(Mark One) | ||
o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
OR | ||
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, | |
OR | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ | |
OR | ||
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Name of each exchange on which registered | |
Ordinary Shares, nominal value American Depositary Shares, each representing one Ordinary Share | New York Stock Exchange New York Stock Exchange |
Guarantees** by Telefónica, S.A. of the | ; and of the $1,250,000,000 Fixed Rate Guaranteed Senior Notes Due 2030 of Telefónica Europe, B.V. | New York Stock Exchange |
* | Not for trading, but only in connection with the listing of American Depositary Shares, pursuant to the requirements of the New York Stock Exchange. |
** | Not for trading, but only in connection with the listing of the |
U.S. GAAP oInternational Financial Reporting Standards as Issued by the international Accounting Standards Board x Other o |
· | the effect on our results of operations of competition in telecommunications markets; |
· | trends affecting our business financial condition, |
· | acquisitions, investments or |
· | our capital expenditures plan; |
· | our estimated availability of funds; |
· | our ability to repay debt with estimated future cash flows; |
· | our shareholder remuneration policies; |
· | supervision and regulation of the telecommunications sectors where we have significant operations; |
· | our strategic partnerships; and |
· | the potential for growth and competition in current and anticipated areas of our business. |
· | changes in general economic, business or political conditions in the domestic or international markets in which we operate or have material investments that may affect demand for our services; |
· |
· | existing or worsening conditions in the international financial markets; |
· | the impact of current, pending or future legislation and regulation in countries where we operate, as well as any failure to renew or obtain the necessary licenses, authorizations and concessions to carry out our operations and the impact of limitations in spectrum capacity; |
· | compliance with anti-corruption laws and regulations and economic sanctions programs; |
· | customers’ perceptions of services offered by us; |
· | the actions of existing and potential competitors in each of our markets as well as the potential effects of technological changes; |
· | failure of suppliers to provide necessary equipment and services on a timely basis; |
· | the impact of unanticipated network |
· | the effect of reports suggesting that |
· | the impact of impairment charges on our goodwill and assets as a result of changes in the regulatory, business or political environment; |
· | potential liability resulting from our internet access and hosting services arising from illegal or illicit use of the internet, including the inappropriate dissemination or modification of consumer data; and |
· | the outcome of pending |
Item 1. | Identity of Directors, Senior Management and Advisors |
Offer Statistics and Expected Timetable |
Key Information |
As of or for the year ended December 31, | ||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | ||||||||||||||||
(in millions of euro, except share and per share data) | ||||||||||||||||||||
Revenues | 56,441 | 57,946 | 56,731 | 60,737 | 62,837 | |||||||||||||||
Other income | 4,264 | 1,865 | 1,645 | 5,869 | 2,107 | |||||||||||||||
Supplies | (17,907 | ) | (17,818 | ) | (16,717 | ) | (17,606 | ) | (18,256 | ) | ||||||||||
Personnel expenses | (7,893 | ) | (6,762 | ) | (6,775 | ) | (8,409 | ) | (11,080 | ) | ||||||||||
Other expenses | (12,081 | ) | (12,312 | ) | (12,281 | ) | (14,814 | ) | (15,398 | ) | ||||||||||
Depreciation and amortization | (9,436 | ) | (9,046 | ) | (8,956 | ) | (9,303 | ) | (10,146 | ) | ||||||||||
Operating income | 13,388 | 13,873 | 13,647 | 16,474 | 10,064 | |||||||||||||||
Share of profit (loss) of associates | 140 | (161 | ) | 47 | 76 | (635 | ) | |||||||||||||
Net finance expense | (2,851 | ) | (2,821 | ) | (2,767 | ) | (2,537 | ) | (2,782 | ) | ||||||||||
Net exchange differences | 7 | 24 | (540 | ) | (112 | ) | (159 | ) | ||||||||||||
Net financial expense | (2,844 | ) | (2,797 | ) | (3,307 | ) | (2,649 | ) | (2,941 | ) | ||||||||||
Profit before tax from continuing operations | 10,684 | 10,915 | 10,387 | 13,901 | 6,488 | |||||||||||||||
Corporate income tax | (1,565 | ) | (3,089 | ) | (2,450 | ) | (3,829 | ) | (301 | ) | ||||||||||
Profit for the year from continuing operations | 9,119 | 7,826 | 7,937 | 10,072 | 6,187 | |||||||||||||||
Profit after taxes from discontinued operations | — | — | — | — | — | |||||||||||||||
Profit for the year | 9,119 | 7,826 | 7,937 | 10,072 | 6,187 | |||||||||||||||
Non-controlling interests | (213 | ) | (234 | ) | (161 | ) | 95 | (784 | ) | |||||||||||
Profit for the year attributable to equity holders of the parent | 8,906 | 7,592 | 7,776 | 10,167 | 5,403 | |||||||||||||||
Weighted average number of shares (thousands) | 4,758,707 | 4,645,852 | 4,552,656 | 4,522,228 | 4,511,165 | |||||||||||||||
Basic and diluted earnings per share from continuing operations attributable to equity holders (euro)(1) | 1.87 | 1.63 | 1.71 | 2.25 | 1.20 | |||||||||||||||
Basic and diluted earnings per share attributable to equity holders of the parent (euro)(1) | 1.87 | 1.63 | 1.71 | 2.25 | 1.20 | |||||||||||||||
Earnings per ADS (euro)(1)(2) | 1.87 | 1.63 | 1.71 | 2.25 | 1.20 | |||||||||||||||
Weighted average number of ADS (thousands)(2) | 4,758,707 | 4,645,852 | 4,552,656 | 4,522,228 | 4,511,165 | |||||||||||||||
Cash dividends per ordinary share (euro) | 0.65 | 0.90 | 1.00 | 1.30 | 1.52 | |||||||||||||||
Consolidated Statement of Financial Position Data | ||||||||||||||||||||
Cash and cash equivalents | 5,065 | 4,277 | 9,113 | 4,220 | 4,135 | |||||||||||||||
Property, plant and equipment | 32,460 | 30,545 | 31,999 | 35,797 | 35,463 | |||||||||||||||
Total assets | 105,873 | 99,896 | 108,141 | 129,775 | 129,623 | |||||||||||||||
Non-current liabilities | 58,044 | 55,202 | 56,931 | 64,599 | 69,662 | |||||||||||||||
Equity (net) | 22,855 | 19,562 | 24,274 | 31,684 | 27,383 | |||||||||||||||
Capital stock | 4,773 | 4,705 | 4,564 | 4,564 | 4,564 | |||||||||||||||
Consolidated Cash Flow Data | ||||||||||||||||||||
Net cash from operating activities | 15,551 | 16,366 | 16,148 | 16,672 | 17,483 | |||||||||||||||
Net cash used in investing activities | (4,592 | ) | (9,101 | ) | (9,300 | ) | (15,861 | ) | (12,497 | ) | ||||||||||
Net cash used in financing activities | (9,425 | ) | (7,765 | ) | (2,281 | ) | (5,248 | ) | (4,912 | ) |
Millions of euros | 2010 | 2011 | 2012 | 2013 | 2014 |
Revenues | 60,737 | 62,837 | 62,356 | 57,061 | 50,377 |
Other income | 5,869 | 2,107 | 2,323 | 1,693 | 1,707 |
Supplies | (17,606) | (18,256) | (18,074) | (17,041) | (15,182) |
Personnel expenses | (8,409) | (11,080) | (8,569) | (7,208) | (7,098) |
Other expenses | (14,814) | (15,398) | (16,805) | (15,428) | (14,289) |
Depreciation and amortization | (9,303) | (10,146) | (10,433) | (9,627) | (8,548) |
OPERATING INCOME | 16,474 | 10,064 | 10,798 | 9,450 | 6,967 |
Share of (loss) profit of associates | 76 | (635) | (1,275) | (304) | (510) |
Net finance expense | (2,537) | (2,782) | (3,062) | (2,696) | (2,519) |
Net exchange differences | (112) | (159) | (597) | (170) | (303) |
Net financial expense | (2,649) | (2,941) | (3,659) | (2,866) | (2,822) |
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 13,901 | 6,488 | 5,864 | 6,280 | 3,635 |
Corporate income tax | (3,829) | (301) | (1,461) | (1,311) | (383) |
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS | 10,072 | 6,187 | 4,403 | 4,969 | 3,252 |
Profit after taxes from discontinued operations | − | − | − | − | − |
PROFIT FOR THE YEAR | 10,072 | 6,187 | 4,403 | 4,969 | 3,252 |
Non-controlling interests | 95 | (784) | (475) | (376) | (251) |
PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 10,167 | 5,403 | 3,928 | 4,593 | 3,001 |
Weighted average number of shares (thousands)(1) | 4,705,217 | 4,693,707 | 4,603,539 | 4,627,912 | 4,606,389 |
Basic and diluted earnings per share from continuing operations attributable to equity holders of the parent (euro)(1) | 2.16 | 1.15 | 0.85 | 0.99 | 0.61 |
Basic and diluted earnings per share attributable to equity holders of the parent (euro)(1) | 2.16 | 1.15 | 0.85 | 0.99 | 0.61 |
Earnings per ADS (euro)(1)(2) | 2.16 | 1.15 | 0.85 | 0.99 | 0.61 |
Weighted average number of ADS (thousands)(1)(2) | 4,705,217 | 4,693,707 | 4,603,539 | 4,627,912 | 4,606,389 |
Cash dividends per ordinary share (euro) | 1.30 | 1.52 | 0.82 | 0.35 | 0.75 |
Consolidated Statement of Financial Position Data | |||||
Cash and cash equivalents | 4,220 | 4,135 | 9,847 | 9,977 | 6,529 |
Property, plant and equipment | 35,802 | 35,469 | 35,021 | 31,040 | 33,343 |
Total assets | 129,775 | 129,623 | 129,773 | 118,862 | 122,299 |
Non-current liabilities | 64,599 | 69,662 | 70,601 | 62,236 | 62,311 |
Equity (net) | 31,684 | 27,383 | 27,661 | 27,482 | 30,289 |
Capital stock | 4,564 | 4,564 | 4,551 | 4,551 | 4,657 |
Consolidated Cash Flow Data | |||||
Net cash from operating activities | 16,672 | 17,483 | 15,213 | 14,344 | 12,193 |
Net cash used in investing activities | (15,861) | (12,497) | (7,877) | (9,900) | (9,968) |
Net cash used in financing activities | (5,248) | (4,912) | (1,243) | (2,685) | (4,041) |
(1) | The per share and per ADS computations for all periods presented have been presented using the weighted average number of shares and ADSs, respectively, outstanding for each period, and have been adjusted to reflect the stock dividends which occurred during the periods presented, as if these had occurred at the beginning of the earliest period |
(2) | Until January 20, 2011, each ADS represented the right to receive three ordinary shares. Since January 21, 2011, each ADS represents the right to receive one ordinary share. The above figures have been restated accordingly. Figures do not include any charges of the ADS Depositary. |
Noon Buying Rate | ||||||||||||||||
Year ended December 31, | Period end | Average (1) | High | Low | ||||||||||||
2007 | 1.4603 | 1.3797 | 1.4862 | 1.2904 | ||||||||||||
2008 | 1.3919 | 1.4698 | 1.6010 | 1.2446 | ||||||||||||
2009 | 1.4332 | 1.3955 | 1.5100 | 1.2547 | ||||||||||||
2010 | 1.3269 | 1.3261 | 1.4536 | 1.1959 | ||||||||||||
2011 | 1.2973 | 1.4002 | 1.3875 | 1.2926 | ||||||||||||
2012 (through March 23, 2012) | 1.3263 | 1.3105 | 1.3463 | 1.2682 |
Noon Buying Rate | ||||
Year ended December 31, | Period end | Average (1) | High | Low |
2010 | 1.3269 | 1.3218 | 1.4536 | 1.1959 |
2011 | 1.2973 | 1.4002 | 1.4875 | 1.2926 |
2012 | 1.3186 | 1.2909 | 1.3463 | 1.2062 |
2013 | 1.3779 | 1.3303 | 1.3816 | 1.2774 |
2014 | 1.2101 | 1.3155 | 1.3816 | 1.2447 |
2015 (through February 20, 2015) | 1.1372 | 1.1516 | 1.2015 | 1.1279 |
(1) | The average of the Noon Buying Rates for the euro on the last day reported of each month during the relevant period. |
Noon Buying Rate | ||||||||
Month ended | High | Low | ||||||
September 30, 2011 | 1.4283 | 1.3446 | ||||||
October 31, 2011 | 1.4172 | 1.3281 | ||||||
November 30, 2011 | 1.3803 | 1.3244 | ||||||
December 31, 2011 | 1.3487 | 1.2926 | ||||||
January 31, 2012 | 1.3192 | 1.2682 | ||||||
February 29, 2012 | 1.3463 | 1.3087 | ||||||
March 31, 2012 (through March 23, 2012) | 1.3320 | 1.3025 |
Noon Buying Rate | ||
Month ended | High | Low |
August 31, 2014 | 1.3436 | 1.3150 |
September 30, 2014 | 1.3136 | 1.2628 |
October 31, 2014 | 1.2812 | 1.2517 |
November 30, 2014 | 1.2554 | 1.2394 |
December 31, 2014 | 1.2504 | 1.2101 |
January 31, 2015 | 1.2015 | 1.1279 |
February 28, 2015 (through February 20, 2015) | 1.1462 | 1.1300 |
· | government regulation or administrative |
· | abrupt exchange-rate fluctuations may occur mainly due to high levels of inflation and both fiscal and external deficits with the resulting exchange-rate overvaluation. This movement could lead to strong exchange-rate depreciation in the context of a floating exchange rate regime, a significant devaluation off the back of abandoning fixed exchange rates regimes or the introduction of varying degrees of restrictions on capital movement. For example, in Venezuela, the official U.S. dollar to bolívar fuerte exchange rate is established by the Central Bank of Venezuela and the Minister of Finance, with an alternative market for attracting foreign currency through the Complementary System for Administration of Foreign Currency (Sistema Complementario de Administración de Divisas or “SICAD”) regular and selective auctions. In February 2015, a new Exchange Rate Agreement was established, including the regulations for the Foreign Exchange Marginal System (SIMADI), and the Central Bank of Venezuela published on February 18, 2015 a weighted average exchange rate equal to 172.1 bolívares to the U.S. dollar for the markets referred to in chapters II and IV of such Exchange Rate Agreement. Additionally, the acquisition or use of foreign currencies by Venezuelan or Argentinean companies (in some cases) to pay foreign debt or dividends is subject to the pre-authorization of the relevant authorities. Also, the Argentinean peso, despite its recent stability, continues to be under the threat of a sustained accelerated depreciation |
· | governments may expropriate or nationalize assets, make adverse tax decisions or increase their participation in the economy and in companies; |
· | economic-financial downturns, political instability and civil disturbances may negatively affect the Telefónica Group’s operations in such countries; and |
· |
· | Peru:The government announced plans to auction the 700 MHz spectrum band in the first half of 2015 (three blocks of 2x15 MHz have been defined). |
· | Costa Rica: Costa Rica’s government has communicated its intention to auction spectrum in the 1800 MHz and AWS bands during 2015. |
· | Mexico: The Federal Institute of Telecommunications (Instituto Federal de Telecomunicaciones) (“IFT”) published its Annual Program for Frequency Use and Development 2015. The program specifies IFT’s intention to award Advanced Wireless Services “AWS” concessions during the course of 2015. |
Information on the Company |
· | a diversified telecommunications group which provides a comprehensive range of services through one of the world’s largest and most modern telecommunications networks; |
· | focused on providing telecommunications services; and |
· | present principally in Europe and Latin America. |
· | On |
- | A decrease in |
- | As part of the decrease mentioned in the preceding paragraph, the value in euros of the net financial assets denominated in bolívares decreased by approximately 2,700 million euros, as per the balance as of December 31, 2014. |
- | The results from the Telefónica’s subsidiaries in Venezuela have been translated at the new exchange rate. This implied a reduction in operating income before depreciation and amortization (OIBDA) and profit of the year of, approximately, 1,730 and 660 million euros, respectively. |
· | On January 28, 2014, after obtaining the relevant regulatory approval, the sale of Telefónica Czech Republic, a.s. ("Telefónica Czech Republic") was completed. As a result of the sale, Telefónica held a 4.9% stake in Telefónica Czech Republic, which it subsequently sold in October 2014 for 160 million euros. |
· | On |
· | On February 27, 2014, the Board of Directors of Telefónica agreed to determine the amount of the 2014 dividend at 0.75 euro per share, payable in two tranches: |
· | On May 6, 2014, Telefónica submitted a |
· | On May 7, 2014, Telefónica paid a dividend of 0.40 euro per share in cash (dividend distribution charged against 2014 net income) corresponding to the second tranche of the 2013 dividend which |
· | On May 30, 2014, Telefónica's Annual General Shareholders' Meeting took place on second call with the attendance, present or represented, of 54.81% of the share capital. In this meeting, all the resolutions submitted by the Board of Directors for deliberation and approval were approved by majority of votes. |
· | On June 2, 2014, Telefónica's subsidiary Telefónica de Contenidos, S.A.U. ("Telefónica Contenidos") executed a share purchase agreement with PRISA in connection with PRISA’s stake in DTS. The price agreed amounts to 750 million euros, subject to customary adjustments at closing. The closing of this purchase agreement is subject to obtaining the relevant authorization of the competition authorities and to the approval of a representative panel of the banks financing PRISA. |
· | On July 2, 2014, Telefónica Deutschland received the EU Commission's conditional clearance to acquire the E-Plus Group from the Dutch telecommunication corporation Koninklijke KPN N.V. In connection with such |
· | On July 4, 2014, Telefónica de Contenidos acquired 22% of the share capital of DTS owned by Mediaset España Comunicación, S.A. ("Mediaset") for consideration of 295 million euros. |
· | On July 7, 2014, Telefónica reached an agreement with Reti Televisive Italiane S.p.A. ("RTI") for the acquisition by Telefónica of an 11.11% stake of the capital of a newly created company, which will consolidate the Pay-TV business of the Mediaset Group in Italy, currently commercialized under the name of "Mediaset Premium". The purchase price is 100 million euros. |
· | On July |
· | On September |
· | On September 30, 2014, Telefónica |
· | On October 10, 2014, the |
· | The free-of-charge allotment rights derived from the capital increase were allotted to Telefónica |
· | On October 27, 2014, following a report of the Nominating, Compensation and Corporate Governance Committee, the Board of Directors of Telefónica approved, with regard to the first cycle (2014-2017) of the long-term incentive plan (which consists in the granting of shares of Telefónica to Telefónica Group executives (including executive directors of Telefónica) as approved by the Annual General Shareholders Meeting held on May 30, 2014, (which determined the maximum possible number of shares to be received by the executive directors of Telefónica at the end of the first cycle of the plan)), the amount of theoretical shares to be assigned to the other executives, and the maximum possible number of shares to be received by them, in the event of fulfilment of the relevant co-investment requirement, and of the achievement of the maximum total shareholder return (TSR) established in the plan. |
· | On November 10, 2014, Telefónica, through its 100% subsidiary, Telefónica Internacional, S.A.U., sold 597,844,100 shares of China Unicom (Hong Kong) Limited ("China Unicom") as further described under "—Strategic Partnerships—China United Network Communications Group Co., Ltd. (China Unicom)", below. |
· | On December 9, 2014, the Company announced that, on December 3, 2014, the free-of-charge allotment rights trading period for the free-of-charge capital increase related to Telefónica’s Flexible Dividend had ended. The holders of 15.8% of the free-of-charge allotment rights accepted the purchase commitment assumed by Telefónica, S.A. The gross amount paid by Telefónica, S.A. for these rights amounted to 241,542,822.19 euros. The company waived the rights thus acquired, which were amortized. |
(1) | Ownership in Telefónica Móviles España, S.A.U. is held directly by Telefónica, S.A. |
(2) | Representing a 91.76% |
(3) | Ownership in Telefónica International Wholesale Services, S.L. is held 92.51% by Telefónica, S.A. and 7.49% by Telefónica Datacorp, S.A.U. |
(4) |
Companies held indirectly. |
Ownership in TIWS II is held directly by Telefónica, S.A. |
· | coordinate the Group’s activities; |
· | allocate resources efficiently among the Group; |
· | provide managerial guidelines for the Group; |
· | manage the Group’s portfolio of businesses; |
· | foster cohesion within the Group; and |
· | foster synergies among the Group’s subsidiaries. |
· | On January 23, 2015 Telefónica and Hutchison Whampoa Group agreed to enter into exclusive negotiations for the potential acquisition by the latter of Telefonica UK limited (Telefónica’s business in the UK (“O2 UK”)) for an indicative price in cash (firm value) of 10.25 billion pounds (approximately 13.5 billion euros); composed of (i) an initial amount of 9.25 billion pounds (approximately 12.2 billion euros) which would be paid at closing and (ii) an additional deferred payment of 1.0 billion pounds (approximately 1.3 billion euros) to be paid once the cumulative cash flow of the combined company in the United Kingdom has reached an agreed threshold. |
· |
· |
o |
o |
o |
o | Capture the opportunity in the business segment. |
· |
o |
o |
o |
o | Reduce legacy cost, especially legacy network costs. |
· | the effect of exchange rates and |
· |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 40,606.0 | 41,355.7 | 40,119.20 | 1.8 | % | (3.0 | )% | |||||||||||||
Internet and data accesses | 15,082.5 | 18,611.4 | 19,134.2 | 23.4 | % | 2.8 | % | |||||||||||||
Narrowband accesses | 1,427.5 | 1,314.1 | 909.2 | (7.9 | )% | (30.8 | )% | |||||||||||||
Broadband accesses(2) | 13,492.6 | 17,129.6 | 18,066.3 | 27.0 | % | 5.5 | % | |||||||||||||
Other accesses(3) | 162.4 | 167.8 | 158.7 | 3.3 | % | (5.4 | )% | |||||||||||||
Mobile accesses | 202,332.5 | 220,240.5 | 238,748.6 | 8.9 | % | 8.4 | % | |||||||||||||
Pre-pay accesses | 142,806.6 | 151,273.9 | 162,246.9 | 5.9 | % | 7.3 | % | |||||||||||||
Contract accesses | 59,525.9 | 68,966.6 | 76,501.7 | 15.9 | % | 10.9 | % | |||||||||||||
Pay TV accesses(4) | 2,489.2 | 2,787.4 | 3,309.9 | 12.0 | % | 18.7 | % | |||||||||||||
Final clients accesses | 260,510.2 | 282,994.9 | 301,311.8 | 8.6 | % | 6.5 | % | |||||||||||||
Unbundled local loop accesses | 2,206.0 | 2,529.2 | 2,928.7 | 14.7 | % | 15.8 | % | |||||||||||||
Shared UL accesses | 447.7 | 264.0 | 205.0 | (41.0 | )% | (22.3 | )% | |||||||||||||
Full UL accesses | 1,758.3 | 2,265.3 | 2,723.7 | 28.8 | % | 20.2 | % | |||||||||||||
Wholesale ADSL accesses(5) | 463.4 | 687.4 | 849.3 | 48.3 | % | 23.6 | % | |||||||||||||
Other accesses(6) | 1,426.0 | 1,420.7 | 1,518.0 | (0.4 | )% | 6.8 | % | |||||||||||||
Wholesale accesses | 4,095.3 | 4,637.4 | 5,296.0 | 13.2 | % | 14.2 | % | |||||||||||||
Total accesses | 264,605.5 | 287,632.3 | 306,607.8 | 8.7 | % | 6.6 | % |
Year ended December 31 | Percent Change | |||||||||||||||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||||||||||||||
Total | % of revenues | Total | % of revenues | Total | % of revenues | Total | % | Total | % | |||||||||||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Revenues | 56,731 | 100.0 | % | 60,737 | 100.0 | % | 62,837 | 100.0 | % | 4,006 | 7.1 | % | 2,100 | 3.5 | % | |||||||||||||||||||||||||
Other income | 1,645 | 2.9 | % | 5,869 | 9.7 | % | 2,107 | 3.4 | % | 4,224 | 256.7 | % | (3,762 | ) | (64.1 | )% | ||||||||||||||||||||||||
Supplies | (16,717 | ) | (29.5 | )% | (17,606 | ) | (29.0 | )% | (18,256 | ) | (29.1 | )% | (889 | ) | 5.3 | % | (650 | ) | 3.7 | % | ||||||||||||||||||||
Personnel expenses | (6,775 | ) | (11.9 | )% | (8,409 | ) | (13.8 | )% | (11,080 | ) | (17.6 | )% | (1,633 | ) | 24.1 | % | (2,671 | ) | 31.8 | % | ||||||||||||||||||||
Other expenses | (12,281 | ) | (21.6 | )% | (14,814 | ) | (24.4 | )% | (15,398 | ) | (24.5 | )% | (2,532 | ) | 20.6 | % | (585 | ) | 3.9 | % |
Operating income before depreciation and amortization (OIBDA)(1) | 22,603 | 39.8 | % | 25,777 | 42.4 | % | 20,210 | 32.2 | % | 3,175 | 14.0 | % | (5,567 | ) | (21.6 | )% | ||||||||||||||||||||||||
Depreciation and amortization | (8,956 | ) | (15.8 | )% | (9,303 | ) | (15.3 | )% | (10,146 | ) | (16.1 | )% | (347 | ) | 3.9 | % | (843 | ) | 9.1 | % | ||||||||||||||||||||
Operating income | 13,647 | 24.1 | % | 16,474 | 27.1 | % | 10,064 | 16.0 | % | 2,827 | 20.7 | % | (6,410 | ) | (38.9 | )% | ||||||||||||||||||||||||
Share of profit (loss) of associates | 47 | 0.1 | % | 76 | 0.1 | % | (635 | ) | (1.0 | )% | 28 | 59.8 | % | (711 | ) | (940.3 | )% | |||||||||||||||||||||||
Net financial expense | (3,307 | ) | (5.8 | )% | (2,649 | ) | (4.4 | )% | (2,941 | ) | (4.7 | )% | 658 | (19.9 | )% | (292 | ) | 11.0 | % | |||||||||||||||||||||
Corporate income tax | (2,450 | ) | (4.3 | )% | (3,829 | ) | (6.3 | )% | (301 | ) | (0.5 | )% | (1,378 | ) | 56.2 | % | 3,527 | (92.1 | )% | |||||||||||||||||||||
Profit for the year from continuing operations | 7,937 | 14.0 | % | 10,072 | 16.6 | % | 6,187 | 9.8 | % | 2,135 | 26.9 | % | (3,885 | ) | (38.6 | )% | ||||||||||||||||||||||||
Profit after taxes from discontinued operations | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Profit for the year | 7,937 | 14.0 | % | 10,072 | 16.6 | % | 6,187 | 9.8 | % | 2,135 | 26.9 | % | (3,885 | ) | (38.6 | )% | ||||||||||||||||||||||||
Non-controlling interests | (161 | ) | (0.3 | )% | 95 | 0.2 | % | (784 | ) | (1.2 | )% | 256 | (158.9 | )% | (879 | ) | (925.5 | )% | ||||||||||||||||||||||
Profit for the year attributable to equity holders of the parent | 7,776 | 13.7 | % | 10,167 | 16.7 | % | 5,403 | 8.6 | % | 2,392 | 30.8 | % | (4,765 | ) | (46.9 | )% |
· |
· |
· |
ACCESSES | |||||
Thousands of accesses | 2012 | 2013 | 2014 | %Var 12/13 | %Var 13/14 |
Fixed telephony accesses (1) (2) (3) | 40,002.6 | 39,338.5 | 36,830.0 | (1.7%) | (6.4%) |
Internet and data accesses | 19,402.6 | 19,102.0 | 18,151.7 | (1.5%) | (5.0%) |
Narrowband | 653.2 | 510.8 | 373.1 | (21.8%) | (27.0%) |
Broadband (4) | 18,596.2 | 18,447.8 | 17,668.5 | (0.8%) | (4.2%) |
Other (5) | 153.1 | 143.4 | 110.1 | (6.3%) | (23.3%) |
Mobile accesses | 247,346.9 | 254,717.2 | 274,458.0 | 3.0% | 7.8% |
Prepay (6) (7) | 165,821.9 | 165,557.0 | 175,720.4 | (0.2%) | 6.1% |
Contract | 81,525.0 | 89,160.3 | 98,737.6 | 9.4% | 10.7% |
Pay-TV (8) | 3,336.2 | 3,602.2 | 5,087.2 | 8.0% | 41.2% |
Unbundled loops | 3,308.8 | 3,833.4 | 4,087.3 | 15.9% | 6.6% |
Shared ULL | 183.5 | 130.6 | 94.1 | (28.9%) | (27.9%) |
Full ULL | 3,125.3 | 3,702.9 | 3,993.3 | 18.5% | 7.8% |
Wholesale ADSL | 845.4 | 866.9 | 750.1 | 2.5% | (13.5%) |
Other | 1,577.1 | 1,658.2 | 1,684.1 | 5.1% | 1.6% |
Final Clients Accesses | 310,088.3 | 316,759.9 | 334,526.9 | 2.2% | 5.6% |
Wholesale Accesses | 5,731.3 | 6,358.5 | 6,521.6 | 10.9% | 2.6% |
Total Accesses | 315,819.6 | 323,118.4 | 341,048.5 | 2.3% | 5.5% |
Notes: - Telefónica Czech Republic accesses are de-consolidated from the first quarter of 2014, Telefónica Ireland accesses are de-consolidated from the third quarter of 2014 and E-Plus accesses are consolidated from the fourth quarter of 2014. | |||||
- Telefónica Spain mobile accesses include since 2013 the accesses of Tuenti; in 2012 they have been restated with the same criteria. | |||||
(1) RTB (includes public use telephony) x1; Basic Access RDSI x1; Primarily Access RDSI; Digital Access 2/6 x30. Includes internal use. Includes "fixed wireless" voice accesses. Includes Voice over IP and Naked DSL. | |||||
(2) In the first quarter of 2014, 45 thousands inactive "fixed wireless" accesses were disconnected in Mexico. | |||||
(3) In the second quarter of 2014, fixed clients includes 50 thousands additional fixed wireless clients in Peru. | |||||
(4) Includes DSL, satellite, optic fiber, cable modem and broadband circuits. | |||||
(5) Rest of retail non broadband circuits. | |||||
(6) In the first quarter of 2014, 1.9 million inactive accesses were disconnected in Mexico. | |||||
(7) In the fourth quarter 2014, 1.8 million inactive accesses were disconnected in Central America. | |||||
(8) In the second quarter of 2014, Pay-TV accesses includes 131 thousand "TV Mini" clients in Spain. |
Year ended December 31 | Percent Change | |||||||||||||
2012 | 2013 | 2014 | 2013 vs 2012 | 2014 vs 2013 | ||||||||||
Millions of Euros | Total | % of revenues | Total | % of revenues | Total | % of revenues | Total | % | Total | % | ||||
Revenues | 62,356 | 100.0% | 57,061 | 100.0% | 50,377 | 100.0% | (5,295) | (8.5%) | (6,684) | (11.7%) | ||||
Other income | 2,323 | 3.7% | 1,693 | 3.0% | 1,707 | (3.4%) | (630) | (27.1%) | 14 | 0.9% | ||||
Supplies | (18,074) | (29.0%) | (17,041) | (29.9%) | (15,182) | (30.1%) | 1,033 | (5.7%) | 1,859 | (10.9%) | ||||
Personnel expenses | (8,569) | (13.7%) | (7,208) | (12.6%) | (7,098) | (14.1%) | 1,361 | (15.9%) | 110 | (1.5%) | ||||
Other expenses | (16,805) | (27.0%) | (15,428) | (27.0%) | (14,289) | (28.4%) | 1,377 | (8.2%) | 1,139 | (7.4%) | ||||
Operating income before depreciation and amortization (OIBDA) | 21,231 | 34.0% | 19,077 | 33.4% | 15,515 | 30.8% | (2,154) | (10.1%) | (3,562) | (18.7%) | ||||
Depreciation and amortization | (10,433) | (16.7%) | (9,627) | (16.9%) | (8,548) | (17.0%) | 806 | (7.7%) | 1,079 | (11.2%) | ||||
Operating income | 10,798 | 17.3% | 9,450 | 16.6% | 6,967 | 13.8% | (1,348) | (12.5%) | (2,483) | (26.3%) | ||||
Share of loss of investments accounted for by the equity method | (1,275) | (2.0%) | (304) | (0.5%) | (510) | (1.0%) | 971 | (76.2%) | (206) | 68.2% | ||||
Net financial expense | (3,659) | (5.9%) | (2,866) | (5.0%) | (2,822) | (5.6%) | 793 | (21.7%) | 44 | (1.6%) | ||||
Corporate income tax | (1,461) | (2.3%) | (1,311) | (2.3%) | (383) | (0.8%) | 150 | (10.3%) | 928 | (70.8%) | ||||
Profit for the year | 4,403 | 7.1% | 4,969 | 8.7% | 3,252 | 6.5% | 566 | 12.9% | (1,717) | (34.6%) | ||||
Non-controlling interests | (475) | (0.8%) | (376) | (0.7%) | (251) | (0.5%) | 99 | (20.8%) | 125 | (33.2%) | ||||
Profit for the year attributable to equity holders of the parent | 3,928 | 6.3% | 4,593 | 8.0% | 3,001 | 6.0% | 665 | 16.9% | (1,592) | (34.7%) |
Percent Change | ||||||||||||||||||||||||||||||||||||||||
Year ended December 31, | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||||||||||||||||
2009 | % | 2010 | % | 2011 | % | Reported | Excl. FX(1) | Reported | Excl. FX(1) | |||||||||||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||||||||||||||
Revenues | 56,731 | 60,737 | 62,837 | 7.1 | % | 4.9 | % | 3.5 | % | 4.2 | % | |||||||||||||||||||||||||||||
Telefónica Spain | 19,703 | 34.7 | % | 18,711 | 30.8 | % | 17,284 | 27.5 | % | (5.0 | )% | (5.0 | )% | (7.6 | )% | (7.6 | )% | |||||||||||||||||||||||
Telefónica Europe | 13,954 | 24.6 | % | 15,724 | 25.9 | % | 15,524 | 24.7 | % | 12.7 | % | 10.1 | % | (1.3 | )% | (1.0 | )% | |||||||||||||||||||||||
Telefónica Latin America | 22,709 | 40.0 | % | 25,756 | 42.4 | % | 29,237 | 46.5 | % | 13.4 | % | 10.0 | % | 13.5 | % | 15.1 | % | |||||||||||||||||||||||
OIBDA | 22,603 | 25,777 | 20,210 | 14.0 | % | 13.0 | % | (21.6 | )% | (21.2 | )% | |||||||||||||||||||||||||||||
Telefónica Spain | 9,757 | 43.2 | % | 8,520 | 33.1 | % | 5,072 | 25.1 | % | (12.7 | )% | (12.7 | )% | (40.5 | )% | (40.5 | )% | |||||||||||||||||||||||
Telefónica Europe | 3,999 | 17.7 | % | 4,080 | 15.8 | % | 4,233 | 20.9 | % | 2.0 | % | (0.6 | )% | 3.8 | % | 3.7 | % | |||||||||||||||||||||||
Telefónica Latin America | 9,041 | 40.0 | % | 13,713 | 53.2 | % | 10,941 | 54.1 | % | 51.7 | % | 50.6 | % | (20.2 | )% | (19.4 | )% | |||||||||||||||||||||||
OIBDA Margin | 39.8% | 42.4% | 32.2% | |||||||||||||||||||||||||||||||||||||
Telefónica Spain | 49.5% | 45.5% | 29.3% | |||||||||||||||||||||||||||||||||||||
Telefónica Europe | 28.7% | 25.9% | 27.3% | |||||||||||||||||||||||||||||||||||||
Telefónica Latin America | 39.8% | 53.2% | 37.4% | |||||||||||||||||||||||||||||||||||||
Operating income | 13,647 | 16,474 | 10,064 | 20.7 | % | 22.4 | % | (38.9 | )% | (38.1 | )% | |||||||||||||||||||||||||||||
Telefónica Spain | 7,617 | 55.8 | % | 6,511 | 39.5 | % | 2,984 | 29.7 | % | (14.5 | )% | (14.5 | )% | (54.2 | )% | (54.2 | )% | |||||||||||||||||||||||
Telefónica Europe | 1,011 | 7.4 | % | 879 | 5.3 | % | 1,116 | 11.1 | % | (13.1 | )% | (16.8 | )% | 27.0 | % | 26.5 | % | |||||||||||||||||||||||
Telefónica Latin America | 5,341 | 39.1 | % | 9,759 | 59.2 | % | 6,157 | 61.2 | % | 82.7 | % | 88.0 | % | (36.9 | )% | (35.5 | )% | |||||||||||||||||||||||
Net Results | 7,776 | 10,167 | 5,403 |
· | exchange rate differences and the |
· | changes to the scope of consolidation (-1.4 p.p.) caused by the sales of Telefónica Czech Republic and Telefónica Ireland and the acquisition of the E-Plus Group; |
· | impact of the sale agreements of Telefónica Ireland and Telefónica Czech Republic (-0.5 p.p.) in 2013; and |
· | the recognition in 2014 of expenditures mainly on the global restructuring program, in accordance with the simplification initiatives the Group is implementing to meet its targets, totaling 652 million euros (670 million euros excluding exchange rate effects), accounting for 1.7 percentage points. |
· | Supplies amounted to 15,182 million euros in 2014, down 10.9% against 2013, mainly due to exchange rate differences and the effect of hyperinflation in Venezuela, which decreased supplies expenses by 8.6 percentage points. The year-on-year change was also affected by changes to the scope of consolidation (due to the sales of Telefónica Czech Republic and Telefónica Ireland and from the acquisition of the E-Plus Group, resulting in |
· | Personnel expenses totaled 7,098 million euros in 2014, down 1.5% compared to 2013, mainly affected by exchange rate differences and the effect of hyperinflation in Venezuela, (-12.1 p.p.) and changes to the scope of consolidation (-2.4 p.p.) which were mostly offset by the expenditures on the global restructuring program, in accordance with the the simplification initiatives the Group is implementing to meet its targets (+8.1 p.p.). Excluding these impacts, personnel costs rose by 5.2% in 2014 compared to 2013 due to higher prices in some countries. |
· | Other expenses amounted to 14,289 million euros in 2014, down 7.4% as compared to 2013 mainly caused by exchange rate differences and the effect of hyperinflation in Venezuela (-13.9 p.p.). The year-on-year variation was also affected by the impact of value adjustments in the sales of Telefónica Ireland and Telefónica Czech Republic (-1.2 p.p.), changes to the scope of consolidation by the sales of Telefónica Czech Republic and Telefónica Ireland and the acquisition of the E-Plus Group (-0.5 p.p.) and the recognition of integration costs in Telefónica Germany (+0.6 p.p.). Excluding these impacts, other expenses would have increased by 8.1% due to higher commercial costs, higher network costs produced by larger volumes of data traffic and greater outlays on modernization of the network. |
· | the effect of exchange rates and hyperinflation in Venezuela (-13.1 p.p.); |
· | changes to the scope of consolidation (-3.5 p.p.) following the exclusion of Telefónica Czech Republic and Telefónica Ireland and the inclusion of the E-Plus Group; |
· | recognition in 2014 of expenditure mainly on the global restructuring program, in accordance with the simplification initiatives the Group is implementing to meet its targets, totaling 652 million euros (670 million euros at the exchange rate used to calculate 2013 results), accounting a decrease of 3.5 percentage points; |
· | the impact of the sale of companies in 2013, chiefly the sale agreements for Telefónica Ireland (16 million euros) and Telefónica Czech Republic (176 million euros) (+1 p.p.), and the sale of Hispasat (21 million euros; -0.1 p.p); and |
· | a higher sale value of non-strategic towers in 2014 compared to 2013 (196 million euros in 2014, mainly in Telefónica Spain (191 million euros), and 111 million euros in 2013, mainly in Telefónica Spain (70 million euros), Telefónica Brazil (29 million euros) and Telefónica Hispanoamérica (11 million euros, in Mexico, Chile and Colombia)). This effect accounts for 0.5 percentage points of OIBDA growth. |
· | exchange rate differences and the effect of hyperinflation in Venezuela (-7.3 p.p.); |
· | changes in the consolidation perimeter caused by the disposal of Atento and Rumbo (-1.9 p.p.); |
· | value adjustments and loss on sale of companies in 2013 and 2012: |
· | the impact of losses on the sale of companies in 2013, (totaling 192 million euros), primarily from the sale agreements to Telefónica Ireland and Telefónica Czech Republic (+0.4 p.p.); |
· | the impact of value adjustments and loss on sale of companies in 2012, which totaled an amount of 624 million euros, primarily from the sale of part of our stake in China Unicom and a value adjustment of Telefónica Ireland (-1.4 p.p.); and |
· | a contractual change in the commercial model for selling handsets in Chile as a result of which we began from September 2012, to record all of the costs of handsets sold immediately rather than capitalizing such costs and depreciating them over the life of the contract (+0.4 p.p.). |
· | Supplies stood at 17,041 million euros in 2013, falling 5.7% with respect to 2012, affected to a large degree by exchange rate differences and the effect of hyperinflation in Venezuela, which reduced this item by 7.3 percentage points. Additionally, the year-on-year change is affected by changes in the consolidation perimeter (-1.4 p.p.) and by the contractual change in the commercial model for selling handsets in Chile discussed above (+0.9 p.p.). Excluding both effects, expenses grew 2%, as a result of the greater commercial activity in Telefónica Brazil and Telefónica Hispanoamérica, both in the mobile segment, due to an increase in the weighting of smartphone sales, and in the fixed business, mainly Pay-TV, which offset the decline in equipment costs of operators in Europe and the lower termination costs at the group level. |
· | Personnel expenses totaled 7,208 million euros and fell by 15.9% with respect to 2012, mainly affected by the exchange rate differences and the effect of hyperinflation in Venezuela (-6.2 p.p.) and changes in the consolidation perimeter (-13.6 p.p.). Excluding both effects personnel expenses increased by 4% due to the negative impact of inflation in certain Latin American countries, which more than offset declines reported by Telefónica Spain, Telefónica Czech Republic and Telefónica United Kingdom due to savings from workforce restructuring |
· | Other expenses amounted to 15,428 million euros, falling 8.2%, mainly affected by the impact of exchange rate differences and the effect of hyperinflation in Venezuela (-8 p.p.). In addition, it was also affected by the above-mentioned value adjustment in companies in 2012 and 2013 (-2.6 p.p.), expenses associated with the sale of non-strategic towers (-0.1 p.p.) and changes in the consolidation perimeter (+3.5 p.p.). Excluding these effects this item fell 1.1%, explained by the lower costs of operators in Europe, mainly in commercial expenses, systems and networks, due to the efficiency measures carried out especially in Telefónica Spain, which involved simplification of processes, distribution channels and call centers redefinition, internalization of activities, savings from the restructuring plan and temporary cancelation of the corporate contribution to pension plans. |
· | exchange rate differences and the effect of hyperinflation in Venezuela (-7.5 p.p.); |
· | the lower amount of non-strategic towers sold in 2013 compared to 2012 (-2.5 p.p.); |
· | changes in the consolidation perimeter mainly caused by the disposal of Atento (-1.0 p.p.); |
· | the contractual change in the commercial model for selling handsets in Chile (-0.8 p.p.); |
· | value adjustments and loss on sale of companies in 2013 and 2012: |
· | the impact of the sale of companies mainly the disposal of Telefónica Ireland and Telefónica Czech Republic in 2013 (-1.3 p.p.); and |
· | the impact of value adjustments and loss on sale of companies in 2012 totaled 624 million euros, primarily from the sale of part of our stake in China Unicom and a value adjustment of Telefónica Ireland (+2.9 p.p.). |
% YoY 12/13 | % YoY 13/14 | |||||||||||
Millions of euros | 2012 | % Total | 2013 | % Total | 2014 | % Total | Reported | Ex fx (*) | Reported | Ex fx (*) | ||
Revenues | 62,356 | 57,061 | 50,377 | (8.5%) | (1.0%) | (11.7%) | 0.4% | |||||
Telefonica Spain | 14,996 | 24.0% | 12,959 | 22.7% | 12,023 | 23.9% | (13.6%) | (13.6%) | (7.2%) | (7.2%) | ||
Telefonica United Kingdom | 7,042 | 11.3% | 6,692 | 11.7% | 7,062 | 14.0% | (5.0%) | (0.5%) | 5.5% | 0.2% | ||
Telefonica Germany | 5,213 | 8.4% | 4,914 | 8.6% | 5,522 | 11.0% | (5.7%) | (5.7%) | 12.4% | 12.4% | ||
Telefonica Brazil | 13,618 | 21.8% | 12,217 | 21.4% | 11,231 | 22.3% | (10.3%) | 2.2% | (8.1%) | 0.5% | ||
Telefonica Hispanoamérica | 16,741 | 26.8% | 16,855 | 29.5% | 13,155 | 26.1% | 0.7% | 16.1% | (22.0%) | 14.6% | ||
OIBDA | 21,231 | 19,077 | 15,515 | (10.1%) | (2.6%) | (18.7%) | (5.7%) | |||||
Telefonica Spain | 6,815 | 32.1% | 6,340 | 33.2% | 5,671 | 36.6% | (7.0%) | (7.0%) | (10.6%) | (10.6%) | ||
Telefonica United Kingdom | 1,602 | 7.5% | 1,637 | 8.6% | 1,744 | 11.2% | 2.2% | 7.0% | 6.5% | 1.1% | ||
Telefonica Germany | 1,351 | 6.4% | 1,308 | 6.9% | 733 | 4.7% | (3.2%) | (3.2%) | (44.0%) | (44.0%) | ||
Telefonica Brazil | 5,161 | 24.3% | 3,940 | 20.7% | 3,543 | 22.8% | (23.7%) | (13.0%) | (10.1%) | (1.7%) | ||
Telefonica Hispanoamérica | 5,983 | 28.2% | 5,531 | 29.0% | 4,068 | 26.2% | (7.6%) | 8.6% | (26.5%) | 14.2% | ||
OIBDA Margin | 34.0% | 33.4% | 30.8% | |||||||||
Telefonica Spain | 45.4% | 48.9% | 47.2% | |||||||||
Telefonica United Kingdom | 22.7% | 24.5% | 24.7% | |||||||||
Telefonica Germany | 25.9% | 26.6% | 13.3% | |||||||||
Telefonica Brazil | 37.9% | 32.3% | 31.5% | |||||||||
Telefonica Hispanoamérica | 35.7% | 32.8% | 30.9% | |||||||||
Operating Income (OI) | 10,798 | 9,450 | 6,967 | (12.5%) | (2.8%) | (26.3%) | (7.5%) | |||||
Telefonica Spain | 4,752 | 44.0% | 4,437 | 46.9% | 3,866 | 55.5% | (6.6%) | (6.6%) | (12.9%) | (12.9%) | ||
Telefonica United Kingdom | 607 | 5.6% | 621 | 6.6% | 623 | 8.9% | 2.3% | 7.2% | 0.3% | (4.7%) | ||
Telefonica Germany | 118 | 1.1% | 77 | 0.8% | (693) | (9.9%) | (35.4%) | (35.4%) | n.m. | n.m. | ||
Telefonica Brazil | 2,843 | 26.3% | 1,831 | 19.4% | 1,781 | 25.6% | (35.6%) | (26.6%) | (2.7%) | 6.3% | ||
Telefonica Hispanoamérica | 3,221 | 29.8% | 3,007 | 31.8% | 2,034 | 29.2% | (6.6%) | 16.8% | (32.4%) | 20.9% | ||
Profit for the year attributable to equity holders of the parent | 3,928 | 4,593 | 3,001 | |||||||||
(*) Excludes exchange rate effects and hyperinflation in Venezuela. |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 24,578.3 | 24,403.6 | 23,960.7 | (0.7 | )% | (1.8 | )% | |||||||||||||
Internet and data accesses | 7,605.2 | 8,235.1 | 8,885.9 | 8.3 | % | 7.9 | % | |||||||||||||
Narrowband accesses(2) | 1,070.6 | 674.8 | 389.4 | (37.0 | )% | (42.3 | )% | |||||||||||||
Broadband accesses(3)(4) | 6,426.8 | 7,442.3 | 8,385.9 | 15.8 | % | 12.7 | % | |||||||||||||
Other accesses(5) | 107.8 | 118.0 | 110.6 | 9.5 | % | (6.3 | )% | |||||||||||||
Mobile accesses | 134,698.9 | 149,255.4 | 166,297.9 | 10.8 | % | 11.4 | % | |||||||||||||
Pre-pay accesses | 111,503.6 | 119,359.1 | 131,087.2 | 7.0 | % | 9.8 | % | |||||||||||||
Contract accesses | 23,195.4 | 29,896.3 | 35,210.7 | 28.9 | % | 17.8 | % | |||||||||||||
Pay TV accesses(6) | 1,648.6 | 1,792.7 | 2,257.7 | 8.7 | % | 25.9 | % | |||||||||||||
Final clients accesses | 168,531.1 | 183,686.9 | 201,402.2 | 9.0 | % | 9.6 | % | |||||||||||||
Wholesale accesses | 56.1 | 55.9 | 50.9 | (0.4 | )% | (9.0 | )% | |||||||||||||
Total accesses | 168,587.2 | 183,742.8 | 201,453.0 | 9.0 | % | 9.6 | % |
Market Share Mobile Business(1) | ||||||||||||
At December 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
Brazil | 29.7 | % | 29.7 | % | 29.5 | % | ||||||
Argentina | 33.0 | % | 31.0 | % | 29.8 | % | ||||||
Chile | 42.8 | % | 41.4 | % | 39.1 | % | ||||||
Peru | 63.2 | % | 63.4 | % | 61.4 | % | ||||||
Colombia | 21.3 | % | 22.4 | % | 22.4 | % | ||||||
Venezuela | 36.9 | % | 32.7 | % | 32.7 | % | ||||||
Mexico | 20.9 | % | 21.5 | % | 21.1 | % | ||||||
Central America | 22.4 | % | 22.5 | % | 21.7 | % | ||||||
Ecuador | 28.4 | % | 28.2 | % | 28.4 | % | ||||||
Uruguay | 39.3 | % | 38.5 | % | 38.0 | % |
Market Share Internet and Data Business(1) | ||||||||||||
At December 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
Brazil | 23.2 | % | 24.8 | % | 21.9 | % | ||||||
Argentina | 32.0 | % | 31.9 | % | 31.1 | % | ||||||
Chile | 46.1 | % | 45.5 | % | 43.0 | % | ||||||
Peru | 93.9 | % | 91.2 | % | 90.1 | % | ||||||
Colombia | 18.9 | % | 20.8 | % | 18.1 | % |
Percent Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||||
2009 | 2010 | 2011 | Reported | Excl. FX(1) | Reported | Excl. FX(1) | ||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||
Revenues | 22,709 | 25,756 | 29,237 | 13.4 | % | 10.0 | % | 13.5 | % | 15.1 | % | |||||||||||||||||
OIBDA | 9,041 | 13,713 | 10,941 | 51.7 | % | 50.6 | % | (20.2 | )% | (19.4 | )% | |||||||||||||||||
OIBDA margin | 39.8 | % | 53.2 | % | 37.4 | % | 13.4 p. | p. | 14.5 p. | p. | (15.8) p. | p. | (16.0) p. | p. | ||||||||||||||
Depreciation and amortization | (3,700 | ) | (3,954 | ) | (4,783 | ) | 6.9 | % | (4.0 | )% | 21.0 | % | 21.1 | % | ||||||||||||||
Operating income | 5,341 | 9,759 | 6,157 | 82.7 | % | 88.0 | % | (36.9 | )% | (35.5 | )% |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 11,253.8 | 11,292.6 | 10,977.4 | 0.3 | % | (2.8 | )% | |||||||||||||
Internet and data accesses | 3,440.2 | 3,848.2 | 3,942.6 | 11.9 | % | 2.5 | % | |||||||||||||
Narrowband accesses | 723.1 | 446.2 | 214.5 | (38.3 | )% | (51.9 | )% | |||||||||||||
Broadband accesses(2) | 2,638.4 | 3,319.2 | 3,648.0 | 25.8 | % | 9.9 | % | |||||||||||||
Other accesses(3) | 78.7 | 82.8 | 80.0 | 5.2 | % | (3.3 | )% | |||||||||||||
Mobile accesses | 51,744.4 | 60,292.5 | 71,553.6 | 16.5 | % | 18.7 | % | |||||||||||||
Pre-pay accesses | 41,960.7 | 47,658.6 | 55,438.1 | 13.6 | % | 16.3 | % | |||||||||||||
Contract accesses | 9,783.7 | 12,633.9 | 16,115.5 | 29.1 | % | 27.6 | % | |||||||||||||
Pay TV accesses(4) | 487.2 | 486.3 | 698.6 | (0.2 | )% | 43.7 | % | |||||||||||||
Final clients accesses | 66,925.7 | 75,919.6 | 87,172.1 | 13.4 | % | 14.8 | % | |||||||||||||
Wholesale accesses | 34.2 | 33.9 | 28.0 | (0.9 | )% | (17.3 | )% | |||||||||||||
Total accesses | 66,959.8 | 75,953.5 | 87,200.1 | 13.4 | % | 14.8 | % |
Year ended December 31, | Percent Change | |||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||
Euro | Local Currency | Euro | Local Currency | |||||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||
Revenues | 8,376 | 11,119 | 14,326 | 32.8 | % | 12.1 | % | 28.8 | % | 28.7 | % | |||||||||||||||||
Mobile business | 3,036 | 4,959 | 8,437 | 63.4 | % | 37.9 | % | n.c. | n.c. | |||||||||||||||||||
Service revenues | 2,792 | 4,649 | 8,014 | 66.5 | % | 40.3 | % | n.c. | n.c. | |||||||||||||||||||
Fixed telephony business | 5,766 | 6,843 | 5,890 | 18.7 | % | 0.2 | % | n.c. | n.c. | |||||||||||||||||||
OIBDA | 3,139 | 4,074 | 5,302 | 29.8 | % | 9.6 | % | 30.2 | % | 30.0 | % | |||||||||||||||||
OIBDA Margin | 37.5 | % | 36.6 | % | 37.0 | % | (0.9) p. | p. | (0.9) p. | p. | 0.4 p. | p. | 0.4 p. | p. | ||||||||||||||
CAPEX | 1,228 | 1,797 | 2,468 | 46.4 | % | 23.6 | % | 37.4 | % | 37.2 | % | |||||||||||||||||
OpCF (OIBDA – CAPEX) | 1,911 | 2,277 | 2,834 | 19.1 | % | 0.6 | % | 24.5 | % | 24.3 | % |
Year ended December 31, | Percent Change (local currency) | ||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | |||||||||||||||
Traffic (millions of minutes) | 52,134 | 77,463 | 92,081 | 48.6 | % | n.c. | |||||||||||||
ARPU (in euro) | 9.9 | 11.0 | 10.2 | (6.0 | )% | n.c. |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 4,607.7 | 4,621.5 | 4,611.0 | 0.3 | % | (0.2 | )% | |||||||||||||
Fixed wireless accesses | 36.2 | 35.5 | 38.2 | (1.9 | )% | 7.6 | % | |||||||||||||
Internet and data accesses | 1,351.0 | 1,505.4 | 1,630.7 | 11.4 | % | 8.3 | % | |||||||||||||
Narrowband accesses | 112.7 | 65.7 | 35.7 | (41.7 | )% | (45.7 | )% | |||||||||||||
Broadband accesses(2) | 1,238.3 | 1,439.7 | 1,595.1 | 16.3 | % | 10.8 | % | |||||||||||||
Mobile accesses | 15,931.9 | 16,148.9 | 16,766.7 | 1.4 | % | 3.8 | % | |||||||||||||
Pre-pay accesses | 10,736.8 | 10,370.4 | 10,581.3 | (3.4 | )% | 2.0 | % | |||||||||||||
Contract accesses | 5,195.2 | 5,778.5 | 6,185.4 | 11.2 | % | 7.0 | % | |||||||||||||
Final clients accesses | 21,890.7 | 22,275.8 | 23,008.4 | 1.8 | % | 3.3 | % | |||||||||||||
Wholesale accesses | 9.3 | 13.0 | 13.9 | 39.8 | % | 7.0 | % | |||||||||||||
Total accesses | 21,900.0 | 22,288.8 | 23,002.3 | 1.8 | % | 3.3 | % |
Year ended December 31, | Percent Change | |||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||
Euro | Local Currency | Euro | Local Currency | |||||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||
Revenues | 2,609 | 3,073 | 3,174 | 17.8 | % | 17.9 | % | 3.3 | % | 14.5 | % | |||||||||||||||||
Mobile business | 1,643 | 1,979 | 2,039 | 20.4 | % | 20.6 | % | 3.0 | % | 14.2 | % | |||||||||||||||||
Service revenues | 1,522 | 1,845 | 1,880 | 21.2 | % | 21.4 | % | 1.9 | % | 12.9 | % | |||||||||||||||||
Fixed telephony business | 1,047 | 1,187 | 1,237 | 13.3 | % | 13.5 | % | 4.3 | % | 15.6 | % | |||||||||||||||||
OIBDA | 986 | 1,082 | 1,085 | 9.7 | % | 9.8 | % | 0.2 | % | 11.1 | % | |||||||||||||||||
OIBDA Margin | 36.8 | % | 34.3 | % | 33.4 | % | (2.5) p. | p. | (2.5) p. | p. | (0.9) p. | p. | (0.9) p. | p. | ||||||||||||||
CAPEX | 319 | 398 | 449 | 25.1 | % | 25.2 | % | 12.6 | % | 24.9 | % | |||||||||||||||||
OpCF (OIBDA – CAPEX) | 668 | 684 | 636 | 2.4 | % | 2.5 | % | (7.0 | )% | 3.1 | % |
Year ended December 31, | Percent Change (local currency) | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
Traffic (millions of minutes) | 15,562 | 17,550 | 18,788 | 12.8 | % | 7.1 | % | |||||||||||||
ARPU (in euro) | 8.6 | 9.2 | 9.7 | 6.7 | % | 17.3 | % |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mobile accesses | 10,531.4 | 9,514.7 | 9,438.7 | (9.7 | )% | (0.8 | )% | |||||||||||||
Pre-pay accesses | 9,891.1 | 8,740.3 | 8,570.9 | (11.6 | )% | (1.9 | )% | |||||||||||||
Contract accesses | 640.3 | 774.4 | 867.8 | 20.9 | % | 12.1 | % | |||||||||||||
Fixed wireless accesses | 1,214.3 | 966.2 | 883.4 | (20.4 | )% | (8.6 | )% | |||||||||||||
Pay TV accesses | 62.8 | 69.3 | 114.3 | 10.4 | % | 65.0 | % | |||||||||||||
Total accesses | 11,808.5 | 10,550.2 | 10,436.4 | (10.7 | )% | (1.1 | )% |
Year ended December 31, | Percent Change | |||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||
Euro | Local Currency | Euro | Local Currency | |||||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||
Revenues | 3,773 | 2,318 | 2,688 | (38.6 | )% | 15.0 | % | 15.9 | % | 11.2 | % | |||||||||||||||||
Service revenues | 2,841 | 2,073 | 2,435 | (27.0 | )% | 21.3 | % | 17.5 | % | 12.8 | % | |||||||||||||||||
OIBDA | 1,818 | 1,087 | 1,177 | (40.2 | )% | 10.4 | % | 8.2 | % | 4.4 | % | |||||||||||||||||
OIBDA Margin | 48.2 | % | 46.9 | % | 43.8 | % | (1.3) p. | p. | (1.3) p. | p. | (3.1) p. | p. | (3.1) p. | p. | ||||||||||||||
CAPEX | 423 | 293 | 372 | (30.7 | )% | 18.7 | % | 26.9 | % | 0.9 | % | |||||||||||||||||
OpCF (OIBDA – CAPEX) | 1,395 | 794 | 805 | (43.1 | )% | 7.7 | % | 1.3 | % | 5.6 | % |
Year ended December 31, | Percent Change (local currency) | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
Traffic (millions of minutes) | 14,951 | 14,195 | 14,529 | (5.1 | )% | 2.4 | % | |||||||||||||
ARPU (in euro) | 21.2 | 14.3 | 16.7 | 26.3 | % | 24.8 | % |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 2,028.0 | 1,939.3 | 1,848.1 | (4.4 | )% | (4.7 | )% | |||||||||||||
Internet and data accesses | 807.2 | 836.0 | 887.4 | 3.6 | % | 6.1 | % | |||||||||||||
Narrowband accesses | 15.9 | 6.6 | 5.8 | (58.5 | )% | (12.3 | )% | |||||||||||||
Broadband accesses(2) | 783.2 | 821.5 | 878.1 | 4.9 | % | 6.9 | % | |||||||||||||
Other accesses(3) | 8.1 | 7.9 | 3.5 | (2.5 | )% | (55.9 | )% | |||||||||||||
Mobile accesses | 7,524.7 | 8,794.0 | 9,548.1 | 16.9 | % | 8.6 | % | |||||||||||||
Pre-pay accesses | 5,435.9 | 6,179.3 | 6,732.7 | 13.7 | % | 9.0 | % | |||||||||||||
Contract accesses | 2,088.8 | 2,614.7 | 2,815.4 | 25.2 | % | 7.7 | % | |||||||||||||
Pay TV accesses | 285.1 | 341.2 | 390.8 | 19.7 | % | 14.5 | % | |||||||||||||
Final clients accesses | 10,645.0 | 11,910.5 | 12,674.4 | 11.9 | % | 6.4 | % | |||||||||||||
Wholesale accesses | 8.9 | 5.3 | 5.2 | (40.4 | )% | (2.2 | )% | |||||||||||||
Total accesses | 10,653.8 | 11,915.8 | 12,679.6 | 11.8 | % | 6.4 | % |
Year ended December 31, | Percent Change | |||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||
Euro | Local Currency | Euro | Local Currency | |||||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||
Revenues | 1,831 | 2,197 | 2,310 | 20.0 | % | 4.3 | % | 5.2 | % | 4.8 | % | |||||||||||||||||
Mobile business | 1,010 | 1,266 | 1,399 | 25.4 | % | 9.0 | % | 10.5 | % | 10.1 | % | |||||||||||||||||
Service revenues | 918 | 1,175 | 1,283 | 28.0 | % | 11.2 | % | 9.2 | % | 8.9 | % | |||||||||||||||||
Fixed telephony business | 893 | 1,038 | 1,037 | 16.3 | % | 1.1 | % | (0.1 | )% | (0.4 | )% | |||||||||||||||||
OIBDA | 763 | 1,092 | 1,035 | 43.2 | % | 24.5 | % | (5.2 | )% | (5.5 | )% | |||||||||||||||||
OIBDA Margin | 41.7 | % | 49.7 | % | 44.8 | % | 8.0 p. | p. | 8.0 p. | p. | (4.9) p. | p. | (4.9) p. | p. | ||||||||||||||
CAPEX | 347 | 516 | 529 | 48.8 | % | 29.3 | % | 2.4 | % | 2.1 | % | |||||||||||||||||
OpCF (OIBDA – CAPEX) | 416 | 576 | 507 | 38.5 | % | 20.4 | % | (12.0 | )% | (12.3 | )% |
Year ended December 31, | Percent Change (local currency) | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
Traffic (millions of minutes) | 10,521 | 11,791 | 12,218 | 12.1 | % | 3.6 | % | |||||||||||||
ARPU (in euro) | 10.7 | 12.1 | 11.6 | (1.8 | )% | (4.1 | )% |
At December 31 | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mobile accesses | 17,400.5 | 19,661.6 | 19,742.4 | 13.0 | % | 0.4 | % | |||||||||||||
Pre-pay accesses | 16,328.3 | 18,061.3 | 18,149.8 | 10.6 | % | 0.5 | % | |||||||||||||
Contract accesses | 1,072.1 | 1,600.2 | 1,592.6 | 49.3 | % | (0.5 | )% | |||||||||||||
Fixed wireless | 334.3 | 565.5 | 745.3 | 69.2 | % | 31.8 | % | |||||||||||||
Total accesses | 17,734.8 | 20,227.1 | 20,487.7 | 14.1 | % | 1.3 | % |
Year ended December 31, | Percent Change | |||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||
Euro | Local Currency | Euro | Local Currency | |||||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||
Revenues | 1,552 | 1,832 | 1,557 | 18.0 | % | 5.0 | % | (15.0 | )% | (12.3 | )% | |||||||||||||||||
Service revenues | 1,412 | 1,651 | 1,387 | 16.9 | % | 4.1 | % | (16.0 | )% | (13.3 | )% | |||||||||||||||||
OIBDA | 564 | 623 | 572 | 10.5 | % | (1.7 | )% | (8.2 | )% | (5.2 | )% | |||||||||||||||||
OIBDA Margin | 36.3 | % | 34.0 | % | 36.7 | % | (2.3) p. | p. | (2.3) p. | p. | 2.7 p. | p. | 2.7 p. | p. | ||||||||||||||
CAPEX | 251 | 1,580 | 471 | n.s. | n.s. | (70.2 | )% | (69.2 | )% | |||||||||||||||||||
OpCF (OIBDA – CAPEX) | 313 | (957 | ) | 101 | c.s. | c.s. | c.s. | c.s. |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 2,971.2 | 2,871.2 | 2,848.4 | (3.4 | )% | (0.8 | )% | |||||||||||||
Fixed wireless | 582.7 | 537.8 | 444.6 | (7.7 | )% | (17.3 | )% | |||||||||||||
Internet and data accesses | 800.6 | 885.4 | 1,120.4 | 10.6 | % | 26.5 | % | |||||||||||||
Narrowband accesses | 16.9 | 15.4 | 9.4 | (8.9 | )% | (38.7 | )% | |||||||||||||
Broadband accesses(2) | 768.0 | 850.8 | 1,090.6 | 10.8 | % | 28.2 | % | |||||||||||||
Other accesses(3) | 15.6 | 19.2 | 20.4 | 23.1 | % | 6.1 | % | |||||||||||||
Mobile accesses | 11,458.2 | 12,507.1 | 13,998.3 | 9.2 | % | 11.9 | % | |||||||||||||
Pre-pay accesses | 10,214.2 | 10,104.4 | 11,079.6 | (1.1 | )% | 9.7 | % | |||||||||||||
Contract accesses | 1,244.1 | 2,402.7 | 2,918.7 | 93.1 | % | 21.5 | % | |||||||||||||
Pay TV accesses | 686.3 | 690.6 | 799.0 | 0.6 | % | 15.7 | % | |||||||||||||
Final clients accesses | 15,916.3 | 16,954.3 | 18,766.1 | 6.5 | % | 10.7 | % | |||||||||||||
Wholesale accesses | 0.5 | 0.5 | 0.4 | n.a. | (3.7 | )% | ||||||||||||||
Total accesses | 15,916.8 | 16,954.8 | 18,766.6 | 6.5 | % | 10.7 | % |
Year ended December 31, | Percent Change | |||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||
Euro | Local Currency | Euro | Local Currency | |||||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||
Revenues | 1,716 | 1,960 | 2,030 | 14.2 | % | 2.0 | % | 3.6 | % | 6.1 | % | |||||||||||||||||
Mobile business | 840 | 1,001 | 1,088 | 19.2 | % | 6.4 | % | 8.7 | % | 11.3 | % | |||||||||||||||||
Service revenues | 695 | 854 | 923 | 22.9 | % | 9.7 | % | 8.1 | % | 10.6 | % | |||||||||||||||||
Fixed telephony business | 1,006 | 1,097 | 1,069 | 9.0 | % | (2.6) | % | (2.5 | )% | (0.2 | )% | |||||||||||||||||
OIBDA | 712 | 812 | 751 | 14.0 | % | 1.8 | % | (7.6 | )% | (5.3 | )% | |||||||||||||||||
OIBDA Margin | 41.5 | % | 41.4 | % | 37.0 | % | (0.1) p. | p. | (0.1) p. | p. | (4.4) p. | p. | (4.4) p. | p. | ||||||||||||||
CAPEX | 271 | 295 | 302 | 8.9 | % | (2.7 | )% | 2.3 | % | 4.8 | % | |||||||||||||||||
OpCF (OIBDA – CAPEX) | 442 | 517 | 449 | 17.1 | % | 4.6 | % | (13.2 | )% | (11.1 | )% |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 1,639.8 | 1,586.9 | 1,480.6 | (3.2 | )% | (6.7 | )% | |||||||||||||
Internet and data accesses | 428.4 | 553.6 | 620.3 | 29.2 | % | 12.0 | % | |||||||||||||
Narrowband accesses | 5.9 | 5.6 | 7.9 | (5.1 | )% | 41.5 | % | |||||||||||||
Broadband accesses(2) | 420.3 | 548.0 | 612.3 | 30.4 | % | 11.7 | % | |||||||||||||
Other accesses(3) | 2.2 | 0.0 | 0.0 | n.a. | n.a. | |||||||||||||||
Mobile accesses | 8,964.6 | 10,004.5 | 11,391.1 | 11.6 | % | 13.9 | % | |||||||||||||
Pre-pay accesses | 7,203.2 | 7,679.1 | 8,626.8 | 6.6 | % | 12.3 | % | |||||||||||||
Contract accesses | 1,761.4 | 2,325.5 | 2,764.2 | 32.0 | % | 18.9 | % | |||||||||||||
Pay TV accesses | 127.2 | 205.3 | 255.0 | 61.4 | % | 24.2 | % | |||||||||||||
Final clients accesses | 11,159.9 | 12,350.3 | 13,746.9 | 10.7 | % | 11.3 | % | |||||||||||||
Wholesale accesses | 3.3 | 3.3 | 3.3 | n.a. | n.a. | |||||||||||||||
Total accesses | 11,163.2 | 12,353.6 | 13,750.2 | 10.7 | % | 11.3 | % |
Year ended December 31, | Percent Change | |||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||
Euro | Local Currency | Euro | Local Currency | |||||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||
Revenues | 1,269 | 1,529 | 1,561 | 20.5 | % | 1.3 | % | 2.1 | % | 4.5 | % | |||||||||||||||||
Mobile business | 685 | 872 | 916 | 27.4 | % | 7.1 | % | 5.0 | % | 7.5 | % | |||||||||||||||||
Service revenues | 647 | 814 | 851 | 25.8 | % | 5.7 | % | 4.5 | % | 6.9 | % | |||||||||||||||||
Fixed telephony business | 615 | 700 | 682 | 14.0 | % | (4.2 | )% | (2.7 | )% | (0.4 | )% | |||||||||||||||||
OIBDA | 397 | 484 | 540 | 22.1 | % | 2.6 | % | 11.5 | % | 14.2 | % | |||||||||||||||||
OIBDA Margin | 31.3 | % | 31.7 | % | 34.6 | % | 0.4 p. | p. | 0.4 p. | p. | 2.9 p. | p. | 2.9 p. | p. | ||||||||||||||
CAPEX | 316 | 334 | 405 | 5.9 | % | (11.0 | )% | 21.2 | % | 24.1 | % | |||||||||||||||||
OpCF (OIBDA – CAPEX) | 81 | 150 | 135 | 84.9 | % | 55.4 | % | (9.9 | )% | (7.8 | )% |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 14,200.1 | 13,279.7 | 12,305.4 | (6.5 | )% | (7.3 | )% | |||||||||||||
Free ADSL | 14.7 | 38.1 | 34.4 | 159.2 | % | (9.6 | )% | |||||||||||||
Internet and data accesses | 5,722.5 | 5,879.8 | 5,710.9 | 2.7 | % | (2.9 | )% | |||||||||||||
Narrowband accesses | 219.5 | 136.1 | 84.4 | (38.0 | )% | (38.0 | )% | |||||||||||||
Broadband accesses(2) | 5,476.8 | 5,722.3 | 5,608.6 | 4.5 | % | (2.0 | )% | |||||||||||||
Other accesses(3) | 26.2 | 21.4 | 17.9 | (18.3 | )% | (16.6 | )% | |||||||||||||
Mobile accesses | 23,538.6 | 24,309.6 | 24,174.3 | 3.3 | % | (0.6 | )% | |||||||||||||
Pre-pay accesses | 8,204.5 | 7,919.8 | 7,359.4 | (3.5 | )% | (7.1 | )% | |||||||||||||
Contract accesses | 15,334.1 | 16,389.7 | 16,814.9 | 6.9 | % | 2.6 | % | |||||||||||||
Pay TV accesses | 703.0 | 788.2 | 833.2 | 12.1 | % | 5.7 | % | |||||||||||||
Final clients accesses | 44,164.2 | 44,257.4 | 43,023.8 | 0.2 | % | (2.8 | )% | |||||||||||||
AMLT(4) | 97.4 | 294.5 | 440.6 | n.s. | 49.6 | % | ||||||||||||||
Rented Bundles | 2,153.8 | 2,477.1 | 2,881.1 | 15.0 | % | 16.3 | % | |||||||||||||
Shared UL accesses | 447.7 | 264.0 | 205.0 | (41.0 | )% | (22.3 | )% | |||||||||||||
Unbundled local loop accesses(5) | 1,706.1 | 2,213.1 | 2,676.1 | 29.7 | % | 20.9 | % | |||||||||||||
Wholesale ADSL | 359.0 | 561.3 | 709.6 | 56.4 | % | 26.4 | % | |||||||||||||
Other accesses(6) | 3.7 | 0.9 | 0.6 | (75.7 | )% | (29.2 | )% | |||||||||||||
Wholesale accesses | 2,614.0 | 3,333.8 | 4,031.9 | 27.5 | % | 20.9 | % | |||||||||||||
Total accesses | 46,778.2 | 47,591.2 | 47,055.7 | 1.7 | % | (1.1 | )% |
Market Share Mobile Business(1) | ||||||||||||
At December 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
Spain | 42.5 | % | 41.4 | % | 39.6 | % | ||||||
Market Share Internet and Data Business(1) | ||||||||||||
At December 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
Spain | 55.6 | % | 53.4 | % | 49.7 | % |
Year ended December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||
Revenues | 19,703 | 18,711 | 17,284 | (5.0 | )% | (7.6 | )% | |||||||||||||
Mobile business | 8,965 | 8,550 | 7,747 | (4.6 | )% | (9.4 | )% | |||||||||||||
Service revenues | 7,828 | 7,270 | 6,548 | (7.1 | )% | (9.9 | )% | |||||||||||||
Fixed telephony business | 12,167 | 11,397 | 10,631 | (6.3 | )% | (6.7 | )% | |||||||||||||
OIBDA | 9,757 | 8,520 | 5,072 | (12.7 | )% | (40.5 | )% | |||||||||||||
OIBDA Margin | 49.5 | % | 45.5 | % | 29.3 | % | (4.0 | ) p.p. | (16.2 | ) p.p. | ||||||||||
CAPEX | 1,863 | 2,021 | 2,914 | 8.4 | % | 44.2 | % | |||||||||||||
OpCF (OIBDA – CAPEX) | 7,894 | 6,499 | 2,158 | (17.7 | )% | (66.8 | )% |
As of or for the year ended December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
Traffic (millions of minutes) | 42,039 | 41,700 | 39,909 | (0.8 | )% | (4.3 | )% | |||||||||||||
ARPU (in euro) | 27.5 | 25.4 | 22.9 | (7.3 | )% | (10.2 | )% | |||||||||||||
Pre-pay | 12.6 | 11.4 | 9.3 | (9.1 | )% | (18.7 | )% | |||||||||||||
Contract | 36.5 | 32.6 | 29.1 | (10.7 | )% | (10.8 | )% | |||||||||||||
APRU data (in euro) | 5.4 | 5.5 | 6.0 | 1.6 | % | 9.9 | % | |||||||||||||
% of non-P2P SMS revenues over data revenues | 60.6 | % | 66.6 | % | 74.6 | % | 6.0 p. | p. | 7.9 p. | p. |
Evolution of competitive position | |||||
Mobile Market Share (1) | |||||
Telefónica | 2012 | 2013 | 2014 | ||
Spain | 36.2% | 33.9% | 31.2% | ||
United Kingdom | 26.6% | 26.5% | 26.9% | ||
Germany (2) | 16.7% | 16.9% | 36.9% | ||
Brazil | 29.1% | 28.6% | 28.4% | ||
Argentina | 29.7% | 31.4% | 31.3% | ||
Chile | 38.8% | 38.7% | 39.4% | ||
Peru | 60.0% | 59.7% | 55.2% | ||
Colombia | 21.6% | 24.0% | 23.5% | ||
Venezuela | 32.9% | 32.0% | 33.7% | ||
Mexico | 19.2% | 18.5% | 20.8% | ||
Central America | 29,7% | 31.8% | 31.5% | ||
Ecuador | 29.3% | 32.6% | 27.9% | ||
Uruguay | 37.4% | 35.8% | 34.4% | ||
(1) Company estimation. | |||||
(2)Germany in 2014 includes E-Plus. |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 1,827.5 | 3,672.4 | 3,853.1 | 101.0 | % | 4.9 | % | |||||||||||||
Internet and data accesses | 1,754.7 | 4,496.4 | 4,537.4 | 156.2 | % | 0.9 | % | |||||||||||||
Narrowband accesses | 137.3 | 503.2 | 435.4 | n.s. | (13.5 | )% | ||||||||||||||
Broadband accesses | 1,589.1 | 3,964.9 | 4,071.8 | 149.5 | % | 2.7 | % | |||||||||||||
Other accesses(2) | 28.3 | 28.3 | 30.3 | 0.0 | % | 6.9 | % | |||||||||||||
Mobile accesses | 44,095.0 | 46,675.5 | 48,276.4 | 5.9 | % | 3.4 | % | |||||||||||||
Pre-pay accesses | 23,098.5 | 23,994.9 | 23,800.3 | 3.9 | % | (0.8 | )% | |||||||||||||
Contract accesses | 20,996.5 | 22,680.6 | 24,476.1 | 8.0 | % | 7.9 | % | |||||||||||||
Pay TV accesses | 137.6 | 206.4 | 219.0 | 50.0 | % | 6.1 | % | |||||||||||||
Final clients accesses | 47,814.9 | 55,050.6 | 56,885.9 | 15.1 | % | 3.3 | % | |||||||||||||
Wholesale accesses(3) | 1,425.2 | 1,247.7 | 1,213.2 | (12.5 | )% | (2.8 | )% | |||||||||||||
Total accesses | 49,240.1 | 56,298.3 | 58,099.1 | 14.3 | % | 3.2 | % |
Evolution of competitive position | |||||
DSL Market Share (1) | |||||
Telefónica | 2012 | 2013 | 2014 | ||
Spain | 48.8% | 47.4% | 45.1% | ||
Brazil | 18.8% | 16.3% | 16.4% | ||
Argentina | 30.9% | 30.5% | 30.3% | ||
Chile | 41.2% | 40.2% | 39.8% | ||
Colombia | 18.1% | 18.7% | 18.8% | ||
(1) Company estimation. |
Market Share Mobile Business(1) | ||||||||||||
At December 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
United Kingdom | 26.2 | % | 26.6 | % | 26.6 | % | ||||||
Germany | 14.6 | % | 15.7 | % | 16.1 | % | ||||||
Czech Republic | 39.2 | % | 38.5 | % | 38.0 | % | ||||||
Ireland | 32.3 | % | 32.0 | % | 33.2 | % | ||||||
Slovakia | 9.8 | % | 14.7 | % | 18.3 | % | ||||||
ACCESSES | |||||
Thousands of accesses | 2012 | 2013 | 2014 | %YoY 12/13 | %YoY 13/14 |
Fixed telephony accesses (1) | 11,723.0 | 11,089.8 | 10,447.8 | (5.4%) | (5.8%) |
Naked ADSL | 25.0 | 22.8 | 21.3 | (9.1%) | (6.6%) |
Internet and data accesses | 5,779.3 | 5,899.0 | 5,928.7 | 2.1% | 0.5% |
Narrowband | 54.0 | 38.5 | 30.9 | (28.7%) | (19.6%) |
Broadband (2) | 5,709.3 | 5,846.8 | 5,885.9 | 2.4% | 0.7% |
Other (3) | 16.0 | 13.7 | 11.9 | (14.2%) | (13.7%) |
Mobile accesses | 20,608.7 | 19,002.1 | 17,575.4 | (7.8%) | (7.5%) |
Prepay | 5,180.5 | 4,262.7 | 3,328.1 | (17.7%) | (21.9%) |
Contract (4) | 15,428.2 | 14,739.3 | 14,247.3 | (4.5%) | (3.3%) |
Pay-TV (5) | 710.7 | 672.7 | 1,884.7 | (5.4%) | 180.2% |
WLR (6) | 481.2 | 525.8 | 570.6 | 9.3% | 8.5% |
Unbundled loops | 3,262.0 | 3,787.1 | 4,087.3 | 16.1% | 7.9% |
Shared ULL | 183.5 | 130.6 | 94.1 | (28.9%) | (27.9%) |
Full ULL (7) | 3,078.5 | 3,656.5 | 3,993.3 | 18.8% | 9.2% |
Wholesale ADSL | 652.3 | 676.8 | 707.8 | 3.8% | 4.6% |
Other (8) | 0.5 | 0.4 | 0.3 | (23.9%) | (28.5%) |
Final Clients Accesses | 38,821.7 | 36,663.6 | 35,836.7 | (5.6%) | (2.3%) |
Wholesale Accesses | 4,396.0 | 4,990.1 | 5,366.0 | 13.5% | 7.5% |
Total Accesses | 43,217.8 | 41,653.6 | 41,202.7 | (3.6%) | (1.1%) |
Notes: | |||||
(1) PSTN (including public use telephony) x1; ISDN basic access x1; ISDN primary access; 2/6 digital access x30. Company’s accesses for internal use included. Includes VoIP and Naked ADSL. | |||||
(2) Includes ADSL, satellite, optical fiber, cable modem and broadband circuits. | |||||
(3) Leased lines. | |||||
(4) In the first quarter of 2014, 569 thousand M2M inactive accesses were disconnected. | |||||
(5) Since the second quarter of 2014, Pay-TV accesses include 131 thousand “TV Mini” customers. | |||||
(6) Wholesale Line Rental. | |||||
(7) Includes naked shared loops. (8) Wholesale circuits. |
Percent Change | ||||||||||||||||||||||||||||
Year ended December 31, | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||||
2009 | 2010 | 2011 | Reported | Excl. FX(1) | Reported | Excl. FX(1) | ||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||
Revenues | 13,954 | 15,724 | 15,524 | 12.7 | % | 10.1 | % | (1.3 | )% | (1.0 | )% | |||||||||||||||||
OIBDA | 3,999 | 4,080 | 4,233 | 2.0 | % | (0.6 | )% | 3.8 | % | 3.7 | % | |||||||||||||||||
Margin OIBDA | 28.7 | % | 25.9 | % | 27.3 | % | (2.7) p. | p. | (2.6) p. | p. | 1.3 p. | p. | 1.2 p. | p. | ||||||||||||||
Depreciation and amortization | (2,988 | ) | (3,201 | ) | (3,117 | ) | 7.1 | % | 4.4 | % | (2.6 | )% | (2.5 | )% | ||||||||||||||
Operating income | 1,011 | 879 | 1,116 | (13.1 | )% | (16.8 | )% | 27.0 | % | 26.5 | % |
CONSOLIDATED RESULTS | |||||
Millions of euros | |||||
TELEFÓNICA SPAIN | 2012 | 2013 | 2014 | %YoY 12/13 | %YoY 13/14 |
Revenues | 14,996 | 12,959 | 12,023 | (13.6%) | (7.2%) |
Wireless Business | 6,464 | 5,121 | 4,556 | (20.8%) | (11.0%) |
Mobile service revenues | 5,453 | 4,580 | 3,888 | (16.0%) | (15.1%) |
Wireline Business | 9,541 | 8,861 | 8,543 | (7.1%) | (3.6%) |
OIBDA | 6,815 | 6,340 | 5,671 | (7.0%) | (10.6%) |
OIBDA Margin | 45.4% | 48.9% | 47.2% | 3.5 p.p. | (1.8 p.p.) |
Depreciation and amortization | (2,063) | (1,903) | (1,805) | (7.7%) | (5.1%) |
Operating Income (OI) | 4,752 | 4,437 | 3,866 | (6.6%) | (12.9%) |
CapEx | 1,692 | 1,529 | 1,732 | (9.6%) | 13.3% |
OpCF (OIBDA-CapEx) | 5,123 | 4,811 | 3,939 | (6.1%) | (18.1%) |
TELEFÓNICA SPAIN | 2012 | 2013 | 2014 | %YoY 12/13 | %YoY 13/14 |
Voice Traffic (Million minutes) | 36,382 | 34,428 | 35,600 | (5.4%) | 3.4% |
ARPU (EUR) (1) | 20.6 | 17.7 | 15.9 | (14.3%) | (10.1%) |
Prepay | 8.8 | 7.3 | 6.2 | (17.8%) | (14.5%) |
Contract (2) | 28.6 | 24.0 | 20.6 | (16.2%) | (14.2%) |
Data ARPU (EUR) (1) | 6.5 | 6.8 | 7.0 | 4.4% | 3.6% |
% non-SMS over data revenues | 85.2% | 92.1% | 95.0% | 7.0 p.p. | 2.8 p.p. |
Notes: | |||||
(1) Impacted by the disconnection of 569 thousand inactive M2M accesses in the first quarter of 2014. | |||||
(2) Excludes M2M. |
· | Supplies (2,592 million euros) increased 4.2% year-on-year in 2014, mainly reflecting higher spending on handsets and TV content. |
· | Personnel expenses(2,139 million euros) increased 1.2% year-on-year in 2014, primarily due to the end of the redundancy program in 2013 and the Company’s contribution to its pension plan in July 2014, following its temporary freeze from April 2013 to July 2014. At December 31, 2014, Telefónica Spain’s headcount totaled 30,020 employees compared to 29,764 at December 31, 2013. |
· | Other expenses (2,256 million euros) fell by 8.5% year-on-year in 2014, reflecting the savings resulting from the simplification processes, redefinition of distribution channels and in-sourcing of activities, which more than offset the expenses related to the increased commercial effort in advertising and handset sales. |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 0.0 | 86.7 | 216.1 | n.a. | n.s. | |||||||||||||||
Internet and data accesses | 591.5 | 671.6 | 620.3 | 13.5 | % | (7.6 | )% | |||||||||||||
Broadband accesses | 591.5 | 671.6 | 620.3 | 13.5 | % | (7.6 | )% | |||||||||||||
Mobile accesses | 21,299.3 | 22,211.5 | 22,167.5 | 4.3 | % | (0.2 | )% | |||||||||||||
Pre-pay accesses | 11,740.3 | 11,712.3 | 11,227.3 | (0.2 | )% | (4.1 | )% | |||||||||||||
Contract accesses | 9,558.9 | 10,499.2 | 10,940.3 | 9.8 | % | 4.2 | % | |||||||||||||
Final clients accesses | 21,890.8 | 22,969.8 | 23,003.9 | 4.9 | % | 0.1 | % | |||||||||||||
Wholesale accesses (2) | 0.0 | 0.0 | 26.7 | n.a. | n.a. | |||||||||||||||
Total accesses | 21,890.8 | 22,969.8 | 23,030.7 | 4.9 | % | 0.3 | % |
Excluding handset sales, revenues in 2013 amounted to 12,417 million euros (-11.2% year-on-year). Excluding the impact of regulation (which imposed interconnection and |
Revenues from the fixed business fell 7.1% year-on-year in 2013, due to lower access and voice revenues, primarily driven by |
· | Mobile revenues fell by 20.8% year-on-year in 2013. Mobile service revenue declined by 16.0% year-on-year in 2013 explained by ARPU decline. |
Year ended December 31, | Percent Change | |||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||||||||||
Euro | Local Currency | Euro | Local Currency | |||||||||||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||||||||||
Revenues | 6,512 | 7,201 | 6,926 | 10.6 | % | 6.5 | % | (3.8 | )% | (2.7 | )% | |||||||||||||||||
Service revenues | 5,936 | 6,513 | 6,198 | 9.7 | % | 5.6 | % | (4.8 | )% | (3.7 | )% | |||||||||||||||||
OIBDA | 1,680 | 1,830 | 1,836 | 9.0 | % | 4.9 | % | 0.3 | % | 1.5 | % | |||||||||||||||||
OIBDA Margin | 25.8 | % | 25.4 | % | 26.5 | % | (0.4 | ) p.p. | (0.4 | ) p.p. | 1.1 p. | p. | 1.1 p. | p. | ||||||||||||||
CAPEX | 602 | 717 | 732 | 19.1 | % | 14.7 | % | 2.0 | % | 3.3 | % | |||||||||||||||||
OpCF (OIBDA �� CAPEX) | 1,078 | 1,113 | 1,104 | 3.3 | % | (0.5 | )% | (0.8 | )% | 0.3 | % |
· | Telefónica Spain revenue reduction is mainly due to ARPU reductions across services reflecting lower prices of the renewed portfolio and lower customers consumption, and also, as a consequence of declines in accesses (-4% year-on-year), as a consequence of the high competitive pressure in the market. |
· | Supplies declined 23.9% year-on-year in 2013 to 2,486 million euros, mainly due to lower handset costs as a consequence of the new commercial policy and lower mobile interconnection costs. |
· | Personnel expenses amounted to 2,113 million euros in 2013, down 6.1% year-on-year as a result of the savings derived from the redundancy program and from the temporary removal of Telefónica Spain’s contribution to the pension plan beginning in April 2013. At December 31, 2013, Telefónica Spain’s headcount totaled 29,764 employees, compared to 31,434 at December 31, 2012. |
· | Other expenses amounted to 2,464 million euros in 2013, down by 20.9% compared to 2012 due to lower commercial expenses and the savings from Telefónica Spain’s simplification process, as well as the redefinition of the distribution channel and call centers and the in-sourcing of activities. |
As of or for the year ended December 31, | Percent Change (local currency) | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
Traffic (millions of minutes) | 53,856 | 58,143 | 52,250 | 8.0 | % | (10.1 | )% | |||||||||||||
ARPU (in euro) | 24.7 | 25.1 | 23.2 | (2.1 | )% | (6.6 | )% | |||||||||||||
Pre-pay | 12.3 | 11.8 | 10.3 | (8.2 | )% | (11.4 | )% | |||||||||||||
Contract | 40.8 | 40.6 | 37.1 | (4.2 | )% | (7.6 | )% | |||||||||||||
ARPU data (in euro) | 9.3 | 10.1 | 10.5 | 5.3 | % | 5.1 | % | |||||||||||||
% of non-P2P SMS revenues over data revenues | 27.4 | % | 32.8 | % | 40.5 | % | 5.4 p. | p. | 7.7 p. | p. |
ACCESSES | |||||
Thousands of accesses | 2012 | 2013 | 2014 | %YoY 12/13 | %YoY 13/14 |
Fixed telephony accesses (1) | 377.4 | 208.2 | 228.0 | (44.8%) | 9.5% |
Internet and data accesses | 560.1 | 14.8 | 19.2 | (97.4%) | 29.8% |
Broadband | 560.1 | 14.8 | 19.2 | (97.4%) | 29.8% |
Mobile accesses | 22,864.2 | 23,649.0 | 24,479.1 | 3.4% | 3.5% |
Prepay | 10,962.9 | 10,764.7 | 10,761.2 | (1.8%) | (0.0%) |
Contract | 11,901.3 | 12,884.3 | 13,717.9 | 8.3% | 6.5% |
Final Clients Accesses | 23,801.7 | 23,872.0 | 24,726.4 | 0.3% | 3.6% |
Wholesale Accesses (2) | 40.5 | 31.6 | - | (22.1%) | - |
Total Accesses | 23,842.2 | 23,903.6 | 24,726.4 | 0.3% | 3.4% |
Notes: | |||||
(1) PSTN (including public use telephony) x1; ISDN basic access x1; ISDN primary access; 2/6 digital access x30. Company’s accesses for internal use included. Includes VoIP and Naked ADSL. | |||||
(2) From the first quarter of 2014, the company stopped offering a wholesale service. |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 0.0 | 1,916.4 | 2,055.1 | n.a. | 7.2 | % | ||||||||||||||
Internet and data accesses | 285.1 | 2,914.7 | 2,922.3 | n.s. | 0.3 | % | ||||||||||||||
Narrowband accesses | 0.0 | 385.7 | 334.6 | n.a. | (13.2 | )% | ||||||||||||||
Broadband accesses | 285.1 | 2,529.1 | 2,587.7 | n.s. | 2.3 | % | ||||||||||||||
Mobile accesses | 15,507.4 | 17,049.2 | 18,380.1 | 9.9 | % | 7.8 | % | |||||||||||||
Pre-pay accesses | 7,807.0 | 8,795.2 | 9,144.5 | 12.7 | % | 4.0 | % | |||||||||||||
Contract accesses | 7,700.4 | 8,254.0 | 9,235.7 | 7.2 | % | 11.9 | % | |||||||||||||
Pay TV accesses | 0.0 | 77.2 | 83.3 | n.a. | 7.9 | % | ||||||||||||||
Final clients accesses | 15,792.5 | 21,957.5 | 23,440.9 | 39.0 | % | 6.8 | % | |||||||||||||
Wholesale accesses(2) | 1,316.8 | 1,116.5 | 1,042.4 | (15.2 | )% | (6.6 | )% | |||||||||||||
Total accesses | 17,109.3 | 23,074.0 | 24,483.2 | 34.9 | % | 6.1 | % |
Year ended December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||
Revenues | 3,746 | 4,826 | 5,035 | 28.9 | % | 4.3 | % | |||||||||||||
Service revenues | 2,861 | 2,932 | 2,946 | 2.5 | % | 0.5 | % | |||||||||||||
OIBDA | 918 | 944 | 1,219 | 2.8 | % | 29.1 | % | |||||||||||||
OIBDA Margin | 24.5 | % | 19.6 | % | 24.2 | % | (4.9) p. | p. | 4.7 p. | p. | ||||||||||
CAPEX | 796 | 2,057 | 558 | n. | a. | (72.9 | )% | |||||||||||||
OpCF (OIBDA – CAPEX) | 122 | (1,113 | ) | 662 | c. | s. | (159.5 | )% |
CONSOLIDATED RESULTS | |||||||
Millions of euros | %YoY 12/13 | %YoY 13/14 | |||||
TELEFÓNICA UNITED KINGDOM | 2012 | 2013 | 2014 | € | LC | € | LC |
Revenues | 7,042 | 6,692 | 7,062 | (5.0%) | (0.5%) | 5.5% | 0.2% |
Mobile service revenues | 6,060 | 5,461 | 5,397 | (9.9%) | (5.7%) | (1.2%) | (6.2%) |
OIBDA | 1,602 | 1,637 | 1,744 | 2.2% | 7.0% | 6.5% | 1.1% |
OIBDA Margin | 22.7% | 24.5% | 24.7% | 1.7 p.p. | 1.7 p.p. | 0.2 p.p. | 0.2 p.p. |
Depreciation and amortization | (995) | (1,016) | (1,121) | 2.1% | 6.9% | 10.3% | 4.7% |
Operating Income (OI) | 607 | 621 | 623 | 2.3% | 7.2% | 0.3% | (4.7%) |
CapEx | 748 | 1,385 | 755 | 85.3% | 94.0% | (45.5%) | (48.3%) |
OpCF (OIBDA-CapEx) | 854 | 252 | 989 | (70.5%) | (69.1%) | n.m. | n.m. |
· | Mobile service revenues reached 5,397 million euros, down 1.2% year-on-year in reported terms (-6.2% excluding foreign exchange rate effects) negatively affected by the “Refresh” model, mobile termination rate cuts and roaming regulation. Excluding the impacts of, mobile termination rate cuts, (+0.4 p.p.), roaming regulation (+0.5 p.p.) and the new commercial model “Refresh” (+6.5 p.p.), mobile service revenues would have increased by 1.3% year-on-year as a result of the growth in mobile accesses and price stabilization. The “Refresh” model translates into more revenue from handset sales (even where the number of units sold are not increased), since handset sales are fully recognized upfront. |
· | Non-SMS data revenues rose 23.9% year-on-year (+17.6% year-on-year excluding foreign exchange rate effects), accounting for 57.9% of data revenues (+8.0 p.p. year-on-year). |
· | Data revenue recorded an increase of 1.5% year-on-year in 2014. Data revenue in 2014 accounted for 57% of mobile service revenue, 4 percentage points more than 2013. |
TELEFÓNICA UNITED KINGDOM | 2012 | 2013 | 2014 | %YoY LC 12/13 | %YoY LC 13/14 |
Voice Traffic (Million minutes) | 48,250 | 48,479 | 49,096 | 0.5% | 1.3% |
ARPU (EUR) | 22.5 | 19.6 | 18.8 | (8.8%) | (8.8%) |
Prepay | 9.6 | 7.7 | 7.3 | (16.0%) | (9.3%) |
Contract (1) | 40.3 | 35.0 | 33.1 | (9.1%) | (10.1%) |
Data ARPU (EUR) | 11.4 | 10.4 | 10.8 | (4.5%) | (1.6%) |
% non-SMS over data revenues | 46.8% | 50.0% | 57.9% | 3.2 p.p. | 8.0 p.p. |
Notes: | |||||
(1) Excludes M2M. |
As of or for the year ended December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
Traffic (millions of minutes) | 23,257 | 25,543 | 27,993 | 9.8 | % | 9.6 | % | |||||||||||||
ARPU (in euro) | 15.6 | 14.8 | 13.6 | (5.5 | )% | (7.8 | )% | |||||||||||||
Pre-pay | 5.7 | 6.1 | 5.7 | 7.8 | % | (7.0 | )% | |||||||||||||
Contract | 26.1 | 23.8 | 21.9 | (8.8 | )% | (8.4 | )% | |||||||||||||
APRU data (in euro) | 4.7 | 5.0 | 5.6 | 6.1 | % | 13.2 | % | |||||||||||||
% of non-P2P SMS revenues over data revenues | 36.7 | % | 41.9 | % | 50.4 | % | 5.2 p. | p. | 8.5 p. | p. |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Fixed telephony accesses(1) | 1,770.6 | 1,669.2 | 1,581.9 | (5.7 | )% | (5.2 | )% | |||||||||||||
Free ADSL accesses | 62.1 | 163.7 | 237.4 | 163.6 | % | 45.0 | % | |||||||||||||
VOIP accesses | 16.9 | 38.6 | 52.1 | 128.4 | % | 35.0 | % | |||||||||||||
Internet and data accesses | 848.7 | 898.8 | 970.6 | 5.9 | % | 8.0 | % | |||||||||||||
Narrowband accesses | 137.3 | 117.5 | 100.7 | (14.4 | )% | (14.3 | )% | |||||||||||||
Broadband accesses | 683.1 | 753.0 | 839.6 | 10.2 | % | 11.5 | % | |||||||||||||
Other accesses (2) | 28.3 | 28.3 | 30.3 | 0.0 | % | 6.9 | % | |||||||||||||
Mobile accesses | 4,944.6 | 4,838.6 | 4,941.7 | (2.1 | )% | 2.1 | % | |||||||||||||
Pre-pay accesses | 2,130.2 | 1,975.0 | 1,892.4 | (7.3 | )% | (4.2 | )% | |||||||||||||
Contract accesses | 2,814.4 | 2,863.6 | 3,049.3 | 1.7 | % | 6.5 | % | |||||||||||||
Pay TV accesses | 137.6 | 129.2 | 135.6 | (6.1 | )% | 5.0 | % | |||||||||||||
Final clients accesses | 7,701.5 | 7,535.8 | 7.629.8 | (2.2 | )% | 1.2 | % | |||||||||||||
Wholesale accesses | 108.4 | 131.2 | 144.1 | 21.0 | % | 9.8 | % | |||||||||||||
Total accesses | 7,810.0 | 7,667.0 | 7,773.9 | (1.8 | )% | 1.4 | % |
Supplies increased by 3.4% year-on-year in 2014 in reported terms to 3,520 million euros, impacted by the foreign exchange rate (+5.2 p.p.). Excluding this impact, supplies would have decreased by 1.8%, mainly due to lower interconnection costs. |
Personnel expenses were down by 15.3% year-on-year in 2014, amounting to 460 million euros, impacted by the exchange rate (+4.3 p.p.). Excluding this impact, personnel costs would have been down by 19.6%, as a result of the outsourcing of the customer service facility. Personnel expenses were also affected by restructuring costs (5 million euros in 2014 and 48 million euros in 2013). |
· | Other expenses were 1,521 million euros in 2014, a 16.1% year-on-year increase in reported terms, with an exchange rate impact of 5.9 percentage points. Excluding this impact, other expenses would have increased by 10.3% as a result of the outsourcing of the customer service facility. |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mobile accesses | 552.9 | 880.4 | 1,164.1 | 59.2 | % | 32.2 | % | |||||||||||||
Pre-pay accesses | 357.2 | 545.9 | 666.1 | 52.8 | % | 22.0 | % | |||||||||||||
Contract accesses | 195.6 | 334.5 | 498.0 | 71.0 | % | 48.9 | % | |||||||||||||
Total accesses | 552.9 | 880.4 | 1,164.1 | 59.2 | % | 32.2 | % |
· | Mobile service revenues in 2013 totaled 5,461 million euros, a decrease of 9.9% year-on-year in reported terms (-5.7% excluding the impact of exchange rate differences) negatively affected by the “Refresh” model, mobile termination rate cuts and roaming regulation. Excluding the impact of mobile termination rate cuts (+2.4 p.p.) and roaming regulation (+0.6 p.p.), as well as the impact of the “Refresh” model (+1.3 p.p.), the mobile service revenues would have decreased 1.3% year-on-year due to the pressure on ARPU. |
· | Non-SMS data revenues grew 0.8% year-on-year (+5.5% year-on-year excluding exchange rate differences) accounting for 50% of data revenues in 2013 (+3 p.p. year-on-year). |
· | The decline of SMS volumes led data revenue to decline 1.2% year-on-year in 2013. In 2013, data revenues accounted for 53% of mobile service revenues, an increase of 2 percentage points compared to the previous year. |
· | ARPU fell 12.9% year-on-year (-8.8% year-on-year excluding the impact of the exchange rate differences) negatively impacted by the “Refresh” model, as well as mobile termination rate cuts and roaming regulation. Excluding the impact of regulation, ARPU would have decreased by 5.5% year-on-year. Voice ARPU fell 17.1% in reported terms (-13.2% excluding exchange rate differences and -8.4% excluding additionally the effect of regulations). Data ARPU fell 8.8% in reported terms (-4.5% excluding exchange rate differences). |
· | Supplies amounted to 3,403 million euros, decreasing 5.8% year-on-year affected by foreign exchange rate differences (-4.4 p.p.). Excluding this effect, supplies would have decreased 1.4% mainly due to the reduction of interconnection costs. |
Year ended December 31, | Percent Change | |||||||||||||||||||
2009 (1) | 2010 (1) | 2011 (1) | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||
Revenues | 2,260 | 2,197 | 2,130 | (2.8 | )% | (3.0 | )% | |||||||||||||
Service revenues | 1,123 | 1,078 | 995 | (4.0 | )% | (7.7 | )% | |||||||||||||
OIBDA | 1,053 | 953 | 931 | (9.5 | )% | (2.3 | )% | |||||||||||||
OIBDA Margin | 46.6 | % | 43.4 | % | 43.7 | % | (3.2) p. | p. | 0.3 p. | p. | ||||||||||
CAPEX | 245 | 224 | 229 | (8.8 | )% | 2.1 | % | |||||||||||||
OpCF (OIBDA – CAPEX) | 807 | 729 | 702 | (9.7 | )% | (3.7 | )% |
· | Personnel expenses amounted to 543 million euros in 2013, a decrease of 1.6% in reported terms, affected by foreign exchange rate differences (-4.6 p.p.). Excluding this effect, personnel expenses would have increased by 3.0%, affected by 48 million euros of restructuring expenses. |
· | Other expenses were 1,310 million euros and decreased by 8.7% in reported terms, affected by foreign exchange rate differences (-4.3 p.p.). Excluding this effect these costs would have decreased 4.4%, due to lower commissions and benefits of the “Refresh” model. |
ACCESSES | |||||
Thousands of accesses | 2012 | 2013 | 2014 | %YoY 12/13 | %YoY 13/14 |
Fixed telephony accesses (1) | 2,249.0 | 2,124.9 | 2,036.4 | (5.5%) | (4.2%) |
Internet and data accesses | 2,678.9 | 2,516.1 | 2,387.0 | (6.1%) | (5.1%) |
Narrowband | 302.6 | 271.7 | 243.2 | (10.2%) | (10.5%) |
Broadband | 2,376.3 | 2,244.3 | 2,143.8 | (5.6%) | (4.5%) |
Mobile accesses | 19,299.9 | 19,401.0 | 42,124.9 | 0.5% | 117.1% |
Prepay | 9,191.3 | 9,114.9 | 23,350.7 | (0.8%) | 156.2% |
Contract | 10,108.5 | 10,286.1 | 18,774.1 | 1.8% | 82.5% |
Final Clients Accesses (2) | 24,284.9 | 24,042.0 | 46,548.3 | (1.0%) | 93.6% |
Wholesale Accesses | 1,087.9 | 1,125.0 | 1,113.3 | 3.4% | (1.0%) |
Total Accesses | 25,372.8 | 25,166.9 | 47,661.5 | (0.8%) | 89.4% |
Notes: | |||||
(1) PSTN (including public use telephony) x1; ISDN basic access x1; ISDN primary access; 2/6 digital access x30. Company’s accesses for internal use included. Includes VoIP and Naked ADSL. |
At December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Internet and data accesses | - | 11.2 | 24.2 | n. | a. | n. | s. | |||||||||||||
Broadband accesses | - | 11.2 | 24.2 | n. | a. | n. | s. | |||||||||||||
Mobile accesses | 1,714.3 | 1,695.8 | 1.622.9 | (1.1 | )% | (4.3 | )% | |||||||||||||
Pre-pay accesses | 1,022.5 | 966.5 | 870.1 | (5.5 | )% | (10.0 | )% | |||||||||||||
Contract accesses | 691.8 | 729.4 | 752.9 | 5.4 | % | 3.2 | % | |||||||||||||
Total accesses | 1,714.3 | 1,707.1 | 1,647.2 | (0.4 | )% | (3.5 | )% |
Year ended December 31, | Percent Change | |||||||||||||||||||
2009 | 2010 | 2011 | 2009 vs. 2010 | 2010 vs. 2011 | ||||||||||||||||
(in millions of euro, except percentages) | ||||||||||||||||||||
Revenues | 905 | 848 | 723 | (6.3 | )% | (14.7 | )% | |||||||||||||
Service revenues | 842 | 779 | 677 | (7.5 | )% | (13.1 | )% | |||||||||||||
OIBDA | 302 | 275 | 206 | (9.0 | )% | (25.0 | )% | |||||||||||||
OIBDA Margin | 33.4 | % | 32.4 | % | 28.5 | % | (1.0 | ) p.p. | (3.9 | ) p.p. | ||||||||||
CAPEX | 63 | 60 | 61 | (4.1 | )% | 1.4 | % | |||||||||||||
OpCF (OIBDA – CAPEX) | 239 | 214 | 145 | (10.3 | )% | (32.5 | )% |
CONSOLIDATED RESULTS | |||||
Millions of euros | |||||
TELEFÓNICA GERMANY | 2012 | 2013 | 2014 | %YoY 12/13 | %YoY 13/14 |
Revenues | 5,213 | 4,914 | 5,522 | (5.7%) | 12.4% |
Wireless Business | 3,845 | 3,673 | 4,375 | (4.5%) | 19.1% |
Mobile service revenues | 3,152 | 2,989 | 3,580 | (5.2%) | 19.8% |
Wireline Business | 1,363 | 1,235 | 1,138 | (9.4%) | (7.8%) |
OIBDA | 1,351 | 1,308 | 733 | (3.2%) | (44.0%) |
OIBDA Margin | 25.9% | 26.6% | 13.3% | 0.7 p.p. | (13.4 p.p.) |
Depreciation and amortization | (1,233) | (1,231) | (1,426) | (0.1%) | 15.7% |
Operating Income (OI) | 118 | 77 | (693) | (35.4%) | n.m. |
CapEx | 609 | 666 | 849 | 9.4% | 27.5% |
OpCF (OIBDA-CapEx) | 743 | 642 | (116) | (13.5%) | n.m. |
· | Mobile service revenues totaled 3,580 million euros in 2014, up by 19.8% year-on-year due mainly to the consolidation of the E-Plus Group since October 1, 2014 and offset in part by the lower voice and SMS revenues during the rest of the year. Telefónica Germany continued to focus on data revenues, which increased 24.3% and accounted for 50.1% of mobile service revenues. Non-P2P SMS data revenues accounted for 71% of the total data revenues (+4.7 p.p. year-on-year), increasing 33% year-on-year. |
· | Fixed telephony revenues fell by 7.8% year-on-year in 2014 to stand at 1,138 million euros. The main reason for this was a decline in fixed broadband customers (partially mitigated by VDSL growth) and transit business revenues, impacting slightly on the margin. |
TELEFÓNICA GERMANY | 2012 | 2013 | 2014 | %YoY 12/13 | %YoY 13/14 |
Voice Traffic (Million minutes) | 29,519 | 30,152 | 41,186 | 2.1% | 36.6% |
ARPU (EUR) | 13.8 | 12.7 | 11.8 | (7.9%) | (7.1%) |
Prepay | 5.5 | 5.1 | 5.4 | (6.8%) | 4.5% |
Contract (1) | 21.5 | 19.6 | 18.4 | (9.0%) | (5.9%) |
Data ARPU (EUR) | 6.2 | 6.2 | 5.9 | 0.7% | (3.9%) |
% non-SMS over data revenues | 56.7% | 66.5% | 71.2% | 9.8 p.p. | 4.7 p.p. |
Notes: | |||||
(1) Excludes M2M. |
· | Supplies stood at 2,144 million euros, up by 9.5% year-on-year due mainly to the consolidation of the E-Plus Group since October 1, 2014. There were lower interconnection costs arising from a decrease in SMS volumes and lower interconnection rates, partially offset by higher handset purchases (mainly towards the end of the year). |
· | Personnel expenses amounted to 828 million euros during the year, up by 97.7% due mainly to the consolidation of the E-Plus Group since October 1, 2014. In addition, personnel expenses were impacted by the recognition of an expenditure of 321 million euros, related to the provision for the restructuring process resulting from the integration of the E-Plus Group. |
· | Other expenses amounted to 1,923 million euros during the year, up by 37.5% mainly impacted by the change of perimeter and the recognition of an expenditure of 87 million euros related to the provision for the restructuring process resulting from the integration of the E-Plus Group. Excluding these impacts, other expenses would have been impacted by higher commercial costs. |
· | Mobile service revenues stood at 2,989 million euros in 2013, a year-on-year decrease of 5.2%. Excluding the impact of the reduction in termination rates, mobile service revenues would have fallen by 1.5% year-on-year in 2013, mainly as a result of the increase in tariff renewals in the customer base and the lower volume of SMS traffic, which were not offset by the growth in data revenues. Telefónica Germany continued to monetize its data revenues with an increase in non-P2P SMS data revenue of 21.7% during the year, accounting for 67% of total data revenue (+10 p.p. year-on-year). As a result, mobile data revenues in 2013 increased 3.7% year-on-year to account for 48% of mobile service revenues (+4 p.p. year-on-year). |
· | Fixed telephony revenues decreased 9.4% year-on-year in 2013, to 1,235 million euros despite the increasing adoption of VDSL. This is mainly the result of the decline in DSL customer base (mitigated by an increasing uptake of VDSL) and a further reduction of revenues from the low margin voice transit business. |
· | Supplies amounted to 1,958 million euros, decreasing 8.1% year-on-year, mainly driven by a reduction in interconnection expenses. |
· | Personnel expenses amounted to 419 million euros, decreasing 9.9% year-on-year as a result of an accumulation of activities at the end of 2012. |
· | Other expenses stood at 1,398 million euros in 2013, increasing by 5.4% year-on-year, due mainly to the higher commercial cost incurred in retention and advertising activities. |
ACCESSES | |||||
Thousands of accesses | 2012 | 2013 | 2014 | %YoY 12/13 | %YoY 13/14 |
Fixed telephony accesses (1) | 10,642.7 | 10,747.8 | 10,743.4 | 1.0% | (0.0%) |
Internet and data accesses | 3,964.3 | 4,102.0 | 4,082.6 | 3.5% | (0.5%) |
Narrowband | 137.9 | 92.1 | 73.7 | (33.2%) | (19.9%) |
Broadband (2) | 3,748.4 | 3,936.7 | 3,939.8 | 5.0% | 0.1% |
Other (3) | 78.1 | 73.2 | 69.0 | (6.2%) | (5.8%) |
Mobile accesses | 76,137.3 | 77,240.2 | 79,932.1 | 1.4% | 3.5% |
Prepay | 57,335.1 | 53,551.9 | 51,582.4 | (6.6%) | (3.7%) |
Contract | 18,802.2 | 23,688.3 | 28,349.7 | 26.0% | 19.7% |
Pay-TV | 601.2 | 640.1 | 770.6 | 6.5% | 20.4% |
Final Clients Accesses | 91,345.4 | 92,730.0 | 95,528.6 | 1.5% | 3.0% |
Wholesale Accesses | 24.4 | 18.8 | 25.9 | (22.8%) | 37.5% |
Total Accesses | 91,369.8 | 92,748.9 | 95,554.5 | 1.5% | 3.0% |
Notes: | |||||
(1) PSTN (including public use telephony) x1; ISDN basic access x1; ISDN primary access; 2/6 digital access x30. Company’s accesses for internal use included. Voice fixed wireless accesses included. | |||||
(2) Includes ADSL, optical fiber, cable modem and broadband circuits. | |||||
(3) Retail circuits other than broadband. |
CONSOLIDATED RESULTS | |||||||
Millions of euros | %YoY 12/13 | %YoY 13/14 | |||||
TELEFÓNICA BRAZIL | 2012 | 2013 | 2014 | € | LC | € | LC |
Revenues | 13,618 | 12,217 | 11,231 | (10.3%) | 2.2% | (8.1%) | 0.5% |
Wireless Business | 8,573 | 8,092 | 7,618 | (5.6%) | 7.5% | (5.9%) | 2.9% |
Mobile service revenues | 8,167 | 7,608 | 7,228 | (6.8%) | 6.1% | (5.0%) | 3.8% |
Wireline Business | 5,045 | 4,125 | 3,613 | (18.2%) | (6.8%) | (12.4%) | (4.2%) |
OIBDA | 5,161 | 3,940 | 3,543 | (23.7%) | (13.0%) | (10.1%) | (1.7%) |
OIBDA Margin | 37.9% | 32.3% | 31.5% | (5.6 p.p.) | (5.6 p.p.) | (0.7 p.p.) | (0.7 p.p.) |
Depreciation and amortization | (2,318) | (2,109) | (1,762) | (9.0%) | 3.7% | (16.5%) | (8.7%) |
Operating Income (OI) | 2,843 | 1,831 | 1,781 | (35.6%) | (26.6%) | (2.7%) | 6.3% |
CapEx | 2,444 | 2,127 | 2,933 | (13.0%) | (0.9%) | 37.9% | 50.7% |
OpCF (OIBDA-CapEx) | 2,717 | 1,813 | 610 | (33.3%) | (24.0%) | (66.4%) | (63.2%) |
· | Revenues from the mobile business totaled 7,618 million euros in 2014, falling by 5.9%. Excluding the effect of exchange rate differences, revenues from the mobile business would have increased by 2.9% due to the positive evolution of service revenues (up 3.8% year-on-year) as a result of the good performance of outbound revenues, which in turn increased as a result of an increase in the customer base and the increased proportion of data revenues. This trend was partially offset by falling handset sales (an 11.9% decline year-on-year) and lower inbound revenues affected by lower interconnection tariffs. |
· | Fixed telephony revenues totaled 3,613 million euros, down by 12.4%, although excluding the effect of exchange rates the decrease would have been 4.2%. This decrease was mainly due to the reduction of the fixed-mobile retail rate and the fixed by mobile substitution, bringing down our fixed telephony revenues despite a stable fixed customer base and greater minutes packages. This trend was partially offset by the increase of the broadband and new services revenues that grew 4.0% helped by the increase of accesses connected with fiber, with a higher ARPU, and the growth of the Pay-TV accesses. |
TELEFÓNICA BRAZIL | 2012 | 2013 | 2014 | %YoY 12/13 | %YoY 13/14 |
Voice Traffic (Million minutes) | 113,955 | 115,698 | 127,412 | 1.5% | 10.1% |
ARPU (EUR) | 8.9 | 8.0 | 7.3 | 2.3% | (0.6%) |
Prepay | 5.0 | 4.5 | 3.9 | 1.5% | (4.3%) |
Contract (1) | 23.1 | 18.8 | 15.7 | (7.3%) | (8.7%) |
Data ARPU (EUR) | 2.4 | 2.5 | 2.6 | 18.9% | 16.0% |
% non-SMS over data revenues | 62.0% | 67.0% | 77.4% | 5.0 p.p. | 10.4 p.p. |
Notes: | |||||
(1) Excludes M2M. |
· | Supplies (2,680 million euros) were down by 14.3% in 2014, with an impact of 8 percentage points due to the exchange rate effect. Excluding this impact, supply costs would have fallen by 6.3% due to lower interconnection expenditure associated with regulatory changes and lower handset costs. |
· | Personnel expenses (976 million euros) were down by 5.8% in 2014, with an impact of 8.8 percentage points due to the exchange rate effect. Excluding this impact and the recognition in 2014 of expenditure on the global restructuring program, in accordance with the simplification initiatives the Group is implementing to meet its |
· | Other expenses (4,292 million euros) were down by 2.7% in 2014, with an impact of 9.1 percentage points due to the exchange rate effect. Excluding this effect, other operating expenses would have increased by 6.4%, driven by higher commercial and fiber acquisition costs, higher network deployment and fixed/mobile system improvement costs. |
· | 2013 wireless business revenues amounted to 8,092 million euros, down 5.6%. Excluding the effect of exchange rate differences, however, they would have grown 7.5%, boosted by handset sales revenues (up 35.4% year-on-year). This increase was due to the higher weight of smartphone sales and the growth of service revenues (up 6.1% year-on-year) as a result of the growth in outgoing service revenues, which was attributable to the growth of the customer base and the greater weighting of data revenues; all of which was partially offset by a reduction in mobile termination rates, which had an adverse impact on incoming revenues. |
· | Revenues from the fixed business amounted to 4,125 million euros, down 18.2%. Excluding the effect of exchange rate differences, they would have decreased by 6.8%, affected by the reduction in the fixed-mobile retail tariff as well as by intense competition in the fixed broadband and Pay-TV businesses. |
· | Supplies amounted to 3,128 million euros, increasing 1.6% year-on-year in reported terms and 15.8% in local currency, mainly due to higher content costs and higher site lease costs for the deployment of towers and due to our sale and leaseback of towers; |
· | Personnel expenses amounted to 1,036 million euros in 2013, down 7.2% year-on-year in reported terms and increasing 5.7% in local currency affected by personnel restructuring costs (51 million euros); and |
· | Other expenses amounted to 4,411 million euros, a decrease of 11.4% compared to 2012 in reported terms, with an increase of 0.9% in local currency mainly due to expenses related to customer service, associated with higher commercial activity. |
ACCESSES | |||||
Thousands of accesses | 2012 | 2013 | 2014 | %YoY 12/13 | %YoY 13/14 |
Fixed telephony accesses (1) (2) (3) | 13,510.7 | 13,778.5 | 13,374.4 | 2.0% | (2.9%) |
Internet and data accesses | 4,768.2 | 5,137.7 | 5,433.8 | 7.8% | 5.8% |
Narrowband | 71.2 | 33.4 | 25.2 | (53.1%) | (24.5%) |
Broadband (4) | 4,667.0 | 5,074.9 | 5,379.4 | 8.7% | 6.0% |
Other (5) | 30.0 | 29.4 | 29.2 | (1.9%) | (0.6%) |
Mobile accesses | 100,458.2 | 107,266.9 | 110,346.5 | 6.8% | 2.9% |
Prepay (6)(7) | 79,806.4 | 84,524.1 | 86,698.0 | 5.9% | 2.6% |
Contract | 20,651.8 | 22,742.7 | 23,648.5 | 10.1% | 4.0% |
Pay-TV | 1,825.7 | 2,133.5 | 2,431.9 | 16.9% | 14.0% |
Final Clients Accesses | 120,562.6 | 128,316.6 | 131,586.6 | 6.4% | 2.5% |
Wholesale Accesses | 22.7 | 22.7 | 16.4 | 0.2% | n.m. |
Total Accesses T. Hispanoamérica | 120,585.3 | 128,339.3 | 131,603.0 | 6.4% | 2.5% |
Notes: | |||||
(1) PSTN (including public use telephony) x1; ISDN basic access x1; ISDN primary access; 2/6 Digital Access x30. Company’s accesses for internal use included. Voice fixed wireless accesses included. | |||||
(2) In the first quarter of 2014, 45 thousand fixed wireless inactive accesses were disconnected in Mexico. | |||||
(3) In 2014, fixed telephony accesses include 50 thousand “fixed wireless” additional customers in Peru. | |||||
(4) Includes ADSL, optical fiber, cable modem and broadband circuits. | |||||
(5) Retail circuits other than broadband. | |||||
(6) In the first quarter of 2014, 1.9 million inactive accesses were disconnected in Mexico. (7) In the fourth quarter of 2014, 1.8 million inactive accesses were disconnected in Central America. |
CONSOLIDATED RESULTS | |||||||
Millions of euros | %YoY 12/13 | %YoY 13/14 | |||||
TELEFÓNICA HISPANOAMÉRICA | 2012 | 2013 | 2014 | € | LC(*) | € | LC(*) |
Revenues | 16,741 | 16,855 | 13,155 | 0.7% | 16.1% | (22.0%) | 14.6% |
Wireless Business | 12,724 | 13,020 | 9,578 | 2.3% | 19.1% | (25.7%) | 16.5% |
Mobile service revenues | 11,470 | 11,510 | 8,454 | 0.4% | 15.9% | (25.7%) | 17.5% |
Wireline Business | 4,424 | 4,272 | 3,604 | (3.4%) | 7.6% | (10.1%) | 8.4% |
OIBDA | 5,983 | 5,531 | 4,068 | (7.6%) | 8.6% | (26.5%) | 14.2% |
OIBDA Margin | 35.7% | 32.8% | 30.9% | (2.9 p.p.) | (2.3 p.p.) | (1.9 p.p.) | (0.1 p.p.) |
Depreciation and amortization | (2,762) | (2,524) | (2,034) | (8.6%) | (2.0%) | (19.4%) | 5.3% |
Operating Income (OI) | 3,221 | 3,007 | 2,034 | (6.6%) | 16.8% | (32.4%) | 20.9% |
CapEx | 2,988 | 3,118 | 2,842 | 4.3% | 21.3% | (8.8%) | 42.5% |
OpCF (OIBDA-CapEx) | 2,995 | 2,413 | 1,226 | (19.4%) | 4.1% | (49.2%) | (24.1%) |
Note: | |||||||
(*) Excludes the effect of hyperinflation in Venezuela. |
· | Mobile service revenues decreased by 25.7% in reported terms, mainly due to the effect of exchange rates and hyperinflation in Venezuela (-43.2 p.p.) and the negative impact of interconnection tariffs (-2.4 p.p.). Excluding these effects, service revenues would have increased by 17.5% year-on-year. Below is additional information by country: |
· | In Argentina, mobile service revenues were down by 19.8% in reported terms. Excluding the effect of exchange rates they would have been up by 19.3% as a result of the good performance of voice and data revenues, despite the negative impact of certain billing changes implemented (which implied the billing by seconds after the first thirty seconds of the call), and the greater use and penetration of data. |
· | In Peru, mobile service revenues increased by 7.8% in reported terms. Excluding the effect of exchange rates they would have increased by 13.4%. Growth was mainly driven by the higher customer base and the increase of data scale (non-SMS data revenues were up 42.7% in the year), following the launch of LTE, helping to increase average revenue per customer. |
· | In Mexico, mobile revenues increased by 5.4% in reported terms. Excluding the effect of exchange rates they would have increased by 10%, as a result of to the new interconnection scenario which led to competitive offers that have driven up customers' voice and data consumption. |
· | In Venezuela and Central America, mobile service revenues were down by 65.1% in reported terms. Excluding the effect of exchange rates and hyperinflation in Venezuela they would have increased by 36.8%, mainly due to 25% price increases for all services as of July in Venezuela, and the expansion of mobile data services leveraged in non-SMS data revenues growth (+68%), which accounted for 76% of data revenues (+12 p.p. year-on-year). |
· | Data revenues in the segment were down by 24.4%, due to the effect of exchange rates and hyperinflation in Venezuela. Revenues would have been up by 23% excluding these effects, mainly due to the growth of non-SMS data revenues (+43.4%), which accounted for 74% of data revenues (+11 p.p. year-on-year). |
· | Fixed business revenues decreased by 10.1% in reported terms in the year, due to the effects of exchange rates (-18.5 p.p.). Excluding this effect, fixed revenues would have increased by 8.4% year-on-year in 2014, driven by broadband and new services revenues (-2.6% year-on-year in reported terms, +16.2% excluding exchange rate effects). The revenues from broadband and new services, accounted for 60% of fixed revenues (+5 p.p. year-on-year). The acceleration of growth in fixed revenues was particularly notable in Argentina, where there was a substantial increase in access and voice revenues (due to higher ARPU). |
· | Argentina: expenses stood at 2,294 million euros, a decrease of 15.9% in reported terms. Excluding the effect of exchange rates, expenses would have grown by 25.1% due to general price increases, although the company continues to make an effort to contain costs and mitigate the effects of high inflation. |
· | Peru: expenses stood at 1,718 million euros, up by 5.9% in reported terms. Excluding the effect of exchange rates, expenses would have been up by 11.4% due to higher commercial costs driven from the pressure of competition on the Peruvian market. |
· | Venezuela and Central America: expenses stood at 975 million euros, down by 61.3% in reported terms. Excluding the effect of exchange rates and hyperinflation in Venezuela, expenses would have increased by 36.7%, mainly due to higher prices in general, and the effect of greater expenditure in U.S. dollars for provided services and equipment purchases, being affected by the negative impact of the currency depreciation in Venezuela. |
· | Supplies (3,841 million euros) fell by 22.9% in 2014 in reported terms. Excluding the effect of exchange rates and hyperinflation in Venezuela (-27.6 p.p.), expenses would have grown by 4.7%. The increase is due to handsets costs caused by sales of high-end equipment which more than offset lower mobile termination rates in Chile, Colombia, Peru and Mexico. |
· | Personnel expenses (1,525 million euros) were down by 12.7% in reported terms, but would have been up by 27.6% excluding the negative impact of 39.5 percentage points caused by the effect of exchange rates and hyperinflation in Venezuela. The increase in these costs is due to a general rise of inflation in certain countries in the region. The recognition of expenditures relating to the global restructuring program, in accordance with the simplification initiatives that the Group is implementing to meet its targets, added 6.3 percentage points to the variation. |
· | Other expenses (3,976 million euros) fell by 17.7% in reported terms. Excluding the effect of exchange rates and hyperinflation in Venezuela (+38.2 p.p.) and sales of non-strategic towers in 2013 (-0.1 p.p.), these expenses increased by 21.1%, mainly due to higher voice and data traffic and higher sales campaigns costs. |
· | Exchange rate differences and hyperinflation in Venezuela (-40.1 p.p.). |
· | Recognition of the global restructuring program costs (99 million euros; -2 p.p.), in accordance with the simplification initiatives the Group is implementing to meet its targets. |
· | The non-strategic towers sales (4 million euros in 2014 and 11 million euros in 2013; -0.1 p.p.). |
· | InArgentina, mobile service revenues fell by 2.1% in reported terms, although excluding the effect of exchange rates these would have increased by 21.2% year-on-year as a result of growth of the higher customer base as well as the and higher consumption level, principally data. In this way, data revenues were up by 5.7% in reported terms, although stripping out the effect of exchange rates they would have increased by 30.8% year-on-year in 2013. These accounted for 48% of service revenues (+3 p.p. year-on-year). This increase was mainly due to higher non-SMS data revenue (60.8% year-on-year, accounting for 49% of mobile data revenues (+9 p.p. year-on-year). |
· | In Peru, mobile service revenues were up by 4.8% in reported terms, although excluding the effect of exchange rates they would have increased by 10.8% year-on-year in 2013 despite the negative impact of regulatory changes affecting fixed-mobile calls. Excluding the negative impact of the regulatory changes, the revenues would have grown 13.4% year-on-year in 2013. This increase was principally driven by data revenues, up by 28.4% in reported terms and up 35.8% year-on-year, excluding the effect of exchange rates. Additionally, these revenues continue to represent a growth opportunity as a result of the solid increase in non-SMS data revenues, up by 65% year-on-year and accounting for 81% of mobile data revenues in the year (+14 p.p. year-on-year). |
· | In Venezuela and Central America, mobile service revenues increased by 4.4% in reported terms, although excluding the effect of exchange rates and hyperinflation in Venezuela, these would have increased by 34.6% year-on-year, due to the boost of mobile data services and the growth of voice traffic. Data revenues accounted for 29.9% of mobile service revenues. This evolution is boosted by the strong increase in non-SMS data revenue (+56.1% year-on-year), accounting for 64% of data revenues (+7 p.p. year-on-year). |
· | The mobile service revenue growth was driven by the expansion of data in the region, reflected 42.8% in 2013 in non-SMS data revenues, excluding exchange rate differences and the effect of hyperinflation in Venezuela |
· | Revenues from handset sales amounted to 1,510 million euros and fell 20.3% in reported terms, mainly as a result of the impact of exchange rate differences and the effect of hyperinflation in Venezuela. Excluding these effects, growth would have been 47.4%, growing in all countries in the region as result of the growth in smartphones. |
· | Revenues from the fixed business fell 3.4% in reported terms, affected by exchange rate differences and the effect of hyperinflation in Venezuela. Excluding this effect, revenues from the fixed business increased 7.6% year-on-year. |
· | Exchange rate differences and the effect of hyperinflation in Venezuela (-14.3 p.p.); |
· | The sale of non-strategic towers (-0.1 p.p.);and |
· | Contractual changes in the commercial model for selling handsets in Chile (+1.5 p.p.). |
· | Argentina: expenses stood at 2,728 million euros, up by 2% year-on-year in reported terms. Excluding the effect of exchange rates, costs would have grown by 26.3% due to general price increases, although the company continues to make an effort to contain costs mitigating the effects of the high inflation. |
· | Peru: expenses stood at 1,621 million euros, up by 3.5% year-on-year in reported terms. Excluding the effect of exchange rates, expenses would have grown by 9.5%. Excluding the effect of exchange rates and the sale of non-strategic towers, expenses would have increased by 10.0% due to higher commercial costs related to high-value customers, higher content costs, increased personnel costs due to profit-sharing (employees receive a percentage of the net profit) and larger tax costs, due to the 1% tax on profits from the TV and broad band businesses. |
· | Venezuela and Central America: expenses stood at 2,520 million euros, up by 4.0% year-on-year in reported terms. Excluding the effect of exchange rates and hyperinflation in Venezuela, expenses would have increased by 33.6%, mainly due to the general price level, as well as due to the effect of the greater expenditure in U.S. dollars for services rendered and handset purchases, impacted by the impact of the depreciation of the Venezuelan bolívar. |
· | Supplies increased to 4,983 million euros, an increase of 8.3% year-on-year in reported terms affected by the exchange rate differences and the effect of hyperinflation in Venezuela (-14.6 p.p.) and contractual changes in the commercial model for selling handsets in Chile (+3.6 p.p.). Excluding both effects, supply cost would have grown by 19%. The decline of MTR expenses (net of exchange rate differences and the effect of hyperinflation in Venezuela) did not offset the growth in costs, due to the greater commercial activity in the mobile business, with a higher weight of smartphone sales, and at the fixed business, with higher content costs associated with the sharp rise in Pay-TV accesses, and increased expenses associated with the provision of data services. |
· | Personnel expenses stood at 1,746 million euros (+1.1% year-on-year in reported terms) growing 17.2% excluding the impact of exchange rates differences and the effect of hyperinflation in Venezuela. This year-on-year growth is mainly due to the impact of inflation in some countries in the segment. |
· | Other expenses were 4,834 million euros, declining 0.7% in reported terms, affected by the exchange rate differences and the effect of hyperinflation in Venezuela (-13.3 p.p.) and the sale of non-strategic towers (-0.2 p.p.). |
· | Exchange rate differences and the effect of hyperinflation in Venezuela (-16.1 p.p.). |
· | Contractual changes in the commercial model for selling handsets in Chile (-2.8 p.p.). |
· | The sale of non-strategic towers (-2.1 p.p.). |
· | Mobile voice |
· | Value added |
· | Mobile data and Internet |
· | Wholesale |
· | Corporate |
· | Roaming: Roaming |
· | Fixed |
· | Trunking and |
· | Traditional fixed telecommunication |
· | Internet and broadband multimedia |
· | Data and business-solutions |
· | Wholesale services for telecommunication |
· | Video/TV services: IPTV services (Internet protocol), over-the-top network television services, and cable and satellite TV. In certain markets, advanced Pay-TV services are offered, such as high-definition TV (HDTV), Multiroom (allowing clients to watch different TV channels in different rooms) and Digital Video Recording (DVR). |
· | M2M: Includes both M2M connectivity services and end-to-end products in different countries including in-house developments, as the "smart" M2M solution, which enables "smart" meter communications services. |
· | e-Health services or telecare: These services allow tele-assistance through connectivity services to chronic patients, and other eHealth services. |
· | Financial services and other payment services: These services allow customers to make transfers, payments and mobile recharges among other transactions through prepay accounts or bank accounts. |
· | Security services: Includes services such as the "Latch" applications, which allow consumers to remotely switch their digital services on and off. |
· | Cloud computing services: These services include the Instant Servers services, Telefónica's new global public cloud service for corporate clients. This entails high-performance virtual servers that are optimized for mobile and corporate applications (both fixed and mobile). |
· | Advertising: Includes advertising products based on SMS and IT Technologies such as SMS campaigns or bulk SMS sales to corporations, mobile portals and any other advertising related activities. |
· | Big Data: Includes the product "Smart Steps" which helps retailers, municipalities and public security bodies to understand the influx of people. Anonymous mobile data network and aggregates are used to calculate the influx of people in an area. |
· | Future Communications: Includes “TU Go”, Movistar´ s exclusive application that lets clients have the same number on all their devices and communicate among such devices via Wi-Fi. |
(1) | Telefónica Móviles España (“TME”), our Spanish directly wholly-owned subsidiary, has respective roaming agreements with (i) Mobile Telecommunication Company of Iran (“MTCI”), (ii) MTN Irancell (“Irancell”), (iii) Taliya (“Taliya”) and (iv) Telecomunications Kish Co. (“TKC”). |
(2) | Telefónica Germany GmbH & Co. OHG (“TG”), our German 62.37% indirectly-owned subsidiary, has a roaming agreement with MTCI. TG recorded 156,966.00 euros in roaming revenues under this agreement in 2014. |
(3) | Telefónica Brasil (“TB”), our Brazilian 73.96% indirectly owned subsidiary, has a roaming agreement with Irancell. TB recorded 0.90 U.S. dollars in roaming revenues under this agreement in 2014. |
(4) | Telefónica UK Ltd (“TUK”), our English directly wholly-owned subsidiary, has a roaming agreement with Irancell. TUK recorded 1,558.34 euros in roaming revenues under this agreement in 2013. |
(5) | Pegaso Comunicaciones y Sistemas, S.A. de C.V. (“PCS”), our Mexican directly wholly-owned subsidiary, has a roaming agreement with Irancell. PCS recorded no revenues under this agreement in 2014. |
(6) | Telefónica Argentina, S.A. and Telefónica Móviles Argentina, S.A. (together TA), our Argentinean directly wholly-owned subsidiaries, have a roaming agreement with Irancell. TA recorded 43.96 U.S. dollars in roaming revenues under this agreement in 2014. |
(7) | Telefónica Celular de Nicaragua, S.A. (“TCN”), our Nicaraguan 60% indirectly-owned subsidiary, has a roaming agreement with Irancell. TCN recorded no revenues under this agreement in 2014. |
(8) | E-Plus Mobilfunk GmbH& Co. KG (“E-Plus”), our German 100% indirectly-owned subsidiary, has respective roaming agreements with MTCI, Irancell and Taliya. During 2014, E-Plus recorded the following revenues related to these roaming agreements: 1,415 euros from Irancell and none from Taliya. |
· | progressive introduction of broadband access technologies over copper: ADSL, ADSL2+, VDSL2, etc., increasing the bandwidth capacity provided to our broadband clients several times in the last |
· | introduction of fiber access technologies (xPON) across different deployment scenarios: fiber to the home (FTTH), fiber to the building (FTTB), fiber to the curb (FTTC), fiber to the node (FTTN), etc., increasing the access speed up to 100 Mbps; |
· | service support based on powerful Internet Protocol/ Multiprotocol Label Switching (IP/MPLS) backbones, providing full connectivity to the rest of the network layers, such as access and control, to support services for business and customer market segments (fixed and mobile); |
· | migration of the legacy time division multiplexing (TDM) switching networks (PSTN and ISDN) to new generation network (NGN) over all-IP packet networks; |
· | migration from legacy transport technologies, such as asynchronous transfer mode (ATM), frame relay (FR), low-rate leased lines, plesiochronous digital hierarchy (PDH) and synchronous digital hierarchy (SDH), to the new generation of optical transport ones, such as dense wavelength division multiplexing (DWDM), coarse wavelength division multiplexing (CWDM) and new |
· | introduction of IMS (Internet Multimedia Subsystem) in many countries to simplify the control of the network and ease the deployment of new services over the all-IP converged network; |
· | empowerment of the intelligence of the network to better manage its use, to avoid saturations and frauds and to identify new business opportunities; |
· | convergence of fixed and mobile networks, services and support systems from both technological and operational points of view; and |
· | deployment of new services such as |
· |
· | deployment of new services such as mobile television and distribution services for next generation music, video and games; |
· | exploration of the adequacy of new technologies such as HSPA and LTE to provide mobile accesses with increased bandwidth, in particular: |
HSPA: |
LTE: together with main vendors and sharing experience with other operators, we have extensively analyzed the opportunities that LTE will bring, as 4G mobile technology is used to complement current network technology by creating higher capacity at lower relative cost by user/traffic |
convergence of fixed and mobile networks, services and support systems from both technological and operational points of view. |
Year ended December 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
(in millions of euro) | ||||||||||||
Operating income before depreciation and amortization | 22,603 | 25,777 | 20,210 | |||||||||
Depreciation and amortization expense | (8,956 | ) | (9,303 | ) | (10,146 | ) | ||||||
Operating income | 13,647 | 16,474 | 10,064 |
Year ended December 31, | |||
Millions of euros | 2012 | 2013 | 2014 |
Operating income before depreciation and amortization | 21,231 | 19,077 | 15,515 |
Depreciation and amortization expense | (10,433) | (9,627) | (8,548) |
Operating income | 10,798 | 9,450 | 6,967 |
Year ended December 31, 2011 | ||||||||||||||||||||
Telefónica Spain | Telefónica Latin America | Telefónica Europe | Others and Eliminations | Total | ||||||||||||||||
(in millions of euro) | ||||||||||||||||||||
Operating income before depreciation and amortization | 5,072 | 10,941 | 4,233 | (36 | ) | 20,210 | ||||||||||||||
Depreciation and amortization expense | (2,088 | ) | (4,783 | ) | (3,117 | ) | (158 | ) | (10,146 | ) | ||||||||||
Operating income | 2,984 | 6,158 | 1,116 | (194 | ) | 10,064 |
Year ended December 31, 2010(1) | |||||||||||||||||||||||||||
Telefónica Spain | Telefónica Latin America | Telefónica Europe | Others and Eliminations | Total | |||||||||||||||||||||||
(in millions of euro) | |||||||||||||||||||||||||||
2014 | 2014 | ||||||||||||||||||||||||||
Millions of euros | Telefónica Spain | Telefónica United Kingdom | Telefónica Germany | Telefónica Brazil | Telefónica Hispano américa | Other companies and eliminations | Total Group | ||||||||||||||||||||
Operating income before depreciation and amortization | 8,520 | 13,713 | 4,080 | (536 | ) | 25,777 | 5,671 | 1,744 | 733 | 3,543 | 4,068 | (244) | 15,515 | ||||||||||||||
Depreciation and amortization expense | (2,009 | ) | (3,954 | ) | (3,201 | ) | (139 | ) | (9,303 | ) | (1,805) | (1,121) | (1,426) | (1,762) | (2,034) | (400) | (8,548) | ||||||||||
Operating income | 6,511 | 9,759 | 879 | (675 | ) | 16,474 | 3,866 | 623 | (693) | 1,781 | 2,034 | (644) | 6,967 |
2013 | |||||||
Millions of euros | Telefónica Spain | Telefónica United Kingdom | Telefónica Germany | Telefónica Brazil | Telefónica Hispano américa | Other companies and eliminations | Total Group |
Operating income before depreciation and amortization | 6,340 | 1,637 | 1,308 | 3,940 | 5,531 | 321 | 19,077 |
Depreciation and amortization expense | (1,903) | (1,016) | (1,231) | (2,109) | (2,524) | (844) | (9,627) |
Operating income | 4,437 | 621 | 77 | 1,831 | 3,007 | (523) | 9,450 |
Year ended December 31, 2009(1) | ||||||||||||||||||||
Telefónica Spain | Telefónica Latin America | Telefónica Europe | Others and Eliminations | Total | ||||||||||||||||
(in millions of euro) | ||||||||||||||||||||
Operating income before depreciation and amortization | 9,757 | 9,041 | 3,999 | (194 | ) | 22,603 | ||||||||||||||
Depreciation and amortization expense | (2,140 | ) | (3,700 | ) | (2,988 | ) | (128 | ) | (8,956 | ) | ||||||||||
Operating income | 7,617 | 5,341 | 1,011 | (322 | ) | 13,647 |
2012 | |||||||
Millions of euros | Telefónica Spain | Telefónica United Kingdom | Telefónica Germany | Telefónica Brazil | Telefónica Hispano américa | Other companies and eliminations | Total Group |
Operating income before depreciation and amortization | 6,815 | 1,602 | 1,351 | 5,161 | 5,983 | 319 | 21,231 |
Depreciation and amortization expense | (2,063) | (995) | (1,233) | (2,318) | (2,762) | (1,062) | (10,433) |
Operating income | 4,752 | 607 | 118 | 2,843 | 3,221 | (743) | 10,798 |
As of December 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
(in millions of euro) | ||||||||||||
Non-current interest-bearing debt | 47,607 | 51,356 | 55,659 | |||||||||
Current interest-bearing debt | 9,184 | 9,744 | 10,652 | |||||||||
Gross financial debt | 56,791 | 61,100 | 66,311 | |||||||||
Other non-current payables | 515 | 1,718 | 1,583 | |||||||||
Other current payables (deferred payment for the acquisition of Brasilcel) | — | 1,977 | — | |||||||||
Non-current financial assets(1) | (2,736 | ) | (3,408 | ) | (4,830 | ) | ||||||
Current financial assets | (1,906 | ) | (1,574 | ) | (2,625 | ) | ||||||
Cash and cash equivalents | (9,113 | ) | (4,220 | ) | (4,135 | ) | ||||||
Net financial debt | 43,551 | 55,593 | 56,304 | |||||||||
Commitments related to financial guarantees | 71 | — | — | |||||||||
Net commitments related to workforce reduction | 2,261 | 1,710 | 1,810 | |||||||||
Net debt | 45,883 | 57,303 | 58,114 |
Millions of euros | 12/31/2014 | 12/31/2013 | 12/31/2012 |
Non-current interest-bearing debt | 50,688 | 51,172 | 56,608 |
Current interest-bearing debt | 9,094 | 9,527 | 10,245 |
Gross financial debt | 59,782 | 60,699 | 66,853 |
Non-current trade and other payables | 1,276 | 1,145 | 1,639 |
Current trade and other payables | 210 | 99 | 145 |
Non-current financial assets | (6,267) | (4,468) | (5,605) |
Trade and other receivables | (453) | − | − |
Current financial assets | (2,932) | (2,117) | (1,926) |
Cash and cash equivalents | (6,529) | (9,977) | (9,847) |
Net financial debt | 45,087 | 45,381 | 51,259 |
Net commitments related to employee benefits | 1,976 | 2,270 | 2,036 |
Net debt | 47,063 | 47,651 | 53,295 |
· | it requires us to make assumptions because information was not available at the time or it included matters that were highly uncertain at the time we were making our estimate; and |
· | changes in the estimate or different estimates that we could have selected may have had a material impact on our financial condition, |
· | accounting for long-lived assets, including goodwill; |
· | deferred taxes; |
· | provisions; |
· | revenue recognition; and |
· |
· | A decrease in equity, within the caption “Translation differences”, of approximately 2,950 million euros (see Note 12.f of the Consolidated Financial Statements) as a combined result of the translation to euros at the new exchange rate partially offset by the impact in equity of the inflation adjustment for the period. |
· | As part of the decrease mentioned in the preceding paragraph, the value in euros of the net financial assets denominated in bolívares decreased by approximately 2,700 million euros, as per the balance as of December 31, 2014. |
· | The results from the Telefónica’s subsidiaries in Venezuela have been translated at the new exchange rate. This implied a reduction in operating income before depreciation and amortization (OIBDA) and profit for the year of, approximately, 1,730 and 660 million euros, respectively. |
2009(1) Average | 2010(1) Average | 2011(1) Average | % change 2009 to 2010 Average | % change 2010 to 2011 Average | ||||||||||||||||
Pound Sterling | 0.89 | 0.86 | 0.87 | (3.37 | )% | 1.16 | % | |||||||||||||
U.S. Dollar | 1.39 | 1.32 | 1.40 | (5.04 | )% | 6.06 | % | |||||||||||||
Brazilian Real | 2.76 | 2.33 | 2.33 | (15.58 | )% | 0.00 | % | |||||||||||||
Argentine Peso | 5.17 | 5.18 | 5.74 | 0.19 | % | 10.81 | % | |||||||||||||
Peruvian Nuevo Sol | 4.18 | 3.74 | 3.83 | (10.53 | )% | 2.41 | % | |||||||||||||
Chilean Peso | 775.80 | 674.36 | 672.25 | (13.08 | )% | (0.31 | )% | |||||||||||||
Mexican Peso | 18.78 | 16.71 | 17.25 | (11.02 | )% | 3.23 | % | |||||||||||||
Venezuelan Bolivar fuerte (2) | 3.10 | 5.75 | 5.56 | 85.48 | % | (3.30 | )% | |||||||||||||
Czech Crown | 26.44 | 25.29 | 24.59 | (4.35 | )% | (2.77 | )% | |||||||||||||
Colombian Peso | 2,985.07 | 2,509.22 | 2,568.67 | (15.94 | )% | 2.37 | % | |||||||||||||
Guatemalan Quetzal | 11.33 | 10.66 | 10.83 | (5.91 | )% | 1.59 | % |
2012(1) | 2013(1) | 2014(1) | % change 2012 to 2013 | % change 2013 to 2014 | |
Average | Average | Average | Average | Average | |
Pound Sterling | 0.81 | 0.85 | 0.81 | 4.94% | (4.71)% |
U.S. Dollar | 1.29 | 1.33 | 1.33 | 3.10% | − |
Brazilian Real | 2.50 | 2.85 | 3.12 | 14.00% | 9.47% |
Argentine Peso | 5.84 | 7.23 | 10.75 | 23.80% | 48.69% |
Peruvian Nuevo Sol | 3.39 | 3.58 | 3.77 | 5.60% | 5.31% |
Chilean Peso | 624.59 | 656.25 | 756.71 | 5.07% | 15.31% |
Mexican Peso | 16.90 | 16.93 | 17.65 | 0.18% | 4.25% |
Venezuelan Bolívar Fuerte (2) | 5.67 | 8.69 | 60.69 | 53.26% | n.m. |
Czech Crown | 25.14 | 25.99 | 27.53 | 3.38% | 5.93% |
Colombian Peso | 2,308.54 | 2,478.69 | 2,650.03 | 7.37% | 6.91% |
Guatemalan Quetzal | 10.06 | 10.43 | 10.25 | 3.68% | (1.73)% |
(1) | These exchange rates are used to convert the income statements of our subsidiaries from local currency to euro. |
(2) |
Year ended December 31, | |||||||||||||||
2009 | 2010 | 2011 | |||||||||||||
IFRS | (in millions of euro) | ||||||||||||||
(millions of euros) | 2012 | 2013 | 2014 | ||||||||||||
Net cash from operating activities | 16,148 | 16,672 | 17,483 | 15,213 | 14,344 | 12,193 | |||||||||
Net cash used in investing activities | (9,300 | ) | (15,861 | ) | (12,497 | ) | (7,877) | (9,900) | (9,968) | ||||||
Net cash used in financing activities | (2,281 | ) | (5,248 | ) | (4,912 | ) | (1,243) | (2,685) | (4,041) |
· | costs and expenses relating to the operation of our business; |
· | debt service requirements relating to our existing and future debt; |
· | capital expenditures for existing and new operations; |
· | acquisitions of new licenses or other operators or companies engaged in complementary or related businesses; |
· | dividend, other shareholder remuneration, and pre-retirement |
AMORTIZATION SCHEDULE FOR THE YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | Subsequent | Total | ||||||||||||||||||||||
Non-convertible euro and foreign currency debentures and bonds | 2,824 | 5,203 | 4,933 | 3,860 | 6,590 | 15,012 | 38,422 | |||||||||||||||||||||
Promissory notes and commercial paper | 1,832 | — | — | — | — | — | 1,832 | |||||||||||||||||||||
Other marketable debt securities | — | — | — | — | — | 1,985 | 1,985 | |||||||||||||||||||||
Loans and other payables (principal and interest accrued) | 5,683 | 2,314 | 2,746 | 4,384 | 2,774 | 3,722 | 21,623 | |||||||||||||||||||||
Derivative financial liabilities | 313 | 92 | 126 | 289 | 191 | 1,438 | 2,449 | |||||||||||||||||||||
Total (*) | 10,652 | 7,609 | 7,805 | 8,533 | 9,555 | 22,157 | 66,311 |
Millions of euros | |||||||||
Current | Non-current | ||||||||
Maturity | 2015 | 2016 | 2017 | 2018 | 2019 | Subsequent years | Non-current total | Total | |
Debentures and bonds | 4,601 | 6,722 | 6,392 | 4,834 | 3,465 | 18,214 | 39,627 | 44,228 | |
Promissory notes & commercial paper | 502 | − | − | − | − | − | − | 502 | |
Other marketable debt securities | − | − | − | − | − | − | − | − | |
Total Issues | 5,103 | 6,722 | 6,392 | 4,834 | 3,465 | 18,214 | 39,627 | 44,730 | |
Loans and other payables | 3,590 | 1,533 | 3,205 | 761 | 849 | 1,482 | 7,830 | 11,420 | |
Other financial liabilities | 401 | 152 | 347 | 477 | 357 | 1,898 | 3,231 | 3,632 | |
TOTAL | 9,094 | 8,407 | 9,944 | 6,072 | 4,671 | 21,594 | 50,688 | 59,782 |
· | On February 19, 2015, Telefónica, S.A. signed a 2,500 million euros syndicated credit facility maturing in 2020 with two twelve month extension options requiring mutual agreement of the parties (which could extend the maturity to as late as 2022). This agreement entered into effect on February 26, 2015 and allowed us to cancel in advance the syndicated loan facility of Telefónica Europe, B.V. dated |
· | developing new products and services in order to |
· | boosting customer loyalty; |
· |
· | enhancing innovation management; |
· | improving business practices; |
· | increasing the quality of infrastructure services to improve customer service and reduce costs; |
· | promoting global products; |
· | supporting open innovation; and |
· | creating value from the technology generated. |
· | Telefónica I+D’s works on new networks, primarily in collaboration with Telefónica’s Global Resources team. These activities are related to radio access technologies and fiber; network virtualization technologies, in line with the technology trend known as software defined networks (SDN); and network optimization and zero touch developments making networks more flexible and moldable and able to adapt dynamically to new digital consumer and service requirements. |
· | R&D activities to develop new products and services are conducted as part of the digital services strategy. These activities include the following: |
o | Natural P2P communication of the future, using the Internet, Web 2.0 and |
Video and multimedia services (combining text, audio, images and video) offering |
Advanced solutions in emerging ITC |
M2M (machine-to-machine) service management associated with energy efficiency and |
Making use of user communication profiles to |
Payments Due by Period | |||||
Millions of euros | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years |
Financial liabilities (1)(2) | 59,782 | 9,094 | 18,351 | 10,743 | 21,594 |
Operating lease obligations (3) | 10,197 | 1,643 | 2,669 | 2,068 | 3,817 |
Purchase and other contractual obligations(4) | 9,037 | 4,295 | 2,071 | 961 | 1,710 |
Other liabilities (5) | 3,828 | 574 | 3,254 | − | − |
Total | 82,844 | 15,606 | 26,345 | 13,772 | 27,121 |
Payments Due by Period | ||||||||||||||||||||
Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 Years | ||||||||||||||||
(in millions of euro) | ||||||||||||||||||||
Financial liabilities (1)(2) | 66,311 | 10,652 | 15,414 | 18,088 | 22,157 | |||||||||||||||
Operating lease obligations (3) | 9,613 | 1,543 | 2,591 | 2,114 | 3,365 | |||||||||||||||
Purchase and other contractual obligations(4) | 2,568 | 1,473 | 737 | 345 | 13 | |||||||||||||||
Other liabilities (5) | 2,869 | 696 | 2,173 | — | — | |||||||||||||||
Total | 81,361 | 14,364 | 20,915 | 20,547 | 25,535 |
(1) | Capital (finance) lease obligations are not calculated separately and are instead included as part of our long-term debt obligations. |
(2) |
(3) | This item includes definitive payments (non-cancellable without penalty cost). Our operating lease obligations have in some cases extension options conditioned on the applicable law of each country. Accordingly, we have included only those amounts that represent the initial contract period. At December 31, 2014, the present value of future payments for operating leases was approximately 7,966 million euros (1,715 million euros in Telefónica Brazil, 1,640 million euros in Telefónica Hispanoamérica, 930 million euros in Telefónica Spain, 710 million euros in Telefónica United Kingdom, 2,837 million euros in Telefónica Germany and 134 million euros in other companies). For a more detailed information about payments due under this item, see Note 19 to our Consolidated Financial Statements. |
(4) | This item includes definitive payments (non-cancellable without penalty cost) due for agreements to purchase goods (such as network equipment) and services. |
(5) | “Other liabilities” include: (a) long-term obligations that require us to make cash payments, excluding financial debt obligations included in the table under “Financial Liabilities” above and (b) other provisions. Because of the nature of the risks covered by “Other liabilities” such as other provisions, it is not possible to determine a reliable schedule of potential payments, if any. For details of the composition of other provisions, see Note 15 to our Consolidated Financial Statements. |
Name | Age | First Appointed | Current Term Ends | |||||||||
Chairman | ||||||||||||
Mr. César Alierta Izuel(1) | 66 | 1997 | 2012 | |||||||||
Vice-chairmen | ||||||||||||
Mr. Isidro Fainé Casas(1)(2) | 69 | 1994 | 2016 | |||||||||
Mr. José María Abril Pérez (1)(3)(5)(8) | 60 | 2007 | 2013 | |||||||||
Members (vocales) | ||||||||||||
Mr. Julio Linares López(1)(8) | 66 | 2005 | 2016 | |||||||||
Mr. Ignacio Moreno Martínez (3) | 54 | 2011 | 2012 | |||||||||
Mr. José Fernando de Almansa Moreno-Barreda(5)(6)(9) | 63 | 2003 | 2013 | |||||||||
Mr. Jose María Álvarez –Pallete López | 48 | 2006 | 2012 | |||||||||
Mr. David Arculus (5)(6) | 65 | 2006 | 2016 | |||||||||
Ms. Eva Castillo Sanz (6)(9)(11) | 49 | 2008 | 2013 | |||||||||
Mr. Carlos Colomer Casellas(1)(8)(10)(11) | 67 | 2001 | 2016 | |||||||||
Mr. Peter Erskine(1)(8)(9)(10) | 60 | 2006 | 2016 | |||||||||
Mr. Alfonso Ferrari Herrero (1)(4)(5)(6)(7)(9)(10)(11) | 70 | 2001 | 2016 |
Mr. Luiz Fernando Furlán(5) | 65 | 2008 | 2013 | |||||||||
Mr. Gonzalo Hinojosa Fernández de Angulo (1)(4)(5)(7)(9)(10)(11) | 66 | 2002 | 2012 | |||||||||
Mr. Pablo Isla Álvarez de Tejera(6)(7)(10)(11) | 48 | 2002 | 2012 | |||||||||
Mr. Antonio Massanell Lavilla(2)(4)(7)(8)(11) | 57 | 1995 | 2016 | |||||||||
Mr. Francisco Javier de Paz Mancho (1)(5)(6)(7) | 53 | 2007 | 2013 | |||||||||
Mr. Chang Xiaobing (12) | 54 | 2011 | 2016 |
Name | Age | First Appointed | Current Term Ends |
Chairman | |||
Mr. César Alierta Izuel(1) | 69 | 1997 | 2017 |
Vice-chairmen | |||
Mr. Isidro Fainé Casas(1)(2) | 72 | 1994 | 2016 |
Mr. José María Abril Pérez (1)(3)(7) | 62 | 2007 | 2018 |
Mr. Julio Linares López (5)(7)(8) | 69 | 2005 | 2016 |
Members (vocales) | |||
Mr. José María Álvarez-Pallete López (1) | 51 | 2006 | 2017 |
Mr. José Fernando de Almansa Moreno -Barreda(5)(6)(8) | 66 | 2003 | 2018 |
Ms. Eva Castillo Sanz (6)(8)(10) | 52 | 2008 | 2018 |
Mr. Carlos Colomer Casellas(1)(4)(7)(9)(10) | 70 | 2001 | 2016 |
Mr. Peter Erskine(1)(7)(8)(9) | 63 | 2006 | 2016 |
Mr. Santiago Fernández Valbuena | 56 | 2012 | 2018 |
Mr. Alfonso Ferrari Herrero (1)(4)(5)(6)(8)(9)(10) | 73 | 2001 | 2016 |
Mr. Luiz Fernando Furlán | 68 | 2008 | 2018 |
Mr. Gonzalo Hinojosa Fernández de Angulo (1)(4)(5)(6)(8)(9)(10) | 69 | 2002 | 2017 |
Mr. Pablo Isla Álvarez de Tejera(9) | 51 | 2002 | 2017 |
Mr. Antonio Massanell Lavilla(2)(4)(5)(7)(10) | 60 | 1995 | 2016 |
Mr. Ignacio Moreno Martínez (3)(4)(6)(10) | 57 | 2011 | 2017 |
Mr. Francisco Javier de Paz Mancho (1)(5)(6)(10) | 56 | 2007 | 2018 |
Mr. Chang Xiaobing (11) | 57 | 2011 | 2016 |
(1) | Member of the Executive Commission of the Board of Directors. |
(2) | Nominated by Fundación Bancaria Caja de Ahorros y Pensiones de Barcelona (“La Caixa”). |
(3) | Nominated by Banco Bilbao Vizcaya Argentaria, S.A. (“BBVA”). |
(4) | Member of the Audit and Control Committee of the Board of Directors. |
(5) | Member of the |
(6) | Member of the Regulation Committee. |
(7) |
Member of the Innovation Committee. |
Member of the Strategy Committee. |
Member of the Nominating, Compensation and Corporate Governance Committee. |
Member of the Service Quality and Customer Service Committee. |
Nominated by China Unicom (Hong Kong) |
· | to report, through its chairman, to our shareholders at the general shareholders’ meeting regarding matters raised therein by the shareholders relating to the functions and matters of competence of the committee; |
· | to propose to our Board of Directors to submit to our general meeting of shareholders the appointment of our auditors referred to in Article 264 of the Spanish Corporation |
· | to supervise the effectiveness of the Company's internal control system, the internal audit and the risk management systems as well as to discuss with our auditors any significant weaknesses in the internal control system detected during the audit; |
· | to supervise the preparation and submission of regulated financial information; |
· | to establish and maintain the necessary relations with the auditors to receive, for review by the Committee, information on all matters that may put their independence at risk, and any other matters related to the process of auditing our accounts, as well as to receive information and maintain communication with our auditors as required by laws relating to the audit process and with respect to technical regulations on auditing. In any event, the Audit and Control Committee must receive annually written confirmation from our auditors of their independence vis-à-vis the entity or entities directly or indirectly related thereto, as well as information regarding additional services of any kind provided to such entities by our auditors, or by the persons or entities related thereto, pursuant to Law 19/1988, of July 12, on Auditing of Financial Statements; and |
· | to issue on an annual basis, prior to the issuance of the audit report, a report stating an opinion regarding the independence of our auditors. This report must in all cases include an opinion on the provision of the additional services referred to in the immediately preceding paragraph. |
Name | Position | Appointed | Age | Position | Appointed | Age | |||||
Mr. César Alierta Izuel | Chairman of the Board of Directors and Chief Executive Officer | 2000 | 66 | Chairman of the Board of Directors and Chief Executive Officer | 2000 | 69 | |||||
Mr. Julio Linares López | Chief Operating Officer | 2007 | 66 | ||||||||
Mr. José María Álvarez –Pallete López | Chairman of Telefónica Europe | 2011 | 48 | ||||||||
Mr. José María Álvarez -Pallete López | Chief Operating Officer | 2012 | 51 | ||||||||
Mr. Santiago Fernández Valbuena | Chief Strategy Officer | 2011 | 56 | ||||||||
Mr. Guillermo Ansaldo Lutz | General Manager of Global Resources | 2011 | 50 | Chief Global Resources Officer | 2011 | 53 | |||||
Mr. Matthew Key | Chairman of Telefónica Digital | 2011 | 49 | ||||||||
Mr. Santiago Fernández Valbuena | Chaiman of Telefónica Latin América | 2002 | 54 | ||||||||
Mr. Luis Abril Pérez | Technical General Secretary to the Chairman | 2002 | 64 | ||||||||
Mr. Ramiro Sánchez de Lerín Garcia-Ovies | General Legal Secretary and Secretary to the Board | 2005 | 60 | ||||||||
Mr. Angel Vilá Boix | Chief Financial and Corporate Development Officer | 2011 | 50 | ||||||||
Mr. Eduardo Navarro de Carvalho | Chief Commercial Digital Officer | 2012 | 52 | ||||||||
Mr. Ignacio Cuesta | General Manager of Internal Audit | 2012 | 52 |
Name | Position | Appointed | Age | |||
Mr. Calixto Ríos Pérez | General Manager of Internal Audit | 2002 | 67 | |||
Mr. Ángel Vilá Voix | General Manager of Finance and Corporate Development | 2011 | 47 | |||
Mr. Ramiro Sánchez de Lerín García-Ovies | General Legal Secretary and Secretary to the Board | 2003 | 57 |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name of Beneficial Owner | Number of Shares | Percent | ||
Banco Bilbao Vizcaya Argentaria, S.A.(1) | 258,217,137 | 5.657% | ||
Caja de Ahorros y Pensiones de Barcelona (“la Caixa”)(2) | 246,898,917 | 5.410% | ||
Blackrock, Inc.(3) | 177,257,649 | 3.88% |
Name of Beneficial Owner | Number of Shares | Percent | |
Direct | Indirect | ||
Banco Bilbao Vizcaya Argentaria, S.A.(1) | 291,194,876 | 13,132 | 6.25% |
Fundación Bancaria Caixa d Estalvis i Pensions de Barcelona (“La Caixa”)(2) | - | 244,647,885 | 5.25% |
Blackrock, Inc.(3) | - | 177,257,649 | 3.81% |
(1) | Based on the information provided by Banco Bilbao Vizcaya Argentaria, S.A. as at December 31, |
(2) | Based on information provided by Fundación Bancaria Caja de Ahorros y Pensiones de Barcelona, “la Caixa” as at December 31, |
(3) | According to notification sent to the 2010. |
1. | To approve, with the restrictions mentioned below, the acquisition by Telefónica of the entire participation held by Portugal Telecom, SGPS S.A. and PT Móveis - Serviços de Telecomunicações, SGPS, S.A., (the "PT Companies") in Brasilcel, N.V., which controlled the Brazilian mobile company, Vivo Participações, S.A. ("Vivo"): |
(a) | The entry of a new shareholder in Vivo, sharing the control of Vivo with Telefónica in conditions identical to those that were applicable to the PT Companies when they had a participation in Brasilcel N.V., or |
(b) | That Telefónica ceases to have any direct or indirect financial interest in TIM Participações S.A. |
2. | To impose on Telefónica a fine of 15 million Brazilian Reals, for having allegedly breached the spirit and the goal of the agreement signed between Telefónica and CADE (as a condition to the approval of Telefónica's original acquisition of an interest in Telecom Italia, S.p.A. in 2007), due to the subscription of non-voting shares of Telco in recent capital increases. This decision also requires Telefónica to divest such non-voting shares of Telco. |
• | The last ten years in Germany; |
• | The last seven years in United Kingdom and Argentina; |
• | The last five years in Brazil, Mexico, Uruguay, Colombia and the Netherlands; |
• | The last four years in Venezuela, Peru, Guatemala and Costa Rica; and |
• | The last three years in Chile, Ecuador, Nicaragua, El Salvador, the United States and Panama. |
Year ended December 31, | Dividends per share | |
(euro) | ||
2011(1) | 1.60 | |
2010 | 1.40 | |
2009 | 1.15 | |
2008 | 1.00 | |
2007 | 0.75 |
Year ended December 31, | Dividends per share (euro) |
2014 (1) | 0.75 |
2013 (2) | 0.75 |
2012 (3) | − |
2011 (4) | 1.60 |
2010 | 1.40 |
2009 | 1.15 |
(1) | Company’s shareholder remuneration in 2014 consists of paying a dividend of 0.75 euros per share. A scrip dividend of up to 0.35 euros was paid in November 2014, consisting of the assignment of free allotment rights with an irrevocable purchase commitment by the Company, and a subsequent capital increase by means of the issue of new shares to fulfill said allotments. The second tranche of the dividend of 0.40 euros per share will be paid in cash in the second quarter of 2015. |
(2) | A cash dividend of |
(3) | As of July 25, 2012, the Board of Directors cancelled the dividend and share buyback program corresponding to 2012 (including November 2012 and May 2013 cash and scrip payments, respectively). |
(4) | A cash dividend of 0.77 euros per share was paid on November 7, 2011, charged against unrestricted reserves. A cash dividend of |
Number of shares | Acquisition price (euro per share) | Trading price(1) (euro per share) | Market value(2) (in millions of euro) | Percentage of our capital stock(3) | ||||||||||||||||
Treasury shares at December 31, 2011 | 84,209,364 | 15.68 | 13.39 | 1,127 | 1,84508 | % | ||||||||||||||
Treasury shares at December 31, 2010 | 55,204,942 | 17.01 | 16.97 | 937 | 1.20957 | % | ||||||||||||||
Treasury shares at December 31, 2009 | 6,329,530 | 16.81 | 19.52 | 124 | 0.13868 | % |
undertaking treasury share acquisitions approved by the Board of |
honoring previous legitimate commitments assumed; |
covering requirements for shares to allocate to employees and management under stock |
· | ||||
acquired), thereby improving earnings per share. |
Per Share (in euro) | Per ADS (in dollars)(1) | |||||||||||||||
High | Low | High | Low | |||||||||||||
Year ended December 31, 2007 | 23.260 | 15.200 | 34.37 | 20.15 | ||||||||||||
Year ended December 31, 2008 | 22.780 | 12.730 | 33.97 | 15.88 | ||||||||||||
Year ended December 31, 2009 | 19.750 | 13.690 | 29.69 | 17.24 | ||||||||||||
Year ended December 31, 2010 | 19.820 | 14.875 | 28.55 | 17.81 | ||||||||||||
Year ended December 31, 2011 | 18.655 | 12.690 | 27.08 | 16.58 | ||||||||||||
Quarter ended March 31, 2010 | 19.820 | 16.440 | 28.55 | 22.53 | ||||||||||||
Quarter ended June 30, 2010 | 18.090 | 14.875 | 24.72 | 17.81 | ||||||||||||
Quarter ended September 30, 2010 | 18.410 | 15.090 | 24.91 | 19.05 | ||||||||||||
Quarter ended December 31, 2010 | 19.595 | 16.390 | 27.56 | 21.33 | ||||||||||||
Quarter ended March 31, 2011 | 18.655 | 16.580 | 25.74 | 21.61 | ||||||||||||
Quarter ended June 30, 2011 | 18.230 | 16.020 | 27.08 | 22.63 | ||||||||||||
Quarter ended September 30, 2011 | 16.985 | 12.690 | 24.79 | 17.80 | ||||||||||||
Quarter ended December 31, 2011 | 15.830 | 12.835 | 22.54 | 16.61 | ||||||||||||
Month ended September 30, 2011 | 14.590 | 12.690 | 20.70 | 17.80 | ||||||||||||
Month ended October 31, 2011 | 15.830 | 14.070 | 22.54 | 18.38 | ||||||||||||
Month ended November 30, 2011 | 15.180 | 12.865 | 20.63 | 17.00 | ||||||||||||
Month ended December 31, 2011 | 14.115 | 12.835 | 18.85 | 16.61 | ||||||||||||
Month ended January 31, 2012 | 13.710 | 13.005 | 17.73 | 16.58 | ||||||||||||
Month ended February 29, 2012 | 13.495 | 12.810 | 17.76 | 16.95 | ||||||||||||
Month ended March 31, 2012 (through March 28, 2012) | 13.010 | 12.300 | 17.27 | 16.31 |
Per Share | Per ADS | |||
(in euro) | (in dollars)(1) | |||
High | Low | High | Low | |
Year ended December 31, 2010 | 19.820 | 14.875 | 28.55 | 17.81 |
Year ended December 31, 2011 | 18.655 | 12.690 | 27.08 | 16.61 |
Year ended December 31, 2012 | 13.710 | 8.630 | 17.76 | 10.25 |
Year ended December 31, 2013 | 13.105 | 9.492 | 18.02 | 12.43 |
Year ended December 31, 2014 | 13.370 | 10.865 | 17.40 | 13.99 |
Quarter ended March 31, 2013 | 11.500 | 9.492 | 14.96 | 12.43 |
Quarter ended June 30, 2013 | 11.350 | 9.613 | 14.86 | 12.60 |
Quarter ended September 30, 2013 | 11.545 | 9.718 | 15.59 | 12.60 |
Quarter ended December 31, 2013 | 13.105 | 11.265 | 18.02 | 15.45 |
Quarter ended March 31, 2014 | 12.515 | 10.865 | 16.90 | 14.96 |
Quarter ended June 30, 2014 | 12.850 | 11.480 | 17.40 | 15.79 |
Quarter ended September 30, 2014 | 12.705 | 11.590 | 17.28 | 15.34 |
Quarter ended December 31, 2014 | 13.370 | 10.965 | 16.39 | 13.99 |
Month ended August 31, 2014 | 12.135 | 11.590 | 16.15 | 15.39 |
Month ended September 30, 2014 | 12.390 | 11.910 | 16.02 | 15.34 |
Month ended October 31, 2014 | 12.200 | 10.965 | 15.30 | 13.99 |
Month ended November 30, 2014 | 12.880 | 11.810 | 16.00 | 14.70 |
Month ended December 31, 2014 | 13.370 | 11.875 | 16.39 | 14.21 |
Month ended January 31, 2015 | 13.380 | 11.355 | 15.19 | 13.45 |
Month ended February 28, 2015 (through 25, 2015) | 13.800 | 12.950 | 15.64 | 14.61 |
· | establishes an independent regulatory authority, the CNMV, to supervise the securities markets; |
· | establishes the rules for surveillance, supervision and sanction provided for the representation of transferable securities by book entries or by certificate; |
· | establishes a framework for the issuance of securities; |
· | establishes a framework for trading activities; |
· | establishes the disclosure obligations of issuers, particularly the obligation to file annual audited financial statements and to make public quarterly financial information; |
· | establishes the framework for tender offers; |
· | establishes the code of conduct for all market participants; and |
· | regulates market abuse infringements. |
· | the trade involves more than |
· | the transaction derives from a merger or spin-off process, or from the reorganization of a group of companies; |
· | the transaction is executed for the purposes of settling a litigation or completing a complex group of contracts; or |
· | Sociedad de Bolsas, S.A. finds other justifiable cause. |
· | bookkeeping of securities represented by means of book entries admitted to trading in the stock markets or in the public debt book entry market; |
· | managing the clearance and settlement system for the brokerage transactions in the stock markets and at the public debt book entry market; and |
· | providing technical and operational services directly linked to the registry, clearance and settlement of securities, or any other service required by Iberclear to be integrated with any other registry, clearance, and settlement systems. |
· | The provision and operation of all kinds of public or private telecommunications services and, for such purpose, the design, installation, maintenance, repair, improvement, acquisition, disposition, interconnection, management, administration of, and any other activity not included in the preceding enumeration with respect to, all kinds of telecommunications networks, lines, satellites, equipment, systems and technical infrastructure whether now existing or to be created in the future, including the premises in which any and all of the foregoing items are located; |
· | the provision and operation of all kinds of services that are ancillary or supplemental to or result from telecommunications services; |
· | the research and development, promotion and application of all kinds of component principles, equipment and systems directly or indirectly used for telecommunications; |
· | manufacturing and production activities and, in general, all other forms of industrial activity in connection with telecommunications; and |
· | acquisition, disposition and, in general, all other forms of commercial activity in connection with telecommunications. |
· |
· |
· | impose additional notification obligations by either (a) reducing the thresholds for the notification of net short positions in relation to one or several specific financial instruments; and/or (b) requesting the parties involved in the lending of a specific financial instrument to notify any change in the fees requested for such lending; and |
· |
· | the repurchase must be authorized by the general shareholders’ meeting by a resolution establishing the maximum number of |
· |
· | the aggregate par value of the shares directly or indirectly repurchased, together with the aggregate par value of the shares already held by us and our subsidiaries, must not exceed 10% of our share capital; and |
· | the shares repurchased must be fully paid and must be free of |
· | debt financial instruments exchangeable into equity instruments; or |
· | employee share option programs or other allocations of shares to employees of the issuer or an associated company. |
· | by means of the acquisition of shares or other securities that directly or indirectly give voting rights in such company; |
· | through agreements with shareholders or other holders of said securities; or |
· | as a result of other situations of equivalent effect as provided in the regulations (i.e., indirect control acquired through mergers, share capital decreases, target’s treasury stock variations or securities exchange or conversion, etc.). |
· | it acquires, directly or indirectly, a percentage of voting rights equal to or greater than 30%; or |
· | it has acquired a percentage of less than 30% of the voting rights and appoints, in the 24 months following the date of acquisition of said percentage, a number of directors that, together with those already appointed, if any, represent more than one-half of the members of the target company’s board of directors. Regulations also set forth certain situations where directors are deemed to have been appointed by the bidder or persons acting in concert therewith unless evidence to the contrary is provided. |
· | subject to the CNMV’s approval, |
− | acquisitions or other transactions resulting from the conversion or capitalization of credits into shares of listed companies, the financial feasibility of which is subject to serious and imminent danger, even if the company is not undergoing bankruptcy proceedings, provided that such transactions are intended to ensure the company’s financial recovery in the long term; or |
− | in the event of a merger, provided that those acquiring control did not vote in favor of the merger at the relevant general shareholders’ meeting of the offeree company and provided also that it can be shown that the primary purpose of the transaction is not the takeover but an industrial or corporate purpose; and |
· | when control has been obtained after a voluntary bid for all of the securities, if either the bid has been made at an equitable price or has been accepted by holders of securities representing at least 50% of the voting rights to which the bid was directed. |
· | percentages of voting rights corresponding to (i) companies belonging to the same group of the bidder; (ii) members of the board of directors of the bidder or of companies of its group; (iii) persons acting for the account of or in concert with the bidder (a concert party shall be deemed to exist when two or more persons collaborate under an agreement, be it express or implied, oral or written, in order to obtain control of the offeree company); (iv) voting rights exercised freely and over an extended period by the bidder under proxy granted by the actual holders or owners of such rights in the absence of specific instructions with respect thereto; and (v) shares held by a nominee, such nominee being understood as a third party whom the bidder totally or partially covers against the risks inherent in acquisitions or transfers of the shares or the possession thereof, will be deemed to be held by the bidder (including the voting rights attaching to shares that constitute the underlying asset or the subject matter of financial contracts or swaps when such contracts or swaps cover, in whole or in part, against the risks inherent in ownership of the securities and have, as a result, an effect similar to that of holding shares through a nominee); |
· | both the voting rights arising from the ownership of shares and those enjoyed under a usufruct or pledge or upon any other title of a contractual nature will be counted towards establishing the number of voting rights held; |
· | the percentage of voting rights shall be calculated based on the entire number of shares carrying voting rights, even if the exercise of such rights has been suspended; voting rights attached to treasury shares shall be excluded; and non-voting shares shall be taken into consideration only when they carry voting rights pursuant to applicable law; and |
· | acquisitions of securities or other financial instruments giving the right to the subscription, conversion, exchange or acquisition of shares which carry voting rights will not result in the obligation to launch a tender offer either until such subscription, conversion, exchange or acquisition occurs. |
· | they might be subject to certain conditions (such as amendments to the bylaws or adoption of certain resolutions by the target company, acceptance of the offer by a minimum number of securities, approval of the offer by the shareholders’ meeting of the bidder and any other deemed by the CNMV to be in accordance with law), provided that such conditions can be met before the end of the acceptance period of the offer; and |
· | they may be launched at any price, regardless of whether it is lower than the above-mentioned “equitable price”. However, if they are not launched at an equitable price and if the tender offer shares representing at least 50% of the voting rights are tendered in the offer (excluding voting rights already held by the bidder and those belonging to shareholders who entered into an agreement with the bidder regarding the tender offer), the bidder may become obliged to launch a mandatory tender offer. |
· | subject to shareholder approval within 18 months from the date of announcement of the tender offer, the board of directors of a target company will be exempt from the rule prohibiting frustrating action against a foreign bidder whose board of directors is not subject to an equivalent passivity rule; |
· | defensive measures included in a listed company’s bylaws and transfer and voting restrictions included in agreements among a listed company’s shareholders will remain in place whenever the company is the target of a tender offer, unless the shareholders resolve otherwise (in which case any shareholders whose rights are diluted or otherwise adversely affected will be entitled to compensation at the target company’s expense); and |
· | squeeze-out and sell-out rights will apply provided that following a tender offer for all the target’s share capital, the bidder holds securities representing at least 90% of the target company’s voting capital and the tender offer has been accepted by the holders of securities representing at least 90% of the voting rights other than those held by or attributable to the bidder previously to the offer. |
· | refuse to effect any registration of transfer of such ordinary shares or any split-up or combination thereof until such payment is made; or |
· | withhold or deduct from any distributions on such ordinary shares or sell for the account of the holder thereof any part or all of such ordinary shares (after attempting by reasonable means to notify such holder prior to such sale), and apply, after deduction for its reasonable expenses incurred in connection therewith, the net proceeds of any such sale to payment of such tax or other governmental charge. The holder of such ordinary shares will remain liable for any deficiency. |
· | are transferable; |
· | may be traded on the Automated Quotation System; and |
· | may be of value to existing shareholders because new shares may be offered for subscription at prices lower than prevailing market prices. |
(a) | that is, for U.S. federal income tax purposes, one of the following: |
i. | a citizen or individual resident of the United States, |
ii. | a corporation (or other entity taxable as a corporation) created or organized in or under the laws of the United States or any state therein or the District of Columbia, or |
iii. | an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source; |
(b) | who is entitled to the benefits of the Treaty; |
(c) | who holds the shares or ADSs as capital assets for U.S. federal income tax purposes; |
(d) | who owns, directly, indirectly or by attribution, less than 10% of the share capital or voting stock of Telefónica; and |
(e) | whose holding is not attributable to a fixed base or permanent establishment in Spain. |
· | the corresponding Spanish tax |
· | the certificate referred to in the preceding section, and |
· | evidence of the Spanish Non-Resident Income Tax that was withheld with respect to you. |
a) | Exchange rate risk |
Exchange rate risk arises primarily from (i) our international presence, through our investments and businesses in countries that use currencies other than the euro (primarily in Latin America, but also in the United |
b) | Interest rate risk |
Interest rate risk arises primarily from changes in interest rates affecting (i) financial expenses on floating rate debt (or short-term debt likely to be renewed), due to changes in interest rates and (ii) the value of long-term liabilities at fixed interest rates. |
c) | Share price risk |
Share price risk arises primarily from changes in the value of our equity investments that may be bought, sold or otherwise involved in transactions, from changes in the value of derivatives associated with such investments, from changes in the value of our treasury shares and from equity derivatives. |
Category | Depositary Actions | Associated Fee / By Whom Paid | ||
(a) Depositing or substituting the underlying shares | Issuance of ADSs upon the deposit of shares | Up to | ||
(b) Receiving or distributing dividends | Distribution of cash dividends or other cash distributions; distribution of share dividends or other free share distributions; distribution of securities other than ADSs or rights to purchase additional ADSs | Up to | ||
(c) Selling or exercising rights | Distribution or sale of securities | Up to | ||
(d) Withdrawing an underlying security | Acceptance of ADSs surrendered for withdrawal of deposited securities | Up to | ||
(e) Transferring, splitting or grouping receipts | Transfers | Up to |
(f) General depositary services, particularly those charged on an annual basis | Other services performed by the Depositary in administering the ADSs | Up to | ||
(g) Expenses of the Depositary | Certain fees and expenses incurred by the depositary bank and certain taxes and governmental charges in connection with: · compliance with foreign exchange control regulations or any law or regulation relating to foreign investment; · the Depositary or its custodian’s compliance with applicable law, rule or regulation; · stock transfer or other taxes and other governmental charges; · cable, telex, facsimile transmission/delivery; · expenses of the Depositary in connection with the conversion of foreign currency into U.S. dollars (which are paid out of such foreign currency); · any other charge payable by Depositary or its agents. | Expenses payable at the sole discretion of the Depositary (billed or deducted from cash distributions to person holding ADSs on applicable record date established by the Depositary) |
(1) | In the case of ADSs issued by the Depositary into |
(2) | For ADSs held through DTC, the Depositary fees for distributions other than cash and the Depositary service fee are charged by the Depositary to the DTC Participants in accordance with the procedures and practices prescribed by DTC from time to time and the DTC Participants in turn charge the amount of such fees to the beneficial owners for whom they hold ADSs. |
Year ended December 31, 2011 | |||||||||||||
Period of Fiscal Year | Total Number of Shares Purchased | Average Price Paid per Share (euro) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs(1) | ||||||||||
January 1 to January 31 | 750,000 | 16.80 | 219,776 | ||||||||||
February 1 to February 28 | — | — | — | ||||||||||
March 1 to March 31 | 2,250,000 | 17.56 | 399,572 | ||||||||||
April 1 to April 30 | 3,027,577 | 17.90 | 194,977 | ||||||||||
May 1 to May 31 | 1,800,000 | 16.86 | 207,957 | ||||||||||
June 1 to June 30 | 6,167,704 | 14.75 | 1,685,009 | ||||||||||
July 1 to July 31 | 5,988,123 | 14.84 | 1,201,509 | ||||||||||
August 1 to August 31 | 13,407,065 | 14.00 | 254,376 | ||||||||||
September 1 to September 30 | 4,090,530 | 13.67 | — | ||||||||||
October 1 to October 31 | 6,010,626 | 15.23 | — | ||||||||||
November 1 to November 30 | 7,488,327 | 14.98 | — | ||||||||||
December 1 to December 31 | 5,000,000 | 13.45 | — | ||||||||||
Total | 55,979,952 | 14.85 | 4,163,176 |
Year ended December 31, 2014 | |||||
Period of Fiscal Year | Total Number of Shares Purchased | Average Price Paid per Share (euro) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs(1) | ||
January 1 to January 31 | 10,914,199 | 11.88 | 0 | ||
February 1 to February 28 | 14,402,765 | 11.23 | 0 | ||
March 1 to March 31 | 15,056,983 | 11.15 | 0 | ||
April 1 to April 30 | 5,304,169 | 11.66 | 125,080 | ||
May 1 to May 31 | 6,097,563 | 12.01 | 0 | ||
June 1 to June 30 | 3,150,000 | 12.33 | 0 | ||
July 1 to July 31 | 7,250,000 | 12.25 | 4,097 | ||
August 1 to August 31 | 9,147,736 | 11.86 | 0 | ||
September 1 to September 30 | 6,800,000 | 11.61 | 0 | ||
October 1 to October 31 | 5,950,000 | 11.38 | 0 | ||
November 1 to November 30 | 2,800,000 | 11.97 | 0 | ||
December 1 to December 31 | 13,850,000 | 11.93 | 0 | ||
Total | 100,723,415 | 11.67 | 129,177 |
(1) |
a) | Coordinate the work of the External Directors and echo the concerns of such Directors. |
b) | Request the Chairman of the Board of Directors to call a meeting of the Board when appropriate in accordance with the rules of corporate governance. |
c) | Request the inclusion of certain matters in the agenda of the meetings of the Board of Directors. |
d) | Oversee the evaluation by the Board of Directors of the Chairman thereof. |
Exhibit Number | Description | |
1.1 | Amended and Restated bylaws (English translation) | |
4.1 | Shareholders’ Agreement dated as of April 28, 2007 among Telefónica S.A., Assicurazioni Generali S.p.A., Sintonia S.A., Intesa Sanpaolo S.p.A., Mediobanca S.p.A.* | |
4.2 | Co-investment Agreement dated as of April 28, 2007 among Telefónica S.A., Assicurazioni Generali S.p.A., Sintonia S.A., Intesa Sanpaolo S.p.A., Mediobanca S.p.A.* | |
4.3 | Call Option Agreement, dated November 6, 2007, between Telefónica, S.A. and Telco** | |
4.4 | Amendment to the Shareholders’ Agreement and Bylaws, dated November 19, 2007 among Telefónica S.A., Generali, Sintonia S.A., Intesa Sanpaolo S.p.A. and Mediobanca S.p.A.** | |
4.5 | Renewal Agreement, dated October 28, 2009, by and among Telefónica S.A., Assicurazioni Generali S.p.A. (on its own behalf and on behalf of its subsidiaries Generali Vie S.A., Alleanza Toro S.p.A., INA Assitalia S.p.A., Generali Lebensversicherung A.G.), Intesa Sanpaolo S.p.A. and Mediobanca S.p.A. | |
4.6 | Amendment Deed to the Call Option, dated October 28, 2009, by and between Telefónica S.A. and Telco S.p.A. | |
4.7 | Subscription Agreement, dated September 6, 2009 between Telefónica, S.A. and China Unicom (Hong Kong) Limited**** | |
4.8 | Enhanced Strategic Alliance Agreement dated January 23, 2011 between Telefónica, S.A. and China Unicom (Hong Kong) | |
4.9 | Amendment | |
4.10 | Second Renewal Agreement, dated February 29, 2012, by and among Telefónica S.A., Assicurazioni Generali S.p.A. (on its own behalf and on behalf of its subsidiaries Generali Vie S.A., Alleanza Toro S.p.A., INA Assitalia S.p.A. and Generali Lebensversicherung AG), Intesa Sanpaolo S.p.A. and Mediobanca S.p.A. | |
4.11 | Amendment Deed to Call Option Agreement, dated February 29, 2012, between Telefónica and | |
Share Purchase Agreement for the Sale and Purchase of Shares in China Unicom (Hong Kong) Limited, dated June 10, 2012 and Supplemental Agreement, dated July 21, 2012, between Telefónica, Internacional S.A.U. and a 100% owned subsidiary of China United Network Communications Group Company Limited******** | ||
4.13 | Agreement for the Sale and Purchase of Customer Relationship Management business, Atento, dated October 11, 2012******** | |
4.14 | Share Purchase Agreement entered into between Koninkijke KPN N.V., Telefónica S.A. and Telefonica Deutschland Holding AG, dated July 23, 2013 (1)********* | |
4.15 | First Amendment Agreement to the Share Purchase Agreement entered into between Koninkijke KPN N.V., Telefónica S.A. and Telefonica Deutchsland Holding AG, dated July 23, 2013, dated August 26, 2013.********* | |
4.16 | Stock Purchase Agreement and Other Covenants, dated September 18, 2014, by and among Virendi, S.A., Société d’Investissements et de Gestion 72 S.A. and Société d’Investissements et de Gestion 108 SAS, as the sellers, Telefónica Brasil S.A., as purchaser, GVT Participações S.A., as target, Global Village Telecom S.A. and Telefónica, S.A.(1) | |
4.17 | Long Term Incentive Plan Terms | |
8.1 | Subsidiaries of Telefónica (see Note 1 to the Consolidated Financial Statements and Appendix | |
12.1 | Certification of César Alierta Izuel, Chief Executive Officer of Telefónica, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
12.2 | Certification of Miguel Escrig Meliá, Chief Financial Officer of Telefónica, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
13.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
15.1 | Consent of Independent Registered Public Accounting Firm |
* | Incorporated by reference to Telefónica’s |
Incorporated by reference to Telefónica’s Schedule 13D/A filed on November 26, 2007. |
*** | Incorporated by reference to Telefónica’s Schedule 13D/A filed on November 23, 2009. |
**** | Incorporated by reference to Telefónica’s Schedule 13D/A filed on September 17, 2009. |
***** | Incorporated by reference to Telefónica’s Schedule 13D filed on February 8, 2011. |
****** | Incorporated by reference to Telefónica’s Schedule 13 D/A filed on March 12, 2012. |
******* | Incorporated by reference to Telefónica’s Schedule 13 D/A filed on June 13, 2012 and Schedule 13 D/A filed on August 1, 2012, respectively. |
******** | Incorporatedby reference to Telefónica’s Annual Report on Form 20-F for the fiscal year ended December 31, 2012. |
********* | Incorporated by reference to Telefónica’s Annual Report on Form 20-F for the fiscal year ended December 31, |
(1) | Confidential treatment has been requested with respect to |
TELEFÓNICA, S.A. | ||||
By: | /s/ César Alierta Izuel | |||
Name: | César Alierta Izuel | |||
Title: | Chief Executive Officer |
TELEFÓNICA, S.A. | ||||
By: | /s/ Miguel Escrig Meliá | |||
Name: | Miguel Escrig Meliá | |||
Title: | Chief Financial Officer |
/s/ Ignacio Viota del Corte Ignacio Viota del Corte | |
/s/ Ignacio Viota del Corte Ignacio Viota del Corte | |
ASSETS | NOTE | 2011 | 2010 | ||||||
A) NON-CURRENT ASSETS | 108,800 | 108,721 | |||||||
Intangible assets | (Note 6) | 24,064 | 25,026 | ||||||
Goodwill | (Note 7) | 29,107 | 29,582 | ||||||
Property, plant and equipment | (Note 8) | 35,463 | 35,797 | ||||||
Investment properties | 6 | 5 | |||||||
Investments in associates | (Note 9) | 5,065 | 5,212 | ||||||
Non-current financial assets | (Note 13) | 8,678 | 7,406 | ||||||
Deferred tax assets | (Note 17) | 6,417 | 5,693 | ||||||
B) CURRENT ASSETS | 20,823 | 21,054 | |||||||
Inventories | 1,164 | 1,028 | |||||||
Trade and other receivables | (Note 11) | 11,331 | 12,426 | ||||||
Current financial assets | (Note 13) | 2,625 | 1,574 | ||||||
Tax receivables | (Note 17) | 1,567 | 1,331 | ||||||
Cash and cash equivalents | (Note 13) | 4,135 | 4,220 | ||||||
Non-current assets held for sale | 1 | 475 | |||||||
TOTAL ASSETS (A+B) | 129,623 | 129,775 | |||||||
EQUITY AND LIABILITIES | NOTE | 2011 | 2010 | ||||||
A) EQUITY | 27,383 | 31,684 | |||||||
Equity attributable to equity holders of the parent | 21,636 | 24,452 | |||||||
Non-controlling interests | (Note 12) | 5,747 | 7,232 | ||||||
B) NON-CURRENT LIABILITIES | 69,662 | 64,599 | |||||||
Non-current interest-bearing debt | (Note 13) | 55,659 | 51,356 | ||||||
Non-current trade and other payables | (Note 14) | 2,092 | 2,304 | ||||||
Deferred tax liabilities | (Note 17) | 4,739 | 6,074 | ||||||
Non-current provisions | (Note 15) | 7,172 | 4,865 | ||||||
C) CURRENT LIABILITIES | 32,578 | 33,492 | |||||||
Current interest-bearing debt | (Note 13) | 10,652 | 9,744 | ||||||
Current trade and other payables | (Note 14) | 17,855 | 19,251 | ||||||
Current tax payables | (Note 17) | 2,568 | 2,822 | ||||||
Current provisions | (Note 15) | 1,503 | 1,675 | ||||||
TOTAL EQUITY AND LIABILITIES (A+B+C) | 129,623 | 129,775 |
INCOME STATEMENT | NOTE | 2011 | 2010 | 2009 | |||||||||
Revenues | (Note 19) | 62,837 | 60,737 | 56,731 | |||||||||
Other income | (Note 19) | 2,107 | 5,869 | 1,645 | |||||||||
Supplies | (18,256 | ) | (17,606 | ) | (16,717 | ) | |||||||
Personnel expenses | (11,080 | ) | (8,409 | ) | (6,775 | ) | |||||||
Other expenses | (Note 19) | (15,398 | ) | (14,814 | ) | (12,281 | ) | ||||||
Depreciation and amortization | (Note 19) | (10,146 | ) | (9,303 | ) | (8,956 | ) | ||||||
OPERATING INCOME | 10,064 | 16,474 | 13,647 | ||||||||||
Share of (loss) profit of associates | (Note 9) | (635 | ) | 76 | 47 | ||||||||
Finance income | 827 | 792 | 814 | ||||||||||
Exchange gains | 2,795 | 3,508 | 3,085 | ||||||||||
Finance costs | (3,609 | ) | (3,329 | ) | (3,581 | ) | |||||||
Exchange losses | (2,954 | ) | (3,620 | ) | (3,625 | ) | |||||||
Net financial expense | (Note 16) | (2,941 | ) | (2,649 | ) | (3,307 | ) | ||||||
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 6,488 | 13,901 | 10,387 | ||||||||||
Corporate income tax | (Note 17) | (301 | ) | (3,829 | ) | (2,450 | ) | ||||||
PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS | 6,187 | 10,072 | 7,937 | ||||||||||
Profit after taxes from discontinued operations | (Note 18) | - | - | - | |||||||||
PROFIT FOR THE YEAR | 6,187 | 10,072 | 7,937 | ||||||||||
Non-controlling interests | (Note 12) | (784 | ) | 95 | (161 | ) | |||||||
PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 5,403 | 10,167 | 7,776 | ||||||||||
Basic and diluted earnings per share from continuing operations attributable to equity holders of the parent (euros) | (Note 19) | 1.20 | 2.25 | 1.71 | |||||||||
Basic and diluted earnings per share attributable to equity holders of the parent (euros) | (Note 19) | 1.20 | 2.25 | 1.71 |
Consolidated Statements of financial position | |||
Millions of euros | NOTE | 2014 | 2013 |
ASSETS | |||
A) NON-CURRENT ASSETS | 99,435 | 89,597 | |
Intangible assets | (Note 6) | 22,353 | 18,548 |
Goodwill | (Note 7) | 25,111 | 23,434 |
Property, plant and equipment | (Note 8) | 33,343 | 31,040 |
Investments accounted for by the equity method | (Note 9) | 788 | 2,424 |
Non-current financial assets | (Note 13) | 10,973 | 7,775 |
Deferred tax assets | (Note 17) | 6,867 | 6,376 |
B) CURRENT ASSETS | 22,864 | 29,265 | |
Inventories | 934 | 985 | |
Trade and other receivables | (Note 11) | 10,606 | 9,640 |
Tax receivables | (Note 17) | 1,749 | 1,664 |
Current financial assets | (Note 13) | 2,932 | 2,117 |
Cash and cash equivalents | (Note 13) | 6,529 | 9,977 |
Non-current assets held for sale | (Note 2) | 114 | 4,882 |
TOTAL ASSETS (A+B) | 122,299 | 118,862 | |
NOTE | 2014 | 2013 | |
EQUITY AND LIABILITIES | |||
A) EQUITY | 30,289 | 27,482 | |
Equity attributable to equity holders of the parent and other holders of equity instruments | (Note 12) | 21,115 | 21,185 |
Equity attributable to non-controlling interests | (Note 12) | 9,174 | 6,297 |
B) NON-CURRENT LIABILITIES | 62,311 | 62,236 | |
Non-current interest-bearing debt | (Note 13) | 50,688 | 51,172 |
Non-current trade and other payables | (Note 14) | 2,377 | 1,701 |
Deferred tax liabilities | (Note 17) | 2,566 | 3,063 |
Non-current provisions | (Note 15) | 6,680 | 6,300 |
C) CURRENT LIABILITIES | 29,699 | 29,144 | |
Current interest-bearing debt | (Note 13) | 9,094 | 9,527 |
Current trade and other payables | (Note 14) | 16,943 | 15,221 |
Current tax payables | (Note 17) | 2,026 | 2,203 |
Current provisions | (Note 15) | 1,595 | 1,271 |
Liabilities associated with non-current assets held for sale | (Note 2) | 41 | 922 |
TOTAL EQUITY AND LIABILITIES (A+B+C) | 122,299 | 118,862 | |
The accompanying Notes 1 to 23 and Appendices I to VII are an integral part of these consolidated statements of financial position. |
Consolidated income statements | ||||
Millions of euros | NOTES | 2014 | 2013 | 2012 |
INCOME STATEMENTS | ||||
Revenues | (Note 18) | 50,377 | 57,061 | 62,356 |
Other income | (Note 18) | 1,707 | 1,693 | 2,323 |
Supplies | (15,182) | (17,041) | (18,074) | |
Personnel expenses | (7,098) | (7,208) | (8,569) | |
Other expenses | (Note 18) | (14,289) | (15,428) | (16,805) |
Depreciation and amortization | (Note 18) | (8,548) | (9,627) | (10,433) |
OPERATING INCOME | 6,967 | 9,450 | 10,798 | |
Share of loss of investments accounted for by the equity method | (Note 9) | (510) | (304) | (1,275) |
Finance income | 992 | 933 | 963 | |
Exchange gains | 4,110 | 3,323 | 2,382 | |
Finance costs | (3,511) | (3,629) | (4,025) | |
Exchange losses | (4,413) | (3,493) | (2,979) | |
Net financial expense | (Note 16) | (2,822) | (2,866) | (3,659) |
PROFIT BEFORE TAX | 3,635 | 6,280 | 5,864 | |
Corporate income tax | (Note 17) | (383) | (1,311) | (1,461) |
PROFIT FOR THE YEAR | 3,252 | 4,969 | 4,403 | |
Non-controlling interests | (Note 12) | (251) | (376) | (475) |
PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT | 3,001 | 4,593 | 3,928 | |
Basic and diluted earnings per share attributable to equity holders of the parent (euros) | (Note 18) | 0.61 | 0.99 | 0.85 |
The accompanying Notes 1 to 23 and Appendices I to VII are an integral part of these consolidated income statements. |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | Year ended December 31 | |||||||||||
(MILLIONS OF EUROS) | 2011 | 2010 | 2009 | |||||||||
Profit for the year | 6,187 | 10,072 | 7,937 | |||||||||
Other comprehensive income (loss) | ||||||||||||
(Losses) gains on measurement of available-for-sale investments | (13 | ) | (61 | ) | 638 | |||||||
Reclassification of losses (gains) included in the income statement | 3 | 202 | (4 | ) | ||||||||
Income tax impact | 3 | (57 | ) | (105 | ) | |||||||
(7 | ) | 84 | 529 | |||||||||
Losses on hedges | (921 | ) | (291 | ) | (794 | ) | ||||||
Reclassification of losses (gains) included in the income statement | 210 | 73 | (77 | ) | ||||||||
Income tax impact | 217 | 62 | 262 | |||||||||
(494 | ) | (156 | ) | (609 | ) | |||||||
Translation differences | (1,265 | ) | 820 | 1,982 | ||||||||
Actuarial gains (losses) and impact of limit on assets for defined benefit pension plans (Note 15) | (85 | ) | (94 | ) | (189 | ) | ||||||
Income tax impact | 28 | 35 | 53 | |||||||||
(57 | ) | (59 | ) | (136 | ) | |||||||
Share of income (loss) recognized directly in equity of associates and others | 58 | (84 | ) | 233 | ||||||||
Reclassification of (gains) losses included in the income statement | - | - | - | |||||||||
Income tax impact | (9 | ) | 23 | 2 | ||||||||
49 | (61 | ) | 235 | |||||||||
Total other comprehensive income (loss) | (1,774 | ) | 628 | 2,001 | ||||||||
Total comprehensive income recognized in the year | 4,413 | 10,700 | 9,938 | |||||||||
Attributable to: | ||||||||||||
Equity holders of the parent | 4,002 | 10,409 | 9,418 | |||||||||
Non-controlling interests | 411 | 291 | 520 | |||||||||
4,413 | 10,700 | 9,938 |
Consolidated statements of comprehensive income | 2014 | 2013 | 2012 |
Millions of euros | |||
Profit for the year | 3,252 | 4,969 | 4,403 |
Other comprehensive income (loss) | |||
(Losses) gains on measurement of available-for-sale investments | (45) | 32 | (49) |
Income tax impact | 7 | (10) | 4 |
Reclassification of losses included in the income statement | − | 51 | 46 |
Income tax impact | − | (15) | (3) |
(38) | 58 | (2) | |
(Losses) gains on hedges | (507) | 831 | (1,414) |
Income tax impact | 127 | (247) | 376 |
Reclassification of losses included in the income statement (Note 16) | 163 | 121 | 173 |
Income tax impact | (49) | (36) | (5) |
(266) | 669 | (870) | |
Share of losses recognized directly in equity of associates and others | (27) | (29) | (27) |
Income tax impact | 3 | 4 | 9 |
Reclassification of losses included in the income statement | 103 | 1 | 4 |
Income tax impact | (24) | − | − |
55 | (24) | (14) | |
Translation differences | (2,810) | (6,454) | (1,862) |
Total other comprehensive loss recognized in the period (Items that may be reclassified subsequently to profit or loss) | (3,059) | (5,751) | (2,748) |
Actuarial losses and impact of limit on assets for defined benefit pension plans | (173) | (49) | (154) |
Income tax impact | 38 | 1 | 39 |
(135) | (48) | (115) | |
Total other comprehensive loss recognized in the period (Items that will not be reclassified subsequently to profit or loss) | (135) | (48) | (115) |
Total comprehensive income (loss) recognized in the year | 58 | (830) | 1,540 |
Attributable to: | |||
Equity holders of the parent and other holders of equity instruments | (258) | (434) | 1,652 |
Non-controlling interests | 316 | (396) | (112) |
58 | (830) | 1,540 | |
The accompanying Notes 1 to 23 and Appendices I to VII are an integral part of these consolidated statements of comprehensive income. | |||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | Attributable to equity holders of the parent and other holders of equity instruments | Non-controlling interests (Note 12) | Total equity | |||||||||||||||||||||||
Millions of euros | Share capital | Share premium | Treasury Shares | Other equity instruments | Legal reserve | Retained earnings | Available-for-sale investments | Hedges | Equity of associates and others | Translation differences | Total | |||||||||||||||
Financial position at December 31, 2013 | 4,551 | 460 | (544) | 2,466 | 984 | 22,517 | 94 | (37) | (31) | (9,275) | 21,185 | 6,297 | 27,482 | |||||||||||||
Profit for the year | − | − | − | − | − | 3,001 | − | − | − | − | 3,001 | 251 | 3,252 | |||||||||||||
Other comprehensive loss | − | − | − | − | − | (121) | (39) | (297) | 55 | (2,857) | (3,259) | 65 | (3,194) | |||||||||||||
Total comprehensive income | − | − | − | − | − | 2,880 | (39) | (297) | 55 | (2,857) | (258) | 316 | 58 | |||||||||||||
Dividends distribution (Note 12) | 106 | − | − | − | − | (2,138) | − | − | − | − | (2,032) | (406) | (2,438) | |||||||||||||
Net movement in treasury shares | − | − | (1,042) | − | − | (113) | − | − | − | − | (1,155) | − | (1,155) | |||||||||||||
Acquisitions and disposals of non-controlling interests and business combinations (Note 5) | − | − | − | − | − | (307) | − | − | − | − | (307) | 2,965 | 2,658 | |||||||||||||
Undated Deeply Subordinated Securities and notes mandatorily convertible (Note 12) | − | − | − | 3,885 | − | (129) | − | − | − | − | 3,756 | − | 3,756 | |||||||||||||
Other movements | − | − | − | − | − | (74) | − | − | − | − | (74) | 2 | (72) | |||||||||||||
Financial position at December 31, 2014 | 4,657 | 460 | (1,586) | 6,351 | 984 | 22,636 | 55 | (334) | 24 | (12,132) | 21,115 | 9,174 | 30,289 | |||||||||||||
Financial position at December 31, 2012 | 4,551 | 460 | (788) | − | 984 | 19,569 | 36 | (715) | (7) | (3,629) | 20,461 | 7,200 | 27,661 | |||||||||||||
Profit for the year | − | − | − | − | − | 4,593 | − | − | − | − | 4,593 | 376 | 4,969 | |||||||||||||
Other comprehensive loss | − | − | − | − | − | (48) | 58 | 678 | (24) | (5,691) | (5,027) | (772) | (5,799) | |||||||||||||
Total comprehensive loss | − | − | − | − | − | 4,545 | 58 | 678 | (24) | (5,691) | (434) | (396) | (830) | |||||||||||||
Dividends distribution (Note 12) | − | − | − | − | − | (1,588) | − | − | − | − | (1,588) | (739) | (2,327) | |||||||||||||
Net movement in treasury shares | − | − | 244 | − | − | (92) | − | − | − | − | 152 | − | 152 | |||||||||||||
Acquisitions and disposals of non-controlling interests and business combinations (Note 5) | − | − | − | − | − | 66 | − | − | − | 45 | 111 | 238 | 349 | |||||||||||||
Undated Deeply Subordinated Securities (Note 12) | − | − | − | 2,466 | − | − | − | − | − | − | 2,466 | − | 2,466 | |||||||||||||
Other movements | − | − | − | − | − | 17 | − | − | − | − | 17 | (6) | 11 | |||||||||||||
Financial position at December 31, 2013 | 4,551 | 460 | (544) | 2,466 | 984 | 22,517 | 94 | (37) | (31) | (9,275) | 21,185 | 6,297 | 27,482 | |||||||||||||
Financial position at December 31, 2011 | 4,564 | 460 | (1,782) | − | 984 | 19,374 | 38 | 154 | 7 | (2,163) | 21,636 | 5,747 | 27,383 | |||||||||||||
Profit for the year | − | − | − | − | − | 3,928 | − | − | − | − | 3,928 | 475 | 4,403 | |||||||||||||
Other comprehensive loss | − | − | − | − | − | (112) | (2) | (870) | (14) | (1,278) | (2,276) | (587) | (2,863) | |||||||||||||
Total comprehensive income | − | − | − | − | − | 3,816 | (2) | (870) | (14) | (1,278) | 1,652 | (112) | 1,540 | |||||||||||||
Dividends distribution (Note 12) | 71 | − | − | − | − | (2,907) | − | − | − | − | (2,836) | (442) | (3,278) | |||||||||||||
Net movement in treasury shares | − | − | (327) | − | − | (299) | − | − | − | − | (626) | − | (626) | |||||||||||||
Acquisitions and disposals of non-controlling interests and business combinations (Note 5) | − | − | − | − | − | 1,170 | − | 1 | − | (188) | 983 | 1,800 | 2,783 | |||||||||||||
Capital reduction | (84) | − | 1,321 | − | − | (1,237) | − | − | − | − | − | − | − | |||||||||||||
Other movements | − | − | − | − | − | (348) | − | − | − | − | (348) | 207 | (141) | |||||||||||||
Financial position at December 31, 2012 | 4,551 | 460 | (788) | − | 984 | 19,569 | 36 | (715) | (7) | (3,629) | 20,461 | 7,200 | 27,661 | |||||||||||||
The accompanying Notes 1 to 23 and Appendices I to VII are an integral part of these consolidated statements of changes in equity. |
Consolidated statements of cash flows | ||||
Millions of euros | NOTES | 2014 | 2013 | 2012 |
Cash flows from operating activities | ||||
Cash received from customers | 61,522 | 69,149 | 75,962 | |
Cash paid to suppliers and employees | (45,612) | (50,584) | (55,858) | |
Dividends received | 48 | 49 | 85 | |
Net interest and other financial expenses paid | (2,578) | (2,464) | (2,952) | |
Taxes paid | (1,187) | (1,806) | (2,024) | |
Net cash from operating activities | (Note 20) | 12,193 | 14,344 | 15,213 |
Cash flows from investing activities | ||||
Proceeds on disposals of property, plant and equipment and intangible assets | 340 | 561 | 939 | |
Payments on investments in property, plant and equipment and intangible assets | (9,205) | (9,674) | (9,481) | |
Proceeds on disposals of companies, net of cash and cash equivalents disposed | 3,615 | 260 | 1,823 | |
Payments on investments in companies, net of cash and cash equivalents acquired | (5,020) | (398) | (37) | |
Proceeds on financial investments not included under cash equivalents | 302 | 50 | 30 | |
Payments on financial investments not included under cash equivalents | (247) | (386) | (834) | |
Proceeds (payments) on placements of cash surpluses not included under cash equivalents | 217 | (314) | (318) | |
Government grants received | 30 | 1 | 1 | |
Net cash used in investing activities | (Note 20) | (9,968) | (9,900) | (7,877) |
Cash flows from financing activities | ||||
Dividends paid | (Note 12) | (2,328) | (2,182) | (3,273) |
Transactions with equity holders | (427) | 65 | 656 | |
Operations with other equity holders | (Note 12) | 3,713 | 2,466 | − |
Proceeds on issue of debentures and bonds, and other debts | (Note 13) | 4,453 | 5,634 | 8,090 |
Proceeds on loans, borrowings and promissory notes | 4,290 | 3,231 | 6,002 | |
Cancellation of debentures and bonds, and other debts | (Note 13) | (5,116) | (5,667) | (4,317) |
Repayments of loans, borrowings and promissory notes | (8,604) | (6,232) | (8,401) | |
Payments on financed spectrum licenses | (22) | − | − | |
Net cash used in financing activities | (Note 20) | (4,041) | (2,685) | (1,243) |
Effect of changes in exchange rates | (1,616) | (1,468) | (382) | |
Effect of changes in consolidation methods | (16) | (161) | 1 | |
Net increase (decrease) in cash and cash equivalents during the year | (3,448) | 130 | 5,712 | |
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 9,977 | 9,847 | 4,135 | |
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | (Note 13) | 6,529 | 9,977 | 9,847 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS WITH THE STATEMENT OF FINANCIAL POSITION | ||||
BALANCE AT JANUARY 1 | 9,977 | 9,847 | 4,135 | |
Cash on hand and at banks | 7,834 | 7,973 | 3,411 | |
Other cash equivalents | 2,143 | 1,874 | 724 | |
BALANCE AT DECEMBER 31 | (Note 13) | 6,529 | 9,977 | 9,847 |
Cash on hand and at banks | 4,912 | 7,834 | 7,973 | |
Other cash equivalents | 1,617 | 2,143 | 1,874 |
The accompanying Notes 1 to |
cash flows. |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (MILLIONS OF EUROS) | Attributable to equity holders of the parent | Non-controlling interests(Note 12) | Total equity | |||||||||||||||||||||||||||||||||||||||||||||||||
Share capital | Share premium | Legal reserve | Revaluation reserve | Treasury shares | Retained earnings | Available-for-sale investments | Hedges | Equity of associates | Translation differences | Total | ||||||||||||||||||||||||||||||||||||||||||
Financial position at December 31, 2010 | 4,564 | 460 | 984 | 141 | (1,376 | ) | 19,971 | 45 | 648 | (42 | ) | (943 | ) | 24,452 | 7,232 | 31,684 | ||||||||||||||||||||||||||||||||||||
Profit for the year | - | - | - | - | 5,403 | - | - | - | - | 5,403 | 784 | 6,187 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | - | - | - | - | (52 | ) | (7 | ) | (494 | ) | 49 | (897 | ) | (1,401 | ) | (373 | ) | (1,774 | ) | |||||||||||||||||||||||||||||||||
Total comprehensive income | - | - | - | - | 5,351 | (7 | ) | (494 | ) | 49 | (897 | ) | 4,002 | 411 | 4,413 | |||||||||||||||||||||||||||||||||||||
Dividends paid (Note 12) | - | - | - | - | (6,852 | ) | - | - | - | - | (6,852 | ) | (876 | ) | (7,728 | ) | ||||||||||||||||||||||||||||||||||||
Net movement in treasury shares | - | - | - | - | (777 | ) | - | - | - | - | - | (777 | ) | - | (777 | ) | ||||||||||||||||||||||||||||||||||||
Acquisitions and disposals of non-controlling interests and business combinations (Note 5) | - | - | - | - | 984 | - | - | - | (323 | ) | 661 | (1,200 | ) | (539 | ) | |||||||||||||||||||||||||||||||||||||
Other movements | - | - | - | (15 | ) | 371 | (206 | ) | - | - | - | - | 150 | 180 | 330 | |||||||||||||||||||||||||||||||||||||
Financial position at December 31, 2011 | 4,564 | 460 | 984 | 126 | (1,782 | ) | 19,248 | 38 | 154 | 7 | (2,163 | ) | 21,636 | 5,747 | 27,383 | �� | ||||||||||||||||||||||||||||||||||||
Financial position at December 31, 2009 | 4,564 | 460 | 984 | 157 | (527 | ) | 16,685 | (39 | ) | 804 | 19 | (1,373 | ) | 21,734 | 2,540 | 24,274 | ||||||||||||||||||||||||||||||||||||
Profit for the year | - | - | - | - | 10,167 | - | - | - | - | 10,167 | (95 | ) | 10,072 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | - | - | - | - | - | (55 | ) | 84 | (156 | ) | (61 | ) | 430 | 242 | 386 | 628 | ||||||||||||||||||||||||||||||||||||
Total comprehensive income | - | - | - | - | - | 10,112 | 84 | (156 | ) | (61 | ) | 430 | 10,409 | 291 | 10,700 | |||||||||||||||||||||||||||||||||||||
Dividends paid (Note 12) | - | - | - | - | - | (5,872 | ) | - | - | - | (5,872 | ) | (440 | ) | (6,312 | ) | ||||||||||||||||||||||||||||||||||||
Net movement in treasury shares | - | - | - | - | (849 | ) | - | - | - | - | - | (849 | ) | - | (849 | ) | ||||||||||||||||||||||||||||||||||||
Acquisitions and disposals of non-controlling interests and business combinations (Note 5) | - | - | - | - | - | - | - | - | - | - | - | 4,307 | 4,307 | |||||||||||||||||||||||||||||||||||||||
Other movements | - | - | - | (16 | ) | - | (954 | ) | - | - | - | - | (970 | ) | 534 | (436 | ) | |||||||||||||||||||||||||||||||||||
Financial position at December 31, 2010 | 4,564 | 460 | 984 | 141 | (1,376 | ) | 19,971 | 45 | 648 | (42 | ) | (943 | ) | 24,452 | 7,232 | 31,684 | ||||||||||||||||||||||||||||||||||||
Financial position at December 31, 2008 | 4,705 | 460 | 984 | 172 | (2,179 | ) | 16,069 | (566 | ) | 1,413 | (216 | ) | (3,611 | ) | 17,231 | 2,331 | 19,562 | |||||||||||||||||||||||||||||||||||
Profit for the year | - | - | - | - | - | 7,776 | - | - | - | - | 7,776 | 161 | 7,937 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | - | - | - | - | - | (136 | ) | 527 | (609 | ) | 235 | 1,625 | 1,642 | 359 | 2,001 | |||||||||||||||||||||||||||||||||||||
Total comprehensive income | 7,640 | 527 | (609 | ) | 235 | 1,625 | 9,418 | 520 | 9,938 | |||||||||||||||||||||||||||||||||||||||||||
Dividends paid (Note 12) | - | - | - | - | - | (4,557 | ) | - | - | - | - | (4,557 | ) | (295 | ) | (4,852 | ) | |||||||||||||||||||||||||||||||||||
Hyperinflation restatement to 01/01/09 (Note 2) | 613 | 613 | - | 613 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net movement in treasury shares | - | - | - | - | (656 | ) | - | - | - | - | - | (656 | ) | - | (656 | ) | ||||||||||||||||||||||||||||||||||||
Acquisitions and disposals of non-controlling interests | - | - | - | - | - | - | - | - | - | - | - | (122 | ) | (122 | ) | |||||||||||||||||||||||||||||||||||||
Capital reduction (Note 12) | (141 | ) | - | - | - | 2,308 | (2,167 | ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Other movements | - | - | - | (15 | ) | - | (300 | ) | - | - | - | - | (315 | ) | 106 | (209 | ) | |||||||||||||||||||||||||||||||||||
Financial position at December 31, 2009 | 4,564 | 460 | 984 | 157 | (527 | ) | 16,685 | (39 | ) | 804 | 19 | (1,373 | ) | 21,734 | 2,540 | 24,274 |
NOTE | 2011 | 2010 | 2009 | ||||||||||
Cash flows from operating activities | |||||||||||||
Cash received from customers | 77,222 | 72,867 | 67,358 | ||||||||||
Cash paid to suppliers and employees | (55,769 | ) | (51,561 | ) | (46,198 | ) | |||||||
Dividends received | 82 | 136 | 100 | ||||||||||
Net interest and other financial expenses paid | (2,093 | ) | (2,154 | ) | (2,170 | ) | |||||||
Taxes paid | (1,959 | ) | (2,616 | ) | (2,942 | ) | |||||||
Net cash from operating activities | (Note 23) | 17,483 | 16,672 | 16,148 | |||||||||
Cash flows from investing activities | |||||||||||||
Proceeds on disposals of property, plant and equipment and intangible assets | 811 | 315 | 242 | ||||||||||
Payments on investments in property, plant and equipment and intangible assets | (9,085 | ) | (8,944 | ) | (7,593 | ) | |||||||
Proceeds on disposals of companies, net of cash and cash equivalents disposed | 4 | 552 | 34 | ||||||||||
Payments on investments in companies, net of cash and cash equivalents acquired | (2,948 | ) | (5,744 | ) | (48 | ) | |||||||
Proceeds on financial investments not included under cash equivalents | 23 | 173 | 6 | ||||||||||
Payments made on financial investments not included under cash equivalents | (669 | ) | (1,599 | ) | (1,411 | ) | |||||||
Payments from cash surpluses not included under cash equivalents | (646 | ) | (621 | ) | (548 | ) | |||||||
Government grants received | 13 | 7 | 18 | ||||||||||
Net cash used in investing activities | (Note 23) | (12,497 | ) | (15,861 | ) | (9,300 | ) | ||||||
Cash flows from financing activities | |||||||||||||
Dividends paid | (Note 12) | (7,567 | ) | (6,249 | ) | (4,838 | ) | ||||||
Transactions with equity holders | (399 | ) | (883 | ) | (947 | ) | |||||||
Proceeds on issue of debentures and bonds | (Note 13) | 4,582 | 6,131 | 8,617 | |||||||||
Proceeds on loans, borrowings and promissory notes | 4,387 | 9,189 | 2,330 | ||||||||||
Cancellation of debentures and bonds | (Note 13) | (3,235 | ) | (5,482 | ) | (1,949 | ) | ||||||
Repayments of loans, borrowings and promissory notes | (2,680 | ) | (7,954 | ) | (5,494 | ) | |||||||
Net cash used in financing activities | (Note 23) | (4,912 | ) | (5,248 | ) | (2,281 | ) | ||||||
Effect of foreign exchange rate changes on collections and payments | (169 | ) | (463 | ) | 269 | ||||||||
Effect of changes in consolidation methods | 10 | 7 | - | ||||||||||
Net (decrease) increase in cash and cash equivalents during the year | (85 | ) | (4,893 | ) | 4,836 | ||||||||
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 4,220 | 9,113 | 4,277 | ||||||||||
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | (Note 13) | 4,135 | 4,220 | 9,113 | |||||||||
RECONCILIATION OF CASH AND CASH EQUIVALENTS WITH THE STATEMENT OF FINANCIAL POSITION | |||||||||||||
BALANCE AT JANUARY 1 | 4,220 | 9,113 | 4,277 | ||||||||||
Cash on hand and at banks | 3,226 | 3,830 | 3,236 | ||||||||||
Other cash equivalents | 994 | 5,283 | 1,041 | ||||||||||
BALANCE AT DECEMBER 31 | (Note 13) | 4,135 | 4,220 | 9,113 | |||||||||
Cash on hand and at banks | 3,411 | 3,226 | 3,830 | ||||||||||
Other cash equivalents | 724 | 994 | 5,283 | ||||||||||
· | As part of the decrease mentioned in the preceding paragraph, the value in euros of the net financial assets denominated in bolivars decreased by approximately 2,700 million euros, as per the balance as of December 31, 2014. |
· | The results from the Telefónica’s subsidiaries in Venezuela have been translated at the new exchange rate. This implies a reduction in Operating income before depreciation and amortization (OIBDA) and profit for the year of, approximately, 1,730 and 660 million euros, respectively. |
Millions of euros | |
Non-current assets | |
Current assets | 412 |
Non-current liabilities | 280 |
Current liabilities | 436 |
Millions of euros | |
Non-current assets | |
Current assets | 191 |
Non-current liabilities | 35 |
Current liabilities | 171 |
After initial recognition, goodwill is carried at cost, less any accumulated impairment losses. Goodwill |
· | Expenditures incurred in developing new products to be available for sale or use within the Group’s own network, and whose future economic viability is reasonably certain (“Development costs”), are amortized on a straight-line basis over the period during which the related development project is expected to generate economic benefits, upon its completion. |
· | Licenses granted to the Telefónica Group by various public authorities to provide telecommunications services and the value allocated to licenses held by certain companies at the time they were included in the Telefónica Group (“Service concession arrangements and licenses”) are amortized on a straight-line basis over the duration of related licenses from the moment commercial operation begins. |
· | The allocation of acquisition costs attributable to customers acquired in business combinations, as well as the acquisition value of this type of assets in a third-party transaction for consideration (“Customer base”) are amortized on a straight-line basis over the estimated period of the customer relationship. |
· | Software is amortized on a straight-line basis over its useful life, generally estimated to be between two and five years. |
e) | Property, plant and equipment |
Years of estimated | |
useful life | |
Buildings | 25 – 40 |
Plant and machinery | 10 – 15 |
Telephone installations, networks and subscriber equipment | 5 – 20 |
Furniture, tools and other items | 2 – 10 |
Rates | 2011 | 2010 |
Businesses in Spain | 0.51%-0.59% | 0.91%-1.10% |
Businesses in Latin America | 1.75%-2.58% | 1.66%-2.56% |
Businesses in Europe | 0.96%-1.07% | 1.28%-1.46% |
Rates | 2011 | 2010 |
Businesses in Spain | 7.5%-14.8% | 7.8%-8.6% |
Businesses in Latin America | 7.3%-17.8% | 7.2%-17.3% |
Businesses in Europe | 5.9%-11.2% | 6.3%-10.9% |
· | IAS 32 Offsetting Financial Assets and Financial Liabilities - |
· | IFRIC Interpretation 21 Levies (IFRIC 21) |
· | IAS 39 Novation of Derivatives and Continuation of Hedge Accounting – Amendments to IAS 39 |
· | Recoverable Amount Disclosures for Non-Financial Assets – Amendments to IAS 36 Impairment of Assets |
Standards and amendments | Mandatory application: annual periods beginning on or after | |
Amendments to IAS 19 | Defined Benefit Plans: Employee Contributions | July 1, 2014 |
Improvements to IFRS | ||
Improvements to IFRS 2011-2013 | July 1, 2014 | |
Improvements to IFRS 2012-2014 | January 1, | |
IFRS | Regulatory Deferral Accounts | January 1, |
Amendments to IFRS 11 | Accounting for Acquisitions of Interests in Joint | January 1, |
Amendments to IAS 16 and IAS 38 | Clarification of | January 1, |
Amendments to IAS 16 and IAS 41 | Agriculture: Bearer Plants | January 1, |
Amendments to IFRS 10 and IAS | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | January 1, |
Amendments to IAS | Disclosure Initiative | January 1, |
Amendments to IFRS 10, IFRS 12 and IAS 28 | Investment Entities: Applying the Consolidation Exception | January 1, |
IFRS 15 | Revenues from Contracts with Customers | January 1, 2017 |
IFRS 9 | Financial instruments | January 1, 2018 |
Amendments to IFRS 7 | ||
Disclosures - Transition to IFRS 9 | January 1, | |
2018 |
2014 | |||||||
Millions of euros | Telefónica Spain | Telefónica UK | Telefónica Germany | Telefónica Brazil | Telefónica Hispanoamérica | Other and eliminations | Total Group |
Revenues | 12,023 | 7,062 | 5,522 | 11,231 | 13,155 | 1,384 | 50,377 |
External revenues | 11,832 | 7,021 | 5,500 | 11,200 | 13,013 | 1,811 | 50,377 |
Inter-segment revenues | 191 | 41 | 22 | 31 | 142 | (427) | − |
Other operating income and expenses | (6,352) | (5,318) | (4,789) | (7,688) | (9,087) | (1,628) | (34,862) |
OIBDA | 5,671 | 1,744 | 733 | 3,543 | 4,068 | (244) | 15,515 |
Depreciation and amortization | (1,805) | (1,121) | (1,426) | (1,762) | (2,034) | (400) | (8,548) |
Operating income | 3,866 | 623 | (693) | 1,781 | 2,034 | (644) | 6,967 |
Capital expenditures | 1,732 | 755 | 849 | 2,933 | 2,842 | 337 | 9,448 |
Investments accounted for by the equity method | 2 | 2 | − | 3 | 2 | 779 | 788 |
Fixed assets | 14,057 | 11,173 | 16,703 | 21,795 | 14,922 | 2,157 | 80,807 |
Total allocated assets | 18,520 | 14,105 | 21,186 | 28,570 | 21,800 | 18,118 | 122,299 |
Total allocated liabilities | 9,599 | 4,740 | 6,645 | 8,898 | 14,480 | 47,648 | 92,010 |
2011 | ||||||||||||||||||||
Millions of euros | Telefónica Spain | Telefónica Latin America | Telefónica Europe | Other and eliminations | Total Group | |||||||||||||||
Revenues | 17,284 | 29,237 | 15,524 | 792 | 62,837 | |||||||||||||||
External revenues | 16,941 | 29,138 | 15,212 | 1,546 | 62,837 | |||||||||||||||
Inter-segment revenues | 343 | 99 | 312 | (754 | ) | - | ||||||||||||||
Other operating income and expenses | (12,212 | ) | (18,296 | ) | (11,291 | ) | (828 | ) | (42,627 | ) | ||||||||||
OIBDA | 5,072 | 10,941 | 4,233 | (36 | ) | 20,210 | ||||||||||||||
Depreciation and amortization | (2,088 | ) | (4,783 | ) | (3,117 | ) | (158 | ) | (10,146 | ) | ||||||||||
OPERATING INCOME | 2,984 | 6,158 | 1,116 | (194 | ) | 10,064 | ||||||||||||||
CAPITAL EXPENDITURE | 2,914 | 5,299 | 1,705 | 306 | 10,224 | |||||||||||||||
INVESTMENTS IN ASSOCIATES | 1 | 3 | - | 5,061 | 5,065 | |||||||||||||||
FIXED ASSETS | 15,070 | 43,890 | 28,133 | 1,541 | 88,634 | |||||||||||||||
TOTAL ALLOCATED ASSETS | 21,428 | 62,923 | 35,247 | 10,025 | 129,626 | |||||||||||||||
TOTAL ALLOCATED LIABILITIES | 12,768 | 27,289 | 9,754 | 52,429 | 102,243 |
2010 (revised1) | |||||||||||||||||||||||||||
2013 (*) | 2013 (*) | ||||||||||||||||||||||||||
Millions of euros | Telefónica Spain | Telefónica Latin America | Telefónica Europe | Other and eliminations | Total Group | Telefónica Spain | Telefónica UK | Telefónica Germany | Telefónica Brazil | Telefónica Hispanoamérica | Other and eliminations | Total Group | |||||||||||||||
Revenues | 18,711 | 25,756 | 15,724 | 546 | 60,737 | 12,959 | 6,692 | 4,914 | 12,217 | 16,855 | 3,424 | 57,061 | |||||||||||||||
External revenues | 18,301 | 25,618 | 15,407 | 1,411 | 60,737 | 12,734 | 6,652 | 4,876 | 12,186 | 16,736 | 3,877 | 57,061 | |||||||||||||||
Inter-segment revenues | 410 | 138 | 317 | (865 | ) | - | 225 | 40 | 38 | 31 | 119 | (453) | − | ||||||||||||||
Other operating income and expenses | (10,191 | ) | (12,043 | ) | (11,644 | ) | (1,082 | ) | (34,960 | ) | (6,619) | (5,055) | (3,606) | (8,277) | (11,324) | (3,103) | (37,984) | ||||||||||
OIBDA | 8,520 | 13,713 | 4,080 | (536 | ) | 25,777 | 6,340 | 1,637 | 1,308 | 3,940 | 5,531 | 321 | 19,077 | ||||||||||||||
Depreciation and amortization | (2,009 | ) | (3,954 | ) | (3,201 | ) | (139 | ) | (9,303 | ) | (1,903) | (1,016) | (1,231) | (2,109) | (2,524) | (844) | (9,627) | ||||||||||
OPERATING INCOME | 6,511 | 9,759 | 879 | (675 | ) | 16,474 | |||||||||||||||||||||
CAPITAL EXPENDITURE | 2,021 | 5,455 | 3,152 | 216 | 10,844 | ||||||||||||||||||||||
INVESTMENTS IN ASSOCIATES | 1 | 71 | - | 5,140 | 5,212 | ||||||||||||||||||||||
FIXED ASSETS | 14,179 | 45,459 | 29,329 | 1,438 | 90,405 | ||||||||||||||||||||||
TOTAL ALLOCATED ASSETS | 23,291 | 64,963 | 36,199 | 5,322 | 129,775 | ||||||||||||||||||||||
TOTAL ALLOCATED LIABILITIES | 11,021 | 29,093 | 10,333 | 47,644 | 98,091 | ||||||||||||||||||||||
Operating income | 4,437 | 621 | 77 | 1,831 | 3,007 | (523) | 9,450 | ||||||||||||||||||||
Capital expenditures | 1,529 | 1,385 | 666 | 2,127 | 3,118 | 570 | 9,395 | ||||||||||||||||||||
Investments accounted for by the equity method | 6 | 11 | − | 2 | 1 | 2,404 | 2,424 | ||||||||||||||||||||
Fixed assets | 14,191 | 10,781 | 9,143 | 20,648 | 16,071 | 2,188 | 73,022 | ||||||||||||||||||||
Total allocated assets | 18,895 | 13,144 | 11,682 | 27,324 | 24,432 | 23,385 | 118,862 | ||||||||||||||||||||
Total allocated liabilities | 9,258 | 4,051 | 3,213 | 8,294 | 16,177 | 50,387 | 91,380 |
2009 (revised1) | |||||||||||||||||||||||||||
2012 (*) | 2012 (*) | ||||||||||||||||||||||||||
Millions of euros | Telefónica Spain | Telefónica Latin America | Telefónica Europe | Other and eliminations | Total Group | Telefónica Spain | Telefónica UK | Telefónica Germany | Telefónica Brazil | Telefónica Hispanoamérica | Other and eliminations | Total Group | |||||||||||||||
Revenues | 19,703 | 22,709 | 13,954 | 365 | 56,731 | 14,996 | 7,042 | 5,213 | 13,618 | 16,741 | 4,746 | 62,356 | |||||||||||||||
External revenues | 19,354 | 22,600 | 13,653 | 1,124 | 56,731 | 14,725 | 6,922 | 5,186 | 13,585 | 16,638 | 5,300 | 62,356 | |||||||||||||||
Inter-segment revenues | 349 | 109 | 301 | (759 | ) | - | 271 | 120 | 27 | 33 | 103 | (554) | − | ||||||||||||||
Other operating income and expenses | (9,946 | ) | (13,668 | ) | (9,955 | ) | (559 | ) | (34,128 | ) | (8,181) | (5,440) | (3,862) | (8,457) | (10,758) | (4,427) | (41,125) | ||||||||||
OIBDA | 9,757 | 9,041 | 3,999 | (194 | ) | 22,603 | 6,815 | 1,602 | 1,351 | 5,161 | 5,983 | 319 | 21,231 | ||||||||||||||
Depreciation and amortization | (2,140 | ) | (3,700 | ) | (2,988 | ) | (128 | ) | (8,956 | ) | (2,063) | (995) | (1,233) | (2,318) | (2,762) | (1,062) | (10,433) | ||||||||||
OPERATING INCOME | 7,617 | 5,341 | 1,011 | (322 | ) | 13,647 | |||||||||||||||||||||
CAPITAL EXPENDITURE | 1,863 | 3,377 | 1,801 | 216 | 7,257 | ||||||||||||||||||||||
INVESTMENTS IN ASSOCIATES | 3 | 152 | - | 4,781 | 4,936 | ||||||||||||||||||||||
FIXED ASSETS | 14,082 | 24,441 | 27,537 | 1,351 | 67,411 | ||||||||||||||||||||||
TOTAL ALLOCATED ASSETS | 26,156 | 42,336 | 32,994 | 6,655 | 108,141 | ||||||||||||||||||||||
TOTAL ALLOCATED LIABILITIES | 13,363 | 22,614 | 6,769 | 41,121 | 83,867 | ||||||||||||||||||||||
Operating income | 4,752 | 607 | 118 | 2,843 | 3,221 | (743) | 10,798 | ||||||||||||||||||||
Capital expenditures | 1,692 | 748 | 609 | 2,444 | 2,988 | 977 | 9,458 | ||||||||||||||||||||
Investments accounted for by the equity method | 4 | − | 1 | 2 | 2,461 | 2,468 | |||||||||||||||||||||
Fixed assets | 14,618 | 10,636 | 9,713 | 24,743 | 17,327 | 8,025 | 85,062 | ||||||||||||||||||||
Total allocated assets | 19,848 | 13,451 | 11,701 | 33,926 | 26,793 | 24,054 | 129,773 | ||||||||||||||||||||
Total allocated liabilities | 10,623 | 3,161 | 2,718 | 10,212 | 17,811 | 57,587 | 102,112 |
Millions of euros | ||||||||||||||||||||||||||||||||||||||||||||||||
2011 | 2010 (revised1) | 2009 (revised1) | ||||||||||||||||||||||||||||||||||||||||||||||
Country | Fixed | Mobile | Other and eliminations | Total | Fixed | Mobile | Other and eliminations | Total | Fixed | Mobile | Other and eliminations | Total | ||||||||||||||||||||||||||||||||||||
Spain | 10,631 | 7,747 | (1,094 | ) | 17,284 | 11,397 | 8,550 | (1,236 | ) | 18,711 | 12,167 | 8,965 | (1,429 | ) | 19,703 | |||||||||||||||||||||||||||||||||
Latin America | 29,237 | 25,756 | 22,709 | |||||||||||||||||||||||||||||||||||||||||||||
Brazil | 5,890 | 8,436 | (1,799 | ) | 14,326 | 6,843 | 4,959 | (683 | ) | 11,119 | 5,766 | 3,036 | (426 | ) | 8,376 | |||||||||||||||||||||||||||||||||
Argentina | 1,237 | 2,039 | (102 | ) | 3,174 | 1,187 | 1,979 | (93 | ) | 3,073 | 1,047 | 1,643 | (81 | ) | 2,609 | |||||||||||||||||||||||||||||||||
Chile | 1,037 | 1,399 | (126 | ) | 2,310 | 1,038 | 1,266 | (107 | ) | 2,197 | 893 | 1,010 | (72 | ) | 1,831 | |||||||||||||||||||||||||||||||||
Peru | 1,069 | 1,088 | (127 | ) | 2,030 | 1,097 | 1,001 | (138 | ) | 1,960 | 1,006 | 840 | (130 | ) | 1,716 | |||||||||||||||||||||||||||||||||
Colombia | 682 | 916 | (37 | ) | 1,561 | 700 | 872 | (43 | ) | 1,529 | 615 | 685 | (31 | ) | 1,269 | |||||||||||||||||||||||||||||||||
Mexico | N/A | 1,557 | N/A | 1,557 | N/A | 1,832 | - | 1,832 | N/A | 1,552 | - | 1,552 | ||||||||||||||||||||||||||||||||||||
Venezuela | N/A | 2,688 | N/A | 2,688 | N/A | 2,318 | - | 2,318 | N/A | 3,773 | - | 3,773 | ||||||||||||||||||||||||||||||||||||
Remaining operators and inter-segment eliminations | 1,591 | 1,728 | 1,583 | |||||||||||||||||||||||||||||||||||||||||||||
Europe | 15,524 | 15,724 | 13,954 | |||||||||||||||||||||||||||||||||||||||||||||
UK | 164 | 6,762 | - | 6,926 | 134 | 7,067 | - | 7,201 | 70 | 6,442 | - | 6,512 | ||||||||||||||||||||||||||||||||||||
Germany | 1,426 | 3,609 | - | 5,035 | 1,412 | 3,414 | - | 4,826 | 558 | 3,188 | - | 3,746 | ||||||||||||||||||||||||||||||||||||
Czech Republic | 913 | 1,217 | - | 2,130 | 960 | 1,237 | - | 2,197 | 1,015 | 1,248 | (3 | ) | 2,260 | |||||||||||||||||||||||||||||||||||
Ireland | 12 | 711 | N/A | 723 | 4 | 844 | - | 848 | 1 | 904 | - | 905 | ||||||||||||||||||||||||||||||||||||
Remaining operators and inter-segment eliminations | 710 | 652 | 531 | |||||||||||||||||||||||||||||||||||||||||||||
Other and inter-segment eliminations | 792 | 546 | 365 | |||||||||||||||||||||||||||||||||||||||||||||
Total Group | 62,837 | 60,737 | 56,731 |
Millions of euros | 2014 | 2013 | 2012 | |||||||||||||||||||||
Country | Fixed | Mobile | Other and elims. | Total | Fixed | Mobile | Other and elims. | Total | Fixed | Mobile | Other and elims. | Total | ||||||||||||
Spain | 8,543 | 4,556 | (1,076) | 12,023 | 8,861 | 5,121 | (1,023) | 12,959 | 9,541 | 6,464 | (1,009) | 14,996 | ||||||||||||
UK | − | 7,062 | − | 7,062 | − | 6,692 | − | 6,692 | 242 | 6,800 | − | 7,042 | ||||||||||||
Germany | 1,138 | 4,375 | 9 | 5,522 | 1,235 | 3,673 | 6 | 4,914 | 1,363 | 3,845 | 5 | 5,213 | ||||||||||||
Brazil | 3,613 | 7,618 | − | 11,231 | 4,125 | 8,092 | − | 12,217 | 5,045 | 8,573 | − | 13,618 | ||||||||||||
Hispanoamérica | 3,604 | 9,578 | (27) | 13,155 | 4,272 | 13,020 | (437) | 16,855 | 4,424 | 12,724 | (407) | 16,741 | ||||||||||||
Argentina | 1,055 | 2,008 | − | 3,063 | 1,247 | 2,434 | − | 3,681 | 1,274 | 2,423 | − | 3,697 | ||||||||||||
Chile | 842 | 1,247 | − | 2,089 | 988 | 1,495 | − | 2,483 | 1,045 | 1,524 | − | 2,569 | ||||||||||||
Peru | 1,077 | 1,427 | − | 2,504 | 1,121 | 1,333 | − | 2,454 | 1,135 | 1,265 | − | 2,400 | ||||||||||||
Colombia | 629 | 1,090 | − | 1,719 | 652 | 1,053 | − | 1,705 | 695 | 1,070 | − | 1,765 | ||||||||||||
Mexico | − | 1,649 | − | 1,649 | − | 1,580 | − | 1,580 | − | 1,596 | − | 1,596 | ||||||||||||
Venezuela and Central America | − | 1,420 | − | 1,420 | − | 4,228 | − | 4,228 | − | 4,009 | − | 4,009 | ||||||||||||
Remaining operators and segment eliminations | 1 | 737 | (27) | 711 | 264 | 897 | (437) | 724 | 275 | 837 | (407) | 705 | ||||||||||||
Other and inter-segment eliminations (1) | 1,384 | 3,424 | 4,746 | |||||||||||||||||||||
Total Group | 50,377 | 57,061 | 62,356 | |||||||||||||||||||||
Note: In some operating business of Telefónica Hispanoamérica segment, the breakdown of revenues is presented allocating intercompany eliminations to fixed and mobile businesses. Therefore, the comparative information for the years 2013 and 2012 has been revised. (1) "Other and inter-segment eliminations" included in 2013 revenues in Czech Republic amounted to 1,818 million euros (2,010 million euros in 2012) and revenues in Ireland amounted to 556 million euros (629 million euros in 2012). |
2011 | ||||||||||||||||
Millions of euros | Telefónica Latin America | Telefónica Europe | Other and eliminations | Total Group | ||||||||||||
Revenues | 28,941 | 32,074 | 1,822 | 62,837 | ||||||||||||
External revenues | 28,831 | 31,891 | 2,115 | 62,837 | ||||||||||||
Inter-segment revenues | 110 | 183 | (293 | ) | - | |||||||||||
Other operating income and expenses | (18,057 | ) | (22,803 | ) | (1,767 | ) | (42,627 | ) | ||||||||
OIBDA | 10,884 | 9,271 | 55 | 20,210 | ||||||||||||
Depreciation and amortization | (4,770 | ) | (5,076 | ) | (300 | ) | (10,146 | ) | ||||||||
OPERATING INCOME | 6,114 | 4,195 | (245 | ) | 10,064 | |||||||||||
CAPITAL EXPENDITURE | 5,263 | 4,515 | 446 | 10,224 | ||||||||||||
INVESTMENTS IN ASSOCIATES | 3 | 1 | 5,061 | 5,065 | ||||||||||||
FIXED ASSETS | 43,716 | 42,584 | 2,334 | 88,634 | ||||||||||||
TOTAL ALLOCATED ASSETS | 65,475 | 55,738 | 8,410 | 129,623 | ||||||||||||
TOTAL ALLOCATED LIABILITIES | 27,124 | 21,910 | 53,206 | 102,240 |
Million euros | |
Cash payment | 4,936 |
Fair value of the T. Deutschland shares purchased by KPN | 2,527 |
Consideration paid | 7,463 |
Intangible assets | 4,328 |
Customer relationships | 2,718 |
Frequency usage rights | 1,342 |
Other intangible assets | 268 |
Property, plant and equipment | 1,931 |
Inventories | 21 |
Trade and other receivables | 677 |
Other financial assets | 19 |
Other non-financial assets | 93 |
Cash and cash equivalents | 396 |
Deferred revenue | (220) |
Provisions | (254) |
Interest-bearing debt | (505) |
Current trade and other payables | (709) |
Fair value of net assets | 5,777 |
Goodwill (Note 7) | 1,686 |
Brasilcel, N.V. | ||||||||
Millions of euros | Carrying amount | Fair value | ||||||
Intangible assets | 3,466 | 8,401 | ||||||
Goodwill | 932 | N/A | ||||||
Property, plant and equipment | 2,586 | 2,586 | ||||||
Other non-current assets | 1,921 | 1,953 | ||||||
Other current assets | 3,101 | 3,101 | ||||||
Financial liabilities | (1,913 | ) | (1,913 | ) | ||||
Deferred tax liabilities | (828 | ) | (2,506 | ) | ||||
Other liabilities and current liabilities | (3,046 | ) | (3,203 | ) | ||||
Value of net assets | 6,219 | 8,419 | ||||||
Purchase consideration cost | 18,408 | |||||||
Goodwill (Note 7) | - | 9,989 |
Millions of euros | Gross amount | Impairment | Preliminary fair value |
Trade receivables | 797 | (164) | 633 |
Other receivables | 44 | - | 44 |
Total trade and other receivables | 841 | (164) | 677 |
HanseNet | ||||||||
Millions of euros | Carrying amount | Fair value | ||||||
Intangible assets | 277 | 309 | ||||||
Goodwill | 461 | N/A | ||||||
Property, plant and equipment | 514 | 531 | ||||||
Other assets | 191 | 235 | ||||||
Financial liabilities | (657 | ) | (665 | ) | ||||
Deferred tax liabilities | - | (101 | ) | |||||
Other liabilities and current liabilities | (303 | ) | (356 | ) | ||||
Value of net assets | 483 | (47 | ) | |||||
Purchase consideration cost | - | 235 | ||||||
Goodwill (Note 7) | - | 282 |
Millions of euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/10 | Transfers and other | Inclusion of Companies | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation | Exclusion of Companies | Balance at 12/31/11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Additions | Amortization | Disposals | differences and hyperinflation adjustments | |||||||||||||||||||||||||||||||||||||||||||||||||||
Development costs | 206 | 106 | (68 | ) | - | (34 | ) | (1 | ) | - | - | 209 | ||||||||||||||||||||||||||||||||||||||||||
Millions of euros | Balance at 12/31/2013 | Additions | Amortization | Disposals | Transfers and others | Translation differences and hyperinflation adjustments | Inclusion of companies | Exclusion of companies | Balance at 12/31/2014 | |||||||||||||||||||||||||||||||||||||||||||||
Service concession arrangements and licenses | 14,566 | 503 | (1,041 | ) | (8 | ) | 1,387 | (643 | ) | - | - | 14,764 | 12,034 | 1,294 | (1,154) | − | 31 | 58 | 1,342 | − | 13,605 | |||||||||||||||||||||||||||||||||
Software | 3,526 | 1,249 | (1,588 | ) | (2 | ) | 610 | (63 | ) | - | - | 3,732 | 3,044 | 665 | (1,432) | (5) | 632 | (143) | 144 | − | 2,905 | |||||||||||||||||||||||||||||||||
Customer base | 3,143 | - | (595 | ) | - | 1 | (73 | ) | 26 | - | 2,502 | 1,022 | − | (349) | − | (47) | 22 | 2,718 | − | 3,366 | ||||||||||||||||||||||||||||||||||
Other intangible assets | 2,172 | 26 | (184 | ) | (4 | ) | (41 | ) | (53 | ) | - | - | 1,916 | 1,487 | 40 | (256) | (4) | 12 | 30 | 121 | − | 1,430 | ||||||||||||||||||||||||||||||||
Prepayments on intangible assets | 1,413 | 953 | - | - | (1,422 | ) | (3 | ) | - | - | 941 | |||||||||||||||||||||||||||||||||||||||||||
Net intangible assets | 25,026 | 2,837 | (3,476 | ) | (14 | ) | 501 | (836 | ) | 26 | - | 24,064 | ||||||||||||||||||||||||||||||||||||||||||
Intangible assets in process | 961 | 389 | − | − | (314) | 8 | 3 | − | 1,047 | |||||||||||||||||||||||||||||||||||||||||||||
Total intangible assets | 18,548 | 2,388 | (3,191) | (9) | 314 | (25) | 4,328 | − | 22,353 |
Millions of euros | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/09 | Additions | Amortization | Disposals | Transfers and other | differences and hyperinflation adjustment | Inclusion of Companies | Exclusion of Companies | Balance at 12/31/10 | ||||||||||||||||||||||||||||||||||||||||||||||
Development costs | 162 | 104 | (55 | ) | - | (18 | ) | 2 | 11 | - | 206 | |||||||||||||||||||||||||||||||||||||||||||
Millions of euros | Balance at 12/31/2012 | Additions | Amortization | Disposals | Transfers and others | Translation differences and hyperinflation adjustments | Inclusion of companies | Exclusion of companies | Balance at 12/31/2013 | |||||||||||||||||||||||||||||||||||||||||||||
Service concession arrangements and licenses | 8,842 | 1,237 | (836 | ) | - | 61 | 623 | 4,639 | - | 14,566 | 13,545 | 1,223 | (1,116) | − | (406) | (1,212) | − | − | 12,034 | |||||||||||||||||||||||||||||||||||
Software | 2,948 | 945 | (1,381 | ) | - | 558 | 134 | 322 | - | 3,526 | 3,529 | 717 | (1,701) | (8) | 709 | (202) | − | − | 3,044 | |||||||||||||||||||||||||||||||||||
Customer base | 2,681 | - | (563 | ) | - | (141 | ) | 134 | 1,032 | - | 3,143 | 1,932 | 1 | (415) | − | (360) | (136) | − | − | 1,022 | ||||||||||||||||||||||||||||||||||
Other intangible assets | 1,139 | 41 | (309 | ) | (18 | ) | 166 | 50 | 1,103 | - | 2,172 | 1,839 | 66 | (216) | (8) | (86) | (108) | − | − | 1,487 | ||||||||||||||||||||||||||||||||||
Prepayments on intangible assets | 74 | 1,638 | - | - | (324 | ) | 5 | 20 | - | 1,413 | ||||||||||||||||||||||||||||||||||||||||||||
Net intangible assets | 15,846 | 3,965 | (3,144 | ) | (18 | ) | 302 | 948 | 7,127 | - | 25,026 | |||||||||||||||||||||||||||||||||||||||||||
Intangible assets in process | 1,233 | 302 | − | (2) | (561) | (11) | − | − | 961 | |||||||||||||||||||||||||||||||||||||||||||||
Total intangible assets | 22,078 | 2,309 | (3,448) | (18) | (704) | (1,669) | − | − | 18,548 |
Balance at December 31, 2011 | ||||||||||||||||||||
Gross cost | Accumulated amortization | Impairment losses | Net intangible assets | |||||||||||||||||
Balance at 12/31/2014 | ||||||||||||||||||||
Millions of euros | Gross cost | Accumulated amortization | Impairment losses | Net intangible assets | Gross cost | Accumulated amortization | Impairment losses | Intangible assets | ||||||||||||
Development costs | ||||||||||||||||||||
Service concession arrangements and licenses | 22,297 | (8,692) | − | 13,605 | ||||||||||||||||
Software | 15,081 | (11,326 | ) | (23 | ) | 3,732 | 14,168 | (11,260) | (3) | 2,905 | ||||||||||
Customer base | 6,181 | (3,679 | ) | - | 2,502 | 5,974 | (2,606) | (2) | 3,366 | |||||||||||
Other intangible assets | 3,358 | (1,437 | ) | (5 | ) | 1,916 | 3,647 | (2,212) | (5) | 1,430 | ||||||||||
Prepayments on intangible assets | 941 | - | - | 941 | ||||||||||||||||
Net intangible assets | 47,576 | (23,484 | ) | (28 | ) | 24,064 | ||||||||||||||
Intangible assets in process | 1,046 | − | 1 | 1,047 | ||||||||||||||||
Intangible assets | 47,132 | (24,770) | (9) | 22,353 | ||||||||||||||||
Balance at December 31, 2010 | ||||||||||||||||||||
Gross cost | Accumulated amortization | Impairment losses | Net | |||||||||||||||||
intangible | ||||||||||||||||||||
Balance at 12/31/2013 | Balance at 12/31/2013 | |||||||||||||||||||
Millions of euros | Gross cost | Accumulated amortization | Impairment losses | assets | Gross cost | Accumulated amortization | Impairment losses | Intangible assets | ||||||||||||
Development costs | 206 | |||||||||||||||||||
Service concession arrangements and licenses | 14,566 | 19,763 | (7,729) | − | 12,034 | |||||||||||||||
Software | 13,724 | (10,172 | ) | (26 | ) | 3,526 | 14,320 | (11,259) | (17) | 3,044 | ||||||||||
Customer base | 6,481 | (3,338 | ) | - | 3,143 | 4,257 | (3,235) | − | 1,022 | |||||||||||
Other intangible assets | 3,445 | (1,269 | ) | (4 | ) | 2,172 | 3,433 | (1,938) | (8) | 1,487 | ||||||||||
Prepayments on intangible assets | 1,413 | - | - | 1,413 | ||||||||||||||||
Net intangible assets | 46,730 | (21,674 | ) | (30 | ) | 25,026 | ||||||||||||||
Intangible assets in process | 962 | − | (1) | 961 | ||||||||||||||||
Intangible assets | 42,735 | (24,161) | (26) | 18,548 | ||||||||||||||||
Millions of euros | ||||||||||||||||||||||||
2011 | Balance at 12/31/10 | Acquisitions | Disposals | Transfers | Translation differences and hyperinflation adjustments | Balance at 12/31/11 | ||||||||||||||||||
Telefónica Spain | 3,280 | 52 | - | - | - | 3,332 | ||||||||||||||||||
Telefónica Latin America | 15,672 | - | - | (2 | ) | (626 | ) | 15,044 | ||||||||||||||||
Telefónica Europe | 10,421 | - | (3 | ) | 2 | 110 | 10,530 | |||||||||||||||||
Other | 209 | - | - | - | (8 | ) | 201 | |||||||||||||||||
Total | 29,582 | 52 | (3 | ) | - | (524 | ) | 29,107 |
2014 | |||||
Millions of euros | Balance at 12/31/13 | Acquisitions | Transfers | Translation differences and hyperinflation adjustments | Balance at 12/31/14 |
Telefónica Spain | 3,332 | − | − | − | 3,332 |
Telefónica Brazil | 8,392 | − | − | 15 | 8,407 |
Telefónica Germany | 2,779 | 1,686 | (4) | − | 4,461 |
Telefónica United Kingdom | 4,948 | − | − | 348 | 5,296 |
Telefonica Hispanoamérica | 3,748 | − | − | (383) | 3,365 |
Others | 235 | 1 | − | 14 | 250 |
Total | 23,434 | 1,687 | (4) | (6) | 25,111 |
2013 | |||||
Millions of euros | Balance at 12/31/12 | Acquisitions | Transfers | Translation differences and hyperinflation adjustments | Balance at 12/31/13 |
Telefónica Spain | 3,332 | − | − | − | 3,332 |
Telefónica Brazil | 10,056 | − | − | (1,664) | 8,392 |
Telefónica Germany | 2,779 | − | − | − | 2,779 |
Telefónica United Kingdom | 5,055 | − | − | (107) | 4,948 |
Telefónica Hispanoamérica | 4,210 | − | − | (462) | 3,748 |
Others | 2,531 | 2 | (2,089) | (209) | 235 |
Total | 27,963 | 2 | (2,089) | (2,442) | 23,434 |
Millions of euros | ||||||||||||||||||||||||
2010 | Balance at 12/31/09 | Acquisitions | Disposals | Transfers | Translation differences and hyperinflation adjustments | Balance at 12/31/10 | ||||||||||||||||||
Telefónica Spain | 3,238 | 42 | - | - | - | 3,280 | ||||||||||||||||||
Telefónica Latin America | 6,320 | 9,201 | - | (350 | ) | 501 | 15,672 | |||||||||||||||||
Telefónica Europe | 9,810 | 397 | (37 | ) | - | 251 | 10,421 | |||||||||||||||||
Other | 198 | - | - | - | 11 | 209 | ||||||||||||||||||
Total | 19,566 | 9,640 | (37 | ) | (350 | ) | 763 | 29,582 |
12/31/2014 | 12/31/2013 | |
Telefónica Spain | 3,332 | 3,332 |
Telefónica Brazil | 8,407 | 8,392 |
Telefónica Germany | 4,461 | 2,779 |
Telefónica United Kingdom | 5,296 | 4,948 |
Telefónica Hispanoamérica | 3,365 | 3,748 |
Chile | 978 | 996 |
Peru | 788 | 738 |
Mexico | 558 | 554 |
Argentina | 349 | 403 |
Others Telefónica Hispanoamérica | 692 | 1,057 |
Others | 250 | 235 |
TOTAL | 25,111 | 23,434 |
Discount rate in local currency | 2014 | 2013 |
Spain | 6.1% | 6.3% |
Brazil | 10.9% | 11.6% |
United Kingdom | 6.2% | 6.1% |
Germany | 5.5% | 5.3% |
Perpetuity growth rate in local currency | 2014 | 2013 |
Spain | 0.8% | 0.8% |
Brazil | 4.8% | 5.0% |
United Kingdom | 1.0% | 1.0% |
Germany | 1.2% | 1.1% |
Changes in key assumptions, In percentage points (p.p.) | Germany Spain United Kingdom | Brazil |
Financial variables | ||
Discount rate | +/- 0.5 | +/- 1 |
Perpetuity growth rates | +/- 0.25 | +/- 0.5 |
Operating variables | ||
OIBDA Margin | +/- 2 | +/- 2 |
Ratio of CAPEX/Revenues | +/- 1 | +/- 1 |
Millions of euros | |||||||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/10 | Translation | Inclusion of Companies | Exclusion of Companies | Balance at 12/31/11 | |||||||||||||||||||||||||||||||||||||||||
Additions | Depreciation | Disposals | Transfers and other | differences and hyperinflation adjustments | |||||||||||||||||||||||||||||||||||||||||
Millions of euros | Balance at 12/31/13 | Additions | Depreciation | Disposals | Transfers and others | Translation differences and hyperinflation adjustments | Inclusion of companies | Exclusion of companies | Balance at 12/31/14 | ||||||||||||||||||||||||||||||||||||
Land and buildings | 6,152 | 252 | (569 | ) | (125 | ) | 381 | (98 | ) | - | - | 5,993 | 5,234 | 70 | (468) | (43) | 360 | (131) | 43 | − | 5,065 | ||||||||||||||||||||||||
Plant and machinery | 24,206 | 2,015 | (5,398 | ) | (53 | ) | 3,274 | (335 | ) | 3 | (4 | ) | 23,708 | 21,246 | 1,290 | (4,349) | (22) | 4,756 | (814) | 1,712 | − | 23,819 | |||||||||||||||||||||||
Furniture, tools and other items | 1,947 | 348 | (703 | ) | (3 | ) | 234 | (22 | ) | 12 | (3 | ) | 1,810 | 1,328 | 178 | (540) | (25) | 382 | (20) | 8 | − | 1,311 | |||||||||||||||||||||||
Total PP&E in service | 32,305 | 2,615 | (6,670 | ) | (181 | ) | 3,889 | (455 | ) | 15 | (7 | ) | 31,511 | ||||||||||||||||||||||||||||||||
PP&E in progress | 3,259 | 4,574 | - | (4 | ) | (4,122 | ) | 7 | - | - | 3,714 | 3,232 | 5,522 | − | (9) | (5,616) | (149) | 168 | − | 3,148 | |||||||||||||||||||||||||
Advance payments on PP&E | 8 | 9 | - | - | (5 | ) | - | - | - | 12 | |||||||||||||||||||||||||||||||||||
Installation materials | 225 | 189 | - | (2 | ) | (176 | ) | (10 | ) | - | - | 226 | |||||||||||||||||||||||||||||||||
Net PP&E | 35,797 | 7,387 | (6,670 | ) | (187 | ) | (414 | ) | (458 | ) | 15 | (7 | ) | 35,463 | |||||||||||||||||||||||||||||||
Total PP&E | 31,040 | 7,060 | (5,357) | (99) | (118) | (1,114) | 1,931 | − | 33,343 | ||||||||||||||||||||||||||||||||||||
Millions of euros | |||||||||||||||||||||||||||||||||||||||||||||
Balance at 12/31/09 | Translation | Inclusion of Companies | Exclusion of Companies | Balance at 12/31/10 | |||||||||||||||||||||||||||||||||||||||||
Additions | Depreciation | Disposals | Transfers and other | differences and hyperinflation adjustments | |||||||||||||||||||||||||||||||||||||||||
Millions of euros | Balance at 12/31/12 | Additions | Depreciation | Disposals | Transfers and others | Translation differences and hyperinflation adjustments | Inclusion of companies | Exclusion of companies | Balance at 12/31/13 | ||||||||||||||||||||||||||||||||||||
Land and buildings | 6,092 | 61 | (538 | ) | (40 | ) | 180 | 332 | 87 | (22 | ) | 6,152 | 6,049 | 51 | (598) | (50) | 119 | (337) | − | 5,234 | |||||||||||||||||||||||||
Plant and machinery | 21,391 | 1,447 | (4,869 | ) | (57 | ) | 3,750 | 1,198 | 1,390 | (44 | ) | 24,206 | 23,213 | 1,565 | (4,860) | (67) | 3,059 | (1,663) | − | (1) | 21,246 | ||||||||||||||||||||||||
Furniture, tools and other items | 1,660 | 448 | (752 | ) | - | 339 | 77 | 178 | (3 | ) | 1,947 | 2,007 | 174 | (721) | (27) | 13 | (114) | − | (4) | 1,328 | |||||||||||||||||||||||||
Total PP&E in service | 29,143 | 1,956 | (6,159 | ) | (97 | ) | 4,269 | 1,607 | 1,655 | (69 | ) | 32,305 | |||||||||||||||||||||||||||||||||
PP&E in progress | 2,619 | 4,781 | - | (3 | ) | (4,370 | ) | 139 | 100 | (7 | ) | 3,259 | 3,752 | 5,296 | − | (8) | (5,426) | (382) | − | 3,232 | |||||||||||||||||||||||||
Advance payments on PP&E | 10 | 3 | - | - | (5 | ) | - | - | - | 8 | |||||||||||||||||||||||||||||||||||
Installation materials | 227 | 139 | - | (16 | ) | (143 | ) | 18 | - | - | 225 | ||||||||||||||||||||||||||||||||||
Net PP&E | 31,999 | 6,879 | (6,159 | ) | (116 | ) | (249 | ) | 1,764 | 1,755 | (76 | ) | 35,797 | ||||||||||||||||||||||||||||||||
Total PP&E | 35,021 | 7,086 | (6,179) | (152) | (2,235) | (2,496) | − | (5) | 31,040 | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | ||||||||||||||||||||
Gross cost | Accumulated depreciation | Impairment losses | Net PP&E | |||||||||||||||||
Balance at December 31, 2014 | Balance at December 31, 2014 | |||||||||||||||||||
Millions of euros | Gross cost | Accumulated depreciation | Impairment losses | PP&E | ||||||||||||||||
Land and buildings | 12,522 | (6,526 | ) | (3 | ) | 5,993 | 11,493 | (6,427) | (1) | 5,065 | ||||||||||
Plant and machinery | 100,692 | (76,961 | ) | (23 | ) | 23,708 | 92,061 | (68,183) | (59) | 23,819 | ||||||||||
Furniture, tools and other items | 7,463 | (5,571 | ) | (82 | ) | 1,810 | 6,487 | (5,165) | (11) | 1,311 | ||||||||||
Total PP&E in service | 120,677 | (89,058 | ) | (108 | ) | 31,511 | ||||||||||||||
PP&E in progress | 3,714 | - | - | 3,714 | 3,160 | − | (12) | 3,148 | ||||||||||||
Advance payments on PP&E | 12 | - | - | 12 | ||||||||||||||||
Installation materials | 248 | - | (22 | ) | 226 | |||||||||||||||
Net PP&E | 124,651 | (89,058 | ) | (130 | ) | 35,463 | ||||||||||||||
Total PP&E | 113,201 | (79,775) | (83) | 33,343 | ||||||||||||||||
Balance at December 31, 2010 | ||||||||||||||||
Gross cost | Accumulated depreciation | Impairment losses | Net PP&E | |||||||||||||
Land and buildings | 12,372 | (6,216 | ) | (4 | ) | 6,152 | ||||||||||
Plant and machinery | 100,496 | (76,266 | ) | (24 | ) | 24,206 | ||||||||||
Furniture, tools and other items | 7,406 | (5,367 | ) | (92 | ) | 1,947 | ||||||||||
Total PP&E in service | 120,274 | (87,849 | ) | (120 | ) | 32,305 | ||||||||||
PP&E in progress | 3,259 | - | - | 3,259 | ||||||||||||
Advance payments on PP&E | 8 | - | - | 8 | ||||||||||||
Installation materials | 256 | - | (31 | ) | 225 | |||||||||||
Net PP&E | 123,797 | (87,849 | ) | (151 | ) | 35,797 |
Balance at December 31, 2013 | ||||
Millions of euros | Gross cost | Accumulated depreciation | Impairment losses | PP&E |
Land and buildings | 11,633 | (6,398) | (1) | 5,234 |
Plant and machinery | 90,723 | (69,420) | (57) | 21,246 |
Furniture, tools and other items | 6,487 | (5,148) | (11) | 1,328 |
PP&E in progress | 3,255 | − | (23) | 3,232 |
Total PP&E | 112,098 | (80,966) | (92) | 31,040 |
Millions of euros | ||||||||
Description | 12/31/11 | 12/31/10 | ||||||
Investments in associates | 5,065 | 5,212 | ||||||
Long-term loans to associates (Note 13) | 3 | 604 | ||||||
Short-term loans to associates | 682 | 43 | ||||||
Receivables from associates for current operations (Note 11) | 69 | 84 | ||||||
Loans granted by associates (Note 14) | 347 | 147 | ||||||
Payables to associates for current operations (Note 14) | 93 | 46 | ||||||
Revenue from operations with associates | 578 | 518 | ||||||
Work performed by associates and other operating expenses | 617 | 906 | ||||||
Share of (loss) profit of associates | (635 | ) | 76 |
Millions of euros | ||
12/31/14 | 12/31/13 | |
Investments accounted for by the equity method | 788 | 2,424 |
Loans to associates and joint ventures | 16 | 1,281 |
Receivables from associates and joint ventures for current operations (Note 11) | 43 | 85 |
Financial debt, associates and joint ventures | 21 | 20 |
Payables to associates and joint ventures (Note 14) | 724 | 578 |
Millions of euros | |||
2014 | 2013 | 2012 | |
Share of (loss) of investments accounted for by the equity method | (510) | (304) | (1,275) |
Revenue from operations with associates and joint ventures | 472 | 524 | 535 |
Expenses from operations with associates and joint ventures | 503 | 552 | 634 |
Financial income with associates and joint ventures | 49 | 38 | 32 |
Financial expenses with associates and joint ventures | 16 | 10 | 4 |
December 31, 2011 | Millions of euros | |||||||||||||||||||||||||||
COMPANY | % holding | Total assets | Total liabilities | Operating income | Profit (loss) for the year | Carrying amount | Market value | |||||||||||||||||||||
Telco, S.p.A. (Italy) (*) | 46.18 | % | 5,410 | 3,300 | - | (1,126 | ) | 1,453 | N/A | |||||||||||||||||||
DTS Distribuidora de Televisión Digital, S.A. (Spain) | 22.00 | % | 1,423 | 458 | 908 | 50 | 473 | N/A | ||||||||||||||||||||
China Unicom (Hong Kong) Limited | 9.57 | % | 53,332 | 27,961 | 22,466 | 539 | 3,031 | 3,665 | ||||||||||||||||||||
Other | 108 | |||||||||||||||||||||||||||
TOTAL | 5,065 |
December 31, 2010 | Millions of euros | |||||||||||||||||||||||||||
COMPANY | % holding | Total assets | Total liabilities | Operating income | Profit (loss) for the year | Carrying amount | Market value | |||||||||||||||||||||
Telco, S.p.A. (Italy) (*) | 46.18 | % | 6,554 | 3,356 | - | 63 | 2,055 | N/A | ||||||||||||||||||||
DTS Distribuidora de Televisión Digital, S.A. (Spain) | 22.00 | % | 1,497 | 497 | 1,085 | 169 | 488 | N/A | ||||||||||||||||||||
China Unicom (Hong Kong) Limited | 8.37 | % | 47,494 | 24,238 | 18,604 | 388 | 2,499 | 2,112 | ||||||||||||||||||||
Other | 170 | |||||||||||||||||||||||||||
TOTAL | 5,212 |
Investments | accounted for by the equity method | Millions of euros | ||
Balance at 12/31/ | 2,468 | |||
363 | ||||
Disposals | ||||
Translation differences and other comprehensive income | (121) | |||
Income (loss) | (304) | |||
Dividends | ||||
Transfers and other | ||||
Balance at 12/31/ | 2,424 | |||
382 | ||||
Disposals | ||||
Translation differences and other comprehensive income | (20) | |||
Income (loss) | ||||
Dividends | ||||
Transfers and other | ||||
Balance at 12/31/ | 788 | |||
Millions of euros | 2010 | 2009 | ||||||
Current assets | - | 1,170 | ||||||
Non-current assets | - | 5,617 | ||||||
Current liabilities | - | 1,170 | ||||||
Non-current liabilities | - | 1,505 | ||||||
Operating revenue | 2,583 | (*) | 2,743 | |||||
Operating expenses | 1,896 | (*) | 2,046 |
December 31, 2014 | ||||||
Millions of euros | ||||||
COMPANY | % holding | Total assets | Total liabilities | Operating revenue | Profit (loss) for the year | Carrying amount |
DTS Distribuidora de Televisión Digital, S.A. (Spain) | 44% | 1,265 | 622 | 1,168 | (210) | 703 |
Other | 85 | |||||
TOTAL | 788 | |||||
December 31, 2013 | ||||||
Millions of euros | ||||||
COMPANY | % holding | Total assets | Total liabilities | Operating revenue | Profit (loss) for the year | Carrying amount |
Telco, S.p.A. (Italy) (Note 21.b) | 66% | 3,001 | 2,416 | − | (474) | 390 |
DTS Distribuidora de Televisión Digital, S.A. (Spain) | 22% | 1,381 | 528 | 1,166 | (74) | 434 |
China Unicom (Hong Kong) Limited | 5.01% | 61,320 | 35,389 | 34,775 | 1,227 | 1,539 |
Other | 61 | |||||
TOTAL | 2,424 | |||||
Millions of euros | ||
2014 | BBVA | La Caixa |
Finance costs | 26 | 2 |
Receipt of services | 8 | 59 |
Other expenses | 3 | − |
Total costs | 37 | 61 |
Finance income | 14 | 19 |
Dividends received(1) | 14 | N/A |
Services rendered | 61 | 95 |
Sale of goods | 5 | 2 |
Other income | 3 | − |
Total revenue | 97 | 116 |
Finance arrangements: loans and capital contributions (borrower) | 417 | 31 |
Guarantees | 529 | 75 |
Commitments | 32 | 67 |
Finance arrangements: loans and capital contributions (lender) | 1,107 | 1,173 |
Dividends(2) | 194 | 98 |
Other operations (factoring operations) | 112 | − |
Millions of euros | ||
2013 | BBVA | La Caixa |
Finance costs | 45 | 2 |
Receipt of services | 19 | 57 |
Other expenses | 1 | − |
Total costs | 65 | 59 |
Finance income | 35 | 8 |
Dividends received | 14 | N/A |
Services rendered | 68 | 78 |
Sale of goods | 5 | 3 |
Other income | 2 | − |
Total revenue | 124 | 89 |
Finance arrangements: loans and capital contributions (borrower) | 399 | 214 |
Guarantees | 452 | 134 |
Commitments | 32 | 69 |
Commitments/guarantees canceled | 69 | − |
Finance arrangements: loans and capital contributions (lender) | 1,626 | 1,671 |
Financial lease contracts (lessee) | 5 | − |
Amortization or cancellation of credits and lease contracts (lessee) | 13 | − |
Dividends | 108 | 89 |
Other operations (factoring operations) | 210 | − |
Balance at | Balance at | |||||||||
Millions of euros | 12/31/11 | 12/31/10 | Balance at 12/31/2014 | Balance at 12/31/2013 | ||||||
Trade receivables | 12,282 | 13,002 | ||||||||
Receivables from associates (Note 9) | 69 | 84 | ||||||||
Trade receivables billed | 9,172 | 8,184 | ||||||||
Trade receivables unbilled | 2,529 | 2,258 | ||||||||
Impairment of trade receivables | (2,757) | (2,598) | ||||||||
Receivables from associates and joint ventures (Note 9) | 43 | 85 | ||||||||
Other receivables | 918 | 1,182 | 540 | 571 | ||||||
Allowance uncollectibles | (3,135 | ) | (3,098 | ) | ||||||
Short-term prepayments | 1,197 | 1,256 | 1,079 | 1,140 | ||||||
Total | 11,331 | 12,426 | 10,606 | 9,640 |
Millions of euros | 12/31/11 | 12/31/10 | ||||||
Trade receivables billed | 9,168 | 9,420 | ||||||
Trade receivables unbilled | 3,114 | 3,582 | ||||||
Total | 12,282 | 13,002 |
Millions of euros | |||||
Impairment | 3,196 | ||||
Allowances | 674 | ||||
Amounts applied | (809) | ||||
Translation differences and other | (463) | ||||
Impairment provision at December 31, 2013 | |||||
Allowances | |||||
Amounts applied | (801) | ||||
Inclusion of companies | |||||
Translation differences and other | − | ||||
Impairment | 2,757 | ||||
Millions of euros | ||||
Goodwill reserve | 2 | |||
Voluntary reserves | 812 | |||
Interim dividend | 1,790 | |||
Total | 2,604 | |||
Liquidity statement | Millions of euros | |||
Income from January 1 through March 31, | 3,177 | |||
Mandatory appropriation to reserves | - | |||
Distributable income | ||||
3,177 | ||||
Proposed interim dividend (maximum amount) | 1,820 | |||
Cash position | ||||
Funds available for | distribution: | |||
Cash and cash equivalents | 4,135 | |||
Unused credit facilities | 4,397 | |||
Proposed interim dividend (maximum amount) | ||||
Difference | 6,712 | |||
· | On December 4, 2014, Telefónica Europe, B.V. issued undated deeply subordinated reset rate guaranteed securities in an aggregate principal amount of 850 million euros and subject to a call option exercisable by Telefónica Europe, B.V. starting on the fifth anniversary of the issuance date. The Securities will accrue a fixed coupon at a rate of 4.20% annually as from the issuance date up to December 4, 2019 (not inclusive). From December 4, 2019 (inclusive) onwards, the Securities will accrue a fixed coupon equal to the applicable 5 year swap rate plus a margin of: (i) 3.806% per year as from December 4, 2019 up to December 4, 2024 (not inclusive); (ii) 4.056% per year as from December 4, 2024 up to December 4, 2039 (not inclusive); and (iii) 4.806% per year as from December 4, 2039. |
· | On September 18, 2013, Telefónica Europe, B.V. issued undated deeply subordinated reset rate guaranteed securities in an aggregate principal amount of 1,750 million euros. This issue entails two tranches: one of them subject to a call option exercisable by Telefónica Europe, B.V. starting on the fifth anniversary of the issuance date in an aggregate principal amount of 1,125 million euros (the “Five-Year Non-Call Securities”), and the other |
· | On November 26, 2013, Telefónica Europe, B.V. issued undated deeply subordinated reset rate guaranteed securities, with the subordinated guarantee of Telefónica, S.A., for an aggregate principal amount of 600 million pounds sterling (equivalent to 716 million euros at the closing date) and subject to a call option exercisable by Telefónica Europe, B.V. starting on the seventh anniversary of the issuance date. The securities will accrue a coupon at a rate of 6.75% annually as from the issuance date (inclusive) up to November 26, 2020. From November 26, 2020 (inclusive), the securities will accrue a fixed coupon equal to the applicable five years swap rate resettable every five years plus a margin of: (i) 4.458% per year as from November 26, 2020 up to November 26, 2025 (not inclusive); (ii) 4.708% per year as from November 26, 2025 up to November 26, 2040 (not inclusive); and (iii) 5.458% per year as from November 26, 2040 (inclusive). |
f) Translation differences |
Millions of euros | 2011 | 2010 | 2009 | |||||||||
Telefónica Latin America | (550 | ) | 1,208 | 1,052 | ||||||||
Telefónica Europe | (2,071 | ) | (2,363 | ) | (2,524 | ) | ||||||
Other adjustments and intra-group eliminations | 458 | 212 | 99 | |||||||||
Total Telefónica Group | (2,163 | ) | (943 | ) | (1,373 | ) |
Millions of euros | 2014 | 2013 | 2012 |
Brazilian real | (5,552) | (5,556) | (2,395) |
Venezuelan bolivar | (2,923) | 27 | 645 |
Pound sterling | (1,901) | (2,455) | (2,251) |
Other currencies | (1,756) | (1,291) | 372 |
Total Group | (12,132) | (9,275) | (3,629) |
Euros per share | |||||
Number of shares | Acquisition price | Trading price | Market value* | % | |
Treasury shares at 12/31/14 | 128,227,971 | 11.68 | 11.92 | 1,528 | 2.75332% |
Treasury shares at 12/31/13 | 29,411,832 | 11.69 | 11.84 | 348 | 0.64627% |
Treasury shares at 12/31/12 | 47,847,810 | 10.57 | 10.19 | 488 | 1.05136% |
(*) Millions of euros |
Euros per share | ||||||||||||||||||||
Number of shares | Acquisition price | Trading price | Market value Millions of euros | % | ||||||||||||||||
Treasury shares at 12/31/11 | 84,209,364 | 15.68 | 13.39 | 1,127 | 1.84508 | % | ||||||||||||||
Treasury shares at 12/31/10 | 55,204,942 | 17.01 | 16.97 | 937 | 1.20957 | % | ||||||||||||||
Treasury shares at 12/31/09 | 6,329,530 | 16.81 | 19.52 | 124 | 0.13868 | % |
Number of shares | ||||
Treasury shares at 12/31/11 | 84,209,364 | |||
Acquisitions | 126,489,372 | |||
Disposals | ||||
Employee share option plan | (2,071,606) | |||
Capital reduction | (84,209,363) | |||
Treasury shares at 12/31/12 | 47,847,810 | |||
Acquisitions | 113,154,549 | |||
Disposals | (131,590,527) | |||
Treasury shares at 12/31/13 | 29,411,832 | |||
Acquisitions | 100,723,415 | |||
Disposals | (129,177) | |||
Employee share option plan | (1,778,099) | |||
Treasury shares at 12/31/14 | 128,227,971 | |||
· | An agreement was reached with qualified and professional investors on March 26, 2013 whereby the Company disposed of all the treasury shares it held (90,067,896 shares) at a price of 10.80 euros per share. |
· | On September 24, 2013 Telefónica, S.A. acquired from the remaining shareholders of Telco, S.p.A. 23.8% of the non-convertible bonds issued by Telco, S.p.A. (Note 13.a). The payment of this transaction consisted of the transmission of 39,021,411 treasury shares of the Company (see Note 13.a). |
Millions of euros | Balance at 12/31/10 | Capital contributions and inclusion of companies | Profit/(loss) for the year | Change in translation differences | Acquisitions of non-controlling interests and exclusion of companies | Dividends paid | Other movements | Balance at 12/31/11 | ||||||||||||||||||||||||
Telefónica Czech Republic, a.s. | 1,033 | - | 95 | (25 | ) | - | (161 | ) | (2 | ) | 940 | |||||||||||||||||||||
Telefónica Chile, S.A. | 23 | - | 2 | (1 | ) | - | (3 | ) | - | 21 | ||||||||||||||||||||||
Telefónica Brasil, S.A. | 6,136 | - | 864 | (345 | ) | (539 | ) | (710 | ) | (661 | ) | 4,745 | ||||||||||||||||||||
Fonditel Entidad Gestora de Fondos de Pensiones, S.A. | 22 | - | 2 | - | - | (1 | ) | - | 23 | |||||||||||||||||||||||
Iberbanda, S.A. | 2 | - | (4 | ) | - | 2 | - | - | - | |||||||||||||||||||||||
Colombia Telecomunicaciones, S.A., ESP | - | - | (175 | ) | - | - | - | 175 | ||||||||||||||||||||||||
Other | 16 | - | - | 3 | (2 | ) | (1 | ) | 2 | 18 | ||||||||||||||||||||||
Total | 7,232 | - | 784 | (368 | ) | (539 | ) | (876 | ) | (486 | ) | 5,747 |
Millions of euros | Balance at 12/31/09 | Capital contributions and inclusion of companies | Profit/(loss) for the year | Change in translation differences | Acquisitions of non-controlling interests and exclusion of companies | Dividends paid | Other movements | Balance at 12/31/10 | ||||||||||||||||||||||||
Telefónica Czech Republic, a.s. | 1,044 | - | 88 | 57 | - | (156 | ) | - | 1,033 | |||||||||||||||||||||||
Telefónica Chile, S.A. | 22 | - | 3 | 3 | - | (1 | ) | (4 | ) | 23 | ||||||||||||||||||||||
Telesp Participaçoes, S.A. | 542 | - | 131 | 69 | - | (105 | ) | (7 | ) | 630 | ||||||||||||||||||||||
Brasilcel (Holdings) | 885 | 4,304 | 224 | 258 | - | (171 | ) | 6 | 5,506 | |||||||||||||||||||||||
Fonditel Entidad Gestora de Fondos de Pensiones, S.A. | 23 | - | 2 | - | - | (3 | ) | - | 22 | |||||||||||||||||||||||
Iberbanda, S.A. | 6 | - | (4 | ) | - | - | - | - | 2 | |||||||||||||||||||||||
Colombia Telecomunicaciones, S.A., ESP | - | - | (540 | ) | - | - | - | 540 | - | |||||||||||||||||||||||
Other | 18 | 6 | 1 | 3 | (3 | ) | (4 | ) | (5 | ) | 16 | |||||||||||||||||||||
Total | 2,540 | 4,310 | (95 | ) | 390 | (3 | ) | (440 | ) | 530 | 7,232 |
Millions of euros | Balance at 12/31/08 | Capital contributions and inclusion of companies | Profit/(loss) for the year | Change in translation differences | Acquisitions of non-controlling interests and exclusion of companies | Dividends paid | Other movements | Balance at 12/31/09 | ||||||||||||||||||||||||
Telefónica Czech Republic, a.s. | 1,095 | - | 114 | 21 | - | (186 | ) | - | 1,044 | |||||||||||||||||||||||
Telefónica Chile, S.A. | 23 | 1 | 1 | 6 | (8 | ) | (1 | ) | - | 22 | ||||||||||||||||||||||
Telesp Participaçoes, S.A. | 385 | - | 101 | 118 | - | (64 | ) | 2 | 542 | |||||||||||||||||||||||
Brasilcel (Holdings) | 774 | - | 46 | 214 | (108 | ) | (41 | ) | - | 885 | ||||||||||||||||||||||
Fonditel Entidad Gestora de Fondos de Pensiones, S.A. | 20 | - | 3 | - | - | - | - | 23 | ||||||||||||||||||||||||
Iberbanda, S.A. | 9 | - | (3 | ) | - | - | - | - | 6 | |||||||||||||||||||||||
Colombia Telecomunicaciones, S.A., ESP | - | - | (104 | ) | - | - | - | 104 | - | |||||||||||||||||||||||
Other | 25 | - | 3 | (2 | ) | (7 | ) | (3 | ) | 2 | 18 | |||||||||||||||||||||
Total | 2,331 | 1 | 161 | 357 | (123 | ) | (295 | ) | 108 | 2,540 |
Millions of euros | Balance at 12/31/13 | Sales of non-controlling interests and inclusion of companies | Acquisitions of non-controlling interests and exclusion of companies | Dividends distribution | Profit/(loss) for the year | Change in translation differences | Other movements | Balance at 12/31/14 | ||||||||
Telefónica Czech Republic, a.s. | 666 | − | (666) | − | − | − | − | − | ||||||||
Telefónica Brasil, S.A. | 3,491 | − | − | (269) | 423 | (5) | 16 | 3,656 | ||||||||
Telefónica Deutschland Holding, A.G. | 1,962 | 3,615 | − | (122) | (277) | − | (12) | 5,166 | ||||||||
Colombia Telecomunicaciones, S.A., ESP | (165) | − | − | − | 91 | 7 | 17 | (50) | ||||||||
Telefónica Centroamericana Inversiones, S.L. | 283 | 6 | − | (14) | 9 | 41 | 1 | 326 | ||||||||
Other | 60 | 10 | − | (1) | 5 | 4 | (2) | 76 | ||||||||
Total | 6,297 | 3,631 | (666) | (406) | 251 | 47 | 20 | 9,174 |
Millions of euros | Balance at 12/31/12 | Sales of non-controlling interests and inclusion of companies | Acquisitions of non-controlling interests and exclusion of companies | Dividends distribution | Profit/(loss) for the year | Change in translation differences | Other movements | Balance at 12/31/13 | ||||||||
Telefónica Czech Republic, a.s. | 813 | − | (46) | (100) | 63 | (64) | − | 666 | ||||||||
Telefónica Brasil, S.A. | 4,373 | − | − | (522) | 335 | (694) | (1) | 3,491 | ||||||||
Telefónica Deutschland Holding, A.G. | 2,084 | − | − | (117) | (1) | (1) | (3) | 1,962 | ||||||||
Colombia Telecomunicaciones, S.A., ESP | (139) | − | − | − | (37) | 21 | (10) | (165) | ||||||||
Telefónica Centroamericana Inversiones, S.L. | − | 283 | − | − | 11 | (12) | 1 | 283 | ||||||||
Other | 69 | 1 | − | − | 5 | (13) | (2) | 60 | ||||||||
Total | 7,200 | 284 | (46) | (739) | 376 | (763) | (15) | 6,297 |
Millions of euros | Balance at 12/31/11 | Sales of non-controlling interests and inclusion of companies | Acquisitions of non-controlling interests and exclusion of companies | Dividends distribution | Profit/(loss) for the year | Change in translation differences | Other movements | Balance at 12/31/12 | ||||||||
Telefónica Czech Republic, a.s. | 940 | − | (113) | (107) | 66 | 27 | − | 813 | ||||||||
Telefónica Brasil, S.A. | 4,745 | − | (12) | (331) | 454 | (478) | (5) | 4,373 | ||||||||
Telefónica Deutschland Holding, A.G. | − | 2,043 | − | − | 41 | − | − | 2,084 | ||||||||
Colombia Telecomunicaciones, S.A., ESP | − | − | (116) | − | (93) | (138) | 208 | (139) | ||||||||
Other | 62 | − | (2) | (4) | 7 | 5 | 1 | 69 | ||||||||
Total | 5,747 | 2,043 | (243) | (442) | 475 | (584) | 204 | 7,200 |
Fair value through profit or loss | Measurement hierarchy | |||||||||||||||||||||
Millions of euros | Held for trading | Fair value option | Available-for-sale | Hedges | Level 1 (Quoted prices) | Level 2 (Other directly observable market inputs) | Level 3 (Inputs not based on observable market data) | Held-to-maturity investments | Rest of financial assets at amortized cost | Total carrying amount | Total fair value | |||||||||||
Non-current financial assets | 2,453 | 245 | 1,875 | 3,046 | 1,492 | 6,114 | 13 | 137 | 3,217 | 10,973 | 10,981 | |||||||||||
Investments | − | − | 1,278 | − | 1,170 | 108 | − | − | − | 1,278 | 1,278 | |||||||||||
Long-term credits | − | 245 | 597 | − | 84 | 745 | 13 | 47 | 2,248 | 3,137 | 2,643 | |||||||||||
Deposits and guarantees | − | − | − | − | − | − | − | 90 | 1,471 | 1,561 | 1,561 | |||||||||||
Derivative instruments | 2,453 | − | − | 3,046 | 238 | 5,261 | − | − | − | 5,499 | 5,499 | |||||||||||
Impairment losses | − | − | − | − | − | − | − | − | (502) | (502) | − | |||||||||||
Current financial assets | 500 | 97 | 63 | 571 | 423 | 808 | − | 9 | 8,221 | 9,461 | 9,454 | |||||||||||
Financial investments | 500 | 97 | 63 | 571 | 423 | 808 | − | 9 | 1,692 | 2,932 | 2,925 | |||||||||||
Cash and cash equivalents | − | − | − | − | − | − | − | − | 6,529 | 6,529 | 6,529 | |||||||||||
Total financial assets | 2,953 | 342 | 1,938 | 3,617 | 1,915 | 6,922 | 13 | 146 | 11,438 | 20,434 | 20,435 |
December 31, 2011 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value through profit or loss | Measurement hierarchy | |||||||||||||||||||||||||||||||||||||||||||
Millions of euros | Held for trading | Fair value option | Available-for-sale | Hedges | Level 1 (Quoted prices) | Level 2 (Other directly observable market inputs) | Level 3 (Inputs not based on observable market data) | Amortized cost | Held-to-maturity investments | Total carrying amount | Total fair value | |||||||||||||||||||||||||||||||||
Non-current financial assets | 1,574 | 273 | 1,310 | 2,720 | 1,521 | 4,355 | 1 | 2,798 | 3 | 8,678 | 8,673 | |||||||||||||||||||||||||||||||||
Investments | - | - | 680 | - | 588 | 91 | 1 | - | - | 680 | 680 | |||||||||||||||||||||||||||||||||
Long-term credits | - | 273 | 630 | - | 894 | 9 | - | 1,322 | 3 | 2,228 | 2,223 | |||||||||||||||||||||||||||||||||
Deposits and guarantees | - | - | - | - | - | - | - | 1,875 | - | 1,875 | 1,476 | |||||||||||||||||||||||||||||||||
Derivative instruments | 1,574 | - | - | 2,720 | 39 | 4,255 | - | - | - | 4,294 | 4,294 | |||||||||||||||||||||||||||||||||
Impairment losses | - | - | - | - | - | - | - | (399 | ) | - | (399 | ) | - | |||||||||||||||||||||||||||||||
Current financial assets | 165 | 171 | 518 | 225 | 668 | 367 | 44 | 5,024 | 657 | 6,760 | 6,760 | |||||||||||||||||||||||||||||||||
Financial investments | 165 | 171 | 518 | 225 | 668 | 367 | 44 | 889 | 657 | 2,625 | 2,625 | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | - | - | - | - | - | 4,135 | - | 4,135 | 4,135 | |||||||||||||||||||||||||||||||||
Total financial assets | 1,739 | 444 | 1,828 | 2,945 | 2,189 | 4,722 | 45 | 7,822 | 660 | 15,438 | 15,433 |
December 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value through profit or loss | Measurement hierarchy | Fair value through profit or loss | Measurement hierarchy | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Millions of euros | Held for trading | Fair value option | Available-for-sale | Hedges | Level 1 (Quoted prices) | Level 2 (Other directly observable market inputs) | Level 3 (Inputs not based on observable market data) | Amortized cost | Held-to-maturity investments | Total carrying amount | Total fair value | Held for trading | Fair value option | Available-for-sale | Hedges | Level 1 (Quoted prices) | Level 2 (Other directly observable market inputs) | Level 3 (Inputs not based on observable market data) | Held-to-maturity investments | Rest of financial assets at amortized cost | Total carrying amount | Total fair value | ||||||||||||||||||||||||||||||||||||||||||||
Non-current financial assets | 948 | 211 | 1,194 | 1,630 | 1,321 | 2,660 | 2 | 3,423 | - | 7,406 | 7,325 | 1,462 | 356 | 1,101 | 1,205 | 746 | 3,378 | − | 36 | 3,615 | 7,775 | 7,775 | ||||||||||||||||||||||||||||||||||||||||||||
Investments | - | - | 597 | - | 482 | 113 | 2 | - | - | 597 | 597 | − | − | 550 | − | 433 | 117 | − | − | − | 550 | 550 | ||||||||||||||||||||||||||||||||||||||||||||
Long-term credits | 12 | 211 | 597 | - | 816 | 4 | - | 2,118 | - | 2,938 | 2,838 | − | 356 | 551 | − | 171 | 736 | − | 7 | 2,562 | 3,476 | 3,127 | ||||||||||||||||||||||||||||||||||||||||||||
Deposits and guarantees | - | - | - | - | - | - | - | 1,680 | - | 1,680 | 1,324 | − | − | − | − | − | − | − | 29 | 1,403 | 1,432 | 1,431 | ||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | 936 | - | - | 1,630 | 23 | 2,543 | - | - | - | 2,566 | 2,566 | 1,462 | − | − | 1,205 | 142 | 2,525 | − | − | − | 2,667 | 2,667 | ||||||||||||||||||||||||||||||||||||||||||||
Impairment losses | - | - | - | - | - | - | - | (375 | ) | - | (375 | ) | - | − | − | − | − | − | − | − | − | (350) | (350) | − | ||||||||||||||||||||||||||||||||||||||||||
Current financial assets | 272 | 160 | 309 | 201 | 554 | 363 | 25 | 4,604 | 248 | 5,794 | 5,794 | 548 | 146 | 54 | 125 | 327 | 546 | − | 727 | 10,494 | 12,094 | 12,094 | ||||||||||||||||||||||||||||||||||||||||||||
Financial investments | 272 | 160 | �� | 309 | 201 | 554 | 363 | 25 | 384 | 248 | 1,574 | 1,574 | 548 | 146 | 54 | 125 | 327 | 546 | − | 727 | 517 | 2,117 | 2,117 | |||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | - | - | - | - | - | 4,220 | - | 4,220 | 4,220 | − | − | − | − | − | − | − | − | 9,977 | 9,977 | 9,977 | ||||||||||||||||||||||||||||||||||||||||||||
Total financial assets | 1,220 | 371 | 1,503 | 1,831 | 1,875 | 3,023 | 27 | 8,027 | 248 | 13,200 | 13,119 | 2,010 | 502 | 1,155 | 1,330 | 1,073 | 3,924 | − | 763 | 14,109 | 19,869 | 19,869 |
a) Non-current financial assets |
Millions of euros | Millions of euros | Investments | Long-term credits | Deposits and guarantees | Derivative financial assets | Impairment provision | Total | |||||||||||||||||||||||
Investments | Long-term credits and prepayments | Deposits and guarantees | Derivative financial assets | Impairment losses | Total | |||||||||||||||||||||||||
Balance at 12/31/09 | 654 | 1,940 | 1,496 | 2,411 | (513 | ) | 5,988 | |||||||||||||||||||||||
Acquisitions | 51 | 1,465 | 339 | 62 | (79 | ) | 1,838 | |||||||||||||||||||||||
Disposals | (1 | ) | (748 | ) | (112 | ) | (389 | ) | 243 | (1,007 | ) | |||||||||||||||||||
Inclusion of companies | 8 | 205 | 203 | 34 | (7 | ) | 443 | |||||||||||||||||||||||
Translation differences | 13 | 99 | (186 | ) | 16 | 39 | (19 | ) | ||||||||||||||||||||||
Fair value adjustments | (128 | ) | 60 | 34 | 444 | - | 410 | |||||||||||||||||||||||
Transfers | - | (83 | ) | (94 | ) | (12 | ) | (58 | ) | (247 | ) | |||||||||||||||||||
Balance at 12/31/10 | 597 | 2,938 | 1,680 | 2,566 | (375 | ) | 7,406 | |||||||||||||||||||||||
Balance at 12/31/12 | 586 | 2,940 | 1,986 | 4,213 | (386) | 9,339 | ||||||||||||||||||||||||
Acquisitions | - | 936 | 425 | 224 | (11 | ) | 1,574 | 10 | 1,269 | 158 | 188 | (4) | 1,621 | |||||||||||||||||
Disposals | (12 | ) | (873 | ) | (207 | ) | - | 1 | (1,091 | ) | (106) | (462) | (61) | − | 1 | (628) | ||||||||||||||
Translation differences | (1 | ) | (45 | ) | (53 | ) | 34 | 1 | (64 | ) | (12) | (111) | (285) | 73 | 29 | (306) | ||||||||||||||
Fair value adjustments | (160 | ) | 18 | 2 | 1,721 | - | 1,581 | 80 | (85) | 38 | (1,459) | − | (1,426) | |||||||||||||||||
Transfers | 256 | (746 | ) | 28 | (251 | ) | (15 | ) | (728 | ) | (8) | (75) | (404) | (348) | 10 | (825) | ||||||||||||||
Balance at 12/31/11 | 680 | 2,228 | 1,875 | 4,294 | (399 | ) | 8,678 | |||||||||||||||||||||||
Balance at 12/31/13 | 550 | 3,476 | 1,432 | 2,667 | (350) | 7,775 | ||||||||||||||||||||||||
Acquisitions | 58 | 916 | 161 | 423 | (5) | 1,553 | ||||||||||||||||||||||||
Disposals | (21) | (451) | (148) | (16) | 6 | (630) | ||||||||||||||||||||||||
Translation differences | (5) | 18 | (25) | 124 | 5 | 117 | ||||||||||||||||||||||||
Fair value adjustments | (113) | 35 | 103 | 2,538 | − | 2,563 | ||||||||||||||||||||||||
Transfers and others | 809 | (857) | 38 | (237) | (158) | (405) | ||||||||||||||||||||||||
Balance at 12/31/14 | 1,278 | 3,137 | 1,561 | 5,499 | (502) | 10,973 | ||||||||||||||||||||||||
Millions of euros | 12/31/2014 | 12/31/2013 |
Long-term loans to associates | - | 1,225 |
Long-term trade receivables | 825 | 444 |
Long-term prepayments | 338 | 154 |
Long-term receivables for indirect taxes | 112 | 121 |
Other long-term credits | 1,862 | 1,532 |
Total | 3,137 | 3,476 |
On July 9, 2014, each of the Telco shareholders, among which Telefónica is one of them, executed with Telco a shareholders loan agreement with a maturity date no later than April 30, 2015. The aggregate amount of shareholders loans made available pursuant to such loans is up to 2,550 million euros (1,683 million euros corresponding to Telefónica, S.A. according to its stake in Telco), which will enable Telco to repay in full all amounts due by Telco under its banking debt and the subordinated bond. As of December 31, 2014 there was no outstanding amount under these loans. |
· | Short-term investments in financial instruments recognized at fair value to cover commitments undertaken by the Group’s insurance companies, amounting to |
Derivative financial assets with a short-term maturity or not used to hedge non-current items in the consolidated statement of financial position, |
Short-term deposits and guarantees |
Current investments of cash surpluses which, given their characteristics, have not been classified as “Cash and cash equivalents.” |
2.- Financial liabilities |
Millions of euros | Balance at 12/31/11 | Balance at 12/31/10 | ||||||
Issues | 42,239 | 39,692 | ||||||
Interest-bearing debt | 24,072 | 21,408 | ||||||
Total | 66,311 | 61,100 | ||||||
Total non-current | 55,659 | 51,356 | ||||||
Total current | 10,652 | 9,744 |
Millions of euros | ||||||||
Current | Non-current | |||||||
Maturity | 2015 | 2016 | 2017 | 2018 | 2019 | Subsequent years | Non-current total | Total |
Debentures and bonds | 4,601 | 6,722 | 6,392 | 4,834 | 3,465 | 18,214 | 39,627 | 44,228 |
Promissory notes & commercial paper | 502 | − | − | − | − | − | − | 502 |
Other marketable debt securities | − | − | − | − | − | − | − | − |
Total Issues | 5,103 | 6,722 | 6,392 | 4,834 | 3,465 | 18,214 | 39,627 | 44,730 |
Loans and other payables | 3,590 | 1,533 | 3,205 | 761 | 849 | 1,482 | 7,830 | 11,420 |
Other financial liabilities (Note 16) | 401 | 152 | 347 | 477 | 357 | 1,898 | 3,231 | 3,632 |
TOTAL | 9,094 | 8,407 | 9,944 | 6,072 | 4,671 | 21,594 | 50,688 | 59,782 |
Maturity | ||||||||||||||||||||||||||||
(Millions of euros) | 2012 | 2013 | 2014 | 2015 | 2016 | Subsequent years | Total | |||||||||||||||||||||
Debentures and bonds | 2,824 | 5,203 | 4,933 | 3,860 | 6,590 | 15,012 | 38,422 | |||||||||||||||||||||
Promissory notes & commercial paper | 1,832 | - | - | - | - | - | 1,832 | |||||||||||||||||||||
Other marketable debt securities | - | - | - | - | - | 1,985 | 1,985 | |||||||||||||||||||||
Loans and other payables | 5,683 | 2,314 | 2,746 | 4,384 | 2,774 | 3,722 | 21,623 | |||||||||||||||||||||
Derivative financial liabilities | 313 | 92 | 126 | 289 | 191 | 1,438 | 2,449 | |||||||||||||||||||||
TOTAL | 10,652 | 7,609 | 7,805 | 8,533 | 9,555 | 22,157 | 66,311 |
December 31, 2014 | |||||||||
Fair value through profit or loss | Measurement hierarchy | ||||||||
Millions of euros | Held for trading | Fair value option | Hedges | Level 1 (Quoted prices) | Level 2 (Other directly observable market inputs) | Level 3 (Inputs not based on observable market data) | Liabilities at amortized cost | Total carrying amount | Total fair value |
Issues | − | − | − | − | − | − | 44,730 | 44,730 | 49,434 |
Loans, other payables and other financial liabilities | 2,562 | − | 1,070 | 105 | 3,527 | − | 11,420 | 15,052 | 15,212 |
Total financial liabilities | 2,562 | − | 1,070 | 105 | 3,527 | − | 56,150 | 59,782 | 64,646 |
December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Fair value through profit or loss | Measurement hierarchy | |||||||||||||||||||||||||||||||||||
Millions of euros | Held for trading | Fair value option | Hedges | Level 1 (Quoted prices) | Level 2 (Other directly observable market inputs) | Level 3 (Inputs not based on observable market data) | Liabilities at amortized cost | Total carrying amount | Total fair value | |||||||||||||||||||||||||||
Issues | - | - | - | - | - | - | 42,239 | 42,239 | 42,203 | |||||||||||||||||||||||||||
Interest-bearing debt | 1,246 | - | 1,203 | 78 | 2,371 | - | 21,623 | 24,072 | 21,961 | |||||||||||||||||||||||||||
Total financial liabilities | 1,246 | - | 1,203 | 78 | 2,371 | - | 63,862 | 66,311 | 64,164 |
December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
Fair value through profit or loss | Measurement hierarchy | Fair value through profit or loss | Measurement hierarchy | ||||||||||||||||||||||||||||||||||||||||||
Millions of euros | Held for trading | Fair value option | Hedges | Level 1 (Quoted prices) | Level 2 (Other directly observable market inputs) | Level 3 (Inputs not based on observable market data) | Liabilities at amortized cost | Total carrying amount | Total fair value | Held for trading | Fair value option | Hedges | Level 1 (Quoted prices) | Level 2 (Other directly observable market inputs) | Level 3 (Inputs not based on observable market data) | Liabilities at amortized cost | Total carrying amount | Total fair value | |||||||||||||||||||||||||||
Issues | - | - | - | - | - | - | 39,692 | 39,692 | 39,127 | − | 43,418 | 46,120 | |||||||||||||||||||||||||||||||||
Interest-bearing debt | 695 | - | 806 | 210 | 1,291 | - | 19,907 | 21,408 | 19,777 | ||||||||||||||||||||||||||||||||||||
Loans, other payables and other financial liabilities | 1,315 | − | 1,631 | 111 | 2,835 | − | 14,335 | 17,281 | 17,401 | ||||||||||||||||||||||||||||||||||||
Total financial liabilities | 695 | - | 806 | 210 | 1,291 | - | 59,599 | 61,100 | 58,904 | 1,315 | − | 1,631 | 111 | 2,835 | − | 57,753 | 60,699 | 63,521 | |||||||||||||||||||||||||||
Millions of euros | Domestic currency issues | Foreign currency issues | Short-term promissory notes and commercial paper | Other non Current Marketable debt securities | Total | Debenture and bond issues | Short-term promissory notes and commercial paper | Other non-Current Marketable debt securities | Total | |||||||||||||||
Balance at 12/31/09 | 17,575 | 15,387 | 873 | 2,008 | 35,843 | |||||||||||||||||||
Balance at 12/31/12 | 44,142 | 1,128 | 59 | 45,329 | ||||||||||||||||||||
New issues | 2,392 | 3,879 | 1,102 | - | 7,373 | 5,634 | 195 | − | 5,829 | |||||||||||||||
Redemptions, conversions and exchanges | (1,269 | ) | (3,634 | ) | (311 | ) | - | (5,214 | ) | (5,667) | (45) | − | (5,712) | |||||||||||
Changes in consolidation scope | - | 317 | - | - | 317 | |||||||||||||||||||
Revaluation and other movements | 96 | 1,250 | 64 | (37 | ) | 1,373 | (2,029) | 1 | − | (2,028) | ||||||||||||||
Balance at 12/31/10 | 18,794 | 17,199 | 1,728 | 1,971 | 39,692 | |||||||||||||||||||
Balance at 12/31/13 | 42,080 | 1,279 | 59 | 43,418 | ||||||||||||||||||||
New issues | 2,300 | 2,283 | 166 | - | 4,749 | 4,453 | 27 | − | 4,480 | |||||||||||||||
Redemptions, conversions and exchanges | (2,250 | ) | (985 | ) | (66 | ) | - | (3,301 | ) | (5,057) | (805) | (59) | (5,921) | |||||||||||
Changes in consolidation scope | - | - | - | - | - | |||||||||||||||||||
Revaluation and other movements | 641 | 439 | 5 | 14 | 1,099 | 2,751 | 2 | − | 2,753 | |||||||||||||||
Balance at 12/31/11 | 19,485 | 18,936 | 1,833 | 1,985 | 42,239 | |||||||||||||||||||
Balance at 12/31/14 | 44,228 | 502 | − | 44,730 | ||||||||||||||||||||
· |
· |
Balance at 12/31/11 | Balance at 12/31/10 | |||||||||||||||||||||||
Current | Non-current | Current | Non-current | |||||||||||||||||||||
Total | Total | |||||||||||||||||||||||
Loans and other payables | 5,683 | 15,940 | 21,623 | 3,664 | 16,243 | 19,907 | ||||||||||||||||||
Derivative financial liabilities (Note 16) | 313 | 2,136 | 2,449 | 323 | 1,178 | 1,501 | ||||||||||||||||||
Total | 5,996 | 18,076 | 24,072 | 3,987 | 17,421 | 21,408 |
· | On |
· | On February |
· | On |
· | On June |
· |
· |
· | During 2014, Telefónica, |
· | During 2014, Telefónica, S.A. drew down an aggregate principal amount of |
Outstanding balance (in millions) | ||||||||||||||||
Currency | Euros | |||||||||||||||
Currency | 12/31/11 | 12/31/10 | 12/31/11 | 12/31/10 | ||||||||||||
Euros | 13,099 | 11,778 | 13,099 | 11,778 | ||||||||||||
US dollars | 2,520 | 2,580 | 1,947 | 1,931 | ||||||||||||
Brazilian reais | 4,014 | 3,633 | 1,545 | 1,632 | ||||||||||||
Argentine pesos | 764 | 1,080 | 137 | 203 | ||||||||||||
Colombian pesos | 9,035,173 | 8,176,727 | 3,594 | 3,197 | ||||||||||||
Yen | 14,916 | 16,882 | 149 | 155 | ||||||||||||
Chilean peso | 106,284 | 54,886 | 158 | 88 | ||||||||||||
New soles | 853 | 948 | 245 | 253 | ||||||||||||
Pounds sterling | 552 | 557 | 661 | 648 | ||||||||||||
Czech crown | 49 | 131 | 2 | 5 | ||||||||||||
Other currencies | 86 | 17 | ||||||||||||||
Total Group | N/A | N/A | 21,623 | 19,907 |
Outstanding balance (in millions) | ||||
Currency | Euros | |||
Currency | 12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 |
Euro | 5,077 | 7,918 | 5,077 | 7,918 |
US dollar | 3,683 | 3,622 | 3,033 | 2,626 |
Brazilian Real | 3,010 | 3,667 | 933 | 1,135 |
Colombian Peso | 5,592,388 | 5,377,545 | 1,925 | 2,024 |
Pounds Sterling | 140 | 189 | 180 | 227 |
Other currencies | 272 | 405 | ||
Total Group | 11,420 | 14,335 |
Millions of euros | 12/31/2014 | 12/31/2013 | ||||||||||||||||||
12/31/11 | 12/31/10 | Non-current | Current | Non-current | Current | |||||||||||||||
Millions of euros | Non-current | Current | Non-current | Current | ||||||||||||||||
Trade payables | - | 8,888 | - | 9,038 | − | 8,770 | − | 8,144 | ||||||||||||
Advances received on orders | - | 77 | - | 83 | ||||||||||||||||
Other payables | 1,620 | 6,684 | 1,761 | 8,162 | 1,500 | 6,008 | 1,324 | 5,146 | ||||||||||||
Deferred income | 472 | 1,766 | 543 | 1,775 | ||||||||||||||||
Payable to associates (Note 9) | - | 440 | - | 193 | ||||||||||||||||
Deferred revenue | 877 | 1,441 | 377 | 1,353 | ||||||||||||||||
Payable to associates and joint ventures (Note 9) | − | 724 | − | 578 | ||||||||||||||||
Total | 2,092 | 17,855 | 2,304 | 19,251 | 2,377 | 16,943 | 1,701 | 15,221 | ||||||||||||
Millions of euros | Balance at 12/31/11 | Balance at 12/31/10 | Balance at 12/31/2014 | Balance at 12/31/2013 | ||||||
Dividends payable by Group companies | 241 | 199 | ||||||||
Dividends pending payment to non-controlling interests | 231 | 228 | ||||||||
Payables to suppliers of property, plant and equipment | 4,393 | 4,455 | 3,890 | 3,248 | ||||||
Short term debt for spectrum acquisition | 272 | 211 | ||||||||
Accrued employee benefits | 728 | 780 | 821 | 745 | ||||||
Deferred payment for Brasilcel, N.V. (Note 5) | - | 1,977 | ||||||||
Advances received on orders | 216 | 126 | ||||||||
Other non-financial non-trade payables | 1,322 | 751 | 578 | 588 | ||||||
Total | 6,684 | 8,162 | 6,008 | 5,146 | ||||||
2011 | 2014 | 2013 | ||||||||||
Millions of euros | Amount | % | Amount | % | Amount | % | ||||||
Payments within allowable period | 8,361 | 95.2 | 5,408 | 95.0 | 5,897 | 94.0 | ||||||
Other | 425 | 4.8 | 277 | 5.0 | 375 | 6.0 | ||||||
Total payments to commercial suppliers | 8,786 | 100.0 | 5,685 | 100.0 | 6,272 | 100.0 | ||||||
Weighted average days past due | 38 | 28 | 35 | |||||||||
Deferrals at year-end that exceed the limit (*) | 27 | 11 | 17 |
(*) |
12/31/11 | 12/31/10 | |||||||||||||||||||||||
Millions of euros | Current | Non-current | Total | Current | Non-current | Total | ||||||||||||||||||
Employee benefits: | 807 | 4,999 | 5,806 | 916 | 2,974 | 3,890 | ||||||||||||||||||
- Termination plans | 790 | 3,908 | 4,698 | 898 | 1,858 | 2,756 | ||||||||||||||||||
- Post-employment defined benefit plans | - | 799 | 799 | - | 829 | 829 | ||||||||||||||||||
- Other benefits | 17 | 292 | 309 | 18 | 287 | 305 | ||||||||||||||||||
Other provisions | 696 | 2,173 | 2,869 | 759 | 1,891 | 2,650 | ||||||||||||||||||
Total | 1,503 | 7,172 | 8,675 | 1,675 | 4,865 | 6,540 |
12/31/2014 | 12/31/2013 | |||||
Millions of euros | Current | Non-current | Total | Current | Non-current | Total |
Employee benefits | 1,021 | 3,426 | 4,447 | 763 | 3,722 | 4,485 |
Termination plans | 956 | 2,430 | 3,386 | 703 | 2,762 | 3,465 |
Post-employment defined benefit plans | − | 872 | 872 | − | 799 | 799 |
Other benefits | 65 | 124 | 189 | 60 | 161 | 221 |
Other provisions | 574 | 3,254 | 3,828 | 508 | 2,578 | 3,086 |
Total | 1,595 | 6,680 | 8,275 | 1,271 | 6,300 | 7,571 |
Millions of euros | |
Provisions for post-employment plans at 12/31/12 | |
Additions | 68 |
Retirements/amount applied | (688) |
Transfers | (4) |
Translation differences and accretion | (62) |
Provisions for post-employment plans at 12/31/13 | 3,465 |
Additions | 525 |
Retirements/amount applied | (733) |
Transfers | (14) |
Inclusion of companies | 12 |
Translation differences and accretion | 131 |
Provisions for post-employment plans at 12/31/14 | 3,386 |
Post-employment defined benefit plans | ||||
12/31/11 | Spain | Europe | Latin America | ||||||||||||||||||||||||||||||||
12/31/2014 | 12/31/2014 | ||||||||||||||||||||||||||||||||||
Millions of euros | ITP | Survival | UK | Germany | Brazil | Other | Total | Spain | United Kingdom | Germany | Brazil | Hispano américa | Others | Total | |||||||||||||||||||||
Obligation | 412 | 242 | 976 | 55 | 298 | 18 | 2,001 | 593 | 1,529 | 201 | 239 | 37 | 11 | 2,610 | |||||||||||||||||||||
Assets | - | - | (971 | ) | (79 | ) | (235 | ) | (7 | ) | (1,292 | ) | − | (1,567) | (112) | (145) | − | (11) | (1,835) | ||||||||||||||||
Net provision before asset ceiling | 412 | 242 | 5 | (24 | ) | 63 | 11 | 709 | 593 | (38) | 89 | 94 | 37 | − | 775 | ||||||||||||||||||||
Asset ceiling | - | - | - | 17 | 51 | - | 68 | − | 42 | − | 3 | 45 | |||||||||||||||||||||||
Net provision | 412 | 242 | 5 | 2 | 127 | 11 | 799 | 593 | 9 | 89 | 141 | 37 | 3 | 872 | |||||||||||||||||||||
Net assets | - | - | - | 9 | 13 | - | 22 | − | 47 | − | 5 | − | 52 | ||||||||||||||||||||||
12/31/10 | Spain | Europe | Latin America | ||||||||||||||||||||||||||||||||
12/31/2013 | 12/31/2013 | ||||||||||||||||||||||||||||||||||
Millions of euros | ITP | Survival | UK | Germany | Brazil | Other | Total | Spain | United Kingdom | Germany | Brazil | Hispano américa | Others | Total | |||||||||||||||||||||
Obligation | 424 | 208 | 918 | 57 | 272 | 13 | 1,892 | 567 | 1,251 | 93 | 211 | 93 | 9 | 2,224 | |||||||||||||||||||||
Assets | - | - | (838 | ) | (63 | ) | (250 | ) | (5 | ) | (1,156 | ) | − | (1,236) | (91) | (146) | − | (6) | (1,479) | ||||||||||||||||
Net provision before asset ceiling | 424 | 208 | 80 | (6 | ) | 22 | 8 | 736 | 567 | 15 | 2 | 65 | 93 | 3 | 745 | ||||||||||||||||||||
Asset ceiling | - | - | - | 9 | 71 | - | 80 | − | 3 | 45 | − | 48 | |||||||||||||||||||||||
Net provision | 424 | 208 | 80 | 3 | 106 | 8 | 829 | 567 | 15 | 5 | 116 | 93 | 3 | 799 | |||||||||||||||||||||
Net assets | - | - | - | - | 13 | - | 13 | − | 6 | − | 6 | ||||||||||||||||||||||||
Spain | Europe | Latin America | |||||||||||||||||||||||||||||||||
Millions of euros | ITP | Survival | UK | Germany | Brazil | Other | Total | Spain | United Kingdom | Germany | Brazil | Hispano américa | Other | Total | |||||||||||||||||||||
Present value of obligation at 12/31/09 | 451 | 191 | 922 | 37 | 159 | 11 | 1,771 | ||||||||||||||||||||||||||||
Present value of obligation at 12/31/12 | 654 | 1,139 | 81 | 298 | 76 | 9 | 2,257 | ||||||||||||||||||||||||||||
Translation differences | - | - | 31 | - | 26 | - | 57 | − | (21) | − | (43) | (39) | − | (103) | |||||||||||||||||||||
Current service cost | - | 8 | 29 | 2 | 4 | - | 43 | 2 | 4 | 3 | 44 | − | 56 | ||||||||||||||||||||||
Past service cost | - | - | (35 | ) | - | - | - | (35 | ) | − | (4) | − | (4) | ||||||||||||||||||||||
Interest cost | 15 | 7 | 55 | 2 | 23 | 1 | 103 | 12 | 49 | 3 | 24 | 6 | − | 94 | |||||||||||||||||||||
Actuarial losses and gains | 8 | 9 | - | 16 | 2 | 1 | 36 | (49) | 106 | 7 | (58) | 22 | − | 28 | |||||||||||||||||||||
Benefits paid | (50 | ) | (7 | ) | (14 | ) | - | (11 | ) | - | (82 | ) | (52) | (22) | (1) | (13) | (16) | − | (104) | ||||||||||||||||
Plan curtailments | - | - | 1 | - | - | - | 1 | ||||||||||||||||||||||||||||
Inclusion of companies | - | - | - | - | 69 | - | 69 | ||||||||||||||||||||||||||||
Exclusion of companies | - | - | (71 | ) | - | - | - | (71 | ) | ||||||||||||||||||||||||||
Present value of obligation at 12/31/10 | 424 | 208 | 918 | 57 | 272 | 13 | 1,892 | ||||||||||||||||||||||||||||
Present value of obligation at 12/31/13 | 567 | 1,251 | 93 | 211 | 93 | 9 | 2,224 | ||||||||||||||||||||||||||||
Translation differences | - | - | 29 | - | (26 | ) | 1 | 4 | − | 95 | − | (1) | (68) | 1 | 27 | ||||||||||||||||||||
Current service cost | - | 9 | 25 | 3 | 4 | 1 | 42 | 3 | − | 4 | 1 | 11 | − | 19 | |||||||||||||||||||||
Past service cost | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
Interest cost | 13 | 7 | 51 | 2 | 26 | 2 | 101 | 15 | 58 | 4 | 23 | 2 | − | 102 | |||||||||||||||||||||
Actuarial losses and gains | 23 | 26 | (27 | ) | (7 | ) | 38 | 2 | 55 | 59 | 147 | 47 | 19 | 4 | 1 | 277 | |||||||||||||||||||
Benefits paid | (48 | ) | (8 | ) | (20 | ) | - | (16 | ) | - | (92 | ) | (51) | (22) | (2) | (14) | (5) | − | (94) | ||||||||||||||||
Plan curtailments | - | - | - | - | - | (1 | ) | (1 | ) | ||||||||||||||||||||||||||
Present value of obligation at 12/31/11 | 412 | 242 | 976 | 55 | 298 | 18 | 2,001 | ||||||||||||||||||||||||||||
Inclusion of companies | − | 55 | − | 55 | |||||||||||||||||||||||||||||||
Present value of obligation at 12/31/14 | 593 | 1,529 | 201 | 239 | 37 | 11 | 2,610 | ||||||||||||||||||||||||||||
Millions of euros | United Kingdom | Germany | Brazil | Other | Total |
Fair value of plan assets at 12/31/12 | 1,191 | 76 | 225 | 6 | 1,498 |
Translation differences | (27) | − | (32) | − | (59) |
Expected return on plan assets | 54 | 2 | 18 | − | 74 |
Actuarial losses and gains | (19) | − | (57) | − | (76) |
Company contributions | 59 | 14 | 3 | − | 76 |
Benefits paid | (22) | (1) | (11) | − | (34) |
Fair value of plan assets at 12/31/13 | 1,236 | 91 | 146 | 6 | 1,479 |
Translation differences | 95 | − | − | 2 | 97 |
Expected return on plan assets | 59 | 4 | 17 | 1 | 81 |
Actuarial losses and gains | 118 | (1) | (6) | 1 | 112 |
Company contributions | 81 | 9 | − | 1 | 91 |
Benefits paid | (22) | (2) | (12) | − | (36) |
Inclusion of companies | − | 11 | − | − | 11 |
Fair value of plan assets at 12/31/14 | 1,567 | 112 | 145 | 11 | 1,835 |
Europe | Latin America | |||||||||||||||||||
Millions of euros | UK | Germany | Brazil | Other | Total | |||||||||||||||
Fair value of plan assets at 12/31/09 | 744 | 58 | 116 | - | 918 | |||||||||||||||
Translation differences | 23 | - | 25 | 1 | 49 | |||||||||||||||
Expected return on plan assets | 54 | 2 | 23 | 1 | 80 | |||||||||||||||
Actuarial losses and gains | (4 | ) | (5 | ) | 4 | - | (5 | ) | ||||||||||||
Company contributions | 76 | 8 | 4 | 3 | 91 | |||||||||||||||
Employee contributions | 1 | - | - | - | 1 | |||||||||||||||
Benefits paid | (14 | ) | - | (11 | ) | - | (25 | ) | ||||||||||||
Inclusion of companies | - | - | 89 | - | 89 | |||||||||||||||
Exclusion of companies | (42 | ) | - | - | - | (42 | ) | |||||||||||||
Fair value of plan assets at 12/31/10 | 838 | 63 | 250 | 5 | 1,156 | |||||||||||||||
Translation differences | 29 | - | (21 | ) | 1 | 9 | ||||||||||||||
Expected return on plan assets | 48 | 3 | 23 | - | 74 | |||||||||||||||
Actuarial losses and gains | (13 | ) | (3 | ) | (5 | ) | - | (21 | ) | |||||||||||
Company contributions | 89 | 16 | 3 | 1 | 109 | |||||||||||||||
Employee contributions | - | - | - | - | - | |||||||||||||||
Benefits paid | (20 | ) | - | (15 | ) | - | (35 | ) | ||||||||||||
Fair value of plan assets at 12/31/11 | 971 | 79 | 235 | 7 | 1,292 |
Millions of euros | 2011 | 2010 | 2009 | |||||||||
Spain | (48 | ) | (17 | ) | 1 | |||||||
Europe | 14 | (6 | ) | (184 | ) | |||||||
Latin America | (51 | ) | (71 | ) | (6 | ) | ||||||
Total | (85 | ) | (94 | ) | (189 | ) |
a) | ITP (Spain) |
b) |
Survival | ITP | |||
12/31/11 | 12/31/10 | 12/31/11 | 12/31/10 | |
Discount rate | 0.787%-2.521% | 0.682%-3.417% | 0.787%-2.521% | 0.682%-3.417% |
Expected rate of salary increase | 2.50% | 2.50% | - | - |
Mortality tables | PERM/F-2000C Combined with OM77 | PERM/F-2000C Combined with OM77 | 92% PERM 2000C/100% PERF 2000 C | 92% PERM 2000C/100% PERF 2000 C |
Employees | 2011 | 2010 |
UK | 4,590 | 4,617 |
Germany | 5,979 | 5,839 |
12/31/11 | 12/31/10 | |||
UK | Germany | UK | Germany | |
Nominal rate of salary increase | 4.0% | 3.5% | 4.5% | 1% |
Nominal rate of pension payment increase | 2.9% | 1.0%-4.0% | 3.5% | 2.0%-4.0% |
Discount rate | 4.9% | 5.3% | 5.6% | 6.1% |
Expected inflation | 3.0% | 2% | 3.5% | 2.0%-4.0% |
Expected return on plan assets | ||||
- Shares | 7.0% | N/A | 7.5% | N/A |
- UK government bonds | - | N/A | - | N/A |
- Other bonds | 4.9% | N/A | 5.2% | N/A |
- Rest of assets | 3.0% | 4%-4.25% | 4.2% | 4.10%-4.25% |
Mortality tables | Pna00mc0.5 underpin | Prf. Klaus Heubeck (RT 2005 G) | Pna00mcfl0.5 | Prf. Klaus Heubeck (RT 2005 G) |
Survival | ITP | |||
12/31/2014 | 12/31/2013 | 12/31/2014 | 12/31/2013 | |
Discount rate | 0.494%-2.011% | 0.683%-3.286% | 0.494%-2.011% | 0.683%-3.286% |
Expected rate of salary increase | 0% - 0.5% | 0.00% | − | − |
Mortality tables | PERM/F-2000C - OM77 | PERM/F-2000C - OM77 | 90% PERM 2000C/98% PERF 2000 C | 90% PERM 2000C/98% PERF 2000 C |
-100 b.p. | +100 b.p. | ||
Impact on value | Impact on income statement | Impact on value | Impact on income statement |
-146 | -94 | 134 | 89 |
Variations of less than -100bp are considered for terms of less than five years to prevent negative rates. | |||
12/31/2014 | 12/31/2013 | |
Nominal rate of pension payment increase | 3.05% | 3.25% |
Discount rate | 3.70% | 4.50% |
Expected inflation | 3.20% | 3.40% |
Mortality tables | 95% S2NA, CMI 2014 1% | S1NA_L, CMI 2013 1% |
Millions of euros | 12/31/2014 | 12/31/2013 |
Shares | 328 | 259 |
Bonds | 1,205 | 977 |
Cash equivalents | 34 | - |
Total | 1,567 | 1,236 |
Millions of euros | Increase in defined benefit obligation |
Discount rate (0.25% decrease) | 90 |
Expected inflation (0.25% increase) | 78 |
Life expectancy (1 year longer) | 36 |
12/31/11 | 12/31/10 | 12/31/2014 | 12/31/2013 | |
Discount rate | 9.73% | 10.25% | 11.17% - 11.31% | 10.77% |
Nominal rate of salary increase | 6.54%-7.20% | 6.54% - 7.20% | 6.69% | 6.18% |
Expected inflation | 4.50% | 5.00% | 5.00% | 4.50% |
Cost of health insurance | 7.64% | 8.15% | 8.15% | 7.64% |
Expected return on plan assets | 11.07%-12.08% | 10.70% - 11.60% | ||
Mortality tables | AT 2000 M/F | AT 2000 M/F | AT 2000 M/F |
Millions of euros | ||||
Other provisions at December 31, | 3,392 | |||
Additions and accretion | 968 | |||
Retirements/amount applied | ||||
(735) | ||||
Translation differences and other | (539) | |||
Other provisions at December 31, | 3,086 | |||
Additions and accretion | 1,149 | |||
Retirements/amount applied | ||||
197 | ||||
Translation differences and other | ||||
Other provisions at December 31, | 3,828 |
· | Provisions for disputes regarding federal, state and municipal taxes totaling approximately 813 million euros (735 million euros at December 31, 2013). |
· | Provisions for labor-related contingencies of approximately 315 million euros (307 million euros at December 31, 2013), which basically relate to claims filed by former and outsourced employees. |
· | Civil claims by private consumers and consumer associations regarding services rendered, and other legal proceedings related with normal operations. Certain administrative proceedings are also in progress concerning disputes about obligations established in sector regulations. The amount accrued for these matters totals approximately 373 million euros (303 million euros at December 31, 2013). |
Exchange rate risk |
Interest rate risk |
Share price risk |
Millions of euros Currency | Change | Impact on the consolidated income statement | Impact on consolidated equity |
All currencies vs. EUR | 10% | 112 | (180) |
USD vs. EUR | 10% | 15 | 32 |
European currencies vs. EUR | 10% | 1 | (353) |
Latin American currencies vs. USD | 10% | 96 | 141 |
All currencies vs. EUR | (10)% | (112) | 180 |
USD vs. EUR | (10)% | (15) | (32) |
European currencies vs. EUR | (10)% | (1) | 353 |
Latin American currencies vs. USD | (10)% | (96) | (141) |
Millions of euros | |||
Currency | Change | Impact on the consolidated income statement | Impact on consolidated equity |
All currencies vs EUR | 10% | 76 | (284) |
USD vs EUR | 10% | 2 | (107) |
European currencies vs EUR | 10% | 1 | (230) |
Latin American currencies vs USD | 10% | 73 | 53 |
All currencies vs EUR | (10)% | (76) | 284 |
USD vs EUR | (10)% | (2) | 107 |
European currencies vs EUR | (10)% | (1) | 230 |
Latin American currencies vs USD | (10)% | (73) | (53) |
Millions of euros Change in basis points (bp) (*) | Impact on consolidated income statement | Impact on consolidated equity | ||
Millions of euros | Millions of euros | |||
Change in basis points (bp) | Impact on consolidated income statement | Impact on consolidated equity | ||
+100bp | (141) | 779 | (111) | 370 |
-100bp | 147 | 849 | 68 | (113) |
(*) Impact on results of 100bp change in all currencies, except the pound sterling and the US dollar. |
1. | The Telefónica Group’s average maturity of net financial debt is intended to stay above 6 years, or be restored above that threshold in a reasonable period of time if it eventually falls below it. This principle is considered as a guideline when managing debt and access to credit markets, but not a rigid requirement. When calculating the average maturity for the net financial debt and part of the undrawn credit lines can be considered as offsetting the shorter debt maturities, and extension options on some financing facilities may be considered as exercised, for calculation purposes. |
2. | The Telefónica Group must be able to pay all commitments over the next 12 months without accessing new borrowing or |
1. | Partly matching assets to liabilities (those not guaranteed by the parent company) in the Telefónica Group’s Latin American companies such that any potential asset impairment would be accompanied by a reduction in liabilities; and |
2. | Repatriating funds generated in Latin America that are not required for the pursuit of new, profitable business development opportunities in the region. |
2) Matching of the underlying to one side of the derivative. |
3) Matching the company contracting the derivative and the company that owns the underlying. |
4) Ability to measure the derivative’s fair value using the valuation systems available to the Telefónica Group. |
The Telefónica Group uses a number of tools to measure and manage risks in derivatives and debt. The main ones are Kondor+, licensed by Reuters, which is widely used by financial institutions, and MBRM specialist financial calculator libraries. |
5) Sale of options only when there is an underlying exposure. |
· | Variations in market interest rates (either money-market rates, credit spreads or both) that affect the value of the underlying asset or the measurement of the cash |
· | Variations in exchange rates that change the value of the underlying asset in the company’s functional currency and affect the measurement of the cash flow in the functional |
· | Variations in the volatility of any financial variable, asset or liability that affect either the valuation or the measurement of cash flows on debt or investments with embedded options, whether or not these options are |
· | Variations in the valuation of any financial asset, particularly shares of companies included in the portfolio of “Available-for-sale financial assets”. |
· | Hedges can cover all or part of the value of the |
· | The risk to be hedged can be for the whole period of the transaction or for only part of the |
· | The underlying may be a highly probable future transaction, or a contractual underlying (loan, foreign currency payment, investment, financial asset, etc.) or a combination of both that defines an underlying with a longer term. |
· | Fair value hedges. |
· | Cash flow hedges. Such hedges can be set at any value of the risk to be hedged (interest rates, exchange rates, etc.) or for a defined range (interest rates between 2% and 4%, above 4%, etc.). In this last case, the hedging instrument used is options and only the intrinsic value of the option is recognized as an effective hedge. |
· | Hedges of net investment in consolidated foreign subsidiaries. Generally such hedges are arranged by the parent company and the other Telefónica holding companies. Wherever possible, these hedges are implemented through real debt in foreign currency. Often, however, this is not always possible as many Latin American currencies are non-convertible, making it impossible for non-resident companies to issue local currency investment. |
(Millions of euros) | 2011 | 2010 | 2009 | ||||||||||||
Millions of euros | 2014 | 2013 | 2012 | ||||||||||||
Interest income | 586 | 454 | 528 | 553 | 613 | 557 | |||||||||
Dividends received | 42 | 40 | 45 | 5 | 11 | 28 | |||||||||
Other financial income | 181 | 266 | 151 | 228 | 203 | 276 | |||||||||
Subtotal | 786 | 827 | 861 | ||||||||||||
Changes in fair value of financial assets at fair value through profit or loss | 1,004 | (427) | 648 | ||||||||||||
Changes in fair value of financial liabilities at fair value through profit or loss | (1,059) | 388 | (550) | ||||||||||||
Transfer from equity to profit and loss from cash flow hedges | (163) | (121) | (173) | ||||||||||||
Transfer from equity to profit and loss from available-for-sale assets and others | − | (52) | (50) | ||||||||||||
Gain/(loss) on fair value hedges | 865 | (935) | 198 | ||||||||||||
(Loss)/gain on adjustment to items hedged by fair value hedges | (796) | 961 | (145) | ||||||||||||
Subtotal | (149) | (186) | (72) | ||||||||||||
Interest expenses | (2,671 | ) | (2,514 | ) | (3,036 | ) | (2,556) | (2,898) | (3,094) | ||||||
Ineffective portion of cash flow hedges | 1 | (16 | ) | (17 | ) | − | 1 | ||||||||
Accretion of provisions and other liabilities | (106 | ) | (145 | ) | (254 | ) | (400) | (201) | (469) | ||||||
Changes in fair value of financial assets at fair value through profit or loss | 573 | 25 | 124 | ||||||||||||
Changes in fair value of financial liabilities at fair value through profit or loss | (808 | ) | (39 | ) | (132 | ) | |||||||||
Transfer from equity to profit and loss from cash flow hedges | (210 | ) | (73 | ) | 77 | ||||||||||
Transfer from equity to profit and loss from available-for-sale assets | (3 | ) | (202 | ) | 4 | ||||||||||
Gain/(loss) on fair value hedges | 908 | 168 | (427 | ) | |||||||||||
(Loss)/gain on adjustment to items hedged by fair value hedges | (747 | ) | (211 | ) | 439 | ||||||||||
Other expenses | (528 | ) | (290 | ) | (269 | ) | |||||||||
Net finance costs excluding foreign exchange differences | (2,782 | ) | (2,537 | ) | (2,767 | ) | |||||||||
Other financial expenses | (200) | (238) | (289) | ||||||||||||
Subtotal | (3,156) | (3,337) | (3,851) | ||||||||||||
Net finance costs excluding foreign exchange differences and hyperinflationary adjustments | (2,519) | (2,696) | (3,062) | ||||||||||||
2014 | ||||||
Millions of euros | Fair value (**) | Notional amount Maturities (*) | ||||
Derivatives | 2015 | 2016 | 2017 | Subsequent years | Total | |
Interest rate hedges | (482) | (1,384) | 1,877 | 292 | (3,502) | (2,717) |
Cash flow hedges | 648 | (1,050) | 706 | 460 | 3,265 | 3,381 |
Fair value hedges | (1,130) | (334) | 1,171 | (168) | (6,767) | (6,098) |
Exchange rate hedges | (966) | 7,784 | 3,141 | 913 | 3,799 | 15,637 |
Cash flow hedges | (964) | 7,992 | 3,141 | 913 | 3,799 | 15,845 |
Fair value hedges | (2) | (208) | (208) | |||
Interest and exchange rate hedges | (890) | (538) | 422 | 64 | 1,495 | 1,443 |
Cash flow hedges | (592) | (373) | 465 | 167 | 2,675 | 2,934 |
Fair value hedges | (298) | (165) | (43) | (103) | (1,180) | (1,491) |
Net investment hedges | (121) | (1,436) | (750) | (60) | (2,246) | |
Other derivatives | (221) | 7,957 | 51 | (1,183) | (1,437) | 5,388 |
Interest rate | 34 | 7,893 | 452 | (325) | (1,557) | 6,463 |
Exchange rate | (145) | 91 | (401) | (108) | 120 | (298) |
Others | (110) | (27) | (750) | (777) | ||
(*) For interest rate hedges, the positive amount is in terms of fixed “payment.” For foreign currency hedges, a positive amount means payment in functional vs. foreign currency. | ||||||
(**) Positive amounts indicate payables. | ||||||
(***)The fair value of the Telefónica Group derivatives amounted to a positive MTM (accounts receivable) of 2,680 million euros. | ||||||
Millions of euros | Fair value: at 12/31/11 (**) | Maturity (notional amount) (*) | ||||
Derivatives | 2012 | 2013 | 2014 | Subsequent years | Total | |
Interest rate hedges | (81) | (1,785) | 668 | (825) | 8,217 | 6,275 |
Cash flow hedges | 866 | (1,118) | 1,086 | (350) | 11,380 | 10,998 |
Fair value hedges | (947) | (667) | (418) | (475) | (3,163) | (4,723) |
Exchange rate hedges | (962) | 328 | 339 | 77 | 6,702 | 7,446 |
Cash flow hedges | (932) | 340 | 230 | 1 | 6,519 | 7,090 |
Fair value hedges | (30) | (12) | 109 | 76 | 183 | 356 |
Interest and exchange rate hedges | (618) | (76) | 1,110 | (45) | 2,547 | 3,536 |
Cash flow hedges | (597) | (31) | 1,158 | 66 | 2,098 | 3,291 |
Fair value hedges | (21) | (45) | (48) | (111) | 449 | 245 |
Hedge of net investment in foreign operations | (81) | (1,427) | (160) | (280) | (1,313) | (3,180) |
Derivatives not designated as hedges | (488) | 9,375 | (480) | (144) | (1,516) | 7,235 |
Interest rate | (230) | 8,038 | (579) | (144) | (2,404) | 4,911 |
Exchange rate | (255) | 1,338 | 99 | - | 888 | 2,325 |
Interest and exchange rate | (3) | (1) | - | - | - | (1) |
Millions of euros | Fair value: at 12/31/10 (**) | Maturity (notional amount) (*) | ||||
Derivatives | 2011 | 2012 | 2013 | Subsequent years | Total | |
Interest rate hedges | (355) | (5,850) | 60 | (2,083) | 7,202 | (671) |
Cash flow hedges | 266 | (3,504) | 556 | (438) | 8,487 | 5,101 |
Fair value hedges | (621) | (2,346) | (496) | (1,645) | (1,285) | (5,772) |
Exchange rate hedges | (405) | 1,329 | 113 | 579 | 4,323 | 6,344 |
Cash flow hedges | (404) | 1,206 | 113 | 579 | 4,323 | 6,221 |
Fair value hedges | (1) | 123 | - | - | - | 123 |
Interest and exchange rate hedges | (31) | 253 | 272 | 1,162 | 2,595 | 4,282 |
Cash flow hedges | (87) | 191 | 246 | 1,148 | 2,252 | 3,837 |
Fair value hedges | 56 | 62 | 26 | 14 | 343 | 445 |
Hedge of net investment in foreign operations | (234) | (2,221) | (118) | (160) | (1,030) | (3,529) |
Derivatives not designated as hedges | (411) | 4,839 | 318 | (289) | (428) | 4,440 |
Interest rate | (245) | 4,231 | 426 | (427) | (1,316) | 2,914 |
Exchange rate | (168) | 528 | (107) | 138 | 888 | 1,447 |
Interest and exchange rate | 2 | 80 | (1) | - | - | 79 |
2013 | ||||||
Millions of euros | Fair value (**) | Notional amount Maturities (*) | ||||
Derivatives | 2014 | 2015 | 2016 | Subsequent years | Total | |
Interest rate hedges | 456 | (4,266) | 1,934 | 845 | (2,079) | (3,566) |
Cash flow hedges | 758 | (3,462) | 2,099 | (96) | 8,143 | 6,684 |
Fair value hedges | (302) | (804) | (165) | 941 | (10,222) | (10,250) |
Exchange rate hedges | 355 | (467) | 1,551 | 3,128 | 4,709 | 8,921 |
Cash flow hedges | 357 | (330) | 1,551 | 3,128 | 4,709 | 9,058 |
Fair value hedges | (2) | (137) | (137) | |||
Interest and exchange rate hedges | (233) | (468) | (321) | 465 | 1,923 | 1,599 |
Cash flow hedges | (58) | (383) | (200) | 566 | 2,779 | 2,762 |
Fair value hedges | (175) | (85) | (121) | (101) | (856) | (1,163) |
Net investment hedges | (277) | (1,992) | (162) | (1,151) | (60) | (3,365) |
Other derivatives | (434) | 1,918 | (63) | (710) | (1,928) | (783) |
Interest rate | (359) | 2,353 | (141) | (710) | (1,941) | (439) |
Exchange rate | (75) | (435) | 78 | 13 | (344) | |
Others | − | |||||
(*) For interest rate hedges, the positive amount is in terms of fixed “payment.” For foreign currency hedges, a positive amount means payment in functional vs. foreign currency. | ||||||
(**) Positive amounts indicate payables. | ||||||
Millions of euros | ||||
Deferred tax assets | Deferred tax liabilities | |||
Balance at December 31, 2010 | 5,693 | 6,074 | ||
Millions of euros | Deferred tax assets | Deferred tax liabilities | ||
Balance at December 31, 2013 | 6,376 | 3,063 | ||
Additions | 2,162 | 779 | 1,763 | 408 |
Disposals | (1,326) | (1,688) | (1,152) | (1,009) |
Transfers | 48 | (145) | (132) | 58 |
Translation differences and hyperinflation adjustments | (163) | (302) | 3 | 22 |
Company movements and others | 3 | 21 | 9 | 24 |
Balance at December 31, 2011 | 6,417 | 4,739 | ||
Balance at December 31, 2014 | 6,867 | 2,566 | ||
Millions of euros | Deferred tax assets | Deferred tax liabilities |
Balance at December 31, 2012 | 7,308 | 4,788 |
Additions | 1,662 | 614 |
Disposals | (1,007) | (691) |
Transfers | (1,442) | (1,516) |
Translation differences and hyperinflation adjustments | (156) | (149) |
Company movements and others | 11 | 17 |
Balance at December 31, 2013 | 6,376 | 3,063 |
Millions of euros | ||||||||
Deferred tax assets | Deferred tax liabilities | |||||||
Balance at December 31, 2009 | 5,971 | 3,082 | ||||||
Additions | 1,221 | 586 | ||||||
Disposals | (2,270 | ) | (421 | ) | ||||
Transfers | (16 | ) | 365 | |||||
Translation differences and hyperinflation adjustments | 207 | 312 | ||||||
Company movements and others | 580 | 2,150 | ||||||
Balance at December 31, 2010 | 5,693 | 6,074 |
12/31/11 | Total | Less than 1 year | More than 1 year | |||
12/31/2014 | Total | Less than 1 year | More than 1 year | |||
Deferred tax assets | 6,417 | 1,094 | 5,323 | 6,867 | 1,239 | 5,628 |
Deferred tax liabilities | 4,739 | 777 | 3,962 | 2,566 | 269 | 2,297 |
Total | Less than 1 year | More than 1 year | |
Tax loss carryforwards | 9,940 | - | 9,940 |
Millions of euros | ||||||||||||||||||
2011 | 2010 | |||||||||||||||||
Deferred tax | Deferred tax | Deferred tax | Deferred tax | |||||||||||||||
assets | liabilities | assets | liabilities | |||||||||||||||
Millions of euros | 12/31/2014 | 12/31/2013 | ||||||||||||||||
Goodwill and intangible assets | 792 | 1,239 | ||||||||||||||||
Property, plant and equipment | 283 | 753 | 273 | 467 | 793 | 651 | ||||||||||||
Intangible assets | 268 | 2,211 | 265 | 4,522 | ||||||||||||||
Personnel commitments | 1,546 | - | 956 | - | 969 | 1,238 | ||||||||||||
Provisions | 1,267 | 158 | 1,172 | 81 | 1,381 | 1,017 | ||||||||||||
Investments in subsidiaries, associates and joint ventures | 614 | 975 | 443 | 532 | ||||||||||||||
Investments in subsidiaries, associates and other shareholdings | 867 | 869 | ||||||||||||||||
Inventories and receivables | 436 | 203 | ||||||||||||||||
Other | 757 | 642 | 873 | 472 | 1,746 | 1,035 | ||||||||||||
Total | 4,735 | 4,739 | 3,982 | 6,074 | ||||||||||||||
Total deferred tax assets for temporary differences | 6,984 | 6,252 | ||||||||||||||||
Millions of euros | 12/31/2014 | 12/31/2013 |
Goodwill and intangible assets | 1,550 | 1,659 |
Property, plant and equipment | 1,395 | 1,304 |
Personnel commitments | 25 | − |
Provisions | 28 | 15 |
Investments in subsidiaries, associates and other shareholdings | 1,366 | 1,653 |
Inventories and receivables | 89 | 26 |
Other | 771 | 282 |
Total deferred tax liabilities for temporary differences | 5,224 | 4,939 |
Millions of euros | ||||||||||
Balance at | Balance at | |||||||||
12/31/11 | 12/31/10 | |||||||||
Taxes payable: | ||||||||||
Millions of euros | Balance at 12/31/2014 | Balance at 12/31/2013 | ||||||||
Taxes payable | ||||||||||
Tax withholdings | 163 | 124 | 126 | 103 | ||||||
Indirect taxes | 1,018 | 1,164 | 1,012 | 896 | ||||||
Social security | 187 | 228 | 168 | 152 | ||||||
Current income taxes payable | 611 | 695 | 335 | 575 | ||||||
Other | 589 | 611 | 385 | 477 | ||||||
Total | 2,568 | 2,822 | 2,026 | 2,203 | ||||||
Millions of euros | ||||||||
Balance at | Balance at | |||||||
12/31/11 | 12/31/10 | |||||||
Tax receivables: | ||||||||
Indirect tax | 772 | 775 | ||||||
Current income taxes receivable | 569 | 338 | ||||||
Other | 226 | 218 | ||||||
Total | 1,567 | 1,331 |
Millions of euros | Balance at 12/31/2014 | Balance at 12/31/2013 |
Tax receivables | ||
Indirect tax | 595 | 620 |
Current income taxes receivable | 953 | 870 |
Other | 201 | 174 |
Total | 1,749 | 1,664 |
Millions of euros | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Accounting profit before tax | 6,488 | 13,901 | 10,387 | |||||||||
Tax expense at prevailing statutory rate (30%) | 1,946 | 4,170 | 3,116 | |||||||||
Effect of statutory rate in other countries | (19 | ) | (52 | ) | (20 | ) | ||||||
Variation in tax expense from new taxes | 11 | 10 | (15 | ) | ||||||||
Permanent differences | (22 | ) | (69 | ) | (402 | ) | ||||||
Changes in deferred tax charge due to changes in tax rate | (26 | ) | (21 | ) | - | |||||||
Capitalization of tax deduction and tax relief | (97 | ) | (112 | ) | (143 | ) | ||||||
Use of loss carryforwards | (200 | ) | (134 | ) | (5 | ) | ||||||
Increase / (Decrease) in tax expense arising from temporary differences | (1,344 | ) | (42 | ) | (82 | ) | ||||||
Other | 52 | 79 | 1 | |||||||||
Income tax expense | 301 | 3,829 | 2,450 | |||||||||
Breakdown of current/deferred tax expense | ||||||||||||
Current tax expense | 1,557 | 2,455 | 3,848 | |||||||||
Deferred tax benefit | (1,256 | ) | 1,374 | (1,398 | ) | |||||||
Total income tax expense | 301 | 3,829 | 2,450 |
Millions of euros | 2014 | 2013 | 2012 |
Accounting profit before tax | 3,635 | 6,280 | 5,864 |
Tax expense at prevailing statutory rate | 1,046 | 1,935 | 1,903 |
Permanent differences | 317 | (124) | 307 |
Changes in deferred tax charge due to changes in tax rates | 89 | (21) | (27) |
Capitalization of tax deduction and tax relief | (74) | (146) | (81) |
Use/ Capitalization of loss carryforwards | (255) | (547) | (404) |
Increase / (Decrease) in tax expense arising from temporary differences | (792) | 95 | (297) |
Other | 52 | 119 | 60 |
Income tax expense | 383 | 1,311 | 1,461 |
Breakdown of current/deferred tax expense | |||
Current tax expense | 1,480 | 2,221 | 1,726 |
Deferred tax benefit | (1,097) | (910) | (265) |
Total income tax expense | 383 | 1,311 | 1,461 |
a) | Tax inspections |
b) | Tax deductibility of financial goodwill (Article 12.5) |
· | The last ten years in Germany. |
· | The last seven years in |
· | The last five years in Brazil, Mexico, Uruguay, Colombia and the |
· | The last four years in Venezuela, |
· | The last three years in Chile, Ecuador, Nicaragua, El Salvador, the |
Millions of euros | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 | |||||||||
Rendering of services | 58,415 | 56,434 | 52,498 | 46,007 | 52,386 | 57,810 | |||||||||
Net sales | 4,422 | 4,303 | 4,233 | 4,370 | 4,675 | 4,546 | |||||||||
Total | 62,837 | 60,737 | 56,731 | 50,377 | 57,061 | 62,356 | |||||||||
Millions of euros | 2014 | 2013 | 2012 | ||||||||||||
Own work capitalized | 774 | 794 | 822 | ||||||||||||
Gain on disposal of companies | 5 | 63 | 123 | ||||||||||||
Gain on disposal of other assets | 367 | 336 | 802 | ||||||||||||
Government grants | 36 | 42 | 51 | ||||||||||||
Other operating income | 525 | 458 | 525 | ||||||||||||
Total | 1,707 | 1,693 | 2,323 | ||||||||||||
Millions of euros | |||||||||||||||
2011 | 2010 | 2009 | |||||||||||||
Ancillary income | 445 | 882 | 584 | ||||||||||||
Own work capitalized | 739 | 737 | 720 | ||||||||||||
Government grants | 62 | 66 | 54 | ||||||||||||
Gain on disposal of assets | 861 | 4,184 | 287 | ||||||||||||
Total | 2,107 | 5,869 | 1,645 |
Millions of euros | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 | |||||||||
Leases | 1,033 | 1,083 | 1,068 | 1,039 | 947 | 1,159 | |||||||||
Advertising | 1,457 | 1,419 | 1,123 | 1,226 | 1,290 | 1,528 | |||||||||
Other external services | 10,529 | 9,726 | 7,729 | 9,811 | 10,590 | 10,800 | |||||||||
Taxes other than income tax | 1,328 | 1,279 | 1,203 | 1,094 | 1,335 | 1,436 | |||||||||
Other operating expenses | 190 | 453 | 203 | ||||||||||||
Change in trade provisions | 818 | 853 | 874 | 693 | 701 | 777 | |||||||||
Losses on disposal of fixed assets and changes in provisions for fixed assets | 43 | 1 | 81 | 58 | 277 | 706 | |||||||||
Other operating expenses | 368 | 288 | 399 | ||||||||||||
Total | 15,398 | 14,814 | 12,281 | 14,289 | 15,428 | 16,805 | |||||||||
12/31/11 | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | Over 5 years |
Operating lease obligations | 9,613 | 1,543 | 2,591 | 2,114 | 3,365 |
Purchase and other contractual obligations | 2,568 | 1,473 | 737 | 345 | 13 |
12/31/2014 | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years |
Telefónica Brazil | 3,077 | 399 | 744 | 623 | 1,311 |
Telefónica Germany | 2,976 | 549 | 816 | 580 | 1,031 |
Telefónica Hispanoamérica | 2,222 | 380 | 609 | 481 | 752 |
Telefónica Spain | 975 | 153 | 242 | 198 | 382 |
Telefónica United Kingdom | 801 | 127 | 206 | 162 | 306 |
Others | 146 | 35 | 52 | 24 | 35 |
Operating lease obligations | 10,197 | 1,643 | 2,669 | 2,068 | 3,817 |
Purchase and other contractual obligations | 9,037 | 4,295 | 2,071 | 961 | 1,710 |
2011 | 2010 | 2009 | ||||||||||||||||||||||
Average | Year-end | Average | Year-end | Average | Year-end | |||||||||||||||||||
Telefónica Spain | 35,168 | 33,929 | 35,313 | 35,379 | 35,318 | 35,338 | ||||||||||||||||||
Telefónica Latin America | 60,589 | 61,527 | 55,164 | 60,909 | 50,709 | 51,606 | ||||||||||||||||||
Telefónica Europe | 26,715 | 26,085 | 26,517 | 25,968 | 28,249 | 27,023 | ||||||||||||||||||
Subsidiaries and other companies | 163,673 | 169,486 | 152,053 | 162,850 | 140,875 | 143,459 | ||||||||||||||||||
Total | 286,145 | 291,027 | �� | 269,047 | 285,106 | 255,151 | 257,426 |
2014 | 2013 | 2012 | ||||
Average | Year-end | Average | Year-end | Average | Year-end | |
Telefónica Spain | 29,840 | 30,020 | 30,551 | 29,764 | 31,979 | 31,332 |
Telefónica United Kingdom | 7,404 | 7,436 | 9,413 | 7,432 | 11,341 | 10,986 |
Telefónica Germany | 6,596 | 10,848 | 5,655 | 5,572 | 5,592 | 5,638 |
Telefónica Brazil | 18,337 | 18,419 | 18,930 | 18,388 | 20,008 | 19,481 |
Telefónica Hispanoamérica | 38,098 | 38,104 | 38,733 | 38,638 | 38,303 | 38,771 |
Other companies | 20,222 | 18,873 | 26,611 | 26,936 | 165,375 | 26,978 |
Total | 120,497 | 123,700 | 129,893 | 126,730 | 272,598 | 133,186 |
Millions of euros | 2011 | 2010 | 2009 | 2014 | 2013 | 2012 |
Depreciation of property, plant and equipment | 6,670 | 6,159 | 6,095 | 5,357 | 6,179 | 6,931 |
Amortization of intangible assets | 3,476 | 3,144 | 2,861 | 3,191 | 3,448 | 3,502 |
Total | 10,146 | 9,303 | 8,956 | 8,548 | 9,627 | 10,433 |
Millions of euros | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Profit attributable to ordinary equity holders of the parent from continuing operations | 5,403 | 10,167 | 7,776 | |||||||||
Profit attributable to ordinary equity holders of the parent from discontinued operations | - | - | - | |||||||||
Total profit attributable to equity holders of the parent for basic earnings | 5,403 | 10,167 | 7,776 | |||||||||
Adjustment for dilutive effects of the conversion of potential ordinary shares | - | - | - | |||||||||
Total profit attributable to equity holders of the parent for diluted earnings | 5,403 | 10,167 | 7,776 |
Millions of euros | 2014 | 2013 | 2012 |
Profit attributable to ordinary equity holders of the parent | 3,001 | 4,593 | 3,928 |
Adjustment for the net coupon corresponding to undated deeply subordinated securities | (187) | (27) | − |
Adjustment for the financial expense of the debt component of the mandatorily convertible notes | − | − | − |
Total profit attributable to ordinary equity holders of the parent for basic and diluted earnings per share | 2,814 | 4,566 | 3,928 |
Thousands | ||||||||||||
Number of shares | 2011 | 2010 | 2009 | |||||||||
Weighted average number of ordinary shares (excluding treasury shares) for basic earnings per share | 4,511,165 | 4,522,228 | 4,552,656 | |||||||||
Telefónica, S.A. share option plan. | 1,675 | 6,017 | 7,908 | |||||||||
Weighted average number of ordinary shares (excluding treasury shares) outstanding for diluted earnings per share | 4,512,840 | 4,528,245 | 4,560,564 |
Thousands | |||
Number of shares | 2014 | 2013 (*) | 2012 (*) |
Weighted average number of ordinary shares (excluding treasury shares) for basic earnings per share | 4,573,586 | 4,627,912 | 4,603,539 |
Adjustment for mandatorily convertible notes | 32,803 | − | − |
Adjusted number of shares (excluding treasury shares) for basic earnings per share | 4,606,389 | 4,627,912 | 4,603,539 |
Telefónica, S.A. share option plans | 11,407 | 4,816 | 1,998 |
Weighted average number of ordinary shares (excluding treasury shares) outstanding for diluted earnings per share | 4,617,796 | 4,632,728 | 4,605,537 |
Continuing operations | Discontinued operations | Total | |||||||||||||||||||||||||||||||||||||
Figures in euros | 2011 | 2010 | 2009 | 2011 | 2010 | 2009 | 2011 | 2010 | 2009 | 2014 | 2013 (*) | 2012 (*) | |||||||||||||||||||||||||||
Basic earnings per share | 1.20 | 2.25 | 1.71 | - | - | - | 1.20 | 2.25 | 1.71 | 0.61 | 0.99 | 0.85 | |||||||||||||||||||||||||||
Diluted earnings per share | 1.20 | 2.25 | 1.71 | - | - | - | 1.20 | 2.25 | 1.71 | 0.61 | 0.99 | 0.85 | |||||||||||||||||||||||||||
(*) Restated data due to the scrip dividend. | (*) Restated data due to the scrip dividend. | ||||||||||||||||||||||||||||||||||||||
Phase / assignment date | No. of shares assigned | Outstanding shares at 12/31/14 | Unit fair value | End date |
2nd phase July 1, 2012 | 7,347,282 | 6,007,909 | 5.87 | June 30, 2015 |
3rd phase July 1, 2013 | 7,020,473 | 6,494,041 | 6.40 | June 30, 2016 |
Phase / assignment date | No. of shares assigned | Outstanding shares at 12/31/14 | Unit fair value | End date |
1st phase / October 1, 2014 | 6,927,953 | 6,918,686 | 6.82 | September 30, 2017 |
c) Telefónica, S.A. share plan: “Performance Share Plan” (PSP) (2006-2013) |
No. of shares | Unit fair value | End date | |
1st phase July 1, 2006 | 6,530,615 | 6.43 | June 30, 2009 |
No. of shares | Unit fair value | End date | |
2nd phase July 1, 2007 | 5,556,234 | 7.70 | June 30, 2010 |
No. of shares | Unit fair value | End date | |
3rd phase July 1, 2008 | 5,286,980 | 8.39 | June 30, 2011 |
No. of shares assigned | Outstanding shares at 12/31/11 | Unit fair value | End date | |
4th phase July 1, 2009 | 6,356,597 | 5,407,401 | 8.41 | June 30, 2012 |
5th phase July 1, 2010 | 5,025,657 | 4,684,289 | 9.08 | June 30, 2013 |
d) Telefónica, S.A. global share plan: “Global Employee Share |
Cash received from customers decreased by 11.03% to 61,522 million euros (from 69,149 million euros in 2013). Driven by the revenues evolution in Brazil and Spain, mainly due to the ARPU decrease and lower accesses, partially offset by the increase in the sale of handsets. Active management of collection assets and monetization of revenues on financed sales also helped maintain the levels observed during the previous period. The |
· | Cash received from customers decreased by 9.0% to 69,149 million euros (from 75,962 million euros in 2012). The |
Phase | No. of shares assigned | Unit fair value | End date |
1st phase July 1, 2011 | 5,545,628 | 8.28 | June 30, 2014 |
· | Tax payments amounted to 1,806 million euros in 2013, 10.8% lower than those made in 2012 (2,024 million euros). The main reason for this decrease was the reduction in profit, since the non-recurring payments in 2012 of 246 million euros arising from the settlement of tax assessments raised on inspection and court decisions affecting the consolidated tax Group and the return of 284 million euros in 2013 were offset by higher payments on account in Spain in 2013 due to the latest legislative amendments. |
· | Payments on investments in property, plant and equipment and intangible assets totaled 9,205 million euros in 2014, 4.8% lower than 2013 (9,674 million euros). This decrease has been |
· | During 2014, the payment on investments in companies, net of cash and cash equivalents acquired amounted to 5,020 million euros, mainly due to the acquisition of E-Plus (see Note 5) and the acquisition of a 22% stake in Distribuidora de Televisión Digital, S.A. (see Note 9). |
· | During 2014, proceeds on financial investments not included under cash equivalents, amounted to 302 million euros, mainly due to the sale of Telecom Italia´s bond for a nominal amount of 103 million euros, plus interest. |
· | Payments on financial investments not included under cash equivalents totaled 247 million euros for 2014, mainly reflected legal deposits, financial investments by Telefónica insurance companies and options on equity instruments. |
· | In 2014, net cash flows in respect of cash surpluses not included under cash equivalents amounted to 217 million euros, up 531 million from 2013, mainly due to the exchange rate effect in Venezuela. |
· | Payments on investments in property, plant and equipment and intangible assets totaled 9,674 million euros in 2013, 2.0% higher than 2012 (9,481 million euros). This increase was due to higher purchases of spectrum licenses in Brazil and the United Kingdom, amounting to 531 and 669 million euros, respectively. |
· | Proceeds on disposals of property, plant and equipment and intangible assets amounted to 561 million euros in 2013, a decrease of 40.3% mainly due to a reduction in the disposal of non-strategic assets (205 million euros). |
· | During the year, proceeds on disposals of companies, net of cash and cash equivalents, amounted to 260 million euros. The most significant divestment was the sale of Hispasat, which entailed a net collection of 123 million euros. |
· | During 2013, the payment on investments in companies, net of cash and cash equivalent acquired amounted to 398 million euros, mainly due to the share capital increase in Telco, S.p.A. (324 million euros, see Note 9). |
· | Payments on financial investments not included under cash equivalents totaled 386 million euros for 2013, and mainly reflected the acquisition of a Telecom Italia, S.p.A. bond for 103 million euros, as well as legal deposits, financial investments by Telefónica insurance companies and options on equity instruments. |
· | In 2013, net cash flows in respect of cash surpluses not included under cash equivalents amounted to 314 million euros, in line with the 318 million euros recorded in 2012. Net investments in 2011 amounted to 646 million euros. |
· | Dividends payments are related mainly to the dividends paid by Telefónica, S.A. as well as payments to non-controlling interests of Telefónica Brasil, S.A. (187 million euros) and Telefonica Deutchland Holding, A.G. (122 million euros). |
· | Transactions with shareholders amounted to 427 million euros in 2014 (65 million in 2013). In 2014 the share capital increase by the non-controlling interests in Telefónica Deutschland amounted to 814 million euros received, offset by to net payments for transactions with Telefónica, S.A. treasury shares. In 2013 the proceeds received from the sale of 40% of the assets in Guatemala, Nicaragua, El Salvador and Panama in 2013 (377 million euros) offset by operations with Telefónica, S.A.’s treasury shares as in 2013 there were two relevant share transactions (see Note 12). |
· | The proceeds on operations with other equity holders amounted to 3,713 million euros in 2014, and include the amount related to the issuances of undated deeply subordinated securities of 1,000, 750 and 850 million euros and the issuance of notes mandatorily convertible into shares of Telefónica, S.A. amounting to 1,285 million euros (see Note 12). It also includes the payment of the coupon related to the two issuances of undated deeply subordinated securities issued in 2013 amounting to 172 million euros. |
· | In 2014, proceeds from new issues on bonds totaled 4,453 million euros, 21% lower than the 2013 proceeds (5,634 million euros), mainly issued under the London Stock Exchange’s EMTN program (equivalent to 2,550 million euros) of Telefónica Emisiones, S.A.U. and under the SHELF program (500 million dollars, equivalent to 368 million euros). Additionally, it includes the issue mandatorily convertible into Telecom Italia, S.p.A. shares amounting to 750 million euros, and the bond issue by Telefónica Deutschland Holding, A.G. amounting to 500 million euros. The cancellation of debentures and bonds amounted to 5,116 million euros, in line with 2013 and related to the maturity of bonds. |
· | In 2014, proceeds on loans, borrowings and promissory notes amounted to 4,290 million euros mainly related to borrowings proceeds of 2,000 million euros in Telefónica, S.A. (see Appendix V). |
· | In 2014, repayment of loans, borrowings and promissory notes amounted to 8,604 million euros (6,232 million euros in 2013) mainly related to prepayments of loans and the maturity of 2,000 million euros of Tranche A2, 1,672 million euros of Tranche A3 and 923 million euros of Tranche D2 of the syndicated loan of Telefónica, S.A. and 801 million euros of Tranche D1 of the syndicated loan of Telefónica Europe, B.V. |
· | Transactions with shareholders amounted to 65 million euros in 2013 (656 million in 2012). The year 2013 mainly reflected the sale of 40% of the assets in Guatemala, Nicaragua, El Salvador and Panama which brought in net proceeds of 377 million euros, partially offset by the shares acquired from non-controlling interests mainly by Telefónica Czech Republic (61 million euros), and net payments for transactions with Telefónica, S.A. treasury shares. The year 2012 mainly reflected the public share offer of Telefónica Deutschland that brought in net proceeds |
· | The proceeds on operations with other equity holders amounted to 2,466 million euros in 2013, and included the amount related to the two issuances of undated deeply subordinated securities of 1,750 and 716 million euros, respectively (see Note 12). |
· | In 2013, proceeds from new issues on bonds totaled 5,634 million euros, 30.4% lower than the 2012 proceeds (8,090 million euros), mainly made under the London Stock Exchange’s EMTN program (3,432 million euros equivalents) of Telefónica Emisiones. The cancellation of debentures and bonds amounted to 5,667 million euros, a 31.3% increase compared to 2012, related to the maturity of bonds. |
· | In 2013, repayment of loans, borrowings and promissory notes amounted to 6,232 million euros (8,041 million euros in 2012) and were mainly related to the maturity of Tranche A1 of the syndicated loan signed by Telefónica, S.A. on July 28, 2010 (1,000 million euros), and also to the reduction of the outstanding principal of Tranche B of the same syndicated loan by 3,000 million euros. |
o | The entry of a new shareholder in Vivo, sharing the control of Vivo with Telefónica in conditions identical to those that were applicable to the PT Companies when they had a participation in Brasilcel N.V., or |
o | That Telefónica ceases to have any direct or indirect financial interest in TIM Participações S.A. |
§ | To impose on Telefónica a fine of 15 million Brazilian reais, for having allegedly breached the spirit and the goal of the agreement signed between Telefónica and CADE (as a condition to the approval of Telefónica's original acquisition of an interest in Telecom Italia, S.p.A. in 2007), due to the subscription of non-voting shares of Telco on a recent capital increases. This decision also requires Telefónica to divest such non-voting shares of Telco. |
d) | Auditors’ fees |
Millions of euros | ||||||||
2011 | 2010 | |||||||
Audit services (1) | 26.29 | 25.75 | ||||||
Audit-related services (2) | 1.64 | 1.92 | ||||||
Tax services (3) | - | 0.03 | ||||||
All other services (4) | - | 0.01 | ||||||
TOTAL | 27.93 | 27.71 |
Millions of euros | 2014 | 2013 |
Audit services (1) | 20.02 | 21.25 |
Audit-related services (2) | 1.28 | 1.47 |
Total | 21.30 | 22.72 |
(1) Audit services: services included under this heading are mainly the audit of the annual and reviews of interim financial statements, work to comply with the requirements of the Sarbanes-Oxley Act (Section 404) and the review of the 20-F report to be filed with the US Securities and Exchange Commission (SEC). | ||
(2) Audit-related services: This heading mainly includes services related to the review of the information required by regulatory authorities, agreed financial reporting procedures not requested by legal or regulatory bodies and the review of corporate responsibility reports. |
Millions of euros | ||||||||||
2011 | 2010 | |||||||||
Millions of euros | 2014 | 2013 | ||||||||
Audit services | 0.68 | 0.75 | 1.17 | 1.11 | ||||||
Audit-related services | 0.76 | 1.26 | 1.18 | 0.36 | ||||||
Tax services: | 6.37 | 7.29 | ||||||||
Tax services | 7.29 | 7.59 | ||||||||
All other services (consulting, advisory, etc.) | 24.60 | 18.80 | 37.43 | 34.80 | ||||||
TOTAL | 32.41 | 28.10 | ||||||||
Total | 47.07 | 43.86 |
(Amounts in euros) | |||
Position | Board of Directors | Executive Commission | Advisory or Control Committees |
Chairman | 300,000 | 100,000 | 28,000 |
Vice Chairman | 250,000 | 100,000 | - |
Board member: | |||
Executive | - | - | - |
Proprietary | 150,000 | 100,000 | 14,000 |
Independent | 150,000 | 100,000 | 14,000 |
Other external | 150,000 | 100,000 | 14,000 |
Amounts in euros Position | Board of Directors | Executive Committee | Advisory or Control Committees (*) |
Chairman | 240,000 | 80,000 | 22,400 |
Vice Chairman | 200,000 | 80,000 | − |
Executive | − | − | − |
Proprietary | 120,000 | 80,000 | 11,200 |
Independent | 120,000 | 80,000 | 11,200 |
Other external | 120,000 | 80,000 | 11,200 |
Director | Wage/ Compensation1 | Fixed Payment Board Committees2 | Attendance fees3 | Short-term Variable Compensation4 | Other items5 | TOTAL | ||||||||||||||||||
Executive | ||||||||||||||||||||||||
Mr. César Alierta Izuel | 2,530,800 | 100,000 | -- | 4,015,440 | 265,300 | 6,911,540 | ||||||||||||||||||
Mr. Julio Linares López | 1,973,100 | -- | -- | 3,011,580 | 126,084 | 5,110,764 | ||||||||||||||||||
Mr. José María Álvarez-Pallete López | 316,000 | -- | -- | -- | 21,570 | 337,570 | ||||||||||||||||||
Proprietary | ||||||||||||||||||||||||
Mr. Isidro Fainé Casas | 250,000 | 100,000 | -- | -- | 10,000 | 360,000 | ||||||||||||||||||
Mr. Vitalino Nafría Aznar | 250,000 | 56,000 | 26,250 | -- | -- | 332,250 | ||||||||||||||||||
Mr. José María Abril Pérez | 150,000 | 122,167 | 13,750 | -- | -- | 285,917 | ||||||||||||||||||
Mr. Antonio Massanell Lavilla | 150,000 | 70,000 | 32,500 | -- | 10,000 | 262,500 | ||||||||||||||||||
Mr. Chang Xiaobing | 87,500 | -- | -- | -- | -- | 87,500 | ||||||||||||||||||
Independent | ||||||||||||||||||||||||
Mr. David Arculus | 150,000 | 28,000 | 11,250 | -- | -- | 189,250 | ||||||||||||||||||
Ms. Eva Castillo Sanz | 150,000 | 42,000 | 25,000 | -- | -- | 217,000 | ||||||||||||||||||
Mr. Carlos Colomer Casellas | 150,000 | 156,000 | 21,250 | -- | 130,000 | 457,250 | ||||||||||||||||||
Mr. Alfonso Ferrari Herrero | 150,000 | 212,000 | 58,750 | -- | 132,500 | 553,250 | ||||||||||||||||||
Mr. Luiz Fernando Furlán | 150,000 | 14,000 | 5,000 | -- | -- | 169,000 | ||||||||||||||||||
Mr. Gonzalo Hinojosa Fernández de Angulo | 150,000 | 198,000 | 48,750 | -- | 133,750 | 530,500 | ||||||||||||||||||
Mr. Pablo Isla Álvarez de Tejera | 150,000 | 75,833 | 13,750 | -- | -- | 239,583 | ||||||||||||||||||
Mr. Javier de Paz Mancho | 150,000 | 156,000 | 11,250 | -- | 120,000 | 437,250 | ||||||||||||||||||
Other external | ||||||||||||||||||||||||
Mr. Fernando de Almansa Moreno-Barreda | 150,000 | 56,000 | 25,000 | -- | 10,000 | 241,000 | ||||||||||||||||||
Mr. Peter Erskine | 150,000 | 156,000 | 27,500 | -- | 3,750 | 337,250 |
Millions of euros | Present value | Revaluation | Pending payment |
Within one year | 167 | − | 167 |
From one to five years | 608 | 87 | 695 |
More than five years | 596 | 1,412 | 2,008 |
Total | 1,371 | 1,499 | 2,870 |
Millions of euros | Present value | Revaluation | Pending payment |
Within one year | 374 | 21 | 395 |
From one to five years | 197 | 6 | 203 |
More than five years | − | − | − |
Total | 571 | 27 | 598 |
Millions of euros | Present value | Revaluation | Pending receivables |
Within one year | 223 | 3 | 226 |
From one to five years | 99 | 1 | 100 |
More than five years | − | − | − |
Total | 322 | 4 | 326 |
Impairment provision | (36) | − | − |
Total present value after impairment provision | 286 | 4 | − |
F-101 |
Director | Wage / Compen-sation1 | Fixed payment2 | Attendance fees3 | Short term variable compen-sation4 | Fixed payments Board Committees5 | Other items6 | Total |
Mr. César Alierta Izuel | 2,230,800 | 240,000 | - | 3,050,000 | 80,000 | 155,110 | 5,755,910 |
Mr. Isidro Fainé Casas | - | 200,000 | - | - | 80,000 | 8,000 | 288,000 |
Mr. José María Abril Pérez | - | 200,000 | 3,000 | - | 91,200 | - | 294,200 |
Mr. Julio Linares López | - | 200,000 | 16,000 | - | 45,733 | - | 261,733 |
Mr. José María Alvarez-Pallete López | 1,923,100 | - | - | 2,900,000 | - | 128,415 | 4,951,515 |
Mr. Fernando de Almansa Moreno-Barreda | - | 120,000 | 14,000 | - | 33,600 | 8,000 | 175,600 |
Ms. Eva Castillo Sanz7 | 1,264,000 | - | - | 1,463,712 | - | 53,554 | 2,781,266 |
Mr. Carlos Colomer Casellas | - | 120,000 | 24,000 | - | 147,200 | 8,000 | 299,200 |
Mr. Peter Erskine | - | 120,000 | 17,000 | - | 124,800 | - | 261,800 |
Mr. Santiago Fernández Valbuena | - | - | - | - | - | - | - |
Mr. Alfonso Ferrari Herrero | - | 120,000 | 35,000 | - | 158,400 | 8,000 | 321,400 |
Mr. Luiz Fernando Furlán | - | 120,000 | - | - | - | - | 120,000 |
Mr. Gonzalo Hinojosa Fernández de Angulo | - | 120,000 | 30,000 | - | 158,400 | 8,000 | 316,400 |
Mr. Pablo Isla Álvarez de Tejera | - | 120,000 | 6,000 | - | 22,400 | - | 148,400 |
Mr. Antonio Massanell Lavilla | - | 120,000 | 13,000 | - | 56,000 | 8,000 | 197,000 |
Mr. Ignacio Moreno Martínez | - | 120,000 | 15,000 | - | 33,600 | - | 168,600 |
Mr. Javier de Paz Mancho | - | 120,000 | 9,000 | - | 113,600 | - | 242,600 |
Mr. Chang Xiaobing | - | 120,000 | - | - | - | - | 120,000 |
Director | Audit and Control | Nomination, Compensation and Corporate Governance | Regulation | Service Quality and Customer Service | Innovation | Strategy | Institutional Affairs | TOTAL 2014 |
Mr. César Alierta Izuel | - | - | - | - | - | - | - | - |
Mr. Isidro Fainé Casas | - | - | - | - | - | - | - | - |
Mr. José María Abril Pérez | - | - | - | - | 14,200 | - | - | 14,200 |
Mr. Julio Linares López | - | - | - | - | 17,133 | 16,200 | 28,400 | 61,733 |
Mr. José María Álvarez-Pallete López | - | - | - | - | - | - | - | - |
Mr. José Fernando de Almansa Moreno-Barreda | - | - | 15,200 | - | - | 16,200 | 16,200 | 47,600 |
Ms. Eva Castillo Sanz | - | - | - | - | - | - | - | - |
Mr. Carlos Colomer Casellas | 33,400 | 18,200 | - | 12,200 | 27,400 | - | - | 91,200 |
Mr. Peter Erskine | - | 19,200 | - | - | 15,200 | 27,400 | - | 61,800 |
Mr. Santiago Fernández Valbuena | - | - | - | - | - | - | - | - |
Mr. Alfonso Ferrari Herrero | 21,200 | 31,400 | 15,200 | 12,200 | - | 16,200 | 17,200 | 113,400 |
Mr. Luiz Fernando Furlán | - | - | - | - | - | - | - | - |
Mr. Gonzalo Hinojosa Fernández de Angulo | 20,200 | 19,200 | 26,400 | 12,200 | - | 15,200 | 15,200 | 108,400 |
Mr. Pablo Isla Álvarez de Tejera | - | 17,200 | 11,200 | - | - | - | - | 28,400 |
Mr. Antonio Massanell Lavilla | 21,200 | - | - | 23,400 | 12,200 | - | 12,200 | 69,000 |
Mr. Ignacio Moreno Martínez | 22,200 | - | 14,200 | 12,200 | - | - | - | 48,600 |
Mr. Francisco Javier de Paz Mancho | - | - | 14,200 | 12,200 | - | - | 16,200 | 42,600 |
Mr. Chang Xiaobing | - | - | - | - | - | - | - | - |
Amounts in euros | ||||||||||||||||||||||||||||||||||||
Board Members | Audit and Control | Nomination, Compensation and Corporate Governance | Human Resources and Corporate Reputation and Responsibility | Regulation | Service Quality and Customer Service | International Affairs | Innovation | Strategy | TOTAL | |||||||||||||||||||||||||||
Mr. César Alierta Izuel | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Mr. Isidro Fainé Casas | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Mr. Vitalino Manuel Nafría Aznar | 26,500 | - | 16,500 | 21,500 | - | 17,750 | - | - | 82,250 | |||||||||||||||||||||||||||
Mr. Julio Linares López | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||
Mr. José María Abril Pérez | - | - | - | - | - | 20,250 | 15,667 | - | 35,917 | |||||||||||||||||||||||||||
Mr. José Fernando de Almansa Moreno-Barreda | - | - | - | 21,500 | - | 34,250 | - | 25,250 | 81,000 | |||||||||||||||||||||||||||
Mr. José María Álvarez-Pallete López | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Mr. David Arculus | - | - | - | 20,250 | - | 19,000 | - | 39,250 | ||||||||||||||||||||||||||||
Ms. Eva Castillo Sanz | - | - | - | 21,500 | 20,250 | - | - | 25,250 | 67,000 | |||||||||||||||||||||||||||
Mr. Carlos Colomer Casellas | - | 17,750 | - | - | 17,750 | - | 41,750 | - | 77,250 | |||||||||||||||||||||||||||
Mr. Peter Erskine | - | 20,250 | - | - | - | - | 24,000 | 39,250 | 83,500 | |||||||||||||||||||||||||||
Mr. Alfonso Ferrari Herrero | 27,750 | 38,000 | 17,750 | 21,500 | 20,250 | 20,250 | - | 25,250 | 170,750 | |||||||||||||||||||||||||||
Mr. Luiz Fernando Furlán | - | - | - | - | - | 19,000 | - | - | 19,000 | |||||||||||||||||||||||||||
Mr. Gonzalo Hinojosa Fernández de Angulo | 40,500 | 22,750 | 19,000 | - | 20,250 | 20,250 | - | 24,000 | 146,750 | |||||||||||||||||||||||||||
Mr. Pablo Isla Álvarez de Tejera | - | 20,250 | 14,000 | 35,500 | 14,000 | - | 5,833 | - | 89,583 | |||||||||||||||||||||||||||
Mr. Antonio Massanell Lavilla | 25,250 | - | 16,500 | - | 34,250 | - | 26,500 | - | 102,500 | |||||||||||||||||||||||||||
Mr. Francisco Javier de Paz Mancho | - | - | 33,000 | 16,500 | - | 17,750 | - | - | 67,250 | |||||||||||||||||||||||||||
Mr. Chang Xiaobing | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
TOTAL | 120,000 | 119,000 | 116,750 | 158,250 | 126,750 | 168,500 | 113,750 | 139,000 | 1,062,000 |
Director | Wage/ Compensation1 | Attendance fees2 | Short-term variable compensation3 | Other items4 | TOTAL | |||||||||||||||
Executive | ||||||||||||||||||||
Mr. José María Álvarez-Pallete López | 961,709 | -- | 1,140,138 | 57,553 | 2,159,400 | |||||||||||||||
Proprietary | ||||||||||||||||||||
Mr. Vitalino Nafría Aznar | 16,737 | -- | -- | 16,737 | ||||||||||||||||
Independent | ||||||||||||||||||||
Mr. David Arculus | 86,456 | -- | -- | 86,456 | ||||||||||||||||
Ms. Eva Castillo Sanz | 240,847 | -- | -- | 240,847 | ||||||||||||||||
Mr. Alfonso Ferrari Herrero | 297,275 | -- | -- | 297,275 | ||||||||||||||||
Mr. Luiz Fernando Furlán | 299,406 | -- | -- | 299,406 | ||||||||||||||||
Mr. Javier de Paz Mancho | 840,667 | -- | -- | 840,667 | ||||||||||||||||
Other external | ||||||||||||||||||||
Fernando de Almansa Moreno-Barreda | 436,214 | -- | -- | 436,214 | ||||||||||||||||
Mr. Peter Erskine | 86,456 | -- | -- | 86,456 |
Wage / Compen-sation | Fixed payment | Attendance fees3 | Short term variable compen-sation4 | Fixed payments Board | Other items6 | Total |
Mr. César Alierta Izuel | - | - | - | - | - | - | - |
Mr. Isidro Fainé Casas | - | - | - | - | - | - | - |
Mr. José María Abril Pérez | - | - | - | - | - | - | - |
Mr. Julio Linares López | - | - | - | - | - | 200,000 | 200,000 |
Mr. José María Álvarez-Pallete López | - | - | - | - | - | - | - |
Mr. José Fernando de Almansa Moreno-Barreda | - | 162,557 | - | - | - | 120,000 | 282,557 |
Ms. Eva Castillo Sanz | - | 3,876 | - | - | - | - | 3,876 |
Mr. Carlos Colomer Casellas | - | - | - | - | - | 10,000 | 10,000 |
Mr. Peter Erskine | - | - | - | - | - | 151,056 | 151,056 |
Mr. Santiago Fernández Valbuena (*) | 1,177,811 | - | - | 1,318,677 | - | 260,799 | 2,757,287 |
Mr. Alfonso Ferrari Herrero | - | 69,628 | - | - | - | 120,000 | 189,628 |
Mr. Luiz Fernando Furlán | - | 94,455 | - | - | - | 140,000 | 234,455 |
Mr. Gonzalo Hinojosa Fernández de Angulo | - | 21,895 | - | - | - | 60,000 | 81,895 |
Mr. Pablo Isla Álvarez de Tejera | - | - | - | - | - | - | - |
Mr. Antonio Massanell Lavilla | - | - | - | - | - | 10,000 | 10,000 |
Mr. Ignacio Moreno Martínez | - | - | - | - | - | - | - |
Mr. Francisco Javier de Paz Mancho | - | 128,383 | - | - | - | 120,000 | 248,383 |
Mr. Chang Xiaobing | - | - | - | - | - | - | - |
F-104 |
Director (Executive) | Contributions to pension plans | Contribution to the Pension Plan for Senior Executives1 | Compensation in kind2 | ||
Mr. César Alierta Izuel | 8,402 | 1,014,791 | 57,955 | ||
Mr. Julio Linares López | 9,468 | 555,033 | 83,923 | ||
Mr. José María Álvarez-Pallete López | 7,574 | 355,563 | 17,346 |
Director | |
Mr. César Alierta Izuel | |
Mr. José María | 550,436 |
Ms. Eva Castillo Sanz | 393,796 |
Mr. Santiago Fernández Valbuena | 935,010 |
Director | Contributions to Pension Plans | Contributions to Benefits Plan1 |
Mr. César Alierta Izuel | 8,402 | 1,014,791 |
Mr. José María Álvarez-Pallete López | 9,468 | 540,968 |
Ms. Eva Castillo Sanz | 8,402 | 385,394 |
Mr. Santiago Fernández Valbuena | 109,167 | 825,843 |
Director | |
Mr. César Alierta Izuel | |
Mr. José María | 19,935 |
Ms. Eva Castillo Sanz | 9,667 |
Mr. Santiago Fernández Valbuena | 8,050 |
Regarding share-based payment plans (those exclusively for Executive Directors), there were two long-term variable compensation plans in place in 2014: The first Plan is the so-called “Performance & Investment Plan“ (“PIP”), approved at the General Shareholders’ Meeting of May 18, 2011 whose first phase began in 2011 and ended in July 2014, second phase began in 2012 and will end in July 2015, and third phase began in 2013 and will end in July 2016. It is hereby stated that regarding the first phase of this Plan (2011-2014), the general terms for the delivery of shares were not met. Therefore, no shares were delivered to Executive Directors. The FIRST PIP- Second phase / 2012-2015
It is further stated for the record that, as of December 31, 2014, a maximum of 149,787 shares and 162,500 shares had been allocated to Ms. Eva Castillo Sanz for her participation in the Performance & Investment Plan, for the two cycles of 2012-2015 and 2013-2016, respectively, and that, as stated above, in January 2015, she received 862,475 euros (equivalent to the value of shares of Telefónica S.A. that corresponded for her participation in this Plan) in settlement of her participation in the aforementioned plan. The second plan, called as well “Performance & Investment Plan“ (“PIP”), approved at the General Shareholders’ Meeting of May 30, 2014 whose first phase began in 2014 and will end in October 2017, second phase will begin in 2015 and will end in October 2018, and third phase will begin 2016 and will end in October 2019. It is hereby stated that the number of shares assigned and the maximum possible number of shares to be received by the Directors of Telefónica SECOND PIP- First phase / 2014-2017
* Maximum possible number of shares to be received if the co-investment requirement and maximum target TSR are met. In addition, to reinforce Telefónica’ s status as a global employer, with a common remuneration culture throughout the Company, to encourage all Group employees to take an equity interest, and to motivate employees and boost their loyalty, at the Company’s General Shareholders’ Meeting of May 18, 2011, shareholders approved Under this plan, employees that meet the qualifying requirements are offered the possibility of acquiring Telefónica, S.A. shares, for a period of up to 12 months (the acquisition period), with this company assuming the obligation of giving participants a certain number of shares free of charge. The maximum sum each employee can assign to this plan is 1,200 euros, while the minimum is 300 euros. Employees who remain at the Telefónica Group and retain their shares for an additional year after the acquisition period (the consolidation period) will be entitled to receive one free share per share acquired and retained until the end of the consolidation period. The It should be noted that the external Directors do not receive and did not receive in In addition, the Company does not grant and did not grant in Senior executives’ compensation Meanwhile, the In addition, the contributions by the Telefónica Group in The number of shares assigned at the beginning of the phase to the Executives considered Senior Executives of the Company in the second phase (2012-2015) is 294,136 shares and 322,520 shares in the third phase (2013-2016). Regarding the second “Performance and Investment Plan” (“PIP”) composed of three phases (2014-2017; 2015-2018; 2016-2019) approved at the General Shareholders’ Meeting of May 30, 2014, the number of shares assigned at the beginning of the phase to the Executives considered Senior Executives of the Company in the first phase (2014-2017) is 356,624 shares. Finally, regarding the “Global Employee Share Plan” (“GESP”) (2012-2014), the Executives taking part and contributing the maximum (i.e. 100 euros a month, over 12 months), have acquired a total of F-108 Appendix III: Debentures and bonds The detail and key features of outstanding debentures and bonds at December 31, 2014 are as follows (in millions of euros):
F-109
F-110
F-111
The main debentures and bonds issued by the Group in
The detail of the type of financial instruments arranged by the Group (notional amount) by currency and interest rates at December 31,
The table below is an extract of the previous table that shows the sensitivity to interest rates originated by our position on interest rate swaps categorized into instruments entered into for trading purposes and instruments entered into for purposes other than trading at December 31,
Foreign exchange and interest rate options, by maturity,
Cash flows receivable or payable on derivative financial instruments to be settled via the swap of nominals, categorized by currency of collection/payment, along with contractual maturities are as follows:
The main financing transactions
The table below lists the main companies comprising the Telefónica Group at December 31, Included for each company are the company name, corporate purpose, country, functional currency, share capital (in
Telefónica, S.A.
As a digital telecommunications operator, the Telefónica Group is subject to sector-specific telecommunications regulations, general competition law and a variety of other regulations, including privacy and security, which can have a direct and material effect on the Group’s business areas. The extent to which regulations apply to the Telefónica Group depends largely on the nature of our activities in a particular country, with traditional fixed telephony services and fixed broadband usually subject to stricter regulations. In In this section it is described the legislative framework and the recent legislative key developments in the most relevant countries and regions in which the Group has significant interests. Many of the legislative changes and the adoption of regulatory measures by sectorial regulators, which are described in this section, are in the approval process and therefore have not concluded. Electronic Communication Regulation in the European Union The European Union’s legal framework for electronic communications services was developed with the aim of promoting competition and improving the harmonized functioning of the European market for electronic communications networks and services. The European Union’s legal framework was last modified in 2009, in response to market and technological and changes in the industry. Rules promulgated pursuant to the European Union’s Legal framework define user’s rights and focus on access to networks, interconnection, privacy, data security, and protection and preservation of universal access, among other things. Recent EU measures have supplemented the EU framework with regulations focused on relevant markets international roaming, spectrum, next generation fixed networks and call termination rates for fixed and mobile networks. In each Member State a national regulatory authority, or NRAs, is responsible for enforcing national telecommunications laws incorporating the EU framework. NRAs are subject to the supervision of the European Commission, which formally and informally influences their decisions in order to ensure harmonized application of the EU framework throughout the European Union. In particular, the European Commission has identified certain markets (relevant markets) that are susceptible of ex-ante regulation. These markets have to be analyzed by NRAs in order to see whether there are participants with significant market power (SMP). In these instances, NRAs are instructed to impose at least one obligation relating to price control, transparency, non-discrimination, accounting separation or access obligations on market participants with SMP. Companies may challenge the decisions of their national regulatory authorities before their domestic courts. Such legal proceedings may lead to a decision by the European Court of Justice or ECJ, which is the ultimate authority on the correct application of EU legislation. EU competition law The European Union’s competition rules have the force of law in all EU Member States and are, therefore applicable to the Telefónica Group’s operations in those countries. The Treaty of Rome prohibits "concerted practices" and all agreements between entities that may affect trade between Member States and which restrict or are intended to restrict, competition within the internal market. The Treaty also prohibits any abuse of a dominant competitive position within the common market of the EU, or any substantial part of it, that may affect trade between Member States. The EU Merger Regulation requires that all mergers, acquisitions and joint ventures involving participants meeting certain turnover thresholds be submitted to the EU Commission for review, rather than to the national competition authorities. Under the amended EU Merger Regulation, market concentrations will be prohibited if they significantly impede effective competition in the EU common market. The European Commission and the office of the European Competition Commissioner are granted the authority to apply the EU competition framework. Similar competition rules are set forth in each EU Member State, with the corresponding national competition authorities overseeing compliance with these regulations. All the European countries in which the Telefónica Group operates and referred to below are Member States of the European Union. Recent developments Currently, the regulatory debate in the European Union is focused on the completion of the European Digital Single Market with a special attention on the harmonization of regulatory This effort was started by the European Commission’s September 2013 adoption of the “Connected Continent” Regulation proposal package, which covers the above-mentioned issues and is under discussion. The outcome of this process is still uncertain. Of special importance to Also, as part of this effort, the European Commission adopted, in 2013, a new Recommendation intended to create a more favorable environment in Europe for fiber investment. This Recommendation provides more pricing flexibility for fiber at wholesale (by departing from the cost-orientation pricing), at the expense of stricter measures on the replicability of fiber based access services. In addition, the Commission is now bound to ensure copper price stability (around 9 euros on average for ULL on real terms). Additionally, EU legislator approved in 2014 a regulation that includes measures to reduce the cost of NGA roll-outs including sharing of ducts from utilities and smother permitting processes. These proposals have to be approved by the EU legislator in 2015. Also, during 2013, the European Union adopted its cyber security strategy, comprising a number of measures, among which is a new proposed Directive on Network and Information Security. The intention is to guarantee a reliable and trusted Information Society across the EU, where Internet providers are also subject to security requirements. This Directive is expected to be finally adopted in the EU during 2015. Again at this stage, the outcome is largely uncertain. In January 2012, the European Commission proposed to replace Directive 95/46/EC on the protection of personal data by a General Data Protection Regulation that would apply to those providers who processes personal data of European citizens. The draft Regulation has been approved by the Committee on Civil Liberties, Justice and Home Affairs of the European Parliament (LIBE) in October 2013, prior to a vote in the European Parliament. The approval of that Regulation will have an impact on Telefónica’s privacy obligations related to its activities as a telecommunications operator and as a provider of digital services. The Regulation aims to provide European citizens with a high level of protection of their privacy, and it will affect the ability and methods to process and use the personal data of its customers. The outcome of this debate is currently uncertain. The European Union is also discussing a future Directive for Payment Services that might have influence on the type of financial obligations that could affect to services provided by companies such as Telefónica, in the area of premium rate services or mobile wallets. In June 2012, the Commission approved the International Roaming Regulation (Roaming III), which replaces previous Roaming regulations (Roaming I and II). This Roaming III Regulation contains, for the first time, structural measures to impulse competition in the market for international roaming, so that, from July 1, 2014, customers could, if they wish, sign a roaming agreement with another operator apart from their domestic mobile services without changing the phone number, terminal or SIM card to change countries. The proposal also would entitle mobile operators to use other operators’ networks in other Member States at regulated wholesale prices, thereby encouraging more operators to compete on the roaming market. To cover the period until such structural measures are fully effective and competition pushes prices down, the proposal gradually reduces the limits of retail and wholesale prices for voice, text (SMS) and data. The price cuts have been implemented by operators on July 1, 2014.
This regulation may, however, change again depending on the outcome of the Legislative process related to the Digital Single Market package. The EU Parliament has proposed that roaming prices are around home prices (“Roam like at home” proposal). On February 14, 2012 the European Parliament and the Council adopted Decision 243/2012/EU which settles a multiannual program policy spectrum for the following four years. The Radio Spectrum Policy Program, amongst others, will identify 1200MHz spectrum for wireless data traffic, explore new approaches in spectrum licensing, identify long term spectrum needs and finally will look for additional harmonized bands for mobile broadband. Finally, in its Digital Agenda, the EU has set some objectives for broadband development: of the speed up to 30 Mbps for all European citizens by 2020 and 50% of European households connected to 100Mbps by 2020. Spain General regulatory framework The legal framework for the regulation of the telecommunications sector in Spain is governed by the Telecommunications Law (9/2014) of May 9. The bill reduces administrative burdens to boost networks deployments, as well as the adoption of complementary measures for boosting investment in telecommunications sector. The Market and Competition National Commission, or CNMC, created by the Law 3/2013, assumed in 2013 its role as telecommunications and audiovisual service regulator in Spain. This new organism is also the competition authority in Spain and the national regulatory authority for transport, postal services and energy. Licenses The main licenses and concessions to use spectrum are shown in the table at the end of this Annex. Market analysis Following, obligations imposed by the national regulator in the most relevant markets -in which Telefónica is deemed to have SMP are detailed. Fixed markets Retail access to the fixed-location public telephone network, retail market for calls in a fixed location and retail market for rental lines In this market, the National regulatory authority had made a third round of market analysis, applying a final resolution dated on December 13, 2012, concluding that Telefónica de España is an SMP in retail access to fixed-location public telephone network services, for clients with an identification number not associated to a specific business plan, such as a reference market which can be regulated ex ante. As an operator with SMP, Telefónica de España is subject to certain specific obligations and restrictions. Wholesale fixed call origination market In December 2008, the National regulatory authority concluded that Telefónica de España is an operator with SMP in this market and requested that Telefónica de España offer wholesale service to assist other operators in offering IP telephony services and provide information of migration to Next Generation Networks. Fixed call termination market on individual networks In October 2014, the CNMC carried out a market analysis in terminated fixed networks, and concluded that every single provider, including Telefónica de España, are dominants in terminating fixed networks and, as a consequence, are obliged to provide the terminating service applying cost-orientation and non-discrimination obligations to the rest of operators, according to a purely incremental costs model. Subsequently, the CNMC reduces the terminating fixed network tariff by 85%, on average. Noticeably, this decision implied the overcome of interconnection asymmetry (terminating fixed networks prices of alternative operators to Telefónica previously were 30% higher than the prices of Telefónica). Finally in fixed call termination market on IP networks, Telefónica de España is required to submit an “Interconnection Reference Offer” (OIR). Mobile market Mobile voice call termination In May 2012, the ANR adopted a measure establishing the wholesale price at 0.0109 €/minute, as from July 2013. The CNMC has not yet approved a new analysis on wholesale market mobile voice call termination. Wholesale (physical) to network infrastructure access In January 2009, the National regulatory authority concluded that Telefónica de España is an operator with SMP in the wholesale (physical) network infrastructures access market, and imposed the following obligations: access to full and shared unbundled access to copper loops, sub-loops and ducts, cost oriented tariffs and accounting separation, transparency and non-discrimination obligations including an Unbundling Reference Offer and a Ducts Reference Offer. In December 2014, CNMC has conducted a public consultation exercise and propose a new action plan based on market analysis, with a view to proposing the maintenance previous agreements and obligations, imposing on Telefónica de España the obligation on virtual unbundled access to fiber adopting pricing rules that makes possible the economic replicability of its retails offerings, strengthening local access networks. This proposal may be modified, in the final decision, which is expected for the last quarter of 2015. Wholesale prices for local loop unbundling were increased from 8.32 to 8.60 €/month by the National regulatory authority, in July 2013. Wholesale broadband access In January 2009, the CNMC concluded that Telefónica de España has significant market power in the wholesale broadband access market and is therefore required to provide other operators with wholesale broadband access services up to 30 Mbps in copper and fiber infrastructures. The NRA also required Telefónica de España to publish a wholesale broadband access reference offer, provide cost-oriented rates and accounting separation, to avoid discrimination in network access and to report broadband retail changes in services prior to offering them in the market. On November 16, 2010, the National regulatory authority approved a new wholesale broadband offer (known as the new broadband Ethernet service or NEBA) which will allow alternative operators to provide retail services more independently from Telefónica retail offers up to 30Mbps. In May 2013, the National regulatory authority proposed a reduction in wholesale broadband prices, although the European Commission considered the proposal incompatible with European law, due to the methodology used to determine the prices. Taking into account the European Commission’s comments, the CNMC has adopted a decision on January 30, 2014, reducing the prices 18%. In December 2014, CNMC has carried out a consultation about a new proposal of market analysis that eliminates the 30Mbps limit and incorporates the need of applying different regulation on a geographical basis for the residential clients segment, so that Telefónica will no longer be obliged to offer wholesale broadband services access (bitstream) in that areas of greater competition. In that sense, Telefónica de España will be only obliged to offer its wholesalebroadband access services (bitstream) for the residential segment, in no-competitive areas. In this case, the wholesale service offered over the telephone copper network would have cost-oriented prices, unlike the fiber network service offered, which is subject only to the fulfilment of economic replicability criterion. For the business segment, the consultation proposes to oblige Telefónica de España to offer its wholesale broadband access services throughout the national territory. This proposal may be modified, in the final decision, which is expected for the last quarter of 2015. Universal service obligations According to the General Telecommunications Law, Universal service is set of defined services whose aims are to ensure that all Spanish citizens have access to certain basic telecommunications services, regardless of their geographic location, with a minimum quality level and at accessible prices. Telefónica de España was designated the operator responsible for the provision of the connection to the public electronic Contribution to RTVE funding mechanism In August 2009, the Radio and Television Corporation Finance Law “(Ley de Financiación de la Corporación de Radio y Television Española)” was approved establishing that: (i) telecommunication operators, which operate nationwide or at least in more than one region, have to make a fixed annual provision of 0.9% of the invoiced operating income of the year (excluding the revenues of the wholesale reference market) and, (ii) on the other hand, the concessionaire companies and providers of TV services In Spain, self-settlement of the contributions made has been appealed by Telefónica España and Telefónica Móviles España as well as, the Royal Decree 1004/2010, which approves the Regulation developing the abovementioned law. In the European level there were two ongoing processes with regards to this issue. In July 2013, the EC withdrew its appeal before the Luxembourg Court, shortly after it ruled on similar tax legislation in France, where the Luxembourg Court ruled that the tax imposed by France on telecommunications companies was compatible with European regulation. With this decision, the tax measure will remain unchanged unless the Spanish Collaboration agreements In July 2013, Telefónica de España signed an agreement with Vodafone España S.A.U and France Telecom S.A.U for the use of fiber infrastructure in buildings. This agreement, together with the agreement signed with Jazz Telecom S.A.U in 2012, aimed the deployment of fiber networks in Spain. Once, an operator has reached a concrete building would be able to use the infrastructures deployed previously by other operators. Under CNMC Resolution of June 18, 2014, Infrastructure Sharing Agreement between Telefónica de España, Vodafone España and France Telecom shall have the same prices structure that was agreed before between Telefónica de España and Jazz Telecom, solving in this manner the dispute between Vodafone España and France Telecom. United Kingdom General regulatory framework The EU Regulatory Framework was implemented in the United Kingdom by the Communications Act in 2003. The Act designates the Office of Communications or Ofcom, as the NRA responsible for the regulation of electronic communications networks and services. The Office of Communications, or Ofcom, is designated as the NRA responsible for the regulation of electronic communications networks and services. Market reviews Following a market review, mobile termination rates for the four national mobile communications operators (Vodafone, Telefónica United Kingdom, EE and H3G) are subject to controls based on the pure long-run incremental cost (pure LRIC) approach. The present mobile wholesale termination rate is 0.845ppm. Ofcom proposes to reduce that to 0.545ppm from April 1, 2015. Licenses The main licenses and concessions to use spectrum are shown in the table at the end of this Annex. Following a direction from the Government, Ofcom has also proposed to raise the annual license fee for the use of spectrum The European Union legislative framework was implemented in Germany at the end of June 2004, by the approval of Telecommunications Act (Telekommunikationsgesetz). The national regulatory authority responsible for regulation of electronic communication networks and services is the Bundesnetzagentur, or BNetzA. Following the adaptation of the 2009 EU Telecom Package, the Telecom Act was repeatedly amended and the last modifications entered into force in August 2013. Transition periods existed for some of them. Worth mentioning are the rules, concerning the free-of-charge-waiting-loop and some of the rules concerning the change of the provider. Acquisition of E-Plus On August 29, 2014, the European Commision granted the final authorization for the acquisition of E-Plus. In the course of the merger clearance process, Telefónica Licenses The main licenses and concessions to use spectrum are shown in the table at the end of this Annex. On January 29, 2015, the BNetzA published respective final decisions on the spectrum allocation proceedings and on the auction conditions of the bands 700 MHz and 1500 MHz. The auction will also include the spectrum corresponding to GSM In Market reviews Mobile termination rates (MTR) Since 2006, Telefónica Deutschland has subsequently challenged decisions adopted by BNetzA on mobile termination rates. Some appeals are pending at the Constitutional Court. BNetzA bases some of its calculations on benchmarks, others in its new internally-developed cost model, while the On September On August 13, 2013 BNetzA issued the final resolution on Telekom’s fixed termination rates (FTRs), applicable from December 2012 to November 2013. Local FTRs were reduced by approximately 20%. At the end of November 2013 BNetzA issued a regulatory order for all alternative fixed network operators (ANOs) including Telefónica Deutschland. In addition to the obligations of the former regulatory order, the ANOs have to file a proposal for their local FTRs and BNetzA has to approve such FTRs. The local FTR will be set at the same level as the Telekom FTR. BNetzA issued a preliminary approval for Telefónica Deutschland´s FTR at the end of February 2014. Telefónica Deutschland’s rates were approved for the time period from November 20, 2013 until November 30, 2014. Also in these decisions, BNetzA has based its calculations on an approach which takes account of common costs, disregarding the “Pure LRIC” approach which is recommended by the EU Commission and which does not take account of such common costs. In its latest proposal to further reduce FTR, BNetzA has preliminary set Telekom FTR at 0.0024 euro/minute from December 1, 2014 until November 30, 2016. The proposal has been notified to the EU Commission and is currently subject to a “Phase II” in-depth investigation. Relevant cooperation agreements Since On November 5, 2014, the Federal Cartel Office adopted a decision where concluded that there were no grounds for action. In the proceeding for the regulatory clearance of the cooperation the Federal Network Agency (Bundesnetzagentur) published a draft decision on December 17, 2013 by which the proceeding shall be terminated without any remedies. The draft decision was publicly consulted in Brazil General legislative framework The delivery of telecommunications services in Brazil is subject to regulation under the regulatory framework provided in the General Telecommunications Law enacted in July 1997. The National Agency for Telecommunications, (Agência Nacional de Telecomunicações or ANATEL), is the principal regulatory authority for the Brazilian telecommunications sector. Licenses The main licenses and concessions to use spectrum are shown in the table at the end of this Annex. In Brazil, concessions are awarded for providing services under the public system, In the state of São Paulo, Telefónica On June 30, 2011, the company reviewed its concession agreement and entered into new contracts for local and long distance services, with new conditions imposed on the company, amongst them, to change the basis of calculation of the biannual concession fees. Every two years, during the agreement’s new 20-year period, fixed line concession companies will have to pay a renewal fee which will correspond to 2% of the revenue of the previous year. The first payment of this biennial fee occurred on April 30, 2007, based on 2006 revenue, the second payment occurred on April 30, 2009, based on 2008 revenue, the third payment occurred on April 30, 2011, based on 2009 revenue and the fourth payment occurred on April 30, 2013, based on 2012 revenue. The next payment is scheduled for 2015 based on 2014 revenue. Brazilian Government also published Decree No. 7512 related to the General Plan for the Universalization (PGMU III). It sets new targets for Telefone de Uso Público (public pay phones) density in rural and poor areas and goals related to popular fixed line service (AICE). There were two Public Consultations undergoing, the Public Consultation No. 26 aimed to revise the fixed line concession agreement and Public Consultation No. 25 aimed to revise the General Universalization Commitment Plan, which were launched by ANATEL on June 27, 2014. Definitive rules regarding this issue will be published in 2015. In the remaining states of Brazil, Vivo Telefónica Radiofrequencies authorizations, for its turn, are granted for a limited period of time (maximum of 15 years, renewable once). The most important radiofrequencies authorizations held by Telefónica are those associated with the exploitation of mobile services and are described in the licenses section. In In relation to the acquisition of GVT as described in Note 21 of these Consolidated Financial Statements, according to Brazilian law, the transaction must be approved by Brazilian regulators ANATEL and CADE. On December 22, 2014, ANATEL approved the transaction and imposed certain obligations to Telefónica Telefónica understands that the obligations imposed do not compromise the terms of the GVT acquisition or its value. Interconnection, tariffs and prices Interconnection among public networks is mandatory in Brazil. Parties can freely negotiate the terms and conditions about technical points, economic discounts and rights/obligations, of the interconnection agreements. For Interconnection rates for fixed network operator identified as operator with Significant Market Power (Res. 588/2012) the rate is homologated by ANATEL; the rates for the use of mobile operators networks (Res. 438/2006), may be agreed between the parties. However, if the parties fail to reach a consensus, particularly regarding charges to fixed operators (Res. 576/2011) ANATEL imposes the rates to be used. In general, operators shall maintain public offers of interconnection conditions. On November 8, 2012, ANATEL published the General Plan of Competition Goals (PGMC), which, in general, provides ex-ante obligations for telecommunications providers that identify SMP operators in the various relevant markets identified as critical for the development of competition in the telecommunications industry. The ex-ante obligations include measures of price transparency and market conditions and specific rules for composition of conflicts between agents, such as: (i) mandatory submission and approval of offerings of reference in the wholesale market and warranty service requests from other players that correspond to 20% of the physical network of the SMP companies, (ii) transparency measures as the creation of a Data Base and Wholesale Supervisor Entity, (iii) specifically for providers acting in the mobile termination market (interconnection): full billing between undertakings with SMP, and Bill & Keep decreasing between SMP and non-SMP (80/20% between 2013 and 2014, 60/40% in 2015 and full billing from 2016). The Telefónica Group, including VIVO, has been identified as an operator with SPM in the following markets: (i) fixed network infrastructure access for data transmission in copper pairs or coaxial cables at speeds up to 10 Mbps in the region of São Paulo,
In this regard, ANATEL published its ACT 7272 and 7310, in August 2014 establishing the new VU-M values for 2014 and 2015 applicable to providers with SMP. These are the values applicable to VIVO (in Brazilian reais):
Pursuant to applicable laws, reductions of VU-M must be reflected in VC1 (retail price paid by users for local fixed-mobile calls) and VC2 and VC3 (retail price paid by users for national long distance fixed-mobile calls). Accordingly and as a consequence of the new V-UM in Act 7272 and 7310, on February 24, 2014, ANATEL published its Act 1742 establishing the new VCs for 2014: approximately 0.07388 Brazilian reais less than the previous VC1s in Region III (as Telefónica only offers local fix telephony services in that region); and approximately 0.10901 Brazilian reais less than the previous VC2 and VC3. The amounts of the VC here mentioned are net of tax. In December 2013, ANATEL issued Resolution No. 629 which establishes terms and conditions to execute Conduct Adjustment Terms (Termo de Ajustamento de Condutas) aimed at suspending administrative proceedings in course, if license holders assume certain obligations to fully comply with regulations and provide compensations and awards to users. On March 7, 2014, ANATEL issued the Resolution No. 632 which approved the Regulation of Users Rights of Telecommunications Services, which improves transparency in consumer relations and expands the rights of those who use fixed and mobile telephony, broadband and Pay-TV. This Resolution No. 632 has among other novelties, simplified the cancellation of a telecommunications service, granted more transparency on the services offered and simplified the way to contest the invoices. The deadline to submit comments to ANATEL’s Public Consultation No. 47/2014 aimed to modify the General Plan of Competition Targets – PGMC, approved by the Resolution No. 600, of November 8, 2012, ended last January 2, 2015. The Proposal for amendment of Art.42 of Appendix I of the PGMC is aimed to maintenance of the bill and keep system. Competition law Brazilian competition regulation is based on Law No. 12529 of November 30, 2011. The Administrative Council for Economic Defense, or CADE, is the agency in charge of enforcing the competition rules. The new antitrust law establishes a pre-merger notification regime for concentration transactions, with new turnover thresholds (one participant with gross revenue of BLR750 million in Brazil and other participant with gross revenue of BRL75 million in Brazil) and maximum time length for merger review procedure (240 days, extendable to 330 days). Resolution No. 10, of October 29, 2014 (in force as of January 4), established some additional interpretation about the filling triggers provided in the Law in what regards vertical and horizontal “partnerships agreements” subject to antitrust clearance. Mexico General regulatory framework In Mexico, the provision of all telecommunication services is governed by the Constitution, Federal Telecommunication and Broadcasting Law was published on July 14, 2014 and came into force 30 naturaldays of its publication.The Constitution was amended in June 2013 on telecommunications matters; the Federal Telecommunications Institute (IFT) is created as an autonomous body responsible for the regulation, promotion and supervision of the use, development and exploitation of radio spectrum, networks and the provision of broadcasting services and telecommunications. By virtue of the Constitution amendment, the Federal Communication Institute will be in charge of regulating the dominant operators or with SMP. IFT as the Mexican national authority in communications and broadcasting sector, is the organ responsible for regulating those operators which have SMP in communications and broadcasting markets, after the abovementioned constitutional amendments. As a result of the above mentioned constitutional reforms, IFT has declared the “América Móvil Group” a preponderant operator in the telecommunications market and as a result of that, it introduced, among other, special regulations on asymmetric interconnection rates. Licenses Derived from a corporate restructuring carried out in Mexico, authorized by the Federal Institute for Telecommunications, dated on December 19, 2013 Baja Celular Mexicana, S.A. de C.V.; Celular de Telefonía, S.A. de C.V.; Telefónica Celular del Norte, S.A. de C.V. and Movitel del Noroeste, S.A. de C.V. have ceded in favor of Pegaso PCS, S.A. de C.V. (Pegaso PCS) the rights and obligations of the concession titles. Likewise, on January 31, 2014 the merger between Pegaso Comunicaciones y Sistemas, S.A. de C.V. and Pegaso PCS was formalized, surviving the latter. Once the merger takes effect, Pegaso PCS will acquire the ownership of the rights and obligations of the concession titles of Pegasus Communications and Sistemas. The main licenses and concessions to use spectrum are shown in the table at the end of this Annex. Additionally, other concessions are held in México. Two of those licenses are hold, in order to install, operate and explore two public communication networks, being Pegaso PCS the concessionaire (July 28, 2010, and July 23, 2008). The Secretary of Communications and Transports (SCT) also granted the following licenses to Grupo de Telecomunicaciones Mexicanas (which is invested by Telefónica) (GTM): concessions to install, operate and explore a long distance public communication network, local and international (July 6, 2003); Modification the concession to provide fixed and public telephone services throughout the country (March 28, 2006); concession in order to provide DTH services (January 19, 2011) and the rights for transmission of communication by signals associated with satellites; in Ka Band (August 6, 2012); and, finally, a concession in order to exploit broadcasting and reception rights, by signal associated with two foreign satellites -WILDBLUE 1 and ANIK F2- (August 6, 2012). Prices and tariffs Tariffs charged to customers are not regulated. They are set by mobile operating companies and must be registered with IFT, in order to be enforced. Since January 1, 2015, no charge can be made for national long distance services. Interconnection Mexican telecommunications regulations obligate all telecommunications network concessionaires to execute interconnection agreements. However, should the parties fail to agree, IFT must fix the unresolved issues, including tariffs. Throughout 2011, the extinct COFETEL issued several resolutions as a result of different interconnection disputes submitted by several operators. In such resolutions, COFETEL determined a mobile termination charge (“MTC”) for Telefónica México, as well as for other mobile operators, leading to a 61 % cut to previous rates. Telefónica México has appealed on an administrative basis such resolutions from COFETEL, and such appeals are still pending to be resolved. Recently, IFT determined the mobile termination rates for 2012 and Telefónica México filed an injunction against this rate. Once these trials have been concluded, the rates applied may be further reduced retroactively, IFT has not approved yet the termination rates for 2013, 2014 and 2015 for Telefónica Mexico. Moreover, the declaration of the Preponderant Economic Agent in the telecoms market is expected to lead to asymmetric regulatory measures. Thus, in August 2014, the Preponderant was obligated not to charge for terminating calls on its network, i.e. it was imposed the rate of $ 0.00 for the termination service. On December 29, 2014, the IFT published the rates that will be used to resolve interconnection disputes between concessionaires. On the other hand, with regard to the Preponderant economic agent, the IFT published rates relating to origination and transit services. The Company’s competitive position may benefit to a greater or lesser extent depending on the scope of these measures. Furthermore, on June 21, 2012, CIADI Secretary-General declared admissible the international arbitration presented by Telefónica, S.A. against Mexican United States. Telefónica, S.A. formulated their lawsuit memorial, on September 20, 2013, by virtue of which claim for damages incurred as a consequence of the resolutions, issued by different Mexican regulatory and administrative bodies, of mobile termination rates. Mexican United States answered on February 28, 2014. Foreign ownership/restrictions on transfer of ownership Since the amendments to the Constitution published in June 2013 foreign investment (FDI) up to one hundred percent in telecommunications is allowed. Competition law The new Federal Law of Economic Competition was published in the Official Gazette on May 23, 2014. The IFT must issue the “Regulatory Provisions of the Federal Law of Economic Competition for telecommunications and broadcasting. Venezuela Licenses The main licenses and concessions to use spectrum are shown in the table at the end of this Annex. The band spectrum in 2500-2690 MHz and 1710-2170 MHz, for LTE (Long Term Evolution) mobile services was awarded. The expiration of this license will take place on December 15, 2029, and on November 28, 2022, respectively. The respective bandwidth spectrum concession contracts were signed, one for band AWS 10+10 MHz, and the other for two bands in the 2600 MHz bandwidth. It is worth mentioning that not only did Telefónica obtain the permission to use the 4G spectrum, but it also got an expiration date extension of the general habilitation from 2025 to 2029. Prices and rates In accordance with the last reform of the Organic Law of Telecommunications (2011), the system for fixing the prices for telecommunication services remains the same, consisting of simply notifying them to CONATEL, except for fees for basic telephony services (local, national and international long distance) and those for services provided under universal obligations that are established by the government. However, the regulatory entity may, considering CONATEL’s opinion, fix the prices for any telecommunication services for “public interest reasons”. The amendment does not define the term "public interest reasons". In the framework of the Enabling Act in force in Venezuela until November 2014, in January 2014 an Organic Law on Fair Prices was published, limiting to natural and legal persons of public and private law, nationals or foreigners, who develop economic activities in Venezuela, the profit margin of the sales prices of goods and services set to a maximum of 30% of its operating costs. This Fair Prices Act was amended on November 19, 2014, unchanged, however, the ends referred to above. CONATEL published an Administrative Order under which values are set for the Determination of Interconnection Fees for use of Mobile Telephony Services. The objective of this regulation is to establish a reference for values and a criteria to determine interconnection fees in mobile phone use on the basis of a model of long run incremental costs with breakdown of the network elements by CONATEL, who should intervene setting such fees solely in those cases where there are conflicts between operators relating to such fees, and consensus is not reached within the period specified in the interconnection legislation. Mobile termination rates in relation to national operator have been reduced approximately 6% compared to the previous rates. Likewise, on August 6, 2014, a new providence was published, with which new standards for the provision of services for international long distance telephony and fees applicable for delivering calls to networks fixed and mobile telephony in Venezuela were set. With this regulation, they aim to establish the fees that an operator providing the international long distance services should pay for calls originating in a foreign network and delivered on networks, either fixed or mobile, in Venezuela when the subscriber originating the call is not directly served on his network. Competition law The Antimonopoly Law Decree published on November 18,2014, reformed the "Law for the Promotion and Protection of Free Competition” of 1992, now including principles of Justice and Democratization as well as the promotion and protection of public enterprises, associative forms of state and communal, as provided in the “Plan de la Patria” (plan of the country). Some changes to highlight are the modification of the basis for calculating penalties which now must be calculated on the value of the annual gross income of the offender. Chile General regulatory framework The General Telecommunications Law No. 18168 of 1982, as amended, establishes the legal framework for the provision of telecommunications services in Chile. The main regulatory authority in Chile is the Under-Secretary of Telecommunications, or SUBTEL. An emergency alert system was enabled for mobile networks (2G, 3G) to inform the population in cases of disaster. The system using 4G technology will be implemented in March 2014. On February 13, 2014, the new Regulation on Telecommunications Services, which will come into force on June 14, 2014, except certain specific obligations that must be met by the service providers prior to that date, was published. This Regulation replaces the existing to date and regulate a number of new services as Internet, Pay TV, etc. In May 2014 law No. 20750 that allows the introduction of DTT was published in the Official Journal. The main provisions set an extensible deadline of 5 years for the blackout analog; it sets that the concessions of free-to-air broadcasting could be nationwide, regional, local and European coverage; it also sets the entering of “Granted Retransmission” when the requirements of digital coverage for the 85% of the total population in service area and “must carry” of, at less 4 regional channels (whenever is technologically feasible, and the service area remains equal) is fulfilled. Football matches of Chile National Soccer Team will be broadcast by free-to-air channels. On July 26, 2014, SUBTEL published in Official Journal the call for a public consultation referred to the Digital Broadcasting TV Plan. They present the decree that approves the plan was forwarded to the “Contraloría General de la República” for its discussion. Different organizations that grouped cable and TV operators have appealed against the “Contraloría General de la República”. Moreover, the Congress of Chile approved a draft project that forbids contracts granting exclusivity in the use of pipelines and internals installations needed for the provision of telecommunications facilities for the buildings and condominiums. Additionally, the project regulates the use of the facilities that connect with the internal network and provide access for buildings. Licenses The main licenses and concessions to use spectrum are shown in the table at the end of this Annex. Additionally, Telefónica Chile has been granted licenses of public local phone services and Voice Over Internet Protocol services. Telefónica Empresas Chile has a license for providing TV Services. Telefónica Larga Distancia holds long distance concessions and to install and operate the national fiber optic network. In November 2013, TMCH initiated the partial commercialization of 4G services, and in March 2014 the total of the commercialization will have to be implemented. 2.6 GHz concession obliges TMCH to provide a wholesale service to Mobile Virtual Operators, for what the latter had to published a completely Facilities Offer (including prices), available in non-discriminatory terms. In March 2014, it was published in the Official Journal the Exempt Resolution No. 758/2014 of the Department of Telecommunications, which assigns to TMCH a service concession for transmitting data on 713-748 MHz and 768-803 MHz frequency bands. TMCH has awarded a block of frequencies at a national level of 2x10 MHz through a bidding procedure, with an approximated cost of 5,780,000 U.S. dollars. In addition of providing the data transmission service, additional obligations are set, like provide wholesale services to OMV, provide national roaming wholesale services, provide data transmission wholesale service, provide services to determined routes, locations and municipal and supported schools. Prices and tariffs Public Telecommunication Services Prices and prices for Intermediate Telecommunication Services are freely established by operators, unless there is an express resolution by Chile´s Competition Court on existing conditions in the market that confirms that there is not enough for granting a free prices regime. In January, 2009, by No. 2 Report, Chile´s Competition Court (from this moment onwards the TDLC), decreed free tariffs for the “Fixed Phone Service”, “Local Measured Service”, “Charges for Connection Service” and “Public Telephony Service”. Nevertheless, it did not change, for all fixed phone companies, the currently prices of local loop services, and minor provisions for phone services, including: closure of the line and line restoration, release of access for national long-distance service, international services, complementary services, detailed SLM service and free visit and diagnosis, between others. Furthermore, tariff regulation remained at the same terms for unbundled network services for all fixed service companies. Additionally, maximum prices for interconnection services (access charges for network use, mainly) are subject to tariff regulation for all operators, being set by stipulated procedures. Under national Telecommunication Law, the structure, level and indexing of maximum tariffs that can be charged are set by a Supreme Decree issued by Transports, Economy, Development and Tourism Ministry (hereinafter, “The Ministries”). The Ministries set maximum tariffs under efficient operator model basis. Maximum tariffs for telephony services are set every five years by the Ministry of Transport and Telecommunications and the Ministry of Economy. Interconnection Interconnection is obligatory for all license holders with the same type of public telecommunications services and between telephony public services and intermediate services that provide long distance services. The same requirement applies to holders of those intermediate service licenses, who are required to interconnect their networks to the local telephone network. A “calling party pays” tariff structure was implemented on February 23, 1999. Under this tariff structure, local telephone companies pay mobile telephone companies an access charge for calls placed from fixed networks to mobile networks. Local telephone companies may pass this interconnection charge on to their customers. Every five years, SUBTEL sets the applicable tariffs for services provided through the interconnected networks. The Tariff Decree for the period 2014-2019, for mobile telephony networks was approved by the Ministries on January 16, 2014 and is enforceable since January 25, 2014. The new prices imply a reduction of 76.4% as regards the previous ones. The Tariff Decree that will be implemented during the next five year period 2014-2019, was adopted by SUBTEL on May 5, 2014, and will enter into force, involving a retroactive effect, from May 8, 2014. New tariffs imply a preliminary reduction of 37% from the previous. Nowadays, the Tariff Decree is under review by “Contraloría General de la Republica”. Competition law The principal regulation concerning competition in Chile is Decree No. 211 of 1973, whose current text was established in Law Decree Nº 1 of 2005 (Ministry of Economía, Fomento y Reconstrucción). The Competition Tribunal deals with infringements of competition law. Through General Instruction No. 2 (“IG2”) of December 18, 2012, the Competition Tribunal imposed that mobile phone companies cannot commercialize plans with a different price for the on-net and off-net calls, as of the effective date of the mobile Tariff Decree over access charges (on January 25, 2014). In addition, fixed and mobile service packages with discounts are authorized as of the in-service date of the LTE concession (on March 28, 2014). The TuVes Company, which provides Pay TV services, brought an appeal against IG2 before the Supreme Court, which issued a judgment on December 17, 2013 by virtue of which fixed-mobile convergent offers with a multiservice discount cannot be commercialized permanently. This affected our commercial offer focused on convergent products (Fusion and others), and as a result, possible commercial and operational solutions are being analyzed. Argentina General regulatory framework The basic legal framework for the provision of telecommunications services in Argentina is set forth in the National Telecommunications Law (No. 19798) of 1972 and in the specific regulations governing each type of telecommunications service, which has been modified by Law “Argentina Digital” No. 27078. This new legal framework, issued on January 7, 2015, (the new telecommunications law 'Argentina Digital') entered into force on January 7, 2015, and will regulate information and communication technology (ICT) as Public interest services, replaces the previous telecoms law of 1972, creates a new NRA, sets net neutrality provisions and allows telecommunications licensees to provide (non-satellite) broadcasting services (previously banned by the Media Law), and set a new license system. The following regulatory authorities oversee the Argentine telecommunications industry:
Telefónica Móviles Prices and tariffs Additionally, the “Argentina Digital” legal framework establish that providers of telephone services Also, the guidelines set forth in article 26 of Decree No. 1185/90 continue in effect for operators with significant market power. These guidelines establish information obligations with which operators must comply with respect to tariffs and On the other hand, on October 15, 2012, came into force the resolution SC 45/2012 of Tariffs charged to customers for mobile services are currently not regulated in Argentina. Interconnection The Colombia General regulatory framework In Licenses The main licenses and concessions to use spectrum are shown in the table at the end of this Annex. Additionally, Colombia Telecomunicaciones subjected itself to the General Entitled Regime of approval that is set out in law No. 1341 2009, on November 8, 2011, which allows Colombia Telecomunicaciones to continue providing the network and communications services, like added-value services, carrier national services and mobile services, amongst others.In relation to mobile services, the company Regarding the licenses for the provision of mobile voice services awarded in 1994, and their amendment agreements, by virtue of which allow the usage of spectrum over 850 MHz (25 MHz) and 1900 MHz (15 MHZ) bands, given for a 10 years period and extended in 2004 for another equal period, the company decided to opt to the general habilitation regime, modifying registry before the ITC Ministry and requesting the renewal of the permits for the use of spectrum according to the article 68 of law No. 1341 of 2009, and the Decree No. 2044 of 2013, in which it has been determined the requirements and formalities in order to be able to obtain the renewal and some criteria for establish the renewal conditions. Resolution No. 597 of March 27, 2014 set the conditions the usage of spectrum over 850 and 1900 MHz renewal. Regarding the reversion of assets the Company and the Colombian Government had been acting within the contractual relationship, in the understanding that such reversion only applies to the scarce resource that was assigned (the spectrum), on the basis of with the legal framework issued by the national Congress, integrated by laws 422 of 1998 and 1341 of 2009. Notwithstanding, the Constitutional Court declared possible in a conditional way article 4 of the No. 422 /1998 Law and article 68 of No. 1341/2009 Law, related to the reversion of assets by Sentence C-555 of 2013, to interpret that concessional contracts subscribed before the entry into force of these legislation, shall respect “the reversion” clause 33 concluded “at the expiration of the concession term, the elements and assets directly affected by it will become National property, without imposing any compensation obligation”. Constitutional Court Ruling C-555 was issued in February 2014. According to Court´s Opinion, in case of application, reversion includes wireless telecommunications spectrum band, as well as other assets and network related to the rendering of the service as laid down in sections 14 and 15 of Decree No. 1900 of 1990; or, if such reversion is not possible, its economic equivalence. Upon termination of the Agreements, and during the liquidation of the respective contracts, the Court decision leaves to the parties the understanding of the contractual conditions for the application of the reversion that will take place in May 2015. In Interconnection Mobile and fixed operators in Colombia have the right to interconnect to other operators’ networks. Before the intervention of regulatory authorities, operators must attempt direct negotiations. Interconnection must assure compliance with the objectives of non-discriminatory treatment, transparency, prices based on costs plus a reasonable profit and promotion of competition termination rates are regulated by CRC Resolutions No. 1763 and 3136 of 2011, No. 3534 of 2012 and No. 4660 of 2014, and in particular resolutions No. 4002 and 4050 of 2012, that apply to dominant operator. Additionally, CRC Resolution No. 3101 of 2011 adopted a unique interconnection regime, which promotes competition and guarantees access to networks and networks elements to other providers of telecommunications, content and apps. In 2011,
During 2013, the Constitutional Court Ruling issued national roaming price regulation, extending the application of the objective value set for mobile termination rates to this service and imposing a value of 25.63 Colombian pesos per Mbyte for 2013, 19.36 Colombian pesos for 2014 and 13.09 Colombian pesos for 2015. The Resolution No. 4660 of 2014 established a different value for new entrant operators which obtained Prices and tariffs The Technologies of Regulation in quality and users’ protection During 2013 the Commission established rules to protect users in matters such as international roaming services, and ordered providers to automatically compensate users, as of January 2014, for the blocking, suspension or disconnection of fixed services. For mobile services, the Commission ordered the automatic compensation (via minutes) for dropped calls. During 2014, the Commission established the removal of minimum stay terms for mobile services, and the selling of terminals and services by separated agreements from the In terms of quality, the obligations to facilitate monitoring and controls are highlighted, which were imposed in Television services The Company pays the National Television Authority a periodic consideration for the license obtained in 2007 to offer television services, initially set as 10% of the gross revenues of the company for television services, reduced to 7% in 2010. Since 2012, it is based on a fixed value of 1,874.32 Colombian pesos per user, updated yearly to the consumer gross price index (IPC) and the number of registered users. Competition law The Colombian Competition Law is incorporated in the Peru General regulatory framework The provision of telecommunications services in Peru is governed by the Telecommunications Law and related regulations. In July 2012, the Peruvian Congress approved the Law of Promotion of the Broad Band and Construction of the National Fiber Optic Backbone, Law No. 29904. This Law declares of public necessity: (i) the construction of the National Fiber Optic Backbone which will be entitled to the government to make possible the connectivity by the broad band, and; ii) the access and use of the infrastructure associated with the public services of energy and hydrocarbon to facilitate the display of the telecommunication network for the provision of the broad band. In addition, Law No. 29904 implies that operators of electric, transport and hydrocarbon infrastructure projects will have to install fiber optic that will be entitled to the State and will be given in concession to other telecommunication operators. Also establishes that a percentage of the capacity of the National Fiber Optic Backbone will be reserved for the Government to satisfy its necessities. In November 2013, secondary legislation for developing Law No. 29904 was approved. On December 23, 2013 “Consorcio TV Azteca – Tendai” was awarded with the National Fiber Optic Backbone project. Licenses The main licenses and concessions to use spectrum are shown in the table at the end of this Annex. Additionally, Telefónica del Perú, 2027. In December 2013, Telefónica del Perú, S.A.A. submitted to the Transport and Communications Ministry an application to renew its concessions to provide nationwide fixed telecommunications services, for five years more. The aforementioned proceeding is still pending. Additionally, Telefónica del Perú, S.A.A. has five mobile services concessions. This concession where before entitled to Telefónica Móviles, Although the cable distribution broadcasting service concessions have expired, they Prices and tariffs Tariffs for fixed telephony services must be approved by On October 17, 2013, OSIPTEL fixed in 0.0025 per second 0.1478 per minute the Interconnection Mobile service providers are Competition The general competition framework in Peru is based on the Legislative Decree No. 1034. This Law it is applied, in the telecommunication sector, by OSIPTEL. Law No. 30083 was approved in September 2013, which seeks to strengthen competition in the public mobile market service by introducing mobile virtual network operators (MVNOs) and mobile rural infrastructure operators (MRIO). Mobile network operators must allow MVNOs access (when requested) to their elements and network services for a fee and should provide Ecuador General legislative framework On December 17, 2014 the National Assembly approved the new Telecommunications Act. The mentioned law was referred to the Executive for the Veto, and was sanctioned in February 2015. Finally, on February 18, 2015, the referred Telecommunication Act was published in the Official Journal and came into force on the same day. The National Secretary of Telecommunications and the National Counsel of Telecommunications are the authorities enabled with respect to the regulations, and the Superintendence of Telecommunications with respect to the control of the application of such regulation. Nonetheless, when the new Organic Law of Telecommunications comes into force, there will be a single regulatory and control body: the Agency for the Regulation and Control of Telecommunications. Licenses The main licenses and concessions to use spectrum are shown in the table at the end of this Annex. In addition, on February 18, 2015, Telefónica Ecuador reached an agreement with the Ecuadorian government to purchase 2x25 MHz of spectrum in 1900 MHz band. Otecel Prices and rates The retail prices of voice services and Short Message Service (SMS) are regulated through established tariff ceilings that are incorporated in the Concession Agreement. The wholesale prices are not regulated; however, at the end of 2014 CONATEL (National Council of Telecommunications) issued the Rules of Procedure of Mobile Virtual Network Operators, and the Rules of Procedure of National Automatic Roaming which allow the intervention of the regulator in setting wholesale prices for MVNOs and the National Automatic Roaming, but this discretion has not been implemented yet. Interconnection There is free negotiation between the parties, but if there is not agreement, the SENATEL (National Secretary of Telecommunications) is able to issue a rule of interconnection, and set interconnection charges. This action has been happening. Likewise, it is important to mention that at this time there is the asymmetric interconnection charges for operators Advanced Field Service. Competition Law The Antitrust Law was issued in 2011, which sets regulations about the prohibited practices of abuse of market power, collusive and unfair competition, procedures for investigating such practices, and the respective penalties. The Superintendence of Control of Market Power is the control authority, for this reason it can investigate and punish the prohibited practices. Also, it has been established a Regulation Board that has certain regulatory powers. Main concessions and licenses held by the Telefónica Group Below it is included a list of concessions and licenses to use spectrum for mobile services in each country.
Besides the spectrum assets included in ANNEX 1
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