vivitr3q18_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 November, 2018

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

 

SEPTEMBER 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 
 

(A free translation of the original in Portuguese)

 

Independent auditor's report

 

 

Report on review of quarterly information

 

To the Board of Directors and Shareholders of

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 September 30, 2018, comprising the balance sheet at that date and the statements of income and comprehensive income for the quarter and nine-month periods then ended, and the statements of changes in equity and cash flows for the nine-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 and consolidated interim accounting information in accordance with the accounting standard CPC 21, Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC) 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 accounting 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 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 interim information

 

Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company and 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.

 

 

 


 
 

 

Other matters

 

Statements of value added

 

We have also reviewed the parent company and consolidated statements of value added for the nine-month period ended September 30, 2018. 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.

 

São Paulo, October 26, 2018

 

 

 

PricewaterhouseCoopers

Auditores Independentes

CRC 2SP000160/O-5

 

 

 

Estela Maris Vieira de Souza

Contadora CRC 1RS046957/O-3

 


 
 

 

TELEFÔNICA BRASIL S.A.

Balance Sheets

At September 30, 2018 and December 31, 2017

(In thousands of reais)

 

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

 

 

Company

 

Consolidated

ASSETS

Note

 

09.30.18

 

12.31.17

 

09.30.18

 

12.31.17

 

LIABILITIES AND EQUITY

Note

 

09.30.18

 

12.31.17

 

09.30.18

 

12.31.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

17,410,063

 

16,668,039

 

17,850,019

 

16,731,666

 

Current liabilities

 

 

20,346,340

 

18,819,861

 

19,713,183

 

17,862,531

Cash and cash equivalents

3

 

   3,349,692

 

   3,681,173

 

   3,713,754

 

   4,050,338

 

Personnel, social charges and benefits

14

 

   687,651

 

   648,957

 

   769,869

 

   723,380

Trade accounts receivable

4

 

   8,566,785

 

   8,413,403

 

   8,670,107

 

   8,588,466

 

Trade accounts payable

15

 

   9,054,673

 

   8,560,844

 

   8,109,680

 

   7,447,100

Inventories

5

 

   421,936

 

   324,711

 

   459,313

 

   348,755

 

Income and social contribution taxes payable

6

 

-

 

-

 

82,462

 

   4,479

Income and social contribution taxes recoverable

6

 

   272,849

 

   401,259

 

   273,564

 

   505,535

 

Taxes, charges and contributions payable

16

 

   1,649,084

 

   1,669,741

 

   1,779,952

 

   1,726,836

Taxes, charges and contributions recoverable

7

 

   3,244,830

 

  1,984,999

 

   3,257,501

 

   2,058,455

 

Dividends and interest on equity

17

 

   5,230,594

 

   2,396,116

 

   5,230,594

 

   2,396,116

Judicial deposits and garnishments

8

 

   317,266

 

   324,465

 

   317,612

 

   324,638

 

Provisions

18

 

   1,270,846

 

   1,434,911

 

   1,270,863

 

   1,434,911

Prepaid expenses

9

 

   698,575

 

   425,298

 

   714,710

 

   446,439

 

Deferred revenue

19

 

   514,919

 

   370,493

 

   516,081

 

   372,561

Dividends and interest on equity

17

 

-

 

   323,206

 

-

 

-

 

Loans and financing

20

 

   1,441,799

 

   1,620,955

 

   1,441,799

 

   1,620,955

Derivative financial instruments

30

 

   105,168

 

87,643

 

   105,785

 

87,643

 

Debentures

20

 

68,348

 

   1,412,486

 

68,348

 

   1,412,486

Other assets

10

 

   432,962

 

   701,882

 

   337,673

 

   321,397

 

Derivative financial instruments

30

 

   3,005

 

   5,107

 

   3,005

 

   5,239

 

 

 

 

 

 

 

 

 

 

 

Other liabilities

21

 

   425,421

 

  700,251

 

   440,530

 

   718,468

Non-current assets

 

 

87,373,288

 

85,495,114

 

86,484,303

 

84,651,169

 

 

 

 

 

 

 

 

 

 

 

   Long-term assets

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

12,975,515

 

13,881,934

 

13,159,643

 

14,058,946

   Short-term investments pledged as collateral

 

 

79,686

 

81,472

 

79,953

 

81,486

 

Personnel, social charges and benefits

14

 

14,758

 

21,648

 

16,656

 

23,284

   Trade accounts receivable

4

 

   173,796

 

   167,682

 

   331,481

 

   273,888

 

Taxes, charges and contributions payable

16

 

16,712

 

18,463

 

36,307

 

49,448

   Deferred taxes

6

 

-

 

-

 

   387,640

 

   371,408

 

Deferred taxes

6

 

   2,149,386

 

   709,325

 

   2,149,386

 

   709,325

   Taxes, charges and contributions recoverable

7

 

   5,139,881

 

   740,104

 

   5,139,881

 

   743,285

 

Provisions

18

 

   4,826,948

 

   6,566,056

 

   4,979,534

 

   6,709,839

   Judicial deposits and garnishments

8

 

   3,506,048

 

   6,155,821

 

   3,691,435

 

   6,339,167

 

Deferred revenue

19

 

   344,716

 

   350,637

 

   344,716

 

   350,637

   Prepaid expenses

9

 

   118,787

 

21,684

 

   122,802

 

23,116

 

Loans and financing

20

 

   1,705,192

 

   2,320,147

 

   1,705,192

 

   2,320,147

   Derivative financial instruments

30

 

27,045

 

    76,762

 

27,045

 

76,762

 

Debentures

20

 

   3,090,298

 

   3,108,253

 

   3,090,298

 

   3,108,253

   Other assets

10

 

46,338

 

86,345

 

    47,166

 

88,935

 

Derivative financial instruments

30

 

18,622

 

15,412

 

18,622

 

15,412

Investments

11

 

   2,060,945

 

   1,949,276

 

   107,015

 

98,902

 

Other liabilities

21

 

   808,883

 

   771,993

 

   818,932

 

   772,601

Property, plant and equipment

12

 

34,037,280

 

33,112,532

 

34,135,398

 

33,222,316

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

13

 

42,183,482

 

43,103,436

 

42,414,487

 

43,331,904

 

TOTAL LIABILITIES

 

 

33,321,855

 

32,701,795

 

32,872,826

 

31,921,477

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

71,461,496

 

69,461,358

 

71,461,496

 

69,461,358

 

 

 

 

 

 

 

 

 

 

 

Capital

22

 

63,571,416

 

63,571,416

 

63,571,416

 

63,571,416

 

 

 

 

 

 

 

 

 

 

 

Capital reserves

22

 

   1,213,522

 

   1,213,522

 

   1,213,522

 

   1,213,522

 

 

 

 

 

 

 

 

 

 

 

Income reserves

22

 

   2,471,637

 

   2,463,228

 

   2,471,637

 

   2,463,228

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

22

 

33,893

 

21,328

 

33,893

 

21,328

 

 

 

 

 

 

 

 

 

 

 

Retained earnings

22

 

   4,171,028

 

-

 

   4,171,028

 

-

 

 

 

 

 

 

 

 

 

 

 

Additional proposed dividends

22

 

-

 

   2,191,864

 

-

 

   2,191,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

  104,783,351

 

  102,163,153

 

  104,334,322

 

  101,382,835

 

TOTAL LIABILITIES AND EQUITY

 

 

  104,783,351

 

  102,163,153

 

  104,334,322

 

  101,382,835

 

 


 
 

 

TELEFÔNICA BRASIL S.A.

Income Statements

Three and nine-month periods ended September 30, 2018 and 2017

(In thousands of reais, except earnings per share)

 

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

 

Three-month periods ended

 

Nine-month periods ended

 

Three-month periods ended

 

Nine-month periods ended

 

Note

 

09.30.18

 

09.30.17

 

09.30.18

 

09.30.17

 

09.30.18

 

09.30.17

 

09.30.18

 

09.30.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating revenue

23

 

   9,582,079

 

   9,631,494

 

27,744,368

 

29,765,720

 

10,764,902

 

10,885,949

 

32,377,261

 

32,173,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales and services

24

 

  (4,786,097)

 

  (4,751,844)

 

   (14,439,206)

 

   (14,327,557)

 

  (5,102,307)

 

  (5,095,718)

 

   (15,426,953)

 

   (15,172,547)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

   4,795,982

 

   4,879,650

 

13,305,162

 

15,438,163

 

   5,662,595

 

  5,790,231

 

16,950,308

 

17,000,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (expenses)

 

 

  (2,404,190)

 

  (3,922,622)

 

  (7,614,988)

 

   (11,946,475)

 

  (2,916,666)

 

  (4,075,283)

 

  (9,217,666)

 

   (12,144,321)

Selling expenses

24

 

  (2,916,086)

 

  (3,199,016)

 

  (8,992,970)

 

  (9,643,209)

 

  (3,162,840)

 

  (3,324,498)

 

  (9,653,228)

 

  (9,812,347)

General and administrative expenses

24

 

  (603,334)

 

  (601,412)

 

  (1,816,451)

 

  (1,805,889)

 

  (624,738)

 

  (626,039)

 

  (1,896,390)

 

  (1,834,996)

Other operating income

25

 

   1,643,421

 

87,729

 

   4,338,824

 

   267,286

 

   1,554,155

 

88,450

 

   3,780,383

 

   270,572

Other operating expenses

25

 

  (528,191)

 

  (209,923)

 

  (1,144,391)

 

  (764,663)

 

  (683,243)

 

  (213,196)

 

  (1,448,431)

 

  (767,550)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit

 

 

   2,391,792

 

   957,028

 

   5,690,174

 

   3,491,688

 

   2,745,929

 

   1,714,948

 

   7,732,642

 

   4,856,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial income

26

 

   1,343,614

 

   451,807

 

   3,591,085

 

   1,428,874

 

   1,371,964

 

   478,441

 

   3,699,511

 

   1,513,353

Financial expenses

26

 

  (709,216)

 

  (651,613)

 

  (1,723,061)

 

  (2,223,033)

 

  (718,257)

 

  (648,953)

 

  (1,747,420)

 

  (2,238,523)

Equity in results of investees

11

 

  237,599

 

   654,357

 

   1,384,419

 

   1,079,141

 

  (5,541)

 

  13

 

  (4,914)

 

   1,362

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

   3,263,789

 

   1,411,579

 

   8,942,617

 

   3,776,670

 

   3,394,095

 

   1,544,449

 

   9,679,819

 

   4,132,616

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income and social contribution taxes

6

 

   (86,525)

 

  (188,863)

 

  (1,501,037)

 

  (684,835)

 

  (216,831)

 

  (321,733)

 

  (2,238,239)

 

  (1,040,781)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the period

 

 

   3,177,264

 

   1,222,716

 

   7,441,580

 

   3,091,835

 

   3,177,264

 

   1,222,716

 

   7,441,580

 

   3,091,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

22

 

1.76

 

  0.68

 

4.13

 

  1.72

 

 

 

 

 

 

 

 

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

22

 

1.94

 

  0.75

 

4.55

 

  1.89

 

 

 

 

 

 

 

 

 


 
 

 

TELEFÔNICA BRASIL S.A.

Statements of Changes in Equity

Nine-month periods ended September 30, 2018 and 2017

(In thousands of reais)

 

(A free translation of the original in Portuguese)

 

 

 

Capital reserves

 

Income reserves

 

 

 

 

 

 

 

 

 

Capital

 

Special goodwill reserve

 

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, 2016

  63,571,416

 

   63,074

 

1,297,297

 

  (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)

Unclaimed dividends and interest on equity

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   72,840

 

  -

 

  -

 

   72,840

Repurchase of preferred shares

  -

 

 -

 

  -

 

  (32)

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  (32)

Preferred shares delivered referring to the judicial process of expansion plan

  -

 

  -

 

  -

 

  2

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  2

Transfer of tax incentives - DIPJ adjustment

  -

 

  -

 

  -

 

  -

 

  -

 

8,057

 

  -

 

   (8,057)

 

  -

 

  -

 

   -  

Other comprehensive income

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

    6,034

 

6,034

Equity transactions (Note 1 c)

  -

 

  -

 

  (59,029)

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  (59,029)

Net income for the period

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

3,091,835

 

  -

 

  -

 

3,091,835

Interim interest on equity

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   (930,000)

 

  -

 

  -

 

   (930,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at September 30, 2017

  63,571,416

 

   63,074

 

1,238,268

 

  (87,820)

 

1,907,905

 

   25,126

 

550,000

 

2,226,618

 

   -  

 

  17,495

 

  69,512,082

Unclaimed dividends and interest on equity

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   28,938

 

  -

 

  -

 

   28,938

Repurchase of preferred shares

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   -  

Transfer of tax incentives - DIPJ adjustment

  -

 

  -

 

  -

 

  -

 

  -

 

2,758

 

  -

 

   (2,758)

 

  -

 

  -

 

   -  

Other comprehensive income

  -

 

 -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   (113,811)

 

  -

 

3,833

 

   (109,978)

Net income for the period

  -

 

     -

 

  -

 

  -

 

  -

 

  -

 

  -

 

1,516,955

 

  -

 

  -

 

1,516,955

Allocation of income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Legal reserve

  -

 

  -

 

  -

 

  -

 

230,439

 

  -

 

  -

 

   (230,439)

 

  -

 

  -

 

   -  

  Interim interest on equity

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   (1,486,639)

 

  -

 

  -

 

   (1,486,639)

  Reversal of expansion and Modernization Reserve

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   (550,000)

 

550,000

 

  -

 

  -

 

   -  

  Expansion and Modernization Reserve

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

297,000

 

   (297,000)

 

  -

 

  -

 

   -  

  Additional proposed dividends

  -

 

     -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   (2,191,864)

 

2,191,864

 

  -

 

   -  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2017

  63,571,416

 

   63,074

 

1,238,268

 

  (87,820)

 

2,138,344

 

   27,884

 

297,000

 

   -  

 

2,191,864

 

  21,328

 

  69,461,358

Effects of the initial adoption of IFRS 9 and 15, net of taxes

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   (138,663)

 

  -

 

  -

 

   (138,663)

Payment of additional dividend for 2017

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   (2,191,864)

 

  -

 

   (2,191,864)

Unclaimed dividends and interest on equity

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   76,520

 

  -

 

  -

 

   76,520

Transfer of tax incentives - DIPJ adjustment

  -

 

  -

 

  -

 

  -

 

  -

 

8,409

 

  -

 

   (8,409)

 

  -

 

  -

 

   -  

Other comprehensive income

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  -

 

  12,565

 

   12,565

Net income for the period

  -

 

     -

 

  -

 

  -

 

  -

 

  -

 

  -

 

7,441,580

 

  -

 

  -

 

7,441,580

Interim interest on equity

  -

 

 -

 

  -

 

  -

 

  -

 

  -

 

  -

 

   (3,200,000)

 

  -

 

  -

 

   (3,200,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at September 30, 2018

  63,571,416

 

  63,074

 

1,238,268

 

  (87,820)

 

2,138,344

 

   36,293

 

297,000

 

4,171,028

 

   -  

 

  33,893

 

  71,461,496

 


 
 

 

 

TELEFÔNICA BRASIL S.A.

Statements of Other Comprehensive Income

Three and nine-month periods ended September 30, 2018 and 2017

(In thousands of reais)

 

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

 

Three-month periods ended

 

Nine-month periods ended

 

Three-month periods ended

 

Nine-month periods ended

 

Note

 

09.30.18

 

09.30.17

 

09.30.18

 

09.30.17

 

09.30.18

 

09.30.17

 

09.30.18

 

09.30.17

Net income for the period

 

 

3,177,264

 

    1,222,716

 

7,441,580

 

3,091,835

 

3,177,264

 

1,222,716

 

7,441,580

 

3,091,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

2,702

 

   (3,979)

 

  12,834

 

5,770

 

2,702

 

   (3,979)

 

  12,834

 

5,770

Gains (losses) on derivative financial instruments

30

 

   (490)

 

   (5,063)

 

   (1,972)

 

   (1,095)

 

   (490)

 

   (5,063)

 

   (1,972)

 

   (1,095)

Taxes

 

 

166

 

1,721

 

670

 

372

 

166

 

1,721

 

670

 

372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative Translation Adjustments (CTA) on transactions in foreign currency

11

 

3,049

 

  (637)

 

  14,136

 

6,493

 

3,049

 

   (637)

 

  14,136

 

6,493

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest in comprehensive income of subsidiaries

11

 

  (23)

 

  -

 

  -

 

  -

 

  (23)

 

  -

 

  -

 

  -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (losses) that can not be reclassified into income (losses) in subsequent periods

 

 

   (169)

 

   44

 

   (269)

 

264

 

   (169)

 

   44

 

   (269)

 

264

Unrealized gains on investments available for sale

11

 

   (257)

 

   66

 

   (408)

 

400

 

   (257)

 

   66

 

   (408)

 

400

Taxes

 

 

   88

 

  (22)

 

139

 

   (136)

 

   88

 

  (22)

 

139

 

   (136)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

2,533

 

   (3,935)

 

  12,565

 

    6,034

 

2,533

 

   (3,935)

 

  12,565

 

6,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income for the period - net of taxes

 

 

3,179,797

 

1,218,781

 

7,454,145

 

3,097,869

 

3,179,797

 

1,218,781

 

7,454,145

 

3,097,869

 

 


 
 

 

TELEFÔNICA BRASIL S.A.

Consolidated Statements of Cash Flows

Nine-month periods ended September 30, 2018 and 2017

(In thousands in reais)

 

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

09.30.18

 

09.30.17

 

09.30.18

 

09.30.17

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

8,942,617

 

3,776,670

 

9,679,819

 

4,132,616

Ajustement for:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

6,019,692

 

5,842,396

 

6,045,916

 

5,862,808

Foreign exchange on loans and derivative financial instruments

 

  37,579

 

  46,670

 

  39,176

 

  43,719

Monetary assets and liabilities

 

614,751

 

476,343

 

614,356

 

478,973

Equity pickup

 

   (1,384,419)

 

   (1,079,141)

 

4,914

 

   (1,362)

Loss on write-off/sale of assets

 

4,453

 

  17,512

 

4,777

 

  12,654

Provision for impairment - accounts receivable

 

1,011,896

 

1,037,677

 

1,168,936

 

1,108,925

Change in liability provisions

 

   (272,570)

 

176,907

 

   (235,954)

 

121,490

Write-off and reversals for impairment - inventories

 

(31,461)

 

(45,899)

 

(33,402)

 

(43,184)

Pension plans and other post-retirement benefits

 

  35,593

 

  23,117

 

  36,860

 

  23,700

Provisions for tax, civil, labor and regulatory contingencies

 

983,676

 

640,383

 

995,695

 

650,654

Interest expense

 

380,371

 

770,991

 

380,371

 

770,991

Others

 

   (3,210)

 

  10,383

 

   (3,464)

 

  10,383

 

 

 

 

 

 

 

 

 

Changes in assets and liabilities

 

 

 

 

 

 

 

 

Trade accounts receivable

 

   (1,340,124)

 

   (805,214)

 

   (1,509,231)

 

   (1,122,090)

Inventories

 

(65,764)

 

  63,800

 

(77,156)

 

  72,987

Taxes recoverable

 

   (5,985,851)

 

   (269,874)

 

   (5,863,914)

 

   (240,862)

Prepaid expenses

 

(83,143)

 

(62,142)

 

(80,719)

 

(68,456)

Other assets

 

270,279

 

(79,749)

 

(14,304)

 

  89,238

Personnel, social charges and benefits

 

  31,804

 

  43,226

 

  39,861

 

  56,841

Trade accounts payable

 

652,129

 

298,318

 

987,401

 

(12,126)

Taxes, charges and contributions

 

(33,764)

 

494,612

 

(74,001)

 

509,268

Provisions for tax, civil, labor and regulatory contingencies

 

   (3,639,390)

 

   (804,743)

 

   (3,651,633)

 

   (828,958)

Other liabilities

 

   (172,733)

 

   (892,876)

 

   (164,089)

 

   (860,529)

 

 

   (2,970,206)

 

5,902,697

 

   (1,389,604)

 

6,635,064

 

 

 

 

 

 

 

 

 

Cash generated from operations

 

5,972,411

 

9,679,367

 

8,290,215

 

  10,767,680

 

 

 

 

 

 

 

 

 

Interest paid

 

   (410,585)

 

   (695,802)

 

   (410,585)

 

   (695,802)

Income and social contribution taxes paid

 

(11,841)

 

  -

 

   (529,039)

 

   (394,075)

 

 

 

 

 

 

 

 

 

Net cash (used in) generated by operating activities

 

5,549,985

 

8,983,565

 

7,350,591

 

9,677,803

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Additions to PP&E and intangible assets and others

 

   (5,673,471)

 

   (6,105,205)

 

   (5,894,024)

 

   (6,207,699)

Cash received from sale of PP&E items

 

3,883

 

  18,267

 

3,883

 

  23,825

Cash paid for acquisition of companies

 

  -

 

  -

 

  -

 

   (250,000)

Redemption of judicial deposits

 

2,701,127

 

  49,816

 

2,704,974

 

  49,762

Dividends and interest on equity received

 

1,586,709

 

384,588

 

  -

 

  -

Cash and cash equivalents by incorporation

 

  -

 

  -

 

  -

 

  43,351

Others

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash (used in) generated by investing activities

 

   (1,381,752)

 

   (5,652,534)

 

   (3,185,167)

 

   (6,340,761)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Payment of loans, financing and debentures

 

   (2,524,301)

 

   (3,551,465)

 

   (2,524,301)

 

   (3,551,465)

Loans and financing obtained

 

  -

 

2,039,878

 

  -

 

2,039,878

Received of derivative financial instruments

 

  96,108

 

  81,525

 

  96,726

 

  85,159

Payment of derivative financial instruments

 

(68,297)

 

   (140,470)

 

(71,209)

 

   (140,475)

Dividend and interest on equity paid

 

   (2,003,224)

 

   (1,304,161)

 

   (2,003,224)

 

   (1,304,161)

Treasury shares

 

  -

 

  (32)

 

  -

 

  (32)

 

 

 

 

 

 

 

 

 

Net cash (used in) generated by financing activities

 

   (4,499,714)

 

   (2,874,725)

 

   (4,502,008)

 

   (2,871,096)

 

 

 

 

 

 

 

 

 

Increase (decrease) in cash and cash equivalents

 

   (331,481)

 

456,306

 

   (336,584)

 

465,946

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at the beginning of the year

 

3,681,173

 

4,675,627

 

4,050,338

 

5,105,110

Cash and cash equivalents at the end of the  year

 

3,349,692

 

5,131,933

 

3,713,754

 

5,571,056

 


 
 

 

TELEFÔNICA BRASIL S.A.

Statements of Value Added

Nine-month periods ended September 30, 2018 and 2017

(In thousands in reais)

 

(A free translation of the original in Portuguese)

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

09.30.18

 

09.30.17

 

09.30.18

 

09.30.17

 

 

 

 

 

 

 

 

 

Revenues

 

  42,171,479

 

  41,620,108

 

  46,400,252

 

  44,297,292

Sale of goods and services

 

  38,064,521

 

  41,795,634

 

  43,312,730

 

  44,515,392

Other revenues

 

5,118,854

 

862,151

 

4,256,458

 

890,825

Impairment losses of trade accounts receivable

 

   (1,011,896)

 

   (1,037,677)

 

   (1,168,936)

 

   (1,108,925)

 

 

 

 

 

 

 

 

 

Inputs acquired from third parties

 

(13,755,316)

 

(14,180,624)

 

(15,034,545)

 

(15,039,541)

Cost of goods and products sold and services rendered

 

   (7,224,505)

 

   (7,066,689)

 

   (8,265,479)

 

   (7,913,642)

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

 

   (6,557,818)

 

   (7,111,989)

 

   (6,797,691)

 

   (7,120,995)

Loss/recovery of assets

 

  27,007

 

   (1,946)

 

  28,625

 

   (4,904)

 

 

 

 

 

 

 

 

 

Gross value added

 

  28,416,163

 

  27,439,484

 

  31,365,707

 

  29,257,751

 

 

 

 

 

 

 

 

 

Withholdings

 

   (6,019,692)