Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No ___X____.
Registration Form – 2017 – CPFL Energia S.A. Version: 5
Registration data
1. General information |
1 |
2. Address |
2 |
3. Securities |
3 |
4. Auditor information |
4 |
5. Share register |
5 |
6. Investor relations officer |
6 |
7. Shareholders’ department |
7 |
Registration Form – 2017 – CPFL Energia S.A. Version: 5
1. General information
Company name: CPFL ENERGIA S.A.
Date of adoption of company name: 08/06/2002
Type: publicly-held Corporation
Previous company name: Draft II Participações S.A
Date of incorporation: 03/20/1998
CNPJ (Corporate Taxpayer ID): 02.429.144/0001-93
CVM code: 1866-0
CVM registration date: 05/18/2000
CVM registration status: Active
Status starting date: 05/18/2000
Country: Brazil
Country in which the securities
Are held in custody: Brazil
Other countries in which the securities can be traded
Country Date of admission
United States 09/29/2004
Sector of activity: Holding company (Electric Energy)
Description of activity: Holding company
Issuer’s category: Category A
Date of registration in the current category: 01/01/2010
Issuer’s status: Operating
Status starting date: 05/18/2000
Type of ownership control: Private Holding
Date of last change in ownership control: 01/23/2017
Date of last change of fiscal year:
Month/day of the end of fiscal year: 12/31
Issuer´s web address: www.cpfl.com.br
Newspaper or media where issuer discloses its information:
Newspaper or media |
FU |
Diário Oficial do Estado de São Paulo |
SP |
Valor Econômico |
SP |
www.cpfl.com.br/ri |
SP |
www.portalneo1.net |
SP |
www.valor.com.br/valor-ri |
SP |
1
Registration Form – 2017 – CPFL Energia S.A. Version: 5
2. Address
Mail Address: Rodovia Engenheiro Miguel Noel Nascentes Burnier, 1755, Km 2,5, Parque São Quirino, Campinas, SP, Brazil, zip code 13088-140
Telephone (019) 3756-6083, Fax (019) 3756-6089, E-mail: [email protected]
Registered Office Address: Rodovia Engenheiro Miguel Noel Nascentes Burnier, 1755, Km 2,5, Parque São Quirino, Campinas, SP, Brazil, zip code 13088-140
Telephone: (019) 3756-6083, Fax: (019) 3756-6089, E-mail: [email protected]
2
Registration Form – 2017 – CPFL Energia S.A. Version: 5
3. Securities
Share trading
Trading mkt Stock exchange
Managing entity BM&FBOVESPA
Start date 09/29/2004
End date
Trading segment New Market
Start date 9/29/2004
End date
Debenture trading
Trading mkt Organized market
Managing entity CETIP
Start date 05/18/2000
End date
Trading segment Traditional
Start date 05/19/2000
End date
3
Registration Form – 2017 – CPFL Energia S.A. Version: 5
4. Auditor information
Does the issuer have an auditor? Yes
CVM code: 385-9
Type of auditor: Brazilian firm
Independent auditor: KPMG Auditores Independentes
CNPJ (Corporate Taxpayer ID): 57.755.217/0011-09
Period of service: 03/29/2017
Partner in charge Marcio José dos Santos
Period of service 03/29/2017
CPF (Individual Taxpayer ID) 253.206.858-23
4
Registration Form – 2017 – CPFL Energia S.A. Version: 5
5. Share register
Does the company have a service provider: Yes
Corporate name: Banco do Brasil
CNPJ: 00.000.000/0001-91
Period of service: 01/01/2011
Address:
Rua Lélio Gama, 105 – 38º floor, Gecin, Centro, Rio de Janeiro, RJ, Brazil, zip code: 20031-080, Telephone (021) 38083551, Fax: (021) 38086088, e-mail: [email protected]
5
Registration Form – 2017 – CPFL Energia S.A. Version: 5
6. Investor relations officer
Name: Gustavo Estrella
Investor Relations Officer
CPF/CNPJ: 037.234.097-09
Address:
Rodovia Engenheiro Miguel Noel Nascentes Burnier, 1755, Km 2,5, Parque São Quirino, Campinas, SP, Brazil, zip code 13088-140
Telephone (019) 3756-6083, Fax (019) 3756-6089, email: [email protected].
Date when the officer assumed the position: 02/27/2013
Date when the officer left the position:
6
Registration Form – 2017 – CPFL Energia S.A. Version: 5
7. Shareholders’ department
Contact Sérgio Luis Felice
Date when the officer assumed the position: 09/13/2017
Date when the officer left the position:
Address:
Rodovia Engenheiro Miguel Noel Nascentes Burnier, 1755, Km 2,5, Parque São Quirino, Campinas, SP, Brazil, zip code 13088-140
Telephone (019) 3756-8018, email: [email protected]
7
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Table of Contents | |
Company Data | |
Capital Composition | 1 |
Individual financial statements | |
Statement of Financial Position - Assets | 2 |
Statement of Financial Position - Liabilities and Equity | 3 |
Statement of Income | 4 |
Statement of Comprehensive Income | 5 |
Statement of Cash Flows – Indirect Method | 6 |
Statement of Changes in Equity | |
01/01/2017 to 09/30/2017 | 7 |
01/01/2016 to 09/30/2016 | 8 |
Statements of Value Added | 9 |
Consolidated Interim Financial Statements | |
Statement of Financial Position - Assets | 10 |
Statement of Financial Position - Liabilities and Equity | 11 |
Statement of Income | 12 |
Statement of Comprehensive Income | 13 |
Statement of Cash Flows - Indirect Method | 14 |
Statement of Changes in Equity | |
01/01/2017 to 09/30/2017 | 15 |
01/01/2016 to 09/30/2016 | 16 |
Statements of Value Added | 17 |
Comments on performance | 18 |
Notes to Interim financial statements | 27 |
Other relevant information | 89 |
Reports | |
Independent Auditor’s Report - Unqualified | 91 |
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Capital Composition |
|
Number of Shares (In units) |
Closing Date 09/30/2017 |
Paid-in capital |
|
Common |
1,017,914,746 |
Preferred |
0 |
Total |
1,017,914,746 |
Treasury Stock |
0 |
Common |
0 |
Preferred |
0 |
Total |
0 |
1 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Code |
Description |
Current Year 09/30/2017 |
Prior Year 12/31/2016 |
1 |
Total assets |
8,920,264 |
8,908,964 |
1.01 |
Current assets |
442,803 |
791,016 |
1.01.01 |
Cash and cash equivalents |
128,616 |
64,973 |
1.01.06 |
Taxes recoverable |
90,825 |
82,836 |
1.01.06.01 |
Current taxes recoverable |
90,825 |
82,836 |
1.01.06.01.01 |
Income tax and social contribution to be offset |
86,293 |
53,246 |
1.01.06.01.02 |
Other taxes recoverable |
4,532 |
29,590 |
1.01.08 |
Other current assets |
223,362 |
643,207 |
1.01.08.03 |
Others |
223,362 |
643,207 |
1.01.08.03.01 |
Other receivables |
310 |
229 |
1.01.08.03.04 |
Dividends and interest on capital |
223,052 |
642,978 |
1.02 |
Noncurrent assets |
8,477,461 |
8,117,948 |
1.02.01 |
Long-term assets |
221,140 |
250,625 |
1.02.01.06 |
Deferred taxes |
187,327 |
171,073 |
1.02.01.06.02 |
Deferred tax assets |
187,327 |
171,073 |
1.02.01.08 |
Receivables from related parties |
25,619 |
52,582 |
1.02.01.08.02 |
Receivables from subsidiaries |
25,619 |
52,582 |
1.02.01.09 |
Other noncurrent assets |
8,194 |
26,970 |
1.02.01.09.04 |
Escrow deposits |
649 |
710 |
1.02.01.09.10 |
Other receivables |
7,545 |
26,260 |
1.02.02 |
Investments |
8,255,110 |
7,866,100 |
1.02.02.01 |
Equity interests |
8,255,110 |
7,866,100 |
1.02.02.01.02 |
Investments in subsidiaries |
8,255,110 |
7,866,100 |
1.02.03 |
Property, plant and equipment |
1,179 |
1,199 |
1.02.03.01 |
Property, plant and equipment - operational |
1,179 |
1,199 |
1.02.04 |
Intangible assets |
32 |
24 |
1.02.04.01 |
Intangible assets |
32 |
24 |
2 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Individual Financial Statements
Statement of Financial Position – Liabilities and Equity
(In thousands of Brazilian reais – R$) |
|
| |
|
|
|
|
Code |
Description |
Current Year 09/30/2017 |
Prior Year 12/31/2016 |
2 |
Total liabilities |
8,920,264 |
8,908,964 |
2.01 |
Current liabilities |
20,423 |
255,755 |
2.01.02 |
Trade payables |
644 |
3,760 |
2.01.02.01 |
Domestic suppliers |
644 |
3,760 |
2.01.03 |
Taxes payable |
359 |
454 |
2.01.03.01 |
Federal taxes payable |
359 |
453 |
2.01.03.01.02 |
PIS (tax on revenue) |
25 |
15 |
2.01.03.01.03 |
COFINS (tax on revenue) |
155 |
90 |
2.01.03.01.04 |
Other federal taxes |
179 |
348 |
2.01.03.03 |
Municipal taxes |
- |
1 |
2.01.03.03.01 |
Other municipal taxes |
- |
1 |
2.01.04 |
Borrowings |
66 |
15,334 |
2.01.04.02 |
Debentures |
66 |
15,334 |
2.01.04.02.01 |
Debentures |
66 |
15,334 |
2.01.05 |
Other liabilities |
19,354 |
236,207 |
2.01.05.02 |
Others |
19,354 |
236,207 |
2.01.05.02.01 |
Dividends and interest on own capital payable |
3,345 |
218,630 |
2.01.05.02.07 |
Other liabilities |
16,009 |
17,577 |
2.02 |
Noncurrent liabilities |
214,307 |
683,188 |
2.02.01 |
Borrowings |
183,288 |
612,251 |
2.02.01.02 |
Debentures |
183,288 |
612,251 |
2.02.01.02.01 |
Debentures |
183,288 |
612,251 |
2.02.02 |
Other liabilities |
30,462 |
69,929 |
2.02.02.02 |
Others |
30,462 |
69,929 |
2.02.02.02.05 |
Provision for equity interest losses |
- |
19,301 |
2.02.02.02.08 |
Other payables |
30,462 |
50,628 |
2.02.04 |
Provisons |
557 |
1,008 |
2.02.04.01 |
Provision on tax, social security, labor and civil risks |
557 |
1,008 |
2.02.04.01.02 |
Provision on social and labor risks |
31 |
467 |
2.02.04.01.04 |
Provision on civil risks |
526 |
541 |
2.03 |
Equity |
8,685,534 |
7,970,021 |
2.03.01 |
Issued capital |
5,741,284 |
5,741,284 |
2.03.02 |
Capital reserves |
468,014 |
468,014 |
2.03.04 |
Earnings reserves |
2,045,584 |
1,995,355 |
2.03.04.01 |
Legal reserve |
739,102 |
739,102 |
2.03.04.02 |
Statutory reserve |
1,306,482 |
1,248,433 |
2.03.04.08 |
Additional dividend proposed |
- |
7,820 |
2.03.05 |
Retained earnings |
684,579 |
- |
2.03.08 |
Other comprehensive income |
(253,927) |
(234,632) |
2.03.08.01 |
Accumulated comprehensive income |
(253,927) |
(234,632) |
3 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Individual Financial Statements
(In thousands of Brazilian reais – R$) |
|
|
|
| |
|
|
|
|
|
|
Code |
Description |
Current Year - Third Quarter |
YTD Current Year |
Prior Year - Third Quarter |
YTD Prior Year |
|
|
07/01/2017 to 09/30/2017 |
01/01/2017 to 09/30/2017 |
07/01/2016 to 09/30/2016 |
01/01/2016 to 09/30/2016 |
3.01 |
Revenue from sale of energy and/or services |
1 |
1 |
- |
1,713 |
3.03 |
Gross profit |
1 |
1 |
- |
1,713 |
3.04 |
Operating income (expenses) |
345,775 |
753,744 |
215,150 |
741,018 |
3.04.02 |
General and administrative expenses |
(7,672) |
(31,743) |
(16,083) |
(37,025) |
3.04.06 |
Equity interests in subsidiaries, associates and joint ventures |
353,447 |
785,487 |
231,233 |
778,043 |
3.05 |
Profit before finance income (expenses) and taxes |
345,776 |
753,745 |
215,150 |
742,731 |
3.06 |
Finance income (expenses) |
(15,656) |
(48,825) |
19,631 |
24,392 |
3.06.01 |
Finance income |
6,995 |
15,979 |
25,320 |
61,707 |
3.06.02 |
Finance expenses |
(22,651) |
(64,804) |
(5,689) |
(37,315) |
3.07 |
Profit (loss) before taxes on income |
330,120 |
704,920 |
234,781 |
767,123 |
3.08 |
Income tax and social contribution |
1,693 |
16,253 |
(3,216) |
(4,398) |
3.08.01 |
Current |
- |
- |
8,100 |
(21,062) |
3.08.02 |
Deferred |
1,693 |
16,253 |
(11,316) |
16,664 |
3.09 |
Profit (loss) from continuing operations |
331,813 |
721,173 |
231,565 |
762,725 |
3.11 |
Profit (loss) for the period |
331,813 |
721,173 |
231,565 |
762,725 |
3.99.01.01 |
Earnings per share - Common shares - Basic (R$) |
0.33 |
0.71 |
0.23 |
0.75 |
3.99.02.01 |
Earnings per share - Common shares - Diluted (R$) |
0.32 |
0.71 |
0.22 |
0.74 |
4 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Individual Financial Statements
(In thousands of Brazilian reais – R$) |
|
|
|
| |
|
|
|
|
|
|
Code |
Description |
Current Year - Third Quarter |
YTD Current Year |
Prior Year - Third Quarter |
YTD Prior Year |
07/01/2017 to 09/30/2017 |
01/01/2017 to 09/30/2017 |
07/01/2016 to 09/30/2016 |
01/01/2016 to 09/30/2016 | ||
4.01 |
Profit for the period |
331,813 |
721,173 |
231,565 |
762,725 |
4.02 |
Other comprehensive income |
- |
- |
- |
(404,363) |
4.02.01 |
Equity on comprehensive income for the period of subsidiaries |
- |
- |
- |
(404,363) |
4.03 |
Comprehensive income for the period |
331,813 |
721,173 |
231,565 |
358,362 |
5 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Individual Financial Statements
(In thousands of Brazilian reais – R$) |
|
| |
|
|
|
|
Code |
Description |
Current year 01/01/2017 to 09/30/2017 |
Prior Year 01/01/2016 to 09/30/2016 |
6.01 |
Cash flows from operating activities |
741,801 |
1,250,966 |
6.01.01 |
Cash generated from operations |
(21,149) |
15,210 |
6.01.01.01 |
Profit for the period, including income tax and social contribution |
704,919 |
767,123 |
6.01.01.02 |
Depreciation and amortization |
163 |
148 |
6.01.01.03 |
Provision for tax, civil and labor risks |
(41) |
260 |
6.01.01.04 |
Share of profit (loss) of investees |
(785,487) |
(778,043) |
6.01.01.05 |
Interest on debts, inflation adjusment and exchange rate changes |
59,297 |
25,722 |
6.01.02 |
Changes in assets and liabilities |
762,950 |
1,235,756 |
6.01.02.01 |
Dividends and interest on own capital received |
847,766 |
1,300,253 |
6.01.02.02 |
Taxes recoverable |
(5,220) |
7,170 |
6.01.02.03 |
Escrow deposits |
80 |
(64) |
6.01.02.04 |
Other operating assets |
18,633 |
7,362 |
6.01.02.05 |
Trade payables |
(3,116) |
(412) |
6.01.02.06 |
Other taxes and social contributions |
(95) |
(135) |
6.01.02.07 |
Interest on debts (paid) |
(70,850) |
(45,470) |
6.01.02.08 |
Income tax and social contribution paid |
(4) |
(27,117) |
6.01.02.09 |
Other operating liabilities |
(23,836) |
(4,771) |
6.01.02.10 |
Tax, civil and labor risks paid |
(408) |
(1,060) |
6.02 |
Net cash in investing activities |
(23,215) |
(115,617) |
6.02.01 |
Purchases of property, plant and equipment |
(141) |
(572) |
6.02.02 |
Securities |
- |
(400) |
6.02.04 |
Intragroup loans |
27,981 |
(43,624) |
6.02.06 |
Purchases of intangible assets |
(10) |
- |
6.02.07 |
Advance for future capital increase |
(51,045) |
(71,021) |
6.03 |
Net cash in financing activities |
(654,945) |
(1,097,814) |
6.03.01 |
Repayments of borrowings and debentures, net of derivatives |
(434,000) |
(888,408) |
6.03.02 |
Payments of dividend and interest on own capital |
(220,945) |
(204,695) |
6.03.04 |
Derivative instruments paid |
- |
(4,711) |
6.05 |
Increase (decrease) in cash and cash equivalents |
63,641 |
37,535 |
6.05.01 |
Cash and cash equivalents at beginning of period |
64,974 |
424,192 |
6.05.02 |
Cash and cash equivalents at end of period |
128,615 |
461,727 |
6 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Individual Financial Statements
Code |
Description |
Paid-in capital |
Capital stock options |
Earnings |
Retained earnings/ |
Other |
Equity |
5.01 |
Opening balances |
5,741,284 |
468,014 |
1,995,355 |
- |
(234,632) |
7,970,021 |
5.03 |
Adjusted opening balances |
5,741,284 |
468,014 |
1,995,355 |
- |
(234,632) |
7,970,021 |
5.04 |
Capital transactions with shareholders |
- |
- |
(7,820) |
2,160 |
- |
(5,660) |
5.04.06 |
Dividends |
- |
- |
(7,820) |
- |
- |
(7,820) |
5.04.12 |
Prescribed dividends |
- |
- |
- |
2,160 |
- |
2,160 |
5.05 |
Total comprehensive income |
- |
- |
- |
721,173 |
- |
721,173 |
5.05.01 |
Profit for the period |
- |
- |
- |
721,173 |
- |
721,173 |
5.06 |
Internal changes in equity |
- |
- |
58,049 |
(38,755) |
(19,294) |
- |
5.06.05 |
Equity on comprehensive income of subsidiaries |
- |
- |
- |
19,294 |
(19,294) |
- |
5.06.06 |
Transfers to statutory reserve in the period |
- |
- |
58,049 |
(58,049) |
- |
- |
5.07 |
Ending balances |
5,741,284 |
468,014 |
2,045,584 |
684,578 |
(253,926) |
8,685,534 |
7 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Individual Financial Statements
(In thousands of Brazilian reais – R$) |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Code |
Description |
Paid-in capital |
Capital |
Earnings |
Retained |
Other |
Equity |
5.01 |
Opening balance |
5,348,312 |
468,082 |
1,672,481 |
- |
185,320 |
7,674,195 |
5.03 |
Adjusted balance |
5,348,312 |
468,082 |
1,672,481 |
- |
185,320 |
7,674,195 |
5.04 |
Capital transactions with shareholders |
392,972 |
220 |
(392,972) |
1,756 |
- |
1,976 |
5.04.01 |
Capital increase |
392,972 |
- |
- |
- |
- |
- |
5.04.10 |
Capital increase in subsidiaries with no change in control |
- |
220 |
- |
- |
- |
220 |
5.04.12 |
Prescribed dividend |
- |
- |
- |
1,756 |
- |
1,756 |
5.05 |
Total comprehensive income |
- |
- |
- |
762,725 |
(404,362) |
358,363 |
5.05.01 |
Net income for the period |
- |
- |
- |
762,725 |
- |
762,725 |
5.05.02 |
Other comprehensive income |
- |
- |
- |
- |
(404,362) |
(404,362) |
5.06 |
Internal changes in Shareholders' equity |
- |
- |
138,858 |
(119,493) |
(19,365) |
- |
5.06.05 |
Equity on comprehensive income of subsidiaries |
- |
- |
- |
19,365 |
(19,365) |
- |
5.06.08 |
Changes in statutory reserve for the period |
- |
- |
138,858 |
(138,858) |
- |
- |
5.07 |
Ending Balances |
5,741,284 |
468,302 |
1,418,367 |
644,988 |
(238,407) |
8,034,534 |
8 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Individual Financial Statements
(In thousands of Brazilian reais – R$) |
|
| |
|
|
|
|
Code |
Description |
Current Year 01/01/2017 to |
Prior Year 01/01/2016 to |
7.01 |
Revenues |
152 |
2,459 |
7.01.01 |
Sales of goods and services |
1 |
1,888 |
7.01.02 |
Revenues related to construction of own assets |
151 |
571 |
7.02 |
Inputs purchased from third parties |
(7,315) |
(9,034) |
7.02.02 |
Materials, energy, third-party services and others |
(5,827) |
(7,269) |
7.02.04 |
Others |
(1,488) |
(1,765) |
7.03 |
Gross value added |
(7,163) |
(6,575) |
7.04 |
Retentions |
(163) |
(148) |
7.04.01 |
Depreciation, amortization and depletion |
(163) |
(148) |
7.05 |
Net value added generated |
(7,326) |
(6,723) |
7.06 |
Value Added received in transfer |
803,932 |
844,015 |
7.06.01 |
Interest in subsidiaries, associates and joint ventures |
785,487 |
778,043 |
7.06.02 |
Finance income |
18,445 |
65,972 |
7.07 |
Value Added to be distributed |
796,606 |
837,292 |
7.08 |
Distribution of value added |
796,606 |
837,292 |
7.08.01 |
Personnel |
20,442 |
24,985 |
7.08.01.01 |
Salaries and wages |
13,329 |
14,583 |
7.08.01.02 |
Benefits |
5,975 |
9,338 |
7.08.01.03 |
FGTS (Severance Pay Fund) |
1,138 |
1,064 |
7.08.02 |
Taxes, fees and contributions |
(9,895) |
12,668 |
7.08.02.01 |
Federal |
(9,918) |
12,636 |
7.08.02.02 |
State |
23 |
32 |
7.08.03 |
Lenders and lessors |
64,886 |
36,914 |
7.08.03.01 |
Interest |
64,662 |
36,877 |
7.08.03.02 |
Rentals |
224 |
37 |
7.08.04 |
Interest on own capital |
721,173 |
762,725 |
7.08.04.03 |
Retained earnings / Loss for the period |
721,173 |
762,725 |
9 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
(In thousands of Brazilian reais – R$) |
|
| |
|
|
|
|
Code |
Description |
Current Year 09/30/2017 |
Prior Year 12/31/2016 |
1 |
Total assets |
41,793,477 |
42,170,992 |
1.01 |
Current assets |
10,297,796 |
11,379,187 |
1.01.01 |
Cash and cash equivalents |
3,832,155 |
6,164,997 |
1.01.03 |
Trade receivables |
4,644,672 |
3,765,892 |
1.01.03.01 |
Consumers |
4,644,672 |
3,765,892 |
1.01.06 |
Taxes recoverable |
372,859 |
403,848 |
1.01.06.01 |
Current taxes recoverable |
372,859 |
403,848 |
1.01.06.01.01 |
Income tax and social contribution to be offset |
145,802 |
143,943 |
1.01.06.01.02 |
Other taxes recoverable |
227,057 |
259,905 |
1.01.08 |
Other current assets |
1,448,110 |
1,044,450 |
1.01.08.03 |
Others |
1,448,110 |
1,044,450 |
1.01.08.03.01 |
Other receivables |
935,255 |
797,181 |
1.01.08.03.02 |
Derivatives |
389,732 |
163,241 |
1.01.08.03.04 |
Dividends and interest on own capital |
106,237 |
73,328 |
1.01.08.03.05 |
Concession financial asset |
11,437 |
10,700 |
1.01.08.03.06 |
Sector financial asset |
5,449 |
- |
1.02 |
Noncurrent assets |
31,495,681 |
30,791,805 |
1.02.01 |
Long-term assets |
10,125,011 |
8,809,442 |
1.02.01.03 |
Trade receivables |
242,650 |
203,185 |
1.02.01.03.01 |
Consumers |
242,650 |
203,185 |
1.02.01.06 |
Deferred taxes |
979,110 |
922,858 |
1.02.01.06.02 |
Deferred tax assets |
979,110 |
922,858 |
1.02.01.08 |
Receivables from related parties |
9,158 |
47,632 |
1.02.01.08.04 |
Receivables from other related parties |
9,158 |
47,632 |
1.02.01.09 |
Other noncurrent assets |
8,894,093 |
7,635,767 |
1.02.01.09.03 |
Derivatives |
261,942 |
641,357 |
1.02.01.09.04 |
Escrow deposits |
837,526 |
550,072 |
1.02.01.09.05 |
Income tax and social contribution to be offset |
70,096 |
65,535 |
1.02.01.09.06 |
Other taxes recoverable |
162,283 |
132,751 |
1.02.01.09.07 |
Concession financial asset |
6,287,650 |
5,363,144 |
1.02.01.09.09 |
Investments at cost |
116,654 |
116,654 |
1.02.01.09.10 |
Other receivables |
809,785 |
766,254 |
1.02.01.09.11 |
Sector financial asset |
348,157 |
- |
1.02.02 |
Investments |
1,042,445 |
1,493,752 |
1.02.02.01 |
Equity interests |
1,042,445 |
1,493,752 |
1.02.02.01.01 |
Equity interests on associates |
1,042,445 |
1,493,752 |
1.02.03 |
Property, plant and equipment |
9,841,148 |
9,712,998 |
1.02.03.01 |
Property, plant and equipment - operational |
9,645,465 |
9,462,696 |
1.02.03.03 |
Property, plant and equipment - in progress |
195,683 |
250,302 |
1.02.04 |
Intangible assets |
10,487,077 |
10,775,613 |
1.02.04.01 |
Intangible assets |
10,487,077 |
10,775,613 |
10 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated Financial Statements
(In thousands of Brazilian reais – R$) |
|
| |
|
|
|
|
Code |
Description |
Current Year 09/30/2017 |
Prior Year 12/31/2016 |
2 |
Total liabilities |
41,793,477 |
42,170,992 |
2.01 |
Current liabilities |
12,307,461 |
9,018,493 |
2.01.01 |
Payroll and related charges |
171,492 |
131,707 |
2.01.01.02 |
Payroll |
171,492 |
131,707 |
2.01.01.02.01 |
Estimated payroll |
171,492 |
131,707 |
2.01.02 |
Trade payables |
4,148,059 |
2,728,131 |
2.01.02.01 |
Domestic suppliers |
4,148,059 |
2,728,131 |
2.01.03 |
Taxes payable |
698,712 |
681,544 |
2.01.03.01 |
Federal taxes payable |
294,761 |
260,607 |
2.01.03.01.01 |
Income tax and social contribution |
104,464 |
57,227 |
2.01.03.01.02 |
PIS (tax on revenue) |
27,259 |
28,759 |
2.01.03.01.03 |
COFINS (tax on revenue) |
120,026 |
126,939 |
2.01.03.01.04 |
Other federal taxes |
43,012 |
47,682 |
2.01.03.02 |
State taxes payable |
399,421 |
416,102 |
2.01.03.02.01 |
ICMS (state VAT) |
399,408 |
416,096 |
2.01.03.02.02 |
State taxes - other |
13 |
6 |
2.01.03.03 |
Municipal taxes payable |
4,530 |
4,835 |
2.01.03.03.01 |
Other municipal taxes |
4,530 |
4,835 |
2.01.04 |
Borrowings |
5,377,869 |
3,422,923 |
2.01.04.01 |
Borrowings |
3,767,294 |
1,875,648 |
2.01.04.01.01 |
In local currency |
1,603,245 |
1,260,527 |
2.01.04.01.02 |
In foreign currency |
2,164,049 |
615,121 |
2.01.04.02 |
Debentures |
1,610,575 |
1,547,275 |
2.01.04.02.01 |
Debentures |
1,610,575 |
1,547,275 |
2.01.05 |
Other liabilities |
1,911,329 |
2,054,188 |
2.01.05.02 |
Others |
1,911,329 |
2,054,188 |
2.01.05.02.01 |
Dividends and interest on own capital payable |
5,418 |
232,851 |
2.01.05.02.04 |
Derivatives |
4,464 |
6,055 |
2.01.05.02.05 |
Sector financial liability |
384,115 |
597,515 |
2.01.05.02.06 |
Use of public asset |
11,936 |
10,857 |
2.01.05.02.07 |
Other payables |
973,026 |
807,623 |
2.01.05.02.08 |
Regulatory charges |
452,279 |
366,078 |
2.01.05.02.09 |
Private pension plan |
80,091 |
33,209 |
2.02 |
Noncurrent liabilities |
18,391,056 |
22,779,831 |
2.02.01 |
Borrowings |
14,443,078 |
18,621,065 |
2.02.01.01 |
Borrowings |
8,006,258 |
11,168,393 |
2.02.01.01.01 |
In local currency |
5,349,681 |
6,293,533 |
2.02.01.01.02 |
In foreign currency |
2,656,577 |
4,874,860 |
2.02.01.02 |
Debentures |
6,436,820 |
7,452,672 |
2.02.01.02.01 |
Debentures |
6,436,820 |
7,452,672 |
2.02.02 |
Other liabilities |
1,731,960 |
2,001,356 |
2.02.02.02 |
Others |
1,731,960 |
2,001,356 |
2.02.02.02.03 |
Trade payables |
126,394 |
129,781 |
2.02.02.02.04 |
Private pension plan |
1,014,736 |
1,019,233 |
2.02.02.02.05 |
Derivatives |
117,130 |
112,207 |
2.02.02.02.06 |
Sector financial liability |
76,902 |
317,406 |
2.02.02.02.07 |
Use of public asset |
82,153 |
86,624 |
2.02.02.02.08 |
Other payables |
293,538 |
309,292 |
2.02.02.02.09 |
Federal taxes payable |
21,107 |
26,813 |
2.02.03 |
Deferred taxes |
1,267,570 |
1,324,134 |
2.02.03.01 |
Deferred income tax and social contribution |
1,267,570 |
1,324,134 |
2.02.04 |
Provisions |
948,448 |
833,276 |
2.02.04.01 |
Provision on tax, social security, labor and civil risks |
948,448 |
833,276 |
2.02.04.01.01 |
Provision on tax risks |
336,726 |
288,389 |
2.02.04.01.02 |
Provision on social security and labor risks |
208,128 |
222,001 |
2.02.04.01.04 |
Provision on civil risks |
301,123 |
236,915 |
2.02.04.01.05 |
Others |
102,471 |
85,971 |
2.03 |
Consolidated equity |
11,094,960 |
10,372,668 |
2.03.01 |
Issued capital |
5,741,284 |
5,741,284 |
2.03.02 |
Capital reserves |
468,014 |
468,015 |
2.03.04 |
Earnings reserves |
2,045,584 |
1,995,355 |
2.03.04.01 |
Legal reserve |
739,102 |
739,102 |
2.03.04.02 |
Statutory reserve |
1,306,482 |
1,248,433 |
2.03.04.08 |
Additional dividend proposed |
- |
7,820 |
2.03.05 |
Retained earnings |
684,579 |
- |
2.03.08 |
Other comprehensive income |
(253,927) |
(234,634) |
2.03.09 |
Noncontrolling interests |
2,409,426 |
2,402,648 |
11 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated Financial Statements
(In thousands of Brazilian reais – R$) |
|
|
|
| |
Code |
Description |
Current Year - Third Quarter |
YTD Current Year |
Prior Year - Third Quarter |
YTD Prior Year |
|
|
07/01/2017 to 09/30/2017 |
01/01/2017 to 09/30/2017 |
07/01/2016 to 09/30/2016 |
01/01/2016 to 09/30/2016 |
3.01 |
Revenue from sale of energy and/or services |
7,783,946 |
19,285,274 |
4,782,815 |
13,600,307 |
3.02 |
Cost of goods sold and/or services rendered |
(6,544,266) |
(15,741,409) |
(3,657,687) |
(10,403,455) |
3.02.01 |
Cost of electric energy |
(5,246,084) |
(12,205,255) |
(2,770,513) |
(7,963,080) |
3.02.02 |
Cost of operation |
(698,427) |
(2,055,025) |
(562,184) |
(1,622,816) |
3.02.03 |
Cost of services rendered to third parties |
(599,755) |
(1,481,129) |
(324,990) |
(817,559) |
3.03 |
Gross profit |
1,239,680 |
3,543,865 |
1,125,128 |
3,196,852 |
3.04 |
Operating income (expenses) |
(349,875) |
(1,188,988) |
(321,483) |
(1,012,431) |
3.04.01 |
Selling expenses |
(134,823) |
(426,479) |
(123,680) |
(387,775) |
3.04.02 |
General and administrative expenses |
(199,380) |
(716,170) |
(192,069) |
(607,198) |
3.04.05 |
Other operating expenses |
(105,703) |
(299,048) |
(74,560) |
(218,402) |
3.04.06 |
Equity interests in subsidiaries, associates and joint ventures |
90,031 |
252,709 |
68,826 |
200,944 |
3.05 |
Profit before finance income (expenses) and taxes |
889,805 |
2,354,877 |
803,645 |
2,184,421 |
3.06 |
Finance income (expenses) |
(343,400) |
(1,197,706) |
(416,893) |
(999,877) |
3.06.01 |
Finance income |
205,553 |
708,896 |
286,310 |
932,154 |
3.06.02 |
Finance expenses |
(548,953) |
(1,906,602) |
(703,203) |
(1,932,031) |
3.07 |
Profit (loss) before taxes on income |
546,405 |
1,157,171 |
386,752 |
1,184,544 |
3.08 |
Income tax and social contribution |
(156,208) |
(411,681) |
(117,480) |
(442,690) |
3.08.01 |
Current |
(184,262) |
(419,848) |
(219,493) |
(771,290) |
3.08.02 |
Deferred |
28,054 |
8,167 |
102,013 |
328,600 |
3.09 |
Profit (loss) from continuing operations |
390,197 |
745,490 |
269,272 |
741,854 |
3.11 |
Consolidated profit (loss) for the period |
390,197 |
745,490 |
269,272 |
741,854 |
3.11.01 |
Attributable to owners of the Company |
331,813 |
721,173 |
231,565 |
762,724 |
3.11.02 |
Attributable to noncontrolling interests |
58,384 |
24,317 |
37,707 |
(20,870) |
12 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated Financial Statements
(In thousands of Brazilian reais – R$) |
|
|
|
| |
|
|
|
|
|
|
Code |
Description |
Current Year - Third Quarter |
YTD Current Year |
Prior Year - Third Quarter |
YTD Prior Year |
|
|
07/01/2017to 09/30/2017 |
01/01/2017 to 09/30/2017 |
07/01/2016 to 09/30/2016 |
01/01/2016 to 09/30/2016 |
4.01 |
Consolidated profit for the period |
390,197 |
745,490 |
269,272 |
741,854 |
4.02 |
Other comprehensive income |
- |
- |
- |
(404,363) |
4.02.01 |
Actuarial gains (losses), net of tax effects |
- |
- |
- |
(404,363) |
4.03 |
Consolidated comprehensive income for the period |
390,197 |
745,490 |
269,272 |
337,491 |
4.03.01 |
Attributtable to owners of the Company |
331,813 |
721,173 |
231,565 |
358,362 |
4.03.02 |
Attributable to noncontrolling interests |
58,384 |
24,317 |
37,707 |
(20,871) |
13 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated Financial Statements
(In thousands of Brazilian reais – R$) |
|
| |
|
|
|
|
Code |
Description |
YTD Current Year 01/01/2017 to 09/30/2017 |
YTD Prior Year 01/01/2016 to 09/30/2016 |
6.01 |
Cash flows from operating activities |
2,100,706 |
2,757,232 |
6.01.01 |
Cash generated from operations |
4,039,604 |
3,751,617 |
6.01.01.01 |
Profit for the year, including income tax and social contribution |
1,157,171 |
1,184,545 |
6.01.01.02 |
Depreciation and amortization |
1,142,302 |
936,569 |
6.01.01.03 |
Provision for tax, civil and labor risks |
115,102 |
180,905 |
6.01.01.04 |
Interest on debts, inflation adjustment and exchange rate changes |
1,570,060 |
1,446,963 |
6.01.01.05 |
Pension plan expense (income) |
85,426 |
51,483 |
6.01.01.06 |
Loss on disposal of noncurrent assets |
99,689 |
32,272 |
6.01.01.07 |
Deferred taxes (PIS and COFINS) |
1,075 |
(8,933) |
6.01.01.08 |
Others |
2,603 |
(1,269) |
6.01.01.09 |
Allowance for doubtful accounts |
118,885 |
130,026 |
6.01.01.10 |
Equity interests in associates and joint ventures |
(252,709) |
(200,944) |
6.01.02 |
Changes in assets and liabilities |
(1,938,898) |
(994,385) |
6.01.02.01 |
Consumers, concessionaires and licensees |
(1,036,050) |
(507,596) |
6.01.02.02 |
Dividend and interest on shareholders’ equity received |
16,698 |
113,288 |
6.01.02.04 |
Escrow deposits |
(247,544) |
755,342 |
6.01.02.05 |
Sector financial asset |
(260,784) |
2,174,407 |
6.01.02.06 |
Dividend and interest on shareholders’ equity received |
579,508 |
86,282 |
6.01.02.07 |
Receivables - Eletrobrás |
(17,069) |
101,456 |
6.01.02.08 |
Concession financial assets (transmission companies) |
(54,625) |
(38,005) |
6.01.02.09 |
Other operating assets |
(14,356) |
125,267 |
6.01.02.10 |
Trade payables |
1,420,137 |
(1,217,552) |
6.01.02.11 |
Regulatory charges |
86,204 |
(567,176) |
6.01.02.12 |
Tax, civil and labor risks paid |
(160,845) |
(175,232) |
6.01.02.13 |
Payables - CDE |
5,847 |
(37,509) |
6.01.02.14 |
Income tax and social contribution paid |
(366,989) |
(687,539) |
6.01.02.15 |
Sector financial liability |
(627,509) |
247,857 |
6.01.02.16 |
Interest paid on debts and debentures |
(1,361,477) |
(1,229,949) |
6.01.02.17 |
Other taxes and social contributions |
(50,764) |
(65,534) |
6.01.02.18 |
Other liabilities with private pension plan |
(43,039) |
(64,990) |
6.01.02.19 |
Other operating liabilities |
193,759 |
(7,202) |
6.02 |
Net cash in investing activities |
(1,817,553) |
(1,628,855) |
6.02.01 |
Purchases of property, plant and equipment |
(610,054) |
(845,229) |
6.02.02 |
Securities, pledges and restricted deposits |
(71,162) |
(114,050) |
6.02.04 |
Purchases of intangible assets |
(1,266,817) |
(714,457) |
6.02.05 |
Sale of noncurrent assets |
94 |
- |
6.02.06 |
Capital reduction on subsidiaries |
91,599 |
- |
6.02.08 |
Loans to subsidiaries and associates |
38,787 |
44,881 |
6.03 |
Net cash in financing activities |
(2,615,995) |
(1,466,514) |
6.03.01 |
Borrowings and debentures raised |
1,545,717 |
2,290,437 |
6.03.02 |
Repayment of principal of borrowings and debentures |
(3,766,482) |
(3,766,909) |
6.03.03 |
Dividends and interest on capital paid |
(249,703) |
(228,045) |
6.03.04 |
Capital increase of noncontrolling shareholder |
13 |
247 |
6.03.05 |
Business combination payment |
(2,507) |
(18,752) |
6.03.06 |
Repayment of derivative instruments |
(143,033) |
256,508 |
6.05 |
Increase (decrease) in cash and cash equivalents |
(2,332,842) |
(338,137) |
6.05.01 |
Cash and cash equivalents at the beginning of the period |
6,164,997 |
5,682,802 |
6.05.02 |
Cash and cash equivalents at the end of the period |
3,832,155 |
5,344,665 |
14 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated Financial Statements
(In thousands of Brazilian reais – R$) |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Code |
Description |
Paid-in capital |
Capital reserves, stock options and treasury stock |
Earnings reserves |
Retained earnings/ accumulated losses |
Other comprehensive income |
Equity |
Noncontrolling interests |
Consolidated equity |
5.01 |
Opening balances |
5,741,284 |
468,014 |
1,995,355 |
- |
(234,632) |
7,970,021 |
2,402,648 |
10,372,669 |
5.03 |
Adjusted opening balances |
5,741,284 |
468,014 |
1,995,355 |
- |
(234,632) |
7,970,021 |
2,402,648 |
10,372,669 |
5.04 |
Capital transactions with shareholders |
- |
- |
(7,820) |
2,160 |
- |
(5,660) |
(17,475) |
(23,135) |
5.04.01 |
Capital increase |
- |
- |
- |
- |
- |
- |
13 |
13 |
5.04.06 |
Dividend |
- |
- |
(7,820) |
- |
- |
(7,820) |
(10,262) |
(18,082) |
5.04.12 |
Interim dividend |
- |
- |
- |
- |
- |
- |
(7,226) |
(7,226) |
5.04.13 |
Prescribed dividends |
- |
- |
- |
2,160 |
- |
2,160 |
- |
2,160 |
5.05 |
Total comprehensive income |
- |
- |
- |
721,173 |
- |
721,173 |
24,317 |
745,490 |
5.05.01 |
Profit for the period |
- |
- |
- |
721,173 |
- |
721,173 |
24,317 |
745,490 |
5.06 |
Internal changes in equity |
- |
- |
58,049 |
(38,755) |
(19,294) |
- |
(64) |
(64) |
5.06.04 |
Others changes in noncontrolling shareholders |
- |
- |
- |
- |
- |
- |
(64) |
(64) |
5.06.06 |
Transfers to statutory reserve in the period |
- |
- |
58,049 |
(58,049) |
- |
- |
- |
- |
5.06.10 |
Realization of deemed cost of property, plant and equipment |
- |
- |
- |
29,234 |
(29,234) |
- |
- |
- |
5.06.11 |
Tax effects on realization of deemed cost |
- |
- |
- |
(9,940) |
9,940 |
- |
- |
- |
5.07 |
Ending balances |
5,741,284 |
468,014 |
2,045,584 |
684,578 |
(253,926) |
8,685,534 |
2,409,426 |
11,094,960 |
15 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated Financial Statements
(In thousands of Brazilian reais – R$) |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
Code |
Description |
Paid-in capital |
Capital reserves, stock options and treasury stock |
Earnings |
Retained |
Other |
Equity |
Noncontrolling |
Consolidated |
5.01 |
Opening balances |
5,348,312 |
468,082 |
1,672,481 |
- |
185,320 |
7,674,195 |
2,455,943 |
10,130,138 |
5.03 |
Adjusted opening balances |
5,348,312 |
468,082 |
1,672,481 |
- |
185,320 |
7,674,195 |
2,455,943 |
10,130,138 |
5.04 |
Capital transactions within shareholders |
392,972 |
220 |
(392,972) |
1,756 |
- |
1,976 |
(15,883) |
(13,907) |
5.04.01 |
Capital increase |
392,972 |
- |
(392,972) |
- |
- |
- |
- |
- |
5.04.09 |
Dividend proposal approved |
- |
- |
- |
- |
- |
- |
(16,129) |
(16,129) |
5.04.10 |
Capital increase in subsidiaries with no change in control |
- |
220 |
- |
- |
- |
220 |
246 |
466 |
5.04.13 |
Prescribed dividend |
- |
- |
- |
1,756 |
- |
1,756 |
- |
1,756 |
5.05 |
Total comprehensive income |
- |
- |
- |
762,725 |
(404,363) |
358,362 |
(20,871) |
337,491 |
5.05.01 |
Net income for the period |
- |
- |
- |
762,725 |
- |
762,725 |
(20,871) |
741,854 |
5.05.02 |
Other comprehensive income |
- |
- |
- |
- |
(404,363) |
(404,363) |
- |
(404,363) |
5.06 |
Internal changes of shareholders equity |
- |
- |
138,858 |
(119,493) |
(19,365) |
- |
(53) |
(53) |
5.06.07 |
Other changes in noncontrolling shareholders |
- |
- |
- |
- |
- |
- |
(53) |
(53) |
5.06.08 |
Changes in statutory reserve in the period |
- |
- |
138,858 |
(138,858) |
- |
- |
- |
- |
5.06.10 |
Realization of deemed cost of property, plant and equipment |
- |
- |
- |
29,341 |
(29,341) |
- |
- |
- |
5.06.11 |
Tax effects on realization of deemed cost |
- |
- |
- |
(9,976) |
9,976 |
- |
- |
- |
5.07 |
Ending balances |
5,741,284 |
468,302 |
1,418,367 |
644,988 |
(238,408) |
8,034,533 |
2,419,136 |
10,453,669 |
16 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated Interim Financial Statements
(In thousands of Brazilian reais – R$) |
|
| ||
|
|
|
| |
Code |
Description |
Current Year 01/01/2017 to 09/30/2017 |
Prior Year 01/01/2016 to 09/30/2016 | |
7.01 |
Revenues |
29,513,197 |
22,942,989 | |
7.01.01 |
Sales of goods and services |
27,479,387 |
21,372,085 | |
7.01.02 |
Other revenues |
1,480,698 |
816,950 | |
7.01.02.01 |
Revenue from construction of distribution infrastructure |
1,480,698 |
816,950 | |
7.01.03 |
Revenues related to construction of own assets |
671,997 |
883,981 | |
7.01.04 |
Allowance for doubtful accounts |
(118,885) |
(130,027) | |
7.02 |
Inputs purchased from third parties |
(16,793,150) |
(11,426,738) | |
7.02.01 |
Cost of sales and services |
(13,566,945) |
(8,846,195) | |
7.02.02 |
Materials, energy, third-party services and others |
(2,700,772) |
(2,189,095) | |
7.02.04 |
Others |
(525,433) |
(391,448) | |
7.03 |
Gross value added |
12,720,047 |
11,516,251 | |
7.04 |
Retentions |
(1,145,999) |
(938,522) | |
7.04.01 |
Depreciation, amortization and depletion |
(930,473) |
(752,249) | |
7.04.02 |
Others |
(215,526) |
(186,273) | |
7.04.02.01 |
Amortization of concession intangible asset |
(215,526) |
(186,273) | |
7.05 |
Net value added generated |
11,574,048 |
10,577,729 | |
7.06 |
Value Added received in transfer |
1,010,563 |
1,212,124 | |
7.06.01 |
Interest in subsidiaries, associates and joint ventures |
252,709 |
200,945 | |
7.06.02 |
Finance income |
757,854 |
1,011,179 | |
7.07 |
Value Added to be distributed |
12,584,611 |
11,789,853 | |
7.08 |
Distribution of value added |
12,584,611 |
11,789,853 | |
7.08.01 |
Personnel |
1,016,534 |
748,895 | |
7.08.01.01 |
Salaries and wages |
603,673 |
463,889 | |
7.08.01.02 |
Benefits |
361,428 |
246,535 | |
7.08.01.03 |
FGTS (Severance Pay Fund) |
51,433 |
38,471 | |
7.08.02 |
Taxes, fees and contributions |
8,817,547 |
8,250,029 | |
7.08.02.01 |
Federal |
4,770,588 |
4,614,222 | |
7.08.02.02 |
State |
4,030,145 |
3,622,743 | |
7.08.02.03 |
Municipal |
16,814 |
13,064 | |
7.08.03 |
Lenders and lessors |
2,005,040 |
2,049,074 | |
7.08.03.01 |
Interest |
1,951,630 |
2,004,205 | |
7.08.03.02 |
Rentals |
53,410 |
44,869 | |
7.08.04 |
Interest on own capital |
745,490 |
741,855 | |
7.08.04.03 |
Retained earnings / Loss for the period |
745,490 |
741,855 | |
17 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
The comments on performance are expressed in thousands of Reais, unless otherwise stated.
Profit or loss analysis
CPFL Energia (Parent company)
This quarter, the decrease in profit was R$ 100,248 when compared with the same period of the prior year (R$ 331,813 in 2017 and R$ 231,565 in 2016) mainly due to the decrease in equity interests in subsidiaries, associates and joint ventures.
18 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated | |||||||||||||
3rd quarter |
Nine months | ||||||||||||
2017 |
2016 |
% |
2017 |
2016 |
% | ||||||||
OPERATING REVENUES |
11,073,189 |
7,376,992 |
50.1% |
28,960,086 |
22,189,035 |
30.5% | |||||||
Electricity sales to final consumers |
6,110,261 |
5,474,412 |
11.6% |
18,807,612 |
17,782,476 |
5.8% | |||||||
Electricity sales to wholesaler´s |
2,117,043 |
1,012,962 |
109.0% |
4,521,967 |
2,401,179 |
88.3% | |||||||
Revenue from construction of concession infrastructure |
602,337 |
325,100 |
85.3% |
1,480,699 |
816,950 |
81.2% | |||||||
Other operating revenues |
998,578 |
1,122,525 |
-11.0% |
3,100,524 |
2,940,670 |
5.4% | |||||||
Sector financial assets and liabilities |
1,244,970 |
(558,007) |
323.1% |
1,049,284 |
(1,752,239) |
-159.9% | |||||||
Deductions from operating revenues |
(3,289,243) |
(2,594,177) |
26.8% |
(9,674,812) |
(8,588,728) |
12.6% | |||||||
NET OPERATING REVENUE |
7,783,946 |
4,782,815 |
62.7% |
19,285,274 |
13,600,307 |
41.8% | |||||||
COST OF ELECTRIC ENERGY SERVICES |
(5,246,084) |
(2,770,513) |
89.4% |
(12,205,255) |
(7,963,080) |
53.3% | |||||||
Electricity purchased for resale |
(4,772,758) |
(2,465,707) |
93.6% |
(11,311,684) |
(6,945,260) |
62.9% | |||||||
Electricity network usage charges |
(473,326) |
(304,806) |
55.3% |
(893,571) |
(1,017,820) |
-12.2% | |||||||
OPERATING COST/EXPENSE |
(1,738,090) |
(1,277,483) |
36.1% |
(4,977,851) |
(3,653,750) |
36.2% | |||||||
Personnel |
(329,180) |
(261,189) |
26.0% |
(998,342) |
(773,356) |
29.1% | |||||||
Employee pension plans |
(28,483) |
(23,658) |
20.4% |
(85,426) |
(51,483) |
65.9% | |||||||
Materials |
(69,451) |
(64,765) |
7.2% |
(182,008) |
(143,821) |
26.6% | |||||||
Outside Services |
(173,821) |
(156,531) |
11.0% |
(548,210) |
(463,320) |
18.3% | |||||||
Depreciation and Amortization |
(313,329) |
(254,202) |
23.3% |
(926,776) |
(750,297) |
23.5% | |||||||
Merged Goodwill Amortization |
(71,294) |
(62,365) |
14.3% |
(215,526) |
(186,272) |
15.7% | |||||||
Costs related to infrastructure construction |
(598,698) |
(324,154) |
84.7% |
(1,478,990) |
(815,681) |
81.3% | |||||||
Other |
(153,834) |
(130,619) |
17.8% |
(542,572) |
(469,521) |
15.6% | |||||||
INCOME FROM ELECTRIC ENERGY SERVICE |
799,773 |
734,819 |
8.8% |
2,102,168 |
1,983,477 |
6.0% | |||||||
FINANCIAL INCOME (EXPENSE) |
(343,400) |
(416,893) |
-17.6% |
(1,197,706) |
(999,877) |
19.8% | |||||||
Income |
205,553 |
286,310 |
-28.2% |
708,896 |
932,154 |
-24.0% | |||||||
Expense |
(548,953) |
(703,203) |
-21.9% |
(1,906,602) |
(1,932,030) |
-1.3% | |||||||
Equity in subsidiaries |
90,031 |
68,826 |
30.8% |
252,709 |
200,944 |
25.8% | |||||||
INCOME BEFORE TAXES |
546,404 |
386,752 |
41.3% |
1,157,171 |
1,184,545 |
-2.3% | |||||||
Social Contribution |
(44,521) |
(35,448) |
25.6% |
(113,385) |
(125,116) |
-9.4% | |||||||
Income Tax |
(111,686) |
(82,031) |
36.1% |
(298,296) |
(317,575) |
-6.1% | |||||||
NET INCOME |
390,197 |
269,272 |
44.9% |
745,490 |
741,854 |
0.5% | |||||||
Net income attributable to the shareholders of the company |
331,813 |
231,565 |
43.3% |
721,173 |
762,725 |
-5.4% | |||||||
Net income attributable to the non controlling interests |
58,385 |
37,707 |
54.8% |
24,319 |
(20,871) |
-216.5% | |||||||
EBITDA |
1,274,571 |
1,120,357 |
13.8% |
3,497,613 |
3,121,425 |
12.1% | |||||||
Net Income for the Period and Adjusted EBITDA Reconciliation |
|
|
|
|
|
|
|
|
|
||||
NET INCOME FOR THE PERIOD |
390,197 |
269,272 |
745,490 |
741,854 |
|
||||||||
Depreciation and Amortization |
384,622 |
316,567 |
1,142,302 |
936,569 |
|
||||||||
|
145 |
145 |
435 |
435 |
|
||||||||
Financial Income (Expense) |
343,400 |
416,893 |
1,197,706 |
999,877 |
|
||||||||
Social Contribution |
44,521 |
35,448 |
113,385 |
125,116 |
|
||||||||
Income Tax |
111,686 |
82,031 |
298,296 |
317,575 |
|
||||||||
Adjusted EBITDA |
1,274,571 |
1,120,357 |
3,497,613 |
3,121,425 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(*) For purposes of presentation of the comments on performance, the reclassification of revenue from network usage charge - TUSD to captive consumer was not made.
19 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Gross operating revenue for the 3rd quarter of 2017 was R$ 11,073,189, an increase of 50.1% (R$ 3,696,197) compared with the same period of the prior year.
The main factors of this variation were:
· Increase of 11.6% (R$ 635,849) in the electricity sales to final consumer, justified by the beginning of consolidation of RGE Sul (R$ 864,251) and increase of 4.9% in the volume of energy sold (R$ 266,425), offset by the decrease in average tariffs of 8.6% (R$ 494,826), mainly from the decrease in revenue due to the consolidated negative effects of the Annual Tariff Adjustment (RTA);
· Increase of 109% (R$ 1,104,081) in the electricity sales to wholesalers, mainly due to:
o Increase of R$ 849,091 in the sales of energy in the spot market in CCEE (Electric Energy Trading Chamber), basically due to an increase in the average price (R$ 762,177) resulting from an increase in the price of differences settlement (“PLD”) in the quarter, and the beginning of consolidation of RGE Sul (R$ 147,583), partially offset by a decrease in the volume sold of 31.5% (R$ 60,609);
o Increase of 36.9% (R$ 254,989) in other concessionaires and licensees, basically due to the increase in the average price of 64.7% (R$ 365,972), partially offset by a decrease in the amount sold of 17.2% (R$ 117,298);
· Decrease of 323.1% (R$ 1,802,977) in sector financial liability (an expense of R$ 558,007 in 2016 for an income of R$ 1,244,970 in 2017), due to: (i) realization of the recorded liability (R$ 338,572), mainly related to costs of electric energy and CDE, and the realization of assets in the third quarter of 2016 (R$ 339,476), and (ii) recording of asset (R$ 906,397), mainly related to costs of electric energy, associated to the recognition of liabilities in the third quarter of 2016 (R$ 218,532).
· Increase of 11% (R$ 123,947) in other operating revenues, basically due to the decrease in (i) CDE contribution – injunctions and others (R$ 156,992), (ii) TUSD of free consumers (R$ 62,882) and (iii) adjustment of the concession financial asset (R$ 38,244) due to the lower IPCA in the third quarter of 2017, partially offset by the beginning of consolidation of RGE Sul (R$ 129,955).
Ø Volume of energy sold by distributors
In the 3rd quarter of 2017, the amount of energy billed to captive consumers in the period, including other licensees and excluding the acquisition of RGE Sul, presented a decrease of 3.0% when compared with the same quarter of the prior year.
The comments below regarding the performance by consumption class do not consider the acquisition of RGE Sul:
· The consumption of the residential class represents 42.3% of the total market supplied by distributors. Despite the positive performance of income mass, which, in the accumulated of 12 months (until July 2017) recorded an increase of 2.7%.
· The commercial class, which represents 18.8% of the total market supplied by distributors, presented a drop of 9.6% in the 3rd quarter of 2017 in relation to the same period of the prior year. The result reflects the client’s migration to the free market.
· The industrial class, which represents 15.1% of the total market supplied by distributors, reported a fall of 19.6% in the 3rd quarter of 2017 in relation to the same period of the prior year. Such performance is a direct consequence of the client’s migration to the free market.
· The other consumption classes (rural, public administration, public utilities and licensees) participate with 23.8% of the total market supplied by distributors. Such classes presented a growth of 3.3% in the 3rd quarter of 2017 in relation to the same period of the prior year. This performance reflects the growth in consumption of classes: (i) Rural, due to a rainfall period below the average level and lower than the 3rd quarter of 2016; and (ii) Public Services.
· Regarding the amount of energy sold and transported in the concession area, which impacts both the billed supply (captive market) and the TUSD collection (free market), there was an increase of 3.2% when compared with the same period of the prior year. The variation by class presented an increase in all consumption classes: 4.4% in the residential class, 1.0% in the commercial class, 2.8% in the industrial class and 4.4% in other classes.
20 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
|
Ø |
Tariffs |
In the 3rd quarter of 2017, energy supply tariffs decreased on average 8.6%. This occurred mainly due to the effects of the annual tariff adjustments and periodic tariff review, as follows:
2017 |
2016 | |||||||||
Distributor |
Month |
RTA |
Average effect perceived by consumers (a) |
RTA / RTP |
Average effect perceived by consumers (a) | |||||
CPFL Paulista |
April |
-0.80% |
-10.50% |
9.89% |
7.55% | |||||
CPFL Piratininga |
October (b) |
7.69% |
17.28% |
-12.54% |
-24.21% | |||||
RGE |
June |
3.57% |
5.00% |
-1.48% |
-7.51% | |||||
RGE Sul |
April |
-0.20% |
-6.43% |
3.94% |
-0.34% | |||||
CPFL Santa Cruz |
March |
-2.44% |
-8.42% |
22.51% |
7.15% | |||||
CPFL Leste Paulista |
March |
-1.20% |
-4.15% |
21.04% |
13.32% | |||||
CPFL Jaguari |
March |
-0.74% |
-2.56% |
29.46% |
13.25% | |||||
CPFL Sul Paulista |
March |
-3.12% |
-10.73% |
24.35% |
12.82% | |||||
CPFL Mococa |
March |
-0.95% |
-3.28% |
16.57% |
9.02% |
|
(a) |
represents the average effect perceived by the consumer, as a result of the elimination from the tariff base of financial components that had been added in the prior tariff adjustment (information not reviewed by the independent auditors).
|
(b) |
as described in the note 34.1 to the interim financial statements, there was a RTA for the subsidiary CPFL Piratininga in October 2017. |
Deductions from operating revenue
Deductions from operating revenue in the 3rd quarter of 2017 were R$ 3,289,243, an increase of 26.8% (R$ 695,065) in relation to the same quarter of 2016, which mainly occurred due to:
· |
Beginning of consolidation of RGE Sul (R$ 487,505); |
· |
Increase of 30.7% (R$ 191,955) on PIS and COFINS, mainly due to the increase in the basis of calculation of these taxes (energy supply). |
· |
Increase of 9.5% (R$ 81,526) in sector charges, basically due to an increase in the recognition of effects of tariff flags and others (R$ 176,066), partially offset by a decrease in Energy Development Account – CDE (R$ 114,493); and |
· |
Decrease of 6.1% (R$ 67,217) on ICMS, mainly due to the decrease in billed supply. |
Cost of electric energy
The cost of electric energy this quarter amounted to R$ 5,246,084, an increase of 89.4% (R$ 2,275,571) in relation to the same period of the prior year, mainly justified by:
· |
Increase of 93.6% (R$ 2,307,051) in electric energy purchased for resale, due to: | |
|
o |
the beginning of consolidation of RGE Sul (R$ 607,366) |
|
o |
increase of 6.4% (R$ 157,587) in the amount of energy purchased; |
|
o |
increase of 58.8% (R$ 1,542,098) in average price due to the increase in the PLD. |
· |
Increase of 55.3% (R$ 168,520) in transmission and distribution system usage charges, basically due to (i) the beginning of consolidation of RGE Sul (R$ 86,305), and (ii) an increase in the Itaipu basic networ (R$ 205,034) and transmission charges (R$ 41,932), partially offset by a decrease in the system service charge – ESS and the reserve energy charge – EER (R$ 153,108). |
21 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Operating costs and expenses
Disregarding the cost of construction of the concession infrastructure, Operating Costs and Expenses this quarter amounted to R$ 1,139,392, an increase of 19.5% (R$ 186,063) compared with the same period of the prior year. This variation is mainly due to:
· |
Personnel: increase of 26% (R$ 67,991), mainly due to (i) beginning of consolidation of RGE Sul (R$ 35,978) and (ii) effects of the collective labor agreement and increase in the number of employees;
|
· |
Private pension plan: increase of 20.4% (R$ 4,825) due to the recognition of the impact of the actuarial report for 2017;
|
· |
Materials: increase of 7.2% (R$ 4,686), basically due to the beginning of consolidation of RGE Sul (R$ 7,637).
|
· |
Third-party services: increase of 11% (R$ 17,290), mainly due to the beginning of consolidation of RGE Sul (R$ 30,921), partially offset by a decrease in (i) machinery and equipment maintenance (R$ 6,618) and (ii) services related to transmission (R$ 5,801);
|
· |
Depreciation and amortization: increase of 23.3% (R$ 59,126), basically due to (i) beginning of consolidation of RGE Sul (R$ 26,929), (ii) increase of R$ 18,636 in the subsidiary CPFL Renováveis mainly due to the beginning of operations of renewable generation facilities in the period and (iii) increase in other distribution subsidiaries basically due to an increase in intangible assets of the distribution infrastructure (R$ 12,622);
|
· |
Amortization of the concession intangible asset: increase of 14.3% (R$ 8,929) mainly due to the beginning of consolidation of RGE Sul (R$ 8,149);
|
· |
Other expenses: increase of 17.8% (R$ 23,215), mainly due to (i) beginning of consolidation of RGE Sul (R$ 3,842), (ii) judicial and legal expenses and indemnities (R$ 14,382) and losses on disposal, retirement and other non-current assets (R$ 14,882), partially offset by a decrease in the allowance for doubtful accounts (R$ 8,901). |
Finance income (expenses)
Net finance result this quarter presented an expense of R$ 343,400, compared with R$ 416,893 in the same period of 2016, a deacrease of 17.6% (R$ 73,493). Such variation is basically due to:
· |
Decrease in finance income of 28.2% (R$ 80,758), basically due to the decrease in income from financial investments (R$ 95,747), partially offset by the beginning of consolidation of RGE Sul (R$ 15,831);
|
· |
Decrease in finance expenses of 21.9% (R$ 154,250), mainly due to interest on debts and adjustment for inflation and exchange rate changes (R$ 222,943), partially offset by the beginning of consolidation of RGE Sul (R$ 52,945). |
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(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Share of profit (loss) of investees
The variation in share of profit (loss) of investees refers to the effect of the share of profit (loss) of joint ventures, as follows:
3rd Quarter | ||||
|
|
2017 |
|
2016 |
Epasa |
|
20,924 |
|
10,942 |
Baesa |
|
8,638 |
|
172 |
Enercan |
|
26,328 |
|
31,025 |
Chapecoense |
|
34,286 |
|
26,833 |
Amortization of value-added of assets |
|
(145) |
(145) | |
Total |
|
90,031 |
|
68,826 |
|
|
|
|
|
· EPASA: increase of R$ 9,982 mainly due to the increase in the volume of energy generated (456GWh in the 3rd quarter of 2017 and 120 GWh in the 3rd quarter of 2016).
· Chapecoense: increase of R$ 7,453 mainly due to the reduction of finance expenses of R$ 7,373, related to an adjustment in the Use of Public Asset, caused by a decrease in the adjustment indexes.
Social Contribution and Income Tax
Expenses on taxes on profit in the 3rd quarter of 2017 were R$ 156,207, an increase of 33% (R$ 38,727) in relation to the one recorded in the same quarter of 2016, which reflects mainly the effects of variation in profit before taxes.
Profit for the Period and EBITDA
Due to the factors described above, the profit for this quarter was R$ 390,197, 44.9% (R$ 120,924) higher than the one of the same period of 2016.
EBITDA (Earnings before depreciation, amortization, finance income and expenses, and income tax and social contribution) for the 3rd quarter of 2017 was R$ 1,274,571, 13.8% (R$ 154,214) higher than the one determined in the same period of 2016.
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(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
COMMENT ON THE PERFORMANCE OF SUBSIDIARIES/ASSOCIATES
Subsidiary/Associate: Companhia Paulista de Força e Luz - CPFL
The subsidiary Companhia Paulista de Força e Luz - CPFL is a publicly-held corporation, and the comment on its performance is included in its Quarterly Financial Information - ITR as of September 30, 2017 filed with the Brazilian Securities and Exchange Commission (CVM).
Subsidiary/Associate: CPFL Geração de Energia S.A.
The subsidiary CPFL Geração de Energia S/A is a publicly-held corporation, and the comments on its individual and consolidated performance is included in its Quarterly Financial Information – ITR as of September 30, 2017 filed with the Brazilian Securities and Exchange Commission (CVM).
Subsidiary/Associate: Companhia Piratininga de Força e Luz
The subsidiary Companhia Piratininga de Força e Luz is a publicly-held corporation, and the comments on its performance is included in its Quarterly Financial Information – ITR as of September 30, 2017 filed with the Brazilian Securities and Exchange Commission (CVM).
Subsidiary/Associate: Rio Grande Energia S.A.
The subsidiary Rio Grande Energia S.A. is a publicly-held corporation, and the comment on its performance is included in its Quarterly Financial Information – ITR as of September 30, 2017 filed with the Brazilian Securities and Exchange Commission (CVM).
Subsidiary/Associate: RGE Sul Distribuidora de Energia S.A.
The subsidiary RGE Sul Distribuidora de Energia S.A is a publicly-held corporation, and the comment on its performance is included in its Quarterly Financial Information – ITR as of September 30, 2017 filed with the Brazilian Securities and Exchange Commission (CVM).
24 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Subsidiary: CPFL Comercialização Brasil S.A.
Consolidated | ||||||||||||
3rd quarter |
Nine months | |||||||||||
2017 |
2016 |
% |
2017 |
2016 |
% | |||||||
OPERATING REVENUES |
1,109,355 |
634,500 |
74.8% |
2,676,102 |
1,672,000 |
60.1% | ||||||
Electricity sales to final consumers |
497,008 |
395,262 |
25.7% |
1,397,568 |
1,049,632 |
33.1% | ||||||
Electricity sales to wholesaler´s |
612,346 |
216,733 |
182.5% |
1,278,528 |
573,380 |
123.0% | ||||||
Other operating revenues |
2 |
22,505 |
-100.0% |
7 |
48,988 |
-100.0% | ||||||
Deductions from operating revenues |
(124,505) |
(74,596) |
66.9% |
(309,401) |
(196,039) |
57.8% | ||||||
NET OPERATING REVENUE |
984,851 |
559,904 |
75.9% |
2,366,701 |
1,475,960 |
60.3% | ||||||
COST OF ELECTRIC ENERGY SERVICES |
(932,845) |
(494,474) |
88.7% |
(2,219,912) |
(1,343,612) |
65.2% | ||||||
Electricity purchased for resale |
(932,833) |
(494,474) |
88.7% |
(2,219,862) |
(1,343,614) |
65.2% | ||||||
Electricity network usage charges |
(12) |
- |
0.0% |
(50) |
1 |
-3716.0% | ||||||
OPERATING COST/EXPENSE |
(11,687) |
(11,721) |
-0.3% |
(34,729) |
(33,178) |
4.7% | ||||||
Personnel |
(7,615) |
(6,240) |
22.0% |
(22,902) |
(18,992) |
20.6% | ||||||
Materials |
(41) |
(56) |
-25.9% |
(128) |
(181) |
-29.4% | ||||||
Outside Services |
(2,074) |
(1,969) |
5.3% |
(5,628) |
(5,173) |
8.8% | ||||||
Depreciation and Amortization |
(712) |
(951) |
-25.1% |
(2,408) |
(2,879) |
-16.4% | ||||||
Other |
(1,245) |
(2,506) |
-50.3% |
(3,662) |
(5,953) |
-38.5% | ||||||
INCOME FROM ELECTRIC ENERGY SERVICE |
40,318 |
53,709 |
-24.9% |
112,061 |
99,170 |
13.0% | ||||||
FINANCIAL INCOME (EXPENSE) |
(4,179) |
4,607 |
-190.7% |
(24,908) |
8,084 |
-408.1% | ||||||
Income |
5,495 |
8,959 |
-38.7% |
17,865 |
26,783 |
-33.3% | ||||||
Expense |
(9,674) |
(4,352) |
122.3% |
(42,773) |
(18,699) |
128.7% | ||||||
Equity in subsidiaries |
(2,466) |
- |
0.0% |
(9,249) |
- |
0.0% | ||||||
INCOME BEFORE TAXES |
33,673 |
58,316 |
-42.3% |
77,904 |
107,254 |
-27.4% | ||||||
Social Contribution |
(3,034) |
(5,292) |
-42.7% |
(7,691) |
(9,547) |
-19.4% | ||||||
Income Tax |
(8,429) |
(14,585) |
-42.2% |
(21,360) |
(26,351) |
-18.9% | ||||||
NET INCOME |
22,209 |
38,439 |
-42.2% |
48,853 |
71,355 |
-31.5% | ||||||
EBITDA |
38,563 |
54,660 |
-29.4% |
105,219 |
102,049 |
3.1% | ||||||
Net Income for the Period and Adjusted EBITDA Reconciliation (*) |
|
|
|
|
|
|
|
|
|
|||
NET INCOME FOR THE PERIOD |
22,209 |
38,439 |
48,853 |
71,355 |
|
|||||||
Depreciation and Amortization |
712 |
951 |
2,408 |
2,879 |
|
|||||||
Financial Income (Expense) |
4,179 |
(4,607) |
24,908 |
(8,084) |
|
|||||||
Social Contribution |
3,034 |
5,292 |
7,691 |
9,547 |
|
|||||||
Income Tax |
8,429 |
14,585 |
21,360 |
26,351 |
|
|||||||
Adjusted EBITDA |
38,563 |
54,660 |
105,219 |
102,049 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Information not reviewed by the independent auditors |
Gross Operating Revenue
The gross operating revenue of the 3rd quarter of 2017 was R$1,109,355, an increase of R$474,855 (74.8%) in relation to the same quarter of 2016, mainly explained by the (i) increase in the amount of energy sold to free consumers and concessionaires (1,849 GWh – R$ 329,611); (ii) gain in operations of CCEE due to an increase in the amount of energy traded (280.1 GWh – R$ 117,946) and increase in average price of PLD (R$ 45,101); partially offset by (iii) contractual indemnities by postponement of energy (R$ 22,503).
Cost of Electric Energy
Cost of electric energy of the 3rd quarter of 2017 was R$ 932,845, an increase of R$ 438,371 (88.7%) in relation to the same quarter of 2016, basically explained by bilateral contracts: increase in volume purchased (2,108 GWh - R$ 352,359) and in average price of 21.5% (R$99,417).
Finance Income (expenses)
The finance result determined in the 3rd quarter of 2017 was a finance cost of R$ 4,179, an increase of R$ 8,786 in relation to the same quarter of 2016, mainly explained by the 3rd issue of debentures in the 4th quarter of 2016 (R$ 11,313), partially offset by the gain on the fair value adjustment of derivatives and debts (R$ 4,402).
The share of profit of investees for the 3rd quarter was negative by R$ 6,534, due to the equity interest in the subsidiary CPFL Jaguariúna.
25 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Profit for the Period and EBITDA
The result determined in the 3rd quarter of 2017 was a profit of R$ 18,142, a decrease of R$ 20,297 (52.8%) when compared with the same quarter of 2016.
EBITDA (Earnings before finance result, income tax and social contribution and depreciation and amortization) for the 3rd quarter of 2017 was R$ 34,496, a decrease of R$ 20,164 (36.9%) when compared with the same quarter of 2016, which was R$ 54,660 (information not reviewed by the Independent Auditors).
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(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
| ||||||||
CPFL Energia S.A. | ||||||||
Statements of financial position at September 30, 2017 and December 31, 2016 | ||||||||
(In thousands of Brazilian reais - R$) | ||||||||
Note |
Parent company |
Consolidated | ||||||
ASSETS |
September 30, 2017 |
December 31, 2016 |
September 30, 2017 |
December 31, 2016 | ||||
Current assets |
||||||||
Cash and cash equivalents |
5 |
128,616 |
64,973 |
3,832,155 |
6,164,997 | |||
Consumers, concessionaires and licensees |
6 |
- |
- |
4,644,672 |
3,765,893 | |||
Dividends and interest on capital |
12 |
223,052 |
642,978 |
106,237 |
73,328 | |||
Income tax and social contribution to be offset |
7 |
86,293 |
53,246 |
145,802 |
143,943 | |||
Other taxes recoverable |
7 |
4,532 |
29,589 |
227,057 |
259,905 | |||
Derivatives |
32 |
- |
- |
389,732 |
163,241 | |||
Sector financial asset |
8 |
- |
- |
5,449 |
- | |||
Concession financial asset |
10 |
- |
- |
11,437 |
10,700 | |||
Other receivables |
11 |
311 |
229 |
935,255 |
797,181 | |||
Total current assets |
442,803 |
791,016 |
10,297,796 |
11,379,187 | ||||
Noncurrent assets |
||||||||
Consumers, concessionaires and licensees |
6 |
- |
- |
242,650 |
203,185 | |||
Intragroup loans |
30 |
25,619 |
52,582 |
9,157 |
47,631 | |||
Escrow deposits |
21 |
649 |
710 |
837,526 |
550,072 | |||
Income tax and social contribution to be offset |
7 |
- |
- |
70,096 |
65,535 | |||
Other taxes recoverable |
7 |
- |
- |
162,283 |
132,751 | |||
Sector financial assets |
8 |
- |
- |
348,157 |
- | |||
Derivatives |
32 |
- |
- |
261,942 |
641,357 | |||
Deferred tax assets |
9 |
187,326 |
171,073 |
979,110 |
922,858 | |||
Concession financial asset |
10 |
- |
- |
6,287,650 |
5,363,144 | |||
Investments at cost |
- |
- |
116,654 |
116,654 | ||||
Other receivables |
11 |
7,546 |
26,261 |
809,785 |
766,253 | |||
Investments |
12 |
8,255,110 |
7,866,100 |
1,042,445 |
1,493,753 | |||
Property, plant and equipment |
13 |
1,179 |
1,199 |
9,841,148 |
9,712,998 | |||
Intangible assets |
14 |
32 |
24 |
10,487,077 |
10,775,613 | |||
Total noncurrent assets |
8,477,461 |
8,117,948 |
31,495,681 |
30,791,805 | ||||
Total assets |
8,920,264 |
8,908,964 |
41,793,477 |
42,170,992 |
The accompanying notes are an integral part of these interim financial statements.
27 of 92
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
| |||||||||
CPFL Energia S.A. | |||||||||
Statements of financial position at September 30, 2017 and December 31, 2016 | |||||||||
(In thousands of Brazilian reais - R$) | |||||||||
Note |
Parent company |
Consolidated | |||||||
LIABILITIES AND EQUITY |
September 30, 2017 |
December 31, 2016 |
September 30, 2017 |
December 31, 2016 | |||||
Current liabilities |
|||||||||
Trade payables |
15 |
644 |
3,760 |
4,148,059 |
2,728,130 | ||||
Borrowings |
16 |
- |
- |
3,767,294 |
1,875,648 | ||||
Debentures |
17 |
66 |
15,334 |
1,610,575 |
1,547,275 | ||||
Private pension plan |
18 |
- |
- |
80,091 |
33,209 | ||||
Regulatory charges |
19 |
- |
- |
452,279 |
366,078 | ||||
Income tax and social contribution payable |
- |
- |
104,464 |
57,227 | |||||
Other taxes, fees and contributions |
20 |
359 |
454 |
594,249 |
624,317 | ||||
Dividends |
3,345 |
218,630 |
5,418 |
232,851 | |||||
Estimated payroll |
- |
- |
171,492 |
131,707 | |||||
Derivatives |
32 |
- |
- |
4,464 |
6,055 | ||||
Sector financial liability |
8 |
- |
- |
384,115 |
597,515 | ||||
Use of public asset |
- |
- |
11,936 |
10,857 | |||||
Other payables |
22 |
16,009 |
17,577 |
973,025 |
807,623 | ||||
Total current liabilities |
20,423 |
255,755 |
12,307,461 |
9,018,492 | |||||
Noncurrent liabilities |
|||||||||
Trade payables |
15 |
- |
- |
126,394 |
129,781 | ||||
Borrowings |
16 |
- |
- |
8,006,258 |
11,168,394 | ||||
Debentures |
17 |
183,288 |
612,251 |
6,436,820 |
7,452,672 | ||||
Private pension plan |
18 |
- |
- |
1,014,736 |
1,019,233 | ||||
Other taxes, fees and contributions |
20 |
- |
- |
21,107 |
26,814 | ||||
Deferred tax liabilities |
9 |
- |
- |
1,267,570 |
1,324,134 | ||||
Provision for tax, civil and labor risks |
21 |
557 |
1,008 |
948,448 |
833,276 | ||||
Derivatives |
32 |
- |
- |
117,130 |
112,207 | ||||
Sector financial liability |
8 |
- |
- |
76,902 |
317,406 | ||||
Use of public asset |
- |
- |
82,153 |
86,624 | |||||
Allowance for investment losses |
12 |
2,100 |
19,302 |
- |
- | ||||
Other payables |
22 |
28,362 |
50,628 |
293,538 |
309,292 | ||||
Total noncurrent liabilities |
214,307 |
683,189 |
18,391,056 |
22,779,832 | |||||
Equity |
23 |
||||||||
Issued capital |
5,741,284 |
5,741,284 |
5,741,284 |
5,741,284 | |||||
Capital reserves |
468,014 |
468,014 |
468,014 |
468,014 | |||||
Legal reserve |
739,102 |
739,102 |
739,102 |
739,102 | |||||
Statutory reserve - concession financial asset |
760,976 |
702,928 |
760,976 |
702,928 | |||||
Statutory reserve - working capital improvement |
545,505 |
545,505 |
545,505 |
545,505 | |||||
Additional dividend proposed |
- |
7,820 |
- |
7,820 | |||||
Accumulated comprehensive income |
(253,927) |
(234,633) |
(253,927) |
(234,633) | |||||
Retained earnings |
684,579 |
- |
684,579 |
- | |||||
8,685,534 |
7,970,020 |
8,685,534 |
7,970,021 | ||||||
Equity attributable to noncontrolling interests |
- |
- |
2,409,425 |
2,402,648 | |||||
Total equity |
8,685,534 |
7,970,020 |
11,094,960 |
10,372,668 | |||||
Total liabilities and equity |
8,920,264 |
8,908,964 |
41,793,477 |
42,170,992 |
The accompanying notes are an integral part of these interim financial statements.
28 of 92
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
| ||||||||||||||||
CPFL Energia S.A. | ||||||||||||||||
Statements of profit or loss for the periods ended September 30, 2017 and 2016 | ||||||||||||||||
(In thousands of Brazilian reais, except earnings per share) | ||||||||||||||||
Note |
Parent company |
Consolidated | ||||||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||||||
3rd Quarter |
|
9 months |
|
3rd Quarter |
|
9 months |
3rd Quarter |
|
9 months |
|
3rd Quarter (Restated*) |
|
9 months (Restated*) | |||
Net operating revenue |
25 |
1 |
1 |
- |
1,713 |
7,783,946 |
19,285,274 |
4,782,815 |
13,600,307 | |||||||
Cost of electric energy services |
||||||||||||||||
Cost of electric energy |
26 |
- |
- |
- |
- |
(5,246,084) |
(12,205,255) |
(2,770,513) |
(7,963,080) | |||||||
Cost of operation |
27 |
- |
- |
- |
- |
(698,427) |
(2,055,025) |
(562,184) |
(1,622,816) | |||||||
Cost of services rendered to third parties |
27 |
- |
- |
- |
- |
(599,755) |
(1,481,128) |
(324,990) |
(817,558) | |||||||
|
|
|
|
|
|
|
| |||||||||
Gross profit |
1 |
1 |
- |
1,713 |
1,239,680 |
3,543,865 |
1,125,128 |
3,196,852 | ||||||||
Operating expenses |
27 |
|||||||||||||||
Selling expenses |
- |
- |
- |
- |
(134,824) |
(426,479) |
(123,680) |
(387,775) | ||||||||
General and administrative expenses |
(7,672) |
(31,743) |
(16,083) |
(37,025) |
(199,380) |
(716,170) |
(192,069) |
(607,198) | ||||||||
Other operating expenses |
- |
- |
- |
- |
(105,702) |
(299,048) |
(74,560) |
(218,402) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from electric energy services |
(7,671) |
(31,743) |
(16,083) |
(35,312) |
799,773 |
2,102,168 |
734,819 |
1,983,477 | ||||||||
Equity interests in subsidiaries, associates and joint ventures |
12 |
353,447 |
785,487 |
231,233 |
778,043 |
90,031 |
252,709 |
68,826 |
200,944 | |||||||
Finance income (expenses) |
28 |
|||||||||||||||
Finance income |
6,995 |
15,979 |
25,321 |
61,706 |
205,553 |
708,896 |
286,310 |
932,154 | ||||||||
Finance expenses |
(22,651) |
(64,804) |
(5,689) |
(37,315) |
(548,953) |
(1,906,602) |
(703,203) |
(1,932,030) | ||||||||
(15,656) |
(48,825) |
19,631 |
24,391 |
(343,400) |
(1,197,706) |
(416,893) |
(999,877) | |||||||||
Profit before taxes |
330,120 |
704,919 |
234,781 |
767,123 |
546,404 |
1,157,171 |
386,752 |
1,184,545 | ||||||||
Social contribution |
9 |
737 |
5,818 |
(198) |
120 |
(44,521) |
(113,385) |
(35,448) |
(125,116) | |||||||
Income tax |
9 |
956 |
10,435 |
(3,017) |
(4,517) |
(111,686) |
(298,296) |
(82,031) |
(317,575) | |||||||
1,693 |
16,253 |
(3,216) |
(4,397) |
(156,207) |
(411,680) |
(117,480) |
(442,691) | |||||||||
Profit for the period |
331,813 |
721,173 |
231,565 |
762,725 |
390,197 |
745,490 |
269,272 |
741,854 | ||||||||
Profit for the period attributable to owners of the Company |
- |
331,813 |
721,173 |
231,565 |
762,725 | |||||||||||
Profit (loss) for the period attributable to noncontrolling interests |
- |
58,385 |
24,319 |
37,707 |
(20,871) | |||||||||||
Basic earnings per share attributable to owners of the Company (R$) |
24 |
0.33 |
0.71 |
0.23 |
0.75 |
0.33 |
0.71 |
0.23 |
0.75 | |||||||
Diluted earnings per share attributable to owners of the Company (R$) |
24 |
0.32 |
0.71 |
0.22 |
0.74 |
0.32 |
0.71 |
0.22 |
0.74 |
(*) Comprises the effects of note 2.8
29 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
| ||||||||
CPFL Energia S.A. | ||||||||
Statements of comprehensive income for the periods ended September 30, 2017 and 2016 | ||||||||
(In thousands of Brazilian reais - R$) | ||||||||
Parent company | ||||||||
2017 |
2016 | |||||||
3rd Quarter |
|
9 months |
|
3rd Quarter |
|
9 months | ||
Profit for the period |
331,813 |
721,173 |
231,565 |
762,725 | ||||
Other comprehensive income |
||||||||
Items that will not be reclassified subsequently to profit or loss |
||||||||
Comprehensive income for the period of subsidiaries |
- |
- |
- |
(404,363) | ||||
Total comprehensive income for the period - individual |
331,813 |
721,173 |
231,565 |
358,362 | ||||
Consolidated | ||||||||
2017 |
2016 | |||||||
3rd Quarter |
|
9 months |
|
3rd Quarter |
|
9 months | ||
Profit for the period |
390,197 |
745,490 |
269,272 |
741,854 | ||||
Other comprehensive income |
||||||||
Items that will not be reclassified subsequently to profit or loss |
||||||||
- Actuarial gains (losses), net of tax effects |
- |
- |
- |
(404,363) | ||||
Total comprehensive income for the period |
390,197 |
745,490 |
269,272 |
337,491 | ||||
Attributable to owners of the Company |
331,813 |
721,173 |
231,565 |
358,362 | ||||
Attributable to noncontrolling interests |
58,385 |
24,319 |
37,707 |
(20,871) |
The accompanying notes are an integral part of these interim financial statements
31 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
| |||||||||||||||||||||||||
CPFL Energia S.A. | |||||||||||||||||||||||||
Statements of changes in equity for the period ended September 30, 2017 | |||||||||||||||||||||||||
(In thousands of Brazilian reais - R$) | |||||||||||||||||||||||||
Earning reserves |
Accumulated comprehensive income |
Noncontrolling interests |
|
||||||||||||||||||||||
|
|
Statutory reserves |
|
|
|
|
Accumulated comprehensive income |
|
|
||||||||||||||||
Issued capital |
Capital reserve |
Legal reserve |
Concession financial asset |
Working capital improvement |
Dividend |
Deemed cost |
Private pension plan |
Retained earnings |
Total |
Other equity components |
|
Total equity | |||||||||||||
Balance at December 31, 2016 |
5,741,284 |
468,014 |
739,102 |
702,928 |
545,505 |
7,820 |
431,713 |
(666,346) |
- |
7,970,021 |
13,572 |
2,389,076 |
10,372,668 | ||||||||||||
Total comprehensive income |
- |
- |
- |
- |
- |
- |
- |
- |
721,173 |
721,173 |
- |
24,318 |
745,490 | ||||||||||||
Profit for the period |
- |
- |
- |
- |
- |
- |
- |
- |
721,173 |
721,173 |
- |
24,318 |
745,490 | ||||||||||||
Internal changes in equity |
- |
- |
- |
58,049 |
- |
- |
(19,294) |
- |
(38,754) |
- |
(1,311) |
1,247 |
(64) | ||||||||||||
Realization of deemed cost of property, plant and equipment |
- |
- |
- |
- |
- |
- |
(29,234) |
- |
29,234 |
- |
(1,987) |
1,987 |
- | ||||||||||||
Tax effects on realization of deemed cost |
- |
- |
- |
- |
- |
- |
9,940 |
- |
(9,940) |
- |
676 |
(676) |
- | ||||||||||||
Changes in statutory reserve in the period |
- |
- |
- |
58,049 |
- |
- |
- |
- |
(58,049) |
- |
- |
- |
- | ||||||||||||
Other changes in noncontrolling interests |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(64) |
(64) | ||||||||||||
Capital transactions with owners |
- |
- |
- |
- |
- |
(7,820) |
- |
- |
2,161 |
(5,659) |
- |
(17,476) |
(23,135) | ||||||||||||
Capital increase |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
13 |
13 | ||||||||||||
Prescribed dividend |
- |
- |
- |
- |
- |
- |
- |
- |
2,161 |
2,161 |
- |
- |
2,161 | ||||||||||||
Interim dividend |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(7,226) |
(7,226) | ||||||||||||
Dividend proposal approved |
- |
- |
- |
- |
- |
(7,820) |
- |
- |
- |
(7,820) |
- |
(10,263) |
(18,082) | ||||||||||||
Balance at September 30, 2017 |
5,741,284 |
468,014 |
739,102 |
760,976 |
545,505 |
- |
412,419 |
(666,346) |
684,579 |
8,685,534 |
12,261 |
2,397,165 |
11,094,960 |
CPFL Energia S.A. | |||||||||||||||||||||||
Statements of changes in equity for the period ended September 30, 2016 | |||||||||||||||||||||||
(in thousand of Brazilian reais - R$) | |||||||||||||||||||||||
Earnings reserves |
Accumulated comprehensive income |
Noncontrolling interests |
|
||||||||||||||||||||
|
|
Statutory reserve |
|
|
|
Accumulated comprehensive income |
|
|
|||||||||||||||
Issued capital |
Capital reserve |
Legal reserve |
Concession financial asset |
Working capital improvement |
Deemed cost |
Private pension plan |
Retained earnings |
Total |
Other equity components |
|
Total equity | ||||||||||||
Balance at December 31, 2015 |
5,348,312 |
468,082 |
694,058 |
585,451 |
392,972 |
457,491 |
(272,171) |
- |
7,674,196 |
15,320 |
2,440,623 |
10,130,138 | |||||||||||
Total comprehensive income |
- |
- |
- |
- |
- |
- |
(404,363) |
762,725 |
358,362 |
- |
(20,871) |
337,491 | |||||||||||
Profit for the period |
- |
- |
- |
- |
- |
- |
- |
762,725 |
762,725 |
- |
(20,871) |
741,854 | |||||||||||
Other comprehensive income - actuarial gains (losses) |
- |
- |
- |
- |
- |
- |
(404,363) |
- |
(404,363) |
- |
- |
(404,363) | |||||||||||
Internal changes in equity |
- |
- |
- |
138,858 |
- |
(19,365) |
- |
(119,493) |
- |
(1,311) |
1,259 |
(53) | |||||||||||
Realization of deemed cost of property, plant and equipment |
- |
- |
- |
- |
- |
(29,341) |
- |
29,341 |
- |
(1,987) |
1,987 |
- | |||||||||||
Tax effect on realization of deemed cost |
- |
- |
- |
- |
- |
9,976 |
- |
(9,976) |
- |
675 |
(675) |
- | |||||||||||
Changes in statutory reserve in the period |
- |
- |
- |
138,858 |
- |
- |
- |
(138,858) |
- |
- |
- |
- | |||||||||||
Other changes in noncontrolling interests |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(53) |
(53) | |||||||||||
Capital transactions with owners |
392,972 |
220 |
- |
- |
(392,972) |
- |
- |
1,756 |
1,976 |
- |
(15,882) |
(13,907) | |||||||||||
Capital increase |
392,972 |
- |
- |
- |
(392,972) |
- |
- |
- |
- |
- |
- |
- | |||||||||||
Prescribed dividend |
- |
- |
- |
- |
- |
- |
- |
1,756 |
1,756 |
- |
- |
1,756 | |||||||||||
Dividend distributed to noncontrollers |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(16,129) |
(16,129) | |||||||||||
Dividend proposal approved |
- |
220 |
- |
- |
- |
- |
- |
- |
220 |
- |
247 |
467 | |||||||||||
Balance at September 30, 2016 |
5,741,284 |
468,302 |
694,058 |
724,308 |
- |
438,126 |
(676,534) |
644,988 |
8,034,534 |
14,009 |
2,405,128 |
10,453,670 |
The accompanying notes are an integral part of these interim financial statements.
32 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
| ||||||||
CPFL Energia SA | ||||||||
Statements of cash flow for the periods ended September 30, 2017 and 2016 | ||||||||
(in thousand of Brazilian reais - R$) | ||||||||
Parent Company |
|
Consolidated | ||||||
September 30, 2017 |
September 30, 2016 |
September 30, 2017 |
September 30, 2016 | |||||
Profit before taxes |
704,919 |
767,123 |
1,157,171 |
1,184,545 | ||||
Adjustment to reconcile profit to cash from operating activities |
||||||||
Depreciation and amortization |
163 |
148 |
1,142,302 |
936,569 | ||||
Provision for tax, civil and labor risks |
(41) |
261 |
115,102 |
180,905 | ||||
Allowance for doubtful accounts |
- |
- |
118,885 |
130,026 | ||||
Interest on debts, inflation adjustment and exchange rate changes |
59,297 |
25,722 |
1,570,060 |
1,446,963 | ||||
Pension plan expense |
- |
- |
85,426 |
51,483 | ||||
Equity interests in associates and joint ventures |
(785,487) |
(778,043) |
(252,709) |
(200,944) | ||||
Loss on disposal of noncurrent assets |
- |
- |
99,689 |
32,272 | ||||
Deferred taxes (PIS and COFINS) |
- |
- |
1,075 |
(8,933) | ||||
Others |
- |
- |
2,603 |
(1,269) | ||||
(21,149) |
15,210 |
4,039,604 |
3,751,617 | |||||
DECREASE (INCREASE) IN OPERATING ASSETS |
||||||||
Consumers, concessionaires and licensees |
- |
- |
(1,036,050) |
(507,596) | ||||
Dividend and interest on capital received |
847,766 |
1,300,253 |
579,508 |
86,282 | ||||
Taxes recoverable |
(5,220) |
7,170 |
16,699 |
113,288 | ||||
Escrow deposits |
80 |
(64) |
(247,544) |
755,342 | ||||
Sector financial asset |
- |
- |
(260,784) |
2,174,407 | ||||
Receivables - Eletrobras |
- |
- |
(17,069) |
101,456 | ||||
Concession financial assets (transmission companies) |
- |
- |
(54,625) |
(38,005) | ||||
Other operating assets |
18,633 |
7,362 |
(14,356) |
125,267 | ||||
INCREASE (DECREASE) IN OPERATING LIABILITIES |
||||||||
Trade payables |
(3,116) |
(412) |
1,420,136 |
(1,217,552) | ||||
Other taxes and social contributions |
(95) |
(135) |
(50,765) |
(65,534) | ||||
Other liabilities with private pension plan |
- |
- |
(43,040) |
(64,990) | ||||
Regulatory charges |
- |
- |
86,202 |
(567,176) | ||||
Tax, civil and labor risks paid |
(408) |
(1,060) |
(160,843) |
(175,232) | ||||
Sector financial liability |
- |
- |
(627,509) |
247,857 | ||||
Payables - amounts provided by the CDE |
- |
- |
5,847 |
(37,509) | ||||
Other operating liabilities |
(23,836) |
(4,771) |
193,761 |
(7,202) | ||||
CASH FLOWS PROVIDED BY OPERATIONS |
812,655 |
1,323,553 |
3,829,172 |
4,674,720 | ||||
Interest paid on debts and debentures |
(70,850) |
(45,470) |
(1,361,477) |
(1,229,949) | ||||
Income tax and social contribution paid |
(4) |
(27,117) |
(366,989) |
(687,539) | ||||
NET CASH FROM OPERATING ACTIVITIES |
741,801 |
1,250,966 |
2,100,706 |
2,757,232 | ||||
INVESTING ACTIVITIES |
||||||||
Capital reduce in subsidiaries |
- |
- |
91,599 |
- | ||||
Purchases of property, plant and equipment |
(141) |
(572) |
(610,054) |
(845,229) | ||||
Securities, pledges and restricted deposits |
- |
(400) |
(71,162) |
(114,050) | ||||
Purchases of intangible assets |
(10) |
- |
(1,266,817) |
(714,457) | ||||
Sale of noncurrent assets |
- |
- |
94 |
- | ||||
Advances for future capital increases |
(51,045) |
(71,020) |
- |
- | ||||
Intragroup loans |
27,981 |
(43,624) |
38,787 |
44,881 | ||||
|
|
|
| |||||
NET CASH USED IN INVESTING ACTIVITIES |
(23,215) |
(115,616) |
(1,817,553) |
(1,628,855) | ||||
FINANCING ACTIVITIES |
||||||||
Capital increase of noncontrolling shareholder |
- |
- |
13 |
247 | ||||
Borrowings and debentures raised |
- |
- |
1,545,717 |
2,290,437 | ||||
Repayment of principal of borrowings and debentures |
(434,000) |
(888,408) |
(3,766,482) |
(3,766,909) | ||||
Repayment of derivatives |
- |
(4,711) |
(143,033) |
256,508 | ||||
Business combination payment |
- |
- |
(2,507) |
(18,752) | ||||
Dividend and interest on capital paid |
(220,944) |
(204,695) |
(249,703) |
(228,045) | ||||
NET CASH GENERATED BY (USED IN) FINANCING ACTIVITIES |
(654,944) |
(1,097,814) |
(2,615,995) |
(1,466,514) | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
63,641 |
37,535 |
(2,332,842) |
(338,137) | ||||
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD |
64,973 |
424,192 |
6,164,997 |
5,682,802 | ||||
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD |
128,616 |
461,727 |
3,832,155 |
5,344,665 |
The accompanying notes are an integral part of these interim financial statements.
33 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
| |||||||
CPFL Energia S.A. | |||||||
Statements of value added for the periods ended September 30, 2017 and 2016 | |||||||
(in thousand of Brazilian reais - R$) | |||||||
Parent Company |
|
Consolidated | |||||
Nine months 2017 |
Nine months 2016 |
Nine months 2017 |
Nine months 2016 (Restated *) | ||||
1 - Revenues |
152 |
2,459 |
29,513,197 |
22,942,989 | |||
1.1 Operating revenues |
1 |
1,888 |
27,479,387 |
21,372,085 | |||
1.2 Revenue related to the construction of own assets |
151 |
572 |
671,997 |
883,981 | |||
1.3 Revenue from construction of concession infrastructure |
- |
- |
1,480,699 |
816,950 | |||
1.4 Allowance for doubtful accounts |
- |
- |
(118,885) |
(130,026) | |||
2 - (-) Inputs |
(7,315) |
(9,034) |
(16,793,150) |
(11,426,738) | |||
2.1 Electricity purchased for resale |
- |
- |
(13,566,945) |
(8,846,195) | |||
2.2 Material |
(103) |
(608) |
(1,507,519) |
(1,276,465) | |||
2.3 Outsourced services |
(5,723) |
(6,661) |
(1,193,253) |
(912,630) | |||
2.4 Others |
(1,489) |
(1,765) |
(525,433) |
(391,448) | |||
3 - Gross value added (1+2) |
(7,164) |
(6,575) |
12,720,047 |
11,516,251 | |||
4 - Retentions |
(163) |
(148) |
(1,145,999) |
(938,522) | |||
4.1 Depreciation and amortization |
(163) |
(148) |
(930,473) |
(752,249) | |||
4.2 Amortization of intangible assets of concession |
- |
- |
(215,526) |
(186,272) | |||
5 - Net value added generated (3+4) |
(7,326) |
(6,723) |
11,574,048 |
10,577,729 | |||
6 - Value Added received in transfer |
803,932 |
844,015 |
1,010,563 |
1,212,124 | |||
6.1 Financial income |
18,445 |
65,972 |
757,854 |
1,011,179 | |||
6.2 Interest in subsidiaries, associates and joint ventures |
785,487 |
778,043 |
252,709 |
200,944 | |||
7 - Value Added to be distributed (5+6) |
796,606 |
837,292 |
12,584,611 |
11,789,852 | |||
8 - Distribution of value added |
|||||||
8.1 Personnel and charges |
20,442 |
24,985 |
1,016,534 |
748,895 | |||
8.1.1 Direct remuneration |
13,329 |
14,583 |
603,673 |
463,889 | |||
8.1.2 Benefits |
5,975 |
9,338 |
361,428 |
246,535 | |||
8.1.3 Government severance indemnity fund for employees - F.G.T.S |
1,138 |
1,064 |
51,433 |
38,471 | |||
8.2 Taxes, fees and contributions |
(9,894) |
12,668 |
8,817,547 |
8,250,030 | |||
8.2.1 Federal |
(9,918) |
12,636 |
4,770,588 |
4,614,222 | |||
8.2.2 Estate |
24 |
33 |
4,030,145 |
3,622,743 | |||
8.2.3 Municipal |
- |
- |
16,814 |
13,064 | |||
8.3 Lenders and lessors |
64,886 |
36,914 |
2,005,040 |
2,049,073 | |||
8.3.1 Interest |
64,662 |
36,877 |
1,951,630 |
2,004,204 | |||
8.3.2 Rental |
223 |
37 |
53,409 |
44,868 | |||
8.4 Interest on capital |
721,173 |
762,725 |
745,490 |
741,854 | |||
8.4.1 Retained earnings |
721,173 |
762,725 |
745,490 |
741,854 | |||
796,606 |
837,292 |
12,584,611 |
11,789,852 | ||||
(*) Includes the effects of note 2.8
The accompanying notes are an integral part of these interim financial statements.
34 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
CPFL ENERGIA S.A.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
AT SEPTEMBER 30, 2017
(Amounts in thousands of Brazilian reais – R$, unless otherwise stated)
( 1 )OPERATIONS
CPFL Energia S.A. (“CPFL Energia” or “Company”) is a publicly-held corporation incorporated for the principal purpose of operating as a holding company, with equity interests in other companies primarily engaged in electric energy distribution, generation and commercialization activities in Brazil.
The Company’s registered office is located at Rodovia Engenheiro Miguel Noel Nascentes Burnier, km 2,5, Parque São Quirino - Campinas - SP - Brazil.
The Company has direct and indirect interests in the following subsidiaries and joint ventures (information on the concession area, number of consumers, energy production capacity and related data are not reviewed by the independent auditors):
Energy distribution |
Company type |
Equity interest |
Location (state) |
Number of municipalities |
Approximate number of consumers (in thousands) |
Concession period |
End of the concession | |||||||
Companhia Paulista de Força e Luz ("CPFL Paulista") |
Publicly-held corporation |
Direct 100% |
Interior of São Paulo |
234 |
4,366 |
30 years |
November 2027 | |||||||
Companhia Piratininga de Força e Luz ("CPFL Piratininga") |
Publicly-held corporation |
Direct 100% |
Interior and coast of São Paulo |
27 |
1,710 |
30 years |
October 2028 | |||||||
Rio Grande Energia S.A. ("RGE") |
Publicly-held corporation |
Direct 100% |
Interior of Rio Grande do Sul |
255 |
1,477 |
30 years |
November 2027 | |||||||
RGE Sul Distribuidora de Energia S.A. ("RGE Sul") (a) |
Publicly-held corporation |
Indirect100% |
Interior of Rio Grande do Sul |
118 |
1,333 |
30 years |
November 2027 | |||||||
Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz") |
Privately-held corporation |
Direct 100% |
Interior of São Paulo and Paraná |
27 |
212 |
30 years |
July 2045 | |||||||
Companhia Leste Paulista de Energia ("CPFL Leste Paulista") |
Privately-held corporation |
Direct 100% |
Interior of São Paulo |
7 |
58 |
30 years |
July 2045 | |||||||
Companhia Jaguari de Energia ("CPFL Jaguari") |
Privately-held corporation |
Direct 100% |
Interior of São Paulo |
2 |
41 |
30 years |
July 2045 | |||||||
Companhia Sul Paulista de Energia ("CPFL Sul Paulista") |
Privately-held corporation |
Direct 100% |
Interior of São Paulo |
5 |
86 |
30 years |
July 2045 | |||||||
Companhia Luz e Força de Mococa ("CPFL Mococa") |
Privately-held corporation |
Direct 100% |
Interior of São Paulo and Minas Gerais |
4 |
47 |
30 years |
July 2045 |
Installed power (MW) | ||||||||||||
Energy generation |
Company type |
Equity interest |
Location (state) |
Number of plants / type of energy |
Total |
CPFL share | ||||||
CPFL Geração de Energia S.A. ("CPFL Geração") |
Publicly-held corporation |
Direct 100% |
São Paulo e Goiás |
3 Hydropower (b) |
1295 |
678 | ||||||
CERAN - Companhia Energética Rio das Antas ("CERAN") |
Privately-held corporation |
Indirect 65% |
Rio Grande do Sul |
3 Hydropower |
360 |
234 | ||||||
Foz do Chapecó Energia S.A. ("Foz do Chapecó") |
Privately-held corporation |
Indirect 51% (d) |
Santa Catarina e |
1 Hydropower |
855 |
436 | ||||||
Campos Novos Energia S.A. ("ENERCAN") |
Privately-held corporation |
Indirect 48.72% |
Santa Catarina |
1 Hydropower |
880 |
429 | ||||||
BAESA - Energética Barra Grande S.A. ("BAESA") |
Publicly-held corporation |
Indirect 25.01% |
Santa Catarina e |
1 Hydropower |
690 |
173 | ||||||
Centrais Elétricas da Paraíba S.A. ("EPASA") |
Privately-held corporation |
Indirect 53.34% |
Paraíba |
2 Thermal |
342 |
182 | ||||||
Paulista Lajeado Energia S.A. ("Paulista Lajeado") |
Privately-held corporation |
Indirect 59.93% (b) |
Tocantins |
1 Hydropower |
903 |
63 | ||||||
CPFL Energias Renováveis S.A. ("CPFL Renováveis") |
Publicly-held corporation |
Indirect 51.60% |
(c) |
(c) |
(c) |
(c) | ||||||
CPFL Centrais Geradoras Ltda ("CPFL Centrais Geradoras") |
Limited liability company |
Direct 100% |
São Paulo e Minas Gerais |
6 SHPs |
4 |
4 |
Energy commercialization |
Company type |
Core activity |
Equity interest | |||
CPFL Comercialização Brasil S.A. ("CPFL Brasil") |
Privately-held corporation |
Energy commercialization |
Direct 100% | |||
Clion Assessoria e Comercialização de Energia Elétrica Ltda. ("CPFL Meridional") |
Limited liability company |
Commercialization and provision of energy services |
Indirect 100% | |||
CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul") |
Privately-held corporation |
Energy commercialization |
Indirect 100% | |||
CPFL Planalto Ltda. ("CPFL Planalto") |
Limited liability company |
Energy commercialization |
Direct 100% | |||
CPFL Brasil Varejista S.A. ("CPFL Brasil Varejista") |
Privately-held corporation |
Energy commercialization |
Indirect 100% |
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Provision of services |
Company type |
Core activity |
Equity interest | |||
CPFL Serviços, Equipamentos, Industria e Comércio S.A. |
Privately-held corporation |
Manufacturing, commercialization, rental and maintenance of electro-mechanical equipment and service provision |
Direct | |||
NECT Serviços Administrativos Ltda ("Nect") |
Limited liability company |
Provision of administrative services |
Direct | |||
CPFL Atende Centro de Contatos e Atendimento Ltda. ("CPFL Atende") |
Limited liability company |
Provision of call center services |
Direct | |||
CPFL Total Serviços Administrativos Ltda. ("CPFL Total") |
Limited liability company |
Collection services |
Direct | |||
CPFL Eficiência Energética S.A ("CPFL Eficiência") |
Privately-held corporation |
Energy efficiency management |
Direct | |||
TI Nect Serviços de Informática Ltda. ("Authi") |
Limited liability company |
Provision of IT services |
Direct | |||
CPFL GD S.A ("CPFL GD") |
Privately-held corporation |
Provision of maintenance services for energy generation companies |
Indirect | |||
Others |
Company type |
Core activity |
Equity interest | |||
CPFL Jaguariúna Participações Ltda ("CPFL Jaguariuna") |
Limited liability company |
Holding company |
Direct | |||
CPFL Jaguari de Geração de Energia Ltda ("Jaguari Geração") |
Limited liability company |
Holding company |
Direct | |||
Chapecoense Geração S.A. ("Chapecoense") |
Privately-held corporation |
Holding company |
Indirect | |||
Sul Geradora Participações S.A. ("Sul Geradora") |
Privately-held corporation |
Holding company |
Indirect | |||
CPFL Telecom S.A ("CPFL Telecom") |
Privately-held corporation |
Telecommunication services |
Direct | |||
CPFL Transmissão Piracicaba S.A ("CPFL Transmissão Piracicaba") |
Privately-held corporation |
Energy transmission services |
Indirect | |||
CPFL Transmissora Morro Agudo S.A ("CPFL Transmissão Morro Agudo") |
Privately-held corporation |
Energy transmission services |
Indirect |
a) CPFL Geração has 51.54% of the assured energy and power of the Serra da Mesa hydropower plant, which concession is owned by Furnas. The plants Carioba and Cariobinha are inactive while they await the position of the Ministry of Mines and Energy on the early termination of their concession and are not included in the table.
b) Paulista Lajeado holds a 7% interest in the installed power of Investco S.A. (5.94% interest in total capital).
c) CPFL Renováveis has operations in the states of São Paulo, Minas Gerais, Mato Grosso, Santa Catarina, Ceará, Rio Grande do Norte, Paraná and Rio Grande do Sul and its main activities are: (i) holding investments in companies of the renewable energy segment; (ii) identification, development, and exploration of generation potentials; and (iii) sale of electric energy. At September 30, 2017, CPFL Renováveis had a portfolio of 113 projects of 2,509.5 MW of installed capacity (2,102.6 MW in operation).
· Hydropower generation: 47 SHP’s (555.3 MW) with 39 SHPs in operation (423 MW) and 8 SHPs under development (132.3 MW);
· Wind power generation: 57 projects (1,583.1 MW) with 45 projects in operation (1,308.5 MW) and 12 projects under construction/development (274.6 MW);
· Biomass power generation: 8 plants in operation (370 MW);
· Solar power generation: 1 solar plant in operation (1.1 MW).
d) The joint venture Chapecoense has as its direct subsidiary Foz do Chapecó and fully consolidates its financial statements.
( 2 ) PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS
2.1 Basis of preparation
This interim individual (Parent Company) and consolidated financial statement has been prepared and is being presented in accordance with the International Accounting Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standard Board – IASB, and also based on standards issued by the Brazilian Securities and Exchange Commission (CVM), applicable to the preparation of Quarterly Financial Information (ITR), in accordance with Technical Pronouncement CPC 21 (R1) - Interim Financial Reporting.
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The Company and its subsidiaries (“Group”) also follows the guidelines of the Accounting Manual of the Brazilian Electricity Sector and the standards laid down by the Brazilian Electricity Regulatory Agency (Agência Nacional de Energia Elétrica – ANEEL), when these do not conflict with the accounting practices adopted in Brazil and/or with international Financial Reporting.
The accounting practices and criteria adopted in preparing this individual and consolidated interim financial statements are consistent with those adopted in preparing the financial statements at December 31, 2016, and therefore should be read together.
Management states that all significant information specific to interim financial statements is disclosed and corresponds to the information used in managing the Group.
The interim financial statements was approved by Management and authorized for issue on November 6, 2017.
2.2 Basis of measurement
The interim financial statements has been prepared on the historical cost basis except for the following items recorded in the statements of financial position: i) derivative financial instruments measured at fair value, ii) financial instruments measured at fair value through profit or loss, and iii) available-for-sale financial assets measured at fair value. The classification of the fair value measurement in the level 1, 2 or 3 categories (depending on the degree of observance of the variables used) is presented in note 32 – Financial Instruments.
2.3 Use of estimates and judgments
The preparation of the interim financial statements requires the Group’s management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.
By definition, the accounting estimates are rarely the same as the actual results. Accordingly, the Group’s management review the estimates and assumptions on an ongoing basis, based on previous experience and other relevant factors. Adjustments resulting from revisions to accounting estimates are recognized in the period in which the estimates are revised and applied on a prospective basis.
The main accounts that require the adoption of estimates and assumptions, which are subject to a greater degree of uncertainty and may result in a material adjustment if these estimates and assumptions suffer significant changes in subsequent periods, are:
· Note 6 – Consumers, concessionaires and licensees (Allowance for doubtful accounts);
· Note 8 – Sector financial asset and liability (certain financial components that can start without prior methodology);
· Note 9 – Deferred tax assets and liabilities (recognition of assets: availability of future taxable profit against which the tax losses can be utilized);
· Note 10 – Concession financial asset (assumptions for fair value measurement);
· Note 11 – Other receivables (allowance for doubtful accounts);
· Note 13 – Property, plant and equipment (application of definite useful lives and key assumptions regarding recoverable amounts);
· Note 14 – Intangible assets (key assumptions regarding recoverable amounts);
· Note 18 – Private pension plan (key actuarial assumptions used in the measurement of defined benefit obligations);
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· Note 21 – Provision for tax, civil and labor risks and escrow deposits (recognition and measurement: key assumptions on the probability and magnitude of outflow of resources);
· Note 25 – Net operating revenue (assumptions for measurement of unbilled supply and Distribution System Usage Tariff - TUSD ); and
· Note 32 – Financial instruments (assumptions for fair value measurement).
2.4 Functional currency and presentation currency
The Group’s functional currency is the Brazilian Real, and the individual and consolidated interim financial statements is being presented in thousands of reais. Figures are rounded only after sum-up of the amounts. Consequently, when summed up, the amounts stated in thousands of reais may not tally with the rounded totals.
2.5 Segment information
An operating segment is a component of the Company (i) that engages in operating activities from which it earns revenues and incurs expenses, (ii) whose operating results are regularly reviewed by Management to make decisions about resources to be allocated and assess the segment's performance, and (iii) for which individual financial information is available.
The Group’s officers use reports to make strategic decisions, segmenting the business into: (i) electric energy distribution activities (“Distribution”); (ii) electric energy generation from conventional sources activities (“Generation”); (iii) electric energy generation activities from renewable sources (“Renewables”); (iv) energy commercialization activities (“Commercialization”); (v) service activities (“Services”); and (vi) other activities not listed in the previous items.
The presentation of the operating segments includes items directly attributable to them, as well as any allocations required, including intangible assets, see note 29 for further details.
2.6 Information on equity interests
The Company's equity interests in direct and indirect subsidiaries and joint ventures are described in note 1. Except for (i) the companies ENERCAN, BAESA, Chapecoense and EPASA, which use the equity method of accounting, and (ii) the investment measured at cost by the subsidiary Paulista Lajeado in Investco S.A., all other entities are fully consolidated.
At September 30, 2017 and December 31, 2016, and for the quarters and nine months periods ended September 30, 2017 and 2016, the noncontrolling interests in the consolidated balances refer to interests held by third parties in subsidiaries CERAN, Paulista Lajeado and CPFL Renováveis.
2.7 Statement of value added
The Company has prepared the individual and consolidated statements of value added (“DVA”) in conformity with technical pronouncement CPC 09 - Statement of Value Added, which are presented as an integral part of the interim financial statements in accordance with accounting practices adopted in Brazil and as supplementary information to the interim financial statements in accordance with IFRS, as this statement is neither provided for nor required by IFRS.
2.8 Restatements in the quarter and nine months period ended September 30, 2016 interim financial statements
As mentioned in note 2.8 to the financial statements at December 31, 2016, the Company and its electricity distribution subsidiaries, for a better presentation of their operating and financial performance, concluded that the adjustment of the expected cash flow of the indemnifiable financial asset of the concession of each distribution company, previously presented in the line item of finance income, within finance income (expenses), should be more properly classified in the group of operating income, together with the other income related to their core activity. This allocation reflects more accurately the electricity distribution business model and allows a better presentation regarding its performance.
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According to the guidance in CPC 23 – Accounting Policies, Changes in Accounting Estimates and Errors, the Company and its subsidiaries changed their accounting policy previously adopted to an accounting policy that better reflects the business performance of the Company and its subsidiaries (for the reasons mentioned above) and, therefore, made the retrospective reclassifications in their corresponding information submitted for comparative purposes corresponding to the statements of profit or loss and value added, in relation to those originally issued on November 7, 2016.
The reclassifications made do not change the total assets, equity and profit for the period, or the statement of cash flows.
The statements of profit or loss and value added, for comparability purposes, are presented below:
Statement of profit or loss for the period
Consolidated |
Consolidated | |||||||||||
3rd quarter 2016 |
Reclassifications |
3rd quarter 2016 (Restated) |
Nine months 2016 |
Reclassifications |
Nine months 2016 (Restated) | |||||||
Net operating revenue |
4,737,375 |
45,440 |
4,782,815 |
13,402,846 |
197,461 |
13,600,307 | ||||||
Cost of electric energy services |
||||||||||||
Cost of electric energy |
(2,770,513) |
- |
(2,770,513) |
(7,963,080) |
- |
(7,963,080) | ||||||
Cost of operation |
(562,184) |
- |
(562,184) |
(1,622,816) |
- |
(1,622,816) | ||||||
Cost of services rendered to third parties |
(324,990) |
- |
(324,990) |
(817,558) |
- |
(817,558) | ||||||
Gross profit |
1,079,688 |
45,440 |
1,125,128 |
2,999,391 |
197,461 |
3,196,852 | ||||||
Operating expenses |
||||||||||||
Selling expenses |
(123,680) |
- |
(123,680) |
(387,775) |
- |
(387,775) | ||||||
General and administrative expenses |
(192,069) |
- |
(192,069) |
(607,198) |
- |
(607,198) | ||||||
Other operating expenses |
(74,560) |
- |
(74,560) |
(218,402) |
- |
(218,402) | ||||||
Income from electric energy services |
689,379 |
45,440 |
734,819 |
1,786,017 |
197,461 |
1,983,477 | ||||||
Equity interests in subsidiaries, associates and joint ventures |
68,826 |
- |
68,826 |
200,944 |
- |
200,944 | ||||||
Finance income (costs) |
||||||||||||
Finance income |
335,467 |
(49,157) |
286,310 |
1,141,838 |
(209,684) |
932,154 | ||||||
Finance costs |
(706,920) |
3,717 |
(703,203) |
(1,944,253) |
12,223 |
(1,932,030) | ||||||
(371,453) |
(45,440) |
(416,893) |
(802,416) |
(197,461) |
(999,877) | |||||||
Profit before taxes |
386,752 |
- |
386,752 |
1,184,545 |
- |
1,184,545 | ||||||
Social contribution |
(35,448) |
- |
(35,448) |
(125,116) |
- |
(125,116) | ||||||
Income tax |
(82,031) |
- |
(82,031) |
(317,575) |
- |
(317,575) | ||||||
(117,480) |
- |
(117,480) |
(442,691) |
- |
(442,691) | |||||||
Profit for the period |
269,272 |
- |
269,272 |
741,854 |
- |
741,854 | ||||||
Profit for the period attributable to owners of the Company |
231,565 |
762,725 | ||||||||||
Profit (loss) for the period attributable to noncontrolling interests |
37,707 |
(20,871) | ||||||||||
Basic earnings per share attributable to owners of the Company - R$ |
0.23 |
0.75 | ||||||||||
Diluted earnings per share attributable to owners of the Company - R$ |
0.22 |
0.74 |
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Statement of value added for the period
Consolidated | ||||||
Nine months 2016 |
Reclassifications |
Nine months 2016 (Restated) | ||||
1 - Revenues |
22,745,528 |
197,461 |
22,942,989 | |||
1.1 Operating revenues |
21,174,624 |
197,461 |
21,372,085 | |||
1.2 Revenue related to construction of own assets |
883,981 |
- |
883,981 | |||
1.3 Revenue from construction of concession infrastructure |
816,950 |
- |
816,950 | |||
1.4 Allowance for doubtful accounts |
(130,026) |
- |
(130,026) | |||
2 - (-) Inputs purchased from third parties |
(11,426,738) |
- |
(11,426,738) | |||
2.1 Electricity purchased for resale |
(8,846,195) |
- |
(8,846,195) | |||
2.2 Material |
(1,276,465) |
- |
(1,276,465) | |||
2.3 Outsourced services |
(912,630) |
- |
(912,630) | |||
2.4 Others |
(391,448) |
- |
(391,448) | |||
3 - Gross value added (1+2) |
11,318,790 |
197,461 |
11,516,251 | |||
4 - Retentions |
(938,522) |
- |
(938,522) | |||
4.1 Depreciation and amortization |
(752,249) |
- |
(752,249) | |||
4.2 Amortization of intangible assets of concession |
(186,272) |
- |
(186,272) | |||
5 - Net value added generated (3+4) |
10,380,269 |
197,461 |
10,577,729 | |||
6 - Value Added received in transfer |
1,421,808 |
(209,684) |
1,212,124 | |||
6.1 Finance income |
1,220,863 |
(209,684) |
1,011,179 | |||
6.2 Share of profit (loss) of investees |
200,944 |
- |
200,944 | |||
7 - Value Added to be distributed (5+6) |
11,802,074 |
(12,223) |
11,789,852 | |||
8 - Distribution of value added |
||||||
8.1 Personnel and charges |
748,895 |
- |
748,895 | |||
8.1.1 Direct remuneration |
463,889 |
- |
463,889 | |||
8.1.2 Benefits |
246,535 |
- |
246,535 | |||
8.1.3 Government severance indemnity fund for employees - F.G.T.S |
38,471 |
- |
38,471 | |||
8.2 Taxes, fees and contributions |
8,250,030 |
- |
8,250,030 | |||
8.2.1 Federal |
4,614,222 |
- |
4,614,222 | |||
8.2.2 Estate |
3,622,743 |
- |
3,622,743 | |||
8.2.3 Municipal |
13,064 |
- |
13,064 | |||
8.3 Lenders and lessors |
2,061,296 |
(12,223) |
2,049,073 | |||
8.3.1 Interest |
2,016,427 |
(12,223) |
2,004,204 | |||
8.3.2 Rental |
44,868 |
- |
44,868 | |||
8.4 Interest on capital |
741,854 |
- |
741,854 | |||
8.4.1 Retained earnings |
741,854 |
- |
741,854 | |||
11,802,074 |
(12,223) |
11,789,852 |
( 3 ) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The interim financial statements of the Group has been prepared based on the same accounting policies described in notes 3.1 to 3.18, disclosed in the financial statements for the year ended December 31, 2016.
( 4 ) FAIR VALUE MEASUREMENT
A number of the Group’s accounting policies and disclosures require the fair value measurement, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and / or disclosure purposes based on the following methods. When applicable, additional information on the assumptions made in the fair value measurement is disclosed in the notes specific to that asset or liability.
Accordingly, the Group measures fair value in accordance with IFRS 13 / CPC 46, which defines the fair value as the price estimate for which an unforced transaction for the sale of the asset or transfer of the liability would occur between market participants under current market conditions at the measurement date.
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- Property, plant and equipment and intangible assets
The fair value of property, plant and equipment and intangible assets recognized as a result of a business combination is based on market values. The fair value of these assets is the estimated value for which an asset could be exchanged on the valuation date between knowledgeable interested parties in an unforced transaction between market participants at the measurement date. The fair value of items of property, plant and equipment is based on the market approach and cost approaches using quoted market prices for similar items when available and replacement cost when appropriate.
- Financial instruments
Financial instruments measured at fair value are valued based on quoted prices in an active market, or, if such prices are not available, they are assessed using pricing models, applied individually to each transaction, taking into consideration future payment flows, based on the contractual conditions, discounted to present value at rates obtained from market interest curves, having as a basis, whenever available, information obtained from the websites of B3 S.A. - Brasil, Bolsa, Balcão (“B3”) and “Associação Brasileira das Entidades dos Mercados Financeiro e de Capitais – ANBIMA” (note 32) and also includes the debtor's credit risk rate.
Financial assets classified as available-for-sale refer to the right to compensation, to be paid by the Federal Government when the distribution concessionaires’ assets are handed over at the end of the concession period. The methodology adopted for fair value measurement of these assets is based on the tariff review process for distributors. This process, conducted every four or five years according to each concessionaire, involves assessing the replacement price of the distribution infrastructure, in accordance with criteria established by the granting authority (“ANEEL”). This valuation basis is used for pricing the tariff, which is adjusted annually up to the next tariff review, based on the parameter of the main inflation indices.
Accordingly, at the time of the tariff review, each distribution concessionaire adjusts the position of the financial asset base for compensation at the amounts ratified by the granting authority and uses the Extended Consumer Price Index (“IPCA”) as the best estimate to adjust the original base to the adjusted value at subsequent dates, in accordance with the tariff review process.
( 5 ) CASH AND CASH EQUIVALENTS
Parent company |
Consolidated | ||||||
September 30, 2017 |
December 31, 2016 |
September 30, 2017 |
December 31, 2016 | ||||
Bank balances |
3,460 |
426 |
158,243 |
170,884 | |||
Short-term financial investments |
125,156 |
64,548 |
3,673,913 |
5,994,112 | |||
Overnight investment (a) |
21,657 |
64,541 |
138,778 |
95,034 | |||
Bank certificates of deposit (b) |
- |
- |
1,455,836 |
2,357,187 | |||
Repurchase agreements secured on debentures (b) |
- |
- |
64,887 |
58,616 | |||
Investment funds (c) |
103,499 |
6 |
2,014,411 |
3,483,273 | |||
Total |
128,616 |
64,973 |
3,832,155 |
6,164,997 |
a) Bank account balances, which earn daily interest by investment in repurchase agreements secured on Bank Certificate Deposit (CDB) and interest of 15% of the variation in the Interbank Certificate of Deposit (CDI).
b) Short-term investments in Bank Certificates of Deposit (CDB) and secured debentures with major financial institutions that operate in the Brazilian financial market, with daily liquidity, short term maturity, low credit risk and interest equivalent, on average, to 101.9% of the CDI.
c) Exclusive Fund investments, with daily liquidity and interest equivalent, on average, to 101.9% of the CDI, subject to floating rates tied to the CDI linked to federal government bonds, CDBs, financial bills and secured debentures of major financial institutions, with low credit risk and short term maturity.
( 6 ) CONSUMERS, CONCESSIONAIRES AND LICENSEES
The consolidated balance includes mainly activities from the supply of electric energy, broken down as follows at September 30, 2017 and December 31, 2016:
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Consolidated | |||||||||
Amounts |
Past due |
Total | |||||||
coming due |
until 90 days |
> 90 days |
September 30, 2017 |
December 31, 2016 | |||||
Current |
|||||||||
Consumer classes |
|||||||||
Residential |
617,550 |
393,753 |
55,275 |
1,066,578 |
932,380 | ||||
Industrial |
268,298 |
67,081 |
81,741 |
417,120 |
386,826 | ||||
Commercial |
238,968 |
69,978 |
41,941 |
350,888 |
317,111 | ||||
Rural |
72,522 |
13,864 |
5,883 |
92,269 |
97,444 | ||||
Public administration |
63,763 |
11,769 |
2,906 |
78,438 |
94,348 | ||||
Public lighting |
53,416 |
6,061 |
2,817 |
62,294 |
73,142 | ||||
Public utilities |
82,703 |
7,534 |
5,319 |
95,556 |
97,503 | ||||
Billed |
1,397,219 |
570,041 |
195,882 |
2,163,142 |
1,998,754 | ||||
Unbilled |
919,652 |
- |
- |
919,652 |
1,095,188 | ||||
Financing of consumers' debts |
181,855 |
21,436 |
38,545 |
214,507 |
170,981 | ||||
CCEE transactions |
935,636 |
39,468 |
4,053 |
979,157 |
289,761 | ||||
Concessionaires and licensees |
542,003 |
287 |
7,593 |
549,883 |
390,333 | ||||
Others |
49,324 |
- |
- |
49,324 |
39,974 | ||||
4,025,689 |
631,232 |
246,074 |
4,875,664 |
3,984,989 | |||||
Allowance for doubtful accounts |
(230,993) |
(219,098) | |||||||
Total |
4,644,672 |
3,765,893 | |||||||
Non current |
|||||||||
Financing of consumers' debts |
224,574 |
- |
- |
224,574 |
198,875 | ||||
Free energy |
5,873 |
- |
- |
5,873 |
5,436 | ||||
CCEE transactions |
41,301 |
- |
- |
41,301 |
41,301 | ||||
271,748 |
- |
- |
271,748 |
245,612 | |||||
Allowance for doubtful accounts |
(29,097) |
(42,427) | |||||||
Total |
242,650 |
203,185 |
Allowance for doubtful accounts
Movements in the Allowance for doubtful accounts are shown below:
Consumers, concessionaires and licensees |
Other |
Total | |||
At of December 31, 2016 |
(261,525) |
(27,992) |
(289,517) | ||
Allowance - reversal (recognition) |
(202,911) |
(760) |
(203,672) | ||
Recovery of revenue |
84,787 |
- |
84,787 | ||
Write-off of accrued receivables |
119,560 |
300 |
119,860 | ||
At of September 30, 2017 |
(260,090) |
(28,453) |
(288,543) | ||
Current |
(230,993) |
(28,453) |
(259,445) | ||
Noncurrent |
(29,097) |
- |
(29,097) |
The allowance for doubtful debts is set up based on the history and probability of default and, specifically for distributors, according to the following criteria:
Class |
Past due over: |
Residential |
90 days |
Commercial |
180 days |
Other classes |
360 days |
Sundry bills |
180 days |
Debts in installments |
90 days. In the event of default in one of the installments, the whole receivable from the customer is subject to impairment. |
42 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 7 ) TAXES RECOVERABLE
Parent company |
Consolidated | ||||||
September 30, 2017 |
December 31, 2016 |
September 30, 2017 |
December 31, 2016 | ||||
Current |
|||||||
Prepayments of social contribution - CSLL |
- |
5,508 |
4,890 |
14,141 | |||
Prepayments of income tax - IRPJ |
- |
2,282 |
12,893 |
35,534 | |||
Income tax and social contribution to be offset |
86,293 |
45,457 |
128,019 |
94,268 | |||
Income tax and social contribution to be offset |
86,293 |
53,246 |
145,802 |
143,943 | |||
Withholding income tax - IRRF on interest on capital |
2,482 |
3,126 |
2,482 |
3,642 | |||
Withholding income tax - IRRF |
1,716 |
26,150 |
74,515 |
115,189 | |||
State VAT - ICMS to be offset |
- |
- |
99,798 |
82,090 | |||
Social Integration Program - PIS |
55 |
52 |
7,491 |
9,062 | |||
Contribution for Social Security Funding - COFINS |
279 |
262 |
33,000 |
39,984 | |||
National Social Security Institute - INSS |
- |
- |
7,374 |
6,374 | |||
Others |
- |
0 |
2,397 |
3,564 | |||
Others taxes to be offset |
4,532 |
29,589 |
227,057 |
259,905 | |||
|
|
|
| ||||
Total |
90,825 |
82,836 |
372,859 |
403,848 | |||
Noncurrent |
|||||||
Social contribution to be offset - CSLL |
- |
- |
58,036 |
55,498 | |||
Income tax to be offset - IRPJ |
- |
- |
12,060 |
10,037 | |||
Income tax and social contribution to be offset |
- |
- |
70,096 |
65,535 | |||
State VAT - ICMS to be offset |
- |
- |
152,502 |
122,415 | |||
Social Integration Program - PIS |
- |
- |
1,029 |
800 | |||
Contribution for Social Security Funding - COFINS |
- |
- |
4,743 |
3,687 | |||
National Social Security Institute - INSS |
- |
- |
1,526 |
- | |||
Others |
- |
- |
2,483 |
5,849 | |||
Others taxes to be offset |
- |
- |
162,283 |
132,751 | |||
Total |
- |
- |
232,379 |
198,286 |
( 8 ) SECTOR FINANCIAL ASSET AND LIABILITY
The breakdown of the balances of sector financial asset and liability and the movement for the period are as follows:
Consolidated | |||||||||||||||||||
At December 31, 2016 |
Operating revenue |
Finance income or expense |
Receipt |
At September 30, 2017 | |||||||||||||||
Deferred |
Approved |
Total |
Constitution |
Through billing |
Monetary adjustment |
Tariff flag |
Deferred |
Approved |
Total | ||||||||||
Parcel "A" |
(762,573) |
190,369 |
(572,203) |
636,019 |
238,931 |
(81,690) |
(160,995) |
424,503 |
(364,442) |
60,062 | |||||||||
CVA (*) |
|||||||||||||||||||
CDE (**) |
(342,161) |
(70,301) |
(412,462) |
(347,989) |
208,670 |
(32,517) |
- |
(323,583) |
(260,714) |
(584,297) | |||||||||
Electric energy cost |
(506,490) |
(239,777) |
(746,267) |
1,256,796 |
614,024 |
(44,379) |
(160,457) |
1,130,526 |
(210,809) |
919,717 | |||||||||
ESS and EER (***) |
(406,568) |
(124,411) |
(530,979) |
(579,831) |
303,218 |
(43,858) |
(151) |
(721,314) |
(130,287) |
(851,601) | |||||||||
Proinfa |
3,492 |
31,414 |
34,906 |
(30,284) |
(24,383) |
(1,467) |
- |
(15,943) |
(5,284) |
(21,227) | |||||||||
Basic network charges |
27,527 |
9,660 |
37,187 |
(58,532) |
(23,305) |
597 |
- |
(56,754) |
12,701 |
(44,053) | |||||||||
Pass-through from Itaipu |
147,012 |
442,911 |
589,923 |
675,851 |
(537,367) |
24,950 |
- |
665,331 |
88,025 |
753,356 | |||||||||
Transmission from Itaipu |
7,646 |
7,281 |
14,927 |
563 |
(10,154) |
347 |
- |
1,434 |
4,249 |
5,683 | |||||||||
Neutrality of industry charges |
142,091 |
164,375 |
306,466 |
112,574 |
(209,031) |
5,599 |
- |
135,590 |
80,018 |
215,608 | |||||||||
Overcontracting |
164,878 |
(30,782) |
134,096 |
(393,129) |
(82,741) |
9,037 |
(387) |
(390,784) |
57,659 |
(333,125) | |||||||||
Other financial components |
(182,958) |
(159,759) |
(342,717) |
1,187 |
173,147 |
909 |
- |
(119,256) |
(48,218) |
(167,474) | |||||||||
Refunds related to judicial injunctions |
(76,615) |
(132,410) |
(209,025) |
(5,386) |
156,470 |
801 |
- |
- |
(57,140) |
(57,140) | |||||||||
Others |
(106,343) |
(27,349) |
(133,692) |
6,573 |
16,677 |
108 |
- |
(119,256) |
8,922 |
(110,334) | |||||||||
Total |
(945,530) |
30,612 |
(914,918) |
637,205 |
412,078 |
(80,781) |
(160,995) |
305,248 |
(412,660) |
(107,412) | |||||||||
Current assets |
- |
5,449 | |||||||||||||||||
Noncurrent assets |
- |
348,157 | |||||||||||||||||
Current liabilities |
(597,515) |
(384,115) | |||||||||||||||||
Noncurrent liabilities |
(317,406) |
(76,902) |
(*) Deferred tariff costs and gains variations from Parcel “A” items
(**) Energy Development Account – CDE
(***) System Service Charge (ESS) and Reserve Energy Charge (EER)
43 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
The details of the nature of each sector financial asset and liability are provided in Note 8 to the financial statements at December 31, 2016.
( 9 )DEFERRED TAX ASSETS AND LIABILITIES
9.1 Breakdown of tax assets and liabilities
Parent company |
Consolidated | ||||||
September 30, 2017 |
December 31, 2016 |
September 30, 2017 |
December 31, 2016 | ||||
Social contribution credit/(debit) |
|||||||
Tax losses carryforwards |
48,872 |
42,841 |
109,957 |
123,389 | |||
Tax benefit of merged intangible |
- |
- |
80,544 |
86,377 | |||
Temporarily nondeductible differences |
912 |
1,125 |
(280,382) |
(332,750) | |||
Subtotal |
49,785 |
43,966 |
(89,881) |
(122,984) | |||
Income tax credit / (debit) |
|||||||
Tax losses carryforwards |
135,025 |
123,980 |
313,348 |
358,683 | |||
Tax benefit of merged intangible |
- |
- |
275,557 |
295,986 | |||
Temporarily nondeductible differences |
2,516 |
3,126 |
(776,829) |
(923,383) | |||
Subtotal |
137,541 |
127,106 |
(187,924) |
(268,713) | |||
PIS and COFINS credit/(debit) |
|||||||
Temporarily nondeductible differences |
- |
- |
(10,655) |
(9,580) | |||
Total |
187,326 |
171,073 |
(288,460) |
(401,276) | |||
Total tax credit |
187,326 |
171,073 |
979,110 |
922,858 | |||
Total tax debit |
- |
- |
(1,267,570) |
(1,324,134) |
The expected recovery of the deferred tax assets recorded in noncurrent assets, arising from nondeductible temporary differences, tax benefit of merged intangible and income tax and social contribution losses, the breakdown of which is described in the financial statements at December 31, 2016, is based on the projections of future profits, approved by the Board of Directors and reviewed by the Fiscal Council. To reflect adequately the effective rate of the taxes on profit, deferred tax assets are recognized monthly on any losses for companies that have positive projections, in accordance with such studies.
9.2 Tax benefit of merged intangible asset
Refers to the tax credit calculated on the intangible assets derived from the acquisition of subsidiaries, as shown in the following table, which were merged and are recognized in accordance with the concepts of CVM Instructions No. 319/1999 and No. 349/2001 and ICPC 09 (R2) - Individual Financial Statements, Separate Financial Statements, Consolidated Financial Statements and Application of the Equity Method. The benefit is being realized in proportion to the tax amortization of the merged intangible assets that originated them as per CPC 27 and CPC 04 (R1) - Clarification of acceptable methods of depreciation and amortization, over the remaining concession period, as shown in note 14.
Consolidated | |||||||
September 30, 2017 |
December 31, 2016 | ||||||
Social contribution |
Income tax |
Social contribution |
Income tax | ||||
CPFL Paulista |
47,028 |
130,633 |
50,497 |
140,270 | |||
CPFL Piratininga |
11,474 |
39,379 |
12,251 |
42,044 | |||
RGE |
22,042 |
91,029 |
23,629 |
97,584 | |||
CPFL Geração |
- |
14,517 |
- |
16,090 | |||
Total |
80,544 |
275,557 |
86,377 |
295,987 |
44 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
9.3 Accumulated balances on nondeductible temporary differences
Consolidated | |||||||||||
September 30, 2017 |
December 31, 2016 | ||||||||||
Social contribution |
Income tax |
PIS/COFINS |
Social contribution |
Income tax |
PIS/COFINS | ||||||
Temporarily nondeductible differences |
|||||||||||
Provision for tax, civil and labor risks |
53,480 |
148,555 |
- |
45,065 |
125,182 |
- | |||||
Private pension fund |
2,182 |
6,062 |
- |
1,711 |
4,753 |
- | |||||
Allowance for doubtful accounts |
26,663 |
74,064 |
- |
26,543 |
73,729 |
- | |||||
Free energy supply |
8,255 |
22,931 |
- |
7,718 |
21,440 |
- | |||||
Research and development and energy efficiency programs |
20,726 |
57,572 |
- |
17,474 |
48,538 |
- | |||||
Personnel-related provisions |
2,231 |
6,198 |
- |
3,422 |
9,506 |
- | |||||
Depreciation rate difference |
5,708 |
15,856 |
- |
6,200 |
17,223 |
- | |||||
Derivatives |
(38,587) |
(107,185) |
- |
(54,368) |
(151,023) |
- | |||||
Recognition of concession - adjustment of intangible asset (IFRS/CPC) |
(7,584) |
(21,066) |
- |
(8,355) |
(23,208) |
- | |||||
Recognition of concession - adjustment of financial asset (IFRS/CPC) |
(107,393) |
(296,225) |
(7,918) |
(104,080) |
(287,990) |
(6,157) | |||||
Actuarial losses (IFRS/CPC) |
25,648 |
71,244 |
- |
25,390 |
70,527 |
- | |||||
Financial instruments (IFRS/CPC) |
(6,688) |
(18,577) |
- |
(10,022) |
(27,838) |
- | |||||
Accelerated depreciation |
(97) |
(270) |
- |
(73) |
(204) |
- | |||||
Others |
(16,108) |
(44,828) |
(2,737) |
4,491 |
12,281 |
(3,423) | |||||
Temporarily nondeductible differences - accumulated |
|||||||||||
Property, plant and equipment - adjustment of deemed cost (IFRS/CPC) |
(52,789) |
(146,637) |
- |
(55,223) |
(153,398) |
- | |||||
Actuarial losses (IFRS/CPC) |
49,699 |
138,051 |
- |
49,698 |
138,051 |
- | |||||
Temporarily nondeductible differences - business combination |
|||||||||||
Deferred taxes - asset: |
|||||||||||
Provision for tax, civil and labor risks |
13,505 |
37,516 |
- |
- |
- |
- | |||||
Fair value of property, plant and equipment (negative value added of assets) |
21,646 |
60,129 |
- |
22,771 |
63,252 |
- | |||||
Deferred taxes - liability: |
|||||||||||
Fair value of property, plant and equipment (value added of assets) |
(26,227) |
(72,851) |
- |
(27,472) |
(76,310) |
- | |||||
Value added derived from determination of deemed cost |
(64,142) |
(178,173) |
- |
(78,443) |
(217,897) |
- | |||||
Intangible asset - exploration right/authorization in indirect subsidiaries acquired |
(186,932) |
(519,255) |
- |
(183,443) |
(509,563) |
- | |||||
Other temporary differences |
(3,578) |
(9,940) |
- |
(21,754) |
(60,435) |
- | |||||
Total |
(280,382) |
(776,829) |
(10,655) |
(332,750) |
(923,383) |
(9,580) |
9.4 Reconciliation of the income tax and social contribution amounts recognized in the statements of profit or loss for the quarters and nine months periods ended September 30, 2017 and 2016:
Parent company |
Consolidated | ||||||||||||||
Social contribution |
Social contribution | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
3rd Quarter |
|
Nine months |
3rd Quarter |
|
Nine months |
3rd Quarter |
|
Nine months |
3rd Quarter |
|
Nine months | ||||
Profit before taxes |
330,120 |
704,919 |
234,781 |
767,123 |
546,404 |
1,157,171 |
386,752 |
1,184,545 | |||||||
Reconciliation to reflect effective rate: |
|||||||||||||||
Equity in subsidiaries |
(353,447) |
(785,487) |
(231,233) |
(778,043) |
(90,031) |
(252,709) |
(68,826) |
(200,944) | |||||||
Amortization of intangible asset acquired |
(3,382) |
(10,146) |
(3,382) |
(10,146) |
12,162 |
36,487 |
12,162 |
36,487 | |||||||
Effect of presumed profit system |
- |
- |
- |
- |
(158,888) |
(255,639) |
(98,114) |
(117,191) | |||||||
Adjustment of revenue from excess demand and excess reactive power |
- |
- |
- |
- |
33,040 |
106,508 |
27,545 |
90,011 | |||||||
Interest on capital income |
16,545 |
16,545 |
- |
12,048 |
- |
- |
- |
- | |||||||
Other permanent additions (exclusions), net |
1,979 |
9,519 |
2,038 |
7,690 |
42,213 |
61,373 |
(2,072) |
(12) | |||||||
Tax base |
(8,184) |
(64,650) |
2,205 |
(1,328) |
384,899 |
853,191 |
257,448 |
992,895 | |||||||
Statutory rate |
9% |
9% |
9% |
9% |
9% |
9% |
9% |
9% | |||||||
Tax credit/(debit) |
737 |
5,818 |
(198) |
120 |
(34,641) |
(76,787) |
(23,170) |
(89,361) | |||||||
Tax credit recorded (not recorded), net |
- |
- |
- |
- |
(9,880) |
(36,598) |
(12,279) |
(35,756) | |||||||
Recorded (unrecognized) Tax credit, net |
737 |
5,818 |
(198) |
120 |
(44,521) |
(113,385) |
(35,448) |
(125,116) | |||||||
Current |
- |
- |
2,601 |
(4,623) |
(53,228) |
(118,526) |
(63,029) |
(213,352) | |||||||
Deferred |
737 |
5,818 |
(2,799) |
4,743 |
8,706 |
5,142 |
27,580 |
88,236 | |||||||
Parent company |
Consolidated | ||||||||||||||
Income tax |
Income tax | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
3rd Quarter |
|
Nine months |
3rd Quarter |
|
Nine months |
3rd Quarter |
|
Nine months |
3rd Quarter |
|
Nine months | ||||
Profit before taxes |
330,120 |
704,919 |
234,781 |
767,123 |
546,404 |
1,157,171 |
386,752 |
1,184,545 | |||||||
Reconciliation to reflect effective rate: |
|||||||||||||||
Equity in subsidiaries |
(353,447) |
(785,487) |
(231,233) |
(778,043) |
(90,031) |
(252,709) |
(68,826) |
(200,944) | |||||||
Amortization of intangible asset acquired |
- |
- |
- |
- |
15,689 |
47,067 |
15,689 |
47,067 | |||||||
Effect of presumed profit system |
- |
- |
- |
- |
(182,775) |
(312,049) |
(117,838) |
(161,477) | |||||||
Adjustment of revenue from excess demand and excess reactive power |
- |
- |
- |
- |
33,040 |
106,508 |
27,545 |
90,011 | |||||||
Interest on capital income |
16,545 |
16,545 |
- |
12,048 |
- |
- |
- |
- | |||||||
Tax incentive - operating profit |
- |
- |
- |
- |
(20,657) |
(27,518) |
(45,045) |
(59,056) | |||||||
Other permanent additions (exclusions), net |
2,958 |
22,283 |
8,520 |
16,940 |
36,987 |
70,720 |
(6,677) |
(27,098) | |||||||
Tax base |
(3,824) |
(41,740) |
12,069 |
18,068 |
338,657 |
789,191 |
191,600 |
873,048 | |||||||
Statutory rate |
25% |
25% |
25% |
25% |
25% |
25% |
25% |
25% | |||||||
Tax credit/(debit) |
956 |
10,435 |
(3,017) |
(4,517) |
(84,664) |
(197,298) |
(47,900) |
(218,262) | |||||||
Recorded (unrecognized) Tax credit, net |
- |
- |
- |
- |
(27,021) |
(100,999) |
(34,132) |
(99,313) | |||||||
Total |
956 |
10,435 |
(3,017) |
(4,517) |
(111,686) |
(298,296) |
(82,031) |
(317,575) | |||||||
Current |
- |
- |
5,500 |
(16,438) |
(131,035) |
(301,322) |
(156,464) |
(557,938) | |||||||
Deferred |
956 |
10,435 |
(8,517) |
11,921 |
19,349 |
3,026 |
74,432 |
240,363 |
45 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 10 ) CONCESSION FINANCIAL ASSET
Distribution |
Transmission |
Consolidated | |||
At December 31, 2016 |
5,193,511 |
180,333 |
5,373,844 | ||
Current |
- |
10,700 |
10,700 | ||
Noncurrent |
5,193,511 |
169,633 |
5,363,144 | ||
Additions |
809,944 |
45,983 |
855,926 | ||
Adjustment of expected cash flow |
97,155 |
- |
97,155 | ||
Adjustment - financial asset measured at amortized cost |
- |
20,287 |
20,287 | ||
Cash inputs - RAP |
- |
(9,936) |
(9,936) | ||
Disposals |
(25,850) |
- |
(25,850) | ||
Business combination |
(12,338) |
- |
(12,338) | ||
|
|||||
At September 30, 2017 |
6,062,420 |
236,667 |
6,299,088 | ||
Current |
- |
11,437 |
11,437 | ||
Noncurrent |
6,062,420 |
225,230 |
6,287,650 |
The balance refers to the financial asset corresponding to the right established in the concession agreements of the energy distribution (measured at fair value) and transmission (measured at amortized cost) companies to receive cash (i) through compensation at the time assets are handed over to the granting authority at the end of the concession, and (ii) the transmission companies’ right to receive cash over the concession period through allowed annual revenue ("RAP").
For energy distribution companies, according to the current tariff model, the remuneration for this asset is recognized in profit or loss upon billing to consumers and the realization occurs upon receipt of the electric energy bills. Moreover, the difference to adjust the balance to the expected cash flow receipts at fair value (new replacement value - “VNR” - note 4) is recognized as a balancing item to the operating income account (note 25) in the statement of profit or loss for the period.
For energy transmission companies, the remuneration for this asset is recognized according to the internal rate of return, which takes into account the investment made, the allowed annual revenue (“RAP”) to be received over the concession period, and the compensation to be received at the time assets are handed over to the granting authority. The adjustment of R$ 20,287 is recognized against other operating revenues and income (R$ 11,171 in the nine months period ended September 30, 2016).
The balances disclosed in the "Business Combinations" line refer to the complementary amounts related to the acquisition of RGE Sul, which final recognition occurred on September 30, 2017, according to note 12.5.
( 11 ) OTHER RECEIVABLES
Consolidated | |||||||
Current |
Noncurrent | ||||||
September 30, 2017 |
December 31, 2016 |
September 30, 2017 |
December 31, 2016 | ||||
Advances - Fundação CESP |
15,247 |
7,533 |
- |
- | |||
Advances to suppliers |
26,052 |
15,787 |
- |
- | |||
Pledges, funds and restricted deposits |
154,797 |
106,925 |
596,091 |
533,719 | |||
Orders in progress |
213,124 |
203,344 |
- |
- | |||
Services rendered to third parties |
9,376 |
9,385 |
- |
- | |||
Energy pre-purchase agreements |
5,879 |
- |
27,398 |
27,302 | |||
Collection agreements |
700 |
1,273 |
- |
- | |||
Prepaid expenses |
73,780 |
65,668 |
20,524 |
20,942 | |||
GSF renegotiation |
12,476 |
12,722 |
20,253 |
28,935 | |||
Receivables - Eletrobrás |
230,620 |
213,552 |
- |
- | |||
Advances to employees |
32,341 |
15,940 |
- |
- | |||
Leases |
15,792 |
19,281 |
45,900 |
50,541 | |||
Others |
173,526 |
153,764 |
99,619 |
104,815 | |||
(-) Allowance for doubtful accounts (note 6) |
(28,453) |
(27,992) |
- |
- | |||
Total |
935,255 |
797,181 |
809,785 |
766,253 |
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Orders in progress: encompass costs and revenues related to ongoing decommissioning or disposal of intangible assets and the service costs related to expenditure on projects in progress under the Energy Efficiency and Research and Development programs. Upon the closing of the respective projects, the balances are amortized against the respective liability recognized in Other Payables (note 22).
Receivables – Eletrobras: refer to: (i) low-income subsidies amounting to R$ 15,757 (R$ 17,239 at December 31, 2016), (ii) other tariff discounts granted to consumers amounting to R$ 211,186 (R$ 164,396 at December 31, 2016), and (iii) tariff discounts – court injunctions amounting to R$ 3,677 (R$ 31,917 at December 31, 2016) - note 25.3.1.
In the nine months period ended September 30, 2017, the subsidiaries offset the receivables relating to the Eletrobrás account with the payables relating to the Energy Development Account (CDE) (note 19) amounting to R$ 220,946, of which (i) R$ 88,352 based on an injunction obtained in May 2015, and (ii) R$ 132,595 authorized by Order No. 1,576/2016.
( 12 ) INVESTMENTS
Parent company |
Consolidated | ||||||
September 30, 2017 |
December 31, 2016 |
September 30, 2017 |
December 31, 2016 | ||||
Permanent equity interests - equity method |
|||||||
By equity method of the subsidiary |
7,603,458 |
5,811,894 |
1,031,660 |
1,482,533 | |||
Fair value of assets, net |
645,598 |
692,632 |
10,785 |
11,219 | |||
Advances for future capital increases |
- |
1,355,520 |
- |
- | |||
Goodwill |
6,054 |
6,054 |
- |
- | |||
Total |
8,255,110 |
7,866,100 |
1,042,445 |
1,493,753 |
12.1 Permanent equity interests – equity method
The main information on investments in direct permanent equity interests is as follows:
September 30, 2017 |
September 30, 2017 |
December 31, 2016 |
Nine months 2017 |
Nine months 2016 | ||||||||||||||
Investment |
Number of shares (thousand) |
Total assets |
Issued capital |
|
Equity |
Profit or loss for the period |
Share of equity of investees |
|
Share of profit (loss) of investees | |||||||||
CPFL Paulista |
880,653 |
8,844,283 |
923,423 |
1,179,428 |
118,256 |
1,179,428 |
1,063,400 |
118,256 |
235,118 | |||||||||
CPFL Piratininga |
53,096,770 |
3,811,166 |
240,144 |
403,105 |
87,908 |
403,105 |
355,755 |
87,908 |
112,604 | |||||||||
CPFL Santa Cruz |
371,772 |
396,527 |
74,862 |
147,839 |
22,219 |
147,839 |
140,520 |
22,219 |
17,209 | |||||||||
CPFL Leste Paulista |
892,772 |
174,048 |
29,212 |
54,725 |
8,709 |
54,725 |
52,853 |
8,709 |
6,485 | |||||||||
CPFL Sul Paulista |
454,958 |
206,475 |
28,492 |
60,689 |
9,852 |
60,689 |
58,895 |
9,852 |
5,846 | |||||||||
CPFL Jaguari |
209,294 |
140,632 |
20,632 |
31,940 |
3,871 |
31,940 |
30,255 |
3,871 |
6,422 | |||||||||
CPFL Mococa |
117,199 |
116,045 |
16,004 |
34,996 |
6,157 |
34,996 |
33,824 |
6,157 |
5,905 | |||||||||
RGE |
1,019,790 |
4,190,510 |
1,223,350 |
1,682,646 |
91,850 |
1,682,646 |
1,614,320 |
91,850 |
79,132 | |||||||||
CPFL Geração |
205,492,020 |
5,946,536 |
1,043,922 |
2,374,109 |
402,672 |
2,374,109 |
2,158,384 |
402,672 |
259,217 | |||||||||
CPFL Jaguari Geração (*) |
40,108 |
45,065 |
40,108 |
44,913 |
9,209 |
44,913 |
45,099 |
9,209 |
3,498 | |||||||||
CPFL Brasil |
2,999 |
1,281,922 |
2,999 |
71,194 |
48,853 |
71,194 |
109,054 |
48,853 |
71,355 | |||||||||
CPFL Planalto (*) |
630 |
3,584 |
630 |
3,365 |
2,735 |
3,365 |
2,101 |
2,735 |
1,668 | |||||||||
CPFL Serviços |
1,577,706 |
245,359 |
117,968 |
106,285 |
(11,683) |
106,285 |
97,968 |
(11,683) |
(5,328) | |||||||||
CPFL Atende (*) |
13,991 |
25,415 |
13,991 |
18,202 |
4,940 |
18,202 |
17,150 |
4,940 |
4,412 | |||||||||
Nect (*) |
2,059 |
28,791 |
2,059 |
15,275 |
12,804 |
15,275 |
10,295 |
12,804 |
10,264 | |||||||||
CPFL Total (*) |
19,005 |
27,581 |
19,005 |
24,955 |
15,195 |
24,955 |
27,570 |
15,195 |
8,837 | |||||||||
CPFL Jaguariuna (*) |
1,702,676 |
1,644,275 |
1,702,676 |
1,642,405 |
(13,756) |
1,256,564 |
1,256,161 |
(4,507) |
(87) | |||||||||
CPFL Telecom |
86,420 |
2,255 |
86,420 |
(2,100) |
(13,844) |
(2,100) |
(19,302) |
(13,844) |
(19,278) | |||||||||
CPFL Centrais Geradoras (*) |
16,128 |
16,721 |
16,128 |
16,290 |
831 |
16,290 |
15,459 |
831 |
(684) | |||||||||
CPFL Eficiência |
48,164 |
97,953 |
48,164 |
56,635 |
(1,199) |
56,635 |
61,543 |
(1,199) |
4,670 | |||||||||
AUTHI (*) |
2,610 |
28,372 |
2,610 |
20,302 |
17,692 |
20,302 |
16,810 |
17,692 |
17,813 | |||||||||
Subtotal - by subsidiary's equity |
7,601,358 |
7,148,112 |
832,522 |
825,078 | ||||||||||||||
Amortization of fair value adjustment of assets |
- |
- |
(47,035) |
(47,035) | ||||||||||||||
Total |
7,601,358 |
7,148,112 |
785,487 |
778,043 | ||||||||||||||
Investment |
7,603,458 |
5,811,894 |
||||||||||||||||
Advances for future capital increases |
- |
1,355,520 |
||||||||||||||||
Allowance for equity investment losses |
(2,100) |
(19,302) |
(*) number of quotas
Fair value adjustments (value added) of net assets acquired in business combinations are classified in the parent’s statement of profit or loss in the group of Investments. In the parent company’s statement of profit or loss, the amortization of the fair value adjustments (value added) of net assets of R$ 47,035 (R$ 47,035 in the nine months period ended September 30, 2016) is classified in line item “share of profit (loss) of investees”, in conformity with ICPC 09 (R2).
47 of 92
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
The movements, in the parent company, of the balances of investments in subsidiaries are as follows:
Investment |
Investment at December 31, 2016 |
Capital increase /payment of capital |
Share of profit (loss) of investees |
Dividend and Interest on capital |
Advances for future capital increases |
Corporate restructuring |
Investment at September 30, 2017 | |||||||
CPFL Paulista |
1,063,400 |
- |
118,256 |
(2,228) |
- |
- |
1,179,428 | |||||||
CPFL Piratininga |
355,755 |
|
- |
87,908 |
(40,557) |
- |
- |
403,105 | ||||||
CPFL Santa Cruz |
140,520 |
- |
22,219 |
(14,900) |
- |
- |
147,839 | |||||||
CPFL Leste Paulista |
52,853 |
- |
8,709 |
(6,837) |
- |
- |
54,725 | |||||||
CPFL Sul Paulista |
58,895 |
- |
9,852 |
(8,058) |
- |
- |
60,689 | |||||||
CPFL Jaguari |
30,255 |
- |
3,871 |
(2,186) |
- |
- |
31,940 | |||||||
CPFL Mococa |
33,824 |
- |
6,157 |
(4,986) |
- |
- |
34,996 | |||||||
RGE |
1,614,320 |
- |
91,850 |
(23,525) |
- |
- |
1,682,646 | |||||||
CPFL Geração |
2,158,384 |
- |
402,672 |
(186,947) |
- |
- |
2,374,109 | |||||||
CPFL Jaguari Geração |
45,099 |
- |
9,209 |
(9,395) |
- |
- |
44,913 | |||||||
CPFL Brasil |
109,054 |
- |
48,853 |
(81,802) |
- |
(4,911) |
71,194 | |||||||
CPFL Planalto |
2,101 |
- |
2,735 |
(1,471) |
- |
- |
3,365 | |||||||
CPFL Serviços |
97,968 |
76,000 |
(11,683) |
- |
(56,000) |
- |
106,285 | |||||||
CPFL Atende |
17,150 |
- |
4,940 |
(3,888) |
- |
- |
18,202 | |||||||
Nect |
10,295 |
- |
12,804 |
(7,824) |
- |
- |
15,275 | |||||||
CPFL Total |
27,570 |
- |
15,195 |
(17,810) |
- |
- |
24,955 | |||||||
CPFL Jaguariuna |
1,256,161 |
1,299,520 |
(4,507) |
- |
(1,299,520) |
4,911 |
1,256,564 | |||||||
CPFL Telecom |
(19,302) |
31,000 |
(13,844) |
- |
45 |
- |
(2,100) | |||||||
CPFL Centrais Geradoras |
15,459 |
- |
831 |
- |
- |
- |
16,290 | |||||||
CPFL Eficiência |
61,543 |
- |
(1,199) |
(3,708) |
- |
- |
56,635 | |||||||
AUTHI |
16,810 |
- |
17,692 |
(14,200) |
- |
- |
20,302 | |||||||
7,148,112 |
1,406,520 |
832,522 |
(430,321) |
(1,355,475) |
- |
7,601,358 |
In the consolidated, the investment balances refer to interests in joint ventures accounted for using the equity method:
Investments in joint ventures |
September 30, 2017 |
December 31, 2016 |
Nine months 2017 |
Nine months 2016 | ||||
Share of equity |
Share of profit (loss) | |||||||
Baesa |
188,189 |
175,914 |
12,275 |
8,371 | ||||
Enercan |
186,562 |
562,701 |
88,825 |
84,074 | ||||
Chapecoense |
430,485 |
537,170 |
94,282 |
64,972 | ||||
EPASA |
226,424 |
206,749 |
57,762 |
43,962 | ||||
Fair value adjustments of assets, net |
10,785 |
11,219 |
(435) |
(435) | ||||
1,042,445 |
1,493,753 |
252,709 |
200,944 |
12.2 Fair value adjustments and goodwill
Fair value adjustments (value added) refer basically to the right to the concession acquired through business combinations. The goodwill refers basically to acquisitions of investments and is based on projections of future profits.
In the consolidated interim financial information, these amounts are classified as Intangible Assets (note 14).
12.3 Dividends and interest on capital receivable
At September 30, 2017 and December 31, 2016, the Company has the following amounts receivable from the subsidiaries below, relating to dividends and interest on capital:
48 of 92
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Parent company | |||||||||||
Dividends |
Interest on capital |
Total | |||||||||
Subsidiary |
September 30, 2017 |
December 31, 2016 |
September 30, 2017 |
December 31, 2016 |
September 30, 2017 |
December 31, 2016 | |||||
CPFL Piratininga |
52,722 |
72,080 |
- |
- |
52,722 |
72,080 | |||||
CPFL Santa Cruz |
- |
- |
5,503 |
- |
5,503 |
- | |||||
CPFL Leste Paulista |
- |
- |
2,030 |
- |
2,030 |
- | |||||
CPFL Sul Paulista |
14,034 |
8,641 |
4,251 |
1,986 |
18,285 |
10,627 | |||||
CPFL Jaguari |
8,301 |
6,115 |
- |
- |
8,301 |
6,115 | |||||
CPFL Mococa |
2,583 |
- |
2,176 |
- |
4,759 |
- | |||||
RGE |
23,525 |
24,672 |
- |
- |
23,525 |
24,672 | |||||
CPFL Geração |
- |
396,086 |
- |
- |
- |
396,086 | |||||
CPFL Jaguari Geração |
- |
1,664 |
- |
- |
- |
1,664 | |||||
CPFL Brasil |
72,025 |
86,020 |
2,361 |
1,650 |
74,385 |
87,671 | |||||
CPFL Atende |
- |
1,953 |
620 |
554 |
620 |
2,507 | |||||
Nect |
3,324 |
5,600 |
- |
- |
3,324 |
5,600 | |||||
CPFL Eficiência |
12,195 |
9,565 |
17,404 |
16,325 |
29,599 |
25,891 | |||||
Authi |
- |
10,064 |
- |
- |
- |
10,064 | |||||
188,707 |
622,463 |
34,345 |
20,516 |
223,052 |
642,978 |
The consolidated balance includes dividends and interest on capital receivable amounting to R$ 106,237 at September 30, 2017 (R$ 73,328 at December 31, 2016) related basically to joint ventures.
12.4 Noncontrolling interests and joint ventures
The disclosure of interests in subsidiaries, in accordance with IFRS 12 and CPC 45, is as follows:
12.4.1 Movements in noncontrolling interests
CERAN |
CPFL Renováveis |
Paulista Lajeado |
Total | |||||
At December 31, 2016 |
263,719 |
2,060,963 |
77,966 |
2,402,648 | ||||
Equity interest and voting capital |
35.00% |
48.40% |
40.07% |
|||||
Equity attributable to noncontrolling interests |
29,882 |
(12,130) |
6,566 |
24,318 | ||||
Dividends |
- |
(8,722) |
(8,766) |
(17,489) | ||||
Capital increase |
- |
13 |
- |
13 | ||||
Other movements |
- |
- |
(66) |
(66) | ||||
At September 30, 2017 |
293,601 |
2,040,123 |
75,701 |
2,409,425 | ||||
Equity Interests and voting capital |
35.00% |
48.40% |
40.07% |
12.4.2 Summarized financial information on subsidiaries that have noncontrolling interests
The summarized financial information on subsidiaries that have noncontrolling interests at September 30, 2017 and December 31, 2016 and the nine months periods ended September 30, 2017 and 2016 is as follows:
49 of 92
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
September 30, 2017 |
December 31, 2016 | |||||||||||
CERAN |
CPFL Renováveis |
Paulista Lajeado |
CERAN |
CPFL Renováveis |
Paulista Lajeado | |||||||
Current assets |
375,173 |
1,580,011 |
32,349 |
288,538 |
1,398,797 |
39,429 | ||||||
Cash and cash equivalents |
325,686 |
945,248 |
14,694 |
238,241 |
908,982 |
24,688 | ||||||
Noncurrent assets |
890,159 |
11,256,360 |
121,255 |
927,948 |
11,066,086 |
122,991 | ||||||
Current liabilities |
133,199 |
1,901,163 |
38,775 |
121,646 |
1,313,466 |
10,799 | ||||||
Borrowings and debentures |
59,641 |
1,203,215 |
35,153 |
60,162 |
889,981 |
324 | ||||||
Other financial liabilities |
27,255 |
207,037 |
551 |
20,800 |
85,523 |
1,056 | ||||||
Noncurrent liabilities |
293,273 |
6,537,707 |
255 |
341,356 |
6,713,610 |
36,404 | ||||||
Borrowings and debentures |
211,120 |
5,373,901 |
- |
254,732 |
5,517,890 |
36,167 | ||||||
Other financial liabilities |
82,153 |
- |
- |
86,624 |
633 |
- | ||||||
Equity |
838,861 |
4,397,501 |
114,575 |
753,484 |
4,437,807 |
115,217 | ||||||
Equity attributable to owners of the Company |
838,861 |
4,286,866 |
114,575 |
753,484 |
4,324,589 |
115,217 | ||||||
Equity attributable to noncontrolling interests |
- |
110,635 |
- |
- |
113,218 |
- | ||||||
Nine months 2017 |
Nine months 2016 | |||||||||||
CERAN |
CPFL Renováveis |
Paulista Lajeado |
CERAN |
CPFL Renováveis |
Paulista Lajeado | |||||||
Net operating revenue |
237,675 |
1,367,919 |
29,669 |
223,603 |
1,144,731 |
22,840 | ||||||
Operational costs and expenses |
(71,132) |
(500,660) |
(11,420) |
(43,106) |
(421,107) |
(20,958) | ||||||
Depreciation and amortization |
(33,873) |
(461,530) |
(3) |
(33,995) |
(406,679) |
(2) | ||||||
Interest income |
24,407 |
99,623 |
1,750 |
20,459 |
81,576 |
2,071 | ||||||
Interest expense |
(26,901) |
(432,402) |
(1,003) |
(27,936) |
(435,558) |
(1,093) | ||||||
Income tax expense |
(43,547) |
(50,044) |
(1,639) |
(44,732) |
(39,837) |
254 | ||||||
Profit (loss) for the year |
85,376 |
(31,597) |
16,387 |
86,558 |
(117,461) |
6,112 | ||||||
Attributable to owners of the Company |
85,376 |
(37,723) |
16,387 |
86,558 |
(123,705) |
6,112 | ||||||
Attributable to noncontrolling interests |
- |
6,126 |
- |
- |
6,244 |
- |
12.4.3 Joint ventures
The summarized financial information on joint ventures at September 30, 2017 and December 31, 2016 and the nine months periods ended September 30, 2017 and 2016 is as follows:
September 30, 2017 |
December 31, 2016 | |||||||||||||||
Enercan |
Baesa |
Chapecoense |
Epasa |
Enercan |
Baesa |
Chapecoense |
Epasa | |||||||||
Current assets |
275,965 |
100,281 |
340,463 |
312,585 |
405,874 |
54,703 |
577,296 |
257,082 | ||||||||
Cash and cash equivalents |
151,054 |
10,762 |
125,428 |
21,695 |
288,956 |
18,946 |
280,083 |
85,709 | ||||||||
Noncurrent assets |
1,131,530 |
1,071,461 |
2,777,283 |
537,040 |
1,174,869 |
1,117,120 |
2,892,371 |
562,462 | ||||||||
Current liabilities |
434,581 |
134,969 |
356,335 |
182,733 |
196,760 |
116,192 |
391,402 |
172,401 | ||||||||
Borrowings and debentures |
127,943 |
82,363 |
142,894 |
34,222 |
87,560 |
87,032 |
137,753 |
35,555 | ||||||||
Other financial liabilities |
5,140 |
21,884 |
75,885 |
103,522 |
7,848 |
24,119 |
78,372 |
62,762 | ||||||||
Noncurrent liabilities |
590,011 |
284,196 |
1,917,323 |
242,427 |
229,085 |
352,142 |
2,024,989 |
259,559 | ||||||||
Borrowings and debentures |
510,753 |
1,936 |
1,198,154 |
194,877 |
153,020 |
63,196 |
1,292,239 |
218,891 | ||||||||
Other financial liabilities |
25,115 |
265,501 |
715,946 |
18,816 |
26,254 |
276,600 |
730,494 |
28,686 | ||||||||
Equity |
382,902 |
752,578 |
844,089 |
424,465 |
1,154,897 |
703,489 |
1,053,275 |
387,584 | ||||||||
Nine months 2017 |
Nine months 2016 | |||||||||||||||
Enercan |
Baesa |
Chapecoense |
Epasa |
Enercan |
Baesa |
Chapecoense |
Epasa | |||||||||
Net operating revenue |
434,341 |
242,186 |
614,430 |
531,187 |
419,061 |
181,441 |
579,724 |
367,658 | ||||||||
Operational costs and expenses |
(133,737) |
(114,797) |
(122,190) |
(358,318) |
(103,861) |
(50,212) |
(118,546) |
(220,713) | ||||||||
Depreciation and amortization |
(39,580) |
(37,994) |
(95,131) |
(24,426) |
(40,349) |
(38,776) |
(96,030) |
(24,554) | ||||||||
Interest income |
32,116 |
4,067 |
21,012 |
5,176 |
22,477 |
7,695 |
24,695 |
8,460 | ||||||||
Interest expense |
(16,413) |
(11,118) |
(87,137) |
(14,711) |
(27,360) |
(16,233) |
(94,599) |
(17,815) | ||||||||
Income tax and social contribution expenses |
(94,230) |
(26,925) |
(100,714) |
(24,625) |
(88,951) |
(17,387) |
(64,447) |
(21,081) | ||||||||
Profit (loss) for the period |
182,306 |
49,089 |
184,866 |
108,282 |
172,554 |
33,478 |
127,396 |
82,418 | ||||||||
Equity Interests and voting capital |
48.72% |
25.01% |
51.00% |
53.34% |
48.72% |
25.01% |
51.00% |
53.34% |
Even holding more than 50% in Epasa and Chapecoense, the subsidiary CPFL Geração controls these investments jointly with other shareholders. The analysis of the classification of the type of investment is based on the Shareholders' Agreement of each joint venture.
The borrowings from the BNDES obtained by the joint ventures BAESA and Chapecoense establish restrictions on the payment of dividend to subsidiary CPFL Geração above the minimum mandatory dividend of 25% without the prior consent of the BNDES.
12.4.4 Joint operation
Through its wholly-owned subsidiary CPFL Geração, the Company holds part of the assets of the Serra da Mesa hydropower plant, located on the Tocantins River, in Goias State. The concession and the right to operate the hydropower plant are held by Furnas Centrais Elétricas S.A. In order to maintain these assets operating jointly with Furnas (jointly operation), CPFL Geração was assured 51.54% of the installed power of 1,275 MW (657 MW) and the assured energy of mean 671 MW (mean 345.4 MW) until 2028 (information on energy capacity measurements not reviewed by the independent auditors).
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
12.5 Business combination - Acquisition of AES Sul Distribuidora Gaúcha de Energia S.A. (“AES Sul”)
On June 16, 2016, the Company disclosed in a Material Fact that it had entered into an agreement for the acquisition of 100% of the shares of AES Sul Distribuidora Gaúcha de Energia S.A. (“AES Sul”), currently RGE Sul, through its wholly-owned subsidiary CPFL Jaguariúna Participações Ltda., shares until then held by AES Guaíba II Empreendimentos Ltda. (“seller”), indirect wholly-owned subsidiary of The AES Corporation.
On August 5, 2016, the transaction was approved by CADE (Brazilian antitrust agency) and, on September 9, 2016, authorized by ANEEL (Brazilian Electricity Regulatory Agency).
The acquisition was completed on October 31, 2016 (“acquisition date”), after all the conditions precedent of the transaction were met, date in which the control of RGE Sul was taken over by CPFL Jaguariúna, the ownership of the shares was transferred and the payment was made. This acquisition resulted in a business combination in accordance with CPC 15 (R1) – “Combinação de Negócios” and IFRS 3 (R) – Business Combination since CPFL Jaguariúna started holding the control of RGE Sul.
The consideration initially transferred was R$ 1,698,455, paid in cash, in a lump sum, at the acquisition date. This consideration was subsequently adjusted for changes in working capital and net debt of RGE Sul, occurred in the period between December 31, 2015 and the acquisition date, as per the amendment to the agreement. The final value of the consideration, considering the price adjustment, was R$1,591,839.
RGE Sul is a publicly traded company engaged in providing public electricity distribution services in any forms, and these activities are regulated by ANEEL, linked to the Ministry of Mines and Energy. Additionally, RGE Sul is authorized to participate in programs that aim at other forms of energy, technologies and services, including operation of activities derived directly or indirectly from the use of assets, rights and technologies owned by it.
Its administrative headquarters are located at Avenida São Borja, 2801, Bairro Fazenda São Borja, São Leopoldo, State of Rio Grande do Sul.
RGE Sul holds the concession for operation of its activities for a thirty-year period, up to November 5, 2027, its concession area comprises 118 municipalities of the State of Rio Grande do Sul, located between the metropolitan region of Porto Alegre and the borders with Uruguay and Argentina, serving approximately 1.3 million consumers (information not reviewed by the independent auditors).
The acquisition of RGE Sul is in line with the Company’s growth strategy, especially in the distribution segment, with potential gains of scale for its operations. The Company also expects to obtain important synergies relating to the concession area of RGE Sul since another important distributor of the Group (RGE) holds concession in the state of Rio Grande do Sul.
Additional information to the acquisition of RGE Sul
a) Consideration
RGE Sul | |||
Consideration paid, net |
October 31, 2016 | ||
Consideration directly transferred to prior shareholders |
1,698,455 | ||
Reimbursements due to adjustments related to agreement clauses |
(106,616) | ||
1,591,839 |
b) Assets acquired and liabilities assumed at the acquisition date
The total amount paid on the transaction was allocated at the acquisition date to the assets acquired and liabilities assumed at fair values, including intangible assets relating to the concession right. Accordingly, as the total amount paid was allocated to assets identified and liabilities assumed, no residual value was allocated as goodwill on this transaction.
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
The allocation of the amount paid for assets and liabilities acquired was made with amounts provisionally calculated for the financial statements as at December 31, 2016, based on analyses conducted by Management itself at the time these financial statements were prepared. The final fair values presented were pending confirmation until the completion of the economic and financial appraisal report prepared by independent appraiser, completed on October 30, 2017.
As a consequence, certain reclassifications were made to the amounts as at December 31, 2016, relating to the (i) decrease in the fair value of the concession infrastructure’s intangible asset; (ii) completion of the fair value allocation and alignment of the criteria on the provision for tax, civil and labor risks; (iii) increase in the amount of trade receivables; (iv) decrease in the concession’s financial asset; (v) decrease in the intangible asset relating to the operation right, as a consequence of the revision of the assumptions used to determine the value of tangible and intangible assets; and (vi) recording of deferred income tax and social contribution balances on certain adjustments. These reclassifications are within the measurement period, pursuant to CPC 15 / IFRS 3, and were considered immaterial for purposes of restatement of the 2016 financial statements.
The allocation of the purchase price paid to the fair values of the assets and liabilities acquired is as follows:
October 31, 2016 |
October 31, 2016 | |||
Consolidated |
Consolidated | |||
(preliminary) |
(final) | |||
Current assets |
||||
Cash and cash equivalents |
95,164 |
95,164 | ||
Consumers, concessionaries and licensees |
580,945 |
580,945 | ||
Other current assets |
89,548 |
89,548 | ||
Noncurrent assets |
||||
Consumers, concessionaries and licensees |
54,111 |
79,501 | ||
Deferred tax assets |
204,176 |
310,741 | ||
Concession financial asset |
876,281 |
863,943 | ||
Intangible assets - Distribution infrastructure |
1,456,472 |
1,444,401 | ||
Intangible acquired in this business combination |
413,796 |
398,739 | ||
Other noncurrent assets |
147,784 |
155,508 | ||
Current liabilities |
||||
Trade payables |
(479,031) |
(479,031) | ||
Debentures and borrowings |
(24,672) |
(24,672) | ||
Taxes, fees and contributions |
(65,198) |
(65,198) | ||
Sector financial liability |
(29,246) |
(29,246) | ||
Regulatory charges |
(60,787) |
(60,787) | ||
Other current liabilities |
(114,552) |
(114,552) | ||
Noncurrent liabilities |
||||
Debentures and borrowings |
(1,131,949) |
(1,131,949) | ||
Sector financial liability |
(64,939) |
(64,939) | ||
Provision for tax, civil and labor risks |
(223,383) |
(323,595) | ||
Other noncurrent liabilities |
(132,682) |
(132,682) | ||
Net assets acquired |
1,591,839 |
1,591,839 |
Goodwill arising on acquisition |
||
Consideration paid, net |
1,591,839 | |
(+) Non controlling shareholders interest |
- | |
(-) Fair value of identifiable net assets acquired |
1,591,839 | |
Goodwill |
- |
The fair values presented above were finalized are in accordance with the economic and financial appraisal report prepared by the independent expert.
The fair values of the concession’s financial asset and the distribution infrastructure’s intangible asset were calculated based on the independent appraiser’s report, considering the same assumptions adopted at the time of preparation of the report for Periodic Tariff Review purposes (Regulatory Remuneration Basis - “BRR”).
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
c) Contingent consideration
The share purchase agreement does not contain any clauses relating to the contingent consideration to be paid to the seller.
d) Indemnification assets
The agreement for purchase of 100% of the shares of RGE Sul establishes that CPFL Jaguariúna may be indemnified, up to the limit of 15% of the total amount paid, if any losses are incurred in the future, contingent upon the compliance with specific clauses, derived from matters originated in the seller or in any of its subsidiaries established in the share purchase agreement. There are also specific clauses for two lawsuits (regulatory and environmental) in which the seller undertakes to indemnify fully CPFL Jaguariúna in the event of cash outflows relating to these lawsuits, and CPFL Jaguariúna undertakes to pass on to the seller any cash flows relating to these lawsuits that may be received in the future, in order to neutralize any effect on these two matters in particular.
The recognized final fair value of the indemnification asset is R$ 41,974, relating to the environmental lawsuit (see item “e” below). This indemnification asset was recognized in the same amount of the fair value attributed to this contingent liability.
No indemnification asset was recognized for the regulatory lawsuit for which there is a specific indemnification clause since no contingent liability relating to this lawsuit was recognized at the acquisition date.
e) Contingent liabilities recognized
We present below the final contingent liabilities recognized in the amount of R$150,065:
RGE Sul | ||
October 31, 2016 | ||
Labor lawsuits (i) |
11,429 | |
Civil lawsuits (i) |
83,575 | |
Regulatory lawsuits (i) |
5,850 | |
Environmental lawsuits (ii) |
41,974 | |
Tax lawsuits (i) |
7,236 | |
150,065 | ||
Provisions recognized in the subsidiary |
173,530 | |
Provisions for tax, civil and labor risks |
323,595 |
i. These amounts represent the fair values of the labor, civil, regulatory and tax lawsuits for which the likelihood of loss attributed at the acquisition date is “possible” or “remote”. Considering that the settlement of these lawsuits depends on third parties, either at the judicial or administrative level, it is not possible to estimate a schedule for the occurrence of any cash outflows associated with these contingent liabilities. No indemnification asset was recognized for these contingent liabilities.
ii. Refers to the fair value attributed to a class action lawsuit for which the likelihood of loss attributed by Management, together with its legal counsel, is “possible” at the acquisition date. This class action lawsuit seeks compensation for environmental damages occurred in a woodworking and pole manufacture unit that was operated, between 1997 and 2005, by RGE Sul together with its associate at that time AES Florestal. Until 1997, this unit was operated by the former concessionaire, Companhia Estadual de Energia Elétrica (CEEE). An indemnification asset in the same amount was recognized at the acquisition date.
f) Receivables acquired
The fair value of the receivables acquired is R$ 660,446. The gross contractual amount of the receivables is R$ 703,672 and based on the independent expert best estimates R$ 43,226 are not expected to be received and represent therefore the portion that is expected to represent an impairment loss.
g) Net cash outflow on the acquisition
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Consideration paid, net |
1,591,839 | |
(-) Cash and cash equivalent balances acquired |
(95,164) | |
Cash and cash equivalents transferred, net |
1,496,675 |
h) Financial information on the acquiree
i. On the net operating revenue and profit of the subsidiary acquired included in the consolidated financial statements in 2017:
Considering that the acquisition date was October 31, 2016, the consolidated interim financial information as at September 30, 2017 comprises fully the revenue and the result of RGE Sul for the period. In 2016, there is no amount recognized in the consolidated interim financial information relating to the activities of RGE Sul.
ii. Consolidated financial information on the net operating revenue and profit for 2016 had the acquisition ocurred on January 1, 2016:
Operational revenue, net |
Profit or loss, net | ||
Jan. to Sep. 2016 |
Jan. to Sep. 2016 | ||
CPFL Energia consolidated |
13,600,307 |
741,854 | |
Pro-forma adjustments (*) |
2,110,992 |
(51,036) | |
Total |
15,711,299 |
690,818 |
(*) The pro forma adjustments in the net operating revenue consider the addition of the subsidiary’s net operating revenue for the period in which it was not a subsidiary and, consequently, was not consolidated by the Company. The pro forma adjustments to profit for the period consider: (i) addition of the subsidiary’s result for the period in which it was not consolidated by the Company; (ii) inclusion of the amortization of the intangible asset acquired on the business combination and the amortization of the fair value of the distribution infrastructure’s intangible asset, had the acquisition occurred on January 1, 2016.
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 13 ) PROPERTY, PLANT AND EQUIPMENT
Consolidated | |||||||||||||||
Land |
Reservoirs, dams and water mains |
Buildings, construction and improvements |
Machinery and equipment |
Vehicles |
Furniture and fittings |
In progress |
Total | ||||||||
At December 31, 2016 |
176,145 |
1,394,162 |
1,153,220 |
6,655,391 |
76,217 |
7,562 |
250,302 |
9,712,998 | |||||||
Historical cost |
206,330 |
2,060,191 |
1,652,934 |
9,066,408 |
106,920 |
21,507 |
250,302 |
13,364,592 | |||||||
Accumulated depreciation |
(30,185) |
(666,028) |
(499,714) |
(2,411,017) |
(30,704) |
(13,945) |
- |
(3,651,594) | |||||||
Additions |
- |
- |
- |
722 |
- |
- |
637,084 |
637,806 | |||||||
Disposals |
(22) |
- |
- |
(16,104) |
(915) |
(44) |
(5,878) |
(22,963) | |||||||
Transfers |
2,905 |
361 |
107,367 |
568,029 |
17,585 |
645 |
(696,892) |
- | |||||||
Transfers from/to other assets - cost |
- |
9,039 |
(808) |
(66,973) |
(139) |
28 |
11,067 |
(47,786) | |||||||
Depreciation |
(6,060) |
(59,464) |
(49,775) |
(317,732) |
(12,659) |
(1,093) |
- |
(446,783) | |||||||
Write-off of depreciation |
2 |
- |
- |
3,631 |
512 |
- |
- |
4,145 | |||||||
Transfers from/to other assets - depreciation |
6 |
(4,047) |
1,466 |
11,067 |
1 |
36 |
- |
8,529 | |||||||
Business combination |
- |
- |
- |
- |
(4,800) |
- |
- |
(4,800) | |||||||
At September 30, 2017 |
172,976 |
1,340,050 |
1,211,470 |
6,838,031 |
75,803 |
7,136 |
195,683 |
9,841,148 | |||||||
Historical cost |
209,213 |
2,069,589 |
1,759,493 |
9,552,014 |
118,146 |
22,137 |
195,683 |
13,926,275 | |||||||
Accumulated depreciation |
(36,237) |
(729,539) |
(548,023) |
(2,713,983) |
(42,344) |
(15,000) |
- |
(4,085,127) | |||||||
Average depreciation rate |
3.86% |
3.85% |
3.81% |
4.46% |
13.06% |
8.78% |
The balance of construction in progress, in the consolidated balances, refers mainly to works in progress of operating and/or under development subsidiaries, especially for the projects of CPFL Renováveis, which has construction in progress of R$ 152,027 at September 30, 2017 (R$ 182,181 at December 31, 2016).
In conformity with CPC 20 (R1) and IAS 23, the interest on borrowings taken by subsidiaries to finance the works is capitalized during the construction phase. In the consolidated balances, in the nine months period ended September 30, 2017, R$ 27,755 were capitalized at the rate of 9.99% p.a. (R$ 43,568, at the rate of 11.53% p.a., in the nine months period ended September 30, 2016) (note 28).
In the consolidated balances, the depreciation amounts are recognized in the statement of profit or loss in line item “Depreciation and amortization” (note 26).
The balances disclosed in the "Business Combinations" line refer to the complementary amounts related to the acquisition of RGE Sul, which final recognition occurred on September 30, 2017, according to note 12.5.
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 14 ) INTANGIBLE ASSETS
Consolidated | |||||||||||||
Goodwill |
Concession right | ||||||||||||
Acquired in business combinations |
Distribution infrastructure - operational |
Distribution infrastructure - in progress |
Public utilities |
Other intangible assets |
Total | ||||||||
At December 31, 2016 |
6,115 |
4,466,516 |
5,550,502 |
666,008 |
27,324 |
59,147 |
10,775,613 | ||||||
Historical cost |
6,152 |
7,602,941 |
11,987,109 |
666,008 |
35,840 |
183,138 |
20,481,188 | ||||||
Accumulated Amortization |
(37) |
(3,136,425) |
(6,436,607) |
- |
(8,516) |
(123,990) |
(9,705,576) | ||||||
Additions |
- |
- |
- |
1,275,607 |
- |
4,965 |
1,280,572 | ||||||
Amortization |
- |
(215,526) |
(475,411) |
- |
(1,065) |
(7,229) |
(699,230) | ||||||
Transfer - intangible assets |
- |
- |
684,011 |
(684,011) |
- |
- |
- | ||||||
Transfer - financial asset |
- |
- |
(5,071) |
(804,873) |
- |
- |
(809,944) | ||||||
Disposal and transfer - other assets |
- |
- |
(71,142) |
48,060 |
- |
1,558 |
(21,525) | ||||||
Write-off of assets |
- |
(16,245) |
- |
- |
- |
- |
(16,245) | ||||||
Business combination |
- |
(15,057) |
(7,108) |
- |
- |
- |
(22,165) | ||||||
At September 30, 2017 |
6,115 |
4,219,689 |
5,675,782 |
500,791 |
26,259 |
58,441 |
10,487,077 | ||||||
Historical cost |
6,152 |
7,571,639 |
12,455,595 |
500,791 |
35,840 |
189,123 |
20,759,140 | ||||||
Accumulated Amortization |
(37) |
(3,351,951) |
(6,779,813) |
- |
(9,581) |
(130,681) |
(10,272,063) |
In conformity with CPC 20 (R1) and IAS 23, the interest on borrowings taken by subsidiaries is capitalized for qualifying intangible assets. In the consolidated, for the nine months period ended September 30, 2017, R$ 14,460 were capitalized at a rate of 8.27% p.a. (R$ 8,864 at a rate of 7.59% p.a. n the nine months period ended September 30, 2016).
In the consolidated, the amortization of intangible assets is recognized in the statement of profit or loss in the following line items: (i) “depreciation and amortization” for amortization of distribution infrastructure intangible assets, use of public asset and other intangible assets; and (ii) “amortization of concession intangible asset” for amortization of the intangible asset acquired in business combination (note 26).
The balances disclosed in the "Business Combinations" line refer to the complementary amounts related to the acquisition of RGE Sul, which final recognition occurred on September 30, 2017, according to note 12.5.
14.1 Intangible asset acquired in business combinations
The breakdown of the intangible asset related to the right to operate the concessions acquired in business combinations is as follows:
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Consolidated | |||||||||||
September 30, 2017 |
December 31, 2016 |
Annual amortization rate | |||||||||
Historic cost |
Accumulated amortization |
Net value |
Net value |
2017 |
2016 | ||||||
Intangible asset - acquired in business combinations |
|||||||||||
Intangible asset acquired, not merged |
|||||||||||
Parent company |
|||||||||||
CPFL Paulista |
304,861 |
(204,507) |
100,355 |
107,843 |
3.28% |
3.28% | |||||
CPFL Piratininga |
39,065 |
(24,717) |
14,348 |
15,319 |
3.31% |
3.31% | |||||
RGE |
3,150 |
(1,793) |
1,357 |
1,457 |
4.24% |
4.24% | |||||
CPFL Geração |
54,555 |
(35,027) |
19,528 |
20,912 |
3.38% |
3.38% | |||||
CPFL Jaguari Geração |
7,896 |
(3,784) |
4,112 |
4,314 |
3.41% |
3.41% | |||||
409,527 |
(269,828) |
139,699 |
149,845 |
||||||||
Subsidiaries |
|||||||||||
CPFL Renováveis |
3,700,848 |
(838,371) |
2,862,477 |
2,995,028 |
4.78% |
5.39% | |||||
RGE Sul |
85,999 |
(7,168) |
78,831 |
99,524 |
9.09% |
9.09% | |||||
RGE |
618 |
(178) |
440 |
473 |
7.06% |
7.06% | |||||
3,787,465 |
(845,717) |
2,941,748 |
3,095,025 |
||||||||
Subtotal |
4,196,992 |
(1,115,545) |
3,081,446 |
3,244,869 |
|||||||
Intangible asset acquired and merged – Deductible |
|||||||||||
Subsidiaries |
|||||||||||
RGE |
1,120,266 |
(880,062) |
240,204 |
257,924 |
2.11% |
2.11% | |||||
RGE Sul |
312,741 |
(26,080) |
286,661 |
307,982 |
9.09% |
9.09% | |||||
CPFL Geração |
426,450 |
(320,972) |
105,478 |
112,953 |
2.34% |
2.34% | |||||
Subtotal |
1,859,457 |
(1,227,114) |
632,343 |
678,859 |
|||||||
Intangible asset acquired and merged – Reassessed |
|||||||||||
Parent company |
|||||||||||
CPFL Paulista |
1,074,026 |
(746,614) |
327,412 |
351,565 |
3.00% |
3.00% | |||||
CPFL Piratininga |
115,762 |
(73,243) |
42,518 |
45,395 |
3.31% |
3.31% | |||||
RGE |
310,128 |
(181,172) |
128,956 |
138,469 |
4.09% |
4.09% | |||||
CPFL Jaguari Geração |
15,275 |
(8,262) |
7,013 |
7,358 |
3.01% |
3.01% | |||||
Subtotal |
1,515,190 |
(1,009,292) |
505,899 |
542,787 |
|||||||
Total |
7,571,639 |
(3,351,951) |
4,219,689 |
4,466,516 |
( 15 ) TRADE PAYABLES
|
Consolidated | |||
September 30, 2017 |
December 31, 2016 | |||
Current |
||||
System service charges |
73 |
59,935 | ||
Energy purchased |
3,318,251 |
1,868,950 | ||
Electricity network usage charges |
218,283 |
121,884 | ||
Materials and services |
468,960 |
545,468 | ||
Free energy |
142,493 |
131,893 | ||
Total |
4,148,059 |
2,728,130 | ||
Noncurrent |
||||
Energy purchased |
126,394 |
129,148 | ||
Materials and services |
- |
633 | ||
Total |
126,394 |
129,781 |
57 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 16 ) BORROWINGS
Consolidated |
Consolidated | |||||||||||||||||
September 30, 2017 |
December 31, 2016 | |||||||||||||||||
Current |
Noncurrent |
Noncurrent |
|
Total |
Current |
Noncurrent |
Current |
Noncurrent |
|
Total | ||||||||
Interest |
Principal |
Interest |
Principal |
|||||||||||||||
Measured at cost |
||||||||||||||||||
Local currency |
||||||||||||||||||
Investment |
16,427 |
745,081 |
4,330,205 |
5,091,713 |
17,827 |
842,015 |
- |
4,606,227 |
5,466,069 | |||||||||
Rental assets |
13 |
1,178 |
3,091 |
4,283 |
38 |
1,034 |
- |
3,955 |
5,028 | |||||||||
Financial Institutions |
190,246 |
632,249 |
1,002,656 |
1,825,152 |
89,387 |
255,355 |
144,709 |
1,517,251 |
2,006,702 | |||||||||
Others |
38 |
22,826 |
30,990 |
53,854 |
50 |
59,756 |
- |
42,370 |
102,176 | |||||||||
Total at cost |
206,724 |
1,401,335 |
5,366,943 |
6,975,002 |
107,303 |
1,158,159 |
144,709 |
6,169,803 |
7,579,974 | |||||||||
Measured at fair value |
||||||||||||||||||
Foreign currency |
||||||||||||||||||
Financial Institutions |
16,509 |
2,143,305 |
2,646,635 |
4,806,449 |
22,062 |
595,101 |
- |
4,922,463 |
5,539,626 | |||||||||
Mark to market |
- |
4,235 |
19,727 |
23,963 |
- |
(1,764) |
- |
(35,651) |
(37,415) | |||||||||
Total at fair value |
16,509 |
2,147,540 |
2,666,363 |
4,830,412 |
22,062 |
593,337 |
- |
4,886,812 |
5,502,211 | |||||||||
Borrowing costs (*) |
- |
(4,814) |
(27,047) |
(31,861) |
- |
(5,213) |
- |
(32,930) |
(38,143) | |||||||||
Total |
223,233 |
3,544,062 |
8,006,258 |
11,773,552 |
129,364 |
1,746,284 |
144,709 |
11,023,685 |
13,044,041 |
58 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated |
||||||||||
Measured at amortized cost |
September |
December 31, 2016 |
Annual interest |
Amortization |
Collateral | |||||
Local currency |
||||||||||
Investment |
||||||||||
CPFL Paulista |
||||||||||
FINEM V |
11,501 |
37,078 |
TJLP + 2.12% to 3.3% (c) |
72 monthly installments from February 2012 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
2,328 |
3,638 |
Fixed rate 8% (c) |
90 monthly installments from August 2011 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
25,167 |
30,835 |
Fixed rate 5.5% (b) |
96 monthly installments from February 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
113,403 |
149,984 |
TJLP + 2.06% to 3.08% (e) (f) |
72 monthly installments from January 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
7,777 |
8,907 |
Fixed rate 2.5% (a) |
114 monthly installments from June 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
142,681 |
163,404 |
Fixed rate 2.5% (a) |
96 monthly installments from December 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
51,810 |
57,798 |
Fixed rate 6% (b) |
96 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
68,023 |
73,435 |
SELIC + 2.62% to 2.66% (h) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
114,602 |
132,622 |
TJLP + 2.12% to 2.66% (c) (d) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINAME |
19,015 |
25,356 |
Fixed rate 4.5% |
96 monthly installments from January 2012 |
CPFL Energia guarantee | |||||
CPFL Piratininga |
||||||||||
FINEM IV |
6,195 |
19,970 |
TJLP + 2.12% to 3.3% (c) |
72 monthly installments from February 2012 |
CPFL Energia guarantee and receivables | |||||
FINEM IV |
751 |
1,173 |
Fixed rate 8% (c) |
90 monthly installments from August 2011 |
CPFL Energia guarantee and receivables | |||||
FINEM IV |
13,088 |
16,035 |
Fixed rate 5.5% (b) |
96 monthly installments from February 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
33,145 |
43,836 |
TJLP + 2.06% to 3.08% (e) (f) |
72 monthly installments from January 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
2,043 |
2,339 |
Fixed rate 2.5% (a) |
114 monthly installments from June 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
35,507 |
40,664 |
Fixed rate 2.5% (a) |
96 monthly installments from December 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
38,553 |
41,620 |
SELIC + 2.62% to 2.66% (h) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
56,840 |
65,778 |
TJLP + 2.12% to 2.66% (c) (d) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
25,277 |
28,198 |
Fixed rate 6% (b) |
96 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINAME |
9,016 |
12,023 |
Fixed rate 4.5% |
96 monthly installments from January 2012 |
CPFL Energia guarantee | |||||
RGE Sul |
||||||||||
Finep |
4,723 |
7,757 |
Fixed rate 5% |
81 monthly installments from September 2013 |
Bank guarantee | |||||
Finep |
6,054 |
7,562 |
TJLP |
73 monthly installments from May 2016 |
Bank guarantee | |||||
RGE |
||||||||||
FINEM V |
6,962 |
22,444 |
TJLP + 2.12% to 3.3% (c) |
72 monthly installments from February 2012 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
9,654 |
11,828 |
Fixed rate 5.5% (b) |
96 monthly installments from February 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
60,584 |
80,126 |
TJLP + 2.06% to 3.08% (e) (f) |
72 monthly installments from January 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
823 |
942 |
Fixed rate 2.5% (a) |
114 monthly installments from June 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
52,465 |
60,085 |
Fixed rate 2.5% (a) |
96 monthly installments from December 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
35,356 |
39,442 |
Fixed rate 6% (b) |
96 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
60,451 |
65,261 |
SELIC + 2.62% to 2.66% (h) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
70,334 |
81,394 |
TJLP + 2.12% to 2.66% (d) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINAME |
4,525 |
6,033 |
Fixed rate 4.5% |
96 monthly installments from January 2012 |
CPFL Energia guarantee | |||||
FINAME |
123 |
168 |
Fixed rate 10.0% |
90 monthly installments from May 2012 |
Liens on assets | |||||
FINAME |
476 |
579 |
Fixed rate 10.0% |
66 monthly installments from October 2015 |
Liens on assets | |||||
CPFL Santa Cruz |
||||||||||
FINEM |
8,183 |
9,094 |
Fixed rate 6% |
111 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
3,009 |
3,381 |
SELIC + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
5,033 |
6,062 |
TJLP + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINAME |
1,775 |
- |
TJLP + 3.29% |
36 monthly installments from April 2019 |
CPFL Energia guarantee | |||||
FINAME |
5 |
- |
SELIC + 3.63% |
36 monthly installments from April 2019 |
CPFL Energia guarantee | |||||
CPFL Leste Paulista |
||||||||||
FINEM |
3,057 |
3,397 |
Fixed rate 6% |
111 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
1,103 |
1,239 |
SELIC + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
1,847 |
2,224 |
TJLP + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINAME |
1,319 |
- |
TJLP + 3.29% |
36 monthly installments from December 2018 |
CPFL Energia guarantee | |||||
FINAME |
7 |
- |
SELIC + 3.63% |
36 monthly installments from December 2018 |
CPFL Energia guarantee | |||||
FINAME |
58 |
- |
TJLP + 3.39% |
120 monthly installments from June 2019 |
CPFL Energia guarantee | |||||
CPFL Sul Paulista |
||||||||||
FINEM |
2,171 |
2,412 |
Fixed rate 6% |
111 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
1,541 |
1,731 |
SELIC + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
2,592 |
3,122 |
TJLP + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINAME |
2,609 |
- |
TJLP + 3.29% |
36 monthly installments from February 2019 |
CPFL Energia guarantee | |||||
CPFL Jaguari |
||||||||||
CCB - Santander |
1,272 |
1,464 |
TJLP + 3.1% |
96 monthly installments from June 2014 |
CPFL Energia guarantee | |||||
CCB - Santander |
480 |
572 |
UMBNDES + 2.1% |
96 monthly installments from June 2014 |
CPFL Energia guarantee | |||||
FINEM |
2,180 |
2,422 |
Fixed rate 6% |
111 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
1,145 |
1,287 |
SELIC + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
1,927 |
2,321 |
TJLP + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINAME |
381 |
- |
TJLP + 3.29% |
36 monthly installments from February 2019 |
CPFL Energia guarantee | |||||
FINAME |
16 |
- |
TJLP + 3.39% |
120 monthly installments from July 2019 |
CPFL Energia guarantee | |||||
CPFL Mococa |
||||||||||
CCB - Santander |
1,636 |
1,883 |
TJLP + 3.1% |
96 monthly installments from June 2014 |
CPFL Energia guarantee | |||||
CCB - Santander |
617 |
736 |
UMBNDES + 2.1% |
96 monthly installments from June 2014 |
CPFL Energia guarantee | |||||
CCB - Santander |
1,222 |
1,413 |
UMBNDES +1.99% |
96 monthly installments from October 2015 |
CPFL Energia guarantee | |||||
CCB - Santander |
3,657 |
4,081 |
TJLP + 2.99% (f) |
96 monthly installments from October 2015 |
CPFL Energia guarantee | |||||
FINAME |
106 |
- |
TJLP + 3.29% |
36 monthly installments from April 2019 |
CPFL Energia guarantee | |||||
FINAME |
41 |
- |
TJLP + 3.39% |
120 monthly installments from May 2019 |
CPFL Energia guarantee | |||||
CPFL Serviços |
||||||||||
FINAME |
1,139 |
1,297 |
Fixed rate 2.5% to 5.5% |
96 monthly installments from August 2014 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
268 |
313 |
Fixed rate 6% |
72 monthly installments from April 2016 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
521 |
668 |
Fixed rate 7.7% to 10% |
90 monthly installments from November 2012 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
9,973 |
11,292 |
Fixed rate 2.5% to 5.5% |
114 monthly installments from February 2013 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
37 |
47 |
TJLP + 4.2% |
90 monthly installments from November 2012 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
1,941 |
2,249 |
Fixed rate 6% |
90 monthly installments from October 2014 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
91 |
101 |
Fixed rate 6% |
96 monthly installments from July 2016 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
5,221 |
5,768 |
Fixed rate 6% |
114 monthly installments from June 2015 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
576 |
762 |
TJLP + 2.2% to 3.2% (c) |
56 monthly installments from July 2015 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
3,262 |
3,870 |
Fixed rate 9.5% to 10% (c) |
66 monthly installments from October 2015 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
1,354 |
1,589 |
Fixed rate 6% to 10% (e) |
66 monthly installments from April 2016 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
5,568 |
5,832 |
TJLP + 3.50% (e) |
48 monthly installments from July 2017 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
1,265 |
2,511 |
SELIC + 3.86% to 3.90% (k) |
48 monthly installments from July 2017 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
1,314 |
- |
SELIC + 3.86% |
48 monthly installments from August 2019 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
1,259 |
1,147 |
SELIC + 3.74% (d) |
36 monthly installments from November 2018 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
578 |
495 |
TJLP + 3.40% (h) |
36 monthly installments from November 2018 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
2,531 |
- |
SELIC + 3.58% to 3.72% |
36 monthly installments from January 2019 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
8,774 |
- |
TJLP + 3.25% to 3.38% |
36 monthly installments from January 2019 |
CPFL Energia guarantee and liens on equipment |
59 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
CPFL Transmissão Piracicaba |
||||||||||
FINAME |
14,923 |
16,871 |
Fixed rate 3.0% |
96 monthly installments from July 2015 |
CPFL Energia guarantee | |||||
CPFL Telecom |
||||||||||
FINAME |
- |
7,448 |
Fixed rate 6.0% (b) |
60 monthly installments from December 2016 |
CPFL Energia guarantee | |||||
FINEM |
- |
7,849 |
SELIC + 3.12% (h) |
60 monthly installments from December 2016 |
CPFL Energia guarantee | |||||
FINEM |
- |
21,342 |
TJLP + 2.12% to 3.12% (c) |
60 monthly installments from December 2016 |
CPFL Energia guarantee | |||||
FINEM |
- |
470 |
TJLP (l) |
60 monthly installments from December 2016 |
CPFL Energia guarantee | |||||
CERAN |
||||||||||
BNDES |
230,630 |
266,484 |
TJLP + 3.69 to 5% |
208 monthly installments from December 2005 |
Pledge of shares, credit and concession rights and revenues | |||||
BNDES |
40,132 |
48,409 |
UMBNDES + 5% (1) |
208 monthly installments from February 2006 |
Pledge of shares, credit and concession rights and revenues | |||||
CPFL Renováveis |
||||||||||
FINEM I |
239,868 |
262,224 |
TJLP + 1.95% |
168 monthly installments from October 2009 |
(i) Liens of equipment; | |||||
FINEM II |
19,774 |
22,210 |
TJLP + 1.90%. |
144 monthly installments from June 2011 |
(i) Liens of equipment; | |||||
FINEM III |
469,557 |
495,912 |
TJLP + 1.72% |
192 monthly installments from May 2013 |
(i) Liens of equipment; | |||||
FINEM V |
72,230 |
80,362 |
TJLP + 2.8% and 3.4% |
143 monthly installments from December 2011 |
(i) Liens of equipment; | |||||
FINEM VI |
70,915 |
74,737 |
TJLP + 2.05% |
173 to 192 monthly installments from October 2013 and April 2015 |
(i) Liens of receivables; | |||||
FINEM VII |
124,093 |
138,474 |
TJLP + 1.92 % |
156 monthly installments from October 2010 |
(i) Liens of equipment; | |||||
FINEM IX |
19,685 |
25,195 |
TJLP + 2.15% |
120 monthly installments from May 2010 |
(i) Mortgage of rural property; | |||||
FINEM X |
- |
230 |
TJLP |
84 monthly installments from October 2010 |
(i) Liens of equipment; | |||||
FINEM XI |
97,709 |
105,670 |
TJLP + 1.87% to 1.9% |
108 to 168 monthly installments from January 2012 and January 2013 |
(i) Liens of equipment; | |||||
FINEM XII |
302,828 |
317,289 |
TJLP + 2.18% |
192 monthly installments from July 2014 |
(i) Liens of equipment; | |||||
FINEM XIII |
303,456 |
318,257 |
TJLP + 2.02% to 2.18% |
192 monthly installments from November 2014 |
(i) Pledge of equipment; | |||||
FINEM XV |
24,223 |
27,305 |
TJLP + 3.44% |
139 monthly installments from September 2011 |
(i) Pledge of shares of SPE; | |||||
FINEM XVI |
4,857 |
6,418 |
Fixed rate 5.50% |
101 monthly installments from September 2011 |
(i) Pledge of shares of SPE; | |||||
FINEM XVII |
436,542 |
460,426 |
TJLP + 2.18% |
192 monthly installments from January 2013 |
(i) Liens of equipment; | |||||
FINEM XVIII |
10,222 |
13,763 |
Fixed rate 4.5% |
102 monthly installments from June 2011 |
(i) Liens of equipment; | |||||
FINEM XIX |
28,080 |
29,559 |
TJLP + 2.02% |
192 monthly installments from January 2014 |
(i) Liens of equipment; | |||||
FINEM XX |
39,066 |
44,650 |
Fixed rate 2.5% |
108 monthly installments from January 2014 |
(i) Liens of equipment; | |||||
FINEM XXI |
38,266 |
40,281 |
TJLP + 2.02% |
192 monthly installments from January 2014 |
(i) Liens of equipment; | |||||
FINEM XXII |
34,369 |
39,281 |
Fixed rate 2.5% |
108 monthly installments from January 2014 |
(i) Liens of equipment; | |||||
FINEM XXIII |
1,297 |
1,729 |
Fixed rate 4.5% |
102 monthly installments from June 2011 |
(i) Liens of equipment; | |||||
FINEM XXIV |
89,355 |
109,580 |
Fixed rate 5.5% |
102 to 108 monthly installments from January 2012 |
(i) Liens of equipment; | |||||
FINEM XXV |
83,952 |
87,492 |
TJLP + 2.18% |
192 monthly installments from July 2016 |
(i) Pledge of equipment; | |||||
FINEM XXVI |
690,014 |
525,011 |
TJLP + 2.75% |
192 monthly installments from July 2017 |
(i) Pledge of equipment; | |||||
FINEM XXVII |
68,774 |
70,532 |
TJLP + 2,02% |
162 monthly installments from November 2016 |
(i) Pledge of shares of SPE; | |||||
FINAME I |
2,505 |
2,857 |
Fixed rate 2.5% |
96 monthly installments from February 2015 |
(i) Liens of equipment; |
60 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
FINEP I |
1,025 |
1,397 |
Fixed rate 3.5% |
61 monthly installments from October 2014 |
Guarantee letter. | |||||
FINEP II |
10,144 |
10,445 |
TJLP - 1.0% |
85 monthly installments from June 2017 |
Guarantee letter. | |||||
FINEP III |
4,375 |
5,232 |
Fixed rate 8% |
73 monthly installments from July 2015 |
Guarantee letter. | |||||
BNB I |
95,111 |
100,323 |
Fixed rate 9.5% to 10% and compliance bonus of 15% |
168 monthly installments from January 2009 |
(i) Liens of equipment; | |||||
BNB II |
153,125 |
158,364 |
Fixed rate 10% and compliance bonus of 15% to 25% |
222 monthly installments from May 2010 |
(i) Liens of equipment; | |||||
BNB III |
27,610 |
29,020 |
Fixed rate 9.5% and compliance bonus of 25% |
228 monthly installments from July 2009 |
(i) Liens of equipment; | |||||
NIB |
59,096 |
67,872 |
IGPM + 8.63% |
50 quarterly installments from June 2011 |
(i) Liens of equipment; | |||||
Rental assets |
||||||||||
CPFL Eficiência |
||||||||||
FINAME |
2,441 |
2,923 |
Fixed rate 4.5% to 8.7% |
96 monthly installments from March 2012 |
CPFL Energia guarantee | |||||
FINAME |
86 |
99 |
Fixed rate 6% |
72 monthly installments from October 2016 |
CPFL Energia guarantee | |||||
FINAME |
187 |
234 |
TJLP + 2.70% |
48 monthly installments from August 2016 |
CPFL Energia guarantee | |||||
FINAME |
187 |
219 |
SELIC + 2.70% |
48 monthly installments from August 2016 |
CPFL Energia guarantee | |||||
FINAME |
109 |
121 |
Fixed rate 9.5% |
48 monthly installments from October 2016 |
CPFL Energia guarantee | |||||
FINAME |
556 |
678 |
Fixed rate 9.5% (e) |
48 monthly installments from February 2017 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
717 |
753 |
TJLP + 3.50% (e) |
48 monthly installments from August 2017 |
CPFL Energia guarantee and liens on equipment | |||||
Financial institutions |
||||||||||
CPFL Paulista |
||||||||||
Banco do Brasil - Working capital |
309,432 |
380,403 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee | |||||
CPFL Piratininga |
||||||||||
Banco do Brasil - Working capital |
- |
66,951 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee | |||||
CPFL Santa Cruz |
||||||||||
Banco do Brasil - Working capital |
40,845 |
50,213 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
6,578 |
6,925 |
CDI + 0.27% (f) |
12 semiannual installments from June 2015 |
CPFL Energia guarantee | |||||
CPFL Leste Paulista |
||||||||||
Banco IBM - Working capital |
4,449 |
5,405 |
100.0% of CDI |
14 semiannual installments from December 2012 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
19,481 |
20,955 |
CDI + 0.1% |
12 semiannual installments from October 2014 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
14,873 |
15,658 |
CDI + 0.27% |
12 semiannual installments from March 2015 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
5,070 |
6,993 |
CDI + 1.33% (f) |
12 semiannual installments from January 2016 |
CPFL Energia guarantee | |||||
CPFL Sul Paulista |
||||||||||
Banco do Brasil - Working capital |
25,992 |
31,954 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
6,496 |
7,888 |
CDI + 0.27% to 1.33 (f) |
12 semiannual installments from June 2015 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
5,533 |
6,784 |
CDI + 1.27% (g) |
Semiannual installments from February 2017 |
CPFL Energia guarantee | |||||
CPFL Jaguari |
||||||||||
Banco do Brasil - Working capital |
3,589 |
4,413 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
9,302 |
10,726 |
100.0% of CDI |
14 semiannual installments from December 2012 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
10,502 |
11,297 |
CDI + 0.1% |
12 semiannual installments from October 2014 |
CPFL Energia guarantee | |||||
CPFL Mococa |
||||||||||
Banco do Brasil - Working capital |
23,517 |
28,911 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
3,019 |
3,481 |
100.0% of CDI |
14 semiannual installments from December 2012 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
12,630 |
13,296 |
CDI + 0.27% |
12 semiannual installments from March 2015 |
CPFL Energia guarantee | |||||
CPFL Serviços |
||||||||||
Banco IBM - Working capital |
2,511 |
3,473 |
CDI + 0.10% |
11 semiannual installments from June 2013 |
CPFL Energia guarantee | |||||
Promissory note |
46,095 |
- |
104% of CDI |
1 installment in June 2018 |
CPFL Energia guarantee | |||||
CPFL Geração |
||||||||||
Banco do Brasil - Working capital |
618,361 |
641,316 |
109.5% of CDI |
1 installment in March 2019 |
CPFL Energia guarantee | |||||
CPFL Telecom |
||||||||||
Banco IBM - Working capital |
- |
31,449 |
CDI + 0.18% |
12 semiannual installments from August 2014 |
CPFL Energia guarantee | |||||
CPFL Transmissão Morro Agudo |
||||||||||
Santander |
- |
5,031 |
CDI + 1.60% (k) |
1 installment in March 2017 |
CPFL Energia guarantee | |||||
CPFL Renováveis |
||||||||||
Bradesco |
210,312 |
250,363 |
CDI + 0.5% |
8 annual installments from June 2013 |
No collateral | |||||
Safra |
193,710 |
208,547 |
105% of CDI |
14 semiannual installments from August 2016 |
No collateral | |||||
CCB - BBM |
45,532 |
44,171 |
CDI+3.40% |
1 installment in March 2018 |
No collateral | |||||
CCB - ABC |
45,712 |
44,217 |
CDI+3.80% |
1 installment in December 2017 |
No collateral | |||||
Promissory note - ABC |
99,338 |
105,883 |
CDI+3.80% |
4 semiannual installments from February 2017 |
No collateral | |||||
Promissory note - BBM |
62,272 |
- |
CDI+1.39% |
1 installment in June 2018 |
CPFL Renováveis guarantee | |||||
Others |
||||||||||
Eletrobrás |
||||||||||
CPFL Paulista |
2,547 |
2,960 |
RGR + 6% to 6.5% |
120 monthly installments from January 2013 |
Receivables and promissory notes | |||||
RGE |
4,454 |
5,851 |
RGR + 6% |
120 monthly installments from May 2008 |
Receivables and promissory notes | |||||
RGE Sul |
20,691 |
25,946 |
RGR + 6% |
120 monthly installments from July 2007 |
Receivables and promissory notes | |||||
CPFL Santa Cruz |
230 |
508 |
RGR + 6% |
120 monthly installments from May 2008 |
Receivables and promissory notes | |||||
CPFL Leste Paulista |
176 |
338 |
RGR + 6% |
120 monthly installments from February 2008 |
Receivables and promissory notes | |||||
CPFL Sul Paulista |
123 |
303 |
RGR + 6% |
120 monthly installments from August 2007 |
Receivables and promissory notes | |||||
CPFL Jaguari |
- |
9 |
RGR + 6% |
120 monthly installments from June 2007 |
Receivables and promissory notes | |||||
CPFL Mococa |
82 |
122 |
RGR + 6% |
120 monthly installments from January 2008 |
Receivables and promissory notes | |||||
Others |
25,550 |
66,141 |
||||||||
Subtotal local currency |
6,975,002 |
|
7,579,974 |
|||||||
Foreign currency |
||||||||||
Measured at fair value |
||||||||||
Financial institutions |
||||||||||
CPFL Paulista |
||||||||||
Bank of America Merrill Lynch |
320,566 |
327,503 |
US$+Libor 3 months+1.35% (2) (f) |
1 installment in October 2018 |
CPFL Energia guarantee and promissory notes | |||||
Bank of America Merrill Lynch |
143,479 |
146,703 |
US$+Libor 3 months+1.70% (3) |
1 installment in September 2018 |
CPFL Energia guarantee and promissory notes | |||||
Bank of Tokyo-Mitsubishi |
159,744 |
163,279 |
US$ + Libor 3 months + 0.88% (2) (g) |
1 installment in February 2020 |
CPFL Energia guarantee and promissory notes | |||||
Bank of Tokyo-Mitsubishi |
119,650 |
163,106 |
US$+Libor 3 months+0.80% (2) (f) |
4 semiannual installments from September 2017 |
CPFL Energia guarantee and promissory notes | |||||
BNP Paribas |
75,345 |
68,663 |
Euro + 1.6350% (2) |
1 installment in January 2018 |
CPFL Energia guarantee and promissory notes | |||||
HSBC |
276,794 |
282,808 |
US$ + Libor 3 months + 1.30% (2) |
1 installment in January 2018 |
CPFL Energia guarantee and promissory notes | |||||
J.P. Morgan |
- |
130,522 |
US$ + 2.28% to 2.32% (2) |
1 installment in December 2017 |
CPFL Energia guarantee and promissory notes | |||||
J.P. Morgan |
- |
115,382 |
US$ + 2.36% to 2.39% (2) |
1 installment in January 2018 |
CPFL Energia guarantee and promissory notes | |||||
J.P. Morgan |
80,163 |
82,544 |
US$ + 2.74% (2) |
1 installment in January 2019 |
CPFL Energia guarantee and promissory notes | |||||
J.P. Morgan |
- |
49,311 |
US$ + 2.2% (2) |
1 installment in February 2018 |
CPFL Energia guarantee and promissory notes | |||||
Bank of America Merrill Lynch |
479,756 |
490,334 |
US$ + Libor 3 months + 1.40% (2) |
1 installment in February 2018 |
CPFL Energia guarantee and promissory notes | |||||
Mizuho Bank |
239,090 |
244,484 |
US$+Libor 3 months+1.55% (2) (f) |
3 semiannual installments from March 2018 |
CPFL Energia guarantee and promissory notes | |||||
Syndicated transaction (**) - Bank of America Merrill Lynch, Citibank, HSBC and EDC-Export Development Canada |
213,374 |
218,104 |
US$ + Libor 3 months + 2.7% (3) |
5 semiannual installments from May 2019 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Piratininga |
||||||||||
BNP Paribas |
207,198 |
188,822 |
Euro + 1.6350% (2) |
1 installment in January 2018 |
CPFL Energia guarantee and promissory notes | |||||
Citibank |
200,112 |
204,486 |
US$ + Libor 3 months + 1.41% (2) |
2 annual installments from January 2019 |
CPFL Energia guarantee and promissory notes | |||||
Citibank |
159,650 |
163,225 |
US$ + Libor 3 months + 1.35% (3) |
1 installment in March 2019 |
CPFL Energia guarantee and promissory notes | |||||
Scotiabank |
- |
54,235 |
US$ + 2.08% (2) |
1 installment in August 2017 |
CPFL Energia guarantee and promissory notes | |||||
Sumitomo |
160,236 |
163,712 |
US$ + Libor 3 months + 1.35% (2) (f) |
1 installment in April 2018 |
CPFL Energia guarantee and promissory notes | |||||
Syndicated transaction (**) - Bank of America Merrill Lynch, Citibank, HSBC and EDC-Export Development Canada |
213,374 |
218,104 |
US$ + Libor 3 months + 2.7% (3) |
5 semiannual installments from May 2019 |
CPFL Energia guarantee and promissory notes | |||||
RGE |
||||||||||
Bank of Tokyo-Mitsubishi |
57,599 |
58,852 |
US$ + Libor 3 months + 0.82%(2) |
1 installment in April 2018 |
CPFL Energia guarantee and promissory notes | |||||
Bank of Tokyo-Mitsubishi |
261,934 |
267,740 |
US$ + Libor 3 months + 0.83%(2) |
1 installment in May 2018 |
CPFL Energia guarantee and promissory notes | |||||
HSBC |
43,548 |
44,496 |
US$ + Libor 3 months + 1.30% (2) |
1 installment in October 2017 |
CPFL Energia guarantee and promissory notes | |||||
J.P. Morgan |
- |
199,826 |
US$ + 2.78% (2) |
1 installment in February 2018 |
CPFL Energia guarantee and promissory notes | |||||
Syndicated transaction (**) - Bank of America Merrill Lynch, Citibank, HSBC and EDC-Export Development Canada |
213,374 |
218,104 |
US$ + Libor 3 months + 2.7% (3) |
5 semiannual installments from May 2019 |
CPFL Energia guarantee and promissory notes |
61 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
CPFL Santa Cruz |
||||||||||
Scotiabank |
16,053 |
16,556 |
US$ + 3.37% (3) (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Sul Paulista |
||||||||||
Scotiabank |
16,053 |
16,556 |
US$ + 3.37% (3) (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Leste Paulista |
||||||||||
Scotiabank |
16,053 |
16,556 |
US$ + 3.37% (3) (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Jaguari |
||||||||||
Scotiabank |
16,053 |
16,556 |
US$ + 3.37% (3) (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Geração |
||||||||||
HSBC |
- |
326,159 |
US$+Libor 3 months + 1.30% (2) |
1 installment in March 2017 |
CPFL Energia guarantee and promissory notes | |||||
CCB-China Construction Bank |
95,786 |
97,946 |
US$+Libor 3 months + 1.60% + 1.4% fee (3) |
1 installment in June 2019 |
CPFL Energia guarantee and promissory notes | |||||
Scotiabank |
113,979 |
117,550 |
US$ + 3.37% (3) (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes | |||||
Citibank |
382,743 |
391,380 |
US$+Libor 3 months + 1.41% (2) (f) |
3 annual installments from September 2018 |
CPFL Energia guarantee and promissory notes | |||||
CCB China |
31,903 |
32,624 |
US$ + 3.37% (3) (g) |
1 installment in September 2019 |
CPFL Energia guarantee and promissory notes | |||||
Scotiabank |
160,780 |
163,125 |
US$ + 3.13% (f) |
1 installment in December 2019 |
CPFL Energia guarantee | |||||
Paulista Lajeado |
||||||||||
Banco Itaú |
34,701 |
35,771 |
US$ + 3.196% (3) |
1 installment in March 2018 |
CPFL Energia guarantee and promissory notes | |||||
CPFL Brasil |
||||||||||
Scotiabank |
43,205 |
44,501 |
US$ + 2.779% (2) |
1 installment in August 2018 |
CPFL Energia guarantee and promissory notes | |||||
Scotiabank |
11,227 |
- |
US$ + 2.779% (2) |
1 installment in September 2020 |
CPFL Energia guarantee and promissory notes | |||||
Scotiabank |
242,930 |
- |
US$ + 2.779% (2) |
1 installment in September 2020 |
CPFL Energia guarantee and promissory notes | |||||
Mark to market |
23,963 |
(37,415) |
||||||||
Total in foreign currency - fair value |
4,830,412 |
5,502,211 |
||||||||
Borrowing costs (*) |
(31,861) |
(38,143) |
||||||||
Total - Consolidated |
11,773,552 |
13,044,041 |
||||||||
The subsidiaries hold swaps converting the operating cost of currency variation to interest rate variation in reais, corresponding to: |
||||||||||
(1) 143.85% of CDI |
(3) 109.1% to 119% of CDI |
|||||||||
(2) 99% to 109% of CDI |
||||||||||
Effective rate: |
||||||||||
(a) 30% to 40% of CDI |
(e) 80.1% to 90% of CDI |
|||||||||
(b) 40.1% to 50% of CDI |
(f) 100.1% to 110% of CDI |
|||||||||
(c) 60.1% to 70% of CDI |
(g) 110.1% to 120% of CDI |
|||||||||
(d) 70.1% to 80% of CDI |
(h) 120.1% to 130% of CDI |
(*) In accordance with CPC 38/IAS 39, this refers to borrowing costs directly attributable to the issuance of the respective debts.
(**) Syndicated transaction – borrowings in foreign currency, having as counterpart a group of financial institutions.
As segregated in the tables above, in conformity with CPCs 38 and 39 and IASs 32 and 39, the Group classified their debts as (i) other financial liabilities (or measured at amortized cost), and (ii) financial liabilities measured at fair value through profit or loss.
The objective of the classification as financial liabilities of borrowings measured at fair value is to compare the effects of the recognition of income and expenses derived from marking to market of derivatives, debt-related derivatives, in order to obtain more relevant and consistent accounting information. At September 30, 2017, the balance of the borrowings measured at fair value was R$ 4,830,412 (R$ 5,502,211 at December 31, 2016).
Changes in the fair values of these borrowings are recognized in finance income/cost of the Group. At September 30, 2017, the accumulated losses obtained on the marking to market of the borrowings were R$ 23,963 (accumulated gains of R$ 37,415 at December 31, 2016), which offset by the gains obtained on the marking to market of derivative financial instruments of R$ 34,334 (R$ 24,504 at December 31, 2016) contracted to hedge against changes in foreign exchange rates (note 32), resulted in a total net gain of R$ 10,371 (R$ 61,919 at December 31, 2016).
The maturities of the principal of borrowings recorded in noncurrent liabilities are scheduled as follows:
Maturity |
Consolidated | |
From October 1st, 2018 |
513,541 | |
2019 |
2,771,537 | |
2020 |
1,620,724 | |
2021 |
712,155 | |
2022 |
510,261 | |
2023 to 2027 |
1,320,764 | |
2028 to 2032 |
515,886 | |
2033 to 2037 |
21,664 | |
Subtotal |
7,986,531 | |
Mark to market |
19,727 | |
Total |
8,006,258 |
62 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Main additions in the period:
R$ thousand |
|
|||||||||||
Company |
Bank / Credit issue |
Total approved |
Released in 2017 |
Released net of fundraising costs |
Interest |
Utilization | ||||||
Local currency |
||||||||||||
Investment |
||||||||||||
CPFL Santa Cruz, CPFL Leste Paulista, CPFL Jaguari, CPFL Sul Paulista e CPFL Mococa |
FINAME (a) |
6,467 |
6,467 |
6,467 |
Quarterly |
Subsidiary's investment plan | ||||||
CPFL Serviços |
FINAME (a) |
11,205 |
11,205 |
11,205 |
Quarterly |
Acquisition of machinery and equipment | ||||||
CPFL Serviços |
Promissory note |
45,000 |
45,000 |
45,000 |
Bullet |
Working capital | ||||||
CPFL Renováveis |
FINEM XXVI |
764,109 |
145,670 |
142,494 |
Monthly |
Subsidiary's investment plan | ||||||
CPFL Renováveis |
FINEM XVII |
639,045 |
677 |
677 |
Monthly |
Subsidiary's investment plan | ||||||
CPFL Renováveis |
FINEM XII |
99,344 |
800 |
800 |
Monthly |
Subsidiary's investment plan | ||||||
CPFL Renováveis |
FINEM XXVII |
87,184 |
1,699 |
1,699 |
Monthly |
Subsidiary's investment plan | ||||||
CPFL Renováveis |
Promissory note - BBM (a) |
62,000 |
62,000 |
61,833 |
Bullet |
Subsidiary's investment plan | ||||||
1,714,354 |
273,518 |
270,175 |
||||||||||
Foreign currency |
||||||||||||
CPFL Brasil |
Law 4131 - Scotiabank |
249,989 |
249,989 |
249,989 |
Semiannually |
Working capital |
(a) There is no restrictive financial covenant.
Prepayment
CPFL Paulista - In the nine-month period ended September 30, 2017, the subsidiary settled borrowings of R$ 250,738 from J.P. Morgan bank, which original maturities would be in December 2017 and February 2018.
RGE - In the nine-month period ended September 30, 2017, the subsidiary settled borrowings of R$ 200,672 from J.P. Morgan bank, which original maturities would be in February 2018.
CPFL Piratininga - In the nine-month period ended September 30, 2017, the subdisiary settled borrowings of R$ 68,952 from Banco do Brasil bank, which original maturities would be in July 2017 and July 2018.
Restrictive covenants
The borrowing agreements are subject to certain restrictive covenants, including covenants that require the Company and/or its subsidiaries to maintain certain financial ratios within pre-established parameters. Moreover, these agreements contain restrictive non-financial covenants, which are complied with as per the last measurement period.
CPFL Brasil – Law 4,131 - compliance with the following financial ratios, calculated semiannually: (i) Net debt divided by EBITDA – maximum of 3.75 and (ii) EBITDA divided by Finance Income (expenses) – minimum of 2.25.
For purposes of determining covenants, the definition of EBITDA at the Company takes into consideration mainly the consolidation of subsidiaries, associates and joint ventures based on the Company’s direct or indirect interests in those entities (for both EBITDA and assets and liabilities).
Borrowings for other disbursement of amounts occurred in 2017, as well as other debts, have restrictive covenants related to financial indicators, which details of the restrictive covenants are presented in the financial statements at December 31, 2016.
Specifically for borrowings from BNDES related to (i) FINEM of the subsidiaries CPFL Paulista, CPFL Piratininga and RGE and (ii) Finem III, VI, IX, XII, XIII, XV, XVI, XIX, XX, XXI, XXII, XXIV , XXV, XXVI and XXVII of the subsidiary CPFL Renováveis and its subsidiaries, the respective contracts were added in 2017 with the inclusion of new financial covenants, additional to those previously existing, which must be verified annually in the financial statements of its parent companies:
CPFL Paulista, CPFL Piratininga and RGE:
(i) Compliance, by the subsidiaries, with the financial ratios already disclosed in the notes to the consolidated financial statements for the year ended December 31, 2016;
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(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
(ii) Compliance, by CPFL Energia, with the following financial ratios:
· Net debt divided by EBITDA – maximum of 3.75;
· Equity / (Equity + Net banking debts) – minumum of 0.28.
(iii) Compliance, by State Grid Brazil Power (SGBP), with the following financial ratios:
· Equity / Total Assets – minimum of 0.30 (excluding IFRIC 12 / OCPC 01 (R1) effects).
CPFL Renováveis and subsidiaries:
(i) Compliance, by CPFL Renováveis and its subsidiaries, with the financial ratios already disclosed in the notes to the consolidated financial statements for the year ended December 31, 2016;
(ii) Compliance, by CPFL Energia, with the following financial ratios:
· Net debt divided by EBITDA – maximum of 3.75;
· Equity / (Equity + Net banking debts) – minumum of 0.28.
(iii) Compliance, by State Grid Brazil Power (SGBP), with the following financial ratios:
· Equity / Total Assets – minimum of 0.30.
The Management of the Group monitors these ratios systematically and constantly to ensure that the covenants are complied with. In the opinion of the Group’s Management, all restrictive covenants and covenants whose indicators are measured semiannually and annually have been properly complied with, as per the last measurement period, that is, June 30, 2017 and December 31, 2016, respectively.
64 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 17 ) DEBENTURES
Consolidated | |||||||||||||||||
September 30, 2017 |
December 31, 2016 | ||||||||||||||||
Current interest |
Current |
Noncurrent |
Total |
Current interest |
Current |
Noncurrent |
Total | ||||||||||
CPFL Paulista |
|||||||||||||||||
6th Issue |
Single series |
6,402 |
- |
264,000 |
270,402 |
47,079 |
198,000 |
462,000 |
707,079 | ||||||||
7th Issue |
Single series |
7,062 |
126,250 |
378,750 |
512,062 |
28,913 |
- |
505,000 |
533,913 | ||||||||
13,464 |
126,250 |
642,750 |
782,464 |
75,992 |
198,000 |
967,000 |
1,240,992 | ||||||||||
CPFL Piratininga |
|||||||||||||||||
6th Issue |
Single series |
1,067 |
- |
44,000 |
45,067 |
7,846 |
33,000 |
77,000 |
117,846 | ||||||||
7th Issue |
Single series |
3,286 |
58,750 |
176,250 |
238,286 |
13,455 |
- |
235,000 |
248,455 | ||||||||
8th issue |
2nd series |
2,861 |
- |
246,000 |
248,861 |
- |
- |
- |
- | ||||||||
8th issue |
1st series |
398 |
- |
60,559 |
60,957 |
- |
- |
- |
- | ||||||||
7,612 |
58,750 |
526,809 |
593,171 |
21,301 |
33,000 |
312,000 |
366,301 | ||||||||||
RGE |
|||||||||||||||||
6th Issue |
Single series |
4,850 |
- |
200,000 |
204,850 |
35,666 |
150,000 |
350,000 |
535,666 | ||||||||
7th Issue |
Single series |
2,377 |
42,500 |
127,500 |
172,377 |
9,733 |
- |
170,000 |
179,733 | ||||||||
8th issue |
2nd series |
2,914 |
- |
250,000 |
252,914 |
- |
- |
- |
- | ||||||||
8th issue |
1st series |
872 |
- |
131,347 |
132,219 |
- |
- |
- |
- | ||||||||
11,013 |
42,500 |
|
708,847 |
|
762,360 |
45,399 |
150,000 |
|
520,000 |
|
715,399 | ||||||
CPFL Santa Cruz |
|||||||||||||||||
1st Issue |
Single series |
1,058 |
32,500 |
- |
33,558 |
550 |
32,500 |
32,500 |
65,550 | ||||||||
RGE SUL |
|||||||||||||||||
4th Issue |
Single series |
53,851 |
- |
1,100,000 |
1,153,851 |
32,058 |
- |
1,100,000 |
1,132,058 | ||||||||
CPFL Brasil |
|||||||||||||||||
3rd Issue |
Single series |
19,582 |
- |
400,000 |
419,582 |
11,657 |
- |
400,000 |
411,657 | ||||||||
CPFL Geração |
|||||||||||||||||
5th Issue |
Single series |
19,251 |
546,000 |
- |
565,251 |
12,969 |
546,000 |
546,000 |
1,104,969 | ||||||||
6th Issue |
Single series |
4,623 |
153,318 |
306,682 |
464,623 |
23,228 |
- |
460,000 |
483,228 | ||||||||
7th Issue |
Single series |
29,565 |
- |
635,000 |
664,565 |
16,379 |
- |
635,000 |
651,379 | ||||||||
8th Issue |
Single series |
2,133 |
- |
87,146 |
89,279 |
3,369 |
- |
85,520 |
88,889 | ||||||||
9th Issue |
Single series |
2,632 |
- |
51,190 |
53,822 |
524 |
- |
50,278 |
50,802 | ||||||||
58,205 |
699,318 |
1,080,018 |
1,837,542 |
56,470 |
546,000 |
1,776,798 |
2,379,268 | ||||||||||
Parent company |
|||||||||||||||||
5th Issue |
Single series |
66 |
- |
186,000 |
186,066 |
18,069 |
- |
620,000 |
638,069 | ||||||||
CPFL Renováveis |
|||||||||||||||||
1st Issue - SIIF (*) |
1st to 12th series |
2,056 |
44,196 |
464,068 |
510,320 |
762 |
41,938 |
461,314 |
504,014 | ||||||||
1st Issue - PCH Holding 2 |
Single series |
346 |
8,700 |
123,391 |
132,437 |
644 |
8,700 |
132,091 |
141,435 | ||||||||
1st Issue - DESA |
Single series |
- |
- |
- |
- |
425 |
17,500 |
- |
17,925 | ||||||||
2nd Issue - DESA |
Single series |
37,712 |
21,665 |
43,336 |
102,713 |
29,153 |
- |
65,000 |
94,153 | ||||||||
1st Issue - Pedra Cheirosa I |
Single series |
279 |
64,653 |
- |
64,932 |
6,675 |
52,200 |
- |
58,875 | ||||||||
1st Issue - Pedra Cheirosa II |
Single series |
255 |
59,203 |
- |
59,458 |
6,114 |
47,800 |
- |
53,914 | ||||||||
1st Issue - Boa Vista II |
Single series |
- |
- |
- |
- |
6,395 |
50,000 |
- |
56,395 | ||||||||
1st Issue - Renováveis (***) |
Single series |
13,000 |
64,500 |
258,000 |
335,500 |
6,160 |
43,000 |
322,500 |
371,660 | ||||||||
2nd Issue - Renováveis |
Single series |
96 |
60,000 |
210,000 |
270,096 |
11,486 |
30,000 |
270,000 |
311,486 | ||||||||
3rd Issue - Renováveis |
Single series |
11,357 |
98,658 |
197,343 |
307,358 |
4,444 |
- |
296,000 |
300,444 | ||||||||
4th Issue - Renováveis |
1st series |
79 |
- |
200,000 |
200,079 |
7,925 |
- |
200,000 |
207,925 | ||||||||
5th Issue - Renováveis |
Single series |
7,268 |
6,000 |
94,000 |
107,268 |
- |
- |
- |
- | ||||||||
7th Issue - Renováveis |
Single series |
2,954 |
- |
251,211 |
254,165 |
- |
- |
- |
- | ||||||||
75,402 |
427,575 |
1,841,349 |
2,344,326 |
80,183 |
291,138 |
1,746,905 |
2,118,226 | ||||||||||
Borrowing costs (**) |
- |
(16,570) |
(48,954) |
(65,524) |
(7,346) |
(8,545) |
(51,684) |
(67,575) | |||||||||
240,252 |
1,370,323 |
6,436,820 |
8,047,395 |
334,333 |
1,242,092 |
7,423,518 |
8,999,945 |
65 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Quantity issued |
Annual remuneration |
Annual effective rate |
Amortization conditions |
Collateral | ||||||
CPFL Paulista |
||||||||||
6th Issue |
Single series |
660 |
CDI + 0.8% (2) |
CDI + 0.87% |
3 annual installments from July 2017 |
CPFL Energia guarantee | ||||
7th Issue |
Single series |
50,500 |
CDI + 0.83% (3) |
CDI + 0.89% |
4 annual installments from February 2018 |
CPFL Energia guarantee | ||||
CPFL Piratininga |
||||||||||
6th Issue |
Single series |
110 |
CDI + 0.8% (2) |
CDI + 0.91% |
3 annual installments from July 2017 |
CPFL Energia guarantee | ||||
7th Issue |
Single series |
23,500 |
CDI + 0.83% (2) |
CDI + 0.89% |
4 annual installments from February 2018 |
CPFL Energia guarantee | ||||
8th issue |
2nd series |
246,000 |
109.5% CDI |
109.5% CDI |
2 installments in February 2021 and February 2022 |
CPFL Energia guarantee | ||||
8th issue |
1st series |
60,000 |
IPCA + 5.2901% |
IPCA + 5.2901% |
2 installments in February 2021 and February 2022 |
CPFL Energia guarantee | ||||
RGE |
||||||||||
6th Issue |
Single series |
500 |
CDI + 0.8% (2) |
CDI + 0.88% |
3 annual installments from July 2017 |
CPFL Energia guarantee | ||||
7th Issue |
Single series |
17,000 |
CDI + 0.83% (3) |
CDI + 0.88% |
4 annual installments from February 2018 |
CPFL Energia guarantee | ||||
8th issue |
2nd series |
250,000 |
111.25% CDI |
111.25% CDI |
2 installments in February 2021 and February 2022 |
CPFL Energia guarantee | ||||
8th issue |
1st series |
130,000 |
IPCA+ 5.3473% |
IPCA+ 5.3473% |
2 installments in February 2021 and February 2022 |
CPFL Energia guarantee | ||||
CPFL Santa Cruz |
||||||||||
1st Issue |
Single series |
650 |
CDI + 1.4% |
CDI + 1.52% |
2 annual instalments from June 2017 |
CPFL Energia guarantee | ||||
RGE SUL |
||||||||||
4th Issue |
Single series |
110,000 |
114.50% of CDI |
114.5% of CDI |
2 annual installments from October 2019 |
CPFL Energia guarantee | ||||
CPFL Brasil |
||||||||||
3rd Issue |
Single series |
40,000 |
114.5% of CDI |
114.5% of CDI |
2 annual installments from October 2019 |
CPFL Energia guarantee | ||||
CPFL Geração |
||||||||||
5th Issue |
Single series |
10,920 |
CDI + 1.4% |
CDI + 1.48% |
2 annual instalments from June 2017 |
CPFL Energia guarantee | ||||
6th Issue |
Single series |
46,000 |
CDI + 0.75% (1) |
CDI + 0.75% |
3 annual instalments from August 2018 |
CPFL Energia guarantee | ||||
7th Issue |
Single series |
63,500 |
CDI + 1.06% |
CDI + 1.11% |
1 installment in April 2019 |
CPFL Energia guarantee | ||||
8th Issue |
Single series |
1 |
IPCA + 5.86% (1) |
103.33% of CDI |
1 installment in April 2019 |
CPFL Energia guarantee | ||||
9th Issue |
Single series |
50,000 |
IPCA+ 5.48% |
101.74% of CDI |
1 installment in October 2021 |
CPFL Energia guarantee | ||||
Parent company |
||||||||||
5th Issue |
Single series |
62,000 |
114.5% of CDI |
120.65% of CDI |
2 annual installments from October 2019 |
No guarantee | ||||
CPFL Renováveis |
||||||||||
1st Issue - SIIF |
1st to 12th series |
432,299,666 |
TJLP + 1% |
TJLP + 1% + 0.6% |
39 semi-annual installments from 2009 |
Liens | ||||
1st Issue - PCH Holding 2 |
Single series |
1,581 |
CDI + 1.6% |
CDI + 1.8% |
9 annual installments from June 2015 |
CPFL Renováveis guarantee | ||||
1st Issue - DESA |
Single series |
20 |
CDI + 1.75% |
CDI + 1.75% |
3 semi-annual installments from May de 2016 |
Unsecured | ||||
2nd Issue - DESA |
Single series |
65 |
CDI + 1.34% |
CDI + 1.34% |
3 semi-annual installments from April de 2017 |
Unsecured | ||||
1st Issue - Pedra Cheirosa I |
Single series |
5,220 |
CDI + 2.85% |
CDI + 2.85% |
1 installment in September 2017 |
CPFL Renováveis guarantee | ||||
1st Issue - Pedra Cheirosa II |
Single series |
4,780 |
CDI + 2.85% |
CDI + 2.85% |
1 installment in September 2017 |
CPFL Renováveis guarantee | ||||
1st Issue - Boa Vista II |
Single series |
5,000 |
CDI + 2.85% |
CDI + 2.85% |
1 installment in September 2017 |
CPFL Renováveis guarantee | ||||
1st Issue - Renováveis |
Single series |
43,000 |
CDI + 1.7% |
CDI + 1.82% |
Annual installments from May 2015 |
Assignment of dividends of BVP and PCH Holding | ||||
2nd Issue - Renováveis |
Single series |
300,000 |
114.0% of CDI |
115.43% of CDI |
5 annual instalments from June 2017 |
Unsecured | ||||
3rd Issue - Renováveis |
Single series |
29,600 |
117.25% of CDI |
120.64% of CDI |
1 installment in May 2020 |
Unsecured | ||||
4th Issue - Renováveis |
1st series |
20,000 |
126% CDI |
134.22% CDI |
3 annual installments from September 2019 |
CPFL Energia guarantee | ||||
5th Issue - Renováveis |
Single series |
100,000,000 |
129.5% of CDI |
138.06% of CDI |
12 semi-annual installments from June 2018 |
Liens of quotas from Ludesa | ||||
7th Issue - Renováveis |
Single series |
250,000 |
IPCA + 5.62% |
IPCA + 6.03% |
1 installment in June 2022 |
CPFL Energia guarantee | ||||
The subsidiaries hold swaps that convert the prefixed component of interest on the operation to interest rate variation in reais, corresponding to: |
||||||||||
(1) 100.15% to 106.9% of CDI |
||||||||||
(2) 107% to 107.9% of CDI |
||||||||||
(3) 108% to 108.1% of CDI |
(*) These debentures can be converted into shares and, therefore, are considered in the calculation of the dilutive effect for the earnings per share (note 24)
(**) In accordance with CPC 38/IAS 39, this refers to borrowing costs directly attributable to the issuance of the respective debts.
(***) On June 28, 2017, the subsidiary obtained the agreement of the debenture holders for non-compliance with the Debt Service Coverage Ratio (DSCR) indicator relating to the calculation for June 2017 (higher than 1.00) and DSCR relating to the calculation for December 2017 (higher than 1.05).
The maturities of the principal of debentures recognized in noncurrent liabilities are as follows:
Maturity |
Consolidated | |
From October 1st, 2018 |
48,562 | |
2019 |
2,799,651 | |
2020 |
1,582,302 | |
2021 |
863,748 | |
2022 |
400,659 | |
2023 to 2027 |
698,344 | |
2028 to 2032 |
43,555 | |
Total |
6,436,820 |
66 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Main additions in the period:
R$ thousand |
| |||||||||||
Company |
Issue |
Quantity issued |
Released in 2017 |
Released net of fundraising costs |
Interest |
Utilization | ||||||
CPFL Piratininga |
8th issue |
306,000 |
306,000 |
303,442 |
Semiannually |
Subsidiary's investment plan, debt refinancing and working capital improvement | ||||||
RGE |
8th issue |
380,000 |
380,000 |
376,605 |
Semiannually |
Subsidiary's investment plan, debt refinancing and working capital improvement | ||||||
CPFL Renováveis - parent company (a) |
5th issue |
100,000,000 |
100,000 |
97,072 |
Semiannually |
Subsidiary's investment plan | ||||||
CPFL Renováveis - controladora (a) |
|
7th issue |
|
250,000 |
|
250,000 |
|
243,472 |
|
Semiannually |
|
Subsidiary's investment plan |
1,036,000 |
1,020,591 |
(a) the agreement has no restrictive covenants
Pre-payment
6th issue - CPFL Paulista, CPFL Piratininga and RGE – In the nine months period ended September 30, 2017, two quotas of principal were paid of the 6th issue of debentures of the subsidiaries CPFL Paulista (R$ 405,660), CPFL Piratininga (R$ 67,610) and RGE (R$ 311,649), whose due date were July 2017 and 2018.
5th issue of debentures - CPFL Energia – In the nine months period ended September 30, 2017, R$ 460,194 of the Company’s 5th issue of debentures, with original maturities in October 2019 and 2020, were settled.
RESTRICTIVE COVENANTS
The debenture agreements are subject to certain restrictive covenants, including covenants that require the Company and its subsidiaries to maintain certain financial ratios within pre-established parameters. Moreover, these agreements contain restrictive non-financial covenants, which are complied with as per the last measurement period.
Debentures issued in 2017 are subject to restrictive covenants, which require from Company or its subsidiaries to maintain financial ratios, as follows:
CPFL Piratininga and RGE
Maintenance, by the Company, of the following ratios:
· Net indebtedness divided by EBITDA – maximum of 3.75;
· EBITDA divided by finance income (expenses) - minimum of 2.25;
The details of the restrictive conditions for other debts are presented in the Financial Statements of December 31, 2016.
The Management of the Group monitors these ratios systematically and constantly to ensure that the conditions are complied with. In the opinion of the Group’s Management, all restrictive covenants and covenants whose indicators are measured semiannually and annually have been properly complied with, as per the last measurement period, that is, June 30, 2017 and December 31, 2016, respectively.
( 18 ) PRIVATE PENSION PLAN
The subsidiaries have supplementary retirement and pension plans for their employees, the characteristics of which are described in note 19 to the financial statements for the year ended December 31, 2016.
18.1 Movements in the defined benefit plans
The movements in net liability occurred in the period are as follows:
67 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
CPFL Paulista |
CPFL Piratininga |
CPFL Geração |
RGE |
RGE Sul |
Total | ||||||
Net actuarial liability at December 31, 2016 |
800,445 |
139,958 |
18,954 |
4,972 |
74,830 |
1,039,159 | |||||
Expenses (income) recognized in the statement of profit or loss |
63,376 |
12,933 |
1,550 |
190 |
7,377 |
85,426 | |||||
Sponsors' contributions transferred during the year/period |
(23,213) |
(8,728) |
(323) |
(5,093) |
(4,507) |
(41,864) | |||||
Net actuarial liability at September 30, 2017 |
840,608 |
144,163 |
20,182 |
69 |
77,700 |
1,082,721 | |||||
Other contributions |
11,225 |
641 |
146 |
94 |
- |
12,106 | |||||
Total liability |
851,833 |
144,804 |
20,328 |
163 |
77,700 |
1,094,827 | |||||
Current |
80,091 | ||||||||||
Noncurrent |
1,014,736 |
The income and expenses recognized as cost of the operation are shown below:
Nine months 2017 | |||||||||||
CPFL Paulista |
CPFL Piratininga |
CPFL Geração |
RGE |
RGE Sul |
Total | ||||||
Service cost |
531 |
2,364 |
54 |
204 |
1,615 |
4,768 | |||||
Interest on actuarial obligations |
357,459 |
95,670 |
8,574 |
28,047 |
38,205 |
527,955 | |||||
Expected return on plan assets |
(294,614) |
(85,101) |
(7,078) |
(28,061) |
(32,444) |
(447,298) | |||||
Total expense (income) |
63,376 |
12,933 |
1,550 |
190 |
7,377 |
85,426 | |||||
Nine months 2016 | |||||||||||
CPFL Paulista |
CPFL Piratininga |
CPFL Geração |
RGE |
RGE Sul |
Total | ||||||
Service cost |
604 |
2,248 |
55 |
35 |
- |
2,942 | |||||
Interest on actuarial obligations |
348,598 |
89,839 |
8,333 |
26,078 |
- |
472,848 | |||||
Expected return on plan assets |
(303,883) |
(87,027) |
(7,228) |
(26,689) |
- |
(424,827) | |||||
Effect of asset ceiling |
- |
- |
- |
520 |
- |
520 | |||||
Total expense (income) |
45,319 |
5,060 |
1,160 |
(56) |
- |
51,483 |
The main assumptions considered in the actuarial calculation, based on the actuarial reports prepared as of December 31, 2016 and 2015, were as follows:
CPFL Paulista, CPFL Geração and CPFL Piratininga |
RGE |
RGE Sul | ||||||||
12/31/2016 |
12/31/2015 |
12/31/2016 |
12/31/2015 |
12/31/2016 | ||||||
Nominal discount rate for actuarial liabilities: |
10,99% p.a. |
12,67% p.a. |
10,99% p.a. |
12,67% p.a. |
10,99% p.a. | |||||
Nominal return rate on plan assets: |
10,99% p.a. |
12,67% p.a. |
10,99% p.a. |
12,67% p.a. |
10,99% p.a. | |||||
Estimated rate of nominal salary increase: |
7,00% p.a. |
6,79% p.a. |
8,15% p.a. |
6,79% p.a. |
7,29% p.a. | |||||
Estimated rate of nominal benefits increase: |
5,00% p.a. |
5,00% p.a. |
5,00% p.a. |
4,50% p.a. |
5,00% p.a. | |||||
Estimated long-term inflation rate (basis for determining the nominal rates above) |
5,00% p.a. |
5,00% p.a. |
5,00% p.a. |
5,00% p.a. |
5,00% p.a. | |||||
General biometric mortality table: |
AT-2000 (-10) |
AT-2000 (-10) |
BR-EMS sb v.2015 |
AT-2000 (-10) |
AT-2000 | |||||
Biometric table for the onset of disability: |
Low Light |
Low Light |
Medium Light |
Low Light |
Medium Light | |||||
Expected turnover rate: |
ExpR_2012* |
ExpR_2012* |
Null |
ExpR_2012 |
Null | |||||
Likelihood of reaching retirement age: |
100% when a beneficiary of the plan first becomes eligible |
100% when a beneficiary of the plan first becomes eligible |
100% one year after when a beneficiary of the plan first becomes eligible |
100% when a beneficiary of the plan first becomes eligible |
100% one year after when a beneficiary of the plan first becomes eligible | |||||
(*) FUNCESP experience, with aggravation of 40% |
68 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 19 ) REGULATORY CHARGES
Consolidated | |||
September 30, 2017 |
December 31, 2016 | ||
Financial compensation for the use of water resources |
826 |
1,385 | |
Global reversal reserve - RGR |
17,520 |
17,469 | |
ANEEL inspection fee - TFSEE |
2,094 |
2,044 | |
Energy development account - CDE |
261,580 |
309,117 | |
Tariff flags and others |
170,259 |
36,064 | |
Total |
452,279 |
366,078 |
Energy development account – CDE: refers to the (i) annual CDE quota for the year 2017 in the amount of R$ 138,135 (R$ 164,681 at December 31, 2016); (ii) quota intended for the refund of the amount contributed to the CDE account for the period from January 2013 to January 2014 totaling R$ 46,797 (R$ 44,622 at December 31, 2016); and (iii) quota intended for the refund of the amount contributed to the Regulated Contracting Environment (ACR) account for the period from February to December 2014, in the amount of R$ 76,648 (R$ 99,814 at December 31, 2016). The subsidiaries matched the payables relating to the CDE account with the receivables relating to the Eletrobras account (note 11) in the nine months period ended September 30, 2017, in the amount of R$ 220,946.
( 20 ) TAXES, FEES AND CONTRIBUTIONS
Consolidated | |||
September 30, 2017 |
December 31, 2016 | ||
Current |
|||
IRPJ (corporate income tax) |
75,975 |
42,793 | |
CSLL (social contribution on net income) |
28,489 |
14,434 | |
Income tax and social contribution |
104,464 |
57,227 | |
ICMS (State VAT) |
399,408 |
416,096 | |
PIS (tax on revenue) |
27,259 |
28,759 | |
COFINS (tax on revenue) |
120,026 |
126,939 | |
Others |
47,555 |
52,522 | |
Other taxes |
594,249 |
624,317 | |
|
| ||
Total current |
698,712 |
681,544 | |
Noncurrent |
|||
PIS (Tax on Revenue) |
21,107 |
26,814 | |
Other taxes |
21,107 |
26,814 | |
Total noncurrent |
21,107 |
26,814 |
69 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 21 ) PROVISION FOR TAX, CIVIL AND LABOR RISKS AND ESCROW DEPOSITS
Consolidated | |||||||
September 30, 2017 |
December 31, 2016 | ||||||
Provision for tax, civil and labor risks |
Escrow Deposits |
Provision for tax, civil and labor risks |
Escrow Deposits | ||||
Labor |
208,128 |
118,107 |
222,001 |
110,147 | |||
Civil |
301,123 |
105,554 |
236,915 |
114,214 | |||
Tax |
|||||||
FINSOCIAL |
33,819 |
94,994 |
32,372 |
90,951 | |||
Income Tax |
148,736 |
377,776 |
142,790 |
150,439 | |||
Others |
154,172 |
136,664 |
113,227 |
84,091 | |||
336,726 |
609,434 |
288,389 |
325,481 | ||||
Others |
102,471 |
4,431 |
85,971 |
229 | |||
Total |
948,448 |
837,526 |
833,276 |
550,072 |
The movements in the provision for tax, civil, labor and other risks are shown below:
Consolidated | |||||||||||||
December 31, 2016 |
Additions |
Reversals |
Payments |
Monetary adjustment |
Business combinations |
September 30, 2017 | |||||||
Labor |
222,001 |
63,065 |
(28,838) |
(68,690) |
26,405 |
(5,817) |
208,128 | ||||||
Civil |
236,915 |
73,726 |
(23,846) |
(84,604) |
17,668 |
81,264 |
301,123 | ||||||
Tax |
288,389 |
24,235 |
(5,968) |
(64) |
17,342 |
12,791 |
336,726 | ||||||
Others |
85,971 |
4,168 |
(59) |
(7,486) |
7,902 |
11,974 |
102,471 | ||||||
Total |
833,276 |
165,194 |
(58,710) |
(160,843) |
69,318 |
100,212 |
948,448 |
The provision for tax, civil, labor and other risks was based on the assessment of the risks of losses on lawsuits to which the Company and its subsidiaries are parties, where the likelihood of loss is probable in the opinion of the outside legal counselors and the Group’s management.
The details of the nature of the provision for tax, civil, labor and other risks and escrow deposits are presented in the Note 22 of the financial statements at December 31, 2016.
The Company and its subsidiaries are involved in other lawsuits and risks for which Management, supported by the opinion of its outside legal counselors, believes that the likelihood of a favorable outcome is possible as there is a solid defense position for these cases and, therefore, no provision was recognized. It is not yet possible to predict the outcome of the courts’ decisions or any other decisions in similar proceedings considered as probable or remote.
The claims relating to possible losses at September 30, 2017 and December 31, 2016 were as follows:
Consolidated |
||||||
September 30, 2017 |
December 31, 2016 |
|||||
Labor |
723,054 |
668,005 |
Work accidents, risk premium for dangerousness at workplace and overtime | |||
Civil |
1,161,063 |
1,004,279 |
Personal injury, environmental impacts and overfed tariffs | |||
Tax |
4,740,916 |
4,611,077 |
ICMS, FINSOCIAL, PIS, COFINS, Income Tax and Social Contribution | |||
Regulatory |
84,616 |
93,827 |
Technical, commercial and economic-financial supervisions | |||
Total |
6,709,648 |
6,377,188 |
Tax – there is a discussion about the deductibility for income tax of the expense recognized in 1997 relating to the commitment assumed in regard to the pension plan of employees of the subsidiary CPFL Paulista with Fundação CESP in the estimated amount of R$ 1,167,393. In January 2016, the subsidiary obtained court decisions that authorized the replacement of the escrow deposits related to these lawsuits with financial guarantees (letter of guarantee and performance bond), for which the withdrawals on behalf of the subsidiary occurred in 2016. There is an appeal by the Office of Attorney-General of the National Treasury in both cases, without suspensive effect, which is pending a decision of the Federal Regional Court. Concurrently, in February 2017, there was a decision for the refund of the amount related to interest incurred on one of the deposits withdrawn. Therefore, the subsidiary made an escrow deposit of R$ 206,874.
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Regarding the labor risks, as described in note 22 to the financial statements for the year ended December 31, 2016, there is a discussion about the possibility of changing the inflation adjustment index used by the Labor Court, the status of such discussion has been unchanged since then and the risk remains as possible.
Based on the opinion of their outside legal counselors, the Group’s management believes that the amounts provided for reflect the current best estimate.
( 22 ) OTHER PAYABLES
Consolidated | ||||||||
Current |
Noncurrent | |||||||
September 30, 2017 |
December 31, 2016 |
September 30, 2017 |
December 31, 2016 | |||||
Consumers and concessionaires |
49,088 |
73,864 |
43,765 |
44,711 | ||||
Energy efficiency program - PEE |
258,575 |
257,622 |
83,938 |
58,798 | ||||
Research & Development - P&D |
120,976 |
75,655 |
39,196 |
55,272 | ||||
EPE / FNDCT / PROCEL |
14,031 |
12,928 |
- |
- | ||||
Reversion fund |
- |
- |
17,750 |
17,750 | ||||
Advances |
305,762 |
163,054 |
6,903 |
8,029 | ||||
Tariff discounts - CDE |
13,343 |
8,891 |
- |
- | ||||
Provision for socio environmental costs |
12,586 |
13,703 |
67,584 |
61,828 | ||||
Payroll |
13,045 |
16,951 |
- |
- | ||||
Profit sharing |
43,450 |
56,215 |
7,056 |
11,400 | ||||
Collection agreements |
66,713 |
69,793 |
- |
- | ||||
Guarantees |
- |
- |
24,608 |
44,140 | ||||
Business combination |
6,845 |
9,492 |
- |
- | ||||
Others |
68,610 |
49,455 |
2,738 |
7,364 | ||||
Total |
973,025 |
807,623 |
293,538 |
309,292 |
Advances: refer mainly to advances from customers in relation to advance billing by the subsidiary CPFL Renováveis, before the energy or service has actually been provided or delivered.
( 23 ) EQUITY
The shareholders’ interest in the Company’s equity at September 30, 2017 and December 31, 2016 is shown below:
Number of shares | ||||
September 30, 2017 | ||||
Shareholders |
Common shares |
Interest % | ||
State Grid Brazil Power Participações S.A. |
322,078,613 |
31.64% | ||
ESC Energia S.A. |
234,086,204 |
23.00% | ||
Members of Executive Board and Board of Directors |
23,516 |
0.00% | ||
Other shareholders |
461,726,413 |
45.36% | ||
Total |
1,017,914,746 |
100.00% |
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Number of shares | ||||
December 31, 2016 | ||||
Shareholders |
Common shares |
Interest % | ||
Caixa de Previdência dos Funcionários do Banco do Brasil - Previ |
299,787,559 |
29.45% | ||
Camargo Correa S.A. |
5,897,311 |
0.58% | ||
ESC Energia S.A. |
234,086,204 |
23.00% | ||
Bonaire Participações S.A. |
1,249,386 |
0.12% | ||
Energia São Paulo FIA |
35,145,643 |
3.45% | ||
Fundação Petrobras de Seguridade Social - Petros |
28,056,260 |
2.76% | ||
Fundação Sistel de Seguridade Social |
37,070,292 |
3.64% | ||
Fundação Sabesp de Seguridade Social - Sabesprev |
696,561 |
0.07% | ||
Fundação CESP |
51,048,952 |
5.02% | ||
Members of Executive Board |
34,250 |
0.00% | ||
BNDES Participações S.A. |
68,592,097 |
6.74% | ||
Antares Holdings Ltda. |
16,967,165 |
1.67% | ||
Brumado Holdings Ltda. |
36,497,075 |
3.59% | ||
Other shareholders |
202,785,991 |
19.92% | ||
Total |
1,017,914,746 |
100.00% |
On January 23, 2017, the Company received a correspondence from State Grid Brazil Power Participações S.A.. (“State Grid Brazil”) informing that on that date the Share Purchase Agreement dated September 2, 2016 between State Grid Brazil, Camargo Corrêa S.A., Caixa de Previdência dos Funcionários do Banco do Brasil – PREVI, Fundação CESP, Fundação Sistel de Seguridade Social, Fundação Petrobras de Seguridade Social – PETROS, Fundação SABESP de Seguridade Social — SABESPREV, and certain other parties, had been signed.
After finalizing the transaction, State Grid Brazil became the parent company of CPFL Energia with 54.64% (556,164,817 shares, direct or indirect) of the Company’s voting and total capital.
With the transaction, State Grid Brazil became the only controlling shareholder of the Company, and the Shareholders’ Agreement dated March 22, 2002 signed among the former shareholders was terminated.
On August 14, 2017, the Company disclosed to the Market that Bradespar S.A., due to the merger of its subsidiaries Antares Holdings Ltda. and Brumado Holdings Ltda., became the holder of 53,464,240 common shares issued by the Company, representing 5.25% of the total capital of the Company. This transaction does not entail any change in the Company’s shareholding control or administrative structure.
The details of the items included in equity are described in the financial statements for the year ended December 31, 2016.
( 24 ) EARNINGS PER SHARE
Earnings per share – basic and diluted
The calculation of the basic and diluted earnings per share for the quarters and nine months periods ended September 30, 2017 and 2016 was based on the profit attributable to the controlling shareholders and the weighted average number of common shares outstanding during the reporting periods.
2017 |
2016 |
||||||||
3rd Quarter |
Nine months |
3rd Quarter |
Nine months |
||||||
Numerator |
|||||||||
Profit attributable to controlling shareholders |
331,813 |
721,173 |
231,565 |
762,725 |
|||||
Denominator |
|||||||||
Weighted average number of shares held by shareholders |
1,017,914,746 |
1,017,914,746 |
1,017,914,746 |
1,017,914,746 |
(*) | ||||
Earnings per share - basic |
0.33 |
0.71 |
0.23 |
0.75 |
|||||
Numerator |
|||||||||
Profit attributable to controlling shareholders |
331,813 |
721,173 |
231,565 |
762,725 |
|||||
Dilutive effect of convertible debentures of subsidiary CPFL Renováveis |
(2,718) |
(2,718) |
(7,179) |
(7,179) |
|||||
Profit attributable to controlling shareholders |
329,094 |
718,454 |
224,386 |
755,546 |
|||||
Denominator |
|||||||||
Weighted average number of shares held by shareholders |
1,017,914,746 |
|
1,017,914,746 |
|
1,017,914,746 |
|
1,017,914,746 |
(*) | |
Earnings per share - diluted |
0.32 |
0.71 |
0.22 |
0.74 |
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
(*)Considers the event that occurred on April 29, 2016, related to the capital increase through issue of 24,900,531 shares (note 24). In accordance with CPC 41/IAS 33, when there is an increase in the number of shares without an increase in resources, the number of shares is adjusted as if the event had occurred at the beginning of the oldest period presented
( 25 ) NET OPERATING REVENUE
Consolidated | ||||||||
2017 |
2016 | |||||||
Revenue from Electric Energy Operations |
3rd quarter |
Nine months |
3rd quarter (Restated) |
Nine months (Restated) | ||||
Consumer class |
||||||||
Residential |
2,708,078 |
8,580,231 |
2,304,438 |
7,611,526 | ||||
Industrial |
1,276,260 |
3,778,892 |
1,295,120 |
3,963,933 | ||||
Commercial |
1,228,395 |
4,048,359 |
1,196,170 |
4,023,477 | ||||
Rural |
273,868 |
859,869 |
191,310 |
552,378 | ||||
Public administration |
176,618 |
575,827 |
154,934 |
495,974 | ||||
Public lighting |
164,093 |
477,590 |
139,861 |
428,024 | ||||
Public services |
249,703 |
720,235 |
214,077 |
665,123 | ||||
(-) Adjustment of revenues from excess demand and excess reactive power |
(19,876) |
(65,029) |
(15,654) |
(51,277) | ||||
Billed |
6,057,138 |
18,975,975 |
5,480,257 |
17,689,157 | ||||
Unbilled (net) |
53,122 |
(168,362) |
(5,845) |
93,319 | ||||
(-) Reclassification to Network Usage Charge - TUSD - Captive Consumers |
(2,132,292) |
(6,959,567) |
(2,064,321) |
(6,700,140) | ||||
Electricity sales to final consumers |
3,977,969 |
11,848,045 |
3,410,091 |
11,082,336 | ||||
Furnas Centrais Elétricas S.A. |
144,208 |
421,449 |
137,893 |
396,271 | ||||
Other concessionaires and licensees |
931,259 |
2,206,234 |
682,585 |
1,683,928 | ||||
(-) Reclassification to Network Usage Charge - TUSD - Captive Consumers |
(13,936) |
(38,783) |
(11,773) |
(37,721) | ||||
Spot market energy |
1,041,576 |
1,894,284 |
192,485 |
320,981 | ||||
Electricity sales to wholesalers |
2,103,107 |
4,483,184 |
1,001,189 |
2,363,459 | ||||
Revenue due to Network Usage Charge - TUSD - Captive Consumers |
2,146,228 |
6,998,350 |
2,076,094 |
6,737,861 | ||||
Revenue due to Network Usage Charge - TUSD - Free Consumers |
514,854 |
1,578,458 |
531,631 |
1,506,994 | ||||
(-) Adjustment of revenues from excess demand and excess reactive power |
(5,902) |
(18,936) |
(4,124) |
(12,671) | ||||
Revenue from construction of concession infrastructure |
602,337 |
1,480,699 |
325,100 |
816,950 | ||||
Sector financial asset and liability (Note 8) |
1,244,970 |
1,049,284 |
(558,007) |
(1,752,239) | ||||
Concession financial asset - Adjustment of expected cash flow (Note 10) |
10,399 |
91,713 |
45,440 |
197,461 | ||||
Energy development account - CDE - Low-income, Tariff discounts - judicial injunctions and other tariff discounts |
334,024 |
1,071,948 |
430,363 |
925,383 | ||||
Other revenues and income |
145,203 |
377,339 |
119,216 |
323,503 | ||||
Other operating revenues |
4,992,113 |
12,628,857 |
2,965,712 |
8,743,241 | ||||
Total gross operating revenue |
11,073,189 |
28,960,086 |
7,376,992 |
22,189,035 | ||||
|
|
|
| |||||
Deductions from operating revenues |
||||||||
ICMS |
(1,271,009) |
(4,026,211) |
(1,103,749) |
(3,619,844) | ||||
PIS |
(164,278) |
(439,068) |
(111,639) |
(341,665) | ||||
COFINS |
(756,678) |
(2,022,379) |
(514,251) |
(1,573,816) | ||||
ISS |
(3,844) |
(10,438) |
(2,817) |
(7,719) | ||||
Global reversal reserve - RGR |
(755) |
(2,211) |
(2,142) |
(3,527) | ||||
Energy development account - CDE |
(784,740) |
(2,399,054) |
(788,646) |
(2,465,988) | ||||
Research and development and energy efficiency programs |
(56,047) |
(140,481) |
(33,494) |
(99,783) | ||||
PROINFA |
(41,414) |
(128,181) |
(30,732) |
(79,641) | ||||
Tariff flags and others |
(202,835) |
(483,898) |
(125) |
(377,223) | ||||
IPI |
(11) |
(102) |
(40) |
(124) | ||||
FUST and FUNTEL |
- |
(19) |
(10) |
(27) | ||||
Others |
(7,632) |
(22,771) |
(6,532) |
(19,370) | ||||
|
(3,289,243) |
(9,674,812) |
(2,594,177) |
(8,588,728) | ||||
Net operating revenue |
7,783,946 |
19,285,274 |
4,782,815 |
13,600,307 |
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated | ||||||||
2017 |
2016 | |||||||
Revenue from operations with electricity - in GWh (*) |
3rd Quarter |
Nine months |
3rd Quarter |
Nine months | ||||
Consumer class |
||||||||
Residential |
4,538 |
14,256 |
3,755 |
12,023 | ||||
Industrial |
3,754 |
10,896 |
3,312 |
9,546 | ||||
Commercial |
2,325 |
7,609 |
2,184 |
7,121 | ||||
Rural |
877 |
2,811 |
593 |
1,624 | ||||
Public administration |
308 |
1,075 |
288 |
913 | ||||
Public lighting |
497 |
1,468 |
432 |
1,277 | ||||
Public services |
588 |
1,600 |
446 |
1,349 | ||||
Billed |
12,886 |
39,715 |
11,010 |
|
33,853 | |||
Own consumption |
8 |
25 |
7 |
24 | ||||
Electricity sales to final consumers |
12,894 |
39,740 |
11,017 |
33,877 | ||||
Furnas Centrais Elétricas S.A. |
763 |
2,263 |
763 |
2,272 | ||||
Other concessionaires and licensees |
5,845 |
15,532 |
3,509 |
8,934 | ||||
Spot market energy |
2,590 |
6,963 |
2,973 |
4,737 | ||||
Electricity sales to wholesalers |
9,197 |
24,759 |
7,245 |
15,943 |
(*) Information not reviewed by the independent auditors.
Consolidated | ||||
Nº of consumers (*) |
September 30, 2017 |
September 30, 2016 | ||
Consumer class |
||||
Residential |
8,284,900 |
7,036,187 | ||
Industrial |
60,098 |
54,242 | ||
Commercial |
545,514 |
467,295 | ||
Rural |
357,943 |
247,832 | ||
Public Administration |
60,695 |
52,005 | ||
Public Lighting |
11,118 |
10,843 | ||
Public Services |
9,765 |
8,580 | ||
Total |
9,330,033 |
7,877,828 | ||
(*) Information not reviewed by the independent auditors. |
25.1 Adjustment of revenues from excess demand and excess reactive power
The information related to the recognition and historical data are described in note 27.1 to the financial statements for the year ended December 31, 2016.
25.2 Periodic tariff review (“RTP”) and Annual tariff adjustment (“RTA”)
2017 |
2016 | |||||||||
Subsidiary |
Month |
RTA |
Effect perceived by consumers (a) |
RTA / RTP |
Effect perceived by consumers (a) | |||||
CPFL Paulista |
April |
-0.80% |
-10.50% |
9.89% |
7.55% | |||||
CPFL Piratininga |
October (b) |
7.69% |
17.28% |
-12.54% |
-24.21% | |||||
RGE |
June |
3.57% |
5.00% |
-1.48% |
-7.51% | |||||
RGE Sul |
April |
-0.20% |
-6.43% |
3.94% |
-0.34% | |||||
CPFL Santa Cruz |
March |
-2.44% |
-8.42% |
22.51% |
7.15% | |||||
CPFL Leste Paulista |
March |
-1.20% |
-4.15% |
21.04% |
13.32% | |||||
CPFL Jaguari |
March |
-0.74% |
-2.56% |
29.46% |
13.25% | |||||
CPFL Sul Paulista |
March |
-3.12% |
-10.73% |
24.35% |
12.82% | |||||
CPFL Mococa |
March |
-0.95% |
-3.28% |
16.57% |
9.02% |
(a) Represents the average effect perceived by the consumer, as a result of the elimination from the tariff base of financial components that had been added in the prior tariff adjustment (information not reviewed by the independent auditors).
(b) As described in note 34.1, the RTA for CPFL Piratininga occurred in October, 2017.
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Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
25.3 Energy Development Account (CDE) – Low income, other tariff subsidies and tariff discounts - injunctions
All the details about CDE are described in note 27.4 of the financial statements for the year ended December 31, 2016.
In the nine months period ended September 30, 2017, revenue of R$ 1,071,948 was recognized (R$ 739,110 in the nine months period ended September 30, 2016), of which (i) R$ 75,509 related to low-income subsidy (R$ 70,912 in the nine months period ended September 30, 2016), (ii) R$ 908,434 related to other tariff discounts (R$ 668,198 in the nine months period ended September 30, 2016) and (iii) R$ 88,005 related to tariff discounts - injunctions. These items were recognized against other receivables, in line item Trade receivables - Eletrobrás (note 11) and other payables in line item Tariff discounts - CDE (note 22).
25.4Tariff flags
The system for applying the Tariff Flags is described in note 27.5 to the financial statements for the year ended December 31, 2016.
In the nine months period ended September 30, 2017, ANEEL approved the tariff flags billed from December 2016 to July 2017 of the distribution subsidiaries. The amount billed in this period was R$ 344,278, of this amount R$ 160,995 were used to offset part of the sector financial asset and liability (note 8) and R$ 183,283 were passed on to the Centralizing Account for Tariff Flag Resources (CCRBT). R$ 170,241, related to tariff flag billed in August and September 2017 and not yet approved, are recorded in regulatory charges (nota 19).
25.5 Energy development account (“CDE”)
ANEEL, by means of Ratifying Resolution (“REH”) No. 2,202 of February 7, 2017, amended by REH No. 2,204 of March 7, 2017, established the definitive annual quotas of CDE for the year 2017. These quotas comprise: (i) annual quota of the CDE – USAGE account; and (ii) quota of the CDE – Energy account, related to part of the CDE contributions received by the electric energy distribution concessionaires in the period from January 2013 to January 2014, which should be charged from consumers and passed on to the CDE Account in up to five years from the RTE of 2015. Furthermore, by means of REH No. 2.004 of December 15, 2015, ANEEL established another quota intended for the amortization of the ACR Account, whose amount were updated by REH No. 2.231, of April 25, 2017, with payment and transfer to the CDE Account for the tariff period of each subsidiary.
25.6Adjustment for refunding the Reserve Energy Charge ("EER") of Angra III
ANEEL approved through REH No. 2,214 of March 28, 2017 the republication of the energy tariff – TE and Distribution System Usage Tariff - TUSD for the distribution subsidiaries, with the purpose of refunding the amount forecast for the Reserve Energy Charge (EER) of the energy generation company UTN Almirante Alvaro Alberto - Unit III (Angra III).
The tariffs resulting from this decision were effective in April 2017, however, as the reading period of each consuming unit does not coincide with the calendar month, this reduction occurred in the revenue amounts of April and May 2017, with its impact diluted between the two periods.
The average effect perceived by consumers was: -15.28% for CPFL Paulista, -6.8% for CPFL Piratininga, -10.89% for RGE, -13.76% for RGE Sul, -13.41% for CPFL Santa Cruz, -16.49% for CPFL Jaguari, -14.81% for CPFL Leste Paulista, -14.71% for CPFL Mococa, and -14.29% for CPFL Sul Paulista.
The estimated impact of this adjustment is an average reduction of -12.85% in revenues of distribution subsidiaries in April 2017.
75 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 26 ) COST OF ELECTRIC ENERGY
Consolidated | ||||||||
2017 |
2016 | |||||||
Electricity Purchased for Resale |
3rd Quarter |
Nine months |
3rd Quarter |
Nine months | ||||
Itaipu Binacional |
595,889 |
1,763,987 |
462,469 |
1,513,184 | ||||
Spot market / PROINFA |
114,110 |
315,928 |
80,271 |
169,721 | ||||
Energy purchased through auction in the regulated market and bilateral contracts |
4,540,978 |
10,366,187 |
2,168,998 |
5,960,300 | ||||
PIS and COFINS credit |
(478,219) |
(1,134,417) |
(246,031) |
(697,945) | ||||
Subtotal |
4,772,758 |
11,311,684 |
2,465,707 |
6,945,260 | ||||
Electricity Network Usage Charge |
||||||||
Basic network charges |
491,691 |
988,004 |
198,405 |
602,168 | ||||
Transmission from Itaipu |
66,358 |
96,896 |
13,386 |
38,799 | ||||
Connection charges |
30,950 |
90,764 |
22,142 |
57,487 | ||||
Charges for use of the distribution system |
7,515 |
29,581 |
9,272 |
28,179 | ||||
System service charges - ESS |
(75,657) |
(224,185) |
84,763 |
281,672 | ||||
Reserve energy charges - EER |
(74) |
(91) |
5,538 |
106,925 | ||||
PIS and COFINS credit |
(47,457) |
(87,399) |
(28,700) |
(97,410) | ||||
Subtotal |
473,326 |
893,571 |
304,806 |
1,017,820 | ||||
Total |
5,246,084 |
12,205,255 |
2,770,513 |
7,963,080 |
Consolidated | ||||||||
2017 |
2016 | |||||||
Electricity Purchased for Resale |
3rd Quarter |
Nine months |
3rd Quarter |
Nine months | ||||
Itaipu Binacional |
595,889 |
1,763,987 |
462,469 |
1,513,184 | ||||
Spot market / PROINFA |
114,110 |
315,928 |
80,271 |
169,721 | ||||
Energy purchased through auction in the regulated market and bilateral contracts |
4,540,978 |
10,366,187 |
2,168,998 |
5,960,300 | ||||
PIS and COFINS credit |
(478,219) |
(1,134,417) |
(246,031) |
(697,945) | ||||
Subtotal |
4,772,758 |
11,311,684 |
2,465,707 |
6,945,260 | ||||
Electricity Network Usage Charge |
||||||||
Basic network charges |
491,691 |
988,004 |
198,405 |
602,168 | ||||
Transmission from Itaipu |
66,358 |
96,896 |
13,386 |
38,799 | ||||
Connection charges |
30,950 |
90,764 |
22,142 |
57,487 | ||||
Charges for use of the distribution system |
7,515 |
29,581 |
9,272 |
28,179 | ||||
System service charges - ESS |
(75,657) |
(224,185) |
84,763 |
281,672 | ||||
Reserve energy charges - EER |
(74) |
(91) |
5,538 |
106,925 | ||||
PIS and COFINS credit |
(47,457) |
(87,399) |
(28,700) |
(97,410) | ||||
Subtotal |
473,326 |
893,571 |
304,806 |
1,017,820 | ||||
Total |
5,246,084 |
12,205,255 |
2,770,513 |
7,963,080 |
Consolidated | ||||||||
2017 |
2016 | |||||||
Electricity Purchased for Resale - in GWh (*) |
3rd Quarter |
Nine months |
3rd Quarter |
Nine months | ||||
Itaipu Binacional |
2,972 |
8,806 |
2,556 |
7,603 | ||||
Spot market/PROINFA |
630 |
2,457 |
461 |
1,631 | ||||
Energy purchased through auction in the regulated market and bilateral contracts |
16,054 |
47,342 |
13,073 |
36,808 | ||||
Total |
19,656 |
58,605 |
16,090 |
46,042 | ||||
(*) Information not reviewed by the independent auditors |
( 27 ) OPERATING COSTS AND EXPENSES
Parent Company | |||||||
General and Administrative expenses | |||||||
2017 |
2016 | ||||||
3rd Quarter |
Nine months |
3rd Quarter |
Nine months | ||||
Personnel |
4,675 |
24,169 |
12,391 |
28,345 | |||
Materials |
37 |
103 |
18 |
62 | |||
Third party services |
2,111 |
5,572 |
2,740 |
6,645 | |||
Depreciation and amortization |
55 |
163 |
46 |
148 | |||
Others |
793 |
1,736 |
888 |
1,825 | |||
Leases and rentals |
13 |
223 |
12 |
37 | |||
Publicity and advertising |
248 |
508 |
189 |
350 | |||
Legal, judicial and indemnities |
168 |
174 |
276 |
406 | |||
Donations, contributions and subsidies |
- |
15 |
- |
- | |||
Others |
365 |
816 |
410 |
1,031 | |||
Total |
7,672 |
31,743 |
16,083 |
37,025 |
76 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated | |||||||||||||||||||||||
3rd Quarter | |||||||||||||||||||||||
|
|
|
Services rendered to third parties |
Operating expenses |
|
| |||||||||||||||||
Operating costs |
Sales |
General |
Other |
Total | |||||||||||||||||||
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 | ||||||||||||
Personnel |
217,549 |
160,273 |
1 |
- |
40,862 |
32,061 |
70,769 |
68,855 |
- |
- |
329,180 |
261,189 | |||||||||||
Private Pension Plans |
28,483 |
23,658 |
- |
- |
- |
- |
- |
- |
- |
- |
28,483 |
23,658 | |||||||||||
Materials |
62,466 |
59,038 |
558 |
211 |
(305) |
2,121 |
6,733 |
3,396 |
- |
- |
69,452 |
64,766 | |||||||||||
Third party services |
59,930 |
66,425 |
501 |
627 |
40,466 |
36,662 |
72,923 |
52,817 |
- |
- |
173,821 |
156,531 | |||||||||||
Depreciation and amortization |
290,885 |
228,852 |
- |
- |
1,304 |
979 |
21,140 |
24,371 |
- |
- |
313,329 |
254,202 | |||||||||||
Costs of infrastructure construction |
- |
- |
598,698 |
324,154 |
- |
- |
- |
- |
- |
- |
598,698 |
324,154 | |||||||||||
Others |
39,115 |
23,938 |
(3) |
(2) |
52,498 |
51,857 |
27,815 |
42,631 |
105,702 |
74,560 |
225,127 |
192,984 | |||||||||||
Collection fees |
2,915 |
- |
- |
- |
18,045 |
16,205 |
- |
- |
- |
- |
20,960 |
16,205 | |||||||||||
Allowance for doubtful accounts |
- |
- |
- |
- |
32,817 |
34,161 |
- |
- |
- |
- |
32,817 |
34,161 | |||||||||||
Leases and rentals |
12,957 |
9,909 |
- |
- |
33 |
- |
4,698 |
3,885 |
- |
- |
17,688 |
13,794 | |||||||||||
Publicity and advertising |
60 |
60 |
- |
- |
41 |
- |
4,527 |
3,971 |
- |
- |
4,628 |
4,031 | |||||||||||
Legal, judicial and indemnities |
- |
- |
- |
- |
(40) |
- |
8,402 |
29,258 |
- |
- |
8,362 |
29,258 | |||||||||||
Donations, contributions and subsidies |
17 |
22 |
- |
- |
- |
3 |
704 |
69 |
- |
- |
721 |
94 | |||||||||||
Gain (loss) on disposal, retirement and other noncurrent assets |
- |
- |
- |
- |
- |
- |
- |
- |
50,414 |
12,290 |
50,414 |
12,290 | |||||||||||
Amortization of concession intangible asset |
- |
- |
- |
- |
- |
- |
- |
- |
71,294 |
62,365 |
71,294 |
62,365 | |||||||||||
Amortization of the risk premium paid -GSF |
2,398 |
2,400 |
- |
- |
- |
- |
- |
- |
- |
- |
2,398 |
2,400 | |||||||||||
Fee for the use of water |
1,402 |
2,936 |
- |
- |
- |
- |
- |
- |
- |
- |
1,402 |
2,936 | |||||||||||
Others |
19,365 |
8,612 |
(3) |
(2) |
1,603 |
1,489 |
9,485 |
5,449 |
(16,006) |
(95) |
14,443 |
15,453 | |||||||||||
Total |
698,427 |
562,184 |
599,755 |
324,990 |
134,824 |
123,680 |
199,380 |
192,069 |
105,702 |
74,560 |
1,738,089 |
1,277,483 | |||||||||||
Consolidated | |||||||||||||||||||||||
Nine months | |||||||||||||||||||||||
|
|
|
Services rendered to third parties |
Operating expenses |
|
| |||||||||||||||||
Operating costs |
Sales |
General |
Other |
Total | |||||||||||||||||||
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 |
2017 |
2016 | ||||||||||||
Personnel |
639,033 |
485,120 |
2 |
1 |
126,445 |
93,951 |
232,862 |
194,285 |
- |
- |
998,342 |
773,357 | |||||||||||
Private Pension Plans |
85,426 |
51,483 |
- |
- |
- |
- |
- |
- |
- |
- |
85,426 |
51,483 | |||||||||||
Materials |
162,061 |
124,936 |
856 |
471 |
4,432 |
5,331 |
14,659 |
13,083 |
- |
- |
182,008 |
143,821 | |||||||||||
Third party services |
198,894 |
199,037 |
1,285 |
1,414 |
123,734 |
105,282 |
224,297 |
157,586 |
- |
- |
548,210 |
463,318 | |||||||||||
Depreciation and amortization |
852,521 |
676,204 |
- |
- |
4,146 |
2,635 |
70,109 |
71,458 |
- |
- |
926,776 |
750,297 | |||||||||||
Costs of infrastructure construction |
- |
- |
1,478,990 |
815,681 |
- |
- |
- |
- |
- |
- |
1,478,990 |
815,681 | |||||||||||
Others |
117,091 |
86,037 |
(5) |
(8) |
167,722 |
180,576 |
174,243 |
170,785 |
299,048 |
218,403 |
758,098 |
655,794 | |||||||||||
Collection fees |
8,741 |
- |
- |
- |
52,090 |
47,519 |
- |
- |
- |
- |
60,831 |
47,519 | |||||||||||
Allowance for doubtful accounts |
- |
- |
- |
- |
118,885 |
130,026 |
- |
- |
- |
- |
118,885 |
130,026 | |||||||||||
Leases and rentals |
38,832 |
28,386 |
- |
- |
(128) |
- |
14,055 |
12,682 |
- |
- |
52,759 |
41,068 | |||||||||||
Publicity and advertising |
187 |
103 |
- |
- |
41 |
16 |
12,040 |
9,312 |
- |
- |
12,267 |
9,431 | |||||||||||
Legal, judicial and indemnities |
- |
- |
- |
- |
(40) |
- |
122,025 |
138,227 |
- |
- |
121,985 |
138,227 | |||||||||||
Donations, contributions and subsidies |
71 |
36 |
- |
- |
2 |
6 |
3,262 |
127 |
- |
- |
3,335 |
169 | |||||||||||
Gain (loss) on disposal, retirement and other noncurrent assets |
- |
- |
- |
- |
- |
- |
- |
- |
99,689 |
32,272 |
99,689 |
32,272 | |||||||||||
Amortization of concession intangible asset |
- |
- |
- |
- |
- |
- |
- |
- |
215,526 |
186,272 |
215,526 |
186,272 | |||||||||||
Amortization of the risk premium paid -GSF |
7,195 |
7,200 |
- |
- |
- |
- |
- |
- |
- |
- |
7,195 |
7,200 | |||||||||||
Fee for the use of water |
6,365 |
9,909 |
- |
- |
- |
- |
- |
- |
- |
- |
6,365 |
9,909 | |||||||||||
Others |
55,701 |
40,403 |
(5) |
(8) |
(3,128) |
3,009 |
22,861 |
10,438 |
(16,167) |
(141) |
59,262 |
53,700 | |||||||||||
Total |
2,055,025 |
1,622,816 |
1,481,128 |
817,558 |
426,479 |
387,775 |
716,170 |
607,198 |
299,048 |
218,402 |
4,977,850 |
3,653,749 |
77 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 28 ) FINANCE INCOME (EXPENSES)
Parent company |
Consolidated | ||||||||||||||
3rd Quarter 2017 |
Nine months 2017 |
3rd Quarter 2016 |
Nine months 2016 |
3rd Quarter 2017 |
Nine months 2017 |
3rd Quarter 2016 (Restated) |
|
Nine months 2016 | |||||||
Financial income |
|||||||||||||||
Income from financial investments |
1,051 |
3,449 |
21,251 |
48,516 |
94,177 |
383,653 |
186,959 |
484,733 | |||||||
Late payment interest and fines |
- |
2 |
460 |
464 |
60,858 |
203,693 |
58,088 |
174,934 | |||||||
Adjustment for inflation of tax credits |
3,942 |
6,211 |
1,569 |
5,419 |
9,866 |
14,821 |
9,528 |
27,078 | |||||||
Adjustment for inflation of escrow deposits |
6 |
19 |
12 |
34 |
13,847 |
39,911 |
9,287 |
26,835 | |||||||
Adjustment for inflation and exchange rate changes |
- |
8 |
- |
1 |
20,848 |
50,125 |
29,647 |
131,639 | |||||||
Discount on purchase of ICMS credit |
- |
- |
- |
- |
3,501 |
9,281 |
1,808 |
13,454 | |||||||
Adjustments to the sector financial asset (note 8) |
- |
- |
- |
- |
(1,105) |
- |
(5,944) |
50,643 | |||||||
PIS and COFINS on other finance income |
(429) |
(892) |
(1,248) |
(3,109) |
(10,118) |
(37,298) |
(22,882) |
(44,915) | |||||||
PIS and COFINS on interest on own capital |
(1,545) |
(1,574) |
(14) |
(1,156) |
(1,545) |
(1,574) |
(14) |
(1,156) | |||||||
Others |
3,971 |
8,755 |
3,290 |
11,537 |
15,224 |
46,283 |
19,835 |
68,910 | |||||||
Total |
6,995 |
15,979 |
25,321 |
61,706 |
205,553 |
708,896 |
286,310 |
932,154 | |||||||
Finance expenses |
|||||||||||||||
Interest on debts |
(19,199) |
(61,203) |
(1,772) |
(10,885) |
(393,441) |
(1,321,202) |
(447,606) |
(1,315,996) | |||||||
Adjustment for inflation and exchange rate changes |
3 |
2 |
(3,916) |
(25,959) |
(98,415) |
(436,458) |
(226,964) |
(515,106) | |||||||
(-) Capitalized interest |
- |
- |
- |
- |
8,057 |
42,215 |
18,493 |
52,432 | |||||||
Adjustments to the sector financial liability ( note 8) |
- |
- |
- |
- |
(30,390) |
(80,781) |
(996) |
(17,257) | |||||||
Use of public asset |
- |
- |
- |
- |
(1,031) |
(4,660) |
(4,120) |
(12,470) | |||||||
Others |
(3,455) |
(3,603) |
(1) |
(470) |
(33,732) |
(105,717) |
(42,010) |
(123,633) | |||||||
Total |
(22,651) |
(64,804) |
(5,689) |
(37,315) |
(548,953) |
(1,906,602) |
(703,203) |
(1,932,030) | |||||||
Finance expense, net |
(15,656) |
(48,825) |
19,631 |
24,391 |
(343,400) |
(1,197,706) |
(416,893) |
(999,877) |
Interest was capitalized at an average rate of 9.40% p.a. during the nine months period ended September 30, 2017 (10.87% p.a. in the nine months period ended September 30, 2016) on qualifying assets, in accordance with CPC 20 (R1) and IAS 23.
The line item Adjustment for inflation and exchange rate changes includes the effects of losses on derivative instruments amounting to R$ 299,160 in the nine months period ended September 30, 2017 (R$ 1,345,605 in the nine months period ended September 30, 2016) (note 32).
( 29 ) SEGMENT INFORMATION
The segregation of the Group’s operating segments is based on the internal financial information and management structure and is made by type of business: electric energy distribution, electric energy generation (conventional and renewable sources), electric energy commercialization and services rendered activities.
Profit or loss, assets and liabilities per segment include items directly attributable to the segment, as well as those that can be allocated on a reasonable basis, if applicable. Prices charged between segments are determined based on similar market transactions. Note 1 presents the subsidiaries according to their areas of operation and provides further information on each subsidiary and its business line and segment.
The information segregated by segment is presented below, according to the criteria established by the Group’s officers:
Distribution |
Generation |
Generation |
Commercialization |
Services |
Other (*) |
Elimination |
Total | ||||||||
Nine months 2017 |
|||||||||||||||
Net operating revenue |
15,320,657 |
506,494 |
996,327 |
2,362,076 |
41,296 |
58,424 |
19,285,274 | ||||||||
(-) Intersegment revenues |
22,710 |
323,729 |
419,460 |
7,809 |
312,135 |
9,197 |
(1,095,040) |
- | |||||||
Cost of electric energy |
(10,089,747) |
(91,464) |
(218,864) |
(1,805,180) |
- |
- |
(12,205,255) | ||||||||
Operating costs and expenses |
(3,096,790) |
(75,629) |
(271,917) |
(27,248) |
(284,738) |
(79,225) |
(3,835,548) | ||||||||
(-) Intersegment costs and expenses |
(590,345) |
(11,924) |
(57,747) |
(419,997) |
(7,953) |
(7,074) |
1,095,040 |
- | |||||||
Depreciation and amortization |
(569,327) |
(92,344) |
(461,530) |
(2,409) |
(14,384) |
(2,308) |
(1,142,302) | ||||||||
Income from electric energy service |
997,159 |
558,861 |
405,729 |
115,051 |
46,355 |
(20,987) |
2,102,168 | ||||||||
Equity |
- |
252,709 |
- |
- |
- |
- |
252,709 | ||||||||
Finance income |
472,228 |
89,450 |
106,957 |
12,586 |
7,092 |
20,582 |
708,896 | ||||||||
Finance expenses |
(951,199) |
(353,983) |
(494,239) |
(37,333) |
(4,838) |
(65,011) |
(1,906,602) | ||||||||
(-) Intersegment finance income (expense) |
1,372 |
(1,297) |
10,881 |
(5,182) |
48 |
(5,822) |
- | ||||||||
Profit (loss) before taxes |
519,560 |
545,741 |
29,328 |
85,122 |
48,658 |
(71,238) |
1,157,171 | ||||||||
Income tax and social contribution |
(235,340) |
(96,922) |
(50,044) |
(29,467) |
(10,861) |
10,954 |
(411,680) | ||||||||
Profit (loss) for the period |
284,221 |
448,818 |
(20,716) |
55,654 |
37,797 |
(60,284) |
745,490 | ||||||||
Attributable to owners of the Company |
284,221 |
412,370 |
(8,585) |
55,654 |
37,797 |
(60,284) |
721,173 | ||||||||
Attributable to noncontrolling interests |
- |
36,448 |
(12,130) |
- |
- |
- |
24,318 | ||||||||
Total assets (**) |
22,750,421 |
4,220,825 |
12,796,051 |
831,834 |
403,661 |
790,685 |
41,793,477 | ||||||||
Purchases of PP&E and intangible assets |
1,264,243 |
3,197 |
565,671 |
2,100 |
40,909 |
751 |
1,876,871 |
78 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Distribution |
Generation |
Generation |
Commercialization |
Services |
Other (*) |
Elimination |
Total | ||||||||
Nine months 2016 Restated (***) |
|||||||||||||||
Net operating revenue |
10,690,753 |
436,358 |
934,182 |
1,427,923 |
68,225 |
42,866 |
13,600,307 | ||||||||
(-) Intersegment revenues |
16,752 |
304,028 |
229,817 |
50,015 |
229,907 |
6,330 |
(836,850) |
- | |||||||
Cost of electric energy |
(6,659,834) |
(64,996) |
(142,772) |
(1,095,478) |
- |
- |
(7,963,080) | ||||||||
Operating costs and expenses |
(2,091,100) |
(72,332) |
(221,903) |
(25,717) |
(228,429) |
(77,700) |
(2,717,181) | ||||||||
(-) Intersegment costs and expenses |
(483,762) |
(8,992) |
(75,700) |
(252,926) |
(8,641) |
(6,828) |
836,850 |
- | |||||||
Depreciation and amortization |
(421,536) |
(92,991) |
(406,679) |
(2,879) |
(9,933) |
(2,549) |
(936,569) | ||||||||
Income from electric energy service |
1,051,273 |
501,075 |
316,945 |
100,937 |
51,129 |
(37,881) |
1,983,477 | ||||||||
Equity |
- |
200,944 |
- |
- |
- |
- |
200,944 | ||||||||
Finance income |
616,665 |
131,604 |
97,742 |
25,317 |
6,845 |
53,981 |
932,154 | ||||||||
Finance expenses |
(977,675) |
(413,364) |
(492,310) |
(19,003) |
(6,530) |
(23,149) |
(1,932,030) | ||||||||
(-) Intersegment finance income (expense) |
11,222 |
(1,915) |
674 |
7,795 |
2,764 |
(20,540) |
- | ||||||||
Profit (loss) before taxes |
701,486 |
418,345 |
(76,950) |
115,045 |
54,209 |
(27,590) |
1,184,545 | ||||||||
Income tax and social contribution |
(274,371) |
(74,189) |
(39,837) |
(36,169) |
(13,158) |
(4,967) |
(442,691) | ||||||||
Profit (loss) for the period |
427,114 |
344,156 |
(116,787) |
78,877 |
41,051 |
(32,556) |
741,854 | ||||||||
Attributable to owners of the Company |
427,114 |
311,412 |
(63,172) |
78,877 |
41,051 |
(32,556) |
762,725 | ||||||||
Attributable to noncontrolling interests |
- |
32,744 |
(53,616) |
- |
- |
- |
(20,871) | ||||||||
Total assets (**) |
22,887,781 |
5,310,924 |
12,459,791 |
466,021 |
345,372 |
701,103 |
42,170,992 | ||||||||
Purchases of PP&E and intangible assets |
709,200 |
11,728 |
802,228 |
2,490 |
31,312 |
2,728 |
1,559,686 |
(*) Others – refer basically to assets and transactions that are not related to any of the segments identified.
(**) The intangible assets, net of amortization, were allocated to the respective segments.
(***) For total assets, the balances refer to December 31, 2016.
( 30 ) RELATED PARTY TRANSACTIONS
The Company’s controlling shareholders are as follows:
· State Grid Brazil Power Participações S.A.
Indirect subsidiary of State Grid Corporation of China, a Chinese state-owned company primarily engaged in developing and operating businesses in the electric energy sector.
· ESC Energia S.A.
Subsidiary of State Grid Brazil Power Participações S.A.
The direct and indirect interests in operating subsidiaries are described in note 1.
Controlling shareholders, subsidiaries, associates, joint ventures and entities under common control and that in some way exercise significant influence over the Company and its subsidiaries and associates were considered as related parties.
The main natures and transactions are described in note 32 to the financial statements for the year ended December 31, 2016.
To ensure that the trading transactions with related parties are conducted under usual market conditions, the Group set up a “Related Parties Committee”, comprising representatives of the controlling shareholders, of the Company and an independent member, which analyzes the main transactions with related parties.
The total compensation of key management personnel in the nine months period ended September 30, 2017, as required by CVM Resolution 560/2008, was R$ 50,675 (R$ 41,764 in the nine months period ended September 30, 2016). This amount is comprised by R$ 49,625 related to short-term benefits (R$ 40,805 in the nine months period ended September 30, 2016), R$ 925 to post-employment benefits (R$ 836 in the nine months period ended September 30, 2016) and R$ 126 to others long-term benefits (R$ 123 in the nine months period ended September 30, 2016), and refers to the amount recognized on the accrual basis.
Transactions with entities under common control basically refers to transmission system charge paid by the Company’s subsidiaries to the direct or indirect subsidiaries of State Grid Corporation of China.
Transactions between related parties involving controlling shareholders, entities under common control or significant influence and joint ventures are as follows:
79 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Consolidated | |||||||
September 30, 2017 |
Nine months 2017 | ||||||
Asset |
|
Liability |
Income |
Expense | |||
Advances |
|||||||
BAESA – Energética Barra Grande S.A. |
- |
700 |
- |
- | |||
Foz do Chapecó Energia S.A. |
- |
992 |
- |
- | |||
ENERCAN - Campos Novos Energia S.A. |
- |
1,226 |
- |
- | |||
EPASA - Centrais Elétricas da Paraiba |
- |
446 |
- |
- | |||
Energy purchases and sales, and charges |
|||||||
Entities under common control |
- |
599 |
- |
65,075 | |||
BAESA – Energética Barra Grande S.A. |
- |
17,096 |
- |
50,527 | |||
Foz do Chapecó Energia S.A. |
- |
36,374 |
- |
284,399 | |||
ENERCAN - Campos Novos Energia S.A. |
802 |
51,746 |
6,568 |
211,011 | |||
EPASA - Centrais Elétricas da Paraiba |
- |
32,015 |
- |
94,768 | |||
Intangible assets, property, plant and equipment, materials and services rendered |
|||||||
BAESA – Energética Barra Grande S.A. |
221 |
- |
1,181 |
- | |||
Foz do Chapecó Energia S.A. |
2 |
- |
1,307 |
- | |||
ENERCAN - Campos Novos Energia S.A. |
152 |
- |
1,242 |
- | |||
EPASA - Centrais Elétricas da Paraíba S.A. |
341 |
- |
(544) |
- | |||
Intragroup loans |
|||||||
EPASA - Centrais Elétricas da Paraíba S.A. |
- |
- |
327 |
- | |||
Noncontrolling shareholder of CPFL Renováveis |
6,184 |
- |
185 |
- | |||
Dividends and interest on capital |
|||||||
ENERCAN - Campos Novos Energia S.A. |
106,237 |
- |
- |
- | |||
Others |
|||||||
Instituto CPFL |
- |
- |
- |
2,893 |
The comparative information below refers to the period in which the controlling shareholders were those prior to the change of control described in note 23.
Consolidated | |||||||
December 31, 2016 |
Nine months 2016 | ||||||
Asset |
|
Liability |
Income |
Expense | |||
Bank balance and short term investment |
|||||||
Banco Bradesco S.A. |
- |
- |
200,564 |
539 | |||
Banco do Brasil S.A. |
48,985 |
- |
1,302 |
1 | |||
Borrowings, Debentures and Derivatives |
|||||||
Banco Bradesco S.A. |
- |
- |
15,732 |
50,103 | |||
Banco do Brasil S.A. |
- |
4,257,562 |
- |
349,777 | |||
Banco BNP Paribas Brasil S.A |
5,126 |
- |
- |
43,305 | |||
Other financial transactions |
|
||||||
Banco Bradesco S.A. |
- |
- |
50 |
10,194 | |||
Banco do Brasil S.A. |
- |
962 |
156 |
4,781 | |||
Advances |
|||||||
BAESA – Energética Barra Grande S.A. |
- |
726 |
- |
- | |||
Foz do Chapecó Energia S.A. |
- |
1,025 |
- |
- | |||
ENERCAN - Campos Novos Energia S.A. |
- |
1,269 |
- |
- | |||
EPASA - Centrais Elétricas da Paraiba |
- |
462 |
- |
- |
80 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Energy purchases and sales, and charges |
|||||||
Afluente Transmissão de Energia Elétrica S.A. |
- |
53 |
- |
891 | |||
Aliança Geração de Energia S.A |
- |
1,183 |
3 |
38,479 | |||
Arizona 1 Energia Renovável S.A |
- |
- |
- |
720 | |||
Baguari I Geração de Energia Elétrica S.A. |
- |
6 |
- |
217 | |||
BRF Brasil Foods |
- |
- |
14,152 |
- | |||
Braskem S.A. |
- |
- |
- |
16,023 | |||
Caetite 2 Energia Renovável S.A. |
- |
- |
- |
662 | |||
Caetité 3 Energia Renovável S.A. |
- |
- |
- |
668 | |||
Calango 1 Energia Renovável S.A. |
- |
- |
- |
799 | |||
Calango 2 Energia Renovável S.A. |
- |
- |
- |
681 | |||
Calango 3 Energia Renovável S.A. |
- |
- |
- |
799 | |||
Calango 4 Energia Renovável S.A. |
- |
- |
- |
742 | |||
Calango 5 Energia Renovável S.A. |
- |
- |
- |
788 | |||
Companhia de Eletricidade do Estado da Bahia – COELBA |
743 |
121 |
14,440 |
- | |||
Companhia Energética de Pernambuco - CELPE |
692 |
20 |
7,295 |
183 | |||
Companhia Energética do Rio Grande do Norte - COSERN |
267 |
- |
2,262 |
1,035 | |||
Companhia Hidrelétrica Teles Pires S.A. |
- |
1,416 |
41 |
40,633 | |||
ELEB Equipamentos Ltda |
- |
- |
2,228 |
- | |||
Embraer |
- |
- |
5,816 |
- | |||
Energética Águas da Pedra S.A. |
- |
112 |
4 |
3,674 | |||
Estaleiro Atlântico Sul S.A. |
- |
- |
5,958 |
- | |||
Goiás Sul Geração de Enegia S.A. |
- |
- |
- |
133 | |||
Itapebi Geração de Energia S.A |
- |
- |
3 |
- | |||
Mel 2 Energia Renovável S.A. |
- |
- |
- |
533 | |||
NC ENERGIA S.A. |
451 |
2 |
19,505 |
9 | |||
Norte Energia S.A. |
1 |
4,585 |
11 |
27,279 | |||
Rio PCH I S.A. |
- |
209 |
- |
6,878 | |||
Santista Jeanswear S/A |
- |
- |
9,944 |
- | |||
Santista Work Solution S/A |
- |
- |
1,605 |
- | |||
SE Narandiba S.A. |
- |
2 |
- |
100 | |||
Serra do Facão Energia S.A. - SEFAC |
- |
557 |
- |
17,963 | |||
Termopernambuco S.A. |
- |
- |
5 |
- | |||
ThyssenKrupp Companhia Siderúrgica do Atlântico |
- |
- |
19,380 |
5,705 | |||
Vale Energia S.A. |
8,680 |
- |
76,732 |
- | |||
BAESA – Energética Barra Grande S.A. |
- |
5,642 |
- |
50,573 | |||
Foz do Chapecó Energia S.A. |
- |
35,018 |
468 |
264,616 | |||
ENERCAN - Campos Novos Energia S.A. |
387 |
50,526 |
6,478 |
209,243 | |||
EPASA - Centrais Elétricas da Paraiba |
- |
12,418 |
- |
63,494 | |||
Intangible assets, property, plant and equipment, materials and services rendered |
|||||||
Alpargatas S.A. |
168 |
- |
- |
- | |||
Brasil veículos Companhia de Seguros |
- |
- |
2 |
- | |||
Centro de Gestão de Meios de Pagamento S.A. - CGMP |
- |
- |
- |
2,699 | |||
Companhia de Saneamento Básico do Estado de São Paulo - SABESP |
4 |
42 |
167 |
33 | |||
Companhia Brasileira de Soluções e Serviços CBSS - Alelo |
- |
- |
- |
1,768 | |||
Concessionária Auto Raposo Tavares S.A. - CART |
- |
- |
- |
15 | |||
Concessionária de Rodovias do Oeste de São Paulo – ViaOeste S.A. |
- |
- |
- |
6 | |||
Concessionária do Sistema Anhanguera - Bandeirante S.A. |
86 |
- |
- |
3 | |||
Embraer |
- |
- |
7 |
- | |||
Estaleiro Atlântico Sul S.A. |
- |
- |
10 |
- | |||
HM 02 Empreendimento Imobiliário SPE Ltda. |
- |
- |
45 |
- | |||
Indústrias Romi S.A. |
4 |
- |
39 |
- | |||
InterCement Brasil S.A |
- |
- |
43 |
- | |||
Instituto CCR |
- |
- |
- |
19 | |||
Investco S.A |
- |
- |
- |
15,381 | |||
Logum Logística S.A. |
26 |
- |
702 |
- | |||
Mapfre Seguros Gerais S.A. |
- |
- |
60 |
56 | |||
NC Energia S.A. |
- |
- |
6 |
- | |||
SAMM - Sociedade de Atividades em Multimídia Ltda. |
- |
- |
845 |
- | |||
Tim Celular S.A. |
6 |
89 |
- |
- | |||
TOTVS S.A. |
- |
2 |
- |
44 | |||
Ultrafértil S.A |
- |
- |
14 |
- | |||
Vale Fertilizantes S.A |
- |
- |
147 |
- | |||
BAESA – Energética Barra Grande S.A. |
56 |
- |
1,236 |
- | |||
Foz do Chapecó Energia S.A. |
104 |
- |
1,406 |
- | |||
ENERCAN - Campos Novos Energia S.A. |
74 |
- |
1,309 |
- | |||
EPASA - Centrais Elétricas da Paraíba S.A. |
1,599 |
- |
427 |
- | |||
Intragroup loans |
|||||||
EPASA - Centrais Elétricas da Paraíba S.A. |
38,078 |
- |
6,834 |
- | |||
Noncontrolling shareholders of CPFL Renováveis |
9,067 |
- |
1,099 |
- | |||
Dividends and interest on capital |
|||||||
BAESA – Energética Barra Grande S.A. |
89 |
- |
- |
- | |||
Chapecoense Geração S.A. |
29,329 |
- |
- |
- | |||
ENERCAN - Campos Novos Energia S.A. |
40,983 |
- |
- |
- |
81 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 31 ) RISK MANAGEMENT
The risk management structure and the main risk factors that affect the Group’s business are disclosed in note 34 to the financial statements for the year ended December 31, 2016.
( 32 ) FINANCIAL INSTRUMENTS
The main financial instruments, classified in accordance with the Group’s accounting practices, are:
Consolidated | |||||||||||
September 30, 2017 | |||||||||||
Note |
Category |
Measurement |
Level (*) |
Carrying amount |
|
Fair value | |||||
Assets |
|||||||||||
Cash and cash equivalent |
5 |
(a) |
(2) |
Level 1 |
2,945,009 |
2,945,009 | |||||
Cash and cash equivalent |
5 |
(a) |
(2) |
Level 2 |
887,147 |
887,147 | |||||
Derivatives |
32 |
(a) |
(2) |
Level 2 |
588,572 |
588,572 | |||||
Derivatives - Zero-cost collar |
32 |
(a) |
(2) |
Level 3 |
63,102 |
63,102 | |||||
Concession financial asset - distribution |
10 |
(b) |
(2) |
Level 3 |
6,062,420 |
6,062,420 | |||||
10,546,250 |
10,546,250 | ||||||||||
Liabilities |
|||||||||||
Borrowings - principal and interest |
16 |
(c) |
(1) |
Level 2 (***) |
6,952,926 |
6,456,188 | |||||
Borrowings - principal and interest |
16 |
(a) |
(2) |
Level 2 |
4,820,626 |
4,820,626 | |||||
Debentures - Principal and interest |
17 |
(c) |
(1) |
Level 2 (***) |
8,047,395 |
8,021,430 | |||||
Derivatives |
32 |
(a) |
(2) |
Level 2 |
121,594 |
121,594 | |||||
19,942,541 |
19,419,838 | ||||||||||
(*) Refers to the hierarchy for fair value measurement |
|||||||||||
(**) As a result of the initial designation of this financial liability, the consolidated balances reported a loss of R$ 61,378 in the nine months period ended September 30, 2017 (loss of R$ 228,814 in the nine months period ended September 30, 2016). | |||||||||||
(***) Only for disclosure purposes, in accordance with CPC 40 (R1) / IFRS 7 |
|||||||||||
Key |
|||||||||||
Category: |
Measurement: |
||||||||||
(a) - Measured at fair value through profit or loss |
(1) - Measured at amortized cost |
||||||||||
(b) - Available for sale |
(2) - Measured at fair value |
||||||||||
(c) - Other financial liabilities |
The financial instruments for which the carrying amounts approximate the fair values, due to their nature, at the end of the reporting period are:
· Financial assets: (i) consumers, concessionaires and licensees, (ii) leases, (iii) intercompany loans between associates, subsidiaries and parent company, (iv) receivables – Eletrobras, (v) concession financial asset – transmission companies, (vi) pledges, funds and restricted deposits, (vii) services rendered to third parties, (viii) collection agreements and (ix) sector financial asset;
· Financial liabilities: (i) trade payables, (ii) regulatory charges, (iii) use of public asset, (iv) consumers and concessionaires, (v) FNDCT/EPE/PROCEL, (vi) collection agreement, (vii) reversal fund, (viii) payables for business combination, (ix) tariff discounts – CDE and (x) sector financial liability.
In addition, in the nine months period ended September 30, 2017 there were no transfers between the fair value hierarchy levels.
a) Measurement of financial instruments
As mentioned in note 4, the fair value of a security corresponds to its maturity value (redemption value) adjusted to present value by the discount factor (relating to the maturity date of the security) obtained from the market interest curve, in Brazilian reais.
CPC 40 (R1) and IFRS 7 require the classification into a three-level hierarchy for fair value measurement of financial instruments, based on observable and unobservable inputs related to the measurement of a financial instrument at the measurement date.
CPC 40 (R1) and IFRS 7 also define observable inputs as market data obtained from independent sources and unobservable inputs as those that reflect market assumptions.
The three levels of the fair value hierarchy are:
Level 1: Quoted prices in an active market for identical instruments;
82 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Level 2: Observable inputs other than quoted prices in an active market that are observable for the asset or liability, directly (i.e. as prices) or indirectly (i.e. derived from prices);
Level 3: Instruments whose relevant factors are not observable market inputs.
As the distribution concessionaries classified the respective concession financial assets as available-for-sale, the relevant factors for fair value measurement are not publicly observable. Therefore, the fair value hierarchy classification is level 3. The movements and respective gains (losses) in profit for or loss for the nine months period ended September 30, 2017 are R$ 97,155 (R$ 209,683 in the nine months period ended September 30, 2016) and the main assumptions are described in note 10.
Additionally, the main assumptions used in the fair value measurement of the zero-cost collar derivative, the fair value hierarchy of which is Level 3, are disclosed in note 32 b.1.
The Company recognizes in the consolidated, in “Investments at cost”, the 5.94% interest held by the indirect subsidiary Paulista Lajeado Energia S.A. in the total capital of Investco S.A., comprising 28,154,140 common shares and 18,593,070 preferred shares. As this company does not have shares listed on the stock exchange and considering that the main objective of its operations is to generate electric energy that will be traded by the shareholders holding the concession, the Company elected to recognize the investment at cost.
b) Derivatives
The Group has the policy of using derivatives to hedge against the risks of fluctuations in exchange and interest rates, without any speculative purposes. The Group has currency hedges in a volume compatible with the net exchange exposure, including all assets and liabilities tied to exchange rate changes.
The hedging instruments entered into by the Group are currency or interest rate swaps with no leverage component, margin call requirements or daily or periodic adjustments. Furthermore, in 2015 the subsidiary CPFL Geração contracted a zero-cost collar derivative (see item b.1 below).
As a large part of the derivatives entered into by the subsidiaries have their terms fully aligned with the hedged debts, and in order to obtain more relevant and consistent accounting information through the recognition of income and expenses, these debts were designated for the accounting recognition at fair value (note 16). Other debts that have terms different from the derivatives contracted as a hedge continue to be recognized at amortized cost. Furthermore, the Group did not adopt hedge accounting for transactions with derivative instruments.
At September 30, 2017, the Group had the following swap transactions, all traded on the over-the-counter market:
83 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Fair values (carrying amounts) |
||||||||||||||||
Company / strategy / counterparts |
Assets |
Liabilities |
Fair value, net |
Values at cost, net |
Gain (loss) on mark to market |
Currency / index |
Maturity range |
Notional | ||||||||
Derivatives to hedge debts designated at fair value |
||||||||||||||||
Exchange rate hedge |
||||||||||||||||
CPFL Paulista |
||||||||||||||||
Bank of Tokyo-Mitsubishi |
31,345 |
- |
31,345 |
31,214 |
131 |
Dollar |
Mar 2019 |
117,400 | ||||||||
Bank of America Merrill Lynch |
39,006 |
- |
39,006 |
37,325 |
1,681 |
Dollar |
Sep 2018 |
106,020 | ||||||||
Bank of America Merrill Lynch |
44,118 |
- |
44,118 |
42,721 |
1,397 |
Dollar |
Mar 2019 |
116,600 | ||||||||
J.P.Morgan |
22,059 |
- |
22,059 |
21,361 |
698 |
Dollar |
Mar 2019 |
58,300 | ||||||||
Bradesco |
8,944 |
- |
8,944 |
8,826 |
118 |
Dollar |
Jan 2018 |
54,214 | ||||||||
Bradesco |
36,981 |
- |
36,981 |
36,439 |
542 |
Dollar |
Jan 2018 |
173,459 | ||||||||
J.P.Morgan |
11,515 |
- |
11,515 |
11,231 |
284 |
Dollar |
Jan 2019 |
67,613 | ||||||||
BNP Paribas |
10,448 |
- |
10,448 |
10,233 |
215 |
Euro |
Jan 2018 |
63,896 | ||||||||
Bank of Tokyo-Mitsubishi |
14,281 |
- |
14,281 |
15,646 |
(1,365) |
Dollar |
Feb 2020 |
142,735 | ||||||||
Bank of America Merrill Lynch |
71,598 |
- |
71,598 |
70,026 |
1,572 |
Dollar |
Feb 2018 |
405,300 | ||||||||
Bank of America Merrill Lynch |
- |
(13,116) |
(13,116) |
(15,402) |
2,287 |
Dollar |
Oct 2018 |
329,500 | ||||||||
Bradesco |
- |
(4,761) |
(4,761) |
(6,232) |
1,471 |
Dollar |
May 2021 |
59,032 | ||||||||
Bank of America Merrill Lynch |
- |
(4,368) |
(4,368) |
(6,215) |
1,847 |
Dollar |
May 2021 |
59,032 | ||||||||
Citibank |
- |
(4,550) |
(4,550) |
(6,223) |
1,672 |
Dollar |
May 2021 |
59,032 | ||||||||
Citibank |
- |
(4,506) |
(4,506) |
(6,232) |
1,726 |
Dollar |
May 2021 |
59,032 | ||||||||
290,295 |
(31,301) |
258,994 |
244,719 |
14,274 |
||||||||||||
CPFL Piratininga |
||||||||||||||||
Citibank |
42,988 |
- |
42,988 |
41,763 |
1,225 |
Dollar |
Mar 2019 |
117,250 | ||||||||
Bradesco |
24,282 |
- |
24,282 |
23,974 |
308 |
Dollar |
Apr 2018 |
55,138 | ||||||||
J.P.Morgan |
24,288 |
- |
24,288 |
23,976 |
312 |
Dollar |
Apr 2018 |
55,138 | ||||||||
Citibank |
29,336 |
- |
29,336 |
27,764 |
1,572 |
Dollar |
Jan 2020 |
169,838 | ||||||||
BNP Paribas |
28,731 |
- |
28,731 |
28,139 |
591 |
Euro |
Jan 2018 |
175,714 | ||||||||
Bradesco |
- |
(4,761) |
(4,761) |
(6,232) |
1,471 |
Dollar |
May 2021 |
59,032 | ||||||||
Bank of America Merrill Lynch |
- |
(4,368) |
(4,368) |
(6,215) |
1,847 |
Dollar |
May 2021 |
59,032 | ||||||||
Citibank |
- |
(4,550) |
(4,550) |
(6,223) |
1,672 |
Dollar |
May 2021 |
59,032 | ||||||||
Bank of America Merrill Lynch |
- |
(2,105) |
(2,105) |
(3,110) |
1,004 |
Dollar |
May 2021 |
29,516 | ||||||||
Citibank |
- |
(2,253) |
(2,253) |
(3,116) |
863 |
Dollar |
May 2021 |
29,516 | ||||||||
149,626 |
(18,037) |
131,588 |
120,723 |
10,866 |
||||||||||||
RGE |
||||||||||||||||
Bank of Tokyo-Mitsubishi |
20,742 |
- |
20,742 |
20,723 |
19 |
Dollar |
Apr 2018 |
36,270 | ||||||||
Bank of Tokyo-Mitsubishi |
92,399 |
- |
92,399 |
92,147 |
252 |
Dollar |
May 2018 |
168,346 | ||||||||
Bradesco |
10,323 |
- |
10,323 |
10,304 |
19 |
Dollar |
Oct 2017 |
32,715 | ||||||||
Bradesco |
- |
(4,761) |
(4,761) |
(6,232) |
1,471 |
Dollar |
May 2021 |
59,032 | ||||||||
Bank of America Merrill Lynch |
- |
(4,368) |
(4,368) |
(6,215) |
1,847 |
Dollar |
May 2021 |
59,032 | ||||||||
Citibank |
- |
(4,550) |
(4,550) |
(6,223) |
1,672 |
Dollar |
May 2021 |
59,032 | ||||||||
Bank of America Merrill Lynch |
- |
(4,211) |
(4,211) |
(6,219) |
2,009 |
Dollar |
May 2021 |
59,032 | ||||||||
123,464 |
(17,890) |
105,574 |
98,285 |
7,289 |
||||||||||||
CPFL Jaguari |
||||||||||||||||
Scotiabank |
- |
(706) |
(706) |
(770) |
64 |
Dollar |
Jul 2019 |
16,484 | ||||||||
CPFL Sul Paulista |
||||||||||||||||
Scotiabank |
- |
(706) |
(706) |
(770) |
64 |
Dollar |
Jul 2019 |
16,484 | ||||||||
CPFL Leste Paulista |
||||||||||||||||
Scotiabank |
- |
(706) |
(706) |
(770) |
64 |
Dollar |
Jul 2019 |
16,484 | ||||||||
CPFL Santa Cruz |
||||||||||||||||
Scotiabank |
- |
(706) |
(706) |
(770) |
64 |
Dollar |
Jul 2019 |
16,484 | ||||||||
CPFL Paulista Lajeado |
||||||||||||||||
Itaú |
- |
(297) |
(297) |
(404) |
106 |
Dollar |
Mar 2018 |
35,000 | ||||||||
CPFL Brasil |
||||||||||||||||
Scotiabank |
- |
(2,623) |
(2,623) |
(2,746) |
123 |
Dollar |
Aug 2018 |
45,360 | ||||||||
Scotiabank |
55 |
- |
55 |
203 |
(147) |
Dollar |
Sep 2020 |
11,000 | ||||||||
Scotiabank |
- |
(1,159) |
(1,159) |
3,573 |
(4,732) |
Dollar |
Sep 2020 |
238,989 | ||||||||
55 |
(3,782) |
(3,726) |
1,029 |
(4,755) |
||||||||||||
CPFL Geração |
||||||||||||||||
Scotiabank |
- |
(5,013) |
(5,013) |
(5,464) |
451 |
Dollar |
Jul 2019 |
117,036 | ||||||||
Votorantim |
- |
(6,257) |
(6,257) |
(9,070) |
2,812 |
Dollar |
Jun 2019 |
104,454 | ||||||||
Bradesco |
- |
(308) |
(308) |
(808) |
499 |
Dollar |
Sep 2019 |
32,636 | ||||||||
Citibank |
- |
(13,416) |
(13,416) |
(15,467) |
2,051 |
Dollar |
Sep 2020 |
397,320 | ||||||||
Scotiabank |
- |
(18,026) |
(18,026) |
(18,513) |
487 |
Dollar |
Dec 2019 |
174,525 | ||||||||
- |
(43,020) |
(43,020) |
(49,320) |
6,301 |
||||||||||||
Subtotal |
563,439 |
(117,151) |
446,288 |
411,954 |
34,334 |
|||||||||||
Derivatives to hedge debts not designated at fair value |
||||||||||||||||
Exchange rate hedge |
||||||||||||||||
CPFL Geração |
||||||||||||||||
J.P.Morgan |
- |
(4,443) |
(4,443) |
(4,813) |
370 |
Dollar |
Dec 2018 |
37,291 | ||||||||
Price index hedge |
||||||||||||||||
CPFL Geração |
||||||||||||||||
Santander |
9,933 |
- |
9,933 |
7,978 |
1,955 |
IPCA |
Apr 2019 |
35,235 | ||||||||
J.P.Morgan |
9,933 |
- |
9,933 |
7,978 |
1,955 |
IPCA |
Apr 2019 |
35,235 | ||||||||
19,865 |
- |
19,865 |
15,956 |
3,909 |
||||||||||||
Interest rate hedge (1) |
||||||||||||||||
CPFL Paulista |
||||||||||||||||
J.P.Morgan |
1,059 |
- |
1,059 |
70 |
990 |
CDI |
Feb 2021 |
300,000 | ||||||||
Votorantim |
362 |
- |
362 |
24 |
338 |
CDI |
Feb 2021 |
100,000 | ||||||||
Santander |
382 |
- |
382 |
25 |
357 |
CDI |
Feb 2021 |
105,000 | ||||||||
1,803 |
- |
1,803 |
119 |
1,684 |
||||||||||||
CPFL Piratininga |
||||||||||||||||
Votorantim |
511 |
- |
511 |
34 |
477 |
CDI |
Feb 2021 |
135,000 | ||||||||
Santander |
383 |
- |
383 |
26 |
357 |
CDI |
Feb 2021 |
100,000 | ||||||||
894 |
- |
894 |
60 |
834 |
||||||||||||
RGE |
||||||||||||||||
Votorantim |
590 |
- |
590 |
39 |
551 |
CDI |
Feb 2021 |
170,000 | ||||||||
CPFL Geração |
||||||||||||||||
Votorantim |
1,980 |
- |
1,980 |
100 |
1,880 |
CDI |
Aug 2020 |
460,000 | ||||||||
Subtotal |
25,132 |
(4,443) |
20,690 |
11,461 |
9,229 |
|||||||||||
Other derivatives (2) |
||||||||||||||||
CPFL Geração |
||||||||||||||||
Itaú |
21,929 |
- |
21,929 |
1,990 |
19,939 |
Dollar |
Sep 2020 |
21,548 | ||||||||
Votorantim |
18,260 |
- |
18,260 |
1,676 |
16,584 |
Dollar |
Sep 2020 |
21,548 | ||||||||
Santander |
22,913 |
- |
22,913 |
1,968 |
20,946 |
Dollar |
Sep 2020 |
27,095 | ||||||||
Subtotal |
63,102 |
- |
63,102 |
5,633 |
57,469 |
|||||||||||
Total |
651,674 |
(121,594) |
530,080 |
429,048 |
101,032 |
|||||||||||
Current |
389,732 |
(4,464) |
||||||||||||||
Noncurrent |
261,942 |
(117,130) |
||||||||||||||
For further details on terms and information on debts and debentures, see notes 16 and 17 |
||||||||||||||||
(1) The interest rate hedge swaps have half-yearly validity, so the notional value reduces according to the amortization of the debt. |
||||||||||||||||
(2) Due to the characteristics of this derivative (zero-cost collar), the notional amount is presented in U.S. dollar. |
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(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
As mentioned above, certain subsidiaries elected to mark to market debts for which they have fully debt-related derivatives instruments (note 16).
The Group has recognized gains and losses on their derivatives. However, as these derivatives are used as a hedging instrument, these gains and losses minimized the impacts of fluctuations in exchange and interest rates on the hedged debts. For the quarters and nine months periods ended September 30, 2017 and 2016, the derivatives generated the following impacts on the consolidated profit or loss, recognized in the line item of Finance expenses on adjustment for inflation and exchange rate changes:
Gain (Loss) | |||||||||||
2017 |
2016 |
| |||||||||
Company |
Hedged risk / transaction |
Account |
3rd Quarter 2017 |
Nine months 2017 |
3rd Quarter 2016 |
Nine months 2016 | |||||
CPFL Energia |
Exchange variation |
Finance expense - swap transaction |
- |
- |
(4,584) |
(76,202) | |||||
CPFL Energia |
Mark to Market |
Finance expense - fair value adjustment |
- |
- |
49 |
2,319 | |||||
CPFL Paulista |
Interest rate variation |
Finance expense - swap transaction |
157 |
(10) |
(750) |
(736) | |||||
CPFL Paulista |
Exchange variation |
Finance expense - swap transaction |
(97,613) |
(155,275) |
(72,032) |
(768,061) | |||||
CPFL Paulista |
Mark to Market |
Finance expense - fair value adjustment |
(2,164) |
6,244 |
42,902 |
105,083 | |||||
CPFL Piratininga |
Interest rate variation |
Finance expense - swap transaction |
82 |
22 |
(208) |
(473) | |||||
CPFL Piratininga |
Exchange variation |
Finance expense - swap transaction |
(41,126) |
(50,700) |
(28,481) |
(332,090) | |||||
CPFL Piratininga |
Mark to Market |
Finance expense - fair value adjustment |
(943) |
2,936 |
13,746 |
40,220 | |||||
RGE |
Interest rate variation |
Finance expense - swap transaction |
50 |
11 |
(436) |
(432) | |||||
RGE |
Exchange variation |
Finance expense - swap transaction |
(25,560) |
(44,590) |
(21,890) |
(243,907) | |||||
RGE |
Mark to Market |
Finance expense - fair value adjustment |
(1,075) |
2,435 |
8,410 |
43,334 | |||||
CPFL Geração |
Interest rate variation |
Finance expense - swap transaction |
41 |
(183) |
2,949 |
4,131 | |||||
CPFL Geração |
Exchange variation |
Finance expense - swap transaction |
(36,600) |
(64,284) |
(30,312) |
(118,427) | |||||
CPFL Geração |
Mark to Market |
Finance expense - fair value adjustment |
12,578 |
16,794 |
(20,849) |
45,904 | |||||
CPFL Santa Cruz |
Exchange variation |
Finance expense - swap transaction |
(814) |
(1,385) |
(789) |
(6,698) | |||||
CPFL Santa Cruz |
Mark to Market |
Finance expense - fair value adjustment |
11 |
143 |
(94) |
201 | |||||
CPFL Leste Paulista |
Exchange variation |
Finance expense - swap transaction |
(814) |
(1,385) |
(789) |
(789) | |||||
CPFL Leste Paulista |
Mark to Market |
Finance expense - fair value adjustment |
11 |
143 |
(27) |
(27) | |||||
CPFL Sul Paulista |
Exchange variation |
Finance expense - swap transaction |
(814) |
(1,385) |
(789) |
(7,289) | |||||
CPFL Sul Paulista |
Mark to Market |
Finance expense - fair value adjustment |
11 |
143 |
(66) |
223 | |||||
CPFL Jaguari |
Exchange variation |
Finance expense - swap transaction |
(814) |
(1,385) |
(789) |
(9,948) | |||||
CPFL Jaguari |
Mark to Market |
Finance expense - fair value adjustment |
11 |
143 |
(27) |
326 | |||||
Paulista Lajeado Energia |
Exchange variation |
Finance expense - swap transaction |
(1,789) |
(3,012) |
(1,288) |
(10,480) | |||||
Paulista Lajeado Energia |
Mark to Market |
Finance expense - fair value adjustment |
106 |
260 |
479 |
1,734 | |||||
CPFL Brasil |
Exchange variation |
Finance expense - swap transaction |
1,518 |
(79) |
(1,622) |
(13,084) | |||||
CPFL Brasil |
Mark to Market |
Finance expense - fair value adjustment |
(4,916) |
(4,760) |
710 |
2,449 | |||||
CPFL Serviços |
Exchange variation |
Finance expense - swap transaction |
- |
- |
(342) |
(3,327) | |||||
CPFL Serviços |
Mark to Market |
Finance expense - fair value adjustment |
- |
- |
215 |
440 | |||||
(200,464) |
(299,160) |
(116,702) |
(1,345,605) |
b.1) Zero-cost collar derivative transactions entered into by CPFL Geração
In 2015, the subsidiary CPFL Geração entered into a transaction involving put options and call options in US$, both having the same institution as counterpart, and that combined are featured as a transaction usually known as zero-cost collar. Entering into this transaction does not have any speculative purpose, inasmuch as it is aimed at minimizing any negative impacts on future revenue of the joint venture ENERCAN, which has electric energy sale agreements with annual adjustment of part of the tariff based on the dollar variation. In addition, according to Management’s view, the scenario in 2015 was favorable to enter into this type of financial instrument, considering the high volatility implicit in dollar options and the fact that there is no initial cost for this type of transaction.
The total amount contracted was US$ 111,817, with due dates between October 1, 2015 and September 30, 2020. At September 30, 2017, the total amount contracted was US$ 70,191, considering the options already settled until this date. The strike prices of the dollar options vary from R$ 4.20 to R$ 4.40 for put options and from R$ 5.40 to R$7.50 for call options.
These options were measured at fair value in a recurring manner, as required by IAS 39/CPC 38. The fair value of the options that are part of this transaction was calculated based on the following assumptions:
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(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Valuation technique(s) and key information |
We used the Black Scholes Option Pricing Model, which aims to obtain the fair price of the options involving the following variables: value of the asset, strike price of the option, interest rate, term and volatility. |
Significant unobservable inputs |
Volatility determined based on the average market pricing calculations, future dollar and other variables applicable to this specific transaction, with average variation of 17.6%. |
Relationship between unobservable inputs and fair value (sensitivity) |
A slight rise in long-term volatility, analyzed separately, would result in an insignificant increase in fair value. If the volatility were 10% higher and all the other variables remained constant, the net carrying amount (asset) would increase by R$ 591, resulting in a net asset of R$ 63,693. |
The following table reconciles the opening and closing balances of the call and put options for the nine months period ended September 30, 2017, as required by IFRS 13/CPC 46:
Consolidated | ||||||
Asset |
Liability |
Net | ||||
At December 31, 2016 |
57,715 |
- |
57,715 | |||
Measurement at fair value |
22,126 |
- |
22,126 | |||
Net cash, received from settlement of flows |
(16,739) |
- |
(16,739) | |||
At September 30, 2017 |
63,102 |
- |
63,102 |
The fair value measurement of these financial instruments was recognized as finance income in the statement of profit or loss for the period, and no effects were recognized in other comprehensive income.
c) Sensitivity analysis
In compliance with CVM Instruction No. 475/2008, the Group performed sensitivity analyses of the main risks to which their financial instruments (including derivatives) are exposed, mainly comprising changes in exchange and interest rates.
When the risk exposure is considered asset, the risk to be taken into account is a reduction in the pegged indexes, due to a consequent negative impact on the Group’s profit or loss. Similarly, if the risk exposure is considered liability, the risk is of an increase in the pegged indexes and the consequent negative effect on the profit or loss. The Group therefore quantify the risks in terms of the net exposure of the variables (dollar, euro, CDI, IGP-M, IPCA, TJLP and SELIC), as shown below:
c.1) Changes in exchange rates
Considering that the net exchange rate exposure at September 30, 2017 is maintained, the simulation of the effects by type of financial instrument for three different scenarios would be:
Consolidated | ||||||||||
Decrease (increase) | ||||||||||
Instruments |
Exposure |
Risk |
Exchange depreciation (b) |
Currency appreciation of 25% (c) |
Currency appreciation of 50% (c) | |||||
Financial liability instruments |
(4,590,320) |
(202,710) |
995,547 |
2,193,805 | ||||||
Derivatives - Plain Vanilla Swap |
4,641,218 |
204,958 |
(1,006,586) |
(2,218,130) | ||||||
50,898 |
drop in the dollar |
2,248 |
(11,039) |
(24,325) | ||||||
Financial liability instruments |
(282,542) |
(18,871) |
56,482 |
131,835 | ||||||
Derivatives - Plain Vanilla Swap |
283,708 |
18,949 |
(56,715) |
(132,379) | ||||||
1,165 |
drop in the euro |
78 |
(233) |
(544) | ||||||
Total |
52,063 |
2,326 |
(11,272) |
(24,869) | ||||||
Decrease (increase) | ||||||||||
Instruments |
Exposure |
Risk |
Currency depreciation (b) |
Currency appreciation of 25% (c) |
Currency appreciation of 50% (c) | |||||
Derivatives zero-cost collar |
70,191 |
raise in the dollar |
(67,171) |
(90,702) |
(114,233) |
(a) The exchange rate considered at 9/30/2017 was R$ 3.17 per US$ 1.00 and R$ 3.74 per € 1.00.
(b) As per the exchange rate curves obtained from information made available by B3 S.A., with the exchange rate being considered at R$ 3.31 and R$ 3.99, and the currency depreciation at 4.42% and 6.68%, for US$ and €, respectively.
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(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
(c) As required by CVM Instruction No. 475/2008, the percentage increases in the ratios applied refer to the information made available by the B3 S.A..
(d) Owing to the characteristics of this derivative (zero-cost collar), the notional amount is presented in US$.
Except for the zero-cost collar, as the net exchange exposure of the dollar and euro for the other derivative instruments is an asset, the risk is a drop in the dollar and euro, therefore, the exchange rate is appreciated by 25% and 50% in relation to the probable exchange rate.
c.2) Changes in interest rates
Assuming that: (i) the scenario of net exposure of the financial instruments indexed to floating interest rates at September 30, 2017 is maintained, and (ii) the respective annual indexes accumulated in the last 12 months, for this base date, remain stable (CDI 8.14% p.a.; IGP-M -1.45% p.a.; TJLP 7.00% p.a.; IPCA 2.47% p.a. and SELIC 11.40% p.a.), the effects that would be recognized in the consolidated financial statements for the next 12 months would be a net finance cost of R$ 920,804 (expenses of CDI R$ 721,153, TJLP R$ 305,251 and SELIC R$ 32,711, and finance income of IGP-M R$ 857 and IPCA R$ 137,454). In the event of fluctuations in the indexes according to the three scenarios defined, the amount of the net finance cost would be impacted by:
Consolidated | ||||||||||
Instruments |
Exposure (a) |
Risk |
Scenario I (a) |
Raising/Drop index by 25% (b) |
Raising/Drop index by 50% (b) | |||||
Financial asset instruments |
4,529,045 |
(48,461) |
31,590 |
111,641 | ||||||
Financial liability instruments |
(8,837,495) |
94,561 |
(61,642) |
(217,844) | ||||||
Derivatives - Plain Vanilla Swap |
(4,550,920) |
48,695 |
(31,743) |
(112,180) | ||||||
(8,859,370) |
CDI apprec |
94,795 |
(61,794) |
(218,383) | ||||||
Financial liability instruments |
(59,096) |
IGP-M apprec |
(2,612) |
(3,051) |
(3,490) | |||||
Financial liability instruments |
(4,360,731) |
TJLP apprec |
- |
(76,313) |
(152,626) | |||||
Financial liability instruments |
(590,442) |
(7,262) |
(1,801) |
3,661 | ||||||
Derivatives - Plain Vanilla Swap |
92,972 |
1,144 |
284 |
(576) | ||||||
Concession financial asset |
6,062,420 |
74,568 |
18,490 |
(37,587) | ||||||
5,564,950 |
drop in the IPCA |
68,449 |
16,973 |
(34,503) | ||||||
Financial liability instruments |
(107,412) |
4,554 |
2,632 |
709 | ||||||
Sectorial financial assets and liabilities |
(179,526) |
7,612 |
4,398 |
1,185 | ||||||
(286,938) |
SELIC apprec. |
12,166 |
7,030 |
1,894 | ||||||
Total |
(8,001,185) |
172,798 |
(117,155) |
(407,108) |
(a) The CDI, IGP-M, TJLP, IPCA and SELIC indexes considered of: 7.07%, 2.97%, 7.00%, 3.70% and 7.16%, respectively, were obtained from information available in the market.
(b) As required by CVM Instruction 475/2008, the percentages of increase or decrease were applied to the indexes in scenario I.
( 33 ) NON-CASH TRANSACTIONS
Parent Company |
Consolidated | |||||||
September 30, 2017 |
September 30, 2016 |
September 30, 2017 |
September 30, 2016 | |||||
Transactions originated from busines combination |
||||||||
Concession financial asset |
- |
- |
(12,338) |
- | ||||
Intangible assets |
- |
- |
(22,165) |
- | ||||
Property, plant and equipment |
- |
- |
(4,800) |
- | ||||
- |
- |
(39,303) |
- | |||||
Other transactions |
||||||||
Capital increase in investees |
- |
52,680 |
- |
- | ||||
Interest capitalized in property, plant and equipment |
- |
- |
27,755 |
43,568 | ||||
Interest capitalized in concession intangible asset - distribution infrastructure |
- |
- |
14,460 |
8,864 | ||||
Transfer between property, plant and equipment and other assets |
- |
- |
(39,257) |
12,791 |
The balances disclosed in the "Transactions originated from business combination " lines refer to the complementary amounts related to the acquisition of RGE Sul, which final recognition occurred on September 30, 2017, according to note 12.5.
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(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
( 34 ) SIGNIFICANT FACT AND EVENTS AFTER THE REPORTING PERIOD
34.1 Annual tariff adjustment (“RTA”) – CPFL Piratininga
On October 17, 2017, the ANEEL’s Collegiate Body approved the 2017 annual tariff adjustment (“RTA”) of subsidiary CPFL Piratininga. The tariffs were adjusted on average 7.69%, of which 6.33% is related to the economic adjustment and 1.37% related to financial components, in relation to the last tariff event (RTA/2016). The average effect to be perceived by the consumers is 17.28% (as disclosed in the Ratification Resolution), when compared with the RTA occurred in October 2016. The new tariffs are effective from October 23, 2017 to October 22, 2018.
34.2 Mandatory Tender Offer
As presented in the note 38.5 of financial statements at December 31, 2016, State Grid Brazil Power Participações will conduct a mandatory tender offer resulting from transfer of control for acquisition of all the common shares held by the remaining shareholders of CPFL (“Mandatory Tender Offer”).
At March 27, 2017, the Company’s extraordinary general meeting decided on the (i) selection of Credit Suisse (Brasil) S.A. for determining the Company’s economic value; (ii) cancelation of the Company’s listing with CVM as issuer of securities registered under the category “A”, and their conversion into category “B”; and (iii) Company’s withdrawal from the Novo Mercado.
On June 12, 2017, CVM requested State Grid to file the appraisal reports relating to the Mandatory Tender Offers, or alternatively, file the adjusted offering documentation foreseeing only the Mandatory Tender Offers, through direct sale of the Company’s control or indirect sale of the CPFL Renováveis’ control. In a material fact disclosed on July 7, 2017, State Grid informed that it had decided to proceed only with the Mandatory Tender Offers for the sale of control of the Companies required, in relation to each of the Companies.
On October 30 and 31, 2017, State Grid Brazil disclosed a Material Fact reporting that:
(i) on October 26, 2017, the CVM formally approved all relevant documents and the continuity of the Mandatory Tender Offer, pursuant to article 254-A of Law 6,404, article 29 of CVM Instruction 361, the Novo Mercado Listing Rules of B3 S.A. – Brasil, Bolsa, Balcão and the CPFL Energia’s bylaws;
(ii) as a result of such approval, in accordance with article 11 of the CVM Instruction 361/02, State Grid Brazil published on October 31, 2017, the Form of Notice of the Offer, with its applicable detailed terms and conditions.
The Offer is valid for a period of 30 (thirty) days, beginning on October 31, 2017, the date of publication of the Notice, and ending on November 30, 2017, the date set forth in the Invitation to Bid.
34.3 Issue of debentures – CPFL Paulista
At the Board of Directors' Meeting held on August 21, 2017, the 8th issue of simple debentures of the subsidiary CPFL Paulista, not convertible into shares, unsecured typed, with a personal guarantee, in up to 3 (three) series, was approved. On October 24, 2017 the amount of R$ 700,000 was fully paid in.
34.4 Issue of debentures – RGE Sul
At the Board of Directors' Meeting held on August 21, 2017, the 5th issue of simple debentures of the subsidiary CPFL Paulista, not convertible into shares, unsecured typed, with a personal guarantee, in up to 3 (three) series, was approved, in the total amount of R$ 300,000. On October 24, 2017 the subsidiary disclosed a Market Notice related to the suspension of the analysis of the application for registration of the public offering of the 5th issue of debentures, for a period of 30 business days from the date of the Market Notice release.
88 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Shareholders of CPFL Energia S/A holding more than 5% of the shares of the same type and class, as of September 30, 2017:
Number of shares | ||||
September 30, 2017 | ||||
Shareholders |
Common shares |
Interest % | ||
State Grid Brazil Power Participações S.A. |
322,078,613 |
31.64% | ||
ESC Energia S.A. |
234,086,204 |
23.00% | ||
Members of Executive Board and Board of Directors |
23,516 |
0.00% | ||
Other shareholders |
461,726,413 |
45.36% | ||
Total |
1,017,914,746 |
100.00% | ||
Quantity and characteristic of securities held by directly or indirectly Controlling Shareholders, Executive Officers, Board of Directors, Fiscal Council and Free Float, as of September 30, 2017 and December 31, 2016:
September 30, 2017 |
December 31, 2016 | |||||||
Shareholders |
Common shares |
Interest - % |
Common shares |
Interest - % | ||||
Controlling shareholders |
556,164,817 |
54.64 |
693,038,168 |
68.08 | ||||
Administrator |
- |
- |
- |
- | ||||
Members of the Executive Officers |
23,516 |
0.00 |
34,250 |
0.00 | ||||
Members of the Board of Directors |
- |
- |
- |
- | ||||
Fiscal Council Members |
- |
- |
- |
- | ||||
Other shareholders |
461,726,413 |
45.36 |
324,842,328 |
31.91 | ||||
Total |
1,017,914,746 |
100.00 |
1,017,914,746 |
100.00 | ||||
Outstanding shares - free float |
461,726,413 |
45.36 |
324,842,328 |
31.91 |
89 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
SHAREHOLDING STRUCTURE |
9 months of 2017 |
| |||||||||
CPFL ENERGIA S/A |
Per units shares |
Date of last change | |||||||||
# |
1 - SHAREHOLDERS OF THE COMPANY |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
556,164,817 |
54.64% |
100.00% |
- |
0.00% |
0.00% |
556,164,817 |
54.64% |
|
1.1 |
Esc Energia S.A. |
15.146.011/0001-51 |
234,086,204 |
23.00% |
100.00% |
- |
0.00% |
0.00% |
234,086,204 |
23.00% |
January 23, 2017 |
1.2 |
State Grid Brazil Power Participações Ltda. |
26.002.119/0001-97 |
322,078,613 |
31.64% |
100.00% |
- |
0.00% |
0.00% |
322,078,613 |
31.64% |
January 23, 2017 |
|
Noncontrolling shareholders |
|
461,749,929 |
45.36% |
100.00% |
- |
0.00% |
0.00% |
461,749,929 |
45.36% |
|
1.3 |
Caixa de Previdência dos Funcionários do Banco do Brasil - Previ |
33.754.482/0001-24 |
98,589,229 |
9.69% |
100.00% |
- |
0.00% |
0.00% |
98,589,229 |
9.69% |
January 23, 2017 |
1.4 |
BNDES Participações S.A. |
00.383.281/0001-09 |
68,592,097 |
6.74% |
100.00% |
- |
0.00% |
0.00% |
68,592,097 |
6.74% |
April 29, 2016 |
1.5 |
Bradespar S.A. |
08.397.763/0001-20 |
53,464,240 |
5.25% |
100.00% |
- |
0.00% |
0.00% |
53,464,240 |
5.25% |
August 15, 2017 |
1.6 |
Membros do Conselho de Administração |
07.341.926/001-90 |
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
April 29, 2016 |
1.7 |
Membros da Diretoria Executiva |
|
23,516 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
23,516 |
0.00% |
May 31, 2017 |
1.8 |
Demais Acionistas |
|
241,080,847 |
23.68% |
100.00% |
- |
0.00% |
0.00% |
241,080,847 |
23.68% |
|
|
Total |
|
1,017,914,746 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,017,914,746 |
100.00% |
|
|
2 - Entity: 1.1 Esc Energia S.A. |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
1,042,392,615 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,042,392,615 |
100.00% |
|
1.1.1 |
State Grid Brazil Power Participações Ltda. |
26.002.119/0001-97 |
1,042,392,615 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,042,392,615 |
100.00% |
January 23, 2017 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.1.2 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
1,042,392,615 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,042,392,615 |
100.00% |
|
|
3 - Entity: 1.2 State Grid Brazil Power Participações S.A. |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
14,299,999,999 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
14,299,999,999 |
100.00% |
|
1.2.1 |
International Grid Holdings Limited |
|
14,299,999,999 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
14,299,999,999 |
100.00% |
July 31, 2017 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.2.2 |
Top View Grid Investment Limited |
|
1 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
0.00% |
July 31, 2017 |
1.2.3 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
14,299,999,999 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
14,299,999,999 |
100.00% |
|
|
4 - Entity: 1.2.1 International Grid Holdings Limited |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
1 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
100.00% |
|
1.2.1.1 |
State Grid International Development Limited |
|
1 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
100.00% |
July 31, 2017 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.2.1.2 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
1 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
100.00% |
|
|
5 - Entity: 1.2.2 Top View Grid Investment Limited |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
1 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
100.00% |
|
1.2.2.1 |
State Grid International Development Limited |
|
1 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
100.00% |
July 31, 2017 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.2.2.2 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
1 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
100.00% |
|
|
6 - Entity: 1.2.1.1 State Grid International Development Limited |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
21,429,327,845 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
21,429,327,845 |
21.32% |
|
1.2.1.1.1 |
State Grid International Development Co., Ltd |
|
21,429,327,845 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
21,429,327,845 |
21.32% |
July 31, 2017 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
79,091,019,116 |
100.00% |
100.00% |
79,091,019,116 |
78.68% |
|
1.2.1.1.2 |
State Grid Overseas Investment Ltd |
|
- |
0.00% |
0.00% |
79,091,019,116 |
100.00% |
100.00% |
79,091,019,116 |
78.68% |
July 31, 2017 |
1.2.1.1.3 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
21,429,327,845 |
100.00% |
21.32% |
79,091,019,116 |
100.00% |
78.68% |
100,520,346,961 |
100.00% |
|
|
7 - Entity: 1.2.1.1.1 State Grid International Development Co., Ltd |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
7,131,288,000 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
7,131,288,000 |
100.00% |
|
1.2.1.1.1.1 |
State Grid Corporation of China |
|
7,131,288,000 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
7,131,288,000 |
100.00% |
July 31, 2017 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.2.1.1.1.2 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
7,131,288,000 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
7,131,288,000 |
100.00% |
|
|
8 - Entity: 1.2.1.1.2 State Grid Overseas Investment Ltd |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
100 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
100 |
100.00% |
|
1.2.1.1.2.1 |
State Grid Corporation of China |
|
100 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
100 |
100.00% |
July 31, 2017 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.2.1.1.2.2 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
100 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
100 |
100.00% |
|
The Company is committed to arbitration in the Market Arbitration Chamber, in accordance with the Arbitration Clause in Article 44 of the Company’s By-Laws.
90 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
KPMG Auditores Independentes
Av. Barão de Itapura, 950 - 6º andar
13020-431 - Campinas/SP - Brasil
Caixa Postal 737 - CEP 13012-970 - Campinas/SP - Brasil
Telefone +55 (19) 2129-8700, Fax +55 (19) 2129-8728
www.kpmg.com.br
Independent Auditors’ Report on Review of Interim Financial Information (Draft)
(A free translation of the original report in Portuguese, as filed with the Brazilian Securities and Exchange Commission (CVM), prepared in accordance with the accounting practices adopted in Brazil, rules of the CVM and of the International Financial Reporting Standards - IFRS)
To the Shareholders and Board Directors of
CPFL Energia S.A.
Campinas - SP
We have reviewed the individual and consolidated, interim financial information, of CPFL Energia S.A. (“the Company”), included in the Quarterly Information Form (ITR), for the quarter ended September 30, 2017, which comprises the statement of financial position as of September 30, 2017 and the respective statements of profit or loss and other comprehensive income for the three and nine month periods then ended, and the changes in equity and cash flows for the nine month period then ended, comprising the explanatory notes.
Management is responsible for the preparation of the interim financial information in accordance with CPC 21(R1) Technical Pronouncement - Interim Financial Information and International Standard IAS 34 - Interim Financial Reporting, issued by International Accounting Standards Board - IASB, and for presentation of this interim financial information in accordance with the rules issued by Brazilian Securities and Exchange 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.
We conducted our review in accordance with the Brazilian and international standard on interim review (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. The scope of a review is substantially less than an audit conducted in accordance with auditing standards and, consequently, it 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.
91 of 92
(Free Translation of the original in Portuguese) |
Standard Interim Financial Statements – ITR – Date: September 30, 2017 - CPFL Energia S.A. |
Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information referred above is not prepared, in all material respects, in accordance with CPC 21(R1) and the IAS 34, issued by IASB, applicable to the preparation of the Quarterly Information and presented in accordance with the rules issued by Brazilian Securities and Exchange Commission (CVM).
The individual and consolidated interim financial information, related to statements of value added (DVA) for the nine month period ended September 30, 2017, prepared under the responsibility of the Company's management, and presented as supplementary information for the purposes of IAS 34, were submitted to the same review procedures followed together with the review of the Company's interim financial information. In order to form our conclusion, we evaluated whether these statements are reconciled to the interim financial information and to the accounting records, as applicable, and whether their form and content are in accordance with the criteria set on Technical Pronouncement CPC 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that the accompanying statements of value added are not prepared, in all material respects, in accordance with the individual and consolidated interim financial information taken as a whole.
Other matter relating to corresponding information
The corresponding amounts related to individual and consolidated statement of financial position for the year ended December 31, 2016, were audited by another auditor who issued an unmodified opinion dated March 13, 2017. The corresponding amounts related to the individual and consolidated statement of profit or loss, other comprehensive income, changes in equity, cash flows and value added (supplementary information), for the three and nine months periods ended September 30, 2016, disclosed for comparative purpose and restated due to the matters described on Note 2.8, were also reviewed by another auditor who expressed an unmodified conclusion dated November 6, 2017.
Campinas, November 6, 2017
KPMG Auditores Independentes
CRC (Regional Accounting Council) CRC 2SP027612/O-4
(Original report in Portuguese signed by)
Márcio José dos Santos
Accountant CRC 1SP252906/O-0
92 of 92
CPFL ENERGIA S.A. | ||
|
By: |
/S/ GUSTAVO ESTRELLA
|
Name: Title: |
Gustavo Estrella Chief Financial Officer and Head of Investor Relations |
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.