(A free translation of the original report in Portuguese
on financial statements prepared in conformity with
accounting practices adopted in Brazil)
panhia Brasileira de
Distribuição
Financial Statements at
December 31, 2002 and 2001
and Report of Independent Accountants
(A free translation of the original opinion in Portuguese
expressed on financial statements prepared in conformity with
accounting practices adopted in Brazil)
Report of Independent Accountants
February 14, 2003
To the Board of Directors and Shareholders
Companhia Brasileira de Distribuição
1
We have audited the accompanying balance sheets of Companhia Brasileira de
Distribuição and the consolidated balance sheets of Companhia Brasileira de Distribuição
and its subsidiary companies as of December 31, 2002 and 2001, and the related statements
of income, of changes in shareholders' equity and of changes in financial position of
Companhia Brasileira de Distribuição and the related consolidated statements of income
and of changes in financial position for the years then ended. These financial statements are
the responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements.
2
We conducted our audits in accordance with approved Brazilian auditing standards which
require that we perform the audit to obtain reasonable assurance about whether the
financial statements are fairly presented in all material respects. Accordingly, our work
included, among other procedures: (a) planning our audits taking into consideration the
significance of balances, the volume of transactions and the accounting and internal control
systems of the Company, (b) examining, on a test basis, evidence and records supporting
the amounts and disclosures in the financial statements and (c) assessing the accounting
principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation.
3
In our opinion, the financial statements audited by us present fairly, in all material respects,
the financial position of Companhia Brasileira de Distribuição and of Companhia
Brasileira de Distribuição and its subsidiary companies at December 31, 2002 and 2001
and the results of its operations, the changes in shareholders' equity and the changes in its
financial position for the years then ended of Companhia Brasileira de Distribuição, as well
as the consolidated results of their operations and of their changes in consolidated financial
position for these same years, in conformity with accounting practices adopted in Brazil.
2
February 14, 2003
Companhia Brasileira de Distribuição
4
Our audits were performed for the purpose of issuing an opinion on the financial
statements referred to in the first paragraph, taken as a whole. The statements of cash flows
and of added value, which provide supplementary information on the Company and its
subsidiaries, are not a required component of the financial statements. These financial
statements at December 31, 2002 and 2001 were submitted to the audit procedures
described in the second paragraph to these statements and, in our opinion, they are fairly
stated in all material respects in relation to the basic financial statements taken as a whole.
PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5
Henrique Luz
Partner
Contador CRC 1RJ045789/T-2 "T" SP 002332
3
(A free translation of the original in Portuguese
prepared in conformity with accounting practices
adopted in Brazil)
Companhia Brasileira de Distribuição
Balance Sheet at December 31
In thousands of reais
Parent company
Assets
Current assets
Cash and banks
Financial investments
Trade accounts receivable
Inventories
Taxes recoverable
Advances to suppliers and employees
Prepaid expenses
Other
Long-term receivables
Trade accounts receivable
Deferred income tax and others
Current accounts with related parties
Judicial deposits
Prepaid expenses
Permanent assets
Investments
Property and equipment
Deferred charges
Total assets
Consolidated
2002
2001
2002
2001
119,440
991,454
1,047,121
868,727
269,834
12,151
22,736
139,772
119,008
910,671
906,659
618,437
73,370
23,275
16,055
58,443
141,463
993,695
1,087,891
980,794
347,891
12,351
24,138
144,799
137,418
910,671
975,587
686,103
77,429
23,307
17,171
59,045
3,471,235
2,725,918
3,733,022
2,886,731
18,774
32,876
657,977
112,166
4,655
36,683
39,702
464,019
80,422
1,315
285,735
257,753
258
119,209
4,655
223,798
105,067
218
81,558
1,315
826,448
622,141
667,610
411,956
659,902
3,374,143
760,444
133,180
2,883,251
764,151
271,088
3,741,504
774,466
123,884
3,006,413
852,155
4,794,489
3,780,582
4,787,058
3,982,452
9,092,172
7,128,641
9,187,690
7,281,139
Parent company
Liabilities and shareholders’ equity
Current liabilities
Suppliers
Loans and financings
Debentures
Salaries and payroll charges
Taxes and social contributions payable
Dividends proposed
Current accounts with related parties
Provision for unsecured liabilities of subsidiary companies
Other
Long-term liabilities
Loans and financings
Debentures
Provision for contingencies
Other
Shareholders’ equity
Capital
Capital reserves
Revenue reserves
Total liabilities and shareholders’ equity
Net equity per thousand shares - R$
The accompanying notes are an integral part of these financial statements.
4
Consolidated
2002
2001
2002
2001
1,335,926
1,482,263
79,991
85,971
30,275
59,441
2,373
89,018
50,253
736,951
1,150,271
12,984
81,116
25,771
60,774
29,541
79,745
74,789
1,409,616
1,486,120
79,991
98,030
35,534
59,441
1,568
813,525
1,241,594
12,984
101,267
40,350
60,774
223
59,108
109,803
3,215,511
2,251,942
3,229,408
2,380,520
873,416
476,258
907,370
27,577
734,079
124,141
587,239
27,350
873,416
476,258
988,991
27,577
734,079
124,141
611,159
27,350
2,284,621
1,472,809
2,366,242
1,496,729
2,749,774
344,242
498,024
2,252,361
348,292
803,237
2,749,774
344,242
498,024
2,252,361
348,292
803,237
3,592,040
3,403,890
3,592,040
3,403,890
9,092,172
7,128,641
9,187,690
7,281,139
31.74
30.11
Companhia Brasileira de Distribuição
Statement of Income
Years Ended December 31
(A free translation of the original in Portuguese
prepared in conformity with accounting
practices adopted in Brazil)
In thousands of reais
Parent company
2002
2001
Consolidated
2002
2001
Gross sales
Taxes on sales
9,439,263
(1,458,296)
8,543,616
(1,331,763)
11,154,079
(1,699,410)
9,532,606
(1,477,753)
Net sales
Cost of sales
7,980,967
(5,820,503)
7,211,853
(5,183,894)
9,454,669
(6,809,588)
8,054,853
(5,807,652)
Gross profit
2,160,464
2,027,959
2,645,081
2,247,201
Operating expenses (income)
Selling
General and administrative
Depreciation and amortization
Taxes and charges
Financial expenses
Financial income
Equity in the results of investees
1,196,136
296,284
379,934
58,150
621,529
(328,377)
(351,788)
1,126,493
307,869
306,100
37,383
407,841
(485,205)
16,770
1,513,825
350,066
413,617
71,456
601,737
(438,788)
10,357
1,287,991
324,740
330,756
43,118
419,341
(422,453)
(2,995)
1,871,868
1,717,251
2,522,270
1,980,498
Operating profit
Non-operating income, net
288,596
4,652
310,708
4,485
122,811
4,480
266,703
1,851
Income before income tax
Income tax (expense) benefit
293,248
(48,126)
315,193
(64,460)
127,291
117,831
268,554
(17,821)
Net income for the year
245,122
250,733
245,122
250,733
2.17
2.22
Net income for the year per thousand shares - R$
The accompanying notes are an integral part of these financial statements.
5
Companhia Brasileira de Distribuição
(A free translation of the original in Portuguese
prepared in conformity with accounting practices
adopted in Brazil)
Statement of Changes in Shareholders’ Equity
In thousands of reais
Capital reserves
At January 1, 2001
Capital increase
Conversion of debentures
Subscription
Appropriation of reserve
Realization of reserve
Net income for the year
Legal reserve
Dividends proposed (R$ 0,53753 per thousand shares)
Retention of earnings reserve
At December 31, 2001
Capital increase
Capitalization of reserves
Subscription
Appropriation of reserve
Realization of reserve
Net income for the year
Legal reserve
Dividends proposed (R$ 0,52516 per thousand shares)
Retention of earnings reserve
At December 31, 2002
Revenue reserves
Capital
Fiscal
investment
incentive
Share
warrants
Legal
Expansion
Unrealized
earnings
Retention
of earnings
2,001,033
4,050
344,242
51,386
377,910
23,664
160,318
Retained
earnings
2,962,603
171,669
79,659
171,669
79,659
112,984
(112,984)
(4,899)
12,537
182,321
2,252,361
494,944
2,469
Total
4,050
344,242
63,923
(4,050 )
490,894
18,765
229,655
250,733
(60,774)
3,403,890
(490,894)
2,469
164,089
(164,089)
(4,898)
12,256
178,323
2,749,774
4,899
250,733
(12,537 )
(60,774 )
(182,321 )
344,242
76,179
The accompanying notes are an integral part of these financial statements.
6
164,089
13,867
243,889
4,898
245,122
(12,256 )
(59,441 )
(178,323 )
245,122
(59,441)
3,592,040
Companhia Brasileira de Distribuição
(A free translation of the original in Portuguese
prepared in conformity with accounting practices
adopted in Brazil)
Statement of Changes in Financial Position
Years Ended December 31
In thousands of reais
Parent company
Financial resources were provided by
Operations
Net income for the year
Expenses (income) not affecting working capital
Deferred income tax
Interest and indexation charges on long-term items
Equity in the results of investees
Depreciation and amortization
Residual value of property and equipment disposals
Provision for contingencies
Shareholders
Capital increase
Third parties
Loans, financings and other liabilities
Debentures
Transfer to current assets
Initial working capital of a subsidiary
Net working capital of subsidiary companies merged during
the year
Consolidated
2002
2001
2002
2001
245,122
250,733
245,122
250,733
13,667
204,227
(361,061)
379,934
1,085
199,057
28,631
32,103
(26,538)
306,100
1,996
41,239
(152,686)
198,536
10,357
413,617
1,136
239,767
(18,008)
112,314
(2,995)
330,756
2,363
64,565
682,031
634,264
955,849
739,728
2,469
35,348
2,469
35,348
667,673
401,490
24,210
378,411
540,456
401,490
31,685
379,930
13,723
Total funds provided
Financial resources were used for
Long-term receivables
Permanent assets
Investments
Property and equipment
Deferred charges
Transfer from long-term to current liabilities
Dividends paid and proposed
Initial working capital of a subsidiary acquired
Total funds used
117,459
6,695
1,895,332
1,054,718
1,931,949
1,175,424
187,443
26,756
95,322
35,138
473,126
670,375
263,773
717,162
723,199
59,441
31,568
499,540
28,177
211,317
60,774
755,446
59,441
43,402
60,671
507,589
28,394
215,304
60,774
87,593
2,113,584
858,132
1,934,546
995,463
(218,252)
Increase (decrease) in working capital
7
196,586
6,695
(2,597)
179,961
Companhia Brasileira de Distribuição
Statement of Changes in Financial Position
Years Ended December 31
In thousands of reais
(continued)
Parent company
Consolidated
2002
2001
2002
2001
3,471,235
2,725,918
2,725,918
2,559,334
3,733,022
2,886,731
2,886,731
2,685,105
745,317
166,584
846,291
201,626
3,215,511
2,251,942
2,251,942
2,281,944
3,229,408
2,380,520
2,380,520
2,358,855
848,888
21,665
Changes in working capital
Current assets
At the end of the year
At the beginning of the year
Current liabilities
At the end of the year
At the beginning of the year
Increase (decrease) in working capital
963,569
(30,002)
(218,252)
196,586
The accompanying notes are an integral part of these financial statements.
8
(2,597)
179,961
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
(A free translation of the original notes
in Portuguese to financial statements
prepared in conformity with accounting
practices adopted in Brazil)
All amounts in thousands of reais unless otherwise indicated
1
Operations
The Company operates primarily as a retailer of food, apparel, home appliances and other
products through its chain of hypermarkets, supermarkets, specialized stores and
departments primarily under the trade names "Pão de Açúcar", "Extra", "Barateiro",
"Comprebem" and "Eletro". At December 31, 2002, the Company had 500 stores in
operation (December 31, 2001 - 443 stores), of which 415 are owned by the Company, 18
stores are operated by the subsidiary company Novasoc Comercial Ltda. ("Novasoc"), 56
stores are operated by the parent company Sé Supermercados Ltda. ("Sé") and 11 stores are
operated by the subsidiary company Companhia Pernambucana de Alimentação ("CIPAL").
2
Significant Accounting Policies and Consolidation Criteria
The financial statements have been prepared in accordance with the accounting practices
adopted in Brazil, and in conformity with accounting principles prescribed by Brazilian
corporate legislation and with the rules and regulations of the Brazilian Securities
Commission (CVM).
Certain assets, liabilities and other transactions are recorded on the basis of estimates.
Accordingly, the financial statements of the parent company and the consolidated financial
statements include various estimates, amongst which those relating to the selection of useful
lives of permanent assets, provisions necessary for contingent liabilities, provisions for
income tax and others; actual results may differ from those estimated.
(a)
Determination of net income
Net income is determined on the accrual basis of accounting.
(b)
Current assets and long-term receivables
Inventories purchased by the distribution centers are valued at average cost and those
purchased directly by stores at the last purchase price which approximates the First-In, FirstOut (FIFO) basis, including storage and handling costs, which are all lower than realizable
amounts.
Other assets and receivables are stated at cost, including, when applicable, income and
indexation accruals, net of provisions to reflect realizable amounts.
9
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
(c)
Permanent assets
Permanent assets are shown at cost (cost incurred up to December 31, 1995 is remeasured to
that date), combined with the following:
. investments in subsidiaries are accounted for by the equity method (Note 7).
. depreciation of property and equipment is calculated on the straight-line basis at the rates
listed in Note 8, which reflect the economic useful lives of the assets; and
. the rate of amortization of goodwill on business combinations is matched to expected
future profitability; premiums for asset purchases on combinations, deferred foreign
exchange losses and pre-operating expenses are amortized over the periods detailed in
Notes 7 and 9.
(d)
Current and long-term liabilities
These liabilities are stated at known or estimated amounts including, when applicable,
accrued charges, indexation charges and foreign exchange variations.
(e)
Consolidated financial statements
The consolidated financial statements were prepared in conformity with the consolidation
accounting principles prescribed by corporate legislation and Brazilian Securities
Commission (CVM) Instruction 247, and include the financial statements of the Company
and its subsidiaries Novasoc, Mogi Supermercados S.A.("Mogi"), ABC Supermercados
S.A.("ABC"), Sé and CIPAL.
The investment accounts, intercompany asset and liability balances, income and expenses,
and unrealized results arising from operations among consolidated companies were
eliminated upon consolidation.
In conformity with CVM Instruction 247, the financial statements of the other subsidiary
companies Ponte do Ó Veículos e Peças Ltda. ("Ponte do Ó"), Supermercados Mirambava
Ltda. ("Mirambava") and Companhia Progresso de Alimentos ("Progresso") were not
consolidated, since management intends to terminate the operations of these companies, the
management of which are already performed by the Company (Note 7(c)).
In addition to the companies mentioned above, the financial statements of the wholly-owned
subsidiary CBD Technology, Inc. ("CBD Tech") were not consolidated because they are not
material in relation to the consolidated financial statements.
10
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
3
Financial Investments
The financial investments at December 31, 2002 and 2001 earn interest at the Interbank
Deposit Certificate (CDI) rate.
4
Trade Accounts Receivable
Parent company
Current
Credit card
Customer credit financing
Sales vouchers and others
Installment sales (post-dated checks)
Accounts receivable - Parent and
subsidiary companies
Allowance for doubtful accounts
2002
2001
2002
2001
542,637
225,018
115,287
103,735
443,774
287,811
86,735
81,318
644,089
233,809
124,007
116,310
517,302
301,834
91,855
106,359
90,508
(30,064)
46,798
(39,777)
863
(31,187)
(41,763)
1,047,121
Long-term
Customer credit financing and others
Accounts receivable - Paes Mendonça
Consolidated
906,659 1,087,891
975,587
18,774
36,683
19,190
266,545
38,322
185,476
18,774
36,683
285,735
223,798
Credit card sales relate to sales through co-branded third party credit cards, and may be paid
in installments in up to 12 months.
Customer credit financing accrues interest from 3.99% to 7.49% per month (2001 - 2.5% to
7.9%) and with payment terms of up to 24 months for installment plans.
Installment sales represent post-dated checks which accrue interest of up to 6.9% per month
(2001 - 6.9%) for settlement in up to 60 days.
Accounts receivable from subsidiary companies (Novasoc, CIPAL and Sé) relate to the sale
of merchandise supplied to the stores by the Company.
Accounts receivable - Paes Mendonça - relate mainly to payments by Novasoc of certain of
Paes Mendonça’s obligations under the terms of the lease agreement with Paes Mendonça
S.A. ("Paes Mendonça"). Pursuant to the contract, the receivables are secured based on the
location rights of stores currently operated by Novasoc.
11
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
The allowance for doubtful accounts is estimated based on average prior-year effective
losses complemented by management’s estimate of probable future losses:
Parent company
2002
Customer credit financing
Installment sales (post-dated checks)
2001
Consolidated
2002
2001
(27,826)
(2,238)
(37,701)
(2,076)
(28,579)
(2,608)
(39,355)
(2,408)
(30,064)
(39,777)
(31,187)
(41,763)
The policies for establishing this allowance are as follows:
•=
5
Customer credit financing - based on historical loss indices over the past 12 months; the
write-offs of receivables overdue for more than 180 days are charged against the
allowance.
•=
Installment sales (post-dated checks) - based on the historical average indices of checks
returned and recoveries over the past 12 months; the write-off of returned checks is
effected after all legal procedures have been completed and are charged against the
allowance.
•=
Credit card and sales vouchers - an allowance for doubtful accounts is not required as
credit risks are substantially assumed by third parties.
Inventories
Parent company
Hypermarkets, supermarkets, specialized
stores and departments
Distribution centers
Consolidated
2002
2001
2002
2001
534,817
333,910
409,773
208,664
629,680
351,114
464,013
222,090
868,727
618,437
980,794
686,103
12
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
6
Balances and Transactions with Related Parties
Pão de Açúcar
S.A. Indústria
e Comércio
Balances
Accounts receivable
Current accounts receivable (payable)
Transactions
Services rendered and rents
Sales, net
Financial income, net
Novasoc
Sé
863
(1,568)
46,307
19,727
39,610
637,992
3,728
(805)
6,064
23,013
144,386
33,268
3,852
165,466
2,365
527
7,972
(58)
14
CIPAL
2002
2001
Other
Total
Total
258
90,508
655,604
46,798
434,478
33,456
317,824
35,589
30,304
307,335
91,873
Transactions with related parties are carried out at normal market prices and conditions. The current account balances on trade commission contracts with related parties bear
financial charges comparable to the administration fee on such trade commissions. Sales of goods relate to the supply of stores, mainly of Novasoc and Sé, by the Company’s
distribution center and were carried out substantially at cost.
13
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
7
Investments
(a)
Information on investments at December 31, 2002
Shares/
quotas
held
Holding - %
Capital
Novasoc
1,000
CBD Tech
1,000
Sé
996,806,689
10,00
99,99
99,99
10
25,843
996,807
14
Shareholders’
equity
(unsecured
liabilities)
(89,018 )
19,007
640,659
Net income
(loss)
for the year/
period
(9,273 )
(6,369 )
247,827
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
(b)
Changes in investments
Parent company
Novasoc
At January 1, 2001
Additions
Cost
Goodwill
Equity accounting gain (loss)
Amortization of goodwill
Mogi
Progresso
Ponte do Ó
Mirambava
ABC
68,758
Sé
8,862
1,007
14,021
(43,308)
CBD Tech
2,310
7,653
23,543
(3,278)
50
1,644
Other
Total
Total
780
78,400
480,829
4,883
8,250
23,318
(16,770)
(3,326)
2,995
(48 )
Amounts transferred following
merger to:
Property and equipment
Deferred charges
Other liabilities (assets), net
Transfer to provision
for unsecured liabilities
43,308
43,308
89,023
15,028
9,963
1,646
16,740
86,740
(9,273)
53,219
57,748
2,267
780
136,507
249,879
247,827
(544)
(3,730)
Amounts transferred following
merger to:
Investments
Property and equipment
Deferred charges
Other liabilities (assets), net
Transfer to provision
for unsecured liabilities
22,497
23,318
2,995
(5,600)
(44,022)
(342,426)
(13,707)
At December 31, 2001
Additions
Cost
Goodwill
Equity accounting gain (loss)
Write-off
Amortization of goodwill
Consolidated
(258 )
(6,446)
123,884
223,247
249,879
351,788
(544)
(3,988)
13,894
249,879
(10,357)
(63,084)
(141,599)
(98,250)
(29,626)
(74,314)
429
(2,701)
6,446
(15,028)
(48,028)
(84,038)
133,180
(10,080)
(362)
479
(1,338)
(50 )
(37,976)
(91,871)
(14,641)
9,273
9,273
At December 31, 2002
19,007
15
640,659
236
659,902
271,088
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
(i)
Novasoc: On May 10, 1999, the Company acquired 10% of the quotas of Novasoc which, on
April 30, 1999, had leased 25 stores from the Paes Mendonça S.A. chain of stores
(December 31, 2002 - 18 stores). Paes Mendonça S.A. continues to exist and is by contract
fully and solely responsible for all and any tax, labor, social security, commercial and other
liabilities incurred prior to the lease agreement. The agreement term is five years and may be
extended twice for similar periods through notification by Novasoc to Paes Mendonça.
During the legal term of the contract, the shareholders of Paes Mendonça cannot sell their
shares without the prior and express approval of Novasoc.
Under the bylaws of Novasoc, the appropriation of its net income need not be proportional
to the holding in the company. As from the quotaholders' meeting on December 29, 2000 it
was agreed that the Company would participate prospectively in 99.98% of Novasoc's
results.
(ii)
During 2002, the Company acquired the following companies:
•=
On June 30, 2002, the Company acquired CIPAL through its subsidiary company Mogi,
which has 12 stores located in Recife, Pernambuco, previously franchised under the
brand Comprebem, for R$ 6,709. In this operation goodwill of R$ 1,948 was
determined. Upon merger of Mogi, as described below, the investment held in CIPAL
was transferred to the subsidiary Sé.
•=
On June 30, 2002, the Company acquired the Sé chain, which has 60 stores located in 20
municipalities of the State of São Paulo for R$ 386,386, of which R$ 124,422 refer to
debt of Sé assumed by the Company and R$ 11,386 refer to the adjustment of price
calculated based on the working capital amount. In this operation goodwill of
R$ 249,879 was determined.
The goodwill on acquisition of these companies was based on appraisal reports of
independent valuers and was supported principally by their expected future profitability and
the appreciation of property and equipment, and is being amortized based on the projected
profitability of the stores acquired and/or in conformity with the depreciation terms of the
relevant assets, when applicable, over a period of up to ten years. Upon the merger of the
companies, that part of goodwill which was related to expected future profitability was
transferred to Deferred charges (Note 9).
16
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
(iii)
At December 31, 2002, as Novasoc’s liabilities exceed its assets (net unsecured liabilities)
and, in view of the Company’s commitment to assure the continuity of its operations and
future economic feasibility, the Company recorded R$ 89,018 (2001 - R$ 79,745) as a
"Provision for unsecured liabilities of subsidiary companies" in recognition of its obligation
to the creditors of this subsidiary.
(c)
Investments merged
The Extraordinary General Meeting held on November 29, 2002 approved the merger of the
following subsidiaries: ABC, Mogi, Progresso, Ponte do Ó and Mirambava, the net equities
of which, at the date of merger, are summarized below:
Current assets
Long-term receivables
Permanent assets
ABC
Mogi
276,422
366,438
100,743
84,038
Current liabilities
Long-term liabilities
(56,404)
(571,815)
Shareholders’ equity
115,384
Progresso
6,446
1,007
Ponte do Ó
Mirambava
Total
5
50
360,515
366,438
110,885
2,689
(484)
90,484
1,007
17
2,210
(56,888)
(571,815)
50
209,135
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
8
Property and Equipment
Parent company
2002
Accumulated
Cost depreciation
Land
747,226
Buildings
1,728,060
Improvements and renovations
862,263
Equipment
729,953
Installations
297,500
Furniture and fixtures
110,575
Vehicles
22,689
Construction in progress
9,887
Other
11,089
4,519,242
Consolidated
2001
2002
Accumulated
Cost depreciation
Net
Net
2,239
747,226
1,514,515
592,828
328,285
111,434
55,633
5,485
9,887
8,850
700,567
1,180,901
493,087
303,383
135,390
40,145
8,434
12,746
8,598
795,575
1,787,722
1,100,497
802,549
377,486
124,332
26,896
13,610
11,119
1,145,099
3,374,143
2,883,251
5,039,786
213,545
269,435
401,668
186,066
54,942
17,204
18
2001
Net
Net
2,258
795,575
1,568,894
761,338
369,745
152,599
64,177
6,705
13,610
8,861
702,370
1,188,966
557,866
327,651
148,448
47,540
9,431
14,209
9,932
1,298,282
3,741,504
3,006,413
218,828
339,159
432,804
224,887
60,155
20,191
Annual
depreciation
rate - %
3.33
5 to 20
10 to 33
20
10
20
10 to 20
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
Investments in property and equipment
Parent company
Investments (i)
Capitalized interest (ii)
Mergers (iii)
Consolidated
2002
2001
2002
2001
636,181
34,194
424,251
31,267
682,968
34,194
432,300
31,267
670,375
455,518
717,162
463,567
63,084
44,022
733,459
499,540
44,022
717,162
507,589
(i)
The investments made by the Company relate to purchases of operating assets, land and
buildings to expand activities, construction of new stores and distribution centers, expansion
of distribution centers, remodeling of various stores, new equipment and assets of acquired
companies.
(ii)
In conformity with CVM Resolution 193, interest and financial charges on loans and
financing obtained from third parties during the construction or remodeling of stores of the
Company, directly or indirectly attributable to the process of acquisition, construction and
operating expansion are capitalized. The appropriation of capitalized interest and financial
charges to results is consistent with the depreciation terms of the financed assets.
(iii)
Mergers (see Note 7 (c)).
Construction in progress relates to remodeling and construction of various stores and
distribution centers of the Company, Novasoc and Sé.
19
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
9
Deferred Charges
Parent company
Goodwill
At January 1, 2001
Additions
Disposals
Amortization
Transfer from investments
328,013
1,864
(150)
(58,493)
342,426
At December 31, 2001
Amortization
Transfer from merger
At December 31, 2002
Foreign
exchange
losses
40,298
Pre-operating
expenses
and other
Subtotal
(17,910)
145,579
26,313
(61)
(43,728)
513,890
28,177
(211)
(120,131)
342,426
613,660
22,388
128,103
(86,005)
141,599
(17,910)
669,254
4,478
Goodwill
Pre-operating
expenses
and other
Subsidiaries
Consolidated
Subtotal
Total
(1,724)
31,048
2,350
(95)
(8,727)
31,048
67,502
(95)
(10,451)
544,938
95,679
(306 )
(130,582 )
342,426
764,151
63,428
24,576
88,004
852,155
(41,391)
(145,306)
141,599
(2,586)
(60,842)
(10,554)
(13,140)
(60,842)
(158,446 )
80,757
86,712
760,444
14,022
14,022
774,466
20
65,152
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
(a)
Goodwill
Goodwill relating to the expected future profitability of the subsidiaries that were merged by
the Company during the year was transferred from the Investments to Deferred charges, and
will continue to be amortized over the periods consistent with the earnings projections on
which they were originally based.
(b)
Foreign exchange losses
As permitted by Federal Law 9816/99 and CVM Resolution 294/99, the Company opted to
defer part of the net foreign exchange losses which arose in the first quarter of 1999, in the
amount of R$ 71,639, which is being amortized over the maximum period of four years.
(c)
Pre-operating expenses and other
Pre-operating expenses, which include employee salaries, training and rent, are deferred
until the stores in construction and/or under remodeling start operating normally. These
expenses are amortized over a period of up to five years. As from the year ended December
31, 2002, these expenses will be fully recognized in the results of the year, in which they are
incurred.
21
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
10
Loans and Financings
Parent company
Annual financial charges
Short-term
Local currency
BNDES (i)
Working capital
Exchange variation + 3.5%
Long-term Interest Rate (TJLP) +
1% to 3.5%
Exchange variation /TJLP + 4% to
4.1%
Consolidated
2002
2001
2002
2001
40,933
24,639
40,933
24,639
142,326
129,870
142,326
129,870
14,270
14,270
21.9 % and TJLP + 3.5% (2001 20.6%)
3,063
1,965
3,063
3,165
Foreign currency with swap for Reais (ii)
Working capital
96.5% to 108.9% of CDI (2001 96% to 104.5% of CDI)
1,264,294
972,452
1,268,151
1,062,575
17,377
21,345
17,377
21,345
1,482,263
1,150,271
1,486,120
1,241,594
40,904
239,821
45,626
51,662
363,911
40,904
239,821
45,626
51,662
363,911
2,973
1,397
2,973
1,397
544,092
317,109
544,092
317,109
873,416
734,079
873,416
734,079
Imports
Long-term
Local currency
BNDES (i)
Working capital
Exchange variation (2001 - LIBOR
+ 1.2% to 2.7%)
Exchange variation + 3.5%
TJLP + 3.5%
Exchange variation /TJLP + 4% to
4.1%
TJLP + 3.5%
Foreign currency with swap for Reais
Working capital
100% to 105% of CDI (2001 96.5% to 104.1% of CDI)
22
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
Long-term financings fall due as follows:
Parent company and
consolidated
2003
2004
2005
2006
2007
2002
2001
540,236
204,692
72,566
55,922
471,477
101,566
82,665
55,089
23,282
873,416
734,079
(i)
The contracts with BNDES require that the Company maintain certain capitalization and
current liquidity levels and use the funds in the investment program for the
construction/remodeling of stores and purchase of equipment. An effective control of the
follow-up of the restrictive clauses is kept, and all clauses have been complied with. The
parent company has provided a joint responsibility surety until the contracts are settled.
(ii)
The working capital loans are mainly funds obtained with prefixed financial charges and
used to finance direct consumer credit transactions, mainly customer credit financing and
post-dated checks, as well as for financing of acquisitions, constructions and operating
expansion.
In order to reduce the impacts of exchange variations on loans in foreign currency, the
Company contracts swap transactions linked to the CDI interest rate.
Financings are guaranteed by promissory notes and shareholders’ sureties.
23
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
11
Debentures
(a)
Composition of outstanding debentures
Type
2nd issue - 1st series
2 nd series
th
4 issue - sole series
5 th issue - 1 st series
Annual
Number financial
outstanding charges
Subordinate
Subordinate
Floating
Floating
1,850
25,000
99,908
40,149
Long-term liabilities
Current liabilities
IGP-M + 13%
IGP-M + 13%
TJLP + 3.5%
CDI + 1.45%
2002
2001
2,312
16,175
115,115
422,647
1,910
25,809
109,406
556,249
137,125
(476,258)
(124,141)
79,991
12,984
2002
2001
Long-term debentures by year of maturity:
2003
2004
2005
2007
37,328
37,440
401,490
476,258
(b)
53,117
35,512
35,512
124,141
Fifth issue
The Extraordinary General Meeting of the Company held on October 4, 2002 approved the
5th issue of debentures, in the amount of up to R$ 600,000. The 5th issue will be placed in an
undetermined number of series and public placement of debentures, with the following main
characteristics:
(i)
the 1st series of the 5th issue will be comprised of up to 50,000 debentures, and the other
series will be comprised of up to 10,000 debentures;
(ii)
date of the start of the issue: October 1, 2002;
(iii)
nature and type: are with no guarantees or preferences, and are not convertible into shares of
the Company;
24
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
(iv)
nominal value: the debentures of the 1st series will have a nominal value per unit of R$10;
(v)
remuneration and renegotiation: debentures will be remunerated based on the average rate of
Interfinancial Deposits (DI) of one day, "over extra group", expressed in yearly percentage,
on a 252-day basis, calculated and disclosed by the Clearing House for the Custody and
Financial Settlement of Securities (CETIP), plus a spread of 1.45% per annum, on a 252day base, and this remuneration falls due on a six-monthly basis as from the date of issue.
The remuneration of the 1st series debentures will be renegotiated in the 24th month, as from
the issue date; and
(vi)
maturity: 1st series debentures will have a 60-month term, as from the issue date, falling due
on October 1, 2007.
(vii)
The expenses with placement of debentures, mainly represented by commission, were
recorded as Prepaid expenses and are appropriated in accordance with the maturity term of
the debentures.
12
Provision for Contingencies
Parent company
Social Contribution on Revenues
(COFINS) and Social Integration
Program (PIS) (i)
National Institute of Social
Security (ii)
Income tax (iii)
Contribution on Financial Activities
(CPMF) (iv)
Labor claims and other
Consolidated
2002
2001
2002
2001
469,969
239,407
533,850
255,294
234,381
91,286
190,186
89,048
235,677
92,519
190,864
89,048
90,672
21,062
56,180
12,418
100,869
26,076
60,651
15,302
907,370
587,239
988,991
611,159
25
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
The Company is a defendant, at various judicial levels, of tax and labor lawsuits. In the
cases in which its internal and external legal advisors consider the possibilities of success as
remote, the Company has recorded a provision for loss in amounts considered sufficient to
cover probable unfavorable outcomes.
(i)
The Company obtained a favorable decision in the lower courts not to apply Law 9718/98,
permitting that it determine the payment of COFINS under the terms of Complementary
Law 70/91 (2% of revenue) and of PIS under Law 9715/98 (0.65% of revenue) as from
February 1, 1999.
(ii)
The Company obtained a preliminary injunction to offset contributions paid in excess for
Labor Accident Insurance (SAT) and Education Allowance against payables of the same
nature to the INSS. The amounts not paid have been maintained in the provision for
contingencies - INSS, until a final ruling is obtained. Complying with a court order, the
Company has been acquiring public Debt Securities and placing them in judicial escrow in
order to have the right to offset the Education Allowance amounts, which it considered as
having been paid in excess.
(iii)
The provision for income tax contingencies includes disputed amounts, as well as the
recognition, based on a judicial ruling, of the effects of depreciation of fixed assets relating
to the inflation index differences arising from the Plano Verão (economic stabilization plan).
(iv)
The Company obtained a preliminary injunction suspending the requirement to withhold and
pay the Contribution on Financial Activities (CPMF) a tax on checking transactions
established by "Amendment 21/99". In addition, the Company obtained a legal authorization
for suspension of the application of the Central Bank Circular 3001/2000.
26
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
13
Income Tax
(a)
Income tax reconciliation
Parent company
Income before taxes
2002
2001
2002
2001
293,248
315,193
127,291
268,554
73,312
78,798
31,823
67,138
Income tax at the basic rate
Income tax incentives
Equity in the results and provision for unsecured
liabilities of subsidiary companies
Tax credit on tax losses of subsidiary
companies
Other permanent differences, net
(additions/deductions)
(b)
Consolidated
(108)
(85,788)
(1,719 )
4,193
(108)
1,592
(1,719)
(828)
(166,584)
(24,155)
60,710
(16,812 )
15,446
(22,615)
Effective income tax
48,126
64,460
(117,831)
17,821
Income tax for the year
Current
Deferred
34,459
13,667
35,829
28,631
34,855
(152,686)
35,829
(18,008)
48,126
64,460
(117,831)
17,821
Deferred income tax
In compliance with CVM Deliberations 273/98 and 371/02, deferred tax credits of
R$ 32,876 (2001 - R$ 39,702); consolidated - R$ 257,753 (2001 - R$ 105,067) arising from
tax losses and timing differences were recorded in long-term receivables at December 31,
2002, based on projections of future taxable income and with a realization period estimated
at up to five years.
27
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
Parent
company
2003
2004
2005
2006
14
Shareholders’ Equity
(a)
Capital and share rights
Consolidated
32,876
103,125
57,624
70,982
26,022
32,876
257,753
Authorized capital comprises 150,000,000,000 shares. Fully subscribed and paid-up capital
is represented by 113,186,139,433 (2001 -113,061,139,433) nominative shares with no
nominal value, of which 63,470,811,399 are common with voting rights and 49,715,328,034
(2001 - 49,590,328,034) are preferred.
Preferred shares have no voting rights but have the same rights and benefits as the common
shares, as well as priority assured in the by-laws in the event of a return of capital and
priority to receive a minimum annual dividend of R$ 0.15 (15 cents) per thousand shares on
a non-cumulative basis.
All shareholders are entitled to mandatory annual dividends and/or interest attributed to
capital of not less than 25% of adjusted net income calculated in conformity with Brazilian
corporate legislation.
28
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
(b)
Capital increases
(i)
Changes in the capital account and number of shares in 2002
Number of shares - thousand
At December 31, 2001
Capital
Preferred
Common
2,252,361
49,590,328
63,470,811
Capitalization of reserves
494,944
Subscription
Stock options (Note 14(e))
Series II
Series III
At December 31, 2002
2,396
73
120,900
4,100
2,469
125,000
2,749,774
49,715,328
63,470,811
(c)
Revenue reserves
(i)
Legal reserve: Amount appropriated to reserve equivalent to 5% of net income for the year
before any appropriations, and limited to 20% of capital.
(ii)
Expansion reserve: Amounts approved by the shareholders to maintain resources to finance
additional capital investments and working capital through the appropriation up to 90% of
the net income remaining after the legal appropriations.
(iii)
Unrealized earnings reserve: This reserve is being realized in proportion to the realization of
the permanent assets which generated the balance.
(iv)
Retention of earnings: The balance of this reserve at December 31, 2002 is to be determined
at the Shareholders' General Meeting.
29
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
(d)
Dividends proposed
On December 31, 2002, management proposed, for approval at the Annual General Meeting
(AGO), a dividend to be distributed and calculated as follows:
Net income for the year
Realization of unrealized earnings reserve
Legal reserve
245,122
4,898
(12,256)
Dividend calculation basis
237,764
Minimum mandatory dividend - 25%
(R$ 0.52516 per thousand shares)
59,441
Dividends to be distributed will be appropriated from net income for 2002.
(e)
Preferred stock option plan
At the Annual and Extraordinary General Meeting held on April 28, 1997, the preferred
stock option plan for directors and employees became effective and the first options were
granted relating to 1996.
The option price for each lot of shares is, at least, 60% of the weighted average of the
preferred shares traded in the week the option is granted. The percentage may vary for each
beneficiary or series.
The acquisition of the right to exercise the options is given in the following form and terms:
(i) 50% in the last month of the third year following the option date (1st tranche) and (ii)
50% in the last month of the fifth year following the option date (2nd tranche), with the
condition that a certain number of shares will be restricted as to sale until the date of
retirement of the beneficiary.
Shares from options exercised have the same rights as granted to the other shareholders.
Management of this plan was entrusted to a committee appointed by the Administrative
Council.
30
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
Information on the stock option plan is summarized as follows:
Preferred
shares
(in thousands)
Options granted
I Series - May 9, 1997
II Series - December 22, 1997
III Series - December 18, 1998
IV Series - March 31, 2000
V Series - April 2, 2001
VI Series - March 15, 2002
278,600
373,200
1,007,074
305,975
361,660
412,600
2,739,109
Options not granted
2,319,765
Total size of the option plan
5,058,874
Options exercised
I Series - December 15, 1999 (1st tranche)
II Series - December 13, 2000 (1st tranche)
I Series - December 7, 2001 (2nd tranche)
III Series - December 7, 2001 (1st tranche)
III Series - April 10, 2002 (1st tranche)
II Series - December 19, 2002 (2nd tranche)
III Series - December 19, 2002 (1st tranche - partial)
Current size of the option plan
(138,950)
(172,100)
(90,600)
(500,785)
(3,400)
(120,900)
(700)
4,031,439
31
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
15
Financial Instruments
(a)
General considerations
Derivative instruments and operations involving interest rates are used to protect the assets
and liabilities of the Company.
Transactions are carried out by the financial operations area in accordance with the strategy
previously approved by the Board of Directors.
Management considers that the risks are minimal, because they are not concentrated with
entities, and operations are limited to traditional, highly-rated banks and within approved
limits.
(b)
Market value of the financial instruments
The amounts of the financial instruments, assets and liabilities, at December 31, 2002 and
2001 recorded in asset and liability accounts are stated at their market values.
Financial investments are represented by short-term investments, stated at cost plus accrued
earnings, which approximate market value.
With the objective of exchanging the financial charges on loans in foreign currency, the
Company contracts swap transactions linked to the CDI interest rate, which reflect the
market value.
(c)
Concentration of credit risk
The Company’s financed sales are spread over a large number of customers. The Company
manages the credit risk through a strict program of qualification and granting of credit.
Doubtful receivables are adequately covered by a provision for loss on their realization.
32
Companhia Brasileira de Distribuição
Notes to the Financial Statements
at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
16
Insurance Coverage
Coverage at December 31, 2002 is considered sufficient by management to meet possible
losses and is summarized as follows:
Insured assets
Risks covered
Property, equipment and inventories
Cash
Fire and various risks
Theft
Amount
insured
4,152,356
33,599
The Company also holds a policy covering civil liability risks.
17
Subsequent Events
On January 17, 2003, the Company paid R$ 2,000 for Golden Auto Posto Ltda., whose main
asset is substantially represented by a gas station located in Osasco, São Paulo.
*
33
Companhia Brasileira de Distribuição
Supplemental Information to the
Financial Statements at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
The Company presents below, as supplemental information, the statements of cash flow
prepared in accordance with the Institute of Independent Auditors of Brazil (IBRACON)
Accounting Standards and Procedures (NPC-20) considering the main operations that
influenced the funds available and financial investments of the Company, and of the added
value prepared in accordance with the Securities Commission (CVM) Circular 01/00.
(a)
Statement of cash flow
Parent company
Consolidated
2002
2001
2002
2001
245,122
250,733
245,122
250,733
13,667
28,631
(152,686)
(18,008)
1,085
379,934
171,419
(361,061)
209,657
659,823
1,996
306,100
(9,385)
16,770
47,148
641,993
1,136
413,617
168,932
10,357
239,767
926,245
2,363
330,756
70,338
(2,995)
70,588
703,775
(17,646)
11,126
(231,508)
(186,475)
(82,519)
(193,121)
(24,707)
(724,850)
(23,241)
(5,307)
109,416
(37,244)
(47,299)
(3,276)
(8,461)
(15,412)
(57,201)
10,956
(294,691)
(270,462)
(157,081)
1,345
(32,516)
(799,650)
(21,452)
(5,256)
127,376
(43,738)
(52,702)
(20,654)
(9,370)
(25,796)
572,080
1,658
(530)
(16,029)
557,179
(227,408)
2,828
(20,210)
1,265
(243,525)
596,091
(3,237)
44,699
(10,321)
627,232
(223,933)
18,533
(48,005)
4,448
(248,957)
Net cash flow generated by operating activities
492,152
383,056
753,827
429,022
Cash flow from investing activities
Business combinations
Acquisition of property and equipment assets
Increase in deferred assets
(407,629)
(664,017)
(93,712)
(526,130)
(28,177)
(274,991)
(960,417)
(122,661)
(534,179)
(28,394)
(1,071,646)
(648,019)
(1,235,408)
(685,234)
Cash flow generated by operating activities
Net income for the year
Adjustment to reconcile net income
Deferred income tax
Residual value of property and equipment
disposals
Depreciation and amortization
Interest and monetary variations, net of payments
Equity in the results of investees
Provision for contingencies
(Increase) decrease in assets
Trade accounts receivable
Advances to suppliers and employees
Inventories
Taxes recoverable
Other assets
Related parties
Judicial deposits
Increase (decrease) in liabilities
Suppliers
Salaries and social security charges
Taxes and social contributions payable
Other accounts payable
Net cash flow used in investing activities
34
Companhia Brasileira de Distribuição
Supplemental Information to the
Financial Statements at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
Parent company
Consolidated
2002
2001
2002
2001
2,469
9,905
2,469
9,905
2,331,923
(1,612,909)
(60,774)
1,718,658
(1,205,995)
(80,135)
(24,880)
2,297,616
(1,670,661)
(60,774)
1,786,982
(1,279,608)
(80,135)
(24,880)
660,709
417,553
568,650
412,264
81,215
152,590
87,069
156,052
1,110,894
1,029,679
1,029,679
877,089
1,135,158
1,048,089
1,048,089
892,037
Changes in cash and cash equivalents
81,215
152,590
87,069
156,052
Cash flow supplemental information
Loans and financings interest paid
356,458
229,437
366,172
236,309
Cash flow generated by financing activities
Capital increase
Financings
Fundings and refinancings
Payments
Payment of dividends
Interest on capital paid
Net cash flow generated by financing
activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the end of the year
Cash and cash equivalent at the beginning of the year
35
Companhia Brasileira de Distribuição
Supplemental Information to the
Financial Statements at December 31, 2002 and 2001
All amounts in thousands of reais unless otherwise indicated
(b)
Statement of added value
Parent company
2002
Income
Sale of goods
Write-off of credits
Non-operating
%
2001
%
Consolidated
2002
%
2001
9,439,263
(44,299)
4,652
9,399,616
8,543,616
(48,561)
4,485
8,499,540
11,154,079
(45,400)
4,480
11,113,159
9,532,606
(49,318)
1,851
9,485,139
(6,668,739)
(5,930,684)
(7,818,951)
(6,654,552)
(585,881)
(648,621)
(773,995)
(742,373)
Gross added value
2,144,996
1,920,235
2,520,213
2,088,214
Retentions
Depreciation and
amortization
(379,934)
(306,100)
(413,617)
(330,756)
1,765,062
1,614,135
2,106,596
1,757,458
351,788
328,377
(16,770)
485,205
(10,357)
438,788
2,995
422,453
Consumable materials
acquired from third parties
Cost of sales
Materials, energy, thirdparty services and others
Net added value
produced by the Company
Received from transfers
Equity in the results
Financial income
Total undistributed added
value
Distribution of added value
Personnel and charges
Taxes, rates and
contributions
Interest and rents
Interest on capital and
dividends
Retention of profits
%
2,445,227 100.0
2,082,570 100.0
2,535,027 100.0
2,182,906 100.0
(672,437)
27.5
(579,927) 27.8
(794,992)
31.1
(635,933)
29.1
(765,356)
(762,312)
31.3
31.2
(697,283) 33.5
(554,627) 26.6
(701,914)
(792,999)
27.5
31.8
(706,373)
(589,867)
32.3
27.0
(59,441)
2.4
(60,774)
2.9
(59,441)
2.3
(60,774)
2.8
185,681
7.6
189,959
9.2
185,681
7.3
189,959
8.8
*
*
36
*
37