vivoitr2q16_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 August, 2016

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

 

 

 

 

 
 

 

 

 

 

 

 

 

 

 

 

 

TELEFÔNICA BRASIL S.A.

 

 

QUARTERLY INFORMATION

 

JUNE 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 
 
 

 

     
Adobe Systems    
 
 

São Paulo Corporate Towers

Av. Presidente Juscelino Kubitschek, 1.909

Vila Nova Conceição

04543-011 - São Paulo - SP - Brasil

 

Tel: +55 11 2573-3000

ey.com.br

 

 
     

 

A free translation from Portuguese into English of Independent Auditor’s Report on interim financial information prepared in Brazilian currency in accordance with accounting practices adopted in Brazil and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB)

 


 

 


Independent auditor’s report on interim financial information

 

To Shareholders, Board of Directors and Officers

Telefônica Brasil S.A.

São Paulo - SP

 

We have reviewed the individual and consolidated interim financial information of Telefônica Brasil S.A., (“Company”), contained in the Quarterly Information Form (Informações Trimestrais - ITR) for the quarter ended on June 30, 2016, which comprise the balance sheet as of June 30, 2016 and the related statements of income and of comprehensive income for the three-month and six-month period ended on June 30, 2016, and changes in equity and of cash flows for the six-month period then ended, including other explanatory information.

 

Management is responsible for the preparation of the individual and consolidated interim financial information in accordance with Accounting Standard CPC 21 (R1) Interim Financial Reporting (Demonstração Intermediária) issued by Comitê de Pronunciamentos Contábeis - CPC and with IAS 34 – Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the presentation of this information in conformity with the standards issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of Quarterly Information Form (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 Review Engagements (NBC TR 2410 - Revisão de Informações Intermediárias Executada pelo Auditor da Entidade and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial 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 auditing standards and consequently does 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 individual and consolidated interim financial information

 

Based on our review, nothing has come to our attention that causes us to believe that the individual and consolidated interim financial information included in the Quarterly Information Form (ITR) referred to above were not prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34 applicable to the preparation of the Quarterly Information Form (ITR), and presented consistently with the rules issued by the Brazilian Securities and Exchange Commission (CVM).

 

 


 
 
 
     
Adobe Systems    
 
 

São Paulo Corporate Towers

Av. Presidente Juscelino Kubitschek, 1.909

Vila Nova Conceição

04543-011 - São Paulo - SP - Brasil

 

Tel: +55 11 2573-3000

ey.com.br

 

 
     

 

 

Other matters

 

Statements of value added

 

We have also reviewed the individual and consolidated interim Value Added Statement for the six-month period ended on June 30, 2016, prepared under management’s responsibility, whose presentation in the interim financial information is required by the rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to preparation of the Quarterly Information Form (ITR), and as supplementary information under IFRS, which do not require Value Added Statement presentation. This statement has been subject to the same review procedures previously described and, based on our review, nothing has come to our attention that causes us to believe that it is not fairly presented, in all material respects, in relation to the overall accompanying interim financial information.

 

 

São Paulo, July 25, 2016.

 

ERNST & YOUNG

Auditores Independentes S.S.

CRC-2SP015199/O-6

 

 

 

Luiz Carlos Passetti

Contador CRC-1SP144343/O-3

 

 

 


 
 

 

TELEFÔNICA BRASIL S.A.

Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At June 30, 2016 and December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands of reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

Consolidated

 

 

 

 

Company

 

 

 

Consolidated

ASSETS

Note

06.30.16

 

12.31.15

 

06.30.16

 

12.31.15

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Note

06.30.16

 

12.31.15

 

06.30.16

 

12.31.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

17,576,182

 

15,185,519

 

18,541,442

 

17,909,303

 

Current liabilities

 

 

18,706,671

 

15,948,843

 

18,952,498

 

17,981,713

Cash and cash equivalents

4

 

5,063,123

 

4,206,595

 

5,675,712

 

5,336,845

 

Personnel, social charges and benefits

14

 

765,811

 

520,023

 

781,899

 

698,846

Trade accounts receivable, net

5

 

8,201,726

 

7,000,379

 

8,586,366

 

8,285,319

 

Trade accounts payable

15

 

7,405,874

 

7,496,947

 

7,564,743

 

8,373,235

Inventories, net

6

 

438,128

 

558,264

 

478,512

 

603,631

 

Taxes, charges and contributions

16

 

1,505,615

 

1,175,293

 

1,581,106

 

1,716,002

Taxes recoverable

7.1

 

2,128,408

 

2,164,544

 

2,172,151

 

2,521,292

 

Dividends and interest on equity

17

 

4,214,731

 

2,209,362

 

4,214,731

 

2,209,362

Judicial deposits and garnishments

8

 

263,895

 

235,343

 

263,928

 

235,343

 

Provisions and contingencies

18

 

1,008,714

 

894,069

 

1,008,714

 

914,377

Prepaid expenses

9

 

838,045

 

317,325

 

853,030

 

356,446

 

Deferred revenues

19

 

454,075

 

562,601

 

457,127

 

564,557

Dividends and interest on equity

17

 

18,156

 

18,645

 

-

 

489

 

Loans, financing, financial lease and contingent consideration

20

 

1,521,326

 

1,811,037

 

1,521,326

 

2,222,067

Derivative transactions

33

 

78,750

 

81,306

 

78,750

 

81,306

 

Debentures

20

 

122,343

 

120,924

 

122,343

 

120,924

Other assets

10

 

545,951

 

603,118

 

432,993

 

488,632

 

Derivative transactions

33

 

184,992

 

151,686

 

184,992

 

151,686

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

21

 

1,523,190

 

1,006,901

 

1,515,517

 

1,010,657

Non-current assets

 

 

83,683,674

 

82,387,176

 

83,006,119

 

83,775,761

 

 

 

 

 

 

 

 

 

 

 

Short-term investments pledged as collateral

 

97,626

 

90,863

 

97,636

 

109,864

 

Non-current liabilities

 

 

14,233,419

 

13,056,610

 

14,275,297

 

15,136,109

Trade accounts receivable, net

5

 

164,173

 

217,621

 

267,490

 

330,451

 

Personnel, social charges and benefits

14

 

27,562

 

19,808

 

27,647

 

19,808

Taxes recoverable

7.1

 

551,605

 

337,477

 

552,807

 

409,653

 

Trade accounts payable

15

 

67,742

 

-

 

67,742

 

67,742

Deferred taxes

7.2

 

457,372

 

-

 

609,588

 

711,590

 

Taxes, charges and contributions

16

 

58,695

 

57,416

 

86,033

 

87,018

Judicial deposits and garnishments

8

 

5,714,185

 

4,880,489

 

5,785,751

 

5,518,120

 

Deferred taxes

7.2

 

-

 

155,951

 

-

 

-

Prepaid expenses

9

 

27,909

 

28,632

 

29,697

 

30,609

 

Provisions and contingencies

18

 

6,242,582

 

5,077,839

 

6,270,378

 

5,890,319

Derivative transactions

33

 

179,374

 

417,558

 

179,374

 

417,558

 

Deferred revenues

19

 

438,553

 

358,963

 

438,589

 

359,237

Other assets

10

 

55,137

 

55,228

 

55,935

 

62,799

 

Loans, financing, financial lease and contingent consideration

20

 

3,553,454

 

3,141,987

 

3,553,454

 

4,454,509

Investments

11

 

1,374,295

 

24,342,692

 

87,680

 

101,161

 

Debentures

20

 

3,430,209

 

3,423,790

 

3,430,209

 

3,423,790

Property, plant and equipment, net

12

 

30,248,885

 

22,019,076

 

30,313,493

 

30,476,765

 

Derivative transactions

33

 

61,417

 

82,421

 

61,417

 

82,421

Intangible assets, net

13

 

44,813,113

 

29,997,540

 

45,026,668

 

45,607,191

 

Liabilities for post-retirement benefits plans

32

 

80,465

 

76,616

 

80,465

 

85,343

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

21

 

272,740

 

661,819

 

259,363

 

665,922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

68,319,766

 

68,567,242

 

68,319,766

 

68,567,242

 

 

 

 

 

 

 

 

 

 

 

Capital

22

 

63,571,416

 

63,571,416

 

63,571,416

 

63,571,416

 

 

 

 

 

 

 

 

 

 

 

Capital reserves

22

 

1,347,952

 

1,347,952

 

1,347,952

 

1,347,952

 

 

 

 

 

 

 

 

 

 

 

Income Reserves

22

 

2,415,453

 

2,410,571

 

2,415,453

 

2,410,571

 

 

 

 

 

 

 

 

 

 

Premium on acquisition of equity interest

22

 

(75,388)

 

(75,388)

 

(75,388)

 

(75,388)

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

22

 

(571)

 

25,468

 

(571)

 

25,468

 

 

 

 

 

 

 

 

 

 

 

Additional dividend proposed

22

 

-

 

1,287,223

 

-

 

1,287,223

 

 

 

 

 

 

 

 

 

 

 

Retained earnings

22

 

1,060,904

 

-

 

1,060,904

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

101,259,856

 

97,572,695

 

101,547,561

 

101,685,064

 

TOTAL LIABILITIES AND EQUITY

 

 

101,259,856

 

97,572,695

 

101,547,561

 

101,685,064

 

 


 
 

 

 

TELEFÔNICA BRASIL S. A.

Income Statements

For the three- and six-month periods ended June 30, 2016 and 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands of reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

 

Three-month periods ended

 

Six-month periods ended

 

Three-month periods ended

 

Six-month periods ended

 

Note

 

06.30.16

 

06.30.15

 

06.30.16

 

06.30.15

 

06.30.16

 

06.30.15

 

06.30.16

 

06.30.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenue, net

23

 

9,912,641

 

8,414,876

 

18,270,754

 

16,836,157

 

10,510,049

 

9,962,125

 

20,941,445

 

18,945,203

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and services

24

 

(5,007,150)

 

(4,303,895)

 

(9,164,401)

 

(8,592,857)

 

(5,300,261)

 

(5,068,448)

 

(10,656,903)

 

(9,605,288)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

4,905,491

 

4,110,981

 

9,106,353

 

8,243,300

 

5,209,788

 

4,893,677

 

10,284,542

 

9,339,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (expenses)

 

 

(3,931,561)

 

(3,269,175)

 

(6,656,268)

 

(6,517,559)

 

(3,962,778)

 

(3,639,509)

 

(7,162,299)

 

(6,922,113)

Selling expenses

24

 

(3,092,816)

 

(2,686,978)

 

(5,675,176)

 

(5,369,141)

 

(3,105,136)

 

(2,973,591)

 

(6,090,665)

 

(5,682,237)

General and administrative expenses

24

 

(680,228)

 

(456,692)

 

(1,218,879)

 

(877,733)

 

(699,367)

 

(531,434)

 

(1,314,454)

 

(961,254)

Other operating income

25

 

89,265

 

130,938

 

721,937

 

243,712

 

90,473

 

146,631

 

754,770

 

260,457

Other operating expenses

25

 

(247,782)

 

(256,443)

 

(484,150)

 

(514,397)

 

(248,748)

 

(281,115)

 

(511,950)

 

(539,079)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

973,930

 

841,806

 

2,450,085

 

1,725,741

 

1,247,010

 

1,254,168

 

3,122,243

 

2,417,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial income

26

 

699,109

 

1,568,219

 

1,446,710

 

2,181,793

 

722,433

 

1,633,509

 

1,520,633

 

2,280,064

Financial expenses

26

 

(1,027,368)

 

(1,512,814)

 

(2,071,416)

 

(2,374,344)

 

(1,028,492)

 

(1,805,036)

 

(2,143,485)

 

(2,669,443)

Equity pickup

11

 

194,369

 

123,002

 

450,380

 

327,452

 

476

 

440

 

724

 

672

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

840,040

 

1,020,213

 

2,275,759

 

1,860,642

 

941,427

 

1,083,081

 

2,500,115

 

2,029,095

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income and social contribution taxes

27

 

(140,544)

 

(150,397)

 

(358,033)

 

(411,107)

 

(241,931)

 

(213,265)

 

(582,389)

 

(579,560)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the period

 

 

699,496

 

869,816

 

1,917,726

 

1,449,535

 

699,496

 

869,816

 

1,917,726

 

1,449,535

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share (in R$)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares

28

 

0.39

 

0.56

 

1.07

 

1.05

 

 

 

 

 

 

 

 

Preferred shares

28

 

0.43

 

0.62

 

1.17

 

1.16

 

 

 

 

 

 

 

 

 

 

 

 

 


 
 

 

 

TELEFÔNICA BRASIL S.A.

Statements of Changes in Shareholders’ Equity

Six-month periods ended June 30, 2016 and 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands of reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital reserves

 

Income Reserves

 

 

 

 

 

 

 

 

 

Capital

 

Premium on acquisition of interest

 

Other capital reserves

 

Treasury Shares

 

Legal reserve

 

Tax incentives

 

Reserve for expansion and modernization

 

Retained earnings

 

Additional dividend proposed

 

Other comprehensive income

 

Total Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of December 31, 2014

37,798,110

 

(70,448)

 

2,799,004

 

(112,107)

 

1,532,630

 

1,849

 

-

 

-

 

2,768,592

 

232,465

 

44,950,095

Additional dividends proposed for year 2014

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(2,768,592)

 

-

 

(2,768,592)

Expired equity instruments

-

 

-

 

-

 

-

 

-

 

-

 

-

 

58,623

 

-

 

-

 

58,623

DIPJ (Corporate Income Tax Return) Adjustment - Tax incentives

-

 

-

 

-

 

-

 

-

 

1,220

 

-

 

(1,220)

 

-

 

-

 

-

Cancellation of treasury shares, according to EGM of March 12, 2015

-

 

-

 

(112,107)

 

112,107

 

-

 

-

 

-

 

-

 

-

 

-

 

-

Capital increase - EGM of April 28, 2015

15,812,000

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

15,812,000

Direct costs on capital increases (net of taxes), according to EGM of April 28, 2015

-

 

-

 

(62,812)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(62,812)

Capital increase - EGM of April 30, 2015

295,285

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

295,285

Direct costs on capital increases (net of taxes), according to EGM of April 30, 2015

-

 

-

 

(3,776)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(3,776)

Capital increase - merger of shares in GVTPart – EGM of May 28, 2015

9,666,021

 

-

 

(1,188,707)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

8,477,314

Dissenters' right - Acquisition of GVTPart.

-

 

-

 

-

 

(86,023)

 

-

 

-

 

-

 

-

 

-

 

-

 

(86,023)

Other comprehensive income

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(218,422)

 

(218,422)

Net income for the period

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1,449,535

 

-

 

-

 

1,449,535

Interim interest on equity

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(515,000)

 

-

 

-

 

(515,000)

Interim dividends

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(270,000)

 

-

 

-

 

(270,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances as of June 30, 2015

63,571,416

 

(70,448)

 

1,431,602

 

(86,023)

 

1,532,630

 

3,069

 

-

 

721,938

 

-

 

14,043

 

67,118,227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expired equity instruments

-

 

-

 

-

 

-

 

-

 

-

 

-

 

435,378

 

-

 

-

 

435,378

DIPJ (Corporate Income Tax Return) Adjustment - Tax incentives

-

 

-

 

-

 

-

 

-

 

3,859

 

-

 

(3,859)

 

-

 

-

 

-

Direct costs on capital increases (net of taxes), according to EGM of April 28, 2015

-

 

-

 

4,155

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

4,155

Dissenters' right - Acquisition of GVTPart.

-

 

-

 

-

 

(1,782)

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,782)

Premium on acquisition of equity interest by TData

-

 

(4,940)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(4,940)

Other comprehensive income

-

 

-

 

-

 

-

 

-

 

-

 

-

 

264,990

 

-

 

11,425

 

276,415

Net income for the period

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1,970,714

 

-

 

-

 

1,970,714

Income allocation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal reserve

-

 

-

 

-

 

-

 

171,013

 

-

 

-

 

(171,013)

 

-

 

-

 

-

Interim interest on equity

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,230,925)

 

-

 

-

 

(1,230,925)

Expansion and modernization reserve

-

 

-

 

-

 

-

 

-

 

-

 

700,000

 

(700,000)

 

-

 

-

 

-

Additional dividend proposed

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,287,223)

 

1,287,223

 

-

 

-

Balances as of 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional dividends proposed for year 2015

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,287,223)

 

-

 

(1,287,223)

Expired equity instruments

-

 

-

 

-

 

-

 

-

 

-

 

-

 

66,060

 

-

 

-

 

66,060

DIPJ (Corporate Income Tax Return) 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 as of 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

 

 


 
 

 

TELEFÔNICA BRASIL S. A.

Statements of Comprehensive Income

For the three- and six-month periods ended June 30, 2016 and 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands of reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

Three-month periods ended

 

Six-month periods ended

 

Three-month periods ended

 

Six-month periods ended

 

06.30.16

 

06.30.15

 

06.30.16

 

06.30.15

 

06.30.16

 

06.30.15

 

06.30.16

 

06.30.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the year

699,496

 

869,816

 

1,917,726

 

1,449,535

 

699,496

 

869,816

 

1,917,726

 

1,449,535

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on investments available for sale

66

 

206

 

(172)

 

(783)

 

66

 

206

 

(172)

 

(783)

Taxes on unrealized gains (losses) on investments available for sale

(23)

 

(70)

 

58

 

266

 

(23)

 

(70)

 

58

 

266

 

43

 

136

 

(114)

 

(517)

 

43

 

136

 

(114)

 

(517)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) on derivative transactions

6,141

 

3,206

 

(17,277)

 

(1,050)

 

6,141

 

3,321

 

(17,277)

 

(935)

Taxes on gains (losses) on derivative transactions

(2,088)

 

(1,090)

 

5,874

 

357

 

(2,088)

 

(1,090)

 

5,874

 

357

 

4,053

 

2,116

 

(11,403)

 

(693)

 

4,053

 

2,231

 

(11,403)

 

(578)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative translation adjustments (CTA) on foreign currency transactions

(10,311)

 

423

 

(14,522)

 

5,210

 

(10,311)

 

423

 

(14,522)

 

5,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other net comprehensive income to be reclassified into income in subsequent periods

(6,215)

 

2,675

 

(26,039)

 

4,000

 

(6,215)

 

2,790

 

(26,039)

 

4,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains (losses) on derivative transactions

-

 

(945,914)

 

-

 

(336,125)

 

-

 

(945,914)

 

-

 

(336,125)

Taxes on gains (losses) on derivative transactions

-

 

321,611

 

-

 

114,283

 

-

 

321,611

 

-

 

114,283

 

-

 

(624,303)

 

-

 

(221,842)

 

-

 

(624,303)

 

-

 

(221,842)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Losses on other comprehensive income (loss)

-

 

-

 

 

 

-

 

-

 

(695)

 

-

 

(695)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest in comprehensive income of subsidiaries

-

 

(580)

 

-

 

(580)

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other net comprehensive income to be not reclassified into income in subsequent periods

-

 

(624,883)

 

-

 

(222,422)

 

-

 

(624,998)

 

-

 

(222,537)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income for the period, net of taxes

693,281

 

247,608

 

1,891,687

 

1,231,113

 

693,281

 

247,608

 

1,891,687

 

1,231,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share (in R$)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares

0.39

 

0.39

 

1.05

 

0.39

 

 

 

 

 

 

 

 

Preferred shares

0.42

 

0.39

 

1.16

 

0.39

 

 

 

 

 

 

 

 

 

 


 
 

 

 

 

 

TELEFÔNICA BRASIL S.A.

Statements of Cash Flows

Six-month periods ended June 30, 2016 and 2015

 

 

 

 

 

 

 

 

(In thousands of Reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

06.30.16

 

06.30.15

 

06.30.16

 

06.30.15

Total cash generated from operating activities

 

4,070,188

 

2,721,001

 

5,040,548

 

3,323,699

 

 

 

 

 

 

 

 

 

Expenses (incomes) not representing changes in cash

 

6,859,295

 

6,117,360

 

8,151,367

 

7,297,753

Income before taxes

 

2,275,759

 

1,860,642

 

2,500,115

 

2,029,095

Depreciation and amortization

 

3,389,592

 

2,810,898

 

3,866,606

 

3,099,990

Foreign exchange gain (losses) on loans

 

13,739

 

(141,854)

 

13,739

 

81,307

Currency variations gain (losses)

 

239,156

 

163,103

 

229,000

 

171,137

Equity pick-up

 

(450,380)

 

(327,452)

 

(724)

 

(672)

Losses (gains) on write-off/disposal of property

 

(452,157)

 

21,415

 

(457,619)

 

27,987

Estimated impairment losses on accounts receivable

 

577,628

 

543,545

 

661,433

 

609,212

Provision for (reversal from) suppliers

 

318,334

 

321,637

 

332,457

 

370,073

Write-off and reversal of estimated losses from impairment and obsolescence of inventories

 

(19,774)

 

(15,061)

 

(20,020)

 

(16,034)

Pension plans and other post-retirement benefits

 

(4,788)

 

21,594

 

(5,544)

 

21,586

Provisions for tax, labor, civil and regulatory contingencies

 

496,186

 

413,793

 

528,127

 

427,796

Interest expenses

 

507,652

 

415,468

 

548,145

 

446,644

Other

 

(31,652)

 

29,632

 

(44,348)

 

29,632

 

 

 

 

 

 

 

 

 

Increase or decrease in operating assets and liabilities

 

(2,789,107)

 

(3,396,359)

 

(3,110,819)

 

(3,974,054)

Trade Accounts receivable

 

(608,191)

 

(664,268)

 

(899,519)

 

(757,292)

Inventories

 

139,910

 

(156,409)

 

145,139

 

(179,920)

Taxes recoverable

 

2,918

 

(100,492)

 

(53,673)

 

(104,794)

Prepaid expenses

 

(381,424)

 

(446,092)

 

(397,099)

 

(441,228)

Other current assets

 

31,723

 

6,998

 

18,875

 

(47,732)

Other non-current assets

 

30,565

 

(131,989)

 

7,530

 

(131,961)

Personnel, social charges and benefits

 

67,253

 

(141,562)

 

90,892

 

(133,789)

Trade accounts payable

 

(655,123)

 

(277,052)

 

(486,108)

 

(398,411)

Taxes, charges and contributions

 

(118,816)

 

(186,651)

 

30,031

 

(187,484)

Interest paid

 

(446,340)

 

(402,210)

 

(486,407)

 

(441,248)

Income and social contribution taxes paid

 

(157,831)

 

-

 

(370,109)