Cover
Cover | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2022 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-31317 |
Entity Registrant Name | COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP |
Entity Central Index Key | 0001170858 |
Entity Incorporation, State or Country Code | D5 |
Entity Address, Address Line One | Rua Costa Carvalho, 300 |
Entity Address, City or Town | São Paulo |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 05429-900 |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | SBS |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 683,509,869 |
ICFR Auditor Attestation Flag | true |
Auditor Name | Grant Thornton Auditores Independentes Ltda. |
Auditor Location | São Paulo, Brazil |
Auditor Firm ID | 5270 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | Rua Costa Carvalho, 300 |
Entity Address, City or Town | São Paulo |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 05429-900 |
City Area Code | +55 11 |
Local Phone Number | 3388 8247 |
Contact Personnel Name | Catia Cristina Teixeira Pereira |
Contact Personnel Email Address | catiapereira@sabesp.com.br |
Statements of Financial Positio
Statements of Financial Position - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current | ||
Cash and cash equivalents | R$ 1867485 | R$ 717929 |
Financial investments | 1,677,873 | 2,433,385 |
Trade receivables | 3,062,574 | 2,695,077 |
Accounts receivable from related parties | 205,793 | 173,657 |
Inventories | 124,247 | 113,506 |
Restricted cash | 37,474 | 28,467 |
Recoverable taxes | 242,906 | 276,104 |
Other assets | 66,312 | 64,873 |
Total current assets | 7,284,664 | 6,502,998 |
Noncurrent | ||
Trade receivables | 215,234 | 223,234 |
Accounts receivable from related parties | 950,950 | 644,895 |
Escrow deposits | 170,093 | 141,667 |
Water and Basic Sanitation National Agency – ANA | 9,193 | 20,666 |
Other assets | 146,362 | 161,369 |
Investments | 110,765 | 79,437 |
Investment properties | 46,726 | 46,126 |
Contract assets | 8,613,968 | 8,550,102 |
Intangible assets | 39,320,871 | 36,503,834 |
Property, plant and equipment | 338,939 | 291,157 |
Total noncurrent assets | 49,923,101 | 46,662,487 |
Total assets | 57,207,765 | 53,165,485 |
Liabilities and equity | ||
Trade payables and contractors | 430,946 | 236,763 |
Borrowings and financing | 2,245,960 | 1,830,617 |
Labor and social obligations | 498,504 | 426,616 |
Taxes and contributions | 293,461 | 257,130 |
Interest on capital | 741,725 | 548,006 |
Provisions | 924,038 | 809,821 |
Services payable | 723,242 | 469,027 |
Public-Private Partnership - PPP | 222,413 | 142,757 |
Program Contract Commitments | 100,188 | 77,652 |
Other liabilities | 476,865 | 294,538 |
Total current liabilities | 6,657,342 | 5,092,927 |
Borrowings and financing | 16,712,711 | 15,893,219 |
Deferred income tax and social contribution | 189,278 | 283,739 |
Deferred Cofins and PASEP | 159,723 | 159,456 |
Provisions | 686,746 | 638,672 |
Pension plan obligations | 2,150,191 | 2,321,662 |
Public-Private Partnership - PPP | 2,736,768 | 2,917,428 |
Program Contract Commitments | 12,197 | 44,995 |
Other liabilities | 569,276 | 881,528 |
Total non-current liabilities | 23,216,890 | 23,140,699 |
Total liabilities | 29,874,232 | 28,233,626 |
Equity | ||
Capital stock | 15,000,000 | 15,000,000 |
Earnings reserves | 12,155,890 | 9,885,485 |
Other comprehensive loss | 177,643 | 46,374 |
Total equity | 27,333,533 | 24,931,859 |
Total equity and liabilities | R$ 57207765 | R$ 53165485 |
Income Statements
Income Statements - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Net operating revenue | R$ 22055720 | R$ 19491061 | R$ 17797541 |
Operating costs | (14,350,903) | (12,800,042) | (11,179,667) |
Gross profit | 7,704,817 | 6,691,019 | 6,617,874 |
Selling expenses | (911,967) | (825,879) | (751,286) |
Allowance for doubtful accounts | (782,057) | (643,730) | (444,826) |
Administrative expenses | (1,398,507) | (1,124,069) | (1,051,181) |
Other operating income (expenses), net | 8,327 | (21,841) | 107,656 |
Equity results of investments in affiliaties | 24,551 | 22,079 | 14,136 |
Profit from operations before finance income (expenses) and income tax and social contribution | 4,645,164 | 4,097,579 | 4,492,373 |
Financial expenses | (1,956,266) | (1,448,295) | (1,324,759) |
Financial revenues | 1,091,531 | 472,408 | 336,731 |
Exchange result, net | 492,321 | 48,464 | (2,178,343) |
Financial result, net | (372,414) | (927,423) | (3,166,371) |
Profit before income tax and social contribution | 4,272,750 | 3,170,156 | 1,326,002 |
Income tax and social contribution | |||
Current | (1,230,234) | (961,556) | (460,721) |
Deferred | 78,751 | 97,269 | 108,037 |
Income tax and social contribution | (1,151,483) | (864,287) | (352,684) |
Profit for the year | R$ 3121267 | R$ 2305869 | R$ 973318 |
Earnings per share – basic and diluted (in reais) | R$ 4.57 | R$ 3.37 | R$ 1.42 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | |||
Profit for the year | R$ 3121267 | R$ 2305869 | R$ 973318 |
Other comprehensive income | 131,269 | 447,376 | 511,169 |
Items which will not be subsequently reclassified to the income statement: | |||
Actuarial gains and (losses) on defined benefit Plans, net of income tax | 131,269 | 447,376 | 511,152 |
Other | 17 | ||
Total comprehensive income for the year | R$ 3252536 | R$ 2753245 | R$ 1484487 |
Statements of Changes in Equity
Statements of Changes in Equity - BRL (R$) R$ in Thousands | Issued capital [member] | Statutory reserve [member] | Investment Reserve [Member] | Additional Dividend Proposed [Member] | Retained earnings [member] | Accumulated other comprehensive income [member] | Total [Member] |
Beginning balance, value at Dec. 31, 2019 | R$ 15000000 | R$ 1368406 | R$ 6098575 | R$ 80973 | R$ 912171 | R$ 21635783 | |
IfrsStatementLineItems [Line Items] | |||||||
Net income for the year | 973,318 | 973,318 | |||||
Actuarial gains (losses) | 511,169 | 511,169 | |||||
Total comprehensive income for the year | 973,318 | 511,169 | 1,484,487 | ||||
Legal Reserve | 48,666 | (48,666) | |||||
Interest on capital (R$1.08455 per share) | (231,163) | (231,163) | |||||
Complementary minimum dividends of 2021, approved (R$0.08139 per share) | (80,973) | (80,973) | |||||
Complementary minimum dividends (R$ 0.19145 per share) | 40,806 | (40,806) | |||||
Withholding income tax on interest on capital attributable as minimum mandatory dividends | (14,430) | (14,430) | |||||
Transfer to investments reserve | 652,683 | (652,683) | |||||
Ending balance, value at Dec. 31, 2020 | 15,000,000 | 1,417,072 | 6,751,258 | 26,376 | (401,002) | 22,793,704 | |
IfrsStatementLineItems [Line Items] | |||||||
Net income for the year | 2,305,869 | 2,305,869 | |||||
Actuarial gains (losses) | 447,376 | 447,376 | |||||
Total comprehensive income for the year | 2,305,869 | 447,376 | 2,753,245 | ||||
Legal Reserve | 115,293 | (115,293) | |||||
Interest on capital (R$1.08455 per share) | (547,645) | (547,645) | |||||
Complementary minimum dividends of 2021, approved (R$0.08139 per share) | (26,376) | (26,376) | |||||
Complementary minimum dividends (R$ 0.19145 per share) | 96,700 | (96,700) | |||||
Withholding income tax on interest on capital attributable as minimum mandatory dividends | (41,069) | (41,069) | |||||
Transfer to investments reserve | 1,546,231 | (1,546,231) | |||||
Ending balance, value at Dec. 31, 2021 | 15,000,000 | 1,532,365 | 8,297,489 | 55,631 | 46,374 | 24,931,859 | |
IfrsStatementLineItems [Line Items] | |||||||
Net income for the year | 3,121,267 | 3,121,267 | |||||
Actuarial gains (losses) | 131,269 | 131,269 | |||||
Total comprehensive income for the year | 3,121,267 | 131,269 | 3,252,536 | ||||
Legal Reserve | 156,063 | (156,063) | |||||
Interest on capital (R$1.08455 per share) | (741,301) | (741,301) | |||||
Complementary minimum dividends of 2021, approved (R$0.08139 per share) | (55,631) | (55,631) | |||||
Complementary minimum dividends (R$ 0.19145 per share) | 130,857 | (130,857) | |||||
Withholding income tax on interest on capital attributable as minimum mandatory dividends | (53,930) | (53,930) | |||||
Transfer to investments reserve | 2,093,046 | (2,093,046) | |||||
Ending balance, value at Dec. 31, 2022 | R$ 15000000 | R$ 1688428 | R$ 10390535 | R$ 76927 | R$ 177643 | R$ 27333533 |
Statements of Changes in Equi_2
Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity | |||
Interest on shareholder's equity | $ 1.08455 | $ 0.80122 | $ 0.33820 |
Additional proposed dividends, approved | 0.08139 | 0.03859 | 0.11847 |
Additional proposed dividends, per share | $ 0.19145 | $ 0.14148 | $ 0.05970 |
Statements of Cash Flows
Statements of Cash Flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flow from operating activities | |||
Profit before income tax and social contribution | R$ 4272750 | R$ 3170156 | R$ 1326002 |
Adjustments for: | |||
Depreciation and amortization | 2,450,849 | 2,253,322 | 2,037,112 |
Residual value of property, plant and equipment, intangible assets and investment properties written-off | 10,110 | 27,754 | 16,590 |
Bad debt expense | 782,057 | 643,730 | 444,826 |
Agreement signed with the municipality of Mauá | (280,774) | ||
Provisions and inflation adjustment of provisions | 630,689 | 380,624 | 444,090 |
Interest calculated on borrowings and financing payable | 1,091,592 | 647,980 | 559,931 |
Inflation adjustment and exchange (losses) gains on borrowings and financing | (301,716) | 177,269 | 2,267,179 |
Interest and inflation adjustments on liabilities | 22,225 | 37,202 | 20,931 |
Interest and inflation adjustments on assets | (400,057) | (171,173) | (46,946) |
Finance charges from customers | (328,486) | (349,491) | (344,513) |
Construction margin on intangible assets arising from concession agreements | (109,369) | (98,402) | (86,477) |
Provision for Consent Decree (TAC) and Knowledge Retention Program (PRC) | (1,238) | 3,195 | 1,684 |
Equity results of investments in affiliaties | (24,551) | (22,079) | (14,136) |
Interest and monetary restatement (PPP) | 489,197 | 464,398 | 424,639 |
Transfer to the São Paulo Municipal Government | 167,714 | 131,878 | 142,232 |
Pension plan obligations | 183,262 | 176,673 | 136,585 |
Other adjustments | 15,488 | 15,152 | 5,283 |
Total Adjustments | 8,950,516 | 7,488,188 | 7,054,238 |
Changes in assets | |||
Trade receivables | (489,885) | (742,260) | (213,084) |
Accounts receivable from related parties | (295,091) | 20,665 | 83,419 |
Inventories | (10,741) | (8,658) | (34,394) |
Recoverable taxes | 33,198 | (253,432) | (342,127) |
Escrow deposits | 5,348 | 43,865 | 35,630 |
Other assets | 18,264 | 31,386 | (36,264) |
Changes in liabilities | |||
Trade payables and contractors | (220,462) | (245,501) | (248,404) |
Services payable | 86,501 | (116,601) | (162,560) |
Accrued payroll and related taxes | 73,126 | 12,478 | (185,020) |
Taxes and contributions payable | 120,853 | 196,255 | 384,676 |
Deferred Cofins and Pasep | 267 | 10,012 | 5,751 |
Provisions | (468,398) | (184,433) | (227,596) |
Pension plan obligations | (239,174) | (215,937) | (123,014) |
Other liabilities | (722,549) | (68,260) | (13,306) |
Cash generated from operations | 6,841,773 | 5,967,767 | 5,977,945 |
Interest paid | (1,505,488) | (845,445) | (626,625) |
Income tax and social contribution paid | (1,368,686) | (1,208,569) | (373,112) |
Net cash generated from operating activities | 3,967,599 | 3,913,753 | 4,978,208 |
Cash flows from investing activities | |||
Acquisition of contract assets and intangible assets | (3,550,537) | (3,696,669) | (3,299,657) |
Restricted cash | (9,007) | 7,275 | (9,724) |
Financial investments | 755,512 | 1,076,468 | (3,411,146) |
Investment properties | (648) | ||
Investment increase/(decrease) | (5,734) | ||
Purchase of property, plant and equipment | (73,668) | (50,281) | (42,407) |
Net cash used in investing activities | (2,878,348) | (2,663,207) | (6,768,668) |
Borrowings and financing | |||
Proceeds from loans | 2,807,026 | 2,922,811 | 4,777,474 |
Payment of loans | (1,536,724) | (2,896,604) | (3,244,099) |
Payment of interest on capital | (603,541) | (254,218) | (890,095) |
Public-Private Partnership - PPP | (590,201) | (579,486) | (543,346) |
Program Contract Commitments | (16,255) | (121,521) | (166,283) |
Net cash generated by (used in) financing activities | 60,305 | (929,018) | (66,349) |
Increase / (decrease) in cash and cash equivalents | 1,149,556 | 321,528 | (1,856,809) |
Represented by: | |||
Cash and cash equivalents at the beginning of the year | 717,929 | 396,401 | 2,253,210 |
Cash and cash equivalents at the end of the year | 1,867,485 | 717,929 | 396,401 |
Increase / (decrease) in cash and cash equivalents | R$ 1149556 | R$ 321528 | R$ 1856809 |
Operations
Operations | 12 Months Ended |
Dec. 31, 2022 | |
Operations | |
Operations | 1 Operations Companhia de Saneamento Básico do Estado de São Paulo ("SABESP" or "Company") is a mixed-capital company headquartered in São Paulo, at Rua Costa Carvalho, 300, CEP 05429-900, controlled by the State of São Paulo. The Company is engaged in the provision of basic and environmental sanitation services in the State of São Paulo, as well as it supplies treated water and sewage services on a wholesale basis. In addition to providing basic sanitation services in the State of São Paulo, SABESP may performs these activities in other states and countries, and can operate in drainage, urban cleaning, solid waste handling and energy markets. SABESP aims to be a world reference in the provision of sanitation services, in a sustainable, competitive and innovative manner, with a focus on customers. As of December 31, 2022, the Company operated water and sewage services in 375 municipalities of the State of São Paulo, 351 have already signed contracts, pursuant to Law 11,445/2007. Most of these municipalities’ operations are based on 30-year concession, program and services contracts, except for the municipalities of Guarulhos, Mauá, Santo André, São Bernardo do Campo, São João da Boa Vista and Tejupá, which have a 40-year term. The table below shows a summary of the contractual situation of the municipalities served: The table below shows a summary of the contractual situation of the municipalities served December 31, 2022 December 31, 2021 Total municipalities that have already signed contracts 351 342 Balance – intangible and contract assets 45,292,307 42,260,091 Percentage of intangible and contract assets 94.49% 93.80% Revenue from sanitation services (excluding construction revenue) 17,767,561 15,490,808 Percentage of revenue from sanitation services (excluding construction revenue) 95.37% 95.01% Municipalities with expired contracts: 1 8 Balance – intangible and contract assets 11,519 214,329 Percentage of intangible and contract assets 0.02% 0.48% Revenue from sanitation services (excluding construction revenue) 15,236 41,194 Percentage of revenue from sanitation services (excluding construction revenue) 0.08% 0.25% Municipalities with concession agreements due by 2030: 23 25 Balance – intangible and contract assets 1,072,138 1,127,920 Percentage of intangible and contract assets 2.24% 2.50% Revenue from sanitation services (excluding construction revenue) 711,452 653,408 Percentage of revenue from sanitation services (excluding construction revenue) 3.82% 4.01% Municipality of São Paulo: Percentage of intangible and contract assets 43.33% 43.11% Percentage of revenue from sanitation services (excluding construction revenue) 45.14% 44.45% The Company's shares have been listed in the “Novo Mercado” (New Market) segment of B3 under the ticker symbol SBSP3 since April 2002 and on the New York Stock Exchange (NYSE) as American Depositary Receipts (“ADRs”) Level III, under the SBS code, since May 2002. Since 2008, the Company has been setting up partnerships with other companies, which resulted in the following companies: Sesamm, Águas de Andradina, Saneaqua Mairinque, Aquapolo Ambiental, Águas de Castilho, Attend Ambiental, Paulista Geradora de Energia, Cantareira SP Energia, FOXX URE-BA Ambiental and Infranext Soluções em Pavimentação. Although SABESP has no majority interest in the capital stock of these companies, the shareholders’ agreements provide for the power of veto and casting vote in certain issues jointly with associates, indicating the shared control in the management of investees, except for Saneaqua Mairinque, which, as of August 2020, no longer has a shared control. Economic instability worsened by COVID-19 Regarding the effects of COVID-19, the Company emphasizes the migration, in 2020, of the billed volume of the public, commercial, and industrial categories that have average tariffs higher than the tariff charged from the residential category. However, since 2021, the billed volume has been resuming for these categories with consequent recovery in the average tariff price. Expenses with allowance for doubtful accounts are still rising over the same period in 2021, due to the higher delinquency in 2022. New Legal Sanitation Framework On July 15, 2020, Federal Law 14,026/2020, known as New Legal Framework for Basic Sanitation, was sanctioned. The new law expands competition in the sector by extinguishing program contracts, encourages the region-wise provision of services to promote economies of scale, and provides for strengthening the service regulation. Additionally, the New Legal Framework imposes performance goals to reach 99% of the population served with drinking water and 90% with sewage collection and treatment by December 31, 2033, encouraging operators to increase efficiency. The new Law also granted the National Water Agency (ANA) with power to edit reference rules to regulate sanitation services, aiming to standardize the operation of the regulatory agencies and minimize regulatory uncertainties, thus creating a more stable and attractive environment for investments in the sector. On May 31, 2021, Federal Decree 10,710 was published, regulating article 10-B of Law 11,445/2007, establishing the methodology for proving the economic and financial capacity of public providers of drinking water supply and sewage services, to make it possible the compliance with the universalization goals by 2033. Said Decree determined economic and financial evaluation metrics on service providers to prove their ability to make investments within the intended deadlines and several conditions for current contracts to be considered regular. Any adjustments to them should be made by March 31, 2022, in line with paragraph 1 of article 11-B of the New Legal Framework. According to the aforementioned Decree, as of December 30, 2021, the Company presented a requirement to the São Paulo State Utility Services Regulatory Agency (ARSESP) containing documents that prove its capacity to maintain the provision of services in the operated area by meeting the goals of universal water and sewage collection and treatment by 2033, defined by the New Legal Framework, attested and certified by independent auditor and certifying body. As of March 28, 2022, ARSESP recognized the Company’s economic-financial capacity, under the applicable legislation. In this new context, the Company understands that it is important to highlight that i) it has 366 regular contracts that have already been adapted to the provisions of the New Legal Framework, which ensure 99.5% of revenue; ii) it has access to public capital and the private capital market, due to its sound reputation, favoring the maintenance and/or expansion of its operating base and compliance with the universalization of services within the deadline established by the new law; and iii) it has high governance level. Management expects that the funds raised with the gradual recovery of the economic activities, the improved water security from the works carried out, the generation of operational cash, and credit lines available for investments, will be sufficient to meet the Company’s commitments and not compromise the necessary investments. Approvals The financial statements were approved by Management on April 25, 2023. |
Basis of preparation and presen
Basis of preparation and presentation of the financial statements | 12 Months Ended |
Dec. 31, 2022 | |
Basis Of Preparation And Presentation Of Financial Statements | |
Basis of preparation and presentation of the financial statements | 2 Basis of preparation and presentation of the financial statements The financial statements of the Company have been prepared in accordance with the International Financial Reporting Standards – IFRS as issued by the International Accounting Standards Board – IASB. All material information related to the financial statements, and this information alone, is being disclosed and corresponds to the information used by the Company’s Management in its administration. The financial statements have been prepared under the historical cost except for certain financial instruments measured at fair value when required by the standards. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving a higher degree to judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are described in Note 6. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 3 Summary of Significant Accounting Policies The main accounting policies applied in the preparation of these financial statements are defined below and have been applied consistently in all years presented. 3.1 Cash and cash equivalents Cash and cash equivalents include cash in hand, bank deposits, overdraft accounts and other short-term highly liquid investments with maturities and intention of use by the Company’s Management in a period lower than three months. 3.2 Financial assets and liabilities Financial Asset - Classification The Company classified its financial assets according to the following categories: measured at amortized cost, measured at fair value through other comprehensive income and measured at fair value through profit or loss. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at inception. As of December 31, 2022 and 2021, the Company did not have financial assets classified as fair value through other comprehensive income and fair value through profit or loss. · Amortized cost This comprises financial assets that meet the following conditions: (i) it is held within the business model whose objective is to hold financial assets to collect contractual cash flows; and (ii) the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Presented as current assets, except for those with maturity of more than 12 months after the reporting date (these are classified as noncurrent assets). The Company's financial assets measured at amortized cost include cash and cash equivalents, financial investments, restricted cash, accounts receivable from related parties, accounts receivable from related parties, other receivables, receivables from the Water and Basic Sanitation National Agency – ANA. Financial assets measured at amortized cost are recorded at fair value and subsequently at amortized cost, under the effective interest rate method, except for trade receivables, which is initially measured at transaction price, as it contains no financing items, and is subsequently measured at amortized cost. Financial Liabilities - Classification The Company classifies its financial liabilities measured at amortized cost. Classification depends on the purpose to which the financial liabilities were assumed. This category comprises balances payable to contractors and suppliers, borrowings and financing, services payable, balances payable from public-private partnership (PPP), and program contract commitments. The effective interest rate method is adopted to calculate the amortized cost of a financial liability and allocate its interest expense under the respective period. The effective interest rate exactly deducts the estimated future cash flows (including fees, transaction costs and other issue costs) throughout the financial liability’s estimated life or, when appropriate, during a shorter period, for initial recognition of the net carrying amount. Impairment of financial assets · Trade receivables Due to the charactheristics of the Company’s accounts receivable such as (i) insignificant financial component, (ii) non-complex receivables portfolio, and (iii) low credit risk, the Company adopted the simplified approach of expected credit loss, which consists in recognizing the expected credit loss based on the total asset’s useful life. The methodology to calculate the allowance for doubtful accounts consisted of using an estimate calculated based on the average default observed in the last 36 months, per maturity range, in addition to estimating the recovery of credits overdue for more than 360 days, based on the track record of the last three years. For estimate purposes, it also considered the category of private and public customers, and segregated accounts receivable among the regular consumption accounts and agreements. The Company also concluded that the estimates of the macroeconomic indicators Gross Domestic Product (GDP), Unemployment Rate and the Extended Consumer Price Index (IPCA) were not impacted, given that it carried out correlation analyses of these indicators and its default history, which did not result in significant correlation between them. · Deposit transactions and financial investments measured at amortized cost The Company analyzes changes in the rates of investments in bank deposits certificates and information obtained from regulatory agencies about the financial institutions. The likelihood of delinquency over 12 months and during the terms of these investments was based on historical data provided by credit rating agencies for each credit level and analyzed in terms of sensitivity based on current returns. These deposits and financial investments are subject to an insignificant risk of change in value. 3.3 Operating income (a) Revenue from sanitation services Revenue from water supply and sanitation services are recognized as the water is consumed and services are provided. Revenues, including unbilled revenues, are recognized at the fair value of the consideration received or receivable for the rendering of those services. Revenue is shown net of value-added tax, rebates and discounts. Unbilled revenues represent incurred revenues in which the services were provided, but not yet billed until the end of the each period and are recorded as trade receivables based on monthly estimates of the completed services. Revenues are recognized based on IFRS 15 (Revenue from Contracts with Customers), which establishes a five-step model applicable over revenue from a contract with a customer. Revenues are recognized when the Company: i) it identifies the contracts with customers; ii) it identifies the different obligations in the contract; iii) it determines the transaction price; iv) it allocates the transaction price to the performance obligations in the contracts; and (v) it satisfies all performance obligations. Disputed amounts are recognized as revenue when collected. (b) Construction revenue Revenue from concession construction contracts is recognized in accordance with IFRS 15 (Revenue from Contracts with Customers) and IFRIC 12 (Service Concession Arrengements), as all performance obligations are satisfied over time. During the construction phase of the contract, an asset is classified as contract assets, as the Company estimates that the fair value of its consideration is equivalent to expected construction costs plus margin. The fee represents the additional margin related to the work performed by the Company in relation to such construction contracts and it is added to construction costs, resulting in the construction revenue. 3.4 Trade receivables and allowance for doubtful accounts Trade receivables are amounts due from customers for services performed in the ordinary course of business. These are classified as current assets, except when maturity exceeds 12 months after the end of the reporting period. In these cases, they are presented as noncurrent assets. The Company establishes an allowance for doubtful accounts for receivable balances at an amount that Management considers to be sufficient to cover eventual losses, as described in Note 3.2. 3.5 Inventories Inventories comprise supplies for consumption and maintenance of the water and sewage systems are stated at the lower between the average cost of acquisition or net realizable value, and are classified in current assets. 3.6 Investment properties Investment properties are recorded at the acquisition or construction cost, less accumulated depreciation, except for the land group, calculated by the straight-line method at rates that consider the estimated useful life of the assets. Expenditures related to repairs and maintenance are recorded in the income statement when incurred. The Company also maintains some assets for undetermined use in the future, i.e. it is not defined if the Company will use these assets in the operation or sell them in the short term during the ordinary course of business. 3.7 Contract asset The Contract Asset (works in progress) is the right to consideration in exchange for goods or services transferred to the customers. As determined by IFRS 15 - Revenue from contract with customer, assets related to the concession under construction, recorded under the scope of IFRIC 12 – Service Concession Arrengements, should be classified as contract asset during the construction period and transferred to the intangible assets only after the completion of the works. A Contract Asset is recognized at fair value, including the capitalization of labor, construction margin, interest, and other financial charges capitalized during the construction period of qualifying assets, where applicable, based on the weighted average rate of borrowings in effect on the capitalization date. A qualifying asset necessarily requires a substantial period, established by the Company as being higher than 12 months, to be ready for use, considering the completion period of the works, given that most of them take on average more than 12 months to be completed, which corresponds to one fiscal year of the Company. The infrastructure construction values are recognized as revenue, at fair value, provided that they generate future economic benefits. The accounting policy to recognize construction revenue is described in Note 3.3 (b). 3.8 Property, plant and equipment Property, plant and equipment comprise mainly administrative facilities not composing the assets subject to the concession agreements. Those assets are stated at acquisition or construction cost less depreciation and impairment losses, as applicable. Where applicable, interest, other finance charges, and inflationary effects resulting from financing effectively applied to construction in progress are recorded as the cost of the respective property, plant and equipment for the qualifying assets. A qualifying asset necessarily requires a substantial period, established by the Company as being higher than 12 months, to be ready for use, considering the completion period of the works, given that most of them take on average more than 12 months to be completed, which corresponds to one fiscal year of the Company. Subsequent costs included in the existing asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that the future economic benefit associated with the item will flow to the Company and the cost of the item can be reliably measured. Repairs and maintenance are charged to the income statement of the year, as incurred. The depreciation of property, plant, and equipment begins when such an item becomes available for use, in its location, and under the necessary condition, when this asset becomes operational. Depreciation is calculated using the straight-line method and the average rates are presented in Note 16 (a). Land is not depreciated. The useful lives of assets are revised and adjusted, where applicable, at the end of each year. Gain and losses on disposals are determined by the difference between the proceeds with the carrying amount and are recognized in other operating income (expenses) in the income statement. 3.9 Intangible assets Intangible assets are those arising from concession contracts, and the main costs are transferred from the Contract Asset, as described in Note 3.7. The intangible has its amortization initiated when the intangible assets are available for use in the location and necessary condition when this asset becomes operational. The amortization reflects the period in which it is expected that the asset’s future economic benefits are consumed by the Company, which may be the final term of the concession or their useful life. The amortization of the intangible assets ends when the asset is fully consumed or it is disposed of, whatever occurs first. Donations in assets, received from third parties and governmental entities, to allow the Company to render water supply and sewage services are recorded in the Company’s financial statements at zero cost, since these assets are controlled by the concession grantor. Financial resources received as donations for the construction of infrastructure are recorded under “Other operating income”. (a) Concession agreements/program contracts/service contracts The Company operates concession agreements including the rendering of basic sanitation, environmental, water supply and sewage services signed with the granting authorities. The infrastructure used by SABESP subject to service concession arrangements is considered to be controlled by the concession grantor when: (i) The granting authority controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them, and at what price; and (ii) The granting authority controls the infrastructure, i.e., retains the right to take back the infrastructure at the end of the concession. The rights over the infrastructure operated under the concession agreements are accounted for as an intangible asset as the Company has the right to charge for the use of the infrastructure assets, and the users (consumers) must pay SABESP for the services. Intangible assets related to the concessions, are amortized on a straight-line basis over the period of the contract, or the useful life of the underlying asset, whichever occurs first. The details referring to amortization of intangible assets are described in Note 15 (c). (b) Software license of use Software licensing is capitalized based on the acquisition costs and other implementation costs. Amortizations are recorded according to the useful life and the expenses associated with maintaining them are recognized in profit or loss when incurred. 3.10 Impairment of non-financial assets Property, plant and equipment, intangible assets and other noncurrent assets with defined useful lives, are yearly reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company does not have assets with indefinite useful life and assessed that there are no indications of impairment losses, mainly supported by Law 14,026/2020, which ensures that basic sanitation public utilities will have assured its economic and financial sustainability to public sanitation services through tariffs or indemnity. 3.11 Trade payables and contractors Trade payables and contractors are obligations to pay for goods or services acquired from suppliers in the ordinary course of business and are initially measured at fair value, which generally correspond to the bill and subsequently at amortized cost, being classified as current liabilities, except when the maturity exceeds 12 months after the reporting date and are, otherwise, being presented as noncurrent liabilities. 3.12 Borrowings and financing Borrowings and financing are initially recognized at fair value, upon receipt of funds, net of transaction costs. Subsequently, borrowings and financing are stated at amortized cost, as presented in Note 17. Borrowings and financing are classified as current liabilities unless the Company has an unconditional right to defer the settlement of the liability for at least 12 months after the end of the reporting date. The bonds issued by the Company are not convertible into shares and are recorded similarly to borrowings. 3.13 Borrowing costs Borrowing costs consist of interest rates and other charges incurred by the Company and arise from borrowing and financing agreements, including exchange variation. Costs attributable to the acquisition, construction, or production of an asset, which, necessarily, requires a substantial time to be ready for use or sale are capitalized as part of the cost of these assets. Other borrowing costs are recognized as expenses in the period they are incurred. The capitalization occurs during the construction period of the asset, considering the weighted average rate of borrowings effective on the capitalization date. The Company analyses foreign currency-denominated borrowings or financing as if they were contracted in local currency, restricting the capitalization of interest and/or exchange variation by the amount that would be capitalized if they were contracted in the domestic market in similar lines of credit and loans. 3.14 Salaries, payroll charges and contributions Salaries, vacations, Christmas bonuses, profit sharing and additional payments negotiated in collective labor agreements plus related charges and contributions are recorded on the accrual basis. The profit sharing plan for its employees is based on operational and financial targets, and a provision is created when it is contractually required or when there is a past practice that created a constructive obligation, and is recorded on the accrual basis period as operating cost, selling and administrative expenses or capitalized in assets. 3.15 Provisions, legal obligations, escrow deposits and contingent assets Provisions related to claims are recognized when: i) the Company has a present (legal or constructive) obligation resulting from a past event; ii) it is probable that an outflow of resources that comprise economic benefits will be required to settle the obligation; and iii) the amount can be reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow of resources will be required to settle an obligation is determined by considering the nature of the obligations as a whole. Provisions are measured at the present value of the disbursements expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as financial expense. For financial statement presentation purposes, the provision is stated net of escrow deposits, based on the legal offset right. Escrow deposits not linked to the related obligations are recorded in noncurrent assets and adjusted by the indexes defined by the competent authorities. The Company does not recognize contingent liabilities in the financial statements since it either does not expect outflows to be required or the amount of the obligation cannot be reliably measured. Contingent assets are not recognized in the statements of financial position. 3.16 Environmental costs Costs related to ongoing environmental programs are expensed in the income statement, when there is a taxable event. Ongoing programs are designed to minimize the environmental impact of the operations and to manage the environmental risks inherent to the Company's activities. 3.17 Income taxes – current and deferred Income taxes expenses comprise current and deferred income tax and social contributions. Current taxes The provision for income tax and social contribution is calculated based on the taxable profit for the year and the rates effective at the end of the year. The income tax was accrued at rate of 15%, plus 10% surtax on taxable income exceeding R$ 240 9 Deferred taxes Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction that at the time of the transaction affects neither accounting nor taxable profit nor loss, except for business combinations. Deferred income tax is determined using tax rates (and laws) effective at the end of the reporting period and are expected to be applied when the related income tax and social contribution are realized. Deferred income tax and social contribution assets are recognized only to the extent that it is probable that future taxable profit will be available for which temporary differences can be utilized and tax losses can be carryforward. Deferred taxes assets and liabilities are offset when there is a legally enforceable right of offsetting current tax assets against current tax liabilities and when deferred income tax assets and liabilities are related to income taxes levied by same tax authority over the tax entity. 3.18 Taxes on revenues Revenues from sanitation services are recognized on accrual basis for PASEP (Programa de Formação do Patrimônio do Servidor Público) and Cofins (Contribuição para o Financiamento da Seguridade Social), calculated at the rates of 1.65 7.60 0.65 4.00 The taxes related to PASEP and Cofins incident on amounts invoiced to public entities are due when invoices are received. These taxes are calculated by the non-cumulativeness regime and presented net, as deductions from gross revenues. The lines over “other operating income” and “financial revenues” are presented net of such taxes on the income statement. In addition, revenues from sanitation services are also subject to the Regulatory, Control and Oversight Fee (TRCF - Taxa de Regulação, Controle e Fiscalização), whose taxable event is the performance of regulatory, control and monitoring activities by ARSESP, calculated at 0.50 3.19 Pension plan obligations (a) Defined benefit The Company makes contributions to defined benefit plans on a contractual basis and sponsored thereby. The regular contributions comprise the net administrative expenses and are recognized in the income statement for the period. Liabilities from defined benefit pension plan obligations correspond to the present value of the defined benefit obligation at the end of the reporting period, less the fair value of the plan’s assets. The defined benefit obligation (G1) and (G0) are calculated on an annual basis by independent actuaries, using the projected unit credit method. The estimated future cash outflow is discounted to its present value, using the interest rates of Government bonds with maturities that approximate the maturity of the related liability. Referring to actuarial gains and losses deriving from adjustments based on the experience and changes in actuarial assumptions are directly recorded under equity, as other comprehensive income (OCI), so that the plan's net assets or liabilities are recognized in the statement of financial position in order to reflect the full amount of plan’s deficit or surplus. In an event where a curtailment relates to only some of the employees covered by a plan, or where only part of an obligation is settled, the gain or loss includes a proportionate share of the past service cost and actuarial gains and losses. The proportionate share is determined on the basis of the present value of the obligations before and after the curtailment or settlement. (b) Defined contribution The Company makes contributions to defined contribution plans on a contractual basis and sponsored thereby, a supplementary private pension entity that provides post-employment benefits to its employees, in which the Company makes fixed and equal contributions to employees, within the limits set by regulation. In this model, the benefits paid are directly related to the amount contributed, with no deficits to be covered by the Company. 3.20 Financial revenues and expenses Financial revenue is primarily comprised of interest and inflation adjustments resulting from financial investments, escrow deposits and negotiations with customer to pay by installments, calculated using the effective interest rate method. Financial expenses are primarily comprised of interest, inflation adjustments and exchange rate changes on borrowings and financing, provisions, public-private partnership and program contract commitments. These financial income and expenses are calculated using the effective interest rate method. Inflation adjustments and exchange gains and losses derive from the collection or payment to third parties, as contractually required by law or court decision, and recognized on an accrual basis pro rata temporis. Inflation adjustments included in the agreements are not considered embedded derivatives, since they are deemed as inflation adjustment rates for the Company’s economic scenario. 3.21 Leases Leases are recognized at the present value of the contractual obligations, presented in assets as Right of Use (Note 15 (f)) and in liabilities as Leases (Note 17 (b)), except for short-term contracts (12 months or less) and/or low value (below US$ 5 thousand – R$ 26 thousand), which are recorded in the income statement recognized as an expense when incurred. 3.22 Other current and noncurrent assets and liabilities Other assets are stated at acquisition cost, net of any impairment loss, where applicable. The amounts recognized as other liabilities are stated at known or estimated amounts, including, where applicable, related charges and inflation adjustments. 3.23 Dividends and interest on capital The Company uses the tax benefits of distributing dividends as interest on capital, as permitted by Brazilian Law and based on the Bylaws. This distribution of dividend is accounted for in accordance with Brazilian Law 9,249/95 for tax deductibility purposes, limited to the daily pro rata fluctuation of the Long-term Interest Rate (TJLP). The benefit attributed to the shareholders is recognized in the current liability against Equity, based on its by-laws. Dividends and interest on capital over the minimum established in the by-laws are recognized when approved by the shareholders in the shareholders’ meeting, except for taxes incurring in the distribution of interest on capital. The tax benefit of the interest on capital is accrued in the income statement of the year, under the same recognition basis of expenses with interest on capital. 3.24 Present value adjustment Current and noncurrent financial assets and liabilities arising from long- or short-term transactions are adjusted to present value based on market discount rates as of the transaction date, when the effects are significant. 3.25 Segment information Operating segments are determined in a manner consistent with the internal reporting to the Company’s chief operating decision maker (“CODM”), which, in the case of SABESP, is comprised of the Board of Directors and Board of Executive Officers, to make strategic decisions, allocate resources and evaluate performance. The Company determined that it has one operating segment which is sanitation services. The accounting policies used to determine segment information are the same as those used to prepare the Company’s financial statements. The measurement of the result per segment is the profit from operations before other net operating expenses and equity accounting, which excludes construction costs and revenue. The CODM analyzes asset and liabilitity information on a consolidated basis. Consequently, the Company does not disclose segment information on assets and liabilities. Substantially all noncurrent assets and revenue generated from customers are located in the São Paulo State. Consequently, financial information is not disclosed by geographic area. 3.26 Translation into foreign currency (a) Functional and reporting currency Items included in the financial statements are measured using the currency of the primary economic environment in which the company operates ("the functional currency"). The financial statements are presented in Brazilian reais (R$), which is also the Company's functional currency. All financial information has been stated in reais and rounded to the next thousand, except where otherwise indicated. (b) Foreign currency translation Foreign currency-denominated transactions are translated into Brazilian reais using the exchange rates prevailing at the transaction dates. Statement of financial position accounts are translated by the exchange rate prevailing at reporting date. Exchange gains and losses resulting from the settlement of these transactions and the translation of foreign currency-denominated cash assets and liabilities are recognized in the income statement, except for borrowings and financing referring to property, plant and equipment or intangible assets in progress, where exchange losses are recognized as corresponding entry to the asset while construction is in progress, as described in Note 3.13. |
Changes in accounting practices
Changes in accounting practices and disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Changes In Accounting Practices And Disclosures | |
Changes in accounting practices and disclosures | 4 Changes in accounting practices and disclosures 4.1 New standards, amendments and interpretations effective for periods beginning on or after January 1, 2022 The amendments to IFRS 3 – Reference to the Conceptual Framework; IAS 16 – Proceeds Before Intended Use; IAS 37 – Onerous Contracts – Cost of Fulfilling a Contract and annual improvements to the IFRSs: Cycle 2018-2020: IFRS 1 – First-Time Adoption of International Financial Reporting Standards, IFRS 9 – Financial Instruments, IFRS 16 – Leases and IAS 41 – Biological Asset and Agriculture, did not impact the disclosures or amounts recognized in the annual financial statements. 4.2 New standards, amendments and interpretations to existing standards that are not yet effective The Company did not early adopt these standards and is assessing the impacts of the new and revised IFRS below on the disclosures or amounts recognized in the financial statements: Recognized financial statements Standard Description Impact IFRS 17 – Insurance Contracts 2 Establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. The Company does not expect effects from adopting this standard. Amendments to IFRS 10 - Consolidated Statements and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 3 Clarify situations that involve the sale or contribution of assets between an investor and its associate or joint venture. The Company is assessing the impacts and effects of the amendments; however, it does not expect any effects from the amendments. Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current 2 These amendments to IAS 1 only affect the presentation of liabilities as current or non-current in the statement of financial position and not the amount or the time of recognition of any asset, liability, income or expense, or the information disclosed on such items. In addition, clarify that the classification of liabilities as current or non-current is based on the rights existing at the balance sheet date, specify that the classification is not affected by the expectations on whether an entity will exercise its right to postpone the settlement of the liability and introduce the definition of 'settlement' to clarify that settlement refers to the transfer to a counterparty, of cash, equity instruments, other assets or services. The Company does not expect any impacts from this standard. Amendments to IAS 1 – Presentation of Financial Statements 1 3 The amendments modify the requirements contained in IAS 1 regarding the disclosure of accounting policies. The amendments replace all the examples of the term “significant accounting policies” with “information of material accounting policies”. Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, could reasonably influence decisions that the main users make based on the financial statements. The supporting paragraphs have also been amended to clarify that accounting policy information related to transactions, other events, or conditions that are not material is, therefore, irrelevant and does not need to be disclosed. The Company does not expect any impacts from these changes. Amendments to IAS 8 - Accounting Policies, Changes in Estimates, and Errors—Definition of Accounting Estimates 1 The amendment supersede the definition of changes in the accounting estimates with the definition of accounting estimates. According to the new definition, accounting estimates are “monetary amounts in the financial statements subject to measure uncertainty”. The Company does not expect effects from these amendments. Amendments to IAS 12 – Income Taxes – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (“single transaction”) 1 The amendments introduce an additional exception to the exemption of first-time recognition. According to the amendments, an entity does not apply the exemption of first-time recognition for transactions resulting in equal taxable and deductible temporary differences. The Company does not expect effects from these amendments. 1 Effective for annual periods beginning on or after January 1, 2023. 2 The effective date of the amendments has not yet been defined by IASB. 3 The amendments to IFRS Practice Statement 2 do not have an effective date or transition requirements. There are no other standards and interpretations not yet adopted that may, in the opinion of Management, have a significant impact on the result for the year of equity disclosed by the Company in its financial statements. |
Risk Management
Risk Management | 12 Months Ended |
Dec. 31, 2022 | |
Risk Management | |
Risk Management | 5 Risk Management 5.1 Financial Risk Management Financial risk factors The Company's activities are affected by Brazilian economic scenario, making it exposed to market risk (exchange rate and interest rate), credit risk and liquidity risk. Financial risk management is focused on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company has not utilized derivative instruments in any of the reported periods. (a) Market risk Foreign currency risk Foreign exchange exposure implies market risks associated with currency fluctuations, since the Company has foreign currency-denominated liabilities, arising from long-term funding, in development institutions, at more attractive interest rates, in U.S. dollars and Yen. The management of currency exposure considers several current and projected economic factors, besides market conditions. This risk arises from the possibility that the Company may incur in losses due to exchange rate fluctuations that would impact liability balances of foreign currency-denominated borrowings and financing raised in the market and related financial expenses. The Company does not maintain hedge or swap contracts or any derivative financial instrument to hedge against this risk. Part of the financial debt, totaling R$ 2,809,441 3,321,489 Schedule of exposure to exchange risk December 31, 2022 December 31, 2021 Foreign currency (in thousands) R$ Foreign currency (in thousands) R$ Borrowings and financing – US$ 191,022 996,695 163,538 912,624 Borrowings and financing – Yen 45,369,189 1,795,259 49,324,813 2,390,774 Interest and charges from borrowings and financing – US$ 6,985 4,121 Interest and charges from borrowings and financing – Yen 10,502 13,970 Total exposure 2,809,441 3,321,489 Borrowing cost – US$ (31,037 ) (22,486 ) Borrowing cost – Yen (2,646 ) (2,850 ) Total foreign-currency denominated borrowings (Note 17) 2,775,758 3,296,153 The 15.8 The table below shows the exchange rate variation for the period December 31, 2022 December 31, 2021 Variation US$ R$ 5.2177 R$ 5.5805 -6.5 % Iene R$ 0.03957 R$ 0.04847 -18.4 % In 2022 there was a decrease related to the Exchange variation in borrowings and financing, in the amount of R$ 488,614 38,324 280,944 332,149 The probable scenario below presents the effect on the income statements for the next 12 months considering the projection of the U.S. dollar and the Yen. The Company understands that the scenario presented is reasonable, given the instability of the Brazilian real against the U.S. dollar and the Yen. The Company understands that the scenario presented is reasonable, given the instability of the Brazilian real against the U.S. dollar and the Yen Scenario I (Probable) (*) Net currency exposure as of December 31, 2022 in US$ - Liabilities 191,022 US$ rate as of December 31, 2022 5.2177 Exchange rate estimated according to the scenario 5.2700 Difference between the rates ( 0.0523 ) Effect on the net financial result R$ - gain/(loss) (9,990 ) Net currency exposure as of December 31, 2022 in Yen - Liabilities 45,369,189 Yen rate as of December 31, 2022 0.03957 Exchange rate estimated according to the scenario 0.04203 Difference between the rates ( 0.00246 ) Effect on the net financial result R$ - gain/(loss) (111,608 ) Total effect on the net financial result in R$ - gain/(loss) (121,598 ) (*) For the probable scenario in U.S. dollars and Yen, the exchange rates estimated for December 31, 2023, were used, according to the Focus-BACEN and B3's Benchmark Rate report, of December 31, 2022, respectively Interest rate risk This risk arises from the possibility that the Company could incur losses due to fluctuations in interest rates, increasing the financial expenses related to borrowings and financing. The Company has not entered into any derivative contract to hedge against this risk; however continually monitors market interest rates, in order to evaluate the possible need to replace its debt. The table below provides the borrowings and financing subject to variable interest rates: The table below provides the Company's borrowings and financing subject to variable interest rates December 31, 2022 December 31, 2021 CDI (i) 9,251,150 7,612,299 TR (ii) 1,635,587 1,638,079 IPCA (iii) 3,073,435 3,019,459 TJLP (iv) 1,433,029 1,478,740 SOFR (v) 996,697 912,626 Interest and charges 424,856 243,696 Total 16,814,754 14,904,899 (i) CDI – (Certificado de Depósito Interbancário), an interbank deposit certificate (ii) TR – Interest Benchmark Rate (iii) IPCA – (Índice Nacional de Preços ao Consumidor Amplo), a consumer price index (iv) TJLP – (Taxa de Juros a Longo Prazo), a long-term interest rate index (v) SOFR – Secured Overnight Financing Rate Another risk to which the Company is exposed, is the mismatch of inflation adjustment indices of its debts with those of its service revenues. Tariff adjustments of services provided by the Company do not necessarily follow the increases in the inflation indexes to adjust borrowings, financing and interest rates affecting indebtedness As of December 31, 2022, if interest rates on borrowings and financing had been 1 percentage point higher or lower with all other variables held constant, the effects on profit before taxes would have been R$ 168,148 149,049 (b) Credit risk Credit risk arises from cash and cash equivalents, financial investments, as well as credit exposures to wholesale basis and retail customers, including outstanding accounts receivable, restricted cash and accounts receivable from related parties. Credit risk exposure to customers is mitigated by sales to a dispersed base. The maximum exposures to credit risk as of December 31, 2022 is the carrying amount of instruments classified as cash and cash equivalents, financial investments, restricted cash, trade receivables and accounts receivable from related parties in the balance sheet date. See additional information in Notes 7, 8, 9, 10 and 11. Regarding the financial assets held with financial institutions, the credit quality was assessed by reference to external credit ratings (if available) or to historical information about the bank’s default rates. For the credit quality of the banks, such as deposits and financial investments, the Company considers the lower rating published by three main international rating agencies (Fitch, Moody's and S&P), according to internal policy of market risk management: Schedule of internal policy of market risk management Banks Fitch Moody's Standard Poor's Banco do Brasil S/A AA(bra) AAA.br - Banco Santander Brasil S/A - AAA.br brAAA Brazilian Federal Savings Bank AA(bra) AAA.br brAAA Banco Bradesco S/A AAA(bra) AAA.br brAAA Itaú Unibanco Holding S/A AAA(bra) AAA.br - Banco BV - AA.br brAAA Banco BTG Pactual S/A AA(bra) AAA.br brAAA The table below shows the rating assessment released by the Fitch agency, for deposit transactions and financial investments in local currency: The table below shows the rating assessment released by the Fitch agency, for deposit transactions and financial investments in local currency December 31, 2022 December 31, 2021 Cash and cash equivalents and financial investments AA(bra) 2,237,629 1,905,810 AAA(bra) 1,011,685 970,474 Other (*) 296,044 275,030 3,545,358 3,151,314 (*) As of December 31, 2022, this category includes R$ 289,908 262,465 (c) Liquidity risk Liquidity is primarily reliant upon cash provided by operating activities and borrowings and financing obtained in the local and international capital markets, as well as the payment of debts. The liquidity risk management considers the assessment of its liquidity requirements to ensure it has sufficient cash to meet its operating and capital expenditures needs, as well as the payment of debts. The funds held by the Company are invested in interest-bearing current accounts, time deposits and securities, selecting instruments with appropriate maturity or liquidity sufficient to provide margin as determined by projections mentioned above. The table below shows the financial liabilities of the Company, by relevant maturities, including the installments of principal and future interest to be paid according to the agreement. Future interest was calculated based on the contractual clauses for all agreements. For agreements with floating interest rate, the interest rates used correspond to the base dates above. For agreements with floating interest rate, the interest rates used correspond to the base dates above. 2022 2023 2024 2025 2026 2027 onwards Total As of December 31, 2022 Liabilities Borrowings and financing 3,640,245 3,740,510 3,790,915 3,503,169 3,821,448 13,422,829 31,919,116 Trade payables and contractors 430,946 — — — — — 430,946 Services payable 723,242 — — — — — 723,242 Public-Private Partnership – PPP 517,681 423,568 386,767 386,767 386,767 3,733,287 5,834,837 Program Contract Commitments 100,022 1,174 1,174 1,174 1,174 12,352 117,070 Total 5,412,136 4,165,252 4,178,856 3,891,110 4,209,389 17,168,468 39,025,211 Cross default The Company has borrowings and financing agreements including cross default clauses, e.g., the early maturity of any debt, may imply the early maturity of these agreements. The indicators are continuously monitored in order to avoid the execution of these clauses and the more restrictive ones are showed in Note 17 (c). (d) Sensitivity analysis on interest rate risk The table below shows the sensitivity analysis of the financial instruments, prepared in accordance with IFRS 7, in order to evidence the balances of main financial assets and liabilities, calculated at a rate projected for the twelve-month period after December 31, 2022, or until the final settlement of each contract, whichever occurs first, considering a likely scenario. The purpose of the sensitivity analysis is to measure the impact of changes in the market over the financial instruments, considering constant all other variables. In the time of settlement the amounts can be different from those presented, due to the estimates used in the measurement. Schedule of estimates used in the measurement December 31, 2022 Indicators Exposure Scenario I (Probable) Assets CDI 1,689,876 13.4200 Financial income 226,781 Liabilities CDI (9,251,150) 13.4200 Interest to be incurred (1,241,504) CDI net exposure (7,561,274) (1,014,723) Liabilities TR (1,635,587) 0.0205 Expenses to be incurred (335) IPCA (3,073,435) 5.3128 Expenses to be incurred (163,285) TJLP (1,433,029) 7.2000 Interest to be incurred (103,178) SOFR (***) (996,697) 0.0491 Interest to be incurred (489) Total expenses to be incurred, net (1,282,010) (*) Source: Focus-BACEN Report of December 31, 2022 (**) Source: B3 of December 31, 2022 (***) Source: Bloomberg 5.2 Capital management The Company’s objectives when managing capital are ensure its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. Capital is monitored based on the leverage ratio, which corresponds to net debt divided by total capital (shareholders and providers of capital). Net debt corresponds to total borrowings and financing less cash and cash equivalents and financial investments. Total capital is calculated as total equity as shown in the statement of the financial position plus net debt. Total capital is calculated as total equity as shown in the statement of the financial position plus net debt December 31, 2022 December 31, 2021 Total borrowings and financing (Note 17) 18,958,671 17,723,836 (-) Cash and cash equivalents (Note 7) (1,867,485 ) (717,929 ) (-) Financial investments (Note 8) (1,677,873 ) (2,433,385 ) Net debt 15,413,313 14,572,522 Total equity 27,333,533 24,931,859 Total capital (shareholders + providers of capital) 42,746,846 39,504,381 Leverage ratio 36 % 37 % As of December 31, 2022, the leverage ratio decreased to 36 37 5.3 Fair value estimates The Company considers that balances from trade receivables (current) and trade payables and contractors by carrying amount, less impairment approximate their fair values, considering the short maturity. Long-term trade receivables also approximate their fair values, as they will be adjusted by inflation and/or will bear contractual interest rates over time. 5.4 Financial instruments The Company did not have financial assets classified as fair value through other comprehensive income and fair value through profit or loss. The Company’s financial instruments included in the amortized cost category comprise cash and cash equivalents, restricted cash, trade receivables, balances with related parties, other receivables, and balances receivable from the Water and Basic Sanitation National Agency – ANA, trade payables and contractors, borrowings and financing, services payable, balances payable deriving from the Public Private Partnership-PPP and program contract commitments, which are non-derivative financial assets and liabilities with fixed or determinable payments, not quoted in an active market, except for cash equivalents and financial investments. The estimated fair values of the financial instruments are as follows: Financial assets The estimated fair values of the financial instruments are as follows December 31, 2022 December 31, 2021 Carrying amount Fair value Carrying amount Fair value Cash and cash equivalents 1,867,485 1,867,485 717,929 717,929 Financial investments 1,677,873 1,677,873 2,433,385 2,433,385 Restricted cash 37,474 37,474 28,467 28,467 Trade receivables 3,277,808 3,277,808 2,918,311 2,918,311 Water and Basic Sanitation National Agency – ANA 9,193 9,193 20,666 20,666 Other assets 212,674 212,674 226,242 226,242 Additionally, SABESP has financial instrument assets receivables from related parties, in the amount of R$ 1,156,743 818,552 1,060,040 741,910 Financial liabilities Financial liabilities December 31, 2022 December 31, 2021 Carrying amount Fair value Carrying amount Fair value Borrowings and financing 18,958,671 19,260,133 17,723,836 17,947,954 Trade payables and contractors 430,946 430,946 236,763 236,763 Services payable 723,242 723,242 469,027 469,027 Program contract commitments 112,385 112,385 122,647 122,647 Public-Private Partnership - PPP 2,959,181 2,959,181 3,060,185 3,060,185 To obtain fair value of borrowings and financing, the following criteria have been adopted: (i) Agreements with CEF (Brazilian Federal Savings Bank) were projected until their final maturities, at the average interest rate plus TR x DI and the average contractual term, were adjusted to present value by a funding rate specific for the Company in similar contracts, plus TR x DI, on the end of the reporting period. TR x DI rates were obtained with B3. (ii) The debentures were projected up to the final maturity date according to contractual rates (IPCA, DI, TJLP or TR), and adjusted to present value considering the future interest rate published by ANBIMA in the secondary market, or by equivalent market rates, or the Company’s shares traded in the Brazilian market. (iii) Financing – BNDES corresponds to instruments valued at their carrying amount restated until the maturity date, and are indexed by the long-term interest rate (TJLP) . These financings have specific characteristics and conditions defined in the financing agreements with BNDES, between independent parties, and reflect the conditions for these types of financing. Brazil does not have a consolidated market of long-term debts with the same characteristics of BNDES financing; thus, the offering of credit to the entities in general, with such long-term characteristics, is usually restricted to BNDES. (iv) Other financings in local currency are considered by carrying the amount restated until the maturity date, adjusted to present value at future market interest rates. The future rates used were obtained on the website of B3. (v) Agreements with IDB and IBRD were projected until final maturity in origin currency, using the contracted interest rates plus SOFR’s future rate, obtained with Bloomberg, adjusted to present value using the exchange coupon curve obtained with B3, plus future LFT, disclosed by ANBIMA in the secondary market. All the amounts obtained were translated into Brazilian reais at the exchange rate of December 31, 2022. (vi) Agreements with JICA were projected until final maturity in origin currency, using the contracted interest rates, translated to the U.S. dollar and adjusted to present value using the exchange coupon curve obtained with B3, plus future LFT, disclosed by ANBIMA in the secondary market. The amounts obtained were translated into Brazilian reais at the exchange rate of December 31, 2022. (vii) Lease and finance leases based on IFRS 16 correspond to instruments valued at their carrying amount restated until the maturity date, and are indexed by a fixed contractual rate. Thus, the Company discloses the amount recorded as of December 31, 2022 as market value. Financial instruments referring to financial investments and borrowings and financing are classified as Level 2 in the fair value hierarchy. Considering the nature of other financial instruments, assets and liabilities, the balances recognized in the statement of financial position approximate the fair values, except for borrowings and financing, considering the maturities close to the end of the reporting date, comparison of contractual interest rates with market rates in similar operations at the end of the reporting period, their nature and maturity terms. |
Key accounting estimates and ju
Key accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2022 | |
Key Accounting Estimates And Judgments | |
Key accounting estimates and judgments | 6 Key accounting estimates and judgments The preparation of the financial statements requires management to disclose certain judgments (except for those involving estimates) that have a significant impact on the amounts recognized based on experience and other factors deemed as relevant, which affect the values of assets and liabilities and which may present results that may differ from the actual results. The Company establishes estimates and assumptions regarding the future, which are reviewed on a timely basis. Such accounting estimates, by definition, may differ from the actual results. The effects arising from the reviews of the accounting estimates are recognized in the period in which the estimates are reviewed. 6.1 Key accounting judgments in the application of accounting policies The Company assessed the main accounting policies that involve judgments, except those that involve estimates, and concluded that none of them have a significant effect. 6.2 Main sources of uncertainties in the estimates The areas that require a higher level of judgment and have greater complexity, as well as those in which assumptions and estimates that are significant for the financial statements are disclosed as follows: (a) Allowance for doubtful accounts The Company establishes an allowance for doubtful accounts in an amount that Management considers sufficient to cover expected losses (see Note 10 (c) ), based on an analysis of trade receivables, in accordance with the accounting policy stated in Notes 3.2 and 3.4. The methodology for determining such losses requires significant estimates, considering several factors, among which an evaluation of receipts historical, current economic trends, estimates of forecast write-offs, the aging of the accounts receivable portfolio and expectation of future losses. Although the Company believes that the assumptions used are reasonable, the actual results may be different. (b) Intangible assets arising from concession agreements and program contracts Intangible assets are those arising from concession contracts, and the main costs are transferred from the Contract Asset, as described in Note 3.7. Intangible assets under Concession Agreements, Service Agreements and Program Contracts, are amortized on a straight-line basis according to the lower of the period of the contract or the useful life of the asset or contract period. Additional information on the accounting for intangible assets arising from concession agreements is described in Notes 3.9 and 15. The recognition of the fair value of the intangible assets arising an exchange for an asset, involving concession agreements is subject to assumptions and estimates, and the use of different assumptions may affect the accounting records. Different assumptions and future changes in the useful life of these intangible assets may have significant impacts on the result of the operations. (c) Pension plan obligations – Pension Plans The Company sponsors a defined benefit plan and the defined contribution plan, as described in Notes 3.19 and 22. Defined pension plan obligations recognized in the statement of financial position consist of the present value of the defined benefit obligation on the reporting date less the fair value of the plan’s assets. The obligation of such benefit is calculated on an annual basis by independent actuaries, using the projected credit unit method. The present value of the defined benefit obligation is determined by discounting estimated future cash outflows, using interest rates compatible with market returns, which are denominated in the currency in which benefits will be paid and with maturity terms close to those of corresponding pension plan obligation . (d) Deferred income tax and social contribution The Company recognizes and settles taxes on income based on the results of operations calculated according to Brazilian Corporation Law, taking into consideration the provisions of the tax laws. Deferred tax assets and liabilities are recorded based on the differences between the accounting balances and the tax bases of the assets and liabilities. The Company regularly reviews the recoverability of deferred tax assets and recognizes a provision for impairment if it is probable that these assets will not be realized, based on the historic taxable income, on the projection of future taxable income and on the estimated period for reversing the temporary differences. These calculations require the use of estimates and assumptions. The use of different estimates and assumptions could result in a provision for impairment of all or a significant part of the deferred tax asset. Additional information on deferred taxes is described in Notes 3.17 and 19 . (e) Provisions The provisions for civil, labor, environmental and tax risks are created based on Notes 3.15 and 20. Judgments regarding future events may significantly differ from actual estimates and exceed the amounts provisioned. The provisions are revised and adjusted taking into consideration changes in the circumstances involved. (f) Unbilled revenue Unbilled revenue corresponds to services rendered for which readings have not been made yet. They are recognized based on monthly estimates calculated according to average billing. Additional information on revenue and accounts receivable are described in Notes 3.3 and 10. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 7 Cash and cash equivalents Cash and cash equivalents December 31, 2022 December 31, 2021 Cash and banks 139,844 146,853 Cash equivalents 1,727,641 571,076 Total 1,867,485 717,929 Cash and cash equivalents include cash, bank deposits and high-liquidity short-term financial investments, mainly represented by repurchase agreements (accruing CDI interest rates) and CDBs, whose original maturities or intention of realization are lower than three months, which are convertible into a cash amount and subject to an insignificant risk of change in value. The average yield of cash equivalents corresponded to 95.69 96.00 |
Financial investments
Financial investments | 12 Months Ended |
Dec. 31, 2022 | |
Financial Investments | |
Financial investments | 8 Financial investments The Company has financial investments in CDB, with daily liquidity, which it does not intend to use in the next three months, as shown below: The Company has financial investments in CDB, with daily liquidity December 31, 2022 December 31, 2021 Banco BV 289,909 262,465 Banco Itaú Unibanco S/A 403,732 366,906 Banco Bradesco S/A 578,752 524,791 Banco BTG Pactual S/A 404,363 367,361 Banco do Brasil S/A 1,117 911,862 1,677,873 2,433,385 The average yield of financial investments corresponds to 102.90 101.57 |
Restricted cash
Restricted cash | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Cash | |
Restricted cash | 9 Restricted cash Schedule of restricted cash December 31, 2022 December 31, 2021 Agreement with the São Paulo municipal government (i) 30,231 21,464 Brazilian Federal Savings Bank – escrow deposits 433 740 Other 6,810 6,263 37,474 28,467 (i) Refers to the amount deducted from the transfer 7.5% of the revenue earned in the municipality to the Municipal Fund for Environmental Sanitation and Infrastructure, corresponding to eventual amounts unpaid by direct management bodies, foundations and government agencies, as established in the agreement entered into with the municipal government of São Paulo. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade Receivables | |
Trade receivables | 10 Trade receivables (a) Financial position balances Schedule of financial position December 31, 2022 December 31, 2021 Private sector: General (i) and special customers (ii) 2,287,782 2,042,023 Agreements (iii) 416,550 514,616 2,704,332 2,556,639 Government entities: Municipal 609,731 586,810 Federal 10,644 7,869 Agreements (iii) 372,943 278,844 993,318 873,523 Wholesale customers – Municipal governments: (iv) Mogi das Cruzes 4,048 3,580 São Caetano do Sul 45,367 24,464 Total wholesale customers – Municipal governments 49,415 28,044 Unbilled supply 959,260 740,193 Subtotal 4,706,325 4,198,399 Allowance for doubtful accounts (1,428,517) (1,280,088) Total 3,277,808 2,918,311 Current 3,062,574 2,695,077 Noncurrent 215,234 223,234 Total 3,277,808 2,918,311 (i) General customers - residential and small and mid-sized companies; (ii) Special customers - large consumers, commercial, industries, condominiums and special billing customers (fixed demand agreements, industrial waste, wells, among others); (iii) Agreements - installment payments of past-due receivables, plus inflation adjustment and interest, according to the agreements; (iv) Wholesale basis customers - municipal governments - This balance refers to invoices issued as a result of services provided to municipalities, which are responsible for distributing to, billing and charging final customers. (b) The aging of trade receivables is as follows Schedule of aging of trade receivables December 31, 2022 December 31, 2021 Current 2,244,754 1,896,535 Past-due: Up to 30 days 489,709 502,164 From 31 to 60 days 248,128 267,723 From 61 to 90 days 165,306 182,977 From 91 to 120 days 150,941 155,018 From 121 to 180 days 281,530 258,718 From 181 to 360 days 58,702 95,751 Over 360 days 1,067,255 839,513 Total past-due 2,461,571 2,301,864 Total 4,706,325 4,198,399 (c) Allowance for doubtful accounts Schedule of allowance for doubtful accounts Changes in assets December 31, 2022 December 31, 2021 December 31, 2020 Balance at beginning of the year 1,280,088 1,157,619 1,042,015 Losses 209,360 182,547 176,776 Recoveries (60,931 ) (60,078 ) (61,172 ) Balance at the end of the year 1,428,517 1,280,088 1,157,619 Reconciliation of estimated/historical losses of income December 31, 2022 December 31, 2021 December 31, 2020 Write-offs (636,366 ) (508,055 ) (329,512 ) (Losses)/reversal with state entities - related parties 2,738 (13,206 ) 290 (Losses) with the private sector / government entities (209,360 ) (182,547 ) (176,776 ) Recoveries 60,931 60,078 61,172 Amount recorded expense (Note 29) (782,057 ) (643,730 ) (444,826 ) The Company does not have customers representing 10% or more of its total revenues. As of December 31, 2022, the Company has judicial bonds issued in its favor in the inflation adjusted amount of R$ 2,807,318 , which are not recognized in the Financial Statements because of the difficulty to obtain a reasonable estimate to measure such assets, due to the uncertainties related to the beginning and the end of the payments. Judicial bonds are recognized upon the beginning of their receipt or when they are traded. Schedule of Judicial bonds Debtor December 31, 2022 Municpality of São Paulo 2,656,113 Municpality of Cotia 103,729 Municpality of Cachoeira Paulista 13,672 Others 33,804 TOTAL 2,807,318 |
Related-Party Balances and Tran
Related-Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related-party Balances And Transactions | |
Related-Party Balances and Transactions | 11 Related-Party Balances and Transactions (a) São Paulo State (i) Accounts receivable, interest on capital payable, revenue and expenses Schedule of loan agreement through credit facility December 31, 2022 December 31, 2021 Accounts receivable Current: Sanitation services (ii) 144,937 127,614 Allowance for losses (49,595 ) (52,333 ) Reimbursement for retirement and pension benefits paid (G0): - monthly flow (payments) (iii) and (iv) 13,376 11,930 - GESP Agreement – 2015 (vi) 97,075 86,446 Total current 205,793 173,657 Noncurrent: Agreement for the installment payment of sanitation services 1,361 1,361 Reimbursement of additional retirement and pension benefits paid (G0): - GESP Agreement – 2015 (vi) 949,589 643,534 Total noncurrent 950,950 644,895 Total receivables 1,156,743 818,552 Assets: Sanitation services 96,703 76,642 Reimbursement of additional retirement and pension benefits (G0) 1,060,040 741,910 Total 1,156,743 818,552 Liabilities: Interest on capital payable 372,550 275,240 Schedule of loan agreement through credit facility 2022 2021 2020 Revenue from sanitation services 661,955 522,608 501,756 Payments received from related parties (632,501 ) (439,349 ) (520,881 ) Payment received from reimbursement referring to Law 4,819/58 (186,690 ) (179,787 ) (173,874 ) (ii) Sanitation services The Company provides water supply and sewage services to the São Paulo State Government and other companies related to it in accordance with usual market terms and conditions, as considered by management, except for the settlement of credits which can be made according to items (iii) of this Note. (iii) Reimbursement of additional retirement and pension benefits paid Refers to additional retirement and pension benefits provided for in State Law 4,819/58 ("Benefits") paid by the Company to former employees and pensioners, referred to as Go. Under the GESP Agreement, executed in 2001, the São Paulo State recognizes its liability from charges arising from the Benefits, provided that the payment criteria set forth by the State Department of Personnel (DDPE), based on legal guidance of the Legal Consultancy of the Department of Finance and of the State Attorney General's Office (PGE). As explained on item (iv), during the assessment of the debt due from State of São Paulo to the Company there were certain divergences in the calculation and eligibility criteria of the benefits paid by the Company on behalf of GESP. See additional information about the G0 plan in Note 22 (ii). As a result of a court decision, the responsibility for making the payments returned to SABESP. (iv) Disputed amounts On November 17, 2008 the Company and the São Paulo State signed the third amendment to the GESP Agreement, when the reimbursements called disputed and undisputed were quantified. The amendment established the efforts to calculate the so-called Disputed Reimbursement of the Benefits. Under the fourth clause of the amendment, the Disputed Reimbursement represents the difference between the Undisputable Reimbursement and the amount actually paid by the Company as pension benefits and pensioners set out in Law 4,819/58, for which, the Company understands, the State of São Paulo is originally liable, but paid by SABESP under a court order. By entering into the third amendment, the State's Legal Representative (PGE) agreed to reassess the differences that gave rise to the Disputed Amount of benefits set out in Law 4,819/58. At the time, the expectation was based on the willingness of the PGE to reanalyze the issue and the implied right of the Company to the reimbursement, including based on opinions from outside legal advisors. However, the latest opinions issued by the PGE and received on September 4 and 22, 2009 and January 4, 2010, refute the reimbursement of previously defined as Disputed Amount. The third amendment also provides for the regularization of the monthly flow of benefits. While SABESP is responsible for the monthly payments, the São Paulo State shall reimburse the Company based on the criteria identical to those applied in the calculation of the Undisputed Amount. Should there be no preventive court decision, the State will directly assume the monthly payment flow of the portion deemed as undisputed. Even though the negotiations with the State are still in progress, it is not possible to assure that the Company will recover the disputed receivables without dispute. Continuing the actions that aim to recover the credit that Management understands to be owed by the São Paulo State, related to the divergences in the reimbursement of the additional retirement and pension benefits paid by the Company, SABESP: (i) on March 24, 2010, addressed a message to the Controlling Shareholder by sending a letter resolved by the Executive Board proposing that the matter be discussed at B3’s Arbitration Chamber; (ii) in June 2010, sent to the Treasury Department a proposal of an agreement to settle said pending matters. The proposal was not accepted; (iii) on November 9, 2010, filed a lawsuit against the São Paulo State seeking full reimbursement of the amounts paid as benefits provided for in Law 4,819/1958 to settle the Disputed Amount under discussion between the Company and the São Paulo State. Despite the lawsuit, the Company will insist on reaching an agreement during the course of the lawsuit, as it believes that a reasonable agreement is better for the Company and its shareholders than waiting for the end of the lawsuit. As of December 31, 2022 and 2021, the disputed amounts between SABESP and State of São Paulo, corresponding to additional retirement and pension benefits paid (Law 4,819/1958), totaled R$ 1,482,140 1,375,137 (v) Actuarial Liability The Company recognized an actuarial liability corresponding to additional retirement and pension benefits paid to employees, retired employees, and pensioners of the G0 Plan. As of December 31, 2022 and 2021, the amounts corresponding to such actuarial liability were R$ 2,002,075 2,192,062 (vi) GESP Agreement - 2015 On March 18, 2015, the Company, the São Paulo State, and DAEE, through the Department of Sanitation and Water Resources, entered into an Agreement totaling R$ 1,012,310 696,283 316,027 The principal will be paid in 180 installments, as follows: ● The first 24 installments were settled upon the transfer of 2,221,000 87,174 ● The amount of R$ 609,109 On July 22, 2022, the decision regarding the lawsuit that challenged the possibility of transferring the reservoirs was published in the State Official Gazette, preventing the transfer of the reservoirs to SABESP. Accordingly, as provided for in the agreement, the São Paulo State will pay SABESP, in addition to the principal, inflation adjustment of R$ 316,027 In July 2022, R$ 325,561 As of December 31, 2022, the balance receivable was R$ 97,075 86,446 949,589 643,534 (b) Use of Reservoirs – EMAE Empresa Metropolitana de Águas e Energia S.A. - EMAE planned to receive for the credit and obtain financial compensation for alleged past and future losses in electricity generation arising from water collection, and compensation for costs already incurred and to be incurred with the operation, maintenance and inspection of the Guarapiranga and Billings reservoirs used by SABESP in its operations. On October 28, 2016, the Company entered into an agreement based on a Private Transaction Agreement and Other Adjustments to settle the disputes involving the two companies and the SABESP will continue using the reservoirs. As of December 31, 2022, the Company recorded R$ 8,456 95,033 7,956 88,264 8,963 (c) Agreements with reduced tariffs for State Entities that join the Rational Water Use Program (PURA) The Company has signed agreements with government entities related to the São Paulo State Government that benefit them with a reduction of 25% in the tariff of water supply and sewage services when they are not in default. These agreements provide for the implementation of the rational water use program, which takes into consideration the reduction in water consumption. (d) Guarantees The São Paulo State provides guarantees for some borrowings and financing of the Company and does not charge any fee with respect to such guarantees, see Note 17. (e) Personnel assignment agreement among entities related to the São Paulo State Government The Company has personnel assignment agreements with entities related to the São Paulo State Government, whose expenses are fully charged. In 2022, the expenses related to personnel assigned by SABESP to other state government entities amounted to R$ 800 734 2,108 In 2022 and 2021, there were not expenses related to personnel assigned by other entities to SABESP (In 2020, the expenses related to personnel assigned by other entities to SABESP were R$ 13 (f) Non-operating assets As of December 31, 2022 and 2021, the Company had an amount of R$ 3,613 (g) SABESPREV The Company sponsors a defined benefit plan (G1 Plan), which is operated and administered by SABESPREV. The net actuarial liability recognized as of December 31, 2022 amounted to R$ 148,116 129,600 (h) Compensation of Management Key Personnel and Fiscal Council The compensation of the Executive Officers, members of the Audit Committee and Boards of Directors and Fiscal Councils of the Companies controlled by the São Paulo State complies with the guidelines of the State Capital Defense Council (CODEC) and is defined at the Annual Shareholders’ Meeting, as per article 152 of Brazilian Corporation Law. CODEC defines that the proposal for global and individual compensation of the statutory bodies for publicly held companies listed in B3’s Novo Mercado segment, controlled by the State, must be prepared by the Board of Directors under the Company’s Bylaws, within the scope of the Institutional Compensation Policy and submitted for approval of the Annual Shareholders’ Meeting. In addition to the monthly compensation, the members of the Board of Directors, Fiscal Council and Executive Board receive annual reward equivalent to a monthly fee, calculated on a prorated basis in December of each year. The purpose of this reward is to define a compensation similar to the Christmas bonus paid to the Company’s registered employees, given that the relationship of Management with the Company has a statutory nature. Benefits paid to Executive Officers only - meal vouchers, food vouchers, healthcare, private pension, annual rest (with the characteristic of paid leave of thirty (30) calendar days, with additional payment corresponding to one third of the monthly fees for such rest), and FGTS. SABESP pays bonuses for purposes of compensation of its Executive Officers, in accordance with the guidelines of the São Paulo State, such as a motivation policy, provided that the Company actually calculates quarterly, semi-annual and annual profits, and distributes mandatory dividends to shareholders, even if in the form of interest on capital. Annual bonuses cannot exceed six times Management’s monthly compensation or 10 % of the interest on capital paid by the Company, prevailing the shortest amount. Expenses related to the compensation of the members of the Fiscal Council appointed by the controlling shareholder and Management members totaled R$ 6,175 6,369 Additional amounts of R$ 1,305 1,440 (i) Loan agreement through credit facility The Company holds interest in certain Special Purpose Entities (SPEs), not holding the majority interest but with cast vote and power of veto in some issues, with no ability to use such power of veto in a way to affect returns over investments. Therefore, these SPEs are considered for accounting purposes as joint arrangements. Aquapolo Ambiental The Company entered into a loan agreement through credit facility with the SPE Aquapolo Ambiental S/A to finance the operations of this company, until the borrowings and financing requested with financial institutions is granted. As of December 31, 2022, the balance of principal and interest of this agreement totaled R$ 12,953 11,884 11,021 The loan agreement originally matured on April 30, 2015 but was extended to October 30, 2015 and on November 25, 2015 a new amendment changed the payment schedule for three annual installments, the first of which maturing on December 30, 2021 and the last on December 30, 2023. Águas de Andradina The Company entered into a loan agreement through credit facility with the SPE Águas de Andradina S/A to finance the operations of this company. As of December 31, 2022, the balance of principal and interest of this agreement totaled R$ 242 2,814 This agreement was signed on August 17, 2021. The principal with the readjustment, accrued interest and any taxes must be paid full by August 31, 2025. (j) FEHIDRO In April 2021, the Company entered into three financing agreements within the scope of the State Water Resources Fund – FEHIDRO. The funds will be allocated to the execution of sanitary sewage works and services in the municipalities of São Paulo, Itapecerica da Serra and Vargem Grande Paulista. The total investment amount is R$ 10.8 million 8.7 million 2.1 million 3.00 As of December 31, 2022, the balance of these financing was R$ 5.1 million 4.7 million |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments Abstract | |
Investments | 12 Investments The Company holds interest in certain Special Purpose Entities (SPE). Although SABESP has no majority shares of its investees, the shareholders’ agreement provides for the power of veto in certain management issues, however, with no ability to use such power of veto in a way to affect the returns over the investments, indicating participating shared control (joint venture – IFRS 11). The Company holds interest recognized by the equity accounting in the following investees: (a) Sesamm As of August 15, 2008, Sesamm – Serviços de Saneamento de Mogi Mirim S/A was incorporated for a period of 30 years from the date the concession agreement with the municipality for the purpose of providing complementary services to the sewage diversion system and implementing and operating sewage treatment system in the municipality of Mogi Mirim, including the disposal of solid waste. Sesamm's capital as of December 31, 2022, totaled R$ 19,532 19,532,409 36 64 The operations initiated in June 2012. (b) Águas de Andradina As of September 15, 2010, the Company, Águas de Andradina S.A. was incorporated, with indefinite term, for the purpose of providing water supply and sewage services to the municipality of Andradina. As of December 31, 2022, the capital of Águas de Andradina totaled R$ 17,936 17,936,174 30 70 The Company pledges as guarantee 100% of its shares in Águas de Andradina as a counter guarantee for the issuance of Letters of Guarantee with BNDES. The operations initiated in October 2010. (c) Águas de Castilho As of October 29, 2010, the Company, Águas de Castilho, was incorporated for the purpose of providing water supply and sewage services to the municipality of Castilho. As of December 31, 2022, the company’s capital was R$ 2,785 2,785,225 30 70 The Company pledges as guarantee 100% of its shares in Águas de Castilho as a counter guarantee for the issuance of Letters of Guarantee with BNDES. The operations initiated in January 2011. (d) Attend Ambiental As of August 23, 2020, Attend Ambiental S/A was incorporated with the purpose of implementing and operating a pre-treatment station of non-domestic effluents and sludge transportation in the metropolitan region of São Paulo, as well as the development of other related activities and the creation of similar infrastructures in other locations in Brazil and abroad. As of December 31, 2022, the capital totaled R$ 23,494 37,677,245 45 55 The operations initiated in December 2014. (e) Aquapolo Ambiental S/A. As of October 8, 2009, the Company, Aquapolo Ambiental S.A., was incorporated for the purpose of producing, providing and trading reused water for Quattor Química S.A., Quattor Petroquímica S.A., Quattor Participações S.A. and other companies comprising the Petrochemical Complex of Capuava and the metropolitan region of São Paulo. As of December 31, 2022, the capital of Aquapolo totaled R$ 36,412 42,419,045 The Company pledges 100% of the interest held in Aquapolo Ambiental S/A as a guarantee for the borrowing obtained through a debenture issue. The operations initiated in October 2012. (f) Paulista Geradora de Energia As of April 13, 2015, the Company acquired shares from Empresa Paulista Geradora de Energia S/A - PGE, jointly with Servtec Investimentos e Participações Ltda ("Servtec) and Tecniplan Engenharia e Comércio Ltda ("Tecniplan"), which operational purpose is the implementation and commercial exploration of water potential in small hydroelectric power plants (PCHs), located at the Guaraú and Vertedouro Cascata Water Treatment Stations. As of December 31, 2022, the company’s share capital was R$ 13,756 8,679,040 25 37.5 37.5 As of December 31, 2022, operations had not initiated yet. (g) Cantareira SP Energia On October 28, 2022, Cantareira SP Energia S/A was created with the purpose of developing, producing, and selling photovoltaic energy; selling and purchasing energy; renting, loaning, and leasing own or third-party assets; operating and maintaining energy generation plants; and holding an interest in other companies. As of December 31, 2022, the company’s share capital was R$ 1,000, divided into 1,000,000 registered common shares with no par value, of which SABESP holds an interest of 49%, while Pacto SP Energia I Ltda. holds an interest of 51%. As of December 31, 2022, operations had not initiated yet. (h) FOXX URE-BA Ambiental S/A As of December 22, 2022, SABESP acquired shares from FOXX URE-BA Ambiental S/A, for R$ 40,000 for the acquisition of 20% of the company’s share capital, corresponding to R$ 13,852. The difference paid, of R$ 26,148, was recorded in intangible assets under “Right of use – Investments”. As of December 23, 2022, the Company contributed R$ 865. The business purpose of FOXX URE-BA is to provide services, under a concession regime, related to the treatment and final disposal of solid urban waste, including all waste from domestic and commercial collection, sweeping, pruning, cleaning of streets and other public highways, and the urban drainage system, the provision of these services and related activities to third parties with which it has executed contracts for such a purpose, including investments and works of the treatment unit, implemented and operated by the company, for the treatment and final disposal of waste, operation of revenue sources, carbon credits, and the byproduct resulting from the treatment process and final disposal of urban solid waste, as well as selling electricity. As of December 31, 2022, the company’s share capital was R$ 69,258, divided into 69,257,657 registered common shares with no par value, of which SABESP holds an interest of 20%, while FOXX Inova Ambiental S/A holds an interest of 80%. (i) Infranext Soluções em Pavimentação S/A On December 7, 2022, SPE Infranext Soluções e Pavimentação S/A was created to sell cold asphalt and related products, provide related services, make investments, and hold interest in other companies. As of December 31, 2022, the company’s share capital was R$ 7,050, divided into 7,050,000 registered common shares with no par value. The company’s total share capital will be R$ 12,000, divided into 12,000,000 registered, book-entry common shares, of which SABESP will hold an interest of 45% and DVS – Locação de Equipamentos Ltda. will hold an interest of 55%. The unpaid capital, totaling R$ 4,950, will be paid by SABESP in 2023. As of December 31, 2022, operations had not initiated yet. Below is a summary of the investees’ financial information and SABESP’s equity interest: Schedule of the investees financial statements and equity interest Company Equity Contribution Dividends distributed Profit (loss) for the year 2022 2021 2020 2022 2022 2022 2021 2020 Sesamm 59,371 58,421 51,514 — (13,875 ) 14,825 9,059 7,332 Águas de Andradina 30,777 29,591 29,576 — — 1,186 2,424 778 Águas de Castilho 10,787 9,384 8,533 — — 1,403 1,428 1,613 Saneaqua Mairinque¹ — — 4,013 — — — — (770 ) Attend Ambiental 29,729 23,493 11,409 — (1,941 ) 8,177 4,701 3,923 Aquapolo Ambiental 73,926 58,172 41,903 — (14,742 ) 30,496 25,269 19,131 Paulista Geradora de Energia (*) 10,486 6,153 6,692 5,077 — (744 ) (539 ) (452 ) Cantareira SP Energia 1,000 — — 1,000 — — — FOXX URE-BA Ambiental 69,258 — — 69,258 — — — Infranext Soluções em Pavimentação (**) 7,050 — — 7,050 — — — (*) SABESP contributed R$ 5,077, corresponding to 25% of the interest. As of December 31, 2022, Servitec and Tecniplan had an outstanding payable amount of R$ 15,233 related to the remaining interest of 75% in PGE. (**) Infranext’s share capital will be R$ 12,000. As of December 31, 2022, SABESP had an outstanding payable amount of R$ 4,950. (¹) The amounts presented for 2020 refer to July 31, 2020. Company Investments Contribution Dividends distributed OCI (***) Reclassification Equity in the earnings of subsidiaries Interest percentage 2022 2021 2022 2021 2020 2020 2022 2021 2020 2022 2021 2020 Sesamm 21,374 21,032 — (4,995 ) — — 5,337 3,261 2,640 36 % 36 % 36 % Águas de Andradina 9,233 8,877 — — — — 356 700 233 30 % 30 % 30 % Águas de Castilho 3,236 2,815 — — — — 421 433 485 30 % 30 % 30 % Saneaqua Mairinque² — — — — 17 (1,203 ) — — (248 ) 46 % 46 % 30 % Attend Ambiental 13,379 10,572 — (873 ) — — 3,680 5,438 1,765 45 % 45 % 45 % Aquapolo Ambiental 36,223 28,504 — (7,224 ) — — 14,943 12,382 9,374 49 % 49 % 49 % Paulista Geradora de Energia 6,429 1,538 5,077 — — — (186 ) (135 ) (113 ) 25 % 25 % 25 % Cantareira SP Energia 490 — 490 — — — — — — 49 % — — FOXX URE-BA Ambiental 13,852 — 13,852 — — — — — — 20 % — — Infranext Soluções em Pavimentação 450 — 450 — — — — — — 45 % — — Total 104,666 73,338 19,869 (13,092 ) 17 (1,203 ) 24,551 22,079 14,136 Other investments 6,099 6,099 Overall total 110,765 79,437 (***) Other Comprehensive Income ( ) On August 20, 2020, the investee Saneaqua Mairinque held an Extraordinary Shareholders' Meeting that approved a capital increase in the amount of R$ 21,944 17,178,988 5,734 |
Investment properties
Investment properties | 12 Months Ended |
Dec. 31, 2022 | |
Investment Properties | |
Investment properties | 13 Investment properties Schedule of investment properties December 31, 2021 Additions Depreciation December 31, 2022 Investment properties 46,126 648 (48 ) 46,726 December 31, 2020 Write-offs and disposals Depreciation December 31, 2021 Investment properties 46,274 (100 ) (48 ) 46,126 December 31, 2019 Transfers Depreciation December 31, 2020 Investment properties 47,562 (1,240 ) (48 ) 46,274 As of December 31, 2022 and 2021, the market value of these properties was approximately R$ 386,000 |
Contract assets
Contract assets | 12 Months Ended |
Dec. 31, 2022 | |
Contract assets [abstract] | |
Contract assets | 14 Contract assets Schedule of contract assets December 31, 2021 Additions (i) Transfers Transfers of works to intangible assets (ii) December 31, 2022 (iii) Total contract assets 8,550,102 5,240,528 2,702 (5,179,364 ) 8,613,968 (i) The largest additions of the period are located in the municipalities of São Paulo, São Bernardo do Campo and Praia Grande, in the amounts of R$ 2,267 million, R$ 181 million and R$ 134 million, respectively. (ii) The largest transfers of the period are located in the municipalities of São Paulo, Praia Grande and São Bernardo do Campo, in the amounts of R$ 2,640 million, R$ 619 million and R$ 324 million, respectively. (iii) The largest works are located in the municipalities of São Paulo, Franca and São Bernardo do Campo, in the amounts of R$ 2,830 million, R$ 324 million and R$ 262 million, respectively. As of December 31, 2022, contract assets include leases recognized before December 31, 2019 in accordance with IAS 17 amounting to R$ 276,893 276,893 December 31, 2020 Additions Transfers Transfers of works to intangible assets December 31, 2021 Total contract assets 7,969,164 4,759,789 2,412 (4,181,263 ) 8,550,102 December 31, 2019 Additions Transfers Transfers of works to intangible assets December 31, 2020 Total contract assets 7,617,714 3,984,158 55,706 (3,688,414 ) 7,969,164 (a) Capitalization of interest and other finance charges In 2022, the Company capitalized interest and inflation adjustment, including related foreign currency exchange effects in the contract asset, totaling R$ 622,803 300,792 238,330 (b) Construction margin The Company is primarily responsible for the construction and installation of the concession infrastructure related to the concession, using own efforts or hiring outsourcing services, receiving the risks and benefits. Accordingly, the Company recognizes revenue from construction service corresponding to the cost of construction increased by gross margin. Generally, the constructions related to the concessions are performed by third parties, in such case, the margin of the Company is lower, normally, to cover eventual administration costs, and the responsibility of the primary risk. In 2022 and 2021 the margin was 2.3%. Construction margin for 2022, 2021 and 2020 were R$ 109,369 98,402 86,477 (c) Expropriations As a result of the construction of priority projects related to water and sewage systems, the Company was required to expropriate third-parties' properties, and the owners of these properties will be compensated either amicably or through courts. The costs of such expropriations are recorded in contract assets during construction. In 2022 and 2021, the total referring to expropriations was R$ 62,599 67,714 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets | |
Intangible assets | 15 Intangible assets (a) Statement of financial position details Statement of financial position details December 31, 2022 December 31, 2021 Cost Accumulated amortization Net Cost Accumulated amortization Net Intangible right arising from: Concession agreements – equity value 722,730 (223,404 ) 499,326 696,728 (205,671 ) 491,057 Concession agreements – economic value 1,585,271 (933,232 ) 652,039 1,497,968 (816,527 ) 681,441 Program contracts 26,875,408 (8,537,949 ) 18,337,459 24,804,170 (7,652,149 ) 17,152,021 Program contracts – commitments 1,709,757 (444,765 ) 1,264,992 1,709,757 (391,800 ) 1,317,957 Services contracts – São Paulo 25,584,703 (7,714,252 ) 17,870,451 22,834,803 (6,676,032 ) 16,158,771 Software license of use 1,249,881 (654,477 ) 595,404 1,133,833 (535,099 ) 598,734 Right of use – other assets 170,921 (95,869 ) 75,052 173,715 (69,862 ) 103,853 Right of use - investments 26,148 — 26,148 — — — Total 57,924,819 (18,603,948 ) 39,320,871 52,850,974 (16,347,140 ) 36,503,834 (b) Changes The obligations assumed by the Company as of December 31, 2021 and 2020 are shown in the table below December 31, 2021 Addition Transfer of contract assets Transfers Write-offs and disposals Amortization December 31, 2022 Intangible right arising from: Concession agreements – equity value (*) 491,057 — 27,166 (144 ) (115 ) (18,638 ) 499,326 Concession agreements – economic value 681,441 13 48,428 33,576 (9 ) (111,410 ) 652,039 Program contracts (*) 17,152,021 6,635 2,132,675 2,944 (2,800 ) (954,016 ) 18,337,459 Program contracts – commitments 1,317,957 — — — — (52,965 ) 1,264,992 Services contracts – São Paulo 16,158,771 208 2,855,284 (41,133 ) (6,063 ) (1,096,616 ) 17,870,451 Software license of use 598,734 214 115,811 6 — (119,361 ) 595,404 Right of use – Other assets 103,853 42,182 — — (67 ) (70,916 ) 75,052 Right of use – Investments — 26,148 — — — — 26,148 Total 36,503,834 75,400 5,179,364 (4,751 ) (9,054 ) (2,423,922 ) 39,320,871 (*) As of December 31, 2022, intangible assets include leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 222,572 54,356 168,216 245,681 65,012 180,669 December 31, 2020 Addition Transfer of contract assets Transfers Write-offs and disposals Amortization December 31, 2021 Intangible right arising from: Concession agreements – equity value (*) 483,775 — 24,656 467 (148 ) (17,693 ) 491,057 Concession agreements – economic value 734,665 — 52,275 (14 ) (242 ) (105,243 ) 681,441 Program contracts (*) 16,360,307 17,690 1,640,733 13,744 (8,840 ) (871,613 ) 17,152,021 Program contracts – commitments 1,370,923 — — — — (52,966 ) 1,317,957 Services contracts – São Paulo 14,872,604 14,950 2,307,851 (13,827 ) (13,745 ) (1,009,062 ) 16,158,771 Software license of use 540,625 — 155,748 — — (97,639 ) 598,734 Right of use – Other assets 42,676 140,321 — — (4,103 ) (75,041 ) 103,853 Total 34,405,575 172,961 4,181,263 370 (27,078 ) (2,229,257 ) 36,503,834 (*) As of December 31, 2021, intangible assets include leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 245,681 65,012 180,669 269,561 76,454 193,107 December 31, 2019 Addition Contract renewal Transfer of contract assets Transfers Write-offs and disposals Amortization December 31, 2020 Intangible right arising from: Concession agreements – equity value (*) 1,494,853 1 (1,031,830 ) 47,154 1,440 (858 ) (26,985 ) 483,775 Concession agreements – economic value 712,852 — — 113,320 (1,403 ) (42 ) (90,062 ) 734,665 Program contracts (*) 13,819,700 303,472 1,031,830 2,075,268 (51,570 ) (5,423 ) (812,970 ) 16,360,307 Program contracts – commitments 1,364,875 58,323 — — — — (52,275 ) 1,370,923 Services contracts – São Paulo 14,390,763 20,940 — 1,382,656 (23,645 ) (9,990 ) (888,120 ) 14,872,604 Software license of use 471,706 — — 70,016 78,169 — (79,266 ) 540,625 Right of use – Other assets 70,698 28,549 — — — — (56,571 ) 42,676 Total 32,325,447 411,285 — 3,688,414 2,991 (16,313 ) (2,006,249 ) 34,405,575 (*) As of December 31, 2020, intangible assets include leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 269,561 76,454 193,107 292,824 87,266 205,558 As of June 30, 2020, a contract was signed for the provision of treatment services and final disposal of solid waste and collection of garbage tax in the Municipality of Diadema for 40 years. In order to reach the best operationalization format, treatment services and final disposal of solid waste are in the study phase and, based on contractual provision, are subject to a partnership between SABESP and a private party, which will occur by means of a public call. (c) Intangible arising from concession agreements The Company operates public utility service concession agreements for water supply and sewage services mostly based on agreements that set out rights and obligations relative to the exploration of assets related to the public utility service (See Note 3.9 (a)). The agreements provide for the return of the assets to the granting authority at the end of the concession period. As of December 31, 2022 and 2021, the Company operated in 375 372 The services provided by the Company are billed at a price regulated and controlled by São Paulo State Sanitation and Energy Regulatory Agency (ARSESP). Intangible rights arising from concession agreements include: (i) Concession agreements – equity value These refer to municipalities assumed until 2006, except for the municipalities assumed by economic value through assets valuation report prepared by independent experts. The amortization of assets is calculated according to the straight-line method, which considers the assets useful life. (ii) Concession agreements – economic value From 1999 through 2006, the negotiations for new concessions were conducted on the basis of the economic and financial result of the transaction, determined in a valuation report issued by independent appraisers. The amount determined in the related contract, after the transaction is closed with the municipal authorities, realized through the subscription of the Company's shares or in cash, is recorded as "concession agreements" and amortized over the period of the related concession (usually 30 years). As of December 31, 2022 and 2021 there were no amounts pending related to these payments to the municipalities. Intangible assets are amortized on a straight-line basis over the period of the concession agreements or for the useful lives of the underlying assets, whichever is shorter. (iii) Program contracts These refer to the renewal of contracts previously referred to as concession agreements whose purpose is to provide sanitation services. The amortization of the assets acquired until the dates of signatures of the program contracts is calculated according to the straight-line method, which considers the assets’ useful lives. Assets acquired or built after the signature dates of program contracts are amortized during the contracted period (mostly, 30 years) or during the useful lives of underlying assets, whichever is shorter. (iv) Program contracts - Commitments After the enactment of the regulatory framework in 2007, renewals of concessions started to be made through of program contracts. In some of these program contracts, the Company undertook the commitment to financially participate in social and environmental actions. The assets built within the program contracts are recorded as intangible assets and are amortized by the straight-line method in accordance with the duration of the program contract (mostly, 30 years). As of December 31, 2022 and 2021, the amounts not yet disbursed were recorded under “program contract commitments”, in current liabilities, totaling R$ 100,188 77,652 12,197 44,995 (v) Services agreement with the Municipality of São Paulo On June 23, 2010, the Company entered into an agreement with the State of São Paulo and the Municipality of São Paulo to regulate the provision of water and sewage services in the municipality of São Paulo for a 30-year period, which is extendable for an another 30-year period. Also on June 23, 2010, an agreement was signed between the state and municipal government, and SABESP and the Sanitation and Energy Regulatory Agency of the State of São Paulo (“ARSESP”) are the consenting and intervening parties, whose main aspects are the following: 1. The State and the Municipality of São Paulo grant to SABESP the right to explore the sanitation services in the capital of the State of São Paulo, which consists of the obligation to provide such service and charge the respective tariff for this service; 2. The State and the Municipality sets forth ARSESP as the agency responsible for regulating the tariff, controlling and monitoring the services. 3. The evaluation model of the contract was the discounted cash flow, which considered the financial and economic sustainability of SABESP’s operations in the metropolitan region of São Paulo; 4. All operating costs, taxes, investments and the opportunity cost of investors and the creditors of SABESP’s were considered in the cash flow analysis; 5. The agreement provides for investments established in the agreement comply with the minimum of 13% of the gross revenue from the municipality of São Paulo, net of the taxes on revenues. Investment plans referring to SABESP’s execution shall be compatible with the activities and programs foreseen in the state, municipal sanitation plans, and where applicable, the metropolitan plan. The investment plan is not definite and will be revised by Managing Committee every four years, especially as to investments to be made in the following period; 6. The payment related to the Municipal Fund of Environmental Sanitation and Infrastructure to be applied in the sanitation service within the municipality must be recovered through the tariffs charges. Such payment represents 7.5 7. The opportunity cost of the investors and the creditors was established by the Weighted Average Cost of Capital (WACC) methodology. The WACC was the interest rate used to discount the cash flow of the operation; and 8. The agreement considers the recovery of net assets in operation, preferably evaluated through equity valuation or carrying amount monetarily restated, as defined by ARSESP. In addition, the agreement provides for the remuneration of investments to be made by SABESP, so that there is no residual value at the end of the agreement. Referring to the recovery through tariff, mentioned in item 6 above, of transfer to the Municipal Fund of Environmental Sanitation and Infrastructure, ARSESP issued in April 2013, the Resolution no. 413, postponing the application of Resolution no. 407 until the conclusion of the tariff revision process, the transfer to the bill of services of amounts referring to the municipal charges which were stipulated in Resolution no. 407. The postponement to apply Resolution no. 407 was due to a request by the São Paulo State Government to analyze, among other things, methods to reduce the impact on consumers. As of April 18, 2014, ARSESP Resolution no. 484 was published with the final results of SABESP’s Tariff Revision, however, both the São Paulo Municipal Government, through Official Letter no. 1,309/2014-SGM/GAB and the São Paulo State Government through a petition filed by the São Paulo State Office, through the Official Letter ATG/Official Letter no. 092/2014-CC, requested a postponement of the effects of ARSESP Resolution no. 413, published in the São Paulo State Official Gazette on March 20, 2013, until the conclusion of the revision of the Agreement entered into between the São Paulo Municipal Government, the São Paulo State and SABESP. On May 9, 2018, ARSESP announced the final result of the Second Ordinary Tariff Revision and, as of this revision cycle, ARSESP has been passing-on on the tariffs up to 4% of municipal revenue, which is transferred from SABESP to the Municipal Fund for Environmental Sanitation and Infrastructure legally created. Under the Second Ordinary Tariff Revision, concluded in May 2018, the only contract providing for that transfer and meeting the requirements of ARSESP was the one executed with the municipality of São Paulo. Accordingly, 4% of the funds transferred to the Municipal Fund for Environmental Sanitation and Infrastructure of São Paulo were passed-on to the tariffs of the tariff cycle ended in April 2021. The Municipal Government of São Paulo and the Company have not reached an agreement to define the percentage of the Municipal Fund for Environmental Sanitation and Infrastructure transfer to the tariffs charged by the Company in the Municipality of São Paulo, which led to the filing by the municipality claiming the percentage provided for in the contract between the parties. The municipality required the suspension of the lawsuit and SABESP has not yet been summoned. At the time of execution of the agreement, the municipality of São Paulo and the Company did not agree to settle the pending financial issues existing, related to the rendering water supply and sewage services to the properties of the Municipality, and for that reason, the Company filed lawsuits for collection of the aforementioned amounts, which remain in progress and are recorded under allowance for doubtful accounts. As of December 31, 2022 and 2021, the agreement entered into with the Municipality of São Paulo accounted for 45.14 44.45 (d) Public-Private Partnership - PPP SABESP carries out operations related to the PPPs mentioned below. These operations and their respective obligations and guarantees are supported by agreements executed according to Law 11,079/2004. Alto Tietê Production System The Company and the special purpose entity CAB-Sistema Produtor Alto Tietê S/A (currently SPAT Saneamento S/A), formed by Galvão Engenharia S.A. and Companhia Águas do Brasil – Cab Ambiental, signed in June 2008 the contract of Public-Private Partnership of Alto Tietê production system. The service contract is valid for 15 years and has the purpose of expanding the capacity of the Taiaçupeba Water Treatment Station, from 10 thousand to 15 thousand of liters per second. The operation started in October 2011. SABESP monthly transfers funds from tariffs collected for services provided to the SPE CAB Sistema Produtor Alto Tietê S/A , in the amount of R$ 14,299 The guarantee has been effective since the beginning of the operation and will be valid until the end, termination, intervention, annulment or caducity of the Administrative Concession, or other events of extinction provided for in the Concession Agreement or in the legislation applicable to administrative concessions, including in the event of bankruptcy or dissolution of the SPE. São Lourenço Production System In August 2013, the Company and the special purpose entity Sistema Produtor São Lourenço S/A, formed by of Construções e Comércio Camargo Corrêa S/A and Construtora Andrade Gutierrez S/A, signed the Public-Private Partnership agreements of the São Lourenço Production System. In May 2018, the control of SPE Sistema Produtor São Lourenço S/A was transferred to CGGC Construtora do Brasil Ltda, previously formed of Construções e Comércio Camargo Corrêa S/A and Construtora Andrade Gutierrez S/A. The objective of the contract is: a) the construction of a water production system, mainly consisting of a water pipeline connecting Ibiúna to Barueri, a water collection station in Ibiúna, a water treatment station in Vargem Grande Paulista and water reservoirs; and b) the provision of services for a 25-year term, aiming at rendering services to operate the dehydration system, drying and final disposal of sludge, maintenance and works of the São Lourenço Production System. The works started in April 2014 and The São Lourenço Production System (SPSL) PPP started operating on July 10, 2018. Since the beginning of operations, the Company monthly transfers funds from tariffs collected for services provided to the SPE Sistema Produtor São Lourenço S/A, in the amount of R$ 40,024 The guarantee will become effective as of the beginning of the system’s appropriate operation, duly accepted by SABESP, valid until the occurrence of any of the following events, whichever occurs first: (i) the original payment date of the last installment of interest / amortization of the principal taken out by the SPE to execute the works; (ii) the end, termination, intervention, annulment, caducity of the Administrative Concession, or other extinction events provided for in the Concession Agreement or in the law applicable to administrative concessions, including bankruptcy or extinction of the SPE. Intangible assets were accrued based on the physical evolution of the works, with the Public-Private Partnership accounts being the corresponding entries in liabilities. The discount rates used in the agreements of the Public-Private Partnerships Alto Tietê and São Lourenço are 8.20 7.80 The amounts recorded in intangible assets are shown in the table below: Intangible assets December 31, 2022 December 31, 2021 Alto Tietê 251,545 269,062 São Lourenço 2,725,900 2,895,798 Total 2,977,445 3,164,860 The obligations assumed by the Company as of December 31, 2022 and 2021 are shown in the table below: The obligations assumed by the Company December 31, 2022 December 31, 2021 Current liabilities Noncurrent liabilities Total liabilities Current liabilities Noncurrent liabilities Total liabilities Alto Tietê 91,782 36,645 128,427 69,442 102,873 172,315 São Lourenço 130,631 2,700,123 2,830,754 73,315 2,814,555 2,887,870 Total 222,413 2,736,768 2,959,181 142,757 2,917,428 3,060,185 (e) Amortization of intangible assets The amortization average rate totaled 5.2 4.9 4.7 . (f) Right of use Right of use Nature December 31, 2022 December 31, 2021 Leases - Contract Assets 276,893 276,893 Leases - Concession Agreements and Program Contracts Cost 405,431 405,446 Accumulated amortization (182,859 ) (159,765 ) (=) Net 222,572 245,681 Other assets (*) Vehicles 153,384 142,003 Properties 11,711 6,570 Equipment 5,826 9,841 Other assets — 15,301 Accumulated amortization (95,869 ) (69,862 ) (=) Net 75,052 103,853 Right of use 574,517 626,427 (*) From January to December 2022, costs and accumulated amortization totaling R$ 44,976 108,406 Lease liability corresponds to total future fixed lease payments, adjusted to present value, considering an incremental rate on borrowings. For further information, see Note 17. The table below shows the impact in the income statements: The table below shows the impact in the income statements Impact in the income statement December 31, 2022 December 31, 2021 December 31, 2020 Right-of-use amortization (105,551 ) (75,041 ) (79,834 ) Financial result – interest expenses (72,050 ) (68,730 ) (62,956 ) Short-term and low-value lease expenses (25,365 ) (22,467 ) (13,845 ) Decrease of the income of the year (202,966 ) (166,238 ) (156,635 ) (g) Performance Agreements SABESP has performance agreements for the construction of assets, in which the contractor is paid for the delivery of results, not only for the execution of the construction works. The performance agreements have basically three phases: (i) implementation of the scope - construction of the asset; (ii) calculation of the performance of the asset built; and (iii) payment of fixed installments. SABESP monitors the performance of the agreement and recognizes the assets when future economic benefits are generated for the Company so that costs can be reliably measured. The performance value is part of the asset’s cost, as it has better performance and, consequently, generates additional future economic benefits for the Company. The limit to be paid to the supplier corresponds to 120% of the base value of the agreement. In most agreements, when the minimum performance percentage is not reached, the amount to be paid to the supplier will be the cost of the materials used in the construction of the assets only. As of December 31, 2022 and 2021, the accounting balances of these agreements recorded in contract asset were R$ 138,550 737,657 2,126,106 871,488 . |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | 16 Property, plant and equipment (a) Statement of financial position details Schedule of statement of financial position details December 31, 2022 December 31, 2021 Cost Accumulated depreciation Net Annual Depreciation average rate Cost Accumulated depreciation Net Annual Depreciation average rate Land 94,228 — 94,228 — 94,213 — 94,213 — Buildings 90,311 (42,343 ) 47,968 2.1 % 86,703 (41,205 ) 45,498 2.1 % Equipment 412,828 (291,963 ) 120,865 15.3 % 397,782 (282,628 ) 115,154 15.1 % Transportation equipment 12,578 (10,083 ) 2,495 9.9 % 10,434 (7,962 ) 2,472 9.9 % Furniture and fixtures 38,528 (15,032 ) 23,496 6.7 % 36,561 (14,482 ) 22,079 6.7 % Other 50,189 (302 ) 49,887 5.0 % 11,982 (241 ) 11,741 5.0 % Total 698,662 (359,723 ) 338,939 11.2 % 637,675 (346,518 ) 291,157 11.1 % (b) Changes Schedule of changes in property, plant, and equipment December 31, 2021 Additions Transfers Write-offs and disposals Depreciation December 31,2022 Land 94,213 — 15 — — 94,228 Buildings 45,498 4,657 (976 ) (45 ) (1,166 ) 47,968 Equipment 115,154 27,849 1,988 (781 ) (23,345 ) 120,865 Transportation equipment 2,472 175 658 (3 ) (807 ) 2,495 Furniture and fixtures 22,079 2,646 394 (149 ) (1,474 ) 23,496 Other 11,741 38,341 (30 ) (78 ) (87 ) 49,887 Total 291,157 73,668 2,049 (1,056 ) (26,879 ) 338,939 December 31,2020 Additions Transfers Write-offs and disposals Depreciation December 31, 2021 Land 94,213 — — — — 94,213 Buildings 45,347 3,181 (1,965 ) (5 ) (1,060 ) 45,498 Equipment 101,016 38,807 (3,398 ) (365 ) (20,906 ) 115,154 Transportation equipment 2,969 97 69 — (663 ) 2,472 Furniture and fixtures 17,419 4,477 1,647 (206 ) (1,258 ) 22,079 Other 7,287 3,719 865 — (130 ) 11,741 Total 268,251 50,281 (2,782 ) (576 ) (24,017 ) 291,157 December 31, 2019 Additions Transfers Write-offs and disposals Depreciation December 31, 2020 Land 92,962 — 1,251 — — 94,213 Buildings 41,705 5,430 (713 ) — (1,075 ) 45,347 Equipment 152,273 26,055 (49,188 ) (174 ) (27,950 ) 101,016 Transportation equipment 1,984 298 1,351 — (664 ) 2,969 Furniture and fixtures 18,219 4,087 (3,712 ) (103 ) (1,072 ) 17,419 Other 7,250 6,537 (6,446 ) — (54 ) 7,287 Total 314,393 42,407 (57,457 ) (277 ) (30,815 ) 268,251 |
Borrowings and financing
Borrowings and financing | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings and financing | |
Borrowings and financing | 17 Borrowings and financing Schedule of borrowings and financing outstanding Borrowings and financing outstanding balance December 31, 2022 December 31, 2021 Financial institution Current Noncurrent Total Current Noncurrent Total Local currency 12th issue debentures 45,450 67,681 113,131 45,450 113,049 158,499 14th issue debentures — — — 25,388 — 25,388 17th issue debentures 144,632 — 144,632 102,252 101,982 204,234 18th issue debentures 49,937 45,649 95,586 48,479 92,677 141,156 21st issue debentures — — — 174,849 — 174,849 22nd issue debentures 199,901 326,433 526,334 200,000 508,530 708,530 23rd issue debentures — 864,910 864,910 — 864,776 864,776 24th issue debentures — 488,478 488,478 — 461,350 461,350 26th issue debentures — 1,239,645 1,239,645 — 1,168,317 1,168,317 27th issue debentures 299,614 698,339 997,953 — 997,433 997,433 28th issue debentures — 1,197,756 1,197,756 — 1,197,395 1,197,395 29th issue debentures — 1,275,295 1,275,295 — 1,230,602 1,230,602 30th issue debentures — 998,110 998,110 — — — Brazilian Federal Savings Bank 99,767 1,422,145 1,521,912 98,784 1,380,170 1,478,954 Brazilian Development Bank - BNDES PAC 6,736 — 6,736 13,394 6,665 20,059 Brazilian Development Bank - BNDES PAC II 9751 7,214 23,344 30,558 7,161 30,308 37,469 Brazilian Development Bank - BNDES PAC II 9752 4,887 15,884 20,771 4,851 20,619 25,470 Brazilian Development Bank - BNDES ONDA LIMPA 26,949 33,617 60,566 26,751 60,089 86,840 Brazilian Development Bank - BNDES TIETÊ III 154,437 656,264 810,701 117,593 617,251 734,844 Brazilian Development Bank - BNDES 2015 33,807 390,127 423,934 33,558 420,685 454,243 Brazilian Development Bank - BNDES 2014 6,572 16,525 23,097 6,524 22,874 29,398 Inter-American Development Bank - BID 2202 181,349 2,164,009 2,345,358 181,349 2,344,403 2,525,752 Inter-American Development Bank - BID INVEST 37,340 853,725 891,065 34,800 890,400 925,200 Inter-American Development Bank - BID INVEST 2022 14,100 452,085 466,185 — — — International Finance Corporation - IFC 80,000 670,996 750,996 — — — Leases (Concession Agreements, Program Contracts and Contract Assets) 44,453 313,391 357,844 36,640 360,671 397,311 Leases (Others) 72,109 29,265 101,374 69,306 56,663 125,969 Other 6,241 5,867 12,108 4,790 9,274 14,064 Interest and charges 417,878 — 417,878 239,581 — 239,581 Total in local currency 1,933,373 14,249,540 16,182,913 1,471,500 12,956,183 14,427,683 Borrowings and financing outstanding balance December 31, 2022 December 31, 2021 Financial institution Current Noncurrent Total Current Noncurrent Total Foreign currency Inter-American Development Bank - BID 1212 – US$30,834 thousand (US$41,112 thousand in December 2021) 53,628 107,256 160,884 57,357 172,071 229,428 Inter-American Development Bank - BID 4623 – US$74,299 thousand (US$30,329 thousand in December 2021) — 367,441 367,441 — 155,192 155,192 International Bank of Reconstruction and Development -BIRDs 7662 e 8906 – US$78,197 thousand (US$76,712 thousand in December 2021) 31,722 365,648 397,370 33,927 386,328 420,255 JICA 15 – ¥8,067,010 thousand (¥9,219,440 thousand in December 2021) 45,602 273,610 319,212 55,858 391,008 446,866 JICA 18 – ¥7,253,120 thousand (¥8,289,280 thousand in December 2021) 41,001 245,865 286,866 50,223 351,398 401,621 JICA 17 – ¥3,753,048 thousand (¥3,706,564 thousand in December 2021) 11,424 136,227 147,651 12,833 165,900 178,733 JICA 19 – ¥26,296,011 thousand (¥28,109,529 thousand in December 2021) 71,761 967,124 1,038,885 87,901 1,272,803 1,360,704 BID 1983AB – US$7,692 thousand (US$15,385 thousand in December 2021) 39,962 — 39,962 42,927 42,336 85,263 Interest and charges 17,487 — 17,487 18,091 — 18,091 Total in foreign currency 312,587 2,463,171 2,775,758 359,117 2,937,036 3,296,153 Total borrowings and financing 2,245,960 16,712,711 18,958,671 1,830,617 15,893,219 17,723,836 Exchange rate as of December 31, 2022: US$ 5.2177 0.03957 5.5805 0.04847 As of December 31, 2022, the Company did not have balances of borrowings and financing, raised during the year, to mature within 12 months. Schedule of borrowings terms Local currency Guarantees Maturity Annual interest rates Inflation adjustment 12th issue debentures Own funds 2025 TR + 9.5% 14th issue debentures Own funds 2022 TJLP +1.92% (Series 1 and 3) and 9.19% (Series 2) IPCA (Series 2) 17th issue debentures Own funds 2023 CDI +0.75% (Series 1) and 4.5% (Series 2) and 4.75% (Series 3) IPCA (Series 2 and 3) 18th issue debentures Own funds 2024 TJLP + 1.92 % (Series 1 and 3) and 8.25% (Series 2) IPCA (Series 2) 21st issue debentures Own funds 2022 CDI + 0.60% e CDI+ 0.90% 22nd issue debentures Own funds 2025 CDI +0.58% (Series 1) and CDI + 0.90% (Series 2) and 6.0% (Series 3) IPCA (Series 3) 23rd issue debentures Own funds 2027 CDI +0.49% (Series 1) and CDI + 0.63% (Series 2) 24th issue debentures Own funds 2029 3.20% (Series 1) and 3.37% (Series 2) IPCA (Series 1 and 2) 26th issue debentures Own funds 2030 4.65% (series 1) and 4.95% (series 2) IPCA (series 1 and 2) 27th issue debentures Own funds 2027 CDI +1.60% (Series 1) and CDI + 1.80% (Series 2) and 2.25% (Series 3) 28th issue debentures Own funds 2028 CDI +1.20% (Series 1) and CDI + 1.44% (Series 2) and 1.60% (Series 3) 29th issue debentures Own funds 2036 CDI +1.29% (Series 1) and 5.3058% (Series 2) and 5.4478% (Series 3) IPCA (series 2 and 3) 30th issue debentures Own funds 2029 CDI +1.30% (Series 1) and 1.58% (Series 2) Brazilian Federal Savings Bank Own funds 2023/2042 5% to 9.5% TR Brazilian Development Bank - BNDES PAC Own funds 2023 TJLP+1.82% Brazilian Development Bank - BNDES PAC II 9751 Own funds 2027 TJLP+1.72% Brazilian Development Bank - BNDES PAC II 9752 Own funds 2027 TJLP+1.72% Brazilian Development Bank - BNDES ONDA LIMPA Own funds 2025 TJLP+1.92% Brazilian Development Bank - BNDES TIETÊ III Own funds 2028 TJLP+1.66% Brazilian Development Bank - BNDES 2015 Own funds 2035 TJLP+2.18% Brazilian Development Bank - BNDES 2014 Own funds 2026 TJLP+1.76% Inter-American Development Bank – BID 2202 Government 2035 CDI+0.86% Inter-American Development Bank – BID INVEST Own funds 2034 CDI+1.90% and CDI+2.70% Inter-American Development Bank – BID INVEST 2022 Own funds 2036 CDI+2.50% International Finance Corporation – IFC Own funds 2032 CDI+2.00% Leases (Concession Agreements, Program Contracts and Contract Assets) 2035 7.73% to 10.12% IPC Leases (Others) 2027 5.20% to 15.39% Other Own funds 2025 3% (FEHIDRO) and TJLP + 1.5% (FINEP) Foreign currency Guarantees Maturity Annual interest rates Exchange rate changes Inter-American Development Bank - BID 1212 - US$30,834 thousand Government 2025 3.31% (*) US$ Inter-American Development Bank - BID 4623 - US$74,299 thousand Government 2044 1.12% (*) US$ International Bank for Reconstruction and Development – BIRDs 7662 and 8906 - US$78,197 thousand Government 2034 2.85% (*) US$ JICA 15 – ¥8,067,010 thousand Government 2029 1.8% and 2.5% Yen JICA 18 – ¥7,253,120 thousand Government 2029 1.8% and 2.5% Yen JICA 17– ¥3,753,048 thousand Government 2035 1.2% and 0.01% Yen JICA 19– ¥26,296,011 thousand Government 2037 1.7% and 0.01% Yen BID 1983AB – US$7,692 thousand - 2023 2.08% to 2.38% (*) US$ (*) Rates comprising SOFR + contractually defined spread. (i) Payment schedule – book value as of December 31, 2022 Schedule of borrowings payment schedule 2023 2024 2025 2026 2027 2028 2029 to 2044 TOTAL LOCAL CURRENCY Debentures 739,534 1,072,853 1,203,451 1,082,322 1,700,765 644,748 1,498,157 7,941,830 Brazilian Federal Savings Bank 99,767 99,270 105,476 112,071 119,068 126,371 859,889 1,521,912 BNDES 240,602 233,867 213,586 203,726 191,168 72,322 221,092 1,376,363 BID 2202 181,349 181,349 181,349 181,349 181,349 181,349 1,257,264 2,345,358 BID INVEST 37,340 39,550 44,300 106,390 108,728 143,591 411,166 891,065 BID INVEST 2022 14,100 14,100 38,275 38,431 38,431 38,431 284,417 466,185 IFC 80,000 80,000 80,000 80,000 80,000 80,000 270,996 750,996 Leases (Concession Agreements, Program Contracts and Contract Assets) 44,453 46,638 45,839 30,769 33,767 33,968 122,410 357,844 Leases (Others) 72,109 15,580 9,248 3,972 465 — — 101,374 Other 6,241 2,979 2,746 142 — — — 12,108 Interest and charges 417,878 — — — — — — 417,878 TOTAL IN LOCAL CURRENCY 1,933,373 1,786,186 1,924,270 1,839,172 2,453,741 1,320,780 4,925,391 16,182,913 FOREIGN CURRENCY BID 53,628 53,628 63,830 20,403 20,403 20,403 296,030 528,325 BIRD 31,722 31,722 31,722 31,722 31,722 31,722 207,038 397,370 JICA 169,788 169,787 169,787 169,787 169,787 169,787 773,891 1,792,614 BID 1983AB 39,962 — — — — — — 39,962 Interest and charges 17,487 — — — — — — 17,487 TOTAL IN FOREIGN CURRENCY 312,587 255,137 265,339 221,912 221,912 221,912 1,276,959 2,775,758 Overall Total 2,245,960 2,041,323 2,189,609 2,061,084 2,675,653 1,542,692 6,202,350 18,958,671 (ii) Changes Schedule of changes in borrowings December 31, 2021 Addition (lease) Funding Borrowing costs Monetary and Exchange variation Inflation adjustment / exchange variation and incorporated interest – Capitalized Interest paid Amortization Accrued interest Provision for interest and fees – Capitalized Expenses with borrowing costs December 31, 2022 LOCAL CURRENCY Debentures 7,467,968 — 1,000,000 (4,320 ) 165,879 — (712,966 ) (563,504 ) 544,116 257,951 11,242 8,166,366 Brazilian Federal Savings Bank 1,483,113 — 119,437 — 17,247 7,131 (117,041 ) (100,855 ) 80,422 36,731 — 1,526,185 BNDES 1,392,844 — 200,000 — 7,020 3,117 (104,596 ) (222,353 ) 67,311 37,391 259 1,380,993 BID 2202 2,589,442 — — — — — (281,971 ) (181,349 ) 98,574 224,899 955 2,450,550 BID INVEST 956,942 — — — — — (108,921 ) (34,800 ) 129,733 — 665 943,619 IFC — — 760,000 (9,385 ) — — (24,978 ) — — 48,507 381 774,525 BID INVEST 2022 — — 470,000 (3,922 ) — — (30,698 ) — 33,840 — 107 469,327 Leases (Concession Agreements, Program Contracts and Contract Assets) 397,311 — — — — — (54,390 ) (39,467 ) 54,390 — — 357,844 Leases (Others) 125,969 42,182 — — — — (17,659 ) (84,437 ) 35,319 — — 101,374 Other 14,094 — 3,654 — 56 2 (789 ) (5,669 ) 748 34 — 12,130 TOTAL IN LOCAL CURRENCY 14,427,683 42,182 2,553,091 (17,627 ) 190,202 10,250 (1,454,009 ) (1,232,434 ) 1,044,453 605,513 13,609 16,182,913 FOREIGN CURRENCY BIDs 387,837 — 226,497 (6,732 ) (20,355 ) — (12,581 ) (56,273 ) 13,733 — 567 532,693 BIRD 420,881 — 39,417 (3,166 ) (28,665 ) 61 (3,779 ) (30,895 ) 5,525 20 363 399,762 JICA 2,401,887 — 15,546 — (437,296 ) 3,243 (33,167 ) (177,007 ) 26,597 3,102 204 1,803,109 BID 1983AB 85,548 — — — (5,602 ) — (1,952 ) (40,115 ) 1,284 614 417 40,194 TOTAL IN FOREIGN CURRENCY 3,296,153 — 281,460 (9,898 ) (491,918 ) 3,304 (51,479 ) (304,290 ) 47,139 3,736 1,551 2,775,758 TOTAL 17,723,836 42,182 2,834,551 (27,525 ) (301,716 ) 13,554 (1,505,488 ) (1,536,724 ) 1,091,592 609,249 15,160 18,958,671 December 31, 2020 Addition (lease) Funding Borrowing costs Monetary and Exchange variation Inflation adjustment / exchange variation and incorporated interest – Capitalized Interest paid Amortization Accrued interest Provision for interest and fees – Capitalized Expenses with borrowing costs December 31, 2021 LOCAL CURRENCY Debentures 6,756,504 — 2,450,000 (25,717 ) 225,106 — (387,618 ) (1,963,282 ) 258,114 139,563 15,298 7,467,968 Brazilian Federal Savings Bank 1,418,832 — 156,488 — 685 — (113,030 ) (93,064 ) 79,966 33,236 — 1,483,113 BNDES 1,370,902 — 207,136 — — — (88,084 ) (186,179 ) 51,122 37,688 259 1,392,844 BID 2202 2,730,195 — — — — — (97,829 ) (181,349 ) 63,964 73,506 955 2,589,442 BID INVEST 944,513 — — — — — (33,276 ) (18,340 ) 63,380 — 665 956,942 Leases (Concession Agreements, Program Contracts and Contract Assets) 428,743 — — — — — (52,250 ) (31,432 ) 52,250 — — 397,311 Leases (Others) 45,876 140,187 — — — — (15,782 ) (76,013 ) 31,701 — — 125,969 Other 15,197 — 2,921 (32 ) — — (718 ) (3,986 ) 690 22 — 14,094 TOTAL IN LOCAL CURRENCY 13,710,762 140,187 2,816,545 (25,749 ) 225,791 — (788,587 ) (2,553,645 ) 601,187 284,015 17,177 14,427,683 FOREIGN CURRENCY BIDs 317,302 — 108,728 (7,620 ) 22,979 — (8,488 ) (53,197 ) 7,936 — 197 387,837 BIRD 426,860 — — (3,377 ) 30,814 — (2,481 ) (32,965 ) 1,789 — 241 420,881 JICA 2,684,321 — 34,360 (76 ) (108,851 ) 10,198 (43,184 ) (216,190 ) 35,315 5,802 192 2,401,887 BID 1983AB 119,379 — — — 6,536 — (2,705 ) (40,607 ) 1,753 777 415 85,548 TOTAL IN FOREIGN CURRENCY 3,547,862 — 143,088 (11,073 ) (48,522 ) 10,198 (56,858 ) (342,959 ) 46,793 6,579 1,045 3,296,153 TOTAL 17,258,624 140,187 2,959,633 (36,822 ) 177,269 10,198 (845,445 ) (2,896,604 ) 647,980 290,594 18,222 17,723,836 December 31, 2019 Foreign/local currency translation Addition (lease) Funding Borrowing costs Monetary and exchange variation Inflation adjustment / exchange variation and incorporated interest – Capitalized Interest paid Amortization Accrued interest Provision for interest and fees – Capitalized Expenses with borrowing costs December 31, 2020 LOCAL CURRENCY Debentures 3,711,228 — — 3,507,640 (52,328 ) 86,939 — (161,494 ) (572,871 ) 201,150 26,073 10,167 6,756,504 Brazilian Federal Savings Bank 1,429,250 — — 74,485 — — — (111,601 ) (84,821 ) 73,067 38,452 — 1,418,832 BNDES 1,201,411 — — 213,514 — — — (47,164 ) (81,213 ) 47,668 36,427 259 1,370,902 BID 2202 — 2,807,371 — — — — — (37,613 ) (90,674 ) 22,668 27,886 557 2,730,195 BID INVEST — — — 950,000 (7,125 ) — — — — 1,638 — — 944,513 Leases (Concession Agreements, Program Contracts and Contract Assets) 459,671 — — — — — — (51,431 ) (30,928 ) 51,431 — — 428,743 Leases (Others) 74,453 — 28,549 — — — — (9,108 ) (56,571 ) 8,553 — — 45,876 Other 9,898 — — 7,250 — — — (671 ) (1,962 ) 651 31 — 15,197 TOTAL IN LOCAL CURRENCY 6,885,911 2,807,371 28,549 4,752,889 (59,453 ) 86,939 — (419,082 ) (919,040 ) 406,826 128,869 10,983 13,710,762 FOREIGN CURRENCY BIDs 2,316,190 (2,807,371 ) — 52,141 (6,635 ) 845,246 48,246 (45,010 ) (121,088 ) 10,490 24,695 398 317,302 BIRD 357,880 — — — (2,029 ) 102,029 1,217 (7,572 ) (31,216 ) 5,659 752 140 426,860 Eurobonds 1,413,956 — — — — 457,931 — (104,170 ) (1,868,676 ) 90,941 9,195 823 — JICA 2,106,908 — — 40,830 (117 ) 715,956 17,841 (43,758 ) (200,597 ) 40,172 6,897 189 2,684,321 BID 1983AB 163,864 — — — (152 ) 59,078 — (7,033 ) (103,482 ) 5,843 618 643 119,379 TOTAL IN FOREIGN CURRENCY 6,358,798 (2,807,371 ) — 92,971 (8,933 ) 2,180,240 67,304 (207,543 ) (2,325,059 ) 153,105 42,157 2,193 3,547,862 TOTAL 13,244,709 — 28,549 4,845,860 (68,386 ) 2,267,179 67,304 (626,625 ) (3,244,099 ) 559,931 171,026 13,176 17,258,624 (a) Main events in 2022 (i) Debentures As of March 18, 2022, the Company raised R$ 1.0 . The 30th issue debentures was as follows: Schedule of funding Value Maturity Remuneration Series 1 R$ 500,000 03/2027 CDI + 1.30 p.a. Series 2 R$ 500,000 03/2029 CDI + 1.58 p.a. · The covenants agreed for the 30 th Calculated every quarter, when disclosing the quarterly information or annual financial statements: - Net debt/adjusted EBITDA lower than or equal to 3.50; - Adjusted EBITDA/paid financial expenses equal to or higher than 1.5; - Disposal of operating assets, termination of licenses, loss of concession or loss of the Issuer’s ability to execute and operate public sanitation services in areas of the São Paulo State which, individually or jointly during the term of the agreement, lead to a reduction of the Issuer’s net sales and/or service revenue of more than twenty- five percent ( 25 The failure to comply with the covenants for at least two consecutive quarters, or for two non-consecutive quarters within twelve months, will cause the early termination of the agreement (in which case the 30-day cure period does not apply). The contracts have a cross acceleration clause, i.e. the early maturity of any of the Company’s debts, in an individual or aggregate amount equal to or higher than R$ 182 In the first quarter of 2022, the Company paid the final amortization of the 14th issue debentures, totaling R$ 27.6 million 25.7 million 1.9 million In the second quarter of 2022, the Company paid the final amortization of the 21st issue debentures, totaling R$ 185.1 million 175.0 million 10.1 million IDB INVEST 2022 On July 15, 2022, the Company raised R$ 470.0 million The proceeds raised from this contract will be exclusively used to cover the costs of the Tietê River Cleaning Project. The principal will be amortized in semi-annual payments in June and December, starting in June 2023 and ending in June 2036. Interests mature semi-annually in December and June, starting in December 2022 and ending in June 2036, at CDI + 2.5% p.a. ● The covenants agreed upon for IDB INVEST 2022 are: Calculated every quarter, when disclosing the quarterly information or annual financial statements: - Net debt/adjusted EBITDA equal to or lower than 3.50; - Adjusted EBITDA/paid financial expenses equal to or higher than 2.35; They should be maintained for two (2) consecutive quarters or not, for any four (4) consecutive quarters. International Finance Corporation On July 27, 2022, the Company raised R$ 760.0 million The funds raised will be used to finance: ● the capital expenses related to the New Pinheiros River program; ● the capital expenses to improve sanitation in the São Paulo coastal regions; and ● the capital expenses to improve water supply in municipalities of the São Paulo coastal region and suburbs of the São Paulo municipality. The principal will be amortized in semi-annual payments in April and October, starting in April 2023 and ending in April 2032. Interests mature semi-annually in October and April, starting in October 2022 and ending in April 2032, at CDI + 2.0% p.a. ● The covenants agreed upon for IFC are: Calculated every quarter, when disclosing the quarterly information or annual financial statements: - Net debt/adjusted EBITDA equal to or lower than 3.50; - Adjusted EBITDA/paid financial expenses equal to or higher than 2.35; They should be maintained for two (2) consecutive quarters or not, for any four (4) consecutive quarters. (b) Leases The Company has work service agreements which includes specific assets under lease terms. During the construction period, works are capitalized to intangible assets in progress and the lease amount is recorded in the same proportion. After startup, the lease payment period starts (240 monthly installments), whose amount is periodically restated by contracted price index. The amounts payable for the right of use of assets are also recorded in this line (Note 15 (f)). (c) Financial commitments - Covenants The table below shows the more restrictive covenants ratios as of December 31, 2022. Schedule of restrictive covenants ratios Covenants Adjusted EBITDA / Adjusted Financial Expenses Equal to or higher than 2.80 EBITDA / Financial Expenses Paid Equal to or higher than 2.35 Adjusted Net Debt / Adjusted EBITDA Equal to or lower than 3.80 Net Debt / Adjusted EBITDA Equal to or lower than 3.50 Total Adjusted Debt / Adjusted EBITDA Lower than 3.65 Other Onerous Debt (1) Equal to or lower than 1.30 Adjusted Current Ratio Higher than 1.00 (1) The contractual definition of “Other Onerous Debts” corresponds to the sum of pension plan obligations and healthcare plan, installment payments of tax debts, and installments payments of debts with the electricity supplier. As of December 31, 2022 and 2021, the Company met the financial debt covenants as set forth by its borrowing and financing agreements. (d) Borrowings and financing – Credit Limits Schedule of borrowings and financing - Credit Limits Agent December 31, 2022 (in millions of reais (*) Brazilian Federal Savings Bank 1,079 Brazilian Development Bank – BNDES 255 Inter-American Development Bank – BID 1,178 International Bank for Reconstruction and Development - IBRD 1,259 Other 18 TOTAL 3,789 (*) Brazilian Central Bank’s exchange sell rate as of December 30, 2022 (US$ 1.00 = R$ 5.2177; ¥ 1.00 = R$ 0.03957). Financing resources contracted have specific purposes, which have been released for the execution of their respective investments, according to the progress of the works. |
Taxes recoverable_payable
Taxes recoverable/payable | 12 Months Ended |
Dec. 31, 2022 | |
Taxes Recoverablepayable | |
Taxes recoverable/payable | 18 Taxes recoverable/payable (a) Current assets Current assets December 31, 2022 December 31, 2021 Recoverable taxes Income tax and social contribution 206,517 259,902 Withholding income tax (IRRF) on financial investments 33,283 13,041 Other federal taxes 3,106 3,161 Total 242,906 276,104 (b) Current liabilities Current liabilities December 31, 2022 December 31, 2021 Taxes and contributions payable Cofins and Pasep 134,624 111,963 INSS (social security contribution) 44,515 39,902 IRRF (withholding income tax) 63,361 49,468 Other 50,961 55,797 Total 293,461 257,130 On February 08, 2023, the Federal Supreme Court (STF) unanimously decided that a final decision favorable to companies on taxes paid on a continuous base would lose its effects if the STF later rules against it. The Company analyzed the matter judged in this decision, which covers Social Contribution on Net Profit, as well as other taxes that fit into the decision granted, and did not identify any impact on the Financial Statements. |
Deferred taxes and contribution
Deferred taxes and contributions | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Taxes And Contributions | |
Deferred taxes and contributions | 19 Deferred taxes and contributions (a) Statement of financial position details Schedule of deferred taxes December 31, 2022 December 31, 2021 Deferred income tax assets Provisions 560,404 503,374 Pension obligations - G1 141,606 150,577 Donations of underlying asset on concession agreements 46,088 47,589 Credit losses 199,363 183,963 Other 171,798 127,092 Total deferred tax assets 1,119,259 1,012,595 Deferred income tax liabilities Temporary difference on concession of intangible asset (353,817 ) (368,235 ) Capitalization of borrowing costs (457,669 ) (404,931 ) Profit on supply to government entities (346,650 ) (353,262 ) Actuarial gain/loss – G1 Plan (93,561 ) (109,271 ) Construction margin (43,323 ) (46,079 ) Borrowing costs (13,517 ) (14,556 ) Total deferred tax liabilities (1,308,537 ) (1,296,334 ) Deferred tax assets (liabilities), net (189,278 ) (283,739 ) (b) Realization Schedule of realization December 31, 2022 December 31, 2021 Deferred income tax assets to be realized within 12 months 318,965 280,373 to be realized after one year 800,294 732,222 Total deferred tax asset 1,119,259 1,012,595 Deferred income tax liabilities to be realized within 12 months (25,746 ) (31,777 ) to be realized after one year (1,282,791 ) (1,264,557 ) Total deferred tax liabilities (1,308,537 ) (1,296,334 ) Deferred tax liability, net (189,278 ) (283,739 ) (c) Changes Schedule of changes Deferred income tax assets December 31, 2021 Variação líquida December 31, 2022 Provisions 503,374 57,030 560,404 Pension obligations - G1 150,577 (8,971 ) 141,606 Donations of underlying asset on concession agreements 47,589 (1,501 ) 46,088 Credit losses 183,963 15,400 199,363 Other 127,092 44,706 171,798 Total 1,012,595 106,664 1,119,259 Deferred income tax liabilities Temporary difference on concession of intangible asset (368,235 ) 14,418 (353,817 ) Capitalization of borrowing costs (404,931 ) (52,738 ) (457,669 ) Profit on supply to governmental entities (353,262 ) 6,612 (346,650 ) Actuarial (gain)/loss – G1 (109,271 ) 15,710 (93,561 ) Construction margin (46,079 ) 2,756 (43,323 ) Borrowing costs (14,556 ) 1,039 (13,517 ) Total (1,296,334 ) (12,203 ) (1,308,537 ) Deferred tax liabilities, net (283,739 ) 94,461 (189,278 ) Deferred income tax assets December 31, 2020 Net change December 31, 2021 Provisions 436,445 66,929 503,374 Pension obligations - G1 154,498 (3,921 ) 150,577 Donations of underlying asset on concession agreements 50,142 (2,553 ) 47,589 Credit losses 155,719 28,244 183,963 Other 134,932 (7,840 ) 127,092 Total 931,736 80,859 1,012,595 Deferred income tax liabilities Temporary difference on concession of intangible asset (388,675 ) 20,440 (368,235 ) Capitalization of borrowing costs (390,211 ) (14,720 ) (404,931 ) Profit on supply to governmental entities (356,513 ) 3,251 (353,262 ) Actuarial (gain)/loss – G1 (48,979 ) (60,292 ) (109,271 ) Construction margin (48,843 ) 2,764 (46,079 ) Borrowing costs (19,231 ) 4,675 (14,556 ) Total (1,252,452 ) (43,882 ) (1,296,334 ) Deferred tax liabilities, net (320,716 ) 36,977 (283,739 ) Deferred income tax assets December 31, 2019 Net change December 31, 2020 Provisions 366,673 69,772 436,445 Pension obligations - G1 157,998 (3,500 ) 154,498 Donations of underlying asset on concession agreements 51,818 (1,676 ) 50,142 Credit losses 145,622 10,097 155,719 Other 183,147 (48,215 ) 134,932 Total 905,258 26,478 931,736 Deferred income tax liabilities Temporary difference on concession of intangible asset (408,732 ) 20,057 (388,675 ) Capitalization of borrowing costs (409,236 ) 19,025 (390,211 ) Profit on supply to governmental entities (372,289 ) 15,776 (356,513 ) Actuarial (gain)/loss – G1 (54,222 ) 5,243 (48,979 ) Construction margin (83,399 ) 34,556 (48,843 ) Borrowing costs (11,376 ) (7,855 ) (19,231 ) Total (1,339,254 ) 86,802 (1,252,452 ) Deferred tax liabilities, net (433,996 ) 113,280 (320,716 ) December 31, 2022 December 31, 2021 December 31, 2020 Opening balance (283,739 ) (320,716 ) (433,996 ) Net change in the year: - corresponding entry to the income statement 78,751 97,269 108,037 - corresponding entry to valuation adjustments to equity (Note 22) 15,710 (60,292 ) 5,243 Total net change 94,461 36,977 113,280 Closing balance (189,278 ) (283,739 ) (320,716 ) (d) Reconciliation of the effective tax rate The amounts recorded as income tax and social contribution expenses in the financial statements are reconciled to the statutory rates, as shown below: Reconciliation of the effective tax rate December 31, 2022 December 31, 2021 December 31, 2020 Profit before income taxes 4,272,750 3,170,156 1,326,002 Statutory rate 34 % 34 % 34 % Estimated expense at the statutory rate (1,452,735 ) (1,077,853 ) (450,841 ) Tax benefit of interest on equity 284,920 200,073 126,604 Permanent differences Provision – Law 4,819/1958 – G0 (i) (26,786 ) (22,640 ) (37,675 ) Donations (16,588 ) (16,723 ) (8,672 ) Other differences 59,706 52,856 17,900 Income tax and social contribution (1,151,483 ) (864,287 ) (352,684 ) Current income tax and social contribution (1,230,234 ) (961,556 ) (460,721 ) Deferred income tax and social contribution 78,751 97,269 108,037 Effective rate 27 % 27 % 27 % (i) Permanent difference related to the provision for actuarial liability (Note 22 (ii) and (v)). |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [abstract] | |
Provisions | 20 Provisions (a) Lawsuits and proceedings that resulted in provisions (I) Statement of financial position details The Company is party to a number of legal claims and administrative proceedings arising from the normal course of business, including civil, tax, labor and environmental matters. Management recognizes provisions in the financial statements consistently with the recognition and measurement criteria established in Note 3.15. The ultimate timing and amounts of the payments depends on the outcome of the court cases. Schedule of lawsuits and proceedings that resulted in provisions December 31, 2022 December 31, 2021 Provisions Escrow deposits Provisions net of deposits Provisions Escrow deposits Provisions net of deposits Customer claims (i) 151,023 (6,226 ) 144,797 168,258 (10,780 ) 157,478 Supplier claims (ii) 257,080 (53 ) 257,027 477,854 (123 ) 477,731 Other civil claims (iii) 99,462 (1,131 ) 98,331 95,601 (2,523 ) 93,078 Tax claims (iv) 79,532 (16,037 ) 63,495 57,509 (2,693 ) 54,816 Labor claims (v) 654,277 (13,979 ) 640,298 349,962 (15,864 ) 334,098 Environmental claims (vi) 406,872 (36 ) 406,836 331,326 (34 ) 331,292 Total 1,648,246 (37,462 ) 1,610,784 1,480,510 (32,017 ) 1,448,493 Current 924,038 — 924,038 809,821 — 809,821 Noncurrent 724,208 (37,462 ) 686,746 670,689 (32,017 ) 638,672 (II) Changes Schedule of changes in provisions December 31, 2021 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used(reversal) December 31,2022 Customer claims (i) 168,258 12,258 21,316 (29,363 ) (21,446 ) 151,023 Supplier claims (ii) 477,854 78,481 56,934 (309,321 ) (46,868 ) 257,080 Other civil claims (iii) 95,601 22,485 13,708 (9,248 ) (23,084 ) 99,462 Tax claims (iv) 57,509 18,216 7,837 (1,568 ) (2,462 ) 79,532 Labor claims (v) 349,962 307,352 131,139 (76,884 ) (57,292 ) 654,277 Environmental claims (vi) 331,326 38,632 48,511 (300 ) (11,297 ) 406,872 Subtotal 1,480,510 477,424 279,445 (426,684 ) (162,449 ) 1,648,246 Escrow deposits (32,017 ) (55,546 ) (4,779 ) 13,832 41,048 (37,462 ) Total 1,448,493 421,878 274,666 (412,852 ) (121,401 ) 1,610,784 December 31, 2020 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used (reversal) December 31, 2021 Customer claims (i) 160,705 32,996 29,685 (30,972 ) (24,156 ) 168,258 Supplier claims (ii) 410,734 92,135 90,788 (71,238 ) (44,565 ) 477,854 Other civil claims (iii) 86,083 15,477 12,850 (10,056 ) (8,753 ) 95,601 Tax claims (iv) 59,678 8,630 8,054 (15,133 ) (3,720 ) 57,509 Labor claims (v) 316,880 100,245 36,373 (66,220 ) (37,316 ) 349,962 Environmental claims (vi) 249,582 40,477 50,957 (33 ) (9,657 ) 331,326 Subtotal 1,283,662 289,960 228,707 (193,652 ) (128,167 ) 1,480,510 Escrow deposits (31,360 ) (39,586 ) (11,852 ) 48,805 1,976 (32,017 ) Total 1,252,302 250,374 216,855 (144,847 ) (126,191 ) 1,448,493 December 31, 2019 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used (reversal) December 31, 2020 Customer claims (i) 253,665 16,465 19,638 (78,640 ) (50,423 ) 160,705 Supplier claims (ii) 153,654 149,566 201,259 (68,801 ) (24,944 ) 410,734 Other civil claims (iii) 93,910 15,944 11,109 (23,009 ) (11,871 ) 86,083 Tax claims (iv) 59,143 4,333 2,737 (1,875 ) (4,660 ) 59,678 Labor claims (v) 325,129 61,782 35,541 (61,039 ) (44,533 ) 316,880 Environmental claims (vi) 192,950 35,392 27,718 — (6,478 ) 249,582 Subtotal 1,078,451 283,482 298,002 (233,364 ) (142,909 ) 1,283,662 Escrow deposits (42,643 ) (12,907 ) (2,225 ) 18,675 7,740 (31,360 ) Total 1,035,808 270,575 295,777 (214,689 ) (135,169 ) 1,252,302 (b) Lawsuits deemed as contingent liabilities The Company is party to lawsuits and administrative proceedings relating to environmental, tax, civil and labor claims, which are assessed as contingent liabilities in the financial statements, since it either does not expect outflows to be required or the amount of the obligation cannot be reliably measured. Contingent liabilities, net of escrow deposits, are represented as follows: Lawsuits deemed as contingent liabilities December 31, 2022 December 31, 2021 Customer claims (i) 200,966 173,875 Supplier claims (ii) 1,147,606 1,521,935 Other civil claims (iii) 1,146,048 852,735 Tax claims (iv) 1,869,583 1,548,781 Labor claims (v) 1,471,423 1,095,841 Environmental claims (vi) 3,302,843 3,201,716 Total 9,138,469 8,394,883 (c) Explanation on the nature of main classes of lawsuits (i) Customer claims Refer mainly to lawsuits from customers claiming that their tariffs should be equal to those of other consumer categories, lawsuits for reduction of sewage tariff due to system losses, consequently requiring the refund of amounts charged by the Company, and lawsuits for reduction of tariff for being eligible to the Social Welfare Entity category. (ii) Supplier claims These lawsuits include lawsuits filed by some suppliers alleging underpayment of monetary restatements and the economic and financial imbalance of the agreements, and are in progress at different courts. (iii) Other civil claims These mainly refer to indemnities for property damage, pain and suffering, and loss of profits allegedly caused to third parties, such as vehicle accidents, claims, challenges on the methodology to collect tariffs, among others, filed at different court levels. (iv) Tax claims Tax claims refer mainly to issues related to tax collections and fines in general challenged due to disagreements regarding notification or differences in the interpretation of legislation by the Company's Management. The Municipality of São Paulo, through Law 13,476/2022, revoked the exemption of the service tax held by the Company until then and issued tax deficiency notices related to sewage services and ancillary activities, in the adjusted amount of R$ 957,199 857,688 (v) Labor claims The Company is a party to a number of labor lawsuits, involving issues such as overtime, shift schedule, health hazard premium and hazardous duty premium, prior notice, change of function, salary equalization, service outsourcing and other, which are at various court levels. (vi) Environmental claims These refer to several administrative proceedings and lawsuits filed by government entities, including Companhia Ambiental do Estado de São Paulo – CESTESB and the Public Prosecution Office of the State of São Paulo, which aim at certain obligations to do and not to do, with the provision of fines for non-compliance, and imposition of compensation for environmental damages allegedly caused by the Company. The main objects in which the Company is involved are: a) blame SABESP for discharging or releasing sewage without proper treatment; b) invest in the water and sewage treatment system of the municipality, under penalty of paying a fine; c) pay compensation for environmental damages; amongst others. (d) Other concession-related legal proceedings The Company is a party to concessions-related legal proceedings, in which it challenges compensatory issues for the resumption of sanitation services by some municipalities or by the right to continue operating said services. The amount recorded as indemnities receivable in noncurrent assets, referring to municipalities of Cajobi, Macatuba, Álvares Florence, Embaúba, Araçoiaba da Serra and Itapira was R$ 27,539 27,539 (e) Environmental lawsuits with settlements In 2022, the Company executed court agreements totaling R$ 308,134 302,873 5,261 (f) Guarantee insurance for escrow deposit On May 25, 2022, the Company executed an agreement effective for one year for the issue of policies under several types of guarantee insurance. The limit that can be used is R$ 600 432.2 million |
Labor and social obligations
Labor and social obligations | 12 Months Ended |
Dec. 31, 2022 | |
Labor And Social Obligations | |
Labor and social obligations | 21 Labor and social obligations Schedule of employees benefits December 31, 2022 December 31, 2021 Salaries and payroll charges 70,089 58,591 Provision for vacation 254,469 226,127 Healthcare plan (i) 70,136 45,915 Provision for profit sharing (ii) 96,227 88,376 Consent Decree (TAC) 6,114 5,723 Knowledge Retention Program (PRC) 1,469 1,884 Total 498,504 426,616 (i) Health plan – Medical Assistance Benefits granted are paid after the event, free of choice, and are sponsored by the contributions SABESP and the employees. In 2022, the Company contributed 8.8 272,460 8.50 232,850 (ii) Profit sharing The profit sharing program was implemented in accordance with an agreement with the labor union. Payment corresponds to up to one-month salary for each employee, depending on performance of goals reached from January to December, and should be paid in the subsequent year. |
Pension plan obligations
Pension plan obligations | 12 Months Ended |
Dec. 31, 2022 | |
Pension Plan Obligations | |
Pension plan obligations | 22 Pension plan obligations The Company has Post-Employment Benefit Plans in the following modalities: Defined Benefit (BD) – G1 (i) and G0 (ii); Defined Contribution (CD) – Sabesprev Mais (iii) and VIVEST (iv), whereby only the latter is open for new adhesions. See the reconciliation expenses with such plans in item (v). Statements of defined benefit plans Summary of pension obligations – Liabilities Schedule of pension plan benefits December 31, 2022 December 31, 2021 G1 Plan G0 Plan Total G1 Plan G0 Plan Total Present value of the defined benefit obligations (2,715,388 ) (2,002,075 ) (4,717,463 ) (2,764,027 ) (2,192,062 ) (4,956,089 ) Fair value of the plan’s assets 2,567,272 — 2,567,272 2,634,427 — 2,634,427 Total pension plan obligations (deficit) (148,116 ) (2,002,075 ) (2,150,191 ) (129,600 ) (2,192,062 ) (2,321,662 ) Changes in Liabilities Schedule of reconciliation of defined benefit obligations December 31, 2022 December 31, 2021 G1 Plan G0 Plan Total G1 Plan G0 Plan Total Plan’s liabilities Defined benefit obligation, beginning of the year (2,764,027 ) (2,192,062 ) (4,956,089 ) (3,112,980 ) (2,549,541 ) (5,662,521 ) Current service cost (35,020 ) — (35,020 ) (32,777 ) — (32,777 ) Interest costs (231,745 ) (176,953 ) (408,698 ) (205,707 ) (158,244 ) (363,951 ) Actuarial (gains)/losses recorded as other comprehensive income 126,626 161,766 288,392 414,823 330,337 745,160 Benefits paid 188,778 205,174 393,952 172,614 185,386 358,000 Defined benefit obligation, end of the year (2,715,388 ) (2,002,075 ) (4,717,463 ) (2,764,027 ) (2,192,062 ) (4,956,089 ) Plan’s assets Fair value of the plan’s assets, beginning of the year 2,634,427 — 2,634,427 2,793,927 — 2,793,927 Expected return of the plan’s assets 221,079 — 221,079 184,687 — 184,687 Company’s contributions 39,377 — 39,377 35,368 — 35,368 Participant’s contributions 34,000 — 34,000 30,551 — 30,551 Benefits paid (188,778 ) — (188,778 ) (172,614 ) — (172,614 ) Actuarial gains/(losses) recorded as other comprehensive income (172,833 ) — (172,833 ) (237,492 ) — (237,492 ) Fair value of the plan’s assets, end of the year 2,567,272 — 2,567,272 2,634,427 — 2,634,427 Total pension plan obligations (deficit) (148,116 ) (2,002,075 ) (2,150,191 ) (129,600 ) (2,192,062 ) (2,321,662 ) Changes in equity - Other comprehensive income Pursuant to IAS 19, the Company recognized gains/(losses), from changes in actuarial assumptions under equity, such as equity valuation adjustments, as shown below: Schedule of (gains)/losses, due to changes in assumptions December 31, 2022 December 31, 2021 December 31, 2020 G1 Plan G0 Plan Total G1 Plan G0 Plan Total G1 Plan G0 Plan Total Actuarial gains/(losses) on obligations 126,626 161,766 288,392 414,823 330,337 745,160 64,637 521,331 585,968 Actuarial gains/(losses) recorded as other comprehensive income (172,833 ) — (172,833 ) (237,492 ) — (237,492 ) (80,059 ) — (80,059 ) Total gains/(losses) (46,207 ) 161,766 115,559 177,331 330,337 507,668 (15,422 ) 521,331 505,909 Deferred income tax and social contribution 15,710 — 15,710 (60,292 ) — (60,292 ) 5,243 — 5,243 Equity valuation adjustments (30,497 ) 161,766 131,269 117,039 330,337 447,376 (10,179 ) 521,331 511,152 The amounts recognized in the year are as follows: Schedule of amounts recognized in income statement December 31, 2022 December 31, 2021 December 31, 2020 G1 Plan G0 Plan Total G1 Plan G0 Plan Total G1 Plan G0 Plan Total Cost of service, net 1,020 — 1,020 2,227 — 2,227 4,608 — 4,608 Interest cost rates 231,745 176,953 408,698 205,707 158,244 363,951 208,485 206,262 414,747 Expected return on the plan’s assets (221,079 ) — (221,079 ) (184,687 ) — (184,687 ) (187,317 ) — (187,317 ) Amount received from State of São Paulo (undisputed) — (98,174 ) (98,174 ) — (91,657 ) (91,657 ) — (95,452 ) (95,452 ) Total expenses 11,686 78,779 90,465 23,247 66,587 89,834 25,776 110,810 136,586 Obligations’ maturity: Obligations’ maturity December 31, 2022 G1 Plan G0 Plan Payment of benefits expected in 2023 213,318 190,425 Payment of benefits expected in 2024 200,740 177,004 Payment of benefits expected in 2025 192,045 167,075 Payment of benefits expected in 2026 182,039 156,583 Payment of benefits expected in 2027 or after 1,927,246 1,310,988 Total 2,715,388 2,002,075 Duration 12.69 10.40 Actuarial assumptions: Actuarial assumptions December 31, 2022 December 31, 2021 December 31, 2020 G1 Plan G0 Plan G1 Plan G0 Plan G1 Plan G0 Plan Discount rate – actual rate (NTN-B) 6.19 6.15 5.53 5.26 3.44 3.07 Inflation rate 5.31 5.31 3.00 3.00 3.25 3.25 Nominal rate of salary growth 7.42 7.42 5.06 5.06 5.32 5.32 Mortality table AT-2000 AT-2000 AT-2000 AT-2000 AT-2000 AT-2000 Sensitivity analysis Sensitivity analysis of the defined benefit pension plan as of December 31, 2022 regarding the changes in the main assumptions are: Sensitivity analysis of the defined benefit pension plan assumptions Impact on the present value of the defined benefit obligations Assumption Change in the assumption G1 G0 Discount rate Increase of 1.0% Decrease of R$ 215,825 Decrease of R$ 159,129 Decrease of 1.0% Increase of R$ 234,447 Increase of R$ 172,859 Life expectation Increase of 1 year Increase of R$ 59,778 Increase of R$ 83,050 Decrease of 1 year Decrease of R$ 58,505 Decrease of R$ 79,449 Wage growth rate Increase of 1.0% Increase of R$ 38,898 Increase of R$ 894 Decrease of 1.0% Decrease of R$ 40,755 Decrease of R$ 937 (i) G1 Plan Managed by Sabesprev, this defined benefit plan (“G1 Plan”), receives similar contributions established in a plan of subsidy of actuarial study of Sabesprev, as follows: · 0.99% of the portion of the salary of participation up to 20 salaries; and · 8.39% of the surplus, if any, of the portion of the salary of participation over 20 salaries. The active participants as of December 31, 2022 totaled 2,843 2,930 8,089 8,109 The contributions of the Company and participants of the G1 Plan in 2022 were R$ 39,377 35,368 34,000 30,551 31,556 26,168 28,829 23,609 Estimated expenses for the coming year Estimated expenses 2023 Cost of services, net 5,997 Regular and extraordinary contributions expected from participants (36,521 ) Interest costs 307,777 Net profitability on financial assets (294,788 ) Expenditures to be recognized by the employer (17,535 ) Plan’s assets The plan’s investment policies and strategies are aim at getting consistent returns and reduce the risks associated to the utilization of financial assets available on the Capital Markets through diversification, considering factors, such as the liquidity needs and the long-term nature of the plan liability, types and availability of financial instruments in the local and international markets, general economic conditions and forecasts as well as requirements under the law. The plan's asset allocation management strategies are determined with the support of reports and analysis prepared by Sabesprev and independent financial advisors: Schedule Of Plans Assets December 31, 2022 % December 31, 2021 % Total fixed income 1,804,550 70.3 1,613,153 61.2 Total equities 136,582 5.3 261,665 9.9 Total structured investments 498,825 19.4 599,970 22.8 Other 127,315 5.0 159,639 6.1 Fair value of the plan’s assets 2,567,272 100 2,634,427 100 Restrictions with respect to asset portfolio investments, in the case of federal government securities: i) instruments securitized by the National Treasury will not be permitted; ii) derivative instruments must be used for hedge. Restrictions with respect to asset portfolio investments, in the case of variable-income securities for internal management, are as follows: i) day-trade operations will not be permitted; ii) sale of uncovered share is prohibited; iii) swap operations without guarantee are prohibited iv) leverage will not be permitted, i.e., operations with derivatives representing leverage of asset or selling short, such operations cannot result in losses higher than invested amounts. As of December 31, 2022, Sabesprev did not have financial assets issued by the Company in its own portfolio; however, said assets could have been part of the investment fund portfolio invested by the Foundation. The real estate held in the portfolio is not used by the Company. On December 21, 2022, SABESP and SABESPREV, mutually agreed to execute an Admission of Debt Instrument, where SABESP recognizes as legitimate, valid, net, certain, and enforceable the debt related to its share of responsibility in the balancing of the deficit of SABESPREV’s Basic Benefits Plan (G1 Plan), collateralizing the Contract for Revenue Binding and Assignment of Credit Transfer, executed between the parties on February 9, 2023. (ii) G0 Plan Pursuant to State Law 4,819/1958, employees who started providing services prior to May 1974 and retired as an employee of the Company acquired a legal right to receive supplemental pension payments, which rights are referred as "G0 Plan ". The Company pays these supplemental benefits on behalf of the State of São Paulo and makes claims for reimbursements from the State Government, which are recorded in the “Accounts receivable from related parties” line, limited to the amounts considered virtually certain that will be reimbursed by the State of São Paulo. The number of active participants of Plan - Go as of December 31, 2022 was 8 8 1,750 1,794 Estimated expenses for 2023 Estimated expenses for 2023 2023 Interest cost rate 225,220 Expense to be recognized 225,220 (iii) Sabesprev Mais Plan As of December 31, 2022, this Defined Contribution Plan administered by Sabesprev had 9,365 9,463 With respect to the Sabesprev Mais plan, the contributions from the sponsor represent 100% over the total basic contribution from the participants. (iv) VIVEST Administered by VIVEST, the sponsor's contributions correspond to the result obtained by applying a percentage of 100% to the basic contribution made by the participant. As of December 31, 2022, there were 58 46 (v) Reconciliation of expenses with pension obligations Reconciliation of expenses with pension obligations December 31, 2022 December 31, 2021 December 31, 2020 G1 Plan (i) 11,686 23,247 25,776 G0 Plan (ii) 78,779 66,587 110,810 Sabesprev Mais Plan (iii) 25,371 22,406 21,700 VIVEST Plan (iv) 326 160 58 Subtotal 116,162 112,400 158,344 Expenses capitalized in assets (3,359 ) (4,118 ) (4,904 ) Other 5,684 5,527 5,841 Pension plan obligations (Note 29) 118,487 113,809 159,281 |
Services payable
Services payable | 12 Months Ended |
Dec. 31, 2022 | |
Services Payable | |
Services payable | 23 Services payable The services account records the balances payable, mainly from services received from third parties, such as supply of electric power, reading of hydrometers and delivery of water and sewage bills, cleaning, surveillance and security services, collection, legal counsel services, audit, marketing and advertising and consulting services, among others. The amounts payable to the municipal governments related to transfers provided for in the concession agreements are also recorded. The balances as of December 31, 2022 and 2021 were R$ 723,242 469,027 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity | |
Equity | 24 Equity (a) Share capital As of December 31, 2022 and 2021, the authorized and fully subscribed and paid-in capital, in the amount of R$ 15,000.000 683,509,869 Share capital December 31, 2022 December 31, 2021 Number of shares % Number of shares % State Department of Finance 343,506,664 50.3 343,506,664 50.3 Other shareholders In Brazil (1) 257,339,417 37.6 234,965,971 34.4 Abroad (2) (3) 82,663,788 12.1 105,037,234 15.3 683,509,869 100.0 683,509,869 100.0 (1) As of December 31, 2022, the common shares traded in Brazil were held by 31,351 shareholders. It includes six shares held by Companhia Paulista de Parcerias (CPP), which is controlled by the São Paulo State Government. (2) Shares traded as American Depositary Receipts (ADR) on the New York Stock Exchange, through The Bank New York Mellon, the depositary bank for the Company's ADRs. (3) Each ADR corresponds to 1 share. (b) Distribution of earnings Shareholders are entitled to a minimum mandatory dividend of 25% of the adjusted net income under Brazilian GAAP, calculated according to the Brazilian corporate law. The dividends do not bear interest and the amounts not claimed within three years from the date of the Shareholders' Meeting that approved them mature in favor of the Company. Distribution of earnings 2022 2021 2020 Profit for the year 3,121,267 2,305,869 973,318 (-) Legal reserve - 5% 156,063 115,293 48,666 2,965,204 2,190,576 924,652 Minimum mandatory dividend – 25% 741,301 547,645 231,163 Dividend per share and per ADS 1.08455 0.80122 0.33820 On April 28, 2022, the Shareholders’ General Meeting approved the distribution of complementary minimum dividends in the amount of R$ 96,700 55,631 The Company proposed dividends as interest on capital ad referendum 741,301 547,645 130,857 96,700 872,158 644,345 1.2760 0.9427 130,857 96,700 53,930 41,069 The Company charged interest on capital to minimum dividends by its net withholding income tax. The amount of R$ 53,930 41,069 The balance payable of interest on capital as of December 31, 2021 of R$ 741,725 548,006 741,301 547,645 424 361 (c) Legal reserve Earnings reserve - legal reserve: created by allocating 5% of the net income for the year up to the limit of 20% of the share capital. The Company may not create the legal reserve in the year in which the balance of this reserve, plus the amount of the capital reserves, exceeds 30% of the share capital. The purpose of the legal reserve is to ensure the integrity of the share capital. It can only be used to offset losses or increase capital, but not to pay dividends (d) Investments reserve Earnings reserve - investments reserve is specifically formed by the portion corresponding to own funds assigned to the expansion of the water supply and sewage treatment systems, based on capital budget approved by the Management. As of December 31, 2022 and 2021, the balance of investment reserve totaled R$ 10,390,535 8,297,489 Pursuant to paragraph four of article 49 of the by-laws, the Board of Directors may propose to the Shareholders’ Meeting that the remaining balance of profit for the year, after deducting the legal reserve and minimum mandatory dividends, be allocated to an investment reserve that will comply with the following criteria: I- its balance, jointly with the balance of the other earnings reserves, except for reserves for contingencies and realizable profits, may not exceed the capital stock; and II- the reserve is intended to guarantee the investment plan and its balance may be used: a) to absorb losses, whenever necessary; b) to distribute dividends, at any moment; c) in share redemption, reimbursement or purchase transactions authorized by law; d) in incorporation of the capital stock. (e) Allocation of the profit for the year Allocation of the profit for the year 2022 2021 2020 Profit (+) Profit for the year 3,121,267 2,305,869 973,318 (-) Legal reserve – 5% 156,063 115,293 48,666 (-) Minimum mandatory dividends 741,301 547,645 231,163 (-) Complementary minimum dividends 130,857 96,700 40,806 Investment reserve recorded 2,093,046 1,546,231 652,683 Management will send for approval at the Shareholders’ Meeting, a proposal to reallocate retained earnings the amount of R$ 2,093,046 (f) Retained earnings Retained earnings (accumulated losses): the statutory balance of this account is zero as all retained earnings must be distributed or allocated to an earnings reserve. (g) Other comprehensive loss Gains and losses arising from changes in the actuarial assumptions are accounted for as equity valuation adjustments, net of the effects of income tax and social contribution effects. See Note 22, the breakdown of amounts recorded in 2022 and 2021. Other comprehensive loss G1 plan G0 plan Total Balance as of December 31, 2021 212,114 (165,740 ) 46,374 Actuarial gains/(losses) for the year (Note 22) (30,497 ) 161,766 131,269 Balance as of December 31, 2022 181,617 (3,974 ) 177,643 |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Earnings per share | 25 Earnings per share Basic and diluted Basic earnings per share is calculated by dividing the equity attributable to the Company’s owners by the weighted average number of outstanding common shares during the year. The Company does not have potentially dilutive common shares outstanding or debts convertible into common shares. Accordingly, basic and diluted earnings per share are equal. Schedule of earnings per share, basic and diluted 2022 2021 2020 Earnings attributable to Company’s owners 3,121,267 2,305,869 973,318 Weighted average number of common shares issued 683,509,869 683,509,869 683,509,869 Basic and diluted earnings per share (reais per share) 4.57 3.37 1.42 |
Operating segment information
Operating segment information | 12 Months Ended |
Dec. 31, 2022 | |
Operating Segment Information | |
Operating segment information | 26 Operating segment information Management, comprised of the Board of Directors and Board of Executive Officers, has determined the operating segment used to make strategic decisions, as sanitation services. Result Schedule of operating segment information 2022 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 18,629,959 4,863,752 23,493,711 Gross sales deductions (1,437,991 ) — (1,437,991 ) Net operating revenue 17,191,968 4,863,752 22,055,720 Costs, selling, general and administrative expenses (12,689,051 ) (4,754,383 ) (17,443,434 ) Income from operations before other operating expenses, net and equity accounting 4,502,917 109,369 4,612,286 Other operating income / (expenses), net 8,327 Equity accounting 24,551 Financial result, net (372,414 ) Income from operations before taxes 4,272,750 Depreciation and amortization (2,450,849 ) — (2,450,849 ) Result 2021 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 16,304,206 4,376,739 20,680,945 Gross sales deductions (1,189,884 ) — (1,189,884 ) Net operating revenue 15,114,322 4,376,739 19,491,061 Costs, selling, general and administrative expenses (11,115,383 ) (4,278,337 ) (15,393,720 ) Income from operations before other operating expenses, net and equity accounting 3,998,939 98,402 4,097,341 Other operating income / (expenses), net (21,841 ) Equity accounting 22,079 Financial result, net (927,423 ) Income from operations before taxes 3,170,156 Depreciation and amortization (2,253,322 ) — (2,253,322 ) (i) See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information; (ii) Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 14 (b). Result 2020 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 15,157,780 3,716,616 18,874,396 Gross sales deductions (1,076,855 ) — (1,076,855 ) Net operating revenue 14,080,925 3,716,616 17,797,541 Costs, selling, general and administrative expenses (9,796,821 ) (3,630,139 ) (13,426,960 ) Income from operations before other operating expenses, net and equity accounting 4,284,104 86,477 4,370,581 Other operating income / (expenses), net 107,656 Equity accounting 14,136 Financial result, net (3,166,371 ) Income from operations before taxes 1,326,002 Depreciation and amortization (2,037,112 ) — (2,037,112 ) (i) See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information; (ii) Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 14 (b). |
Insurance
Insurance | 12 Months Ended |
Dec. 31, 2022 | |
Insurance | |
Insurance | 27 Insurance The Company has insurance that covers, among others, fire and other damage to its assets and office buildings, and third parties. It also has civil liability insurance for the members of the Board of Directors and Board of Executive Officers (“D&O insurance”) and guarantee insurance for escrow deposit (as described in Note 20 (f)) and traditional guarantee insurance. . The risk assumptions adopted, given their nature, are not within the scope of a financial statement audit, and consequently have not been examined by our independent auditors . As of December 31, 2022, the Company’s insurance was as follows: The Company insurance was as follows Coverage Specified risks – fire 2,185,827 Engineering risk 2,275,490 Guarantee insurance for escrow deposit and traditional guarantee (*) 600,000 Civil liability– D&O (Directors and Officers) 100,000 Civil liability – works 149,630 Civil liability – operations 15,000 Other 29,038 Total 5,354,985 (*) SABESP has an agreement that allows issuing policies that total such insured amount. Of the total, R$ 167.8 thousand in policies with guarantee insurance were issued. |
Operating revenue
Operating revenue | 12 Months Ended |
Dec. 31, 2022 | |
Operating Revenue | |
Operating revenue | 28 Operating revenue (a) Revenue from sanitation services: Revenue from sanitation services 2022 2021 2020 Metropolitan Region of São Paulo 13,318,803 11,529,229 10,722,384 Regional Systems 5,311,156 4,774,977 4,435,396 Total 18,629,959 16,304,206 15,157,780 (b) Reconciliation from gross operating income to net operating income: Reconciliation from gross operating income to net operating income 2022 2021 2020 Revenue from sanitation services (i) 18,629,959 16,304,206 15,157,780 Construction revenue 4,863,752 4,376,739 3,716,616 Sales tax (1,363,628 ) (1,121,905 ) (1,009,358 ) Regulatory, Control and Oversight Fee (TRCF) (74,363 ) (67,979 ) (67,497 ) Net revenue 22,055,720 19,491,061 17,797,541 (i) Includes the amount of R$ 92,232 80,329 |
Operating costs and expenses
Operating costs and expenses | 12 Months Ended |
Dec. 31, 2022 | |
Operating Costs And Expenses | |
Operating costs and expenses | 29 Operating costs and expenses Schedule of operating costs and expenses 2022 2021 2020 Operating costs Salaries, payroll charges and benefits (2,285,765 ) (2,026,202 ) (1,958,395 ) Pension plan obligations (29,796 ) (36,771 ) (37,281 ) Construction costs (Note 26) (4,754,383 ) (4,278,337 ) (3,630,139 ) General supplies (369,381 ) (314,111 ) (244,054 ) Treatment supplies (598,993 ) (364,542 ) (338,756 ) Outsourced services (1,724,347 ) (1,517,196 ) (1,251,839 ) Electricity (1,497,644 ) (1,462,776 ) (1,214,831 ) General expenses (831,503 ) (717,352 ) (622,113 ) Depreciation and amortization (2,259,091 ) (2,082,755 ) (1,882,259 ) (14,350,903 ) (12,800,042 ) (11,179,667 ) Selling expenses Salaries, payroll charges and benefits (306,864 ) (265,435 ) (271,565 ) Pension plan obligations (4,021 ) (4,868 ) (5,059 ) General supplies (7,121 ) (7,976 ) (5,471 ) Outsourced services (418,632 ) (343,763 ) (290,512 ) Electricity (1,001 ) (1,340 ) (1,200 ) General expenses (107,313 ) (136,107 ) (118,278 ) Depreciation and amortization (67,015 ) (66,390 ) (59,201 ) (911,967 ) (825,879 ) (751,286 ) Bad debt expense, net of recoveries (Note 10 (c)) (782,057 ) (643,730 ) (444,826 ) Administrative expenses Salaries, payroll charges and benefits (284,562 ) (250,557 ) (257,829 ) Pension plan obligations (84,670 ) (72,170 ) (116,941 ) General supplies (23,664 ) (11,209 ) (14,237 ) Outsourced services (250,293 ) (250,801 ) (230,054 ) Electricity (1,896 ) (1,715 ) (1,359 ) General expenses (548,626 ) (357,564 ) (257,693 ) Depreciation and amortization (124,743 ) (104,177 ) (95,652 ) Tax expenses (80,053 ) (75,876 ) (77,416 ) (1,398,507 ) (1,124,069 ) (1,051,181 ) Operating costs and expenses Salaries, payroll charges and benefits (2,877,191 ) (2,542,194 ) (2,487,789 ) Pension obligations (118,487 ) (113,809 ) (159,281 ) Construction costs (Note 26) (4,754,383 ) (4,278,337 ) (3,630,139 ) General supplies (400,166 ) (333,296 ) (263,762 ) Treatment supplies (598,993 ) (364,542 ) (338,756 ) Outsourced services (2,393,272 ) (2,111,760 ) (1,772,405 ) Electricity (1,500,541 ) (1,465,831 ) (1,217,390 ) General expenses (1,487,442 ) (1,211,023 ) (998,084 ) Depreciation and amortization (2,450,849 ) (2,253,322 ) (2,037,112 ) Tax expenses (80,053 ) (75,876 ) (77,416 ) Bad debt expense, net of recoveries (Note 10 (c)) (782,057 ) (643,730 ) (444,826 ) (17,443,434 ) (15,393,720 ) (13,426,960 ) |
Financial Income (Expenses)
Financial Income (Expenses) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Income | |
Financial Income (Expenses) | 30 Financial Income (Expenses) Schedule of financial income (expenses) 2022 2021 2020 Financial expenses Interest and charges on borrowings and financing – local currency (954,744 ) (517,235 ) (348,050 ) Interest and charges on borrowings and financing – foreign currency (47,139 ) (46,793 ) (136,257 ) Other financial expenses (364,117 ) (315,013 ) (328,413 ) Income tax over international remittance — — (15,134 ) Inflation adjustment on borrowings and financing (190,202 ) (225,791 ) (86,938 ) Other inflation adjustments (183,966 ) (172,632 ) (142,313 ) Interest and inflation adjustments on provisions (216,098 ) (170,831 ) (267,654 ) Total financial expenses (1,956,266 ) (1,448,295 ) (1,324,759 ) Financial income Inflation adjustment gains 541,516 198,907 120,957 Income on financial investments 417,129 150,632 75,522 Interest income 195,274 145,866 162,576 Cofins and Pasep (62,405 ) (23,038 ) (22,328 ) Other 17 41 4 Total financial income 1,091,531 472,408 336,731 Financial income (expenses), net before exchange rate changes (864,735 ) (975,887 ) (988,028 ) Exchange gains (losses) Exchange rate changes on borrowings and financing 491,918 48,522 (2,180,241 ) Exchange rate changes on assets 301 (36 ) 1,894 Other exchange rate changes 102 (22 ) 4 Exchange rate changes, net 492,321 48,464 (2,178,343 ) Financial income (expenses), net (372,414 ) (927,423 ) (3,166,371 ) |
Other operating income (expense
Other operating income (expenses), net | 12 Months Ended |
Dec. 31, 2022 | |
Other Operating Income Expenses Net | |
Other operating income (expenses), net | 31 Other operating income (expenses), net Schedule of other operating income (expenses), net 2022 2021 2020 Other operating income, net 64,638 71,877 70,288 Other operating expenses (56,311 ) (93,718 ) 37,368 Other operating income (expenses), net 8,327 (21,841 ) 107,656 Other operating income includes revenue from the sale of property, plant and equipment, sale of contracts awarded in public bids, right to sell electricity, indemnities and reimbursement of expenses, fines and guarantees, property leases, reuse water, PURA projects and services, net of Cofins and Pasep. Other operating expenses usually record the derecognition of concessions assets due to obsolescence, discontinued construction works, unproductive wells, projects considered economically unfeasible, losses on property, plant and equipment, estimated losses and operational assets indemnification. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments | |
Commitments | 32 Commitments The Company has agreements to manage and maintain its activities, as well as to build new projects aiming at achieving the objectives proposed in its target plan. Below, the main unrecorded committed amounts as of December 31, 2020: Below, the main unrecorded committed amounts as of December 31, 2020: 1 year 1-3 years 3-5 years More than 5 years Total Contractual obligations – Expenses 1,476,267 1,379,448 271,242 657,401 3,784,358 Contractual obligations – Investments 3,091,768 3,125,523 1,153,532 172,782 7,543,605 Total 4,568,035 4,504,971 1,424,774 830,183 11,327,963 |
Supplemental cash flow informat
Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information | |
Supplemental cash flow information | 33 Supplemental cash flow information Schedule of supplemental cash flow information 2022 2021 2020 Total additions to contract assets (Note 14) 5,240,528 4,759,789 3,948,158 Total additions to intangible assets (Note 15 (b)) 75,400 172,961 411,285 Items not affecting cash (see breakdown below) (1,765,391 ) (1,236,081 ) (1,095,786 ) Total additions to intangible assets as per statement of cash flows 3,550,537 3,696,669 3,299,657 Investments and financing operations affecting intangible assets but not cash: Interest capitalized in the year (Note 14 (a)) 622,803 300,792 238,330 Contractors payable 414,645 218,523 142,514 Program contract commitments — — 4,422 Performance agreements 576,392 478,177 314,720 Right of use 42,182 140,187 28,549 Construction margin (Note 26) 109,369 98,402 85,976 Agreement with the municipality of Mauá — — 280,774 Total 1,765,391 1,236,081 1,095,786 |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2022 | |
Events After Reporting Period | |
Events after the reporting period | 34 Events after the reporting period ● Replacement of the CEO On January 12, 2023, the Board of Directors elected Mr. André Gustavo Salcedo Teixeira Mendes as CEO of the Company, replacing Mr. Benedito Pinto Ferreira Braga Junior. Additionally, under paragraph 2 of article 8 and article 12 of the Bylaws, Mr. André Gustavo Salcedo Teixeira Mendes will be part of the Board of Directors as long as he holds office as CEO. ● Election of new Executive Board members At a meeting held on January 30, 2023, the new members elected for the Executive Board were: (i) Mr. Bruno Magalhães D’Abadia, as Technology, Project, and Environment Officer, to replace Mr. Alceu Segamarchi Junior; (ii) Mr. Roberval Tavares de Souza, as Regional Systems Officer, to replace Mr. Antônio Carlos Teixeira; (iii) Ms. Paula Alessandra Bonin Costa Violante, as Metropolitan Officer, to replace Mr. Ricardo Daruiz Borsari. Furthermore, on February 9, 2023, the Board of Directors elected new members for the Executive Board: (i) Ms. Catia Cristina Teixeira Pereira, as Chief Economic, Financial, and Investor Relations Officer, as of March 1, 2023; (ii) Ms. Sabrina de Menezes Correa Furstenau Sabino, as Chief Corporate Management Officer. Finally, further to the Material Fact disclosed on January 30, 2023, the Company informs that the Board of Directors rectified the resolution regarding the positions to be held on the Executive Board on that date, whereby the Executive Officers elected at that meeting will now be responsible for the following Offices: ● Mr. Bruno Magalhães D’Abadia, Regional Systems Board ● Mr. Roberval Tavares de Souza, Metropolitan Board ● Ms. Paula Alessandra Bonin Costa Violante, Technology, Project, and Environment Board ● Amendment to the Extraordinary Tariff Revision On February 16, 2023, the São Paulo State Utility Services Regulatory Agency (ARSESP) approved an amended schedule of the Extraordinary Tariff Revision, as follows: Schedule of extraordinary tariff revision Stages Date Publication of the Preliminary Technical Note of SABESP’s Extraordinary Tariff Revision 12/22/2022 Public Consultation 12/22/2022 01/06/2023 Public Hearing 01/05/2023 Publication of the Detailed Report 03/06/2023 Publication of the Final Technical Note and Resolution of SABESP’s Extraordinary Tariff Revision Until 04/08/2023 ● Extraordinary Tariff Revision Result and Annual Tariff Readjustment On April 6, 2023, in continuity to the Material Facts released on December 21, 2022 and February 16, 2023, SABESP informed its shareholders and the market in general that, the São Paulo State Utility Services Regulatory Agency (ARSESP) released Resolution nº 1,394/2023 related to the Extraordinary Tariff Revision and the Resolution nº 1,395/2023, which presents the new tariff values, authorizing the Company to apply a total tariff readjustment of 9.5609% to its current tariffs, result of the following composition: Inflation Index (February/2022 to February/2023) of 5.5964%; Efficiency factor (X factor) of 0.2142%; General Quality Index (GQI 2023) of 0.1280% to be discounted; Result of the Extraodinary Tariff Revision of 5.5532%; Compensatory Adjustment (referring to FY2021) of 1.4040% to be discounted. ● Contract with International Finance Corporation – IFC On April 7, 2023, SABESP informed its shareholders and the market in general, the ratification of the unenforceability of the bidding process for hiring specialized technical services to provide support and consultancy to the State in carrying out studies on SABESP's Privatization was published in the Official Gazette of the State of São Paulo. In this regard, the contract with International Finance Corporation – IFC was signed on April 10, 2023. IFC is an agency linked to the World Bank, which will act as the advisor in this process. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies | |
Cash and cash equivalents | 3.1 Cash and cash equivalents Cash and cash equivalents include cash in hand, bank deposits, overdraft accounts and other short-term highly liquid investments with maturities and intention of use by the Company’s Management in a period lower than three months. |
Financial assets and liabilities | 3.2 Financial assets and liabilities Financial Asset - Classification The Company classified its financial assets according to the following categories: measured at amortized cost, measured at fair value through other comprehensive income and measured at fair value through profit or loss. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at inception. As of December 31, 2022 and 2021, the Company did not have financial assets classified as fair value through other comprehensive income and fair value through profit or loss. · Amortized cost This comprises financial assets that meet the following conditions: (i) it is held within the business model whose objective is to hold financial assets to collect contractual cash flows; and (ii) the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Presented as current assets, except for those with maturity of more than 12 months after the reporting date (these are classified as noncurrent assets). The Company's financial assets measured at amortized cost include cash and cash equivalents, financial investments, restricted cash, accounts receivable from related parties, accounts receivable from related parties, other receivables, receivables from the Water and Basic Sanitation National Agency – ANA. Financial assets measured at amortized cost are recorded at fair value and subsequently at amortized cost, under the effective interest rate method, except for trade receivables, which is initially measured at transaction price, as it contains no financing items, and is subsequently measured at amortized cost. Financial Liabilities - Classification The Company classifies its financial liabilities measured at amortized cost. Classification depends on the purpose to which the financial liabilities were assumed. This category comprises balances payable to contractors and suppliers, borrowings and financing, services payable, balances payable from public-private partnership (PPP), and program contract commitments. The effective interest rate method is adopted to calculate the amortized cost of a financial liability and allocate its interest expense under the respective period. The effective interest rate exactly deducts the estimated future cash flows (including fees, transaction costs and other issue costs) throughout the financial liability’s estimated life or, when appropriate, during a shorter period, for initial recognition of the net carrying amount. Impairment of financial assets · Trade receivables Due to the charactheristics of the Company’s accounts receivable such as (i) insignificant financial component, (ii) non-complex receivables portfolio, and (iii) low credit risk, the Company adopted the simplified approach of expected credit loss, which consists in recognizing the expected credit loss based on the total asset’s useful life. The methodology to calculate the allowance for doubtful accounts consisted of using an estimate calculated based on the average default observed in the last 36 months, per maturity range, in addition to estimating the recovery of credits overdue for more than 360 days, based on the track record of the last three years. For estimate purposes, it also considered the category of private and public customers, and segregated accounts receivable among the regular consumption accounts and agreements. The Company also concluded that the estimates of the macroeconomic indicators Gross Domestic Product (GDP), Unemployment Rate and the Extended Consumer Price Index (IPCA) were not impacted, given that it carried out correlation analyses of these indicators and its default history, which did not result in significant correlation between them. · Deposit transactions and financial investments measured at amortized cost The Company analyzes changes in the rates of investments in bank deposits certificates and information obtained from regulatory agencies about the financial institutions. The likelihood of delinquency over 12 months and during the terms of these investments was based on historical data provided by credit rating agencies for each credit level and analyzed in terms of sensitivity based on current returns. These deposits and financial investments are subject to an insignificant risk of change in value. |
Operating income | 3.3 Operating income (a) Revenue from sanitation services Revenue from water supply and sanitation services are recognized as the water is consumed and services are provided. Revenues, including unbilled revenues, are recognized at the fair value of the consideration received or receivable for the rendering of those services. Revenue is shown net of value-added tax, rebates and discounts. Unbilled revenues represent incurred revenues in which the services were provided, but not yet billed until the end of the each period and are recorded as trade receivables based on monthly estimates of the completed services. Revenues are recognized based on IFRS 15 (Revenue from Contracts with Customers), which establishes a five-step model applicable over revenue from a contract with a customer. Revenues are recognized when the Company: i) it identifies the contracts with customers; ii) it identifies the different obligations in the contract; iii) it determines the transaction price; iv) it allocates the transaction price to the performance obligations in the contracts; and (v) it satisfies all performance obligations. Disputed amounts are recognized as revenue when collected. (b) Construction revenue Revenue from concession construction contracts is recognized in accordance with IFRS 15 (Revenue from Contracts with Customers) and IFRIC 12 (Service Concession Arrengements), as all performance obligations are satisfied over time. During the construction phase of the contract, an asset is classified as contract assets, as the Company estimates that the fair value of its consideration is equivalent to expected construction costs plus margin. The fee represents the additional margin related to the work performed by the Company in relation to such construction contracts and it is added to construction costs, resulting in the construction revenue. |
Trade receivables and allowance for doubtful accounts | 3.4 Trade receivables and allowance for doubtful accounts Trade receivables are amounts due from customers for services performed in the ordinary course of business. These are classified as current assets, except when maturity exceeds 12 months after the end of the reporting period. In these cases, they are presented as noncurrent assets. The Company establishes an allowance for doubtful accounts for receivable balances at an amount that Management considers to be sufficient to cover eventual losses, as described in Note 3.2. |
Inventories | 3.5 Inventories Inventories comprise supplies for consumption and maintenance of the water and sewage systems are stated at the lower between the average cost of acquisition or net realizable value, and are classified in current assets. |
Investment properties | 3.6 Investment properties Investment properties are recorded at the acquisition or construction cost, less accumulated depreciation, except for the land group, calculated by the straight-line method at rates that consider the estimated useful life of the assets. Expenditures related to repairs and maintenance are recorded in the income statement when incurred. The Company also maintains some assets for undetermined use in the future, i.e. it is not defined if the Company will use these assets in the operation or sell them in the short term during the ordinary course of business. |
Contract asset | 3.7 Contract asset The Contract Asset (works in progress) is the right to consideration in exchange for goods or services transferred to the customers. As determined by IFRS 15 - Revenue from contract with customer, assets related to the concession under construction, recorded under the scope of IFRIC 12 – Service Concession Arrengements, should be classified as contract asset during the construction period and transferred to the intangible assets only after the completion of the works. A Contract Asset is recognized at fair value, including the capitalization of labor, construction margin, interest, and other financial charges capitalized during the construction period of qualifying assets, where applicable, based on the weighted average rate of borrowings in effect on the capitalization date. A qualifying asset necessarily requires a substantial period, established by the Company as being higher than 12 months, to be ready for use, considering the completion period of the works, given that most of them take on average more than 12 months to be completed, which corresponds to one fiscal year of the Company. The infrastructure construction values are recognized as revenue, at fair value, provided that they generate future economic benefits. The accounting policy to recognize construction revenue is described in Note 3.3 (b). |
Property, plant and equipment | 3.8 Property, plant and equipment Property, plant and equipment comprise mainly administrative facilities not composing the assets subject to the concession agreements. Those assets are stated at acquisition or construction cost less depreciation and impairment losses, as applicable. Where applicable, interest, other finance charges, and inflationary effects resulting from financing effectively applied to construction in progress are recorded as the cost of the respective property, plant and equipment for the qualifying assets. A qualifying asset necessarily requires a substantial period, established by the Company as being higher than 12 months, to be ready for use, considering the completion period of the works, given that most of them take on average more than 12 months to be completed, which corresponds to one fiscal year of the Company. Subsequent costs included in the existing asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that the future economic benefit associated with the item will flow to the Company and the cost of the item can be reliably measured. Repairs and maintenance are charged to the income statement of the year, as incurred. The depreciation of property, plant, and equipment begins when such an item becomes available for use, in its location, and under the necessary condition, when this asset becomes operational. Depreciation is calculated using the straight-line method and the average rates are presented in Note 16 (a). Land is not depreciated. The useful lives of assets are revised and adjusted, where applicable, at the end of each year. Gain and losses on disposals are determined by the difference between the proceeds with the carrying amount and are recognized in other operating income (expenses) in the income statement. |
Intangible assets | 3.9 Intangible assets Intangible assets are those arising from concession contracts, and the main costs are transferred from the Contract Asset, as described in Note 3.7. The intangible has its amortization initiated when the intangible assets are available for use in the location and necessary condition when this asset becomes operational. The amortization reflects the period in which it is expected that the asset’s future economic benefits are consumed by the Company, which may be the final term of the concession or their useful life. The amortization of the intangible assets ends when the asset is fully consumed or it is disposed of, whatever occurs first. Donations in assets, received from third parties and governmental entities, to allow the Company to render water supply and sewage services are recorded in the Company’s financial statements at zero cost, since these assets are controlled by the concession grantor. Financial resources received as donations for the construction of infrastructure are recorded under “Other operating income”. (a) Concession agreements/program contracts/service contracts The Company operates concession agreements including the rendering of basic sanitation, environmental, water supply and sewage services signed with the granting authorities. The infrastructure used by SABESP subject to service concession arrangements is considered to be controlled by the concession grantor when: (i) The granting authority controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them, and at what price; and (ii) The granting authority controls the infrastructure, i.e., retains the right to take back the infrastructure at the end of the concession. The rights over the infrastructure operated under the concession agreements are accounted for as an intangible asset as the Company has the right to charge for the use of the infrastructure assets, and the users (consumers) must pay SABESP for the services. Intangible assets related to the concessions, are amortized on a straight-line basis over the period of the contract, or the useful life of the underlying asset, whichever occurs first. The details referring to amortization of intangible assets are described in Note 15 (c). (b) Software license of use Software licensing is capitalized based on the acquisition costs and other implementation costs. Amortizations are recorded according to the useful life and the expenses associated with maintaining them are recognized in profit or loss when incurred. |
Impairment of non-financial assets | 3.10 Impairment of non-financial assets Property, plant and equipment, intangible assets and other noncurrent assets with defined useful lives, are yearly reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company does not have assets with indefinite useful life and assessed that there are no indications of impairment losses, mainly supported by Law 14,026/2020, which ensures that basic sanitation public utilities will have assured its economic and financial sustainability to public sanitation services through tariffs or indemnity. |
Trade payables and contractors | 3.11 Trade payables and contractors Trade payables and contractors are obligations to pay for goods or services acquired from suppliers in the ordinary course of business and are initially measured at fair value, which generally correspond to the bill and subsequently at amortized cost, being classified as current liabilities, except when the maturity exceeds 12 months after the reporting date and are, otherwise, being presented as noncurrent liabilities. |
Borrowings and financing | 3.12 Borrowings and financing Borrowings and financing are initially recognized at fair value, upon receipt of funds, net of transaction costs. Subsequently, borrowings and financing are stated at amortized cost, as presented in Note 17. Borrowings and financing are classified as current liabilities unless the Company has an unconditional right to defer the settlement of the liability for at least 12 months after the end of the reporting date. The bonds issued by the Company are not convertible into shares and are recorded similarly to borrowings. |
Borrowing costs | 3.13 Borrowing costs Borrowing costs consist of interest rates and other charges incurred by the Company and arise from borrowing and financing agreements, including exchange variation. Costs attributable to the acquisition, construction, or production of an asset, which, necessarily, requires a substantial time to be ready for use or sale are capitalized as part of the cost of these assets. Other borrowing costs are recognized as expenses in the period they are incurred. The capitalization occurs during the construction period of the asset, considering the weighted average rate of borrowings effective on the capitalization date. The Company analyses foreign currency-denominated borrowings or financing as if they were contracted in local currency, restricting the capitalization of interest and/or exchange variation by the amount that would be capitalized if they were contracted in the domestic market in similar lines of credit and loans. |
Salaries, payroll charges and contributions | 3.14 Salaries, payroll charges and contributions Salaries, vacations, Christmas bonuses, profit sharing and additional payments negotiated in collective labor agreements plus related charges and contributions are recorded on the accrual basis. The profit sharing plan for its employees is based on operational and financial targets, and a provision is created when it is contractually required or when there is a past practice that created a constructive obligation, and is recorded on the accrual basis period as operating cost, selling and administrative expenses or capitalized in assets. |
Provisions, legal obligations, escrow deposits and contingent assets | 3.15 Provisions, legal obligations, escrow deposits and contingent assets Provisions related to claims are recognized when: i) the Company has a present (legal or constructive) obligation resulting from a past event; ii) it is probable that an outflow of resources that comprise economic benefits will be required to settle the obligation; and iii) the amount can be reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow of resources will be required to settle an obligation is determined by considering the nature of the obligations as a whole. Provisions are measured at the present value of the disbursements expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as financial expense. For financial statement presentation purposes, the provision is stated net of escrow deposits, based on the legal offset right. Escrow deposits not linked to the related obligations are recorded in noncurrent assets and adjusted by the indexes defined by the competent authorities. The Company does not recognize contingent liabilities in the financial statements since it either does not expect outflows to be required or the amount of the obligation cannot be reliably measured. Contingent assets are not recognized in the statements of financial position. |
Environmental costs | 3.16 Environmental costs Costs related to ongoing environmental programs are expensed in the income statement, when there is a taxable event. Ongoing programs are designed to minimize the environmental impact of the operations and to manage the environmental risks inherent to the Company's activities. |
Income taxes – current and deferred | 3.17 Income taxes – current and deferred Income taxes expenses comprise current and deferred income tax and social contributions. Current taxes The provision for income tax and social contribution is calculated based on the taxable profit for the year and the rates effective at the end of the year. The income tax was accrued at rate of 15%, plus 10% surtax on taxable income exceeding R$ 240 9 Deferred taxes Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction that at the time of the transaction affects neither accounting nor taxable profit nor loss, except for business combinations. Deferred income tax is determined using tax rates (and laws) effective at the end of the reporting period and are expected to be applied when the related income tax and social contribution are realized. Deferred income tax and social contribution assets are recognized only to the extent that it is probable that future taxable profit will be available for which temporary differences can be utilized and tax losses can be carryforward. Deferred taxes assets and liabilities are offset when there is a legally enforceable right of offsetting current tax assets against current tax liabilities and when deferred income tax assets and liabilities are related to income taxes levied by same tax authority over the tax entity. |
Taxes on revenues | 3.18 Taxes on revenues Revenues from sanitation services are recognized on accrual basis for PASEP (Programa de Formação do Patrimônio do Servidor Público) and Cofins (Contribuição para o Financiamento da Seguridade Social), calculated at the rates of 1.65 7.60 0.65 4.00 The taxes related to PASEP and Cofins incident on amounts invoiced to public entities are due when invoices are received. These taxes are calculated by the non-cumulativeness regime and presented net, as deductions from gross revenues. The lines over “other operating income” and “financial revenues” are presented net of such taxes on the income statement. In addition, revenues from sanitation services are also subject to the Regulatory, Control and Oversight Fee (TRCF - Taxa de Regulação, Controle e Fiscalização), whose taxable event is the performance of regulatory, control and monitoring activities by ARSESP, calculated at 0.50 |
Pension plan obligations | 3.19 Pension plan obligations (a) Defined benefit The Company makes contributions to defined benefit plans on a contractual basis and sponsored thereby. The regular contributions comprise the net administrative expenses and are recognized in the income statement for the period. Liabilities from defined benefit pension plan obligations correspond to the present value of the defined benefit obligation at the end of the reporting period, less the fair value of the plan’s assets. The defined benefit obligation (G1) and (G0) are calculated on an annual basis by independent actuaries, using the projected unit credit method. The estimated future cash outflow is discounted to its present value, using the interest rates of Government bonds with maturities that approximate the maturity of the related liability. Referring to actuarial gains and losses deriving from adjustments based on the experience and changes in actuarial assumptions are directly recorded under equity, as other comprehensive income (OCI), so that the plan's net assets or liabilities are recognized in the statement of financial position in order to reflect the full amount of plan’s deficit or surplus. In an event where a curtailment relates to only some of the employees covered by a plan, or where only part of an obligation is settled, the gain or loss includes a proportionate share of the past service cost and actuarial gains and losses. The proportionate share is determined on the basis of the present value of the obligations before and after the curtailment or settlement. (b) Defined contribution The Company makes contributions to defined contribution plans on a contractual basis and sponsored thereby, a supplementary private pension entity that provides post-employment benefits to its employees, in which the Company makes fixed and equal contributions to employees, within the limits set by regulation. In this model, the benefits paid are directly related to the amount contributed, with no deficits to be covered by the Company. |
Financial revenues and expenses | 3.20 Financial revenues and expenses Financial revenue is primarily comprised of interest and inflation adjustments resulting from financial investments, escrow deposits and negotiations with customer to pay by installments, calculated using the effective interest rate method. Financial expenses are primarily comprised of interest, inflation adjustments and exchange rate changes on borrowings and financing, provisions, public-private partnership and program contract commitments. These financial income and expenses are calculated using the effective interest rate method. Inflation adjustments and exchange gains and losses derive from the collection or payment to third parties, as contractually required by law or court decision, and recognized on an accrual basis pro rata temporis. Inflation adjustments included in the agreements are not considered embedded derivatives, since they are deemed as inflation adjustment rates for the Company’s economic scenario. |
Leases | 3.21 Leases Leases are recognized at the present value of the contractual obligations, presented in assets as Right of Use (Note 15 (f)) and in liabilities as Leases (Note 17 (b)), except for short-term contracts (12 months or less) and/or low value (below US$ 5 thousand – R$ 26 thousand), which are recorded in the income statement recognized as an expense when incurred. |
Other current and noncurrent assets and liabilities | 3.22 Other current and noncurrent assets and liabilities Other assets are stated at acquisition cost, net of any impairment loss, where applicable. The amounts recognized as other liabilities are stated at known or estimated amounts, including, where applicable, related charges and inflation adjustments. |
Dividends and interest on capital | 3.23 Dividends and interest on capital The Company uses the tax benefits of distributing dividends as interest on capital, as permitted by Brazilian Law and based on the Bylaws. This distribution of dividend is accounted for in accordance with Brazilian Law 9,249/95 for tax deductibility purposes, limited to the daily pro rata fluctuation of the Long-term Interest Rate (TJLP). The benefit attributed to the shareholders is recognized in the current liability against Equity, based on its by-laws. Dividends and interest on capital over the minimum established in the by-laws are recognized when approved by the shareholders in the shareholders’ meeting, except for taxes incurring in the distribution of interest on capital. The tax benefit of the interest on capital is accrued in the income statement of the year, under the same recognition basis of expenses with interest on capital. |
Present value adjustment | 3.24 Present value adjustment Current and noncurrent financial assets and liabilities arising from long- or short-term transactions are adjusted to present value based on market discount rates as of the transaction date, when the effects are significant. |
Segment information | 3.25 Segment information Operating segments are determined in a manner consistent with the internal reporting to the Company’s chief operating decision maker (“CODM”), which, in the case of SABESP, is comprised of the Board of Directors and Board of Executive Officers, to make strategic decisions, allocate resources and evaluate performance. The Company determined that it has one operating segment which is sanitation services. The accounting policies used to determine segment information are the same as those used to prepare the Company’s financial statements. The measurement of the result per segment is the profit from operations before other net operating expenses and equity accounting, which excludes construction costs and revenue. The CODM analyzes asset and liabilitity information on a consolidated basis. Consequently, the Company does not disclose segment information on assets and liabilities. Substantially all noncurrent assets and revenue generated from customers are located in the São Paulo State. Consequently, financial information is not disclosed by geographic area. |
Translation into foreign currency | 3.26 Translation into foreign currency (a) Functional and reporting currency Items included in the financial statements are measured using the currency of the primary economic environment in which the company operates ("the functional currency"). The financial statements are presented in Brazilian reais (R$), which is also the Company's functional currency. All financial information has been stated in reais and rounded to the next thousand, except where otherwise indicated. (b) Foreign currency translation Foreign currency-denominated transactions are translated into Brazilian reais using the exchange rates prevailing at the transaction dates. Statement of financial position accounts are translated by the exchange rate prevailing at reporting date. Exchange gains and losses resulting from the settlement of these transactions and the translation of foreign currency-denominated cash assets and liabilities are recognized in the income statement, except for borrowings and financing referring to property, plant and equipment or intangible assets in progress, where exchange losses are recognized as corresponding entry to the asset while construction is in progress, as described in Note 3.13. |
Operations (Tables)
Operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operations | |
The table below shows a summary of the contractual situation of the municipalities served | The table below shows a summary of the contractual situation of the municipalities served December 31, 2022 December 31, 2021 Total municipalities that have already signed contracts 351 342 Balance – intangible and contract assets 45,292,307 42,260,091 Percentage of intangible and contract assets 94.49% 93.80% Revenue from sanitation services (excluding construction revenue) 17,767,561 15,490,808 Percentage of revenue from sanitation services (excluding construction revenue) 95.37% 95.01% Municipalities with expired contracts: 1 8 Balance – intangible and contract assets 11,519 214,329 Percentage of intangible and contract assets 0.02% 0.48% Revenue from sanitation services (excluding construction revenue) 15,236 41,194 Percentage of revenue from sanitation services (excluding construction revenue) 0.08% 0.25% Municipalities with concession agreements due by 2030: 23 25 Balance – intangible and contract assets 1,072,138 1,127,920 Percentage of intangible and contract assets 2.24% 2.50% Revenue from sanitation services (excluding construction revenue) 711,452 653,408 Percentage of revenue from sanitation services (excluding construction revenue) 3.82% 4.01% Municipality of São Paulo: Percentage of intangible and contract assets 43.33% 43.11% Percentage of revenue from sanitation services (excluding construction revenue) 45.14% 44.45% |
Changes in accounting practic_2
Changes in accounting practices and disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Changes In Accounting Practices And Disclosures | |
Recognized financial statements | Recognized financial statements Standard Description Impact IFRS 17 – Insurance Contracts 2 Establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. The Company does not expect effects from adopting this standard. Amendments to IFRS 10 - Consolidated Statements and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 3 Clarify situations that involve the sale or contribution of assets between an investor and its associate or joint venture. The Company is assessing the impacts and effects of the amendments; however, it does not expect any effects from the amendments. Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current 2 These amendments to IAS 1 only affect the presentation of liabilities as current or non-current in the statement of financial position and not the amount or the time of recognition of any asset, liability, income or expense, or the information disclosed on such items. In addition, clarify that the classification of liabilities as current or non-current is based on the rights existing at the balance sheet date, specify that the classification is not affected by the expectations on whether an entity will exercise its right to postpone the settlement of the liability and introduce the definition of 'settlement' to clarify that settlement refers to the transfer to a counterparty, of cash, equity instruments, other assets or services. The Company does not expect any impacts from this standard. Amendments to IAS 1 – Presentation of Financial Statements 1 3 The amendments modify the requirements contained in IAS 1 regarding the disclosure of accounting policies. The amendments replace all the examples of the term “significant accounting policies” with “information of material accounting policies”. Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, could reasonably influence decisions that the main users make based on the financial statements. The supporting paragraphs have also been amended to clarify that accounting policy information related to transactions, other events, or conditions that are not material is, therefore, irrelevant and does not need to be disclosed. The Company does not expect any impacts from these changes. Amendments to IAS 8 - Accounting Policies, Changes in Estimates, and Errors—Definition of Accounting Estimates 1 The amendment supersede the definition of changes in the accounting estimates with the definition of accounting estimates. According to the new definition, accounting estimates are “monetary amounts in the financial statements subject to measure uncertainty”. The Company does not expect effects from these amendments. Amendments to IAS 12 – Income Taxes – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (“single transaction”) 1 The amendments introduce an additional exception to the exemption of first-time recognition. According to the amendments, an entity does not apply the exemption of first-time recognition for transactions resulting in equal taxable and deductible temporary differences. The Company does not expect effects from these amendments. 1 Effective for annual periods beginning on or after January 1, 2023. 2 The effective date of the amendments has not yet been defined by IASB. 3 The amendments to IFRS Practice Statement 2 do not have an effective date or transition requirements. |
Risk Management (Tables)
Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risk Management | |
Schedule of exposure to exchange risk | Schedule of exposure to exchange risk December 31, 2022 December 31, 2021 Foreign currency (in thousands) R$ Foreign currency (in thousands) R$ Borrowings and financing – US$ 191,022 996,695 163,538 912,624 Borrowings and financing – Yen 45,369,189 1,795,259 49,324,813 2,390,774 Interest and charges from borrowings and financing – US$ 6,985 4,121 Interest and charges from borrowings and financing – Yen 10,502 13,970 Total exposure 2,809,441 3,321,489 Borrowing cost – US$ (31,037 ) (22,486 ) Borrowing cost – Yen (2,646 ) (2,850 ) Total foreign-currency denominated borrowings (Note 17) 2,775,758 3,296,153 |
The table below shows the exchange rate variation for the period | The table below shows the exchange rate variation for the period December 31, 2022 December 31, 2021 Variation US$ R$ 5.2177 R$ 5.5805 -6.5 % Iene R$ 0.03957 R$ 0.04847 -18.4 % |
The Company understands that the scenario presented is reasonable, given the instability of the Brazilian real against the U.S. dollar and the Yen | The Company understands that the scenario presented is reasonable, given the instability of the Brazilian real against the U.S. dollar and the Yen Scenario I (Probable) (*) Net currency exposure as of December 31, 2022 in US$ - Liabilities 191,022 US$ rate as of December 31, 2022 5.2177 Exchange rate estimated according to the scenario 5.2700 Difference between the rates ( 0.0523 ) Effect on the net financial result R$ - gain/(loss) (9,990 ) Net currency exposure as of December 31, 2022 in Yen - Liabilities 45,369,189 Yen rate as of December 31, 2022 0.03957 Exchange rate estimated according to the scenario 0.04203 Difference between the rates ( 0.00246 ) Effect on the net financial result R$ - gain/(loss) (111,608 ) Total effect on the net financial result in R$ - gain/(loss) (121,598 ) (*) For the probable scenario in U.S. dollars and Yen, the exchange rates estimated for December 31, 2023, were used, according to the Focus-BACEN and B3's Benchmark Rate report, of December 31, 2022, respectively |
The table below provides the Company's borrowings and financing subject to variable interest rates | The table below provides the Company's borrowings and financing subject to variable interest rates December 31, 2022 December 31, 2021 CDI (i) 9,251,150 7,612,299 TR (ii) 1,635,587 1,638,079 IPCA (iii) 3,073,435 3,019,459 TJLP (iv) 1,433,029 1,478,740 SOFR (v) 996,697 912,626 Interest and charges 424,856 243,696 Total 16,814,754 14,904,899 (i) CDI – (Certificado de Depósito Interbancário), an interbank deposit certificate (ii) TR – Interest Benchmark Rate (iii) IPCA – (Índice Nacional de Preços ao Consumidor Amplo), a consumer price index (iv) TJLP – (Taxa de Juros a Longo Prazo), a long-term interest rate index (v) SOFR – Secured Overnight Financing Rate |
Schedule of internal policy of market risk management | Schedule of internal policy of market risk management Banks Fitch Moody's Standard Poor's Banco do Brasil S/A AA(bra) AAA.br - Banco Santander Brasil S/A - AAA.br brAAA Brazilian Federal Savings Bank AA(bra) AAA.br brAAA Banco Bradesco S/A AAA(bra) AAA.br brAAA Itaú Unibanco Holding S/A AAA(bra) AAA.br - Banco BV - AA.br brAAA Banco BTG Pactual S/A AA(bra) AAA.br brAAA |
The table below shows the rating assessment released by the Fitch agency, for deposit transactions and financial investments in local currency | The table below shows the rating assessment released by the Fitch agency, for deposit transactions and financial investments in local currency December 31, 2022 December 31, 2021 Cash and cash equivalents and financial investments AA(bra) 2,237,629 1,905,810 AAA(bra) 1,011,685 970,474 Other (*) 296,044 275,030 3,545,358 3,151,314 (*) As of December 31, 2022, this category includes R$ 289,908 262,465 |
For agreements with floating interest rate, the interest rates used correspond to the base dates above. | For agreements with floating interest rate, the interest rates used correspond to the base dates above. 2022 2023 2024 2025 2026 2027 onwards Total As of December 31, 2022 Liabilities Borrowings and financing 3,640,245 3,740,510 3,790,915 3,503,169 3,821,448 13,422,829 31,919,116 Trade payables and contractors 430,946 — — — — — 430,946 Services payable 723,242 — — — — — 723,242 Public-Private Partnership – PPP 517,681 423,568 386,767 386,767 386,767 3,733,287 5,834,837 Program Contract Commitments 100,022 1,174 1,174 1,174 1,174 12,352 117,070 Total 5,412,136 4,165,252 4,178,856 3,891,110 4,209,389 17,168,468 39,025,211 |
Schedule of estimates used in the measurement | Schedule of estimates used in the measurement December 31, 2022 Indicators Exposure Scenario I (Probable) Assets CDI 1,689,876 13.4200 Financial income 226,781 Liabilities CDI (9,251,150) 13.4200 Interest to be incurred (1,241,504) CDI net exposure (7,561,274) (1,014,723) Liabilities TR (1,635,587) 0.0205 Expenses to be incurred (335) IPCA (3,073,435) 5.3128 Expenses to be incurred (163,285) TJLP (1,433,029) 7.2000 Interest to be incurred (103,178) SOFR (***) (996,697) 0.0491 Interest to be incurred (489) Total expenses to be incurred, net (1,282,010) (*) Source: Focus-BACEN Report of December 31, 2022 (**) Source: B3 of December 31, 2022 (***) Source: Bloomberg |
Total capital is calculated as total equity as shown in the statement of the financial position plus net debt | Total capital is calculated as total equity as shown in the statement of the financial position plus net debt December 31, 2022 December 31, 2021 Total borrowings and financing (Note 17) 18,958,671 17,723,836 (-) Cash and cash equivalents (Note 7) (1,867,485 ) (717,929 ) (-) Financial investments (Note 8) (1,677,873 ) (2,433,385 ) Net debt 15,413,313 14,572,522 Total equity 27,333,533 24,931,859 Total capital (shareholders + providers of capital) 42,746,846 39,504,381 Leverage ratio 36 % 37 % |
The estimated fair values of the financial instruments are as follows | The estimated fair values of the financial instruments are as follows December 31, 2022 December 31, 2021 Carrying amount Fair value Carrying amount Fair value Cash and cash equivalents 1,867,485 1,867,485 717,929 717,929 Financial investments 1,677,873 1,677,873 2,433,385 2,433,385 Restricted cash 37,474 37,474 28,467 28,467 Trade receivables 3,277,808 3,277,808 2,918,311 2,918,311 Water and Basic Sanitation National Agency – ANA 9,193 9,193 20,666 20,666 Other assets 212,674 212,674 226,242 226,242 |
Financial liabilities | Financial liabilities December 31, 2022 December 31, 2021 Carrying amount Fair value Carrying amount Fair value Borrowings and financing 18,958,671 19,260,133 17,723,836 17,947,954 Trade payables and contractors 430,946 430,946 236,763 236,763 Services payable 723,242 723,242 469,027 469,027 Program contract commitments 112,385 112,385 122,647 122,647 Public-Private Partnership - PPP 2,959,181 2,959,181 3,060,185 3,060,185 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | Cash and cash equivalents December 31, 2022 December 31, 2021 Cash and banks 139,844 146,853 Cash equivalents 1,727,641 571,076 Total 1,867,485 717,929 |
Financial investments (Tables)
Financial investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Investments | |
The Company has financial investments in CDB, with daily liquidity | The Company has financial investments in CDB, with daily liquidity December 31, 2022 December 31, 2021 Banco BV 289,909 262,465 Banco Itaú Unibanco S/A 403,732 366,906 Banco Bradesco S/A 578,752 524,791 Banco BTG Pactual S/A 404,363 367,361 Banco do Brasil S/A 1,117 911,862 1,677,873 2,433,385 |
Restricted cash (Tables)
Restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restricted Cash | |
Schedule of restricted cash | Schedule of restricted cash December 31, 2022 December 31, 2021 Agreement with the São Paulo municipal government (i) 30,231 21,464 Brazilian Federal Savings Bank – escrow deposits 433 740 Other 6,810 6,263 37,474 28,467 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade Receivables | |
Schedule of financial position | Schedule of financial position December 31, 2022 December 31, 2021 Private sector: General (i) and special customers (ii) 2,287,782 2,042,023 Agreements (iii) 416,550 514,616 2,704,332 2,556,639 Government entities: Municipal 609,731 586,810 Federal 10,644 7,869 Agreements (iii) 372,943 278,844 993,318 873,523 Wholesale customers – Municipal governments: (iv) Mogi das Cruzes 4,048 3,580 São Caetano do Sul 45,367 24,464 Total wholesale customers – Municipal governments 49,415 28,044 Unbilled supply 959,260 740,193 Subtotal 4,706,325 4,198,399 Allowance for doubtful accounts (1,428,517) (1,280,088) Total 3,277,808 2,918,311 Current 3,062,574 2,695,077 Noncurrent 215,234 223,234 Total 3,277,808 2,918,311 (i) General customers - residential and small and mid-sized companies; (ii) Special customers - large consumers, commercial, industries, condominiums and special billing customers (fixed demand agreements, industrial waste, wells, among others); (iii) Agreements - installment payments of past-due receivables, plus inflation adjustment and interest, according to the agreements; (iv) Wholesale basis customers - municipal governments - This balance refers to invoices issued as a result of services provided to municipalities, which are responsible for distributing to, billing and charging final customers. |
Schedule of aging of trade receivables | Schedule of aging of trade receivables December 31, 2022 December 31, 2021 Current 2,244,754 1,896,535 Past-due: Up to 30 days 489,709 502,164 From 31 to 60 days 248,128 267,723 From 61 to 90 days 165,306 182,977 From 91 to 120 days 150,941 155,018 From 121 to 180 days 281,530 258,718 From 181 to 360 days 58,702 95,751 Over 360 days 1,067,255 839,513 Total past-due 2,461,571 2,301,864 Total 4,706,325 4,198,399 |
Schedule of allowance for doubtful accounts | Schedule of allowance for doubtful accounts Changes in assets December 31, 2022 December 31, 2021 December 31, 2020 Balance at beginning of the year 1,280,088 1,157,619 1,042,015 Losses 209,360 182,547 176,776 Recoveries (60,931 ) (60,078 ) (61,172 ) Balance at the end of the year 1,428,517 1,280,088 1,157,619 Reconciliation of estimated/historical losses of income December 31, 2022 December 31, 2021 December 31, 2020 Write-offs (636,366 ) (508,055 ) (329,512 ) (Losses)/reversal with state entities - related parties 2,738 (13,206 ) 290 (Losses) with the private sector / government entities (209,360 ) (182,547 ) (176,776 ) Recoveries 60,931 60,078 61,172 Amount recorded expense (Note 29) (782,057 ) (643,730 ) (444,826 ) |
Schedule of Judicial bonds | Schedule of Judicial bonds Debtor December 31, 2022 Municpality of São Paulo 2,656,113 Municpality of Cotia 103,729 Municpality of Cachoeira Paulista 13,672 Others 33,804 TOTAL 2,807,318 |
Related-Party Balances and Tr_2
Related-Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related-party Balances And Transactions | |
Schedule of loan agreement through credit facility | Schedule of loan agreement through credit facility December 31, 2022 December 31, 2021 Accounts receivable Current: Sanitation services (ii) 144,937 127,614 Allowance for losses (49,595 ) (52,333 ) Reimbursement for retirement and pension benefits paid (G0): - monthly flow (payments) (iii) and (iv) 13,376 11,930 - GESP Agreement – 2015 (vi) 97,075 86,446 Total current 205,793 173,657 Noncurrent: Agreement for the installment payment of sanitation services 1,361 1,361 Reimbursement of additional retirement and pension benefits paid (G0): - GESP Agreement – 2015 (vi) 949,589 643,534 Total noncurrent 950,950 644,895 Total receivables 1,156,743 818,552 Assets: Sanitation services 96,703 76,642 Reimbursement of additional retirement and pension benefits (G0) 1,060,040 741,910 Total 1,156,743 818,552 Liabilities: Interest on capital payable 372,550 275,240 |
Schedule of loan agreement through credit facility | Schedule of loan agreement through credit facility 2022 2021 2020 Revenue from sanitation services 661,955 522,608 501,756 Payments received from related parties (632,501 ) (439,349 ) (520,881 ) Payment received from reimbursement referring to Law 4,819/58 (186,690 ) (179,787 ) (173,874 ) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments Abstract | |
Schedule of the investees financial statements and equity interest | Schedule of the investees financial statements and equity interest Company Equity Contribution Dividends distributed Profit (loss) for the year 2022 2021 2020 2022 2022 2022 2021 2020 Sesamm 59,371 58,421 51,514 — (13,875 ) 14,825 9,059 7,332 Águas de Andradina 30,777 29,591 29,576 — — 1,186 2,424 778 Águas de Castilho 10,787 9,384 8,533 — — 1,403 1,428 1,613 Saneaqua Mairinque¹ — — 4,013 — — — — (770 ) Attend Ambiental 29,729 23,493 11,409 — (1,941 ) 8,177 4,701 3,923 Aquapolo Ambiental 73,926 58,172 41,903 — (14,742 ) 30,496 25,269 19,131 Paulista Geradora de Energia (*) 10,486 6,153 6,692 5,077 — (744 ) (539 ) (452 ) Cantareira SP Energia 1,000 — — 1,000 — — — FOXX URE-BA Ambiental 69,258 — — 69,258 — — — Infranext Soluções em Pavimentação (**) 7,050 — — 7,050 — — — (*) SABESP contributed R$ 5,077, corresponding to 25% of the interest. As of December 31, 2022, Servitec and Tecniplan had an outstanding payable amount of R$ 15,233 related to the remaining interest of 75% in PGE. (**) Infranext’s share capital will be R$ 12,000. As of December 31, 2022, SABESP had an outstanding payable amount of R$ 4,950. (¹) The amounts presented for 2020 refer to July 31, 2020. Company Investments Contribution Dividends distributed OCI (***) Reclassification Equity in the earnings of subsidiaries Interest percentage 2022 2021 2022 2021 2020 2020 2022 2021 2020 2022 2021 2020 Sesamm 21,374 21,032 — (4,995 ) — — 5,337 3,261 2,640 36 % 36 % 36 % Águas de Andradina 9,233 8,877 — — — — 356 700 233 30 % 30 % 30 % Águas de Castilho 3,236 2,815 — — — — 421 433 485 30 % 30 % 30 % Saneaqua Mairinque² — — — — 17 (1,203 ) — — (248 ) 46 % 46 % 30 % Attend Ambiental 13,379 10,572 — (873 ) — — 3,680 5,438 1,765 45 % 45 % 45 % Aquapolo Ambiental 36,223 28,504 — (7,224 ) — — 14,943 12,382 9,374 49 % 49 % 49 % Paulista Geradora de Energia 6,429 1,538 5,077 — — — (186 ) (135 ) (113 ) 25 % 25 % 25 % Cantareira SP Energia 490 — 490 — — — — — — 49 % — — FOXX URE-BA Ambiental 13,852 — 13,852 — — — — — — 20 % — — Infranext Soluções em Pavimentação 450 — 450 — — — — — — 45 % — — Total 104,666 73,338 19,869 (13,092 ) 17 (1,203 ) 24,551 22,079 14,136 Other investments 6,099 6,099 Overall total 110,765 79,437 (***) Other Comprehensive Income ( ) On August 20, 2020, the investee Saneaqua Mairinque held an Extraordinary Shareholders' Meeting that approved a capital increase in the amount of R$ 21,944 17,178,988 5,734 |
Investment properties (Tables)
Investment properties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment Properties | |
Schedule of investment properties | Schedule of investment properties December 31, 2021 Additions Depreciation December 31, 2022 Investment properties 46,126 648 (48 ) 46,726 December 31, 2020 Write-offs and disposals Depreciation December 31, 2021 Investment properties 46,274 (100 ) (48 ) 46,126 December 31, 2019 Transfers Depreciation December 31, 2020 Investment properties 47,562 (1,240 ) (48 ) 46,274 |
Contract assets (Tables)
Contract assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Contract assets [abstract] | |
Schedule of contract assets | Schedule of contract assets December 31, 2021 Additions (i) Transfers Transfers of works to intangible assets (ii) December 31, 2022 (iii) Total contract assets 8,550,102 5,240,528 2,702 (5,179,364 ) 8,613,968 (i) The largest additions of the period are located in the municipalities of São Paulo, São Bernardo do Campo and Praia Grande, in the amounts of R$ 2,267 million, R$ 181 million and R$ 134 million, respectively. (ii) The largest transfers of the period are located in the municipalities of São Paulo, Praia Grande and São Bernardo do Campo, in the amounts of R$ 2,640 million, R$ 619 million and R$ 324 million, respectively. (iii) The largest works are located in the municipalities of São Paulo, Franca and São Bernardo do Campo, in the amounts of R$ 2,830 million, R$ 324 million and R$ 262 million, respectively. As of December 31, 2022, contract assets include leases recognized before December 31, 2019 in accordance with IAS 17 amounting to R$ 276,893 276,893 December 31, 2020 Additions Transfers Transfers of works to intangible assets December 31, 2021 Total contract assets 7,969,164 4,759,789 2,412 (4,181,263 ) 8,550,102 December 31, 2019 Additions Transfers Transfers of works to intangible assets December 31, 2020 Total contract assets 7,617,714 3,984,158 55,706 (3,688,414 ) 7,969,164 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets | |
Statement of financial position details | Statement of financial position details December 31, 2022 December 31, 2021 Cost Accumulated amortization Net Cost Accumulated amortization Net Intangible right arising from: Concession agreements – equity value 722,730 (223,404 ) 499,326 696,728 (205,671 ) 491,057 Concession agreements – economic value 1,585,271 (933,232 ) 652,039 1,497,968 (816,527 ) 681,441 Program contracts 26,875,408 (8,537,949 ) 18,337,459 24,804,170 (7,652,149 ) 17,152,021 Program contracts – commitments 1,709,757 (444,765 ) 1,264,992 1,709,757 (391,800 ) 1,317,957 Services contracts – São Paulo 25,584,703 (7,714,252 ) 17,870,451 22,834,803 (6,676,032 ) 16,158,771 Software license of use 1,249,881 (654,477 ) 595,404 1,133,833 (535,099 ) 598,734 Right of use – other assets 170,921 (95,869 ) 75,052 173,715 (69,862 ) 103,853 Right of use - investments 26,148 — 26,148 — — — Total 57,924,819 (18,603,948 ) 39,320,871 52,850,974 (16,347,140 ) 36,503,834 |
The obligations assumed by the Company as of December 31, 2021 and 2020 are shown in the table below | The obligations assumed by the Company as of December 31, 2021 and 2020 are shown in the table below December 31, 2021 Addition Transfer of contract assets Transfers Write-offs and disposals Amortization December 31, 2022 Intangible right arising from: Concession agreements – equity value (*) 491,057 — 27,166 (144 ) (115 ) (18,638 ) 499,326 Concession agreements – economic value 681,441 13 48,428 33,576 (9 ) (111,410 ) 652,039 Program contracts (*) 17,152,021 6,635 2,132,675 2,944 (2,800 ) (954,016 ) 18,337,459 Program contracts – commitments 1,317,957 — — — — (52,965 ) 1,264,992 Services contracts – São Paulo 16,158,771 208 2,855,284 (41,133 ) (6,063 ) (1,096,616 ) 17,870,451 Software license of use 598,734 214 115,811 6 — (119,361 ) 595,404 Right of use – Other assets 103,853 42,182 — — (67 ) (70,916 ) 75,052 Right of use – Investments — 26,148 — — — — 26,148 Total 36,503,834 75,400 5,179,364 (4,751 ) (9,054 ) (2,423,922 ) 39,320,871 (*) As of December 31, 2022, intangible assets include leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 222,572 54,356 168,216 245,681 65,012 180,669 December 31, 2020 Addition Transfer of contract assets Transfers Write-offs and disposals Amortization December 31, 2021 Intangible right arising from: Concession agreements – equity value (*) 483,775 — 24,656 467 (148 ) (17,693 ) 491,057 Concession agreements – economic value 734,665 — 52,275 (14 ) (242 ) (105,243 ) 681,441 Program contracts (*) 16,360,307 17,690 1,640,733 13,744 (8,840 ) (871,613 ) 17,152,021 Program contracts – commitments 1,370,923 — — — — (52,966 ) 1,317,957 Services contracts – São Paulo 14,872,604 14,950 2,307,851 (13,827 ) (13,745 ) (1,009,062 ) 16,158,771 Software license of use 540,625 — 155,748 — — (97,639 ) 598,734 Right of use – Other assets 42,676 140,321 — — (4,103 ) (75,041 ) 103,853 Total 34,405,575 172,961 4,181,263 370 (27,078 ) (2,229,257 ) 36,503,834 (*) As of December 31, 2021, intangible assets include leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 245,681 65,012 180,669 269,561 76,454 193,107 December 31, 2019 Addition Contract renewal Transfer of contract assets Transfers Write-offs and disposals Amortization December 31, 2020 Intangible right arising from: Concession agreements – equity value (*) 1,494,853 1 (1,031,830 ) 47,154 1,440 (858 ) (26,985 ) 483,775 Concession agreements – economic value 712,852 — — 113,320 (1,403 ) (42 ) (90,062 ) 734,665 Program contracts (*) 13,819,700 303,472 1,031,830 2,075,268 (51,570 ) (5,423 ) (812,970 ) 16,360,307 Program contracts – commitments 1,364,875 58,323 — — — — (52,275 ) 1,370,923 Services contracts – São Paulo 14,390,763 20,940 — 1,382,656 (23,645 ) (9,990 ) (888,120 ) 14,872,604 Software license of use 471,706 — — 70,016 78,169 — (79,266 ) 540,625 Right of use – Other assets 70,698 28,549 — — — — (56,571 ) 42,676 Total 32,325,447 411,285 — 3,688,414 2,991 (16,313 ) (2,006,249 ) 34,405,575 (*) As of December 31, 2020, intangible assets include leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 269,561 76,454 193,107 292,824 87,266 205,558 |
Intangible assets | Intangible assets December 31, 2022 December 31, 2021 Alto Tietê 251,545 269,062 São Lourenço 2,725,900 2,895,798 Total 2,977,445 3,164,860 |
The obligations assumed by the Company | The obligations assumed by the Company December 31, 2022 December 31, 2021 Current liabilities Noncurrent liabilities Total liabilities Current liabilities Noncurrent liabilities Total liabilities Alto Tietê 91,782 36,645 128,427 69,442 102,873 172,315 São Lourenço 130,631 2,700,123 2,830,754 73,315 2,814,555 2,887,870 Total 222,413 2,736,768 2,959,181 142,757 2,917,428 3,060,185 |
Right of use | Right of use Nature December 31, 2022 December 31, 2021 Leases - Contract Assets 276,893 276,893 Leases - Concession Agreements and Program Contracts Cost 405,431 405,446 Accumulated amortization (182,859 ) (159,765 ) (=) Net 222,572 245,681 Other assets (*) Vehicles 153,384 142,003 Properties 11,711 6,570 Equipment 5,826 9,841 Other assets — 15,301 Accumulated amortization (95,869 ) (69,862 ) (=) Net 75,052 103,853 Right of use 574,517 626,427 (*) From January to December 2022, costs and accumulated amortization totaling R$ 44,976 108,406 |
The table below shows the impact in the income statements | The table below shows the impact in the income statements Impact in the income statement December 31, 2022 December 31, 2021 December 31, 2020 Right-of-use amortization (105,551 ) (75,041 ) (79,834 ) Financial result – interest expenses (72,050 ) (68,730 ) (62,956 ) Short-term and low-value lease expenses (25,365 ) (22,467 ) (13,845 ) Decrease of the income of the year (202,966 ) (166,238 ) (156,635 ) |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment [abstract] | |
Schedule of statement of financial position details | Schedule of statement of financial position details December 31, 2022 December 31, 2021 Cost Accumulated depreciation Net Annual Depreciation average rate Cost Accumulated depreciation Net Annual Depreciation average rate Land 94,228 — 94,228 — 94,213 — 94,213 — Buildings 90,311 (42,343 ) 47,968 2.1 % 86,703 (41,205 ) 45,498 2.1 % Equipment 412,828 (291,963 ) 120,865 15.3 % 397,782 (282,628 ) 115,154 15.1 % Transportation equipment 12,578 (10,083 ) 2,495 9.9 % 10,434 (7,962 ) 2,472 9.9 % Furniture and fixtures 38,528 (15,032 ) 23,496 6.7 % 36,561 (14,482 ) 22,079 6.7 % Other 50,189 (302 ) 49,887 5.0 % 11,982 (241 ) 11,741 5.0 % Total 698,662 (359,723 ) 338,939 11.2 % 637,675 (346,518 ) 291,157 11.1 % |
Schedule of changes in property, plant, and equipment | Schedule of changes in property, plant, and equipment December 31, 2021 Additions Transfers Write-offs and disposals Depreciation December 31,2022 Land 94,213 — 15 — — 94,228 Buildings 45,498 4,657 (976 ) (45 ) (1,166 ) 47,968 Equipment 115,154 27,849 1,988 (781 ) (23,345 ) 120,865 Transportation equipment 2,472 175 658 (3 ) (807 ) 2,495 Furniture and fixtures 22,079 2,646 394 (149 ) (1,474 ) 23,496 Other 11,741 38,341 (30 ) (78 ) (87 ) 49,887 Total 291,157 73,668 2,049 (1,056 ) (26,879 ) 338,939 December 31,2020 Additions Transfers Write-offs and disposals Depreciation December 31, 2021 Land 94,213 — — — — 94,213 Buildings 45,347 3,181 (1,965 ) (5 ) (1,060 ) 45,498 Equipment 101,016 38,807 (3,398 ) (365 ) (20,906 ) 115,154 Transportation equipment 2,969 97 69 — (663 ) 2,472 Furniture and fixtures 17,419 4,477 1,647 (206 ) (1,258 ) 22,079 Other 7,287 3,719 865 — (130 ) 11,741 Total 268,251 50,281 (2,782 ) (576 ) (24,017 ) 291,157 December 31, 2019 Additions Transfers Write-offs and disposals Depreciation December 31, 2020 Land 92,962 — 1,251 — — 94,213 Buildings 41,705 5,430 (713 ) — (1,075 ) 45,347 Equipment 152,273 26,055 (49,188 ) (174 ) (27,950 ) 101,016 Transportation equipment 1,984 298 1,351 — (664 ) 2,969 Furniture and fixtures 18,219 4,087 (3,712 ) (103 ) (1,072 ) 17,419 Other 7,250 6,537 (6,446 ) — (54 ) 7,287 Total 314,393 42,407 (57,457 ) (277 ) (30,815 ) 268,251 |
Borrowings and financing (Table
Borrowings and financing (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings and financing | |
Schedule of borrowings and financing outstanding | Schedule of borrowings and financing outstanding Borrowings and financing outstanding balance December 31, 2022 December 31, 2021 Financial institution Current Noncurrent Total Current Noncurrent Total Local currency 12th issue debentures 45,450 67,681 113,131 45,450 113,049 158,499 14th issue debentures — — — 25,388 — 25,388 17th issue debentures 144,632 — 144,632 102,252 101,982 204,234 18th issue debentures 49,937 45,649 95,586 48,479 92,677 141,156 21st issue debentures — — — 174,849 — 174,849 22nd issue debentures 199,901 326,433 526,334 200,000 508,530 708,530 23rd issue debentures — 864,910 864,910 — 864,776 864,776 24th issue debentures — 488,478 488,478 — 461,350 461,350 26th issue debentures — 1,239,645 1,239,645 — 1,168,317 1,168,317 27th issue debentures 299,614 698,339 997,953 — 997,433 997,433 28th issue debentures — 1,197,756 1,197,756 — 1,197,395 1,197,395 29th issue debentures — 1,275,295 1,275,295 — 1,230,602 1,230,602 30th issue debentures — 998,110 998,110 — — — Brazilian Federal Savings Bank 99,767 1,422,145 1,521,912 98,784 1,380,170 1,478,954 Brazilian Development Bank - BNDES PAC 6,736 — 6,736 13,394 6,665 20,059 Brazilian Development Bank - BNDES PAC II 9751 7,214 23,344 30,558 7,161 30,308 37,469 Brazilian Development Bank - BNDES PAC II 9752 4,887 15,884 20,771 4,851 20,619 25,470 Brazilian Development Bank - BNDES ONDA LIMPA 26,949 33,617 60,566 26,751 60,089 86,840 Brazilian Development Bank - BNDES TIETÊ III 154,437 656,264 810,701 117,593 617,251 734,844 Brazilian Development Bank - BNDES 2015 33,807 390,127 423,934 33,558 420,685 454,243 Brazilian Development Bank - BNDES 2014 6,572 16,525 23,097 6,524 22,874 29,398 Inter-American Development Bank - BID 2202 181,349 2,164,009 2,345,358 181,349 2,344,403 2,525,752 Inter-American Development Bank - BID INVEST 37,340 853,725 891,065 34,800 890,400 925,200 Inter-American Development Bank - BID INVEST 2022 14,100 452,085 466,185 — — — International Finance Corporation - IFC 80,000 670,996 750,996 — — — Leases (Concession Agreements, Program Contracts and Contract Assets) 44,453 313,391 357,844 36,640 360,671 397,311 Leases (Others) 72,109 29,265 101,374 69,306 56,663 125,969 Other 6,241 5,867 12,108 4,790 9,274 14,064 Interest and charges 417,878 — 417,878 239,581 — 239,581 Total in local currency 1,933,373 14,249,540 16,182,913 1,471,500 12,956,183 14,427,683 Borrowings and financing outstanding balance December 31, 2022 December 31, 2021 Financial institution Current Noncurrent Total Current Noncurrent Total Foreign currency Inter-American Development Bank - BID 1212 – US$30,834 thousand (US$41,112 thousand in December 2021) 53,628 107,256 160,884 57,357 172,071 229,428 Inter-American Development Bank - BID 4623 – US$74,299 thousand (US$30,329 thousand in December 2021) — 367,441 367,441 — 155,192 155,192 International Bank of Reconstruction and Development -BIRDs 7662 e 8906 – US$78,197 thousand (US$76,712 thousand in December 2021) 31,722 365,648 397,370 33,927 386,328 420,255 JICA 15 – ¥8,067,010 thousand (¥9,219,440 thousand in December 2021) 45,602 273,610 319,212 55,858 391,008 446,866 JICA 18 – ¥7,253,120 thousand (¥8,289,280 thousand in December 2021) 41,001 245,865 286,866 50,223 351,398 401,621 JICA 17 – ¥3,753,048 thousand (¥3,706,564 thousand in December 2021) 11,424 136,227 147,651 12,833 165,900 178,733 JICA 19 – ¥26,296,011 thousand (¥28,109,529 thousand in December 2021) 71,761 967,124 1,038,885 87,901 1,272,803 1,360,704 BID 1983AB – US$7,692 thousand (US$15,385 thousand in December 2021) 39,962 — 39,962 42,927 42,336 85,263 Interest and charges 17,487 — 17,487 18,091 — 18,091 Total in foreign currency 312,587 2,463,171 2,775,758 359,117 2,937,036 3,296,153 Total borrowings and financing 2,245,960 16,712,711 18,958,671 1,830,617 15,893,219 17,723,836 |
Schedule of borrowings terms | Schedule of borrowings terms Local currency Guarantees Maturity Annual interest rates Inflation adjustment 12th issue debentures Own funds 2025 TR + 9.5% 14th issue debentures Own funds 2022 TJLP +1.92% (Series 1 and 3) and 9.19% (Series 2) IPCA (Series 2) 17th issue debentures Own funds 2023 CDI +0.75% (Series 1) and 4.5% (Series 2) and 4.75% (Series 3) IPCA (Series 2 and 3) 18th issue debentures Own funds 2024 TJLP + 1.92 % (Series 1 and 3) and 8.25% (Series 2) IPCA (Series 2) 21st issue debentures Own funds 2022 CDI + 0.60% e CDI+ 0.90% 22nd issue debentures Own funds 2025 CDI +0.58% (Series 1) and CDI + 0.90% (Series 2) and 6.0% (Series 3) IPCA (Series 3) 23rd issue debentures Own funds 2027 CDI +0.49% (Series 1) and CDI + 0.63% (Series 2) 24th issue debentures Own funds 2029 3.20% (Series 1) and 3.37% (Series 2) IPCA (Series 1 and 2) 26th issue debentures Own funds 2030 4.65% (series 1) and 4.95% (series 2) IPCA (series 1 and 2) 27th issue debentures Own funds 2027 CDI +1.60% (Series 1) and CDI + 1.80% (Series 2) and 2.25% (Series 3) 28th issue debentures Own funds 2028 CDI +1.20% (Series 1) and CDI + 1.44% (Series 2) and 1.60% (Series 3) 29th issue debentures Own funds 2036 CDI +1.29% (Series 1) and 5.3058% (Series 2) and 5.4478% (Series 3) IPCA (series 2 and 3) 30th issue debentures Own funds 2029 CDI +1.30% (Series 1) and 1.58% (Series 2) Brazilian Federal Savings Bank Own funds 2023/2042 5% to 9.5% TR Brazilian Development Bank - BNDES PAC Own funds 2023 TJLP+1.82% Brazilian Development Bank - BNDES PAC II 9751 Own funds 2027 TJLP+1.72% Brazilian Development Bank - BNDES PAC II 9752 Own funds 2027 TJLP+1.72% Brazilian Development Bank - BNDES ONDA LIMPA Own funds 2025 TJLP+1.92% Brazilian Development Bank - BNDES TIETÊ III Own funds 2028 TJLP+1.66% Brazilian Development Bank - BNDES 2015 Own funds 2035 TJLP+2.18% Brazilian Development Bank - BNDES 2014 Own funds 2026 TJLP+1.76% Inter-American Development Bank – BID 2202 Government 2035 CDI+0.86% Inter-American Development Bank – BID INVEST Own funds 2034 CDI+1.90% and CDI+2.70% Inter-American Development Bank – BID INVEST 2022 Own funds 2036 CDI+2.50% International Finance Corporation – IFC Own funds 2032 CDI+2.00% Leases (Concession Agreements, Program Contracts and Contract Assets) 2035 7.73% to 10.12% IPC Leases (Others) 2027 5.20% to 15.39% Other Own funds 2025 3% (FEHIDRO) and TJLP + 1.5% (FINEP) Foreign currency Guarantees Maturity Annual interest rates Exchange rate changes Inter-American Development Bank - BID 1212 - US$30,834 thousand Government 2025 3.31% (*) US$ Inter-American Development Bank - BID 4623 - US$74,299 thousand Government 2044 1.12% (*) US$ International Bank for Reconstruction and Development – BIRDs 7662 and 8906 - US$78,197 thousand Government 2034 2.85% (*) US$ JICA 15 – ¥8,067,010 thousand Government 2029 1.8% and 2.5% Yen JICA 18 – ¥7,253,120 thousand Government 2029 1.8% and 2.5% Yen JICA 17– ¥3,753,048 thousand Government 2035 1.2% and 0.01% Yen JICA 19– ¥26,296,011 thousand Government 2037 1.7% and 0.01% Yen BID 1983AB – US$7,692 thousand - 2023 2.08% to 2.38% (*) US$ (*) Rates comprising SOFR + contractually defined spread. |
Schedule of borrowings payment schedule | Schedule of borrowings payment schedule 2023 2024 2025 2026 2027 2028 2029 to 2044 TOTAL LOCAL CURRENCY Debentures 739,534 1,072,853 1,203,451 1,082,322 1,700,765 644,748 1,498,157 7,941,830 Brazilian Federal Savings Bank 99,767 99,270 105,476 112,071 119,068 126,371 859,889 1,521,912 BNDES 240,602 233,867 213,586 203,726 191,168 72,322 221,092 1,376,363 BID 2202 181,349 181,349 181,349 181,349 181,349 181,349 1,257,264 2,345,358 BID INVEST 37,340 39,550 44,300 106,390 108,728 143,591 411,166 891,065 BID INVEST 2022 14,100 14,100 38,275 38,431 38,431 38,431 284,417 466,185 IFC 80,000 80,000 80,000 80,000 80,000 80,000 270,996 750,996 Leases (Concession Agreements, Program Contracts and Contract Assets) 44,453 46,638 45,839 30,769 33,767 33,968 122,410 357,844 Leases (Others) 72,109 15,580 9,248 3,972 465 — — 101,374 Other 6,241 2,979 2,746 142 — — — 12,108 Interest and charges 417,878 — — — — — — 417,878 TOTAL IN LOCAL CURRENCY 1,933,373 1,786,186 1,924,270 1,839,172 2,453,741 1,320,780 4,925,391 16,182,913 FOREIGN CURRENCY BID 53,628 53,628 63,830 20,403 20,403 20,403 296,030 528,325 BIRD 31,722 31,722 31,722 31,722 31,722 31,722 207,038 397,370 JICA 169,788 169,787 169,787 169,787 169,787 169,787 773,891 1,792,614 BID 1983AB 39,962 — — — — — — 39,962 Interest and charges 17,487 — — — — — — 17,487 TOTAL IN FOREIGN CURRENCY 312,587 255,137 265,339 221,912 221,912 221,912 1,276,959 2,775,758 Overall Total 2,245,960 2,041,323 2,189,609 2,061,084 2,675,653 1,542,692 6,202,350 18,958,671 |
Schedule of changes in borrowings | Schedule of changes in borrowings December 31, 2021 Addition (lease) Funding Borrowing costs Monetary and Exchange variation Inflation adjustment / exchange variation and incorporated interest – Capitalized Interest paid Amortization Accrued interest Provision for interest and fees – Capitalized Expenses with borrowing costs December 31, 2022 LOCAL CURRENCY Debentures 7,467,968 — 1,000,000 (4,320 ) 165,879 — (712,966 ) (563,504 ) 544,116 257,951 11,242 8,166,366 Brazilian Federal Savings Bank 1,483,113 — 119,437 — 17,247 7,131 (117,041 ) (100,855 ) 80,422 36,731 — 1,526,185 BNDES 1,392,844 — 200,000 — 7,020 3,117 (104,596 ) (222,353 ) 67,311 37,391 259 1,380,993 BID 2202 2,589,442 — — — — — (281,971 ) (181,349 ) 98,574 224,899 955 2,450,550 BID INVEST 956,942 — — — — — (108,921 ) (34,800 ) 129,733 — 665 943,619 IFC — — 760,000 (9,385 ) — — (24,978 ) — — 48,507 381 774,525 BID INVEST 2022 — — 470,000 (3,922 ) — — (30,698 ) — 33,840 — 107 469,327 Leases (Concession Agreements, Program Contracts and Contract Assets) 397,311 — — — — — (54,390 ) (39,467 ) 54,390 — — 357,844 Leases (Others) 125,969 42,182 — — — — (17,659 ) (84,437 ) 35,319 — — 101,374 Other 14,094 — 3,654 — 56 2 (789 ) (5,669 ) 748 34 — 12,130 TOTAL IN LOCAL CURRENCY 14,427,683 42,182 2,553,091 (17,627 ) 190,202 10,250 (1,454,009 ) (1,232,434 ) 1,044,453 605,513 13,609 16,182,913 FOREIGN CURRENCY BIDs 387,837 — 226,497 (6,732 ) (20,355 ) — (12,581 ) (56,273 ) 13,733 — 567 532,693 BIRD 420,881 — 39,417 (3,166 ) (28,665 ) 61 (3,779 ) (30,895 ) 5,525 20 363 399,762 JICA 2,401,887 — 15,546 — (437,296 ) 3,243 (33,167 ) (177,007 ) 26,597 3,102 204 1,803,109 BID 1983AB 85,548 — — — (5,602 ) — (1,952 ) (40,115 ) 1,284 614 417 40,194 TOTAL IN FOREIGN CURRENCY 3,296,153 — 281,460 (9,898 ) (491,918 ) 3,304 (51,479 ) (304,290 ) 47,139 3,736 1,551 2,775,758 TOTAL 17,723,836 42,182 2,834,551 (27,525 ) (301,716 ) 13,554 (1,505,488 ) (1,536,724 ) 1,091,592 609,249 15,160 18,958,671 December 31, 2020 Addition (lease) Funding Borrowing costs Monetary and Exchange variation Inflation adjustment / exchange variation and incorporated interest – Capitalized Interest paid Amortization Accrued interest Provision for interest and fees – Capitalized Expenses with borrowing costs December 31, 2021 LOCAL CURRENCY Debentures 6,756,504 — 2,450,000 (25,717 ) 225,106 — (387,618 ) (1,963,282 ) 258,114 139,563 15,298 7,467,968 Brazilian Federal Savings Bank 1,418,832 — 156,488 — 685 — (113,030 ) (93,064 ) 79,966 33,236 — 1,483,113 BNDES 1,370,902 — 207,136 — — — (88,084 ) (186,179 ) 51,122 37,688 259 1,392,844 BID 2202 2,730,195 — — — — — (97,829 ) (181,349 ) 63,964 73,506 955 2,589,442 BID INVEST 944,513 — — — — — (33,276 ) (18,340 ) 63,380 — 665 956,942 Leases (Concession Agreements, Program Contracts and Contract Assets) 428,743 — — — — — (52,250 ) (31,432 ) 52,250 — — 397,311 Leases (Others) 45,876 140,187 — — — — (15,782 ) (76,013 ) 31,701 — — 125,969 Other 15,197 — 2,921 (32 ) — — (718 ) (3,986 ) 690 22 — 14,094 TOTAL IN LOCAL CURRENCY 13,710,762 140,187 2,816,545 (25,749 ) 225,791 — (788,587 ) (2,553,645 ) 601,187 284,015 17,177 14,427,683 FOREIGN CURRENCY BIDs 317,302 — 108,728 (7,620 ) 22,979 — (8,488 ) (53,197 ) 7,936 — 197 387,837 BIRD 426,860 — — (3,377 ) 30,814 — (2,481 ) (32,965 ) 1,789 — 241 420,881 JICA 2,684,321 — 34,360 (76 ) (108,851 ) 10,198 (43,184 ) (216,190 ) 35,315 5,802 192 2,401,887 BID 1983AB 119,379 — — — 6,536 — (2,705 ) (40,607 ) 1,753 777 415 85,548 TOTAL IN FOREIGN CURRENCY 3,547,862 — 143,088 (11,073 ) (48,522 ) 10,198 (56,858 ) (342,959 ) 46,793 6,579 1,045 3,296,153 TOTAL 17,258,624 140,187 2,959,633 (36,822 ) 177,269 10,198 (845,445 ) (2,896,604 ) 647,980 290,594 18,222 17,723,836 December 31, 2019 Foreign/local currency translation Addition (lease) Funding Borrowing costs Monetary and exchange variation Inflation adjustment / exchange variation and incorporated interest – Capitalized Interest paid Amortization Accrued interest Provision for interest and fees – Capitalized Expenses with borrowing costs December 31, 2020 LOCAL CURRENCY Debentures 3,711,228 — — 3,507,640 (52,328 ) 86,939 — (161,494 ) (572,871 ) 201,150 26,073 10,167 6,756,504 Brazilian Federal Savings Bank 1,429,250 — — 74,485 — — — (111,601 ) (84,821 ) 73,067 38,452 — 1,418,832 BNDES 1,201,411 — — 213,514 — — — (47,164 ) (81,213 ) 47,668 36,427 259 1,370,902 BID 2202 — 2,807,371 — — — — — (37,613 ) (90,674 ) 22,668 27,886 557 2,730,195 BID INVEST — — — 950,000 (7,125 ) — — — — 1,638 — — 944,513 Leases (Concession Agreements, Program Contracts and Contract Assets) 459,671 — — — — — — (51,431 ) (30,928 ) 51,431 — — 428,743 Leases (Others) 74,453 — 28,549 — — — — (9,108 ) (56,571 ) 8,553 — — 45,876 Other 9,898 — — 7,250 — — — (671 ) (1,962 ) 651 31 — 15,197 TOTAL IN LOCAL CURRENCY 6,885,911 2,807,371 28,549 4,752,889 (59,453 ) 86,939 — (419,082 ) (919,040 ) 406,826 128,869 10,983 13,710,762 FOREIGN CURRENCY BIDs 2,316,190 (2,807,371 ) — 52,141 (6,635 ) 845,246 48,246 (45,010 ) (121,088 ) 10,490 24,695 398 317,302 BIRD 357,880 — — — (2,029 ) 102,029 1,217 (7,572 ) (31,216 ) 5,659 752 140 426,860 Eurobonds 1,413,956 — — — — 457,931 — (104,170 ) (1,868,676 ) 90,941 9,195 823 — JICA 2,106,908 — — 40,830 (117 ) 715,956 17,841 (43,758 ) (200,597 ) 40,172 6,897 189 2,684,321 BID 1983AB 163,864 — — — (152 ) 59,078 — (7,033 ) (103,482 ) 5,843 618 643 119,379 TOTAL IN FOREIGN CURRENCY 6,358,798 (2,807,371 ) — 92,971 (8,933 ) 2,180,240 67,304 (207,543 ) (2,325,059 ) 153,105 42,157 2,193 3,547,862 TOTAL 13,244,709 — 28,549 4,845,860 (68,386 ) 2,267,179 67,304 (626,625 ) (3,244,099 ) 559,931 171,026 13,176 17,258,624 |
Schedule of funding | Schedule of funding Value Maturity Remuneration Series 1 R$ 500,000 03/2027 CDI + 1.30 p.a. Series 2 R$ 500,000 03/2029 CDI + 1.58 p.a. |
Schedule of restrictive covenants ratios | Schedule of restrictive covenants ratios Covenants Adjusted EBITDA / Adjusted Financial Expenses Equal to or higher than 2.80 EBITDA / Financial Expenses Paid Equal to or higher than 2.35 Adjusted Net Debt / Adjusted EBITDA Equal to or lower than 3.80 Net Debt / Adjusted EBITDA Equal to or lower than 3.50 Total Adjusted Debt / Adjusted EBITDA Lower than 3.65 Other Onerous Debt (1) Equal to or lower than 1.30 Adjusted Current Ratio Higher than 1.00 (1) The contractual definition of “Other Onerous Debts” corresponds to the sum of pension plan obligations and healthcare plan, installment payments of tax debts, and installments payments of debts with the electricity supplier. |
Schedule of borrowings and financing - Credit Limits | Schedule of borrowings and financing - Credit Limits Agent December 31, 2022 (in millions of reais (*) Brazilian Federal Savings Bank 1,079 Brazilian Development Bank – BNDES 255 Inter-American Development Bank – BID 1,178 International Bank for Reconstruction and Development - IBRD 1,259 Other 18 TOTAL 3,789 (*) Brazilian Central Bank’s exchange sell rate as of December 30, 2022 (US$ 1.00 = R$ 5.2177; ¥ 1.00 = R$ 0.03957). |
Taxes recoverable_payable (Tabl
Taxes recoverable/payable (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Taxes Recoverablepayable | |
Current assets | Current assets December 31, 2022 December 31, 2021 Recoverable taxes Income tax and social contribution 206,517 259,902 Withholding income tax (IRRF) on financial investments 33,283 13,041 Other federal taxes 3,106 3,161 Total 242,906 276,104 |
Current liabilities | Current liabilities December 31, 2022 December 31, 2021 Taxes and contributions payable Cofins and Pasep 134,624 111,963 INSS (social security contribution) 44,515 39,902 IRRF (withholding income tax) 63,361 49,468 Other 50,961 55,797 Total 293,461 257,130 |
Deferred taxes and contributi_2
Deferred taxes and contributions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Taxes And Contributions | |
Schedule of deferred taxes | Schedule of deferred taxes December 31, 2022 December 31, 2021 Deferred income tax assets Provisions 560,404 503,374 Pension obligations - G1 141,606 150,577 Donations of underlying asset on concession agreements 46,088 47,589 Credit losses 199,363 183,963 Other 171,798 127,092 Total deferred tax assets 1,119,259 1,012,595 Deferred income tax liabilities Temporary difference on concession of intangible asset (353,817 ) (368,235 ) Capitalization of borrowing costs (457,669 ) (404,931 ) Profit on supply to government entities (346,650 ) (353,262 ) Actuarial gain/loss – G1 Plan (93,561 ) (109,271 ) Construction margin (43,323 ) (46,079 ) Borrowing costs (13,517 ) (14,556 ) Total deferred tax liabilities (1,308,537 ) (1,296,334 ) Deferred tax assets (liabilities), net (189,278 ) (283,739 ) |
Schedule of realization | Schedule of realization December 31, 2022 December 31, 2021 Deferred income tax assets to be realized within 12 months 318,965 280,373 to be realized after one year 800,294 732,222 Total deferred tax asset 1,119,259 1,012,595 Deferred income tax liabilities to be realized within 12 months (25,746 ) (31,777 ) to be realized after one year (1,282,791 ) (1,264,557 ) Total deferred tax liabilities (1,308,537 ) (1,296,334 ) Deferred tax liability, net (189,278 ) (283,739 ) |
Schedule of changes | Schedule of changes Deferred income tax assets December 31, 2021 Variação líquida December 31, 2022 Provisions 503,374 57,030 560,404 Pension obligations - G1 150,577 (8,971 ) 141,606 Donations of underlying asset on concession agreements 47,589 (1,501 ) 46,088 Credit losses 183,963 15,400 199,363 Other 127,092 44,706 171,798 Total 1,012,595 106,664 1,119,259 Deferred income tax liabilities Temporary difference on concession of intangible asset (368,235 ) 14,418 (353,817 ) Capitalization of borrowing costs (404,931 ) (52,738 ) (457,669 ) Profit on supply to governmental entities (353,262 ) 6,612 (346,650 ) Actuarial (gain)/loss – G1 (109,271 ) 15,710 (93,561 ) Construction margin (46,079 ) 2,756 (43,323 ) Borrowing costs (14,556 ) 1,039 (13,517 ) Total (1,296,334 ) (12,203 ) (1,308,537 ) Deferred tax liabilities, net (283,739 ) 94,461 (189,278 ) Deferred income tax assets December 31, 2020 Net change December 31, 2021 Provisions 436,445 66,929 503,374 Pension obligations - G1 154,498 (3,921 ) 150,577 Donations of underlying asset on concession agreements 50,142 (2,553 ) 47,589 Credit losses 155,719 28,244 183,963 Other 134,932 (7,840 ) 127,092 Total 931,736 80,859 1,012,595 Deferred income tax liabilities Temporary difference on concession of intangible asset (388,675 ) 20,440 (368,235 ) Capitalization of borrowing costs (390,211 ) (14,720 ) (404,931 ) Profit on supply to governmental entities (356,513 ) 3,251 (353,262 ) Actuarial (gain)/loss – G1 (48,979 ) (60,292 ) (109,271 ) Construction margin (48,843 ) 2,764 (46,079 ) Borrowing costs (19,231 ) 4,675 (14,556 ) Total (1,252,452 ) (43,882 ) (1,296,334 ) Deferred tax liabilities, net (320,716 ) 36,977 (283,739 ) Deferred income tax assets December 31, 2019 Net change December 31, 2020 Provisions 366,673 69,772 436,445 Pension obligations - G1 157,998 (3,500 ) 154,498 Donations of underlying asset on concession agreements 51,818 (1,676 ) 50,142 Credit losses 145,622 10,097 155,719 Other 183,147 (48,215 ) 134,932 Total 905,258 26,478 931,736 Deferred income tax liabilities Temporary difference on concession of intangible asset (408,732 ) 20,057 (388,675 ) Capitalization of borrowing costs (409,236 ) 19,025 (390,211 ) Profit on supply to governmental entities (372,289 ) 15,776 (356,513 ) Actuarial (gain)/loss – G1 (54,222 ) 5,243 (48,979 ) Construction margin (83,399 ) 34,556 (48,843 ) Borrowing costs (11,376 ) (7,855 ) (19,231 ) Total (1,339,254 ) 86,802 (1,252,452 ) Deferred tax liabilities, net (433,996 ) 113,280 (320,716 ) December 31, 2022 December 31, 2021 December 31, 2020 Opening balance (283,739 ) (320,716 ) (433,996 ) Net change in the year: - corresponding entry to the income statement 78,751 97,269 108,037 - corresponding entry to valuation adjustments to equity (Note 22) 15,710 (60,292 ) 5,243 Total net change 94,461 36,977 113,280 Closing balance (189,278 ) (283,739 ) (320,716 ) |
Reconciliation of the effective tax rate | Reconciliation of the effective tax rate December 31, 2022 December 31, 2021 December 31, 2020 Profit before income taxes 4,272,750 3,170,156 1,326,002 Statutory rate 34 % 34 % 34 % Estimated expense at the statutory rate (1,452,735 ) (1,077,853 ) (450,841 ) Tax benefit of interest on equity 284,920 200,073 126,604 Permanent differences Provision – Law 4,819/1958 – G0 (i) (26,786 ) (22,640 ) (37,675 ) Donations (16,588 ) (16,723 ) (8,672 ) Other differences 59,706 52,856 17,900 Income tax and social contribution (1,151,483 ) (864,287 ) (352,684 ) Current income tax and social contribution (1,230,234 ) (961,556 ) (460,721 ) Deferred income tax and social contribution 78,751 97,269 108,037 Effective rate 27 % 27 % 27 % (i) Permanent difference related to the provision for actuarial liability (Note 22 (ii) and (v)). |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions [abstract] | |
Schedule of lawsuits and proceedings that resulted in provisions | Schedule of lawsuits and proceedings that resulted in provisions December 31, 2022 December 31, 2021 Provisions Escrow deposits Provisions net of deposits Provisions Escrow deposits Provisions net of deposits Customer claims (i) 151,023 (6,226 ) 144,797 168,258 (10,780 ) 157,478 Supplier claims (ii) 257,080 (53 ) 257,027 477,854 (123 ) 477,731 Other civil claims (iii) 99,462 (1,131 ) 98,331 95,601 (2,523 ) 93,078 Tax claims (iv) 79,532 (16,037 ) 63,495 57,509 (2,693 ) 54,816 Labor claims (v) 654,277 (13,979 ) 640,298 349,962 (15,864 ) 334,098 Environmental claims (vi) 406,872 (36 ) 406,836 331,326 (34 ) 331,292 Total 1,648,246 (37,462 ) 1,610,784 1,480,510 (32,017 ) 1,448,493 Current 924,038 — 924,038 809,821 — 809,821 Noncurrent 724,208 (37,462 ) 686,746 670,689 (32,017 ) 638,672 |
Schedule of changes in provisions | Schedule of changes in provisions December 31, 2021 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used(reversal) December 31,2022 Customer claims (i) 168,258 12,258 21,316 (29,363 ) (21,446 ) 151,023 Supplier claims (ii) 477,854 78,481 56,934 (309,321 ) (46,868 ) 257,080 Other civil claims (iii) 95,601 22,485 13,708 (9,248 ) (23,084 ) 99,462 Tax claims (iv) 57,509 18,216 7,837 (1,568 ) (2,462 ) 79,532 Labor claims (v) 349,962 307,352 131,139 (76,884 ) (57,292 ) 654,277 Environmental claims (vi) 331,326 38,632 48,511 (300 ) (11,297 ) 406,872 Subtotal 1,480,510 477,424 279,445 (426,684 ) (162,449 ) 1,648,246 Escrow deposits (32,017 ) (55,546 ) (4,779 ) 13,832 41,048 (37,462 ) Total 1,448,493 421,878 274,666 (412,852 ) (121,401 ) 1,610,784 December 31, 2020 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used (reversal) December 31, 2021 Customer claims (i) 160,705 32,996 29,685 (30,972 ) (24,156 ) 168,258 Supplier claims (ii) 410,734 92,135 90,788 (71,238 ) (44,565 ) 477,854 Other civil claims (iii) 86,083 15,477 12,850 (10,056 ) (8,753 ) 95,601 Tax claims (iv) 59,678 8,630 8,054 (15,133 ) (3,720 ) 57,509 Labor claims (v) 316,880 100,245 36,373 (66,220 ) (37,316 ) 349,962 Environmental claims (vi) 249,582 40,477 50,957 (33 ) (9,657 ) 331,326 Subtotal 1,283,662 289,960 228,707 (193,652 ) (128,167 ) 1,480,510 Escrow deposits (31,360 ) (39,586 ) (11,852 ) 48,805 1,976 (32,017 ) Total 1,252,302 250,374 216,855 (144,847 ) (126,191 ) 1,448,493 December 31, 2019 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used (reversal) December 31, 2020 Customer claims (i) 253,665 16,465 19,638 (78,640 ) (50,423 ) 160,705 Supplier claims (ii) 153,654 149,566 201,259 (68,801 ) (24,944 ) 410,734 Other civil claims (iii) 93,910 15,944 11,109 (23,009 ) (11,871 ) 86,083 Tax claims (iv) 59,143 4,333 2,737 (1,875 ) (4,660 ) 59,678 Labor claims (v) 325,129 61,782 35,541 (61,039 ) (44,533 ) 316,880 Environmental claims (vi) 192,950 35,392 27,718 — (6,478 ) 249,582 Subtotal 1,078,451 283,482 298,002 (233,364 ) (142,909 ) 1,283,662 Escrow deposits (42,643 ) (12,907 ) (2,225 ) 18,675 7,740 (31,360 ) Total 1,035,808 270,575 295,777 (214,689 ) (135,169 ) 1,252,302 |
Lawsuits deemed as contingent liabilities | Lawsuits deemed as contingent liabilities December 31, 2022 December 31, 2021 Customer claims (i) 200,966 173,875 Supplier claims (ii) 1,147,606 1,521,935 Other civil claims (iii) 1,146,048 852,735 Tax claims (iv) 1,869,583 1,548,781 Labor claims (v) 1,471,423 1,095,841 Environmental claims (vi) 3,302,843 3,201,716 Total 9,138,469 8,394,883 |
Labor and social obligations (T
Labor and social obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Labor And Social Obligations | |
Schedule of employees benefits | Schedule of employees benefits December 31, 2022 December 31, 2021 Salaries and payroll charges 70,089 58,591 Provision for vacation 254,469 226,127 Healthcare plan (i) 70,136 45,915 Provision for profit sharing (ii) 96,227 88,376 Consent Decree (TAC) 6,114 5,723 Knowledge Retention Program (PRC) 1,469 1,884 Total 498,504 426,616 |
Pension plan obligations (Table
Pension plan obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Pension Plan Obligations | |
Schedule of pension plan benefits | Schedule of pension plan benefits December 31, 2022 December 31, 2021 G1 Plan G0 Plan Total G1 Plan G0 Plan Total Present value of the defined benefit obligations (2,715,388 ) (2,002,075 ) (4,717,463 ) (2,764,027 ) (2,192,062 ) (4,956,089 ) Fair value of the plan’s assets 2,567,272 — 2,567,272 2,634,427 — 2,634,427 Total pension plan obligations (deficit) (148,116 ) (2,002,075 ) (2,150,191 ) (129,600 ) (2,192,062 ) (2,321,662 ) |
Schedule of reconciliation of defined benefit obligations | Schedule of reconciliation of defined benefit obligations December 31, 2022 December 31, 2021 G1 Plan G0 Plan Total G1 Plan G0 Plan Total Plan’s liabilities Defined benefit obligation, beginning of the year (2,764,027 ) (2,192,062 ) (4,956,089 ) (3,112,980 ) (2,549,541 ) (5,662,521 ) Current service cost (35,020 ) — (35,020 ) (32,777 ) — (32,777 ) Interest costs (231,745 ) (176,953 ) (408,698 ) (205,707 ) (158,244 ) (363,951 ) Actuarial (gains)/losses recorded as other comprehensive income 126,626 161,766 288,392 414,823 330,337 745,160 Benefits paid 188,778 205,174 393,952 172,614 185,386 358,000 Defined benefit obligation, end of the year (2,715,388 ) (2,002,075 ) (4,717,463 ) (2,764,027 ) (2,192,062 ) (4,956,089 ) Plan’s assets Fair value of the plan’s assets, beginning of the year 2,634,427 — 2,634,427 2,793,927 — 2,793,927 Expected return of the plan’s assets 221,079 — 221,079 184,687 — 184,687 Company’s contributions 39,377 — 39,377 35,368 — 35,368 Participant’s contributions 34,000 — 34,000 30,551 — 30,551 Benefits paid (188,778 ) — (188,778 ) (172,614 ) — (172,614 ) Actuarial gains/(losses) recorded as other comprehensive income (172,833 ) — (172,833 ) (237,492 ) — (237,492 ) Fair value of the plan’s assets, end of the year 2,567,272 — 2,567,272 2,634,427 — 2,634,427 Total pension plan obligations (deficit) (148,116 ) (2,002,075 ) (2,150,191 ) (129,600 ) (2,192,062 ) (2,321,662 ) |
Schedule of (gains)/losses, due to changes in assumptions | Schedule of (gains)/losses, due to changes in assumptions December 31, 2022 December 31, 2021 December 31, 2020 G1 Plan G0 Plan Total G1 Plan G0 Plan Total G1 Plan G0 Plan Total Actuarial gains/(losses) on obligations 126,626 161,766 288,392 414,823 330,337 745,160 64,637 521,331 585,968 Actuarial gains/(losses) recorded as other comprehensive income (172,833 ) — (172,833 ) (237,492 ) — (237,492 ) (80,059 ) — (80,059 ) Total gains/(losses) (46,207 ) 161,766 115,559 177,331 330,337 507,668 (15,422 ) 521,331 505,909 Deferred income tax and social contribution 15,710 — 15,710 (60,292 ) — (60,292 ) 5,243 — 5,243 Equity valuation adjustments (30,497 ) 161,766 131,269 117,039 330,337 447,376 (10,179 ) 521,331 511,152 |
Schedule of amounts recognized in income statement | Schedule of amounts recognized in income statement December 31, 2022 December 31, 2021 December 31, 2020 G1 Plan G0 Plan Total G1 Plan G0 Plan Total G1 Plan G0 Plan Total Cost of service, net 1,020 — 1,020 2,227 — 2,227 4,608 — 4,608 Interest cost rates 231,745 176,953 408,698 205,707 158,244 363,951 208,485 206,262 414,747 Expected return on the plan’s assets (221,079 ) — (221,079 ) (184,687 ) — (184,687 ) (187,317 ) — (187,317 ) Amount received from State of São Paulo (undisputed) — (98,174 ) (98,174 ) — (91,657 ) (91,657 ) — (95,452 ) (95,452 ) Total expenses 11,686 78,779 90,465 23,247 66,587 89,834 25,776 110,810 136,586 |
Obligations’ maturity | Obligations’ maturity December 31, 2022 G1 Plan G0 Plan Payment of benefits expected in 2023 213,318 190,425 Payment of benefits expected in 2024 200,740 177,004 Payment of benefits expected in 2025 192,045 167,075 Payment of benefits expected in 2026 182,039 156,583 Payment of benefits expected in 2027 or after 1,927,246 1,310,988 Total 2,715,388 2,002,075 Duration 12.69 10.40 |
Actuarial assumptions | Actuarial assumptions December 31, 2022 December 31, 2021 December 31, 2020 G1 Plan G0 Plan G1 Plan G0 Plan G1 Plan G0 Plan Discount rate – actual rate (NTN-B) 6.19 6.15 5.53 5.26 3.44 3.07 Inflation rate 5.31 5.31 3.00 3.00 3.25 3.25 Nominal rate of salary growth 7.42 7.42 5.06 5.06 5.32 5.32 Mortality table AT-2000 AT-2000 AT-2000 AT-2000 AT-2000 AT-2000 |
Sensitivity analysis of the defined benefit pension plan assumptions | Sensitivity analysis of the defined benefit pension plan assumptions Impact on the present value of the defined benefit obligations Assumption Change in the assumption G1 G0 Discount rate Increase of 1.0% Decrease of R$ 215,825 Decrease of R$ 159,129 Decrease of 1.0% Increase of R$ 234,447 Increase of R$ 172,859 Life expectation Increase of 1 year Increase of R$ 59,778 Increase of R$ 83,050 Decrease of 1 year Decrease of R$ 58,505 Decrease of R$ 79,449 Wage growth rate Increase of 1.0% Increase of R$ 38,898 Increase of R$ 894 Decrease of 1.0% Decrease of R$ 40,755 Decrease of R$ 937 |
Estimated expenses | Estimated expenses 2023 Cost of services, net 5,997 Regular and extraordinary contributions expected from participants (36,521 ) Interest costs 307,777 Net profitability on financial assets (294,788 ) Expenditures to be recognized by the employer (17,535 ) |
Schedule Of Plans Assets | Schedule Of Plans Assets December 31, 2022 % December 31, 2021 % Total fixed income 1,804,550 70.3 1,613,153 61.2 Total equities 136,582 5.3 261,665 9.9 Total structured investments 498,825 19.4 599,970 22.8 Other 127,315 5.0 159,639 6.1 Fair value of the plan’s assets 2,567,272 100 2,634,427 100 |
Estimated expenses for 2023 | Estimated expenses for 2023 2023 Interest cost rate 225,220 Expense to be recognized 225,220 |
Reconciliation of expenses with pension obligations | Reconciliation of expenses with pension obligations December 31, 2022 December 31, 2021 December 31, 2020 G1 Plan (i) 11,686 23,247 25,776 G0 Plan (ii) 78,779 66,587 110,810 Sabesprev Mais Plan (iii) 25,371 22,406 21,700 VIVEST Plan (iv) 326 160 58 Subtotal 116,162 112,400 158,344 Expenses capitalized in assets (3,359 ) (4,118 ) (4,904 ) Other 5,684 5,527 5,841 Pension plan obligations (Note 29) 118,487 113,809 159,281 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity | |
Share capital | Share capital December 31, 2022 December 31, 2021 Number of shares % Number of shares % State Department of Finance 343,506,664 50.3 343,506,664 50.3 Other shareholders In Brazil (1) 257,339,417 37.6 234,965,971 34.4 Abroad (2) (3) 82,663,788 12.1 105,037,234 15.3 683,509,869 100.0 683,509,869 100.0 (1) As of December 31, 2022, the common shares traded in Brazil were held by 31,351 shareholders. It includes six shares held by Companhia Paulista de Parcerias (CPP), which is controlled by the São Paulo State Government. (2) Shares traded as American Depositary Receipts (ADR) on the New York Stock Exchange, through The Bank New York Mellon, the depositary bank for the Company's ADRs. (3) Each ADR corresponds to 1 share. |
Distribution of earnings | Distribution of earnings 2022 2021 2020 Profit for the year 3,121,267 2,305,869 973,318 (-) Legal reserve - 5% 156,063 115,293 48,666 2,965,204 2,190,576 924,652 Minimum mandatory dividend – 25% 741,301 547,645 231,163 Dividend per share and per ADS 1.08455 0.80122 0.33820 |
Allocation of the profit for the year | Allocation of the profit for the year 2022 2021 2020 Profit (+) Profit for the year 3,121,267 2,305,869 973,318 (-) Legal reserve – 5% 156,063 115,293 48,666 (-) Minimum mandatory dividends 741,301 547,645 231,163 (-) Complementary minimum dividends 130,857 96,700 40,806 Investment reserve recorded 2,093,046 1,546,231 652,683 |
Other comprehensive loss | Other comprehensive loss G1 plan G0 plan Total Balance as of December 31, 2021 212,114 (165,740 ) 46,374 Actuarial gains/(losses) for the year (Note 22) (30,497 ) 161,766 131,269 Balance as of December 31, 2022 181,617 (3,974 ) 177,643 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Schedule of earnings per share, basic and diluted | Schedule of earnings per share, basic and diluted 2022 2021 2020 Earnings attributable to Company’s owners 3,121,267 2,305,869 973,318 Weighted average number of common shares issued 683,509,869 683,509,869 683,509,869 Basic and diluted earnings per share (reais per share) 4.57 3.37 1.42 |
Operating segment information (
Operating segment information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operating Segment Information | |
Schedule of operating segment information | Schedule of operating segment information 2022 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 18,629,959 4,863,752 23,493,711 Gross sales deductions (1,437,991 ) — (1,437,991 ) Net operating revenue 17,191,968 4,863,752 22,055,720 Costs, selling, general and administrative expenses (12,689,051 ) (4,754,383 ) (17,443,434 ) Income from operations before other operating expenses, net and equity accounting 4,502,917 109,369 4,612,286 Other operating income / (expenses), net 8,327 Equity accounting 24,551 Financial result, net (372,414 ) Income from operations before taxes 4,272,750 Depreciation and amortization (2,450,849 ) — (2,450,849 ) Result 2021 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 16,304,206 4,376,739 20,680,945 Gross sales deductions (1,189,884 ) — (1,189,884 ) Net operating revenue 15,114,322 4,376,739 19,491,061 Costs, selling, general and administrative expenses (11,115,383 ) (4,278,337 ) (15,393,720 ) Income from operations before other operating expenses, net and equity accounting 3,998,939 98,402 4,097,341 Other operating income / (expenses), net (21,841 ) Equity accounting 22,079 Financial result, net (927,423 ) Income from operations before taxes 3,170,156 Depreciation and amortization (2,253,322 ) — (2,253,322 ) (i) See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information; (ii) Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 14 (b). Result 2020 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 15,157,780 3,716,616 18,874,396 Gross sales deductions (1,076,855 ) — (1,076,855 ) Net operating revenue 14,080,925 3,716,616 17,797,541 Costs, selling, general and administrative expenses (9,796,821 ) (3,630,139 ) (13,426,960 ) Income from operations before other operating expenses, net and equity accounting 4,284,104 86,477 4,370,581 Other operating income / (expenses), net 107,656 Equity accounting 14,136 Financial result, net (3,166,371 ) Income from operations before taxes 1,326,002 Depreciation and amortization (2,037,112 ) — (2,037,112 ) (i) See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information; (ii) Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 14 (b). |
Insurance (Tables)
Insurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance | |
The Company insurance was as follows | The Company insurance was as follows Coverage Specified risks – fire 2,185,827 Engineering risk 2,275,490 Guarantee insurance for escrow deposit and traditional guarantee (*) 600,000 Civil liability– D&O (Directors and Officers) 100,000 Civil liability – works 149,630 Civil liability – operations 15,000 Other 29,038 Total 5,354,985 (*) SABESP has an agreement that allows issuing policies that total such insured amount. Of the total, R$ 167.8 thousand in policies with guarantee insurance were issued. |
Operating revenue (Tables)
Operating revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operating Revenue | |
Revenue from sanitation services | Revenue from sanitation services 2022 2021 2020 Metropolitan Region of São Paulo 13,318,803 11,529,229 10,722,384 Regional Systems 5,311,156 4,774,977 4,435,396 Total 18,629,959 16,304,206 15,157,780 |
Reconciliation from gross operating income to net operating income | Reconciliation from gross operating income to net operating income 2022 2021 2020 Revenue from sanitation services (i) 18,629,959 16,304,206 15,157,780 Construction revenue 4,863,752 4,376,739 3,716,616 Sales tax (1,363,628 ) (1,121,905 ) (1,009,358 ) Regulatory, Control and Oversight Fee (TRCF) (74,363 ) (67,979 ) (67,497 ) Net revenue 22,055,720 19,491,061 17,797,541 (i) Includes the amount of R$ 92,232 80,329 |
Operating costs and expenses (T
Operating costs and expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operating Costs And Expenses | |
Schedule of operating costs and expenses | Schedule of operating costs and expenses 2022 2021 2020 Operating costs Salaries, payroll charges and benefits (2,285,765 ) (2,026,202 ) (1,958,395 ) Pension plan obligations (29,796 ) (36,771 ) (37,281 ) Construction costs (Note 26) (4,754,383 ) (4,278,337 ) (3,630,139 ) General supplies (369,381 ) (314,111 ) (244,054 ) Treatment supplies (598,993 ) (364,542 ) (338,756 ) Outsourced services (1,724,347 ) (1,517,196 ) (1,251,839 ) Electricity (1,497,644 ) (1,462,776 ) (1,214,831 ) General expenses (831,503 ) (717,352 ) (622,113 ) Depreciation and amortization (2,259,091 ) (2,082,755 ) (1,882,259 ) (14,350,903 ) (12,800,042 ) (11,179,667 ) Selling expenses Salaries, payroll charges and benefits (306,864 ) (265,435 ) (271,565 ) Pension plan obligations (4,021 ) (4,868 ) (5,059 ) General supplies (7,121 ) (7,976 ) (5,471 ) Outsourced services (418,632 ) (343,763 ) (290,512 ) Electricity (1,001 ) (1,340 ) (1,200 ) General expenses (107,313 ) (136,107 ) (118,278 ) Depreciation and amortization (67,015 ) (66,390 ) (59,201 ) (911,967 ) (825,879 ) (751,286 ) Bad debt expense, net of recoveries (Note 10 (c)) (782,057 ) (643,730 ) (444,826 ) Administrative expenses Salaries, payroll charges and benefits (284,562 ) (250,557 ) (257,829 ) Pension plan obligations (84,670 ) (72,170 ) (116,941 ) General supplies (23,664 ) (11,209 ) (14,237 ) Outsourced services (250,293 ) (250,801 ) (230,054 ) Electricity (1,896 ) (1,715 ) (1,359 ) General expenses (548,626 ) (357,564 ) (257,693 ) Depreciation and amortization (124,743 ) (104,177 ) (95,652 ) Tax expenses (80,053 ) (75,876 ) (77,416 ) (1,398,507 ) (1,124,069 ) (1,051,181 ) Operating costs and expenses Salaries, payroll charges and benefits (2,877,191 ) (2,542,194 ) (2,487,789 ) Pension obligations (118,487 ) (113,809 ) (159,281 ) Construction costs (Note 26) (4,754,383 ) (4,278,337 ) (3,630,139 ) General supplies (400,166 ) (333,296 ) (263,762 ) Treatment supplies (598,993 ) (364,542 ) (338,756 ) Outsourced services (2,393,272 ) (2,111,760 ) (1,772,405 ) Electricity (1,500,541 ) (1,465,831 ) (1,217,390 ) General expenses (1,487,442 ) (1,211,023 ) (998,084 ) Depreciation and amortization (2,450,849 ) (2,253,322 ) (2,037,112 ) Tax expenses (80,053 ) (75,876 ) (77,416 ) Bad debt expense, net of recoveries (Note 10 (c)) (782,057 ) (643,730 ) (444,826 ) (17,443,434 ) (15,393,720 ) (13,426,960 ) |
Financial Income (Expenses) (Ta
Financial Income (Expenses) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Income | |
Schedule of financial income (expenses) | Schedule of financial income (expenses) 2022 2021 2020 Financial expenses Interest and charges on borrowings and financing – local currency (954,744 ) (517,235 ) (348,050 ) Interest and charges on borrowings and financing – foreign currency (47,139 ) (46,793 ) (136,257 ) Other financial expenses (364,117 ) (315,013 ) (328,413 ) Income tax over international remittance — — (15,134 ) Inflation adjustment on borrowings and financing (190,202 ) (225,791 ) (86,938 ) Other inflation adjustments (183,966 ) (172,632 ) (142,313 ) Interest and inflation adjustments on provisions (216,098 ) (170,831 ) (267,654 ) Total financial expenses (1,956,266 ) (1,448,295 ) (1,324,759 ) Financial income Inflation adjustment gains 541,516 198,907 120,957 Income on financial investments 417,129 150,632 75,522 Interest income 195,274 145,866 162,576 Cofins and Pasep (62,405 ) (23,038 ) (22,328 ) Other 17 41 4 Total financial income 1,091,531 472,408 336,731 Financial income (expenses), net before exchange rate changes (864,735 ) (975,887 ) (988,028 ) Exchange gains (losses) Exchange rate changes on borrowings and financing 491,918 48,522 (2,180,241 ) Exchange rate changes on assets 301 (36 ) 1,894 Other exchange rate changes 102 (22 ) 4 Exchange rate changes, net 492,321 48,464 (2,178,343 ) Financial income (expenses), net (372,414 ) (927,423 ) (3,166,371 ) |
Other operating income (expen_2
Other operating income (expenses), net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Operating Income Expenses Net | |
Schedule of other operating income (expenses), net | Schedule of other operating income (expenses), net 2022 2021 2020 Other operating income, net 64,638 71,877 70,288 Other operating expenses (56,311 ) (93,718 ) 37,368 Other operating income (expenses), net 8,327 (21,841 ) 107,656 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments | |
Below, the main unrecorded committed amounts as of December 31, 2020: | Below, the main unrecorded committed amounts as of December 31, 2020: 1 year 1-3 years 3-5 years More than 5 years Total Contractual obligations – Expenses 1,476,267 1,379,448 271,242 657,401 3,784,358 Contractual obligations – Investments 3,091,768 3,125,523 1,153,532 172,782 7,543,605 Total 4,568,035 4,504,971 1,424,774 830,183 11,327,963 |
Supplemental cash flow inform_2
Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information | |
Schedule of supplemental cash flow information | Schedule of supplemental cash flow information 2022 2021 2020 Total additions to contract assets (Note 14) 5,240,528 4,759,789 3,948,158 Total additions to intangible assets (Note 15 (b)) 75,400 172,961 411,285 Items not affecting cash (see breakdown below) (1,765,391 ) (1,236,081 ) (1,095,786 ) Total additions to intangible assets as per statement of cash flows 3,550,537 3,696,669 3,299,657 Investments and financing operations affecting intangible assets but not cash: Interest capitalized in the year (Note 14 (a)) 622,803 300,792 238,330 Contractors payable 414,645 218,523 142,514 Program contract commitments — — 4,422 Performance agreements 576,392 478,177 314,720 Right of use 42,182 140,187 28,549 Construction margin (Note 26) 109,369 98,402 85,976 Agreement with the municipality of Mauá — — 280,774 Total 1,765,391 1,236,081 1,095,786 |
Events after the reporting pe_2
Events after the reporting period (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Events After Reporting Period | |
Schedule of extraordinary tariff revision | Schedule of extraordinary tariff revision Stages Date Publication of the Preliminary Technical Note of SABESP’s Extraordinary Tariff Revision 12/22/2022 Public Consultation 12/22/2022 01/06/2023 Public Hearing 01/05/2023 Publication of the Detailed Report 03/06/2023 Publication of the Final Technical Note and Resolution of SABESP’s Extraordinary Tariff Revision Until 04/08/2023 |
Operations (Details)
Operations (Details) - Sao Paulo [Member] R$ in Thousands, Municipalities in Thousands | 12 Months Ended | |
Dec. 31, 2022 BRL (R$) Municipalities | Dec. 31, 2021 BRL (R$) Municipalities | |
IfrsStatementLineItems [Line Items] | ||
Total municipalities that have already signed contracts | Municipalities | 351 | 342 |
Balance – intangible and contract assets | R$ 45292307 | R$ 42260091 |
Percentage of intangible and contract assets | 94.49% | 93.80% |
Revenue from sanitation services (excluding construction revenue) | R$ 17767561 | R$ 15490808 |
Percentage of revenue from sanitation services (excluding construction revenue) | 95.37% | 95.01% |
Municipalities with expired contracts: | Municipalities | 1 | 8 |
Balance – intangible and contract assets | R$ 11519 | R$ 214329 |
Percentage of intangible and contract assets | 0.02% | 0.48% |
Revenue from sanitation services (excluding construction revenue) | R$ 15236 | R$ 41194 |
Percentage of revenue from sanitation services (excluding construction revenue) | 0.08% | 0.25% |
Municipalities with concession agreements due by 2030: | Municipalities | 23 | 25 |
Balance – intangible and contract assets | R$ 1072138 | R$ 1127920 |
Percentage of intangible and contract assets | 2.24% | 2.50% |
Revenue from sanitation services (excluding construction revenue) | R$ 711452 | R$ 653408 |
Percentage of revenue from sanitation services (excluding construction revenue) | 3.82% | 4.01% |
Municipality of São Paulo: | ||
Percentage of intangible and contract assets | 43.33% | 43.11% |
Percentage of revenue from sanitation services (excluding construction revenue) | 45.14% | 44.45% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | |
Description of accrued income tax | The income tax was accrued at rate of 15%, plus 10% surtax on taxable income exceeding R$ 240 |
Social contribution accrued rate | 9% |
Annual revenue calculated rate | 50% |
Programa De Formacao Do Patrimonio Do Servidor Publico [Member] | |
IfrsStatementLineItems [Line Items] | |
Sanitation services rate | 1.65% |
Contribuicao Para O Financiamentoda Seguridade Social [Member] | |
IfrsStatementLineItems [Line Items] | |
Sanitation services rate | 7.60% |
Programa De Formacao Do Patrimonio Do Servidor Publico 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Sanitation services rate | 0.65% |
Contribuicao Para O Financiamentoda Seguridade Social 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Sanitation services rate | 4% |
Changes in accounting practic_3
Changes in accounting practices and disclosures (Details) | 12 Months Ended |
Dec. 31, 2022 | |
I F R S 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | IFRS 17 – Insurance Contracts |
Description | Establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. IFRS 17 will supersede IFRS 4 Insurance Contracts. |
Impact | The Company does not expect effects from adopting this standard. |
Amendments To I F R S 10 I A S 28 And [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IFRS 10 - Consolidated Statements and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture |
Description | Clarify situations that involve the sale or contribution of assets between an investor and its associate or joint venture. |
Impact | The Company is assessing the impacts and effects of the amendments; however, it does not expect any effects from the amendments. |
Amendments To I A S [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current |
Description | These amendments to IAS 1 only affect the presentation of liabilities as current or non-current in the statement of financial position and not the amount or the time of recognition of any asset, liability, income or expense, or the information disclosed on such items. In addition, clarify that the classification of liabilities as current or non-current is based on the rights existing at the balance sheet date, specify that the classification is not affected by the expectations on whether an entity will exercise its right to postpone the settlement of the liability and introduce the definition of 'settlement' to clarify that settlement refers to the transfer to a counterparty, of cash, equity instruments, other assets or services. |
Impact | The Company does not expect any impacts from this standard. |
Amendments To I A S Eightheen [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IAS 1 – Presentation of Financial Statements1 and IFRS Practice Statement 2 – Making Materiality Judgments – Disclosure of Accounting Policies |
Description | The amendments modify the requirements contained in IAS 1 regarding the disclosure of accounting policies. The amendments replace all the examples of the term “significant accounting policies” with “information of material accounting policies”. Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, could reasonably influence decisions that the main users make based on the financial statements. The supporting paragraphs have also been amended to clarify that accounting policy information related to transactions, other events, or conditions that are not material is, therefore, irrelevant and does not need to be disclosed. The Board has also prepared guidance and examples to explain and demonstrate the application of the “four-step materiality process” described in IFRS Practice Statement 2. |
Impact | The Company does not expect any impacts from these changes. |
Amendments To I A S Eight [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IAS 8 - Accounting Policies, Changes in Estimates, and Errors—Definition of Accounting Estimates |
Description | The amendment supersede the definition of changes in the accounting estimates with the definition of accounting estimates. According to the new definition, accounting estimates are “monetary amounts in the financial statements subject to measure uncertainty”. The definition of change in accounting estimates has been deleted, however, the Board maintained the concept of changes in accounting estimates in the Standard with the following clarifications: • A change in an accounting estimate that results from new information or new events does not mean an error correction; • The effects of the change in data or measurement technique used to create an accounting estimate correspond to changes in accounting estimates if they do not result from the correction of prior period errors. |
Impact | The Company does not expect effects from these amendments. |
Amendments To I A S Twelve [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IAS 12 – Income Taxes – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (“single transaction”) |
Description | The amendments introduce an additional exception to the exemption of first-time recognition. According to the amendments, an entity does not apply the exemption of first-time recognition for transactions resulting in equal taxable and deductible temporary differences. |
Impact | The Company does not expect effects from these amendments. |
Risk Management (Details)
Risk Management (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Total exposure | R$ 2809441 | R$ 3321489 |
Total foreign currency-denominated borrowings | 2,775,758 | 3,296,153 |
United States of America, Dollars | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | 996,695 | 912,624 |
Interest and charges from borrowings and financing | 6,985 | 4,121 |
Borrowing cost | (31,037) | (22,486) |
United States of America, Dollars | Foreign currency | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | 191,022 | 163,538 |
Japan, Yen | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | 1,795,259 | 2,390,774 |
Interest and charges from borrowings and financing | 10,502 | 13,970 |
Borrowing cost | (2,646) | (2,850) |
Japan, Yen | Foreign currency | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | R$ 45369189 | R$ 49324813 |
Risk Management (Details 1)
Risk Management (Details 1) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
United States of America, Dollars | ||
IfrsStatementLineItems [Line Items] | ||
Exchange rate | $ 5.2177 | $ 5.5805 |
Exchange rate variation | (6.50%) | |
Japan, Yen | ||
IfrsStatementLineItems [Line Items] | ||
Exchange rate | $ 0.03957 | $ 0.04847 |
Exchange rate variation | (18.40%) |
Risk Management (Details 2)
Risk Management (Details 2) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 BRL (R$) Number | Dec. 31, 2021 Number | ||
Probable Scenario [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total effect on net financial result in R$ - gain/(loss) | R$ | [1] | R$ 121598 | |
United States of America, Dollars | Probable Scenario [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net currency exposure | R$ | [1] | R$ 191022 | |
Currency rate | Number | [1] | 5.2177 | |
Exchange rate estimated according to the scenario | Number | [1] | 5.2700 | |
Differences between the rates | [1] | 0.0523% | |
Effect on net financial result R$ - gain/(loss) | R$ | [1] | R$ 9990 | |
Japan, Yen | |||
IfrsStatementLineItems [Line Items] | |||
Exchange rate estimated according to the scenario | Number | 0.03957 | 0.04847 | |
Japan, Yen | Probable Scenario [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net currency exposure | R$ | [1] | R$ 45369189 | |
Currency rate | Number | [1] | 0.03957 | |
Exchange rate estimated according to the scenario | Number | [1] | 0.04203 | |
Differences between the rates | [1] | 0.00246% | |
Effect on net financial result R$ - gain/(loss) | R$ | [1] | R$ 111608 | |
[1]For the probable scenario in U.S. dollars and Yen, the exchange rates estimated for December 31, 2023, were used, according to the Focus-BACEN and B3's Benchmark Rate report, of December 31, 2022, respectively |
Risk Management (Details 3)
Risk Management (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Borrowings | R$ 16814754 | R$ 14904899 | |
Certificado De Deposito Interbancario [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings | [1] | 9,251,150 | 7,612,299 |
Interest Benchmark Rates [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings | [2] | 1,635,587 | 1,638,079 |
Indice Nacional De Precos Ao Consumidor Amplos [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings | [3] | 3,073,435 | 3,019,459 |
Taxa De Juros A Longo Prazos [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings | [4] | 1,433,029 | 1,478,740 |
London Interbank Offered Rates [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings | [5] | 996,697 | 912,626 |
Interest And Charge [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings | R$ 424856 | R$ 243696 | |
[1]CDI – (Certificado de Depósito Interbancário), an interbank deposit certificate[2]TR – Interest Benchmark Rate[3]IPCA – (Índice Nacional de Preços ao Consumidor Amplo), a consumer price index[4]TJLP – (Taxa de Juros a Longo Prazo), a long-term interest rate index[5]SOFR – Secured Overnight Financing Rate |
Risk Management (Details 4)
Risk Management (Details 4) | 12 Months Ended |
Dec. 31, 2022 | |
Banco De Brasil [Member] | Moodys [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AAA.br |
Banco Santander Brasil [Member] | Standard Poors [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | brAAA |
Banco Santander Brasil [Member] | Moodys [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AAA.br |
Caixa Economica Federal [Member] | Standard Poors [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | brAAA |
Caixa Economica Federal [Member] | Moodys [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AAA.br |
Banco Bradesco [Member] | Standard Poors [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | brAAA |
Banco Bradesco [Member] | Moodys [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AAA.br |
Itau Unibanco Holding [Member] | Moodys [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AAA.br |
Banco B V [Member] | Moodys [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AA.br |
Banco B V [Member] | Standard Poors [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | brAAA |
Fitch [Member] | Banco De Brasil [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AA(bra) |
Fitch [Member] | Caixa Economica Federal [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AA(bra) |
Fitch [Member] | Banco Bradesco [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AAA(bra) |
Fitch [Member] | Itau Unibanco Holding [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AAA(bra) |
Fitch [Member] | Banco B T G Pactual S [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AA(bra) |
Moodys [Member] | Banco B T G Pactual S [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | AAA.br |
Standard Poors [Member] | Banco B T G Pactual S [Member] | |
IfrsStatementLineItems [Line Items] | |
Credit rating information of the banks | brAAA |
Risk Management (Details 5)
Risk Management (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Cash and cash equivalents and financial investments | R$ 3545358 | R$ 3151314 | |
Banco B V [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Current accounts and investment funds | 289,908 | 262,465 | |
A A Plus Bra [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash and cash equivalents and financial investments | 2,237,629 | 1,905,810 | |
A A A Bra [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash and cash equivalents and financial investments | 1,011,685 | 970,474 | |
Others [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash and cash equivalents and financial investments | [1] | R$ 296044 | R$ 275030 |
[1]As of December 31, 2022, this category includes R$ 289,908 262,465 |
Risk Management (Details 6)
Risk Management (Details 6) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | R$ 31919116 | |
Trade payables and contractors | 430,946 | |
Services payable | 723,242 | R$ 469027 |
Public-Private Partnership – PPP | 5,834,837 | |
Program Contract Commitments | 117,070 | |
Total | 39,025,211 | R$ 7956 |
Twenty Twenty Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | 3,640,245 | |
Trade payables and contractors | 430,946 | |
Services payable | 723,242 | |
Public-Private Partnership – PPP | 517,681 | |
Program Contract Commitments | 100,022 | |
Total | 5,412,136 | |
Twenty Twenty Three [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | 3,740,510 | |
Trade payables and contractors | ||
Services payable | ||
Public-Private Partnership – PPP | 423,568 | |
Program Contract Commitments | 1,174 | |
Total | 4,165,252 | |
Twenty Twenty Four [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | 3,790,915 | |
Trade payables and contractors | ||
Services payable | ||
Public-Private Partnership – PPP | 386,767 | |
Program Contract Commitments | 1,174 | |
Total | 4,178,856 | |
Twenty Twenty Five [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | 3,503,169 | |
Trade payables and contractors | ||
Services payable | ||
Public-Private Partnership – PPP | 386,767 | |
Program Contract Commitments | 1,174 | |
Total | 3,891,110 | |
Twenty Twenty Six [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | 3,821,448 | |
Trade payables and contractors | ||
Services payable | ||
Public-Private Partnership – PPP | 386,767 | |
Program Contract Commitments | 1,174 | |
Total | 4,209,389 | |
Twenty Twenty Seven [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing | 13,422,829 | |
Trade payables and contractors | ||
Services payable | ||
Public-Private Partnership – PPP | 3,733,287 | |
Program Contract Commitments | 12,352 | |
Total | R$ 17168468 |
Risk Management (Details 7)
Risk Management (Details 7) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Exposure interest rate risk | R$ 2809441 | R$ 3321489 |
Probable Scenario [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities | (1,282,010) | |
Exposure interest rate risk | (1,014,723) | |
Probable Scenario [Member] | Interest rate risk [member] | Financial Income [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Assets | 226,781 | |
Scenario I [Member] | Interest rate risk [member] | Interest To Be Incurred [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities | (1,241,504) | |
C D I [Member] | Exposure [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Assets | 1,689,876 | |
Liabilities | (9,251,150) | |
Exposure interest rate risk | R$ 7561274 | |
C D I [Member] | Probable Scenario [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Interest Rates During The Year1 | 13.42% | |
Interest Rates During The Year | 13.42% | |
T R [Member] | Exposure [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities | R$ 1635587 | |
T R [Member] | Probable Scenario [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Interest Rates During The Year | 0.0205% | |
T R [Member] | Probable Scenario [Member] | Interest rate risk [member] | Expenses To Be Incurred [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities | R$ 335 | |
I P C A [Member] | Exposure [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities | R$ 3073435 | |
I P C A [Member] | Probable Scenario [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Interest Rates During The Year | 5.3128% | |
I P C A [Member] | Probable Scenario [Member] | Interest rate risk [member] | Expenses To Be Incurred [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities | R$ 163285 | |
T J L P [Member] | Exposure [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities | R$ 1433029 | |
T J L P [Member] | Probable Scenario [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Interest Rates During The Year | 720% | |
T J L P [Member] | Probable Scenario [Member] | Interest rate risk [member] | Interest To Be Incurred [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities | R$ 103178 | |
L I B O R [Member] | Exposure [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities | R$ 996697 | |
L I B O R [Member] | Probable Scenario [Member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Interest Rates During The Year | 0.0491% | |
L I B O R [Member] | Probable Scenario [Member] | Interest rate risk [member] | Interest To Be Incurred [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Liabilities | R$ 489 |
Risk Management (Details 8)
Risk Management (Details 8) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Risk Management | ||||
Total borrowings and financing (Note 17) | R$ 18958671 | R$ 17723836 | R$ 17258624 | R$ 13244709 |
(-) Cash and cash equivalents (Note 7) | (1,867,485) | (717,929) | ||
(-) Financial investments (Note 8) | (1,677,873) | (2,433,385) | ||
Net debt | 15,413,313 | 14,572,522 | ||
Total equity | 27,333,533 | 24,931,859 | ||
Total capital (shareholders + providers of capital) | R$ 42746846 | R$ 39504381 | ||
Leverage ratio | 36% | 37% |
Risk Management (Details 9)
Risk Management (Details 9) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Cash and cash equivalents | R$ 1867485 | R$ 717929 | R$ 396401 | R$ 2253210 |
Financial investments | 1,677,873 | 2,433,385 | ||
Restricted cash | 37,474 | 28,467 | ||
Trade receivables | 3,277,808 | 2,918,311 | ||
Water National Agency - ANA | 9,193 | 20,666 | ||
Other receivables | 212,674 | 226,242 | ||
Fair Values [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cash and cash equivalents | 1,867,485 | 717,929 | ||
Financial investments | 1,677,873 | 2,433,385 | ||
Restricted cash | 37,474 | 28,467 | ||
Trade receivables | 3,277,808 | 2,918,311 | ||
Water National Agency - ANA | 9,193 | 20,666 | ||
Other receivables | R$ 212674 | R$ 226242 |
Risk Management (Details 10)
Risk Management (Details 10) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Borrowings and financing | R$ 18958671 | R$ 17723836 | R$ 17258624 | R$ 13244709 |
Trade payables and contractors | 430,946 | 236,763 | ||
Services payable | 723,242 | 469,027 | ||
Program contract commitments | 112,385 | 122,647 | ||
Public-Private Partnership - PPP | 2,959,181 | 3,060,185 | ||
Fair Values [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Borrowings and financing | 19,260,133 | 17,947,954 | ||
Trade payables and contractors | 430,946 | 236,763 | ||
Services payable | 723,242 | 469,027 | ||
Program contract commitments | 112,385 | 122,647 | ||
Public-Private Partnership - PPP | R$ 2959181 | R$ 3060185 |
Risk Management (Details Narrat
Risk Management (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Risk Management | ||
Total exposure | R$ 2809441 | R$ 3321489 |
Percentage of decrease in currency due to debt | 15.80% | |
Liabilities related to exchange rate variation of borrowings and financing contracts | R$ 488614 | 38,324 |
Income before taxes | 280,944 | 332,149 |
Effects on profit for the year before taxes | R$ 168148 | R$ 149049 |
Leverage ratio | 36% | 37% |
Financial instrument assets receivables from related parties | R$ 1156743 | R$ 818552 |
Reimbursement of additional retirement and pension plan | R$ 1060040 | R$ 741910 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents [abstract] | ||||
Cash and banks | R$ 139844 | R$ 146853 | ||
Cash equivalents | 1,727,641 | 571,076 | ||
Total | R$ 1867485 | R$ 717929 | R$ 396401 | R$ 2253210 |
Cash and cash equivalents (De_2
Cash and cash equivalents (Details Narrative) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Certificado De Deposito Interbancario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Average yield of cash equivalents | 0.9569 | 0.9600 |
Financial investments (Details)
Financial investments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Financial investments | R$ 1677873 | R$ 2433385 |
Banco B V [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial investments | 289,909 | 262,465 |
Banco Itau S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial investments | 403,732 | 366,906 |
Banco Bradesco S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial investments | 578,752 | 524,791 |
Banco B T G Pactual S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial investments | 404,363 | 367,361 |
Bancodobrasilsa One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial investments | R$ 1117 | R$ 911862 |
Financial investments (Details
Financial investments (Details Narrative) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Certificado De Deposito Interbancario [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Average yield of financial investments | 102.90% | 101.57% |
Restricted cash (Details)
Restricted cash (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Restricted cash | R$ 37474 | R$ 28467 | |
Agreementwiththe Sao Paulo Municipal Government [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Restricted cash | [1] | 30,231 | 21,464 |
Brazilian Federal Savings Bank Escrow Deposites [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Restricted cash | 433 | 740 | |
Other One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Restricted cash | R$ 6810 | R$ 6263 | |
[1]Refers to the amount deducted from the transfer 7.5% of the revenue earned in the municipality to the Municipal Fund for Environmental Sanitation and Infrastructure, corresponding to eventual amounts unpaid by direct management bodies, foundations and government agencies, as established in the agreement entered into with the municipal government of São Paulo. |
Trade receivables (Details)
Trade receivables (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Subtotal | R$ 4706325 | R$ 4198399 | |
Allowance for doubtful accounts | (1,428,517) | (1,280,088) | |
Total trade receivables | 3,277,808 | 2,918,311 | |
Current | 3,062,574 | 2,695,077 | |
Noncurrent | 215,234 | 223,234 | |
Trade receivables | 3,277,808 | 2,918,311 | |
Private Sector [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | 2,704,332 | 2,556,639 | |
Government Entities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | 993,318 | 873,523 | |
Wholesale Municipal Governments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | [1] | 49,415 | 28,044 |
General And Special Customers [Member] | Private Sector [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | [2],[3] | 2,287,782 | 2,042,023 |
Agreements [Member] | Private Sector [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | [4] | 416,550 | 514,616 |
Agreements [Member] | Government Entities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | [4] | 372,943 | 278,844 |
Municipal [Member] | Government Entities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | 609,731 | 586,810 | |
Federal [Member] | Government Entities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | 10,644 | 7,869 | |
Mogi Das Cruzes [Member] | Wholesale Municipal Governments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | [1] | 4,048 | 3,580 |
Sao Caetano Do Sul [Member] | Wholesale Municipal Governments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | [1] | 45,367 | 24,464 |
Unbilled Supply [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | R$ 959260 | R$ 740193 | |
[1]Wholesale basis customers - municipal governments - This balance refers to invoices issued as a result of services provided to municipalities, which are responsible for distributing to, billing and charging final customers.[2]General customers - residential and small and mid-sized companies;[3]Special customers - large consumers, commercial, industries, condominiums and special billing customers (fixed demand agreements, industrial waste, wells, among others);[4]Agreements - installment payments of past-due receivables, plus inflation adjustment and interest, according to the agreements; |
Trade receivables (Details 1)
Trade receivables (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Current | R$ 2244754 | R$ 1896535 |
Past-due | 2,461,571 | 2,301,864 |
Total | 4,706,325 | 4,198,399 |
Not later than one month [member] | ||
IfrsStatementLineItems [Line Items] | ||
Past-due | 489,709 | 502,164 |
Later than one month and not later than two months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Past-due | 248,128 | 267,723 |
Later Than Two Month And Not Later Than Three Months [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Past-due | 165,306 | 182,977 |
Later Than Three Month And Not Later Than Four Months [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Past-due | 150,941 | 155,018 |
Later Than Four Month And Not Later Than Six Months [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Past-due | 281,530 | 258,718 |
Later than six months and not later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Past-due | 58,702 | 95,751 |
Later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Past-due | R$ 1067255 | R$ 839513 |
Trade receivables (Details 2)
Trade receivables (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Trade Receivables | |||
Balance at beginning of the year | R$ 1280088 | R$ 1157619 | R$ 1042015 |
Losses | 209,360 | 182,547 | 176,776 |
Recoveries | (60,931) | (60,078) | (61,172) |
Balance at the end of the year | 1,428,517 | 1,280,088 | 1,157,619 |
Write-offs | (636,366) | (508,055) | (329,512) |
(Losses)/reversal with state entities - related parties | 2,738 | (13,206) | 290 |
(Losses) with the private sector / government entities | (209,360) | (182,547) | (176,776) |
Recoveries | 60,931 | 60,078 | 61,172 |
Amount recorded expense (Note 29) | R$ 782057 | R$ 643730 | R$ 444826 |
Trade receivables (Details 3)
Trade receivables (Details 3) R$ in Thousands | Dec. 31, 2022 BRL (R$) |
IfrsStatementLineItems [Line Items] | |
Judicial bonds | R$ 2807318 |
Municpality Of Sao Paulo [Member] | |
IfrsStatementLineItems [Line Items] | |
Judicial bonds | 2,656,113 |
Municpalityof Cotia [Member] | |
IfrsStatementLineItems [Line Items] | |
Judicial bonds | 103,729 |
Municpalityof Cachoeira Paulista [Member] | |
IfrsStatementLineItems [Line Items] | |
Judicial bonds | 13,672 |
Others [Member] | |
IfrsStatementLineItems [Line Items] | |
Judicial bonds | R$ 33804 |
Trade receivables (Details Narr
Trade receivables (Details Narrative) R$ in Thousands | Dec. 31, 2022 BRL (R$) |
Trade Receivables | |
Judicial bonds | R$ 2807318 |
Related-Party Balances and Tr_3
Related-Party Balances and Transactions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 18, 2015 |
IfrsStatementLineItems [Line Items] | |||
Accounts receivable, current | R$ 205793 | R$ 173657 | R$ 696283 |
Accounts receivable, current | (205,793) | (173,657) | R$ 696283 |
Accounts receivable, noncurrent | 950,950 | 644,895 | |
Total receivables | 1,156,743 | 818,552 | |
Total | 1,156,743 | 818,552 | |
Liabilities | 29,874,232 | 28,233,626 | |
Sanitation Services [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accounts receivable, current | 144,937 | 127,614 | |
Accounts receivable, current | (144,937) | (127,614) | |
Total | 96,703 | 76,642 | |
Allowance For Loss [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accounts receivable, current | 49,595 | 52,333 | |
Accounts receivable, current | (49,595) | (52,333) | |
Monthly Flow Paymentsiiandvi [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accounts receivable, current | 13,376 | 11,930 | |
Accounts receivable, current | (13,376) | (11,930) | |
Reimbursement G E S P 2015 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accounts receivable, current | 97,075 | 86,446 | |
Accounts receivable, current | (97,075) | (86,446) | |
Accounts receivable, noncurrent | 949,589 | 643,534 | |
Agreement For The Installment Payment Of Sanitation Services [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Accounts receivable, noncurrent | 1,361 | 1,361 | |
Reimbursement For Retirement And Pension Benefits Paid [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total | 1,060,040 | 741,910 | |
Interest On Capital Payable [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Liabilities | R$ 372550 | R$ 275240 |
Related-Party Balances and Tr_4
Related-Party Balances and Transactions (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Revenues | R$ 22055720 | R$ 19491061 | R$ 17797541 |
Sanitation Services 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | 661,955 | 522,608 | 501,756 |
Payments Received Related Parties [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | (632,501) | (439,349) | (520,881) |
Payment Received From Reimbursement [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Revenues | R$ 186690 | R$ 179787 | R$ 173874 |
Related-Party Balances and Tr_5
Related-Party Balances and Transactions (Details Narrative) - BRL (R$) | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 31, 2022 | Jul. 22, 2022 | Apr. 05, 2017 | Mar. 18, 2015 | |
IfrsStatementLineItems [Line Items] | |||||||
Disputed amounts receivable | R$ 1482140000 | R$ 1375137000 | |||||
Actuarial liability amount | 2,002,075,000 | 2,192,062,000 | |||||
Agreement transaction amount | R$ 1012310000 | ||||||
Accounts receivable, current | R$ 205793000 | R$ 173657000 | 696,283,000 | ||||
Inflation adjustment amount | R$ 325561000 | R$ 316027000 | R$ 316027000 | ||||
Number of shares issued | 683,509,869 | 683,509,869 | |||||
Monthly installment payable | R$ 609109000 | ||||||
Receivables in current assets | R$ 97075000 | R$ 86446000 | |||||
Receivables in non-current assets | 949,589,000 | 643,534,000 | |||||
Other liabilities, current | 8,456,000 | ||||||
Other liabilities, non-current | 95,033,000 | 88,264,000 | |||||
Other liabilities, current | 39,025,211,000 | 7,956,000 | |||||
Amount paid | 8,963,000 | ||||||
Expenses related to personnel assigned by SABESP to other state government entities | 800,000 | 734,000 | R$ 2108000 | ||||
Expenses related to personnel by other entities to SABESP | 13,000 | 13,000 | R$ 13000 | ||||
Non-operating assets | 3,613,000 | 3,613,000 | |||||
Net actuarial liability | 148,116,000 | 129,600,000 | |||||
Compensation to Officers | 6,175,000 | 6,369,000 | |||||
Bonus program | 1,305,000 | 1,440,000 | |||||
Total loan agreement related party | 12,953,000 | 11,884,000 | |||||
Total loan agreement related party | 11,021,000 | ||||||
Total loan agreement related party | 242,000 | ||||||
Total loan agreement related party | 2,814,000 | ||||||
Total investment amount | 10,800,000 | ||||||
Investment financed by FEHIDRO | 8,700,000 | ||||||
Investment financed by SABESP | R$ 2100000 | ||||||
Financing interest rate | 3% | ||||||
Financing amount | R$ 5100000 | R$ 4700000 | |||||
Preference shares [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Number of shares issued | 2,221,000 | ||||||
Value of shares issued | R$ 87174000 |
Investments (Details)
Investments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Aug. 20, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
IfrsStatementLineItems [Line Items] | |||||
Equity | R$ 27333533 | R$ 24931859 | |||
Profit for the year | 3,121,267 | 2,305,869 | R$ 973318 | ||
Investments | 104,666 | 73,338 | |||
Investments contribution | 19,869 | ||||
Dividends distributed | (13,092) | ||||
Other comprehensive income | [1] | 17 | |||
Reclassification | 1,203 | ||||
Equity in the earnings of subsidiaries | 24,551 | 22,079 | 14,136 | ||
Reclassification | (1,203) | ||||
Other investments | 6,099 | 6,099 | |||
Overall total | R$ 110765 | R$ 79437 | |||
Number of shares issued | 683,509,869 | 683,509,869 | |||
Seasamm [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity | R$ 59371 | R$ 58421 | 51,514 | ||
Contribution | |||||
Dividends distributed | (13,875) | ||||
Profit for the year | 14,825 | 9,059 | 7,332 | ||
Investments | 21,374 | 21,032 | |||
Investments contribution | |||||
Dividends distributed | (4,995) | ||||
Other comprehensive income | [1] | ||||
Reclassification | |||||
Equity in the earnings of subsidiaries | R$ 5337 | R$ 3261 | R$ 2640 | ||
Interest percentage | 36% | 36% | 36% | ||
Reclassification | |||||
Aguas De Andradinas [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity | R$ 30777 | R$ 29591 | 29,576 | ||
Contribution | |||||
Dividends distributed | |||||
Profit for the year | 1,186 | 2,424 | 778 | ||
Investments | 9,233 | 8,877 | |||
Investments contribution | |||||
Dividends distributed | |||||
Other comprehensive income | [1] | ||||
Reclassification | |||||
Equity in the earnings of subsidiaries | R$ 356 | R$ 700 | R$ 233 | ||
Interest percentage | 30% | 30% | 30% | ||
Reclassification | |||||
Aguas De Castilho [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity | R$ 10787 | R$ 9384 | 8,533 | ||
Contribution | |||||
Dividends distributed | |||||
Profit for the year | 1,403 | 1,428 | 1,613 | ||
Investments | 3,236 | 2,815 | |||
Investments contribution | |||||
Dividends distributed | |||||
Other comprehensive income | [1] | ||||
Reclassification | |||||
Equity in the earnings of subsidiaries | R$ 421 | R$ 433 | R$ 485 | ||
Interest percentage | 30% | 30% | 30% | ||
Reclassification | |||||
Saneaqua Mairinque [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity | 4,013 | ||||
Contribution | |||||
Dividends distributed | |||||
Profit for the year | (770) | ||||
Investments | |||||
Investments contribution | |||||
Dividends distributed | |||||
Other comprehensive income | [1] | 17 | |||
Reclassification | 1,203 | ||||
Equity in the earnings of subsidiaries | R$ 248 | ||||
Interest percentage | 46% | 46% | 30% | ||
Reclassification | R$ 1203 | ||||
Capital increase | R$ 21944 | ||||
Number of shares issued | 17,178,988 | ||||
Other investments | R$ 5734 | ||||
Attend Ambiental [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity | R$ 29729 | R$ 23493 | 11,409 | ||
Contribution | |||||
Dividends distributed | (1,941) | ||||
Profit for the year | 8,177 | 4,701 | 3,923 | ||
Investments | 13,379 | 10,572 | |||
Investments contribution | |||||
Dividends distributed | (873) | ||||
Other comprehensive income | [1] | ||||
Reclassification | |||||
Equity in the earnings of subsidiaries | R$ 3680 | R$ 5438 | R$ 1765 | ||
Interest percentage | 45% | 45% | 45% | ||
Reclassification | |||||
Aquapolo Ambiental [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity | R$ 73926 | R$ 58172 | 41,903 | ||
Contribution | |||||
Dividends distributed | (14,742) | ||||
Profit for the year | 30,496 | 25,269 | 19,131 | ||
Investments | 36,223 | 28,504 | |||
Investments contribution | |||||
Dividends distributed | (7,224) | ||||
Other comprehensive income | [1] | ||||
Reclassification | |||||
Equity in the earnings of subsidiaries | R$ 14943 | R$ 12382 | R$ 9374 | ||
Interest percentage | 49% | 49% | 49% | ||
Reclassification | |||||
Paulista Geradora De Energias [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity | [2] | R$ 10486 | R$ 6153 | 6,692 | |
Contribution | [2] | 5,077 | |||
Dividends distributed | [2] | ||||
Profit for the year | [2] | (539) | (744) | (452) | |
Cantareira S P Energia [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity | 1,000 | ||||
Contribution | 1,000 | ||||
Dividends distributed | |||||
Profit for the year | |||||
Investments | 490 | ||||
Investments contribution | 490 | ||||
Dividends distributed | |||||
Other comprehensive income | [1] | ||||
Reclassification | |||||
Equity in the earnings of subsidiaries | |||||
Interest percentage | 49% | ||||
Reclassification | |||||
F O X X U R E B A Ambiental [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity | R$ 69258 | ||||
Contribution | 69,258 | ||||
Dividends distributed | |||||
Profit for the year | |||||
Investments | 13,852 | ||||
Investments contribution | 13,852 | ||||
Dividends distributed | |||||
Other comprehensive income | [1] | ||||
Reclassification | |||||
Equity in the earnings of subsidiaries | |||||
Interest percentage | 20% | ||||
Reclassification | |||||
Infranext Solucoesem Pavimentacao [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Equity | [3] | R$ 7050 | |||
Contribution | [3] | 7,050 | |||
Dividends distributed | [3] | ||||
Profit for the year | [3] | ||||
Investments | 450 | ||||
Investments contribution | 450 | ||||
Dividends distributed | |||||
Other comprehensive income | [1] | ||||
Reclassification | |||||
Equity in the earnings of subsidiaries | |||||
Interest percentage | 45% | ||||
Reclassification | |||||
Paulista Geradora De Energi [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Investments | R$ 6429 | 1,538 | |||
Investments contribution | 5,077 | ||||
Dividends distributed | |||||
Other comprehensive income | [1] | ||||
Reclassification | |||||
Equity in the earnings of subsidiaries | R$ 186 | R$ 135 | R$ 113 | ||
Interest percentage | 25% | 25% | 25% | ||
Reclassification | |||||
[1]Other Comprehensive Income[2]SABESP contributed R$ 5,077, corresponding to 25% of the interest. As of December 31, 2022, Servitec and Tecniplan had an outstanding payable amount of R$ 15,233 related to the remaining interest of 75% in PGE.[3]Infranext’s share capital will be R$ 12,000. As of December 31, 2022, SABESP had an outstanding payable amount of R$ 4,950. |
Investments (Details Narrative)
Investments (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Capital stock | R$ 15000000 | R$ 15000000 |
Capital stock, shares | 683,509,869 | |
Seasamm [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Capital stock | R$ 19532 | |
Capital stock, shares | 19,532,409 | |
Equity interest | 36% | |
G S Inima [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Equity interest | 64% | |
Aguas De Andradina [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Capital stock | R$ 17936 | |
Capital stock, shares | 17,936,174 | |
S A B E S P [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Equity interest | 30% | |
Percentage of equity interest held | 45% | |
Igua Saneamento S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Equity interest | 70% | |
Aguas De Castilho [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Capital stock | R$ 2785 | |
Capital stock, shares | 2,785,225 | |
Attend Ambiental [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Capital stock | R$ 23494 | |
Capital stock, shares | 37,677,245 | |
Estre [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Percentage of equity interest held | 55% | |
Aquapolo Ambiental [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Capital stock | R$ 36412 | |
Capital stock, shares | 42,419,045 | |
Paulista Geradora De Energia [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Capital stock | R$ 13756 | |
Capital stock, shares | 8,679,040 | |
Equity interest | 25% | |
Servtec Investimentos E Participacoes Ltda [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Percentage of equity interest held | 37.50% | |
Tecniplan Engenharia E Comercio Ltda [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Percentage of equity interest held | 37.50% |
Investment properties (Details)
Investment properties (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investment Properties | |||
Investment properties, beginning | R$ 46126 | R$ 46274 | R$ 47562 |
Additions | 648 | ||
Depreciation | (48) | (48) | (48) |
Investment properties, ending | R$ 46726 | 46,126 | 46,274 |
Write-offs and disposals | R$ 100 | ||
Transfers | R$ 1240 |
Investment properties (Details
Investment properties (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment Properties | ||
Investment properties, market value | R$ 386000 | R$ 386000 |
Contract assets (Details)
Contract assets (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Contract assets [abstract] | ||||
Contract assets, beginning | R$ 8550102 | R$ 7969164 | R$ 7617714 | |
Additions | 5,240,528 | [1] | 4,759,789 | 3,984,158 |
Transfers | 2,702 | 2,412 | 55,706 | |
Transfers of works to intangible assets | (5,179,364) | [2] | (4,181,263) | (3,688,414) |
Contract assets, ending | R$ 8613968 | [3] | R$ 8550102 | R$ 7969164 |
[1]The largest additions of the period are located in the municipalities of São Paulo, São Bernardo do Campo and Praia Grande, in the amounts of R$ 2,267 million, R$ 181 million and R$ 134 million, respectively.[2]The largest transfers of the period are located in the municipalities of São Paulo, Praia Grande and São Bernardo do Campo, in the amounts of R$ 2,640 million, R$ 619 million and R$ 324 million, respectively.[3]The largest works are located in the municipalities of São Paulo, Franca and São Bernardo do Campo, in the amounts of R$ 2,830 million, R$ 324 million and R$ 262 million, respectively. |
Contract assets (Details Narrat
Contract assets (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contract assets [abstract] | |||
Contract assets,includes leases | R$ 276893 | R$ 276893 | |
foreign currency exchange effects in the contract asset | 622,803 | 300,792 | R$ 238330 |
Construction margin | 109,369 | 98,402 | R$ 86477 |
Contracts assets | R$ 62599 | R$ 67714 |
Intangible assets (Details)
Intangible assets (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Cost | R$ 57924819 | R$ 52850974 | |
Accumulated amortization | (18,603,948) | (16,347,140) | |
Net | 39,320,871 | 36,503,834 | R$ 32325447 |
Agreements Equity Values [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 722,730 | 696,728 | |
Accumulated amortization | (223,404) | (205,671) | |
Net | 499,326 | 491,057 | |
Agreements Economic Value [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 1,585,271 | 1,497,968 | |
Accumulated amortization | (933,232) | (816,527) | |
Net | 652,039 | 681,441 | 712,852 |
Program Contractses [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 26,875,408 | 24,804,170 | |
Accumulated amortization | (8,537,949) | (7,652,149) | |
Net | 18,337,459 | 17,152,021 | |
Program Contract Commitments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 1,709,757 | 1,709,757 | |
Accumulated amortization | (444,765) | (391,800) | |
Net | 1,264,992 | 1,317,957 | |
Service Contracts Commitments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 25,584,703 | 22,834,803 | |
Accumulated amortization | (7,714,252) | (6,676,032) | |
Net | 17,870,451 | 16,158,771 | R$ 14390763 |
Software Licenses [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 1,249,881 | 1,133,833 | |
Accumulated amortization | (654,477) | (535,099) | |
Net | 595,404 | 598,734 | |
Right Of Uses [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 170,921 | 173,715 | |
Accumulated amortization | (95,869) | (69,862) | |
Net | 75,052 | 103,853 | |
Right Of Uses Investments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost | 26,148 | ||
Accumulated amortization | |||
Net | R$ 26148 |
Intangible assets (Details 1)
Intangible assets (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |||||
IfrsStatementLineItems [Line Items] | ||||||||
Intangible assets, beginning | R$ 36503834 | R$ 32325447 | ||||||
Additions | 75,400 | R$ 172961 | 411,285 | |||||
Transfer of contract assets | 5,179,364 | 4,181,263 | 3,688,414 | |||||
Transfers | (4,751) | 370 | 2,991 | |||||
Write-offs and disposals | (9,054) | (27,078) | (16,313) | |||||
Amortization | (2,423,922) | (2,229,257) | (2,006,249) | |||||
Intangible assets, ending | 39,320,871 | 36,503,834 | ||||||
Intangible assets, beginning | 36,503,834 | 34,405,575 | ||||||
Intangible assets, ending | 39,320,871 | 36,503,834 | 34,405,575 | |||||
Right of use | 574,517 | 626,427 | ||||||
Contract renewal | ||||||||
Leases Related To Concession Agreements And Program Contract [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Right of use | 222,572 | 245,681 | 269,561 | R$ 292824 | ||||
Concession Agreements [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Right of use | 54,356 | 65,012 | 76,454 | 87,266 | ||||
Program Contracts [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Right of use | 168,216 | 180,669 | 193,107 | R$ 205558 | ||||
Agreements Equity Value [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Intangible assets, beginning | [1] | 491,057 | ||||||
Additions | [1] | [2] | 1 | [3] | ||||
Transfer of contract assets | 27,166 | [1] | 24,656 | [2] | 47,154 | [3] | ||
Transfers | (144) | [1] | 467 | [2] | 1,440 | [3] | ||
Write-offs and disposals | (115) | [1] | (148) | [2] | (858) | [3] | ||
Amortization | (18,638) | [1] | (17,693) | [2] | (26,985) | [3] | ||
Intangible assets, ending | [1] | 499,326 | 491,057 | |||||
Intangible assets, beginning | [2] | 491,057 | 483,775 | [3] | ||||
Intangible assets, ending | [2] | 491,057 | 483,775 | [3] | ||||
Contract renewal | [3] | (1,031,830) | ||||||
Agreements Economic Value [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Intangible assets, beginning | 681,441 | 712,852 | ||||||
Additions | 13 | |||||||
Transfer of contract assets | 48,428 | 52,275 | 113,320 | |||||
Transfers | 33,576 | (14) | (1,403) | |||||
Write-offs and disposals | (9) | (242) | (42) | |||||
Amortization | (111,410) | (105,243) | (90,062) | |||||
Intangible assets, ending | 652,039 | 681,441 | ||||||
Intangible assets, beginning | 681,441 | 734,665 | ||||||
Intangible assets, ending | 652,039 | 681,441 | 734,665 | |||||
Contract renewal | ||||||||
Program Contracts [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Intangible assets, beginning | [3] | 13,819,700 | ||||||
Additions | 6,635 | [1] | 17,690 | [2] | 303,472 | [3] | ||
Transfer of contract assets | 2,132,675 | [1] | 1,640,733 | [2] | 2,075,268 | [3] | ||
Transfers | 2,944 | [1] | 13,744 | [2] | (51,570) | [3] | ||
Write-offs and disposals | (2,800) | [1] | (8,840) | [2] | (5,423) | [3] | ||
Amortization | (954,016) | [1] | (871,613) | [2] | (812,970) | [3] | ||
Intangible assets, beginning | [2] | 17,152,021 | [1] | 16,360,307 | [3] | |||
Intangible assets, ending | 18,337,459 | [1] | 17,152,021 | [1],[2] | 16,360,307 | [2],[3] | ||
Contract renewal | [3] | 1,031,830 | ||||||
Program Contracts Commitments [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Intangible assets, beginning | 1,364,875 | |||||||
Additions | 58,323 | |||||||
Transfer of contract assets | ||||||||
Transfers | ||||||||
Write-offs and disposals | ||||||||
Amortization | (52,965) | (52,966) | (52,275) | |||||
Intangible assets, beginning | 1,317,957 | 1,370,923 | ||||||
Intangible assets, ending | 1,264,992 | 1,317,957 | 1,370,923 | |||||
Contract renewal | ||||||||
Service Contracts Commitments [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Intangible assets, beginning | 16,158,771 | 14,390,763 | ||||||
Additions | 208 | 14,950 | 20,940 | |||||
Transfer of contract assets | 2,855,284 | 2,307,851 | 1,382,656 | |||||
Transfers | (41,133) | (13,827) | (23,645) | |||||
Write-offs and disposals | (6,063) | (13,745) | (9,990) | |||||
Amortization | (1,096,616) | (1,009,062) | (888,120) | |||||
Intangible assets, ending | 17,870,451 | 16,158,771 | ||||||
Intangible assets, beginning | 16,158,771 | 14,872,604 | 1,494,853 | [3] | ||||
Intangible assets, ending | 17,870,451 | 16,158,771 | 14,872,604 | |||||
Contract renewal | ||||||||
Software License [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Intangible assets, beginning | 471,706 | |||||||
Additions | 214 | |||||||
Transfer of contract assets | 115,811 | 155,748 | 70,016 | |||||
Transfers | 6 | 78,169 | ||||||
Write-offs and disposals | ||||||||
Amortization | (119,361) | (97,639) | (79,266) | |||||
Intangible assets, beginning | 598,734 | 540,625 | ||||||
Intangible assets, ending | 595,404 | 598,734 | 540,625 | |||||
Contract renewal | ||||||||
Right Of Use Other Assets [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Intangible assets, beginning | 70,698 | |||||||
Additions | 42,182 | 140,321 | 28,549 | |||||
Transfer of contract assets | ||||||||
Transfers | ||||||||
Write-offs and disposals | (67) | (4,103) | ||||||
Amortization | (70,916) | (75,041) | (56,571) | |||||
Intangible assets, beginning | 103,853 | 42,676 | ||||||
Intangible assets, ending | 75,052 | 103,853 | 42,676 | |||||
Contract renewal | ||||||||
Right Of Use Investments [Member] | ||||||||
IfrsStatementLineItems [Line Items] | ||||||||
Additions | 26,148 | |||||||
Transfer of contract assets | ||||||||
Transfers | ||||||||
Write-offs and disposals | ||||||||
Amortization | ||||||||
Intangible assets, beginning | ||||||||
Intangible assets, ending | R$ 26148 | |||||||
[1]As of December 31, 2022, intangible assets include leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 222,572 54,356 168,216 245,681 65,012 180,669 245,681 65,012 180,669 269,561 76,454 193,107 269,561 76,454 193,107 292,824 87,266 205,558 |
Intangible assets (Details 2)
Intangible assets (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Intangible assets | R$ 2977445 | R$ 3164860 |
Alto Tiete [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Intangible assets | 251,545 | 269,062 |
Sao Lourenco [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Intangible assets | R$ 2725900 | R$ 2895798 |
Intangible assets (Details 3)
Intangible assets (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Current liabilities | R$ 222413 | R$ 142757 |
Noncurrent liabilities | 2,736,768 | 2,917,428 |
Total liabilities | 2,959,181 | 3,060,185 |
Alto Tiete [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current liabilities | 91,782 | 69,442 |
Noncurrent liabilities | 36,645 | 102,873 |
Total liabilities | 128,427 | 172,315 |
Sao Lourenco [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current liabilities | 130,631 | 73,315 |
Noncurrent liabilities | 2,700,123 | 2,814,555 |
Total liabilities | R$ 2830754 | R$ 2887870 |
Intangible assets (Details 4)
Intangible assets (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
IfrsStatementLineItems [Line Items] | |||||
Right of use | R$ 574517 | R$ 626427 | |||
Right of use | (574,517) | (626,427) | |||
Right of use | 75,052 | 103,853 | |||
Rights of use were written off | 44,976 | 108,406 | |||
Leases Related To Contract Asset [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Right of use | 276,893 | 276,893 | |||
Right of use | (276,893) | (276,893) | |||
Leases Related To Concession Agreements And Program Contract [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Right of use | 222,572 | 245,681 | R$ 269561 | R$ 292824 | |
Right of use | (222,572) | (245,681) | R$ 269561 | R$ 292824 | |
Leases Related To Concession Agreements And Program Contract [Member] | Costs [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Right of use | 405,431 | 405,446 | |||
Right of use | (405,431) | (405,446) | |||
Leases Related To Concession Agreements And Program Contract [Member] | Accumulated Amortizations [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Right of use | 182,859 | 159,765 | |||
Right of use | (182,859) | (159,765) | |||
Vehicles [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Right of use | [1] | 153,384 | 142,003 | ||
Right of use | [1] | (153,384) | (142,003) | ||
Properties [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Right of use | [1] | 11,711 | 6,570 | ||
Right of use | [1] | (11,711) | (6,570) | ||
Office equipment [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Right of use | [1] | 5,826 | 9,841 | ||
Right of use | [1] | (5,826) | (9,841) | ||
Other assets [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Right of use | [1] | 15,301 | |||
Right of use | [1] | (15,301) | |||
Accumulated Amortization [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Right of use | [1] | 95,869 | 69,862 | ||
Right of use | [1] | R$ 95869 | R$ 69862 | ||
[1]From January to December 2022, costs and accumulated amortization totaling R$ 44,976 108,406 |
Intangible assets (Details 5)
Intangible assets (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets | |||
Right-of-use amortization | R$ 105551 | R$ 75041 | R$ 79834 |
Financial result – interest expenses | (72,050) | (68,730) | (62,956) |
Short-term and low-value lease expenses | (25,365) | (22,467) | (13,845) |
Decrease of the income of the year | R$ 202966 | R$ 166238 | R$ 156635 |
Intangible assets (Details Narr
Intangible assets (Details Narrative) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 BRL (R$) Municipalities | Dec. 31, 2021 BRL (R$) Municipalities | Dec. 31, 2020 BRL (R$) | Dec. 31, 2019 BRL (R$) Municipalities | ||
IfrsStatementLineItems [Line Items] | |||||
Program contracts commitments, current | R$ 100188 | R$ 77652 | |||
Program contracts commitments, noncurrent | R$ 12197 | R$ 44995 | |||
Percentage of revenue | 45.14% | 44.45% | |||
Monthly remuneration plus any interests and charges | R$ 14299 | ||||
Monthly remuneration plus any interests and charges | R$ 40024 | ||||
Intangible assets, discount rate for adjustment - PPP | 8.20% | ||||
Amortization average rate | 5.20% | 4.90% | 4.70% | ||
Contract asset | R$ 8613968 | [1] | R$ 8550102 | R$ 7969164 | R$ 7617714 |
Intangible assets | 39,320,871 | 36,503,834 | R$ 32325447 | ||
Performance Agreements [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Contract asset | 138,550 | 737,657 | |||
Intangible assets | R$ 2126106 | R$ 871488 | |||
Sao Paulo [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Number of municipalities | Municipalities | 375 | 375 | 372 | ||
Percentage of revenue | 7.50% | ||||
Sao Lourenco [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Intangible assets, discount rate for adjustment - PPP | 7.80% | ||||
[1]The largest works are located in the municipalities of São Paulo, Franca and São Bernardo do Campo, in the amounts of R$ 2,830 million, R$ 324 million and R$ 262 million, respectively. |
Property, plant and equipment_2
Property, plant and equipment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | ||||
Cost | R$ 698662 | R$ 637675 | ||
Accumulated depreciation | (359,723) | (346,518) | ||
Net | R$ 338939 | R$ 291157 | R$ 268251 | R$ 314393 |
Depreciation average rate | 11.20% | 11.10% | ||
Land [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cost | R$ 94228 | R$ 94213 | ||
Accumulated depreciation | ||||
Net | R$ 94228 | R$ 94213 | 94,213 | 92,962 |
Depreciation average rate | 0% | 0% | ||
Buildings [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cost | R$ 90311 | R$ 86703 | ||
Accumulated depreciation | (42,343) | (41,205) | ||
Net | R$ 47968 | R$ 45498 | 45,347 | 41,705 |
Depreciation average rate | 2.10% | 2.10% | ||
Office equipment [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cost | R$ 412828 | R$ 397782 | ||
Accumulated depreciation | (291,963) | (282,628) | ||
Net | R$ 120865 | R$ 115154 | 101,016 | 152,273 |
Depreciation average rate | 15.30% | 15.10% | ||
Transport Equipments [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cost | R$ 12578 | R$ 10434 | ||
Accumulated depreciation | (10,083) | (7,962) | ||
Net | R$ 2495 | R$ 2472 | 2,969 | 1,984 |
Depreciation average rate | 9.90% | 9.90% | ||
Fixtures and fittings [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cost | R$ 38528 | R$ 36561 | ||
Accumulated depreciation | (15,032) | (14,482) | ||
Net | R$ 23496 | R$ 22079 | 17,419 | 18,219 |
Depreciation average rate | 6.70% | 6.70% | ||
Other property, plant and equipment [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Cost | R$ 50189 | R$ 11982 | ||
Accumulated depreciation | (302) | (241) | ||
Net | R$ 49887 | R$ 11741 | R$ 7287 | R$ 7250 |
Depreciation average rate | 5% | 5% |
Property, plant and equipment_3
Property, plant and equipment (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Property, plant, and equipment, beginning | R$ 291157 | R$ 268251 | R$ 314393 |
Additions | 73,668 | 50,281 | 42,407 |
Transfers | 2,049 | (2,782) | (57,457) |
Write-offs and disposals | (1,056) | (576) | (277) |
Depreciation | (26,879) | (24,017) | (30,815) |
Property, plant, and equipment, ending | 338,939 | 291,157 | 268,251 |
Land [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property, plant, and equipment, beginning | 94,213 | 94,213 | 92,962 |
Additions | |||
Transfers | 15 | 1,251 | |
Write-offs and disposals | |||
Depreciation | |||
Property, plant, and equipment, ending | 94,228 | 94,213 | 94,213 |
Buildings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property, plant, and equipment, beginning | 45,498 | 45,347 | 41,705 |
Additions | 4,657 | 3,181 | 5,430 |
Transfers | (976) | (1,965) | (713) |
Write-offs and disposals | (45) | (5) | |
Depreciation | (1,166) | (1,060) | (1,075) |
Property, plant, and equipment, ending | 47,968 | 45,498 | 45,347 |
Office equipment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property, plant, and equipment, beginning | 115,154 | 101,016 | 152,273 |
Additions | 27,849 | 38,807 | 26,055 |
Transfers | 1,988 | (3,398) | (49,188) |
Write-offs and disposals | (781) | (365) | (174) |
Depreciation | (23,345) | (20,906) | (27,950) |
Property, plant, and equipment, ending | 120,865 | 115,154 | 101,016 |
Transport Equipments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Property, plant, and equipment, beginning | 2,472 | 2,969 | 1,984 |
Additions | 175 | 97 | 298 |
Transfers | 658 | 69 | 1,351 |
Write-offs and disposals | (3) | ||
Depreciation | (807) | (663) | (664) |
Property, plant, and equipment, ending | 2,495 | 2,472 | 2,969 |
Fixtures and fittings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property, plant, and equipment, beginning | 22,079 | 17,419 | 18,219 |
Additions | 2,646 | 4,477 | 4,087 |
Transfers | 394 | 1,647 | (3,712) |
Write-offs and disposals | (149) | (206) | (103) |
Depreciation | (1,474) | (1,258) | (1,072) |
Property, plant, and equipment, ending | 23,496 | 22,079 | 17,419 |
Other property, plant and equipment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property, plant, and equipment, beginning | 11,741 | 7,287 | 7,250 |
Additions | 38,341 | 3,719 | 6,537 |
Transfers | (30) | 865 | (6,446) |
Write-offs and disposals | (78) | ||
Depreciation | (87) | (130) | (54) |
Property, plant, and equipment, ending | R$ 49887 | R$ 11741 | R$ 7287 |
Borrowings and financing (Detai
Borrowings and financing (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Current | R$ 2245960 | R$ 1830617 | ||
Noncurrent | 16,712,711 | 15,893,219 | ||
Total | 18,958,671 | 17,723,836 | R$ 17258624 | R$ 13244709 |
Local currency | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 1,933,373 | 1,471,500 | ||
Noncurrent | 14,249,540 | 12,956,183 | ||
Total | 16,182,913 | 14,427,683 | 13,710,762 | 6,885,911 |
Local currency | Twelfth Issue Debentures [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 45,450 | 45,450 | ||
Noncurrent | 67,681 | 113,049 | ||
Total | 113,131 | 158,499 | ||
Local currency | 14th issue debentures | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 0 | 25,388 | ||
Noncurrent | 0 | 0 | ||
Total | 0 | 25,388 | ||
Local currency | 17th issue debentures | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 144,632 | 102,252 | ||
Noncurrent | 0 | 101,982 | ||
Total | 144,632 | 204,234 | ||
Local currency | 18th issue debentures | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 49,937 | 48,479 | ||
Noncurrent | 45,649 | 92,677 | ||
Total | 95,586 | 141,156 | ||
Local currency | 21th issue debentures | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 0 | 174,849 | ||
Noncurrent | 0 | 0 | ||
Total | 0 | 174,849 | ||
Local currency | 22th issue debentures | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 199,901 | 200,000 | ||
Noncurrent | 326,433 | 508,530 | ||
Total | 526,334 | 708,530 | ||
Local currency | 23th issue debentures | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 0 | 0 | ||
Noncurrent | 864,910 | 864,776 | ||
Total | 864,910 | 864,776 | ||
Local currency | 24th issue debentures | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 0 | 0 | ||
Noncurrent | 488,478 | 461,350 | ||
Total | 488,478 | 461,350 | ||
Local currency | Twenty Six Issue Debentures [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 0 | 0 | ||
Noncurrent | 1,239,645 | 1,168,317 | ||
Total | 1,239,645 | 1,168,317 | ||
Local currency | Twenty Seven Issue Debentures [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 299,614 | 0 | ||
Noncurrent | 698,339 | 997,433 | ||
Total | 997,953 | 997,433 | ||
Local currency | Twenty Eight Issue Debentures [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 0 | 0 | ||
Noncurrent | 1,197,756 | 1,197,395 | ||
Total | 1,197,756 | 1,197,395 | ||
Local currency | Twenty Nine Issue Debentures [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 0 | 0 | ||
Noncurrent | 1,275,295 | 1,230,602 | ||
Total | 1,275,295 | 1,230,602 | ||
Local currency | Thirty Issue Debentures [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 0 | 0 | ||
Noncurrent | 998,110 | 0 | ||
Total | 998,110 | 0 | ||
Local currency | Brazilian Federal Savings Bank [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 99,767 | 98,784 | ||
Noncurrent | 1,422,145 | 1,380,170 | ||
Total | 1,521,912 | 1,478,954 | ||
Local currency | Brazilian Development Bank - BNDES PAC [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 6,736 | 13,394 | ||
Noncurrent | 0 | 6,665 | ||
Total | 6,736 | 20,059 | ||
Local currency | Brazilian Development Bank - BNDES PAC II 9751 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 7,214 | 7,161 | ||
Noncurrent | 23,344 | 30,308 | ||
Total | 30,558 | 37,469 | ||
Local currency | Brazilian Development Bank - BNDES PAC II 9752 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 4,887 | 4,851 | ||
Noncurrent | 15,884 | 20,619 | ||
Total | 20,771 | 25,470 | ||
Local currency | Brazilian Development Bank - BNDES ONDA LIMPA [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 26,949 | 26,751 | ||
Noncurrent | 33,617 | 60,089 | ||
Total | 60,566 | 86,840 | ||
Local currency | Brazilian Development Bank - BNDES TIET III [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 154,437 | 117,593 | ||
Noncurrent | 656,264 | 617,251 | ||
Total | 810,701 | 734,844 | ||
Local currency | Brazilian Development Bank B N D E S T 2015 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 33,807 | 33,558 | ||
Noncurrent | 390,127 | 420,685 | ||
Total | 423,934 | 454,243 | ||
Local currency | Brazilian Development Bank - BNDES 2014 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 6,572 | 6,524 | ||
Noncurrent | 16,525 | 22,874 | ||
Total | 23,097 | 29,398 | ||
Local currency | Inter-American Development Bank - BID 2202 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 181,349 | 181,349 | ||
Noncurrent | 2,164,009 | 2,344,403 | ||
Total | 2,345,358 | 2,525,752 | ||
Local currency | Profit for the year - change in the equity [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 37,340 | 34,800 | ||
Noncurrent | 853,725 | 890,400 | ||
Total | 891,065 | 925,200 | ||
Local currency | Inter American Development Bank B I D I N V E S T 2022 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 14,100 | 0 | ||
Noncurrent | 452,085 | 0 | ||
Total | 466,185 | 0 | ||
Local currency | International Finance Corporation I F C [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 80,000 | 0 | ||
Noncurrent | 670,996 | 0 | ||
Total | 750,996 | 0 | ||
Local currency | Leases (Concession Agreements, Program Contracts and Contract Assets) [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 44,453 | 36,640 | ||
Noncurrent | 313,391 | 360,671 | ||
Total | 357,844 | 397,311 | 428,743 | 459,671 |
Local currency | Leases (Others) [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 72,109 | 69,306 | ||
Noncurrent | 29,265 | 56,663 | ||
Total | 101,374 | 125,969 | 45,876 | 74,453 |
Local currency | Others [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 6,241 | 4,790 | ||
Noncurrent | 5,867 | 9,274 | ||
Total | 12,108 | 14,064 | ||
Local currency | Interest and charges [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 417,878 | 239,581 | ||
Noncurrent | 0 | 0 | ||
Total | 417,878 | 239,581 | ||
Foreign currency | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 312,587 | 359,117 | ||
Noncurrent | 2,463,171 | 2,937,036 | ||
Total | 2,775,758 | 3,296,153 | R$ 3547862 | R$ 6358798 |
Foreign currency | Interest and charges [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 17,487 | 18,091 | ||
Noncurrent | 0 | 0 | ||
Total | 17,487 | 18,091 | ||
Foreign currency | Inter-American Development Bank - BID 1212 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 53,628 | 57,357 | ||
Noncurrent | 107,256 | 172,071 | ||
Total | 160,884 | 229,428 | ||
Foreign currency | Inter American Development Bank B I D 12121 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 0 | 0 | ||
Noncurrent | 367,441 | 155,192 | ||
Total | 367,441 | 155,192 | ||
Foreign currency | International Bank of Reconstruction and Development - BIRD [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 31,722 | 33,927 | ||
Noncurrent | 365,648 | 386,328 | ||
Total | 397,370 | 420,255 | ||
Foreign currency | JICA 15 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 45,602 | 55,858 | ||
Noncurrent | 273,610 | 391,008 | ||
Total | 319,212 | 446,866 | ||
Foreign currency | J I C A 18 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 41,001 | 50,223 | ||
Noncurrent | 245,865 | 351,398 | ||
Total | 286,866 | 401,621 | ||
Foreign currency | JICA 17 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 11,424 | 12,833 | ||
Noncurrent | 136,227 | 165,900 | ||
Total | 147,651 | 178,733 | ||
Foreign currency | JICA 19 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 71,761 | 87,901 | ||
Noncurrent | 967,124 | 1,272,803 | ||
Total | 1,038,885 | 1,360,704 | ||
Foreign currency | B I D 1983 A B 2 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Current | 39,962 | 42,927 | ||
Noncurrent | 0 | 42,336 | ||
Total | R$ 39962 | R$ 85263 |
Borrowings and financing (Det_2
Borrowings and financing (Details 1) | 12 Months Ended | |
Dec. 31, 2022 | ||
Local currency | Twelfth [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2025 | |
Annual interest rates | TR + 9.5% | |
Local currency | 14th issue debentures | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2022 | |
Annual interest rates | TJLP +1.92% (Series 1 and 3) and 9.19% (Series 2) | |
Inflation adjustment | IPCA (Series 2) | |
Local currency | 17th issue debentures | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2023 | |
Annual interest rates | CDI +0.75% (Series 1) and 4.5% (Series 2) and 4.75% (Series 3) | |
Inflation adjustment | IPCA (Series 2 and 3) | |
Local currency | 18th issue debentures | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2024 | |
Annual interest rates | TJLP + 1.92 % (Series 1 and 3) and 8.25% (Series 2) | |
Inflation adjustment | IPCA (Series 2) | |
Local currency | 21th issue debentures | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2022 | |
Annual interest rates | CDI + 0.60% e CDI+ 0.90% | |
Local currency | 22th issue debentures | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2025 | |
Annual interest rates | CDI +0.58% (Series 1) and CDI + 0.90% (Series 2) and 6.0% (Series 3) | |
Inflation adjustment | IPCA (Series 3) | |
Local currency | 23th issue debentures | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2027 | |
Annual interest rates | CDI +0.49% (Series 1) and CDI + 0.63% (Series 2) | |
Local currency | 24th issue debentures | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2029 | |
Annual interest rates | 3.20% (Series 1) and 3.37% (Series 2) | |
Inflation adjustment | IPCA (Series 1 and 2) | |
Local currency | Twenty Sixth Issue Debentures [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2030 | |
Annual interest rates | 4.65% (series 1) and 4.95% (series 2) | |
Inflation adjustment | IPCA (series 1 and 2) | |
Local currency | Twenty Seventh Issue Debentures [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2027 | |
Annual interest rates | CDI +1.60% (Series 1) and CDI + 1.80% (Series 2) and 2.25% (Series 3) | |
Local currency | Twenty Eight Issue Debentures [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2028 | |
Annual interest rates | CDI +1.20% (Series 1) and CDI + 1.44% (Series 2) and 1.60% (Series 3) | |
Local currency | Twenty Nine Issue Debentures [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2036 | |
Annual interest rates | CDI +1.29% (Series 1) and 5.3058% (Series 2) and 5.4478% (Series 3) | |
Inflation adjustment | IPCA (series 2 and 3) | |
Local currency | Thirty Issue Debentures [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2029 | |
Annual interest rates | CDI +1.30% (Series 1) and 1.58% (Series 2) | |
Local currency | Brazilian Federal Savings Bank [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2023/2042 | |
Annual interest rates | 5% to 9.5% | |
Inflation adjustment | TR | |
Local currency | Brazilian Development Bank - BNDES PAC [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2023 | |
Annual interest rates | TJLP+1.82% | |
Local currency | Brazilian Development Bank - BNDES PAC II 9751 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2027 | |
Annual interest rates | TJLP+1.72% | |
Local currency | Brazilian Development Bank - BNDES PAC II 9752 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2027 | |
Annual interest rates | TJLP+1.72% | |
Local currency | Brazilian Development Bank - BNDES ONDA LIMPA [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2025 | |
Annual interest rates | TJLP+1.92% | |
Local currency | Brazilian Development Bank - BNDES TIET III [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2028 | |
Annual interest rates | TJLP+1.66% | |
Local currency | Brazilian Development Bank B N D E S 2015 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2035 | |
Annual interest rates | TJLP+2.18% | |
Local currency | Brazilian Development Bank - BNDES 2014 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2026 | |
Annual interest rates | TJLP+1.76% | |
Local currency | Leases (Concession Agreements, Program Contracts and Contract Assets) [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Inflation adjustment | IPC | |
Local currency | Others [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2025 | |
Annual interest rates | 3% (FEHIDRO) and TJLP + 1.5% (FINEP) | |
Foreign currency | Inter-American Development Bank - BID 2202 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Government | |
Maturity | 2035 | |
Annual interest rates | CDI+0.86% | |
Foreign currency | Profit for the year - change in the equity [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2034 | |
Annual interest rates | CDI+1.90% and CDI+2.70% | |
Foreign currency | Inter American Development Bank B I D I N V E S T 2022 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2036 | |
Annual interest rates | CDI+2.50% | |
Foreign currency | International Finance Corporation I F C [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Own funds | |
Maturity | 2032 | |
Annual interest rates | CDI+2.00% | |
Foreign currency | Leases (Concession Agreements, Program Contracts and Contract Assets) [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Maturity | 2035 | |
Annual interest rates | 7.73% to 10.12% | |
Foreign currency | Other Leases [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Maturity | 2027 | |
Annual interest rates | 5.20% to 15.39% | |
Foreign currency | Inter-American Development Bank - BID 1212 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Government | |
Maturity | 2025 | |
Annual interest rates | 3.31% (*) | [1] |
Exchange rate changes | US$ | |
Foreign currency | Inter American Development Bank B I D 4623 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Government | |
Maturity | 2044 | |
Annual interest rates | 1.12% (*) | [1] |
Exchange rate changes | US$ | |
Foreign currency | International Bank For Reconstruction And Development [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Government | |
Maturity | 2034 | |
Annual interest rates | 2.85% (*) | [1] |
Exchange rate changes | US$ | |
Foreign currency | JICA 15 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Government | |
Maturity | 2029 | |
Annual interest rates | 1.8% and 2.5% | |
Exchange rate changes | Yen | |
Foreign currency | J I C A 18 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Government | |
Maturity | 2029 | |
Annual interest rates | 1.8% and 2.5% | |
Exchange rate changes | Yen | |
Foreign currency | JICA 17 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Government | |
Maturity | 2035 | |
Annual interest rates | 1.2% and 0.01% | |
Exchange rate changes | Yen | |
Foreign currency | JICA 19 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | Government | |
Maturity | 2037 | |
Annual interest rates | 1.7% and 0.01% | |
Exchange rate changes | Yen | |
Foreign currency | B I D 1983 A B U S 15385 Thousand [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Guarantees | - | |
Maturity | 2023 | |
Annual interest rates | 2.08% to 2.38% (*) | [1] |
Exchange rate changes | US$ | |
[1]Rates comprising SOFR + contractually defined spread. |
Borrowings and financing (Det_3
Borrowings and financing (Details 2) R$ in Thousands | Dec. 31, 2022 BRL (R$) |
IfrsStatementLineItems [Line Items] | |
2023 | R$ 2245960 |
2024 | 2,041,323 |
2025 | 2,189,609 |
2026 | 2,061,084 |
2027 | 2,675,653 |
2028 | 1,542,692 |
2029 to 2044 | 6,202,350 |
TOTAL | 18,958,671 |
Local currency | |
IfrsStatementLineItems [Line Items] | |
2023 | 1,933,373 |
2024 | 1,786,186 |
2025 | 1,924,270 |
2026 | 1,839,172 |
2027 | 2,453,741 |
2028 | 1,320,780 |
2029 to 2044 | 4,925,391 |
TOTAL | 16,182,913 |
Local currency | Debentures [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 739,534 |
2024 | 1,072,853 |
2025 | 1,203,451 |
2026 | 1,082,322 |
2027 | 1,700,765 |
2028 | 644,748 |
2029 to 2044 | 1,498,157 |
TOTAL | 7,941,830 |
Local currency | Brazilian Federal Savings Bank [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 99,767 |
2024 | 99,270 |
2025 | 105,476 |
2026 | 112,071 |
2027 | 119,068 |
2028 | 126,371 |
2029 to 2044 | 859,889 |
TOTAL | 1,521,912 |
Local currency | BNDES [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 240,602 |
2024 | 233,867 |
2025 | 213,586 |
2026 | 203,726 |
2027 | 191,168 |
2028 | 72,322 |
2029 to 2044 | 221,092 |
TOTAL | 1,376,363 |
Local currency | B I D 2202 [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 181,349 |
2024 | 181,349 |
2025 | 181,349 |
2026 | 181,349 |
2027 | 181,349 |
2028 | 181,349 |
2029 to 2044 | 1,257,264 |
TOTAL | 2,345,358 |
Local currency | B I D I N V E S T [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 37,340 |
2024 | 39,550 |
2025 | 44,300 |
2026 | 106,390 |
2027 | 108,728 |
2028 | 143,591 |
2029 to 2044 | 411,166 |
TOTAL | 891,065 |
Local currency | B I D I N V E S T 2022 [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 14,100 |
2024 | 14,100 |
2025 | 38,275 |
2026 | 38,431 |
2027 | 38,431 |
2028 | 38,431 |
2029 to 2044 | 284,417 |
TOTAL | 466,185 |
Local currency | I F C [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 80,000 |
2024 | 80,000 |
2025 | 80,000 |
2026 | 80,000 |
2027 | 80,000 |
2028 | 80,000 |
2029 to 2044 | 270,996 |
TOTAL | 750,996 |
Local currency | Leases (Concession Agreements, Program Contracts and Contract Assets) [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 44,453 |
2024 | 46,638 |
2025 | 45,839 |
2026 | 30,769 |
2027 | 33,767 |
2028 | 33,968 |
2029 to 2044 | 122,410 |
TOTAL | 357,844 |
Local currency | Leases (Others) [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 72,109 |
2024 | 15,580 |
2025 | 9,248 |
2026 | 3,972 |
2027 | 465 |
2028 | 0 |
2029 to 2044 | 0 |
TOTAL | 101,374 |
Local currency | Other Borrowings [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 6,241 |
2024 | 2,979 |
2025 | 2,746 |
2026 | 142 |
2027 | 0 |
2028 | 0 |
2029 to 2044 | 0 |
TOTAL | 12,108 |
Local currency | Borrowings Interest And Charges [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 417,878 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
2029 to 2044 | 0 |
TOTAL | 417,878 |
Foreign currency | |
IfrsStatementLineItems [Line Items] | |
2023 | 312,587 |
2024 | 255,137 |
2025 | 265,339 |
2026 | 221,912 |
2027 | 221,912 |
2028 | 221,912 |
2029 to 2044 | 1,276,959 |
TOTAL | 2,775,758 |
Foreign currency | Borrowings Interest And Charges [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 17,487 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
2029 to 2044 | 0 |
TOTAL | 17,487 |
Foreign currency | BID [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 53,628 |
2024 | 53,628 |
2025 | 63,830 |
2026 | 20,403 |
2027 | 20,403 |
2028 | 20,403 |
2029 to 2044 | 296,030 |
TOTAL | 528,325 |
Foreign currency | BIRD [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 31,722 |
2024 | 31,722 |
2025 | 31,722 |
2026 | 31,722 |
2027 | 31,722 |
2028 | 31,722 |
2029 to 2044 | 207,038 |
TOTAL | 397,370 |
Foreign currency | JICA [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 169,788 |
2024 | 169,787 |
2025 | 169,787 |
2026 | 169,787 |
2027 | 169,787 |
2028 | 169,787 |
2029 to 2044 | 773,891 |
TOTAL | 1,792,614 |
Foreign currency | BID 1983AB [Member] | |
IfrsStatementLineItems [Line Items] | |
2023 | 39,962 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
2029 to 2044 | 0 |
TOTAL | R$ 39962 |
Borrowings and financing (Det_4
Borrowings and financing (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | R$ 17723836 | R$ 17258624 | R$ 13244709 |
Addition (lease) | 42,182 | 140,187 | 28,549 |
Funding | 2,834,551 | 2,959,633 | 4,845,860 |
Borrowing costs | (27,525) | (36,822) | (68,386) |
Monetary variation and exchange rate changes | (301,716) | 177,269 | 2,267,179 |
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 13,554 | 10,198 | 67,304 |
Interest paid | (1,505,488) | (845,445) | (626,625) |
Amortization | (1,536,724) | (2,896,604) | (3,244,099) |
Accrued interest | 1,091,592 | 647,980 | 559,931 |
Provision for interest and fees - Capitalized | 609,249 | 290,594 | 171,026 |
Expenses with borrowing costs | 15,160 | 18,222 | 13,176 |
Borrowings and financing, ending | 18,958,671 | 17,723,836 | 17,258,624 |
Total borrowings and financing (Note 17) | 18,958,671 | 17,723,836 | 17,258,624 |
Local currency | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 14,427,683 | 13,710,762 | 6,885,911 |
Addition (lease) | 42,182 | 140,187 | 28,549 |
Funding | 2,553,091 | 2,816,545 | 4,752,889 |
Borrowing costs | (17,627) | (25,749) | (59,453) |
Monetary variation and exchange rate changes | 190,202 | 225,791 | 86,939 |
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 10,250 | ||
Interest paid | (1,454,009) | (788,587) | (419,082) |
Amortization | (1,232,434) | (2,553,645) | (919,040) |
Accrued interest | 1,044,453 | 601,187 | 406,826 |
Provision for interest and fees - Capitalized | 605,513 | 284,015 | 128,869 |
Expenses with borrowing costs | 13,609 | 17,177 | 10,983 |
Borrowings and financing, ending | 16,182,913 | 14,427,683 | 13,710,762 |
Total borrowings and financing (Note 17) | 16,182,913 | 14,427,683 | 13,710,762 |
Foreignlocal currency translation | 2,807,371 | ||
Local currency | Debentures [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 7,467,968 | 6,756,504 | 3,711,228 |
Addition (lease) | |||
Funding | 1,000,000 | 2,450,000 | 3,507,640 |
Borrowing costs | (4,320) | (25,717) | (52,328) |
Monetary variation and exchange rate changes | 165,879 | 225,106 | 86,939 |
Inflation adjustment / exchange variation and incorporated interest - Capitalized | |||
Interest paid | (712,966) | (387,618) | (161,494) |
Amortization | (563,504) | (1,963,282) | (572,871) |
Accrued interest | 544,116 | 258,114 | 201,150 |
Provision for interest and fees - Capitalized | 257,951 | 139,563 | 26,073 |
Expenses with borrowing costs | 11,242 | 15,298 | 10,167 |
Borrowings and financing, ending | 8,166,366 | 7,467,968 | 6,756,504 |
Total borrowings and financing (Note 17) | 8,166,366 | 7,467,968 | 6,756,504 |
Local currency | Brazilian Federal Savings Banks [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 1,483,113 | 1,418,832 | 1,429,250 |
Addition (lease) | |||
Funding | 119,437 | 156,488 | 74,485 |
Borrowing costs | |||
Monetary variation and exchange rate changes | 17,247 | 685 | |
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 7,131 | ||
Interest paid | (117,041) | (113,030) | (111,601) |
Amortization | (100,855) | (93,064) | (84,821) |
Accrued interest | 80,422 | 79,966 | 73,067 |
Provision for interest and fees - Capitalized | 36,731 | 33,236 | 38,452 |
Expenses with borrowing costs | |||
Borrowings and financing, ending | 1,526,185 | 1,483,113 | 1,418,832 |
Total borrowings and financing (Note 17) | 1,526,185 | 1,483,113 | 1,418,832 |
Local currency | BNDES [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 1,392,844 | 1,370,902 | 1,201,411 |
Addition (lease) | |||
Funding | 200,000 | 207,136 | 213,514 |
Borrowing costs | |||
Monetary variation and exchange rate changes | 7,020 | ||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 3,117 | ||
Interest paid | (104,596) | (88,084) | (47,164) |
Amortization | (222,353) | (186,179) | (81,213) |
Accrued interest | 67,311 | 51,122 | 47,668 |
Provision for interest and fees - Capitalized | 37,391 | 37,688 | 36,427 |
Expenses with borrowing costs | 259 | 259 | 259 |
Borrowings and financing, ending | 1,380,993 | 1,392,844 | 1,370,902 |
Total borrowings and financing (Note 17) | 1,380,993 | 1,392,844 | 1,370,902 |
Local currency | B I D 2202 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 2,589,442 | 2,730,195 | |
Addition (lease) | |||
Funding | |||
Borrowing costs | |||
Monetary variation and exchange rate changes | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | |||
Interest paid | (281,971) | (97,829) | (37,613) |
Amortization | (181,349) | (181,349) | (90,674) |
Accrued interest | 98,574 | 63,964 | 22,668 |
Provision for interest and fees - Capitalized | 224,899 | 73,506 | 27,886 |
Expenses with borrowing costs | 955 | 955 | 557 |
Borrowings and financing, ending | 2,450,550 | 2,589,442 | 2,730,195 |
Total borrowings and financing (Note 17) | 2,450,550 | 2,589,442 | 2,730,195 |
Foreignlocal currency translation | 2,807,371 | ||
Local currency | B I D I N V E S T [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 956,942 | 944,513 | |
Addition (lease) | |||
Funding | 950,000 | ||
Borrowing costs | (7,125) | ||
Monetary variation and exchange rate changes | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | |||
Interest paid | (108,921) | (33,276) | |
Amortization | (34,800) | (18,340) | |
Accrued interest | 129,733 | 63,380 | 1,638 |
Provision for interest and fees - Capitalized | |||
Expenses with borrowing costs | 665 | 665 | |
Borrowings and financing, ending | 943,619 | 956,942 | 944,513 |
Total borrowings and financing (Note 17) | 943,619 | 956,942 | 944,513 |
Local currency | I F C [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | |||
Addition (lease) | |||
Funding | 760,000 | ||
Borrowing costs | (9,385) | ||
Monetary variation and exchange rate changes | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | |||
Interest paid | (24,978) | ||
Amortization | |||
Accrued interest | |||
Provision for interest and fees - Capitalized | 48,507 | ||
Expenses with borrowing costs | 381 | ||
Borrowings and financing, ending | 774,525 | ||
Total borrowings and financing (Note 17) | 774,525 | ||
Local currency | B I D I N V E S T 2022 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | |||
Addition (lease) | |||
Funding | 470,000 | ||
Borrowing costs | (3,922) | ||
Monetary variation and exchange rate changes | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | |||
Interest paid | (30,698) | ||
Amortization | |||
Accrued interest | 33,840 | ||
Provision for interest and fees - Capitalized | |||
Expenses with borrowing costs | 107 | ||
Borrowings and financing, ending | 469,327 | ||
Total borrowings and financing (Note 17) | 469,327 | ||
Local currency | Leases (Concession Agreements, Program Contracts and Contract Assets) [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 397,311 | 428,743 | 459,671 |
Addition (lease) | |||
Funding | |||
Borrowing costs | |||
Monetary variation and exchange rate changes | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | |||
Interest paid | (54,390) | (52,250) | (51,431) |
Amortization | (39,467) | (31,432) | (30,928) |
Accrued interest | 54,390 | 52,250 | 51,431 |
Provision for interest and fees - Capitalized | |||
Expenses with borrowing costs | |||
Borrowings and financing, ending | 357,844 | 397,311 | 428,743 |
Total borrowings and financing (Note 17) | 357,844 | 397,311 | 428,743 |
Local currency | Leases (Others) [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 125,969 | 45,876 | 74,453 |
Addition (lease) | 42,182 | 140,187 | 28,549 |
Funding | |||
Borrowing costs | |||
Monetary variation and exchange rate changes | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | |||
Interest paid | (17,659) | (15,782) | (9,108) |
Amortization | (84,437) | (76,013) | (56,571) |
Accrued interest | 35,319 | 31,701 | 8,553 |
Provision for interest and fees - Capitalized | |||
Expenses with borrowing costs | |||
Borrowings and financing, ending | 101,374 | 125,969 | 45,876 |
Total borrowings and financing (Note 17) | 101,374 | 125,969 | 45,876 |
Local currency | Other Borrowings [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 14,094 | 15,197 | 9,898 |
Addition (lease) | |||
Funding | 3,654 | 2,921 | 7,250 |
Borrowing costs | (32) | ||
Monetary variation and exchange rate changes | 56 | ||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 2 | ||
Interest paid | (789) | (718) | (671) |
Amortization | (5,669) | (3,986) | (1,962) |
Accrued interest | 748 | 690 | 651 |
Provision for interest and fees - Capitalized | 34 | 22 | 31 |
Expenses with borrowing costs | |||
Borrowings and financing, ending | 12,130 | 14,094 | 15,197 |
Total borrowings and financing (Note 17) | 12,130 | 14,094 | 15,197 |
Foreign currency | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 3,296,153 | 3,547,862 | 6,358,798 |
Addition (lease) | |||
Funding | 281,460 | 143,088 | 92,971 |
Borrowing costs | (9,898) | (11,073) | (8,933) |
Monetary variation and exchange rate changes | (491,918) | (48,522) | 2,180,240 |
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 3,304 | 10,198 | 67,304 |
Interest paid | (51,479) | (56,858) | (207,543) |
Amortization | (304,290) | (342,959) | (2,325,059) |
Accrued interest | 47,139 | 46,793 | 153,105 |
Provision for interest and fees - Capitalized | 3,736 | 6,579 | 42,157 |
Expenses with borrowing costs | 1,551 | 1,045 | 2,193 |
Borrowings and financing, ending | 2,775,758 | 3,296,153 | 3,547,862 |
Total borrowings and financing (Note 17) | 2,775,758 | 3,296,153 | 3,547,862 |
Foreignlocal currency translation | (2,807,371) | ||
Foreign currency | BID [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 387,837 | 317,302 | 2,316,190 |
Addition (lease) | |||
Funding | 226,497 | 108,728 | 52,141 |
Borrowing costs | (6,732) | (7,620) | (6,635) |
Monetary variation and exchange rate changes | (20,355) | 22,979 | 845,246 |
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 48,246 | ||
Interest paid | (12,581) | (8,488) | (45,010) |
Amortization | (56,273) | (53,197) | (121,088) |
Accrued interest | 13,733 | 7,936 | 10,490 |
Provision for interest and fees - Capitalized | 24,695 | ||
Expenses with borrowing costs | 567 | 197 | 398 |
Borrowings and financing, ending | 532,693 | 387,837 | 317,302 |
Total borrowings and financing (Note 17) | 532,693 | 387,837 | 317,302 |
Foreignlocal currency translation | (2,807,371) | ||
Foreign currency | BIRD [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 420,881 | 426,860 | 357,880 |
Addition (lease) | |||
Funding | 39,417 | ||
Borrowing costs | (3,166) | (3,377) | (2,029) |
Monetary variation and exchange rate changes | (28,665) | 30,814 | 102,029 |
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 61 | 1,217 | |
Interest paid | (3,779) | (2,481) | (7,572) |
Amortization | (30,895) | (32,965) | (31,216) |
Accrued interest | 5,525 | 1,789 | 5,659 |
Provision for interest and fees - Capitalized | 20 | 752 | |
Expenses with borrowing costs | 363 | 241 | 140 |
Borrowings and financing, ending | 399,762 | 420,881 | 426,860 |
Total borrowings and financing (Note 17) | 399,762 | 420,881 | 426,860 |
Foreign currency | JICA [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 2,401,887 | 2,684,321 | 2,106,908 |
Addition (lease) | |||
Funding | 15,546 | 34,360 | 40,830 |
Borrowing costs | (76) | (117) | |
Monetary variation and exchange rate changes | (437,296) | (108,851) | 715,956 |
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 3,243 | 10,198 | 17,841 |
Interest paid | (33,167) | (43,184) | (43,758) |
Amortization | (177,007) | (216,190) | (200,597) |
Accrued interest | 26,597 | 35,315 | 40,172 |
Provision for interest and fees - Capitalized | 3,102 | 5,802 | 6,897 |
Expenses with borrowing costs | 204 | 192 | 189 |
Borrowings and financing, ending | 1,803,109 | 2,401,887 | 2,684,321 |
Total borrowings and financing (Note 17) | 1,803,109 | 2,401,887 | 2,684,321 |
Foreign currency | B I D 1983 A B 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 85,548 | 119,379 | 163,864 |
Addition (lease) | |||
Funding | |||
Borrowing costs | (152) | ||
Monetary variation and exchange rate changes | (5,602) | 59,078 | |
Inflation adjustment / exchange variation and incorporated interest - Capitalized | |||
Interest paid | (1,952) | (7,033) | |
Amortization | (40,115) | (103,482) | |
Accrued interest | 1,284 | 5,843 | |
Provision for interest and fees - Capitalized | 614 | 618 | |
Expenses with borrowing costs | 417 | 643 | |
Borrowings and financing, ending | 40,194 | 85,548 | 119,379 |
Total borrowings and financing (Note 17) | 40,194 | 85,548 | 119,379 |
Foreign currency | BID 1983AB [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | R$ 85548 | 119,379 | |
Addition (lease) | |||
Funding | |||
Borrowing costs | |||
Monetary variation and exchange rate changes | 6,536 | ||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | |||
Interest paid | (2,705) | ||
Amortization | (40,607) | ||
Accrued interest | 1,753 | ||
Provision for interest and fees - Capitalized | 777 | ||
Expenses with borrowing costs | 415 | ||
Borrowings and financing, ending | 85,548 | 119,379 | |
Total borrowings and financing (Note 17) | 85,548 | 119,379 | |
Foreign currency | Euro Bonds [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Borrowings and financing, beginning | 1,413,956 | ||
Monetary variation and exchange rate changes | 457,931 | ||
Interest paid | (104,170) | ||
Amortization | (1,868,676) | ||
Accrued interest | 90,941 | ||
Provision for interest and fees - Capitalized | 9,195 | ||
Expenses with borrowing costs | 823 | ||
Borrowings and financing, ending | |||
Total borrowings and financing (Note 17) |
Borrowings and financing (Det_5
Borrowings and financing (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Mar. 18, 2022 | Dec. 31, 2022 | |
Twenty Eighth Issue Debentures Series One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Amount | R$ 1000000 | R$ 500 |
Maturity | 03/2027 | |
Remuneration | CDI + 1.30 p.a. | |
Twenty Eighth Issue Debentures Series Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Amount | R$ 500 | |
Maturity | 03/2029 | |
Remuneration | CDI + 1.58 p.a. |
Borrowings and financing (Det_6
Borrowings and financing (Details 5) | 12 Months Ended |
Dec. 31, 2021 | |
Adjusted EBITDA / Adjusted financial expenses [Member] | |
IfrsStatementLineItems [Line Items] | |
Restrictive ratios | Equal to or higher than 2.80 |
Adjusted net debt / Adjusted EBITDA [Member] | |
IfrsStatementLineItems [Line Items] | |
Restrictive ratios | Equal to or higher than 2.35 |
Adjusted total debt / Adjusted EBITDA [Member] | |
IfrsStatementLineItems [Line Items] | |
Restrictive ratios | Equal to or lower than 3.80 |
Other onerous debt / Adjusted EBITDA [Member] | |
IfrsStatementLineItems [Line Items] | |
Restrictive ratios | Equal to or lower than 3.50 |
Adjusted current ratio [Member] | |
IfrsStatementLineItems [Line Items] | |
Restrictive ratios | Lower than 3.65 |
EBITDA / Paid financial expenses [Member] | |
IfrsStatementLineItems [Line Items] | |
Restrictive ratios | Equal to or lower than 1.30 |
Net debt / Adjusted EBITDA [Member] | |
IfrsStatementLineItems [Line Items] | |
Restrictive ratios | Higher than 1.00 |
Borrowings and financing (Det_7
Borrowings and financing (Details 6) R$ in Thousands | Dec. 31, 2022 BRL (R$) | [1] |
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing - credit limits | R$ 3789 | |
Brazilian Federal Savings Bank [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing - credit limits | 1,079 | |
Brazilian Developments Bank B N D E S [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing - credit limits | 255 | |
Inter American Development Bank B I D [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing - credit limits | 1,178 | |
International Bank For Reconstruction And Developmenst [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing - credit limits | 1,259 | |
Others1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Borrowings and financing - credit limits | R$ 18 | |
[1]Brazilian Central Bank’s exchange sell rate as of December 30, 2022 (US$ 1.00 = R$ 5.2177; ¥ 1.00 = R$ 0.03957). |
Borrowings and financing (Det_8
Borrowings and financing (Details Narrative) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jul. 15, 2022 BRL (R$) | Mar. 18, 2022 BRL (R$) | Jul. 27, 2022 BRL (R$) | Jun. 30, 2022 BRL (R$) | Mar. 31, 2022 BRL (R$) | Dec. 31, 2022 BRL (R$) Number | Dec. 31, 2021 Number | |
IfrsStatementLineItems [Line Items] | |||||||
Issuer's net sales and/or service revenue, percentage | 25% | ||||||
Amortization paid | R$ 185100000 | ||||||
Principal amount | 175,000,000 | R$ 25700000 | |||||
Interest | R$ 10100000 | 1,900,000 | |||||
Raised debentures | R$ 470000000.0 | R$ 760000000.0 | |||||
Lease payment period | After startup, the lease payment period starts (240 monthly installments), whose amount is periodically restated by contracted price index. | ||||||
Twenty Eighth Issue Debentures Series One [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Raised funds | R$ 1000000000.0 | R$ 500000 | |||||
Twenty Eight Debentures [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Agreement clause in case of early maturity of debt | R$ 182000000 | ||||||
Amortization paid | R$ 27600000 | ||||||
U S D [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Exchange rate | Number | 5.2177 | 5.5805 | |||||
Japan, Yen | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Exchange rate | Number | 0.03957 | 0.04847 |
Taxes recoverable_payable (Deta
Taxes recoverable/payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Current tax assets | R$ 242906 | R$ 276104 |
Income Tax And Socials Contribution [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current tax assets | 206,517 | 259,902 |
Withholdings Income Tax [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current tax assets | 33,283 | 13,041 |
Other Federal Taxes [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current tax assets | R$ 3106 | R$ 3161 |
Taxes recoverable_payable (De_2
Taxes recoverable/payable (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Current tax liabilities | R$ 293461 | R$ 257130 |
C O F I N S And Pasep [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current tax liabilities | 134,624 | 111,963 |
Social Securitys Contribution [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current tax liabilities | 44,515 | 39,902 |
I R R F Withholding Income Tax On Financials Investments [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current tax liabilities | 63,361 | 49,468 |
Other Tax Payables [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Current tax liabilities | R$ 50961 | R$ 55797 |
Deferred taxes and contributi_3
Deferred taxes and contributions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax assets | R$ 1119259 | R$ 1012595 | R$ 931736 | R$ 905258 |
Total deferred tax liabilities | (1,308,537) | (1,296,334) | (1,252,452) | (1,339,254) |
Deferred tax assets (liabilities), net | (189,278) | (283,739) | (320,716) | (433,996) |
Tax Provisions [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax assets | 560,404 | 503,374 | 436,445 | 366,673 |
Pension Obligations G 1 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax assets | 141,606 | 150,577 | 154,498 | 157,998 |
Donations [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax assets | 46,088 | 47,589 | 50,142 | 51,818 |
Credit Losses [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax assets | 199,363 | 183,963 | 155,719 | 145,622 |
Deferred Taxes Other [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax assets | 171,798 | 127,092 | 134,932 | 183,147 |
Temporary differences [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax liabilities | (353,817) | (368,235) | (388,675) | (408,732) |
Capitalization Borrowing Costs [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax liabilities | (457,669) | (404,931) | (390,211) | (409,236) |
Profit On Supply Government Entities [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax liabilities | (346,650) | (353,262) | (356,513) | (372,289) |
Actuarial Gain Loss G 1 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax liabilities | (93,561) | (109,271) | (48,979) | (54,222) |
Construction Margin [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax liabilities | (43,323) | (46,079) | (48,843) | (83,399) |
Borrowing Costs [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total deferred tax liabilities | R$ 13517 | R$ 14556 | R$ 19231 | R$ 11376 |
Deferred taxes and contributi_4
Deferred taxes and contributions (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | ||||
Deferred income tax assets | R$ 1119259 | R$ 1012595 | R$ 931736 | R$ 905258 |
Deferred income tax liabilities | (1,308,537) | (1,296,334) | (1,252,452) | (1,339,254) |
Deferred tax assets (liabilities), net | (189,278) | (283,739) | R$ 320716 | R$ 433996 |
Realized Within 12 Months [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Deferred income tax assets | 318,965 | 280,373 | ||
Deferred income tax liabilities | (25,746) | (31,777) | ||
Realized After 1 Year [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Deferred income tax assets | 800,294 | 732,222 | ||
Deferred income tax liabilities | R$ 1282791 | R$ 1264557 |
Deferred taxes and contributi_5
Deferred taxes and contributions (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Deferred income tax assets, beginning | R$ 1012595 | R$ 931736 | R$ 905258 |
Deferred tax asset, changes | 106,664 | 80,859 | 26,478 |
Deferred income tax assets, ending | R$ 1119259 | R$ 1012595 | R$ 931736 |
Deferred income tax liabilities, beginning | (1,296,334) | (1,252,452) | (1,339,254) |
Deferred tax liabilities, changes | (12,203) | (43,882) | 86,802 |
Deferred income tax liabilities, ending | (1,308,537) | (1,296,334) | (1,252,452) |
Opening balance | (283,739) | (320,716) | (433,996) |
Deferred tax assets, net, changes | 94,461 | 36,977 | 113,280 |
Closing balance | (189,278) | (283,739) | (320,716) |
- corresponding entry to the income statement | 78,751 | 97,269 | 108,037 |
- corresponding entry to valuation adjustments to equity (Note 22) | 15,710 | (60,292) | 5,243 |
Total net change | 94,461 | 36,977 | 113,280 |
Tax Provisions [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax assets, beginning | R$ 503374 | R$ 436445 | R$ 366673 |
Deferred tax asset, changes | 57,030 | 66,929 | 69,772 |
Deferred income tax assets, ending | R$ 560404 | R$ 503374 | R$ 436445 |
Pension Obligations G 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax assets, beginning | R$ 150577 | R$ 154498 | R$ 157998 |
Deferred tax asset, changes | (8,971 | (3,921 | (3,500 |
Deferred income tax assets, ending | R$ 141606 | R$ 150577 | R$ 154498 |
Donations [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax assets, beginning | R$ 47589 | R$ 50142 | R$ 51818 |
Deferred tax asset, changes | (1,501 | (2,553 | (1,676 |
Deferred income tax assets, ending | R$ 46088 | R$ 47589 | R$ 50142 |
Credit Losses [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax assets, beginning | R$ 183963 | R$ 155719 | R$ 145622 |
Deferred tax asset, changes | 15,400 | 28,244 | 10,097 |
Deferred income tax assets, ending | R$ 199363 | R$ 183963 | R$ 155719 |
Deferred Taxes Other [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax assets, beginning | R$ 127092 | R$ 134932 | R$ 183147 |
Deferred tax asset, changes | 44,706 | (7,840 | (48,215 |
Deferred income tax assets, ending | R$ 171798 | R$ 127092 | R$ 134932 |
Temporary differences [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax liabilities, beginning | (368,235) | (388,675) | (408,732) |
Deferred tax liabilities, changes | 14,418 | 20,440 | 20,057 |
Deferred income tax liabilities, ending | (353,817) | (368,235) | (388,675) |
Capitalization Borrowing Costs [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax liabilities, beginning | (404,931) | (390,211) | (409,236) |
Deferred tax liabilities, changes | (52,738) | (14,720) | 19,025 |
Deferred income tax liabilities, ending | (457,669) | (404,931) | (390,211) |
Profit On Supply Government Entities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax liabilities, beginning | (353,262) | (356,513) | (372,289) |
Deferred tax liabilities, changes | 6,612 | 3,251 | 15,776 |
Deferred income tax liabilities, ending | (346,650) | (353,262) | (356,513) |
Actuarial Gain Loss G 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax liabilities, beginning | (109,271) | (48,979) | (54,222) |
Deferred tax liabilities, changes | 15,710 | (60,292) | 5,243 |
Deferred income tax liabilities, ending | (93,561) | (109,271) | (48,979) |
Construction Margin [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax liabilities, beginning | (46,079) | (48,843) | (83,399) |
Deferred tax liabilities, changes | 2,756 | 2,764 | 34,556 |
Deferred income tax liabilities, ending | (43,323) | (46,079) | (48,843) |
Borrowing Costs [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax liabilities, beginning | (14,556) | (19,231) | (11,376) |
Deferred tax liabilities, changes | 1,039 | 4,675 | (7,855) |
Deferred income tax liabilities, ending | R$ 13517 | R$ 14556 | R$ 19231 |
Deferred taxes and contributi_6
Deferred taxes and contributions (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Deferred Taxes And Contributions | ||||
Profit before income taxes | R$ 4272750 | R$ 3170156 | R$ 1326002 | |
Statutory rate | 34% | 34% | 34% | |
Estimated expense at the statutory rate | R$ 1452735 | R$ 1077853 | R$ 450841 | |
Tax benefit of interest on equity | 284,920 | 200,073 | 126,604 | |
Provision – Law 4,819/1958 – G0 (i) | [1] | (26,786) | (22,640) | (37,675) |
Donations | (16,588) | (16,723) | (8,672) | |
Other differences | 59,706 | 52,856 | 17,900 | |
Income tax and social contribution | (1,151,483) | (864,287) | (352,684) | |
Current income tax and social contribution | (1,230,234) | (961,556) | (460,721) | |
Deferred income tax and social contribution | R$ 78751 | R$ 97269 | R$ 108037 | |
Effective rate | 27% | 27% | 27% | |
[1]Permanent difference related to the provision for actuarial liability (Note 22 (ii) and (v)). |
Provisions (Details)
Provisions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Provisions | R$ 1648246 | R$ 1480510 |
Escrow deposits | (37,462) | (32,017) |
Total | 1,610,784 | 1,448,493 |
Customer Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Provisions | 151,023 | 168,258 |
Escrow deposits | (6,226) | (10,780) |
Total | 144,797 | 157,478 |
Supplier Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Provisions | 257,080 | 477,854 |
Escrow deposits | (53) | (123) |
Total | 257,027 | 477,731 |
Other Civil Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Provisions | 99,462 | 95,601 |
Escrow deposits | (1,131) | (2,523) |
Total | 98,331 | 93,078 |
Tax Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Provisions | 79,532 | 57,509 |
Escrow deposits | (16,037) | (2,693) |
Total | 63,495 | 54,816 |
Labor Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Provisions | 654,277 | 349,962 |
Escrow deposits | (13,979) | (15,864) |
Total | 640,298 | 334,098 |
Environmental Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Provisions | 406,872 | 331,326 |
Escrow deposits | (36) | (34) |
Total | 406,836 | 331,292 |
Current Provision [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Provisions | 924,038 | 809,821 |
Total | 924,038 | 809,821 |
Noncurrent Provision [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Provisions | 724,208 | 670,689 |
Escrow deposits | (37,462) | (32,017) |
Total | R$ 686746 | R$ 638672 |
Provisions (Details 1)
Provisions (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Provisions, beginning | R$ 1448493 | R$ 1252302 | R$ 1035808 |
Additional provisions | 421,878 | 250,374 | 270,575 |
Interest and inflation adjustment | 274,666 | 216,855 | 295,777 |
Use of the accrual | (412,852) | (144,847) | (214,689) |
Amounts not used (reversal) | (121,401) | (126,191) | (135,169) |
Provisions, ending | 1,610,784 | 1,448,493 | 1,252,302 |
Customer Claim [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provisions, beginning | 168,258 | 160,705 | 253,665 |
Additional provisions | 12,258 | 32,996 | 16,465 |
Interest and inflation adjustment | 21,316 | 29,685 | 19,638 |
Use of the accrual | (29,363) | (30,972) | (78,640) |
Amounts not used (reversal) | (21,446) | (24,156) | (50,423) |
Provisions, ending | 151,023 | 168,258 | 160,705 |
Supplier Claim [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provisions, beginning | 477,854 | 410,734 | 153,654 |
Additional provisions | 78,481 | 92,135 | 149,566 |
Interest and inflation adjustment | 56,934 | 90,788 | 201,259 |
Use of the accrual | (309,321) | (71,238) | (68,801) |
Amounts not used (reversal) | (46,868) | (44,565) | (24,944) |
Provisions, ending | 257,080 | 477,854 | 410,734 |
Other Civil Claim [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provisions, beginning | 95,601 | 86,083 | 93,910 |
Additional provisions | 22,485 | 15,477 | 15,944 |
Interest and inflation adjustment | 13,708 | 12,850 | 11,109 |
Use of the accrual | (9,248) | (10,056) | (23,009) |
Amounts not used (reversal) | (23,084) | (8,753) | (11,871) |
Provisions, ending | 99,462 | 95,601 | 86,083 |
Tax Claim [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provisions, beginning | 57,509 | 59,678 | 59,143 |
Additional provisions | 18,216 | 8,630 | 4,333 |
Interest and inflation adjustment | 7,837 | 8,054 | 2,737 |
Use of the accrual | (1,568) | (15,133) | (1,875) |
Amounts not used (reversal) | (2,462) | (3,720) | (4,660) |
Provisions, ending | 79,532 | 57,509 | 59,678 |
Labor Claim [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provisions, beginning | 349,962 | 316,880 | 325,129 |
Additional provisions | 307,352 | 100,245 | 61,782 |
Interest and inflation adjustment | 131,139 | 36,373 | 35,541 |
Use of the accrual | (76,884) | (66,220) | (61,039) |
Amounts not used (reversal) | (57,292) | (37,316) | (44,533) |
Provisions, ending | 654,277 | 349,962 | 316,880 |
Environmental Claim [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provisions, beginning | 331,326 | 249,582 | 192,950 |
Additional provisions | 38,632 | 40,477 | 35,392 |
Interest and inflation adjustment | 48,511 | 50,957 | 27,718 |
Use of the accrual | (300) | (33) | |
Amounts not used (reversal) | (11,297) | (9,657) | (6,478) |
Provisions, ending | 406,872 | 331,326 | 249,582 |
Subtotal Claim [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provisions, beginning | 1,480,510 | 1,283,662 | 1,078,451 |
Additional provisions | 477,424 | 289,960 | 283,482 |
Interest and inflation adjustment | 279,445 | 228,707 | 298,002 |
Use of the accrual | (426,684) | (193,652) | (233,364) |
Amounts not used (reversal) | (162,449) | (128,167) | (142,909) |
Provisions, ending | 1,648,246 | 1,480,510 | 1,283,662 |
Escrow Deposit [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Provisions, beginning | (32,017) | (31,360) | (42,643) |
Additional provisions | (55,546) | (39,586) | (12,907) |
Interest and inflation adjustment | (4,779) | (11,852) | (2,225) |
Provisions, ending | (37,462) | (32,017) | (31,360) |
Use of the accrual | 13,832 | (48,805) | (18,675) |
Amounts not used (reversal) | 41,048 | 1,976 | 7,740 |
Use of the accrual | R$ 13832 | R$ 48805 | R$ 18675 |
Provisions (Details 2)
Provisions (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
IfrsStatementLineItems [Line Items] | ||
Significant contingent liabilities | R$ 9138469 | R$ 8394883 |
Customer Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Significant contingent liabilities | 200,966 | 173,875 |
Supplier Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Significant contingent liabilities | 1,147,606 | 1,521,935 |
Other Civil Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Significant contingent liabilities | 1,146,048 | 852,735 |
Tax Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Significant contingent liabilities | 1,869,583 | 1,548,781 |
Labor Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Significant contingent liabilities | 1,471,423 | 1,095,841 |
Environmental Claim [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Significant contingent liabilities | R$ 3302843 | R$ 3201716 |
Provisions (Details Narrative)
Provisions (Details Narrative) - BRL (R$) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | May 25, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Executed court agreements | R$ 308134000 | ||
Performance of works | 302,873,000 | ||
Environmental compensations | 5,261,000 | ||
Guarantee insurance for escrow deposit renewed | 432,200,000 | R$ 600000000 | |
Tax Claim [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Tax deficiency notice related to sewage services | 957,199,000 | R$ 857688000 | |
Other Concession Related Legal Proceedings [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Indemnities receivable | R$ 27539000 | R$ 27539000 |
Labor and social obligations (D
Labor and social obligations (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Labor And Social Obligations | ||
Salaries and payroll charges | R$ 70089 | R$ 58591 |
Provision for vacation | 254,469 | 226,127 |
Healthcare plan (i) | 70,136 | 45,915 |
Provision for profit sharing (ii) | 96,227 | 88,376 |
Consent Decree (TAC) | 6,114 | 5,723 |
Knowledge Retention Program (PRC) | 1,469 | 1,884 |
Total | R$ 498504 | R$ 426616 |
Labor and social obligations _2
Labor and social obligations (Details Narrative) - Health Plan Medical Assistance [Member] - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||
Average gross payroll | 8.80% | 8.50% |
Wages and salaries | R$ 272460 | R$ 232850 |
Pension plan obligations (Detai
Pension plan obligations (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | |||
Present value of defined benefit obligations | R$ 4717463 | R$ 4956089 | R$ 5662521 |
Fair value of the plan's assets | 2,567,272 | 2,634,427 | 2,793,927 |
Liability as per statement of financial position - pension obligations | (2,150,191) | (2,321,662) | |
G 1 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Present value of defined benefit obligations | (2,715,388) | (2,764,027) | (3,112,980) |
Fair value of the plan's assets | 2,567,272 | 2,634,427 | 2,793,927 |
Liability as per statement of financial position - pension obligations | (148,116) | (129,600) | |
G 0 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Present value of defined benefit obligations | (2,002,075) | (2,192,062) | (2,549,541) |
Fair value of the plan's assets | |||
Liability as per statement of financial position - pension obligations | R$ 2002075 | R$ 2192062 |
Pension plan obligations (Det_2
Pension plan obligations (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Defined benefit obligation, beginning | R$ 4956089 | R$ 5662521 | |
Current service cost | (35,020) | (32,777) | |
Interest cost | (408,698) | (363,951) | |
Actuarial (gains)/losses recorded as other comprehensive income | 288,392 | 745,160 | |
Benefits paid | 393,952 | 358,000 | |
Defined benefit obligation, ending | (4,717,463) | (4,956,089) | R$ 5662521 |
Fair value of the plan's assets, beginning | 2,634,427 | 2,793,927 | |
Expected return on the plan assets | 221,079 | 184,687 | |
Expected Company's contributions | 39,377 | 35,368 | |
Expected participants' contributions | 34,000 | 30,551 | |
Benefits paid | (188,778) | (172,614) | |
Actuarial gains/(losses) included in other comprehensive income (loss) | (172,833) | (237,492) | (80,059) |
Fair value of the plan's assets, ending | 2,567,272 | 2,634,427 | 2,793,927 |
(Deficit)/Surplus | (2,150,191) | (2,321,662) | |
G 1 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Defined benefit obligation, beginning | (2,764,027) | (3,112,980) | |
Current service cost | (35,020) | (32,777) | |
Interest cost | (231,745) | (205,707) | |
Actuarial (gains)/losses recorded as other comprehensive income | 126,626 | 414,823 | |
Benefits paid | 188,778 | 172,614 | |
Defined benefit obligation, ending | (2,715,388) | (2,764,027) | (3,112,980) |
Fair value of the plan's assets, beginning | 2,634,427 | 2,793,927 | |
Expected return on the plan assets | 221,079 | 184,687 | |
Expected Company's contributions | 39,377 | 35,368 | |
Expected participants' contributions | 34,000 | 30,551 | |
Benefits paid | (188,778) | (172,614) | |
Actuarial gains/(losses) included in other comprehensive income (loss) | (172,833) | (237,492) | (80,059) |
Fair value of the plan's assets, ending | 2,567,272 | 2,634,427 | 2,793,927 |
(Deficit)/Surplus | (148,116) | (129,600) | |
G 0 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Defined benefit obligation, beginning | (2,192,062) | (2,549,541) | |
Current service cost | |||
Interest cost | (176,953) | (158,244) | |
Actuarial (gains)/losses recorded as other comprehensive income | 161,766 | 330,337 | |
Benefits paid | 205,174 | 185,386 | |
Defined benefit obligation, ending | (2,002,075) | (2,192,062) | (2,549,541) |
Fair value of the plan's assets, beginning | |||
Expected return on the plan assets | |||
Expected Company's contributions | |||
Expected participants' contributions | |||
Benefits paid | |||
Actuarial gains/(losses) included in other comprehensive income (loss) | |||
Fair value of the plan's assets, ending | |||
(Deficit)/Surplus | R$ 2002075 | R$ 2192062 |
Pension plan obligations (Det_3
Pension plan obligations (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Actuarial gains/(losses) on obligations | R$ 288392 | R$ 745160 | R$ 585968 |
Actuarial gains/(losses) recorded as other comprehensive income | (172,833) | (237,492) | (80,059) |
Total gains/(losses) | 115,559 | 507,668 | 505,909 |
Deferred income tax and social contribution - G1 Plan | 15,710 | (60,292) | 5,243 |
Valuation adjustments to equity | 131,269 | 447,376 | 511,152 |
G 1 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Actuarial gains/(losses) on obligations | 126,626 | 414,823 | 64,637 |
Actuarial gains/(losses) recorded as other comprehensive income | (172,833) | (237,492) | (80,059) |
Total gains/(losses) | (46,207) | 177,331 | (15,422) |
Deferred income tax and social contribution - G1 Plan | 15,710 | (60,292) | 5,243 |
Valuation adjustments to equity | (30,497) | 117,039 | (10,179) |
G 0 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Actuarial gains/(losses) on obligations | 161,766 | 330,337 | 521,331 |
Actuarial gains/(losses) recorded as other comprehensive income | |||
Total gains/(losses) | 161,766 | 330,337 | 521,331 |
Deferred income tax and social contribution - G1 Plan | |||
Valuation adjustments to equity | R$ 161766 | R$ 330337 | R$ 521331 |
Pension plan obligations (Det_4
Pension plan obligations (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Cost of service, net | R$ 1020 | R$ 2227 | R$ 4608 |
Interest cost rates | 408,698 | 363,951 | 414,747 |
Expected return on the plan's assets | (221,079) | (184,687) | (187,317) |
Amount received from State of Sao Paulo (undisputed) | (98,174) | (91,657) | (95,452) |
Total expenses | 90,465 | 89,834 | 136,586 |
G 1 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of service, net | 1,020 | 2,227 | 4,608 |
Interest cost rates | 231,745 | 205,707 | 208,485 |
Expected return on the plan's assets | (221,079) | (184,687) | (187,317) |
Amount received from State of Sao Paulo (undisputed) | |||
Total expenses | 11,686 | 23,247 | 25,776 |
G 0 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cost of service, net | |||
Interest cost rates | 176,953 | 158,244 | 206,262 |
Expected return on the plan's assets | |||
Amount received from State of Sao Paulo (undisputed) | (98,174) | (91,657) | (95,452) |
Total expenses | R$ 78779 | R$ 66587 | R$ 110810 |
Pension plan obligations (Det_5
Pension plan obligations (Details 4) R$ in Thousands | 12 Months Ended |
Dec. 31, 2022 BRL (R$) | |
G 1 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Payment of benefits expected in 2023 | R$ 213318 |
Payment of benefits expected in 2024 | 200,740 |
Payment of benefits expected in 2025 | 192,045 |
Payment of benefits expected in 2026 | 182,039 |
Payment of benefits expected in 2027 or after | 1,927,246 |
Payment of benefits expected | R$ 2715388 |
Duration | 12 years 8 months 8 days |
G 0 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Payment of benefits expected in 2023 | R$ 190425 |
Payment of benefits expected in 2024 | 177,004 |
Payment of benefits expected in 2025 | 167,075 |
Payment of benefits expected in 2026 | 156,583 |
Payment of benefits expected in 2027 or after | 1,310,988 |
Payment of benefits expected | R$ 2002075 |
Duration | 10 years 4 months 24 days |
Pension plan obligations (Det_6
Pension plan obligations (Details 5) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
G 1 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Discount rate - actual rate (NTN-B) | 6.19% | 5.53% | 3.44% |
Inflation rate | 5.31% | 3% | 3.25% |
Nominal rate of salary growth | 7.42% | 5.06% | 5.32% |
Mortality table | AT-2000 | AT-2000 | AT-2000 |
G 0 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Discount rate - actual rate (NTN-B) | 6.15% | 5.26% | 3.07% |
Inflation rate | 5.31% | 3% | 3.25% |
Nominal rate of salary growth | 7.42% | 5.06% | 5.32% |
Mortality table | AT-2000 | AT-2000 | AT-2000 |
Pension plan obligations (Det_7
Pension plan obligations (Details 6) | 12 Months Ended |
Dec. 31, 2022 | |
Discount Rate [Member] | Increase Of One Percent [Member] | G 1 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 215,825 |
Discount Rate [Member] | Increase Of One Percent [Member] | G 0 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 159,129 |
Discount Rate [Member] | Decrease Of One Percent [Member] | G 1 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 234,447 |
Discount Rate [Member] | Decrease Of One Percent [Member] | G 0 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 172,859 |
Life Expectation [Member] | Increase Of One Year [Member] | G 1 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 59,778 |
Life Expectation [Member] | Increase Of One Year [Member] | G 0 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 83,050 |
Life Expectation [Member] | Decrease Of One Year [Member] | G 1 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 58,505 |
Life Expectation [Member] | Decrease Of One Year [Member] | G 0 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 79,449 |
Wage Increase Rate [Member] | Increase Of One Percent [Member] | G 1 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 38,898 |
Wage Increase Rate [Member] | Increase Of One Percent [Member] | G 0 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 894 |
Wage Increase Rate [Member] | Decrease Of One Percent [Member] | G 1 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 40,755 |
Wage Increase Rate [Member] | Decrease Of One Percent [Member] | G 0 Plan [Member] | |
IfrsStatementLineItems [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 937 |
Pension plan obligations (Det_8
Pension plan obligations (Details 7) - G 1 Plan [Member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2022 BRL (R$) | |
IfrsStatementLineItems [Line Items] | |
Cost of services, net | R$ 5997 |
Regular and extraordinary contributions expected from participants | (36,521) |
Interest costs | 307,777 |
Net profitability on financial assets | (294,788) |
Expenditures to be recognized by the employer | R$ 17535 |
Pension plan obligations (Det_9
Pension plan obligations (Details 8) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Pension Plan Obligations | ||
Total fixed income | R$ 1804550 | R$ 1613153 |
Percentage of total fixed income | 70.30% | 61.20% |
Total equities | R$ 136582 | R$ 261665 |
Percentage of total equities | 5.30% | 9.90% |
Total structured investments | R$ 498825 | R$ 599970 |
Percentage of total structured investments | 19.40% | 22.80% |
Other | R$ 127315 | R$ 159639 |
Percentage of other | 5% | 6.10% |
Fair value of the plan's assets | R$ 2567272 | R$ 2634427 |
Percentage of fair value of the plan's assets | 100% | 100% |
Pension plan obligations (De_10
Pension plan obligations (Details 9) - G 0 Plan [Member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2022 BRL (R$) | |
IfrsStatementLineItems [Line Items] | |
Interest cost rates | R$ 225220 |
Expense to be recognized | R$ 225220 |
Pension plan obligations (De_11
Pension plan obligations (Details 10) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Subtotal | R$ 116162 | R$ 112400 | R$ 158344 |
Expenses capitalized in assets | (3,359) | (4,118) | (4,904) |
Other | 5,684 | 5,527 | 5,841 |
Pension plan obligations (Note 29) | 118,487 | 113,809 | 159,281 |
G 1 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | 11,686 | 23,247 | 25,776 |
G 0 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | 78,779 | 66,587 | 110,810 |
Sabesprev Mais Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | 25,371 | 22,406 | 21,700 |
V I V E S T Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Subtotal | R$ 326 | R$ 160 | R$ 58 |
Pension plan obligations (De_12
Pension plan obligations (Details Narrative) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2022 BRL (R$) Number | Dec. 31, 2021 BRL (R$) Number | |
Sabesprev Mais One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Active participants of plan | 9,365 | 9,463 |
V I V E S T [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of participants of retirement benefit plan not receiving benefits | Number | 58 | 46 |
G 1 Plan [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Description of defined benefit plan | 0.99% of the portion of the salary of participation up to 20 salaries; and | |
Description of defined benefit plan1 | 8.39% of the surplus, if any, of the portion of the salary of participation over 20 salaries. | |
Number of participants of retirement benefit plan receiving benefits | Number | 2,843 | 2,930 |
Number of participants of retirement benefit plan not receiving benefits | Number | 8,089 | 8,109 |
Decrease (increase) in net defined benefit liability (asset) resulting from resulting from contributions to plan by employer | R$ 39377 | R$ 35368 |
Contribution participants | 34,000 | 30,551 |
Actuarial deficit | 31,556 | 26,168 |
Actuarial deficit participants | R$ 28829 | R$ 23609 |
G 0 Plan [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Active participants of plan | 8 | 8 |
Beneficiaries retirees and survivors | 1,750 | 1,794 |
Services payable (Details Narra
Services payable (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Services Payable | ||
Services payable | R$ 723242 | R$ 469027 |
Equity (Details)
Equity (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
IfrsStatementLineItems [Line Items] | |||
Number of shares | 683,509,869 | 683,509,869 | |
Percentage of shares | 100% | ||
State Department Of Finance [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of shares | 343,506,664 | 343,506,664 | |
Percentage of shares | 50.30% | 50.30% | |
Other Shareholders In Brazil [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of shares | [1] | 257,339,417 | 234,965,971 |
Percentage of shares | [1] | 37.60% | 34.40% |
Other Shareholders Abroads [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Number of shares | [2],[3] | 82,663,788 | 105,037,234 |
Percentage of shares | [2],[3] | 12.10% | 15.30% |
[1]As of December 31, 2022, the common shares traded in Brazil were held by 31,351 shareholders. It includes six shares held by Companhia Paulista de Parcerias (CPP), which is controlled by the São Paulo State Government.[2]Each ADR corresponds to 1 share.[3]Shares traded as American Depositary Receipts (ADR) on the New York Stock Exchange, through The Bank New York Mellon, the depositary bank for the Company's ADRs. |
Equity (Details 1)
Equity (Details 1) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 BRL (R$) $ / shares | Dec. 31, 2022 BRL (R$) | Dec. 31, 2021 BRL (R$) $ / shares | Dec. 31, 2021 BRL (R$) | Dec. 31, 2020 BRL (R$) $ / shares | Dec. 31, 2020 BRL (R$) | |
Equity | ||||||
Profit for the year | R$ 3121267 | R$ 2305869 | R$ 973318 | |||
(-) Legal reserve - 5% | R$ 156063 | 156,063 | R$ 115293 | 115,293 | R$ 48666 | 48,666 |
Distribution of earnings | 2,965,204 | 2,190,576 | 924,652 | |||
Minimum mandatory dividend - 25% | R$ 741301 | R$ 547645 | R$ 231163 | |||
Dividend per share and per ADS | $ / shares | R$ 1.08455 | R$ 0.80122 | R$ 0.33820 |
Equity (Details 2)
Equity (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity | |||
Profit for the year | R$ 3121267 | R$ 2305869 | R$ 973318 |
Legal reserve | 156,063 | 115,293 | 48,666 |
Minimum mandatory dividends | 741,301 | 547,645 | 231,163 |
Additional proposed dividends | 130,857 | 96,700 | 40,806 |
Investment reserve recorded | R$ 2093046 | R$ 1546231 | R$ 652683 |
Equity (Details 3)
Equity (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Other comprehensive loss, beginning | R$ 46374 | ||
Actuarial gains (losses) | 131,269 | R$ 447376 | R$ 511152 |
Other comprehensive loss, ending | 177,643 | ||
G 1 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other comprehensive loss, beginning | 212,114 | ||
Actuarial gains (losses) | (30,497) | ||
Other comprehensive loss, ending | 181,617 | ||
G 0 Plan [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other comprehensive loss, beginning | (165,740) | ||
Actuarial gains (losses) | 161,766 | ||
Other comprehensive loss, ending | R$ 3974 |
Equity (Details Narrative)
Equity (Details Narrative) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 BRL (R$) $ / shares | Dec. 31, 2022 BRL (R$) shares | Dec. 31, 2021 BRL (R$) $ / shares | Dec. 31, 2021 BRL (R$) shares | Dec. 31, 2020 BRL (R$) | |
Equity | |||||
Paid-in capital value | R$ 15000 | R$ 15000 | |||
Paid-in capital shares | shares | 683,509,869 | 683,509,869 | |||
Dividends paid, classified as operating activities | R$ 96700 | ||||
Surplus Minimum Mandatory | 55,631 | ||||
Dividends paid, classified as operating activities | R$ 741301 | 547,645 | |||
Additional Proposed Dividends | 130,857 | 96,700 | R$ 40806 | ||
Totaling Proposed Dividends | 872,158 | 644,345 | |||
Dividends paid, ordinary shares per share | $ / shares | $ 1.2760 | $ 0.9427 | |||
Dividends Withholding Income Tax Recognized In Current Liabilities | $ 53,930 | 53,930 | $ 41,069 | 41,069 | |
Dividends Witheld Income Tax | 53,930 | 53,930 | 41,069 | 41,069 | |
Declared Dividend Payables | 741,725 | 741,725 | 548,006 | 548,006 | |
Declared Dividend Payables1 | 741,301 | 741,301 | 547,645 | 547,645 | |
Dividends Witheld Income Tax1 | 424 | R$ 424 | $ 361 | 361 | |
Description Of Legal Reserve | Earnings reserve - legal reserve: created by allocating 5% of the net income for the year up to the limit of 20% of the share capital. The Company may not create the legal reserve in the year in which the balance of this reserve, plus the amount of the capital reserves, exceeds 30% of the share capital. The purpose of the legal reserve is to ensure the integrity of the share capital. It can only be used to offset losses or increase capital, but not to pay dividends | ||||
Investment Reserve | R$ 10390535 | R$ 8297489 | |||
Retained earnings | $ 2,093,046 | R$ 2093046 |
Earnings per share (Details)
Earnings per share (Details) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 $ / shares | Dec. 31, 2022 BRL (R$) shares | Dec. 31, 2021 $ / shares | Dec. 31, 2021 BRL (R$) shares | Dec. 31, 2020 $ / shares | Dec. 31, 2020 BRL (R$) shares | |
Earnings per share [abstract] | ||||||
Earnings attributable to Company’s owners | R$ | R$ 3121267 | R$ 2305869 | R$ 973318 | |||
Weighted average number of common shares issued | shares | 683,509,869 | 683,509,869 | 683,509,869 | |||
Basic and diluted earnings per share (reais per share) | $ / shares | $ 4.57 | $ 3.37 | $ 1.42 |
Operating segment information_2
Operating segment information (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
IfrsStatementLineItems [Line Items] | ||||||
Gross operating revenue | R$ 23493711 | R$ 20680945 | R$ 18874396 | |||
Gross sales deductions | (1,437,991) | (1,189,884) | (1,076,855) | |||
Net operating revenue | 22,055,720 | 19,491,061 | 17,797,541 | |||
Costs, selling and administrative expenses | (17,443,434) | (15,393,720) | (13,426,960) | |||
Income from operations before other operating expenses, net and equity accounting | 4,612,286 | 4,097,341 | 4,370,581 | |||
Other operating income/(expenses), net | 8,327 | (21,841) | 107,656 | |||
Equity accounting | 24,551 | 22,079 | 14,136 | |||
Financial result, net | (372,414) | (927,423) | (3,166,371) | |||
Income from operations before taxes | 4,272,750 | 3,170,156 | 1,326,002 | |||
Depreciation and amortization | (2,450,849) | (2,253,322) | (2,037,112) | |||
Sanitations [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Gross operating revenue | 18,629,959 | [1] | 16,304,206 | [1] | 15,157,780 | [2] |
Gross sales deductions | (1,437,991) | [1] | (1,189,884) | [1] | (1,076,855) | [2] |
Net operating revenue | 17,191,968 | [1] | 15,114,322 | [1] | 14,080,925 | [2] |
Costs, selling and administrative expenses | (12,689,051) | [1] | (11,115,383) | [1] | (9,796,821) | [2] |
Income from operations before other operating expenses, net and equity accounting | 4,502,917 | [1] | 3,998,939 | [1] | 4,284,104 | [2] |
Depreciation and amortization | (2,450,849) | [1] | (2,253,322) | [1] | (2,037,112) | [2] |
Reconciliations [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Gross operating revenue | 4,863,752 | [3] | 4,376,739 | [3] | 3,716,616 | [4] |
Gross sales deductions | [3] | [3] | [4] | |||
Net operating revenue | 4,863,752 | [3] | 4,376,739 | [3] | 3,716,616 | [4] |
Costs, selling and administrative expenses | (4,754,383) | [3] | (4,278,337) | [3] | (3,630,139) | [4] |
Income from operations before other operating expenses, net and equity accounting | R$ 109369 | [3] | R$ 98402 | [3] | R$ 86477 | [4] |
[1]See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information;[2]See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information;[3]Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 14 (b).[4]Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 14 (b). |
Insurance (Details)
Insurance (Details) R$ in Thousands | Dec. 31, 2022 BRL (R$) | |
IfrsStatementLineItems [Line Items] | ||
Coverage | R$ 5354985 | |
Specified Risk [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Coverage | 2,185,827 | |
Engineering Risk [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Coverage | 2,275,490 | |
Guarantee Insurance Escrow Deposit [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Coverage | 600,000 | [1] |
Civil Liability Directors And Officers [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Coverage | 100,000 | |
Civil Liability Work [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Coverage | 149,630 | |
Civil Liabilitys Operations [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Coverage | 15,000 | |
Other Insurance Coverages [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Coverage | R$ 29038 | |
[1]SABESP has an agreement that allows issuing policies that total such insured amount. Of the total, R$ 167.8 thousand in policies with guarantee insurance were issued. |
Operating revenue (Details)
Operating revenue (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Net operating revenue | R$ 22055720 | R$ 19491061 | R$ 17797541 |
Sanitation Sao Paolo [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net operating revenue | 13,318,803 | 11,529,229 | 10,722,384 |
Regional System [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net operating revenue | 5,311,156 | 4,774,977 | 4,435,396 |
Sanitation Services [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net operating revenue | R$ 18629959 | R$ 16304206 | R$ 15157780 |
Operating revenue (Details 1)
Operating revenue (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Operating Revenue | ||||
Revenue from sanitation services | [1] | R$ 18629959 | R$ 16304206 | R$ 15157780 |
Construction revenue | 4,863,752 | 4,376,739 | 3,716,616 | |
Sales tax | (1,363,628) | (1,121,905) | (1,009,358) | |
Regulatory, Control and Oversight Fee (TRCF) | (74,363) | (67,979) | (67,497) | |
Net revenue | 22,055,720 | 19,491,061 | R$ 17797541 | |
Amount Corresponding To Trcf Charged From Customers | R$ 92232 | R$ 80329 | ||
[1]Includes the amount of R$ 92,232 80,329 |
Operating costs and expenses (D
Operating costs and expenses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Operating costs | R$ 14350903 | R$ 12800042 | R$ 11179667 |
Selling expenses | (911,967) | (825,879) | (751,286) |
Allowance for doubtful accounts | 782,057 | 643,730 | 444,826 |
Administrative expenses | (1,398,507) | (1,124,069) | (1,051,181) |
Total | (17,443,434) | (15,393,720) | (13,426,960) |
Salaries Payroll Charges And Benefits [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating costs | (2,285,765) | (2,026,202) | (1,958,395) |
Selling expenses | (306,864) | (265,435) | (271,565) |
Administrative expenses | (284,562) | (250,557) | (257,829) |
Total | (2,877,191) | (2,542,194) | (2,487,789) |
Pension Obligations [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating costs | (29,796) | (36,771) | (37,281) |
Selling expenses | (4,021) | (4,868) | (5,059) |
Administrative expenses | (84,670) | (72,170) | (116,941) |
Total | (118,487) | (113,809) | (159,281) |
Construction Costs [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating costs | (4,754,383) | (4,278,337) | (3,630,139) |
Total | (4,754,383) | (4,278,337) | (3,630,139) |
General Supplies [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating costs | (369,381) | (314,111) | (244,054) |
Selling expenses | (7,121) | (7,976) | (5,471) |
Administrative expenses | (23,664) | (11,209) | (14,237) |
Total | (400,166) | (333,296) | (263,762) |
Treatment Supplies [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating costs | (598,993) | (364,542) | (338,756) |
Total | (598,993) | (364,542) | (338,756) |
Outside Services [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating costs | (1,724,347) | (1,517,196) | (1,251,839) |
Selling expenses | (418,632) | (343,763) | (290,512) |
Administrative expenses | (250,293) | (250,801) | (230,054) |
Total | (2,393,272) | (2,111,760) | (1,772,405) |
Electricity One [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating costs | (1,497,644) | (1,462,776) | (1,214,831) |
Selling expenses | (1,001) | (1,340) | (1,200) |
Administrative expenses | (1,896) | (1,715) | (1,359) |
Total | (1,500,541) | (1,465,831) | (1,217,390) |
General Expenses [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating costs | (831,503) | (717,352) | (622,113) |
Selling expenses | (107,313) | (136,107) | (118,278) |
Administrative expenses | (548,626) | (357,564) | (257,693) |
Total | (1,487,442) | (1,211,023) | (998,084) |
Depreciation And Amortization [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating costs | (2,259,091) | (2,082,755) | (1,882,259) |
Selling expenses | (67,015) | (66,390) | (59,201) |
Administrative expenses | (124,743) | (104,177) | (95,652) |
Total | (2,450,849) | (2,253,322) | (2,037,112) |
Bad Debt Expense Net [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Allowance for doubtful accounts | (782,057) | (643,730) | (444,826) |
Total | (782,057) | (643,730) | (444,826) |
Tax Expense [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Administrative expenses | (80,053) | (75,876) | (77,416) |
Total | R$ 80053 | R$ 75876 | R$ 77416 |
Financial Income (Expenses) (De
Financial Income (Expenses) (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | |||
Financial expenses | R$ 1956266 | R$ 1448295 | R$ 1324759 |
Financial income | 1,091,531 | 472,408 | 336,731 |
Financial income (expenses), net before exchange rate changes | (864,735) | (975,887) | (988,028) |
Exchange rate changes, net | 492,321 | 48,464 | (2,178,343) |
Financial income (expenses), net | (372,414) | (927,423) | (3,166,371) |
Interet And Charges Local Currency [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial expenses | (954,744) | (517,235) | (348,050) |
Interet And Charges Foreign Currency [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial expenses | (47,139) | (46,793) | (136,257) |
Other Financial Expenses [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial expenses | (364,117) | (315,013) | (328,413) |
Income Tax Over International Remittance [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial expenses | (15,134) | ||
Inflation Adjustment Loans And Financing [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial expenses | (190,202) | (225,791) | (86,938) |
Other Inflation Adjustments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial expenses | (183,966) | (172,632) | (142,313) |
Interest Inflation Adjustments On Provisions [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial expenses | (216,098) | (170,831) | (267,654) |
Inflation Adjustment Gains [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial income | 541,516 | 198,907 | 120,957 |
Income On Financial Investments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial income | 417,129 | 150,632 | 75,522 |
Financial Interest Income [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial income | 195,274 | 145,866 | 162,576 |
C O F I N S And Pasep [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial income | (62,405) | (23,038) | (22,328) |
Other Financial Income [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Financial income | 17 | 41 | 4 |
Exchange Rate Changes Borrowing Financing [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Exchange rate changes, net | 491,918 | 48,522 | (2,180,241) |
Exchange Gains [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Exchange rate changes, net | 301 | (36) | 1,894 |
Other Exchange Rate Changes [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Exchange rate changes, net | R$ 102 | R$ 22 | R$ 4 |
Other operating income (expen_3
Other operating income (expenses), net (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Operating Income Expenses Net | |||
Other operating income, net | R$ 64638 | R$ 71877 | R$ 70288 |
Other operating expenses | (56,311) | (93,718) | 37,368 |
Other operating income (expenses), net | R$ 8327 | R$ 21841 | R$ 107656 |
Commitments (Details)
Commitments (Details) R$ in Thousands | Dec. 31, 2022 BRL (R$) |
IfrsStatementLineItems [Line Items] | |
Contractual obligations - expenses | R$ 3784358 |
Contractual obligations - investments | 7,543,605 |
Total | 11,327,963 |
Not later than one year [member] | |
IfrsStatementLineItems [Line Items] | |
Contractual obligations - expenses | 1,476,267 |
Contractual obligations - investments | 3,091,768 |
Total | 4,568,035 |
Later than one year and not later than three years [member] | |
IfrsStatementLineItems [Line Items] | |
Contractual obligations - expenses | 1,379,448 |
Contractual obligations - investments | 3,125,523 |
Total | 4,504,971 |
Later Than Three Year And Not Later Than Five Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Contractual obligations - expenses | 271,242 |
Contractual obligations - investments | 1,153,532 |
Total | 1,424,774 |
Later than five years [member] | |
IfrsStatementLineItems [Line Items] | |
Contractual obligations - expenses | 657,401 |
Contractual obligations - investments | 172,782 |
Total | R$ 830183 |
Supplemental cash flow inform_3
Supplemental cash flow information (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Information | |||
Total additions to contract assets (Note 14) | R$ 5240528 | R$ 4759789 | R$ 3948158 |
Total additions to intangible assets (Note 15 (b)) | 75,400 | 172,961 | 411,285 |
Items not affecting cash (see breakdown below) | (1,765,391) | (1,236,081) | (1,095,786) |
Total additions to intangible assets as per statement of cash flows | 3,550,537 | 3,696,669 | 3,299,657 |
Interest capitalized in the year (Note 14 (a)) | 622,803 | 300,792 | 238,330 |
Contractors payable | 414,645 | 218,523 | 142,514 |
Program contract commitments | 4,422 | ||
Performance agreements | 576,392 | 478,177 | 314,720 |
Right of use | 42,182 | 140,187 | 28,549 |
Construction margin (Note 26) | 109,369 | 98,402 | 85,976 |
Agreement with the municipality of Mauá | 280,774 | ||
Total | R$ 1765391 | R$ 1236081 | R$ 1095786 |
Events after the reporting pe_3
Events after the reporting period (Details) | 1 Months Ended |
Feb. 16, 2023 | |
Events After Reporting Period | |
Publication of the Preliminary Technical Note of SABESPs Extraordinary Tariff Revision | Publication of the Preliminary Technical Note of SABESP’s Extraordinary Tariff Revision |
Maturity date | Dec. 22, 2022 |
Public Consultation | Public Consultation |
Maturity date | Dec. 22, 2022 |
Maturity date | Jan. 06, 2023 |
Public Hearing | Public Hearing |
Maturity date | Jan. 05, 2023 |
Detailed Report | Publication of the Detailed Report |
Maturity date | Mar. 06, 2023 |
Extraordinary Tariff Revision | Publication of the Final Technical Note and Resolution of SABESP’s Extraordinary Tariff Revision |
Maturity date | Apr. 08, 2023 |