ACCT homework

4/9/2018 Form F-1

https://www.sec.gov/Archives/edgar/data/1639920/000119312518063434/d494294df1.htm 196/264

Table of Contents

Consolidated statement of operations

for the year ended December 31 (in € millions, except share and per share data) Note 2015 2016 2017 Revenue 4 1,940 2,952 4,090 Cost of revenue 1,714 2,551 3,241

Gross profit 226 401 849

Research and development 136 207 396 Sales and marketing 219 368 567 General and administrative 106 175 264

461 750 1,227

Operating loss (235) (349) (378)

Finance income 9 36 152 118 Finance costs 9 (26) (336) (974) Share in (losses)/earnings of associates and joint ventures — (2) 1

Finance income/(costs) - net 10 (186) (855)

Loss before tax (225) (535) (1,233)

Income tax expense 10 5 4 2

Net loss attributable to owners of the parent (230) (539) (1,235)

Net loss per share attributable to owners of the parent Basic and diluted 11 (1.62) (3.63) (8.14)

Weighted-average ordinary shares outstanding Basic and diluted 11 141,946,600 148,368,720 151,668,769

Pro forma net loss per share attributable to owners of the parent (unaudited) Basic and diluted 11 (4.28)

Pro forma weighted-average ordinary shares outstanding (unaudited) Basic and diluted 11 166,146,849

The accompanying notes are an integral part of these consolidated financial statements.

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4/9/2018 Form F-1

https://www.sec.gov/Archives/edgar/data/1639920/000119312518063434/d494294df1.htm 197/264

Table of Contents

Consolidated statement of comprehensive loss

for the year ended December 31 (in € millions) Note 2015 2016 2017 Net loss attributable to owners of the parent (230) (539) (1,235) Other comprehensive loss: Items that may be subsequently reclassified to consolidated statement of operations (net of tax): Loss in the fair value of available for sale financial assets 22 — (4) (12) Exchange differences on translation of foreign operations — (12) (3)

Other comprehensive loss for the year (net of tax) — (16) (15)

Total comprehensive loss for the year attributable to owners of the parent (230) (555) (1,250)

The accompanying notes are an integral part of these consolidated financial statements.

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4/9/2018 Form F-1

https://www.sec.gov/Archives/edgar/data/1639920/000119312518063434/d494294df1.htm 198/264

Table of Contents

Consolidated statement of financial position

As at December 31 (in € millions)

Note

As at January 1,

2016 2016 2017

Pro forma 2017

(unaudited) Assets Non-current assets Property and equipment 12 81 85 73 Intangible assets including goodwill 13 73 80 162 Investment in associates and joint ventures 25 1 — 1 Long term investment 22 — — 910 Restricted cash and other non-current assets 14 21 23 54 Deferred tax assets 10 4 3 9

180 191 1,209

Current assets Trade and other receivables 15 244 300 360 Income tax receivable 10 3 6 — Short term investments 22 — 830 1,032 Cash and cash equivalents 22 597 755 477 Other current assets 27 18 29

871 1,909 1,898

Total assets 1,051 2,100 3,107

Equity/(Deficit) and liabilities Equity/(Deficit) Share capital 16 — — — — Other paid in capital 16 797 830 2,488 3,432 Other reserves 16 85 122 177 177 Accumulated deficit (653) (1,192) (2,427) (2,427)

Equity/(Deficit) attributable to owners of the parent 229 (240) 238 1,182

Non-current liabilities Convertible notes 18, 22 — 1,106 944 — Accrued expenses and other liabilities 20 16 10 56 56 Provisions 21 8 4 6 6 Deferred tax liabilities 10 — — 3 3

24 1,120 1,009 65

Current liabilities Trade and other payables 19 119 201 341 341 Income tax payable 10 5 6 9 9 Deferred revenue 4 92 149 216 216 Accrued expenses and other liabilities 20 485 673 881 881 Provisions 21 15 57 59 59 Derivative liabilities 22 82 134 354 354

798 1,220 1,860 1,860

Total liabilities 822 2,340 2,869 1,925

Total equity/(deficit) and liabilities 1,051 2,100 3,107 3,107

The accompanying notes are an integral part of these consolidated financial statements.

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4/9/2018 Form F-1

https://www.sec.gov/Archives/edgar/data/1639920/000119312518063434/d494294df1.htm 199/264

Table of Contents

Consolidated statement of changes in equity/(deficit)

(in € millions, except share data)

Note

Number of ordinary

shares Share

capital

Other paid in capital

Other reserves

Accumulated deficit

Equity/ (Deficit) attributable to

owners of the parent

Balance at January 1, 2015 135,792,600 — 404 55 (423) 36

Loss for the year — — — (230) (230) Issuance of shares upon exercise of stock options and

restricted stock units 16 822,960 — 6 — — 6 Issuance of shares, net of costs 16 9,484,880 — 387 — — 387 Share-based payments 17 — — 29 — 29 Income tax impact associated with share-based

payments 10 — — 1 — 1

Balance at December 31, 2015 146,100,440 — 797 85 (653) 229

Loss for the year — — — (539) (539) Other comprehensive loss — — (16) — (16) Issuance of shares upon exercise of stock options and

restricted stock units 16 3,823,560 — 33 — — 33 Share-based payments 17 — — 53 — 53

Balance at December 31, 2016 149,924,000 — 830 122 (1,192) (240)

Loss for the year — — — (1,235) (1,235) Other comprehensive loss — — (15) — (15) Issuance of shares upon exercise of stock options and

restricted stock units 16 1,723,080 — 29 — — 29 Issuance of shares related to business combinations 5 442,040 — 33 — — 33 Issuance of restricted share awards related to business

combination 5 61,880 — — — — — Issuance of shares upon exchange of Convertible Notes 22 6,554,960 — 686 — — 686 Issuance of shares in exchange for long term

investment 22 8,552,440 — 910 — — 910 Share-based payments 17 — — 67 — 67 Income tax impact associated with share-based

payments 10 — — 3 — 3

Balance at December 31, 2017 167,258,400 — 2,488 177 (2,427) 238

The accompanying notes are an integral part of these consolidated financial statements.

F-6

4/9/2018 Form F-1

https://www.sec.gov/Archives/edgar/data/1639920/000119312518063434/d494294df1.htm 200/264

Table of Contents

Consolidated statement of cash flows

for the year ended December 31 (in € millions) Note 2015 2016 2017 Operating activities Net loss (230) (539) (1,235) Adjustments to reconcile net loss to net cash flows

Depreciation of property and equipment 12 26 32 46 Amortization of intangible assets 13 4 6 8 Share-based payments expense 17 28 53 65 Impairment loss on trade receivables 15 — 15 — Finance income 9 (36) (152) (118) Finance costs 9 26 336 974 Income tax expense 10 5 4 2 Share in losses/(earnings) of associates and joint ventures — 2 (1) Net foreign exchange (gains)/losses (33) 43 (3)

Changes in working capital: Increase in trade receivables and other assets (121) (60) (112) Increase in trade and other liabilities 251 245 447 Increase in deferred revenue 25 77 77 Increase in provisions 20 38 8

Interest received 2 5 19 Interest paid (1) — — Income tax (received)/paid (4) (4) 2

Net cash flows (used in)/from operating activities (38) 101 179

Investing activities Business combinations, net of cash acquired 5 (7) (7) (49) Investment in associates and joint ventures 25 (1) (1) — Purchases of property and equipment 12 (44) (27) (36) Purchases of intangibles 13 (5) (3) (10) Purchases of short term investments 22 — (1,397) (1,386) Sales and maturities of short term investments 22 — 609 1,080 Change in restricted cash 14 (10) (1) (34)

Net cash flows used in investing activities (67) (827) (435)

Financing activities Finance lease payments (4) (5) (4) Proceeds from issuance of Convertible Notes, net of costs 18 — 861 — Proceeds from issuance of new shares, net of costs 16 474 — — Proceeds from issuance of warrants 16 — 27 9 Proceeds from exercise of share options 17 6 33 29

Net cash flows from financing activities 476 916 34

Net increase/(decrease) in cash and cash equivalents 371 190 (222) Cash and cash equivalents at January 1 22 206 597 755 Net foreign exchange gains/(losses) on cash and cash equivalents 20 (32) (56)

Cash and cash equivalents at December 31 22 597 755 477

Supplemental disclosure of cash flow information Non-cash investing and financing activities

Issuance of shares for business combinations 5 — — 33 Purchases of property and equipment in trade and other payables 12 1 1 5 Non-cash share-based payments related to internal development costs 13 1 — 2 Issuance of shares upon exchange of Convertible Notes 22 — — 686 Issuance of shares in exchange for long term investment 22 — — 910

The accompanying notes are an integral part of these consolidated financial statements.

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