Financial instruments and risk management (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
Financial instruments and risk management |
|
Schedule of carrying amounts and fair values of financial assets and financial liabilities |
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, segregated by category:
|
December 31, 2021
|
|
|
Amortized cost
|
|
|
Assets/liabilities measured at FVTPL
|
|
|
Total
|
|
Financial assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
135,727
|
|
|
-
|
|
|
135,727
|
|
Financial investments |
798,786 |
|
|
- |
|
|
798,786 |
|
Trade receivables
|
340,519
|
|
|
-
|
|
|
340,519
|
|
Contract assets
|
134,388
|
|
|
-
|
|
|
134,388
|
|
Derivatives
|
-
|
|
|
896
|
|
|
896
|
|
Other assets
|
32,949
|
|
|
-
|
|
|
32,949
|
|
|
1,442,369
|
|
|
896
|
|
|
1,443,265
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
Suppliers and other payables
|
33,566
|
|
|
-
|
|
|
33,566
|
|
Loans and borrowings
|
788,709
|
|
|
-
|
|
|
788,709
|
|
Lease liabilities
|
81,888
|
|
|
-
|
|
|
81,888
|
|
Accounts payable for business combination
|
85,726
|
|
|
-
|
|
|
85,726
|
|
Derivatives
|
-
|
|
|
535
|
|
|
535
|
|
Contract liabilities
|
13,722
|
|
|
-
|
|
|
13,722
|
|
Other liabilities
|
15,329
|
|
|
-
|
|
|
15,329
|
|
|
1,018,940
|
|
|
535
|
|
|
1,019,475
|
|
|
December 31, 2020
|
|
|
Amortized cost
|
|
|
Assets/liabilities measured at FVTPL
|
|
|
Total
|
|
Financial assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
162,827
|
|
|
-
|
|
|
162,827
|
|
Trade receivables
|
196,256
|
|
|
-
|
|
|
196,256
|
|
Contract assets
|
50,625
|
|
|
-
|
|
|
50,625
|
|
Derivatives
|
-
|
|
|
8,837
|
|
|
8,837
|
|
Other assets
|
15,368
|
|
|
-
|
|
|
15,368
|
|
|
425,076
|
|
|
8,837
|
|
|
433,913
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
Suppliers and other payables
|
15,312
|
|
|
-
|
|
|
15,312
|
|
Loans and borrowings
|
89,230
|
|
|
-
|
|
|
89,230
|
|
Lease liabilities
|
75,228
|
|
|
-
|
|
|
75,228
|
|
Derivatives
|
-
|
|
|
5,392
|
|
|
5,392
|
|
Contract liabilities
|
9,987
|
|
|
-
|
|
|
9,987
|
|
Other liabilities
|
8,856
|
|
|
-
|
|
|
8,856
|
|
|
198,613
|
|
|
5,392
|
|
|
204,005
|
|
|
Schedule of foreign currency risk |
|
December, 2021
|
|
|
December, 2020
|
|
|
USD
|
|
|
Other
|
|
|
USD
|
|
|
Other
|
|
Financial investments |
798,786 |
|
|
- |
|
|
- |
|
|
- |
|
Suppliers and other payables
|
(8,763
|
) |
|
(722
|
) |
|
(3,057
|
) |
|
(540
|
) |
Trade receivables
|
233,724
|
|
|
7,273
|
|
|
160,411
|
|
|
3,855
|
|
Loans and borrowings
|
(266,561
|
) |
|
-
|
|
|
(37,116
|
) |
|
-
|
|
Lease liabilities |
(32,159 |
) |
|
(962 |
) |
|
(30,307 |
) |
|
- |
|
Derivatives
|
361
|
|
|
-
|
|
|
(1,321
|
) |
|
-
|
|
Net exposure
|
725,388
|
|
|
5,589
|
|
|
88,610
|
|
|
3,315
|
|
|
Schedule of sensitivity analysis of non-derivative financial instruments |
|
|
Risk
|
|
Exposure in R$
|
|
Probable scenario (i)
|
|
|
Adverse Scenario (ii)
|
|
|
Remote Scenario (iii)
|
|
Short-term financial investments
|
|
Interest rate increase - CDI
|
|
66,007
|
|
10.67
|
% |
|
11.39
|
% |
|
12.11
|
% |
|
|
|
|
|
|
7,043 |
|
|
7,518 |
|
|
7,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and borrowings
|
|
Interest rate increase - CDI
|
|
(609,374
|
) |
10.67
|
% |
|
11.39
|
% |
|
12.11
|
% |
|
|
|
|
|
|
(65,020
|
) |
|
(69,408
|
) |
|
(73,795
|
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and borrowings
|
|
Interest rate increase - Libor
|
|
(179,333
|
) |
0.27
|
% |
|
0.54
|
% |
|
0.81
|
% |
|
|
|
|
|
|
(484
|
) |
|
(968
|
) |
|
(1,452
|
) |
Effect on earnings (reduction)
|
|
|
|
|
|
(8,367
|
) |
|
(12,763
|
) |
|
(17,160
|
) |
Sensitivity analysis for exchange rate risk
|
|
Risk
|
|
Probable scenario (i)
|
|
|
Adverse Scenario (ii)
|
|
|
Remote Scenario (iii)
|
|
Net exchange variation on transactions
|
|
|
|
|
|
|
|
|
|
|
|
Exchange variation in the year
|
|
Foreign currency appreciation - USD
|
|
5.30
|
|
|
5.50
|
|
|
5.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect on earnings (increase)
|
|
|
|
(5,718
|
) |
|
(5,933
|
) |
|
(6,378
|
) |
|
|
|
|
303
|
|
|
88
|
|
|
(357
|
) |
|
Schedule of maximum credit risk exposure |
|
December 31, 2021
|
|
|
December 31, 2020
|
|
Hedge financial instruments (current and non-current)
|
896
|
|
|
8,837
|
|
Cash and cash equivalents
|
135,727
|
|
|
162,827
|
|
Financial investments |
798,786 |
|
|
- |
|
Trade receivables
|
340,519
|
|
|
196,256
|
|
Contract assets
|
134,388
|
|
|
50,625
|
|
Other receivables (current and non-current)
|
32,949
|
|
|
15,368
|
|
|
Schedule of exposure to credit risk for trade receivables, contract assets and other receivables by geographic region |
At 31 December 2021, the exposure to credit risk for trade receivables, contract assets and other receivables by geographic region was as follows:
|
December 31, 2021
|
|
|
December 31, 2020
|
|
NAE (North America and Europe)
|
297,430 |
|
|
180,522 |
|
North America
|
287,992
|
|
|
179,943
|
|
Europe
|
9,438
|
|
|
579
|
|
LATAM (Latin America) |
202,528 |
|
|
75,577 |
|
APJ (Asia, Pacific and Japan) |
7,917 |
|
|
6,150 |
|
Total |
507,875 |
|
|
262,249 |
|
|
Schedule of remaining contractual maturities of financial liabilities |
The following are the remaining contractual maturities of financial liabilities on the reporting date. The amounts are gross and undiscounted, including contractual interest payments and excluding the impact of netting agreements:
|
2021
|
|
|
Carrying amount
|
|
|
Cash contractual cash flow
|
|
|
6 months or less
|
|
|
6- 12 months
|
|
|
1-2 years
|
|
|
2-5 Years
|
|
Non-derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
33,566
|
|
|
33,566
|
|
|
33,566
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Loans and borrowings
|
788,709
|
|
|
974,942
|
|
|
136,161
|
|
|
88,045
|
|
|
171,022
|
|
|
579,714
|
|
Lease liabilities
|
81,888
|
|
|
87,662
|
|
|
12,435
|
|
|
12,251
|
|
|
22,284
|
|
|
40,682
|
|
Accounts payable for business combination
|
85,726
|
|
|
85,726
|
|
|
1,064
|
|
|
47,860
|
|
|
12,179
|
|
|
24,623
|
|
Contract liabilities
|
13,722
|
|
|
13,722
|
|
|
13,722
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Other payables (current and non-current)
|
15,329
|
|
|
15,329
|
|
|
15,329
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Derivatives |
535
|
|
|
535 |
|
|
535 |
|
|
|
|
|
|
|
|
|
|
|
1,019,475
|
|
|
1,211,482
|
|
|
212,812
|
|
|
148,156
|
|
|
205,485
|
|
|
645,029
|
|
|
2020
|
|
|
Carrying amount
|
|
|
Contractual cash flow
|
|
|
6 months or less
|
|
|
6-12 months
|
|
|
1-2 years
|
|
|
2-6 years
|
|
Non-derivative financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
15,312
|
|
|
15,312
|
|
|
15,312
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Loans and borrowings
|
89,230
|
|
|
111,779
|
|
|
78,898
|
|
|
7,313
|
|
|
23,901
|
|
|
1,667
|
|
Lease liabilities
|
75,228
|
|
|
93,242
|
|
|
11,393
|
|
|
10,470
|
|
|
19,053
|
|
|
52,326
|
|
Contract liabilities
|
9,987
|
|
|
9,987
|
|
|
9,987
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Other payables (current and non-current)
|
8,856
|
|
|
8,856
|
|
|
8,856
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Derivatives |
5,392 |
|
|
5,392 |
|
|
1,920 |
|
|
3,472 |
|
|
|
|
|
|
|
|
204,005
|
|
|
244,568
|
|
|
126,366
|
|
|
21,255
|
|
|
42,954
|
|
|
53,993
|
|
|
Schedule of financing lines and bank credit lines |
Financing Lines
Guaranteed unsecured account, reviewed annually, and paid upon request:
|
December 30, 2021
|
|
|
December 31, 2020
|
|
Used
|
-
|
|
|
-
|
|
Not used
|
-
|
|
|
2,200
|
|
|
-
|
|
|
2,200
|
|
Bank credit lines
|
December 30, 2021
|
|
|
December 31, 2020
|
|
Used
|
11,161
|
|
|
89,197
|
|
Not used
|
47,434
|
|
|
61,521
|
|
|
58,595
|
|
|
150,718
|
|
|
Schedule of agreements for financial derivatives (NDFs) |
As of December 31, 2021, the Group had the following agreements for financial derivatives (NDFs):
|
|
2021
|
|
Maturity
|
|
Nominal value (USD)
|
|
Contracted rate
|
|
Amount in R$
|
|
Market rate
|
|
Fair value
|
|
February 25, 2022
|
|
(560
|
) |
5.6220
|
|
(3,148
|
) |
5.3459
|
|
(17
|
) |
Total
|
|
|
|
|
|
|
|
|
|
(17
|
) |
|
|
2020
|
|
Maturity
|
|
Nominal value (USD)
|
|
Contracted rate
|
|
Amount in R$
|
|
Market rate
|
|
Fair value
|
|
June 15, 2021
|
|
(3,100
|
) |
5.4928
|
|
(17,064
|
) |
5.4763
|
|
968
|
|
April 15, 2021
|
|
(800
|
) |
5.6345
|
|
(4,508
|
) |
5.1909
|
|
353
|
|
Total
|
|
|
|
|
|
|
|
|
|
1,321
|
|
|
Schedule of composition of the balances involving options to buy and sell currencies |
The composition of the balances involving options to buy and sell currencies is as follows:
|
|
2021
|
|
Maturity
|
|
Nominal value (USD)
|
|
Contracted rate
|
|
Amount in R$
|
|
Market rate
|
|
Fair value
|
|
01/21/2021 - 01/17/2022
|
|
875
|
|
Put option
|
|
4,900
|
|
5.8257
|
|
(349
|
) |
02/25/2021 - 02/25/2022
|
|
490
|
|
Put option
|
|
2,909
|
|
5.6490
|
|
(170)
|
|
|
|
|
|
|
|
|
|
|
|
(519
|
) |
|
|
|
|
|
|
|
|
|
|
|
|
01/21/2021 - 01/17/2022
|
|
875
|
|
Call option
|
|
(4,900
|
)
|
5.5563
|
|
298
|
|
02/25/2021 - 02/25/2022
|
|
490
|
|
Call option
|
|
(2,909
|
)
|
5.4690
|
|
196
|
|
|
|
|
|
|
|
|
|
|
|
494
|
|
|
|
|
|
|
|
|
|
|
|
(25
|
) |
|
|
2020
|
|
Maturity
|
|
Nominal value (USD)
|
|
Contracted rate
|
|
Amount in R$
|
|
Market rate
|
|
Fair value
|
|
15/01 - 15/06/2021
|
|
1,800
|
|
Call option
|
|
587
|
|
5.6770
|
|
(12
|
)
|
31/05 - 15/12/2021
|
|
2,800
|
|
Call option
|
|
786
|
|
5.5656
|
|
(569
|
)
|
15/04 - 30/11/2021
|
|
6,900
|
|
Call option
|
|
2,161
|
|
5.5116
|
|
(1,277
|
)
|
|
|
|
|
|
|
|
|
|
|
(1,858
|
) |
|
|
|
|
|
|
|
|
|
|
|
|
15/01 - 15/06/2021
|
|
1,800
|
|
Put option
|
|
(587
|
)
|
5.4800
|
|
512
|
|
31/05 - 15/12/2021
|
|
2,800
|
|
Put option
|
|
(786
|
)
|
5.2425
|
|
862
|
|
15/04 - 30/11/2021
|
|
6,900
|
|
Put option
|
|
(2,161
|
)
|
5.3388
|
|
2,608
|
|
|
|
|
|
|
|
|
|
|
|
3,982
|
|
|
|
|
|
|
|
|
|
|
|
2,124
|
|
|
Schedule of interest rate profile of interest-bearing financial instruments |
The interest rate profile of the Group’s interest-bearing financial instruments, as reported to the Group’s Management, is as follows:
|
|
2021
|
|
Maturity
|
|
Notional (USD)
|
|
Amount in R$
|
|
Floating rate receivable
|
|
Fixed rate payable
|
|
Fair value
|
|
07/16/2026
|
|
30,000
|
|
152,100
|
|
3-month LIBOR
|
|
3,07%
|
|
403
|
|
|
|
|
|
|
|
|
|
|
|
403
|
|
|
Schedule of financial instruments by type of measurement of fair value |
|
|
Carrying amount
|
|
|
Fair value
|
|
|
|
December 31, 2021
|
|
|
December 31, 2020
|
|
|
December 31, 2021
|
|
|
December 31, 2020
|
|
Level 2
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Deliverable Forward - NDF
|
|
(17
|
) |
|
1,321
|
|
|
(17
|
) |
|
1,321
|
|
Call and put option term
|
|
403
|
|
|
2,124
|
|
|
403
|
|
|
2,124
|
|
Interest rate swap
|
|
(25
|
) |
|
-
|
|
|
(25
|
) |
|
-
|
|
|
|
361
|
|
|
3,445
|
|
|
361
|
|
|
3,445
|
|
Non-derivatives |
|
|
|
|
|
|
|
|
|
|
|
|
Lease liabilities |
|
(81,888 |
) |
|
(75,228 |
) |
|
(87,662 |
) |
|
(93,242 |
) |
Loans and borrowings |
|
(788,709 |
) |
|
(89,230 |
) |
|
(974,942 |
) |
|
(111,779 |
) |
|
|
(870,597 |
) |
|
(164,458 |
) |
|
(1,062,604 |
) |
|
(205,021 |
) |
|
|
(870,236 |
) |
|
(161,013 |
) |
|
(1,062,243 |
) |
|
(201,576 |
) |
|