vivitr3q13_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, 2013

 

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

X 

 

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

X 

 

 

 

 

 

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PKF(2) 

 

 

TELEFÔNICA BRASIL S.A.

 

 

QUARTERLY INFORMATION

 

SEPTEMBER 30, 2013

 

 

 

 

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PKF(2) 

                                             

CE-0853/13 ING

 

REPORT OF QUARTERLY INFORMATION REVIEW

 

 

 

To the Shareholders, Board Members and Directors of

TELEFÔNICA BRASIL S.A.

São Paulo - SP

 

 

Introduction

 

We have reviewed the individual and consolidated interim accounting information of TELEFÔNICA BRASIL S.A. and subsidiaries, contained in the ITR (Quarterly Information Form), referring to the quarter ended on September 30, 2013, which comprises the balance sheet and related statements of income and of comprehensive income for the three and nine-month period then ended, and of changes in shareholders’ equity and of cash flows for the nine-month period then ended, including the notes thereto.

 

The management is responsible for the preparation of the individual interim accounting information according to CPC Technical Pronouncement CPC 21 – Interim Statement and interim consolidated accounting information according to CPC 21 and international standard IAS 34 – Interim Financial Reporting, issued by International Accounting Standards Board – IASB, as well as for the presentation of such information according to standards issued by CVM (SEC), applicable to the preparation of 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 the Brazilian and international standards of review of interim information (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 information consists of inquiries, mainly to those responsible for financial and accounting matters, and the application of analytical procedures and other review procedures.

 

The scope of a review is significantly less in scope than an audit and, consequently, it did not allow us to obtain assurance that we became aware of all significant matters which could be identified in an audit. Accordingly, we did not express an audit opinion.

 

 

 

 

Conclusion on individual interim information

 

Based on our review, we are not aware of any fact which makes us believe that the individual interim accounting information included in the aforesaid quarterly information was not prepared, in all material respects, in accordance with CPC 21 applicable to the preparation of Quarterly Information (ITR) and presented in accordance with the Brazilian SEC (CVM) regulations.

 

2

 

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PKF(2) 

                                             

 

Conclusion on consolidated interim information

 

Based on our review, we are not aware of any fact which makes us believe that the consolidated interim accounting information included in the aforesaid quarterly information was not prepared, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of Quarterly Information (ITR) and presented in accordance with Brazilian SEC (CVM) regulations.

 

 

Emphasis

 

Restatement of corresponding amounts

 

As mentioned in note 2, as a consequence of changes in the accounting policy introduced by the adoption of IFRS 11, the corresponding amounts, individual and consolidated, related to the balance sheet of the year ended December 31, 2012, and the interim accounting information related to the statement of income, of comprehensive income, of changes in shareholders’ equity, of cash flow and of value added (supplementary information), referring to the nine-month period ended September 30, 2013, presented for comparison purposes, were adjusted and are being restated according to CPC 23 – Políticas Contábeis, Mudança de Estimativa e Retificação de Erro (Accounting Policies, Change in Estimate and Ratification of Error) and CPC 26(R1) - Apresentação das Demonstrações Contábeis (Presentation of Financial Statements). Our conclusion did not change regarding this matter.

 

 

Other matters

 

Interim statement of value added

 

We have also reviewed the individual and consolidated statement of value added (SVA), referring to the nine-month period ended September 30, 2013, the presentation of which in the interim information is required according to standards issued by CVM, regulations applicable to the preparation of the Quarterly Information – ITR and considered as supplementary information by IFRS’s standards, which do not require the presentation of the SVA. These statements were submitted to the same review procedures previously described and, based on our review, we have no knowledge of any fact which could make us believe that they were not prepared, in all material aspects, in accordance with individual and consolidated interim accounting information taken as a whole.

 

São Paulo, November 06, 2013.

 

 

logo_NEW 

CRC Nº 2SP013002/O-3

 

 

 

 

 

Clóvis Ailton Madeira

CTCRC Nº 1SP106895/O-1 "S"

3

 

TELEFÔNICA BRASIL S. A.

 

 

 

 

 

 

Balance sheets

 

 

 

 

 

 

At September 30, 2013 and December 31, 2012

 

 

 

 

 

 

(In thousands of reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

 

 

Company

 

Consolidated

ASSETS

Note

 

09.30.13

 

12.31.12

 

09.30.13

 

12.31.12

 

LIABILITIES AND EQUITY

Note

 

09.30.13

 

12.31.12

 

09.30.13

 

12.31.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

18,192,709

 

6,515,094

 

18,531,767

 

16,209,181

 

CURRENT LIABILITIES

 

 

14,749,922

 

5,910,070

 

14,718,773

 

13,536,792

Cash and cash equivalents

3

 

8,505,037

 

3,079,282

 

8,630,208

 

7,133,485

 

Personnel, social charges and benefits

13

 

441,348

 

205,780

 

445,988

 

416,252

Short-term investments pledged as collateral

3

 

411,010

 

-

 

411,010

 

-

 

Trade accounts payable

14

 

6,073,695

 

2,191,047

 

6,061,449

 

5,889,068

Trade accounts receivable, net

4

 

5,471,495

 

2,150,724

 

5,688,339

 

5,512,272

 

Taxes, charges and contributions

15

 

1,520,258

 

529,055

 

1,563,592

 

1,781,250

Inventories

5

 

614,509

 

24,403

 

640,604

 

387,809

 

Loans, financing and lease

16.1

 

1,328,194

 

756,371

 

1,328,194

 

1,270,122

Taxes recoverable

6.1

 

2,131,226

 

602,328

 

2,160,812

 

2,052,421

 

Debentures

16.2

 

734,351

 

702,215

 

734,351

 

702,215

Judicial deposits and garnishments

7

 

179,085

 

-

 

179,085

 

126,625

 

Dividend and interest on equity

17

 

2,347,048

 

467,831

 

2,347,048

 

467,831

Derivative transactions

34

 

61,415

 

39,197

 

61,415

 

41,109

 

Provisions

18

 

541,835

 

334,852

 

541,835

 

496,790

Prepaid expenses

8

 

444,812

 

26,610

 

446,371

 

248,337

 

Derivative transactions

34

 

56,466

 

8,747

 

56,466

 

29,586

Dividend and interest on equity

17

 

1,140

 

394,105

 

1,140

 

1,140

 

Deferred income

19

 

792,674

 

69,743

 

794,065

 

734,573

Other assets

9

 

372,980

 

198,445

 

312,783

 

705,983

 

Reverse split of fractional shares

 

 

389,272  

 

345,953

 

389,272

 

389,510

 

 

 

 

 

 

 

 

 

 

 

Authorization license

 

 

76,016

 

-

 

76,016

 

994,977

NONCURRENT ASSETS

 

 

53,315,607

 

51,067,347

 

52,983,891

 

54,041,911

 

Other liabilities

20

 

448,765

 

298,476

 

380,497

 

364,618

Short-term investments pledged as collateral

3

 

119,376

 

23,920

 

119,597

 

109,708

 

 

 

 

 

 

 

 

 

 

 

Trade accounts receivable, net

4

 

144,866

 

-

 

241,976

 

93,378

 

NONCURRENT LIABILITIES

 

 

13,127,319

 

6,991,251

 

13,165,810

 

12,033,180

Taxes recoverable

6.1

 

382,194

 

549,225

 

382,194

 

738,965

 

Taxes, charges and contributions

15

 

504,310

 

30,057

 

526,550

 

488,749

Deferred taxes

6.2

 

-

 

-

 

200,129

 

1,027,888

 

Deferred taxes

6.2

 

705,652

 

1,216,651

 

705,652

 

1,216,651

Judicial deposits and garnishments

7

 

4,169,861

 

3,068,256

 

4,193,735

 

3,909,268

 

Loans, financing and lease

16.1

 

3,588,380

 

582,422

 

3,588,380

 

3,774,461

Derivative transactions

34

 

375,764

 

21,465

 

375,764

 

286,278

 

Debentures

16.2

 

3,562,418

 

2,253,690

 

3,562,418

 

2,253,690

Prepaid expenses

8

 

28,042

 

16,720

 

28,678

 

31,396

 

Provisions

18

 

3,923,689

 

2,457,632

 

3,942,311

 

3,453,637

Other assets

9

 

151,924

 

75,587

 

130,100

 

92,308

 

Derivative transactions

34

 

12,407

 

3,733

 

12,407

 

26,545

Investments

10

 

11,044,532

 

21,561,061

 

134,154

 

142,881

 

Deferred income

19

 

265,928

 

39,022

 

267,591

 

303,362

Property, plant and equipment, net

11

 

17,413,952

 

10,020,263

 

17,462,604

 

17,604,144

 

Post-retirement benefit plans

33

 

414,798

 

372,368

 

414,798

 

392,269

Intangible assets, net

12

 

19,485,096

 

15,730,850

 

29,714,960

 

30,005,697

 

Other liabilities

20

 

149,737

 

35,676

 

145,703

 

123,816

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY

 

 

43,631,075

 

44,681,120

 

43,631,075

 

44,681,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

43,631,075

 

44,681,120

 

43,631,075

 

44,681,120

 

 

 

 

 

 

 

 

 

 

 

Capital

21

 

37,798,110

 

37,798,110

 

37,798,110

 

37,798,110

 

 

 

 

 

 

 

 

 

 

 

Capital reserves

21

 

2,686,897

 

2,686,897

 

2,686,897

 

2,686,897

 

 

 

 

 

 

 

 

 

 

 

Income reserves

21

 

1,101,699

 

1,100,000

 

1,101,699

 

1,100,000

 

 

 

 

 

 

 

 

 

 

 

Premium on acquisition of non-controlling interest

21

 

(70,448)

 

(70,448)

 

(70,448)

 

(70,448)

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

21

 

13,272

 

17,792

 

13,272

 

17,792

 

 

 

 

 

 

 

 

 

 

 

Proposed additional dividend

21

 

-

 

3,148,769

 

-

 

3,148,769

 

 

 

 

 

 

 

 

 

 

 

Retained earnings

21

 

2,101,545

 

-

 

2,101,545

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

71,508,316

 

57,582,441

 

71,515,658

 

70,251,092

 

TOTAL LIABILITIES AND EQUITY

 

 

71,508,316

 

57,582,441

 

71,515,658

 

70,251,092

 

 

4

 
 

TELEFÔNICA BRASIL S. A.

Income statements

Nine-month periods ended September 30, 2013 and 2012

(In thousands of reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

Note

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

OPERATING REVENUE, NET

22

 

14,562,788

 

9,634,159

 

25,665,195

 

25,012,254

 

 

 

 

 

 

 

 

 

 

Cost of services rendered and products sold

23

 

(8,287,473)

 

(5,721,941)

 

(13,203,611)

 

(12,284,293)

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

 

6,275,315

 

3,912,218

 

12,461,584

 

12,727,961

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (EXPENSES)

 

 

(3,298,820)

 

(612,545)

 

(8,976,143)

 

(7,933,874)

Selling expenses

24

 

(3,991,814)

 

(2,344,813)

 

(7,039,241)

 

(6,528,318)

General and administrative expenses

25

 

(838,181)

 

(529,718)

 

(1,680,193)

 

(1,596,435)

Equity pickup

10

 

1,831,343

 

2,436,034

 

(4,790)

 

(284)

Other operating income (expenses), net

26

 

(300,168)

 

(174,048)

 

(251,919)

 

191,163

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME BEFORE FINANCIAL INCOME (EXPENSES)

 

 

2,976,495

 

3,299,673

 

3,485,441

 

4,794,087

 

 

 

 

 

 

 

 

 

 

Financial income

27

 

856,722

 

398,637

 

1,349,681

 

831,990

Financial expenses

27

 

(1,030,529)

 

(474,299)

 

(1,480,699)

 

(997,917)

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE TAXES

 

 

2,802,688

 

3,224,011

 

3,354,423

 

4,628,160

 

 

 

 

 

 

 

 

 

 

Income and social contribution taxes

28

 

(318,059)

 

(244,688)

 

(869,794)

 

(1,650,229)

 

 

 

 

 

 

 

 

 

 

NET INCOME FOR THE PERIOD

 

 

2,484,629

 

2,979,323

 

2,484,629

 

2,977,931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

Non-controlling interest

 

 

-

 

-

 

-

 

(1,392)

Controlling interest

 

 

2,484,629

 

2,979,323

 

2,484,629

 

2,979,323

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per common share

 

 

2.07

 

2.49

 

 

 

 

Basic and diluted earnings per preferred share

 

 

2.28

 

2.74

 

 

 

 

 

 

 

5

 

TELEFÔNICA BRASIL S. A.

Statements of changes in equity

Period ended September 30, 2013

(In thousands of reais)

 

 

 

 

 

Capital reserves

 

Income reserves

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

Capital

 

Premium on acquisition of non-controlling interest

 

Special goodwill reserve

 

Capital reserve

 

Treasury stock

 

Legal reserve

 

Incentive reserve

 

Retained earnings

 

Additional dividend proposed

 

Financial instruments available for sale

 

Derivative transactions

 

Translation difference of investments abroad

 

Company’s equity

 

Non-controlling interest

 

Total equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2011

37,798,110

 

(29,929)

 

63,074

 

2,735,930

 

(79,339)

 

877,322

 

-

 

-

 

1,953,029

 

9,884

 

1,995

 

(4,359)

 

43,325,717

 

5,068

 

43,330,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional dividend proposed for 2011

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,953,029)

 

-

 

-

 

-

 

(1,953,029)

 

-

 

(1,953,029)

Expired dividends and interest on equity

-

 

-

 

-

 

-

 

-

 

-

 

-

 

62,340

 

-

 

-

 

-

 

-

 

62,340

 

-

 

62,340

Other changes

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(3,240)

 

-

 

-

 

-

 

-

 

(3,240)

 

(23)

 

(3,263)

Repurchase of shares

-

 

-

 

-

 

-

 

(32,768)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(32,768)

 

-

 

(32,768)

Noncontrolling interest

-

 

(40,519)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(40,519)

 

(3,653)

 

(44,172)

Other comprehensive income

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(3,815)

 

5,048

 

4,271

 

5,504

 

-

 

5,504

Net income for the period

-

 

-

 

-

 

-

 

-

 

-

 

-

 

2,979,323

 

-

 

-

 

-

 

-

 

2,979,323

 

(1,392)

 

2,977,931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2012

37,798,110

 

(70,448)

 

63,074

 

2,735,930

 

(112,107)

 

877,322

 

-

 

3,038,423

 

-

 

6,069

 

7,043

 

(88)

 

44,343,328

 

-

 

44,343,328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expired dividends and interest on equity

-

 

-

 

-

 

-

 

-

 

-

 

-

 

27,352

 

-

 

-

 

-

 

-

 

27,352

 

-

 

27,352

Other comprehensive income

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(46,056)

 

-

 

161

 

3,147

 

1,460

 

(41,288)

 

-

 

(41,288)

Net income for the year

-

 

-

 

-

 

-

 

-

 

-

 

-

 

1,474,250

 

-

 

-

 

-

 

-

 

1,474,250

 

-

 

1,474,250

Allocation of income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Legal reserve

-

 

-

 

-

 

-

 

-

 

222,678

 

-

 

(222,678)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

Interim dividend

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(1,122,522)

 

-

 

-

 

-

 

-

 

(1,122,522)

 

-

 

(1,122,522)

Additional dividend proposed

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(3,148,769)

 

3,148,769

 

-

 

-

 

-

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at December 31, 2012

37,798,110

 

(70,448)

 

63,074

 

2,735,930

 

(112,107)

 

1,100,000

 

-

 

-

 

3,148,769

 

6,230

 

10,190

 

1,372

 

44,681,120

 

-

 

44,681,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional dividend proposed for 2012

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(3,148,769)

 

-

 

-

 

-

 

(3,148,769)

 

-

 

(3,148,769)

Expired dividends and interest on equity

-

 

-

 

-

 

-

 

-

 

-

 

-

 

59,045

 

-

 

-

 

-

 

-

 

59,045

 

-

 

59,045

Tax incentives – July to September 2013

-

 

-

 

-

 

-

 

-

 

-

 

1,699

 

(1,699)

 

-

 

-

 

-

 

-

 

-

 

-

 

-

Other comprehensive income

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(430)

 

-

 

(7,574)

 

(3,789)

 

6,843

 

(4,950)

 

-

 

(4,950)

Net income for the period

-

 

-

 

-

 

-

 

-

 

-

 

-

 

2,484,629

 

-

 

-

 

-

 

-

 

2,484,629

 

-

 

2,484,629

Interim interest on equity

-

 

-

 

-

 

-

 

-

 

-

 

-

 

(440,000)

 

-

 

-

 

-

 

-

 

(440,000)

 

-

 

(440,000)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2013

37,798,110

 

(70,448)

 

63,074

 

2,735,930

 

(112,107)

 

1,100,000

 

1,699

 

2,101,545

 

-

 

(1,344)

 

6,401

 

8,215

 

43,631,075

 

-

 

43,631,075

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding shares (in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,123,269

VPA – equity value of Company’s shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38.84

 

 

 

 

6

 

TELEFÔNICA BRASIL S. A.

Cash flow statements

Nine-month periods ended September 30, 2013 and 2012

(In thousands of reais)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

2013

 

2012

 

2013

 

2012

Cash generated by operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

2,802,688

 

3,224,011

 

3,354,423

 

4,628,160

 

 

 

 

 

 

 

 

 

Items not affecting cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses (revenues) not representing changes in cash

 

1,888,273

 

217,247

 

5,655,164

 

4,615,151

Depreciation and amortization

 

2,709,578

 

1,970,491

 

4,214,142

 

4,054,760

Foreign exchange variation on loans

 

33,701

 

4,424

 

61,193

 

5,226

Monetary variations

 

42,847

 

(10,723)

 

49,703

 

(12,453)

Equity pick-up

 

(1,831,343)

 

(2,436,034)

 

4,790

 

284

Gain (loss) on assets write-off/disposal

 

(47,192)

 

12,059

 

(130,967)

 

(413,829)

Provision for impairment of accounts receivable

 

313,128

 

211,155

 

569,342

 

507,740

Provision (reversal) of accounts payable

 

(4,265)

 

126,092

 

(88,542)

 

(223,910)

Provision (write-offs and reversals) for impairment of inventory

 

(9,381)

 

(1,696)

 

908

 

19,379

Pension plans and other post-employment benefits

 

19,881

 

(3,517)

 

19,737

 

(10,193)

Provisions for tax, labor, civil and regulatory contingencies

 

320,076

 

167,386

 

486,879

 

302,537

Interest expenses

 

335,885

 

184,055

 

443,033

 

387,693

Reversal of provision for demobilization

 

855

 

(188)

 

17,107

 

(6,969)

Provisions for customer loyalty programs

 

1,064

 

-

 

7,834

 

13,505

Other

 

3,439

 

(6,257)

 

5

 

(8,619)

 

 

 

 

 

 

 

 

 

(Increase) decrease in operating assets:

 

(712,481)

 

130,966

 

(1,816,859)

 

(335,817)

Trade accounts receivable

 

(618,183)

 

(285,383)

 

(894,007)

 

(599,485)

Inventories

 

(134,273)

 

6,716

 

(253,703)

 

(11,408)

Taxes recoverable

 

(47,488)

 

590,933

 

(375,759)

 

557,964

Other current assets

 

187,722

 

(36,618)

 

(297,503)

 

(29,433)

Other noncurrent assets

 

(100,259)

 

(144,682)

 

4,113

 

(253,455)

 

 

 

 

 

 

 

 

 

Increase (decrease) in operating liabilities:

 

53,111

 

(817,138)

 

(379,645)

 

(2,258,649)

Personnel, social charges and benefits

 

25,391

 

(4,550)

 

29,736

 

(30,259)

Trade accounts payable

 

70,813

 

(427,130)

 

306,503

 

(795,973)

Taxes, charges and contributions

 

439,147

 

(123,265)

 

703,028

 

(69,753)

Interest paid

 

(307,443)

 

(150,380)

 

(431,732)

 

(321,332)

Income and social contribution taxes paid

 

-

 

(9,484)

 

(807,878)

 

(868,344)

Other current liabilities

 

(200,473)

 

(91,294)

 

(155,621)

 

(98,444)

Other noncurrent liabilities

 

25,676

 

(11,035)

 

(23,681)

 

(74,544)

Total cash from operating activities

 

4,031,591

 

2,755,086

 

6,813,083

 

6,648,845

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advance for future capital contribution in subsidiaries

 

(65,250)

 

-

 

-

 

-

Additions to PP&E and intangible assets (net of donations)

 

(2,644,160)

 

(1,556,884)

 

(4,657,961)

 

(3,535,618)

Cash received from sale of PP&E items

 

41,268

 

6,274

 

430,085

 

596,993

Cash from investing activities

 

-

 

7,551

 

-

 

10,069

Capital increase in subsidiaries

 

-

 

(23,638)

 

-

 

-

Redemption of (short-term) investments in guarantee

 

(143,195)

 

-

 

(386,401)

 

-

Dividends and interest on equity received

 

1,320,449

 

1,208,218

 

-

 

8,217

Effect of cash and cash equivalents per merger/split-off

 

3,371,178

 

-

 

-

 

-

Total cash from (used in) investing activities

 

1,880,290

 

(358,479)

 

(4,614,277)

 

(2,920,339)

 

 

 

 

 

 

 

 

 

Net cash from (used in) financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payment of loans, financing and debentures

 

(444,903)

 

(742,766)

 

(669,566)

 

(1,061,553)

Loans and debentures raised

 

1,551,019

 

2,000,000

 

1,569,015

 

2,815,302

Derivative agreements payment, net

 

(7,498)

 

(7,944)

 

(16,788)

 

(41,012)

Payments referring to grouping of shares

 

(237)

 

-

 

(237)

 

-

Dividends and interest on equity - paid

 

(1,584,507)

 

(1,573,713)

 

(1,584,507)

 

(1,573,713)

Acquisition of noncontrolling interest

 

-

 

(44,172)

 

-

 

(44,172)

Repurchase of treasury stock

 

-

 

(32,768)

 

-

 

(32,768)

Total cash from (used in) financing activities

 

(486,126)

 

(401,363)

 

(702,083)

 

62,084

 

 

 

 

 

 

 

 

 

Increase in cash and cash equivalents

 

5,425,755

 

1,995,244

 

1,496,723

 

3,790,590

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

3,079,282

 

826,902

 

7,133,485

 

2,889,543

Cash and cash equivalents at end of period

 

8,505,037

 

2,822,146

 

8,630,208

 

6,680,133

 

 

 

 

 

 

 

 

 

Changes in cash and cash equivalents for the period

 

5,425,755

 

1,995,244

 

1,496,723

 

3,790,590

 

 

 

7

 

TELEFÔNICA BRASIL S. A.

Statements of comprehensive income

Nine-month periods ended September 30, 2013 and 2012

(In thousands of reais)

 

 

 

 

 

 

 

 

 

 

 

Company

 

Consolidated

 

 

2013

 

2012

 

2013

 

2012

Net income for the period

 

2,484,629

 

2,979,323

 

2,484,629

 

2,977,931

 

 

 

 

 

 

 

 

 

Unrealized losses with investments available for sale

 

(11,476)

 

(5,781)

 

(11,476)

 

(5,781)

Taxes

 

3,902

 

1,966

 

3,902

 

1,966

 

 

(7,574)

 

(3,815)

 

(7,574)

 

(3,815)

 

 

 

 

 

 

 

 

 

Cumulative translation adjustments – operations in foreign currency

 

6,843

 

4,271

 

6,843

 

4,271

 

 

 

 

 

 

 

 

 

Other comprehensive income to be reclassified o gains (losses) for subsequent periods

 

(731)

 

456

 

(731)

 

456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial losses and limitation effect of the assets of surplus plans

 

(55)

 

-

 

(651)

 

-

Taxes

 

19

 

-

 

221

 

-

 

 

(36)

 

-

 

(430)

 

-

 

 

 

 

 

 

 

 

 

Gains (losses) – derivative transactions

 

(5,741)

 

-

 

(5,741)

 

7,649

Taxes

 

1,952

 

-

 

1,952

 

(2,601)

 

 

(3,789)

 

-

 

(3,789)

 

5,048

 

 

 

 

 

 

 

 

 

Interest in comprehensive income of subsidiaries

 

(394)

 

5,048

 

-

 

-

 

 

 

 

 

 

 

 

 

Other comprehensive income not to be reclassified o gains (losses) for subsequent periods

 

(4,219)

 

5,048

 

(4,219)

 

5,048

 

 

 

 

 

 

 

 

 

Comprehensive income for the period

 

2,479,679

 

2,984,827

 

2,479,679

 

2,983,435

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

Non-controlling interest

 

-

 

-

 

-

 

(1,392)

Controlling interest

 

2,479,679

 

2,984,827

 

2,479,679

 

2,984,827

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per common share

 

2.07

 

2.49

 

 

 

 

Basic and diluted earnings per preferred share

 

2.28

 

2.74

 

 

 

 

 

 

8

 

TELEFÔNICA BRASIL S. A.

Statements of value added

Nine-month periods ended September 30, 2013 and 2012

(In thousands of reais)

 

 

Company

 

Consolidated

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

Revenues

 

19,470,099

 

12,850,875

 

34,908,173

 

33,908,114

Sale of products and services

 

19,535,212

 

12,868,683

 

35,043,750

 

33,999,085

Other revenues

 

248,015

 

193,347

 

433,765

 

416,769

Provision for impairment