Foreign Currency Exposure - As of December 31, 2022, R$3,975 million, or 37.57% of the company's outstanding indebtedness, was denominated in foreign currencies, entirely in U.S. dollars[1017]. - In a 'probable' scenario, the company may find relief of R$97 million from foreign exchange fluctuations, while in an 'adverse' scenario, exposed liabilities could increase by R$637 million[1019]. - The company uses derivative financial instruments to hedge against foreign exchange risks, with a notional amount of US$750 million in contracts[1023]. Inflation Exposure - The company has a net exposure to inflation of R$1,069 million as of December 31, 2022, with total assets indexed to inflation at R$4,357 million and liabilities at R$5,426 million[1028]. Interest Rate Exposure - The company’s net assets exposed to interest rate fluctuations are R$2,142 million, with a probable scenario indicating a net effect of R$268 million from interest rate changes[1027]. - The company estimates that in a probable scenario, the Selic rate will be 12.50% and the TJLP rate will be 7.20% on December 31, 2023[1026]. Liquidity Management - The total cash equivalents and marketable securities amount to R$3,223 million, with cash equivalents at R$1,345 million and marketable securities at R$1,878 million[1025]. - The company has a total liquidity risk management strategy that includes monitoring cash flow projections monthly over a 12-month period[1032]. - The company has sufficient cash flow to cover its operating activities and manages liquidity risk through a structured investment policy[1031]. Financial Obligations - The company’s total financial obligations, including loans and debentures, amount to R$16,875 million, with R$12,892 million due within five years[1036].
CEMIG(CIG_C) - 2022 Q4 - Annual Report