Management Reports • Mar 20, 2020
Management Reports
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Jorge Manuel Coutinho Franco da Quinta – Chairman António José da Cruz Espinheira Rio – Vice Chairman Alírio Ferreira dos Santos – Secretary João António Ferreira de Araújo Sequeira - Secretary
José Reis da Silva Ramos – Chairman & CEO Maria Angelina Martins Caetano Ramos – Member Salvador Acácio Martins Caetano – Member Miguel Pedro Caetano Ramos – Member Matthew Peter Harrison -Member Katsutoshi Nishimoto - Member Rui Manuel Machado de Noronha Mendes – Member Masaru Shimada - Alternate
José Domingos da Silva Fernandes - Chairman Alberto Luis Lema Mandim – Member Daniel Broekhuizen – Member Maria Lívia Fernandes Alves – Alternate Akito Takami - Alternate
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. represented by José Miguel Dantas Maio Marques or António Joaquim Brochado Correia Joaquim Miguel de Azevedo Barroso - Alternate
After a year of strong growth, 2019 would certainly be full of challenges. Indeed, to keep the substantial progress on all fronts requires commitment, innovation and a continuous adaptation to the market cycles. I am always pleased to testify that, year after year, we embrace those challenges, actively searching new opportunities and the constant assertation of the brands Toyota and Lexus in Portugal.
The market is increasingly demanding and our capacity of being one step ahead is constantly tested. For several years, we have a Customer better informed than ever. We have a Customer who comes to us with a deep knowledge of models, characteristics, prices, advantages and disadvantages of each car or service. We have the most challenging Customer ever, for those buying a car, a commercial or even a forklift, it's no longer the most obvious step, forcing us to rethink business models and to test new solutions of mobility which respond to their current needs. It's because of him, that we work daily to build solid relationships and trust, which add value to all the steps of a commercial relationship. It's for him that we continue to create new mobility solutions, digital ones that are appropriate for the new patterns of consumption.
2019 was a year of political consistency and relative socio-economic stability, while keeping the trust levels of Portuguese citizens similar in relation to the 2018. However, in a volatile and changing world, it's necessary be aware. The maintenance of macroeconomics stability is essential to preserve trust in Portugal and its citizens. The lack of a financial system pact to avoid instability in the sector, as well as the lack of alignment of the financial and environmental policies are issues which we care about. It is urgent to keep starting constructive discussions to help the automobile sector growth, avoiding an increase in taxes and incentivizing the purchase of cleaner environmental friendly vehicles, extending even to other energy-efficient solutions, like hybrids, which started the line of sustainable mobility.
If we speak about environment, we speak about Toyota. Historically, the brand has been pioneering and it always took international environmental protocols seriously, which aim at reducing the emissions of greenhouse gases, in a context of sustainable development.
It has been able to be on the front line for many years, thanks to those concerns and thanks to the interpretation of the market signals, by anticipating them. The investment in an electrical car range has become winner and responsible for society changes. Since 2014, the brand is leading in the electrical car sales. Toyota sold in 2019, in Portugal, 6593 hybrids vehicles, in a total of 9645 passenger cars. This increase of 12.4% versus 2018 comes to confirm the Toyota's leadership and vanguard.
Toyota is also a pioneer of hydrogen technology. In the past 20 years, it has done successive tests, under demanding conditions. Toyota Mirai was the first sedan car with a fuel cell of serial production in the world and it should reach to the Portuguese market in 2021.
In the urban mobility area, 2019 was also defined by the launch of the H2. City Gold, the new electrical bus with Toyota's fuel cell system, which resulted from a partnership between CaetanoBus – Grupo Salvador Caetano's company – and Toyota Motor Europe. This vehicle uses the same Toyota Mirai's fuel cell, as a step closer to hydrogen society, but this time in urban transports.
The Toyota's efforts for a decarbonized society are evident. It's the case of the Environmental Challenge 2050, which establishes numerous goals to cover the most significant environmental impacts of the brand. Toyota Caetano Portugal also bought green certified electricity from its supplier, contributing to the global goal of the brand in Europe. Another example of success is One Toyota, One Tree program, which counts, since 2005, more than 155 000 trees in Portugal.
Continuing to import Toyota's best practices, 2019 was the year in which we continued to implement BRiT – Best Retailer in Town. All the dealer network was involved in this process which is, more than a program of improvement of our services, a philosophy and a way of being Toyota, with the focus on Co-workers, who are our main ambassadors, and in the Customer, being the center of everything. It is because of him that we work every day, with the prospect of keeping him dazzled. This is also an extension of Toyota Way and a reaffirmation of sustainability of business as a fundamental principle. Our leaders play a key role here, because only a strong, well-established and with the focus on People leadership will allow us to go further beyond.
In terms of the automobile market, this year was more demanding than 2018. The ACAP's - Associação do Comércio Automóvel de Portugal – report stated a drop of 3.9% in passenger car sales in the national market, as well as a decrease in new car registrations. Toyota and Lexus weren't an exception.
Regarding Toyota's commercial activity, 11 166 vehicles have been marketed. In terms of Lexus, 509 vehicles have been sold.
Concerning industrial activity, in 2019, 2393 units of Toyota Land Cruiser 70 were produced. This model, 100% intended to export to South Africa's market, has been a won bet, with a sustainable growth, year after year. In addition, this year a partnership between Toyota Caetano Portugal and CaetanoBus was also signed, Grupo Salvador Caetano's company, to produce chassis to electrical and hydrogen buses.
Concerning Industrial Equipment, North and South Divisions introduced 1083 units in the market, among forklift, counterbalance and warehouse equipment.
With so many challenges we cannot forget the external recognition of the work that is being done. Toyota was judged 5 stars' brand for 2020 in Portugal, which can give greater inspiration on the path to the daily improvement of our work of the brand representation.
And like in every other moment of balance, we must thank our Co-workers, Customers and partners, who represent our brands with the love and passion of whom does of them the face of proximity and trust.
(President & CEO Toyota Caetano Portugal)
According to the provisions of Article 245(1)(a) of the Securities Code, we have prepared the management report and the profit application proposal presented below, as well as the corresponding Notes, in compliance with the provisions of Article 447 of the Commercial Companies Code. For each of the Companies included in Toyota Caetano Portugal's scope of consolidation, a list of the main events that occurred during the period under review and their impact on the financial statements will be presented.
This management report could not be disclosed without mentioning that is was elaborated in a moment prefacing the most recent events related with WHO's (World Health Organization) declaration of COVID-19 pandemic.
So being, most of the perspectives presented in this report are outdated, as they were defined in a moment where a normal 2020 economic cycle was forecasted.
The real impact of this problematic situation cannot yet be clearly seen/quantified but for sure it will bring strong negative economic consequences to the whole world and of course to all our activities.
However our expectations in overcoming this inevitable crisis, rely in the confidence given by more than 70 years of a well succeeded history always based in wise decisions along with the usual effort and strong dedication of all our co-workers.
A strong balance along with a solid raised credibility near all our business partners, give us the certainty of a natural recovery in a troubled future.
In 2019, Ovar Plant produced a total of 2.393 vehicles of Land Cruiser 70's model in its main activity of vehicle assembly. Despite the verified breach in the 2nd semester, the final amount exceeded the Budget's expectation, with a growth of 12% and confirmed the trend of growth since the beginning of the project (2015).
In 2019 was made a compaction of LC70's logistics process, through the reorganization of material storage and flow redefinition for the production. This operation permitted to release approximately 4.000 m2 to allocate new projects.
The 2nd Semester was marked by the participation in the assembling of the Fuel Cell Bus'1st prototype together with CaetanoBus and Toyota Motor Europe, whose presentation was made at the biggest buses' world fair, Busworld Brussels 2019.
In PPO/PDI activity, 5.577 units were transform/prepared, an increase of 48% confronting the same period of the last year. It should be noted that 2019, was the 1st full year of management of the new and used car parking by Ovar Plant, being this the main reason to the increase.
| Production | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|
| Toyota's Physical Units | 2.393 | 2.114 | 1.913 | 1.823 | 1.629 |
| Transformed/prepared Physical Units |
5.577 | 3.776 | 3.469 | 3.773 | 4.353 |
| Co-workers Total | 197 | 194 | 177 | 186 | 206 |
We still emphasize the following events occurred during 2019:
Participation in "Exo-Suit Trial", project headed by TME (Toyota Motor Europe) with the goal of improve ergonomically the workplaces;
Participation in 30th QCC World Convention in Japan, with the winning team of QCC Local Convention;
Successful completion of the audit process 1st and 2nd Phase, certifying our Health and Safety Management System at Work, according to the rule ISO45001:2018;
Host company of Face to Face of Ergonomic, headed by TME;
Celebration of Co-worker's Day, with dynamic activities to fortify team spirit.
In 2020 we expect, once again, an increase on the production volumes of LC70's Activity (2 563 units), as well as the operationalization on the field of some projects in progress.
2019 broke the rising trend verified in the previous years, with the total market declining 2%.
Passenger and commercial vehicles registered a drop of 2.0 % and 2.1% respectively when compared to 2018.
Highlighting, as evidence elements of market performance:
In 2019, Toyota presented total sales of 11.166 units, leading to a drop of 6% where compared with the last year.
These sales result in a quota of 4.3% of the total market in 2019 (-0,2 p.p. vs. 2018):
(1) In Passenger Cars, Toyota present a breach of 4%, with a quota of 4.3% (-0,1p.p. vs 2018).
These results are due to the negative impact of Auri's volume flow in the first months of the year, replaced by the new Corolla, as well as the discontinuation of Diesel motorization (Toyota was the first Brand to abandon the Diesel vehicles in passenger cars) which has been presenting a substantial breach in a search, with meaning in business sector.
The upside, it continues to get a strong performance of hybrid vehicles which registered a growth of +12.3% versus 2018, it represented approximately 60% of passenger cars sales, being Toyota the brand with the biggest volume of electrical vehicles sales.
Toyota Evolution: 2018 vs 2019
(2) In Light Commercial Vehicles, Toyota presents a drop of 19%, with a market quota of 4.0% (-0.8 p.p. vs 2018).
The majority of this decrease is justified by the discontinuation of Diesel models derived from tourism – Yaris Bizz and Auris Bizz, as well as smaller volume of public sales.
It should be noted the strong competitive pressure felt in B (commercial vehicles) & C (small family vehicles) Segments caused by aggressive promotional campaigns throughout the year.
For 2020, the defined priorities and global goals are:
Capitalize the most representative models in terms of sales – Yaris, Corolla, RAV4 and C-HR – in the case of Yaris, supported by the release of the New Model forecasted for the 2nd semester, and, the RAV4 highlighting the release of the new Hybrid Plug-in motorization, which will have differentiator arguments, especially in business market;
Continue to invest in appearance and value of the brand through the innovative Hybrid technology;
Continue to optimize the commercial range, with the important release of the new Proace City model, part of the biggest segment of the commercial vehicles market – Little Van's segment.
The Premium Market registered a positive evolution vs. last year, presenting a growth of 1% and involving a total of 48.029 marketed units.
This growth is justified by the accounting of the Tesla's registrations, previously unknown, since the company started having the Official Brand Representative status by IMT and for that reason their sales started being disclosed by ACAP.
The Premium Market represents approximately 21% of the whole passenger market.
Source: ACAP
In a complex competitive environment, with an intense commercial aggressiveness of competitors in the C-Premium and D-Premium segments, the Lexus brand, which is composed by hybrid vehicles, interrupted the growth path verified in the last 6 years, presenting a decrease of 9%.
In 2019, Lexus registered 509 license plates, in form of a 1.1% quota in the premium market (- 0.1 p.p.).
Lexus : 2018 vs 2019
Reinforce the innovation position, by leveraging in the large and exclusive offer of hybrid vehicles with an advanced design, taking advantage of general context of the reducing presence of Diesel motorization;
Capitalize the growth of the Dealer Network, launched in 2019, which will count with new sale and assistance points;
Successfully launch the first fully electrical model – UX300e – that by the current tax context will allow the Brand to have unprecedented arguments to approach the business market;
Guarantee the performance consistency of used vehicles sales, in order to increase the brand presence, as well as the chain of associated value to this activity.
In 2019, there was again a growth of 11% in the Toyota and Lexus Hybrids performance versus 2018. Electrical vehicles now represented 70% (+9.3p.p. vs 2018) of Toyota and Lexus passenger cars sales.
This performance was caused by a large and refreshed offer of hybrid vehicles, with a total of 16 models – 7 Toyota and 9 Lexus – and the focus on disclosure and promotion of the benefits of hybrid technology.
Toyota & Lexus Hybrids 2018 vs 2019
Source: ACAP
For 2020, the continuation of hybrid and electrical vehicles sales growth at a quite higher rate than the market's growth is expected.
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According to the tabs published in the last Economic Report Card in December of 2019, the portuguese economy should pursue a growing path of the activity in the next years, albeit slowing down.
| Banco de Portugal's Tabs 2019- 2021 Rate of change, in percent |
|||||||
|---|---|---|---|---|---|---|---|
| BE December 2019 | |||||||
| 2019 | 2020 | 2021 | |||||
| GDP | 2,0 | 1,7 | 1,6 | ||||
| Private Consumption | 2,3 | 2,1 | 1,9 | ||||
| Public Consumption | 0,5 | 0,8 | 0,8 | ||||
| GFCF | 7,3 | 5,4 | 4,8 | ||||
| Domestic Demand | 3,1 | 2,6 | 2,2 | ||||
| Exports | 2,8 | 2,6 | 2,8 | ||||
| Imports | 5,4 | 4,6 | 4,2 | ||||
| HIPC | 0,3 | 0,9 | 1,2 |
Confronting this framework, the Market forecast for 2020 is relatively stable, standing approximately at 260.000 units:
In consideration of this conditions, the goal to 2020 is a growth of 3% compared with 2019, representing 12.065 units, Toyota and Lexus.
During 2019, the global billing Division of After-sales totaled over 38.6 million euros. This amount included "Warranty Extension" and "Full Care" services, whose billing corresponded to 1.7 million euros this year. 3.8 million euros have been billed in parts for warranty.
The commercial activity of parts (genuine & national incorporation), which excludes accessories, warranties and services, totaled an amount of 29.6 million euros. This amount translates into a growth of 4.3% versus 2018, "still" in a context of decrease of operating fleet.
The billing of accessories (which includes merchandising) totaled an amount of 3.4 million euros. This amount is 3.6% under what the billing was in 2018. However, the incorporation of merchandising and accessories for each new vehicle sold presents a growth of 3.1% (295€ in 2019 versus 286€ in 2018).
In 2019 TCAP kept the focus on a customer-oriented (360º) service of excellence, in order to guarantee the development of the after-sales activity.
We emphasize some undertaken initiatives, which contributed to the results of the year:
| MARKET | TOYOTA SALES + BT | |||||||
|---|---|---|---|---|---|---|---|---|
| 18 | 19 | Range | '18 | '19 | Range | |||
| % | QT | Quota | QT | Quota | % | |||
| Forklifts Counterbalanced |
1841 | 1988 | 8% | 302 | 16,4% | 459 | 23,1% | 52,0% |
| Storage equipment |
2818 | 2924 | 4% | 437 | 15,5% | 624 | 21,3% | 42,8% |
| MMC TOTAL | 4659 | 4912 | 5% | 739 | 15,9% | 1083 | 22,0% | 46,5% |
Source : Wits
The market of Cargo-handling Machines registered a growth of 5% in 2019.
Regarding Toyota 1083 requests were made in 2019, which in a total market of 4912 units, corresponds to a market quota of 22%.
In relation to the Counterbalanced Forklifts segment a growth of 52% versus last year was registered, raising our market quota to 23.1%.
In the Storage Equipment segment, the same tendency was verified, registering a growth of 42.8% versus last year, by placing our market quota at 21.3%.
It's necessary to emphasize that the growth in both segments was caused by a better performance of our sales teams, as the total range was 46.5%, substantially higher than the market growth of 5%.
Taking the current situation into account, as well as, the forecasts of economic growth slowdown for 2020, we anticipate that the market could contract (about 10%).
In relation to Toyota's performance, it envisions a challenging year yet again, as the aggressiveness of competing brands has been reinforced considerably.
Our goal is to differentiate from competitors, maintaining a good assistance service, adapting according to the necessities and by creating and presenting innovative offers and solutions so that we can conquer new costumers and strengthen our performance and results.
The business volume of last year at Caetano Auto was over 238 million euros, surpassing the 234 million of the previous year, registering a growth close to 2%.
Nonetheless, Caetano Auto keeps the focus on continuous improvement, allowing interesting measurable paybacks to be achieved, such as the above-mentioned in relation to the business volume, but also at containing expenses, by leveraging the Company to profitability.
In terms of depreciation and amortization, these continue to influence negatively and significantly the results obtained, representing now more than 6 million euros. This amount results from the owned real estate and the substantial growth of this line caused by the increase of a new rent-acar activity in 2019 which must be considered jointly with the positive variation of service provision.
From real state it must also be reported the alienation of the buildings, in 2019, in Vila Real de Santo António, Algarve and Celão, in Viseu, both were rated for a long time in Investment Properties waiting for the alienation opportunity.
For everything that was already exposed, the 2019 financial year was a period where it was possible to increase the company's strength, keeping a positive level of results and as a result contributing for the consolidated results assessed by Grupo Toyota Caetano Portugal.
Business Environment in General: In general, the rhythm of economic growth in Cape Verde kept accelerating in the fourth trimester of 2019, registering the highest amount of the last seven (7) consecutive trimesters. So, the economic environment is favorable.
Sale stores: The trust indicator kept the downward trend of the last trimesters, evolving adversely versus the homologous trimester, with the economic environment in the sector being unfavorable. During the 4th trimester of 2019, the out-of- stock situations and the shortfall in demand were the main constraints of the sector.
Tourism: during the 4th trimester of 2019, the trust indicator in Cape Verde reversed the downward trend of the last trimester, standing above average range, the economic environment was favorable. The businessmen pointed the shortfall in demand as the main obstacle of the sector in the 4th trimester of 2019.
Construction: The indicator kept the upward trend of the last trimesters, registering the highest amount of the last forty-five (45) consecutive trimesters, evolving favorably versus the homologous trimester. The businessmen pointed the shortfall of demand and the difficulties in obtaining bank credit as the main constraints of the sector in the 4th trimester of 2019.
Transports and Auxiliary Services for Transports: This indicator developed positively versus the homologous trimester, standing above average range. The sectors situation is favorable. According to the businessmen, the competitors and financial difficulties were the main constraints of the sector in the 4th trimester of 2019.
*Source (Manufacturing Survey NSI CV 4th Trim 2019)
| Range 2019 / 2018 | |||||
|---|---|---|---|---|---|
| Brand 2019 2018 |
Quantity | % | |||
| Toyota | 435 | 417 | 18 | 4,31% |
In comparison with the same period of last year, Caetano Auto CV, S.A. Marketed 18 more units, a growth equivalent to 4.31% in new vehicles.
Positive remark to the reduction on the dependence of sales of two specific models, Hiace and Hilux. These two models in 2018 were responsible by an applicable sale of 73.86% of the year sales. However, in 2019 the sales volume of the same models corresponded to only 59.44% of the year sales.
This portrays a better distribution of the sales volume by model, generating, a smaller dependency and susceptibility to external events, which could influence the whole business.
| Range 2019 / 2018 | ||||||
|---|---|---|---|---|---|---|
| SALES | 2019 | 2018 | Amount | % | ||
| Parts/Accessories | 175 407 718 | 166 359 554 | 9 048 164 | 5,44% | ||
| Workshop (Labour) | 44 519 492 | 43 623 083 | 896 409 | 2,05% | ||
| Total | 219 927 210 | 209 982 637 | 9 944 573 | 4,74% |
(Values in ECV)
In relation to After Sales, it is possible to determine a slight increase in commercialized amounts versus the homologous period of last year although the collision during the first four-month period of the year had suffered a significant drop. However, during the year we reversed this drop and managed to recover the results.
Being the Government the biggest economy promoter and 2020, 2021 being election years, there will probably be a decrease in the acquisitions by the Government of Cape Verde (direct effect) and a decrease in the consumption by non-permanent staff as well (indirect effect). Despite this being a major non beneficial situation, we expect a growth of 5% in the sales of new vehicles in the 2020 year of operation. In terms of after sales a growth of 15% regarding the current year is also expected. This growth of the after sales business will be part of a strategy search and captivation of costumers with out of warranty vehicles that usually refrain from doing services at brand Dealers.
We concluded the financial year of 2019 with a fleet of 2460, which represents a decrease of approximately 16.78%, when compared to the same period of last year. This decrease has to do with a reduction of vehicles coming from the partnership with Caetano Auto.
However, the provision of vehicles for the rent-a-car business continues to grow, since the purchases for this segment, increased approximately 22.63%, compared to last year, with this, this segment is the one with more weight in our activity.
As always, we continue with the renting of Industrial machines, which equate to 24% of the total operational fleet.
As consequence of the fleet's reduction a reduction of the business volume was verified, it fell approximately 18.91%, compared to 2018, having reached 8.33 M Euros.
In spite of the drop of the business volume the Company, thanks to a suitable management, maintained their profitability levels contributing positively to the consolidated results assessed by Grupo Toyota Caetano Portugal.
Having verified the pointed perspectives in the management report of 2018 with the consequent drop of activity in 2019, as result of a shift in mobilities strategies on Caetano Auto, SA. part, we can now express that 2020 will present really similar activity volumes to 2019, with a final profitability also keeping levels of this financial year.
During 2019, concerning the automobile sector's performance, despite the small drop that was registered versus 2018, the significant growth of alternative energy based-vehicles sales is to be noted.
In this context, the Group reports a business volume of 465 million €, about 18 million € higher (+4.1%) versus what was achieved during the homologous period. The verified increase reflected the continuous growth of sales in the Hybrid technology vehicles segment, making Toyota's brand the national market's leader.
The Group remains with the objective of maintaining a reference position for the Toyota and Lexus brands in the automobile market. In order to do this, in the beginning of the year a series of strategies aimed at obtaining a level of operational results considered adequate for the normal development of the activity were put in practice. By the end of 2019, an E.B.I.T.D.A. of about 43 million €, about 900 thousand € higher than what was registered during the homologous period of 2018, was obtained.
Result from the development of the partnership with Toyota Financial Services implementing a new way to operationalize the activity between Distributor and the dealer network so that the average collection period was reduced, with significant consequences in the reduction of bank debt. This process, because of its gradual implementation throughout 2019, still hasn't produced palpable results at the financial result level, of which appeared as negative in about 2 million €, around 400 thousand € lower versus the registered in 2018.
The degree of financial autonomy of the Group of 46%, reflects the continuous policy of appropriate management of the capital structure.
With the intent of summarizing the evolution of the activity and performance of the Grupo Toyota Caetano Portugal, bellow follows a framework of comparative indicators in the monetary unit of thousands of €.
| Dec. '18 | Dec. '19 | Variation | |
|---|---|---|---|
| Business volume | 446 875 | 465 119 | 4.1% |
| Gross profit | 81 214 | 93 726 | 15.4% |
| % (f) sales | 18.2% | 20.2% | |
| Supplies and external services | 42 314 | 44 571 | 5.3% |
| % (f) sales | 9.5% | 9.6% | |
| Personnel costs | 41 164 | 41 371 | 0.5% |
| % (f) sales | 9.2% | 8.9% | |
| E.B.I.T.D.A. | 42 561 | 43 461 | 2.1% |
| % (f) sales | 9.5% | 9.3% | |
| Operating result | 19 137 | 18 293 | -4.4% |
| % (f) sales | 4.3% | 3.9% | |
| Financial outcome | -1 503 | -1 947 | -29.5% |
| % (f) sales | -0.3% | -0.4% | |
| Consolidated net profit | 12 873 | 11 647 | -9.5% |
| % (f) sales | 2.9% | 2.5% | |
| Net bank financing | 73 929 | 31 540 | -57.3% |
| Degree of financial autonomy | 43.1% | 46.0% |
Although the published statistics about the automobile market in Portugal for the first month of 2020, point towards a drop in the number of sold units, the Grupo Toyota Caetano Portugal, expects to go against that cycle during the current year. In order to do that, it counts with the expansion of electrical vehicles segment products offer, the entry into the small vans segment, as well as the important contribute from the new generation of "core model", Yaris, in order to be possible to maintain its market sustainability strategy.
Toyota Caetano's credit risk is mainly associated with loans to customers, related to its operating activity.
The main goal of Toyota Caetano's credit risk management is to ensure the effective collection of the operating receivables from its Customers, according to the negotiated payment terms.
In order to mitigate the credit risk resulting from the potential customer-related defaults on payments, the Group's companies exposed to this risk have:
A specific Credit Risk analysis and monitoring department;
Proactive credit management processes and procedures that are implemented and always supported by information systems;
Hedging mechanisms (credit insurance, letters of credit, bank guarantees, etc).
As a result of the relevant proportion of debt at variable rate in its Consolidated Balance Sheet, and of the subsequent interest payment cash flows, Toyota Caetano is exposed to interest rate risk.
Toyota Caetano has been using financial derivatives to hedge, at least partially, its exposure to interest rate variations.
As a Group with geographically diversified commercial relationships, the exchange rate risk is mainly the result of commercial transactions, arising from the purchase and sale of products and services in a currency that is different from the functional currency of each company.
The exchange rate risk management policy seeks to minimise the volatility of the investments and operations denominated in foreign currencies, contributing toward reducing the sensitivity of the Group's results to exchange rate fluctuations. The Group's exchange rate management policy is focused on a case-by-case assessment of the opportunity to hedge this risk, taking into account, particularly, the specific circumstances of the currencies and countries in question.
Toyota Caetano has been using financial derivatives to hedge, at least partially, its exposure to exchange rate variations.
The goal of Toyota Caetano's liquidity risk management is to ensure that the company has the ability to obtain, in a timely manner, the necessary funding to be able to undertake its business activities, implement its strategy and meet its payment obligations when due, while avoiding the need to obtain funding under unfavourable terms.
For this purpose, the Group's liquidity management involves the following aspects:
c) The diversification of the maturities of the debt issued in order to avoid excessive concentrations of debt repayments in short periods of time;
d) The arrangement of committed (and uncommitted) credit facilities, commercial paper programmes, and other types of financial operations with relationship Banks, ensuring the right balance between satisfactory liquidity levels and adequate commitment fees.
For detailed information, please refer to the Corporate Governance Report.
The company did not purchase or sell any own shares during this fiscal year. On December 31st, 2019, the company did not hold any own shares.
In line with the diagnosis performed to the needs of interested parties, Toyota Caetano Portugal, has been prioritizing over the years the implementation of policy of ethics and transparency, turning their sustainability strategy to life with a social and environmentally focused management.
During 2019, the implementation of a defined strategy, is mentioned in the main planned actions and in the results obtained:
Toyota Caetano Portugal has been reinforcing their strategy of the continuous improvement (Kaizen). Annually, the results of continuous improvement are recognized by the Administration to the Co-workers.
That is why Toyota Caetano Portugal continues committed in the implementation of their program "Toyota Environmental Challenge 2050", in coordination with Toyota Motor Europe.
For the sixth year running, Toyota Caetano Portugal participated in the annual report on Sustainable Development "Carbon Disclosure Project (CDP) – Climate Change", promoting corporative transparency and the accounting of the carbon footprint of the organization. The achieved result in 2019, was B (Management), above European Average C (Awareness).
For this CDP result, the strategy of massification of electrical vehicles in the national market really had its contribution, where we got an excellent ratio of 70% sales of hybrid and plug-in vehicles on the total of sales of light of passengers.
One of the implemented improvements towards carbon neutrality, was the alteration of electrical energy consumption to green energy (from renewable resources), certified by EDP – Energias de Portugal.
The campaigns of energy efficiency implemented in their building and procedures were also target of significant improvements. There were campaigns of energetical improvement with the progressive transformation of the buildings lighting to LED lighting, reducing substantially the consumption.
The Biodiversity is, closely, related with Climate Change, there are enough evidences demonstrating that the Climate Change can speed up the vanishing process of some species. Supporting their policy of social and environmental responsibility, a Protocol with Gaia's Municipal Council was signed – Parque Biológico – for technical monitoring of the Woods Ser Caetano.
This space intends to answer to the challenges of a greener and environmentally friendly society, and of which the Co-workers of Toyota Caetano Portugal will be able to enjoy.
The Program "A Toyota, A Tree" was also continued, since 2005 Toyota contributes so that Portugal becomes greener, offering to Nature a tree for each vehicle sold. This Program has been developed and grown in order to contribute even more and in a sustainable way to help with the recovery of burnt areas, common lands and arid regions, using a selection of certified plants and forest shrubs, in harmony with the biodiversity of the area to be planted.
We also subscribed the" Letter of Principle of the Business Council for Sustainable Development – Portugal", in line with the guiding principles of good business management, according to ethical, social, environmental, applicable quality standards in any context of the global economy. This way, we reinforce our commitment towards the ambition established by the Goals of Sustainable Development of the United Nations.
Continue the sustainable growth in electrical vehicles sales, for which we plot a goal of 74.1 % of penetration over the total passenger's vehicles sales.
Proceed with the daily thought of all Co-workers, focused on the Kaizen principle (continued improvement), where we aim for a goal of 1.5 ideas by Co-worker.
Continue to answer to international investors requests, about the transparency of the low carbon economy of Toyota Caetano Portugal, though the Carbon Disclosure Project (CDP) and keeping the "B level - Management".
Reinforce the implementation of integrated biodiversity programs in Ser Caetano Woods in the A Toyota, A Tree Campaign, with participation of numerous of our stakeholders.
Responding to the challenge issued by Toyota Material Handling Europe, the Industrial Equipment Division will participate in the Social and Sustainable Responsibility evaluation, by the EcoVadis Platform. This platform classifies the level of Social and Sustainable Responsibility of different Companies in order to connect the suppliers and international customers.
Obtain the Energy Certification in Industrial Equipment Division – North, by standard ISO 50001: 2018, initiated in 2019 (1st phase) and foreseen to be finalized in June of 2020.
The People Corporate Office was created in 2015 in order to make Toyota Caetano Portugal a better place to live, grow and work. An ongoing mission, which guides our daily ambition to build a better and more efficient Integrated People Management System, in line with the values, organizational culture and business goals.
2019 was the triggering year of the attraction strategy talent retention, which resulted in the launch of the A.R.T.E. Portal, whose mission is to Attract and Retain Exponential Talent. At a time where work should mainly be a source of personal and professional fulfilment, the definition of strategies that boost the attractiveness of said work is fundamental so that companies can continue their business and creating good experiences to the Customer, through human capital skills which can attract. We should continue promoting and reinforcing the value of our offer as employers, so that we attract the best People to work for Toyota and Lexus brands.
In this regard, the reception strategy of trainees – based on the Young Talent Program – was also a concern in 2019. Through the visual identity revision, the activation of a communication strategy in social media, the presence increase in education institution and job fairs, the trainees program conquered greater visibility and increased the applications number. The realization of the Open Day should be noted, it allowed young people to come to our facilities, where they will perform their internships, in a logic of closeness of the students to the business reality.
But speaking about the last year is inevitably talking about the reinvention of the Salvador Caetano Training. An attitude change, hand in hand with modern times and the innovation made us launch the digital @cademia Ser Caetano. This e-learning platform intends to bring all the advantages and opportunities of a real training center to the digital world, in an attractive, intuitive and easy access way. With contents adapted to each company and brand realities and with the digital convenience, serves the purpose of corporative alignment, through the dissemination of the key messages of the organization and the reinforcement of our values.
In terms of 2019's indicators, the Training of actives counted with 80 936 hours, in a total of 565 courses divided through retail areas, services and industry. The youth training had a total of 894 198 hours, in 43 courses and 770 trainees, spread over the 7 centers all around the country. Our Culture has been the support to the CPD strategy, since their creation, by acting in a transversal way. 2019 was a year of strategic skills definition for each group works, according to our values, being their practical implementation scheduled, through the course of 2020, in the different processes of the Integrated People Management System.
It's one step closer to the goal of a continuous development of our Co-workers, with focus on our leaders and their adjustment to the current and future needs.
While not forgetting the Toyota family influences, the BRiT program - Best Retailer in Town was implemented for the first time in Portugal, which involved all the dealers in the Toyota national network. This program aims to improve our services and the experience of the Co-worker and Customer, with a 360 degrees' vision. Highlight for the EES – Employee Engagement Survey – which has the purpose of measuring and supporting one of BriT pillars, the Co-workers involvement. This survey evaluates the satisfaction and the commitment of the Co-worker in the organization and his level of recommendation. This process supposes the effort of everyone, and for that reason the results are shared and improvement plans are created.
In 2019 we made Ser Caetano Barometer, a study of the organizational climate which allowed us to understand the perception of our Co-workers versus the organization.
On the way to digital transformation, the dematerialization of the procedures is now a reality in almost all the People Management areas, which has made possible an easier access of Coworkers to the information and a greater promptness in procedures provision.
The Performance and Development Management System (GDD) covered all of the Toyota Caetano Portugal universe, in 2019, allowing the alignment of conditions and benefits, to guide the course of the Co-worker and to provide a broad vision of the paths that he can take.
The year ended with the redefinition of the strategy of Social Corporative Responsibility, in line with all the activities that are already practiced by the brands and fostering the positive impact thar we have in communities we are in.
The ongoing implementation of good Kaizen techniques has to be noted, with the goal of inspiring a culture of ongoing improvement, that results of the suggestions of everyone who is part of the Organization.
During the last 5 years, many have been the challenges and the opportunities. We believe that only the continuity of this united strategy can flourish in attraction and retention of the best potential, integrating and developing our People.
The gender equality promotion is a constant concern for Toyota Caetano Portugal, emphasizing the technical skill and attitude, regardless of gender, as well as respective set-offs. In a sector historically male, it's important to focus on the richness of gender diversity and we are committed to female recruitment for areas and roles where their representation is still reduced.
Attitudes and behaviors that promote discrimination are firmly repudiated by Toyota Caetano Portugal. That's why, we are in the market with an upright, honest attitude, with respect towards everyone, promoting a friendly and worthy work environment. At the same time, the organization is actively promoting equal opportunities and moral integrity for all stakeholders taking part in the business.
With a meaningful inspiration by Toyota Way, in harmony with Ser Caetano's attitude, Toyota Caetano Portugal builds on its practice of defense of the Human Rights and respect for the People. Therefore, discriminatory behavior, based on race, ethnicity, nationality, social origin, age, gender, ideology, politics opinion, religion or any kind of physical or social condition are not accepted. TCAP promotes the extension of this techniques as well, in relationships with stakeholders, namely with Co-workers, so that these are taken into their personal relationships.
Toyota Caetano Portugal promotes diversity, from its Management until the Social Body. The renovation of the officers is a concern for the company, which recognizes the experience and the knowledge as needed and essential qualifications for performing functions. Only with these conditions we are able to have a sustainable strategy. Women also have an important role in this balance and have been increasingly taking leadership spots. In recruitment and in training the discussion and intergenerational learning is encouraged.
Based on these practices of gender diversity and sharing between generations, TCAP stands as a company prepared to face the challenges of a world increasingly global and inclusive.
We hereby declare, under the terms and for the purposes of Article 245(1)(c) of the Securities Code that, as far as we are aware, the individual and consolidated statements of Toyota Caetano Portugal regarding 2018 were prepared in accordance with the relevant accounting standards, providing a true and fair view of the assets and liabilities, financial situation and results of this company and other companies included in its consolidation perimeter, and that the management report contains a faithful account of the business evolution, performance and position of this company and of the subsidiaries included in its consolidation perimeter, as well as a description of the main risks and uncertainties they face.
In accordance with Article 376(1)(b) of the Commercial Companies Code, we propose the following appropriation of profits for the year, in the amount of Euros 11.593.984,22, expressed in Toyota Caetano Portugal's individual financial statements:
| a) For non-distributable reserves account for profits in financial holdings arising from the application of the equity method. |
||
|---|---|---|
| Eur | 2.245.030,85 | |
| b) For dividends to be attributed to capital, €0.20 per share, which, for 35,000,000 shares, amounts to a total of |
||
| Eur | 7.000.000,00 | |
| c) The remainder for the Retained Earnings account | Eur | 2.348.953,37 |
This report wouldn't be finished without expressing our recognition to people or entities that contributed in any way for the development of Company activities or for the results which were obtained, namely:
Vila Nova de Gaia, March 17th 2020
Board of Directors
José Reis da Silva Ramos –President Maria Angelina Martins Caetano Ramos Salvador Acácio Martins Caetano Miguel Pedro Caetano Ramos Matthew Peter Harrison Katsutoshi Nishimoto Rui Manuel Machado de Noronha Mendes
(In terms of the article 447 of the Portuguese Commercial Companies Code and according to the paragraph c) of the article 9 and number 4 of article 14, both Regulation 5/2008 of CMVM)
In compliance of the article 447 of the Portuguese Commercial Companies, it is stated that, in 31st December 2019, the administration and monitoring member bodies of the Company did not previously own any shares or obligations.
It also stated that the administration and monitoring member bodies didn't perform any acquisitions, encumbrance or cessation of ownership with purpose shares or obligations of the Company during 2019's financial year.
It is also stated, up next, the transferable security of the Company held by other companies where the administration and monitoring member bodies exercise positions in social bodies:
the stockholder Salvador Caetano Auto, SGPS, S.A. (of which Mr. Salvador Acácio Martins Caetano is the President of the Board of directors, Mrs. Maria Angelina Martins Caetano Ramos is the Vice-President of the Board of directors and Mr. Miguel Pedro Caetano Ramos is a Member of the Board of directors), Acquired: on July 16th 2019, 9.250 shares with the price per unit of 2.76 €; on July 22th 2019, 623.626 shares with the price per unit of 2.80 €; on July 23th 2019, 6.585 shares with the price per unit of 2.80 €; on July 29th 2019, 30 shares with the price per unit of 2.70 €; on July 30th 2019, 5.000 shares with the price per unit of 2.80 €; on August 1st 2019, 900 shares with the price per unit of 2.80 €; on August 2nd 2019, 10.580 shares with the price per unit of 2.80 €; on August 9th 2019, 581 shares with the price per unit of 2.76 €; on August 12th 2019, 470 shares with the price per unit of 2.76 €; on 13th August 2019, 1.399 shares with the price per unit of 2.78 €; on August 14th 2019, 6.176 shares with the price per unit of 2.78 €; on August 15th 2019, 8.150 shares with the price per unit of 2.78 €; on 16th August 2019, 3.160 shares with the price per unit of 2.78 €; on August 19th 2019, 7.032 shares with the price per unit of 2.78 €; on August 20th 2019, 4.720 shares with the price per unit of 2.80 €; on August 30th 2019, 50 shares with the price per unit of 2.80 €; on September 2 nd 2019, 87 shares with the price per unit of 2.80 €; on September 5th 2019, 650 shares with the price per unit of 2.80 €; on September 11th 2019, 1 share with the price per unit of 2.80 €; which on December 31st 2019 held 23.937.665 shares with the price per unit of 1 euro.
the stockholder COVIM – Sociedade Agrícola, Silvícola e Imobiliária, S.A. didn't have movements (of which Mrs. Maria Angelina Martins Caetano Ramos is the President of the Board of directors, Mr. José Reis da Silva Ramos is partner of the President of the Board of directors), which on 31st December 2019 held 393.252 shares with the price per unit of 1 euro.
For this previous purpose at the end of number 1 of article 447 of the Portuguese Commercial Companies Code (in a control or group relationship with the company), it stated that:
• Mr. José Reis da Silva Ramos, President of the Board of directors, is the holder of:
1 This percentage includes shares held by the partner • Mrs. Maria Angelina Martins Caetano Ramos, a Member of the Board of directors, is the holder of:
1 This percentage includes shared held by the partner
• Mr. Salvador Acácio Martins Caetano, a Member of the Board of directors, is the holder of:
1 This percentage includes shares held by the partner
• Mr. Miguel Pedro Caetano Ramos, a Member of the Board of directors, is the holder of: - 0.00223% of the social capital of Grupo Salvador Caetano, SGPS, S.A., company which is in a control relation with the Company.
(In terms to the Regulation 5/2008 of CMVM)
On December 31st 2019, the stockholders with qualified participations in the company's capital are the following:
| STOCKHOLDER | Shares | % of voting rights |
|---|---|---|
| ______________ Salvador Caetano - Auto - SGPS, S.A. |
23.937.665 | 68.393 |
| Toyota Motor Europe NV/SA | 9.450.000 | 27.000 |
December 2019
| (Euros) | ||
|---|---|---|
| Dec'19 | Dec'18 | |
| SALES | 361.725.495 | 363.662.703 |
| CASHFLOW | 21.780.049 | 22.936.004 |
| NET INCOME | 11.593.984 | 12.786.759 |
| NET FINANCIAL EXPENSES | 1.868.571 | 2.060.032 |
| PAYROLL EXPENSES | 16.594.512 | 16.240.571 |
| NET INVESTMENT | 7.549.114 | 8.358.574 |
| GROSS WORKING CAPITAL | 97.660.241 | 89.552.756 |
| GVA | 32.253.106 | 30.991.581 |
| UNITS SOLD | 18.504 | 18.820 |
| NUMBER OF EMPLOYEES | 533 | 514 |
| ASSETS | Notes | 31/12/2019 | 31/12/2018 |
|---|---|---|---|
| NON-CURRENT ASSETS | |||
| Intangible assets | 8 | 202.804 | 7.215 |
| Tangible fixed assets | 5 | 27.400.458 | 28.993.197 |
| Investment properties | 6 | 12.754.648 | 12.507.561 |
| Goodwill | 7 | 611.997 | 611.997 |
| Financial investments - equity method | 9 | 47.827.499 | 44.596.492 |
| Other financial investments | 10 | 19.600 | 59.504 |
| Deferred tax assets | 15 | 1.447.256 | 1.320.835 |
| Total non-current assets | 90.264.262 | 88.096.801 | |
| CURRENT ASSETS | |||
| Inventories | 11 | 75.326.451 | 61.082.260 |
| Accounts receivable | 12 | 72.522.678 | 110.786.784 |
| Other accounts receivable | 13 | 4.453.817 | 3.629.670 |
| Corporate income tax receivable | 15 | 253.616 | 0 |
| Other current assets | 14 | 499.118 | 2.835.539 |
| Other financial investments | 10 | 1.995.192 | 3.432.799 |
| Cash and cash equivalents | 4 | 9.465.441 | 15.003.395 |
| Total current assets | 164.516.312 | 196.770.447 | |
| 254.780.574 | 284.867.248 |
| EQUITY AND LIABILITIES | Notes | 31/12/2019 | 31/12/2018 | |
|---|---|---|---|---|
| EQUITY | ||||
| Share capital | 35.000.000 | 35.000.000 | ||
| Legal reserve | 7.498.903 | 7.498.903 | ||
| Adjustments to financial investments | 8.437.143 | 5.810.898 | ||
| Revaluation reserve | 6.195.184 | 6.195.184 | ||
| Other reserves | 67.319.346 | 67.319.346 | ||
| Retained earnings | 5.279.796 | 1.788.817 | ||
| Net income | 11.593.984 | 12.786.759 | ||
| Total equity | 16 | 141.324.356 | 136.399.907 | |
| LIABILITIES | ||||
| NON-CURRENT LIABILITIES | ||||
| Loans | 17 | 34.956.029 | 35.552.624 | |
| Pension Fund Defined benefit plan liabilities | 21 | 6.150.000 | 5.560.983 | |
| Deferred tax liabilities | 15 | 110.279 | 154.852 | |
| Total non-current liabilities | 41.216.308 | 41.268.459 | ||
| CURRENT LIABILITIES | ||||
| Loans | 17 | 5.968.352 | 35.330.069 | |
| Accounts payable | 18 | 33.586.141 | 35.020.440 | |
| Other accounts payable | 19 | 13.078.051 | 12.712.158 | |
| Corporate income tax payable | 15 | 0 | 1.945.972 | |
| Other current liabilities | 20 | 19.607.366 | 21.751.226 | |
| Pension Fund Defined benefit plan liabilities | 21 | 0 | 439.017 | |
| Total current liabilities | 72.239.910 | 107.198.882 | ||
| Total liabilities | ||||
| 113.456.218 | 148.467.341 | |||
| Total equity + liabilities | 254.780.574 | 284.867.248 |
CHARTERED ACCOUNTANT BOARD OF DIRECTORS
ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS - President MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
| Notes | 31/12/2019 | 31/12/2018 | |
|---|---|---|---|
| Operational gains | |||
| Sales and service rendered | 24 & 25 | 361.725.495 | 363.662.703 |
| Other gains | 28 | 39.285.293 | 41.014.930 |
| Variation in production | 11 | 1.132.295 | -3.364.205 |
| Total operational gains | 402.143.083 | 401.313.428 | |
| Operational expenses | |||
| Cost of goods sold and raw material consumed | 11 | -306.011.719 | -302.261.681 |
| External supplies and services | 26 | -45.661.899 | -45.929.839 |
| Payroll expenses | 27 | -16.594.512 | -16.240.571 |
| Depreciations | 5, 6 & 8 | -8.699.177 | -8.358.574 |
| Impairment losses in inventories | 22 | -561.873 | |
| Impairment losses in accounts receivable | 22 | -36.526 | 5.778 |
| Other expenses | 28 | -10.123.588 | -12.327.753 |
| Total operational expenses | -387.689.296 | -385.112.640 | |
| Operational income | 14.453.787 | 16.200.787 | |
| Gains in financial investments - equity method | 9 | 2.245.031 | 2.295.780 |
| Interest expenses | 29 | -1.873.154 | -2.243.373 |
| Interest income | 29 | 4.583 | 183.341 |
| Income before taxes | 14.830.247 | 16.436.536 | |
| Income tax for the year | 15 | -3.236.263 | -3.649.777 |
| Net income | 11.593.984 | 12.786.759 |
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS - President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON
RUI MANUEL MACHADO DE NORONHA MENDES
| No tes |
Sha re cap ital |
al res Leg erv e |
Rev alu atio n res erv e |
Adj ust nts me to fina nci al inv est nts me |
Oth er res erv e |
Tot al res erv es |
Ret ain ed nin ear gs |
Ne t inc om e |
Tot al ity equ |
|
|---|---|---|---|---|---|---|---|---|---|---|
| Bal e S hee 1 J 20 18 t at anc anu ary Ch in p erio d ang es |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
3.5 79. 095 |
67. 319 .34 6 |
84. 592 .52 8 |
1.7 81. 402 |
9.3 38. 305 |
130 .71 2.2 35 0 |
|
| ME P Allo ion of fits cat pro Re ent (ac tua rial los ) me asu rem ses |
2.3 30. 890 |
2.3 30. 890 |
7.4 15 |
2.3 38. 305 - |
0 0 0 |
|||||
| Oth han in ity er c ges equ |
9 | 0 | 0 | -99 .08 7 2.2 31. |
0 | -99 .08 7 2.2 31. 803 |
7.4 15 |
2.3 38. 305 |
0 247 .21 |
|
| Ne t in com e |
0 | 803 | - 12. 786 .75 9 |
8 12. 786 .75 9 |
||||||
| Tot al g ain nd los s a ses |
12. 786 .75 9 |
12. 786 .75 9 |
||||||||
| Tra ctio wit h s har eho lde rs i n th erio d nsa ns e p Div ide nds Oth ctio tra ers nsa ns |
16 | -7.0 00. 000 |
0 7.0 00. 000 - 0 |
|||||||
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.0 00. 000 - |
7.0 00. 000 - |
||
| Bal hee t at 31 De ber 20 18 anc e s cem |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
5.8 10. 898 |
67. 319 .34 6 |
86. 824 .33 1 |
1.7 88. 817 |
12. 786 .75 9 |
136 .39 9.9 07 |
|
| Bal e S hee 1 J 20 19 t at anc anu ary Ch in p erio d ang es ME P |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
5.8 10. 898 |
67. 319 .34 6 |
86. 824 .33 1 |
1.7 88. 817 |
12. 786 .75 9 |
136 .39 9.9 07 0 0 |
|
| Allo ion of fits cat pro Re ent tua rial los |
2.2 95. 780 |
2.2 95. 780 |
3.4 90. 979 |
5.7 86. 759 - |
0 0 |
|||||
| (ac ) me asu rem ses Oth han in ity er c ges equ |
9 | 330 .46 |
330 .46 |
|||||||
| 0 | 0 | 0 | 5 2.6 26. 245 |
0 | 5 2.6 26. 245 |
3.4 90. 979 |
5.7 86. 759 |
0 247 .21 8 |
||
| Ne t in com e |
- 11. 593 .98 4 |
11. 593 .98 4 |
||||||||
| Tot al g ain nd los s a ses |
11. 593 .98 4 |
11. 593 .98 4 |
||||||||
| Tra ctio wit h s har eho lde rs i n th erio d nsa ns e p |
0 | |||||||||
| Div ide nds Oth ctio tra ers nsa ns |
16 | -7.0 00. 000 |
7.0 00. 000 - 0 |
|||||||
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.0 00. 000 - |
7.0 00. 000 - |
||
| Bal hee 31 De ber 20 19 t at anc e s cem |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
8.4 37. 143 |
67. 319 .34 6 |
89. 450 .57 6 |
5.2 79. 796 |
11. 593 .98 4 |
141 .32 4.3 56 |
CHARTERED ACCOUNTANT BOARD OF DIRECTORSALEXANDRA MARIA PACHECO GAMA JUNQUEIRA
JOSÉ REIS DA SILVA RAMOS - President MARIA ANGELINA MARTINS CAETANO RAMOSSALVADOR ACÁCIO MARTINS CAETANOMIGUEL PEDRO CAETANO RAMOSKATSUTOSHI NISHIMOTOMATTHEW PETER HARRISONRUI MANUEL MACHADO DE NORONHA MENDES Statement of the comprehensive income at 31 December 2019 and 2018
| 31/12/2019 | 31/12/2018 | |
|---|---|---|
| Net profit for the period Components of other consolidated comprehensive income, that could not be recycled by profit and loss Remeasurement (actuarial losses gross of tax) (Note 21) Deferred tax of actuarial losses (Note 15) Other changes in equity |
11.593.984 | 12.786.759 |
| Comprehensive income | 11.593.984 | 12.786.759 |
| CHARTERED ACCOUNTANT | BOARD OF DIRECTORS | |
| ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA | JOSÉ REIS DA SILVA RAMOS - President | |
| MARIA ANGELINA MARTINS CAETANO RAMOS | ||
| SALVADOR ACÁCIO MARTINS CAETANO | ||
| MIGUEL PEDRO CAETANO RAMOS | ||
| KATSUTOSHI NISHIMOTO | ||
| MATTHEW PETER HARRISON |
RUI MANUEL MACHADO DE NORONHA MENDES
| Notes | 2019 | 2018 | (Euros) | |||
|---|---|---|---|---|---|---|
| STATEMENT OF CASH FLOWS ON OPERATING ACTIVITIES | ||||||
| Collections from customers Payments to suppliers Payments to personnel |
Operating flow | 514.813.229 -434.778.449 -11.363.151 |
68.671.629 | 476.589.092 -419.707.084 -8.446.124 |
48.435.884 | |
| Payments of income tax Other collections/Payments related to operating activities |
-6.919.904 -21.074.793 |
-4.837.374 -23.662.739 |
||||
| Cash flow from operating activities | 40.676.932 | 19.935.770 | ||||
| STATEMENT OF CASH FLOWS ON INVESTING ACTIVITIES | ||||||
| Collections from: Investments Tangible fixed assets |
5 | 1.629.831 0 |
99.702 | |||
| Investment properties Investment subsidy Interest and others |
6 | 1.695.000 | ||||
| Dividends | 1.629.831 | 1.794.702 | ||||
| Payments to: Investments Tangible fixed assets Investment properties Intangible assets |
9 5 6 8 |
-1.618.680 -1.345.701 -404.473 -219.205 |
-3.588.059 | -2.252.938 | -2.252.938 | |
| Cash flow from investing activities | -1.958.228 | -458.236 | ||||
| FINANCING ACTIVITIES | ||||||
| STATEMENT OF CASH FLOWS ON FINANCING ACTIVITIES | ||||||
| Collections from: Loans Payments to: |
17 | 93.000.000 | 93.000.000 | 306.483.075 | 306.483.075 | |
| Loans Lease down payments Interest and others |
17 17 |
-122.400.000 -6.219.749 -1.620.851 |
-310.983.075 -5.478.163 -1.726.321 |
|||
| Dividends | 16 | -7.016.060 | -137.256.659 | -6.995.076 | -325.182.634 | |
| Cash flow from financing activities | -44.256.659 | -18.699.559 | ||||
| Cash and cash equivalents at beginning of period | 4 | 15.003.395 | 14.225.420 | |||
| Cash and cash equivalents at end of period | 4 | 9.465.441 | 15.003.395 |
Net flow in cash equivalents -5.537.955 777.975 CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS - President MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO
MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON
RUI MANUEL MACHADO DE NORONHA MENDES
(Amounts in Euros)
Toyota Caetano Portugal, S.A. ("Toyota Caetano" or "the Company") was incorporated in 1946, with its headquarters in Vila Nova de Gaia, which mainly carries economic activities included in the automotive sector, namely the import, assembly and commercialization of light and heavy vehicles, import and sale of industrial equipment, as well as the corresponding technical assistance, the creation and operation of human resources training and development projects, as well as the management of their own properties, including their rental, and the rental of short or long-term vehicles, with or without a driver.
Its shares are listed in the Lisbon Stock Exchange Market since October 1987.
Toyota Caetano is the distributor of the brands Toyota and Lexus in Portugal and is the head of a group of companies ("Toyota Caetano Group").
As of 31 December, 2019, the companies of Toyota Caetano Group, their headquarters and abbreviations used, are as follows:
Companies Headquarters
| With headquarters in Portugal: Toyota Caetano Portugal, S.A. ("Parent company") |
Vila Nova de Gaia |
|---|---|
| Caetano Renting, S.A. ("Caetano Renting") | Vila Nova de Gaia |
| Caetano – Auto, S.A. ("Caetano Auto") | Vila Nova de Gaia |
| With headquarters in foreign countries: | |
| Caetano Auto CV, S.A. ("Caetano Auto CV") | Praia (Cape Verde) |
During the period ended December 31, 2019, there was a change in the composition of the consolidation perimeter with the liquidation of Saltano in May, 2019.
The attached financial statements are stated in Euros ( rounding by unit), as this is the functional currency used in the economic environment where the Group operates.
The main accounting policies adopted in the preparation of the consolidated financial statements are as follows:
These financial statements relate to the financial statements of Toyota Caetano Portugal S.A. were prepared according to the IFRS – International Financial Reporting Standards, as issued by the International Accounting Standards Board ("IASB"), the International Accounting Standards (IAS), as issued by the International Accounting Standards Committee ("IASC"), and its respective interpretations - IFRIC and SIC, as issued, respectively, by the International Financial Reporting Interpretations Committee ("IFRIC") and by the Standing Interpretation Committee ("SIC"), that have been endorsed by the European Union, in force at the date of preparation of the financial statements.
(Amounts in Euros)
The financial statements have been prepared on a going concern basis, based on the accounting and having as basis the principle of the historical cost and, in the case of some financial instruments, fair value.
First time adoption of the IFRS in the preparation of the financial statements occurred in 2016 so the transition date of the Portuguese Accounting Principles ("Accounting Standardization System" or "SNC") for these regulations was established on January 1, 2015, in accordance with the provisions of IFRS 1 - First-time adoption of international financial reporting standards ("IFRS 1").
The following standards, interpretations, amendments and revisions endorsed by the European Union and mandatory in the fiscal years beginning on or after 1 January 2019, were adopted by the first time in the fiscal year ended at 31 December 2019:
IFRS 16 (new), 'Leases'. This new standard replaces IAS 17 with a significant impact on the accounting by lessees who are now required to recognise a lease liability reflecting future lease payments and a "right-of-use asset" for all lease contracts, except for certain short-term leases and for low-value assets. The definition of a lease contract also changed, being based on the "right to control the use of an identified asset". The application of IFRS 16 may be retrospective or retrospective modified. As of IFRS 16, the necessary analysis and framing of the actual situations applicable to the date were made, and (i) considering the modified retrospective approach with the Asset equal to the Liability and (ii) considering, as a rule, the mandatory date and (iii) discount rates identical to those practiced in the market for other financing, it is concluded that the impact at the qualitative and quantitative level will not be significant in the financial statements of the Entity.
IFRS 9 (amendment), 'Prepayment features with negative compensation' (effective for annual periods beginning on or after 1 January 2019). The amendment introduces the possibility to classify certain financial assets with negative compensation features at amortized cost, provided that specific conditions are fulfilled, instead of being classified at fair value through profit or loss. This amendment did not have any impact in the Entity financial statements.
IAS 19 (amendment), 'Plan amendment, curtailment or settlement'. This amendment requires an entity to: i) use updated assumptions to determine the current service cost and net interest for the remaining period after amendment, reduction or settlement of the plan; and ii) recognize in the income statement as part of the cost of past services, or as a gain or loss in the settlement, any reduction in the excess of coverage, even if the excess of coverage had not been previously recognized, due to the impact of the asset ceiling. The impact on asset ceiling is recognized in Other Comprehensive Income, not being allowed to recycle it through profit for the year. This amendment did not have any impact in the Entity financial statements.
IAS 28 (amendment), 'Long-term interests in Associates and Joint Ventures'. The amendment clarifies that long-term investments in associates and joint ventures (components of an entity's investments in associates and joint ventures), that are not being measured through the equity method, are to be measured in accordance with IFRS 9 –
'Financial instruments'. The long-term investments in associates and joint ventures are subject to the expected credit loss impairment model, prior to being added, for impairment test purposes, to the whole investment in associates and joint ventures, when impairment indicators exist. This amendment is not applicable to the Entity financial statements.
Annual Improvements 2015 – 2017. The 2015-2017 annual improvements impact: IAS 23, IAS 12, IFRS 3 and IFRS 11. These improvements did not have any impact in the Entity financial statements.
IFRIC 23 (new), 'Uncertainty over income tax treatment'. This is an interpretation of IAS 12 - 'Income tax', and refers to the measurement and recognition requirements to be applied when there is uncertainty as to the acceptance of an income tax treatment by the tax authorities. In the event of uncertainty as to the position of the tax authority on a specific transaction, the entity shall make its best estimate and record the income tax assets or liabilities under IAS 12, and not under IAS 37 – 'Provisions, contingent liabilities and contingent assets', based on the expected value or the most probable value. The application of IFRIC 23 may be retrospective or retrospective modified. This interpretation did not have any impact in the Entity financial statements.
IAS 1 and IAS 8 (amendment), 'Definition of material' (effective for annual periods beginning on or after January 1, 2020). This amendment is still subject to endorsement by the European Union. The amendment revises the concept of material. Includes clarifications as to obscured information, its effect being like the omission or distortion of information. The group should assess materiality considering the financial statements as a whole. There are also some clarifications as to the term 'primary users of general purpose financial statements', defined as 'existing or potential investors, lenders and other creditors' that rely on general purpose financial statements to obtain a significant part of the information that they need. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
Conceptual framework, 'Amendments to references in other IFRS' (effective for annual periods beginning on or after January 1, 2020). As a result of the publication of the new Conceptual Framework, the IASB introduced changes to the text of various standards and interpretations, like: IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, SIC 32, in order to clarify the application of the new definitions of asset / liability and expense / income, in addition to some of the characteristics of financial information. These amendments are retrospective, except if impractical. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
IFRS 3 (amendment), 'Definition of a business (effective for annual periods beginning on or after January 1, 2020). This amendment is still subject to endorsement by the European Union. The amendment revises the definition of a business in order to account for business combinations. The new definition requires that an acquisition include an input, as well as a
substantial process that jointly generate outputs. Outputs are now defined as goods and services rendered to customers, that generate investment income and other income, and exclude returns as lower costs and other economic benefits for shareholders. Optional 'concentration tests' for the assessment if one transaction is the acquisition of an asset or a business combination, are allowed. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
IFRS 9, IAS 39 and IFRS 7 (amendment), 'Interest rate benchmark reform' (effective for annual periods beginning on or after January 1, 2020). These amendments are still subject to endorsement by the European Union. These amendments are part of the first phase of IASB 'IBOR reform' project and provide certain reliefs in connection with interest rate benchmark reform. The relief relate to hedge accounting, in terms of: i) risk components; ii) 'highly probable' requirement; iii) prospective assessment; iv) retrospective effectiveness test (for IAS 39 adopters); and v) recycling of the cash flow hedging reserve, with the objective that interest rate benchmark reform does not cause hedge accounting to terminate. However, any hedge ineffectiveness should continue to be recorded in the income statement. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
IFRS 17 (new), 'Insurance contracts' (effective for annual periods beginning on or after January 1, 2021). This standard is still subject to endorsement by the European Union. This new standard replaces IFRS 4 and applies to all entities issuing insurance contracts, reinsurance contracts and investment contracts with discretionary participation characteristics. IFRS 17 is based on the current measurement of technical liabilities at each reporting date. The current measurement can be based on a complete "building block approach" or "premium allocation approach". The recognition of the technical margin is different depending on whether it is positive or negative. IFRS 17 is of retrospective application. This satndard is not applicable to the Entity financial statements.
2.2.1 Adoption of IFRS 16 - 'Leases'
In accordance with the transitional provisions of IFRS 16, the Group chose to apply the "modified retrospective" on the date of initial adoption (January 1, 2019); comparative of the Financial Statements values were not restated.
The new IFRS 16 standard eliminated the classification of leases between operating or financial leases for lessee entities, as provided for in IAS 17. Instead, it introduced a single accounting model, very similar to the treatment that was given to financial leases in the accounts of tenants.
This model establishes, for the lessee, the recognition of:
The Entity adopted this new standard as of January 1, 2019, having applied the modified retrospective method, with assets equal to liabilities, so it did not restate the comparative accounts for the year 2018, with no impact on the Entity equity.
(Amounts in Euros)
The operating leases refer to leasing contracts for the use of industrial equipment.
Regarding previous commitments with financial leases, in the transition, the book values of assets and liabilities per lease as at December 31, 2018 (16.473.981 and 18.982.693 euros, Notes 5 and 17, respectively) were assumed as right-of-use asset and liabilities for lease in accordance with IFRS 16 to January 1, 2019 financial statements at the time of transition.
The principal accounting policies used in the preparation of the accompanying financial statements are as follows:
Tangible fixed assets are recorded at deemed cost, which corresponds to its acquisition cost or its revalue acquisition cost in accordance with generally accepted accounting principles in Portugal until that date, net of accumulated depreciation and accumulated impairment losses.
Impairment losses verified on the realization value of tangible fixed assets are recorded in the year in which they are estimated, against the "Provisions and impairment losses" account in the income statement.
Depreciation is computed on straight line basis on an annual basis, accordingly with the following useful lives:
| Years | |
|---|---|
| - Buildings and Other Constructions | 20 - 50 |
| - Machinery and Equipment | 7 - 16 |
| - Transport Equipment | 4 - 6 |
| - Administrative Equipment | 3 - 14 |
| - Other Tangible Assets | 4 - 8 |
Expenses with maintenance and repair costs of tangible fixed assets are recorded as a cost in the year in which they occur. The repairs of significant amount that increase the estimated usage period of the assets are capitalized and depreciated according to the assets remaining useful life.
Tangible fixed assets in progress relate to tangible assets under construction/development, and are recorded at acquisition cost. These assets are transferred to tangible fixed assets and depreciated as from the date in which they are prepared for use and in the necessary conditions to operate according with the management.
Gains or losses resulting from the disposals and write-offs are determined by the difference between the amount received and the carrying amount of the asset and are recognized as income or expense in the income statement.
The Company classifies its Lease operations as a finance or operating lease, based on the substance of the transaction rather than its legal form. As of January 1, 2019, the Company adopted IFRS 16 with the registration of transport equipment under lease (optics of the lessor) under the item "Assets under right of use" included in the "Tangible fixed assets" of the Statement of financial position. These assets are recorded at cost less accumulated depreciation and accumulated impairment losses. The cost of these assets comprises the initial costs and the initial measurement of liabilities related to leases due under lease contracts, less prepaid amounts and any incentives received. At the end of the lease, the Company reclassifies the tangible fixed assets leased to the item "Vehicles".
Intangible assets are recorded at acquisition cost, net of accumulated depreciation and accumulated impairment losses. Intangible assets are only recognized if it is likely that future economic benefits will flow to the Company, are controlled by the Company and if their cost can be reliably measured.
Research costs and expenses with new technical knowledge are recorded as costs in the statement of profit and loss when incurred.
Development costs are capitalized as an intangible asset if the Company has proven technical feasibility and ability to finish the development and to sell/use such assets and it is likely that those assets will generate future economic benefits. Development expenses which do not fulfil these requirements are recorded as an expense in the period in which they are incurred.
Internal expenses related to Software maintenance and development are recorded as costs in the statement of profit and loss, except in situations in which these expenses are directly related to projects from which it is likely that future economic benefits will flow to the Company. In such circumstances, these expenses are capitalized as intangible assets.
Intangible assets are depreciated on a straight-line basis over a period of three to five years.
The depreciation charge for each period of intangible assets shall be recognized in profit or loss in item "Depreciations and amortizations".
Investment properties which relate to real estate assets held to obtain income through its lease or for capital gain purposes, and not for use in production, external supplies and services or for administrative purposes, are recorded at its acquisition cost, being the respective fair value disclosed in the Notes to the financial statements (Note 6).
Whenever these assets fair value is lower than the respective acquisition cost, an impairment loss is recorded against the caption "Investment properties amortization" in the statement of profit and loss. As of the moment in which the recorded accumulated impairment losses no longer exist, they are immediately reversed against the caption "Other operating profits" in the statement of profit and loss until the limit of the amount that would have been determined, net of amortizations or depreciations, if no impairment losses would have ever been recognized in previous years.
Investment properties disclosed fair value is determined on an annual basis by an independent appraiser (Market, Cost, Profit and Use Method models) or internally.
(Amounts in Euros)
Accounting policy adopted as of January 1, 2019
Identification
The Company evaluates at the beginning date of each contract whether it corresponds to a lease contract or whether it contains a lease. In order to assess whether a contract assigns the right to control the use of an identifiable asset for a certain period of time, the Company evaluates whether, during the period of use of the asset, it cumulatively has:
The right to obtain substantially all the economic benefits derived from the use of the identifiable asset; and
The right to direct the use of the identifiable asset.
IFRS 16 distinguishes leases and service contracts considering whether an asset that is to be controlled is identified. The distinctions of operating leases (off balance sheet) and finance leases (included in the balance sheet) are eliminated at the lessee level and are replaced by a model in which an asset identified with a right to use and a corresponding liability is accounted for lease contracts, except for short-term (up to 12 months) and low-value contracts.
The "right to use" is initially measured at cost and subsequently at the net cost of depreciation and impairment, adjusted by remeasurement of the lease liability. The lease liability is initially measured based on the present value of the lease liabilities at the date. Subsequently, the lease liability is adjusted by the financial update of the aforementioned amount, as well as possible changes in the lease agreements.
The Company recognizes a right to use an asset and a lease liability on the date the contract enters in force. The right to use an asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made on or before the beginning date, in addition to any initial direct costs incurred, as well as dismantling and removal estimate costs of the underlying asset (if applicable), less any incentives granted.
The right to use an asset is depreciated in twelfths using the straight-line method over its estimated useful life or during the lease term, whichever is the lower.
The right to use an asset is periodically subject to impairment tests and any detected losses are immediately recorded in the consolidated income statement for the year.
The lease liability is initially recognized at the present value of the installments not yet paid at the date of the lease, discounted at the interest rate implicit in the lease, or, in the event that it is not possible to determine that rate, at the incremental interest rate of the lease. respective subsidiary. In most situations, the Company uses its incremental interest rate as the interest rate to be applied in the calculation referred to above.
The lease payments included in the measurement of the lease liability include the following components:
The lease liability is subsequently measured at amortized cost, using the effective interest rate method, being remeasured when: (i) changes in future payments arising from a change in the rate or index specified in the contract; (ii) a change in the Company's estimate of the amount to be paid as a residual value guarantee, or (iii) if the Company changes its assessment of the exercise of a call option, or of its extension or termination .
When the lease liability is remeasured, the value of the right to use an asset is adjusted by the same amount, except if the amount already recorded for the right to use is reduced to zero, in which case a gain or loss is recorded in income statement.
In short-term and low-value leases, the rents due are recognized as an expense in the income statement for the year to which they refer (Note 25). The commitments stated at the date of the statement of financial position with the payment of these leases are presented in Note 17.
Accounting policies adopted until December 31, 2018
Lease contracts are classified as (i) financial lease contracts, if all or a substantial part of the risks and benefits related to possession are transferred and as (ii) operational lease contracts if all or a substantial part of the risks and benefits related to possession are not transferred.
Classification as financial lease contracts or as operational lease contracts depends on the substance of the transaction and not on the form of the contract.
Tangible fixed assets acquired under financial lease contracts and the corresponding liabilities are recorded by the financial method. Under this method the cost of the fixed assets is recorded and reflected in the balance sheet in caption of tangible fixed assets and the corresponding liability determined in accordance with the contractual financial plan are recorded like obtained financing and reflected in the balance sheet. Lease down payments are constituted by interest expenses and by the amortization of capital in accordance with the contractual financial plan, with interests recognized as expenses in the statement of profit or loss for the year to which they relate and with the depreciation of the tangible fixed assets according to their estimated useful lives, according to Note 2.3. a), except when the lease term is shorter than the estimated useful lives.
For lease contracts considered as operational, the rents paid are recognized as an expense in the statement of profit or loss over the rental period (Note 25).
Goods, raw, subsidiary and consumable materials are recognized at the initial moment of their acquisition at cost. Subsequently, these are valued at average acquisition cost, which is lower than market value.
Finished and intermediate goods and work in progress are stated at production cost, which is lower than market value. Production costs include incorporated raw materials, direct labour, production overheads and external services.
Accumulated impairment losses to reduce inventories value reflect the difference between their acquisition cost and net realizable or market value, which corresponds to the price shown on market statistics.
In the case of Inventories, impairment losses are calculated on the basis of market indicators and various indicators of inventory rotation.
Government subsidies are recognized at the respective fair value when there is a solid guarantee that they will be received and that the Company will be able to accomplish the conditions required to its concession.
The subsidies related to costs incurred are registered as a gain if there is a reasonable guaranty that they will be received, if the company has already incurred in the subsidiary costs and if they fulfil the conditions for their concession.
Assets are assessed for impairment at each statement of financial position date whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Whenever the carrying amount of an asset exceeds its recoverable amount (defined as the highest of the net sale price and the use value, or as the net sale price for assets held for sale), an impairment loss is recognized in the statement of profit and loss under the caption "Provisions and impairment losses". The net selling price is the amount that would be obtained from the sale of an asset in a transaction between independent entities, less the cost of the disposal. The value in use is the present value of estimated future cash flows expected to arise from the continued use of an asset and its disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or, if not possible, for the cash-generating unit to which the asset belongs.
The reversal of impairment losses recognized in previous years is recorded when it is concluded that the impairment losses recognized for the asset no longer exist or have decreased. This analysis is performed whenever there is an indication that the impairment losses previously recognized have been reversed. The reversal is recorded in the statement of profit or loss in the caption "Other operating income". However, the increased carrying amount of an asset due to a reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation and amortization) had no impairment losses been recognized for that asset in prior years.
The value of Goodwill is not amortized, being tested for impairment purposes on an annual basis. The recoverable amount is determined as being the present value of estimated future cash flows that are expected to be generated by the continuous use of the asset. Impairment losses of Goodwill are recognized in the income statement in the caption "Provisions and Impairment Losses".
Goodwill impairment losses cannot be reversed.
Loan's related financial costs (interests, premiums, ancillary costs and lease interests) are recognized as financial costs in income statement of the period in which they are incurred, in accordance with the accrual principle and the effective interest rate method, except if those costs are directly related to the acquisition, construction or production of fixed assets. In this case, the referred costs are capitalized, being part of the asset cost. The capitalization of these costs begins after the beginning of the preparation of the construction or asset development activities and it is interrupted when the asset is ready to be used or when the project is suspended. Any financial income generated by loans that are directly related with a specific investment, are deducted to financial expenses elected for capitalization purposes.
Accounting policy adopted as of January 1, 2019
Recognition
Purchases and sales of investments in financial assets are recorded on the date of the transaction, i.e., the date on which the Company undertakes to buy or sell the asset.
The classification of financial assets depends on the business model followed by the Company to manage its financial assets (receipt of cash flows or appropriation of fair value changes) and the contractual terms of the cash flows receivable.
Changes to the classification of financial assets can only be made when the business model is changed, except in the case of financial assets at fair value through other comprehensive income, which are equity instruments and, therefore, can never be reclassified to another category.
Financial assets may be classified according to the following measurement categories:
(i) Financial assets at amortised cost: includes financial assets that correspond only to the payment of nominal value and interest, and the business model followed by management is the receipt of contractual cash flows;
(ii) Financial assets at fair value through other comprehensive income: this category may include financial assets that qualify as debt instruments (contractual obligation to deliver cash flows) or equity instruments (residual interest in an entity);
a. In the case of debt instruments, this category includes financial assets that correspond only to the payment of nominal value and interest, when the business model followed by management is the receipt of contractual cash flows, either occasionally or a result of their sale;
b. In the case of equity instruments, this category includes the percentage of interest held in entities over which the Company does not exercise control, joint control or significant influence,
and which the Company irrevocably chose, on the date of initial recognition, to designate at fair value through other comprehensive income;
(iii) Financial assets at fair value through profit or loss: includes assets that do not meet the criteria for classification as financial assets at amortised cost or at fair value through other comprehensive income, whether they refer to debt instruments or equity instruments that were not designated at fair value through other comprehensive income.
The classification of the Company's financial assets by category as of December 31, 2019, is shown in Note 29
The Company initially measures financial assets at fair value, plus transaction costs directly attributable to the acquisition of the financial asset, for financial assets that are not measured at fair value through profit or loss. Transaction costs of financial assets at fair value through profit or loss are recorded in the income statement when incurred.
Financial assets at amortised cost are subsequently measured in accordance with the effective interest rate method, minus impairment losses. Interest income on these financial assets is included in "Interest earned on assets at amortised cost" in financial income.
Financial assets at fair value through other comprehensive income, which are debt instruments, are subsequently measured at fair value through fair value changes recognised in other comprehensive income, except for variations related to the recognition of impairment, interest income and gains/(losses) due to foreign exchange differences, which are recognised in the income statement for the year. Financial assets at fair value through other comprehensive income are subject to impairment.
Financial assets at fair value through other comprehensive income which are equity instruments are measured at fair value on the date of initial registration and subsequently, and changes in fair value are recorded directly in other comprehensive income, in equity, and no future reclassifications will occur, even after derecognition of the investment. Dividends obtained from these investments are recognised as gains, in the income statement for the year, on the date they are attributed.
The Company prospectively assesses the expected credit losses associated with the financial assets, which are debt instruments, classified at amortised cost and at fair value through other comprehensive income.
The applied impairment methodology takes into account the credit risk profile of the debtors, and different approaches are used depending on the nature of the debtors.
With respect to the accounts receivable under the " Accounts receivable " and " Other Accounts receivable " headings and Assets from contracts with customers, the Company uses the simplified approach allowed by IFRS 9, according to which expected credit losses are recognised since the initial recognition of the accounts receivable and throughout their maturity, considering a matrix of historical default for the maturity of the accounts receivable, adjusted via prospective estimates.
With respect to accounts receivable from related entities, which are not considered part of the financial investment of these entities, credit impairment is assessed according to the following criteria: i) if the account receivable is immediately payable ("on demand"); ii) if the account receivable has a low risk; or (iii) if it has a maturity of less than 12 months.
In cases where the amount receivable is immediately payable and the related entity is able to pay it, the probability of default is close to 0% and, therefore, the impairment is considered equal to zero. In cases where the account receivable is not immediately payable, the related entity's credit risk is assessed and if it is considered "low" or if the maturity is less than 12 months, then the Company only evaluates the probability of a default occurring for the cash flows that will mature in the next 12 months.
To all other situations and types of accounts receivable, the Company uses the general approach of the impairment model, evaluating on each reporting date whether there has been a significant increase in credit risk since the date on which the asset was initially recognised. If there is no increase in credit risk, the Company calculates an impairment corresponding to the amount equivalent to expected losses within a period of 12 months. If there is an increase in credit risk, the Company calculates an impairment corresponding to the amount equivalent to expected losses for all contractual flows until the maturity of the asset.
The Company derecognises financial assets when, and only when, contractual rights to cash flows have expired or have been transferred and the Entity has substantially transferred all the risks and benefits pertaining to the ownership of the asset.
Investments held by the Company are classified as follows: 'Investments measured at fair value through profit and loss', 'Loans and receivables', 'Investments held to maturity' and 'Investments available for sale'. The classification depends on the subjacent intention of the investment acquisition.
These are all the remaining assets that are not classified as held to maturity or measured at fair value through profit and loss, being classified as non-current assets. This category is included in non-current assets, except if the Board of Directors has the intention of alienate the investment within a period inferior to 12 months starting from the Statement of financial position date.
At December 31, 2019 and 2018, Toyota Caetano did not have financial instruments registered in the items "Investments available for sale".
To determine the fair value of a financial asset or liability, if such a market exists, the market price is applied (Level 1). A market is regarded as active if quoted prices are readily and regularly available from an exchange, broker or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. Otherwise, which is the case of
some financial assets and liabilities, valuation techniques that are generally accepted in the market are used based on market assumptions (e.g.: discounted cash flow models that incorporate interest rate curves and market volatility, which is the case of derivative financial instruments) (Level 2). On the other cases, valuation techniques are used, not based on observable market data (Level 3).
Investments are all initially recognized at fair value, including transaction costs, with the exception of investments recognized at fair value through profit or loss. In this case, investments are initially recognized at fair value, and the respective transaction costs are recognized directly in the income statement.
"Available for sale investments" and "investments at fair value through profit or loss" are kept at fair value at the balance sheet date, without deducting any transaction cost that could occur until the time of disposal.
Available for sale investments representative of share capital from unquoted companies are recognized at the acquisition, taking into account the existence or not of impairment losses. It is conviction of the Board that the fair value of these investments does not differ significantly from their acquisition cost.
Gains and losses arising from a change in the fair value of investments available for sale are recorded under equity caption "Fair value reserves" until the investment is sold or disposed, or until it is determined to be impaired. At that moment, the accumulated gains or losses previously recognized in equity are transferred to profit and loss statement for the period.
The fair value of the financial investments available for sale is based on the current market prices. If the market is not net (non-listed investments), the Company records the acquisition cost, having in consideration the existence or not of impairment losses.
The Company makes evaluations if it considers that at the statement of financial position date exists clear evidence that the financial asset might be in impairment. In case of stock instruments classified as available for sale, have a significant drop or extended of its fair value inferior to its cost, it indicates that an impairment situation is occurring. If there is any evidence of impairment in "investments available for sale", the accumulated losses – calculated by the difference between the acquisition cost and the fair value deducted from any impairment loss previously recognized in the statement of profit and loss – are retrieved from the equity and recognized in the statement of profit and loss.
All purchases and sales of investments are recorded on their trade date, which is on the date the Company assumes all risks and obligations related to the purchase or sale of the asset.
The investments are derecognized if the right to receive financial flows has expired or was transferred, and consequently, all associated risks and benefits have been transferred.
Cash and its equivalents include cash on hand, bank deposits, term deposits and other treasury applications which reach their maturity within less than three months and are subject to insignificant risks of change in value.
(Amounts in Euros)
iii) Accounts receivables and Other Accounts receivables
These headings mainly include customer balances resulting from services rendered as part of the Company's activity and other balances related to operating activities. Balances are classified as current assets when they are estimated to be collected within a 12-month period. Balances are classified as non-current when they are estimated to be collected more than 12 months after the reporting date.
The " Accounts receivables " and " Other Accounts receivables " headings are initially recognised at fair value and are subsequently measured at amortised cost, minus impairment adjustments. Impairment losses in Accounts receivables and Other Accounts receivables are recorded in accordance with the principles described in the policy in Note 2.3.i. The identified impairment losses are recorded in the income statement in losses of impairment and other comprehensive income statement and are subsequently reversed by profit or loss.
Financial liabilities are classified in two categories:
The "Financial liabilities at amortised cost" category includes liabilities recorded under "Loans obtained" (Note 17), "Accounts payable" (Note 18) and "Other Accounts payable " (Note 19). These liabilities are initially recognised at fair value, net of transaction costs, and subsequently measured at amortised cost according to the effective interest rate method.
Financial liabilities are derecognised when the underlying obligations are extinguished by payment, cancelled, or expire.
As of December 31, 2019, the Company has only recognised liabilities classified as "Financial liabilities at amortised cost."
Financial liabilities are derecognised when the underlying obligations are extinguished by payment, cancelled, or expire.
Loans obtained are initially recognised at fair value, net of any transaction costs incurred. Loans are subsequently measured at amortised cost and the difference between the nominal value and the initial fair value recognised in the income statement and in the other comprehensive income statement throughout the term of the loan using the effective interest rate method.
Loans obtained are classified under current liabilities, unless the Company has an unconditional right to defer the payment of the liability for at least 12 months after the date of the financial report, in which case they are classified as non-current liabilities.
ii) Accounts payable
These headings usually include balances of suppliers of goods and services that the Company acquired in the normal course of its business. The items included in these will be classified as current liabilities if the payment is due within 12 months or less; otherwise, the accounts payable will be classified as non-current liabilities.
These financial liabilities are initially recognised at fair value. After their initial recognition, the liabilities shown under the "Accounts payable" heading are measured at amortised cost, using the effective interest rate method.
Toyota Caetano Portugal incorporated by public deed dated December 29, 1988 the Salvador Caetano Pension Fund, with subsequent updates in February 2, 1994, April 30, 1996, August 9, 1996, July 4, 2003, February 2, 2007, December 30, 2008, December 23, 2011 and December 31, 2013.
In order to estimate its liabilities for the payment of the mentioned responsibilities, the company obtains annually an actuarial calculation of the liabilities for past services in accordance with the "Current Unit Credit Method".
Recorded liabilities as of the statement of financial position date relate to the present value of future benefits adjusted for actuarial profits or losses and/or for liabilities for past services not recognized, net of the fair value of net assets within the pension fund (Note 21). The Entity recognized remeasurement in "Other reserves". The contribution to Define Contribution Plan are recognized in expenses for the year.
Contingent liabilities are defined by the company as (i) possible obligations from past events and which existence will only be confirmed by the occurrence or not of one or more uncertain future events not totally under Toyota Caetano's control or (ii) present obligations from past events not recognized because it is not expected that an output of resources that incorporate economic benefits will be necessary to settle the obligation or its amount cannot be reliably measured.
Contingent liabilities are not recorded in the financial statements, being disclosed in the respective Notes, unless the probability of a cash outflow is remote. In these situations no disclosure is made.
Contingent assets are possible assets that arise from past events and whose existence will only be confirmed by the occurrence or not of one or more uncertain future events not totally under the company's control.
Contingent assets are not recorded in the financial statements but only disclosed when it is likely the existence of future economic benefits.
In March 2007 the Company took the decision to apply to the Corporate Income Tax for the Group (RETGS) according to the articles 69th and 70th of Income Tax Code (CIRC) and beginning in 1st January 2007. In consequence, the parent company (Toyota Caetano Portugal, S.A.) shall book the income tax calculated in the Group Companies (Toyota Caetano Portugal, Caetano Auto and Caetano Renting) in order to determine the group income tax.
The Corporate Income Tax for the year is determined based on the net profit adjusted according to the fiscal regime applicable.
Deferred income taxes are computed using the statement of financial position liability method and reflect the timing differences between the amount of assets and liabilities for accounting purposes and the corresponding amounts for tax purposes. The deferred tax assets and liabilities are computed on an annual basis using the tax rates that are expected to be in force at the time these temporary differences are reversed.
Deferred tax assets are only recorded when there is reasonable expectation that sufficient taxable profits will arise in the future to allow their use or when there are temporary taxed differences that overcome temporary deductible differences at the time of its reversal. At the end of each year the Company reviews its recorded and unrecorded deferred tax assets which are reduced whenever their realization ceases to be likely, or recorded if it is likely that taxable profits will be generated in the future to enable them to be recovered.
Deferred tax assets and liabilities are recorded in the income statement, except if they relate to items directly recorded in equity, situations in which the corresponding deferred tax is also recorded in equity captions.
Revenues and expenses are recorded according to the accrual basis, by which they are recognized in the period to which they relate independently of when the amounts are received or paid. Differences between the amounts received and paid and corresponding income and expenses are recorded in the captions "accruals and deferrals" included in "Other current assets" and "Other current liabilities".
Income and expenses for which the actual amount is yet unknown are recorded based on the best estimate of the Board of Directors of the Company.
Revenue corresponds to the fair value of the amount received or receivable from transactions with customers in the normal course of business. Revenue is recorded net of any taxes, trade discounts, and financial rebates.
In determining the value of revenue, the Company evaluates the performance obligations undertaken towards customers in each transaction, the price of the transaction to be affected by each performance obligation that is identified, and the existence of variable price conditions that may lead to future adjustments to the value of the recorded revenue, for which the Company makes its best estimate.
Revenue is recorded in the income statement when the control over the product or service is transferred to the customer, i.e., at the moment when the customer becomes able to manage the use of the product or service and to obtain all the remaining economic benefits associated with it.
The Company considers that, given the nature of the product or service that is associated with the performance obligations undertaken, the transfer of control occurs mostly on a specific date, but there may be transactions in which the transfer of control occurs continuously over the contractual period that has been previously established.
The amounts recorded in the item "Other current assets" with the amount of 20.000 euros constitute contracts assets within the scpe of IFRS15 (note 14).
The amounts recorded under the captions "Other creditors" and "Other current liabilities" In the amount of 276.584 euros and 7.270.846 euros, respectively, constitute contracts liabilities under IFRS 15 ( notes 19 and 20).
All assets and liabilities, including assed and liabilities deferred tax, accomplishable or receivable in more than one year after the statement of financial position date are classified as "Non-current assets or liabilities".
Basic:
The basic earnings per share is calculated by dividing the taxable income of the shareholders by the weighted average number of common shares issued during the period, excluding the common shares acquired by the company and held as treasury shares.
Diluted:
Diluted earnings per share are calculated by dividing the profit attributable to shareholders, adjusted for the dividends of convertible preferred shares, convertible debt interest and gains and expenses resulting from the conversion, by the weighted average number of common shares issued during the period plus the average number of shares common shares issued in converting potential dilutive common shares.
In each year the Group identifies the most adequate business and geographic segments.
Information related to the identified operating segments is included in Note 24.
In that note we can find information by subsegments. For the subsegment of vehicles is presented by commercial and industry. For the subsegment of industrial equipment is present by commercial, services and rental
Assets and liabilities expressed in foreign currencies are converted to Euros at the prevailing exchange rates published by "Banco de Portugal". Favourable and unfavourable exchange differences, arising from changes between the exchange rates prevailing on the dates of the
transactions and those in effect on the dates of payment, collection or as of the period, are recorded in the Income Statement.
Events occurring after the statement of financial position date which provide additional information about conditions prevailing at the time of the statement of financial position ('adjusting events') are reflected in the financial statements. Events occurring after the statement of financial position date that provide information on post-statement of financial position conditions ('non-adjusting events'), when material, are disclosed in the Notes to the financial statements.
During the preparation of the consolidated financial statements, the Board of Directors of the Company based itself in the best knowledge and in the experience of past and/or present events considering some assumptions relating to future events.
Most significant accounting estimates included in attached financial statements as of December 31, 2019 and 2018 include:
a)Useful lives of tangible and intangible assets;
b)Registration of adjustments to the assets values (accounts receivable and inventories) and provisions;
c)Impairment tests performed to goodwill and sensibility tests (Note 7); and
d)Clearance of responsibilities with Pension complements (Note 21).
The underlying estimations and assumptions were determined based in the best knowledge existing at the date of approval of the financial statements of the events and transactions being carry out as well as in the experience of past and/or present events. Nevertheless, some situations may occur in subsequent periods which, not being predicted at the date of approval of the financial statements, were not consider in these estimations. The changes in the estimations that occur after the date of the financial statements shall be corrected in a foresight way. Due to this fact and to the uncertainty degree associated, the real results of the transactions may differ from the corresponding estimations. Changes to these estimates, which occur after publication of these consolidated financial statements, will be corrected in a prospective way, in accordance with IAS 8. The assumptions with the greatest impact on the estimates mentioned above are the discount rate used for the purposes of calculating the pension liabilities and the Goodwill impairment, and the mortality table used for the purposes of calculating the pension liabilities
The main significant judgments and estimations and assumptions relating to future events included in the preparation of the financial statements are described in the related notes to the financial statements.
The Company's activity is exposed to a variety of financial risks, such as market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. These risks arise from the unpredictability of financial markets that affect the capacity of projected cash flows and profits subject to a perspective of long term ongoing. Management seeks to minimize potential adverse effects that derive from that uncertainty in its financial performance.
The financial risks management is controlled by Toyota Caetano financial department, according to the policies established by the Group Board of Directors. The Board of Directors has established the main principles of global risk management as well as specific policies for some areas, as interest rate risk and credit risk.
As a Group with commercial interests geographically diversified the exchange rate risk is mainly the result of transactions arising from the purchase and sale of products and services in a currency that is different from the functional currency of each company.
The exchange rate risk management policy seeks to minimize the volatility of the investments and operations denominated in foreign currencies, contributing to reduce the sensitivity of the Group's results to exchange rate fluctuations. The Group's exchange rate management policy is focused on a case-by-case assessment of the opportunity to hedge this risk, taking into account, particularly, the specific circumstances of the currencies and countries in question.
As a result of the relevant proportion of debt at variable rate in its Consolidated Balance Sheet, and of the subsequent interest payment cash flows, Toyota Caetano is exposed to interest rate risk.
The goal of Toyota Caetano's liquidity risk management is to ensure that the company has the ability to obtain, in a timely manner, the necessary funding to be able to undertake its business activities, implement its strategy and meet its payment obligations when due, while avoiding the need to obtain funding under unfavourable terms.
For this purpose, the Company's liquidity management involves the following aspects:
a) A consistent financial planning based on operating cash flow forecasts for different time horizons (weekly, monthly, annual and multi-annual);
b) The diversification of funding sources;
c) The diversification of the maturities of the debt issued in order to avoid excessive concentrations of debt repayments in short periods of time;
d) The arrangement of committed (and uncommitted) credit facilities, commercial paper programs, and other types of financial operations with relationship Banks, ensuring the right balance between satisfactory liquidity levels and adequate commitment fees.
The Company's credit risk results mainly from: i) the risk of recovery of monetary assets entrusted to third parties, and ii) the risk of recovery of loans granted to entities outside the Company. Credit risk is assessed at the initial moment and over time in order to monitor its evolution.
A significant portion of the amounts receivable from customers is dispersed among a large number of entities, a factor that contributes toward reducing the credit concentration risk. As a general rule, the Company's customers are not assigned a credit rating.
Credit risk is monitored by the Company's financial department, under the supervision of the Board of Directors, based on: i) the rating assigned by the credit insurance company, with which the Company has negotiated a credit insurance agreement; (ii) the debtors' corporate nature; iii) the type of transactions originating the accounts receivable; iv) the experience of past transactions; and (v) the credit limits established for each customer.
(Amounts in Euros)
The Company considers the probability of default upon the initial recognition of the asset and, according to the occurrence of significant increases in credit risk continuously in each reporting period. In order to assess whether there has been a significant increase in credit risk, the Company compares the risk of default occurring by reference to the reporting date, with the risk of default assessed by reference to the date of initial recognition. Adequate and duly supported prospective information is considered. The following indicators are taken into account:
• Significant changes in the value of collateral for liabilities, or in the quality of third-party guarantees;
• Significant changes in the debtor's expected performance and behaviour, including changes in the debtor's payment conditions at the level of the Company to which it belongs, as well as changes at the level of its operating results;
Macroeconomic information (such as market interest rates or growth rates) is incorporated into the domestic credit model.
Irrespective of the above analysis, a significant increase in credit risk is presumed to exist if a debtor is in default by more than 30 days from the contractual payment date.
Default is deemed to exist when the counterparty fails to make contractual payments within 90 days of the invoice due date. When financial assets are derecognised, the Company continues to take the necessary measures to recover the amounts owed. In cases of successful recovery, the recovered amounts are recognised in the income statement for the year.
Financial assets are derecognised when there is no real expectation of recovery. The Company classifies a loan or account receivable to be derecognised when the debtor fails to make contractual payments within 90 days.
Impairment of financial assets
The Company uses the simplified approach to calculate and record the expected credit losses required by IFRS 9, which allows using estimated impairment losses for all " Accounts receivable " and " Other Accounts receivable " balances. In order to measure expected credit losses, " Accounts receivable " and " Other Accounts receivable " were aggregated based on the shared credit risk characteristics, as well as on the days of delay. Impairment losses on December 31, 2018 are determined as follows; the expected credit losses include information from prospective estimates. Seniority of customer balances in Note 12.
b) Loans granted to related entities
The balances in "Loans granted to related parties" are considered to have a low credit risk and, therefore, impairment in credit losses recognised during the period are limited to expected credit losses estimated for 12 months. These financial assets are considered to have a "low credit risk" when they have a low uncollectibility risk and the debtor has a high capacity to meet its contractual cash flow liabilities in the short term.
(Amounts in Euros)
The main goal of Toyota Caetano's credit risk management is to ensure the effective collection of the operating receivables from its Customers, according to the negotiated payment terms. In order to mitigate the credit risk that results from the potential customer-related defaults on
payments, the Group's companies that are exposed to this risk have:
• A specific Credit Risk analysis and monitoring department;
• Proactive credit management processes and procedures that are implemented and always supported by information systems;
• Hedging mechanisms (credit insurance, letters of credit, etc.).
The credit quality of bank deposits on December 31, 2019 can be summarize as follow:
| Bank Deposits Rating | Rating Agencies | Bank Deposits |
|---|---|---|
| A2 | Moody's | 59.201 |
| A3 | Moody's | 49.318 |
| Aa3 | Moody's | 10.868 |
| B1 | Moody's | 429.382 |
| B2 | Moody's | 130.744 |
| Baa1 | Moody's | 2.918.830 |
| Baa3 | Moody's | 5.371.790 |
| Others without rating | 407.706 | |
| Total | 9.377.839 |
The ratings presented correspond to ratings assigned by the rating agency Moody's.
During the year ended as of December 31, 2019, there were no changes in accounting policies and no material mistakes related with previous periods were identified.
As of 31 December 2019 and 31 December 2018 cash and cash equivalents detail was the following:
| DEC'19 | DEC'18 | |
|---|---|---|
| Money Bank Deposits at Immediate disposal |
87.602 9.377.839 |
86.840 14.916.555 |
| Total | 9.465.441 | 15.003.395 |
During 2019 and 2018 the movement in tangible fixed assets as well as in the accumulated depreciation were as follows:
| DEC'19 | Land | Buildings and other constructions |
Machinery and equipment |
Vehicles | Administrative equipment |
Other fixed assets |
Assets under right of use |
Construction in progress |
Total |
|---|---|---|---|---|---|---|---|---|---|
| Gross: | |||||||||
| Initial balance | 5.421.882 | 32.862.416 | 53.142.845 | 49.905.484 | 6.240.812 | 2.992.338 | 107.460 | 150.673.238 | |
| Effect of change in accounting policy - IFRS16 | (36.581.801) | 36.581.801 | - | ||||||
| Increases | - | 186.861 | 396.324 | 1.275.025 | 21.021 | 35.875 | 5.628.537 | 497.927 | 8.041.570 |
| Disposals | - | (96.521) | (3.427.056) | (832) | (312) | (1.063.388) | (4.588.109) | ||
| Transfers and Write-offs | (101.120) | (101.120) | |||||||
| Final balance | 5.421.882 | 33.049.277 | 53.442.648 | 11.171.651 | 6.261.001 | 3.027.901 | 41.146.951 | 504.267 | 154.025.580 |
| Depreciations: | |||||||||
| Initial balance | - | 30.388.020 | 50.985.534 | 31.227.188 | 6.165.534 | 2.913.765 | - | 121.680.041 | |
| Effect of change in accounting policy - IFRS16 | (20.107.820) | 20.107.820 | |||||||
| Increases | 419.873 | 700.798 | 715.075 | 37.736 | 20.633 | 6.464.559 | 8.358.675 | ||
| Transfers, disposals and write-offs | (96.521) | (2.330.881) | (832) | (312) | (985.048) | (3.413.593) | |||
| Final balance | - | 30.807.893 | 51.589.811 | 9.503.562 | 6.202.438 | 2.934.087 | 25.587.331 | - | 126.625.123 |
| Net Value | 5.421.882 | 2.241.384 | 1.852.837 | 1.668.090 | 58.563 | 93.815 | 15.559.619 | 504.267 | 27.400.458 |
| DEC'18 | Land | Buildings and other constructions |
Machinery and equipment |
Vehicles | Administrative equipment |
Other fixed assets |
Construction in progress |
Total |
|---|---|---|---|---|---|---|---|---|
| Gross: | ||||||||
| Initial balance | 3.946.027 | 32.576.731 | 52.682.383 | 49.067.308 | 6.208.216 | 2.969.294 | 32.456 | 147.482.415 |
| Increases | 1.481.200 | 285.685 | 494.624 | 6.208.332 | 32.680 | 23.044 | 75.004 | 8.600.569 |
| Disposals | (5.344) | (34.163) | (5.370.156) | (84) | (5.409.746) | |||
| Final balance | 5.421.882 | 32.862.416 | 53.142.845 | 49.905.484 | 6.240.812 | 2.992.338 | 107.460 | 150.673.238 |
| Depreciations: | ||||||||
| Initial balance | - | 29.983.693 | 50.290.028 | 27.995.974 | 6.111.277 | 2.889.240 | - | 117.270.211 |
| Increases | 404.328 | 710.314 | 6.724.588 | 54.341 | 24.525 | 7.918.095 | ||
| Transfers, disposals and write-offs | (14.808) | (3.493.374) | (84) | (3.508.266) | ||||
| Final balance | - | 30.388.020 | 50.985.534 | 31.227.188 | 6.165.534 | 2.913.765 | - | 121.680.041 |
| Net Value | 5.421.882 | 2.474.396 | 2.157.311 | 18.678.297 | 75.279 | 78.573 | 107.460 | 28.993.197 |
As at 31 December 2019 and 2018 the tangible fixed assets used under finance lease are resented as follows:
| DEC'19 | ||||
|---|---|---|---|---|
| Acquisition value | Depreciations | Current values | ||
| Assets under right of use Industrial equipment |
41.146.951 | (25.587.331) | 15.559.619 |
| DEC'18 | |||
|---|---|---|---|
| Acquisition value | Depreciations | Current values | |
| Tangible fixed assets Industrial equipment |
36.581.801 | (20.107.820) | 16.473.981 |
(Amounts in Euros)
As at 31 December 2019 and 31 of December of 2018, the caption "Investment properties" correspond to real estate assets detained by Toyota Caetano in order to obtain income through its lease or increase in value. These assets are measured at acquisition cost.
Gains associated to Investment properties are registered in the caption "Other Gains" and they ascended to 3.545.189 Euros in the period ended in 31 December 2019 (3.330.919 Euros in 31 December 2018) (Note 27).
In accordance with external appraisals done in the end of 2012, 2014, 2015, 2016, 2018 and 2019 by independent experts and in accordance with evaluation criteria usually accepted for real estate markets (Market Method, Cost Method, Return Method and Use Method), the fair value of those investment properties amounts to 61,4 million Euros, approximately ( 54,4 million Euros in 2018).
The Board of Directors is convinced that there is no significant change in the fair value of those investment properties in 2019 believing that are valid the appraisals done.
The detail of investment properties in 2019 and 2018:
| DEC'19 | DEC'18 | ||||||
|---|---|---|---|---|---|---|---|
| Buildings | Place | Carrying amount |
Fair value | Appraisal | Carrying amount |
Fair value | Appraisal |
| Industrial facilities Industrial facilities Industrial facilities Industrial warehouse Commercial facilities |
V.N. Gaia V.N. Gaia Carregado V.N. Gaia Cascais Cascais Prior Velho Vila Franca Xira |
2.584.894 225.720 4.951.364 784.140 91.948 281.715 3.464.725 370.142 12.754.648 |
8.692.000 788.000 23.120.000 9.165.200 1.300.000 1.000.000 15.715.000 1.648.000 61.428.200 |
Internal Internal Internal External Internal Internal Internal Internal |
2.802.242 237.553 4.989.846 804.483 100.294 237.818 2.943.103 392.221 12.507.561 |
8.692.000 788.000 19.218.000 6.077.000 1.300.000 1.000.000 15.715.000 1.648.000 54.438.000 |
Internal Internal Internal Internal External External Internal Internal |
During 2019 and 2018, the movements occurred in the investment properties as well as in the accumulated depreciation were as follows:
| DEC'19 | Land | Buildings and other constructions |
Construction in progress |
Total |
|---|---|---|---|---|
| Gross: | ||||
| Initial balance | 8.884.303 | 30.126.572 | 0 | 39.010.875 |
| Increases | 58.753 | 420.502 | 479.255 | |
| Disposals | - | - | - | |
| Transfers and write-offs | 101.120 | 101.120 | ||
| Final balance | 8.884.303 | 30.185.326 | 521.622 | 39.591.250 |
| Depreciations: | ||||
| Initial balance | - | 26.503.315 | - | 26.503.315 |
| Increases | 333.287 | 333.287 | ||
| Transfers, disposals and write-offs | - | - | ||
| Final balance | - | 26.836.602 | - | 26.836.602 |
| Net value | 8.884.303 | 3.348.725 | 521.622 | 12.754.648 |
| DEC'2018 | Land | Buildings and other constructions |
Outras Propriedades de Investimento |
Total |
|---|---|---|---|---|
| Gross: | ||||
| Initial balance | 9.713.389 | 31.798.505 | 0 | 41.511.894 |
| Increases | - | |||
| Disposals | (829.086) | (1.671.934) | (2.501.020) | |
| Transfers and write-offs | - | |||
| Final balance | 8.884.303 | 30.126.572 | - | 39.010.875 |
| Depreciations: | ||||
| Initial balance | - | 26.956.819 | - | 26.956.819 |
| Increases | 358.166 | 358.166 | ||
| Transfers, disposals and write-offs | (811.670) | (811.670) | ||
| Final balance | - | 26.503.315 | - | 26.503.315 |
| Net value | 8.884.303 | 3.623.258 | - | 12.507.561 |
The movements that occurred in the period ended on December 31, 2019 are due to improvements in the Prior Velho facilities.
. The movements in the period ended at 31 December, 2018 are due to the disposal of the commercial facility located in Lisbon, Loures and Leiria, with matrix Articles U-000791-A, U-007970-A and U-002013-A and U-002015-A respectively.
During 2019, didn't occur any changes to the Goodwill value.
(Amounts in Euros)
The caption "Goodwill" is related with BT Activity (forklifts) resulting from Movicargo´s acquisition in 2008, whose activity was transferred to the parent company Toyota Caetano Portugal.
The Goodwill is not amortized, being tested annually for impairment.
For impairment test's purposes, the recoverable amount was determined in accordance with the Value in Use, through the discounted cash flows model and based on business plans carried out by people in charge, being approved by management. The discount rate used is considered to represent the risks inherent to the business.
In 31 December 2019, the main assumptions of the test are as follows:
| Industrial Equipment Division | |
|---|---|
| Goodwill | 611.997 |
| Cash Flows Projection Period | 5 years |
| Growth Rate (g) (1) | 2,0% |
| Discount Rate (2) | 6,25% |
(1) Growth rate used to extrapolate cash flows beyond the period considered in the business plan
(2) Discount rate applied to projected cash flows
The Board, supported by the estimated discounted cash flows, concluded that on December 31, 2019, the net book value of assets, including goodwill (612 thousand of Euros), does not exceed its recoverable amount (42 million of Euros).
The projections of cash flows were based on historical performance and on expectations of improved efficiency. The management believe that a possible change (within a normal scenario) in key assumptions used in calculating the recoverable amount will not result in impairment losses.
During 2019 and 2018, the movements in intangible assets were as follows:
| Research & | |||||
|---|---|---|---|---|---|
| DEC'19 | development expenses |
Software | Intangible assets in progress |
Total | |
| Gross: | |||||
| Initial balance | 1.477.217 | 1.174.902 | - | 2.652.119 | |
| Increases | 202.804 | 202.804 | |||
| Disposals | - | ||||
| Transfers and write-offs | - | ||||
| Final balance | 1.477.217 | 1.174.902 | 202.804 | 2.854.924 | |
| Depreciations: | |||||
| Initial balance | 1.477.217 | 1.167.687 | - | 2.644.904 | |
| Increases | - | 7.215 | 7.215 | ||
| Transfers, disposals and write-offs | - | ||||
| Final balance | 1.477.217 | 1.174.902 | - | 2.652.119 | |
| Net value | - | - | 202.804 | 202.804 | |
| DEC'18 | Research & development expenses |
Software | Total |
|---|---|---|---|
| Gross: | |||
| Initial balance | 1.477.217 | 1.174.902 | 2.652.119 |
| Increases | - | ||
| Disposals | - | ||
| Transfers and write-offs | - | ||
| Final balance | 1.477.217 | 1.174.902 | 2.652.119 |
| Depreciations: | |||
| Initial balance | 1.449.781 | 1.112.810 | 2.562.591 |
| Increases | 27.437 | 54.877 | 82.313 |
| Transfers, disposals and write-offs | - | ||
| Final balance | 1.477.217 | 1.167.687 | 2.644.904 |
| Net value | - | 7.215 | 7.215 |
(Amounts in Euros)
In 31 December 2019 and 31 December 2018, the financial investments were as follows:
| CAETANO AUTO CAETANO AUTO CV CAETANO RENTING | SALTANO | Equity Method Adjustments |
TOTAL | |||
|---|---|---|---|---|---|---|
| Balance 31 December 2017 | 16.556.205 | 3.498.170 | - | 20.131.418 | 650.651 | 40.836.444 |
| Acquisitions | ||||||
| Disposal | ||||||
| Gains/Losses | 1.723.335 | 181.708 | 2.095.023 | (140.932) | 3.859.134 | |
| Dividends received | ||||||
| Other capital movements | (99.087) | (99.087) | ||||
| Others (actuarial losses) | ||||||
| Balance 31 December 2018 | 18.279.540 | 3.679.878 | 22.226.440 | 410.632 | 44.596.492 | |
| Acquisitions | 7.340 | 1.592.071 | 4.269 | 1.603.680 | ||
| Disposal | ||||||
| Gains/Losses | 1.848.998 | 101.824 | 33.509 | (11.416) | (653.667) | 1.319.248 |
| Dividends received | ||||||
| Other capital movements | 330.465 | 330.465 | ||||
| Others (actuarial losses) | - | |||||
| Others | 20.569.910 | 1.627.258 | (22.219.294) | (260) | (22.385) | |
| Balance 31 December 2019 | 40.705.788 | 3.781.702 | 3.252.839 | - | 87.170 | 47.827.499 |
The gains and losses from group companies shown in Income Statement (2.295.780 Euros) include:
| Gains in financial investments - Equity method | 1.319.248 |
|---|---|
| Intercompany margin deferral (Note 20) | 925.783 |
| 2.245.031 |
The share of capital held in Subsidiaries can be summarized as follows:
| Caetano Auto | Caetano Renting | Caetano Auto CV | Saltano | |||||
|---|---|---|---|---|---|---|---|---|
| DEC'19 | DEC'18 | DEC'19 | DEC'18 | DEC'19 | DEC'18 | DEC'19 | DEC'18 | |
| Equity | 41.353.967 | 39.475.532 | 3.252.839 | 4.654.947 | 4.529.610 | 22.230.970 | ||
| Net income | 1.878.435 | 3.721.623 | 33.509 | 125.337 | 223.668 | 2.095.488 | ||
| % Direct | 98,43% | 46,31% | 100,00% | 81,24% | 81,24% | 0,00% 99,98% |
||
| % Indirect | 98,43% | 98,40% | 100,00% | 81,24% | 81,24% | 0,00% 99,98% |
Subsidiaries' financial position and net income can be summarized as follows:
| DEC'19 | |||||||
|---|---|---|---|---|---|---|---|
| Caetano Auto | Caetano Auto CV | Caetano Renting | |||||
| Assets | |||||||
| Current | 67.238.194 | 4.863.635 | 4.677.938 | ||||
| Non-current | 59.516.127 | 1.319.976 | 29.092.762 | ||||
| Liabilities | |||||||
| Current | 77.801.154 | 1.429.786 | 30.517.861 | ||||
| Non-current | 7.599.200 | 98.878 | |||||
| Equity | 41.353.967 | 4.654.947 | 3.252.839 | ||||
| Sales | 238.232.286 | 14.208.584 | 42935941,06 | ||||
| Operational income | 2.796.927 | 212.638 | 362.206 | ||||
| Financial income | -516.464 | -338.547 | |||||
| Net income | 1.878.435 | 125.337 | 33.509 |
| DEC'18 | |||||||
|---|---|---|---|---|---|---|---|
| Caetano Auto | Caetano Auto CV | Saltano | |||||
| Assets | |||||||
| Current | 56.490.292 | 5.692.940 | 2.016.166 | ||||
| Non-current | 90.240.546 | 1.257.814 | 23.789.240 | ||||
| Liabilities | |||||||
| Current | 99.202.695 | 2.322.266 | 3.574.436 | ||||
| Non-current | 8.052.611 | 98.878 | |||||
| Equity | 39.475.532 | 4.529.610 | 22.230.970 | ||||
| Sales | 234.877.024 | 14.733.922 | |||||
| Operational income | 5.127.518 | 356.168 | $-26.429$ | ||||
| Financial income | 31.019 | $-6.629$ | |||||
| Net income | 3.721.623 | 223.668 | 2.095.488 |
During the period ended in December 31, 2019 and 2018 the movements in Other Financial Assets were as follows:
| DEC'19 | DEC'18 | |
|---|---|---|
| Other Financial Assets | ||
| Balance as per 1st January | 3.492.302 | 3.492.302 |
| Acquisitions during the period | ||
| Other regularizations | -1.477.511 | |
| Balance as per 31st December | 2.014.792 | 3.492.302 |
Other Financial Assets can be summarized as follows:
| Other Financial Assets | DEC'19 | DEC'18 |
|---|---|---|
| Non-current Investments in small private companies |
19.600 | 59.504 |
| Current Loan to group companies (Note 30) |
1.995.192 | 3.432.799 |
| 2.014.792 | 3.492.302 |
The caption Investments in small companies regards to small investments already existing at Caetano Components that were transferred in result of the closing of the Company.
Both financial assets are measured at amortized cost less impairment losses.
The Board believes that the carrying amount of investments in small private companies is roughly near its fair value.
(Amounts in Euros)
As of 31 December 2019 and 31 December 2018, inventories detail was the following:
| DEC'19 | DEC'18 | |
|---|---|---|
| Goods | 65.937.778 | 50.074.376 |
| Raw materials | 6.772.894 | 8.885.206 |
| Finished and Intermediate goods | 2.567.925 | 1.242.750 |
| Work in progress | 687.048 | 879.928 |
| 75.965.645 | 61.082.260 | |
| Lost of impairments - Goods (Note 22) | (561.873) | |
| 75.403.772 | 61.082.260 | |
The cost of goods sold and consumed as of 31 December 2019 and 31 December 2018 was as follows:
| DEC'19 | DEC'18 | |||||
|---|---|---|---|---|---|---|
| Goods | Raw materials | Total | Goods | Raw materials | Total | |
| Opening balances | 50.074.376 | 8.885.206 | 58.959.582 | 45.144.905 | 10.413.228 | 55.558.133 |
| Purchases | 279.678.352 | 40.007.136 | 319.685.489 | 268.721.615 | 36.941.514 | 305.663.129 |
| Closing balances | 65.860.457 | 6.772.894 | 72.633.351 | 50.074.376 | 8.885.206 | 58.959.582 |
| Total | 263.892.271 | 42.119.448 | 306.011.719 | 263.792.144 | 38.469.536 | 302.261.680 |
The variation of production as of 31 December 2019 and 31 December 2018 was as follows:
| Finished and Intermediate goods and work in progress |
|||
|---|---|---|---|
| DEC'19 | DEC'18 | ||
| Opening balances Closing balances |
3.254.973 2.122.678 |
2.122.678 5.486.883 |
|
| Total | 1.132.295 | (3.364.205) | |
(Amounts in Euros)
As of 31 December 2019 and 31 December 2018 Accounts Receivable detail was the following:
| DEC'19 | DEC'18 | |
|---|---|---|
| Non-current assets | Non-current assets | |
| Accounts receivable, current accounts | 72.357.988 | 110.737.387 |
| Accounts receivable, doubtful accounts Lost of impairments (Note 22) |
4.986.656 77.344.644 (4.821.966) |
4.937.580 115.674.968 (4.888.184) |
| 72.522.678 | 110.786.784 |
| DEC'19 | - 60 days | 60-90 days | 90-120 days | + 120 days | Total |
|---|---|---|---|---|---|
| Customers | 60.616.479 | 1.946.993 | 351.891 | 1.813.908 | 64.729.272 |
| Personnel | 14 | 4.430 | 4.444 | ||
| Independent dealers | 7.596.637 | 20.771 | 6.864 | 7.624.272 | |
| Accounts receivable | 68.213.130 | 1.967.764 | 351.891 | 1.825.203 | 72.357.988 |
| DEC'18 | - 60 days | 60-90 days | 90-120 days | + 120 days | Total |
|---|---|---|---|---|---|
| Customers | 54.252.255 | 22.780.083 | 9.969.127 | 15.895.974 | 102.897.438 |
| Personnel | 4 | 11.102 | 11.106 | ||
| Independent dealers | 7.426.444 | 363.223 | 27.689 | 11.488 | 7.828.844 |
| Accounts receivable | 61.678.702 | 23.143.306 | 9.996.816 | 15.918.563 | 110.737.387 |
| DEC'19 | Not due | - 60 days | 60-90 days | 90-120 days | + 120 days | Total |
|---|---|---|---|---|---|---|
| Accounts receivable | 16.957.792 | 5.549.183 | 263.595 | 96.903 | 218.615 | 23.086.088 |
| Accounts receivable, related parties | 20.124.375 | 25.511.667 | 1.736.955 | 290.247 | 1.608.655 | 49.271.899 |
| Total | 37.082.167 | 31.060.850 | 2.000.550 | 387.150 | 1.827.271 | 72.357.988 |
| DEC'18 | Not due | - 60 days | 60-90 days | 90-120 days | + 120 days | Total |
|---|---|---|---|---|---|---|
| Accounts receivable | 3.991.355 | 12.792.462 | 1.065.704 | 456.298 | 3.649.483 | 21.955.302 |
| Accounts receivable, related parties | 29.508.548 | 37.444.392 | 9.883.825 | 4.302.358 | 7.642.962 | 88.782.085 |
| Total | 33.499.903 | 50.236.854 | 10.949.529 | 4.758.656 | 11.292.445 | 110.737.387 |
(Amounts in Euros)
| DEC'19 | - 60 days | 60-90 days | 90-120 days | + 120 days | Total |
|---|---|---|---|---|---|
| Doubtful accounts | 24.731 | 147 | 4.961.778 | 4.986.656 |
| DEC'18 | - 60 days | 60-90 days | 90-120 days | + 120 days | Total |
|---|---|---|---|---|---|
| Doubtful accounts | 1.196 | 1.196 | 1.196 | 4.933.994 | 4.937.580 |
As of 31 December 2019 and 31 December 2018 Other Accounts Receivable detail was the following:
| Other accounts payable | Current | |||
|---|---|---|---|---|
| DEC'19 | DEC'18 | |||
| Personnel | 114.194 | 20.605 | ||
| Down payments | 21.070 | 18.621 | ||
| Shareholders - RETGS (Note 30) | 4.318.553 | 3.590.444 | ||
| 4.453.817 | 3.629.670 | |||
Other Current Assets detail at 31 December 2019 and 2018 is as follows:
| DEC'19 | DEC'18 | |
|---|---|---|
| Debitors for accrued incomes | ||
| Recover of sales campaigns | 20.000 | 2.113.250 |
| Recover of expenses | 873 | 20.240 |
| Renting | 6.156 | 2.574 |
| Others | 67.743 | |
| 27.030 | 2.203.806 | |
| Deferrals | ||
| Insurance | 108.040 | 120.861 |
| Expenses from commercial paper programs | 130.459 | 125.116 |
| Others | 233.589 | 385.755 |
| 472.088 | 631.733 | |
| 499.118 | 2.835.539 | |
(Amounts in Euros)
Income Tax
The Company is subject to Corporate income (IRC) at the rate of 21% for the taxable income, plus local tax at the rate of 1,5% resulting in a tax rate, aggregated of a maximum of 22,5%.
In accordance with current legislation the Company tax returns are subject to review and correction by the tax authorities during a period of four years, except when there are fiscal losses, fiscal benefits have been given, or is in course inspections or claims, situations here the periods are increased of suspended. Consequently, the tax returns since 2015 are still subject to review. The Board of Directors of Toyota Caetano believes that any corrections resulting from reviews/inspections by the tax authorities to the tax returns open to inspection, will not have a significant effect on the financial statements of this Company.
Under Article 88 of the Corporate Income Tax Code, companies based in Portugal are also subject to autonomous taxation on a set of expenses at the rates provided in the mentioned article. For fiscal years beginning on or after January 1, 2010, taxable income in excess of 1,5 Million Euros and 7,5 Million Euros, have an additional income tax of 3%, exceeding 7,5 Million Euros and up to 35 Million an additional Income tax of 5% and taxable profit calculated in excess of more than 35 Million Euros an additional Income of 7%.
In March 2007 the Company took the decision to apply to the Corporate Income Tax for the Group (RETGS) according to the articles 69th and 70th of Income Tax Code (CIRC) and beginning in 1st January 2007. In consequence, the parent company (Toyota Caetano Portugal, S.A.) shall book the income tax calculated in the Group Companies (Toyota Caetano Portugal, Caetano Auto and Caetano Renting) in order to determine the group income tax.
As of 31 December 2019 and 31 December 2018 Income tax detail was the following:
| DEC'19 | DEC'18 | |
|---|---|---|
| Corporate income tax for the year (estimate) Corporate income tax for the year (payments in advance) for the year Corporate income tax for the year (RETGS) |
-3.407.257 4.362.847 -701.974 |
-3.653.324 2.038.925 -331.573 |
| 253.616 | -1.945.972 |
| DEC'19 | DEC'18 | |
|---|---|---|
| Income taxes in year Deferred income taxes |
3.407.257 -170.994 |
3.653.324 -3.547 |
| 3.236.263 | 3.649.777 |
The reconciliation of the earnings before taxes of the years ended at 31 December, 2019 and 2018 can be analyzed as follows:
| DEC'19 | DEC'18 | |
|---|---|---|
| Income before taxes | 14.830.247 | 16.436.536 |
| National tax expenses | 22,50% | 22,50% |
| Theoretical tax expenses | 3.336.806 | 3.698.221 |
| Ajustamentos em Inventários e Perdas por Imparidade | 561.873 | |
| Non-fiscal expenses | 428.656 | 165.286 |
| Penalties | 3.614 | 1.828 |
| Equity method | (2.245.031) | (2.295.780) |
| Accounting capital gains | (1.307.804) | (1.100.747) |
| 50% fiscal capital gains | 652.089 | 550.374 |
| Fiscal benefits | (84.258) | (52.736) |
| Current tax | 2.696.271 | 2.878.000 |
| Additional income tax | 71.426 | 79.515 |
| Local tax | 192.591 | 205.571 |
| State tax | 446.969 | 490.238 |
| Effective tax expenses | 3.407.257 | 3.653.324 |
Amounts and nature of the assets and liabilities for deferred taxes recorded in the financial statements as of 31 December 2019 and 2018 can be analyzed as follows:
| Initial | Reflected in income statement |
Reflected in income statement | Final | |||
|---|---|---|---|---|---|---|
| 2019 | balance | Decrease | Increase | Decrease | Increase | balance |
| Deferred tax assets | ||||||
| Provisions | 191.440 | 126.421 | 65.019 | |||
| Defined benefit plan liabilities | 1.129.395 | 1.129.395 | ||||
| 1.320.835 | - | - | 126.421 | - | 1.194.414 | |
| Deferred tax liabilities | ||||||
| 40% of depreciation as a result of legal | 37.937 | (1.282) | 36.656 | |||
| effect of the reinvestments of the gains infixed assets sales | 116.915 | (43.291) | 73.624 | |||
| 154.852 | - | - | - (44.573) |
110.280 | ||
| Initial | Reflected in income statement |
Reflected in income statement | Final | |||
| 2018 | balance | Decrease | Increase | Decrease | Increase | balance |
| Deferred tax assets | ||||||
| Provisions | 191.440 | 191.440 | ||||
| Defined benefit plan liabilities | 1.129.395 | 1.129.395 | ||||
| 1.320.835 | - | - | - - |
1.320.835 | ||
| Deferred tax liabilities | ||||||
| 40% of depreciation as a result of legal | 41.483 | (3.547) | 37.936 | |||
| effect of the reinvestments of the gains infixed assets sales | 116.915 | 116.915 | ||||
| 158.398 | - | (3.547) | - - |
154.851 |
(Amounts in Euros)
Under current legislation in Portugal the carry-forward of tax losses for the years still outstanding, is as follows:
i) Tax losses generated in 2014 and 2016: 12 years
ii) Tax losses generated after 2016: 5 years
As of 31 December 2019 and 2018, Toyota Caetano share capital was represented by 35.000.000 nomitiv shares, totally subscribed and realized, with a nominal value of 1 Euro.
The identification of corporate entities with more than 20% of issued capital was as follows:
| - Salvador Caetano Auto (S.G.P.S.), S.A | 68,39% |
|---|---|
| - Toyota Motor Europe NV/SA | 27,00% |
In 2019 were distributed dividends in amount of 7.000.000 Euros as a result of application of net income of 2018.
The Board of Directors will propose that a dividend shall be paid in the amount of 7.000.000,00 Euros. This proposal must be approved in the next General Shareholders Meeting.
The legal reserve is already fully incorporated under the commercial legislation (20% of the share capital), so it is no longer required that a minimum of 5% of annual net profit is destined for its endowment. This reserve is not available for distribution, except in case of dissolution of the Company, but may be used in share capital increases or used to absorb accumulated losses once other reserves have been exhausted.
The amount considered in "Adjustments to financial assets" refers to the results not appropriated by the Equity Method not yet distributed and to the transition adjustments of the initial application of the Equity Method.
The revaluation reserves cannot be distributed to the shareholders, except if they are completely depreciated and if the respective assets that were revaluated have been alienated.
The distributable amount in Equity, excluding Net Income is 72.599.142 Euros, includes in Other reserves and in Retained Earnings.
(Amounts in Euros)
In accordance with the provisions laid down in article 376 (1-b) of the Código das Sociedades Comerciais (Commercial Companies Code), we propose the following allocation for 2019's profits obtained in the financial year, amounting to Euros 11.593.984,22 stated in the individual financial statements of Toyota Caetano Portugal:
a) To non-distributable reserves by profits recognized in investments in subsidiaries resulting from the application of the equity method.
| Eur | 2.245.030,85 | |
|---|---|---|
| b) To dividends to be allocated to Share Capital, 0,20 Eur per share, which considering its 35.000.000 shares totals |
Eur | 7.000.000,00 |
| c) The remainder for the retained earnings account | Eur | 2.348.953,37 |
As of 31 December 2019 and 2018, loans can be detailed as follows
| DEC'19 | DEC'17 | ||||||
|---|---|---|---|---|---|---|---|
| Current | Non-current | TOTAL | Current | Non-current | TOTAL | ||
| Bank loans | - | - | 10.000.000 | 10.000.000 | |||
| Mutual loans | - | 10.000.000 | 10.000.000 | - | 10.000.000 | 10.000.000 | |
| Commercial paper | - | - | 19.400.000 | 19.400.000 | |||
| Lease liability | 5.968.352 | 12.456.029 | 18.424.381 | 5.159.955 | 14.951.241 | 20.111.196 | |
| Bond loan | 12.500.000 | 12.500.000 | 12.500.000 | 12.500.000 | |||
| 5.968.352 | 34.956.029 | 40.924.381 | 35.330.069 | 35.552.624 | 70.882.693 |
During 2019 the following movements occurred in of bank loans, overdrafts, other loans, Commercial Paper Programs and bond loan:
| Opening balances |
Increases | Disposals | Other movements * | Final balances BALANCES |
|
|---|---|---|---|---|---|
| Bank loans | 10.000.000 | 10.000.000 | 20.000.000 | - | |
| Mutual loans | 10.000.000 | - | 10.000.000 | ||
| Commercial paper | 19.400.000 | 83.000.000 | 102.400.000 | - | |
| Lease liability | 18.982.693 | 6.219.749 | 5.661.437 | 18.424.381 | |
| Bond loan | 12.500.000 | 12.500.000 | |||
| 70.882.693 | 93.000.000 | 128.619.749 | 5.661.437 | 40.924.381 | |
* With no impact in Statement of cash flows
As of December 31, 2019 and 2018, the detail of bank loans, overdrafts, other loans, Commercial Paper Programs and bond loan is as follows:
| DEC'19 | Used amount | Limit | |
|---|---|---|---|
| Current | |||
| Bank loan | 12.000.000 | ||
| Overdrafts | 4.000.000 | ||
| Confirming | 4.350.000 | ||
| Commercial paper | 37.000.000 | ||
| Lease liability | 5.968.352 | 5.968.352 | |
| 5.968.352 | 63.318.352 | ||
| Non-current | |||
| Mutual loans | 10.000.000 | 10.000.000 | |
| Lease liability | 12.456.029 | 12.456.029 | |
| Bond loan | 12.500.000 | 12.500.000 | |
| 34.956.029 | 34.956.029 | ||
| 40.924.381 | 98.274.381 |
| DEC'18 | Used amount | Limit | |
|---|---|---|---|
| Current Bank loan Overdrafts |
10.000.000 | 12.000.000 4.000.000 |
|
| Confirming Commercial paper |
19.400.000 | 10.000.000 41.000.000 |
|
| Leasing | 5.930.069 | 5.930.069 | |
| 35.330.069 | 72.930.069 | ||
| Non-current | |||
| Mutual loans | 10.000.000 | 10.000.000 | |
| Leasing | 13.052.624 | 13.052.624 | |
| Bond loan | 12.500.000 | 12.500.000 | |
| 35.552.624 | 35.552.624 | ||
| 70.882.693 | 108.482.693 |
Despite the deadline of more than one year, commercial paper contracts are considered in the short-term as is considered that these contracts mature on the dates of the complaint.
The item "Lease liability" (current and non-current) include liabilities for leasing contracts, related to the purchase of equipment.
The detail of this caption, as well as the reimbursement plan can be summarized as follows:
| Current | Non-current | |||||||
|---|---|---|---|---|---|---|---|---|
| Contract | Leasing | 2020 | 2021 | 2022 | 2023 | > 2023 | TOTAL | TOTAL |
| Diverse | Industrial equipment Capital |
5.968.352 | 4.770.556 | 3.810.503 | 2.167.555 1.707.416 | 12.456.029 | 18.424.381 |
The maturity of the outstanding loans as per December 31, 2019 can be detailed as follows:
| DEC'19 | < 1 year | 1 - 3 years | 3 - 5 years | > 5 years | Total | |
|---|---|---|---|---|---|---|
| Mutual loans | - | 10.000.000 | - | - | 10.000.000 | |
| Lease liability | 5.968.352 | 8.581.058 | 3.610.631 | 264.340 | 18.424.381 | |
| Bond loan | - | - | 12.500.000 | - | 12.500.000 | |
| Total | 5.968.352 | 18.581.058 | 16.110.631 | 264.340 | 40.924.381 | |
The interest payment plan are as follows:
| Interest aging | 2020 | 2021 | 2022 | 2023 | > 2023 | Total |
|---|---|---|---|---|---|---|
| Mutual loan Lease liability Bond loan |
226.208 372.543 318.576 |
55.625 239.755 315.972 |
136.753 316.840 |
65.465 316.840 |
17.627 0 |
281.833 832.143 1.268.229 |
As of 31 December 2019 and 2018 this caption was composed of current accounts with suppliers, which end at short-term.
As of December 31, 2019 and 2018 the detail of other accounts payable was as follows:
| Other accounts payable | Current | |
|---|---|---|
| DEC'19 | DEC'18 | |
| Personnel | - | 117.814 |
| Down payments | 276.584 | 202.521 |
| Public entities | 12.780.925 | 12.375.913 |
| Shareholders | 20.194 | 15.542 |
| Other accounts payable | 348 | 368 |
| 13.078.051 | 12.712.158 | |
The caption for Public Entities at December 31, 2019 and 2018 is as follows:
(Amounts in Euros)
| DEC'19 | DEC'18 | |
|---|---|---|
| Income taxes withheld | 189.457 | 156.484 |
| Value added taxes | 10.002.507 | 9.497.616 |
| Employee's social contributions | 262.492 | 230.685 |
| Local taxes | 177.019 | 207.376 |
| Others | 2.149.450 | 2.283.752 |
| 12.780.925 | 12.375.913 | |
As of December 31, 2019 and 2018 the detail of other current liabilities was as follows:
| DEC'19 | DEC'18 | |
|---|---|---|
| Creditors for accrued expenses | ||
| Vacations pay and bonus | 2.803.448 | 2.566.465 |
| Sales campaigns | 2.301.481 | 3.980.208 |
| Interest | 138.994 | 236.354 |
| Anticipated costs related with sold vehicles | 1.247.454 | 779.842 |
| Insurance | 209.460 | 155.822 |
| Car tax related with disposed vehicles not registered | 773.973 | 804.876 |
| Warranty claims | 70.282 | 5.729 |
| Personnel | 621.933 | 1.202.807 |
| Publicity | 65.473 | 81.482 |
| Anticipated costs related with other supplies | 306.374 | 347.238 |
| Royalties | 68.816 | 71.170 |
| Others | ||
| 8.607.689 | 10.231.993 | |
| Deferrals | ||
| Maintenance vehicles contracts | 7.270.846 | 6.994.534 |
| Subsidies | 26.449 | 28.653 |
| Debtors interest | 380 | 1.062 |
| Signage to be charged to dealers | 26.711 | 29.283 |
| Intercompany margin deferral | 3.413.697 | 4.339.479 |
| Others | 261.595 | 126.222 |
| 10.999.677 | 11.519.232 | |
| 19.607.366 | 21.751.225 | |
(Amounts in Euros)
Toyota Caetano (together with other associated and related companies) incorporated, by public deed dated December 29, 1988, the Salvador Caetano Pension Fund, which was subsequently updated in February 2, 1994, December 29, 1995, April 30, 1996, August 9, 1996, July 4, 2003, December23, 2002, July 4, 2003, February 2, 2007, December 30, 2008, December 23, 2011 and December 31, 2013.
The Pension Fund was set up to, while Toyota Caetano maintains the decision to make contributions to the referred fund, provide employees (beneficiaries), at their retirement date, the right to a pension complement, which is not subject to update and is based on a percentage of the salary, among other conditions setting up a defined benefit plan. To cover these liabilities, an Autonomous Fund (which is managed by BPI-Vida e Pensões, S.A.) is set up.
In sequence of a request to change the condition of that pension complement made near the "ISP - Instituto de Seguros de Portugal" the defined benefit plan as of January 1,2008, only the current retired workers and ex-employees with acquired rights, as well as for all the current employees with more than 50 years and more than 15 years of service of the company.
The actuarial presumptions used by the fund manager include the Mortality Table and disability TV 73/77 and SuisseRe 2001, respectively, as well as well as salary increase rate, pensions increase rate and average rate of return of 1%, 0% and 1,% to 2019, respectively (1%, 0% and 1,57% to 2018).
The variation of the Fund responsibilities of the Company with the Defined benefit plan in 2019 and 2018 can be summarized as follows:
| Responsibilities at January 1, 2018 | 19.999.202 |
|---|---|
| Cost of the current services | 32.116 |
| Cost of interest | 308.373 |
| (Gains) and actuarial losses | 831.146 |
| Pension payment | -1.515.972 |
| Transfers | |
| Change of assumptions | 50.123 |
| Responsibilities at December 31, 2018 | 19.704.988 |
| Responsibilities at January 1, 2019 | 19.704.988 |
| Cost of the current services | 41.077 |
| Cost of interest | 297.694 |
| (Gains) and actuarial losses | -291.844 |
| Pension payment | -1.569.326 |
| Transfers | -16.285 |
| Change of assumptions | 882.993 |
| Responsibilities at December 31, 2019 | 19.049.297 |
(Amounts in Euros)
The allocation during 2019 and 2018 to both plans (Defined benefit plan and Defined contribution plan) can be summarized as follows:
| Defined benefit | Defined contribution | ||
|---|---|---|---|
| plan | plan | Total | |
| Fund's value at January 1, 2018 | 16.215.733 | 5.212.254 | 21.427.987 |
| Contributions | 91.364 | 91.364 | |
| Contributions of reserve account | 238.503 | 238.503 | |
| Interest | 247.838 | 247.838 | |
| Real recovery of the plan assets | 408.437 | 127.169 | 535.606 |
| Pension payment (benefit payments) | -1.601.268 | -29.650 | -1.630.918 |
| Transfers between members | 0 | ||
| Used amounts from the CD account (reserve account) | -238.503 | -238.503 | |
| Others | -492 | -492 | |
| Fund's value 31 December de 2018 | 15.270.740 | 5.400.645 | 20.671.385 |
| Fund's value 31 December de 2019 | 15.270.740 | 5.400.645 | 20.671.385 |
| Contributions | 439.017 | 312.053 | 751.070 |
| Contributions of reserve account | 0 | ||
| Interest | 228.076 | 437.169 | 665.245 |
| Real recovery of the plan assets | 971.616 | 971.616 | |
| Pension payment (benefit payments) | -1.527.738 | -79.707 | -1.607.445 |
| Transfers between members | -16.285 | -9.331 | -25.616 |
| Used amounts from the CD account (reserve account) | 0 | ||
| Others | 0 | ||
| Fund's value 31 December de 2019 | 15.365.426 | 6.060.829 | 21.426.255 |
At 31 December 2019 and 2018, the Pension Fund's portfolio that covers the defined benefit plan was as follows:
| PORTFOLIO | % | Value | % | Value |
|---|---|---|---|---|
| DEC/2019 | DEC/2018 | |||
| Stocks | 11,6% | 1.782.389 | 10,5% | 1.603.428 |
| Bonds with fixed rate | 32,4% | 4.978.398 | 28,4% | 4.336.890 |
| Bonds with variable rate | 3,5% | 537.790 | 7,7% | 1.175.847 |
| Real estate | 41,4% | 6.361.286 | 39,4% | 6.016.672 |
| Cash | 4,8% | 737.540 | 7,0% | 1.068.952 |
| Other assets | 6,4% | 968.022 | 7,0% | 1.068.952 |
| Total | 100,0% | 15.365.426 | 100,0% | 15.270.740 |
The evolution of the pension fund's value and Toyota Caetano Portugal's responsibilities related with the defined benefit plan are as follows:
| Defined benefit plan | 2019 | 2018 |
|---|---|---|
| Responsibility's Values | 19.049.297 | 19.704.988 |
| Fund Value | 15.365.426 | 15.270.740 |
The Toyota Caetano Portugal responsibilities shown above was safeguarded through the creation of an accrual of costs for about 6,1 million Euros (6 million Euros in 31 December 2018) reflected in the Balance sheet caption of Pension Fund Liabilities.
(Amounts in Euros)
During 2019 and 2018, the following movements occurred in impairments:
| DEC'19 | Opening Balances |
Increases | Disposals | Write-offs | Final Balances |
|---|---|---|---|---|---|
| Doubtful accounts receivable Inventories |
4.888.184 38.203 (102.745) 561.873 |
(1.677) | 4.821.966 561.873 |
||
| Total | 4.888.184 | 600.077 | (102.745) | (1.677) | 5.383.839 |
| DEC'18 | Opening Balances |
Increases | Disposals | Write-offs | Final Balances |
| Doubtful accounts receivable | 5.412.762 | 14.029 | (518.801) | (19.807) | 4.888.184 |
Sales and services rendered by geographic markets, in 2019 and 2018, was as follows:
| 2019 | 2018 | Var (%) | 2019 | 2018 | Var (%) | 2019 | 2018 | Var (%) | |
|---|---|---|---|---|---|---|---|---|---|
| National market | External market | Total | |||||||
| Light vehicles | 248.107.893 | 250.403.447 | -1% | 51.102.285 | 54.817.823 | -7% | 299.210.178 | 305.221.270 | -2% |
| Heavy vehicles | 0 | 468.208 | 619.623 | -24% | 468.208 | 619.623 | -24% | ||
| Industrial vehicles | 17.096.658 | 14.693.731 | 16% | 298.465 | 143.728 | 108% | 17.395.123 | 14.837.459 | 17% |
| Spare parts and accessories | 39.346.565 | 40.062.640 | -2% | 594.885 | 604.396 | -2% | 39.941.450 | 40.667.036 | -2% |
| Others | 4.704.215 | 2.308.686 | 104% | 6.322 | 8.629 | -27% | 4.710.537 | 2.317.315 | 103% |
| 309.255.330 | 307.468.503 | 1% | 52.470.165 | 56.194.199 | -7% | 361.725.495 | 363.662.703 | -1% |
Given the nature of the Company's business, revenue is all recorded "point in time".
For the periods ended December 31, 2019 and 2018, the reporting by segments is as follows:
| National | External | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DEC'19 | Vehicles | Industrial equipment | Others | Vehicles | Industrial equipment | TOTAL | ||||||
| Industry | Commercial | Commercial | Services | Rental | Industry | Commercial | Commercial | Services | Rental | |||
| PROFITS | ||||||||||||
| External sales | 56.023 | 286.606.472 | 17.067.666 | 5.525.169 | 45.748.629 | 6.373.610 | 327.457 | 20.468 | 361.725.495 | |||
| Supplementary income | 13.430.762 | 8.809 | 13.439.571 | |||||||||
| INCOME | ||||||||||||
| Operational income | 11.725 | 10.409.727 | 1.317.830 | 2.781.549 | 863.984 | -1.072.459 | 93.234 | 30.265 | 12.888 | 5.044 | 14.453.787 | |
| Financial income | 157 | 1.619.350 | 36.596 | 16.126 | 39.885 | 136.628 | 18.764 | 976 | 61 | 27 | 1.868.570 | |
| Gains in subsidiaries | 2.245.031 | 2.245.031 | ||||||||||
| Net income | 11.567 | 5.554.114 | 1.281.234 | 2.765.423 | 824.098 | 2.245.031 | -1.209.087 | 74.471 | 29.289 | 12.827 | 5.017 | 11.593.984 |
| OTHER INFORMATION | ||||||||||||
| Total assets | 21.084.296 | 155.176.501 | 6.506.966 | 1.994.475 | 22.190.837 | 47.827.499 | 254.780.574 | |||||
| Total liabilities | 181.153 | 84.675.908 | 229.289 | 315.299 | 28.054.570 | 113.456.218 | ||||||
| Investments in subsidiaries (1) | 47.827.499 | 47.827.499 | ||||||||||
| Capital Expenditure (2) | 843.984 | 552.285 | 0 | 115.716 | 6.037.129 | 7.549.114 | ||||||
| Depreciation (3) | 709.129 | 1.291.994 | 68.172 | 66.157 | 6.563.725 | 8.699.177 | ||||||
| National | External | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DEC'18 | Vehicles | Industrial equipment | Others | Vehicles | Industrial equipment | TOTAL | ||||||
| Industry | Commercial | Commercial | Services | Rental | Industry | Commercial | Commercial | Services | Rental | |||
| PROFITS | ||||||||||||
| External sales | 91.034 | 287.576.751 | 14.693.731 | 5.106.987 | 47.360.202 | 8.665.039 | 143.728 | 25.230 | 363.662.703 | |||
| Supplementary income | 13.131.887 | 7.425 | 13.139.312 | |||||||||
| INCOME | ||||||||||||
| Operational income | 7.028 | 10.703.776 | 1.249.953 | 3.047.468 | 815.433 | 20.613 | 319.055 | 21.041 | 13.706 | 2.715 | 16.200.787 | |
| Financial income | 144 | 1.769.288 | 39.036 | 17.072 | 42.674 | 163.443 | 27.796 | 466 | 89 | 23 | 2.060.031 | |
| Gains in subsidiaries | 2.295.780 | 2.295.780 | ||||||||||
| Net income | 5.108 | 6.628.466 | 898.375 | 2.248.241 | 573.307 | 2.295.780 | -105.965 | 216.084 | 15.265 | 10.102 | 1.998 | 12.786.759 |
| OTHER INFORMATION | ||||||||||||
| Total assets | 27.453.036 | 181.302.262 | 6.966.555 | 1.971.803 | 24.284.451 | 44.596.491 | 286.574.598 | |||||
| Total liabilities | 4.846.028 | 112.139.635 | 1.725.531 | 266.613 | 25.983.753 | 144.961.560 | ||||||
| Investments in subsidiaries (1) | 44.596.491 | 44.596.491 | ||||||||||
| Capital Expenditure (2) | 554.690 | 168.200 | 0 | 118.859 | 4.167.989 | 5.009.739 | ||||||
| Depreciation (3) | 717.605 | 1.634.661 | 71.145 | 66.098 | 5.869.066 | 8.358.574 |
At 31 December 2019 and 2018, supply expenses were as follows:
| DEC'19 | DEC'18 | |
|---|---|---|
| Subcontracts | 220.805 | 94.068 |
| Specialized services | 29.780.834 | 29.436.135 |
| Professional services | 3.587.094 | 4.194.923 |
| Advertising | 20.150.757 | 19.085.799 |
| Vigilance and security | 419.925 | 366.239 |
| Professional fees | 918.540 | 836.133 |
| Commissions | 115.917 | 263.141 |
| Repairs and maintenance | 1.021.386 | 1.229.425 |
| Others | 3.567.215 | 3.460.476 |
| Materials | 8.852.105 | 9.614.420 |
| Tools and utensils | 96.467 | 90.616 |
| Books and technical documentation | 383.710 | 327.024 |
| Office supplies | 172.724 | 154.948 |
| Gifts | 33.614 | 17.326 |
| Others | 8.165.590 | 9.024.506 |
| Energy and fluids | 1.139.862 | 1.186.811 |
| Electricity | 481.009 | 584.292 |
| Fuel | 607.574 | 550.426 |
| Water | 51.279 | 52.094 |
| Others | ||
| Travel and transportation | 3.037.180 | 2.905.103 |
| Traveling expenses | 1.516.990 | 1.467.352 |
| Personnel transportation | 105.424 | 97.287 |
| Transportation of materials | 1.414.766 | 1.340.465 |
| Others | ||
| Other supplies | 2.631.114 | 2.693.301 |
| Rent | 525.209 | 500.423 |
| Communications | 452.373 | 419.661 |
| Insurance | 863.297 | 892.539 |
| Royalties | 379.216 | 446.094 |
| Notaries | 2.366 | 9.353 |
| Cleaning and comfort | 408.653 | 425.232 |
| 45.661.899 | 45.929.839 |
At 31 December 2019 and 2018, payroll expenses were as follows:
| DEC'19 | DEC'18 | |
|---|---|---|
| Payroll - management | 404.728 | 397.465 |
| Payroll - other personnel | 10.428.305 | 9.879.359 |
| Benefit plans | 876.351 | 613.728 |
| Termination indemnities | 238.470 | 389.555 |
| Social Security contributions | 2.697.516 | 3.082.327 |
| Workmen's insurance | 271.826 | 244.860 |
| Others | 1.677.316 | 1.633.276 |
| 16.594.512 | 16.240.571 | |
During the years ended as of December 31, 2019 and 2018, the average number of personnel was as follows:
| Items | DEC'19 | DEC'18 |
|---|---|---|
| Employees | 364 | 362 |
| Production personnel | 156 | 149 |
| 520 | 511 | |
As of 31 December, 2019 and 2018, the captions "Other Expenses" and "Other Gains" were as follows:
| Other gains | DEC'19 | DEC'18 |
|---|---|---|
| Lease equipment | 13.439.571 | 13.139.312 |
| Rents charged (Note 6) | 3.545.189 | 3.330.919 |
| Subsidies | 3.128.618 | 2.839.935 |
| Advertising expenses and sales promotion recovered | 555.141 | 4.327.131 |
| Gains on inventories | 67.648 | 70.456 |
| Gains on fixed assets | 1.453.036 | 1.823.358 |
| Investements subsidies | 2.204 | 472.707 |
| Obtained cash discounts | 5.755 | 8.682 |
| Other | 17.088.131 | 15.002.429 |
| 39.285.293 | 41.014.930 | |
The caption Other refers provided services and warranties' recovery.
| DEC'19 | DEC'18 |
|---|---|
| 597.688 | 630.805 |
| - | 353.307 |
| 29.268 | 66.554 |
| 7.560 | 5.562 |
| 61.795 | 171.531 |
| 5.898 | 4.500 |
| 9.419.566 | 11.095.493 |
| 10.123.588 | 12.327.753 |
The caption Other Expenses includes trade incentives and bonuses granted to dealers.
As of 31 December, 2019 and 2018, the captions "Financial Income" and "Financial Expenses" were as follows:
| Interest and similar income | DEC'19 | DEC'18 |
|---|---|---|
| Interest | 51 | 73 |
| Other | 4.532 | 183.268 |
| 4.583 | 183.341 | |
| Interest and similar expenses | DEC'19 | DEC/2017 |
|---|---|---|
| Interest | 1.322.167 | 1.517.914 |
| Other | 550.987 | 725.459 |
| 1.873.154 | 2.243.373 | |
We present below a summary table of the Company's financial instruments as of December 31, 2019 and 2018:
| Financial assets and liabilities | Financial assets | Financial liabilities | |||
|---|---|---|---|---|---|
| Note | DEC'19 | DEC'18 | DEC'19 | DEC'18 | |
| Other financial investments | 10 | 2.014.792 | 3.492.302 | ||
| Accounts receivable | 12 | 72.522.678 | 110.786.784 | ||
| Other accounts receivable | 13 | 4.453.817 | 3.629.670 | ||
| Loans | 17 | 40.924.381 | 70.882.693 | ||
| Other accounts payable | 19 | 297.125 | 336.245 | ||
| Accounts payable | 18 | 33.586.141 | 35.020.440 | ||
| Other current liabilities | 20 | 16.803.918 | 19.184.760 | ||
| Cash and cash equivalents | 4 | 9.465.441 | 15.003.395 | ||
| Financial assets and liabilities at fair value | Financial assets | ||
|---|---|---|---|
| Note | DEC'19 | DEC'18 | |
| Other financial investments | 10 | 2.014.792 | 3.492.302 |
Due and payable balances with Group and Associated companies, which, as of 31 December 2019 and 2018, were recorded in the captions "Accounts receivable", "Accounts payable", "Other financial investments" and " Shareholders", as follows:
| Accounts Receivable Accounts Payable |
31/DEC/2019 40.843.653 -2.050.826 |
31/DEC/2018 78.824.686 -1.321.795 |
|---|---|---|
| Shareholders | ||
| - RETGS's Companies (Note 13) . Saltano, SGPS, S.A. . Caetano Renting, S.A. . Caetano Auto, S.A. |
-577.627 4.896.180 --------------- 4.318.553 |
139.134 -501.835 3.953.145 ------------- 3.590.444 |
| Other Financial Investments (Note 10) | ||
| .Saltano, SGPS, S.A. .Caetano Auto, S.A. |
3.432.799 1.995.192 |
Accounts Receivable and Accounts Payable (Notes 12 and 18)
(Amounts in Euros)
Balances and transactions details between Toyota Caetano Portugal and Related Parties can be summarized as follows:
| 2019 | Commercial debt | Products | Fixed assets | Services | Others | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Receivable | Payable | Sales | Purchases Acquisitions | Disposals | Rendered | Obtained | Expenses | Gains | ||
| Caetano Auto, S.A. | 39.241.901 | -993.783 -151.379.592 | 580.513 | 0 | -2.159.880 | 0 | 6.320.462 | 10.740.717 | -2.090.962 | |
| Caetano Renting, S.A. | 723.158 | -1.057.043 | -9.237.624 | 23.331.616 | 0 | -56.349 | 0 | 901.811 | 321.182 | -174.290 |
| Caetano Auto CV, SA | 518.595 | 0 | -6.433.280 | 0 | 0 | 0 | 0 | 0 | 0 | -369.749 |
| 2018 | Commercial debt | Products | Fixed assets | Services | Others | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivable | Payable | Sales | Purchases Acquisitions | Disposals | Rendered | Obtained | Expenses | Gains | |||
| Caetano Auto, S.A. | 74.871.686 | -1.321.740 -160.336.778 | 469.699 | 0 | -2.277.574 | 0 | 6.863.145 | 11.762.310 | -1.703.483 | ||
| Caetano Renting, S.A. | 1.813.072 | -55 | -9.658.093 | 14.954.154 | 0 | -134.115 | 0 | 83.536 | 987.519 | -411.997 | |
| Caetano Auto CV, SA | 2.139.613 | 0 | -8.792.313 | 0 | 0 | 0 | 0 | 0 | 0 | -523.499 | |
| Saltano - Investimentos e Gestão, Sgps, S.A. | 27 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -22 |
Intercompany balances and transactions related with accounts receivable and payable were as follows:
| Other related companies | Commercial debt | Products | Fixed assets | Services | Others | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Receivable | Payable | Sales | Purchases Acquisitions | Disposals | Rendered | Obtained | Expenses | Gains | ||
| Amorim, Brito & Sardinha, Lda | 738,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 | -7.200,00 |
| Atlântica - Companhia Portuguesa de Pesca, S.A. | 5.173 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Caetano Active, S.A. | 675 | 0 | -676 | 0 | 0 | 0 | 0 | 0 | 0 | -322 |
| Caetano Aeronautic, S.A. | 137.013 | 0 | -2.096 | 0 | 0 | -6.000 | 0 | 210.938 | 210.938 | -685.061 |
| Caetano Baviera - Comércio de Automóveis, S.A. | 28.220 | -4.398 | -10.366 | 1.418 | 0 | 0 | 0 | 5.350 | 7.035 | -235.740 |
| Caetano City e Active (Norte), S.A. | 716.446 | -62.466 | -3.282.101 | 983 | 0 | -153.757 | 0 | 113.747 | 250.266 | -1.514 |
| Caetano Drive, Sport e Urban, S.A. | 2.346 | 0 | -2.070 | 0 | 0 | 0 | 0 | 0 | 0 | -6.217 |
| Caetano Energy, S.A. | 309 | 0 | -2.400 | 0 | 0 | 0 | 0 | 0 | 0 | -3.389 |
| Caetano Formula Cádiz, SLU | 374 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -374 |
| Caetano Formula East África, S.A. | 0 | 0 | -35 | 0 | 0 | 0 | 0 | 0 | 0 | -2.490 |
| Caetano Formula Galicia, SLU | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -130 |
| Caetano Fórmula West África, S.A. | 143 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -270 |
| Caetano Fórmula, S.A. | 2.567 | 0 | -3.673 | 0 | 0 | 0 | 0 | 0 | 0 | -6.117 |
| Caetano Mobility, SGPS, SA | 57 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -46 |
| Caetano Motors Cádiz, SLU | 220 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -220 |
| Caetano Motors, S.A. | 2.960 | 0 | -4.225 | 0 | 0 | 0 | 0 | 0 | 0 | -3.648 |
| Caetano Move África, S.A. | 21 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -261 |
| Caetano Parts, Lda. | 1.810 | -221 | -1.236 | 455 | 0 | 0 | 0 | 741 | 741 | -2.662 |
| Caetano Power, S.A. | 1.174 | 0 | -3.146 | 0 | 0 | 0 | 0 | 0 | 0 | -2.287 |
| Caetano Retail España, S.A.U. | 124.316 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -126.185 |
| Caetano Retail, S.G.P.S., S.A. | 168.172 | 0 | -605 | 0 | 0 | 0 | 0 | 0 | 0 | -304.996 |
| Caetano Squadra África, S.A. | 21 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -60 |
| Caetano Star, S.A. | 10.372 | -60 | -1.285 | 0 | 0 | 0 | 0 | 49 | -746 | -19.108 |
| Caetano Technik, S.A. | 1.032 | 0 | -1.108 | 0 | 0 | 0 | 0 | 0 | 0 | -1.795 |
| CaetanoBus - Fabricação de Carroçarias, S.A. | 2.639.534 | -287.391 | -97.038 | 1.350 | 0 | -150 | 0 | 95.634 | 99.427 | -2.447.559 |
| Caetsu Publicidade, S.A. | 7.745 | -1.247.660 | -12.928 | 0 | 0 | 0 | 0 | 3.559.300 | 0 | -10.621 |
| Carplus - Comércio de Automóveis, S.A. | 1.381 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17.138 |
| Choice Car, S.A. | 5.237 | 0 | 0 | 0 | 0 | 0 | 0 | 16.014 | 16.014 | -40.684 |
| COCIGA - Construções Civis de Gaia, S.A. | 4.235 | -134.104 | 0 | 0 | 606.082 | 0 | 0 | 112.014 | 131.455 | -11.473 |
| Covim - Soc. Agrícola, Silvícola e Imobiliária, S.A. | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.000 | 2.000 | 0 |
| Finlog - Aluguer e Comércio de Automóveis, S.A. | 106.248 | -49.213 | -446.101 | 977.366 | 0 | 0 | 0 | 617.044 | 696.090 | -106.376 |
| Fundação Salvador Caetano | 10 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -224 |
| Grupo Salvador Caetano, (S.G.P.S.), S.A. | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.150 | 4.150 | -34 |
| Guérin - Rent-a-Car (Dois), Lda. | 444.867 | -2.761 | -73.854 | 0 | 0 | 0 | 0 | 2.321 | 2.321 | -378.260 |
| Guérin - Rent-a-Car SLU | 2.432 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.432 |
| Hyundai Portugal, S.A. | 2.495 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -51.416 |
| Lidera Soluciones, S.L. | 4.262 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.061 |
| Lusilectra - Veículos e Equipamentos, S.A. | 74.528 | -18.556 | -84.317 | 20.586 | 71.245 | 0 | 0 | 126.896 | 133.636 | -58.449 |
| MDS Auto - Mediação de Seguros, S.A. | 1.827 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.498 |
| Movicargo - Movimentação Industrial, Lda. | 2.661 | -316.544 | 0 | 875.365 | 0 | 0 | 0 | 608.243 | 671.325 | -15.336 |
| P.O.A.L. - Pavimentações e Obras Acessórias, S.A. | 17.806 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Portianga - Comércio Internacional e Participações, S.A. | 337.727 | -324.941 | -407.819 | 0 | 0 | 0 | 0 | 274.710 | 274.710 | -87.931 |
| RARCON - Arquitectura e Consultadoria e Mediação Imobiliária, S.A. | 0 | -59.697 | -17.943 | 0 | 54.087 | 0 | 0 | 147.756 | 147.756 | -256 |
| Rigor - Consultoria e Gestão, S.A. | 86.835 | -767.511 | 0 | 0 | 32.826 | 0 | 0 | 2.159.816 | 2.182.324 | -256.077 |
| Robert Hudson, LTD | 0 | 0 | -834 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Salvador Caetano Auto África, (S.G.P.S.), S.A. | 39 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -91 |
| Salvador Caetano Auto, (S.G.P.S.), S.A. | 21 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -94 |
| Salvador Caetano Equipamentos, S.A. | 10 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -9 |
| SIMOGA - Sociedade Imobiliária de Gaia, S.A. | 1.374 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sózó Portugal, S.A. | 8.528 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -22.430 |
| Toyota Motor Corporation | 332.366 | -4.404.755 | 0 | 42.819.077 | 0 | 0 | 0 | 136.758 | 478.025 | -165.556 |
| Toyota Motor Europe, Nv/Sa | 3.501.528 | -15.848.490 | -45.547.690 | 220.102.773 | 30.000 | 0 | 0 | 535.174 | 667.361 | -4.144.481 |
| Turispaiva - Sociedade Turística Paivense, S.A. | 369 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.600 |
| VAS África (S.G.P.S.), S.A. | 21 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -34 |
As of 31 December, 2019 and 2018, Toyota Caetano had assumed the following financial commitments:
| Responsabilities | DEC'19 | DEC'18 |
|---|---|---|
| Security guarantee | 4.000.000 | 4.000.000 |
| Other guaranties | 1.668.010 | 1.692.296 |
| 5.668.010 | 5.692.296 | |
The financial commitments classified Security Guarantee include guarantee on imports provided to Customs Agency.
As a result of loans amounting to 15 million Euros Toyota Caetano granted the respective financial institutions mortgages on properties valued at the time of the referred loans, approximately 23,4 million Euros.
The judicial claim presented by a former agent, that was pending a decision of the appeal presented in Supreme Court, was concluded without any, as was expected by the Board of Directors, responsibility to the Company.
In September 2000 the European Commission voted on a directive regarding end-of-life vehicles and the responsibility of Producers/Distributors for dismantling and recycling them.
Producers/Distributors will have to bear at least a significant part of the cost of the take back of vehicles put on the market as of July 1, 2002 and from January 1, 2007 for vehicles put on the market.
This legislation will impact Toyota vehicles sold in Portugal. Toyota Caetano and Toyota are closely monitoring the development of Portuguese National Legislation in order to access the impact on their financial statements.
Is our conviction in face of the studies already done into the Portuguese market, and taking notice on the possible valorization of the residues from the end-of-life vehicles dismantling, that the effective impact of this legislation in the Company accounts will be reduced or null.
Meanwhile and according to the legislation introduced (Dec./Law 196/2003), the Company contracted with "ValorCar – Sociedade de Gestão de Veículos em Fim de Vida, Lda" - a licensed entity for the management of an integrated system of ELV- the transfer of the responsibilities in this process.
The company adopts the necessary measures relating to the environment, aiming to fulfil current applicable legislation.
(Amounts in Euros)
The Toyota Caetano Board of Directors does not estimate that there are risks related to the environmental protection and improvement, not having received any infraction related to this matter during 2019.
The earnings per share for the year ended as of December 31, 2019 and 2018 were computed based on the following amounts:
| DEC'19 | DEC'18 | |
|---|---|---|
| Net income | 11.593.984 | 12.786.759 |
| Number shares | 35.000.000 | 35.000.000 |
| Earnings per share (basic and diluted) | 0,33 | 0,37 |
| Comprehensive income | 11.593.984 | 12.786.759 |
| Number shares | 35.000.000 | 35.000.000 |
| Comprehensive income (basic and diluted) | 0,33 | 0,37 |
The remuneration of the board members in Toyota Caetano Portugal, S.A. during the years 2019 and 2018, was as follows:
| Board Members | DEC'19 | DEC'18 |
|---|---|---|
| Board of Directors | 464.940 | 384.724 |
| Board of Auditors | 8.520 | 8.400 |
The remuneration of the Statutory Auditor, PricewatherhouseCoopers & Associados – S.R.O.C., Lda. for 2019 and 2018, was as follows:
| DEC'19 | DEC'18 | |
|---|---|---|
| Total fees related statutory audit | 25.000 | 25.000 |
| Total fees for limited accounts review | 3.000 | 3.000 |
| Total fees for other services of fiability assurance | 1.000 | 1.000 |
| 29.000 | 29.000 | |
(Amounts in Euros)
Since the end of 2019, we could not disclose this attachment without clarifying that it was prepared before the declaration by the WHO of the State of Pandemic.
Aware of the economic and financial reflexes that will be experienced in Portugal from March 2020, which will have inherently negative effects on the activity / profitability of the Company during economic exercise 2020 and not being possible at this moment to quantify it, it is important to mention that are available unused bank credit lines of over 50 M€, thus ensuring, in our view, the continuity of operations for at least a 12-month period.
The financial statements were approved by the Board of Directors on 17th March 2020. According to the Portuguese Commercial Companies Code, it is possible the amendment of these Financial Statements, after their approval by the Board of Directors
CHARTERED ACCOUNTANT ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA BOARD OF DIRECTORS
JOSE REIS DA SILVA RAMOS –President MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
December 2019
| DEZ'19 | DEZ '18 | |
|---|---|---|
| VENDAS | 465.118.555 | 446.874.810 |
| CASH-FLOW BRUTO | 43.434.675 | 41.700.225 |
| ENCARGOS FINANCEIROS LÍQUIDOS | 1.946.586 | 1.502.881 |
| GASTOS COM O PESSOAL | 41.370.929 | 41.164.197 |
| INVESTIMENTO LIQUIDO | 22.137.091 | 36.210.335 |
| VOLUME DE EMPREGO | 1.537 | 1.529 |
| RESULTADO LIQUIDO COM INT MINORITARIOS | 11.646.599 | 12.872.564 |
| RESULTADO LIQUIDO SEM INT MINORITARIOS | 11.593.984 | 12.786.760 |
| GRAU DE AUTONOMIA FINANCEIRA | 46,00% | 43,08% |
| ASSETS | Notes | 31/12/2019 | 31/12/2018 |
|---|---|---|---|
| NON-CURRENT ASSETS: | |||
| Goodwill Intangible assets Tangible fixed assets Investment properties Instruments at fair value through capital Deferred tax assets Accounts receivable |
8 5 6 7 9 14 11 |
611.997 465.385 110.019.605 13.676.728 3.923.974 2.611.486 608.975 |
611.997 360.364 112.792.692 14.330.714 3.633.413 2.834.930 494.293 |
| Total non-current assets | 131.918.150 | 135.058.403 | |
| CURRENT ASSETS: Inventories Accounts receivable Other debtors Income tax receivable Other current assets Cash and cash equivalents Total current assets |
10 11 12 21 13 15 |
105.470.028 54.236.551 2.538.178 262.011 3.380.652 12.693.644 178.581.064 |
99.059.426 56.709.522 5.818.605 - 6.331.380 17.075.155 184.994.088 |
| Total assets | 310.499.214 | 320.052.491 | |
| SHAREHOLDERS' EQUITY & LIABILITIES | |||
| EQUITY: Share capital Legal reserve Revaluation reserves Translation reserves Fair value reserves - Instruments at fair value through capital Other reserves Net income Non-controlling interests |
16 17 |
35.000.000 7.498.903 6.195.184 (1.695.238) 883.196 81.848.327 11.593.984 141.324.356 1.514.227 |
35.000.000 7.498.903 6.195.184 (1.695.238) 552.731 76.061.568 12.786.759 136.399.907 1.473.222 |
| Total equity | 142.838.583 | 137.873.129 | |
| LIABILITIES: NON-CURRENT LIABILITIES: Loans Pension Fund defined benefit plan liabilities Provisions Deferred tax liabilities Total non-current liabilities |
18 23 24 14 |
36.880.225 9.476.000 944.772 1.500.361 48.801.358 |
38.465.142 8.886.983 881.547 1.602.616 49.836.288 |
| CURRENT LIABILITIES: Loans Accounts payable Other creditors Income tax payable Other current liabilities Pension Fund defined benefit plan liabilities Total current liabilities |
18 19 20 21 22 23 |
7.353.166 38.236.935 51.854.470 - 21.414.702 - 118.859.273 |
52.538.913 39.907.558 14.783.849 1.939.181 22.734.556 439.017 132.343.074 |
| Total liabilities | 167.660.631 | 182.179.362 | |
| Total liabilities and shareholder' equity | 310.499.214 | 320.052.491 |
The notes to the financial statements integrate this statement for the period ending at 31 December 2019.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS – President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
(Amounts expressed in Euros)
| CONSOLIDATED CASH FLOWS STATEMENT AT 31 DECEMBER 2019 AND 2018 |
|---|
| ---------------------------------------------------------------- |
| (Amounts in Euros) | ||||||
|---|---|---|---|---|---|---|
| Notes | 31/12/2019 | 31/12/2018 | ||||
| Operating Income: | ||||||
| Sales | 28 | 430.412.161 | 418.479.481 | |||
| Services rendered | 28 | 34.706.394 | 28.395.329 | |||
| Other operating income | 31 | 41.542.049 | 50.584.045 | |||
| Variation of products | 10 | 1.132.517 | (3.397.773) | |||
| 507.793.121 | 494.061.082 | |||||
| Operating expenses: | ||||||
| Cost of sales | 10 | (372.525.191) | (362.262.995) | |||
| External supplies and services | 29 | (44.570.681) | (42.314.240) | |||
| Payroll expenses | 30 | (41.370.929) | (41.164.197) | |||
| Depreciations and amortizations | 5, 6 and 7 | (25.168.581) | (23.423.309) | |||
| Impairment losses in inventories | 24 | (1.445.801) | (849.544) | |||
| Impairment losses in accounts receivable | 24 | (784.560) | (113.138) | |||
| Other provisions and Impairment losses | 24 | (217.780) | (495.968) | |||
| Other operating expenses | 31 | (3.416.913) | (4.300.431) | |||
| (489.500.436) | (474.923.822) | |||||
| Operational Income | 18.292.685 | 19.137.260 | ||||
| Expense and financial losses | 32 | (1.971.661) | (1.856.395) | |||
| Income and financial gains | 32 | 25.075 | 353.513 | |||
| Profit before taxation | 16.346.099 | 17.634.378 | ||||
| Income tax for the year | 25 | (4.699.500) | (4.761.815) | |||
| Net profit for the period | 11.646.599 | 12.872.563 | ||||
| Net profit for the period attributable to: | ||||||
| Equity holders of the parent | 11.593.984 | 12.786.759 | ||||
| Non-controlling interests | 52.615 | 85.804 | ||||
| 11.646.599 | 12.872.563 | |||||
| Earnings per share: | ||||||
| Basic | 0,333 | 0,368 | ||||
| Diluted | 0,333 | 0,368 |
The notes to the financial statements integrate this statement for the period ending at 31 December 2019.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS – President MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
| Equ ity ibu tab le t o th attr nt c e p are om pan y |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No tes |
Sh are Ca ital p |
Leg al Re ser ve |
Rev alu atio n Re ser ves |
Tra nsl atio n Re ser ves |
Fai lue r va Re ser ves |
Oth er Re ser ves |
Tot al Re ser ves |
Ne t Pro fit |
Su bto tal |
No roll ing ont n-c Inte ts res |
Tot al |
|
| Ba lan 31 of De ber 20 17 at ces cem |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
( 1.6 95. 238 ) |
651 .81 8 |
73. 723 .26 3 |
86. 373 .93 0 |
9.3 38. 305 |
130 .71 2.2 35 |
1.3 87. 418 |
132 .09 9.6 53 |
|
| Ch in t he iod ang es per : Ap lica tion of the lida ted t in e 2 017 p co nso ne com Fai lue ch of I t fa ir v alu e th h c ital nst ent r va ang es rum s a rou g ap |
9 | - - |
- - |
- - |
- - |
- ( ) 99. 087 |
9.3 38. 305 - |
9.3 38. 305 ( ) 99. 087 |
( ) 9.3 38. 305 - |
- ( ) 99. 087 |
- - |
- ( ) 99. 087 |
| Co lida ted ofit for the riod t pr nso ne pe |
- | - | - | - | - | - | - | 12. 786 .75 9 |
12. 786 .75 9 |
85. 804 |
12. 872 .56 3 |
|
| Tra ctio wit h e ity hol der nsa ns qu s Dis trib d d ivid end ute s |
16 | - | - | - | - | - | ( 7.0 00. 000 ) |
( 7.0 00. 000 ) |
- | ( 7.0 00. 000 ) |
- | ( 7.0 00. 000 ) |
| Ba lan of De ber at 31 20 18 ces cem |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
( ) 1.6 95. 238 |
552 .73 1 |
76. 061 .56 8 |
88. 613 .14 8 |
12. 786 .75 9 |
136 .39 9.9 07 |
1.4 73. 222 |
137 .87 3.1 29 |
|
| Ba lan at 31 of De ber 20 18 ces cem |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
( 1.6 95. 238 ) |
552 .73 1 |
76. 061 .56 8 |
88. 613 .14 8 |
12. 786 .75 9 |
136 .39 9.9 07 |
1.4 73. 222 |
137 .87 3.1 29 |
|
| Ch in t he iod ang es per : Ap lica tion of the lida ted t in e 2 018 p co nso ne com Fai lue ch of I t fa ir v alu e th h c ital nst ent r va ang es rum s a rou g ap |
9 | - - |
- - |
- - |
- - |
- 330 .46 5 |
12. 786 .75 9 - |
12. 786 .75 9 330 .46 5 |
( 12. 786 .75 9) - |
- 330 .46 5 |
- - |
- 330 .46 5 |
| Co lida ted ofit for the riod t pr nso ne pe |
- | - | - | - | - | - | - | 11. 593 .98 4 |
11. 593 .98 4 |
52. 615 |
11. 646 .59 9 |
|
| Tra ctio wit h e ity hol der nsa ns qu s Acq uis itio f no roll ing int ont sts n o n-c ere Dis trib d d ivid end ute s |
16 | - - |
- - |
- - |
- - |
- - |
- ( 7.0 00. 000 ) |
- ( 7.0 00. 000 ) |
- - |
- ( 7.0 00. 000 ) |
( 11. 610 ) - |
( 11. 610 ) ( 7.0 00. 000 ) |
| Ba lan at 31 of De ber 20 19 ces cem |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
( 1.6 95. 238 ) |
883 .19 6 |
81. 848 .32 7 |
94. 730 .37 2 |
11. 593 .98 4 |
141 .32 4.3 56 |
1.5 14. 227 |
142 .83 8.5 83 |
The notes to the financial statements integrate this statement for the period ending at 31 December 2019.
CHARTERED ACCOUNTANTALEXANDRA MARIA PACHECO GAMA JUNQUEIRA
BOARD OF DIRECTORS JOSE REIS DA SILVA RAMOS –President MARIA ANGELINA MARTINS CAETANO RAMOSSALVADOR ACÁCIO MARTINS CAETANOMIGUEL PEDRO CAETANO RAMOSKATSUTOSHI NISHIMOTOMATTHEW PETER HARRISONRUI MANUEL MACHADO DE NORONHA MENDES
| (Amounts expressed in Euros) | ||||||
|---|---|---|---|---|---|---|
| Notes | 31/12/2019 | 31/12/2018 | ||||
| Consolidated net profit for the period, including non-controlling interests | 11.646.599 | 12.872.563 | ||||
| Components of other consolidated comprehensive income, | ||||||
| that could not be recycled by profit and loss: | ||||||
| Instruments at fair value through capital changes | 9 | 330.465 | (99.087) | |||
| 330.465 | (99.087) | |||||
| Consolidated comprehensive income | 11.977.064 | 12.773.476 | ||||
| Attributable to: | ||||||
| Equity holders of the parent company | 11.924.449 | 12.687.672 | ||||
| Non-controlling interests | 52.615 | 85.804 |
The notes to the financial statements integrate this statement for the period ending at 31 December 2019.
CHARTERED ACCONTANT BOARD OF DIRECTORS
ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS – President MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
(Amounts in Euros)
| OPERATING ACTIVITIES | Dec-19 | Dec-18 | ||||
|---|---|---|---|---|---|---|
| Collections from Customers Payments to Suppliers Payments to Employees |
Operating Flow | 570.499.446 (471.202.261) (35.993.325) |
63.303.859 | 545.543.957 (460.040.730) (32.573.673) |
52.929.555 | |
| Payments of Income Tax Other Collections/Payments Related to Operating Activities |
(7.050.561) (12.797.985) |
(5.093.294) (24.889.329) |
||||
| Cash Flow from Operating Activities | 43.455.313 | 22.946.932 | ||||
| INVESTING ACTIVITIES | ||||||
| Collections from: Investments Properties Tangible Fixed Assets Interest and Other income Dividends |
284.000 3.140.426 28.499 - |
3.452.925 | 2.220.000 672.382 12.554 339.700 |
3.244.636 | ||
| Payments to: Investments Properties Tangible Fixed Assets Intangible Assets |
(444.769) (4.007.343) (289.371) |
(4.741.483) | (20.775) (4.793.391) (153.701) |
(4.967.867) | ||
| Cash Flow from Investment Activities | (1.288.558) | (1.723.231) | ||||
| FINANCING ACTIVITIES | ||||||
| Collections from: Loans Leases |
93.162.682 434.563 |
93.597.245 | 306.483.075 - |
306.483.075 | ||
| Payments to: Loans Leases Interest and Other costs Dividends |
(122.400.000) (8.405.927) (2.465.234) (7.016.060) |
(140.287.220) | (310.983.075) (7.731.336) (2.189.704) (6.995.076) |
(327.899.191) | ||
| Cash Flow from Financing Activities | (46.689.975) | (21.416.116) | ||||
| CASH | ||||||
| Cash and Cash Equivalents at Beginning of Period (Note 15) Changes in perimeter (Note 4) |
17.075.155 (20.974) |
17.267.570 - |
||||
| Cash and Cash Equivalents at End of Period (Note 15) | 12.530.961 | 17.075.155 | ||||
| Net Flow in Cash Equivalents | (4.523.220) | (192.415) |
The annex integrates this Consolidated Cash Flows Statement at 31 December 2019.
CHARTERED ACCONTANT BOARD OF DIRECTORS
ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS – President MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
(Amounts in Euros)
Toyota Caetano Portugal, S.A. ("Toyota Caetano" or "Company") was incorporated in 1946, has its headquarters in Vila Nova de Gaia, and is the Parent Company of a Group of companies ("Toyota Caetano Group" or "Group"), which mainly develop economic activities included in the automotive sector, namely the import, assembly and commercialization of vehicles, bus and coach industry, sale and rental of industrial equipment forklifts, sale of vehicles parts, as well as the corresponding technical assistance, creation and operation of training projects and development of human resources, as well the management and rental of own properties, and rental of short or longterm vehicles, with or without driver.
Toyota Caetano Portugal, S.A., belongs to the Salvador Caetano Group (led by Grupo Salvador Caetano S.G.P.S., S.A.), being held directly by Salvador Caetano Auto, S.G.P.S., S.A., since the end of the year of 2016.
Toyota Caetano is the distributor of the brands Toyota, Lexus and BT in Portugal and is the head of a group of companies ("Toyota Caetano Group").
As of December 31, 2019, the companies of Toyota Caetano Group, their headquarters and abbreviations used, are as follows:
| Companies | Headquarters |
|---|---|
| With headquarters in Portugal: | |
| Toyota Caetano Portugal, S.A. | Vila Nova de Gaia |
| Caetano Renting, S.A. | Vila Nova de Gaia |
| Caetano Auto, S.A. | Vila Nova de Gaia |
| With headquarters in foreign countries: | |
| Caetano Auto CV, S.A. | Praia (Cape Verde) |
During the period ended December 31, 2019, there was a change in the composition of the consolidation perimeter with the liquidation of Saltano in May, 2019.
Toyota Caetano shares are listed in Euronext Lisbon since October 1987.
The attached financial statements are stated in Euros (rounding by unit), as this is the functional currency used in the economic environment where the Group operates. Foreign operations and transactions are included in the consolidated financial statements in accordance with the policy described in Note 2.2 b).
The main accounting policies adopted in the preparation of the consolidated financial statements are as follows:
These financial statements relate to the consolidated financial statements of Toyota Caetano Group and were prepared according to the IFRS – International Financial Reporting Standards, as issued by the International Accounting Standards Board ("IASB"), the International Accounting Standards (IAS), as issued by the International Accounting Standards Committee ("IASC"), and its respective interpretations - IFRIC and SIC, as issued, respectively, by the International Financial Reporting Interpretations Committee ("IFRIC") and by the Standing
1
Interpretation Committee ("SIC"), that have been endorsed by the European Union, being effective for the annual periods beginning on or after January 1, 2019.
The accompanying consolidated financial statements have been prepared on a going concern basis and having as basis the principle of the historical cost and, in the case of some financial instruments, fair value, based on the accounting records of the companies included in consolidation (Note 4).
The impact of the adoption of the new standards, amendments to standards and interpretations that became effective as of January 1, 2019, that have been endorsed by the European Union:
(i) Standards:
(Amounts in Euros)
Annual Improvements 2015 – 2017. The 2015-2017 annual improvements impact: IAS 23, IAS 12, IFRS 3 and IFRS 11. These improvements did not have any impact in the Group financial statements.
IFRIC 23 (new), 'Uncertainty over income tax treatment'. This is an interpretation of IAS 12 - 'Income tax' and refers to the measurement and recognition requirements to be applied when there is uncertainty as to the acceptance of an income tax treatment by the tax authorities. In the event of uncertainty as to the position of the tax authority on a specific transaction, the entity shall make its best estimate and record the income tax assets or liabilities under IAS 12, and not under IAS 37 – 'Provisions, contingent liabilities and contingent assets', based on the expected value or the most probable value. The application of IFRIC 23 may be retrospective or retrospective modified. This interpretation did not have any impact in the Group financial statements.
• IAS 1 and IAS 8 (amendment), 'Definition of material' (effective for annual periods beginning on or after January 1, 2020). This amendment is still subject to endorsement by the European Union. The amendment revises the concept of material. Includes clarifications as to obscured information, its effect being like the omission or distortion of information. The group should assess materiality considering the financial statements as a whole. There are also some clarifications as to the term 'primary users of general purpose financial statements', defined as 'existing or potential investors, lenders and other creditors' that rely on general purpose financial statements to obtain a significant part of the information that they need. It is not expected significant impact of future adoption of this amendment on the Group financial statements.
Conceptual framework, 'Amendments to references in other IFRS' (effective for annual periods beginning on or after January 1, 2020). As a result of the publication of the new Conceptual Framework, the IASB introduced changes to the text of various standards and interpretations, like: IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, SIC 32, in order to clarify the application of the new definitions of asset / liability and expense / income, in addition to some of the characteristics of financial information. These amendments are retrospective, except if impractical. It is not expected significant impact of future adoption of this amendment on the Group financial statements.
(Amounts in Euros)
In accordance with the transitional provisions of IFRS 16, the Group chose to apply the "modified retrospective" on the date of initial adoption (January 1, 2019); comparative of the Financial Statements values were not restated.
The new IFRS 16 standard eliminated the classification of leases between operating or financial leases for lessee entities, as provided for in IAS 17. Instead, it introduced a single accounting model, very similar to the treatment that was given to financial leases in the accounts of tenants.
(Amounts in Euros)
This model establishes, for the lessee, the recognition of:
The Group adopted this new standard as of January 1, 2019, having applied the modified retrospective method, with assets equal to liabilities, so it did not restate the comparative accounts for the year 2018, with no impact on the company's equity at the Group Company at the time of transition.
The Group's operating leases relate mainly to stand rental contracts. Regarding previous commitments with operating leases, on the transition, the Group recognized on January 1, 2019, in its Statement of Financial Position, rights of use in the amount of 2.084.991 euros and liabilities for lease in the same amount.
Regarding previous commitments with financial leases, in the transition, the book values of assets and liabilities per lease as at December 31, 2018 (43.395.132 and 52.538.913 euros, respectively) were assumed as right-of-use asset and liabilities for lease in accordance with IFRS 16 to January 1, 2019.
The impact of the adoption of the new IFRS 16 standard on the opening balances on January 1, 2019 was as follows:
| 31/12/2018 | IFRS | 01/01/2019 | |
|---|---|---|---|
| Non-Current Assets Tangible fixed assets |
43.395.132 | 2.084.991 | 45.480.123 |
| Current Liabilities Loans - Leases |
52.538.913 | 2.084.991 | 54.623.904 |
The impact of the adoption of the new IFRS 16 standard in the statement of financial position, in the income statement, in the statement of the comprehensive income and in the cash flows statement at December 31, 2019 is presented as follows:
| 31/12/2019 (without IFRS effect) |
IFRS | 31/12/2019 | |
|---|---|---|---|
| Statement of Financial Position Non-Current Assets |
|||
| Tangible fixed assets | 109.232.035 | 787.570 | 110.019.605 |
| Current Liabilities Loans - Leases |
6.565.596 | 787.570 | 7.353.166 |
| Income Statement External supplies and services |
45.868.103 | (1.297.422) | 44.570.681 |
| Depreciations and amortizations | 23.871.159 | 1.297.422 | 25.168.581 |
| 31/12/2019 (without IFRS effect) |
IFRS | 31/12/2019 | |
|---|---|---|---|
| Cash flows Statement | |||
| Operating activities | |||
| Payments to suppliers | (472.499.683) | 1.297.422 | (471.202.261) |
| Financing activities Payments to: |
|||
| Leases | - | (1.297.422) | (1.297.422) |
Consolidation principles used by the Group were as follows:
Investments in companies in which the Group is exposed, or has voting rights, to variable returns as a result of their involvement in these companies and has the ability to affect those returns through the power of these companies (definition of control used by the Group), were included in the consolidated financial statements by the full consolidation method. Equity and net results corresponding to third parties participations in those companies are recorded separately in the consolidated statement of financial position and in the consolidated income statement under the caption "Non-controlling interests". Fully consolidated companies are listed in Note 4.
When losses attributable to minority shareholders exceed non-controlling interests in shareholder's equity, the Group absorbs the excess, in proportion to the percentage held.
(Amounts in Euros)
For business combinations, earlier than 2010, it was adopted the purchase method to account for subsidiary's acquisitions. The acquisition cost corresponds to the fair value, determined at the acquisition date, of the assets given, equity instruments issued and liabilities incurred or assumed. The identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are initially recognized at fair value on the acquisition date, irrespective of the existence of non-controlling interests. The surplus in the cost of acquisition relating to the fair value of the parcel of the Group of the assets identifiable acquired are registered as Goodwill. If the cost of acquisition is lower than the fair value of the net assets of the acquired subsidiary, the difference is recognized directly in the Consolidated Income Statement.
For business combinations that have occurred on or after January 1, 2010, the Group has applied IFRS 3 Revised. According to the referred standard, the purchase method continues to be considered on business combinations, with the following significant changes:
Whenever the Group already holds a previously acquired investment on the date of acquisition of control, the fair value of that investment contributes to the determination of goodwill or badwill.
It was also applied since January 1, 2010 the IAS 27 reviewed, meanwhile replaced for this purpose by IFRS 10, which requires that all transactions with non-controlling interests to be recognized on Equity, when there is no change on the control of the entity. Also, it isn't recognized goodwill or any profit or loss. When there is a loss of control on the entity, any remaining interest is remeasured at fair value, with a gain or loss being recognized on the consolidated income statement.
The results of Group companies acquired or disposed of during the period are included in the consolidated income statement from the effective date of acquisition or until the date of their disposal.
Adjustments to the financial statements of Toyota Caetano companies are performed, whenever necessary, in order to adapt accounting policies to those used by the Group. Intercompany balances and transactions, and dividends distributed between Group companies have been eliminated in the consolidation process.
Whenever the Group has, in substance, control over other entities created for a specific purpose, even if no share capital interest is directly held in those entities, these are consolidated by the full consolidation method.
(Amounts in Euros)
Assets and liabilities in the financial statements of foreign entities are translated to Euros using the exchange rates in force at the statement of financial position date, and gains and losses as well as cash flows are translated to Euros using the average exchange rates for the year. Exchange rate differences originated after January 1, 2004 are recorded in equity under the caption "Translation reserves". The accumulated exchange differences generated before January 1, 2004 (IFRS transition date) were written-off against the caption "Other reserves".
Whenever a foreign entity is disposed, the accumulated exchange rate differences are recorded in the financial statements as a profit or loss in the disposal.
In 2019 and 2018, the exchange rates used to convert the foreign subsidiary's accounts was 0,009069, as a result of the parity in the Euros / CVE quotation.
The main accounting policies used by Toyota Caetano Group in the preparation of the consolidated financial statements were as follows:
Tangible fixed assets acquired until January 1, 2004 (IFRS transition date) are recorded at deemed cost, which corresponds to its acquisition cost or its revalue acquisition cost in accordance with generally accepted accounting principles in Portugal (and in the subsidiaries countries) until that date, net of accumulated depreciation and accumulated impairment losses.
Tangible fixed assets acquired after that date is recorded at acquisition cost, net of accumulated depreciation and accumulated impairment losses.
The impairment losses detected in the tangible fixed assets realization value are registered in the year in which they are estimated by counterpart of the item "Impairment losses" of the income statement.
Depreciation is computed on straight-line basis as from the date the asset is first used according to the following expected useful lives:
| Years | |
|---|---|
| - Buildings and other constructions | 20 - 50 |
| - Machinery and equipment | 7 - 16 |
| - Vehicles | 4 - 5 |
| - Tools and utensils | 4 - 14 |
| - Administrative equipment | 3 - 14 |
| - Other tangible assets | 4 - 8 |
Expenses with maintenance and repair costs of tangible fixed assets are recorded as a cost in the year in which they occur. The repairs of significant amount that increase the estimated usage period of the assets are capitalized and depreciated according to the assets remaining useful life.
Tangible fixed assets in progress relate to tangible assets under construction/development are recorded at acquisition cost deducted of impairment losses. These assets are transferred to tangible fixed assets and depreciated as from the date in which they are prepared for use and in the necessary conditions to operate according with the management.
Gains or losses arising from the disposal or write-off of tangible fixed assets are computed as the difference between the selling price and the net book value at the date of disposal/write-off are recorded in the statement of profit and loss as "Other operating income" or "Other operating expenses".
From the lessor's perspective, the Group classifies its Lease operations as a finance or operating lease, based on the substance of the transaction instead of its legal form. When the lease is classified as operational, the transport equipment assigned under a lease is recognized in the item "Tangible fixed assets" in the Statement of financial position. These assets are recorded at cost less accumulated depreciation and accumulated impairment losses. At the end of the lease period, the Group sells the vehicles, reclassifying them as inventories (Note 10), until the moment of disposal.
Intangible assets are recorded at acquisition cost, net of accumulated depreciation and accumulated impairment losses. Intangible assets are only recognized if it is likely that future economic benefits will flow to the Group, are controlled by the Group and if their cost can be reliably measured.
Research costs and expenses with new technical knowledge are recorded as expenses in the income statement when incurred.
Development costs are capitalized as an intangible asset if the Group has proven technical feasibility and ability to finish the development and to sell/use such assets and it is likely that those assets will generate future economic benefits. Development expenses which do not fulfil these requirements are recorded as an expense in the period in which they are incurred.
Internal expenses related to software maintenance and development are recorded as expenses in the income statement, except in situations in which these expenses are directly related to projects from which it is likely that future economic benefits will flow to the Group. In such circumstances, these expenses are capitalized as intangible assets.
Intangible assets are amortized on a straight-line basis over a period of three to five years.
The amortization charge for each period of intangible assets shall be recognized in profit or loss in item "Depreciations and amortizations".
(Amounts in Euros)
Investment properties which relate to real estate assets held to obtain income through its lease or for capital gain purposes, and not for use in production, external supplies and services or for administrative purposes, are recorded at its acquisition cost, being the respective fair value disclosed in the Notes to the financial statements (Note 7).
Whenever these assets fair value is lower than the respective acquisition cost, an impairment loss is recorded against the caption "Impairment losses" in the income statement. As of the moment in which the recorded accumulated impairment losses no longer exist, they are immediately reversed against the caption "Impairment losses" in the income statement until the limit of the amount that would have been determined, net of amortizations or depreciations, if no impairment losses would have ever been recognized in previous years.
Investment properties disclosed fair value is determined on an annual basis by an independent appraiser (Market, Cost and Profit Method models).
The Group evaluates at the beginning date of each contract whether it corresponds to a lease contract or whether it contains a lease. In order to assess whether a contract assigns the right to control the use of an identifiable asset for a certain period of time, the Group evaluates whether, during the period of use of the asset, it cumulatively has:
IFRS 16 distinguishes leases and service contracts considering whether is identified an asset that is to be controlled. For all lease contracts is recorded an asset identified with a right to use, and a liability corresponding to the liability for the rents payable, except for short-term (up to 12 months) and low value assets.
The "right to use" is initially measured at cost and subsequently at the net cost of depreciation and impairment, adjusted by remeasurement of the lease liability. The lease liability is initially measured based on the present value of the lease liabilities at the date. Subsequently, the lease liability is adjusted by the financial update of the said amount, as well as the possible changes in the lease agreements.
(Amounts in Euros)
The Group recognizes a right to use an asset and a lease liability on the date the contract enters into force. The right to use an asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made on or before the beginning date, in addition to any initial direct costs incurred, as well as dismantling and removal estimate costs of the underlying asset (if applicable), less any incentives granted.
The right to use an asset is depreciated in twelfths using the straight-line method over its estimated useful life or during the lease term, whichever is the lower.
The right to use an asset is subject to impairment tests when there are signs of loss of value, and any losses detected are recorded immediately in the consolidated income statement for the year.
The lease liability is initially recognized at the present value of rents not yet paid at the date of the lease, discounted at the interest rate implicit in the lease, or, in the event that it is not possible to determine that rate, at the incremental interest rate of the respective subsidiary. In most situations, the Group uses its incremental interest rate as the interest rate to be applied in the calculation referred to above.
The lease payments included in the measurement of the lease liability include the following components:
exercise price of call options, if it is reasonably certain that the lessee will exercise them;
payment of penalties for terminating the contract, if it is reasonably certain that the tenant will cancel the contract.
The lease liability is subsequently measured at amortized cost, using the effective interest rate method, being remeasured when: (i) changes in future payments arising from a change in the rate or index specified in the contract; (ii) a change in the Group's estimate of the amount to be paid as a residual value guarantee, or (iii) if the Group changes its assessment of the exercise of a call option, or of its extension or termination .
When the lease liability is remeasured, the value of the right to use an asset is adjusted by the same amount, except if the amount already recorded for the right to use is reduced to zero. In this case a gain or loss is recorded in consolidated income statement.
In short-term leases and low-value assets, the rents due are recognized on a straight-line basis as an expense in the consolidated income statement over the period of the lease. The commitments at the date of the statement of financial position with the payment of these leases are presented in Note 34.
(Amounts in Euros)
Lease contracts are classified as (i) financial lease contracts, if all or a substantial part of the risks and benefits related to possession are transferred and as (ii) operational lease contracts if all or a substantial part of the risks and benefits related to possession are not transferred.
Classification as financial lease contracts or as operational lease contracts depends on the substance of the transaction and not on the form of the contract.
Tangible fixed assets acquired under financial lease contracts, as well as the corresponding liabilities are recorded according to the financial method and, consequently, the cost of the fixed asset is recorded in tangible fixed assets captions and the corresponding responsibility as leasing captions. Lease down payments are composed by interest expenses and by the amortization of capital, with interests recognized as expenses during the lease term considering a constant periodic interest rate on the remaining balance of the liability, and with a depreciation of the tangible fixed assets according to Note 2.3.a), except when the lease term is shorter than the estimated useful lives.
Goods, raw, subsidiary and consumable materials are recognized at the initial moment of their acquisition at cost. Subsequently, these are valued at average acquisition cost, which is lower than market value.
Finished and intermediate goods as well as work in progress are stated at production cost, which is lower than market value. Production costs include the cost with raw materials, direct labor, production overheads and external services. The cost of finished and intermediate products, as well as products and work in progress, corresponds to their cost of production, which includes the cost of raw materials incorporated in production, labor and general manufacturing costs, based on the normal level of production. The difference in charges capitalized and recognized as these types of inventories between the beginning and the end of the year is recognized as a variation of products in the income statement.
Accumulated impairment losses to reduce inventories value reflect the difference between their acquisition cost and net realizable or market value, which corresponds to the price shown on market statistics.
Government subsidies are recognized at the respective fair value when there is a solid guarantee that they will be received and that the Group will be able to accomplish the conditions required to its concession.
(Amounts in Euros)
The subsidies related to costs incurred are registered as a gain if there is a reasonable guaranty that they will be received, if the Group has already incurred in the subsidiary costs and if they fulfill the conditions for their concession.
Assets are assessed for impairment at each statement of financial position date whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Whenever the carrying amount of an asset exceeds its recoverable amount (defined as the highest of the net sale price and the use value, or as the net sale price for assets held for sale), an impairment loss is recognized in the income statement under the caption "Impairment losses". The net selling price is the amount that would be obtained from the sale of an asset in a transaction between independent entities, less the cost of the disposal. The value in use is the present value of estimated future cash flows expected to arise from the continued use of an asset and its disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or, if not possible, for the cash-generating unit to which the asset belongs.
The reversal of impairment losses recognized in previous years is recorded when it is concluded that the impairment losses recognized for the asset no longer exist or have decreased. This analysis is performed whenever there is an indication that the impairment losses previously recognized have been reversed. The reversal is recorded in the income statement in the caption "Impairment losses". However, the increased carrying amount of an asset due to a reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation and amortization) had no impairment losses been recognized for that asset in previous years.
The value of Goodwill is not amortized, being tested for impairment purposes on an annual basis. The recoverable amount is determined as being the present value of estimated future cash flows that are expected to be generated by the continuous use of the asset. Impairment losses of Goodwill are recognized in the income statement in the caption "Impairment Losses".
Goodwill impairment losses cannot be reversed.
Loan's related financial costs are recognized as financial expenses in income statement of the period in which they are incurred, in accordance with the accrual principle and the effective interest rate method, except if those costs are directly related to the acquisition, construction or production of fixed assets. In this case, the referred
costs are capitalized, being part of the asset cost. The capitalization of these costs begins after the beginning of the preparation of the construction or asset development activities and it is interrupted when the asset is ready to be used or when the project is suspended. Any financial income generated by loans that are directly related with a specific investment, are deducted to financial expenses elected for capitalization purposes.
Provisions are recognized when and only when the Group has a present obligation (legal or constructive) resulting from a past event, whenever it is probable that, for the resolution of that obligation, there will be an outflow of resources and the amount of the obligation may be reasonably estimated. Provisions are reviewed at the date of each statement of financial position and are adjusted to reflect the best estimate of their fair value at that date (Note 24).
Purchases and sales of investments in financial assets are recorded on the date of the transaction, i.e., the date on which the Group undertakes to buy or sell the asset.
The classification of financial assets depends on the business model followed by the Group to manage its financial assets (receipt of cash flows or appropriation of fair value changes) and the contractual terms of the cash flows receivable (whether only capital plus interest is included or whether it includes other variables).
Changes to the classification of financial assets can only be made when the business model is changed, except in the case of financial assets at fair value through other comprehensive income, which are equity instruments and, therefore, can never be reclassified to another category.
Financial assets may be classified according to the following measurement categories:
(i) Financial assets at amortised cost: includes financial assets that correspond only to the payment of nominal value and interest, and the business model followed by management is the receipt of contractual cash flows;
(ii) Financial assets at fair value through other comprehensive income: this category may include financial assets that qualify as debt instruments (contractual obligation to deliver cash flows) or equity instruments (residual interest in an entity);
a. In the case of debt instruments, this category includes financial assets that correspond only to the payment of nominal value and interest, when the business model followed by management is the receipt of contractual cash flows, either occasionally or a result of their sale;
(Amounts in Euros)
b. In the case of equity instruments, this category includes the percentage of interest held in entities over which the Group does not exercise control, joint control or significant influence, and which the Group irrevocably chose, on the date of initial recognition, to designate at fair value through capital for referring to investments that are not held for trading;
(iii) Financial assets at fair value through profit or loss: includes assets that do not meet the criteria for classification as financial assets at amortised cost or at fair value through other comprehensive income, whether they refer to debt instruments or equity instruments that were not designated at fair value through other comprehensive income.
The classification of the Group's financial assets by category is shown in Note 33.
The Group initially measures financial assets at fair value, plus transaction costs directly attributable to the acquisition of the financial asset, for financial assets that are not measured at fair value through profit or loss. Transaction costs of financial assets at fair value through profit or loss are recorded in the income statement when incurred.
Financial assets at amortised cost are subsequently measured in accordance with the effective interest rate method, less impairment losses. Interest income on these financial assets is included in "Interest earned on assets at amortised cost" in financial gains.
Financial assets at fair value through other comprehensive income, which are debt instruments, are subsequently measured at fair value through fair value changes recognised in other comprehensive income, except for variations related to the recognition of impairment, interest income and gains/(losses) due to foreign exchange differences, which are recognised in the income statement for the year. Financial assets at fair value through other comprehensive income are subject to impairment.
Financial assets at fair value through other comprehensive income which are equity instruments are measured at fair value on the date of initial registration and subsequently, and changes in fair value are recorded directly in other comprehensive income, in equity, and no future reclassifications will occur, even after derecognition of the investment. Dividends obtained from these investments are recognised as gains, in the income statement for the year, on the date they are attributed.
The Group prospectively assesses the expected credit losses associated with the financial assets, which are debt instruments, classified at amortised cost and at fair value through other comprehensive income.
The applied impairment methodology considers the credit risk profile of the debtors, and different approaches are used depending on the nature of the debtors.
(Amounts in Euros)
With respect to the accounts receivable under the "Accounts receivable" and "Other debtors" headings and Assets from contracts with customers, the Group uses the simplified approach allowed by IFRS 9, according to which expected credit losses are recognised since the initial recognition of the accounts receivable and throughout their maturity, considering a matrix of historical default for the maturity of the accounts receivable, adjusted via prospective estimates.
With respect to accounts receivable from related entities, which are not considered part of the financial investment of these entities, credit impairment is assessed according to the following criteria: i) if the account receivable is immediately payable ("on demand"); ii) if the account receivable has an insignificant risk; or (iii) if it has a maturity of less than 12 months.
In cases where the amount receivable is immediately payable and the related entity is able to pay it, the probability of default is close to 0% and, therefore, the impairment is considered equal to zero. In cases where the account receivable is not immediately payable, the related entity's credit risk is assessed and if it is considered "low" or if the maturity is less than 12 months, then the Group only evaluates the probability of a default occurring for the cash flows that will mature in the next 12 months.
To all other situations and types of accounts receivable, the Group uses the general approach of the impairment model, evaluating on each reporting date whether there has been a significant increase in credit risk since the date on which the asset was initially recognised. If there is no increase in credit risk, the Group calculates an impairment corresponding to the amount equivalent to expected losses within a period of 12 months. If there is an increase in credit risk, the Group calculates an impairment corresponding to the amount equivalent to expected losses for all contractual flows until the maturity of the asset.
These are the financial assets that correspond to capital instruments of other entities over which the group does not have control or significant influence, and that the Board of Directors has decided to designate as fair value through capital, as they refer to investments in entities for the future growth of the business.
This category is included in non-current assets, except if the Board of Directors has the intention of alienate the investment within a period inferior to 12 months starting from the statement of financial position date.
At December 31, 2019, Toyota Caetano Group held shares of Cimóvel - Real Estate Investment Fund (Note 9).
(Amounts in Euros)
The Group derecognises financial assets when, and only when, contractual rights to cash flows have expired or have been transferred and the Entity has substantially transferred all the risks and benefits pertaining to the ownership of the asset.
To determine the fair value of a financial asset or liability, if such a market exists, the market price is applied (Level 1). A market is regarded as active if quoted prices are readily and regularly available from an exchange, broker or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm's length basis. Otherwise, which is the case of some financial assets and liabilities, valuation techniques that are generally accepted in the market are used based on market assumptions (e.g.: discounted cash flow models that incorporate interest rate curves and market volatility, which is the case of derivative financial instruments) – Level 2. On the other cases, valuation techniques are used, not based on observable market data – Level 3.
Investments are all initially recognized at fair value, including transaction costs, except for investments recognized at fair value through profit or loss. In this case, investments are initially recognized at fair value, and the respective transaction costs are recognized directly in the income statement.
"Instruments at fair value through capital'" is kept at fair value at the statement of financial position date, without deducting any transaction cost that could occur until the time of disposal.
Gains and losses arising from a change in the fair value of instruments at fair value through capital are recorded under equity caption "Fair value reserves" until the investment is sold or disposed, or until it is determined to be impaired. At that moment, the accumulated gains or losses previously recognized in equity are transferred to income statement for the period.
All purchases and sales of investments are recorded on their trade date, which is on the date the Group assumes all risks and obligations related to the purchase or sale of the asset.
The fair value of the instruments at fair value through capital is based on the current market prices. If the market is not net (non-listed investments), the Group records the acquisition cost, having in consideration the existence or not of impairment losses. The Board of Directors believes that the fair value of these investments is not very different from the acquisition cost. The fair value of the listed investments is calculated based on the stock market closed value at statement of financial position date.
The Group makes evaluations if it considers that at the statement of financial position date exists clear evidence that the financial asset might be in impairment. In case of capital instruments classified as instruments at fair value through capital, have a significant drop or extended of its fair value inferior to its cost, it indicates that an impairment situation is occurring. If there is any evidence of impairment in "Instruments at fair value through capital", the accumulated losses – calculated by the difference between the acquisition cost and the fair value
deducted from any impairment loss previously recognized in the statement of profit and loss – are retrieved from the equity and recognized in the income statement.
The investments are derecognized if the right to receive financial flows has expired or was transferred, and consequently, all associated risks and benefits have been transferred.
The amounts included under "Cash and cash equivalents" correspond to cash values, bank deposits, time deposits and other cash investments, which mature less than three months and can be immediately mobilized with insignificant risk of change in value.
Bank overdrafts are presented in the consolidated statement of financial position, in current liabilities, under the item "Loans", and are considered in the preparation of the cash flows statement, as cash and cash equivalents.
These headings mainly include customer balances resulting from services rendered as part of the Group's activity and other balances related to operating activities. Balances are classified as current assets when they are estimated to be collected within a 12-month period. Balances are classified as non-current when they are estimated to be collected more than 12 months after the reporting date.
The "Accounts receivable" and "Other debtors" are initially recognized at fair value and are subsequently measured at amortized cost, less impairment adjustments. Impairment losses in Accounts receivable and Other debtors are recorded in accordance with the principles described in "Impairment losses". The identified impairment losses are recorded in the income statement in "Impairment losses in accounts receivable" and are subsequently reversed by profit or loss.
Financial liabilities are classified in two categories:
The "Financial liabilities at amortized cost" category includes liabilities recorded under "Loans" (Note 18), "accounts payable" (Note 19) and "Other creditors" (Note 20). These liabilities are initially recognized at fair value, net of transaction costs, and subsequently measured at amortized cost according to the effective interest rate method.
Financial liabilities are derecognized when the underlying obligations are extinguished by payment, cancelled, or expire.
As of December 31, 2019 and 2018, the Group has only recognized liabilities classified as "Financial liabilities at amortized cost."
Financial liabilities are derecognized when the underlying obligations are extinguished by payment, cancelled, or expire.
Loans obtained are initially recognized at fair value, net of any transaction costs incurred. Loans are subsequently measured at amortized cost and the difference between the nominal value and the initial fair value recognized in the income statement and in the income statement throughout the term of the loan using the effective interest rate method.
Loans obtained are classified under current liabilities, unless the Group has an unconditional right to defer the payment of the liability for at least 12 months after the date of the financial report, in which case they are classified as non-current liabilities.
Financial expenses are calculated based on the effective interest rate and are recorded in the income statement on an accrual basis.
These headings usually include balances of goods and services suppliers that the Group acquired in the normal course of its business. The items included in these will be classified as current liabilities if the payment is due within 12 months or less; otherwise, the "Accounts payable" will be classified as non-current liabilities.
These financial liabilities are initially recognized at fair value. After their initial recognition, the liabilities shown under the "Accounts payable" heading are measured at amortized cost, using the effective interest rate method.
Accounts payable and Other creditors not bearing interests are measured at cost, less impairment losses so that they reflect the respective net realizable value. These amounts are not discounted because its effect in the financial actualization is not considered relevant.
In order to estimate its liabilities for the payment of the mentioned responsibilities, the Group obtains annually an actuarial calculation of the liabilities for past services in accordance with the "Current Unit Credit Method".
Recorded liabilities as of the statement of financial position date represent the present value of future benefits net of the fair value of net assets within the pension fund (Note 23).
The Group recognized remeasurement in "Other reserves", not being recycled for results.
Contributions to the Defined Contribution Plan are recorded as an expense for the year.
Contingent liabilities are defined by the Group as (i) possible obligations from past events and which existence will only be confirmed by the occurrence or not of one or more uncertain future events not totally under Group's control or (ii) present obligations from past events not recognized because it is not expected that an output of resources that incorporate economic benefits will be necessary to settle the obligation or its amount cannot be reliably measured.
Contingent liabilities are not recorded in the consolidated financial statements, being disclosed in the respective Notes, unless the probability of a cash outflow is remote. In these situations, no disclosure is made.
Contingent assets are possible assets that arise from past events and whose existence will only be confirmed by the occurrence or not of one or more uncertain future events not totally under the Group's control.
Contingent assets are not recorded in the consolidated financial statements but only disclosed when it is likely the existence of future economic benefits.
Taxes on income for the year are calculated based on the Special Taxation of Groups of Companies ("RETGS"), which includes companies of Toyota Caetano Group based in Portugal: Toyota Caetano Portugal, Caetano Renting and Caetano Auto.
The only subsidiary with headquarters in a foreign country (Caetano Auto Cabo Verde) is taxed on an individual basis and in accordance with the applicable legislation.
Deferred taxes are calculated using the statement of financial position liability method, reflecting the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are not recognized when temporary differences arise from Goodwill or from initial recognition of assets and liabilities other than in a business combination. Deferred tax assets and liabilities are calculated and annually reviewed using the tax rates in place or announced and thereby expected to apply at the time the temporary differences are expected to reverse.
Deferred tax assets are recognized only when it is probable that sufficient taxable profits will be available against which the deferred tax assets can be used, or when taxable temporary differences are recognized and expected
to reverse in the same period. At each balance sheet date, a review is made of the deferred tax assets recognized, which are reduced whenever their future use is no longer likely.
Deferred tax assets and liabilities are recorded in the income statement, except if they relate to items directly recorded in equity, situations in which the corresponding deferred tax is also recorded in equity captions.
Income and expenses are recorded according to the accrual basis, by which they are recognized in the period to which they relate independently of when the amounts are received or paid. Differences between the amounts received and paid and corresponding income and expenses are recorded in the captions accruals and deferrals included in "Other current assets" and "Other current liabilities".
Income and expenses for which the actual amount is yet unknown are recorded based on the best estimate of the Board of Directors of the Group companies.
Revenue corresponds to the fair value of the amount received or receivable from transactions with customers in the normal course of business. Revenue is recorded net of any taxes, trade discounts, and financial rebates.
In determining the value of revenue, the Group evaluates the performance obligations undertaken towards customers in each transaction, the price of the transaction to be affected by each performance obligation that is identified, and the existence of variable price conditions that may lead to future adjustments to the value of the recorded revenue, for which the Group makes its best estimate.
Revenue is recorded in the income statement when the control over the product or service is transferred to the customer, i.e., at the moment when the customer becomes able to manage the use of the product or service and to obtain all the remaining economic benefits associated with it.
The Group considers that, given the nature of the product or service that is associated with the performance obligations undertaken, the transfer of control occurs mostly on a specific date, but there may be transactions in which the transfer of control occurs continuously over the contractual period that has been previously established.
Revenue of the Toyota Caetano Portugal Group is comprised of the revenue arising from the activities mentioned in Note 1.
The amounts recorded in the item "Other current assets" with the amount of 620.339 euros constitute contracts assets within the scope of IFRS 15 (note 13). The amounts recorded under the captions "Other creditors" and "Other current liabilities" in the amount of 1.063.582 euros and 18.749 euros, respectively, constitute contracts liabilities under IFRS 15 (notes 20 and 22).
(Amounts in Euros)
All assets and liabilities, including assed and liabilities deferred tax, accomplishable or receivable in more than one year after the statement of financial position date are classified as "Non-current assets or liabilities".
Assets and liabilities stated in foreign currency were translated into Euros using applicable exchange rates as of statement of financial position date. Exchange differences, favorable and unfavorable, resulting from differences between applicable exchange rates as of the date of the transactions and those applicable as of the date of cash collection, payments or as of statement of financial position date, were recorded as gains and losses in the consolidated income statement.
Basic:
The basic earnings per share is calculated by dividing the taxable income of the shareholders by the weighted average number of common shares issued during the period, excluding the common shares acquired by the company and held as treasury shares.
Diluted earnings per share are calculated by dividing the profit attributable to shareholders, adjusted for the dividends of convertible preferred shares, convertible debt interest and gains and expenses resulting from the conversion, by the weighted average number of common shares issued during the period plus the average number of shares common shares issued in converting potential dilutive common shares.
In each year the Group identifies the most adequate business segments. They are defined according to the functional organization chart of the group, and according with the management information organization.
In accordance with IFRS 8, an operating segment is a Group component:
Information related to the identified operating segments (vehicles and industrial equipment) is included in Note 27. In that note, information is also given by geography and subsegments. For the segment of motor vehicles were added the subsegments, industry, trade, services and rental. For the industrial equipment segment, the machinery, services and rental sub-segment was added
(Amounts in Euros)
Events after the balance sheet date that provide additional information about conditions that existed at the balance sheet date (adjusting events), are reflected in the financial statements. Events after the balance sheet date that are non-adjusting events, are disclosed in the notes when material.
During the preparation of the consolidated financial statements, the Board of Directors of the Group based itself in the best knowledge and in the experience of past and/or present events considering some assumptions relating to future events.
Most significant accounting estimates included in attached financial statements as of December 31, 2019 and 2018 include:
The underlying estimations and assumptions were determined based in the best knowledge existing at the date of approval of the financial statements of the events and transactions being carry out as well as in the experience of past and/or present events. Nevertheless, some situations may occur in subsequent periods which, not being predicted at the date of approval of the financial statements, were not consider in these estimations. The changes in the estimations that occur after the date of the financial statements shall be corrected in a foresight way. Due to this fact and to the uncertainty degree associated, the real results of the transactions may differ from the corresponding estimations. Changes to these estimates, which occur after publication of these consolidated financial statements, will be corrected in a prospective way, in accordance with IAS 8.
The assumptions with the greatest impact on the estimates referred to above are those of the discount rate, for the purposes of calculating the liability for pension fund and goodwill impairment and mortality tables for the purposes of calculating pension liability.
The main significant judgments and estimates relating to future events included in the preparation of the financial statements are described in the related notes to the financial statements.
Considering the exemption provided for in IAS 12 in a) of paragraph 15 due to the lack of certainty about the tax and accounting treatment to be given to the subject in question. It is taken into account that when the position of the Tax Administration becomes public and / or the IASB publishes the amendment to IAS 12, there may be changes to the accounting treatment adopted in the first application of IFRS 16.
(Amounts in Euros)
In addition, relevant judgments are also made in determining the incremental interest rate as well as in the period to be considered for determining the lease liability and right to use.
The Group carries out sensitivity tests in order to assess the risk inherent in these judgments and estimates.
The Group's activity is exposed to a variety of financial risks, such as market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. These risks arise from the unpredictability of financial markets that affect the capacity of projected cash flows and profits subject to a perspective of long term ongoing. Management seeks to minimize potential adverse effects that derive from that uncertainty in its financial performance.
The financial risks management is controlled by Toyota Caetano financial department, according to the policies established by the Group Board of Directors. The Board of Directors has established the main principles of global risk management as well as specific policies for some areas, as interest rate risk and credit risk.
The Group operates internationally and has a subsidiary operating in Cape Verde. The group selects a functional currency for each subsidiary (Cape Verde Escudo, for the subsidiary Caetano Auto Cabo Verde, S.A.), corresponding to the currency of the economic environment and the ones that better represents its cash flows composition. Foreign currency risk arises mainly from future commercial transactions, as a result of purchases and sales of products and services in a different currency than the functional currency used by each Company.
The Group foreign currency risk management hedge policies are decided casuistically, considering the foreign currency and country specific circumstances (as of December 31 ,2019 and 2018, this situation is not applicable to any of the Group Subsidiaries).
Foreign currency risk related to the foreign subsidiaries financial statements translation, also named translation risk, presents the impact on net equity of the Holding Company, due to the translation of foreign subsidiaries financial statements.
As mentioned in Note 2.2 b), assets and liabilities of foreign subsidiaries are translated into Euros using the exchange rates at statement of financial position date, and gains and losses of these entities are translated into Euros using the average exchange rate of the year. Resulting exchange differences are recorded in equity caption "Translation reserves".
The Group's assets and liabilities amounts (expressed in Euros) recorded in a different currency from Euro can be summarized as follows:
| Assets | Liabilities | |||
|---|---|---|---|---|
| Dec-19 | Dec-18 | Dec-19 | Dec-18 | |
| Cape Verde Escudo (CVE) Great Britain Pounds (GBP) Japanese Yen (JPY) |
6.183.612 - - |
6.950.754 - - |
1.528.665 31 399.992 |
2.421.144 38.096 666.606 |
The sensitivity of the Group to foreign exchange rate changes can be summarized as follows:
| Dec-19 | Dec-18 | ||||
|---|---|---|---|---|---|
| Net | |||||
| Variation | Net Income | Equity | Income | Equity | |
| Great Britain Pounds (GBP) | 5% | (2) | - | (1.906) | - |
| Japanese yen (JPY) | 5% | (20.000) | - | (33.330) | - |
The group is exposed to the changing in raw material's prices used on production processes, namely auto parts. However, considering that the acquisition of those raw materials is not in accordance with a price quoted on an exchange market or formed on a volatile market, the price risk is not considered as being significant.
During 2019 and 2018, the Group has been exposed to the risk of variation of instruments at fair value through capital prices. At December 31, 2019 and 2018, the referred caption is composed only by shares of the closed property investment fund Cimóvel – Fundo de Investimento Imobiliário Fechado (Real Estate Investment Fund). Due to the fact that the referred asset is classified as an instrument at fair value through capital, the effect of change in its fair value is recognized in accordance with the principles described on the note 2.3. j).
The Group's sensitivity to price variations in instruments at fair value through capital can be summarized as follows (increases/(decreases)):
| Dec-19 | Dec-18 | ||||
|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | |
| CIMOVEL FUND | 10% | - | 389.714 | - | 356.668 |
| CIMOVEL FUND | -10% | - | (389.714) | - | (356.668) |
(Amounts in Euros)
Toyota Caetano debt is indexed to variable interest rates, exposing the total cost of debt to a high risk of volatility. The impact of this volatility on the Group's results and shareholders´ equity mitigated due to the effect of the following factors: (i) possible correlation between the market interest rate levels and economic growth, having a positive effect on the other lines of the Group's consolidated results (particularly operational), thus partially offsetting the increased financial costs ("natural hedge") and (ii) the availability of consolidated liquidity or cash, also remunerated at variable rates.
Toyota Caetano Board of Directors approves the terms and conditions of the funding, analyzing the debt structure, the inherent risks and the different options available in the market, particularly considering the type of interest rates (fixed / variable) and, permanently monitoring conditions and alternatives existing in the market, and decides upon the contracting of occasional interest rate hedging derivative financial instruments.
The sensitivity analyses presented below was based on exposure to changes in interest rates for financial instruments at the statement of financial position date. For floating rate liabilities, the analysis is prepared assuming the following:
The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some assumptions may be correlated.
Group's sensitivity to changes in interest rates is summarized as follows (increases/(decreases)):
| Dec-19 | Dec-18 | |||||
|---|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | ||
| Guaranteed account | 0,25 p.p. | - | - | 25.000 | - | |
| Bank overdrafts | 0,25 p.p. | 407 | - | 2.309 | - | |
| Commercial Paper | 0,25 p.p. | - | - | 48.500 | - | |
| Long-term Bank Loan | 0,25 p.p. | 25.000 | - | 25.000 | - | |
| Bond Loan | 0,25 p.p. | 31.250 | - | 31.250 | - | |
| Total | 56.657 | - | 132.059 | - | ||
| Guaranteed account | (0,25 p.p.) | - | - | (25.000) | - | |
| Bank overdrafts | (0,25 p.p.) | (407) | - | (2.309) | - | |
| Commercial Paper | (0,25 p.p.) | - | - | (48.500) | - | |
| Long-term Bank Loan | (0,25 p.p.) | (25.000) | - | (25.000) | - | |
| Bond Loan | (0,25 p.p.) | (31.250) | - | (31.250) | ||
| Total | (56.657) | - | (132.059) | - | ||
(Amounts in Euros)
Liquidity risk is defined as the risk that the Group could not be able to settle or meet its obligations on time or at a reasonable price.
The existence of liquidity in the Group requires the definition of some parameters for the efficient and secure management of liquidity, enabling maximization of the return obtained and minimization of the opportunity costs relating to the liquidity.
Toyota Caetano Group liquidity risk management has a threefold objective:
(i) Liquidity, which is to ensure permanent access in the most efficient way to sufficient funds to cover current payments on the respective maturity dates, as well as any unexpected requests for funds;
(ii) Safety, which is the minimization of the probability of default in the repayment of any application in funds; and
(iii) Financial Efficiency, which is ensuring that the Companies maximize the value / minimize the opportunity cost of holding excess liquidity in the short-term.
All excess liquidity is applied in short-term debt amortization, according to economic and financial reasonableness criteria.
In the following table, it is presented the maturity of each financial liability, with non-discounted values, taking into consideration the most pessimistic scenario (the shortest period on which the liability falls due):
| Dec-19 | Less than 1 year |
Between 1 and 2 years |
Between 2 and 4 years |
More than 4 years |
Total |
|---|---|---|---|---|---|
| Loans | 7.353.166 | 15.311.768 | 6.553.059 | 15.015.398 | 44.233.391 |
| Accounts Payable | 38.236.935 | - | - | - | 38.236.935 |
| Other Creditors | 51.854.470 | - | - | - | 51.854.470 |
| 97.444.571 | 15.311.768 | 6.553.059 | 15.015.398 | 134.324.796 |
| Dec-18 | Less than 1 year |
Between 1 and 2 years |
Between 2 and 4 years |
More than 4 years |
Total |
|---|---|---|---|---|---|
| Loans | 52.538.913 | 6.028.237 | 17.553.607 | 14.883.298 | 91.004.055 |
| Accounts Payable | 39.907.558 | - | - | - | 39.907.558 |
| Other Creditors | 14.783.849 | - | - | - | 14.783.849 |
| 107.230.320 | 6.028.237 | 17.553.607 | 14.883.298 | 145.695.462 |
As of December 31, 2019 and 2018, the Group presents a net debt of 31.539.747 Euros and 73.928.900 Euros, respectively, divided between current and non-current loans (Note 18) and cash and cash equivalents (Note 15), agreed with the different financial institutions.
(Amounts in Euros)
The main objective of the Board of Directors is to assure the continuity of the operations, providing an adequate remuneration to shareholders and the correspondent benefits to the rest of the stakeholders of the Group. For the prosecution of this objective it is fundamental that a careful management of funds invested in the business is assured, trying to keep an optimal capital structure, in order to achieve the desired reduction of the cost of capital. With the purpose of maintaining or adjusting an adequate capital structure, the Board can propose to the shareholders the measures considered necessary.
The Group tries to maintain a level of equity considered adequate to the business characteristics, in order to assure continuity and expansion of the business. The capital structure balance is monitored through the financial leverage ratio (defined as net debt/ (net debt + equity)).
| Dec-19 | Dec-18 | |
|---|---|---|
| Debt | 44.233.391 | 91.004.055 |
| Cash and cash equivalents | (12.693.644) | (17.075.155) |
| Net Debt | 31.539.747 | 73.928.900 |
| Equity | 142.838.583 | 137.873.129 |
| Leverage ratio | 18,09% | 34,90% |
The gearing remains between acceptable levels, as established by management.
i) the risk of recovery of monetary assets entrusted to third parties, and ii) the risk of recovery of loans granted to entities outside the group. Credit risk is assessed at the initial moment and over time in order to monitor its evolution.
A significant portion of the amounts receivable from customers is dispersed among a large number of entities, a factor that contributes toward reducing the credit concentration risk. As a general rule, the Group customers are not assigned a credit rating.
Credit risk is monitored by the Group financial department, under the supervision of the Board of Directors, based on: i) the rating assigned by the credit insurance company, with which the Group has negotiated a credit insurance agreement; (ii) the debtors' corporate nature; iii) the type of transactions originating the accounts receivable; iv) the experience of past transactions; and (v) the credit limits established for each customer.
The Group considers the probability of default upon the initial recognition of the asset and, according to the occurrence of significant increases in credit risk continuously in each reporting period. In order to assess whether there has been a significant increase in credit risk, the Group compares the risk of default occurring by
reference to the reporting date, with the risk of default assessed by reference to the date of initial recognition. Adequate and duly supported prospective information is considered. The following indicators are considered:
Macroeconomic information (such as market interest rates or growth rates) is incorporated into the domestic credit model.
Irrespective of the above analysis, a significant increase in credit risk is presumed to exist if a debtor is in default by more than 30 days from the contractual payment date.
Default is deemed to exist when the counterparty fails to make contractual payments within 90 days of the invoice due date. When financial assets are derecognized, the Group continues to take the necessary measures to recover the amounts owed. In cases of successful recovery, the recovered amounts are recognized in the income statement for the year.
Financial assets are derecognized when there is no real expectation of recovery. The Group classifies a loan or account receivable to be derecognized when the debtor fails to make contractual payments within 30 days.
The Group uses the simplified approach to calculate and record the expected credit losses required by IFRS 9, which allows using estimated impairment losses for all "Accounts receivable" and "Other debtors". In order to measure expected credit losses, "Accounts receivable" and "Other debtors" were aggregated based on the shared credit risk characteristics, as well as on the days of delay. Impairment losses on December 31, 2019 are determined as follows; the expected credit losses include information from prospective estimates. Accounts receivable ageing balances in Note 11.
(Amounts in Euros)
b) Loans granted to related entities
The balances in "Loans granted to related parties" are considered to have a low credit risk and, therefore, impairment in credit losses recognized during the period are limited to expected credit losses estimated for 12 months. These financial assets are considered to have a "low credit risk" when they have a low irrecoverable risk and the debtor has a high capacity to meet its contractual cash flow liabilities in the short term.
Regarding independent dealership customers, the Group requires guarantees "on first demand", whose amounts, as of December 31, 2019 and 2018 were of, approximately, 9.114.110 Euros, and whenever these amounts are exceeded, these supplies are suspended.
The impairments for accounts receivable are calculated considering (a) the client risk profile, (b) the average receipt time and (c) the client financial situation. The movements of these adjustments for the years ending at December 31, 2019 and 2018 are stated in Note 24.
As of December 31, 2019 and 2018, the Group considers that there is no need for additional impairment losses, besides the amounts registered on those dates and stated, briefly, in Note 24.The amount related to the accounts receivable and other debtors in financial statements, which is net of impairment losses, represents the maximum exposure of the Group to credit risk.
The following table presents, as of December 31, 2019 and 2018, the credit quality of bank deposits:
| Dec-19 | ||
|---|---|---|
| Deposits Long Term Rating | Rating Agency | Value |
| A2 | Moody's | 59.201 |
| A3 | Moody's | 181.963 |
| Aa3 | Moody's | 10.868 |
| B1 | Moody's | 485.101 |
| B2 | Moody's | 181.648 |
| B3 | Moody's | 517.954 |
| Baa1 | Moody's | 3.008.670 |
| Baa2 | Moody's | 68.385 |
| Baa3 | Moody's | 6.520.472 |
| Others without rating assigned | 1.536.614 | |
| Total | 12.570.877 |
| Dec-18 | |
|---|---|
| Rating Agency | Value |
| Moody's | 10.320 |
| Moody's | 50.302 |
| Moody's | 600.772 |
| Moody's | 8.684 |
| Moody's | 406.506 |
| Moody's | 1.976.845 |
| Moody's | 6.856.596 |
| Moody's | 632.651 |
| Moody's | 4.324.673 |
| Moody's | 846.168 |
| Others without rating assigned | 1.233.879 |
| 16.947.398 | |
(Amounts in Euros)
The ratings presented correspond to ratings assigned by the Rating Agency Moody's.
In addition to the adoption of IFRS 16, as mentioned in note 2.1.3., there were no changes in accounting policies and no material mistakes related with previous periods were identified.
The affiliated companies included in consolidation by the full consolidation method and share of capital held as of December 31, 2019 and 2018, are as follows:
| Companies | Effective Percentage Held |
|
|---|---|---|
| Dec-19 | Dec-18 | |
| Toyota Caetano Portugal, S.A. | Parent Company | |
| Saltano - Investimentos e Gestão (S.G.P.S.), S.A. | - | 99,98% |
| Caetano Auto CV, S.A. | 81,24% | 81,24% |
| Caetano Renting, S.A. | 100,00% | 99,98% |
| Caetano - Auto, S.A. | 98,43% | 98,40% |
These subsidiaries were included in the consolidated financial statements using the full consolidation method, as established in IFRS 10 – "Consolidated Financial Statements" (subsidiary control through the major voting rights and exposure to variable returns in relevant activities).
(Amounts in Euros)
During the year ended December 31, 2019, there was a change in the composition of the consolidation perimeter with the liquidation of Saltano in May, 2019.During the previous year there was any change in the composition of the consolidation perimeter.
During the year ended as December 31, 2019 and 2018, the movement in intangible assets, as well as in the respective accumulated amortization and accumulated impairment losses, was as follows:
| Dec-19 | ||||||
|---|---|---|---|---|---|---|
| Research and Development Expenses |
Industrial Property |
Goodwill | Computer Programs |
Intangible Assets in progress |
Total | |
| Gross Assets: | ||||||
| Opening Balances | 1.477.217 | 551.031 | 81.485 | 2.150.170 | - | 4.259.903 |
| Additions | - | 64.965 | - | 5.200 | 202.804 | 272.969 |
| Changes in Perimeter | - | - | - | (500) | - | (500) |
| Ending Balances | 1.477.217 | 615.996 | 81.485 | 2.154.870 | 202.804 | 4.532.372 |
| Accumulated Amortization and Impairment losses: |
||||||
| Opening Balances | 1.477.217 | 198.131 | 81.485 | 2.142.706 | - | 3.899.539 |
| Amortizations | - | 159.907 | - | 8.041 | - | 167.948 |
| Changes in Perimeter | - | - | - | (500) | - | (500) |
| Ending Balances | 1.477.217 | 358.038 | 81.485 | 2.150.247 | - | 4.066.987 |
| Net Intangible Assets | - | 257.958 | - | 4.623 | 202.804 | 465.385 |
| Dec-18 | ||||||
|---|---|---|---|---|---|---|
| Research and Development Expenses |
Industrial Property |
Goodwill | Computer Programs |
Intangible Assets in progress |
Total | |
| Gross Assets: | ||||||
| Opening Balances | 1.477.217 | 399.378 | 81.485 | 2.150.170 | - | 4.108.250 |
| Additions | - | 153.701 | - | - | - | 153.701 |
| Disposals and Write-offs | - | (2.048) | - | - | - | (2.048) |
| Ending Balances | 1.477.217 | 551.031 | 81.485 | 2.150.170 | - | 4.259.903 |
| Accumulated Amortization and Impairment losses: |
||||||
| Opening Balances | 1.449.781 | 76.558 | 81.485 | 2.087.579 | - | 3.695.403 |
| Amortizations | 27.436 | 122.491 | - | 55.127 | - | 205.054 |
| Disposals and Write-offs | - | (918) | - | - | - | (918) |
| Ending Balances | 1.477.217 | 198.131 | 81.485 | 2.142.706 | - | 3.899.539 |
| Net Intangible Assets | - | 352.900 | - | 7.464 | - | 360.364 |
(Amounts in Euros)
During the years ended as of December 31, 2019 and 2018, the movement in tangible fixed assets, as well as in the respective accumulated depreciation and accumulated impairment losses, was as follows:
| Dec-19 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Land | Buildings and Other Constructions |
Machinery and Equipment |
Transport Equipment |
Administrative Equipment |
Other Fixed Assets |
Tangible assets in Progress |
Right-of use Assets |
Total | |
| Gross Assets: | |||||||||
| Opening Balances | 18.920.052 | 90.552.569 | 61.802.798 | 99.627.898 | 8.421.472 | 4.506.599 | 1.132.876 | - | 284.964.264 |
| Accounting policies changes | (1.805.867) | (5.406.201) | (103.432) | (57.225.580) | - | - | - | 66.626.071 | 2.084.991 |
| Additions | 81.621 | 1.441.169 | 857.538 | 44.416.374 | 537.451 | 290.829 | 1.034.796 | 5.628.537 | 54.288.315 |
| Disposals and Write-offs | - | - | (96.521) | (6.246.037) | (8.398) | (312) | - | (1.063.388) | (7.414.656) |
| Inventories transfer | - | - | - | (42.118.294) | - | - | - | - | (42.118.294) |
| Transfer and reclassifications | - | 1.025.082 | - | - | - | - | (1.025.417) | - | (335) |
| Ending Balances | 17.195.806 | 87.612.619 | 62.460.383 | 38.454.361 | 8.950.525 | 4.797.116 | 1.142.255 | 71.191.220 | 291.804.285 |
| Accumulated Depreciation and Impairment losses: |
|||||||||
| Opening Balances | - | 62.859.307 | 57.207.267 | 40.521.279 | 7.338.174 | 4.245.545 | - | - | 172.171.572 |
| Accounting policies changes | - | (914.486) | (2.694) | (20.228.768) | - | - | - | 21.145.948 | - |
| Depreciations | - | 2.121.987 | 1.030.943 | 10.010.948 | 198.940 | 80.235 | - | 11.119.904 | 24.562.957 |
| Disposals and Write-offs | - | - | (96.522) | (2.493.765) | (8.398) | (253) | - | (985.049) | (3.583.987) |
| Inventories transfer | - | - | - | (11.365.862) | - | - | - | - | (11.365.862) |
| Ending Balances | - | 64.066.808 | 58.138.994 | 16.443.832 | 7.528.716 | 4.325.527 | - | 31.280.803 | 181.784.680 |
| Net Tangible Fixed Assets | 17.195.806 | 23.545.811 | 4.321.389 | 22.010.529 | 1.421.809 | 471.589 | 1.142.255 | 39.910.417 | 110.019.605 |
| Land | Buildings and Other Constructions |
Machinery and Equipment |
Transport Equipment |
Administrative Equipment |
Other Fixed Assets |
Tangible assets in Progress |
Total |
|---|---|---|---|---|---|---|---|
| 16.443.805 | 89.685.756 | 61.157.213 | 80.675.537 | 8.409.708 | 4.451.433 | 291.742 | 261.115.014 |
| 2.549.082 | 1.508.970 | 1.270.847 | 62.788.359 | 254.092 | 60.398 | 1.028.377 | 69.460.125 |
| (72.835) | (823.060) | (625.262) | (5.905.222) | (242.328) | (5.232) | (6.340) | (7.680.279) |
| - | 180.903 | - | (37.930.596) | - | - | (180.903) | (37.930.596) |
| 18.920.052 | 90.552.569 | 61.802.798 | 99.627.898 | 8.421.472 | 4.506.599 | 1.132.876 | 284.964.264 |
| - | 61.197.250 | 56.632.165 | 33.601.857 | 7.678.403 | 4.183.729 | - | 163.293.404 |
| - | 2.170.390 | 1.011.765 | 19.607.743 | (111.369) | 66.036 | - | 22.744.565 |
| - | (508.333) | (436.663) | (3.521.393) | (228.860) | (4.220) | - | (4.699.469) |
| - | - | - | (9.166.928) | - | - | - | (9.166.928) |
| - | 62.859.307 | 57.207.267 | 40.521.279 | 7.338.174 | 4.245.545 | - | 172.171.572 |
| 18.920.052 | 27.693.262 | 4.595.531 | 59.106.619 | 1.083.298 | 261.054 | 1.132.876 | 112.792.692 |
| Dec-18 |
(Amounts in Euros)
The additions registered in 2018 in "Land" and "Buildings and Other Constructions" are mainly due related to the acquisition of lands in Vila Nova de Gaia and Gondomar and facilities in Maia. The disposals and write-offs refers to the sale of buildings in Loures and Leiria.
The movements registered in item "Transport Equipment" mainly refer to vehicles and forklifts that are being used by the Group as well as being rented, under operating lease, to clients.
As of December 31, 2019, and 2018, the assets acquired through leases are presented as follows:
| Fixed Tangible assets acquired | Dec-19 | Dec-18 | |||||
|---|---|---|---|---|---|---|---|
| through financial leases | Gross Assets | Accumulated Depreciation |
Net Tangible Assets |
Gross Assets | Accumulated Depreciation |
Net Tangible Assets |
|
| Santarém Stand | 1.400.000 | 320.250 | 1.079.750 | 1.400.000 | 294.000 | 1.106.000 | |
| Santarém Colisão | 235.000 | 14.688 | 220.312 | 235.000 | 11.163 | 223.837 | |
| Carnaxide | 3.246.231 | 628.957 | 2.617.274 | 3.246.231 | 568.090 | 2.678.141 | |
| Santa Maria da Feira | 670.950 | 27.258 | 643.692 | 670.950 | 14.677 | 656.273 | |
| Caldas da Rainha | 936.837 | 35.131 | 901.706 | 936.837 | 17.566 | 919.271 | |
| Maia Colisão | 723.050 | 30.568 | 692.482 | 723.050 | 8.991 | 714.059 | |
| Equipamento Oficinal | 103.432 | 9.158 | 94.274 | 103.433 | 2.694 | 100.739 | |
| Industrial Equipment | 41.146.951 | 25.587.331 | 15.559.619 | 36.581.801 | 20.107.820 | 16.473.981 | |
| Transport Equipment | 20.643.779 | 3.330.040 | 17.313.740 | 15.086.222 | 1.978.655 | 13.107.567 | |
| TOTAL | 69.106.230 | 29.983.381 | 39.122.849 | 58.983.524 | 23.003.656 | 35.979.868 |
As of December 31, 2019 and 2018, the caption "Investment properties" refers to real estate's assets held to obtain gains through its rental or for capital gain purposes. These real estate assets are recorded at acquisition cost.
Rentals related to "Investment properties" amounted to 2.988.558 Euros in the year ended as of December 31, 2019 (2.820.267 Euros as of 31, December 2018).
Additionally, in accordance with appraisals with reference to 2019, the fair value of those investment properties amounts to, approximately, 54 million Euros.
Management believes that a possible change (within a scenario of normal) in the main assumptions used in calculating the fair value will not result in impairment losses, beyond from losses recognized in previous years.
The real estate assets recorded in the caption "Investment properties" as of December 31, 2019 and 2018 are made up as follows:
| Dec-19 | Dec-18 | |||||
|---|---|---|---|---|---|---|
| Net accounting |
Fair Value | Appraisal | Net accounting |
Fair Value | Appraisal | |
| Location | value | value | ||||
| Vila Nova de Gaia - Av. da República | 121.972 | 1.192.400 | Internal | 84.202 | 1.192.400 | Internal |
| Braga - Av. da Liberdade | - | 2.330.000 | External | - | 1.355.000 | Internal |
| Porto - Rua do Campo Alegre | 757.734 | 3.315.000 | Internal | 795.350 | 3.315.000 | External |
| Viseu - Teivas | 711.644 | 1.841.000 | External | 762.388 | 896.000 | Internal |
| Caldas da Rainha - Rua Dr. Miguel Bombarda | 17.531 | 85.000 | Internal | 17.531 | 85.000 | Internal |
| Viseu - Quinta do Cano | 1.704.237 | 1.625.750 | Internal | 1.713.586 | 1.625.750 | Internal |
| Amadora - Rua Elias Garcia | 174.100 | 149.000 | Internal | 177.559 | 149.000 | Internal |
| Portalegre - Zona Industrial | 173.533 | 173.000 | Internal | 178.674 | 173.000 | Internal |
| Portimão - Cabeço do Mocho | 524.781 | 550.000 | Internal | 424.782 | 550.000 | Internal |
| Vila Real de Santo António - Rua de Angola | - | - | - | 23.911 | 83.000 | Internal |
| Rio Maior | 107.000 | 107.000 | Internal | 107.000 | 107.000 | Internal |
| S João de Lourosa - Viseu | - | - | - | 452.472 | 487.030 | Internal |
| Castelo Branco - Oficinas | 719.734 | 1.100.000 | Internal | 759.135 | 1.100.000 | External |
| Teivas | 118.344 | 72.800 | External | - | - | - |
| Vila Nova de Gaia - Av. Vasco da Gama (A and B Buildings) | 2.584.894 | 8.692.000 | Internal | 2.802.242 | 8.692.000 | Internal |
| Vila Nova de Gaia - Av. Vasco da Gama (G Building) | 784.140 | 9.165.200 | External | 804.483 | 6.077.000 | Internal |
| Carregado - Quinta da Boa Água / Quinta do Peixoto | 4.951.364 | 23.120.000 | Internal | 4.989.846 | 19.218.000 | Internal |
| Vila Nova de Gaia - Rua das Pereiras | 225.721 | 788.000 | Internal | 237.553 | 788.000 | Internal |
| 13.676.728 | 54.306.150 | 14.330.714 | 45.893.180 | |||
The investment properties fair value disclosed in December 31, 2019 and December 31, 2018 was determined on an annual basis by an independent appraiser (the fair value was determined by the average of the evaluations by Market Method, Cost Method and Return Method).
In accordance to the classification of the evaluation methods mentioned above, and related with the fair value hierarchy (IFRS 13), they are classified as follows:
Additionally, as a result of all internal assessments prepared by the Group for the remaining properties and given the nonexistence of major works in 2019, the absence of relevant claims in 2018 and the lack of properties in areas of accelerated degradation, is convinced the administration of that there has been no significant change to the fair value of these properties in 2019, believing they are still valid and current values of the last external evaluation carried out in late 2012, 2013, 2014, 2016, 2017 and 2018.
The movement in the caption "Investment properties" as of December 31, 2019 and 2018 was as follows:
| Dec-19 | |||
|---|---|---|---|
| Gross Assets: | Land | Buildings | Total |
| Opening Balances | 9.305.659 | 35.408.776 | 44.714.435 |
| Additions | - | 40.294 | 40.294 |
| Disposals and Write-offs | (210.443) | (197.187) | (407.630) |
| Transfer | (100.000) | 335 | (99.665) |
| Ending Balances | 8.995.216 | 35.252.218 | 44.247.434 |
| Accumulated Depreciation and Impairment Losses: Opening Balances Depreciations Disposals and Write-offs Transfer Ending Balances |
- - - - - |
30.383.721 437.677 (150.692) (100.000) 30.570.706 |
30.383.721 437.677 (150.692) (100.000) 30.570.706 |
| Net value | 8.995.216 | 4.681.512 | 13.676.728 |
Dec-18
| Gross Assets: | Land | Buildings | Total |
|---|---|---|---|
| Opening Balances | 10.135.964 | 36.926.442 | 47.062.406 |
| Additions | - | 20.775 | 20.775 |
| Disposals and Write-offs | (830.305) | (1.538.441) | (2.368.746) |
| Ending Balances | 9.305.659 | 35.408.776 | 44.714.435 |
| Accumulated Depreciation and Impairment Losses: | |||
| Opening Balances | - | 30.699.208 | 30.699.208 |
| Depreciations | - | 473.690 | 473.690 |
| Disposals and Write-offs | - | (789.177) | (789.177) |
| Ending Balances | - | 30.383.721 | 30.383.721 |
| Net value | 9.305.659 | 5.025.055 | 14.330.714 |
As of 2018, the disposals and write-offs mainly refer to Land of Buildings in Azóia, Infante Santo, Óbidos and Castro Daire.
The accumulated impairment losses recorded in 2019 and 2018 amounts to 2.680.809 and 2.780.809 Euros, respectively.
(Amounts in Euros)
As of December 31, 2019 and 2018 there were not any movements in item "Goodwill".
The item "Goodwill" is totally related to the amount calculated in the acquisition of the affiliate Movicargo whose business was transferred to the parent Toyota Caetano Portugal, S.A.
The Goodwill is not amortized. Impairment tests are made annually to the Goodwill.
For impairment analysis, the recoverable amount was determined based on the value in use, according to the discounted cash flows model, based on business plans developed by the people in charge and approved by the Board of Directors and using discount rates that reflect the risks inherent of the business.
As of December 31, 2019, the method and main assumptions used were as follows:
| BT Industrial Equipment Division - South |
|
|---|---|
| Goodwill | 611.997 |
| Period | Projected cash flows for 5 years |
| Growth rate (g) (1) | 2,0% |
| Discount rate (2) | 6,25% |
1 Growth rate used to extrapolate cash flows beyond the period considered in the business plan 2 Discount rates applied to projected cash flows
The Management, supported by the estimated discounted cash flows discounted, concluded that on December 31, 2019, the net book value of assets, including goodwill (0,6 millions Euros), does not exceed its recoverable amount (38 millions Euros).
The projections of cash flows were based on historical performance and on expectations of improved efficiency. The management believe that a possible change (within a normal scenario) in key assumptions used in calculating the recoverable amount will not result in impairment losses.
(Amounts in Euros)
As of December 31, 2019, and 2018 the movements in item "instruments at fair value through capital' were as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Instruments at fair value through capital | ||
| Fair value at January 1 | 3.633.413 | 3.732.500 |
| Disposals during the year | (39.904) | - |
| Increase/(decrease) in fair value | 330.465 | (99.087) |
| Fair value at December 31 | 3.923.974 | 3.633.413 |
As of December 31, 2019, "Instruments at fair value through capital'" include the amount of 3.897.142 Euros (3.566.677 Euros December 31, 2018) corresponding to 580.476 shares of Cimóvel - Real Estate Investment Fund (9,098%), which are recorded at its fair value (the acquisition cost of those shares ascended to 3.013.947 Euros and accumulated change in fair value to 883.196 Euros). The remaining "Instruments at fair value through capital'" refer to small investments in non-listed companies. The Board of Directors consider that the net accounting value is similar to its fair value.
Additionally, the impact in equity and impairment losses in 2019 and 2018 from recording "Instruments at fair value through capital'" at fair value can be summarized as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Fair value variation | 330.465 | (99.087) |
| Effect on equity | 330.465 | (99.087) |
As of December 31, 2019 and 2018, this caption breakdown is as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Raw and subsidiary Materials | 6.772.894 | 8.885.206 |
| Production in Process | 763.239 | 932.748 |
| Finished and semi-finished Products | 2.567.925 | 1.242.750 |
| Merchandise | 98.814.645 | 90.219.827 |
| 108.918.703 | 101.280.531 | |
| Accumulated impairment losses in inventories (Note 24) | (3.448.675) | (2.221.105) |
| 105.470.028 | 99.059.426 | |
(Amounts in Euros)
| Dec-18 | ||||||
|---|---|---|---|---|---|---|
| Raw and subsidiary Materials |
Total | Merchandise | Raw and subsidiary Materials |
Total | ||
| 99.105.033 | 81.473.495 | 10.413.228 | 91.886.723 | |||
| 336.889.403 | 294.586.733 | 36.963.974 | 331.550.707 | |||
| - 42.118.294 |
37.930.598 | - | 37.930.598 | |||
| (105.587.539) | (90.219.827) | (8.885.206) | (99.105.033) | |||
| 372.525.191 | 323.770.999 | 38.491.996 | 362.262.995 | |||
| Merchandise 90.219.827 296.852.381 42.118.294 (98.814.645) 330.375.857 |
8.885.206 40.037.022 (6.772.894) 42.149.334 |
| Dec-19 | Dec-18 | ||||||
|---|---|---|---|---|---|---|---|
| Finished and semi-finished Products |
Production in Process |
Total | Finished and semi-finished Products |
Production in Process |
Total | ||
| Ending Balances | 2.567.925 | 763.239 | 3.331.164 | 1.242.750 | 932.748 | 2.175.498 | |
| Inventories adjustments | 7.052 | (30.201) | (23.149) | 14.448 | (19.818) | (5.370) | |
| Opening Balances | (1.242.750) | (932.748) | (2.175.498) | (4.432.510) | (1.135.391) | (5.567.901) | |
| Total | (1.332.227) | 199.710 | 1.132.517 | 3.175.312 | 222.461 | (3.397.773) | |
As of December 31, 2019 and 2018, the detail of this caption was as follows:
| CURRENT ASSETS | NON-CURRENT ASSETS | |||
|---|---|---|---|---|
| Dec-19 | Dec-18 | Dec-19 | Dec-18 | |
| Customers, current accounts | 52.716.981 | 56.648.436 | 608.975 | 494.293 |
| Doubtful Accounts Receivable | 10.978.343 | 8.838.044 | - | - |
| 63.695.324 | 65.486.480 | 608.975 | 494.293 | |
| Accumulated impairment losses in accounts receivable (Note 24) | (9.458.773) | (8.776.958) | - | - |
| 54.236.551 | 56.709.522 | 608.975 | 494.293 | |
Accounts receivable from customers recorded as non-current assets corresponds to the customers of the affiliated company Caetano Auto, S.A. that are being paid under formal agreements (whose terms of payment may vary between 1 to 7 years, and which bear interests).
| Dec-19 | ||||||
|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 36.836.276 | 2.029.986 | 2.110.790 | 4.720.187 | 45.697.240 | |
| Employees | 14 | - | - | 4.430 | 4.444 | |
| Independent Dealers | 7.596.637 | 20.771 | - | 6.864 | 7.624.272 | |
| Total | 44.432.927 | 2.050.757 | 2.110.790 | 4.731.481 | 53.325.956 | |
| Dec-18 | ||||||
|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 31.284.576 | 5.780.752 | 2.176.100 | 9.791.002 | 49.032.430 | |
| Employees | 77.032 | 780 | 2.732 | 200.911 | 281.455 | |
| Independent Dealers | 7.426.444 | 363.223 | 27.689 | 11.488 | 7.828.844 | |
| Total | 38.788.052 | 6.144.755 | 2.206.521 | 10.003.401 | 57.142.729 | |
Accounts receivable ageing considering impairment losses
| Dec-19 | |||||||
|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |||
| Doubtful Accounts Receivable | 116.219 | 102.497 | 26.244 | 10.733.383 | 10.978.343 | ||
| Total | 116.219 | 102.497 | 26.244 | 10.733.383 | 10.978.343 | ||
| Dec-18 | |||||||
|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |||
| Doubtful Accounts Receivable | 14.123 | 2.275 | 1.378 | 8.820.268 | 8.838.044 | ||
| Total | 14.123 | 2.275 | 1.378 | 8.820.268 | 8.838.044 | ||
| Dec-19 | |||||||
|---|---|---|---|---|---|---|---|
| Not Due | - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 20.137.752 | 24.124.247 | 1.732.833 | 1.280.080 | 6.051.043 | 53.325.956 | |
| Total | 20.137.752 | 24.124.247 | 1.732.833 | 1.280.080 | 6.051.043 | 53.325.956 | |
| Dec-18 | |||||||
|---|---|---|---|---|---|---|---|
| Not Due | - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 15.507.326 | 28.100.550 | 2.700.057 | 1.283.518 | 9.551.278 | 57.142.729 | |
| Total | 15.507.326 | 28.100.550 | 2.700.057 | 1.283.518 | 9.551.278 | 57.142.729 | |
(Amounts in Euros)
The amounts presented in the consolidated Statement of financial position are net of accumulated impairment losses to doubtful accounts receivable estimated by the Group, in accordance with its experience based on its evaluation of the economic environment at the statement of financial position date. Credit risk concentration is limited, because the customers' basis is wider and not relational. Thus, the Board of Directors understands that the accounting values of accounts receivable are similar to their respective fair value.
As of December 31, 2019 and 2018, the detail of this caption was as follows:
| Current Assets | ||
|---|---|---|
| Dec-19 | Dec-18 | |
| Down Payments to Suppliers | 36.402 | 18.621 |
| Public entities (VAT) | - | 3.051.511 |
| Other debtors | 2.501.776 | 2.748.473 |
| 2.538.178 | 5.818.605 | |
The caption "Other debtors" includes, as of December 31, 2019 and 2018, the amount of, approximately, 800.000 Euros to be received from Salvador Caetano Auto Africa, S.G.P.S., S.A.
Finally, this caption also caption includes, as of December 31, 2019, the amount of, approximately, 649.625 Euros to be received from Salvador Caetano Foundation (618.000 Euros at December 31, 2018).
(Amounts in Euros)
As of December 31,2019 and 2018, the detail of this caption was as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Accrued Income | ||
| Rappel | 1.095.844 | 1.374.158 |
| Commission | 620.339 | 508.148 |
| Fleet programs | 435.273 | 2.366.089 |
| Warranty claims | 80.066 | 159.112 |
| Assignment of staff | 31.173 | 27.842 |
| Fee's | 2.795 | 22.699 |
| Others | 357.586 | 583.031 |
| 2.623.076 | 5.041.079 | |
| Deferred expenses | ||
| Insurance | 164.588 | 178.892 |
| Interest | 130.459 | 125.116 |
| Rentals | 6.154 | 128.636 |
| Others | 456.375 | 857.657 |
| 757.576 | 1.290.301 | |
| Total | 3.380.652 | 6.331.380 |
The detail of deferred tax assets and liabilities recorded in the accompanying consolidated financial statements as of December 31, 2019 and 2018 is as follows:
| Dec-19 | ||||
|---|---|---|---|---|
| Dec-18 | Profit and Loss Impact Dec-19 |
|||
| Deferred tax assets: | ||||
| Provisions not accepted for tax purpose Defined Benefit Plan Liabilities |
296.439 1.611.745 |
56.474 | 352.913 1.611.745 |
|
| Write-off of tangible assets/inventories | 926.746 | (279.918) | 646.828 | |
| Deferred tax liabilities: | 2.834.930 | (223.444) | 2.611.486 | |
| Depreciation as a result of legal and free revaluation of fixed assets Effect of the reinvestments of the surplus in fixed assets sales |
(590.517) (113.367) |
58.965 43.290 - |
(531.552) (70.077) |
|
| Fair value of fixed assets | (898.732) (1.602.616) |
102.255 | (898.732) (1.500.361) |
|
| Net effect (Note 25) | (121.189) |
(Amounts in Euros)
| Profit and Loss Impact (deferred |
|||
|---|---|---|---|
| Dec-17 | tax) | Dec-18 | |
| Deferred tax assets: | |||
| Provisions not accepted for tax purpose | 212.335 | 84.104 | 296.439 |
| Defined Benefit Plan Liabilities | 1.611.745 | - | 1.611.745 |
| Write-off of tangible assets | 489.298 | 437.448 | 926.746 |
| 2.313.378 | 521.552 | 2.834.930 | |
| Deferred tax liabilities: | |||
| Depreciation as a result of legal and free revaluation of fixed assets | (619.498) | 28.981 | (590.517) |
| Effect of the reinvestments of the surplus in fixed assets sales | (116.914) | 3.547 | (113.367) |
| Fair value of investments fixed assets | (898.732) | - | (898.732) |
| (1.635.144) | 32.528 | (1.602.616) | |
| Net effect (Note 25) | 554.080 |
As of December 31, 2019 and 2018 there was no tax losses.
As of December 31, 2019 and 2018 tax rates used to compute current and deferred tax assets and liabilities were as follows:
| Tax rates | ||||
|---|---|---|---|---|
| 2018 | 2017 | |||
| Country of origin of affiliate: | ||||
| Portugal | 22,5% - 21% | 22,5% - 21% | ||
| Cape Verde | 25,5% | 25,5% |
Toyota Caetano Group companies with head office in Portugal, are taxed according to the Corporate Income Tax (CIT) in accordance with the Special Taxation Regimen for Groups of Companies ("Regime Especial de Tributação de Grupos de Sociedades - RETGS") as established by articles 69 and 70 of the CIT.
In accordance with the applicable legislation, the income tax returns of Toyota Caetano and other Group companies with headquarters in Portugal are subject to review and correction by the tax authorities for a period of four years. Therefore, the tax declarations since the year of 2016 and 2019 are still subject to review. Statements regarding the Social Security may be revised over a period of five years. The Board of Directors believe that the corrections that may arise from such reviews/inspections will not have a significant impact in the accompanying consolidated financial statements.
Under the terms of article 88 of the Corporate Income Tax Code, the companies with headquarters in Portugal are additionally subject to an income tax over a set of expenses at the rates foreseen in the above mentioned article.
(Amounts in Euros)
As of December 31, 2019, and 2018 cash and cash equivalents detail was the following:
| Dec-19 | Dec-18 |
|---|---|
| 122.767 | 127.757 |
| 12.570.877 | 16.947.398 |
| (162.683) | - |
| 12.530.961 | 17.075.155 |
As of December 31, 2019 and 2018, the Company's share capital, fully subscribed and paid for, consisted of 35.000.000 bearer shares, with a nominal value of 1 Euro each.
The entities with over 20% of subscribed capital are as follows:
| - Salvador Caetano – Auto - S.G.P.S., S.A. | 65,99% |
|---|---|
| - Toyota Motor Europe NV/SA | 27,00% |
During 2018 Salvador Caetano - Auto - S.G.P.S., S.A. bought 320.611 shares with a nominal value of 1 Euro each, fully subscribed and representing 0,91% of the share capital. During 2019 Salvador Caetano - Auto - S.G.P.S., S.A. bought 839.813 shares with a nominal value of 1 Euro each, fully subscribed and representing 2,3995% of the share capital.
According to the General shareholders meeting deliberation, as of April 12, 2019, was paid to shareholders a dividend of 0,20 Euros per share (7.000.000 Euros).
Commercial legislation establishes that at least 5% of the net profit of each year must be appropriated to a legal reserve until this reserve equals the statutory minimum requirement of 20% of the share capital. This reserve is not available for distribution, except in case of dissolution of the Company, but may be used in share capital increases or used to absorb accumulated losses once other reserves have been exhausted.
(Amounts in Euros)
The revaluation reserves cannot be distributed to the shareholders, except if they are completely depreciated and if the respective assets that were revaluated have been alienated.
The translation reserves reflect the currency variations during the passage of the financial statements of affiliated companies in a currency other than Euro and cannot be distributed or used to absorb losses.
The fair value reserves reflect the fair value variations of the instruments at fair value through capital and cannot be distributed or used to absorb losses (Note 9).
Refer to reserves with nature of free reserve that can be distributable according to the commercial legislation.
According to the Portuguese law, the amount of distributable reserves is determined according to the individual financial statements of Toyota Caetano Portugal, presented according to the Normas Contabilísticas e de Relato Financeiro (NCRF, Portuguese GAAP).
Movements in this caption during the year ended as of December 31, 2019 and 2018 were as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Opening Balances as of January 1 | 1.473.222 | 1.387.418 |
| Non-controlling interests acquisition | (11.610) | - |
| Net profit attributable to non-controlling interests | 52.615 | 85.804 |
| 1.514.227 | 1.473.222 | |
As of December 31, 2019 and 2018, the decomposition of the mentioned value by subsidiary company is as follows:
| % NCI | Non-controlling Interests |
Net profit attributable to Non controlling Interests |
|
|---|---|---|---|
| Caetano Auto CV | 18,76% | 863.200 | 25.093 |
| Caetano Auto | 1,57% | 651.027 | 27.522 |
| 1.514.227 | 52.615 | ||
| Dec-18 | % NCI | Non-controlling Interest |
Net profit attributable to Non-controlling Interest |
|---|---|---|---|
| Saltano S.G.P.S. | 0,02% | 4.030 | (5) |
| Caetano Auto CV | 18,76% | 838.107 | 25.855 |
| Caetano Renting | 0,02% | 464 | (117) |
| Caetano Auto | 1,60% | 630.621 | 60.071 |
| 1.473.222 | 85.804 | ||
The resume of financial information related to each subsidiary that is consolidated is presented below:
| Caetano Auto | Caetano Auto CV | |||
|---|---|---|---|---|
| Caption | Dec-19 | Dec-18 | Dec-19 | Dec-18 |
| Non - Current Assets | 59.516.127 | 56.490.292 | 1.319.976 | 1.257.814 |
| Current Assets | 67.238.194 | 90.240.546 | 4.863.635 | 5.692.940 |
| Total assets | 126.754.321 | 146.730.838 | 6.183.611 | 6.950.754 |
| Non - Current Liabilities | 7.599.200 | 8.052.611 | 98.878 | 98.878 |
| Current Liabilities | 77.801.154 | 99.202.695 | 1.527.813 | 2.322.266 |
| Equity | 41.353.967 | 39.475.532 | 4.556.920 | 4.529.610 |
| Revenues | 238.232.286 | 234.877.024 | 14.208.584 | 14.733.922 |
| Operating Results | 2.627.412 | 5.127.518 | 212.638 | 356.168 |
| Financial Results | 13.287 | 31.019 | - | (6.629) |
| Taxes | (762.264) | (1.436.915) | (185.328) | (125.871) |
| Net Income | 1.878.435 | 3.721.623 | 27.310 | 223.668 |
| Caetano Renting | Saltano | |||
| Caption | Dec-19 | Dec-18 | Dec-19 | Dec-18 |
| Non - Current Assets | 29.092.762 | 34.435.165 | - | 23.789.240 |
| Current Assets | 4.677.938 | 5.875.043 | - | 2.016.167 |
| Total assets | 33.770.700 | 40.310.208 | - | 25.805.406 |
| Non - Current Liabilities | - | 529.369 | - | - |
| Current Liabilities | 30.517.861 | 36.561.509 | - | 3.574.436 |
| Equity | 3.252.839 | 3.219.329 | - | 22.230.970 |
| Revenues | 42.935.941 | 42.240.170 | - | - |
| Operating Results | 362.206 | 477.981 | - | 2.089.542 |
| Financial Results | (338.547) | (308.190) | - | - |
| Taxes | 9.851 | 6.916 | - | 5.946 |
| Net Income | 33.509 | 176.707 | - | 2.095.488 |
As of December 31, 2019 and 2018 the caption "Loans" was as follows:
| Dec-19 | Dec-18 | ||||||
|---|---|---|---|---|---|---|---|
| Current | Non-Current | TOTAL | Current | Non-Current | TOTAL | ||
| Bank Loan | - | 10.000.000 | 10.000.000 | 29.400.000 | 10.000.000 | 39.400.000 | |
| Bank Overdrafts | 162.681 | - | 162.681 | 923.669 | - | 923.669 | |
| Car Financing | - | - | - | 2.499.961 | - | 2.499.961 | |
| Bond Loan | - | 12.500.000 | 12.500.000 | - | 12.500.000 | 12.500.000 | |
| Leases | 7.190.485 | 14.380.225 | 21.570.710 | 19.715.283 | 15.965.142 | 35.680.425 | |
| 7.353.166 | 36.880.225 | 44.233.391 | 52.538.913 | 38.465.142 | 91.004.055 | ||
The movements in bank loans, overdrafts, commercial paper programs and bond loan, during the periods ended December 31, 2019 and 2018 were as follows:
| Dec-19 | Opening Balances | Increase | Accounting policies changes IFRS16 |
Decrease | Other variations (*) | Ending Balance |
|---|---|---|---|---|---|---|
| Bank Loan | 10.000.000 | - | - | - | - | 10.000.000 |
| Bank Overdrafts | 923.669 | 162.681 | - | - | (923.669) | 162.681 |
| Car Financing | 2.499.961 | - | - | - | (2.499.961) | - |
| Guaranteed account | 10.000.000 | 10.000.000 | - | 20.000.000 | - | - |
| Confirming | - | - | - | - | - | - |
| Commercial paper | 19.400.000 | 83.000.000 | - | 102.400.000 | - | - |
| Bond Loan | 12.500.000 | - | - | - | - | 12.500.000 |
| Leases | 35.680.425 | 434.568 | 2.084.991 | 8.405.927 | (8.223.348) | 21.570.710 |
| 91.004.055 | 93.597.249 | 2.084.991 | 130.805.927 | (11.646.978) | 44.233.391 |
(*) Without impact on consolidated cash flows statement
| Dec-18 | Opening Balances | Increase | Decrease | Other variations (*) | Ending Balance |
|---|---|---|---|---|---|
| Bank Loan | 17.000.000 | - | 7.000.000 | - | 10.000.000 |
| Bank Overdrafts | 529.851 | - | - | 393.818 | 923.669 |
| Car financing | - | - | - | 2.499.961 | 2.499.961 |
| Guaranteed account | 5.000.000 | 37.000.000 | 32.000.000 | - | 10.000.000 |
| Confirming | - | 19.883.075 | 19.883.075 | - | - |
| Commercial Paper | 34.400.000 | 237.100.000 | 252.100.000 | - | 19.400.000 |
| Bond Loan | - | 12.500.000 | - | - | 12.500.000 |
| Leases | 23.008.943 | - | 7.731.336 | 20.402.818 | 35.680.425 |
| 79.938.794 | 306.483.075 | 318.714.411 | 23.296.597 | 91.004.055 |
(*) Without impact on consolidated cash flows statement
As of December 31, 2019 and 2018, the detail of bank loans, overdrafts, commercial paper programs and bond loan, as well as its conditions, were as follows:
| Dec-19 | ||||
|---|---|---|---|---|
| Description/Beneficiary Company | Used Amount | Limit | Beginning Date |
Date-Limit |
| Non-current | ||||
| Mutual Loans | ||||
| Toyota Caetano Portugal | 10.000.000 | 10.000.000 | 11/03/2016 | 5 years |
| Bond Loan | ||||
| Toyota Caetano Portugal | 12.500.000 | 12.500.000 | 09/08/2018 | 5 years |
| 22.500.000 | 22.500.000 | |||
| Current | ||||
| Guaranteed account | - | 12.000.000 | ||
| Bank Overdrafts | 162.681 | 5.500.000 | ||
| Confirming | - | 4.350.000 | ||
| Commercial Paper: | ||||
| Toyota Caetano Portugal | - | 14.000.000 | 27/02/2017(*) | 3 years |
| Toyota Caetano Portugal | - | 10.000.000 | 18/08/2015 | 5 years |
| Toyota Caetano Portugal | - | 4.000.000 | 17/07/2017 | 5 years |
| Toyota Caetano Portugal | - | 5.000.000 | 10/11/2016 | 5 years |
| Toyota Caetano Portugal | - | 4.000.000 | 24/02/2018 | 1 year |
| 162.681 | 58.850.000 | |||
| 22.662.681 | 81.350.000 | |||
| Dec-18 | ||||
|---|---|---|---|---|
| Description/Beneficiary Company | Used Amount | Limit | Beginning Date |
Date-Limit |
| Non-current | ||||
| Mutual Loans | ||||
| Toyota Caetano Portugal | 10.000.000 | 10.000.000 | 11/03/2016 | 5 years |
| Bond Loan | ||||
| Toyota Caetano Portugal | 12.500.000 | 12.500.000 | 09/08/2018 | 5 years |
| 22.500.000 | 22.500.000 | |||
| Current | ||||
| Guaranteed account | 10.000.000 | 12.000.000 | ||
| Bank Overdrafts | 923.669 | 5.500.000 | ||
| Confirming | - | 10.000.000 | ||
| Car financing | 2.499.961 | 13.500.000 | ||
| Commercial Paper: | ||||
| Toyota Caetano Portugal | 15.400.000 | 18.000.000 | 27/02/2017(*) | 3 years |
| Toyota Caetano Portugal | - | 10.000.000 | 18/08/2015 | 5 years |
| Toyota Caetano Portugal | 4.000.000 | 4.000.000 | 17/07/2017 | 5 years |
| Toyota Caetano Portugal | - | 5.000.000 | 10/11/2016 | 5 years |
| Toyota Caetano Portugal | - | 4.000.000 | 24/02/2018 | 1 year |
| 32.823.630 | 82.000.000 | |||
| 55.323.630 | 104.500.000 | |||
(*) with amortization of 2 million euros per year
(Amounts in Euros)
Then we detail the amount related to loans obtained or contracted credit lines for which real guarantees were granted for mortgages on real estate (Note 36):
Interests relating to the financial instruments mentioned above are indexed to Euribor (floor zero), plus a spread which varies between 0,85% and 2,75%.
The Group and its affiliates have available credit facilities as of December 31, 2019 amounting to approximately 81 Million Euros, which can be used in future operational activities and to fulfil financial commitments. There are no restrictions on the use of these facilities. This amount is applied in several financial institutions and there is no excessive concentration in any of them.
(Amounts in Euros)
The item "Leases" (current and non-current) is related to the Group's responsibilities as lessee with respect to the right to use facilities and equipment.
The detail of this caption, as well as the reimbursement plan can be summarized as follows:
| Current | Non current | |||||||
|---|---|---|---|---|---|---|---|---|
| Contract | Leases | 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | TOTAL | TOTAL |
| 2028278 | Commercial facilities | |||||||
| Capital | 98.632 | 119.047 | - | - | 119.047 | 217.679 | ||
| Interests | 1.294 | 551 | - | - | 551 | 1.845 | ||
| 5653 | Commercial facilities | |||||||
| Capital | 24.995 | 25.385 | 25.781 | 26.184 | 316.791 | 394.141 | 419.136 | |
| Interests | 6.320 | 5.929 | 5.533 | 5.131 | 26.912 | 43.505 | 49.825 | |
| 626064 | Commercial facilities | |||||||
| Capital | 178.402 | 184.747 | 191.318 | 198.122 | 145.117 | 719.304 | 897.706 | |
| Interests | 27.974 | 21.629 | 15.058 | 8.253 | 1.373 | 46.313 | 74.287 | |
| 2032103 | Commercial facilities | |||||||
| Capital | 9.295 | 9.805 | 44.383 | - | - | 54.188 | 63.483 | |
| Interests | 2.997 | 2.487 | 650 | - | - | 3.137 | 6.134 | |
| 30000343 | Commercial facilities | |||||||
| Capital | 42.431 | 43.288 | 44.161 | 45.053 | 346.074 | 478.576 | 521.007 | |
| Interests | 10.033 | 9.176 | 8.302 | 7.411 | 24.808 | 49.697 | 59.730 | |
| 2017554 | Commercial facilities | |||||||
| Capital | 46.658 | 142.212 | - | - | - | 142.212 | 188.870 | |
| Interests | 4.190 | 1.399 | - | - | - | 1.399 | 5.589 | |
| 105149 | Commercial facilities | |||||||
| Capital | 34.150 | 16.729 | - | - | - | 16.729 | 50.879 | |
| Interests | 1.104 | 148 | - | - | - | 148 | 1.252 | |
| Cimóvel | Properties | |||||||
| Capital | 769.447 | - | - | - | - | - | 769.447 | |
| Interests | - | - | - | - | - | - | - | |
| Various | Properties | |||||||
| Capital | 18.122 | - | - | - | - | 18.122 | ||
| Interests | - | - | - | - | - | |||
| Various | Industrial Equipment | |||||||
| Capital | 5.968.352 | 4.770.555 | 3.810.502 | 2.167.555 | 1.707.416 | 12.456.028 | 18.424.380 | |
| Interests | 372.543 | 239.755 | 136.753 | 65.465 | 17.627 | 459.600 | 832.143 | |
| Total Capital | 7.190.485 | 5.311.768 | 4.116.145 | 2.436.914 | 2.515.398 | 14.380.225 | 21.570.710 | |
| Total Interests | 426.455 | 281.074 | 166.296 | 86.260 | 70.720 | 604.350 | 1.030.805 |
(Amounts in Euros)
| Dec-19 | |||||||
|---|---|---|---|---|---|---|---|
| 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | Total | ||
| Mutual Loans Bank Overdrafts Bond Loan Leases |
- 162.681 - 7.190.485 |
10.000.000 - - 5.311.768 |
- - - 4.116.145 |
- - - 2.436.914 |
- - 12.500.000 2.515.398 |
10.000.000 162.681 12.500.000 21.570.710 |
|
| Total Loans | 7.353.166 | 15.311.768 | 4.116.145 | 2.436.914 | 15.015.398 | 44.233.391 |
| Dec-18 | ||||||
|---|---|---|---|---|---|---|
| 12m | 12 – 24m | 24 -36m | 36 – 48 m | > 48m | Total | |
| Mutual Loans | - | - | 10.000.000 | - | - | 10.000.000 |
| Guaranteed account | 10.000.000 | - | - | - | - | 10.000.000 |
| Bank Overdrafts | 923.669 | - | - | - | - | 923.669 |
| Car Financing | 2.499.961 | - | - | - | - | 2.499.961 |
| Commercial Paper | 19.400.000 | - | - | - | - | 19.400.000 |
| Bond Loan | - | - | - | - | 12.500.000 | 12.500.000 |
| Leases | 19.715.283 | 6.028.237 | 4.455.494 | 3.098.113 | 2.383.298 | 35.680.425 |
| Total Loans | 52.538.913 | 6.028.237 | 14.455.494 | 3.098.113 | 14.883.298 | 91.004.055 |
Interests
Dec-19 12m 12 - 24m 24 - 36m 36 - 48m >48m Total Mutual Loans 226.208 55.625 - - - 281.833 Bond Loan 318.576 315.972 316.840 316.840 - 1.268.229 Leases 426.455 281.074 166.296 86.260 70.720 1.030.805 Total interests 971.240 652.671 483.137 403.100 70.720 2.580.868
| Dec-18 | |||||||
|---|---|---|---|---|---|---|---|
| 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | Total | ||
| Mutual Loans | 220.521 | 221.125 | 54.375 | - | - | 496.021 | |
| Bond Loan | 316.840 | 318.576 | 315.972 | 316.840 | 316.840 | 1.585.068 | |
| Leases | 693.240 | 340.184 | 202.951 | 101.852 | 96.820 | 1.435.047 | |
| Total interests | 1.230.601 | 879.885 | 573.298 | 418.692 | 413.660 | 3.516.136 | |
(Amounts in Euros)
As of December 31, 2019 and 2018 this caption was composed of current accounts with suppliers, which end at short term.
The Group, relating to financial risk management, has implemented policies to ensure that all liabilities are paid for within the defined payment period.
As of December 31, 2019 and 2018 the detail of other creditors was as follows:
| Current Liabilities | ||||
|---|---|---|---|---|
| Dec-19 | Dec-18 | |||
| Public Entities: | ||||
| Income Taxes withheld | 412.651 | 376.634 | ||
| Value Added Taxes | 11.686.476 | 9.438.099 | ||
| Vehicles Tax | 2.149.151 | 2.275.238 | ||
| Custom Duties | - | 381 | ||
| Employee's social contributions | 708.501 | 682.841 | ||
| Others | 183.742 | 221.740 | ||
| Sub-total | 15.140.521 | 12.994.933 | ||
| Shareholders | 20.194 | 15.542 | ||
| Advances from Customers | 1.063.582 | 736.091 | ||
| Other Creditors | 35.630.173 | 1.037.283 | ||
| Sub-total | 36.713.949 | 1.788.916 | ||
| 51.854.470 | 14.783.849 | |||
There are no debts related to public entities (State and Social Security).
(Amounts in Euros)
As of December 31,2019 and 2018 the caption public entities can be summarized as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Current Assets | ||
| Public Entities: | ||
| Income Tax Receivable | 262.011 | - |
| 262.011 | - | |
| Current Liabilities | ||
| Public Entities: | ||
| Income Tax Payable | - | 1.939.181 |
| - | 1.939.181 | |
The aforementioned value in 2019 of estimated tax are related to Special Taxation Regimen for Groups of Companies ("RETGS") (1.9 million euros in 2018).
As of December 31, 2019 and 2018 the caption "Other Current Liabilities" was as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Accrued Cost | ||
| Vacation pay and bonus | 6.049.904 | 5.993.832 |
| Advertising Campaigns | 1.392.856 | 3.594.310 |
| Commission | 1.020.731 | 967.344 |
| Accrual for Vehicles Tax | 773.973 | 804.876 |
| Advance External Supplies and Services | 600.851 | 489.929 |
| Supply costs | 541.486 | 363.377 |
| Rappel charges attributable to fleet managers | 448.447 | 486.430 |
| Specialization cost assigned to vehicles sold | 440.852 | 779.842 |
| Insurance | 280.273 | 220.314 |
| Interest | 139.720 | 236.354 |
| Municipal Property Tax | 116.000 | 126.000 |
| Royalties | 68.816 | 71.170 |
| Others | 1.607.063 | 2.505.080 |
| 13.480.972 | 16.638.858 | |
| Deferred Income | ||
| Vehicle maintenance contracts | 7.511.764 | 5.844.505 |
| Advertising recovery | 26.711 | 29.283 |
| Subsidy granted | 26.449 | 28.653 |
| Interest Charged to Customers | 20.256 | 16.832 |
| Others | 348.550 | 176.425 |
| 7.933.730 | 6.095.698 | |
| Total | 21.414.702 | 22.734.556 |
(Amounts in Euros)
Toyota Caetano (together with other associated and related companies) incorporated by public deed dated December 29, 1988, the Salvador Caetano Pension Fund, which was subsequently updated in February 2, 1994, in April 30,1996, in August 9, 1996, in July 4, 2003, in February 2, 2007, in December 30, 2008, December 23, 2011 and in December 31, 2013.
As of December 31, 2019, the following companies of Toyota Caetano Group were associates of the Salvador Caetano Pension Fund:
The Pension Fund was set up to, while Toyota Caetano Group maintains the decision to make contributions to the referred fund, provide employees (beneficiaries), at their retirement date, the right to a pension complement, which is not subject to update and is based on a percentage of the salary, among other conditions. To cover these responsibilities, it was constituted an Independent Fund (managed by BPI Vida e Pensões, S.A.).
However, following a request to change the functioning of these compensations, requested from the ISP - Instituto de Seguros de Portugal, this Defined Benefit Plan started to cover, as of January 1, 2008, only current retired workers, former employees of the Group with "deferred pensions" and the current employees and staff of the Group over 50 years of age and at least 15 years of service to the Group.
The actuarial presumptions used by the fund manager include, the Mortality Table and disability TV 73/77 and SuisseRe 2001, respectively, as well as well as salary increase rate, pensions increase rate and discount rate of 1%, 0% and 1,57%, respectively. In 2017, the salary increase rate, pensions increase rate and discount rate were 1%, 0% and 1,6%, respectively.
(Amounts in Euros)
The movement of the Fund responsibilities of the Group with the Defined benefit plan in 2019 and 2018 can be summarized as follows:
| Liability at 1/1/2018 | 35.024.830 |
|---|---|
| Current services cost | 74.424 |
| Interest cost | 541.905 |
| Actuarial (gains)/losses | (446.442) |
| Pension payments | (2.460.403) |
| Others | 84.524 |
| Liability at 31/12/2018 | 32.818.838 |
| Liability at 1/1/2019 | 32.818.838 |
| Current services cost | 90.168 |
| Interest cost | 496.745 |
| Actuarial (gains)/losses | (38.844) |
| Pension payments | (2.538.353) |
| Transfers | (68.227) |
| Others | 1.513.976 |
| Liability at 31/12/2019 | 32.274.303 |
The allocation of this amount during 2019 and 2018 to both plans (Defined benefit plan and Defined contribution plan) can be summarized as follows:
| Defined Benefit Plan | Defined Contribution Plan |
Total | |
|---|---|---|---|
| Value of the Fund at 31 December 2017 | 27.510.086 | 12.745.110 | 40.255.196 |
| Contributions | - | 126.481 | 126.481 |
| Contributions of Reserve Account | - | 589.461 | 589.461 |
| Real recovery of the plan assets | 555.556 | 321.859 | 877.415 |
| Interests | 421.669 | - | 421.669 |
| Pension payments | (2.538.219) | (326.869) | (2.865.088) |
| Transfers to other associate member account | (23.369) | - | (23.369) |
| Use of reserve account | - | (589.461) | (589.461) |
| Others | - | (494) | (494) |
| Value of the Fund at 31 December 2018 | 25.925.723 | 12.866.087 | 38.791.810 |
| Contributions | 442.599 | 315.726 | 758.325 |
| Real recovery of the plan assets | 1.628.053 | 437.169 | 2.065.222 |
| Interests | 388.523 | 592.661 | 981.184 |
| Pension payments | (2.551.542) | (462.199) | (3.013.741) |
| Transfers to other associate member account | - | (9.331) | (9.331) |
| Plan liquidation | (68.227) | - | (68.227) |
| Value of the Fund at 31 December 2019 | 25.765.129 | 13.740.113 | 39.505.242 |
(Amounts in Euros)
As of December 31, 2019 and 2018, the breakdown of the asset portfolio of the Fund that covers the defined benefit plan was as follows:
| Asset Portfolio | Portfolio Weight | Value dec-19 | Portfolio Weight | Value dec-18 |
|---|---|---|---|---|
| Stocks | 11,60% | 2.988.754 | 10,53% | 2.729.978 |
| Bonds | 35,80% | 9.223.916 | 36,11% | 9.361.779 |
| Real Estate | 41,40% | 10.666.763 | 39,44% | 10.225.105 |
| Cash | 4,80% | 1.236.726 | 7,04% | 1.825.171 |
| Other Assets | 6,40% | 1.648.968 | 6,88% | 1.783.690 |
| Total | 100,00% | 25.765.127 | 100,00% | 25.925.723 |
At December 31, 2019, the investments with an individual weight greater than 5% of the total portfolio of assets in the Fund that covers the defined benefit plan was as follows:
| Asset | Portfolio Weight | Value |
|---|---|---|
| 41,40% | 10.666.763 | |
| Cimóvel - Fundo de Investimento Imobiliário Fechado |
The evolution of the Group's responsibilities in the defined benefit plan and the assets of the Fund allocated can be summarized as follows:
| Defined benefit plan | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Responsibility amount | 32.274.303 | 32.818.838 | 35.024.830 | 35.367.964 | 33.997.681 | 33.574.520 | 29.059.458 |
| Amount of defined benefit plan pension Fund | 25.765.129 | 25.925.723 | 27.510.086 | 27.541.632 | 28.297.093 | 29.075.997 | 28.855.219 |
The net obligations of Toyota Caetano Portugal Group evidenced above is safeguarded through a provision recorded in the amount of 9.476.000 Euros, reflected in the statement of financial position, in the item Pension Fund Liabilities.
Movements occurred in provisions during the years ended as of December 31, 2019 and 2018 were as follows:
| Dec-19 | |||||
|---|---|---|---|---|---|
| Opening Balances |
Increases | Decreases | Other regularizations |
Ending Balances |
|
| Accumulated impairment losses in investments | 2.780.809 | - | - | (100.000) | 2.680.809 |
| Accumulated impairment losses in accounts receivable (Note 11) | 8.776.958 | 786.236 | (1.676) | (102.745) | 9.458.773 |
| Accumulated impairment losses in inventories (Note 10) | 2.221.105 | 1.446.195 | (394) | (218.231) | 3.448.675 |
| Provisions | 881.547 | 217.780 | - | (154.555) | 944.772 |
(Amounts in Euros)
| Dec-18 | |||||
|---|---|---|---|---|---|
| Opening Balances |
Increases | Decreases | Other regularizations |
Ending Balances |
|
| Accumulated impairment losses in investments Accumulated impairment losses in accounts receivable (Note 11) Accumulated impairment losses in inventories (Note 10) Provisions |
2.780.809 9.184.332 1.452.410 514.525 |
- 303.056 1.002.950 695.982 |
- (189.918) (153.406) (200.014) |
- (520.512) (80.849) (128.946) |
2.780.809 8.776.958 2.221.105 881.547 |
The variation observed in the caption impairment losses is related essentially with write-off of impairments in accounts receivable.
The income tax for the year ended as of December 31, 2019 and 2018 was as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Income Tax Deferred income taxes (Note 14) |
4.578.311 121.189 |
5.315.895 (554.080) |
| 4.699.500 | 4.761.815 | |
Then is presented the decomposition of current income tax expense (see additional information in note 25):
| Total Income Tax | Dec-19 | Dec-18 |
|---|---|---|
| Insufficient taxes estimation | 300.036 | - |
| Excess taxes estimation | (72.411) | - |
| Tax Refunds | (65.940) | (439) |
| Current taxes estimation (Note 20) | 4.416.627 | 5.316.334 |
| Deferred income taxes (Note 14) | 121.188 | (554.080) |
| 4.699.500 | 4.761.815 | |
The reconciliation of the earnings before taxes of the years ended at December 31, 2019 and 2018 can be summarized as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Profit before taxation | 16.346.099 | 17.634.378 |
| Tax on profit | 22,50% | 22,50% |
| Theoretical tax charge | 3.677.872 | 3.967.735 |
| Accounting surplus | (357.933) | (560.569) |
| Fiscally surplus | 136.939 | 123.498 |
| Non-deductible expenses | 550.301 | 233.459 |
| Fair value adjustments | (69.398) | 20.808 |
| Fiscally adjustments | 3.899 | (2.742) |
| Depreciation not taxed | 8.609 | 79.255 |
| Non-deductible provisions | 14.041 | 119.494 |
| Others | (330.384) | 404.901 |
| Effective Tax | 3.633.946 | 4.385.839 |
| Additional Income tax | 782.681 | 930.495 |
| Excess/Insufficient tax | 227.625 | - |
| Tax Refunds | (65.940) | (439) |
| Income tax | 4.578.312 | 5.315.895 |
| Deferred income taxes | 121.188 | (554.080) |
| Effective tax charge | 4.699.500 | 4.761.815 |
| Effective tax rate | 28,75% | 27,00% |
The earnings per share for the year ended as of December 31, 2019 and 2018 were computed based on the following amounts:
| Dec-19 | Dec-18 | |
|---|---|---|
| Net Income Basic Diluted |
11.646.599 11.646.599 |
12.872.563 12.872.563 |
| Number of shares | 35.000.000 | 35.000.000 |
| Earnings per share (basic and diluted) | 0,333 | 0,368 |
During 2019 and 2018 there were no changes in the number of shares outstanding.
(Amounts in Euros)
The main information relating to the business segments existing on December, 2019 and 2018, prepared according to the same accounting policies and criteria adopted in the preparation of the consolidated financial statements, is as follows:
| 201 9 |
|||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NA TIO NA L |
FO RE IGN |
CO NS OL IDA TE D |
|||||||||||||||||||||||||||||
| Ve hic les Ind rial ust me |
uip eq |
nt Oth ers |
Ve hic |
les | Ind ust |
rial uip eq me |
nt | RE MO VA LS |
|||||||||||||||||||||||
| Ind ust ry |
Co ial mm erc |
Se rvic es |
Re l nta |
Ma chi nes |
Se rvic es |
Re l nta |
Ind ust ry |
Co ial mm erc |
chi ma nes |
Se rvic es |
Re l nta |
||||||||||||||||||||
| OF PR IT |
|||||||||||||||||||||||||||||||
| Tu rno ver |
56. 023 |
5 01. 202 .75 5 |
22. 805 .05 3 |
40. 991 .94 8 |
18. 153 .35 8 |
5.5 25. 169 |
1 5.3 74. 754 |
- | 45. 748 .62 9 |
21. 004 .43 0 |
327 .45 7 |
20. 468 |
8.8 09 |
( 192 .68 1.8 57) |
478 .53 6.9 97 |
||||||||||||||||
| Inc om e |
|||||||||||||||||||||||||||||||
| Op tion al i era nco me |
11. 725 |
12. 517 .16 4 |
287 .31 1 |
263 .90 7 |
1.3 17. 830 |
2 .78 1.5 49 |
936 .75 2 |
( ) 10. 868 |
( ) 1.0 72. 459 |
309 .24 0 |
30. 265 |
12. 888 |
5.0 44 |
902 .33 8 |
18. 292 .68 5 |
||||||||||||||||
| Fin ial Inc anc om e |
( 157 ) |
( 1.3 54. 312 ) |
( 30. 809 ) |
( 313 .01 7) |
( 36. 596 ) |
( 16. 126 ) |
( 39. 885 ) |
( 59) |
( 136 .62 8) |
( 19. 125 ) |
( 976 ) |
( 61) |
( 27) |
1.1 93 |
( 1.9 46. 586 ) |
||||||||||||||||
| Ne t in ith lling int ntro sts com e w non -co ere |
11. 567 |
6.9 03. 988 |
187 .31 7 |
( 41. 238 ) |
1.2 81. 234 |
2 .76 5.4 23 |
898 .84 6 |
( 11. 059 ) |
( 1.2 09. 087 ) |
202 .00 3 |
29. 289 |
12. 827 |
5.0 17 |
610 .47 3 |
11. 646 .59 9 |
||||||||||||||||
| Tot al c olid ate d a ts ons sse |
21. 084 .29 6 |
269 .03 2.3 13 |
12. 312 .17 7 |
29. 780 .35 1 |
6.5 06. 966 |
1 .99 4.4 75 |
26. 181 .18 6 |
46. 189 .84 7 |
- | 6.3 27. 927 |
- | - | - | ( 108 .91 0.3 23) |
310 .49 9.2 14 |
||||||||||||||||
| Tot al c olid d li abi litie ate ons s |
182 .63 1 |
162 .15 0.0 79 |
8.2 90. 436 |
2 9.4 58. 817 |
231 .16 0 |
317 .87 1 |
29. 342 .53 4 |
15. 808 |
- | 1.6 25. 840 |
- | - | - | ( 63. 954 .54 4) |
167 .66 0.6 31 |
||||||||||||||||
| Ca ital p ex pen ses |
843 .98 4 |
8.6 65. 679 |
880 .48 6 |
4.3 26. 108 |
- | 115 .71 6 |
6.9 59. 346 |
1.6 79 |
- | 241 .35 6 |
- | - | - | ( 7) 493 .13 |
21. 541 .21 7 |
||||||||||||||||
| De cia tion pre s |
709 .12 9 |
6.4 11. 249 |
587 .46 9 |
9.7 52. 931 |
68. 172 |
66. 157 |
7.4 01. 522 |
1.1 20 |
- | 175 .76 0 |
- | - | - | ( 442 .60 4) |
24. 730 .90 5 |
||||||||||||||||
(Amounts in Euros)
| 201 8 |
|||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NA TIO NA L |
FO | RE IGN |
|||||||||||||
| Ve hic |
les | Ind | rial uip ust eq |
nt me |
Oth | Ve | hic les |
Ind ust |
rial uip eq |
nt me |
EL IMI NA TIO NS |
CO NS OL IDA TE D |
|||
| Ind ust ry |
Co ial mm erc |
Se rvic es |
Re l nta |
Ma chi nes |
Se rvic es |
Re l nta |
ers | Ind ust ry |
Co ial mm erc |
chi ma nes |
Se rvic es |
Re l nta |
|||
| PR OF IT |
|||||||||||||||
| Tu rno ver |
91. 034 |
504 .47 4.4 53 |
16. 653 .01 5 |
40. 375 .82 8 |
15. 629 .41 6 |
5.1 06. 987 |
14. 996 .22 8 |
- | 47. 360 .20 2 |
24. 438 .26 5 |
143 .72 8 |
25. 230 |
7.4 25 |
( 209 .28 7.6 89) |
460 .01 4.1 22 |
| Inc om e |
|||||||||||||||
| Op tion al i era nco me |
406 | 14. 635 .43 9 |
356 .04 6 |
390 .73 0 |
1.2 49. 953 |
3.0 47. 468 |
892 .98 0 |
( 25. 190 ) |
20. 613 |
697 .47 3 |
21. 041 |
13. 706 |
2.7 15 |
( 2.1 66. 120 ) |
19. 137 .26 0 |
| Fin ial Inc anc om e |
6.4 78 |
( 923 .54 3) |
9.2 12 |
( 298 .48 7) |
( 39. 036 ) |
( 17. 072 ) |
( 42. 674 ) |
32 | ( 163 .44 3) |
( 33. 849 ) |
( 466 ) |
( 89) |
( 23) |
78 | ( 1.5 02. 882 ) |
| Ne t in ith lling int ntro sts com e w non co ere |
5.1 08 |
10. 176 .50 2 |
263 .51 6 |
98. 037 |
898 .37 5 |
2.2 48. 241 |
651 .97 6 |
( 19. 566 ) |
( 105 .96 5) |
456 .22 0 |
15. 265 |
10. 102 |
1.9 98 |
( 1.8 27. 246 ) |
12. 872 .56 3 |
| Tot al c olid d a ate ts ons sse |
27. 259 .33 3 |
315 .45 3.8 24 |
10. 389 .52 3 |
36. 815 .46 1 |
6.9 17. 401 |
1.9 57. 891 |
27. 607 .85 1 |
64. 562 .01 5 |
- | 7.6 00. 021 |
- | - | - | ( 178 .51 0.8 29) |
320 .05 2.4 91 |
| Tot al c olid d li abi litie ate ons s |
4.9 10. 963 |
212 .77 3.6 62 |
7.5 94. 391 |
36. 648 .68 1 |
1.7 48. 652 |
270 .18 5 |
26. 774 .12 2 |
3.6 00. 849 |
- | 2.8 95. 736 |
- | - | - | ( 115 .03 7.8 79) |
182 .17 9.3 62 |
| Ca ital p ex pen ses |
554 .69 0 |
13. 076 .57 5 |
859 .23 5 |
18. 474 .89 5 |
- | 118 .85 9 |
5.0 30. 494 |
2.9 88 |
- | 149 .93 6 |
- | - | - | ( 399 .45 5) |
37. 868 .21 7 |
| De cia tion pre s |
717 .60 5 |
1.6 86. 726 |
2.1 35. 840 |
11. 968 .68 4 |
71. 145 |
66. 098 |
6.2 31. 665 |
630 | - | 176 .02 3 |
- | - | - | ( 8) 104 .79 |
22. 949 .61 8 |
The line "Turnover" includes Sales, Service Rendered and the amount of about 13.418.442Euros (13.101.962 Euros as of December 31, 2018) related to equipment rentals accounted in Other Operating Income (Note 31).
The column "Eliminations" mainly includes the elimination of transactions between Group companies included in consolidation, mainly belonging to Vehicles segment.
There is no revenue associated with transactions between the motor vehicle segment and the industrial equipment segment.
60
(Amounts in Euros)
The detail of sales and services rendered by geographic markets, during the years ended as of December 31, 2019 and 2018, was as follows:
| Dec-19 | Dec-18 | |||
|---|---|---|---|---|
| Market | Amount | % | Amount | % |
| National | 404.451.607 | 86,96% | 383.699.911 | 85,86% |
| Belgium | 45.616.883 | 9,81% | 47.145.133 | 10,55% |
| African Countries with Official Portuguese Language | 14.474.159 | 3,11% | 15.493.747 | 3,47% |
| Spain | 103.130 | 0,02% | 59.068 | 0,01% |
| United Kingdom | 11.369 | 0,00% | 37.108 | 0,01% |
| Germany | 6.500 | 0,00% | 8.667 | 0,00% |
| Others | 454.907 | 0,10% | 431.176 | 0,10% |
| 465.118.555 | 100,00% | 446.874.810 | 100,00% | |
Given the nature of the Group's business, revenue is all recorded "point in time" with the exception of a total of 8.232.175 euros related to the services rendered by the subsidiary Caetano Renting whose revenue is recognized "over the time".
As of 2019, Finance and Insurance became part of the Group's current activity, which until then was considered as supplementary income.
(Amounts in Euros)
As of December 31, 2019 and 2018, the caption "External supplies and services" was as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Subcontracts | 1.752.945 | 1.777.920 |
| Specialized Services | 22.340.537 | 19.193.567 |
| Professional Services | 5.831.829 | 6.693.830 |
| Advertising | 12.524.056 | 8.138.044 |
| Vigilance and Security | 527.153 | 469.186 |
| Professional Fees | 1.011.418 | 928.391 |
| Commissions | 269.353 | 514.766 |
| Repairs and Maintenance | 2.176.728 | 2.449.350 |
| Materials | 996.574 | 858.248 |
| Utilities | 3.266.686 | 3.394.927 |
| Travel and transportation | 3.725.795 | 3.528.700 |
| Traveling expenses | 1.972.728 | 1.905.850 |
| Personnel transportation | 106.624 | 99.112 |
| Transportation of materials | 1.646.443 | 1.523.738 |
| Other supplies | 12.488.144 | 13.560.878 |
| Short-term and low-value leases | 1.356.723 | 2.465.913 |
| Communication | 712.508 | 716.925 |
| Insurance | 1.575.926 | 1.510.749 |
| Royalties | 379.216 | 446.094 |
| Notaries | 31.193 | 25.650 |
| Cleaning and comfort | 928.778 | 843.864 |
| Other Services | 7.503.800 | 7.551.683 |
| 44.570.681 | 42.314.240 |
Payroll expenses are decomposed as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Payroll Management | 714.825 | 582.204 |
| Payroll Personnel | 28.181.804 | 27.941.095 |
| Pensions Benefits Plan | 1.299.548 | 836.970 |
| Indemnities | 413.884 | 715.082 |
| Social Security Contribution | 6.942.503 | 7.275.895 |
| Workmen´s Insurance | 430.026 | 470.425 |
| Others | 3.388.339 | 3.342.526 |
| 41.370.929 | 41.164.197 | |
During 2019 and 2018, the average number of personnel was as follows:
| Personnel | Dec-19 | Dec-18 |
|---|---|---|
| Employees | 1.084 | 1.074 |
| Workers | 453 | 455 |
| 1.537 | 1.529 | |
As of December 31, 2019 and 2018, the caption "Other operating income" was as follows:
| Other operating income | Dec-19 | Dec-18 |
|---|---|---|
| Lease Equipment | 13.418.442 | 13.101.962 |
| Guarantees recovered (Toyota) | 9.216.974 | 12.387.595 |
| Rents charged | 4.344.359 | 3.937.061 |
| Work for the Company | 3.804.290 | 3.525.438 |
| Subsidies | 3.202.058 | 2.883.793 |
| Advertising expenses and sales promotion recovered | 2.478.772 | 4.085.723 |
| Services provided | 2.196.422 | 1.960.062 |
| Expenses recovered | 2.170.939 | 1.925.722 |
| Gains in the disposal Tangible Fixed Assets | 366.171 | 1.480.795 |
| Commissions | 101.410 | 4.999.858 |
| Others | 242.212 | 296.036 |
| 41.542.049 | 50.584.045 | |
From the table presented above, we have:
As of December 31, 2019 and 2018, the caption "Other operating expenses" was as follows:
| Other Operating Expenses | Dec-19 | Dec-18 |
|---|---|---|
| Taxes | 1.332.581 | 1.143.367 |
| Corrections to previous years | 346.677 | 21.241 |
| Losses in other non-financial investments | 61.486 | 170.258 |
| Fines and penalties | 34.345 | 501.021 |
| Losses in Inventories | 33.035 | 73.600 |
| Subscriptions | 26.628 | 27.866 |
| Bad debts | 14.180 | 384.280 |
| Prompt payment discounts granted | 9.539 | 6.515 |
| Donations | 7.743 | 332.580 |
| Losses in other investments | 1.815 | - |
| Others | 1.548.884 | 1.639.703 |
| 3.416.913 | 4.300.431 | |
Consolidated net financial results as of December 31, 2019 and 2018 were as follows:
| Expenses and Losses | Dec-19 | Dec-18 |
|---|---|---|
| Interest | 1.758.306 | 1.691.988 |
| Other Financial Expenses | 213.355 | 164.407 |
| 1.971.661 | 1.856.395 | |
| Dec-19 Dec-18 |
|---|
| 25.075 13.813 339.700 |
| 353.513 |
| - 25.075 |
(Amounts in Euros)
We summarize in the table below a resume of financial instruments of Toyota Caetano Group as of December 31, 2019 and 2018:
| Financial Assets at amortised cost | Financial Liabilities at amortised cost | ||||
|---|---|---|---|---|---|
| Note | Dec-19 | Dec-18 | Dec-19 | Dec-18 | |
| Instruments at fair value through capital | 9 | 3.923.974 | 3.633.413 | - | - |
| Accounts Receivable | 11 | 54.845.526 | 57.203.815 | - | - |
| Other Debtors - Current | 12 | 2.501.776 | 2.748.473 | - | - |
| Other Debtors - Non-Current | 12 | - | - | - | - |
| Other Current Assets | 13 | 2.623.076 5.041.079 |
- | - | |
| Bank Loan | 18 | 10.000.000 | 39.400.000 | ||
| Bond Loan | 18 | - | - | 12.500.000 | 12.500.000 |
| Leases | 18 | - | - | 21.570.710 | 35.680.425 |
| Bank Overdrafts | 18 | - | - | 162.681 | 923.669 |
| Car Financing | 18 | - | - | - | 2.499.961 |
| Other Creditors - Current | 20 | - | - | 35.650.367 | 1.052.827 |
| Accounts Payable | 19 | - | - | 38.236.935 | 39.907.558 |
| Other Current Liabilities | 22 | - | - | 7.431.068 | 10.645.026 |
| Cash and Cash Equivalents | 15 | 12.693.644 | 17.075.155 | - | - |
| 76.587.996 | 85.701.935 | 125.551.761 | 142.609.466 | ||
Financial Instruments at Fair Value
| Assets at fair value through comprehensive income |
|||
|---|---|---|---|
| Note | Dec-19 | Dec-18 | |
| Instruments at fair value through capital | 9 | 3.923.974 | 3.633.413 |
| 3.923.974 | 3.633.413 | ||
| Instruments at fair value through capital | ||
|---|---|---|
| At fair value | At cost | |
| Cimóvel Fund | 3.897.142 | - |
| Others | - | 26.832 |
According to the paragraph 93 of IFRS 13, we provide below, the disclosure of classification and measurement of financial instruments' fair value, by hierarchy level:
Level 1 – quoted prices – Instruments at fair value through capital: 3.897.142 Euros (3.566.677 Euros in 2018);
Impact on the Income Statement and Equity
| Impact on equity | ||
|---|---|---|
| Dec-19 | Dec-18 | |
| Instruments at fair value through capital | 330.465 | (99.087) |
| 330.465 | (99.087) | |
During the period of 2019 and 2018, the minimum payments for operational leases were as follows:
| 31/12/2018 | Practical expedient IFRS 16 < 1 year |
Unwinding effect | Other variations |
01/01/2019 | |
|---|---|---|---|---|---|
| Minimum payments of operational lease | 3.538.155 | 1.026.096 | 79.238 | 347.830 | 2.084.991 |
| 3.538.155 | 1.026.096 | 79.238 | 347.830 | 2.084.991 | |
(Amounts in Euros)
Balances and transactions between the Parent Company and its affiliates, which are related entities to the Parent Company, were eliminated in the consolidation process, so they will not be disclosed in this Note. Balances and transactions details between the Group and the related parties (through Salvador Caetano Group, S.G.P.S, S.A.) can be summarized as follows:
| 201 9 |
Co mm erc |
ial De bts |
Pro | duc ts |
Fix ed |
ets ass |
Se rvic |
es | Oth | ers |
|---|---|---|---|---|---|---|---|---|---|---|
| Co mp any |
Re cei vab le |
Pay abl e |
Sa les |
Pur cha ses |
Pur cha ses |
Re cei vab le |
Pay abl e |
Sa les |
Sa les |
Pur cha ses |
| Am orim Br ito & S ard inh Lda a, |
738 | - | - | - | - | - | - | - | - | 7.2 00 |
| Atlâ ntic Co anh ia P de Pes S. A. ortu a - mp gue sa ca, |
5.1 73 |
- | - | - | - | - | - | - | - | - |
| ária S.A Au to P artn Imo bili er , |
1.5 95 |
23. 900 |
- | - | - | - | - | 33. 940 |
- | - |
| Ca -Ca bo Ve rde Re nt-a Lda r, |
199 .55 3 |
41. 767 |
441 .17 1 |
391 .76 4 |
- | - | 675 | 229 .45 4 |
- | - |
| Ca Act ive S.A eta no , |
3.4 14 |
- | 1.4 87 |
- | - | - | 12. 035 |
2.1 10 |
- | 322 |
| Ca Ae ic, S.A eta aut no ron |
140 .14 2 |
85 | 2.0 96 |
- | - | 6.0 00 |
32. 841 |
210 .93 8 |
- | 685 .53 1 |
| Ca Bav iera Co mé rcio de Au óve is, S.A eta tom no - |
212 .29 5 |
113 .04 8 |
165 .55 5 |
559 .95 2 |
- | - | 45. 438 |
68. 593 |
1.6 84 |
235 .74 0 |
| Ca Cit S.A eta no y, |
716 .93 8 |
62. 835 |
3.2 82. 334 |
26. 183 |
- | 153 .75 7 |
623 | 114 .73 2 |
136 .51 9 |
2.3 07 |
| Ca Driv Sp e U rba S.A eta ort no e, n, |
11. 659 |
107 .49 6 |
( 26. 471 ) |
73. 548 |
- | - | ( 343 ) |
368 .58 2 |
- | 6.2 17 |
| Ca Ene S.A eta no rgy , |
30. 375 |
( 265 ) |
1.4 09 |
11. 220 |
- | - | 18. 206 |
( 794 ) |
- | 3.3 89 |
| Ca Fór la, S.A eta no mu |
21. 173 |
271 .30 2 |
( ) 13. 738 |
732 .15 5 |
- | - | ( 29) 7.7 |
( ) 20. 095 |
- | 6.1 17 |
| Ca Fór la C ádi S.L eta no mu z, |
374 | - | - | - | - | - | - | - | - | 374 |
| Áfr Ca Fór la E ica S.A eta ast no mu , |
- | - | 35 | - | - | - | - | - | - | 2.4 90 |
| Ca Fór la G alic ia, S.L .U. eta no mu |
- | - | - | - | - | - | - | - | - | 130 |
| Áfr Ca Fór la W ica S.A eta est no mu , |
143 | - | - | - | - | - | - | - | - | 270 |
| Ca Mo bilit S.A eta no y, |
57 | - | - | - | - | - | - | - | - | 46 |
| Ca S.A eta Mo tors no , |
101 .09 1 |
238 | ( 23. 419 ) |
- | - | - | ( 11. 454 ) |
32. 500 |
- | 3.6 48 |
| Ca Mo Cá diz S.L eta tors no , |
220 | - | - | - | - | - | - | - | - | 220 |
| Áfr Ca Mo ica S.A eta no ve , |
21 | - | - | - | - | - | - | - | - | 261 |
| Ca On e C V, Lda eta no |
21. 606 |
2.5 53 |
43. 975 |
40. 428 |
31. 939 |
- | 37. 322 |
2.1 91 |
- | 42. 066 |
| Ca Pa Ld eta rts, no a. |
57. 353 |
1.4 37. 752 |
1.6 45. 259 |
5.2 39. 857 |
- | - | 1.4 09 |
14. 329 |
- | 2.6 62 |
| Ca S.A Pow eta no er, |
37. 712 |
817 | ( 29. 460 ) |
70. 174 |
- | - | ( 10. 897 ) |
( 10. 035 ) |
- | 2.2 87 |
| Ca Re tail ( S.G .P.S .), S.A eta no |
168 .36 0 |
11. 007 |
763 | - | - | - | 76 | 18. 046 |
- | 304 .99 6 |
| Ca Re tail Es ña, S. A.U eta no pa |
124 .31 6 |
- | - | - | - | - | - | - | - | 126 .18 5 |
| Áfr Ca Sq uad ica S.A eta no ra , |
21 | - | - | - | - | - | - | - | - | 60 |
| 20 19 |
Co mm erc |
ial De bts |
Pro | duc ts |
Fix ed |
ets ass |
Se | rvic es |
Oth | ers |
|---|---|---|---|---|---|---|---|---|---|---|
| Co mp any |
Re cei vab le |
Pay abl e |
Sa les |
Pur cha ses |
Pur cha ses |
Re cei vab le |
Pay abl e |
Sa les |
Sa les |
Pur cha ses |
| Ca Sta S.A eta no r, |
24. 054 |
288 | 1.2 85 |
- | - | - | - | 617 | ( ) 795 |
19. 108 |
| Ca Tec hni k, Lda eta no |
6.8 64 |
12. 452 |
( 23. 533 ) |
25. 810 |
- | - | ( 13. 331 ) |
3.5 28 |
- | 1.7 95 |
| Ca noB - F abr ica ão de Ca aria S.A eta us ç rroç s, |
2.7 31. 487 |
308 .74 9 |
106 .39 0 |
66. 771 |
- | 150 | 153 .38 8 |
117 .91 2 |
3.7 93 |
2.4 50. 480 |
| Ca u P ubl icid ade S.A ets , |
42. 167 |
1.2 84. 895 |
80. 655 |
42. 572 |
- | - | 5.1 62 |
3.6 93. 514 |
- | 10. 621 |
| Ca lus Co mé rcio de Au óve is, S.A tom rp - |
49. 620 |
- | 45. 333 |
1.5 90 |
- | - | 64. 195 |
26. 200 |
- | 17. 138 |
| Ch e C S.A oic ar, |
5.2 37 |
- | - | - | - | - | - | 16. 014 |
- | 40. 684 |
| CO CIG A - Co ões Ci vis de Ga ia, S.A nst ruç |
11. 081 |
134 .10 4 |
- | - | 606 .08 2 |
- | 12. 172 |
112 .01 4 |
19. 440 |
12. 491 |
| CO VIM So c. A íco la, Silv íco la e Im obi liár ia, S.A gr - |
- | - | - | - | - | - | - | 2.0 00 |
- | - |
| Fin log Alu Co mé rcio de Au óve is, S.A tom gue r e - |
411 .04 0 |
214 .91 1 |
1.7 46. 234 |
1.2 77. 015 |
- | - | 411 .13 3 |
1.5 58. 072 |
79. 046 |
106 .37 6 |
| Sa Ca Fun daç ão lva dor eta no |
649 .62 5 |
- | - | - | - | - | - | - | - | 224 |
| Gru Sa Ca S.G .P.S S.A lva dor ( .), eta po no, |
- | - | - | - | - | - | - | 4.1 50 |
- | 34 |
| Gu érin Re -Ca r ( Do is), Ld nt-a a. - |
809 .77 1 |
3.0 26 |
137 .45 2 |
102 | - | - | 1.4 03. 601 |
7.6 41 |
- | 454 .56 6 |
| Gu erin Re nt A Ca S.L .U. r, |
2.4 32 |
- | - | - | - | - | - | - | - | 2.4 32 |
| Hyu nda i Po al, S.A rtug |
9.5 93 |
- | 5.2 80 |
- | - | - | 11. 803 |
- | - | 51. 416 |
| Lid So luc ion S. L. era es, |
4.2 62 |
2.4 28 |
- | - | - | - | - | 105 .27 6 |
- | 5.0 61 |
| Lus ilec Ve ícu los e E ipa S.A tra nto qu me s, - |
103 .74 5 |
178 .70 9 |
97. 924 |
23. 398 |
71. 245 |
- | 72. 986 |
473 .39 0 |
6.7 40 |
60. 661 |
| MD S A Me dia ão de Se S. A. uto ç gur os, - |
15. 741 |
- | 1.1 75 |
- | - | - | 903 .32 5 |
- | - | 2.4 98 |
| Mo vic Mo vim ão Ind rial Lda ent ust arg o - aç , |
2.6 61 |
362 .59 9 |
- | 875 .36 5 |
- | - | 6.7 49 |
905 .84 2 |
63. 082 |
15. 336 |
| P.O .A. L. - Pav ime e O bra s A sór ias S.A nta ões ç ces , |
17. 806 |
- | - | - | - | - | - | - | - | - |
| Co mé S.A Por tian rcio Int aci l e Pa rtic ipa ões ga ern ona ç - , |
354 .83 2 |
350 .07 7 |
408 .27 4 |
- | - | - | 43. 689 |
332 .74 5 |
- | 87. 931 |
| RA RC ON Arq uite Co ltad oria S.A ctu ra e nsu - , |
- | 59. 697 |
17. 943 |
- | 54. 087 |
- | - | 147 .75 6 |
- | 256 |
| Rig Co ltor ia e Ge stã S.A or - nsu o, |
112 .01 2 |
1.1 45. 460 |
118 | - | 32. 826 |
- | 187 .79 6 |
3.7 96. 431 |
22. 508 |
256 .87 2 |
| Ro ber t H uds LT D on, |
- | - | 834 | - | - | - | - | - | - | - |
| Áfr Sa Ca S.G .P.S S.A lva dor eta Au to ica ( .), no , |
39 | - | - | - | - | - | - | - | - | 91 |
| Sa Ca S.G .P.S S.A lva dor Au ( .), eta to, no |
21 | - | - | - | - | - | - | - | - | 94 |
| Sa lva dor Ca Eq uip S. A. eta ent no am os, |
10 | - | - | - | - | - | - | - | - | 9 |
| SIM OG A - So cie dad e Im obi liár ia d e G aia S.A , |
1.3 74 |
- | - | - | - | - | - | - | - | - |
| Só zó Po al, S.A rtug |
8.5 28 |
- | - | - | - | - | - | - | - | 22. 430 |
| Co Toy Mo rati ota tor rpo on |
3.5 01. 528 |
15. 848 .49 0 |
45. 547 .69 0 |
220 .10 2.7 73 |
30. 000 |
- | - | 535 .17 4 |
667 .36 1 |
4.1 44. 481 |
| Toy Mo Eu NV /SA ota tor rop e, |
369 | - | - | - | - | - | - | - | - | 3.6 00 |
| Tu risp aiv Soc ied ade Tu ríst ica Pa ive S.A a - nse , |
369 | - | - | - | - | - | - | - | - | 3.6 00 |
| Áfr VA S ica ( S.G .P.S .), S.A |
21 | - | - | - | - | - | - | - | - | 34 |
| Va s C abo Ve rde So cie dad e U nip oal S.A ess , , |
8.3 80 |
3.1 52 |
104 .68 8 |
11. 297 .19 9 |
4.2 32. 200 |
86. 743 |
403 .74 7 |
1.4 62. 124 |
102 .07 3 |
283 .48 8 |
| 11. 070 .99 5 |
26. 386 .32 7 |
53. 768 .73 8 |
283 .67 6.9 53 |
5.0 58. 379 |
246 .65 0 |
3.7 84. 617 |
14. 501 .64 9 |
1.5 79. 476 |
9.6 48. 281 |
68
| 201 8 |
Co mm erc |
ial De bts |
Pro duc |
ts | Fix ed |
ets ass |
Se rvic |
es | Oth | ers |
|---|---|---|---|---|---|---|---|---|---|---|
| Co mp any |
Re cei vab le |
Pay abl e |
Sa les |
Pur cha ses |
Pur cha ses |
Re cei vab le |
Pay abl e |
Sa les |
Sa les |
Pur cha ses |
| Am orim Br ito & S ard inh Lda a, |
167 | - | - | - | - | - | - | - | - | 2.8 05 |
| Atlâ ntic Co anh ia P de Pes S. A. ortu a - mp gue sa ca, |
5.1 73 |
- | - | - | - | - | - | - | - | 17 |
| ária S.A Au to P Imo bili artn er , |
1.5 95 |
17. 749 |
- | - | - | - | - | 61. 199 |
- | 17 |
| Ca bo Ve rde Re -Ca Lda nt-a r, |
103 .35 3 |
9.1 33 |
- | - | - | - | 140 .61 3 |
185 .09 5 |
- | - |
| Ca Act ive S.A eta no , |
1.0 08 |
430 | 396 | - | - | - | 11. 465 |
1.3 69 |
- | 27 |
| Ca Ae ic, S.A eta aut no ron |
56. 112 |
8.6 59 |
548 | - | - | - | 28. 496 |
310 .22 6 |
311 .82 9 |
449 .94 9 |
| Ca Bav iera Co mé rcio de Au óve is, S.A eta tom no - |
328 .81 6 |
133 .50 8 |
3.4 59. 002 |
504 .54 5 |
- | - | 39. 455 |
285 .82 7 |
608 .58 1 |
247 .56 9 |
| Ca Cit Ac tive ( No rte) S.A eta no y e , |
338 .49 7 |
91. 763 |
3.4 96. 594 |
8.0 51 |
- | 131 .34 8 |
461 | 103 .89 9 |
279 .24 4 |
( 45. 452 ) |
| Ca Driv Sp e U rba S.A eta ort no e, n, |
60. 204 |
83. 916 |
( 37. 702 ) |
11. 830 |
- | - | 117 .77 2 |
327 .30 3 |
- | ( 528 ) |
| Ca Ene S.A eta no rgy , |
55. 784 |
14. 251 |
11. 228 |
24. 002 |
- | - | 50. 267 |
14. 122 |
- | 6.6 92 |
| Ca Fór la, S.A eta no mu |
2.6 67 |
185 .58 9 |
( ) 17. 820 |
846 .45 4 |
- | - | 25. 303 |
( ) 18. 659 |
- | 1.2 04 |
| Áfr Ca S.A eta For la E ast ica no mu , |
2.0 42 |
- | - | - | - | - | - | - | - | 3.7 38 |
| Áfr Ca Fór la W ica S.A eta est no mu , |
330 | - | - | - | - | - | - | - | - | 297 |
| Ca Mo S.A eta tors no , |
128 .96 7 |
76 | ( 20. 155 ) |
842 | - | - | 36. 457 |
21. 911 |
- | 1.7 23 |
| Áfr Ca Mo ica S.A eta no ve , |
84 | - | 1.0 99 |
- | - | - | - | - | - | 95 |
| Ca On e C eta V, Lda no |
116 .63 2 |
3.2 69 |
- | - | - | - | 29. 372 |
1.0 15 |
- | - |
| Ca Pa Ld eta rts, no a. |
123 .04 2 |
1.4 08. 346 |
1.8 33. 129 |
5.5 72. 139 |
- | - | 1.9 77 |
16. 227 |
2.2 41 |
1.3 18 |
| Ca Pow S.A eta no er, |
66. 068 |
30. 533 |
( 33. 470 ) |
698 | - | - | 73. 969 |
2.1 52 |
( 106 .60 5) |
( 513 ) |
| Ca Re tail ( S.G .P.S .), S.A eta no |
233 .61 2 |
18. 648 |
1.0 44 |
- | - | - | 1.8 95 |
13. 327 |
- | 328 .86 1 |
| Ca Re tail Es S. A.U eta ña, no pa |
- | - | - | - | - | - | - | - | - | 5.6 35 |
| Áfr Ca Sq S.A uad ica eta no ra , |
383 | - | - | - | - | - | - | - | - | 379 |
| Ca Sta S.A eta no r, |
21. 540 |
1.6 46 |
4.1 07 |
874 | - | - | - | 2.3 94 |
1.0 34 |
28. 620 |
| Ca Tec hni k, Lda eta no |
10. 148 |
24. 652 |
1.8 34 |
49. 227 |
- | - | 21. 823 |
1.4 87 |
- | 3.2 35 |
| Ca noB Fab rica ão de Ca aria S.A eta us ç rroç s, - |
4.2 08. 338 |
187 .53 8 |
90. 852 |
67. 876 |
9.0 00 |
4.9 30 |
117 .44 8 |
212 .78 1 |
252 .04 6 |
2.5 26. 924 |
| Ca u P ubl icid ade S.A ets , |
5.7 68 |
682 .19 7 |
60. 059 |
- | - | - | 4.8 82 |
3.4 67. 986 |
3.2 55. 334 |
6.8 33 |
| Ca - C érc mó S.A lus io d e A uto vei rp om s, |
12. 481 |
2.0 93 |
40. 442 |
35. 732 |
- | - | 86. 001 |
176 | 450 | 15. 916 |
| Ch oic e C S.A ar, |
3.4 51 |
758 | - | - | - | - | - | 19. 573 |
19. 631 |
18. 303 |
| CO CIG A - Co ões Ci vis de Ga ia, S.A nst ruç |
5.7 27 |
433 .08 1 |
- | - | 185 .46 7 |
- | 9.3 02 |
227 .47 6 |
227 .47 6 |
11. 152 |
| CO VIM So c. A íco la, Silv íco la e Im obi liár ia, S.A gr - |
- | - | - | - | - | - | - | 2.0 00 |
2.0 00 |
- |
| Co mé óve S.A Fin log Alu rcio de Au tom is, gue r e - |
395 .82 8 |
336 .40 9 |
1.4 80. 563 |
377 .73 9 |
- | - | 419 .13 5 |
1.2 97. 800 |
538 .61 1 |
58. 813 |
| Sa Ca Fun daç ão lva dor eta no |
617 .68 6 |
- | - | - | - | - | - | - | - | 21 |
| Gru Sa lva dor Ca ( S.G .P.S .), S.A eta po no, |
- | - | - | - | - | - | - | - | - | 85 |
| Gu érin Re -Ca r ( Do is), Ld nt-a a. - |
498 .15 5 |
116 .19 3 |
156 .49 1 |
148 .22 8 |
- | - | 1.5 50. 920 |
13. 668 |
10. 159 |
178 .26 2 |
| 201 8 |
Co mm erc |
ial De bts |
Pro duc |
ts | Fix ed |
ets ass |
Se rvic |
es | Oth | ers |
|---|---|---|---|---|---|---|---|---|---|---|
| Co mp any |
Re cei vab le |
Pay abl e |
Sa les |
Pur cha ses |
Pur cha ses |
Co mp any |
Re cei vab le |
Pay abl e |
Sa les |
Pur cha ses |
| Hyu nda i Po al, S.A rtug |
9.3 15 |
- | 8.2 56 |
35 | - | - | 39. 735 |
- | - | 46. 267 |
| Ibe rica r M rs C ádi S.L oto z, |
- | - | - | - | - | - | - | - | - | 385 |
| Ibe rica r R eic S. A. om sa, |
- | - | - | - | - | - | - | - | - | 752 |
| Lid So luc ion S. L. era es, |
- | 70. 016 |
- | - | - | - | - | 191 .38 8 |
71. 924 |
- |
| Lus ilec Ve ícu los e E ipa S.A tra nto qu me s, - |
31. 522 |
169 .40 9 |
48. 002 |
66. 455 |
5.2 53 |
- | 68. 839 |
429 .32 9 |
155 .92 0 |
60. 308 |
| MD S A Me dia ão de Se S. A. uto ç gur os, - |
2.3 12 |
- | 132 | - | - | - | 106 | - | - | 6.0 17 |
| Mo vic Mo vim ão Ind rial Lda ent ust arg o - aç , |
3.7 37 |
551 .86 9 |
290 | 890 .75 9 |
- | - | 8.0 09 |
866 .33 4 |
659 .34 8 |
6.0 82 |
| P.O e O sór S.A .A. L. - Pav ime nta ões bra s A ias ç ces , |
17. 806 |
- | - | - | - | - | - | - | - | - |
| Por tian Co mé rcio Int aci l e Pa rtic ipa ões S.A ga ern ona ç - , |
125 .13 3 |
332 .52 0 |
150 .18 2 |
648 | - | - | 49. 368 |
310 .15 2 |
251 .66 5 |
75. 838 |
| RA RC ON Arq uite Co ltad oria S.A ctu ra e nsu - , |
- | 39. 655 |
- | - | 6.3 40 |
- | - | 94. 742 |
94. 742 |
- |
| Rig Co ltor ia e Ge stã S.A or - nsu o, |
44. 794 |
1.3 86. 682 |
1.0 20 |
- | 26. 857 |
- | 168 .48 3 |
3.9 60. 998 |
2.4 15. 788 |
252 .71 7 |
| Ro ber t H uds LT D on, |
1.1 61 |
- | 2.9 94 |
- | - | - | - | - | - | 1.4 74 |
| Áfr Sa Ca S.G .P.S S.A lva dor Au ica ( .), eta to no , |
63 | - | - | - | - | - | - | - | - | 145 |
| Sa lva dor Ca Au ( S.G .P.S .), S.A eta to, no |
48 | - | - | - | - | - | - | - | - | 124 |
| Sa lva dor Ca Ca ital ( S.G .P.S .), S.A eta no p , |
31 | - | - | - | - | - | - | - | - | 26 |
| Sa lva dor Ca Eq uip S. A. eta ent no am os, |
- | - | - | - | - | - | - | - | - | 9 |
| SIM OG A - So cie dad e Im obi liár ia d e G aia S.A , |
1.3 74 |
- | - | - | - | - | - | - | - | - |
| Só zó Po al, S.A rtug |
1.9 02 |
- | - | - | - | - | - | - | - | 13. 437 |
| Toy ota Mo tor Co rat ion rpo |
21. 360 |
4.0 21. 475 |
- | 39. 649 .93 5 |
- | - | - | 71. 049 |
429 .12 5 |
137 .14 1 |
| V/S Toy ota Mo tor Eu e, N A rop |
4.4 82. 577 |
8.1 37. 237 |
45. 926 .49 4 |
22. 831 .35 1 |
- | - | - | 490 .76 2 |
( 4.9 67. 015 ) |
4.3 79. 273 |
| Tu risp aiv Soc ied ade Tu ríst ica Pa ive S.A a - nse , |
138 | - | - | - | - | - | - | - | - | 1.4 48 |
| Áfr S S.G .P.S S.A ica ( .), |
105 | - | - | - | - | - | - | - | - | 85 |
| Va s C abo Ve rde So cie dad e U nip oal S.A ess , , |
250 .08 4 |
1.7 47 |
44. 625 |
- | - | - | 78. 097 |
5.3 56 |
- | 117 .54 0 |
| 12. 397 .12 0 |
28. 501 .04 7 |
56. 710 .23 6 |
271 .08 7.4 20 |
232 .91 7 |
136 .27 8 |
3.1 79. 650 |
12. 990 .46 4 |
4.5 13. 528 |
8.9 51. 065 |
Goods and services purchased and sales to related parties were made at market prices.
(Amounts in Euros)
Financial commitments assumed and not included in Consolidated Statement of Financial Position:
As of December 31, 2019 and 2018, Toyota Caetano Group had assumed the following financial commitments:
| Commitments | Dec-19 | Dec-18 |
|---|---|---|
| Guarantees of Imports | 4.000.000 | 4.000.000 |
| Other financial guarantees | 1.914.401 | 253.063 |
| 5.914.401 | 4.253.063 | |
At December 31, 2019 and 2018, the financial commitments classified as "Guarantees for Imports" the amount of 4 million Euros is related with guarantees on imports provided to Customs Agency.
The caption "Other debtors" includes, on December 31, 2019 and 2018, the amount of approximately 800,000 Euros receivable from related company Salvador Caetano Auto África, S.G.P.S., S.A..
Following the 14 million Euros debt contracting, the Group has granted mortgages to the respective financial institutions, valued at about 23,4 million Euros, at the financing date.
Taxes Liquidation:
Toyota Caetano Portugal, S.A. Litigations in progress
Claim against agency contract termination
The judicial claim presented by a former agent, who was pendent of appeal at the Supreme Court of Justice, was concluded. As conviction of the Board of Directors, no responsibilities were result by the Group.
Judicial claim against collective dismissal
The judicial claim against collective dismissal was completed in 2016 with the existence of agreements.
The Board of Director and its legal advisors believe that the collective dismissal process occurred in 2012, is based on strong market, structural and technological reasons. It is conviction of the board that no responsibilities will arise for the Group from the end of this process.
(Amounts in Euros)
In September 2000, the European Commission approved a Directive regarding end-of-life vehicles and the responsibility of Producers/Distributors for dismantling and recycling them.
Producers/Distributors will have to support at least a significant part of the cost of the dismantling of vehicles that went to the market after July 1, 2002, as well as in relation to vehicles produced before this date, but presented as of January 1, 2007.
This legislation will impact Toyota vehicles sold in Portugal. Toyota Caetano and Toyota are closely monitoring the development of Portuguese National Legislation in order to access the impact of these operations in its financial statements.
It is our conviction, in accordance with studies performed on the Portuguese market, and taking in consideration the possible usage of the vehicles parts resulting from the dismantlement, that the effective impact of this legislation in the Group accounts will be reduced or nil.
Meanwhile, and according to the legislation in force (Dec./Law 196/2003), the Group signed a contract with "ValorCar – Sociedade de Gestão de Veículos em Fim de Vida, Lda" - a licensed entity for the management of an integrated system of ELV- the transfer of the liabilities in this process.
The Group adopts the necessary measures relating to the environment, aiming to fulfil current applicable legislation.
The Toyota Caetano Group Board of Directors does not estimate that there are risks related to the environmental protection and improvement, not having received any infraction related to this matter during 2019.
The remuneration of the board members during the years 2019 and 2018, was as follows:
| Board Members | Dec-19 | Dec-18 |
|---|---|---|
| Board of Directors Fixed remunerations |
714.825 | 582.204 |
(Amounts in Euros)
The remuneration of the Statutory Auditor, PricewatherhouseCoopers & Associados – S.R.O.C., Lda. for December 31, 2019 and 2018, was as follows:
| Dec-19 | Dec-18 | |
|---|---|---|
| Total fees related to statutory audit | 50.000 | 55.000 |
| Total fees related to account review | 3.000 | 3.000 |
| Total fees related to assurance services | 1.000 | 1.000 |
| 54.000 | 59.000 | |
Since the end of the semester to the present date, Salvador Caetano -Auto- S.G.P.S., S.A. acquired 839.813 shares of par value of 1 Euro each, fully realized and representative.
On August 8, 2019, Salvador Caetano -Auto- SGPS, SA, as a shareholder of Toyota Caetano Portugal, proposed to deliberate, under the terms and for the purposes of paragraph b) of number 1 of article 27 of the Code Securities, on the loss, by Toyota Caetano Portugal SA, of the status of the Public company status.
Since the end of 2019, we could not disclose this attachment without clarifying that it was prepared before the declaration by the WHO of the State of Pandemic.
Aware of the economic and financial reflexes that will be experienced in Portugal from March 2020, which will have inherently negative effects on the activity / profitability of the Company during economic exercise 2020 and not being possible at this moment to quantify it, it is important to mention that are available unused bank credit lines of over 50 M€, thus ensuring, in our view, the continuity of operations for at least a 12-month period.
The consolidated financial statements were approved by the Board of Directors on March 17, 2020.
According to the Portuguese Commercial Companies Code, it is possible the amended for these Financial Statements, after approval by the Board of Directors.
(Amounts in Euros)
These financial statements are a translation of financial statements originally issued in Portuguese language in accordance with IFRS. In the event of discrepancies, the Portuguese language version prevails.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS
ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS - Chairman MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
Public Limited Company Registered Office: Av. Vasco da Gama - Oliveira do Douro - Vila Nova de Gaia Share Capital: 35.000.000 Euros Solo Tax and Registry Number at the Commercial Registry Office of Vila Nova de Gaia 500 239 037
Dear Shareholders:
In accordance with the terms of item g) of article 420.º of the "Código das Sociedades Comerciais" and the Articles of Association, it is our duty submit to your appreciation the report concerning the activity performed and to issue opinion regarding the documents and statements of the individual and consolidated accounts of TOYOTA CAETANO PORTUGAL, SA, referring to the financial year of 2019, which were presented to us by the Board of Directors.
In accordance with the assignments conferred to us, during this exercise we proceeded to the follow-up of the social business and to its evolution and, with the frequency and extent considered advisable and appropriate, to the general analysis of the financial procedures, accounting policies and measurement criteria adopted by the company.
We had analysed and approved the provision of additional services by PricewaterhouseCoopers & Associados - SROC, Lda. for the year 2019.
We have no knowledge of any situation which didn't respect the articles of association and the legal terms applicable.
We analysed the Individual Legal Certification of Accounts and the Consolidated Legal Certification of Accounts issued by the Statutory External Auditor, with which we agree.
Thus,
Public Limited Company Registered Office: Av. Vasco da Gama - Oliveira do Douro - Vila Nova de Gaia Share Capital: 35.000.000 Euros Solo Tax and Registry Number at the Commercial Registry Office of Vila Nova de Gaia 500 239 037
its perimeter of consolidation, evidencing as well a description of the mains risks and incertitude's to be faced.
And, under the terms of number 5 of article 420.º of "Código das Sociedades Comerciais", the Fiscal Council of TOYOTA CAETANO PORTUGAL, S.A. states that the report on the structure and practices of corporate governance includes the elements referred in article 245.º-A of "Código dos Valores Mobiliários.
Accordingly, we are of the opinion that the Annual General Meeting:
a) Approve the management report of the Board of Directors and the individual and consolidated Accounts related to the financial year ended on the December 31st, 2019;
b) Approve the proposal for the net result application, contained in the management report of the Board of Directors.
Vila Nova de Gaia, 18th March 2020
Public Limited Company Registered Office: Av. Vasco da Gama - Oliveira do Douro - Vila Nova de Gaia Share Capital: 35.000.000 Euros Solo Tax and Registry Number at the Commercial Registry Office of Vila Nova de Gaia 500 239 037
All members of the Fiscal Council of TOYOTA CAETANO PORTUGAL, S.A., under the terms of item c) of number 1 of article 245.º of the "Código de Valores Mobiliários", hereby declare that, as far as it is their knowledge, the information provided in item a) of the above referred article, including documents of individual and consolidated accounts, was elaborated according to the accounting rules applicable, evidencing a correct and clear image of the assets and liabilities, of the financial situation and results of TOYOTA CAETANO PORTUGAL, SA and that the management report clearly shows the business evolution, the performance and the position of the Company and companies included in its perimeter of consolidation, evidencing as well a description of the mains risks and incertitude's to be faced.
Vila Nova de Gaia, 18th March 2020
We have audited the accompanying financial statements of Toyota Caetano Portugal, S.A. (the Entity), which comprise the statement of financial position as at 31 December 2019 (which shows total assets of Euro 254.780.574 and total shareholders' equity of Euro 141.324.356 including a net profit of Euro 11.593.984), the statement of income by nature, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and the notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly in all material respects, the financial position of Toyota Caetano Portugal, S.A. as at 31 December 2019, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union.
We conducted our audit in accordance with International Standards on Auditing (ISAs) and other technical and ethical standards and recommendations issued by the Institute of Statutory Auditors. Our responsibilities under those standards are described in the "Auditor's responsibilities for the audit of the financial statements" section below. In accordance with the law we are independent of the Entity and we have fulfilled our other ethical responsibilities in accordance with the ethics code of the Institute of Statutory Auditors.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
As mentioned in note 35 of the Annex, we emphasize that the Covid-19 pandemic, whose effects will be felt in Portugal from March 2020, will have negative impact on the activity and profitability of the Company during 2020, although it is not possible at this time to quantify those impacts.
Our opinion is not modified in respect of this matter.
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. o′Porto Bessa Leite Complex, Rua António Bessa Leite, 1430 - 5º, 4150-074 Porto, Portugal Tel +351 225 433 000 Fax +351 225 433 499, www.pwc.pt Matriculada na CRC sob o NUPC 506 628 752, Capital Social Euros 314.000 Inscrita na lista das Sociedades de Revisores Oficiais de Contas sob o nº 183 e na CMVM sob o nº 20161485
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. pertence à rede de entidades que são membros da PricewaterhouseCoopers International Limited, cada uma das quais é uma entidade legal autónoma e independente. Sede: Palácio Sottomayor, Rua Sousa Martins, 1 - 3º, 1069-316 Lisboa, Portugal
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
| Key audit matter | Summary of the audit approched |
|---|---|
| Revenue cut-off | |
| Disclosures related with revenue presented in the notes to the financial statements 2.3.n) and 23. |
In order to mitigate the risk of a cut-off error concerning revenue recognition arising from sales of goods, we have performed the following audit procedures: |
| The Company's revenue amounts to Euro 362 | - |
| million This amount includes Euro 33 million | Identification and test of key controls related |
| referent to sales occurred in December. | with revenues and receivables processes; |
| According to IFRS 15, revenue is recognized in | - |
| the income statement when the control is | Inventory counting assistance and analysis of |
| transferred from the seller to the buyer, and this | adjustments made to inventory; |
| recognition may be effected at one time if the | - |
| transfer of control takes place on a specific date | Tests of detail to the cut-off assertion |
| or over time if that transfer takes place over a | through the verification of delivery notes; |
The automatic recognition of revenue is made at the moment of billing issuance. In a moment after that, a manual adjustment is made to the sales related with cars that, at the reporting date, were not delivered to the clients.
This issue is a key audit matter because there is a gap between the billing moment and the moment of the transfer of control to the client, and also because the mentioned adjustment results from a manual procedure.
certain period of time.
Disclosures related with inventory presented in the notes to the financial statements 2.3.e) and 11.
adjustments; - Analytical procedures to the caption sales
(variance analysis against last year and budget);
In order to mitigate the risk of the carrying amount of used cars inventory being greater that their net realizable value, we have performed the
| Key audit matter | Summary of the audit approched | ||||
|---|---|---|---|---|---|
| The Company presents in the statement of financial position, inventory amounting to Euro |
following audit procedures: | ||||
| 75 million, representing about 30% of total assets. The mentioned amount includes Euro 65 million related with merchandise, which are |
- Test of detail to the valuation of used cars inventory as of December 31, 2019 |
||||
| measured at the lower of average acquisition cost and net realizable value. |
- Validation and recalculation of the assumptions made by the Management of the |
||||
| The amount of merchandise contains Euro 17 | Company. | ||||
| million referent to used cars, being the respective cumulative impairment losses of Euro 562 thousand. |
- Analytical review to margins of used cars as well as to inventory turnover related with used cars. |
||||
| According to IAS 2, merchandise and raw and subsidiary materials are measured at the lower over the average cost and the net realisable value. The inventory cumulative impairment losses reflect the difference between the acquisition cost and the net realizable value. |
- Analysis of used cars' sales occurred after December 31, 2019 in order to identify situations in that the net realizable amount is lower than the carrying amount as of December 31, 2019. |
||||
| This issue is a key audit matter because of the volatility of the amount of used cars in inventory as well as the judgement inherent to assessment of impairment losses. There is the risk of the amount recognized of cumulative impairment losses not totally reflect the effective loss of value and the difference between both amounts be material. |
|||||
Management is responsible for:
a) the preparation of the financial statements, which present fairly the financial position, the financial performance and the cash flows of the Entity in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union;
b) the preparation of the Directors' Report, including the Corporate governance Report, in accordance with the applicable law and regulations;
c) the creation and maintenance of an appropriate system of internal control to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error;
d) the adoption of appropriate accounting policies and criteria;
e) the assessment of the Entity's ability to continue as a going concern, disclosing, as applicable, events or conditions that may cast significant doubt on the Entity's ability to continue its activities.
The supervisory board is responsible for overseeing the process of preparation and disclosure of the Entity's financial information.
Our responsibility is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
a) identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
b) obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control;
c) evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
d) conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Entity to cease to continue as a going concern;
e) evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation;
f) communicate with those charged with governance, including the supervisory board, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit;
g) of the matters we have communicated to those charged with governance, including the supervisory board, we determine which one's were the most important in the audit of the financial statements of the current year, these being the key audit matters. We describe these matters in our report, except when the law or regulation prohibits their public disclosure; and
h) confirm to the supervisory board that we comply with the relevant ethical requirements regarding independence and communicate all relationships and other matters that may be perceived as threats to our independence and, where applicable, the respective safeguards.
Our responsibility also includes verifying that the information included in the Directors' report is consistent with the financial statements and the verification set forth in paragraphs 4 and 5 of article No. 451 of the Portuguese Company Law, and verifying that the non-financial information was presented.
In compliance with paragraph 3 e) of article No. 451 of the Portuguese Company Law, it is our understanding that the Director's report has been prepared in accordance with applicable requirements of the law and regulation, that the information included in the Directors' report is consistent with the audited financial statements and, taking into account the knowledge and assessment about the Entity, no material misstatements were identified. As set forth in paragraph 7 of article No. 451 of the Portuguese Company Law, this opinion is not applicable to the non-financial statement included in the Director's report.
In compliance with paragraph 6 of article No. 451 of the Portuguese Company Law, we hereby inform that the entity included in its Director's report the non-financial statement set forth in article No. 66-B of the Portuguese Company Law.
In compliance with paragraph 4 of article No. 451 of the Portuguese Company Law, it is our understanding that the Corporate governance report includes the information required under article No. 245-A of the Portuguese Securities Market Code, that no material misstatements were identified in the information disclosed in this report and that it complies with paragraphs c), d), f), h), i) and m) of that article.
In accordance with article No. 10 of Regulation (EU) 537/2014 of the European Parliament and of the Council, of April 16, 2014, and in addition to the key audit matters referred to above, we also provide the following information:
a) We were first appointed auditors of the Entity in the Shareholders' General Meeting of 23 April 2010 having remained in functions until the current period. Our last appointment was in the Shareholders' General Meeting of 12 April 2019 for the period from 2019 to 2022.
b) The management has confirmed to us it has no knowledge of any allegation of fraud or suspicions of fraud with material effect in the financial statements. We have maintained professional scepticism throughout the audit and determined overall responses to address the risk of material misstatement due to fraud in the financial statements. Based on the work performed, we have not identified any material misstatement in the financial statements due to fraud.
c) We confirm that our audit opinion is consistent with the additional report that was prepared by us and issued to the Entity's supervisory board as of 17 March 2020.
d) We declare that we did not provide any prohibited non-audit services referred to in paragraph 8 of article No. 77 of the by-laws of the Institute of Statutory Auditors ("Estatutos da Ordem dos Revisores Oficiais de Contas") and that we remain independent of the Entity in conducting our audit.
18 March 2020
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. represented by:
José Miguel Dantas Maio Marques, R.O.C.
We have audited the accompanying consolidated financial statements of Toyota Caetano Portugal, S.A. (the Group), which comprise the consolidated statement of financial position as at 31 December 2019 (which shows total assets of Euros 310.499.214 and total shareholders' equity of Euros 142.838.583 including a net profit of Euros 11.593.984), the consolidated statement of income by nature, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly in all material respects, the consolidated financial position of Toyota Caetano Portugal, S.A. as at 31 December 2019, and their consolidated financial performance and their consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union.
We conducted our audit in accordance with International Standards on Auditing (ISAs) and other technical and ethical standards and recommendations issued by the Institute of Statutory Auditors. Our responsibilities under those standards are described in the "Auditor's responsibilities for the audit of the consolidated financial statements" section below. In accordance with the law we are independent of the entities that are included in the Group and we have fulfilled our other ethical responsibilities in accordance with the ethics code of the Institute of Statutory Auditors.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
As mentioned in note 39 of the Annex, we emphasize that the Covid-19 pandemic, whose effects will be felt in Portugal from March 2020, will have negative impact on the activity and profitability of the Company during 2020, although it is not possible at this time to quantify those impacts.
Our opinion is not modified in respect of this matter.
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. o′Porto Bessa Leite Complex, Rua António Bessa Leite, 1430 - 5º, 4150-074 Porto, Portugal Tel +351 225 433 000 Fax +351 225 433 499, www.pwc.pt Matriculada na CRC sob o NUPC 506 628 752, Capital Social Euros 314.000 Inscrita na lista das Sociedades de Revisores Oficiais de Contas sob o nº 183 e na CMVM sob o nº 20161485
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. pertence à rede de entidades que são membros da PricewaterhouseCoopers International Limited, cada uma das quais é uma entidade legal autónoma e independente. Sede: Palácio Sottomayor, Rua Sousa Martins, 1 - 3º, 1069-316 Lisboa, Portugal
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.
| Key Audit Matter | Summary of the Audit Approach | ||||
|---|---|---|---|---|---|
| Revenue cut-off | |||||
| Disclosures related with revenue presented in the notes to the consolidated financial statements 2.3.p) and 28. |
In order to mitigate the risk of a cut-off error concerning revenue recognition arising from sales of goods, we have performed the following audit |
||||
| The Group's revenue amounts to Euro 465 | procedures: | ||||
| million. This amount includes Euro 52 million referent to sales occurred in December. |
- Identification and test of key controls related with revenues and receivables processes; |
||||
| According to IFRS 15, revenue is recognized in the income statement when the control is transferred from the seller to the buyer, and this recognition |
- Inventory counting assistance and analysis of adjustments made to inventory; |
||||
| may be effected at one time if the transfer of control takes place on a specific date or over time if that transfer takes place over a certain period of |
- Tests of detail to the cut-off assertion through the verification of delivery notes; |
||||
| time. | - Tests of detail to revenue manual adjustments; | ||||
| The automatic recognition of revenue is made at the moment of billing issuance. In a moment after that, a manual adjustment is made to the sales |
- Analytical procedures to the caption sales (variance analysis against last year and budget) |
||||
| related with cars that, at the reporting date, were not delivered to the clients. |
- Verification of disclosures | ||||
| This issue is a key audit matter because there is a gap between the billing moment and the moment of the transfer of control to the client, and also because the mentioned adjustment results from a manual procedure. |
|||||
| Used cars valuation | |||||
| Disclosures related with inventory presented in the notes to the consolidated financial statements 2.3.e) and 10. |
In order to mitigate the risk of the carrying amount of used cars inventory being greater that their net realizable value, we have performed the |
||||
| The Group presents in the consolidated statement | following audit procedures: |
| Key Audit Matter | Summary of the Audit Approach |
|---|---|
| of financial position, inventory amounting to Euro 105 million representing about 34% of total assets. The mentioned amount includes Euro 97 |
- Test of detail to the valuation of used cars inventory as of December 31, 2019 |
| million related with merchandise, which are measured at the lower of average acquisition cost and net realizable value. |
- Validation and recalculation of the assumptions made by the Management of the Company. |
| The amount of merchandise contains Euro 43.8 million referent to used cars, being the respective cumulative impairment losses of Euro 2.5 million. |
- Analytical review to margins of used cars as well as to inventory turnover related with used cars. |
| According to IAS 2, merchandise and raw and subsidiary materials are measured at the lower over the average cost and the net realisable value. The inventory cumulative impairment losses reflect the difference between the acquisition cost and the net realizable value. |
- Analysis of used cars' sales occurred after December 31, 2019 in order to identify situations in that the net realizable amount is lower than the carrying amount as of December 31, 2019. |
| This issue is a key audit matter because of the volatility of the amount of used cars in inventory as well as the judgement inherent to assessment of impairment losses. There is the risk of the amount recognized of cumulative impairment losses not totally reflect the effective loss of value and the difference between both amounts be material. |
|
Management is responsible for:
a) the preparation of the consolidated financial statements, which present fairly the financial position, the financial performance and the cash flows of the Group in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union;
b) the preparation of the Directors' Report, including the Corporate governance Report, in accordance with the applicable law and regulations;
c) the creation and maintenance of an appropriate system of internal control to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error;
d) the adoption of appropriate accounting policies and criteria; and
e) the assessment of the Group's ability to continue as a going concern, disclosing, as applicable, events or conditions that may cast significant doubt on the Group's ability to continue its activities.
The supervisory board is responsible for overseeing the process of preparation and disclosure of the Group's financial information.
Our responsibility is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
a) identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
b) obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control;
c) evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
d) conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern;
e) evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation;
f) obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion;
g) communicate with those charged with governance, including the supervisory board, regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit;
h) of the matters we have communicated to those charged with governance, including the supervisory board, we determine which one's were the most important in the audit of the consolidated financial statements of the current year, these being the key audit matters. We describe these matters in our report, except when the law or regulation prohibits their public disclosure; and
i) confirm to the supervisory board that we comply with the relevant ethical requirements regarding independence and communicate all relationships and other matters that may be perceived as threats to our independence and, where applicable, the respective safeguards.
Our responsibility also includes verifying that the information included in the Directors' report is consistent with the consolidated financial statements [and the verification set forth in paragraphs 4 and 5 of article No. 451 of the Portuguese Company Law, and verifying that the non-financial information was presented.
In compliance with paragraph 3 e) of article No. 451 of the Portuguese Company Law, it is our understanding that the Director's report has been prepared in accordance with applicable requirements of the law and regulation, that the information included in the Directors' report is consistent with the audited consolidated financial statements and, taking into account the knowledge and assessment about the Group, no material misstatements were identified. As set forth in paragraph 7 of article No. 451 of the Portuguese Company Law, this opinion is not applicable to the non-financial statement included in the Director's report.
In compliance with paragraph 6 of article No. 451 of the Portuguese Company Law, we hereby inform that the entity included in its Director's report the non-financial statement set forth in article No. 508- G of the Portuguese Company Law.
In compliance with paragraph 4 of article No. 451 of the Portuguese Company Law, it is our understanding that the Corporate governance report includes the information required under article No. 245-A of the Portuguese Securities Market Code, that no material misstatements were identified in the information disclosed in this report and that it complies with paragraphs c), d), f), h), i) and m) of that article.
In accordance with article No. 10 of Regulation (EU) 537/2014 of the European Parliament and of the Council, of April 16, 2014, and in addition to the key audit matters referred to above, we also provide the following information:
a) We were first appointed auditors of Toyota Caetano Portugal, S.A. in the Shareholders' General Meeting of 23 April 2010 having remained in functions until the current period. Our last appointment was in the Shareholders' General Meeting of 12 April 2019 for the period from 2019 to 2022.
b) The management has confirmed to us it has no knowledge of any allegation of fraud or suspicions of fraud with material effect in the financial statements. We have maintained professional scepticism throughout the audit and determined overall responses to address the risk of material misstatement due to fraud in the consolidated financial statements. Based on the work performed, we have not identified any material misstatement in the consolidated financial statements due to fraud.
c) We confirm that our audit opinion is consistent with the additional report that was prepared by us and issued to the Group's supervisory board as of 17 March 2020.
d) We declare that we did not provide any prohibited non-audit services referred to in paragraph 8 of article No. 77 of the by-laws of the Institute of Statutory Auditors ("Estatutos da Ordem dos Revisores Oficiais de Contas") and that we remain independent of the Group in conducting our audit.
18 March 2020
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. represented by:
José Miguel Dantas Maio Marques, R.O.C.
The Remuneration Committee of Toyota Caetano Portugal, S.A states the following:
Analyzed all accounting data and other records of Toyota Caetano Portugal, this Committee verified that the changes occurred in the remuneration of the Governing Bodies during the year 2019 complied with the proposals of this Committee approved in the General Meeting of Shareholders of April 12, 2019.
In view of the current economic climate and given the forecasts of activity and results for the financial year 2020, provided by the Management of the Company, it is the understanding of this Committee that the amounts of remuneration of the fixed nature for all members of the governing bodies, who maintain executive functions, must respect in its essence the deliberations of the Management concerning the salary policy to be applied to the remaining Employees, in other words, they must in 2020 be updated in a range between 1,4% to 3%.
For the non-Executive, this Committee has the opinion that they shall not receive any remuneration, as it is the practice hitherto followed.
Regarding the Variable Remuneration of the executive members of the Board of Directors, it has been allocated according to the results obtained by the Company, combining with the distribution policy of dividends to the shareholders and the bonus payable to employees.
In 2019, when this remuneration component was attributed, was met the Commission's proposal of not exceeding 3% of the distributable results.
Therefore and referring to paragraph b) of number 3 of article 2 of Law 28/2009 of 19 June, this Remuneration Committee proposes the maintenance of this criteria for 2020, namely that the variable remuneration of the Executive Members of the Board of Directors as a whole does not exceeds 3% of the distributable profits determined in the financial year of 2019.
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The decision to award Variable Remuneration depending on the results obtained has implicit the verification of the alignment of interests of the members of the Board of Directors with the interests of the Company and, therefore, is one of the mechanisms to be integrated in paragraph a) of number 3 of article 2 of Law No. 28/2009 of 19 June and simultaneously responding to paragraph e) of the same number of article 2 of Law No.28/2009, ensuring the limitation of the variable remuneration in the case that the results obtained are of a negative nature.
Concerning the information related to paragraph c) of number 3 of article 2 of Law No. 28/2009 of June 19, we certify the absence of any plan of allocation of shares or options to acquire shares by the members of the administration and supervision. This committee proposes to maintain this criterion.
The company's practice in the timing of annual payments must, in our opinion, remain, and therefore shall be excluded the possibility stated in paragraph d) of number 3 of article 2 of Law No. 28/2009.
Alberto Luis Lema Mandim Maria Conceição Monteiro da Silva Francelim Costa da Silva Graça
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