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CORONAVIRUS

CRISIS MANAGEMENT

Crisis management processes aim to preserve the longevity and business reputation with the least possible impacts on the company's value through structured standards that support the definition of the applicable measures.

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Protection

of health

  • Analyze, define and implement initiatives to preserve the physical and mental health of the team, ensuring maintenance of productivity.

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Steering Committee

Assessment

  • Impacts on the economy;

  • Market impacts;

  • Projections / evolution of the market situation;

  • Definition of tools and indicators for monitoring the crisis;

  • Adherence to the measures made available for immediate implementation.

COMPANY VALUE PROTECTION

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Adaptation

Definition of necessary measures to adapt the business model and maintain the operation during the crisis period:

  • Definition of operational priorities;

  • Definition of strategic priorities;

  • Activation of contingency plans;

  • Implementation of immediate measures;

  • Identification of opportunities

  • Development of a new business model, considering the needs and priorities of the market;

  • Definition of new strategies;

  • Update of short, medium and long term plans.

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Monitoring

  • Crisis monitoring with projections of impact and duration;

  • Constant updating of the company's projections;

  • Monitoring through key indicators.

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Protection

from Caixa

Optimization of financial resources involving:

Forecasting and tracking tools:

  • Definition of tools for monitoring, monitoring and financial forecasting;

  • Continuous analysis of viability in the short, medium and long term.

We are a family owned and operated business.

Action plan:

  • Definition of actions to preserve internal cash;

  • Definition of actions to generate cash externally;

  • Analysis of available credit lines;

  • Generation of short and medium term liquidity.

We are a family owned and operated business.

Cash Committee:

  • Definition of the managers responsible for the analysis and deliberation of strategic-financial priorities;

  • Implementation of the contingency plan.

Main economic measures of an economic nature announced in Brazil

Recognition of state of public calamity with effect until December 31, 2020
(Presidency of the Republic | Message to Congress No. 93, of March 18, 2020).

Updated on 05/26/2020

BNDES - WORKING CAPITAL

  • R $ 5 billion for the granting of working capital credit to companies with revenues of up to R $ 300 million / year through transfers via financial agents

- Financing Limit: up to R $ 70 million

- Operation Cost: Average of 1.03% per month (13.06% per year).

- Payment Term: Up to 60 months, with a grace period of up to 24 months.

- Guarantees: negotiated between the transferring bank and the client. The Investment Guarantee Fund (FGI) can be used.

  • R $ 19 billion - 6-month standstill for direct operations with BNDES

  • R $ 11 billion - 6-month standstill for indirect operations through transfer via financial agents

  • R $ 20 billion - transfer funds from PIS / PASEP to FGTS

  • Simplification of the requirements for contracting credit and dispensing with documentation (CND) for credit renegotiation (Central Bank | Resolution No. 4782, of March 16, 2020).

PROGER URBANO WORKING CAPITAL

  • R $ 1 billion for the granting of PROGER / FAT credit to Micro and Small Companies with revenues of up to R $ 10 million / year through accredited banks (Ministry of Economy / Deliberative Council of the Fund for the Support of Workers I Resolution nº 850, of March 18, 2020).

  • Simplification of the requirements for contracting credit and dispensing with documentation (CND) for credit renegotiation (Central Bank | Resolution No. 4782, of March 16, 2020).

NATIONAL PROGRAM TO SUPPORT MICRO ENTERPRISES AND SMALL COMPANIES - PRONAMPE.

Law No. 13,999, of May 18, 2020

Eligible companies:

  • Microenterprises (ME), with annual sales of up to R $ 360 thousand.

  • Small businesses (EPP), with revenues between R $ 360 thousand and R $ 4.8 million per year.

Line value:

  • R $ 15,900,000,000.00

  • Line validity: up to 3 (three) months after the entry into force of this Law, extendable for another 3 (three) months.

Financial Institution:

  • Financial institutions subject to the supervision of the Central Bank of Brazil.

Financing Amount: up to 30% of your revenue in 2019, with the following limits:

  • R $ 108 thousand for microenterprises.

  • R $ 1.4 million for small businesses.

  • If the company is less than a year old, however, the maximum loan amount will be up to 50% of its share capital or, if it is more advantageous, up to 30% of the average of its monthly income calculated since the beginning of its activities.

Payment conditions:

  • Interest rate: SELIC 3% pa + 1.25% pa

  • Payment term: 36 months.

  • Grace Period: It will be the responsibility of the financial agent to grant or not a grace period.

Guarantee:

  • Personal guarantee of the applicant in an amount equal to the contracted loan, plus charges, except in the case of companies incorporated and in operation for less than 1 (one) year, whose personal guarantee may reach up to 150% (one hundred and fifty percent) of the value contracted, plus additions.

Obligation:

  • All borrowers of this credit line must maintain the same number or more employees as there was in the publication of the Law (18 May 2020). If the employer provides untrue information about the number of employees, it will imply the early maturity of the debt by the financial institution.

Observations: The company cannot have been condemned for having working conditions similar to slavery or child labor.

EMERGENCY EMPLOYMENT SUPPORT PROGRAM: FINANCING THE PAYROLL

Provisional Measure No. 944, of April 3, 2020

  • Eligible companies: annual gross revenue greater than R $ 360,000.00 and equal to or less than R $ 10,000,000.00 (ten million reais), calculated based on the year of 2019.

  • Line value: R $ 34,000,000,000.00.

  • Line validity: until June 30, 2020.

  • Purpose: totality of the contractor's payroll, for a period of two months, limited to the amount equivalent to up to twice the minimum wage per employee.

  • Financial Institutions: financial institutions subject to the supervision of the Central Bank of Brazil.

Payment conditions:

  • Interest rate: 0.31% per month (3.75% per year).

  • Payment term: 36 months.

  • Grace period: 6 months to start the payment, with interest capitalization during this period.

  • Obligation: The company undertakes not to terminate, without just cause, the employment contract of its employees in the period between the date of contracting the credit line and the sixtieth day after receiving the last installment of the credit line.

  • Concession criteria: participating financial institutions will observe their own credit policies and may consider possible restrictions on credit protection systems on the date of contracting.

BANK CREDIT

  • Febraban: Banco do Brasil, Itaú, Unibanco, Bradesco, Santander and Caixa Econômica will comply with requests to extend the maturity of debts by 60 days for individuals and non-performing micro and small companies.

We are a family owned and operated business.

  • Federal Savings Bank
    Reduction of interest rates and extension of credit terms
    Release of R $ 75 billion in credit, of which:
    - R $ 40 billion for working capital, mainly for companies in the real estate sector and small and medium-sized companies.
    - R $ 5 billion for agricultural credit.
    - R $ 30 billion for the purchase of payroll-deductible loan portfolios and vehicle financing held by medium-sized banks, in case these financial institutions have difficulties.

  • Bank of Brazil
    Release of R $ 100 billion in credit on existing lines.
    R $ 48 billion for companies.
    R $ 25 billion for agribusiness.
    R $ 24 billion for individuals.
    R $ 3 billion for municipal and state public administrations.

EXTENSION/

TAX REDUCTION

  • Federal Taxes: Extension of 90 days of competencies March and April / 2020 (Ministry of Economy | Ordinance No. 139, of April 3, 2020, amended by Ordinance No. 150, of April 8, 2020).

- Contributions from PIS / Pasep and Cofins.

- INSS employer contribution.

- CPRB - Social Security Contribution on Gross Revenue.

- Funrural.

  • Simple national:

- Federal taxes on payment by Simples Nacional (PIS, Cofins, IPI, IRPJ, CSLL and CPP): Extension of 180 days on the date for payment of SIMPLES federal taxes on the competences from March to May / 20 (CGSN Resolution 152, of 18 March 2020).

- State tax (ICMS) and Municipal tax (ISSQN): Extension of 90 days on the date for payment of SIMPLES federal taxes from March to May / 20 (CGSN Resolution No. 154, of April 3, 2020).

  • Deferral / Postponement of FGTS payment from March to May for 3 months and payment in 6 installments (Provisional Measure No. 927, of March 22, 2020 I Caixa Econômica Federal Circular No. 893, of March 24, 2020).

  • 50% reduction in contributions from Sistema S for 3 months: April, May and June / 2020 (Provisional Measure No. 932, of March 31, 2020). Note: the reduction does not apply to contributions to INCRA and Salário-Educação.

  • IOF: In credit operations contracted between April 3, 2020 and July 3, 2020, IOF rates are reduced to zero.

  • Extension of 90 days in the validity of the Debt Clearance Certificates related to Federal Tax Credits and the Active Debt of the Union (CND) and Positive Certificates with Debt Negative Effects related to the Federal Tax Credits and the Active Debt of the Union (CPEND). (Joint Ordinance No. 555, of March 23, 2020).

  • Installment payment before the Special Secretariat of the Federal Revenue of Brazil - RFB and the Attorney General of the National Treasury - PGFN (Ministry of Economy | Ordinance ME / GM nº 201, of May 11, 2020).

Extension of the maturity of installment payments made before the RFB - Special Secretariat of the Federal Revenue of Brazil - and by PGFN - Attorney General of the National Treasury.

I. The installments due in May 2020 (05/29/2020) to August 2020 (08/31/2020).

II. The installments maturing in June 2020 (6/30/2020) to October 2020 (10/30/2020).

III. The installments maturing in July 2020 (7/31/2020) to December 2020 (12/30/2020).

Additional information:

- Said extension will not exclude the incidence of interest and is intended only for the installments that expire after the publication of the Ordinance (05/12/2020).

- Refunds or compensation of amounts already collected will not be allowed.

- The extension does not apply to installments of taxes calculated in the form of the Special Unified Collection System of Taxes and Contributions for Micro and Small Enterprises (Simples Nacional).

TAX DEBTS

  • Suspension, extension and postponement of acts of collection of the Union's active debt for 90 days (Ministry of Economy | Ordinance No. 103, of March 17, 2020).

I. Suspension of deadlines for taxpayers to submit administrative challenges in the scope of collection procedures.
II. Suspension of the introduction of new collection procedures.
III. Suspension of forwarding of CDAs - Active Debt Certificates to protest offices.
IV. Suspension of the establishment of procedures for the exclusion of overdue installments.

  • Conditions for an extraordinary transaction in the collection of the Union's active debt (PGFN | Ordinance No. 9,924, of April 14, 2020)

I. Payment of entry corresponding to 1% (one percent) of the total amount of debts to be transacted, divided into up to 3 (three) equal and successive installments;

II. Installment of the remainder in up to 81 (eighty-one) months, being up to 142 (one hundred and forty-two) months in the hypothesis of a natural person taxpayer, individual entrepreneur, micro-company or small business;

III. Deferment of the payment of the first installment of the installment referred to in the previous item to the last business day of the month of June 2020.

Obs .: In the case of social security debts (item "a" of item I and item II of the caput of article 195 of the Constitution), the term will be up to 60 (sixty) months.

Note: Does not cover FGTS, Simples Nacional debts and criminal fines

Deadline for accession: June 30, 2020

  • Suspension of procedural terms before the Federal Revenue of Brasi until 05/29/2020 and different collection procedures (Ordinance RFB nº 543, of March 20, 2020, art. 6 and 7)

PRESERVATION OF JOBS

Provisional Measure No. 927, of March 22, 2020.

  • Telecommuting (home office).

  • Anticipation of individual vacations.

  • Collective vacation decree.

  • Bank of hours.

  • Anticipation of non-religious holidays.

WORKING RELATIONSHIPS

Provisional Measure No. 9236, of April 1, 2020

Reduction of working hours and wages

  • Maximum term: 90 days

  • Reduction parameters: 25%, 50% or 70%

  • Conditions for closing the reduction:

I - the cessation of the state of public calamity;

II - the date established in the individual agreement as the end of the period and reduction agreed upon; or

III - the date of communication from the employer informing the employee of his decision to bring forward the end of the agreed reduction period.

Temporary suspension of the employment contract

  • Maximum term: 60 sixty days

  • Application: integral or fractionated in up to two periods of 30 days

  • Form of agreement: individual written agreement between employer and employee, which will be sent to the employee at least 2 calendar days in advance.

  • Employee rights:

I - will be entitled to all benefits granted by the employer to its employees;

II - will be authorized to pay to the General Social Security System as an optional insured.

Conditions for closing the suspension of the employment contract:

I - the cessation of the state of public calamity;

II - the date established in the individual agreement as the end of the period and suspension agreed upon; or

III - the date of communication from the employer informing the employee of his decision to bring forward the end of the agreed suspension period.

  • Companies with revenues greater than R $ 4,800,000.00 in 2019: must pay monthly compensatory aid in the amount corresponding to 30% of the salary amount.

Provisional employment guarantee

  • I - during the agreed period of workday and salary reduction or temporary suspension of the employment contract; and

  • II - after the re-establishment of the working day and salary or the end of the temporary suspension of the employment contract, for a period equivalent to that agreed for the reduction or suspension.

Conditions for implementation:

  • Through individual agreement or collective bargaining: employees with a salary equal to or less than R $ 3,135.00 or holders of a higher education diploma and who perceive a monthly salary equal to or greater than twice the maximum benefit limit of the General Social Security System Social (R $ 12,202.12).

  • By convention or collective agreement: For other employees, except for a 25% reduction in working hours and wages, which may be agreed upon by individual agreement.

Emergency Employee Benefit

  • The worker will receive an Emergency Benefit that will be paid within thirty days from the date of conclusion of the agreement. The amount of the benefit will be based on the calculation of the monthly amount of unemployment insurance to which the employee would be entitled under the terms of art. 5 of Law No. 7,998, of 1990.

  • In the reduction of working hours and wages: it will be calculated by applying the percentage of the reduction (25%, 50%, 70%) to the calculation basis.

  • In the temporary suspension of the employment contract, it will have monthly value:

- Companies with revenues below R $ 4,800,000.00 in calendar year 2019: amount equivalent to one hundred percent of the value of unemployment insurance to which the employee would be entitled.

- Companies with revenues greater than R $ 4,800,000.00 in calendar year 2019: amount equivalent to seventy percent of the unemployment insurance to which the employee would be entitled, as the company will pay monthly compensatory aid in the amount corresponding to 30% of the wage amount.

Additional information

  • In the case of collective bargaining, approved in virtual assemblies by the unions of the category, the suspension with supplementary income will apply to all employees of the company.

  • The employer must inform the Ministry of Economy about the reduction of the working day and salary or the temporary suspension of the employment contract, within ten days, counted from the date of the conclusion of the agreement.

  • The form of transmission of this information and communications, as well as more details of the payment of the Emergency Benefit, will be regulated by the Ministry of Economy.

  • The unfair dismissal that occurs during the period of provisional guarantee in employment will subject the employer to payment, in addition to the severance installments provided for in the legislation in force, indemnity in the amount of:

- Salary reduction of 25 to 50%: Payment of 50% of the salary that the employee would initially be entitled to;

- Salary reduction of 50 to 60%: Payment of 75% of the salary that the employee would initially be entitled to;

- Salary reduction greater than 70% or suspension: Payment of 100% of the salary that the employee would initially be entitled to.

  • The employee does not need to apply for unemployment insurance. The government will automatically deposit the amount into the worker's account as soon as it is notified of the deal.

LABOR RELATIONS: REMOVAL

Law No. 13,982, of April 2020

  • The company will not bear the cost of the first fifteen days of leave in the case of illness proven to result from contamination by the coronavirus (Covid-19).

  • The company may deduct from the transfer of contributions to social security the amount of these fifteen days of leave until the maximum limit of the contribution salary to RGPS, currently at R $ 6,101.06.

IMPORT

  • Facilitate the clearance of imported industrial raw materials and inputs before landing.

  • IPI at zero rate on imports of medical products until September 30, 2020.

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