Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Abstract] | |
Entity Registrant Name | COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO-SABESP |
Entity Central Index Key | 0001170858 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Transition Report | false |
Document Shell Company Report | false |
Document Annual Report | true |
Entity Interactive Data Current | Yes |
Entity Incorporation, State or Country Code | D5 |
Document Accounting Standard | International Financial Reporting Standards |
Entity Common Stock, Shares Outstanding | 683,509,869 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
ICFR Auditor Attestation Flag | true |
Statement of Financial Position
Statement of Financial Position - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | R$ 396401 | R$ 2253210 |
Financial investments | 3,411,146 | 0 |
Trade receivables | 2,204,029 | 2,137,752 |
Accounts receivable from related parties | 168,054 | 192,906 |
Inventories | 104,848 | 70,454 |
Restricted cash | 35,742 | 26,018 |
Recoverable taxes | 22,672 | 141,266 |
Other assets | 97,946 | 74,532 |
Total current assets | 6,440,838 | 4,896,138 |
Noncurrent assets | ||
Trade receivables | 246,957 | 215,275 |
Accounts receivable from related parties | 638,591 | 657,990 |
Escrow deposits | 164,942 | 177,982 |
Water and Basic Sanitation National Agency - ANA | 26,463 | 32,466 |
Other assets | 148,164 | 119,646 |
Investments | 63,417 | 53,187 |
Investment properties | 46,274 | 47,562 |
Contract assets | 7,969,164 | 7,617,714 |
Intangible assets | 34,405,575 | 32,325,447 |
Property, plant and equipment | 268,251 | 314,393 |
Total noncurrent assets | 43,977,798 | 41,561,662 |
Total assets | 50,418,636 | 46,457,800 |
Current liabilities | ||
Trade payables and contractors | 263,741 | 369,631 |
Borrowings and financing | 3,034,449 | 2,859,843 |
Accrued payroll and related taxes | 410,943 | 594,279 |
Taxes and contributions | 266,819 | 250,318 |
Interest on capital | 231,611 | 800,352 |
Provisions | 760,209 | 550,247 |
Services payable | 453,750 | 474,078 |
Public-Private Partnership - PPP | 130,207 | 110,291 |
Program Contract Commitments | 162,541 | 273,932 |
Other liabilities | 185,860 | 170,453 |
Total current liabilities | 5,900,130 | 6,453,424 |
Noncurrent liabilities | ||
Borrowings and financing | 14,224,175 | 10,384,866 |
Deferred income tax and social contribution | 320,716 | 433,996 |
Deferred Cofins and PASEP | 149,444 | 143,693 |
Provisions | 492,093 | 485,561 |
Pension obligations | 2,868,594 | 3,360,932 |
Public-Private Partnership - PPP | 3,045,066 | 3,183,689 |
Program Contract Commitments | 68,939 | 103,321 |
Other liabilities | 555,775 | 272,535 |
Total noncurrent liabilities | 21,724,802 | 18,368,593 |
Total liabilities | 27,624,932 | 24,822,017 |
Equity | ||
Capital stock | 15,000,000 | 15,000,000 |
Earnings reserves | 8,194,706 | 7,547,954 |
Other comprehensive loss | (401,002) | (912,171) |
Total equity | 22,793,704 | 21,635,783 |
Total equity and liabilities | R$ 50418636 | R$ 46457800 |
Income Statements
Income Statements - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Net operating revenue | R$ 17797541 | R$ 17983654 | R$ 16085094 |
Operating costs | (11,179,667) | (10,137,637) | (9,086,456) |
Gross profit | 6,617,874 | 7,846,017 | 6,998,638 |
Selling expenses | (751,286) | (803,404) | (693,480) |
Allowance for doubtful accounts | (444,826) | (128,099) | (166,727) |
Administrative expenses | (1,051,181) | (1,187,844) | (996,877) |
Other operating income (expenses), net | 107,656 | (18,748) | 28,591 |
Equity results of investments in affiliaties | 14,136 | 3,701 | 6,510 |
Profit from operations before finance income (expenses) and income tax and social contribution | 4,492,373 | 5,711,623 | 5,176,655 |
Financial expenses | (1,324,759) | (1,173,425) | (807,967) |
Financial revenues | 336,731 | 372,842 | 446,302 |
Exchange result, net | (2,178,343) | (233,098) | (902,671) |
Financial result, net | (3,166,371) | (1,033,681) | (1,264,336) |
Profit before income tax and social contribution | 1,326,002 | 4,677,942 | 3,912,319 |
Income tax and social contribution | |||
Current | (460,721) | (1,155,463) | (852,655) |
Deferred | 108,037 | (154,962) | (224,596) |
Income tax and social contribution, total | (352,684) | (1,310,425) | (1,077,251) |
Profit for the year | R$ 973318 | R$ 3367517 | R$ 2835068 |
Earnings per share - basic and diluted (in reais) | R$ 1.42 | R$ 4.93 | R$ 4.15 |
Statements of Comprehensive Inc
Statements of Comprehensive Income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Profit for the year | R$ 973318 | R$ 3367517 | R$ 2835068 |
Other comprehensive income (loss) | 511,169 | (363,076) | (10,994) |
Items which will not be subsequently reclassified to the income statement: | |||
Actuarial gains and (losses) on defined benefit Plans, net of income tax | 511,152 | (363,059) | (10,994) |
Other | 17 | (17) | 0 |
Total comprehensive income for the year | R$ 1484487 | R$ 3004441 | R$ 2824074 |
Statements of Changes in Equity
Statements of Changes in Equity - BRL (R$) R$ in Thousands | Capital stock [member] | Legal reserve [member] | Investment reserve [member] | Additional dividend proposed [member] | Retained earnings [member] | Other comprehensive loss [member] | Total |
Beginning balance at Dec. 31, 2017 | R$ 10000000 | R$ 1058275 | R$ 6939296 | R$ 53539 | R$ 0 | R$ 538101 | R$ 17513009 |
Net income for the year | 2,835,068 | 2,835,068 | |||||
Actuarial gains (losses) | (10,994) | (10,994) | |||||
Total comprehensive income for the year | 2,835,068 | (10,994) | 2,824,074 | ||||
Legal reserve | 141,755 | (141,755) | 0 | ||||
Investments reserve capitalized | 5,000,000 | (5,000,000) | 0 | ||||
Interest on capital (R$0.9851 per share) | (673,328) | (673,328) | |||||
2017 additional proposed dividends, approved (R$0.07833 per share) | (53,539) | (53,539) | |||||
Additional proposed dividends | 118,859 | (118,859) | 0 | ||||
Withholding income tax on interest on capital attributable as minimum mandatory dividends | (58,528) | (58,528) | |||||
Transfer to investments reserve | 1,901,126 | (1,901,126) | |||||
Ending balance at Dec. 31, 2018 | 15,000,000 | 1,200,030 | 3,840,422 | 60,331 | 0 | (549,095) | 19,551,688 |
Net income for the year | 3,367,517 | 3,367,517 | |||||
Actuarial gains (losses) | (363,076) | (363,076) | |||||
Total comprehensive income for the year | 3,367,517 | (363,076) | 3,004,441 | ||||
Legal reserve | 168,376 | (168,376) | 0 | ||||
Interest on capital (R$1.17012 per share) | (799,785) | (799,785) | |||||
2018 additional proposed dividends, approved (R$0.08827 per share) | (60,331) | (60,331) | |||||
Additional proposed dividends | 141,203 | (141,203) | 0 | ||||
Withholding income tax on interest on capital attributable as minimum mandatory dividends | (60,230) | (60,230) | |||||
Transfer to investments reserve | 2,258,153 | (2,258,153) | 0 | ||||
Ending balance at Dec. 31, 2019 | 15,000,000 | 1,368,406 | 6,098,575 | 80,973 | 0 | (912,171) | 21,635,783 |
Net income for the year | 973,318 | 973,318 | |||||
Actuarial gains (losses) | 511,169 | 511,169 | |||||
Total comprehensive income for the year | 973,318 | 511,169 | 1,484,487 | ||||
Legal reserve | 48,666 | (48,666) | |||||
Interest on shareholder's equity (R$0.33820 per share) | (231,163) | (231,163) | |||||
2019 additional proposed dividends, approved (R$0.11847 per share) | (80,973) | (80,973) | |||||
Additional proposed dividends | 40,806 | (40,806) | 0 | ||||
Withholding income tax on interest on capital attributable as minimum mandatory dividends | (14,430) | (14,430) | |||||
Transfer to investments reserve | 652,683 | (652,683) | 0 | ||||
Ending balance at Dec. 31, 2020 | R$ 15000000 | R$ 1417072 | R$ 6751258 | R$ 26376 | R$ 0 | R$ 401002 | R$ 22793704 |
Statements of Changes in Equi_2
Statements of Changes in Equity (Parenthetical) - R$ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of changes in equity [abstract] | |||
Interest on shareholder's equity | R$ 0.33820 | R$ 1.17012 | R$ 0.9851 |
Additional proposed dividends, approved | R$ 0.11847 | R$ 0.08827 | R$ 0.07833 |
Statements of Cash Flows
Statements of Cash Flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flow from operating activities | |||
Profit before income tax and social contribution | R$ 1326002 | R$ 4677942 | R$ 3912319 |
Adjustments for: | |||
Depreciation and amortization | 2,037,112 | 1,780,094 | 1,392,541 |
Residual value of property, plant and equipment, intangible assets and investment properties written-off | 16,590 | 45,434 | 24,974 |
Bad debt expense | 444,826 | 128,099 | 165,433 |
Agreement signed with the municipality of Maua | (280,774) | 0 | 0 |
Agreement signed with the municipality of Santo Andre | 0 | (1,336,908) | 0 |
Agreement signed with the municipality of Guarulhos | 0 | 0 | (928,014) |
Provisions and inflation adjustment | 444,090 | 384,620 | 111,940 |
Interest calculated on borrowings and financing payable | 559,931 | 568,679 | 563,902 |
Inflation adjustment and exchange gains (losses) on borrowings and financing | 2,267,179 | 280,526 | 982,072 |
Interest and inflation adjustment on liabilities | 20,931 | 46,038 | 30,103 |
Interest and inflation adjustment on assets | (46,946) | (39,547) | (64,046) |
Finance charges from customers | (344,513) | (364,291) | (289,321) |
Construction margin on intangible assets arising from concession agreements | (86,477) | (65,172) | (63,013) |
Provision for Consent Decree (TAC) and Knowledge Retention Program (PRC) | 1,684 | (130,345) | 80,245 |
Share of profit of investees | (14,136) | (3,701) | (6,510) |
Interest and monetary restatement (PPP) | 424,639 | 397,576 | 0 |
Provision from Sao Paulo agreement | 142,232 | 135,013 | 135,735 |
Pension plan obligations | 136,585 | 267,423 | 243,569 |
Other adjustments | 5,283 | 5,863 | 33,349 |
Total adustments | 7,054,238 | 6,777,343 | 6,325,278 |
Changes in assets | |||
Trade receivables | (213,084) | (72,538) | (71,679) |
Accounts receivable from related parties | 83,419 | 26,358 | 39,919 |
Inventories | (34,394) | (4,858) | 20,075 |
Recoverable taxes | (342,127) | 239,437 | (104,118) |
Escrow deposits | 35,630 | (12,302) | (1,639) |
Other receivables | (36,264) | (1,966) | 11,760 |
Changes in liabilities | |||
Trade payables and contractors | (248,404) | (349,037) | (176,826) |
Services payable | (162,560) | (114,957) | (89,988) |
Accrued payroll and related taxes | (185,020) | 159,794 | (103,488) |
Taxes and contributions payable | 384,676 | 63,276 | (4,829) |
Deferred Cofins/PASEP | 5,751 | 2,863 | 10,648 |
Provisions | (227,596) | (241,674) | (297,282) |
Pension obligations | (123,014) | (221,784) | (217,000) |
Other liabilities | (13,306) | (92,637) | 122,214 |
Cash generated from operations | 5,977,945 | 6,157,318 | 5,463,045 |
Interest paid | (626,625) | (737,326) | (732,048) |
Income tax and social contribution paid | (373,112) | (1,222,747) | (888,077) |
Net cash generated from operating activities | 4,978,208 | 4,197,245 | 3,842,920 |
Cash flows from investing activities | |||
Acquisition of contract assets and intangible assets | (3,299,657) | (3,195,247) | (2,132,559) |
Restricted cash | (9,724) | 5,882 | (13,078) |
Financial investments | (3,411,146) | 0 | 0 |
Investment increase/(decrease) | (5,734) | 240 | (1,136) |
Purchase of property, plant and equipment | (42,407) | (78,159) | (50,645) |
Dividends received | 0 | 0 | 8,131 |
Net cash used in investing activities | (6,768,668) | (3,267,284) | (2,189,287) |
Borrowings and financing | |||
Proceeds from loans | 4,777,474 | 1,793,388 | 1,634,553 |
Payment of loans | (3,244,099) | (2,148,198) | (1,678,748) |
Payment of interest on capital | (890,095) | (739,996) | (653,393) |
Public-Private Partnership - PPP | (543,346) | (548,079) | (178,333) |
Program Contract Commitments | (166,283) | (63,057) | (31,568) |
Net cash used in financing activities | (66,349) | (1,705,942) | (907,489) |
Increase / (decrease) in cash and cash equivalents | (1,856,809) | (775,981) | 746,144 |
Represented by : | |||
Cash and cash equivalents at the beginning of the year | 2,253,210 | 3,029,191 | 2,283,047 |
Cash and cash equivalents at the end of the year | 396,401 | 2,253,210 | 3,029,191 |
Increase / (decrease) in cash and cash equivalents | R$ 1856809 | R$ 775981 | R$ 746144 |
1 Operations
1 Operations | 12 Months Ended |
Dec. 31, 2020 | |
Operations [abstract] | |
Operations | 1 Operations Companhia de Saneamento Básico do Estado de São Paulo ("SABESP" or "Company") is a mixed-capital company headquartered in São Paulo, at Rua Costa Carvalho, 300, CEP 05429-900, controlled by the State of São Paulo. The Company is engaged in the provision of basic and environmental sanitation services in the State of São Paulo, as well as it supplies treated water and sewage services on a wholesale basis. In addition to providing basic sanitation services in the State of São Paulo, SABESP may performs these activities in other states and countries, and can operate in drainage, urban cleaning, solid waste handling and energy markets. SABESP aims to be a world reference in the provision of sanitation services, in a sustainable, competitive and innovative manner, with a focus on customers. As of December 31, 2020, the Company operated water and sewage services in 375 municipalities of the State of São Paulo, 342 have already signed contracts, pursuant to Law 11,445/2007. Most of these municipalities’ operations are based on 30-year concession, program and services contracts, except for the municipalities of Guarulhos, Mauá, Mogi das Cruzes, Santo André, São Bernardo do Campo, São João da Boa Vista and Tejupá, which have a 40-year term. The table below shows a summary of the contractual situation of the municipalities served: December 31, 2020 December 31, 2019 Total municipalities that have already signed contracts (*) 342 325 Balance – intangible and contract assets 39,440,568 35,990,087 Percentage of intangible and contract assets 93.08% 90.10% Revenue from sanitation services (excluding construction revenue) 14,406,803 13,700,777 Percentage of revenue from sanitation services (excluding construction revenue) 95.05% 84.92% Municipalities with expired: 8 21 Balance – intangible and contract assets 264,931 1,637,878 Percentage of intangible and contract assets 0.63% 4.10% Revenue from sanitation services (excluding construction revenue) 39,088 451,603 Percentage of revenue from sanitation services (excluding construction revenue) 0.26% 2.80% Municipalities with concession agreements due by 2030: 25 27 Balance – intangible and contract assets 1,436,529 1,181,172 Percentage of intangible and contract assets 3.39% 2.96% Revenue from sanitation services (excluding construction revenue) 597,483 588,628 Percentage of revenue from sanitation services (excluding construction revenue) 3.94% 3.65% Municipality of São Paulo: Percentage of intangible and contract assets 37.94% 43.37% Percentage of revenue from sanitation services (excluding construction revenue) 44.58% 44.48% (*) Includes the municipality of Tapiratiba, which signed a contract in October 2019, to begin operating in April 2020. The Company operates in the municipality of Juquitiba under an authorization by public deed, which are valid and governed by the Brazilian Civil Code. Revenue from sanitation services (excluding construction revenue) of this municipality totaled R$ 6,056 as of December 31, 2020 (R$ 5,616 as of December 31, 2019 and R$ 5,786 as of December 31, 2018) and the total amount of intangible and contract assets for this municipality was R$ 77,014 as of December 30, 2020 (R$ 80,563 as of December 31, 2019). The Company's shares have been listed in the “Novo Mercado” (New Market) segment of B3 under the ticker symbol SBSP3 since April 2002 and on the New York Stock Exchange (NYSE) as American Depositary Receipts (“ADRs”) Level III, under the SBS code, since May 2002. Since 2008, the Company has been setting up partnerships with other companies, which resulted in the following companies: Sesamm, Águas de Andradina, Saneaqua Mairinque, Aquapolo Ambiental, Águas de Castilho, Attend Ambiental and Paulista Geradora de Energia. Although SABESP has no majority interest in the capital stock of these companies, the shareholders’ agreements provide for the power of veto and casting vote in certain issues jointly with associates, indicating the shared control in the management of investees, except for Saneaqua Mairinque, which, as of August 2020, no longer has a shared control. Economic instability worsened by COVID-19 The global economic instability worsened in early 2020 with the outbreak of a new coronavirus, which was considered pandemic by the World Health Organization (WHO). Accordingly, SABESP has been taken several preventive measures to ensure the continuity and quality of the services provided to the population, which have become even more essential. It is worth noting that any interruption in water supply by a basic sanitation company may compromise compliance with WHO’s recommendations for everyone to keep good hygiene habits, such as washing hands correctly and more frequently. The Company implemented a number of preventive measures so that its employees are not exposed to situations of risks, such as: (i) employees from the administrative sectors (especially) and those with more than 60 years of age are working under a remote system; (ii) restriction of domestic and international trips; (iii) anticipation of the influenza and pneumonia vaccination campaign, (iv) closing of all branches that assist the public, concentrating services in the digital channels, to protect customers and employees; among others. The Company also took all necessary preventive measures so that employees with strategic functions can work without increasing the risk of contamination, thus ensuring the continuity in the provision of essential services. Some of the economic and financial consequences arising from the COVID-19 pandemic include the following adverse effects: (i) high exchange volatility and increase in new funding costs; (ii) change in the mix of billed volume due to the increase in the residential category and decrease in the public, commercial, industrial categories, which have higher average tariffs, leading to a reduction in the total average tariff and, consequently, in revenues from customers in the commercial, industrial and public categories, in the amount of approximately R$ 804.5 million from January to December 2020 (R$ 215.0 million from October to December 31, 2020); (iii) postponement of the tariff adjustment from May 11 to August 15, 2020, with an estimate net impact of R$ 37.6 million on the operating revenue from May to December 2020; (iv) increase in default and in the expectation of higher future losses, due to the decrease in the municipalities’ revenue and the increase in bankruptcy petitions, which negatively impacted estimated losses by R$ 316.7 million from January to December 2020 compared to January to December 2019 (R$ 17.8 million from October to December 2020 compared to October to December 2019); and (v) payment exemption of water and sewage bills for consumers in the Residential Social and Residential Favela categories in all operated municipalities from April 1 to September 15, 2020, reducing revenue by R$ 116.9 million from January to September 2020, compared to the same periods in 2019. Opposed to the adverse effects, there were positive effects, such as the increase in revenues from residential customers (except for the social and favela categories), in the amount of R$ 840.3 million from January to December 2020 (R$ 249.3 million from October to December 2020), and the postponement of the payment of 50% of the Regulation, Control and Inspection Fee (TRCF) from May to December 2020, for settlement in 24 installments beginning January 2021, with effect of R$ 24.0 million from May to December 2020. Because of the adverse effects, in order to preserve the economic and financial sustainability, the Company adjusted budget by reducing expenses and, on April 27, 2020, July 10, 2020 and December 15, 2020, it held the 25 th th th Management expects that the initiatives implemented because of the above-mentioned impacts, in addition to the inclusion of retail services to municipalities previously served on a wholesale basis (Guarulhos, Santo André and Mauá), improved water security, due to the works carried out, and the credit lines contracted for purposes of investments, will be sufficient to meet its commitments and not compromise the Company’s operating and financial continuity. New Legal Sanitation Framework On July 15, 2020, the Brazilian President sanctioned Federal Law 14,026/2020, known as the New Legal Framework for Basic Sanitation, with 18 vetoes. These vetoes were analyzed on March 17, 2021. The new law expands competition in the sector, by extinguishing program contract. Additionally, the New Legal Framework imposes performance goals to reach 99% of the population served with drinking water and 90% with sewage collection and treatment by December 31, 2033, encouraging operators to increase efficiency. It also granted the Water and Basic Sanitation National Agency (ANA) with authority to edit reference rules to regulate sanitation with a view to minimize regulatory uncertainties, thus creating a more stable and attractive environment for investments in the sector. In this new context, the Company understands it has some competitive advantages, given that: i) it has contracts that already include goals that meet or even anticipate those defined by the New Legal Framework, ii) it has access to public capital and major exposure to the private capital market, favoring the maintenance and/or expansion of the operated base iii) it has high governance level and iv) it has contracts signed with the granting authority that ensure 95% of the revenue. Approvals The financial statements were approved by Management on April 27, 2021. |
2 Basis of preparation and pres
2 Basis of preparation and presentation of the financial statements | 12 Months Ended |
Dec. 31, 2020 | |
Basis Of Preparation And Presentation Of Financial Statements | |
Basis of preparation and presentation of the financial statements | 2 Basis of preparation and presentation of the financial statements The financial statements of the Company have been prepared in accordance with the International Financial Reporting Standards – IFRS as issued by the International Accounting Standards Board – IASB. All material information related to the financial statements, and this information alone, is being disclosed and corresponds to the information used by the Company’s Management in its administration. The financial statements have been prepared under the historical cost except for certain financial instruments measured at fair value when required by the standards. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires Management to exercise its judgment in the process of applying the Company's accounting policies. The areas involving a higher degree to judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are described in Note 6. |
3 Summary of Significant Accoun
3 Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 3 Summary of Significant Accounting Policies The main accounting policies applied in the preparation of these financial statements are defined below. These policies have been applied consistently in all years presented. 3.1 Cash and cash equivalents Cash and cash equivalents include cash in hand, bank deposits, overdraft accounts and other short-term highly liquid investments with maturities and intention of use by the Company’s Management in a period lower than three months. 3.2 Financial assets and liabilities Financial Asset - Classification The Company classified its financial assets according to the following categories: measured at amortized cost, measured at fair value through other comprehensive income and measured at fair value through profit or loss. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at inception. As of December 31, 2020 and 2019, the Company did not have financial assets classified as fair value through other comprehensive income and fair value through profit or loss. Amortized cost This comprises financial assets that meet the following conditions: (i) it is held within the business model whose objective is to hold financial assets to collect contractual cash flows; and (ii) the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Presented as current assets, except for those with maturity of more than 12 months after the reporting date (these are classified as noncurrent assets). The Company's financial assets measured at amortized cost include cash and cash equivalents, financial investments, restricted cash, balances of trade receivables, accounts receivable from related parties, other receivables, receivables from the Water and Basic Sanitation National Agency – ANA. Financial assets measured at amortized cost are recorded at fair value and subsequently at amortized cost, under the effective interest rate method, except for trade receivables, which is initially measured at transaction price, as it contains no financing items, and is subsequently measured at amortized cost. Financial Liabilities - Classification The Company classifies its financial liabilities measured at amortized cost. Classification depends on the purpose to which the financial liabilities were assumed. This category comprises balances payable to contractors and suppliers, borrowings and financing, services payable, balances payable from public-private partnership (PPP), and program contract commitments. The effective interest rate method is adopted to calculate the amortized cost of a financial liability and allocate its interest expense under the respective period. The effective interest rate exactly deducts the estimated future cash flows (including fees, transaction costs and other issue costs) throughout the financial liability’s estimated life or, when appropriate, during a shorter period, for initial recognition of the net carrying amount. Impairment of financial assets Trade receivables Due to the charactheristics of the Company’s accounts receivable such as (i) insignificant financial component, (ii) non-complex receivables portfolio, and (iii) low credit risk, the Company adopted the simplified approach of expected credit loss, which consists in recognizing the expected credit loss based on the total asset’s useful life. The methodology to calculate allowance for doubtful accounts consisted of using an estimate calculated based on the average default observed in the last 36 months, per maturity range, in addition to estimating the recovery of credits overdue for more than 360 days, based on the track record of the last three years. For estimate purposes, it also considered the category of private and public customers, and segregated accounts receivable among the regular consumption accounts and agreements. The Company also concluded that the estimates of the macroeconomic indicators Gross Domestic Product (GDP), Unemployment Rate and the Extended Consumer Price Index (IPCA) were not impacted, given that it carried out correlation analyses of these indicators and its default history, which did not result in a correlation between them. Deposit transactions and financial investments measured at amortized cost The Company analyzes changes in the rates of investments in bank deposits certificates and information obtained from regulatory agencies about the financial institutions. The likelihood of delinquency over 12 months and during the terms of these investments was based on historical data provided by credit rating agencies for each credit level and analyzed in terms of sensitivity based on current returns. These deposits and financial investments are subject to an insignificant risk of change in value. 3.3 Operating income (a) Revenue from sanitation services Revenue from water supply and sanitation services are recognized as the water is consumed and services are provided. Revenues, including unbilled revenues, are recognized at the fair value of the consideration received or receivable for the rendering of those services. Revenue is shown net of value-added tax, rebates and discounts. Unbilled revenues represent incurred revenues in which the services were provided, but not yet billed until the end of the each period and are recorded as trade receivables based on monthly estimates of the completed services. Revenues are recognized based on IFRS 15 (Revenue from Contracts with Customers), which establishes a five-step model applicable over revenue from a contract with a customer. Revenues are recognized when the Company: i) it identifies the contracts with customers; ii) it identifies the different obligations in the contract; iii) it determines the transaction price; iv) it allocates the transaction price to the performance obligations in the contracts; and (v) it satisfies all performance obligations. Disputed amounts are recognized as revenue when collected. (b) Construction revenue Revenue from concession construction contracts is recognized in accordance with IFRS 15 (Revenue from Contracts with Customers) and IFRIC 12 (Service Concession Arrengements), as all performance obligations are satisfied over time. During the construction of the contract, an asset is classified as contract assets, as the Company estimates that the fair value of its consideration is equivalent to expected construction costs plus margin. The fee represents the additional margin related to the work performed by the Company in relation to such construction contracts and it is added to construction costs, resulting in the construction revenue. 3.4 Trade receivables and allowance for doubtful accounts Trade receivables are amounts due from customers for services performed in the ordinary course of business. These are classified as current assets, except when maturity exceeds 12 months after the end of the reporting period. In these cases, they are presented as noncurrent assets. The Company establishes an allowance for doubtful accounts for receivable balances at an amount that Management considers to be sufficient to cover eventual losses, as described in note 3.2. 3.5 Inventories Inventories comprise supplies for consumption and maintenance of the water and sewage systems are stated at the lower of average cost of acquisition or net realizable value, and are classified in current assets. 3.6 Investment properties Investment properties are recorded at the acquisition or construction cost, less accumulated depreciation, except for the land group, calculated by the straight-line method at rates that consider the estimated useful life of the assets. Expenditures related to repairs and maintenance are recorded in the income statement when incurred. The Company also maintains some assets for undetermined use in the future, i.e. it is not defined if the Company will use these assets in the operation or sell them in the short term during the ordinary course of business. 3.7 Property, plant and equipment Property, plant and equipment comprise mainly administrative facilities not composing the assets, subject-matter of the concession agreements. Those assets are stated at historical acquisition or construction cost less depreciation, net of impairment losses, when necessary. Interest, other finance charges and inflationary effects resulting from financing effectively applied to construction in progress are recorded as cost of respective property, plant and equipment, in this case, for the qualifying assets, as applicable. Qualifying assets are assets that, necessarily, required a substantial period to get ready for its intended use or sale. The Company defined that this period is higher than 12 months, based on the completion period of the works, given that most of them take in average more than 12 months to be completed, which corresponds to one fiscal year of the Company. Subsequent costs included in the existing asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that the future economic benefit associated with the item will flow to the Company and the cost of the item can be reliably measured. Repairs and maintenance are charged to the income statement of the year, as incurred. Depreciation is calculated using the straight-line method to allocate their cost and is described in Note 16 (a). Land is not depreciated. Residual values and the useful life of assets are revised and adjusted, where applicable, at the end of each year. Gain and losses on disposals are determined by the difference between the proceeds with the carrying amount and are recognized in other operating income (expenses) in the income statement. 3.8 Intangible assets Intangibles are stated at acquisition cost and/or construction of the underlying assets, including construction margin, interest and other finance charges capitalized during the construction period, in this case, for the qualifying assets. Qualifying assets are assets that, necessarily, take a substantial period to get ready for its intended use or sale. The Company considers that substantial period means a period greater than 12 months. This period was established by considering the completion period of the majority of its constructions, which is greater than 12 months, which corresponds to one fiscal year of the Company. The intangible has its amortization initiated when the intangible assets are available for use in location and the necessary condition when this asset becomes operational. The amortization of the intangible assets is discontinued when the asset is totally consumed or it is disposed of, whatever occurs first. Donations in assets, received from third parties and governmental entities, to allow the Company to render water and sewage services are not recorded in the Company’s financial statements, since these assets are controlled by the concession grantor. Financial resources received as donations for the construction of infrastructure are recorded under “Other operating income”. (a) Concession agreements/program contracts/service contracts The Company operates concession agreements including the rendering of basic sanitation, environmental, water supply and sewage services signed with the concession grantor. The infrastructure used by SABESP subject to service concession arrangements is considered to be controlled by the concession grantor when: (i) The grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them, and at what price; and (ii) The grantor controls the infrastructure, i.e., retains the right to take back the infrastructure at the end of the concession. The rights over the infrastructure operated under the concession agreements are accounted for as an intangible asset as the Company has the right to charge for the use of the infrastructure assets, and the users (consumers) have the primary responsibility to pay SABESP for the services. The fair value of construction and other works on the infrastructure is recognized as revenue, as its fair value, when the infrastructure is built, provided that this work is expected to generate future economic benefits. The accounting policy to recognize construction revenue is described in Note 3.3 (b). Investments made and not recovered through rendering of services, in cases where there is the right to receive the residual value of the assets at the end of the contract , must be indemnified by the concession grantor, with cash or cash equivalents or also, in general with the contract extension. These investments are amortized by the useful life of asset. The details referring to amortization of intangible assets are described in Note 15 (c). Law 11,445/2007 indicates, whenever possible, that basic sanitation public utilities will have the economic and financial sustainability ensured through the remuneration due to service collection, preferably as tariffs and other public prices, which may be established for each service or both jointly. Therefore, investments made and not recovered through services rendered, within original term of the contract, are recorded as intangible assets and amortized by the useful life of the asset, taking into consideration a solid track record of concession renewal and, therefore, the continuity of services. Although Law 14,026/2020 the New Legal Sanitation Framework, has been approved by the Brazilian President with a veto on the renewal of program contracts, such vetoes had not been voted until December 31, 2020, for to this reason the Company maintained the investments made in the concessions recorded under intangible assets. (b) Software license of use Software licensing is capitalized based on the acquisition costs and other implementation costs. Amortizations are recorded according to the useful life and the expenses associated with maintaining them are recognized as expenses when incurred. 3.9 Impairment of non-financial assets Property, plant and equipment, intangible assets and other noncurrent assets with defined useful lives, are yearly reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company does not have assets with indefinite useful life and assessed that there are no indications of impairment losses, mainly supported by Law 14,026/2020, which ensures that basic sanitation public utilities will have assured its economic and financial sustainability to public sanitation services through tariffs or indemnity. 3.10 Trade accounts payable and contractors Trade payables and contractors are obligations to pay for goods or services acquired from suppliers in the ordinary course of business and are initially measured at fair value, which generally correspond to the bill and subsequently at amortized cost, being classified as current liabilities, except when the maturity exceeds 12 months after the reporting date and are, otherwise, being presented as noncurrent liabilities. 3.11 Borrowings and financing Borrowings and financing are initially recognized at fair value, upon receipt of funds, net of transaction costs. Subsequently, borrowings and financing are stated at amortized cost, as presented in Note 17. Borrowings and financing are classified as current liabilities unless the Company has an unconditional right to defer the settlement of the liability for at least 12 months after the end of the reporting date. Nonconvertible bonds issued by the Company are recognized in a similar manner to borrowings. 3.12 Borrowing costs Borrowing costs attributable to acquisition, construction or production of an asset, which, necessarily, requires a substantial time period to be ready for use or sale are capitalized as part of the cost of these assets. Other borrowing costs are recognized as expenses in the period they are incurred. Borrowing costs are interest rates and other charges incurred by the Company related to borrowings, including exchange variation, as described below. The capitalization occurs during the period in which the asset has been built, considering the weighted average rate of borrowings effective on the capitalization date. For foreign currency-denominated borrowings or financing, the Company analyzes them as if they were contracted in local currency, restricting the capitalization of interest and/or exchange variation by the amount that would be capitalized if these were contracted in the domestic market in similar lines of credit and loans. 3.13 Salaries, payroll charges and contributions Salaries, vacations, Christmas bonus, profit sharing and additional payments negotiated in collective labor agreements plus related charges and contributions are recorded on the accrual basis. The profit sharing plan for its employees is based on operational and financial targets, and a provision is created when it is contractually required or when there is a past practice that created a constructive obligation, and is recorded on the accrual basis period as operating cost, selling and administrative expenses or capitalized in assets. 3.14 Provisions, legal obligations, escrow deposits and contingent assets Provisions related to claims are recognized when: i) the Company has a present (legal or constructive) obligation resulting from a past event; ii) it is probable that an outflow of resources that comprise economic benefits will be required to settle the obligation; and iii) the amount can be reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow of resources will be required to settle an obligation is determined by considering the nature of the obligations as a whole. Provisions are measured at the present value of the disbursements expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as financial expense. For financial statement presentation purposes, the provision is stated net of escrow deposits, based on the legal offset right. Escrow deposits not linked to the related obligations are recorded in noncurrent assets. Escrow deposits are adjusted by the indexes defined by the competent authorities. The Company does not recognize contingent liabilities in the financial statements since it either does not expect outflows to be required or the amount of the obligation cannot be reliably measured. Contingent assets are not recognized in the statements of financial position. 3.15 Environmental costs Costs related to ongoing environmental programs are expensed in the income statement, when there is any indication of an event. Ongoing programs are designed to minimize the environmental impact of the operations and to manage the environmental risks inherent to the Company's activities. 3.16 Income taxes – current and deferred Income taxes expenses comprise current and deferred income tax and social contributions. Current taxes The provision for income tax and social contribution is based on the taxable income for the year. The income tax was accrued at rate of 15%, plus 10% surtax on taxable income exceeding R$ 240. The social contribution was accrued at rate 9% over the adjusted net income. Taxable income differs from net income (profit presented in the income statement), because it excludes income and expenses taxable or deductible in other years, and excludes items not permanently taxable or not deductible. Income tax and social contribution are accrued based on legislation in place in the end of the year. The Company periodically evaluates and measures the positions taken in the income tax return with respect to situations in which the applicable tax regulations are subject to interpretation. It establishes provisions, where appropriate, based on amounts expected to be paid to the tax authorities. Deferred taxes Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction that at the time of the transaction affects neither accounting nor taxable profit nor loss, except for business combinations. Deferred income tax is determined using tax rates (and laws) effective at the end of the reporting period and expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax and social contribution assets are recognized only to the extent that it is probable that future taxable profit will be available for which temporary differences can be utilized and tax losses can be carryforward. Deferred taxes assets and liabilities are offset when there is a legally enforceable right of offsetting current tax assets against current tax liabilities and when deferred income tax assets and liabilities are related to income taxes levied by same tax authority over the tax entity. 3.17 Taxes on revenues Revenues from sanitation services are recognized on accrual basis for PASEP (Programa de Formação do Patrimônio do Servidor Público) and Cofins (Contribuição para o Financiamento da Seguridade Social), calculated at the rates of 1.65% and 7.60%, respectively. In addition, revenues from sanitation services are also subject to the Regulatory, Control and Oversight Fee (TRCF - Taxa de Regulação, Controle e Fiscalização), whose taxable event is the performance of regulatory, control and monitoring activities by ARSESP, calculated at 0.50% of the annual revenue directly generated by the service provided less taxes levied on the service. The taxes related to PASEP and Cofins incident on amounts invoiced to public entities are due when invoices are received. These taxes are calculated by the non-cumulativeness regime and presented net, as deductions from gross revenues. Tax debts calculated over “other operating income” are presented as deductions from the respective operating income. 3.18 Pension obligations (a) Defined benefit The Company makes contributions to defined benefit plans on a contractual basis and sponsored thereby. The regular contributions comprise the net administrative expenses and are recognized in the income statement for the period. Liabilities from defined benefit pension plan obligations correspond to the present value of the defined benefit obligation at the end of the reporting period, less the fair value of the plan’s assets. The defined benefit obligation (G1) and (G0) are calculated on an annual basis by independent actuaries, using the projected unit credit method. The estimated future cash outflow is discounted to its present value, using the interest rates of Government bonds with maturities that approximate the maturity of the related liability. Referring to actuarial gains and losses deriving from adjustments based on the experience and changes in actuarial assumptions are directly recorded under equity, as other comprehensive income (OCI), so that the plan's net assets or liabilities are recognized in the statement of financial position in order to reflect the full amount of plan’s deficit or surplus. In an event where a curtailment relates to only some of the employees covered by a plan, or where only part of an obligation is settled, the gain or loss includes a proportionate share of the past service cost and actuarial gains and losses. The proportionate share is determined on the basis of the present value of the obligations before and after the curtailment or settlement. (b) Defined contribution The Company makes contributions to defined contribution plans on a contractual basis and sponsored thereby, a supplementary private pension entity that provides post-employment benefits to its employees, in which the Company makes fixed and equal contributions to employees, within the limits set by regulation. In this model, the benefits paid are directly related to the amount contributed, with no deficits to be covered by the Company. 3.19 Financial revenues and expenses Financial revenue is primarily comprised of interest and inflation adjustments resulting from financial investments, escrow deposits and negotiations with customer to pay by installments, calculated using the effective interest rate method. Financial expenses are primarily comprised of interest, inflation adjustments and exchange rate changes on borrowings and financing, provisions, public-private partnership and program contract commitments. These financial income and expenses are calculated using the effective interest rate method. Inflation adjustments and exchange gains and losses derive from the collection or payment to third parties, as contractually required by law or court decision, and recognized on an accrual basis pro rata temporis. Inflation adjustments included in the agreements are not considered embedded derivatives, since they are deemed as inflation adjustment rates for the Company’s economic scenario. 3.20 Leases Leases are recognized at the present value of the contractual obligations, presented in assets as Right of Use (Note 15 (j)) and in liabilities as Leases (Note 17 (b)), except for short-term contracts (12 months or less) and/or low value (below US$ 5), which are recorded in the income statement recognized as an expense when incurred. 3.21 Other current and noncurrent assets and liabilities Other assets are stated at acquisition cost, net of any impairment loss, where applicable. The amounts recognized as other liabilities are stated at known or estimated amounts, including, where applicable, related charges and inflation adjustments. 3.22 Dividends and interest on capital The Company uses the tax benefits of distributing dividends as interest on capital, as permitted by Brazilian Law and based on the Bylaws. This distribution of dividend is accounted for in accordance with Brazilian Law 9,249/95 for tax deductibility purposes, limited to the daily pro rata fluctuation of the Long-term Interest Rate (TJLP). The benefit attributed to the shareholders is recognized in the current liability against Equity, based on its by-laws. Dividends and interest on capital over the minimum established in the by-laws are recognized when approved by the shareholders in the shareholders’ meeting, except for taxes incurring in the distribution of interest on capital. The tax benefit of the interest on capital is accrued in the income statement of the year, under the same recognition basis of expenses with interest on capital. 3.23 Present value adjustment Current and noncurrent financial assets and liabilities arising from long- or short-term transactions are adjusted to present value based on market discount rates as of the transaction date, when the effects are significant. 3.24 Segment information Operating segments are determined in a manner consistent with the internal reporting to the Company’s chief operating decision maker (“CODM”), which, in the case of SABESP, is comprised of the Board of Directors and Board of Executive Officers, to make strategic decisions, allocate resources and evaluate performance. Consequently, the Company determined that it has one operating segment (sanitation services). The accounting policies used to determine segment information are the same as those used to prepare the Company’s financial statements. The measure of the segment’s profit or loss is operating income before other operating expenses, net and equity accounting, which excludes construction revenue and related costs. The CODM analyzes asset and liabilitity information on a consolidated basis. Consequently, the Company does not disclose segment information on assets and liabilities. Substantially all of the Company’s noncurrent assets and revenue generated from customers are located in São Paulo State. Consequently, financial information is not disclosed by geographic area. 3.25 Translation into foreign currency (a) Functional and reporting currency Items included in the financial statements are measured using the currency of the primary economic environment in which the company operates ("the functional currency"). The financial statements are presented in Brazilian reais (R$), which is also the Company's functional currency. All financial information has been stated in reais and rounded to the next thousand, except where otherwise indicated. (b) Foreign currency translation Foreign currency-denominated transactions are translated into Brazilian reais using the exchange rates prevailing at the transaction dates. Statement of financial position accounts are translated by the exchange rate prevailing at reporting date. Exchange gains and losses resulting from the settlement of these transactions and the translation of foreign currency-denominated cash assets and liabilities are recognized in the income statement, except for borrowings and financing referring to property, plant and equipment or intangible assets in progress, where exchange losses are recognized as corresponding entry to the asset while construction is in progress, as described in Note 3.12. |
4 Changes in accounting practic
4 Changes in accounting practices and disclosures | 12 Months Ended |
Dec. 31, 2020 | |
Changes In Accounting Practices And Disclosures | |
Changes in accounting practices and disclosures | 4 Changes in accounting practices and disclosures 4.1 New standards, amendments and interpretations effective for periods beginning on or after January 1, 2020 New standards and revisions Standard Description Impact Amendments to IFRS 3 – Definition of a Business Clarifies that even though businesses usually have outputs (“products”), products are not required for an integrated set of activities and assets in order to qualify as business. In order to qualify as a business, an acquired set of activities and assets must include at least one input and a substantive process that together contribute significantly to the capacity of creating products. The application of this amendment did not impact the disclosures or amounts recognized in the annual financial statements. Amendments to IAS 1 and IAS 8 – Definition of Material The purpose of the amendments is to facilitate the understanding of the definition of material in IAS 1 and not to change the underlying concept of materiality in the IFRS Standards. The concept of “hidden” material information with immaterial information was included as part of the new definition. The application of these amendments did not impact the disclosures or amounts recognized in the annual financial statements. 4.2 New standards, amendments and interpretations to existing standards that are not yet effective The Company did not early adopt these standards and is assessing the impacts of the new and revised IFRS below on the disclosures or amounts recognized in the financial statements: Standard Description Impact IFRS 17 – Insurance Contracts 2 Establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. IFRS 17 will supersede IFRS 4 Insurance Contracts. The Company does not expect effects from adopting this standard. Amendments to IFRS 10 - Consolidated Statements and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 3 Clarify situations that involve the sale or contribution of assets between an investor and its associates or joint venture. The Company is assessing the impacts and effects of the amendments; however, it does not expect any effects from the amendments. Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current 2 These amendments to IAS 1 only affect the presentation of liabilities as current or non-current in the statement of financial position and not the amount or the time of recognition of any asset, liability, income or expense, or the information disclosed on such items. In addition, clarify that the classification of liabilities as current or non-current is based on the rights existing at the balance sheet date, specify that the classification is not affected by the expectations on whether an entity will exercise its right to postpone the settlement of the liability and introduce the definition of 'settlement' to clarify that settlement refers to the transfer to a counterparty, of cash, equity instruments, other assets or services. The Company does not expect any impacts from this standard. Amendments to IFRS 3 – Reference to the Conceptual Framework 1 The amendments update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Structure. The amendments also include in IFRS 3 the requirement that, for obligations within the scope of IAS 37, the acquirer applies this standard to identify whether there is an obligation at the acquisition date arising from past events. For a tax within the scope of IFRIC 21 - Taxes, the acquirer applies IFRIC 21 to determine whether the event that resulted in the obligation to pay the tax occurred up to the date of acquisition date. Finally, the amendments add an explicit statement that the acquirer does not recognize contingent assets acquired in a business combination. The Company does not expect effects from this standard. Amendments to IAS 16 – Proceeds Before Intended Use 1 The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from the sale of items produced before the asset is available for use, i.e. proceeds to bring the asset to the location and in the condition necessary for it to be able to operate as intended by the Company. Consequently, the entity recognizes these proceeds from the sale and corresponding costs in the result and measures the costs of these items in accordance with IAS 2 - Inventories. The amendments further clarify the meaning of “testing whether an asset is functioning properly”. Currently, IAS 16 determines this as assessing whether the technical and physical performance of the asset is such that it can be used in the production or supply of goods or services, for rent to third parties, or for administrative purposes. If not presented separately in the statement of comprehensive income, the financial statements should disclose the amounts of resources and costs included in income corresponding to items produced that are not a product of the entity's ordinary activities, and which items in the statement of comprehensive income include these resources and costs. The Company does not expect effects from this standard. Amendments to IAS 37 – Onerous Contracts – Cost of Compliance with the Contract 1 The amendments specify that the contract's "compliance cost" comprises costs directly related to the contract, these being the incremental costs of compliance with that contract (e.g., employees or materials) and the allocation of other costs directly related to contract compliance (for example, allocation of depreciation expenses to an item of property, plant and equipment used to fulfill the contract). These amendments apply to contracts for which the entity has not yet fulfilled all of its obligations at the beginning of the annual period in which the entity applies the changes for the first time. The comparative amounts are not restated. Instead, the entity shall recognize the cumulative effect of the initial adoption of the changes as adjusting the opening balance of retained earnings (or another component of shareholders' equity, as applicable) on the date of initial adoption. The Company does not expect effects from this standard. Annual improvements to IFRSs: 2018-2020 Cycle Amendments to IFRS 1 – First-time Adoption of International Financial Reporting Standards 1 1 1 · IFRS 1 – Initial Adoption of International Accounting Standards - provides for an additional measure for a subsidiary that becomes an initial adopter after its parent company with respect to accounting for accumulated translation differences. · IFRS 9 – Financial Instruments - clarifies that when applying the “10%” test to assess whether the financial liability should be written off, the entity includes only the fees paid or received between the entity (debtor) and the creditor, including fees paid or received by the entity or creditor on behalf of the other party. · IFRS 16 – Leases - this amendment excludes the example of reimbursement of improvements to third-party properties. Since the amendment is only an illustrative example, no effective date is defined. · IAS 41 – Biological Assets and Agricultural Product - the amendment excludes the requirement for entities to exclude cash flows for taxation when measuring fair value. The Company does not expect effects from this standard. 1 Effective for annual periods beginning on or after January 1, 2022. 2 Effective for annual periods beginning on or after January 1, 2023. 3 The effective date of the amendments has not yet been defined by IASB. There are no other standards and interpretations not yet adopted that may, in the opinion of Management, have a significant impact on the result for the year of equity disclosed by the Company in its financial statements. |
5 Risk Management
5 Risk Management | 12 Months Ended |
Dec. 31, 2020 | |
Risk Management | |
Risk Management | 5 Risk Management 5.1 Financial Risk Management Financial risk factors The Company's activities are affected by Brazilian economic scenario, making it exposed to market risk (exchange rate and interest rate), credit risk and liquidity risk. The Company’s financial risk management is focused on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company has not utilized derivative instruments in any of the reported periods. (a) Market risk Foreign currency risk Foreign exchange exposure implies market risks associated with currency fluctuations, since the Company has foreign currency-denominated liabilities, mainly US dollar and yen-denominated short and long-term borrowings. The management of SABESP’s foreign currency exposure considers several current and projected economic factors, besides market conditions. This risk arises from the possibility that the Company may incur in losses due to exchange rate fluctuations that would impact liability balances of foreign currency-denominated borrowings and financing raised in the market and related financial expenses. The Company does not maintain hedge or swap contracts or any derivative financial instrument to hedge against this risk. A significant amount of the Company’s financial debt is indexed to the US dollar and Yen, in the total amount of R$ 3,563,170 as of December 31, 2020 (R$ 6,382,009 as of December 31, 2019). Below, the Company’s exposure to exchange risk: December 31, 2020 December 31, 2019 Foreign currency R$ Foreign currency R$ Borrowings and financing – US$ 167,479 870,338 1,051,881 4,239,817 Borrowings and financing – Yen 52,969,560 2,671,255 56,452,885 2,097,225 Interest and charges from borrowings and financing – US$ 5,540 32,242 Interest and charges from borrowings and financing – Yen 16,037 12,725 Total exposure 3,563,170 6,382,009 Borrowing cost – US$ (12,342) (20,173) Borrowing cost – Yen (2,966) (3,038) Total foreign-currency denominated borrowings (Note 17) 3,547,862 6,358,798 The 44.2% decrease in foreign currency-denominated debt from December 31, 2019 to December 31, 2020 results from the exchange risk management carried out by the Company in 2020, in view of the uncertain scenario and was mainly impacted by the following factors: Exchange of foreign currency to local currency of the BID 2202 contract, in the amount of R$ 2,810,907 (US$ 494,617 thousand); Final amortization of Eurobonds, in the amount of R$ 1,910,124 (US$ 357,763 thousand), corresponding to principal plus interest and charges. The decrease was partially offset by the appreciation of the US dollar and Yen against the Real, as shown in the following table: December 31, 2020 December 31, 2019 Variation US$ R$ 5.1967 R$ 4.0307 28.9% Iene R$ 0.05043 R$ 0.03715 35.7% As of December 31, 2020, the amount of R$ 2,247,544 was recorded in liabilities related to exchange rate variation of borrowings and financing contracts (R$ 288,678 as of December 31, 2019). As of December 31, 2020, if the Brazilian real had depreciated or appreciated by 10 percentage points, in addition to the impacts mentioned above, against the US dollar and Yen with all other variables held constant, effects on results before taxes on the year would have been R$ 356,317 (R$ 638,201 as of December 31, 2019), lower or higher, mainly as a result of exchange losses or gains on the translation of foreign currency-denominated loans. Scenario I below presents the effect in income statements for the next 12 months, considering the projected rates of the US dollar and the Yen. Considering the other variables as remaining constant, the impacts for the next 12 months are shown in scenarios II and III with possible depreciations of 25% and 50%, respectively, in the Brazilian real. The Company understands that scenarios 25% and 50% are reasonable, given the instability of the real against the U.S. dollar and the Yen. Depreciation came to 28.9% and 35.7%, respectively, in 2020. Scenario I (Probable) Scenario II (+25%) Scenario III (+50%) (*) Net currency exposure as of December 31, 2020 in US$ - Liabilities 167,479 167,479 167,479 US$ rate as of December 31, 2020 5.1967 5.1967 5.1967 Exchange rate estimated according to the scenario 5.0000 6.2500 7.5000 Differences between the rates 0.1967 (1.0533) (2.3033) Effect on net financial result R$ - gain/(loss) 32,943 (176,406) (385,754) Net currency exposure as of December 31, 2020 in Yen - Liabilities 52,969,560 52,969,560 52,969,560 Yen rate as of December 31, 2020 0.05043 0.05043 0.05043 Exchange rate estimated according to the scenario 0.05125 0.06406 0.07687 Differences between the rates (0.00082) (0.01363) (0.02644) Effect on net financial result R$ - gain/(loss) (43,435) (721,975) (1,400,515) Total effect on net financial result in R$ - gain/(loss) (10,492) (898,381) (1,786,269) (*) For the probable scenario in US dollar, the exchange rate estimated for December 31, 2021 was used, pursuant to the BACEN Focus Report of December 31, 2020. For the Yen, the exchange estimated for December 31, 2021 was used, according to B3’s Reference Rates report of December 31, 2020. Interest rate risk This risk arises from the possibility that the Company could incur losses due to fluctuations in interest rates, increasing the financial expenses related to borrowings and financing. The Company has not entered into any derivative contract to hedge against this risk; however continually monitors market interest rates, in order to evaluate the possible need to replace its debt. The table below provides the Company's borrowings and financing subject to variable interest rate: December 31, 2020 December 31, 2019 CDI (i) 7,836,988 1,866,755 TR (ii) 1,619,416 1,675,203 IPCA (iii) 2,176,547 1,366,134 TJLP (iv) 1,517,657 1,381,342 LIBOR (v) 870,337 2,829,073 Interest and charges 164,439 105,667 Total 14,185,384 9,224,174 (i) CDI – (Certificado de Depósito Interbancário), an interbank deposit certificate (ii) TR – Interest Benchmark Rate (iii) IPCA – (Índice Nacional de Preços ao Consumidor Amplo), a consumer price index (iv) TJLP – (Taxa de Juros a Longo Prazo), a long-term interest rate index (v) LIBOR – London Interbank Offered Rate Another risk to which the Company is exposed, is the mismatch of monetary restatement indices of its debts with those of its service revenues. Tariff adjustments of services provided by the Company do not necessarily follow the increases in the inflation indexes to adjust borrowings, financing and interest rates affecting indebtedness As of December 31, 2020, if interest rates on borrowings and financing had been 1 percentage point higher or lower with all other variables held constant, the effects on profit before taxes would have been R$ 141,854 (b) Credit risk Credit risk arises from cash and cash equivalents, financial investments, as well as credit exposures to wholesale basis and retail customers, including outstanding accounts receivable, restricted cash and accounts receivable from related parties. Credit risk exposure to customers is mitigated by sales to a dispersed base. The maximum exposures to credit risk as of December 31, 2020 are the carrying amounts of instruments classified as cash and cash equivalents, financial investments, restricted cash, trade receivables and accounts receivable from related parties in the balance sheet date. See additional information in Notes 7, 8, 9, 10 and 11. Regarding the financial assets held with financial institutions, the credit quality was assessed by reference to external credit ratings (if available) or to historical information about the bank’s default rates. For the credit quality of the banks, such as deposits and financial investments, the Company considers the lower rating published by three main international rating agencies (Fitch, Moody's and S&P), according to internal policy of market risk management: Banks Fitch Moody's Standard Poor's Banco do Brasil S/A AA(bra) Aa1.br - Banco Santander Brasil S/A - Aaa.br brAAA Brazilian Federal Savings Bank AA(bra) Aa1.br brAAA Banco Bradesco S/A AAA(bra) Aa1.br brAAA Itaú Unibanco Holding S/A AAA(bra) Aa1.br brAAA Banco BV - Aa3.br brAAA Banco BTG Pactual S/A AA(bra) Aa2.br brAA+ The table below shows the rating assessment released by the Fitch agency, for deposit transactions and financial investments in local currency (R$ - domestic rating): December 31, 2020 December 31, 2019 Cash and cash equivalents and financial investments AA(bra) 2,662,685 2,193,725 AAA(bra) 891,243 41,992 Other (*) 253,619 17,493 3,807,547 2,253,210 (*) This category includes current accounts and investment funds in banks whose balances were not significant in 2019. The amount of R$ 253,066 referring to Banco BV (no classification) was recorded in 2020. (c) Liquidity risk Liquidity is primarily reliant upon cash provided by operating activities and borrowings and financing obtained in the local and international capital markets, as well as the payment of debts. The liquidity risk management considers the assessment of its liquidity requirements to ensure it has sufficient cash to meet its operating and capital expenditures needs, as well as the payment of debts. The funds held by the Company are invested in interest-bearing current accounts, time deposits and securities, selecting instruments with appropriate maturity or liquidity sufficient to provide margin as determined by projections mentioned above. The table below shows the financial liabilities of the Company, by relevant maturities, including the installments of principal and future interest to be paid according to the agreement. Future interest was calculated based on the contractual clauses for all agreements. For agreements with floating interest rate, the interest rates used correspond to the base dates above. 2021 2022 2023 2024 2025 2026 onwards Total As of December 31, 2020 Liabilities Borrowings and financing 3,439,199 1,994,506 2,019,520 2,177,923 1,672,201 9,828,487 21,131,836 Accounts payables to suppliers and contractors 263,741 - - - - - 263,741 Services payable 453,750 - - - - - 453,750 Public-Private Partnership – PPP 404,800 405,132 405,444 350,342 333,148 4,256,084 6,154,950 Program Contract Commitments 163,798 33,287 33,287 1,045 1,045 13,133 245,595 Cross default The Company has borrowings and financing agreements including cross default clauses, e.g., the early maturity of any debt, may imply the early maturity of these agreements. The indicators are continuously monitored in order to avoid the execution of these clauses and the more restrictive are showed in Note 17 (c). (d) Sensitivity analysis on interest rate risk The table below shows the sensitivity analysis of the financial instruments, prepared in accordance with IFRS 7, in order to evidence the balances of main financial assets and liabilities, calculated at a rate projected for the twelve-month period after December 31, 2020, or until the final settlement of each contract, whichever is shorter, considering a probable scenario (Scenario I), appreciation of 25% (Scenario II) and 50% (Scenario III). The purpose of the sensitivity analysis is to measure the impact of changes in the market over the financial instruments, considering constant all other variables. In the time of settlement the amounts can be different from those presented, due to the estimates used in the measurement. December 31, 2020 Indicators Exposure Scenario I (Probable) (i) Scenario II 25% Scenario III 50% Assets CDI 3,778,252 3.0000%(*) 3.7500% 4.5000% Financial income 113,348 141,684 170,021 Liabilities CDI (7,836,988) 3.0000%(*) 3.7500% 4.5000% Interest to be incurred (235,110) (293,887) (352,664) CDI net exposure (4,058,736) (121,762) (152,203) (182,643) Liabilities TR (1,619,416) 0.0001%(***) 0.0001% 0.0002% Expenses to be incurred (2) (2) (3) IPCA (2,176,547) 3.3200%(*) 4.1500% 4.9800% Expenses to be incurred (72,261) (90,327) (108,392) TJLP (1,517,657) 4.5500%(*) 5.6875% 6.8250% Interest to be incurred (69,053) (86,317) (103,580) LIBOR (870,337) 0.1900%(**) 0.2375% 0.2850% Interest to be incurred (1,654) (2,067) (2,480) Total expenses to be incurred, net (264,732) (330,916) (397,098) (*) Source: CDI and IPCA (BACEN Focus Report, December 31, 2020) and long-term interest rate as of December 31, 2020 (BACEN). (**) Source: Bloomberg. (***) Source: B3. 5.2 Capital management The Company’s objectives when managing capital are ensure its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. Capital is monitored based on the leverage ratio, which corresponds to net debt divided by total capital (shareholders and providers of capital). Net debt corresponds to total borrowings and financing less cash and cash equivalents and financial investments. Total capital is calculated as total equity as shown in the statement of the financial position plus net debt. December 31, 2020 December 31, 2019 Total borrowings and financing (Note 17) 17,258,624 13,244,709 (-) Cash and cash equivalents (Note 7) (396,401) (2,253,210) (-) Financial investments (Note 8) (3,411,146) - Net debt 13,451,077 10,991,499 Total equity 22,793,704 21,635,783 Total capital (shareholders + providers of capital) 36,244,781 32,627,282 Leverage ratio 37% 34% As of December 31, 2020, the leverage ratio reached 37% compared to 34% as of December 31, 2019, mainly due to the increase in net debt resulting from new borrowings and financing, as well as the increase in foreign currency debts resulting from the depreciation of the real against the Yen and the U.S. dollar, which impacted borrowings and financing in foreign currency. 5.3 Fair value estimates The Company considers that balances from trade receivables (current) and accounts payable to suppliers by carrying amount, less impairment approximate their fair values, considering the short maturity. Long-term trade receivables also approximate their fair values, as they will be adjusted by inflation and/or will bear contractual interest rates over time. 5.4 Financial instruments The Company did not have financial assets classified as fair value through other comprehensive income and fair value through profit or loss. The Company’s financial instruments included in the amortized cost category comprise cash and cash equivalents, restricted cash, trade receivables, balances with related parties, other receivables, and balances receivable from the Water National Agency – ANA, accounts payable to contractors and suppliers, borrowings and financing, services payable, balances payable deriving from the Public Private Partnership-PPP and program contract commitments, which are non-derivative financial assets and liabilities with fixed or determinable payments, not quoted in an active market, except for cash equivalents and financial investments. The estimated fair values of financial instruments are as follows: Financial assets December 31, 2020 December 31, 2019 Carrying amount Fair value Carrying amount Fair value Cash and cash equivalents 396,401 396,401 2,253,210 2,253,210 Financial investments 3,411,146 3,411,146 - - Restricted cash 35,742 35,742 26,018 26,018 Trade receivables 2,450,986 2,450,986 2,353,027 2,353,027 Water National Agency – ANA 26,463 26,463 32,466 32,466 Other receivables 246,110 246,110 194,178 194,178 Additionally, SABESP has financial instrument assets receivables from related parties, in the amount of R$806,645 as of December 31, 2020 (R$850,896 as of December 31, 2019), which were calculated in accordance with the conditions negotiated between related parties. The conditions and additional information referring to these financial instruments are disclosed in Note 11 to the financial statements. Part of this balance, in the amount of R$732,391 (R$747,579 as of December 31, 2019), refers to reimbursement of additional retirement and pension plan - G0 and is indexed by IPCA plus simple interest of 0.5% p.m. This interest rate approximates that one practiced by federal government bonds (NTN-b) with terms similar to those of related-party transactions. The agreement with the municipality of Mauá was recorded considering the Level 3 fair value hierarchy, due to the fact that this transaction is unobservable under market conditions, i.e., the inputs were not based on market data. All recurring and non-recurring transactions carried out by the Company, when classified at Level 3, are assessed by SABESP’s Controllership, in order to assess unobservable data and any valuation adjustments. Financial liabilities December 31, 2020 December 31, 2019 Carrying amount Fair value Carrying amount Fair value Borrowings and financing 17,258,624 17,702,649 13,244,709 13,937,611 Accounts payables to suppliers and contractors 263,741 263,741 369,631 369,631 Services payable 453,750 453,750 474,078 474,078 Program contract commitments 231,480 231,480 377,253 377,253 Public-Private Partnership - PPP 3,175,273 3,175,273 3,293,980 3,293,980 To obtain fair value of borrowings and financing, the following criteria have been adopted: (i) Agreements with CEF (Brazilian Federal Savings Bank) were projected until their final maturities, at the average interest rate plus TR x DI and the average contractual term, were adjusted to present value by a funding rate specific for the Company in similar contracts, plus TR x DI, on the end of the reporting period. TR x DI rates were obtained with B3. (ii) The debentures were projected up to the final maturity date according to contractual rates (IPCA, DI, TJLP or TR), and adjusted to present value considering the future interest rate published by ANBIMA in the secondary market, or by equivalent market rates, or the Company’s shares traded in the Brazilian market. (iii) Financing – BNDES corresponds to instruments valued at their carrying amount restated until the maturity date, and are indexed by the long-term interest rate (TJLP). These financing have specific characteristics and conditions defined in the financing agreements with BNDES, between independent parties, and reflect the conditions for those types of financing. Brazil does not have a consolidated market of long-term debts with the same characteristics of BNDES financing; thus, the offering of credit to the entities in general, with such long-term characteristic, is usually restricted to BNDES. (iv) Other financing in local currency are considered by carrying amount restated until the maturity date, adjusted to present value at future market interest rates. The future rates used were obtained on the website of B3. (v) Agreements with IDB and IBRD were projected until final maturity in origin currency, using the contracted interest rates + Libor’s future rate, adjusted to present value using the exchange coupon curve obtained with B3, plus future LFT, disclosed by ANBIMA in the secondary market. All the amounts obtained were translated into Brazilian reais at the exchange rate of December 31, 2020. (vi) Agreements with JICA were projected until final maturity in origin currency, using the contracted interest rates, translated to the U.S. dollar and adjusted to present value using the exchange coupon curve obtained with B3, plus future LFT, disclosed by ANBIMA in the secondary market. The amounts obtained were translated into Brazilian reais at the exchange rate of December 31, 2020. (vii) Lease and finance lease based on IFRS 16 correspond to instruments valued at their carrying amount restated until the maturity date, and are indexed by a fixed contractual rate. Thus, the Company discloses the amount recorded as of December 31, 2020 as market value. Financial instruments referring to financial investments and borrowings and financing are classified as Level 2 in the fair value hierarchy. Considering the nature of other financial instruments, assets and liabilities, the balances recognized in the statement of financial position approximate the fair values, except for borrowings and financing, considering the maturities close to the end of the reporting date, comparison of contractual interest rates with market rates in similar operations at the end of the reporting period, their nature and maturity terms. |
6 Key accounting estimates and
6 Key accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2020 | |
Key Accounting Estimates And Judgments | |
Key accounting estimates and judgments | 6 Key accounting estimates and judgments The preparation of the financial statements requires management to make certain judgments (except for those involving estimates) that have a significant impact on the amounts recognized based on experience and other factors deemed as relevant, which affect the values of assets and liabilities and which may present results that may differ from the actual results. The Company establishes estimates and assumptions regarding the future, which are reviewed on a timely basis. Such accounting estimates, by definition, may differ from actual results. The effects arising from the reviews of the accounting estimates are recognized in the period in which the estimates are reviewed. 6.1 Key accounting judgments in the application of accounting policies The Company assessed the main accounting policies that involve judgments, except those that involve estimates, and concluded that none of them have a significant effect. 6.2 Main sources of uncertainties in the estimates The areas that require a higher level of judgment and have greater complexity, as well as those in which assumptions and estimates are significant for the financial statements are disclosed as follows: (a) Allowance for doubtful accounts The Company establishes an allowance for doubtful accounts in an amount that Management considers sufficient to cover expected losses (see Note 10 (c) ), based on an analysis of trade receivables, in accordance with the accounting policy stated in Notes 3.2 and 3.4. The methodology for determining such losses requires significant estimates, considering several factors, among which an evaluation of receipts historical, current economic trends, estimates of forecast write-offs, the aging of the accounts receivable portfolio and expectation of future losses. Although the Company believes that the assumptions used are reasonable, actual results may be different. (b) Intangible assets arising from concession agreements and program contracts The Company recognizes as intangible assets those arising from concession agreements and estimates the fair value of constructions and other infrastructure works to record the cost of intangible assets, which are recognized upon the construction of the infrastructure, and it is likely that such asset will generate future economic benefits. Most of the service agreements executed with the granting authority is regulated by service agreements in which the Company has the right to receive, at the end of the contract, a payment equivalent to the residual balance of the concession intangible assets, which, in this case, is amortized over the useful life of the respective physical assets. Intangible assets under Concession Agreements, Service Agreements and Program Contracts, when there is no right to receive the residual balance of the asset at the end of the contract, are amortized on a straight-line basis according to the useful life of the asset or contract period, which occurs first. Additional information on the accounting for intangible assets arising from concession agreements is described in Notes 3.8 and 15. The recognition of the fair value of the intangible assets arising on concession agreements is subject to assumptions and estimates, and the use of different assumptions may affect the accounting records. Different assumptions and future changes in the useful life of these intangible assets may have significant impacts on the result of the operations . (c) Pension Plan Obligations – Pension Plans The Company sponsors a defined benefit plan and the defined contribution plan, as described in Notes 3.18 and 21. Defined pension plan obligations recognized in the statement of financial position consist of the present value of the defined benefit obligation on the reporting date less the fair value of the plan’s assets. The obligation of such benefit is calculated on an annual basis by independent actuaries, using the projected credit unit method. The present value of the defined benefit obligation is determined by discounting estimated future cash outflows, using interest rates compatible with market returns, which are denominated in the currency in which benefits will be paid and with maturity terms close to those of corresponding pension plan obligation . (d) Deferred income tax and social contribution The Company recognizes and settles taxes on income based on the results of operations calculated according to Brazilian Corporation Law, taking into consideration the provisions of the tax laws. Deferred tax assets and liabilities are recorded based on the differences between the accounting balances and the tax bases of the assets and liabilities. The Company regularly reviews the recoverability of deferred tax assets and recognizes a provision for impairment if it is probable that these assets will not be realized, based on the historic taxable income, on the projection of future taxable income and on the estimated period for reversing the temporary differences. These calculations require the use of estimates and assumptions. The use of different estimates and assumptions could result in a provision for impairment of all or a significant part of the deferred tax asset. Additional information on deferred taxes is described in Notes3.16 and 19 . (e) Provisions The provisions for civil, labor, environmental and tax risks are created based on Notes 3.14 and 20. Judgments regarding future events may significantly differ from actual estimates and exceed the amounts provisioned. The provisions are revised and adjusted to take into consideration changes in the circumstances involved. (f) Unbilled revenue The recognition of unbilled revenue correspond to services rendered for which readings have not been made yet. They are recognized based on monthly estimates calculated according to average billing. Additional information on revenue and accounts receivable are described in Notes 3.3 and 10 . |
7 Cash and cash equivalents
7 Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 7 Cash and cash equivalents December 31, 2020 December 31, 2019 Cash and banks 74,033 176,497 Cash equivalents 322,368 2,076,713 Total 396,401 2,253,210 Cash and cash equivalents include cash, bank deposits and high-liquidity short-term financial investments, mainly represented by repurchase agreements (accruing CDI interest rates) and CDBs, whose original maturities or intention of realization are lower than three months, which are convertible into a cash amount and subject to an insignificant risk of change in value. The average yield of cash equivalents corresponds to 95.82% of CDI in December 2020 (98.02% in December 2019). |
8 Financial investments
8 Financial investments | 12 Months Ended |
Dec. 31, 2020 | |
Financial investments [abstract] | |
Financial investments | 8 Financial investments The Company has financial investments in CDB, with daily liquidity, which it does not intend to use in the next three months, as shown below: December 31, 2020 Banco BV 253,066 Banco Itaú S/A 354,296 Banco Bradesco S/A 506,136 Banco BTG Pactual S/A 354,299 Banco do Brasil S/A 1,943,349 3,411,146 The average yield of financial investments corresponds to 98.95% of CDI in December 2020. |
9 Restricted cash
9 Restricted cash | 12 Months Ended |
Dec. 31, 2020 | |
Restricte cash [abstract] | |
Restricted cash | 9 Restricted cash December 31, 2020 December 31, 2019 Agreement with the São Paulo municipal government (i) 29,599 17,068 Brazilian Federal Savings Bank – escrow deposits (ii) 272 2,245 Other 5,871 6,705 35,742 26,018 (i) Refers to the amount deducted from the 7.5% of municipal revenue transferred to the Municipal Fund for Environmental Sanitation and Infrastructure, corresponding to eventual amounts unpaid by direct management bodies, foundations and government agencies, as established in the agreement entered into with the municipal government of São Paulo; and (ii) Refers to savings account for receiving escrow deposits regarding lawsuits with final and unappealable decisions in favor of the Company, which are blocked as per contractual clause. |
10 Trade receivables
10 Trade receivables | 12 Months Ended |
Dec. 31, 2020 | |
Trade Receivables | |
Trade receivables | 10 Trade receivables (a) Financial position balances December 31, 2020 December 31, 2019 Private sector: General (i) and special customers (ii) 1,663,738 1,505,150 Agreements (iii) 398,367 378,341 2,062,105 1,883,491 Government entities: Municipal 473,201 472,666 Federal 3,859 2,805 Agreements (iii) 333,740 277,047 810,800 752,518 Wholesale customers – Municipal governments: (iv) Mogi das Cruzes 3,582 3,278 São Caetano do Sul 18,808 9,871 Total wholesale customers – Municipal governments 22,390 13,149 Unbilled supply 713,310 745,884 Subtotal 3,608,605 3,395,042 Allowance for doubtful accounts (1,157,619) (1,042,015) Total 2,450,986 2,353,027 Current 2,204,029 2,137,752 Noncurrent 246,957 215,275 2,450,986 2,353,027 (i) General customers - residential and small and mid-sized companies; (ii) Special customers - large consumers, commercial, industries, condominiums and special billing customers (fixed demand agreements, industrial waste, wells, among others); (iii) Agreements - installment payments of past-due receivables, plus monetary adjustment and interest, according to the agreements; (iv) Wholesale basis customers - municipal governments - This balance refers to invoices issued as a result of services provided to municipalities, which are responsible for distributing to, billing and charging final customers. Agreement with the municipality of Mauá On June 16, 2020, the Company entered into a debt payment and receipt Consent Decree with the Municipality of Mauá (“Mauá”) and the Mauá Basic Sanitation (SAMA), aiming to settle SAMA’s existing debt upon the transfer of sanitation services to SABESP for 40 years. On the same date, the São Paulo State, the Municipality of Mauá and SABESP signed the Public Utility Service Agreement to Provide Water Supply in the Municipality of Mauá, through which the São Paulo State and the Municipality of Mauá granted SABESP the right to provide services for 40 years. As a result of the signature of the service provision agreement, the amounts due by Mauá and SAMA, of R$ 725,533 corresponding to receivables for the provision of water supply in the wholesale and R$ 85,918 to the compensation of assets due to the resumption of water supply and sewage services by the municipality in 1996, were given in exchange for the transfer of water supply services for a period of 40- years, the fair value of which being estimated at R$ 280,774. As a result of this transaction, the corresponding intangible asset was recognized against profit (loss) for the year at the fair value of the asset received, since the assets given in the exchange had not been recognized for not meeting the criteria for revenue recognition. In view of the service transfer, the Company contributed R$ 2,500 to settle administrative costs arising from the end of SAMA’s activities, recorded in intangible assets, for being a necessary cost for acquisition of the concession, against current liabilities. The contract provides for a quarterly transfer of four percent (4%) of the amount collected in the municipality by SABESP, less Cofins/Pasep, ARSESP’s Regulatory, Control and Oversight Fee (TRCF) and any charges levied on revenue, to be paid in up to 30 days after the publication of SABEP’s quarterly financial results. These transfers will start with the beginning of operations. Credits in court, in the form of registered warrants, will be maintained as performance bond of the Consent Decree and will be reduced based on the term of the Contract. The measurement of the fair value of the transaction with the municipality of Mauá was classified as level 3 fair value in its initial recognition, using the discounted cash flow technique considering the present value of such net cash flows expected from water supply services for a period of 40 years, taking into consideration the following main assumptions: Average tariff and average volume of water and sewage by economy based on SAMA’s average consumption histogram, referring to the period between January and December 2018; Indirect revenue based on historical data of the municipalities operated by SABESP in the Metropolitan Region of São Paulo; Average unit cost of the Metropolitan Region of São Paulo with synergy, due to economies of scale and the use of existing structures at SABESP (administrative and operational); Personnel costs – in the first two years, considering the payment of employees assigned by SAMA; Costs and Investments in the integrated metropolitan supply system prorated based on the volume of water supplied to the municipality; Exclusive investments by the municipality following the Municipal Sanitation Plan; Additional investments to be made by the municipality and paid by SABESP, corresponding to 4% of net revenue as of the first year; and Projected cash flow discount rate – 8.11% p.a. (WACC). The Company initiated operations in the municipality of Mauá in November 2020. (b) The aging of trade receivables is as follows December 31, 2020 December 31, 2019 Current 1,793,104 1,762,606 Past-due: Up to 30 days 340,760 330,488 From 31 to 60 days 177,103 164,913 From 61 to 90 days 120,488 86,765 From 91 to 120 days 88,323 58,971 From 121 to 180 days 113,060 81,003 From 181 to 360 days 82,365 33,206 Over 360 days 893,402 877,090 Total past-due 1,815,501 1,632,436 Total 3,608,605 3,395,042 The increase in the past-due balance was mainly due to the increase in defaults by private customers. (c) Allowance for doubtful accounts December 31, 2020 December 31, 2019 December 31, 2018 Balance at beginning of the year 1,042,015 1,099,442 1,067,973 Additions 176,776 54,064 61,315 Recoveries (61,172) (111,491) (29,846) Balance at the end of the year 1,157,619 1,042,015 1,099,442 Reconciliation of estimated/historical losses of income December 31, 2020 December 31, 2019 December 31, 2018 Write-offs (329,512) (179,929) (184,555) (Losses)/reversal with state entities - related parties 290 (5,597) 1,294 (Losses) with private sector / government entities (176,776) (54,064) (61,315) (Losses)/reversal with wholesale customers - - (29,458) Recoveries 61,172 111,491 107,307 Amount recorded expense (Note 29) (444,826) (128,099) (166,727) Expenses with estimated losses increased from R$ 128,099 in 2019 to R$ 444,826 in 2020 due to the increase in the level of defaults due to the economic instability of the country worsened by COVID-19. The Company does not have customers representing 10% or more of its total revenues. |
11 Related-Party Balances and T
11 Related-Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions [abstract] | |
Related-Party Balances and Transactions | 11 Related-Party Balances and Transactions (a) Accounts receivable, interest on capital payable, revenue and expenses with São Paulo December 31, 2020 December 31, 2019 Accounts receivable Current: Sanitation services (i) 109,078 131,851 Allowance for losses (i) (39,127) (39,417) Reimbursement for retirement and pension benefits paid (G0): - monthly flow (payments) (ii) and (vi) 22,726 31,584 - GESP Agreement – 2015 (iv) 75,377 68,888 Total current 168,054 192,906 Noncurrent: Agreement for the installment payment of sanitation services 4,303 10,883 Reimbursement of additional retirement and pension benefits paid (G0): - GESP Agreement – 2015 (iv) 634,288 647,107 Total noncurrent 638,591 657,990 Total receivables from shareholders 806,645 850,896 Assets: Sanitation services 74,254 103,317 Reimbursement of additional retirement and pension benefits (G0) 732,391 747,579 Total 806,645 850,896 Liabilities: Interest on capital payable to related parties 116,180 401,963 2020 2019 2018 Revenue from sanitation services 501,756 556,574 501,146 Payments received from related parties (520,881) (546,365) (509,672) Receipt of reimbursement referring to Law 4,819/58 (173,874) (152,112) (173,516) (i) Sanitation services The Company provides water supply and sewage services to the São Paulo State Government and other companies related to it in accordance with usual market terms and conditions, as considered by management, except for the settlement of credits which can be made according to items (iii) of this Note. The Company recognized R$ 39,127 as of December 31, 2020 (R$ 39,417 as of December 31, 2019 and R$ 33,820 as of December 31, 2018) as allowance for losses. (ii) Reimbursement of additional retirement and pension benefits paid Refers to amounts of supplementary retirement and pension benefits provided for in State Law 4,819/58 ("Benefits") paid by the Company to former employees and pensioners, referred to as Go. Under the Agreement referred on item (iii) the São Paulo State recognizes its liability from charges arising from the Benefits, provided that the payment criteria set forth by the State Department of Personnel (DDPE), based on legal guidance of the Legal Consultancy of the Department of Finance and of the State Attorney General's Office (PGE). As discussed on item (vi), during the assessment of the debt due from State of São Paulo to the Company there were certain divergences in the calculation and eligibility criteria of the benefits paid by the Company on behalf of GESP. See additional information about the Go plan in Note 21 (b) (ii). As a result of a court decision, the responsibility for making the payments returned to SABESP. (iii) GESP Agreement On December 11, 2001, the Company, the State of São Paulo (through the State Department of Finance Affairs, currently Department of Finance and Planning) and the Water and Electricity Department (DAEE), with the intermediation of the State Department of Infrastructure and Environment (former Department of Water Resources, Sanitation and Construction Works), entered into the Obligations, Payment Commitment and Other Covenants Acknowledgement and Consolidation Agreement ("GESP Agreement") for the settlement of outstanding debts between State of São Paulo and the Company related to sanitation services and to the retirement benefits. In view of the strategic importance of the Taiaçupeba, Jundiaí, Biritiba Mirim, Paraitinga and Ponte Nova reservoirs for ensuring and maintaining the Alto Tietê water volume, the Company agreed to receive them as partial repayment of the reimbursement related to the Benefits. The DAEE would transfer the reservoirs to the Company, replacing the amount owed by State of São Paulo. However, the São Paulo State Public Prosecution Office challenges the legal validity of this agreement, and its main argument is the lack of bidding and the absence of a specific legislative authorization for disposal of DAEE's assets. There is an unfavorable decision to SABESP not yet unappealable. See additional information in item (iv) below. On March 22, 2004, the Company signed the first amendment to the GESP Agreement, settling the amounts due by the State of São Paulo for water supply and sewage services provided, monetarily adjusted through February 2004; and formally authorizing the offset of amounts due by the São Paulo State Government with interest on capital declared by the Company and any other debt owed to the State of São Paulo as of December 31, 2003, monetarily adjusted through February 2004; and defining the payment conditions of the remaining liabilities of the State of São Paulo for the receipt of the water supply and sewage services. On December 28, 2007, the Company and the São Paulo State Government, represented by the Department of Finance, signed the second amendment to the terms of the original GESP Agreement, agreeing upon the payment in installments of the remaining balance of the First Amendment. In December 2012 the last installment was paid. On November 17, 2008, State of São Paulo, SABESP and DAEE signed the third amendment to the GESP Agreement, through which State of São Paulo recognized a debt balance payable to SABESP of R$915,251, monetarily adjusted until September 2008 in accordance with the fluctuation of the IPCA-IBGE, corresponding to the Undisputed Reimbursement, determined by FIPECAFI. SABESP accepted on a provisional basis the reservoirs as part of the payment of the Undisputed Reimbursement and offered to State of São Paulo a provisional settlement, recognizing a credit totaling R$696,283, corresponding to the value of the reservoirs in the Alto Tietê system. The remaining debit balance of R$ 218,967 was fully settled in 2018. The Company did not recognize the reimbursement receivable of R$696,283 related to the reservoirs, as it is not virtually certain that will be transferred by the State. In March 2015, Sabesp and State of São Paulo entered into an agreement to pay the amounts receivable, totaling R$ 696,283 (more information in item (iv) of this note). In addition, the third amendment provides for the regularization of the monthly flow of benefits. While SABESP is liable for the monthly payment of benefits, the State shall reimburse SABESP based on the criteria identical to those applied when determining the Undisputed Reimbursement. Should there be no preventive court decision, the State will assume the flow of monthly payment of benefits portion deemed as undisputed. (iv) GESP Agreement - 2015 On March 18, 2015, the Company, the State of São Paulo and the Department of Water and Electricity (DAEE), and the Sanitation and Water Resources Department as the intervening party, entered into a Term of Agreement in the amount of R$ 1,012,310, of which R$ 696,283 refer to the principal of the Undisputed Amount mentioned in item (iii) and R$ 316,027 corresponding to the inflation adjustment of the principal until February 2015. The Principal Amount will be paid in 180 installments, as follows: The first 24 installments were settled by immediately transferring 2,221,000 preferred shares issued by Companhia de Transmissão de Energia Elétrica Paulista - CTEEP, totaling R$87,174, based on the share closing on March 17, 2015, which were sold on April 20, 2016; and The amount of R$ 609,109, payable in 156 monthly installments, was adjusted by IPCA (Extended Consumer Price Index) until the initial payment date, on April 5, 2017. As of this date, installments are being adjusted by IPCA plus simple interest of 0.5% per month. Considering the lawsuit which objects the possibility of transferring the reservoirs is pending final and unappealable court decision, the agreement also provides for the following situations: If transfer is possible and the Reservoirs are effectively transferred to SABESP and registered at the notary’s office, SABESP will reimburse to the State the amounts paid in replacement of Reservoirs (Principal Amount) in 60 monthly installments adjusted by IPCA until the date of payment of each installment; and If the transfer of Reservoirs is not possible, the São Paulo State will pay to SABESP, in addition to the Principal Amount, the inflation adjustment credit of R$ 316,027 in 60 installments, starting these payments at the end of Principal Amount installment payment. The amount will be adjusted by IPCA to the start date of payments and, as of this date, IPCA will be incurred plus 0.5% simple interest rates/month over the amount of each installment. As of December 31, 2020, the balance receivable totaled R$ 75,377 in current assets (R$ 68,888 as of December 31, 2019) and R$ 634,288 in noncurrent assets (R$ 647,107 as of December 31, 2019). (v) Disputed Amounts As mentioned before, on November 17, 2008 the Company and the São Paulo State signed the third amendment to the GESP Agreement, when the reimbursements called disputed and undisputed were quantified. The amendment established the efforts to calculate the so-called Disputed Reimbursement of the Benefits. Under the fourth clause of the amendment, the Disputed Reimbursement represents the difference between the Undisputable Reimbursement and the amount actually paid by the Company as pension benefits and pensioners set out in Law 4,819/58, for which, the Company understands, the State of São Paulo is originally liable, but paid by SABESP under a court order. By entering into the third amendment, the State's Legal Representative (PGE) agreed to reassess the differences that gave rise to the Disputed Amount of benefits set out in Law 4,819/58. At the time, the expectation was based on the willingness of the PGE to reanalyze the issue and the implied right of the Company to the reimbursement, including based on opinions from outside legal advisors. However, the latest opinions issued by the PGE and received on September 4 and 22, 2009 and January 4, 2010, refute the reimbursement of previously defined as Disputed Amount. Even though the negotiations with the State are still in progress, it is not possible to assure that the Company will recover the disputed receivables without dispute. As part of the actions intended to recover the receivables that management considers due by the State, related to discrepancies in the reimbursement of the pension benefits paid by the Company, SABESP: (i) on March 24, 2010, reported to the controlling shareholder the official letter approved by the executive committee, proposing that the matter be discussed at the São Paulo Stock Exchange (B3) Arbitration Chamber; (ii) in June 2010, presented to Department of Finance a proposal to solve the outstanding items, such proposal was not accepted; (iii) on November 9, 2010, filed a judicial action against the State of São Paulo pleading the entire reimbursement related to employee benefits set out in Law 4,819/58 to finalize the discussion between the Company and State of São Paulo. Despite the legal action, the expectation of which is a possible gain, the Company will persist to obtain an agreement with GESP since the management believes that it is the best course of action to the Company and to its shareholders than waiting until the end of the lawsuit. As of December 31, 2020 and 2019, the disputed amounts between SABESP and State of São Paulo, corresponding to additional retirement and pension benefits paid (Law 4,819/1958), totaled R$ 1,281,409 and R$ 1,195,217, respectively. The Company recorded allowances for doubtful accounts for such amounts. (vi) Actuarial liability The Company also recognized an actuarial liability corresponding to additional retirement and pension benefits paid to employees, retired employees and pensioners of Plan G0. As of December 31, 2020 and 2019, the amounts corresponding to the actuarial liability totaled R$ 2,549,541 and R$ 3,046,255, respectively. For more information on additional retirement and pension benefits, see Note 21 (b). (b) Use of reservoirs – EMAE Empresa Metropolitana de Águas e Energia S.A. - EMAE planned to receive for the credit and obtain financial compensation for alleged past and future losses in electricity generation, due to water collection, and compensation for costs already incurred and to be incurred with the operation, maintenance and inspection of the Guarapiranga and Billings reservoirs used by SABESP in its operations. On October 28, 2016, the Company entered into an agreement based on a Private Transaction Agreement and Other Adjustments aimed to fully and completely settle the disputes involving the two companies and the SABESP will continue using the reservoirs. As of December 31, 2020, the Company recorded R$ 17,255 and R$ 73,660 in Other Liabilities, under current and noncurrent liabilities, respectively (in December 31, 2019, R$ 16,653 and R$ 87,231). In 2020, the amount of R$ 17,813 was paid. (c) Agreements with reduced tariffs with State and Municipal Government Entities that joined the Rational Water Use Program (PURA) The Company has signed agreements with government entities related to the São Paulo State and municipalities where it operates that benefit from a reduction of 25% in the tariff of water supply and sewage services when they are not in default. These agreements provide for the implementation of the rational water use program, which takes into consideration the reduction in water consumption. (d) Guarantees The São Paulo State provides guarantees for some borrowings and financing of the Company and does not charge any fee with respect to such guarantees. (e) Personnel assignment agreement among entities related to the São Paulo State Government The Company has personnel assignment agreements with entities related to the São Paulo State Government, whose expenses are fully charged. In 2020, the expenses related to personnel assigned by SABESP to other state government entities amounted to R$ 2,108 (R$ 4,881 in 2019 and R$ 8,903 in 2018). In 2019, the expenses related to personnel assigned by other entities to SABESP were R$ 13 (In 2019 and 2018, the expenses related to personnel assigned by other entities to SABESP were R$ 139 and R$ 116, respectively. (f) Non-operating assets As of December 31, 2020 and 2019, the Company had an amount of R$ 3,613 related to a land and lent structures. (g) SABESPREV The Company sponsors a private defined benefit pension plan (G1 Plan), which is operated and administered by SABESPREV. The net actuarial liability recognized as of December 31, 2020 amounted to R$ 319,053 (R$ 314,677 as of December 31, 2019), according to Note 21 (b). (h) Compensation of Management Key Personnel and Fiscal Council The compensation of the Executive Officers, members of the Audit Committee and Boards of Directors and Fiscal Councils of the Companies controlled by the São Paulo State complies with the guidelines of the State Capital Defense Council (CODEC) and is defined at the Annual Shareholders’ Meeting, as per article 152 of Brazilian Corporation Law. CODEC defines that the proposal for global and individual compensation of the statutory bodies for publicly held companies listed in B3’s Novo Mercado segment, controlled by the State, must be prepared by the Board of Directors under the Company’s Bylaws, within the scope of the Institutional Compensation Policy and submitted for approval of the Annual Shareholders’ Meeting. In addition to the monthly compensation, the members of the Board of Directors, Fiscal Council and Executive Board receive annual reward equivalent to a monthly fee, calculated on a prorated basis in December of each year. The purpose of this reward is to define a compensation similar to the Christmas bonus paid to the Company’s registered employees, given that the relationship of Management with the Company has a statutory nature. Benefits paid to Executive Officers only - meal vouchers, food vouchers, healthcare, private pension, annual rest (with the characteristic of paid leave of thirty (30) calendar days, with additional payment corresponding to one third of the monthly fees for such rest), and FGTS. SABESP pays bonuses for purposes of compensation of its Executive Officers, in accordance with the guidelines of the São Paulo State, such as a motivation policy, provided that the Company actually calculates quarterly, semi-annual and annual profits, and distributes mandatory dividends to shareholders, even if in the form of interest on capital. Annual bonuses cannot exceed six times Management’s monthly compensation or 10 % of the interest on capital paid by the Company, prevailing the shortest amount. Expenses related to the compensation of the members of Management and Fiscal Council totaled R$ 6,426 and R$ 5,344 in 2020 and 2019, respectively. Additional amounts of R$ 1,439 and R$ 1,348, referring to the executive officers’ bonus program, were paid in 2020 and 2019, respectively. (i) Loan agreement through credit facility The Company holds interest in certain Special Purpose Entities (SPEs), not holding the majority interest but with cast vote and power of veto in some issues, with no ability to use such power of veto in a way to affect returns over investments. Therefore, these SPEs are considered for accounting purposes as joint arrangements. The Company entered into a loan agreement through credit facility with the SPE Aquapolo Ambiental S/A to finance the operations of this company, until the borrowings and financing requested with financial institutions is granted. As of December 31, 2020, the balance of principal and interest of this agreement totaled R$ 9,420 and R$ 23,866, recorded under current assets and noncurrent assets, respectively, in “Other assets” (R$ 34,992 in noncurrent assets on December 31, 2019), at CDI + 1.2% p.a. As of January 27, 2020, the Company received R$ 3,000, of which R$ 1,231 for amortization of principal and R$ 1,769 for amortization of interest. The loan agreement originally matured on April 30, 2015 but was extended to October 30, 2015 and on November 25, 2015 a new amendment changed the payment schedule for three annual installments, the first of which maturing on December 30, 2021 and the last on December 30, 2023. (j) “Se Liga na Rede” (Connect to the Network Program) The São Paulo State enacted the State Law no. 14,687/2012, creating the pro-connection program, destined to financially subsidize the execution of household branches necessary to connect to the sewage collecting networks, in low income households which agreed to adhere to the program. The program expenditures, except for indirect costs, construction margin and borrowing costs are financed with 80% of funds deriving from the State Government and the remaining 20% invested by SABESP, which is also liable for the execution of works. As of December 31, 2020, the program total amount was R$ 130,436 (R$ 117,272 as of December 31, 2019), there was no balance receivable as of December 31, 2020 and 2019 from related parties. The amount of R$78,262 (R$ 65,099 as of December 31, 2019) was recorded in the group of intangible assets and R$ 52,174 was reimbursed by the São Paulo State (R$ 52,174 as of December 31, 2019) from the beginning of the program until December 31, 2020. |
12 Investments
12 Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investment [abstract] | |
Investments | 12 Investments The Company holds interest in certain Special Purpose Entities (SPE). Although SABESP has no majority shares of its investees, the shareholders’ agreement provides for the power of veto in certain management issues, however, with no ability to use such power of veto in a way to affect returns over investments, indicating participating shared control (joint venture – IFRS 11). The Company holds interest recognized by the equity accounting in the following investees: (a) Sesamm As of August 15, 2008, Sesamm – Serviços de Saneamento de Mogi Mirim S/A was incorporated for a period of 30 years from the date the concession agreement with the municipality for the purpose of providing complementary services to the sewage diversion system and implementing and operating sewage treatment system in the municipality of Mogi Mirim, including the disposal of solid waste. On October 30, 2019, ECS shares were transferred to GS Inima Brasil. After the acquisition was completed, SABESP continues to hold 36% of the shares and GS Inima now holds 64%. Sesamm's capital as of December 31, 2020, totaled R$ 19,532, and was represented by 19,532,409 registered common shares without a par value. The operations initiated in June 2012. (b) Águas de Andradina As of September 15, 2010, the Company, Águas de Andradina S.A. was incorporated, with indefinite term, for the purpose of providing water supply and sewage services to the municipality of Andradina. As of December 31, 2020, the capital of Águas de Andradina totaled R$ 17,936, divided into 17,936,174 registered common shares without a par value. SABESP holds 30% of its equity interest and Iguá 70%. The Company pledges as guarantee 100% of its shares in Águas de Andradina as a counter guarantee for the issuance of Letters of Guarantee with BNDES. The operations initiated in October 2010. (c) Águas de Castilho As of October 29, 2010, the Company, Águas de Castilho, was incorporated for the purpose of providing water supply and sewage services to the municipality of Castilho. As of December 31, 2020, the company’s capital was R$ 2,785, and was represented by 2,785,225 registered shares without a par value. SABESP holds a 30% interest and Iguá 70%. The Company pledges as guarantee 100% of its shares in Águas de Castilho as a counter guarantee for the issuance of Letters of Guarantee with BNDES. The operations initiated in January 2011. (d) Attend Ambiental As of August 23, 2020, Attend Ambiental S/A was incorporated with the purpose of implementing and operating a pre-treatment station of non-domestic effluents and sludge transportation in the metropolitan region of São Paulo, as well as the development of other related activities and the creation of similar infrastructures in other locations in Brazil and abroad. As of December 31, 2020, the capital totaled R$ 37,677, and was represented by 37,677,245 registered common shares without a par value. SABESP holds a 45% interest and Estre 55%. The operations initiated in December 2014. (e) Aquapolo Ambiental S/A. As of October 8, 2009, the Company, Aquapolo Ambiental S.A., was incorporated for the purpose of producing, providing and trading reused water for Quattor Química S.A., Quattor Petroquímica S.A., Quattor Participações S.A. and other companies comprising the Petrochemical Complex of Capuava and the metropolitan region of São Paulo. As of December 31, 2020, the capital of Aquapolo totaled R$ 36,412, and was represented by 42,419,045 registered common shares without a par value. SABESP holds 49% of its equity interest. The Company pledges as guarantee to the loan acquired through the issuance of debentures, 100% of its shares in Aquapolo Ambiental S/A. The operations initiated in October 2012. (f) Paulista Geradora de Energia As of April 13, 2015, the Company acquired shares from Empresa Paulista Geradora de Energia S/A - PGE, jointly with Servtec Investimentos e Participações Ltda ("Servtec) and Tecniplan Engenharia e Comércio Ltda ("Tecniplan"), which operational purpose is the implementation and commercial exploration of water potential in small hydroelectric power plants (PCHs), located at the Guaraú and Vertedouro Cascata Water Treatment Stations. As of December 31, 2020, the capital of Paulista Geradora de Energia was R$ 8,679, represented by 8,679,040 registered common shares without a par value, in which SABESP holds a 25% interest, Servtec holds 37.5% and Tecniplan 37.5%. As of December 31, 2020, operations had not initiated yet. Saneaqua Mairinque As of June 14, 2010, the Company, Saneaqua Mairinque S/A, was incorporated with indefinite term, for the purpose of exploring water supply and sewage services of the municipality of Mairinque. On August 20, 2020, the investee Saneaqua Mairinque held an Extraordinary Shareholders' Meeting that approved a capital increase in the amount of R$ 21,944, through the issue of 17,178,988 shares. SABESP waived its preemptive right in the participation of such capital increase, and the shares then issued because of the capital increase were entirely subscribed by the shareholder BRK Ambiental, resulting in the dilution of SABESP’s interest in the investee. Accordingly, SABESP discontinued the equity accounting method and recorded this financial asset under the fair value on the transaction date, in the amount of R$ 5,734. The amounts corresponding to the equity result were recorded until July 2020. As of December 31, 2020, the capital of Saneaqua Mairinque totaled R$ 26,127, and was represented by 20,320,227 registered common shares without a par value. SABESP holds a 4.6% interest and BRK 95.4%. The Company pledges 100% of the interest held in the above-mentioned company as guarantee for the financing obtained by Saneaqua Mairinque. The operations initiated in October 2010. Below is a summary of the investees’ financial information and SABESP’s equity interest: Company Equity Dividends distributed Profit (loss) for the year 2020 2019 2018 2020 2020 (*) 2019 2018 Sesamm 51,514 45,923 43,547 (1,741) 7,332 - 4,418 5,621 Águas de Andradina 29,576 30,065 24,832 (1,267) 3,403 (2,625) 7,271 2,407 Águas de Castilho 8,533 7,242 6,084 (322) 1,600 13 1,767 1,001 Saneaqua Mairinque¹ 4,013 4,783 5,720 - (770) - (871) (790) Attend Ambiental 11,409 7,486 1,426 - 3,958 (35) (18,217) (3,743) Aquapolo Ambiental 41,903 37,772 30,170 (15,000) 19,131 - 16,283 11,413 Paulista Geradora de Energia 6,692 7,144 7,625 - (452) - (481) (822) Company Investments Dividends distributed Other Comprehensive Income Reclassification Equity in the earnings of subsidiaries Interest percentage 2020 2019 2020 2020 2020 2020 (*) 2019 2018 2020 2019 2018 Sesamm 18,546 16,533 (627) - - 2,640 - 1,591 2,023 36% 36% 36% Águas de Andradina 8,873 9,020 (380) - - 1,020 (787) 2,181 722 30% 30% 30% Águas de Castilho 2,560 2,172 (97) - - 481 4 529 300 30% 30% 30% Saneaqua Mairinque² - 1,434 - 17 (1,203) (248) - (262) (237) 4,6% 30% 30% Attend Ambiental 5,134 3,369 - - - 1,781 (16) (8,198) (1,684) 45% 45% 45% Aquapolo Ambiental 20,532 18,508 (7,350) - - 9,374 - 7,979 5,592 49% 49% 49% Paulista Geradora de Energia 1,673 1,786 - - - (113) - (119) (206) 25% 25% 25% Total 57,318 52,822 (8,454) 17 (1,203) 14,935 (799) 3,701 6,510 Other investments 6,099 365 Overall total 63,417 53,187 (*) Refer to changes in the equity of investees, as their financial statements for the year ended December 31, 2019 were issued, including some adjustments, after the Company’s financial statements. (¹) ( ) On August 20, 2020, the investee Saneaqua Mairinque held an Extraordinary Shareholders' Meeting that approved a capital increase in the amount of R$ 21,944, through the issue of 17,178,988 shares. SABESP waived its preemptive right in the participation of such capital increase, and the shares then issued because of the capital increase were entirely subscribed by the shareholder BRK Ambiental, resulting in the dilution of SABESP’s interest in the investee. Accordingly, SABESP discontinued the equity accounting method and recorded this financial asset under the fair value on the transaction date, in the amount of R$ 5,734 recorded as “Other investments”. The amounts corresponding to the equity result were recorded until July 2020. |
13 Investment properties
13 Investment properties | 12 Months Ended |
Dec. 31, 2020 | |
Investment property [abstract] | |
Investment properties | 13 Investment properties December 31, 2019 Transfers Depreciation December 31, 2020 Investment properties 47,562 (1,240) (48) 46,274 December 31, 2018 Transfers Depreciation December 31, 2019 Investment properties 47,620 (9) (49) 47,562 December 31, 2017 Write-offs and disposals Transfers Depreciation December 31, 2018 Investment properties 57,652 (9,995) 13 (50) 47,620 As of December 31, 2020 and 2019, the market value of these properties was approximately R$383,000 and R$386,000, respectively. |
14 Contract assets
14 Contract assets | 12 Months Ended |
Dec. 31, 2020 | |
Contract assets [abstract] | |
Contract assets | 14 Contract assets Contract assets (works in progress) is the right to consideration in exchange for goods or services transferred to customers. As established by IFRS 15 - Revenue from contract with customers, assets related to the concession under construction, recorded under the scope of IFRIC 12 – Service Concession Arrengements, should be classified as Contract Assets during the construction period and transferred to Intangible Assets only after the completion of the works. A contract assets is initially recognized at fair value and includes borrowing costs capitalized during the period when the asset is under construction, based on the weighted average rate of borrowings in effect on the capitalization date. For further information on the capitalization of interest and construction margin, recorded during the construction period, see Note 15. December 31, 2019 Additions (i) Transfers Transfers of works to intangible assets (ii) December 31, 2020 (iii) Total contract assets 7,617,714 3,984,158 55,706 (3,688,414) 7,969,164 (i) The largest additions of the period are located in the municipalities of São Paulo, Praia Grande and São Bernardo do Campo, in the amounts of R$ 1,676 million, R$ 284 million and R$ 228 million, respectively. (ii) The largest transfers of the period are located in the municipalities of São Paulo, Guarulhos, Cotia and Praia Grande, in the amounts of R$ 1,414 million, R$ 173 million, R$ 117 million and R$ 115 million, respectively. (iii) The largest works are located in the municipalities of São Paulo, Praia Grande and São Bernardo do Campo, in the amounts of R$ 3,727 million, R$ 527 million and R$ 496 million, respectively. As of December 31, 2020, contract assets includes leases recognized before December 31, 2019 in accordance with IAS 17 amounting to R$ 276,893 (R$ 276,893 as of December 31, 2019). The leases are cost of the works, but are still in progress. December 31, 2018 Additions Write-offs Transfers Transfers of works to intangible assets December 31, 2019 Total contract assets 7,407,948 3,532,283 (4,910) 10,710 (3,328,317) 7,617,714 January 1, 2018 Additions Transfers of works to intangible assets December 31, 2018 Total contract assets 10,387,715 3,188,943 (6,168,710) 7,407,948 |
15 Intangible assets
15 Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets other than goodwill [abstract] | |
Intangible assets | 15 Intangible assets (a) Statement of financial position details December 31, 2020 December 31, 2019 Cost Accumulated amortization Net Cost Accumulated amortization Net Intangible right arising from: Concession agreements – equity value 671,904 (188,129) 483,775 2,066,459 (571,606) 1,494,853 Concession agreements – economic value 1,446,261 (711,596) 734,665 1,334,531 (621,679) 712,852 Program contracts 23,160,119 (6,799,812) 16,360,307 19,413,768 (5,594,068) 13,819,700 Program contracts – commitments 1,709,757 (338,834) 1,370,923 1,651,434 (286,559) 1,364,875 Services contracts – São Paulo 20,579,676 (5,707,072) 14,872,604 19,217,091 (4,826,328) 14,390,763 Software license of use 978,085 (437,460) 540,625 829,739 (358,033) 471,706 Right of use – other assets 141,782 (99,106) 42,676 113,233 (42,535) 70,698 Total 48,687,584 (14,282,009) 34,405,575 44,626,255 (12,300,808) 32,325,447 (b) Changes December 31, 2019 Addition Contract renewal Transfer of contract assets Transfers Write-offs and disposals Amortization December 31, 2020 Intangible right arising from: Concession agreements – equity value (*) 1,494,853 1 (1,031,830) 47,154 1,440 (858) (26,985) 483,775 Concession agreements – economic value 712,852 - - 113,320 (1,403) (42) (90,062) 734,665 Program contracts (*) 13,819,700 303,472 1,031,830 2,075,268 (51,570) (5,423) (812,970) 16,360,307 Program contracts – commitments 1,364,875 58,323 - - - - (52,275) 1,370,923 Services contracts – São Paulo 14,390,763 20,940 - 1,382,656 (23,645) (9,990) (888,120) 14,872,604 Software license of use 471,706 - - 70,016 78,169 - (79,266) 540,625 Right of use – Other assets 70,698 28,549 - - - - (56,571) 42,676 Total 32,325,447 411,285 - 3,688,414 2,991 (16,313) (2,006,249) 34,405,575 (*) As of December 31, 2020, intangible assets includes leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 269,561 - R$ 76,454 recognized as concession agreements – equity value and R$ 193,107 recognized as program contracts (R$ 292,824 as of December 31, 2019 – R$ 87,266 recognized as concession agreements – equity value and R$ 205,558 recognized as program contracts). December 31, 2018 First-time adoption of IFRS 16 Addition Contract renewal Transfer to indemnities receivable Transfer of contract assets Transfers Write-offs and disposals Amortization December 31, 2019* Intangible right arising from: Concession agreements – equity value (*) 4,073,344 - 2 (2,690,660) (4,345) 131,809 76,804 (8,311) (83,790) 1,494,853 Concession agreements – economic value 1,232,009 - 2,034 (532,173) - 89,041 1,956 (569) (79,446) 712,852 Program contracts (*) 8,777,929 - 1,338,443 3,223,773 - 970,534 137,283 (10,312) (617,950) 13,819,700 Program contracts – commitments 1,079,551 - 331,328 - - - - - (46,004) 1,364,875 Services contracts – São Paulo 13,391,452 - 3,867 (940) - 2,054,940 (228,583) (20,739) (809,234) 14,390,763 Software license of use 458,175 - - - - 81,993 (991) - (67,471) 471,706 Right of use – Other assets - 64,955 48,278 - - - - - (42,535) 70,698 Total 29,012,460 64,955 1,723,952 - (4,345) 3,328,317 (13,531) (39,931) (1,746,430) 32,325,447 (*) As of December 31, 2019, intangible assets includes leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 292,824 - (R$ 315,717 as of December 31, 2018 – R$ R$ 98,077 recognized as concession agreements – equity value and R$ 217,640 recognized as program contracts). December 31, 2017 Transfers to contract assets (*) Additions Contract renewal Transfers of works (**) Transfers Write-offs and disposals Amortization December 31, 2018 Intangible right arising from: Concession agreements – equity value 7,141,614 (1,427,046) 93 (1,935,780) 499,002 (5,268) (1,406) (197,865) 4,073,344 Concession agreements – economic value 1,433,937 (233,361) 373 - 114,442 88 (1,031) (82,439) 1,232,009 Program contracts 7,595,066 (2,019,461) 928,818 1,935,780 681,742 3,011 (7,616) (339,411) 8,777,929 Program contracts – commitments 910,375 - 206,946 - - - - (37,770) 1,079,551 Services contracts – São Paulo 15,917,015 (6,707,847) 3,724 - 4,818,734 12 (14,813) (625,373) 13,391,452 Software license of use 468,125 - 4,774 - 54,790 686 - (70,200) 458,175 Total 33,466,132 (10,387,715) 1,144,728 - 6,168,710 (1,471) (24,866) (1,353,058) 29,012,460 (*) Work in progress transferred to contract assets due to adoption of IFRS 15, as of January 1, 2018, as described in Note 4.1. (**) Work in progress transferred from contract assets to intangible assets. In 2020, the Company renewed the program contract with the municipalities of Bragança Paulista, Cubatão, Ilhabela, Jandira, Joanópolis, Lupércio, Meridiano, Paulínia, Pinhalzinho, Piracaia, Pirapora do Bom Jesus, Santana de Parnaíba, Ubatuba, Vargem Grande Paulista and Pedrinhas Paulista. All of these contracts are valid for 30 years. The Company signed contracts with the municipalities of Tapiratiba and Tejupá in October 2019 and March 2020, and started operations in April and September 2020, for 30 and 40 years, respectively. In addition to the municipalities above, SABESP signed contract with the municipality of Mauá in June 2020, for 40 years and started operations in November 2020. As of June 30, 2020, a contract was signed for the provision of treatment services and final disposal of solid waste and collection of garbage tax in the Municipality of Diadema for 40 years. Garbage collection fees started to be charged on water and sewage consumption bills as of January 1, 2021. In order to reach the best operationalization format, treatment services and final disposal of solid waste are in the study phase and, based on contractual provision, are subject to a partnership between SABESP and a private party, which will occur by means of a public call. (c) Intangible arising from concession agreements The Company operates public utility service concession agreements for water supply and sewage services mostly based on agreements that set out rights and obligations relative to the exploration of assets related to the public utility service (See Note 3.8 (a)). The agreements provide for the return of the assets to the concession grantor at the end of the concession period. As of December 31, 2020, the Company operated in 375 municipalities in the State of São Paulo (372 as of December 31, 2019). Most of these contracts have a 30-year concession period, except for the contracts with the municipalities of Guarulhos, Mauá, Mogi das Cruzes, Santo André, São Bernardo do Campo, São João da Boa Vista and Tejupá, which were signed for a period of 40 years. The services provided by the Company are billed at a price regulated and controlled by São Paulo State Sanitation and Energy Regulatory Agency (ARSESP). Intangible rights arising from concession agreements include: (i) Concession agreements – equity value These refer to municipalities assumed until 2006, except for the municipalities assumed by economic value through assets valuation report prepared by independent experts. The amortization of assets is calculated according to the straight-line method, which considers the assets useful life. (ii) Concession agreements – economic value From 1999 through 2006, the negotiations for new concessions were conducted on the basis of the economic and financial result of the transaction, determined in a valuation report issued by independent appraisers. The amount determined in the related contract, after the transaction is closed with the municipal authorities, realized through the subscription of the Company's shares or in cash, is recorded as "concession agreements" and amortized over the period of the related concession (usually 30 years). As of December 31, 2020 and 2019 there were no amounts pending related to these payments to the municipalities. Intangible assets are amortized on a straight-line basis over the period of the concession agreements or for the useful lives of the underlying assets, whichever is shorter. (iii) Program contracts These refer to the renewal of contracts previously referred to as concession agreements whose purpose is to provide sanitation services. The amortization of the assets acquired until the dates of signatures of the program contracts is calculated according to the straight-line method, which considers the assets’ useful lives. Assets acquired or built after the signature dates of program contracts are amortized during the contracted period (mostly, 30 years) or during the useful lives of underlying assets, whichever is shorter. (iv) Program contracts - Commitments After the enactment of the regulatory framework in 2007, renewals of concessions started to be made through of program contracts. In some of these program contracts, the Company undertook the commitment to financially participate in social and environmental actions. The assets built within the program contracts are recorded as intangible assets and are amortized by the straight-line method in accordance with the duration of the program contract (mostly, 30 years). As of December 31, 2020 and 2019, the amounts not yet disbursed were recorded under “program contract commitments”, in current liabilities, totaling R$ 162,541 and R$ 273,932, respectively, and in noncurrent liabilities, totaling R$ 68,939 and R$ 103,321, respectively. The rate of 8.11% (WACC) was applied to calculate the present value adjustment of contracts signed in 2020 (v) Services agreement with the Municipality of São Paulo On June 23, 2010, the Company entered into an agreement with the State of São Paulo and the Municipality of São Paulo to regulate the provision of water and sewage services in the municipality of São Paulo for a 30-year period, which is extendable for an another 30-year period. Also on June 23, 2010, an agreement was signed between the state and municipal government, and SABESP and the Sanitation and Energy Regulatory Agency of the State of São Paulo (“ARSESP”) are the consenting and intervening parties, whose main aspects are the following: 1. The State and the Municipality of São Paulo grant to SABESP the right to explore the sanitation services in the capital of the State of São Paulo, which consists of the obligation to provide such service and charge the respective tariff for this service; 2. The State and the Municipality sets forth ARSESP as the agency responsible for regulating the tariff, controlling and monitoring the services. 3. The evaluation model of the contract was the discounted cash flow, which considered the financial and economic sustainability of SABESP’s operations in the metropolitan region of São Paulo; 4. All operating costs, taxes, investments and the opportunity cost of investors and the creditors of SABESP’s were considered in the cash flow analysis; 5. The agreement provides for investments established in the agreement comply with the minimum of 13% of the gross revenue from the municipality of São Paulo, net of the taxes on revenues. Investment plans referring to SABESP’s execution shall be compatible with the activities and programs foreseen in the state, municipal sanitation plans, and where applicable, the metropolitan plan. The investment plan is not definite and will be revised by Managing Committee every four years, especially as to investments to be made in the following period; 6. The payment related to the Municipal Fund of Environmental Sanitation and Infrastructure to be applied in the sanitation service within the municipality must be recovered through the tariffs charges. Such payment represents 7.5% of the total revenue from the municipality of São Paulo, net of the taxes on revenue and delinquency in the period, recognized in profit or loss, as operating cost; 7. The opportunity cost of the investors and the creditors was established by the Weighted Average Cost of Capital (WACC) methodology. The WACC was the interest rate used to discount the cash flow of the operation; and 8. The agreement considers the recovery of net assets in operation, preferably evaluated through equity valuation or carrying amount monetarily restated, as defined by ARSESP. In addition, the agreement provides for the remuneration of investments to be made by SABESP, so that there is no residual value at the end of the agreement. Referring to the recovery through tariff, mentioned in item 6 above, of transfer to the Municipal Fund of Environmental Sanitation and Infrastructure, ARSESP issued in April 2013, the Resolution no. 413, postponing the application of Resolution no. 407 until the conclusion of the tariff revision process, the transfer to the bill of services of amounts referring to the municipal charges which were stipulated in Resolution no. 407. The postponement to apply Resolution no. 407 was due to a request by the São Paulo State Government to analyze, among other things, methods to reduce the impact on consumers. As of April 18, 2014, ARSESP Resolution no. 484 was published with the final results of SABESP’s Tariff Revision, however, both the São Paulo Municipal Government, through Official Letter no. 1,309/2014-SGM/GAB and the São Paulo State Government through a petition filed by the São Paulo State Office, through the Official Letter ATG/Official Letter no. 092/2014-CC, requested a postponement of the effects of ARSESP Resolution no. 413, published in the São Paulo State Official Gazette on March 20, 2013, until the conclusion of the revision of the Agreement entered into between the São Paulo Municipal Government, the São Paulo State Government and SABESP. By means of Resolution no. 488 of May 7, 2014, ARSESP maintained the suspension of the effectiveness of ARSESP Resolution no. 407, published on March 22, 2013, until the results obtained in the revision of the Agreement entered into by the São Paulo Municipal Government, the São Paulo State Government and SABESP postponing authorization for the transfer to the bill of the services related to the legally established municipal fees that, by force of the Program Agreements and Water Supply and Sewage Services Agreements, should be included in the Tariff Revision. The agreement represents 44.58% of the total revenue of the Company as of December 31, 2020 (44.48% as of December 31, 2019), and ensures the judicial and assets security. The municipality of São Paulo and the Company did not conclude an agreement to equalize financial pending issues existing until the signature date of the Agreement related to the rendering of water supply and sewage services to the real properties of the municipality, and for that reason, the Company filed a suit to collect these accounts, which are accrued for losses. (d) Capitalization of interest and other finance charges In 2020, the Company capitalized interest and inflation adjustment, including related foreign currency exchange effects in concession intangible assets, totaling R$238,330 (R$233,251 in 2019 and R$488,502 in 2018) during the construction period. (e) Construction margin The Company is primarily responsible to construct and install the infrastructure related to the concession, using own efforts or hiring outsourcing services, receiving the risks and benefits. Accordingly, the Company recognizes revenue from construction service corresponding to the cost of construction increased by gross margin. Generally, the constructions related to the concessions are performed by third parties, in such case, the margin of the Company is lower, normally, to cover eventual administration costs, and the responsibility of the primary risk. In 2020 and 2019 the margin was 2.3%. Construction margin for 2020, 2019 and 2018 were R$86,477, R$65,172 and R$63,013, respectively. (f) Expropriations As a result of the construction of priority projects related to water and sewage systems, the Company was required to expropriate third-parties' properties, and the owners of these properties will be compensated either amicably or through courts. The costs of these expropriations are recorded as concession intangible assets after the transaction is concluded. In 2020, the total amount related to expropriations was R$33,136 (R$34,681 in 2019 and R$106,429 in 2018). (g) Public-Private Partnership - PPP SABESP carries out operations related to the PPPs mentioned below. These operations and their respective obligations and guarantees are supported by agreements executed according to Law 11,079/2004. Alto Tietê Production System The Company and the special purpose entity CAB-Sistema Produtor Alto Tietê S/A (currently SPAT Saneamento S/A), formed by Galvão Engenharia S.A. and Companhia Águas do Brasil – Cab Ambiental, signed in June 2008 the contract of Public-Private Partnership of Alto Tietê production system. The service contract is valid for 15 years and has the purpose of expanding the capacity of the Taiaçupeba Water Treatment Station, from 10 thousand to 15 thousand of liters per second. The operation started in October 2011. As of December 31, 2020 and 2019, the carrying amounts related to this PPP recorded in intangible assets were R$ 287,645 and R$ 348,586, respectively. In 2020 and 2019, a discount rate of 8.20% p.a. was used to calculate the present value adjustment of this contract. SABESP monthly transfers funds from tariffs collected for services provided to the SPE CAB Sistema Produtor Alto Tietê S/A, in the amount of R$ 12,064, corresponding to monthly remuneration. This amount is annually adjusted by the IPC – FIPE and is monthly recorded in a restricted account, as established in the contracts. If SABESP complies with its monthly obligations with the SPE, the funds from the restricted account will be released. The guarantee has been effective since the beginning of the operation and will be valid until the end, termination, intervention, annulment or caducity of the Administrative Concession, or other events of extinction provided for in the Concession Agreement or in the legislation applicable to administrative concessions, including in the event of bankruptcy or dissolution of the SPE. São Lourenço Production System In August 2013, the Company and the special purpose entity Sistema Produtor São Lourenço S/A, formed by of Construções e Comércio Camargo Corrêa S/A and Construtora Andrade Gutierrez S/A, signed the Public-Private Partnership agreements of the São Lourenço Production System. In May 2018, the control of SPE Sistema Produtor São Lourenço S/A was transferred to CGGC Construtora do Brasil Ltda, previously formed of Construções e Comércio Camargo Corrêa S/A and Construtora Andrade Gutierrez S/A. The objective of the contract is: a) the construction of a water production system, mainly consisting of a water pipeline connecting Ibiúna to Barueri, a water collection station in Ibiúna, a water treatment station in Vargem Grande Paulista and water reservoirs; and b) the provision of services for a 25-year term, aiming at rendering services to operate the dehydration system, drying and final disposal of sludge, maintenance and works of the São Lourenço Production System. The works started in April 2014 and The São Lourenço Production System (SPSL) PPP started operating on July 10, 2018. Since the beginning of operations, the Company monthly transfers funds from tariffs collected for services provided to the SPE Sistema Produtor São Lourenço S/A, in the amount of R$ 34,380, corresponding to monthly remuneration plus any interests and charges. This amount is annually adjusted by the IPC – FIPE and is monthly recorded in a restricted account, as established in the contracts. If the Company complies with its monthly obligations with the SPE, the funds from the restricted account will be released. The guarantee will become effective as of the beginning of the system’s appropriate operation, duly accepted by SABESP, valid until the occurrence of any of the following events, whichever occurs first: (i) the original payment date of the last installment of interest / amortization of the principal taken out by the SPE to execute the works; (ii) the end, termination, intervention, annulment, caducity of the Administrative Concession, or other extinction events provided for in the Concession Agreement or in the law applicable to administrative concessions, including bankruptcy or extinction of the SPE. As of December 31, 2020 and 2019, the carrying amounts recorded in the Company’s intangible assets, related to this PPP, amounted to R$ 3,065,445 and R$ 3,235,008, respectively. Intangible assets are accrued for based on the physical evolution of the construction, with a counter-entry in the Private-Public Partnership (PPP) liabilities account. In 2020, a discount rate of 7.80% p.a. was used to calculate the adjustment to present value of the agreement. The obligations assumed by the Company as of December 31, 2020 and 2019 are shown in the table below: December 31, 2020 December 31, 2019 Current liabilities Noncurrent liabilities Total liabilities Current liabilities Noncurrent liabilities Total liabilities Alto Tietê 59,429 149,726 209,155 44,003 208,217 252,220 São Lourenço 70,778 2,895,340 2,966,118 66,288 2,975,472 3,041,760 Total 130,207 3,045,066 3,175,273 110,291 3,183,689 3,293,980 (h) Amortization of intangible assets The amortization average rate totaled 4.7% as of December 31, 2020 (4.2% as of December 31, 2019 and 2018) . (i) Software license of use The software license of use is capitalized based on the costs incurred to acquire software and make them ready for use. As of April 10, 2017, the Company implemented the Integrated Business Management System (Enterprise Resource Planning – SAP ERP), which includes the administrative/financial module. The implementation of the commercial module is in progress. The implementation of the commercial module Net Suíte system began in August 2019 and is being carried out in different phases. As of December 31, 2020, it had already been implemented in 17 municipalities. The implementation is expected to be concluded in December 2021. (j) Right of use The statement of financial position account Right of Use, created by the Company on January 1, 2019, reflects the amendment introduced by IFRS 16, which requires lessees to record the right-of-use asset and the lease liability. The Company has utilized the exemption in adoption of IFRS 16 related to leases with a lease term of 12 months or less and containing no purchase options and leases where the underlying asset has a low value when new. For those leases accounted for under the exemption option, the Company recognized R$ 3,157, R$ 8,736 and R$ 1,950 in its results, allocated to operating costs, selling expenses and administrative expenses, respectively in 2020. Details of right of use asset are as follows: Nature December 31, 2020 December 31, 2019 Leases - Contract Assets 276,893 276,893 Leases - Concession Agreements and Program Contracts Cost 405,426 405,426 Accumulated amortization (135,865) (112,602) (=) Net 269,561 292,824 Other assets Vehicles 115,208 91,709 Properties 15,508 13,309 Equipment 4,541 3,801 Other assets 6,525 4,414 Accumulated amortization (99,106) (42,535) (=) Net 42,676 70,698 Right of use 589,130 640,415 Lease liability corresponds to total future fixed lease payments, adjusted to present value, considering an incremental rate on borrowings. For further information, see Note 17. The table below shows the impact in the income statements: Impact in the income statement December 31, 2020 December 31, 2019 Right-of-use amortization (79,834) (65,413) Financial result – interest expenses (62,956) (54,791) Short-term and low-value lease expenses (13,845) (51,855) Decrease of the income of the year (156,635) (172,059) (k) Performance Agreements SABESP has performance agreements for the construction of assets, in which the contractor is paid for the delivery of results, not only for the execution of the construction works. The performance agreements have basically three phases: (i) implementation of the scope - construction of the asset; (ii) calculation of the performance of the asset built; and (iii) payment of fixed installments. SABESP monitors the performance of the agreement and recognizes the assets when future economic benefits are generated for the Company so that costs can be reliably measured. The performance value is part of the asset’s cost, as it has better performance and, consequently, generates additional future economic benefits for the Company. The limit to be paid to the supplier corresponds to 120% of the base value of the agreement. In most agreements, when the minimum performance percentage is not reached, the amount to be paid to the supplier will be the cost of the materials used in the construction of the assets only. As of December 31, 2020 and 2019, the accounting balances of these agreements recorded in contract asset were R$ 306,738 and R$ 51,650, and in intangible assets they totaled R$ 265,940 and R$ 127,410, respectively . |
16 Property, plant and equipmen
16 Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | 16 Property, plant and equipment (a) Statement of financial position details December 31, 2020 December 31, 2019 Cost Accumulated depreciation Net Depreciation average rate Cost Accumulated depreciation Net Depreciation average rate Land 94,213 - 94,213 - 92,962 - 92,962 - Buildings 86,860 (41,513) 45,347 2.1% 82,143 (40,438) 41,705 2.1% Equipment 372,103 (271,087) 101,016 14.8% 402,850 (250,577) 152,273 16.3% Transportation equipment 10,319 (7,350) 2,969 9.9% 8,946 (6,962) 1,984 9.9% Furniture and fixtures 31,232 (13,813) 17,419 6.7% 31,365 (13,146) 18,219 6.7% Other 7,618 (331) 7,287 4.9% 7,559 (309) 7,250 5.0% Total 602,345 (334,094) 268,251 11.2% 625,825 (311,432) 314,393 12.5% (b) Changes December 31, 2019 Additions Transfers Write-offs and disposals Depreciation December 31, 2020 Land 92,962 - 1,251 - - 94,213 Buildings 41,705 5,430 (713) - (1,075) 45,347 Equipment 152,273 26,055 (49,188) (174) (27,950) 101,016 Transportation equipment 1,984 298 1,351 - (664) 2,969 Funiture and fixtures 18,219 4,087 (3,712) (103) (1,072) 17,419 Other 7,250 6,537 (6,446) - (54) 7,287 Total 314,393 42,407 (57,457) (277) (30,815) 268,251 December 31, 2018 Additions Transfers Write-offs and disposals Depreciation December 31, 2019 Land 92,979 - (17) - - 92,962 Buildings 40,125 3,497 15 - (1,932) 41,705 Equipment 116,086 63,216 3,149 (429) (29,749) 152,273 Transportation equipment 3,473 308 (1,117) (2) (678) 1,984 Furniture and fixtures 13,578 5,266 734 (162) (1,197) 18,219 Other 1,371 5,872 66 - (59) 7,250 Total 267,612 78,159 2,830 (593) (33,615) 314,393 December 31, 2017 Additions Transfers Write-offs and disposals Depreciation December 31, 2018 Land 92,507 - 472 - - 92,979 Buildings 42,360 73 - - (2,308) 40,125 Equipment 103,803 46,473 986 (81) (35,095) 116,086 Transportation equipment 3,680 589 - - (796) 3,473 Furniture and fixtures 11,816 2,972 - (27) (1,183) 13,578 Other 884 538 - - (51) 1,371 Total 255,050 50,645 1,458 (108) (39,433) 267,612 |
17 Borrowings and financing
17 Borrowings and financing | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Borrowings and financing | 17 Borrowings and financing Borrowings and financing outstanding balance December 31, 2020 December 31, 2019 Financial institution Current Noncurrent Total Current Noncurrent Total Local currency 10st issue debentures - - - 41,021 - 41,021 12nd issue debentures 45,450 158,425 203,875 45,450 203,829 249,279 14th issue debentures 51,873 24,205 76,078 41,940 63,012 104,952 17th issue debentures 91,850 183,335 275,185 289,211 263,226 552,437 18th issue debentures 45,918 135,105 181,023 34,239 133,679 167,918 21st issue debentures 175,000 174,769 349,769 150,000 349,660 499,660 22nd issue debentures 99,969 678,149 778,118 - 765,689 765,689 23rd issue debentures - 864,678 864,678 - 864,603 864,603 24th issue debentures - 414,994 414,994 - 395,855 395,855 25th issue debentures 1,442,610 - 1,442,610 - - - 26th issue debentures - 1,047,767 1,047,767 - - - 27th issue debentures - 997,000 997,000 - - - Brazilian Federal Savings Bank 90,382 1,324,459 1,414,841 83,519 1,341,660 1,425,179 Brazilian Development Bank - BNDES PAC 13,185 20,247 33,432 11,184 27,854 39,038 Brazilian Development Bank - BNDES PAC II 9751 7,159 37,447 44,606 6,990 40,685 47,675 Brazilian Development Bank - BNDES PAC II 9752 4,851 25,470 30,321 3,913 24,457 28,370 Brazilian Development Bank - BNDES ONDA LIMPA 26,751 86,809 113,560 23,704 100,582 124,286 Brazilian Development Bank - BNDES TIETÊ III 86,823 542,519 629,342 52,874 383,191 436,065 Brazilian Development Bank - BNDES 2015 33,558 454,126 487,684 31,712 460,646 492,358 Brazilian Development Bank - BNDES 2014 5,143 23,017 28,160 4,659 25,411 30,070 Inter-American Development Bank - BID 2202 181,349 2,524,798 2,706,147 - - - Inter-American Development Bank - BID INVEST 44,815 898,060 942,875 - - - Leases (Concession Agreements, Program Contracts and Contract Assets) 28,847 399,896 428,743 27,314 432,357 459,671 Leases (Others) 36,576 9,300 45,876 51,088 23,365 74,453 Other 3,778 11,382 15,160 1,665 8,207 9,872 Interest and charges 158,918 - 158,918 77,460 - 77,460 Total in local currency 2,674,805 11,035,957 13,710,762 977,943 5,907,968 6,885,911 Borrowings and financing outstanding balance December 31, 2020 December 31, 2019 Financial institution Current Noncurrent Total Current Noncurrent Total Foreign currency Inter-American Development Bank - BID 1212 – US$51,390 thousand (US$61,668 thousand in December 2019) 53,412 213,649 267,061 41,428 207,140 248,568 Inter-American Development Bank - BID 2202 – (US$510,573 thousand in December 2019) - - - 128,623 1,914,298 2,042,921 Inter-American Development Bank - BID 4623 – US$10,220 thousand - 46,474 46,474 - - - International Bank of Reconstruction and Development -BIRDs 7662 e 8906 – US$82,792 thousand (US$88,871 thousand in December 2019) 31,594 393,949 425,543 24,505 330,898 355,403 Eurobonds – (US$350,000 thousand in December 2019) - - - 1,409,921 - 1,409,921 JICA 15 – ¥10,371,870 thousand (¥11,524,300 thousand in December 2019) 58,117 464,936 523,053 42,813 385,315 428,128 JICA 18 – ¥9,325,440 thousand (¥10,361,600 thousand in December 2019) 52,253 417,846 470,099 38,493 346,237 384,730 JICA 17 – ¥3,349,203 thousand (¥2,830,420 thousand in December 2019) 11,260 156,738 167,998 12,466 91,845 104,311 JICA 19 – ¥29,923,047 thousand (¥31,736,565 thousand in December 2019) 91,456 1,415,683 1,507,139 67,372 1,109,644 1,177,016 BID 1983AB – US$23,077 thousand (US$40,769 thousand in December 2019) 39,975 78,943 118,918 71,312 91,521 162,833 Interest and charges 21,577 - 21,577 44,967 - 44,967 Total in foreign currency 359,644 3,188,218 3,547,862 1,881,900 4,476,898 6,358,798 Total borrowings and financing 3,034,449 14,224,175 17,258,624 2,859,843 10,384,866 13,244,709 Exchange rate as of December 31, 2020: US$5.1967; ¥0.05043 (as of December 31, 2019: US$4.0307; ¥0.03715). As of December 31, 2020, the Company did not have balances of borrowings and financing, raised during the year, to mature within 12 months. Local currency Guarantees Maturity Annual interest rates Inflation adjustment 10th issue debentures Own funds 2020 TJLP +1.92% (Series 1 and 3) and 9.53% (Series 2) IPCA (Series 2) 12nd issue debentures Own funds 2025 TR + 9.5% 14th issue debentures Own funds 2022 TJLP +1.92% (Series 1 and 3) and 9.19% (Series 2) IPCA (Series 2) 17th issue debentures Own funds 2023 CDI +0.75% (Series 1) and 4.5% (Series 2) and4.75% (Series 3) IPCA (Series 2 and 3) 18th issue debentures Own funds 2024 TJLP 1.92 % (Series 1 and 3) and 8.25% (Series 2) IPCA (Series 2) 21st issue debentures Own funds 2022 CDI + 0.60% e CDI+ 0.90% 22nd issue debentures Own funds 2025 CDI +0.58% (Series 1) and CDI + 0.90% (Series 2) and 6.0% (Series 3) IPCA (Series 3) 23rd issue debentures Own funds 2027 CDI +0.49% (Series 1) and CDI + 0.63% (Series 2) 24th issue debentures Own funds 2029 3.20% (Series 1) and 3.37% (Series 2) IPCA (Series 1 and 2) 25th issue debentures Own funds 2021 CDI + 3.3% 26th issue debentures Own funds 2030 4.65% (series 1) and 4.95% (series 2) IPCA (series 1 and 2) 27th issue debentures Own funds 2027 CDI +1.60% (Series 1) and CDI + 1.80% (Series 2) and 2.25% (Series 3) Brazilian Federal Savings Bank Own funds 2021/2042 5% to 9.5% TR Brazilian Development Bank - BNDES PAC Own funds 2023 TJLP+1.82% Brazilian Development Bank - BNDES PAC II 9751 Own funds 2027 TJLP+1.72% Brazilian Development Bank - BNDES PAC II 9752 Own funds 2027 TJLP+1.72% Brazilian Development Bank - BNDES ONDA LIMPA Own funds 2025 TJLP+1.92% Brazilian Development Bank - BNDES TIETÊ III Own funds 2028 TJLP+1.66% Brazilian Development Bank - BNDES 2015 Own funds 2035 TJLP+2.18% Brazilian Development Bank - BNDES 2014 Own funds 2026 TJLP+1.76% Inter-American Development Bank – BID 2202 Government 2035 CDI+0.86% Inter-American Development Bank – BID INVEST Own funds 2034 CDI+1.90% and CDI+2.70% Leases (Concession Agreements, Program Contracts and Contract Assets) 2035 7.73% to 10.12% IPC Leases (Others) 2023 4.24% to 9.29% Other Own funds 2025 3% (FEHIDRO) and TJLP + 1.5% (FINEP) Foreign currency Guarantees Maturity Annual interest rates Exchange rate changes Inter-American Development Bank - BID 1212 - US$51,390 thousand Government 2025 3.31% (*) US$ Inter-American Development Bank - BID 4623 - US$10,220 thousand Government 2044 1.12% (*) US$ International Bank for Reconstruction and Development – BIRDs 7662 and 8906 - US$82,792 thousand Government 2034 2.85% (*) US$ JICA 15 – ¥10,371,870 thousand Government 2029 1.8% and 2.5% Yen JICA 18 – ¥9,325,440 thousand Government 2029 1.8% and 2.5% Yen JICA 17– ¥3,349,203 thousand Government 2035 1.2% and 0.01% Yen JICA 19– ¥29,923,047 thousand Government 2037 1.7% and 0.01% Yen BID 1983AB – US$23,077 thousand - 2023 2.08% to 2.38% (*) US$ (*)Rates comprising LIBOR + contractually defined spread. (i) Payment schedule – book value as of December 31, 2020 2021 2022 2023 2024 2025 2026 2027 to 2044 TOTAL LOCAL CURRENCY Debentures 1,952,670 582,192 681,272 918,988 485,012 378,849 1,632,114 6,631,097 Brazilian Federal Savings Bank 90,382 95,391 88,779 87,749 93,243 99,082 860,215 1,414,841 BNDES 177,470 177,472 171,350 164,288 144,093 134,841 397,591 1,367,105 BID 2202 181,349 181,349 181,349 181,349 181,349 181,349 1,618,053 2,706,147 BID INVEST 44,815 89,630 89,630 89,630 89,630 89,630 449,910 942,875 Leases (Concession Agreements, Program Contracts and Contract Assets) 28,847 32,663 35,004 38,017 41,387 36,536 216,289 428,743 Leases (Others) 36,576 8,892 408 - - - - 45,876 Other 3,778 4,038 3,977 1,757 1,610 - - 15,160 Interest and charges 159,918 - - - - - - 159,918 TOTAL IN LOCAL CURRENCY 2,674,805 1,171,627 1,251,769 1,481,778 1,036,324 920,287 5,174,172 13,710,762 FOREIGN CURRENCY BID 53,412 53,412 53,412 53,412 54,810 2,795 42,282 313,535 BIRD 31,594 31,594 31,594 31,594 31,594 31,594 235,979 425,543 JICA 213,086 213,086 213,086 213,086 213,086 213,086 1,389,773 2,668,289 BID 1983AB 39,975 39,975 38,968 - - - - 118,918 Interest and charges 21,577 - - - - - - 44,967 TOTAL IN FOREIGN CURRENCY 359,644 338,067 337,060 298,092 299,490 247,475 1,668,034 3,547,862 Overall Total 3,034,449 1,509,694 1,588,829 1,779,870 1,335,814 1,167,762 6,842,206 17,258,624 (ii) Changes December 31, 2019 Foreign/local currency translation Addition (lease) Funding Borrowing costs Monetary and exchange variation Inflation adjustment / exchange variation and incorporated interest – Capitalized Interest paid Amortization Accrued interest Provision for interest and fees – Capitalized Expenses with borrowing costs December 31, 2020 LOCAL CURRENCY Debentures 3,711,228 - - 3,507,640 (52,328) 86,939 - (161,494) (572,871) 201,150 26,073 10,167 6,756,504 Brazilian Federal Savings Bank 1,429,250 - - 74,485 - - - (111,601) (84,821) 73,067 38,452 - 1,418,832 BNDES 1,201,411 - - 213,514 - - - (47,164) (81,213) 47,668 36,427 259 1,370,902 BID 2202 - 2,807,371 - - - - - (37,613) (90,674) 22,668 27,886 557 2,730,195 BID INVEST - - - 950,000 (7,125) - - - - 1,638 - - 944,513 Leases (Concession Agreements, Program Contracts and Contract Assets) 459,671 - - - - - - (51,431) (30,928) 51,431 - - 428,743 Leases (Others) 74,453 - 28,549 - - - - (9,108) (56,571) 8,553 - - 45,876 Other 9,898 - - 7,250 - - - (671) (1,962) 651 31 - 15,197 TOTAL IN LOCAL CURRENCY 6,885,911 2,807,371 28,549 4,752,889 (59,453) 86,939 - (419,082) (919,040) 406,826 128,869 10,983 13,710,762 FOREIGN CURRENCY BIDs 2,316,190 (2,807,371) - 52,141 (6,635) 845,246 48,246 (45,010) (121,088) 10,490 24,695 398 317,302 BIRD 357,880 - - - (2,029) 102,029 1,217 (7,572) (31,216) 5,659 752 140 426,860 Eurobonds 1,413,956 - - - - 457,931 - (104,170) (1,868,676) 90,941 9,195 823 - JICA 2,106,908 - - 40,830 (117) 715,956 17,841 (43,758) (200,597) 40,172 6,897 189 2,684,321 BID 1983AB 163,864 - - - (152) 59,078 - (7,033) (103,482) 5,843 618 643 119,379 TOTAL IN FOREIGN CURRENCY 6,358,798 (2,807,371) - 92,971 (8,933) 2,180,240 67,304 (207,543) (2,325,059) 153,105 42,157 2,193 3,547,862 TOTAL 13,244,709 - 28,549 4,845,860 (68,386) 2,267,179 67,304 (626,625) (3,244,099) 559,931 171,026 13,176 17,258,624 December 31, 2018 Addition as per IFRS 16 Funding Borrowing costs Monetary variation and exchange rate changes Inflation adjustment / exchange rate changes - Capitalized Interest paid Amortization Accrued interest Provision for interest and fees - Capitalized Amortization of borrowing costs December 31, 2019 LOCAL CURRENCY Debentures 3,486,861 - 1,266,755 (11,814) 42,692 - (234,307) (1,055,623) 195,586 17,233 3,845 3,711,228 Brazilian Federal Savings Bank 1,345,684 - 162,767 - - - (109,128) (79,404) 74,421 34,910 - 1,429,250 BNDES 1,072,605 - 256,981 (628) 2,082 826 (83,419) (131,026) 60,644 23,112 234 1,201,411 Leases (Concession Agreements, Program Contracts and Contract Assets) 568,666 - - - 1,765 3,761 (47,663) (123,880) 49,160 7,862 - 459,671 Leases (Others) (*) - 113,233 - - - - (1,141) (42,646) 5,007 - - 74,453 Other 9,571 - 1,683 - 28 - (655) (1,383) 652 2 - 9,898 TOTAL IN LOCAL CURRENCY 6,483,387 113,233 1,688,186 (12,442) 46,567 4,587 (476,313) (1,433,962) 385,470 83,119 4,079 6,885,911 FOREIGN CURRENCY BID 2,399,985 - - - 40,594 49,387 (83,602) (171,892) 26,332 54,431 955 2,316,190 BIRD 356,420 - 2,540 (2,540) 12,575 1,657 (10,627) (12,273) 8,548 1,561 19 357,880 Deutsche Bank 292,872 - - - 13,255 - (18,562) (303,866) 12,929 1,240 2,132 - Eurobonds 1,358,412 - - - 54,565 - (102,883) - 94,095 8,943 824 1,413,956 JICA 2,036,128 - 117,861 (112) 104,027 3,675 (35,001) (155,064) 32,194 3,013 187 2,106,908 BID 1983AB 225,592 - - (105) 8,943 - (10,338) (71,141) 9,111 870 932 163,864 TOTAL IN FOREIGN CURRENCY 6,669,409 - 120,401 (2,757) 233,959 54,719 (261,013) (714,236) 183,209 70,058 5,049 6,358,798 Overall Total 13,152,796 113,233 1,808,587 (15,199) 280,526 59,306 (737,326) (2,148,198) 568,679 153,177 9,128 13,244,709 (*) The amount presented in Funding for Leasing (IFRS 16) includes R$ 64,955 referring to the initial adoption of the standard on January 1, 2019. December 31, 2017 Funding Borrowings costs Monetary variation and exchange rate changes Inflation adjustment / update incorporated interest - Capitalized Interest and fees paid Amortization Accrued interest Interest and fees – Capitalized (*) Borrowings costs - expenses December 31, 2018 LOCAL CURRENCY Debentures 3,576,842 750,000 (3,021) 62,676 - (259,175) (905,080) 226,810 34,409 3,400 3,486,861 Brazilian Federal Savings Bank 1,236,674 194,244 - - - (102,772) (85,515) 75,668 27,385 - 1,345,684 BNDES 1,042,036 131,000 - 3,438 4,001 (90,397) (102,314) 28,909 55,725 207 1,072,605 Leases 561,616 - - - 6,366 (38,196) (17,427) 40,290 16,017 - 568,666 Other 10,977 - - 69 - (772) (1,470) 763 4 - 9,571 TOTAL IN LOCAL CURRENCY 6,428,145 1,075,244 (3,021) 66,183 10,367 (491,312) (1,111,806) 372,440 133,540 3,607 6,483,387 FOREIGN CURRENCY BID 1,743,257 484,690 (2,365) 237,433 53,208 (55,391) (130,520) 26,910 41,878 885 2,399,985 BIRD 303,278 - - 48,279 3,462 (7,607) - 6,945 2,044 19 356,420 Deutsche Bank 496,726 - - 62,918 - (35,207) (268,508) 28,862 4,454 3,627 292,872 Eurobonds 1,158,642 - - 198,380 - (97,952) - 85,072 13,448 822 1,358,412 JICA 1,700,448 80,196 (191) 329,638 6,787 (33,519) (82,608) 33,992 1,209 176 2,036,128 BID 1983AB 270,470 - - 39,241 - (11,060) (85,306) 9,681 1,488 1,078 225,592 TOTAL IN FOREIGN CURRENCY 5,672,821 564,886 (2,556) 915,889 63,457 (240,736) (566,942) 191,462 64,521 6,607 6,669,409 Overall Total 12,100,966 1,640,130 (5,577) 982,072 73,824 (732,048) (1,678,748) 563,902 198,061 10,214 13,152,796 (*) amount related to accrued interest which as part of the contract assets. (a) Main events in 2020 (i) Funding On January 2020, the Company amortized the last installment of series 2 of the 17 th On April 2020, the 25 th Value Maturity Remuneration Single series R$ 1,450,000 10/2021 CDI + 3.3 p.a. On July 2020, the 26 th Value Maturity Remuneration Series 1 R$ 600,000 07/2027 IPCA+ 4.65% p.a. Series 2 R$ 445,000 07/2030 IPCA+ 4.95% p.a. On December 2020, the 27 th Value Maturity Remuneration Series 1 R$ 300,000 12/2023 CDI+ 1,60 p.a. Series 2 R$ 400,000 12/2025 CDI+ 1,80 p.a. Series 3 R$ 300,000 12/2027 CDI+ 2,25 p.a. The covenants agreed for the 25 th th th Calculated on a quarterly basis, when disclosing the interim financial information or annual financial statements: - Net debt/adjusted EBITDA lower than or equal to 3.50; - Adjusted EBITDA/paid financial expenses equal to or higher than 1.5; - Disposal of operating assets, termination of license, loss of concession or loss of the Issuer’s capacity to execute and operate public sanitation services in areas of the São Paulo State which, individually or jointly during the term of the agreement, result in a reduction of the Issuer’s net sales and/or service revenue of more than twenty- five percent (25%). The above limit will be calculated on a quarterly basis, taking into consideration the Issuer’s net operating revenues during the twelve (12) months prior to the end of each quarter and using the financial information disclosed by the Issuer. The failure to comply with the covenants for at least two consecutive quarters, or for two non-consecutive quarters within a twelve-month period, will cause the early termination of the agreement (in which case the 30-day cure period does not apply). The contracts have a cross acceleration clause, i.e. the early maturity of any of the Company’s debts, in and individual or aggregate amount equal to or higher than R$ 155 million, for the 25 th th th (ii) BID On May 2020, the company exchanged foreign currency for local currency related to BID 2202 contract, in the amount of R$ 2,810,907 (US$ 494,617 thousand) using the exchange rate of R$ 5.683 to compose the debt balance. The interest rate is CDI + 0.86% p.a., with semi-annual payment of principal and interest, beginning on September 3, 2020. On December 2020, BID INVEST was raised, in the amount of R$ 950,000, as follows: Value Maturity Remuneration Tranche – Medium Term R$ 442,000 08/2029 CDI+ 1.90 p.a. Tranche - Long Term R$ 508,000 08/2034 CDI+ 2.70 p.a. The covenants agreed for the BID INVEST are: - Net debt/adjusted EBITDA lower than or equal to 3.50; - Adjusted EBITDA/paid financial expenses equal to or higher than 2.35; The Company should maintain for two (2) consecutive quarters or not, for any four (4) consecutive quarters. (iii) Eurobonds As of September 30, 2020, the early full amortization of the loan, in the amount of R$ 1,910,124 (US$ 357,763 thousand), referring to principal plus charges, initially maturing in December 2020, was carried out. (b) Leases The Company has work service agreements which includes specific assets under lease terms. During the construction period, works are capitalized to intangible assets in progress and the lease amount is recorded at the same proportion. After startup, the lease payment period starts (240 monthly installments), whose amount is periodically restated by contracted price index. The amounts payable for the right of use of assets are also recorded in this line (Note 15 (j)). (c) Financial commitments - Covenants The table below shows the more restrictive covenants ratios as of December 31, 2020. Restrictive Ratios Adjusted EBITDA / Adjusted Financial Expenses Equal to or higher than 2.80 Adjusted Net Debt / Adjusted EBITDA Equal to or lower than 3.80 Adjusted Total Debt / Adjusted EBITDA Lower than 3.65 Other Onerous Debt (1) Equal to or lower than 1.30 Adjusted Current Ratio Higher than 1.00 EBITDA / Paid Financial Expenses Equal to or higher than 2.35 Net Debt / Adjusted EBITDA Equal to or lower than 3.50 (1) “Other Onerous Debts” correspond to the sum of pension obligations and health care plan, installment payment of tax debts and installment payment of debts with the electricity supplier. As of December 31, 2020 and 2019, the Company met the financial debt covenants as set forth by its borrowing and financing agreements. (d) Borrowings and financing – Credit Limits Agent December 31, 2020 (in millions of reais (*)) Brazilian Federal Savings Bank 1,485 Brazilian Development Bank – BNDES 708 Japan International Cooperation Agency – JICA 85 Inter-American Development Bank – BID 1,506 International Bank for Reconstruction and Development - IBRD 1,296 Other 51 TOTAL 5,131 (*) Brazilian Central Bank’s exchange sell rate as of December 30, 2020 (US$ 1.00 = R$ 5.1967; ¥ 1.00 = R$ 0.05043). Financing resources contracted have specific purposes, which have been released for the execution of their respective investments, according to the progress of the works. |
18 Taxes recoverable_payable
18 Taxes recoverable/payable | 12 Months Ended |
Dec. 31, 2020 | |
Taxes Recoverablepayable | |
Taxes recoverable/payable | 18 Taxes recoverable/payable (a) Current assets December 31, 2020 December 31, 2019 Recoverable taxes Income tax and social contribution - 136,436 Withholding income tax (IRRF) on financial investments 4,391 1,359 Other federal taxes 18,281 3,471 Total 22,672 141,266 (b) Current liabilities December 31, 2020 December 31, 2019 Taxes and contributions payable Income tax and social contribution 69,041 - Cofins and Pasep 92,601 94,027 INSS (social security contribution) 37,599 39,404 IRRF (withholding income tax) 21,287 69,932 Other 45,291 46,955 Total 266,819 250,318 |
19 Deferred taxes and contribut
19 Deferred taxes and contributions | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Taxes And Contributions | |
Deferred taxes and contributions | 19 Deferred taxes and contributions (a) Statement of financial position details December 31, 2020 December 31, 2019 Deferred income tax assets Provisions 436,445 366,673 Pension obligations - G1 154,498 157,998 Donations of underlying asset on concession agreements 50,142 51,818 Credit losses 155,719 145,622 Other 134,932 183,147 Total deferred tax assets 931,736 905,258 Deferred income tax liabilities Temporary difference on concession of intangible asset (388,675) (408,732) Capitalization of borrowing costs (390,211) (409,236) Profit on supply to government entities (356,513) (372,289) Actuarial gain/loss – G1 Plan (48,979) (54,222) Construction margin (48,843) (83,399) Borrowing costs (19,231) (11,376) Total deferred tax liabilities (1,252,452) (1,339,254) Deferred tax assets (liabilities), net (320,716) (433,996) (b) Realization December 31, 2020 December 31, 2019 Deferred income tax assets to be realized within 12 months 263,580 189,740 to be realized after one year 668,156 715,518 Total deferred tax asset 931,736 905,258 Deferred income tax liabilities to be realized within 12 months (31,388) (35,954) to be realized after one year (1,221,064) (1,303,300) Total deferred tax liabilities (1,252,452) (1,339,254) Deferred tax liability (320,716) (433,996) (c) Changes Deferred income tax assets December 31, Net change December 31, Provisions 366,673 69,772 436,445 Pension obligations - G1 157,998 (3,500) 154,498 Donations of underlying asset on concession agreements 51,818 (1,676) 50,142 Credit losses 145,622 10,097 155,719 Other 183,147 (48,215) 134,932 Total 905,258 26,478 931,736 Deferred income tax liabilities Temporary difference on concession of intangible asset (408,732) 20,057 (388,675) Capitalization of borrowing costs (409,236) 19,025 (390,211) Profit on supply to governmental entities (372,289) 15,776 (356,513) Actuarial (gain)/loss – G1 (54,222) 5,243 (48,979) Construction margin (83,399) 34,556 (48,843) Borrowing costs (11,376) (7,855) (19,231) Total (1,339,254) 86,802 (1,252,452) Deferred tax liabilities, net (433,996) 113,280 (320,716) Deferred income tax assets December 31, 2018 Net change December 31, 2019 Provisions 337,833 28,840 366,673 Pension obligations - G1 157,044 954 157,998 Donations of underlying asset on concession agreements 54,131 (2,313) 51,818 Credit losses 197,920 (52,298) 145,622 Other 186,887 (3,740) 183,147 Total 933,815 (28,557) 905,258 Deferred income tax liabilities Temporary difference on concession of intangible asset (433,842) 25,110 (408,732) Capitalization of borrowing costs (420,978) 11,742 (409,236) Profit on supply to governmental entities (206,978) (165,311) (372,289) Actuarial (gain)/loss – G1 (36,430) (17,792) (54,222) Construction margin (86,164) 2,765 (83,399) Borrowing costs (10,665) (711) (11,376) Total (1,195,057) (144,197) (1,339,254) Deferred tax assets (liabilities), net (261,242) (172,754) (433,996) Deferred income tax assets December 31, 2017 Net change December 31, 2018 Provisions 482,863 (145,030) 337,833 Pension obligations - G1 165,503 (8,459) 157,044 Donations of underlying asset on concession agreements 55,112 (981) 54,131 Credit losses 199,063 (1,143) 197,920 Other 151,562 35,325 186,887 Total 1,054,103 (120,288) 933,815 Deferred income tax liabilities Temporary difference on concession of intangible asset (460,177) 26,335 (433,842) Capitalization of borrowing costs (415,379) (5,599) (420,978) Profit on supply to governmental entities (76,705) (130,273) (206,978) Actuarial (gain)/loss – G1 (36,538) 108 (36,430) Construction margin (88,947) 2,783 (86,164) Borrowing costs (13,111) 2,446 (10,665) Total (1,090,857) (104,200) (1,195,057) Deferred tax assets (liabilities), net (36,754) (224,488) (261,242) December 31, 2020 December 31, 2019 December 31, 2018 Opening balance (433,996) (261,242) (36,754) Net change in the year: - corresponding entry to the income statement 108,037 (154,962) (224,596) - corresponding entry to valuation adjustments to equity (Note 21 (b)) 5,243 (17,792) 108 Total net change 113,280 (172,754) (224,488) Closing balance (320,716) (433,996) (261,242) (d) Reconciliation of the effective tax rate The amounts recorded as income tax and social contribution expenses in the financial statements are reconciled to the statutory rates, as shown below: December 31, 2020 December 31, 2019 December 31, 2018 Profit before income taxes 1,326,002 4,677,942 3,912,319 Statutory rate 34% 34% 34% Estimated expense at statutory rate (450,841) (1,590,500) (1,330,186) Tax benefit of interest on equity 126,604 312,339 264,816 Permanent differences Provision – Law 4,819/1958 – G0 (i) (37,675) (44,426) (46,544) Donations (8,672) (19,888) (13,068) Other differences 17,900 32,050 47,731 Income tax and social contribution (352,684) (1,310,425) (1,077,251) Current income tax and social contribution (460,721) (1,155,463) (852,655) Deferred income tax and social contribution 108,037 (154,962) (224,596) Effective rate 27% 28% 28% (i) Permanent difference related to the provision for actuarial liability (Note 21 (b) (ii)). |
20 Provisions
20 Provisions | 12 Months Ended |
Dec. 31, 2020 | |
Provisions [abstract] | |
Provisions | 20 Provisions (a) Lawsuits and proceedings that resulted in provisions (I) Statement of financial position details The Company is party to a number of legal claims and administrative proceedings arising from the normal course of business, including civil, tax, labor and environmental matters. Management recognizes provisions in the financial statements consistently with the recognition and measurement criteria established in Note 3.14. The ultimate timing and amounts of the payments depends on the outcome of the court cases. December 31, 2020 December 31, 2019 Provisions Escrow deposits Provisions net of deposits Provisions Escrow deposits Provisions net of deposits Customer claims (i) 160,705 (10,553) 150,152 253,665 (9,973) 243,692 Supplier claims (ii) 410,734 (358) 410,376 153,654 (298) 153,356 Other civil claims (iii) 86,083 (2,505) 83,578 93,910 (16,496) 77,414 Tax claims (iv) 59,678 (2,410) 57,268 59,143 (3,518) 55,625 Labor claims (v) 316,880 (15,503) 301,377 325,129 (12,329) 312,800 Environmental claims (vi) 249,582 (31) 249,551 192,950 (29) 192,921 Total 1,283,662 (31,360) 1,252,302 1,078,451 (42,643) 1,035,808 Current 760,209 - 760,209 550,247 - 550,247 Noncurrent 523,453 (31,360) 492,093 528,204 (42,643) 485,561 (II) Changes December 31, 2019 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used (reversal) December 31, 2020 Customer claims (i) 253,665 16,465 19,638 (78,640) (50,423) 160,705 Supplier claims (ii) 153,654 149,566 201,259 (68,801) (24,944) 410,734 Other civil claims (iii) 93,910 15,944 11,109 (23,009) (11,871) 86,083 Tax claims (iv) 59,143 4,333 2,737 (1,875) (4,660) 59,678 Labor claims (v) 325,129 61,782 35,541 (61,039) (44,533) 316,880 Environmental claims (vi) 192,950 35,392 27,718 - (6,478) 249,582 Subtotal 1,078,451 283,482 298,002 (233,364) (142,909) 1,283,662 Escrow deposits (42,643) (12,907) (2,225) 18,675 7,740 (31,360) Total 1,035,808 270,575 295,777 (214,689) (135,169) 1,252,302 December 31, 2018 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used (reversal) December 31, 2019 Customer claims (i) 290,649 57,314 53,929 (99,379) (48,848) 253,665 Supplier claims (ii) 67,985 54,223 102,686 (42,948) (28,292) 153,654 Other civil claims (iii) 98,302 28,888 18,713 (9,766) (42,227) 93,910 Tax claims (iv) 63,335 11,821 2,918 (4,982) (13,949) 59,143 Labor claims (v) 302,935 167,995 61,483 (112,084) (95,200) 325,129 Environmental claims (vi) 170,419 42,198 24,358 (312) (43,713) 192,950 Subtotal 993,625 362,439 264,087 (269,471) (272,229) 1,078,451 Escrow deposits (100,763) (14,051) (11,844) 19,191 64,824 (42,643) Total 892,862 348,388 252,243 (250,280) (207,405) 1,035,808 December 31, 2017 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used (reversal) December 31, 2018 Customer claims (i) 438,619 29,732 40,749 (141,421) (77,030) 290,649 Supplier claims (ii) 332,037 36,100 21,161 (308,253) (13,060) 67,985 Other civil claims (iii) 114,544 22,578 12,939 (16,146) (35,613) 98,302 Tax claims (iv) 77,100 10,763 4,157 (2,490) (26,195) 63,335 Labor claims (v) 299,842 83,499 32,290 (44,900) (67,796) 302,935 Environmental claims (vi) 160,446 33,392 18,294 (115) (41,598) 170,419 Subtotal 1,422,588 216,064 129,590 (513,325) (261,292) 993,625 Escrow deposits (344,384) (53,205) (5,533) 269,248 33,111 (100,763) Total 1,078,204 162,859 124,057 (244,077) (228,181) 892,862 (b) Lawsuits deemed as contingent liabilities The Company is party to lawsuits and administrative proceedings relating to environmental, tax, civil and labor claims, which are assessed as contingent liabilities in the financial statements, since it either does not expect outflows to be required or the amount of the obligation cannot be reliably measured. Contingent liabilities, net of escrow deposits, are represented as follows: December 31, 2020 December 31, 2019 Customer claims (i) 110,508 86,061 Supplier claims (ii) 1,350,308 1,986,736 Other civil claims (iii) 758,800 679,623 Tax claims (iv) 1,253,636 1,184,811 Labor claims (v) 1,005,648 631,364 Environmental claims (vi) 5,981,837 4,864,894 Total 10,460,737 9,433,489 (c) Explanation on the nature of main classes of lawsuits (i) Customer claims Approximately 690 lawsuits (680 as of December 31, 2019) were filed by commercial customers, who claim that their tariffs should correspond to other consumer categories, and 310 lawsuits (320 as of December 31, 2019) in which customers claim a reduction in the sewage tariff due to losses in the system, consequently requesting the refund of amounts charged by the Company and 30 lawsuits (30 as of December 31, 2019) in which customers plead the reduction in tariff under the category as “Social Welfare Entity”. The R$ 93,540 decrease in the lawsuits deemed as contingent liabilities was mainly due to the revisions of expectations arising from court decisions in the period. (ii) Supplier claims These lawsuits include lawsuits filed by some suppliers alleging underpayment of monetary restatements and the economic and financial imbalance of the agreements, and are in progress at different courts. The R$ 257,020 increase in accrued lawsuits was mainly due to revisions of expectations arising from court decisions in the period. The R$ 636,428 decrease in lawsuits deemed as contingent liabilities is mainly due to updates and revisions of expectations arising on lawsuits in progress. (iii) Other civil claims These mainly refer to indemnities for property damage, pain and suffering, and loss of profits allegedly caused to third parties, such as vehicle accidents, claims, challenges on the methodology to collect tariffs, among others, filed at different court levels. (iv) Tax claims Tax claims refer mainly to issues related to tax collections and fines in general challenged due to disagreements regarding notification or differences in the interpretation of legislation by the Company's Management, that were accrued and others that were deemed as contingent liabilities. The R$ 68,825 increase in lawsuits deemed as contingent liabilities was mainly due to updates and revisions of expectations arising on lawsuits in progress. The municipality of São Paulo, through law, revoked the services tax exemption which until then the company withheld and thereafter issued tax deficiency notices related to the sewage service and ancillary activities, in the updated amount of R$ 731,809 (R$ 664,669 as of December 31, 2019), which currently are subject-matter of three Tax Foreclosures. SABESP filed a writ of mandamus against this revocation, which was rejected. Writs of prevention and actions for annulment were also filed, aiming the suspension of enforceability of credits and the annulment of tax deficiency notices, as it understands that notwithstanding the exemption revocation, the sewage activities and ancillary activities are not included in the list of activities subject to taxation by municipality. The appellate decision was favorable to the Company. The Municipality’s special and extraordinary appeal is still pending. The Company deemed the proceeding as contingent liability. (v) Labor claims The Company is a party to a number of labor lawsuits, involving issues such as overtime, shift schedule, health hazard premium and hazardous duty premium, prior notice, change of function, salary equalization, service outsourcing and other, which are at various court levels. The R$ 374,284 increase in lawsuits deemed as contingent liabilities was mainly due to updates and revisions of expectations arising on lawsuits in progress. (vi) Environmental claims These refer to several administrative proceedings and lawsuits filed by government entities, including Companhia Ambiental do Estado de São Paulo – CESTESB and the Public Prosecution Office of the State of São Paulo, that aim affirmative and negative covenants and penalty is estimated due to failure to comply in addition to the imposition of indemnity due to environmental damages allegedly caused by the Company. The R$ 56,630 increase in accrued lawsuits are mainly due to revisions of expectations arising from court decisions in the period. The 1,116,943 increases in lawsuits deemed as contingent liabilities, are mainly due to updates and revision of estimates on lawsuits in progress in the period. Among the main lawsuits the Company is involved, there are public civil actions the subject-matters of which are: a) sentence SABESP to restrain itself from discharging or releasing sewage without due treatment; b) invest in the water and sewage treatment system of the municipality, under the penalty of paying a fine; c) payment of indemnity due to environmental damages, amongst others. (d) Other concession-related legal proceedings The Company is a party to concessions-related legal proceedings, where it challenges compensatory issues for the resumption of sanitation services by some municipalities or by the right to continue operating said services. The amount recorded as indemnities receivable in noncurrent assets, referring to municipalities of Cajobi, Macatuba, Álvares Florence, Embaúba, Araçoiaba da Serra and Itapira was R$ 27,539 as December 31, 2020 (R$ 114,335 as of December 31, 2019), with allowance for doubtful accounts in the full amount recorded. None of the above-mentioned municipalities are operated by the Company. When a municipality is awarded a final an unappealable favorable sentence, allowing it to repossess sanitation service assets and operations, the Brazilian legislation provides for the indemnity of the Company’s investments. (e) Environmental lawsuits with settlements In 2020, the Company executed a consent decree in the amount of R$ 272,055. Of this amount, R$ 270,505 corresponds to the performance of works and R$ 1,550 to environmental compensations, the latter being recorded as “other liabilities”. (f) Guarantee insurance for escrow deposit On May 25, 2020, the Company renewed the insurance for policy issuance, thus contracting guarantee insurance for escrow deposit, in the amount of R$ 500.0oo, for one year. Such insurance will be used to settle legal claims instead of having immediate cash disbursement by the Company, such insurance is used until the conclusion of these proceedings limited to up to five years. In 2020, the Company used R$ 121,469 of the guarantee insurance (R$ 126,385 in 2019), of which R$ 81,635 from the current contract with an outstanding amount of R$ 418,365 from the current contract. |
21 Employees benefits
21 Employees benefits | 12 Months Ended |
Dec. 31, 2020 | |
Employees Benefits | |
Employees benefits | 21 Employees benefits (a) Health plan – Medical Assistance Since August 1, 2019, the new health plans managed by Fundação CESP (VIVEST), which replaced the previous health plans managed by SABESPREV, have been in effect. Benefits are now paid after the event, free of choice, sponsored by contributions of SABESP and the employees is as follows: Company: 7.79% (December 31, 2019 – 9.3%) on average, of gross payroll, totaling R$ 212,681 in 2019 (R$ 237,898 in 2019). (b) Pension plan liabilities The Company has Post-Employment Benefit Plans in the following modalities: Defined Benefit (BD) – G1 (i) and G0 (ii); Defined Contribution (CD) – Sabesprev Mais (iii) and VIVEST (iv). The reconciliation of costs and expenses with such plans is shown in item (v). Statements of defined benefit plans Summary of pension obligations – Liabilities December 31, 2020 December 31, 2019 G1 Plan G0 Plan Total G1 Plan G0 Plan Total Present value of the defined benefit obligations (3,112,980) (2,549,541) (5,662,521) (3,067,094) (3,046,255) (6,113,349) Fair value of the plan’s assets 2,793,927 - 2,793,927 2,752,417 - 2,752,417 Total pension plan liabilities (deficit) (319,053) (2,549,541) (2,868,594) (314,677) (3,046,255) (3,360,932) Changes in Liabilities December 31, 2020 December 31, 2019 G1 Plan G0 Plan Total G1 Plan G0 Plan Total Plan’s liabilities Defined benefit obligation, beginning of the year (3,067,094) (3,046,255) (6,113,349) (2,532,338) (2,606,107) (5,138,445) Current service cost (40,404) - (40,404) (47,001) (227,367) (274,368) Interest costs (208,485) (206,262) (414,747) (224,429) - (224,429) Actuarial (gains)/losses recorded as other comprehensive income 64,637 521,331 585,968 (392,876) (397,597) (790,473) Benefits paid 138,366 181,645 320,011 129,550 184,816 314,366 Defined benefit obligation, end of the year (3,112,980) (2,549,541) (5,662,521) (3,067,094) (3,046,255) (6,113,349) Plan’s assets Fair value of the plan’s assets, beginning of the year 2,752,417 - 2,752,417 2,168,436 - 2,168,436 Expected return of the plan’s assets 187,317 - 187,317 192,965 - 192,965 Company’s contributions 36,010 - 36,010 36,968 - 36,968 Participant’s contributions 36,608 - 36,608 38,391 - 38,391 Benefits paid (138,366) - (138,366) (129,549) - (129,549) Actuarial gains/(losses) recorded as other comprehensive income (80,059) - (80,059) 445,206 - 445,206 Fair value of the plan’s assets, end of the year 2,793,927 - 2,793,927 2,752,417 - 2,752,417 Total pension plan liabilities (deficit) (319,053) (2,549,541) (2,868,594) (314,677) (3,046,255) (3,360,932) Changes in equity - Other comprehensive income Pursuant to IAS19, the Company recognizes gains/(losses), from changes in actuarial assumptions under equity, such as equity valuation adjustments, as shown below: December 31, 2020 December 31, 2019 December 31, 2018 G1 Plan G0 Plan Total G1 Plan G0 Plan Total G1 Plan G0 Plan Total Actuarial gains/(losses) on obligations 64,637 521,331 585,968 (392,876) (397,597) (790,473) (114,188) (10,783) (124,971) Actuarial gains/(losses) recorded as other comprehensive income (80,059) - (80,059) 445,206 - 445,206 113,869 - 113,869 Total gains/(losses) (15,422) 521,331 505,909 52,330 (397,597) (345,267) (319) (10,783) (11,102) Deferred income tax and social contribution 5,243 - 5,243 (17,792) - (17,792) 108 - 108 Equity valuation adjustments (10,179) 521,331 511,152 34,538 (397,597) (363,059) (211) (10,783) (10,994) The amounts recognized in the year are as follows: December 31, 2020 December 31, 2019 December 31, 2018 G1 Plan G0 Plan Total G1 Plan G0 Plan Total G1 Plan G0 Plan Total Cost of service, net 4,608 - 4,608 8,609 227,367 235,976 (22,431) 232,248 209,817 Interest cost rates 208,485 206,262 414,747 224,429 - 224,429 213,201 - 213,201 Expected return on the plan’s assets (187,317) - (187,317) (192,965) - (192,965) (179,449) - (179,449) Amount received from State of São Paulo (undisputed) - (95,452) (95,452) - (97,300) (97,300) - (96,282) (96,282) Total expenses 25,776 110,810 136,586 40,073 130,067 170,140 11,321 135,966 147,287 Obligations’ maturity: December 31, 2020 G1 Plan G0 Plan Payment of benefits expected in 2021 177,347 169,178 Payment of benefits expected in 2022 172,477 167,263 Payment of benefits expected in 2023 167,906 164,426 Payment of benefits expected in 2024 162,648 160,721 Payment of benefits expected in 2025 or after 2,432,602 1,887,953 Total 3,112,980 2,549,541 Duration 11.88 years 9.40 years Actuarial assumptions: December 31, 2020 December 31, 2019 December 31, 2018 G1 Plan G0 Plan G1 Plan G0 Plan G1 Plan G0 Plan Discount rate – actual rate (NTN-B) 3.44% p.a. 3.07% p.a. 3.37% p.a. 3.36% p.a. 4.91% p.a. 4.84% p.a. Inflation rate 3.25% p.a. 3.25% p.a. 3.5% p.a. 3.5% p.a. 4.01% p.a. 4.01% p.a. Nominal rate of salary growth 5.32% p.a. 5.32% p.a 5.57% p.a. 5.57% p.a 6.09% p.a. 6.09% p.a Mortality table AT-2000 AT-2000 AT-2000 AT-2000 AT-2000 AT-2000 Sensitivity analysis Sensitivity analysis of the defined benefit pension plan as of December 31, 2020 regarding the changes in the main assumptions are: Impact on the present value of the defined benefit obligations Assumptions Change in the assumption G1 G0 Discount rate Increase of 1.0% Decrease of R$ 322,111 Decrease of R$ 214,482 Decrease of 1.0% Increase of R$ 388,571 Increase of R$ 249,611 Life expectation Increase of 1 year Increase of R$ 83,576 Increase of R$ 135,263 Decrease of 1 year Decrease of R$ 75,824 Decrease of R$ 118,909 Wage growth rate Increase of 1.0% Increase of R$ 29,598 Increase of R$ 310,103 Decrease of 1.0% Decrease of R$ 25,173 Decrease of R$ 271,853 (i) G1 Plan Managed by Sabesprev, the defined benefit plan (“G1 Plan”), closed to new adhesions since July 2010, receives similar contributions established in a plan of subsidy of actuarial study of Sabesprev, as follows: 0.99% of the portion of the salary of participation up to 20 salaries; and 8.39% of the surplus, if any, of the portion of the salary of participation over 20 salaries. The active participants as of December 31, 2020 totaled 3,512 (3,758 as of December 31, 2019), while inactive participants were 7,580 (7,399 as of December 31, 2019). The contributions of the Company and participants of the G1 Plan in 2020 were R$ 36,009 (R$ 36,968 in 2019) and R$ 36,608 (R$ 38,391 in 2019), respectively. Of this amount, the Company and the participants’ payments corresponding to the actuarial deficit of the G1 pension plan totaled R$ 26,326 and R$ 26,895, respectively, in 2020. Estimated expenses for the comig year 2021 Cost of services, net 2,226 Interest costs 205,707 Net profitability on financial assets (184,687) Expenditures to be recognized by the employer 23,246 Plan’s assets The plan’s investment policies and strategies are aim at getting consistent returns and reduce the risks associated to the utilization of financial assets available on the Capital Markets through diversification, considering factors, such as the liquidity needs and the long-term nature of the plan liability, types and availability of financial instruments in the local and international markets, general economic conditions and forecasts as well as requirements under the law. The plan's asset allocation management strategies are determined with the support of reports and analysis prepared by Sabesprev and independent financial advisors: December 31, 2020 % December 31, 2019 % Total fixed income 1,811,164 64.8 1,795,554 65.2 Total equities 311,958 11.2 301,707 11.0 Total structured investments 575,943 20.6 630,933 22.9 Other 94,862 3.4 24,223 0.9 Fair value of the plan’s assets 2,793,927 100 2,752,417 100 Restrictions with respect to asset portfolio investments, in the case of federal government securities: i) instruments securitized by the National Treasury will not be permitted; ii) derivative instruments must be used for hedge. Restrictions with respect to asset portfolio investments, in the case of variable-income securities for internal management, are as follows: i) day-trade operations will not be permitted; ii) sale of uncovered share is prohibited; iii) swap operations without guarantee are prohibited iv) leverage will not be permitted, i.e., operations with derivatives representing leverage of asset or selling short, such operations cannot result in losses higher than invested amounts. As of December 31, 2020, Sabesprev did not have financial assets issued by the Company in its own portfolio; however, said assets could have been part of the investment fund portfolio invested by the Foundation. The real estate held in the portfolio is not used by the Company. (ii) G0 Plan Pursuant to State Law 4,819/1958, employees who started providing services prior to May 1974 and retired as an employee of the Company acquired a legal right to receive supplemental pension payments, which rights are referred as "G0 Plan ". The Company pays these supplemental benefits on behalf of the State of São Paulo and makes claims for reimbursements from the State Government, which are recorded as accounts receivable from related parties, limited to the amounts considered virtually certain that will be reimbursed by the State of São Paulo. The number of active participants of Plan - Go as of December 31, 2020 and 2019 was 10. The number of beneficiaries, retirees and survivors as of December 31, 2020 was 1,862 (1,960 as of December 31, 2019). Estimated expenses for 2021 2021 Interest cost rate 158,214 Expense to be recognized 158,214 (iii) Sabesprev Mais Plan As of December 31, 2020, this Defined Contribution Plan administered by Sabesprev had 9,587 active and assisted participants (9,774 as of December 31, 2019). With respect to the Sabesprev Mais plan, the contributions from the sponsor represent 100% over the total basic contribution from the participants. (iv) VIVEST Since December 31, 2019, the Sabesprev Mais Plan has not been accepting any new adhesions and, since January 1, 2020, new employees have the option to enroll in Fundação CESP’s Defined Contribution Plan (VIVEST), as well as those who did not enroll in the Sabesprev Mais Plan. As of December 31, 2020, it had 24 participants. (v) Reconciliation of expenses with pension obligations December 31, 2020 December 31, 2019 December 31, 2018 G1 Plan 25,776 40,073 11,321 G0 Plan 110,810 130,067 135,966 Sabesprev Mais Plan 21,700 22,461 20,761 VIVEST Plan 58 - - Subtotal 158,344 192,601 168,048 Expenses capitalized in assets (4,904) (6,022) (5,214) Other 5,841 8,040 7,592 Pension plan obligations (Note 29) 159,281 194,619 170,426 (c) Profit sharing The profit sharing program was implemented in accordance with an agreement with the labor union. Payment corresponds to up to one-month salary for each employee, depending on performance of goals reached from January to December, and should be paid in April of the subsequent year. From January to December 2020 and 2019, R$ 90,980 and R$ 93,486, respectively, were accrued under “Salaries, payroll charges and social contributions”, in current liabilities. |
22 Services payable
22 Services payable | 12 Months Ended |
Dec. 31, 2020 | |
Services Payable | |
Services payable | 22 Services payable The services account records the balances payable, mainly from services received from third parties, such as supply of electric power, reading of hydrometers and delivery of water and sewage bills, cleaning, surveillance and security services, collection, legal counsel services, audit, marketing and advertising and consulting services, among others. This account also includes the amounts payable to the Municipal Fund of Environmental Sanitation and Infrastructure based on a percentage of the revenues from São Paulo municipal government (Note 15 (c) (v) (6)). The balances as of December 31, 2020 and 2019 were R$ 453,750 and R$ 474,078, respectively. |
23 Knowledge Retention Program
23 Knowledge Retention Program | 12 Months Ended |
Dec. 31, 2020 | |
Knowledge Retention Program | |
Knowledge Retention Program | 23 Knowledge Retention Program In June 2018, SABESP implemented the Knowledge Retention Program (PRC), which was expected to end in December 2020, aiming to provide personnel planning conditions and mitigate the impact of the exit of employees who possess strategic knowledge acquired throughout their career. For those enrolled in the Program, the compliance with the agreements of the Collective Bargaining Agreement effective on the date of termination is thereby guaranteed. They will also receive a severance incentive proportional to the length of service at SABESP, corresponding to a percentage of the balance of the Guarantee Fund for Length of Service (FGTS), for termination purposes, on the date of termination. As of December 31, 2020, the total balance was R$ 3,975 in current liabilities (as of December 31, 2019 - R$ 153,377), recorded under “Salaries, payroll charges and social contributions”, in current liabilities, referring to absent employees who will be dismissed in due course. |
24 Equity
24 Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity | |
Equity | 24 Equity (a) Share capital As of December 31, 2020, and 2019, the authorized, subscribed and paid-in capital, in the amount of R$ 15,000.000, was composed of 683,509,869 registered, book-entry common shares with no par value, as follows: December 31, 2020 December 31, 2019 Number of shares % Number of shares % State Department of Finance (1) 343,507,729 50.26 343,524,285 50.26 Other shareholders In Brazil (2) 254,868,646 37.29 236,161,929 34.55 Abroad (3) (4) 85,133,494 12.45 103,823,655 15.19 683,509,869 100.00 683,509,869 100.00 (1) There is a lawsuit with a mandatory injunction filed under number 1051534-40.2019.8.26.0053 pending at the 7 th (2) As of December 31, 2020, the common shares traded in Brazil were held by 40,399 shareholders. It includes six shares held by Companhia Paulista de Parcerias (CPP), which is controlled by the São Paulo State Government (3) Shares traded as American Depositary Receipts (ADR) on the New York Stock Exchange, through The Bank New York Mellon, the depositary bank for the Company's ADRs. (4) Each ADR corresponds to 1 share. (b) Distribution of earnings Shareholders are entitled to a minimum mandatory dividend of 25% of the adjusted net income under Brazilian GAAP, calculated according to the Brazilian corporate law. The dividends do not bear interest and the amounts not claimed within three years from the date of the Shareholders' Meeting that approved them mature in favor of the Company. 2020 2019 2018 Profit for the year 973,318 3,367,517 2,835,068 (-) Legal reserve - 5% 48,666 168,376 141,755 924,652 3,199,141 2,693,313 Minimum mandatory dividend – 25% 231,163 799,785 673,328 Dividend per share and per ADS 0.33820 1.17012 0.9851 On April 28, 2020, the Shareholders’ General Meeting approved the distribution of dividends as interest on capital amounting to R$ 141,203, for the 2019 fiscal year. Therefore, the amount of R$ 80,973 related to the surplus minimum mandatory dividends of 25%, set forth in the Bylaws, recorded in the 2019 equity under “Additional proposed dividends” was transferred to current liabilities. These amounts started being paid in May 2020. The Company proposed dividends as interest on capital ad referendum The Company charged interest on capital to minimum dividends by its net withholding income tax. The amount of R$ 14,430 (R$ 60,230 in 2019) referring to withholding income tax was recognized in current liabilities, in order to comply with tax liabilities related to the credit of interest on capital. The balance payable of interest on capital as of December 31, 2020 of R$ 231,611 (R$ 800,352 in 2019) refers to the amount of R$ 231,163 (R$ 799,785 in 2019) declared in 2020, net of withholding income tax and R$ 448 declared in prior years (R$ 567 in 2019). (c) Legal reserve Earnings reserve - legal reserve: created by allocating 5% of the net income for the year up to the limit of 20% of the share capital. The Company may not create the legal reserve in the year in which the balance of this reserve, plus the amount of the capital reserves, exceeds 30% of the share capital. The purpose of the legal reserve is to ensure the integrity of the share capital. It can only be used to offset losses or increase capital, but not to pay dividends. (d) Investments reserve Earnings reserve - investments reserve is specifically formed by the portion corresponding to own funds assigned to the expansion of the water supply and sewage treatment systems, based on capital budget approved by the Management. As of December 31, 2020 and 2019, the balance of investment reserve totaled R$ 6,751,258 and R$ 6,098,575, respectively. Pursuant to paragraph four of article 28 of the by-laws, the Board of Directors may propose to the Shareholders’ Meeting that the remaining balance of profit for the year, after deducting the legal reserve and minimum mandatory dividends, be allocated to an investment reserve that will comply with the following criteria: I- its balance, jointly with the balance of the other earnings reserves, except for reserves for contingencies and realizable profits, may not exceed the capital stock; II- the reserve is intended to guarantee the investment plan and its balance may be used: a) to absorb losses, whenever necessary; b) to distribute dividends, at any moment; c) in share redemption, reimbursement or purchase transactions authorized by law; d) in incorporation to the capital stock. (e) Allocation of the profit for the year 2020 2019 2018 Profit (+) Profit for the year 973,318 3,367,517 2,835,068 (-) Legal reserve – 5% 48,666 168,376 141,755 (-) Minimum mandatory dividends 231,163 799,785 673,328 (-) Additional proposed dividends 40,806 141,203 118,859 Investment reserve recorded 652,683 1,901,126 2,258,153 Management will send for approval at the Shareholders’ Meeting, a proposal to reallocate retained earnings the amount of R$ 652,683 to the Investment Reserve account, in order to meet the investment needs foreseen in the Capital Budget. (f) Retained earnings Retained earnings (accumulated losses): the statutory balance of this account is zero as all retained earnings must be distributed or allocated to an earnings reserve. (g) Other comprehensive loss Gains and losses arising from changes in the actuarial assumptions are accounted for as equity valuation adjustments, net of the effects of income tax and social contribution effects. See Note 21 (b), the breakdown of amounts recorded in 2020 and 2019. G1 plan G0 plan Total Balance as of December 31, 2019 105,254 (1,017,408) (912,154) Actuarial gains/(losses) for the year (Note 21 (b)) (10,179) 521,331 511,152 Balance as of December 31, 2020 95,075 (496,077) (401,002) |
25 Earnings per share
25 Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Earnings per share | 25 Earnings per share Basic and diluted Basic earnings per share is calculated by dividing the equity attributable to the Company’s owners by the weighted average number of outstanding common shares during the year. The Company does not have potentially dilutive common shares outstanding or debts convertible into common shares. Accordingly, basic and diluted earnings per share are equal. 2020 2019 2018 Earnings attributable to Company’s owners 973,318 3,367,517 2,835,068 Weighted average number of common shares issued 683,509,869 683,509,869 683,509,869 Basic and diluted earnings per share (reais per share) 1.42 4.93 4.15 |
26 Operating segment informatio
26 Operating segment information | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Operating segment information | 26 Operating segment information Management, comprised of the Board of Directors and Board of Executive Officers, has determined the operating segment used to make strategic decisions, as sanitation services. Result 2020 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 15,157,780 3,716,616 18,874,396 Gross sales deductions (1,076,855) - (1,076,855) Net operating revenue 14.080,925 3,716,616 17,797,541 Costs, selling, general and administrative expenses (9,796,821) (3,630,139) (13,426,960) Income from operations before other operating expenses, net and equity accounting 4,284,104 86,477 4,370,581 Other operating income / (expenses), net 107,656 Equity accounting 14,136 Financial result, net (3,166,371) Income from operations before taxes 1,326,002 Depreciation and amortization (2,037,112) (2,037,112) (i) See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information; (ii) Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 15 (e). Result 2019 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 16,134,032 2,946,566 19,080,598 Gross sales deductions (1,096,944) - (1,096,944) Net operating revenue 15,037,088 2,946,566 17,983,654 Costs, selling, general and administrative expenses (9,375,590) (2,881,394) (12,256,984) Income from operations before other operating expenses, net and equity accounting 5,661,498 65,172 5,726,670 Other operating income / (expenses), net (18,748) Equity accounting 3,701 Financial result, net (1,033,681) Income from operations before taxes 4,677,942 Depreciation and amortization (1,780,094) (1,780,094) (i) See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information; (ii) Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 15 (e). 2018 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 14,253,609 2,802,670 17,056,279 Gross sales deductions (971,185) - (971,185) Net operating revenue 13,282,424 2,802,670 16,085,094 Costs, selling, general and administrative expenses (8,203,883) (2,739,657) (10,943,540) Income from operations before other operating expenses, net and equity accounting 5,078,541 63,013 5,141,554 Other operating income / (expenses), net 28,591 Equity accounting 6,510 Financial result, net (1,264,336) Income from operations before taxes 3,912,319 Depreciation and amortization (1,392,541) (1,392,541) (i) See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information; (ii) Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 15 (e). |
27 Insurance
27 Insurance | 12 Months Ended |
Dec. 31, 2020 | |
Insurances [abstract] | |
Insurance | 27 Insurance The Company has insurance that covers, among others, fire and other damage to its assets and office buildings, and liability insurance against third parties. It also has civil liability insurance for the members of the Board of Directors and Board of Executive Officers (“D&O insurance”) and guarantee insurance for escrow deposit (as described in Note 20 (f)) and traditional guarantee insurance. . The risk assumptions adopted, given their nature, are not within the scope of a financial statement audit, and consequently have not been examined by our independent auditors . As of December 31, 2020, the Company’s insurance was as follows: Coverage Specified risks – fire 2,185,827 Engineering risk 2.764,278 Guarantee insurance for escrow deposit 500,000 Traditional guarantee insurance 100,000 Civil liability– D&O (Directors and Officers) 100,000 Civil liability – works 136,010 Domestic and international transportation 1 Civil liability – operations 10,000 Other 15 Total 5,796,130 |
28 Operating revenue
28 Operating revenue | 12 Months Ended |
Dec. 31, 2020 | |
Operating Revenue | |
Operating revenue | 28 Operating revenue (a) Revenue from sanitation services: 2020 2019 2018 Metropolitan Region of São Paulo 10,722,384 11,849,776 10,295,509 Regional Systems 4,435,396 4,284,256 3,958,100 Total 15,157,780 16,134,032 14,253,609 (b) Reconciliation between gross operating income and net operating income: 2020 2019 2018 Revenue from sanitation services (i) 15,157,780 16,134,032 14,253,609 Construction revenue 3,716,616 2,946,566 2,802,670 Sales tax (1,009,358) (1,035,051) (916,808) Regulatory, Control and Oversight Fee (TRCF) (67,497) (61,893) (54,377) Net revenue 17,797,541 17,983,654 16,085,094 (i) Includes the amount of R$ 72,962 corresponding to the TRCF charged from customers from the municipalities regulated by ARSESP (R$ 70,122 in 2019). |
29 Operating costs and expenses
29 Operating costs and expenses | 12 Months Ended |
Dec. 31, 2020 | |
Operating costs and expense [abstract] | |
Operating costs and expenses | 29 Operating costs and expenses 2020 2019 2018 Operating costs Salaries, payroll charges and benefits (1,958,395) (1,938,265) (1,959,539) Pension plan obligations (37,281) (49,564) (25,066) Construction costs (Note 26) (3,630,139) (2,881,394) (2,739,657) General supplies (244,054) (259,401) (238,034) Treatment supplies (338,756) (310,380) (265,146) Outsourced services (1,251,839) (1,250,890) (996,477) Electricity (1,214,831) (1,140,160) (956,840) General expenses (622,113) (647,804) (629,253) Depreciation and amortization (1,882,259) (1,659,779) (1,276,444) (11,179,667) (10,137,637) (9,086,456) Selling expenses Salaries, payroll charges and benefits (271,565) (270,549) (289,378) Pension plan obligations (5,059) (6,848) (3,602) General supplies (5,471) (10,332) (6,391) Outsourced services (290,512) (360,190) (273,470) Electricity (1,200) (1,333) (1,154) General expenses (118,278) (122,503) (102,213) Depreciation and amortization (59,201) (31,649) (17,272) (751,286) (803,404) (693,480) Bad debt expense, net of recoveries (Note 10 (c)) (444,826) (128,099) (166,727) Administrative expenses Salaries, payroll charges and benefits (257,829) (278,507) (254,284) Pension plan obligations (116,941) (138,207) (141,758) General supplies (14,237) (3,216) (4,881) Outsourced services (230,054) (197,357) (204,728) Electricity (1,359) (1,436) (1,363) General expenses (257,693) (407,250) (232,288) Depreciation and amortization (95,652) (88,666) (98,825) Tax expenses (77,416) (73,205) (58,750) (1,051,181) (1,187,844) (996,877) Operating costs and expenses Salaries, payroll charges and benefits (2,487,789) (2,487,321) (2,503,201) Pension obligations (159,281) (194,619) (170,426) Construction costs (Note 26) (3,630,139) (2,881,394) (2,739,657) General supplies (263,762) (272,949) (249,306) Treatment supplies (338,756) (310,380) (265,146) Outsourced services (1,772,405) (1,808,437) (1,474,675) Electricity (1,217,390) (1,142,929) (959,357) General expenses (998,084) (1,177,557) (963,754) Depreciation and amortization (2,037,112) (1,780,094) (1,392,541) Tax expenses (77,416) (73,205) (58,750) Bad debt expense, net of recoveries (Note 10 (c)) (444,826) (128,099) (166,727) (13,426,960) (12,256,984) (10,943,540) |
30 Financial Income (Expenses)
30 Financial Income (Expenses) | 12 Months Ended |
Dec. 31, 2020 | |
Financial income (expenses) [abstract] | |
Financial Income (Expenses) | 30 Financial Income (Expenses) 2020 2019 2018 Financial expenses Interest and charges on borrowings and financing – local currency (348,050) (331,367) (332,149) Interest and charges on borrowings and financing – foreign currency (136,257) (165,421) (171,686) Other financial expenses (328,413) (344,508) (187,563) Income tax over international remittance (15,134) (17,650) (19,779) Inflation adjustment on borrowings and financing (86,938) (44,802) (66,183) Other inflation adjustments (142,313) (107,584) (45,193) Interest and inflation adjustments on provisions (i) (267,654) (162,093) 14,586 Total financial expenses (1,324,759) (1,173,425) (807,967) Financial income Inflation adjustment gains 120,957 91,180 105,952 Income on financial investments 75,522 151,622 187,094 Interest income 162,576 150,054 175,939 Cofins and Pasep (22,328) (20,028) (22,693) Other 4 14 10 Total financial income 336,731 372,842 446,302 Financial income (expenses), net before exchange rate changes (988,028) (800,583) (361,665) Exchange gains (losses) Exchange rate changes on borrowings and financing (ii) (2,180,241) (233,960) (915,897) Exchange rate changes on assets 1,894 863 13,235 Other exchange rate changes 4 (1) (9) Exchange rate changes, net (2,178,343) (233,098) (902,671) Financial income (expenses), net (3,166,371) (1,033,681) (1,264,336) (i) Increase of R$ 105.6 million, due to the increase in interest and monetary variations on lawsuits. (ii) Increase of R$ 1,946.3 million, due to the higher appreciation of the U.S. dollar and the Yen against the Real in 2020 (28.9% and 35.8%, respectively), compared to appreciation presented in 2019 (4.0% and 5.3%, respectively). |
31 Other operating income (expe
31 Other operating income (expenses), net | 12 Months Ended |
Dec. 31, 2020 | |
Other Operating Income Expenses Net | |
Other operating income (expenses), net | 31 Other operating income (expenses), net 2020 2019 2018 Other operating income, net 70,288 75,667 93,089 Other operating expenses 37,368 (94,415) (64,498) Other operating income (expenses), net 107,656 (18,748) 28,591 Other operating income is comprised by sale of property, plant and equipment, sale of contracts awarded in public bids, right to sell electricity, indemnities and reimbursement of expenses, fines and collaterals, property leases, reuse water, PURA projects and services, net of Cofins and Pasep. Other operating expenses consist mainly of derecognition of concessions assets due to obsolescence, discontinued construction works, unproductive wells, projects considered economically unfeasible, losses on property, plant and equipment , and recognition and reversal of estimated losses with asset indemnification, the main impact in the year being the agreement signed with the municipality of Mauá. |
32 Commitments
32 Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments | |
Commitments | 32 Commitments The Company has agreements to manage and maintain its activities, as well as agreements to build new projects aiming at achieving the objectives proposed in its target plan. Below, the main unrecorded committed amounts as of December 31, 2020: 1 year 1-3 years 3-5 years More than 5 years Total Contractual obligations – Expenses 1,301,725 633,296 142,484 684,761 2,762,266 Contractual obligations – Investments 2,211,198 1,642,792 2,103,935 174,115 6,132,040 Total 3,512,923 2,276,088 2,246,419 858,876 8,894,306 |
33 Supplemental cash flow infor
33 Supplemental cash flow information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Informations Abstract | |
Supplemental cash flow information | 33 Supplemental cash flow information 2020 2019 2018 Total additions to contract assets (Note 14) 3,948,158 3,532,283 3,188,943 Total additions to intangible assets (Note 15 (b)) 411,285 1,788,907 1,144,728 Items not affecting cash (see breakdown below) (1,095,285) (2,125,943) (2,201,112) Total additions to intangible assets as per statement of cash flows 3,300,158 3,195,247 2,132,559 Investments and financing operations affecting intangible assets but not cash: Interest capitalized in the year (Note 15 (d)) 238,330 233,251 488,502 Contractors payable 142,514 252,675 297,872 Program contract commitments 4,422 35,817 149,974 Public Private Partnership - São Lourenço PPP (Note 15 (g)) - 10,591 273,737 Performance agreements 314,720 78,296 - Right of use 28,549 113,233 - Construction margin (Note 26) 85,976 65,172 63,013 Agreement with the Municipality of Mauá (Note 10 (a)) 280,774 - - Agreement with the Municipality of Santo André - 1,336,908 - Agreement with the municipality of Guarulhos - - 928,014 Total 1,095,285 2,125,943 2,201,112 |
34 Events after the reporting p
34 Events after the reporting period | 12 Months Ended |
Dec. 31, 2020 | |
Events After Reporting Period | |
Events after the reporting period | 34 Events after the reporting period COVID-19 - suspension of cuts and debt renegotiation On February 3, 2021, the Company approved: (i) suspend cuts and renegotiate debts for commercial and service customers residing in the operated municipalities that are in the orange and red phases of the São Paulo / Covid-19 Plan; (ii) the validity period will run from February 3, 2021 until March 31, 2021; (iii) the existing debts, including the agreements signed during the pandemic period, will be renegotiated without the application of a fine and interest, only monetary adjustment, according to the Company's policy and procedure; (iv) the term for installments will be 12 months, from the date of the renegotiation of outstanding balances; (v) the debtor will not be included in the credit protection register for debts until March 31, 2021; (vi) debtors which may have been included in the credit protection register during the pandemic will be withdrawn immediately after the debt is renegotiated with Sabesp. On March 16, 2021, the Company extended from March 31 to April 30, 2021, the measures to minimize the economic impacts of the pandemic in commercial and service establishments, mentioned above. New Legal Sanitation Framework – recognition of financial asset The Company has been maintaining investments made and not recovered through the rendering of services, within the original term of the contract, as intangible assets, amortized by the useful life of the asset, taking into consideration the solid track record of concession renewal and, therefore, the continuity of service rendering, since, although Law 14,026/2020, New Legal Sanitation Framework, had been approved by the Brazilian President with vetoes, including on the extension of program contracts, such vetoes would still be voted in the Brazilian Congress, for this reason the Company maintained, for the reference date of December 31, 2020, the recognition of the investments made in the concessions as intangible assets. However, on March 17, 2021, the House of Representative casted a vote to maintain the restriction regarding the extension of program contracts, i.e. the granting authorities will no longer be able to sign contracts directly and will have to hold bidding processes for the provision of services. Accordingly, SABESP is analyzing the possible impacts of recognizing a financial asset under intangible assets that may be reclassified, referring to the contractual rights to receive cash (indemnities) at the end of the contracts, corresponding to the investments made and not recovered over the provision of services. · Results of the ARSESP’s Publics Consultations On April 8, 2021, ARSESP published the results of the Calculation of the Maximum Average Tariff (P0) and X Factor of the Third Ordinary Tariff Revision and the results of the Proposed Revision of Sabesp’s Tariff Structure. Although a new tariff structure was approved, the tariff for 2021 will still be based on the current tariff structure, while the new structure will be applied from 2022 onwards. The impact of the tariff adjustment for residential and non-residential, residential social and wholesale (water and sewage treatment) customers in 2021 is 7.6%, negative 1.0% and 5.45%, respectively. Further, the real tariff readjustments for the residential category for 2022, 2023 and 2024 were set at 1.5%, 3% and 4.6%, respectively, together with the expansion of beneficiaries in the vulnerable residential category and the resources intended for the commercial programs of the 2019-2020. The new tariff structure was defined by ARSESP considering four groups: (i) minimum consumption versus fixed tariff with a portion being determined by reference to volume of water used; (ii) tariffs segregated by type of service (such as water, sewage collection and sewage treatment); (iii) social tariff; and (iv) non-residential tariffs. |
3 Summary of Significant Acco_2
3 Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Significant Accounting Policies | |
Cash and cash equivalents | 3.1 Cash and cash equivalents Cash and cash equivalents include cash in hand, bank deposits, overdraft accounts and other short-term highly liquid investments with maturities and intention of use by the Company’s Management in a period lower than three months. |
Financial assets and liabilities | 3.2 Financial assets and liabilities Financial Asset - Classification The Company classified its financial assets according to the following categories: measured at amortized cost, measured at fair value through other comprehensive income and measured at fair value through profit or loss. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of the financial assets at inception. As of December 31, 2020 and 2019, the Company did not have financial assets classified as fair value through other comprehensive income and fair value through profit or loss. Amortized cost This comprises financial assets that meet the following conditions: (i) it is held within the business model whose objective is to hold financial assets to collect contractual cash flows; and (ii) the contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the principal amount outstanding. Presented as current assets, except for those with maturity of more than 12 months after the reporting date (these are classified as noncurrent assets). The Company's financial assets measured at amortized cost include cash and cash equivalents, financial investments, restricted cash, balances of trade receivables, accounts receivable from related parties, other receivables, receivables from the Water and Basic Sanitation National Agency – ANA. Financial assets measured at amortized cost are recorded at fair value and subsequently at amortized cost, under the effective interest rate method, except for trade receivables, which is initially measured at transaction price, as it contains no financing items, and is subsequently measured at amortized cost. Financial Liabilities - Classification The Company classifies its financial liabilities measured at amortized cost. Classification depends on the purpose to which the financial liabilities were assumed. This category comprises balances payable to contractors and suppliers, borrowings and financing, services payable, balances payable from public-private partnership (PPP), and program contract commitments. The effective interest rate method is adopted to calculate the amortized cost of a financial liability and allocate its interest expense under the respective period. The effective interest rate exactly deducts the estimated future cash flows (including fees, transaction costs and other issue costs) throughout the financial liability’s estimated life or, when appropriate, during a shorter period, for initial recognition of the net carrying amount. Impairment of financial assets Trade receivables Due to the charactheristics of the Company’s accounts receivable such as (i) insignificant financial component, (ii) non-complex receivables portfolio, and (iii) low credit risk, the Company adopted the simplified approach of expected credit loss, which consists in recognizing the expected credit loss based on the total asset’s useful life. The methodology to calculate allowance for doubtful accounts consisted of using an estimate calculated based on the average default observed in the last 36 months, per maturity range, in addition to estimating the recovery of credits overdue for more than 360 days, based on the track record of the last three years. For estimate purposes, it also considered the category of private and public customers, and segregated accounts receivable among the regular consumption accounts and agreements. The Company also concluded that the estimates of the macroeconomic indicators Gross Domestic Product (GDP), Unemployment Rate and the Extended Consumer Price Index (IPCA) were not impacted, given that it carried out correlation analyses of these indicators and its default history, which did not result in a correlation between them. Deposit transactions and financial investments measured at amortized cost The Company analyzes changes in the rates of investments in bank deposits certificates and information obtained from regulatory agencies about the financial institutions. The likelihood of delinquency over 12 months and during the terms of these investments was based on historical data provided by credit rating agencies for each credit level and analyzed in terms of sensitivity based on current returns. These deposits and financial investments are subject to an insignificant risk of change in value. |
Operating income | 3.3 Operating income (a) Revenue from sanitation services Revenue from water supply and sanitation services are recognized as the water is consumed and services are provided. Revenues, including unbilled revenues, are recognized at the fair value of the consideration received or receivable for the rendering of those services. Revenue is shown net of value-added tax, rebates and discounts. Unbilled revenues represent incurred revenues in which the services were provided, but not yet billed until the end of the each period and are recorded as trade receivables based on monthly estimates of the completed services. Revenues are recognized based on IFRS 15 (Revenue from Contracts with Customers), which establishes a five-step model applicable over revenue from a contract with a customer. Revenues are recognized when the Company: i) it identifies the contracts with customers; ii) it identifies the different obligations in the contract; iii) it determines the transaction price; iv) it allocates the transaction price to the performance obligations in the contracts; and (v) it satisfies all performance obligations. Disputed amounts are recognized as revenue when collected. (b) Construction revenue Revenue from concession construction contracts is recognized in accordance with IFRS 15 (Revenue from Contracts with Customers) and IFRIC 12 (Service Concession Arrengements), as all performance obligations are satisfied over time. During the construction of the contract, an asset is classified as contract assets, as the Company estimates that the fair value of its consideration is equivalent to expected construction costs plus margin. The fee represents the additional margin related to the work performed by the Company in relation to such construction contracts and it is added to construction costs, resulting in the construction revenue. |
Trade receivables and allowance for doubtful accounts | 3.4 Trade receivables and allowance for doubtful accounts Trade receivables are amounts due from customers for services performed in the ordinary course of business. These are classified as current assets, except when maturity exceeds 12 months after the end of the reporting period. In these cases, they are presented as noncurrent assets. The Company establishes an allowance for doubtful accounts for receivable balances at an amount that Management considers to be sufficient to cover eventual losses, as described in note 3.2. |
Inventories | 3.5 Inventories Inventories comprise supplies for consumption and maintenance of the water and sewage systems are stated at the lower of average cost of acquisition or net realizable value, and are classified in current assets. |
Investment properties | 3.6 Investment properties Investment properties are recorded at the acquisition or construction cost, less accumulated depreciation, except for the land group, calculated by the straight-line method at rates that consider the estimated useful life of the assets. Expenditures related to repairs and maintenance are recorded in the income statement when incurred. The Company also maintains some assets for undetermined use in the future, i.e. it is not defined if the Company will use these assets in the operation or sell them in the short term during the ordinary course of business. |
Property, plant and equipment | 3.7 Property, plant and equipment Property, plant and equipment comprise mainly administrative facilities not composing the assets, subject-matter of the concession agreements. Those assets are stated at historical acquisition or construction cost less depreciation, net of impairment losses, when necessary. Interest, other finance charges and inflationary effects resulting from financing effectively applied to construction in progress are recorded as cost of respective property, plant and equipment, in this case, for the qualifying assets, as applicable. Qualifying assets are assets that, necessarily, required a substantial period to get ready for its intended use or sale. The Company defined that this period is higher than 12 months, based on the completion period of the works, given that most of them take in average more than 12 months to be completed, which corresponds to one fiscal year of the Company. Subsequent costs included in the existing asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that the future economic benefit associated with the item will flow to the Company and the cost of the item can be reliably measured. Repairs and maintenance are charged to the income statement of the year, as incurred. Depreciation is calculated using the straight-line method to allocate their cost and is described in Note 16 (a). Land is not depreciated. Residual values and the useful life of assets are revised and adjusted, where applicable, at the end of each year. Gain and losses on disposals are determined by the difference between the proceeds with the carrying amount and are recognized in other operating income (expenses) in the income statement. |
Intangible assets | 3.8 Intangible assets Intangibles are stated at acquisition cost and/or construction of the underlying assets, including construction margin, interest and other finance charges capitalized during the construction period, in this case, for the qualifying assets. Qualifying assets are assets that, necessarily, take a substantial period to get ready for its intended use or sale. The Company considers that substantial period means a period greater than 12 months. This period was established by considering the completion period of the majority of its constructions, which is greater than 12 months, which corresponds to one fiscal year of the Company. The intangible has its amortization initiated when the intangible assets are available for use in location and the necessary condition when this asset becomes operational. The amortization of the intangible assets is discontinued when the asset is totally consumed or it is disposed of, whatever occurs first. Donations in assets, received from third parties and governmental entities, to allow the Company to render water and sewage services are not recorded in the Company’s financial statements, since these assets are controlled by the concession grantor. Financial resources received as donations for the construction of infrastructure are recorded under “Other operating income”. (a) Concession agreements/program contracts/service contracts The Company operates concession agreements including the rendering of basic sanitation, environmental, water supply and sewage services signed with the concession grantor. The infrastructure used by SABESP subject to service concession arrangements is considered to be controlled by the concession grantor when: (i) The grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must provide them, and at what price; and (ii) The grantor controls the infrastructure, i.e., retains the right to take back the infrastructure at the end of the concession. The rights over the infrastructure operated under the concession agreements are accounted for as an intangible asset as the Company has the right to charge for the use of the infrastructure assets, and the users (consumers) have the primary responsibility to pay SABESP for the services. The fair value of construction and other works on the infrastructure is recognized as revenue, as its fair value, when the infrastructure is built, provided that this work is expected to generate future economic benefits. The accounting policy to recognize construction revenue is described in Note 3.3 (b). Investments made and not recovered through rendering of services, in cases where there is the right to receive the residual value of the assets at the end of the contract , must be indemnified by the concession grantor, with cash or cash equivalents or also, in general with the contract extension. These investments are amortized by the useful life of asset. The details referring to amortization of intangible assets are described in Note 15 (c). Law 11,445/2007 indicates, whenever possible, that basic sanitation public utilities will have the economic and financial sustainability ensured through the remuneration due to service collection, preferably as tariffs and other public prices, which may be established for each service or both jointly. Therefore, investments made and not recovered through services rendered, within original term of the contract, are recorded as intangible assets and amortized by the useful life of the asset, taking into consideration a solid track record of concession renewal and, therefore, the continuity of services. Although Law 14,026/2020 the New Legal Sanitation Framework, has been approved by the Brazilian President with a veto on the renewal of program contracts, such vetoes had not been voted until December 31, 2020, for to this reason the Company maintained the investments made in the concessions recorded under intangible assets. (b) Software license of use Software licensing is capitalized based on the acquisition costs and other implementation costs. Amortizations are recorded according to the useful life and the expenses associated with maintaining them are recognized as expenses when incurred. |
Impairment of non-financial assets | 3.9 Impairment of non-financial assets Property, plant and equipment, intangible assets and other noncurrent assets with defined useful lives, are yearly reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company does not have assets with indefinite useful life and assessed that there are no indications of impairment losses, mainly supported by Law 14,026/2020, which ensures that basic sanitation public utilities will have assured its economic and financial sustainability to public sanitation services through tariffs or indemnity. |
Trade accounts payable and contractors | 3.10 Trade accounts payable and contractors Trade payables and contractors are obligations to pay for goods or services acquired from suppliers in the ordinary course of business and are initially measured at fair value, which generally correspond to the bill and subsequently at amortized cost, being classified as current liabilities, except when the maturity exceeds 12 months after the reporting date and are, otherwise, being presented as noncurrent liabilities. |
Borrowings and financing | 3.11 Borrowings and financing Borrowings and financing are initially recognized at fair value, upon receipt of funds, net of transaction costs. Subsequently, borrowings and financing are stated at amortized cost, as presented in Note 17. Borrowings and financing are classified as current liabilities unless the Company has an unconditional right to defer the settlement of the liability for at least 12 months after the end of the reporting date. Nonconvertible bonds issued by the Company are recognized in a similar manner to borrowings. |
Borrowing costs | 3.12 Borrowing costs Borrowing costs attributable to acquisition, construction or production of an asset, which, necessarily, requires a substantial time period to be ready for use or sale are capitalized as part of the cost of these assets. Other borrowing costs are recognized as expenses in the period they are incurred. Borrowing costs are interest rates and other charges incurred by the Company related to borrowings, including exchange variation, as described below. The capitalization occurs during the period in which the asset has been built, considering the weighted average rate of borrowings effective on the capitalization date. For foreign currency-denominated borrowings or financing, the Company analyzes them as if they were contracted in local currency, restricting the capitalization of interest and/or exchange variation by the amount that would be capitalized if these were contracted in the domestic market in similar lines of credit and loans. |
Salaries, payroll charges and contributions | 3.13 Salaries, payroll charges and contributions Salaries, vacations, Christmas bonus, profit sharing and additional payments negotiated in collective labor agreements plus related charges and contributions are recorded on the accrual basis. The profit sharing plan for its employees is based on operational and financial targets, and a provision is created when it is contractually required or when there is a past practice that created a constructive obligation, and is recorded on the accrual basis period as operating cost, selling and administrative expenses or capitalized in assets. |
Provisions, legal obligations, escrow deposits and contingent assets | 3.14 Provisions, legal obligations, escrow deposits and contingent assets Provisions related to claims are recognized when: i) the Company has a present (legal or constructive) obligation resulting from a past event; ii) it is probable that an outflow of resources that comprise economic benefits will be required to settle the obligation; and iii) the amount can be reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow of resources will be required to settle an obligation is determined by considering the nature of the obligations as a whole. Provisions are measured at the present value of the disbursements expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as financial expense. For financial statement presentation purposes, the provision is stated net of escrow deposits, based on the legal offset right. Escrow deposits not linked to the related obligations are recorded in noncurrent assets. Escrow deposits are adjusted by the indexes defined by the competent authorities. The Company does not recognize contingent liabilities in the financial statements since it either does not expect outflows to be required or the amount of the obligation cannot be reliably measured. Contingent assets are not recognized in the statements of financial position. |
Environmental costs | 3.15 Environmental costs Costs related to ongoing environmental programs are expensed in the income statement, when there is any indication of an event. Ongoing programs are designed to minimize the environmental impact of the operations and to manage the environmental risks inherent to the Company's activities. |
Income taxes - current and deferred | 3.16 Income taxes – current and deferred Income taxes expenses comprise current and deferred income tax and social contributions. Current taxes The provision for income tax and social contribution is based on the taxable income for the year. The income tax was accrued at rate of 15%, plus 10% surtax on taxable income exceeding R$ 240. The social contribution was accrued at rate 9% over the adjusted net income. Taxable income differs from net income (profit presented in the income statement), because it excludes income and expenses taxable or deductible in other years, and excludes items not permanently taxable or not deductible. Income tax and social contribution are accrued based on legislation in place in the end of the year. The Company periodically evaluates and measures the positions taken in the income tax return with respect to situations in which the applicable tax regulations are subject to interpretation. It establishes provisions, where appropriate, based on amounts expected to be paid to the tax authorities. Deferred taxes Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction that at the time of the transaction affects neither accounting nor taxable profit nor loss, except for business combinations. Deferred income tax is determined using tax rates (and laws) effective at the end of the reporting period and expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax and social contribution assets are recognized only to the extent that it is probable that future taxable profit will be available for which temporary differences can be utilized and tax losses can be carryforward. Deferred taxes assets and liabilities are offset when there is a legally enforceable right of offsetting current tax assets against current tax liabilities and when deferred income tax assets and liabilities are related to income taxes levied by same tax authority over the tax entity. |
Taxes on revenues | 3.17 Taxes on revenues Revenues from sanitation services are recognized on accrual basis for PASEP (Programa de Formação do Patrimônio do Servidor Público) and Cofins (Contribuição para o Financiamento da Seguridade Social), calculated at the rates of 1.65% and 7.60%, respectively. In addition, revenues from sanitation services are also subject to the Regulatory, Control and Oversight Fee (TRCF - Taxa de Regulação, Controle e Fiscalização), whose taxable event is the performance of regulatory, control and monitoring activities by ARSESP, calculated at 0.50% of the annual revenue directly generated by the service provided less taxes levied on the service. The taxes related to PASEP and Cofins incident on amounts invoiced to public entities are due when invoices are received. These taxes are calculated by the non-cumulativeness regime and presented net, as deductions from gross revenues. Tax debts calculated over “other operating income” are presented as deductions from the respective operating income. |
Pension obligations | 3.18 Pension obligations (a) Defined benefit The Company makes contributions to defined benefit plans on a contractual basis and sponsored thereby. The regular contributions comprise the net administrative expenses and are recognized in the income statement for the period. Liabilities from defined benefit pension plan obligations correspond to the present value of the defined benefit obligation at the end of the reporting period, less the fair value of the plan’s assets. The defined benefit obligation (G1) and (G0) are calculated on an annual basis by independent actuaries, using the projected unit credit method. The estimated future cash outflow is discounted to its present value, using the interest rates of Government bonds with maturities that approximate the maturity of the related liability. Referring to actuarial gains and losses deriving from adjustments based on the experience and changes in actuarial assumptions are directly recorded under equity, as other comprehensive income (OCI), so that the plan's net assets or liabilities are recognized in the statement of financial position in order to reflect the full amount of plan’s deficit or surplus. In an event where a curtailment relates to only some of the employees covered by a plan, or where only part of an obligation is settled, the gain or loss includes a proportionate share of the past service cost and actuarial gains and losses. The proportionate share is determined on the basis of the present value of the obligations before and after the curtailment or settlement. (b) Defined contribution The Company makes contributions to defined contribution plans on a contractual basis and sponsored thereby, a supplementary private pension entity that provides post-employment benefits to its employees, in which the Company makes fixed and equal contributions to employees, within the limits set by regulation. In this model, the benefits paid are directly related to the amount contributed, with no deficits to be covered by the Company. |
Financial revenues and expenses | 3.19 Financial revenues and expenses Financial revenue is primarily comprised of interest and inflation adjustments resulting from financial investments, escrow deposits and negotiations with customer to pay by installments, calculated using the effective interest rate method. Financial expenses are primarily comprised of interest, inflation adjustments and exchange rate changes on borrowings and financing, provisions, public-private partnership and program contract commitments. These financial income and expenses are calculated using the effective interest rate method. Inflation adjustments and exchange gains and losses derive from the collection or payment to third parties, as contractually required by law or court decision, and recognized on an accrual basis pro rata temporis. Inflation adjustments included in the agreements are not considered embedded derivatives, since they are deemed as inflation adjustment rates for the Company’s economic scenario. |
Leases | 3.20 Leases Leases are recognized at the present value of the contractual obligations, presented in assets as Right of Use (Note 15 (j)) and in liabilities as Leases (Note 17 (b)), except for short-term contracts (12 months or less) and/or low value (below US$ 5), which are recorded in the income statement recognized as an expense when incurred. |
Other current and noncurrent assets and liabilities | 3.21 Other current and noncurrent assets and liabilities Other assets are stated at acquisition cost, net of any impairment loss, where applicable. The amounts recognized as other liabilities are stated at known or estimated amounts, including, where applicable, related charges and inflation adjustments. |
Dividends and interest on capital | 3.22 Dividends and interest on capital The Company uses the tax benefits of distributing dividends as interest on capital, as permitted by Brazilian Law and based on the Bylaws. This distribution of dividend is accounted for in accordance with Brazilian Law 9,249/95 for tax deductibility purposes, limited to the daily pro rata fluctuation of the Long-term Interest Rate (TJLP). The benefit attributed to the shareholders is recognized in the current liability against Equity, based on its by-laws. Dividends and interest on capital over the minimum established in the by-laws are recognized when approved by the shareholders in the shareholders’ meeting, except for taxes incurring in the distribution of interest on capital. The tax benefit of the interest on capital is accrued in the income statement of the year, under the same recognition basis of expenses with interest on capital. |
Present value adjustment | 3.23 Present value adjustment Current and noncurrent financial assets and liabilities arising from long- or short-term transactions are adjusted to present value based on market discount rates as of the transaction date, when the effects are significant. |
Segment information | 3.24 Segment information Operating segments are determined in a manner consistent with the internal reporting to the Company’s chief operating decision maker (“CODM”), which, in the case of SABESP, is comprised of the Board of Directors and Board of Executive Officers, to make strategic decisions, allocate resources and evaluate performance. Consequently, the Company determined that it has one operating segment (sanitation services). The accounting policies used to determine segment information are the same as those used to prepare the Company’s financial statements. The measure of the segment’s profit or loss is operating income before other operating expenses, net and equity accounting, which excludes construction revenue and related costs. The CODM analyzes asset and liabilitity information on a consolidated basis. Consequently, the Company does not disclose segment information on assets and liabilities. Substantially all of the Company’s noncurrent assets and revenue generated from customers are located in São Paulo State. Consequently, financial information is not disclosed by geographic area. |
Translation into foreign currency | 3.25 Translation into foreign currency (a) Functional and reporting currency Items included in the financial statements are measured using the currency of the primary economic environment in which the company operates ("the functional currency"). The financial statements are presented in Brazilian reais (R$), which is also the Company's functional currency. All financial information has been stated in reais and rounded to the next thousand, except where otherwise indicated. (b) Foreign currency translation Foreign currency-denominated transactions are translated into Brazilian reais using the exchange rates prevailing at the transaction dates. Statement of financial position accounts are translated by the exchange rate prevailing at reporting date. Exchange gains and losses resulting from the settlement of these transactions and the translation of foreign currency-denominated cash assets and liabilities are recognized in the income statement, except for borrowings and financing referring to property, plant and equipment or intangible assets in progress, where exchange losses are recognized as corresponding entry to the asset while construction is in progress, as described in Note 3.12. |
1. Operations (Tables)
1. Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operations [abstract] | |
Schedule of concession agreements | The table below shows a summary of the contractual situation of the municipalities served: December 31, 2020 December 31, 2019 Total municipalities that have already signed contracts (*) 342 325 Balance – intangible and contract assets 39,440,568 35,990,087 Percentage of intangible and contract assets 93.08% 90.10% Revenue from sanitation services (excluding construction revenue) 14,406,803 13,700,777 Percentage of revenue from sanitation services (excluding construction revenue) 95.05% 84.92% Municipalities with expired: 8 21 Balance – intangible and contract assets 264,931 1,637,878 Percentage of intangible and contract assets 0.63% 4.10% Revenue from sanitation services (excluding construction revenue) 39,088 451,603 Percentage of revenue from sanitation services (excluding construction revenue) 0.26% 2.80% Municipalities with concession agreements due by 2030: 25 27 Balance – intangible and contract assets 1,436,529 1,181,172 Percentage of intangible and contract assets 3.39% 2.96% Revenue from sanitation services (excluding construction revenue) 597,483 588,628 Percentage of revenue from sanitation services (excluding construction revenue) 3.94% 3.65% Municipality of São Paulo: Percentage of intangible and contract assets 37.94% 43.37% Percentage of revenue from sanitation services (excluding construction revenue) 44.58% 44.48% (*) Includes the municipality of Tapiratiba, which signed a contract in October 2019, to begin operating in April 2020. |
4 Changes in accounting pract_2
4 Changes in accounting practices and disclosures (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Changes In Accounting Practices And Disclosures | |
Schedule of new standards, amendments and interpretations, adopted | Standard Description Impact Amendments to IFRS 3 – Definition of a Business Clarifies that even though businesses usually have outputs (“products”), products are not required for an integrated set of activities and assets in order to qualify as business. In order to qualify as a business, an acquired set of activities and assets must include at least one input and a substantive process that together contribute significantly to the capacity of creating products. The application of this amendment did not impact the disclosures or amounts recognized in the annual financial statements. Amendments to IAS 1 and IAS 8 – Definition of Material The purpose of the amendments is to facilitate the understanding of the definition of material in IAS 1 and not to change the underlying concept of materiality in the IFRS Standards. The concept of “hidden” material information with immaterial information was included as part of the new definition. The application of these amendments did not impact the disclosures or amounts recognized in the annual financial statements. |
Schedule of new standards, amendments and interpretations, not yet effective | The Company did not early adopt these standards and is assessing the impacts of the new and revised IFRS below on the disclosures or amounts recognized in the financial statements: Standard Description Impact IFRS 17 – Insurance Contracts 2 Establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. IFRS 17 will supersede IFRS 4 Insurance Contracts. The Company does not expect effects from adopting this standard. Amendments to IFRS 10 - Consolidated Statements and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 3 Clarify situations that involve the sale or contribution of assets between an investor and its associates or joint venture. The Company is assessing the impacts and effects of the amendments; however, it does not expect any effects from the amendments. Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current 2 These amendments to IAS 1 only affect the presentation of liabilities as current or non-current in the statement of financial position and not the amount or the time of recognition of any asset, liability, income or expense, or the information disclosed on such items. In addition, clarify that the classification of liabilities as current or non-current is based on the rights existing at the balance sheet date, specify that the classification is not affected by the expectations on whether an entity will exercise its right to postpone the settlement of the liability and introduce the definition of 'settlement' to clarify that settlement refers to the transfer to a counterparty, of cash, equity instruments, other assets or services. The Company does not expect any impacts from this standard. Amendments to IFRS 3 – Reference to the Conceptual Framework 1 The amendments update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Structure. The amendments also include in IFRS 3 the requirement that, for obligations within the scope of IAS 37, the acquirer applies this standard to identify whether there is an obligation at the acquisition date arising from past events. For a tax within the scope of IFRIC 21 - Taxes, the acquirer applies IFRIC 21 to determine whether the event that resulted in the obligation to pay the tax occurred up to the date of acquisition date. Finally, the amendments add an explicit statement that the acquirer does not recognize contingent assets acquired in a business combination. The Company does not expect effects from this standard. Amendments to IAS 16 – Proceeds Before Intended Use 1 The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from the sale of items produced before the asset is available for use, i.e. proceeds to bring the asset to the location and in the condition necessary for it to be able to operate as intended by the Company. Consequently, the entity recognizes these proceeds from the sale and corresponding costs in the result and measures the costs of these items in accordance with IAS 2 - Inventories. The amendments further clarify the meaning of “testing whether an asset is functioning properly”. Currently, IAS 16 determines this as assessing whether the technical and physical performance of the asset is such that it can be used in the production or supply of goods or services, for rent to third parties, or for administrative purposes. If not presented separately in the statement of comprehensive income, the financial statements should disclose the amounts of resources and costs included in income corresponding to items produced that are not a product of the entity's ordinary activities, and which items in the statement of comprehensive income include these resources and costs. The Company does not expect effects from this standard. Amendments to IAS 37 – Onerous Contracts – Cost of Compliance with the Contract 1 The amendments specify that the contract's "compliance cost" comprises costs directly related to the contract, these being the incremental costs of compliance with that contract (e.g., employees or materials) and the allocation of other costs directly related to contract compliance (for example, allocation of depreciation expenses to an item of property, plant and equipment used to fulfill the contract). These amendments apply to contracts for which the entity has not yet fulfilled all of its obligations at the beginning of the annual period in which the entity applies the changes for the first time. The comparative amounts are not restated. Instead, the entity shall recognize the cumulative effect of the initial adoption of the changes as adjusting the opening balance of retained earnings (or another component of shareholders' equity, as applicable) on the date of initial adoption. The Company does not expect effects from this standard. Annual improvements to IFRSs: 2018-2020 Cycle Amendments to IFRS 1 – First-time Adoption of International Financial Reporting Standards 1 1 1 · IFRS 1 – Initial Adoption of International Accounting Standards - provides for an additional measure for a subsidiary that becomes an initial adopter after its parent company with respect to accounting for accumulated translation differences. · IFRS 9 – Financial Instruments - clarifies that when applying the “10%” test to assess whether the financial liability should be written off, the entity includes only the fees paid or received between the entity (debtor) and the creditor, including fees paid or received by the entity or creditor on behalf of the other party. · IFRS 16 – Leases - this amendment excludes the example of reimbursement of improvements to third-party properties. Since the amendment is only an illustrative example, no effective date is defined. · IAS 41 – Biological Assets and Agricultural Product - the amendment excludes the requirement for entities to exclude cash flows for taxation when measuring fair value. The Company does not expect effects from this standard. 1 Effective for annual periods beginning on or after January 1, 2022. 2 Effective for annual periods beginning on or after January 1, 2023. 3 The effective date of the amendments has not yet been defined by IASB. |
5 Risk management (Tables)
5 Risk management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risk Management | |
Schedule of exposure to exchange risk | Below, the Company’s exposure to exchange risk: December 31, 2020 December 31, 2019 Foreign currency R$ Foreign currency R$ Borrowings and financing – US$ 167,479 870,338 1,051,881 4,239,817 Borrowings and financing – Yen 52,969,560 2,671,255 56,452,885 2,097,225 Interest and charges from borrowings and financing – US$ 5,540 32,242 Interest and charges from borrowings and financing – Yen 16,037 12,725 Total exposure 3,563,170 6,382,009 Borrowing cost – US$ (12,342) (20,173) Borrowing cost – Yen (2,966) (3,038) Total foreign-currency denominated borrowings (Note 17) 3,547,862 6,358,798 |
Schedule of increase/decrease in exchange rate | The decrease was partially offset by the appreciation of the US dollar and Yen against the Real, as shown in the following table: December 31, 2020 December 31, 2019 Variation US$ R$ 5.1967 R$ 4.0307 28.9% Iene R$ 0.05043 R$ 0.03715 35.7% |
Schedule of currency exposure | The Company understands that scenarios 25% and 50% are reasonable, given the instability of the real against the U.S. dollar and the Yen. Depreciation came to 28.9% and 35.7%, respectively, in 2020. Scenario I (Probable) Scenario II (+25%) Scenario III (+50%) (*) Net currency exposure as of December 31, 2020 in US$ - Liabilities 167,479 167,479 167,479 US$ rate as of December 31, 2020 5.1967 5.1967 5.1967 Exchange rate estimated according to the scenario 5.0000 6.2500 7.5000 Differences between the rates 0.1967 (1.0533) (2.3033) Effect on net financial result R$ - gain/(loss) 32,943 (176,406) (385,754) Net currency exposure as of December 31, 2020 in Yen - Liabilities 52,969,560 52,969,560 52,969,560 Yen rate as of December 31, 2020 0.05043 0.05043 0.05043 Exchange rate estimated according to the scenario 0.05125 0.06406 0.07687 Differences between the rates (0.00082) (0.01363) (0.02644) Effect on net financial result R$ - gain/(loss) (43,435) (721,975) (1,400,515) Total effect on net financial result in R$ - gain/(loss) (10,492) (898,381) (1,786,269) (*) For the probable scenario in US dollar, the exchange rate estimated for December 31, 2021 was used, pursuant to the BACEN Focus Report of December 31, 2020. For the Yen, the exchange estimated for December 31, 2021 was used, according to B3’s Reference Rates report of December 31, 2020. |
Schedule of borrowing and financing variable interest rate | The table below provides the Company's borrowings and financing subject to variable interest rate: December 31, 2020 December 31, 2019 CDI (i) 7,836,988 1,866,755 TR (ii) 1,619,416 1,675,203 IPCA (iii) 2,176,547 1,366,134 TJLP (iv) 1,517,657 1,381,342 LIBOR (v) 870,337 2,829,073 Interest and charges 164,439 105,667 Total 14,185,384 9,224,174 (i) CDI – (Certificado de Depósito Interbancário), an interbank deposit certificate (ii) TR – Interest Benchmark Rate (iii) IPCA – (Índice Nacional de Preços ao Consumidor Amplo), a consumer price index (iv) TJLP – (Taxa de Juros a Longo Prazo), a long-term interest rate index (v) LIBOR – London Interbank Offered Rate |
Schedule of credit information of banks | For the credit quality of the banks, such as deposits and financial investments, the Company considers the lower rating published by three main international rating agencies (Fitch, Moody's and S&P), according to internal policy of market risk management: Banks Fitch Moody's Standard Poor's Banco do Brasil S/A AA(bra) Aa1.br - Banco Santander Brasil S/A - Aaa.br brAAA Brazilian Federal Savings Bank AA(bra) Aa1.br brAAA Banco Bradesco S/A AAA(bra) Aa1.br brAAA Itaú Unibanco Holding S/A AAA(bra) Aa1.br brAAA Banco BV - Aa3.br brAAA Banco BTG Pactual S/A AA(bra) Aa2.br brAA+ |
Schedule of credit rating | The table below shows the rating assessment released by the Fitch agency, for deposit transactions and financial investments in local currency (R$ - domestic rating): December 31, 2020 December 31, 2019 Cash and cash equivalents and financial investments AA(bra) 2,662,685 2,193,725 AAA(bra) 891,243 41,992 Other (*) 253,619 17,493 3,807,547 2,253,210 (*) This category includes current accounts and investment funds in banks whose balances were not significant in 2019. The amount of R$ 253,066 referring to Banco BV (no classification) was recorded in 2020. |
Schedule of liquidity risk | For agreements with floating interest rate, the interest rates used correspond to the base dates above. 2021 2022 2023 2024 2025 2026 onwards Total As of December 31, 2020 Liabilities Borrowings and financing 3,439,199 1,994,506 2,019,520 2,177,923 1,672,201 9,828,487 21,131,836 Accounts payables to suppliers and contractors 263,741 - - - - - 263,741 Services payable 453,750 - - - - - 453,750 Public-Private Partnership – PPP 404,800 405,132 405,444 350,342 333,148 4,256,084 6,154,950 Program Contract Commitments 163,798 33,287 33,287 1,045 1,045 13,133 245,595 |
Schedule of sensitivity analysis on interest rate risk | The purpose of the sensitivity analysis is to measure the impact of changes in the market over the financial instruments, considering constant all other variables. In the time of settlement the amounts can be different from those presented, due to the estimates used in the measurement. December 31, 2020 Indicators Exposure Scenario I (Probable) (i) Scenario II 25% Scenario III 50% Assets CDI 3,778,252 3.0000%(*) 3.7500% 4.5000% Financial income 113,348 141,684 170,021 Liabilities CDI (7,836,988) 3.0000%(*) 3.7500% 4.5000% Interest to be incurred (235,110) (293,887) (352,664) CDI net exposure (4,058,736) (121,762) (152,203) (182,643) Liabilities TR (1,619,416) 0.0001%(***) 0.0001% 0.0002% Expenses to be incurred (2) (2) (3) IPCA (2,176,547) 3.3200%(*) 4.1500% 4.9800% Expenses to be incurred (72,261) (90,327) (108,392) TJLP (1,517,657) 4.5500%(*) 5.6875% 6.8250% Interest to be incurred (69,053) (86,317) (103,580) LIBOR (870,337) 0.1900%(**) 0.2375% 0.2850% Interest to be incurred (1,654) (2,067) (2,480) Total expenses to be incurred, net (264,732) (330,916) (397,098) (*) Source: CDI and IPCA (BACEN Focus Report, December 31, 2020) and long-term interest rate as of December 31, 2020 (BACEN). (**) Source: Bloomberg. (***) Source: B3. |
Schedule of capital management | Total capital is calculated as total equity as shown in the statement of the financial position plus net debt. December 31, 2020 December 31, 2019 Total borrowings and financing (Note 17) 17,258,624 13,244,709 (-) Cash and cash equivalents (Note 7) (396,401) (2,253,210) (-) Financial investments (Note 8) (3,411,146) - Net debt 13,451,077 10,991,499 Total equity 22,793,704 21,635,783 Total capital (shareholders + providers of capital) 36,244,781 32,627,282 Leverage ratio 37% 34% |
Schedule of fair value of financial instruments | The estimated fair values of financial instruments are as follows: Financial assets December 31, 2020 December 31, 2019 Carrying amount Fair value Carrying amount Fair value Cash and cash equivalents 396,401 396,401 2,253,210 2,253,210 Financial investments 3,411,146 3,411,146 - - Restricted cash 35,742 35,742 26,018 26,018 Trade receivables 2,450,986 2,450,986 2,353,027 2,353,027 Water National Agency – ANA 26,463 26,463 32,466 32,466 Other receivables 246,110 246,110 194,178 194,178 |
Schedule of financial liabilities | Financial liabilities December 31, 2020 December 31, 2019 Carrying amount Fair value Carrying amount Fair value Borrowings and financing 17,258,624 17,702,649 13,244,709 13,937,611 Accounts payables to suppliers and contractors 263,741 263,741 369,631 369,631 Services payable 453,750 453,750 474,078 474,078 Program contract commitments 231,480 231,480 377,253 377,253 Public-Private Partnership - PPP 3,175,273 3,175,273 3,293,980 3,293,980 |
7 Cash and cash equivalents (Ta
7 Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | December 31, 2020 December 31, 2019 Cash and banks 74,033 176,497 Cash equivalents 322,368 2,076,713 Total 396,401 2,253,210 |
8 Financial investments (Tables
8 Financial investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial investments [abstract] | |
Schedule of financial investments | The Company has financial investments in CDB, with daily liquidity, which it does not intend to use in the next three months, as shown below: December 31, 2020 Banco BV 253,066 Banco Itaú S/A 354,296 Banco Bradesco S/A 506,136 Banco BTG Pactual S/A 354,299 Banco do Brasil S/A 1,943,349 3,411,146 |
9 Restricted cash (Tables)
9 Restricted cash (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred income tax and social contribution - G1 Plan | |
Schedule of restricted cash | December 31, 2020 December 31, 2019 Agreement with the São Paulo municipal government (i) 29,599 17,068 Brazilian Federal Savings Bank – escrow deposits (ii) 272 2,245 Other 5,871 6,705 35,742 26,018 (i) Refers to the amount deducted from the 7.5% of municipal revenue transferred to the Municipal Fund for Environmental Sanitation and Infrastructure, corresponding to eventual amounts unpaid by direct management bodies, foundations and government agencies, as established in the agreement entered into with the municipal government of São Paulo; and (ii) Refers to savings account for receiving escrow deposits regarding lawsuits with final and unappealable decisions in favor of the Company, which are blocked as per contractual clause. |
10 Trade receivables (Tables)
10 Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade Receivables | |
Schedule of financial position | December 31, 2020 December 31, 2019 Private sector: General (i) and special customers (ii) 1,663,738 1,505,150 Agreements (iii) 398,367 378,341 2,062,105 1,883,491 Government entities: Municipal 473,201 472,666 Federal 3,859 2,805 Agreements (iii) 333,740 277,047 810,800 752,518 Wholesale customers – Municipal governments: (iv) Mogi das Cruzes 3,582 3,278 São Caetano do Sul 18,808 9,871 Total wholesale customers – Municipal governments 22,390 13,149 Unbilled supply 713,310 745,884 Subtotal 3,608,605 3,395,042 Allowance for doubtful accounts (1,157,619) (1,042,015) Total 2,450,986 2,353,027 Current 2,204,029 2,137,752 Noncurrent 246,957 215,275 2,450,986 2,353,027 (i) General customers - residential and small and mid-sized companies; (ii) Special customers - large consumers, commercial, industries, condominiums and special billing customers (fixed demand agreements, industrial waste, wells, among others); (iii) Agreements - installment payments of past-due receivables, plus monetary adjustment and interest, according to the agreements; (iv) Wholesale basis customers - municipal governments - This balance refers to invoices issued as a result of services provided to municipalities, which are responsible for distributing to, billing and charging final customers. |
Schedule of aging of trade receivables | The aging of trade receivables is as follows December 31, 2020 December 31, 2019 Current 1,793,104 1,762,606 Past-due: Up to 30 days 340,760 330,488 From 31 to 60 days 177,103 164,913 From 61 to 90 days 120,488 86,765 From 91 to 120 days 88,323 58,971 From 121 to 180 days 113,060 81,003 From 181 to 360 days 82,365 33,206 Over 360 days 893,402 877,090 Total past-due 1,815,501 1,632,436 Total 3,608,605 3,395,042 |
Schedule of allowance for doubtful accounts | Allowance for doubtful accounts December 31, 2020 December 31, 2019 December 31, 2018 Balance at beginning of the year 1,042,015 1,099,442 1,067,973 Additions 176,776 54,064 61,315 Recoveries (61,172) (111,491) (29,846) Balance at the end of the year 1,157,619 1,042,015 1,099,442 |
Schedule of reconciliation of estimated/historic losses of income | Reconciliation of estimated/historical losses of income December 31, 2020 December 31, 2019 December 31, 2018 Write-offs (329,512) (179,929) (184,555) (Losses)/reversal with state entities - related parties 290 (5,597) 1,294 (Losses) with private sector / government entities (176,776) (54,064) (61,315) (Losses)/reversal with wholesale customers - - (29,458) Recoveries 61,172 111,491 107,307 Amount recorded expense (Note 29) (444,826) (128,099) (166,727) |
11 Related-Party Balances and_2
11 Related-Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions [abstract] | |
Schedule of accounts receivable, interest on capital payable, revenue and expenses with the Sao Paulo state government | December 31, 2020 December 31, 2019 Accounts receivable Current: Sanitation services (i) 109,078 131,851 Allowance for losses (i) (39,127) (39,417) Reimbursement for retirement and pension benefits paid (G0): - monthly flow (payments) (ii) and (vi) 22,726 31,584 - GESP Agreement – 2015 (iv) 75,377 68,888 Total current 168,054 192,906 Noncurrent: Agreement for the installment payment of sanitation services 4,303 10,883 Reimbursement of additional retirement and pension benefits paid (G0): - GESP Agreement – 2015 (iv) 634,288 647,107 Total noncurrent 638,591 657,990 Total receivables from shareholders 806,645 850,896 Assets: Sanitation services 74,254 103,317 Reimbursement of additional retirement and pension benefits (G0) 732,391 747,579 Total 806,645 850,896 Liabilities: Interest on capital payable to related parties 116,180 401,963 |
Schedule of loan agreement through credit facility | 2020 2019 2018 Revenue from sanitation services 501,756 556,574 501,146 Payments received from related parties (520,881) (546,365) (509,672) Receipt of reimbursement referring to Law 4,819/58 (173,874) (152,112) (173,516) |
12 Investments (Tables)
12 Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment [abstract] | |
Schedule of the investees' financial statements and equity interest | Below is a summary of the investees’ financial information and SABESP’s equity interest: Company Equity Dividends distributed Profit (loss) for the year 2020 2019 2018 2020 2020 (*) 2019 2018 Sesamm 51,514 45,923 43,547 (1,741) 7,332 - 4,418 5,621 Águas de Andradina 29,576 30,065 24,832 (1,267) 3,403 (2,625) 7,271 2,407 Águas de Castilho 8,533 7,242 6,084 (322) 1,600 13 1,767 1,001 Saneaqua Mairinque¹ 4,013 4,783 5,720 - (770) - (871) (790) Attend Ambiental 11,409 7,486 1,426 - 3,958 (35) (18,217) (3,743) Aquapolo Ambiental 41,903 37,772 30,170 (15,000) 19,131 - 16,283 11,413 Paulista Geradora de Energia 6,692 7,144 7,625 - (452) - (481) (822) Company Investments Dividends distributed Other Comprehensive Income Reclassification Equity in the earnings of subsidiaries Interest percentage 2020 2019 2020 2020 2020 2020 (*) 2019 2018 2020 2019 2018 Sesamm 18,546 16,533 (627) - - 2,640 - 1,591 2,023 36% 36% 36% Águas de Andradina 8,873 9,020 (380) - - 1,020 (787) 2,181 722 30% 30% 30% Águas de Castilho 2,560 2,172 (97) - - 481 4 529 300 30% 30% 30% Saneaqua Mairinque² - 1,434 - 17 (1,203) (248) - (262) (237) 4,6% 30% 30% Attend Ambiental 5,134 3,369 - - - 1,781 (16) (8,198) (1,684) 45% 45% 45% Aquapolo Ambiental 20,532 18,508 (7,350) - - 9,374 - 7,979 5,592 49% 49% 49% Paulista Geradora de Energia 1,673 1,786 - - - (113) - (119) (206) 25% 25% 25% Total 57,318 52,822 (8,454) 17 (1,203) 14,935 (799) 3,701 6,510 Other investments 6,099 365 Overall total 63,417 53,187 (*) Refer to changes in the equity of investees, as their financial statements for the year ended December 31, 2019 were issued, including some adjustments, after the Company’s financial statements. (¹) ( ) On August 20, 2020, the investee Saneaqua Mairinque held an Extraordinary Shareholders' Meeting that approved a capital increase in the amount of R$ 21,944, through the issue of 17,178,988 shares. SABESP waived its preemptive right in the participation of such capital increase, and the shares then issued because of the capital increase were entirely subscribed by the shareholder BRK Ambiental, resulting in the dilution of SABESP’s interest in the investee. Accordingly, SABESP discontinued the equity accounting method and recorded this financial asset under the fair value on the transaction date, in the amount of R$ 5,734 recorded as “Other investments”. The amounts corresponding to the equity result were recorded until July 2020. |
13 Investment properties (Table
13 Investment properties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment property [abstract] | |
Schedule of investment properties | December 31, 2019 Transfers Depreciation December 31, 2020 Investment properties 47,562 (1,240) (48) 46,274 December 31, 2018 Transfers Depreciation December 31, 2019 Investment properties 47,620 (9) (49) 47,562 December 31, 2017 Write-offs and disposals Transfers Depreciation December 31, 2018 Investment properties 57,652 (9,995) 13 (50) 47,620 |
14 Contract assets (Tables)
14 Contract assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Contract assets [abstract] | |
Schedule of contract assets | December 31, 2019 Additions (i) Transfers Transfers of works to intangible assets (ii) December 31, 2020 (iii) Total contract assets 7,617,714 3,984,158 55,706 (3,688,414) 7,969,164 (i) The largest additions of the period are located in the municipalities of São Paulo, Praia Grande and São Bernardo do Campo, in the amounts of R$ 1,676 million, R$ 284 million and R$ 228 million, respectively. (ii) The largest transfers of the period are located in the municipalities of São Paulo, Guarulhos, Cotia and Praia Grande, in the amounts of R$ 1,414 million, R$ 173 million, R$ 117 million and R$ 115 million, respectively. (iii) The largest works are located in the municipalities of São Paulo, Praia Grande and São Bernardo do Campo, in the amounts of R$ 3,727 million, R$ 527 million and R$ 496 million, respectively. December 31, 2018 Additions Write-offs Transfers Transfers of works to intangible assets December 31, 2019 Total contract assets 7,407,948 3,532,283 (4,910) 10,710 (3,328,317) 7,617,714 January 1, 2018 Additions Transfers of works to intangible assets December 31, 2018 Total contract assets 10,387,715 3,188,943 (6,168,710) 7,407,948 |
15 Intangible assets (Tables)
15 Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets other than goodwill [abstract] | |
Schedule of statement of financial position details | December 31, 2020 December 31, 2019 Cost Accumulated amortization Net Cost Accumulated amortization Net Intangible right arising from: Concession agreements – equity value 671,904 (188,129) 483,775 2,066,459 (571,606) 1,494,853 Concession agreements – economic value 1,446,261 (711,596) 734,665 1,334,531 (621,679) 712,852 Program contracts 23,160,119 (6,799,812) 16,360,307 19,413,768 (5,594,068) 13,819,700 Program contracts – commitments 1,709,757 (338,834) 1,370,923 1,651,434 (286,559) 1,364,875 Services contracts – São Paulo 20,579,676 (5,707,072) 14,872,604 19,217,091 (4,826,328) 14,390,763 Software license of use 978,085 (437,460) 540,625 829,739 (358,033) 471,706 Right of use – other assets 141,782 (99,106) 42,676 113,233 (42,535) 70,698 Total 48,687,584 (14,282,009) 34,405,575 44,626,255 (12,300,808) 32,325,447 |
Schedule of changes in intangible assets | December 31, 2019 Addition Contract renewal Transfer of contract assets Transfers Write-offs and disposals Amortization December 31, 2020 Intangible right arising from: Concession agreements – equity value (*) 1,494,853 1 (1,031,830) 47,154 1,440 (858) (26,985) 483,775 Concession agreements – economic value 712,852 - - 113,320 (1,403) (42) (90,062) 734,665 Program contracts (*) 13,819,700 303,472 1,031,830 2,075,268 (51,570) (5,423) (812,970) 16,360,307 Program contracts – commitments 1,364,875 58,323 - - - - (52,275) 1,370,923 Services contracts – São Paulo 14,390,763 20,940 - 1,382,656 (23,645) (9,990) (888,120) 14,872,604 Software license of use 471,706 - - 70,016 78,169 - (79,266) 540,625 Right of use – Other assets 70,698 28,549 - - - - (56,571) 42,676 Total 32,325,447 411,285 - 3,688,414 2,991 (16,313) (2,006,249) 34,405,575 (*) As of December 31, 2020, intangible assets includes leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 269,561 - R$ 76,454 recognized as concession agreements – equity value and R$ 193,107 recognized as program contracts (R$ 292,824 as of December 31, 2019 – R$ 87,266 recognized as concession agreements – equity value and R$ 205,558 recognized as program contracts). December 31, 2018 First-time adoption of IFRS 16 Addition Contract renewal Transfer to indemnities receivable Transfer of contract assets Transfers Write-offs and disposals Amortization December 31, 2019* Intangible right arising from: Concession agreements – equity value (*) 4,073,344 - 2 (2,690,660) (4,345) 131,809 76,804 (8,311) (83,790) 1,494,853 Concession agreements – economic value 1,232,009 - 2,034 (532,173) - 89,041 1,956 (569) (79,446) 712,852 Program contracts (*) 8,777,929 - 1,338,443 3,223,773 - 970,534 137,283 (10,312) (617,950) 13,819,700 Program contracts – commitments 1,079,551 - 331,328 - - - - - (46,004) 1,364,875 Services contracts – São Paulo 13,391,452 - 3,867 (940) - 2,054,940 (228,583) (20,739) (809,234) 14,390,763 Software license of use 458,175 - - - - 81,993 (991) - (67,471) 471,706 Right of use – Other assets - 64,955 48,278 - - - - - (42,535) 70,698 Total 29,012,460 64,955 1,723,952 - (4,345) 3,328,317 (13,531) (39,931) (1,746,430) 32,325,447 (*) As of December 31, 2019, intangible assets includes leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 292,824 - (R$ 315,717 as of December 31, 2018 – R$ R$ 98,077 recognized as concession agreements – equity value and R$ 217,640 recognized as program contracts). December 31, 2017 Transfers to contract assets (*) Additions Contract renewal Transfers of works (**) Transfers Write-offs and disposals Amortization December 31, 2018 Intangible right arising from: Concession agreements – equity value 7,141,614 (1,427,046) 93 (1,935,780) 499,002 (5,268) (1,406) (197,865) 4,073,344 Concession agreements – economic value 1,433,937 (233,361) 373 - 114,442 88 (1,031) (82,439) 1,232,009 Program contracts 7,595,066 (2,019,461) 928,818 1,935,780 681,742 3,011 (7,616) (339,411) 8,777,929 Program contracts – commitments 910,375 - 206,946 - - - - (37,770) 1,079,551 Services contracts – São Paulo 15,917,015 (6,707,847) 3,724 - 4,818,734 12 (14,813) (625,373) 13,391,452 Software license of use 468,125 - 4,774 - 54,790 686 - (70,200) 458,175 Total 33,466,132 (10,387,715) 1,144,728 - 6,168,710 (1,471) (24,866) (1,353,058) 29,012,460 (*) Work in progress transferred to contract assets due to adoption of IFRS 15, as of January 1, 2018, as described in Note 4.1. (**) Work in progress transferred from contract assets to intangible assets. |
Schedule of liabilities assumed | The obligations assumed by the Company as of December 31, 2020 and 2019 are shown in the table below: December 31, 2020 December 31, 2019 Current liabilities Noncurrent liabilities Total liabilities Current liabilities Noncurrent liabilities Total liabilities Alto Tietê 59,429 149,726 209,155 44,003 208,217 252,220 São Lourenço 70,778 2,895,340 2,966,118 66,288 2,975,472 3,041,760 Total 130,207 3,045,066 3,175,273 110,291 3,183,689 3,293,980 |
Schedule of right of use | Details of right of use asset are as follows: Nature December 31, 2020 December 31, 2019 Leases - Contract Assets 276,893 276,893 Leases - Concession Agreements and Program Contracts Cost 405,426 405,426 Accumulated amortization (135,865) (112,602) (=) Net 269,561 292,824 Other assets Vehicles 115,208 91,709 Properties 15,508 13,309 Equipment 4,541 3,801 Other assets 6,525 4,414 Accumulated amortization (99,106) (42,535) (=) Net 42,676 70,698 Right of use 589,130 640,415 |
Schedule of income statement impact | The table below shows the impact in the income statements: Impact in the income statement December 31, 2020 December 31, 2019 Right-of-use amortization (79,834) (65,413) Financial result – interest expenses (62,956) (54,791) Short-term and low-value lease expenses (13,845) (51,855) Decrease of the income of the year (156,635) (172,059) |
16 Property, plant and equipm_2
16 Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Schedule of statement of financial position details | December 31, 2020 December 31, 2019 Cost Accumulated depreciation Net Depreciation average rate Cost Accumulated depreciation Net Depreciation average rate Land 94,213 - 94,213 - 92,962 - 92,962 - Buildings 86,860 (41,513) 45,347 2.1% 82,143 (40,438) 41,705 2.1% Equipment 372,103 (271,087) 101,016 14.8% 402,850 (250,577) 152,273 16.3% Transportation equipment 10,319 (7,350) 2,969 9.9% 8,946 (6,962) 1,984 9.9% Furniture and fixtures 31,232 (13,813) 17,419 6.7% 31,365 (13,146) 18,219 6.7% Other 7,618 (331) 7,287 4.9% 7,559 (309) 7,250 5.0% Total 602,345 (334,094) 268,251 11.2% 625,825 (311,432) 314,393 12.5% |
Schedule of changes in property, plant, and equipment | December 31, 2019 Additions Transfers Write-offs and disposals Depreciation December 31, 2020 Land 92,962 - 1,251 - - 94,213 Buildings 41,705 5,430 (713) - (1,075) 45,347 Equipment 152,273 26,055 (49,188) (174) (27,950) 101,016 Transportation equipment 1,984 298 1,351 - (664) 2,969 Funiture and fixtures 18,219 4,087 (3,712) (103) (1,072) 17,419 Other 7,250 6,537 (6,446) - (54) 7,287 Total 314,393 42,407 (57,457) (277) (30,815) 268,251 December 31, 2018 Additions Transfers Write-offs and disposals Depreciation December 31, 2019 Land 92,979 - (17) - - 92,962 Buildings 40,125 3,497 15 - (1,932) 41,705 Equipment 116,086 63,216 3,149 (429) (29,749) 152,273 Transportation equipment 3,473 308 (1,117) (2) (678) 1,984 Furniture and fixtures 13,578 5,266 734 (162) (1,197) 18,219 Other 1,371 5,872 66 - (59) 7,250 Total 267,612 78,159 2,830 (593) (33,615) 314,393 December 31, 2017 Additions Transfers Write-offs and disposals Depreciation December 31, 2018 Land 92,507 - 472 - - 92,979 Buildings 42,360 73 - - (2,308) 40,125 Equipment 103,803 46,473 986 (81) (35,095) 116,086 Transportation equipment 3,680 589 - - (796) 3,473 Furniture and fixtures 11,816 2,972 - (27) (1,183) 13,578 Other 884 538 - - (51) 1,371 Total 255,050 50,645 1,458 (108) (39,433) 267,612 |
17 Borrowings and financing (Ta
17 Borrowings and financing (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Borrowings [abstract] | |
Schedule of borrowings and financing outstanding | Borrowings and financing outstanding balance December 31, 2020 December 31, 2019 Financial institution Current Noncurrent Total Current Noncurrent Total Local currency 10st issue debentures - - - 41,021 - 41,021 12nd issue debentures 45,450 158,425 203,875 45,450 203,829 249,279 14th issue debentures 51,873 24,205 76,078 41,940 63,012 104,952 17th issue debentures 91,850 183,335 275,185 289,211 263,226 552,437 18th issue debentures 45,918 135,105 181,023 34,239 133,679 167,918 21st issue debentures 175,000 174,769 349,769 150,000 349,660 499,660 22nd issue debentures 99,969 678,149 778,118 - 765,689 765,689 23rd issue debentures - 864,678 864,678 - 864,603 864,603 24th issue debentures - 414,994 414,994 - 395,855 395,855 25th issue debentures 1,442,610 - 1,442,610 - - - 26th issue debentures - 1,047,767 1,047,767 - - - 27th issue debentures - 997,000 997,000 - - - Brazilian Federal Savings Bank 90,382 1,324,459 1,414,841 83,519 1,341,660 1,425,179 Brazilian Development Bank - BNDES PAC 13,185 20,247 33,432 11,184 27,854 39,038 Brazilian Development Bank - BNDES PAC II 9751 7,159 37,447 44,606 6,990 40,685 47,675 Brazilian Development Bank - BNDES PAC II 9752 4,851 25,470 30,321 3,913 24,457 28,370 Brazilian Development Bank - BNDES ONDA LIMPA 26,751 86,809 113,560 23,704 100,582 124,286 Brazilian Development Bank - BNDES TIETÊ III 86,823 542,519 629,342 52,874 383,191 436,065 Brazilian Development Bank - BNDES 2015 33,558 454,126 487,684 31,712 460,646 492,358 Brazilian Development Bank - BNDES 2014 5,143 23,017 28,160 4,659 25,411 30,070 Inter-American Development Bank - BID 2202 181,349 2,524,798 2,706,147 - - - Inter-American Development Bank - BID INVEST 44,815 898,060 942,875 - - - Leases (Concession Agreements, Program Contracts and Contract Assets) 28,847 399,896 428,743 27,314 432,357 459,671 Leases (Others) 36,576 9,300 45,876 51,088 23,365 74,453 Other 3,778 11,382 15,160 1,665 8,207 9,872 Interest and charges 158,918 - 158,918 77,460 - 77,460 Total in local currency 2,674,805 11,035,957 13,710,762 977,943 5,907,968 6,885,911 Borrowings and financing outstanding balance December 31, 2020 December 31, 2019 Financial institution Current Noncurrent Total Current Noncurrent Total Foreign currency Inter-American Development Bank - BID 1212 – US$51,390 thousand (US$61,668 thousand in December 2019) 53,412 213,649 267,061 41,428 207,140 248,568 Inter-American Development Bank - BID 2202 – (US$510,573 thousand in December 2019) - - - 128,623 1,914,298 2,042,921 Inter-American Development Bank - BID 4623 – US$10,220 thousand - 46,474 46,474 - - - International Bank of Reconstruction and Development -BIRDs 7662 e 8906 – US$82,792 thousand (US$88,871 thousand in December 2019) 31,594 393,949 425,543 24,505 330,898 355,403 Eurobonds – (US$350,000 thousand in December 2019) - - - 1,409,921 - 1,409,921 JICA 15 – ¥10,371,870 thousand (¥11,524,300 thousand in December 2019) 58,117 464,936 523,053 42,813 385,315 428,128 JICA 18 – ¥9,325,440 thousand (¥10,361,600 thousand in December 2019) 52,253 417,846 470,099 38,493 346,237 384,730 JICA 17 – ¥3,349,203 thousand (¥2,830,420 thousand in December 2019) 11,260 156,738 167,998 12,466 91,845 104,311 JICA 19 – ¥29,923,047 thousand (¥31,736,565 thousand in December 2019) 91,456 1,415,683 1,507,139 67,372 1,109,644 1,177,016 BID 1983AB – US$23,077 thousand (US$40,769 thousand in December 2019) 39,975 78,943 118,918 71,312 91,521 162,833 Interest and charges 21,577 - 21,577 44,967 - 44,967 Total in foreign currency 359,644 3,188,218 3,547,862 1,881,900 4,476,898 6,358,798 Total borrowings and financing 3,034,449 14,224,175 17,258,624 2,859,843 10,384,866 13,244,709 |
Schedule of borrowings terms | Local currency Guarantees Maturity Annual interest rates Inflation adjustment 10th issue debentures Own funds 2020 TJLP +1.92% (Series 1 and 3) and 9.53% (Series 2) IPCA (Series 2) 12nd issue debentures Own funds 2025 TR + 9.5% 14th issue debentures Own funds 2022 TJLP +1.92% (Series 1 and 3) and 9.19% (Series 2) IPCA (Series 2) 17th issue debentures Own funds 2023 CDI +0.75% (Series 1) and 4.5% (Series 2) and 4.75% (Series 3) IPCA (Series 2 and 3) 18th issue debentures Own funds 2024 TJLP 1.92 % (Series 1 and 3) and 8.25% (Series 2) IPCA (Series 2) 21st issue debentures Own funds 2022 CDI + 0.60% e CDI+ 0.90% 22nd issue debentures Own funds 2025 CDI +0.58% (Series 1) and CDI + 0.90% (Series 2) and 6.0% (Series 3) IPCA (Series 3) 23rd issue debentures Own funds 2027 CDI +0.49% (Series 1) and CDI + 0.63% (Series 2) 24th issue debentures Own funds 2029 3.20% (Series 1) and 3.37% (Series 2) IPCA (Series 1 and 2) 25th issue debentures Own funds 2021 CDI + 3.3% 26th issue debentures Own funds 2030 4.65% (series 1) and 4.95% (series 2) IPCA (series 1 and 2) 27th issue debentures Own funds 2027 CDI +1.60% (Series 1) and CDI + 1.80% (Series 2) and 2.25% (Series 3) Brazilian Federal Savings Bank Own funds 2021/2042 5% to 9.5% TR Brazilian Development Bank - BNDES PAC Own funds 2023 TJLP+1.82% Brazilian Development Bank - BNDES PAC II 9751 Own funds 2027 TJLP+1.72% Brazilian Development Bank - BNDES PAC II 9752 Own funds 2027 TJLP+1.72% Brazilian Development Bank - BNDES ONDA LIMPA Own funds 2025 TJLP+1.92% Brazilian Development Bank - BNDES TIETÃ III Own funds 2028 TJLP+1.66% Brazilian Development Bank - BNDES 2015 Own funds 2035 TJLP+2.18% Brazilian Development Bank - BNDES 2014 Own funds 2026 TJLP+1.76% Inter-American Development Bank â BID 2202 Government 2035 CDI+0.86% Inter-American Development Bank â BID INVEST Own funds 2034 CDI+1.90% and CDI+2.70% Â Leases (Concession Agreements, Program Contracts and Contract Assets) 2035 7.73% to 10.12% IPC Â Leases (Others) 2023 4.24% to 9.29% Other Own funds 2025 3% (FEHIDRO) and TJLP + 1.5% (FINEP) Foreign currency Guarantees Maturity Annual interest rates Exchange rate changes Inter-American Development Bank - BID 1212 - US$51,390 thousand Government 2025 3.31% (*) US$ Inter-American Development Bank - BID 4623 - US$10,220 thousand Government 2044 1.12% (*) US$ International Bank for Reconstruction and Development – BIRDs 7662 and 8906 - US$82,792 thousand Government 2034 2.85% (*) US$ JICA 15 – ¥10,371,870 thousand Government 2029 1.8% and 2.5% Yen JICA 18 – ¥9,325,440 thousand Government 2029 1.8% and 2.5% Yen JICA 17– ¥3,349,203 thousand Government 2035 1.2% and 0.01% Yen JICA 19– ¥29,923,047 thousand Government 2037 1.7% and 0.01% Yen BID 1983AB – US$23,077 thousand - 2023 2.08% to 2.38% (*) US$ (*)Rates comprising LIBOR + contractually defined spread. |
Schedule of borrowings payment schedule | 2021 2022 2023 2024 2025 2026 2027 to 2044 TOTAL LOCAL CURRENCY Debentures 1,952,670 582,192 681,272 918,988 485,012 378,849 1,632,114 6,631,097 Brazilian Federal Savings Bank 90,382 95,391 88,779 87,749 93,243 99,082 860,215 1,414,841 BNDES 177,470 177,472 171,350 164,288 144,093 134,841 397,591 1,367,105 BID 2202 181,349 181,349 181,349 181,349 181,349 181,349 1,618,053 2,706,147 BID INVEST 44,815 89,630 89,630 89,630 89,630 89,630 449,910 942,875 Leases (Concession Agreements, Program Contracts and Contract Assets) 28,847 32,663 35,004 38,017 41,387 36,536 216,289 428,743 Leases (Others) 36,576 8,892 408 - - - - 45,876 Other 3,778 4,038 3,977 1,757 1,610 - - 15,160 Interest and charges 159,918 - - - - - - 159,918 TOTAL IN LOCAL CURRENCY 2,674,805 1,171,627 1,251,769 1,481,778 1,036,324 920,287 5,174,172 13,710,762 FOREIGN CURRENCY BID 53,412 53,412 53,412 53,412 54,810 2,795 42,282 313,535 BIRD 31,594 31,594 31,594 31,594 31,594 31,594 235,979 425,543 JICA 213,086 213,086 213,086 213,086 213,086 213,086 1,389,773 2,668,289 BID 1983AB 39,975 39,975 38,968 - - - - 118,918 Interest and charges 21,577 - - - - - - 44,967 TOTAL IN FOREIGN CURRENCY 359,644 338,067 337,060 298,092 299,490 247,475 1,668,034 3,547,862 Overall Total 3,034,449 1,509,694 1,588,829 1,779,870 1,335,814 1,167,762 6,842,206 17,258,624 |
Schedule of changes in borrowings | December 31, 2019 Foreign/local currency translation Addition (lease) Funding Borrowing costs Monetary and exchange variation Inflation adjustment / exchange variation and incorporated interest – Capitalized Interest paid Amortization Accrued interest Provision for interest and fees – Capitalized Expenses with borrowing costs December 31, 2020 LOCAL CURRENCY Debentures 3,711,228 - - 3,507,640 (52,328) 86,939 - (161,494) (572,871) 201,150 26,073 10,167 6,756,504 Brazilian Federal Savings Bank 1,429,250 - - 74,485 - - - (111,601) (84,821) 73,067 38,452 - 1,418,832 BNDES 1,201,411 - - 213,514 - - - (47,164) (81,213) 47,668 36,427 259 1,370,902 BID 2202 - 2,807,371 - - - - - (37,613) (90,674) 22,668 27,886 557 2,730,195 BID INVEST - - - 950,000 (7,125) - - - - 1,638 - - 944,513 Leases (Concession Agreements, Program Contracts and Contract Assets) 459,671 - - - - - - (51,431) (30,928) 51,431 - - 428,743 Leases (Others) 74,453 - 28,549 - - - - (9,108) (56,571) 8,553 - - 45,876 Other 9,898 - - 7,250 - - - (671) (1,962) 651 31 - 15,197 TOTAL IN LOCAL CURRENCY 6,885,911 2,807,371 28,549 4,752,889 (59,453) 86,939 - (419,082) (919,040) 406,826 128,869 10,983 13,710,762 FOREIGN CURRENCY BIDs 2,316,190 (2,807,371) - 52,141 (6,635) 845,246 48,246 (45,010) (121,088) 10,490 24,695 398 317,302 BIRD 357,880 - - - (2,029) 102,029 1,217 (7,572) (31,216) 5,659 752 140 426,860 Eurobonds 1,413,956 - - - - 457,931 - (104,170) (1,868,676) 90,941 9,195 823 - JICA 2,106,908 - - 40,830 (117) 715,956 17,841 (43,758) (200,597) 40,172 6,897 189 2,684,321 BID 1983AB 163,864 - - - (152) 59,078 - (7,033) (103,482) 5,843 618 643 119,379 TOTAL IN FOREIGN CURRENCY 6,358,798 (2,807,371) - 92,971 (8,933) 2,180,240 67,304 (207,543) (2,325,059) 153,105 42,157 2,193 3,547,862 TOTAL 13,244,709 - 28,549 4,845,860 (68,386) 2,267,179 67,304 (626,625) (3,244,099) 559,931 171,026 13,176 17,258,624 December 31, 2018 Addition as per IFRS 16 Funding Borrowing costs Monetary variation and exchange rate changes Inflation adjustment / exchange rate changes - Capitalized Interest paid Amortization Accrued interest Provision for interest and fees - Capitalized Amortization of borrowing costs December 31, 2019 LOCAL CURRENCY Debentures 3,486,861 - 1,266,755 (11,814) 42,692 - (234,307) (1,055,623) 195,586 17,233 3,845 3,711,228 Brazilian Federal Savings Bank 1,345,684 - 162,767 - - - (109,128) (79,404) 74,421 34,910 - 1,429,250 BNDES 1,072,605 - 256,981 (628) 2,082 826 (83,419) (131,026) 60,644 23,112 234 1,201,411 Leases (Concession Agreements, Program Contracts and Contract Assets) 568,666 - - - 1,765 3,761 (47,663) (123,880) 49,160 7,862 - 459,671 Leases (Others) (*) - 113,233 - - - - (1,141) (42,646) 5,007 - - 74,453 Other 9,571 - 1,683 - 28 - (655) (1,383) 652 2 - 9,898 TOTAL IN LOCAL CURRENCY 6,483,387 113,233 1,688,186 (12,442) 46,567 4,587 (476,313) (1,433,962) 385,470 83,119 4,079 6,885,911 FOREIGN CURRENCY BID 2,399,985 - - - 40,594 49,387 (83,602) (171,892) 26,332 54,431 955 2,316,190 BIRD 356,420 - 2,540 (2,540) 12,575 1,657 (10,627) (12,273) 8,548 1,561 19 357,880 Deutsche Bank 292,872 - - - 13,255 - (18,562) (303,866) 12,929 1,240 2,132 - Eurobonds 1,358,412 - - - 54,565 - (102,883) - 94,095 8,943 824 1,413,956 JICA 2,036,128 - 117,861 (112) 104,027 3,675 (35,001) (155,064) 32,194 3,013 187 2,106,908 BID 1983AB 225,592 - - (105) 8,943 - (10,338) (71,141) 9,111 870 932 163,864 TOTAL IN FOREIGN CURRENCY 6,669,409 - 120,401 (2,757) 233,959 54,719 (261,013) (714,236) 183,209 70,058 5,049 6,358,798 Overall Total 13,152,796 113,233 1,808,587 (15,199) 280,526 59,306 (737,326) (2,148,198) 568,679 153,177 9,128 13,244,709 (*) The amount presented in Funding for Leasing (IFRS 16) includes R$ 64,955 referring to the initial adoption of the standard on January 1, 2019. December 31, 2017 Funding Borrowings costs Monetary variation and exchange rate changes Inflation adjustment / update incorporated interest - Capitalized Interest and fees paid Amortization Accrued interest Interest and fees – Capitalized (*) Borrowings costs - expenses December 31, 2018 LOCAL CURRENCY Debentures 3,576,842 750,000 (3,021) 62,676 - (259,175) (905,080) 226,810 34,409 3,400 3,486,861 Brazilian Federal Savings Bank 1,236,674 194,244 - - - (102,772) (85,515) 75,668 27,385 - 1,345,684 BNDES 1,042,036 131,000 - 3,438 4,001 (90,397) (102,314) 28,909 55,725 207 1,072,605 Leases 561,616 - - - 6,366 (38,196) (17,427) 40,290 16,017 - 568,666 Other 10,977 - - 69 - (772) (1,470) 763 4 - 9,571 TOTAL IN LOCAL CURRENCY 6,428,145 1,075,244 (3,021) 66,183 10,367 (491,312) (1,111,806) 372,440 133,540 3,607 6,483,387 FOREIGN CURRENCY BID 1,743,257 484,690 (2,365) 237,433 53,208 (55,391) (130,520) 26,910 41,878 885 2,399,985 BIRD 303,278 - - 48,279 3,462 (7,607) - 6,945 2,044 19 356,420 Deutsche Bank 496,726 - - 62,918 - (35,207) (268,508) 28,862 4,454 3,627 292,872 Eurobonds 1,158,642 - - 198,380 - (97,952) - 85,072 13,448 822 1,358,412 JICA 1,700,448 80,196 (191) 329,638 6,787 (33,519) (82,608) 33,992 1,209 176 2,036,128 BID 1983AB 270,470 - - 39,241 - (11,060) (85,306) 9,681 1,488 1,078 225,592 TOTAL IN FOREIGN CURRENCY 5,672,821 564,886 (2,556) 915,889 63,457 (240,736) (566,942) 191,462 64,521 6,607 6,669,409 Overall Total 12,100,966 1,640,130 (5,577) 982,072 73,824 (732,048) (1,678,748) 563,902 198,061 10,214 13,152,796 (*) amount related to accrued interest which as part of the contract assets. |
Schedule of funding | On April 2020, the 25 th Value Maturity Remuneration Single series R$ 1,450,000 10/2021 CDI + 3.3 p.a. On July 2020, the 26 th Value Maturity Remuneration Series 1 R$ 600,000 07/2027 IPCA+ 4.65% p.a. Series 2 R$ 445,000 07/2030 IPCA+ 4.95% p.a. On December 2020, the 27 th Value Maturity Remuneration Series 1 R$ 300,000 12/2023 CDI+ 1,60 p.a. Series 2 R$ 400,000 12/2025 CDI+ 1,80 p.a. Series 3 R$ 300,000 12/2027 CDI+ 2,25 p.a. |
Schedule of BID investwas raised | On December 2020, BID INVEST was raised, in the amount of R$ 950,000, as follows: Value Maturity Remuneration Tranche – Medium Term R$ 442,000 08/2029 CDI+ 1.90 p.a. Tranche - Long Term R$ 508,000 08/2034 CDI+ 2.70 p.a. |
Schedule of restrictive covenants ratios | The table below shows the more restrictive covenants ratios as of December 31, 2020. Restrictive Ratios Adjusted EBITDA / Adjusted Financial Expenses Equal to or higher than 2.80 Adjusted Net Debt / Adjusted EBITDA Equal to or lower than 3.80 Adjusted Total Debt / Adjusted EBITDA Lower than 3.65 Other Onerous Debt (1) Equal to or lower than 1.30 Adjusted Current Ratio Higher than 1.00 EBITDA / Paid Financial Expenses Equal to or higher than 2.35 Net Debt / Adjusted EBITDA Equal to or lower than 3.50 (1) “Other Onerous Debts” correspond to the sum of pension obligations and health care plan, installment payment of tax debts and installment payment of debts with the electricity supplier. |
Schedule of borrowings and financing - Credit Limits | Agent December 31, 2020 (in millions of reais (*)) Brazilian Federal Savings Bank 1,485 Brazilian Development Bank – BNDES 708 Japan International Cooperation Agency – JICA 85 Inter-American Development Bank – BID 1,506 International Bank for Reconstruction and Development - IBRD 1,296 Other 51 TOTAL 5,131 (*) Brazilian Central Bank’s exchange sell rate as of December 30, 2020 (US$ 1.00 = R$ 5.1967; ¥ 1.00 = R$ 0.05043). |
18 Taxes recoverable_payable (T
18 Taxes recoverable/payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Taxes Recoverablepayable | |
Schedule of current tax assets | December 31, 2020 December 31, 2019 Recoverable taxes Income tax and social contribution - 136,436 Withholding income tax (IRRF) on financial investments 4,391 1,359 Other federal taxes 18,281 3,471 Total 22,672 141,266 |
Schedule of current tax liabilities | December 31, 2020 December 31, 2019 Taxes and contributions payable Income tax and social contribution 69,041 - Cofins and Pasep 92,601 94,027 INSS (social security contribution) 37,599 39,404 IRRF (withholding income tax) 21,287 69,932 Other 45,291 46,955 Total 266,819 250,318 |
19 Deferred taxes and contrib_2
19 Deferred taxes and contributions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Taxes And Contributions | |
Schedule of deferred taxes | December 31, 2020 December 31, 2019 Deferred income tax assets Provisions 436,445 366,673 Pension obligations - G1 154,498 157,998 Donations of underlying asset on concession agreements 50,142 51,818 Credit losses 155,719 145,622 Other 134,932 183,147 Total deferred tax assets 931,736 905,258 Deferred income tax liabilities Temporary difference on concession of intangible asset (388,675) (408,732) Capitalization of borrowing costs (390,211) (409,236) Profit on supply to government entities (356,513) (372,289) Actuarial gain/loss – G1 Plan (48,979) (54,222) Construction margin (48,843) (83,399) Borrowing costs (19,231) (11,376) Total deferred tax liabilities (1,252,452) (1,339,254) Deferred tax assets (liabilities), net (320,716) (433,996) |
Schedule of realization | December 31, 2020 December 31, 2019 Deferred income tax assets to be realized within 12 months 263,580 189,740 to be realized after one year 668,156 715,518 Total deferred tax asset 931,736 905,258 Deferred income tax liabilities to be realized within 12 months (31,388) (35,954) to be realized after one year (1,221,064) (1,303,300) Total deferred tax liabilities (1,252,452) (1,339,254) Deferred tax liability (320,716) (433,996) |
Schedule of changes | Deferred income tax assets December 31, Net change December 31, Provisions 366,673 69,772 436,445 Pension obligations - G1 157,998 (3,500) 154,498 Donations of underlying asset on concession agreements 51,818 (1,676) 50,142 Credit losses 145,622 10,097 155,719 Other 183,147 (48,215) 134,932 Total 905,258 26,478 931,736 Deferred income tax liabilities Temporary difference on concession of intangible asset (408,732) 20,057 (388,675) Capitalization of borrowing costs (409,236) 19,025 (390,211) Profit on supply to governmental entities (372,289) 15,776 (356,513) Actuarial (gain)/loss – G1 (54,222) 5,243 (48,979) Construction margin (83,399) 34,556 (48,843) Borrowing costs (11,376) (7,855) (19,231) Total (1,339,254) 86,802 (1,252,452) Deferred tax liabilities, net (433,996) 113,280 (320,716) Deferred income tax assets December 31, 2018 Net change December 31, 2019 Provisions 337,833 28,840 366,673 Pension obligations - G1 157,044 954 157,998 Donations of underlying asset on concession agreements 54,131 (2,313) 51,818 Credit losses 197,920 (52,298) 145,622 Other 186,887 (3,740) 183,147 Total 933,815 (28,557) 905,258 Deferred income tax liabilities Temporary difference on concession of intangible asset (433,842) 25,110 (408,732) Capitalization of borrowing costs (420,978) 11,742 (409,236) Profit on supply to governmental entities (206,978) (165,311) (372,289) Actuarial (gain)/loss – G1 (36,430) (17,792) (54,222) Construction margin (86,164) 2,765 (83,399) Borrowing costs (10,665) (711) (11,376) Total (1,195,057) (144,197) (1,339,254) Deferred tax assets (liabilities), net (261,242) (172,754) (433,996) Deferred income tax assets December 31, 2017 Net change December 31, 2018 Provisions 482,863 (145,030) 337,833 Pension obligations - G1 165,503 (8,459) 157,044 Donations of underlying asset on concession agreements 55,112 (981) 54,131 Credit losses 199,063 (1,143) 197,920 Other 151,562 35,325 186,887 Total 1,054,103 (120,288) 933,815 Deferred income tax liabilities Temporary difference on concession of intangible asset (460,177) 26,335 (433,842) Capitalization of borrowing costs (415,379) (5,599) (420,978) Profit on supply to governmental entities (76,705) (130,273) (206,978) Actuarial (gain)/loss – G1 (36,538) 108 (36,430) Construction margin (88,947) 2,783 (86,164) Borrowing costs (13,111) 2,446 (10,665) Total (1,090,857) (104,200) (1,195,057) Deferred tax assets (liabilities), net (36,754) (224,488) (261,242) December 31, 2020 December 31, 2019 December 31, 2018 Opening balance (433,996) (261,242) (36,754) Net change in the year: - corresponding entry to the income statement 108,037 (154,962) (224,596) - corresponding entry to valuation adjustments to equity (Note 21 (b)) 5,243 (17,792) 108 Total net change 113,280 (172,754) (224,488) Closing balance (320,716) (433,996) (261,242) |
Schedule of reconciliation of the effective tax rate | December 31, 2020 December 31, 2019 December 31, 2018 Profit before income taxes 1,326,002 4,677,942 3,912,319 Statutory rate 34% 34% 34% Estimated expense at statutory rate (450,841) (1,590,500) (1,330,186) Tax benefit of interest on equity 126,604 312,339 264,816 Permanent differences Provision – Law 4,819/1958 – G0 (i) (37,675) (44,426) (46,544) Donations (8,672) (19,888) (13,068) Other differences 17,900 32,050 47,731 Income tax and social contribution (352,684) (1,310,425) (1,077,251) Current income tax and social contribution (460,721) (1,155,463) (852,655) Deferred income tax and social contribution 108,037 (154,962) (224,596) Effective rate 27% 28% 28% (i) Permanent difference related to the provision for actuarial liability (Note 21 (b) (ii)). |
20 Provisions (Tables)
20 Provisions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provisions [abstract] | |
Schedule of lawsuits and proceedings that resulted in provisions | December 31, 2020 December 31, 2019 Provisions Escrow deposits Provisions net of deposits Provisions Escrow deposits Provisions net of deposits Customer claims (i) 160,705 (10,553) 150,152 253,665 (9,973) 243,692 Supplier claims (ii) 410,734 (358) 410,376 153,654 (298) 153,356 Other civil claims (iii) 86,083 (2,505) 83,578 93,910 (16,496) 77,414 Tax claims (iv) 59,678 (2,410) 57,268 59,143 (3,518) 55,625 Labor claims (v) 316,880 (15,503) 301,377 325,129 (12,329) 312,800 Environmental claims (vi) 249,582 (31) 249,551 192,950 (29) 192,921 Total 1,283,662 (31,360) 1,252,302 1,078,451 (42,643) 1,035,808 Current 760,209 - 760,209 550,247 - 550,247 Noncurrent 523,453 (31,360) 492,093 528,204 (42,643) 485,561 |
Schedule of changes in provisions | December 31, 2019 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used (reversal) December 31, 2020 Customer claims (i) 253,665 16,465 19,638 (78,640) (50,423) 160,705 Supplier claims (ii) 153,654 149,566 201,259 (68,801) (24,944) 410,734 Other civil claims (iii) 93,910 15,944 11,109 (23,009) (11,871) 86,083 Tax claims (iv) 59,143 4,333 2,737 (1,875) (4,660) 59,678 Labor claims (v) 325,129 61,782 35,541 (61,039) (44,533) 316,880 Environmental claims (vi) 192,950 35,392 27,718 - (6,478) 249,582 Subtotal 1,078,451 283,482 298,002 (233,364) (142,909) 1,283,662 Escrow deposits (42,643) (12,907) (2,225) 18,675 7,740 (31,360) Total 1,035,808 270,575 295,777 (214,689) (135,169) 1,252,302 December 31, 2018 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used (reversal) December 31, 2019 Customer claims (i) 290,649 57,314 53,929 (99,379) (48,848) 253,665 Supplier claims (ii) 67,985 54,223 102,686 (42,948) (28,292) 153,654 Other civil claims (iii) 98,302 28,888 18,713 (9,766) (42,227) 93,910 Tax claims (iv) 63,335 11,821 2,918 (4,982) (13,949) 59,143 Labor claims (v) 302,935 167,995 61,483 (112,084) (95,200) 325,129 Environmental claims (vi) 170,419 42,198 24,358 (312) (43,713) 192,950 Subtotal 993,625 362,439 264,087 (269,471) (272,229) 1,078,451 Escrow deposits (100,763) (14,051) (11,844) 19,191 64,824 (42,643) Total 892,862 348,388 252,243 (250,280) (207,405) 1,035,808 December 31, 2017 Additional provisions Interest and inflation adjustment Use of the accrual Amounts not used (reversal) December 31, 2018 Customer claims (i) 438,619 29,732 40,749 (141,421) (77,030) 290,649 Supplier claims (ii) 332,037 36,100 21,161 (308,253) (13,060) 67,985 Other civil claims (iii) 114,544 22,578 12,939 (16,146) (35,613) 98,302 Tax claims (iv) 77,100 10,763 4,157 (2,490) (26,195) 63,335 Labor claims (v) 299,842 83,499 32,290 (44,900) (67,796) 302,935 Environmental claims (vi) 160,446 33,392 18,294 (115) (41,598) 170,419 Subtotal 1,422,588 216,064 129,590 (513,325) (261,292) 993,625 Escrow deposits (344,384) (53,205) (5,533) 269,248 33,111 (100,763) Total 1,078,204 162,859 124,057 (244,077) (228,181) 892,862 |
Schedule of lawsuits deemed as contingent liabilities | Contingent liabilities, net of escrow deposits, are represented as follows: December 31, 2020 December 31, 2019 Customer claims (i) 110,508 86,061 Supplier claims (ii) 1,350,308 1,986,736 Other civil claims (iii) 758,800 679,623 Tax claims (iv) 1,253,636 1,184,811 Labor claims (v) 1,005,648 631,364 Environmental claims (vi) 5,981,837 4,864,894 Total 10,460,737 9,433,489 |
21 Employees benefits (Tables)
21 Employees benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employees Benefits | |
Schedule of pension plan benefits | December 31, 2020 December 31, 2019 G1 Plan G0 Plan Total G1 Plan G0 Plan Total Present value of the defined benefit obligations (3,112,980) (2,549,541) (5,662,521) (3,067,094) (3,046,255) (6,113,349) Fair value of the plan’s assets 2,793,927 - 2,793,927 2,752,417 - 2,752,417 Total pension plan liabilities (deficit) (319,053) (2,549,541) (2,868,594) (314,677) (3,046,255) (3,360,932) |
Schedule of reconciliation of defined benefit obligations | December 31, 2020 December 31, 2019 G1 Plan G0 Plan Total G1 Plan G0 Plan Total Plan’s liabilities Defined benefit obligation, beginning of the year (3,067,094) (3,046,255) (6,113,349) (2,532,338) (2,606,107) (5,138,445) Current service cost (40,404) - (40,404) (47,001) (227,367) (274,368) Interest costs (208,485) (206,262) (414,747) (224,429) - (224,429) Actuarial (gains)/losses recorded as other comprehensive income 64,637 521,331 585,968 (392,876) (397,597) (790,473) Benefits paid 138,366 181,645 320,011 129,550 184,816 314,366 Defined benefit obligation, end of the year (3,112,980) (2,549,541) (5,662,521) (3,067,094) (3,046,255) (6,113,349) Plan’s assets Fair value of the plan’s assets, beginning of the year 2,752,417 - 2,752,417 2,168,436 - 2,168,436 Expected return of the plan’s assets 187,317 - 187,317 192,965 - 192,965 Company’s contributions 36,010 - 36,010 36,968 - 36,968 Participant’s contributions 36,608 - 36,608 38,391 - 38,391 Benefits paid (138,366) - (138,366) (129,549) - (129,549) Actuarial gains/(losses) recorded as other comprehensive income (80,059) - (80,059) 445,206 - 445,206 Fair value of the plan’s assets, end of the year 2,793,927 - 2,793,927 2,752,417 - 2,752,417 Total pension plan liabilities (deficit) (319,053) (2,549,541) (2,868,594) (314,677) (3,046,255) (3,360,932) |
Schedule of (gains)/losses, due to changes in assumptions | December 31, 2020 December 31, 2019 December 31, 2018 G1 Plan G0 Plan Total G1 Plan G0 Plan Total G1 Plan G0 Plan Total Actuarial gains/(losses) on obligations 64,637 521,331 585,968 (392,876) (397,597) (790,473) (114,188) (10,783) (124,971) Actuarial gains/(losses) recorded as other comprehensive income (80,059) - (80,059) 445,206 - 445,206 113,869 - 113,869 Total gains/(losses) (15,422) 521,331 505,909 52,330 (397,597) (345,267) (319) (10,783) (11,102) Deferred income tax and social contribution 5,243 - 5,243 (17,792) - (17,792) 108 - 108 Equity valuation adjustments (10,179) 521,331 511,152 34,538 (397,597) (363,059) (211) (10,783) (10,994) |
Schedule of amounts recognized in income statement | December 31, 2020 December 31, 2019 December 31, 2018 G1 Plan G0 Plan Total G1 Plan G0 Plan Total G1 Plan G0 Plan Total Cost of service, net 4,608 - 4,608 8,609 227,367 235,976 (22,431) 232,248 209,817 Interest cost rates 208,485 206,262 414,747 224,429 - 224,429 213,201 - 213,201 Expected return on the plan’s assets (187,317) - (187,317) (192,965) - (192,965) (179,449) - (179,449) Amount received from State of São Paulo (undisputed) - (95,452) (95,452) - (97,300) (97,300) - (96,282) (96,282) Total expenses 25,776 110,810 136,586 40,073 130,067 170,140 11,321 135,966 147,287 |
Schedule of maturity obligations | December 31, 2020 G1 Plan G0 Plan Payment of benefits expected in 2021 177,347 169,178 Payment of benefits expected in 2022 172,477 167,263 Payment of benefits expected in 2023 167,906 164,426 Payment of benefits expected in 2024 162,648 160,721 Payment of benefits expected in 2025 or after 2,432,602 1,887,953 Total 3,112,980 2,549,541 Duration 11.88 years 9.40 years |
Schedule of actuarial assumptions | December 31, 2020 December 31, 2019 December 31, 2018 G1 Plan G0 Plan G1 Plan G0 Plan G1 Plan G0 Plan Discount rate – actual rate (NTN-B) 3.44% p.a. 3.07% p.a. 3.37% p.a. 3.36% p.a. 4.91% p.a. 4.84% p.a. Inflation rate 3.25% p.a. 3.25% p.a. 3.5% p.a. 3.5% p.a. 4.01% p.a. 4.01% p.a. Nominal rate of salary growth 5.32% p.a. 5.32% p.a 5.57% p.a. 5.57% p.a 6.09% p.a. 6.09% p.a Mortality table AT-2000 AT-2000 AT-2000 AT-2000 AT-2000 AT-2000 |
Schedule of sensitivity analysis of benefit plans | Sensitivity analysis of the defined benefit pension plan as of December 31, 2020 regarding the changes in the main assumptions are: Impact on the present value of the defined benefit obligations Assumptions Change in the assumption G1 G0 Discount rate Increase of 1.0% Decrease of R$ 322,111 Decrease of R$ 214,482 Decrease of 1.0% Increase of R$ 388,571 Increase of R$ 249,611 Life expectation Increase of 1 year Increase of R$ 83,576 Increase of R$ 135,263 Decrease of 1 year Decrease of R$ 75,824 Decrease of R$ 118,909 Wage growth rate Increase of 1.0% Increase of R$ 29,598 Increase of R$ 310,103 Decrease of 1.0% Decrease of R$ 25,173 Decrease of R$ 271,853 |
Schedule of benefit plan expenses recognized by employer | 2021 Cost of services, net 2,226 Interest costs 205,707 Net profitability on financial assets (184,687) Expenditures to be recognized by the employer 23,246 |
Schedule of plan assets | The plan's asset allocation management strategies are determined with the support of reports and analysis prepared by Sabesprev and independent financial advisors: December 31, 2020 % December 31, 2019 % Total fixed income 1,811,164 64.8 1,795,554 65.2 Total equities 311,958 11.2 301,707 11.0 Total structured investments 575,943 20.6 630,933 22.9 Other 94,862 3.4 24,223 0.9 Fair value of the plan’s assets 2,793,927 100 2,752,417 100 |
Schedule of expense related to defined benefit plan | 2021 Interest cost rate 158,214 Expense to be recognized 158,214 |
Schedule of reconciliation of expenses with pension obligations | December 31, 2020 December 31, 2019 December 31, 2018 G1 Plan 25,776 40,073 11,321 G0 Plan 110,810 130,067 135,966 Sabesprev Mais Plan 21,700 22,461 20,761 VIVEST Plan 58 - - Subtotal 158,344 192,601 168,048 Expenses capitalized in assets (4,904) (6,022) (5,214) Other 5,841 8,040 7,592 Pension plan obligations (Note 29) 159,281 194,619 170,426 |
24 Equity (Tables)
24 Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity | |
Schedule of subscribed and paid-in capital | As of December 31, 2020, and 2019, the authorized, subscribed and paid-in capital, in the amount of R$ 15,000.000, was composed of 683,509,869 registered, book-entry common shares with no par value, as follows: December 31, 2020 December 31, 2019 Number of shares % Number of shares % State Department of Finance (1) 343,507,729 50.26 343,524,285 50.26 Other shareholders In Brazil (2) 254,868,646 37.29 236,161,929 34.55 Abroad (3) (4) 85,133,494 12.45 103,823,655 15.19 683,509,869 100.00 683,509,869 100.00 (1) There is a lawsuit with a mandatory injunction filed under number 1051534-40.2019.8.26.0053 pending at the 7 th (2) As of December 31, 2020, the common shares traded in Brazil were held by 40,399 shareholders. It includes six shares held by Companhia Paulista de Parcerias (CPP), which is controlled by the São Paulo State Government (3) Shares traded as American Depositary Receipts (ADR) on the New York Stock Exchange, through The Bank New York Mellon, the depositary bank for the Company's ADRs. (4) Each ADR corresponds to 1 share. |
Schedule of distribution of earnings | 2020 2019 2018 Profit for the year 973,318 3,367,517 2,835,068 (-) Legal reserve - 5% 48,666 168,376 141,755 924,652 3,199,141 2,693,313 Minimum mandatory dividend – 25% 231,163 799,785 673,328 Dividend per share and per ADS 0.33820 1.17012 0.9851 |
Schedule of allocation of profit | 2020 2019 2018 Profit (+) Profit for the year 973,318 3,367,517 2,835,068 (-) Legal reserve – 5% 48,666 168,376 141,755 (-) Minimum mandatory dividends 231,163 799,785 673,328 (-) Additional proposed dividends 40,806 141,203 118,859 Investment reserve recorded 652,683 1,901,126 2,258,153 |
Schedule of other comprehensive loss | G1 plan G0 plan Total Balance as of December 31, 2019 105,254 (1,017,408) (912,154) Actuarial gains/(losses) for the year (Note 21 (b)) (10,179) 521,331 511,152 Balance as of December 31, 2020 95,075 (496,077) (401,002) |
25 Earnings per share (Tables)
25 Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Schedule of earnings per share, basic and diluted | Accordingly, basic and diluted earnings per share are equal. 2020 2019 2018 Earnings attributable to Company’s owners 973,318 3,367,517 2,835,068 Weighted average number of common shares issued 683,509,869 683,509,869 683,509,869 Basic and diluted earnings per share (reais per share) 1.42 4.93 4.15 |
26 Operating segment informat_2
26 Operating segment information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Schedule of operating segment information | 2020 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 15,157,780 3,716,616 18,874,396 Gross sales deductions (1,076,855) - (1,076,855) Net operating revenue 14.080,925 3,716,616 17,797,541 Costs, selling, general and administrative expenses (9,796,821) (3,630,139) (13,426,960) Income from operations before other operating expenses, net and equity accounting 4,284,104 86,477 4,370,581 Other operating income / (expenses), net 107,656 Equity accounting 14,136 Financial result, net (3,166,371) Income from operations before taxes 1,326,002 Depreciation and amortization (2,037,112) (2,037,112) (i) See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information; (ii) Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 15 (e). 2019 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 16,134,032 2,946,566 19,080,598 Gross sales deductions (1,096,944) - (1,096,944) Net operating revenue 15,037,088 2,946,566 17,983,654 Costs, selling, general and administrative expenses (9,375,590) (2,881,394) (12,256,984) Income from operations before other operating expenses, net and equity accounting 5,661,498 65,172 5,726,670 Other operating income / (expenses), net (18,748) Equity accounting 3,701 Financial result, net (1,033,681) Income from operations before taxes 4,677,942 Depreciation and amortization (1,780,094) (1,780,094) (i) See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information; (ii) Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 15 (e). 2018 Sanitation (i) Reconciliation to the financial statements (ii) Balance as per financial statements Gross operating revenue 14,253,609 2,802,670 17,056,279 Gross sales deductions (971,185) - (971,185) Net operating revenue 13,282,424 2,802,670 16,085,094 Costs, selling, general and administrative expenses (8,203,883) (2,739,657) (10,943,540) Income from operations before other operating expenses, net and equity accounting 5,078,541 63,013 5,141,554 Other operating income / (expenses), net 28,591 Equity accounting 6,510 Financial result, net (1,264,336) Income from operations before taxes 3,912,319 Depreciation and amortization (1,392,541) (1,392,541) (i) See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information; (ii) Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 15 (e). |
27 Insurance (Tables)
27 Insurance (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurances [abstract] | |
Schedule of insurance coverage | As of December 31, 2020, the Company’s insurance was as follows: Coverage Specified risks – fire 2,185,827 Engineering risk 2.764,278 Guarantee insurance for escrow deposit 500,000 Traditional guarantee insurance 100,000 Civil liability– D&O (Directors and Officers) 100,000 Civil liability – works 136,010 Domestic and international transportation 1 Civil liability – operations 10,000 Other 15 Total 5,796,130 |
28 Operating revenue (Tables)
28 Operating revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating Revenue | |
Schedule of operating revenue | 2020 2019 2018 Metropolitan Region of São Paulo 10,722,384 11,849,776 10,295,509 Regional Systems 4,435,396 4,284,256 3,958,100 Total 15,157,780 16,134,032 14,253,609 |
Schedule of reconciliation between gross operating income and net operating income | 2020 2019 2018 Revenue from sanitation services (i) 15,157,780 16,134,032 14,253,609 Construction revenue 3,716,616 2,946,566 2,802,670 Sales tax (1,009,358) (1,035,051) (916,808) Regulatory, Control and Oversight Fee (TRCF) (67,497) (61,893) (54,377) Net revenue 17,797,541 17,983,654 16,085,094 (i) Includes the amount of R$ 72,962 corresponding to the TRCF charged from customers from the municipalities regulated by ARSESP (R$ 70,122 in 2019). |
29 Operating costs and expens_2
29 Operating costs and expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating costs and expense [abstract] | |
Schedule of operating costs and expenses | 2020 2019 2018 Operating costs Salaries, payroll charges and benefits (1,958,395) (1,938,265) (1,959,539) Pension plan obligations (37,281) (49,564) (25,066) Construction costs (Note 26) (3,630,139) (2,881,394) (2,739,657) General supplies (244,054) (259,401) (238,034) Treatment supplies (338,756) (310,380) (265,146) Outsourced services (1,251,839) (1,250,890) (996,477) Electricity (1,214,831) (1,140,160) (956,840) General expenses (622,113) (647,804) (629,253) Depreciation and amortization (1,882,259) (1,659,779) (1,276,444) (11,179,667) (10,137,637) (9,086,456) Selling expenses Salaries, payroll charges and benefits (271,565) (270,549) (289,378) Pension plan obligations (5,059) (6,848) (3,602) General supplies (5,471) (10,332) (6,391) Outsourced services (290,512) (360,190) (273,470) Electricity (1,200) (1,333) (1,154) General expenses (118,278) (122,503) (102,213) Depreciation and amortization (59,201) (31,649) (17,272) (751,286) (803,404) (693,480) Bad debt expense, net of recoveries (Note 10 (c)) (444,826) (128,099) (166,727) Administrative expenses Salaries, payroll charges and benefits (257,829) (278,507) (254,284) Pension plan obligations (116,941) (138,207) (141,758) General supplies (14,237) (3,216) (4,881) Outsourced services (230,054) (197,357) (204,728) Electricity (1,359) (1,436) (1,363) General expenses (257,693) (407,250) (232,288) Depreciation and amortization (95,652) (88,666) (98,825) Tax expenses (77,416) (73,205) (58,750) (1,051,181) (1,187,844) (996,877) Operating costs and expenses Salaries, payroll charges and benefits (2,487,789) (2,487,321) (2,503,201) Pension obligations (159,281) (194,619) (170,426) Construction costs (Note 26) (3,630,139) (2,881,394) (2,739,657) General supplies (263,762) (272,949) (249,306) Treatment supplies (338,756) (310,380) (265,146) Outsourced services (1,772,405) (1,808,437) (1,474,675) Electricity (1,217,390) (1,142,929) (959,357) General expenses (998,084) (1,177,557) (963,754) Depreciation and amortization (2,037,112) (1,780,094) (1,392,541) Tax expenses (77,416) (73,205) (58,750) Bad debt expense, net of recoveries (Note 10 (c)) (444,826) (128,099) (166,727) (13,426,960) (12,256,984) (10,943,540) |
30 Financial income (expenses)
30 Financial income (expenses) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial income (expenses) [abstract] | |
Schedule of financial income (expenses) | 2020 2019 2018 Financial expenses Interest and charges on borrowings and financing – local currency (348,050) (331,367) (332,149) Interest and charges on borrowings and financing – foreign currency (136,257) (165,421) (171,686) Other financial expenses (328,413) (344,508) (187,563) Income tax over international remittance (15,134) (17,650) (19,779) Inflation adjustment on borrowings and financing (86,938) (44,802) (66,183) Other inflation adjustments (142,313) (107,584) (45,193) Interest and inflation adjustments on provisions (i) (267,654) (162,093) 14,586 Total financial expenses (1,324,759) (1,173,425) (807,967) Financial income Inflation adjustment gains 120,957 91,180 105,952 Income on financial investments 75,522 151,622 187,094 Interest income 162,576 150,054 175,939 Cofins and Pasep (22,328) (20,028) (22,693) Other 4 14 10 Total financial income 336,731 372,842 446,302 Financial income (expenses), net before exchange rate changes (988,028) (800,583) (361,665) Exchange gains (losses) Exchange rate changes on borrowings and financing (ii) (2,180,241) (233,960) (915,897) Exchange rate changes on assets 1,894 863 13,235 Other exchange rate changes 4 (1) (9) Exchange rate changes, net (2,178,343) (233,098) (902,671) Financial income (expenses), net (3,166,371) (1,033,681) (1,264,336) (i) Increase of R$ 105.6 million, due to the increase in interest and monetary variations on lawsuits. (ii) Increase of R$ 1,946.3 million, due to the higher appreciation of the U.S. dollar and the Yen against the Real in 2020 (28.9% and 35.8%, respectively), compared to appreciation presented in 2019 (4.0% and 5.3%, respectively). |
31 Other operating income (ex_2
31 Other operating income (expenses), net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Operating Income Expenses Net | |
Schedule of other operating income (expenses), net | 2020 2019 2018 Other operating income, net 70,288 75,667 93,089 Other operating expenses 37,368 (94,415) (64,498) Other operating income (expenses), net 107,656 (18,748) 28,591 |
32 Commitments (Tables)
32 Commitments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments | |
Schedule of commitments | Below, the main unrecorded committed amounts as of December 31, 2020: 1 year 1-3 years 3-5 years More than 5 years Total Contractual obligations – Expenses 1,301,725 633,296 142,484 684,761 2,762,266 Contractual obligations – Investments 2,211,198 1,642,792 2,103,935 174,115 6,132,040 Total 3,512,923 2,276,088 2,246,419 858,876 8,894,306 |
33 Supplemental cash flow inf_2
33 Supplemental cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Informations Abstract | |
Schedule of supplemental cash flow information | 2020 2019 2018 Total additions to contract assets (Note 14) 3,948,158 3,532,283 3,188,943 Total additions to intangible assets (Note 15 (b)) 411,285 1,788,907 1,144,728 Items not affecting cash (see breakdown below) (1,095,285) (2,125,943) (2,201,112) Total additions to intangible assets as per statement of cash flows 3,300,158 3,195,247 2,132,559 Investments and financing operations affecting intangible assets but not cash: Interest capitalized in the year (Note 15 (d)) 238,330 233,251 488,502 Contractors payable 142,514 252,675 297,872 Program contract commitments 4,422 35,817 149,974 Public Private Partnership - São Lourenço PPP (Note 15 (g)) - 10,591 273,737 Performance agreements 314,720 78,296 - Right of use 28,549 113,233 - Construction margin (Note 26) 85,976 65,172 63,013 Agreement with the Municipality of Mauá (Note 10 (a)) 280,774 - - Agreement with the Municipality of Santo André - 1,336,908 - Agreement with the municipality of Guarulhos - - 928,014 Total 1,095,285 2,125,943 2,201,112 |
1 Operations (Details)
1 Operations (Details) - Sao paulo [member] R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020BRL (R$)Municipalities | Dec. 31, 2019BRL (R$)Municipalities | ||
OperationsLineItems [Line Items] | |||
Total municipalities that have already signed contracts | Municipalities | [1] | 342 | 325 |
Balance - intangible and contract assets | R$ 39440568 | R$ 35990087 | |
Percentage of intangible and contract assets | 93.08% | 90.10% | |
Revenue from sanitation services (excluding construction revenue) | R$ 14406803 | R$ 13700777 | |
Percentage of revenue from sanitation services (excluding construction revenue) | 95.05% | 84.92% | |
Municipalities with expired: | Municipalities | 8 | 21 | |
Balance - intangible and contract assets | R$ 264931 | R$ 1637878 | |
Percentage of intangible and contract assets | 0.63% | 4.10% | |
Revenue from sanitation services (excluding construction revenue) | R$ 39088 | R$ 451603 | |
Percentage of revenue from sanitation services (excluding construction revenue) | 0.26% | 2.80% | |
Municipalities with concession agreements due by 2030: | Municipalities | 25 | 27 | |
Balance - intangible and contract assets | R$ 1436529 | R$ 1181172 | |
Percentage of intangible and contract assets | 3.39% | 2.96% | |
Revenue from sanitation services (excluding construction revenue) | R$ 597483 | R$ 588628 | |
Percentage of revenue from sanitation services (excluding construction revenue) | 3.94% | 3.65% | |
Municipality of Sao Paulo: | |||
Percentage of intangible and contract assets | 37.94% | 43.37% | |
Percentage of revenue from sanitation services (excluding construction revenue) | 44.58% | 44.48% | |
[1] | Includes the municipality of Tapiratiba, which signed a contract in October 2019, to begin operating in April 2020. |
1 Operations (Details Narrative
1 Operations (Details Narrative) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020BRL (R$)Number | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | |
OperationsLineItems [Line Items] | ||||
Number of water and sewage services operated | Number | 375 | |||
Number of services signed contract in municipalities | Number | 342 | |||
Gross revenue | R$ 804500 | R$ 215000 | ||
Intangible asset | R$ 34405575 | 32,325,447 | R$ 29012460 | R$ 33466132 |
Description of increse in revenue from residential customers | The increase in revenues from residential customers (except for the social and favela categories), in the amount of R$ 840.3 million from January to December 2020 (R$ 249.3 million from October to December 2020), and the postponement of the payment of 50% of the Regulation, Control and Inspection Fee (TRCF) from May to December 2020, for settlement in 24 installments beginning January 2021, with effect of R$ 24.0 million from May to December 2020. | |||
Description of budget adjustment | The Company adjusted budget by reducing expenses and, on April 27, 2020, July 10, 2020 and December 15, 2020, it held the 25th, 26th and 27 th issue debentures in the amounts of R$ 1.45 billion, R$ 1.05 billion and R$ 1.00 billion, respectively and also on December 7, 2020 it raised R$ 0.95 billion with IDB INVEST. As of April 28, 2020, the Company concluded the translation of a debt contracted with the Inter-American Development Bank (IDB), from US$ 494.6 million to R$ 2,810.9 million, reducing its exposure to the variation of the US dollar. In addition, as of September 30, 2020, the Company early amortized Eurobonds in the amount of R$ 1,910.1 million (US$ 357.8 million) to further reduce currency exposure and in November 2020, it signed a contract of R$ 950 million with IDB INVEST. | |||
Terms of municipalities' operations concession | 30 years | |||
Description of adverse effects due to covid-19 | Some of the economic and financial consequences arising from the COVID-19 pandemic include the following adverse effects: (i) high exchange volatility and increase in new funding costs; (ii) change in the mix of billed volume due to the increase in the residential category and decrease in the public, commercial, industrial categories, which have higher average tariffs, leading to a reduction in the total average tariff and, consequently, in revenues from customers in the commercial, industrial and public categories, in the amount of approximately R$ 804.5 million from January to December 2020 (R$ 215.0 million from October to December 31, 2020); (iii) postponement of the tariff adjustment from May 11 to August 15, 2020, with an estimate net impact of R$ 37.6 million on the operating revenue from May to December 2020; (iv) increase in default and in the expectation of higher future losses, due to the decrease in the municipalities’ revenue and the increase in bankruptcy petitions, which negatively impacted estimated losses by R$ 316.7 million from January to December 2020 compared to January to December 2019 (R$ 17.8 million from October to December 2020 compared to October to December 2019); and (v) payment exemption of water and sewage bills for consumers in the Residential Social and Residential Favela categories in all operated municipalities from April 1 to September 15, 2020, reducing revenue by R$ 116.9 million from January to September 2020, compared to the same periods in 2019. | |||
Juquitiba [member] | ||||
OperationsLineItems [Line Items] | ||||
Gross revenue | R$ 6056 | 5,616 | R$ 5786 | |
Intangible asset | R$ 77014 | R$ 80563 |
3 Summary of Significant Acco_3
3 Summary of Significant Accounting Policies (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
SummaryOfSignificantAccountingPoliciesLineItems [Line Items] | |
Description of accrued income tax | The income tax was accrued at rate 15%, plus 10% surtax on taxable income exceeding R$ 240. |
Social contribution accrued rate | 9.00% |
Annual revenue calculated rate | 0.50% |
PASEP (programa de formacao do patrimonio do servidor publico) [member] | |
SummaryOfSignificantAccountingPoliciesLineItems [Line Items] | |
Sanitation services rate | 1.65% |
Cofins (contribuicao para o financiamento da seguridade social) [member] | |
SummaryOfSignificantAccountingPoliciesLineItems [Line Items] | |
Sanitation services rate | 7.60% |
4 Changes in accounting pract_3
4 Changes in accounting practices and disclosures (Details) | 12 Months Ended | |
Dec. 31, 2020 | ||
IFRS 17 [member] | ||
ChangesInAccountingPracticesAndDisclosuresLineItems [Line Items] | ||
Standard | IFRS 17 – Insurance Contracts | [1] |
Description | Establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. IFRS 17 will supersede IFRS 4 Insurance Contracts. | [1] |
Impact | The Company does not expect effects from adopting this standard. | [1] |
Amendments to IFRS 10 and IAS 28 [member] | ||
ChangesInAccountingPracticesAndDisclosuresLineItems [Line Items] | ||
Standard | Amendments to IFRS 10 - Consolidated Statements and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | [2] |
Description | Clarify situations that involve the sale or contribution of assets between an investor and its associates or joint venture. | [2] |
Impact | The Company is assessing the impacts and effects of the amendments; however, it does not expect any effects from the amendments. | [2] |
Amendments to IAS 1 [member] | ||
ChangesInAccountingPracticesAndDisclosuresLineItems [Line Items] | ||
Standard | Amendments to IAS 1 – Classification of Liabilities as Current or Non-Current. | [1] |
Description | These amendments to IAS 1 only affect the presentation of liabilities as current or non-current in the statement of financial position and not the amount or the time of recognition of any asset, liability, income or expense, or the information disclosed on such items. In addition, clarify that the classification of liabilities as current or non-current is based on the rights existing at the balance sheet date, specify that the classification is not affected by the expectations on whether an entity will exercise its right to postpone the settlement of the liability and introduce the definition of 'settlement' to clarify that settlement refers to the transfer to a counterparty, of cash, equity instruments, other assets or services. | [1] |
Impact | The Company does not expect any impacts from this standard. | [1] |
Amendments to IFRS 3 [member] | ||
ChangesInAccountingPracticesAndDisclosuresLineItems [Line Items] | ||
Standard | Amendments to IFRS 3 – Reference to the Conceptual Framework. | [3] |
Description | The amendments update IFRS 3 so that it refers to the 2018 Conceptual Framework instead of the 1989 Structure. The amendments also include in IFRS 3 the requirement that, for obligations within the scope of IAS 37, the acquirer applies this standard to identify whether there is an obligation at the acquisition date arising from past events. For a tax within the scope of IFRIC 21 - Taxes, the acquirer applies IFRIC 21 to determine whether the event that resulted in the obligation to pay the tax occurred up to the date of acquisition date. Finally, the amendments add an explicit statement that the acquirer does not recognize contingent assets acquired in a business combination. | [3] |
Impact | The Company does not expect effects from this standard. | [3] |
Amendments to IAS 16 [member] | ||
ChangesInAccountingPracticesAndDisclosuresLineItems [Line Items] | ||
Standard | Amendments to IAS 16 – Proceeds Before Intended Use. | [3] |
Description | The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from the sale of items produced before the asset is available for use, i.e. proceeds to bring the asset to the location and in the condition necessary for it to be able to operate as intended by the Company. Consequently, the entity recognizes these proceeds from the sale and corresponding costs in the result and measures the costs of these items in accordance with IAS 2 - Inventories. The amendments further clarify the meaning of “testing whether an asset is functioning properly”. Currently, IAS 16 determines this as assessing whether the technical and physical performance of the asset is such that it can be used in the production or supply of goods or services, for rent to third parties, or for administrative purposes. If not presented separately in the statement of comprehensive income, the financial statements should disclose the amounts of resources and costs included in income corresponding to items produced that are not a product of the entity's ordinary activities, and which items in the statement of comprehensive income include these resources and costs. | [3] |
Impact | The Company does not expect effects from this standard. | [3] |
Amendments to IAS 37 [member] | ||
ChangesInAccountingPracticesAndDisclosuresLineItems [Line Items] | ||
Standard | Amendments to IAS 37 – Onerous Contracts – Cost of Compliance with the Contract. | [3] |
Description | The amendments specify that the contract's "compliance cost" comprises costs directly related to the contract, these being the incremental costs of compliance with that contract (e.g., employees or materials) and the allocation of other costs directly related to contract compliance (for example, allocation of depreciation expenses to an item of property, plant and equipment used to fulfill the contract). These amendments apply to contracts for which the entity has not yet fulfilled all of its obligations at the beginning of the annual period in which the entity applies the changes for the first time. The comparative amounts are not restated. Instead, the entity shall recognize the cumulative effect of the initial adoption of the changes as adjusting the opening balance of retained earnings (or another component of shareholders' equity, as applicable) on the date of initial adoption. | [3] |
Impact | The Company does not expect effects from this standard. | [3] |
Amendments to IFRS 9, IFRS 16,Leases and IAS 41[member] | ||
ChangesInAccountingPracticesAndDisclosuresLineItems [Line Items] | ||
Standard | Annual improvements to IFRSs: 2018-2020 Cycle Amendments to IFRS 1 – First-time Adoption of International Financial Reporting Standards1, IFRS 9 – Financial Instruments1, IFRS 16 – Leases and IAS 41 – Biological Assets and Agricultural Product | [3] |
Description | · IFRS 1 – Initial Adoption of International Accounting Standards - provides for an additional measure for a subsidiary that becomes an initial adopter after its parent company with respect to accounting for accumulated translation differences. · IFRS 9 – Financial Instruments - clarifies that when applying the “10%” test to assess whether the financial liability should be written off, the entity includes only the fees paid or received between the entity (debtor) and the creditor, including fees paid or received by the entity or creditor on behalf of the other party. · IFRS 16 – Leases - this amendment excludes the example of reimbursement of improvements to third-party properties. Since the amendment is only an illustrative example, no effective date is defined. · IAS 41 – Biological Assets and Agricultural Product - the amendment excludes the requirement for entities to exclude cash flows for taxation when measuring fair value. | [3] |
Impact | The Company does not expect effects from this standard. | [3] |
Amendments to IFRS 3 - Definition of a Business [member] | ||
ChangesInAccountingPracticesAndDisclosuresLineItems [Line Items] | ||
Standard | Amendments to IFRS 3 – Definition of a Business | |
Description | Clarifies that even though businesses usually have outputs (“products”), products are not required for an integrated set of activities and assets in order to qualify as business. In order to qualify as a business, an acquired set of activities and assets must include at least one input and a substantive process that together contribute significantly to the capacity of creating products. | |
Impact | The application of this amendment did not impact the disclosures or amounts recognized in the annual financial statements. | |
Amendments to IAS 1 and IAS 8 [member] | ||
ChangesInAccountingPracticesAndDisclosuresLineItems [Line Items] | ||
Standard | Amendments to IAS 1 and IAS 8 – Definition of Material | |
Description | The purpose of the amendments is to facilitate the understanding of the definition of material in IAS 1 and not to change the underlying concept of materiality in the IFRS Standards. The concept of “hidden” material information with immaterial information was included as part of the new definition. | |
Impact | The application of these amendments did not impact the disclosures or amounts recognized in the annual financial statements. | |
[1] | Effective for annual periods beginning on or after January 1, 2023. | |
[2] | The effective date of the amendments has not yet been defined by IASB. | |
[3] | Effective for annual periods beginning on or after January 1, 2022. |
5 Risk management (Details)
5 Risk management (Details) ¥ in Thousands, R$ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020BRL (R$) | Dec. 31, 2020USD ($) | Dec. 31, 2020JPY (¥) | Dec. 31, 2019BRL (R$) | Dec. 31, 2019USD ($) | Dec. 31, 2019JPY (¥) | |
Summary of risk management [Line Items] | ||||||
Total exposure | R$ 3563170 | R$ 6382009 | ||||
Total foreign currency-denominated borrowings | 3,547,862 | 6,358,798 | ||||
USD | ||||||
Summary of risk management [Line Items] | ||||||
Borrowings and financing | 870,338 | 4,239,817 | ||||
Interest and charges from borrowings and financing | 5,540 | 32,242 | ||||
Borrowing cost | (12,342) | (20,173) | ||||
USD | Foreign currency [member] | ||||||
Summary of risk management [Line Items] | ||||||
Borrowings and financing | $ | $ 167,479 | $ 1,051,881 | ||||
Yen | ||||||
Summary of risk management [Line Items] | ||||||
Borrowings and financing | 2,671,255 | 2,097,225 | ||||
Interest and charges from borrowings and financing | 16,037 | 12,725 | ||||
Borrowing cost | R$ 2966 | R$ 3038 | ||||
Yen | Foreign currency [member] | ||||||
Summary of risk management [Line Items] | ||||||
Borrowings and financing | ¥ | ¥ 52,969,560 | ¥ 56,452,885 |
5 Risk management (Details 1)
5 Risk management (Details 1) | Dec. 31, 2020R$ / $R$ / ¥ | Dec. 31, 2019R$ / $R$ / ¥ |
Yen | ||
Summary of risk management [Line Items] | ||
Exchange rate | R$ / ¥ | 0.05043 | 0.03715 |
Exchange rate variation | 28.90% | |
USD | ||
Summary of risk management [Line Items] | ||
Exchange rate | R$ / $ | 5.1967 | 4.0307 |
Exchange rate variation | 35.70% |
5 Risk management (Details 2)
5 Risk management (Details 2) ¥ in Thousands, R$ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020BRL (R$)R$ / $R$ / ¥Number | Dec. 31, 2020USD ($)R$ / $R$ / ¥Number | Dec. 31, 2020JPY (¥)R$ / $R$ / ¥Number | Dec. 31, 2019R$ / $R$ / ¥ | ||
USD | |||||
Summary of risk management [Line Items] | |||||
Exchange rate estimated according to the scenario | R$ / $ | 5.1967 | 5.1967 | 5.1967 | 4.0307 | |
Yen | |||||
Summary of risk management [Line Items] | |||||
Exchange rate estimated according to the scenario | R$ / ¥ | 0.05043 | 0.05043 | 0.05043 | 0.03715 | |
Scenario I (probable) [member] | |||||
Summary of risk management [Line Items] | |||||
Total effect on net financial result in R$ - gain/(loss) | R$ | [1] | R$ 10492 | |||
Scenario I (probable) [member] | USD | |||||
Summary of risk management [Line Items] | |||||
Net currency exposure | $ | [1] | $ 167,479 | |||
Currency rate | [1] | 5.1967 | 5.1967 | 5.1967 | |
Exchange rate estimated according to the scenario | [1] | 5 | 5 | 5 | |
Differences between the rates | [1] | 0.1967 | 0.1967 | 0.1967 | |
Effect on net financial result R$ - gain/(loss) | $ | [1] | $ 32,943 | |||
Scenario I (probable) [member] | Yen | |||||
Summary of risk management [Line Items] | |||||
Net currency exposure | ¥ | [1] | ¥ 52,969,560 | |||
Currency rate | [1] | 0.05043 | 0.05043 | 0.05043 | |
Exchange rate estimated according to the scenario | [1] | 0.05125 | 0.05125 | 0.05125 | |
Differences between the rates | [1] | (0.00082) | (0.00082) | (0.00082) | |
Effect on net financial result R$ - gain/(loss) | ¥ | [1] | ¥ (43,435) | |||
Scenario II (+25%) [member] | |||||
Summary of risk management [Line Items] | |||||
Total effect on net financial result in R$ - gain/(loss) | R$ | R$ 898381 | ||||
Scenario II (+25%) [member] | USD | |||||
Summary of risk management [Line Items] | |||||
Net currency exposure | $ | $ 167,479 | ||||
Currency rate | 5.1967 | 5.1967 | 5.1967 | ||
Exchange rate estimated according to the scenario | 6.2500 | 6.2500 | 6.2500 | ||
Differences between the rates | (1.0533) | (1.0533) | (1.0533) | ||
Effect on net financial result R$ - gain/(loss) | $ | $ (176,406) | ||||
Scenario II (+25%) [member] | Yen | |||||
Summary of risk management [Line Items] | |||||
Net currency exposure | ¥ | ¥ 52,969,560 | ||||
Currency rate | 0.05043 | 0.05043 | 0.05043 | ||
Exchange rate estimated according to the scenario | 0.06406 | 0.06406 | 0.06406 | ||
Differences between the rates | (0.01363) | (0.01363) | (0.01363) | ||
Effect on net financial result R$ - gain/(loss) | ¥ | ¥ (721,975) | ||||
Scenario III (+50%) [member] | |||||
Summary of risk management [Line Items] | |||||
Total effect on net financial result in R$ - gain/(loss) | R$ | R$ 1786269 | ||||
Scenario III (+50%) [member] | USD | |||||
Summary of risk management [Line Items] | |||||
Net currency exposure | $ | $ 167,479 | ||||
Currency rate | 5.1967 | 5.1967 | 5.1967 | ||
Exchange rate estimated according to the scenario | 7.5000 | 7.5000 | 7.5000 | ||
Differences between the rates | (2.3033) | (2.3033) | (2.3033) | ||
Effect on net financial result R$ - gain/(loss) | $ | $ (385,754) | ||||
Scenario III (+50%) [member] | Yen | |||||
Summary of risk management [Line Items] | |||||
Net currency exposure | ¥ | ¥ 52,969,560 | ||||
Currency rate | 0.05043 | 0.05043 | 0.05043 | ||
Exchange rate estimated according to the scenario | 0.07687 | 0.07687 | 0.07687 | ||
Differences between the rates | (0.02644) | (0.02644) | (0.02644) | ||
Effect on net financial result R$ - gain/(loss) | ¥ | ¥ (1,400,515) | ||||
[1] | For the probable scenario in US dollar, the exchange rate estimated for December 31, 2021 was used, pursuant to the BACEN Focus Report of December 31, 2020. For the Yen, the exchange estimated for December 31, 2021 was used, according to B3's Reference Rates report of December 31, 2020. |
5 Risk management (Details 3)
5 Risk management (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of risk management [Line Items] | |||
Borrowings | R$ 14185384 | R$ 9224174 | |
Certificado de deposito interbancario [member] | |||
Summary of risk management [Line Items] | |||
Borrowings | [1] | 7,836,988 | 1,866,755 |
Interest benchmark rate [member] | |||
Summary of risk management [Line Items] | |||
Borrowings | [2] | 1,619,416 | 1,675,203 |
Indice nacional de precos ao consumidor amplo [member] | |||
Summary of risk management [Line Items] | |||
Borrowings | [3] | 2,176,547 | 1,366,134 |
Taxa de juros a longo prazo [member] | |||
Summary of risk management [Line Items] | |||
Borrowings | [4] | 1,517,657 | 1,381,342 |
London interbank offered rate [member] | |||
Summary of risk management [Line Items] | |||
Borrowings | [5] | 870,337 | 2,829,073 |
Interest and charges [member] | |||
Summary of risk management [Line Items] | |||
Borrowings | R$ 164439 | R$ 105667 | |
[1] | CDI (Certificado de Deposito Interbancario), an interbank deposit certificate | ||
[2] | TR - Interest Benchmark Rate | ||
[3] | IPCA - (Indice Nacional de Precos ao Consumidor Amplo), a consumer price index | ||
[4] | TJLP - (Taxa de Juros a Longo Prazo), a long-term interest rate index | ||
[5] | LIBOR London Interbank Offered Rate |
5 Risk management (Details 4)
5 Risk management (Details 4) | 12 Months Ended |
Dec. 31, 2020 | |
Banco do brasil S/A [member] | Moody's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | Aa1.br |
Banco do brasil S/A [member] | Fitch [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | AA(bra) |
Brazilian Federal Savings Bank | Standard Poor's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | brAAA |
Brazilian Federal Savings Bank | Moody's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | Aa1.br |
Brazilian Federal Savings Bank | Fitch [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | AA(bra) |
Banco Bradesco S/A | Standard Poor's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | brAAA |
Banco Bradesco S/A | Moody's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | Aa1.br |
Banco Bradesco S/A | Fitch [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | AAA(bra) |
Itau Unibanco Holding S/A | Standard Poor's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | brAAA |
Itau Unibanco Holding S/A | Moody's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | Aa1.br |
Itau Unibanco Holding S/A | Fitch [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | AAA(bra) |
Banco BTG Pactual S/A [member] | Fitch [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | AA(bra) |
Banco BTG Pactual S/A [member] | Moody's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | Aa2.br |
Banco BTG Pactual S/A [member] | Standard Poor's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | brAA+ |
Banco santander brasil S/A [member] | Standard Poor's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | brAAA |
Banco santander brasil S/A [member] | Moody's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | Aaa.br |
Banco BV [member] | Moody's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | Aa3.br |
Banco BV [member] | Standard Poor's [member] | |
Summary of risk management [Line Items] | |
Credit rating information of the banks | brAAA |
5 Risk management (Details 5)
5 Risk management (Details 5) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of risk management [Line Items] | |||
Cash and cash equivalents and financial investments | R$ 3807547 | R$ 2253210 | |
Other [member] | |||
Summary of risk management [Line Items] | |||
Cash and cash equivalents and financial investments | [1] | 253,619 | 17,493 |
AA (bra) [member] | |||
Summary of risk management [Line Items] | |||
Cash and cash equivalents and financial investments | 2,662,685 | 2,193,725 | |
AAA(bra) [member] | |||
Summary of risk management [Line Items] | |||
Cash and cash equivalents and financial investments | R$ 891243 | R$ 41992 | |
[1] | This category includes current accounts and investment funds in banks whose balances were not significant in 2019. The amount of R$ 253,066 referring to Banco BV (no classification) was recorded in 2020. |
5 Risk management (Details 6)
5 Risk management (Details 6) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of risk management [Line Items] | ||
Borrowings and financing | R$ 21131836 | |
Accounts payables to suppliers and contractors | 263,741 | |
Services payable | 453,750 | R$ 474078 |
Public-Private Partnership - PPP | 6,154,950 | |
Program contract commitments | 245,595 | |
2021 [member] | ||
Summary of risk management [Line Items] | ||
Borrowings and financing | 3,439,199 | |
Accounts payables to suppliers and contractors | 263,741 | |
Services payable | 453,750 | |
Public-Private Partnership - PPP | 404,800 | |
Program contract commitments | 163,798 | |
2022 [member] | ||
Summary of risk management [Line Items] | ||
Borrowings and financing | 1,994,506 | |
Accounts payables to suppliers and contractors | ||
Services payable | ||
Public-Private Partnership - PPP | 405,132 | |
Program contract commitments | 33,287 | |
2023 [member] | ||
Summary of risk management [Line Items] | ||
Borrowings and financing | 2,019,520 | |
Accounts payables to suppliers and contractors | ||
Services payable | ||
Public-Private Partnership - PPP | 405,444 | |
Program contract commitments | 33,287 | |
2024 [member] | ||
Summary of risk management [Line Items] | ||
Borrowings and financing | 2,177,923 | |
Accounts payables to suppliers and contractors | ||
Services payable | ||
Public-Private Partnership - PPP | 350,342 | |
Program contract commitments | 1,045 | |
2025 [member] | ||
Summary of risk management [Line Items] | ||
Borrowings and financing | 1,672,201 | |
Accounts payables to suppliers and contractors | ||
Services payable | ||
Public-Private Partnership - PPP | 333,148 | |
Program contract commitments | 1,045 | |
2026 onwards [member] | ||
Summary of risk management [Line Items] | ||
Borrowings and financing | 9,828,487 | |
Accounts payables to suppliers and contractors | ||
Services payable | ||
Public-Private Partnership - PPP | 4,256,084 | |
Program contract commitments | R$ 13133 |
5 Risk management (Details 7)
5 Risk management (Details 7) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of risk management [Line Items] | |||
Exposure interest rate risk | R$ 3563170 | R$ 6382009 | |
Interest rate risk [member] | Scenario I (probable) [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | (264,732) | ||
Exposure interest rate risk | (121,762) | ||
Interest rate risk [member] | Scenario I (probable) [member] | Financial income [member] | |||
Summary of risk management [Line Items] | |||
Assets | 113,348 | ||
Interest rate risk [member] | Scenario II (+25%) [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | (330,916) | ||
Exposure interest rate risk | (152,203) | ||
Interest rate risk [member] | Scenario II (+25%) [member] | Interest to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | (293,887) | ||
Interest rate risk [member] | Scenario II (+25%) [member] | Financial income [member] | |||
Summary of risk management [Line Items] | |||
Assets | 141,684 | ||
Interest rate risk [member] | Scenario III (+50%) [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | (397,098) | ||
Exposure interest rate risk | (182,643) | ||
Interest rate risk [member] | Scenario III (+50%) [member] | Interest to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | (352,664) | ||
Interest rate risk [member] | Scenario III (+50%) [member] | Financial income [member] | |||
Summary of risk management [Line Items] | |||
Assets | 170,021 | ||
Interest rate risk [member] | Scenario I (+25%) [member] | Interest to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | (235,110) | ||
Interest rate risk [member] | CDI [member] | Exposure [member] | |||
Summary of risk management [Line Items] | |||
Assets | 3,778,252 | ||
Liabilities | (7,836,988) | ||
Exposure interest rate risk | R$ 4058736 | ||
Interest rate risk [member] | CDI [member] | Scenario I (probable) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Assets | [1] | 3.00% | |
Interest, Liabilities | [1] | 3.00% | |
Interest rate risk [member] | CDI [member] | Scenario II (+25%) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Assets | 3.75% | ||
Interest, Liabilities | 3.75% | ||
Interest rate risk [member] | CDI [member] | Scenario III (+50%) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Assets | 4.50% | ||
Interest, Liabilities | 4.50% | ||
Interest rate risk [member] | TR [member] | Exposure [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 1619416 | ||
Interest rate risk [member] | TR [member] | Scenario I (probable) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | [2] | 0.0001% | |
Interest rate risk [member] | TR [member] | Scenario I (probable) [member] | Expenses to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 2 | ||
Interest rate risk [member] | TR [member] | Scenario II (+25%) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | 0.0001% | ||
Interest rate risk [member] | TR [member] | Scenario II (+25%) [member] | Expenses to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 2 | ||
Interest rate risk [member] | TR [member] | Scenario III (+50%) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | 0.0002% | ||
Interest rate risk [member] | TR [member] | Scenario III (+50%) [member] | Expenses to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 3 | ||
Interest rate risk [member] | IPCA [member] | Exposure [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 2176547 | ||
Interest rate risk [member] | IPCA [member] | Scenario I (probable) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | [1] | 3.32% | |
Interest rate risk [member] | IPCA [member] | Scenario I (probable) [member] | Expenses to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 72261 | ||
Interest rate risk [member] | IPCA [member] | Scenario II (+25%) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | 4.15% | ||
Interest rate risk [member] | IPCA [member] | Scenario II (+25%) [member] | Expenses to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 90327 | ||
Interest rate risk [member] | IPCA [member] | Scenario III (+50%) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | 4.98% | ||
Interest rate risk [member] | IPCA [member] | Scenario III (+50%) [member] | Expenses to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 108392 | ||
Interest rate risk [member] | TJLP [member] | Exposure [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 1517657 | ||
Interest rate risk [member] | TJLP [member] | Scenario I (probable) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | [1] | 4.55% | |
Interest rate risk [member] | TJLP [member] | Scenario I (probable) [member] | Interest to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 69053 | ||
Interest rate risk [member] | TJLP [member] | Scenario II (+25%) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | 5.6875% | ||
Interest rate risk [member] | TJLP [member] | Scenario II (+25%) [member] | Interest to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 86317 | ||
Interest rate risk [member] | TJLP [member] | Scenario III (+50%) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | 6.825% | ||
Interest rate risk [member] | TJLP [member] | Scenario III (+50%) [member] | Interest to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 103580 | ||
Interest rate risk [member] | LIBOR [member] | Exposure [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 870337 | ||
Interest rate risk [member] | LIBOR [member] | Scenario I (probable) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | [3] | 0.19% | |
Interest rate risk [member] | LIBOR [member] | Scenario I (probable) [member] | Interest to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 1654 | ||
Interest rate risk [member] | LIBOR [member] | Scenario II (+25%) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | 0.2375% | ||
Interest rate risk [member] | LIBOR [member] | Scenario II (+25%) [member] | Interest to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 2067 | ||
Interest rate risk [member] | LIBOR [member] | Scenario III (+50%) [member] | |||
Summary of risk management [Line Items] | |||
Interest, Liabilities | 0.285% | ||
Interest rate risk [member] | LIBOR [member] | Scenario III (+50%) [member] | Interest to be incurred [member] | |||
Summary of risk management [Line Items] | |||
Liabilities | R$ 2480 | ||
[1] | Source: CDI and IPCA (BACEN Focus Report, December 31, 2020) and long-term interest rate as of December 31, 2020 (BACEN). | ||
[2] | Source: B3. | ||
[3] | Source: Bloomberg. |
5 Risk management (Details 8)
5 Risk management (Details 8) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Risk Management | ||||
Total borrowings and financing (Note 17) | R$ 17258624 | R$ 13244709 | R$ 13152796 | R$ 12100966 |
Cash and cash equivalents (Note 7) | (396,401) | (2,253,210) | (3,029,191) | (2,283,047) |
Financial investments (Note 8) | (3,411,146) | 0 | ||
Net debt | 13,451,077 | 10,991,499 | ||
Total equity | 22,793,704 | 21,635,783 | R$ 19551688 | R$ 17513009 |
Total capital (shareholders + providers of capital) | R$ 36244781 | R$ 32627282 | ||
Leverage ratio | 37.00% | 34.00% |
5 Risk management (Details 9)
5 Risk management (Details 9) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of risk management [Line Items] | ||||
Cash and cash equivalents | R$ 396401 | R$ 2253210 | R$ 3029191 | R$ 2283047 |
Financial investments | 3,411,146 | 0 | ||
Restricted cash | 35,742 | 26,018 | ||
Trade receivables | 2,450,986 | 2,353,027 | ||
Water National Agency - ANA | 26,463 | 32,466 | ||
Other receivables | 246,110 | 194,178 | ||
Borrowings and financing | 17,258,624 | 13,244,709 | R$ 13152796 | R$ 12100966 |
Accounts payables to suppliers and contractors | 263,741 | 369,631 | ||
Services payable | 453,750 | 474,078 | ||
Program contract commitments | 231,480 | 377,253 | ||
Public-Private Partnership - PPP | 3,175,273 | 3,293,980 | ||
Fair value [member] | ||||
Summary of risk management [Line Items] | ||||
Cash and cash equivalents | 396,401 | 2,253,210 | ||
Financial investments | 3,411,146 | |||
Restricted cash | 35,742 | 26,018 | ||
Trade receivables | 2,450,986 | 2,353,027 | ||
Water National Agency - ANA | 26,463 | 32,466 | ||
Other receivables | 246,110 | 194,178 | ||
Borrowings and financing | 17,702,649 | 13,937,611 | ||
Accounts payables to suppliers and contractors | 263,741 | 369,631 | ||
Services payable | 453,750 | 474,078 | ||
Program contract commitments | 231,480 | 377,253 | ||
Public-Private Partnership - PPP | R$ 3175273 | R$ 3293980 |
5 Risk management (Details Narr
5 Risk management (Details Narrative) R$ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020BRL (R$) | Dec. 31, 2020USD ($) | Dec. 31, 2019BRL (R$) | |
RiskManagementLineItems [Line Items] | |||
Total exposure | R$ 3563170 | R$ 6382009 | |
Effects on profit for the year before taxes | R$ 141854 | R$ 92242 | |
Leverage ratio | 37.00% | 37.00% | 34.00% |
Financial instrument assets receivables from related parties | R$ 806645 | R$ 850896 | |
Reimbursement of additional retirement and pension plan | R$ 732391 | 747,579 | |
Percentage of decrease in currency due to debt | 44.20% | 44.20% | |
Liabilities related to exchange rate variation of borrowings and financing contracts | R$ 2247544 | 288,678 | |
Income before taxes | R$ 356317 | R$ 638201 | |
Description of currency exposure | Considering the other variables as remaining constant, the impacts for the next 12 months are shown in scenarios II and III with possible depreciations of 25% and 50%, respectively, in the Brazilian real. | Considering the other variables as remaining constant, the impacts for the next 12 months are shown in scenarios II and III with possible depreciations of 25% and 50%, respectively, in the Brazilian real. | |
BID 2202 contract [member] | |||
RiskManagementLineItems [Line Items] | |||
Exchange of foreign currency | R$ 2810907 | ||
USD | |||
RiskManagementLineItems [Line Items] | |||
Depreciation | 28.90% | 28.90% | |
USD | BID 2202 contract [member] | |||
RiskManagementLineItems [Line Items] | |||
Exchange of foreign currency | $ | $ 494,617 | ||
Yen | |||
RiskManagementLineItems [Line Items] | |||
Depreciation | 35.70% | 35.70% | |
Eurobonds [member] | |||
RiskManagementLineItems [Line Items] | |||
Final amortization of Eurobonds | R$ 1910124 | ||
Eurobonds [member] | USD | |||
RiskManagementLineItems [Line Items] | |||
Final amortization of Eurobonds | $ | $ 357,763 | ||
Banco BV [member] | |||
RiskManagementLineItems [Line Items] | |||
Current accounts and investment funds | R$ 253066 |
7 Cash and cash equivalents (De
7 Cash and cash equivalents (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents [abstract] | ||||
Cash and banks | R$ 74033 | R$ 176497 | ||
Cash equivalents | 322,368 | 2,076,713 | ||
Cash and cash equivalents | R$ 396401 | R$ 2253210 | R$ 3029191 | R$ 2283047 |
7 Cash and cash equivalents (_2
7 Cash and cash equivalents (Details Narrative) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Certificado de deposito interbancario [member] | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Average yield of cash equivalents | 95.82% | 98.02% |
8 Financial investments (Detail
8 Financial investments (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
FinancialInvestmentsLineItems [Line Items] | ||
Financial investments | R$ 3411146 | R$ 0 |
Banco BV [member] | ||
FinancialInvestmentsLineItems [Line Items] | ||
Financial investments | 253,066 | |
Banco Itau S/A [member] | ||
FinancialInvestmentsLineItems [Line Items] | ||
Financial investments | 354,296 | |
Banco Bradesco S/A [member] | ||
FinancialInvestmentsLineItems [Line Items] | ||
Financial investments | 506,136 | |
Banco BTG Pactual S/A [member] | ||
FinancialInvestmentsLineItems [Line Items] | ||
Financial investments | 354,299 | |
Banco do Brasil S/A [member] | ||
FinancialInvestmentsLineItems [Line Items] | ||
Financial investments | R$ 1943349 |
8 Financial investments (Deta_2
8 Financial investments (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Certificado de deposito interbancario [member] | |
FinancialInvestmentsLineItems [Line Items] | |
Average yield of financial investments | 98.95% |
9 Restricted cash (Details)
9 Restricted cash (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of restricted cash [Line Items] | |||
Restricted cash | R$ 35742 | R$ 26018 | |
Agreement with the sao paulo municipal government [member] | |||
Summary of restricted cash [Line Items] | |||
Restricted cash | [1] | 29,599 | 17,068 |
Brazilian federal savings bank - escrow deposits [member] | |||
Summary of restricted cash [Line Items] | |||
Restricted cash | [2] | 272 | 2,245 |
Other [member] | |||
Summary of restricted cash [Line Items] | |||
Restricted cash | R$ 5871 | R$ 6705 | |
[1] | Refers to the amount deducted from the 7.5% of municipal revenue transferred to the Municipal Fund for Environmental Sanitation and Infrastructure, corresponding to eventual amounts unpaid by direct management bodies, foundations and government agencies, as established in the agreement entered into with the municipal government of Sao Paulo and | ||
[2] | Refers to savings account for receiving escrow deposits regarding lawsuits with final and unappealable decisions in favor of the Company, which are blocked as per contractual clause. |
9 Restricted cash (Details Narr
9 Restricted cash (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Agreement with the sao paulo municipal government [member] | |
RestrictCashLineItems [Line Items] | |
Percentage of deduction of municipal revenue | 7.50% |
10 Trade receivables (Details)
10 Trade receivables (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of trade receivables [Line Items] | |||||
Subtotal | R$ 3608605 | R$ 3395042 | |||
Allowance for doubtful accounts | (1,157,619) | (1,042,015) | R$ 1099442 | R$ 1067973 | |
Total trade receivables | 2,450,986 | 2,353,027 | |||
Current | 2,204,029 | 2,137,752 | |||
Noncurrent | 246,957 | 215,275 | |||
Total | 2,450,986 | 2,353,027 | |||
Unbilled supply [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | 713,310 | 745,884 | |||
Wholesale customers - Municipal governments [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | [1] | 22,390 | 13,149 | ||
Wholesale customers - Municipal governments [member] | Mogi das Cruzes [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | [1] | 3,582 | 3,278 | ||
Wholesale customers - Municipal governments [member] | Sao Caetano do Sul [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | [1] | 18,808 | 9,871 | ||
Private sector [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | 2,062,105 | 1,883,491 | |||
Private sector [member] | General and special customers [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | [2],[3] | 1,663,738 | 1,505,150 | ||
Private sector [member] | Agreements [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | [4] | 398,367 | 378,341 | ||
Government entities [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | 810,800 | 752,518 | |||
Government entities [member] | Agreements [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | [4] | 333,740 | 277,047 | ||
Government entities [member] | Municipal [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | 473,201 | 472,666 | |||
Government entities [member] | Federal [member] | |||||
Summary of trade receivables [Line Items] | |||||
Subtotal | R$ 3859 | R$ 2805 | |||
[1] | Wholesale basis customers - municipal governments - This balance refers to invoices issued as a result of services provided to municipalities, which are responsible for distributing to, billing and charging final customers. | ||||
[2] | General customers - residential and small and mid-sized companies | ||||
[3] | Special customers - large consumers, commercial, industries, condominiums and special billing consumers (fixed demand agreements, industrial waste, wells, etc.). | ||||
[4] | Agreements - installment payments of past-due receivables, plus monetary adjustment and interest, according to the agreements. |
10 Trade receivables (Details 1
10 Trade receivables (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of trade receivables [Line Items] | ||
Current | R$ 1793104 | R$ 1762606 |
Past-due | 1,815,501 | 1,632,436 |
Total | 3,608,605 | 3,395,042 |
Up to 30 days [member] | ||
Summary of trade receivables [Line Items] | ||
Past-due | 340,760 | 330,488 |
From 31 to 60 days [member] | ||
Summary of trade receivables [Line Items] | ||
Past-due | 177,103 | 164,913 |
From 61 to 90 days [member] | ||
Summary of trade receivables [Line Items] | ||
Past-due | 120,488 | 86,765 |
From 91 to 120 days [member] | ||
Summary of trade receivables [Line Items] | ||
Past-due | 88,323 | 58,971 |
From 121 to 180 days [member] | ||
Summary of trade receivables [Line Items] | ||
Past-due | 113,060 | 81,003 |
From 181 to 360 days [member] | ||
Summary of trade receivables [Line Items] | ||
Past-due | 82,365 | 33,206 |
Over 360 days [member] | ||
Summary of trade receivables [Line Items] | ||
Past-due | R$ 893402 | R$ 877090 |
10 Trade receivables (Details 2
10 Trade receivables (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade Receivables | |||
Balance at beginning of the year | R$ 1042015 | R$ 1099442 | R$ 1067973 |
Additions | 176,776 | 54,064 | 61,315 |
Recoveries | (61,172) | (111,491) | (29,846) |
Balance at the end of the year | R$ 1157619 | R$ 1042015 | R$ 1099442 |
10 Trade receivables (Details 3
10 Trade receivables (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade Receivables | |||
Write-offs | R$ 329512 | R$ 179929 | R$ 184555 |
(Losses)/reversal with state entities - related parties | 290 | (5,597) | 1,294 |
(Losses) with private sector / government entities | (176,776) | (54,064) | (61,315) |
(Losses)/reversal with wholesale customers | 0 | 0 | (29,458) |
Recoveries | 61,172 | 111,491 | 107,307 |
Amount recorded expense | R$ 444826 | R$ 128099 | R$ 166727 |
10 Trade receivables (Details N
10 Trade receivables (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Trade Receivables | ||
Payment to settle administrative costs and terminate the services provided by SAMA | R$ 2500 | |
Non-recurring fair value for the transaction with Mauá | 280,774 | |
Expenses with estimated losses increased | 444,826 | R$ 128099 |
Receivables for the provision of water supply | 725,533 | |
Compensation of assets due to resumption of water supply | R$ 85918 |
11 Related-Party Balances and_3
11 Related-Party Balances and Transactions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2015 |
Disclosure of transactions between related parties [line items] | |||
Accounts receivable, current | R$ 168054 | R$ 192906 | R$ 696283 |
Accounts receivable, noncurrent | 638,591 | 657,990 | |
Total receivables from shareholders | 806,645 | 850,896 | |
Interest on capital payable to related parties | 116,180 | 401,963 | |
Reimbursement for benefits GESP 2015 [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable, current | 75,377 | 68,888 | |
Accounts receivable, noncurrent | 634,288 | 647,107 | |
Sanitation services [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable, current | 109,078 | 131,851 | |
Total receivables from shareholders | 74,254 | 103,317 | |
Allowance for losses [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable, current | (39,127) | (39,417) | |
Reimbursement for retirement and pension benefits paid [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable, current | 22,726 | 31,584 | |
Total receivables from shareholders | 732,391 | 747,579 | |
Agreement for the installment payment of sanitation services [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable, noncurrent | R$ 4303 | R$ 10883 |
11 Related-Party Balances and_4
11 Related-Party Balances and Transactions (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | |||
Revenues | R$ 17797541 | R$ 17983654 | R$ 16085094 |
Sanitation services [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenues | 501,756 | 556,574 | 501,146 |
Payments received from related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Revenues | (520,881) | (546,365) | (509,672) |
Receipt of reimbursement referring to Law 4,819/58 [member] | |||
Disclosure of transactions between related parties [line items] | |||
Receipt of GESP reimbursement | R$ 173874 | R$ 152112 | R$ 173516 |
11 Related-Party Balances and_5
11 Related-Party Balances and Transactions (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 05, 2017 | Mar. 31, 2015 | Mar. 18, 2015 | Mar. 17, 2015 | Nov. 17, 2008 | |
Disclosure of transactions between related parties [line items] | ||||||||
Accounts receivable, current | R$ 168054 | R$ 192906 | R$ 696283 | |||||
Undisputed reimbursement | R$ 915251 | |||||||
Reimbursement receivable related to the reservoirs | 696,283 | |||||||
Remaining debit balance | R$ 218967 | |||||||
Agreement transaction amount | R$ 1012310 | |||||||
Inflation adjustment amount | R$ 316027 | |||||||
Preferred shares issued for installments, value | R$ 87174 | |||||||
Monthly installment payable | R$ 609109 | |||||||
Receivables in current assets | 75,377 | 68,888 | ||||||
Receivables in non-current assets | 634,288 | 647,107 | ||||||
Disputed amounts receivable | 1,281,409 | 1,195,217 | ||||||
Actuarial liability amount | 2,549,541 | 3,046,255 | ||||||
Other liabilities, current | 17,255 | 16,653 | ||||||
Other liabilities, non-current | 73,660 | 87,231 | ||||||
Balance related to the first amendment with EMAE | 17,813 | |||||||
Expenses related to personnel assigned by SABESP to other state government entities | 2,108 | 4,881 | R$ 8903 | |||||
Expenses related to personnel by other entities to SABESP | 13 | 139 | R$ 116 | |||||
Non-operating assets | 3,613 | 3,613 | ||||||
Net actuarial liability | 319,053 | 314,677 | ||||||
Compensation to Officers | 6,426 | 5,344 | ||||||
Bonus program | 1,439 | 1,348 | ||||||
Total loan agreement related party | 9,420 | 23,866 | ||||||
Related party - non curent | 34,992 | |||||||
Total amortization amount | 3,000 | |||||||
Amortization of principal amount | 1,231 | |||||||
Amortization of interest | R$ 1769 | |||||||
Connect to the Network Program expenditure concentration | 20.00% | |||||||
Total program amount | R$ 130436 | 117,272 | ||||||
Total program amount recorded under intangible assets | 78,262 | 65,099 | ||||||
Total reimbursed program amount | R$ 52174 | R$ 52174 | ||||||
Number of shares issued | 683,509,869 | 683,509,869 | 683,509,869 | |||||
State Government [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Connect to the Network Program expenditure concentration | 80.00% | |||||||
Preference shares [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Number of shares issued | 2,221,000 | |||||||
Value of shares issued | R$ 87174 | |||||||
Reimbursement for benefits GESP 2015 [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Accounts receivable, current | 75,377 | R$ 68888 | ||||||
Allowance for losses [member] | ||||||||
Disclosure of transactions between related parties [line items] | ||||||||
Accounts receivable, current | R$ 39127 | R$ 39417 | R$ 33820 |
12 Investments (Details)
12 Investments (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Summary of investments [Line Items] | |||||
Equity | R$ 22793704 | R$ 21635783 | R$ 19551688 | R$ 17513009 | |
Dividends distributed | 231,611 | 800,352 | |||
Other comprehensive income | 511,169 | (363,076) | (10,994) | ||
Profit for the year | 973,318 | 3,367,517 | 2,835,068 | ||
Investments | 63,417 | 53,187 | |||
Other comprehensive income | 17 | (17) | 0 | ||
Other investments [member] | |||||
Summary of investments [Line Items] | |||||
Investments | 6,099 | 365 | |||
Overall total | 63,417 | 53,187 | |||
Saneaqua mairinque [member] | |||||
Summary of investments [Line Items] | |||||
Equity | [1] | 4,013 | 4,783 | 5,720 | |
Dividends distributed | 0 | ||||
Other comprehensive income | 17 | ||||
Profit for the year | [1] | (770) | (871) | (790) | |
Profit for the year - change in the equity | [2] | 0 | |||
Investments | 0 | 1,434 | |||
Dividends distributed - change in the equity | 0 | ||||
Reclassification | [3] | (1,203) | |||
Equity in the earnings of subsidiaries | (248) | R$ 262 | R$ 237 | ||
Equity in the earnings of subsidiaries - change in the equity | [2] | R$ 0 | |||
Interest percentage | 4.60% | 30.00% | 30.00% | ||
Aguas de castilho [member] | |||||
Summary of investments [Line Items] | |||||
Equity | R$ 8533 | R$ 7242 | R$ 6084 | ||
Dividends distributed | (322) | ||||
Profit for the year | 1,600 | 1,767 | 1,001 | ||
Profit for the year - change in the equity | 13 | ||||
Investments | 2,560 | 2,172 | |||
Dividends distributed - change in the equity | (97) | ||||
Other comprehensive income | 0 | ||||
Reclassification | 0 | ||||
Equity in the earnings of subsidiaries | R$ 481 | 529 | R$ 300 | ||
Equity in the earnings of subsidiaries - change in the equity | [2] | R$ 4 | |||
Interest percentage | 30.00% | 30.00% | 30.00% | ||
Sesamm [member] | |||||
Summary of investments [Line Items] | |||||
Equity | R$ 51514 | R$ 45923 | R$ 43547 | ||
Dividends distributed | (1,741) | ||||
Profit for the year | 7,332 | 4,418 | 5,621 | ||
Profit for the year - change in the equity | [2] | 0 | |||
Investments | 18,546 | 16,533 | |||
Dividends distributed - change in the equity | (627) | ||||
Other comprehensive income | 0 | ||||
Reclassification | 0 | ||||
Equity in the earnings of subsidiaries | 2,640 | R$ 1591 | R$ 2023 | ||
Equity in the earnings of subsidiaries - change in the equity | [2] | R$ 0 | |||
Interest percentage | 36.00% | 36.00% | 36.00% | ||
Aguas de andradina [member] | |||||
Summary of investments [Line Items] | |||||
Equity | R$ 29576 | R$ 30065 | R$ 24832 | ||
Dividends distributed | (1,267) | ||||
Other comprehensive income | 0 | ||||
Profit for the year | 3,403 | 7,271 | 2,407 | ||
Profit for the year - change in the equity | [2] | (2,625) | |||
Investments | 8,873 | 9,020 | |||
Dividends distributed - change in the equity | (380) | ||||
Reclassification | 0 | ||||
Equity in the earnings of subsidiaries | 1,020 | R$ 2181 | R$ 722 | ||
Equity in the earnings of subsidiaries - change in the equity | [2] | R$ 787 | |||
Interest percentage | 30.00% | 30.00% | 30.00% | ||
Attend ambiental [member] | |||||
Summary of investments [Line Items] | |||||
Equity | R$ 11409 | R$ 7486 | R$ 1426 | ||
Dividends distributed | 0 | ||||
Profit for the year | 3,958 | (18,217) | (3,743) | ||
Profit for the year - change in the equity | (35) | ||||
Investments | 5,134 | 3,369 | |||
Dividends distributed - change in the equity | 0 | ||||
Reclassification | 0 | ||||
Equity in the earnings of subsidiaries | 1,781 | R$ 8198 | R$ 1684 | ||
Equity in the earnings of subsidiaries - change in the equity | [2] | R$ 16 | |||
Interest percentage | 45.00% | 45.00% | 45.00% | ||
Aquapolo ambiental [member] | |||||
Summary of investments [Line Items] | |||||
Equity | R$ 41903 | R$ 37772 | R$ 30170 | ||
Dividends distributed | (15,000) | ||||
Other comprehensive income | 0 | ||||
Profit for the year | 19,131 | 16,283 | 11,413 | ||
Profit for the year - change in the equity | [2] | 0 | |||
Investments | 20,532 | 18,508 | |||
Dividends distributed - change in the equity | (7,350) | ||||
Reclassification | 0 | ||||
Equity in the earnings of subsidiaries | R$ 9374 | R$ 7979 | R$ 5592 | ||
Interest percentage | 49.00% | 49.00% | 49.00% | ||
Paulista geradora de energia [member] | |||||
Summary of investments [Line Items] | |||||
Equity | R$ 6692 | R$ 7144 | R$ 7625 | ||
Dividends distributed | 0 | ||||
Profit for the year | (452) | (481) | (822) | ||
Profit for the year - change in the equity | [2] | 0 | |||
Investments | 1,673 | 1,786 | |||
Reclassification | 0 | ||||
Equity in the earnings of subsidiaries | R$ 113 | R$ 119 | R$ 206 | ||
Interest percentage | 25.00% | 25.00% | 25.00% | ||
Paulista geradora de energia [member] | |||||
Summary of investments [Line Items] | |||||
Interest percentage | 25.00% | 25.00% | 25.00% | ||
Total | |||||
Summary of investments [Line Items] | |||||
Other comprehensive income | R$ 17 | ||||
Investments | 57,318 | R$ 52822 | |||
Dividends distributed - change in the equity | (8,454) | ||||
Reclassification | (1,203) | ||||
Equity in the earnings of subsidiaries | 14,935 | R$ 3701 | R$ 6510 | ||
Equity in the earnings of subsidiaries - change in the equity | [2] | R$ 799 | |||
[1] | The amounts presented for 2020 refer to July 31, 2020. | ||||
[2] | Refer to changes in the equity of investees, as their financial statements for the year ended December 31, 2019 were issued, including some adjustments, after the Companys financial statements. | ||||
[3] | On August 20, 2020, the investee Saneaqua Mairinque held an Extraordinary Shareholders' Meeting that approved a capital increase in the amount of R$ 21,944, through the issue of 17,178,988 shares. SABESP waived its preemptive right in the participation of such capital increase, and the shares then issued because of the capital increase were entirely subscribed by the shareholder BRK Ambiental, resulting in the dilution of SABESP's interest in the investee. Accordingly, SABESP discontinued the equity accounting method and recorded this financial asset under the fair value on the transaction date, in the amount of R$ 5,734 recorded as "Other investments". The amounts corresponding to the equity result were recorded until July 2020. |
12 Investments (Details Narrati
12 Investments (Details Narrative) - BRL (R$) R$ in Thousands | Aug. 20, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of investments [Line Items] | ||||
Capital stock | R$ 15000000 | R$ 15000000 | ||
Capital stock, shares | 683,509,869 | |||
Number of shares issued | 683,509,869 | 683,509,869 | 683,509,869 | |
Aguas de andradina [member] | ||||
Disclosure of investments [Line Items] | ||||
Capital stock | R$ 17936 | |||
Capital stock, shares | 17,936,174 | |||
Equity interest | 30.00% | 30.00% | 30.00% | |
Saneaqua mairinque [member] | ||||
Disclosure of investments [Line Items] | ||||
Capital stock | R$ 26127 | |||
Capital stock, shares | 20,320,227 | |||
Equity interest | 4.60% | 30.00% | 30.00% | |
Other investments | R$ 5734 | |||
Capital increase | R$ 21944 | |||
Number of shares issued | 17,178,988 | |||
Aquapolo ambiental [member] | ||||
Disclosure of investments [Line Items] | ||||
Capital stock | R$ 36412 | |||
Capital stock, shares | 42,419,045 | |||
Equity interest | 49.00% | 49.00% | 49.00% | |
Sesamm [member] | ||||
Disclosure of investments [Line Items] | ||||
Capital stock | R$ 19532 | |||
Capital stock, shares | 19,532,409 | |||
Equity interest | 36.00% | 36.00% | 36.00% | |
Attend ambiental [member] | ||||
Disclosure of investments [Line Items] | ||||
Capital stock | R$ 37677 | |||
Capital stock, shares | 37,677,245 | |||
Equity interest | 45.00% | 45.00% | 45.00% | |
Aguas de castilho [member] | ||||
Disclosure of investments [Line Items] | ||||
Capital stock | R$ 2785 | |||
Capital stock, shares | 2,785,225 | |||
Equity interest | 30.00% | 30.00% | 30.00% | |
Paulista geradora de energia [member] | ||||
Disclosure of investments [Line Items] | ||||
Capital stock | R$ 8679 | |||
Capital stock, shares | 8,679,040 | |||
Equity interest | 25.00% | 25.00% | 25.00% | |
Igua saneamento s.a [member] | ||||
Disclosure of investments [Line Items] | ||||
Percentage of equity interest held | 70.00% | |||
Servtec investimentos e participacoes ltda [member] | ||||
Disclosure of investments [Line Items] | ||||
Percentage of equity interest held | 37.50% | |||
Tecniplan engenharia e comercio ltda [member] | ||||
Disclosure of investments [Line Items] | ||||
Percentage of equity interest held | 37.50% |
13 Investment properties (Detai
13 Investment properties (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investment property [abstract] | |||
Investment properties, beginning | R$ 47562 | R$ 47620 | R$ 57652 |
Write-offs and disposals | 0 | 0 | (9,995) |
Transfers | (1,240) | (9) | 13 |
Depreciation | (48) | (49) | (50) |
Investment properties, ending | R$ 46274 | R$ 47562 | R$ 47620 |
13 Investment properties (Det_2
13 Investment properties (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investment property [abstract] | ||
Investment properties, market value | R$ 383000 | R$ 386000 |
14 Contract assets (Details)
14 Contract assets (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Contract assets [abstract] | ||||
Contract assets, beginning | R$ 7617714 | R$ 7407948 | R$ 10387715 | |
Additions | 3,984,158 | [1] | 3,532,283 | 3,188,943 |
Write-offs | 0 | (4,910) | 0 | |
Transfers | 55,706 | 10,710 | 0 | |
Transfers of works to intangible assets | (3,688,414) | [2] | (3,328,317) | (6,168,710) |
Contract assets, ending | R$ 7969164 | [3] | R$ 7617714 | R$ 7407948 |
[1] | The largest additions of the period are located in the municipalities of Sao Paulo, Praia Grande and Sao Bernardo do Campo, in the amounts of R$ 1,676 million, R$ 284 million and R$ 228 million, respectively. | |||
[2] | The largest transfers of the period are located in the municipalities of Sao Paulo, Guarulhos, Cotia and Praia Grande, in the amounts of R$ 1,414 million, R$ 173 million, R$ 117 million and R$ 115 million, respectively. | |||
[3] | The largest works are located in the municipalities of Sao Paulo, Praia Grande and Sao Bernardo do Campo, in the amounts of R$ 3,727 million, R$ 527 million and R$ 496 million, respectively. |
14 Contract assets (Details Nar
14 Contract assets (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||||
Contract Assets | R$ 7969164 | [1] | R$ 7617714 | R$ 7407948 | R$ 10387715 |
Transfers of works to intangible assets | (3,688,414) | [2] | (3,328,317) | (6,168,710) | |
Additions | 3,984,158 | [3] | 3,532,283 | R$ 3188943 | |
Right of use of leased assets | 589,130 | 640,415 | |||
Leases [IAS17] [member] | |||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||||
Right of use of leased assets | 276,893 | R$ 276893 | |||
Sao Bernardo do Campo [member] | |||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||||
Contract Assets | 496,000 | ||||
Additions | 228,000 | ||||
Sao paulo [member] | |||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||||
Contract Assets | 3,727,000 | ||||
Transfers of works to intangible assets | 1,414,000 | ||||
Additions | 1,676,000 | ||||
Praia Grande [member] | |||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||||
Contract Assets | 527,000 | ||||
Transfers of works to intangible assets | 115,000 | ||||
Additions | 284,000 | ||||
Guarulhos [member] | |||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||||
Transfers of works to intangible assets | 173,000 | ||||
Cotia [member] | |||||
Disclosure of assets recognised from costs to obtain or fulfil contracts with customers [line items] | |||||
Transfers of works to intangible assets | R$ 117000 | ||||
[1] | The largest works are located in the municipalities of Sao Paulo, Praia Grande and Sao Bernardo do Campo, in the amounts of R$ 3,727 million, R$ 527 million and R$ 496 million, respectively. | ||||
[2] | The largest transfers of the period are located in the municipalities of Sao Paulo, Guarulhos, Cotia and Praia Grande, in the amounts of R$ 1,414 million, R$ 173 million, R$ 117 million and R$ 115 million, respectively. | ||||
[3] | The largest additions of the period are located in the municipalities of Sao Paulo, Praia Grande and Sao Bernardo do Campo, in the amounts of R$ 1,676 million, R$ 284 million and R$ 228 million, respectively. |
15 Intangible assets (Details)
15 Intangible assets (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of intangible assets [Line Items] | |||||
Cost | R$ 48687584 | R$ 44626255 | |||
Accumulated amortization | (14,282,009) | (12,300,808) | |||
Net | 34,405,575 | 32,325,447 | R$ 29012460 | R$ 33466132 | |
Program contracts - commitments [member] | |||||
Summary of intangible assets [Line Items] | |||||
Cost | 1,709,757 | 1,651,434 | |||
Accumulated amortization | (338,834) | (286,559) | |||
Net | 1,370,923 | 1,364,875 | |||
Concession agreements - equity value [member] | |||||
Summary of intangible assets [Line Items] | |||||
Cost | 671,904 | 2,066,459 | |||
Accumulated amortization | (188,129) | (571,606) | |||
Net | 483,775 | 1,494,853 | |||
Concession agreements - economic value [member] | |||||
Summary of intangible assets [Line Items] | |||||
Cost | 1,446,261 | 1,334,531 | |||
Accumulated amortization | (711,596) | (621,679) | |||
Net | 734,665 | 712,852 | [1] | 1,232,009 | 1,433,937 |
Program contracts [member] | |||||
Summary of intangible assets [Line Items] | |||||
Cost | 23,160,119 | 19,413,768 | |||
Accumulated amortization | (6,799,812) | (5,594,068) | |||
Net | 16,360,307 | 13,819,700 | |||
Services contracts - Sao Paulo [member] | |||||
Summary of intangible assets [Line Items] | |||||
Cost | 20,579,676 | 19,217,091 | |||
Accumulated amortization | (5,707,072) | (4,826,328) | |||
Net | 14,872,604 | 14,390,763 | [1] | R$ 13391452 | R$ 15917015 |
Software license of use [member] | |||||
Summary of intangible assets [Line Items] | |||||
Cost | 978,085 | 829,739 | |||
Accumulated amortization | (437,460) | (358,033) | |||
Net | 540,625 | 471,706 | |||
Right of use [member] | |||||
Summary of intangible assets [Line Items] | |||||
Cost | 141,782 | 113,233 | |||
Accumulated amortization | (99,106) | (42,535) | |||
Net | R$ 42676 | R$ 70698 | |||
[1] | As of December 31, 2019, intangible assets includes leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 292,824 - (R$ 315,717 as of December 31, 2018 -R$ R$ 98,077 recognized as concession agreements -equity value and R$ 217,640 recognized as program contracts). |
15 Intangible assets (Details 1
15 Intangible assets (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Summary of intangible assets [Line Items] | ||||||
Intangible assets, beginning | R$ 32325447 | R$ 29012460 | R$ 33466132 | |||
First-time adoption of IFRS 16 | 64,955 | |||||
Transfers to contract assets | [1] | (10,387,715) | ||||
Additions | 411,285 | 1,723,952 | 1,144,728 | |||
Contract renewal | 0 | 0 | 0 | |||
Transfers of works | [2] | 6,168,710 | ||||
Transfer to indemnities receivable | (4,345) | |||||
Transfer of contract assets | 3,688,414 | 3,328,317 | ||||
Transfers | 2,991 | (13,531) | (1,471) | |||
Write-offs and disposals | (16,313) | (39,931) | (24,866) | |||
Amortization | (2,006,249) | (1,746,430) | (1,353,058) | |||
Intangible assets, ending | 34,405,575 | 32,325,447 | 29,012,460 | |||
Concession agreements - equity value [member] | ||||||
Summary of intangible assets [Line Items] | ||||||
Intangible assets, beginning | 1,494,853 | [3] | 4,073,344 | 7,141,614 | ||
First-time adoption of IFRS 16 | 0 | |||||
Transfers to contract assets | [1] | (1,427,046) | ||||
Additions | 1 | [3] | 2 | 93 | ||
Contract renewal | (1,031,830) | [3] | (2,690,660) | (1,935,780) | ||
Transfers of works | [2] | 499,002 | ||||
Transfer to indemnities receivable | (4,345) | |||||
Transfer of contract assets | 47,154 | [3] | 131,809 | |||
Transfers | 1,440 | [3] | 76,804 | (5,268) | ||
Write-offs and disposals | (858) | [3] | (8,311) | (1,406) | ||
Amortization | (26,985) | [3] | (83,790) | (197,865) | ||
Intangible assets, ending | 483,775 | [3] | 1,494,853 | [3] | 4,073,344 | |
Concession agreements - economic value [member] | ||||||
Summary of intangible assets [Line Items] | ||||||
Intangible assets, beginning | 712,852 | [4] | 1,232,009 | 1,433,937 | ||
First-time adoption of IFRS 16 | 0 | |||||
Transfers to contract assets | [1] | (233,361) | ||||
Additions | 0 | 2,034 | 373 | |||
Contract renewal | 0 | (532,173) | 0 | |||
Transfers of works | [2] | 114,442 | ||||
Transfer to indemnities receivable | 0 | |||||
Transfer of contract assets | 113,320 | 89,041 | ||||
Transfers | (1,403) | 1,956 | 88 | |||
Write-offs and disposals | (42) | (569) | (1,031) | |||
Amortization | (90,062) | (79,446) | (82,439) | |||
Intangible assets, ending | 734,665 | 712,852 | [4] | 1,232,009 | ||
Program contracts [member] | ||||||
Summary of intangible assets [Line Items] | ||||||
Intangible assets, beginning | 13,819,700 | [3] | 8,777,929 | 7,595,066 | ||
First-time adoption of IFRS 16 | 0 | |||||
Transfers to contract assets | [1] | (2,019,461) | ||||
Additions | 303,472 | [3] | 1,338,443 | 928,818 | ||
Contract renewal | 1,031,830 | [3] | 3,223,773 | 1,935,780 | ||
Transfers of works | [2] | 681,742 | ||||
Transfer to indemnities receivable | 0 | |||||
Transfer of contract assets | 2,075,268 | [3] | 970,534 | |||
Transfers | (51,570) | [3] | 137,283 | 3,011 | ||
Write-offs and disposals | (5,423) | [3] | (10,312) | (7,616) | ||
Amortization | (812,970) | [3] | (617,950) | (339,411) | ||
Intangible assets, ending | 16,360,307 | [3] | 13,819,700 | [3] | 8,777,929 | |
Program contracts - commitments [member] | ||||||
Summary of intangible assets [Line Items] | ||||||
Intangible assets, beginning | 1,364,875 | 1,079,551 | 910,375 | |||
First-time adoption of IFRS 16 | 0 | |||||
Transfers to contract assets | [1] | 0 | ||||
Additions | 58,323 | 331,328 | 206,946 | |||
Contract renewal | 0 | 0 | 0 | |||
Transfers of works | [2] | 0 | ||||
Transfer to indemnities receivable | 0 | |||||
Transfer of contract assets | 0 | 0 | ||||
Transfers | 0 | 0 | 0 | |||
Write-offs and disposals | 0 | 0 | 0 | |||
Amortization | (52,275) | (46,004) | (37,770) | |||
Intangible assets, ending | 1,370,923 | 1,364,875 | 1,079,551 | |||
Services contracts - Sao Paulo [member] | ||||||
Summary of intangible assets [Line Items] | ||||||
Intangible assets, beginning | 14,390,763 | [4] | 13,391,452 | 15,917,015 | ||
First-time adoption of IFRS 16 | 0 | |||||
Transfers to contract assets | [1] | (6,707,847) | ||||
Additions | 20,940 | 3,867 | 3,724 | |||
Contract renewal | 0 | (940) | 0 | |||
Transfers of works | [2] | 4,818,734 | ||||
Transfer to indemnities receivable | 0 | |||||
Transfer of contract assets | 1,382,656 | 2,054,940 | ||||
Transfers | (23,645) | (228,583) | 12 | |||
Write-offs and disposals | (9,990) | (20,739) | (14,813) | |||
Amortization | (888,120) | (809,234) | (625,373) | |||
Intangible assets, ending | 14,872,604 | 14,390,763 | [4] | 13,391,452 | ||
Software license [member] | ||||||
Summary of intangible assets [Line Items] | ||||||
Intangible assets, beginning | 471,706 | 458,175 | 468,125 | |||
First-time adoption of IFRS 16 | 0 | |||||
Transfers to contract assets | [1] | 0 | ||||
Additions | 0 | 0 | 4,774 | |||
Contract renewal | 0 | 0 | 0 | |||
Transfers of works | [2] | 54,790 | ||||
Transfer to indemnities receivable | 0 | |||||
Transfer of contract assets | 70,016 | 81,993 | ||||
Transfers | 78,169 | (991) | 686 | |||
Write-offs and disposals | 0 | 0 | ||||
Amortization | (79,266) | (67,471) | (70,200) | |||
Intangible assets, ending | 540,625 | 471,706 | 458,175 | |||
Right of use - other assets [member] | ||||||
Summary of intangible assets [Line Items] | ||||||
Intangible assets, beginning | 70,698 | 0 | ||||
First-time adoption of IFRS 16 | 28,549 | 64,955 | ||||
Additions | 0 | 48,278 | ||||
Contract renewal | 0 | 0 | ||||
Transfer to indemnities receivable | 0 | |||||
Transfer of contract assets | 0 | 0 | ||||
Transfers | 0 | 0 | ||||
Write-offs and disposals | (56,571) | 0 | ||||
Amortization | R$ 42676 | (42,535) | ||||
Intangible assets, ending | R$ 70698 | R$ 0 | ||||
[1] | Work in progress transferred to contract assets due to adoption of IFRS 15, as of January 1, 2018, as described in Note 4.1. | |||||
[2] | Work in progress transferred from contract assets to intangible assets. | |||||
[3] | As of December 31, 2020, intangible assets includes leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 269,561 - R$ 76,454 recognized as concession agreements - equity value and R$ 193,107 recognized as program contracts (R$ 292,824 as of December 31, 2019 - R$ 87,266 recognized as concession agreements - equity value and R$ 205,558 recognized as program contracts). | |||||
[4] | As of December 31, 2019, intangible assets includes leases recognized before December 31, 2018 in accordance with IAS 17 amounting to R$ 292,824 - (R$ 315,717 as of December 31, 2018 -R$ R$ 98,077 recognized as concession agreements -equity value and R$ 217,640 recognized as program contracts). |
15 Intangible assets (Details 2
15 Intangible assets (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of intangible assets [Line Items] | ||
Current liabilities | R$ 130207 | R$ 110291 |
Noncurrent liabilities | 3,045,066 | 3,183,689 |
Total liabilities | 3,175,273 | 3,293,980 |
Alto Tiete [member] | ||
Summary of intangible assets [Line Items] | ||
Current liabilities | 59,429 | 44,003 |
Noncurrent liabilities | 149,726 | 208,217 |
Total liabilities | 209,155 | 252,220 |
Sao Lourenco [member] | ||
Summary of intangible assets [Line Items] | ||
Current liabilities | 70,778 | 66,288 |
Noncurrent liabilities | 2,895,340 | 2,975,472 |
Total liabilities | R$ 2966118 | R$ 3041760 |
15 Intangible assets (Details 3
15 Intangible assets (Details 3) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of intangible assets [Line Items] | ||
Right of use | R$ 589130 | R$ 640415 |
Leases related to contract assets [member] | ||
Summary of intangible assets [Line Items] | ||
Right of use | 276,893 | 276,893 |
Leases related to concession agreements and program contracts [member] | ||
Summary of intangible assets [Line Items] | ||
Right of use | 269,561 | 292,824 |
Leases related to concession agreements and program contracts [member] | Cost [member] | ||
Summary of intangible assets [Line Items] | ||
Right of use | 405,426 | 405,426 |
Leases related to concession agreements and program contracts [member] | Accumulated amortization [member] | ||
Summary of intangible assets [Line Items] | ||
Right of use | (135,865) | (112,602) |
Other assets [member] | ||
Summary of intangible assets [Line Items] | ||
Right of use | 42,676 | 70,698 |
Vehicles [member] | ||
Summary of intangible assets [Line Items] | ||
Right of use | 115,208 | 91,709 |
Properties [member] | ||
Summary of intangible assets [Line Items] | ||
Right of use | 15,508 | 13,309 |
Equipment [member] | ||
Summary of intangible assets [Line Items] | ||
Right of use | 4,541 | 3,801 |
Other [member] | ||
Summary of intangible assets [Line Items] | ||
Right of use | 6,525 | 4,414 |
Accumulated amortization [member] | ||
Summary of intangible assets [Line Items] | ||
Right of use | R$ 99106 | R$ 42535 |
15 Intangible assets (Details 4
15 Intangible assets (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible assets other than goodwill [abstract] | ||
Right-of-use amortization | R$ 79834 | R$ 65413 |
Financial result - interest expenses | (62,956) | (54,791) |
Short-term and low-value lease expenses | (13,845) | (51,855) |
Decrease of the income of the year | R$ 156635 | R$ 172059 |
15 Intangible assets (Details N
15 Intangible assets (Details Narrative) R$ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020BRL (R$)Municipalities | Dec. 31, 2019BRL (R$)Municipalities | Dec. 31, 2018BRL (R$) | Dec. 31, 2017BRL (R$) | ||
Summary of intangible assets [Line Items] | |||||
Intangible assets | R$ 34405575 | R$ 32325447 | R$ 29012460 | R$ 33466132 | |
Contract asset | 7,969,164 | [1] | 7,617,714 | 7,407,948 | R$ 10387715 |
Program contracts commitments, current | 162,541 | 273,932 | |||
Program contracts commitments, noncurrent | 68,939 | 103,321 | |||
Capitalized interest and inflation adjustment | R$ 238330 | R$ 233251 | 488,502 | ||
Percentage of revenue | 44.58% | 44.48% | |||
Construction margin | R$ 86477 | R$ 65172 | (63,013) | ||
Discount rate on intangible asset | 8.20% | 8.20% | |||
Expropriations | R$ 33136 | R$ 34681 | R$ 106429 | ||
Intangible assets related to PPP ALTO TIETE | 287,645 | 348,586 | |||
Intangible assets related to PPP Sao Lourenco | R$ 3065445 | R$ 3235008 | |||
Intangible assets, discount rate for adjustment - PPP | 7.80% | ||||
Amortization average rate | 4.70% | 4.20% | |||
Right of use operating expense | R$ 3157 | ||||
Right of use selling expense | 8,736 | ||||
Right of use administrative expense | 1,950 | ||||
Performance Agreements [member] | |||||
Summary of intangible assets [Line Items] | |||||
Intangible assets | 265,940 | R$ 127410 | |||
Contract asset | R$ 306738 | R$ 51650 | |||
Sao paulo [member] | |||||
Summary of intangible assets [Line Items] | |||||
Number of municipalities | Municipalities | 375 | 372 | |||
Percentage of revenue | 7.50% | ||||
Sao paulo [member] | Services agreement [member] | |||||
Summary of intangible assets [Line Items] | |||||
Percentage of revenue | 13.00% | ||||
Alto Tiete Production System [member] | |||||
Summary of intangible assets [Line Items] | |||||
Monthly assigned funds from tariffs | R$ 12064 | ||||
Sao Lourenco Production System [member] | |||||
Summary of intangible assets [Line Items] | |||||
Monthly assigned funds from tariffs | R$ 34380 | ||||
[1] | The largest works are located in the municipalities of Sao Paulo, Praia Grande and Sao Bernardo do Campo, in the amounts of R$ 3,727 million, R$ 527 million and R$ 496 million, respectively. |
16 Property, plant and equipm_3
16 Property, plant and equipment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Cost | R$ 602345 | R$ 625825 | ||
Accumulated amortization | (334,094) | (311,432) | ||
Net | R$ 268251 | R$ 314393 | R$ 267612 | R$ 255050 |
Depreciation average rate | 11.20% | 12.50% | ||
Buildings [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Cost | R$ 86860 | R$ 82143 | ||
Accumulated amortization | (41,513) | (40,438) | ||
Net | R$ 45347 | R$ 41705 | 40,125 | 42,360 |
Depreciation average rate | 2.10% | 2.10% | ||
Land [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Cost | R$ 94213 | R$ 92962 | ||
Net | 94,213 | 92,962 | 92,979 | 92,507 |
Equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Cost | 372,103 | 402,850 | ||
Accumulated amortization | (271,087) | (250,577) | ||
Net | R$ 101016 | R$ 152273 | 116,086 | 103,803 |
Depreciation average rate | 14.80% | 16.30% | ||
Transportation equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Cost | R$ 10319 | R$ 8946 | ||
Accumulated amortization | (7,350) | (6,962) | ||
Net | R$ 2969 | R$ 1984 | 3,473 | 3,680 |
Depreciation average rate | 9.90% | 9.90% | ||
Furniture and fixtures [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Cost | R$ 31232 | R$ 31365 | ||
Accumulated amortization | (13,813) | (13,146) | ||
Net | R$ 17419 | R$ 18219 | 13,578 | 11,816 |
Depreciation average rate | 6.70% | 6.70% | ||
Other [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Cost | R$ 7618 | R$ 7559 | ||
Accumulated amortization | (331) | (309) | ||
Net | R$ 7287 | R$ 7250 | R$ 1371 | R$ 884 |
Depreciation average rate | 4.90% | 5.00% |
16 Property, plant and equipm_4
16 Property, plant and equipment (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | R$ 314393 | R$ 267612 | R$ 255050 |
Additions | 42,407 | 78,159 | 50,645 |
Transfers | (57,457) | 2,830 | 1,458 |
Write-offs and disposals | (277) | (593) | (108) |
Depreciation | (30,815) | (33,615) | (39,433) |
Property, plant, and equipment, ending | 268,251 | 314,393 | R$ 267612 |
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 92,962 | ||
Transfers | 1,251 | ||
Property, plant, and equipment, ending | 94,213 | 92,962 | |
Buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 41,705 | ||
Additions | 5,430 | ||
Transfers | (713) | ||
Depreciation | (1,075) | ||
Property, plant, and equipment, ending | 45,347 | 41,705 | |
Equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 152,273 | ||
Additions | 26,055 | ||
Transfers | (49,188) | ||
Write-offs and disposals | (174) | ||
Depreciation | (27,950) | ||
Property, plant, and equipment, ending | 101,016 | 152,273 | |
Transportation equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 1,984 | ||
Additions | 298 | ||
Transfers | 1,351 | ||
Depreciation | (664) | ||
Property, plant, and equipment, ending | 2,969 | 1,984 | |
Furniture and fixtures [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 18,219 | ||
Additions | 4,087 | ||
Transfers | (3,712) | ||
Write-offs and disposals | (103) | ||
Depreciation | (1,072) | ||
Property, plant, and equipment, ending | 17,419 | 18,219 | |
Other [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 7,250 | ||
Additions | 6,537 | ||
Transfers | (6,446) | ||
Depreciation | (54) | ||
Property, plant, and equipment, ending | R$ 7287 | R$ 7250 |
16 Property, plant and equipm_5
16 Property, plant and equipment (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | R$ 314393 | R$ 267612 | R$ 255050 |
Additions | 42,407 | 78,159 | 50,645 |
Transfers | (57,457) | 2,830 | 1,458 |
Write-offs and disposals | (277) | (593) | (108) |
Depreciation | (30,815) | (33,615) | (39,433) |
Property, plant, and equipment, ending | 268,251 | 314,393 | 267,612 |
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 92,962 | 92,979 | 92,507 |
Transfers | 1,251 | (17) | 472 |
Property, plant, and equipment, ending | 94,213 | 92,962 | 92,979 |
Buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 41,705 | 40,125 | 42,360 |
Additions | 5,430 | 3,497 | 73 |
Transfers | (713) | 15 | 0 |
Write-offs and disposals | 0 | ||
Depreciation | (1,075) | (1,932) | (2,308) |
Property, plant, and equipment, ending | 45,347 | 41,705 | 40,125 |
Equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 152,273 | 116,086 | 103,803 |
Additions | 26,055 | 63,216 | 46,473 |
Transfers | (49,188) | 3,149 | 986 |
Write-offs and disposals | (174) | (429) | (81) |
Depreciation | (27,950) | (29,749) | (35,095) |
Property, plant, and equipment, ending | 101,016 | 152,273 | 116,086 |
Transportation equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 1,984 | 3,473 | 3,680 |
Additions | 298 | 308 | 589 |
Transfers | 1,351 | (1,117) | |
Write-offs and disposals | (2) | ||
Depreciation | (664) | (678) | (796) |
Property, plant, and equipment, ending | 2,969 | 1,984 | 3,473 |
Furniture and fixtures [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 18,219 | 13,578 | 11,816 |
Additions | 4,087 | 5,266 | 2,972 |
Transfers | (3,712) | 734 | |
Write-offs and disposals | (103) | (162) | (27) |
Depreciation | (1,072) | (1,197) | (1,183) |
Property, plant, and equipment, ending | 17,419 | 18,219 | 13,578 |
Other [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant, and equipment, beginning | 7,250 | 1,371 | 884 |
Additions | 6,537 | 5,872 | 538 |
Transfers | (6,446) | 66 | |
Depreciation | (54) | (59) | (51) |
Property, plant, and equipment, ending | R$ 7287 | R$ 7250 | R$ 1371 |
17 Borrowings and financing (De
17 Borrowings and financing (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | R$ 3034449 | R$ 2859843 | ||||
Noncurrent | 14,224,175 | 10,384,866 | ||||
Total | 17,258,624 | 13,244,709 | R$ 13152796 | R$ 12100966 | ||
Local currency [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 2,674,805 | 977,943 | ||||
Noncurrent | 11,035,957 | 5,907,968 | ||||
Total | 13,710,762 | 6,885,911 | 6,483,387 | 6,428,145 | ||
Local currency [member] | 10th issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 0 | 41,021 | ||||
Noncurrent | 0 | 0 | ||||
Total | 0 | 41,021 | ||||
Local currency [member] | 12th issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 45,450 | 45,450 | ||||
Noncurrent | 158,425 | 203,829 | ||||
Total | 203,875 | 249,279 | ||||
Local currency [member] | 14th issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 51,873 | 41,940 | ||||
Noncurrent | 24,205 | 63,012 | ||||
Total | 76,078 | 104,952 | ||||
Local currency [member] | 17th issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 91,850 | 289,211 | ||||
Noncurrent | 183,335 | 263,226 | ||||
Total | 275,185 | 552,437 | ||||
Local currency [member] | 18th issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 45,918 | 34,239 | ||||
Noncurrent | 135,105 | 133,679 | ||||
Total | 181,023 | 167,918 | ||||
Local currency [member] | 21st issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 175,000 | 150,000 | ||||
Noncurrent | 174,769 | 349,660 | ||||
Total | 349,769 | 499,660 | ||||
Local currency [member] | 22nd issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 99,969 | 0 | ||||
Noncurrent | 678,149 | 765,689 | ||||
Total | 778,118 | 765,689 | ||||
Local currency [member] | 23rd issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 0 | 0 | ||||
Noncurrent | 864,678 | 864,603 | ||||
Total | 864,678 | 864,603 | ||||
Local currency [member] | 24th issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 0 | 0 | ||||
Noncurrent | 414,994 | 395,855 | ||||
Total | 414,994 | 395,855 | ||||
Local currency [member] | 25th issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 1,442,610 | 0 | ||||
Noncurrent | 0 | 0 | ||||
Total | 1,442,610 | 0 | ||||
Local currency [member] | 26th issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 0 | 0 | ||||
Noncurrent | 1,047,767 | 0 | ||||
Total | 1,047,767 | 0 | ||||
Local currency [member] | 27th issue debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 0 | 0 | ||||
Noncurrent | 997,000 | 0 | ||||
Total | 997,000 | 0 | ||||
Local currency [member] | Brazilian federal savings bank [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 90,382 | 83,519 | ||||
Noncurrent | 1,324,459 | 1,341,660 | ||||
Total | 1,418,832 | 1,429,250 | 1,345,684 | 1,236,674 | ||
Local currency [member] | Brazilian Development Bank - BNDES PAC [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 13,185 | 11,184 | ||||
Noncurrent | 20,247 | 27,854 | ||||
Total | 33,432 | 39,038 | ||||
Local currency [member] | Brazilian Development Bank - BNDES PAC II 9751 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 7,159 | 6,990 | ||||
Noncurrent | 37,447 | 40,685 | ||||
Total | 44,606 | 47,675 | ||||
Local currency [member] | Brazilian Development Bank - BNDES PAC II 9752 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 4,851 | 3,913 | ||||
Noncurrent | 25,470 | 24,457 | ||||
Total | 30,321 | 28,370 | ||||
Local currency [member] | Brazilian Development Bank - BNDES ONDA LIMPA [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 26,751 | 23,704 | ||||
Noncurrent | 86,809 | 100,582 | ||||
Total | 113,560 | 124,286 | ||||
Local currency [member] | Brazilian Development Bank - BNDES TIETE III [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 86,823 | 52,874 | ||||
Noncurrent | 542,519 | 383,191 | ||||
Total | 629,342 | 436,065 | ||||
Local currency [member] | Brazilian Development Bank - BNDES 2015 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 33,558 | 31,712 | ||||
Noncurrent | 454,126 | 460,646 | ||||
Total | 487,684 | 492,358 | ||||
Local currency [member] | Brazilian Development Bank - BNDES 2014 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 5,143 | 4,659 | ||||
Noncurrent | 23,017 | 25,411 | ||||
Total | 28,160 | 30,070 | ||||
Local currency [member] | Leases (Concession Agreements, Program Contracts and Contract Assets) [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 28,847 | 27,314 | ||||
Noncurrent | 399,896 | 432,357 | ||||
Total | 428,743 | 459,671 | 568,666 | 561,616 | ||
Local currency [member] | Leases (Others) [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 36,576 | 51,088 | ||||
Noncurrent | 9,300 | 23,365 | ||||
Total | 45,876 | 74,453 | [1] | 0 | [1] | |
Local currency [member] | Other [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 3,778 | 1,665 | ||||
Noncurrent | 11,382 | 8,207 | ||||
Total | 15,160 | 9,872 | ||||
Local currency [member] | Interest and charges [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 158,918 | 77,460 | ||||
Noncurrent | 0 | 0 | ||||
Total | 158,918 | 77,460 | ||||
Local currency [member] | Inter-American Development Bank - BID 2202 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 181,349 | 0 | ||||
Noncurrent | 2,524,798 | 0 | ||||
Total | 2,706,147 | 0 | ||||
Local currency [member] | Inter-American Development Bank - BID INVEST [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 44,815 | 0 | ||||
Noncurrent | 898,060 | 0 | ||||
Total | 942,875 | 0 | ||||
Foreign currency [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 359,644 | 1,881,900 | ||||
Noncurrent | 3,188,218 | 4,476,898 | ||||
Total | 3,547,862 | 6,358,798 | 6,669,409 | 5,672,821 | ||
Foreign currency [member] | Interest and charges [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 21,577 | 44,967 | ||||
Noncurrent | 0 | 0 | ||||
Total | 21,577 | 44,967 | ||||
Foreign currency [member] | Inter-American Development Bank - BID 1212 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 53,412 | 41,428 | ||||
Noncurrent | 213,649 | 207,140 | ||||
Total | 267,061 | 248,568 | ||||
Foreign currency [member] | Inter-American Development Bank - BID 2202 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 0 | 128,623 | ||||
Noncurrent | 0 | 1,914,298 | ||||
Total | 0 | 2,042,921 | ||||
Foreign currency [member] | International Bank of Reconstruction and Development -BIRDs 7662 e 8906 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 31,594 | 24,505 | ||||
Noncurrent | 393,949 | 330,898 | ||||
Total | 425,543 | 355,403 | ||||
Foreign currency [member] | Eurobonds [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 0 | 1,409,921 | ||||
Noncurrent | 0 | 0 | ||||
Total | 0 | 1,413,956 | 1,358,412 | 1,158,642 | ||
Foreign currency [member] | JICA 15 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 58,117 | 42,813 | ||||
Noncurrent | 464,936 | 385,315 | ||||
Total | 523,053 | 428,128 | ||||
Foreign currency [member] | JICA 18 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 52,253 | 38,493 | ||||
Noncurrent | 417,846 | 346,237 | ||||
Total | 470,099 | 384,730 | ||||
Foreign currency [member] | JICA 17 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 11,260 | 12,466 | ||||
Noncurrent | 156,738 | 91,845 | ||||
Total | 167,998 | 104,311 | ||||
Foreign currency [member] | JICA 19 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 91,456 | 67,372 | ||||
Noncurrent | 1,415,683 | 1,109,644 | ||||
Total | 1,507,139 | 1,177,016 | ||||
Foreign currency [member] | BID 1983AB [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 39,975 | 71,312 | ||||
Noncurrent | 78,943 | 91,521 | ||||
Total | 119,379 | R$ 163864 | R$ 225592 | R$ 270470 | ||
Foreign currency [member] | Inter-American Development Bank - BID 4623 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Current | 0 | |||||
Noncurrent | 46,474 | |||||
Total | R$ 46474 | |||||
[1] | The amount presented in Funding for Leasing (IFRS 16) includes R$ 64,955 referring to the initial adoption of the standard on January 1, 2019. |
17 Borrowings and financing (_2
17 Borrowings and financing (Details 1) | 12 Months Ended | |
Dec. 31, 2020 | ||
Local currency [member] | 10th issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2020 | |
Annual interest rates | TJLP +1.92% (Series 1 and 3) and 9.53% (Series 2) | |
Inflation adjustment | IPCA (Series 2) | |
Local currency [member] | 12th issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2025 | |
Annual interest rates | TR + 9.5% | |
Local currency [member] | 14th issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2022 | |
Annual interest rates | TJLP +1.92% (Series 1 and 3) and 9.19% (Series 2) | |
Inflation adjustment | IPCA (Series 2) | |
Local currency [member] | 17th issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2023 | |
Annual interest rates | CDI +0.75% (Series 1) and 4.5% (Series 2) and4.75% (Series 3) | |
Inflation adjustment | IPCA (Series 2 and 3) | |
Local currency [member] | 18th issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2024 | |
Annual interest rates | TJLP 1.92 % (Series 1 and 3) and 8.25% (Series 2) | |
Inflation adjustment | IPCA (Series 2) | |
Local currency [member] | 21st issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2022 | |
Annual interest rates | CDI + 0.60% e CDI+ 0.90% | |
Local currency [member] | 22nd issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2025 | |
Annual interest rates | CDI +0.58% (Series 1) and CDI + 0.90% (Series 2) and 6.0% (Series 3) | |
Inflation adjustment | IPCA (Series 3) | |
Local currency [member] | 23rd issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2027 | |
Annual interest rates | CDI +0.49% (Series 1) and CDI + 0.63% (Series 2) | |
Local currency [member] | 24th issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2029 | |
Annual interest rates | 3.20% (Series 1) and 3.37% (Series 2) | |
Inflation adjustment | IPCA (Series 1 and 2) | |
Local currency [member] | 25th issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2021 | |
Annual interest rates | CDI + 3.3% | |
Local currency [member] | 26th issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2030 | |
Annual interest rates | 4.65% (series 1) and 4.95% (series 2) | |
Inflation adjustment | IPCA (series 1 and 2) | |
Local currency [member] | 27th issue debentures [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2027 | |
Annual interest rates | CDI +1.60% (Series 1) and CDI + 1.80% (Series 2) and 2.25% (Series 3) | |
Local currency [member] | Brazilian federal savings bank [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2021/2042 | |
Annual interest rates | 5% to 9.5% | |
Inflation adjustment | TR | |
Local currency [member] | Brazilian Development Bank - BNDES PAC [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2023 | |
Annual interest rates | TJLP+1.82% | |
Local currency [member] | Brazilian Development Bank - BNDES PAC II 9751 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2027 | |
Annual interest rates | TJLP+1.72% | |
Local currency [member] | Brazilian Development Bank - BNDES PAC II 9752 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2027 | |
Annual interest rates | TJLP+1.72% | |
Local currency [member] | Brazilian Development Bank - BNDES ONDA LIMPA [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2025 | |
Annual interest rates | TJLP+1.92% | |
Local currency [member] | Brazilian Development Bank - BNDES TIETE III [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2028 | |
Annual interest rates | TJLP+1.66% | |
Local currency [member] | Brazilian Development Bank - BNDES 2015 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2035 | |
Annual interest rates | TJLP+2.18% | |
Local currency [member] | Other [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2025 | |
Annual interest rates | 3% (FEHIDRO) and TJLP + 1.5% (FINEP) | |
Local currency [member] | Inter-American Development Bank - BID 2202 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Government | |
Maturity | 2035 | |
Annual interest rates | CDI+0.86% | |
Local currency [member] | Brazilian Development Bank - BNDES 2014 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2026 | |
Annual interest rates | TJLP+1.76% | |
Local currency [member] | Leases (Concession Agreements, Program Contracts and Contract Assets) [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturity | 2035 | |
Annual interest rates | 7.73% to 10.12% | |
Inflation adjustment | IPC | |
Local currency [member] | Leases (Others) [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturity | 2023 | |
Annual interest rates | 4.24% to 9.29% | |
Local currency [member] | Inter-American Development Bank - BID INVEST [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Own funds | |
Maturity | 2034 | |
Annual interest rates | CDI+1.90% and CDI+2.70% | |
Foreign currency [member] | Inter-American Development Bank - BID 1212 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Government | |
Maturity | 2025 | |
Annual interest rates | 3.31% | [1] |
Exchange rate changes | US$ | |
Foreign currency [member] | International Bank for Reconstruction and Development - BIRD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Government | |
Maturity | 2034 | |
Annual interest rates | 2.85% | [1] |
Exchange rate changes | US$ | |
Foreign currency [member] | JICA 15 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Government | |
Maturity | 2029 | |
Annual interest rates | 1.8% and 2.5% | |
Exchange rate changes | Yen | |
Foreign currency [member] | JICA 18 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Government | |
Maturity | 2029 | |
Annual interest rates | 1.8% and 2.5% | |
Exchange rate changes | Yen | |
Foreign currency [member] | JICA 17 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Government | |
Maturity | 2035 | |
Annual interest rates | 1.2% and 0.01% | |
Exchange rate changes | Yen | |
Foreign currency [member] | JICA 19 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Government | |
Maturity | 2037 | |
Annual interest rates | 1.7% and 0.01% | |
Exchange rate changes | Yen | |
Foreign currency [member] | BID 1983AB [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Maturity | 2023 | |
Annual interest rates | 2.08% to 2.38% | [1] |
Exchange rate changes | US$ | |
Foreign currency [member] | Inter-American Development Bank - BID 4623 [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Guarantees | Government | |
Maturity | 2044 | |
Annual interest rates | 1.12% | [1] |
Exchange rate changes | US$ | |
[1] | Rates comprising LIBOR + contractually defined spread. |
17 Borrowings and financing (_3
17 Borrowings and financing (Details 2) R$ in Thousands | Dec. 31, 2020BRL (R$) |
Disclosure of detailed information about borrowings [line items] | |
2021 | R$ 3034449 |
2022 | 1,509,694 |
2023 | 1,588,829 |
2024 | 1,779,870 |
2025 | 1,335,814 |
2026 | 1,167,762 |
2027 to 2044 | 6,842,206 |
TOTAL | 17,258,624 |
Local currency [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 2,674,805 |
2022 | 1,171,627 |
2023 | 1,251,769 |
2024 | 1,481,778 |
2025 | 1,036,324 |
2026 | 920,287 |
2027 to 2044 | 5,174,172 |
TOTAL | 13,710,762 |
Local currency [member] | Debentures [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 1,952,670 |
2022 | 582,192 |
2023 | 681,272 |
2024 | 918,988 |
2025 | 485,012 |
2026 | 378,849 |
2027 to 2044 | 1,632,114 |
TOTAL | 6,631,097 |
Local currency [member] | Brazilian federal savings bank [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 90,382 |
2022 | 95,391 |
2023 | 88,779 |
2024 | 87,749 |
2025 | 93,243 |
2026 | 99,082 |
2027 to 2044 | 860,215 |
TOTAL | 1,414,841 |
Local currency [member] | BNDES [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 177,470 |
2022 | 177,472 |
2023 | 171,350 |
2024 | 164,288 |
2025 | 144,093 |
2026 | 134,841 |
2027 to 2044 | 397,591 |
TOTAL | 1,367,105 |
Local currency [member] | BID 2202 [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 181,349 |
2022 | 181,349 |
2023 | 181,349 |
2024 | 181,349 |
2025 | 181,349 |
2026 | 181,349 |
2027 to 2044 | 1,618,053 |
TOTAL | 2,706,147 |
Local currency [member] | BID INVEST [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 44,815 |
2022 | 89,630 |
2023 | 89,630 |
2024 | 89,630 |
2025 | 89,630 |
2026 | 89,630 |
2027 to 2044 | 449,910 |
TOTAL | 942,875 |
Local currency [member] | Leases (Concession Agreements, Program Contracts and Contract Assets) [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 28,847 |
2022 | 32,663 |
2023 | 35,004 |
2024 | 38,017 |
2025 | 41,387 |
2026 | 36,536 |
2027 to 2044 | 216,289 |
TOTAL | 428,743 |
Local currency [member] | Leases (Others) [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 36,576 |
2022 | 8,892 |
2023 | 408 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 to 2044 | 0 |
TOTAL | 45,876 |
Local currency [member] | Other borrowings [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 3,778 |
2022 | 4,038 |
2023 | 3,977 |
2024 | 1,757 |
2025 | 1,610 |
2026 | 0 |
2027 to 2044 | 0 |
TOTAL | 15,160 |
Local currency [member] | Borrowings interest and charges [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 159,918 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 to 2044 | 0 |
TOTAL | 159,918 |
Foreign currency [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 359,644 |
2022 | 338,067 |
2023 | 337,060 |
2024 | 298,092 |
2025 | 299,490 |
2026 | 247,475 |
2027 to 2044 | 1,668,034 |
TOTAL | 3,547,862 |
Foreign currency [member] | Borrowings interest and charges [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 21,577 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 to 2044 | 0 |
TOTAL | 44,967 |
Foreign currency [member] | BID [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 53,412 |
2022 | 53,412 |
2023 | 53,412 |
2024 | 53,412 |
2025 | 54,810 |
2026 | 2,795 |
2027 to 2044 | 42,282 |
TOTAL | 313,535 |
Foreign currency [member] | BIRD [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 31,594 |
2022 | 31,594 |
2023 | 31,594 |
2024 | 31,594 |
2025 | 31,594 |
2026 | 31,594 |
2027 to 2044 | 235,979 |
TOTAL | 425,543 |
Foreign currency [member] | JICA [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 213,086 |
2022 | 213,086 |
2023 | 213,086 |
2024 | 213,086 |
2025 | 213,086 |
2026 | 213,086 |
2027 to 2044 | 1,389,773 |
TOTAL | 2,668,289 |
Foreign currency [member] | BID 1983AB [member] | |
Disclosure of detailed information about borrowings [line items] | |
2021 | 39,975 |
2022 | 39,975 |
2023 | 38,968 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 to 2044 | 0 |
TOTAL | R$ 118918 |
17 Borrowings and financing (_4
17 Borrowings and financing (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | R$ 13244709 | R$ 13152796 | R$ 12100966 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 28,549 | |||||
Addition as per IFRS 16 | 113,233 | |||||
Funding | 4,845,860 | 1,808,587 | 1,640,130 | |||
Borrowing costs | (68,386) | (15,199) | (5,577) | |||
Monetary variation and exchange rate changes | 2,267,179 | 280,526 | 982,072 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 238,330 | 233,251 | 488,502 | |||
Interest paid | (626,625) | (737,326) | ||||
Interest and fees paid | (732,048) | |||||
Amortization | (3,244,099) | (2,148,198) | (1,678,748) | |||
Accrued interest | 559,931 | 568,679 | 563,902 | |||
Provision for interest and fees - Capitalized | 171,026 | 153,177 | 198,061 | [1] | ||
Expenses with borrowing costs | 13,176 | 10,214 | ||||
Amortization of borrowing costs | 9,128 | |||||
Borrowings and financing, ending | 17,258,624 | 13,244,709 | 13,152,796 | |||
Local currency [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 6,885,911 | 6,483,387 | 6,428,145 | |||
Foreign/local currency translation | 2,807,371 | |||||
Addition (lease) | 28,549 | |||||
Addition as per IFRS 16 | 113,233 | |||||
Funding | 4,752,889 | 1,688,186 | 1,075,244 | |||
Borrowing costs | (59,453) | (12,442) | (3,021) | |||
Monetary variation and exchange rate changes | 86,939 | 46,567 | 66,183 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | 4,587 | 10,367 | |||
Interest paid | (419,082) | (476,313) | ||||
Interest and fees paid | (491,312) | |||||
Amortization | (919,040) | (1,433,962) | (1,111,806) | |||
Accrued interest | 406,826 | 385,470 | 372,440 | |||
Provision for interest and fees - Capitalized | 128,869 | 83,119 | 133,540 | [1] | ||
Expenses with borrowing costs | 10,983 | 3,607 | ||||
Amortization of borrowing costs | 4,079 | |||||
Borrowings and financing, ending | 13,710,762 | 6,885,911 | 6,483,387 | |||
Local currency [member] | Debentures [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 3,711,228 | 3,486,861 | 3,576,842 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 3,507,640 | 1,266,755 | 750,000 | |||
Borrowing costs | (52,328) | (11,814) | (3,021) | |||
Monetary variation and exchange rate changes | 86,939 | 42,692 | 62,676 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | 0 | 0 | |||
Interest paid | (161,494) | (234,307) | ||||
Interest and fees paid | (259,175) | |||||
Amortization | (572,871) | (1,055,623) | (905,080) | |||
Accrued interest | 201,150 | 195,586 | 226,810 | |||
Provision for interest and fees - Capitalized | 26,073 | 17,233 | 34,409 | [1] | ||
Expenses with borrowing costs | 10,167 | 3,400 | ||||
Amortization of borrowing costs | 3,845 | |||||
Borrowings and financing, ending | 6,756,504 | 3,711,228 | 3,486,861 | |||
Local currency [member] | Brazilian federal savings bank [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 1,429,250 | 1,345,684 | 1,236,674 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 74,485 | 162,767 | 194,244 | |||
Borrowing costs | 0 | 0 | 0 | |||
Monetary variation and exchange rate changes | 0 | 0 | 0 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | 0 | 0 | |||
Interest paid | (111,601) | (109,128) | ||||
Interest and fees paid | (102,772) | |||||
Amortization | (84,821) | (79,404) | (85,515) | |||
Accrued interest | 73,067 | 74,421 | 75,668 | |||
Provision for interest and fees - Capitalized | 38,452 | 34,910 | 27,385 | [1] | ||
Expenses with borrowing costs | 0 | 0 | ||||
Amortization of borrowing costs | 0 | |||||
Borrowings and financing, ending | 1,418,832 | 1,429,250 | 1,345,684 | |||
Local currency [member] | BNDES [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 1,201,411 | 1,072,605 | 1,042,036 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 213,514 | 256,981 | 131,000 | |||
Borrowing costs | 0 | (628) | 0 | |||
Monetary variation and exchange rate changes | 0 | 2,082 | 3,438 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | 826 | 4,001 | |||
Interest paid | (47,164) | (83,419) | ||||
Interest and fees paid | (90,397) | |||||
Amortization | (81,213) | (131,026) | (102,314) | |||
Accrued interest | 47,668 | 60,644 | 28,909 | |||
Provision for interest and fees - Capitalized | 36,427 | 23,112 | 55,725 | [1] | ||
Expenses with borrowing costs | 259 | 207 | ||||
Amortization of borrowing costs | 234 | |||||
Borrowings and financing, ending | 1,370,902 | 1,201,411 | 1,072,605 | |||
Local currency [member] | BID 2202 [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 0 | |||||
Foreign/local currency translation | 2,807,371 | |||||
Addition (lease) | 0 | |||||
Funding | 0 | |||||
Borrowing costs | 0 | |||||
Monetary variation and exchange rate changes | 0 | |||||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | |||||
Interest paid | (37,613) | |||||
Amortization | (90,674) | |||||
Accrued interest | 22,668 | |||||
Provision for interest and fees - Capitalized | 27,886 | |||||
Expenses with borrowing costs | 557 | |||||
Borrowings and financing, ending | 2,730,195 | 0 | ||||
Local currency [member] | BID INVEST [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 0 | |||||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 0 | |||||
Funding | 950,000 | |||||
Borrowing costs | (7,125) | |||||
Monetary variation and exchange rate changes | 0 | |||||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | |||||
Interest paid | 0 | |||||
Amortization | 0 | |||||
Accrued interest | 1,638 | |||||
Provision for interest and fees - Capitalized | 0 | |||||
Expenses with borrowing costs | 0 | |||||
Borrowings and financing, ending | 944,513 | 0 | ||||
Local currency [member] | Leases (Concession Agreements, Program Contracts and Contract Assets) [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 459,671 | 568,666 | 561,616 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 0 | 0 | 0 | |||
Borrowing costs | 0 | 0 | 0 | |||
Monetary variation and exchange rate changes | 0 | 1,765 | 0 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | 3,761 | 6,366 | |||
Interest paid | (51,431) | (47,663) | ||||
Interest and fees paid | (38,196) | |||||
Amortization | (30,928) | (123,880) | (17,427) | |||
Accrued interest | 51,431 | 49,160 | 40,290 | |||
Provision for interest and fees - Capitalized | 0 | 7,862 | 16,017 | [1] | ||
Expenses with borrowing costs | 0 | 0 | ||||
Amortization of borrowing costs | 0 | |||||
Borrowings and financing, ending | 428,743 | 459,671 | 568,666 | |||
Local currency [member] | Leases (Others) [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | [2] | 74,453 | 0 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 28,549 | |||||
Addition as per IFRS 16 | [2] | 113,233 | ||||
Funding | 0 | 0 | [2] | |||
Borrowing costs | 0 | 0 | [2] | |||
Monetary variation and exchange rate changes | 0 | 0 | [2] | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | 0 | [2] | |||
Interest paid | (9,108) | (1,141) | [2] | |||
Amortization | (56,571) | (42,646) | [2] | |||
Accrued interest | 8,553 | 5,007 | [2] | |||
Provision for interest and fees - Capitalized | 0 | 0 | [2] | |||
Expenses with borrowing costs | 0 | |||||
Amortization of borrowing costs | [2] | 0 | ||||
Borrowings and financing, ending | 45,876 | 74,453 | [2] | 0 | [2] | |
Local currency [member] | Other borrowings [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 9,898 | 9,571 | 10,977 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 7,250 | 1,683 | 0 | |||
Borrowing costs | 0 | 0 | 0 | |||
Monetary variation and exchange rate changes | 0 | 28 | 69 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | 0 | 0 | |||
Interest paid | (671) | (655) | ||||
Interest and fees paid | (772) | |||||
Amortization | (1,962) | (1,383) | (1,470) | |||
Accrued interest | 651 | 652 | 763 | |||
Provision for interest and fees - Capitalized | 31 | 2 | 4 | [1] | ||
Expenses with borrowing costs | 0 | 0 | ||||
Amortization of borrowing costs | 0 | |||||
Borrowings and financing, ending | 15,197 | 9,898 | 9,571 | |||
Foreign currency [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 6,358,798 | 6,669,409 | 5,672,821 | |||
Foreign/local currency translation | (2,807,371) | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 92,971 | 120,401 | 564,886 | |||
Borrowing costs | (8,933) | (2,757) | (2,556) | |||
Monetary variation and exchange rate changes | 2,180,240 | 233,959 | 915,889 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 67,304 | 54,719 | 63,457 | |||
Interest paid | (207,543) | (261,013) | ||||
Interest and fees paid | (240,736) | |||||
Amortization | (2,325,059) | (714,236) | (566,942) | |||
Accrued interest | 153,105 | 183,209 | 191,462 | |||
Provision for interest and fees - Capitalized | 42,157 | 70,058 | 64,521 | [1] | ||
Expenses with borrowing costs | 2,193 | 6,607 | ||||
Amortization of borrowing costs | 5,049 | |||||
Borrowings and financing, ending | 3,547,862 | 6,358,798 | 6,669,409 | |||
Foreign currency [member] | BID [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 2,316,190 | 2,399,985 | 1,743,257 | |||
Foreign/local currency translation | (2,807,371) | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 52,141 | 0 | 484,690 | |||
Borrowing costs | (6,635) | 0 | (2,365) | |||
Monetary variation and exchange rate changes | 845,246 | 40,594 | 237,433 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 48,246 | 49,387 | 53,208 | |||
Interest paid | (45,010) | (83,602) | ||||
Interest and fees paid | (55,391) | |||||
Amortization | (121,088) | (171,892) | (130,520) | |||
Accrued interest | 10,490 | 26,332 | 26,910 | |||
Provision for interest and fees - Capitalized | 24,695 | 54,431 | 41,878 | [1] | ||
Expenses with borrowing costs | 398 | 885 | ||||
Amortization of borrowing costs | 955 | |||||
Borrowings and financing, ending | 317,302 | 2,316,190 | 2,399,985 | |||
Foreign currency [member] | BIRD [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 357,880 | 356,420 | 303,278 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 0 | 2,540 | 0 | |||
Borrowing costs | (2,029) | (2,540) | 0 | |||
Monetary variation and exchange rate changes | 102,029 | 12,575 | 48,279 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 1,217 | 1,657 | 3,462 | |||
Interest paid | (7,572) | (10,627) | ||||
Interest and fees paid | (7,607) | |||||
Amortization | (31,216) | (12,273) | 0 | |||
Accrued interest | 5,659 | 8,548 | 6,945 | |||
Provision for interest and fees - Capitalized | 752 | 1,561 | 2,044 | [1] | ||
Expenses with borrowing costs | 140 | 19 | ||||
Amortization of borrowing costs | 19 | |||||
Borrowings and financing, ending | 426,860 | 357,880 | 356,420 | |||
Foreign currency [member] | Eurobonds [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 1,413,956 | 1,358,412 | 1,158,642 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 0 | 0 | 0 | |||
Borrowing costs | 0 | 0 | 0 | |||
Monetary variation and exchange rate changes | 457,931 | 54,565 | 198,380 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | 0 | 0 | |||
Interest paid | (104,170) | (102,883) | ||||
Interest and fees paid | (97,952) | |||||
Amortization | (1,868,676) | 0 | 0 | |||
Accrued interest | 90,941 | 94,095 | 85,072 | |||
Provision for interest and fees - Capitalized | 9,195 | 8,943 | 13,448 | [1] | ||
Expenses with borrowing costs | 823 | 822 | ||||
Amortization of borrowing costs | 824 | |||||
Borrowings and financing, ending | 0 | 1,413,956 | 1,358,412 | |||
Foreign currency [member] | JICA [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 2,106,908 | 2,036,128 | 1,700,448 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 40,830 | 117,861 | 80,196 | |||
Borrowing costs | (117) | (112) | (191) | |||
Monetary variation and exchange rate changes | 715,956 | 104,027 | 329,638 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 17,841 | 3,675 | 6,787 | |||
Interest paid | (43,758) | (35,001) | ||||
Interest and fees paid | (33,519) | |||||
Amortization | (200,597) | (155,064) | (82,608) | |||
Accrued interest | 40,172 | 32,194 | 33,992 | |||
Provision for interest and fees - Capitalized | 6,897 | 3,013 | 1,209 | [1] | ||
Expenses with borrowing costs | 189 | 176 | ||||
Amortization of borrowing costs | 187 | |||||
Borrowings and financing, ending | 2,684,321 | 2,106,908 | 2,036,128 | |||
Foreign currency [member] | BID 1983AB [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | 163,864 | 225,592 | 270,470 | |||
Foreign/local currency translation | 0 | |||||
Addition (lease) | 0 | |||||
Addition as per IFRS 16 | 0 | |||||
Funding | 0 | 0 | 0 | |||
Borrowing costs | (152) | (105) | 0 | |||
Monetary variation and exchange rate changes | 59,078 | 8,943 | 39,241 | |||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | 0 | ||||
Interest paid | (7,033) | (10,338) | ||||
Interest and fees paid | (11,060) | |||||
Amortization | (103,482) | (71,141) | (85,306) | |||
Accrued interest | 5,843 | 9,111 | 9,681 | |||
Provision for interest and fees - Capitalized | 618 | 870 | 1,488 | [1] | ||
Expenses with borrowing costs | 643 | 1,078 | ||||
Amortization of borrowing costs | 932 | |||||
Borrowings and financing, ending | 119,379 | 163,864 | 225,592 | |||
Foreign currency [member] | Deutsche Bank [member] | ||||||
Disclosure of detailed information about borrowings [line items] | ||||||
Borrowings and financing, beginning | R$ 0 | 292,872 | 496,726 | |||
Addition as per IFRS 16 | 0 | |||||
Funding | 0 | 0 | ||||
Borrowing costs | 0 | 0 | ||||
Monetary variation and exchange rate changes | 13,255 | 62,918 | ||||
Inflation adjustment / exchange variation and incorporated interest - Capitalized | 0 | 0 | ||||
Interest paid | (18,562) | |||||
Interest and fees paid | (35,207) | |||||
Amortization | (303,866) | (268,508) | ||||
Accrued interest | 12,929 | 28,862 | ||||
Provision for interest and fees - Capitalized | 1,240 | 4,454 | [1] | |||
Expenses with borrowing costs | 3,627 | |||||
Amortization of borrowing costs | 2,132 | |||||
Borrowings and financing, ending | R$ 0 | R$ 292872 | ||||
[1] | amount related to accrued interest which as part of the contract assets. | |||||
[2] | The amount presented in Funding for Leasing (IFRS 16) includes R$ 64,955 referring to the initial adoption of the standard on January 1, 2019. |
17 Borrowings and financing (_5
17 Borrowings and financing (Details 4) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
25th issue debentures - Single Series [member] | |
Disclosure of detailed information about borrowings [line items] | |
Amount | R$ 1450000 |
Maturity | 10/2021 |
Remuneration | CDI + 3.3 p.a. |
26th issue debentures - Series 1 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Amount | R$ 600000 |
Maturity | 07/2027 |
Remuneration | IPCA+ 4.65% p.a. |
26th issue debentures - Series 2 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Amount | R$ 445000 |
Maturity | 07/2030 |
Remuneration | IPCA+ 4.95% p.a. |
27th issue debentures - Series 1 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Amount | R$ 300000 |
Maturity | 12/2023 |
Remuneration | CDI+ 1,60 p.a. |
27th issue debentures - Series 2 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Amount | R$ 400000 |
Maturity | 12/2025 |
Remuneration | CDI+ 1,80 p.a. |
27th issue debentures - Series 3 [member] | |
Disclosure of detailed information about borrowings [line items] | |
Amount | R$ 300000 |
Maturity | 12/2027 |
Remuneration | CDI+ 2,25 p.a. |
BID - Tranche - Medium Term [member] | |
Disclosure of detailed information about borrowings [line items] | |
Amount | R$ 442000 |
Maturity | 08/2029 |
Remuneration | CDI+ 1.90 p.a. |
BID - Tranche - Long Term [member] | |
Disclosure of detailed information about borrowings [line items] | |
Amount | R$ 508000 |
Maturity | 08/2034 |
Remuneration | CDI+ 2.70 p.a. |
17 Borrowings and financing (_6
17 Borrowings and financing (Details 5) | 12 Months Ended | |
Dec. 31, 2020 | ||
Adjusted EBITDA / adjusted financial expenses [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Restrictive ratios | Equal to or higher than 2.80 | |
Adjusted net debt / adjusted EBITDA [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Restrictive ratios | Equal to or lower than 3.80 | |
Adjusted total debt / adjusted EBITDA [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Restrictive ratios | Lower than 3.65 | |
Other onerous debt / adjusted EBITDA [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Restrictive ratios | Equal to or lower than 1.30 | [1] |
Adjusted current ratio [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Restrictive ratios | Higher than 1.00 | |
EBITDA / paid financial expenses [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Restrictive ratios | Equal to or higher than 2.35 | |
Net debt / adjusted EBITDA [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Restrictive ratios | Equal to or lower than 3.50 | |
[1] | "Other Onerous Debts" correspond to the sum of pension obligations and health care plan, installment payment of tax debts and installment payment of debts with the electricity supplier. |
17 Borrowings and financing (_7
17 Borrowings and financing (Details 6) R$ in Thousands | Dec. 31, 2020BRL (R$) | [1] |
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing - credit limits | R$ 5131 | |
Brazilian federal savings bank [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing - credit limits | 1,485 | |
Brazilian development bank - BNDES [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing - credit limits | 708 | |
Japan international cooperation agency - JICA [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing - credit limits | 85 | |
Inter-American Development Bank - BID [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing - credit limits | 1,506 | |
International bank for reconstruction and development - IBRD [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing - credit limits | 1,296 | |
Other [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings and financing - credit limits | R$ 51 | |
[1] | Brazilian Central Bank's exchange sell rate as of December 30, 2020 (US$ 1.00 = R$ 5.1967; Yen 1.00 = R$ 0.05043). |
17 Borrowings and financing (_8
17 Borrowings and financing (Details Narrative) R$ / shares in Units, R$ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
May 31, 2020BRL (R$)R$ / shares | May 31, 2020USD ($) | Dec. 31, 2020BRL (R$)R$ / $R$ / ¥ | Sep. 30, 2020BRL (R$) | Sep. 30, 2020USD ($) | Jan. 31, 2020BRL (R$) | Dec. 31, 2019R$ / $R$ / ¥ | |
Disclosure of detailed information about borrowings [line items] | |||||||
Issuer's net sales and/or service revenue, percentage | 25.00% | ||||||
Lease payment period | the lease payment period starts (240 monthly installments) | ||||||
17th issue debentures - series 2 [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Amortized installments amount | R$ 291800 | ||||||
25th issue debentures [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Agreement clause in case of early maturity of debt | R$ 155000 | ||||||
26th issue debentures [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Agreement clause in case of early maturity of debt | 155,000 | ||||||
27th issue debentures [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Agreement clause in case of early maturity of debt | R$ 160000 | ||||||
BID 2202 contract [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Exchange amount | R$ 2810907 | ||||||
Interest rate | CDI + 0.86% p.a. | CDI + 0.86% p.a. | |||||
Compose the debt balance | R$ / shares | R$ 5.683 | ||||||
Eurobonds [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Loan amortization amount | R$ 1910124 | ||||||
Yen | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Exchange rate | R$ / ¥ | 0.05043 | 0.03715 | |||||
USD | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Exchange rate | R$ / $ | 5.1967 | 4.0307 | |||||
USD | BID 2202 contract [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Exchange amount | $ | $ 494,617 | ||||||
USD | Eurobonds [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Loan amortization amount | $ | $ 357,763 |
18 Taxes recoverable_payable (D
18 Taxes recoverable/payable (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of taxes recoverable payable [Line Items] | ||
Current tax assets | R$ 22672 | R$ 141266 |
Income tax and social contribution [member] | ||
Summary of taxes recoverable payable [Line Items] | ||
Current tax assets | 0 | 136,436 |
Other federal taxes [member] | ||
Summary of taxes recoverable payable [Line Items] | ||
Current tax assets | 18,281 | 3,471 |
Withholding income tax (IRRF) on financial investments [member] | ||
Summary of taxes recoverable payable [Line Items] | ||
Current tax assets | R$ 4391 | R$ 1359 |
18 Taxes recoverable_payable _2
18 Taxes recoverable/payable (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of taxes recoverable payable [Line Items] | ||
Current tax liabilities | R$ 266819 | R$ 250318 |
IRRF (Withholding income tax) [member] | ||
Summary of taxes recoverable payable [Line Items] | ||
Current tax liabilities | 21,287 | 69,932 |
INSS (Social Security contribution) [member] | ||
Summary of taxes recoverable payable [Line Items] | ||
Current tax liabilities | 37,599 | 39,404 |
Cofins and Pasep [member] | ||
Summary of taxes recoverable payable [Line Items] | ||
Current tax liabilities | 92,601 | 94,027 |
Other tax payable [member] | ||
Summary of taxes recoverable payable [Line Items] | ||
Current tax liabilities | 45,291 | 46,955 |
Income tax and social contribution [member] | ||
Summary of taxes recoverable payable [Line Items] | ||
Current tax liabilities | R$ 69041 | R$ 0 |
19 Deferred taxes and contrib_3
19 Deferred taxes and contributions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax assets | R$ 931736 | R$ 905258 | R$ 933815 | R$ 1054103 |
Total deferred tax liabilities | (1,252,452) | (1,339,254) | (1,195,057) | (1,090,857) |
Deferred tax assets (liabilities), net | (320,716) | (433,996) | (261,242) | (36,754) |
Provisions [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax assets | 436,445 | 366,673 | 337,833 | 482,863 |
Pension obligations - G1 [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax assets | 154,498 | 157,998 | 157,044 | 165,503 |
Donations of underlying asset on concession agreements [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax assets | 50,142 | 51,818 | 54,131 | 55,112 |
Credit losses [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax assets | 155,719 | 145,622 | 197,920 | 199,063 |
Deferred taxes other [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax assets | 134,932 | 183,147 | 186,887 | 151,562 |
Temporary difference on concession of intangible asset [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax liabilities | (388,675) | (408,732) | (433,842) | (460,177) |
Capitalization of borrowing costs [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax liabilities | (390,211) | (409,236) | (420,978) | (415,379) |
Profit on supply to governmental entities [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax liabilities | (356,513) | (372,289) | (206,978) | (76,705) |
Actuarial gain/loss - G1 Plan [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax liabilities | (48,979) | (54,222) | (36,430) | (36,538) |
Construction margin [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax liabilities | (48,843) | (83,399) | (86,164) | (88,947) |
Borrowing costs [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Total deferred tax liabilities | R$ 19231 | R$ 11376 | R$ 10665 | R$ 13111 |
19 Deferred taxes and contrib_4
19 Deferred taxes and contributions (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Summary of deferred taxes and contributions [Line Items] | ||||
Deferred income tax assets | R$ 931736 | R$ 905258 | R$ 933815 | R$ 1054103 |
Deferred income tax liabilities | (1,252,452) | (1,339,254) | (1,195,057) | (1,090,857) |
Deferred tax assets (liabilities), net | (320,716) | (433,996) | R$ 261242 | R$ 36754 |
To be realized within 12 months [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Deferred income tax assets | 263,580 | 189,740 | ||
Deferred income tax liabilities | (31,388) | (35,954) | ||
to be realized after one year [member] | ||||
Summary of deferred taxes and contributions [Line Items] | ||||
Deferred income tax assets | 668,156 | 715,518 | ||
Deferred income tax liabilities | R$ 1221064 | R$ 1303300 |
19 Deferred taxes and contrib_5
19 Deferred taxes and contributions (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax assets, beginning | R$ 905258 | R$ 933815 | R$ 1054103 |
Deferred income tax liabilities, beginning | (1,339,254) | (1,195,057) | (1,090,857) |
Deferred tax assets (liabilities) net, beginning | (433,996) | (261,242) | (36,754) |
Deferred tax asset, changes | 26,478 | (28,557) | (120,288) |
Deferred tax liabilities, changes | 86,802 | (144,197) | (104,200) |
Deferred tax assets, net, changes | 113,280 | (172,754) | (224,488) |
Deferred income tax assets, ending | 931,736 | 905,258 | 933,815 |
Deferred income tax liabilities, ending | (1,252,452) | (1,339,254) | (1,195,057) |
Deferred tax assets (liabilities) net, ending | (320,716) | (433,996) | (261,242) |
Provisions [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax assets, beginning | 366,673 | 337,833 | 482,863 |
Deferred tax asset, changes | 69,772 | 28,840 | (145,030) |
Deferred income tax assets, ending | 436,445 | 366,673 | 337,833 |
Pension obligations - G1 [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax assets, beginning | 157,998 | 157,044 | 165,503 |
Deferred tax asset, changes | (3,500) | 954 | (8,459) |
Deferred income tax assets, ending | 154,498 | 157,998 | 157,044 |
Donations of underlying asset on concession agreements [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax assets, beginning | 51,818 | 54,131 | 55,112 |
Deferred tax asset, changes | (1,676) | (2,313) | (981) |
Deferred income tax assets, ending | 50,142 | 51,818 | 54,131 |
Credit losses [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax assets, beginning | 145,622 | 197,920 | 199,063 |
Deferred tax asset, changes | 10,097 | (52,298) | (1,143) |
Deferred income tax assets, ending | 155,719 | 145,622 | 197,920 |
Deferred taxes other [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax assets, beginning | 183,147 | 186,887 | 151,562 |
Deferred tax asset, changes | (48,215) | (3,740) | 35,325 |
Deferred income tax assets, ending | 134,932 | 183,147 | 186,887 |
Temporary difference on concession of intangible asset [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax liabilities, beginning | (408,732) | (433,842) | (460,177) |
Deferred tax liabilities, changes | 20,057 | 25,110 | 26,335 |
Deferred income tax liabilities, ending | (388,675) | (408,732) | (433,842) |
Capitalization of borrowing costs [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax liabilities, beginning | (409,236) | (420,978) | (415,379) |
Deferred tax liabilities, changes | 19,025 | 11,742 | (5,599) |
Deferred income tax liabilities, ending | (390,211) | (409,236) | (420,978) |
Profit on supply to governmental entities [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax liabilities, beginning | (372,289) | (206,978) | (76,705) |
Deferred tax liabilities, changes | 15,776 | (165,311) | (130,273) |
Deferred income tax liabilities, ending | (356,513) | (372,289) | (206,978) |
Actuarial gain/loss - G1 Plan [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax liabilities, beginning | (54,222) | (36,430) | (36,538) |
Deferred tax liabilities, changes | 5,243 | (17,792) | 108 |
Deferred income tax liabilities, ending | (48,979) | (54,222) | (36,430) |
Construction margin [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax liabilities, beginning | (83,399) | (86,164) | (88,947) |
Deferred tax liabilities, changes | 34,556 | 2,765 | 2,783 |
Deferred income tax liabilities, ending | (48,843) | (83,399) | (86,164) |
Borrowing costs [member] | |||
Summary of deferred taxes and contributions [Line Items] | |||
Deferred income tax liabilities, beginning | (11,376) | (10,665) | (13,111) |
Deferred tax liabilities, changes | (7,855) | (711) | 2,446 |
Deferred income tax liabilities, ending | R$ 19231 | R$ 11376 | R$ 10665 |
19 Deferred taxes and contrib_6
19 Deferred taxes and contributions (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Taxes And Contributions | |||
Deferred tax assets (liabilities) net, beginning | R$ 433996 | R$ 261242 | R$ 36754 |
Net change in the year - corresponding entry to the income statement | 108,037 | (154,962) | (224,596) |
Net change in the year - corresponding entry to valuation adjustments to equity (Note 21 (b)) | 5,243 | (17,792) | 108 |
Total net change | 113,280 | (172,754) | (224,488) |
Deferred tax assets (liabilities) net, ending | R$ 320716 | R$ 433996 | R$ 261242 |
19 Deferred taxes and contrib_7
19 Deferred taxes and contributions (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Deferred Taxes And Contributions | ||||
Profit before income taxes | R$ 1326002 | R$ 4677942 | R$ 3912319 | |
Statutory rate | 34.00% | 34.00% | 34.00% | |
Estimated expense at statutory rate | R$ 450841 | R$ 1590500 | R$ 1330186 | |
Tax benefit of interest on equity | 126,604 | 312,339 | 264,816 | |
Permanent differences Provision - Law 4,819/1958 - G0 | [1] | (37,675) | (44,426) | (46,544) |
Donations | (8,672) | (19,888) | (13,068) | |
Other differences | 17,900 | 32,050 | 47,731 | |
Income tax and social contribution | (352,684) | (1,310,425) | (1,077,251) | |
Current income tax and social contribution | (460,721) | (1,155,463) | (852,655) | |
Deferred income tax and social contribution | R$ 108037 | R$ 154962 | R$ 224596 | |
Effective rate | 27.00% | 28.00% | 28.00% | |
[1] | Permanent difference related to the provision for actuarial liability (Note 21 (b) (ii)). |
20 Provisions (Details)
20 Provisions (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of provisions [Line Items] | ||
Provisions | R$ 1283662 | R$ 1078451 |
Escrow deposits | (31,360) | (42,643) |
Total | 1,252,302 | 1,035,808 |
Customer claims [member] | ||
Summary of provisions [Line Items] | ||
Provisions | 160,705 | 253,665 |
Escrow deposits | (10,553) | (9,973) |
Total | 150,152 | 243,692 |
Supplier claims [member] | ||
Summary of provisions [Line Items] | ||
Provisions | 410,734 | 153,654 |
Escrow deposits | (358) | (298) |
Total | 410,376 | 153,356 |
Other civil claims [member] | ||
Summary of provisions [Line Items] | ||
Provisions | 86,083 | 93,910 |
Escrow deposits | (2,505) | (16,496) |
Total | 83,578 | 77,414 |
Tax claims [member] | ||
Summary of provisions [Line Items] | ||
Provisions | 59,678 | 59,143 |
Escrow deposits | (2,410) | (3,518) |
Total | 57,268 | 55,625 |
Labor claims [member] | ||
Summary of provisions [Line Items] | ||
Provisions | 316,880 | 325,129 |
Escrow deposits | (15,503) | (12,329) |
Total | 301,377 | 312,800 |
Environmental claims [member] | ||
Summary of provisions [Line Items] | ||
Provisions | 249,582 | 192,950 |
Escrow deposits | (31) | (29) |
Total | 249,551 | 192,921 |
Current [member] | ||
Summary of provisions [Line Items] | ||
Provisions | 760,209 | 550,247 |
Escrow deposits | 0 | 0 |
Total | 760,209 | 550,247 |
Noncurrent [member] | ||
Summary of provisions [Line Items] | ||
Provisions | 523,453 | 528,204 |
Escrow deposits | (31,360) | (42,643) |
Total | R$ 492093 | R$ 485561 |
20 Provisions (Details 1)
20 Provisions (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of provisions [Line Items] | |||
Provisions, beginning | R$ 1035808 | R$ 892862 | R$ 1078204 |
Additional provisions | 270,575 | 348,388 | 162,859 |
Interest and inflation adjustment | 295,777 | 252,243 | 124,057 |
Use of the accrual | (214,689) | (250,280) | (244,077) |
Amounts not used (reversal) | (135,169) | (207,405) | (228,181) |
Provisions, ending | 1,252,302 | 1,035,808 | 892,862 |
Customer claims [member] | |||
Summary of provisions [Line Items] | |||
Provisions, beginning | 253,665 | 290,649 | 438,619 |
Additional provisions | 16,465 | 57,314 | 29,732 |
Interest and inflation adjustment | 19,638 | 53,929 | 40,749 |
Use of the accrual | (78,640) | (99,379) | (141,421) |
Amounts not used (reversal) | (50,423) | (48,848) | (77,030) |
Provisions, ending | 160,705 | 253,665 | 290,649 |
Supplier claims [member] | |||
Summary of provisions [Line Items] | |||
Provisions, beginning | 153,654 | 67,985 | 332,037 |
Additional provisions | 149,566 | 54,223 | 36,100 |
Interest and inflation adjustment | 201,259 | 102,686 | 21,161 |
Use of the accrual | (68,801) | (42,948) | (308,253) |
Amounts not used (reversal) | (24,944) | (28,292) | (13,060) |
Provisions, ending | 410,734 | 153,654 | 67,985 |
Other civil claims [member] | |||
Summary of provisions [Line Items] | |||
Provisions, beginning | 93,910 | 98,302 | 114,544 |
Additional provisions | 15,944 | 28,888 | 22,578 |
Interest and inflation adjustment | 11,109 | 18,713 | 12,939 |
Use of the accrual | (23,009) | (9,766) | (16,146) |
Amounts not used (reversal) | (11,871) | (42,227) | (35,613) |
Provisions, ending | 86,083 | 93,910 | 98,302 |
Tax claims [member] | |||
Summary of provisions [Line Items] | |||
Provisions, beginning | 59,143 | 63,335 | 77,100 |
Additional provisions | 4,333 | 11,821 | 10,763 |
Interest and inflation adjustment | 2,737 | 2,918 | 4,157 |
Use of the accrual | (1,875) | (4,982) | (2,490) |
Amounts not used (reversal) | (4,660) | (13,949) | (26,195) |
Provisions, ending | 59,678 | 59,143 | 63,335 |
Labor claims [member] | |||
Summary of provisions [Line Items] | |||
Provisions, beginning | 325,129 | 302,935 | 299,842 |
Additional provisions | 61,782 | 167,995 | 83,499 |
Interest and inflation adjustment | 35,541 | 61,483 | 32,290 |
Use of the accrual | (61,039) | (112,084) | (44,900) |
Amounts not used (reversal) | (44,533) | (95,200) | (67,796) |
Provisions, ending | 316,880 | 325,129 | 302,935 |
Environmental claims [member] | |||
Summary of provisions [Line Items] | |||
Provisions, beginning | 192,950 | 170,419 | 160,446 |
Additional provisions | 35,392 | 42,198 | 33,392 |
Interest and inflation adjustment | 27,718 | 24,358 | 18,294 |
Use of the accrual | 0 | (312) | (115) |
Amounts not used (reversal) | (6,478) | (43,713) | (41,598) |
Provisions, ending | 249,582 | 192,950 | 170,419 |
Subtotal [member] | |||
Summary of provisions [Line Items] | |||
Provisions, beginning | 1,078,451 | 993,625 | 1,422,588 |
Additional provisions | 283,482 | 362,439 | 216,064 |
Interest and inflation adjustment | 298,002 | 264,087 | 129,590 |
Use of the accrual | (233,364) | (269,471) | (513,325) |
Amounts not used (reversal) | (142,909) | (272,229) | (261,292) |
Provisions, ending | 1,283,662 | 1,078,451 | 993,625 |
Escrow deposits [member] | |||
Summary of provisions [Line Items] | |||
Provisions, beginning | (42,643) | (100,763) | (344,384) |
Additional provisions | (12,907) | (14,051) | (53,205) |
Interest and inflation adjustment | (2,225) | (11,844) | (5,533) |
Use of the accrual | 18,675 | 19,191 | 269,248 |
Amounts not used (reversal) | 7,740 | 64,824 | 33,111 |
Provisions, ending | R$ 31360 | R$ 42643 | R$ 100763 |
20 Provisions (Details 2)
20 Provisions (Details 2) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of provisions [Line Items] | ||
Significant contingent liabilities | R$ 10460737 | R$ 9433489 |
Customer claims [member] | ||
Summary of provisions [Line Items] | ||
Significant contingent liabilities | 110,508 | 86,061 |
Supplier claims [member] | ||
Summary of provisions [Line Items] | ||
Significant contingent liabilities | 1,350,308 | 1,986,736 |
Other civil claims [member] | ||
Summary of provisions [Line Items] | ||
Significant contingent liabilities | 758,800 | 679,623 |
Tax claims [member] | ||
Summary of provisions [Line Items] | ||
Significant contingent liabilities | 1,253,636 | 1,184,811 |
Labor claims [member] | ||
Summary of provisions [Line Items] | ||
Significant contingent liabilities | 1,005,648 | 631,364 |
Environmental claims [member] | ||
Summary of provisions [Line Items] | ||
Significant contingent liabilities | R$ 5981837 | R$ 4864894 |
20 Provisions (Details Narrativ
20 Provisions (Details Narrative) - BRL (R$) R$ in Thousands | May 25, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of provisions [Line Items] | |||
Lawsuits filed by commercial customers | 690 | 680 | |
Lawsuits which customers claim a reduction in the sewage tariff | 310 | 320 | |
Lawsuits which customers plead reduction in tariff | 30 | 30 | |
Renewed guarantee insurance | R$ 500 | ||
Guarantee insurance for escrow deposit | R$ 121469 | R$ 126385 | |
Guarantee insurance for escrow deposit terms | 5 years | ||
Guarantee insurance for escrow deposit, current | 81,635 | ||
Guarantee insurance for escrow deposit outtanding | 418,365 | ||
Environmental claims [member] | |||
Summary of provisions [Line Items] | |||
Increase (decrease) in the lawsuits deemed as contingent liabilities | 1,116,943 | ||
Increase in accrued lawsuits due to revisions of expectations arising from court decisions | 56,630 | ||
Customer claims [member] | |||
Summary of provisions [Line Items] | |||
Increase (decrease) in the lawsuits deemed as contingent liabilities | 93,540 | ||
Supplier claims [member] | |||
Summary of provisions [Line Items] | |||
Increase (decrease) in the lawsuits deemed as contingent liabilities | 636,428 | ||
Increase in accrued lawsuits due to revisions of expectations arising from court decisions | 257,020 | ||
Tax claims [member] | |||
Summary of provisions [Line Items] | |||
Increase (decrease) in the lawsuits deemed as contingent liabilities | 68,825 | ||
Tax deficiency notice related to sewage services | 731,809 | 664,669 | |
Labor claims [member] | |||
Summary of provisions [Line Items] | |||
Increase (decrease) in the lawsuits deemed as contingent liabilities | 374,284 | ||
Other concession-related legal proceedings [member] | |||
Summary of provisions [Line Items] | |||
Indemnities receivable | 27,539 | R$ 114335 | |
Environmental lawsuits with settlements [member] | |||
Summary of provisions [Line Items] | |||
Consent decree | 272,055 | ||
Consent decree - performance works | 270,505 | ||
Consent decree - environmental | R$ 1550 |
21 Employees benefits (Details)
21 Employees benefits (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of employee benefits [Line Items] | |||
Present value of defined benefit obligations | R$ 5662521 | R$ 6113349 | R$ 5138445 |
Fair value of the plan's assets | 2,793,927 | 2,752,417 | 2,168,436 |
Liability as per statement of financial position - pension obligations | (2,868,594) | (3,360,932) | |
G1 Plan [member] | |||
Summary of employee benefits [Line Items] | |||
Present value of defined benefit obligations | (3,112,980) | (3,067,094) | (2,532,338) |
Fair value of the plan's assets | 2,793,927 | 2,752,417 | 2,168,436 |
Liability as per statement of financial position - pension obligations | (319,053) | (314,677) | |
G0 plan [member] | |||
Summary of employee benefits [Line Items] | |||
Present value of defined benefit obligations | (2,549,541) | (3,046,255) | (2,606,107) |
Fair value of the plan's assets | 0 | 0 | R$ 0 |
Liability as per statement of financial position - pension obligations | R$ 2549541 | R$ 3046255 |
21 Employees benefits (Details
21 Employees benefits (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of employee benefits [Line Items] | ||
Defined benefit obligation, beginning | R$ 6113349 | R$ 5138445 |
Current service cost | (40,404) | (274,368) |
Interest cost | (414,747) | (224,429) |
Actuarial (gains)/losses recorded as other comprehensive income | 585,968 | (790,473) |
Benefits paid | 320,011 | 314,366 |
Defined benefit obligation, ending | (5,662,521) | (6,113,349) |
G1 Plan [member] | ||
Summary of employee benefits [Line Items] | ||
Defined benefit obligation, beginning | (3,067,094) | (2,532,338) |
Current service cost | (40,404) | (47,001) |
Interest cost | (208,485) | (224,429) |
Actuarial (gains)/losses recorded as other comprehensive income | 64,637 | (392,876) |
Benefits paid | 138,366 | 129,550 |
Defined benefit obligation, ending | (3,112,980) | (3,067,094) |
G0 plan [member] | ||
Summary of employee benefits [Line Items] | ||
Defined benefit obligation, beginning | (3,046,255) | (2,606,107) |
Current service cost | 0 | (227,367) |
Interest cost | (206,262) | 0 |
Actuarial (gains)/losses recorded as other comprehensive income | 521,331 | (397,597) |
Benefits paid | 181,645 | 184,816 |
Defined benefit obligation, ending | R$ 2549541 | R$ 3046255 |
21 Employees benefits (Detail_2
21 Employees benefits (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of employee benefits [Line Items] | |||
Fair value of the plan's assets, beginning | R$ 2752417 | R$ 2168436 | |
Expected return on the plan assets | 187,317 | 192,965 | R$ 179449 |
Expected Company's contributions | 36,010 | 36,968 | |
Expected participants' contributions | 36,608 | 38,391 | |
Benefits paid | (138,366) | (129,549) | |
Actuarial gains/(losses) included in other comprehensive income (loss) | (80,059) | 445,206 | 113,869 |
Fair value of the plan's assets, ending | 2,793,927 | 2,752,417 | 2,168,436 |
(Deficit)/Surplus | (2,868,594) | (3,360,932) | |
G1 Plan [member] | |||
Summary of employee benefits [Line Items] | |||
Fair value of the plan's assets, beginning | 2,752,417 | 2,168,436 | |
Expected return on the plan assets | 187,317 | 192,965 | 179,449 |
Expected Company's contributions | 36,010 | 36,968 | |
Expected participants' contributions | 36,608 | 38,391 | |
Benefits paid | (138,366) | (129,549) | |
Actuarial gains/(losses) included in other comprehensive income (loss) | (80,059) | 445,206 | 113,869 |
Fair value of the plan's assets, ending | 2,793,927 | 2,752,417 | 2,168,436 |
(Deficit)/Surplus | (319,053) | (314,677) | |
G0 plan [member] | |||
Summary of employee benefits [Line Items] | |||
Fair value of the plan's assets, beginning | 0 | 0 | |
Expected return on the plan assets | 0 | 0 | 0 |
Expected Company's contributions | 0 | 0 | |
Expected participants' contributions | 0 | 0 | |
Benefits paid | 0 | 0 | |
Actuarial gains/(losses) included in other comprehensive income (loss) | 0 | 0 | 0 |
Fair value of the plan's assets, ending | 0 | 0 | R$ 0 |
(Deficit)/Surplus | R$ 2549541 | R$ 3046255 |
21 Employees benefits (Detail_3
21 Employees benefits (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of employee benefits [Line Items] | |||
Actuarial gains/(losses) on obligations | R$ 585968 | R$ 790473 | R$ 124971 |
Actuarial gains/(losses) recorded as other comprehensive income | (80,059) | 445,206 | 113,869 |
Total gains/(losses) | 505,909 | (345,267) | (11,102) |
Deferred income tax and social contribution - G1 Plan | 5,243 | (17,792) | 108 |
Valuation adjustments to equity | 511,152 | (363,059) | (10,994) |
G1 Plan [member] | |||
Summary of employee benefits [Line Items] | |||
Actuarial gains/(losses) on obligations | 64,637 | (392,876) | (114,188) |
Actuarial gains/(losses) recorded as other comprehensive income | (80,059) | 445,206 | 113,869 |
Total gains/(losses) | (15,422) | 52,330 | (319) |
Deferred income tax and social contribution - G1 Plan | 5,243 | (17,792) | 108 |
Valuation adjustments to equity | (10,179) | 34,538 | (211) |
G0 plan [member] | |||
Summary of employee benefits [Line Items] | |||
Actuarial gains/(losses) on obligations | 521,331 | (397,597) | (10,783) |
Actuarial gains/(losses) recorded as other comprehensive income | 0 | 0 | 0 |
Total gains/(losses) | 521,331 | (397,597) | (10,783) |
Deferred income tax and social contribution - G1 Plan | 0 | 0 | 0 |
Valuation adjustments to equity | R$ 521331 | R$ 397597 | R$ 10783 |
21 Employees benefits (Detail_4
21 Employees benefits (Details 4) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of employee benefits [Line Items] | |||
Cost of service, net | R$ 4608 | R$ 235976 | R$ 209817 |
Interest cost rates | 414,747 | 224,429 | 213,201 |
Expected return on the plan's assets | (187,317) | (192,965) | (179,449) |
Amount received from State of Sao Paulo (undisputed) | (95,452) | (97,300) | (96,282) |
Total expenses | 136,586 | 170,140 | 147,287 |
G1 Plan [member] | |||
Summary of employee benefits [Line Items] | |||
Cost of service, net | 4,608 | 8,609 | (22,431) |
Interest cost rates | 208,485 | 224,429 | 213,201 |
Expected return on the plan's assets | (187,317) | (192,965) | (179,449) |
Amount received from State of Sao Paulo (undisputed) | 0 | 0 | 0 |
Total expenses | 25,776 | 40,073 | 11,321 |
G0 plan [member] | |||
Summary of employee benefits [Line Items] | |||
Cost of service, net | 0 | 227,367 | 232,248 |
Interest cost rates | 206,262 | 0 | 0 |
Expected return on the plan's assets | 0 | 0 | 0 |
Amount received from State of Sao Paulo (undisputed) | (95,452) | (97,300) | (96,282) |
Total expenses | R$ 110810 | R$ 130067 | R$ 135966 |
21 Employees benefits (Detail_5
21 Employees benefits (Details 5) R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
G1 Plan [member] | |
Summary of employee benefits [Line Items] | |
Payment of benefits expected in 2021 | R$ 177347 |
Payment of benefits expected in 2022 | 172,477 |
Payment of benefits expected in 2023 | 167,906 |
Payment of benefits expected in 2024 | 162,648 |
Payment of benefits expected in 2025 or after | 2,432,602 |
Payment of benefits expected | R$ 3112980 |
Duration | 11.88 years |
G0 plan [member] | |
Summary of employee benefits [Line Items] | |
Payment of benefits expected in 2021 | R$ 169178 |
Payment of benefits expected in 2022 | 167,263 |
Payment of benefits expected in 2023 | 164,426 |
Payment of benefits expected in 2024 | 160,721 |
Payment of benefits expected in 2025 or after | 1,887,953 |
Payment of benefits expected | R$ 2549541 |
Duration | 9.40 years |
21 Employees benefits (Detail_6
21 Employees benefits (Details 6) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
G0 plan [member] | |||
Summary of employee benefits [Line Items] | |||
Discount rate - actual rate (NTN-B) | 3.07% | 3.36% | 4.84% |
Inflation rate | 3.25% | 3.50% | 4.01% |
Nominal rate of salary growth | 5.32% | 5.57% | 6.09% |
Mortality table | AT-2000 | AT-2000 | AT-2000 |
G1 Plan [member] | |||
Summary of employee benefits [Line Items] | |||
Discount rate - actual rate (NTN-B) | 3.44% | 3.37% | 4.91% |
Inflation rate | 3.25% | 3.50% | 4.01% |
Nominal rate of salary growth | 5.32% | 5.57% | 6.09% |
Mortality table | AT-2000 | AT-2000 | AT-2000 |
21 Employees benefits (Detail_7
21 Employees benefits (Details 7) | 12 Months Ended |
Dec. 31, 2020 | |
G1 Plan [member] | Discount rate [member] | Increase of 1.0% [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 322,111 |
G1 Plan [member] | Discount rate [member] | Decrease of 1.0% [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 388,571 |
G1 Plan [member] | Life expectation [member] | Increase of 1 year [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 83,576 |
G1 Plan [member] | Life expectation [member] | Decrease of 1 year [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 75,824 |
G1 Plan [member] | Wage growth rate [member] | Increase of 1.0% [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 29,598 |
G1 Plan [member] | Wage growth rate [member] | Decrease of 1.0% [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 25,173 |
G0 Plan [member] | Discount rate [member] | Increase of 1.0% [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 214,482 |
G0 Plan [member] | Discount rate [member] | Decrease of 1.0% [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 249,611 |
G0 Plan [member] | Life expectation [member] | Increase of 1 year [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 135,263 |
G0 Plan [member] | Life expectation [member] | Decrease of 1 year [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 118,909 |
G0 Plan [member] | Wage growth rate [member] | Increase of 1.0% [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Increase of R$ 310,103 |
G0 Plan [member] | Wage growth rate [member] | Decrease of 1.0% [member] | |
Summary of employee benefits [Line Items] | |
Impact on present value of the defined benefit obligations | Decrease of R$ 271,853 |
21 Employees benefits (Detail_8
21 Employees benefits (Details 8) - G1 Plan [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Summary of employee benefits [Line Items] | |
Cost of services, net | R$ 2226 |
Interest costs | 205,707 |
Net profitability on financial assets | (184,687) |
Expenditures to be recognized by the employer | R$ 23246 |
21 Employees benefits (Detail_9
21 Employees benefits (Details 9) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Employees Benefits | |||
Total fixed income | R$ 1811164 | R$ 1795554 | |
Total equities | 311,958 | 301,707 | |
Total structured investments | 575,943 | 630,933 | |
Other | 94,862 | 24,223 | |
Fair value of the plan's assets | R$ 2793927 | R$ 2752417 | R$ 2168436 |
Percentage of total fixed income | 64.80% | 65.20% | |
Percentage of total equities | 11.20% | 11.00% | |
Percentage of total structured investments | 20.60% | 22.90% | |
Percentage of other | 3.40% | 0.90% | |
Percentage of fair value of the plan's assets | 100.00% | 100.00% |
21 Employees benefits (Detai_10
21 Employees benefits (Details 10) - G0 plan [member] R$ in Thousands | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Summary of employee benefits [Line Items] | |
Interest cost rates | R$ 158214 |
Expense to be recognized | R$ 158214 |
21 Employees benefits (Detai_11
21 Employees benefits (Details 11) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of employee benefits [Line Items] | |||
Subtotal | R$ 158344 | R$ 192601 | R$ 168048 |
Expenses capitalized in assets | (4,904) | (6,022) | (5,214) |
Other | 5,841 | 8,040 | 7,592 |
Pension plan obligations (Note 29) | 159,281 | 194,619 | 170,426 |
G1 Plan [member] | |||
Summary of employee benefits [Line Items] | |||
Subtotal | 25,776 | 40,073 | 11,321 |
G0 plan [member] | |||
Summary of employee benefits [Line Items] | |||
Subtotal | 110,810 | 130,067 | 135,966 |
Sabesprev Mais Plan [member] | |||
Summary of employee benefits [Line Items] | |||
Subtotal | 21,700 | 22,461 | 20,761 |
VIVEST Plan [member] | |||
Summary of employee benefits [Line Items] | |||
Subtotal | R$ 58 | R$ 0 | R$ 0 |
21 Employees benefits (Detai_12
21 Employees benefits (Details Narrative) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020BRL (R$)Participants | Dec. 31, 2019BRL (R$)Participants | |
Summary of employee benefits [Line Items] | ||
Salaries, payroll charges and social contributions | R$ 90980 | R$ 93486 |
Sabesprev mais [member] | ||
Summary of employee benefits [Line Items] | ||
Active participants of Plan | 9,587 | 9,774 |
VIVEST [member] | ||
Summary of employee benefits [Line Items] | ||
Number of inactive participants | Participants | 24 | |
G0 plan [member] | ||
Summary of employee benefits [Line Items] | ||
Contribution - participants | R$ 0 | |
Active participants of Plan | 10 | 10 |
Beneficiaries, retirees and survivors | 1,862 | 1,960 |
G1 Plan [member] | ||
Summary of employee benefits [Line Items] | ||
Number of active participants | Participants | 3,512 | 3,758 |
Number of inactive participants | Participants | 7,580 | 7,399 |
Contribution | R$ 36009 | R$ 36968 |
Contribution - participants | 36,608 | R$ 38391 |
Actuarial deficit | 26,326 | |
Actuarial deficit - participants | R$ 26895 | |
Description of defined benefit plan | Managed by Sabesprev, the defined benefit plan (“G1 Plan”), closed to new adhesions since July 2010, receives similar contributions established in a plan of subsidy of actuarial study of Sabesprev, as follows: · 0.99% of the portion of the salary of participation up to 20 salaries; and · 8.39% of the surplus, if any, of the portion of the salary of participation over 20 salaries. | |
Health plan - Medical Assistance [member] | ||
Summary of employee benefits [Line Items] | ||
Average gross payroll | 7.79% | 9.30% |
Average gross payroll | R$ 212681 | R$ 237898 |
22 Services payable (Details Na
22 Services payable (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Services Payable | ||
Services payable | R$ 453750 | R$ 474078 |
23 Knowledge Retention Program
23 Knowledge Retention Program (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Knowledge Retention Program | ||
Severance payable, current | R$ 3975 | R$ 153377 |
24 Equity (Details)
24 Equity (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Summary of equity [Line Items] | |||
Number of shares | 683,509,869 | 683,509,869 | |
Percentage of shares | 100.00% | 100.00% | |
Other shareholders - in Brazil [member] | |||
Summary of equity [Line Items] | |||
Number of shares | [1] | 254,868,646 | 236,161,929 |
Percentage of shares | [1] | 37.29% | 34.55% |
Other shareholders - Abroad [member] | |||
Summary of equity [Line Items] | |||
Number of shares | [2],[3] | 85,133,494 | 103,823,655 |
Percentage of shares | [2],[3] | 12.45% | 15.19% |
State Department of Finance [member] | |||
Summary of equity [Line Items] | |||
Number of shares | [4] | 343,507,729 | 343,524,285 |
Percentage of shares | [4] | 50.26% | 50.26% |
[1] | As of December 31, 2020, the common shares traded in Brazil were held by 40,399 shareholders. It includes six shares held by Companhia Paulista de Parcerias (CPP), which is controlled by the Sao Paulo State Government | ||
[2] | Each ADR corresponds to 1 share. | ||
[3] | Shares traded as American Depositary Receipts (ADR) on the New York Stock Exchange, through The Bank New York Mellon, the depositary bank for the Company's ADRs. | ||
[4] | There is a lawsuit with a mandatory injunction filed under number 1051534-40.2019.8.26.0053 pending at the 7th Tax Court of the City of Sao Paulo, pleading the unlawfulness of the disposal of shares owned by the Treasury Department of the Sao Paulo State to third parties, filed by Banco Bradesco S.A., the custodian and bookkeeping agent of the Company's shares. |
24 Equity (Details 1)
24 Equity (Details 1) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity | |||
Profit for the year | R$ 973318 | R$ 3367517 | R$ 2835068 |
(-) Legal reserve - 5% | 48,666 | 168,376 | 141,755 |
Distribution of earnings | 924,652 | 3,199,141 | 2,693,313 |
Minimum mandatory dividend - 25% | R$ 231163 | R$ 799785 | R$ 673328 |
Dividend per share and per ADS | R$ 0.33820 | R$ 1.17012 | R$ 0.9851 |
24 Equity (Details 2)
24 Equity (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity | |||
Profit for the year | R$ 973318 | R$ 3367517 | R$ 2835068 |
Legal reserve | 48,666 | 168,376 | 141,755 |
Minimum mandatory dividends | 231,163 | 799,785 | 673,328 |
Additional proposed dividends | 40,806 | 141,203 | 118,859 |
Investment reserve recorded | R$ 652683 | R$ 1901126 | R$ 2258153 |
24 Equity (Details 3)
24 Equity (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of equity [Line Items] | |||
Other comprehensive loss, beginning | R$ 912154 | ||
Actuarial gains (losses) | 511,152 | R$ 363059 | R$ 10994 |
Other comprehensive loss, ending | (401,002) | (912,154) | |
G1 Plan [member] | |||
Summary of equity [Line Items] | |||
Other comprehensive loss, beginning | 105,254 | ||
Actuarial gains (losses) | (10,179) | ||
Other comprehensive loss, ending | 95,075 | 105,254 | |
G0 plan [member] | |||
Summary of equity [Line Items] | |||
Other comprehensive loss, beginning | (1,017,408) | ||
Actuarial gains (losses) | 521,331 | ||
Other comprehensive loss, ending | R$ 496077 | R$ 1017408 |
24 Equity (Details Narrative)
24 Equity (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Thousands | Apr. 28, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Equity | ||||
Authorized capital | R$ 15000000 | R$ 15000000 | ||
Subscribed and paid-in-capital | 683,509,869 | 683,509,869 | ||
Surplus minimum mandatory | R$ 80973 | R$ 60331 | ||
Dividends | R$ 231163 | 799,785 | ||
Additional proposed dividends | R$ 40806 | R$ 141203 | R$ 118859 | |
Dividend per common share | R$ 0.3979 | R$ 1.3767 | ||
Dividends distributed as interest on capital | R$ 141203 | |||
Withholding income tax recognized in current liabilities | R$ 14430 | R$ 60230 | ||
Interest on capital balance payable | 231,611 | 800,352 | ||
Interest on capital balance payable declared | 231,163 | 799,785 | ||
Interest on capital balance payable witheld income tax | 448 | 567 | ||
Investment reserve | 6,751,258 | 6,098,575 | ||
Retained earnings | 652,683 | |||
Totaling proposed dividends | R$ 271969 | R$ 940988 | ||
Percentage of allocating net income | 5.00% | |||
Percentage of maximum limit allocating net income | 20.00% | |||
Description of legal reserve | Earnings reserve - legal reserve: created by allocating 5% of the net income for the year up to the limit of 20% of the share capital. The Company may not create the legal reserve in the year in which the balance of this reserve, plus the amount of the capital reserves, exceeds 30% of the share capital. |
25 Earnings per share (Details)
25 Earnings per share (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [abstract] | |||
Earnings attributable to Company's owners | R$ 973318 | R$ 3367517 | R$ 2835068 |
Weighted average number of common shares issued | 683,509,869 | 683,509,869 | 683,509,869 |
Basic and diluted earnings per share (reais per share) | R$ 1.42 | R$ 4.93 | R$ 4.15 |
26 Operating segment informat_3
26 Operating segment information (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of operating segments [line items] | ||||
Gross operating revenue | R$ 18874396 | R$ 19080598 | R$ 17056279 | |
Gross sales deductions | (1,076,855) | (1,096,944) | (971,185) | |
Net operating revenue | 17,797,541 | 17,983,654 | 16,085,094 | |
Costs, selling and administrative expenses | (13,426,960) | (12,256,984) | (10,943,540) | |
Income from operations before other operating expenses, net and equity accounting | 4,370,581 | 5,726,670 | 5,141,554 | |
Other operating income/(expenses), net | 107,656 | (18,748) | 28,591 | |
Equity accounting | 14,136 | 3,701 | 6,510 | |
Financial result, net | (3,166,371) | (1,033,681) | (1,264,336) | |
Income from operations before taxes | 1,326,002 | 4,677,942 | 3,912,319 | |
Depreciation and amortization | (2,037,112) | (1,780,094) | (1,392,541) | |
Sanitation [member] | ||||
Disclosure of operating segments [line items] | ||||
Gross operating revenue | [1] | 15,157,780 | 16,134,032 | 14,253,609 |
Gross sales deductions | [1] | (1,076,855) | (1,096,944) | (971,185) |
Net operating revenue | [1] | 14,080,925 | 15,037,088 | 13,282,424 |
Costs, selling and administrative expenses | [1] | (9,796,821) | (9,375,590) | (8,203,883) |
Income from operations before other operating expenses, net and equity accounting | [1] | 4,284,104 | 5,661,498 | 5,078,541 |
Depreciation and amortization | [1] | (2,037,112) | (1,780,094) | (1,392,541) |
Reconciliation to the financial statements [member] | ||||
Disclosure of operating segments [line items] | ||||
Gross operating revenue | [2] | 3,716,616 | 2,946,566 | 2,802,670 |
Gross sales deductions | [2] | 0 | 0 | |
Net operating revenue | [2] | 3,716,616 | 2,946,566 | 2,802,670 |
Costs, selling and administrative expenses | [2] | (3,630,139) | (2,881,394) | (2,739,657) |
Income from operations before other operating expenses, net and equity accounting | [2] | R$ 86477 | R$ 65172 | R$ 63013 |
[1] | See note 33 for further information about non-cash items, other than depreciation and amortization that impact segment results, and for additionals to long-lived asset information. | |||
[2] | Construction revenue and related costs not reported to the CODM. Revenue from construction is recognized in accordance with IFRIC 12 (Concession Agreements) and IFRS 15 (Revenue from Contracts with Customers), as all performance obligations are satisfied over time. See Note 15 (e). |
27 Insurance (Details)
27 Insurance (Details) R$ in Thousands | Dec. 31, 2020BRL (R$) |
Summary of insurance [Line Items] | |
Coverage | R$ 5796130 |
Specified risks - fire [member] | |
Summary of insurance [Line Items] | |
Coverage | 2,185,827 |
Engineering risk [member] | |
Summary of insurance [Line Items] | |
Coverage | 2,764,278 |
Guarantee insurance for escrow deposit [member] | |
Summary of insurance [Line Items] | |
Coverage | 500,000 |
Traditional guarantee insurance [member] | |
Summary of insurance [Line Items] | |
Coverage | 100,000 |
Civil liability- d&o (directors and officers) [member] | |
Summary of insurance [Line Items] | |
Coverage | 100,000 |
Civil liability - works [member] | |
Summary of insurance [Line Items] | |
Coverage | 136,010 |
Domestic and international transportation [member] | |
Summary of insurance [Line Items] | |
Coverage | 1 |
Civil liability - operations [member] | |
Summary of insurance [Line Items] | |
Coverage | 10,000 |
Other insurance coverage [member] | |
Summary of insurance [Line Items] | |
Coverage | R$ 15 |
28 Operating revenue (Details)
28 Operating revenue (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of operating revenue [Line Items] | |||
Net operating revenue | R$ 17797541 | R$ 17983654 | R$ 16085094 |
Metropolitan region of sao paulo [member] | |||
Summary of operating revenue [Line Items] | |||
Net operating revenue | 10,722,384 | 11,849,776 | 10,295,509 |
Regional systems [member] | |||
Summary of operating revenue [Line Items] | |||
Net operating revenue | 4,435,396 | 4,284,256 | 3,958,100 |
Sanitation services [member] | |||
Summary of operating revenue [Line Items] | |||
Net operating revenue | R$ 15157780 | R$ 16134032 | R$ 14253609 |
28 Operating revenue (Details 1
28 Operating revenue (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Operating Revenue | ||||
Revenue from sanitation services | [1] | R$ 15157780 | R$ 16134032 | R$ 14253609 |
Construction revenue | 3,716,616 | 2,946,566 | 2,802,670 | |
Sales tax | (1,009,358) | (1,035,051) | (916,808) | |
Regulation, Control and Oversight Fee (TRCF) | (67,497) | (61,893) | (54,377) | |
Net operating revenue | R$ 17797541 | R$ 17983654 | R$ 16085094 | |
[1] | Includes the amount of R$ 72,962 corresponding to the TRCF charged from customers from the municipalities regulated by ARSESP (R$ 70,122 in 2019). |
28 Operating revenue (Details N
28 Operating revenue (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Revenue | ||
Amount corresponding to TRCF charged from customers | R$ 72962 | R$ 70122 |
29 Operating costs and expens_3
29 Operating costs and expenses (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of operating costs and expenses [Line Items] | |||
Operating costs | R$ 11179667 | R$ 10137637 | R$ 9086456 |
Selling expenses | (751,286) | (803,404) | (693,480) |
Allowance for doubtful accounts | (444,826) | (128,099) | (166,727) |
Administrative expenses | (1,051,181) | (1,187,844) | (996,877) |
Total | (13,426,960) | (12,256,984) | (10,943,540) |
Bad debt expense, net of recoveries [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Allowance for doubtful accounts | (444,826) | (128,099) | (166,727) |
Total | (444,826) | (128,099) | (166,727) |
Depreciation and amortization [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Operating costs | (1,882,259) | (1,659,779) | (1,276,444) |
Selling expenses | (59,201) | (31,649) | (17,272) |
Administrative expenses | (95,652) | (88,666) | (98,825) |
Total | (2,037,112) | (1,780,094) | (1,392,541) |
Tax expenses [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Administrative expenses | (77,416) | (73,205) | (58,750) |
Total | (77,416) | (73,205) | (58,750) |
Salaries, payroll charges and benefits [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Operating costs | (1,958,395) | (1,938,265) | (1,959,539) |
Selling expenses | (271,565) | (270,549) | (289,378) |
Administrative expenses | (257,829) | (278,507) | (254,284) |
Total | (2,487,789) | (2,487,321) | (2,503,201) |
Pension plan obligations [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Operating costs | (37,281) | (49,564) | (25,066) |
Selling expenses | (5,059) | (6,848) | (3,602) |
Administrative expenses | (116,941) | (138,207) | (141,758) |
Total | (159,281) | (194,619) | (170,426) |
Construction costs [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Operating costs | (3,630,139) | (2,881,394) | (2,739,657) |
Total | (3,630,139) | (2,881,394) | (2,739,657) |
General supplies [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Operating costs | (244,054) | (259,401) | (238,034) |
Selling expenses | (5,471) | (10,332) | (6,391) |
Administrative expenses | (14,237) | (3,216) | (4,881) |
Total | (263,762) | (272,949) | (249,306) |
Treatment supplies [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Operating costs | (338,756) | (310,380) | (265,146) |
Total | (338,756) | (310,380) | (265,146) |
Outsourced services [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Operating costs | (1,251,839) | (1,250,890) | (996,477) |
Selling expenses | (290,512) | (360,190) | (273,470) |
Administrative expenses | (230,054) | (197,357) | (204,728) |
Total | (1,772,405) | (1,808,437) | (1,474,675) |
Electricity [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Operating costs | (1,214,831) | (1,140,160) | (956,840) |
Selling expenses | (1,200) | (1,333) | (1,154) |
Administrative expenses | (1,359) | (1,436) | (1,363) |
Total | (1,217,390) | (1,142,929) | (959,357) |
General expenses [member] | |||
Summary of operating costs and expenses [Line Items] | |||
Operating costs | (622,113) | (647,804) | (629,253) |
Selling expenses | (118,278) | (122,503) | (102,213) |
Administrative expenses | (257,693) | (407,250) | (232,288) |
Total | R$ 998084 | R$ 1177557 | R$ 963754 |
30 Financial Income (Expenses_2
30 Financial Income (Expenses) (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Summary of financial income expense [Line Items] | ||||
Financial expenses | R$ 1324759 | R$ 1173425 | R$ 807967 | |
Financial income | 336,731 | 372,842 | 446,302 | |
Financial income (expenses), net before exchange rate changes | (988,028) | (800,583) | (361,665) | |
Exchange rate changes, net | (2,178,343) | (233,098) | (902,671) | |
Financial income (expenses), net | (3,166,371) | (1,033,681) | (1,264,336) | |
Inflation adjustment gains [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial income | 120,957 | 91,180 | 105,952 | |
Exchange rate changes on assets [member] | ||||
Summary of financial income expense [Line Items] | ||||
Exchange rate changes, net | 1,894 | 863 | 13,235 | |
Other exchange rate changes [member] | ||||
Summary of financial income expense [Line Items] | ||||
Exchange rate changes, net | 4 | (1) | (9) | |
Interest and charges on borrowings and financing - local currency [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial expenses | (348,050) | (331,367) | (332,149) | |
Interest and charges on borrowings and financing - foreign currency [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial expenses | (136,257) | (165,421) | (171,686) | |
Other financial expenses [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial expenses | (328,413) | (344,508) | (187,563) | |
Income tax over international remittance [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial expenses | (15,134) | (17,650) | (19,779) | |
Inflation adjustment on borrowings and financing [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial expenses | (86,938) | (44,802) | (66,183) | |
Other inflation adjustments [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial expenses | (142,313) | (107,584) | (45,193) | |
Interest and inflation adjustments on provisions [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial expenses | [1] | (267,654) | (162,093) | 14,586 |
Exchange rate changes on borrowings and financing [member] | ||||
Summary of financial income expense [Line Items] | ||||
Exchange rate changes, net | [2] | (2,180,241) | (233,960) | (915,897) |
Other Financial Income [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial income | 4 | 14 | 10 | |
Cofins and Pasep [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial income | (22,328) | (20,028) | (22,693) | |
Interest income [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial income | 162,576 | 150,054 | 175,939 | |
Income on financial investments [member] | ||||
Summary of financial income expense [Line Items] | ||||
Financial income | R$ 75522 | R$ 151622 | R$ 187094 | |
[1] | Increase of R$ 105.6 million, due to the increase in interest and monetary variations on lawsuits. | |||
[2] | Increase of R$ 1,946.3 million, due to the higher appreciation of the U.S. dollar and the Yen against the Real in 2020 (28.9% and 35.8%, respectively), compared to appreciation presented in 2019 (4.0% and 5.3%, respectively). |
31 Other operating income (ex_3
31 Other operating income (expenses), net (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Operating Income Expenses Net | |||
Other operating income, net | R$ 70288 | R$ 75667 | R$ 93089 |
Other operating expenses | 37,368 | (94,415) | (64,498) |
Other operating income (expenses), net | R$ 107656 | R$ 18748 | R$ 28591 |
32 Commitments (Details)
32 Commitments (Details) R$ in Thousands | Dec. 31, 2020BRL (R$) |
Summary of commitments [Line Items] | |
Contractual obligations - expenses | R$ 2762266 |
Contractual obligations - investments | 6,132,040 |
Total | 8,894,306 |
1 year [member] | |
Summary of commitments [Line Items] | |
Contractual obligations - expenses | 1,301,725 |
Contractual obligations - investments | 2,211,198 |
Total | 3,512,923 |
1-3 years [member] | |
Summary of commitments [Line Items] | |
Contractual obligations - expenses | 633,296 |
Contractual obligations - investments | 1,642,792 |
Total | 2,276,088 |
3-5 years [member] | |
Summary of commitments [Line Items] | |
Contractual obligations - expenses | 142,484 |
Contractual obligations - investments | 2,103,935 |
Total | 2,246,419 |
More than 5 years [member] | |
Summary of commitments [Line Items] | |
Contractual obligations - expenses | 684,761 |
Contractual obligations - investments | 174,115 |
Total | R$ 858876 |
33 Supplemental cash flow inf_3
33 Supplemental cash flow information (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Supplemental Cash Flow Informations Abstract | ||||
Total additions to contract assets (Note 14) | R$ 3984158 | [1] | R$ 3532283 | R$ 3188943 |
Total additions to intangible assets (Note 15 (b)) | 411,285 | 1,788,907 | 1,144,728 | |
Items not affecting cash (see breakdown below) | (1,095,285) | (2,125,943) | (2,201,112) | |
Total additions to intangible assets as per statement of cash flows | 3,300,158 | 3,195,247 | 2,132,559 | |
Investments and financing operations affecting intangible assets but not cash: | ||||
Interest capitalized in the year (Note 15 (d)) | 238,330 | 233,251 | 488,502 | |
Contractors payable | 142,514 | 252,675 | 297,872 | |
Program contract commitments | 4,422 | 35,817 | 149,974 | |
Public Private Partnership - Sao Lourenco PPP (Note 15 (g)) | 0 | 10,591 | 273,737 | |
Performance agreements | 314,720 | 78,296 | 0 | |
Right of use | 28,549 | 113,233 | 0 | |
Construction margin (Note 26) | 85,976 | 65,172 | 63,013 | |
Agreement with the Municipality of Maua (Note 10 (a)) | 280,774 | 0 | 0 | |
Agreement with the Municipality of Santo Andre | 0 | 1,336,908 | 0 | |
Agreement with the municipality of Guarulhos | 0 | 0 | 928,014 | |
Total | R$ 1095285 | R$ 2125943 | R$ 2201112 | |
[1] | The largest additions of the period are located in the municipalities of Sao Paulo, Praia Grande and Sao Bernardo do Campo, in the amounts of R$ 1,676 million, R$ 284 million and R$ 228 million, respectively. |
34 Events after the reporting_2
34 Events after the reporting period (Details Narrative) - Event after the reporting period [member] | Apr. 08, 2021 | Mar. 17, 2021 | Feb. 03, 2021 |
Disclosure of non-adjusting events after reporting period [line items] | |||
Description of COVID-19 - suspension of cuts and debt renegotiation | On February 3, 2021, the Company approved: (i) suspend cuts and renegotiate debts for commercial and service customers residing in the operated municipalities that are in the orange and red phases of the São Paulo / Covid-19 Plan; (ii) the validity period will run from February 3, 2021 until March 31, 2021; (iii) the existing debts, including the agreements signed during the pandemic period, will be renegotiated without the application of a fine and interest, only monetary adjustment, according to the Company's policy and procedure; (iv) the term for installments will be 12 months, from the date of the renegotiation of outstanding balances; (v) the debtor will not be included in the credit protection register for debts until March 31, 2021; (vi) debtors which may have been included in the credit protection register during the pandemic will be withdrawn immediately after the debt is renegotiated with Sabesp. On March 16, 2021, the Company extended from March 31 to April 30, 2021, the measures to minimize the economic impacts of the pandemic in commercial and service establishments, mentioned above. | ||
Description of New Legal Sanitation Framework - recognition of financial asset | The Company has been maintaining investments made and not recovered through the rendering of services, within the original term of the contract, as intangible assets, amortized by the useful life of the asset, taking into consideration the solid track record of concession renewal and, therefore, the continuity of service rendering, since, although Law 14,026/2020, New Legal Sanitation Framework, had been approved by the Brazilian President with vetoes, including on the extension of program contracts, such vetoes would still be voted in the Brazilian Congress, for this reason the Company maintained, for the reference date of December 31, 2020, the recognition of the investments made in the concessions as intangible assets. However, on March 17, 2021, the House of Representative casted a vote to maintain the restriction regarding the extension of program contracts, i.e. the granting authorities will no longer be able to sign contracts directly and will have to hold bidding processes for the provision of services. Accordingly, SABESP is analyzing the possible impacts of recognizing a financial asset under intangible assets that may be reclassified, referring to the contractual rights to receive cash (indemnities) at the end of the contracts, corresponding to the investments made and not recovered over the provision of services. | ||
Description of Results of the ARSESP's Publics Consultations | On April 8, 2021, ARSESP published the results of the Calculation of the Maximum Average Tariff (P0) and X Factor of the Third Ordinary Tariff Revision and the results of the Proposed Revision of Sabesp’s Tariff Structure. Although a new tariff structure was approved, the tariff for 2021 will still be based on the current tariff structure, while the new structure will be applied from 2022 onwards. The impact of the tariff adjustment for residential and non-residential, residential social and wholesale (water and sewage treatment) customers in 2021 is 7.6%, negative 1.0% and 5.45%, respectively. Further, the real tariff readjustments for the residential category for 2022, 2023 and 2024 were set at 1.5%, 3% and 4.6%, respectively, together with the expansion of beneficiaries in the vulnerable residential category and the resources intended for the commercial programs of the 2019-2020. The new tariff structure was defined by ARSESP considering four groups: (i) minimum consumption versus fixed tariff with a portion being determined by reference to volume of water used; (ii) tariffs segregated by type of service (such as water, sewage collection and sewage treatment); (iii) social tariff; and (iv) non-residential tariffs. |