UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of July, 2023

Commission File Number: 001-09531

Telefónica, S.A.
(Translation of registrant's name into English)

Distrito Telefónica, Ronda de la Comunicación s/n,
28050 Madrid, Spain
3491-482 87 00
(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
NoX

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
NoX






Telefónica, S.A.


TABLE OF CONTENTS


ItemSequential Page Number
1.Telefónica - Half yearly financial Report January June 20232




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Condensed Consolidated Interim Financial Statements 2023
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Index


Condensed Consolidated Interim Financial Statements 2023
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Telefónica Group
Consolidated statements of financial position
Millions of eurosNotes
06/30/2023
12/31/2022
ASSETS
A) NON-CURRENT ASSETS87,644 87,053 
Intangible assets
(Note 6)
11,802 12,017 
Goodwill19,033 18,471 
Property, plant and equipment23,829 23,714 
Rights of use8,315 8,279 
Investments accounted for by the equity method11,561 11,587 
Financial assets and other non-current assets8,154 8,101 
Deferred tax assets4,950 4,884 
B) CURRENT ASSETS21,326 22,589 
Inventories1,510 1,546 
Receivables and other current assets9,678 9,134 
Tax receivables1,364 2,213 
Other current financial assets1,254 2,444 
Cash and cash equivalents7,290 7,245 
Non-current assets and disposal groups held for sale
(Note 27)
230 7 
TOTAL ASSETS (A+B)108,970 109,642 
Notes06/30/202312/31/2022
EQUITY AND LIABILITIES
A) EQUITY31,188 31,708 
Equity attributable to equity holders of the parent and other holders of equity instruments25,055 25,088 
Equity attributable to non-controlling interests6,133 6,620 
B) NON-CURRENT LIABILITIES53,821 54,834 
Non-current financial liabilities34,019 35,059 
Non-current lease liabilities6,530 6,657 
Payables and other non-current liabilities3,782 3,546 
Deferred tax liabilities3,083 3,067 
Non-current provisions6,407 6,505 
C) CURRENT LIABILITIES23,961 23,100 
Current financial liabilities4,231 4,020 
Current lease liabilities2,157 2,020 
Payables and other current liabilities14,393 13,509 
Current tax payables1,760 1,920 
Current provisions1,408 1,631 
Liabilities associated with non-current assets and disposal groups held for sale
(Note 27)
12 — 
TOTAL EQUITY AND LIABILITIES (A+B+C)108,970 109,642 
Unaudited data at June 30, 2023. The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.
Telefónica, S.A. 3
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Telefónica Group
Consolidated income statements
Millions of eurosNotes
January- June 2023
January- June 2022
Revenues20,178 19,450 
Other income664 1,069 
Supplies(6,550)(6,200)
Personnel expenses(2,936)(2,673)
Other expenses(5,090)(5,301)
OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION (OIBDA)6,266 6,345 
Depreciation and amortization(Notes 4, 6, 8 and 21)(4,348)(4,336)
OPERATING INCOME1,918 2,009 
Share of income (loss) of investments accounted for by the equity method(14)105 
Finance income606 680 
Exchange gains1,011 2,964 
Finance costs(1,430)(1,266)
Exchange losses(977)(3,038)
Net financial expense(790)(660)
PROFIT BEFORE TAX1,114 1,454 
Corporate income tax(230)(312)
PROFIT FOR THE PERIOD884 1,142 
Attributable to equity holders of the Parent760 1,026 
Attributable to non-controlling interests124 116 
Basic and diluted earnings per share attributable to equity holders of the parent (euros)0.11 0.16 
Unaudited data. The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.
Telefónica, S.A. 4
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Telefónica Group
Consolidated statements of comprehensive income
Millions of eurosJanuary - June
2023		January - June
2022
Profit for the period884 1,142 
Other comprehensive (loss) income1,423 2,761 
Gains (losses) from financial assets measured at Fair value through comprehensive income
13 (3)
Income tax impact(5)1 
8 (2)
 (Losses) gains on hedges(380)1,110 
Income tax impact80 (286)
Reclassification of losses (gains) included in the income statement 22 (900)
Income tax impact(4)224 
(282)148 
Gains (losses) on hedges costs21 (46)
Income tax impact(5)11 
Reclassification of (gains) losses included in the income statement (5)(5)
Income tax impact1 1 
12 (39)
Share of (losses) gains recognized directly in equity of associates and others(10)51 
Income tax impact— — 
(10)51 
Translation differences 1,595 2,422 
Total other comprehensive income (loss) recognized in the period (Items that may be reclassified subsequently to profit or loss)1,323 2,580 
Actuarial gains (losses) and impact of limit on assets for defined benefit pension plans9 220 
Income tax impact(4)(70)
5 150 
Gains (losses) from financial assets measured at Fair value through comprehensive income71 (30)
Income tax impact— — 
Reclassification to reserve of gains (losses) from financial assets measured at Fair value through comprehensive income24 71 
95 41 
Share of (losses) gains recognized directly in equity of associates— (10)
— (10)
Total other comprehensive income (loss) recognized in the period (Items that will not be reclassified subsequently to profit or loss)100 181 
Total comprehensive income (loss) recognized in the period2,307 3,903 
Attributable to: 
Equity holders of the parent and other holders of equity instruments1,918 3,217 
Non-controlling interests389 686 
2,307 3,903 
Unaudited data. The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.
Telefónica, S.A. 5
Condensed Consolidated Interim Financial Statements 2023
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Telefónica Group
Consolidated statements of changes in equity
Attributable to equity holders of the parent and other holders of equity instrumentsNon-controlling interests Total equity
Millions of eurosShare capitalShare premiumTreasury SharesOther equity instrumentsLegal reserveRetained earningsFair value financial assetsHedgesEquity of associates and othersTranslation differencesTotal
Financial position at December 31, 2022
5,775 3,824 (341)7,550 1,059 27,698 (449)725 (30)(20,723)25,088 6,620 31,708 
Profit for the year— — — — — 760 — — — — 760 124 884 
Other comprehensive income (loss) for the year— — — — — 4 103 (276)2 1,325 1,158 265 1,423 
Total comprehensive income (loss) for the year— — — — — 764 103 (276)2 1,325 1,918 389 2,307 
Dividends and distribution of profit (Note 11)— — — — — (1,701)— — — — (1,701)(229)(1,930)
Capital reduction(25)(73)98 — — — — — — — — — — 
Net movement in treasury shares— — (73)— — (26)— — — — (99)— (99)
Acquisitions and disposals of non-controlling interests and business combinations (Note 2)— — — — — (57)— — — — (57)(647)(704)
Undated deeply subordinated securities (Note 11)— — — — — (140)— — — — (140)— (140)
Other movements— — — — — 46 — — — — 46 — 46 
Financial position at June 30, 2023
5,750 3,751 (316)7,550 1,059 26,584 (346)449 (28)(19,398)25,055 6,133 31,188 
Unaudited data.
The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.
Telefónica, S.A. 6
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Telefónica Group
Consolidated statements of changes in equity
Attributable to equity holders of the parent and other holders of equity instrumentsNon-controlling interests Total equity
Millions of eurosShare capitalShare premiumTreasury SharesOther equity instrumentsLegal reserveRetained earningsAvailable-for-sale investmentsHedgesEquity of associates and othersTranslation differencesTotal
Financial position at December 31, 2021
5,779 4,233 (547)7,550 1,038 26,091 (547)438 64 (21,892)22,207 6,477 28,684 
Profit for the year— — — — — 1,026 — — — — 1,026 116 1,142 
Other comprehensive income (loss) for the year— — — — — 104 39 161 3 1,884 2,191 570 2,761 
Total comprehensive income (loss) for the year— — — — — 1,130 39 161 3 1,884 3,217 686 3,903 
Dividends and distribution of profit (Note 11) (1)
135 — — — 21 (1,232)— — — — (1,076)(309)(1,385)
Capital reduction(139)(409)548 — — — — — — — — — — 
Net movement in treasury shares — — (108)— — (12)— — — — (120)— (120)
Acquisitions and disposals of non-controlling interests and business combinations (Note 2)— — — — — (64)— — — — (64)(78)(142)
Undated deeply subordinated securities — — — — — (132)— — — — (132)— (132)
Other movements— — — — — 14 — — — — 14 — 14 
Financial position at June 30, 2022
5,775 3,824 (107)7,550 1,059 25,795 (508)599 67 (20,008)24,046 6,776 30,822 
Unaudited data.
The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.
(1) The amount in "Dividends and distribution of profit" was modified, including the second tranche of the dividend approved by the 2022 General Shareholders' Meeting, which was paid in December 2022 (see Note 11).
Telefónica, S.A. 7
Condensed Consolidated Interim Financial Statements 2023
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Telefónica Group
Consolidated statements of cash flows
Millions of eurosNotesJanuary - June
2023		January - June
2022
Cash received from operations(Note 25)23,790 23,208 
Cash paid from operations(Note 25)(17,723)(17,463)
Net payments of interest and other financial expenses net of dividends received(Note 25)(512)(738)
Taxes (paid)/proceeds(Note 25)(266)(268)
Net cash flow provided by operating activities(Note 25)5,289 4,739 
(Payments on investments)/proceeds from the sale in property, plant and equipment and intangible assets, net(Note 25)(3,042)(2,632)
Proceeds on disposals of companies, net of cash and cash equivalents disposed(Note 25)969 135 
Payments on investments in companies, net of cash and cash equivalents acquired(Note 25)(56)(1,511)
Proceeds on financial investments not included under cash equivalents(Note 25)897 1,513 
Payments on financial investments not included under cash equivalents(Note 25)(504)(771)
Proceeds/(payments) for temporary financial investments577 1,638 
Government grants received8 — 
Net cash flow used in investing activities(Note 25)(1,151)(1,628)
Dividends paid(Note 25)(1,141)(388)
Proceeds from share capital increase with minority interest(Note 25)113 — 
(Payments)/proceeds of treasury shares and other operations with shareholders and with minority interests(Note 25)(800)(226)
Operations with other equity holders(Note 25)(195)(175)
Proceeds on issuance of debentures and bonds, and other debts(Note 25)— 1,100 
Proceeds on loans, borrowings and promissory notes(Note 25)962 300 
Repayments of debentures and bonds, and other debts(Note 25)(1,352)(1,993)
Repayments of loans, borrowings and promissory notes(Note 25)(525)(2,656)
Lease principal payments (Note 21)(Note 21)(1,076)(1,011)
Financed operating payments and investments in property, plant and equipment and intangible assets payments (Note 16)(Note 16)(84)(490)
Net cash used in financing activities(Note 25)(4,098)(5,539)
Effect of changes in exchange rates15 235 
Cash reclassified to assets held for sale(Note 27)(10)— 
Effect of changes in consolidation methods and others— (2)
Net increase (decrease) in cash and cash equivalents during the period45 (2,195)
CASH AND CASH EQUIVALENTS AT JANUARY 1(Note 15)7,245 8,580 
CASH AND CASH EQUIVALENTS AT JUNE 30(Note 15)7,290 6,385 
RECONCILIATION OF CASH AND CASH EQUIVALENTS WITH THE STATEMENT OF FINANCIAL POSITION
BALANCE AT JANUARY 1(Note 15)7,245 8,580 
Cash on hand and at banks6,653 7,353 
Other cash equivalents592 1,227 
BALANCE AT JUNE 30(Note 15)7,290 6,385 
Cash on hand and at banks6,118 5,559 
Other cash equivalents1,172 826 
Unaudited data.
The accompanying notes and appendices are an integral part of these condensed consolidated interim financial statements.


Telefónica, S.A. 8
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Telefónica, S.A. and subsidiaries composing the Telefónica Group
Notes to the condensed consolidated interim financial statements for the six-months ended June 30, 2023


Telefónica, S.A. 9
Condensed Consolidated Interim Financial Statements 2023
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Note 1. Background and general information
Telefónica, S.A. and its subsidiaries and investees (hereinafter “Telefónica”, “the Company”, the “Telefónica Group” or "the Group”) make up an integrated and diversified telecommunications group operating mainly in Europe and Latin America. The Group’s activity is centered around services of wireline and wireless telephony, broadband, internet, data traffic, Pay TV and other digital services.
The parent company of the Group is Telefónica, S.A., a public limited company incorporated on April 19, 1924 for an indefinite period. Its registered office is at calle Gran Vía 28, Madrid (Spain).
As a multinational telecommunications company which operates in regulated markets, the Group is subject to different laws and regulations in each of the jurisdictions in which it operates, pursuant to which permits, concessions or licenses must be obtained in certain circumstances to provide the various services.
In addition, certain wireline and wireless telephony services are provided under regulated rate and price systems.


Telefónica, S.A. 10
Condensed Consolidated Interim Financial Statements 2023
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Note 2. Basis of presentation of the consolidated financial statements
The condensed consolidated interim financial statements for the six-month period ended June 30, 2023 (hereinafter, the “interim financial statements”) have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting and Article 12 of Royal Decree 1362/2007, of October 19. Therefore, they do not contain all the information and disclosures required in complete annual consolidated financial statements and, for adequate interpretation, should be read in conjunction with the consolidated financial statements (Consolidated annual accounts) for the year ended December 31, 2022.
The accompanying interim financial statements were approved by the Company’s Board of Directors at its meeting of July 26, 2023.
The figures in these interim financial statements are expressed in millions of euros, unless otherwise indicated, and may therefore be rounded.
Comparison of information
Comparisons in the accompanying interim financial statements refer to the six-month periods ended June 30, 2023 and 2022, except in the consolidated statement of financial position, which compares information at June 30, 2023 and at December 31, 2022.
The main changes in the consolidation scope are described in Appendix I.
With respect to seasonality, the historical performance of consolidated results does not indicate that the operations of the Group, taken as a whole, are subject to significant variations between the first and second halves of the year.
Exchange rates evolution
Variation of average exchange rate versus euro
First half (2023 vs 2022)
First half (2022 vs 2021)
Brazilian real0.7 %17.4 %
Pound sterling(3.9 %)3.1 %
New peruvian sol1.5 %8.9 %
Chilean peso3.6 %(3.8 %)
Colombian peso(13.6 %)2.2 %
Mexican peso12.8 %9.8 %
Variation of closing exchange rate versus euro
06/30/23 vs 12/31/2206/30/22 vs 12/31/21
Brazilian real6.5 %16.1 %
Pound sterling3.4 %(2.1 %)
New peruvian sol3.4 %13.6 %
Chilean peso5.0 %(1.2 %)
Colombian peso13.2 %4.5 %
Mexican peso11.7 %10.8 %
In the first half of 2023, there was a positive impact on Equity attributable to equity holders of the Parent Company for translation differences amounting to 1,325 million euros (see Note 11), mainly due to the appreciation of the Brazilian real.
Acquisition of mobile assets of Oi Group
On April 20, 2022, the closing of the transaction related to the Purchase Agreement for Acquisition of Unidade Produtiva Isolada (UPI) Mobile Assets of Oi Group took place, and Telefónica Brasil acquired, on such date, all the shares of the company Garliava RJ Infraestrutura e Redes de Telecomunicações S.A. (Garliava), to which the mobile assets of Oi Group assigned to Telefónica Brazil had been contributed, under the segregation plan stated in the Oi Agreement.
Telefónica Brasil thus acquired its share of mobile assets of the Oi Group for an amount, still subject to adjustments, of 5,373 million Brazilian reais (approximately 1,063 million euros at the exchange rate


Telefónica, S.A. 11
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at such date), A payment of 4,885 million Brazilian reais (approximately 972 million euros) was made at closing of the transaction. The remaining amount, equivalent to 10% of the payment made on that date, is withheld subject to certain price adjustments derived from potential indemnification obligations contained in the Oi Agreement. The total consideration also includes 110 million Brazilian reais subject to the fulfilment of certain targets, and other costs amounting to 8 million Brazilian reais. Thus, the total consideration transferred amounted to 5,492 million Brazilian reais (1,093 million euros at the date of the closing of the transaction).
Alternative measures not defined in IFRS
The Management of the Group uses a series of measures in its decision-making, in addition to those expressly defined in the IFRS, because they provide additional information useful to assess the Group’s performance, solvency and liquidity. These measures should not be viewed in isolation or as a substitute for the measures presented according to the IFRS.
Operating income before depreciation and amortization (OIBDA)
Operating income before depreciation and amortization (OIBDA) is calculated by excluding solely depreciation and amortization from operating income. OIBDA is used to track the performance of the business and to establish operating and strategic targets of the
Telefónica Group companies. OIBDA is a commonly reported measure and is widely used among analysts, investors and other interested parties in the telecommunications industry, although not a measure explicitly defined in IFRS, and therefore, may not be comparable to similar indicators used by other companies. OIBDA should not be considered as a substitute for operating income.
Furthermore, the Group management uses the measure OIBDA margin, which is the result of dividing the OIBDA by the Revenues.
The following table presents the reconciliation of OIBDA to operating income for the Telefónica Group for the six-months periods ended June 30, 2023 and 2022:
Millions of euros
January - June 2023
January - June 2022
Operating Income Before Depreciation and Amortization (OIBDA)6,266 6,345 
Depreciation and amortization(4,348)(4,336)
Operating income1,918 2,009 
The following table presents the reconciliation of OIBDA to operating income for each business segment for the six-months periods ended June 30, 2023 and 2022:
January - June 2023
Millions of eurosTelefónica SpainTelefónica GermanyTelefónica BrazilTelefónica HispamOther companiesElimina-tionsTotal Group
Operating Income Before Depreciation and Amortization (OIBDA)2,223 1,275 1,905 798 97 (32)6,266 
Depreciation and amortization(1,083)(1,153)(1,195)(821)(115)19 (4,348)
Operating income1,140 122 710 (23)(18)(13)1,918 
January - June 2022
Millions of eurosTelefónica SpainTelefónica GermanyTelefónica BrazilTelefónica HispamOther companiesElimina-tionsTotal Group
Operating Income Before Depreciation and Amortization (OIBDA)2,254 1,247 1,714 1,094 78 (42)6,345 
Depreciation and amortization(1,075)(1,131)(1,133)(922)(94)19 (4,336)
Operating income1,179 116 581 172 (16)(23)2,009 



Telefónica, S.A. 12
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OIBDA-CapEx and OIBDA-CapEx excluding spectrum acquisitions
OIBDA-CapEx is defined as operating income before depreciation and amortization, reduced by accrued capital expenditures (CapEx) excluding spectrum acquisitions is defined as operating income before depreciation and amortization, reduced by accrued capital expenditures excluding those related to spectrum acquisitions.
We believe that it is important to consider capital expenditures, and capital expenditures excluding spectrum acquisitions, together with OIBDA in order to have a more complete measure of the performance of our telecommunications businesses. We use these measures internally to track the performance of our business, to establish operating and strategic targets of the businesses of the Group and in our internal budgeting process.
Neither OIBDA-CapEx nor OIBDA-CapEx excluding spectrum acquisitions are measures expressly defined in IFRS, and therefore they may not be comparable to similar indicators used by other companies. In addition, neither OIBDA-CapEx nor OIBDA-CapEx excluding spectrum acquisitions should be considered substitutes for operating income, the most comparable financial measure calculated in accordance with IFRS, or any measure of liquidity calculated in accordance with IFRS.
Furthermore, the Group management uses the measures OIBDA-CapEx margin and OIBDA-CapEx excluding spectrum acquisitions margin, which is the result of dividing these measures by the revenues.
In the table below we provide a reconciliation of our OIBDA-CapEx and OIBDA-CapEx excluding spectrum acquisitions to operating income for the periods indicated:
Millions of euros
January - June 2023
January - June 2022
Operating income1,918 2,009 
Depreciation and amortization(4,348)(4,336)
OIBDA6,266 6,345 
Capital expenditures in intangibles assets (Note 6)(612)(716)
Capital expenditures in property, plant and equipment (Note 8)(1,792)(1,766)
CapEx(2,404)(2,482)
OIBDA-CapEx3,862 3,863 
Spectrum acquisitions (Note 6)12 132 
OIBDA-CapEx excluding spectrum acquisitions3,874 3,995
Debt indicators
As calculated by us, net financial debt includes:
(A) adding the following liabilities:
i. current and non-current financial liabilities in our consolidated statement of financial position (which includes the negative mark-to-market value of derivatives),
ii. other liabilities included in "Payables and other non-current liabilities" and "Payables and other current liabilities" (mainly corresponding to payables for deferred payment of radio spectrum that have an explicit financial component and supplier financing for customer financing of terminal sales), and
iii. financial liabilities included in "Liabilities associated with non-current assets held for sale".
(B) subtracting the following amounts from the resulting amount of the preceding step:
i. cash and cash equivalents,
ii. other current financial assets (which include short-term derivatives),
iii. cash and other financial assets included in "Non-current assets and disposal groups classified as held for sale",
iv. the positive mark-to-market value of derivatives with a maturity beyond one year,
v. other interest-bearing assets (included in "Financial assets and other non-current assets", "Receivables and other current assets" and "Tax receivables" in our consolidated statement of financial position). "Financial assets and other non-current assets" includes derivatives, installments for the long-term sales of terminals to customers and other long-term financial assets, and "Receivables and other current assets" includes the customer financing of terminal sales classified as short-term.
vi. mark-to-market adjustment by cash flow hedging activities related to debt.
vii. fair value of derivatives adjustment used for the economic hedging of gross commitments related to employee benefits.
The indicator net financial debt plus leases is calculated by adding lease liabilities calculated under IFRS 16 (including those corresponding to companies held for sale) to net financial debt and deducting assets from subleases.
We calculate net financial debt plus commitments by adding gross commitments related to employee benefits and the fair value of the derivatives used for


Telefónica, S.A. 13
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the economic hedging of such commitments to net financial debt, and deducting the value of long-term assets associated with those commitments related to employee benefits and the tax benefits arising from the future payments of those commitments related to employee benefits. Gross commitments related to employee benefits are current and non-current provisions recorded for certain employee benefits such as termination plans, post-employment defined benefit plans and other benefits.
We believe that net financial debt, net financial debt plus leases, net financial debt plus commitments and net financial debt plus leases plus commitments are meaningful for investors and analysts because they
provide an analysis of our solvency using the same measures used by our management. We use them to calculate internally certain solvency and leverage ratios. Nevertheless, none of them as calculated by us should be considered as a substitute for gross financial debt as presented in the consolidated statement of financial position.
The following table presents a reconciliation of net financial debt, net financial debt plus leases, net financial debt plus commitments and net financial debt plus leases plus commitments as of June 30, 2023 and December 31, 2022 to the Telefónica Group’s gross financial debt as indicated in the consolidated statement of financial position:
Millions of euros
06/30/2023
12/31/2022
Non-current financial liabilities34,019 35,059 
Current financial liabilities4,231 4,020 
Gross financial debt (Note 16)
38,250 39,079 
Cash and cash equivalents(7,290)(7,245)
Other assets included in "Other current financial assets"(1,243)(2,431)
Cash and other financial assets included in "Non-current assets and disposal groups classified as held for sale"(10)— 
Positive mark-to-market value of long-term derivative instruments (notes 12 and 17)(2,507)(2,668)
Other liabilities included in "Payables and other non-current liabilities"1,681 1,431 
Other liabilities included in "Payables and other current liabilities"453 402 
Other assets included in "Financial assets and other non-current assets"(1,850)(1,892)
Other assets included in "Receivables and other current assets"(637)(646)
Other current assets included in "Tax receivables"(9)(123)
Financial liabilities included in "Liabilities associated with non-current assets held for sale"— — 
Mark-to-market adjustment by cash flow hedging activities related to debt957 1,102 
Fair value of derivatives adjustment used for the economic hedging of gross commitments related to employee benefits(316)(322)
Net financial debt27,479 26,687 
Lease liabilities8,658 8,645 
Net financial debt plus leases36,137 35,332 
Gross commitments related to employee benefits and associated economic hedging4,963 5,291 
Value of associated long-term assets(107)(104)
Tax benefits(1,196)(1,281)
Net commitments related to employee benefits3,660 3,906 
Net financial debt plus commitments31,139 30,593 
Net financial debt plus leases plus commitments39,797 39,238 



Telefónica, S.A. 14
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Free Cash Flow
The Group’s free cash flow is calculated starting from “Net cash flow provided by operating activities” as indicated in the consolidated statement of cash flows; deducting (Payments on investments)/Proceeds from the sale of investments in property, plant and equipment and intangible assets, net, adding the cash received from government grants and deducting dividends paid to non-controlling interests and payments of financed spectrum without explicit interest. The cash used to cancel commitments related to employee benefits (originally included in the Net cash flow provided by operating activities) is added as it represents the payments of principal of the debt incurred with those employees.
We believe that free cash flow is a meaningful measure for investors and analysts because it provides an
analysis of the cash flow available to protect solvency levels and to remunerate the parent company’s shareholders and other equity holders. The same measure is used internally by our management. Nevertheless, free cash flow as calculated by us should not be considered as a substitute for the various flows of cash as presented in the consolidated statements of cash flows.
The following table presents the reconciliation between Telefónica Group’s Net cash flow provided by operating activities as indicated in the consolidated statement of cash flows (see Note 25) and the free cash flow for the six-months periods ended June 30, 2023 and 2022:
Millions of eurosJanuary - June 2023January - June 2022
Net cash flow provided by operating activities (Note 25)5,289 4,739 
(Payments on investments)/Proceeds from the sale of property, plant and equipment and intangible assets, net (Note 25)(3,042)(2,632)
Government grants received8 — 
Dividends paid to minority shareholders (Note 25)(289)(170)
Payments related to cancellation of commitments related to employee benefits (Note 25)427 443 
Payments of financed spectrum without explicit interest (Note 25)(21)(21)
Free cash flow excluding lease principal payments2,372 2,359 
Lease principal payments (notes 21 and 25)(1,076)(1,011)
Free cash flow1,296 1,348 


Telefónica, S.A. 15
Condensed Consolidated Interim Financial Statements 2023
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Note 3. Accounting policies
The accounting policies applied in the preparation of the interim financial statements for the six-month period ended June 30, 2023 are consistent with those used in the preparation of the Group’s consolidated annual financial statements for the year ended December 31, 2022, except for the following new standards and amendments to standards published by the International Accounting Standards Board (IASB) and endorsed by the European Union for use in Europe, which are effective for annual periods beginning on or after January 1, 2023.
IFRS 17 Insurance Contracts
IFRS 17 Insurance Contracts is a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Applies to all types of insurance contracts (i.e., life, non-life, direct insurance and reinsurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers, covering all relevant accounting aspects.
Given the nature of the Group’s core business, the adoption of IFRS 17 did not have a significant impact on the Group’s consolidated equity at the date of transition to the new requirements (less than 1 million euros as of 1 January 2023). At the transition date, the balances of insurance and reinsurance contract assets and liabilities have been reclassified from receivables (payables) to specific line items within other current assets (liabilities) amounting to 132 million euros and 197 million euros, respectively (see Notes 14 and 19).
The disclosure requirements in the new standard will be considered in the annual consolidated financial statements, where appropriate on a materiality basis.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12
These amendments narrow the scope of the initial recognition exception, so that it does not apply to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences.
The application of these requirements for the current reporting period did not have a significant impact on the interim condensed consolidated financial statements of the Group.
International Tax Reform – Pillar Two Model Rules – Amendments to IAS 12
The amendments give companies temporary relief from accounting for deferred taxes arising from jurisdictions implementing the OECD international tax reform. The amendments also include targeted disclosure requirements to help investors better understand an entity’s exposure to income taxes arising from the reform, particularly before legislation implementing the rules is in effect, although these disclosures are not required for interim periods in the fiscal year ending 31 December 2023. At the date of authorization for issue of these condensed consolidated interim financial statements, the European Union’s endorsement process for the application of these amendments in Europe is in progress. Therefore, these amendments have had no impact on the Group's interim condensed consolidated financial statements and will be taken into consideration for the disclosures in the Group's annual consolidated financial statements.
Definition of Accounting Estimates – Amendments to IAS 8
These amendments clarify the distinction between changes in accounting estimates, and changes in accounting policies and the correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. The distinction between accounting estimates and accounting policies is important because changes in accounting estimates are applied prospectively to future transactions and events, whereas changes in accounting policies are generally applied retrospectively.
The Group's practice is consistent with these criteria and therefore these amendments had no impact on the Group’s interim condensed consolidated financial statements.


Telefónica, S.A. 16
Condensed Consolidated Interim Financial Statements 2023
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Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2
These amendments provide guidance and examples on how to apply the concept of materiality to accounting policy disclosures, the amendments require entities to disclose their "material" rather than their "significant" accounting policies.
The amendments had no impact on the Group’s interim condensed consolidated financial statements, but could affect the material accounting policy information in the Group’s annual consolidated financial statements.
New standards and amendments to standards issued but not effective as of June 30, 2023
At the date of preparation of the interim consolidated financial statements, the following IFRS and amendments had been published by the IASB, but their application was not mandatory:
Amendments to StandardsMandatory application: annual periods beginning on or after
Amendments to IAS 1Classification of Liabilities as Current and Non-Current1 January 2024
Amendments to IAS 1Non-current Liabilities with Covenants1 January 2024
Amendments to IFRS 16Lease Liability in a Sale and Leaseback1 January 2024
Amendments to IAS 7 and IFRS 7Supplier Finance Arrangements1 January 2024
Based on the analyses conducted to date, the Group estimates that the adoption of these new pronouncements will not have a significant impact on the consolidated financial statements in the initial period of application.


Telefónica, S.A. 17
Condensed Consolidated Interim Financial Statements 2023
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Note 4. Segment information
In 2023 the Telefónica Group is reporting financial information, both internally and externally, according to the following segments: Telefónica Spain, VMO2 (accounted for under the equity method), Telefónica Germany, Telefónica Brazil and Telefónica Hispam (formed by the Group's operators in Colombia, Mexico, Venezuela, Ecuador, Argentina, Chile, Peru and Uruguay). There have been no changes in the definition of the segments with respect to the previous year.
The segments referred to above include the information related to the fixed, wireless, cable, data, internet and television businesses and other digital services provided in each country. Inter-segment transactions are carried out at market prices.
Information relating to other Group companies not specifically included in these segments is reported under "Other companies", which includes Telefónica, S.A. and other holding companies, as well as companies whose main purpose is to provide cross-sectional services to Group companies, and other operations not included in the segments. The Incremental Group and BE-terna Group, acquired in 2022, and Cancom Group, acquired in 2021, are reported within "Other companies". "Other companies" also includes the share of results of investments accounted for by the equity method corresponding to fiber optic companies (see Note 10).
The Group centrally manages borrowing activities, mainly through Telefónica, S.A. and other companies not included in the segments, so most of the Group's financial assets and liabilities are reported under "Other companies". In addition, Telefónica, S.A. is the head of the Telefónica tax group in Spain. Therefore, a significant part of the deferred tax assets and liabilities is included under "Other companies". For these reasons, the results of the segments are disclosed up to operating income.
Revenues and expenses arising from intra-group invoicing for the use of the trademark and management services were eliminated from the operating results of each Group segment. The results of the holding companies also exclude dividends from Group companies and impairments of investments in Group companies. These adjustments have no impact on the Group’s consolidated results. In addition, segment reporting considers the impact of the purchase price allocation to the assets acquired and the liabilities assumed by the companies included in each segment. The assets and liabilities presented in each segment
are those managed by the heads of each segment, regardless of their legal structure.


Telefónica, S.A. 18
Condensed Consolidated Interim Financial Statements 2023    
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The following table presents income, CapEx information (capital expenditures in intangible assets and property, plant and equipment, see Notes 6 and 8) and acquisitions of rights of use (see Note 21) of the fully consolidated reportable segments:
January - June 2023
Millions of eurosTelefónica
Spain		VMO2Telefónica GermanyTelefónica
 Brazil		Telefónica HispamOther companiesEliminationsTotal Group
Revenues6,183 — 4,192 4,645 4,489 1,718 (1,049)20,178 
External revenues6,024 — 4,178 4,637 4,440 897 2 20,178 
Inter-segment revenues159 — 14 8 49 821 (1,051)— 
Other operating income and expenses (1)
(3,960)— (2,917)(2,740)(3,691)(1,621)1,017 (13,912)
OIBDA2,223 — 1,275 1,905 798 97 (32)6,266 
Depreciation and amortization(1,083)— (1,153)(1,195)(821)(115)19 (4,348)
Operating income1,140 — 122 710 (23)(18)(13)1,918 
Share of (loss) income of investments accounted for by the equity method(9)16 — — 5 (26)— (14)
Capital expenditures (CapEx)754 — 504 704 337 105 — 2,404 
Acquisitions of rights of use292 — 362 98 205 10 (18)949 
(1) Other operating income and expenses includes “Other income”, “Supplies”, “Personnel expenses” and “Other expenses”.
Telefónica, S.A. 19
Condensed Consolidated Interim Financial Statements 2023    
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January - June 2022
Millions of eurosTelefónica
Spain		VMO2 Telefónica GermanyTelefónica
 Brazil		Telefónica HispamOther companiesEliminationsTotal Group
Revenues6,164 — 3,949 4,199 4,526 1,499 (887)19,450 
External revenues6,053 — 3,938 4,191 4,471 799 (2)19,450 
Inter-segment revenues111 — 11 8 55 700 (885)— 
Other operating income and expenses (1)
(3,910)— (2,702)(2,485)(3,432)(1,421)845 (13,105)
OIBDA2,254 — 1,247 1,714 1,094 78 (42)6,345 
Depreciation and amortization(1,075)— (1,131)(1,133)(922)(94)19 (4,336)
Operating income1,179 — 116 581 172 (16)(23)2,009 
Share of (loss) income of investments accounted for by the equity method— 138 — — (4)(29)— 105 
Capital expenditures (CapEx)642 — 556 809 429 45 1 2,482 
Acquisitions of rights of use187 — 340 321 264 7 7 1,126 
(1) Other operating income and expenses includes “Other income”, “Supplies”, “Personnel expenses” and “Other expenses”.
Telefónica, S.A. 20
Condensed Consolidated Interim Financial Statements 2023    
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The table below shows the income, CapEx and acquisitions of rights of use of VMED O2 UK Ltd. VMED O2 UK Ltd is a joint venture 50% owned by Telefónica and Liberty Group and is recorded under the equity method (see Note 9). The tables below show the information of the joint venture at 100%.

VMO2
Millions of eurosJanuary-June, 2023January-June, 2022
Revenues6,063 5,996 
Other operating income and expenses(3,959)(3,771)
OIBDA2,104 2,225 
Depreciation and amortization(2,019)(2,065)
Operating income85 160 
Share of income (loss) of investments accounted for by the equity method2 1 
Financial income18 9 
Financial expenses(664)(457)
Realised and unrealised gains on derivative instruments, net(27)1,681 
Foreign currency transaction losses, net644 (1,158)
Net financial expense(29)75 
Result before taxation58 236 
Taxes(37)(41)
Result for the period (100% VMO2)21 195 
50% attributable to Telefónica Group10 97 
Share-based compensation 6 8 
Other adjustments— 33 
Share of income (loss) of investments accounted for by the equity method16 138 
Capital expenditures (CapEx) (100% VMO2)1,209 1,270 
Acquisitions of rights of use (100% VMO2)61 64 
Telefónica, S.A. 21
Condensed Consolidated Interim Financial Statements 2023    
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The segmentation of assets and liabilities of the reportable segments is as follows:
June 2023
Millions of eurosTelefónica
Spain		VMO2Telefónica GermanyTelefónica
 Brazil		Telefónica HispamOther companiesEliminationsTotal Group
Fixed assets14,188 — 11,280 19,204 7,734 2,269 (11)54,664 
Rights of use 1,772 — 3,276 1,959 1,256 96 (44)8,315 
Investments accounted for by the equity method247 10,772 — 3 157 382 — 11,561 
Financial assets and other non-currents assets1,005 — 929 1,197 1,706 5,954 (2,637)8,154 
Deferred tax assets2,283 — 461 427 726 1,053 — 4,950 
Other current financial assets34 — 55 54 291 4,774 (3,954)1,254 
Non-current assets and disposal groups held for sale— — — — 230 — — 230 
Total allocated assets26,711 10,772 18,414 26,641 16,363 23,024 (12,955)108,970 
Non-current financial liabilities1,890 — 1,301 789 5,781 29,490 (5,232)34,019 
Non-current lease liabilities1,300 — 2,587 1,422 1,205 38 (22)6,530 
Deferred tax liabilities89 — 264 1,020 778 932 — 3,083 
Current financial liabilities519 — 396 262 1,226 7,063 (5,235)4,231 
Current lease liabilities 432 — 575 738 406 21 (15)2,157 
Liabilities associated with non-current assets and disposal groups held for sale
— — — — 12 — — 12 
Total allocated liabilities14,963 — 9,969 10,162 13,930 41,643 (12,885)77,782 
Telefónica, S.A. 22
Condensed Consolidated Interim Financial Statements 2023    
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December 2022
Millions of eurosTelefónica
Spain		VMO2Telefónica GermanyTelefónica
 Brazil		Telefónica HispamOther companiesEliminationsTotal Group
Fixed assets14,285 — 11,602 18,217 7,870 2,237 (9)54,202 
Rights of use 1,722 — 3,277 2,048 1,169 100 (37)8,279 
Investments accounted for by the equity method252 10,779 — — 146 410 — 11,587 
Financial assets and other non-currents assets875 — 992 984 1,578 6,082 (2,410)8,101 
Deferred tax assets2,395 — 463 485 612 929 — 4,884 
Other current financial assets32 — 34 162 222 7,435 (5,441)2,444 
Non-current assets and disposal groups held for sale— — — — — 7 — 7 
Total allocated assets27,917 10,779 19,142 24,875 15,951 26,288 (15,310)109,642 
Non-current financial liabilities2,089 — 1,510 653 2,502 30,425 (2,120)35,059 
Non-current lease liabilities1,317 — 2,663 1,531 1,115 45 (14)6,657 
Deferred tax liabilities95 — 274 1,032 744 922 — 3,067 
Current financial liabilities1,840 — 128 350 4,120 8,449 (10,867)4,020 
Current lease liabilities392 — 597 629 402 19 (19)2,020 
Liabilities associated with non-current assets and disposal groups held for sale— — — — — — — — 
Total allocated liabilities16,782 — 10,246 9,437 13,861 42,869 (15,261)77,934 


Telefónica, S.A. 23
Condensed Consolidated Interim Financial Statements 2023    
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The detail of assets and liabilities of VMED O2 UK Ltd is as follows (amounts corresponding to 100% of the company, see Note 9):
VMO2
Millions of euros06/30/202312/31/2022
Fixed assets43,285 42,576 
Rights of use830 862 
Financial assets and other non-currents assets2,688 2,763 
Deferred tax assets54 79 
Other current financial assets612 511 
Total assets51,406 50,062 
Non-current financial liabilities20,991 19,668 
Non-current lease liabilities723 725 
Deferred tax liabilities— 1 
Current financial liabilities3,590 3,248 
Current lease liabilities193 221 
Total liabilities29,985 28,626 
Telefónica, S.A. 24
Condensed Consolidated Interim Financial Statements 2023    
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The detail of revenues of the fully consolidated reportable segments is as follows:
Millions of eurosJanuary - June 2023January - June 2022
SegmentsFixedMobileOther and elims.TotalFixedMobileOther and elims.Total
T. Spain (1)
6,183 6,164 
T. Germany409 3,774 9 4,192 399 3,540 10 3,949 
T. Brazil1,407 3,238 — 4,645 1,357 2,842 — 4,199 
T. Hispam1,508 2,981 — 4,489 1,582 2,944 — 4,526 
Other and inter-segment eliminations669 669 612 612 
Total Group20,178 19,450 
Note: In the countries of Telefónica Hispam segment with separate fixed and mobile operating companies, intercompany revenues were not considered.
(1) The detail of revenues for Telefónica Spain is shown in the table below.

Given the convergence reached at Telefónica Spain due to the high penetration of the convergent offers, the revenue breakdown by fixed and mobile is less relevant in this segment. For this reason, the following revenue breakdown is shown, which Management believes is more meaningful.
Millions of euros
Telefónica SpainJanuary - June 2023January - June 2022
 Retailers
4,857 4,772 
    Wholesalers, mobile handsets and others
1,326 1,392 
Total 6,183 6,164 
Telefónica, S.A. 25
Condensed Consolidated Interim Financial Statements 2023
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Note 5. Business combinations
Finalization of the purchase price allocation of Be-Terna
On June 9, 2022, Telefónica Cybersecurity & Cloud Tech, S.L.U. completed the acquisition of 100% of the shares of the German group BE-terna Acceleration Holding GmbH and affiliates ("BE-terna Group"), for a 191 million euros consideration (including potential contingent payments linked to its future performance). In addition, at the closing of the transaction a payment was made in the amount of 162 million euros to cancel payment obligations of the acquired companies.
At the date of authorization for issue of the 2022 consolidated financial statements of the Telefónica Group the purchase price allocation was provisional. In the first half of 2023 the preliminary allocation was reviewed within the twelve-month period from the acquisition date, resulting in a 3 million euro increase in goodwill.
The following table presents the consideration, the fair value of assets and liabilities identified at the acquisition date and the final goodwill:
Millions of euros
Share purchase price191 
Payment obligations cancelled162 
Total353 
Intangible assets73 
Customer relationships53 
Other intangible assets20 
Property, plant and equipment6 
Rights of use5 
Accounts receivable19 
Other assets12 
Cash and cash equivalents17 
Lease liabilities(5)
Trade payables(9)
Deferred tax liabilities(20)
Current tax payables(6)
Other liabilities(21)
Accounting value of net assets71 
Goodwill282 

Finalization of the purchase price allocation of Incremental
On March 21, 2022, Telefónica Telefónica Tech UK & Ireland, Ltd completed the acquisition of 100% of the shares of the British group Perpetual TopCo, Limited and affiliates (Incremental) for a 104 million euros consideration (including potential contingent payments linked to its future performance). In addition, at the closing of the transaction a payment was made in the amount of 91 million euros to cancel payment obligations of the acquired companies.
At the date of authorization for issue of the 2022 consolidated financial statements of the Telefónica Group the purchase price allocation was provisional. In the first half of 2023 the preliminary allocation was reviewed within the twelve-month period from the acquisition date, without any change in the fair value of the assets and liabilities acquired.
Telefónica, S.A. 26
Condensed Consolidated Interim Financial Statements 2023
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Note 6. Intangible assets
The composition and movements in "intangible assets" in the first half of 2023 and 2022 are as follows:
January-June 2023
Millions of euros
Balance at 12/31/2022
AdditionsAmortizationTransfers and othersTranslation differences and
hyperinflation adjustments		Business
acquisitions
Balance at 06/30/2023
Service concession
arrangements and
licenses		7,550 12 (405)(21)238 — 7,374 
Software2,800 191 (664)639 89 — 3,055 
Customer base721 — (179)(4)7 (3)542 
Trademarks263 — (17)1 8 — 255 
Other intangible
assets		39 10 (9)1 1 6 48 
Intangible assets in
process		644 399 — (528)13 — 528 
Total intangible
assets		12,017 612 (1,274)88 356 3 11,802 
January-June 2022
Millions of euros
Balance at 12/31/2021
AdditionsAmortizationTransfers and othersTranslation differences and hyperinflation adjustmentsBusiness
acquisitions
Balance at 06/30/2022
Service concession arrangements and licenses7,328 132 (414)— 497 506 8,049 
Software2,494 189 (664)481 149 — 2,649 
Customer base971 — (175)2 5 45 848 
Trademarks276 — (17)1 21 1 282 
Other intangible assets42 13 (12)1 1 — 45 
Intangible assets in process614 382 — (434)23 — 585 
Total intangible assets11,725 716 (1,282)51 696 552 12,458 
Telefónica, S.A. 27
Condensed Consolidated Interim Financial Statements 2023
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The gross cost, accumulated amortization and impairment losses of intangible assets in the first half of 2023 and December 31, 2022 are as follows:
Balance at June 30, 2023
Millions of eurosGross costAccumulated
amortization		Impairment
losses		Intangible
assets
Service concession arrangements and licenses16,348 (8,806)(168)7,374 
Software18,229 (15,159)(15)3,055 
Customer base5,145 (4,603)— 542 
Trademarks966 (711)— 255 
Other intangible assets857 (807)(2)48 
Intangible assets in process536 — (8)528 
Total intangible assets42,081 (30,086)(193)11,802 
Balance at December 31, 2022
Millions of eurosGross costAccumulated
amortization		Impairment
losses		Intangible
assets
Service concession arrangements and licenses15,837 (8,123)(164)7,550 
Software17,158 (14,344)(14)2,800 
Customer base5,089 (4,368)— 721 
Trademarks944 (681)— 263 
Other intangible assets870 (829)(2)39 
Intangible assets in process652 — (8)644 
Total intangible assets40,550 (28,345)(188)12,017 
CapEx additions by segment are detailed in Note 4.
"Business acquisitions" in the first half of 2022 corresponded mainly to the acquisition of Oi (see Note 2).
Telefónica, S.A. 28
Condensed Consolidated Interim Financial Statements 2023
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Note 7. Goodwill
The movement in goodwill assigned to each Group segment was as follows:
January-June 2023
Millions of euros
Balance at 12/31/2022
AdditionsTransfersExchange rate impact
Balance at 06/30/2023
Telefónica Spain4,291 — — — 4,291 
Telefónica Brazil7,752 5 — 502 8,259 
Telefónica Germany4,386 — — — 4,386 
Telefónica Hispam1,215 — (36)58 1,237 
Others827 18 — 15 860 
Total18,471 23 (36)575 19,033 
January-June 2022
Millions of euros
Balance at 12/31/2021
AdditionsTransfersExchange rate impact and other
Balance at 06/30/2022
Telefónica Spain4,291 — — — 4,291 
Telefónica Brazil6,278 696 — 959 7,933 
Telefónica Germany4,386 — — — 4,386 
Telefónica Hispam1,166 — — 49 1,215 
Others398 515 (5)(8)900 
Total16,519 1,211 (5)1,000 18,725 
On July 6, 2023, Telefónica Hispanoamérica, S.A. entered into share subscription agreements with the group Kohlberg Kravis Roberts – KKR & Co, Inc. and Entel Perú S.A., for the entry of both companies, with 54% and 10%, respectively, into the share capital of Pangeaco, S.A.C., the wholesale fiber-to-the-home (“FTTH”) company in Peru, maintaining Telefónica Hispam 36% of the shares of said company (see Note 28). As part of the transaction Telefónica del Perú S.A.A. and Entel Perú will sell to Pangeaco certain assets of their FTTH infrastructure. This operation is part of the Group's strategy, which includes, among other objectives, an active portfolio management policy of its businesses and assets, based on value creation.
The amount in transfers of Telefónica Hispam in the first half of 2023 corresponds to the estimation of goodwill of the cash generating unit Telefónica del Perú allocated to this agreement, which has been reclassified to "Non-current assets and disposal groups held for sale" (see Note 27).
Additions of Telefónica Brazil in the first half of 2022 corresponded to the preliminary goodwill from the acquisition of the assets of the mobile business of Oi Group (see Note 2). At the date of authorization for issue of the 2022 consolidated financial statements of the Telefónica Group the purchase price allocation was concluded, resulting in a final goodwill amounting to 676 million euros.
Additions in the first half of 2022 also included the preliminary goodwill of Incremental and BE-Terna, amounting to 169 million euros and 337 million euros, respectively. As of the date of preparation of these interim financial statements, the allocation of the purchase price of these transactions has been concluded (see Note 5).
Telefónica, S.A. 29
Condensed Consolidated Interim Financial Statements 2023
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In order to test for impairment, goodwill was allocated to the different cash-generating units (CGUs), which are grouped into the following reportable operating segments:
Millions of euros
06/30/2023
12/31/2022
Telefónica Spain4,291 4,291 
Telefónica Brazil8,259 7,752 
Telefónica Germany4,386 4,386 
Telefónica Hispam1,237 1,215 
Colombia153 135 
Ecuador135 137 
Chile684 652 
Peru238 265 
Uruguay24 23 
Others T. Hispam3 3 
Other companies860 827 
Telefónica Tech UK & Ireland444 429 
BE-terna282 279 
Others134 119 
TOTAL19,033 18,471 
At the end of 2022, the Group carried out the annual impairment test, using the business plans of the different cash-generating units to which the goodwill is allocated, approved by the Telefónica Board of Directors at the end of 2022.
As of June 30, 2023, the Group has evaluated the existence of indicators of impairment of the value of the cash-generating units, with special emphasis on those whose recoverable value was closest to the carrying value as of December 31, 2022. This evaluation has included, among other aspects, the examination of compliance of the main operating indicators both with respect to the end of the first half of 2023 and the most recent forecasts for the end of the year, the evolution of the macroeconomic situation and the analysis of the variation of the applicable discount rates and perpetuity growth rates. As a result of this analysis, there are not indicators that justify the need to carry out a new impairment test for these cash-generating units.
The Group will carry out the annual impairment test in the second half of the year, after the preparation, and approval by the Board of Directors of Telefónica, of the new business plans of the different cash-generating units to which the Group's goodwill is allocated.
Telefónica, S.A. 30
Condensed Consolidated Interim Financial Statements 2023
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Note 8. Property, plant and equipment
The composition and movements in "Property, plant and equipment" in the first half of 2023 and 2022 are as follows:
January-June 2023
Millions of euros
Balance at 12/31/2022
AdditionsDepreciationDisposalsTransfers
and
others		Translation
differences and
hyperinflation
adjustments
Balance at 06/30/2023
Land and buildings2,641 4 (117)(8)61 67 2,648 
Plant and machinery18,165 378 (1,804)(9)1,201 489 18,420 
Furniture, tools and
other items		576 29 (102)(1)59 16 577 
PP&E in progress2,332 1,381 — (6)(1,577)54 2,184 
Total PP&E23,714 1,792 (2,023)(24)(256)626 23,829 
January-June 2022
Millions of euros
Balance at 12/31/2021
AdditionsDepre-ciationDisposalsTransfers and othersTranslation differences and hyperinflation adjustmentsBusiness
acquisi-tions
Balance at 06/30/2022
Land and buildings2,660 5 (110)(13)28 123 5 2,698 
Plant and machinery17,752 556 (1,839)(7)717 1,156 27 18,362 
Furniture, tools and other items552 31 (102)— 33 40 3 557 
PP&E in progress1,761 1,174 — (10)(924)104 1 2,106 
Total PP&E22,725 1,766 (2,051)(30)(146)1,423 36 23,723