Investor Presentaiton
(y) Water crisis in Brazil
The Company has been following closely the water crisis currently experien-
ced by Brazil, which has significantly impacted the levels of reservoirs in the
country's hydroelectric plants, consequently impacting the market energy
prices experienced by energy consumers. The Company has evaluated the
topic and so far has not identified any relevant effect that could affect the
contracts it has with its counterparties.
(z) Sale of properties - VSA
On August 12, 2021, the Company signed a sale agreement for some pro-
perties located in Minas Gerais. The price agreed between the parties was
R$ 452, and the cost of writing off property, plant and equipment was R$
209, recognized net in other operating income (expenses) (Note 30).
(aa) Acquisition of the corporate tower of Alto das Nações -
Altre Empreendimentos e Investimentos Imobiliários Ltda.
(Altre)
In September 17, 2021, the subsidiary Altre signed an agreement to
purchase the Alto das Nações corporate tower with PNU Nações Unidas
Desenvolvimento Imobiliário S.A., a wholly-owned subsidiary of WTorre.
The building is part of the future Alto das Nações multipurpose real estate
complex, located in Marginal Pinheiros, São Paulo. The purpose of this ac-
quisition is to enable the expansion of the Company's activities. In order to
complete the purchase, the Company made an advance in the amount of
R$ 58, recorded under Advance for investment property. The payment of
the residual installments will be carried out in accordance with the comple-
tion of the works, scheduled for 2025.
(bb) Issuance of the Aripuanã Project operating license - Nexa
In October 07, 2021, the subsidiary Nexa obtained the operating licen-
se for the Aripuanã greenfield project. This license was issued by the
Environmental Secretariat of the state of Mato Grosso (SEMA).
Aripuanã is an underground polymetallic mine containing zinc, lead and copper.
Installation of facilities and equipment testing was completed in 2021, and
commercial production is scheduled to start in the third quarter of 2022.
(cc) Early settlement of borrowing under the terms of Law
4.131/1962 - VCSA
The subsidiary VCSA entered into two loan agreements, under the terms of
Law 4,131/1962, in amount of USD 100 million (R$ 515), with maturity in
2026 (both contracts include interest rate and currency swaps, derivative
financial instruments, which aim both to exchange exposure to floating
LIBOR rate and fixed rates to floating CDI rates and to exchange currency
from US dollar to Brazilian real).
The indirect subsidiary VCNNE made the total repayment of the borrowing
under the terms of Law 4,131/1962, in amount of USD 75 million (R$ 409),
with maturing in 2024. Consequently, the swap contract associated with
this borrowing was also terminated.
(dd) Committed Credit Facility - St. Marys
In October, 2021, the indirect subsidiary St. Marys made a new payment
of the available committed credit facility, in the amount of USD 55 million.
The approximate amount of USD 218 million remains available for new
withdrawals.
(ee) Civil class action – VCSA
On October 27, 2021, the subsidiary VCSA became aware, through news in
the media, of a civil class action filed by the Federal Public Prosecution Office
of São Paulo (MPF-SP), related to the decision issued by the Administrative
Council for Economic Defense (CADE) due to alleged anti-competitive prac-
tices in relation to the administrative proceeding that ended in October
2015. As stated in the Significant Event Notice disclosed, the VCSA has not
yet been served in this action.
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