Telefonica Brasil S.A. Files 20-F for Fiscal Year 2023

TL;DR

<b>Telefonica Brasil S.A. has submitted its 2023 annual report on Form 20-F, detailing its financial performance and operations.</b>

AI Summary

TELEFONICA BRASIL S.A. (VIV) filed a Foreign Annual Report (20-F) with the SEC on February 22, 2024. Telefonica Brasil S.A. filed its annual report on Form 20-F for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located in Sao Paulo, Brazil. Telefonica Brasil S.A. was formerly known as Telesp Participacoes SA and Telesp Holding Co. The filing is made under the Securities Exchange Act of 1934.

Why It Matters

For investors and stakeholders tracking TELEFONICA BRASIL S.A., this filing contains several important signals. This 20-F filing provides a comprehensive overview of Telefonica Brasil S.A.'s financial health and strategic direction for the fiscal year 2023, crucial for investors assessing the company's performance and outlook. As a significant player in the Brazilian telecommunications market, this filing offers insights into the company's operational results, regulatory compliance, and future plans, which can impact its market position and shareholder value.

Risk Assessment

Risk Level: — TELEFONICA BRASIL S.A. shows moderate risk based on this filing. The company operates in a highly regulated industry and faces competition, which could impact its financial performance and market share.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 20-F filing to understand Telefonica Brasil S.A.'s performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Period of Report End Date (Conformed Period of Report)
• 2024-02-22 — Filing Date (Filed As Of Date)
• 2023-01-01 — Period of Report Start Date (2023 FY)

Key Players & Entities

• TELEFONICA BRASIL S.A. (company) — Filer
• VIV (company) — Ticker Symbol
• SAO PAULO-SP (location) — Business Address City
• 04571-936 (location) — Business Address Zip
• TELESP HOLDING CO (company) — Former Company Name
• TELESP PARTICIPACOES SA (company) — Former Company Name

FAQ

Industry Context

Telefonica Brasil S.A. operates within the telecommunications sector, a dynamic industry characterized by rapid technological advancements and evolving consumer demands.

Regulatory Implications

The telecommunications industry is subject to significant regulatory oversight concerning service provision, pricing, and competition, which can influence operational strategies and financial outcomes.

What Investors Should Do

1. Review the detailed financial statements and management's discussion and analysis in the 20-F filing to understand Telefonica Brasil S.A.'s financial performance for 2023.
2. Analyze the risk factors section to identify potential challenges and uncertainties that could affect the company's future operations and profitability.
3. Compare the 2023 results with previous years' filings to assess trends in revenue, expenses, and other key financial metrics.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year 2023, providing updated financial and operational information compared to previous filings.

Filing Documents

• viv-20231231.htm (20-F) — 7075KB
• exhibit11-bylaws.htm (EX-1.1) — 104KB
• exhibit22-telefonicabrasil.htm (EX-2.2) — 201KB
• exhibit81-telefonicabrasil.htm (EX-8.1) — 11KB
• exhibit121-telefonicabrasi.htm (EX-12.1) — 11KB
• exhibit122-telefonicabrasi.htm (EX-12.2) — 11KB
• exhibit131-telefonicabrasi.htm (EX-13.1) — 5KB
• exhibit132-telefonicabrasi.htm (EX-13.2) — 5KB
• exhibit971-cbpolicytelefni.htm (EX-97.1) — 49KB
• image_0a.jpg (GRAPHIC) — 7KB
• viv-20231231_g1.jpg (GRAPHIC) — 1286KB
• 0001628280-24-006357.txt (&nbsp;) — 35383KB
• viv-20231231.xsd (EX-101.SCH) — 349KB
• viv-20231231_cal.xml (EX-101.CAL) — 159KB
• viv-20231231_def.xml (EX-101.DEF) — 1252KB
• viv-20231231_lab.xml (EX-101.LAB) — 2388KB
• viv-20231231_pre.xml (EX-101.PRE) — 1668KB
• viv-20231231_htm.xml (XML) — 6421KB

Item 18

Item 17 Item 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No TABLE OF CONTENTS Page Introduction ii Glossary of Telecommunication Term s v Cautionary Statement Regarding Forward-Looking Statements viii Presentation of Financial Information x Part I 1 Item 1. Identity of Directors, Senior Management and Advisers 1 Item 2. Offer Statistics and Expected Timetable 1 Item 3. Key Information 1 Item 4. Information on the Company 24 Item 4A. Unresolved Staff Comments 79 Item 5. Operating and Financial Review and Prospects 79 Item 6. Directors, Senior Management and Employees 94 Item 7. Major Shareholders and Related Party Transactions 107 Item 8. Financial Information 110 Item 9. The Offer and Listing 122 Item 10. Additional Information 126 Item 11.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 157 Item 12.

Description of Securities Other Than Equity Securities

Description of Securities Other Than Equity Securities 158 Part II 160 Item 13. Defaults, Dividend Arrearages and Delinquencies 160 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 160 Item 15.

Controls and Procedures

Controls and Procedures 160 Item 16. [Reserved] 162 Item 16a. Audit Committee Financial Expert 162 Item 16b. Code of Ethics 162 Item 16c. Principal Accountant Fees and Services 163 Item 16d. Exemptions From the Listing Standards for Audit Committees Procedures 164 Item 16e. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 164 Item 16f. Change in Registrant's Certifying Accountant 166 Item 16g. Corporate Governance 166 Item 16h. Mine Safety Disclosure 171 Item 16i. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 172 I tem 16j. I nsider Trading Policies 172 I tem 16k. C yber security 172 Part III 176 Item 17.

Financial Statements

Financial Statements 176 Item 18.

Financial Statements

Financial Statements 176 Item 19. Exhibits 176

Signatures

Signatures 179 i Table of Content s INTRODUCTION References in this annual report to "Telefnica Brasil," "we," "our," "us," "our company" and "the company" are to Telefnica Brasil S.A. and its consolidated subsidiaries (unless the context otherwise requires). All references in this annual report to: "ADRs" are to the American Depositary Receipts evidencing our ADSs; "ADSs" are to our American Depositary Shares, each representing one of our common shares; "ANATEL" are to Agncia Nacional de Telecomunicaes , the Brazilian telecommunications regulatory agency; "B3" are to B3 S.A. – Brasil, Bolsa, Balco , the So Paulo stock exchange and a Brazil-based financial market infrastructure provider; "BNDES" are to Banco Nacional de Desenvolvimento Econmico e Social , the Brazilian Development Bank; "Brazil" are to the Federative Republic of Brazil; "Brazilian Corporate Law" are to Law No. 6,404 of December 15, 1976, as amended; "CADE" are to Conselho Administrativo de Defesa Econmica , the Brazilian competition authority; "CDI" are to Certificado de Depsito Interbancrio , the Certificate for Interbank Deposits; "Central Bank" are to the Banco Central do Brasil , the Brazilian Central Bank; "Claro" are to Claro S.A. and its affiliates, a telecommunications service provider in Brazil and our competitor; "CMN" are to the Conselho Monetrio Nacional , the Brazilian Monetary Council; "common shares" are to the common shares of Telefnica Brasil; "COPOM" are to the Monetary Policy Committee of the Central Bank (Comit de Poltica Monetria do Banco Central do Brasil ); "CTBC Telecom" are to Companhia de Telecomunicaes do Brasil Central ; "CVM" are to the Comisso de Valores Mobilirios , the Brazilian Securities Commission; "Federal District" are to Distrito Federal , the federal district where Brasilia, the capital of Brazil, is located; "FGV" are to the Fundao Getlio Vargas , a private higher education institution; "General Telecommunications Law" are to Law No.

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers Not applicable.

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable Not applicable.

Key Information

Item 3. Key Information A. [Reserved.] B. Capitalization and Indebtedness Not applicable. C. Reasons for the Offer and Use of Proceeds Not applicable. D. Risk Factors This section is intended to be a summary of more detailed discussions contained elsewhere in this annual report. You should carefully read and consider the following risks, along with the other information included in this annual report. The risks described below are not the only ones we face. Additional risks that we do not presently consider material, or of which we are not currently aware, may also affect us. Our business, results of operations or financial condition could be impacted if any of these risks materialize and, as a result, the market price of our common shares and our ADSs could be affected. The risks described below are organized by risk category and these categories are not presented in order of importance. However, within each category, the risk factors are presented in descending order of importance, as determined by us as of the date of this annual report. We may change our vision about their relative importance at any time, especially if new internal or external events arise. Summary of Risk Factors Summary of Risks Relating to Brazil The Brazilian government has exercised, and continues to exercise, significant influence over the Brazilian economy. This influence, as well as Brazilian political and economic conditions, could adversely affect us and the trading price of our common shares and ADSs. Political instability may materially adversely affect the Brazilian economy, our business, and the market price of our common shares and ADSs. Inflation and government efforts to curb inflation may contribute to economic uncertainty in Brazil, adversely affecting our business and results of operations. Fluctuations in exchange rates may adversely affect our ability to meet liabilities denominated or linked to foreign currencies or reduce our income in foreign currency, a

View Full Filing

View this 20-F filing on SEC EDGAR