4 results
20-F
2023 FY
Equifax do Brasil S.A.
10 May 24
Annual report (foreign)
4:21pm
FOR THE YEARS ENDED DECEMBER 31, 2023, DECEMBER 31, 2022 and DECEMBER 31, 2021
(In thousands) | Note | December 31, 2023 | December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||
Operating activities | Profit (loss) | R$ | 217,833 | R$ | 52,028 | (229,964) | ||||||||||||||||||||||
Adjustments to reconcile profit (loss) with the net cash generated by (used in) operating activities: | Deferred tax | 9 | (122,748) | 22,681 | (119,706) | |||||||||||||||||||||||
Depreciation and amortization | 5 | 74,391 | — | — | ||||||||||||||||||||||||
(Gains) losses on equity investments | 1.7 | (37,983) | (66,709) | 352,078 | ||||||||||||||||||||||||
Non-cash management services | (92) | 19 | 11 | |||||||||||||||||||||||||
Non-cash finance costs | 17 | 3,455 | 877 | — | ||||||||||||||||||||||||
Changes in operating assets: | Trade receivable | 8 | 9,484 | — | — | |||||||||||||||||||||||
Current tax assets | 9 | 13,654 | — | — | ||||||||||||||||||||||||
Dividends receivable and other current assets | 16,867 | (8,184) | (3,524) | |||||||||||||||||||||||||
Other tax assets | 9 | (3,503) | — | — | ||||||||||||||||||||||||
Long-term prepaid expenses and other noncurrent assets | (24,073) | — | 116 | |||||||||||||||||||||||||
Changes in operating liabilities: | Trade payables and other current liabilities | 12 | (16,911) | 1,841 | 821 | |||||||||||||||||||||||
Related parties and other noncurrent liabilities | 14 | 4,044 | 145 | (476) | ||||||||||||||||||||||||
Cash generated by (used in) operating activities | 134,418 | 2,698 | (644) | |||||||||||||||||||||||||
Investing activities | Acquisitions of property and equipment | (1,990) | — | — | ||||||||||||||||||||||||
Acquisitions of intangible assets | 11 | (110,793) | — | — | ||||||||||||||||||||||||
Payments for business combinations, net of cash acquired | 2 | (1,317,120) | — | — | ||||||||||||||||||||||||
Sale of equity investment | 1.7 | 33,787 | — | — | ||||||||||||||||||||||||
Net cash (used in) investing activities | (1,396,116) | — | — | |||||||||||||||||||||||||
Financing activities | Capital increase | 17 | 2,497,252 | — | 280 | |||||||||||||||||||||||
Return of capital to common shareholders | 17 | (1,075,000) | — | — | Dividends paid | — | — | (2,910) | ||||||||||||||||||||
Net cash generated by (used in) financing activities | 1,422,252 | — | (2,630) | |||||||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | R$ | 160,554 | R$ | 2,698 | (3,274) | |||||||||||||||||||||||
Cash and cash equivalents at beginning of year | R$ | 3,541 | R$ | 843 | 4,117 | |||||||||||||||||||||||
Cash and cash equivalents at end of year | R$ | 164,095 | R$ | 3,541 | 843 | |||||||||||||||||||||||
20-F
2023 FY
Equifax do Brasil S.A.
10 May 24
Annual report (foreign)
4:21pm
The key assumptions used in the estimation of the recoverable amount are set out below. The values assigned to the key assumptions represent management’s assessment of future trends in the relevant industries and have been based on historical data from both external and internal sources. Considering the early stage of the acquired company’s operations and its business growth profile, the discounted cash flow projections included specific estimates for ten years and a terminal growth rate thereafter for which management believes these projections are reliable. The projections are based on the approved budget that takes into consideration historical information adjusted to reflect events in place at the date of the test. The terminal growth rate was determined based on management’s understanding of the industry’s development trends. The Company has considered and assessed reasonably possible changes for the key assumptions and has not identified any instances that could cause the carrying amount of the Boa Vista CGU and Konduto CGU to exceed its recoverable amount.
2022 | BoaVista | Konduto | ||||||
Revenue (% annual growth rate) | 3.80 | % | 16.90 | % | ||||
Budgeted gross margin (%) | 90.90 | % | 73.40 | % | ||||
Annual capital expenditure (in R$ thousands) | 166,438 | 6,704 | ||||||
Long-term growth rate (%) | 3.15 | % | 3.20 | % | ||||
Pre-tax discount rate (%) | 15.40 | % | 17.60 | % |
20-F
2023 FY
Equifax do Brasil S.A.
10 May 24
Annual report (foreign)
4:21pm
The following table presents certain macroeconomic indicators about the Brazilian economy for the periods indicated.
For the years ended December 31, | ||||||||||||
2023 | 2022 | 2021 | ||||||||||
Real GDP growth as compared to the prior year (1) | 2.9 | % | 2.90 | % | 4.62 | % | ||||||
IGP-M inflation (2) | 3.18 | % | 5.45 | % | 17.78 | % | ||||||
IPCA inflation (3) | 4.62 | % | 5.79 | % | 10.06 | % | ||||||
SELIC rate (4) | 11.75 | % | 13.75 | % | 9.25 | % | ||||||
Long-term interest rate (TJLP) (5) | 6.55 | % | 7.20 | % | 5.32 | % | ||||||
Exchange rate at the end of the period —US$1.00/R$ | 0.2061 | 0.1892 | 0.1795 | |||||||||
Average exchange rate —US$1.00/R$ (6) | 0.2004 | 0.1939 | 0.1855 |
20-F
2023 FY
Equifax do Brasil S.A.
10 May 24
Annual report (foreign)
4:21pm
Financial income and expenses in the period from January 1, 2023 to August 7, 2023 and the year ended December 31, 2022 were as follows:
Period ended August 7, 2023 | Year ended December 31, 2022 | Year ended December 31, 2021 | ||||||||||||||
Financial income | Discounts obtained | 479 | 411 | 27 | ||||||||||||
Interest and fines on accounts receivable | 606 | 1,238 | 1,019 | |||||||||||||
Change in fair value of contingent consideration (*) | — | — | 79,538 | |||||||||||||
Interest income arising from financial assets | 97,320 | 149,994 | 54,265 | |||||||||||||
Interest income on long term receivables | 441 | 768 | 961 | |||||||||||||
Other financial income | 3,895 | 2,483 | 1,148 | |||||||||||||
Total financial income | 102,741 | 154,894 | 136,958 | |||||||||||||
Financial expenses | Discounts granted | (448) | (807) | (894) | ||||||||||||
Interest and fines – liabilities | (356) | (136) | (174) | |||||||||||||
Interest on leases | (702) | (1,940) | (2,263) | |||||||||||||
Interest on bank loans and borrowings | — | (182) | (3,060) | |||||||||||||
Interest on debentures | — | (4,687) | (7,463) | |||||||||||||
Change in fair value of contingent consideration (*) | — | (20,676) | — | |||||||||||||
Unwinding of the time value of money (**) | (12,033) | (1,218) | (470) | |||||||||||||
Other financial expenses | (5,467) | (2,623) | (1,905) | |||||||||||||
Total financial expenses | (19,006) | (32,269) | (16,229) | |||||||||||||
Financial income (expenses) | 83,735 | 122,625 | 120,729 | |||||||||||||
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