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Risks and Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Assets and liabilities in foreign currencies

Assets and Liabilities in Foreign Currencies


In millions of Brazilian Reais	12/31/2019			12/31/2018
Assets in foreign currency
Cash, cash equivalents and financial investments in foreign currency (except hedging instruments)		455.6			254.2
Foreign trade receivables, net of allowance for doubtful accounts and advances to foreign customers		213.5			235.1
Other net assets in foreign (except cash, cash equivalents, financial investments, trade receivables, financing, and payables)		1,445.0			1,384.9

		2,114.1			1,874.2

Liabilities in foreign currency
Financing in foreign currency, gross of transaction costs and discount		(6,895.1	)		(5,515.6	)
Payables arising from imports, net of advances to foreign suppliers		(344.5	)		(567.7	)

		(7,239.6	)		(6,083.3	)

Foreign currency hedging instruments		3,636.4			2,483.0

Net liability position – Total		(1,489.1	)		(1,726.1	)

Net asset (liability) position – Income statement effect		452.0			282.7
Net liability position – Equity effect		(1,941.1	)		(2,008.8	)

Sensitivity analysis of assets and liabilities in foreign currency

The table below shows, in the three scenarios, the effects of exchange rate changes on the net liability position of R$ 1,489.1 million in foreign currency as of December 31, 2019:


In millions of Brazilian Reais	Risk	Scenario I			Scenario II			Scenario III
		Likely			25%			50%
(1) Income statement effect	Real devaluation		45.2			113.0			226.0
(2) Equity effect	Real devaluation		(194.1	)		(485.3	)		(970.6	)

(1) + (2)	Net effect		(148.9	)		(372.3	)		(744.6	)

(3) Income statement effect	Real appreciation		(45.2	)		(113.0	)		(226.0	)
(4) Equity effect	Real appreciation		194.1			485.3			970.6

(3) + (4)	Net effect		148.9			372.3			744.6

The table below shows, in the three scenarios, the effects of exchange rate changes on the net liability position of R$ 1,726.1 million in foreign currency as of December 31, 2018:


In millions of Brazilian Reais	Risk	Scenario I			Scenario II			Scenario III
		Likely			25%			50%
(1) Income statement effect	Real devaluation		28.3			70.7			141.4
(2) Equity effect	Real devaluation		(200.9	)		(502.2	)		(1.004.4	)

(1) + (2)	Net effect		(172.6	)		(431.5	)		(863.0	)

(3) Income statement effect	Real appreciation		(28.3	)		(70.7	)		(141.4	)
(4) Equity effect	Real appreciation		200.9			502.2			1.004.4

(3) + (4)	Net effect		172.6			431.5			863.0

Financial assets and liabilities exposed to floating interest rates

The financial assets and liabilities exposed to floating interest rates are demonstrated below:


In millions of Brazilian Reais	Note	12/31/2019			12/31/2018
DI
Cash equivalents	4.a		1,780.9			3,722.3
Financial investments	4.b		2,610.7			2,537.3
Asset position of foreign exchange hedging instruments—DI	34.g		19.3			33.9
Loans and debentures	16.a		(6,268.6	)		(8,440.9	)
Liability position of foreign exchange hedging instruments—DI	34.g		(3,318.3	)		(2,205.5	)
Liability position of fixed interest instruments + IPCA – DI	34.g		(821.9	)		(823.5	)

Net liability position in DI			(5,997.9	)		(5,176.4	)

TJLP
Loans – TJLP	16.a		(103.9	)		(201.2	)

Net liability position in TJLP			(103.9	)		(201.2	)

LIBOR
Asset position of foreign exchange hedging instruments—LIBOR	34.g		850.3			811.6
Loans—LIBOR	16.a		(1,457.3	)		(1,437.1	)

Net liability position in LIBOR			(607.0	)		(625.5	)

TIIE
Loans—TIIE	16.a		0			(4.0	)

Net liability position in TIIE			0			(4.0	)

SELIC
Loans – SELIC	16.a		(30.4	)		(51.5	)

Net liability position in SELIC			(30.4	)		(51.5	)

Total net liability position exposed to floating interest			(6,739.2	)		(6,058.6	)

Sensitivity analysis of floating interest rate risk

The tables below show the incremental expenses and income that would be recognized in financial income, due to the effect of floating interest rate changes in different scenarios.


		12/31/2019
In millions of Brazilian Reais	Risk	Scenario I			Scenario II			Scenario III
		Likely			25%			50%
Exposure of interest rate risk
Interest effect on cash equivalents and financial investments	Increase in DI		29.3			73.3			146.5
Foreign exchange hedging instruments (assets in CDI) effect	Increase in DI		0.1			0.1			0.3
Interest effect on debt in DI	Increase in DI		(44.5	)		(111.2	)		(222.3	)
Interest rate hedging instruments (liabilities in CDI) effect	Increase in DI		(39.2	)		(85.6	)		(162.9	)

Incremental expenses			(54.3	)		(123.4	)		(238.4	)

Interest effect on debt in TJLP	Increase in TJLP		(1.2	)		(3.0	)		(6.1	)

Incremental expenses			(1.2	)		(3.0	)		(6.1	)

Foreign exchange hedging instruments (assets in LIBOR) effect	Increase in LIBOR		1.7			4.3			8.6
Interest effect on debt in LIBOR	Increase in LIBOR		(3.6	)		(8.9	)		(17.8	)

Incremental expenses			(1.9	)		(4.6	)		(9.2	)

Interest effect on debt in TIIE	Increase in TIIE		0			0			0

Incremental expenses			0			0			0

Interest effect on debt in SELIC	Increase in SELIC		(0.3	)		(0.6	)		(1.3	)

Incremental expenses			(0.3	)		(0.6	)		(1.3	)


		12/31/2018
In millions of Brazilian Reais	Risk	Scenario I			Scenario II			Scenario III
		Likely			25%			50%
Exposure of interest rate risk
Interest effect on cash equivalents and financial investments	Increase in DI		32.7			81.7			163.3
Foreign exchange hedging instruments (assets in DI) effect	Increase in DI		0.1			0.2			0.5
Interest effect on debt in DI	Increase in DI		(55.0	)		(137.4	)		(274.9	)
Interest rate hedging instruments (liabilities in DI) effect	Increase in DI		(33.7	)		(73.4	)		(139.6	)

Incremental expenses			(55.9	)		(128.9	)		(250.7	)

Interest effect on debt in TJLP	Increase in TJLP		(1.7	)		(4.2	)		(8.3	)

Incremental expenses			(1.7	)		(4.2	)		(8.3	)

Foreign exchange hedging instruments (assets in LIBOR) effect	Increase in LIBOR		2.8			6.9			13.9
Interest effect on debt in LIBOR	Increase in LIBOR		(3.6	)		(9.1	)		(18.1	)

Incremental expenses			(0.8	)		(2.2	)		(4.2	)

Interest effect on debt in TIIE	Increase in TIIE		(0.1	)		(0.3	)		(0.5	)

Incremental expenses			(0.1	)		(0.3	)		(0.5	)

Interest effect on debt in SELIC	Increase in SELIC		(0.4	)		(1.0	)		(2.0	)

Incremental expenses			(0.4	)		(1.0	)		(2.0	)

Summary of Credit Risk of Cash, Cash Equivalents and Financial Investments

The credit risk of financial institution and government of cash, cash equivalents and financial investments is summarized below:


	Fair Value
Counterparty credit rating	12/31/2019		12/31/2018
AAA		4,906,077		5,933,671
AA		331,512		707,358
A		418,020		262,553
BBB		56,488		90,824

Total		5,712,097		6,994,406

Allowance for expected losses on doubtful accounts balances on trade receivables

The subsidiaries of the Company request guarantees related to trade receivables and other receivables in specific situations to customers, but these guarantees don’t influence in the calculation of risk of loss. The subsidiaries of the Company maintained the following allowance for


	12/31/2019		12/31/2018
Ipiranga		447,235		442,486
Ultragaz		94,985		61,975
Oxiteno		13,252		12,371
Extrafarma		3,419		5,858
Ultracargo		2,001		2,089

Total		560,892		524,779

credit risk exposure

The table below presents information about credit risk exposure:


	12/31/2019							12/31/2018
	Weighted average rate of losses			Accounting balance		Provision for losses		Weighted average rate of losses			Accounting balance		Provision for losses
Current		1.3	%		3,843,803		50,198		1.5	%		4,372,784		66,208
less than 30 days		2.1	%		185,612		3,975		4.0	%		132,884		5,344
31-60 days		7.1	%		37,801		2,688		7.9	%		68,733		5,396
61-90 days		20.4	%		24,861		5,062		11.3	%		59,006		6,664
91-180 days		41.8	%		91,633		38,337		55.8	%		105,703		58,959
more than 180 days		53.1	%		867,618		460,632		58.6	%		652,075		382,208

					5,051,328		560,892					5,391,185		524,779

Summary of allowance for doubtful accounts on trade receivables by geographic area

The information about expected

losses on doubtful a

counts balances by geographic area are as follows:


	12/31/2019		12/31/2018
Brasil		550,928		513,136
México		1,123		621
Uruguai		267		257
Outros países da América Latina		561		1,750
Estados Unidos e Canadá		889		1,394
Europa		7,075		6,842
Outros		49		779

		560,892		524,779

Contractual undiscounted cash outflows

The table below presents a summary of financial liabilities as of December 31, 2019 by the Company and its subsidiaries, listed by maturity. The amounts disclosed in this table are the contractual undiscounted cash outflows, and, therefore, these amounts may be different from the amounts disclosed on the balance sheet.


	In millions of Brazilian Reais
Financial liabilities	Total		Less than 1 year		Between 1 and 3 years		Between 3 and 5 years		More than 5 years
Loans including future contractual interest (1) (2)		17,224.8		1,532.0		5,954.9		4,686.3		5,051.5
Currency and interest rate hedging instruments (3)		588.4		131.1		143.7		129.3		184.3
Trade payables		2,700.1		2,700.1		0		0		0
Leases payable		2,043.8		310.0		904.7		508.7		320.4

(1)

To calculate the estimated interest on loans some macroeconomic assumptions were used, including averaging for the period the following: (i) DI of % 4.40% to 2020, 4.95% to 2021, 5.57% to 2022 and 6.01% to 2023, (ii) exchange rate of the Real against the U.S. dollar of R$ 4,05 in 2020, R$ 4.17 in 2021, R$ 4.33 in 2022, R$ 4.52 in 2023, R$ 4.73 in 2024, R$ 4.93 in 2025, R$ 5.13 in 2026, R$ 5.34 in 2027, R$ 5.56 in 2028 and R$ 5.78 in 2029 (iii) TJLP of 5.57%, (iv)

IGP-M

of 4.18% in 2020, 3.99% in 2021, 3.75% in 2022, 3.58% as from 2023 and (v) IPCA of 3.46% in 2020, 3.45% in 2021, 3.50% in 2022 and 3.25% as from 2023(source:B3, Bulletin Focus and financial institutions).

(2)	Includes estimated interest payments on short-term and long-term loans until the payment date.

(3)

The currency and interest rate hedging instruments were estimated based on projected U.S dollar futures contracts and the futures curves of DI x Pre and Pre x IPCA contracts quoted on B3 on December 28, 2019 and on the futures curve of LIBOR (ICE—IntercontinentalExchange) and

commodities heating oil

contracts and RBOB quoted on

New York Mercantile Exchange

(“NYMEX”) on December 31, 2019. In the table above, only the hedging instruments with negative results at the time of settlement were considered.

Position of hedging instruments

The table below summarizes the position of hedging instruments entered by the Company and its subsidiaries:

Designated as hedge accounting

Product

Hedged object

Rates agreement

Maturity

Notional amount

Fair value

Assets

Liabilities

12/31/2019

12/31/2018

12/31/2019

12/31/2018

R$ million

Foreign exchange swap

Debt

USD + 4.51 %

104.0% DI

nov-23

USD

245.0

USD

245.0

69.3

(10.3

)

Foreign exchange swap

Debt

LIBOR-3M +

1.11% = 4.1%

105.0% DI

jul-23

USD

150.0

USD

150.0

75.0

45.6

Interest rate swap

Debt

4.57% + IPCA

95.8% DI

oct-24

806.1

144.1

35.6

Interest rate swap

Debt

6.47%

100% DI

nov-24

90.0

—

0.6

—

Zero Cost Collar

Operating margin

Put USD 3.68

Call USD 4.60

dec-20

USD

60.0

USD

149.4

(0.1

)

0.3

288.9

71.2

Not designated as hedge accounting

Product

Hedged object

Rates agreement

Maturity

Notional amount

Fair value

Assets

Liabilities

12/31/2019

12/31/2018

12/31/2019

12/31/2018

R$ million

Foreign exchange swap

Debt

USD + 3.60%

65.0% DI

jun-29

USD

853.0

USD

758.3

353.5

246.5

Foreign exchange swap

Debt

LIBOR-3M +

2.0% = 4.3%

105.9% DI

jun-20

USD

60.0

USD

60.0

48.5

38.0

Foreign exchange swap

Firm commitments

USD + 0.00%

39.9% DI

oct-19

USD

17.9

USD

98.5

(2.2

)

(8.6

)

Foreign exchange swap

Operating margin

34.8% DI

USD + 0.00%

feb-20

USD

4.7

USD

8.9

0.6

0.1

NDF

Firm commitments

BRL

USD

jan-20

USD

71.6

—

(1.1

)

—

Term

Firm commitments

BRL

Heating oil / RBOB

jan-20

USD

56.0

—

(1.3

)

—

398.0

276.0

(1)	In million. Currency as indicated.

Foreign Exchange Hedging Instruments Designated as Fair Value Hedge

The foreign exchange hedging instruments designated as fair value hedge are:


In millions, except the DI %	12/31/2019			12/31/2018
Notional amount – US$		395.0			395.0
Result of hedging instruments – gain/(loss) – R$		79.5			149.2
Fair value adjustment of debt – R$		(36.8	)		(28.5	)
Financial expense in the statements of profit or loss – R$		(130.3	)		(215.9	)
Average effective cost – DI %		104.4			104.4

For more information, see Note 16.c.1.

The interest rate hedging instruments designated as fair value hedge are:


In millions, except the DI %	12/31/2019			12/31/2018
Notional amount – R$		806.1			806.1
Result of hedging instruments – gain/(loss) – R$		73.0			25.8
Fair value adjustment of debt – R$		(77.0	)		(13.3	)
Financial expense in the statements of profit or loss – R$		(68.1	)		(50.2	)
Average effective cost – DI %		95.8			95.8

For more information, see Notes 16.g.2, 16.g.4 and 16.g.6.


In millions, except the DI %	12/31/2019			12/31/2018
Notional amount – R$		90.0			—
Result of hedging instruments – gain/(loss) – R$		0.6			—
Fair value adjustment of debt – R$		(0.2	)		—
Financial expense in the statements of profit or loss – R$		(0.4	)		—
Average effective cost – CDI %		99.9			—

Value of gains (losses) recognized

The following tables summarize the value of gains (losses) recognized, which affected the equity of the Company and its subsidiaries:


	2019
	R$ million
	Profit or loss			Equity
a – Exchange rate swaps receivable in U.S. dollars (i) (ii)		230.0			0.0
b – Exchange rate swaps payable in U.S. dollars (ii)		(1.7	)		(0.1	)
c – Interest rate swaps in R$ (iii)		(4.0	)		0
d – Non-derivative financial instruments (iv)		(262.1	)		(349.0	)

Total		(37.8	)		(349.0	)


	2018
	R$ million
	Profit or loss			Equity
a – Exchange rate swaps receivable in U.S. dollars (i) (ii)		181.5			—
b – Exchange rate swaps payable in U.S. dollars (ii)		(3.8	)		0.2
c – Interest rate swaps in R$ (iii)		12.5			—
d – Non-derivative financial instruments (iv)		(134.0	)		(289.6	)

Total		56.2			(289.4	)


	2017
	R$ million
	Profit or loss			Equity
a – Exchange rate swaps receivable in U.S. dollars (i) (ii)		(72.1	)		5.3
b – Exchange rate swaps payable in U.S. dollars (ii)		3.2			—
c – Interest rate swaps in R$ (iii)		15.9			—
d – Non-derivative financial instruments (iv)		(104.2	)		(36.7	)

Total		(157.2	)		(31.4	)

(i)	Does not consider the effect of exchange rate variation of exchange Swaps receivable in U.S. dollars when this effect is offset in the gain or loss of the hedged item (debt/firm commitments);

(ii)	Considers the designation effect of foreign exchange hedging;

(iii)

Considers the designation effect of interest rate hedging in Brazilian Reais; and

(iv)	Considers the results of notes in the foreign market (for further information see Note 16.b).

Fair values and the carrying values of the financial instruments

The fair values and the carrying values of the financial instruments, including currency and interest rate hedging instruments, are stated below:


					12/31/2019				12/31/2018
	Category		Note		Carrying value		Fair value		Carrying value		Fair value
Financial assets:
Cash and cash equivalents
Cash and bank deposits		Measured at amortized cost		4.a		284,992		284,992		205,482		205,482
Financial investments in local currency		Measured at fair value through other comprehensive income		4.a		1,780,939		1,780,939		3,722,308		3,722,308
Financial investments in foreign currency		Measured at fair value through profit or loss		4.a		49,448		49,448		11,161		11,161
Financial investments:
Fixed-income securities and funds in local currency		Measured at fair value through profit or loss		4.b		1,937,967		1,937,967		2,462,018		2,462,018
Fixed-income securities and funds in local currency		Measured at fair value through other comprehensive income		4.b		595,816		595,816		2,208		2,208
Fixed-income securities and funds in local currency		Measured at amortized cost		4.b		76,904		76,904		73,089		73,089
Fixed-income securities and funds in foreign currency		Measured at fair value through other comprehensive income		4.b		303,417		303,417		154,811		154,811
Currency and interest rate hedging and commodities instruments		Measured at fair value through profit or loss		4.b		682,615		682,615		363,329		363,329
Trade Receivables		Measured at amortized cost		5.a		3,689,500		3,663,247		4,150,876		4,111,971
Reseller Financing		Measured at amortized cost		5.b		800,936		839,090		715,530		752,471

Total						10,202,533		10,214,435		11,860,812		11,858,848

Financial liabilities:
Financing		Measured at fair value through profit or loss		16.a		1,666,092		1,666,092		1,567,374		1,567,374
Financing		Measured at amortized cost		16.a		6,008,415		7,268,742		6,889,310		6,840,079
Debentures		Measured at amortized cost		16.a		5,657,339		5,603,669		5,826,242		5,770,979
Debentures		Measured at fair value through profit or loss		16.a		1,030,892		1,030,891		833,213		833,213
Leases payable		Measured at amortized cost		13		1,588,673		1,588,673		46,066		46,066
Commodities, currency and interest rate hedging instruments		Measured at fair value through profit or loss		16		29,985		29,985		43,944		43,944
Trade payable		Measured at amortized cost		17		2,700,071		2,678,808		2,731,677		2,710,352
Subscription warrants – indemnification		Measured at fair value through profit or loss		25		130,657		130,657		123,095		123,095

Total						18,812,123		19,997,517		18,060,921		17,935,102

Summary of the financial assets and financial liabilities measured at fair value

The table below shows the categories of the financial assets and financial liabilities:


	Category		Note		12/31/2019		Level 1		Level 2
Financial assets:
Cash equivalents
Cash and banks		Measured at amortized cost		4.a		284,992		284,992		—
Financial investments in local currency		Measured at fair value through other comprehensive income		4.a		1,780,939		—		1,780,939
Financial investments in foreign currency		Measured at fair value through profit or loss		4.a		49,448		49,448		—
Financial investments:
Fixed-income securities and funds in local currency		Measured at fair value through profit or loss		4.b		1,937,967		1,937,967		—
Fixed-income securities and funds in local currency		Measured at fair value through other comprehensive income		4.b		595,816		—		595,816
Fixed-income securities and funds in local currency		Measured at amortized cost		4.b		76,904		—		76,904
Fixed-income securities and funds in foreign currency		Measured at fair value through other comprehensive income		4.b		303,417		18,985		284,432
Currency and interest rate hedging instruments		Measured at fair value through profit or loss		4.b		682,615		—		682,615
Trade Receivables		Measured at amortized cost		5.a		3,663,247		—		3,663,247

Reseller Financing		Measured at amortized cost		5.b		839,090		—		839,090

Total						10,214,435		2,291,392		7,923,043

Financial liabilities:
Financing		Measured at fair value through profit or loss		16		1,666,092		—		1,666,092
Financing		Measured at amortized cost		16		7,268,742		4,587,932		2,680,810
Debentures		Measured at amortized cost		16		5,603,669		—		5,603,669
Debentures		Measured at fair value through profit or loss		16		1,030,891		—		1,030,891
Leases payable		Measured at amortized cost		13		1,588,673		—		1,588,673
Currency and interest rate hedging instruments		Measured at fair value through profit or loss		16		29,985		—		29,985
Trade payables		Measured at amortized cost		17		2,678,808		—		2,678,808

Subscription warrants – indemnification (1)		Measured at fair value through profit or loss		25		130,657		—		130,657

Total						19,997,517		4,587,932		15,409,585


	Category		Note		12/31/2019		Level 1		Level 2
Financial assets:
Cash equivalents
Cash and banks		Measured at amortized cost		4.a		205,482		205,482		—
Financial investments in local currency		Measured at fair value through other comprehensive income		4.a		3,722,308		—		3,722,308
Financial investments in foreign currency		Measured at fair value through profit or loss		4.a		11,161		11,161		—
Financial investments:
Fixed-income securities and funds in local currency		Measured at fair value through profit or loss		4.b		2,462,018		2,462,018		—
Fixed-income securities and funds in local currency		Measured at fair value through other comprehensive income		4.b		2,208		—		2,208
Fixed-income securities and funds in local currency		Measured at amortized cost		4.b		73,089		—		73,089
Fixed-income securities and funds in foreign currency		Measured at fair value through other comprehensive income		4.b		154,811		1,666		153,145
Currency and interest rate hedging instruments		Measured at fair value through profit or loss		4.b		363,329		—		363,329
Trade Receivables		Measured at amortized cost		5.a		4,111,971		—		4,111,971
Reseller Financing		Measured at amortized cost		5.b		752,471		—		752,471

Total						11,858,848		2,680,327		9,178,521

Financial liabilities:
Financing		Measured at fair value through profit or loss		16.a		1,567,374		—		1,567,374
Financing		Measured at amortized cost		16.a		6,840,079		2,841,436		3,998,643
Debentures		Measured at amortized cost		16.a		5,770,979		—		5,770,979
Debentures		Measured at fair value through profit or loss		16.a		833,213		—		833,213
Leases payable		Measured at amortized cost		13		46,066		—		46,066
Currency and interest rate hedging instruments		Measured at fair value through profit or loss		16.a		43,944		—		43,944
Trade payables		Measured at amortized cost		17		2,710,352		—		2,710,352

Subscription warrants – indemnification (1)		Measured at fair value through profit or loss		25		123,095		—		123,095

Total						17,935,102		2.841.436		15,093,666

(1)	Refers to subscription warrants issued by the Company in the Extrafarma acquisition.

The fair value of trade receivables and trade payables are classified as level 2.

Changes in exchange rate


12/31/2019	Risk		Scenario I Likely			Scenario II			Scenario III
Currency swaps receivable in U.S. dollars
(1) U.S. Dollar / Real swaps		Dollar		700,499			1,668,202			2,635,905
(2) Debts/firm commitments in dollars		appreciation		(700,465	)		(1,668,031	)		(2,635,596	)

(1)+(2)		Net effect		34			172			309

Currency swaps payable in U.S. dollars
(3) Real / U.S. Dollar swaps		Dollar		376			62,559			124,742
(4) Gross margin of Oxiteno		devaluation		(376	)		(62,559	)		(124,742	)

(3)+(4)		Net effect		0			0			0

Options
(5) Options Real / U.S. Dollar swaps		Dollar		0			42,101			102,917
(6) Gross margin of Oxiteno		devaluation		0			(42,101	)		(102,917	)

(5)+(6)		Net effect		0			0			0


12/31/2018	Risk		Scenario I Likely			Scenario II			Scenario III
Currency swaps receivable in U.S. dollars
(1) U.S. Dollar / Real swaps		Dollar		372,022			1,039,669			1,707,316
(2) Debts/firm commitments in dollars		appreciation		(372,019	)		(1,039,661	)		(1,707,303	)

(1)+(2)		Net effect		3			8			13

Currency swaps payable in U.S. dollars
(3) Real / U.S. Dollar swaps		Dollar		(65	)		8,545			17,154
(4) Gross margin of Oxiteno		devaluation		65			(8,545	)		(17,154	)

(3)+(4)		Net effect		—			—			—

Options
(5) Options Real / U.S. Dollar swaps		Dollar		—			97,938			244,572
(6) Gross margin of Oxiteno		devaluation		—			(97,938	)		(244,572	)

(5)+(6)		Net effect		—			—			—

Summary of variation of derivative instruments hedging object


12/31/2019	Risk		Scenario I Likely			Scenario II			Scenario III
NDF Commodities
(1) NDF of Commodities		Decrease in		100,542			1,490,893			2,881,245
(2) Gross margin from Ipiranga		Commodities Price		(100,542	)		(1,490,893	)		(2,881,245	)

(1) + (2)		Net effect		0			0			0