Company: KYIV
Filing Date: 2025-03-31
Form Type: DRS
Source: 0001213900-25-026261
Chunk: 488

Company: Kyivstar Group Ltd.
Filing Date: 2025-03-31
Form: DRS
Chunk 488
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-48

VEON Holdings B.V.
INVESTING ACTIVITIES OF THE GROUP (cont.) 9IMPAIRMENT OF ASSETS (cont.) Operating margin The Company estimates operating margin on a pre -IFRS16 basis (including lease expenses/payments), divided by Total Operating Revenue for each future year. The forecasted operating margin is based on the budget and forecast calculations and assumes cost optimization initiatives which are part of on -goingoperations, as well as regulatory and technological changes known to date, such as telecommunication license issues and price regulation among others. Segment information in Note 2 is on a post -IFRS16 basis. CAPEX CAPEX is defined as purchases of property and equipment and intangible assets excluding licenses, goodwill and right -of -useassets. The cash flow forecasts for capital expenditures are based on the budget and forecast calculations and include the network roll -outsplans and license requirements. The cash flow forecasts for license and spectrum payments for each operating company for the initial five years include amounts for expected renewals and newly available spectrum. Beyond that period, a long -runcost related to spectrum and license payments is assumed. Payments for right -of -useassets are considered in the operating margin as described above. SOURCE OF ESTIMATION UNCERTAINTY There are significant variations with respect to growth, mobile penetration, ARPU, market share and similar parameters, resulting in differences in operating margins. The future development of operating margins is important in the Group’s impairment assessments. 10PROPERTY AND EQUIPMENT The following table summarizes the movement in the net book value of property and equipment for the year ended December 31:

| Net book value                                   
 As of January 1, 2023                            |     | Telecommunications 
          equipment 
                252 |   |     |         Land, 
 buildings and 
 constructions 
            30 |   |     | Office and 
      other 
  equipment 
         19 |   |     |     Equipment 
 not installed 
    and assets 
         under 
  construction 
            64 |   |     | Right-of-use 
       assets 
          205 |   |     | Total 
   570 |   |
|:-------------------------------------------------|:----|-------------------:|:--|:----|--------------:|:--|:----|-----------:|:--|:----|--------------:|:--|:----|-------------:|:--|:----|------:|:--|
| Additions