Investor Presentaiton
in equity are recorded in the statement of income (in the same line item
affected by the transaction originally hedged) upon realization of the hedged
exports and/or sales referenced to London Metal Exchange (LME) prices.
(ii) Fair value hedges
With the objective of maintaining the flow of the metal businesses' opera-
ting revenue pegged to LME prices, the subsidiaries enter into hedging tran-
sactions under which they convert sales at fixed prices to floating prices in
commercial transactions with customers interested in purchasing products
at a fixed price. Changes in the fair values of derivatives that are designated
derivatives are recognized in the income for the year.
(a) Effects of derivative financial instruments on the balance
sheet and cash flow
The following are the derivative financial instruments and the objects pro-
tected by them:
=
Principal Value
2020
Net revenue
Total (net
Programs
2021
2020
As per unit
between
assets and
liabilities)
Inventory
Hedges for sale of zinc at a fixed price
Zinc forward
8,787
15,695
ton
10
10
2021
Changes in fair value
2021
Fair value by maturity
from
products
sold and
services
rendered
Cost of
products
sold and
services
Other
operating
Other
Finance comprehensive
rendered
income, net results, net
income
Gain (loss)
Realized
Total (net
between
assets and
liabilities)
2021
2022
2023
2024+
32
32
Hedges for mismatches of quotational
period
Zinc forward
215,809
204,394
ton
11
6
11
6
54
54
(211)
(211)
10
10
Hedges for sale of zinc at a fixed price
Zinc forward
Operating margin hedging
Aluminum forward
Collars
USD forward
3
BRL
57,200
203,130
ton
(350)
(859)
120
5 USD millions
337 USD millions
52
15
(298)
(844)
Foreign exchange risk
Turkish Lira Term (EUR/TRY)
1
EUR millions
(1)
Turkish Lira Term (USD/TRY)
4
USD millions
(2)
(3)
135
1
2
3
23
19
19
23
19
19
MM
3
(70)
(57)
(57)
3
(70)
(57)
(57)
193
(798)
(218)
(217)
(1)
(1)
(63)
3
3
129
(797)
(216)
(215)View entire presentation