Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Amendment Flag | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40818 |
Entity Registrant Name | Getnet Adquirencia E Servicos Para Meios De Pagamento S.A. |
Entity Incorporation, State or Country Code | D5 |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001867325 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Interactive Data Current | Yes |
ICFR Auditor Attestation Flag | true |
Entity Common Stock, Shares Outstanding | 950,718,477 |
Entity Address, Address Line One | Avenida Presidente Juscelino Kubitschek |
Entity Address, Address Line Two | 2041, Suite 121, Block A |
Entity Address, Address Line Three | Condominium WTORRE JK, Vila Nova Conceição |
Entity Address, City or Town | São Paulo |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 04543-011 |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Name | PricewaterhouseCoopers Auditores Independentes Ltda. |
Auditor Firm ID | 1351 |
Auditor Location | São Paulo, Brazil |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | Pedro Carlos Araujo Coutinh |
Entity Address, Address Line One | Avenida Presidente Juscelino Kubitschek |
Entity Address, Address Line Two | 2041, Suite 121, Block A |
Entity Address, Address Line Three | Condominium WTORRE JK, Vila Nova Conceição |
Entity Address, City or Town | São Paulo |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 04543-011 |
Contact Personnel Fax Number | +55 (11) 5184-9002 |
Common Shares underlying units | |
Document Information [Line Items] | |
Title of 12(b) Security | Units, each composed of one common share, no par value, and one preferred share, no par value |
Security Exchange Name | NASDAQ |
Common shareholders | |
Document Information [Line Items] | |
Title of 12(b) Security | Common Shares, no par value |
Preferred shareholders | |
Document Information [Line Items] | |
Title of 12(b) Security | Preferred Shares, no par value |
American Depositary Shares (“ADSs”) | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | GET |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | R$ 670441 | R$ 265096 |
Financial investments | 1,430,653 | 925,383 |
Accounts receivable | 54,578,684 | 39,968,233 |
Prepaid and recoverable taxes | 149,235 | 52,277 |
Inventories | 40,899 | 61,559 |
Other assets | 200,491 | 205,718 |
Total current assets | 57,070,403 | 41,478,266 |
NONCURRENT ASSETS | ||
Deferred income tax and social contribution | 422,034 | 73,859 |
Property and equipment | 631,598 | 613,861 |
Right-of-use assets | 25,703 | 21,905 |
Intangible assets | 885,083 | 833,807 |
Total noncurrent assets | 1,964,418 | 1,543,432 |
TOTAL ASSETS | 59,034,821 | 43,021,698 |
CURRENT LIABILITIES | ||
Accounts payable | 51,610,405 | 38,767,156 |
Loans and borrowings | 3,464,649 | 1,063,347 |
Lease liabilities | 9,742 | 4,265 |
Income taxes payables and other tax payables | 30,976 | 41,720 |
Dividends payable | 298,000 | 29,227 |
Other liabilities | 214,132 | 271,426 |
Total current liabilities | 55,627,904 | 40,177,141 |
NONCURRENT LIABILITIES | ||
Loans and borrowings | 25,209 | 27,810 |
Lease liabilities | 16,573 | 18,784 |
Provision for tax, civil and labor risks | 15,013 | 11,425 |
Deferred income tax and social contribution | 3,345 | 7,876 |
Other liabilities | 22,858 | 35,779 |
Total noncurrent liabilities | 82,998 | 101,674 |
EQUITY | ||
Share capital | 1,422,496 | 1,422,496 |
Capital reserve | 404,933 | 6,400 |
Accumulated other comprehensive income | (242) | (651) |
Retained earnings | 1,492,829 | 1,314,638 |
Participation of non-controlling shareholders | 3,903 | 0 |
Total equity | 3,323,919 | 2,742,883 |
TOTAL LIABILITIES AND EQUITY | R$ 59034821 | R$ 43021698 |
Consolidated Statement of Incom
Consolidated Statement of Income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated statement of other comprehensive income | |||
Revenue from services | R$ 2853141 | R$ 2320495 | R$ 2662893 |
Costs of services | (1,758,858) | (1,426,192) | (1,086,511) |
Gross profit | 1,094,283 | 894,303 | 1,576,382 |
Selling, General and Administrative expenses | (444,281) | (348,540) | (440,668) |
Other expenses, net | (95,523) | (55,769) | (109,679) |
Operating profit | 554,479 | 489,994 | 1,026,035 |
Finance income, net | 8,529 | 6,193 | 73,826 |
Profit before income taxes | 563,008 | 496,187 | 1,099,861 |
Current income tax and social contribution | (36,551) | (127,984) | (330,012) |
Deferred income tax and social contribution | (50,533) | (7,190) | 24,183 |
Net income for the year | 475,924 | 361,013 | 794,032 |
Participation of non-controlling shareholders | 267 | 0 | 0 |
Net income attributable to controlling shareholders | R$ 476191 | R$ 361013 | R$ 794032 |
Basic and diluted earnings per share for profit attributable to common shareholders (in R$) | R$ 0.24 | R$ 0.19 | R$ 0.43 |
Basic and diluted earnings per share for profit attributable to preferred shareholders (in R$) | R$ 0.27 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated statement of other comprehensive income | |||
Net income for the year | R$ 475924 | R$ 361013 | R$ 794032 |
Change in fair value of financial instruments classified as Fair Value Through Other Comprehensive Income | 620 | (705) | 202 |
Deferred income Tax | (211) | 240 | (69) |
Total comprehensive income for the year | 476,333 | 360,548 | 794,165 |
Total comprehensive income allocated to: | |||
Controlling shareholders | 476,600 | 360,548 | 794,165 |
Non-controlling interests | (267) | 0 | 0 |
Total comprehensive income for the year | R$ 476333 | R$ 360548 | R$ 794165 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - BRL (R$) R$ in Thousands | Total | Equity attributable to controlling interest | Share capital | Capital reserves | Legal reserve | Statutory reserve | Accumulated profit | Accumulated other comprehensive income | Participation of non-controlling shareholders |
Equity at beginning of the period at Dec. 31, 2018 | R$ 2556656 | R$ 2556656 | R$ 1189503 | R$ 6400 | R$ 82351 | R$ 1278721 | R$ 0 | R$ 319 | R$ 0 |
Net income for the year | 794,032 | 794,032 | 0 | 0 | 0 | 0 | 794,032 | 0 | 0 |
Allocation: | |||||||||
Legal reserve | 0 | 0 | 0 | 0 | 29,269 | 0 | (29,269) | 0 | 0 |
Dividends and Interest on capital | (139,022) | (139,022) | 0 | 0 | 0 | 0 | (139,022) | 0 | 0 |
Reserve for dividend equalization | 0 | 0 | 0 | 0 | 0 | 414,146 | (414,146) | 0 | 0 |
Reserve for working capital strengthening | 0 | 0 | 0 | 0 | 0 | 211,595 | (211,595) | 0 | 0 |
Other comprehensive income | 133 | 133 | 0 | 0 | 0 | 0 | 0 | 133 | 0 |
Equity at end of the period at Dec. 31, 2019 | 3,211,799 | 3,211,799 | 1,189,503 | 6,400 | 111,620 | 1,904,462 | 0 | (186) | 0 |
Net income for the year | 361,013 | 361,013 | 0 | 0 | 0 | 0 | 361,013 | 0 | 0 |
Capital increase | 0 | 0 | 232,993 | 0 | 0 | (232,993) | 0 | 0 | 0 |
Allocation: | |||||||||
Legal reserve | 0 | 0 | 0 | 0 | 14,498 | 0 | (14,498) | 0 | 0 |
Dividends and Interest on capital | (829,464) | (829,464) | 0 | 0 | 0 | (760,361) | (69,103) | 0 | 0 |
Reserve for dividend equalization | 0 | 0 | 0 | 0 | 0 | 138,706 | (138,706) | 0 | 0 |
Reserve for working capital strengthening | 0 | 0 | 0 | 0 | 0 | 138,706 | (138,706) | 0 | 0 |
Other comprehensive income | (465) | (465) | 0 | 0 | 0 | 0 | 0 | (465) | 0 |
Equity at end of the period at Dec. 31, 2020 | 2,742,883 | 2,742,883 | 1,422,496 | 6,400 | 126,118 | 1,188,520 | 0 | (651) | 0 |
Net income for the year | 475,924 | 476,191 | 0 | 0 | 0 | 0 | 476,191 | 0 | (267) |
Non-controlling interests on acquisition of subsidiary | 4,170 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,170 |
Allocation: | |||||||||
Legal reserve | 0 | 0 | 0 | 0 | 23,688 | 0 | (23,688) | 0 | 0 |
Dividends and Interest on capital | (298,000) | (298,000) | 0 | 0 | 0 | (211,175) | (86,825) | 0 | 0 |
Reserve for dividend equalization | 0 | 0 | 0 | 0 | 0 | 182,839 | (182,839) | 0 | 0 |
Reserve for working capital strengthening | 0 | 0 | 0 | 0 | 0 | 182,839 | (182,839) | 0 | 0 |
Tax credit – spin-off | 398,533 | 398,533 | 0 | 398,533 | 0 | 0 | 0 | 0 | 0 |
Other comprehensive income | 409 | 409 | 0 | 0 | 0 | 0 | 0 | 409 | 0 |
Equity at end of the period at Dec. 31, 2021 | R$ 3323919 | R$ 3320016 | R$ 1422496 | R$ 404933 | R$ 149806 | R$ 1343023 | R$ 0 | R$ 242 | R$ 3903 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Cash flows from operating activities | ||||
Net income for the year | R$ 475924 | R$ 361013 | R$ 794032 | |
Adjustments to reconcile net income for the year to net cash generated by operating activities: | 557,719 | 369,080 | 375,068 | |
Depreciation and amortization | 368,438 | 322,232 | 277,895 | |
Foreign exchange gain (loss) | 93 | (16,467) | 3,772 | |
Provision for expected credit losses | 3,408 | 21,517 | 73,338 | |
Provision for labor, tax and civil risks | 3,588 | 3,924 | 1,397 | |
Loss from the sale of property and equipment and intangible | 9,766 | 9,250 | 11,424 | |
Provision for impairment (reversal) | 9,121 | (9,032) | 18,420 | |
Interest on Loans and borrowings | 112,772 | 30,466 | 13,005 | |
Deferred taxes | 50,533 | 7,190 | (24,183) | |
(Increase) decrease in operating assets: | (14,770,215) | (16,375,812) | (1,321,197) | |
Prepaid and recoverable taxes | (96,958) | (21,085) | (11,364) | |
Accounts receivable | (14,613,859) | (16,254,164) | (1,305,344) | |
Other assets | (59,398) | (100,563) | (4,489) | |
Increase (decrease) in operating liabilities: | 12,745,552 | 16,073,741 | (1,586,134) | |
Accounts payable | 12,837,734 | 15,922,589 | (1,701,899) | |
Income taxes payables and other tax payables | [1] | 101,227 | (2,684) | (51,558) |
Other liabilities | (76,499) | 278,752 | 451,924 | |
Income taxes paid | (116,910) | (124,916) | (284,601) | |
Net cash (used in) generated by operating activities: | (991,020) | 428,022 | (1,738,231) | |
Cash flows from investing activities | ||||
Financial investments | (414,238) | 499,696 | 375,473 | |
Disposal of subsidiary, net of cash sold | 0 | 1,100 | 3,000 | |
Purchase of property and equipment | (375,335) | (310,167) | (491,819) | |
Purchase of intangible assets | (48,637) | (92,760) | (142,087) | |
Payment for acquisition of subsidiary, net of cash acquired | (9,260) | 0 | 0 | |
Disposal of property and equipment and intangible assets | 252 | 464 | 1 | |
Net cash (used in) generated by investing activities | (847,218) | 98,333 | (255,432) | |
Cash flows from financing activities | ||||
Proceeds from Loans and Borrowings | 6,510,906 | 2,842,742 | 599,160 | |
Payment of Loans and borrowings | (4,164,474) | (2,399,622) | (50,054) | |
Payment of dividends | (29,227) | (867,746) | (131,339) | |
Interest on borrowings paid and lease liabilities | (59,213) | (33,060) | (5,271) | |
Net cash generated (used in) by financing activities | 2,257,992 | (457,686) | 412,496 | |
Effect of exchange rate changes on cash and cash equivalents | (14,409) | (15,275) | (1,068) | |
Increase in cash and cash equivalents | 405,345 | 53,394 | (1,582,235) | |
Cash and cash equivalents at the beginning of the year | 265,096 | 211,702 | 1,793,937 | |
Cash and cash equivalents at the end of the year | 670,441 | 265,096 | 211,702 | |
Increase in cash and cash equivalents | R$ 405345 | R$ 53394 | R$ 1582235 | |
[1] | For better presentation purposes the disclosure items of "Deferred income tax and social contribution" and "Deferred taxes and contributions payable" have been reallocated to the item "Income taxes payables and other tax payables" in the operating activities. |
General information
General information | 12 Months Ended |
Dec. 31, 2021 | |
General information | |
General information | 1. General Information Getnet Adquirência e Serviços para Meios de Pagamento S.A. ("Getnet" or "Company" or "Parent"), formerly controlled by Banco Santander (Brasil) S.A. ("Banco Santander"), on February 25, 2021 had its partial spin-off approved, becoming indirectly controlled by Banco Santander S.A. ("Banco Santander Spain"). After, on November 11, 2021, it became controlled by PagoNxt Merchant Solutions S.L., ("PagoNxt Spain"), company that is also part of Santander Business Group ("Santander Group"), from the partial spin-off of the former controlling shareholders' interests. The change in the ownership interest is part of a corporate reorganization of the Santander Group and does not present any change in the final controlling shareholders or in the management structure of the Company. Getnet, constituted in the form of a corporation, domiciled on Av. Pres. Juscelino Kubitschek, 2041 Merchant acquisition revenue related to the accreditation for retailer and service providers establishments to accept credit and debit cards; Processing services revenue related to the capture, transmission and processing of data and information using a network consisting of different types of equipment; POS rental revenue related to installing, uninstalling, monitoring, supplying, providing maintenance, and leasing equipment used in transaction capture networks, such as Point-of-Sales (“POS”) devices; Recharges sale revenue where it acts as a distributor of telecommunication operators for the commercialization of telephony and data recharge digital credits. Profit share revenue that are recognized at the time of transfer of the respective prepayments by Santander Brazil (further details note 11 Other revenue from: i) the management of payments and receipts in the establishments accredited to Getnet’s network; ii) developing and selling or licensing software, iii) selling products or distributing services from entities that provide registry information; iv) providing technical, commercial, and logistic infrastructure services for the businesses related to the receipt of bills from dealers, banks, and other collection documents and issuing electronic currency pursuant to the regulations of the BACEN by providing the following services: (a) management of prepaid payment accounts; (b) provision of payment transactions based on electronic currency transferred to prepaid payment accounts; and, (c) conversion of funds into physical or book currency, with the possibility of enabling its acceptance through the settlement in any prepaid payment account it manages. The s pin-off of Getnet from Banco Santander (Brasil) S.A. On February 25, 2021, Banco Santander (Brasil) S.A. (“Santander Brazil”) informed its shareholders and the market of the approval by its Board of Executive Directors of the proposed segregation of the equity interests held by Santander Brazil in its wholly-owned subsidiary Getnet, through a spin-off from Santander Brazil, deliberated by its shareholders at an extraordinary shareholders’ meeting. Additionally, at the same date, Santander Brazil’s Supervisory Board issued a favorable opinion on the proposed spin-off. After the approval of the studies and proposal from the Board of Directors of Santander Brazil, on March 31, 2021, the shareholders of Santander Brazil and Getnet approved the spin-off. As a result, Getnet registered in its shareholders equity the portion of the net assets contributed from Santander Brazil spin-off, which correspond to the deferred tax asset registered in the amount of R$398,533 thousand. The operation became effective immediately upon the approval by the shareholders of both companies on March 31, 2021. Approval of G etnet s pin-off f rom Santander Brazil by BACEN On July 14, 2021, through the published statement in the Official Gazette No. 131 3 Brazilian Securities and Exchange Commission - CVM an d Securities and Exchange Commission – SEC approval the grant registration of the Getnet On August 10, 2021, Getnet obtained the grant of issuer registration dealing with CVM Instruction n°. 480 09 3 3 On October 18, 2021 the Getnet shares (GETT 11 3 4 3 New subsidiary - Getnet Sociedade de Crédito Direto S.A On February 12, 2021, Getnet received the authorization from BACEN to operate as a Direct Credit Corporation ( Sociedade de Crédito Direto 4,656 18 2021 Seeking to provide greater legal certainty to this “new Brazilian credit market", the applicable regulation requires SCDs to select their clients based on consistent, verifiable and transparent criteria, including relevant aspects of credit risk assessment. The SCDs are authorized to provide ancillary credit services, limited to an exhaustive list set forth in the regulation, encompassing: (i) credit analysis for third parties; (ii) collection of debts owed by third parties; (iii) acting as insurance representative in distribution of insurance related to credit transactions; and (iv) issuance of electronic currency. Notwithstanding, SCDs are prohibited from having equity interest in financial institutions, and restricted from raising funds from the public, except for the issuance of its own shares. Transaction with Eyemobile Tecnologia Ltda. On August 3, 2021 after the satisfaction of the applicable preceding conditions, the Company closed the transaction relating to Getnet's acquisition of interest in Eyemobile Tecnologia Ltda. ("Eyemobile"), with the subsequent corporate conversion of Eyemobile's and an increase in Eyemobile's capital, fully subscribed by Getnet (respectively “Transaction” and "Closing"). Eyemobile is a technology company that operates through the offer of software solutions focused on the payment market, points of sale (“POS”), cash front and events. After the closing, Getnet holds a 60% interest, acquired through a total of R$21.5 million paid in cash for the acquisition of: (i) equity interest of 44% (R$ 11.5 million) and capital increase (R$ 10.0 million) resulting in an increase in the level of ownership interest of 16%. In addition, Getnet may disburse an additional maximum amount of R$ 3.5 million conditioned to certain financial and operational achievements up to 18 months after the closing. Approval of the f inancial statements The consolidated financial statements were authorized for issue by the board of directors on March 09, 202 2 |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2021 | |
Basis of preparation | |
Basis of preparation | 2. Basis of preparation The consolidated financial statements have been prepared taking into consideration the historical cost model as the base value, except in the case of certain financial assets and liabilities that are measured at fair value. The preparation of consolidated financial statements requires the use of certain critical accounting estimates. It also requires Getnet’s m anagement to exercise judgment in the process of applying the adopted accounting policies. Those areas involving a higher degree of judgment and complexity, as well as those where assumptions and estimates are significant to the consolidated financial statements, are disclosed in notes. The consolidated financial statements have been prepared and are presented in accordance with International Financial Reporting Standards ( “ IFRS ” ) as issued by the International Accounting Standards Board ( “ IASB ” ) . (a) Other information c.1) Adoption of new standards and interpretations The following standard changes were adopted for the first time for the year beginning January 1, 2021: • Amendments to IFRS 9, IAS 39, IFRS 7 “Financial Instruments”, IFRS 4 “Insurance Contracts” and IFRS 16 “Leases”: The changes provided for in Phase 2 of the interbank offered rates (“IBOR)” reform address issues that may affect the Financial Statements during the reform of a benchmark interest rate, including the effects of changes in contractual cash flows or hedging relationships arising from the substitution of a rate for a alternative reference rate (replacement issues). The effective date of application of this change was January 1, 2021. Therefore, the implementations above had no significant impact on these Financial Statements. Rules and interpretations that will come into effect after December 31, 2021 The IASB has disclosed some amendments to certain accounting standards that are not yet effective, and the Company and its subsidiaries have not early adopted for the preparation of these consolidated financial statements. Amendments to IFRS Consolidated Financial Statements and IAS 28 The amendments to IFRS 10 and IAS 28 deal with situations where there is a sale or contribution of assets between an investor and its associate or joint venture. Specifically, the amendments state that gains or losses resulting from the loss of control of a subsidiary that does not contain a business in a transaction with an associate or a joint venture that is accounted for using the equity method, are recognized in the parent’s profit or loss only to the extent of the unrelated investors’ interests in that associate or joint venture. Similarly, gains and losses resulting from the remeasurement of investments retained in any former subsidiary (that has become an associate or a joint venture that is accounted for using the equity method) to fair value are recognized in the former parent’s profit or loss only to the extent of the unrelated investors interests in the new associate or joint venture. The effective date of the amendments has not been set by the IASB yet; however, early adoption of the changes is allowed. Getnet is assessing the possible impacts of adopting this standard. Amendments to IAS 1 Classification of Liabilities as Current or Non-current The amendments to IAS 1 affect only the presentation of liabilities as current or non-current in the statement of financial position and not the amount or timing of recognition of any asset, liability, income or expenses, or the information disclosed about those items. The amendments are effective retrospectively for annual periods beginning on or after January 1, 2023, with early adoption permitted. Getnet is assessing the possible impacts of adopting this standard. Amendments to IFRS 3 Business Combinations - Reference to the Conceptual Framework The amendments update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Framework. They also add to IFRS 3 requirement that, for obligations within the scope of IAS 37, an acquirer applies IAS 37 to determine whether at the acquisition date a present obligation exists as a result of past events. For a levy that would be within the scope of IFRIC 21 Levies , the acquirer applies IFRIC 21 to determine whether the obligating event that gives rise to a liability to pay the levy has occurred by the acquisition date. Finally, the amendments add an explicit statement that an acquirer does not recognize contingent assets acquired in a business combination. The amendments are effective for business combinations for which the date of acquisition is on or after the beginning of the first annual period beginning on or after January 1, 2022. Early application is permitted if an entity also applies all other updated references (published together with the updated Conceptual Framework) at the same time or earlier. Getnet is assessing the possible impacts of adopting this standard. Amendments to IAS 16 Property, Plant and Equipment—Proceeds before Intended Use The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced before that asset is available for use, i.e. proceeds while bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Consequently, an entity recognizes such sales proceeds and related costs in profit or loss. The entity measures the cost of those items in accordance with IAS 2 Inventories . The amendments also clarify the meaning of ‘testing whether an asset is functioning properly’. <0} <0} If not presented separately in the comprehensive income statement, the financial statements should disclose the amounts of the resources and costs included in the income corresponding to the items produced that are not a product of the entity's ordinary activities, and whose item in the comprehensive income statement includes these resources and costs. The amendments are applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest annual period presented in the financial statements in which the entity first applies the amendments. The entity shall recognize the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of that earliest annual period presented. The amendments are effective for annual periods beginning on or after January 1, 2022, with early application permitted. Getnet is assessing the possible impacts of adopting this standard. Amendments to IAS 37 Onerous contracts—cost of fulfilling a contract The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract consist of both the incremental costs of fulfilling that contract (examples would be direct labor or materials) and an allocation of other costs that relate directly to fulfilling contracts (an example would be the allocation of the depreciation charge for an item of property, plant and equipment used in fulfilling the contract). The amendments apply to contracts for which the entity has not yet fulfilled all its obligations at the beginning of the annual period in which the entity first applies the amendments. Comparatives are not restated. Instead, the entity shall recognize the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings or other component of equity, as appropriate, at the date of initial application. The amendments are effective for annual periods beginning on or after January 1, 2022, with early application permitted. Getnet is assessing the possible impacts of adopting this standard. IFRS 17 Insurance Contracts In May 2017, the IASB issued the IFRS for insurance contracts that aims to replace IFRS 4. The implementation date of IFRS 17 is January 1, 2023. This standard is intended to demonstrate greater transparency and information useful in financial statements, one of the main changes being the recognition of earnings as the measure of delivery of insurance services, in order to assess the performance of insurers over time. Getnet is evaluating the possible impacts when adopting the standard. IAS 12 Income Taxes The amendments to IAS 12 Income Taxes require companies to recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. They will typically apply to transactions such as leases of lessees and decommissioning obligations and will require the recognition of additional deferred tax assets and liabilities. The amendments to IAS 12 are effective as of January 1, 2023. IAS 8 Accounting Policies, changes in accounting estimates and errors Changes in accounting estimates and errors, which use a consistent definition of materiality for the purpose of making material judgements and deciding on the information to be included in the financial statements. The amendments to IAS 1 are effective as of January 1, 2023. Annual Improvements to IFRS Standards 2018 - 2020 - to be adopted beginning January 1, 2022 IFRS 9 Financial Instruments The amendment clarifies that in applying the ‘10 percent’ test to assess whether to derecognize a financial liability, an entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf. The amendment is applied prospectively to modifications and exchanges that occur on or after the date the entity first applies the amendment. The amendment is effective for annual periods beginning on or after January 1, 2022, with early application permitted. Getnet is assessing the possible impacts of adopting this standard. According to management’s opinion, there are no other standards or interpretations issued and not yet adopted that could have a material impact on the profit or loss for the year or the equity disclosed by the Company and its subsidiaries. 2.1. Consolidation The Company consolidates all entities over which it has the capacity to exercise control, i.e., when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to direct the investee’s relevant operations. The subsidiar ies included in consolidation are the follow ing : Subsidiary Type Equity interest % Auttar H.U.T. Processamento de Dados Ltda. (“Auttar”) Subsidiary 100% Getnet Sociedade de Crédito Direto S.A (“SCD”) Subsidiary 100% Eyemobile Tecnologia S.A. (“ Eyemobile ”) ( 1 Subsidiary 60% ( 1 On May 12, 2021, Getnet Adquirência e Serviços para Meios de Pagamentos S.A. entered into an investment and other agreements with Eyemobile, as consenting intervening party, establishing the terms of the negotiation for the purchase and sale of the shares representing Eyemobile's capital stock. The control acquisition was concluded on August 3, 2021, so that Getnet now holds 60% of Eyemobile's voting shares for the amount of R$19,415, corresponding to the equity value of the shares on the purchase date, plus the amount of the contribution of the shares paid up upon subscription. The Company's corporate purpose is to explore the development and licensing of customizable computer programs, the rental of office machines and equipment, and the specialized retail trade of computer equipment and supplies . A ccounting policy The accounting policies below are applied in the preparation of the consolidated financial statements : Subsidiaries Subsidiaries are all entities over which Getnet holds control. Subsidiaries are consolidated from the date on which control is transferred to Getnet. Consolidation is discontinued when control no longer exists. Identifiable assets acquired and liabilities and contingent liabilities assumed in the acquisition of a subsidiary are initially measured at their fair values at the acquisition date. All intragroup transactions, balances and unrealized gains are eliminated on consolidation. Unrealized losses are also eliminated, unless the transaction provides evidence of impairment of the transferred asset. The subsidiaries’ accounting policies are amended according to Getnet’s accounting policies, as applicable. 2.2 Items included in the financial statements of each investee controlled by Getnet are measured using the currency of the main economic environment in which it operates (“functional currency”). The consolidated financial statements are presented in Brazilian reais (R$), which is Getnet’s functional and presentation currency. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting | |
Segment Reporting | 3. Segment Reporting A business segment is an identifiable component of the entity that is intended to provide an individual product or service or a group of related products or services, and which is subject to risks and benefits that are distinguishable from other business segments. Operating segment reporting is presented in a manner consistent with the internal reporting provided to the chief operating decision maker, in the case of Getnet, the Chief Executive Officer (“CEO”), in which he reviews items of the Consolidated S tatement of I ncome and other comprehensive income. The CEO takes into consideration the entire Company as a single operating and reportable segment by monitoring operations, making decisions about resource allocation, financial and strategic planning, and performance evaluation based on a single operating segment. The CEO formally reviews financial data material for the Company and its subsidiaries. The Company's revenue, profit or loss, and assets for this reportable segment can be determined by reference to the Consolidated S tatement of I ncome , the Consolidated S tatement of C omprehensive I ncome, and the Consolidated B alance S heet. |
Risk Management
Risk Management | 12 Months Ended |
Dec. 31, 2021 | |
Risk Management | |
Risk Management | 4. Risk Management Getnet’s shareholders and m anagement consider risk management an essential tool for strategic decision making, including for maximizing efficiency in the use of capital in Getnet‘s operations. Getnet e stablished its policies, systems and internal control to ensure a continual mitigation of possible risks and/or the realization of losses arising from exposure to credit, liquidity, market, and operational risks. a) Credit risk: accounts receivable , leading to a financial loss for the Company. The Company is exposed to credit risk from its operating activities, mainly related to accounts receivable and also cash and cash equivalents and derivative financial instruments. c . In merchant acquisition transactions, the card issuers card issuers . For the management of loss risks arising from accounts receivable, applies a simplified approach in calculating expected credit losses (“ECLs”), therefore, the Company instead recognizes a loss allowance based on lifetime b ) Liquidity risk: Getnet The frequent monitoring aims at mitigating possible maturity mismatches by allowing corrective actions, if necessary. Getnet’s The c ash flow forecasting is performed by the treasury department which monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times in order to . The liquidity risk management is performed to : (i) measuring liquidity risk, the C ompany control the c ash flow forecasting to ensure that s ; (ii) daily monitor ing needs , segregated into liquidity buffer and free movement cash, ensuring that they are consistent with the policies and minimum amounts decided by the m anagement ; (i ii ) limits and liquidity risk alerts, monitored monthly by the m anagement and by the controller where the available amounts and the projection of possible gap s over a i v) contingency plan test is conducted every c) Interest rate risk: ons . Getnet In addition to the financial risk generated by a possible decrease in the spreads due to a possible increase in borrowing costs. The Company manages the interest rate risk by maintaining a diversification of borrowing at fixed and variable rates. d) Exchange rate risk : Corresponds to the possibility of loss of value due to exchange rate fluctuations different from . The exposure to foreign exchange rate risk by substantially from receivables from international card issuers, cash and cash and equivalents in foreign exchange Getnet s settled in U . S . D ollars, mainly from ing equipment which are indexed to U.S. D ollars is . S . D ollars. Due to the low volume of transactions subject to exchange rate fluctuation. At December 31 , 2021 2020, . e) Capit al management : The current Liquidity and Market Risk Management Policy, BACEN Resolution N º 4 , 557 issued on February 23, 2017, which provides for Risk Management and Capital Management Structure, making efficient use of capital as an indispensable component of the business decision-making process, and its management is a factor of competitive differentiation. With integrated risk management, this practice supports the C ompany's projected growth, besides increasing its profitability, and has the following drivers (i) efficient use of capital, through allocation in businesses considering risk versus return; (ii) optimization of capital allocated in business and products of greater profitability; (iii) integrated risk management ensuring the position of soundness in the market, by adopting the best management practices and risk mitigation. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments | |
Financial Instruments | 5. Financial Instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity . The Company’s classifies financial instruments into the following categories : December 31, 2021 December 31, 2020 Amortized cost Fair value through other comprehensive income Total Amortized cost Fair value through other comprehensive income Total Financial assets Current Cash and cash equivalents 670,441 - 670,441 265,096 - 265,096 Financial investments 875,240 555,413 1,430,653 393,783 531,600 925,383 Accounts receivable 54,578,684 - 54,578,684 39,968,233 - 39,968,233 Other assets 200,491 - 200,491 205,718 - 205,718 Total financial assets 56,324,856 555,413 56,880,269 40,832,830 531,600 41,364,430 Financial liabilities Current/Non-current Accounts payable 51,610,405 - 51,610,405 38,767,156 - 38,767,156 Loans and borrowings 3,489,858 - 3,489,858 1,091,157 - 1,091,157 Lease liabilities 26,315 - 26,315 23,049 - 23,049 Other liabilities 236,990 - 236,990 307,205 - 307,205 Total financial liabilities 55,363,568 - 55,363,568 40,188,567 - 40,188,567 5.1 Financial assets (a) Cash and cash equivalents 12/31/2021 12/31/2020 Cash 229 41 Short-term bank deposits 646,304 255,407 Foreign currency cash and investments abroad (1) 23,908 9,648 Total 670,441 265,096 (1) Refers to highly liquid financial investments in U.S. Dollars. (b) Financial investments 12/31/2021 12/31/2020 Brazilian treasury bonds (1) 555,413 531,600 Short-term investment (2) 875,240 393,783 Total 1,430,653 925,383 (1 ) Consists of investments in Brazilian Treasury Bonds ("LFTs") with an interest rate of 99.04 % of the Basic Interest Rate (SELIC – 9.25 % and 2.0 % for the year ended December 31, 202 1 and December 2020, respectively ) , invested to comply with certain requirements for authorized payment institutions as set forth by the BACEN regulation. This financial asset was classified at fair value through other comprehensive income. (2) Refer to the amounts invested in the SBAC Investment Fund, remunerated at DI rate ( the Brazilian interbank deposit rate), where Getnet holds participation units. The underlying assets of the fund comprises substantially in public securities and repo with high liq uidity (Level 1 – Further details note 5.3). ( c) Accounts receivable 12/31/2021 12/31/2020 Accounts receivable from card issuers 54,131,057 39,610,114 Other accounts receivable from clients 509,359 416,443 Provision for expected credit losses (61,732 ) (58,324 ) Total 54,578,684 39,968,233 Movements in the provision for expected credit losses 12/31/2021 12/31/2020 12/31/2019 Opening balance 58,324 66,564 75,109 Additions 67,351 69,789 83,293 Reversals (63,943 ) (78,029 ) (91,838) Closing balance 61,732 58,324 66,564 Accounting policy Financial assets are classified into the following categories: (i) amortized cost; (ii) fair value through other comprehensive income; and (iii) fair value through profit or loss. T he basis for classification depends on the Company’s business financial assets management model and the contractual cash flow characteristics of the financial asset . The classifications of the financial assets are detailed below: Amortized cost Held within the business model in order to collect to collect contractual cash flows; these cash flows represent solely payments of principal and interest and are, therefore, initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method, less provisions for reduction to recoverable amount. Interest income from these financial assets is recognized in finance income. Any gains or losses due to the write-off of the asset are recognized directly in the profit or loss, together with foreign exchange gains and losses. Impairment losses are presented separately in the Consolidated S tatement of I ncome . Fair value through other comprehensive income (FVOCI) A financial asset is measured at fair value through comprehensive income if it meets the concept of principal and interest only payments and is held within the business model whose objective is to both , collecting contractual cash flows and selling the financial assets. Changes in carrying amount are recognized in other comprehensive income, except for the recognition of impairment gains or losses, interest income, and foreign exchange gains and losses, which are recognized in the profit or loss. When the financial asset is derecognized, the cumulative gains or losses that had been previously recognized in other comprehensive income are reclassified from equity to profit or loss. Interest income from these financial assets is recognized in finance income using the effective interest method. Fair value through profit or loss (FVPL) Assets are measured at fair value through profit or loss when they do not meet the criteria to be classified at amortized cost or at fair value through other comprehensive income or when on initial recognition was designated to eliminate or reduce an accounting mismatch. Any exchange gains or losses are recognized in the Consolidate Statement of Income . Derecognition of financial assets The Company derecognizes financial assets when the contractual rights to the cash flows from investing activities expire or when it transfers the investments and substantially all the risks and rewards of ownership to another entity. Expected credit losses Getnet assesses, on a prospective basis at each reporting date, the expected credit losses on financial assets carried at amortized cost and at fair value through other comprehensive income. The impairment assessment methodology applied depends on whether there is a significant increase in credit risk and the loss is estimated as the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. Expected cash flows will include cash flows from the sale of collaterals held or other credit enhancements that are integral to the contractual terms. The Company recognizes an allowance for ECLs for all financial assets not measured at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that Getnet expects to receive, discounted at an approximation of the original effective interest rate. Getnet applies a simplified approach in calculating ECLs, therefore, Getnet instead recognizes a loss allowance based on lifetime ECLs, provision matrix and days past due at each reporting date. For accounts receivable, Getnet applies the simplified approach as permitted by IFRS 9 by recognizing lifetime expected credit losses from the initial recognition of the receivables. Estimates and critical accounting judgments Financial assets measured at amortized cost and fair value through other comprehensive income are tested for impairment at the end of each annual reporting period . The carrying amounts of these assets are adjusted by the loss allowance as a contra entry to the Consolidated Statement of Income . The reversal of previously recognized losses is recognized in the Consolidated Statement of Income in the year in which the impairment decreases and can be objectively related to a recovery event. The amount recorded in the Consolidated Statement of Income in the line item ‘ Other expenses, net ’ is disclosed in table ‘ Movements in the provision for expected credit losses ’ in the note 5.1 5.2 Financial liabilities a) Accounts payable 12/31/2021 12/31/2020 Payment transactions (1) 50,980,629 38,241,934 Other financial liabilities (2) 629,776 525,222 Total 51,610,405 38,767,156 (1 Refers mainly to payment transactions with Santander Brazil (related party) in the amount of R$ 18,858,043 on December 31, 2021 and R$ 17,474,617 on December 31, 2020 (further details note 11) and commercial establishments. (2) Amounts to be paid as an interchange fee and amounts that are under analysis for approval of settlement. b) Loans and borrowings 12/31/2021 12/31/2020 Financial liabilities at amortized cost (1) 3,489,858 1,091,157 Total 3,489,858 1,091,157 (1) The increase in loan obligations for the year was due to the raising of working capital to support the Company's operational activities, which had the strategy of expanding the offer of receivables anticipation products. The types of operations and rates used are listed below: Rate Maturity 12/31/2021 12/31/2020 Working capital financing (1) 110.63 (2) 02/22 2,993,507 1,051,358 Working capital financing 9.16 (2) 01/22 457,416 - BNDES/ FINAME 3.75 - - 2,957 Other financing 11.11% - 11.15% p.y. 05/24 - 02/25 38,935 36,842 Total 3,489,858 1,091,157 (1) Related to Santander Brazil transaction. See note 1 1 for further details. (2) CDI rate means the Brazilian interbank deposit ( Certificado de Depósito Interbancário ) rate, which is an average of interbank overnight rates in Brazil . Refer to note 1 9 for further details . Movements in loans and borrowings in the year Balance at December 31, 2018 96,570 Additions 599,160 Principal payments (50,054 ) Accrued interest 12,140 Interest paid (5,271 ) Balance at December 31, 2019 652,545 Additions 2,842,742 Principal payments (2,399,622 ) Accrued interest 28,552 Interest paid (33,060 ) Balance at December 31, 2020 1,091,157 Additions 6,511,673 Principal payments (4,164,474 ) Accrued interest 110,715 Interest paid (59,213 ) Balance at December 31, 2021 3,489,858 Debt breakdown ( by maturity) December 31, 2021 December 31, 2020 Up to 3 months 3-12 months Over 12 months Total Up to 3 months 3-12 months Over 12 months Total Loans and borrowings from domestic financial institutions 3,454,903 9,813 25,142 3,489,858 1,058,034 5,313 27,810 1,091,157 Accounting policy On initial recognition, financial liabilities are classified as (i) financial liabilities at fair value through profit or loss; or (ii) financial liabilities at amortized cost, as appropriate . Amortized cost Initially measured at fair value, net of transaction costs, and subsequently measured at amortized cost using the effective interest method, with interest expense recognized on a in profit or loss . Gains and losses from these financial liabilities are recognized in the Consolidated S tatement of I ncome . 5 . 3 Fair value estimation The table below presents a comparison by class between book value and fair value of the financial instruments : December 31, 2021 Book value Fair value Level 1 Level 2 Total Level 1 Level 2 Total Financial assets Cash and cash equivalents 670,441 - 670,441 670,441 - 670,441 Financial investments 1,430,653 - 1,430,653 1,430,653 - 1,430,653 Accounts receivable - 54,578,684 54,578,684 - 54,578,684 54,578,684 Other assets - 200,491 200,491 - 200,491 200,491 Total financial assets 2,101,094 54,779,175 56,880,269 2,101,094 54,779,175 56,880,269 Financial liabilities Accounts payable - 51,610,405 51,610,405 - 51,610,405 51,610,405 Loans and borrowings - 3,489,858 3,489,858 - 3,489,858 3,489,858 Lease liabilities - 26,315 26,315 - 26,315 26,315 Other liabilities - 236,990 236,990 - 236,990 236,990 Total financial liabilities - 55,363,568 55,363,568 - 55,363,568 55,363,568 December 31, 2020 Book value Fair value Level 1 Level 2 Total Level 1 Level 2 Total Financial assets Cash and cash equivalents 265,096 - 265,096 265,096 - 265,096 Financial investments 925,383 - 925,383 925,383 - 925,383 Accounts receivable - 39,968,233 39,968,233 - 39,968,233 39,968,233 Other assets - 205,718 205,718 - 205,718 205,718 Total financial assets 1,190,479 40,173,951 41,364,430 1,190,479 40,173,951 41,364,430 Financial liabilities Accounts payable - 38,767,156 38,767,156 - 38,767,156 38,767,156 Loans and borrowings - 1,091,157 1,091,157 - 1,091,157 1,091,157 Lease liabilities - 23,049 23,049 - 23,049 23,049 Other liabilities - 307,205 307,205 - 307,205 307,205 Total financial liabilities - 40,188,567 40,188,567 - 40,188,567 40,188,567 (1) The carrying values of O ther assets are measured at amortized cost, less the provision for impairment and adjustment to present value, when applicable. These amounts refer mainly to judicial deposit, protection deposit of BACEN . (2) The carrying values of O ther liabilities are measured at amortized cost . These amounts refer mainly to payables to suppliers . The fair value of the financial assets and the liabilities are substantially similar to their book value. Accounting policy Fair value is the price that would be received to sell an asset or paid to transfer a liability in the major or most advantageous market, in an orderly transaction between market participants at the measurement date. A three-level hierarchy is used to measure and disclose fair value, as shown below: Level 1 —Prices quoted (unadjusted) in active markets for identical assets or liabilities. For investments in investment funds, the price of the fund unit share is an appropriate indicator of fair value and falls into this fair value hierarchy category. For the financial investments, fair value is determined based on the interbank deposit interest rate (DI), released to the market through official agencies (Cetip, BACEN, etc.), and from the fund unit value published by CVM, respectively . Level 2 — Inputs, other than quoted prices included in Level 1, that are observable in the market for assets or liabilities, either directly (such as prices) or indirectly (derived from prices). This category includes (i) accounts receivable; (ii) loans and borrowings ; and (i ii ) other assets and other liabilities . For loans and borrowings , fair value was determined using the expected payment of principal and interest until maturity at the contractual rates. Level 3 —Inputs on assets or liabilities that are not based on observable data adopted by the market (i.e., unobservable inputs). The valuation technique for the fair values of the other financial instruments classified as Level 3 is the discounted cash flow method. Getnet does not have assets or liabilities measured at Level 3 fair value. Estimates and critical accounting judgments Financial assets and liabilities are subsequently measured at the end of each annual period using valuation techniques. This calculation is based on assumptions that take into consideration the Company’s judgment based on information and market conditions existing at the end of the reporting period . Getnet classifies the fair value measurement using a hierarchy that reflects the model used in the measurement process, segregating the financial instruments into levels 1, 2 or 3. 5 . 4 Sensitivity analysis The following analysis estimates the potential value of the financial instruments in hypothetical stress scenarios of the main market risk factors (fixed interest rate and foreign currency risk: exposure subject to exchange fluctuations) that impact each position . This analysis was performed according to topics presented in footnote 4 d). Sensitivity analysis of changes in foreign exchange rates December 31, 2021 December 31, 2020 Assets Cash and cash equivalents 23,951 9,688 Accounts receivable 22,181 20,707 Other assets 139 - Liabilities Accounts payable - - Net exposure 46,271 30,395 December 31, 2021 Probable scenario Possible scenario Remote scenario +/-10% +/-25% +/-50% Net effect on profit or loss 4,627 11,568 23,136 December 31, 2020 Probable scenario Possible scenario Remote scenario +/-10% +/-25% +/-50% Net effect on profit or loss 3,039 7,599 15,197 Translation rates in the year ended: USD:BRL 12/31/2021 5.5805 12/31/2020 5.1967 Analysis rates in the years ending in: SELIC 12/31/2021 9.15% p.y. 12/31/2020 1.90 % p.y. Sensitivity analysis of changes in interest rates December 31, 2021 December 31, 2020 Assets Financial investments 1,430,566 925,383 Accounts receivable and other assets 182,245 72,575 Liabilities Loans and borrowings (3,450,483 ) (1,051,358 ) Net exposure (1,837,672 ) (53,400 ) December 31, 2021 Probable scenario Possible scenario Remote scenario +/-10% +/-25% +/-50% Net effect on profit or loss (16,815 ) (42,037 ) (84,073 ) December 31, 2020 Probable scenario Possible scenario Remote scenario +/-10% +/-25% +/-50% Net effect on profit or loss (101 ) (254 ) (507 ) Probable Scenario: taking into account a 10% deterioration in the associated risk variables . Possible Scenario: taking into account a 25% deterioration in the associated risk variables. Remote Scenario: taking into account a 50% deterioration in the associated risk variables. Accounting policy Sensitivity analysis to foreign currency The sensitivity analysis includes outstanding monetary items and foreign currency-denominated transaction (U . S . D ollar s ), such as l oans and borrowings , and adjusts their translation at the end of each year by the exchange rates, taking into account the changes shown above . Sensitivity analysis to changes in interest rates The yield on short-term investments and the interest from loans are mainly affected by changes in the interbank deposit interest rate (DI) and SELIC. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 6 Leases (a) Balances recognized in the balance sheet The balance sheet discloses the following lease-related balances: Right-of-use-asset December 31, 2018 21,172 Additions and contractual changes 12,659 Depreciation (3,829 ) December 31, 2019 30,002 Additions and contractual changes (2,731 ) Depreciation (5,366 ) December 31, 2020 21,905 December 31, 2020 21,905 Additions and contractual changes 7,205 Depreciation (3,407 ) December 31, 2021 25,703 Lease liabilities December 31, 2018 22,842 Additions and contractual changes 15,121 Payments (8,199 ) Interest 865 December 31, 2019 30,629 Additions and contractual changes (2,801 ) Payments (6,693 ) Interest 1,914 December 31, 2020 23,049 December 31, 2020 23,049 Additions and contractual changes 5,364 Payments (4,155 ) Interest 2,057 December 31, 2021 26,315 (b) Expenses recognized in the consolidated statement of income December 31, 2019 Depreciation 3,829 Interest expense 865 Total 4,694 December 31, 2020 Depreciation 5,366 Interest expense 1,914 Total 7,280 December 31, 2021 Depreciation 3,407 Interest expense 2,057 Total 5,464 Payments of short-term leases In December 31 , 2021 and December 31 , 2020 there were no short-term contract expenses (R$294 at December 31, 2019, recognized under ‘General and Administrative Expenses’). Accounting policy Getnet leases several floors of office buildings for its administrative department s . Leases are recognized as a right-of-use asset and a corresponding lease liability on the date the leased asset becomes available for use by Getnet. Each lease payment is allocated between principal and finance costs. Finance costs are recognized in the Consolidated S tatement of I ncome over the lease term. The right-of-use asset is depreciated over the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured at present value. Lease liabilities include the net present value of the following lease payments: Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable. Variable lease payments that depend on an index or rate. Amounts expected to be payable by the Getnet, under the residual value guarantees. The exercise price of purchase options, if Getnet is reasonably certain to exercise the options. Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease. Lease payments are discounted using Getnet’s incremental borrowing rate, which is the rate Getnet would have to pay on a loan to obtain the funds necessary to acquire an asset of similar value, in a similar economic environment, under equivalent terms and conditions. Right-of-use assets are measured at cost, according to the following items: The initial measurement amount of the lease liability. Any lease payments made on or before the commencement date, less any lease incentives received. Any initial direct costs. Restoration costs. Getnet’s property leases include extension options. These terms are used to maximize operational flexibility in terms of contract management. Payments associated with short-term property leases are recognized on the straight-line basis as an expense in profit or loss. Short-term leases are leases with term of 12 months or less. Estimates and critical accounting judgments Incremental rate on the lessee’s borrowing There is no identifiable implicit discount rate to be applied to Getnet’s lease contracts; therefore, Getnet’s incremental borrowing rate is used to calculate the present value of lease liabilities at initial contract recognition. Getnet’s incremental borrowing rate is the interest rate Getnet would have to pay to borrow the funds necessary to obtain to acquire an asset similar to the leased asset, for a similar term, and with similar collateral, i.e., funds necessary to obtain to obtain an asset with similar value of the right-of-use asset, in a similar economic environment. Obtaining this rate involves a high degree of judgment and the credit risk of Getnet, the term of the lease, the nature and quality of the collateral offered, and the economic environment in which the transaction is conducted must be taken into consideration. The rate-setting process preferably uses readily observable inputs, based on which the lessee must make the necessary adjustments to arrive at its incremental borrowing rate. IFRS 16 allows the incremental rate to be determined for a group of contracts, since this option is associated with the validation that the grouped contracts have similar features. Getnet has made use the aforementioned practical expedient of determining groupings for its leases within the same scoped, as it believes that the effects of its application do not differ materially from the application to individual leases. Getnet’s criteria regarding the incremental interest rate were: Risk-free rate: benchmark rate of the market where the Company operates. Credit spread: the spread of the most recent borrowings and the same currency was used. Determining the lease term To determine the lease term, m anagement takes into account all facts and circumstances that create an economic incentive to exercise an extension option or not to exercise a termination option. Extension options (or periods after termination options) are included in the lease term only when there is reasonable certainty that the lease will be extended (or will not be terminated) . |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets | |
Intangible Assets | 7 Intangible Assets 12/31/2021 12/31/2020 Goodwill Getnet Tecnologia 669,831 669,831 Goodwill Eyemobile 18,659 - Other intangible assets 196,593 163,976 Total 885,083 833,807 a) Goodwill Getnet Tecnologia Eyemobile – As described in note 2, he amount paid for the acquisition of 60% of Eyemobile was R$ 19,415. In addition to this amount, an amount of R$ 5,500 was recorded as contingent consideration, a total consideration of R$ 24,915 as defined in IFRS 3. The acquired book value of net assets acquired from Eyemobile on the acquisition date was R$ 6,256, which generated a goodwill of R$ 18,659, as shown below Goodwill Eyemobile Acquisition value paid in cash 9,415 Paid-in capital at the time of subscription 10,000 Contingent consideration 5,500 Total acquisition value (a) 24,915 Total net book value 10,426 Interest 60 % Net book value of the assets acquired and liabilities assumed (b) 6,256 Goodwill to be allocated (a - b) 18,659 Net cash outflow on acquisition of Eyemobile Consideration paid in cash ( ) Paid-in capital at the time of subscription ( ) Cash and cash equivalents acquired from Eyemobile 10,155 Net consideration presented in the statement of cash flows ( ) Amounts presented above are preliminary and are subject to change upon the conclusion of the ongoing work of the purchase price allocation. The Company expects to conclude the allocation in the first quarter of 2022 within the measurement period of twelve months . b) Other intangible assets Acquisition cost 12/31/2020 Additions Disposals/ Transfers Eyemobile (1) 12/31/2021 Software and software licenses 369,239 1,968 26,799 605 398,611 Systems in development 70,311 46,669 (9,596 ) - 107,384 Provision for impairment (1,077 ) (3,376 ) - - (4,453 ) Total 438,473 45,261 17,203 605 501,542 Accumulated amortization 12/31/2020 Additions Disposals/ Transfers Eyemobile (1) 12/31/2021 Software and license amortization (274,497 ) (30,452 ) - - (304,949 ) Total (274,497 ) (30,452 ) - - (304,949 ) Total, net 163,976 14,809 17,203 605 196,593 (1) Acquisition cost 12/31/2019 Additions Disposals/ Transfers 12/31/2020 Software and software licenses 296,805 36,459 35,975 369,239 Systems in development 48,512 56,301 (34,502 ) 70,311 Provision for impairment (2,319 ) (104 ) 1,346 (1,077 ) Total 342,998 92,656 2,819 438,473 Accumulated amortization 12/31/2019 Additions Disposals/ Transfers 12/31/2020 Software and license amortization (203,498 ) (39,221 ) (31,778 ) (274,497 ) Total (203,498 ) (39,221 ) (31,778 ) (274,497 ) Total, net 139,500 53,435 (28,959 ) 163,976 c) Software and licenses In-house developed software is represented by solutions for capturing and processing debit and credit card transactions and cellphone recharging, which are fully operational . T he useful lives of the related intangible assets are five years. The use licenses have a useful life ranging from 5 to 10 years. Software and licenses are classified as intangible assets with finite useful lives, prospectively amortized on a straight-line basis, as shown in the table below: Useful life – 2020 (in years) Software 5 Licenses 5 to 10 years Accounting policy Intangible assets represent identifiable non-monetary assets (separable from other assets), without physical substance, arising from business combinations , in-house developed software, or use licenses with finite or indefinite useful lives. Only assets whose cost can be reliably estimated and which the consolidated entities consider to be probable that they will generate future economic benefits are recognized. Intangible assets are initially recognized at purchase or production cost and are subsequently measured less any accumulated amortization and any impairment losses. Other intangible assets are considered to have indefinite useful lives when, based on a review of all relevant factors, it is concluded that there is no foreseeable limit to the period over which an asset is expected to generate cash inflows for the Company. Intangible assets with indefinite useful lives are not amortized, but rather at the end of each annual period, the entity reviews the remaining useful lives of the assets in order to determine whether they continue to be indefinite and, if this is not the case, the change should be accounted for as a change in accounting estimate. Goodwill impairment assessment is performed annually or more frequently if events or changes in circumstances indicate possible impairment. Intangible assets with finite useful lives are amortized over those useful lives using methods similar to those used to depreciate property and equipment. Amortization expenses are recognized in line item ‘Depreciation and amortization’ in the Consolidated S tatement of I ncome . At the end of each year, Getnet assess es whether there is indication that its intangible assets might be impaired, i.e., whether the carrying amount of an asset exceeds its probable realizable value. If an impairment loss is identified, the recoverable amount is written down until it reaches the asset’s realizable value. Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized when the asset's carrying amount exceeds its recoverable amount, which is the higher of an asset's fair value less costs of disposal or its value in use. Goodwill on acquisitions When an investment in a subsidiary is acquired, any difference between the investment cost and the investor’s share of the net fair value of the investee’s identifiable assets, liabilities, and contingent liabilities (subsidiary or associate) is accounted for in accordance with IFRS 3. Goodwill is recognized only when the amount of the consideration transferred for an investee exceeds its fair value at the acquisition date, and therefore represents a payment made by the acquirer in anticipation of future economic benefits from assets of the acquiree that cannot be individually identified and separately recognized. The net fair value adjustments to an investee’s identifiable assets, liabilities and contingent liabilities based on their carrying amounts are individually allocated to the identifiable assets acquired and liabilities assumed based on their respective fair values at the acquisition date. Assets that have an indefinite useful life, such as goodwill, are not subject to amortization and are tested annually to identify any impairment. Impairment reviews of goodwill are performed annually or more frequently if events or changes in circumstances indicate possible impairment. At December 31, 2021 and December 31, 2020, Getnet has not identified the need to make any adjustments for impairment. Internally generated intangible asset Expenditure on research activities is recognized as an expense for the year when incurred. The expenses with projects that are not activated are recognized in the line of Selling, General and Administrative expenses . When a n internally generated intangible asset can be recognized, development expenditure is capitalized in intangible asset in the balance sheet, and amortized in the line item ‘Cost of services’ for POS software and in the line item ‘ Selling, General and Administrative expenses ’ for other intangible assets , in the ‘ Consolidated Statement of Income ’. Systems in development Getnet capitaliz es expenses that are directly related to the internal development of software for their own operations, provided that the aspects required for recognition are met. The main expenses are related to internal labor for the development of the systems used by Getnet. Research e xpe nditure is recorded as expenses when incurred. These projects evolve through an assessment of the IT and Accounting areas in order to verify their adherence to IAS 38 and whether they should be classified as Intangible Assets or Expenses. For further details refer to note 14 – (technology and systems). The provision for impairment o f intangible assets is recognized according to the probable losses identified between the activated software and the systems in development. Getnet, through a technical team, monitors the performance of the systems taking into consideration technological and market aspects related to the continuity of the operation. Estimates and critical accounting judgments The goodwill recorded is subject to impairment testing at least once a year, or more frequently if there is any indication of impairment. The basis used for the impairment test is the value in use and , for this purpose , the cash flow for a period of 5 years is estimated . Cash flow was prepared considering several factors, such as: (i) macroeconomic projections of interest rate, inflation, Gross Domestic Product - GDP and others; (ii) market growth and behavior and estimates; (iii) increased costs, returns, synergies and investment plan; (iv) customer behavior; and (v) growth rate and adjustments applied to perpetuity flows. The discount rate used is represented by the Weighted Average Capital Cost (WACC), which represents the minimum cost that the shareholder would be willing to invest in a similar sector company. Main premises: 2021 2020 Bases for determining recoverable value Values in use: cash flows Period of cash flow projections 5 years 5 years Perpetual growth rate 3.00% 3.00% Discount rate 11.16% 8.56% The adoption of these estimates involves the probability of occurrence of future events and the change of any of these factors could have a different result. The cash flow estimate is based on an appraisal prepared internally by an independent specialized firm, annually or whenever there are indications that the asset might be impaired, which is reviewed and approved by m anagement . Getnet uses an estimated useful life to calculate and record the amortization applied to its intangible assets. The amortization of software and software licenses is defined based on the effective period of the license contracted. The amortization of internally developed software is defined based on the period over which the software will generate future economic benefits for Getnet. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property and Equipment | |
Property and Equipment | 8. Property and Equipment As at December 31 , 2021 and 2020 and December 31, 2019 and 2020 , property and equipment are broken down as follows: 12/31/2020 Additions Disposals/ Transfers Eyemobile Acquisition (1) 12/31/2021 Point of Sale (POS) terminals 1,416,636 338,201 (300,135 ) - 1,454,702 Computers and peripherals 201,358 36,766 296 46 238,466 Own properties 8,606 - - - 8,606 Furniture and fixtures 7,513 261 (264 ) 118 7,628 Land 2,766 - - - 2,766 Improvements in own properties 1,088 107 (55 ) 10 1,150 Leasehold improvements 6,203 - (36 ) - 6,167 Telecommunications equipment 1,862 - (1,145 ) 7 724 Provision for impairment (29,685 ) (6,143 ) 398 - (35,430 ) Total 1,616,347 369,192 (300,941 ) 181 1,684,779 12/31/2020 Additions Disposals/ Transfers Eyemobile Acquisition (1) 12/31/2021 Depreciation Point of Sale terminals (900,901 ) (289,270 ) 282,905 - (907,266 ) Depreciation Computers and peripherals (89,704 ) (44,041 ) 695 - (133,050 ) Depreciation of own properties (1,950 ) (345 ) - - (2,295 ) Depreciation of furniture and fixtures (2,890 ) (720 ) 223 - (3,387 ) Depreciation of improvements in own properties (565 ) (105 ) - - (670 ) Depreciation of leasehold improvements (5,715 ) (82 ) - - (5,797 ) Depreciation of telecommunications equipment (761 ) (16 ) 61 - (716 ) Total (1,002,486 ) (334,579 ) 283,884 - (1,053,181 ) Total, net 613,861 34,613 (17,057 ) 181 631,598 ( 1 12/31/2019 Additions Disposals/ (1) 12/31/2020 Point of Sale (POS) terminals 1,314,027 251,317 (148,708 ) 1,416,636 Computers and peripherals 203,590 56,249 (58,481 ) 201,358 Own properties 8,606 - - 8,606 Furniture and fixtures 7,873 2,600 (2,960 ) 7,513 Land 2,766 - - 2,766 Improvements in own properties 1,087 1 - 1,088 Leasehold improvements 6,472 - (269 ) 6,203 Telecommunications equipment 2,234 - (372 ) 1,862 Provision for impairment (37,475 ) (1,295 ) 9,085 (29,685 ) Total 1,509,180 308,872 (201,705 ) 1,616,347 12/31/2019 Additions Disposals/ (1) 12/31/2020 Depreciation Point of Sale terminals (732,906 ) (245,138 ) 77,143 (900,901 ) Depreciation Computers and peripherals (106,296 ) (30,874 ) 47,466 (89,704 ) Depreciation of own properties (1,606 ) (345 ) 1 (1,950 ) Depreciation of furniture and fixtures (4,136 ) (690 ) 1,936 (2,890 ) Depreciation of improvements in own properties (460 ) (103 ) (2 ) (565 ) Depreciation of leasehold improvements (5,512 ) (394 ) 191 (5,715 ) Depreciation of telecommunications equipment (1,027 ) (101 ) 367 (761 ) Total (851,943 ) (277,645 ) 127,102 (1,002,486 ) Total, net 657,237 31,227 (74,603 ) 613,861 (1) Include transfers from Property and Equipment to Inventory. The useful life adopted for each class of property, plant and equipment is shown below: Average useful life Annual depreciation rate Point of Sale (POS) terminals 3 years 33% Computers and peripherals 5 years 20% Own properties 25 years 4% Furniture and fixtures 10 years 10% Improvements in own properties 10 years 10% Leasehold improvements 4 years 25% Telecommunications equipment 5 years 20% Accounting policy Property and equipment items are measured are the historical purchase or construction cost, less accumulated depreciation. When applicable, impairment losses are recognized directly in profit or loss for the year . Costs include expenditure directly attributable to the purchase of an asset. The costs of internally generated assets include the costs of materials and direct labor, any other costs to bring the asset to the required location and conditions necessary to operate as expected by m anagement . The replacement cost of a property and equipment item is recognized in its carrying value when it is probable that the economic benefits associated with such item will flow to the Company and its cost can be reliably measured. The costs of day-to-day maintenance of property and equipment are recognized in the S tatement of I ncome as incurred, such as: removal of equipment from the point of sale, repair, reinstallation, freight, and other costs. An item of property and equipment is written off when sold or when no future economic benefits are expected from its use or sale. Any gain or loss arising on the write-off of an asset (determined as the difference between sales proceeds and the carrying amount of the asset) is recognized in the income statement for the year in which the asset is written off. Getnet’s main property and equipment are point-of-sale (“POS”) terminals, valued for a useful life of three years. This useful life was defined taking into consideration the maintenance performed during the use of the equipment, the lack of spare parts, the technological changes occurred and in progress, and the economic environment in which they operate, considering the planning and other idiosyncrasies of Getnet’s business and the increase in production (data capture and processing transactions by the merchants). The costs incurred internally and with third parties directly attributable to the installation of the POSs are allocated as property and equipment. Depreciation is calculated on the purchase cost of the asset, plus all costs incurred to bring the asset to the operating conditions expected by m anagement , less its residual value, if any. To calculate depreciation, the Company’s estimates the useful life of each class of tangible assets. This estimate most appropriately reflects the pattern of consumption of the future economic benefits embodied in that class of assets. Depreciation expenses are recognized in the S tatement of I ncome on a straight-line basis. Company doesn’t identify changes in the useful life of your assets comparing to last year . |
Provision for tax, civil and la
Provision for tax, civil and labor risks | 12 Months Ended |
Dec. 31, 2021 | |
Provision for tax, civil and labor risks | |
Provision for tax, civil and labor risks | 9 Provision for tax, civil and labor risks Getnet is a party to tax, civil and labor proceedings. These proceedings are in progress and are being discussed at the administrative and judicial levels. The provisions were recognized based on the nature, complexity, and outcome history for similar proceedings, as well as on the loss assessment for Getnet’s proceedings, based on the opinions of the Company’s in-house and outside legal counsel. Getnet’s policy is to fully provide for the amount at risk in proceedings assessed as probable losses. Labor lawsuits are related to claims mainly by former employees of the Company. Civil lawsuits refer to claims for damages from suppliers, damages caused to third parties and litigation in contractual matters. a) P robable losses 12/31/2021 12/31/2020 Civil 2,895 1,872 Labor 12,118 9,553 Total 15,013 11,425 Getnet is party to lawsuits discussed at the administrative level which analyzing its nature, do not qualify h as a probable loss risk. The main lawsuits that qualify as contingency with possible losses are listed below: b) P ossible losses 12/31/2021 12/31/2020 Civil 52,137 64,184 Labor 26,382 24,215 Tax 812,700 875,087 Total 891,219 963,486 Tax - Tax on s ervices The Company is party to three lawsuits related to the collection of taxes on services, of which it was cited in 2016. The tax assessments issued by the Finance Department of the City of São Paulo, refer to the alleged existence of revenues from the provision of services, correlated to technical support services, such as installation, configuration and maintenance of computer programs, and currently amount to R$ 74,735 . For all tax assessments received related to this subject, the Company believes that the likelihood of loss is possible. Tax – Income taxes and social contributions Federal Tax Office of Brazil issued infraction notices against Getnet and Santander Brazil related to income taxes and social contribution, including late payment charges, related to the tax deduction for the amortization of goodwill paid on the acquisition of Getnet Tecnologia referring to period from 2014 to 2018. In the Federal Tax Office of Brazil’s perspective, the Company would not have complied with the legal requirements for amortization. Getnet and Santander Brazil presented their respective defenses and are awaiting judgment at the administrative level. T he amount of the poten t ial loss was approximately R$ 812.7 million , not booked as a provision as of December 3 1 , 202 1 . c) Judicial deposits 12/31/2021 12/31/2020 Civil 1,389 592 Labor 17,788 15,625 Tax 1,017 1,002 Total 20,194 17,219 (1) Judicial deposits recognized in the balance sheet line "Other assets". d) Provision movement 12/31/2021 12/31/2020 Civil Labor Civil Labor Opening balance 1,872 9,553 1,547 5,954 Additions 5,455 4,070 1,296 4,791 Reversals/payments (4,431 ) (1,506 ) (971 ) (1,192 ) Closing balance 2,896 12,117 1,872 9,553 Accounting policy Provisions for risks (labor, civil, and tax) are recognized when: (a) there is a present obligation as a result of a past event; (b) it is probable that an outflow of funds will be required to settle the obligation; and (c) the amount has been reliably estimated. In case of a series of similar obligations, the likelihood that an outflow will be required to settle them is determined taking into consideration the class of obligations as a whole. A provision for tax, civil and labor risks is recognized in the consolidated financial statements when the risk of loss in an administrative or judicial proceeding is considered probable, with a probable disbursement of funds to settle the obligations, and whenever the amounts involved can be reliably measured. The definition of the probab ility of loss is an estimate based on the opinion of legal advisors and management , the nature of the proceedings, similarity with previous cases, and the complexity of the courts. Contingent assets are not recognized in consolidated financial statements since the y refer to results that might never be realized. However, when the realization of the gain is virtually certain, then the related asset is no longer a contingent asset and its recognition becomes appropriate. Contingent assets with a probable favorable outcome are only disclosed in the notes to the consolidated financial statements. At December 31 , 202 1 and December 31, 2020 , Getnet had no contingent assets. Contingent liabilities assessed as possible losses are not recognized in consolidated financial statements and are instead only disclosed in explanatory notes. Contingent liabilities assessed as remote losses are neither recognized nor disclosed. Estimates and critical accounting judgments The risk of loss classification is an estimate that requires material judgment in accounting for and disclosing provisions for judicial and administrative proceedings, as well as the estimate of amounts, the complexity of the proceedings, and the history of the lawsuits and similar proceedings. |
Income Tax and social contribut
Income Tax and social contribution and Other Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax and social contribution and Other Taxes | |
Income Tax and social contribution and Other Taxes | 10. Income Tax and social contribution and Other Taxes 1 0 . 1 Reconciliation of the income tax and social contribution expense: 12/31/2021 12/31/2020 12/31/2019 Net income before taxes 563,008 496,187 1,099,861 Statutory rate 34% 34% 34% Expected income tax and social contribution, calculated with statutory rate (191,423 ) (168,704 ) (373,953 ) Permanent additions Non-deductible expenses (483 ) (604 ) (1,559 ) Non-deductible management’ benefits (3,476 ) (2,256 ) (2,591 ) Others - (3,010 ) - Permanent exclusions Donations - 3,691 11,296 Tax incentive - Hunger Prevention Program 952 1,264 1,293 Goodwill amortization - 23,532 70,673 Dividends (interest on capital) 101,320 - - Other - - 15,660 Additions (reversal) of income taxes and social contribution temporary differences Additions (reversal) of income taxes and social contribution temporary differences 6,026 10,913 (26,648 ) Income tax in profit or loss for the year (87,084 ) (135,174 ) (305,829 ) Effective tax rate 15% 27% 28% Current (36,551 ) (127,984 ) (330,012 ) Deferred (50,533 ) (7,190 ) 24,183 Under Brazilian tax law, temporary differences and tax losses can be carried forward indefinitely, however the loss carryforward can only be used to offset up to 30 % of taxable profit for the year . 1 0 . 2 Deferred income tax asset s and liabilities Breakdown of deferred tax assets 12/31/2021 12/31/2020 Provision for tax, civil and labor risks 5,105 3,884 Provision for investments losses - 80 Provision for personal bonuses 21,849 23,144 Provision for other expenses (1) 46,029 37,249 IFRS 16 adjustments 7,969 6,112 Provisions for expected credit losses 2,329 3,390 Tax credit - spin-off (2) 338,753 - Total 422,034 73,859 (1) Refers substantially to accruals related to accounts payable and transfers costs to debit and credit cards brands. (2) Refers tax credit related the spin-off. See note 1 “The spin-off of Getnet from Banco Santander (Brasil) S.A.” for further details. Estimate of tax credit realization 12/31/2021 Consolidated 2022 152,173 2023 90,266 2024 79,962 2025 79,707 2026 to 2030 19,926 Total 422,034 Breakdown of deferred tax liabilities 12/31/2021 12/31/2020 Other temporary differences 3,345 7,876 Total 3,345 7,876 1 0 . 3 Income tax es payables and other tax payables 12/31/2021 12/31/2020 Taxes on revenue (PIS and COFINS) 17,547 9,552 Income taxes 6,534 22,276 Withholding income tax (IRRF) 1,724 3,022 Tax on services (ISS) 4,902 6,560 Other taxes 269 310 Total 30,976 41,720 Accounting policy The provisions for current taxes are recognized at a 15% rate plus 10% surtax for income tax and a 9% rate for social contribution on profit adjusted according to the prevailing tax law . Deferred income tax and social contribution are entirely recognized on temporary differences between assets and liabilities recognized for tax purposes and the carrying amounts of assets and liabilities in the consolidated financial statements. Deferred income tax and social contribution are determined based on the tax rates and tax law in effect at the date the consolidated financial statements are prepared and applicable when the related income tax and social contribution are realized. The recovery of the balance of deferred tax assets is reviewed on a quarterly basis and, when it is no longer probable that future taxable income will be available to allow the recovery of all or part of the assets, these are adjusted for the expected recoverable amount . Current and deferred taxes are recognized in profit or loss unless they are related to items recognized directly in equity . Taxes on revenue is related to PIS and COFINS that are contributions levied by the Brazilian Federal government on gross revenues. These amounts are invoiced to and collected from the Company’s customers and recognized as deductions to gross revenue (Note 13 a) ) against tax liabilities, as we are acting as tax withholding agents on behalf of the tax authorities. PIS and COFINS paid on certain purchases may be claimed back as tax credits to offset PIS and COFINS payable. These amounts are recognized as Recoverable taxe s and are offset on a monthly basis against Taxes payable (Note 1 0.3 ) and presented net, as the amounts are due to the same tax authority. Taxes on services is related to ISS is a tax levied by municipalities on revenues from the provision of services. ISS tax is added to amounts invoiced to the Company ’s customers for the services the Company renders. These are recognized as deductions to gross revenue (Note 1 3 a) ) against tax liabilities, as the Group acts as agent collecting these taxes on behalf of municipal governments. Estimates and critical accounting judgments The amounts of provisions for deferred taxes arise from temporary differences caused mainly by temporarily non-deductible provisions and are classified in current and non-current assets and current and non-current liabilities, as applicable. Deferred taxes are recognized to reflect the future tax effects attributable to temporary differences between the tax base of assets and liabilities and their corresponding carrying amounts . |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Related Parties | |
Related Parties | 11 Related Parties The main balances with the related part y are shown below : Assets (liabilities) December 31, 2021 Assets (liabilities) December 31, 2020 Assets. 8,463,312 6,220,626 Cash and cash equivalents 372,151 242,391 Financial investments 839,427 384,027 Accounts receivable 171,779 17,573 On lending of accounts receivable 7,079,955 5,576,635 Liabilities (22,308,966 ) (18,495,855 ) Accounts payable (18,858,043 ) (17,474,617 ) other payables - 30,120 Loans and borrowings (3,450,923 ) (1,051,358 ) Total (13,845,654 ) (12,275,229 ) Revenue (expenses) December 31, 2021 Revenue (expenses) December 31, 2020 Finance income, net 32,693 18,434 Revenue from services (1) 1,038,017 623,500 Selling, General and Administrative expenses (22,959 ) (4,323 ) Total 1,047,751 637,611 (1) This line includes the amounts recognized as revenue from contractual remuneration arising from the contract signed with Santander Brazil in the first semester of 2021. See note 13. Banco Santander (Brasil) S.A. - Related Party - On April 16, 2021, Santander Brazil and Getnet established a commercial partnership with each other, within the national territory, for the purpose of offering certain financial and payment services and solutions to their respective customers ("Partnership"). Among the services object of the Partnership, we highlight the anticipation of receivables for the benefit of commercial establishments, whose operations may be conducted and made feasible by Santander Brazil and/or Getnet, subject to the terms of the Partnership. Also within the scope of the Partnership, Santander Brazil will promote the distribution of certain services and products offered by Getnet to its customer base, in addition to providing funding to the credit operations to be conducted by Getnet and/or its subsidiaries. Getnet, in return, will take care of the origination of credit operations and leads for Santander Brazil, through the capture and indication of potential customers who have an interest in contracting credit operations and/or certain services offered by Santander Brazil. Of the total amount of interest on equity, as of December 31, 2021, R$ 178,697 refers to the amounts payable to the controlling shareholders, as detailed in note 12. Compensation of key management personnel The Annual Shareholders’ Meeting held on February 24 , 202 1 , approved an overall annual compensation of Getnet’s management ( Executive Director ’ s and Executive Committee members) totaling up to R$ 23,500 . The total expense paid to the key management personnel throug h December 31 , 2021 was R$ 29,386 ( December 31 , 20 20: R$17,306 and 2019: 17,139). 12/31/2021 12/31/2020 12/31/2020 Fixed compensation 8,123 9,960 7,033 Variable compensation 6,379 2,204 3,032 Total short-term benefits 14,502 12,164 10,065 Variable compensation – Units 10,632 3,673 5,053 Variable compensation – Cash 4,253 1,469 2,021 Total long-term benefits 14,884 5,142 7,074 Total 29,386 17,306 17,139 Getnet has a variable remuneration plan for its key executives which is paid in (i) units of Santander Brazil shares (SANB11), described in the table above as “Variable compensation – Units” and (ii) in cash, described in the table above as “Variable compensation – Cash”, in the form of a retained bonus as part of the executive retention program. The retained bonus amount is fixed in Brazilian reais where 50% will be paid in cash and 50% in units which are purchased at market value and delivered to the executive’ s broker account. The amount equivalent to 60% of the bonus is paid in cash after the closing of the fiscal year of acquisition and the remaining 40% is paid in three annual installments. Additionally, Getnet has long-term compensation programs, linked to performance based on the achievement of goals. The amount of expenses recognized in the profit or loss statement in December 31, 2021, December 31, 2020 and December 31, 2019 is R$21,263, R$7,346 and R$10,106, respectively. Accounting policy The amount earned by the key executives during the year are reported in Selling, General and Administrative expenses in the Consolidated Statement of Income. The provision regarding the retained bonus is recorded at cost, as the amount in cash and in Units is a fixed amount in Brazilians reais. The number of units will be based on the market value of the Santander Brazil ‘units at the date it is transferred to the key executives. The amount regarding the retained bonuses is recorded in Other liabilities in the Balance Sheet. In case the key executive resigns prior the bonus schedule agreed, the equivalent amount is not paid, and equivalent provision is recorded as a credit in specific Selling, General and Administrative expenses . After the provision for the year is recorded in Other liabilities, no change in the provision related to individual or Company performance. |
Share Capital and Reserves
Share Capital and Reserves | 12 Months Ended |
Dec. 31, 2021 | |
Share Capital and Reserves | |
Share Capital and Reserves | 12. Share Capital and Reserves (a) Share capital At the Annual Shareholders’ Meeting held on April 30, 2020, a capital increase of R$232,993 was approved, without the issue of new shares, through the capitalization of reserves for future dividends and profit retention reserve, increasing capital to R$1,422,496 from R$1,189,503, represented by 69,565,000 registered common shares without par value. On February 24, 2021, the shareholder on that date , Santander Bra z il , approved : a stock split at a ratio of one to 26.83421551 as a result of which our capital stock was represented by 1,866,722,202 common shares , with no par value, and a conversion of 916,003,725 common shares into an equal number of preferred shares. The preferred shares created as a result of the split will have dividends calculated with a value 10% higher than the dividends distributed to the holders of the common shares. Capital at December 31 , 2021 and December 31, 2020 is R$1,422,496, represented by 950,718,477 registered common shares and 916,003,725 preferred shares and 1,866,722,202 common shares, respectively . The Company is authorized to increase the capital stock, by resolution of the Board of Directors, independent of statutory reform, up to the total limit of 5 billion common or preferred shares. (b) Retained earnings and other reserves Legal reserve The legal reserve is recognized annually with the allocation of 5% of net income for the year , without exceeding 20% of capital. The purpose of the legal reserve is to ensure the integrity of capital and can only be utilized to offset losses or increase the Company’s capital. Statutory reserve The statutory reserve consists of the balance of the remaining net income for the year , as proposed by the Executive of Director ’ s and approved by the Shareholders’ Meeting . The statutory reserve consists of : (i) fifty percent (50%) profit retention reserve strengthening for the purpose of guaranteeing financial means for Getnet’s operation; and (ii) fifty percent (50%) reserve for dividend equalization for the purpose of guaranteeing adequate funds to continue the semiannual distribution of dividends . Capital reserve The capital reserve was recognized for capital reserves can only be used to offset losses that exceed the retained earnings and other reserves; redeem, reimburse, or buyback of shares; added to the share capital; and other transactions allowed by the Brazilian Corporate Law. In the first quarter of 2021, tax credit of R$398,533 was recognized due to the contribution of tax basis from Santander Brazil . Refer to footnote 1 for details. (c) D ividends and Interest on capital Getnet defined in the bylaws the minimum 25% of the net income, in compliance with the provisions of the Brazilian Corporate Law 6,404/76. On December 31, 2021, the minimum dividends were absorbed by the distribution of interest on equity in the amount of R$ 298,000. The amount recorded r egarding the fiscal year ended December 31 , 202 0 dividends was R$ 829,464 . Accounting policy The distribution of dividends to the Company’s shareholders is recognized as a liability in the Company’s consolidated financial statements at the year end, pursuant to its bylaws. Any amount in excess of the mandatory minimum dividends is accrued on the date such dividends are approved by the Executive Director’s Meeting . Pursuant to the Company’s bylaws, shareholders are entitled to annual minimum dividends equivalent to 25% of net income for the year , adjusted as provided for by the Brazilian Corporate Law. At the end of the reporting period, the Company recognizes a liability for the payment dividends when this distribution becomes a present obligation, corresponding to the portion of unanticipated mandatory minimum dividends and/or additional dividends, the distribution of which has been duly approved by the relevant reporting date. |
Revenue from services and Costs
Revenue from services and Costs of Services | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from services and Costs of Services | |
Revenue from services and Costs of Services | 13. Revenue from services and Costs of Services a) R evenue from services 12/31/2021 12/31/2020 12/31/2019 Merchant acquisition ( 1 1,116,268 1,095,243 1,300,759 Profit share 635,823 623,500 721,143 Contractual remuneration (2) 488,089 - - Processing services revenue and capture 205,086 149,606 84,985 POS sales (1) 28,900 59,012 30,792 Recharges sales 9,708 11,189 6,267 Other 33,979 36,954 66,043 Taxes on services (166,724 ) (173,485 ) (149,311 ) Subtotal 2,351,129 1,802,019 2,060,678 POS rental (1) 553,181 571,323 663,597 Taxes on services (51,169 ) (52,847 ) (61,382 ) Subtotal 502,012 518,476 602,215 Net revenue 2,853,141 2,320,495 2,662,893 Point in time, net of tax 2,351,129 1,802,019 2,060,678 Over time, net of tax 502,012 518,476 602,215 Net revenue 2,853,141 2,320,495 2,662,893 (1) (2) The amount recognized in this line as revenue from contractual remuneration arising from the contract signed between Santander Brazil and Getnet in the first semester of 2021. b) Costs of service s 12/31/2021 12/31/2020 12/31/2019 Fees and commissions (903,777 ) (582,919 ) (471,983 ) Cost of POS sales and other fees (106,125 ) (171,199 ) (84,602 ) Depreciation / amortization (279,522 ) (245,138 ) (218,093 ) Personnel, technology, system and other (469,434 ) (426,936 ) (311,833 ) Total (1,758,858 ) (1,426,192 ) ( ) Accounting policy All revenues earned by the Company follow the revenue recognition concepts, according to the steps described below: - Step 1: identify the contracts with a customer. - Step 2: identify all the individual performance obligations within the contract. - Step 3: determine the transaction price. - Step 4: allocate the price to the performance obligations. - Step 5: recognize revenue when (or as) the entity satisfies a performance obligation. Revenue from contracts with customers is recognized as control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Getnet expects to be entitled in exchange for those goods or services in the ordinary course of Getnet. Getnet as a lessor operates in leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset. POS rental revenues arising is accounted for on a straight-line basis over the lease terms and is included in Revenue from services in the Consolidated Statement of Income due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. POS rental revenue is recognized in the period in which they are earned. Getnet has cancelable month-to-month lease contracts related to electronic transaction capture equipment to third parties. The leased assets are included in ‘Property and equipment’ in the Consolidated Statement of Income and are depreciated over their expected useful lives. Revenues from operating leases (net of any incentives given to the lessee) is recognized on a straight-line basis over the lease term in ‘Revenue from services’ in the line item ‘POS rental’ in the ‘Consolidated Statement of Income’. Getnet revenue from contract with customers and the respective performance obligations and judgments substantially comprises: Merchant acquisition, processing services revenue and capture revenue are recognized at the time the purchase is approved by the financial institution. The performance obligation is satisfied once the electronic payment processing services including the capture, transmission, processing and settlement of transactions carried out using credit and debit cards are approved by the financial institution . Getnet has multiple arrangements with different clients in which consideration is variable upon the volume of transactions processed in a given period of time depending on the clients’ use (i.e., number of payment transactions processed, number of cards on file, etc.); as such, the total transaction price is variable. Getnet allocates the variable fees charged to the day in which it has the contractual right to bill its clients, therefore revenue is recognized at a point in time. Revenue from the rental of the POS to commercial establishments, which are recognized when the service contract obligation is fulfilled. The performance obligation is satisfied over the time of the contract considering the equipment availability upon delivery of the POS to clients. Getnet accounts for equipment rental as a separate performance obligation and recognizes the revenue at its standalone selling price, considering that rental is charged as a fixed monthly fee. Revenue is recognized within net revenue on a straight-line basis over time of the contract, net of tax, beginning when the client obtains control of the equipment lease. Getnet does not manufacture the equipment but purchases from third-party vendors. Resale recharge revenues, which are recognized when the respective credit is transferred to the customer. The performance obligation is satisfied when the digital phone recharge credit is transferred to the clients of commercial establishments . These recharges are s old through POS and the Company acts as an agent of telecommunication operators for the Commercialization of Telephony Recharge Digital Credits since these credits are acquired from telecommunication operators for a fixed price and subsequently sold to the clients through the acquisition cost plus a margin . Since the telecommunication operators has primary responsibility for fulfilling the services to the customer, Getnet account this transaction as an agent. The revenue is recognized at a point in time. Profit share revenue are recognized at the time of transfer of the respective prepayments by Santander Brazil . The performance obligation is satisfied when commercial establishments receive the anticipation of its accounts receivables (Getnet’s account payable) from Santander Brazil to the merchant (commercial establishments) . The transaction price is based on the terms and conditions in which Santander Brazil calculates the profit from prepayment of receivables transactions. In this context, the profit is reduced by the expenses incurred by Santander Brazil in order to provide prepayment of receivables to merchants, including: i) acquiring expenses, which are the costs incurred by Santander Brazil in transferring funds to other banks as a result of the prepayment of receivables and the provision of payment services by Getnet and ii) prepayment expenses. Prep ayment expenses include the following components: (a) the costs incurred by Santander Brazil to fund prepayment of receivables transactions; (b) the expenses incurred by Santander Brazil with technology systems to support the prepayment of receivables to Getnet merchants; (c) taxes incurred in connection with the prepayment of receivables to Getnet merchants; (d) costs incurred by Santander Brazil to transfer funds to commercial establishment’s bank account in connection with the prepayment of receivables to Getnet merchants; and (e) Santander Brazil operating losses in the provision of prepayment of receivables services to Getnet merchants). The Partnership Agreement provides that Santander Brazil will reimburse us the amount of discounts which we provide to attract and/or retain customers which are deemed to be of strategic importance to us and Santander Brazil. Other revenue from services rendered is recognized to the extent that Getnet satisfies the performance obligation s , at a point in time, fulfilling the provision of services. |
Expenses by Nature
Expenses by Nature | 12 Months Ended |
Dec. 31, 2021 | |
Expenses by Nature | |
Expenses by Nature | 14 Expenses by Nature a) Selling, General and Administrative expenses 12/31/2021 12/31/2020 12/31/2019 Personnel expenses and social charges (187,329 ) (160,309 ) (222,367 ) Technical support (99,229 ) (63,517 ) (45,301 ) Depreciation and amortization (78,800 ) (66,695 ) (59,542 ) Advertising (33,049 ) (23,640 ) (50,745 ) Provisions net of reversal (16,096 ) (15,754 ) (14,927 ) Technology and systems (5,378 ) (2,844 ) (10,284 ) Facilities and materials (3,565 ) (3,304 ) (8,267 ) Communications (1,159 ) (1,273 ) (4,424 ) Surveillance and cash transport services (497 ) (410 ) (336 ) Taxes except income tax (271 ) (335 ) (257 ) Other administrative expenses (18,908 ) (10,459 ) (24,218 ) Total (444,281 ) (348,540 ) (440,668 ) b) Other expenses, net Other expenses net includes chargeback and refund expenses when our merchants refuse to or cannot reimburse chargebacks and refunds resolved in favor of their customers. In the event that a billing dispute between a cardholder and a merchant is not resolved in favor of the merchant, including in situations in which the merchant is engaged in fraud, the transaction is typically “charged back” to the merchant and the purchase price is credited or otherwise refunded to the cardholder. If we are unable to collect chargeback from the merchant’s account, or if the merchant refuses to or is unable to reimburse us for a chargeback due to closure, bankruptcy or other reasons, we may bear the loss for the amounts paid to the cardholder. In the years ended December 31, 2021, 2020 and 2019 , Getnet recorded losses as a result of chargebacks net of refunds in the amount of R$ 33.4 million, R$37.7 million million, respectively. |
Finance Income, net
Finance Income, net | 12 Months Ended |
Dec. 31, 2021 | |
Finance Income, net | |
Finance Income, net | 15. Finance Income, net 12/31/2021 12/31/2020 12/31/2019 Finance income: Income from short-term investments 61,177 41,437 95,798 Other (1) 81,526 14,712 1,584 Total 142,703 56,149 97,382 Finance costs: Interest and charges on borrowings (110,715 ) (28,552 ) (12,140 ) Other finance costs (7,086 ) (3,023 ) (14,323 ) Interest expenses incurred on lease liabilities (2,057 ) (1,914 ) (865 ) Total (119,858 ) (33,489 ) (27,328 ) Foreign exchange losses, net (14,316 ) (16,467 ) 3,772 Total 8,529 6,193 73,826 (1) The increase in the line of "Other" occurred due to the beginning of the prepayment transactions of amounts payable to commercial establishments, carried out by Getnet, which intensified at the end of the year due to the operation carried out by Getnet between SCD. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per Share | |
Earnings per Share | 16. Earnings per Share Accounting policy Basic earnings per share The C ompany calculates the value of the basic result per share for the earning or loss attributable to the holders of common and preferred shares of the company and, if presented, the earning or loss resulting from continued operations attributable to the holders of these respective shares by dividing the earning or loss attributable to the holders of common and preferred shares by the weighted average number of common and preferred shares held by shareholders during the year . Diluted earnings per share The C ompany calculates the value of the basic result per share for the earning or loss attributable to the holders of common and preferred shares of the company and, if presented, the earning or loss resulting from continued operations attributable to the holders of these respective shares by dividing the earning or loss attributable to the holders of common and preferred shares by the weighted average number of common and preferred shares held by shareholders during the year that would be issued if all potential dilutive shares had been converted. At December 31 , 202 1 and December 31 , 2020, the re is no difference between basic and diluted earnings per share as there were no potential dilutive rights on these shares. The S tatement of I ncome includes a breakdown of earnings per share. As mentioned in note 12.a, the preferred shares will have dividends calculated with a value 10% higher than the dividends distributed to the holders of the common shares. December 31, 2021 December 31, 2020 Net income for the year attributable to common shareholders ( 1 266,622 361,013 Weighted average number of common shares (in thousands of shares) 1,088,746 1,866,722 Basic and diluted earnings per share for profit attributable to common shareholders (in R$) 0.24 0.19 Net income for the year attributable to preferred shareholders ( 1 209,569 NA Weighted average number of preferred shares (in thousands of shares) 777,976 NA Basic and diluted earnings per share for profit attributable to preferred shareholders (in R$) 0.27 NA (1) Net income attributable to common and preferred shareholders is based on the allocation of total net income based on the respective weighted average number of shares adjusted to reflect a 10% higher allocation of profit per share for preferred shareholders compared to common shareholders in line with the 10% higher preference in dividend distribution. |
Items not affecting cash
Items not affecting cash | 12 Months Ended |
Dec. 31, 2021 | |
Items not affecting cash | |
Items not affecting cash | 17. Items not affecting cash In preparing the Company's statements of cash flows, the net cash generated by financing and investing activities include only those transactions that altered the Company’s cash. The table below shows all the other movements in the balances of investing and financing activities which did not involve the use of cash and/or cash equivalents: December 31, 2021 December 31, 2020 December 31, 2019 Additions and contractual changes (IFRS 16) 7,205 (2,731 ) 12,659 Tax credit – spin-off (1) 398,533 - - Dividends/interest on net equity declared and not yet paid 298,000 29,227 67.518 (1) Refers tax credit related the spin-off. See note 1 “The spin-off of Getnet from Banco Santander (Brasil) S.A.” for further details. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent events | |
Subsequent events | 18. Subsequent events Appointment of the new Chief Executive Officer The Company's Board of Directors met on January 31, 2022 and elected Mr. Cassio Schmitt as Getnet's new Chief Executive Officer (CEO), scheduled for April 1, 2022 and subject to approval by the Central Bank of Brazil. The announcement made to the market takes place in continuation of the Material Fact released on December 7, 2021 (when the resignation of the current CEO, Pedro Carlos Araújo Coutinho, responsible for executive functions until March 31, 2022 was announced). Mr. Schmitt is B razilian, with a degree in economics from the Federal University of Rio Grande do Sul, a master's degree in corporate economics from Fundação Getúlio Vargas, and an MBA from the Sloan School of Business, Massachusetts Institute of Technology. He has extensive experience in the financial market, having passed through Unibanco, among other financial institutions. In 2004 he joined Banco Santander Brasil, having gone through different positions, such as Project Finance, Risks and Credit Recovery. His last role at Santander was as director responsible for the Companies, Governments and Institutional Retail Sector. UN Global Compact On January 24, 2022, the Company informed the market of its agreement to the UN Global Compact. The Global Compact is a voluntary Initiative of the United Nations that aims to mobilize business practices of the business community in the areas of human rights, labor, environment and anti-corruption. Getnet's agreement endorses sustainability as a strategic and cultural pillar of the Company, integrating this initiative with the other fronts already in operation. The Company since 2021 has focused on scaling ESG 's actions from a perspective covering business, risk management, governance and fronts issues to engage stakeholders and generate value for customers and society. Getnet throughout 2021 made other public commitments such as the signing of the Women's Empowerment Principles, the UN's initiative for women's empowerment in companies, and the UN Free & Equal initiative, aimed at the LGBTQIA+ front. |
Basis of preparation (Policies)
Basis of preparation (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Basis of preparation | |
Basis of consolidation | A ccounting policy The accounting policies below are applied in the preparation of the consolidated financial statements : Subsidiaries Subsidiaries are all entities over which Getnet holds control. Subsidiaries are consolidated from the date on which control is transferred to Getnet. Consolidation is discontinued when control no longer exists. Identifiable assets acquired and liabilities and contingent liabilities assumed in the acquisition of a subsidiary are initially measured at their fair values at the acquisition date. All intragroup transactions, balances and unrealized gains are eliminated on consolidation. Unrealized losses are also eliminated, unless the transaction provides evidence of impairment of the transferred asset. The subsidiaries’ accounting policies are amended according to Getnet’s accounting policies, as applicable. |
Financial Instruments (Policies
Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments | |
Financial assets | Accounting policy Financial assets are classified into the following categories: (i) amortized cost; (ii) fair value through other comprehensive income; and (iii) fair value through profit or loss. T he basis for classification depends on the Company’s business financial assets management model and the contractual cash flow characteristics of the financial asset . The classifications of the financial assets are detailed below: Amortized cost Held within the business model in order to collect to collect contractual cash flows; these cash flows represent solely payments of principal and interest and are, therefore, initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method, less provisions for reduction to recoverable amount. Interest income from these financial assets is recognized in finance income. Any gains or losses due to the write-off of the asset are recognized directly in the profit or loss, together with foreign exchange gains and losses. Impairment losses are presented separately in the Consolidated S tatement of I ncome . Fair value through other comprehensive income (FVOCI) A financial asset is measured at fair value through comprehensive income if it meets the concept of principal and interest only payments and is held within the business model whose objective is to both , collecting contractual cash flows and selling the financial assets. Changes in carrying amount are recognized in other comprehensive income, except for the recognition of impairment gains or losses, interest income, and foreign exchange gains and losses, which are recognized in the profit or loss. When the financial asset is derecognized, the cumulative gains or losses that had been previously recognized in other comprehensive income are reclassified from equity to profit or loss. Interest income from these financial assets is recognized in finance income using the effective interest method. Fair value through profit or loss (FVPL) Assets are measured at fair value through profit or loss when they do not meet the criteria to be classified at amortized cost or at fair value through other comprehensive income or when on initial recognition was designated to eliminate or reduce an accounting mismatch. Any exchange gains or losses are recognized in the Consolidate Statement of Income . Derecognition of financial assets The Company derecognizes financial assets when the contractual rights to the cash flows from investing activities expire or when it transfers the investments and substantially all the risks and rewards of ownership to another entity. Expected credit losses Getnet assesses, on a prospective basis at each reporting date, the expected credit losses on financial assets carried at amortized cost and at fair value through other comprehensive income. The impairment assessment methodology applied depends on whether there is a significant increase in credit risk and the loss is estimated as the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. Expected cash flows will include cash flows from the sale of collaterals held or other credit enhancements that are integral to the contractual terms. The Company recognizes an allowance for ECLs for all financial assets not measured at FVPL. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that Getnet expects to receive, discounted at an approximation of the original effective interest rate. Getnet applies a simplified approach in calculating ECLs, therefore, Getnet instead recognizes a loss allowance based on lifetime ECLs, provision matrix and days past due at each reporting date. For accounts receivable, Getnet applies the simplified approach as permitted by IFRS 9 by recognizing lifetime expected credit losses from the initial recognition of the receivables. |
Financial liabilities | Accounting policy On initial recognition, financial liabilities are classified as (i) financial liabilities at fair value through profit or loss; or (ii) financial liabilities at amortized cost, as appropriate . Amortized cost Initially measured at fair value, net of transaction costs, and subsequently measured at amortized cost using the effective interest method, with interest expense recognized on a in profit or loss . Gains and losses from these financial liabilities are recognized in the Consolidated S tatement of I ncome . |
Fair value estimation | Accounting policy Fair value is the price that would be received to sell an asset or paid to transfer a liability in the major or most advantageous market, in an orderly transaction between market participants at the measurement date. A three-level hierarchy is used to measure and disclose fair value, as shown below: Level 1 —Prices quoted (unadjusted) in active markets for identical assets or liabilities. For investments in investment funds, the price of the fund unit share is an appropriate indicator of fair value and falls into this fair value hierarchy category. For the financial investments, fair value is determined based on the interbank deposit interest rate (DI), released to the market through official agencies (Cetip, BACEN, etc.), and from the fund unit value published by CVM, respectively . Level 2 — Inputs, other than quoted prices included in Level 1, that are observable in the market for assets or liabilities, either directly (such as prices) or indirectly (derived from prices). This category includes (i) accounts receivable; (ii) loans and borrowings ; and (i ii ) other assets and other liabilities . For loans and borrowings , fair value was determined using the expected payment of principal and interest until maturity at the contractual rates. Level 3 —Inputs on assets or liabilities that are not based on observable data adopted by the market (i.e., unobservable inputs). The valuation technique for the fair values of the other financial instruments classified as Level 3 is the discounted cash flow method. Getnet does not have assets or liabilities measured at Level 3 fair value. |
Sensitivity analysis | Accounting policy Sensitivity analysis to foreign currency The sensitivity analysis includes outstanding monetary items and foreign currency-denominated transaction (U . S . D ollar s ), such as l oans and borrowings , and adjusts their translation at the end of each year by the exchange rates, taking into account the changes shown above . Sensitivity analysis to changes in interest rates The yield on short-term investments and the interest from loans are mainly affected by changes in the interbank deposit interest rate (DI) and SELIC. |
Leases (Policies)
Leases (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | Accounting policy Getnet leases several floors of office buildings for its administrative department s . Leases are recognized as a right-of-use asset and a corresponding lease liability on the date the leased asset becomes available for use by Getnet. Each lease payment is allocated between principal and finance costs. Finance costs are recognized in the Consolidated S tatement of I ncome over the lease term. The right-of-use asset is depreciated over the lease term on a straight-line basis. Assets and liabilities arising from a lease are initially measured at present value. Lease liabilities include the net present value of the following lease payments: Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable. Variable lease payments that depend on an index or rate. Amounts expected to be payable by the Getnet, under the residual value guarantees. The exercise price of purchase options, if Getnet is reasonably certain to exercise the options. Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease. Lease payments are discounted using Getnet’s incremental borrowing rate, which is the rate Getnet would have to pay on a loan to obtain the funds necessary to acquire an asset of similar value, in a similar economic environment, under equivalent terms and conditions. Right-of-use assets are measured at cost, according to the following items: The initial measurement amount of the lease liability. Any lease payments made on or before the commencement date, less any lease incentives received. Any initial direct costs. Restoration costs. Getnet’s property leases include extension options. These terms are used to maximize operational flexibility in terms of contract management. Payments associated with short-term property leases are recognized on the straight-line basis as an expense in profit or loss. Short-term leases are leases with term of 12 months or less. |
Intangible Assets (Policies)
Intangible Assets (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets | |
Intangible Assets | Accounting policy Intangible assets represent identifiable non-monetary assets (separable from other assets), without physical substance, arising from business combinations , in-house developed software, or use licenses with finite or indefinite useful lives. Only assets whose cost can be reliably estimated and which the consolidated entities consider to be probable that they will generate future economic benefits are recognized. Intangible assets are initially recognized at purchase or production cost and are subsequently measured less any accumulated amortization and any impairment losses. Other intangible assets are considered to have indefinite useful lives when, based on a review of all relevant factors, it is concluded that there is no foreseeable limit to the period over which an asset is expected to generate cash inflows for the Company. Intangible assets with indefinite useful lives are not amortized, but rather at the end of each annual period, the entity reviews the remaining useful lives of the assets in order to determine whether they continue to be indefinite and, if this is not the case, the change should be accounted for as a change in accounting estimate. Goodwill impairment assessment is performed annually or more frequently if events or changes in circumstances indicate possible impairment. Intangible assets with finite useful lives are amortized over those useful lives using methods similar to those used to depreciate property and equipment. Amortization expenses are recognized in line item ‘Depreciation and amortization’ in the Consolidated S tatement of I ncome . At the end of each year, Getnet assess es whether there is indication that its intangible assets might be impaired, i.e., whether the carrying amount of an asset exceeds its probable realizable value. If an impairment loss is identified, the recoverable amount is written down until it reaches the asset’s realizable value. Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized when the asset's carrying amount exceeds its recoverable amount, which is the higher of an asset's fair value less costs of disposal or its value in use. Goodwill on acquisitions When an investment in a subsidiary is acquired, any difference between the investment cost and the investor’s share of the net fair value of the investee’s identifiable assets, liabilities, and contingent liabilities (subsidiary or associate) is accounted for in accordance with IFRS 3. Goodwill is recognized only when the amount of the consideration transferred for an investee exceeds its fair value at the acquisition date, and therefore represents a payment made by the acquirer in anticipation of future economic benefits from assets of the acquiree that cannot be individually identified and separately recognized. The net fair value adjustments to an investee’s identifiable assets, liabilities and contingent liabilities based on their carrying amounts are individually allocated to the identifiable assets acquired and liabilities assumed based on their respective fair values at the acquisition date. Assets that have an indefinite useful life, such as goodwill, are not subject to amortization and are tested annually to identify any impairment. Impairment reviews of goodwill are performed annually or more frequently if events or changes in circumstances indicate possible impairment. At December 31, 2021 and December 31, 2020, Getnet has not identified the need to make any adjustments for impairment. Internally generated intangible asset Expenditure on research activities is recognized as an expense for the year when incurred. The expenses with projects that are not activated are recognized in the line of Selling, General and Administrative expenses . When a n internally generated intangible asset can be recognized, development expenditure is capitalized in intangible asset in the balance sheet, and amortized in the line item ‘Cost of services’ for POS software and in the line item ‘ Selling, General and Administrative expenses ’ for other intangible assets , in the ‘ Consolidated Statement of Income ’. Systems in development Getnet capitaliz es expenses that are directly related to the internal development of software for their own operations, provided that the aspects required for recognition are met. The main expenses are related to internal labor for the development of the systems used by Getnet. Research e xpe nditure is recorded as expenses when incurred. These projects evolve through an assessment of the IT and Accounting areas in order to verify their adherence to IAS 38 and whether they should be classified as Intangible Assets or Expenses. For further details refer to note 14 – (technology and systems). The provision for impairment o f intangible assets is recognized according to the probable losses identified between the activated software and the systems in development. Getnet, through a technical team, monitors the performance of the systems taking into consideration technological and market aspects related to the continuity of the operation. |
Property and Equipment (Policie
Property and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Property and Equipment | |
Property and Equipment | Accounting policy Property and equipment items are measured are the historical purchase or construction cost, less accumulated depreciation. When applicable, impairment losses are recognized directly in profit or loss for the year . Costs include expenditure directly attributable to the purchase of an asset. The costs of internally generated assets include the costs of materials and direct labor, any other costs to bring the asset to the required location and conditions necessary to operate as expected by m anagement . The replacement cost of a property and equipment item is recognized in its carrying value when it is probable that the economic benefits associated with such item will flow to the Company and its cost can be reliably measured. The costs of day-to-day maintenance of property and equipment are recognized in the S tatement of I ncome as incurred, such as: removal of equipment from the point of sale, repair, reinstallation, freight, and other costs. An item of property and equipment is written off when sold or when no future economic benefits are expected from its use or sale. Any gain or loss arising on the write-off of an asset (determined as the difference between sales proceeds and the carrying amount of the asset) is recognized in the income statement for the year in which the asset is written off. Getnet’s main property and equipment are point-of-sale (“POS”) terminals, valued for a useful life of three years. This useful life was defined taking into consideration the maintenance performed during the use of the equipment, the lack of spare parts, the technological changes occurred and in progress, and the economic environment in which they operate, considering the planning and other idiosyncrasies of Getnet’s business and the increase in production (data capture and processing transactions by the merchants). The costs incurred internally and with third parties directly attributable to the installation of the POSs are allocated as property and equipment. Depreciation is calculated on the purchase cost of the asset, plus all costs incurred to bring the asset to the operating conditions expected by m anagement , less its residual value, if any. To calculate depreciation, the Company’s estimates the useful life of each class of tangible assets. This estimate most appropriately reflects the pattern of consumption of the future economic benefits embodied in that class of assets. Depreciation expenses are recognized in the S tatement of I ncome on a straight-line basis. Company doesn’t identify changes in the useful life of your assets comparing to last year . |
Provision for tax, civil and _2
Provision for tax, civil and labor risks (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Provision for tax, civil and labor risks | |
Provision for tax, civil and labor risks | Accounting policy Provisions for risks (labor, civil, and tax) are recognized when: (a) there is a present obligation as a result of a past event; (b) it is probable that an outflow of funds will be required to settle the obligation; and (c) the amount has been reliably estimated. In case of a series of similar obligations, the likelihood that an outflow will be required to settle them is determined taking into consideration the class of obligations as a whole. A provision for tax, civil and labor risks is recognized in the consolidated financial statements when the risk of loss in an administrative or judicial proceeding is considered probable, with a probable disbursement of funds to settle the obligations, and whenever the amounts involved can be reliably measured. The definition of the probab ility of loss is an estimate based on the opinion of legal advisors and management , the nature of the proceedings, similarity with previous cases, and the complexity of the courts. Contingent assets are not recognized in consolidated financial statements since the y refer to results that might never be realized. However, when the realization of the gain is virtually certain, then the related asset is no longer a contingent asset and its recognition becomes appropriate. Contingent assets with a probable favorable outcome are only disclosed in the notes to the consolidated financial statements. At December 31 , 202 1 and December 31, 2020 , Getnet had no contingent assets. Contingent liabilities assessed as possible losses are not recognized in consolidated financial statements and are instead only disclosed in explanatory notes. Contingent liabilities assessed as remote losses are neither recognized nor disclosed. |
Income Tax and social contrib_2
Income Tax and social contribution and Other Taxes (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax and social contribution and Other Taxes | |
Income Tax and social contribution and Other Taxes | Accounting policy The provisions for current taxes are recognized at a 15% rate plus 10% surtax for income tax and a 9% rate for social contribution on profit adjusted according to the prevailing tax law . Deferred income tax and social contribution are entirely recognized on temporary differences between assets and liabilities recognized for tax purposes and the carrying amounts of assets and liabilities in the consolidated financial statements. Deferred income tax and social contribution are determined based on the tax rates and tax law in effect at the date the consolidated financial statements are prepared and applicable when the related income tax and social contribution are realized. The recovery of the balance of deferred tax assets is reviewed on a quarterly basis and, when it is no longer probable that future taxable income will be available to allow the recovery of all or part of the assets, these are adjusted for the expected recoverable amount . Current and deferred taxes are recognized in profit or loss unless they are related to items recognized directly in equity . Taxes on revenue is related to PIS and COFINS that are contributions levied by the Brazilian Federal government on gross revenues. These amounts are invoiced to and collected from the Company’s customers and recognized as deductions to gross revenue (Note 13 a) ) against tax liabilities, as we are acting as tax withholding agents on behalf of the tax authorities. PIS and COFINS paid on certain purchases may be claimed back as tax credits to offset PIS and COFINS payable. These amounts are recognized as Recoverable taxe s and are offset on a monthly basis against Taxes payable (Note 1 0.3 ) and presented net, as the amounts are due to the same tax authority. Taxes on services is related to ISS is a tax levied by municipalities on revenues from the provision of services. ISS tax is added to amounts invoiced to the Company ’s customers for the services the Company renders. These are recognized as deductions to gross revenue (Note 1 3 a) ) against tax liabilities, as the Group acts as agent collecting these taxes on behalf of municipal governments. |
Related Parties (Policies)
Related Parties (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Related Parties | |
Related Parties | Accounting policy The amount earned by the key executives during the year are reported in Selling, General and Administrative expenses in the Consolidated Statement of Income. The provision regarding the retained bonus is recorded at cost, as the amount in cash and in Units is a fixed amount in Brazilians reais. The number of units will be based on the market value of the Santander Brazil ‘units at the date it is transferred to the key executives. The amount regarding the retained bonuses is recorded in Other liabilities in the Balance Sheet. In case the key executive resigns prior the bonus schedule agreed, the equivalent amount is not paid, and equivalent provision is recorded as a credit in specific Selling, General and Administrative expenses . After the provision for the year is recorded in Other liabilities, no change in the provision related to individual or Company performance. |
Share Capital and Reserves (Pol
Share Capital and Reserves (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Share Capital and Reserves | |
Dividends | Accounting policy The distribution of dividends to the Company’s shareholders is recognized as a liability in the Company’s consolidated financial statements at the year end, pursuant to its bylaws. Any amount in excess of the mandatory minimum dividends is accrued on the date such dividends are approved by the Executive Director’s Meeting . Pursuant to the Company’s bylaws, shareholders are entitled to annual minimum dividends equivalent to 25% of net income for the year , adjusted as provided for by the Brazilian Corporate Law. At the end of the reporting period, the Company recognizes a liability for the payment dividends when this distribution becomes a present obligation, corresponding to the portion of unanticipated mandatory minimum dividends and/or additional dividends, the distribution of which has been duly approved by the relevant reporting date. |
Revenue from services and Cos_2
Revenue from services and Costs of Services (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from services and Costs of Services | |
Revenue from services and Costs of Services | Accounting policy All revenues earned by the Company follow the revenue recognition concepts, according to the steps described below: - Step 1: identify the contracts with a customer. - Step 2: identify all the individual performance obligations within the contract. - Step 3: determine the transaction price. - Step 4: allocate the price to the performance obligations. - Step 5: recognize revenue when (or as) the entity satisfies a performance obligation. Revenue from contracts with customers is recognized as control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Getnet expects to be entitled in exchange for those goods or services in the ordinary course of Getnet. Getnet as a lessor operates in leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset. POS rental revenues arising is accounted for on a straight-line basis over the lease terms and is included in Revenue from services in the Consolidated Statement of Income due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. POS rental revenue is recognized in the period in which they are earned. Getnet has cancelable month-to-month lease contracts related to electronic transaction capture equipment to third parties. The leased assets are included in ‘Property and equipment’ in the Consolidated Statement of Income and are depreciated over their expected useful lives. Revenues from operating leases (net of any incentives given to the lessee) is recognized on a straight-line basis over the lease term in ‘Revenue from services’ in the line item ‘POS rental’ in the ‘Consolidated Statement of Income’. Getnet revenue from contract with customers and the respective performance obligations and judgments substantially comprises: Merchant acquisition, processing services revenue and capture revenue are recognized at the time the purchase is approved by the financial institution. The performance obligation is satisfied once the electronic payment processing services including the capture, transmission, processing and settlement of transactions carried out using credit and debit cards are approved by the financial institution . Getnet has multiple arrangements with different clients in which consideration is variable upon the volume of transactions processed in a given period of time depending on the clients’ use (i.e., number of payment transactions processed, number of cards on file, etc.); as such, the total transaction price is variable. Getnet allocates the variable fees charged to the day in which it has the contractual right to bill its clients, therefore revenue is recognized at a point in time. Revenue from the rental of the POS to commercial establishments, which are recognized when the service contract obligation is fulfilled. The performance obligation is satisfied over the time of the contract considering the equipment availability upon delivery of the POS to clients. Getnet accounts for equipment rental as a separate performance obligation and recognizes the revenue at its standalone selling price, considering that rental is charged as a fixed monthly fee. Revenue is recognized within net revenue on a straight-line basis over time of the contract, net of tax, beginning when the client obtains control of the equipment lease. Getnet does not manufacture the equipment but purchases from third-party vendors. Resale recharge revenues, which are recognized when the respective credit is transferred to the customer. The performance obligation is satisfied when the digital phone recharge credit is transferred to the clients of commercial establishments . These recharges are s old through POS and the Company acts as an agent of telecommunication operators for the Commercialization of Telephony Recharge Digital Credits since these credits are acquired from telecommunication operators for a fixed price and subsequently sold to the clients through the acquisition cost plus a margin . Since the telecommunication operators has primary responsibility for fulfilling the services to the customer, Getnet account this transaction as an agent. The revenue is recognized at a point in time. Profit share revenue are recognized at the time of transfer of the respective prepayments by Santander Brazil . The performance obligation is satisfied when commercial establishments receive the anticipation of its accounts receivables (Getnet’s account payable) from Santander Brazil to the merchant (commercial establishments) . The transaction price is based on the terms and conditions in which Santander Brazil calculates the profit from prepayment of receivables transactions. In this context, the profit is reduced by the expenses incurred by Santander Brazil in order to provide prepayment of receivables to merchants, including: i) acquiring expenses, which are the costs incurred by Santander Brazil in transferring funds to other banks as a result of the prepayment of receivables and the provision of payment services by Getnet and ii) prepayment expenses. Prep ayment expenses include the following components: (a) the costs incurred by Santander Brazil to fund prepayment of receivables transactions; (b) the expenses incurred by Santander Brazil with technology systems to support the prepayment of receivables to Getnet merchants; (c) taxes incurred in connection with the prepayment of receivables to Getnet merchants; (d) costs incurred by Santander Brazil to transfer funds to commercial establishment’s bank account in connection with the prepayment of receivables to Getnet merchants; and (e) Santander Brazil operating losses in the provision of prepayment of receivables services to Getnet merchants). The Partnership Agreement provides that Santander Brazil will reimburse us the amount of discounts which we provide to attract and/or retain customers which are deemed to be of strategic importance to us and Santander Brazil. Other revenue from services rendered is recognized to the extent that Getnet satisfies the performance obligation s , at a point in time, fulfilling the provision of services. |
Earnings per Share (Policies)
Earnings per Share (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per Share | |
Earnings per Share | Accounting policy Basic earnings per share The C ompany calculates the value of the basic result per share for the earning or loss attributable to the holders of common and preferred shares of the company and, if presented, the earning or loss resulting from continued operations attributable to the holders of these respective shares by dividing the earning or loss attributable to the holders of common and preferred shares by the weighted average number of common and preferred shares held by shareholders during the year . Diluted earnings per share The C ompany calculates the value of the basic result per share for the earning or loss attributable to the holders of common and preferred shares of the company and, if presented, the earning or loss resulting from continued operations attributable to the holders of these respective shares by dividing the earning or loss attributable to the holders of common and preferred shares by the weighted average number of common and preferred shares held by shareholders during the year that would be issued if all potential dilutive shares had been converted. |
Basis of preparation (Tables)
Basis of preparation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Basis of preparation | |
Schedule of subsidiaries included in consolidation | Subsidiary Type Equity interest % Auttar H.U.T. Processamento de Dados Ltda. (“Auttar”) Subsidiary 100% Getnet Sociedade de Crédito Direto S.A (“SCD”) Subsidiary 100% Eyemobile Tecnologia S.A. (“ Eyemobile ”) ( 1 Subsidiary 60% ( 1 On May 12, 2021, Getnet Adquirência e Serviços para Meios de Pagamentos S.A. entered into an investment and other agreements with Eyemobile, as consenting intervening party, establishing the terms of the negotiation for the purchase and sale of the shares representing Eyemobile's capital stock. The control acquisition was concluded on August 3, 2021, so that Getnet now holds 60% of Eyemobile's voting shares for the amount of R$19,415, corresponding to the equity value of the shares on the purchase date, plus the amount of the contribution of the shares paid up upon subscription. The Company's corporate purpose is to explore the development and licensing of customizable computer programs, the rental of office machines and equipment, and the specialized retail trade of computer equipment and supplies . |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments | |
Schedule of financial instruments | December 31, 2021 December 31, 2020 Amortized cost Fair value through other comprehensive income Total Amortized cost Fair value through other comprehensive income Total Financial assets Current Cash and cash equivalents 670,441 - 670,441 265,096 - 265,096 Financial investments 875,240 555,413 1,430,653 393,783 531,600 925,383 Accounts receivable 54,578,684 - 54,578,684 39,968,233 - 39,968,233 Other assets 200,491 - 200,491 205,718 - 205,718 Total financial assets 56,324,856 555,413 56,880,269 40,832,830 531,600 41,364,430 Financial liabilities Current/Non-current Accounts payable 51,610,405 - 51,610,405 38,767,156 - 38,767,156 Loans and borrowings 3,489,858 - 3,489,858 1,091,157 - 1,091,157 Lease liabilities 26,315 - 26,315 23,049 - 23,049 Other liabilities 236,990 - 236,990 307,205 - 307,205 Total financial liabilities 55,363,568 - 55,363,568 40,188,567 - 40,188,567 |
Schedule of cash and cash equivalents | 12/31/2021 12/31/2020 Cash 229 41 Short-term bank deposits 646,304 255,407 Foreign currency cash and investments abroad (1) 23,908 9,648 Total 670,441 265,096 (1) Refers to highly liquid financial investments in U.S. Dollars. |
Schedule of financial investments | 12/31/2021 12/31/2020 Brazilian treasury bonds (1) 555,413 531,600 Short-term investment (2) 875,240 393,783 Total 1,430,653 925,383 (1 ) Consists of investments in Brazilian Treasury Bonds ("LFTs") with an interest rate of 99.04 % of the Basic Interest Rate (SELIC – 9.25 % and 2.0 % for the year ended December 31, 202 1 and December 2020, respectively ) , invested to comply with certain requirements for authorized payment institutions as set forth by the BACEN regulation. This financial asset was classified at fair value through other comprehensive income. (2) Refer to the amounts invested in the SBAC Investment Fund, remunerated at DI rate ( the Brazilian interbank deposit rate), where Getnet holds participation units. The underlying assets of the fund comprises substantially in public securities and repo with high liq uidity (Level 1 – Further details note 5.3). |
Schedule of accounts receivable | 12/31/2021 12/31/2020 Accounts receivable from card issuers 54,131,057 39,610,114 Other accounts receivable from clients 509,359 416,443 Provision for expected credit losses (61,732 ) (58,324 ) Total 54,578,684 39,968,233 |
Schedule of movements in the provision for expected credit losses | 12/31/2021 12/31/2020 12/31/2019 Opening balance 58,324 66,564 75,109 Additions 67,351 69,789 83,293 Reversals (63,943 ) (78,029 ) (91,838) Closing balance 61,732 58,324 66,564 |
Schedule of loans and borrowings | 12/31/2021 12/31/2020 Financial liabilities at amortized cost (1) 3,489,858 1,091,157 Total 3,489,858 1,091,157 (1) |
Schedule of types of operations and rates used in loans and borrowings | Rate Maturity 12/31/2021 12/31/2020 Working capital financing (1) 110.63 (2) 02/22 2,993,507 1,051,358 Working capital financing 9.16 (2) 01/22 457,416 - BNDES/ FINAME 3.75 - - 2,957 Other financing 11.11% - 11.15% p.y. 05/24 - 02/25 38,935 36,842 Total 3,489,858 1,091,157 (1) Related to Santander Brazil transaction. See note 1 1 for further details. (2) CDI rate means the Brazilian interbank deposit ( Certificado de Depósito Interbancário ) rate, which is an average of interbank overnight rates in Brazil . Refer to note 1 9 for further details . |
Schedule of movements in loans and borrowings | Balance at December 31, 2018 96,570 Additions 599,160 Principal payments (50,054 ) Accrued interest 12,140 Interest paid (5,271 ) Balance at December 31, 2019 652,545 Additions 2,842,742 Principal payments (2,399,622 ) Accrued interest 28,552 Interest paid (33,060 ) Balance at December 31, 2020 1,091,157 Additions 6,511,673 Principal payments (4,164,474 ) Accrued interest 110,715 Interest paid (59,213 ) Balance at December 31, 2021 3,489,858 |
Schedule of debt breakdown (by maturity) | December 31, 2021 December 31, 2020 Up to 3 months 3-12 months Over 12 months Total Up to 3 months 3-12 months Over 12 months Total Loans and borrowings from domestic financial institutions 3,454,903 9,813 25,142 3,489,858 1,058,034 5,313 27,810 1,091,157 |
Schedule of fair value of financial instruments | December 31, 2021 Book value Fair value Level 1 Level 2 Total Level 1 Level 2 Total Financial assets Cash and cash equivalents 670,441 - 670,441 670,441 - 670,441 Financial investments 1,430,653 - 1,430,653 1,430,653 - 1,430,653 Accounts receivable - 54,578,684 54,578,684 - 54,578,684 54,578,684 Other assets - 200,491 200,491 - 200,491 200,491 Total financial assets 2,101,094 54,779,175 56,880,269 2,101,094 54,779,175 56,880,269 Financial liabilities Accounts payable - 51,610,405 51,610,405 - 51,610,405 51,610,405 Loans and borrowings - 3,489,858 3,489,858 - 3,489,858 3,489,858 Lease liabilities - 26,315 26,315 - 26,315 26,315 Other liabilities - 236,990 236,990 - 236,990 236,990 Total financial liabilities - 55,363,568 55,363,568 - 55,363,568 55,363,568 December 31, 2020 Book value Fair value Level 1 Level 2 Total Level 1 Level 2 Total Financial assets Cash and cash equivalents 265,096 - 265,096 265,096 - 265,096 Financial investments 925,383 - 925,383 925,383 - 925,383 Accounts receivable - 39,968,233 39,968,233 - 39,968,233 39,968,233 Other assets - 205,718 205,718 - 205,718 205,718 Total financial assets 1,190,479 40,173,951 41,364,430 1,190,479 40,173,951 41,364,430 Financial liabilities Accounts payable - 38,767,156 38,767,156 - 38,767,156 38,767,156 Loans and borrowings - 1,091,157 1,091,157 - 1,091,157 1,091,157 Lease liabilities - 23,049 23,049 - 23,049 23,049 Other liabilities - 307,205 307,205 - 307,205 307,205 Total financial liabilities - 40,188,567 40,188,567 - 40,188,567 40,188,567 (1) The carrying values of O ther assets are measured at amortized cost, less the provision for impairment and adjustment to present value, when applicable. These amounts refer mainly to judicial deposit, protection deposit of BACEN . (2) The carrying values of O ther liabilities are measured at amortized cost . These amounts refer mainly to payables to suppliers . |
Schedule of sensitivity analysis of changes in foreign exchange rates | December 31, 2021 December 31, 2020 Assets Cash and cash equivalents 23,951 9,688 Accounts receivable 22,181 20,707 Other assets 139 - Liabilities Accounts payable - - Net exposure 46,271 30,395 December 31, 2021 Probable scenario Possible scenario Remote scenario +/-10% +/-25% +/-50% Net effect on profit or loss 4,627 11,568 23,136 December 31, 2020 Probable scenario Possible scenario Remote scenario +/-10% +/-25% +/-50% Net effect on profit or loss 3,039 7,599 15,197 Translation rates in the year ended: USD:BRL 12/31/2021 5.5805 12/31/2020 5.1967 Analysis rates in the years ending in: SELIC 12/31/2021 9.15% p.y. 12/31/2020 1.90 % p.y. |
Schedule of sensitivity analysis of changes in interest rates | Sensitivity analysis of changes in interest rates December 31, 2021 December 31, 2020 Assets Financial investments 1,430,566 925,383 Accounts receivable and other assets 182,245 72,575 Liabilities Loans and borrowings (3,450,483 ) (1,051,358 ) Net exposure (1,837,672 ) (53,400 ) December 31, 2021 Probable scenario Possible scenario Remote scenario +/-10% +/-25% +/-50% Net effect on profit or loss (16,815 ) (42,037 ) (84,073 ) December 31, 2020 Probable scenario Possible scenario Remote scenario +/-10% +/-25% +/-50% Net effect on profit or loss (101 ) (254 ) (507 ) Probable Scenario: taking into account a 10% deterioration in the associated risk variables . Possible Scenario: taking into account a 25% deterioration in the associated risk variables. Remote Scenario: taking into account a 50% deterioration in the associated risk variables. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Schedule of balances recognized in balance sheet | Right-of-use-asset December 31, 2018 21,172 Additions and contractual changes 12,659 Depreciation (3,829 ) December 31, 2019 30,002 Additions and contractual changes (2,731 ) Depreciation (5,366 ) December 31, 2020 21,905 December 31, 2020 21,905 Additions and contractual changes 7,205 Depreciation (3,407 ) December 31, 2021 25,703 Lease liabilities December 31, 2018 22,842 Additions and contractual changes 15,121 Payments (8,199 ) Interest 865 December 31, 2019 30,629 Additions and contractual changes (2,801 ) Payments (6,693 ) Interest 1,914 December 31, 2020 23,049 December 31, 2020 23,049 Additions and contractual changes 5,364 Payments (4,155 ) Interest 2,057 December 31, 2021 26,315 |
Schedule of expenses recognized in consolidated statement of income | December 31, 2019 Depreciation 3,829 Interest expense 865 Total 4,694 December 31, 2020 Depreciation 5,366 Interest expense 1,914 Total 7,280 December 31, 2021 Depreciation 3,407 Interest expense 2,057 Total 5,464 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets | |
Schedule of intangible assets | 12/31/2021 12/31/2020 Goodwill Getnet Tecnologia 669,831 669,831 Goodwill Eyemobile 18,659 - Other intangible assets 196,593 163,976 Total 885,083 833,807 |
Schedule of goodwill | Goodwill Eyemobile Acquisition value paid in cash 9,415 Paid-in capital at the time of subscription 10,000 Contingent consideration 5,500 Total acquisition value (a) 24,915 Total net book value 10,426 Interest 60 % Net book value of the assets acquired and liabilities assumed (b) 6,256 Goodwill to be allocated (a - b) 18,659 Net cash outflow on acquisition of Eyemobile Consideration paid in cash ( ) Paid-in capital at the time of subscription ( ) Cash and cash equivalents acquired from Eyemobile 10,155 Net consideration presented in the statement of cash flows ( ) |
Schedule of other intangibles | Acquisition cost 12/31/2020 Additions Disposals/ Transfers Eyemobile (1) 12/31/2021 Software and software licenses 369,239 1,968 26,799 605 398,611 Systems in development 70,311 46,669 (9,596 ) - 107,384 Provision for impairment (1,077 ) (3,376 ) - - (4,453 ) Total 438,473 45,261 17,203 605 501,542 Accumulated amortization 12/31/2020 Additions Disposals/ Transfers Eyemobile (1) 12/31/2021 Software and license amortization (274,497 ) (30,452 ) - - (304,949 ) Total (274,497 ) (30,452 ) - - (304,949 ) Total, net 163,976 14,809 17,203 605 196,593 (1) Acquisition cost 12/31/2019 Additions Disposals/ Transfers 12/31/2020 Software and software licenses 296,805 36,459 35,975 369,239 Systems in development 48,512 56,301 (34,502 ) 70,311 Provision for impairment (2,319 ) (104 ) 1,346 (1,077 ) Total 342,998 92,656 2,819 438,473 Accumulated amortization 12/31/2019 Additions Disposals/ Transfers 12/31/2020 Software and license amortization (203,498 ) (39,221 ) (31,778 ) (274,497 ) Total (203,498 ) (39,221 ) (31,778 ) (274,497 ) Total, net 139,500 53,435 (28,959 ) 163,976 |
Schedule of intangible assets with finite useful lives, prospectively amortized on a straight-line basis | Useful life – 2020 (in years) Software 5 Licenses 5 to 10 years |
Schedule of main assumptions used in CGUs | Main premises: 2021 2020 Bases for determining recoverable value Values in use: cash flows Period of cash flow projections 5 years 5 years Perpetual growth rate 3.00% 3.00% Discount rate 11.16% 8.56% |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property and Equipment | |
Schedule of property and equipment | 12/31/2020 Additions Disposals/ Transfers Eyemobile Acquisition (1) 12/31/2021 Point of Sale (POS) terminals 1,416,636 338,201 (300,135 ) - 1,454,702 Computers and peripherals 201,358 36,766 296 46 238,466 Own properties 8,606 - - - 8,606 Furniture and fixtures 7,513 261 (264 ) 118 7,628 Land 2,766 - - - 2,766 Improvements in own properties 1,088 107 (55 ) 10 1,150 Leasehold improvements 6,203 - (36 ) - 6,167 Telecommunications equipment 1,862 - (1,145 ) 7 724 Provision for impairment (29,685 ) (6,143 ) 398 - (35,430 ) Total 1,616,347 369,192 (300,941 ) 181 1,684,779 12/31/2020 Additions Disposals/ Transfers Eyemobile Acquisition (1) 12/31/2021 Depreciation Point of Sale terminals (900,901 ) (289,270 ) 282,905 - (907,266 ) Depreciation Computers and peripherals (89,704 ) (44,041 ) 695 - (133,050 ) Depreciation of own properties (1,950 ) (345 ) - - (2,295 ) Depreciation of furniture and fixtures (2,890 ) (720 ) 223 - (3,387 ) Depreciation of improvements in own properties (565 ) (105 ) - - (670 ) Depreciation of leasehold improvements (5,715 ) (82 ) - - (5,797 ) Depreciation of telecommunications equipment (761 ) (16 ) 61 - (716 ) Total (1,002,486 ) (334,579 ) 283,884 - (1,053,181 ) Total, net 613,861 34,613 (17,057 ) 181 631,598 ( 1 12/31/2019 Additions Disposals/ (1) 12/31/2020 Point of Sale (POS) terminals 1,314,027 251,317 (148,708 ) 1,416,636 Computers and peripherals 203,590 56,249 (58,481 ) 201,358 Own properties 8,606 - - 8,606 Furniture and fixtures 7,873 2,600 (2,960 ) 7,513 Land 2,766 - - 2,766 Improvements in own properties 1,087 1 - 1,088 Leasehold improvements 6,472 - (269 ) 6,203 Telecommunications equipment 2,234 - (372 ) 1,862 Provision for impairment (37,475 ) (1,295 ) 9,085 (29,685 ) Total 1,509,180 308,872 (201,705 ) 1,616,347 12/31/2019 Additions Disposals/ (1) 12/31/2020 Depreciation Point of Sale terminals (732,906 ) (245,138 ) 77,143 (900,901 ) Depreciation Computers and peripherals (106,296 ) (30,874 ) 47,466 (89,704 ) Depreciation of own properties (1,606 ) (345 ) 1 (1,950 ) Depreciation of furniture and fixtures (4,136 ) (690 ) 1,936 (2,890 ) Depreciation of improvements in own properties (460 ) (103 ) (2 ) (565 ) Depreciation of leasehold improvements (5,512 ) (394 ) 191 (5,715 ) Depreciation of telecommunications equipment (1,027 ) (101 ) 367 (761 ) Total (851,943 ) (277,645 ) 127,102 (1,002,486 ) Total, net 657,237 31,227 (74,603 ) 613,861 (1) Include transfers from Property and Equipment to Inventory. |
Schedule of useful life adopted for each class of property, plant and equipment | Average useful life Annual depreciation rate Point of Sale (POS) terminals 3 years 33% Computers and peripherals 5 years 20% Own properties 25 years 4% Furniture and fixtures 10 years 10% Improvements in own properties 10 years 10% Leasehold improvements 4 years 25% Telecommunications equipment 5 years 20% |
Provision for tax, civil and _3
Provision for tax, civil and labor risks (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Provision for tax, civil and labor risks | |
Schedule of legal proceedings provision with probable losses | 12/31/2021 12/31/2020 Civil 2,895 1,872 Labor 12,118 9,553 Total 15,013 11,425 |
Schedule of contingency with possible losses | 12/31/2021 12/31/2020 Civil 52,137 64,184 Labor 26,382 24,215 Tax 812,700 875,087 Total 891,219 963,486 |
Schedule of judicial deposits | 12/31/2021 12/31/2020 Civil 1,389 592 Labor 17,788 15,625 Tax 1,017 1,002 Total 20,194 17,219 (1) Judicial deposits recognized in the balance sheet line "Other assets". |
Schedule of provision movement | 12/31/2021 12/31/2020 Civil Labor Civil Labor Opening balance 1,872 9,553 1,547 5,954 Additions 5,455 4,070 1,296 4,791 Reversals/payments (4,431 ) (1,506 ) (971 ) (1,192 ) Closing balance 2,896 12,117 1,872 9,553 |
Income Tax and social contrib_3
Income Tax and social contribution and Other Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax and social contribution and Other Taxes | |
Schedule of reconciliation of the income tax and social contribution expense | 12/31/2021 12/31/2020 12/31/2019 Net income before taxes 563,008 496,187 1,099,861 Statutory rate 34% 34% 34% Expected income tax and social contribution, calculated with statutory rate (191,423 ) (168,704 ) (373,953 ) Permanent additions Non-deductible expenses (483 ) (604 ) (1,559 ) Non-deductible management’ benefits (3,476 ) (2,256 ) (2,591 ) Others - (3,010 ) - Permanent exclusions Donations - 3,691 11,296 Tax incentive - Hunger Prevention Program 952 1,264 1,293 Goodwill amortization - 23,532 70,673 Dividends (interest on capital) 101,320 - - Other - - 15,660 Additions (reversal) of income taxes and social contribution temporary differences Additions (reversal) of income taxes and social contribution temporary differences 6,026 10,913 (26,648 ) Income tax in profit or loss for the year (87,084 ) (135,174 ) (305,829 ) Effective tax rate 15% 27% 28% Current (36,551 ) (127,984 ) (330,012 ) Deferred (50,533 ) (7,190 ) 24,183 |
Schedule of deferred tax assets | Breakdown of deferred tax assets 12/31/2021 12/31/2020 Provision for tax, civil and labor risks 5,105 3,884 Provision for investments losses - 80 Provision for personal bonuses 21,849 23,144 Provision for other expenses (1) 46,029 37,249 IFRS 16 adjustments 7,969 6,112 Provisions for expected credit losses 2,329 3,390 Tax credit - spin-off (2) 338,753 - Total 422,034 73,859 |
Schedule of estimate of tax credit realization | Estimate of tax credit realization 12/31/2021 Consolidated 2022 152,173 2023 90,266 2024 79,962 2025 79,707 2026 to 2030 19,926 Total 422,034 |
Schedule of deferred tax liabilities | Breakdown of deferred tax liabilities 12/31/2021 12/31/2020 Other temporary differences 3,345 7,876 Total 3,345 7,876 |
Schedule of income taxes payables and other tax payables | 12/31/2021 12/31/2020 Taxes on revenue (PIS and COFINS) 17,547 9,552 Income taxes 6,534 22,276 Withholding income tax (IRRF) 1,724 3,022 Tax on services (ISS) 4,902 6,560 Other taxes 269 310 Total 30,976 41,720 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Parties | |
Schedule of related party transactions | Assets (liabilities) December 31, 2021 Assets (liabilities) December 31, 2020 Assets. 8,463,312 6,220,626 Cash and cash equivalents 372,151 242,391 Financial investments 839,427 384,027 Accounts receivable 171,779 17,573 On lending of accounts receivable 7,079,955 5,576,635 Liabilities (22,308,966 ) (18,495,855 ) Accounts payable (18,858,043 ) (17,474,617 ) other payables - 30,120 Loans and borrowings (3,450,923 ) (1,051,358 ) Total (13,845,654 ) (12,275,229 ) Revenue (expenses) December 31, 2021 Revenue (expenses) December 31, 2020 Finance income, net 32,693 18,434 Revenue from services (1) 1,038,017 623,500 Selling, General and Administrative expenses (22,959 ) (4,323 ) Total 1,047,751 637,611 (1) This line includes the amounts recognized as revenue from contractual remuneration arising from the contract signed with Santander Brazil in the first semester of 2021. See note 13. |
Schedule of compensation of key management personnel | 12/31/2021 12/31/2020 12/31/2020 Fixed compensation 8,123 9,960 7,033 Variable compensation 6,379 2,204 3,032 Total short-term benefits 14,502 12,164 10,065 Variable compensation – Units 10,632 3,673 5,053 Variable compensation – Cash 4,253 1,469 2,021 Total long-term benefits 14,884 5,142 7,074 Total 29,386 17,306 17,139 |
Revenue from services and Cos_3
Revenue from services and Costs of Services (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from services and Costs of Services | |
Schedule of revenue from services | 12/31/2021 12/31/2020 12/31/2019 Merchant acquisition ( 1 1,116,268 1,095,243 1,300,759 Profit share 635,823 623,500 721,143 Contractual remuneration (2) 488,089 - - Processing services revenue and capture 205,086 149,606 84,985 POS sales (1) 28,900 59,012 30,792 Recharges sales 9,708 11,189 6,267 Other 33,979 36,954 66,043 Taxes on services (166,724 ) (173,485 ) (149,311 ) Subtotal 2,351,129 1,802,019 2,060,678 POS rental (1) 553,181 571,323 663,597 Taxes on services (51,169 ) (52,847 ) (61,382 ) Subtotal 502,012 518,476 602,215 Net revenue 2,853,141 2,320,495 2,662,893 Point in time, net of tax 2,351,129 1,802,019 2,060,678 Over time, net of tax 502,012 518,476 602,215 Net revenue 2,853,141 2,320,495 2,662,893 (1) (2) The amount recognized in this line as revenue from contractual remuneration arising from the contract signed between Santander Brazil and Getnet in the first semester of 2021. |
Schedule of costs of services | 12/31/2021 12/31/2020 12/31/2019 Fees and commissions (903,777 ) (582,919 ) (471,983 ) Cost of POS sales and other fees (106,125 ) (171,199 ) (84,602 ) Depreciation / amortization (279,522 ) (245,138 ) (218,093 ) Personnel, technology, system and other (469,434 ) (426,936 ) (311,833 ) Total (1,758,858 ) (1,426,192 ) ( ) |
Expenses by Nature (Tables)
Expenses by Nature (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Expenses by Nature | |
Schedule of selling, general and administrative expenses | 12/31/2021 12/31/2020 12/31/2019 Personnel expenses and social charges (187,329 ) (160,309 ) (222,367 ) Technical support (99,229 ) (63,517 ) (45,301 ) Depreciation and amortization (78,800 ) (66,695 ) (59,542 ) Advertising (33,049 ) (23,640 ) (50,745 ) Provisions net of reversal (16,096 ) (15,754 ) (14,927 ) Technology and systems (5,378 ) (2,844 ) (10,284 ) Facilities and materials (3,565 ) (3,304 ) (8,267 ) Communications (1,159 ) (1,273 ) (4,424 ) Surveillance and cash transport services (497 ) (410 ) (336 ) Taxes except income tax (271 ) (335 ) (257 ) Other administrative expenses (18,908 ) (10,459 ) (24,218 ) Total (444,281 ) (348,540 ) (440,668 ) |
Finance Income, net (Tables)
Finance Income, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Finance Income, net | |
Schedule of financing income and expense | 12/31/2021 12/31/2020 12/31/2019 Finance income: Income from short-term investments 61,177 41,437 95,798 Other (1) 81,526 14,712 1,584 Total 142,703 56,149 97,382 Finance costs: Interest and charges on borrowings (110,715 ) (28,552 ) (12,140 ) Other finance costs (7,086 ) (3,023 ) (14,323 ) Interest expenses incurred on lease liabilities (2,057 ) (1,914 ) (865 ) Total (119,858 ) (33,489 ) (27,328 ) Foreign exchange losses, net (14,316 ) (16,467 ) 3,772 Total 8,529 6,193 73,826 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per Share | |
Schedule of earnings per share | December 31, 2021 December 31, 2020 Net income for the year attributable to common shareholders ( 1 266,622 361,013 Weighted average number of common shares (in thousands of shares) 1,088,746 1,866,722 Basic and diluted earnings per share for profit attributable to common shareholders (in R$) 0.24 0.19 Net income for the year attributable to preferred shareholders ( 1 209,569 NA Weighted average number of preferred shares (in thousands of shares) 777,976 NA Basic and diluted earnings per share for profit attributable to preferred shareholders (in R$) 0.27 NA (1) Net income attributable to common and preferred shareholders is based on the allocation of total net income based on the respective weighted average number of shares adjusted to reflect a 10% higher allocation of profit per share for preferred shareholders compared to common shareholders in line with the 10% higher preference in dividend distribution. |
Items not affecting cash (Table
Items not affecting cash (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Items not affecting cash | |
Schedule of non-cash investing and financing activities | December 31, 2021 December 31, 2020 December 31, 2019 Additions and contractual changes (IFRS 16) 7,205 (2,731 ) 12,659 Tax credit – spin-off (1) 398,533 - - Dividends/interest on net equity declared and not yet paid 298,000 29,227 67.518 (1) Refers tax credit related the spin-off. See note 1 “The spin-off of Getnet from Banco Santander (Brasil) S.A.” for further details. |
General information (Details -
General information (Details - Textual) - BRL (R$) R$ in Thousands | Aug. 03, 2021 | Mar. 31, 2021 | Dec. 31, 2021 |
Eyemobile Tecnologia S.A. (“Eyemobile”) | |||
General information | |||
Percentage of voting equity interests acquired | 60.00% | ||
Cash paid for the acquisition | R$ 21500 | ||
Percentage of equity interests | 44.00% | ||
Equity interest in acquiree | R$ 11500 | ||
Increase in capital in acquiree | R$ 10000 | ||
Percentage of ownership interests increase | 16.00% | ||
Maximum amount of earn-out clause based on future performance | R$ 3500 | R$ 5500 | |
Period of earn-out clause based on future performance | 18 months | ||
Banco Santander (Brasil) S.A. | |||
General information | |||
Tax credit recognized due to contribution of tax basis received from related party | R$ 398533 |
Basis of preparation (Details)
Basis of preparation (Details) | 12 Months Ended | |
Dec. 31, 2021 | ||
Auttar H.U.T. Processamento de Dados Ltda. (“Auttar”) | ||
Disclosure of subsidiaries [line items] | ||
Equity interest % | 100.00% | |
Getnet Sociedade de Crédito Direto S.A (“SCD”) | ||
Disclosure of subsidiaries [line items] | ||
Equity interest % | 100.00% | |
Eyemobile Tecnologia S.A. (“Eyemobile”) | ||
Disclosure of subsidiaries [line items] | ||
Equity interest % | 60.00% | [1] |
[1] | On May 12, 2021, Getnet Adquirência e Serviços para Meios de Pagamentos S.A. entered into an investment and other agreements with Eyemobile, as consenting intervening party, establishing the terms of the negotiation for the purchase and sale of the shares representing Eyemobile's capital stock. The control acquisition was concluded on August 3, 2021, so that Getnet now holds 60% of Eyemobile's voting shares for the amount of R$19,415, corresponding to the equity value of the shares on the purchase date, plus the amount of the contribution of the shares paid up upon subscription. The Company's corporate purpose is to explore the development and licensing of customizable computer programs, the rental of office machines and equipment, and the specialized retail trade of computer equipment and supplies . |
Basis of preparation (Details 1
Basis of preparation (Details 1 - Textuals) - Eyemobile Tecnologia S.A. (“Eyemobile”) R$ in Thousands | Aug. 03, 2021BRL (R$) |
Disclosure of subsidiaries [line items] | |
Percentage of voting equity interests acquired | 60.00% |
Amount paid for the acquisition | R$ 19415 |
Financial Instruments (Details)
Financial Instruments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets, Current | ||
Financial assets, Amortized cost | R$ 56324856 | R$ 40832830 |
Fair value through other comprehensive income | 555,413 | 531,600 |
Total financial assets | 56,880,269 | 41,364,430 |
Financial liabilities, Current/Non-current | ||
Financial liabilities, Amortized cost | 55,363,568 | 40,188,567 |
Fair value through profit or loss | 0 | 0 |
Total financial liabilities | 55,363,568 | 40,188,567 |
Accounts payable | ||
Financial liabilities, Current/Non-current | ||
Financial liabilities, Amortized cost | 51,610,405 | 38,767,156 |
Fair value through profit or loss | 0 | 0 |
Total financial liabilities | 51,610,405 | 38,767,156 |
Loans and borrowings | ||
Financial liabilities, Current/Non-current | ||
Financial liabilities, Amortized cost | 3,489,858 | 1,091,157 |
Fair value through profit or loss | 0 | 0 |
Total financial liabilities | 3,489,858 | 1,091,157 |
Lease liabilities | ||
Financial liabilities, Current/Non-current | ||
Financial liabilities, Amortized cost | 26,315 | 23,049 |
Fair value through profit or loss | 0 | 0 |
Total financial liabilities | 26,315 | 23,049 |
Other liabilities | ||
Financial liabilities, Current/Non-current | ||
Financial liabilities, Amortized cost | 236,990 | 307,205 |
Fair value through profit or loss | 0 | 0 |
Total financial liabilities | 236,990 | 307,205 |
Cash and cash equivalents | ||
Financial assets, Current | ||
Financial assets, Amortized cost | 670,441 | 265,096 |
Fair value through other comprehensive income | 0 | 0 |
Total financial assets | 670,441 | 265,096 |
Financial investments | ||
Financial assets, Current | ||
Financial assets, Amortized cost | 875,240 | 393,783 |
Fair value through other comprehensive income | 555,413 | 531,600 |
Total financial assets | 1,430,653 | 925,383 |
Accounts receivable | ||
Financial assets, Current | ||
Financial assets, Amortized cost | 54,578,684 | 39,968,233 |
Fair value through other comprehensive income | 0 | 0 |
Total financial assets | 54,578,684 | 39,968,233 |
Other assets | ||
Financial assets, Current | ||
Financial assets, Amortized cost | 200,491 | 205,718 |
Fair value through other comprehensive income | 0 | 0 |
Total financial assets | R$ 200491 | R$ 205718 |
Financial Instruments (Details
Financial Instruments (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments | |||||
Cash | R$ 229 | R$ 41 | |||
Short-term bank deposits | 646,304 | 255,407 | |||
Foreign currency cash and investments abroad | [1] | 23,908 | 9,648 | ||
Total cash and cash equivalents | R$ 670441 | R$ 265096 | R$ 211702 | R$ 1793937 | |
[1] | Refers to highly liquid financial investments in U.S. Dollars. |
Financial Instruments (Detail_2
Financial Instruments (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial instruments | |||
Total financial investments | R$ 1430653 | R$ 925383 | |
Brazilian Treasury Bonds ("LFTs") | |||
Financial instruments | |||
Total financial investments | [1] | 555,413 | 531,600 |
Short-term investment | |||
Financial instruments | |||
Total financial investments | [2] | R$ 875240 | R$ 393783 |
[1] | Consists of investments in Brazilian Treasury Bonds ("LFTs") with an interest rate of 99.04 % of the Basic Interest Rate (SELIC – 9.25 % and 2.0 % for the year ended December 31, 202 1 and December 2020, respectively ) , invested to comply with certain requirements for authorized payment institutions as set forth by the BACEN regulation. This financial asset was classified at fair value through other comprehensive income. | ||
[2] | Refer to the amounts invested in the SBAC Investment Fund, remunerated at DI rate ( the Brazilian interbank deposit rate), where Getnet holds participation units. The underlying assets of the fund comprises substantially in public securities and repo with high liq uidity (Level 1 – Further details note 5.3). |
Financial Instruments (Detail_3
Financial Instruments (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable | ||||
Total accounts receivable | R$ 54578684 | R$ 39968233 | ||
Accounts receivable | ||||
Accounts receivable | ||||
Provision for expected credit losses | (61,732) | (58,324) | R$ 66564 | R$ 75109 |
Gross amount | Accounts receivable | ||||
Accounts receivable | ||||
Accounts receivable from card issuers | 54,131,057 | 39,610,114 | ||
Other accounts receivable from clients | 509,359 | 416,443 | ||
Provision for expected credit losses | (61,732) | (58,324) | ||
Total accounts receivable | R$ 54578684 | R$ 39968233 |
Financial Instruments (Detail_4
Financial Instruments (Details 4) - Accounts receivable - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movements in the provision for expected credit losses | |||
Opening balance | R$ 58324 | R$ 66564 | R$ 75109 |
Additions | 67,351 | 69,789 | 83,293 |
Reversals | (63,943) | (78,029) | (91,838) |
Closing balance | R$ 61732 | R$ 58324 | R$ 66564 |
Financial Instruments (Detail_5
Financial Instruments (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial Instruments | |||
Payment transactions | [1] | R$ 50980629 | R$ 38241934 |
Other financial liabilities | [2] | 629,776 | 525,222 |
Total | R$ 51610405 | R$ 38767156 | |
[1] | Refers mainly to payment transactions with Santander Brazil (related party) in the amount of R$ 18,858,043 on December 31, 2021 and R$ 17,474,617 on December 31, 2020 (further details note 11) and commercial establishments. | ||
[2] | Amounts to be paid as an interchange fee and amounts that are under analysis for approval of settlement. |
Financial Instruments (Detail_6
Financial Instruments (Details 6) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial liabilities | |||||
Total loans and borrowings | R$ 3489858 | R$ 1091157 | R$ 652545 | R$ 96570 | |
Financial liabilities at amortized cost | |||||
Financial liabilities | |||||
Total loans and borrowings | [1] | R$ 3489858 | R$ 1091157 | ||
[1] | Includes Brazilian real-denominated transactions with credit institutions resulting from loan and financing credit facilities and on lending in Brazil (BNDES/ FINAME). |
Financial Instruments (Detail_7
Financial Instruments (Details 7) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Financial liabilities | |||||
Total loans and borrowings | R$ 3489858 | R$ 1091157 | R$ 652545 | R$ 96570 | |
Working capital financing | |||||
Financial liabilities | |||||
Loans and borrowings, Rate | [1] | 110.63% | |||
Loans and borrowings, interest rate basis | [1],[2] | CDI | |||
Loans and borrowings, Maturity | [1] | 02/22 | |||
Total loans and borrowings | [1] | R$ 2993507 | 1,051,358 | ||
Working capital financing | |||||
Financial liabilities | |||||
Loans and borrowings, Rate | 9.16% | ||||
Loans and borrowings, interest rate basis | [2] | CDI | |||
Loans and borrowings, Maturity | 01/22 | ||||
Total loans and borrowings | R$ 457416 | 0 | |||
BNDES/ FINAME | |||||
Financial liabilities | |||||
Loans and borrowings, Rate | 3.75% | ||||
Loans and borrowings, interest rate basis | Long Term Interest Rate | ||||
Loans and borrowings, Maturity | - | ||||
Total loans and borrowings | R$ 0 | 2,957 | |||
Other financing | |||||
Financial liabilities | |||||
Loans and borrowings, Maturity | 05/24 - 02/25 | ||||
Total loans and borrowings | R$ 38935 | R$ 36842 | |||
Other financing | Minimum | |||||
Financial liabilities | |||||
Loans and borrowings, Rate | 11.11% | ||||
Other financing | Maximum | |||||
Financial liabilities | |||||
Loans and borrowings, Rate | 11.15% | ||||
[1] | Related to Santander Brazil transaction. See note 1 1 for further details. | ||||
[2] | CDI rate means the Brazilian interbank deposit ( Certificado de Depósito Interbancário ) rate, which is an average of interbank overnight rates in Brazil . Refer to note 1 9 for further details . |
Financial Instruments (Detail_8
Financial Instruments (Details 8) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Instruments | |||
Opening balance | R$ 1091157 | R$ 652545 | R$ 96570 |
Additions | 6,511,673 | 2,842,742 | 599,160 |
Principal payments | (4,164,474) | (2,399,622) | (50,054) |
Accrued interest | 110,715 | 28,552 | 12,140 |
Interest paid | (59,213) | (33,060) | (5,271) |
Closing balance | R$ 3489858 | R$ 1091157 | R$ 652545 |
Financial Instruments (Detail_9
Financial Instruments (Details 9) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments | ||||
Loans and borrowings from domestic financial institutions | R$ 3489858 | R$ 1091157 | R$ 652545 | R$ 96570 |
Up to 3 months | ||||
Financial Instruments | ||||
Loans and borrowings from domestic financial institutions | 3,454,903 | 1,058,034 | ||
3-12 months | ||||
Financial Instruments | ||||
Loans and borrowings from domestic financial institutions | 9,813 | 5,313 | ||
Over 12 months | ||||
Financial Instruments | ||||
Loans and borrowings from domestic financial institutions | R$ 25142 | R$ 27810 |
Financial Instruments (Detai_10
Financial Instruments (Details 10) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial assets | |||
Total financial assets, Book value | R$ 56880269 | R$ 41364430 | |
Total financial assets, Fair value | 56,880,269 | 41,364,430 | |
Financial liabilities | |||
Total financial liabilities, Book value | 55,363,568 | 40,188,567 | |
Total financial liabilities, Fair value | 55,363,568 | 40,188,567 | |
Level 1 | |||
Financial assets | |||
Total financial assets, Book value | 2,101,094 | 1,190,479 | |
Total financial assets, Fair value | 2,101,094 | 1,190,479 | |
Financial liabilities | |||
Total financial liabilities, Book value | 0 | 0 | |
Total financial liabilities, Fair value | 0 | 0 | |
Level 2 | |||
Financial assets | |||
Total financial assets, Book value | 54,779,175 | 40,173,951 | |
Total financial assets, Fair value | 54,779,175 | 40,173,951 | |
Financial liabilities | |||
Total financial liabilities, Book value | 55,363,568 | 40,188,567 | |
Total financial liabilities, Fair value | 55,363,568 | 40,188,567 | |
Accounts payable | |||
Financial liabilities | |||
Total financial liabilities, Book value | 51,610,405 | 38,767,156 | |
Total financial liabilities, Fair value | 51,610,405 | 38,767,156 | |
Accounts payable | Level 1 | |||
Financial liabilities | |||
Total financial liabilities, Book value | 0 | 0 | |
Total financial liabilities, Fair value | 0 | 0 | |
Accounts payable | Level 2 | |||
Financial liabilities | |||
Total financial liabilities, Book value | 51,610,405 | 38,767,156 | |
Total financial liabilities, Fair value | 51,610,405 | 38,767,156 | |
Loans and borrowings | |||
Financial liabilities | |||
Total financial liabilities, Book value | 3,489,858 | 1,091,157 | |
Total financial liabilities, Fair value | 3,489,858 | 1,091,157 | |
Loans and borrowings | Level 1 | |||
Financial liabilities | |||
Total financial liabilities, Book value | 0 | 0 | |
Total financial liabilities, Fair value | 0 | 0 | |
Loans and borrowings | Level 2 | |||
Financial liabilities | |||
Total financial liabilities, Book value | 3,489,858 | 1,091,157 | |
Total financial liabilities, Fair value | 3,489,858 | 1,091,157 | |
Lease liabilities | |||
Financial liabilities | |||
Total financial liabilities, Book value | 26,315 | 23,049 | |
Total financial liabilities, Fair value | 26,315 | 23,049 | |
Lease liabilities | Level 1 | |||
Financial liabilities | |||
Total financial liabilities, Book value | 0 | 0 | |
Total financial liabilities, Fair value | 0 | 0 | |
Lease liabilities | Level 2 | |||
Financial liabilities | |||
Total financial liabilities, Book value | 26,315 | 23,049 | |
Total financial liabilities, Fair value | 26,315 | 23,049 | |
Other liabilities | |||
Financial liabilities | |||
Total financial liabilities, Book value | [1] | 236,990 | 307,205 |
Total financial liabilities, Fair value | [1] | 236,990 | 307,205 |
Other liabilities | Level 1 | |||
Financial liabilities | |||
Total financial liabilities, Book value | [1] | 0 | 0 |
Total financial liabilities, Fair value | [1] | 0 | 0 |
Other liabilities | Level 2 | |||
Financial liabilities | |||
Total financial liabilities, Book value | [1] | 236,990 | 307,205 |
Total financial liabilities, Fair value | [1] | 236,990 | 307,205 |
Cash and cash equivalents | |||
Financial assets | |||
Total financial assets, Book value | 670,441 | 265,096 | |
Total financial assets, Fair value | 670,441 | 265,096 | |
Cash and cash equivalents | Level 1 | |||
Financial assets | |||
Total financial assets, Book value | 670,441 | 265,096 | |
Total financial assets, Fair value | 670,441 | 265,096 | |
Cash and cash equivalents | Level 2 | |||
Financial assets | |||
Total financial assets, Book value | 0 | 0 | |
Total financial assets, Fair value | 0 | 0 | |
Financial investments | |||
Financial assets | |||
Total financial assets, Book value | 1,430,653 | 925,383 | |
Total financial assets, Fair value | 1,430,653 | 925,383 | |
Financial investments | Level 1 | |||
Financial assets | |||
Total financial assets, Book value | 1,430,653 | 925,383 | |
Total financial assets, Fair value | 1,430,653 | 925,383 | |
Financial investments | Level 2 | |||
Financial assets | |||
Total financial assets, Book value | 0 | 0 | |
Total financial assets, Fair value | 0 | 0 | |
Accounts receivable | |||
Financial assets | |||
Total financial assets, Book value | 54,578,684 | 39,968,233 | |
Total financial assets, Fair value | 54,578,684 | 39,968,233 | |
Accounts receivable | Level 1 | |||
Financial assets | |||
Total financial assets, Book value | 0 | 0 | |
Total financial assets, Fair value | 0 | 0 | |
Accounts receivable | Level 2 | |||
Financial assets | |||
Total financial assets, Book value | 54,578,684 | 39,968,233 | |
Total financial assets, Fair value | 54,578,684 | 39,968,233 | |
Other assets | |||
Financial assets | |||
Total financial assets, Book value | [2] | 200,491 | 205,718 |
Total financial assets, Fair value | [2] | 200,491 | 205,718 |
Other assets | Level 1 | |||
Financial assets | |||
Total financial assets, Book value | [2] | 0 | 0 |
Total financial assets, Fair value | [2] | 0 | 0 |
Other assets | Level 2 | |||
Financial assets | |||
Total financial assets, Book value | [2] | 200,491 | 205,718 |
Total financial assets, Fair value | [2] | R$ 200491 | R$ 205718 |
[1] | The carrying values of O ther liabilities are measured at amortized cost . These amounts refer mainly to payables to suppliers . | ||
[2] | The carrying values of O ther assets are measured at amortized cost, less the provision for impairment and adjustment to present value, when applicable. These amounts refer mainly to judicial deposit, protection deposit of BACEN . |
Financial Instruments (Detai_11
Financial Instruments (Details 11) - Foreign currency risk - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments | ||
Net exposure | R$ 46271 | R$ 30395 |
Accounts payable | ||
Financial instruments | ||
Net exposure | 0 | 0 |
Cash and cash equivalents | ||
Financial instruments | ||
Net exposure | 23,951 | 9,688 |
Accounts receivable | ||
Financial instruments | ||
Net exposure | 22,181 | 20,707 |
Other assets | ||
Financial instruments | ||
Net exposure | R$ 139 | R$ 0 |
Financial Instruments (Detai_12
Financial Instruments (Details 12) - Foreign currency risk | 12 Months Ended | |
Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) | |
US dollar | ||
Financial instruments | ||
Translation rates | 5.5805 | 5.1967 |
SELIC | ||
Financial instruments | ||
Analysis rates | 9.15 | 1.9 |
Probable scenario +/-10% | ||
Financial instruments | ||
Net effect on profit or loss | R$ 4627000 | R$ 3039000 |
Possible scenario +/-25% | ||
Financial instruments | ||
Net effect on profit or loss | 11,568,000 | 7,599,000 |
Remote scenario +/-50% | ||
Financial instruments | ||
Net effect on profit or loss | R$ 23136000 | R$ 15197000 |
Financial Instruments (Detai_13
Financial Instruments (Details 13) - Interest rate risk - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments | ||
Net exposure | R$ 1837672 | R$ 53400 |
Loans and borrowings | ||
Financial instruments | ||
Net exposure | (3,450,483) | (1,051,358) |
Financial investments | ||
Financial instruments | ||
Net exposure | 1,430,566 | 925,383 |
Accounts receivable and other assets | ||
Financial instruments | ||
Net exposure | R$ 182245 | R$ 72575 |
Financial Instruments (Detai_14
Financial Instruments (Details 14) - Interest rate risk - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Probable scenario +/-10% | ||
Financial instruments | ||
Net effect on profit or loss | R$ 16815 | R$ 101 |
Possible scenario +/-25% | ||
Financial instruments | ||
Net effect on profit or loss | (42,037) | (254) |
Remote scenario +/-50% | ||
Financial instruments | ||
Net effect on profit or loss | R$ 84073 | R$ 507 |
Financial Instruments (Detai_15
Financial Instruments (Details 15 - Textuals) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Financial instruments | |||
Accounts payable | [1] | R$ 50980629 | R$ 38241934 |
Probable scenario +/-10% | |||
Financial instruments | |||
Percentage of reasonably possible increase (decrease) in associated risk variables | 10.00% | ||
Possible scenario +/-25% | |||
Financial instruments | |||
Percentage of reasonably possible increase (decrease) in associated risk variables | 25.00% | ||
Remote scenario +/-50% | |||
Financial instruments | |||
Percentage of reasonably possible increase (decrease) in associated risk variables | 50.00% | ||
Banco Santander (Brasil) S.A. | |||
Financial instruments | |||
Accounts payable | R$ 18858043 | R$ 17474617 | |
Brazilian Treasury Bonds ("LFTs") | Special System of Settlement and Custody ("SELIC") | |||
Financial instruments | |||
Interest rate | 99.04% | 99.04% | |
Interest rate basis | SELIC | SELIC | |
Interest rate adjustment | 9.25% | 2.00% | |
[1] | Refers mainly to payment transactions with Santander Brazil (related party) in the amount of R$ 18,858,043 on December 31, 2021 and R$ 17,474,617 on December 31, 2020 (further details note 11) and commercial establishments. |
Leases (Details)
Leases (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Right-of-use-asset | |||
Opening balance | R$ 21905 | R$ 30002 | R$ 21172 |
Additions and contractual changes | 7,205 | (2,731) | 12,659 |
Depreciation | (3,407) | (5,366) | (3,829) |
Balance at December 31 | 25,703 | 21,905 | 30,002 |
Lease liabilities | |||
Beginning balance | 23,049 | 30,629 | 22,842 |
Additions and contractual changes | 5,364 | (2,801) | 15,121 |
Payments | (4,155) | (6,693) | (8,199) |
Interest | 2,057 | 1,914 | 865 |
Balance at December 31 | R$ 26315 | R$ 23049 | R$ 30629 |
Leases (Details 1)
Leases (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | |||
Depreciation | R$ 3407 | R$ 5366 | R$ 3829 |
Interest expense | 2,057 | 1,914 | 865 |
Total | R$ 5464 | R$ 7280 | R$ 4694 |
Leases (Details 2 - Textual)
Leases (Details 2 - Textual) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | |||
Short-term contract expenses | R$ 0 | R$ 0 | R$ 294 |
Period of lease term of short-term leases | 12 months |
Intangible Assets (Details)
Intangible Assets (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of reconciliation of changes in goodwill [line items] | |||
Other intangible assets | R$ 196593 | R$ 163976 | R$ 139500 |
Total | 885,083 | 833,807 | |
Getnet Tecnologia Em Captura E Processamento De Transacoes H U A Ltda [Member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | 669,831 | 669,831 | |
Eyemobile Tecnologia S.A. (“Eyemobile”) | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | R$ 18659 | R$ 0 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net cash outflow on acquisition of Eyemobile | |||
Net consideration presented in the statement of cash flows | R$ 9260 | R$ 0 | R$ 0 |
Eyemobile Tecnologia S.A. (“Eyemobile”) | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Acquisition value paid in cash | 9,415 | ||
Paid-in capital at the time of subscription | 10,000 | ||
Contingent consideration | 5,500 | ||
Total acquisition value | 24,915 | ||
Total net book value | R$ 10426 | ||
Interest | 60.00% | ||
Acquired book value of net assets acquired on the acquisition date | R$ 6256 | ||
Goodwill to be allocated (a - b) | 18,659 | ||
Net cash outflow on acquisition of Eyemobile | |||
Consideration paid in cash | 9,415 | ||
Paid-in capital at the time of subscription | 10,000 | ||
Cash and cash equivalents acquired from Eyemobile | 10,155 | ||
Net consideration presented in the statement of cash flows | R$ 9260 |
Intangible Assets (Details 2)
Intangible Assets (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of detailed information about intangible assets [line items] | |||
Opening balance | R$ 163976 | R$ 139500 | |
Additions | 14,809 | 53,435 | |
Disposals/ Transfers | 17,203 | (28,959) | |
Eyemobile Acquisition | [1] | 605 | |
Balance as at | 196,593 | 163,976 | |
Acquisition cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Opening balance | 438,473 | 342,998 | |
Additions | 45,261 | 92,656 | |
Disposals/ Transfers | 17,203 | 2,819 | |
Eyemobile Acquisition | [1] | 605 | |
Balance as at | 501,542 | 438,473 | |
Accumulated amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Opening balance | (274,497) | (203,498) | |
Amortization additions | (30,452) | (39,221) | |
Disposals/ Transfers | 0 | (31,778) | |
Eyemobile Acquisition | 0 | ||
Balance as at | (304,949) | (274,497) | |
Software and license amortization | |||
Disclosure of detailed information about intangible assets [line items] | |||
Opening balance | (274,497) | (203,498) | |
Amortization additions | (30,452) | (39,221) | |
Disposals/ Transfers | 0 | (31,778) | |
Eyemobile Acquisition | 0 | ||
Balance as at | (304,949) | (274,497) | |
Software and software licenses | Acquisition cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Opening balance | 369,239 | 296,805 | |
Additions | 1,968 | 36,459 | |
Disposals/ Transfers | 26,799 | 35,975 | |
Eyemobile Acquisition | [1] | 605 | |
Balance as at | 398,611 | 369,239 | |
Systems in development | Acquisition cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Opening balance | 70,311 | 48,512 | |
Additions | 46,669 | 56,301 | |
Disposals/ Transfers | (9,596) | (34,502) | |
Eyemobile Acquisition | 0 | ||
Balance as at | 107,384 | 70,311 | |
Provision for impairment | Acquisition cost | |||
Disclosure of detailed information about intangible assets [line items] | |||
Opening balance | (1,077) | (2,319) | |
Additions | (3,376) | (104) | |
Disposals/ Transfers | 0 | 1,346 | |
Eyemobile Acquisition | 0 | ||
Balance as at | R$ 4453 | R$ 1077 | |
[1] | Consolidated opening balances referring to the acquisition of Eyemobile. |
Intangible Assets (Details 3)
Intangible Assets (Details 3) | 12 Months Ended |
Dec. 31, 2021 | |
Software | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life (in years) | 5 years |
Licenses | Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life (in years) | 5 years |
Licenses | Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life (in years) | 10 years |
Intangible Assets (Details 4)
Intangible Assets (Details 4) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets | ||
Period of cash flow projections | 5 years | 5 years |
Perpetual growth rate | 3.00% | 3.00% |
Discount rate | 11.16% | 8.56% |
Intangible Assets (Details 5 -
Intangible Assets (Details 5 - Textual) - BRL (R$) R$ in Thousands | Aug. 03, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about intangible assets [line items] | |||
Period of cash flow projections | 5 years | 5 years | |
Software | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life (in years) | 5 years | ||
Licenses | Bottom of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life (in years) | 5 years | ||
Licenses | Top of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful life (in years) | 10 years | ||
Eyemobile Tecnologia S.A. (“Eyemobile”) | |||
Disclosure of detailed information about intangible assets [line items] | |||
Percentage of voting equity interests acquired | 60.00% | ||
Amount paid for the acquisition | R$ 19415 | ||
Contingent consideration | 3,500 | R$ 5500 | |
Total consideration | R$ 24915 | ||
Acquired book value of net assets acquired on the acquisition date | 6,256 | ||
Goodwill generated | R$ 18659 | ||
Measurement period of purchase price allocation | 12 months |
Property and Equipment (Details
Property and Equipment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | |||
Property and Equipment | ||||
Beginning balance | R$ 613861 | R$ 657237 | ||
Additions | 34,613 | 31,227 | ||
Disposals/ Transfers | (17,057) | (74,603) | [1] | |
Eyemobile Acquisition | [2] | 181 | ||
Balance at December 31 | 631,598 | 613,861 | ||
Acquisition cost | ||||
Property and Equipment | ||||
Beginning balance | 1,616,347 | 1,509,180 | ||
Additions | 369,192 | 308,872 | ||
Disposals/ Transfers | (300,941) | (201,705) | [1] | |
Eyemobile Acquisition | [2] | 181 | ||
Balance at December 31 | 1,684,779 | 1,616,347 | ||
Depreciation | ||||
Property and Equipment | ||||
Beginning balance | (1,002,486) | (851,943) | ||
Depreciation additions | (334,579) | (277,645) | ||
Disposals/ Transfers | 283,884 | 127,102 | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | (1,053,181) | (1,002,486) | ||
Point of Sale (POS) terminals | Acquisition cost | ||||
Property and Equipment | ||||
Beginning balance | 1,416,636 | 1,314,027 | ||
Additions | 338,201 | 251,317 | ||
Disposals/ Transfers | (300,135) | (148,708) | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | 1,454,702 | 1,416,636 | ||
Point of Sale (POS) terminals | Depreciation | ||||
Property and Equipment | ||||
Beginning balance | (900,901) | (732,906) | ||
Depreciation additions | (289,270) | (245,138) | ||
Disposals/ Transfers | 282,905 | 77,143 | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | (907,266) | (900,901) | ||
Computers and peripherals | Acquisition cost | ||||
Property and Equipment | ||||
Beginning balance | 201,358 | 203,590 | ||
Additions | 36,766 | 56,249 | ||
Disposals/ Transfers | 296 | (58,481) | [1] | |
Eyemobile Acquisition | [2] | 46 | ||
Balance at December 31 | 238,466 | 201,358 | ||
Computers and peripherals | Depreciation | ||||
Property and Equipment | ||||
Beginning balance | (89,704) | (106,296) | ||
Depreciation additions | (44,041) | (30,874) | ||
Disposals/ Transfers | 695 | 47,466 | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | (133,050) | (89,704) | ||
Own properties | Acquisition cost | ||||
Property and Equipment | ||||
Beginning balance | 8,606 | 8,606 | ||
Additions | 0 | 0 | ||
Disposals/ Transfers | 0 | 0 | ||
Eyemobile Acquisition | 0 | |||
Balance at December 31 | 8,606 | 8,606 | ||
Own properties | Depreciation | ||||
Property and Equipment | ||||
Beginning balance | (1,950) | (1,606) | ||
Depreciation additions | (345) | (345) | ||
Disposals/ Transfers | 0 | 1 | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | (2,295) | (1,950) | ||
Furniture and fixtures | Acquisition cost | ||||
Property and Equipment | ||||
Beginning balance | 7,513 | 7,873 | ||
Additions | 261 | 2,600 | ||
Disposals/ Transfers | (264) | (2,960) | [1] | |
Eyemobile Acquisition | [2] | 118 | ||
Balance at December 31 | 7,628 | 7,513 | ||
Furniture and fixtures | Depreciation | ||||
Property and Equipment | ||||
Beginning balance | (2,890) | (4,136) | ||
Depreciation additions | (720) | (690) | ||
Disposals/ Transfers | 223 | 1,936 | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | (3,387) | (2,890) | ||
Land | Acquisition cost | ||||
Property and Equipment | ||||
Beginning balance | 2,766 | 2,766 | ||
Additions | 0 | 0 | ||
Disposals/ Transfers | 0 | 0 | ||
Eyemobile Acquisition | 0 | |||
Balance at December 31 | 2,766 | 2,766 | ||
Improvements in own properties | Acquisition cost | ||||
Property and Equipment | ||||
Beginning balance | 1,088 | 1,087 | ||
Additions | 107 | 1 | ||
Disposals/ Transfers | (55) | 0 | ||
Eyemobile Acquisition | [2] | 10 | ||
Balance at December 31 | 1,150 | 1,088 | ||
Improvements in own properties | Depreciation | ||||
Property and Equipment | ||||
Beginning balance | (565) | (460) | ||
Depreciation additions | (105) | (103) | ||
Disposals/ Transfers | 0 | (2) | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | (670) | (565) | ||
Leasehold improvements | Acquisition cost | ||||
Property and Equipment | ||||
Beginning balance | 6,203 | 6,472 | ||
Additions | 0 | 0 | ||
Disposals/ Transfers | (36) | (269) | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | 6,167 | 6,203 | ||
Leasehold improvements | Depreciation | ||||
Property and Equipment | ||||
Beginning balance | (5,715) | (5,512) | ||
Depreciation additions | (82) | (394) | ||
Disposals/ Transfers | 0 | 191 | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | (5,797) | (5,715) | ||
Telecommunications equipment | Acquisition cost | ||||
Property and Equipment | ||||
Beginning balance | 1,862 | 2,234 | ||
Additions | 0 | 0 | ||
Disposals/ Transfers | (1,145) | (372) | [1] | |
Eyemobile Acquisition | [2] | 7 | ||
Balance at December 31 | 724 | 1,862 | ||
Telecommunications equipment | Depreciation | ||||
Property and Equipment | ||||
Beginning balance | (761) | (1,027) | ||
Depreciation additions | (16) | (101) | ||
Disposals/ Transfers | 61 | 367 | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | (716) | (761) | ||
Provision for impairment | Acquisition cost | ||||
Property and Equipment | ||||
Beginning balance | (29,685) | (37,475) | ||
Additions | (6,143) | (1,295) | ||
Disposals/ Transfers | 398 | 9,085 | [1] | |
Eyemobile Acquisition | 0 | |||
Balance at December 31 | R$ 35430 | R$ 29685 | ||
[1] | Include transfers from Property and Equipment to Inventory. | |||
[2] | Consolidated opening balances referring to the acquisition of Eyemobile. |
Property and Equipment (Detai_2
Property and Equipment (Details 1) | 12 Months Ended |
Dec. 31, 2021 | |
Point of Sale (POS) terminals | |
Property and Equipment | |
Average useful life | 3 years |
Annual depreciation rate | 33.00% |
Computers and peripherals | |
Property and Equipment | |
Average useful life | 5 years |
Annual depreciation rate | 20.00% |
Own properties | |
Property and Equipment | |
Average useful life | 25 years |
Annual depreciation rate | 4.00% |
Furniture and fixtures | |
Property and Equipment | |
Average useful life | 10 years |
Annual depreciation rate | 10.00% |
Improvements in own properties | |
Property and Equipment | |
Average useful life | 10 years |
Annual depreciation rate | 10.00% |
Leasehold improvements | |
Property and Equipment | |
Average useful life | 4 years |
Annual depreciation rate | 25.00% |
Telecommunications equipment | |
Property and Equipment | |
Average useful life | 5 years |
Annual depreciation rate | 20.00% |
Property and Equipment (Detai_3
Property and Equipment (Details 2 - Textuals) | 12 Months Ended |
Dec. 31, 2021 | |
Point of Sale (POS) terminals | |
Property and Equipment | |
Average useful life | 3 years |
Provision for tax, civil and _4
Provision for tax, civil and labor risks (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Provision for risks | ||
Total probable losses | R$ 15013 | R$ 11425 |
Civil | ||
Provision for risks | ||
Total probable losses | 2,895 | 1,872 |
Labor | ||
Provision for risks | ||
Total probable losses | R$ 12118 | R$ 9553 |
Provision for tax, civil and _5
Provision for tax, civil and labor risks (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Provision for risks | ||
Total possible losses | R$ 891219 | R$ 963486 |
Civil | ||
Provision for risks | ||
Total possible losses | 52,137 | 64,184 |
Labor | ||
Provision for risks | ||
Total possible losses | 26,382 | 24,215 |
Tax | ||
Provision for risks | ||
Total possible losses | R$ 812700 | R$ 875087 |
Provision for tax, civil and _6
Provision for tax, civil and labor risks (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Provision for risks | ||
Total judicial deposits | R$ 20194 | R$ 17219 |
Civil | ||
Provision for risks | ||
Total judicial deposits | 1,389 | 592 |
Labor | ||
Provision for risks | ||
Total judicial deposits | 17,788 | 15,625 |
Tax | ||
Provision for risks | ||
Total judicial deposits | R$ 1017 | R$ 1002 |
Provision for tax, civil and _7
Provision for tax, civil and labor risks (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Civil | ||
Provision for risks | ||
Opening balance | R$ 1872 | R$ 1547 |
Additions | 5,455 | 1,296 |
Reversals/payments | (4,431) | (971) |
Closing balance | 2,896 | 1,872 |
Labor | ||
Provision for risks | ||
Opening balance | 9,553 | 5,954 |
Additions | 4,070 | 4,791 |
Reversals/payments | (1,506) | (1,192) |
Closing balance | R$ 12117 | R$ 9553 |
Provision for tax, civil and _8
Provision for tax, civil and labor risks (Details 4 - Textuals) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2021BRL (R$) | Dec. 31, 2020BRL (R$) | |
Provision for risks | ||
Possible losses | R$ 891219 | R$ 963486 |
Contingent assets | R$ 0 | 0 |
Tax on services | ||
Provision for risks | ||
Number of lawsuits | 3 | |
Possible losses | R$ 74735 | |
Tax - Income taxes and social contributions | ||
Provision for risks | ||
Possible losses | R$ 812700 | R$ 875087 |
Income Tax and social contrib_4
Income Tax and social contribution and Other Taxes (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax and social contribution and Other Taxes | |||
Net income before taxes | R$ 563008 | R$ 496187 | R$ 1099861 |
Statutory rate | 34.00% | 34.00% | 34.00% |
Expected income tax and social contribution, calculated with statutory rate | R$ 191423 | R$ 168704 | R$ 373953 |
Permanent additions | |||
Non-deductible expenses | (483) | (604) | (1,559) |
Non-deductible management’ benefits | (3,476) | (2,256) | (2,591) |
Others | 0 | (3,010) | 0 |
Permanent exclusions | |||
Donations | 0 | 3,691 | 11,296 |
Tax incentive - Hunger Prevention Program | 952 | 1,264 | 1,293 |
Goodwill amortization | 0 | 23,532 | 70,673 |
Dividends (interest on capital) | 101,320 | 0 | 0 |
Other | 0 | 0 | 15,660 |
Additions (reversal) of income taxes and social contribution temporary differences | |||
Additions (reversal) of income taxes and social contribution temporary differences | R$ 6026 | R$ 10913 | R$ 26648 |
Effective tax rate | 15.00% | 27.00% | 28.00% |
Income tax in profit or loss for the year | R$ 87084 | R$ 135174 | R$ 305829 |
Current | (36,551) | (127,984) | (330,012) |
Deferred | R$ 50533 | R$ 7190 | R$ 24183 |
Income Tax and social contrib_5
Income Tax and social contribution and Other Taxes (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax and social contribution and Other Taxes | |||
Provision for tax, civil and labor risks | R$ 5105 | R$ 3884 | |
Provision for investments losses | 0 | 80 | |
Provision for personal bonuses | 21,849 | 23,144 | |
Provision for other expenses | [1] | 46,029 | 37,249 |
IFRS 16 adjustments | 7,969 | 6,112 | |
Provisions for expected credit losses | 2,329 | 3,390 | |
Tax credit - spin-off | [2] | 338,753 | 0 |
Total | R$ 422034 | R$ 73859 | |
[1] | Refers substantially to accruals related to accounts payable and transfers costs to debit and credit cards brands. | ||
[2] | Refers tax credit related the spin-off. See note 1 “The spin-off of Getnet from Banco Santander (Brasil) S.A.” for further details. |
Income Tax and social contrib_6
Income Tax and social contribution and Other Taxes (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax and social contribution and other Taxes | ||
Total | R$ 422034 | R$ 73859 |
2022 | ||
Income Tax and social contribution and other Taxes | ||
Total | 152,173 | |
2023 | ||
Income Tax and social contribution and other Taxes | ||
Total | 90,266 | |
2024 | ||
Income Tax and social contribution and other Taxes | ||
Total | 79,962 | |
2025 | ||
Income Tax and social contribution and other Taxes | ||
Total | 79,707 | |
2026 to 2030 | ||
Income Tax and social contribution and other Taxes | ||
Total | R$ 19926 |
Income Tax and social contrib_7
Income Tax and social contribution and Other Taxes (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax and social contribution and Other Taxes | ||
Other temporary differences | R$ 3345 | R$ 7876 |
Total | R$ 3345 | R$ 7876 |
Income Tax and social contrib_8
Income Tax and social contribution and Other Taxes (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax and social contribution and Other Taxes | ||
Taxes on revenue (PIS and COFINS) | R$ 17547 | R$ 9552 |
Income taxes | 6,534 | 22,276 |
Withholding income tax (IRRF) | 1,724 | 3,022 |
Tax on services (ISS) | 4,902 | 6,560 |
Other taxes | 269 | 310 |
Total | R$ 30976 | R$ 41720 |
Income Tax and social contrib_9
Income Tax and social contribution and Other Taxes (Details 5 - Textuals) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax and social contribution and other Taxes | |
Applicable tax rate, Corporate income tax | 15.00% |
Applicable tax rate, Surtax for income tax | 10.00% |
Applicable tax rate, Social contribution tax | 9.00% |
Brazil | |
Income Tax and social contribution and other Taxes | |
Maximum percentage of taxable profit which loss carryforward can be used to offset | 30.00% |
Related Parties (Details)
Related Parties (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Assets (liabilities) | |||||
TOTAL ASSETS | R$ 59034821 | R$ 43021698 | |||
Cash and cash equivalents | 670,441 | 265,096 | R$ 211702 | R$ 1793937 | |
Accounts payable | [1] | (50,980,629) | (38,241,934) | ||
other payables | [2] | (629,776) | (525,222) | ||
Loans and borrowings | (3,489,858) | (1,091,157) | (652,545) | R$ 96570 | |
Revenue (expenses) | |||||
Finance income, net | 8,529 | 6,193 | 73,826 | ||
Selling, General and Administrative expenses | (444,281) | (348,540) | R$ 440668 | ||
Banco Santander (Brasil) S.A. | |||||
Assets (liabilities) | |||||
TOTAL ASSETS | 8,463,312 | 6,220,626 | |||
Cash and cash equivalents | 372,151 | 242,391 | |||
Financial investments | 839,427 | 384,027 | |||
Accounts receivable | 171,779 | 17,573 | |||
On lending of accounts receivable | 7,079,955 | 5,576,635 | |||
Liabilities | (22,308,966) | (18,495,855) | |||
Accounts payable | (18,858,043) | (17,474,617) | |||
other payables | 0 | 30,120 | |||
Loans and borrowings | (3,450,923) | (1,051,358) | |||
Total | (13,845,654) | (12,275,229) | |||
Revenue (expenses) | |||||
Finance income, net | 32,693 | 18,434 | |||
Revenue from services | [3] | 1,038,017 | 623,500 | ||
Selling, General and Administrative expenses | (22,959) | (4,323) | |||
Total | R$ 1047751 | R$ 637611 | |||
[1] | Refers mainly to payment transactions with Santander Brazil (related party) in the amount of R$ 18,858,043 on December 31, 2021 and R$ 17,474,617 on December 31, 2020 (further details note 11) and commercial establishments. | ||||
[2] | Amounts to be paid as an interchange fee and amounts that are under analysis for approval of settlement. | ||||
[3] | This line includes the amounts recognized as revenue from contractual remuneration arising from the contract signed with Santander Brazil in the first semester of 2021. See note 13. |
Related Parties (Details 1)
Related Parties (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Parties | |||
Total short-term benefits | R$ 14502 | R$ 12164 | R$ 10065 |
Total long-term benefits | 14,884 | 5,142 | 7,074 |
Total | 29,386 | 17,306 | 17,139 |
Variable compensation - Units | |||
Related Parties | |||
Total long-term benefits | 10,632 | 3,673 | 5,053 |
Variable compensation - Cash | |||
Related Parties | |||
Total long-term benefits | 4,253 | 1,469 | 2,021 |
Fixed compensation | |||
Related Parties | |||
Total short-term benefits | 8,123 | 9,960 | 7,033 |
Variable compensation | |||
Related Parties | |||
Total short-term benefits | R$ 6379 | R$ 2204 | R$ 3032 |
Related Parties (Details 2 - Te
Related Parties (Details 2 - Textuals) - BRL (R$) R$ in Thousands | Feb. 24, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Parties | ||||
Interest on equity payable to the controlling shareholders | R$ 178697 | |||
Key management personnel compensation | 29,386 | R$ 17306 | R$ 17139 | |
Expenses recognized in the profit or loss statement | R$ 21263 | R$ 7346 | R$ 10106 | |
Variable compensation - Units | ||||
Related Parties | ||||
Percentage of retained bonus | 50.00% | |||
Variable compensation - Cash | ||||
Related Parties | ||||
Percentage of retained bonus | 50.00% | |||
Percentage of retained bonus paid in cash after closing of fiscal year of acquisition | 60.00% | |||
Percentage of remaining retained bonus paid in annual installments | 40.00% | |||
Executive key management | ||||
Related Parties | ||||
Key management personnel compensation | R$ 23500 |
Share Capital and Reserves (Det
Share Capital and Reserves (Details - Textual) - BRL (R$) R$ / shares in Units, R$ in Thousands | Feb. 24, 2021 | Apr. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 29, 2020 |
Disclosure of classes of share capital [line items] | |||||
Capital increase | R$ 1422496 | R$ 0 | |||
Share capital | R$ 1422496 | 1,422,496 | R$ 1189503 | ||
Conversion of common shares into preferred shares | 0 | ||||
Percentage of higher value of dividends distribution to preferred shareholders than common shareholders | 10.00% | ||||
Banco Santander (Brasil) S.A. | |||||
Disclosure of classes of share capital [line items] | |||||
Stock split ratio | one to 26.83421551 | ||||
Share capital | |||||
Disclosure of classes of share capital [line items] | |||||
Capital increase | R$ 232993 | R$ 232993 | |||
Number of shares outstanding | 1,866,722,202 | 1,866,722,202 | 1,866,722,202 | ||
Par value per share | R$ 0 | ||||
Conversion of common shares into preferred shares | 916,003,725 | ||||
Number of shares authorised | 5,000,000,000 | ||||
Share capital | Common shareholders | |||||
Disclosure of classes of share capital [line items] | |||||
Number of shares issued | 69,565,000 | ||||
Number of shares outstanding | 950,718,477 | 950,718,477 | |||
Share capital | Preferred shareholders | |||||
Disclosure of classes of share capital [line items] | |||||
Number of shares outstanding | 916,003,725 | 916,003,725 | |||
Percentage of higher value of dividends distribution to preferred shareholders than common shareholders | 10.00% |
Share Capital and Reserves (D_2
Share Capital and Reserves (Details 1 - Textual) - BRL (R$) R$ in Thousands | Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of classes of share capital [line items] | |||||
Minimum percentage of net income to be allocated to dividends as per bylaw of reporting entity | 25.00% | ||||
Distribution of dividends and Interest on capital | R$ 298000 | R$ 829464 | R$ 139022 | ||
Banco Santander (Brasil) S.A. | |||||
Disclosure of classes of share capital [line items] | |||||
Tax credit recognized due to contribution of tax basis received from related party | R$ 398533 | ||||
Legal reserve | |||||
Disclosure of classes of share capital [line items] | |||||
Percentage of reserve allocation to net income | 5.00% | ||||
Threshold percentage limit of capital for legal reserve to be maintained | 20.00% | ||||
Distribution of dividends and Interest on capital | R$ 0 | 0 | 0 | ||
Profit retention reserve | |||||
Disclosure of classes of share capital [line items] | |||||
Percentage of statutory reserve | 50.00% | ||||
Reserve for dividend equalization | |||||
Disclosure of classes of share capital [line items] | |||||
Percentage of statutory reserve | 50.00% | ||||
Statutory reserve | |||||
Disclosure of classes of share capital [line items] | |||||
Tax credit recognized due to contribution of tax basis received from related party | R$ 398533 | ||||
Distribution of dividends and Interest on capital | R$ 211175 | R$ 760361 | R$ 0 |
Revenue from services and Cos_4
Revenue from services and Costs of Services (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenue from services and Costs of Services | ||||
Merchant acquisition | [1] | R$ 1116268 | R$ 1095243 | R$ 1300759 |
Profit share | 635,823 | 623,500 | 721,143 | |
Contractual remuneration | [2] | 488,089 | 0 | 0 |
Processing services revenue and capture | 205,086 | 149,606 | 84,985 | |
POS sales | [1] | 28,900 | 59,012 | 30,792 |
Recharges sales | 9,708 | 11,189 | 6,267 | |
Other | 33,979 | 36,954 | 66,043 | |
Taxes on services | (166,724) | (173,485) | (149,311) | |
Subtotal | 2,351,129 | 1,802,019 | 2,060,678 | |
POS rental | [1] | 553,181 | 571,323 | 663,597 |
Taxes on services | (51,169) | (52,847) | (61,382) | |
Subtotal | 502,012 | 518,476 | 602,215 | |
Net revenue | 2,853,141 | 2,320,495 | 2,662,893 | |
Point in time, net of tax | 2,351,129 | 1,802,019 | 2,060,678 | |
Over time, net of tax | 502,012 | 518,476 | 602,215 | |
Net revenue | R$ 2853141 | R$ 2320495 | R$ 2662893 | |
[1] | This item contains discounts related to POS sales incentive, unconditional discounts and other discounts granted. | |||
[2] | The amount recognized in this line as revenue from contractual remuneration arising from the contract signed between Santander Brazil and Getnet in the first semester of 2021. |
Revenue from services and Cos_5
Revenue from services and Costs of Services (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from services and Costs of Services | |||
Fees and commissions | R$ 903777 | R$ 582919 | R$ 471983 |
Cost of POS sales and other fees | (106,125) | (171,199) | (84,602) |
Depreciation / amortization | (279,522) | (245,138) | (218,093) |
Personnel, technology, system and other | (469,434) | (426,936) | (311,833) |
Total | R$ 1758858 | R$ 1426192 | R$ 1086511 |
Expenses by Nature (Details)
Expenses by Nature (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Selling, General and Administrative expenses | |||
Depreciation and amortization | R$ 279522 | R$ 245138 | R$ 218093 |
Total | (444,281) | (348,540) | (440,668) |
Selling, General and Administrative expenses | |||
Selling, General and Administrative expenses | |||
Personnel expenses and social charges | (187,329) | (160,309) | (222,367) |
Technical support | (99,229) | (63,517) | (45,301) |
Depreciation and amortization | (78,800) | (66,695) | (59,542) |
Advertising | (33,049) | (23,640) | (50,745) |
Provisions net of reversal | (16,096) | (15,754) | (14,927) |
Technology and systems | (5,378) | (2,844) | (10,284) |
Facilities and materials | (3,565) | (3,304) | (8,267) |
Communications | (1,159) | (1,273) | (4,424) |
Surveillance and cash transport services | (497) | (410) | (336) |
Taxes except income tax | (271) | (335) | (257) |
Other administrative expenses | R$ 18908 | R$ 10459 | R$ 24218 |
Expenses by Nature (Details 1 -
Expenses by Nature (Details 1 - Textual) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses by Nature | |||
Chargeback and refund expenses | R$ 33.4 | R$ 37.7 | R$ 47.0 |
Finance Income, net (Details)
Finance Income, net (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Finance income: | ||||
Income from short-term investments | R$ 61177 | R$ 41437 | R$ 95798 | |
Other | [1] | 81,526 | 14,712 | 1,584 |
Total | 142,703 | 56,149 | 97,382 | |
Finance costs: | ||||
Interest and charges on borrowings | (110,715) | (28,552) | (12,140) | |
Other finance costs | (7,086) | (3,023) | (14,323) | |
Interest expenses incurred on lease liabilities | (2,057) | (1,914) | (865) | |
Total | (119,858) | (33,489) | (27,328) | |
Foreign exchange losses, net | (14,316) | (16,467) | 3,772 | |
Total | R$ 8529 | R$ 6193 | R$ 73826 | |
[1] | The increase in the line of "Other" occurred due to the beginning of the prepayment transactions of amounts payable to commercial establishments, carried out by Getnet, which intensified at the end of the year due to the operation carried out by Getnet between SCD. |
Earnings per Share (Details)
Earnings per Share (Details) - BRL (R$) R$ / shares in Units, shares in Thousands, R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Earnings per Share | ||||
Net income for the year attributable to common shareholders | [1] | R$ 266622 | R$ 361013 | |
Weighted average number of common shares (in thousands of shares) | 1,088,746 | 1,866,722 | ||
Basic and diluted earnings per share for profit attributable to common shareholders (in R$) | R$ 0.24 | R$ 0.19 | R$ 0.43 | |
Net income for the year attributable to preferred shareholders | [1] | R$ 209569 | ||
Weighted average number of preferred shares (in thousands of shares) | 777,976 | |||
Basic and diluted earnings per share for profit attributable to preferred shareholders (in R$) | R$ 0.27 | |||
[1] | Net income attributable to common and preferred shareholders is based on the allocation of total net income based on the respective weighted average number of shares adjusted to reflect a 10% higher allocation of profit per share for preferred shareholders compared to common shareholders in line with the 10% higher preference in dividend distribution. |
Earnings per Share (Details 1 -
Earnings per Share (Details 1 - Textual) | 12 Months Ended |
Dec. 31, 2021shares | |
Earnings per Share | |
Potential dilutive rights for basic earnings per share | 0 |
Percentage of higher value of dividends distribution to preferred shareholders than common shareholders | 10.00% |
Percentage of higher allocation of profit per share for preferred shareholders compared to common shareholders | 10.00% |
Percentage of higher preference in dividend distribution | 10.00% |
Disclosure - Items not affectin
Disclosure - Items not affecting cash (Details) - BRL (R$) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Items not affecting cash | ||||
Additions and contractual changes (IFRS 16) | R$ 7205000 | R$ 2731000 | R$ 12659000 | |
Tax credit – spin-off | [1] | 398,533,000 | 0 | 0 |
Dividends/interest on net equity declared and not yet paid | R$ 298000000 | R$ 29227000 | R$ 67518 | |
[1] | Refers tax credit related the spin-off. See note 1 “The spin-off of Getnet from Banco Santander (Brasil) S.A.” for further details. |