6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

July 20, 2020

Commission File Number 001-35893

 

 

QIWI plc

 

 

Kennedy 12,

Kennedy Business Centre, 2nd Floor,

P.C. 1087, Nicosia, Cyprus

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒                Form 40-F  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐                No  ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

THIS REPORT ON FORM 6-K IS INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-235239) AND THE REGISTRATION STATEMENTS ON FORM S-8 (FILE NO. 333-190918; FILE NO. 333-212441) OF QIWI PLC AND IN THE OUTSTANDING PROSPECTUS CONTAINED IN SUCH REGISTRATION STATEMENTS.

 

 

 


 

EXPLANATORY NOTE

QIWI plc

On July 13, 2020 QIWI plc (“QIWI or the “Company) completed the previously announced sale of its SOVEST consumer lending business to Sovcombank. Following the completion of the sale, QIWI will not retain any ownership interest in SOVEST.

Attached hereto as Exhibit 99.1, are the unaudited pro forma financial statements of the Registrant, giving effect to the sale.


EXHIBITS

 

99.1    Unaudited pro forma financial information


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    QIWI Plc
Date: July 20, 2020     By:  

/s/ Varvara Kiseleva

    Name: Varvara Kiseleva
    Title: Interim Chief Financial Officer

 

EX-99.1

Exhibit 99.1

UNAUDITED PRO FORMA FINANCIAL INFORMATION

On July 13, 2020, QIWI completed the previously announced sale of its SOVEST consumer lending business to Sovcombank. The unaudited pro forma financial statements have applied pro forma adjustments to the Company’s historical consolidated financial statements prepared in accordance with the International Financial Reporting Standards as published by the International Accounting Standards Board and give effect to the sale of SOVEST. The unaudited pro forma statements of operations for the fiscal years ended December 31, 2017, December 31, 2018, December 31, 2019 and for the three months ended March 31, 2020 assume that the sale occurred as of the beginning of those periods. The unaudited pro forma balance sheet as of March 31, 2020 assumes that the sale occurred on March 31, 2020.

The unaudited pro forma financial statements are presented on the basis of currently available information and reflect certain assumptions and adjustments that management believes are reasonable under the circumstances. These unaudited pro forma financial statements are intended for informational purposes only and are not necessarily indicative of what the Company’s results of operations or financial condition would have been had the sale been completed on the dates assumed. In addition, they are not necessarily indicative of the Company’s future results of operations or financial condition. Beginning in the second quarter of fiscal year 2020, the historical financial results of the consolidated operations of SOVEST for the periods prior to the sale will be reflected in the Company’s consolidated financial statements as discontinued operations.

The unaudited pro forma financial statements should be read in conjunction with (i) the accompanying notes to the unaudited pro forma financial statements and (ii) the audited consolidated financial statements and accompanying notes included thereto in the Company’s Annual Report on Form 20-F for the year ended December 31, 2019 filed with the SEC on March 24, 2020.


QIWI plc

Unaudited Pro Forma Condensed Consolidated Statement of Operations

for the Year Ended December 31, 2017

(in RUB millions)

 

     Company historical     SOVEST Sale
Pro Forma
Adjustments
    Pro forma  
           (a)        
     RUB     RUB     RUB  

Revenue:

     20,897       (105     20,792  

Payment processing fees

     17,265       —         17,265  

Interest revenue calculated using the effective interest rate

     1,052       (100     952  

Fees from inactive accounts and unclaimed payments

     1,310       —         1,310  

Other revenue

     1,270       (5     1,265  

Operating costs and expenses:

     (16,906     2,864       (14,042

Cost of revenue (exclusive of items shown separately below)

     (7,704     95       (7,609

Selling, general and administrative expenses

     (3,796     1,723       (2,073

Personnel expenses

     (4,286     792       (3,494

Depreciation and amortization

     (796     32       (764

Credit loss expense

     (220     222       2  

Impairment of intangible assets

     (104     —         (104

Profit from operations

     3,991       2,759       6,750  

Share of gain/(loss) of an associate and a joint venture

     (41     —         (41

Other income and expenses, net

     257       —         257  

Foreign exchange gain

     (373     —         (373

Foreign exchange loss

     6       —         6  

Interest income and expenses, net

     (41     —         (41

Profit before tax

     3,840       2,759       6,599  

Income tax expense

     (698     (540     (1,238

Net profit

     3,142       2,219       5,361  

Attributable to:

      

Equity holders of the parent

     3,114       2,219       5,333  

Non-controlling interests

     28       —         28  


QIWI plc

Unaudited Pro Forma Condensed Consolidated Statement of Operations

for the Year Ended December 31, 2018

(in RUB millions)

 

     Company historical     SOVEST Sale
Pro Forma
Adjustments
    Pro forma  
           (a)        
     RUB     RUB     RUB  

Revenue:

     30,610       (558     30,052  

Payment processing fees

     23,694       —         23,694  

Interest revenue calculated using the effective interest rate

     1,854       (197     1,657  

Fees from inactive accounts and unclaimed payments

     1,419       —         1,419  

Other revenue

     3,643       (361     3,282  

Operating costs and expenses:

     (26,161     3,927       (22,234

Cost of revenue (exclusive of items shown separately below)

     (10,953     173       (10,780

Selling, general and administrative expenses

     (6,099     1,821       (4,278

Personnel expenses

     (7,748     1,410       (6,338

Depreciation and amortization

     (864     45       (819

Credit loss expense

     (474     478       4  

Impairment of intangible assets

     (23     —         (23

Profit from operations

     4,449       3,369       7,818  

Share of gain/(loss) of an associate and a joint venture

     (46     —         (46

Other income and expenses, net

     (181     —         (181

Foreign exchange gain

     1,311       —         1,311  

Foreign exchange loss

     (1,049     —         (1,049

Interest income and expenses, net

     17       —         17  

Profit before tax

     4,501       3,369       7,870  

Income tax expense

     (875     (663     (1,538

Net profit

     3,626       2,706       6,332  

Attributable to:

      

Equity holders of the parent

     3,584       2,706       6,290  

Non-controlling interests

     42       —         42  


QIWI plc

Unaudited Pro Forma Condensed Consolidated Statement of Operations

for the Year Ended December 31, 2019

(in RUB millions)

 

     Company historical     SOVEST Sale
Pro Forma
Adjustments
    Pro forma  
           (a)        
     RUB     RUB     RUB  

Revenue:

     39,336       (1,575     37,761  

Payment processing fees

     30,736       —         30,736  

Interest revenue calculated using the effective interest rate

     3,646       (424     3,222  

Fees from inactive accounts and unclaimed payments

     1,806       —         1,806  

Other revenue

     3,148       (1,151     1,997  

Operating costs and expenses:

     (32,896     4,122       (28,774

Cost of revenue (exclusive of items shown separately below)

     (16,160     236       (15,924

Selling, general and administrative expenses

     (6,213     1,751       (4,462

Personnel expenses

     (7,765     1,445       (6,320

Depreciation and amortization

     (1,324     44       (1,280

Credit loss expense

     (642     646       4  

Impairment of intangible assets

     (792     —         (792

Profit from operations

     6,440       2,547       8,987  

Share of gain/(loss) of an associate and a joint venture

     258       —         258  

Other income and expenses, net

     (91     —         (91

Foreign exchange gain

     905       —         905  

Foreign exchange loss

     (1,077     —         (1,077

Interest income and expenses, net

     (56     2       (54

Profit before tax

     6,379       2,549       8,928  

Income tax expense

     (1,492     (503     (1,995

Net profit

     4,887       2,046       6,933  

Attributable to:

      

Equity holders of the parent

     4,832       2,046       6,878  

Non-controlling interests

     55       —         55  


QIWI plc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

for the Three Months Ended March 31, 2020

(in RUB millions)

 

     Company historical     SOVEST Sale
Pro Forma
Adjustments
    Pro forma  
           (a)        
     RUB     RUB     RUB  

Revenue:

     10,610       (640     9,970  

Payment processing fees

     7,935       —         7,935  

Interest revenue calculated using the effective interest rate

     1,060       (190     870  

Fees from inactive accounts and unclaimed payments

     490       —         490  

Other revenue

     1,125       (450     675  

Operating costs and expenses:

     (8,720     1,302       (7,418

Cost of revenue (exclusive of items shown separately below)

     (4,350     74       (4,276

Selling, general and administrative expenses

     (1,228     335       (887

Personnel expenses

     (2,283     372       (1,917

Depreciation and amortization

     (319     19       (300

Credit loss expense

     (520     502       (18

Impairment of intangible assets

     (20     —         (20

Profit from operations

     1,890       662       2,552  

Share of gain/(loss) of an associate and a joint venture

     132       —         132  

Other income and expenses, net

     (16     —         (16

Foreign exchange gain

     1,434       —         1,434  

Foreign exchange loss

     (1,397     —         (1,397

Interest income and expenses, net

     (32     2       (30

Profit before tax

     2,011       664       2,675  

Income tax expense

     (412     (136     (548

Net profit

     1,599       528       2,127  

Attributable to:

      

Equity holders of the parent

     1,587       528       2,115  

Non-controlling interests

     12       —         12  


QIWI plc.

Unaudited Pro Forma Condensed Consolidated Balance Sheet

As of March 31, 2020

(in RUB millions)

 

     Company historical      SOVEST Sale
Pro Forma
Adjustments
    Pro forma  
            (b)        
     RUB      RUB     RUB  

Assets

       

Non-current assets

       

Property and equipment

     2,442          2,442  

Goodwill and other intangible assets

     11,232          11,232  

Investments in associates

     1,250          1,250  

Long-term debt securities and deposits

     5,280          5,280  

Long-term loans

     264          264  

Other non-current assets

     72          72  

Deferred tax assets

     250          250  
  

 

 

      

 

 

 

Total non-current assets

     20,790          20,790  
  

 

 

      

 

 

 

Current assets

       

Trade and other receivables

     4,588          4,588  

Short-term loans

     12,150        (8,532     3,618  

Short-term debt securities and deposits

     1,166          1,166  

Prepaid income tax

     279          279  

Other current assets

     1,097          1,097  

Cash and cash equivalents

     32,240        7,737       39,977  
  

 

 

    

 

 

   

 

 

 

Total current assets

     51,520        (795     50,725  
  

 

 

    

 

 

   

 

 

 

Assets held for sale

     58          58  
  

 

 

    

 

 

   

 

 

 

Total assets

     72,368        (795     71,573  
  

 

 

    

 

 

   

 

 

 

Equity and liabilities

       

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

     2,596          2,596  

Retained earnings

     11,132        (922     10,210  

Translation reserve

     464          464  
  

 

 

    

 

 

   

 

 

 

Total equity attributable to equity holders of the parent

     28,137        (922     27,215  
  

 

 

    

 

 

   

 

 

 

Non-controlling interests

     40          40  
  

 

 

    

 

 

   

 

 

 

Total equity

     28,177        (922     27,255  
  

 

 

    

 

 

   

 

 

 


Non-current liabilities

       

Long term debt

     1,863          1,863  

Long-term lease liability

     1,142          1,142  

Long-term customer accounts

     438          438  

Other non-current liabilities

     68          68  

Deferred tax liabilities

     724          724  
  

 

 

      

 

 

 

Total non-current liabilities

     4,235          4,235  
  

 

 

      

 

 

 

Current liabilities

       

Trade and other payables

     24,225        127       24,352  

Customer accounts and amounts due to banks

     13,200          13,200  

Dividends payable

     1,072          1,072  

Short-term lease liability

     397          397  

VAT and other taxes payable

     174          174  

Other current liabilities

     888          888  
  

 

 

    

 

 

   

 

 

 

Total current liabilities

     39,956        127       40,083  
  

 

 

    

 

 

   

 

 

 

Total equity and liabilities

     72,368        (795     71,573  
  

 

 

    

 

 

   

 

 

 


Notes to the Unaudited Pro Forma Financial Statements

 

  (a)

The SOVEST Sale Pro Forma Adjustments column in the unaudited pro forma information represents the historical financial results of SOVEST operations disposed of through the sale to Sovcombank.

  (b)

The SOVEST Sale Pro Forma Adjustments column in the unaudited pro forma information represents the sale of SOVEST assets to Sovcombank, employee termination liabilities created and to be paid by Sovcombank (limited up to RUB250 million), and estimated total proceeds to be received from Sovcombank. Since the pro forma balance sheet is prepared as if the transaction occurred as of March 31, 2020, the cash balance is adjusted based on the assets existed as of that date.