FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month ofDecember, 2015
Brazilian Distribution Company
(Translation of Registrant’s Name Into English)
Av. Brigadeiro Luiz Antonio,
3142 São Paulo, SP 01402-901
Brazil
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F)
Form 20-F X Form 40-F
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (1)):
Yes ___ No X
(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101 (b) (7)):
Yes ___ No X
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ___ No X
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NOVA PONTOCOM COMÉRCIO ELETRÔNICO S.A., VIA VAREJO S.A., COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO,
QE PARTICIPAÇÕES LTDA. and CAMBERRA PARTICIPAÇÕES LTDA.
|
PROTOCOL AND JUSTIFICATION OF TOTAL SPIN-OFF OF NOVA PONTOCOM COMÉRCIO ELETRÔNICO S.A. |
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PROTOCOL AND JUSTIFICATION OF TOTAL SPIN-OFF OF NOVA PONTOCOM COMÉRCIO ELETRÔNICO S.A.
By this private instrument:
(1) NOVA PONTOCOM COMÉRCIO ELETRÔNICO S.A., a closed corporation (sociedade por ações fechada) headquartered in the city of São Paulo, State of São Paulo, at Rua Gomes de Carvalho, nº 1.609, 3º ao 7º andares, zip code 04547-006, enrolled with the Brazilian Corporate Taxpayers’ Registry of the Ministry of Finance (“CNPJ/MF”) under No. 09.358.108/0001-25, and with the Board of Trade of the State of São Paulo (“JUCESP”) under NIRE 35.300.386.540, hereby represented pursuant to its By-laws (“Nova Pontocom”);
(2) VIA VAREJO S.A., a publicly-held corporation (sociedade por ações aberta) headquartered in the city of São Caetano do Sul, State of São Paulo, at Rua João Pessoa, nº 83, Centro, zip code 09520-010, enrolled with CNPJ/MF under No. 33.041.260/0652-90 and with JUCESP under NIRE 35.300.394.925, hereby represented pursuant to its By-laws (“Via Varejo”);
(3) COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO, a publicly-held corporation (sociedade por ações aberta) headquartered in the city of São Paulo, State of São Paulo, at Av. Brigadeiro Luis Antônio, nº 3.142, zip code 01402-901, enrolled with CNPJ/MF under No. 47.508.411/0001-56 and with JUCESP under NIRE 35.300.089.901, hereby represented pursuant to its By-laws (“CBD”);
(4) QE PARTICIPAÇÕES LTDA., a limited liability company under incorporation, headquartered in the city of São Paulo, State of São Paulo, at Rua das Açucenas, nº 206, Cidade Jardim, CEP 05673-040 (parte), hereby represented pursuant to its Articles of Association (“QE Participações”); and
(5) CAMBERRA PARTICIPAÇÕES LTDA., a limited liability company under incorporation, headquartered in the city of São Paulo, State of São Paulo, hereby represented pursuant to its Articles of Association (“Camberra Participações” and jointly referred to with Nova Pontocom, Via Varejo, CBD and QE Participações as “Parties” and, individually, as “Party”).
THE PARTIES DECIDE, in compliance with the provisions set forth in Articles 224, 225, 227 and 229 of Law No. 6,404, dated December 15, 1976, as amended (“Brazilian Corporate Law”), to enter into this Protocol and Justification of Total Spin-off (“Protocol”), which shall regulate the terms and conditions applicable to the total spin-off of Nova Pontocom followed by absorption of the respective spin-off assets, as indicated below, by Via Varejo, CBD, QE Participações and Camberra Participações (“Receiving Companies” and “Spin-off”, respectively), subject to the approvals referred to in Clause 4.2 below.
1 Purpose
The purpose of the Protocol is to establish the basis of the non-proportional Spin-off, upon subsequent transfer to each Receiving Companies of a portion of assets of Nova Pontocom proportionally to their interests in the net equity of Nova Pontocom, as provided for in Article 229, paragraph 3 and Article 229, paragraph 5, part two, of the Brazilian Corporate Law and pursuant to the spin-off provided for in the Shareholders’ Agreement of Nova Pontocom, entered into on 23 July, 2014 among all shareholders of Nova Pontocom, provided that the spin-off assets allocated to the merger will be transferred to the Receiving Companies, which will be resolved on by the board of directors and the shareholders of Nova Pontocom, the shareholders of Via Varejo and CBD and the shareholders of QE Participações and Camberra Participações.
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2 Justification and interest of the Parties to perform the Spin-off
Management of Nova Pontocom and of the Receiving Companies understand that, if approved, the Spin-off will result in the transfer to, and the consequent absorption by, the Receiving Companies, of all assets and liabilities of Nova Pontocom, which will result in capital and financial nature benefits to the Parties and will optimize the corporate structure of the group to which they belong by enabling each of the Parties to have greater autonomy and flexibility to manage their investments.
3 Appraisal of Spin-off Assets
3.1 Spin-off Assets. As a result of the Spin-off, the total net equity of Nova Pontocom, comprised by the assets and liabilities described in the Report (as defined below), will be transferred to and received by the Receiving Companies, provided that:
(i) the assets and liabilities of Via Varejo, equivalent to 43.900% of total amount of Spin-off Assets, are listed in Exhibit 4 attached to the Report (“Via Varejo Spin-off Assets”);
(ii) the assets and liabilities da CBD, equivalent to 53.203% of total amount of Spin-off Assets, are listed in Exhibit 4 attached to the Report (“CBD Spin-off Assets”);
(iii) the assets and liabilities da QE Participações, equivalent to 2.723% of total amount of Spin-off Assets, are listed in Exhibit 4 attached to the Report (“QE Participações Spin-off Assets); and
(iv) the assets and liabilities da Camberra Participações, equivalent to 0.174% of total amount of Spin-off Assets, are listed in Exhibit 4 attached to the Report (“Camberra Participações Spin-off Assets” and, jointly with QE Participações Spin-off Assets, Via Varejo Spin-off Assets and CBD Spin-off Assets, the “Spin-off Assets”).
3.2 Appraisal. The Parties agree that, pursuant to the appraisal report provided for in Exhibit 3.2 attached hereto (“Report”), the book value of each of the Spin-off Assets was appraised by MAGALHÃES ANDRADE S/S AUDITORES INDEPENDENTES, enrolled with the Regional Accounting Council of the State of São Paulo under No. 2SP000233/O-3, and with CNPJ/MF under No. 62.657.242/0001-00, headquartered in the city of São Paulo, State of São Paulo, at Av. Brigadeiro Faria Lima, nº 1.893, 6º andar, Jardim Paulistano (“Appraisal Firm”), as of the date of reference on September 30, 2015, based on the balance sheet prepared by the management of Nova Pontocom as of the same date and for this specific purpose. Pursuant to the Report, the total book value of Spin-off Assets, to be absorbed by the Receiving Companies, is equivalent to R$ 10,000.00 (tem thousand reais), of which (i) R$ 4,389.97 (four thousand, three hundred and eighty nine and ninety seven cents) is equivalent to Via Varejo Spin-off Assets; (ii) R$ 5,320.34 (five thousand, three hundred and twenty reais and thirty four cents) is equivalent to CBD Spin-off Assets; (iii) R$ 272.27 (two hundred and seventy two reais and twenty seven cents) is equivalent to QE Participações Spin-off Assets; and (iv) R$ 17.42 (seventeen reais and forty two cents) is equivalent to Camberra Participações Spin-off Assets.
3.3 Spin-off Assets.
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(i) Via Varejo Spin-off Assets will be received by Via Varejo in replacement of 26,643,996 (twenty six million, six hundred and forty three Thousand, nine hundred and ninety six) shares issued by Nova Pontocom which are held by Via Varejo;
(ii) CBD Spin-off Assets will be absorbed by CBD in replacement of 32,290,656 (thirty two million, two hundred and ninety thousand, six hundred and fifty six) shares issued by Nova Pontocom which are by CBD;
(iii) QE Participações Spin-off Assets will be absorbed by QE Participações in replacement of1,652,465 (one million, six hundred and fifty two Thousand, four hundred and sixty five) shares issued by Nova Pontocom which are held by QE Participações; and
(iv) Camberra Participações Spin-off Assets will be absorbed by Camberra Participações in replacement of105,721 (one hundred and five thousand, seven hundred and twenty one) shares issued by Nova Pontocom which are held by Camberra Participações.
3.4 Equity variations. If the proposed Spin-off is approved, the Receiving Companies shall receive and directly record in their respective financial statement potential equity variations resulting from the Spin-off Assets between base date 30 September 2015 and the date of receipt of Spin-off Assets by the Receiving Companies, if any, proportionally to their interests held in the corporate capital of Nova Pontocom.
3.5 Conflict. The Appraisal Firm represented not to be directly or indirectly interested in the Parties, or also, in the Spin-off itself, in a way that could prevent or affect the preparation of the Report requested to it, for purposes of the Spin-off.
4 General Spin-off Aspects
1.1 If the proposed Spin-off is approved, the Spin-off will be implemented pursuant to the following conditions:
4.1 Corporate Capital.
4.1.1 Current composition.
(i) The corporate capital of Nova Pontocom, fully subscribed and paid up, amounts to R$ 50,741,294.71 (fifty million, seven hundred and forty one thousand, two hundred and ninety four and seventy one cents), divided into 60,692,838 (sixty million, six hundred and ninety two Thousand, eight hundred and thirty eight) common, registered shares with no par value, distributed among shareholders as follows:
Shareholder | Common Shares | Interest % |
CBD | 32,290,656 | 53.203 |
Via Varejo | 26,643,996 | 43.900 |
QE Participações | 1,652,465 | 2.723 |
Camberra Participações | 105,721 | 0.174 |
Total | 60,692,838 | 100.00 |
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(ii) The corporate capital of Via Varejo, fully subscribed and paid up, amounts to R$ 2,895,453,338.98 (two billion, eight hundred and ninety five million, four hundred and fifty three thousand, three hundred and thirty eight reais and ninety eight cents), divided into 1,290,885,925 (one billion, two hundred and ninety million, eight hundred and eight five thousand, nine hundred and twenty five) book-entry shares with no par value, (a) 655,869,693 (six hundred and fifty five million, eight hundred and sixty nine thousand, six hundred and ninety three) of which refer to common shares; and (b) 635,016,232 (six hundred and thirty five, sixteen thousand, two hundred and thirty two) of which refer to preferred shares;
(iii) The corporate capital of CBD, fully subscribed and paid up, amounts to R$ 6,806,089,454.81 (six billion, eight hundred and six million, eighty nine thousand, four hundred and fifty four reais and eighty one cents), divided into 265,699,779 (two hundred and sixty five million, six hundred and ninety nine thousand, seven hundred and seventy nine) book-entry shares with no par value, (a) 99,679,851 (ninety nine million, six hundred and seventy nine, eight hundred and fifty one) of which refer to common shares; and (b) 166.019.928 (one hundred and sixty six million, nineteen thousand, nine hundred and twenty eight) of which refer to preferred shares;
(iv) The corporate capital of QE Participações, fully subscribed and paid up, amounts to R$ 29,643,342.00 (twenty-nine million, six hundred forty-three thousand, three hundred forty-two reais), divided into 29,643,342 (twenty-nine million, six hundred forty-three thousand, three hundred forty-two) quotas, with par value of R$ 1.00 (one real) each, distributed among its partners as follows:
Partner | Quotas | Interest % |
German Pasquale Quiroga Vilardo | 14,821,671 | 50.00 |
Eduardo Khair Chalita | 14,821,671 | 50.00 |
Total | 29,643,342 | 100.00 |
(v) The corporate capital of Camberra Participações, fully subscribed and paid up, amounts to R$ 1,007,655.00 (one million, seven thousand, six hundred fifty-five reais), divided into 1,007,655 (one million, seven thousand and six hundred and fifty five) quotas, with par value of R$ 1.00 (one real) each, distributed among its partners as follows:
Partner | Quotas | Interest % |
Cintia Mendonça | 18,586 | 1.84% |
Demetrius Ferreira da Silva | 10,617 | 1.05% |
Deni Yuko Higa | 86,306 | 8.56% |
Gabriel Chagas Cordeiro | 9,293 | 0.92% |
Hilda Luzia Kozlowski | 53,108 | 5.27% |
José Ricardo Ficher Tancredi | 37,172 | 3.69% |
Julia Barreto Rueff | 18,586 | 1.84% |
Lilian Tiemi Takada | 37,172 | 3.69% |
Lucas Correia dos Santos | 34,512 | 3.43% |
Luciano de Freitas Manolio | 37,172 | 3.69% |
Marcel Baldi Jacob | 26,544 | 2.63% |
Marcelo Luiz Pagotto Recco | 37,172 | 3.69% |
Marcelo Machado Estevão | 17,261 | 1.71% |
Marcia Teixeira | 18,586 | 1.84% |
Marcio Vianna de Melo | 37,172 | 3.69% |
Marco Antonio Andre Provetti | 55,758 | 5.53% |
Regis Borghi | 185,870 | 18.45% |
Valeria de Almeida Valentim | 37,172 | 3.69% |
Vicente Rodrigues de Rezende Filho | 185,870 | 18.45% |
Werner Germano Dopheide | 63,726 | 6.32% |
Total | 1,007,655 | 100% |
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4.1.2 Spin-off Effects to the Parties.If approved, the Spin-off:
(i) will result in the extinction of Nova Pontocom;
(ii) will not result in the change of the corporate capital of Via Varejo, considering that, as a result of the Spin-off, the investment made by Via Varejo in Nova Pontocom will be cancelled and replaced with the assets and liabilities included in Via Varejo Spin-off Assets;
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(iii) will not result in the change of the corporate capital of CBD, considering that, as a result of the Spin-off, the investment made by CBD in Nova Pontocom will be cancelled and replaced with the assets and liabilities included in CBD Spin-off Assets;
(iv) will not result in the change of the corporate capital of QE Participações, considering that, as a result of the Spin-off, the investment made by QE Participações in Nova Pontocom will be cancelled and replaced with assets and liabilities included in QE Participações Spin-off Assets;
(v) will not result in the change of the corporate capital of Camberra Participações, considering that, as a result of the Spin-off, the investment made by Camberra Participações in Nova Pontocom will be cancelled and replaced with assets and liabilities included in Camberra Participações Spin-off Assets;
(vi) will be carried out based on the total net equity of Nova Pontocom, upon transfer to the Receiving Companies of assets and liabilities proportionally to their interests held in Nova Pontocom;
(vii) balances of assets and liabilities related to existing agreements between Nova Pontocom and Via Varejo and between Nova Pontocom and CBD, which are described inExhibit 4.1.2(vii) attached hereto, will be liquidated by means of equity merger; and
(viii) all suits, claims, action and judicial or administrative proceedings of any nature, including, but not limited to, of labor, social security, civil, tax, environmental and commercial nature, related to acts performed or triggering events occurred until the date of Spin-off consummation will be attributed to CBD, which shall, upon succession, plaintiff/defendant in such suits, claims, action and proceedings.
4.2 Conditions to implement Spin-off. Spin-off implementation, upon transfer of Spin-off Assets to the Receiving Companies, appointment of Appraisal Firm, Report approval and other terms and conditions set forth herein, were approved (i) by the board of directors of Via Varejo and by the board of directors of CBD, on 18 November 2015; (ii) by the board of directors of Nova Pontocom, on 18 November 2015, and are subject to the approval or ratification, as the case may be, (a) of the shareholders of Nova Pontocom, the shareholders of Via Varejo and theshareholders of CBD; and(b) of the partners of QE Participações and Camberra Participações.
4.3 Succession of rights and obligations. In accordance with the provisions of item 4.1.2(viii), the Receiving Companies shall succeed Nova Pontocom in all of its rights and obligations not expressly described herein, proportionally to their respective Spin-off Assets, pursuant to Article 229, paragraph 1, part two, and shall be held jointly liable for Nova Pontocom’s obligations, pursuant to Article 233,caput, of the Brazilian Corporate Law.
4.4 Reimbursement amount. The right of withdrawal is not applied to the shareholders of Nova Pontocom since Spin-off approval depends on consent from all shareholders of Nova Pontocom, that is, all Receiving Companies, pursuant to Article 229, paragraph 5, part two, of the Brazilian Corporate Law
4.5 Interests in the corporate capital of the Parties. As of the date hereof, CBD holds 410,352,691 (four hundred and tem million, three hundred and fifty two Thousand, sixhundred and ninety one) common shares and 149,168,394 (one hundred and forty nine million, one hundred and sixty eight thousand, three hundred and ninety four) preferred shares issued by Via Varejo, which will not be changed as a result of the Spin-off. As described in item 4.1.2 above, the shares held by CBD, Via Varejo, QE Participações and Camberra Participações in the corporate capital of Nova Pontocom will be cancelled as a result of the Spin-off.
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5 GENERAL PROVISIONS
5.1 Severability. Possible order rendered by any court to cancel or deem any of the covenants set forth herein unenforceable shall not affect the validity or effectiveness of the other covenants set forth herein, which shall be fully complied with, provided that the Parties shall use their best efforts in order to be validly adjusted to obtain the same effects of such cancelled or unenforceable covenant.
5.2 Entire agreement, exhibits and amendments. This Protocol and its exhibits constitute the entire understanding and covenants between the managers of the Parties, as applicable, with respect to the matters regulated herein. This Protocol and its exhibits may only be changed or amended through a written instrument signed by all managers of the Parties.
5.3 Filing. Upon Spin-off approval by the shareholders ofNova Pontocom,by the shareholdersVia Varejo and CBDand by the partners of QE Participações and Camberra Participações, the management of the Receiving Companies shall file and publish all acts related to the Spin-off, pursuant to Article 229, paragraph 4, of the Brazilian Corporate Law.
5.4 Applicable law.This Protocol shall be governed by and construed in accordance with the laws of the Federative Republic of Brazil.
5.5 Recommendation. In light of the foregoing, including all requirements provided for in Articles 224 and 225 of the Brazilian Corporate Law, the Spin-off is deemed to meet the interests of the Parties and its shareholders, reason by which the implementation thereof is hereby recommended.
IN WITNESS WHEREOF, the Parties execute this Protocol and Justification of Total Spin-off in fifteen (15) counterparts, same in content and form, in the presence of the two (2) undersigned witnesses.
São Paulo, 3 December, 2015.
NOVA PONTOCOM COMÉRCIO ELETRÔNICO S.A.
_________________________________ |
|
VIA VAREJO S.A.
_________________________________ | ____________________________________ |
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COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO
_________________________________ | ____________________________________ |
QE PARTICIPAÇÕES LTDA.
_________________________________ Eduardo Khair Chalita Manager |
|
CAMBERRA PARTICIPAÇÕES LTDA.
_________________________________ Regis Borghi Manager | ____________________________________ Manager |
Witnesses:
Name: |
| Nome: |
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NOVAPONTOCOMCOMÉRCIOELETRÔNICOS.A.
AppraisalReportbasedonbookvalueforpurposesoftotalspin-offwithmerger Nov.05.15 100080/15
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Dear Shareholders of
NOVA PONTOCOM COMÉRCIO ELETRÔNICO S.A. COMPANY BRASILEIRA DE DISTRIBUIÇÃO
VIA VAREJO S.A.
MAGALHÃES ANDRADE S/S AUDITORES INDEPENDENTES, audit and advisory firm, enrolled with the Regional Accounting Council of the State of São Paulo under n° 2SP000233/O-3 and with the National Corporate Taxpayers’ Registry under n° 62.657.242/0001-00, headquartered at Av. Brigadeiro Faria Lima, 1893 - 6° andar, Jardim Paulistano, São Paulo, SP, appointed by you as the appraiser responsible for the appraisal of the net worth of Nova Pontocom Comércio Eletrônico S.A., for purposes of total spin-off and merger of the spun-off portions into the net worth of Companhia Brasileira de Distribuição, Via Varejo S.A., Holding 1 and Holding 2, upon compliance with the necessary diligences and verifications to perform the work, presents the attached
Appraisal Report
In which terms, we subscribe. São Paulo, 5 November 2015
MAGALHÃES ANDRADE S/S
Independent Auditors CRC2SP000233/O-3
[signature]
GUY ALMEIDA ANDRADE
Partner
Accountant CRC1SP116758/O-6
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APPRAISALREPORT
INTRODUCTION
1. GrupoPãodeAçúcarisundertakingareorganizationwhereby,accordingtothemanagementsofNOVAPONTOCOMCOMÉRCIOELETRÔNICOS.A.(NOVAPONTOCOMorSPUN-OFFCOMPANY)andRECEIVINGCOMPANIES,COMPANHIABRASILEIRADEDISTRIBUIÇÃO(CBD),VIAVAREJOS.A.(VIAVAREJO),HOLDING1andHOLDING 2,the Spin-offwilltriggerthetransferandthesubsequentmergerofthetotalassetsand liabilitiesofNOVAPONTOCOM,whichwillresultin equity andfinancialbenefitstothePartiesandoptimizethecorporatestructureofthegrouptowhichthesecompaniesbelong,asitallowseachofthePartiestohavemoreautonomyandflexibilityinthemanagementoftheirinvestments.
2. HOLDINGS1and2,whichwillincoporateaportionofthenetassetswereinprocessof incorporationatthetimeofpreparationofthisreport.Capitalstockoftheholdingsshallbe
paidupbysharesofNOVAPONTOCOMheldbyminorityshareholders.
3. Accordingly,thepurposeofthisReportistodeterminethevalueofthenetworthatbookvaluetobespun-off,takinginto considerationthefinancialconditionof NOVAPONTOCOMasat30September2015.
4. TheReportisissuedinconnectionwiththeauditofthebalancesheetofNOVAPONTOCOMpreparedforsuchpurposeasat30September2015.ThemanagementisresponsibleforthepreparationandappropriatepresentationofthesefinancialstatementsinaccordancewithaccountingpracticesadoptedinBrazilandforsuchinternalcontrolasmanagementdetermines isnecessary toenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,regardlessifcausedbyfraudorerror.
5. TheappraisalwasconductedinaccordancewithBrazilianandinternationalauditingrules.Suchrulesrequirethecompliancewithethicalrulesbytheauditorsandthattheauditisplannedandperformedwithpurposestoobtainreasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement.
6. Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Thechosenproceduresdependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementsofthefinancialstatements,regardlessifcausedbyfraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheCompany’spreparationandappropriatepresentationofthefinancialstatementsinordertodesignauditproceduresthatareadequateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheCompany’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriateness of accounting policies used and the reasonableness of accounting
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estimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthe
financialstatements.
7. Webelievethattheauditevidenceobtainedisenoughandappropriatetosupporttheopinion.
FINANCIALCONDITIONOFNOVAPONTOCOM
8. Theassessmentiscarriedoutatbookvalue,asset forthinarticle226of Law6404/76, andbasedonthefinancialconditionreflectedintheBalanceSheetasat30September2015,includedasEXHIBIT1andwhosefinancialconditionofnegativeequityisbrokendownasfollows:
ASSETS | 236,205,960.79 |
(-)LIABILITIES | 250,692,486.65 |
NEGATIVEEQUITY | (14,486,525.86) |
9. SuchbalancesheetwaspreparedinaccordancewithaccountingpracticesadoptedinBrazil
andconsidered,forpurposesofassessment,thatthecompanyshallcontinueasagoingconcern.EXHIBIT2describesthemainaccountingpracticesandpoliciesadoptedbyNOVAPONTOCOM.
10. NOVAPONTOCOM maintainsitsaccountingrecords inaregularmannerin own booksandthebalancesaredulyrecordedandreconciled.
11. InNOVAPONTOCOM’sassetstherearetaxcreditsarisingfromaccumulatedlosses,netoftheprovisionforimpairmentlossoftheseassets,intheamountofR$4,014,222.34(fourmillion,fourteenthousand,twohundredandtwenty-twoandthirty-fourcents).Asthisbalancecannotbeoffsetagainst theRECEIVING COMPANIES’profit,this balanceshallbereducedtozero.SuchadjustmentwasadoptedinthisReportandis describedinEXHIBIT3hereto.
12. Inassets,thereisalsoacreditarisingfromdeferredtemporarydifferences,whichshallbeadjustedtoreflectthebenefitthatshallbetransferred,whichreducesthebalancebyR$1,375,225.63.
13. On5November2015,managementusedaportionofthebalanceoftheloanagreementsenteredwithshareholdersCompanhiaBrasileiradeDistribuiçãoandViaVarejotopartiallyoffsetaccumulatedlosses.ThisoffsetisintheamountofR$19,885,973.83(nineteenmillion,eighthundredandeighty-fivethousand,ninehundredandseventy-threeReaisandeighty-threecents),outofwhichR$10,895,645.22(tenmillion,eighthundredandninety-fivethousand,sixhundredandforty-fiveReaisandtwenty-twocents)againstCBDandR$8,990,328.61(eightmillion,ninehundredandninetythousand,threehundredandtwenty-eightReaisandsixty-onecents)againstViaVarejo.
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14. TheSPUN-OFFCOMPANYhasacurrentaccountbalancewithCBD,intheamountof
R$2,406,046.80(twomillion,fourhundredandsixthousand,forty-sixReaisandeightycents).ThisbalanceshallbeoffsetuponmergerandshallnotimpacttheRECEIVINGCOMPANY’snetworth.
15. Inliabilities,theSPUN-OFFCOMPANYhascreditsarisingfromloanagreementswithCBD,inthetotalamountof,aftertheadjustmentreferredtoinparagraph13,R$88,982,827.52(eighty-eightmillion,ninehundredandeighty-twothousand,eighthundredandtwenty-sevenReaisandfifty-twocents)andwithVIAVAREJO,inthetotalamountofR$74,876,159.77(seventy-fourmillion,eighthundredandseventy-sixthousand,onehundredandfifty-nineReaisandseventy-sevencents).ThesebalancesshallbeoffsetuponmergerandshallnotimpacttheRECEIVINGCOMPANIES’networth.
16. Byvirtueoftheadjustmentsdescribedinparagraphs11,12and13,thefinancialconditionofNOVAPONTOCOM,asat30September2015,forpurposesofspin-off,isdescribedinEXHIBIT4andissummarizedasfollows:
ASSETS | 230,816,512.82 |
(-)LIABILITIES | 230,806,512.82 |
SHAREHOLDERS'EQUITY | 10,000.00 |
17. ThecapitalstockofNOVAPONTOCOMamountstoR$50,741,294.71(fiftymillion,seven
hundredandforty-onethousand,twohundredandninety-fourReaisandseventy-onecents)andisdividedinto60,692,838(sixtymillion,sixhundredandninety-twothousandandeighthundredandthirty-eight)shares,distributedasfollows:
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18. BasedontherestatedbalancesheetofNOVAPONTOCOM,onthespin-offisbased,the
equityvalueofiharesisR$0,000165.
Caption:
Valorpatrimonialdasações–Equityvalueoftheshares
Valordopassiveadescoberto–Valueofinsufficiencyofassets
Quantidadedeações-NumberofShares.
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EFFECTOFTHESPIN-OFFONNOVAPONTOCOM
19. Asaresultofthespin-off,NOVAPONTOCOMshallbeextinct,anditsnetassetsshallbeabsorbedbytheRECEIVINGCOMPANIES,assetforthinEXHIBIT4.
Shares held by CBD, VIA VAREJO, HOLDING 1and HOLDING 2, equalto the spin-off shall
20.
beforfeitedandreplacedwithassetsandliabilitiesincorporatedthereby.
EFFECTOFTHEMERGERONCBD
21. CBD absorbs partofthe networthofNOVAPONTOCOM intheamountofR$5,320.34(fivethousand, threehundredandtwentyReaisandthirty-fourcents),asdemonstratedinEXHIBIT4.
22. NOVA PONTOCOM’ssharesheldbyCBDshallbecancelledandreplacedwithassetsandliabilitiesincorporatedthereby,whileCBD’sinterestinNOVAPONTOCOMisextinguished,intheexactamountofthenetassetsincorporatedhereby,withoutanyimpactonitsnetworth.
EFFECTOFTHEMERGERONVIAVAREJO
23. VIAVAREJOabsorbspartofthenetworthofNOVAPONTOCOMintheamountofR$4,389.97(fourthousand,threehundredandeighty-nineReaisandninety-sixcents).
24. NOVAPONTOCOM’ssharesheldbyVIAVAREJOshallbecancelledandreplacedwithassetsandliabilitiesincorporatedthereby,whileVIAVAREJO’sinterestinNOVAPONTOCOMisextinguished,intheexactamountofthenetassetsabsorbedhereby,withoutanyimpactonitsnetworth.
EFFECTOFTHEMERGERONHOLDING1
25. HOLDING1absorbspartofthenetworthofNOVAPONTOCOMintheamountofR$272.27(twohundredandseventy-twoReaisandtwenty-sevencents),asdemonstratedinEXHIBIT4.
ThesharesofNOVAPONTOCOMheldbyHOLDING1willbereplacedandforfeitedbytheassets
26.
andliabilitiesincorporatedthereby,atthesametimeastheinterestofHOLDING1inNOVA PONTOCOMwillbeextinct,attheexactamountofthenetassetabsorbed,withoutanyimpactinits netasset.
EFFECTOFTHEMERGERONVIAHOLDING2
27. HOLDING2absorbspartof thenet worthofNOVAPONTOCOMin theamountof R$17.42(seventeenReaisandforty-twocents),asdemonstratedinEXHIBIT4.
28. ThesharesofNOVAPONTOCOMheldbyHOLDING 2willbe replacedand forfeitedbythe assetsandliabilitiesincorporatedthereby,atthesametimeastheinterestofHOLDING2in NOVAPONTOCOMwillbeextinct,attheexactamountofthenetassetincorporated, without anyimpactinitsasset.
17
CONCLUSION
29. Giventhefindingsandstatements,itcanbeconcludedthattheSpun-OffCompany’sinstallmentofNOVAPONTOCOMon30September2015,transferredtoCOMPANHIABRASILEIRADEDISTRIBUIÇÃO,toVIAVAREJOS.A.,andtotwonewHoldings,representsanadjustednetworthofR$10,000.00(tenthousandReais)andisincompliancewitharticle226ofLaw6,404/76.
REPRESENTATIONS
30. Theappraisalexpertexpresslyrepresentsthatshehasnointerest,directlyorindirectly,inNOVAPONTOCOMCOMÉRCIOELETRÔNICOS.A.,inCOMPANHIABRASILEIRADEDISTRIBUIÇÃO,inVIAVAREJOS.A.,inHOLDING1andinHOLDING2oreveninthetransaction,andthatthereisnoothercircumstancethatcouldcharacterizeaconflictofinterest.ShealsoinformsthatthemanagersofNOVAPONTOCOM,CBD,andVIAVAREJOdidnotlimit,difficult,orperformanyactsthatcouldhavecompromisedtheaccess,use,orknowledgeofinformation,properties,documents,orworkmethodsrelevanttothe qualityoftherespectiveconclusions.
ThisReportisissuedinsix(6)counterpartsandhasseven(7)pagesandfour(4)exhibits,printedonjustonesideandinitialedbytheundersignedexpert.
SãoPaulo,5November2015.
MAGALHÃESANDRADES/S
IndependentAuditorsCRC2SP000233/O-3
[signature]
GUYALMEIDAANDRADE
Partner
AccountantCRC1SP116758/O-6
18
NOVAPONTOCOMCOMÉRCIOELETRÔNICOS.A.
EXHIBIT1
BalanceSheetasof09.30.2015(amountsinReais)ASSETS
Current |
| ||
JudicialDeposits | 3,124,729.26 | ||
RecoverablePIS | 4,250,121.39 | ||
RecoverableCOFINS | 20,567,217.42 | ||
IncomeTaxtobeRefunded/Offset | 3,405,094.21 | ||
RecoverableINSS |
| 491,684.76 | |
| |||
TotalCurrentAssets | 31,838,847.04 | ||
Non-current |
| ||
CreditReceivables-Globex | (0.04) | ||
CreditReceivables-CBD | 2,406,046.80 | ||
DeferredIncomeTax-TaxLoss | 12,951,887.15 | ||
ProvisionforLoss-DeferredIncomeTax-TaxLoss | (8,937,664.81) | ||
DeferredIncomeTax-TemporaryDifferences | 1,448,086.98 | ||
PIS | 47,384,918.22 | ||
COFINS | 214,248,882.40 | ||
EquityInterests-CNova | (77,483,243.53) | ||
EquityInterests-LuxCo. | 12,295,904.46 | ||
EquityInterestatCDiscount | 52,296.12 | ||
Totalnon-currentassets |
| 204,367,113.75 | |
| |||
TOTALASSETS |
| 236,205,960.79 | |
| |||
LIABILITIESANDNETWORTH |
| ||
LIABILITIES |
| ||
19
Non-current |
| |
ObligationsExtra.COm | 5,517,241.38 | |
NPC-Brussels(ReimbursementofExpenses) | 61,215,986.06 | |
OtherProvisions | 214,298.09 | |
ProvisionsforContingencies | 4,415,252.59 | |
IndemnificationAssets | (4,415,252.59) | |
LoanAgreement-CBD | 76,144,039.11 | |
LoanAgreement-ViaVarejo | 63,937,417.39 | |
InterestwithoutLoanAgreement-CBD-NPC | 23,734,433.63 | |
InterestwithoutLoanAgreement-ViaVarejo | 19,929,070.99 | |
TOTALLIABILITIES | 250,692,486.65 | |
NETWORTH |
| |
Paid-upCapitalStock | 50,741,294.71 | |
EquityMethod | 165,853.33 | |
CapitalReserve | 6,120,324.11 | |
LegalReserve | 404,762.17 | |
Transactionswithnon-controllingshareholdersNPC | 320,613,633.33 | |
FairValue-FinancialAssets | 8,585.88 | |
Profit(Loss)intheCorporateInterest | (15,871,321.17) | |
AccumulatedProfit(Loss) | (295,506,586.68) | |
EquityValuationAdjustment(Law11.638/07) | 21,697,831.21 | |
CNStockOptionReserve | 7,166,617.12 | |
DiscountStockOptionReserve | 5,248,080.01 | |
SharesHeldinTreasury | (742,846.83) | |
PensionPlan-CDiscount | (1,531,120.81) | |
AccumulatedConversionAdjustments |
| (113,001,632.24) |
|
20
21
NOVAPONTOCOMCOMÉRCIOELETRÔNICOS.A.
EXHIBIT2
MainAccountingPracticesandPolicies
1. Accountingrules
ThefinancialstatementswerepreparedpursuanttotherulesissuedbytheBrazilianAccountingPronouncementsCommittee–CPCandapprovedbytheFederalAccountingCouncil–CFC.
Thefinancial statementswerepreparedbasedonthehistoricalcost,exceptforcertain financialinstruments,measuredatthefairvalue.
Thefinancialstatements aresubmitted inReal,which is thefunctionalcurrency andthepresentationcurrencyoftheCompanyanditssubsidiaries.
2. Preparationandpresentationbasis
2.1. Useofjudgmentsandestimates
ThepreparationoftheCompany’sfinancialstatementsrequiresmanagementtousejudgments,estimates,andassumptionsthataffectthestatedamountsofrevenues,expenses,assets,liabilities,andtheirrelevantdisclosure,inadditiontothedisclosureofthecontingentliabilities.Uncertaintiesregardingsuchassumptionsandestimatesmaydeliverresultsthatrequirematerialadjustmentstothecarryingamountofaffectedassetsorliabilitiesinfuturefiscalyears.
Trials
IntheprocessofenforcingtheCompany’saccountingpolicies,Managementadoptedthefollowingjudgments,whichsignificantlyaffectedtheamountsrecognizedinthefinancialstatements:
Estimatesandassumptions
Wedescribebelowthemainassumptionswithrespecttofuturesourcesandothermainsourcesofuncertaintyintheestimatesonthedateofthebalancesheetthatmayposeasignificantriskofrequirementofmaterialadjustmentstothecarryingamountsofassetsandliabilitiesduringthenextfiscalyear.TheCompanybaseditsassumptionsandestimatesonmetricsavailableatthetimeofthepreparation ofthefinancial statements.However,the realcircumstances andassumptionsregardingfuturedevelopmentsmayvaryaccordingtochangesinthemarketorcircumstancesbeyondthecontroloftheCompany.Suchchangesarereflectedontheassumptionsastheyoccur.
2. Preparationandpresentationbasis(Continued)
2.1. Useofjudgmentsandestimates(Continued)
22
a) Impairmentofnon-financialassets
Theimpairmentoccurswhenthecarryingamountofanassetoracashgeneratingunitexceedsitsrecoverableamount,whichisthehigherofthefairvalue,lessanydisposalcosts,anditsvalueinuse.Forthisclosing,theCompanyperformednoimpairmenttests,whichshallbeperformedasoftheendoftheyear,butthereisnoevidenceofchangeinthebusinessenvironmentthatleavesroomtothereversaloftherecoverabilityoftheassets.
b) Taxcredits(PIS,COFINS,andICMS)
TheCompany issubjecttothemethodologyfortaxdebitsandcreditsthatmayaccrueundertheapplicablelawsandregulations.Managementtookintoaccountthepossibilitiesofrealizingthetaxcreditsbased onthetechnicalfeasibilitystudyonthefuturerealizationoftaxes,consideringtheongoingspin-offandtheuseofsuchbalancesbytheRECEIVINGCOMPANIES.
c) Provisionforjudicialclaims
TheCompanyisapartytoseverallegalandadministrativeproceedings.Theprovisionsforlegaldemandsaremadeforallactionslikelytogiverisetoresolutionexpenses.Theassessmentoftheprobabilityoflossincludesassessmentoftheavailableevidence,lawhierarchy,availablecaselaw,themostrecentcourtdecisionsandtheirlegalrelevance,aswellasassessmentbyoutsidecounsel.Managementbelievesthattheprovisionsfortax,civil,andlabordemandsareproperlypresentedintheconsolidatedseparatefinancialstatements.
d) Stock-basedcompensation
TheCompanymeasuresthecostofstock-basedcompensationtoemployeesbasedonthefairvalueoftheequityinstrumentsatthegrantingdate.
TheestimatedFairValueofstock-basedcompensationtransactionsrequireschoiceofthemostsuitableassessmentregime,dependingonthetermsandconditionsoftheaward.Thisestimatealsorequires choice ofthe mostsuitablesourcestobe usedintheassessmentmodel,includingtheexpectedusefullifeoftheshareoption,thevolatility,andthedividendyield,inadditiontotheuseofassumptionsinthisregard.
3. Mainaccountingpolicies
3.1 Controlledcompanies
TheCompanyisdeemedtobeincontrolwhenitisexposedorholdsrightstovariedreturnsresultingfromitsengagementwiththeinvestedcompanyandwhenitisabletoinfluencesuchreturnsthroughitspowerovertheinvestedcompany.
Specifically,theCompanyisdeemedtheparentofaninvesteeonlywhentheCompany:
• Haspowerovertheinvestedcompany(thatis,existingrightsensuringtheabilitytocontroltheinvestee’srelevantactivities);
23
• Is exposedor holdsrightstovaried returnsresultingfromits engagementwiththe investee;
and
• Canuseitspowerovertheinvesteetoinfluenceitsreturns.
IntheeventstheCompanyholdsanon-controllinginterestinthedecisionsorotherrightstoaninvestedcompany,theCompanytakesintoaccountallrelevantfactsandcircumstanceswhenanalyzingitspoweroveraninvestedcompany,suchas:
• Contractualagreementswithotherholdersofvotingrightsintheinvestedcompany;
• Rightsarisingfromcontractualagreements;
• TheCompany’svotingrightsandpotentialvotingrights.
TheCompanyreassesses itspositionofparentofaninvestedcompanyortheabsenceofsuchpositionifthefactsandcircumstancesindicatechangesinoneormoreofthesethreecontrolelements.
On30September2015,onlyLuxCo.isdeemedacontrolledcompany,inwhichtheCompanyholdsinterestof95.13%ofthecapitalstock.Incaseoftheotherinvestedcompanies,theCompanyisamemberofthecontrollinggroup,butitholdsaninterestlowerthan50%.
TheamountoftheinvestmentinthesecontrolledcompaniesisassessedthroughtheEquityMethod,basedontheinvestedcompanies’financialstatementsasofSeptember30,2015.
3.2. Impairmentofnon-currentassets
Theintangible assetswithindefiniteusefullifearetestedforimpairment atleastonceayear,on
31December,orwhenthereisanysignofimpairment.Otherassetsarealsotestedforimpairmentwheneverthereisanysignthereof.
3.Mainaccountingpolicies(Continued)
3.2. Impairmentofnon-currentassets(Continued)Cash-GeneratingUnits(CGUs)
Acashgenerationunitisthesmallergroupofassetsgeneratingcash,whichassetsare,mostofthetimes,independentfromthecashofotherassetsorgroupofassets.
Impairmentindicators
InadditiontotheexternalsourcesofdatamonitoredbytheCompany(economicenvironment,assetmarketvalue,etc.),theoperationalperformanceisusedasanimpairmentindicator.
Recoverableamount
Therecoverableamountofanassetisthehigherofitsfairvalue,lesssellingcosts,anditsvalue
24
inuse. Itisusually determinedonanindividualbasisforeachasset.Incasesuch determination
isnotpossible,therecoverableamountoftheCGUgrouptowhichtheassetbelongsisused.
FairValueis thepricethatwouldbereceivedforthesaleofanassetor paidforthetransfer ofaliabilityinanordinarytransactionbetweenmarketplayersonthedateofmeasurement.
The value in useisthepresent valueoftheexpectedfuture cashflowsfrom thecontinuoususeofanasset,plusaterminalvalue.Itisassessedinternallyorbyexternalexpertsbasedon:
• forecastedcashflowscontainedinthebusinessplanorbudgetswithmaximumtimehorizonoffiveyears.Cashflowsbeyondtheforecastperiodareestimatedthroughapplicationofaconstantordecreasinggrowthrate;
• theterminalvalueisdeterminedthroughapplicationofaperpetual growthrateuntilthe endoftheforecastedcashflow.Thecashflowsandterminalvaluearediscountedatlong-termrates,netoftaxes,reflectingthemarketestimatesofthetemporalcashvalueandspecificrisksrelatedtotheassets.
Reductiontorecoverablevalue(impairment)
ImpairmentlossesarerecognizedwhenthebookvalueofanassetorCGUtowhichitbelongsishigherthanitsrecoverableamount.Impairmentlossesareaccountedforasexpensesintheitem“Assetimpairmentloss”.
3.Mainaccountingpolicies(Continued)
3.2. Impairmentofnon-currentassets(Continued)Impairment(impairment)(Continued)
Impairmentlossesrecognizedinapreviousperiodarereversedif,andonlyif,therewerechangesintheestimates usedtodeterminethe recoverableamountofthe assetssincethelastrecognitionofanimpairmentloss.However,theincreaseinthebookvalueofanassetduetothereversedimpairmentlossesmaynotexceedthebookvaluethatwouldhavebeenassessedifnoimpairmentlossoftheassethadbeenrecognizedinpreviousyears.
On30September2015,theCompanyhadnointangibleassets.
3.3. Netequity
Stock-basedcompensation
Employees(includingseniorexecutivesoftheCompany)mayreceivesharecalloptionsandshareawards.
Thebenefitgrantedthroughshareoptionplans,assessedatthefairvalueuponaward,correspondstoanadditionalcompensation.Thefairvalueoftheoptionsonthedateoftheawardisrecognizedasemployeebenefitexpensesduringthevestingperiod.
25
ThefairvalueoftheoptionsisdeterminedthroughtheBlack&Scholesoptionpricingmodel,
basedonthecharacteristicsoftheplan,marketdata(includingthemarketpriceofthesharessubjecttotheoptions,volatilityoftheshareprice,andrisk-freeinterestrate)onthedateoftheaward,andonassumptionsrelatedtotheprobabilityofkeepingtherelationshipofthebeneficiarieswiththeCompanyuntiltheoptionsbecomeexercisable.
Thefairvalueoftheshareawardsisalsodeterminedbasedonthecharacteristicsoftheplan,marketdataonthedateoftheaward,andonassumptionsrelatedtotheprobabilityofkeepingtherelationshipofthebeneficiarieswiththeCompanyuntiltheoptionsbecomeexercisable.Intheeventtherearenorestrictionsontheexerciserelatedtotheshareawardplan,theexpenseisfullyrecognizeduponcreationoftheplan.Otherwisetheexpenseisdeferredthroughoutthevestingperiod,aslongastheconditionstoexercisearesatisfied.
3.Mainaccountingpolicies(Continued)
3.3. Networth(Continued)Dividends
WhenapplicabletothedistributionofdividendstoshareholdersoftheCompany,itisrecognizedasliabilitiesintheendoftheyear,basedonthemandatoryminimumdividendsdefinedinthebylaws.Anyamounts exceedingtheminimumdividendsshallbe accountedforonlyonthe dateonwhichsuchadditionaldividendsareapprovedbytheshareholdersoftheCompany.
3.4. FinancialliabilitiesDefinitions
Financialliabilitiesareclassifiedunderthecategoryofloansrecognizedattheamortizedcost.
Financialliabilitiesareclassifiedascurrentliabilities,iftheyexpirewithinoneyear,ornon-currentliabilities,iftheirexpirationdateiswithinmorethanoneyear.
Recognitionandmeasurementoffinancialliabilities
a) Financialliabilitiesrecognizedattheamortizedcost
Theloanagreementswithrelatedpartiesarerecognizedattheamortizedcostthroughtheeffectiveinterestratemethod.
b) Financialliabilitiesrecognizedatfairvaluethroughprofitorloss
FinancialliabilitiesthattheCompanyintendstomaintainfornegotiationintheshortterm.Theyaremeasuredatthefairvalue,andanygainsorlossesarisingfromreassessmentofthefairvaluearerecognizedintheincomestatement.On30September2015,theCompanyhasnofinancialliabilitiesunderthisclassification.
3.5. OtherProvisions
26
ProvisionsaremadewhentheCompanyhasa(legalorconstructive)presentobligationresulting
fromapastevent,whichamountmaybereliablyestimatedandwhenthereisaprobabilityofoutflowofresourcesthatincorporateeconomicbenefitsforacquittanceoftheobligation.Theprovisionsarediscountedwhentherelatedadjustmentismaterial.
3.Mainaccountingpolicies(Continued)
3.5. OtherProvisions(Continued)
Contingentliabilitiescorrespond toapotentialobligationthatresultsfrompast eventsandwhichexistenceshallbeconfirmedonlybytheoccurrence,orlackofit,ofoneormoreuncertainfutureeventsnotcompletely undercontrol oftheCompany,orpresentobligations forwhichnooutflowofresourcesthatincorporateeconomicbenefitsforacquittanceoftheobligationareexpected.Contingentliabilitiesarenotrecognizedinthebalancesheet,butaredisclosedinanotetothefinancialstatements.
3.6. Classificationoftheassetsandliabilitiesascurrentandnon-current
TheassetsexpectedtoberealizedorthattheCompanyintendstosellorconsumeduringtheregularcycleofitsoperationsorwithintwelvemonthsofthedateofthebalancesheetareclassifiedascurrentassets,togetherwiththeassetskeptwiththemainpurposeoftradingandcashandcashequivalents.Theotherassetsareclassifiedas“non-currentassets”.TheliabilitiesexpectedtobesettledduringtheregularcycleofoperationsoftheCompanyorwithintwelvemonthsofthedateofthebalancesheetareclassifiedascurrentliabilities.TheregularcycleofoperationsoftheCompanyisof12months.
Allreceivableorpayabledeferredtaxesareclassifiedasnon-currentassetsorliabilities.
3.7. Taxes.
CurrentIncomeTax
Currenttaxassetsandliabilitiesforthecurrentyeararedefinedattheexpectedrecoveryamountortheamounttobepaidtothetaxauthorities.
Thecurrentincometaxrelatedtoitemsdirectlyrecognizedasshareholder’sequity,whenapplicable,isrecognizedintheshareholders’equity,ratherthanintheincomestatement.Managementassesses,fromtimetotime,thepositionsaccountedforinthetaxreturnswithrespecttosituationsinwhichtheapplicabletaxlawsandregulationsaresubjecttointerpretationsandmakesprovisionswhenappropriate.
ThetaxationontheincomecomprisestheCorporateIncomeTax(“IRPJ”)andtheSocialContributiononNetProfits(“CSLL”)andiscalculatedbythetaxableincomeregime(adjustedprofit)attheapplicableratespursuanttothecurrentlawsandregulations:15%onthetaxableincomeandadditional10%onwhatexceedsR$240intaxableincomeperyear,forIRPJ,and9%forCSLL.
27
MainAccountingPracticesandPolicies
3.Mainaccountingpolicies(Continued)
3.7. Taxes(Continued)Deferredincometax
Thedeferredtaxesarerecognizedaccordingtothebalancesheet.Theyarecalculatedbytheliabilitymethod,whichconsistsintheadjustmentofthedeferredtaxesrecognizedinpreviousyearsduetoanychangesintheincometaxrate.
Thedeferredtaxassetscorrespondtofuturetaxbenefitsarisingfromdeductibletemporarydifferencesandcertainadjustmentswithexpectedrecovery.
Thedeferredtaxliabilitiesarefullyrecognizedfor:
• temporarytaxdifferences,exceptwhenthedeferredtaxliabilityresultsfromrecognitionofanon-deductiblegoodwill impairmentlossorfrominitialrecognitionofan assetorliabilityinatransactionotherthanabusinesscombinationthat,atthetimeofthetransaction,hasnoimpactontheaccountingprofitoronthetaxableprofit ortaxloss;and
• temporarytaxdifferencesrelatedtoinvestmentsincontrolledcompanies,exceptwhentheCompanyistheparentatthetimeofreversalofthedifferenceandifthereversalis notlikelytooccurinthenearfuture.
28
EXHIBIT3
NOVAPONTOCOMCOMÉRCIOELETRÔNICOS.A.
Adjustedbalancesheet(amountsinReais)
|
| Adjustments |
| |||
| Balanceas of 09.30.2015 | Debt. | Credit | Adjustedbalance | ||
ASSETS |
|
|
|
| ||
Current |
|
|
|
| ||
JudicialDeposits | 3,124,729.26 |
|
| 3,124,729.26 | ||
RecoverablePIS | 4,250,121.39 |
|
| 4,250,121.39 | ||
RecoverableCOFINS | 20,567,217.42 |
|
| 20,567,217.42 | ||
IncomeTax tobeRefunded/Offset | 3,405,094.21 |
|
| 3,405,094.21 | ||
RecoverableINSS | 491,684.76 |
|
| 491,684.76 | ||
TotalCurrent Assets | 31,838,847.04 |
|
| 31,838,847.04 | ||
Non-current |
|
|
|
| ||
CreditReceivables -Globex | (0.04) |
|
| (0.04) | ||
CreditReceivables -CBD | 2,406,046.80 |
|
| 2,406,046.80 | ||
DeferredIncomeTax-TaxLoss | 12,951,887.15 |
| 12,951,887.15 | - | ||
ProvisionforLoss -DeferredIncomeTax-TaxLoss | (8,937,664.81) | 8,937,664.81 |
| - | ||
DeferredIncomeTax-TemporaryDifferences | 1,448,086.98 |
| 1,375,225.63 | 72,861.35 | ||
PIS | 47,384,918.22 |
|
| 47,384,918.22 | ||
COFINS | 214,248,882.40 |
|
| 214,248,882.40 | ||
EquityInterests -CNova | (77,483,243.53) |
|
| (77,483,243.53) | ||
EquityInterests -CDiscount | 52,296.12 |
|
| 52,296.12 | ||
EquityInterestat-LuxCo. | 12,295,904.46 |
|
| 12,295,904.46 | ||
Totalnon-current assets | 204,367,113.75 |
|
| 198,977,665.78 | ||
TOTAL ASSETS | 236,205,960.79 |
|
| 230,816,512.82 | ||
LIABILITIES ANDNET WORTH |
|
|
|
| ||
LIABILITIES |
|
|
|
| ||
Non-Current |
|
|
|
| ||
ObligationsExtra.COm | 5,517,241.38 |
|
| 5,517,241.38 | ||
29
NPC -Brussels(Reimbursement ofExpenses) | 61,215,986.06 |
|
| 61,215,986.06 |
OtherProvisions | 214,298.09 |
|
| 214,298.09 |
ProvisionsforContingencies | 4,415,252.59 |
|
| 4,415,252.59 |
IndemnificationAssets | (4,415,252.59) |
|
| (4,415,252.59) |
LoanAgreement-CBD | 76,144,039.11 | 10,895,645.22 |
| 65,248,393.89 |
LoanAgreement- ViaVarejo | 63,937,417.39 | 8,990,328.61 |
| 54,947,088.78 |
InterestwithoutLoanAgreement-CBD-NPC | 23,734,433.63 |
|
| 23,734,433.63 |
InterestwithoutLoanAgreement-ViaVarejo | 19,929,070.99 |
|
| 19,929,070.99 |
TOTALLIABILITIES | 250,692,486.65 |
|
| 230,806,512.82 |
NETWORTH |
|
|
|
|
Paid-upCapital Stock | 50,741,294.71 |
|
| 50,741,294.71 |
EquityMethod | 165,853.33 |
|
| 165,853.33 |
CapitalReserve | 6,120,324.11 |
|
| 6,120,324.11 |
LegalReserve | 404,762.17 |
|
| 404,762.17 |
Transactionswithnon-controllingshareholdersNPC | 320,613,633.33 |
|
| 320,613,633.33 |
FairValue-Financial Assets | 8,585.88 |
|
| 8,585.88 |
Profit (Loss) intheCorporateInterest | (15,871,321.17) |
|
| (15,871,321.17) |
AccumulatedProfit (Loss) | (295,506,586.68) | 14,327,112.78 | 28,823,638.64 | (281,010,060.82) |
EquityValuationAdjustment (Law11.638/07) | 21,697,831.21 |
|
| 21,697,831.21 |
CNStockOptionReserve | 7,166,617.12 |
|
| 7,166,617.12 |
Discount StockOptionReserve | 5,248,080.01 |
|
| 5,248,080.01 |
SharesHeldinTreasury | (742,846.83) |
|
| (742,846.83) |
PensionPlan-Discount | (1,531,120.81) |
|
| (1,531,120.81) |
AccumulatedConversionAdjustments | (113,001,632.24) |
|
| (113,001,632.24) |
TOTALNET WORTH | (14,486,525.86) |
|
| 10,000.00 |
TOTALLIABILITIES ANDNETWORTH | 236,205,960.79 | 43,150,751.42 | 43,150,751.42 | 230,816,512.82 |
30
EXHIBIT4
NOVAPONTOCOMCOMÉRCIOELETRÔNICOS.A.
NetAssetsattributedtoRECEIVINGCOMPANIES(amountsinReais)
| Spun-offportions tobeacquiredby | |||
| CBD | ViaVarejo | Holding 1 | Holding 2 |
ASSETS |
|
|
|
|
Current |
|
|
|
|
JudicialDeposits | 3,124,729.26 |
|
|
|
RecoverablePIS | 2,328,667.19 | 1,921,454.20 |
|
|
RecoverableCOFINS | 11,268,902.70 | 9,298,314.72 |
|
|
IncomeTax tobeRefunded/Offset | 778,745.01 | 642,566.22 | 1,864,496.60 | 119,286.38 |
RecoverableINSS | 491,684.76 |
|
|
|
TotalCurrent Assets | 17,992,728.92 | 11,862,335.14 | 1,864,496.60 | 119,286.38 |
Non-current |
|
|
|
|
CreditReceivables -Globex | - | (0.04) | - | - |
CreditReceivables -CBD | 2,406,046.80 | - | - | - |
DeferredIncomeTax-TaxLoss | - | - | - | - |
ProvisionforLoss -DeferredIncomeTax-TaxLoss | - | - | - | - |
DeferredIncomeTax-TemporaryDifferences | 72,861.35 | - | - | - |
PIS | 30,751,198.61 | 16,633,719.61 | - | - |
COFINS | 139,040,230.13 | 75,208,652.27 | - | - |
EquityInterests -CNova | (40,835,126.31) | (34,288,596.34) | (2,217,641.10) | (141,879.78) |
EquityInterests -CDiscount | 27,561.04 | 23,142.56 | 1,496.76 | 95.76 |
EquityInterestat-LuxCo. | 6,480,172.86 | 5,441,296.54 | 351,920.00 | 22,515.07 |
Totalnon-current assets | 137,942,944.48 | 63,018,214.60 | (1,864,224.34) | (119,268.96) |
TOTAL ASSETS | 155,935,673.39 | 74,880,549.74 | 272.26 | 17.42 |
31
EXHIBIT4(Continued)
NOVAPONTOCOMCOMÉRCIOELETRÔNICOS.A.
NetAssetsattributedtoRECEIVINGCOMPANIES(amountsinReais)
| Spun-offportions tobeacquiredby | |||
| CBD | ViaVarejo | Holding 1 | Holding 2 |
LIABILITIES ANDNET WORTH |
|
|
|
|
LIABILITIES |
|
|
|
|
Non-current |
|
|
|
|
ObligationsExtra.COm | 5,517,241.38 | - | - | - |
NPC -Brussels(Reimbursement ofExpenses) | 61,215,986.06 | - | - | - |
OtherProvisions | 214,298.09 | - | - | - |
ProvisionsforContingencies | 4,415,252.59 | - | - | - |
IndemnificationAssets | (4,415,252.59) | - | - | - |
LoanAgreement-CBD | 65,248,393.89 | - | - | - |
LoanAgreement- ViaVarejo | - | 54,947,088.78 | - | - |
InterestwithoutLoanAgreement-CBD-NPC | 23,734,433.63 | - | - | - |
InterestwithoutLoanAgreement-ViaVarejo | - | 19,929,070.99 | - | - |
TOTALLIABILITIES | 155,930,353.05 | 74,876,159.77 | - | - |
NETWORTH. |
|
|
|
|
Paid-upCapital Stock | 26,996,096.19 | 22,275,294.71 | 1,381,517.43 | 88,386.38 |
EquityMethod | 90,872.05 | 74,981.28 | - | - |
CapitalReserve | 3,353,362.98 | 2,766,961.13 | - | - |
LegalReserve | 221,771.67 | 182,990.50 | - | - |
Transactionswithnon-controllingshareholdersNPC | 175,666,169.08 | 144,947,464.25 | - | - |
FairValue-Financial Assets | 4,704.26 | 3,881.62 | - | - |
Profit (Loss) intheCorporateInterest | (8,695,993.86) | (7,175,327.31) | - | - |
AccumulatedProfit (Loss) | (153,568,929.43) | (126,714,364.10) | (683,066.25) | (43,701.05) |
EquityValuationAdjustment (Law11.638/07) | 11,888,374.32 | 9,809,456.89 | - | - |
CNStockOptionReserve | 3,926,633.32 | 3,239,983.80 | - | - |
32
Discount StockOptionReserve | 2,875,455.11 | 2,372,624.90 | - | - |
SharesHeldinTreasury | - | - | (698,178.91) | (44,667.92) |
PensionPlan-Discount | (838,910.45) | (692,210.36) | - | - |
AccumulatedConversionAdjustments | (61,914,284.89) | (51,087,347.35) | - | - |
TOTALOF NET WORTH | 5,320.34 | 4,389.97 | 272.27 | 17.42 |
TOTALLIABILITIES ANDNETWORTH | 155,935,673.39 | 74,880,549.74 | 272.27 | 17.42 |
33
EXHIBIT 4.1.2(vii)
Agreements entered into between Nova Pontocom and Via Varejo and entered into between Nova Pontocom and CBD which will be liquidated by means of equity merger
Agreements entered into between Nova Pontocom and Via Varejo:
1. Loan Agreement dated 18 July 2011, in the amount of R$ 37,212,560.70 (thirty-seven million, two hundred and twelve thousand, five hundred and sixty reais and seventycents), with loan date established as of 6 February 2013, and payment date established as of 6 February 2014, extended to 6 February 2017, secured by promissory note in the same amount; and
2. Loan Agreement dated 18 July 2011, in the amount of R$ 26,724,856.67 (twenty-six million, seven hundred twenty-four thousand, eight hundred fifty-six reais and sixty seven cents), with loan date established as of 25 April 2013, and payment date established as of 6 February 2014, extended to 6 February 2017, secured by promissory note in the same amount.
Agreements entered into between Nova Pontocom and CBD:
3. Loan Agreement dated 18 July 2011, in the amount of R$ 44,317,348.02 (forty-four million, three hundred and seventeen thousand, three hundred forty-eight reais and two cents), with loan date established as of 6 February 2013, and payment date established as of 6 February 2014, extended to 6 February 2017, secured by promissory note in the same amount; and
4. Loan Agreement dated 18 July 2011, in the amount of R$ 31,826,691.09 (thirty-one million, eight hundred twenty-six thousand, six hundred ninety-one reais and nine cents), with loan date established as of 25 April 2013, and payment date established as of 6 February 2014, extended to 6 February 2017, secured by promissory note in the same amount.
34
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COMPANHIA BRASILEIRA DE DISTRIBUIÇÃO | ||
Date: December 7, 2015 | By: /s/ Ronaldo Iabrudi Name: Ronaldo Iabrudi Title: Chief Executive Officer | |
By: /s/ Daniela Sabbag Name: Daniela Sabbag Title: Investor Relations Officer |
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.