Quaterly Information 3Q21

TELEFÔNICA BRASIL S.A.

QUARTERLY INFORMATION

SEPTEMBER 30, 2021

(A free translation of the original in Portuguese)

Report on review of quarterly information

To the Board of Directors and Shareholders

Telefônica Brasil S.A.

Introduction

We have reviewed the accompanying parent company and consolidated interim accounting information of Telefônica Brasil S.A. ("Parent company" or "Company"), included in the Quarterly Information Form (ITR) for the quarter ended September 30, 2021, comprising the balance sheet at that date and the statements of income and other comprehensive income for the quarter and nine-month period then ended, and the statements of changes in equity and cash flows for the nine-month period then ended, as well as a summary of significant accounting policies and other explanatory information.

Management is responsible for the preparation of the parent company and consolidated interim accounting information in accordance with the accounting standard CPC 21, Interim Financial Reporting, of the Brazilian Accounting Pronouncements Committee (CPC), and International Accounting Standard (IAS) 34 - Interim Financial Reporting issued by the International Accounting Standards Board (IASB), as well as the presentation of this information in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim accounting information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the interim information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying parent company and consolidated interim accounting information included in the quarterly information referred to above has not been prepared, in all material respects, in accordance with CPC 21 and IAS 34 applicable to the preparation of the Quarterly Information, and presented in accordance with the standards issued by the CVM.

Other matters

Statements of value added

The Quarterly Information referred to above includes the parent company and consolidated statements of value added for the nine-month period ended September 30, 2021. These statements are the responsibility of the Company's management, and are presented as supplementary information for IAS 34 purposes. These statements have been subjected to review procedures performed together with the review of the quarterly information for the purpose of concluding whether they are reconciled with the interim accounting information and accounting records, as applicable, and if their form and content are in accordance with the criteria defined

(A free translation of the original in Portuguese)

in the accounting standard CPC 09 - "Statement of Value Added". Based on our review, nothing has come to our attention that causes us to believe that these statements of value added have not been properly prepared, in all material respects, in accordance with the criteria defined in this accounting standard, and in a consistent manner in relation to the parent company and consolidated interim accounting information taken as a whole.

São Paulo, October 22, 2021

PricewaterhouseCoopers

Auditores Independentes

CRC 2SP000160/O-5

Sérgio Eduardo Zamora

Contador CRC 1SP168728/O-4

TELEFÔNICA BRASIL S.A.
Balance Sheets
On September 30, 2021 and December 31, 2020
(In thousands of reais)									(A free translation of the original in Portuguese)
		Company		Consolidated			Company		Consolidated
ASSETS	Note	09.30.21	12.31.20	09.30.21	12.31.20	LIABILITIES AND EQUITY	Note	09.30.21	12.31.20	09.30.21	12.31.20
Current assets		23.386.758	18.827.625	23.710.223	19.060.868	Current liabilities		22.137.028	17.828.902	22.250.485	17.875.084
Cash and cash equivalents	3	8.285.860	5.517.354	8.687.948	5.762.081	Personnel, social charges and benefits	15	1.020.476	737.354	1.062.693	764.329
Financial investments	4	39.864	-	39.864	-	Trade accounts payable	16	7.420.589	6.636.448	7.445.748	6.613.004
Trade accounts receivable	5	7.946.537	8.174.784	7.971.922	8.182.667	Income and social contribution taxes payable	8	-	-	1.856	1.693
Inventories	6	588.117	626.836	595.301	633.100	Taxes, charges and contributions payable	17	2.666.041	1.590.784	2.689.906	1.607.434
Prepaid expenses	7	1.236.919	858.257	1.239.592	859.766	Dividends and interest on equity	18	4.858.495	3.865.998	4.858.495	3.865.998
Income and social contribution taxes recoverable	8	453.784	514.582	464.411	519.277	Provisions and contingencies	19	660.393	412.745	663.198	417.653
Taxes, charges and contributions recoverable	9	3.937.684	2.505.056	3.945.309	2.512.293	Loans, financing, debentures and leases	20	4.408.934	3.680.828	4.410.319	3.682.472
Judicial deposits and garnishments	10	130.331	176.242	131.372	177.433	Deferred revenue	21	610.132	506.778	610.856	506.806
Dividends and interest on equity	18	178.199	44.369	-	-	Derivative financial instruments	31	1.321	8.864	1.321	8.864
Derivative financial instruments	31	9.294	5.902	9.294	5.902	Other liabilities	22	490.647	389.103	506.093	406.831
Other assets	11	580.169	404.243	625.210	408.349
Non-current assets		89.529.558	89.690.754	89.542.329	89.677.510	Non-current liabilities		21.428.809	21.132.713	21.606.705	21.306.530
Long-term assets		4.999.662	4.300.633	5.294.079	4.598.367	Personnel, social charges and benefits	15	14.392	3.675	14.397	3.679
Financial investments	4	40.147	46.051	40.341	46.280	Income and social contribution taxes payable	8	97.093	96.252	97.093	96.252
Trade accounts receivable	5	444.663	379.898	444.663	379.898	Taxes, charges and contributions payable	17	290.098	270.692	340.990	319.358
Prepaid expenses	7	356.186	194.468	356.190	194.511	Deferred taxes	8	5.302.569	4.414.540	5.302.569	4.414.540
Deferred taxes	8	-	-	127.695	138.641	Provisions and contingencies	19	5.643.931	5.074.544	5.762.868	5.192.478
Taxes, charges and contributions recoverable	9	1.061.782	824.322	1.061.785	824.324	Loans, financing, debentures and leases	20	8.296.073	9.555.003	8.297.244	9.556.694
Judicial deposits and garnishments	10	2.575.246	2.608.380	2.736.150	2.766.945	Deferred revenue	21	210.107	239.287	210.139	239.438
Derivative financial instruments	31	47.169	63.514	47.169	63.514	Derivative financial instruments	31	67.773	66.116	67.773	66.116
Other assets	11	474.469	184.000	480.086	184.254	Other liabilities	22	1.506.773	1.412.604	1.513.632	1.417.975
Investments	12	659.327	478.552	360.419	144.433
Property, plant and equipment	13	44.061.273	44.335.795	44.072.565	44.352.593	TOTAL LIABILITIES		43.565.837	38.961.615	43.857.190	39.181.614
Intangible assets	14	39.809.296	40.575.774	39.815.266	40.582.117
						Equity	23	69.350.479	69.556.764	69.350.479	69.556.764
						Capital		63.571.416	63.571.416	63.571.416	63.571.416
						Capital reserves		832.082	1.182.263	832.082	1.182.263
						Revenue reserves		3.187.982	3.149.679	3.187.982	3.149.679
						Other comprehensive income acumulated		67.809	65.888	67.809	65.888
						Retained earnings		1.691.190	-	1.691.190	-
						Additional proposed dividends		-	1.587.518	-	1.587.518
						Non-controlling shareholders		-	-	44.883	-
						TOTAL EQUITY		69.350.479	69.556.764	69.395.362	69.556.764
TOTAL ASSETS		112.916.316	108.518.379	113.252.552	108.738.378	TOTAL LIABILITIES AND EQUITY		112.916.316	108.518.379	113.252.552	108.738.378

TELEFÔNICA BRASIL S.A.

Statements of Income

Three and nine-month periods ended September 30, 2021 and 2020

(In thousands of reais, except earnings per share)														(A free translation of the original in Portuguese)
					Company							Consolidated
			Three-month periods ended	Nine-month periods ended		Three-month periods ended		Nine-month periods ended
	Note		09.30.21		09.30.20			09.30.21		09.30.20		09.30.21		09.30.20		09.30.21		09.30.20
Net operating revenue	24		10.943.415	10.649.812			32.296.982	31.506.160	11.033.251	10.791.538	32.531.671	31.933.652
Cost of sales and services	25		(6.148.856)	(5.826.682)			(17.980.615)	(16.643.196)	(6.189.521)	(5.858.242)	(18.094.587)	(16.751.721)
Gross profit			4.794.559	4.823.130			14.316.367	14.862.964	4.843.730	4.933.296	14.437.084	15.181.931
Operating income (expenses)			(3.044.945)		(3.370.985)			(9.275.816)		(10.460.088)		(3.066.881)		(3.394.461)		(9.334.653)		(10.555.235)
Selling expenses	25		(2.894.536)	(2.924.938)			(8.794.381)	(8.973.376)	(2.895.940)	(2.931.882)	(8.808.306)	(8.996.320)
General and administrative expenses	25		(633.066)	(588.499)			(1.870.879)	(1.826.209)	(648.466)	(597.666)	(1.906.923)	(1.859.436)
Other operating income	26		776.340	368.412			2.849.041	999.588	778.759	369.144	2.851.077	1.001.912
Other operating expenses	26		(293.683)	(225.960)			(1.459.597)	(660.091)	(301.234)	(234.057)	(1.470.501)	(701.391)
Operating income			1.749.614	1.452.145			5.040.551	4.402.876	1.776.849	1.538.835	5.102.431	4.626.696
Financial income	27		232.450	432.955			1.046.347	1.136.142	239.684	437.342	1.059.258	1.153.862
Financial expenses	27		(490.098)	(451.491)			(1.775.921)	(1.425.955)	(494.075)	(453.852)	(1.785.575)	(1.439.731)
Equity pickup	12		140.298	59.416			157.257	142.417	120.995	(277)	123.926	1.053
Income before taxes			1.632.264	1.493.025			4.468.234	4.255.480	1.643.453	1.522.048	4.500.040	4.341.880
Income and social contribution taxes	8		(314.495)	(281.538)			(863.385)	(777.743)	(328.754)	(310.561)	(898.261)	(864.143)
Net income for the period			1.317.769	1.211.487			3.604.849	3.477.737	1.314.699	1.211.487	3.601.779	3.477.737
Attributable to:
Non-controlling shareholders			-	-			-	-	(3.070)	-	(3.070)	-
Controlling shareholders			1.317.769	1.211.487			3.604.849	3.477.737	1.317.769	1.211.487	3.604.849	3.477.737
Basic and diluted earnings per common share (in R$)	23		0,78	0,67			2,14	1,93
Basic and diluted earnings per preferred share (in R$)	23		N/A	0,74			N/A	2,12