XML 59 R45.htm IDEA: XBRL DOCUMENT
v3.21.1

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

X
- Definition The disclosure of credit risk. [Refer: Credit risk [member]] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2020-01-01 -Paragraph 10 -Subparagraph e -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2020-en-r&anchor=para_10_e&doctype=Standard -URIDate 2020-01-01 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Name IFRS -Number 7 -IssueDate 2020-01-01 -Section Credit risk -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2020-en-r&doctype=Standard&dita_xref=IFRS07_g35A-38_TI -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfCreditRiskExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of the fair value of financial instruments. [Refer: Financial instruments, class [member]; At fair value [member]] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2020-01-01 -Paragraph 10 -Subparagraph e -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2020-en-r&anchor=para_10_e&doctype=Standard -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfFairValueOfFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure of liquidity risk. [Refer: Liquidity risk [member]] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2020-01-01 -Paragraph 10 -Subparagraph e -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2020-en-r&anchor=para_10_e&doctype=Standard -URIDate 2020-01-01 + Details
Name: | ifrs-full_DisclosureOfLiquidityRiskExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | sbs_RiskManagementAbstract
Namespace Prefix: | sbs_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The tabular disclosure of currency exposure. + References No definition available. + Details
Name: | sbs_ScheduleOfCurrencyExposureTableTextBlock
Namespace Prefix: | sbs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The tabular disclosure of sensitivity analysis on interest rate risk. + References No definition available. + Details
Name: | sbs_ScheduleOfSensitivityAnalysisOnInterestRateRiskTableTextBlock
Namespace Prefix: | sbs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure represents information related to summary of borrowing and financing variable interest rate. + References No definition available. + Details
Name: | sbs_SummaryOfBorrowingAndFinancingVariableInterestRateTableTextBlock
Namespace Prefix: | sbs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure represents information related to summary of capital management. + References No definition available. + Details
Name: | sbs_SummaryOfCapitalManagementTableTextBlock
Namespace Prefix: | sbs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure represents information related to summary of credit information of banks. + References No definition available. + Details
Name: | sbs_SummaryOfCreditInformationOfBanksTableTextBlock
Namespace Prefix: | sbs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure represents information related to summary of exposure to exchange risk. + References No definition available. + Details
Name: | sbs_SummaryOfExposureToExchangeRiskTableTextBlock
Namespace Prefix: | sbs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure represents information related to summary of financial liabilities. + References No definition available. + Details
Name: | sbs_SummaryOfFinancialLiabilitiesTableTextBlock
Namespace Prefix: | sbs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The disclosure represents information related to summary of increase decrease in exchange rate. + References No definition available. + Details
Name: | sbs_SummaryOfIncreaseDecreaseInExchangeRateTableTextBlock
Namespace Prefix: | sbs_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration