Financial Risk Management and Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure Of Financial Risk Management And Financial Instruments [Line Items]

Summary of Liquidity Position in Terms of Available Cash and Cash Equivalents and Short Term Investments

The Group’s policy is to have a strong liquidity position in terms of available cash and cash equivalents, and short term investments.

	2019		2018
	(in € millions)
Liquidity
Short term investments		692		915
Short term deposits		585		307
Cash at bank and on hand		480		584
Total surplus liquidity		1,757		1,806
Liquidity position		1,757		1,806

Summary of Immediate Impact on Net Loss Before Tax on Exchange Rate

The table below shows the immediate impact on net loss before tax of a 10% strengthening in the closing exchange rate of significant currencies to which the Group had exposure, at December 31, 2019 and 2018

2019	SEK			USD
	(in € millions)
(Increase)/decrease in loss before tax		(13	)		121

2018	SEK		USD
	(in € millions)
(Increase)/decrease in loss before tax		—		74

Summary of Notional Principal of Foreign Currency Exchange Contracts by Hedged Line Item in Statement of Operations

The following table summarizes the notional principal of the foreign currency exchange contracts by hedged line item in the statement of operations as of December 31, 2019:

	Notional amount in foreign currency
	Australian dollar (AUD)		British pound (GBP)		Canadian dollar (CAD)		Norwegian krone (NOK)		Swedish krona (SEK)		U.S. dollar (USD)
	(in millions)
Hedged line item in consolidated statement of operations
Revenue		226		328		194		739		1,221		38
Cost of revenue		176		242		141		499		832		29
Total		402		570		335		1,238		2,053		67

The following table summarizes the notional principal of the foreign currency exchange contracts by hedged line item in the statement of operations as of December 31, 2018:

	Notional amount in foreign currency
	Australian dollar (AUD)		British pound (GBP)		Swedish krona (SEK)		U.S. dollar (USD)
	(in millions)
Hedged line item in consolidated statement of operations
Revenue		187		282		1,112		27
Cost of revenue		143		202		757		21
Total		330		484		1,869		48

Summary of Major Security Type, Financial Assets and Liabilities Measured at Fair Value on Recurring Basis and Category Using Fair Value Hierarchy

The following tables summarize, by major security type, the Group’s financial assets and liabilities that are measured at fair value on a recurring basis, and the category using the fair value hierarchy. The different levels have been defined in Note 2.

Financial assets and liabilities by fair value hierarchy level	Level 1		Level 2		Level 3		December 31, 2019
	(in € millions)
Financial assets at fair value
Short term investments:
Government securities		229		39		—		268
Agency securities		—		5		—		5
Corporate notes		—		263		—		263
Collateralized reverse purchase agreements		—		156		—		156
Derivatives (designated for hedging):
Foreign exchange forwards		—		8		—		8
Long term investments		1,481		—		16		1,497
Total financial assets at fair value by level		1,710		471		16		2,197
Financial liabilities at fair value
Derivatives (not designated for hedging):
Warrants		—		—		98		98
Derivatives (designated for hedging):
Foreign exchange forwards		—		13		—		13
Contingent consideration		—		—		27		27
Total financial liabilities at fair value by level		—		13		125		138

Financial assets and liabilities by fair value hierarchy level	Level 1		Level 2		Level 3		December 31, 2018
	(in € millions)
Financial assets at fair value
Short term investments:
Government securities		164		57		—		221
Agency securities		—		7		—		7
Corporate notes		—		343		—		343
Collateralized reverse purchase agreements		—		344		—		344
Derivatives (designated for hedging):
Foreign exchange forwards		—		6		—		6
Derivatives (not designated for hedging):
Other		—		—		2		2
Long term investments		1,630		—		16		1,646
Total financial assets at fair value by level		1,794		757		18		2,569
Financial liabilities at fair value
Derivatives (not designated for hedging):
Warrants		—		—		333		333
Derivatives (designated for hedging):
Foreign exchange forwards		—		6		—		6
Total financial liabilities at fair value by level		—		6		333		339

Summary of Weightings Applied to Valuation Method

The following weightings, up until the Group’s direct listing, were applied to each valuation method:

	2018	2017
PWERM	50%	50 – 80%
Secondary market transactions	50%	20 – 50%

Summary of Key Assumptions Used to Estimate Fair Value of Ordinary Shares and Contingent Options

The key assumptions used to estimate the fair value of the ordinary shares and contingent options using the PWERM, up until the Group’s direct listing, were as follows:

	2018	2017
Revenue multiple used to estimate enterprise value	3.0	2.2 – 4.6
Discount rate (%)	13.0	13.0 – 19.5
Volatility (%)	32.5 – 35.0	30.0 – 37.5

Summary of Assumption Used to Estimate Fair Value of Warrants

The warrants are valued using a Black-Scholes option-pricing model, which includes inputs determined from models that include the value of the Company’s ordinary shares, as determined above and additional assumptions used to estimate the fair value of the warrants in the option pricing model as follows:

	2019	2018	2017
Expected term (years)	0.5 – 2.5	0.8 – 1.5	0.9 – 1.1
Risk free rate (%)	1.58 – 1.59	2.55 – 2.58	1.71 – 1.76
Volatility (%)	32.5	40.0	30.0
Share price (US$)	149.55	113.50	120.50

Summary of Changes in Warrants Liability

The table below presents the changes in the warrants liability:

		2019			2018			2017
	(in € millions)
At January 1			333			346			34
Issuance of warrant for cash			15			—			9
Issuance of shares upon exercise of, or net settlement of, warrants			(303	)		—			—
Non cash changes recognized in profit or loss
Changes in fair value			35			(39	)		313
Effect of changes in foreign exchange rates			18			26			(10	)
At December 31			98			333			346

Summary of Changes in Contingent Consideration Liability

The table below presents the changes in the contingent consideration liability:

	2019
	(in € millions)
At January 1		—
Initial recognition of contingent consideration included in purchase consideration of acquisition		13
Non cash changes recognized in profit or loss
Changes in fair value		14
At December 31		27

Summary of Changes in Convertible Notes

The table below presents the changes in the Convertible Notes:

	2018			2017
	(in € millions)
At January 1		944			1,106
Non cash changes recognized in profit or loss
Changes in fair value		221			666
Effect of changes in foreign exchange rates		(20	)		(142	)
Issuance of shares upon exchange of Convertible Notes		(1,145	)		(686	)
At December 31		—			944

PWERM

Disclosure Of Financial Risk Management And Financial Instruments [Line Items]

Summary of Weightings Applied to Valuation Method

The PWERM valuations, up until the Group’s direct listing, weighted the different scenarios as follows:

	2018	2017
Market Approach – High Case Public Company	55 – 70%	25 – 40%
Market Approach – Low Case Public Company	28 – 35%	35%
Market Approach – High Case Transaction	0 – 3%	4 – 6%
Market Approach – Low Case Transaction	0 – 2%	4 – 6%
Private Case – Income and Market Approaches	2 – 5%	5 – 30%

TME

Disclosure Of Financial Risk Management And Financial Instruments [Line Items]

Summary of Changes in Investment in TME

The table below presents the changes in the investment in TME:

	2019			2018		2017
	(in € millions)
At January 1		1,630			910		—
Equity issued in exchange for long term investment		—			—		910
Changes in fair value recorded in other comprehensive loss		(149	)		720		—
At December 31		1,481			1,630		910