Investor Presentaiton
Fair value measured
12/31/2020
based on
Prices
quoted in
Valuation
supported
by
an active
market
Note
(Level 1)
observable
prices
(Level 2)
Fair value
Assets
Cash and cash equivalents
9
4,418
5,365
Financial investments
10
1,279
4,419
Derivative financial instruments (i)
6.1.1 (a)
2,166
9,783
5,698
2,166
Derivative financial instruments -
put option
Financial instruments - shares
13
252
2,590
252
2,590
5,697
14,792
20,489
Liabilities
Borrowing (i)
20
16,633
13,377
30,010
Derivative financial instruments (i)
To rent
6.1.1 (a)
2,923
2,923
21
858
858
Confirming payables
2,380
2,380
19,538
36,171
16,633
(i) The fair value of these financial instruments takes into account the credit risk of the
Company and its subsidiaries, and the value of the change in the fair value of the fi-
nancial liability that is attributable to changes in credit risk is recorded in equity in
other comprehensive income. If the classification of credit risk in other comprehensive
income creates or increases the accounting mismatch in the result, the entity must
present all gains or losses in the income for the year. The accumulated amount of
changes in credit risk remains in other comprehensive income until the settlement
of the financial instrument, when they are reclassified to retained earnings, without
affecting the income.
6.1.3. Sensitivity analysis
The main risk factors affecting the pricing of cash and cash equivalents,
financial investments, loans and financing and derivative financial instru-
ments are exposed to the fluctuation in the US Dollar, Euro, Turkish Lira,
New Peruvian Sun, Argentine Peso and Bolivian interest rates, CDI, IPCA,
TJLP, LIBOR, US Dollar coupon, commodity prices and electricity purcha-
se and sale contracts. The scenarios for these factors are prepared using
both market sources and specialized sources of information, in line with the
Company's governance.
The scenarios as at December 31, 2021 are described below:
Scenario I - Considers a shock to the market curves and quotations at
December 31, 2021, according to the base scenario defined by manage-
ment as at March 31, 2022;
-
Scenario II Considers a shock of + or - 25% in the market curves at
December 31, 2021;
Scenario III - Considers a shock of + or - 50% in the market curves at
December 31, 2021.
138
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