TIM(US:TIMB)2022-04-14 23:13Economic Conditions - The weak domestic economy is expected to adversely affect the company's results of operations, cash flows, and financial condition due to reduced consumer purchasing power [173]. - Economic instability in Brazil, including rising interest rates and unemployment, may limit credit availability and consumer purchasing power, adversely affecting demand for the company's products [174]. - Developments in other countries can negatively impact the Brazilian economy and the market value of Brazilian issuers' securities, including the company's [179]. Inflation and Currency Risks - 46% of the company's current indebtedness is denominated in foreign currency (USD), while 54% is linked to inflation (IPCA) and all are subject to cross currency swaps tied to Brazilian floating interest rates [172]. - Inflation adjustments on certain assets and liabilities may lead to decreased disposable income for families, negatively impacting demand for the company's products and services [174]. - The company is exposed to foreign exchange risk due to substantial dollar-denominated expenditures for imported components, equipment, and handsets [172]. Market Volatility - The ongoing COVID-19 pandemic and geopolitical tensions, such as the conflict between Russia and Ukraine, have contributed to market volatility and uncertainty in the Brazilian economy [178]. - The company faces risks from volatility in global financial markets, which may affect its financial condition and results of operations [175]. - The military conflict between Russia and Ukraine is contributing to increased prices of energy, oil, and other commodities, further impacting financial market volatility [181]. - The company may face challenges in accessing capital markets due to adverse effects on investor interest in Brazilian assets [178].