim dividend for 2019: U.S.$ 51,969,316 or U.S.$ 0.84 per share 3,392 2018: nil — Proposed for approval (not recognized as a liability as of December 31): 2020: Final dividend for 2020: U.S.$ 19,337,438 or U.S.$ 0.31 per share 1,411 2019: Final dividend for 2019: U.S.$ 13,660,424 or U.S.$ 0.22 per share 1,011 2018: nil — Dividends payable as of December 31 — — — * The difference between paid and declared dividends represents foreign exchange movement |
Income tax (Tables)
Income tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income tax | |
Summary of deferred income tax | Deferred income tax assets and liabilities as of December 31, 2020 and 2019, relate to the following: Consolidated statement of Consolidated statement of financial position as of comprehensive income for the December 31 year ended 2019 2020 2019 2020 Intangible assets (638) (606) 90 32 Trade and other payables 272 238 91 (34) Trade and other receivables 58 25 27 (33) Loans issued 56 10 (13) (46) Lease obligations 287 222 287 (65) Property and equipment (261) (189) (238) 72 Taxes on unremitted earnings (480) (680) (202) (200) Other 174 28 86 (146) Net deferred income tax asset/ (liability) (532) (952) 128 (420) including: Deferred tax asset 217 209 Deferred tax liability (749) (1,161) Deferred tax assets and liabilities are not offset because they do not relate to income taxes levied by the same tax authority on the same taxable entity. Reconciliation of deferred income tax asset/(liability), net: 2018 2019 2020 Deferred income tax asset/(liability), net as of January 1 (581) (586) (532) Impact of adopting new accounting policies 49 — — Effect of acquisitions of subsidiaries 3 (74) — Deferred tax benefit/(expense) (57) 128 (420) Deferred income tax asset/(liability), net as of December 31 (586) (532) (952) |
Summary of income tax expense | 2018 2019 2020 Total tax expense Current income tax expense (818) (1,620) (2,498) Deferred tax benefit/(expense) (57) 128 (420) Income tax expense for the year (875) (1,492) (2,918) |
Schedule of reconciliation of theoretical and actual income tax expense | 2018 2019 2020 Profit before tax from continuing operations 8,932 11,954 14,365 Loss before tax from a discontinued operations (4,431) (5,575) (2,509) Accounting profit before tax 4,501 6,379 11,856 Theoretical income tax expense at the domestic rate in each individual jurisdiction (479) (824) (2,043) (Increase)/decrease resulting from the tax effect of: Non-taxable income 70 23 216 Non-deductible expenses (388) (387) (675) Income tax associated with earnings of foreign subsidiaries (70) (202) (333) Unrecognized deferred tax assets (8) (102) (83) Total income tax expense (875) (1,492) (2,918) Income tax attributable to a continuing operations (1,751) (2,513) (3,119) Income tax attributable to a discontinued operations 876 1,021 201 |
Commitments, contingencies an_2
Commitments, contingencies and operating risks (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments, contingencies and operating risks | |
Summary of analysis of changes in loss allowances for commitments | 2018 2019 2020 ECL allowance as of January 1, (111) (84) (98) Changes because of financial instruments (originated or acquired)/derecognized during the reporting period 27 (14) 22 Amounts written off — — 76 ECL allowance as of December 31, (84) (98) — |
Balances and transactions wit_2
Balances and transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Balances and transactions with related parties | |
Summary of balances and transactions with related parties | For the year ended December 31, 2020 As of December 31, 2020 Purchases/ Amounts Amounts Sales to/ expenses owed by owed to income from from related related related related parties parties parties parties Associates 3 (525) 170 (116) Key management personnel — (422) — (142) Other related parties 9 (21) 8 (9) For the year ended December 31, 2019 As of December 31, 2019 Purchases/ Amounts Amounts Sales to/ expenses owed by owed to income from from related related related related parties parties parties parties Associates 121 (568) — (74) Key management personnel 1 (288) — (83) Other related parties 4 (27) 5 (1) |
Risk management (Tables)
Risk management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risk management | |
Summary of sensitivity to reasonably possible changes in US Dollar and Euro exchange rates against Ruble | Effect on profit before tax change in US Dollar Gain/(loss) 2020 +10% 192 -10% (192) 2019 +13% 147 -11% (124) Effect on profit before tax change in Euro Gain/(loss) 2020 +10% (2) - 10% 2 2019 +13% 192 -11% (162) |
Summary of maturity profile of financial liabilities | Due: More than a Total On demand Within a year year Debt (Note 17) 6,640 1,549 91 5,000 Lease liabilities (Note 21) 1,116 — 354 762 Trade and other payables (Note 18) 29,528 29,528 — — Customer accounts and amounts due to banks (Note 19) 12,337 11,181 1,120 36 Total as of December 31, 2020 49,621 1,565 5,798 Due: More than a Total On demand Within a year year Debt (Note 17) 1,545 — — 1,545 Lease liabilities (Note 21) 1,357 — 340 1,017 Trade and other payables (Note 18) 27,295 27,295 — — Customer accounts and amounts due to banks (Note 19) 21,963 18,712 2,807 444 Total as of December 31, 2019 52,160 46,007 3,147 3,006 |
Summary of credit risk exposure using provision matrix | December 31, 2020 Days past due Current and <30 days 30-60 days 61-90 days >91 days Total Expected credit loss rate 0.13 % 1 % 69 % 92 % Exposure at default 6,092 1,035 230 118 7,475 Expected credit loss (8) (7) (159) (109) (283) December 31, 2019 Days past due Current and <30 days 30-60 days 61-90 days >91 days Total Expected credit loss rate 0.10 % 1 % 57 % 94 % Exposure at default 5,143 490 362 76 6,071 Expected credit loss (6) (3) (208) (71) (288) |
Summary of largest counterparties balances | Trade and other receivables As of December 31, As of December 31, 2019 2020 Concentration of credit risks by main counterparties, % from total amount Top 5 counterparties 43 % 54 % Others 57 % 46 % |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial instruments | |
Summary of fair values of financial instruments | As of December 31, 2019 As of December 31, 2020 Carrying Fair Carrying Fair amount value amount value Financial assets Debt securities and deposits AC 3,825 3,913 6,383 6,476 Debt securities and deposits FVOCI 1,294 1,294 — — Long-term loans AC 249 249 196 196 Long-term loans FVPL 16 16 18 18 Total financial assets 5,384 5,472 6,597 6,690 Financial liabilities Bonds issued AC — — 5,014 5,134 |
Summary of fair value measurement hierarchy of financial instruments | The following table provides the fair value measurement hierarchy of the Group’s financial instruments to be accounted or disclosed at fair value: Fair value measurement using Quoted prices Significant Significant in active observable unobservable markets inputs inputs Date of valuation Total (Level 1) (Level 2) (Level 3) Assets accounted at fair value through profit or loss Long-term loans December 31, 2020 18 — — 18 Assets for which fair values are disclosed Debt securities and deposits December 31, 2020 6,476 6,476 — — Long-term loans December 31, 2020 196 — — 196 Liabilities for which fair values are disclosed Bonds issued December 31, 2020 5,134 5,134 — — Assets accounted at fair value through profit or loss Long-term loans December 31, 2019 16 — — 16 Assets accounted at fair value through other comprehensive income Debt securities and deposits December 31, 2019 1,294 1,294 — — Assets for which fair values are disclosed Debt securities and deposits December 31, 2019 3,913 3,913 — — Long-term loans December 31, 2019 249 — — 249 |
Share-based payments (Tables)
Share-based payments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based payments | |
Schedule of option plans | 2015 Restricted Stock Unit Plan 2019 Employee Stock (RSU Plan) Option Plan (2019 ESOP) Adoption date July, 2015 June, 2019 Type of shares class B shares class B shares Number of options or RSUs reserved Up to 2,100,000 shares Up to 3,100,000 shares Exercise price Granted during: Granted during: Year 2016: n/a Year 2019: U.S. $ 16.75 Year 2017: n/a Year 2020: U.S. $ 13.70-17.19 Year 2018: n/a Year 2019: n/a Exercise basis Shares Shares Expiration date December 2022 December 2026 Vesting period Three vesting during up to 2 years Two vesting during up to 4 years Other major terms - The units are not transferrable - The units are not transferrable - All other terms of the units under 2015 RSU Plan are to be determined by the Company's BOD or the CEO, if so resolved by the BOD, acting as administrator of the Plan -The Compensation Committee of the Board, acting as Administrator of the Plan, shall have the authority to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan as it deems advisable. |
Schedule of changes in outstanding options | Forfeited As of Granted and expired Exercised As of December 31, during the during the during the December 31, 2019 period period period 2020 2012 ESOP 1,153,775 — (1,018,742) (135,033) — 2015 RSU Plan 365,723 — (38,696) (254,357) 72,670 2019 ESOP 930,000 700,000 — — 1,630,000 Total 2,449,498 700,000 (1,057,438) (389,390) 1,702,670 |
Schedule of valuations of share-based payments | Weighted average Number Weighted fair value of Risk-free Expec- average per option/ Option plan/ options/ Dividend Volatility, interest ted term, share price RSU (U.S. Valuation Grant date RSUs yield, % % rate, % years (U.S. $) $) method 2012 ESOP 4,128,521 0-5.03% 28%-49.85% 0.29%-3.85% 2-4 28.10 7.14 Black-Scholes-Merton 2015 RSU Plan 2,035,808 0-5.70% 40.65%-64.02% 2.89%-4.34% 0-2 15.26 14.56 Binominal 2019 ESOP 1,980,000 2.73%-8.76% 41.12%-65.47% 0.24%-1.94% 0-4 18.45 5.57 Black-Scholes-Merton |
Summary of significant accoun_3
Summary of significant accounting policies - Foreign currency translation (Details) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2020₽ / $ | Dec. 31, 2020₽ / $₽ / | Dec. 31, 2020₽ / $₽ / MDL | Dec. 31, 2020₽ / $₽ / ₸ | Dec. 31, 2020₽ / $₽ / € | Dec. 31, 2020₽ / $₽ / Br | Dec. 31, 2019₽ / $ | Dec. 31, 2019₽ / $₽ / | Dec. 31, 2019₽ / $₽ / MDL | Dec. 31, 2019₽ / $₽ / ₸ | Dec. 31, 2019₽ / $₽ / € | Dec. 31, 2019₽ / $₽ / Br | Dec. 31, 2020₽ / | Dec. 31, 2020₽ / MDL | Dec. 31, 2020₽ / ₸ | Dec. 31, 2020₽ / € | Dec. 31, 2020₽ / Br | Dec. 31, 2019₽ / | Dec. 31, 2019₽ / MDL | Dec. 31, 2019₽ / ₸ | Dec. 31, 2019₽ / € | Dec. 31, 2019₽ / Br | |
Summary of significant accounting policies | ||||||||||||||||||||||
Average exchange rate | 72.1464 | 17.0333 | 4.17510 | 0.174138 | 82.4481 | 29.5855 | 64.7362 | 15.2820 | 3.68844 | 0.168972 | 72.5021 | 30.9653 | ||||||||||
Exchange rates | 73.8757 | 73.8757 | 73.8757 | 73.8757 | 73.8757 | 73.8757 | 61.9057 | 61.9057 | 61.9057 | 61.9057 | 61.9057 | 61.9057 | 18.5809 | 4.29635 | 0.175481 | 90.6824 | 28.6018 | 14.4948 | 3.59917 | 0.162174 | 69.3406 | 29.4257 |
Summary of significant accoun_4
Summary of significant accounting policies - Property and equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | Processing servers and engineering equipment | |
Summary of significant accounting policies | |
Estimated useful lives | 3 years |
Minimum | Computers and office equipment | |
Summary of significant accounting policies | |
Estimated useful lives | 3 years |
Minimum | Other equipment | |
Summary of significant accounting policies | |
Estimated useful lives | 2 years |
Maximum | Processing servers and engineering equipment | |
Summary of significant accounting policies | |
Estimated useful lives | 10 years |
Maximum | Computers and office equipment | |
Summary of significant accounting policies | |
Estimated useful lives | 5 years |
Maximum | Other equipment | |
Summary of significant accounting policies | |
Estimated useful lives | 20 years |
Summary of significant accoun_5
Summary of significant accounting policies - Intangible assets (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Bank license (indefinite life license) | |
Summary of significant accounting policies | |
Amortization period of intangible assets | indefinite |
Minimum | Software and other intangible assets | |
Summary of significant accounting policies | |
Amortization period of intangible assets | 3 years |
Minimum | Customer relationship and contract rights | |
Summary of significant accounting policies | |
Amortization period of intangible assets | 4 years |
Minimum | Computer software | |
Summary of significant accounting policies | |
Amortization period of intangible assets | 3 years |
Minimum | Trademarks and other intangible assets | |
Summary of significant accounting policies | |
Amortization period of intangible assets | 3 years |
Maximum | Software and other intangible assets | |
Summary of significant accounting policies | |
Amortization period of intangible assets | 5 years |
Maximum | Customer relationship and contract rights | |
Summary of significant accounting policies | |
Amortization period of intangible assets | 15 years |
Maximum | Computer software | |
Summary of significant accounting policies | |
Amortization period of intangible assets | 10 years |
Maximum | Trademarks and other intangible assets | |
Summary of significant accounting policies | |
Amortization period of intangible assets | 11 years |
Summary of significant accoun_6
Summary of significant accounting policies - Employee benefits (Details) - Russia - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of significant accounting policies | |||
Defined contributions to pension funds | ₽ 861 | ₽ 875 | ₽ 886 |
Maximum | |||
Summary of significant accounting policies | |||
Percentage of defined contributions to pension funds | 30.00% | 30.00% | 30.00% |
Minimum | |||
Summary of significant accounting policies | |||
Percentage of defined contributions to pension funds | 15.00% | 15.00% | 15.00% |
Summary of significant accoun_7
Summary of significant accounting policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Maximum | |
Summary of significant accounting policies | |
Depreciation period of right-of-use assets | 10 years |
Summary of significant accoun_8
Summary of significant accounting policies - Changes in presentation (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restatement | |||
Foreign exchange gain/(loss), net | ₽ (199) | ₽ (172) | ₽ 263 |
As previously reported | |||
Restatement | |||
Foreign exchange gain | 905 | 1,312 | |
Foreign exchange loss | ₽ (1,077) | ₽ (1,049) |
Consolidated subsidiaries (Deta
Consolidated subsidiaries (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
JSC Tochka | ||
Group structure | ||
Ownership interest in associate | 40.00% | 40.00% |
QIWI Platform LLC (Russia) | ||
Group structure | ||
Ownership interest in joint ventures | 60.00% | 100.00% |
JSC QIWI (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI Bank JSC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI Payments Services Provider Ltd (UAE) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI International Payment System LLC (USA) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Qiwi Kazakhstan LP (Kazakhstan) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
JLLC OSMP BEL (Belarus) | ||
Group structure | ||
Ownership interest in subsidiaries | 51.00% | 51.00% |
QIWI-M S.R.L. (Moldova) | ||
Group structure | ||
Ownership interest in subsidiaries | 51.00% | 51.00% |
QIWI ROMANIA SRL | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | |
QIWI Management Services FZ-LLC (UAE) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | |
Attenium LLC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Postomatnye Tekhnologii LLC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Future Pay LLC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Qiwi Blockchain Technologies LLC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI Shtrikh LLC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 51.00% | |
Factoring PLUS LLC (ex. QIWI Processing LLC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 51.00% | 100.00% |
ContactPay Solution (United Kingdom) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Rocket Universe LLC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Billing Online Solutions LLC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
Flocktory Ltd (Cyprus) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 99.00% |
Flocktory Spain S.L. (Spain) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 99.00% |
FreeAtLast LLC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 99.00% |
SETTE FZ-LLC (UAE) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
LALIRA DMCC (UAE) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% | 100.00% |
QIWI Finance LLC (Russia) | ||
Group structure | ||
Ownership interest in subsidiaries | 100.00% |
Acquisitions, disposals and d_3
Acquisitions, disposals and discontinued operations - SOVEST disposal (Details) - RUB (₽) ₽ in Millions | 1 Months Ended | 12 Months Ended |
Jul. 31, 2020 | Dec. 31, 2020 | |
Discontinued operations | ||
Discontinued operations | ||
Pre-tax loss on disposal | ₽ (712) | |
SOVEST | ||
Discontinued operations | ||
Proceeds from sale of assets | ₽ 6,000 | |
Pre-tax loss on disposal | ₽ (712) | ₽ (712) |
Acquisitions, disposals and d_4
Acquisitions, disposals and discontinued operations - SOVEST group financial services operating segment (Details) - RUB (₽) ₽ / shares in Units, ₽ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discontinued operations | ||||
Revenue | ₽ 40,622 | ₽ 35,941 | ₽ 29,593 | |
Operating costs and expenses: | (26,558) | (23,964) | (20,714) | |
Cost of revenue (exclusive of items shown separately below) | (16,494) | (14,075) | (10,332) | |
Selling, general and administrative expenses | (2,733) | (3,442) | (3,833) | |
Personnel expenses | (6,108) | (5,192) | (5,758) | |
Depreciation and amortization | (1,101) | (1,066) | (772) | |
Credit loss (expense)/income | (90) | 12 | 4 | |
Impairment of non-current assets (Note 11) | (32) | (201) | (23) | |
Profit (loss) from operations | 14,064 | 11,977 | 8,879 | |
Foreign exchange gain/(loss), net | (199) | (172) | 263 | |
Interest income and expenses, net | (68) | (18) | 17 | |
Profit (loss) before tax | 14,365 | 11,954 | 8,932 | |
Net loss from discontinued operations | (2,308) | (4,554) | (3,555) | |
Discontinued operations | ||||
Discontinued operations | ||||
Revenue | 2,614 | 3,395 | 1,017 | |
Operating costs and expenses: | (4,355) | (8,932) | (5,447) | |
Cost of revenue (exclusive of items shown separately below) | (764) | (2,085) | (621) | |
Selling, general and administrative expenses | (762) | (2,771) | (2,266) | |
Personnel expenses | (1,782) | (2,573) | (1,990) | |
Depreciation and amortization | (165) | (258) | (92) | |
Credit loss (expense)/income | (780) | (654) | (478) | |
Impairment of non-current assets (Note 11) | (102) | (591) | ||
Profit (loss) from operations | (1,741) | (5,537) | (4,430) | |
Loss from sale of Sovest loans' portfolio | (712) | |||
Foreign exchange gain/(loss), net | (25) | (1) | ||
Interest income and expenses, net | (31) | (38) | ||
Profit (loss) before tax | (2,509) | (5,575) | (4,431) | |
Income tax benefit | 201 | 1,021 | 876 | |
Net loss from discontinued operations | ₽ (2,308) | ₽ (4,554) | ₽ (3,555) | |
Earnings per share for discontinued operations | ||||
Basic, loss from discontinued operations attributable to ordinary equity holders of the parent | ₽ (37.07) | ₽ (73.71) | ₽ (58.09) | |
Diluted, loss from discontinued operations attributable to ordinary equity holders of the parent | ₽ (36.98) | ₽ (73.14) | ₽ (57.60) | |
RB | ||||
Discontinued operations | ||||
Revenue | ₽ 1,151 | ₽ 1,339 | ₽ 180 | |
Operating costs and expenses: | (2,065) | (4,790) | (1,515) | |
Cost of revenue (exclusive of items shown separately below) | (604) | (1,829) | (443) | |
Selling, general and administrative expenses | (338) | (1,020) | (445) | |
Personnel expenses | (986) | (1,128) | (580) | |
Depreciation and amortization | (111) | (214) | (47) | |
Credit loss (expense)/income | 8 | (8) | ||
Impairment of non-current assets (Note 11) | (34) | (591) | ||
Profit (loss) from operations | (914) | (3,451) | (1,335) | |
Foreign exchange gain/(loss), net | (25) | (1) | ||
Interest income and expenses, net | (25) | (36) | ||
Profit (loss) before tax | (964) | (3,487) | (1,336) | |
Income tax benefit | 138 | 611 | 268 | |
Net loss from discontinued operations | (826) | (2,876) | (1,068) | |
SOVEST | ||||
Discontinued operations | ||||
Revenue | 1,463 | 2,056 | 837 | |
Operating costs and expenses: | (2,290) | (4,142) | (3,932) | |
Cost of revenue (exclusive of items shown separately below) | (160) | (256) | (178) | |
Selling, general and administrative expenses | (424) | (1,751) | (1,821) | |
Personnel expenses | (796) | (1,445) | (1,410) | |
Depreciation and amortization | (54) | (44) | (45) | |
Credit loss (expense)/income | (788) | (646) | (478) | |
Impairment of non-current assets (Note 11) | (68) | |||
Profit (loss) from operations | (827) | (2,086) | (3,095) | |
Loss from sale of Sovest loans' portfolio | ₽ (712) | (712) | ||
Interest income and expenses, net | (6) | (2) | ||
Profit (loss) before tax | (1,545) | (2,088) | (3,095) | |
Income tax benefit | 63 | 410 | 608 | |
Net loss from discontinued operations | ₽ (1,482) | ₽ (1,678) | ₽ (2,487) |
Acquisitions, disposals and d_5
Acquisitions, disposals and discontinued operations - Rocketbank and SOVEST project net cash flow (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Operating | ₽ (8,949) | ₽ (5,047) | ₽ 5,086 |
Investing | 1,282 | (1,653) | (106) |
Financing | (84) | (58) | |
Net cash (outflow)/inflow | (7,751) | (6,758) | 4,980 |
RB | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Operating | (15,415) | (1,372) | 11,612 |
Investing | 1,282 | (1,623) | (64) |
Financing | (64) | (58) | |
Net cash (outflow)/inflow | (14,197) | (3,053) | 11,548 |
SOVEST | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Operating | 6,466 | (3,675) | (6,526) |
Investing | (30) | (42) | |
Financing | (20) | ||
Net cash (outflow)/inflow | ₽ 6,446 | ₽ (3,705) | ₽ (6,568) |
Operating segments (Details)
Operating segments (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments | |||
Revenue | ₽ 40,622 | ₽ 35,941 | ₽ 29,593 |
Profit (loss) before tax | 14,365 | 11,954 | 8,932 |
Profit (loss) from continuing operations | 11,246 | 9,441 | 7,181 |
Net profit/(loss) | 8,938 | 4,887 | 3,626 |
Discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 2,614 | 3,395 | 1,017 |
Profit (loss) before tax | (2,509) | (5,575) | (4,431) |
Net profit/(loss) | (2,308) | (4,554) | (3,555) |
Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 43,236 | 39,336 | 30,610 |
Profit (loss) before tax | 11,856 | 6,379 | 4,501 |
PS | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 38,490 | 34,700 | 26,649 |
CFS | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 1,198 | 1,575 | 558 |
RB | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 1,151 | 1,339 | 180 |
CO | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 2,397 | 1,722 | 3,223 |
Operating segments | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 25,978 | 23,176 | 19,657 |
Profit (loss) before tax | 13,195 | 8,323 | 5,072 |
Net profit/(loss) | 10,304 | 6,679 | 4,137 |
Operating segments | PS | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 22,637 | 20,965 | 16,497 |
Profit (loss) before tax | 15,629 | 14,716 | 11,552 |
Net profit/(loss) | 12,608 | 12,105 | 9,529 |
Operating segments | CFS | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 1,066 | 1,339 | 385 |
Profit (loss) before tax | (997) | (2,484) | (3,281) |
Net profit/(loss) | (793) | (1,981) | (2,618) |
Operating segments | RB | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 548 | (490) | (263) |
Profit (loss) before tax | (907) | (2,858) | (1,327) |
Net profit/(loss) | (781) | (2,317) | (1,061) |
Operating segments | CO | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 1,727 | 1,362 | 3,038 |
Profit (loss) before tax | (530) | (1,051) | (1,872) |
Net profit/(loss) | (730) | (1,128) | (1,713) |
Material reconciling items, cost of revenue | |||
Disclosure of operating segments | |||
Revenue | 16,494 | 14,075 | 10,332 |
Material reconciling items, cost of revenue | Discontinued operations | |||
Disclosure of operating segments | |||
Revenue | 764 | 2,085 | 621 |
Material reconciling items, fair value adjustments recorded on business combinations and their amortization | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Profit (loss) before tax | (337) | (479) | (369) |
Net profit/(loss) | (337) | (479) | (369) |
Material reconciling items, impairment of non-current assets | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Profit (loss) before tax | (134) | (792) | |
Net profit/(loss) | (134) | (792) | |
Material reconciling items, share-based payments | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Profit (loss) before tax | (43) | (464) | (635) |
Net profit/(loss) | (43) | (464) | (635) |
Material reconciling items, offering expenses | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Profit (loss) before tax | (71) | (79) | |
Net profit/(loss) | (71) | (79) | |
Material reconciling items, loss from sale of Sovest loans' portfolio | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Profit (loss) before tax | (712) | ||
Net profit/(loss) | (712) | ||
Material reconciling items, loss on disposal of subsidiary | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Profit (loss) before tax | (42) | ||
Net profit/(loss) | (42) | ||
Material reconciling items, foreign exchange loss from revaluation of cash proceeds received from secondary public offering | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Profit (loss) before tax | (130) | 433 | |
Net profit/(loss) | (130) | 433 | |
Material reconciling items, effect from taxation | Continuing and discontinued operations | |||
Disclosure of operating segments | |||
Net profit/(loss) | ₽ (27) | ₽ 152 | ₽ 60 |
Operating segments - Geographic
Operating segments - Geographic information (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of geographical areas | |||
Revenue | ₽ 40,622 | ₽ 35,941 | ₽ 29,593 |
Continuing and discontinued operations | |||
Disclosure of geographical areas | |||
Revenue | 43,236 | 39,336 | 30,610 |
Russia | Continuing and discontinued operations | |||
Disclosure of geographical areas | |||
Revenue | 33,283 | 29,485 | 22,693 |
Other CIS | Continuing and discontinued operations | |||
Disclosure of geographical areas | |||
Revenue | 1,746 | 1,592 | 1,393 |
EU | Continuing and discontinued operations | |||
Disclosure of geographical areas | |||
Revenue | 2,748 | 3,291 | 2,353 |
Other countries | Continuing and discontinued operations | |||
Disclosure of geographical areas | |||
Revenue | ₽ 5,459 | ₽ 4,968 | ₽ 4,171 |
Operating segments - Major cust
Operating segments - Major customers (Details) - customer | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments | |||
Number of customers exceeding ten percent of revenue | 1 | 1 | 0 |
Major customer One | PS | |||
Disclosure of operating segments | |||
Percentage of entity's revenue | 13.00% | 10.30% |
Operating segments - Disaggrega
Operating segments - Disaggregated revenue information (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of disaggregation of revenue from contracts with customers | |||
Payment processing fees | ₽ 34,326 | ₽ 30,736 | ₽ 23,694 |
Cash and settlement service fees | 512 | 932 | 2,980 |
Platform and marketing services related fees | 794 | 157 | 98 |
Fees for guarantees issued | 440 | 121 | 25 |
Other revenue | 208 | 228 | 122 |
Continuing and discontinued operations | |||
Disclosure of disaggregation of revenue from contracts with customers | |||
Payment processing fees | 34,326 | 30,736 | 23,694 |
Cash and settlement service fees | 1,326 | 1,403 | 3,017 |
Installment cards related fees | 827 | 1,139 | 359 |
Platform and marketing services related fees | 809 | 157 | 100 |
Fees for guarantees issued | 440 | 121 | 25 |
Other revenue | 297 | 328 | 142 |
Total revenue from contracts with customers | 38,025 | 33,884 | 27,337 |
Continuing and discontinued operations | PS | |||
Disclosure of disaggregation of revenue from contracts with customers | |||
Payment processing fees | 34,326 | 30,736 | 23,694 |
Cash and settlement service fees | 80 | 49 | 64 |
Platform and marketing services related fees | 133 | 106 | 97 |
Fees for guarantees issued | 23 | 27 | 12 |
Other revenue | 168 | 106 | 36 |
Total revenue from contracts with customers | 34,730 | 31,024 | 23,903 |
Continuing and discontinued operations | CFS | |||
Disclosure of disaggregation of revenue from contracts with customers | |||
Installment cards related fees | 827 | 1,139 | 359 |
Platform and marketing services related fees | 3 | ||
Total revenue from contracts with customers | 827 | 1,139 | 362 |
Continuing and discontinued operations | RB | |||
Disclosure of disaggregation of revenue from contracts with customers | |||
Cash and settlement service fees | 814 | 471 | 37 |
Platform and marketing services related fees | 14 | ||
Other revenue | 95 | 100 | 20 |
Total revenue from contracts with customers | 923 | 571 | 57 |
Continuing and discontinued operations | CO | |||
Disclosure of disaggregation of revenue from contracts with customers | |||
Cash and settlement service fees | 432 | 883 | 2,916 |
Platform and marketing services related fees | 662 | 51 | |
Fees for guarantees issued | 417 | 94 | 13 |
Other revenue | 34 | 122 | 86 |
Total revenue from contracts with customers | ₽ 1,545 | ₽ 1,150 | ₽ 3,015 |
Earnings per share (Details)
Earnings per share (Details) - RUB (₽) ₽ / shares in Units, ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share | |||
Net profit attributable to ordinary equity holders of the parent for basic earnings | ₽ 8,842 | ₽ 4,832 | ₽ 3,584 |
Weighted average number of ordinary shares for basic earnings per share | 62,251,274 | 61,788,024 | 61,202,710 |
Effect of share-based payments | 165,196 | 476,420 | 522,116 |
Weighted average number of ordinary shares for diluted earnings per share | 62,416,470 | 62,264,444 | 61,724,826 |
Basic, profit attributable to ordinary equity holders of the parent | ₽ 142.04 | ₽ 78.20 | ₽ 58.56 |
Diluted, profit attributable to ordinary equity holders of the parent | ₽ 141.66 | ₽ 77.60 | ₽ 58.06 |
Property and equipment (Details
Property and equipment (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property and equipment | ||
Beginning balance | ₽ 2,346 | ₽ 1,074 |
Ending balance | 1,893 | 2,346 |
Gross book value of fully depreciated assets | 699 | 321 |
Gross carrying amount | ||
Property and equipment | ||
Beginning balance | 3,775 | 1,831 |
Additions | 523 | 1,699 |
Additions from business combinations | 45 | |
Disposals | (423) | (395) |
Assets held for sale | (341) | |
Foreign currency translation | (1) | |
Ending balance | 3,874 | 3,775 |
Gross carrying amount | Increase (decrease) due to application of IFRS 16 | ||
Property and equipment | ||
Beginning balance | 936 | |
Gross carrying amount | After application of IFRS 16 | ||
Property and equipment | ||
Beginning balance | 2,767 | |
Accumulated depreciation, amortisation and impairment | ||
Property and equipment | ||
Beginning balance | (1,429) | (757) |
Depreciation charge (including discontinued operations) | (699) | (652) |
Disposals | 159 | 113 |
Assets held for sale | 218 | |
Impairment (Note 11) | (12) | (351) |
Ending balance | (1,981) | (1,429) |
Processing servers and engineering equipment | ||
Property and equipment | ||
Beginning balance | 610 | 807 |
Ending balance | 638 | 610 |
Processing servers and engineering equipment | Gross carrying amount | ||
Property and equipment | ||
Beginning balance | 1,169 | 1,339 |
Transfer between groups | 98 | (110) |
Additions | 167 | 356 |
Disposals | (33) | (75) |
Assets held for sale | (341) | |
Foreign currency translation | 1 | |
Ending balance | 1,402 | 1,169 |
Processing servers and engineering equipment | Gross carrying amount | After application of IFRS 16 | ||
Property and equipment | ||
Beginning balance | 1,339 | |
Processing servers and engineering equipment | Accumulated depreciation, amortisation and impairment | ||
Property and equipment | ||
Beginning balance | (559) | (532) |
Transfer between groups | 96 | |
Depreciation charge (including discontinued operations) | (221) | (246) |
Disposals | 16 | 37 |
Assets held for sale | 218 | |
Impairment (Note 11) | (132) | |
Ending balance | (764) | (559) |
Computers and office equipment | ||
Property and equipment | ||
Beginning balance | 191 | 172 |
Ending balance | 117 | 191 |
Computers and office equipment | Gross carrying amount | ||
Property and equipment | ||
Beginning balance | 330 | 278 |
Transfer between groups | 4 | 3 |
Additions | 61 | 147 |
Disposals | (73) | (98) |
Ending balance | 322 | 330 |
Computers and office equipment | Gross carrying amount | After application of IFRS 16 | ||
Property and equipment | ||
Beginning balance | 278 | |
Computers and office equipment | Accumulated depreciation, amortisation and impairment | ||
Property and equipment | ||
Beginning balance | (139) | (106) |
Depreciation charge (including discontinued operations) | (96) | (68) |
Disposals | 30 | 35 |
Ending balance | (205) | (139) |
Other equipment | ||
Property and equipment | ||
Beginning balance | 30 | 76 |
Ending balance | 15 | 30 |
Other equipment | Gross carrying amount | ||
Property and equipment | ||
Beginning balance | 53 | 195 |
Transfer between groups | (4) | (152) |
Additions | 14 | |
Additions from business combinations | 3 | |
Disposals | (5) | (7) |
Ending balance | 44 | 53 |
Other equipment | Gross carrying amount | After application of IFRS 16 | ||
Property and equipment | ||
Beginning balance | 195 | |
Other equipment | Accumulated depreciation, amortisation and impairment | ||
Property and equipment | ||
Beginning balance | (23) | (119) |
Transfer between groups | 128 | |
Depreciation charge (including discontinued operations) | (8) | (34) |
Disposals | 2 | 2 |
Ending balance | (29) | (23) |
Construction in progress (CIP) and Advances for equipment | ||
Property and equipment | ||
Beginning balance | 108 | 19 |
Ending balance | 23 | 108 |
Construction in progress (CIP) and Advances for equipment | Gross carrying amount | ||
Property and equipment | ||
Beginning balance | 108 | 19 |
Transfer between groups | (101) | (9) |
Additions | 18 | 104 |
Disposals | (6) | |
Foreign currency translation | (2) | |
Ending balance | 23 | 108 |
Construction in progress (CIP) and Advances for equipment | Gross carrying amount | After application of IFRS 16 | ||
Property and equipment | ||
Beginning balance | 19 | |
Leasehold improvements | ||
Property and equipment | ||
Beginning balance | 55 | |
Ending balance | 13 | 55 |
Leasehold improvements | Gross carrying amount | ||
Property and equipment | ||
Beginning balance | 498 | |
Transfer between groups | 3 | 268 |
Additions | 14 | 230 |
Disposals | (62) | |
Ending balance | 453 | 498 |
Leasehold improvements | Accumulated depreciation, amortisation and impairment | ||
Property and equipment | ||
Beginning balance | (443) | |
Transfer between groups | (224) | |
Depreciation charge (including discontinued operations) | (46) | |
Disposals | 61 | |
Impairment (Note 11) | (12) | (219) |
Ending balance | (440) | (443) |
Right of use of leased assets | ||
Property and equipment | ||
Beginning balance | 1,352 | |
Ending balance | 1,087 | 1,352 |
Right of use of leased assets | Gross carrying amount | ||
Property and equipment | ||
Beginning balance | 1,617 | |
Additions | 263 | 848 |
Additions from business combinations | 42 | |
Disposals | (250) | (209) |
Ending balance | 1,630 | 1,617 |
Right of use of leased assets | Gross carrying amount | Increase (decrease) due to application of IFRS 16 | ||
Property and equipment | ||
Beginning balance | 936 | |
Right of use of leased assets | Gross carrying amount | After application of IFRS 16 | ||
Property and equipment | ||
Beginning balance | 936 | |
Right of use of leased assets | Accumulated depreciation, amortisation and impairment | ||
Property and equipment | ||
Beginning balance | (265) | |
Depreciation charge (including discontinued operations) | (328) | (304) |
Disposals | 50 | 39 |
Ending balance | ₽ (543) | ₽ (265) |
Intangible assets (Details)
Intangible assets (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | ₽ 11,316 | ₽ 10,846 |
Ending balance | 10,813 | 11,316 |
Gross amount of fully amortized intangible assets | 787 | 450 |
Gross carrying amount | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 15,290 | 13,790 |
Additions | 198 | 447 |
Additions from business combinations | 1,248 | |
Disposals | (687) | (195) |
Ending balance | 14,801 | 15,290 |
Accumulated depreciation, amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | (3,974) | (2,944) |
Amortization charge (including discontinued operations) | (567) | (672) |
Impairment (Note 11) | (111) | (441) |
Disposals | 664 | 83 |
Ending balance | (3,988) | (3,974) |
Goodwill | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 7,062 | 6,378 |
Ending balance | 7,084 | 7,062 |
Goodwill | Gross carrying amount | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 7,155 | 6,378 |
Additions | 22 | |
Additions from business combinations | 777 | |
Disposals | (93) | |
Ending balance | 7,084 | 7,155 |
Goodwill | Accumulated depreciation, amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | (93) | |
Impairment (Note 11) | (93) | |
Disposals | 93 | |
Ending balance | (93) | |
Customer relationships | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 3,098 | 3,307 |
Ending balance | 2,798 | 3,098 |
Customer relationships | Gross carrying amount | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 5,573 | 5,414 |
Additions from business combinations | 159 | |
Disposals | (88) | |
Ending balance | 5,485 | 5,573 |
Customer relationships | Accumulated depreciation, amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | (2,475) | (2,107) |
Amortization charge (including discontinued operations) | (300) | (301) |
Impairment (Note 11) | (67) | |
Disposals | 88 | |
Ending balance | (2,687) | (2,475) |
Licenses | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 183 | 183 |
Ending balance | 183 | 183 |
Licenses | Gross carrying amount | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 183 | 183 |
Ending balance | 183 | 183 |
Computer software | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 707 | 694 |
Ending balance | 625 | 707 |
Computer software | Gross carrying amount | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 1,750 | 1,354 |
Additions | 120 | 236 |
Additions from business combinations | 280 | |
Transfer between groups | 95 | 36 |
Disposals | (414) | (156) |
Ending balance | 1,551 | 1,750 |
Computer software | Accumulated depreciation, amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | (1,043) | (660) |
Amortization charge (including discontinued operations) | (216) | (317) |
Impairment (Note 11) | (61) | (148) |
Disposals | 394 | 82 |
Ending balance | (926) | (1,043) |
Trademarks | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 61 | 188 |
Ending balance | 31 | 61 |
Trademarks | Gross carrying amount | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 387 | 355 |
Additions from business combinations | 32 | |
Ending balance | 387 | 387 |
Trademarks | Accumulated depreciation, amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | (326) | (167) |
Amortization charge (including discontinued operations) | (30) | (44) |
Impairment (Note 11) | (115) | |
Ending balance | (356) | (326) |
Advances for intangibles, CIP and others | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 205 | 96 |
Ending balance | 92 | 205 |
Advances for intangibles, CIP and others | Gross carrying amount | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | 242 | 106 |
Additions | 56 | 211 |
Transfer between groups | (95) | (36) |
Disposals | (92) | (39) |
Ending balance | 111 | 242 |
Advances for intangibles, CIP and others | Accumulated depreciation, amortisation and impairment | ||
Disclosure of reconciliation of changes in intangible assets and goodwill | ||
Beginning balance | (37) | (10) |
Amortization charge (including discontinued operations) | (21) | (10) |
Impairment (Note 11) | (50) | (18) |
Disposals | 89 | 1 |
Ending balance | ₽ (19) | ₽ (37) |
Impairment testing of goodwil_3
Impairment testing of goodwill and intangible assets (Details) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020RUB (₽)item | Dec. 31, 2019RUB (₽) | |
Impairment testing of goodwill and intangible assets | ||
Number of CGUs to which goodwill is allocated | item | 2 | |
Number of CGUs to which intangible assets with indefinite useful life relate | item | 4 | |
Beginning balance | ₽ 11,316 | ₽ 10,846 |
Ending balance | 10,813 | 11,316 |
Goodwill and indefinite life licences | ||
Impairment testing of goodwill and intangible assets | ||
Beginning balance | 7,245 | 6,561 |
Addition | 22 | 777 |
Impairment | (93) | |
Ending balance | 7,267 | 7,245 |
Goodwill | ||
Impairment testing of goodwill and intangible assets | ||
Beginning balance | 7,062 | 6,378 |
Ending balance | 7,084 | 7,062 |
Goodwill | PS | ||
Impairment testing of goodwill and intangible assets | ||
Beginning balance | 6,336 | 6,285 |
Addition | 22 | 51 |
Ending balance | 6,358 | 6,336 |
Goodwill | RB | ||
Impairment testing of goodwill and intangible assets | ||
Beginning balance | 93 | |
Impairment | (93) | |
Goodwill | Flocktory | ||
Impairment testing of goodwill and intangible assets | ||
Beginning balance | 726 | |
Addition | 726 | |
Ending balance | 726 | 726 |
Bank license (indefinite life license) | ||
Impairment testing of goodwill and intangible assets | ||
Beginning balance | 183 | 183 |
Ending balance | ₽ 183 | ₽ 183 |
Impairment testing of goodwil_4
Impairment testing of goodwill and intangible assets - Goodwill and intangible assets with indefinite useful life (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impairment testing of goodwill and intangible assets | |||
Intangible assets and goodwill | ₽ 10,813 | ₽ 11,316 | ₽ 10,846 |
Impairment loss recognised in profit or loss | 32 | 201 | 23 |
RB | |||
Impairment testing of goodwill and intangible assets | |||
Impairment loss recognised in profit or loss, excluding goodwill impairment | 498 | ||
Qiwi Box | |||
Impairment testing of goodwill and intangible assets | |||
Impairment loss recognised in profit or loss, excluding goodwill impairment | 201 | ||
SOVEST | |||
Impairment testing of goodwill and intangible assets | |||
Write-down to fair value less costs to sell | 68 | ||
Other venture projects | |||
Impairment testing of goodwill and intangible assets | |||
Impairment loss recognised in profit or loss | 55 | ||
Goodwill | |||
Impairment testing of goodwill and intangible assets | |||
Intangible assets and goodwill | 7,084 | 7,062 | 6,378 |
Impairment loss recognised in profit or loss | 0 | ||
Goodwill | PS | |||
Impairment testing of goodwill and intangible assets | |||
Intangible assets and goodwill | 6,358 | 6,336 | 6,285 |
Goodwill | PS | Expected credit loss allowance / Impairment | |||
Impairment testing of goodwill and intangible assets | |||
Intangible assets and goodwill | 0 | 0 | 0 |
Goodwill | Flocktory | |||
Impairment testing of goodwill and intangible assets | |||
Intangible assets and goodwill | ₽ 726 | 726 | |
Explanation of period over which management has projected cash flows | P5Y | ||
Pre-tax discount rate adjusted to risk specific applied to cash flow projections | 22.00% | ||
Growth rate applied to discounted terminal value projection | 3.80% | ||
Goodwill | Flocktory | Expected credit loss allowance / Impairment | |||
Impairment testing of goodwill and intangible assets | |||
Intangible assets and goodwill | ₽ 0 | ||
Goodwill | RB | |||
Impairment testing of goodwill and intangible assets | |||
Intangible assets and goodwill | 93 | ||
Impairment loss recognised in profit or loss | 93 | ||
Bank license (indefinite life license) | |||
Impairment testing of goodwill and intangible assets | |||
Intangible assets and goodwill | 183 | 183 | 183 |
Bank license (indefinite life license) | Expected credit loss allowance / Impairment | |||
Impairment testing of goodwill and intangible assets | |||
Intangible assets and goodwill | ₽ 0 | ₽ 0 | ₽ 0 |
Long-term and short-term loan_3
Long-term and short-term loans issued (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments | ||
Long-term loans | ₽ 214 | ₽ 265 |
Short-term loans | 5,799 | 11,419 |
Loans to legal entities | ||
Disclosure of detailed information about financial instruments | ||
Long-term loans | 214 | 265 |
Short-term loans | 5,799 | 3,434 |
Instalment card loans | ||
Disclosure of detailed information about financial instruments | ||
Short-term loans | 7,985 | |
Gross carrying amount | ||
Disclosure of detailed information about financial instruments | ||
Long-term loans | 214 | 265 |
Short-term loans | 5,836 | 12,262 |
Gross carrying amount | Loans to legal entities | ||
Disclosure of detailed information about financial instruments | ||
Long-term loans | 214 | 265 |
Short-term loans | 5,836 | 3,467 |
Gross carrying amount | Instalment card loans | ||
Disclosure of detailed information about financial instruments | ||
Short-term loans | 8,795 | |
Expected credit loss allowance / Impairment | ||
Disclosure of detailed information about financial instruments | ||
Short-term loans | (37) | (843) |
Expected credit loss allowance / Impairment | Loans to legal entities | ||
Disclosure of detailed information about financial instruments | ||
Short-term loans | ₽ (37) | (33) |
Expected credit loss allowance / Impairment | Instalment card loans | ||
Disclosure of detailed information about financial instruments | ||
Short-term loans | ₽ (810) |
Long-term and short-term loan_4
Long-term and short-term loans issued - Changes in the ECL allowances (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans issued | Expected credit loss allowance / Impairment | |||
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | ₽ (843) | ₽ (853) | |
Changes because of financial instruments (originated or acquired)/derecognized during the reporting period | (837) | (616) | ₽ (499) |
Amounts sold and written off | 1,643 | 626 | 75 |
ECL allowance as end of the period | (37) | (843) | (853) |
Loans issued | Expected credit loss allowance / Impairment | Opening balance after application of IFRS 9 | |||
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | (429) | ||
Loans issued | Expected credit loss allowance / Impairment | 12 month ECL | Collective | |||
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | (229) | (216) | |
Changes because of financial instruments (originated or acquired)/derecognized during the reporting period | (128) | (127) | (146) |
Transfers between stages | 140 | 114 | 105 |
Amounts sold and written off | 212 | ||
ECL allowance as end of the period | (5) | (229) | (216) |
Loans issued | Expected credit loss allowance / Impairment | 12 month ECL | Collective | Opening balance after application of IFRS 9 | |||
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | (175) | ||
Loans issued | Expected credit loss allowance / Impairment | Lifetime ECL | Financial instruments not credit-impaired | Collective | |||
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | (120) | (120) | |
Changes because of financial instruments (originated or acquired)/derecognized during the reporting period | (211) | 7 | (44) |
Transfers between stages | (8) | (7) | (16) |
Amounts sold and written off | 338 | ||
ECL allowance as end of the period | (1) | (120) | (120) |
Loans issued | Expected credit loss allowance / Impairment | Lifetime ECL | Financial instruments not credit-impaired | Collective | Opening balance after application of IFRS 9 | |||
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | (60) | ||
Loans issued | Expected credit loss allowance / Impairment | Lifetime ECL | Financial instruments credit-impaired | |||
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | (494) | (517) | |
Changes because of financial instruments (originated or acquired)/derecognized during the reporting period | (498) | (496) | (309) |
Transfers between stages | (132) | (107) | (89) |
Amounts sold and written off | 1,093 | 626 | 75 |
ECL allowance as end of the period | ₽ (31) | (494) | (517) |
Loans issued | Expected credit loss allowance / Impairment | Lifetime ECL | Financial instruments credit-impaired | Opening balance after application of IFRS 9 | |||
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | ₽ (194) | ||
Instalment card loans | Gross carrying amount | |||
Changes in the ECL allowances | |||
Amounts sold and written off | ₽ (655) |
Trade and other receivables - S
Trade and other receivables - Summary of trade and other receivables (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Trade and other receivables | ||
Trade and other receivables | ₽ 7,445 | ₽ 6,162 |
Maximum | ||
Trade and other receivables | ||
Credit terms for receivables | 30 days | |
Financial assets | ||
Trade and other receivables | ||
Trade and other receivables | ₽ 7,192 | 5,783 |
Cash receivable from agents | ||
Trade and other receivables | ||
Trade and other receivables | ₽ 2,208 | 2,748 |
Cash receivable from agents | Minimum | ||
Trade and other receivables | ||
Receivables, interest rate | 20.00% | |
Cash receivable from agents | Maximum | ||
Trade and other receivables | ||
Receivables, interest rate | 36.00% | |
Deposits issued to merchants | ||
Trade and other receivables | ||
Trade and other receivables | ₽ 4,622 | 2,678 |
Commissions receivable | ||
Trade and other receivables | ||
Trade and other receivables | 116 | 137 |
Other receivables | ||
Trade and other receivables | ||
Trade and other receivables | 246 | 220 |
Advances issued | ||
Trade and other receivables | ||
Trade and other receivables | 253 | 379 |
Gross carrying amount | ||
Trade and other receivables | ||
Trade and other receivables | 7,729 | 6,451 |
Gross carrying amount | Financial assets | ||
Trade and other receivables | ||
Trade and other receivables | 7,475 | 6,071 |
Gross carrying amount | Cash receivable from agents | ||
Trade and other receivables | ||
Trade and other receivables | 2,358 | 2,947 |
Gross carrying amount | Deposits issued to merchants | ||
Trade and other receivables | ||
Trade and other receivables | 4,639 | 2,690 |
Gross carrying amount | Commissions receivable | ||
Trade and other receivables | ||
Trade and other receivables | 135 | 158 |
Gross carrying amount | Other receivables | ||
Trade and other receivables | ||
Trade and other receivables | 343 | 276 |
Gross carrying amount | Advances issued | ||
Trade and other receivables | ||
Trade and other receivables | 254 | 380 |
Expected credit loss allowance / Impairment | ||
Trade and other receivables | ||
Trade and other receivables | (284) | (289) |
Expected credit loss allowance / Impairment | Financial assets | ||
Trade and other receivables | ||
Trade and other receivables | (283) | (288) |
Expected credit loss allowance / Impairment | Cash receivable from agents | ||
Trade and other receivables | ||
Trade and other receivables | (150) | (199) |
Expected credit loss allowance / Impairment | Deposits issued to merchants | ||
Trade and other receivables | ||
Trade and other receivables | (17) | (12) |
Expected credit loss allowance / Impairment | Commissions receivable | ||
Trade and other receivables | ||
Trade and other receivables | (19) | (21) |
Expected credit loss allowance / Impairment | Other receivables | ||
Trade and other receivables | ||
Trade and other receivables | (97) | (56) |
Expected credit loss allowance / Impairment | Advances issued | ||
Trade and other receivables | ||
Trade and other receivables | ₽ (1) | ₽ (1) |
Trade and other receivables - C
Trade and other receivables - Changes in the ECL allowances (Details) - Trade and other receivables - Expected credit loss allowance / Impairment - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | ₽ (289) | ₽ (366) | ₽ (578) |
Changes because of financial instruments (originated or acquired)/derecognized during the reporting period | (57) | (9) | 5 |
Amounts written off | 62 | 86 | 207 |
ECL allowance as end of the period | ₽ (284) | ₽ (289) | ₽ (366) |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | ||||
Total cash and cash equivalents | ₽ 47,382 | ₽ 42,101 | ₽ 40,966 | ₽ 18,435 |
Gross carrying amount | ||||
Cash and cash equivalents | ||||
Correspondent accounts with Central Bank of Russia (CBR) | 3,467 | 3,261 | ||
Cash with banks and on hand | 9,089 | 7,317 | ||
Short-term CBR deposits | 32,800 | 30,500 | ||
Other short-term bank deposits | 2,028 | 1,025 | ||
Expected credit loss allowance / Impairment | ||||
Cash and cash equivalents | ||||
Total cash and cash equivalents | ₽ (2) | ₽ (2) |
Cash and cash equivalents - For
Cash and cash equivalents - Foreign Currency Sensitivity and Risk Managment (Details) ₽ in Millions, $ in Millions | Dec. 31, 2020USD ($) | Dec. 31, 2020RUB (₽) | Dec. 31, 2019RUB (₽) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) |
Schedule Of Cash And Cash Equivalents In Different Currencies | |||||
Cash and cash equivalents | ₽ 47,382 | ₽ 42,101 | ₽ 40,966 | ₽ 18,435 | |
Cash deposit | $ | $ 2.5 | ||||
Russian ruble | |||||
Schedule Of Cash And Cash Equivalents In Different Currencies | |||||
Cash and cash equivalents | 40,040 | 36,594 | |||
Euro | |||||
Schedule Of Cash And Cash Equivalents In Different Currencies | |||||
Cash and cash equivalents | 3,407 | 2,021 | |||
US Dollar | |||||
Schedule Of Cash And Cash Equivalents In Different Currencies | |||||
Cash and cash equivalents | 2,847 | 2,618 | |||
Others | |||||
Schedule Of Cash And Cash Equivalents In Different Currencies | |||||
Cash and cash equivalents | ₽ 1,088 | ₽ 868 |
Other current assets and othe_3
Other current assets and other current liabilities - Other current assets (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other current assets and other current liabilities | ||
Reserves at CBR | ₽ 736 | ₽ 611 |
Total other financial assets | 736 | 611 |
Prepaid expenses | 259 | 230 |
Other | 207 | 76 |
Total other current assets | ₽ 1,202 | ₽ 917 |
Other current assets and othe_4
Other current assets and other current liabilities - Additional information (Details) | 6 Months Ended |
Dec. 31, 2019 | |
Russian ruble | |
Other current assets | |
Mandatory reserves at central bank, as percentage of liabilities | 4.75% |
Foreign currencies | |
Other current assets | |
Mandatory reserves at central bank, as percentage of liabilities | 8.00% |
Other current assets and othe_5
Other current assets and other current liabilities - Other current liabilities (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Other current assets and other current liabilities | ||
Contract liability related to loyalty program | ₽ 66 | ₽ 607 |
Contract liability related to guarantees issued | 521 | 199 |
Other | 60 | 96 |
Total other current liabilities | ₽ 647 | ₽ 902 |
Share capital, additional pai_3
Share capital, additional paid-in capital, share premium and other reserves (Details) | Dec. 31, 2020Vote / sharesitem€ / shares |
Share capital | |
Number of classes of shares | item | 2 |
Ordinary Class A shares | |
Share capital | |
Number of votes per share | Vote / shares | 10 |
Nominal value per share | € / shares | € 0.0005 |
Ordinary Class B shares | |
Share capital | |
Number of votes per share | Vote / shares | 1 |
Nominal value per share | € / shares | € 0.0005 |
Share capital, additional pai_4
Share capital, additional paid-in capital, share premium and other reserves - Summary of authorised, issued and fully paid shares (Details) - shares shares in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of classes of share capital | |||
Authorised shares | 230,850 | 230,850 | 230,850 |
Issued and fully paid shares | 62,713 | 62,713 | 62,713 |
Ordinary Class A shares | |||
Disclosure of classes of share capital | |||
Authorised shares | 127,914 | 129,583 | 131,333 |
Issued and fully paid shares | 10,414 | 12,083 | 13,833 |
Ordinary Class B shares | |||
Disclosure of classes of share capital | |||
Authorised shares | 102,936 | 101,267 | 99,517 |
Issued and fully paid shares | 52,299 | 50,630 | 48,880 |
Treasury shares | 334 | 620 |
Share capital, additional pai_5
Share capital, additional paid-in capital, share premium and other reserves - Movement in number of shares outstanding (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning balance, shares outstanding | 62,093 | 61,452 |
Increase of share capital due to exercise of options by employees during the year, shares | 286 | 641 |
Ending balance, shares outstanding | 62,379 | 62,093 |
Ordinary Class A shares | ||
Beginning balance, shares outstanding | 12,083 | 13,833 |
Transfer between classes | (1,669) | (1,750) |
Ending balance, shares outstanding | 10,414 | 12,083 |
Ordinary Class B shares | ||
Beginning balance, shares outstanding | 50,010 | 47,619 |
Transfer between classes | 1,669 | 1,750 |
Increase of share capital due to exercise of options by employees during the year, shares | 286 | 641 |
Ending balance, shares outstanding | 51,965 | 50,010 |
Debt (Details)
Debt (Details) - RUB (₽) ₽ in Millions | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt | |||
Debt | ₽ 6,563 | ₽ 1,545 | |
Including short-term portion | 1,640 | ||
Interest expense regarding Group's debt | 218 | 17 | |
Secured revolving credit facilities | 2,000 | ||
Bank'revolving credit facility, Maturity December 31, 2021 | |||
Debt | |||
Credit limit | ₽ 460 | ||
Borrowings maturity | December 31, 2021 | ||
Bank'revolving credit facility, Maturity December 31, 2021 | Maximum | |||
Debt | |||
Interest rate | 10.00% | ||
Bank' revolving credit facility, Maturity October 7, 2021 | |||
Debt | |||
Credit limit | ₽ 1,000 | ||
Interest rate | 8.50% | ||
Borrowings maturity | October 7, 2021** | ||
Debt | ₽ 604 | 765 | |
Bank' revolving credit facility, Maturity December 22, 2021 | |||
Debt | |||
Credit limit | ₽ 1,000 | ||
Interest rate | 8.50% | ||
Borrowings maturity | December 22, 2021** | ||
Debt | ₽ 945 | ₽ 780 | |
Bonds issued | |||
Debt | |||
Credit limit | ₽ 5,000 | ₽ 5,000 | |
Interest rate | 8.40% | 8.40% | |
Borrowings maturity | October 10, 2023 | ||
Debt | ₽ 5,014 | ||
Bond issue costs | ₽ 83 | ||
Effective interest rate | 9.30% |
Trade and other payables (Detai
Trade and other payables (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Trade and other payables | ||
Payables to merchants | ₽ 12,801 | ₽ 12,116 |
Money remittances and e-wallets accounts payable | 5,725 | 6,515 |
Deposits received from agents | 8,357 | 6,246 |
Commissions payable | 465 | 503 |
Accrued personnel expenses and related taxes | 1,386 | 883 |
Provision for undrawn credit commitments (Note 27) | 98 | |
Other payables | 794 | 934 |
Total trade and other payables | ₽ 29,528 | ₽ 27,295 |
Customer accounts and amounts_3
Customer accounts and amounts due to banks (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Customer accounts and amounts due to banks | ||
Individuals' current/demand accounts | ₽ 1,539 | ₽ 11,553 |
Legal entities' current/demand accounts | 6,995 | 4,599 |
Term deposits | 1,156 | 3,251 |
Due to banks | 2,647 | 2,560 |
Total customer accounts and amounts due to banks | 12,337 | 21,963 |
Including long-term deposits | ₽ 36 | ₽ 444 |
Customer accounts and amounts_4
Customer accounts and amounts due to banks - Additional information (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Maximum | ||
Disclosure of amounts due to customers and amounts due to banks | ||
Interest rate on customer accounts and amounts due to banks | 4.00% | 6.00% |
Investment in associates (Detai
Investment in associates (Details) ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2020RUB (₽)item | Dec. 31, 2019RUB (₽) | Dec. 31, 2018RUB (₽) | Dec. 31, 2017RUB (₽) | |
Investment in associates | ||||
Number of associates | item | 1 | |||
Associates' statement of financial position: | ||||
Non-current assets | ₽ 18,371 | ₽ 19,360 | ||
Current assets | 64,944 | 62,117 | ||
including cash and cash equivalents | 47,382 | 42,101 | ₽ 40,966 | ₽ 18,435 |
Current liabilities | (44,617) | (50,240) | ||
Carrying amount of investment in associates (45%) of net assets | 1,635 | 1,118 | ||
Revenue and net income | ||||
Revenue | 40,622 | 35,941 | 29,593 | |
Cost of revenues | (16,494) | (14,075) | (10,332) | |
Other income and expenses, net | (95) | (91) | (181) | |
including personnel expenses | (6,108) | (5,192) | (5,758) | |
including depreciation and amortization | (1,101) | (1,066) | (772) | |
Net profit | ₽ 8,938 | 4,887 | 3,626 | |
JSC Tochka | ||||
Investment in associates | ||||
Share in entity according to share in dividends and potential capital gains | 45.00% | |||
Associates' statement of financial position: | ||||
Non-current assets | ₽ 1,437 | 1,199 | ||
Current assets | 3,729 | 2,019 | ||
including cash and cash equivalents | 2,631 | 995 | ||
Non-current financial liabilities | (263) | (337) | ||
Current liabilities | (1,270) | (397) | ||
including financial liabilities | (959) | (314) | ||
Net assets | 3,633 | 2,484 | ||
Carrying amount of investment in associates (45%) of net assets | 1,635 | 1,118 | ||
Revenue and net income | ||||
Revenue | 7,697 | 5,534 | 4 | |
Cost of revenues | (453) | (289) | (3) | |
Other income and expenses, net | (5,752) | (4,565) | (85) | |
including personnel expenses | (2,965) | (2,147) | (1) | |
including depreciation and amortization | (297) | (129) | (1) | |
Net profit | 1,492 | 680 | (84) | |
Group's share (45%) of total net profit/(loss) | ₽ 672 | ₽ 306 | ₽ (38) |
Leases - Additional information
Leases - Additional information (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Expense relating to short-term leases | ₽ 60 | ₽ 198 |
Future minimum lease rentals under non-cancellable operating lease commitments for short term lease | ₽ 21 | ₽ 32 |
Maximum | ||
Leases | ||
Average life of lease | 9 years |
Leases - Changes (Details)
Leases - Changes (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease liabilities | ||
Balance at the beginning | ₽ 1,357 | |
Additions | 263 | ₽ 851 |
Derecognition | (204) | (175) |
Interest expense | 116 | 95 |
Payments | (416) | (482) |
Balance at the end | 1,116 | 1,357 |
Short-term portion of lease liabilities | 354 | 340 |
After application of IFRS 16 | ||
Lease liabilities | ||
Balance at the beginning | 1,068 | |
Office buildings | ||
Right-of-use assets | ||
Balance at the beginning | 1,352 | |
Additions | 263 | 891 |
Derecognition | (200) | (171) |
Depreciation | (328) | (304) |
Balance at the end | ₽ 1,087 | 1,352 |
Office buildings | After application of IFRS 16 | ||
Right-of-use assets | ||
Balance at the beginning | ₽ 936 |
Revenue (Details)
Revenue (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | |||
Cash and settlement service fees | ₽ 512 | ₽ 932 | ₽ 2,980 |
Platform and marketing services related fees | 794 | 157 | 98 |
Fees for guarantees issued | 440 | 121 | 25 |
Other revenue | 208 | 228 | 122 |
Total other revenue | ₽ 1,954 | ₽ 1,438 | ₽ 3,225 |
Revenue - Interest income net (
Revenue - Interest income net (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | |||
Interest revenue calculated using the effective interest rate | ₽ (2,390) | ₽ (1,961) | ₽ (1,255) |
Interest expense classified as part of cost of revenue | 288 | 47 | 26 |
Interest income and expenses from non-banking loans, net, classified separately in the consolidated statement of comprehensive income | 68 | 18 | (17) |
Interest income and expenses related to discontinued operations | (659) | (1,005) | (536) |
Interest income, net, for the purposes of consolidated cash flow statement | ₽ (2,693) | ₽ (2,901) | ₽ (1,782) |
Cost of revenue (Details)
Cost of revenue (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cost of revenue | |||
Transaction costs | ₽ 14,777 | ₽ 12,633 | ₽ 9,324 |
Cost of cash and settlement service fees | 171 | 164 | 105 |
Interest expense | 288 | 47 | 26 |
Other expenses | 1,258 | 1,231 | 877 |
Total cost of revenue | ₽ 16,494 | ₽ 14,075 | ₽ 10,332 |
Selling, general and administ_3
Selling, general and administrative expenses (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Selling, general and administrative expenses | |||
Advertising, client acquisition and related expenses | ₽ 301 | ₽ 562 | ₽ 1,176 |
Tax expenses, except income and payroll related taxes | 316 | 367 | 427 |
Advisory and audit services | 611 | 537 | 478 |
Rent of premises | 113 | 102 | 461 |
Expenses related to Tochka platform services | 382 | 538 | |
IT related services | 346 | 325 | 300 |
Offering expenses | 71 | 79 | |
Other expenses | 593 | 932 | 991 |
Total selling, general and administrative expenses | ₽ 2,733 | ₽ 3,442 | ₽ 3,833 |
Dividends paid and proposed (De
Dividends paid and proposed (Details) $ / shares in Units, ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2020RUB (₽) | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2019RUB (₽) | |
Dividends paid and proposed | ||||
Dividends proposed, declared and approved during the year | ₽ | ₽ 4,797 | ₽ 3,366 | ||
Final dividend proposed, declared and approved | $ | $ 13,667,632 | |||
Final dividend proposed, declared and approved (per share) | $ 0.22 | |||
Interim dividend proposed, declared and approved | $ | $ 50,489,929 | $ 51,969,316 | ||
Interim dividend proposed, declared and approved (per share) | $ 0.81 | $ 0.84 | ||
Dividends paid during the year | ₽ | 4,804 | 3,392 | ||
Final dividend paid | $ | $ 13,667,632 | |||
Final dividend paid (per share) | $ 0.22 | |||
Interim dividend paid | $ | $ 50,489,929 | $ 51,969,316 | ||
Interim dividend paid (per share) | $ 0.81 | $ 0.84 | ||
Dividends proposed for approval (not recognized as a liability as of December 31) | $ 19,337,438 | ₽ 1,411 | $ 13,660,424 | ₽ 1,011 |
Dividends proposed for approval, per share (not recognized as a liability as of December 31) | $ 0.31 | $ 0.22 |
Income tax - Additional informa
Income tax - Additional information (Details) - RUB (₽) ₽ in Millions | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of income taxes | ||||
Accumulated unremitted earnings not intended to be distributed | ₽ 8,075 | ₽ 4,367 | ||
Tax payable to distribute unremitted earnings not intended to be distributed | 403 | 218 | ||
Unrecognised deferred tax asset on tax loss carry forward | ₽ 83 | ₽ 102 | ₽ 8 | |
Cyprus | ||||
Disclosure of income taxes | ||||
Corporate income tax rate | 12.50% | |||
Russia | ||||
Disclosure of income taxes | ||||
Corporate income tax rate | 20.00% | |||
Tax rate on income received from government bonds | 15.00% | |||
Withholding tax rate on payment of dividends | 15.00% | 15.00% | ||
Reduced withholding tax rate on payment of dividends | 5.00% | |||
Russia | Minimum | ||||
Disclosure of income taxes | ||||
Reduced withholding tax rate on payment of dividends | 0.00% | 5.00% | ||
Russia | Maximum | ||||
Disclosure of income taxes | ||||
Reduced withholding tax rate on payment of dividends | 5.00% | 10.00% | ||
Kazakhstan | ||||
Disclosure of income taxes | ||||
Corporate income tax rate | 20.00% |
Income tax - Deferred income ta
Income tax - Deferred income tax assets and liabilities (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of deferred tax | ||||
Net deferred income tax asset/(liability) | ₽ (952) | ₽ (532) | ₽ (586) | ₽ (581) |
Deferred tax asset | 209 | 217 | ||
Deferred tax liability | (1,161) | (749) | ||
Deferred tax benefit/(expense) | (420) | 128 | ₽ (57) | |
Intangible assets | ||||
Disclosure of deferred tax | ||||
Net deferred income tax asset/(liability) | (606) | (638) | ||
Deferred tax benefit/(expense) | 32 | 90 | ||
Trade and other payables | ||||
Disclosure of deferred tax | ||||
Net deferred income tax asset/(liability) | 238 | 272 | ||
Deferred tax benefit/(expense) | (34) | 91 | ||
Trade and other receivables | ||||
Disclosure of deferred tax | ||||
Net deferred income tax asset/(liability) | 25 | 58 | ||
Deferred tax benefit/(expense) | (33) | 27 | ||
Loans issued | ||||
Disclosure of deferred tax | ||||
Net deferred income tax asset/(liability) | 10 | 56 | ||
Deferred tax benefit/(expense) | (46) | (13) | ||
Lease obligations | ||||
Disclosure of deferred tax | ||||
Net deferred income tax asset/(liability) | 222 | 287 | ||
Deferred tax benefit/(expense) | (65) | 287 | ||
Property and equipment | ||||
Disclosure of deferred tax | ||||
Net deferred income tax asset/(liability) | (189) | (261) | ||
Deferred tax benefit/(expense) | 72 | (238) | ||
Taxes on unremitted earnings | ||||
Disclosure of deferred tax | ||||
Net deferred income tax asset/(liability) | (680) | (480) | ||
Deferred tax benefit/(expense) | (200) | (202) | ||
Other | ||||
Disclosure of deferred tax | ||||
Net deferred income tax asset/(liability) | 28 | 174 | ||
Deferred tax benefit/(expense) | ₽ (146) | ₽ 86 |
Income tax - Reconciliation of
Income tax - Reconciliation of deferred income tax assets (liability) (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax | |||
Deferred tax liability (asset) at beginning of period | ₽ (532) | ₽ (586) | ₽ (581) |
Impact of adopting new accounting policies | 49 | ||
Effect of acquisitions of subsidiaries | (74) | 3 | |
Deferred tax benefit/(expense) | (420) | 128 | (57) |
Deferred tax liability (asset) at end of period | ₽ (952) | ₽ (532) | ₽ (586) |
Income tax - Income tax expense
Income tax - Income tax expense (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total tax expense | |||
Deferred tax benefit/(expense) | ₽ (420) | ₽ 128 | ₽ (57) |
Income tax expense for the year | (3,119) | (2,513) | (1,751) |
Continuing and discontinued operations | |||
Total tax expense | |||
Current income tax expense | (2,498) | (1,620) | (818) |
Deferred tax benefit/(expense) | (420) | 128 | (57) |
Income tax expense for the year | ₽ (2,918) | ₽ (1,492) | ₽ (875) |
Income tax - Reconciliation bet
Income tax - Reconciliation between theoretical and actual income tax expense (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of income taxes | |||
Profit (loss) before tax | ₽ 14,365 | ₽ 11,954 | ₽ 8,932 |
(Increase)/decrease resulting from the tax effect of: | |||
Income tax expense for the year | (3,119) | (2,513) | (1,751) |
Discontinued operations | |||
Disclosure of income taxes | |||
Profit (loss) before tax | (2,509) | (5,575) | (4,431) |
(Increase)/decrease resulting from the tax effect of: | |||
Income tax expense for the year | 201 | 1,021 | 876 |
Continuing and discontinued operations | |||
Disclosure of income taxes | |||
Profit (loss) before tax | 11,856 | 6,379 | 4,501 |
Theoretical income tax expense at the domestic rate in each individual jurisdiction | (2,043) | (824) | (479) |
(Increase)/decrease resulting from the tax effect of: | |||
Non-taxable income | 216 | 23 | 70 |
Non-deductible expenses | (675) | (387) | (388) |
Income tax associated with earnings of foreign subsidiaries | (333) | (202) | (70) |
Unrecognized deferred tax assets | (83) | (102) | (8) |
Income tax expense for the year | ₽ (2,918) | ₽ (1,492) | ₽ (875) |
Commitments, contingencies an_3
Commitments, contingencies and operating risks (Details) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020RUB (₽)item | Dec. 31, 2019RUB (₽) | |
Commitments, contingencies and operating risks | ||
Monetary fine imposed | ₽ | ₽ 11 | |
Number of types of consumers | item | 3 | |
Maximum effect of additional losses on consolidated financial statements | ₽ | ₽ 2,400 | ₽ 3,000 |
Number of insurance policies held | item | 0 |
Commitments, contingencies an_4
Commitments, contingencies and operating risks - Pledge of assets and guarantees issued (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Assets pledged and guarantees | ||
Maximum term of guaranties issued to non-related parties | 5 years | |
Financial and performance guaranties issued | ₽ 22,036 | ₽ 8,545 |
Debt securities | ||
Assets pledged and guarantees | ||
Pledged financial instruments as collateral for bank guarantees and credit facilities received | ₽ 4,339 | ₽ 3,628 |
Commitments, contingencies an_5
Commitments, contingencies and operating risks - Credit related commitments (Details) - RUB (₽) ₽ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments, contingencies and operating risks | ||
Outstanding credit limits and related commitments | ₽ 0 | ₽ 26.8 |
Commitments, contingencies an_6
Commitments, contingencies and operating risks - ECL allowances (Details) - Expected credit loss allowance / Impairment - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | ₽ (98) | ₽ (84) | |
Changes because of financial instruments (originated or acquired)/derecognized during the reporting period | 22 | (14) | ₽ 27 |
Amounts written off | ₽ 76 | ||
ECL allowance as end of the period | ₽ (98) | (84) | |
Opening balance after application of IFRS 9 | |||
Changes in the ECL allowances | |||
ECL allowance as of beginning of the period | ₽ (111) |
Balances and transactions wit_3
Balances and transactions with related parties (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Associates | ||
Balances and transactions with related parties | ||
Sales to/income from related parties | ₽ 3 | ₽ 121 |
Purchases/expenses from related parties | (525) | (568) |
Amounts owed by related parties | 170 | |
Amounts owed to related parties | (116) | (74) |
Key management personnel | ||
Balances and transactions with related parties | ||
Sales to/income from related parties | 1 | |
Purchases/expenses from related parties | (422) | (288) |
Amounts owed to related parties | (142) | (83) |
Other related parties | ||
Balances and transactions with related parties | ||
Sales to/income from related parties | 9 | 4 |
Purchases/expenses from related parties | (21) | (27) |
Amounts owed by related parties | 8 | 5 |
Amounts owed to related parties | ₽ (9) | ₽ (1) |
Balances and transactions wit_4
Balances and transactions with related parties - Additional information (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balances and transactions with related parties | |||
Benefits of key management and Board of Directors - short-term benefits | ₽ 434 | ₽ 253 | ₽ 120 |
Benefits of key management and Board of Directors - share-based payments | ₽ (12) | ₽ 34 | ₽ 36 |
Risk management - Foreign excha
Risk management - Foreign exchange sensitivity (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
US Dollar | ||
Currency sensitivity | ||
Percentage of reasonably possible increase in exchange rate | 10.00% | 13.00% |
Effect on profit before tax of increase in exchange rate | ₽ 192 | ₽ 147 |
Percentage of reasonably possible decrease in exchange rate | (10.00%) | (11.00%) |
Effect on profit before tax of decrease in exchange rate | ₽ (192) | ₽ (124) |
Euro | ||
Currency sensitivity | ||
Percentage of reasonably possible increase in exchange rate | 10.00% | 13.00% |
Effect on profit before tax of increase in exchange rate | ₽ (2) | ₽ 192 |
Percentage of reasonably possible decrease in exchange rate | (10.00%) | (11.00%) |
Effect on profit before tax of decrease in exchange rate | ₽ 2 | ₽ (162) |
Risk management - Liquidity ris
Risk management - Liquidity risk and capital management (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial liabilities based on contractual undiscounted payments | ||
Minimal required level of capital ratio | 8.00% | |
Debt (Note 17) | ₽ 6,640 | ₽ 1,545 |
Lease liabilities (Note 21) | 1,116 | 1,357 |
Trade and other payables (Note 18) | 29,528 | 27,295 |
Customer accounts and amounts due to banks (Note 19) | 12,337 | 21,963 |
Total | 49,621 | 52,160 |
On demand | ||
Disclosure of financial liabilities based on contractual undiscounted payments | ||
Debt (Note 17) | 1,549 | |
Trade and other payables (Note 18) | 29,528 | 27,295 |
Customer accounts and amounts due to banks (Note 19) | 11,181 | 18,712 |
Total | 42,258 | 46,007 |
Within one year | ||
Disclosure of financial liabilities based on contractual undiscounted payments | ||
Debt (Note 17) | 91 | |
Lease liabilities (Note 21) | 354 | 340 |
Customer accounts and amounts due to banks (Note 19) | 1,120 | 2,807 |
Total | 1,565 | 3,147 |
More than a year | ||
Disclosure of financial liabilities based on contractual undiscounted payments | ||
Debt (Note 17) | 5,000 | 1,545 |
Lease liabilities (Note 21) | 762 | 1,017 |
Customer accounts and amounts due to banks (Note 19) | 36 | 444 |
Total | ₽ 5,798 | ₽ 3,006 |
Risk management - Credit risk p
Risk management - Credit risk provision matrix (Details) - Trade and other receivables (except for advances issued) - RUB (₽) ₽ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Gross carrying amount | ||
Disclosure of provision matrix | ||
Financial assets. | ₽ 7,475 | ₽ 6,071 |
Expected credit loss allowance / Impairment | ||
Disclosure of provision matrix | ||
Financial assets. | ₽ (283) | ₽ (288) |
Current and less than 30 days | ||
Disclosure of provision matrix | ||
Expected credit loss rate | 0.13% | 0.10% |
Current and less than 30 days | Gross carrying amount | ||
Disclosure of provision matrix | ||
Financial assets. | ₽ 6,092 | ₽ 5,143 |
Current and less than 30 days | Expected credit loss allowance / Impairment | ||
Disclosure of provision matrix | ||
Financial assets. | ₽ (8) | ₽ (6) |
30-60 days | ||
Disclosure of provision matrix | ||
Expected credit loss rate | 1.00% | 1.00% |
30-60 days | Gross carrying amount | ||
Disclosure of provision matrix | ||
Financial assets. | ₽ 1,035 | ₽ 490 |
30-60 days | Expected credit loss allowance / Impairment | ||
Disclosure of provision matrix | ||
Financial assets. | ₽ (7) | ₽ (3) |
61-90 days | ||
Disclosure of provision matrix | ||
Expected credit loss rate | 69.00% | 57.00% |
61-90 days | Gross carrying amount | ||
Disclosure of provision matrix | ||
Financial assets. | ₽ 230 | ₽ 362 |
61-90 days | Expected credit loss allowance / Impairment | ||
Disclosure of provision matrix | ||
Financial assets. | ₽ (159) | ₽ (208) |
More than 91 days | ||
Disclosure of provision matrix | ||
Expected credit loss rate | 92.00% | 94.00% |
More than 91 days | Gross carrying amount | ||
Disclosure of provision matrix | ||
Financial assets. | ₽ 118 | ₽ 76 |
More than 91 days | Expected credit loss allowance / Impairment | ||
Disclosure of provision matrix | ||
Financial assets. | ₽ (109) | ₽ (71) |
Risk management - Credit risk c
Risk management - Credit risk concentration (Details) - Trade and other receivables | Dec. 31, 2020 | Dec. 31, 2019 |
Top five counterparties | ||
Disclosure of credit risk exposure | ||
Concentration of credit risks by main counterparties, % from total amount | 54.00% | 43.00% |
Others | ||
Disclosure of credit risk exposure | ||
Concentration of credit risks by main counterparties, % from total amount | 46.00% | 57.00% |
Financial Instruments - Fair va
Financial Instruments - Fair values (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Bonds issued | AC liabilities | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities, carrying amount | ₽ 5,014 | |
Financial liabilities, fair value | 5,134 | |
Debt securities, deposits and long-term loans | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, carrying amount | 6,597 | ₽ 5,384 |
Financial assets, fair value | 6,690 | 5,472 |
Debt securities and deposits | AC assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, carrying amount | 6,383 | 3,825 |
Financial assets, fair value | 6,476 | 3,913 |
Debt securities and deposits | FVOCI assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, carrying amount | 1,294 | |
Financial assets, fair value | 1,294 | |
Long-term loans | AC assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, carrying amount | 196 | 249 |
Financial assets, fair value | 196 | 249 |
Long-term loans | FVPL assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, carrying amount | 18 | 16 |
Financial assets, fair value | ₽ 18 | ₽ 16 |
Financial instruments - Additio
Financial instruments - Additional information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Debt securities | Minimum | |
Disclosure of detailed information about financial instruments | |
Debt instrument interest rate | 7.00% |
Debt securities | Maximum | |
Disclosure of detailed information about financial instruments | |
Debt instrument interest rate | 7.60% |
Long-term loans | Maximum | |
Disclosure of detailed information about financial instruments | |
Financial assets maturity | 6 years |
Long-term loans | Comparable marketable interest rate | Minimum | |
Disclosure of detailed information about financial instruments | |
Measurement input | 0.07 |
Long-term loans | Comparable marketable interest rate | Maximum | |
Disclosure of detailed information about financial instruments | |
Measurement input | 0.35 |
Financial instruments - Fair _2
Financial instruments - Fair value measurement (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments | ||
Transfer of assets out of Level 1 into Level 2 | ₽ 0 | ₽ 0 |
Transfer of assets out of Level 2 into Level 1 | 0 | 0 |
Transfer of liabilities out of Level 1 into Level 2 | 0 | 0 |
Transfer of liabilities out of Level 2 into Level 1 | 0 | 0 |
Transfer of assets into Level 3 | 0 | 0 |
Transfer of assets out of Level 3 | 0 | 0 |
Transfer of liabilities into Level 3 | 0 | 0 |
Transfer of liabilities out of Level 3 | 0 | 0 |
Debt securities and deposits | FVOCI assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, fair value | 1,294 | |
Long-term loans | FVPL assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, fair value | 18 | 16 |
At fair value | Debt securities and deposits | FVOCI assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, fair value | 1,294 | |
At fair value | Debt securities and deposits | FVOCI assets | Quoted prices in active markets (Level 1) | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, fair value | 1,294 | |
At fair value | Long-term loans | FVPL assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, fair value | 18 | 16 |
At fair value | Long-term loans | FVPL assets | Significant unobservable inputs (Level 3) | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, fair value | 18 | 16 |
Fair value disclosed | Bonds issued | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities, fair value | 5,134 | |
Fair value disclosed | Bonds issued | Quoted prices in active markets (Level 1) | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities, fair value | 5,134 | |
Fair value disclosed | Debt securities and deposits | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, fair value | 6,476 | 3,913 |
Fair value disclosed | Debt securities and deposits | Quoted prices in active markets (Level 1) | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, fair value | 6,476 | 3,913 |
Fair value disclosed | Long-term loans | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, fair value | 196 | 249 |
Fair value disclosed | Long-term loans | Significant unobservable inputs (Level 3) | ||
Disclosure of detailed information about financial instruments | ||
Financial assets, fair value | ₽ 196 | ₽ 249 |
Share-based payments (Details)
Share-based payments (Details) | 12 Months Ended | |
Dec. 31, 2020item$ / sharesshares | Dec. 31, 2019$ / shares | |
2015 Restricted Stock Unit Plan (RSU) | ||
Option plans | ||
Number of vesting | item | 3 | |
2015 Restricted Stock Unit Plan (RSU) | Maximum | ||
Option plans | ||
Number of instruments reserved | shares | 2,100,000 | |
Vesting period | 2 years | |
2019 Employee Stock Option Plan (ESOP) | ||
Option plans | ||
Exercise price | $ 16.75 | |
Number of vesting | item | 2 | |
2019 Employee Stock Option Plan (ESOP) | Minimum | ||
Option plans | ||
Exercise price | $ 13.70 | |
2019 Employee Stock Option Plan (ESOP) | Maximum | ||
Option plans | ||
Number of instruments reserved | shares | 3,100,000 | |
Exercise price | $ 17.19 | |
Vesting period | 4 years |
Share-based payments - Changes
Share-based payments - Changes in outstanding options (Details) - Options | 12 Months Ended | 19 Months Ended | 66 Months Ended | 99 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | |
Changes in outstanding options | ||||
Beginning balance | 2,449,498 | |||
Granted | 700,000 | |||
Forfeited | (1,057,438) | |||
Exercised | (389,390) | |||
Ending balance | 1,702,670 | 1,702,670 | 1,702,670 | 1,702,670 |
2012 Employee Stock Option Plan (ESOP) | ||||
Changes in outstanding options | ||||
Beginning balance | 1,153,775 | |||
Granted | 4,128,521 | |||
Forfeited | (1,018,742) | |||
Exercised | (135,033) | |||
2015 Restricted Stock Unit Plan (RSU) | ||||
Changes in outstanding options | ||||
Beginning balance | 365,723 | |||
Granted | 2,035,808 | |||
Forfeited | (38,696) | |||
Exercised | (254,357) | |||
Ending balance | 72,670 | 72,670 | 72,670 | 72,670 |
2019 Employee Stock Option Plan (ESOP) | ||||
Changes in outstanding options | ||||
Beginning balance | 930,000 | |||
Granted | 700,000 | 1,980,000 | ||
Ending balance | 1,630,000 | 1,630,000 | 1,630,000 | 1,630,000 |
Share-based payments - Addition
Share-based payments - Additional information (Details) | 12 Months Ended | |
Dec. 31, 2020Options$ / shares | Dec. 31, 2019Options | |
Option plans | ||
Number of instruments outstanding | 1,702,670 | 2,449,498 |
2012 and 2019 Employee Stock Option Plan (ESOP) | ||
Option plans | ||
Number of instruments outstanding | 1,630,000 | |
Number of instruments unvested | 1,630,000 | |
Weighted average price for share options exercised | $ / shares | $ 13.65 | |
2015 Restricted Stock Unit Plan (RSU) | ||
Option plans | ||
Number of instruments outstanding | 72,670 | 365,723 |
Number of instruments vested | 32,570 | |
Number of instruments unvested | 40,100 | |
Weighted average price for share options exercised | $ / shares | $ 0 |
Share-based payments - Valuatio
Share-based payments - Valuations of share-based payments (Details) | 12 Months Ended | 19 Months Ended | 66 Months Ended | 99 Months Ended |
Dec. 31, 2020USD ($)Options$ / shares | Dec. 31, 2020USD ($)Options | Dec. 31, 2020USD ($)Options | Dec. 31, 2020USD ($)Options | |
Valuations of share-based payments | ||||
Number of options/ RSUs | 700,000 | |||
Minimum | ||||
Valuations of share-based payments | ||||
Forfeiture rate used in valuation models granted | 0.00% | |||
Maximum | ||||
Valuations of share-based payments | ||||
Forfeiture rate used in valuation models granted | 12.00% | |||
2012 Employee Stock Option Plan (ESOP) | ||||
Valuations of share-based payments | ||||
Number of options/ RSUs | 4,128,521 | |||
Weighted average share price | $ / shares | $ 28.10 | |||
Weighted average fair value per option | $ | $ 7.14 | $ 7.14 | $ 7.14 | $ 7.14 |
2012 Employee Stock Option Plan (ESOP) | Minimum | ||||
Valuations of share-based payments | ||||
Dividend yield, percentage | 0.00% | |||
Volatility, percentage | 28.00% | |||
Risk-free interest rate, percentage | 0.29% | |||
Expected term, years | 2 years | |||
2012 Employee Stock Option Plan (ESOP) | Maximum | ||||
Valuations of share-based payments | ||||
Dividend yield, percentage | 5.03% | |||
Volatility, percentage | 49.85% | |||
Risk-free interest rate, percentage | 3.85% | |||
Expected term, years | 4 years | |||
2015 Restricted Stock Unit Plan (RSU) | ||||
Valuations of share-based payments | ||||
Number of options/ RSUs | 2,035,808 | |||
Weighted average share price | $ / shares | $ 15.26 | |||
Weighted average fair value per option | $ | $ 14.56 | $ 14.56 | $ 14.56 | 14.56 |
2015 Restricted Stock Unit Plan (RSU) | Minimum | ||||
Valuations of share-based payments | ||||
Dividend yield, percentage | 0.00% | |||
Volatility, percentage | 40.65% | |||
Risk-free interest rate, percentage | 2.89% | |||
Expected term, years | 0 years | |||
2015 Restricted Stock Unit Plan (RSU) | Maximum | ||||
Valuations of share-based payments | ||||
Dividend yield, percentage | 5.70% | |||
Volatility, percentage | 64.02% | |||
Risk-free interest rate, percentage | 4.34% | |||
Expected term, years | 2 years | |||
2019 Employee Stock Option Plan (ESOP) | ||||
Valuations of share-based payments | ||||
Number of options/ RSUs | 700,000 | 1,980,000 | ||
Weighted average share price | $ / shares | $ 18.45 | |||
Weighted average fair value per option | $ | $ 5.57 | $ 5.57 | $ 5.57 | $ 5.57 |
2019 Employee Stock Option Plan (ESOP) | Minimum | ||||
Valuations of share-based payments | ||||
Dividend yield, percentage | 2.73% | |||
Volatility, percentage | 41.12% | |||
Risk-free interest rate, percentage | 0.24% | |||
Expected term, years | 0 years | |||
2019 Employee Stock Option Plan (ESOP) | Maximum | ||||
Valuations of share-based payments | ||||
Dividend yield, percentage | 8.76% | |||
Volatility, percentage | 65.47% | |||
Risk-free interest rate, percentage | 1.94% | |||
Expected term, years | 4 years |
Share-based payments - Expense
Share-based payments - Expense (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based payments | |||
Expense from equity-settled share-based payment transactions | ₽ 43 | ₽ 464 | ₽ 635 |
Events after the reporting da_2
Events after the reporting date (Details) ₽ in Millions | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020RUB (₽) | Dec. 31, 2019USD ($) | Dec. 31, 2019RUB (₽) | |
Events after the reporting date | ||||
Dividend approved | $ 19,337,438 | ₽ 1,411 | $ 13,660,424 | ₽ 1,011 |