vivoitr2q17_6k.htm - Generated by SEC Publisher for SEC Filing

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of July, 2017

Commission File Number: 001-14475



TELEFÔNICA BRASIL S.A.
(Exact name of registrant as specified in its charter)

 

TELEFONICA BRAZIL S.A.  
(Translation of registrant’s name into English)

 

Av. Eng° Luís Carlos Berrini, 1376 -  28º andar
São Paulo, S.P.
Federative Republic of Brazil
(Address of principal executive office)


 

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

X

 

Form 40-F

 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes

 

 

No

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes

 

 

No

 

 

 

 

 
 

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

 

 

Telefônica Brasil S.A.

Quarterly Information (ITR)

at June 30, 2017

and report on review of quarterly and semester information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

(A free translation of the original in Portuguese)

 

Report on review of quarterly information

 

 

To the Board of Directors and Stockholders

Telefônica Brasil S.A.

 

 

Introduction

 

We have reviewed the accompanying parent company and consolidated interim accounting information of Telefônica Brasil S.A. ("Company"), included in the Quarterly Information Form (ITR) for the quarter ended June 30, 2017, comprising the balance sheet at that date and the statements of income and comprehensive income for the quarter and six-month periods then ended, and changes in equity and cash flows for the six-month period then ended, and a summary of significant accounting policies and other explanatory information.

 

Management is responsible for the preparation of the parent company interim accounting information in accordance with the accounting standard CPC 21 - "Interim Financial Reporting", of the Brazilian Accounting Pronouncements Committee (CPC), and of the consolidated interim accounting information in accordance with CPC 21 and International Accounting Standard (IAS) 34 - "Interim Financial Reporting" issued by the International Accounting Standards Board (IASB), as well as the presentation of this information in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

 

 

Scope of review

 

We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 - "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" and ISRE 2410 - "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently did not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

 

Conclusion on the parent company interim information

 

Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company interim accounting information included in the Quarterly Information referred to above has not been prepared, in all material respects, in accordance with CPC 21 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM.

 

 

Conclusion on the consolidated interim information

 

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim accounting information included in the Quarterly Information referred to above has not been prepared, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM.

 

 

 

 

 

 

 


 
 

(A free translation of the original in Portuguese)

 

 

Other matters

 

Statement of value added

 

We have also reviewed the parent company and consolidated statements of value added for the six-month period ended June 30, 2017. These statements are the responsibility of the Company's management and are required to be presented in accordance with standards issued by the CVM applicable to the preparation of Quarterly Information (ITR) and are considered supplementary information under IFRS, which do not require the presentation of the statement of value added. These statements have been submitted to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that they have not been prepared, in all material respects, in a manner consistent with the parent company and consolidated interim accounting information taken as a whole.

 

 

Audit and review of prior-year information

 

The Quarterly Information Form (ITR) mentioned in the first paragraph includes accounting information, presented for comparison purposes, related to the statements of income and comprehensive income for the quarter and six-month periods ended June 30,2016, and the statements of changes in equity, cash flows and value added for the six-month period then ended, obtained from the Quarterly Information Form (ITR) for that quarter, and also to the balance sheet as at December 31, 2016, obtained from the financial statements at December 31, 2016. The review of the Quarterly Information (ITR) for the quarter ended June 30, 2016 and the audit of the financial statements for the year ended December 31, 2016 were conducted by other independent auditors, whose unqualified review and audit reports were dated July 25, 2016 and February 17, 2017, respectively.

 

 

São Paulo, July 24, 2017

 

 

 

PricewaterhouseCoopers

Auditores Independentes

CRC 2SP000160/O-5

 

 

 

Estela Maris Vieira de Souza

Contadora CRC 1RS046957/O-3 "S" SP

 

 


 
 

(A free translation of the original in Portuguese)

 

TELEFÔNICA BRASIL S.A.

Balance Sheets

At June 30, 2017 and December 31, 2016

(In thousands of reais)

 

 

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

 

 

Company

 

Consolidated

ASSETS

Note

 

06.30.17

 

12.31.16

 

06.30.17

 

12.31.16

 

LIABILITIES AND EQUITY

Note

 

06.30.17

 

12.31.16

 

06.30.17

 

12.31.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

20,323,772

 

17,482,265

 

21,251,020

 

18,398,995

 

Current liabilities

 

 

22,096,507

 

20,280,286

 

22,203,665

 

20,438,575

Cash and cash equivalents

3

 

6,564,821

 

4,675,627

 

7,447,061

 

5,105,110

 

Personnel, social charges and benefits

13

 

723,793

 

746,798

 

737,298

 

760,643

Trade accounts receivable, net

4

 

8,386,679

 

8,282,685

 

8,773,857

 

8,701,688

 

Trade accounts payable

14

 

7,157,834

 

7,539,395

 

7,107,223

 

7,611,246

Inventories, net

5

 

359,956

 

368,151

 

389,867

 

410,413

 

Taxes, charges and contributions

15

 

1,679,310

 

1,698,334

 

1,822,688

 

1,770,731

Dividends and interest on equity

16

 

384,588

 

-

 

-

 

-

 

Dividends and interest on equity

16

 

4,569,695

 

2,195,031

 

4,569,695

 

2,195,031

Taxes recoverable

6.a

 

2,867,811

 

2,952,622

 

2,914,299

 

3,027,230

 

Provisions

17

 

1,288,335

 

1,183,623

 

1,288,335

 

1,183,623

Judicial deposits and garnishments

7

 

317,429

 

302,349

 

317,545

 

302,424

 

Deferred revenue

18

 

467,676

 

428,488

 

468,236

 

429,853

Prepaid expenses

8

 

868,188

 

336,508

 

882,434

 

343,092

 

Loans and financing

19

 

2,053,066

 

2,542,975

 

2,053,066

 

2,542,975

Derivative financial instruments

30

 

86,191

 

68,943

 

86,191

 

68,943

 

Debentures

19

 

3,487,108

 

2,120,504

 

3,487,108

 

2,120,504

Other assets

9

 

488,109

 

495,380

 

439,766

 

440,095

 

Derivative financial instruments

30

 

107,026

 

183,212

 

107,026

 

183,212

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

20

 

562,664

 

1,641,926

 

562,990

 

1,640,757

Non-current assets

 

 

83,844,548

 

84,475,240

 

83,105,458

 

83,667,264

 

 

 

 

 

 

 

 

 

 

 

Short-term investments pledged as collateral

 

 

82,002

 

78,153

 

82,024

 

78,166

 

Non-current liabilities

 

 

13,414,453

 

12,432,800

 

13,495,453

 

12,383,265

Trade accounts receivable, net

4

 

172,151

 

200,537

 

278,311

 

305,411

 

Personnel, social charges and benefits

13

 

16,635

 

11,016

 

16,635

 

11,016

Taxes recoverable

6.a

 

447,682

 

474,240

 

450,499

 

476,844

 

Trade accounts payable

14

 

-

 

71,907

 

-

 

71,907

Deferred taxes

6.b

 

-

 

-

 

134,649

 

27,497

 

Taxes, charges and contributions

15

 

19,629

 

20,996

 

46,554

 

49,131

Judicial deposits and garnishments

7

 

6,183,541

 

5,974,733

 

6,260,663

 

6,049,142

 

Deferred taxes

6.b

 

583,967

 

88,695

 

583,967

 

-

Prepaid expenses

8

 

27,761

 

35,340

 

32,454

 

36,430

 

Provisions

17

 

6,872,822

 

6,591,493

 

6,929,184

 

6,625,638

Derivative financial instruments

30

 

100,185

 

144,050

 

100,185

 

144,050

 

Deferred revenue

18

 

446,593

 

511,786

 

446,593

 

511,786

Other assets

9

 

75,909

 

53,363

 

78,409

 

55,565

 

Loans and financing

19

 

2,748,419

 

3,126,792

 

2,748,419

 

3,126,792

Investments

10

 

1,454,815

 

1,407,155

 

94,558

 

85,745

 

Debentures

19

 

2,133,423

 

1,433,803

 

2,133,423

 

1,433,803

Property, plant and equipment, net

11

 

31,731,198

 

31,837,549

 

31,811,114

 

31,924,918

 

Derivative financial instruments

30

 

2,152

 

1,404

 

2,152

 

1,404

Intangible assets, net

12

 

43,569,304

 

44,270,120

 

43,782,592

 

44,483,496

 

Other liabilities

20

 

590,813

 

574,908

 

588,526

 

551,788

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

68,657,360

 

69,244,419

 

68,657,360

 

69,244,419

 

 

 

 

 

 

 

 

 

 

 

Capital

21

 

63,571,416

 

63,571,416

 

63,571,416

 

63,571,416

 

 

 

 

 

 

 

 

 

 

 

Capital reserves

21

 

1,272,581

 

1,272,581

 

1,272,581

 

1,272,581

 

 

 

 

 

 

 

 

 

 

 

Revenue reserves

21

 

2,480,332

 

2,474,974

 

2,480,332

 

2,474,974

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

21

 

21,430

 

11,461

 

21,430

 

11,461

 

 

 

 

 

 

 

 

 

 

 

Retained earnings

21

 

1,311,601

 

-

 

1,311,601

 

-

 

 

 

 

 

 

 

 

 

 

 

Additional proposed dividends

21

 

-

 

1,913,987

 

-

 

1,913,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

104,168,320

 

101,957,505

 

104,356,478

 

102,066,259

 

TOTAL LIABILITIES AND EQUITY

 

 

104,168,320

 

101,957,505

 

104,356,478

 

102,066,259

 

 


 
 

(A free translation of the original in Portuguese)

 

TELEFÔNICA BRASIL S.A.

Income Statements

Three and six-month periods ended June 30, 2017 and 2016

(In thousands of reais, except earnings per share)

 

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

 

Three-month periods ended

 

Six-month periods ended

 

Three-month periods ended

 

Six-month periods ended

 

Note

 

06.30.17

 

06.30.16

 

06.30.17

 

06.30.16

 

06.30.17

 

06.30.16

 

06.30.17

 

06.30.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

22

 

10,054,580

 

9,912,641

 

20,134,226

 

18,270,754

 

10,697,193

 

10,510,049

 

21,287,343

 

20,941,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and services

23

 

(4,796,315)

 

(5,007,150)

 

(9,575,713)

 

(9,164,401)

 

(5,018,398)

 

(5,300,261)

 

(10,076,829)

 

(10,656,903)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

5,258,265

 

4,905,491

 

10,558,513

 

9,106,353

 

5,678,795

 

5,209,788

 

11,210,514

 

10,284,542

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (expenses)

 

 

(4,071,014)

 

(3,931,561)

 

(8,023,853)

 

(6,656,268)

 

(4,107,601)

 

(3,962,778)

 

(8,069,038)

 

(7,162,299)

Selling expenses

23

 

(3,288,205)

 

(3,092,816)

 

(6,444,193)

 

(5,675,176)

 

(3,305,711)

 

(3,105,136)

 

(6,487,849)

 

(6,090,665)

General and administrative expenses

23

 

(588,247)

 

(680,228)

 

(1,204,477)

 

(1,218,879)

 

(596,956)

 

(699,367)

 

(1,208,957)

 

(1,314,454)

Other operating income

24

 

65,366

 

89,265

 

179,557

 

721,937

 

66,497

 

90,473

 

182,122

 

754,770

Other operating expenses

24

 

(259,928)

 

(247,782)

 

(554,740)

 

(484,150)

 

(271,431)

 

(248,748)

 

(554,354)

 

(511,950)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

 

1,187,251

 

973,930

 

2,534,660

 

2,450,085

 

1,571,194

 

1,247,010

 

3,141,476

 

3,122,243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial income

25

 

451,443

 

699,109

 

977,067

 

1,446,710

 

480,998

 

722,433

 

1,034,912

 

1,520,633

Financial expenses

25

 

(732,166)

 

(1,027,368)

 

(1,571,420)

 

(2,071,416)

 

(745,284)

 

(1,028,492)

 

(1,589,570)

 

(2,143,485)

Equity in results of investees

10

 

262,926

 

194,369

 

424,784

 

450,380

 

544

 

476

 

1,349

 

724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

1,169,454

 

840,040

 

2,365,091

 

2,275,759

 

1,307,452

 

941,427

 

2,588,167

 

2,500,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax and social contribution

26

 

(296,532)

 

(140,544)

 

(495,972)

 

(358,033)

 

(434,530)

 

(241,931)

 

(719,048)

 

(582,389)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the period

 

 

872,922

 

699,496

 

1,869,119

 

1,917,726

 

872,922

 

699,496

 

1,869,119

 

1,917,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per common share (in R$)

21

 

0.48

 

0.39

 

1.04

 

1.07

 

 

 

 

 

 

 

 

Basic and diluted earnings per preferred share (in R$)

21

 

0.53

 

0.43

 

1.14

 

1.17

 

 

 

 

 

 

 

 

 

 

 


 
 

(A free translation of the original in Portuguese)

 

TELEFÔNICA BRASIL S.A.

Statements of Changes in Equity

Six-month periods ended June 30, 2017 and 2016

(In thousands of reais)

 

 

 

 

 

 

 

(A free translation of the original in Portuguese)

 

 

 

 

 

Capital reserves

 

Revenue reserves

 

 

 

 

 

 

 

 

 

Capital

 

Premium on acquisition of interest

 

Other capital reserves

 

Treasury shares

 

Legal reserve

 

Tax incentive reserve

 

Expansion and modernization reserve

 

Retained earnings

 

Proposed additional dividends

 

Other comprehensive income

 

Total equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2015

63,571,416

 

(75,388)

 

1,435,757

 

(87,805)

 

1,703,643

 

6,928

 

700,000

 

-

 

1,287,223

 

25,468

 

68,567,242

Payment of additional dividend for 2015

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,287,223)

 

-

 

(1,287,223)

Prescribed equity instruments

-

 

-

 

-

 

-

 

-

 

-

 

-

 

66,060

 

-

 

-

 

66,060

DIPJ adjustment - Tax incentives

-

 

-

 

-

 

-

 

-

 

4,882

 

-

 

(4,882)

 

-

 

-

 

-

Other comprehensive income

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(26,039)

 

(26,039)

Net income for the period

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1,917,726

 

-

 

-

 

1,917,726

Interim interest on equity

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(918,000)

 

-

 

-

 

(918,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at June 30, 2016

63,571,416

 

(75,388)

 

1,435,757

 

(87,805)

 

1,703,643

 

11,810

 

700,000

 

1,060,904

 

-

 

(571)

 

68,319,766

Prescribed equity instruments

-

 

-

 

-

 

-

 

-

 

-

 

-

 

155,499

 

-

 

-

 

155,499

Reclassification of premium on acquisition of equity interest by TData

-

 

75,388

 

(75,388)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

Preferred shares given referring to the judicial process of expansion plan

-

 

-

 

2

 

15

 

-

 

-

 

-

 

-

 

-

 

-

 

17

DIPJ adjustment - Tax incentives

-

 

-

 

-

 

-

 

-

 

5,259

 

-

 

(5,259)

 

-

 

-

 

-

Other comprehensive income

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(156,266)

 

-

 

12,032

 

(144,234)

Net income for the period

-

 

-

 

-

 

-

 

-

 

-

 

-

 

2,167,516

 

-

 

-

 

2,167,516

Allocation of income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal reserve

-

 

-

 

-

 

-

 

204,262

 

-

 

-

 

(204,262)

 

-

 

-

 

-

Interim interest on equity

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,254,145)

 

-

 

-

 

(1,254,145)

Reversal of Expansion and Modernization Reserve

-

 

-

 

-

 

-

 

-

 

-

 

(700,000)

 

700,000

 

-

 

-

 

-

Expansion and Modernization Reserve

-

 

-

 

-

 

-

 

-

 

-

 

550,000

 

(550,000)

 

-

 

-

 

-

Additional proposed dividends

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,913,987)

 

1,913,987

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2016

63,571,416

 

-

 

1,360,371

 

(87,790)

 

1,907,905

 

17,069

 

550,000

 

-

 

1,913,987

 

11,461

 

69,244,419

Payment of additional dividend for 2016

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,913,987)

 

-

 

(1,913,987)

Prescribed equity instruments

-

 

-

 

-

 

-

 

-

 

-

 

-

 

72,840

 

-

 

-

 

72,840

Repurchase of preferred shares

-

 

-

 

-

 

(2)

 

-

 

-

 

-

 

-

 

-

 

-

 

(2)

Preferred shares delivered referring to the judicial process of expansion plan

-

 

-

 

-

 

2

 

-

 

-

 

-

 

-

 

-

 

-

 

2

DIPJ adjustment - Tax incentives

-

 

-

 

-

 

-

 

-

 

5,358

 

-

 

(5,358)

 

-

 

-

 

-

Other comprehensive income

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

9,969

 

9,969

Net income for the period

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1,869,119

 

-

 

-

 

1,869,119

Interim interest on equity

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(625,000)

 

-

 

-

 

(625,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at June 30, 2017

63,571,416

 

-

 

1,360,371

 

(87,790)

 

1,907,905

 

22,427

 

550,000

 

1,311,601

 

-

 

21,430

 

68,657,360

 

 

 


 
 

(A free translation of the original in Portuguese)

 

 

TELEFÔNICA BRASIL S.A.

Statements of Comprehensive Income

Three and six-month periods ended June 30, 2017 and 2016

(In thousands of reais)

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

 

Three-month periods ended

 

Six-month periods ended

 

Three-month periods ended

 

Six-month periods ended

 

Note

 

06.30.17

 

06.30.16

 

06.30.17

 

06.30.16

 

06.30.17

 

06.30.16

 

06.30.17

 

06.30.16

Net income for the period

 

 

872,922

 

699,496

 

1,869,119

 

1,917,726

 

872,922

 

699,496

 

1,869,119

 

1,917,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on investments available for sale

10

 

(131)

 

66

 

334

 

(172)

 

(131)

 

66

 

334

 

(172)

Taxes

 

 

44

 

(23)

 

(114)

 

58

 

44

 

(23)

 

(114)

 

58

 

 

 

(87)

 

43

 

220

 

(114)

 

(87)

 

43

 

220

 

(114)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) on derivative financial instruments

30

 

(2,164)

 

6,141

 

3,968

 

(17,277)

 

(2,164)

 

6,141

 

3,968

 

(17,277)

Taxes

 

 

736

 

(2,088)

 

(1,349)

 

5,874

 

736

 

(2,088)

 

(1,349)

 

5,874

 

 

 

(1,428)

 

4,053

 

2,619

 

(11,403)

 

(1,428)

 

4,053

 

2,619

 

(11,403)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative Translation Adjustments (CTA) on transactions in foreign currency

10

 

8,181

 

(10,311)

 

7,130

 

(14,522)

 

8,181

 

(10,311)

 

7,130

 

(14,522)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (losses) to be reclassified into income (losses) in subsequent periods

 

 

6,666

 

(6,215)

 

9,969

 

(26,039)

 

6,666

 

(6,215)

 

9,969

 

(26,039)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income for the period, net of taxes

 

 

879,588

 

693,281

 

1,879,088

 

1,891,687

 

879,588

 

693,281

 

1,879,088

 

1,891,687

 

 

 

 

 

 

 

 

 

 


 
 

(A free translation of the original in Portuguese)

 

TELEFÔNICA BRASIL S.A.

Statements of Cash Flows

Six-month periods ended June 30, 2017 and 2016

(In thousands of Reais)

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

06.30.17

 

06.30.16

 

06.30.17

 

06.30.16

Operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (revenues) not representing changes in cash:

 

 

 

 

 

 

 

 

Income before taxes

 

2,365,091

 

2,275,759

 

2,588,167

 

2,500,115

Depreciation and amortization

 

3,887,106

 

3,389,592

 

3,900,834

 

3,866,606

Foreign exchange gains on loans and derivative financial instruments

 

54,286

 

13,739

 

54,286

 

13,739

Monetary losses

 

327,745

 

304,788

 

337,006

 

297,011

Equity in results of investees

 

(424,784)

 

(450,380)

 

(1,349)

 

(724)

Losses (gains) on write-off/sale of goods

 

10,791

 

(452,157)

 

10,264

 

(457,619)

Provision for impairment - accounts receivable

 

682,800

 

577,628

 

728,525

 

661,433

Provision of trade accounts payable

 

121,672

 

318,334

 

91,698

 

332,457

Write-off and reversals for impairment - inventories

 

(36,005)

 

(19,774)

 

(31,727)

 

(20,020)

Pension plans and other post-retirement benefits

 

15,410

 

(4,788)

 

15,400

 

(5,544)

Provisions for tax, civil, labor and regulatory contingencies

 

448,505

 

485,493

 

460,494

 

513,292

Interest expense

 

529,876

 

507,652

 

529,876

 

548,145

Other

 

6,205

 

(43,124)

 

6,205

 

(61,146)

 

 

 

 

 

 

 

 

 

Changes in assets and liabilities

 

 

 

 

 

 

 

 

Trade accounts receivable

 

(758,408)

 

(608,191)

 

(773,594)

 

(899,519)

Inventories

 

44,200

 

139,910

 

52,273

 

145,139

Taxes recoverable

 

(193,192)

 

2,918

 

(166,008)

 

(53,673)

Prepaid expenses

 

(425,483)

 

(381,424)

 

(436,748)

 

(397,099)

Other current assets

 

3,148

 

36,025

 

(4,301)

 

18,875

Other noncurrent assets

 

(23,101)

 

32,758

 

(22,432)

 

7,530

Personnel, social charges and benefits

 

(17,386)

 

67,253

 

(17,726)

 

90,892

Trade accounts payable

 

(4,952)

 

(627,547)

 

(36,592)

 

(448,855)

Taxes, charges and contributions

 

286,211

 

(118,816)

 

290,342

 

30,031

Other current liabilities

 

(1,344,868)

 

(283,530)

 

(1,344,178)

 

(286,915)

Other non-current liabilities

 

(537,444)

 

(487,759)

 

(518,449)

 

(497,087)

 

 

5,017,423

 

4,674,359

 

5,712,266

 

5,897,064

 

 

 

 

 

 

 

 

 

Interest paid

 

(398,438)

 

(446,340)

 

(398,438)

 

(486,407)

Income tax and social contribution paid

 

-

 

(157,831)

 

(175,170)

 

(370,109)

 

 

 

 

 

 

 

 

 

Total cash generated by operating activities

 

4,618,985

 

4,070,188

 

5,138,658

 

5,040,548

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

Additions to PP&E, intangible assets

 

(3,435,935)

 

(3,097,358)

 

(3,503,628)

 

(3,649,959)

Cash received from sale of PP&E items

 

16,721

 

765,208

 

17,948

 

765,480

Redemption of (increase in) judicial deposits

 

(46,215)

 

(100,252)

 

(46,665)

 

(118,733)

Dividends and interest on equity received

 

-

 

389,395

 

-

 

-

Cash and cash equivalents merged

 

-

 

358,579

 

-

 

-

 

 

 

 

 

 

 

 

 

Total cash used in investing activities

 

(3,465,429)

 

(1,684,428)

 

(3,532,345)

 

(3,003,212)

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

Payment of loans, financing and debentures

 

(1,223,083)

 

(1,461,168)

 

(1,223,083)

 

(1,630,405)

Funding from the issuance of loans, financing and debentures

 

2,039,878

 

-

 

2,039,878

 

-

Received from derivative financial instruments

 

50,927

 

72,444

 

50,927

 

72,444

Payment of derivative financial instruments

 

(131,411)

 

(139,427)

 

(131,411)

 

(139,427)

Payment for reverse split of shares

 

-

 

(164)

 

-

 

(164)

Dividends and interest on equity paid

 

(671)

 

(917)

 

(671)

 

(917)

Repurchase of preferred shares

 

(2)

 

-

 

(2)

 

-

 

 

 

 

 

 

 

 

 

Total cash generated by (used in) financing activities

 

735,638

 

(1,529,232)

 

735,638

 

(1,698,469)

 

 

 

 

 

 

 

 

 

Increase in cash and cash equivalents

 

1,889,194

 

856,528

 

2,341,951

 

338,867

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of the period

 

4,675,627

 

4,206,595

 

5,105,110

 

5,336,845

Cash and cash equivalents at end of the period

 

6,564,821

 

5,063,123

 

7,447,061

 

5,675,712

 

 

 

 

 

 

 

 

 

Changes in cash and cash equivalents for the period

 

1,889,194

 

856,528

 

2,341,951

 

338,867

 

 

 

 


 
 

(A free translation of the original in Portuguese)

 

TELEFÔNICA BRASIL S.A.

Statements of Value Added

Six-month periods ended June 30, 2017 and 2016

(In thousands in reais)

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

06.30.17

 

06.30.16

 

06.30.17

 

06.30.16

 

 

 

 

 

 

 

 

 

Revenues

 

28,190,119

 

25,196,800

 

29,486,687

 

28,548,619

Sale of goods and services

 

28,335,138

 

25,291,571

 

29,649,858

 

28,601,572

Other revenues

 

537,781

 

482,857

 

565,354

 

608,480

Provision for impairment of trade accounts receivable

 

(682,800)

 

(577,628)

 

(728,525)

 

(661,433)

 

 

 

 

 

 

 

 

 

Inputs acquired from third parties

 

(9,398,203)

 

(8,785,611)

 

(9,913,958)

 

(10,006,992)

Cost of goods and products sold and services rendered

 

(4,681,846)

 

(4,926,792)

 

(5,198,167)

 

(5,925,740)

Materials, electric energy, third-party services and other expenses

 

(4,711,195)

 

(4,331,613)

 

(4,706,749)

 

(4,559,399)

Assets (loss) recovery

 

(5,162)

 

472,794

 

(9,042)

 

478,147

 

 

 

 

 

 

 

 

 

Gross value added

 

18,791,916

 

16,411,189

 

19,572,729

 

18,541,627

 

 

 

 

 

 

 

 

 

Retentions

 

(3,887,106)

 

(3,389,592)

 

(3,900,834)

 

(3,866,606)

Depreciation and amortization

 

(3,887,106)

 

(3,389,592)

 

(3,900,834)

 

(3,866,606)

 

 

 

 

 

 

 

 

 

Net value added produced

 

14,904,810

 

13,021,597

 

15,671,895

 

14,675,021

 

 

 

 

 

 

 

 

 

Value added received in transfer

 

1,401,851

 

1,897,090

 

1,036,261

 

1,521,357

Equity in results of investees