Investor Presentaiton
The details of the impacts of the operation are shown in the following table:
Impairment of investment
Carrying amount of investment
(-) Estimated revenue from the sale
Provision for loss
Deferred income tax and social contribution
Effect on the result, net
(kk) Acquisition of shares of CCR S.A. (CCR)
Value
927
100
(827)
281
(546)
In November 2021, the Company acquired the equivalent of 5.8% of the
total capital of CCR. In compliance with accounting rules, this acquisition is
now recognized at fair value, as a financial instrument, in accordance with
CPC 48/IFRS 9 - Financial instruments.
(II) Derivative financial instruments - Put option
In 2018, the Company acquired a minority interest of 15% in the combined
long steel business of ArcelorMittal Brasil S.A. (AMB). In compliance with
accounting rules, the investment was recognized as a financial instrument
measured at fair value through profit or loss, in accordance with CPC 48/
IFRS 9 Financial instruments. As a result of the terms established in the
contract, this financial instrument was reclassified to short-term in the last
quarter of 2021. The change in the fair value of this operation in the year
ended December 31, 2021 resulted in a gain of R$ 4,452 (December 31,
2021). In December 2020, a loss of R$ 403 was recorded under Financial
result, net - Note 31. The gain recorded in 2021 is justified by the better
results obtained in the long steel operation of AMB.
(mm) Start of the cement factory project at Cementos Artigas
S.A. (Artigas) - VCSA
Artigas, a subsidiary of the subsidiary VCSA, started a project to unify its indus-
trial activities in Uruguay. The initiative involves the integration of its industrial
facilities, until then divided between a mill and a distribution center located in
Montevideo and the main plant in the city of Minas. The project consists of the
relocation of the current grinding operations and cement distribution center
from the Montevideo plant to the Minas plant, resulting in a unified production
line that is much more efficient and sustainable. In addition, as a result of this
unification, a new vertical cement mill, a modern silo and a distribution center
will be installed at the plant. Artigas will invest approximately USD 40 million in
this project, which is expected to start operating in 2022. As at December 31,
2021, the total amount of investments made was USD 17.2 million (R$ 96).
(nn) Effects of the pandemic caused by the novel Coronavirus
(COVID-19)
Given the emergence of the pandemic related to the novel Coronavirus, which
has caused widespread impacts on public health and the economy of Brazil and
the rest of the world, the Company has been taking preventive and risk mitiga-
tion measures according to the guidelines established by national and interna-
tional health authorities, aiming to minimize impacts on the health and safety
of its employees, family, partners and communities, as well as the continuity of
all its operations. These measures are in accordance with the laws in force in
the countries in which the Company operates and its internal regulations.
The extent of the impacts of COVID-19 will depend on the duration of
the pandemic, possible restrictions imposed by governments, and other
possible developments in the countries in which the Company and its sub-
sidiaries operate.
The Company and its subsidiaries constantly evaluate and implement action
plans together with customers, suppliers, and other stakeholders involved,
according to the current scenario and the best possible projections.
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