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 – 2016 – CPFL Energia S.A. | Version: 1 |
Summary
Registration data
1 | . | General information | 2 |
2 | . | Address | 3 |
3 | . | Securities | 4 |
4 | . | Auditor information | 5 |
5 | . | Share register | 6 |
6 | . | Investor relations officer | 7 |
7 | . | Shareholders’ department | 8 |
1
Registration Form – 2016 – CPFL Energia S.A. Version: 1
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: | 11/30/2009 |
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 |
2
Registration Form – 2016 – CPFL Energia S.A. Version: 1
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: ri@cpfl.com.br
Registered Office Address: Rua Gomes de Carvalho, 1510, 14º– Cj 2 Vila Olímpia, São Paulo, SP, Brazil, zip code: 04547-005
Telephone: (019) 3756-6083, Fax: (019) 3756-6089, E-mail: ri@cpfl.com.br
3
Registration Form – 2016 – CPFL Energia S.A. Version: 1
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 |
4
Registration Form – 2016 – CPFL Energia S.A. Version: 1
4. Auditor information
Does the issuer have an auditor? | Yes |
CVM code: | 385-9 |
Type of auditor: | Brazilian firm |
Independent auditor: | Deloitte Touche Tomatsu Auditores Independentes |
CNPJ (Corporate Taxpayer ID): | 49.928.567/0001-11 |
Period of service: | 03/12/2012 |
Partner in charge | Marcelo Magalhães Fernandes |
Period of service | 03/12/2012 |
CPF (Individual Taxpayer ID) | 110.931.498-17 |
5
Registration Form – 2016 – CPFL Energia S.A. Version: 1
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: aescriturais@bb.com.br
6
Registration Form – 2016 – CPFL Energia S.A. Version: 1
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: gustavoestrella@cpfl.com.br.
Date when the officer assumed the position: 02/27/2013
Date when the officer left the position:
7
Registration Form – 2016 – CPFL Energia S.A. Version: 1
7. Shareholders’ department
Contact
Leandro José Cappa de Oliveira
Date when the officer assumed the position:
10/06/2014
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) 3756-6083, email: leandrocappa@cpfl.com.br
8
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Table of Contents | |
Company Data | |
Capital Composition | 1 |
Cash dividend | 2 |
Individual financial statements | |
Statement of Financial Position - Assets | 3 |
Statement of Financial Position - Liabilities and Equity | 4 |
Statement of Income | 5 |
Statement of Comprehensive Income | 6 |
Statement of Cash Flows – Indirect Method | 7 |
Statement of Changes in Equity | |
01/01/2016 to 09/30/2016 | 8 |
01/01/2015 to 09/30/2015 | 9 |
Statements of Value Added | 10 |
Consolidated Interim Financial Statements | |
Statement of Financial Position - Assets | 11 |
Statement of Financial Position - Liabilities and Equity | 12 |
Statement of Income | 13 |
Statement of Comprehensive Income | 14 |
Statement of Cash Flows - Indirect Method | 15 |
Statement of Changes in Equity | |
01/01/2016 to 09/30/2016 | 16 |
01/01/2015 to 09/30/2015 | 17 |
Statements of Value Added | 18 |
Comments on performance | 24 |
Notes to Interim financial statements | 27 |
Other relevant information | 91 |
Reports | |
Independent Auditor’s Report - Unqualified | 94 |
9
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Number of Shares (In units) |
Closing Date 09/30/2016 |
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
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Company Data
Event |
Approval |
Description |
Beginning of payment |
Type of share |
Class of share |
Amount per share (Reais/share) |
|
|
|
|
|
|
|
2
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
(in thousands of Brazilian reais – R$) |
|
| |
Code |
Description |
Current Year 09/30/2016 |
Previous Year 12/31/2015 |
1 |
Total assets |
8,122,327 |
8,948,469 |
1.01 |
Current assets |
1,224,914 |
1,795,763 |
1.01.01 |
Cash and cash equivalents |
461,727 |
424,192 |
1.01.06 |
Recoverable taxes |
75,507 |
72,885 |
1.01.06.01 |
Current recoverable taxes |
75,507 |
72,885 |
1.01.08 |
Other current assets |
687,680 |
1,298,686 |
1.01.08.03 |
Others |
687,680 |
1,298,686 |
1.01.08.03.01 |
Other credits |
1,088 |
943 |
1.01.08.03.02 |
Dividends and interest on shareholders’ equity |
686,592 |
1,227,590 |
1.01.08.03.03 |
Derivatives |
- |
70,153 |
1.02 |
Noncurrent assets |
6,897,413 |
7,152,706 |
1.02.01 |
Noncurrent assets |
290,314 |
211,432 |
1.02.01.06 |
Deferred taxes |
157,053 |
140,389 |
1.02.01.06.02 |
Deferred taxes credits |
157,053 |
140,389 |
1.02.01.08 |
Related parties credits |
53,305 |
2,814 |
1.02.01.08.02 |
Subsidiaries credits |
53,305 |
2,814 |
1.02.01.09 |
Other noncurrent assets |
79,956 |
68,229 |
1.02.01.09.03 |
Escrow deposits |
727 |
630 |
1.02.01.09.05 |
Other credits |
8,209 |
14,919 |
1.02.01.09.07 |
Advance for future capital increase |
71,020 |
52,680 |
1.02.02 |
Investments |
6,605,832 |
6,940,036 |
1.02.02.01 |
Permanent equity interests |
6,605,832 |
6,940,036 |
1.02.02.01.01 |
Investments in subsidiaries |
6,605,832 |
6,940,036 |
1.02.03 |
Property, plant and equipment |
1,243 |
1,215 |
1.02.03.01 |
PP&E - in service |
892 |
947 |
1.02.03.03 |
PP&E - in progress |
351 |
268 |
1.02.04 |
Intangible assets |
24 |
23 |
1.02.04.01 |
Intangible assets |
24 |
23 |
3
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Individual Financial Statements
Statement of Financial Position – Liabilities and Equity
(in thousands of Brazilian reais – R$) |
|||
Code |
Description |
Current Year 09/30/2016 |
Previous Year 12/31/2015 |
2 |
Total liabilities |
8,122,327 |
8,948,469 |
2.01 |
Current liabilities |
23,763 |
1,206,708 |
2.01.02 |
Trade payables |
745 |
1,157 |
2.01.02.01 |
National Trade payables |
745 |
1,157 |
2.01.03 |
Tax Obligations |
612 |
747 |
2.01.03.01 |
Federal Tax Obligations |
612 |
747 |
2.01.03.01.02 |
PIS (Tax on Revenue) |
45 |
63 |
2.01.03.01.03 |
COFINS (Tax on Revenue) |
276 |
391 |
2.01.03.01.04 |
Others Federal |
291 |
293 |
2.01.04 |
Loans and financing |
- |
973,252 |
2.01.04.01 |
Loans and financing |
- |
973,252 |
2.01.04.01.01 |
Brazilian currency |
- |
330,164 |
2.01.04.01.02 |
Foreign Currency |
- |
643,088 |
2.01.05 |
Other Current liabilities |
22,406 |
231,552 |
2.01.05.02 |
Others |
22,406 |
231,552 |
2.01.05.02.01 |
Dividends and interest on capital payable |
6,081 |
212,531 |
2.01.05.02.04 |
Derivatives |
- |
981 |
2.01.05.02.05 |
Other payable |
16,325 |
18,040 |
2.02 |
Noncurrent liabilities |
64,030 |
67,565 |
2.02.02 |
Other Noncurrent liabilities |
63,151 |
65,930 |
2.02.02.02 |
Others |
63,151 |
65,930 |
2.02.02.02.04 |
Other payable |
63,151 |
65,930 |
2.02.04 |
Provisions |
879 |
1,635 |
2.02.04.01 |
Civil, Labor, Social and Tax Provisions |
879 |
1,635 |
2.02.04.01.02 |
Labor and tax provisions |
384 |
1,209 |
2.02.04.01.04 |
Civil provisions |
495 |
426 |
2.03 |
Shareholders’ equity |
8,034,534 |
7,674,196 |
2.03.01 |
Capital |
5,741,284 |
5,348,312 |
2.03.02 |
Capital reserves |
468,302 |
468,082 |
2.03.04 |
Profit reserves |
1,418,366 |
1,672,481 |
2.03.04.01 |
Legal reserves |
694,058 |
694,058 |
2.03.04.02 |
Statutory reserves |
724,308 |
978,423 |
2.03.05 |
Retained earnings |
644,988 |
- |
2.03.08 |
Other comprehensive income |
- 238,406 |
185,321 |
2.03.08.01 |
Accumulated comprehensive income |
- 238,406 |
185,321 |
4
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Individual Financial Statements
(in thousands of Brazilian reais – R$) |
|
|
|
| |
Code |
Description |
Current Year - Third Quarter |
YTD Current Year |
Previous Year - Third Quarter |
YTD Previous Year |
07/01/2016 to 09/30/2016 |
01/01/2016 to 09/30/2016 |
07/01/2015 to 09/30/2015 |
01/01/2015 to 09/30/2015 | ||
3.01 |
Net Operating revenues |
- |
1,713 |
1 |
1,157 |
3.03 |
Gross Operating income |
- |
1,713 |
1 |
1,157 |
3.04 |
Gross Operating income (expense) |
215,150 |
741,018 |
262,689 |
587,347 |
3.04.02 |
General and administrative |
(16,083) |
(37,025) |
(8,161) |
(23,422) |
3.04.06 |
Equity income |
231,233 |
778,043 |
270,850 |
610,769 |
3.05 |
Income before financial income and taxes |
215,150 |
742,731 |
262,690 |
588,504 |
3.06 |
Financial income / expense |
19,631 |
24,392 |
5,714 |
(16,232) |
3.06.01 |
Financial income |
25,320 |
61,707 |
24,099 |
49,674 |
3.06.02 |
Financial expense |
(5,689) |
(37,315) |
(18,385) |
(65,906) |
3.07 |
Income before taxes |
234,781 |
767,123 |
268,404 |
572,272 |
3.08 |
Income tax and social contribution |
(3,216) |
(4,398) |
(791) |
(11,509) |
3.08.01 |
Current |
8,100 |
(21,062) |
(95) |
(7,751) |
3.08.02 |
Deferred |
(11,316) |
16,664 |
(696) |
(3,758) |
3.09 |
Net income from continuing operations |
231,565 |
762,725 |
267,613 |
560,763 |
3.11 |
Net income |
231,565 |
762,725 |
267,613 |
560,763 |
5
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Individual Financial Statements
(in thousands of Brazilian reais – R$) |
|
|
|
| |
Code |
Description |
Current Year - Third Quarter |
YTD Current Year |
Previous Year - Third Quarter |
YTD Previous Year |
07/01/2016 to 09/30/2016 |
01/01/2016 to 09/30/2016 |
07/01/2015 to 06/30/2015 |
01/01/2015 to 09/30/2015 | ||
4.01 |
Net income |
231,565 |
762,725 |
267,613 |
560,763 |
4.02 |
Other comprehensive income |
- |
(404,363) |
121,420 |
121,419 |
4.02.02 |
Equity on comprehensive income of subsidiaries |
- |
(404,363) |
121,420 |
121,419 |
4.03 |
Comprehensive income |
231,565 |
358,362 |
389,033 |
682,182 |
6
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Individual Financial Statements
(in thousands of Brazilian reais – R$) |
|||
Code |
Description |
Current year |
Previous Year |
6.01 |
Net cash from operating activities |
1,250,966 |
589,246 |
6.01.01 |
Cash generated (used) from operations |
15,210 |
26,055 |
6.01.01.01 |
Net income, including income tax and social contribution |
767,123 |
572,272 |
6.01.01.02 |
Depreciation and amortization |
148 |
123 |
6.01.01.03 |
Provision for tax, civil and labor risks |
260 |
1,452 |
6.01.01.04 |
Share of profit (loss) of investees |
(778,043) |
(610,770) |
6.01.01.05 |
Interest on debts, inflation adjusment and exchange rate changes |
25,722 |
62,978 |
6.01.02 |
Variation on assets and liabilities |
1,235,756 |
563,191 |
6.01.02.01 |
Dividend and interest on shareholders’ equity received |
1,300,253 |
607,349 |
6.01.02.02 |
Recoverable taxes |
7,170 |
5,388 |
6.01.02.03 |
Escrow deposits |
(64) |
(116) |
6.01.02.04 |
Other operating assets |
7,362 |
574 |
6.01.02.05 |
Trade payables |
(412) |
(334) |
6.01.02.06 |
Other taxes and social contributions |
(135) |
344 |
6.01.02.07 |
Interest on debts (paid) |
(45,470) |
(36,858) |
6.01.02.08 |
Income tax and social contribution paid |
(27,117) |
(9,368) |
6.01.02.09 |
Other operating liabilities |
(4,771) |
(3,539) |
6.01.02.10 |
Tax, civil and labor risks paid |
(1,060) |
(249) |
6.02 |
Net cash in investing activities |
(115,617) |
(72,131) |
6.02.01 |
Acquisition of property, plant and equipment |
(572) |
(535) |
6.02.02 |
Securities |
(400) |
- |
6.02.04 |
Loans to subsidiaries and associates |
(43,624) |
11,095 |
6.02.05 |
Capital increase in investments |
- |
(10) |
6.02.06 |
Purchases of intangible assets |
- |
(11) |
6.02.07 |
Advance for future capital increase |
(71,021) |
(82,670) |
6.03 |
Net cash in financing activities |
(1,097,814) |
(460,154) |
6.03.01 |
Loans, financing and debentures obtained |
(888,408) |
(1,290,000) |
6.03.02 |
Payments of dividend and interest on shareholders’ equity |
(204,695) |
(151) |
6.03.03 |
Loans, financing and debentures obtained |
- |
829,997 |
6.03.04 |
Derivative instruments paid |
(4,711) |
- |
6.05 |
Increase (decrease) in cash and cash equivalents |
37,535 |
56,961 |
6.05.01 |
Cash and cash equivalents at beginning of period |
424,192 |
799,775 |
6.05.02 |
Cash and cash equivalents at end of period |
461,727 |
856,736 |
7
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Individual Financial Statements
(in thousands of Brazilian reais – R$) |
|||||||
Code |
Description |
Capital |
Capital Reserves, |
Profit Reserves |
Retained earnings |
Other comprehensive income |
Shareholders’ Equity Total |
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
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Individual Financial Statements
(in thousands of Brazilian reais – R$) |
|||||||
Code |
Description |
Capital |
Capital Reserves, options and treasury shares |
Profit Reserves |
Retained earnings |
Other comprehensive income |
Shareholders’ Equity Total |
5.01 |
Opening Balances |
4,793,424 |
468,082 |
1,536,136 |
- |
145,893 |
6,943,535 |
5.03 |
Adjusted balance |
4,793,424 |
468,082 |
1,536,136 |
- |
145,893 |
6,943,535 |
5.04 |
Capital transactions with shareholders |
554,888 |
- |
(554,888) |
3,135 |
- |
3,135 |
5.04.01 |
Capital increase |
554,888 |
- |
(554,888) |
- |
- |
- |
5.04.12 |
Prescribed dividend |
- |
- |
- |
3,135 |
- |
3,135 |
5.05 |
Total Comprehensive Income |
- |
- |
- |
560,763 |
121,419 |
682,182 |
5.05.01 |
Net income for the period |
- |
- |
- |
560,763 |
- |
560,763 |
5.05.02 |
Other comprehensive income: actuarial gain (loss) |
- |
- |
- |
- |
121,419 |
121,419 |
5.06 |
Internal changes in Shareholders' equity |
- |
- |
166,448 |
(146,778) |
(19,670) |
- |
5.06.05 |
Equity on comprehensive income of subsidiaries |
- |
- |
- |
19,670 |
(19,670) |
- |
5.06.08 |
Changes in statutory reserve in the year |
- |
- |
166,448 |
(166,448) |
- |
- |
5.07 |
Ending Balances |
5,348,312 |
468,082 |
1,147,696 |
417,120 |
247,642 |
7,628,852 |
9
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Individual Financial Statements
(in thousands of Brazilian reais – R$) |
|
| |
|
|
|
|
Code |
Description |
Current Year |
Previous Year |
7.01 |
Revenues |
2,459 |
1,821 |
7.01.01 |
Sales of goods, products and services |
1,888 |
1,274 |
7.01.02 |
Revenues related to construction of own assets |
571 |
547 |
7.02 |
Inputs |
(9,034) |
(8,305) |
7.02.02 |
Material-Energy-Outsourced services-Other |
(7,269) |
(6,128) |
7.02.04 |
Other |
(1,765) |
(2,177) |
7.03 |
Gross added value |
(6,575) |
(6,484) |
7.04 |
Retentions |
(148) |
(123) |
7.04.01 |
Depreciation and amortization |
(148) |
(123) |
7.05 |
Net added value generated |
(6,723) |
(6,607) |
7.06 |
Added value received in transfer |
844,015 |
667,429 |
7.06.01 |
Equity in subsidiaries |
778,043 |
610,769 |
7.06.02 |
Financial income |
65,972 |
56,660 |
7.07 |
Added Value to be Distributed |
837,292 |
660,822 |
7.08 |
Distribution of Added Value |
837,292 |
660,822 |
7.08.01 |
Personnel |
24,985 |
13,095 |
7.08.01.01 |
Direct Remuneration |
14,583 |
7,281 |
7.08.01.02 |
Benefits |
9,338 |
5,047 |
7.08.01.03 |
Government severance indemnity fund for employees-F.G.T.S. |
1,064 |
767 |
7.08.02 |
Taxes, Fees and Contributions |
12,668 |
25,534 |
7.08.02.01 |
Federal |
12,636 |
25,512 |
7.08.02.02 |
State |
32 |
22 |
7.08.03 |
Remuneration on third parties’ capital |
36,914 |
61,431 |
7.08.03.01 |
Interest |
36,877 |
61,321 |
7.08.03.02 |
Rental |
37 |
110 |
7.08.04 |
Remuneration on own capital |
762,725 |
560,762 |
7.08.04.03 |
Retained profit / loss for the period |
762,725 |
560,762 |
10
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
(in thousands of Brazilian reais – R$) |
|
| |
|
|
|
|
Code |
Description |
Current Year 09/30/2016 |
Previous Year 12/31/2015 |
1 |
Total assets |
37,552,701 |
40,532,471 |
1.01 |
Current assets |
10,364,766 |
12,508,652 |
1.01.01 |
Cash and cash equivalents |
5,344,665 |
5,682,802 |
1.01.02 |
Financial Investments |
53,147 |
23,633 |
1.01.02.02 |
Financial Investments at amortized cost |
53,147 |
23,633 |
1.01.02.02.01 |
Held to maturity |
53,147 |
23,633 |
1.01.03 |
Accounts receivable |
3,540,804 |
3,174,918 |
1.01.03.01 |
Consumers |
3,540,804 |
3,174,918 |
1.01.06 |
Recoverable taxes |
376,849 |
475,211 |
1.01.06.01 |
Current Recoverable taxes |
376,849 |
475,211 |
1.01.08 |
Other current assets |
1,049,301 |
3,152,088 |
1.01.08.03 |
Other |
1,049,301 |
3,152,088 |
1.01.08.03.01 |
Other credits |
674,212 |
959,554 |
1.01.08.03.02 |
Derivatives |
111,761 |
627,493 |
1.01.08.03.04 |
Dividends and interest on shareholders’ equity |
13,424 |
91,392 |
1.01.08.03.05 |
Financial asset of concession |
10,563 |
9,630 |
1.01.08.03.06 |
Sector financial asset |
239,341 |
1,464,019 |
1.02 |
Noncurrent assets |
27,187,935 |
28,023,819 |
1.02.01 |
Noncurrent assets |
7,121,194 |
8,392,634 |
1.02.01.03 |
Accounts receivable |
141,040 |
128,946 |
1.02.01.03.01 |
Consumers |
141,040 |
128,946 |
1.02.01.06 |
Deferred taxes |
578,360 |
334,886 |
1.02.01.06.02 |
Deferred taxes credits |
578,360 |
334,886 |
1.02.01.08 |
Related parties |
46,292 |
84,265 |
1.02.01.08.01 |
Related parties credits |
46,292 |
84,265 |
1.02.01.09 |
Other noncurrent assets |
6,355,502 |
7,844,537 |
1.02.01.09.03 |
Derivatives |
664,538 |
1,651,260 |
1.02.01.09.04 |
Escrow deposits |
499,126 |
1,227,527 |
1.02.01.09.05 |
Recoverable taxes |
166,102 |
167,159 |
1.02.01.09.07 |
Financial asset of concession |
4,222,894 |
3,597,474 |
1.02.01.09.09 |
Investments at cost |
116,654 |
116,654 |
1.02.01.09.10 |
Other credits |
635,276 |
594,518 |
1.02.01.09.11 |
Sector financial asset |
50,912 |
489,945 |
1.02.02 |
Investments |
1,440,262 |
1,247,631 |
1.02.02.01 |
Permanent equity interests |
1,440,262 |
1,247,631 |
1.02.02.01.01 |
Investments in subsidiaries |
1,440,262 |
1,247,631 |
1.02.03 |
Property, plant and equipment |
9,663,465 |
9,173,217 |
1.02.03.01 |
PP&E - in service |
8,972,954 |
8,499,051 |
1.02.03.03 |
PP&E - in progress |
690,511 |
674,166 |
1.02.04 |
Intangible assets |
8,963,014 |
9,210,337 |
1.02.04.01 |
Intangible assets |
8,963,014 |
9,210,337 |
11
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated Financial Statements
(in thousands of Brazilian reais – R$) |
|
| |
|
|
|
|
Code |
Description |
Current Year 09/30/2016 |
Previous Year 12/31/2015 |
2 |
Total liabilities |
37,552,701 |
40,532,471 |
2.01 |
Current liabilities |
7,157,696 |
9,524,873 |
2.01.01 |
Social and Labor Obligations |
133,527 |
79,924 |
2.01.01.02 |
Labor Obligations |
133,527 |
79,924 |
2.01.01.02.01 |
Estimated Labor Obligation |
133,527 |
79,924 |
2.01.02 |
Trade payables |
1,943,657 |
3,161,210 |
2.01.02.01 |
National Trade payables |
1,943,657 |
3,161,210 |
2.01.03 |
Tax Obligations |
671,487 |
653,342 |
2.01.03.01 |
Federal Tax Obligations |
280,843 |
265,126 |
2.01.03.01.01 |
Income tax and Social Contribution |
126,299 |
43,249 |
2.01.03.01.02 |
PIS (Tax on Revenue) |
22,165 |
33,199 |
2.01.03.01.03 |
COFINS (Tax on Revenue) |
102,579 |
159,317 |
2.01.03.01.04 |
Others Federal |
29,800 |
29,361 |
2.01.03.02 |
State Tax Obligations |
386,671 |
384,151 |
2.01.03.02.01 |
ICMS (Tax on Revenue) |
386,664 |
384,151 |
2.01.03.02.02 |
Others State |
7 |
- |
2.01.03.03 |
Municipal Tax Obligations |
3,973 |
4,065 |
2.01.03.03.01 |
Others Municipal |
3,973 |
4,065 |
2.01.04 |
Loans and financing |
3,038,189 |
3,640,314 |
2.01.04.01 |
Loans and financing |
1,531,693 |
2,949,922 |
2.01.04.01.01 |
Brazilian currency |
1,089,466 |
1,287,278 |
2.01.04.01.02 |
Foreign Currency |
442,227 |
1,662,644 |
2.01.04.02 |
Debentures |
1,506,496 |
690,392 |
2.01.04.02.01 |
Debentures |
1,275,079 |
458,165 |
2.01.04.02.02 |
Interest on debentures |
231,417 |
232,227 |
2.01.05 |
Other liabilities |
1,370,836 |
1,990,083 |
2.01.05.02 |
Others |
1,370,836 |
1,990,083 |
2.01.05.02.01 |
Dividends and interest on capital payable |
8,211 |
221,855 |
2.01.05.02.04 |
Derivatives |
4,548 |
981 |
2.01.05.02.05 |
Sector financial liability |
317,091 |
- |
2.01.05.02.06 |
Public utility |
9,941 |
9,457 |
2.01.05.02.07 |
Other payable |
737,258 |
904,971 |
2.01.05.02.08 |
Regulatory charges |
284,841 |
852,017 |
2.01.05.02.09 |
Post-employment benefit obligation |
8,946 |
802 |
2.02 |
Noncurrent liabilities |
19,941,335 |
20,877,460 |
2.02.01 |
Loans and financing |
16,370,726 |
18,092,904 |
2.02.01.01 |
Loans and financing |
11,238,437 |
11,712,865 |
2.02.01.01.01 |
Brazilian currency |
6,434,730 |
6,438,701 |
2.02.01.01.02 |
Foreign Currency |
4,803,707 |
5,274,164 |
2.02.01.02 |
Debentures |
5,132,289 |
6,380,039 |
2.02.01.02.01 |
Debentures |
5,106,400 |
6,363,552 |
2.02.01.02.02 |
Interest on debentures |
25,889 |
16,487 |
2.02.02 |
Other payable |
1,612,250 |
782,427 |
2.02.02.02 |
Other |
1,612,250 |
782,427 |
2.02.02.02.03 |
Trade payables |
633 |
633 |
2.02.02.02.04 |
Post-employment benefit obligation |
857,031 |
474,318 |
2.02.02.02.05 |
Derivatives |
129,299 |
33,205 |
2.02.02.02.06 |
Sector financial liability |
357,164 |
- |
2.02.02.02.07 |
Public utility |
87,666 |
83,124 |
2.02.02.02.08 |
Other payable |
180,457 |
191,147 |
2.02.03 |
Deferred taxes |
1,345,092 |
1,432,594 |
2.02.03.01 |
Deferred Income tax and Social Contribution |
1,345,092 |
1,432,594 |
2.02.04 |
Provisions |
613,267 |
569,535 |
2.02.04.01 |
Civil, Labor, Social and Tax Provisions |
613,267 |
569,535 |
2.02.04.01.01 |
Tax Provisions |
265,405 |
184,362 |
2.02.04.01.02 |
Labor and pension provisions |
145,627 |
171,990 |
2.02.04.01.04 |
Civil provisions |
181,056 |
194,530 |
2.02.04.01.05 |
Others |
21,179 |
18,653 |
2.03 |
Shareholders´ equity - consolidated |
10,453,670 |
10,130,138 |
2.03.01 |
Capital |
5,741,284 |
5,348,312 |
2.03.02 |
Capital reserves |
468,302 |
468,082 |
2.03.04 |
Profit reserves |
1,418,366 |
1,672,481 |
2.03.04.01 |
Legal reserves |
694,058 |
694,058 |
2.03.04.02 |
Statutory reserve |
724,308 |
978,423 |
2.03.05 |
Retained earnings |
644,988 |
- |
2.03.08 |
Other comprehensive income |
(238,407) |
185,321 |
2.03.09 |
Shareholders Non-controlling interest |
2,419,137 |
2,455,942 |
12
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated Financial Statements
(in thousands of Brazilian reais – R$) |
|||||
Code |
Description |
Current Year - Third Quarter |
YTD Current Year |
Previous Year - Third Quarter |
YTD Previous Year |
07/01/2016 to 09/30/2016 |
01/01/2016 to 09/30/2016 |
07/01/2015 to 09/30/2015 |
01/01/2015 to 09/30/2015 | ||
3.01 |
Net Operating revenues |
4,737,375 |
13,402,846 |
4,967,172 |
15,419,789 |
3.02 |
Cost of electric energy services |
(3,657,687) |
(10,403,455) |
(3,878,610) |
(12,520,681) |
3.02.01 |
Cost of electric energy |
(2,770,513) |
(7,963,080) |
(3,140,041) |
(10,349,581) |
3.02.02 |
Operating cost |
(562,184) |
(1,622,816) |
(486,029) |
(1,402,773) |
3.02.03 |
Services rendered to third parties |
(324,990) |
(817,559) |
(252,540) |
(768,327) |
3.03 |
Gross Operating income |
1,079,688 |
2,999,391 |
1,088,562 |
2,899,108 |
3.04 |
Gross Operating income (expense) |
(321,483) |
(1,012,431) |
(322,802) |
(1,107,543) |
3.04.01 |
Sales expenses |
(123,680) |
(387,775) |
(118,385) |
(349,785) |
3.04.02 |
General and administrative |
(192,069) |
(607,198) |
(182,980) |
(621,666) |
3.04.05 |
Others |
(74,560) |
(218,402) |
(65,041) |
(261,077) |
3.04.06 |
Equity income |
68,826 |
200,944 |
43,604 |
124,985 |
3.05 |
Income before financial income and taxes |
758,205 |
1,986,960 |
765,760 |
1,791,565 |
3.06 |
Financial income / expense |
(371,453) |
(802,415) |
(346,537) |
(900,024) |
3.06.01 |
Financial income |
335,467 |
1,141,838 |
420,914 |
1,037,481 |
3.06.02 |
Financial expense |
(706,920) |
(1,944,253) |
(767,451) |
(1,937,505) |
3.07 |
Income before taxes |
386,752 |
1,184,545 |
419,223 |
891,541 |
3.08 |
Income tax and social contribution |
(117,480) |
(442,691) |
(139,002) |
(378,770) |
3.08.01 |
Current |
(219,493) |
(771,290) |
(71,801) |
(270,456) |
3.08.02 |
Deferred |
102,013 |
328,599 |
(67,201) |
(108,314) |
3.09 |
Net income from continuing operations |
269,272 |
741,854 |
280,221 |
512,771 |
3.11 |
Net income |
269,272 |
741,854 |
280,221 |
512,771 |
3.11.01 |
Net income attributable to controlling shareholders |
231,565 |
762,725 |
267,613 |
560,763 |
3.11.02 |
Net income attributable to noncontrolling shareholders |
37,707 |
(20,871) |
12,608 |
(47,992) |
13
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated Financial Statements
(in thousands of Brazilian reais – R$) |
|
|
|
| |
Code |
Description |
Current Year - Third Quarter |
YTD Current Year |
Previous Year - Third Quarter |
YTD Previous Year |
|
|
07/01/2016 to 09/30/2016 |
01/01/2016 to 09/30/2016 |
07/01/2015 to 06/30/2015 |
01/01/2015 to 09/30/2015 |
4.01 |
Consolidated profit for the period |
269,272 |
741,854 |
280,221 |
512,771 |
4.02 |
Other comprehensive income |
- |
(404,363) |
121,419 |
121,419 |
4.02.01 |
Actuarial gains (losses), net of tax effects |
- |
(404,363) |
121,419 |
121,419 |
4.03 |
Consolidated comprehensive income |
269,272 |
337,491 |
401,640 |
634,190 |
4.03.01 |
Comprehensive income attributable to controlling shareholders |
231,565 |
358,362 |
389,033 |
682,182 |
4.03.02 |
Comprehensive income attributable to non controlling shareholders |
37,707 |
(20,871) |
12,607 |
(47,992) |
14
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated Financial Statements
(in thousands of Brazilian reais – R$) |
|||
Code |
Description |
YTD Current Year |
YTD previous year |
6.01 |
Net cash from operating activities |
2,757,232 |
400,897 |
6.01.01 |
Cash generated from operations |
3,751,617 |
3,241,548 |
6.01.01.01 |
Net income, including income tax and social contribution |
1,184,545 |
891,541 |
6.01.01.02 |
Depreciation and amortization |
936,569 |
952,579 |
6.01.01.03 |
Reserve for tax, civil, labor and environmental risks |
180,905 |
185,740 |
6.01.01.04 |
Interest and monetary and exchange restatement |
1,446,963 |
1,160,977 |
6.01.01.05 |
Private pension plan |
51,483 |
49,036 |
6.01.01.06 |
Loss (gain) on disposal of noncurrent assets |
32,272 |
27,704 |
6.01.01.07 |
Deferred taxes - PIS and COFINS |
(8,933) |
4,834 |
6.01.01.08 |
Other |
(1,269) |
13 |
6.01.01.09 |
Allowance for doubtful accounts |
130,026 |
94,109 |
6.01.01.10 |
Equity income |
(200,944) |
(124,985) |
6.01.02 |
Variation on assets and liabilities |
(994,385) |
(2,840,651) |
6.01.02.01 |
Consumers, Concessionaires and Licensees |
(507,596) |
(1,177,907) |
6.01.02.02 |
Recoverable Taxes |
113,288 |
42,877 |
6.01.02.04 |
Escrow deposits |
755,342 |
27,270 |
6.01.02.05 |
Sector financial asset |
2,174,407 |
(1,271,800) |
6.01.02.06 |
Dividend and interest on shareholders’ equity received |
86,282 |
14,041 |
6.01.02.07 |
Receivables - Eletrobras |
101,456 |
(320,945) |
6.01.02.08 |
Concession financial asset (transmission) |
(38,005) |
(37,322) |
6.01.02.09 |
Other operating assets |
125,267 |
(40,229) |
6.01.02.10 |
Trade payables |
(1,217,552) |
(121,336) |
6.01.02.11 |
Regulatory charges |
(567,176) |
1,435,125 |
6.01.02.12 |
Tax, civil and labor risks paid |
(175,232) |
(142,956) |
6.01.02.13 |
Payables - CDE |
(37,509) |
32,562 |
6.01.02.14 |
Income tax and social contribution paid |
(687,539) |
(252,969) |
6.01.02.15 |
Sector financial liability |
247,857 |
(22,941) |
6.01.02.16 |
Interest paid on debts and debentures |
(1,229,949) |
(1,183,201) |
6.01.02.17 |
Other taxes and social contributions |
(65,534) |
162,021 |
6.01.02.18 |
Other liabilities with post-employment benefit obligation |
(64,990) |
(99,731) |
6.01.02.19 |
Other operating liabilities |
(7,202) |
116,790 |
6.02 |
Net cash in investing activities |
(1,628,855) |
(1,025,619) |
6.02.01 |
Purchases of property, plant and equipment |
(845,229) |
(312,699) |
6.02.02 |
Securities, pledges and restricted deposits |
(114,050) |
(114,598) |
6.02.04 |
Purchases of intangible assets |
(714,457) |
(618,693) |
6.02.05 |
Sale of noncurrent assets |
- |
9,833 |
6.02.07 |
Sale of interest in investees |
- |
10,454 |
6.02.08 |
Loans to subsidiaries and associates |
44,881 |
84 |
6.03 |
Net cash in financing activities |
(1,466,514) |
300,641 |
6.03.01 |
Borrowings and debentures obtained |
2,290,437 |
4,178,163 |
6.03.02 |
Borrowings and debentures paid |
(3,766,909) |
(3,737,144) |
6.03.03 |
Payments of dividend and interest on shareholders’ equity |
(228,045) |
(761) |
6.03.04 |
Capital increase by noncontrolling shareholders |
247 |
- |
6.03.05 |
Business combination payment |
(18,752) |
(47,941) |
6.03.06 |
Derivative instruments paid |
256,508 |
(91,676) |
6.05 |
Increase (decrease) in cash and cash equivalents |
(338,137) |
(324,081) |
6.05.01 |
Cash and cash equivalents at beginning of period |
5,682,802 |
4,357,455 |
6.05.02 |
Cash and cash equivalents at end of period |
5,344,665 |
4,033,374 |
15
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated Financial Statements
(in thousands of Brazilian reais – R$) |
|||||||||
Code |
Description |
Capital |
Capital Reserves, options and treasury shares |
Profit Reserves |
Retained earnings |
Other comprehensive income |
Shareholders’ Equity Total |
Noncontrolling Shareholders’ Equity |
Consolidated Shareholders’ Equity |
5.01 |
Opening balance |
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 non-controlling 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 fixed assets |
- |
- |
- |
29,341 |
(29,341) |
- |
- |
- |
5.06.11 |
Tax on deemed cost realization |
- |
- |
- |
(9,976) |
9,976 |
- |
- |
- |
5.07 |
Ending balance |
5,741,284 |
468,302 |
1,418,367 |
644,988 |
(238,408) |
8,034,533 |
2,419,136 |
10,453,669 |
16
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated Financial Statements
(in thousands of Brazilian reais – R$) |
|||||||||
Code |
Description |
Capital |
Capital |
Profit Reserves |
Retained earnings |
Other comprehensive income |
Shareholders´ equity |
Noncontrolling Shareholders’ Equity |
Consolidated Shareholders’ Equity |
5.01 |
Opening balance |
4,793,424 |
468,082 |
1,536,136 |
- |
145,893 |
6,943,535 |
2,453,794 |
9,397,329 |
5.03 |
Adjusted opening balance |
4,793,424 |
468,082 |
1,536,136 |
- |
145,893 |
6,943,535 |
2,453,794 |
9,397,329 |
5.04 |
Capital transactions within shareholders |
554,888 |
- |
- 554,888 |
3,135 |
- |
3,135 |
1,444 |
4,579 |
5.04.01 |
Capital increase |
554,888 |
- |
- 554,888 |
- |
- |
- |
- |
- |
5.04.09 |
Dividend proposal approved |
- |
- |
- |
- |
- |
- |
1,444 |
1,444 |
5.04.13 |
Prescribed dividend |
- |
- |
- |
3,135 |
- |
3,135 |
- |
3,135 |
5.05 |
Total comprehensive income |
- |
- |
- |
560,763 |
121,419 |
682,182 |
- 47,992 |
634,190 |
5.05.01 |
Net income |
- |
- |
- |
560,763 |
- |
560,763 |
- 47,992 |
512,771 |
5.05.02 |
Other comprehensive income: actuarial gain (loss) |
- |
- |
- |
- |
121,419 |
121,419 |
- |
121,419 |
5.06 |
Internal changes of shareholders equity |
- |
- |
166,448 |
- 146,778 |
- 19,670 |
- |
- |
- |
5.06.08 |
Statutory reserve for the period |
- |
- |
166,448 |
- 166,448 |
- |
- |
- |
- |
5.06.10 |
Realization of deemed cost of fixed assets |
- |
- |
- |
29,803 |
- 29,803 |
- |
- |
- |
5.06.11 |
Tax on deemed cost realization |
- |
- |
- |
- 10,133 |
10,133 |
- |
- |
- |
5.07 |
Ending balance |
5,348,312 |
468,082 |
1,147,696 |
417,120 |
247,642 |
7,628,852 |
2,407,246 |
10,036,098 |
17
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated Interim Financial Statements
(in thousands of Brazilian reais – R$) |
|||
Code |
Description |
Current Year |
Previous Year |
7.01 |
Revenues |
22,745,528 |
25,575,065 |
7.01.01 |
Sales of goods, products and services |
21,174,624 |
24,566,165 |
7.01.02 |
Other revenue |
816,950 |
767,769 |
7.01.02.01 |
Revenue from construction of infrastructure distribution |
816,950 |
767,769 |
7.01.03 |
Revenues related to the construction of own assets |
883,981 |
335,240 |
7.01.04 |
Allowance for doubtful accounts |
(130,027) |
(94,109) |
7.02 |
Inputs |
(11,426,738) |
(13,420,680) |
7.02.01 |
Cost of sales |
(8,846,195) |
(11,461,732) |
7.02.02 |
Material-Energy-Outsourced services-Other |
(2,189,095) |
(1,552,995) |
7.02.04 |
Other |
(391,448) |
(405,953) |
7.03 |
Gross added value |
11,318,790 |
12,154,385 |
7.04 |
Retentions |
(938,521) |
(953,434) |
7.04.01 |
Depreciation and amortization |
(752,249) |
(719,861) |
7.04.02 |
Other |
(186,272) |
(233,573) |
7.04.02.01 |
Intangible concession asset - amortization |
(186,272) |
(233,573) |
7.05 |
Net added value generated |
10,380,269 |
11,200,951 |
7.06 |
Added value received in transfer |
1,421,805 |
1,200,745 |
7.06.01 |
Equity in subsidiaries |
200,942 |
124,985 |
7.06.02 |
Financial income |
1,220,863 |
1,075,760 |
7.07 |
Added Value to be Distributed |
11,802,074 |
12,401,696 |
7.08 |
Distribution of Added Value |
11,802,074 |
12,401,696 |
7.08.01 |
Personnel |
748,895 |
676,438 |
7.08.01.01 |
Direct Remuneration |
463,889 |
416,616 |
7.08.01.02 |
Benefits |
246,535 |
226,078 |
7.08.01.03 |
Government severance indemnity fund for employees- F.G.T.S. |
38,471 |
33,744 |
7.08.02 |
Taxes, Fees and Contributions |
8,250,029 |
9,227,789 |
7.08.02.01 |
Federal |
4,614,222 |
5,805,988 |
7.08.02.02 |
State |
3,622,743 |
3,411,510 |
7.08.02.03 |
Municipal |
13,064 |
10,291 |
7.08.03 |
Remuneration on third parties’ capital |
2,061,296 |
1,984,698 |
7.08.03.01 |
Interest |
2,016,427 |
1,945,596 |
7.08.03.02 |
Rental |
44,869 |
39,102 |
7.08.04 |
Remuneration on own capital |
741,854 |
512,771 |
7.08.04.03 |
Retained Earnings / Loss for the Period |
741,854 |
512,771 |
18
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
The comments on performance are expressed in thousands of Brazilian reais, unless otherwise indicated.
Analysis of Results
CPFL Energia (Parent Company)
The decrease in net income in the quarter was R$ 36,048, compared with the same quarter of 2015 (R$ 231,565 in 2016 and R$ 267,613 in 2015), primarily due to a decrease in the equity income.
COMMENTS ON CONSOLIDATED PERFORMANCE
Consolidated | |||||||||||
3rd Quarter |
Nine months | ||||||||||
2016 |
2015 |
% |
2016 |
2015 |
% | ||||||
Operating revenues |
7,331,552 |
8,645,047 |
-15.2% |
21,991,574 |
25,333,935 |
-13.2% | |||||
Electricity sales to final consumers (*) |
5,474,412 |
5,993,616 |
-8.7% |
17,782,476 |
17,205,460 |
3.4% | |||||
Electricity sales to wholesaler´s (*) |
1,012,962 |
811,481 |
24.8% |
2,401,179 |
2,730,703 |
-12.1% | |||||
Revenue from construction of concession infrastructure |
325,100 |
252,049 |
29.0% |
816,950 |
767,769 |
6.4% | |||||
Other operating revenues (*) |
1,077,085 |
860,087 |
25.2% |
2,743,209 |
2,318,034 |
18.3% | |||||
Sector financial asset and liability |
(558,007) |
727,814 |
-176.7% |
(1,752,239) |
2,311,969 |
-175.8% | |||||
Deductions from operating revenues |
(2,594,177) |
(3,677,875) |
-29.5% |
(8,588,728) |
(9,914,147) |
-13.4% | |||||
Net operating revenue |
4,737,375 |
4,967,172 |
-4.6% |
13,402,846 |
15,419,789 |
-13.1% | |||||
Cost of electric energy |
(2,770,513) |
(3,140,041) |
-11.8% |
(7,963,080) |
(10,349,581) |
-23.1% | |||||
Electricity purchased for resale |
(2,465,707) |
(2,692,119) |
-8.4% |
(6,945,260) |
(9,207,611) |
-24.6% | |||||
Electricity network usage charges |
(304,806) |
(447,923) |
-32.0% |
(1,017,820) |
(1,141,970) |
-10.9% | |||||
Operating cost/expense |
(1,277,485) |
(1,104,974) |
15.6% |
(3,653,750) |
(3,403,628) |
7.3% | |||||
Personnel |
(261,189) |
(237,429) |
10.0% |
(773,357) |
(698,886) |
10.7% | |||||
Employee pension plans |
(23,658) |
(16,347) |
44.7% |
(51,483) |
(49,036) |
5.0% | |||||
Materials |
(64,766) |
(38,696) |
67.4% |
(143,821) |
(105,822) |
35.9% | |||||
Outside services |
(156,531) |
(142,723) |
9.7% |
(463,318) |
(412,743) |
12.3% | |||||
Depreciation and amortization |
(254,202) |
(249,397) |
1.9% |
(750,297) |
(719,004) |
4.4% | |||||
Intangible of concession amortization |
(62,365) |
(64,882) |
-3.9% |
(186,272) |
(233,574) |
-20.3% | |||||
Costs related to infrastructure construction |
(324,154) |
(251,887) |
28.7% |
(815,681) |
(766,605) |
6.4% | |||||
Other |
(130,619) |
(103,613) |
26.1% |
(469,521) |
(417,957) |
12.3% | |||||
Income from electric energy service |
689,379 |
722,157 |
-4.5% |
1,786,017 |
1,666,580 |
7.2% | |||||
Financial income (expense) |
(371,453) |
(346,537) |
7.2% |
(802,416) |
(900,024) |
-10.8% | |||||
Income |
335,467 |
420,915 |
-20.3% |
1,141,838 |
1,037,481 |
10.1% | |||||
Expense |
(706,920) |
(767,451) |
-7.9% |
(1,944,253) |
(1,937,505) |
0.3% | |||||
Interest in subsidiaries, associates and joint ventures |
68,826 |
43,603 |
57.8% |
200,944 |
124,985 |
60.8% | |||||
Income before taxes |
386,752 |
419,223 |
-7.7% |
1,184,545 |
891,541 |
32.9% | |||||
Social Contribution |
(35,448) |
(40,337) |
-12.1% |
(125,116) |
(104,972) |
19.2% | |||||
Income Tax |
(82,031) |
(98,665) |
-16.9% |
(317,575) |
(273,798) |
16.0% | |||||
Net income |
269,272 |
280,221 |
-3.9% |
741,854 |
512,771 |
44.7% | |||||
Net income attributable to the shareholders of the company |
231,565 |
267,613 |
-13.5% |
762,725 |
560,763 |
36.0% | |||||
Net income/(loss) attributable to the non controlling interests |
37,707 |
12,608 |
199.1% |
(20,871) |
(47,992) |
-56.5% | |||||
EBITDA |
1,074,917 |
1,080,322 |
-0.5% |
2,923,964 |
2,744,995 |
6.5% | |||||
(*) The reclassification of revenue from network usage charge - TUSD was not taken into account in presentation of the comments on consolidated performance. |
Net income for the period and EBITDA reconciliation |
|
|
|
|
|
|
|
|
Net income |
269,272 |
280,221 |
741,854 |
512,771 |
| |||
Depreciation and amortization |
316,567 |
314,279 |
936,569 |
952,580 |
| |||
Amortization of value-added of assets |
145 |
284 |
435 |
852 |
| |||
Financial income (expense) |
371,453 |
346,537 |
802,416 |
900,024 |
| |||
Social contribution |
35,448 |
40,337 |
125,116 |
104,972 |
| |||
Income tax |
82,031 |
98,665 |
317,575 |
273,798 |
| |||
EBITDA |
1,074,917 |
1,080,322 |
2,923,964 |
2,744,995 |
| |||
|
|
|
|
|
|
|
|
|
19
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Gross operating revenue
The gross operating revenue in the 3rd quarter of 2016 was R$ 7,331,552, drop of 15.2%
(R$ 1,313,495) compared with the same quarter of the previous year.
The main factors in this change were:
· Decrease of 8.7% (R$ 519,205) in the supply of electric energy, due to a decrease of 8.7%
(R$ 523,707) in the average tariffs charged mainly as a result of the reduction in billing for tariff flags, which were largely "red" in the third quarter of 2015. This effect was partially offset by (i) annual tariff adjustments, (ii) extraordinary tariff adjustment, and (iii) increase of 0.1% in the volume of energy sold (R$ 4.503);
· Increase of 24.8% (R$ 201,482) in the energy supplied, caused mainly by:
o Increase of 120.5% (R$ 105,204) in sales of current electric energy in the Electric Energy Commercialization Chamber (“CCEE”), due to the increase in the volume of energy traded in the spot market e and re-accounting for CCEE transactions in prior;
o Increase of 13.6% (R$ 81,666) in sales to other concessionaires and licensees, mainly due to an increase of 17.5% (R$ 105,015) in the volume sold, partially offset by a drop of 3.3% (R$ 23,349) in the average price;
o Increase of 11.9% (R$ 14,612) for Furnas due the price increase.
· Drop of 176.7% (R$ 1,285,822) in sector assets and liabilities, mainly due to (i) recording of a sector financial liability in the third quarter of 2016, due to a reduction in energy costs, mainly in CDE, system service charges (ESS) and reserve energy charge – EER, and tariff discounts - injunctions, and (ii) an increase in the amortization cost of ratified assets and liabilities.
· Increase of 25.2% (R$ 216,999) in other operating income, due mainly to (i) CDE contribution - low income and other tariff discounts (R$ 178,394) and (ii) leases with no effect on profit or loss (R$ 22,085).
Quantity of energy sold
In the third quarter of 2016, 3.3% less energy was billed in the period to captive consumers, including other licensees, than in the same quarter of the previous year.
The residential category, representing 39.3% of the total market supplied by the distributors, reported a stagnation of -0.1% in the 3rd quarter of 2016 in relation to the same period of the previous year. Besides the accumulated reduction of 4.7% in income levels in 12 months (August 2016).
The commercial category, which accounts for 20.1% of the total market supplied by the distributors, reported a drop of 6.1% in the 3rd quarter of 2016 in relation to the same period of the previous year. This result reflects the performance of the main indexes, such as income levels, with an accumulated reduction of 4.7% in 12 months (August 2016), retail sales, with an accumulated drop of 6.7% in 12 months (July 2016) and the migration of customers to the Free Market.
The industrial category, which accounts for 18.2% of the total market supplied by the distributors, reported a drop of 12.3% in the 3rd quarter of 2016 in relation to the same period of the previous year, as a direct consequence of the poor results of industrial activity in Brazil, which fell by 9.3%, year-to-date (August 2016), and the migration of customers to the Free Market. In spite of the decline in industrial production, the subsidiary CPFL Brasil's sales to customers in this category rose by 36.6% in relation to the same period of the previous year. This performance reflects the subsidiary's successful strategy of boosting energy sales to free and special consumers at a time at which the scenario favors the migration of customers to the free market.
The other consumption categories (rural, public authorities, public lighting, utilities and licensees) accounted for 22.3% of the total market supplied by the distributors. These categories reported an increase of 2.2% in the 3rd quarter of 2016, compared with the same period of the previous year. The result is due to the increase in consumption by the following categories: (i) rural, due to less rainfall in July and August than in the same period of the previous year, resulting in greater use of irrigation in rural areas, and (ii) Licensees, mainly serving residential consumers.
20
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
The amount of energy sold and transported in the concession area dropped by 2.1% in comparison with the same period of the previous year, with impacts on both the supply billed (captive market) and collection of TUSD (free market). The variation per category is stagnation in the residential category (-0.1%), a drop of 3.3% in the commercial category and 4.9% in the industrial category and growth of 2.8% in the other consumption categories.
Tariffs
In the 3rd quarter of 2016 the supply tariffs drop by an average of 8.7%. This was largely due to the effect of the distributors' annual tariff adjustment and periodic tariff review, as follows:
Periodic tariff review ("RTP") and | ||||||||||
2016 |
2015 | |||||||||
Distributor |
Month |
RTA / RTP |
Average effect perceived by consumers (a) |
RTA / RTP |
Average effect perceived by consumers (a) | |||||
CPFL Paulista |
April |
9.89% |
7.55% |
41.45% |
4.67% (c) | |||||
CPFL Piratininga |
October (b) |
-12.54% |
-24.21% |
56.29% |
21.11% (c) | |||||
RGE |
June |
-1.48% |
-7.51% |
33.48% |
-3.76% (c) | |||||
CPFL Santa Cruz |
March |
22.51% |
7.15% |
34.68% |
27.96% | |||||
CPFL Leste Paulista |
March |
21.04% |
13.32% |
20.80% |
24.89% | |||||
CPFL Jaguari |
March |
29.46% |
13.25% |
38.46% |
45.70% | |||||
CPFL Sul Paulista |
March |
24.35% |
12.82% |
24.88% |
28.38% | |||||
CPFL Mococa |
March |
16.57% |
9.02% |
23.34% |
29.28% |
a. Represents the average effect perceived by consumers, as a result of elimination from the tariff base of financial components added in the annual adjustment for the previous year (Information not reviewed by the independent auditors).
b. As mentioned in Note 35.4, the annual tariff adjustment for the subsidiary CPFL Piratininga occurred in October 2016.
c. Perception of consumers in comparison to the extraordinary tariff review of March 2015
Deductions from operating revenue
Deductions from operating revenue in the 3rd quarter of 2016 amounted to R$ 2,594,177, decrease of 29.5% (R$ 1,083,698) on the same quarter of 2015, largely due to:
· Decrease of 50.6%, or R$ 876,672, in sector charges, mainly caused by the reduction in (i) accounting for the effects of the tariff flag and other charges (R$ 501,034) and (ii) in the Energy Development Account - CDE (R$ 382,778);
· Reduction of 18.0% (R$ 137,580) in PIS and COFINS, largely due to the decrease in the calculation base for these taxes (energy provision, energy supply, sector assets and liabilities and other income);
· Decrease of 6.0% (R$ 70,372) in ICMS, largely as a result of the decrease in the supply billed.
Cost of electric energy
The cost of electric energy in the quarter totaled R$ 2,770,513, drop puff 11.8% (R$ 369,529) on the same period of the previous year, mainly due to:
· Decrease of 8.4% (R$ 226,412) in electric energy purchased for resale, due to:
o decrease of 41.4% (R$ 326,248) in energy purchased from Itaipu, mainly due to the lower tariff;
o drop of 9.2% (R$ 202,468) in the average price due to the reduction in the settlement price (“PLD”);
o Decrease in gains from the strategy of seasonality of the physical guarantee (R$ 11,295);
21
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
o decrease in the effect of the difference between the energy generated and the physical guarantee (GSF - Generation Scaling Factor), valued at the settlement price “PLD” of Ceran, CPFL Renováveis and Jaguari Geração (R$ 6,665) partially offset by;
o increase of 17.1% (R$ 320,264) in the amount of energy purchased.
· Decrease of 32.0% (R$ 143,117) in transmission and distribution network usage charges, mainly due to a decrease (R$ 90,422) in reserve energy charges, and system service charge – ESS (R$ 76,857).
Costs and expenses
Not considering the costs related to infrastructure construction, operating costs and expenses in the quarter amounted to R$ 953,331, increase of 11.8% (R$ 100,243) on the same period of the previous year. This was mainly due to:
· Personnel: increase of 10% (R$ 26,070), mainly due to the effects of the collective agreement and increase in the workforce;
· Material: increase of 67.4% (R$ 23,760) mainly due to (i) leases with no effect on profit or loss (R$ 22,085) and (ii) replacement of materials for line and grid maintenance (R$ 3,658);
· Third party services: increase of 9.7% (R$ 13,808), mainly for (i) warning, cut-off and reconnection
(R$ 7,595), (ii) tree trimming (R$ 4,737);
· Depreciation and amortization: an increase of 1.9% (R$ 4,805), mainly due to
increase in amortization of intangible distribution infrastructure asset, mainly due to additions to the intangible assets base in the period;
· Other expenses: an increase of 26.1% (R$ 27,007), mainly due to (i) an increase in losses on disposal and decommissioning of noncurrent assets (R$ 12,051) and (ii) a reduction in recovery of INSS expenses in 2015 (R$ 12,800).
Financial income (Expense)
The net financial expense in the quarter was R$ 371,453, compared with R$ 346,537 in the same period of 2015, increase of 7.2% (R$ 24,917) in net expense. This variation is mainly due to:
· A drop of 20.3% (R$ 85,448) in financial income, mainly due to reductions in (i) income from adjustment in the estimated cash flow from the financial assets of concession (R$ 75,756), (ii) restatement of sector financial asset (R$ 60,743), (iii) reduction in measurement of the fair value of the “zero-cost collar” derivative (R$ 14,556) and (iv) restatement of escrow deposits (R$ 13,850), partially offset by in the increase in (i) income from short-term cash investments (R$ 69,375);
· Reduction of 7.9% (R$ 60,531) in financial expense, primarily as a result of the decrease in the exchange variation on energy purchased from Itaipu (R$ 121,224), partially offset by the increase in debt charges and adjustment for inflation and exchange rate change resulting from the increase in the indexes (R$ 64,837).
Interest in subsidiaries, associates and joint ventures
Changes in consolidated equity income relate to income from equity in joint ventures, as shown below:
22
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
|
|
3rd quarter 2016 |
|
3rd quarter 2015 |
Epasa |
|
10,942 |
|
13,806 |
Baesa |
|
172 |
|
1,329 |
Enercan |
|
31,025 |
|
19,528 |
Chapecoense |
|
26,833 |
|
9,224 |
Amortization of value-added of assets |
|
(145) |
|
(284) |
Total |
|
68,826 |
|
43,603 |
· Chapecoense/Enercan: increase of R$ 29,106, largely due to a drop of R$ 35,901 in the cost of energy purchased resulting from greater exposure of the GSF factor in the third quarter of 2015, offset by an increase of R$ 5,315 in other expenses of Chapecoense, due to amortization of the GSF premium.
Social Contribution and Income Tax
Taxes on income in the 3rd quarter of 2016 were R$ 117,480, decrease of 15.5% (R$ 21,522) in relation to the expense and recorded in the same quarter of 2015, primarily due to the effects of changes in income before taxes.
Net Income and EBITDA
As a result of the above factors, net income for the quarter was R$ 269,272, 3.9% (R$ 10,949) lower than the same period of 2015.
EBITDA (net income excluding the effects of depreciation, amortization, financial income (expense), social contribution and income tax) for the 3rd quarter of 2016 was R$ 1,074,917, or 0.5% (R$ 5,406) lower than the same quarter of 2015.
23
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Subsidiary/Associate: Companhia Paulista de Força e Luz - CPFL
The subsidiary Companhia Paulista de Força e Luz - CPFL is a publicly quoted corporation, and its individual comments on performance are provided in its Interim Financial Statements - ITR, at September 30, 2016, filed with the CVM – Comissão de Valores Mobiliários.
Subsidiary/Associate: CPFL Geração de Energia S.A.
The subsidiary CPFL Geração de Energia S/A is a publicly quoted corporation, and its individual and consolidated comments on performance are provided in its Interim Financial Statements - ITR, at September 30, 2016, filed with the CVM – Comissão de Valores Mobiliários.
Subsidiary/Associate: Companhia Piratininga de Força e Luz
The subsidiary Companhia Piratininga de Força e Luz is a publicly quoted corporation, and its individual comments on performance are provided in its Interim Financial Statements - ITR, at September 30, 2016, filed with the CVM – Comissão de Valores Mobiliários.
Subsidiary/Associate: Rio Grande Energia S.A.
The subsidiary Rio Grande Energia S/A is a publicly quoted corporation, and its individual comments on performance are provided in its Interim Financial Statements - ITR, at September 30, 2016, filed with the CVM – Comissão de Valores Mobiliários.
24
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
|
| ||||||||||
Consolidated | |||||||||||
3rd Quarter |
Nine months | ||||||||||
2016 |
2015 |
% |
2016 |
2015 |
% | ||||||
Operating revenues |
634,500 |
513,108 |
23.7% |
1,672,000 |
1,494,014 |
11.9% | |||||
Electricity sales to final consumers |
395,262 |
281,458 |
40.4% |
1,049,632 |
841,882 |
24.7% | |||||
Electricity sales to wholesaler´s |
216,733 |
231,629 |
-6.4% |
573,380 |
652,103 |
-12.1% | |||||
Other operating revenues |
22,505 |
21 |
106123.5% |
48,988 |
29 |
166760.8% | |||||
Deductions from operating revenues |
(74,596) |
(59,845) |
24.6% |
(196,039) |
(180,446) |
8.6% | |||||
Net operating revenue |
559,904 |
453,263 |
23.5% |
1,475,960 |
1,313,568 |
12.4% | |||||
Cost of electric energy |
(494,474) |
(413,352) |
19.6% |
(1,343,612) |
(1,193,550) |
12.6% | |||||
Electricity purchased for resale |
(494,474) |
(413,352) |
19.6% |
(1,343,614) |
(1,193,550) |
12.6% | |||||
Operating cost/expense |
(11,721) |
(10,424) |
12.4% |
(33,178) |
(29,633) |
12.0% | |||||
Personnel |
(6,240) |
(5,695) |
9.6% |
(18,992) |
(17,240) |
10.2% | |||||
Materials |
(56) |
(57) |
-2.2% |
(181) |
(147) |
23.8% | |||||
Outside services |
(1,969) |
(1,811) |
8.7% |
(5,173) |
(4,694) |
10.2% | |||||
Depreciation and amortization |
(951) |
(1,154) |
-17.6% |
(2,879) |
(3,516) |
-18.1% | |||||
Other |
(2,506) |
(1,708) |
46.7% |
(5,953) |
(4,036) |
47.5% | |||||
Income from electric energy service |
53,709 |
29,487 |
82.1% |
99,170 |
90,385 |
9.7% | |||||
Financial income (expense) |
4,607 |
673 |
584.5% |
8,084 |
4,437 |
82.2% | |||||
Income |
8,959 |
11,343 |
-21.0% |
26,783 |
32,008 |
-16.3% | |||||
Expense |
(4,352) |
(10,670) |
-59.2% |
(18,699) |
(27,571) |
-32.2% | |||||
Income before taxes |
58,316 |
30,160 |
93.4% |
107,254 |
94,822 |
13.1% | |||||
Social contribution |
(5,292) |
(2,779) |
90.5% |
(9,547) |
(8,472) |
12.7% | |||||
Income tax |
(14,585) |
(7,581) |
92.4% |
(26,351) |
(23,491) |
12.2% | |||||
Net income |
38,439 |
19,800 |
94.1% |
71,355 |
62,860 |
13.5% | |||||
EBITDA |
54,660 |
30,641 |
78.4% |
102,049 |
93,901 |
8.7% | |||||
Net income for the period and EBITDA (*) reconciliation |
|
|
|
|
|
|
|
|
|
|
|
Net income |
38,439 |
19,800 |
71,355 |
62,860 |
| ||||||
Depreciation and amortization |
951 |
1,154 |
2,879 |
3,516 |
| ||||||
Financial income (expense) |
(4,607) |
(673) |
(8,084) |
(4,437) |
| ||||||
Social contribution |
5,292 |
2,779 |
9,547 |
8,472 |
| ||||||
Income tax |
14,585 |
7,581 |
26,351 |
23,491 |
| ||||||
EBITDA |
54,660 |
30,641 |
102,049 |
93,901 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
Gross operating revenue
Gross operating revenue of R$ 634,500 was recorded in the 3rd quarter of 2016, up R$ 121,392 (23.7%) on the same quarter of 2015, due mainly to (i) an increase in the amount of energy sold to free clients and concessionaires (949 GWh - R$ 176,661); and (ii) contractual indemnities for deferral of energy deliveries (R$ 22,493); partially offset by (iii) a drop in the average selling price in the period (R$ 68,758); and (iv) a decrease in gains on CCEE transactions due to the drop in the amount of energy sold (104 GWh - R$ 8,995).
Cost of electric energy
The cost of electric energy in the 3rd quarter of 2016 was R$ 494,474, up R$ 81,122 (19.6%) on the same quarter of 2015, mainly due to bilateral agreements: increase in volume of purchases (814 GWh - R$ 118,622) with a drop of 9.5% (R$ 39,163) in the average price.
Financial income (expense)
The finance income (expense) determined in the 3rd quarter of 2016 was finance income of R$ 4,607 up to R$ 3,934 in relation to the same quarter of 2015, mainly due to (i) settlement of debentures in the first quarter of 2016 (R$ 8,819), partially offset by (ii) an increase in the expense of interest of intercompany loans (R$ 4,354).
25
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Net income for the period and EBITDA
Net income in the 3rd quarter of 2016 was R$ 38,439 up to R$ 18,639 (94.1%) on the same quarter of 2015.
EBITDA (net Income before financial income (expense), income tax and social contribution, depreciation and amortization) for the 3rd quarter of 2016 was R$ 54,660, increase of 78.4% when compared with the same quarter of 2015 (R$ 30,641) (not reviewed by the independent auditors).
26
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Assets CPFL ENERGIA S.A.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR SEPTEMBER 30, 2016
(Amounts in thousands of Brazilian reais – R$, unless otherwise stated)
|
|
CPFL ENERGIA S.As Statement of Financial Position as of September 30, 2016 and December 31, 2015 (in thousands of Brazilian reais) | |||||||
| |||||||||
Parent company |
Consolidated | ||||||||
ASSETS |
Note |
September 30, |
December 31, |
September 30, |
December 31, | ||||
CURRENT ASSETS |
|||||||||
Cash and cash equivalents |
5 |
461,727 |
424,192 |
5,344,665 |
5,682,802 | ||||
Consumers, concessionaires and licensees |
6 |
- |
- |
3,540,804 |
3,174,918 | ||||
Dividends and interest on capital |
12 |
686,592 |
1,227,590 |
13,424 |
91,392 | ||||
Securities |
- |
- |
53,147 |
23,633 | |||||
Taxes recoverable |
7 |
75,507 |
72,885 |
376,849 |
475,211 | ||||
Derivatives |
33 |
- |
70,153 |
111,761 |
627,493 | ||||
Sector financial asset |
8 |
- |
- |
239,341 |
1,464,019 | ||||
Concession financial asset |
10 |
- |
- |
10,563 |
9,630 | ||||
Other receivables |
11 |
1,088 |
942 |
674,211 |
959,553 | ||||
TOTAL CURRENT ASSETS |
1,224,914 |
1,795,763 |
10,364,766 |
12,508,652 | |||||
NONCURRENT ASSETS |
|||||||||
Consumers, concessionaires and licensees |
6 |
- |
- |
141,040 |
128,946 | ||||
Associates, subsidiaries and parent company |
31 |
53,305 |
2,814 |
46,292 |
84,265 | ||||
Escrow Deposits |
21 |
727 |
630 |
499,126 |
1,227,527 | ||||
Taxes recoverable |
7 |
- |
- |
166,102 |
167,159 | ||||
Sector financial assets |
8 |
- |
- |
- |
489,945 | ||||
Derivatives |
33 |
- |
- |
664,538 |
1,651,260 | ||||
Deferred tax assets |
9 |
157,053 |
140,389 |
578,360 |
334,886 | ||||
Advance for future capital increase |
12 |
71,020 |
52,680 |
- |
- | ||||
Concession financial asset |
10 |
- |
- |
4,222,894 |
3,597,474 | ||||
Investments at cost |
- |
- |
116,654 |
116,654 | |||||
Other receivables |
11 |
8,209 |
14,919 |
686,187 |
594,519 | ||||
Investments |
12 |
6,605,832 |
6,940,036 |
1,440,262 |
1,247,631 | ||||
Property, plant and equipment |
13 |
1,243 |
1,215 |
9,663,465 |
9,173,217 | ||||
Intangible assets |
14 |
24 |
24 |
8,963,014 |
9,210,338 | ||||
TOTAL NONCURRENT ASSETS |
6,897,413 |
7,152,706 |
27,187,935 |
28,023,819 | |||||
TOTAL ASSETS |
8,122,327 |
8,948,469 |
37,552,701 |
40,532,471 |
The accompanying notes are an integral part of these interim financial statements.
27
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
CPFL ENERGIA S.A. | |||||||||
Statement of Financial Position as of September 30, 2016 and December 31, 2015 | |||||||||
(in thousands of Brazilian reais) | |||||||||
Parent company |
Consolidated | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
Note |
September 30, |
December 31, |
September 30, |
December 31, | ||||
CURRENT LIABILITIES |
|||||||||
Trade payables |
15 |
745 |
1,157 |
1,943,658 |
3,161,210 | ||||
Interest on debts |
16 |
- |
38,057 |
97,095 |
118,267 | ||||
Interest on debentures |
17 |
- |
- |
231,417 |
232,227 | ||||
Borrowings |
16 |
- |
935,196 |
1,434,598 |
2,831,654 | ||||
Debentures |
17 |
- |
- |
1,275,079 |
458,165 | ||||
Private pension plan |
18 |
- |
- |
8,946 |
802 | ||||
Regulatory charges |
19 |
- |
- |
284,841 |
852,017 | ||||
Taxes, fees and contributions |
20 |
612 |
747 |
671,486 |
653,342 | ||||
Dividends and interest on capital payable |
24 |
6,081 |
212,531 |
8,211 |
221,855 | ||||
Estimated payroll |
- |
- |
133,527 |
79,924 | |||||
Derivatives |
33 |
- |
981 |
4,548 |
981 | ||||
Sector financial liability |
8 |
- |
- |
317,091 |
- | ||||
Use of public asset |
22 |
- |
- |
9,941 |
9,457 | ||||
Other payables |
23 |
16,326 |
18,041 |
737,258 |
904,971 | ||||
TOTAL CURRENT LIABILITIES |
23,764 |
1,206,708 |
7,157,697 |
9,524,873 | |||||
NONCURRENT LIABILITIES |
|||||||||
Trade payables |
15 |
- |
- |
633 |
633 | ||||
Interest on debts |
16 |
- |
- |
130,813 |
120,659 | ||||
Interest on debentures |
17 |
- |
- |
25,889 |
16,487 | ||||
Borrowings |
16 |
- |
- |
11,107,624 |
11,592,206 | ||||
Debentures |
17 |
- |
- |
5,106,400 |
6,363,552 | ||||
Private pension plan |
18 |
- |
- |
857,031 |
474,318 | ||||
Deferred tax liabilities |
9 |
- |
- |
1,345,092 |
1,432,594 | ||||
Provision for tax, civil and labor risks |
21 |
879 |
1,635 |
613,267 |
569,534 | ||||
Derivatives |
33 |
- |
- |
129,299 |
33,205 | ||||
Sector financial liability |
8 |
- |
- |
357,164 |
- | ||||
Use of public asset |
22 |
- |
- |
87,666 |
83,124 | ||||
Provision for equity interest losses |
12 |
34,247 |
33,969 |
- |
- | ||||
Other payables |
23 |
28,904 |
31,961 |
180,457 |
191,148 | ||||
TOTAL NONCURRENT LIABILITIES |
64,030 |
67,565 |
19,941,335 |
20,877,460 | |||||
EQUITY |
24 |
||||||||
Issued capital |
5,741,284 |
5,348,312 |
5,741,284 |
5,348,312 | |||||
Capital reserves |
468,302 |
468,082 |
468,302 |
468,082 | |||||
Legal reserve |
694,058 |
694,058 |
694,058 |
694,058 | |||||
Statutory reserve - concession financial asset |
724,308 |
585,451 |
724,308 |
585,451 | |||||
Statutory reserve - working capital improvement |
- |
392,972 |
- |
392,972 | |||||
Accumulated comprehensive income |
(238,407) |
185,321 |
(238,407) |
185,321 | |||||
Retained earnings |
644,988 |
- |
644,988 |
- | |||||
8,034,534 |
7,674,196 |
8,034,534 |
7,674,196 | ||||||
Equity attributable to noncontrolling interests |
- |
- |
2,419,136 |
2,455,942 | |||||
TOTAL EQUITY |
8,034,534 |
7,674,196 |
10,453,670 |
10,130,138 | |||||
TOTAL LIABILITIES AND EQUITY |
8,122,327 |
8,948,469 |
37,552,701 |
40,532,471 |
The accompanying notes are an integral part of these interim financial statements.
28
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
CPFL ENERGIA S.A. | |||||||||||||||||
Statement of income for the periods ended on September 30, 2016 and 2015 | |||||||||||||||||
(in thousands of Brazilian reais, except for earnings per share) | |||||||||||||||||
Parent company |
Consolidated | ||||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||||
Note |
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||||||||
Net operating revenue |
26 |
- |
1,713 |
1 |
1,157 |
4,737,375 |
13,402,846 |
4,967,172 |
15,419,789 | ||||||||
Cost of electric energy services |
|||||||||||||||||
Cost of electric energy |
27 |
- |
- |
- |
- |
(2,770,513) |
(7,963,080) |
(3,140,041) |
(10,349,581) | ||||||||
Operating cost |
28 |
- |
- |
- |
- |
(562,184) |
(1,622,816) |
(486,029) |
(1,402,773) | ||||||||
Services rendered to third parties |
28 |
- |
- |
- |
- |
(324,990) |
(817,558) |
(252,540) |
(768,327) | ||||||||
|
|
|
|
|
|
|
| ||||||||||
Gross operating income |
- |
1,713 |
1 |
1,157 |
1,079,688 |
2,999,391 |
1,088,562 |
2,899,108 | |||||||||
Operating expenses |
28 |
||||||||||||||||
Sales expenses |
- |
- |
- |
- |
(123,680) |
(387,775) |
(118,385) |
(349,785) | |||||||||
General and administrative expenses |
(16,083) |
(37,025) |
(8,161) |
(23,422) |
(192,069) |
(607,198) |
(182,980) |
(621,666) | |||||||||
Other operating expense |
- |
- |
- |
- |
(74,560) |
(218,402) |
(65,041) |
(261,077) | |||||||||
Income from electric energy service |
(16,083) |
(35,312) |
(8,160) |
(22,265) |
689,379 |
1,786,017 |
722,157 |
1,666,580 | |||||||||
Equity in subsidiaries |
12 |
231,233 |
778,043 |
270,850 |
610,769 |
68,826 |
200,944 |
43,603 |
124,985 | ||||||||
Finance income (expense) |
29 |
||||||||||||||||
Income |
25,321 |
61,706 |
24,099 |
49,674 |
335,467 |
1,141,838 |
420,915 |
1,037,481 | |||||||||
Expense |
(5,689) |
(37,315) |
(18,385) |
(65,906) |
(706,920) |
(1,944,253) |
(767,451) |
(1,937,505) | |||||||||
19,631 |
24,391 |
5,714 |
(16,232) |
(371,453) |
(802,416) |
(346,537) |
(900,024) | ||||||||||
Income before taxes |
234,781 |
767,123 |
268,404 |
572,272 |
386,752 |
1,184,545 |
419,223 |
891,541 | |||||||||
Social contribution |
9 |
(198) |
120 |
(10) |
(1,455) |
(35,448) |
(125,116) |
(40,337) |
(104,972) | ||||||||
Income tax |
9 |
(3,017) |
(4,517) |
(781) |
(10,055) |
(82,031) |
(317,575) |
(98,665) |
(273,798) | ||||||||
(3,216) |
(4,397) |
(790) |
(11,509) |
(117,480) |
(442,691) |
(139,002) |
(378,770) | ||||||||||
Net income |
231,565 |
762,725 |
267,613 |
560,763 |
269,272 |
741,854 |
280,221 |
512,771 | |||||||||
Net income (loss) attributable to controlling shareholders |
231,565 |
762,725 |
267,613 |
560,763 | |||||||||||||
Net income (loss) attributable to noncontrolling shareholders |
37,707 |
(20,871) |
12,608 |
(47,992) | |||||||||||||
Earnings per share attributable to controlling shareholders - basic - R$ |
25 |
0.23 |
0.75 |
0.26 |
0.55 |
0.23 |
0.75 |
0.26 |
0.55 | ||||||||
Earnings per share attributable to controlling shareholders - diluted - R$ |
25 |
0.22 |
0.74 |
0.25 |
0.54 |
0.22 |
0.74 |
0.25 |
0.54 |
The accompanying notes are an integral part of these interim financial statements.
29
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
CPFL Energia S.A. | ||||||||
Statement of comprehensive income for the periods ended on September 30, 2016 and 2015 | ||||||||
(In thousands of Brazilian reais – R$) | ||||||||
Parent company | ||||||||
2016 |
2015 | |||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||||
Net income |
231,565 |
762,725 |
267,613 |
560,763 | ||||
Other comprehensive income |
||||||||
Items that will not be reclassified subsequently to profit or loss: |
||||||||
Equity on comprehensive income of subsidiaries |
- |
(404,363) |
121,419 |
121,419 | ||||
Comprehensive income of the period- parent company |
231,565 |
358,362 |
389,033 |
682,182 | ||||
Consolidated | ||||||||
2016 |
2015 | |||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||||
Net income |
269,272 |
741,854 |
280,221 |
512,771 | ||||
Other comprehensive income |
||||||||
Items that will not be reclassified subsequently to profit or loss: |
||||||||
- Actuarial gain/(loss) |
- |
(404,363) |
121,419 |
121,419 | ||||
Comprehensive income of the period - consolidated |
269,272 |
337,491 |
401,641 |
634,190 | ||||
Comprehensive income attributable to controlling shareholders |
231,565 |
358,362 |
389,033 |
682,182 | ||||
Comprehensive income attributable to non controlling shareholders |
37,707 |
(20,871) |
12,608 |
(47,992) |
The accompanying notes are an integral part of these interim financial statements.
30
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
CPFL Energia S.A. | |||||||||||||||||||||||
Statement of changes in shareholders' equity for the period ended on September 30, 2016 | |||||||||||||||||||||||
(In thousands of Brazilian reais – R$) | |||||||||||||||||||||||
Profit reserves |
Accumulated comprehensive income |
Net equity attributable to noncontrolling shareholders |
|
||||||||||||||||||||
|
Statutory reserve |
|
|
|
|
|
|
||||||||||||||||
Issued capital |
Capital reserves |
Legal reserve |
Concession financial asset |
Working capital improvement |
Deemed Cost |
Post-employment benefit obligation |
Retained earnings |
Total |
Accumulated comprehensive income |
Other equity |
|
Total Shareholders' 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 | |||||||||||
Net income for the period |
- |
- |
- |
- |
- |
- |
- |
762,725 |
762,725 |
- |
(20,871) |
741,854 | |||||||||||
Other comprehensive income: actuarial gain (loss) |
- |
- |
- |
- |
- |
- |
(404,363) |
- |
(404,363) |
- |
- |
(404,363) | |||||||||||
Internal changes of shareholders' equity |
- |
- |
- |
138,858 |
- |
(19,365) |
- |
(119,493) |
- |
(1,311) |
1,259 |
(53) | |||||||||||
Realization of deemed cost of fixed assets |
- |
- |
- |
- |
- |
(29,341) |
- |
29,341 |
- |
(1,987) |
1,987 |
- | |||||||||||
Tax on deemed cost realization |
- |
- |
- |
- |
- |
9,976 |
- |
(9,976) |
- |
675 |
(675) |
- | |||||||||||
Changes in statutory reserve for the period |
- |
- |
- |
138,858 |
- |
- |
- |
(138,858) |
- |
- |
- |
- | |||||||||||
Other changes in non-controlling shareholders |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(53) |
(53) | |||||||||||
Capital transactions with the shareholders |
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 proposal approved |
- |
- |
- |
- |
- |
- |
- |
- |
- |
(16,129) |
(16,129) | ||||||||||||
Capital increase in subsidiaries with no change in control |
- |
220 |
- |
- |
- |
- |
- |
- |
220 |
- |
247 |
467 | |||||||||||
Balance at September 30, 2016 |
5,741,284 |
468,082 |
694,058 |
724,308 |
- |
438,126 |
(676,534) |
644,988 |
8,034,534 |
14,009 |
2,405,128 |
10,453,670 |
CPFL Energia S.A. | |||||||||||||||||||||||
Statement of changes in shareholders' equity for the period ended on September 30, 2015 and December 31, 2014 | |||||||||||||||||||||||
(in thousands of Brazilian Reais) | |||||||||||||||||||||||
Net equity attributable to |
|||||||||||||||||||||||
Profit reserves |
Other comprehensive income |
noncontrolling shareholders |
|||||||||||||||||||||
|
|
Statutory reserve |
|
|
|
||||||||||||||||||
Capital |
Capital reserves |
Legal reserve |
Financial asset of concession |
Working capital improvement |
Deemed Cost |
Post-employment benefit obligation |
Retained earnings |
Total |
Other comprehensive income |
Other equity |
Total Shareholders' equity | ||||||||||||
Balance at December 31, 2014 (*) |
4,793,424 |
468,082 |
650,811 |
330,437 |
554,888 |
483,610 |
(337,718) |
- |
6,943,535 |
17,003 |
2,436,791 |
9,397,329 | |||||||||||
Total comprehensive income |
- |
- |
- |
- |
- |
- |
121,419 |
560,763 |
682,182 |
- |
(47,992) |
634,190 | |||||||||||
Net income for the year |
- |
- |
- |
- |
- |
- |
- |
560,763 |
560,763 |
- |
(47,992) |
512,771 | |||||||||||
Other comprehensive income: actuarial gain (loss) |
- |
- |
- |
- |
- |
- |
121,419 |
- |
121,419 |
- |
- |
121,419 | |||||||||||
Internal changes of shareholders' equity |
- |
- |
- |
166,448 |
- |
(19,670) |
- |
(146,778) |
- |
(1,246) |
1,246 |
- | |||||||||||
- Realization of deemed cost of fixed assets |
- |
- |
- |
- |
- |
(29,803) |
- |
29,803 |
- |
(1,888) |
1,888 |
- | |||||||||||
- Tax on deemed cost realization |
- |
- |
- |
- |
- |
10,133 |
- |
(10,133) |
- |
642 |
(642) |
- | |||||||||||
- Statutory reserve for the period |
- |
- |
- |
166,448 |
- |
- |
- |
(166,448) |
- |
- |
- |
- | |||||||||||
Capital transactions with the shareholders |
554,888 |
- |
- |
- |
(554,888) |
- |
- |
3,135 |
3,135 |
- |
1,444 |
4,579 | |||||||||||
- Capital increase |
554,888 |
- |
- |
- |
(554,888) |
- |
- |
- |
- |
- |
- |
- | |||||||||||
- Prescribed dividend |
- |
- |
- |
- |
- |
- |
- |
3,135 |
3,135 |
- |
- |
3,135 | |||||||||||
- Dividend proposal approved |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
1,444 |
1,444 | |||||||||||
Balance at September 30, 2015 |
5,348,312 |
468,082 |
650,811 |
496,885 |
- |
463,940 |
(216,298) |
417,120 |
7,628,852 |
15,757 |
2,391,489 |
10,036,096 |
The accompanying notes are an integral part of these interim financial statements.
31
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
CPFL Energia S/A | ||||||||
Statement of cash flow for the periods ended on September 30, 2016 and 2015 | ||||||||
(In thousands of Brazilian reais – R$) | ||||||||
Parent company |
Consolidated | |||||||
September 30, 2016 |
September 30, 2015 |
September 30, 2016 |
September 30, 2015 | |||||
Income, before income tax and social contribution |
767,123 |
572,272 |
1,184,545 |
891,541 | ||||
Adjustment to reconcile Income to cash provided by operating activities |
||||||||
Depreciation and amortization |
148 |
123 |
936,569 |
952,579 | ||||
Provision for tax, civil and labor risks |
261 |
1,452 |
180,905 |
185,740 | ||||
Allowance for doubtful accounts |
- |
- |
130,026 |
94,109 | ||||
Interest and monetary adjustment |
25,722 |
62,978 |
1,446,963 |
1,160,977 | ||||
Post-employment benefit loss (gain) |
- |
- |
51,483 |
49,036 | ||||
Interest in subsidiaries, associates and joint ventures |
(778,043) |
(610,769) |
(200,944) |
(124,985) | ||||
Loss (gain) on the write-off of noncurrent assets |
- |
- |
32,272 |
27,704 | ||||
Deferred taxes (PIS and COFINS) |
- |
- |
(8,933) |
4,834 | ||||
Other |
- |
- |
(1,269) |
13 | ||||
15,210 |
26,056 |
3,751,617 |
3,241,548 | |||||
Decrease (increase) in operating assets |
||||||||
Consumers, concessionaires and licensees |
- |
- |
(507,596) |
(1,177,907) | ||||
Dividend and interest on equity received |
1,300,253 |
607,349 |
86,282 |
14,041 | ||||
Taxes recoverable |
7,170 |
5,388 |
113,288 |
42,877 | ||||
Escrow deposits |
(64) |
(116) |
755,342 |
27,270 | ||||
Sector financial asset |
- |
- |
2,174,407 |
(1,271,800) | ||||
Receivables - Eletrobras |
- |
- |
101,456 |
(320,945) | ||||
Concession financial asset (transmission) |
- |
- |
(38,005) |
(37,322) | ||||
Other operating assets |
7,362 |
574 |
125,267 |
(40,229) | ||||
Increase (decrease) in operating liabilities |
||||||||
Trade payables |
(412) |
(334) |
(1,217,552) |
(121,336) | ||||
Other taxes and social contributions |
(135) |
344 |
(65,534) |
162,021 | ||||
Other liabilities with post-employment benefit obligation |
- |
- |
(64,990) |
(99,731) | ||||
Regulatory charges |
- |
- |
(567,176) |
1,435,125 | ||||
Tax, civil and labor risks paid |
(1,060) |
(249) |
(175,232) |
(142,956) | ||||
Sector financial liability |
- |
- |
247,857 |
(22,941) | ||||
Payables - CDE |
- |
- |
(37,509) |
32,562 | ||||
Other operating liabilities |
(4,771) |
(3,540) |
(7,202) |
116,790 | ||||
Cash flows provided by (used in) operations |
1,323,553 |
635,472 |
4,674,720 |
1,837,067 | ||||
Interests on borrowings and debentures paid |
(45,470) |
(36,858) |
(1,229,949) |
(1,183,201) | ||||
Income tax and social contribution paid |
(27,117) |
(9,368) |
(687,539) |
(252,969) | ||||
Net cash provided by (used in) operating activities |
1,250,966 |
589,246 |
2,757,232 |
400,897 | ||||
Investing activities |
||||||||
Capital increase in investments |
- |
(10) |
- |
- | ||||
Sale of interest in investees |
- |
- |
- |
10,454 | ||||
Additions to property, plant and equipment |
(572) |
(535) |
(845,229) |
(312,699) | ||||
Financial investments, pledges, funds and tied deposits |
(400) |
- |
(114,050) |
(114,598) | ||||
Additions to intangible assets |
- |
(11) |
(714,457) |
(618,693) | ||||
Sale of noncurrent assets |
- |
- |
- |
9,833 | ||||
Advance for future capital increase |
(71,020) |
(82,670) |
- |
- | ||||
Loans to subsidiaries and associates |
(43,624) |
11,095 |
44,881 |
84 | ||||
|
|
|
| |||||
Net cash flow provided by (used in) investing activities |
(115,616) |
(72,131) |
(1,628,855) |
(1,025,619) | ||||
Financing activities |
||||||||
Capital increase by noncontrolling shareholders |
- |
- |
247 |
- | ||||
Borrowings and debentures obtained |
- |
829,997 |
2,290,437 |
4,178,163 | ||||
Borrowings and debentures paid |
(888,408) |
(1,290,000) |
(3,766,909) |
(3,737,144) | ||||
Derivative instruments paid |
(4,711) |
- |
256,508 |
(91,676) | ||||
Business combination payment |
- |
- |
(18,752) |
(47,941) | ||||
Dividend and interest on shareholders’ equity paid |
(204,695) |
(151) |
(228,045) |
(761) | ||||
Net cash flow provided by (used in) financing activities |
(1,097,814) |
(460,154) |
(1,466,514) |
300,641 | ||||
Increase (decrease) in cash and cash equivalents |
37,535 |
56,961 |
(338,137) |
(324,081) | ||||
Opening balance of cash and cash equivalents |
424,192 |
799,775 |
5,682,802 |
4,357,455 | ||||
Closing balance of cash and cash equivalents |
461,727 |
856,736 |
5,344,665 |
4,033,374 |
The accompanying notes are an integral part of these interim financial statements.
32
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
CPFL Energia S/A | |||||||
Added value statements of income for the semesters ended on September 30, 2016 and 2015 | |||||||
(in thousands of Brazilian Reais) | |||||||
Parent company |
Consolidated | ||||||
Nine months 2016 |
Nine months 2015 |
Nine months 2016 |
Nine months 2015 | ||||
1. Revenues |
2,459 |
1,821 |
22,745,528 |
25,575,065 | |||
1.1 Operating revenues |
1,888 |
1,274 |
21,174,624 |
24,566,165 | |||
1.2 Revenue related to the construction of own assets |
572 |
547 |
883,981 |
335,240 | |||
1.3 Revenue from construction of concession infrastructure |
- |
- |
816,950 |
767,769 | |||
1.4 Allowance of doubtful accounts |
- |
- |
(130,026) |
(94,109) | |||
2. (-) Inputs |
(9,034) |
(8,305) |
(11,426,738) |
(13,420,679) | |||
2.1 Electricity purchased for resale |
- |
- |
(8,846,195) |
(11,461,733) | |||
2.2 Material |
(608) |
(562) |
(1,276,465) |
(762,096) | |||
2.3 Outsourced services |
(6,661) |
(5,566) |
(912,630) |
(790,899) | |||
2.4 Other |
(1,765) |
(2,176) |
(391,448) |
(405,952) | |||
3. Gross added value (1 + 2) |
(6,575) |
(6,484) |
11,318,790 |
12,154,385 | |||
4. Retentions |
(148) |
(123) |
(938,522) |
(953,434) | |||
4.1 Depreciation and amortization |
(148) |
(123) |
(752,249) |
(719,861) | |||
4.2 Amortization of intangible assets of concession |
- |
- |
(186,272) |
(233,574) | |||
5. Net added value generated (3 + 4) |
(6,723) |
(6,607) |
10,380,269 |
11,200,951 | |||
6. Added value received in transfer |
844,015 |
667,429 |
1,421,808 |
1,200,747 | |||
6.1 Financial Income |
65,972 |
56,660 |
1,220,863 |
1,075,762 | |||
6.2 Interest in subsidiaries, associates and joint ventures |
778,043 |
610,769 |
200,944 |
124,985 | |||
7. Added value to be distributed (5 + 6) |
837,292 |
660,822 |
11,802,074 |
12,401,696 | |||
8. Distribution of added value |
|||||||
8.1 Personnel and charges |
24,985 |
13,095 |
748,895 |
676,438 | |||
8.1.1 Direct remuneration |
14,583 |
7,281 |
463,889 |
416,616 | |||
8.1.2 Benefits |
9,338 |
5,047 |
246,535 |
226,078 | |||
8.1.3 Government severance indemnity fund for employees - F.G.T.S. |
1,064 |
766 |
38,471 |
33,743 | |||
8.2 Taxes, fees and contributions |
12,668 |
25,534 |
8,250,030 |
9,227,789 | |||
8.2.1 Federal |
12,636 |
25,512 |
4,614,222 |
5,805,988 | |||
8.2.2 Estate |
33 |
21 |
3,622,743 |
3,411,510 | |||
8.2.3 Municipal |
- |
- |
13,064 |
10,291 | |||
8.3 Lenders and lessors |
36,914 |
61,431 |
2,061,296 |
1,984,698 | |||
8.3.1 Interest |
36,877 |
61,321 |
2,016,427 |
1,945,596 | |||
8.3.2 Rental |
37 |
109 |
44,868 |
39,102 | |||
8.4 Interest on capital |
762,725 |
560,763 |
741,854 |
512,771 | |||
8.4.2 Retained earnings |
762,725 |
560,763 |
741,854 |
512,771 | |||
837,292 |
660,822 |
11,802,074 |
12,401,696 |
The accompanying notes are an integral part of these interim financial statements.
33
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 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 Rua Gomes de Carvalho, 1510 - 14º andar - Sala 142 - Vila Olímpia - São Paulo - 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 |
Interior of São Paulo |
234 |
4,291 |
30 years |
November 2027 | |||||||
Companhia Piratininga de Força e Luz ("CPFL Piratininga") |
Publicly-held corporation |
Direct |
Interior and coast of São Paulo |
27 |
1,689 |
30 years |
October 2028 | |||||||
Rio Grande Energia S.A. ("RGE") |
Publicly-held corporation |
Direct |
Interior of Rio Grande do Sul |
255 |
1,460 |
30 years |
November 2027 | |||||||
Companhia Luz e Força Santa Cruz ("CPFL Santa Cruz") |
Privately-held corporation |
Direct |
Interior of São Paulo and Paraná |
27 |
209 |
30 years |
July 2045 | |||||||
Companhia Leste Paulista de Energia ("CPFL Leste Paulista") |
Privately-held corporation |
Direct |
Interior of São Paulo |
7 |
58 |
30 years |
July 2045 | |||||||
Companhia Jaguari de Energia ("CPFL Jaguari") |
Privately-held corporation |
Direct |
Interior of São Paulo |
2 |
40 |
30 years |
July 2045 | |||||||
Companhia Sul Paulista de Energia ("CPFL Sul Paulista") |
Privately-held corporation |
Direct |
Interior of São Paulo |
5 |
84 |
30 years |
July 2045 | |||||||
Companhia Luz e Força de Mococa ("CPFL Mococa") |
Privately-held corporation |
Direct |
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. |
Publicly-held corporation |
Direct |
São Paulo and Goiás |
3 Hydropower (a) |
1,295 |
688 | ||||||
CERAN - Companhia Energética Rio das Antas |
Privately-held corporation |
Indirect |
Rio Grande do Sul |
3 Hydropower |
360 |
234 | ||||||
Foz do Chapecó Energia S.A. |
Privately-held corporation |
Indirect |
Santa Catarina and |
1 Hydropower |
855 |
436 | ||||||
Campos Novos Energia S.A. |
Privately-held corporation |
Indirect |
Santa Catarina |
1 Hydropower |
880 |
429 | ||||||
BAESA - Energética Barra Grande S.A. |
Publicly-held corporation |
Indirect |
Santa Catarina and |
1 Hydropower |
690 |
173 | ||||||
Centrais Elétricas da Paraíba S.A. |
Privately-held corporation |
Indirect |
Paraíba |
2 Thermal |
342 |
182 | ||||||
Paulista Lajeado Energia S.A. |
Privately-held corporation |
Indirect |
Tocantins |
1 Hydropower |
903 |
63 | ||||||
CPFL Energias Renováveis S.A. |
Publicly-held corporation |
Indirect |
(c) |
(c) |
(c) |
(c) | ||||||
CPFL Centrais Geradoras Ltda ("CPFL Centrais Geradoras") |
Limited liability company |
Direct |
São Paulo and Minas Gerais |
6 micro hydroelectric plant |
4 |
4 |
Energy commercialization |
Company type |
Core activity |
Equity interest | |||
CPFL Comercialização Brasil S.A. ("CPFL Brasil") |
Privately-held corporation |
Energy commercialization |
Direct | |||
Clion Assessoria e Comercialização de Energia Elétrica Ltda. |
Limited liability company |
Commercialization and provision of energy services |
Indirect | |||
CPFL Comercialização Cone Sul S.A. ("CPFL Cone Sul") |
Privately-held corporation |
Energy commercialization |
Indirect | |||
CPFL Planalto Ltda. ("CPFL Planalto") |
Limited liability company |
Energy commercialization |
Direct | |||
CPFL Brasil Varejista S.A. ("CPFL Brasil Varejista") |
Privately-held corporation |
Energy commercialization |
Indirect |
34
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
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 ESCO") |
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") (d) |
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 output of the Serra da Mesa SHP, for which Furnas holds the concession. The Cariobinha and Carioba thermoelectric plant ventures are currently deactivated pending a decision by the Mines and Energy Ministry concerning early termination of the concessions, and are not included in the table.
b) Paulista Lajeado has a 7% share 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, 2016, CPFL Renováveis had a portfolio of 126 projects with installed capacity of 2,930,8 MW (1,977,8 MW in operation), as follows:
· Hydropower generation: 47 small hydropower plants - SHP’s (557.7MW) with 39 SHPs in operation (423 MW) and 8 SHPs under development (134.7MW);
· Wind power generation: 70 projects (1,977.7 MW) with 39 projects in operation (1,130.0 MW) and 31 projects under construction/development (847.7 MW);
· Biomass power generation: 8 plants in operation (394.3 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 interim financial statements.
( 2 ) PRESENTATION OF THE INTERIM FINANCIAL STATEMENTS
2.1 Basis of presentation
These individual (parent company) and consolidated interim financial statements have been prepared and are presented in conformity with International Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board – IASB, and also based on the standards issued by the Brazilian Securities Commission (Comissão de Valores Mobiliários – CVM) applicable to Quarterly Financial Information (ITR), in accordance with Technical Pronouncement CPC 21 (R1) - Demonstração Intermediária.
35
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
The Company 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 international Financial Reporting Standards. The accounting policies adopted in preparing these individuals and consolidated Interim Financial Statements are consistent with those adopted in December 31, 2015, except for the change of practice in relation to Intangible Assets (Note 3), and should be read together with those statements.
The consolidated interim Management states that all material information of the financial statements is disclosed and corresponds to what is used in the Company's management.
The financial statements were approved by Management and authorized for issue on November 7, 2016.
2.2 Basis of measurement
The financial statements have been prepared on the historical cost basis except for the following items recorded in the statements of income: 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 33 – Financial Instruments.
2.3 Use of estimates and judgments
The preparation of the interim financial statements requires the Company’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 Company’s management reviews 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;
· Note 8 – Sector financial asset and liability;
· Note 9 – Deferred tax assets and liabilities;
· Note 10 – Concession financial asset;
· Note 11 – Other receivables (Allowance for doubtful debts);
· Note 13 – Property, plant and equipment and impairment;
· Note 14 – Intangible assets and impairment;
· Note 18 – Private pension plan;
· Note 21 – Provision for tax, civil and labor risks and escrow deposits;
· Note 23 – Other payables (Provision for socio environmental costs)
· Note 26 – Net operating revenue;
· Note 27 – Cost of electric energy; and
· Note 33 – Financial instruments.
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
2.4 Functional currency and presentation currency
The Company’s functional currency is the Brazilian Real, and the interim individual and consolidated financial statements are 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 Company’s management uses 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.
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 stated at cost by the subsidiary Paulista Lajeado in Investco S.A., all other entities are fully consolidated.
At September 30, 2016 and December, 31 2015, and quarters and nine months ended in September 30, 2016 and 2015 noncontrolling interests recognized in the interim financial statements refer to the 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 financial statements in accordance with accounting practices adopted in Brazil and as supplementary information to the financial statements in accordance with IFRS, as the statement is neither provided for nor mandatory in accordance with IFRS.
( 3 ) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies used in preparing the Company’s interim financial statements were prepared based on the same accounting policies as described in Notes 3.1 to 3.18, disclosed in financial statements for the year ended in December 31, 2015.
In relation to the accounting policies to intangible assets, described in Note 3.5 of the December 31, 2015 financial statements, and in accordance with the changes to IAS 16/CPC 27 and IAS 38/CPC 04 (R1), until that date the portion derived from business combinations corresponding to the right to explore the concession was amortized over the remaining term of the respective exploration rights, on a straight-line basis or based on the net projected profit curve of the concessionaires, as applicable. From January 1, 2016 the Company will amortize the intangible concession assets prospectively on a straight-line basis over the remaining period of the concessions, in all cases. Accordingly, there was a reduction of R$ 18,450 in amortization of intangible concession assets expense for the nine months ended in September 30, 2016 (R$ 6,150 for the third quarter of 2016).
37
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 4 ) DETERMINATION OF FAIR VALUES
A number of the Company’s accounting policies and disclosures require the determination of fair value, 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, further information on the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
Accordingly, the Company measures fair value in accordance with IFRS 13 / CPC 46, which defines the fair value as the price estimate for an unforced transaction for the sale of the asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions.
- 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 on 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 values are valued based on quoted prices in an active market, or, if such prices were not available, assessed using pricing models, applied individually for each transaction, taking into consideration the future payment flows, based on the conditions contracted, discounted to present value at market interest rate curves, based on information obtained, when available, from the BM&FBOVESPA S.A – Bolsa de Valores, Mercadorias e Futuros (“BM&FBOVESPA”) and “Associação Brasileira das Entidades dos Mercados Financeiros e de Capitais – ANBIMA” (note 33), and also includes the debtor's credit rating.
Financial assets classified as available-for-sale refer to the right to compensation, to be paid by the Federal Government regarding the assets of the distribution concessionaires at the end of the concession agreement. The methodology adopted for marking these assets to fair value is based on the tariff review process for distributors. This review, conducted every four or five years according to each concessionaire, involves assessing the replacement price for 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 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 estimates for adjusting the original base to the fair value at subsequent dates, in accordance with the tariff review process.
( 5 ) CASH AND CASH EQUIVALENTS
Parent company |
Consolidated | ||||||
September 30, 2016 |
December 31, 2015 |
September 30, 2016 |
December 31, 2015 | ||||
Bank balances |
729 |
311 |
65,193 |
148,224 | |||
Short-term financial investments |
460,998 |
423,881 |
5,279,472 |
5,534,578 | |||
Overnight investment (a) |
- |
- |
9,681 |
26,914 | |||
Bank certificates of deposit (b) |
- |
- |
1,910,785 |
1,255,666 | |||
Repurchase agreements secured on debentures (b) |
- |
- |
503 |
433,693 | |||
Investment funds (c) |
460,998 |
423,881 |
3,358,503 |
3,818,305 | |||
Total |
461,727 |
424,192 |
5,344,665 |
5,682,802 |
a) Current account balances, which earn daily interest by investment in repurchase agreements secured on debentures and interest of 15% of the variation in the Interbank Certificate of Deposit – (CDI).
38
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
b) Short-term investments in Bank Certificates of Deposit (CDB) and repurchase agreements secured on debentures with major financial institutions that operate in the Brazilian financial market, with daily liquidity, low credit risk and interest equivalent, on average, to 101.7% of the CDI.
c) Exclusive Fund investments, with daily liquidity and interest equivalent, on average, of 100.3% 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.
( 6 ) CONSUMERS, CONCESSIONAIRES AND LICENSEES
In the consolidated interim financial statements, the balance derives mainly from the supply of electric energy. The following table shows the breakdown at September 30, 2016 and December 31, 2015:
Consolidated | ||||||||||
Amounts |
Past due |
Total | ||||||||
coming due |
until 90 days |
> 90 days |
September 30, 2016 |
December 31, 2015 | ||||||
Current |
||||||||||
Consumer classes |
||||||||||
Residential |
510,007 |
361,998 |
61,908 |
933,912 |
793,826 | |||||
Industrial |
265,952 |
79,255 |
65,994 |
411,201 |
365,420 | |||||
Commercial |
210,206 |
64,261 |
31,689 |
306,155 |
263,259 | |||||
Rural |
56,665 |
11,032 |
2,314 |
70,012 |
64,257 | |||||
Public administration |
54,514 |
18,776 |
4,466 |
77,756 |
79,953 | |||||
Public lighting |
46,210 |
12,587 |
4,746 |
63,542 |
78,204 | |||||
Public utilities |
65,403 |
17,385 |
10,229 |
93,018 |
80,706 | |||||
Billed |
1,208,957 |
565,294 |
181,346 |
1,955,596 |
1,725,625 | |||||
Unbilled |
1,001,033 |
- |
- |
1,001,033 |
881,307 | |||||
Financing of consumers' debts |
123,499 |
21,450 |
43,435 |
188,385 |
197,035 | |||||
CCEE transactions |
158,853 |
669 |
9 |
159,531 |
169,561 | |||||
Concessionaires and licensees |
351,921 |
21,961 |
6,664 |
380,546 |
331,105 | |||||
Other |
24,852 |
- |
- |
24,852 |
10,770 | |||||
2,869,115 |
609,374 |
231,454 |
3,709,943 |
3,315,403 | ||||||
Allowance for doubtful debts |
(169,140) |
(140,485) | ||||||||
Total |
3,540,804 |
3,174,918 | ||||||||
Non current |
||||||||||
Financing of consumers' debts |
110,364 |
- |
- |
110,364 |
101,585 | |||||
Free energy |
5,265 |
- |
- |
5,265 |
4,768 | |||||
CCEE transactions |
41,301 |
- |
- |
41,301 |
41,301 | |||||
156,930 |
- |
- |
156,930 |
147,654 | ||||||
Allowance for doubtful debts |
(15,890) |
(18,708) | ||||||||
Total |
141,040 |
128,946 |
Allowance for doubtful debts
Movements in the allowance for doubtful debts are shown below:
39
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consumers, concessionaires and licensees |
Other |
Total | |||
As of December 31, 2015 |
(159,193) |
(14,441) |
(173,634) | ||
Allowance - recognition (reversal) |
(186,197) |
(871) |
(187,068) | ||
Recovery of revenue |
56,607 |
434 |
57,041 | ||
Write-off of accrued receivables |
103,752 |
2,844 |
106,596 | ||
As of September 30, 2016 |
(185,030) |
(12,033) |
(197,064) | ||
Current |
(169,140) |
(12,033) |
(181,173) | ||
Noncurrent |
(15,890) |
- |
(15,890) |
( 7 ) TAXES RECOVERABLE
Parent company |
Consolidated | ||||||
September 30, 2016 |
December 31, 2015 |
September 30, 2016 |
December 31, 2015 | ||||
Current |
|||||||
Prepayments of social contribution - CSLL |
4,845 |
- |
7,837 |
35,019 | |||
Prepayments of income tax - IRPJ |
1,210 |
2,171 |
6,014 |
76,920 | |||
Withholding income tax - IRRF on interest on capital |
1,807 |
10,776 |
1,807 |
11,150 | |||
Income tax and social contribution to be offset |
46,621 |
42,456 |
112,549 |
100,658 | |||
Withholding income tax - IRRF |
20,717 |
16,996 |
124,354 |
125,392 | |||
State VAT - ICMS to be offset |
- |
- |
69,253 |
63,450 | |||
Social Integration Program - PIS |
50 |
74 |
7,883 |
8,543 | |||
Contribution for Social Security financing - COFINS |
256 |
411 |
35,342 |
40,126 | |||
National Social Security Institute - INSS |
- |
- |
7,877 |
12,660 | |||
Other |
- |
- |
3,932 |
1,292 | |||
Total |
75,507 |
72,885 |
376,849 |
475,211 | |||
Noncurrent |
|||||||
Social contribution to be offset - CSLL |
- |
- |
54,782 |
57,439 | |||
Income tax to be offset - IRPJ |
- |
- |
10,037 |
23,765 | |||
State VAT - ICMS to be offset |
- |
- |
95,378 |
81,584 | |||
Social Integration Program - PIS |
- |
- |
120 |
350 | |||
Contribution for Social Security Funding - COFINS |
- |
- |
555 |
1,613 | |||
National Social Security Institute - INSS |
- |
- |
1,874 |
- | |||
Other |
- |
- |
3,356 |
2,409 | |||
Total |
- |
- |
166,102 |
167,159 |
40
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 8 ) SECTOR FINANCIAL ASSETS AND LIABILITIES
The breakdown and changes for the period in the balances of sector financial asset and liability are as follows:
Operating revenue |
Finance income or expense |
Receipt |
|||||||||
As of December 31, 2015 |
Constitution |
Realization |
Monetary adjustment |
Tariff flag |
As of September 30,2016 | ||||||
Parcel "A" |
|||||||||||
CVA (*) |
|||||||||||
CDE (**) |
517,232 |
(532,362) |
(256,355) |
6,184 |
- |
(265,300) | |||||
Electric energy cost |
6,091 |
18,513 |
(299,146) |
(71,503) |
(400,331) |
(746,376) | |||||
ESS and EER (***) |
(274,209) |
(86,587) |
313,853 |
(37,933) |
(269,256) |
(354,133) | |||||
Proinfa |
(6,148) |
49,313 |
(6,710) |
4,741 |
- |
41,196 | |||||
Basic network charges |
96,474 |
3,499 |
(76,361) |
(2,085) |
- |
21,527 | |||||
Pass-through from Itaipu |
1,320,695 |
(169,129) |
(561,688) |
165,490 |
- |
755,368 | |||||
Transmission from Itaipu |
15,469 |
6,338 |
(9,367) |
1,599 |
- |
14,040 | |||||
Neutrality of industry charges |
190,273 |
169,542 |
(88,819) |
13,216 |
- |
284,212 | |||||
Overcontracting |
144,705 |
(71,188) |
28,639 |
(34,903) |
(438) |
66,815 | |||||
Other financial components |
(56,618) |
(147,292) |
(36,934) |
(11,420) |
- |
(252,263) | |||||
Total |
1,953,964 |
(759,353) |
(992,886) |
33,386 |
(670,025) |
(434,916) | |||||
Current assets |
1,464,019 |
239,341 | |||||||||
Noncurrent assets |
489,945 |
- | |||||||||
Current liabilities |
- |
(317,091) | |||||||||
Noncurrent liabilities |
- |
(357,164) |
(*) Deferred tariff costs and gains variations from Parcel “A” items
(**) Energy development account
(***) System service charge (ESS) and reserve energy charge (EER)
The details of the nature of each sector financial asset and liability are provided in Note 8 to the December 31, 2015 financial statements.
41
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 9 ) DEFERRED TAX ASSETS AND LIABILITIES
9.1 Breakdown of tax credits and debits
Parent company |
Consolidated | ||||||
September 30, 2016 |
December 31, 2015 |
September 30, 2016 |
December 31, 2015 | ||||
Social contribution credit/(debit) |
|||||||
Tax losses carryforwards |
44,620 |
46,602 |
85,036 |
152,200 | |||
Tax benefit of merged goodwill |
- |
- |
88,322 |
93,467 | |||
Nondeductible temporary differences |
807 |
(5,918) |
(388,252) |
(547,066) | |||
Subtotal |
45,427 |
40,684 |
(214,894) |
(301,399) | |||
Income tax credit / (debit) |
|||||||
Tax losses carryforwards |
109,385 |
116,438 |
232,089 |
417,600 | |||
Tax benefit of merged goodwill |
- |
- |
302,845 |
323,421 | |||
Nondeductible temporary differences |
2,241 |
(16,733) |
(1,077,546) |
(1,519,170) | |||
Subtotal |
111,626 |
99,705 |
(542,611) |
(778,150) | |||
PIS and COFINS credit/(debit) |
|||||||
Nondeductible temporary differences |
- |
- |
(9,226) |
(18,159) | |||
Total |
157,053 |
140,389 |
(766,732) |
(1,097,708) | |||
Total tax credit |
157,053 |
140,389 |
578,360 |
334,886 | |||
Total tax debit |
- |
- |
(1,345,092) |
(1,432,594) |
The estimate of recovery of the deferred tax credits recorded in noncurrent assets, derived from temporary non-deductible differences and tax benefit of the merged goodwill and tax loss carry forwards, is based on the projections of future profit or loss, approved by the Board of Directors and reviewed by the Audit Committee. A breakdown of which is provided in the financial statements of December 31, 2015. To reflect adequately the effective tax rate on net income, deferred tax credits on losses are registered monthly for the companies with positive projections, in accordance with the above-mentioned studies.
9.2 Tax benefit of merged goodwill
Refers to the tax credit calculated on the goodwill derived from the acquisition of subsidiaries, as shown in the following table, which had been incorporated and is recognized in accordance with CVM Instructions No. 319/1999 and No. 349/2001 and ICPC 09 (R2) - Individual Interim financial statements, Separate Interim financial statements, Consolidated Interim financial statements and Application of the Equity Method. The benefit is realized proportionally to the tax amortization of the merged goodwill that gave rise to it, in conformity with CPC 27 and CPC 04 (R1) - Clarification of acceptable depreciation and amortization methods, during the remaining concessions period, as shown in note 14.
Consolidated | |||||||
September 30, 2016 |
December 31, 2015 | ||||||
Social contribution |
Income tax |
Social contribution |
Income tax | ||||
CPFL Paulista |
51,654 |
143,482 |
55,123 |
153,119 | |||
CPFL Piratininga |
12,509 |
42,932 |
13,286 |
45,597 | |||
RGE |
24,159 |
99,769 |
25,058 |
106,324 | |||
CPFL Geração |
- |
16,662 |
- |
18,380 | |||
Total |
88,322 |
302,845 |
93,467 |
323,421 |
42
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
9.3 Accumulated balances on nondeductible temporary differences
Consolidated | |||||||||||
September 30, 2016 |
December 31, 2015 | ||||||||||
Social contribution |
Income tax |
PIS/COFINS |
Social contribution |
Income tax |
PIS/COFINS | ||||||
Nondeductible temporary differences |
|||||||||||
Provision for tax, civil and labor risks |
35,694 |
99,139 |
- |
33,806 |
93,906 |
- | |||||
Private pension fund |
1,620 |
4,501 |
- |
1,867 |
5,185 |
- | |||||
Allowance for doubtful debts |
17,994 |
49,984 |
- |
15,680 |
43,556 |
- | |||||
Free energy supply |
7,508 |
20,856 |
- |
6,897 |
19,158 |
- | |||||
Research and development and energy efficiency programs |
17,834 |
49,539 |
- |
16,060 |
44,612 |
- | |||||
Personnel-related provisions |
2,045 |
5,682 |
- |
2,578 |
7,161 |
- | |||||
Depreciation rate difference |
6,349 |
17,635 |
- |
6,797 |
18,880 |
- | |||||
Derivatives |
(54,680) |
(151,889) |
- |
(219,524) |
(609,788) |
- | |||||
Recognition of concession - adjustment of intangible asset (IFRS/CPC) |
(8,227) |
(22,852) |
- |
(9,031) |
(25,085) |
- | |||||
Recognition of concession - adjustment of financial asset (IFRS/CPC) |
(93,071) |
(257,402) |
(5,646) |
(73,241) |
(202,271) |
(18,450) | |||||
Actuarial losses (IFRS/CPC) |
26,352 |
73,198 |
- |
26,351 |
73,199 |
- | |||||
Financial instruments (IFRS/CPC) |
(10,744) |
(29,844) |
- |
(8,542) |
(23,726) |
- | |||||
Accelerated depreciation |
(59) |
(165) |
- |
(34) |
(95) |
- | |||||
Others |
3,939 |
10,758 |
(3,580) |
3,828 |
9,920 |
291 | |||||
Nondeductible temporary differences - accumulated comprehensive income |
|||||||||||
Property, plant and equipment - adjustment of deemed cost (IFRS/CPC) |
(56,034) |
(155,651) |
- |
(58,484) |
(162,456) |
- | |||||
Actuarial losses (IFRS/CPC) |
10,463 |
29,065 |
- |
10,464 |
29,064 |
- | |||||
Nondeductible temporary differences - Business combination - CPFL Renováveis |
|||||||||||
Deferred taxes - asset: |
|||||||||||
Fair value of property, plant and equipment (negative value added of assets) |
23,140 |
64,277 |
- |
24,248 |
67,355 |
- | |||||
Deferred taxes - liability: |
|||||||||||
Value added derived from determination of deemed cost |
(27,887) |
(77,463) |
- |
(29,132) |
(80,922) |
- | |||||
Value added of assets received from the former ERSA |
(84,014) |
(233,374) |
- |
(86,495) |
(240,264) |
- | |||||
Intangible asset - exploration right/authorization in indirect subsidiaries acquired |
(186,066) |
(516,850) |
- |
(193,927) |
(538,685) |
- | |||||
Other temporary differences |
(20,408) |
(56,689) |
- |
(17,233) |
(47,874) |
- | |||||
Total |
(388,252) |
(1,077,546) |
(9,226) |
(547,066) |
(1,519,170) |
(18,159) |
9.4 Reconciliation of the income tax and social contribution amounts recognized in the statements of profit or loss for the quarters and In the nine months ended in September 30, 2016 and 2015:
Parent company |
Consolidated | ||||||||||||||
Social contribution |
Social contribution | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
3rd quarter |
|
Nine months |
3rd quarter |
|
Nine months |
3rd quarter |
|
Nine months |
3rd quarter |
|
Nine months | ||||
Income before taxes |
234,781 |
767,123 |
268,404 |
572,272 |
386,752 |
1,184,545 |
419,223 |
891,541 | |||||||
Adjustments to reflect effective rate: |
|||||||||||||||
Equity in subsidiaries |
(231,233) |
(778,043) |
(270,850) |
(610,769) |
(68,826) |
(200,944) |
(43,603) |
(124,985) | |||||||
Amortization of intangible asset acquired |
(3,382) |
(10,146) |
(4,938) |
(18,239) |
12,162 |
36,486 |
17,019 |
67,465 | |||||||
Tax incentives - PIIT (*) |
- |
- |
- |
- |
(2,306) |
(2,556) |
(2,587) |
(5,712) | |||||||
Effect of presumed profit regime |
- |
- |
- |
- |
(98,114) |
(117,191) |
(85,192) |
(73,558) | |||||||
Adjustment of revenue from excess demand and excess reactive power |
- |
- |
- |
- |
27,545 |
90,011 |
27,070 |
87,754 | |||||||
Interest on capital |
- |
12,048 |
- |
62,339 |
- |
- |
- |
- | |||||||
Other permanent additions (exclusions), net |
2,038 |
7,690 |
6,695 |
9,764 |
234 |
2,544 |
(4,933) |
25,905 | |||||||
Tax base |
2,204 |
(1,328) |
(690) |
15,368 |
257,447 |
992,895 |
326,997 |
868,411 | |||||||
Statutory rate |
9% |
9% |
9% |
9% |
9% |
9% |
9% |
9% | |||||||
Tax credit/(debit) |
(198) |
120 |
62 |
(1,383) |
(23,170) |
(89,361) |
(29,430) |
(78,157) | |||||||
Tax credit recorded (not recorded) |
- |
- |
(72) |
(72) |
(12,279) |
(35,756) |
(10,907) |
(26,815) | |||||||
Total |
(198) |
120 |
(10) |
(1,455) |
(35,448) |
(125,116) |
(40,337) |
(104,972) | |||||||
Current |
2,601 |
(4,623) |
74 |
(974) |
(63,029) |
(213,352) |
(23,097) |
(78,435) | |||||||
Deferred |
(2,799) |
4,743 |
(83) |
(481) |
27,580 |
88,236 |
(17,240) |
(26,537) | |||||||
Parent company |
Consolidated | ||||||||||||||
Income tax |
Income tax | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
3rd quarter |
|
Nine months |
3rd quarter |
|
Nine months |
3rd quarter |
|
Nine months |
3rd quarter |
|
Nine months | ||||
Income before taxes |
234,781 |
767,123 |
268,404 |
572,272 |
386,752 |
1,184,545 |
419,223 |
891,541 | |||||||
Adjustments to reflect effective rate: |
|||||||||||||||
Equity in subsidiaries |
(231,233) |
(778,043) |
(270,850) |
(610,769) |
(68,826) |
(200,944) |
(43,603) |
(124,985) | |||||||
Amortization of intangible asset acquired |
- |
- |
- |
- |
15,689 |
47,067 |
22,241 |
86,556 | |||||||
Tax incentives - PIIT (*) |
- |
- |
- |
- |
(2,306) |
(2,556) |
(2,587) |
(5,712) | |||||||
Effect of presumed profit regime |
- |
- |
- |
- |
(117,838) |
(161,477) |
(99,262) |
(113,350) | |||||||
Adjustment of revenue from excess demand and excess reactive power |
- |
- |
- |
- |
27,545 |
90,011 |
27,070 |
87,648 | |||||||
Interest on capital |
- |
12,048 |
- |
62,339 |
- |
- |
- |
- | |||||||
Tax incentive - operating profit |
- |
- |
- |
- |
(45,045) |
(59,056) |
(36,200) |
(46,528) | |||||||
Other permanent additions (exclusions), net |
8,520 |
16,940 |
3,893 |
14,700 |
(4,371) |
(24,542) |
(13,910) |
22,249 | |||||||
Tax base |
12,068 |
18,068 |
1,447 |
38,543 |
191,600 |
873,048 |
272,972 |
797,419 | |||||||
Statutory rate |
25% |
25% |
25% |
25% |
25% |
25% |
25% |
25% | |||||||
Tax credit/(debit) |
(3,017) |
(4,517) |
(362) |
(9,636) |
(47,900) |
(218,262) |
(68,243) |
(199,356) | |||||||
Tax credit recorded (not recorded) |
- |
- |
(419) |
(419) |
(34,132) |
(99,313) |
(30,422) |
(74,442) | |||||||
Total |
(3,017) |
(4,517) |
(781) |
(10,055) |
(82,031) |
(317,575) |
(98,665) |
(273,798) | |||||||
Current |
5,500 |
(16,438) |
(168) |
(6,777) |
(156,464) |
(557,938) |
(48,704) |
(192,021) | |||||||
Deferred |
(8,517) |
11,921 |
(613) |
(3,278) |
74,432 |
240,363 |
(49,961) |
(81,777) |
(*) Technologic innovation program
43
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 10 ) FINANCIAL ASSET OF CONCESSION
Distribution |
Transmission |
Consolidated | |||
As of December 31, 2015 |
3,483,713 |
123,391 |
3,607,104 | ||
Current |
- |
9,630 |
9,630 | ||
Noncurrent |
3,483,713 |
113,761 |
3,597,474 | ||
Additions |
390,747 |
35,205 |
425,952 | ||
Adjustment of expected cash flow |
209,683 |
- |
209,683 | ||
Adjustment - financial asset measured at amortized cost |
- |
11,171 |
11,171 | ||
Cash inputs - RAP |
- |
(7,103) |
(7,103) | ||
Disposals |
(13,350) |
- |
(13,350) | ||
|
|||||
As of September 30, 2016 |
4,070,793 |
162,664 |
4,233,457 | ||
Current |
- |
10,563 |
10,563 | ||
Noncurrent |
4,070,793 |
152,101 |
4,222,894 |
The amount refers to the financial asset corresponding to the right established in the concession agreements of the energy distributors (measured at fair value) and transmitters (measured at amortized cost) to receive cash (i) by compensation upon the return of the assets to the granting authority at the end of the concession, and (ii) the transmitter's right to receive cash throughout the concession through allowed annual revenue ("RAP").
For energy distributors, 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. Additionally, the difference to adjust the balance to its expected cash flows is recognized against a finance income and/or cost account in the statement of profit or loss for the period, based on the fair value (new replacement value - “VNR”) (finance income of R$ 209,683 in the nine months ended in September 30, 2016 and R$ 262,644 in the nine months ended in September 30, 2015).
For the energy transmitters, 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 during the remaining concession period and by compensation upon the return of the assets to the granting authority at the end of the concession. The adjustment of R$ 11,171, (R$ 8,120 in the nine months ended in September 30, 2015) is recognized against other operating income.
44
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 11 ) OTHER RECEIVABLES
Consolidated | |||||||
Current |
Noncurrent | ||||||
September 30, 2016 |
December 31, 2015 |
September 30, 2016 |
December 31, 2015 | ||||
Advances - Fundação CESP |
11,958 |
10,567 |
- |
- | |||
Advances to suppliers |
9,795 |
10,666 |
- |
- | |||
Pledges, funds and restricted deposits |
20,050 |
649 |
504,827 |
433,014 | |||
Orders in progress |
160,429 |
274,605 |
- |
- | |||
Services rendered to third parties |
9,040 |
6,987 |
- |
- | |||
Energy pre-purchase agreements |
- |
- |
29,518 |
31,375 | |||
Collection agreements |
1,145 |
90,451 |
- |
- | |||
Prepaid expenses |
74,258 |
61,602 |
24,111 |
19,579 | |||
GSF Renegotiation |
10,255 |
8,724 |
27,284 |
29,392 | |||
Receivables - Eletrobras |
240,325 |
341,781 |
- |
- | |||
Receivables - business combination |
- |
- |
13,950 |
13,950 | |||
Advances to employees |
25,790 |
12,509 |
- |
- | |||
Indemnities for claims |
- |
49,937 |
- |
- | |||
Leases |
21,721 |
12,883 |
50,912 |
34,504 | |||
Other |
101,478 |
90,653 |
35,585 |
34,685 | |||
(-) Allowance for doubtful debts (Note 6) |
(12,033) |
(12,460) |
- |
(1,981) | |||
Total |
674,211 |
959,553 |
686,187 |
594,519 |
Renegotiation of GSF - Refers to the premium paid in advance by the subsidiaries Ceran, CPFL Jaguari Geração (Paulista Lajeado) and CPFL Renováveis in relation to transfer of the hydrological risk to the Tariff Flag Resources Centralizing Account (“CCRBT”), amortized on a straight-line basis against other operating costs.
Receivables – Eletrobrás: refer to: (i) low income subsidies totaling R$ 15,262 (R$ 18,190 at December 31, 2015), (ii) other tariff discounts granted to consumers amounting to R$ 106,601 (R$ 323,591 as of December 31, 2015), and (iii) tariff discounts - injunctions amounting to R$ 118,462 (Note 26.3).
On May 2015, the distribution subsidiaries obtained preliminary injunctions authorizing non-payment of amounts owed for Energy Development Account (CDE) quotas up to the limit of the balances receivable from Eletrobrás relating to the CDE injection. In the nine months ended in September 30 2016 the subsidiaries carried out matching of accounts of the accounts receivable by way of CDE injection and the CDE accounts payable (note 19) the amount of R$ 428,387.
( 12 ) INVESTMENTS
Parent company |
Consolidated | ||||||
September 30, 2016 |
December 31, 2015 |
September 30, 2016 |
December 31, 2015 | ||||
Permanent equity interests - equity method |
|||||||
By equity method of the subsidiary |
5,891,468 |
6,178,637 |
1,428,897 |
1,235,832 | |||
Value-added of assets, net |
708,310 |
755,345 |
11,365 |
11,799 | |||
Goodwill |
6,054 |
6,054 |
- |
- | |||
Total |
6,605,832 |
6,940,036 |
1,440,262 |
1,247,631 |
12.1 Permanent equity interests – equity method
The main information on investments in direct permanent equity interests is as follows:
45
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
September 30, 2016 |
September 30, 2016 |
December 31, 2015 |
Nine months 2016 |
Nine months 2015 | ||||||||||||||
Investment |
Number of shares (thousand) |
Total assets |
Capital |
|
Shareholders' equity |
Profit or loss for the period |
Shareholders equity interest |
Equity in subsidiaries | ||||||||||
CPFL Paulista |
880,653 |
8,949,770 |
905,948 |
1,026,842 |
235,118 |
1,026,842 |
1,352,393 |
235,118 |
221,667 | |||||||||
CPFL Piratininga |
53,096,770 |
3,581,628 |
235,556 |
407,545 |
112,604 |
407,545 |
537,670 |
112,604 |
150,216 | |||||||||
CPFL Santa Cruz |
371,772 |
409,146 |
74,862 |
134,658 |
17,209 |
134,658 |
131,149 |
17,209 |
24,563 | |||||||||
CPFL Leste Paulista |
892,772 |
167,889 |
29,212 |
48,606 |
6,485 |
48,606 |
46,301 |
6,485 |
7,887 | |||||||||
CPFL Sul Paulista |
454,958 |
184,527 |
28,492 |
56,286 |
5,846 |
56,286 |
55,233 |
5,846 |
9,501 | |||||||||
CPFL Jaguari |
209,294 |
133,715 |
20,632 |
28,690 |
6,422 |
28,690 |
28,521 |
6,422 |
1,687 | |||||||||
CPFL Mococa |
117,199 |
109,622 |
16,004 |
30,687 |
5,905 |
30,687 |
29,205 |
5,905 |
4,086 | |||||||||
RGE |
1,019,790 |
4,165,992 |
1,213,180 |
1,577,784 |
79,132 |
1,577,784 |
1,580,807 |
79,132 |
91,861 | |||||||||
CPFL Geração |
205,492,020 |
6,785,688 |
1,043,922 |
2,278,726 |
259,217 |
2,278,726 |
2,169,922 |
259,217 |
83,872 | |||||||||
CPFL Jaguari Geração (*) |
40,108 |
43,754 |
40,108 |
43,606 |
3,498 |
43,606 |
42,729 |
3,498 |
581 | |||||||||
CPFL Brasil |
2,999 |
458,195 |
2,999 |
76,348 |
71,355 |
76,348 |
51,779 |
71,355 |
62,860 | |||||||||
CPFL Planalto (*) |
630 |
2,433 |
630 |
1,294 |
1,668 |
1,294 |
2,003 |
1,668 |
1,364 | |||||||||
CPFL Serviços |
1,480,835 |
173,828 |
50,143 |
44,816 |
(5,328) |
44,816 |
7,117 |
(5,328) |
(12,190) | |||||||||
CPFL Atende (*) |
13,991 |
24,683 |
13,991 |
15,798 |
4,412 |
15,798 |
17,373 |
4,412 |
5,857 | |||||||||
Nect (*) |
2,059 |
26,733 |
2,059 |
7,135 |
10,264 |
7,135 |
16,087 |
10,264 |
14,549 | |||||||||
CPFL Total (*) |
19,005 |
31,161 |
19,005 |
23,590 |
8,837 |
23,590 |
19,930 |
8,837 |
8,383 | |||||||||
CPFL Jaguariuna (*) |
3,156 |
2,596 |
3,156 |
2,489 |
(87) |
2,489 |
2,496 |
(87) |
(77) | |||||||||
CPFL Telecom |
55,420 |
60,910 |
55,420 |
(34,247) |
(19,278) |
(34,247) |
(33,969) |
(19,278) |
(10,279) | |||||||||
CPFL Centrais Geradoras (*) |
16,128 |
16,024 |
16,128 |
15,733 |
(684) |
15,733 |
19,972 |
(684) |
5,019 | |||||||||
CPFL ESCO |
48,164 |
100,305 |
48,164 |
60,478 |
4,670 |
60,478 |
66,038 |
4,670 |
27,573 | |||||||||
AUTHI (*) |
2,610 |
27,213 |
2,610 |
10,359 |
17,813 |
10,359 |
1,913 |
17,813 |
(1,689) | |||||||||
Subtotal - By subsidiary's equity |
5,857,221 |
6,144,668 |
825,078 |
697,293 | ||||||||||||||
Amortization of added value on assets |
- |
- |
(47,035) |
(86,523) | ||||||||||||||
Total |
5,857,221 |
6,144,668 |
778,043 |
610,769 | ||||||||||||||
Investment |
5,891,468 |
6,178,637 |
||||||||||||||||
Provision for equity interest losses |
(34,247) |
(33,969) |
||||||||||||||||
(*) number of quotas |
Fair value adjustments (value added) of net assets acquired in business combinations are classified under Investments in the parent company’s statement of income. The amortization of the fair value adjustments (value added) of net assets of R$ 47,035 (R$ 86,523 in the nine months ended in September 30 2015) is classified in the parent company’s statement of profit or loss in line item “equity in subsidiaries”, in conformity with ICPC 09 (R2).
The movements, in the parent company, in investments in subsidiaries, in the period are as follows:
Investment |
Investment as of December 31, 2015 |
Capital increase /payment of capital |
Equity in subsidiary (profit or loss) |
Equity in subsidiary (Other comprehensive income) |
Dividend and Interest on shareholders’ equity receivable |
Investment as of September 30, 2016 | ||||||
CPFL Paulista |
1,352,393 |
- |
235,118 |
(277,013) |
(283,656) |
1,026,842 | ||||||
CPFL Piratininga |
537,670 |
- |
112,604 |
(102,326) |
(140,404) |
407,545 | ||||||
CPFL Santa Cruz |
131,149 |
- |
17,209 |
- |
(13,700) |
134,658 | ||||||
CPFL Leste Paulista |
46,301 |
- |
6,485 |
- |
(4,180) |
48,606 | ||||||
CPFL Sul Paulista |
55,233 |
- |
5,846 |
- |
(4,794) |
56,285 | ||||||
CPFL Jaguari |
28,521 |
- |
6,422 |
- |
(6,254) |
28,689 | ||||||
CPFL Mococa |
29,205 |
- |
5,905 |
- |
(4,423) |
30,687 | ||||||
RGE |
1,580,807 |
- |
79,132 |
(16,936) |
(65,218) |
1,577,784 | ||||||
CPFL Geração |
2,169,922 |
220 |
259,217 |
(8,088) |
(142,544) |
2,278,726 | ||||||
CPFL Jaguari Geração |
42,729 |
- |
3,498 |
- |
(2,621) |
43,606 | ||||||
CPFL Brasil |
51,779 |
- |
71,355 |
- |
(46,786) |
76,348 | ||||||
CPFL Planalto |
2,003 |
- |
1,668 |
- |
(2,377) |
1,294 | ||||||
CPFL Serviços |
7,117 |
43,026 |
(5,328) |
- |
- |
44,816 | ||||||
CPFL Atende |
17,373 |
- |
4,412 |
- |
(5,987) |
15,798 | ||||||
Nect |
16,087 |
- |
10,264 |
- |
(19,216) |
7,135 | ||||||
CPFL Total |
19,930 |
- |
8,837 |
- |
(5,177) |
23,590 | ||||||
CPFL Jaguariuna |
2,496 |
80 |
(87) |
- |
- |
2,489 | ||||||
CPFL Telecom |
(33,969) |
19,000 |
(19,278) |
- |
- |
(34,247) | ||||||
CPFL Centrais Geradoras |
19,972 |
- |
(684) |
- |
(3,555) |
15,733 | ||||||
CPFL ESCO |
66,038 |
- |
4,670 |
- |
(10,230) |
60,478 | ||||||
AUTHI |
1,912 |
2,600 |
17,813 |
- |
(11,968) |
10,359 | ||||||
6,144,668 |
64,926 |
825,078 |
(404,363) |
(773,090) |
5,857,221 |
46
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
In the consolidated, the investment balances correspond to the interest in the joint ventures accounted for by the equity method:
Investment in joint ventures |
September 30, 2016 |
December 31, 2015 |
Nine months 2016 |
Nine months 2015 | ||||
Shareholders equity interest |
Equity in subsidiaries | |||||||
Baesa |
174,521 |
166,150 |
8,371 |
1,886 | ||||
Enercan |
557,222 |
473,148 |
84,074 |
43,753 | ||||
Chapecoense |
514,021 |
449,049 |
64,972 |
29,479 | ||||
EPASA |
183,133 |
147,485 |
43,962 |
50,719 | ||||
Fair value adjustments of assets, net |
11,365 |
11,799 |
(435) |
(852) | ||||
1,440,262 |
1,247,631 |
200,944 |
124,985 |
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 mainly to acquisitions of investments and is based on projections of future profits.
In the consolidated interim financial statements, these amounts are classified as Intangible Assets (note 14).
12.3 Dividends and interest on capital receivable
At September 30, 2016 and December, 31 2015, the Company has the following amounts receivable from the subsidiaries below, relating to dividends and interest on capital:
Parent company | |||||||||||
Dividends |
Interest on Shareholders´ Equity |
Total | |||||||||
Subsidiaries |
September 30, 2016 |
December 31, 2015 |
September 30, 2016 |
December 31, 2015 |
September 30, 2016 |
December 31, 2015 | |||||
CPFL Paulista |
163,210 |
612,585 |
- |
52,383 |
163,210 |
664,968 | |||||
CPFL Piratininga |
72,080 |
172,239 |
- |
27,084 |
72,080 |
199,323 | |||||
CPFL Santa Cruz |
8,805 |
19,527 |
4,160 |
7,517 |
12,965 |
27,044 | |||||
CPFL Leste Paulista |
2,454 |
3,220 |
1,466 |
2,102 |
3,921 |
5,322 | |||||
CPFL Sul Paulista |
8,641 |
3,848 |
1,986 |
1,986 |
10,627 |
5,834 | |||||
CPFL Jaguari |
6,115 |
1,152 |
- |
- |
6,115 |
1,152 | |||||
CPFL Mococa |
3,318 |
2,499 |
939 |
1,234 |
4,257 |
3,733 | |||||
RGE |
24,672 |
67,815 |
- |
64,073 |
24,672 |
131,888 | |||||
CPFL Geração |
246,077 |
103,532 |
- |
- |
246,077 |
103,532 | |||||
CPFL Centrais Geradoras |
- |
1,185 |
- |
- |
- |
1,185 | |||||
CPFL Jaguari Geração |
- |
1,667 |
- |
- |
- |
1,667 | |||||
CPFL Brasil |
86,020 |
41,176 |
1,650 |
1,601 |
87,671 |
42,777 | |||||
CPFL Planalto |
1,005 |
458 |
- |
- |
1,005 |
458 | |||||
CPFL Serviços |
- |
12,026 |
- |
- |
- |
12,026 | |||||
CPFL Atende |
1,953 |
- |
554 |
- |
2,507 |
- | |||||
Nect Serviços |
10,600 |
4,539 |
- |
- |
10,600 |
4,539 | |||||
CPFL Total |
4,930 |
5,589 |
- |
- |
4,930 |
5,589 | |||||
CPFL ESCO |
9,565 |
9,565 |
16,325 |
6,354 |
25,891 |
15,919 | |||||
AUTHI |
10,064 |
634 |
- |
- |
10,064 |
634 | |||||
659,510 |
1,063,256 |
27,081 |
164,334 |
686,592 |
1,227,590 |
At the consolidated financial statements, the balance of dividends and interest on capital receivable at September 30, 2016 is R$ 13,424 (R$ 91,392 at December 31, 2015) related to joint ventures.
47
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
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 | |||||
As of December 31, 2015 |
234,271 |
2,148,490 |
73,182 |
2,455,942 | ||||
Equity Interests and voting capital |
35.00% |
48.39% |
40.07% |
|||||
Net equity attributable to noncontrolling shareholders |
30,295 |
(53,616) |
2,449 |
(20,871) | ||||
Dividends |
- |
(16,129) |
- |
(16,129) | ||||
Other movements |
- |
247 |
(53) |
194 | ||||
As of September 30, 2016 |
264,566 |
2,078,992 |
75,578 |
2,419,136 | ||||
Equity Interests and voting capital |
35.00% |
48.39% |
40.07% |
12.4.2 Summarized financial information of subsidiaries that have interests of noncontrolling shareholders
Summarized financial information on subsidiaries that have interests of noncontrolling shareholders at September 30, 2016 and December 31, 2015 and in the nine months ended in September 30, 2016 and 2015 are as follows:
September 30, 2016 |
December 31, 2015 | |||||||||||
CERAN |
CPFL Renováveis |
Paulista Lajeado |
CERAN |
CPFL Renováveis |
Paulista Lajeado | |||||||
Current assets |
259,883 |
969,734 |
29,536 |
203,205 |
1,296,420 |
39,916 | ||||||
Cash and cash equivalents |
208,185 |
515,631 |
20,208 |
154,845 |
871,503 |
30,907 | ||||||
Noncurrent assets |
942,491 |
11,137,826 |
123,057 |
997,049 |
10,607,682 |
126,147 | ||||||
Current liabilities |
86,273 |
1,268,801 |
4,491 |
128,920 |
1,174,865 |
16,515 | ||||||
Borrowings and debentures |
55,432 |
835,928 |
34 |
62,279 |
854,042 |
392 | ||||||
Other financial liabilities |
14,798 |
68,431 |
254 |
39,068 |
75,716 |
6,496 | ||||||
Noncurrent liabilities |
360,196 |
6,668,085 |
35,272 |
401,988 |
6,425,440 |
40,908 | ||||||
Borrowings and debentures |
272,530 |
5,428,098 |
35,086 |
318,864 |
5,150,530 |
40,908 | ||||||
Other financial liabilities |
87,666 |
633 |
- |
83,124 |
633 |
- | ||||||
Equity |
755,904 |
4,170,674 |
112,830 |
669,346 |
4,303,797 |
108,639 | ||||||
Equity attributable to controlling shareholders |
755,904 |
4,052,784 |
112,830 |
669,346 |
4,176,063 |
108,639 | ||||||
Equity attributable to noncontrolling shareholders |
- |
117,890 |
- |
- |
127,734 |
- | ||||||
Nine months 2016 |
Nine months 2015 | |||||||||||
CERAN |
CPFL Renováveis |
Paulista Lajeado |
CERAN |
CPFL Renováveis |
Paulista Lajeado | |||||||
Net operating revenue |
223,603 |
1,144,731 |
22,840 |
218,502 |
1,061,929 |
23,516 | ||||||
Operating cost and expense |
(43,106) |
(421,107) |
(20,958) |
(76,234) |
(432,627) |
(22,832) | ||||||
Depreciation and amortization |
(33,995) |
(406,679) |
(2) |
(34,539) |
(397,162) |
(6) | ||||||
Interest income |
20,459 |
81,576 |
2,071 |
11,429 |
86,399 |
1,384 | ||||||
Interest expense |
(27,936) |
(435,558) |
(1,093) |
(30,282) |
(387,909) |
(861) | ||||||
Income tax expense |
(44,732) |
(39,837) |
254 |
(19,985) |
(27,257) |
(286) | ||||||
Profit (loss) |
86,558 |
(117,461) |
6,112 |
41,908 |
(131,360) |
578 | ||||||
Attributable to controlling shareholders |
86,558 |
(123,705) |
6,112 |
41,908 |
(132,651) |
578 | ||||||
Attributable to nocontrolling shareholders |
- |
6,244 |
- |
- |
1,291 |
- |
48
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
12.4.3 Joint ventures
Summarized financial information on joint ventures at September 30, 2016 and December 31, 2015 and in the nine months ended in September 30, 2016 and 2015 are as follows:
September 30, 2016 |
December 31, 2015 | |||||||||||||||
Enercan |
Baesa |
Chapecoense |
Epasa |
Enercan |
Baesa |
Chapecoense |
Epasa | |||||||||
Current assets |
344,217 |
51,727 |
361,688 |
155,187 |
292,133 |
105,198 |
356,493 |
305,371 | ||||||||
Cash and cash equivalents |
227,653 |
15,809 |
197,949 |
29,811 |
112,387 |
75,097 |
239,192 |
120,307 | ||||||||
Noncurrent assets |
1,188,449 |
1,134,658 |
3,039,601 |
574,260 |
1,253,002 |
1,174,604 |
3,079,957 |
600,413 | ||||||||
Current liabilities |
139,917 |
115,765 |
333,166 |
126,969 |
264,721 |
188,077 |
447,142 |
336,794 | ||||||||
Borrowings and debentures |
86,950 |
87,627 |
137,079 |
35,451 |
86,724 |
111,422 |
136,322 |
57,269 | ||||||||
Other financial liabilities |
8,356 |
23,262 |
76,862 |
28,450 |
81,121 |
70,793 |
115,360 |
122,921 | ||||||||
Noncurrent liabilities |
249,098 |
372,701 |
2,060,238 |
259,141 |
309,317 |
427,284 |
2,108,820 |
292,490 | ||||||||
Borrowings and debentures |
173,988 |
83,764 |
1,320,608 |
227,186 |
240,336 |
155,826 |
1,404,553 |
251,913 | ||||||||
Other financial liabilities |
26,302 |
276,925 |
737,079 |
28,204 |
24,759 |
260,042 |
703,556 |
40,381 | ||||||||
Equity |
1,143,651 |
697,920 |
1,007,885 |
343,337 |
971,097 |
664,442 |
880,488 |
276,500 | ||||||||
Nine months 2016 |
Nine months 2015 | |||||||||||||||
Enercan |
Baesa |
Chapecoense |
Epasa |
Enercan |
Baesa |
Chapecoense |
Epasa | |||||||||
Net operating revenue |
419,061 |
181,441 |
579,724 |
367,658 |
383,750 |
344,816 |
535,632 |
709,604 | ||||||||
Operating cost and expense |
(103,861) |
(50,212) |
(118,546) |
(220,713) |
(171,018) |
(211,212) |
(188,203) |
(542,485) | ||||||||
Depreciation and amortization |
(40,349) |
(38,776) |
(96,030) |
(24,554) |
(40,258) |
(41,501) |
(98,841) |
(24,288) | ||||||||
Interest income |
22,477 |
7,695 |
24,695 |
8,460 |
10,526 |
4,965 |
17,955 |
8,011 | ||||||||
Interest expense |
(27,360) |
(16,233) |
(94,599) |
(17,815) |
(45,025) |
(17,328) |
(99,596) |
(22,846) | ||||||||
Income tax expense |
(88,951) |
(17,387) |
(64,447) |
(21,081) |
(45,561) |
(3,839) |
(30,004) |
(22,666) | ||||||||
Profit (loss) |
172,554 |
33,478 |
127,396 |
82,418 |
89,799 |
7,541 |
57,802 |
95,056 | ||||||||
Equity Interests and voting capital |
48.72% |
25.01% |
51.00% |
53.34% |
48.72% |
25.01% |
51.00% |
53.34% |
Although 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 ENERCAN, BAESA and Chapecoense establish restrictions on the payment of dividends to subsidiary CPFL Geração above the mandatory minimum dividend of 25% without the prior consent of the BNDES.
12.4.4 Jointly controlled 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 Goiás State. The concession and operation of the hydropower plant belong to Furnas Centrais Elétricas S.A. In order to maintain these assets operating jointly with Furnas (joint 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 measures not audited by the independent auditors).
12.5Advance for future capital increase
At September 30, 2016 the balances of advance for future capital increase mainly refer to advances to the subsidiaries CPFL Serviços (R$ 46,000) and CPFL Telecom (R$ 25,000), approved in June 2016 and September 2015 respectively.
49
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - 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 | ||||||||
As of December 31, 2015 |
176,807 |
1,376,246 |
1,075,982 |
5,824,089 |
36,230 |
9,696 |
674,166 |
9,173,217 | |||||||
Historic cost |
198,141 |
1,965,641 |
1,516,228 |
7,878,838 |
52,947 |
22,323 |
674,166 |
12,308,285 | |||||||
Accumulated depreciation |
(21,334) |
(589,395) |
(440,246) |
(2,054,749) |
(16,717) |
(12,627) |
- |
(3,135,068) | |||||||
Additions |
- |
67 |
77 |
77 |
- |
- |
888,577 |
888,797 | |||||||
Disposals |
- |
- |
- |
(4,218) |
(1,220) |
(214) |
(46) |
(5,698) | |||||||
Transfers |
3,851 |
50,808 |
161,023 |
626,835 |
18,286 |
434 |
(861,236) |
- | |||||||
Reclassification - cost |
(58) |
(3,042) |
(24,770) |
35,347 |
(12) |
100 |
- |
7,565 | |||||||
Transfers from/to other assets - cost |
- |
3 |
1 |
(2,355) |
(167) |
(516) |
(10,947) |
(13,983) | |||||||
Depreciation |
(5,589) |
(55,974) |
(39,117) |
(275,970) |
(6,100) |
(1,295) |
- |
(384,045) | |||||||
Write-off of depreciation |
- |
- |
- |
3,224 |
480 |
88 |
- |
3,792 | |||||||
Reclassification - depreciation |
(1,212) |
107 |
(5,380) |
(1,100) |
7 |
12 |
- |
(7,565) | |||||||
Transfers from/to other assets - depreciation |
- |
3 |
(46) |
1,186 |
149 |
96 |
- |
1,389 | |||||||
As of September 30, 2016 |
173,798 |
1,368,217 |
1,167,770 |
6,207,115 |
47,653 |
8,400 |
690,511 |
9,663,465 | |||||||
Historic cost |
201,934 |
2,013,476 |
1,652,557 |
8,515,702 |
69,834 |
22,125 |
690,511 |
13,166,139 | |||||||
Accumulated depreciation |
(28,136) |
(645,259) |
(484,787) |
(2,308,587) |
(22,181) |
(13,725) |
- |
(3,502,674) | |||||||
Average depreciation rate |
3.86% |
3.72% |
3.19% |
4.35% |
12.32% |
9.89% |
In accordance with IAS 23 / CPC 20 (R1), the interest on borrowings taken by subsidiaries to finance the works is capitalized during the construction phase. In the consolidated, in the nine months ended in September 30, 2016, R$ 43,568 was capitalized at a rate of 11.53% (R$ 20,416 in the nine months ended in September 30, 2015 at a rate of 11.05%) (Note 29).
The amounts stated under "Reclassification - cost" and “Reclassification – depreciation” mainly relate to the subsidiary CPFL Renováveis and refer to transfers for amendments of fixed asset groups, they do not alter the amount of depreciation expense registered in the period, as there was no change to their useful lives.
In the consolidated, depreciation expenses are recognized in the statement of profit or loss in line item “depreciation and amortization” (note 28).
50
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 14 ) INTANGIBLE ASSETS
Consolidated | |||||||||||||
Goodwill |
Concession right |
Other intangible assets |
Total | ||||||||||
Acquired in business combinations |
Distribution infrastructure - operational |
Distribution infrastructure - in progress |
Public utilities |
||||||||||
As of December 31, 2015 |
6,115 |
4,355,546 |
4,249,182 |
499,627 |
28,743 |
71,125 |
9,210,338 | ||||||
Historical cost |
6,152 |
7,441,902 |
10,348,857 |
499,627 |
35,840 |
192,626 |
18,525,004 | ||||||
Accumulated amortization |
(37) |
(3,086,356) |
(6,099,675) |
- |
(7,097) |
(121,500) |
(9,314,665) | ||||||
Additions |
- |
- |
- |
718,062 |
- |
5,259 |
723,321 | ||||||
Amortization |
- |
(186,272) |
(357,851) |
- |
(1,065) |
(8,890) |
(554,078) | ||||||
Transfer - intangible assets |
- |
- |
361,894 |
(361,894) |
- |
- |
- | ||||||
Transfer - financial asset |
- |
- |
(2,262) |
(388,484) |
- |
- |
(390,747) | ||||||
Disposal and transfer - other assets |
- |
- |
(27,046) |
- |
- |
1,225 |
(25,821) | ||||||
As of September 30, 2016 |
6,115 |
4,169,274 |
4,223,917 |
467,310 |
27,678 |
68,719 |
8,963,014 | ||||||
Historical cost |
6,152 |
7,236,860 |
10,574,363 |
467,310 |
35,840 |
195,720 |
18,516,245 | ||||||
Accumulated amortization |
(37) |
(3,067,586) |
(6,350,446) |
- |
(8,162) |
(127,000) |
(9,553,231) |
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 28).
In accordance with IAS 23 / CPC 20 (R1), the interest on borrowings taken by subsidiaries is capitalized for qualifying intangible assets. In the nine months ended in September 30 2016 R$ 8,864 was capitalized
(R$ 8,373 in the nine months ended in September 30 2015) at a rate of 7.59% p.a. (7.50% p.a. in the nine months ended in September 30 2015).
51
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
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:
|
Consolidated | ||||||||||
|
September 30, 2016 |
December 31, 2015 |
Annual amortization rate | ||||||||
|
Historic cost |
Accumulated amortization |
Net value |
Net value |
2016 |
2015 | |||||
Intangible asset - acquired in business combinations |
|||||||||||
Intangible asset acquired, not merged |
|||||||||||
Parent Company |
|||||||||||
CPFL Paulista |
304,861 |
(194,522) |
110,340 |
117,829 |
3.28% |
4.78% | |||||
CPFL Piratininga |
39,065 |
(23,422) |
15,643 |
16,614 |
3.31% |
4.50% | |||||
RGE |
3,150 |
(1,660) |
1,490 |
1,590 |
4.24% |
5.51% | |||||
CPFL Geração |
54,555 |
(33,182) |
21,373 |
22,757 |
3.38% |
5.04% | |||||
CPFL Jaguari Geração |
7,896 |
(3,515) |
4,381 |
4,584 |
3.41% |
6.36% | |||||
409,527 |
(256,300) |
153,227 |
163,373 |
||||||||
Subsidiares |
|||||||||||
CPFL Renováveis |
3,764,809 |
(683,604) |
3,081,205 |
3,195,215 |
4.02% |
4.35% | |||||
RGE |
618 |
(135) |
483 |
516 |
|||||||
3,765,427 |
(683,738) |
3,081,689 |
3,195,731 |
||||||||
Subtotal |
4,174,954 |
(940,038) |
3,234,915 |
3,359,104 |
|||||||
Intangible asset acquired and merged - Deductible |
|||||||||||
Subsidiares |
|||||||||||
RGE |
1,120,266 |
(856,435) |
263,831 |
281,551 |
2.11% |
1.79% | |||||
CPFL Geração |
426,450 |
(311,005) |
115,444 |
122,919 |
2.34% |
3.80% | |||||
Subtotal |
1,546,716 |
(1,167,441) |
379,275 |
404,470 |
|||||||
Intangible asset acquired and merged - Reassessed |
|||||||||||
Parent Company |
|||||||||||
CPFL Paulista |
1,074,026 |
(714,410) |
359,616 |
383,770 |
3.00% |
4.34% | |||||
CPFL Piratininga |
115,762 |
(69,407) |
46,354 |
49,232 |
3.31% |
4.50% | |||||
RGE |
310,128 |
(168,488) |
141,640 |
151,153 |
4.09% |
5.32% | |||||
CPFL Jaguari Geração |
15,275 |
(7,802) |
7,473 |
7,818 |
3.01% |
5.61% | |||||
Subtotal |
1,515,190 |
(960,107) |
555,083 |
591,972 |
|||||||
Total |
7,236,860 |
(3,067,586) |
4,169,274 |
4,355,546 |
As mentioned in Note 3, from January 1, 2016, in line with the changes to IAS 16/CPC 27 and IAS 38/CPC 04 (R1), the Company will amortize intangible assets acquired in business combinations prospectively on a straight-line basis over the remaining period of the concessions.
52
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 15 ) TRADE PAYABLES
Consolidated | |||
September 30, 2016 |
December 31, 2015 | ||
Current |
|||
System service charges |
51,362 |
203,961 | |
Energy purchased |
1,396,022 |
2,402,823 | |
Electricity network usage charges |
98,517 |
106,940 | |
Materials and services |
270,010 |
331,809 | |
Free energy |
127,747 |
115,676 | |
Total |
1,943,658 |
3,161,210 | |
Noncurrent |
|||
Materials and services |
633 |
633 |
( 16 ) INTEREST ON DEBTS AND BORROWINGS
Consolidated | ||||||||||||||||
September 30, 2016 |
December 31, 2015 | |||||||||||||||
Interest - current and noncurrent |
Principal |
|
Total |
Interest - current and noncurrent |
Principal |
|
Total | |||||||||
Current |
Noncurrent |
Current |
Noncurrent |
|||||||||||||
Measured at cost |
||||||||||||||||
Local currency |
||||||||||||||||
Investment |
18,062 |
741,856 |
4,781,410 |
5,541,328 |
17,775 |
693,058 |
4,970,715 |
5,681,549 | ||||||||
Rental assets |
27 |
938 |
4,240 |
5,205 |
17 |
687 |
3,434 |
4,138 | ||||||||
Financial Institutions |
193,467 |
246,523 |
1,529,974 |
1,969,964 |
179,656 |
382,411 |
1,350,746 |
1,912,812 | ||||||||
Other |
815 |
21,433 |
7,840 |
30,088 |
764 |
134,960 |
10,002 |
145,726 | ||||||||
Total at cost |
212,372 |
1,010,750 |
6,323,463 |
7,546,585 |
198,212 |
1,211,115 |
6,334,897 |
7,744,225 | ||||||||
Measured at fair value |
||||||||||||||||
Foreign currency |
||||||||||||||||
Financial Institutions |
15,536 |
427,971 |
4,898,860 |
5,342,367 |
40,714 |
1,651,199 |
5,560,517 |
7,252,430 | ||||||||
Mark to market |
- |
(1,250) |
(82,186) |
(83,436) |
- |
(29,269) |
(282,980) |
(312,249) | ||||||||
Total at fair value |
15,536 |
426,721 |
4,816,674 |
5,258,931 |
40,714 |
1,621,930 |
5,277,536 |
6,940,180 | ||||||||
Borrowing costs (*) |
- |
(2,873) |
(32,514) |
(35,387) |
- |
(1,391) |
(20,227) |
(21,618) | ||||||||
Total |
227,908 |
1,434,598 |
11,107,624 |
12,770,130 |
238,926 |
2,831,654 |
11,592,206 |
14,662,787 |
(*) In accordance with IAS 39 / CPC 08, this refers to the fundraising costs attributable to issuance of the respective debts
53
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated |
||||||||||
Measured at amortized cost |
September 30, 2016 |
December 31, 2015 |
Annual interest |
Amortization |
Collateral | |||||
Local currency |
||||||||||
Investment |
||||||||||
CPFL Paulista |
||||||||||
FINEM V |
45,461 |
70,293 |
TJLP + 2.12% to 3.3% (c) |
72 monthly installments from February 2012 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
4,073 |
5,384 |
Fixed rate 8% (c) |
90 monthly installments from August 2011 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
32,718 |
38,386 |
Fixed rate 5.5% (b) |
96 monthly installments from February 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
161,865 |
197,145 |
TJLP + 2.06% to 3.08% (e) (f) |
72 monthly installments from January 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
9,282 |
10,412 |
Fixed rate 2.5% (a) |
114 monthly installments from June 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
170,297 |
191,022 |
Fixed rate 2.5% (a) |
96 monthly installments from December 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
59,781 |
63,777 |
Fixed rate 6% (b) |
96 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
74,512 |
65,304 |
SELIC + 2.62% to 2.66% (h) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
138,410 |
130,774 |
TJLP + 2.12% to 2.66% (c) (d) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINAME |
27,465 |
33,808 |
Fixed rate 4.5% |
96 monthly installments from January 2012 |
CPFL Energia guarantee | |||||
CPFL Piratininga |
|
|
||||||||
FINEM IV |
24,485 |
37,859 |
TJLP + 2.12% to 3.3% (c) |
72 monthly installments from February 2012 |
CPFL Energia guarantee and receivables | |||||
FINEM IV |
1,313 |
1,736 |
Fixed rate 8% (c) |
90 monthly installments from August 2011 |
CPFL Energia guarantee and receivables | |||||
FINEM IV |
17,014 |
19,962 |
Fixed rate 5.5% (b) |
96 monthly installments from February 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
47,309 |
57,621 |
TJLP + 2.06% to 3.08% (e) (f) |
72 monthly installments from January 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
2,438 |
2,735 |
Fixed rate 2.5% (a) |
114 monthly installments from June 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
42,379 |
47,536 |
Fixed rate 2.5% (a) |
96 monthly installments from December 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
42,230 |
39,605 |
SELIC + 2.62% to 2.66% (h) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
68,649 |
69,054 |
TJLP + 2.12% to 2.66% (c) (d) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
29,165 |
30,463 |
Fixed rate 6% (b) |
96 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINAME |
13,024 |
16,031 |
Fixed rate 4.5% |
96 monthly installments from January 2012 |
CPFL Energia guarantee | |||||
RGE |
|
|
||||||||
FINEM V |
27,518 |
42,549 |
TJLP + 2.12% to 3.3% (c) |
72 monthly installments from February 2012 |
CPFL Energia guarantee and receivables | |||||
FINEM V |
12,551 |
14,725 |
Fixed rate 5.5% (b) |
96 monthly installments from February 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
86,474 |
105,322 |
TJLP + 2.06% to 3.08% (e) (f) |
72 monthly installments from January 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
982 |
1,102 |
Fixed rate 2.5% (a) |
114 monthly installments from June 2013 |
CPFL Energia guarantee and receivables | |||||
FINEM VI |
62,620 |
70,240 |
Fixed rate 2.5% (a) |
96 monthly installments from December 2014 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
40,795 |
43,522 |
Fixed rate 6% (b) |
96 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
66,217 |
59,348 |
SELIC + 2.62% to 2.66% (h) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINEM VII |
84,946 |
76,728 |
TJLP + 2.12% to 2.66% (d) |
72 monthly installments from April 2016 |
CPFL Energia guarantee and receivables | |||||
FINAME |
6,535 |
8,045 |
Fixed rate 4.5% |
96 monthly installments from January 2012 |
CPFL Energia guarantee | |||||
FINAME |
183 |
227 |
Fixed rate 10.0% |
90 monthly installments from May 2012 |
Liens on assets | |||||
FINAME |
613 |
715 |
Fixed rate 10.0% |
66 monthly installments from October 2015 |
Liens on assets | |||||
CPFL Santa Cruz |
|
|
||||||||
FINEM |
9,395 |
10,306 |
Fixed rate 6% |
111 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
3,468 |
3,663 |
SELIC + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
6,394 |
7,382 |
TJLP + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
CPFL Leste Paulista |
|
|
||||||||
FINEM |
3,510 |
3,850 |
Fixed rate 6% |
111 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
1,271 |
1,343 |
SELIC + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
2,346 |
2,709 |
TJLP + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
CPFL Sul Paulista |
|
|
||||||||
FINEM |
2,493 |
2,734 |
Fixed rate 6% |
111 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
1,776 |
1,876 |
SELIC + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
3,294 |
3,803 |
TJLP + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
CPFL Jaguari |
|
|
||||||||
Bank credit note - Santander |
1,526 |
1,710 |
TJLP + 3.1% |
96 monthly installments from June 2014 |
CPFL Energia guarantee | |||||
Bank credit note - Santander |
589 |
808 |
UMBNDES + 2.1% |
96 monthly installments from June 2014 |
CPFL Energia guarantee | |||||
FINEM |
2,503 |
2,745 |
Fixed rate 6% |
111 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
1,320 |
1,394 |
SELIC + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
FINEM |
2,448 |
2,826 |
TJLP + 2.19% |
72 monthly installments from April 2015 |
CPFL Energia guarantee | |||||
CPFL Mococa |
|
|
||||||||
Bank credit note - Santander |
1,963 |
2,200 |
TJLP + 3.1% |
96 monthly installments from June 2014 |
CPFL Energia guarantee | |||||
Bank credit note - Santander |
758 |
1,039 |
UMBNDES + 2.1% |
96 monthly installments from June 2014 |
CPFL Energia guarantee | |||||
Bank credit note - Santander |
1,442 |
1,932 |
UMBNDES +1.99% |
96 monthly installments from October 2015 |
CPFL Energia guarantee | |||||
Bank credit note - Santander |
4,216 |
4,619 |
TJLP + 2.99% (f) |
96 monthly installments from October 2015 |
CPFL Energia guarantee | |||||
CPFL Serviços |
|
|
||||||||
FINAME |
1,350 |
1,509 |
Fixed rate 2.5% to 5.5% |
96 monthly installments from August 2014 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
327 |
357 |
Fixed rate 6% |
72 monthly installments from April 2016 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
717 |
864 |
Fixed rate 7.7% to 10% |
90 monthly installments from November 2012 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
11,730 |
13,049 |
Fixed rate 2.5% to 5.5% |
114 monthly installments from February 2013 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
50 |
60 |
TJLP + 4.2% |
90 monthly installments from November 2012 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
2,351 |
2,659 |
Fixed rate 6% |
90 monthly installments from October 2014 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
105 |
108 |
Fixed rate 6% |
96 monthly installments from July 2016 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
5,949 |
6,496 |
Fixed rate 6% |
114 monthly installments from June 2015 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
823 |
1,002 |
TJLP + 2.2% to 3.2% (c) |
56 monthly installments from July 2015 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
4,071 |
4,006 |
Fixed rate 9.5% to 10% (c) |
66 monthly installments from October 2015 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
1,666 |
- |
Fixed rate 6% to 10% (e) |
66 monthly installments from April 2016 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
4,860 |
- |
TJLP + 3.5% (e) |
48 monthly installments from july 2017 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
1,117 |
- |
SELIC + 3.9% (k) |
48 monthly installments from july 2017 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
976 |
- |
SELIC + 3.86% (k) |
48 monthly installments from july 2017 |
CPFL Energia guarantee and liens on equipment |
54
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
CERAN |
|
|
||||||||
BNDES |
277,365 |
312,150 |
TJLP + 3.69% to 5% |
168 monthly installments from December 2005 |
Pledge of shares, credit and concession rights, revenues and CPFL Energia guarantee | |||||
BNDES |
50,597 |
68,993 |
UMBNDES + 5% (1) |
168 monthly installments from February 2006 |
Pledge of shares, credit and concession rights, revenues and CPFL Energia guarantee | |||||
CPFL Transmissão |
|
|
||||||||
FINAME |
17,518 |
19,466 |
Fixed rate 3.0% |
96 monthly installments from July 2015 |
CPFL Energia guarantee | |||||
CPFL Telecom |
|
|
||||||||
FINAME |
7,611 |
7,610 |
Fixed rate 6.0% (b) |
60 monthly installments from December 2016 |
CPFL Energia guarantee | |||||
FINEM |
7,751 |
7,018 |
SELIC + 3.12% (h) |
60 monthly installments from December 2016 |
CPFL Energia guarantee | |||||
FINEM |
21,781 |
21,544 |
TJLP + 2.12% to 3.12% (c) |
60 monthly installments from December 2016 |
CPFL Energia guarantee | |||||
FINEM |
476 |
- |
TJLP (l) |
60 monthly installments from December 2016 |
CPFL Energia guarantee | |||||
CPFL Renováveis |
|
|
||||||||
FINEM I |
269,300 |
290,445 |
TJLP + 1.95% |
168 monthly installments from October 2009 |
PCH Holding a joint and several debtor, letters of guarantee | |||||
FINEM II |
22,988 |
25,308 |
TJLP + 1.90%. |
144 monthly installments from June 2011 |
CPFL Energia guarantee, liens on assets and assignment of credit rights | |||||
FINEM III |
504,055 |
528,528 |
TJLP + 1.72% |
192 monthly installments from May 2013 |
CPFL Energia guarantee, pledge of shares, liens on assets, assignment of credit rights | |||||
FINEM V |
82,949 |
90,678 |
TJLP + 2.8% to 3.4% |
143 monthly installments from December 2011 |
PCH Holding 2 and CPFL Renováveis as joint and several debtors. | |||||
FINEM VI |
75,914 |
79,457 |
TJLP + 2.05% |
192 monthly installments from October 2013 |
Pledge of CPFL Renováveis shares, assignment of receivables | |||||
FINEM VII |
143,060 |
156,737 |
TJLP + 1.92 % |
156 monthly installments from October 2010 |
Pledge of shares, assignment of rights, liens on machinery and equipment | |||||
FINEM IX |
26,985 |
32,289 |
TJLP + 2.15% |
120 monthly installments from May 2010 |
Pledge of shares of subsidiary and liens on machinery and equipment | |||||
FINEM X |
305 |
528 |
TJLP |
84 monthly installments from October 2010 |
Pledge of shares, assignment of rights, liens on machinery and equipment | |||||
FINEM XI |
108,176 |
115,676 |
TJLP + 1.87% to 1.9% |
168 monthly installments from January 2012 |
CPFL Energia guarantee, pledge of shares, liens on assets, assignment of credit rights | |||||
FINEM XII |
321,857 |
335,894 |
TJLP + 2.18% |
192 monthly installments from July 2014 |
CPFL Energia guarantee, liens on assets, joint assignment of credit rights, pledge of shares | |||||
FINEM XIII |
322,792 |
296,891 |
TJLP + 2.02% to 2.18% |
192 monthly installments from November 2014 |
Pledge of shares and machinery and equipment of SPE , assignment of rights | |||||
FINEM XIV |
- |
11,599 |
TJLP + 3.50% |
120 monthly installments from June 2007 |
Liens on machinery and equipment , assignment of receivables, pledge of grantor rights - ANEEL, pledge of shares | |||||
FINEM XV |
28,290 |
31,227 |
TJLP + 3.44% |
139 monthly installments from September 2011 |
Assignment of receivables, pledge of grantor rights - ANEEL, pledge of shares | |||||
FINEM XVI |
6,938 |
8,500 |
Fixed rate 5.50% |
101 monthly installments from September 2011 |
Assignment of receivables, pledge of grantor rights - ANEEL, pledge of shares | |||||
FINEM XVII |
468,000 |
490,786 |
TJLP + 2.18% |
192 monthly installments from January 2013 |
Liens on machinery and equipment, assignment of receivables, pledge of grantor rights - ANEEL, pledge of shares and reserve account | |||||
FINEM XVIII |
14,913 |
18,481 |
Fixed rate 4.5% |
102 monthly installments from June 2011 |
CPFL Energia guarantee, liens on assets , assignment of credit rights | |||||
FINEM XIX |
30,013 |
31,381 |
TJLP + 2.02% |
192 monthly installments from January 2014 |
CPFL Energia guarantee, liens on assets, joint assignment of credit rights, pledge of shares | |||||
FINEM XX |
46,507 |
52,091 |
Fixed rate 2.5% |
108 monthly installments from January 2014 |
Pledge of CPFL Renováveis shares, | |||||
FINEM XXI |
40,900 |
42,765 |
TJLP + 2.02% |
192 monthly installments from January 2014 |
CPFL Energia guarantee, liens on assets, joint assignment of credit rights, pledge of shares | |||||
FINEM XXII |
40,915 |
45,828 |
Fixed rate 2.5% |
108 monthly installments from January 2014 |
Pledge of CPFL Renováveis shares, | |||||
FINEM XXIII |
1,873 |
2,305 |
Fixed rate 4.5% |
102 monthly installments from June 2011 |
CPFL Energia guarantee, liens on assets , assignment of credit rights | |||||
FINEM XXIV |
116,300 |
136,528 |
Fixed rate 5.5% |
108 monthly installments from January 2012 |
CPFL Energia guarantee, liens on assets, joint assignment of credit rights | |||||
FINEM XXV |
81,799 |
79,010 |
TJLP + 2.18% |
192 monthly installments from June 2015 |
Pledge of shares and grantor rights, liens on assets and assignment of credit rights | |||||
FINEM XXVI |
462,198 |
270,768 |
TJLP + 2.75% |
192 monthly installments from July 2017 |
Pledge of shares and grantor rights, liens on assets and assignment of credit rights | |||||
FINEM XXVII |
70,657 |
- |
TJLP + 2,02% |
162 monthly installments from November 2016 |
Pledge of shares of the intervening parties, assignment of credit rights, pledge of incidental rights authorized by ANEEL and SPE Reserve Account | |||||
FINAME IV |
2,974 |
3,327 |
Fixed rate 2.5% |
96 monthly installments from February 2015 |
Pledge of CPFL Renováveis shares, | |||||
FINEP I |
1,520 |
1,890 |
Fixed rate 3.5% |
61 monthly installments from October 2014 |
Bank guarantee | |||||
FINEP II |
10,444 |
10,383 |
TJLP - 1.00% |
85 monthly installments from June 2017 |
Guarantee | |||||
FINEP III |
5,517 |
6,374 |
TJLP + 3.00% |
73 monthly installments from July 2015 |
Guarantee | |||||
BNB I |
102,300 |
108,835 |
Fixed rate 9.5% to 10% |
168 monthly installments from January 2009 |
Liens | |||||
BNB II |
160,056 |
165,324 |
Fixed rate 10% (J) |
222 monthly installments from May 2010 |
CPFL Energia guarantee | |||||
BNB III |
29,474 |
30,837 |
Fixed rate 9.5% |
228 monthly installments from July 2009 |
Guarantee, liens on assets, assignment of credit rights | |||||
NIB |
70,154 |
72,739 |
IGPM + 8.63% |
50 quarterly installments from June 2011 |
No guarantee | |||||
Banco do Brasil |
- |
31,014 |
Fixed rate 10.00% |
132 monthly installment from June 2010 |
Shareholders support, pledge of shares and grantor rights, assignment of receivables, performance bond, guarantee and civil liability | |||||
CPFL Brasil |
|
|
||||||||
FINEP |
- |
1,864 |
Fixed rate 5% |
81 monthly installments from August 2011 |
Receivables | |||||
Purchase of assets |
|
|
||||||||
CPFL ESCO |
|
|
||||||||
FINAME |
3,082 |
3,544 |
Fixed rate 4.5% to 8.7% |
96 monthly installments from March 2012 |
CPFL Energia guarantee | |||||
FINAME |
104 |
117 |
Fixed rate 6% |
72 monthly installments from October 2016 |
CPFL Energia guarantee | |||||
FINAME |
249 |
261 |
TJLP + 2.70% |
48 monthly installments from October 2016 |
CPFL Energia guarantee | |||||
FINAME |
227 |
216 |
SELIC + 2.70% |
48 monthly installments from October 2016 |
CPFL Energia guarantee | |||||
FINAME |
125 |
- |
Fixed rate 9.5% |
48 monthly installments from October 2016 |
CPFL Energia guarantee | |||||
FINAME |
679 |
- |
Fixed rate 9.5% (e) |
48 monthly installments from February 2017 |
CPFL Energia guarantee and liens on equipment | |||||
FINAME |
738 |
- |
TJLP + 3.50% (e) |
48 monthly installments from August 2017 |
CPFL Energia guarantee and liens on equipment | |||||
Financial institutions |
||||||||||
CPFL Energia |
||||||||||
Santander - Working capital |
- |
331,343 |
86.40% of CDI |
1 installment in January 2016 |
No guarantee | |||||
CPFL Paulista |
||||||||||
Banco do Brasil - Working capital |
367,882 |
331,549 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee | |||||
CPFL Piratininga |
||||||||||
Banco do Brasil - Working capital |
64,747 |
58,353 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee | |||||
CPFL Santa Cruz |
||||||||||
Banco do Brasil - Working capital |
48,560 |
43,764 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
7,540 |
7,637 |
CDI + 0.27% (f) |
12 semiannual installments from June 2015 |
CPFL Energia guarantee | |||||
CPFL Leste Paulista |
||||||||||
Banco IBM - Working capital |
5,958 |
6,587 |
100.0% of CDI |
14 semiannual installments from December 2012 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
23,179 |
23,790 |
CDI + 0.1% |
12 semiannual installments from October 2014 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
16,219 |
17,268 |
CDI + 0.27% |
12 semiannual installments from March 2015 |
CPFL Energia guarantee | |||||
Banco IBM - Working capital |
6,746 |
8,052 |
CDI + 1.33 (f) |
12 semiannual installments from June 2015 |
CPFL Energia guarantee |
55
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
CPFL Sul Paulista |
|||||
Banco do Brasil - Working capital |
30,902 |
27,850 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee |
Banco IBM - Working capital |
8,038 |
8,914 |
CDI + 0.27% to 1.33 (f) |
12 semiannual installments from June 2015 |
CPFL Energia guarantee |
Banco IBM - Working capital |
6,545 |
- |
CDI + 1.27% (g) |
semiannual installments from February 2017 |
CPFL Energia guarantee |
CPFL Jaguari |
|||||
Banco do Brasil - Working capital |
4,267 |
3,846 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee |
Banco IBM - Working capital |
12,458 |
13,266 |
100.0% of CDI |
14 semiannual installments from December 2012 |
CPFL Energia guarantee |
Banco IBM - Working capital |
12,495 |
12,825 |
CDI + 0.1% |
12 semiannual installments from October 2014 |
CPFL Energia guarantee |
CPFL Mococa |
|||||
Banco do Brasil - Working capital |
27,959 |
25,198 |
104.90% of CDI (f) |
2 annual installments from July 2017 |
CPFL Energia guarantee |
Banco IBM - Working capital |
4,042 |
4,305 |
100.0% of CDI |
14 semiannual installments from December 2012 |
CPFL Energia guarantee |
Banco IBM - Working capital |
12,860 |
14,663 |
CDI + 0.27% |
12 semiannual installments from March 2015 |
CPFL Energia guarantee |
CPFL Serviços |
|||||
Banco IBM - Working capital |
4,482 |
5,111 |
CDI + 0.10% |
11 semiannual installments from June 2013 |
CPFL Energia guarantee |
CPFL Geração |
|||||
Banco do Brasil - Working capital |
619,296 |
642,124 |
109.5% of CDI |
1 installment in March 2019 |
CPFL Energia guarantee |
CPFL Renováveis |
|||||
HSBC |
259,460 |
290,679 |
CDI + 0.5% (i) |
8 annual installment from June 2013 |
Pledge of shares |
Safra |
201,627 |
- |
105% of CDI |
14 installment from August 2016 |
Redeemable preferred shares structure |
Banking credit notes -BCN- Banco BBM |
46,548 |
- |
CDI + 3.30% |
1 installment in January 2017 |
No guarantee |
Banking credit notes -BCN- Banco ABC |
46,171 |
- |
CDI + 3.80% |
1 installment in December 2017 |
No guarantee |
Banco ABC / promissory notes |
101,558 |
- |
CDI + 3.80% |
Semiannual installments from February 2017 |
No guarantee |
CPFL Telecom |
|||||
Banco IBM - Working capital |
30,425 |
35,689 |
CDI + 0.18% |
12 semiannual installments from August 2014 |
CPFL Energia guarantee |
Others |
|||||
Eletrobrás |
|||||
CPFL Paulista |
3,036 |
3,931 |
RGR + 6% to 6.5% |
monthly installments from August 2006 |
Receivables and promissory notes |
CPFL Piratininga |
- |
88 |
RGR + 6% |
monthly installments from August 2006 |
Receivables and promissory notes |
RGE |
6,131 |
7,658 |
RGR + 6% |
monthly installments from August 2006 |
Receivables and promissory notes |
CPFL Santa Cruz |
600 |
1,029 |
RGR + 6% |
monthly installments from January 2007 |
Receivables and promissory notes |
CPFL Leste Paulista |
372 |
532 |
RGR + 6% |
monthly installments from February 2008 |
Receivables and promissory notes |
CPFL Sul Paulista |
345 |
544 |
RGR + 6% |
monthly installments from August 2007 |
Receivables and promissory notes |
CPFL Jaguari |
11 |
24 |
RGR + 6% |
monthly installments from June 2007 |
Receivables and promissory notes |
CPFL Mococa |
130 |
170 |
RGR + 6% |
monthly installments from January 2008 |
Receivables and promissory notes |
Others |
19,463 |
131,751 |
|||
Subtotal local currency - Cost |
7,546,585 |
7,744,225 |
|||
Foreign Currency |
|||||
Measured at fair value |
|||||
Financial Institutions |
|||||
CPFL Energia |
|||||
Santander |
- |
293,660 |
US$ + 1.547% (3) |
1 installment in February 2016 |
No guarantee |
Bradesco |
- |
154,665 |
US$ + 1.72% (2) (f) |
1 installment in June 2016 |
No guarantee |
Santander |
- |
197,044 |
US$ + 1.918% (3) |
1 installment in September 2016 |
No guarantee |
CPFL Paulista |
|||||
Bank of America Merrill Lynch |
323,778 |
397,324 |
US$+Libor 3 months+1.35% (3) (f) |
1 installment in october 2018 |
CPFL Energia guarantee and promissory notes |
Bank of America Merrill Lynch |
145,099 |
175,750 |
US$+Libor 3 months+1.70% (4) |
1 installment in September 2018 |
CPFL Energia guarantee and promissory notes |
Bank of Tokyo-Mitsubishi |
161,493 |
195,524 |
US$ + Libor 3 months + 0.88% (3) (g) |
1 installment in February 2020 |
CPFL Energia guarantee and promissory notes |
Bank of Tokyo-Mitsubishi |
161,308 |
195,380 |
US$+Libor 3 months+0.80% (3) (f) |
4 semiannual installments from September 2017 |
CPFL Energia guarantee and promissory notes |
BNP Paribas |
72,601 |
85,991 |
Euro + 1.6350% (3) |
1 installment in January 2018 |
CPFL Energia guarantee and promissory notes |
Citibank |
- |
195,502 |
US$+Libor 3 months + 1.35% (4) |
1 installment in March 2019 |
CPFL Energia guarantee and promissory notes |
Citibank |
- |
227,397 |
US$ + Libor 3 months + 1.44% (3) |
1 installment in January 2020 |
CPFL Energia guarantee and promissory notes |
HSBC |
279,652 |
338,504 |
US$ + Libor 3 months + 1.30% (3) |
1 installment in January 2018 |
CPFL Energia guarantee and promissory notes |
J.P. Morgan |
129,850 |
156,381 |
US$ + 2.28% to 2.32% (3) |
1 installment in December 2017 |
CPFL Energia guarantee and promissory notes |
J.P. Morgan |
113,435 |
138,255 |
US$ + 2.36% to 2.39% (3) |
1 installment in January 2018 |
CPFL Energia guarantee and promissory notes |
J.P. Morgan |
81,078 |
98,891 |
US$ + 2.74% (3) |
1 installment in January 2019 |
CPFL Energia guarantee and promissory notes |
J.P. Morgan |
48,500 |
59,080 |
US$ + 2.2% (3) |
1 installment in February 2018 |
CPFL Energia guarantee and promissory notes |
Bank of America Merrill Lynch |
484,895 |
587,094 |
US$ + Libor 3 months + 1.40% (3) |
1 installment in February 2018 |
CPFL Energia guarantee and promissory notes |
Mizuho Bank |
241,811 |
292,895 |
US$+Libor 3 months+1.55% (3) (f) |
3 semiannual installments from March 2018 |
CPFL Energia guarantee and promissory notes |
Morgan Stanley |
- |
196,502 |
US$ + Libor 6 months + 1.75% (3) |
1 installment in September 2016 |
CPFL Energia guarantee and promissory notes |
Scotiabank |
- |
95,502 |
US$ + 3.3125% (3) |
1 installment in July 2016 |
CPFL Energia guarantee and promissory notes |
Syndicated loan - Bank of America Merrill Lynch, Citibank, HSBC and EDC-Export Development Canada |
215,698 |
- |
US$ + Libor 3 months + 2.7% (4) |
5 semiannual installments from May 2019 |
CPFL Energia guarantee and promissory notes |
CPFL Piratininga |
|||||
Bank of America Merrill Lynch |
- |
48,964 |
US$ + Libor 3 months + 1.15% (3) |
1 installment in July 2016 |
CPFL Energia guarantee and promissory notes |
Bank of America Merrill Lynch |
- |
97,849 |
US$ + Libor 3 months + 1.15% (3) |
1 installment in August 2016 |
CPFL Energia guarantee and promissory notes |
BNP Paribas |
199,654 |
236,474 |
Euro + 1.6350% (3) |
1 installment in January 2018 |
CPFL Energia guarantee and promissory notes |
Citibank |
202,231 |
244,778 |
US$ + Libor 3 months + 1.41% (3) |
2 annual installments from January 2019 |
CPFL Energia guarantee and promissory notes |
Citibank |
161,410 |
195,502 |
US$ + Libor 3 months + 1.35% (4) |
1 installment in March 2019 |
CPFL Energia guarantee and promissory notes |
Santander |
- |
177,268 |
US$ + 2.58% (3) |
1 installment in July 2016 |
CPFL Energia guarantee and promissory notes |
Scotiabank |
- |
124,737 |
US$ + 3.3125% (3) |
1 installment in July 2016 |
CPFL Energia guarantee and promissory notes |
Scotiabank |
53,360 |
64,980 |
US$ + 2.08% (3) |
1 installment in August 2017 |
CPFL Energia guarantee and promissory notes |
Sumitomo |
161,875 |
195,938 |
US$ + Libor 3 months + 1.35% (3) (f) |
1 installment in April 2018 |
CPFL Energia guarantee and promissory notes |
Syndicated loan - Bank of America Merrill Lynch, Citibank, HSBC and EDC-Export Development Canada |
215,698 |
- |
US$ + Libor 3 months + 2.7% (4) |
5 semiannual installments from May 2019 |
CPFL Energia guarantee and promissory notes |
RGE |
|||||
Bank of Tokyo-Mitsubishi |
58,189 |
70,439 |
US$ + Libor 3 months + 0.82%(3) |
1 installment in April 2018 |
CPFL Energia guarantee and promissory notes |
Bank of Tokyo-Mitsubishi |
264,787 |
320,602 |
US$ + Libor 3 months + 0.83%(3) |
1 installment in May 2018 |
CPFL Energia guarantee and promissory notes |
Citibank |
- |
58,683 |
US$ + Libor 3 months + 1.25%(4) |
2 annual installments from May 2018 |
CPFL Energia guarantee and promissory notes |
Citibank |
- |
274,426 |
US$ + Libor 6 months + 1.45% (3) |
1 installment in April 2017 |
CPFL Energia guarantee and promissory notes |
HSBC |
44,000 |
53,260 |
US$ + Libor 3 months + 1.30% (3) |
1 installment in October 2017 |
CPFL Energia guarantee and promissory notes |
J.P. Morgan |
196,253 |
239,453 |
US$ + 2.78% (3) |
1 installment in February 2018 |
CPFL Energia guarantee and promissory notes |
J.P. Morgan |
- |
139,466 |
US$ + 1.35% (3) |
1 installment in February 2016 |
CPFL Energia guarantee and promissory notes |
Syndicated loan - Bank of America Merrill Lynch, Citibank, HSBC and EDC-Export Development Canada |
215,698 |
- |
US$ + Libor 3 months + 2.7% (4) |
5 semiannual installments from May 2019 |
CPFL Energia guarantee and promissory notes |
CPFL Santa Cruz |
|||||
Santander |
- |
34,679 |
US$ + 2.544% (3) |
1 installment in June 2016 |
CPFL Energia guarantee and promissory notes |
Scotiabank |
16,237 |
- |
US$ + 3.37% (4) (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes |
CPFL Sul Paulista |
|||||
Santander |
- |
38,147 |
US$ + 2.544% (3) |
1 installment in June 2016 |
CPFL Energia guarantee and promissory notes |
Scotiabank |
16,237 |
- |
US$ + 3.37% (4) (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes |
CPFL Leste Paulista |
|||||
Scotiabank |
16,237 |
- |
US$ + 3.37% (4) (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes |
CPFL Jaguari |
|||||
Santander |
- |
53,752 |
US$ + 2.544% (3) |
1 installment in June 2016 |
CPFL Energia guarantee and promissory notes |
Scotiabank |
16,237 |
- |
US$ + 3.37% (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes |
CPFL Geração |
|||||
HSBC |
322,562 |
390,757 |
US$+Libor 3 months + 1.30% (3) |
1 installment in March 2017 |
CPFL Energia guarantee and promissory notes |
CCB-China Construction Bank |
96,860 |
- |
US$+Libor 3 months + 1.60% + 1.4% fee (4) |
1 installment in June 2019 |
CPFL Energia guarantee and promissory notes |
Scotiabank |
115,281 |
- |
US$ + 3.37% (4) (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes |
Citibank |
387,064 |
- |
US$+Libor 3 months + 1.41% (3) (f) |
3 annual installments from September 2018 |
CPFL Energia guarantee and promissory notes |
CCB China |
32,263 |
- |
US$ + 3.37% (4) (g) |
1 installment in July 2019 |
CPFL Energia guarantee and promissory notes |
CPFL Serviços |
|||||
J.P. Morgan |
12,238 |
14,760 |
US$ + 1.75% (3) |
1 installment in October 2016 |
CPFL Energia guarantee and promissory notes |
Paulista Lajeado |
|||||
Banco Itaú |
35,094 |
42,862 |
US$ + 3.196% (4) |
1 installment in March 2018 |
CPFL Energia guarantee and promissory notes |
CPFL Brasil |
|||||
Scotiabank |
43,705 |
53,317 |
US$ + 2.779% (3) |
1 installment in August 2018 |
CPFL Energia guarantee and promissory notes |
Mark to market |
(83,436) |
(312,249) |
|||
Total Foreign Currency - fair value |
5,258,930 |
6,940,180 |
|||
Borrowing costs(*) |
(35,387) |
(21,618) |
|||
Total - Consolidated |
12,770,130 |
14,662,787 |
|||
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) 99% to 109% of CDI |
||||
(2) 95.2% of CDI |
(4) 109.1% to 119% of CDI |
||||
Effective rate: |
|||||
(a) 30% to 40% of CDI |
(e) 80.1% to 90% of CDI |
(i) CDI + 0.73% |
|||
(b) 40.1% to 50% of CDI |
(f) 100.1% to 110% of CDI |
(J) Fixed rate 10.57% |
|||
(c) 60.1% to 70% of CDI |
(g) 110.1% to 120% of CDI |
(k) 130.01% a 140% of CDI |
|||
(d) 70.1% to 80% of CDI |
(h) 120.1% to 130% of CDI |
(l) 50.1% a 60% of CDI |
56
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
(*) In accordance with IAS 39 / CPC 08, this refers to the fundraising costs attributable to issuance of the respective debts
(**) Syndicated transaction - foreign currency financial loans, with a group of financial institutions as counterparty.
(***) Modification of the loan conditions in the quarter in accordance with the addendum to the contract.
In conformity with CPC 38 and 39 and IAS 32 and 39, the Company and its subsidiaries classified their debts as (i) other financial liabilities (or measured at amortized cost), and (ii) financial liabilities measured at fair value through profit and loss.
The objective of classification as financial liabilities of borrowings measured at fair value is to compare the effects of recognition of income and expense derived from marking derivatives to market, tied to the borrowings, in order to obtain more relevant and consistent accounting information. At September 30, 2016, the total balance of the borrowings measured at fair value was R$ 5,258,931 (R$ 6,940,180 at December 31, 2015).
Changes in the fair values of these borrowings are recognized in the finance income/expense of the Company and its subsidiaries. In September 30, 2016 the accumulated gains of R$ 83,436 (R$ 312,249 at December 31, 2015) on marking the borrowings to market, less losses of R$ 4,484 (R$ 184,518 at December 31, 2015) of marking to market the derivative financial instruments contracted as a hedge against foreign exchange variations (note 33), resulted in a total net gain of R$ 78,952 (R$ 127,731 at December 31, 2015).
The maturities of the principal of borrowings are scheduled as follows:
Maturity |
Consolidated | |
From October 1, 2017 |
420,303 | |
2018 |
3,968,893 | |
2019 |
2,595,561 | |
2020 |
1,342,590 | |
2021 |
685,426 | |
2022 to 2026 |
1,524,106 | |
2027 to 2031 |
607,293 | |
2032 to 2036 |
45,636 | |
Subtotal |
11,189,808 | |
Mark to market |
(82,186) | |
Total |
11,107,624 |
57
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Main borrowings in the period:
|
|
R$ thousand |
|
| ||||||||
Company |
Bank / credit line |
Total approved |
Released in 2016 |
Released net of fundraising costs |
Interest |
Utilization | ||||||
Local currency: |
||||||||||||
Investment: |
||||||||||||
CPFL Paulista |
FINEM VII |
427,716 |
27,075 |
26,421 |
Quarterly |
Subsidiary's investment plan | ||||||
CPFL Piratininga |
FINEM VI |
194,862 |
7,866 |
7,586 |
Quarterly |
Subsidiary's investment plan | ||||||
RGE |
FINEM VII |
266,790 |
21,125 |
20,740 |
Quarterly |
Subsidiary's investment plan | ||||||
CPFL Serviços |
FINAME (a) |
12,277 |
9,009 |
9,009 |
Quarterly |
Purchase of machinery and equipment | ||||||
CPFL Esco |
FINAME (a) |
1,543 |
1,525 |
1,525 |
Quarterly |
Purchase of machinery and equipment | ||||||
CPFL Renováveis |
FINEM XIII |
379,948 |
38,873 |
38,873 |
Monthly |
Subsidiary's investment plan | ||||||
CPFL Renováveis |
FINEM XXVII |
69,103 |
67,628 |
67,628 |
Monthly |
Subsidiary's investment plan | ||||||
CPFL Renováveis |
FINEM XXVI |
764,109 |
168,028 |
166,675 |
Monthly |
Subsidiary's investment plan | ||||||
Financial institutions: |
||||||||||||
CPFL Sul Paulista |
Banco IBM / CCB |
6,459 |
6,459 |
6,459 |
Semiannual |
Working capital improvement | ||||||
CPFL Renováveis - Alto Irani |
Banco Safra / redeemable preferred shares of the subsidiary Alto Irani (a) |
75,000 |
75,000 |
73,416 |
Semiannual |
Subsidiary's investment plan | ||||||
CPFL Renováveis - Plano Alto |
Banco Safra / redeemable preferred shares of the subsidiary Plano Alto (a) |
55,000 |
55,000 |
53,838 |
Semiannual |
Subsidiary's investment plan | ||||||
CPFL Renováveis parent company |
Banco BBM/BCN (a) |
44,000 |
44,000 |
44,000 |
Bullet |
Working capital improvement | ||||||
CPFL Renováveis parent company |
Banco ABC/BCN (a) |
44,000 |
44,000 |
44,000 |
Bullet |
Subsidiary's investment plan | ||||||
CPFL Renováveis |
Banco ABC/promissory notes (a) |
100,000 |
100,000 |
99,294 |
Semiannual |
Working capital improvement | ||||||
CPFL Renováveis: Figueirópolis |
Banco Safra / redeemable preferred shares of the subsidiary Figueirópolis (a) |
70,000 |
70,000 |
68,521 |
Semiannual |
Subsidiary's investment plan | ||||||
2,510,807 |
735,586 |
727,985 |
||||||||||
Foreign currency |
||||||||||||
Financial institutions: |
||||||||||||
CPFL Paulista |
Syndicated loan : Bank of America Merrill Lynch, Citibank, HSBC e EDC / Law 4.131 |
236,127 |
236,127 |
232,458 |
Quarterly |
Working capital improvement | ||||||
CPFL Piratininga |
Syndicated loan : Bank of America Merrill Lynch, Citibank, HSBC e EDC / Law 4.131 |
236,127 |
236,127 |
232,461 |
Quarterly |
Working capital improvement | ||||||
RGE |
Syndicated loan : Bank of America Merrill Lynch, Citibank, HSBC e EDC / Law 4.131 |
236,127 |
236,127 |
232,461 |
Quarterly |
Working capital improvement | ||||||
CPFL Santa Cruz |
Scotiabank / Law 4.131 |
16,484 |
16,484 |
16,484 |
Semiannual |
Working capital improvement | ||||||
CPFL Leste Paulista |
Scotiabank / Law 4.131 |
16,484 |
16,484 |
16,484 |
Semiannual |
Working capital improvement | ||||||
CPFL Sul Paulista |
Scotiabank / Law 4.131 |
16,484 |
16,484 |
16,484 |
Semiannual |
Working capital improvement | ||||||
CPFL Jaguari |
Scotiabank / Law 4.131 |
16,484 |
16,484 |
16,484 |
Semiannual |
Working capital improvement | ||||||
CPFL Geração |
Scotiabank / Law 4.131 |
117,036 |
117,036 |
117,036 |
Semiannual |
Working capital improvement | ||||||
CPFL Geração |
Citibank / Law 4.131 |
397,320 |
397,320 |
397,320 |
Quarterly |
Working capital improvement | ||||||
CPFL Geração |
CCB China / Law 4.131 (a) |
32,617 |
32,617 |
32,617 |
Quarterly |
Working capital improvement | ||||||
CPFL Geração |
CCB China / Law 4.131 (a) |
104,454 |
104,454 |
104,454 |
Quarterly |
Working capital improvement | ||||||
1,425,744 |
1,425,744 |
1,414,744 |
||||||||||
6,447,358 |
2,896,918 |
2,870,714 |
||||||||||
(a) the agreement has no restrictive covenants
Borrowings are subject to certain restrictive covenants and include clauses that require the Company and/or its subsidiaries to maintain certain financial ratios within pre-established parameters. The loan contracts also include non-financial restrictive clauses, complied with in accordance with the latest assessment period.
Some loans contracted or with releases in 2016 have the clauses related to financial indicators, as follow:
FINEM VI and VII - CPFL Paulista, CPFL Piratininga and RGE
Maintenance, by the subsidiaries, of the following ratios:
· Net indebtedness divided by EBITDA – maximum of 3.5
58
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
· Net indebtedness divided by the sum of net indebtedness and Shareholder’s Equity – maximum of 0.90
CPFL Renováveis (calculated in indirect subsidiary CPFL Renováveis and its subsidiaries, except when mentioned in each specific item)
FINEM XIII
· Maintaining the Debt Service Coverage Ratio (ICSD) at 1.3 or more.
FINEM XXVI
· Maintaining the Debt Service Coverage Ratio (ICSD) at 1.3 or more in the subsidiaries covered by the contract.
· Maintaining the annual ICSD recorded in the consolidated financial statements for the subsidiary Turbina 16 at 1.3 or more.
FINEM XXVII
· Maintaining the ICSD at 1.2 or more;
· Equity ratio (ICP), defined as the ratio of Equity to Total Assets, at 39.5% or more;
Syndicated loan - Bank of America Merrill Lynch, Citibank, HSBC, EDC (Law 4.131) – CPFL Paulista, CPFL Piratininga and RGE
Maintaining the following ratios in the Company's consolidated financial statements
· Net indebtedness divided by EBITDA – maximum of 3.75;
· EBITDA divided by financial income (expense) - minimum of 2.25.
Scotiabank and Citibank (Law 4.131) – CPFL Santa Cruz, CPFL Leste Paulista, CPFL Sul Paulista, CPFL Jaguari and CPFL Geração
Maintaining the following ratios in the Company's consolidated financial statements
· Net indebtedness divided by EBITDA – maximum of 3.75;
· EBITDA divided by financial income (expense) - minimum of 2.25.
The details of the restrictive conditions for other debts are presented in the Financial Statements of December 31, 2015.
The Management of the Company and its subsidiaries monitor these ratios systematically and constantly to ensure that the contractual conditions are complied with. In the opinion of the Management of the Company and of its subsidiaries, all the restrictive covenants and clauses that are measured half-yearly and annually are adequately complied with in accordance with the latest assessment period, at June 30, 2016 and December 31, 2015, respectively.
59
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 17 ) DEBENTURES AND INTERESTS ON DEBENTURES
Consolidated | |||||||||||||||||
September 30, 2016 |
December 31, 2015 | ||||||||||||||||
Issue |
Current and noncurrent interest |
Current |
Noncurrent |
Total |
Current and noncurrent interest |
Current |
Noncurrent |
Total | |||||||||
CPFL Paulista |
|||||||||||||||||
6th Issue |
Single series |
23,532 |
198,000 |
462,000 |
683,532 |
47,292 |
- |
660,000 |
707,292 | ||||||||
7th Issue |
Single series |
11,096 |
- |
505,000 |
516,096 |
29,546 |
- |
505,000 |
534,546 | ||||||||
34,628 |
198,000 |
967,000 |
1,199,628 |
76,838 |
- |
1,165,000 |
1,241,838 | ||||||||||
CPFL Piratininga |
|||||||||||||||||
6th Issue |
Single series |
3,922 |
33,000 |
77,000 |
113,922 |
7,882 |
- |
110,000 |
117,882 | ||||||||
7th Issue |
Single series |
5,163 |
- |
235,000 |
240,163 |
13,749 |
- |
235,000 |
248,749 | ||||||||
9,085 |
33,000 |
312,000 |
354,085 |
21,631 |
- |
345,000 |
366,631 | ||||||||||
RGE |
|||||||||||||||||
6th Issue |
Single series |
17,827 |
150,000 |
350,000 |
517,827 |
35,828 |
- |
500,000 |
535,828 | ||||||||
7th Issue |
Single series |
3,735 |
- |
170,000 |
173,735 |
9,946 |
- |
170,000 |
179,946 | ||||||||
21,563 |
150,000 |
520,000 |
691,563 |
45,774 |
- |
670,000 |
715,774 | ||||||||||
CPFL Santa Cruz |
|||||||||||||||||
1st Issue |
Single series |
3,085 |
32,500 |
32,500 |
68,085 |
568 |
- |
65,000 |
65,568 | ||||||||
CPFL Brasil |
|||||||||||||||||
2nd Issue |
Single series |
- |
- |
- |
- |
2,794 |
- |
228,000 |
230,794 | ||||||||
CPFL Geração |
|||||||||||||||||
5th Issue |
Single series |
55,815 |
546,000 |
546,000 |
1,147,815 |
13,382 |
- |
1,092,000 |
1,105,382 | ||||||||
6th Issue |
Single series |
7,193 |
- |
460,000 |
467,193 |
23,531 |
- |
460,000 |
483,531 | ||||||||
7th Issue |
Single series |
41,581 |
- |
635,000 |
676,581 |
16,770 |
- |
635,000 |
651,770 | ||||||||
8th Issue |
Single series |
2,124 |
- |
85,164 |
87,287 |
3,153 |
- |
80,024 |
83,177 | ||||||||
106,713 |
546,000 |
1,726,164 |
2,378,877 |
56,835 |
- |
2,267,024 |
2,323,859 | ||||||||||
CPFL Renováveis |
|||||||||||||||||
1st Issue - SIIF (*) |
1st to 12th series |
2,106 |
40,997 |
473,374 |
516,477 |
788 |
38,965 |
467,577 |
507,329 | ||||||||
1st Issue - PCH Holding 2 |
Single series |
663 |
8,701 |
132,091 |
141,455 |
616 |
8,701 |
140,792 |
150,109 | ||||||||
1st Issue - Renováveis |
Single series |
20,436 |
43,000 |
322,500 |
385,936 |
6,579 |
43,000 |
365,500 |
415,079 | ||||||||
2nd Issue - Renováveis |
Single series |
359 |
30,000 |
270,000 |
300,359 |
11,894 |
- |
300,000 |
311,894 | ||||||||
3rd Issue - Renováveis |
Single series |
16,843 |
- |
296,000 |
312,843 |
4,589 |
- |
296,000 |
300,589 | ||||||||
1st Issue - DESA |
Single series |
1,721 |
17,500 |
8,750 |
27,971 |
862 |
17,500 |
17,500 |
35,862 | ||||||||
2nd Issue - DESA |
Single series |
25,889 |
- |
65,000 |
90,889 |
16,487 |
- |
65,000 |
81,487 | ||||||||
1st Issue - T-16 |
Single series |
- |
- |
- |
- |
1,810 |
277,200 |
- |
279,010 | ||||||||
1st Issue - Campos dos Ventos V |
Single series |
- |
- |
- |
- |
374 |
42,000 |
- |
42,374 | ||||||||
1st Issue - Santa Úrsula |
Single series |
1,492 |
30,800 |
- |
32,292 |
275 |
30,800 |
- |
31,075 | ||||||||
1st Issue - Pedra Cheirosa I |
Single series |
4,427 |
52,200 |
- |
56,627 |
- |
- |
- |
- | ||||||||
1st Issue - Pedra Cheirosa II |
Single series |
4,054 |
47,800 |
- |
51,854 |
- |
- |
- |
- | ||||||||
1st Issue - Boa Vista II |
Single series |
4,241 |
50,000 |
- |
54,241 |
- |
- |
- |
- | ||||||||
82,231 |
320,997 |
1,567,715 |
1,970,944 |
44,274 |
458,165 |
1,652,369 |
2,154,808 | ||||||||||
Borrowing costs (**) |
- |
(5,418) |
(18,979) |
(24,397) |
- |
- |
(28,842) |
(28,842) | |||||||||
257,306 |
1,275,079 |
5,106,400 |
6,638,785 |
248,714 |
458,165 |
6,363,552 |
7,070,430 |
(*) These debentures can be converted into shares and, therefore, are considered in the calculation of the dilutive effect for earnings per share (note 25)
(**) In accordance with CPC 08/IAS 39, this refers to borrowings costs attributable to issuance of the respective debt instruments.
60
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Issue |
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 | ||||
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 | ||||
CPFL Santa Cruz |
||||||||||
1st Issue |
Single series |
650 |
CDI + 1.4% |
CDI + 1.52% |
2 annual instalments from June 2017 |
CPFL Energia guarantee | ||||
CPFL Brasil |
||||||||||
2nd Issue |
Single series |
2,280 |
CDI + 1.4% |
CDI + 1.48% |
2 annual instalments from June 2017 |
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 | ||||
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 - 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 | ||||
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 2018 |
Unsecured | ||||
1st Issue - T-16 |
Single series |
27,720 |
112.75% of CDI |
116.94% of CDI |
1 installment in December 2016 |
CPFL Renováveis guarantee | ||||
1st Issue - Campos dos Ventos V |
Single series |
4,200 |
112.75% of CDI |
116.94% of CDI |
1 installment in December 2016 |
CPFL Renováveis guarantee | ||||
1st Issue - Santa Úrsula |
Single series |
3,080 |
112.75% of CDI |
116.94% of CDI |
1 installment in December 2016 |
CPFL Renováveis guarantee | ||||
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 | ||||
The Company and its 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 |
The maturities of the debentures recognized in noncurrent liabilities are scheduled as follows:
Maturity |
Consolidated |
From October 1, 2017 |
29,072 |
2018 |
1,650,606 |
2019 |
1,915,662 |
2020 |
666,799 |
2021 |
445,823 |
2022 to 2026 |
316,841 |
2027 to 2031 |
81,597 |
Total |
5,106,400 |
Main borrowings during the period
R$ thousand |
| |||||||||||
Company |
Issue |
Quantity issued |
Released in 2016 |
Released net of borrowing costs |
Interest |
Utilization | ||||||
CPFL Renováveis - Pedra Cheirosa I |
1st issue |
5,220 |
52,200 |
51,602 |
Single payment |
Subsidiary's investment plan | ||||||
CPFL Renováveis - Pedra Cheirosa II |
1st issue |
4,780 |
47,800 |
47,251 |
Single payment |
Subsidiary's investment plan | ||||||
CPFL Renováveis - Boa Vista I! |
1st issue |
5,000 |
50,000 |
49,426 |
Single payment |
Subsidiary's investment plan | ||||||
150,000 |
148,279 |
RESTRICTIVE COVENANTS
The debentures are subject to certain restrictive covenants, including clauses that require the Company and its subsidiaries to maintain certain financial ratios within pre-established parameters. The loan contracts also include non-financial restrictive clauses, complied with in accordance with the latest assessment.
61
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
The debentures issued in 2016 contain no restrictive clauses that require the Company or its subsidiaries to maintain financial ratios.The details of the restrictive conditions for other debts are presented in the Financial Statements of December 31, 2015.
The Management of the Company and its subsidiaries monitor those ratios systematically and constantly for the conditions to be fulfilled. In the opinion of the Management of the Company and of its subsidiaries, all the restrictive covenants and clauses that are measured half-yearly and annually are adequately complied with in accordance with the latest assessment period, at June 30, 2016 and December 31, 2015 respectively.
( 18 ) PRIVATE PENSION PLAN
The subsidiaries sponsor supplementary retirement and pension plans for their employees as described in Note 19 to the December 31, 2015 financial statements.
18.1 Movements in the defined benefit plans:
The movements in the period in the net actuarial liability are as follows:
CPFL Paulista |
CPFL Piratininga |
CPFL Geração |
RGE |
Total | |||||
Net actuarial liability at December 31, 2015 |
437,670 |
10,308 |
10,277 |
- |
458,255 | ||||
Expenses (income) recognized in the statement of profit or loss |
45,319 |
5,060 |
1,160 |
(56) |
51,483 | ||||
Sponsors' contributions transferred during the year |
(47,969) |
(11,465) |
(1,000) |
(7,421) |
(67,855) | ||||
Actuarial loss (gain): effect of changes in financial assumptions |
277,013 |
102,326 |
8,088 |
16,936 |
404,363 | ||||
Net actuarial liability at September 30, 2016 |
712,033 |
106,229 |
18,525 |
9,459 |
846,246 | ||||
Other contributions |
18,013 |
1,246 |
351 |
120 |
19,730 | ||||
Total liability |
730,046 |
107,475 |
18,876 |
9,579 |
865,976 | ||||
Current |
8,946 | ||||||||
Noncurrent |
857,031 |
In the first semester of 2016, due to the change in the Brazilian macroeconomic scenario in comparison with December 31, 2015, the actuarial reports were updated to the base date of June 30, 2016 and the balances of liabilities and other comprehensive income were adjusted at that date to reflect the new reports.
62
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
The income and expense recognized as operating cost are shown below:
Nine months 2016 | |||||||||
CPFL Paulista |
CPFL Piratininga |
CPFL Geração |
RGE |
Consolidated | |||||
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 |
(303,882) |
(87,027) |
(7,228) |
(26,689) |
(424,827) | ||||
Interest on the effect of asset ceiling |
- |
- |
- |
520 |
520 | ||||
Total expense (income) |
45,319 |
5,060 |
1,160 |
(56) |
51,483 | ||||
Nine months 2015 | |||||||||
CPFL Paulista |
CPFL Piratininga |
CPFL Geração |
RGE |
Consolidated | |||||
Service cost |
954 |
2,910 |
141 |
19 |
4,024 | ||||
Interest on actuarial obligations |
315,237 |
81,999 |
7,314 |
17,378 |
421,928 | ||||
Expected return on plan assets |
(275,656) |
(76,893) |
(7,116) |
(17,252) |
(376,917) | ||||
Total expense (income) |
40,535 |
8,016 |
340 |
145 |
49,036 |
As mentioned above, due to the changes in the Brazilian macroeconomic scenario, the actuarial reports were updated to June 2016. The estimated income and expense to be recorded in the fourth quarter of 2016, based on the most recent actuarial reports, is shown below:
4th quarter 2016 - estimated | |||||||||
CPFL Paulista |
CPFL Piratininga |
CPFL Geração |
RGE |
Consolidated | |||||
Service cost |
224 |
994 |
21 |
25 |
1,263 | ||||
Interest on actuarial obligations |
119,274 |
31,319 |
2,852 |
9,134 |
162,577 | ||||
Expected return on plan assets |
(100,302) |
(28,581) |
(2,356) |
(8,944) |
(140,182) | ||||
Total expense (income) |
19,195 |
3,732 |
517 |
215 |
23,658 |
The main assumptions taken into consideration in the actuarial calculation, based on the actuarial reports as at June 30, 2016, December 31, 2015 and 2014, were as follows:
June 30, 2016 |
December 31, 2015 |
December 31, 2014 | |||
Nominal discount rate for actuarial liabilities: |
11.25% p.a. |
12.67% p.a. |
11.46% p.a. | ||
Nominal Return Rate on Assets: |
11.25% p.a. |
12.67% p.a. |
11.46% p.a. | ||
Estimated Rate of nominal salary increase: |
6.79% p.a. |
6.79% p.a. |
8.15% p.a. | ||
Estimated Rate of nominal benefits increase: |
0.00% p.a. |
0.00% p.a. |
0.00% 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. | ||
General biometric mortality table: |
AT-2000 (-10) |
AT-2000 (-10) |
AT-2000 (-10) | ||
Biometric table for the onset of disability: |
Low light |
Low light |
Low light | ||
Expected turnover rate: |
ExpR_2012** |
ExpR_2012** |
ExpR_2012* | ||
Likelihood of reaching retirement age: |
100% on first eligibility for a full benefit |
100% on first eligibility for a full benefit |
100% on first eligibility for a full benefit | ||
(*) FUNCESP experience |
|||||
(**) FUNCESP experience, with aggravation of 40% |
63
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 19 ) REGULATORY CHARGES
Consolidated | |||
September 30, 2016 |
December 31, 2015 | ||
Fee for the use of water resources |
2,132 |
2,482 | |
Global reversal reserve - RGR |
17,469 |
17,446 | |
ANEEL inspection fee |
1,520 |
1,764 | |
Energy development account - CDE |
262,882 |
526,199 | |
Tariff flags and other |
838 |
304,127 | |
Total |
284,841 |
852,017 |
Energy development account – CDE: refer to the (i) annual CDE quota for the year 2016 in the amount of R$ 143,017 (R$ 401,347 at December 31, 2015); (ii) quota intended for return of the CDE injection for the period from January 2013 to January 2014 in the amount of R$ 36,699 (R$ 45,618 at December 31, 2015); and (iii) quota intended for return of the injection into the Regulated Contracting Environment (ACR) account for the period from February to December 2014, in the amount of R$ 83,166 (R$ 79,231 at December 31, 2015). The subsidiaries conducted matching of accounts between the amount of CDE payable and the accounts receivable – Eletrobrás (note 11) the amount of R$ 428,387 in the nine months ended in September 30, 2016.
Tariff flags and other: refer basically to the amount to be passed on to the Account Centralizing Tariff Flag Resources (“CCRBT”) (note 26.5). As a result of the improved hydrological conditions, the tariff flag charges were suspended after April, leaving only rebilling.
( 20 ) TAXES, FEES AND CONTRIBUTIONS
Consolidated | |||
September 30, 2016 |
December 31, 2015 | ||
Current |
|||
ICMS (State VAT) |
386,664 |
384,151 | |
PIS (tax on revenue) |
22,164 |
33,199 | |
COFINS (tax on revenue) |
102,579 |
159,317 | |
IRPJ (corporate income tax) |
91,943 |
30,751 | |
CSLL (social contribution on net income) |
34,356 |
12,498 | |
Other |
33,780 |
33,427 | |
Total |
671,486 |
653,342 |
64
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 21 ) PROVISION FOR TAX, CIVIL AND LABOR RISKS AND ESCROW DEPOSITS
Consolidated | |||||||
September 30, 2016 |
December 31, 2015 | ||||||
Provision for tax, civil and labor risks |
Escrow Deposits |
Provision for tax, civil and labor risks |
Escrow Deposits | ||||
Labor |
145,627 |
81,162 |
171,989 |
78,345 | |||
Civil |
181,056 |
110,381 |
194,530 |
112,909 | |||
Tax |
|||||||
FINSOCIAL |
31,775 |
89,283 |
29,917 |
84,092 | |||
Income Tax |
146,295 |
147,798 |
138,524 |
886,271 | |||
Other |
87,335 |
69,866 |
15,920 |
63,600 | |||
265,405 |
306,948 |
184,362 |
1,033,964 | ||||
Other |
21,179 |
635 |
18,654 |
2,310 | |||
Total |
613,267 |
499,126 |
569,534 |
1,227,527 |
The movements in the provision for tax, civil and labor risks are shown below:
Consolidated | |||||||||||
December 31, 2015 |
Addition |
Reversal |
Payment |
Monetary restatement |
September 30, 2016 | ||||||
Labor |
171,989 |
92,199 |
(47,714) |
(85,443) |
14,596 |
145,627 | |||||
Civil |
194,530 |
78,552 |
(33,643) |
(83,891) |
25,508 |
181,056 | |||||
Tax |
184,362 |
70,310 |
(3,695) |
(840) |
15,268 |
265,405 | |||||
Other |
18,654 |
12,026 |
(5,900) |
(5,059) |
1,458 |
21,179 | |||||
569,534 |
253,088 |
(90,952) |
(175,232) |
56,830 |
613,267 |
The provision for tax, civil and labor risks was based on the assessment of the risks of losing the lawsuits to which the Company and its subsidiaries are parties, where the likelihood of loss is probable in the opinion of the external legal counselors and the Management of the Company and its subsidiaries.
The additions to provisions for tax risks in the nine months ended in September 30, 2016 largely refer to challenges by certain subsidiaries in relation to PIS and COFINS on financial income, the balances of which were previously classified in Taxes Payable.
Details of the provisions for tax, civil and labor risks and escrow deposits are presented in the financial statements of December 31, 2015.
Possible losses
The Company and its subsidiaries are parties to other lawsuits in which Management, supported by its external legal counselors, believes that the chances of a successful outcome are possible, due to a solid defensive position in these cases, therefore no allowances were registered. It is not yet possible to predict the outcome of the courts’ decisions or any other decisions in similar proceedings considered probable or remote.
The claims relating to possible losses, at September 30, 2016 and December 31, 2015, were as follows:
65
(Free Translation of the original in Portuguese)
Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated |
|||||
September 30, 2016 |
December 31, 2015 |
Main claims | |||
Labor |
622,693 |
659,636 |
Workplace accidents, hazardous duty premium, overtime, etc | ||
Civil |
782,586 |
697,242 |
Bodily injury, environmental impacts, tariff increases, etc | ||
Tax |
4,118,792 |
3,600,368 |
ICMS, FINSOCIAL, PIS and COFINS, Income tax, etc | ||
Regulatory |
91,080 |
71,514 |
Collection of the system service charge - ESS, established in the CNPE Resolution 3, etc | ||
Total |
5,615,151 |
5,028,760 |
|||
Tax - in addition to the above-mentioned cases, there is a dispute concerning to the deductibility of the expense recognized in 1997 in relation to the commitment assumed for the pension plan of the employees of the subsidiary CPFL Paulista with Fundação CESP in the estimated amount of R$ 1,118,898. In January 2016, the subsidiary obtained court decisions authorizing the replacement of the escrow deposits related to this case by financial guarantees (letter of guarantee and performance bond); 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, with no suspensive effect, are awaiting judgment by the Federal Regional Court.
Additionally, in August 2016, the subsidiary CPFL Renováveis received a deficiency and penalty notice for R$ 285,537 in relation to collection of withholding tax - IRRF on interest on capital gain incurred for persons resident and/or domiciled abroad, as a result of the sale of Jantus SL in December 2011. Company management and its external legal consultants classified the chances of success as possible.
As regards labor contingencies, the Company informs, as mentioned in Note 22 to the financial statements at December 31, 2015, that discussions are in course concerning the possibility of changing the inflation adjustment index adopted by the Labor Court. There has been no change in the status of the discussion since then and the risk is still classified as possible.
Based on the opinion of their external legal advisers, Management of the Company and its subsidiaries consider that the registered amounts represent best estimate.
( 22 ) USE OF PUBLIC ASSET
Consolidated | ||||||||
Subsidiary |
September 30, 2016 |
December 31, 2015 |
Number of remaining installments |
Interest rates | ||||
CERAN |
97,607 |
92,581 |
234 |
IGP-M + 9.6% p.a. | ||||
Current |
9,941 |
9,457 |
||||||
Noncurrent |
87,666 |
83,124 |
66
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 23 ) OTHER PAYABLES
Consolidated | |||||||
Current |
Noncurrent | ||||||
September 30, 2016 |
December 31, 2015 |
September 30, 2016 |
December 31, 2015 | ||||
Consumers and concessionaires |
52,143 |
53,959 |
- |
- | |||
Energy efficiency program - PEE |
225,649 |
295,745 |
35,014 |
35,597 | |||
Research & Development - P&D |
76,526 |
84,943 |
29,023 |
36,426 | |||
National scientific and technological development fund - FNDCT |
1,942 |
4,115 |
- |
- | |||
Energy research company - EPE |
978 |
2,065 |
- |
- | |||
Reversion fund |
- |
- |
17,750 |
17,750 | |||
Advances |
213,431 |
141,228 |
8,106 |
10,041 | |||
Tariff discounts - CDE |
17,241 |
54,749 |
- |
- | |||
Provision for socio environmental costs |
8,989 |
- |
56,308 |
53,378 | |||
Payroll |
10,833 |
13,136 |
- |
- | |||
Profit sharing |
38,812 |
49,227 |
3,935 |
5,099 | |||
Collections agreement |
53,635 |
130,282 |
- |
- | |||
Guarantees |
- |
- |
26,343 |
28,531 | |||
Business combination |
11,929 |
29,935 |
- |
- | |||
Other |
25,148 |
45,587 |
3,979 |
4,326 | |||
Total |
737,258 |
904,971 |
180,457 |
191,148 |
Advances: refer mainly to advances from customers in relation to advance billing by the subsidiary CPFL Renováveis, prior to provision of the energy or service.
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 24 ) EQUITY
The shareholders’ interest in the Company’s equity at September 30, 2016 and December 31, 2015 is shown below:
Number of shares | ||||||||
September 30, 2016 |
December 31, 2015 | |||||||
Shareholders |
Common shares |
Interest % |
Common shares |
Interest % | ||||
BB Carteira Livre I FIA |
73,008,816 |
7.17% |
262,698,037 |
26.45% | ||||
Caixa de Previdência dos Funcionários do Banco do Brasil - Previ |
226,778,743 |
22.28% |
29,756,032 |
3.00% | ||||
Camargo Correa S.A. |
5,897,311 |
0.58% |
26,764 |
0.00% | ||||
ESC Energia S.A. |
234,086,204 |
23.00% |
234,086,204 |
23.57% | ||||
Bonaire Participações S.A. |
1,259,386 |
0.12% |
1,238,334 |
0.12% | ||||
Energia São Paulo FIA |
150,146,050 |
14.75% |
146,463,379 |
14.75% | ||||
Fundação Petrobras de Seguridade Social - Petros |
1,861,658 |
0.18% |
1,816,119 |
0.18% | ||||
BNDES Participações S.A. |
68,592,097 |
6.74% |
66,914,177 |
6.74% | ||||
Antares Holdings Ltda. |
16,967,165 |
1.67% |
16,552,110 |
1.67% | ||||
Brumado Holdings Ltda. |
36,497,075 |
3.59% |
35,604,273 |
3.59% | ||||
Members of the Executive Board |
34,250 |
0.00% |
105,672 |
0.01% | ||||
Other shareholders |
202,785,991 |
19.92% |
197,753,114 |
19.91% | ||||
Total |
1,017,914,746 |
100.00% |
993,014,215 |
100.00% |
24.1 Capital increase approval
On April 8, 2016, the company disclosed to its shareholders and to the market in general, in a Relevant Fact, that its controlling shareholders had signed an instrument releasing shareholders from the shareholders' agreement in relation to the shares they will receive in connection with the share bonus process.
An Extraordinary General Meeting held on April 29, 2016 approved an increase in the capital of CPFL Energia to reinforce the Company's capital structure, through integralization of the amount of R$ 392,972 from the Statutory - Working Capital Reserve, by issuing 24,900,531 common shares, distributed as a bonus to the shareholders, free of charge, pursuant to Law 6404/76, Article 169.
24.2Share transfer between ESC Energia S.A. and Camargo Corrêa S.A.
On March 16, 2016, Extraordinary General Meetings of ESC Energia S.A. (“ESC”) and Camargo Corrêa S.A. (“CCSA”) approved the transfer of 5,870,000 of the Company's common shares held by ESC to CCSA. An Extraordinary General Meetings of ESC held on June 28, 2016 approved an increase in the capital of ESC, paid up by CCSA with the transfer of 124 of the Company's common shares.
The change in shareholding structure was registered with the bank responsible for the Company's book-issue shares (Banco do Brasil) on July 15, 2016. There will be no change in the Company's controlling block as a result of this transaction.
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24.3 Share transfer between BB CL I FIA and Caixa de Previdência dos Funcionários do Banco do Brasil (Previ)
On September 22, 2016, the Company announced to the market that it had received, on that date, confirmation of the share transfer whereby BB CL I FIA transferred to Previ all its shares in the Company, tied to the Control Block and totaling R$ 196,276,558. As from the transfer date, Previ started to exercise its rights and obligations under the Shareholders' Agreement.
24.4 Share transfer between Bonaire Participações S.A. (“Bonaire”) and Energia São Paulo Fundo de Investimento em Ações (“Energia SP FIA”)
On September 23, 2016, the Company announced to the market that it had received, on that date, confirmation of the share transfer whereby Bonaire transferred 10,000 common shares issued by the Company and tied to the Control Block to Energia SP FIA. As from the transfer date, SP FIA holds 150,146,050 common shares in the Company, of which 112,196,990 are tied to the Shareholders' Agreement. In turn, Bonaire is no longer a part of the Company's control block, which Energia SP FIA has now joined.
24.5 Dividends
In accordance with the decision of the EGM of April 29, 2016 to declare the minimum mandatory dividend, the Company registered R$ 205,423 in dividends payable, of which R$ 204,695 were paid by September 30, 2016.
Details of the items included in shareholders’ equity are described in the financial statements of December 31, 2015.
( 25 ) EARNINGS PER SHARE
Earnings per share – basic and diluted
The calculation of the basic and diluted earnings per share for the quarters and in the nine months ended in September 30, 2016 and 2015 was based on the profit attributable to controlling shareholders and the weighted average number of common shares outstanding during the reporting periods. For diluted earnings per share, the calculation considered the dilutive effects of instruments convertible into shares, as shown below:
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
2016 |
2015 |
||||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months |
||||||
Numerator |
|||||||||
Profit attributable to controlling shareholders |
231,565 |
762,725 |
267,613 |
560,763 |
|||||
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 |
|||||||||
0.23 |
0.75 |
0.26 |
0.55 |
||||||
Numerator |
|||||||||
Profit attributable to controlling shareholders |
231,565 |
762,725 |
267,613 |
560,763 |
|||||
Dilutive effect of convertible debentures of subsidiary CPFL Renováveis (*) |
(7,179) |
(7,179) |
(8,109) |
(9,297) |
|||||
Profit attributable to controlling shareholders |
224,386 |
755,546 |
259,504 |
551,466 |
|||||
Denominator |
1,017,914,746 |
(**) |
1,017,914,746 |
(**) |
1,017,914,746 |
(**) |
1,017,914,746 |
(**) | |
Weighted average number of shares held by shareholders |
|||||||||
Earnings per share - diluted |
0.22 |
0.74 |
0.25 |
0.54 |
(*) Proportional to the percentage of the Company’s equity interest in the subsidiary in the respective periods.
(**) Considers the event that occurred on April 29, 2016, related to the capital increase through issue of 24,900,531 shares (note 24.1). 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.
The dilutive effect of the numerator in the calculation of diluted earnings per share takes into account the dilutive effects of the debentures convertible into shares issued by subsidiaries of the indirect subsidiary CPFL Renováveis. The calculation of the effects was based on the assumption that these debentures would have been converted into common shares of the subsidiary at the beginning of each period.
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 26 ) NET OPERATING REVENUE
Consolidated | |||||||
2016 |
2015 | ||||||
Revenue from Electric Energy Operations |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||
Consumer class |
|||||||
Residential |
2,304,438 |
7,611,526 |
2,436,370 |
7,143,389 | |||
Industrial |
1,295,120 |
3,963,933 |
1,435,735 |
4,076,963 | |||
Commercial |
1,196,170 |
4,023,477 |
1,283,248 |
3,802,990 | |||
Rural |
191,310 |
552,378 |
207,657 |
545,181 | |||
Public administration |
154,934 |
495,974 |
172,381 |
505,307 | |||
Public lighting |
139,861 |
428,024 |
152,119 |
394,125 | |||
Public services |
214,077 |
665,123 |
235,353 |
643,284 | |||
(-) Transfers of revenues from excess demand and excess reactive power |
(15,654) |
(51,277) |
(22,212) |
(70,995) | |||
Billed |
5,480,257 |
17,689,157 |
5,900,651 |
17,040,242 | |||
Unbilled (net) |
(5,845) |
93,319 |
92,965 |
165,215 | |||
Other consumer charges / Emergency Charges - ECE/EAEE |
- |
- |
- |
3 | |||
(-) Transfers of revenues related to network usage charge of the captive consumers |
(2,064,321) |
(6,700,140) |
(2,083,257) |
(5,811,271) | |||
Electricity sales to final consumers |
3,410,091 |
11,082,336 |
3,910,359 |
11,394,189 | |||
Furnas Centrais Elétricas S.A. |
137,893 |
396,271 |
123,281 |
362,185 | |||
Other concessionaires and licensees |
682,584 |
1,683,927 |
600,918 |
1,633,991 | |||
(-) Transfers of revenues related to network usage charge of the captive consumers |
(11,773) |
(37,721) |
(12,157) |
(34,250) | |||
Spot market energy |
192,485 |
320,981 |
87,281 |
734,527 | |||
Electricity sales to wholesaler´s |
1,001,189 |
2,363,458 |
799,324 |
2,696,453 | |||
Revenue due to Network Usage Charge - TUSD - Captive Consumers |
2,076,094 |
6,737,861 |
2,095,414 |
5,845,521 | |||
Revenue due to Network Usage Charge - TUSD - Free Consumers |
531,631 |
1,506,994 |
532,612 |
1,420,249 | |||
(-) Transfers of revenues from excess demand and excess reactive power |
(4,124) |
(12,671) |
(4,859) |
(16,759) | |||
Revenue from construction of concession infrastructure |
325,100 |
816,950 |
252,049 |
767,769 | |||
Sector financial asset and liability |
(558,007) |
(1,752,239) |
727,814 |
2,311,969 | |||
Energy development account - CDE - low-income and other tariff discounts |
430,363 |
925,383 |
251,969 |
661,261 | |||
Other revenues and income |
119,215 |
323,502 |
80,365 |
253,282 | |||
Other operating revenues |
2,920,272 |
8,545,780 |
3,935,365 |
11,243,293 | |||
Total gross revenues |
7,331,552 |
21,991,574 |
8,645,047 |
25,333,935 | |||
Deductions from operating revenues |
|||||||
ICMS |
(1,103,749) |
(3,619,844) |
(1,174,121) |
(3,409,243) | |||
PIS |
(111,639) |
(341,665) |
(136,124) |
(395,455) | |||
COFINS |
(514,251) |
(1,573,816) |
(627,346) |
(1,821,893) | |||
ISS |
(2,817) |
(7,719) |
(1,928) |
(5,830) | |||
Global reversal reserve - RGR |
(2,142) |
(3,527) |
(636) |
(1,893) | |||
Energy development account - CDE |
(788,646) |
(2,465,988) |
(1,171,424) |
(2,740,100) | |||
Research and development and energy efficiency |
(33,494) |
(99,783) |
(37,631) |
(116,167) | |||
PROINFA |
(30,732) |
(79,641) |
(21,004) |
(68,914) | |||
Tariff flags and other |
(125) |
(377,223) |
(501,159) |
(1,337,281) | |||
IPI |
(40) |
(124) |
- |
(3) | |||
FUST and FUNTEL |
(10) |
(27) |
(7) |
(17) | |||
Other |
(6,532) |
(19,370) |
(6,497) |
(17,350) | |||
|
(2,594,177) |
(8,588,728) |
(3,677,875) |
(9,914,147) | |||
Net revenue |
4,737,375 |
13,402,846 |
4,967,172 |
15,419,789 |
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated | |||||||
2016 |
2015 | ||||||
Revenue from electric energy operations - in GWh (*) |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||
Consumer class |
|||||||
Residential |
3,755 |
12,023 |
3,761 |
12,071 | |||
Industrial |
3,312 |
9,546 |
3,142 |
9,574 | |||
Commercial |
2,184 |
7,121 |
2,089 |
6,847 | |||
Rural |
593 |
1,624 |
559 |
1,604 | |||
Public administration |
288 |
913 |
297 |
933 | |||
Public lighting |
432 |
1,277 |
417 |
1,228 | |||
Public services |
446 |
1,349 |
449 |
1,346 | |||
Billed |
11,010 |
33,853 |
10,713 |
33,602 | |||
Own consumption |
7 |
24 |
8 |
24 | |||
Electricity sales to final consumers |
11,017 |
33,877 |
10,720 |
33,627 | |||
Furnas Centrais Elétricas S.A. |
763 |
2,272 |
763 |
2,263 | |||
Other concessionaires and licensees |
3,509 |
8,934 |
2,987 |
8,095 | |||
Spot market energy |
2,973 |
4,737 |
849 |
2,567 | |||
Electricity sales to wholesaler´s |
7,245 |
15,943 |
4,599 |
12,925 |
Consolidated | |||
Number of Consumers (*) | |||
September 30, 2016 |
September 30, 2015 | ||
Consumer class |
|||
Residential |
7,036,187 |
6,870,146 | |
Industrial |
54,242 |
56,015 | |
Commercial |
467,295 |
476,009 | |
Rural |
247,832 |
244,146 | |
Public administration |
52,005 |
51,226 | |
Public lighting |
10,843 |
10,249 | |
Public services |
8,580 |
8,322 | |
Total |
7,877,828 |
7,716,113 | |
(*) Information not reviewed by the independent auditors |
26.1 Adjustment of revenues from excess demand and excess reactive power
The information on accounting and background is provided in Note 27.1 to the December 31, 2015 financial statements.
26.2 Periodic tariff revision (“RTP”) e Annual adjustment (“RTA”):
2016 |
2015 | |||||||||
Subsidiary |
Month |
RTA / RTP |
Effect perceived by consumers (a) |
RTA / RTP |
Effect perceived by consumers (a) | |||||
CPFL Paulista |
April |
9.89% |
7.55% |
41.45% |
4.67% (c) | |||||
CPFL Piratininga |
October (b) |
-12.54% |
-24.21% |
56.29% |
21.11% (c) | |||||
RGE |
June |
-1.48% |
-7.51% |
33.48% |
-3.76% (c) | |||||
CPFL Santa Cruz |
March |
22.51% |
7.15% |
34.68% |
27.96% | |||||
CPFL Leste Paulista |
March |
21.04% |
13.32% |
20.80% |
24.89% | |||||
CPFL Jaguari |
March |
29.46% |
13.25% |
38.46% |
45.70% | |||||
CPFL Sul Paulista |
March |
24.35% |
12.82% |
24.88% |
28.38% | |||||
CPFL Mococa |
March |
16.57% |
9.02% |
23.34% |
29.28% |
a) Represents the average effect perceived by consumers, as a result of elimination from the tariff base of financial components added in the annual adjustment for the previous year (not reviewed by the independent auditors).
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b) As mentioned in Note 35.4, the annual tariff adjustment for the subsidiary CPFL Piratininga occurred in October 2016.
c) Perception of consumers in comparison to the extraordinary tariff review of March 2015.
26.3 CDE contribution - low income, other tariff subsidies and tariff discounts - injunctions
26.3.1 CDE contribution - low income, other tariff subsidies
Law 12,783 of January 11, 2013 determined that the amounts related to the low-income subsidy, as well as other tariff discounts shall be fully subsidized by amount from the CDE.
Income of R$ 739,110 was recognized in the nine months ended September 30, 2016 (R$ 661,261 in the in the nine months ended September 30, 2015), of which (i) R$ 70,912 for the low-income subsidy (R$ 48,593 in the nine months ended September 30, 2015) and (ii) R$ 668,198 for other tariff discounts (R$ 612,668 in the nine months ended September 30, 2015), against other receivables in line item “Receivables –Eletrobrás” (note 11) and “Tariff discounts – CDE” (note 23).
26.3.2 Tariff discounts – injunctions
On July, 2015, the Associação Brasileira de Grandes Consumidores Industriais de Energia Elétrica (“ABRACE”) obtained an injunction that released its associates from paying specific items of the Energy Development Account - CDE charge. There was no change in the obligation to pay the CDE quota and the distributors bore the cost of this income deficit. In the tariff process subsequent to the injunction decision, ANEEL granted a financial component in the tariff for recovery of the income.
However, the decision of the ANEEL board was overturned as per Order 1576/2016, which repealed Order 2792/2015, and the distributors were told to deduct all the effects of the injunctions from payment of the monthly CDE quotas. Accordingly, it was established that Eletrobrás will be held responsible for this cost.
As a result of the new procedure established in Order 1576/2016, it was necessary to:
(i) register income under CDE contribution - low income, other tariff subsidies and tariff discounts - injunctions, set against trade accounts receivable - Eletrobrás (Note 11) totaling R$ 186,272; and
(ii) register a sector financial liability (Note 8) against revenue from sector financial assets and liabilities amounting to R$ 209,250, which will be reimbursed to consumers in the next tariff process.
26.4 Tariff flags
The Tariff Flag implementation system is described in Note 27.5 to the December 31, 2015 financial statements.
In the nine months ended September 30, 2016, the distribution subsidiaries billed their consumers the amount of R$ 377,223 (R$ 1,337,281 in the nine months ended September 30, 2015), recorded in line item "Tariff flags and others”. In the nine months ended September 30, 2016 were ratified by the ANEEL, R$ 670,025 for the months of November 2015 to May 2016 (R$ 690,452 in the nine months ended September 30, 2015) that was used to offset part of the sector’s financial assets (note 8), R$ 10,316 (R$ 141,503 in the nine months ended September 30, 2105) was passed on to the Account Centralizing Tariff Flags Resources (“CCRBT”), created by means of Decree No. 8,401/2015 and administered by the CCEE, and R$ 772 continues outstanding, recorded under liabilities – regulatory fees (note 19).
26.5 Energy development account – CDE
By means of Ratification Resolutions Nos. 2,077 of June 7, 2016, 2,018 of February 2, 2016, and 1,857 of February 27, 2015, the ANEEL established the definitive annual quotas of the CDE. This quota comprises: (i) annual quota of the CDE – Usage account; and (ii) CDE quota – Energy, 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 paid by consumers and passed on to the CDE in five years as from the 2015 RTE. In addition, by means of Ratification Resolution No. 1,863 of March 31, 2015, the ANEEL established another quota intended for amortization of the ACR account, with payment and transfer to the CDE for an average period of five years as from the ordinary tariff process (RTA or Periodic tariff review - RTP) for the year 2015.
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 27 ) COST OF ELECTRIC ENERGY
Consolidated | |||||||
2016 |
2015 | ||||||
Electricity Purchased for Resale |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||
Itaipu Binacional |
462,469 |
1,513,184 |
788,717 |
2,062,039 | |||
Spot market / PROINFA |
80,271 |
169,722 |
146,753 |
931,436 | |||
Energy purchased through auction in the regulated market and bilateral contracts |
2,168,998 |
5,960,300 |
2,028,996 |
7,139,727 | |||
PIS and COFINS credit |
(246,031) |
(697,945) |
(272,348) |
(925,591) | |||
Subtotal |
2,465,707 |
6,945,260 |
2,692,119 |
9,207,611 | |||
Electricity network usage charge |
|||||||
Basic network charges |
198,405 |
602,168 |
197,997 |
642,664 | |||
Transmission from Itaipu |
13,386 |
38,799 |
13,101 |
38,736 | |||
Connection charges |
22,142 |
57,487 |
15,017 |
38,409 | |||
Charges for use of the distribution system |
9,272 |
28,179 |
8,062 |
29,326 | |||
System service charges - ESS |
84,763 |
281,672 |
161,620 |
407,081 | |||
Reserve energy charges |
5,538 |
106,925 |
95,960 |
95,960 | |||
PIS and COFINS credit |
(28,700) |
(97,410) |
(43,833) |
(110,206) | |||
Subtotal |
304,806 |
1,017,820 |
447,923 |
1,141,970 | |||
Total |
2,770,513 |
7,963,080 |
3,140,041 |
10,349,581 |
Consolidated | |||||||
2016 |
2015 | ||||||
Electricity Purchased for Resale - in GWh (*) |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||
Itaipu Binacional |
2,556 |
7,603 |
2,579 |
7,669 | |||
Spot market / PROINFA |
461 |
1,631 |
647 |
3,384 | |||
Energy purchased through auction in the regulated market and bilateral contracts |
13,073 |
36,808 |
10,912 |
32,558 | |||
Total |
16,090 |
46,042 |
14,138 |
43,612 | |||
(*) Information not reviewed by the independent auditors |
27.1 Generating Scaling Factor (“GSF”) and renegotiation of the hydrologic risk from 2015
The detailed record related to the Generating Scaling Factor - GSF in 2015 are provided in Note 28.2 of the December 31, 2015 financial statements. The generators that adhered to the renegotiation should terminate the lawsuits against the grantor of the concessions, and pay a risk premium related to the transfer of the GSF risk to the CCRBT.
In 2015, the subsidiaries Ceran, CPFL Jaguari Geração (Paulista Lajeado) and CPFL Renováveis and the joint ventures ENERCAN and Chapecoense signed on to the renegotiations of their ACR contracts and canceled their lawsuits.
In 2016, the joint venture Baesa signed on to the renegotiation of its ACR contracts, thus terminating its participation in the lawsuit filed by the Brazilian Association of Independent Electric Energy Producers - APINE. For the Company, the net effect was R$ 5,102, net of tax effect, recognized as income from equity in subsidiaries.
74
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 28 ) OPERATING COSTS AND EXPENSES
Parent company | |||||||
Operating expense | |||||||
General | |||||||
2016 |
2015 | ||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months | ||||
Personnel |
12,391 |
28,345 |
5,230 |
15,411 | |||
Materials |
18 |
62 |
21 |
50 | |||
Third party services |
2,740 |
6,645 |
1,534 |
5,537 | |||
Depreciation and amortization |
46 |
148 |
43 |
123 | |||
Others |
888 |
1,825 |
1,333 |
2,302 | |||
Leases and rentals |
12 |
37 |
38 |
109 | |||
Publicity and advertising |
189 |
350 |
44 |
91 | |||
Legal, judicial and indemnities |
276 |
406 |
1,052 |
1,585 | |||
Donations, contributions and subsidies |
- |
- |
- |
46 | |||
Other |
410 |
1,031 |
199 |
471 | |||
Total |
16,083 |
37,025 |
8,161 |
23,422 |
75
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated | |||||||||||||||||||||||
3rd quarter | |||||||||||||||||||||||
Services Rendered to Third Parties |
Operating Expenses |
Total | |||||||||||||||||||||
Operating costs |
Sales |
General |
Other |
||||||||||||||||||||
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 | ||||||||||||
Personnel |
160,273 |
147,233 |
- |
- |
32,061 |
32,523 |
68,855 |
57,673 |
- |
- |
261,189 |
237,429 | |||||||||||
Private pension plans |
23,658 |
16,347 |
- |
- |
- |
- |
- |
- |
- |
- |
23,658 |
16,347 | |||||||||||
Materials |
59,038 |
34,134 |
211 |
175 |
2,121 |
1,371 |
3,396 |
3,016 |
- |
- |
64,766 |
38,696 | |||||||||||
Third party services |
66,425 |
49,687 |
627 |
482 |
36,662 |
32,655 |
52,817 |
59,910 |
- |
- |
156,531 |
142,734 | |||||||||||
Depreciation and amortization |
228,852 |
224,240 |
- |
- |
979 |
5,415 |
24,371 |
19,742 |
- |
- |
254,202 |
249,397 | |||||||||||
Cost of infrastructure construction |
- |
- |
324,154 |
251,887 |
- |
- |
- |
- |
- |
- |
324,154 |
251,887 | |||||||||||
Others |
23,938 |
14,388 |
(2) |
(4) |
51,857 |
46,420 |
42,631 |
42,639 |
74,560 |
65,041 |
192,984 |
168,484 | |||||||||||
Collection fees |
- |
- |
- |
- |
16,205 |
14,226 |
- |
- |
- |
- |
16,205 |
14,226 | |||||||||||
Allowance for doubtful accounts |
- |
- |
- |
- |
34,161 |
31,644 |
- |
- |
- |
- |
34,161 |
31,644 | |||||||||||
Leases and rentals |
9,909 |
7,527 |
- |
- |
- |
2 |
3,885 |
3,864 |
- |
- |
13,794 |
11,393 | |||||||||||
Publicity and advertising |
60 |
89 |
- |
- |
- |
11 |
3,971 |
3,102 |
- |
- |
4,031 |
3,202 | |||||||||||
Legal, judicial and indemnities |
- |
- |
- |
- |
- |
- |
29,258 |
47,595 |
- |
- |
29,258 |
47,595 | |||||||||||
Donations, contributions and subsidies |
22 |
- |
- |
- |
3 |
5 |
69 |
- |
- |
- |
94 |
5 | |||||||||||
Loss (gain) on disposal, retirement and other noncurrent assets |
- |
- |
- |
- |
- |
- |
- |
- |
12,290 |
239 |
12,290 |
239 | |||||||||||
Amortization of concession intangible asset |
- |
- |
- |
- |
- |
- |
- |
- |
62,365 |
64,882 |
62,365 |
64,882 | |||||||||||
Amortization of premium paid - GSF |
2,400 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
2,400 |
- | |||||||||||
Financial compensation for use of water resources |
2,936 |
4,040 |
- |
- |
- |
- |
- |
- |
- |
- |
2,936 |
4,040 | |||||||||||
Others |
8,612 |
2,733 |
(2) |
(4) |
1,489 |
533 |
5,449 |
(11,922) |
(95) |
(80) |
15,453 |
(8,740) | |||||||||||
Total |
562,184 |
486,029 |
324,990 |
252,540 |
123,680 |
118,385 |
192,069 |
182,980 |
74,560 |
65,041 |
1,277,483 |
1,104,974 |
76
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated | |||||||||||||||||||||||
Nine months | |||||||||||||||||||||||
Services Rendered to Third Parties |
Operating Expenses |
Total | |||||||||||||||||||||
Operating costs |
Sales |
General |
Other |
||||||||||||||||||||
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 |
2016 |
2015 | ||||||||||||
Personnel |
485,120 |
437,818 |
1 |
- |
93,951 |
93,470 |
194,285 |
167,602 |
- |
- |
773,357 |
698,886 | |||||||||||
Private pension plans |
51,483 |
49,036 |
- |
- |
- |
- |
- |
- |
- |
- |
51,483 |
49,036 | |||||||||||
Materials |
124,936 |
94,824 |
471 |
464 |
5,331 |
3,395 |
13,083 |
7,139 |
- |
- |
143,821 |
105,822 | |||||||||||
Third party services |
199,037 |
138,408 |
1,414 |
1,265 |
105,282 |
93,840 |
157,586 |
179,228 |
- |
- |
463,319 |
412,743 | |||||||||||
Depreciation and amortization |
676,204 |
637,831 |
- |
- |
2,635 |
20,975 |
71,458 |
60,199 |
- |
- |
750,297 |
719,004 | |||||||||||
Cost of infrastructure construction |
- |
- |
815,681 |
766,605 |
- |
- |
- |
- |
- |
- |
815,681 |
766,605 | |||||||||||
Others |
86,037 |
44,860 |
(8) |
(7) |
180,576 |
138,105 |
170,785 |
207,497 |
218,403 |
261,077 |
655,793 |
651,531 | |||||||||||
Collection fees |
- |
- |
- |
- |
47,519 |
42,603 |
- |
- |
- |
- |
47,519 |
42,603 | |||||||||||
Allowance for doubtful accounts |
- |
- |
- |
- |
130,026 |
94,109 |
- |
- |
- |
- |
130,026 |
94,109 | |||||||||||
Leases and rentals |
28,386 |
23,210 |
- |
- |
- |
- |
12,682 |
12,592 |
- |
- |
41,068 |
35,802 | |||||||||||
Publicity and advertising |
103 |
157 |
- |
- |
16 |
34 |
9,312 |
7,508 |
- |
- |
9,431 |
7,699 | |||||||||||
Legal, judicial and indemnities |
- |
- |
- |
- |
- |
- |
138,227 |
197,169 |
- |
- |
138,227 |
197,169 | |||||||||||
Donations, contributions and subsidies |
36 |
- |
- |
- |
6 |
16 |
127 |
223 |
- |
- |
169 |
239 | |||||||||||
Loss (gain) on disposal, retirement and other noncurrent assets |
- |
- |
- |
- |
- |
- |
- |
- |
32,272 |
27,704 |
32,272 |
27,704 | |||||||||||
Amortization of concession intangible asset |
- |
- |
- |
- |
- |
- |
- |
- |
186,272 |
233,574 |
186,272 |
233,574 | |||||||||||
Amortization of premium paid - GSF |
7,200 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
7,200 |
- | |||||||||||
Financial compensation for use of water resources |
9,909 |
10,250 |
- |
- |
- |
- |
- |
- |
- |
- |
9,909 |
10,250 | |||||||||||
Others |
40,403 |
11,243 |
(8) |
(7) |
3,009 |
1,342 |
10,438 |
(9,995) |
(141) |
(202) |
53,701 |
2,381 | |||||||||||
Total |
1,622,816 |
1,402,773 |
817,558 |
768,327 |
387,775 |
349,785 |
607,198 |
621,666 |
218,402 |
261,077 |
3,653,749 |
3,403,628 |
77
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Standard Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 29 ) FINANCE INCOME (EXPENSE)
Parent company |
Consolidated | ||||||||||||||
2016 |
2015 |
2016 |
2015 | ||||||||||||
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months |
3rd quarter |
Nine months | ||||||||
Financial income |
|||||||||||||||
Income from financial investments |
21,251 |
48,516 |
20,520 |
48,774 |
186,959 |
484,733 |
117,584 |
331,804 | |||||||
Late payment interest and fines |
460 |
464 |
2 |
3 |
58,088 |
174,934 |
56,540 |
151,868 | |||||||
Adjustment for inflation of tax credits |
1,569 |
5,419 |
3,251 |
3,334 |
9,528 |
27,078 |
4,903 |
12,016 | |||||||
Adjustment for inflation of escrow deposits |
12 |
34 |
10 |
25 |
9,287 |
26,835 |
23,137 |
61,440 | |||||||
Adjustment for inflation and exchange rate changes |
- |
1 |
- |
- |
29,647 |
131,639 |
41,044 |
79,839 | |||||||
Adjustment of expected cash flow (note 10) |
- |
- |
- |
- |
49,156 |
209,683 |
124,912 |
262,644 | |||||||
Discount on purchase of ICMS credit |
- |
- |
- |
- |
1,808 |
13,454 |
1,880 |
9,504 | |||||||
Adjustments to the sector financial asset (note 8) |
- |
- |
- |
- |
(5,944) |
50,643 |
54,799 |
97,902 | |||||||
PIS and COFINS on other finance income |
(1,248) |
(3,109) |
(1,219) |
(1,219) |
(22,882) |
(44,915) |
(19,277) |
(19,277) | |||||||
PIS and COFINS on interest on capital |
(14) |
(1,156) |
- |
(5,766) |
(14) |
(1,156) |
- |
(5,766) | |||||||
Other |
3,290 |
11,537 |
1,536 |
4,523 |
19,835 |
68,910 |
15,391 |
55,507 | |||||||
Total |
25,321 |
61,706 |
24,099 |
49,674 |
335,467 |
1,141,838 |
420,915 |
1,037,481 | |||||||
Finance expense |
|||||||||||||||
Interest on debts |
(1,772) |
(10,885) |
(11,568) |
(48,455) |
(447,606) |
(1,315,996) |
(440,368) |
(1,266,015) | |||||||
Adjustment for inflation and exchange rate changes |
(3,916) |
(25,959) |
(5,519) |
(12,776) |
(226,964) |
(515,106) |
(290,587) |
(561,883) | |||||||
(-) Capitalized interest |
- |
- |
- |
- |
18,493 |
52,432 |
19,026 |
28,790 | |||||||
Adjustments to the sector financial liability |
- |
- |
- |
- |
(996) |
(17,257) |
461 |
(1,348) | |||||||
Use of public asset |
- |
- |
- |
- |
(4,120) |
(12,470) |
(3,412) |
(10,152) | |||||||
Others |
(1) |
(470) |
(1,299) |
(4,676) |
(45,727) |
(135,856) |
(52,571) |
(126,897) | |||||||
Total |
(5,689) |
(37,315) |
(18,385) |
(65,906) |
(706,920) |
(1,944,253) |
(767,451) |
(1,937,505) | |||||||
Finance expense (income), net |
19,631 |
24,391 |
5,714 |
(16,232) |
(371,453) |
(802,416) |
(346,537) |
(900,024) |
Interest was capitalized at an average rate of 10.87% p.a. in the nine months ended September 30, 2016 (10.02% p.a. in the nine months ended September 30, 2015) on qualifying assets, in accordance with CPC 20 (R1) and IAS 23.
In line items of Adjustment for inflation and exchange rate changes, the expense includes the effects of losses of R$ 1,345,605 in the nine months ended September 30, 2016 (gain of R$ 1,788,264 in the nine months ended September 30, 2015) on derivative instruments (note 33).
( 30 ) SEGMENT INFORMATION
The segregation of the Company’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 based on similar market transactions. Note 1 presents the subsidiaries in accordance with their areas of operation and provides further information on each subsidiary and its business area and segment.
The information segregated by segment is presented below, in accordance with the criteria established by the Company’s Management:
78
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Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Distribution |
Generation (conventional source) |
Generation (renewable source) |
Commercialization |
Services |
Other (*) |
Elimination |
Total | ||||||||
Nine months 2016 |
|||||||||||||||
Net operating revenue |
10,493,292 |
436,358 |
934,182 |
1,427,923 |
68,225 |
42,866 |
13,402,846 | ||||||||
(-) Intersegment revenues |
16,752 |
304,028 |
229,817 |
50,015 |
229,907 |
6,330 |
(836,850) |
- | |||||||
Income from electric energy service |
853,812 |
501,075 |
316,945 |
100,937 |
51,129 |
(37,881) |
1,786,017 | ||||||||
Finance income |
826,349 |
131,604 |
97,742 |
25,317 |
6,845 |
53,981 |
1,141,838 | ||||||||
Finance expense |
(978,619) |
(415,278) |
(491,636) |
(11,208) |
(3,765) |
(43,746) |
(1,944,253) | ||||||||
Profit (loss) before taxes |
701,543 |
418,345 |
(76,950) |
115,045 |
54,209 |
(27,647) |
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 |
427,171 |
344,156 |
(116,787) |
78,877 |
41,051 |
(32,614) |
741,854 | ||||||||
Total assets (**) |
18,371,153 |
5,403,027 |
12,072,265 |
409,247 |
351,861 |
945,148 |
37,552,701 | ||||||||
Purchases of PP&E and intangible assets |
709,200 |
11,728 |
802,228 |
2,490 |
31,312 |
2,728 |
1,559,686 | ||||||||
Depreciation and amortization |
(421,536) |
(92,991) |
(406,679) |
(2,879) |
(9,933) |
(2,549) |
(936,569) | ||||||||
Nine months 2015 (***) |
|||||||||||||||
Net operating revenue |
12,739,346 |
436,812 |
881,921 |
1,280,422 |
80,130 |
1,157 |
15,419,789 | ||||||||
(-) Intersegment revenues |
16,765 |
283,277 |
265,727 |
34,789 |
170,429 |
- |
(770,987) |
- | |||||||
Income from electric energy service |
963,609 |
381,407 |
232,140 |
91,833 |
19,926 |
(22,336) |
1,666,580 | ||||||||
Finance income |
746,902 |
76,720 |
99,046 |
28,478 |
38,314 |
48,021 |
1,037,481 | ||||||||
Finance expense |
(989,772) |
(412,611) |
(435,250) |
(27,572) |
(6,410) |
(65,891) |
(1,937,505) | ||||||||
Profit (loss) before taxes |
720,740 |
170,501 |
(104,064) |
92,740 |
51,831 |
(40,206) |
891,541 | ||||||||
Income tax and social contribution |
(281,137) |
(14,750) |
(27,257) |
(32,179) |
(11,938) |
(11,509) |
(378,770) | ||||||||
Profit (loss) for the period |
439,602 |
155,752 |
(131,321) |
60,561 |
39,893 |
(51,715) |
512,771 | ||||||||
Total assets (**) |
22,138,086 |
4,575,230 |
11,868,943 |
714,781 |
317,845 |
917,586 |
40,532,471 | ||||||||
Purchases of PP&E and intangible assets |
612,642 |
2,574 |
287,131 |
1,219 |
27,274 |
548 |
931,388 | ||||||||
Depreciation and amortization |
(441,426) |
(99,089) |
(397,162) |
(3,521) |
(11,244) |
(136) |
(952,579) |
(*) Others – refer basically to assets and transactions which are not related to any of the identified segments.
(**) Intangible assets, net of amortization, were allocated to their respective segments.
(***) The amounts for the total assets refer to December 31, 2015.
( 31 ) RELATED PARTY TRANSACTIONS
The Company’s controlling shareholders are as follows:
· ESC Energia S.A.
Company controlled by the Camargo Corrêa group, with operations in diversified segments, such as construction, cement, textiles, aluminum and highway concessions, among others.
· Energia São Paulo Fundo de Investimento em Ações
Company controlled by the following pension funds: (a) Fundação CESP, (b) Fundação SISTEL de Seguridade Social, (c) Fundação Petrobras de Seguridade Social - PETROS, and (d) Fundação SABESP de Seguridade Social - SABESPREV.
· Bonaire Participações S.A, by September 23, 2016, when it transferred its shares to its parent company, Energia São Paulo Fundo de Investimento em Ações. (Note 24.2)
· BB Carteira Livre I - Fundo de Investimento em Ações, by September 22, 2016, when it transferred its shares to its parent company, PREVI - Caixa de Previdência dos Funcionários do Banco do Brasil. (Note 24.3)
The direct and indirect interest in operating subsidiaries are described in note 1.
Controlling shareholders, associates companies, joint ventures and entities under common control that in some way exercise significant influence over the Company are considered to be related parties.
The main transactions are listed below:
a) Bank balances and short-term investments – refer mainly to bank balances and short-term investments with financial institutions, as mentioned in note 5. The Company and its subsidiaries also have an Exclusive Investment Fund.
79
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Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
b) Borrowings, Debentures and Derivatives - refer to borrowings from financial institutions under the conditions described in notes 16 and 17. The Company is also the guarantor of certain borrowings raised by its subsidiaries and joint ventures, as described in notes 16 and 17.
c) Other Financial Transactions – the expense amounts are bank costs, collection and bookkeeping expenses.
d) Purchase and sale of energy and charges - refer basically to energy purchased or sold by distribution, commercialization and generation subsidiaries through short or long-term agreements and tariffs for the use of the distribution system (TUSD). Such transactions, when conducted in the free market, are carried out under conditions considered by the Company as similar to market conditions at the time of the trading, according to internal policies previously established by the Company’s management. When conducted in the regulated market, the prices charged are set through mechanisms established by the regulatory authority.
e) Intangible assets, Property, plant and equipment, Materials and Service – refer to the purchase of equipment, cables and other materials for use in distribution and generation activities and contracting of services such as construction and information technology consultancy.
f) Advances – refer to advances for investments in research and development.
g) Intragroup loans – refer to (i) contracts with the joint venture EPASA, under contractual conditions of 113.5% of the CDI, maturing in January 2017; (ii) contracts with the non-controlling shareholder of the subsidiary CPFL Renováveis, with maturity defined for the date of distribution of earnings of the indirect subsidiary to its shareholders and remuneration of 8% p.a. + IGP-M (General Market Price Index).
Certain subsidiaries have supplementary retirement plan maintained with Fundação CESP and offered to the employees of the subsidiaries. These plans hold investments in Company’s shares (note 18).
To ensure that commercial transactions with related parties are conducted under usual market conditions, the Company set up a “Related Parties Committee”, comprising representatives of the controlling shareholders, responsible for analyzing the main transactions with related parties.
The subsidiaries CPFL Paulista and CPFL Geração, renegotiated for payment in January and July 2017, with the joint ventures BAESA, Enercan and Ceran the extension of the original maturities of the energy purchase bills, previously from august 2016 to September 2016.
The total compensation of key management personnel in the nine months ended September 30, 2016, in accordance with CVM Decision 560/2008, was R$ 41,764 (R$ 34,434 in the nine months ended September 30, 2015). This amount comprises R$ 40,805 in respect of short-term benefits (R$ 33,662 in the nine months ended September 30, 2015), R$ 836 for post-employment benefits (R$ 772 in the nine months ended September 30, 2015) and R$ 123 for other long-term benefits (no corresponding amounts in the nine months ended September 30, 2015), recognized on an accrual basis.
Transactions between related parties involving controlling shareholders, entities under common control or with significant influence and joint ventures are as follows:
80
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated | |||||||||||||||
ASSET |
|
LIABILITY |
|
INCOME |
EXPENSES | ||||||||||
September 30, 2016 |
December 31, 2015 |
September 30, 2016 |
December 31, 2015 |
Nine months 2016 |
Nine months 2015 |
Nine months 2016 |
Nine months 2015 | ||||||||
Bank balances and short-term investments |
|||||||||||||||
Banco Bradesco S.A.(**) |
3,050,091 |
4,097,770 |
1 |
1 |
200,564 |
- |
539 |
- | |||||||
Banco do Brasil S.A. |
39,797 |
126,036 |
- |
- |
1,302 |
19,892 |
1 |
1 | |||||||
Borrowings (*), debentures (*) and derivatives (*) |
|||||||||||||||
Banco Bradesco S.A.(**) |
- |
- |
864,223 |
667,335 |
15,732 |
- |
50,103 |
- | |||||||
Banco do Brasil S.A. |
- |
- |
3,810,616 |
3,727,087 |
- |
- |
349,777 |
181,323 | |||||||
Banco BNP Paribas Brasil S.A (**) |
29,018 |
58,478 |
- |
322,465 |
- |
- |
43,305 |
- | |||||||
Other financial transactions |
|||||||||||||||
Banco Bradesco S.A.(**) |
36 |
1,344 |
1,275 |
1,259 |
50 |
- |
10,194 |
- | |||||||
Banco do Brasil S.A. |
- |
- |
798 |
879 |
156 |
- |
4,781 |
4,510 | |||||||
BAESA – Energética Barra Grande S.A. |
- |
- |
- |
- |
- |
- |
- |
4,866 | |||||||
Foz do Chapecó Energia S.A. |
- |
- |
- |
- |
- |
- |
- |
2,211 | |||||||
ENERCAN - Campos Novos Energia S.A. |
- |
- |
- |
- |
- |
- |
- |
2,669 | |||||||
Advances |
|||||||||||||||
BAESA – Energética Barra Grande S.A. |
- |
- |
763 |
790 |
- |
- |
- |
- | |||||||
Foz do Chapecó Energia S.A. |
- |
- |
1,081 |
1,120 |
- |
- |
- |
- | |||||||
ENERCAN - Campos Novos Energia S.A. |
- |
- |
1,333 |
1,377 |
- |
- |
- |
- | |||||||
EPASA - Centrais Elétricas da Paraiba |
- |
- |
486 |
503 |
- |
- |
- |
- | |||||||
Energy purchase and sale and charges |
|||||||||||||||
Afluente Transmissão de Energia Elétrica S.A. |
- |
- |
28 |
27 |
- |
- |
891 |
1,153 | |||||||
Aliança Geração de Energia S.A |
- |
- |
1,230 |
1,364 |
3 |
- |
38,479 |
22,086 | |||||||
Arizona 1 Energia Renovável S.A |
- |
- |
- |
- |
- |
- |
720 |
657 | |||||||
Baguari I Geração de Energia Elétrica S.A. |
- |
- |
6 |
6 |
- |
- |
217 |
198 | |||||||
BRF Brasil Foods |
- |
- |
- |
- |
14,152 |
- |
- |
- | |||||||
Braskem S.A. |
- |
- |
- |
- |
- |
- |
16,023 |
- | |||||||
Caetite 2 Energia Renovável S.A. |
- |
- |
- |
- |
- |
- |
662 |
602 | |||||||
Caetité 3 Energia Renovável S.A. |
- |
- |
- |
- |
- |
- |
668 |
608 | |||||||
Calango 1 Energia Renovável S.A. |
- |
- |
- |
- |
- |
- |
799 |
727 | |||||||
Calango 2 Energia Renovável S.A. |
- |
- |
- |
- |
- |
- |
681 |
622 | |||||||
Calango 3 Energia Renovável S.A. |
- |
- |
- |
- |
- |
- |
799 |
727 | |||||||
Calango 4 Energia Renovável S.A. |
- |
- |
- |
- |
- |
- |
742 |
674 | |||||||
Calango 5 Energia Renovável S.A. |
- |
- |
- |
- |
- |
- |
788 |
716 | |||||||
Companhia de Eletricidade do Estado da Bahia – COELBA |
386 |
655 |
- |
- |
14,440 |
10,858 |
- |
46 | |||||||
Companhia Energética de Pernambuco - CELPE |
417 |
587 |
- |
- |
7,295 |
5,241 |
183 |
206 | |||||||
Companhia Energética do Ceará - COELCE |
- |
- |
- |
- |
1,720 |
- |
- | ||||||||
Companhia Energética do Rio Grande do Norte - COSERN |
103 |
227 |
- |
- |
2,262 |
1,860 |
1,035 |
- | |||||||
Companhia Hidrelétrica Teles Pires S.A. |
- |
- |
1,550 |
1,548 |
41 |
- |
40,633 |
16,160 | |||||||
ELEB Equipamentos Ltda |
- |
- |
- |
- |
2,228 |
- |
- |
- | |||||||
Embraer |
- |
- |
- |
- |
5,816 |
19,105 |
- |
- | |||||||
Energética Águas da Pedra S.A. |
- |
- |
115 |
130 |
4 |
- |
3,674 |
3,111 | |||||||
Estaleiro Atlântico Sul S.A. |
- |
- |
- |
- |
5,958 |
14,594 |
- |
- | |||||||
Goiás Sul Geração de Enegia S.A. |
- |
- |
- |
- |
- |
- |
133 |
122 | |||||||
Itapebi Geração de Energia S.A |
- |
- |
- |
- |
3 |
- |
- |
- | |||||||
Mel 2 Energia Renovável S.A. |
- |
- |
- |
- |
- |
- |
533 |
474 | |||||||
NC ENERGIA S.A. |
- |
- |
- |
- |
19,505 |
4,033 |
9 |
- | |||||||
Norte Energia S.A. |
1 |
1 |
22,316 |
- |
11 |
- |
27,279 |
- | |||||||
Rio PCH I S.A. |
- |
- |
216 |
242 |
- |
- |
6,878 |
5,859 | |||||||
Santista Jeanswear S/A |
- |
- |
- |
- |
9,944 |
- |
- |
- | |||||||
Santista Work Solution S/A |
- |
- |
- |
- |
1,605 |
- |
- |
- | |||||||
SE Narandiba S.A. |
- |
- |
- |
- |
- |
- |
100 |
131 | |||||||
Serra do Facão Energia S.A. - SEFAC |
- |
- |
578 |
576 |
- |
- |
17,963 |
15,573 | |||||||
Tavex Brasil S.A |
- |
- |
- |
- |
- |
3,424 |
- |
- | |||||||
Termopernambuco S.A. |
- |
- |
- |
- |
5 |
- |
- |
- | |||||||
ThyssenKrupp Companhia Siderúrgica do Atlântico |
- |
- |
- |
- |
19,380 |
27,367 |
5,705 |
5,155 | |||||||
Vale Energia S.A. |
8,400 |
7,843 |
- |
- |
76,732 |
69,085 |
- |
695 | |||||||
BAESA – Energética Barra Grande S.A. |
- |
- |
17,238 |
88,441 |
- |
60,079 |
50,573 |
85,308 | |||||||
Foz do Chapecó Energia S.A. |
- |
- |
34,222 |
142,596 |
468 |
3,875 |
264,616 |
242,658 | |||||||
ENERCAN - Campos Novos Energia S.A. |
915 |
667 |
105,840 |
140,496 |
6,478 |
21,514 |
209,243 |
177,882 | |||||||
EPASA - Centrais Elétricas da Paraiba |
- |
- |
10,425 |
19,807 |
- |
15,251 |
63,494 |
125,118 | |||||||
Intangible assets, property, plant and equipment, materials and service |
|||||||||||||||
Aliança Geração de Energia S.A |
- |
- |
- |
- |
1 |
- |
- | ||||||||
Banco Bradesco S.A.(**) |
- |
- |
- |
2 |
- |
- |
- |
- | |||||||
Banco do Brasil S A |
- |
- |
- |
- |
44 |
- |
128 | ||||||||
Brasil veículos Companhia de Seguros |
- |
- |
- |
- |
2 |
- |
- |
- | |||||||
Brasilprev Seguros e Previdência S.A. |
- |
- |
17 |
- |
- |
- |
- |
- | |||||||
Centro de Gestão de Meios de Pagamento S.A. - CGMP |
- |
- |
- |
- |
- |
- |
2,699 |
- | |||||||
Companhia de Saneamento Básico do Estado de São Paulo - SABESP |
2 |
65 |
43 |
42 |
167 |
779 |
33 |
30 | |||||||
Companhia Brasileira de Soluções e Serviços CBSS - Alelo (**) |
- |
- |
- |
- |
- |
- |
1,768 |
- | |||||||
Companhia de Eletricidade do Estado da Bahia – COELBA |
- |
- |
- |
- |
- |
6 |
- |
50 | |||||||
Companhia Energética do Rio Grande do Norte - COSERN |
- |
- |
- |
- |
- |
1 |
- |
- | |||||||
Companhia Hidrelétrica Teles Pires S.A |
- |
- |
- |
- |
- |
8 |
- |
- | |||||||
Companhia Energética de Pernambuco - CELPE |
- |
- |
- |
- |
- |
3 |
- |
- | |||||||
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. (**) |
- |
- |
- |
- |
- |
- |
3 |
- | |||||||
Embraer |
- |
- |
- |
- |
7 |
- |
- |
- | |||||||
Energética Águas da Pedra S.A. |
- |
- |
- |
- |
- |
1 |
- |
- | |||||||
Estaleiro Atlântico Sul S.A. |
- |
- |
- |
- |
10 |
10 |
- |
- | |||||||
Ferrovia Centro-Atlântica S.A. |
14 |
- |
- |
- |
- |
- |
- |
- | |||||||
HM 14 Empreendimento Imobiliário SPE Ltda |
- |
14 |
- |
- |
- |
- |
- |
- | |||||||
HM 02 Empreendimento Imobiliário SPE Ltda. |
- |
- |
- |
- |
45 |
- |
- |
- | |||||||
Indústrias Romi S.A. |
4 |
- |
- |
- |
39 |
56 |
- |
- | |||||||
InterCement Brasil S.A |
- |
- |
- |
- |
43 |
26 |
- |
- | |||||||
Instituto CCR |
- |
- |
- |
- |
- |
- |
19 |
- | |||||||
Itapebi Geração de Energia S.A |
- |
- |
- |
- |
- |
1 |
- |
- | |||||||
Investco S.A |
- |
- |
1,755 |
- |
- |
- |
15,381 |
- | |||||||
Logum Logística S.A. |
- |
- |
- |
- |
702 |
- |
- |
- | |||||||
Mapfre Seguros Gerais S.A. (**) |
- |
- |
- |
- |
60 |
- |
56 |
- | |||||||
NC Energia S.A. |
- |
- |
- |
- |
6 |
- |
- |
- | |||||||
Rodovias Integradas do Oeste S.A. |
- |
- |
- |
12 |
- |
- |
- |
- | |||||||
SAMM - Sociedade de Atividades em Multimídia Ltda. |
93 |
- |
4 |
- |
845 |
- |
- |
- | |||||||
Tavex Brasil S.A |
- |
- |
- |
- |
- |
21 |
- |
- | |||||||
Termopernambuco S.A. |
- |
- |
- |
- |
- |
1 |
- |
- | |||||||
ThyssenKrupp Companhia Siderúrgica do Atlântico |
- |
- |
- |
- |
- |
1 |
- |
- | |||||||
TOTVS S.A. |
- |
- |
- |
3 |
- |
- |
44 |
32 | |||||||
Ultrafértil S.A |
13 |
- |
- |
- |
14 |
845 |
- |
- | |||||||
Vale Energia S.A. |
- |
- |
- |
- |
- |
3 |
- |
- | |||||||
Vale Fertilizantes S.A |
- |
39 |
- |
- |
147 |
- |
- |
- | |||||||
BAESA – Energética Barra Grande S.A. |
- |
- |
- |
- |
1,236 |
1,001 |
- |
- | |||||||
Foz do Chapecó Energia S.A. |
- |
- |
- |
- |
1,406 |
1,099 |
- |
- | |||||||
ENERCAN - Campos Novos Energia S.A. |
- |
- |
- |
- |
1,309 |
1,001 |
- |
- | |||||||
EPASA - Centrais Elétricas da Paraíba S.A. |
1,520 |
1,104 |
- |
427 |
505 |
- |
- | ||||||||
Intragroup loans |
|||||||||||||||
EPASA - Centrais Elétricas da Paraíba S.A. |
37,394 |
76,586 |
- |
- |
6,834 |
10,212 |
- |
- | |||||||
Noncontrolling shareholders - CPFL Renováveis |
8,898 |
7,680 |
- |
- |
1,099 |
965 |
- |
- | |||||||
Dividends and interest on capital |
|||||||||||||||
BAESA – Energética Barra Grande S.A. |
- |
20 |
- |
- |
- |
- |
- |
- | |||||||
Chapecoense Geração S.A. |
- |
28,417 |
- |
- |
- |
- |
- |
- | |||||||
ENERCAN - Campos Novos Energia S.A. |
13,424 |
30,905 |
- |
- |
- |
- |
- |
- | |||||||
EPASA - Centrais Elétricas da Paraiba |
- |
29,933 |
- |
- |
- |
- |
- |
- | |||||||
(*) Includes the mark to market value |
|||||||||||||||
(**) Related parties since December 31, 2015 |
81
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 32 ) RISK MANAGEMENT
The risk management structure and the main market risk factors affecting the Company's business are disclosed in Note 34 to the financial statements for the year ended in December 31, 2015.
( 33 ) FINANCIAL INSTRUMENTS
The main financial instruments, classified in accordance with the Company’s accounting practices, are:
Consolidated | |||||||||||||||
September 30, 2016 |
December 31, 2015 | ||||||||||||||
Note |
Category |
Measurement |
Level (*) |
Carrying amount |
|
Fair value |
Carrying amount |
|
Fair value | ||||||
Asset |
|||||||||||||||
Cash and cash equivalent |
5 |
(a) |
(2) |
Level 1 |
4,088,235 |
4,088,235 |
4,353,488 |
4,353,488 | |||||||
Cash and cash equivalent |
5 |
(a) |
(2) |
Level 2 |
1,256,430 |
1,256,430 |
1,329,314 |
1,329,314 | |||||||
Securities |
(a) |
(2) |
Level 1 |
53,147 |
53,147 |
23,633 |
23,633 | ||||||||
Derivatives |
33 |
(a) |
(2) |
Level 2 |
719,581 |
719,581 |
2,269,932 |
2,269,933 | |||||||
Derivatives - zero-cost collar |
33 |
(a) |
(2) |
Level 3 |
56,718 |
56,718 |
8,820 |
8,820 | |||||||
Concession financial asset - distribution |
10 |
(b) |
(2) |
Level 3 |
4,070,793 |
4,070,793 |
3,483,713 |
3,483,713 | |||||||
10,244,904 |
10,244,904 |
11,468,900 |
11,468,900 | ||||||||||||
Liability |
|||||||||||||||
Borrowings - principal and interest |
16 |
(c) |
(1) |
Level 2 (***) |
7,524,196 |
6,684,166 |
7,725,978 |
6,499,746 | |||||||
Borrowings - principal and interest |
16 (**) |
(a) |
(2) |
Level 2 |
5,245,934 |
5,245,934 |
6,936,808 |
6,936,808 | |||||||
Debentures - Principal and interest |
17 |
(c) |
(1) |
Level 2 (***) |
6,638,785 |
6,505,368 |
7,070,430 |
6,105,830 | |||||||
Derivatives |
33 |
(a) |
(2) |
Level 2 |
133,847 |
133,847 |
31,745 |
31,745 | |||||||
Derivatives - Zero-cost collar |
33 |
(a) |
(2) |
Level 3 |
- |
|
- |
|
2,440 |
|
2,440 | ||||
19,542,762 |
18,569,315 |
21,767,402 |
19,576,570 | ||||||||||||
(*) Refers to the hierarchy for determination of fair value |
|||||||||||||||
(**) As a result of the initial designation of this financial liability, the consolidated financial statements reported a loss of R$ 228,814 in the nine months of 2016 (gain of R$ 499,695 in the nine months of 2015) | |||||||||||||||
(***) Only for disclosure purposes, according to 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 finance liabilite |
The financial instruments for which the carrying amounts approximate the fair values at the end of the reporting period, due to their nature, are:
· Financial assets: (i) consumers, concessionaires and licensees, (ii) leases, (iii) associates, subsidiaries and parent company, (iv) receivables – Eletrobrás, (v) concession financial asset - transmission, (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) Nacional scientific and technological development fund - FNDCT, (vi) energy research company - EPE, (vii) collection agreement, (viii) reversal fund, (ix) payables for business combination, (x) tariff discount CDE and (xi) sector financial liability.
In addition, in the nine months ended September 30, 2016 there were no transfers between hierarchical levels of fair value.
a) Valuation 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.
82
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
CPC 40 (R1) and IFRS 7 requires the classification in a three-level hierarchy for fair value measurement of financial instruments, based on observable and unobservable inputs related to the valuation of a financial instrument at the measurement date.
CPC 40 (R1) and IFRS 7 also defines observable inputs as market data obtained from independent sources and unobservable inputs that reflects market assumptions.
The three levels of the fair value hierarchy are:
· Level 1: quoted prices in an active market for identical instruments;
· 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: inputs for the instruments that are not based on observable market data.
As the distribution subsidiaries have classified their concession financial asset as available-for-sale, the relevant factors for fair value measurement are not publicly observable. The fair value hierarchy classification is therefore level 3. The changes between years and the respective gains (losses) in profit for the nine months ended September 30, 2016 of R$ 209.683 (R$ 262,644 in the nine months ended September 30, 2015), 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 33 b.1.
The Company recognizes in “Investments at cost” in the financial statements the 5.94% interest held by the indirect subsidiary Paulista Lajeado Energia S.A. in the total capital of Investco S.A. (“Investco”), in the form of 28,154,140 common shares and 18,593,070 preferred shares. As Investco’s shares are not traded on the stock exchange and the main objective of its operations is to generate electric energy for commercialization by the shareholders holding the concession, the Company opted to recognize the investment at cost.
b) Derivatives
The Company and its subsidiaries have the policy of using derivatives to reduce their risks of fluctuations in exchange and interest rates, without any speculative purposes. The Company and its subsidiaries have exchange rate derivatives compatible with the exchange rate risks net exposure, including all the assets and liabilities tied to exchange rate changes.
The derivative instruments entered into by the Company and its subsidiaries are currency or interest rate swaps with no leverage component, margin call requirements or daily or periodical adjustments. Furthermore, in 2015 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 at fair value, for accounting purposes (note 16). Other debts with terms different from the derivatives contracted as a hedge continue to be recognized at amortized cost. Furthermore, the Company and its subsidiaries do not adopt hedge accounting for derivative instruments.
At September 30, 2016, the Company and its subsidiaries had the following swap transactions, all traded on the over-the-counter market:
83
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Fair values (carrying amounts) |
||||||||||||||||
Company / strategy / counterparts |
Assets |
Liabilities |
Fair value, net |
Values at cost, net |
Gain (loss) on marking to market |
Currency / index |
Maturity range |
Notional | ||||||||
Derivatives to hedge debts designated at fair value |
||||||||||||||||
Exchange rate hedge |
||||||||||||||||
CPFL Paulista |
||||||||||||||||
Bank of Tokyo-Mitsubishi |
41,933 |
- |
41,933 |
43,014 |
(1,080) |
dollar |
March 2019 |
117,400 | ||||||||
Bank of America Merrill Lynch |
39,145 |
- |
39,145 |
38,842 |
303 |
dollar |
September 2018 |
106,020 | ||||||||
Bank of America Merrill Lynch |
44,690 |
- |
44,690 |
44,416 |
274 |
dollar |
March 2019 |
116,600 | ||||||||
J.P.Morgan |
22,344 |
- |
22,344 |
22,208 |
136 |
dollar |
March 2019 |
58,300 | ||||||||
J.P.Morgan |
11,141 |
- |
11,141 |
11,134 |
7 |
dollar |
December 2017 |
51,470 | ||||||||
J.P.Morgan |
9,685 |
- |
9,685 |
9,661 |
25 |
dollar |
December 2017 |
53,100 | ||||||||
J.P.Morgan |
4,507 |
- |
4,507 |
4,422 |
85 |
dollar |
January 2018 |
27,121 | ||||||||
HSBC |
9,032 |
- |
9,032 |
8,769 |
263 |
dollar |
January 2018 |
54,214 | ||||||||
HSBC |
38,091 |
- |
38,091 |
36,851 |
1,240 |
dollar |
January 2018 |
173,459 | ||||||||
J.P.Morgan |
11,485 |
- |
11,485 |
11,023 |
462 |
dollar |
January 2018 |
67,938 | ||||||||
J.P.Morgan |
11,725 |
- |
11,725 |
11,363 |
362 |
dollar |
January 2019 |
67,613 | ||||||||
BNP Paribas |
7,738 |
- |
7,738 |
6,777 |
961 |
euro |
January 2018 |
63,896 | ||||||||
Bank of Tokyo-Mitsubishi |
10,362 |
- |
10,362 |
16,443 |
(6,080) |
dollar |
February 2020 |
142,735 | ||||||||
J.P.Morgan |
6,644 |
- |
6,644 |
6,634 |
10 |
dollar |
February 2018 |
41,100 | ||||||||
Bank of America Merrill Lynch |
74,569 |
- |
74,569 |
72,307 |
2,262 |
dollar |
February 2018 |
405,300 | ||||||||
Bank of America Merrill Lynch |
- |
(18,880) |
(18,880) |
(16,089) |
(2,791) |
dollar |
October 2018 |
329,500 | ||||||||
HSBC |
- |
(6,094) |
(6,094) |
(6,050) |
(44) |
dollar |
May 2021 |
59,032 | ||||||||
Bank of America Merrill Lynch |
- |
(5,407) |
(5,407) |
(6,021) |
614 |
dollar |
May 2021 |
59,032 | ||||||||
Citibank |
- |
(11,142) |
(11,142) |
(12,053) |
911 |
dollar |
May 2021 |
118,063 | ||||||||
343,092 |
(41,522) |
301,570 |
303,651 |
(2,081) |
||||||||||||
CPFL Piratininga |
||||||||||||||||
Citibank |
41,663 |
- |
41,663 |
43,051 |
(1,388) |
dollar |
March 2019 |
117,250 | ||||||||
HSBC |
24,417 |
- |
24,417 |
24,171 |
246 |
dollar |
April 2018 |
55,138 | ||||||||
J.P.Morgan |
24,438 |
- |
24,438 |
24,174 |
264 |
dollar |
April 2018 |
55,138 | ||||||||
Citibank |
25,972 |
- |
25,972 |
28,218 |
(2,245) |
dollar |
January 2020 |
169,838 | ||||||||
BNP Paribas |
21,280 |
- |
21,280 |
18,637 |
2,643 |
euro |
January 2018 |
175,714 | ||||||||
Scotiabank |
- |
(3,255) |
(3,255) |
(3,236) |
(19) |
dollar |
August 2017 |
55,440 | ||||||||
HSBC |
- |
(6,094) |
(6,094) |
(6,050) |
(44) |
dollar |
May 2021 |
59,032 | ||||||||
Bank of America Merrill Lynch |
- |
(7,857) |
(7,857) |
(9,020) |
1,163 |
dollar |
May 2021 |
88,548 | ||||||||
Citibank |
- |
(8,434) |
(8,434) |
(9,043) |
610 |
dollar |
May 2021 |
88,548 | ||||||||
137,771 |
(25,639) |
112,131 |
110,902 |
1,229 |
||||||||||||
CPFL Geração |
||||||||||||||||
HSBC |
89,986 |
- |
89,986 |
88,928 |
1,058 |
dollar |
March 2017 |
232,520 | ||||||||
Votorantim |
- |
(6,702) |
(6,702) |
(8,325) |
1,622 |
dollar |
June 2019 |
104,454 | ||||||||
Scotiabank |
- |
(5,788) |
(5,788) |
(5,598) |
(189) |
dollar |
July 2019 |
117,036 | ||||||||
Bradesco |
- |
(668) |
(668) |
(506) |
(162) |
dollar |
September 2019 |
32,636 | ||||||||
Citibank |
- |
(19,064) |
(19,064) |
(12,030) |
(7,034) |
dollar |
September 2019 |
397,320 | ||||||||
89,986 |
(32,222) |
57,764 |
62,468 |
(4,705) |
||||||||||||
RGE |
||||||||||||||||
Bank of Tokyo-Mitsubishi |
20,496 |
- |
20,496 |
20,946 |
(449) |
dollar |
April 2018 |
36,270 | ||||||||
Bank of Tokyo-Mitsubishi |
91,920 |
- |
91,920 |
93,951 |
(2,031) |
dollar |
May 2018 |
168,346 | ||||||||
HSBC |
10,714 |
- |
10,714 |
10,412 |
303 |
dollar |
October 2017 |
32,715 | ||||||||
J.P.Morgan |
22,750 |
- |
22,750 |
21,685 |
1,065 |
dollar |
February 2018 |
171,949 | ||||||||
HSBC |
- |
(6,094) |
(6,094) |
(6,050) |
(44) |
dollar |
May 2021 |
59,032 | ||||||||
Bank of America Merrill Lynch |
- |
(10,306) |
(10,306) |
(12,018) |
1,711 |
dollar |
May 2021 |
118,063 | ||||||||
Citibank |
- |
(5,726) |
(5,726) |
(6,034) |
308 |
dollar |
May 2021 |
59,032 | ||||||||
145,881 |
(22,127) |
123,754 |
122,891 |
863 |
||||||||||||
CPFL Jaguari |
||||||||||||||||
Scotiabank |
- |
(815) |
(815) |
(789) |
(27) |
dollar |
October 2016 |
16,484 | ||||||||
CPFL Sul Paulista |
||||||||||||||||
Scotiabank |
- |
(815) |
(815) |
(789) |
(27) |
dollar |
October 2016 |
16,484 | ||||||||
CPFL Leste Paulista |
||||||||||||||||
Scotiabank |
- |
(815) |
(815) |
(789) |
(27) |
dollar |
October 2016 |
16,484 | ||||||||
CPFL Santa Cruz |
||||||||||||||||
Scotiabank |
- |
(815) |
(815) |
(789) |
(27) |
dollar |
October 2016 |
16,484 | ||||||||
CPFL Serviços |
||||||||||||||||
J.P.Morgan |
2,851 |
- |
2,851 |
2,665 |
186 |
dollar |
October 2016 |
9,000 | ||||||||
CPFL Paulista Lajeado |
||||||||||||||||
Itaú |
- |
(28) |
(28) |
(87) |
59 |
dollar |
March 2018 |
35,000 | ||||||||
CPFL Brasil |
||||||||||||||||
Itaú |
- |
(2,562) |
(2,562) |
(2,634) |
71 |
dollar |
August 2018 |
45,360 | ||||||||
Subtotal (a) |
719,581 |
(127,362) |
592,219 |
596,703 |
(4,484) |
|||||||||||
Derivatives to hedge debts not designated at fair value |
||||||||||||||||
Exchange rate hedge |
||||||||||||||||
CPFL Geração |
||||||||||||||||
Votorantim |
- |
(1,293) |
(1,293) |
(322) |
(971) |
dollar |
December 2016 |
35,624 | ||||||||
Price index hedge |
||||||||||||||||
CPFL Geração |
||||||||||||||||
Santander |
- |
(397) |
(397) |
6,333 |
(6,730) |
IPCA |
April 2019 |
35,235 | ||||||||
J.P.Morgan |
- |
(397) |
(397) |
6,333 |
(6,730) |
IPCA |
April 2019 |
35,235 | ||||||||
- |
(794) |
(794) |
12,666 |
(13,460) |
||||||||||||
Interest rate hedge (1) |
||||||||||||||||
CPFL Paulista |
||||||||||||||||
Bank of America Merrill Lynch |
- |
(1,376) |
(1,376) |
(411) |
(965) |
CDI |
July 2019 |
660,000 | ||||||||
J.P.Morgan |
- |
(621) |
(621) |
(113) |
(509) |
CDI |
February 2021 |
300,000 | ||||||||
Votorantim |
- |
(189) |
(189) |
(36) |
(153) |
CDI |
February 2021 |
100,000 | ||||||||
Santander |
- |
(195) |
(195) |
(38) |
(157) |
CDI |
February 2021 |
105,000 | ||||||||
- |
(2,381) |
(2,381) |
(598) |
(1,784) |
||||||||||||
CPFL Piratininga |
||||||||||||||||
J.P.Morgan |
- |
(229) |
(229) |
(68) |
(161) |
CDI |
July 2019 |
110,000 | ||||||||
Votorantim |
- |
(210) |
(210) |
(46) |
(164) |
CDI |
February 2021 |
135,000 | ||||||||
Santander |
- |
(146) |
(146) |
(33) |
(113) |
CDI |
February 2021 |
100,000 | ||||||||
- |
(585) |
(585) |
(148) |
(437) |
||||||||||||
RGE |
||||||||||||||||
HSBC |
- |
(1,043) |
(1,043) |
(311) |
(731) |
CDI |
July 2019 |
500,000 | ||||||||
Votorantim |
- |
(373) |
(373) |
(65) |
(308) |
CDI |
February 2021 |
170,000 | ||||||||
- |
(1,415) |
(1,415) |
(376) |
(1,039) |
||||||||||||
CPFL Geração |
||||||||||||||||
Votorantim |
- |
(16) |
(16) |
(72) |
56 |
CDI |
August 2020 |
460,000 | ||||||||
|
|
|
|
|
||||||||||||
Subtotal (b) |
- |
(6,485) |
(6,485) |
11,150 |
(17,635) |
|||||||||||
Other derivatives (2) |
||||||||||||||||
CPFL Geração |
||||||||||||||||
Itaú |
19,692 |
- |
19,692 |
1,799 |
17,893 |
dollar |
September 2020 |
28,200 | ||||||||
Votorantim |
16,402 |
- |
16,402 |
1,485 |
14,918 |
dollar |
September 2020 |
28,200 | ||||||||
Santander |
20,624 |
- |
20,624 |
1,743 |
18,880 |
dollar |
September 2020 |
34,907 | ||||||||
Subtotal (c) |
56,718 |
- |
56,718 |
5,027 |
51,691 |
|||||||||||
Total (a+b+c) |
776,299 |
(133,847) |
642,453 |
612,880 |
29,572 |
|||||||||||
Current |
111,761 |
(4,548) |
||||||||||||||
Noncurrent |
664,538 |
(129,299) |
||||||||||||||
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) The notional for this type of derivative is disclosed in dollar, due its characteristics. |
84
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
As mentioned above, certain subsidiaries opted to mark to market debts for which they have fully tied derivative instruments (note 16).
The Company and its subsidiaries have recognized gains and losses on their derivatives. However, as these derivatives are used as a hedge, these gains and losses minimized the impact of variations in exchange and interest rates on the hedged debts. For the quarters and in the nine months ended September 30, 2016 and 2015, the derivatives resulted in the following impacts on the result, recognized in the line item of finance costs on adjustment for inflation and exchange rate changes:
Gain (loss) | ||||||||||
2016 |
2015 | |||||||||
Company |
Hedged risk / transaction |
3rd quarter |
Nine months |
3rd quarter |
Nine months | |||||
CPFL Energia |
Exchange variation |
(4,584) |
(76,202) |
96,465 |
121,429 | |||||
CPFL Energia |
Mark to Market |
49 |
2,319 |
(9,146) |
(8,623) | |||||
CPFL Paulista |
Interest rate variation |
(750) |
(736) |
(709) |
(1,490) | |||||
CPFL Paulista |
Exchange variation |
(72,032) |
(768,061) |
713,286 |
996,130 | |||||
CPFL Paulista |
Mark to Market |
42,902 |
105,083 |
(171,684) |
(141,996) | |||||
CPFL Piratininga |
Interest rate variation |
(208) |
(473) |
(196) |
(400) | |||||
CPFL Piratininga |
Exchange variation |
(28,481) |
(332,090) |
314,052 |
407,689 | |||||
CPFL Piratininga |
Mark to Market |
13,746 |
40,220 |
(90,072) |
(83,902) | |||||
RGE |
Interest rate variation |
(436) |
(432) |
(413) |
(876) | |||||
RGE |
Exchange variation |
(21,890) |
(243,907) |
270,021 |
372,953 | |||||
RGE |
Mark to Market |
8,410 |
43,334 |
(74,205) |
(69,467) | |||||
CPFL Geração |
Interest rate variation |
2,949 |
4,131 |
(190) |
2,118 | |||||
CPFL Geração |
Exchange variation |
(30,312) |
(118,427) |
110,962 |
155,796 | |||||
CPFL Geração |
Mark to Market |
(20,849) |
45,904 |
(27,957) |
(32,373) | |||||
CPFL Santa Cruz |
Exchange variation |
(789) |
(6,698) |
8,196 |
12,302 | |||||
CPFL Santa Cruz |
Mark to Market |
(94) |
201 |
(756) |
(549) | |||||
CPFL Leste Paulista |
Exchange variation |
(789) |
(789) |
(307) |
4,596 | |||||
CPFL Leste Paulista |
Mark to Market |
(27) |
(27) |
(10) |
(76) | |||||
CPFL Sul Paulista |
Exchange variation |
(789) |
(7,289) |
8,886 |
15,047 | |||||
CPFL Sul Paulista |
Mark to Market |
(66) |
223 |
(836) |
(598) | |||||
CPFL Jaguari |
Exchange variation |
(789) |
(9,948) |
12,544 |
20,341 | |||||
CPFL Jaguari |
Mark to Market |
(27) |
326 |
(1,177) |
(790) | |||||
CPFL Mococa |
Exchange variation |
- |
- |
(135) |
2,022 | |||||
CPFL Mococa |
Mark to Market |
- |
- |
(4) |
(33) | |||||
Paulista Lajeado Energia |
Exchange variation |
(1,288) |
(10,480) |
9,735 |
7,872 | |||||
Paulista Lajeado Energia |
Mark to Market |
479 |
1,734 |
(2,750) |
(3,092) | |||||
CPFL Telecom |
Exchange variation |
- |
- |
3,191 |
4,450 | |||||
CPFL Telecom |
Mark to Market |
- |
- |
(517) |
6 | |||||
CPFL Brasil |
Exchange variation |
(1,622) |
(13,084) |
9,493 |
9,493 | |||||
CPFL Brasil |
Mark to Market |
710 |
2,449 |
(4,176) |
(4,176) | |||||
CPFL Serviços |
Exchange variation |
(342) |
(3,327) |
3,456 |
4,856 | |||||
CPFL Serviços |
Mark to Market |
215 |
440 |
(525) |
(395) | |||||
(116,702) |
(1,345,605) |
1,174,523 |
1,788,264 |
b.1) Zero-cost collar derivative contracted by CPFL Geração
In 2015, subsidiary CPFL Geração contracted US$ denominated put and call options, involving the same financial institution as counterpart, and which on a combined basis are characterized as an operation usually known as zero-cost collar. The contracting of this operation does not involve any kind of speculation, inasmuch as it is aimed at minimizing any negative impacts on future revenues of the joint venture ENERCAN, which has electric energy sale agreements with annual restatement of part of the tariff based on the variation in the US$. In addition, according to Management’s view, the current scenario is favorable for contracting this type of financial instrument, considering the high volatility implicit in dollar options and the fact that there is no initial cost for same.
The total amount contracted was US$ 111,817, with due dates between October 1, 2015 and September 30, 2020. At September 30, 2016, the total amount contracted was US$ 91,308, considering the options already settled until this date. The exercise prices of the dollar options vary from R$ 4.20 to R$ 4.40 for the put options and from R$ 5.40 to R$7.50 for the call options.
85
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
These options have been measured at fair value in a recurring manner, as required by IAS 39/CPC 38. The fair value of the options that are part of this operation has been calculated based on the following premises:
Valuation technique(s) and key information |
We used the Black Scholes Option Pricing Model, which aims to obtain the fair price of the options involving the following variables: value of the asset, exercise price of the option, interest rate, term and volatility. |
Significant unobservable inputs |
Volatility determined based on the average market pricing calculations, future dollar and other variables applicable to this specific transaction, with average variation of 19.4%. |
Relationship between unobservable inputs and fair value (sensitivity) |
A slight rise in long-term volatility, analyzed on an isolated basis, would result in an insignificant increase in fair value. If the volatility were 10% higher and all the other variables remained constant, the net carrying amount (asset) would increase by R$ 790, resulting in a net asset of R$ 57,508. |
Measurement of the fair value of these financial instruments, in the amount of R$ 61,962, of which R$ 59,522 refers to the measurement of the asset instruments and R$ 2,440 to the measurement of liability instruments, has been recognized in the statement of profit or loss for the period in line item Finance income, with no recognition of any effects in Other comprehensive income.
The following table reconciles the opening and closing balances of the call and put options for the nine months ended September 30, 2016, as required by IFRS 13/CPC 46:
Consolidated | ||||||
Asset |
Liability |
Net | ||||
As of December 31, 2015 |
8,820 |
(2,440) |
6,380 | |||
Fair value |
59,522 |
2,440 |
61,962 | |||
Net cash recipient by repayment of flows |
(11,624) |
- |
(11,624) | |||
As of September 30, 2016 |
56,718 |
- |
56,718 |
c) Sensitivity analysis
In compliance with CVM Instruction No. 475/2008, the Company and its subsidiaries performed sensitivity analyses of the main risks to which their financial instruments (including derivatives) are exposed, mainly comprising variations in exchange and interest rates.
If the risk exposure is considered asset, the risk to be taken into account is a reduction in the pegged indexes, resulting in a negative impact on the results of the Company and its subsidiaries. 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 results. The Company and its subsidiaries 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) Exchange rate variation
Considering the level of net exchange rate exposure at September 30, 2016 is maintained, the simulation of the effects by type of financial instrument for three different scenarios would be:
86
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
Consolidated | ||||||||||
Exposure |
Increase (decrease) R$ thousand | |||||||||
Instruments |
Risk |
Currency depreciation (b) |
Currency appreciation of 25% (c) |
Currency appreciation of 50% (c) | ||||||
Financial liability instruments |
(5,040,062) |
(477,035) |
902,239 |
2,281,514 | ||||||
Derivatives - Plain Vanilla Swap |
5,200,392 |
492,210 |
(930,940) |
(2,354,091) | ||||||
160,330 |
drop of the dollar |
15,175 |
(28,701) |
(72,577) | ||||||
Financial liability instruments |
(272,255) |
(28,802) |
46,462 |
121,727 | ||||||
Derivatives - Plain Vanilla Swap |
277,248 |
29,330 |
(47,314) |
(123,959) | ||||||
4,993 |
drop of the euro |
528 |
(852) |
(2,232) | ||||||
Total |
165,323 |
15,703 |
(29,553) |
(74,809) | ||||||
Increase (decrease) US$ thousand | ||||||||||
Instruments |
Exposure |
Risk |
Currency depreciation (b) |
Currency depreciation of 25% (c) |
Currency depreciation of 50% (c) | |||||
Derivatives - zero-cost collar |
91,308 |
(d) |
raise of the dollar |
(66,089) |
(93,184) |
(120,279) |
(a) The exchange rates considered as of September 30, 2016 were R$ 3.22 per US$ 1.00 and R$ 3.63 per € 1.00.
(b) As per the exchange curves obtained from information made available by the BM&FBOVESPA, with the exchange rate being considered at R$ 3.53 and R$ 4.01, and exchange depreciation at 9.46% and 10.58%, for the US$ and €, respectively.
(c) As required by CVM Instruction No. 475/2008, the percentage increases in the ratios applied refer to the information made available by the BM&FBOVESPA.
(d) Owing to the characteristics of this derivative (zero-cost collar), the notional amount is presented in US$.
Based on the net exchange exposure in US$ and in € being an asset, the risk is a drop in the dollar and in €, therefore, the local exchange rate is appreciated by 25% and 50% in relation to the probable exchange rate.
c.2) Interest rate variation
Assuming that (i) the scenario of net exposure of the financial instruments indexed to variable interest rates at September 30, 2016 is maintained, and (ii) the respective accumulated annual indexes for the next 12 months remain stable (CDI 14.13% p.a.; IGP-M 10.66% p.a.; TJLP 7.50% p.a.; IPCA 8.48% p.a.; and SELIC 14.15% p.a.), the effects for the next 12 months would be a net finance cost of R$ 1,088,205 (expenses of CDI R$ 1,017,779, IGP-M R$ 7,478, TJLP R$ 345,474 and SELIC R$ 61,540 and income of IPCA R$ 344,066). In the event of fluctuations in the indexes in accordance with the three scenarios described below, the effect on net finance cost would as follows:
Consolidated | ||||||||||
Raise (drop) | ||||||||||
Instruments |
Exposure |
Risk |
Scenario I (a) |
Raising/Dropping index by 25% (b) |
Raising/Dropping index by 50% (b) | |||||
Financial asset instruments |
5,993,071 |
(104,279) |
81,356 |
266,991 | ||||||
Financial liability instruments |
(8,230,245) |
143,206 |
(111,726) |
(366,657) | ||||||
Derivatives - Plain Vanilla Swap |
(4,965,789) |
86,405 |
(67,411) |
(221,226) | ||||||
(7,202,963) |
raise of the CDI |
125,332 |
(97,781) |
(320,892) | ||||||
Financial liability instruments |
(70,154) |
4,602 |
3,883 |
3,164 | ||||||
(70,154) |
raise of the IGP-M |
4,602 |
3,883 |
3,164 | ||||||
Financial liability instruments |
(4,606,322) |
- |
(86,369) |
(172,737) | ||||||
(4,606,322) |
raise of the TJLP |
- |
(86,369) |
(172,737) | ||||||
Financial liability instruments |
(87,287) |
2,872 |
4,004 |
5,137 | ||||||
Derivatives - Plain Vanilla Swap |
73,884 |
(2,431) |
(3,389) |
(4,348) | ||||||
Concession financial asset - distribution |
4,070,793 |
(133,929) |
(186,748) |
(239,566) | ||||||
4,057,390 |
drop of the IPCA |
(133,488) |
(186,133) |
(238,777) | ||||||
Sector financial asset and liability |
(434,916) |
raise of the SELIC |
7,220 |
(6,361) |
(19,941) | |||||
Total |
(8,256,964) |
3,666 |
(372,761) |
(749,183) | ||||||
(a) The CDI, IGP-M, TJLP, IPCA and SELIC indexes considered of 12.39%, 4.10%, 7.50%, 5.19% and 12.49%, respectively, were obtained from information available in the market. | ||||||||||
(b) In compliance with CVM Instruction 475/08, the percentages of increase in indexes were applied to Scenario I indexes. |
||||||||||
87
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Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
( 34 ) NON-CASH TRANSACTION
|
Parent company |
|
Consolidated | ||||
|
September 30, 2016 |
December 31, 2015 |
|
September 30, 2016 |
December 31, 2015 | ||
Other transactions |
|
|
|
|
|
|
|
Capital increase in investees with advance for future capital increase |
52,680 |
|
55,157 |
|
- |
|
- |
Interest capitalized in property, plant and equipment |
- |
|
- |
|
43,568 |
|
20,416 |
Interest capitalized in concession intangible asset - distribution infrastructure |
- |
|
- |
|
8,864 |
|
8,373 |
Transfer between property, plant and equipment and other assets |
- |
|
- |
|
12,791 |
|
9,724 |
( 35 ) RELEVANT FACT AND EVENT AFTER THE REPORTING PERIOD
35.1. Business combination - acquisition of AES Sul Distribuidora Gaúcha de Energia S.A. (“AES Sul”).
On July 16, 2016, the Company advised in a Relevant Fact that it had signed an agreement to acquire all the shares issued by AES Sul Distribuidora Gaúcha de Energia S.A. (“AES Sul”) through its fully-owned subsidiary CPFL Jaguariúna Ltda., previously held by AES Guaíba II Empreendimentos Ltda. ("seller"), a fully-owned indirect subsidiary of The AES Corporation.
The transaction was approved by the Administrative Council for Economic Defense - CADE and ANEEL's authorization was obtained on September 9, 2016.
The acquisition was completed on October 31, 2016 ("acquisition date"), after all the prior conditions had been met, and the Company assumed the control of AES Sul on the same date.
The corporate objective of AES Sul is to provide all forms of public electric energy distribution services, activities regulated by the National Electric Energy Agency ("ANEEL"), linked to the Mines and Energy Ministry. AES Sul is also authorized to participate in programs to promote other forms of energy, technology and services, including the operation of activities directly or indirectly derived from the use of its own assets, rights and technologies.
Its administrative headquarters are located at Rua Dona Laura, 320 – 6th and 10th floors, Rio Branco, Porto Alegre, State of Rio Grande do Sul, Brazil.
AES Sul holds the concession to operate for a 30-year period, to November 5, 2027.
The Company's concession area covers 118 municipalities of the State of Rio Grande do Sul, located between the metropolitan area of Porto Alegre and the frontiers with Uruguay and Argentina, and serves approximately 1.3 million consumers (information not reviewed by the independent auditors).
The acquisition of AES Sul is in line with the Company's expansion strategy, particularly in the Distribution segment, and involves potential gains of scale for its operations. The Company also anticipates significant sinergy in relation to AES Sul's concession area, as another of the Group's major distributors also holds a concession in the State of Rio Grande do Sul.
A consideration of R$ 1,698,455 was transferred in cash, in a single installment, on the acquisition date, The consideration will be adjusted, within 45 (forty-five) days of the acquisition date, in accordance with the changes in working capital and net indebtedness of AES Sul in the period between December 31, 2015 and the acquisition date.
The agreement includes no clause in relation to the contingent consideration to be paid to the seller. The agreement also provides for compensation to CPFL Jaguariúna in certain cases, up to a maximum of 15% of the total amount paid, if it should suffer losses in the future arising from contingencies initiated in the seller or in any of its subsidiaries in connection with compliance with specific clauses of the agreement.
88
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
The initial accounting is not available at the date of publication of these interim financial statements, as the exact amounts to be considered will be known on the transaction acquisition date, ie. October 31, 2016. The exact amounts to be allocated to the assets and liabilities acquired are not presented in these interim financial statements.
The exact amounts to be allocated to the assets and liabilities acquired will be drawn up by independent assessors, who will issue an economic and financial assessment. Management anticipates that the report will be finalized by October 2017.
Accordingly, no adjustment to the fair values of assets and liabilities was recognized in the reporting period for these interim financial statements.
35.2. Share acquisition of the Company by State Grid International Development
In a Relevant Fact issued to the market on July 1, 2016, the Company disclosed that its controlling shareholder, Camargo Corrêa S.A. (“CCSA”) had informed it about a proposal received from State Grid International Development Limited. ("purchaser") for the acquisition of its share interest tied to the Company's controlling block. On September 2, 2016, the Company received a letter from CCSA confirming that the acquisition agreement had been signed.
A total of 234,086,204 of the Company's shares, currently held by ESC Energia S.A., a CCSA subsidiary, would be acquired; the shares are tied to the Shareholders' Agreement and represent approximately 23% of the CPFL Energia’s capital. The purchase price is R$ 25.00 per Company share, subject to adjustments foreseen in the transaction documents. CCSA was advised that for purposes of the transaction, the buyer attributed a value of R$ 12.20 per share to the CPFL Renováveis shares held directly or indirectly by the company.
The 30-day term for the other signatories of the Agreement to exercise their preemptive rights to buy all the shares covered by the transaction, or opt to participate in the transaction and, together with CCSA, dispose of all their shares in the Company tied to the Shareholders' Agreement, at the same price and under the same conditions offered to CCSA by the purchaser, commenced on the date on which the agreement was signed.
On September 23, 2016, in a Relevant Fact, the Company disclosed that it had been advised, in a letter from Previ, that Previ was exercising the right to joint sale foreseen in the Agreement, in order to dispose, together with ESC Energia S.A. and CCSA, of its total share interest tied to the Agreement, amounting to 196,276,558 common shares, or 19.28% of the Company's total capital.
On September 28, 2016, in a Relevant Fact, the Company disclosed that it had been advised, in a letter from Energia São Paulo Fundo de Investimento em Ações (“Energia SP FIA”), that it was exercising the right to joint sale foreseen in the Agreement, in order to dispose, together with ESC Energia S.A. and CCSA, of its total share interest of 112,196,990 tied shares and 2,813,417 common shares not tied to the Agreement.
Closing of the transaction will be subject to compliance with the customary prior conditions in this type of operation, including authorization from ANEEL. The Administrative Council for Economic Defense – CADE gave its consent on September 22, 2016. Accordingly, the transaction causes no impact on the Company's share structure as of September 30, 2016.
89
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
35.3. Debentures
35.3.1. CPFL Renováveis
On September 15, 2016, a meeting of the subsidiary's Board of Directors approved the 4th issue of ordinary unsecured debentures, not convertible into shares, in two series. The issue comprises 40 debentures, 20 in the first and 20 in the second series, with a unit face value of R$ 10,000, amounting to a total of R$ 400,000.
The first series was issued on September 28, 2016 and the amount of R$ 200,000 was received on October 4, 2016; the issue date of the second series will be decided and ratified in due course by a rider to the deed of issue.
The debentures will have a validity term of five years from the issue date and will be covered by a guarantee to be provided by the Company. The funds raised will be used for working capital and other normal Company activities.
35.3.2. CPFL Geração
On September 23, 2016, a meeting of the Board of Directors approved the ninth issue, by the subsidiary CPFL Geração, of 50,000 ordinary debentures, not convertible into shares, in a single unsecured series, with a value of R$ 50,000. The debenture issue date will be October 17, 2016 and the funds will be used to further the Morro Agudo Substation investment project; they will be covered by a fidejussory guarantee issued by the Company.
The debentures mature on October 17, 2021, in a single installment, subject to the possibility of early redemption.
35.3.3. CPFL Energia
On October 10, 2016, a meeting of the Board of Directors approved the fifth issue, by the Company, of 62,000 ordinary debentures, not convertible into shares, in a single unsecured series, with a unit value of R$ 10 and a total value of R$ 620,000. The debenture issue date will be October 20, 2016 and the funds will be used for the acquisition of AES Sul.
The debentures mature on October 20, 2020, in a single installment, subject to the possibility of early redemption.
35.3.4. CPFL Brasil
On October 11, 2016, an Extraordinary General Meeting of the subsidiary approved the third issue of 40,000 ordinary debentures, not convertible into shares, in a single unsecured series, with a unit value of R$ 10 and a total value of R$ 400,000. The debenture issue date will be October 20, 2016 and the funds will be used for the acquisition of AES Sul.
The debentures mature on October 20, 2020, in a single installment, subject to the possibility of early redemption. The debentures will have an additional fidejussory guarantee in the form of a surety to be provided by the Company.
35.4. Annual Tariff Adjustment – CPFL Piratininga
On 18 October, 2016, ANEEL approved the 2016 annual tariff review - RTA of the subsidiary CPFL Piratininga. Tariffs were increased by an average of -12.54%, of which -5.35% relates to the economic increase and -7.19% to the financial components, in relation to the latest ordinary tariff event (RTP/2015). An average effect of -24.21% (as disclosed in the Ratification Resolution) will be perceived by consumers, in comparison with the RTP of October 2015. The new tariffs will apply from October 23, 2016 to October 22, 2017.
90
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - 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, 2016:
Shareholders |
Common shares |
Interest - % | ||
ESC Energia S.A. |
234,086,204 |
23.00 | ||
BB Carteira Livre I FIA |
73,008,816 |
7.17 | ||
Bonaire Participações S.A. |
1,259,386 |
0.12 | ||
Energia São Paulo FIA |
150,146,050 |
14.75 | ||
Caixa de Previdência dos Funcionários do Banco do Brasil - Previ |
226,778,743 |
22.28 | ||
Camargo Correa S.A. |
5,897,311 |
0.58 | ||
Fundação Petrobras de Seguridade Social - Petros |
1,861,658 |
0.18 | ||
BNDES Participações S.A. |
68,592,097 |
6.74 | ||
Brumado Holdings Ltda. (*) |
36,497,075 |
3.59 | ||
Antares Holdings Ltda. (*) |
16,967,165 |
1.67 | ||
Other shareholders |
202,820,241 |
19.93 | ||
Total |
1,017,914,746 |
100.00 |
(*) Entities fully controlled by Bradespar S.A., which indirectly holds 5.25% of total shares common shares of CPFL Energia.
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, 2016 and December 31, 2015:
September 30, 2016 |
December 31, 2015 | |||||||
Shareholders |
Common shares |
Interest - % |
Common shares |
Interest - % | ||||
Controlling shareholders |
693,038,168 |
68.09 |
676,084,869 |
68.08 | ||||
Administrator |
- |
- |
- |
- | ||||
Members of the Executive Officers |
34,250 |
- |
105,672 |
0.01 | ||||
Members of the Board of Directors |
- |
- |
- |
- | ||||
Fiscal Council Members |
- |
- |
- |
- | ||||
Other shareholders |
324,842,328 |
31.91 |
316,823,674 |
31.91 | ||||
Total |
1,017,914,746 |
100.00 |
993,014,215 |
100.00 | ||||
Outstanding shares - free float |
324,842,328 |
31.91 |
316,823,674 |
31.91 |
91
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
|
SHAREHOLDING STRUCTURE |
Nine months of 2016 | |||||||||
|
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 |
|
693,038,168 |
68.08% |
100.00% |
- |
0.00% |
0.00% |
693,038,168 |
68.08% |
|
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% |
July 15, 2016 |
1.2 |
Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I |
73.899.742/0001-74 |
73,008,816 |
7.17% |
100.00% |
- |
0.00% |
0.00% |
73,008,816 |
7.17% |
September 16, 2016 |
1.3 |
Bonaire Participações S.A. |
33.754.482/0001-24 |
1,259,386 |
0.12% |
100.00% |
- |
0.00% |
0.00% |
1,259,386 |
0.12% |
September 19, 2016 |
1.4 |
Energia São Paulo FIA |
02.178.371/0001-93 |
150,146,050 |
14.75% |
100.00% |
- |
0.00% |
0.00% |
150,146,050 |
14.75% |
September 19, 2016 |
1.5 |
Caixa de Previdência dos Funcionários do Banco do Brasil - Previ |
33.754.482/0001-24 |
226,778,743 |
22.28% |
100.00% |
- |
0.00% |
0.00% |
226,778,743 |
22.28% |
September 16, 2016 |
1.6 |
Camargo Correa S.A. |
01.098.905/0001-09 |
5,897,311 |
0.58% |
100.00% |
- |
0.00% |
0.00% |
5,897,311 |
0.58% |
July 15, 2016 |
1.7 |
Fundação Petrobras de Seguridade Social - Petros |
34.053.942/0001-50 |
1,861,658 |
0.18% |
100.00% |
- |
0.00% |
0.00% |
1,861,658 |
0.18% |
July 31, 2016 |
|
Noncontrolling shareholders |
|
324,876,578 |
31.92% |
100.00% |
- |
0.00% |
0.00% |
324,876,578 |
31.92% |
|
1.8 |
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 |
1.9 |
Brumado Holdings Ltda. |
08.397.763/0001-20 |
36,497,075 |
3.59% |
100.00% |
- |
0.00% |
0.00% |
36,497,075 |
3.59% |
April 29, 2016 |
1.10 |
Antares Holdings Ltda. |
07.341.926/001-90 |
16,967,165 |
1.67% |
100.00% |
- |
0.00% |
0.00% |
16,967,165 |
1.67% |
April 29, 2016 |
1.11 |
Board of Directors |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
April 29, 2016 |
1.12 |
Executive officers |
|
34,250 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
34,250 |
0.00% |
July 31, 2016 |
1.13 |
Other shareholders |
|
202,785,991 |
19.92% |
100.00% |
- |
0.00% |
0.00% |
202,785,991 |
19.92% |
|
|
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 |
VBC Energia S.A. |
00.095.147/0001-02 |
260,598,154 |
25.60% |
100.00% |
- |
0.00% |
0.00% |
260,598,154 |
25.60% |
June 30, 2016 |
1.1.2 |
Camargo Corrêa S.A. |
01.098.905/0001-09 |
781,794,461 |
76.80% |
100.00% |
- |
0.00% |
0.00% |
781,794,461 |
76.80% |
June 30, 2016 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.1.3 |
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: 1.1.1 VBC ENERGIA S/A |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
2,953,689 |
100.00% |
97.91% |
62,981 |
100.00% |
2.09% |
3,016,670 |
100.00% |
|
1.1.1.1 |
Camargo Corrêa Investimento em Infra-Estrutura S.A. |
02.372.232/0001-04 |
2,434,624 |
0.24% |
98.11% |
47,018 |
0.00% |
1.89% |
2,481,642 |
0.24% |
June 2, 2016 |
1.1.1.2 |
Camargo Corrêa S.A. |
01.098.905/0001-09 |
519,065 |
0.05% |
97.02% |
15,963 |
0.00% |
2.98% |
535,028 |
0.05% |
June 30, 2016 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.1.1.3 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
2,953,689 |
100.00% |
97.91% |
62,981 |
100.00% |
2.09% |
3,016,670 |
100.00% |
|
|
4 - Entity: 1.1.2 Camargo Corrêa S.A. |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
48,943 |
99.99% |
34.46% |
93,099 |
100.00% |
65.54% |
142,042 |
100.00% |
|
1.1.2.1 |
Participações Morro Vermelho S.A. |
03.987.192/0001-60 |
48,943 |
0.00% |
34.46% |
93,099 |
0.00% |
65.54% |
142,042 |
0.01% |
April 30, 2012 |
|
Noncontrolling shareholders |
|
3 |
0.01% |
75.00% |
1 |
0.00% |
25.00% |
4 |
0.00% |
|
1.1.2.2 |
Other shareholders |
|
3 |
0.00% |
75.00% |
1 |
0.00% |
25.00% |
4 |
0.00% |
|
|
Total |
|
48,946 |
100.00% |
34.46% |
93,100 |
100.00% |
65.54% |
142,046 |
100.00% |
|
|
5 - Entity: 1.1.3 Camargo Corrêa Investimento em Infra-Estrutura S.A. |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
1,058,326,175 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,058,326,175 |
100.00% |
|
1.1.3.1 |
Camargo Corrêa S.A. |
01.098.905/0001-09 |
1,058,326,175 |
103.97% |
100.00% |
- |
0.00% |
0.00% |
1,058,326,175 |
103.97% |
April 28, 2016 |
|
Noncontrolling shareholders |
|
3 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
3 |
0.00% |
|
1.1.3.2 |
Other shareholders |
|
3 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
3 |
0.00% |
|
|
Total |
|
1,058,326,178 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,058,326,178 |
100.00% |
|
|
6 - Entity: 1.1.2.1 Participações Morro Vermelho S.A. |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
2,250,000 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
2,250,000 |
33.33% |
|
1.1.2.1 |
RCABON Empreendimentos e Participações S.A |
09.594.448/0001-55 |
750,000 |
0.07% |
100.00% |
- |
0.00% |
0.00% |
750,000 |
0.07% |
April 30, 2015 |
1.1.2.1.2 |
RCNON Empreendimentos e Participações S.A |
09.594.570/0001-21 |
750,000 |
0.07% |
100.00% |
- |
0.00% |
0.00% |
750,000 |
0.07% |
April 30, 2015 |
1.1.2.1.3 |
RCPODON Empreendimentos e Participações S.A |
09.594.541/0001-60 |
750,000 |
0.07% |
100.00% |
- |
0.00% |
0.00% |
750,000 |
0.07% |
April 30, 2015 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
4,500,000 |
100.00% |
100.00% |
4,500,000 |
66.67% |
|
1.1.2.1.4 |
RCABPN Empreendimentos e Participações S.A |
09.594.459/0001-35 |
- |
0.00% |
0.00% |
1,498,080 |
0.00% |
100.00% |
1,498,080 |
0.15% |
October 1, 2008 |
1.1.2.1.5 |
RCNPN Empreendimentos e Participações S.A |
09.594.480/0001-30 |
- |
0.00% |
0.00% |
1,498,080 |
0.00% |
100.00% |
1,498,080 |
0.15% |
October 1, 2008 |
1.1.2.1.6 |
RCPODPN Empreendimentos e Participações S.A |
09.594.468/0001-26 |
- |
0.00% |
0.00% |
1,498,080 |
0.00% |
100.00% |
1,498,080 |
0.15% |
October 1, 2008 |
1.1.2.1.7 |
RRRPN Empreendimentos e Participações S.A |
09.608.284/0001-78 |
- |
0.00% |
0.00% |
5,760 |
0.00% |
100.00% |
5,760 |
0.00% |
October 1, 2008 |
1.1.2.1.8 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
2,250,000 |
100.00% |
33.33% |
4,500,000 |
100.00% |
66.67% |
6,750,000 |
100.00% |
|
|
7 - Entity: 1.1.2.1.1 RCABON Empreendimentos e Participações S.A |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
749,850 |
100.00% |
99.99% |
90 |
60.00% |
0.01% |
749,940 |
99.99% |
|
1.1.2.1.1.1 |
Rosana Camargo de Arruda Botelho |
535.804.358-68 |
749,850 |
0.07% |
99.99% |
90 |
0.00% |
0.01% |
749,940 |
0.07% |
December 6, 2012 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
60 |
40.00% |
100.00% |
60 |
0.01% |
|
1.1.2.1.1.2 |
Other shareholders |
|
- |
0.00% |
0.00% |
60 |
0.00% |
100.00% |
60 |
0.00% |
|
|
Total |
|
749,850 |
100.00% |
99.98% |
150 |
100.00% |
0.02% |
750,000 |
100.00% |
|
|
8 - Entity: 1.1.2.1.2 RCNON Empreendimentos e Participações S.A |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
749,850 |
100.00% |
99.99% |
40 |
26.67% |
0.01% |
749,890 |
99.99% |
|
1.1.2.1.2.1 |
Renata de Camargo Nascimento |
535.804.608-97 |
749,850 |
0.07% |
99.99% |
40 |
0.00% |
0.01% |
749,890 |
0.07% |
October 1, 2008 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
110 |
73.33% |
100.00% |
110 |
0.01% |
|
1.1.2.1.2.2 |
Other shareholders |
|
- |
0.00% |
0.00% |
110 |
0.00% |
100.00% |
110 |
0.00% |
|
|
Total |
|
749,850 |
100.00% |
99.98% |
150 |
100.00% |
0.02% |
750,000 |
100.00% |
|
|
9 - Entity: 1.1.2.1.3 RCPODON Empreendimentos e Participações S.A |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
749,850 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
749,850 |
99.98% |
|
1.1.2.1.3.1 |
Regina de Camargo Pires Oliveira Dias |
153.204.398-81 |
749,850 |
0.07% |
100.00% |
- |
0.00% |
0.00% |
749,850 |
0.07% |
October 1, 2008 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
150 |
100.00% |
100.00% |
150 |
0.02% |
|
1.1.2.1.3.2 |
Other shareholders |
|
- |
0.00% |
0.00% |
150 |
0.00% |
100.00% |
150 |
0.00% |
|
|
Total |
|
749,850 |
100.00% |
99.98% |
150 |
100.00% |
0.02% |
750,000 |
100.00% |
|
(continue) |
92
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
|
10 - Entity: 1.1.2.1.4 RCABPN Empreendimentos e Participações S.A |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
1,499,940 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,499,940 |
100.00% |
|
1.1.2.1.4.1 |
Rosana Camargo de Arruda Botelho |
535.804.358-68 |
1,499,940 |
0.15% |
100.00% |
- |
0.00% |
0.00% |
1,499,940 |
0.15% |
December 6, 2012 |
|
Noncontrolling shareholders |
|
60 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
60 |
0.00% |
|
1.1.2.1.4.2 |
Other shareholders |
|
60 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
60 |
0.00% |
|
|
Total |
|
1,500,000 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,500,000 |
100.00% |
|
|
11 - Entity: 1.1.2.1.5 RCNPN Empreendimentos e Participações S.A |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
1,499,890 |
99.99% |
100.00% |
- |
0.00% |
0.00% |
1,499,890 |
99.99% |
|
1.1.2.1.5.1 |
Renata de Camargo Nascimento |
535.804.608-97 |
1,499,890 |
0.15% |
100.00% |
- |
0.00% |
0.00% |
1,499,890 |
0.15% |
October 1, 2008 |
|
Noncontrolling shareholders |
|
110 |
0.01% |
100.00% |
- |
0.00% |
0.00% |
110 |
0.01% |
|
1.1.2.1.5.2 |
Other shareholders |
|
110 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
110 |
0.00% |
|
|
Total |
|
1,500,000 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,500,000 |
100.00% |
|
|
12 - Entity: 1.1.2.1.6 RCPODPN Empreendimentos e Participações S.A |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
1,499,850 |
99.99% |
100.00% |
- |
0.00% |
0.00% |
1,499,850 |
99.99% |
|
1.1.2.1.6.1 |
Regina de Camargo Pires Oliveira Dias |
153.204.398-81 |
1,499,850 |
0.15% |
100.00% |
- |
0.00% |
0.00% |
1,499,850 |
0.15% |
October 1, 2008 |
|
Noncontrolling shareholders |
|
150 |
0.01% |
100.00% |
- |
0.00% |
0.00% |
150 |
0.01% |
|
1.1.2.1.6.2 |
Other shareholders |
|
150 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
150 |
0.00% |
|
|
Total |
|
1,500,000 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
1,500,000 |
100.00% |
|
|
13 - Entity: 1.1.2.1.7 RRRPN Empreendimentos e Participações S.A |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
5,940 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
5,940 |
100.00% |
|
1.1.2.1.7.1 |
Rosana Camargo de Arruda Botelho |
535.804.358-68 |
1,980 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
1,980 |
0.00% |
October 1, 2008 |
1.1.2.1.7.2 |
Renata de Camargo Nascimento |
535.804.608-97 |
1,980 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
1,980 |
0.00% |
October 1, 2008 |
1.1.2.1.7.3 |
Regina de Camargo Pires Oliveira Dias |
153.204.398-81 |
1,980 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
1,980 |
0.00% |
October 1, 2008 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.1.2.1.7.4 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
5,940 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
5,940 |
100.00% |
|
|
14 - Entity: 1.2 Fundo Mútuo de Investimentos em Ações - BB Carteira Livre I |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
130,163,541 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
130,163,541 |
100.00% |
|
1.2.1 |
Caixa de Previdência dos Funcionários do Banco do Brasil - PREVI |
33.754.482/0001-24 |
130,163,541 |
12.79% |
100.00% |
- |
0.00% |
0.00% |
130,163,541 |
12.79% |
November 3, 2009 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.2.2 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
130,163,541 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
130,163,541 |
100.00% |
|
|
15 - Entity: 1.3 Bonaire Participações S.A. |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
66,728,877 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
66,728,877 |
100.00% |
|
1.3.1 |
Energia São Paulo Fundo de Investimento em Ações |
02.178.371/0001-93 |
66,728,877 |
6.56% |
100.00% |
- |
0.00% |
0.00% |
66,728,877 |
6.56% |
July 21, 2014 |
|
Noncontrolling shareholders |
|
1 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
0.00% |
|
1.3.2 |
Other shareholders |
|
1 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
0.00% |
|
|
Total |
|
66,728,878 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
66,728,878 |
100.00% |
|
|
16 - Entity: 1.4 Energia São Paulo Fundo de Investimento em Ações |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
796,479,768 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
796,479,768 |
100.00% |
|
1.4.1 |
Fundos de Investimento em Cotas de Fundo de Investimento em Participações 114 |
07.792.436/0001-00 |
353,528,507 |
34.73% |
100.00% |
- |
0.00% |
0.00% |
353,528,507 |
34.73% |
November 16, 2004 |
1.4.2 |
Fundação Petrobras de Seguridade Social - Petros |
34.053.942/0001-50 |
181,405,069 |
17.82% |
100.00% |
- |
0.00% |
0.00% |
181,405,069 |
17.82% |
November 16, 2004 |
1.4.3 |
Fundação Sabesp de Seguridade Social - Sabesprev |
65.471.914/0001-86 |
4,823,881 |
0.47% |
100.00% |
- |
0.00% |
0.00% |
4,823,881 |
0.47% |
November 16, 2004 |
1.4.4 |
Fundação Sistel de Seguridade Social |
00.493.916/0001-20 |
256,722,311 |
25.22% |
100.00% |
- |
0.00% |
0.00% |
256,722,311 |
25.22% |
November 16, 2004 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.4.5 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
796,479,768 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
796,479,768 |
100.00% |
|
|
17 - Entity: 1.4.1 Fundos de Investimento em Cotas de Fundo de Investimento em Participações 114 |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
5,459,656 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
5,459,656 |
100.00% |
|
1.4.1 |
Fundação CESP |
62.465.117/0001-06 |
5,459,656 |
0.54% |
100.00% |
- |
0.00% |
0.00% |
5,459,656 |
0.54% |
November 16, 2004 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.4.1 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
5,459,656 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
5,459,656 |
100.00% |
|
|
18 - Entity: 1.8 BNDES Participações S.A. |
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% |
|
1.8.1 |
Banco Nacional de Desenvolvimento Econômico e Social |
33.657.248/0001-89 |
1 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
0.00% |
September 4, 1974 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.8.2 |
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% |
|
|
19 - Entity: 1.8.1 Banco Nacional de Desenvolvimento Econômico e Social |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
6,273,711,452 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
6,273,711,452 |
100.00% |
|
1.8.1 |
Federal Government (Department of Treasury) |
00.394.460/0409-50 |
6,273,711,452 |
616.33% |
100.00% |
- |
0.00% |
0.00% |
6,273,711,452 |
616.33% |
September 28, 2012 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.8.1 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
6,273,711,452 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
6,273,711,452 |
100.00% |
|
|
20 - Entity: 1.9 Brumado Holdings Ltda. |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
983,227,791 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
983,227,791 |
100.00% |
|
1.9.1 |
Antares Holdings Ltda. |
07.341.926/0001-90 |
983,227,791 |
96.59% |
100.00% |
- |
0.00% |
0.00% |
983,227,791 |
96.59% |
April 30, 2015 |
1.9.2 |
Bradespar S.A. |
03.847.461/0001-92 |
1 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
0.00% |
April 30, 2015 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.9.3 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
983,227,791 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
983,227,791 |
100.00% |
|
|
21 - Entity: 1.10 Antares Holdings Ltda. |
CNPJ or CPF |
Quotes/common shares |
% |
% Total |
Preferred shares |
% |
% Total |
TOTAL |
% Total |
|
|
Controlling shareholders |
|
326,999,999 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
326,999,999 |
100.00% |
|
1.10.1 |
Bradespar S.A. |
03.847.461/0001-92 |
326,999,999 |
32.12% |
100.00% |
- |
0.00% |
0.00% |
326,999,999 |
32.12% |
April 30, 2015 |
1.10.2 |
NCF Participações S.A. |
04.233.319/0001-18 |
1 |
0.00% |
100.00% |
- |
0.00% |
0.00% |
1 |
0.00% |
April 30, 2015 |
|
Noncontrolling shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
1.10.3 |
Other shareholders |
|
- |
0.00% |
0.00% |
- |
0.00% |
0.00% |
- |
0.00% |
|
|
Total |
|
326,999,999 |
100.00% |
100.00% |
- |
0.00% |
0.00% |
326,999,999 |
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.
93
(Free Translation of the original in Portuguese)
Standard Interim Financial Statements – ITR – Date: September 30, 2016 - CPFL Energia S. A
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION
To the Board of Directors and Shareholders of
CPFL Energia S.A.
São Paulo - SP
Introduction
We have reviewed the individual and consolidated interim financial information of CPFL Energia S.A. (“CPFL Energia” or “Company”), included in the Interim Financial Information Form - ITR, for the quarter ended in September 30, 2016, which comprises the balance sheet as of September 30, 2016 and the related statements of income, comprehensive income for the three-month and nine-month periods then ended and changes in shareholders' equity and cash flows for the nine-month periods then ended, including the explanatory notes.
Management is responsible for the preparation of these individual and consolidated interim financial information in accordance with technical pronouncement CPC 21 (R1) - Interim Financial Reporting and in accordance with the international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, and their presentation in accordance with the standards issued by the Brazilian Securities and Exchange Commission (“CVM”) applicable to the preparation of Interim Financial Information - ITR. Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and international standards on review of interim financial information (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with standards on auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the ITR referred to above is not prepared, in all material respects, in accordance with technical pronouncement CPC 21 (R1) and IAS 34 applicable to the preparation of Interim Financial Information - ITR and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission (“CVM”).
Other matters
Statements of value added
We have also reviewed the individual and consolidated statements of value added (“DVA”) for the nine-month ended in September 30, 2016, prepared under Management's responsibility, the presentation of which is required by the standards issued by the Brazilian Securities and Exchange Commission (“CVM”) applicable to the preparation of Interim Financial Information - ITR and is considered as supplemental information for IFRSs that do not require the presentation of DVA. These statements were subject to the same review procedures described above and, based on our review, nothing has come to our attention that causes us to believe that there are not fairly presented, in all material respects, in relation to the individual and consolidated interim financial information taken as a whole.
Campinas, November 7, 2016
DELOITTE TOUCHE TOHMATSU | Marcelo Magalhães Fernandes |
Auditores Independentes | Engagement Partner |
94 |
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.