| Financial instruments |
The main financial instruments and their carrying amounts,
by category, are as follows:
| | |
| |
Carrying amounts | |
| | |
Notes | |
As of
September 30,
2022 | | |
As of
December 31,
2021 | |
| Financial assets | |
| |
| | |
| |
| Amortized cost | |
| |
| | |
| |
| Cash and cash equivalents | |
5 | |
| 4,210 | | |
| 2,550 | |
| Related parties - assets | |
9.1 | |
| 264 | | |
| 114 | |
| Trade receivables and other accounts receivable | |
| |
| 164 | | |
| 169 | |
| Fair value through income | |
| |
| | | |
| | |
| Financial instruments – hedge measured at fair value | |
14.6.1 | |
| 122 | | |
| 32 | |
| Fair value through other comprehensive income | |
| |
| | | |
| | |
| Accounts receivable with credit card companies and sales tickets | |
| |
| 341 | | |
| 155 | |
| Financial liabilities | |
| |
| | | |
| | |
| Other financial liabilities - amortized cost | |
| |
| | | |
| | |
| Related parties - liabilities | |
9.1 | |
| (1,422 | ) | |
| (368 | ) |
| Trade payables | |
13 | |
| (9,967 | ) | |
| (5,942 | ) |
| Financing through acquisition of assets | |
| |
| (387 | ) | |
| (197 | ) |
| Borrowings and financing | |
14.6.1 | |
| (1,220 | ) | |
| (1,210 | ) |
| Debentures and promissory notes | |
14.7 | |
| (10,574 | ) | |
| (6,446 | ) |
| Lease liabilities | |
16.1 | |
| (7,416 | ) | |
| (4,051 | ) |
| Fair value through income | |
| |
| | | |
| | |
| Borrowings and financing, including derivatives | |
14.6.1 | |
| (324 | ) | |
| (341 | ) |
| Financial instruments – hedge measured at fair value | |
14.6.1 | |
| (17 | ) | |
| (36 | ) |
| Net exposure | |
| |
| (26,226 | ) | |
| (15,571 | ) |
The fair value of other financial
instruments detailed in the table above approximates the carrying amount based on the existing payment terms and conditions. The financial
instruments measured at amortized cost, the fair values of which differ from the carrying amounts, are disclosed in note 14.4.
| 14.1 | Considerations on risk factors that may affect the businesses
of the Company |
| ● | Cash equivalents: In order to minimize the credit risk, the investment
policies adopted establish investments in financial institutions approved by the Company’s Financial Committee, considering the
monetary limits and evaluations of financial institutions, which are regularly updated. |
| ● | The credit risk related to trade receivables is minimized by the fact
that a large part of installment sales is made with credit cards. These receivables may be advanced at any time, without right of recourse,
with banks or credit card companies, for the purpose of providing working capital, generating the derecognition of the accounts receivable.
In addition, the acquirers used by the Company are related to first-tier financial institutions with low credit risk. Additionally, mainly
for trade receivables collected in installments, the Company monitors the risk for the granting of credit and for the periodic analysis
of the expected loss balances. |
The
Company also incurs counterparty risk related to derivative instruments, this risk is mitigated by the policy of carrying out transactions
according to policies approved by governance bodies. There
are no amounts receivable that individually account for more than 5% of the accounts receivable or revenues. The Company obtains borrowings and
financing with major financial institutions in order to meet cash requirements for investments. Accordingly, the Company is mainly exposed
to the risk of significant fluctuations in the interest rate, especially the rate related to derivative liabilities (foreign currency
exposure hedge) and debts indexed to CDI. The balance of cash and cash equivalents, indexed to CDI, partially offsets the risk of fluctuations
in the interest rates.
| 14.1.3 | Foreign currency exchange rate risk |
The fluctuations in the exchange rates
may increase the balances of borrowings in foreign currency and for this reason the Company uses derivative financial instruments such
as swaps to mitigate the foreign exchange rate risk, converting the cost of debt into domestic currency and interest rates.
| 14.1.4 | Capital risk management |
The main objective of the Company’s
capital management is to ensure that the Company maintains its credit rating and a well-balanced equity ratio, in order to support businesses
and maximize shareholder value. The Company manages the capital structure and makes adjustments considering the changes in the economic
conditions. The capital structure is as follows:
| | |
As of | |
| | |
September 30,
2022 | | |
December 31,
2021 | |
| Borrowings, financing, debentures and promissory notes | |
| (12,135 | ) | |
| (8,033 | ) |
| (-) Cash and cash equivalents | |
| 4,210 | | |
| 2,550 | |
| (-) Derivative financial instruments | |
| 122 | | |
| 32 | |
| Net debt | |
| (7,803 | ) | |
| (5,451 | ) |
| Shareholders´ equity | |
| 3,595 | | |
| 2,766 | |
| % Net debt over shareholders´ equity | |
| 217 | % | |
| 197 | % |
| 14.1.5 | Liquidity risk management |
The Company manages liquidity risk
through daily monitoring of cash flows and control of maturities of financial assets and liabilities. The table below summarizes the maturity
profile of the Company’s financial liabilities as of September 30, 2022.
| | |
Less than
1 year | | |
1 to 5 years | | |
More than
5 years | | |
Total | |
| Borrowings and financing | |
| 461 | | |
| 1,380 | | |
| - | | |
| 1,841 | |
| Debentures and promissory notes | |
| 1,158 | | |
| 8,931 | | |
| 5,903 | | |
| 15,992 | |
| Derivative financial instruments | |
| 209 | | |
| 259 | | |
| (1,125 | ) | |
| (657 | ) |
| Lease liabilities | |
| 1,186 | | |
| 5,192 | | |
| 11,615 | | |
| 17,993 | |
| Trade payable | |
| 9,263 | | |
| 704 | | |
| - | | |
| 9,967 | |
| Total | |
| 12,277 | | |
| 16,466 | | |
| 16,393 | | |
| 45,136 | |
The information was prepared considering
the undiscounted cash flows of financial liabilities based on the earliest date the Company may be required to make the payment or be
eligible to receive the payment. To the extent that interest rates are floating, the undiscounted amount is obtained based on interest
rate curves for the period ended September 30, 2022. Therefore, certain balances presented do not agree with the balances presented in
the balance sheets.
| 14.2 | Derivative financial instruments |
| | |
Notional value | | |
Fair value | |
| | |
As of
September 30,
2022 | | |
As of
December 31,
2021 | | |
As of
September 30,
2022 | | |
As of
December 31,
2021 | |
| Swap with hedge accounting | |
| | | |
| | | |
| | | |
| | |
| Hedge item (debt) | |
| 2,360 | | |
| 1,888 | | |
| 2,348 | | |
| 1,869 | |
| Long position | |
| | | |
| | | |
| | | |
| | |
| Hedge instrument - Fixed rate | |
| 106 | | |
| 106 | | |
| 54 | | |
| 60 | |
| Hedge instrument - USD + Fixed | |
| 282 | | |
| 282 | | |
| 271 | | |
| 281 | |
| Hedge instrument - CRI | |
| 1,972 | | |
| 1,500 | | |
| 2,023 | | |
| 1,528 | |
| | |
| | | |
| | | |
| | | |
| | |
| Short position | |
| (2,360 | ) | |
| (1,888 | ) | |
| (2,243 | ) | |
| (1,873 | ) |
| Net hedge position | |
| - | | |
| - | | |
| 105 | | |
| (4 | ) |
Realized and unrealized gains and
losses on these contracts during the nine-month period ended September 30, 2022, are recorded as financial revenues or expenses, net and
the balance receivable at fair value is R$105 (balance payable of R$4 as of December 31, 2021). The assets are recorded as “derivative
financial instruments” and the liability as “borrowings and financing”. The effects of the hedge at fair value
through profit or loss for the period ended September 30, 2022 resulted in a gain of R$47, recorded under Cost of debt, see note 23 (gain
of R$12 as of September 30, 2021).
| 14.2.1 | Fair values of derivative financial instruments |
Fair value is the amount for which
an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. The fair values are calculated based
on projected future cash flow, using the future CDI curves released by B3, plus the operation spreads, and discounting them to present
value using the same CDI curves released by B3. The fair values of exchange coupon
swaps versus CDI rate were obtained using the exchange rates effective at the reporting date and the rates projected by the market based
on the currency coupon curves. In order to calculate the coupon of
foreign currency indexed-positions the straight-line convention - 360 consecutive days was adopted and to calculate the coupon of CDI
indexed-positions the exponential convention - 252 business days was adopted.
| 14.3 | Sensitivity analysis of financial instruments |
According to Management’s assessment,
the most probable scenario considered was, on the maturity date of each transaction, the market curves (currencies and interest) of B3. Therefore, in the probable scenario
(I) there is no impact on the fair value of financial instruments. For scenarios (II) and (III), for the exclusive effect of sensitivity
analysis, a deterioration of 5% and 10%, respectively, in the risk variables was considered, up to one year of financial instruments. For a probable scenario, the weighted
exchange rate set was R$5.71 on the due date, and the weighted interest rate was 13.19% per year. In the case of derivative financial
instruments (aiming at hedging the financial debt), the variations of the scenarios are accompanied by the respective hedges, indicating
that the effects are not significant. The Company disclosed the net exposure
of the derivative financial instruments, the corresponding financial instruments and certain financial instruments in the sensitivity
analysis table below, for each of the mentioned scenarios:
| | |
| | |
Risk | |
Carrying | | |
As of
September 30, | | |
Market projections | |
| Transactions | |
Notes | | |
(CDI Increase) | |
Amount | | |
2022 | | |
Scenario (I) | | |
Scenario (II) | | |
Scenario (III) | |
| Borrowings and financing | |
| 14.6.1 | | |
CDI + 1.48% per year | |
| 1,220 | | |
| (1,227 | ) | |
| (482 | ) | |
| (493 | ) | |
| (503 | ) |
| Borrowings and financing (fixed rate) | |
| 14.6.1 | | |
TR + 9.80% per year | |
| 52 | | |
| (51 | ) | |
| (56 | ) | |
| (60 | ) | |
| (65 | ) |
| Borrowings and financing (foreign currency) | |
| 14.6.1 | | |
USD + 1.06% per year | |
| 272 | | |
| (271 | ) | |
| (23 | ) | |
| (37 | ) | |
| (52 | ) |
| Debentures and promissory notes | |
| 14.6.1 | | |
CDI + 1.47% per year | |
| 10,574 | | |
| (10,676 | ) | |
| (1,508 | ) | |
| (1,584 | ) | |
| (1,659 | ) |
| Total net effect (loss) | |
| | | |
| |
| 12,118 | | |
| (12,225 | ) | |
| (2,069 | ) | |
| (2,174 | ) | |
| (2,279 | ) |
| Cash and cash equivalents | |
| 5 | | |
86.66% of CDI | |
| | | |
| 4,210 | | |
| 574 | | |
| 602 | | |
| 631 | |
| Net exposure loss | |
| | | |
| |
| | | |
| (8,015 | ) | |
| (1,495 | ) | |
| (1,572 | ) | |
| (1,648 | ) |
| 14.4 | Fair value measurement |
The Company discloses the fair value
of financial instruments measured at fair value and of financial instruments measured at amortized cost the fair values of which differ
from the carrying amounts, pursuant to CPC 46/IFRS 13, which address the concepts of measurement and disclosure requirements. The fair
value hierarchy levels are defined below: Level
1: fair value measurement at the balance sheet date using quoted prices (unadjusted) in active markets for identical assets or liabilities
to which the entity may have access at the measurement date. Level 2: fair value measurement at
the balance sheet date using other significant observable assumptions for the asset or liability, either directly or indirectly, except
quoted prices included in Level 1. Level 3: fair value measurement at
the balance sheet date using non-observable data for the asset or liability. The fair values of cash and cash equivalents,
trade receivables and trade payables approximate their carrying amounts. The table below presents the fair
value hierarchy of financial assets and liabilities measured at fair value and of financial instruments measured at amortized cost, the
fair value of which is being disclosed in the condensed interim financial statements:
| | |
Carrying amount | | |
Fair value | | |
| |
| | |
As of
September 30,
2022 | | |
As of
December 31,
2021 | | |
As of
September 30,
2022 | | |
As of
December 31,
2021 | | |
Level | |
| Trade receivables with credit cards companies and sales vouchers | |
| 341 | | |
| 155 | | |
| 341 | | |
| 155 | | |
| 2 | |
| Swaps of annual rates between currencies | |
| (17 | ) | |
| (11 | ) | |
| (17 | ) | |
| (11 | ) | |
| 2 | |
| Interest rate swaps | |
| 2 | | |
| 4 | | |
| 2 | | |
| 4 | | |
| 2 | |
| Interest rate swaps - CRI | |
| 120 | | |
| 3 | | |
| 120 | | |
| 3 | | |
| 2 | |
| Borrowings and financing (fair value) | |
| (324 | ) | |
| (341 | ) | |
| (324 | ) | |
| (341 | ) | |
| 2 | |
| Borrowings and financing (amortized cost) | |
| (11,794 | ) | |
| (7,656 | ) | |
| (11,621 | ) | |
| (7,372 | ) | |
| 2 | |
| | |
| (11,672 | ) | |
| (7,846 | ) | |
| (11,499 | ) | |
| (7,562 | ) | |
| | |
There was no change between the fair
value measurement levels in the period ended September 30, 2022. Interest rate and foreign currency
swaps and borrowings and financing are classified as level 2 since the readily observable inputs are used, such as expected interest rate
and current and future foreign exchange rate.
| 14.5 | Transactions with derivative financial instruments |
The Company has derivative contracts
with the financial institutions: Itaú BBA, Scotiabank and BR Partners. The outstanding derivative financial
instruments are presented in the table below:
| | |
| | |
| |
As of | |
| |
Notional | | |
| |
September 30, | | |
December 31, | |
| Description Risk | |
(millions) | | |
Due date | |
2022 | | |
2021 | |
| Debt | |
| | |
| |
| | |
| |
| USD – BRL | |
US$ | 50 | | |
2023 | |
| (17 | ) | |
| (11 | ) |
| | |
| | | |
| |
| | | |
| | |
| Debt | |
| | | |
| |
| | | |
| | |
| IPCA – BRL | |
R$ | 1,972 | | |
2028, 2029 and 2031 | |
| 120 | | |
| 3 | |
| | |
| | | |
| |
| | | |
| | |
| Interest rate swaps registered at CETIP | |
| | | |
| |
| | | |
| | |
| Fixed rate x CDI | |
R$ | 54 | | |
2027 | |
| 1 | | |
| 2 | |
| Fixed rate x CDI | |
R$ | 52 | | |
2027 | |
| 1 | | |
| 2 | |
| Derivatives - Fair value hedge | |
| | | |
| |
| 105 | | |
| (4 | ) |
| 14.6 | Borrowings and financing |
| | |
| |
As of |
| | |
Weighted
average rate | |
September 30,
2022 | | |
December 31,
2021 | |
| Current | |
| |
| | | |
| | |
| Debentures and promissory notes | |
| |
| | | |
| | |
| Debentures and promissory notes | |
CDI + 1.55% per year | |
| 532 | | |
| 194 | |
| Borrowing costs | |
| |
| (22 | ) | |
| (14 | ) |
| Total debentures and promissory notes | |
| |
| 510 | | |
| 180 | |
| | |
| |
| | | |
| | |
| Borrowings and financing in domestic currency | |
| |
| | | |
| | |
| Working capital | |
TR + 9.80% | |
| 12 | | |
| 14 | |
| Working capital | |
CDI + 1.83% per year | |
| 26 | | |
| 419 | |
| Borrowing costs | |
| |
| (4 | ) | |
| (4 | ) |
| Total domestic currency | |
| |
| 34 | | |
| 429 | |
| | |
| |
| | | |
| | |
| In foreign currency | |
| |
| | | |
| | |
| Working capital | |
USD + 1.06% per year | |
| 272 | | |
| 1 | |
| Total foreign currency | |
| |
| 272 | | |
| 1 | |
| Total of borrowings and financing | |
| |
| 306 | | |
| 430 | |
| | |
| |
| | | |
| | |
| Derivative financial instruments | |
| |
| | | |
| | |
| Swap contracts | |
CDI + 0.86% per year | |
| (17 | ) | |
| (4 | ) |
| Swap contracts | |
CDI + 1.35% per year | |
| 17 | | |
| 3 | |
| Total derivative financial instruments | |
| |
| - | | |
| (1 | ) |
| Total current | |
| |
| 816 | | |
| 609 | |
| | |
| |
As of | |
| | |
Weighted
average rate | |
September 30,
2022 | | |
December 31,
2021 | |
| Non-current | |
| |
| | |
| |
| Debentures and promissory notes | |
| |
| | |
| |
| Debentures and promissory notes | |
CDI + 1.46% per year | |
| 10,144 | | |
| 6,329 | |
| Borrowing costs | |
| |
| (80 | ) | |
| (63 | ) |
| Total debentures and promissory notes | |
| |
| 10,064 | | |
| 6,266 | |
| | |
| |
| | | |
| | |
| Borrowings and financing in domestic currency | |
| |
| | | |
| | |
| Working capital | |
TR + 9.80% | |
| 41 | | |
| 47 | |
| Working capital | |
CDI + 1.47% per year | |
| 1,200 | | |
| 800 | |
| Borrowing costs | |
| |
| (3 | ) | |
| (5 | ) |
| Total domestic currency | |
| |
| 1,238 | | |
| 842 | |
| | |
| |
| | | |
| | |
| In foreign currency | |
| |
| | | |
| | |
| Working capital | |
USD + 1.06% per year | |
| - | | |
| 279 | |
| Total foreign currency | |
| |
| - | | |
| 279 | |
| Total of borrowings and financing | |
| |
| 1,238 | | |
| 1,121 | |
| | |
| |
| | | |
| | |
| Derivative financial instruments | |
| |
| | | |
| | |
| Swap contracts | |
CDI + 0.85% per year | |
| (105 | ) | |
| (28 | ) |
| Swap contracts | |
CDI + 1.35% per year | |
| - | | |
| 33 | |
| Total derivative financial instruments | |
| |
| (105 | ) | |
| 5 | |
| Total non-current | |
| |
| 11,197 | | |
| 7,392 | |
| | |
| |
| | | |
| | |
| Total | |
| |
| 12,013 | | |
| 8,001 | |
| | |
| |
| | | |
| | |
| Current assets | |
| |
| 17 | | |
| 4 | |
| Non-current assets | |
| |
| 105 | | |
| 28 | |
| Current liabilities | |
| |
| 833 | | |
| 613 | |
| Non-current liabilities | |
| |
| 11,302 | | |
| 7,420 | |
| | |
Amounts | |
| Balance as of December 31, 2020 | |
| 7,763 | |
| Funding | |
| 4,353 | |
| Interest provision | |
| 356 | |
| Swap contracts | |
| 70 | |
| Mark-to-market | |
| (2 | ) |
| Exchange rate and monetary variation | |
| (2 | ) |
| Debt modification impact | |
| (63 | ) |
| Borrowing costs | |
| 45 | |
| Interest amortization | |
| (297 | ) |
| Principal amortization | |
| (4,072 | ) |
| Swap amortization | |
| 1 | |
| Balance as of September 30, 2021 | |
| 8,152 | |
| | |
| | |
| Balance as of December 31, 2021 | |
| 8,001 | |
| Funding | |
| 3,560 | |
| Interest provision | |
| 1,034 | |
| Swap contracts | |
| 45 | |
| Mark-to-market | |
| (92 | ) |
| Exchange rate and monetary variation | |
| (9 | ) |
| Borrowing costs | |
| 19 | |
| Interest amortization | |
| (426 | ) |
| Principal amortization | |
| (58 | ) |
| Swap amortization | |
| (61 | ) |
| Balance as of September 30, 2022 | |
| 12,013 | |
| 14.6.3 | Schedule of non-current maturities |
| Maturity | |
Amounts | |
| From 1 to 2 years | |
| 2,298 | |
| From 2 to 3 years | |
| 3,719 | |
| From 3 to 4 years | |
| 556 | |
| From 4 to 5 years | |
| 398 | |
| More than 5 years | |
| 4,309 | |
| Total | |
| 11,280 | |
| | |
| | |
| Borrowing Cost | |
| (83 | ) |
| Total | |
| 11,197 | |
| 14.7 | Debentures and promissory notes |
| | |
| |
| | |
| | |
Date | |
| |
| | |
As
of | |
| | |
Type | |
Issue amount
(in thousands) | | |
Outstanding
Debentures (units) | | |
Issuance | |
Maturity | |
Annual financial charges | |
Unit price
(in Reais) | | |
September 30,
2022 | | |
December 31,
2021 | |
| First
Issue of Promissory Notes – 3rd series | |
non-preemptive right | |
| 50 | | |
| 1 | | |
7/4/2019 | |
7/4/2022 | |
CDI + 0.72% per year | |
| - | | |
| - | | |
| 57 | |
| First
Issue of Promissory Notes – 4th series | |
non-preemptive right | |
| 250 | | |
| 5 | | |
7/4/2019 | |
7/4/2023 | |
CDI + 0.72% per year | |
| 61,403,751 | | |
| 307 | | |
| 281 | |
| First
Issue of Promissory Notes – 5th series | |
non-preemptive right | |
| 200 | | |
| 4 | | |
7/4/2019 | |
7/4/2024 | |
CDI + 0.72% per year | |
| 61,403,751 | | |
| 246 | | |
| 225 | |
| First
Issue of Promissory Notes – 6th series | |
non-preemptive right | |
| 200 | | |
| 4 | | |
7/4/2019 | |
7/4/2025 | |
CDI + 0.72% per year | |
| 61,403,751 | | |
| 246 | | |
| 225 | |
| Second
Issue of Debentures – 1st series | |
non-preemptive right | |
| 940,000 | | |
| 940,000 | | |
6/1/2021 | |
5/20/2026 | |
CDI + 1.70% per year | |
| 1,054 | | |
| 990 | | |
| 951 | |
| Second
Issue of Debentures – 2nd series | |
non-preemptive right | |
| 660,000 | | |
| 660,000 | | |
6/1/2021 | |
5/22/2028 | |
CDI + 1.95% per year | |
| 1,055 | | |
| 697 | | |
| 668 | |
| Second
Issue of Promissory Notes – 1st series | |
non-preemptive right | |
| 1,250,000 | | |
| 940,000 | | |
8/27/2021 | |
8/27/2024 | |
CDI + 1.47% per year | |
| 1,506 | | |
| 1,415 | | |
| 1,285 | |
| Second
Issue of Promissory Notes – 2nd series | |
non-preemptive right | |
| 1,250,000 | | |
| 940,000 | | |
8/27/2021 | |
2/27/2025 | |
CDI + 1.53% per year | |
| 1,506 | | |
| 1,416 | | |
| 1,286 | |
| Third
Issue of Debentures – 1st series – CRI | |
non-preemptive right | |
| 982,526 | | |
| 982,526 | | |
10/15/2021 | |
10/16/2028 | |
IPCA + 5.15% per year | |
| 1,093 | | |
| 1,074 | | |
| 1,012 | |
| Third
Issue of Debentures – 2nd series – CRI | |
non-preemptive right | |
| 517,474 | | |
| 517,474 | | |
10/15/2021 | |
10/15/2031 | |
IPCA + 5.27% per year | |
| 1,094 | | |
| 566 | | |
| 533 | |
| Fourth
Issue of Debentures – single series | |
non-preemptive right | |
| 2,000,000 | | |
| 2,000,000 | | |
1/7/2022 | |
11/26/2027 | |
CDI + 1.75% per year | |
| 1,051 | | |
| 2,103 | | |
| - | |
| First
Issue of Commercial Paper Notes – single series | |
non-preemptive right | |
| 750,000 | | |
| 750,000 | | |
2/10/2022 | |
2/9/2025 | |
CDI + 1.70% per year | |
| 1,021 | | |
| 766 | | |
| - | |
| Fifth
Issue of Debentures – single series - CRI | |
non-preemptive right | |
| 250,000 | | |
| 250,000 | | |
4/5/2022 | |
3/28/2025 | |
CDI + 0.75% per year | |
| 1,000 | | |
| 250 | | |
| - | |
| Sixth
Issue of Debentures – 1st series - CRI | |
non-preemptive right | |
| 72,962 | | |
| 72,962 | | |
9/28/2022 | |
9/13/2029 | |
CDI + 0.60% per year | |
| 1,001 | | |
| 73 | | |
| - | |
| Sixth
Issue of Debentures – 2nd series - CRI | |
non-preemptive right | |
| 55,245 | | |
| 55,245 | | |
9/28/2022 | |
9/11/2026 | |
CDI + 0.70% per year | |
| 1,001 | | |
| 55 | | |
| - | |
| Sixth
Issue of Debentures – 3rd series - CRI | |
non-preemptive right | |
| 471,793 | | |
| 471,793 | | |
9/28/2022 | |
9/13/2027 | |
IPCA + 6x’.70% per year | |
| 1,000 | | |
| 472 | | |
| - | |
| Borrowing
Cost | |
| |
| | | |
| | | |
| |
| |
| |
| | | |
| (102 | ) | |
| (77 | ) |
| | |
| |
| | | |
| | | |
| |
| |
| |
| | | |
| 10,574 | | |
| 6,446 | |
| Current
liabilities | |
| |
| | | |
| | | |
| |
| |
| |
| | | |
| 510 | | |
| 180 | |
| Non-current
liabilities | |
| |
| | | |
| | | |
| |
| |
| |
| | | |
| 10.064 | | |
| 6,266 | |
The Company issues debentures to strengthen
its working capital, maintain its cash strategy, lengthen its debt and investment profile. The debentures issued are non-convertible into
shares, do not have renegotiation clauses and do not have guarantee.
| 14.8 | Borrowings in foreign currencies |
As of September 30, 2022, the Company has
borrowings in foreign currency (US dollar) to strengthen its working capital, maintain its cash strategy and lengthen its debt and investment
profile. The Company has signed a promissory note
for a borrowing agreement with Scotiabank in the amount of USD50 million, which can be executed after maturity and non-payment of the
borrowing. The Company uses swap operations for 100%
of its borrowings denominated in US dollars, fixed interest rates and IPCA, exchanging these liabilities for Real pegged to the CDI (floating)
interest rates. The annual average rate of the CDI on September 30, 2022 was 10.90% (4.40% at December 31, 2021). In connection with the debentures and promissory
notes issued and part of borrowing operations in foreign currency, the Company is required to maintain certain financial ratios. These
ratios are calculated quarterly based on the Company’s condensed interim financial statements prepared in accordance with accounting
practices adopted in Brazil, as follows: (i) consolidated net debt/equity less than or equal to 3.00 not exceeding equity; and (ii) consolidated
net debt/EBITDA ratio less than or equal to 3.0. As of September 30, 2022, the Company was
compliant with these ratios.
|