Cash and cash equivalents, financial investments and derivative financial instruments

12 Months Ended

Dec. 31, 2022

Cash and cash equivalents, financial investments and derivative financial instruments

Cash and cash equivalents, financial investments and derivative financial instruments

5 Cash and cash equivalents, financial investments and derivative financial instruments

Cash equivalents and financial investments, excluding cash and bank deposits, are substantially represented by investments: (i) in Brazil, in certificates of deposit of financial institutions linked to interest rate of the DI, in repurchase agreement, financial bills, and in short-term investment funds, whose portfolio is comprised of Brazilian Federal Government bonds and certificates of deposit of financial institutions; (ii) outside Brazil, in certificates of deposit of financial institutions and in short-term investment funds, whose portfolio is comprised of Federal Government bonds; and (iii) in currency and interest rate hedging instruments.

The financial assets were classified based on business model of financial assets of the Company and its subsidiaries and are disclosed in Note 31.i.

The breakdown of cash and cash equivalents and financial investments is as follows:

a. Cash and cash equivalents

Cash and cash equivalents of the Company and its subsidiaries are presented as follows:

	12/31/2022	12/31/2021
Cash and bank deposits
In local currency	105,986	317,907
In foreign currency	5,811	16,640
Financial investments
In local currency
Fixed-income securities	5,204,766	1,943,164
In foreign currency
Fixed-income securities	305,206	2,363
Total cash and cash equivalents	5,621,769	2,280,074

b. Financial investments and derivative financial instruments

The financial investments that are not classified as cash and cash equivalents are presented as follows:

	12/31/2022	12/31/2021
Financial investments
In local currency
Fixed-income securities and funds	406,683	1,607,608
In foreign currency
Fixed-income securities and funds	-	103,239
Derivative financial instruments (a)	556,510	472,552
Total financial investments and derivative financial instruments	963,193	2,183,399
Current	520,352	1,804,122
Non-current	442,841	379,277

(a) Accumulated gains, net of income tax (see Note 31.i).