| Financial instruments | 17 Financial
instruments Financial
assets are recognized when the Company assumes contractual rights of receiving cash or other financial assets of agreements to which
it is a party. Financial assets are derecognized when the rights to receive cash linked to the financial asset expire or risks and benefits
were substantially transferred to third parties. Assets and liabilities are recognized when rights and/or obligations are retained by
the Company. Financial
liabilities are recognized when the Company assume contractual liabilities for settlement in cash or assumption of third-party obligations
through a contract to which it is a party. The financial liabilities are initially recognized at fair value and derecognized when settled,
extinguished, or expired. Purchases
or sales of financial assets requiring delivery of assets within a term defined by regulation or agreement in the market (negotiations
under normal conditions) are recognized on the trade date, i.e., on the date the Company undertakes to buy or sell the asset.
17.1 Classification
and measurement of financial assets and liabilities Pursuant
to IFRS 9, on initial recognition, a financial asset is classified as measured: at amortized cost, at fair value through other comprehensive
income or at fair value through income. The classification of financial assets pursuant to IFRS 9 is usually based on the business model
in which a financial asset is managed and its contractual cash flow characteristics. Embedded derivatives in which the main contract
is a financial asset within the scope of the standard are never split. Instead, the hybrid financial instrument is assessed for classification
as a whole. A
financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as measured at fair
value through income:
• it
is maintained in a business model whose objective is to keep financial assets to receive
contractual cash flows; and
• its
contractual terms generate, on specific dates, cash flows related to the payment of principal
and interest on the outstanding principal amount. A
debt instrument is measured at fair value through other comprehensive income, if it meets both of the following conditions and is not
designated as measured at fair value through income:
• it
is maintained in a business model whose objective is achieved both by receipt of contractual
cash flows and sale of financial assets; and
• its
contractual terms generate, on specific dates, cash flows related to the payment of principal
and interest on the outstanding principal amount. At
the initial recognition of an investment in an equity instrument that is not held for trading, the Company may irrevocably opt to report
subsequent alterations in the fair value of investment under other comprehensive income. This option is made on each individual investment. All
financial assets not classified as measured at amortized cost or at fair value through other comprehensive income, as described above,
are classified as fair value through income. This includes all derivative financial assets. At initial recognition, the Company may irrevocably
designate a financial asset that otherwise meets the requirements to be measured at amortized cost, at fair value through other comprehensive
income or fair value through income if this significantly eliminates or reduces an accounting mismatch that otherwise would arise (option
of fair value available in IFRS 9). A
financial asset (unless these are trade receivables without a significant financing component which is firstly measured by the price
of the transaction) is initially measured by fair value, accrued, for an item not measured at fair value through income of transaction
costs which are directly attributable to its acquisition.
• Financial
assets measured at fair value through income
• Financial
assets at amortized cost
• Financial
assets at fair value through other comprehensive income The
measurement of financial liabilities depends on their classification, as described below:
• Financial
liabilities at fair value through income:
• Financial
liabilities at amortized cost:
17.2 Derecognition
of financial assets and liabilities A
financial asset (or, where applicable, part of a financial asset or part of a group of similar financial assets) is derecognized when:
• The
rights of cash flows receivables expire; and
• The
Company transfers its rights to receive cash flows from an asset or assume an obligation
of fully paying the cash flows received to a third party, under the terms of a transfer agreement;
and (a) the Company substantially transferred all the risks and benefits related to the asset;
or (b) the Company neither transferred nor substantially retained all the risks and benefits
relating to the asset, but transferred its control. When
the Company assigns its rights to receive cash flows from an asset or enters into a transfer agreement without having substantially transferred
or retained all of the risks and benefits relating to the asset nor transferred the asset control, the asset is maintained and the related
liability is recognized. The asset transferred and related liability are measured to reflect the rights and obligations retained by the
Company. A
financial liability is derecognized when the liability underlying obligation is settled, canceled, or expired. Purchases
or sales of financial assets requiring delivery of assets within a term defined by regulation or agreement in the market (negotiations
under normal conditions) are recognized on the trade date, i.e., on the date the Company undertakes to buy or sell the asset. When
a financial liability is replaced by another of the same creditor, through substantially different terms, or terms of an existing liability
are substantially modified, this replacement or modification is treated as the derecognition of original liability and recognition of
a new liability, and the difference between respective carrying amounts is recognized in the statement of operations.
17.3 Offset
of financial instruments The
financial assets and liabilities are offset and reported net in financial statements, if, and only if, amounts recognized can be offset
and with the intention of settlement on a net basis, or realize assets and settle liabilities, simultaneously.
17.4 Derivative
financial instruments The
Company uses derivative financial instruments to limit the exposure to variation unrelated to the local market, such as interest rate
swaps and exchange rate variation swaps. These derivative financial instruments are initially recognized at fair value on the date on
which the derivative contract is executed and subsequently re-measured at fair value at the end of the reporting period. Derivatives
are recorded as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Gains
or losses resulting from changes in the fair value of derivatives are directly recorded in the statement of operations. At
the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it intends to apply
hedge accounting and its objective and risk management strategy for contracting the hedge. The documentation includes identification
of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the Company will assess the effectiveness
of the changes in the hedging instrument’s fair value in offsetting the exposure to changes in the fair value of the hedged item
or cash flow attributable to the hedged risk. These hedges are expected to be highly effective in offsetting changes in the fair value
or cash flow and are assessed on an ongoing basis to determine if they have been highly effective throughout the periods for which they
were designated. The
following are recognized as fair value hedges:
· The
change in the fair value of a derivative financial instrument classified as fair value hedging
is recognized as financial result. The change in the fair value of the hedged item is recorded
as a part of the carrying amount of the hedged item and is recognized in the statement of
operations; and
· In
order to calculate the fair value, debts and swaps are measured through rates available in
the financial market and projected up to their maturity date. The discount rate used in the
calculation by the interpolation method for borrowings denominated in foreign currency is
developed through CDI curves, free coupon and DI, indexes disclosed by the B3, whereas for
borrowings denominated in Reais, the Company uses the DI curve, an index published by the
CETIP (Securities Custodial and Clearing Center) and calculated through the exponential interpolation
method. The
Company uses financial instruments only to hedge identified, risks limited to 100% of the value of these risks. Derivative instruments
transactions are exclusively used to reducing the exposure to the risk of changes in interest rates and foreign currency fluctuation
and maintaining a balanced capital structure.
17.5 Cash
flow hedge Derivative
instruments are recorded as cash flow hedge, using the following principles:
· The
effective portion of the gain or loss on the hedge instrument is recognized directly in shareholders’
equity in other comprehensive income. In case the hedge relationship no longer meets the
hedging ratio but the objective of management risk remains unchanged, the Company should
“rebalance” the hedge ratio to meet the eligibility criteria.
· Any
remaining gain or loss on the hedge instrument (including arising from the "rebalancing"
of the hedge ratio) is ineffective, and therefore should be recognized in statement of operations.
· Amounts
recorded in other comprehensive income are immediately transferred to the statement of operations
together with the hedged transaction by affecting the statement of operations, for example,
when the hedge financial income or expense is recognized or when a forecast sale occurs.
When the hedged item is the cost of a non-financial asset or liability, the amounts recorded
in equity are transferred to the initial carrying amount of the non-financial asset or liability.
· The
Company should prospectively discontinue hedge accounting only when the hedge relationship
no longer meets the qualification criteria (after taking into account any rebalancing of
the hedge relationship).
· If
the expected transaction or firm commitment is no longer expected, amounts previously recognized
in shareholders’ equity are transferred to the statement of operations. If the hedging
instrument expires or is sold, terminated or exercised without replacement or rollover, or
if its hedge classification is revoked, gains or losses previously recognized in comprehensive
income remain deferred in equity in other comprehensive income until the expected transaction
or firm commitment affect the statement of operations.
17.6 Impairment
of financial assets The
impairment loss model applies to financial assets measured at amortized cost, contractual assets, and debt instruments measured at fair
value through other comprehensive income but does not apply to investments in equity instruments (shares) or financial assets measured
at fair value through income. Pursuant
to IFRS 9, provisions for losses are measured at one of the following bases:
· Loan
losses expected for 12 months (general model): these are loan losses resulting from possible
default events within 12 months after the end of the reporting period, and subsequently,
in case of a deterioration of credit risk for the entire life of the instrument.
· Loan
losses expected for entire life (simplified model): these are loan losses resulting from
all possible default events over the expected life of a financial instrument.
· Practical
expedient: these are loan losses expected and consistent with reasonable and sustainable
information available, at the end of the reporting period on past events, current conditions,
and estimates of future economic conditions that allow verifying probable future loss based
on the historical loan loss occurred in accordance with instruments maturity. The
Company measures provisions for trade receivable losses and other receivables and contractual assets through an amount corresponding
to the loan loss expected for the entire life, and for trade receivables, whose receivables portfolio is fragmented, rents receivable,
the practical expedient is applied by adopting a matrix of losses for each maturity level. When
determining whether the credit risk of a financial asset significantly increased from initial recognition, and when estimating the expected
loan losses, the Company considers reasonable and sustainable information which is relevant and available without cost or excessive effort.
This includes qualitative and quantitative information and analyses, based on the Company’s historical experience, the assessment
of credit, and considering projection information. The
Company assumes that the credit risk in a financial asset significantly increased if it is more than 90 days overdue. The
Company considers a financial asset in default when:
· it
is unlikely that the debtor will fully pay its loan obligations to the Company, without resorting
to collateral (if any); or
· the
financial asset is more than 90 days overdue. The
Company determines the credit risk of a debt instrument by analyzing the payment history, financial, and current macroeconomic conditions
of counterparty and assessment of rating agencies, where applicable, thereby evaluating each instrument, individually. The
maximum period considered in the estimate of expected receivable loss is the maximum contractual period during which the Company is exposed
to the credit risk.
· Measurement
of expected loan losses Expected
loan losses are discounted by the effective interest rate of a financial asset.
· Financial
assets with credit recovery problems
· Reporting
of impairment loss For
financial instruments measured at fair value through other comprehensive income, the provision for losses is recognized in other comprehensive
income, instead of reducing the asset’s carrying amount. Impairment
losses related to trade receivables and other receivables, including contractual assets, are reported separately in the statement of
operations and other comprehensive income. Losses of recoverable amounts from other financial assets are stated under "selling expenses”.
· Trade
receivables and contractual assets: Positions
within each group were segmented based on common characteristics of credit risk, such as:
· Level
of credit risk and loss history for wholesale clients and property lease; and
· Status
of default risk and loss history for credit card companies and other clients. The
main financial instruments and their carrying amounts, by category, are as follows: Schedule of financial instruments and their carrying amounts
Carrying
amounts
Notes 2021 2020
Financial
assets
Amortized
cost
Related
parties - assets 11.1 114 178
Accounts
receivable and other accounts receivable 169 117
Fair
value through income
Cash
and cash equivalents 7 2,550 3,532
Financial
instruments - fair value hedge- long position 17.12.1 32 68
Fair
value through other comprehensive income
Accounts
receivable with credit card companies and sales tickets 155 99
Financial
liabilities
Other
financial liabilities - amortized cost
Related
parties - liabilities 11.1 (368 ) (41 )
Trade
payables 16 (5,942 ) (5,058 )
Financing
through acquisition of assets (197 ) (34 )
Borrowings
and financing 17.12.1 (1,210 ) (897 )
Debentures 17.13 (6,446 ) (6,599 )
Lease
liabilities 19.2 (4,051 ) (2,776 )
Fair
value through income
Borrowings
and financing, including derivatives 17.12.1 (341 ) (335 )
Financial
instruments - Fair value hedge - short position 17.12.1 (36 ) —
Net
exposure (15,571 ) (11,746 )
The
fair value of other financial instruments detailed in table above approximates the carrying amount based on the existing terms and conditions.
The financial instruments measured at amortized cost, the related fair values of which differ from the carrying amounts, are disclosed
in note 17.10.
17.7 Considerations
on risk factors that may affect the businesses of the Company
17.7.1 Credit
Risk
· Cash
equivalents: In order to minimize credit risks, the Company adopts investments policies at
financial institutions approved by the Company’s Financial Committee, also taking into
consideration monetary limits and financial institution evaluations, which are regularly
updated.
· Trade
receivables: Credit risk related to trade receivables is minimized by the fact that a large
portion of sales are paid with credit cards, and the Company sells these receivables to banks
and credit card companies, aiming to strengthen working capital. The sales of receivables
result in derecognition of the accounts receivable due to the transfer of the credit risk,
benefits and control of such assets. Additionally, regarding the trade receivables collected
in installments, the Company monitor the risk through the credit concession and by periodic
analysis of the provision for losses. The
Company also has counterparty risk related to derivative instruments, which is mitigated by the Company carrying out transactions, according
to policies approved by governance boards. There
are no amounts receivable that are individually, higher than 5% of accounts receivable or sales, respectively.
17.7.2 Interest
rate risk The
Company obtains borrowings and financing with major financial institutions for cash needs for investments. As a result, the Company is
mainly exposed to relevant interest rates fluctuation risk, especially in view of derivatives liabilities (foreign currency exposure
hedge) and CDI Indexed debts. The balance of cash and cash equivalents, indexed to CDI, partially offsets the interest rate risk.
17.7.3 Foreign
currency exchange rate risk The
Company is exposed to exchange rate fluctuations, which may increase outstanding balances of foreign currency-denominated borrowings.
The Company uses derivatives, such as swaps, aiming to mitigate the foreign currency exchange rate risk, converting the cost of debt
into domestic currency and interest rates.
17.7.4 Capital
risk management The
main objective of the Company’s capital management is to ensure that the Company maintains its credit rating and a well-balanced
equity ratio, in order to support businesses and maximize shareholder value. The Company manages the capital structure and makes adjustments
taking into account changes in the economic conditions. The
Company’s capital structure is as follows: Schedule of capital structure
As
of December 31,
2021 2020
Borrowings,
financing and debentures (8,033 ) (7,831 )
(-) Cash
and cash equivalents 2,550 3,532
(-)
Derivative financial instruments 32 68
Net
debt (5,451 ) (4,231 )
Shareholders´
equity 2,766 1,347
%
Net debt over shareholders´ equity 197 % 314 %
17.7.5 Liquidity
risk management The
Company manages liquidity risk through the daily analysis of cash flows and maturities of financial assets and liabilities. The
table below summarizes the aging profile of the Company’s financial liabilities as of December 31, 2021. Schedule of aging profile of financial liabilities
Less
than 1 year 1
to 5 years More
than 5 years Total
Borrowings
and financing 529 1,347 9 1,885
Debentures 399 7,343 3,035 10,777
Derivative financial instruments (73 ) (284 ) 288 (69 )
Lease liabilities 628 2,868 4,597 8,093
Trade
payable 5,942 — — 5,942
Total 7,425 11,274 7,929 26,628
The
table above was prepared considering the undiscounted cash flows of financial liabilities based on the earliest date the Company may
be required to make a payment or be eligible to receive a payment. To the extent that interest rates are floating, the non-discounted
amount is obtained based on interest rate curves in the six months ended on December 31, 2021. Therefore, certain balances are not consistent
with the balances reported in the balance sheets.
17.8 Derivative
financial instruments Swap
transactions are designated as fair value hedges, with the objective to hedge the exposure to changes in foreign exchange rates and fixed
interest rates (U.S. dollars), converting the debt into domestic interest rates and currency. On
December 31, 2021, the notional amount of these contracts was R$1,888 (R$309 on December 31, 2020). These transactions are usually contracted
under the same term of amounts and carried out with a financial institution of the same economic group, observing the limits set by Management. According
to the Company’s treasury policies, swaps cannot be contracted with restrictions (“caps”), margins, as well as return
clauses, double index, flexible options or any other types of transactions different from traditional “swap” and “forwards”
transactions to hedge against debts. The
Company’s internal controls were designed to ensure that transactions executed conform to the treasury policy. The
Company calculates the effectiveness of hedge transactions at the inception date and on a continuing basis. Hedge transactions contracted
in the year ended December 31, 2021 were effective in relation to the covered risk. For derivative transactions that qualify as hedge
accounting, the debt which is the hedged item, is also adjusted at fair value. Schedule of hedge position
Notional
value Fair
value
2021 2020 2021 2020
Swap
with hedge accounting
Hedge
purpose (debt) 1,888 309 1,869 335
Long position
Fixed
rate 106 106 60 72
USD
+ Fixed 282 203 281 263
Hedge
- CRI 1,500 — 1,528 —
Short
position (1,888 ) (309 ) (1,873 ) (267 )
Net
hedge position — — (4 ) 68 Realized
and unrealized gains and losses on these contracts during the year ended December 31, 2021, are recorded as financial revenues or expenses
and the balance payable at fair value is R$4 (balance receivable of R$68 as of December 31, 2020). Assets are recorded as “financial
instruments” and liabilities as “borrowings and financing”. The
effects of the fair value hedge recorded in the statement of operations for the year ended December 31, 2021, resulted in a loss of R$4,
recorded under debt of cost, note 26 (gain of R$68 as of December 31, 2020 and gain of R$30 as of December 31, 2019).
17.8.1 Fair
values of derivative financial instruments Fair
value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s
length transaction. Fair
values are calculated using projected the future cash flow, using the CDI curves and discounting to present value, using CDI market rates
for swap both disclosed by the B3. The
fair value of exchange coupon swaps versus CDI rate was determined based on market exchange rates effective at the date of the financial
statements and projected based on the currency coupon curves. In
order to calculate the coupon of foreign currency indexed-positions, the straight-line convention - 360 consecutive days was adopted
and to calculate the coupon of CDI indexed-positions, the exponential convention - 252 business days was adopted.
17.9 Sensitivity
analysis of financial instruments According
to Management’s assessment, the most probable scenario is what the market has been estimating through market curves (currency and
interest rates) of the B3, on the maturity dates of each transaction. Therefore,
in the probable scenario (I) there is no impact on the fair value of financial instruments. For scenarios (II) and (III), for the exclusive
effect, a deterioration from 25% to 50% was taken into account, respectively, on risk variables, up to one year of financial instruments. For
a probable scenario, the weighted exchange rate was R$6.17 on the due date, and the interest rate weighted was 11.40% per year. In
the case of derivative financial instruments (aiming at hedging the financial debt), changes in scenarios are accompanied by respective
hedges, indicating that the effects are not significant. The
Company disclosed the net exposure of derivative financial instruments, each of the scenarios mentioned above in the sensitivity analysis
as follows: Schedule of net exposure of derivative financial instruments
Market
projections
Transactions Notes Risk(CDI
Increase) Carrying
Amount Balance
at 2021 Scenario
(I) Scenario
(II) Scenario
(III)
Borrowings
and financing 17.12.1 CDI
+ 1.94% per year 1,551 (1,499 ) 155 118 82
Fixed rate
swap contract (short position) 17.12.1 TR
+ 9.80% per year (32 ) (58 ) (53 ) (64 ) (69 )
Foreign
exchange swap contract (short position) 17.12.1 CDI
+ 1.25% per year 36 (291 ) (58 ) (49 ) (63 )
Debentures 17.12.1 CDI
+ 1.48% per year 6,446 (6,523 ) (1,163 ) (1,378 ) (1,593 )
Total
net effect (loss) 8,001 (8,371 ) (1,119 ) (1,373 ) (1,643 )
17.10 Fair
value measurement The
Company discloses the fair value of financial instruments and other assets and liabilities measured or disclosed at fair value in accordance
with IFRS 13. The fair value hierarchy levels are defined below: Level
1: Quoted (unadjusted) market prices in active markets for assets or liabilities. Level
2: Valuation techniques for which the lowest level inputs that is significant to the fair value measurement is directly or indirectly
observable. Level
3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The
data used in fair value models is obtained, whenever possible, from observable markets or from information in comparable transactions
in the market, the benchmarking of the fair value of similar financial instruments, the analysis of discounted cash flows or other valuation
models. Judgment is used in the determination of assumptions in relation to liquidity risk, credit risk and volatility. Changes in assumptions
may affect the reported fair value of financial instruments. In
the case of financial instruments not actively negotiated, the fair value is based on valuation techniques defined by the Company and
compatible with usual market practices. These techniques include the use of recent market operations between independent parties, the
benchmarking of similar financial instruments’ fair value, the analysis of discounted cash flows, or other valuation models. The
fair values of cash and cash equivalents, trade receivables and trade payables approximate their carrying amounts. The
table below sets forth the fair value hierarchy of financial assets and liabilities measured at fair value of financial instruments measured
at amortized cost, for which the fair value has been disclosed in the financial statements: Schedule of fair value hierarchy of financial assets and liabilities
Carrying
amount Fair
value
2021 2020 2021 2020 Level
Trade
receivables with credit cards 155 99 155 99 2
Swaps
of annual rates between currencies (11 ) 57 (11 ) 57 2
Interest
rate swaps 4 11 4 11 2
Interest
rate swaps - CRI 3 — 3 — 2
Borrowings
and financing (fair value) (341 ) (335 ) (341 ) (335 ) 2
Borrowings
and financing (amortized cost) (7,656 ) (7,496 ) (7,372 ) (6,529 ) 2
(7,846 ) (7,664 ) (7,562 ) (6,697 )
There
was no change between the fair value measurements hierarchy levels during the year ended December 31, 2021. Cross-currency
and interest rate swaps and borrowings and financing are classified as level 2 since the fair value of such financial instruments was
determined based on readily observable inputs, such as expected interest rate and current and future foreign exchange rate.
17.11 Position
of operations with derivative financial instruments The
Company has derivative contracts with the following financial institutions: Itaú BBA, Scotiabank and BR Partners. The
outstanding derivative financial instruments are presented in the table below: Schedule of consolidated position of outstanding derivative transactions
As
of December 31,
Description
Risk Notional
(millions) Due
date 2021 2020
Debt
USD
– BRL US$
50 2021 — 57
USD –
BRL US$ 50 2023 (11 ) —
Debt
CRI –
BRL R$ 1,500 2028
and 2031 3 —
Interest
rate swaps registered at CETIP
Fixed rate
x CDI R$ 54 2027 2 5
Fixed
rate x CDI R$
52 2027 2 6
Derivatives
- Fair value hedge – Brazil (4 ) 68
17.12 Borrowings
and financing
17.12.1 Debt
breakdown Schedule of debt weighted average
As
of December 31,
Weighted
average rate 2021 2020
Current
Debentures
and promissory notes
Debentures
and promissory notes CDI
+ 1.53% per year 194 1,864
Borrowing
costs (14 ) (24 )
Total
debentures and promissory notes 180 1,840
Borrowings
and financing in domestic currency
Working
capital TR
+ 9.80% 14 12
Working
capital CDI
+ 2.33% per year 419 9
Borrowing
costs (4 ) (5 )
Total
domestic currency 429 16
In
foreign currency
Working
capital CDI
+ 1.25% per year 1 264
Total
foreign currency 1 264
Total
of borrowings and financing 430 280
Derivative
financial instruments
Swap
contracts CDI
+ 0.86% per year (4 ) (57 )
Swap
contracts CDI
+ 1.35% per year 3 —
Total
derivative financial instruments (1 ) (57 )
Total
current 609 2,063
As
of December 31,
Weighted
average rate 2021 2020
Non-current
Debentures
and promissory notes
Debentures
and promissory notes CDI
+ 1.48% per year 6,329 4,780
Borrowing
costs (63 ) (21 )
Total
debentures and promissory notes 6,266 4,759
Borrowings
and financing in domestic currency
Working
capital TR
+ 9.80% 47 60
Working
capital CDI
+ 1.74% per year 800 901
Borrowing
costs (5 ) (9 )
Total
domestic currency 842 952
In
foreign currency
Working
capital CDI
+ 1.25% per year 279 —
Total
foreign currency 279 —
Total
of borrowings and financing 1,121 952
Derivative
financial instruments
Swap
contracts CDI
+ 0.03% per year (28 ) (11 )
Swap
contracts CDI
+ 1.35% per year 33 —
Total
derivative financial instruments 5 (11 )
Total
non-current 7,392 5,700
Total 8,001 7,763
Current
assets 4 57
Non-current
assets 28 11
Current
liabilities 613 2,120
Non-current
liabilities 7,420 5,711
17.12.2 Rollforward Schedule of rollforward of financial instruments
Amounts
Balance
as January 1, 2019 726
Funding
- working capital 9,395
Interest
provision 246
Swap
contracts (16 )
Mark-to-market (46 )
Exchange
rate and monetary variation (29 )
Borrowing
costs 21
Interest
amortization (116 )
Principal
amortization (6,102 )
Swap
amortization 95
Swap
amortization 4,527
Conversion
adjustment to reporting currency 80
Balance
as of December 31, 2019 8,781
Funding
- working capital 2,852
Interest
provision 486
Swap
contracts (60 )
Mark-to-market 12
Exchange
rate and monetary variation 57
Debt
modification impact 71
Borrowing
costs 42
Interest
amortization (549 )
Principal
amortization (2,543 )
Swap
amortization 13
Conversion
adjustment to reporting currency 172
Discontinued
operations (1,571 )
Balance
as of December 31, 2020 7,763
Funding
- working capital 6,090
Interest
provision 559
Swap
contracts 39
Mark-to-market 31
Exchange
rate and monetary variation 5
Debt
modification impact (71 )
Borrowing
costs 64
Interest
amortization (406 )
Principal
amortization (6,075 )
Swap
amortization 2
Balance
as of December 31, 2021 8,001
17.12.3 Schedule
of non-current maturities Schedule of noncurrent maturities
Maturity Amounts
From 1 to 2
years 1,648
From 2 to 3 years 3,602
From 3 to 4 years 802
From 4 to 5 years 572
More
than 5 years 836
Total 7,460
Borrowing
Cost (68 )
Total 7,392
17.13 Debentures
and promissory notes Schedule of debentures and promissory notes
Date As
of December 31,
Type Issue
amount Outstanding
Debentures (units) Issuance Maturity Annual
financial charges Unit
price (in Reais) 2021 2020
First
Issue of Promissory Notes – 2 nd non-preemptive
right 50 1 7/4/2019 7/5/2021 CDI
+ 0.72% per year 52,998,286 — 53
First
Issue of Promissory Notes – 3 rd non-preemptive
right 50 1 7/4/2019 7/4/2022 CDI
+ 0.72% per year 56,087,744 57 53
First
Issue of Promissory Notes – 4 th non-preemptive
right 250 5 7/4/2019 7/4/2023 CDI
+ 0.72% per year 56,087,744 281 267
First
Issue of Promissory Notes – 5 th non-preemptive
right 200 4 7/4/2019 7/4/2024 CDI
+ 0.72% per year 56,087,744 225 214
First
Issue of Promissory Notes – 6 th non-preemptive
right 200 4 7/4/2019 7/4/2025 CDI
+ 0.72% per year 56,087,744 225 213
First
Issue of Debentures – 2 nd non-preemptive
right 2,000 200,000 9/4/2019 8/20/2021 CDI
+ 2.34% per year 876 — 1,762
First
Issue of Debentures – 3 rd non-preemptive
right 2,000 200,000 9/4/2019 8/20/2022 CDI
+ 2.65% per year 1,009 — 2,033
First
Issue of Debentures – 4 th non-preemptive
right 2,000 200,000 9/4/2019 8/20/2023 CDI
+ 3.00% per year 1,005 — 2,049
Second
Issue of Debentures – 1 st non-preemptive
right 940,000 940,000 6/1/2021 5/20/2026 CDI +
1.70% per year 1,011 951 —
Second
Issue of Debentures – 2 nd non-preemptive
right 660,000 660,000 6/1/2021 5/22/2028 CDI +
1.95% per year 1,012 6 |
