Altice Europe N : International - Q3 2020 Consolidated Financial Statements

Altice International S.à r.l.

Condensed Interim Consolidated

Financial Statements

As of and for the three and nine-month periods ended

September 30, 2020

Table of Contents

Consolidated Statement of Income	1
Consolidated Statement of Comprehensive Income	1
Consolidated Statement of Financial Position	2
Consolidated Statement of Changes in Equity	3
Consolidated Statement of Cash Flows	4
Notes to the Condensed Interim Consolidated Financial Statements	5
1	About Altice International S.à r.l. and the Altice Group	5
2	Accounting policies	5
3	Significant events	7
4	Segment reporting	8
5	Goodwill	14
6	Financial assets	14
7	Other non-current assets	15
8	Shareholders' equity	15
9	Borrowings, other financial liabilities and lease liabilities	16
10	Fair value of financial assets and liabilities	21
11	Taxation	23
12	Net finance costs	24
13	Contractual obligations and commercial commitments	24
14	Litigation	24
15	Going concern	27

Altice International S.à r.l.

Condensed Interim Consolidated Financial Statements

Consolidated Statement of Income	Notes	Three months ended	Nine months ended
		September 30, 2020	September 30, 2019	September 30, 2020	September 30, 2019
(€m)			(Unaudited & not
		reviewed)
Revenues	4	1,021.2	1,028.8	2,956.4	2,997.4
Purchasing and subcontracting costs	4	(257.7)	(251.7)	(724.6)	(724.8)
Other operating expenses	4	(215.5)	(231.8)	(635.6)	(669.5)
Staff costs and employee benefits	4	(119.4)	(115.8)	(349.4)	(348.7)
Depreciation, amortization and impairment	4	(297.0)	(306.5)	(905.3)	(917.8)
Other (expenses) and income	4	(0.4)	(8.2)	66.1	(303.4)
Operating profit		131.2	114.8	407.6	33.2

Interest relative to gross financial debt Realized and unrealized (losses)/gains on derivative instruments linked to financial debt

Other financial expenses Finance income

Net result on extinguishment and remeasurement of financial liabilities

12	(105.2)	(149.8)	(432.1)	(453.4)
12	(164.7)	153.4	(51.1)	218.9
12	(17.3)	(102.6)	(123.0)	(92.0)
12	164.5	43.1	119.8	111.6
12	(15.0)	-	439.0	-

Finance (costs)/income, net			(137.7)	(55.9)	(47.4)	(214.9)
Share of (loss)/earnings of associates			4.3	(0.1)	2.5	(0.5)
(Loss)/profit before income tax			(2.2)	58.8	362.7	(182.2)
Income tax (expense)/benefit	11		(23.8)	(11.7)	(9.9)	56.8
(Loss)/profit for the period			(26.0)	47.1	352.8	(125.4)
Attributable to equity holders of the parent			(39.1)	47.7	335.2	(123.5)
Attributable to non‑controlling interests			13.1	(0.6)	17.6	(1.9)
Consolidated Statement of Comprehensive			Three months ended	Nine months ended
Income
		September 30, 2020		September 30, 2019	September 30, 2020	September 30, 2019
(€m)					(Unaudited & not
				reviewed)

(Loss)/profit for the period

Other comprehensive income/(loss)

Items that may be reclassified subsequently to profit or loss Exchange differences on translating foreign operations

Cash flow hedges - effective portion of changes in fair value

Cash flow hedges - reclassified to profit or loss

Fair value of financial assets through OCI Related taxes

Items that are not reclassified to profit or loss

Actuarial (loss)/gain

Related taxes

(26.0)	47.1	352.8	(125.4)
(19.8)	10.1	(9.3)	(38.1)
(11.7)	27.4	26.9	32.3
3.6	1.6	100.0	4.3
(1.0)	0.4	(1.0)	(0.3)
2.0	(7.1)	(42.0)	(9.1)
(26.9)	32.4	74.6	(10.9)
(18.7)	(13.1)	3.5	(58.7)
3.9	3.9	(0.8)	18.2
(14.8)	(9.2)	2.7	(40.5)

Total other comprehensive (loss)/gain	(41.7)	23.2	77.3	(51.4)
Total comprehensive (loss)/profit for the	(67.7)	70.3	430.1	(176.8)
period
Attributable to equity holders of the parent	(80.1)	69.7	413.7	(177.0)
Attributable to non‑controlling interests	12.4	0.6	16.4	0.2

The accompanying notes on pages 5 to 28 form an integral part of these condensed interim consolidated financial statements.

1

Altice International S.à r.l.

Condensed Interim Consolidated Financial Statements

	Notes	As of	As of
(€m)		September 30, 2020	December 31, 2019
Non‑current assets
Goodwill	5	3,151.9	3,247.9
Intangible assets		1,215.8	1,438.1
Property, plant & equipment		3,435.3	3,521.3
Right-of-use assets		821.4	871.3
Contract costs		99.8	104.2
Investment in associates		14.7	16.0
Financial assets	6	3,108.9	1,805.7
Deferred tax assets		139.6	67.2
Other non-current assets	7	539.0	191.8
Total non‑current assets		12,526.4	11,263.5
Current assets
Inventories		120.5	130.9
Contract assets		33.6	36.5
Trade and other receivables		1,009.2	1,023.6
Current tax assets		27.1	50.9
Financial assets	6	181.1	38.6
Cash and cash equivalents		266.6	395.5
Restricted cash		36.3	37.5
		1,674.4	1,713.5
Assets classified as held for sale		1.8	118.9
Total current assets		1,676.2	1,832.4
Total assets		14,202.6	13,095.9
Equity
Issued capital	8.1	309.3	309.3
Other reserves	8.2	(177.5)	(256.0)
Accumulated gains/(losses)	8	857.5	(583.1)
Equity attributable to equity holders of the parent		989.3	(529.8)
Non‑controlling interests	3.3	(1.4)	(12.3)
Total equity		987.9	(542.1)
Non‑current liabilities
Long term borrowings, financial liabilities and related hedging instruments	9	7,480.7	8,155.8
Other financial liabilities	9.7	1,366.9	690.3
Non-current lease liabilities	9.7	821.7	840.3
Provisions		902.9	977.5
Deferred tax liabilities		85.1	86.2
Non-current contract liabilities		56.1	61.6
Other non-current liabilities		33.5	31.9
Total non‑current liabilities		10,746.9	10,843.6
Current liabilities
Short-term borrowings, financial liabilities and related hedging instruments	9	30.1	288.4
Other financial liabilities	9.7	604.4	676.5
Current lease liabilities	9.7	85.3	82.8
Trade and other payables		1,341.3	1,412.7
Contract liabilities		133.6	117.5
Current tax liabilities		172.7	115.5
Provisions		86.0	78.4
Other current liabilities		14.3	22.4
		2,467.7	2,794.2
Liabilities directly associated with assets classified as held for sale		0.1	0.2
Total current liabilities		2,467.8	2,794.4
Total liabilities		13,214.7	13,638.0
Total equity and liabilities		14,202.6	13,095.9

The accompanying notes on pages 5 to 28 form an integral part of these condensed interim consolidated financial statements.

2