Annual Report • Apr 21, 2017
Annual Report
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José Lourenço Abreu Teixeira – Chairman Manuel Fernando Monteiro da Silva – Vice Chairman Maria Olívia Almeida Madureira – Secretary Jorge Manuel Coutinho Franco da Quinta - Secretary
José Reis da Silva Ramos – Chairman Maria Angelina Martins Caetano Ramos – Member Salvador Acácio Martins Caetano – Member Miguel Pedro Caetano Ramos – Member Nobuaki Fujii - Member Matthew Peter Harrison -Member Rui Manuel Machado de Noronha Mendes – Member
José Domingos da Silva Fernandes - Chairman Alberto Luis Lema Mandim – Member Daniel Broekhuizen – Member Maria Lívia Fernandes Alves – Deputy Member Kenichiro Makino – Deputy Member
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. Represented by José Pereira Alves or by José Miguel Dantas Maio Marques António Joaquim Brochado Correia - Deputy Member
2016 was marked by a slight recovery of the market, something that was being witnessed since 2015. Despite the fact that economic confidence improved, the commercial activity indicators are yet to show the growth that should already have been achieved.
From the legislative point of view, Portugal literally began 2016 with a new Government, which managed to maintain a relatively stable political and socio-economic context. The ability to maintain this scenario is key to ensuring that the country and its Companies can develop their business in a balanced and competitive way and regain the trust of international partners and investors.
Furthermore, it is crucial to stress that the trust of the international investors is also gained with the solidity of the automotive sector itself, which should be continuously exposed to consecutive legislative amendments and tax burden variations. In fact, we are often unexpectedly faced with new measures that compromise our current management, the fulfilment of our business plans and our credibility in the eyes of those who rely on our work.
Despite these vicissitudes, we can say that Toyota came to stay and it really did stay. This year we celebrate the 48th anniversary of our establishment as representatives of the brand in Portugal. As we journey toward the fifty years of existence of the now named Toyota Caetano Portugal, new business challenges are arising with the imminent European emissions standards that are stimulating the production of vehicles with alternative fuels, based on hybrid, plug-in hybrid, electric and fuel cell versions, the majority of which are being dealt with by Toyota and Lexus in a ground-breaking way.
With regard to the commercial activity of Toyota Caetano Portugal in 2016, we witnessed a growth of 4% compared to 2015 in the sales of vehicles, with a market share set at 4.1%, particularly justified by a significant increase in sales during the last few months of the year. This result is mainly due to the commitment and dedication of a work team engaged with the brand's objectives.
In what regards our industrial activity, we closed the year with a total of 1823 Toyota Land Cruiser 70 units, a model manufactured at the Toyota Caetano Portugal's Ovar Manufacturing Unit. This result is very representative, because it continues to prove our ability to face up to the challenge that was launched by Toyota Motor Corporation in 2015. I would like to highlight that this project emerged amidst an atmosphere of national austerity and precariousness. Even so, we decided to invest in the production of the Toyota Land Cruiser 70 for the South African market due to its strategic value and interest for the Portuguese economy, demonstrating, once again, that we are on the right track to ensuring the sustainability and operational growth of our Manufacturing Unit, which has always stood out for meeting the highest quality and excellence standards within Toyota worldwide.
In the Industrial Vehicles activity, we affirmed our leadership once again, with a market share of over 30%.
These figures demonstrate Toyota Caetano Portugal's ability to assertively address the challenges it is faced with, turning them into opportunities to create added value.
I would like to highlight the contribution of our Personnel, a team that is passionate, cooperative and committed to making Toyota grow in the different business areas it develops in Portugal. These are the principles that make us stand out and that, day after day, strengthen our performance and ability to develop our activity with precision and excellence.
2017 will surely be a year of hope, with increasingly demanding challenges. We maintain that the political scenario will remain extremely uncertain in the European and global context, so one of our main concerns is to ensure that measures are taken to foster the growth of the economic activity, protecting the investments made by the Companies.
The automotive business models are changing and our Companies need to adapt to the increasing use of the new digital channels. At a time when consumption habits and profiles are becoming increasingly differentiated, demanding real-time information about products and services, more than creativity to stand out from the crowd, the digital world raises the need to develop an integrated, Customer-focused business strategy. We should use the opportunities of the digital world to add value to our operations and, therefore, exceed expectations and dazzle our Customers.
For the new year, I would like to reaffirm our commitment and effort to continuing to grow in a sustainable, responsible manner, always aimed at creating value based on the way in which we develop our businesses and on the trusting relationships we have always sought to build with our Employees, Customers and Partners.
José Ramos (Chairman & CEO Toyota Caetano Portugal)
According to the provisions in article 245(1), subparagraph a) of the Securities Code, we have prepared the management report and the profit application proposal presented below, as well as the corresponding Appendixes, in compliance with the provisions in articles 447 and 448 of the Commercial Companies Code. For each of the Companies integrated into Toyota Caetano Portugal's consolidation perimeter, we shall present a list of the main events that occurred during the period under review and their impact on the financial statements.
In 2016, the main activity of the Ovar Manufacturing Unit resulted in the production of 1,823 units of the Land Cruiser 70 model. This volume was 12% higher than the one recorded in 2015. The "Pre Delivery Inspection" department transformed/prepared 3,733 units. This decrease in production was the result of the incorporation of less accessories and of the fact that some of these accessories are now incorporated by the dealers.
During the first semester, we placed greater emphasis on training, based on the multiskill development project, which allows increasing the skills of the employees and the capacity of the Manufacturing Unit.
This year, we introduced changes in the product (Minor Change) and enhanced the efficiency increase and cost reduction activities.
| PRODUCTION | 2016 | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|
| Toyota Physical Units | 1,823 | 1,629 | 1,664 | 1,111 | 1,381 |
| Transformed Physical Units | 3,773 | 4,353 | 3,271 | 2,339 | 2,174 |
| Total no. of Employees | 186 | 192 | 170 | 181 | 190 |
2016 was also marked by the following events:
Accumulated production of 300,000 plant-assembled vehicles, on 5 February, 2016;
A new time bank signed between Employees and the Company, making labour more flexible in order to meet market needs and fluctuations.
Audit conducted by APCER as part of the Quality Management System ISO 14001 (renewal) and Quality ISO 9001 (follow-up), on 23, 24 and 27 May.
Audit to the Assessment of the fire hazards to which the facility is exposed and of its responsiveness in critical scenarios (Risk Assessment), coordinated by TME with support from Tokyo Marine Kiln.
First Toyota European Safety Management System Audit, carried out on December 6 and 7.
For the coming year, we expect a production volume in line with the one witnessed in 2016. This volume will be affected by a new Minor Change in the Land Cruiser product , to be introduced in the 2nd semester. It will also be a year to consolidate our ongoing projects, which will allow us to sustainably increase the efficiency of the Manufacturing Unit.
2016 showed growth when compared to 2015, with a 16% increase, thus totalling 242,220 vehicles sold.
Passenger vehicles and light commercial vehicles showed a positive trend when compared to the equivalent period of the previous year, with a positive variation of 16% and 13%, respectively.
Source: ACAP (Portuguese Automobile Trade Association)
We should point out the following, as explanatory factors for the market's performance/growth:
In 2016, Toyota's sales showed an overall increase of 4%, reaching a total of 9,866 units, which correspond to a market share of 4.1%.
Toyota's performance was different, depending on whether we are talking about Light Passenger Vehicles or Light Commercial Vehicles:
(1) In Light Passenger Vehicles,Toyota grew by around 12%, with a market share of 4.1%.
This fact is, for the most part, the result of the performance of the Yaris and Auris volume models.
We should highlight the relevance of the Aygo and RAV4 models, which had a positive performance, in terms of both volume and market share;
We would particularly like to mention the strong growth in hybrid vehicles (+61% compared to 2015), which now represent more than 25% of the total of the brand's passenger vehicle sales..
(2) In Light Commercial Vehicles, Toyota has a market share of 4.2%.
Note: At the end of 2015, Toyota stopped selling the Dyna model.
For 2017, the overall priorities and goals defined include:
The Premium Market (at a time when the real concept of Premium Brand is being questioned) also witnessed a positive evolution compared to the previous year, showing 13% growth and reaching a total of 49,765 units sold.
The Premium Market represents nearly 24% of the total of the passenger market.
Source: ACAP (Portuguese Automobile Trade Association)
In a complex competitive environment, marked by the strong commercial aggressiveness of the competitors in the C-Premium and D-Premium segments, the Lexus brand, with only the Hybrid version offered on all its models, showed growth of 10%.
In 2016, Lexus registered 372 license plates, which represent a 0.7% market share in the Premium Market.
The performances of the new RC and GS models were decisive for the increase of Lexus sales in 2016.
The IS model, which represents approximately 30% of Lexus sales, was at model-cycle end in 2016, as it will be renewed early in 2017, a fact that somewhat limited a greater growth potential.
For 2017, the overall goals defined include:
In 2016, we should, once again, highlight the performance of the Toyota and Lexus hybrid models, which recorded 50% growth compared to 2015, corresponding to a 58.7% share of the hybrid vehicle market. In 2016, hybrid vehicles already accounted for 28.9% (+7 p.p. vs. 2015) of Toyota and Lexus passenger vehicle sales.
This performance was due to a broad and renewed offer of hybrid vehicles, corresponding to a total of 13 models - 7 Toyota and 6 Lexus - and to the focus on disseminating and promoting the benefits of hybrid technology.
For 2017 we expect the sale of hybrid vehicles to keep growing at a substantially higher rate than that of the growth of the market.
Source: ACAP (Portuguese Automobile Trade Association)
Considering the current economic climate and taking into account the projections published by the Bank of Portugal in the latest Economic Bulletin of December, 2017 is seen as a more positive year:
| Bank of Portugal Projections 2016- 2018 | |||||
|---|---|---|---|---|---|
| Rate of change, in percentage | |||||
| SB December 2016 | |||||
| 2016 | 2017 | 2018 | |||
| GDP | 1.2 | 1.4 | 1.5 | ||
| Private Consumption | 2.1 | 1.3 | 1.4 | ||
| Public Consumption | 1.0 | 0.0 | 0.4 | ||
| GFCF | -1.7 | 4.4 | 4.3 | ||
| Domestic Demand | 1.2 | 1.5 | 1.7 | ||
| Exports | 3.7 | 4.8 | 4.6 | ||
| Imports | 3.5 | 4.8 | 4.9 | ||
| HICP | 0.8 | 1.4 | 1.5 |
All indicators are expected to show positive developments compared to 2016.
In view of this scenario, the Market forecast for 2017 suggests growth of 1% over the previous year, corresponding to approximately 250,000 units sold:
In view of the conditions described, the goal for 2017 is to sell 10,720 Toyota and Lexus units, a figure that would correspond to a 5% increase over 2016 and amount to a 4.4% market share.
In 2016, the overall turnover of the After-Sales Division totalled more than 34 million euros. This figure includes the "Guarantee Extension +" and the "Total Assistance" services, whose turnover at the end of 2016 reached 1M Euros. The amount corresponding to parts for guarantees reached 4.3 M Euros.
The commercial parts activity (genuine & national incorporation), which excludes accessories, guarantees and services, amounted to approximately 26 M Euros. This amount represents growth of 2.5% compared to 2015.
Considering the reduction and ageing of the Toyota pool, this growth was an excellent result and implied sharp growth in customer retention. In recognition of these developments and of the results that were achieved, Toyota Motor Europe awarded Toyota Caetano Portugal (TCAP) with the prize for Best Strategy and Results in the After-Sales Value Chain, at the European level.
The accessories turnover (which includes merchandising) reached approximately 3M Euros in 2016. These sales were 13.9% higher than the figures achieved in the previous year, while implying growth in the incorporation per new vehicle sold.
Throughout 2016, the existing Toyota pool continued to decrease and age, a trend similar to the one witnessed overall in the Portuguese vehicle pool. In spite of this, TCAP asserted its commitment to promoting programmes that counteract this trend.
The focus was kept on customer retention in the Toyota workshop via the following projects:
| MARKET | TOYOTA + BT SALES | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| '15 | '16 | Variation | '15 | '16 | Variation | ||||
| % | SH | Share | SH | Share | % | ||||
| Counterbalanced Forklift Trucks |
1,025 | 1,173 | 14.4 | 295 | 28.8 | 324 | 27.6 | 9.8 | |
| Warehouse equipment |
1,856 | 1,442 | -22.3 | 870 | 46.9 | 499 | 34.6 | -42.6 | |
| Total CHM | 2,881 | 2,615 | -9.2 | 1165 | 40.4 | 823 | 31.5 | -29.4 |
In 2016, the Cargo Handling Machines market witnessed a decrease of 9.2%. This decline occurred only in the warehouse equipment segment and reflects an adjustment to levels that are considered normal, given that, in 2015, its growth was mainly the result of a large fleet deal.
Regarding the Counterbalanced Forklift Truck segment, the market witnessed growth of 14.4%, which is based on an improvement of the economic conditions, particularly in the industry area.
Regarding the sales of Toyota Counterbalanced Forklift Trucks there was a 9.8% increase in comparison with the same period in the previous year, thus placing our market share at 27.6%.
In terms of the sales of BT Warehouse Equipment, there was a 42.6% decrease, placing our market share at 34.6%. This decrease is justified by the fact mentioned in the market analysis, given that BT was responsible for closing the large fleet deal made in 2015.
However, in terms of sales ranking, Toyota + BT maintained its leadership in the Cargo Handling Machines Market, with a market share of 31.5%, well ahead of the 2nd best-rated company, whose share was only 18.7%.
Considering the current economic climate, together with the growth prospects, we believe that 2017 will be marked by a stabilization or slight growth of the market, with no significant variations.
With regard to the performance of Toyota + BT, we expect to maintain our market leadership position, even if that is a challenging goal, given that the aggressiveness of the competing brands has been significantly growing over the last few years.
Aware of the role it plays in the community in which it operates, over the years Toyota Caetano Portugal has been prioritising the implementation of a policy of transparency and openness, materialising its sustainability strategy in an ethical and socially and environmentally correct management.
During 2016, the outlined strategy is clearly evident in the actions that were implemented and in the results obtained:
As part of the Integrated Quality and Environment Management System, highlight goes to the conduction of internal and external audits (certification agency – SGS), consolidating the excellent management practices based on the ISO 9001 and ISO 14001 standards.
For the third consecutive year, Toyota Caetano Portugal participated in the annual report on Sustainable Development "Carbon Disclosure Project" (CDP), promoting corporate transparency and the calculation of the company's carbon footprint. The result achieved in 2016 was A-.
(The mission of the Carbon Disclosure Project (CDP) is to compile and distribute high-quality information to encourage investors, companies and governments to adopt measures to promote sustainable development and corporate competitiveness.)
Throughout 2016, and one year after the restructuring in the Human Resources area, we continued to develop and implement an integrated Personnel organization and management strategy.
In terms of priority measures, we highlight the redefinition of the main personnel management processes, policies and practices, in line with our business goals.
In this field, we proceeded with a review of the organizational corporate model, based on the mapping and update of function descriptions and on the development of a new performance, career and benefit management system. In addition to a sustained and transparent management support, these new corporate policies strengthen the Organization's commitment to talent retention and attraction.
The review of the performance assessment system was one of our priorities throughout 2016. This is a key component to guarantee that each Employee's role is in line with the goals and Values of Toyota Caetano Portugal, ensuring that all the stakeholders feel accountable and committed to our Personnel's performance.
Another relevant project was the update of the welcome and integration procedure, which will be ready to implement at Toyota Caetano Portugal in the first quarter of 2017. This is a programme aimed at providing guidelines for those who are taking their first steps in the Company. In addition to a presentation of Toyota Caetano Portugal, it includes the sharing of knowledge on the work to be carried out by the new Employees, as well as training on the main Occupational Quality, Safety and Environment concepts.
Simultaneously, we are developing new digital tools that will allow speeding up, simplifying and dematerializing these processes. An example of this are the new features available in the Employee Portal via the "Business Project Management."
Together with this increasing digitalization, the administrative department also began implementing the daily Kaizen in its structure; this methodology has shown results in terms of increasing team efficiency, reducing waste and improving service quality in this area, and will now be extended to the other departments.
2016 was also a year focused on strengthening our corporate culture through the implementation of a strategic plan to promote a Value-based management, supported by training sessions and internal initiatives aimed at fostering the sense of belonging, pride and engagement. As part of this plan, we created Clube Ser ("Being Club"), with the purpose of sharing a series of benefits aimed at improving the quality of the life of the Employees at work and reinforcing feelings of well-being and motivation.
This programme is based on a broader strategy focused on improving the Employees' work-life balance. In this context, we have provided for a series of measures in the areas of health and well-being, family and growth, community and citizenship, law and finances.
In connection with our strategic business goals, our investment resulted in a contribution to the excellent performance of the key Personnel Management and Development indicators presented below.
| No. of Employees | 2014 | 2015 | 2016 |
|---|---|---|---|
| TOYOTA CAETANO PORTUGAL, S.A. - GAIA | 251 | 253 | 269 |
| TOYOTA CAETANO PORTUGAL, S.A. - OVAR | 170 | 192 | 185 |
| TOYOTA CAETANO PORTUGAL, S.A. - LISBON | 73 | 73 | 73 |
| TOTAL | 494 | 518 | 527 |
In what regards the Establishment Plan, overall, there was a slight increase compared to 2015.
| Average Age | 2014 | 2015 | 2016 |
|---|---|---|---|
| TOYOTA CAETANO PORTUGAL, S.A. - GAIA | 45.86 | 46.20 | 45.86 |
| TOYOTA CAETANO PORTUGAL, S.A. - OVAR | 44.32 | 43.48 | 45.18 |
| TOYOTA CAETANO PORTUGAL, S.A. - LISBON | 44.12 | 43.77 | 44.44 |
| AVERAGE / TOTAL | 45.07 | 44.85 | 45.42 |
The average age of the Employees remained in figures close to those of previous years.
As a result of the business changes occurred at Toyota's Ovar Manufacturing Unit, which began assembling the Land Cruiser model for South Africa in 2015, the number of internships decreased.
With regard to the training of assets, we highlight the Team Management and Leadership programme, focused on an alignment in terms of Personnel management attitude and behaviours, in connection with the Corporate Culture area.
In 2016, the training of young workers was focused on the diversification of qualifications, with new Repair and Painting courses to address the needs of the Sector. At our five Education and Learning centres, which result from a 30-year-long partnership with the IEFP, the average employability rate is above 95%, an indicator that establishes our training centres as a benchmark in the vocational training area at the national level.
The following table presents the training activities attended by both Employees and Youths:
| EMPLOYEE TRAINING | 2014 | 2015 | 2016 |
|---|---|---|---|
| No. of Participants | 456 | 516 | 550 |
| Volume of Training (Hours) | 16,222 | 19,141 | 24,251 |
| YOUTH TRAINING (Learning) | 2014 | 2015 | 2016 |
| No. of Participants | 535 | 497 | 579 |
| Volume of Training (Hours) | 596,957 | 618,815 | 664,506 |
Finally, we highlight the work developed in the social responsibility area. Throughout the year, we also developed educational initiatives that involved the local community, namely the Porto Futuro intervention, a programme in which young people were able to experience working at Toyota Caetano Portugal for a day, and which aims at bringing students closer to the world of labour and entrepreneurial life.
In 2016, the main goal of our integrated Internal Marketing and Personnel Management policies and initiatives continued to include valorisation and retention of High-Potential and High-Performance Human Capital, making TCAP an excellent Company to work in.
According to data from the Bank of Portugal, in 2016 the Portuguese economy witnessed a trend, which is expected to last over the coming years, toward a moderate recovery underpinned by growth in exports, reduction of debt and moderation of private consumption, thus laying the foundations for a pattern of sustained growth accompanied by gradual improvement of the labour market.
The Bank of Portugal also estimates that the growth of 1.2 percent in the Gross Domestic Product (GDP) recorded in 2016 will increase to 1.4 in 2017 and 1.5 in the two following years.
In this context, Caetano Auto achieved a pre-tax profit of approximately 1M Euros, against the 416K Euros recorded for the equivalent period of 2015.
In the vehicle sales area, Caetano Auto invoiced 9,528 vehicles, of which 4,354 were new and 5,174 were used. We should highlight the importance of the used vehicle business, both for its weight in the total of overall sales, and for the fact that it enables the entrance of customers, both in the Toyota brand and in the Lexus brand, by closing a first purchase in semi-new vehicles.
In terms of after-sales services, despite the reduction of the vehicle pool occurred over the last few years, Caetano Auto's turnover in 2016 exceeded 50 million euros (which include, in addition to mechanics, Caetano Glass, as the company's own vehicle glass repair and replacement brand and collision through major accident repairs).
In 2016, Caetano Auto ceased to operate in Castelo Branco, Viana do Castelo, Penafiel and Portimão, as part of an internal restructuring operation aimed mainly at putting greater emphasis on the most representative markets.
In that context, we inaugurated a fully equipped facility in Santa Maria da Feira, by the end of the year, as part of a total gross investment that, in 2016, amounted to over 1 million euros.
The political change occurred in Cape Verde in 2016, together with the strong investments in the construction area, particularly the ones made by large hotel chains on the main islands (Santiago, Sal and Boavista), resulted in increased market confidence that had a positive influence on the sales of new vehicles.
| VEHICLES | 2016 | Variation | |||
|---|---|---|---|---|---|
| SEGMENT | BRAND | 2015 | Qty. | % | |
| Light-Duty Passenger Vehicles | Toyota | 106 | 91 | +15 | +14.15% |
| Light Commercial Vehicles | Toyota | 226 | 185 | +41 | +18.14% |
| Heavy Commercial Vehicles | Toyota | 26 | 20 | +6 | +23.07% |
| 358 | 295 | +63 | +17.6% |
In 2016, compared to the equivalent period of 2015, Caetano Auto, CV, S.A sold (+63) units (+17.6%).
The models that contributed the most toward that growth were mainly the commercial vehicles from the traditional Hiace, Hilux and Land Cruiser ranges.
| 2016 | 2015 | Variation | ||
|---|---|---|---|---|
| Value | % | |||
| Parts/Accessories | 131,029,866 | 158,817,568 | -27,787,702 | -21.21% |
| Workshop (Labour) | 32,696,923 | 32,915,140 | -218,217 | -0.67% |
| 163,726,789 | 191,732,708 | -28,005,919 | -17.11% | |
(Amounts in ECV)
In the After-Sales area, the main reason for the downward trend in turnover was the unbundling of Caetano One's activity. Until 2015, Caetano One's after-sales activity was integrated into Caetano Auto's sales, and the unbundling occurred at the beginning of 2016.
The partnership with ENACOL, with the goal of operating fast services and the sale of parts in the Assomada station, in Nhagar, and Achada de S. Filipe, in Praia, achieved an increase of (+20.7%) compared to the equivalent period of 2015. In January 2017 we will start running another fast-service station, this time on the Island of Sal, in Santa Maria.
This partnership will be expanded to cover fuel operation from February 2017 onwards.
With regard to the PGO+ assessment, Caetano Auto achieved a result of 87%, +4p.p compared to the previous year, which places it at the level of European facilities.
Turnover reached € 4.5 M Euros, which corresponds to an increase of 23.6% compared to the equivalent period of the previous year.
This growth has to do with the fact that the average fleet in operation increased approximately 26%. At the end of 2016, it was composed as follows:
In light of the above, the Company closed the financial period of 2016 with a positive Net Income of 244,000 Euros.
During 2016, the consolidation perimeter of the Toyota Caetano Portugal Group remained unchanged compared to the end of the 2015 financial year.
In 2016, the Group had a turnover of 337 million Euros, approximately 18 million Euros higher (+5.7%) than the one obtained in the same period of 2015. This growth is mainly related to the project for the assembly of off-road vehicles for export (LC70), at the Ovar manufacturing plant, which only came into effect from the second semester of 2015 onwards. Therefore, the contribution of the motor vehicle industrial division for the turnover is approximately 35 million Euros, compared to 25 million Euros recorded in the same period of 2015.
Always with the aim of positioning the Toyota brand as a reference player in the automotive market, there was the need to implement a strategy based on a slight increase of the profit margin that, together with an appropriate management of the business-related costs, allowed achieving an E.B.I.T.D.A. of approximately 25 million Euros, higher than the one recorded in 2015 by about 1.2 million Euros (+4.9%).
However, we should highlight that, in this regard, the 2015 financial year was positively affected by extraordinary results, corresponding to an amount of nearly 2.9 million Euros and, given that there were no similar circumstances in 2016, the E.B.I.T.D.A. that was generated becomes even more significant.
The financial results, negative by approximately 2.3 million Euros, are higher than the ones recorded in the same period of 2015 which were approximately 2.1 million Euros, and express the greater financing expenses incurred by the Toyota Caetano Portugal Group in order to handle its increase of activity and, consequently, the creation of inventories that can accommodate the demands of the market, as well as the growth in the amount of credit that is being granted.
As a consequence of the investment that was made, particularly in terms of industrial transportation equipment (Forklifts), as a means to support the business model implemented in this business area, there was an increase of approximately 2 million Euros in the Amortizations and Depreciations item that, combined with the aforementioned factors, resulting in a consolidated net income of approximately 6 million Euros, compared to the 6.2 million Euros achieved in 2015.
A degree of financial autonomy of 46,3% continues to reflect the appropriateness of our capital structure management policy.
Below is the table of comparative indicators, presented in thousands of Euros, which summarizes the evolution of the activity and performance of the Toyota Caetano Portugal Group:
| Dec 15 | Dec 16 | Variation | |
|---|---|---|---|
| Turnover | 319,308 | 336,956 | 5.5% |
| Gross Profit | 55,300 | 61,693 | 11.6% |
| % (f) sales | 17.3% | 18.3% | |
| External supplies and services | 36,417 | 37,106 | 1.9% |
| % (f) sales | 11.4% | 11.0% | |
| Staff costs | 38,673 | 39,365 | 1.8% |
| % (f) sales | 12.1% | 11.7% | |
| E.B.I.T.D.A. | 23,932 | 25,106 | 4.9% |
| % (f) sales | 7.5% | 7.5% | |
| Operating income | 10,270 | 9,565 | -6.9% |
| % (f) sales | 3.2% | 2.8% | |
| Financial income | -2,105 | -2,297 | -9.1% |
| % (f) sales | -0.7% | -0.7% | |
| Consolidated net income | 6,167 | 6,003 | -2.7% |
| % (f) sales | 1.9% | 1.8% | |
| Net Bank Credit | 52,448 | 54,665 | 4.2% |
| Degree of financial autonomy | 48.8% | 46.3% |
Finally, we should highlight that, according to the latest economic development estimates for Portugal, the trend towards growth in the automotive sector is expected to continue, particularly in the Hybrid segment, something that will allow the Toyota Caetano Group to strengthen its sustainability in the market.
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 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).
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 geographically diversified Group, with subsidiaries located in Cape Verde, 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 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.
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:
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 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 own shares during this fiscal year. On December 31st, 2016, the company did not hold any own shares.
We hereby declare, under the terms and for the purposes of Article 245(1c) of the Securities Code that, as far as we are aware, the individual and consolidated statements of Toyota Caetano Portugal regarding 2016 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 which they face.
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 2016's profits obtained in the financial year, amounting to Euros 5.950.755,83 stated in the individual financial statements of Toyota Caetano Portugal:
Since the end of 2016 and up to current date, no relevant facts occurred worth of being mentioned.
In concluding this report we wish to express our thanks to:
Vila Nova de Gaia, March 27, 2017
The Board of Directors José Reis da Silva Ramos –Chairman Maria Angelina Martins Caetano Ramos Salvador Acácio Martins Caetano Miguel Pedro Caetano Ramos Nobuaki Fujii -Vogal Matthew Peter Harrison -Vogal Rui Manuel Machado de Noronha Mendes
(as per article 447 of the Companies Code and according to Article 9(d) and Article 14(7), both of Regulation 5/2008 of CMVM)
In compliance with the provisions of article 447 of the Commercial Companies Code, it is hereby declared that, on December 31st, 2016, the members of the Company's management and supervisory boards did not hold any of its shares or bonds.
It is hereby declared that the members of the Company's management and supervisory boards were not engaged, during the fiscal year 2016, in any acquisitions, encumbrances or disposals involving the Company's shares or bonds.
It is further stated that the Company's securities held by companies in which the directors and auditors hold corporate positions are as follows:
GRUPO SALVADOR CAETANO, SGPS, S.A. (of which Maria Angelina Martins Caetano Ramos, is the Chairwoman of the Board of Directors, Salvador Acácio Martins Caetano is the Vice-Chairman of the Board of Directors, José Reis da Silva Ramos is a Member of the Board of Directors and Miguel Pedro Caetano Ramos is a Member of the Board of Directors) sold 21,288,281 shares on 23 December 2016 and thus, on 31 December 2016, held no shares or bonds.
the shareholder FUNDAÇÃO SALVADOR CAETANO (of which José Reis da Silva Ramos is the Chairman of the Board of Directors, Maria Angelina Martins Caetano Ramos, is the spouse of the Chairman of the Board of Directors, and Salvador Acácio Martins Caetano and Rui Manuel Machado de Noronha Mendes, are Members of the Board of Directors) performed no transactions and, thus, on 31 December 2016, held 138,832 shares, with a nominal value of 1 euro each.
the shareholder COVIM – Sociedade Agrícola, Silvícola e Imobiliária, S.A (of which Maria Angelina Martins Caetano Ramos, is the Chairwoman of the Board of Directors, and José Reis da Silva Ramos is the spouse of the Chairwoman of the Board of Directors) performed no transactions in 2016 and, thus, on 31 December 2016, held 393,252 shares, with a nominal value of 1 euro each.
the sharedholder COCIGA - Construções Civis de Gaia, S.A. (of which Maria Angelina Martins Caetano Ramos, is the Chairwoman of the Board of Directors, José Reis da Silva Ramos is the spouse of the Chairwoman of the Board of Directors, and Salvador Acácio Martins Caetano is a Member of the Board of Directors) performed no transactions in 2016 and, thus, on 31 December 2016, held 290 shares, with a value of 1 euro each.
the sharedholder SALVADOR CAETANO - AUTO - SGPS, S.A. (of which Salvador Acácio Martins Caetano is the Chairman of the Board of Directors, Maria Angelina Martins Caetano Ramos, is a Member of the Board of Directors and Miguel Pedro Caetano Ramos is a Member of the Board of Directors), bought 21,288,281 shares, on 31 December 2016, held 21,288,281 shares with a nominal value of 1 euro each.
For the purpose provided in the final section of article 447(1) of the Commercial Companies Code (companies in a control or group relationship with the company), it is stated that:
• José Reis da Silva Ramos, Chairman of the Board of Directors, holds:
1 This percentage includes shares held by the spouse
• Maria Angelina Martins Caetano Ramos, Member of the Board of Directors, holds:
1 This percentage includes shares held by the spouse
• Salvador Acácio Martins Caetano, Member of the Board of Directors, holds:
1 This percentage includes shares held by the spouse
• Miguel Pedro Caetano Ramos, Member of the Board of Directions, holds:
In accordance with article 448(4) of the Companies Code, the following is a list of the shareholders that, on 31 December 2016, held, at least, 10%, 33% or 50% of the share capital of this company, as well as of the shareholders that have ceased to hold the aforementioned capital percentages:
| Shareholders | Shares | |||
|---|---|---|---|---|
| Holders of at least 10% | ||||
| Held 1 | Purchased | Sold | Held 2 | |
| 31.12.2015 | 2016 | 2016 | 31.12.2016 | |
| TOYOTA MOTOR EUROPE NV/SA _______________ |
9,450,000 | -- | -- | 9,450,000 |
1Share capital on 31.12.2015: € 35,000,000.00, represented by 35,000,000 shares with a nominal value of € 1.00 each. 2Share capital on 31.12.2016: € 35,000,000.00, represented by 35,000,000 shares with a nominal value of € 1.00 each.
| Shareholders Holders of at least 50% |
Shares | ||||||
|---|---|---|---|---|---|---|---|
| Held 1 | Purchased | Sold | Held 2 | ||||
| 31.12.2015 | 2016 | 2016 | 31.12.2016 | ||||
| GRUPO SALVADOR CAETANO, SGPS, SA | 21,288,281 | -- | 21,288,281 | -- | |||
| SALVADOR CAETANO - AUTO, SGPS, S.A. | -- | 21,288,281 | -- | 21,288,281 | |||
| ______________ |
1Share capital on 31.12.2015: € 35,000,000.00, represented by 35,000,000 shares with a nominal value of € 1.00 each. 2 Share capital on 31.12.2016: € 35,000,000.00, represented by 35,000,000 shares with a nominal value of € 1.00 each.
(Under the terms of Regulation 5/2008 of CMVM)
On 31 December 2016, the shareholders with qualified shareholdings in the company's share capital are the following:
| SHAREHOLDER | Shares | % of voting rights |
|---|---|---|
| ______________ Salvador Caetano - Auto - SGPS, S.A. |
21,288,281 | 60.824 |
| Toyota Motor Europe NV/SA | 9,450,000 | 27.000 |
| Salvador Fernandes Caetano (Heirs) | 1,399,255 | 3.998 |
______________________________________________________________________________________
December 2016
| (Euros) | ||
|---|---|---|
| Dec'16 | Dec '15 | |
| SALES | 274.422.481 | 256.808.132 |
| CASHFLOW | 15.547.936 | 14.016.201 |
| NET INCOME | 5.950.756 | 6.474.875 |
| NET FINANCIAL EXPENSES | 2.192.636 | 1.837.543 |
| PAYROLL EXPENSES | 16.347.273 | 15.524.042 |
| NET INVESTMENT | 9.116.941 | 16.958.121 |
| GROSS WORKING CAPITAL | 83.579.339 | 76.341.950 |
| GVA | 40.105.224 | 38.449.031 |
| UNITS SOLDS | 15.750 | 14.678 |
| NUMBER OF EMPLOYEES | 525 | 519 |
| ASSETS | Notes | 31-12-2016 | 31-12-2015 |
|---|---|---|---|
| NON CURRENT ASSETS | |||
| Intangible Assets | 9 | 629.129 | 942.316 |
| Tangible Fixed Assets | 6 | 29.041.382 | 27.501.209 |
| Investment Properties | 7 | 15.122.686 | 15.584.625 |
| Goodwill | 8 | 611.997 | 611.997 |
| Financial Investments - Equity Method | 10 | 37.196.156 | 39.023.342 |
| Other Financial Investments | 11 | 59.504 | 59.504 |
| Deferred Tax Assets | 16 | 1.511.801 | 1.586.483 |
| Total Non Current Assets | 84.172.655 | 85.309.476 | |
| CURRENT ASSETS | |||
| Inventories | 12 | 52.135.449 | 58.717.810 |
| Accounts Receivable | 13 | 101.960.592 | 87.035.232 |
| Other Accounts Receivable | 14 | 1.288.272 | 1.287.316 |
| Corporate Income | 16 | 52.316 | 971.895 |
| Other Current Assets | 15 | 1.454.032 | 952.845 |
| Other Financial Investments | 11 | 3.432.799 | 3.432.799 |
| Cash And Cash Equivalents | 5 | 8.654.980 | 8.024.428 |
| Total Current Assets | 168.978.439 | 160.422.324 | |
| 253.151.094 | 245.731.799 |
| EQUITY AND LIABILITIES | Notes | 31-12-2016 | 31-12-2015 | |
|---|---|---|---|---|
| EQUITY | ||||
| Share Capital | 35.000.000 | 35.000.000 | ||
| Legal Reserve | 7.498.903 | 7.498.903 | ||
| Adjustments to Financial Investments | 2.705.421 | 4.297.753 | ||
| Revaluation Reserve | 6.195.184 | 6.195.184 | ||
| Other Reserves | 67.319.346 | 68.539.522 | ||
| Retained Earnings | 1.707.102 | |||
| Net Income | 5.950.756 | 6.474.875 | ||
| Total Equity | 17 | 126.376.712 | 128.006.237 | |
| LIABILITIES | ||||
| NON CURRENT LIABILITIES | ||||
| Loans | 18 | 30.350.204 | 24.128.967 | |
| Defined Benefit Plan Liabilities | 23 | 5.108.420 | 3.534.000 | |
| Deferred Tax Liabilities | 16 | 214.348 | 214.348 | |
| Total Non Current Liabilities | 35.672.972 | 27.877.315 | ||
| CURRENT LIABILITIES | ||||
| Loans | 18 | 32.986.922 | 36.450.473 | |
| Accounts Payable | 19 | 30.179.049 | 31.698.659 | |
| Other Accounts Payable | 21 | 198.711 | 424.319 | |
| Public Entities | 20 | 9.936.592 | 8.250.374 | |
| Other Current Liabilities | 22 | 17.080.130 | 12.929.890 | |
| Defined Benefit Plan Liabilities | 23 | 691.580 | ||
| Derivative Financial Instruments - Swapp | 25 | 28.425 | 94.532 | |
| Total Current Liabilities | 91.101.410 | 89.848.247 | ||
| Total Liabilities | 126.774.382 | 117.725.562 | ||
| Total Equity + Liabilities | 253.151.094 | 245.731.799 |
CHARTERED ACCOUNTANT BOARD OF DIRECTORS
ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSE REIS DA SILVA RAMOS –Presidente
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS NOBUAKI FUJII
MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
| Notas | 31-12-2016 | 31-12-2015 | |
|---|---|---|---|
| Operational Gains | |||
| Sales and Service Rendered | 28 | 274.422.481 | 256.808.132 |
| Other Gains | 30 | 36.201.733 | 39.413.530 |
| Variation in Production | 12 | -367.778 | -3.804.553 |
| Total Operational Gains | 310.256.437 | 292.417.109 | |
| Operational Expenses | |||
| Cost of Goods Sold and Raw Material C | 13 | -231.161.973 | -212.713.834 |
| External Supplies and Services | 29 | -36.105.468 | -38.677.933 |
| Payrol Expenses | 30 | -16.347.273 | -15.524.042 |
| Depreciations | 6 7 9 | -8.351.894 | -7.579.064 |
| Provision and Impairment | 27 | -15.253 | 372.124 |
| Other Expenses | 30 | -9.017.567 | -9.757.147 |
| Total Operational Expenses | -300.999.428 | -283.879.896 | |
| Operational Income | 9.257.009 | 8.537.213 | |
| Gains in Financial Investmets - Equit Method | 10 | 626.455 | 1.142.682 |
| Interest Expenses | 31 | -2.458.924 | -2.095.502 |
| Interest Income | 31 | 266.288 | 257.959 |
| Income before Taxes | 7.690.828 | 7.842.351 | |
| Income Tax for the Year | 16 | -1.740.072 | -1.367.476 |
| Net Income | 5.950.756 | 6.474.875 |
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSE REIS DA SILVA RAMOS –Presidente
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS NOBUAKI FUJII MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES Statement of the comprehensive income at 31 december 2016 and 2015
| 31-12-2016 | 31-12-2015 | |
|---|---|---|
| Net profit for the period | 5.950.756 | 6.474.875 |
| Components of other consolidated comprehensive income, | ||
| that could not be recycled by profit and loss | ||
| Remeasurement (Actuarial losses gross of tax) (Note 23) | -1.574.421 | -700.000 |
| Deferred tax of actuarial losses (Note 16) | 354.245 | 157.500 |
| Other changes in equity | -1.110.105 | -979.610 |
| Comprehensive income | 3.620.475 | 4.952.765 |
CHARTERED ACCOUNTANT BOARD OF DIRECTORS
ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSE REIS DA SILVA RAMOS –Presidente MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS NOBUAKI FUJII MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
| Re val ion uat |
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|
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| Ba lan Sh 31 De be r 2 01 4 eet at ce cem |
35 .00 0.0 00 |
7.4 98 .90 3 |
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70 .12 9.9 65 |
88 .62 9.8 53 |
21 9.8 93 |
3.7 53 .72 5 |
127 .60 3.4 71 |
| Ch in p erio d an g es |
0 | ||||||||
| ME P |
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75 5.2 12 |
75 5.2 12 |
198 .51 3 |
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|||||
| Ot he r C han in E ity g es qu |
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97 9.6 10 - |
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|
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|||||||
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4.9 52 .76 5 |
4.9 52 .76 5 |
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0 | ||||||||
| Div ide nds |
-1. 33 1.5 94 |
1.3 31 .59 4 - |
41 8.4 06 - |
2.8 00 .00 0 - |
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||||
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| 0 | 0 | 0 | 0 | 1.3 31 .59 4 - |
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41 8.4 06 - |
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4.5 50 .00 0 - |
|
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35 .00 0.0 00 |
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6.1 95 .18 4 |
4.2 97 .75 3 |
68 .53 9.5 22 |
86 .53 1.3 62 |
0 | 6.4 74 .87 5 |
128 .00 6.2 37 |
| Ba lan Sh 31 De be r 2 01 eet at 5 ce cem río Alt ões do |
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4.2 97 3 .75 |
68 .53 9.5 22 |
86 .53 1.3 62 |
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128 .00 6.2 37 |
| era ç no pe ME P |
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||||||
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1.1 42 .68 2 |
5 - 1.1 42 .68 2 |
82 .19 3 |
1.2 24 .87 5 |
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| ( ) Re Ac rial los ent tua me asu rem ses |
-1. 22 0.1 76 |
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|||||
| Ot he r C han in E ity g es qu |
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- 1.6 24 .90 8 |
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| 0 | 0 | 0 | 1.5 92 .33 2 |
1.2 20 .17 6 |
- 2.8 12 .50 7 |
1.7 07 .10 2 |
1.2 24 .87 5 |
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|
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- | - | - | - 5.9 50 .75 6 |
- 5.9 50 .75 6 |
||||
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3.6 20 .47 5 |
3.6 20 .47 5 |
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|||||||
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|
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6.1 95 .18 4 |
2.7 05 .42 1 |
67 .31 9.3 46 |
83 .71 8.8 55 |
1.7 07 .10 2 |
5.9 50 .75 6 |
126 .37 6.7 12 |
CHARTERED ACCOUNTANT BOARD OF DIRECTORSALEXANDRA MARIA PACHECO GAMA JUNQUEIRA
JOSE REIS DA SILVA RAMOS –President MARIA ANGELINA MARTINS CAETANO RAMOSSALVADOR ACÁCIO MARTINS CAETANOMIGUEL PEDRO CAETANO RAMOSNOBUAKI FUJIIMATTHEW PETER HARRISONRUI MANUEL MACHADO DE NORONHA MENDES
| Notes | 2015 | 2015 | (Euros) | |||
|---|---|---|---|---|---|---|
| STATEMENT OF CASH FLOWS ON OPERATING ACTIVITIES | ||||||
| Collections from Customers | 350.471.366 | 337.945.478 -309.005.017 |
||||
| Payments to Suppliers Payments to Personnel |
-316.734.582 -8.285.675 |
-8.557.827 | ||||
| Operating Flow | 25.451.110 | 20.382.635 | ||||
| Payments of Income Tax | -456.559 | -710.630 | ||||
| Other Collections/Payments Related to Operating Activities | -24.356.486 | -25.254.542 | ||||
| Cash Flow from Operating Activities | 638.066 | -5.582.537 | ||||
| STATEMENT OF CASH FLOWS ON INVESTING ACTIVITIES | ||||||
| Collections from: | ||||||
| Investments | ||||||
| Tangible Fixed Assets | 6 | 3.830.105 | 4.393.169 | |||
| Investment Subsidy | ||||||
| Interest and Others | ||||||
| Dividends | 10 | 1.624.908 | 5.455.013 | 4.393.169 | ||
| Payments to: | ||||||
| Investments | 10 | -171 | ||||
| Tangible Fixed Assets | 6 | -90.014 | -5.211.243 | |||
| Intangible Assets | 7 | -175.871 | -266.057 | -946.670 | -6.157.913 | |
| Cash Flow from Investing Activities | ||||||
| 5.188.957 | -1.764.744 | |||||
| FINANCING ACTIVITIES | ||||||
| STATEMENT OF CASH FLOWS ON FINANCING ACTIVITIES | ||||||
| Collections from: | ||||||
| Lease | 6.352.620 | 8.647.614 | ||||
| Loans | 24.298.957 | 30.651.577 | 6.185.217 | 14.832.831 | ||
| Payments to: | ||||||
| Loans | -25.110.526 | |||||
| Lease Down Payments | -3.421.170 | -2.217.437 | ||||
| Interest and Others | -2.053.741 | -1.787.537 | ||||
| Dividends | 17 | -5.262.611 | -35.848.047 | -4.560.202 | -8.565.176 | |
| Cash Flow from Financing Activities | -5.196.470 | 6.267.655 |
| Cash and Cash Equivalents at Beginning of Period | 5 | 8.024.428 | 9.104.055 | |
|---|---|---|---|---|
| Cash and Cash Equivalents at End of Period | 8.654.980 | 8.024.428 | ||
| Net Flow in Cash Equivalents | 630.552 | -1.079.626 | ||
| CHARTERED ACCOUNTANT | BOARD OF DIRECTORS | |||
| ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA | JOSE REIS DA SILVA RAMOS –President | |||
| MARIA ANGELINA MARTINS CAETANO RAMOS | ||||
| SALVADOR ACÁCIO MARTINS CAETANO | ||||
MIGUEL PEDRO CAETANO RAMOS NOBUAKI FUJII MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
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.
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, 2016, 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 Saltano – Investimentos e Gestão, S.G.P.S., S.A. ("Saltano") 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)
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. 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 Interpretation Committee ("SIC"), that have been endorsed by the European Union, in force at the date of preparation of the financial statements.
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
(Amounts in Euros)
provisions of IFRS 1 - First-time adoption of international financial reporting standards ("IFRS 1") see Note 4.
The following standards, interpretations, amendments and revisions endorsed by the European Union and mandatory in the fiscal years beginning on or after 1 January 2016, were adopted by the first time in the fiscal year ended at 31 December 2016:
a) Changes to accounting standards applicable to periods beginning on or after 1 January 2016:
(i) Standards:
IAS 1 (amendment), 'Disclosure initiative'. This amendment provides guidance on materiality and aggregation, the presentation of subtotals, the structure of financial statements, the disclosure of accounting policies and OCI items presentation when arising from investments measured at equity method. This amendment did have insignificant impact in the Entity financial statements.
IAS 16 and IAS 38 (amendment), 'Acceptable methods of depreciation and amortisation calculation'. This amendment clarifies that the use of revenue-based methods to calculate the depreciation / amortization of an asset is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an asset. It shall be applied prospectively. This amendment did not have any impact in the Entity financial statements.
IAS 16 and IAS 41 (amendment), 'Agriculture: bearer plants'. This amendment defines the concept of a bearer plant and removes it from the scope of IAS 41 – Agriculture, to the scope of IAS 16 – Property, plant and equipment, with the consequential impact on measurement. However, the produce growing on bearer plants will remain within the scope of IAS 41 – Agriculture. This amendment did not have any impact in the Entity financial statements.
IAS 19 (amendment), 'Defined benefit plans – Employee contributions'. This amendment applies to contributions from employees or third parties to defined benefit plans and aims to simplify the accounting when contributions are not associated to the number of years of service. This amendment did not have any impact in the financial Entity financial statements.
IAS 27 (amendment), 'Equity method in separate financial statements'. This amendment allows entities to use equity method to measure investments in subsidiaries, joint ventures and associates in separate financial statements. This amendment applies retrospectively. This amendment did not have any impact in the Entity financial statements.
Amendment to IFRS 10, 12 and IAS 28, 'Investment entities: applying consolidation exception'. This amendment clarifies that the exemption from the obligation to prepare consolidated financial statements by investment entities applies to an intermediate parent which is a subsidiary of an investment entity. The policy choice to apply the equity method, under IAS 28, is extended to an entity which is not an investment entity, but has an interest in an associate, or joint venture, which is an investment entity. This amendment did not have any impact in the Entity financial statements.
IFRS 11 (amendment), 'Accounting for the acquisition of interests in joint operations'. This amendment adds new guidance on how to account for the acquisition of an interest in a joint
operation that constitutes a business, through the application of IFRS 3's principles. This amendment did not have any impact in the Entity financial statements.
Annual Improvements 2010 – 2012. The 2010-2012 annual improvements affects: IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16 and 38, and IAS 24. This amendment did have insignificant impact in the Entity financial statements.
Annual Improvements 2012 - 2014. The 2012-2014 annual improvements affects: IFRS 5, IFRS 7, IAS 19 and IAS 34. This amendment did have insignificant impact in the Entity financial statements.
b) Standards that have been published and are mandatory for the accounting periods beginning on or after 1 January 2017, that were already endorsed by the EU and the Entity decided not to adopt immediately:
IFRS 9 (new), 'Financial instruments' (effective for annual periods beginning on or after 1 January 2018). IFRS 9 replaces the guidance in IAS 39, regarding: (i) the classification and measurement of financial assets and liabilities; (ii) the recognition of credit impairment (through the expected credit losses model); and (iii) the hedge accounting requirements and recognition. This amendment did not have any impact in the Entity financial statements.
IFRS 15 (new), 'Revenue from contracts with customers' (effective for annual periods beginning on or after 1 January 2018). This new standard, applies only to contracts with customers to provide goods or services, and requires an entity to recognise revenue when the contractual obligation to deliver the goods or services is satisfied and by the amount that reflects the consideration the entity is expected to be entitled to, following a five step approach. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
c) Standards (new and amendments) and interpretations that have been published and are mandatory for the accounting periods beginning on or after 1 January 2017, but are not yet endorsed by the EU and the Entity decided not to adopt immediately:
(i) Standards:
IAS 7 (amendment), 'Cashflow statement – Disclosure initiative' (effective for annual periods beginning on or after 1 January 2017). This amendment is still subject to endorsement by the European Union. This amendment introduces an additional disclosure about the changes in liabilities arising from financing activities, disaggregated between cash changes and non-cash changes and how it reconciles with the reported cash flows from financing activities, in the Cash Flow Statement. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
IAS 12 (amendment),'Income taxes – Recognition of deferred tax assets for unrealised losses' (effective for annual periods beginning on or after 1 January 2017). This amendment is still subject to endorsement by the European Union. This amendment clarifies how to account for deferred tax assets related to assets measured at fair value, how to estimate future taxable profits when temporary deductible differences exist and how to assess recoverability of deferred tax assets when restrictions exist in the tax law. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
IAS 40 (amendment), 'Transfers of Investment property' (effective for annual periods beginning on or after 1 January 2018). This amendment is still subject to endorsement by the
European Union. This amendment clarifies when assets are transferred to, or from investment properties, the evidence of the change in use is required. A change of management intention in isolation is not enough to support a transfer. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
IFRS 2 (amendment), 'Classification and measurement of share-based payment transactions' (effective for annual periods beginning on or after 1 January 2018). This amendment is still subject to endorsement by the European Union. This amendment clarifies the measurement basis for cash-settled, share-based payments and the accounting for modifications to a share-based payment plan that change the classification an award from cash-settled to equity-settled. It also introduces an exception to the principles in IFRS 2 that will require an award to be treated as if it was wholly equity-settled, where an employer is obliged to withhold an amount for the employee's tax obligation associated with a share-based payment and pay that amount to the tax authority. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
IFRS 4 (amendment), 'Insurance contracts (Applying IFRS 4 with IFRS 9)' transactions' (effective for annual periods beginning on or after 1 January 2018). This amendment is still subject to endorsement by the European Union. This amendment allows companies that issue insurance contracts the option to recognise in Other Comprehensive Income, rather than Profit or Loss the volatility that could rise when IFRS 9 is applied before the new insurance contract standard is issued. Additionally, it is given an optional temporary exemption from applying IFRS 9 until 2021, to the companies whose activities are predominantly connected with insurance, not being applicable at consolidated level. This amendment did not have any impact in the Entity financial statements.
Amendments to IFRS 15 'Revenue from contracts with customers' (effective for annual periods beginning on or after 1 January 2018). These amendments are still subject to endorsement by European Union. These amendments refer to additional guidance for determining the performance obligations in a contract, the timing of revenue recognition from a license of intellectual property, the review of the indicators for principal versus agent classification, and to new practical expedients to simplify transition. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
IFRS 16 (new), 'Leases' (effective for annual periods beginning on or after 1 January 2019). This standard is still subject to endorsement by European Union. This new standard replaces the IAS 17 with a significant impact on the accounting by lessees that 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.
Annual Improvement 2014 - 2016, (generally effective for annual periods beginning on or after 1 January 2017). These improvements are still subject to endorsement by European Union. The 2014-2016 annual improvements impacts: IFRS 1, IFRS 12 and IAS 28. It is not expected significant impact of future adoption of this amendment on the Entity financial statements.
(ii) Interpretations:
IFRIC 22 (new), 'Foreign currency transactions and advance consideration' (effective for annual periods beginning on or after 1 January 2018). This interpretation is still subject to endorsement by European Union. An Interpretation to IAS 21 'The effects of changes in foreign exchange rates' it refers to the determination of the "date of transaction" when an entity either
pays or receives consideration in advance for foreign currency denominated contracts". The date of transaction determines the exchange rate used to translate the foreign currency transactions. This interpretation did not have any impact in the Entity financial statements.
. . .
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 |
|---|
| 20 - 50 |
| 7 - 16 |
| 4 - 5 |
| 3 - 14 |
| 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.
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
(Amounts in Euros)
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 7).
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.
.
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 recognised 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 33).
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 labor, 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.
Non repayable subsidies obtained to finance investment in tangible fixed assets are recorded, only when there is a reasonable guaranty of receiving, as "Other non current liabilities" and "Other current liabilities", and recognized in the income statement as an income in accordance with the depreciation of the related tangible fixed assets.
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 fulfill the conditions for their concession.
The benefit related with government borrowings at an interest rate lower than the market interest rate. The benefit of the below-market rate of interest shall be recognized and measured at fair value. The benefit of the below-market rate of interest shall be measured as the difference between the initial carrying value of the loan determined in accordance with IAS 39 and the proceeds received. The benefit is accounted in accordance with IAS 20. The entity shall consider the conditions and obligations that have been, or must be, met when identifying the costs for which the benefit of the loan is intended to compensate.
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 recognised 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.
Provisions are recognized when, and only when, the company has a present obligation (legal or constructive) arising from a past event; it is probable that an outflow of resources will be required
and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each statement of financial position date and adjusted as to reflect the best estimate of its fair value as of that date (Note 24).
Restructuring provisions are recorded by the company whenever there is a formal and detailed restructuring plan and it has been communicated to parties involved.
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.
This category is divided into two subcategories: "investments held for trading" and "investments at fair values through profit and loss". An investment is classified in this category if it is acquired with the objective of being sold at short term or if the adoption of the valorisation through this method significantly eliminates or reduces an accounting difference. The financial derivatives instruments are also classified as held for trading, except if they are designated for hedge accounting effects. The assets within this category are classified as current assets in case they are held for trading or if it is expected that they will be realized within a period inferior to 12 months starting from the Statement of financial position date.
At December 31, 2016 and 2015, Toyota Caetano did not have financial instruments registered in the items "investments held for trading" and "investments at fair values through profit and loss".
These are financial non-derivative assets with defined or determinable payment dates, have defined maturity or determined payment dates and there is an intention and capacity to maintain them until the maturity date. These investments are classified as non-current Assets, unless they mature within 12 months as of the statement of financial position date.
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, 2016 and 2015, 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.
Accounts receivable and Other debtors 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.
Accounts receivable which bear interests (namely those related to partial payments of vehicles sales) are recorded by their total amount, and the part related to interests is recorded in liabilities as a deferred income and recognized in the income statement in accordance with its maturity.
Evidence from the existence of impairment on accounts receivable exists when:
the counterparty presents significant financial difficulties;
there are significant delay on principal payments; and
it is probable that the debtor will enter in a liquidation or financial restructuring process.
The Company uses historic information as well as information provided by the Credit and Legal Department to estimate impairment amounts.
Loans are recorded as liabilities at their nominal value net of up-front expenses which are directly related to the issuance of those instruments. Financial expenses are calculated based on the effective interest rate and are recorded in the statement of profit and loss on an accrual basis.
iv) Accounts payable and Other creditors
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.
v) Derivative financial instruments
The Company uses derivative financial instruments to cover risks of financial investments. Derivative financial instruments used by the Company (mainly interest rate swaps and currency forwards), have the specific aim of interest rate risk coverage and exchange rate risk on future transactions in foreign currency.
Derivatives are initially recognized at their cost at the date on which they are contracted, being subsequently measured at fair value. The method used to recognize fair value changes depends on the designation (or not) of derivatives for hedge accounting purposes and on the nature of the hedged item.
At December 31, 2016 and 2015, Toyota Caetano only have derivative financial instruments, for which the company as not applied hedge accounting derivatives
The derivative financial instruments, for which the company as not applied hedge accounting, although contracted for economic hedging purposes, are initially recorded by the cost, which corresponds to its fair value, if any, and subsequently re-evaluated by its fair value, which variations, calculated through the evaluations made by the banks with which the Company makes the respective contracts, directly affect the items of the finance results of the consolidated income statement.
The fair value of derivatives acquired is presented in the Note 25.
vi) Cash and cash equivalents
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.
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 recognised, net of the fair value of net assets within the pension fund (Note 23). The Entity recognized remeasurement in "Other reserves"
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, Saltano, 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 companies.
Revenue is recognized net of taxes and commercial discounts, by the fair value of the amount received or to be received, knowing that:
-The revenue from sales is recognized in the income statement when the significant part of risks and benefits related with the possession of assets is transferred to the acquirer, it is probable the future economic benefits will flow to the entity and these benefits can be measured reliably. -The revenue from services rendered is recognized according to the stage of completion of the transaction at the balance sheet date.
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".
In each year the Group identifies the most adequate business and geographic segments.
Information related to the identified operating segments is included in Note 27.
Assets and liabilities expressed in foreign currencies are converted to Euros at the prevailing exchange rates published by "Banco de Portugal". Favorable and unfavorable 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.
(Amounts in Euros)
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, 2016 and 2015 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 8);
d)Discharge of the fair value of derivative financial instruments; and
e)Clearance of responsibilities with Pension complements (Note 23).
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 main significant judgments and zestimations 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 minimise 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.
i)Exchange rate risk
(Amounts in Euros)
As a geographically diversified Group, with subsidiaries located in Cape Verde, 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 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.
Toyota Caetano has been using financial derivatives to hedge, at least partially, its exposure to exchange rate variations.
ii)Interest rate risk
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.
iii)Liquidity 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 programmes, and other types of financial operations with relationship Banks, ensuring the right balance between satisfactory liquidity levels and adequate commitment fees.
iv)Credit risk
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 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, 2016 can be summarize as follow:
| Bank Deposits Rating | Rating Agencies | Bank Deposits |
|---|---|---|
| A1 | Moody's | 481.138 |
| A3 | Moody's | 156.304 |
| B1 | Moody's | 5.865.531 |
| B3 | Moody's | 742.008 |
| Ba1 | Moody's | 18.365 |
| Ba3 | Moody's | 397.577 |
| Baa1 | Moody's | 9.019 |
| Baa3 | Moody's | 123.785 |
| Caa1 | Moody's | 412.570 |
| Others without rating | 363.652 | |
| Total | 8.569.948 |
The ratings presented correspond to ratings assigned by the rating agency Moody's.
As mentioned in Note 4, during the year ended as of December 31, 2016, there were no changes in accounting policies and no material mistakes related with previous periods were identified.
Toyota Caetano adopted in 2016 the of International Financial Reporting Standards - IFRS, applying the "IFRS 1 - First-time Adoption of International Financial Reporting Standards", being the transition date for the presentation of these financial statements January 1, 2015.
The financial statements of the Company, till 31 December 2015 were prepared in accordance with the accounting standards NCRF ("Normas Contabilísticas e de Relato Financeiro") approved by the Portuguese Law nº 158/2009 of July 13.
In accordance with IFRS 1, the Company will use the same accounting policies in its statement of opening financial position in accordance with IFRS and in all periods presented in its first financial statements. The main changes result of adopting the international standards instead of the Portuguese standards were as follows:
The detail of the adjustments registered in equity as of 1 January 2015 and 31 December 2015, in net profit of the year ended at 31 December, 2015 for the purposes of the convertion to IFRS is as follow:
| Value | |
|---|---|
| Equity SNC in 1 january 2015 | 128.897.845 |
| Transition adjustaments | |
| Government Grants FEDER | -288.688 |
| Government Grants | -112.494 |
| GoodWill AutoPartner SGPS | -893.190 |
| -1.294.372 | |
| Equity IFRS in 1 january 2015 | 127.603.473 |
| Equity in transition date 31 december 2015 | |
| Value | |
| Equity SNC in 31 december 2015 Transition adjustaments |
129.294.173 |
| Government Grants FEDER | -288.688 |
| Government Grants | -106.058 |
| GoodWill AutoPartner SGPS | -893.190 |
| -1.287.936 | |
| Equity IFRS in 31 december 2015 | 128.006.237 |
| Net Income in 31 in december 2015 | |
| Valor | |
| Net Income SNC in 2015 | 6.474.875 |
| Transition adjustaments | |
| 0 | |
| Net Income IFRS in 2015 | 6.474.875 |
The effect on the financial statement as of January 1, 2015 and December 31, 2015 and in the statement of income and other comprehensive income for the year ended December 31, 2015, related to the conversion of financial statements prepared in accordance with NCRF to the financial statements restated in accordance with IFRS, is as follows:
| ASSETS | SNC | Transition adjustaments |
IFRS |
|---|---|---|---|
| NON CURRENT ASSETS | |||
| Intangible Assets | |||
| Tangible Fixed Assets | 19.498.505 | 19.498.505 | |
| Investment Properties | 15.150.587 | 15.150.587 | |
| Goodwill | 611.997 | 611.997 | |
| Financial Investments - Equity Method | 40.885.543 | -893.190 | 39.992.353 |
| Other Financial Investments | 59.504 | 59.504 | |
| Deferred Tax Assets | 2.354.141 | 2.354.141 | |
| Total Non Current Assets | 78.560.277 | -893.190 | 77.667.087 |
| CURRENT ASSETS | |||
| Inventories | 48.084.649 | 48.084.649 | |
| Accounts Receivable | 86.526.015 | 86.526.015 | |
| Down Payments | 836.231 | -836.231 | 0 |
| Other Accounts Receivable | 1.767.260 | 1.767.260 | |
| Accrued Taxes | 929.440 | 929.440 | |
| Shareholders | 685.529 | -685.529 | 0 |
| Other Financial Investments | 1.296.800 | -60.766 | 1.236.034 |
| Other Current Assets | 3.432.799 | 3.432.799 | |
| Deferrals | 184.734 | -184.734 | 0 |
| Cash And Cash Equivalents | 9.104.055 | 9.104.055 | |
| Total Current Assets | 151.080.252 | 0 | 151.080.252 |
| TOTAL ASSETS | 229.640.528 | -893.190 | 228.747.338 |
| Transition | IFRS | |
|---|---|---|
| adjustaments | ||
| 35.000.000 | 35.000.000 | |
| 7.498.903 | 7.498.903 | |
| 5.698.991 | -893.190 | 4.805.801 |
| 6.195.184 | 6.195.184 | |
| 70.418.653 | -288.688 | 70.129.965 |
| 219.893 | 219.893 | |
| 112.494 | -112.494 | 0 |
| 3.753.725 | 3.753.725 | |
| 128.897.845 | -1.294.372 | 127.603.473 |
| 20.113.488 | 20.113.488 | |
| 3.200.000 | 3.200.000 | |
| 363.957 | -116.472 | 247.485 |
| 23.677.445 | -116.472 | 23.560.973 |
| 26.716.616 | ||
| 26.404.409 | ||
| 0 | ||
| 253.618 | ||
| 9.708.056 | ||
| 0 | ||
| 14.350.432 | ||
| 0 | ||
| 0 | ||
| 149.762 | ||
| 77.065.238 | 517.655 | 77.582.893 |
| 228.747.338 | ||
| SNC 26.716.616 26.404.409 224.574 9.708.056 10.511 7.873.022 5.978.288 149.762 229.640.528 |
-224.574 253.618 -10.511 14.350.432 -7.873.022 -5.978.288 -893.190 |
| Transition | |||
|---|---|---|---|
| ASSETS | SNC | adjustaments | IFRS |
| NON CURRENT ASSETS | |||
| Intangible Assets | 942.316 | 942.316 | |
| Tangible Fixed Assets | 27.501.209 | 27.501.209 | |
| Investment Properties | 15.584.625 | 15.584.625 | |
| Goodwill | 611.997 | 611.997 | |
| Financial Investments - Equity Method | 39.916.532 | -893.190 | 39.023.342 |
| Other Financial Investments | 59.504 | 59.504 | |
| Deferred Tax Assets | 1.586.483 | 1.586.483 | |
| Total Non Current Assets | 86.202.665 | -893.190 | 85.309.475 |
| CURRENT ASSETS | |||
| Inventories | 58.717.810 | 58.717.810 | |
| Accounts Receivable | 87.035.232 | 87.035.232 | |
| Down Payments | 482.675 | -482.675 | 0 |
| Other Accounts Receivable | 0 | 1.287.316 | 1.287.316 |
| Accrued Taxes | 971.895 | 971.895 | |
| Shareholders | 804.641 | -804.641 | 0 |
| Other Financial Investments | 3.432.799 | 3.432.799 | |
| Other Current Assets | 387.157 | 565.688 | 952.845 |
| Deferrals | 565.688 | -565.688 | 0 |
| Cash And Cash Equivalents | 8.024.428 | 8.024.428 | |
| Total Current Assets | 160.422.324 | 0 | 160.422.324 |
| TOTAL ASSETS | 246.624.989 | -893.190 | 245.731.799 |
| EQUITY AND LIABILITIES | SNC | Transition | IFRS |
|---|---|---|---|
| adjustaments | |||
| LIABILITIES | |||
| Share Capital | 35.000.000 | 35.000.000 | |
| Legal Reserve | 7.498.903 | 7.498.903 | |
| Adjustments to Financial Investments | 5.190.943 | -893.190 | 4.297.753 |
| Other Reserves | 68.828.210 | -288.688 | 68.539.522 |
| Revaluation Reserve | 6.195.184 | 6.195.184 | |
| Other Equity Movements - Gap Transition | 106.058 | -106.058 | 0 |
| Net Income | 6.474.875 | 6.474.875 | |
| Total equity | 129.294.173 | -1.287.936 | 128.006.237 |
| LIABILITIES | |||
| NON CORRENT LIABILITIES | |||
| Loans | 24.128.967 | 24.128.967 | |
| Post-Retirement Obligations | 3.534.000 | 3.534.000 | |
| Deferred Tax Liabilities | 329.109 | -114.761 | 214.348 |
| Total non corrent liabilities | 27.992.076 | -114.761 | 27.877.315 |
| CORRENT LIABILITIES | |||
| Loans Accounts Payable |
36.450.473 31.698.659 |
36.450.473 31.698.659 |
|
| Down Payments | 383.786 | -383.786 | 0 |
| Other Accounts Payable | 0 | 424.319 | 424.319 |
| Accrued Taxes | 8.250.374 | 8.250.374 | |
| Shareholders | 11.998 | -11.998 | 0 |
| Other Current Liabilities | 0 | 12.929.890 | 12.929.890 |
| Other Accounts Payable | 6.601.069 | -6.601.069 | 0 |
| Deferrals | 5.847.849 | -5.847.849 | 0 |
| Derivative Financial Instruments - Swapp | 94.532 | 94.532 | |
| Total corrent liabilities | 89.338.740 | 509.507 | 89.848.247 |
| TOTAL EQUITY AND LIABILITIES | 246.624.989 | -893.190 | 245.731.799 |
| SNC | Transition adjustaments |
IFRS | |
|---|---|---|---|
| Operational Gains | |||
| Sales | 256.808.132 | 256.808.132 | |
| Operating Subsidies | 2.349.144 | -2.349.144 | 0 |
| Other Operacional Gains | 37.064.386 | 2.349.144 | 39.413.530 |
| Variation in Production | -3.804.553 | -3.804.553 | |
| Total Operational Gains | 292.417.109 | 0 | 292.417.109 |
| Operational Expenses | |||
| Cost of Goods Sold and Raw Material C | 212.713.834 | 212.713.834 | |
| External Supplies and Services | 38.677.933 | 38.677.933 | |
| Payrol Expenses | 15.524.042 | 15.524.042 | |
| Depreciations | 7.579.064 | 7.579.064 | |
| Impairment | -372.123 | -372.123 | |
| Increases / Reductions of Fair Value | -55.231 | 55.231 | 0 |
| Other Operational Expenses | 9.757.147 | 9.757.147 | |
| Total Operacional Expenses | 283.824.666 | 55.231 | 283.879.897 |
| Operational Income | 8.592.443 | -55.231 | 8.537.212 |
| Financial Income | |||
| Gains in Financial Investmets - Equity Method | 1.142.682 | 1.142.682 | |
| Interest and other financial costs | -2.095.502 | -2.095.502 | |
| Other Financial gains | 202.728 | 55.231 | 257.959 |
| -750.092 | 55.231 | -694.861 | |
| Income before Taxes | 7.842.351 | 7.842.351 | |
| Income Tax for the Year | -1.367.476 | -1.367.476 | |
| Net Income | 6.474.875 | 0 | 6.474.875 |
STATEMENT OF THE COMPREHENSIVE INCOME IN 31 DECEMBER 2015
| SNC | Transition adjustaments |
IFRS | |
|---|---|---|---|
| Net Income | 6.474.875 | 6.474.875 | |
| Remeasurement (Actuarial losses gross of tax) | -700.000 | -700.000 | |
| Deferred Tax of Acturial Losses | 157.500 | 157.500 | |
| Other Changes in Equity | -979.610 | -979.610 | |
| Consolidated comprehensive income | 4.952.765 | 4.952.765 |
As of 31 December 2016 and 31 December 2015 cash and cash equivalents detail was the following:
| ITEMS | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Money Bank Deposits at Immediate Disposal |
85.032 8.569.948 |
81.274 7.943.154 |
| Cash and Cash Equivalents | 8.654.980 | 8.024.428 |
During 2016 and 2015, the movement in tangible fixed assets as well as in the accumulated depreciation were as follows:
| 2016 | Land | Buildings and Other Constructions |
Machirnery and Equipments |
Vehicles | Administrative Equipment |
Other Fixed Assets |
Construction in Progress |
Total |
|---|---|---|---|---|---|---|---|---|
| Gross | ||||||||
| Final Balance 31/12/2015 | 3.946.027 | 32.482.677 | 52.089.751 | 42.176.138 | 6.067.444 | 2.909.440 | 397.459 | 140.068.937 |
| Increases | 111.822 | 10.328.384 | 64.435 | 33.035 | 9.400 | 10.547.075 | ||
| Disposals | -5.924.035 | -5.924.035 | ||||||
| Transfers and Write offs | 50.019 | 265.130 | -397.459 | -82.310 | ||||
| Final Balance 31/12/2016 | 3.946.027 | 32.532.697 | 52.466.703 | 46.580.487 | 6.131.880 | 2.942.475 | 9.400 | 144.609.667 |
| Depreciations | ||||||||
| Final Balance 31/12/2015 | 29.156.443 | 48.578.059 | 25.976.858 | 6.016.608 | 2.839.761 | 112.567.729 | ||
| Increases | 431.218 | 941.928 | 5.902.436 | 39.391 | 24.839 | 7.339.812 | ||
| Disposals, Transfers and Write offs | -4.339.255 | -4.339.255 | ||||||
| Final Balance 31/12/2016 | 0 | 29.587.661 | 49.519.987 | 27.540.038 | 6.055.999 | 2.864.599 | 0 | 115.568.285 |
| Net Value | 3.946.027 | 2.945.035 | 2.946.716 | 19.040.449 | 75.880 | 77.875 | 9.400 | 29.041.382 |
| 2015 | Land | Buildings and Other Constructions |
Machirnery and Equipments |
Vehicles | Administrative Equipment |
Other Fixed Assets |
Construction in Progress |
Total |
|---|---|---|---|---|---|---|---|---|
| Gross | ||||||||
| Final Balance 31/12/2014 | 3.908.048 | 31.403.771 | 50.826.485 | 35.140.756 | 6.042.756 | 2.903.102 | 69.000 | 130.293.919 |
| Increases | 37.978 | 1.219.037 | 2.187.423 | 12.079.581 | 24.688 | 18.721 | 328.459 | 15.895.889 |
| Disposals | -24.166 | -5.044.199 | -1.609 | -5.069.974 | ||||
| Transfers and Write offs | -140.131 | -899.991 | -10.775 | -1.050.897 | ||||
| Final Balance 31/12/2015 | 3.946.027 | 32.482.677 | 52.089.751 | 42.176.138 | 6.067.444 | 2.909.440 | 397.459 | 140.068.937 |
| Depreciations | ||||||||
| Final Balance 31/12/2014 | ||||||||
| Increases | 28.826.155 | 48.384.892 | 24.788.935 | 5.972.853 | 2.822.580 | 110.795.415 | ||
| Disposals, Transfers and Write offs | 455.223 | 1.047.563 | 5.069.271 | 43.754 | 29.564 | 6.645.376 | ||
| -124.935 | -854.395 | -3.881.348 | -12.383 | -4.873.062 | ||||
| Final Balance 31/12/2015 | 29.156.443 | 48.578.059 | 25.976.858 | 6.016.608 | 2.839.761 | 112.567.729 | ||
| Net Value | 3.946.027 | 3.326.234 | 3.511.692 | 16.199.281 | 50.836 | 69.679 | 397.459 | 27.501.209 |
The increases recorded in the year ended at 31 December, 2015 in Buildings and Machinery and Equipment are due mainly to investments in Ovar Plant for the production of the new Land Cruiser model series 70 (LC70) for the South African market.
As at 31 December 2016 and 2015 the tangible fixed assets used under finance lease are resented as follows:
| Industrial equipment | Acquisition value | Depreciations | Current values |
|---|---|---|---|
| 2016 | 26.322.631 | 10.040.184 | 16.282.447 |
| 2015 | 17.023.229 | 4.547.283 | 12.475.946 |
(Amounts in Euros)
As at 31 December 2016 and 31 of December of 2015, 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 3.400.831 Euros in the period ended in 31 December 2016 (3.275.409 Euros in 31 December 2015) (Note 30).
In accordance with external appraisals done in the end of 2012, 2014, 2015 and 2016 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 56,9 million Euros, approximately ( 61,9 million Euros in 2015).
The Board of Directors is convinced that there is no significant change in the fair value of those investment properties in 2016 believing that are valid the appraisals done.
| Dec-16 | Dec-15 | |||||
|---|---|---|---|---|---|---|
| Buildings | Place | Carrying Amount |
Fair value | Appraisal | Carrying Amount |
Fair value |
| Industrial Facilities | V.N. Gaia | 3.236.940 | 8.692.000 | External | 3.454.289 | 11.448.000 |
| Industrial Facilities | V.N. Gaia | 261.219 | 788.000 | Internal | 273.052 | 788.000 |
| Industrial Facilities | Carregado | 5.086.938 | 19.218.000 | External | 5.135.484 | 21.518.000 |
| Industrial Warehouse | V.N. Gaia | 942.873 | 6.077.000 | External | 1.044.637 | 6.003.000 |
| Commercial Facilities | Lisboa | 1.170.590 | 1.247.000 | Internal | 1.199.980 | 1.247.000 |
| Land | Leiria | 355.125 | 797.000 | Internal | 355.125 | 797.000 |
| Commercial Facilities | Cascais | 116.985 | 834.000 | Internal | 125.331 | 834.000 |
| Cascais | 264.592 | 950.000 | Internal | 277.980 | 950.000 | |
| Prior Velho | 2.943.103 | 15.550.000 | Internal | 2.943.103 | 15.550.000 | |
| Loures | 197.073 | 849.000 | Internal | 201.122 | 849.000 | |
| Vila Franca Xira | 436.378 | 1.648.000 | Internal | 458.457 | 1.648.000 | |
| Benavente | 110.868 | 302.000 | Internal | 116.065 | 302.000 | |
| 15.122.686 | 56.952.000 | 15.584.625 | 61.934.000 |
The detail of investment properties in 2016 and 2015:
During 2016 and 2015, the movements occurred in the investment properties as well as in the accumulated depreciation were as follows:
| 2016 | Land | Buildings and Other Constructions |
Total | |
|---|---|---|---|---|
| Gross | ||||
| Final Balance 31/12/2015 | 9.782.682 | 32.006.384 | 41.789.066 | |
| Increases | ||||
| Disposals | ||||
| Transfers and Write offs | ||||
| Final Balance 31/12/2016 | 9.782.682 | 32.006.384 | 41.789.066 | |
| Depreciations Final Balance 31/12/2015 Increases Disposals, Transfers and Write offs |
26.204.441 461.939 |
26.204.441 461.939 |
||
| Final Balance 31/12/2016 | 26.666.380 | 26.666.380 | ||
| Net Value | 9.782.682 | 5.340.004 | 15.122.686 | |
| Buildings and | |||
|---|---|---|---|
| 2015 | Land | Other | Total |
| Constructions | |||
| Gross | |||
| Final Balance 31/12/2014 | 9.850.956 | 32.071.454 | 41.922.410 |
| Increases | 2.045.360 | 2.045.360 | |
| Disposals | -68.274 | -290.724 | -358.998 |
| Transfers and Write offs | -1.819.706 | -1.819.706 | |
| Final Balance 31/12/2015 | 9.782.682 | 32.006.384 | 41.789.066 |
| Depreciations | |||
| Final Balance 31/12/2014 | 26.771.822 | 26.771.822 | |
| Increases | 462.530 | 462.530 | |
| Disposals, Transfers and Write offs | -1.029.911 | -1.029.911 | |
| Final Balance 31/12/2015 | 26.204.441 | 26.204.441 | |
| Net Value | 9.782.682 | 5.801.943 | 15.584.625 |
The movements in the period ended at 31 December, 2015 are due to the acquisition of a construction called Pavilion B located in Vila Nova de Gaia facilities and the write off of our properties located in the so-called Carregado Industrial Complex due to the incident that occurred on March 3rd, 2015, caused by a fire. During the period occurs also the disposal of the industrial building located in Pedroso, Vila Nova de Gaia, with matrix Article U-12942.
.
During 2016, didn't occurr any changes to the Goodwill value.
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.
Under SNC 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 2016, 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% |
| Discount Rate (2) | 9,83% |
(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, 2016, the net book value of assets, including goodwill (612 thousand of Euros), does not exceed its recoverable amount (16 millions 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 2016 and 2015, the movements in intangible assets were as follows:
| 2016 | Research & Develepment |
Software | Total |
|---|---|---|---|
| Expenses | |||
| Gross | |||
| Final Balance 31/12/2015 | 1.394.907 | 1.010.272 | 2.405.179 |
| Increases | 154.647 | 154.647 | |
| Disposals, Transfers and Write offs | 82.310 | 82.310 | |
| Final Balance 31/12/2016 | 1.477.217 | 1.164.919 | 2.642.136 |
| Depreciations | |||
| Final Balance 31/12/2015 | |||
| Increases | 464.969 | 997.894 | 1.462.863 |
| Disposals, Transfers and Write offs | 492.406 | 57.738 | 550.144 |
| Final Balance 31/12/2016 | 957.375 | 1.055.632 | 2.013.007 |
| Net Value | 519.842 | 109.287 | 629.129 |
| Research & | |||
|---|---|---|---|
| 2015 | Develepment | Software | Total |
| Expenses | |||
| Gross | |||
| Final Balance 31/12/2014 | 0 | 991.705 | 991.705 |
| Increases | 1.394.907 | 18.567 | 1.413.474 |
| Disposals | |||
| Transfers and Write offs | |||
| Final Balance 31/12/2015 | 1.394.907 | 1.010.272 | 2.405.179 |
| Depreciations | |||
| Final Balance 31/12/2014 | 0 | 991.705 | 991.705 |
| Increases | 464.969 | 6.189 | 471.158 |
| Disposals, Transfers and Write offs | |||
| Final Balance 31/12/2015 | 464.969 | 997.894 | 1.462.863 |
| Net Value | 929.938 | 12.378 | 942.316 |
The increases recorded in the year ended at 31 December, 2015 are due to technical development expenses associated with production in Ovar factory of the new Land Cruiser model series 70 (LC70) for export market.
In 31 December 2016 and 31 December 2015, the financial investments were as follows:
| MEP | |||||
|---|---|---|---|---|---|
| Caetano Auto Caetano Auto CV | Saltano | Adjustments | Total | ||
| 1 january 2015 | 16.559.325 | 4.602.230 19.840.172 | -1.009.374 39.992.353 | ||
| Acquisitions | 0 | ||||
| Gains/Losses | 45.942 | 124.139 | 142.442 | 312.522 | |
| Other Capital Movements | -460.136 | -495.188 | -24.285 | -979.610 | |
| Disposal | 0 | ||||
| Others (atuarial losses) | -648.200 | -751.800 | 1.116.350 | -283.650 | |
| Others | -18.273 | -18.273 | |||
| Dividends received | 0 | ||||
| 31 December 2015 | 15.496.930 | 4.726.369 18.735.625 | 64.418 39.023.342 | ||
| Acquisitions | 171 | 171 | |||
| Gains/Losses | 384.551 | 107.472 | 672.913 | -257.280 | 907.656 |
| Other Capital Movements | 1.837 | 145 | 2 | 17.694 | 19.678 |
| Disposal | 0 | ||||
| Others (atuarial losses) | -872.868 | -981.938 | 725.024 | -1.129.782 | |
| Dividends received | -1.624.908 | -1.624.908 | |||
| 31 December 2016 | 15.010.621 | 3.209.077 18.426.602 | 549.856 37.196.156 |
The gains and losses from group companies shown in Income Statement (626.455 Euros) include:
| Gains in financial investments - Equity method | 907.656 |
|---|---|
| Intercompany margin deferral (Note 22) | -281.201 |
| 626.455 |
Subsidiaries' financial position and net income can be summarized as follows:
| Caetano Auto | Caetano Auto CV | Saltano | |||||
|---|---|---|---|---|---|---|---|
| 31/Dec/16 | 31/Dec/15 | 31/Dec/16 | 31/Dec/15 | 31/Dec/16 | 31/Dec/15 | ||
| Equity | 32.416.147 | 33.470.691 | 3.950.120 | 5.817.785 | 18.430.288 | 18.739.373 | |
| Net Income | 830.457 | 99.226 | 132.290 | 152.805 | 673.048 | 142.470 | |
| % Direct | 46,31% | 46,30% | 81,24% | 81,24% | 99,98% | 99,98% | |
| % Indirect | 98,41% | 98,40% | 81,24% | 81,24% | 99,98% | 99,98% |
| 31-12-2016 | ||||||
|---|---|---|---|---|---|---|
| Caetano Auto | Caetano Auto CV | Saltano | ||||
| Assets | ||||||
| Current | 66.644.229 | 8.973.708 | 2.049.100 | |||
| Non Current | 47.781.219 | 1.442.634 | 19.961.574 | |||
| Liabilities | ||||||
| Current | 74.398.428 | 6.383.839 | 3.580.387 | |||
| Non Current | 7.610.873 | 82383 | ||||
| Equity | 32.416.147 | 3.950.120 | 18.430.288 | |||
| Sales | 185.940.532 | 10.757.901 | ||||
| Operational Income | 976.265 | 225.194 | 671.997 | |||
| Financial Income | -316.697 | -21.983 | ||||
| Net Income | 830.457 | 132.290 | 673.048 |
| 31-12-2015 | |||||
|---|---|---|---|---|---|
| Saltano | |||||
| Assets | |||||
| Current | 47.146.673 | 6.142.745 | 2.054.105 | ||
| Non Current | 49.302.852 | 1.493.829 | 20.266.706 | ||
| Liabilities | |||||
| Current | 56.929.407 | 1.818.789 | 3.581.438 | ||
| Non Current | 6.049.428 | ||||
| Equity | 33.470.691 | 5.817.785 | 18.739.373 | ||
| Sales | 186.583.747 | 8.785.747 | |||
| Operational Income | 304.459 | 214.311 | 141.874 | ||
| Financial Income | -186.529 | -9.200 | |||
| Net Income | 99.226 | 152.805 | 142.470 |
During the period ended in December 31, 2016 and 2015 the movements in Other Financial Assets were as follows:
| 31/DEC/2016 | 31/DEC/2015 | |
|---|---|---|
| Other Financial Assets | ||
| Balance at 01/01/2015 | 3.492.302 | 3.492.302 |
| Aquisitions during the period | ||
| Other Regularizations | ||
| Balance at 31/12/2016 | 3.492.302 | 3.492.302 |
Other Financial Assets can be summarized as follows:
(Amounts in Euros)
| Other Financial Assets | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Non current Investments in small private companies |
59.504 | 59.504 |
| Current Loan to group copmanies (Note 34) |
3.432.799 | 3.432.799 |
| 3.492.302 | 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.
As of 31 December 2016 and 31 December 2015, inventories detail was the following:
| ITEMS | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Goods | 40.511.618 | 45.952.257 |
| Raw materials | 9.307.008 | 10.080.953 |
| Finished and Intermediate goods | 1.466.863 | 1.613.906 |
| Work in Progress | 849.960 | 1.070.695 |
| 52.135.449 | 58.717.810 |
The cost of goods sold and consumed as of 31 December 2016 and 31 December 2015 was as follows:
| 31/DEC/2016 | 31/DEC/2015 | |||||
|---|---|---|---|---|---|---|
| ITEMS | Goods | Raw materials | Total | Goods | Raw materials | Total |
| Opening Balances | 45.952.257 | 10.080.953 | 56.033.209 | 38.034.011 | 3.938.945 | 41.972.957 |
| Purchases | 194.777.814 | 30.169.577 | 224.947.390 | 189.815.042 | 36.959.044 | 226.774.086 |
| Closing Balances | 40.511.618 | 9.307.008 | 49.818.626 | 45.952.257 | 10.080.953 | 56.033.209 |
| Total | 200.218.452 | 30.943.521 | 231.161.973 | 181.896.797 | 30.817.037 | 212.713.834 |
The variation of production as of 31 December 2016 and 31 December 2015 was as follows:
| 31/DEC/2016 | 31/DEC/2015 | |
|---|---|---|
| ITEMS | Finished and Intermediate goods Work in Progrss |
|
| Opening Balances Closing Balances |
2.316.823 2.684.601 |
2.684.601 6.489.154 |
| Total | -367.778 | -3.804.553 |
As of 31 December 2016 and 31 December 2015 Accounts Receivable detail was the following:
| ITEMS | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Accounts Receivable Doubtful Accounts Lost of impairments (Note 24) |
101.938.955 5.723.947 -5.702.310 101.960.592 |
86.862.871 5.940.234 -5.767.873 87.035.232 |
| 2016 | < 60 days | 60-90 days | 90-120 days | + 120 days | Total |
|---|---|---|---|---|---|
| Accounts Receivable | 67.082.930 | 9.515.057 | 5.223.629 | 20.117.339 | 101.938.955 |
| 2015 | < 60 days | 60-90 days | 90-120 days | + 120 days | Total |
| Accounts Receivable | 64.265.606 | 8.607.986 | 951.915 | 13.037.364 | 86.862.871 |
| 2016 | < 60 days | 60-90 days | 90-120 days | + 120 days | Total |
|---|---|---|---|---|---|
| Accounts Receivable | 11.596.985 | 1.001.415 | 400.747 | 12.345.800 | 25.344.947 |
| 2016 | < 60 days | 60-90 days | 90-120 days | + 120 days | Total |
| Accounts Receivable | 11.583.715 | 1.050.742 | 408.779 | 12.220.861 | 25.264.097 |
| 2016 | < 60 days | 60-90 days | 90-120 days | + 120 days | Total |
|---|---|---|---|---|---|
| Doubtful Accounts | 7.173 | 5.716.773 | 5.723.946 |
| 2015 | < 60 days | 60-90 days | 90-120 days | + 120 days | Total |
|---|---|---|---|---|---|
| Doubtful Accounts | 5.940.234 | 5.940.234 |
As of 31 December 2016 and 31 December 2015 Other Credits detail was the following:
| Other Accounts Receivable | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Current | ||
| Down Payments | 392.062 | 482.675 |
| Shareholders (Note 34) | 896.210 | 804.641 |
| 1.288.272 | 1.287.316 |
Other Current Assets detail at 31 December 2016 and 2015 is as follows:
| ITEMS | 31/DEC/2016 | 31/DEC/2015 | |
|---|---|---|---|
| Recover of Sales Campaigns Recover Logistics Renting Others |
Other Accounts Payable | 932.100 40.523 14.585 24.370 1.011.579 |
335.530 4.241 47.385 387.157 |
| Insurance Interest from Commercial Paper Programs Others |
Assets Deferral | 106.937 75.058 260.457 442.453 1.454.032 |
91.734 50.144 423.810 565.688 952.845 |
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 2013 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 espenses 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 ncome tax of 3%, exceeding 7,5 Million Euros 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, Saltano, and Caetano Renting) in order to determine the group income tax.
As of 31 December 2016 and 31 December 2015 Income tax detail was the following:
| 31/DEC/2016 | 31/DEC/2015 | |
|---|---|---|
| Corporate Income Tax for the Year (estimate) | -1.311.145 | -597.057 |
| Corporate Income Tax(payments in advance) for the Year | 728.060 | 697.478 |
| Corporate Income Tax for the Year (RETGS) | 635.401 | 871.474 |
| Total | 52.316 | 971.895 |
The current tax can be decomposed as follows:
| 31/DEC/2016 | 31/DEC/2015 | |
|---|---|---|
| Income taxes in year Deferred income taxes |
1.311.145 428.927 |
597.057 770.419 |
| 1.740.072 | 1.367.476 |
The reconciliation of the earnings before taxes of the years ended at 31 December, 2016 and 2015 can be analyzed as follows:
| DEC/16 | DEC/15 | |
|---|---|---|
| Income Before Taxes | 7.690.828 | 7.842.351 |
| Equity Method (art.º18,nº18) | -626.455 | -1.142.682 |
| Reversion of impairment losses taxed | -383.915 | |
| Accounting Capital Gains | -1.299.761 | -3.845.010 |
| Derivative Fiancial Instruments (art.º 49) | -66.107 | -55.231 |
| Fiscal Benefits | -76.668 | -34.576 |
| Income not subject to taxation | -2.068.991 | -5.461.413 |
| Equity Method (art.º18,nº18) | ||
| Non deductible depretion and amortization (art.º 34, nº1) | 114.641 | 113.009 |
| 50% fiscal Capital Gains | 649.881 | 1.922.505 |
| Others | 58.806 | 387.633 |
| Expenses not subject to taxation | 823.328 | 2.423.147 |
| Fiscal income | 6.445.165 | 4.804.085 |
| Tax expense at rate aplicable in Portugal 21% | 1.353.485 | 1.008.858 |
| Local tax 1,5% | 96.677 | 72.061 |
| State tax | 148.355 | 99.123 |
| National tax expense ( Taxe at rate aplicable in Portugal (22,5%)) | 1.598.517 | 1.180.042 |
| Deferred tax | 14.874 | 64.219 |
| Addicional Income tax | 126.681 | 123.216 |
| Effective Tax Expenses | 1.740.072 | 1.367.476 |
Amounts and nature of the assets and liabilities for deferred taxes recorded in the financial statements as of 31 December 2016 and 2015 can be analyzed as follows:
| 2016 | Inicial | Reflected in income statement |
Reflected in equity | Final | |||
|---|---|---|---|---|---|---|---|
| Balance | Decrease | Increase | Decrease | Increase | Balance | ||
| Deferred Tax Assets | |||||||
| Defined Benefit Plan Liabilities | 775.150 | 354.245 | 1.129.395 | ||||
| Fiscal Losses (RETGS) | 502.621 | -414.053 | 88.569 | ||||
| Valluation of financial instruments | 21.270 | -14.874 | 6.396 | ||||
| Provisions | 287.442 | 287.442 | |||||
| Others | |||||||
| 1.586.482 | -428.927 | 354.245 | 1.511.801 | ||||
| 2015 | Inicial | Reflected in income statement |
Reflected in equity | Final | |||
| Balance | Decrease | Increase | Decrease | Increase | Balance | ||
| Deferred Tax Assets | |||||||
| Defined Benefit Plan Liabilities | 700.000 | 75.150 | 775.150 | ||||
| Fiscal Losses (RETGS) | 1.208.822 | -706.201 | 502.622 | ||||
| Valluation of financial instruments | 33.697 | -12.427 | 21.270 | ||||
| Provisions | 372.371 | -84.929 | 287.442 | ||||
| Others | |||||||
| 2.314.886 | -803.555 | 75.150 | 1.586.483 |
Deferred Tax Liabilities
| 2016 | Reflected in income Inicial statement |
Reflected in equity | Final | |||
|---|---|---|---|---|---|---|
| Balance | Decrease | Increase | Decrease | Increase | Balance | |
| Deferred Tax Liabilities | ||||||
| 40% of depreciation as a result of legal | 48.576 | 48.576 | ||||
| Effect of the reinvestments of the gains infixed assets sales Others |
165.772 | 165.772 | ||||
| 214.348 | 214.348 | |||||
| 2015 | Inicial | Reflected in income statement |
Reflected in equity | Final | ||
| Balance | Decrease | Increase | Decrease | Increase | Balance | |
| Deferred Tax Liabilities | ||||||
| 40% of depreciation as a result of legal | 52.148 | -3.572 | 48.576 | |||
| Effect of the reinvestments of the gains infixed assets sales |
190.200 | -24.428 | 165.772 | |||
| Others | 5.136 | -5.136 | ||||
| 247.485 | -33.137 | 214.348 |
Under current legislation in Portugal the carry-forward of tax losses for the years still outstanding, is as follows:
i) Tax losses generated in 2012 and 2013: 5 years
ii) Tax losses generated in 2014 and 2016: 12 years
At December 31, 2016 and 2015 (date of the last tax returns filed), the tax losses carried forward in respect of which deferred tax assets were recorded were as follows:
| Fiscal Losses | 31/DEC/2016 | 31/DEC/2015 | Expiry date |
|---|---|---|---|
| Created in 2012 | 368.233 | 2.339.916 | 2017 |
| Created in 2013 | 53.524 | 53.524 | 2018 |
| 421.757 | 2.393.440 |
As of 2012 (including), the deduction of reported tax losses, calculated in prior or current fiscal years (ie includes all reported losses identified in items i) and ii) above) is limited to 75% of the taxable income determined in each year and from 2014 (inclusive) is limited to 70% of the taxable income calculated in each fiscal year. This situation requires the annual assessment of the amount of deferred tax that can be recovered within the deadlines above.
As of 31 December 2016 and 2015, Toyota Caetano share capital was represented by 35.000.000 bearer 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 | 60,82% |
|---|---|
| - Toyota Motor Europe NV/SA | 27,00% |
In 2016 were distributed dividends in amount of 5.250.000 Euros as a result of application of net income of 2015.
The Board of Directors will propose that a dividend shall be paid in the amount of 5.250.000 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 67.319.345 Euros, includes in Other reserves.
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 2016's profits obtained in the financial year, amounting to Euros 5.950.755,83 stated in the individual financial statements of Toyota Caetano Portugal:
a) To non-distributable reserves by profits recognised in investments in subsidiaries resulting from the application of the equity method.
Eur 626.455,22
As of 31 December 2016 and 2015, loans can be detailed as follows
| 31/DEC/2016 | ||||||
|---|---|---|---|---|---|---|
| Current | Non Current | TOTAL | Current | Non Current | TOTAL | |
| Bank Loans | 10.000.000 | 10.000.000 | ||||
| Confirming | 9.930.536 | 9.930.536 | ||||
| Mutual Loans | 6.210.526 | 17.000.000 | 23.210.526 | 1.842.105 | 13.210.527 | 15.052.632 |
| Comercial Paper | 12.800.000 | 12.800.000 | 21.700.000 | 21.700.000 | ||
| Leasing | 4.045.860 | 13.350.204 | 17.396.064 | 2.908.367 | 10.918.440 | 13.826.807 |
| 32.986.922 | 30.350.204 | 63.337.126 | 36.450.473 | 24.128.967 | 60.579.440 |
As of December 31, 2016 and 2015, the detail of bank loans, overdrafts, other loans and Commercial Paper Programs is as follows:
| 2016 | Used amount | Limit |
|---|---|---|
| Current Bank Loan Overdrafts Confirming Mutual Loans Comercial Paper Leasing |
9.930.536 6.210.526 12.800.000 4.045.860 32.986.922 |
3.000.000 4.000.000 10.000.000 6.210.527 27.800.000 4.045.860 55.056.386 |
| Non current Mutual Loans Leasing |
17.000.000 13.350.204 30.350.204 63.337.126 |
17.000.000 13.350.204 30.350.204 85.406.590 |
| 2015 | Used amount | Limit |
|---|---|---|
| Current | ||
| Bank Loan | 10.000.000 | 13.000.000 |
| Overdrafts | 4.000.000 | |
| Mutual Loans | 1.842.105 | 1.842.105 |
| Comercial Paper | 21.700.000 | 29.200.000 |
| Leasing | 2.908.367 | 2.908.367 |
| 36.450.473 | 50.950.472 | |
| Non current | ||
| Mutual Loans | 13.210.527 | 13.210.527 |
| Leasing | 10.918.440 | 10.918.440 |
| 24.128.967 | 24.128.967 | |
| 60.579.440 | 75.079.439 |
(Amounts in Euros)
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 "Leasing" (current and non-current) include liabilities for leasing contracts, related to the purchase of facilities and equipment. The detail of this caption, as well as the reimbursement plan can be summarized as follows:
| M édum/long term | ||||||||
|---|---|---|---|---|---|---|---|---|
| Contract | Leasing | Short-Term | 2018 | 2019 | 2020 | > 2020 | TOTAL | TOTAL |
| Diverse | Industrial Equipment | 4.045.860 | 3.994.884 | 4.159.010 | 3.164.286 | 2.032.023 | 13.350.204 | 17.396.064 |
The maturity of the outstanding loans as per December 31, 2016 can be detailed as follows:
| 2016 | < 1year | 1 - 3 years | 3 - 5 years | > 5 years | Total |
|---|---|---|---|---|---|
| Confirming | 9.930.536 | 9.930.536 | |||
| Mutual Loans | 6.210.526 | 7.000.000 | 10.000.000 | 23.210.526 | |
| Comercial Paper | 12.800.000 | 12.800.000 | |||
| Leasing | 4.045.860 | 11.318.181 | 2.032.023 | 17.396.064 | |
| Total | 32.986.922 | 18.318.181 | 12.032.023 | 63.337.126 |
The interest payment plan are as follows:
| Interest Aging | 2017 | 2018 | 2019 | 2020 | > 2020 | Total |
|---|---|---|---|---|---|---|
| Mutual Loans | 548.072 | 346.250 | 222.500 | 222.500 | 222.500 | 1.561.822 |
| Leasing | 538.948 | 377.055 | 222.258 | 84.145 | 17.426 | 1.239.832 |
As of 31 December 2016 and 2015 this caption was composed of current accounts with suppliers, which end at short term.
The caption for Public Entities at December 31, 2016 and 2015 is as follows:
(Amounts in Euros)
| 31/DEC/2016 | 31/DEC/2015 | |
|---|---|---|
| Income Taxes Withheld | 160.573 | 155.411 |
| Value Added Taxes | 8.033.189 | 5.769.793 |
| Employee's Social Contributions | 250.628 | 245.018 |
| Local Taxes | 230.717 | 222.656 |
| Others | 1.261.486 | 1.857.497 |
| Total | 9.936.592 | 8.250.374 |
As of December 31, 2016 and 2015 the detail of other creditors was as follows:
| Other creditors | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Current | ||
| Dawn Payments | 92.758 | 383.786 |
| Shareholders | 12.052 | 11.998 |
| Other Accounts Payable | 93.902 | 28.535 |
| 198.711 | 424.319 |
As of December 31, 2016 and 2015 the detail of other current liabilities was as follows:
| ITEMS | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Interest | 120.885 | 92.530 |
| Sales Campaigns | 3.670.380 | 2.072.912 |
| Vacations pay and Bonus | 2.012.709 | 1.960.865 |
| Anticipaded costs related with sold vehicles | 689.185 | 949.923 |
| Warranty claims | 53.338 | 66.336 |
| Car tax related with disposed vehicles not registered | 743.009 | 526.486 |
| Personnel | 601.136 | 262.939 |
| Publicity | 151.824 | 143.873 |
| Royalties | 71.284 | 108.164 |
| Insurance | 134.194 | 262.294 |
| Amounts payable already passed to Group Companies | 667.807 | 0 |
| Others Suplies | 583.455 | 154.746 |
| Creditors for accrued expenses | 9.499.205 | 6.601.069 |
| Debtors interest | 5.827 | 6.457 |
| Signage to be charged to dealers | 35.301 | 539.568 |
| Intercompany margin deferral | 1.713.945 | 1.432.744 |
| Conservation Vehicles Contract | 4.969.360 | 3.692.098 |
| Subsidies | 501.360 | 509.507 |
| Others Gains to recognize | 355.132 | 148.447 |
| Deferrals | 7.580.925 | 6.328.821 |
| 17.080.130 | 12.929.890 |
(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 etting up a defined benefit plan. To cover these liabilities, an Autonomous Fund (which is managed by GNB - Sociedad Gestora de Fundo de 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, 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 1,6% to 2016, respectively (0%, 0% and 2,3% to 2015).
The variation of the Fund responsibilities of the Company with the Defined benefit plan in 2016 and 2015 can be summarized as follows:
| Responsibilities at January 1, 2015 | 20.218.005 |
|---|---|
| Cost of the current services | 44.694 |
| Cost of interest | 732.402 |
| (Gains) and actuarial losses | 616.619 |
| Pension payment | -1.484.800 |
| Responsibilities at December 31, 2015 | 20.126.920 |
| Responsibilities at January 1, 2016 | 20.126.920 |
| Cost of the current services | 39.172 |
| Cost of interest | 739.415 |
| (Gains) and actuarial losses | 1.574.421 |
| Pension payment | -1.541.830 |
| Transfers | 596.767 |
| Others | -571.451 |
| Responsibilities at December 31, 2016 | 20.963.414 |
The allocation of this amount during 2016 and 2015 to both plans (Defined benefit plan and Defined contribution plan) can be summarized as follows:
| Defined Benefit | Defined Contribution | Total | |
|---|---|---|---|
| Plan | plan | ||
| Fund's Value at January 1, 2015 | 16.986.766 | 3.937.544 | 20.924.308 |
| Contributions | 399.100 | 396.944 | 796.044 |
| Real recovery of the plan assets | 618.464 | 157.645 | 776.109 |
| Pension payment (Benefit payments) | -1.484.800 | -31.854 | -1.516.654 |
| Transfers between Members | 73.636 | -22.243 | 51.393 |
| Fund's Value 31 December de 2015 | 16.593.166 | 4.438.036 | 21.031.200 |
| Fund's Value at January 1, 2016 | 16.593.166 | 4.438.036 | 21.031.202 |
| Contributions | 641.808 | 213.897 | 855.705 |
| Real recovery of the plan assets | 188.670 | 73.923 | 262.593 |
| Pension payment (Benefit payments) | -1.541.830 | -27.960 | -1.569.790 |
| Transfers between Members | 489.176 | 48.719 | 537.895 |
| Used amounts from the CD account (Reserve Account) | 8.643 | -8.643 | 0 |
| Fund's Value 31 December de 2016 | 16.379.632 | 4.737.972 | 21.117.604 |
At 31 December 2016 and 2015, the Pension Fund's portfolio that covers the defined benefit plan was as follows:
| PORTFOLIO | % | Value | % | Value |
|---|---|---|---|---|
| 31/DEC/2016 | 31/DEC/2015 | |||
| Stocks | 9,6% | 1.572.445 | 9,0% | 1.493.385 |
| Bonds | 38,2% | 6.258.657 | 39,8% | 6.604.080 |
| Real Estate | 38,2% | 6.257.019 | 37,4% | 6.205.844 |
| Cash | 11,7% | 1.909.865 | 10,7% | 1.775.469 |
| Other Assets | 2,3% | 381.645 | 3,1% | 514.388 |
| Total | 100,0% | 16.379.632 | 100,0% | 16.593.166 |
The evolution of the pension fund's value and Toyota Caetano Portugal's responsibilities related with the defined benefit plan are as follows:
| 2016 | 2015 | |
|---|---|---|
| Responsibility's Values | 20.963.414 | 20.126.920 |
| Fund's Value | 16.379.632 | 16.593.166 |
The Toyota Caetano Portugal responsibilities shown above was safeguarded through the creation of an accrual of costs for about 5,8 million Euros (3,5 million Euros in 31 December 2015) reflected in the Balance sheet caption of Pension Fund Liabilities.
| ITENS 31/DEC/2016 | OPENING BALANCES | INCREASES | DISPOSALS | WRITE-OFFS | FINAL BALANCES |
|---|---|---|---|---|---|
| Doubtful Accounts Receivable Inventories |
5.767.873 0 |
21.737 | -80.816 | -6.484 | 5.702.310 0 |
| Total | 5.767.873 | 21.737 | -80.816 | -6.484 | 5.702.310 |
| ITENS 31/DEC/2015 | OPENING BALANCES | INCREASES | DISPOSALS | WRITE-OFFS | FINAL BALANCES |
|---|---|---|---|---|---|
| Doubtful Accounts Receivable Inventories |
5.932.696 377.462 |
16.190 | -170.161 | -10.852 -377.462 |
5.767.873 0 |
| Total | 6.310.157 | 16.190 | -170.161 | -388.314 | 5.767.873 |
Althoug these derivatives were contracted for interest rate hedging purposes as well as funding cost optimization, they haven't been designated for hedge accounting. Thus, they are measured at fair value through profit or loss.
The fair value of these derivative financial instruments at December 31, 2016 was negative at 28.425 Euros (31 December 2015 was negative EUR 94.532) and comprises an actual exposure of 4.210.526 Euros, since 22 December, 2016 for a period of three months.
These derivatives' valuation were provided at 31 December 2016 by the bank with whom they were contracted, taking into account future cash flows and risk estimates.
It is the intention of Toyota Caetano to hold these instruments until their maturities, so this form of assessment reflects the best estimate of present value of future cash flows to be generated by such instruments
Sales and services rendered by geographic markets, in 2016 and 2015, was as follows:
| 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||
|---|---|---|---|---|---|---|---|---|---|
| National Market | Var (%) | External Market | Var (%) | Total | Var (%) | ||||
| Light Vehicles | 180.177.699 | 169.620.505 | 6% | 40.871.133 | 29.306.075 | 39% | 221.048.831 | 198.926.580 | 11% |
| Heavy Vehicles | 505.885 | 243.519 | 108% | 505.885 | 243.519 | 108% | |||
| Industrial Vehicles | 13.978.593 | 17.057.891 | -18% | 95.305 | 66.436 | 43% | 14.073.898 | 17.124.327 | -18% |
| Spare Parts and Accessories | 34.413.789 | 36.128.615 | -5% | 557.584 | 524.409 | 6% | 34.971.372 | 36.653.024 | -5% |
| Others | 3.822.124 | 3.852.059 | -1% | 371 | 8.623 | -96% | 3.822.494 | 3.860.682 | -1% |
| 232.392.204 | 226.659.070 | 3% | 42.030.277 | 30.149.061 | 39% | 274.422.481 | 256.808.132 | 7% |
For the periods ended December 31, 2016 and 2015, the reporting by segments is as follows:
| 31/Dec/2016 | NATIONAL | EXTERNAL | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Vehicles | Industrial Equipment | Others | Vehicles | Inadustrial Equipment | Total | |||||||
| Industry | Commercial Commercial | Services | Rental | Industry | Commercial Commercial | Services | Rental | |||||
| PROFITS | ||||||||||||
| External sales | 285.115 214.471.048 13.996.633 | 3.657.449 | 35.053.246 | 6.881.355 | 77.265 | 371 | 274.422.481 | |||||
| Suplementary income | 11.876.807 | 18.040 11.894.847 | ||||||||||
| INCOME | ||||||||||||
| Operational income | 1.054 | 6.713.750 | 2.068.493 | 1.647.438 | 1.038.448 | -2.454.943 | 227.450 | 4.279 | 258 | 10.781 | 9.257.009 | |
| Financial income | 1.769 | 1.923.340 | 43.205 | 7.728 | 46.941 | 144.320 | 25.069 | 194 | 1 | 70 | 2.192.636 | |
| Gains in subsidiaries | 626.455 | 626.455 | ||||||||||
| Net income | -714 | 3.927.894 | 1.660.634 | 1.344.479 | 812.986 | 626.455 | -2.599.263 | 165.942 | 3.350 | 211 | 8.783 | 5.950.756 |
| OTHER INFORMATION | ||||||||||||
| Total assets | 37.044.761 175.695.607 11.737.461 | 1.740.309 26.932.956 | 253.151.094 | |||||||||
| Total liabilities | 5.897.441 94.951.102 | 2.047.764 | 295.256 23.582.821 | 126.774.382 | ||||||||
| Investments in subsidiaries (1) | 37.196.156 | 37.196.156 | ||||||||||
| Capital Expenditur (2) | 41.492 | 1.931.288 | 0 | 24.412 | 7.119.751 | 9.116.941 | ||||||
| Depreciation (3) | 1.304.240 | 2.120.877 | 67.544 | 43.557 | 4.815.675 | 8.351.894 | ||||||
| 31/Dec/2015 | NATIONAL | EXTERNAL | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Vehicles | Industrial Equipment | Others | Vehicles | Inadustrial Equipment | Total | |||||||
| Industry | Commercial Commercial | Services | Rental | Industry | Commercial Commercial | Services | Rental | |||||
| PROFITS | ||||||||||||
| External sales | 13.152.446 194.339.004 17.036.151 | 2.052.875 | 25.231.427 | 4.899.430 | 88.176 | 8.623 | 256.808.132 | |||||
| Suplementary income | 11.371.255 | 21.740 11.392.995 | ||||||||||
| INCOME | ||||||||||||
| Operational income | -2.658.678 | 7.851.088 | 846.898 | 1.658.136 | 1.231.606 | -783.698 | 353.001 | 19.624 | 6.665 | 12.570 | 8.537.213 | |
| Financial income | 37.312 | 1.708.216 | 12.842 | 5.997 | 31.985 | 28.013 | 12.790 | 325 | 16 | 47 | 1.837.543 | |
| Gains in subsidiaries | 1.142.682 | 1.142.682 | ||||||||||
| Net income | -2.695.990 | 5.319.915 | 722.318 | 1.430.802 | 1.038.908 | 1.142.682 | -811.711 | 294.634 | 16.714 | 5.758 | 10.845 | 6.474.875 |
| OTHER INFORMATION | ||||||||||||
| Total assets | 41.180.066 165.417.233 11.494.005 | 2.422.197 25.218.298 | 245.731.799 | |||||||||
| Total liabilities | 9.609.144 88.376.300 | 1.311.987 | 320.755 18.107.376 | 117.725.562 | ||||||||
| Investments in subsidiaries (1) | 39.023.352 | 39.023.352 | ||||||||||
| Capital Expenditur (2) | 5.225.897 | 1.867.815 | 24.541 | 42.730 | 9.797.139 | 16.958.121 | ||||||
| Depreciation (3) | 1.352.891 | 2.001.875 | 55.401 | 41.403 | 4.127.494 | 7.579.064 | ||||||
(1) By equity method
(2) Capital Expenditur: (Net tangible,intagible and investments properties variation)+(year depretiation)
(3) From the year
At 31 December 2016 and 2015, supply expenses were as follows:
| DESCRIPTION | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Subcontracts | 63.177 | 25.068 |
| Specialized Services | 21.955.306 | 22.027.700 |
| Professional Services | 3.192.095 | 2.973.510 |
| Advertising | 14.035.925 | 14.404.005 |
| Vigilance and Security | 293.076 | 288.198 |
| Professional Fees | 663.951 | 673.667 |
| Comissions | 81.208 | 132.522 |
| Repairs and Maintenance | 822.717 | 736.072 |
| Others | 2.866.334 | 2.819.726 |
| Materials | 8.646.302 | 11.280.471 |
| Energy and fluids | 955.890 | 969.701 |
| Travel and Transportation | 2.338.275 | 2.176.122 |
| Traveling Expenses | 1.137.104 | 1.110.748 |
| Personnel Transportation | 90.386 | 99.547 |
| Transportation of Materials | 1.110.784 | 965.827 |
| Other Supplies | 2.146.518 | 2.198.873 |
| Rent | 415.019 | 347.489 |
| Communications | 449.960 | 350.771 |
| Insurance | 571.669 | 762.487 |
| Royalties | 334.109 | 339.332 |
| Notaries | 16.296 | 10.293 |
| Cleaning and Comfort | 359.466 | 388.501 |
| Total fornecimentos e serviços externos | 36.105.468 | 38.677.933 |
At 31 December 2016 and 2015, payroll expenses were as follows:
| DESCRIPTION | 31/DEC/2016 | 31/DEZ/2015 |
|---|---|---|
| Payroll - Management | 357.349 | 358.512 |
| Payroll - Other Personnel | 9.524.331 | 9.084.354 |
| Benefit Plans | 885.001 | 628.053 |
| Termination Indemnities | 118.937 | 117.941 |
| Social Security Contributions | 3.130.626 | 2.963.085 |
| Workmen's Insurance | 288.513 | 191.326 |
| Others | 2.042.515 | 2.180.770 |
| Payroll expenses | 16.347.273 | 15.524.042 |
During the years ended as of December 31, 2015 and 2014, the average number of personnel was as follows:
| ITEMS | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Employees | 382 | 363 |
| Production Personnel | 157 | 152 |
| 539 | 515 |
As of 31 December, 2016 and 2015, the captions "Other Expenses" and "Other Gains" were as follows:
| Other operating income | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Lease Equipment Rents charged Subsidies Advertising expenses and sales promotion recovered Obtained Cash Discounts Gains on Inventories Gains on Fixed Assets |
11.894.847 3.400.831 2.503.662 2.303.720 15.773 117.893 1.418.693 |
11.392.995 3.275.409 2.349.144 2.226.420 7.753 63.263 4.832.146 |
| Other | 14.546.313 | 15.266.400 |
| Total | 36.201.733 | 39.413.530 |
The caption Other refers provided services and warranties' recovery.
The caption Other Expenses includes trade incentives and bonuses granted to dealers.
| Other Expenses | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Tax | 709.360 | 617.636 |
| Cash Discount Granted | 3.338 | 7.271 |
| Bad Depts | 895 | |
| Donations | 2.050 | |
| Losses on Inventories | 136.202 | 52.604 |
| Losses on Fixed Assets | 87.449 | 941.161 |
| Other | 8.079.168 | 8.137.580 |
| Total | 9.017.567 | 9.757.147 |
The caption Other includes trade incentives and bonuses granted to dealers.
As of 31 December, 2016 and 2015, the captions "Financial Income" and "Financial Expenses" were as follows:
| Interest and similar income | 31/DEC/2016 | 31/DEC/2015 | ||
|---|---|---|---|---|
| Interest Losses for fair value Other Financial Expenses |
889 66.107 199.292 |
5.491 55.231 197.237 |
||
| 266.288 | 257.959 |
(Amounts in Euros)
| Interest and similar expenses | 31/DEC/2016 | 31/DEC/2015 | |
|---|---|---|---|
| Interest Other Financial Income |
1.814.985 643.939 |
1.676.225 419.277 |
|
| 2.458.924 | 2.095.502 |
We present below a summary table of the Company's financial instruments as of December 31, 2016 and 2015:
| Financial assets and liabilities | Financial assets | Financial liabilities | |||
|---|---|---|---|---|---|
| Note | 31/DEC/2016 | 31/DEC/2015 | 31/DEC/2016 | 31/DEC/2015 | |
| Derivate Financial Instruments | 25 | 28.425 | 94.532 | ||
| Other Financial Investments | 11 | 3.492.302 | 3.492.302 | ||
| Accounts Receivable | 13 | 101.960.592 | 87.035.232 | ||
| Other Accounts Receivable | 14 | 1.288.272 | 1.287.316 | ||
| Loans | 18 | 63.337.126 | 60.579.440 | ||
| Other Accounts Payable | 21 | 198.711 | 424.319 | ||
| Accounts Payable | 19 | 30.179.049 | 31.698.659 | ||
| Cash and Cash Equivalents | 5 | 8.654.980 | 8.024.428 | ||
As of 31 December 2016, the company was maintaining responsibilities like tenant relative to future installments of financial lease contracts of industrial equipment which are included in the caption "Loans" (Note 18).
The payment plan for the leasing contracts outstanding at December 31, 2016 is as follows:
| Medium/Long term | |||||||
|---|---|---|---|---|---|---|---|
| 2020 | Total | ||||||
| Contract | and | non | |||||
| Leasing | Short-Term | 2018 | 2019 | following | current | TOTAL | |
| Industrial | |||||||
| Diverse | Equipment | ||||||
| Capital | 4.045.860 | 3.994.884 | 4.159.010 | 5.196.309 | 13.350.204 | 17.396.064 | |
| Interest | 538.948 | 377.055 | 222.258 | 101.571 | 700.884 | 1.239.832 |
The fair value of the liabilities for leasing contracts is similar to the fair value of the leased assets.
Due and payable balances with Group and Associated companies, which, as of 31 December 2016 and 2015, were recorded in the captions "Accounts receivable", "Accounts payable", "Other financial investments" and " Shareholders", as follows:
| Accounts Receivable Accounts Payable |
31/Dec/2016 68.016.608 -1.074.161 |
31/Dec/2015 49.477.654 -857.707 |
|---|---|---|
| Shareholders | ||
| - RETGS's Companies (Note 14) . Saltano, SGPS, S.A. . Caetano Renting, S.A. . Caetano Auto, S.A. |
146.343 -568.117 1.317.984 --------------- |
147.394 -538.122 1.195.369 ------------- |
| 896.210 | 804.641 | |
| Other Financial Investments (Note 11) | ||
| . Saltano, SGPS, SA. | 3.432.799 | 3.432.799 |
Accounts Receivable and Accounts Payable (Notes 13 and 19)
Balances and transactions details between Toyota Caetano Portugal and Related Parties other than those referred on Note 14 can be summarized as follows:
| 2016 | Comercial Debt | Products | Fixed Assets | Services | Others | ||||
|---|---|---|---|---|---|---|---|---|---|
| Receivable | Payable | Sales | Purchases | Disposals | Rendered | Obtained | Expenses | Gains | |
| CAETANO AUTO CV, S.A. | 3.559.167 | 0 | 6.961.360 | 0 | 0 | 0 | 0 758.202 |
||
| CAETANO RENTING, SA | 8.639.773 | -111.374 | 13.449.962 | 12.222.486 | 0 | 45.474 | 158.041 | 464.217 | |
| CAETANO AUTO, S.A. | 55.817.668 | -962.786 | 125.233.185 | 463.821 | -2.418.481 | 5.743.719 | 9.900.794 | 4.973.180 | |
| Total | 68.016.608 | -1.074.161 | 145.644.507 | 12.686.307 | -2.418.481 | 5.789.193 | 10.058.836 | 6.195.599 |
| Comercial Debt | Products | Fixed Assets | Services | Others | |||||
|---|---|---|---|---|---|---|---|---|---|
| 2015 | Receivable Payable | Sales | Purchases | Disposals | Rendered | Obtained | Expenses | Gains | |
| CAETANO AUTO CV, S.A. | 503.406 | 200 | 4.879.290 | 200 | 81.672 | ||||
| CAETANO RENTING, SA | 7.989.083 | 77.874 | 9.599.154 | 7.445.972 | -36.585 | 69.007 | 197.400 | 519.898 | |
| CAETANO AUTO, S.A. | 40.985.166 | 779.632 125.612.573 | 409.912 | -831.890 | 7.269.721 | 9.898.988 | 2.052.240 | ||
| Total | 49.477.654 | 857.707 140.091.017 | 7.855.884 | -868.476 | 7.338.927 10.096.388 | 2.653.809 |
| Other Related Companies | Comercial Debt | Products | Fixed Assets | Services | Others | |||
|---|---|---|---|---|---|---|---|---|
| Receivable Payable | Sales | Purchases | Purchases | Rendered Obtained Expenses Gains | ||||
| GRUPO SALVADOR CAETANO, SGPS, S.A. | 77 | 0 | 0 | 0 | 0 | 0 | 0 | 122 |
| CAETANO BAVIERA - COMÉRCIO DE AUTOMÓVEIS, S.A. | 893.872 | -101.103 | 3.002.821 | 10.484 | -11.902 | 122.997 | 234.406 | 539.161 |
| LUSILECTRA - VEÍCULOS E EQUIPAMENTOS, S.A. | 60.407 | -65.469 | 40.197 | 15.088 | 44.519 | 149.492 | 3.596 | 73.524 |
| MDS AUTO - MEDIAÇÃO DE SEGUROS, S.A. | 2.987 | 16.880 | 510 | 0 | 0 | 0 | 0 | 5.241 |
| RIGOR - CONSULTORIA E GESTÃO, S.A. | 100.138 | -517.444 | 192 | 0 | 146.071 | 2.376.145 | 15.312 | 372.250 |
| PORTIANGA - COMÉRC. INTERNAC. E PARTICIPAÇÕES, S.A. | 63.698 | -130 | 2.134 | 0 | 0 | 286 | 0 | 71.283 |
| AMORIM, BRITO & SARDINHA, LDA. | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.627 |
| ROBERT HUDSON, LTD. | 23.705 | -778 | 1.989 | 0 | 0 | 0 | 778 | 1.390 |
| CARPLUS - COMÉRCIO DE AUTOMÓVEIS, S.A. GUÉRIN - RENT-A-CAR (DOIS), LDA. |
390 154.590 |
0 -21.157 |
763 25.357 |
0 17.201 |
0 0 |
0 0 |
0 0 |
13.243 128.293 |
| CAETSU PUBLICIDADE, S.A. | -1.847 | -740.142 | 47.967 | 299 | 0 | 2.485.003 | 3.900 | 765 |
| FINLOG - ALUGUER E COMÉRCIO DE AUTOMÓVEIS, S.A. | 2.963 | -81.668 | 2.455.825 | 11.085 | 0 | 365.266 | 31.509 | 103.552 |
| SALVADOR CAETANO AUTO, SGPS, S.A. | 84 | 0 | 0 | 0 | 0 | 0 | 0 | 68 |
| CHOICE CAR - COMÉRCIO DE AUTOMÓVEIS, S.A. | 2.285 | 0 | 0 | 0 | 0 | 0 | 0 | 7.713 |
| CAETANOBUS - FABRICAÇÃO DE CARROÇARIAS, S.A. | 6.751.835 | -26.610 | 32.994 | 0 | 0 | 72.912 | 26 | 3.115.456 |
| IBERICAR - SOCIEDAD IBERICA DEL AUTOMOVIL, SA | 17.632 | 0 | 0 | 0 | 0 | 0 | 0 | 17.632 |
| IBERICAR BENET, SL | 291 | 0 | 0 | 0 | -945.810 | 0 | 0 | 1.139 |
| CAETANO CITY E ACTIVE (NORTE), S.A. | 569.359 | -65.892 | 753.921 | 0 | 0 | 22.246 | 31.324 | 21.528 |
| CAETANO DRIVE, SPORT E URBAN, S.A. | -5.549 | 0 | 3.558 | 0 | 0 | 0 | 0 | 2.807 |
| CAETANO ACTIVE, S.A. | -458 | 0 | 455 | 0 | 0 | 0 | 0 | 172 |
| CAETANO POWER, S.A. | -2.208 | 0 | 3.270 | 0 | 0 | 0 | 0 | 850 |
| SALVADOR CAETANO AUTO ÁFRICA, SGPS, S.A. | 66 | 0 | 0 | 0 | 0 | 0 | 0 | 96 |
| AUTO PARTNER - IMOBILIÁRIA, S.A. | 35 | 0 | 0 | 0 | 0 | 0 | 0 | 71 |
| CAETANO TECHNIK, S.A. | -7.084 | 0 | 947 | 0 | 0 | 0 | 0 | 2.911 |
| IBERICAR AUTO NIPON, SLU | 97 | 0 | 0 | 0 | 0 | 0 | 0 | 97 |
| CAETANO RETAIL, SGPS, S.A. | 46.508 | 0 | 0 | 0 | 0 | 0 | 0 | 99.115 |
| CAETANO MOTORS, S.A. CAETANO STAR, S.A. |
-5.645 6.779 |
0 0 |
3.884 1.189 |
0 0 |
0 0 |
0 99 |
0 0 |
4.784 11.673 |
| LAVORAUTO - ADM. IMOB. E CONSULT. DE EMPRESAS, S.A. -1.091 | -1.827 | 0 | 0 | 0 | 0 | 0 | 17 | |
| CAETANO PARTS, LDA. | 0 | 0 | 6.295 | 8 | 0 | 3.060 | 0 | 6.059 |
| IBERICAR CUZCOMOTOR, SAU | 291 | 0 | 0 | 0 | 0 | 0 | 0 | 291 |
| IBERICAR CENTRO AUTO, SL | 389 | 0 | 0 | 0 | 0 | 0 | 0 | 389 |
| IBERICAR TECHNIK, SAU | 194 | 0 | 0 | 0 | 0 | 0 | 0 | 194 |
| IBERICAR RECAMBIOS CENTRO, SLU | 97 | 0 | 0 | 0 | 0 | 0 | 0 | 97 |
| IBERICAR REICOMSA, SAU | 291 | 0 | 0 | 0 | 0 | 0 | 0 | 647 |
| IBERICAR MOTORS MÁLAGA, SLU | 194 | 0 | 0 | 0 | 0 | 0 | 0 | 194 |
| SOL GREEN WATT, SL | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 390 |
| LIDERA SOLUCIONES, SL | 1.248 | 0 | 0 | 0 | 0 | 2.000 | 0 | 1.442 |
| IBERICAR MÓVIL, SLU | 194 | 0 | 0 | 0 | 0 | 0 | 0 | 314 |
| CAETANO FÓRMULA, S.A. | -5.361 | 0 | 1.393 | 0 | 0 | 183 | 0 | 2.872 |
| IBERICAR MOTORS CÁDIZ, SL | 389 | 0 | 0 | 0 | 0 | 0 | 0 | 389 |
| MOVICARGO - SERVIÇOS ADUANEIROS, LDA. | 1.059 | -232.281 | 0 | 27.683 | 0 | 43.011 | 537.978 | 3.460 |
| IBERICAR GESTOSO, SL | 583 | 0 | 0 | 0 | 0 | 0 | 0 | 943 |
| IBERICAR BARCELONA PREMIUM, SL | 1.933 | 0 | 0 | 0 | 0 | 0 | 0 | 1.933 |
| IBERICAR FÓRMULA CÁDIZ, SL IBERICAR CADÍ, SAU |
291 389 |
0 0 |
0 0 |
0 0 |
0 0 |
0 0 |
0 0 |
696 701 |
| GUERIN RENT-A-CAR, SLU | 97 | 0 | 0 | 0 | 0 | 0 | 0 | 97 |
| GLOBALWATT, SGPS, S.A. | 25 | 0 | 0 | 0 | 0 | 0 | 0 | 90 |
| CENTRAL SOLAR DE CASTANHOS, S.A. | 25 | 0 | 0 | 0 | 0 | 0 | 0 | 20 |
| VAS ÁFRICA, SGPS, S.A. | 105 | 0 | 0 | 0 | 0 | 0 | 0 | 88 |
| SALVADOR CAETANO INDÚSTRIA, SGPS, S.A. | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 252 |
| IBERICAR MÓVIL SUR, SLU | 97 | 0 | 0 | 0 | 0 | 0 | 0 | 97 |
| PV LOIRAL - PRODUÇÃO DE ENERGIA, UNIPESSOAL, LDA. | 25 | 0 | 0 | 0 | 0 | 0 | 0 | 20 |
| CAETANO AERONAUTIC, S.A. | 660.398 | -56.138 | 846 | 0 | 0 | 45.641 | 0 | 463.311 |
| SALVADOR CAETANO EQUIPAMENTOS, S.A. | 21 | 0 | 442 | 0 | 0 | 0 | 0 | 19 |
| CAETANO FÓRMULA EAST AFRICA, S.A. | 52 | 0 | 0 | 0 | 0 | 0 | 0 | 45 |
| CAETANO FÓRMULA MOÇAMBIQUE, SA | 484 | 0 | 0 | 0 | 0 | 0 | 0 | 544 |
| CAETANO MOVE ÁFRICA, S.A. | 21 | 0 | 0 | 0 | 0 | 0 | 0 | 19 |
| CAETANO FÓRMULA WEST AFRICA, S.A. | 0 | 0 | 223 | 0 | 0 | 0 | 0 | 183 |
| PLATINIUM V.H. - IMPORTAÇÃO DE AUTOMÓVEIS, S.A. | 8.316 | -14 | 0 | 0 | 0 | 14 | 0 | 26.955 |
| ATTENTIONFOCUS, LDA. | 8 | 0 | 0 | 0 | 0 | 0 | 0 | 41 |
| CAETANO ENERGY, S.A. | 8.837 | 0 | 1.206 | 0 | 0 | 0 | 0 | 9.052 |
| ATLÂNTICA - COMPANHIA PORTUGUESA DE PESCA, S.A. TURISPAIVA - SOCIEDADE TURÍSTICA PAIVENSE, S.A. |
5.132 135 |
0 0 |
0 0 |
0 0 |
0 0 |
0 0 |
0 0 |
17 1.320 |
| COVIM - SOC. AGRÍCOLA, SILVÍCOLA E IMOBILIÁRIA, S.A. | 0 | -2.460 | 0 | 0 | 0 | 2.000 | 0 | 39 |
| DICUORE - DECORAÇÃO, S.A. | 25 | 0 | 0 | 0 | 0 | 0 | 0 | 20 |
| RARCON - ARQUITECTURA E CONSULTADORIA, S.A. | 84 | -14.691 | 0 | 0 | 0 | 72.490 | 15 | 221 |
| SPRAMO - PUBLICIDADE E IMAGEM, S.A. | 0 | -681 | 0 | 0 | 0 | 0 | 0 | 0 |
| COCIGA - CONSTRUÇÕES CIVIS DE GAIA, S.A. | 375 | -89.926 | 0 | 0 | 0 | 57.859 | 0 | 1.969 |
| SIMOGA - SOCIEDADE IMOBILIÁRIA DE GAIA, S.A. | 1.036 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| FUNDAÇÃO SALVADOR CAETANO | 99 | 0 | 0 | 0 | 0 | 0 | 0 | 99 |
| TOYOTA MOTOR CORPORATION | 17.872 | -4.502.328 | 0 | 32.269.770 | 0 | 0 | 408.125 | 17.872 |
| TOYOTA MOTOR EUROPE | 5.585.589 -15.901.973 34.807.306 154.505.996 | 0 | 0 6.347.165 | 2.830.755 |
As of 31 December, 2016 and 2015, Toyota Caetano had assumed the following financial commitments:
| RESPONSABILITIES | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Commitments assumed by guaranties A.T.A. Fiscal Authorities Other Guaranties |
1.500.000 4.000.000 1.168.684 6.668.684 |
1.500.000 4.000.000 994.671 6.494.671 |
The financial commitments classified A.T.A include guarantee on imports provided to Customs Agency.
As a result of loans amounting to 17 million Euros Toyota Caetano granted the respective financial institutions mortgages on properties valued at the time of the referred loans, approximately 25,1 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.
Information related to environmental area
The company adopts the necessary measures relating to the environment, aiming to fulfil current applicable legislation.
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 2016.
The earnings per share for the year ended as of December 31, 2016 and 2015 were computed based on the following amounts:
| 31/DEC/2016 | 31/DEC/2015 | |
|---|---|---|
| Net Income | 5.950.756 | 6.474.875 |
| Number of shares | 35.000.000 | 35.000.000 |
| Earnings per share (basic and diluted) | 0,17 | 0,18 |
| Comprehensive income | 3.620.475 | 4.952.765 |
| Number of shares | 35.000.000 | 35.000.000 |
| Comprehensive income (basic and diluted) | 0,10 | 0,14 |
The remuneration of the board members in Toyota Caetano Portugal, S.A. during the years 2016 and 2015, was as follows:
| Board Members | 31/DEC/2016 | 31/DEC/2015 |
|---|---|---|
| Board of Directors Board of Auditors |
347.183 8.400 |
347.183 8.400 |
The remuneration of the Statutory Auditor, PricewatherhouseCoopers & Associados – S.R.O.C., Lda. for 2016 and 2015, was as follows:
| 31/DEC/2016 | 31/DEC/2015 | |
|---|---|---|
| Total fees related statutory audit Total fees for other services of fiability assurance |
29.500 3.500 |
29.500 |
(Amounts in Euros)
The company adopts the necessary measures relating to the environment, aiming to fulfil current applicable legislation.
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 2016.
Since the end of 2016 to the present date, and in terms of relevant facts, no significant events occurred
The financial statements were approved by the Board of Directors on 27 March 2017. According to the Portuguese Commercial Companies Code, it is possible the amended for 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 NOBUAKI FUJII MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
December 2016
| Dec-16 | Dec-15 | Dec-14 | |
|---|---|---|---|
| TURNOVER | 336.956.422 | 319.307.542 | 271.639.918 |
| CASH-FLOW | 22.814.263 | 20.569.096 | 16.286.390 |
| INTEREST AND OTHERS | 2.296.755 | 2.105.152 | 1.343.024 |
| PERSONNEL EXPENSES | 39.365.006 | 38.673.292 | 35.838.481 |
| NET INVESTMENT | 19.090.702 | 22.915.693 | 13.022.095 |
| NUMBER OF EMPLOYEES | 1.505 | 1.567 | 1.492 |
| NET INCOME WITH MINORITY INTEREST | 6.003.186 | 6.166.789 | 3.960.251 |
| NET INCOME WITH OUT MINORITY INTEREST | 5.950.756 | 6.134.247 | 3.973.763 |
| DEGREE OF AUTONOMY | 46,29% | 48,76% | 52,01% |
| ASSETS | Notes | 31/12/2016 | 31/12/2015 | |
|---|---|---|---|---|
| NON-CURRENT ASSETS | ||||
| Goodwill Intangible Assets Tangible Fixed Assets Investment properties Available for sale Financial Assets Deferred tax Assets Accounts Receivable |
Total non-current assets | 8 5 6 7 9 14 11 |
611 997 1 077 832 86 264 400 17 903 011 3 483 128 2 194 438 26 048 111 560 854 |
611 997 1 460 526 83 589 227 16 665 199 3 463 450 2 248 042 46 553 108 084 994 |
| CURRENT ASSETS Inventories Accounts Receivable Other Debtors Public Entities Income Tax Other Current Assets Cash and cash equivalents |
Total current assets | 10 and 24 11 and 24 12 21 21 13 15 |
82 791 897 57 894 408 2 999 881 1 151 938 99 372 4 723 329 14 556 190 164 217 015 |
82 163 203 56 830 687 3 146 581 105 973 1 148 070 3 074 581 11 364 954 157 834 049 |
| Total assets | 275 777 869 | 265 919 043 | ||
| SHAREHOLDERS' EQUITY & LIABILITIES | ||||
| EQUITY | ||||
| Share capital Legal Reserve Revaluation reserves Translation reserves Fair value reserves – Available for Sale Financial Assets Other Reserves Net Income |
16 16 16 16 9 and 16 16 |
35 000 000 7 498 903 6 195 184 (1 695 238) 402 446 73 024 661 5 950 756 126 376 712 |
35 000 000 7 498 903 6 195 184 (1 695 238) 382 767 74 490 374 6 134 247 128 006 237 |
|
| Non-controlling Interests | 17 | 1 294 261 | 1 647 295 | |
| Total equity | 127 670 973 | 129 653 532 | ||
| LIABILITIES NON-CURRENT LIABILITIES Loans Defined Benefit Plan Liabilities Provisions Deferred tax liabilities |
Total non-current liabilities | 18 23 24 14 |
32 894 408 8 434 420 407 105 1 717 275 43 453 208 |
27 011 863 5 700 000 303 252 1 723 613 34 738 728 |
| CURRENT LIABILITIES Loans Accounts Payable Other Creditors Public Entities Other current liabilities Defined Benefit Plan Liabilities Derivative financial instruments |
18 19 20 21 22 23 25 |
36 326 297 35 509 231 1 095 835 10 321 909 20 680 411 691 580 28 425 |
36 801 453 36 237 691 1 265 885 9 663 087 17 464 135 - 94 532 |
|
| Total current liabilities | 104 653 688 | 101 526 783 | ||
| Total liabilities and shareholder' equity | 275 777 869 | 265 919 043 |
The annex integrates the Balance sheet at 31 December 2016.
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 NOBUAKI FUJII MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
| Notes | 31/12/2016 | 31/12/2015 | ||
|---|---|---|---|---|
| Operating Income: | ||||
| Sales | 29 | 316 199 986 | 299 879 607 | |
| Services Rendered | 29 | 20 756 436 | 19 427 935 | |
| Other Operating Income | 32 | 43 214 520 | 46 228 677 | |
| Variation of Products | 10 | (340 128) | (3 825 916) | |
| 379 830 814 | 361 710 303 | |||
| Operating expenses: | ||||
| Cost of sales | 10 | (274 923 739) | (260 181 357) | |
| External Supplies and Services | 30 | (37 106 246) | (36 416 747) | |
| Payroll Expenses | 31 | (39 365 006) | (38 673 292) | |
| Depreciations and Amortizations | 5, 6 and 7 | (15 540 732) | (13 662 625) | |
| Provisions | 24 | (257 706) | (111 771) | |
| Impairment losses | 24 | (113 831) | 605 826 | |
| Other Operating expenses | 32 | (2 958 588) | (3 000 555) | |
| (370 265 848) | (351 440 521) | |||
| Operating Results | 9 564 966 | 10 269 782 | ||
| Expense and financial losses | 33 | (2 643 285) | (2 193 639) | |
| Income and financial gains | 33 | 346 531 | 88 487 | |
| Profit before tax | 7 268 212 | 8 164 630 | ||
| Income tax for the year | 26 | (1 265 026) | (1 997 841) | |
| Net profit for the period | 6 003 186 | 6 166 789 | ||
| Net profit for the period attributable to: | ||||
| Equity holders of the parent | 5 950 756 | 6 134 247 | ||
| Non-controlling Interests | 52 430 | 32 542 | ||
| 6 003 186 | 6 166 789 | |||
| Earnings per share: | ||||
| Basic from continuing operations |
27 | 0,170 | 0,175 | |
| 0,170 | 0,175 | |||
| Diluted | ||||
| from continuing operations | 27 | 0,170 | 0,175 | |
| 0,170 | 0,175 |
The annex integrates the Income Statement at 31 December 2016.
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 NOBUAKI FUJII MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
| Sh are ital cap |
Leg al Re ser ves |
Rev alu atio n Re ser ves |
Tra nsl atio n res erv es |
Fai lue r va res erv es |
Oth er Re ser ves |
Tot al res erv es |
Ne t fit pro |
Su bto tal |
No roll ing ont n-c Inte ts res |
Tot al |
|
|---|---|---|---|---|---|---|---|---|---|---|---|
| Ba lan at 31 of D mb er 2 014 ces ece |
35 000 00 0 |
7 4 98 903 |
6 1 95 184 |
( 1 6 95 238 ) |
38 951 |
76 591 90 9 |
88 629 70 9 |
3 9 73 763 |
127 60 3 4 72 |
1 6 30 768 |
129 23 4 2 40 |
| Ch in t he iod ang es per : Ap lica tion of the Co lida ted Ne t In e 2 014 p nso com Oth ers le f fai Ava ilab ale Fin ial Inv est nts lue ch or s anc me r va ang es Re ( Act ial los ) ent me asu rem uar ses |
- - - - - |
- - - - - |
- - - - - |
- - - - - |
- - 343 81 6 - 343 81 6 |
3 9 73 763 ( 8) 982 79 - ( 542 50 0) 2 4 48 465 |
3 9 73 763 ( 8) 982 79 343 81 6 ( 542 50 0) 2 7 92 281 |
( ) 3 9 73 763 - - - ( 3 9 73 763 ) |
- ( 8) 982 79 343 81 6 ( 542 50 0) ( 1 1 81 482 ) |
- - - - - |
- ( 8) 982 79 343 81 6 ( 542 50 0) ( 1 1 81 482 ) |
| Co lida ted ofit for the riod t pr nso ne pe Tot al c hen siv e in e fo r th om pre com e y ear |
- - |
- - |
- - |
- - |
- 343 81 6 |
- ( 0) 542 50 |
- ( 4) 198 68 |
6 1 34 247 6 1 34 247 |
6 1 34 247 5 9 35 563 |
32 542 32 542 |
6 1 66 789 5 9 68 105 |
| 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 |
- - |
- - |
- - |
- - |
- - |
- ( 4 5 50 000 ) |
- ( 4 5 50 000 ) |
- - |
- ( 4 5 50 000 ) |
( 16 015 ) - |
( 16 015 ) ( 4 5 50 000 ) |
| of D Ba lan at 31 mb er 2 015 ces ece |
35 000 00 0 |
7 4 98 903 |
6 1 95 184 |
( ) 1 6 95 238 |
382 76 7 |
74 490 37 4 |
86 871 99 0 |
6 1 34 247 |
128 00 6 2 37 |
1 6 47 295 |
129 65 3 5 32 |
| Ba lan 31 of D mb er 2 015 at ces ece |
35 000 00 0 |
7 4 98 903 |
6 1 95 184 |
( 1 6 95 238 ) |
382 76 7 |
74 490 37 4 |
86 871 99 0 |
6 1 34 247 |
128 00 6 2 37 |
1 6 47 295 |
129 65 3 5 32 |
| Ch in t he iod ang es per : A lica tion of the Co lida ted Ne t In e 2 015 pp nso com O the Di stri but ed div ide nds to ntro llin inte ts rs – non -co g res Ava ilab le f ale Fin ial Inv fai lue ch est nts or s anc me r va ang es Re ( Act ial los ) ent me asu rem uar ses |
- - - - - |
- - - - - |
- - - - - |
- - - - - |
- - 19 679 - 19 679 |
6 1 34 247 - - ( 2 3 49 960 ) 3 7 84 287 |
6 1 34 247 - 19 679 ( 2 3 49 960 ) 3 8 03 966 |
( ) 6 1 34 247 - - - ( ) 6 1 34 247 |
- - 19 679 ( 2 3 49 960 ) ( ) 2 3 30 281 |
- ( 8) 375 24 - ( 30 216 ) ( 4) 405 46 |
- ( 8) 375 24 19 679 ( 2 3 80 176 ) ( ) 2 7 35 745 |
| Co lida ted ofit for the riod t pr nso ne pe e fo Tot al c hen siv e in r th om pre com e y ear |
- - |
- - |
- - |
- - |
- 19 679 |
- ( ) 2 3 49 960 |
- ( ) 2 3 30 281 |
5 9 50 756 5 9 50 756 |
5 9 50 756 3 6 20 475 |
52 430 52 430 |
6 0 03 186 3 6 72 905 |
| 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 |
- - |
- - |
- - |
- - |
- - |
- ( ) 5 2 50 000 |
- ( ) 5 2 50 000 |
- - |
- ( ) 5 2 50 000 |
- - |
- ( ) 5 2 50 000 |
| Ba lan at 31 of D mb er 2 016 ces ece |
35 000 00 0 |
7 4 98 903 |
6 1 95 184 |
( 1 6 95 238 ) |
402 44 6 |
73 024 66 1 |
85 425 95 6 |
5 9 50 756 |
126 37 6 7 12 |
1 2 94 261 |
127 67 0 9 73 |
The annex integrates this Statement at 31 December 2016.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS
ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS – PresidentMARIA ANGELINA MARTINS CAETANO RAMOSSALVADOR ACÁCIO MARTINS CAETANOMIGUEL PEDRO CAETANO RAMOSNOBUAKI FUJIIMATTHEW PETER HARRISONRUI MANUEL MACHADO DE NORONHA MENDES
(Amounts expressed in Euros)
| 31/12/2016 | 31/12/2015 | |
|---|---|---|
| Consolidated net profit for the period, including non-controlling interests | 6 003 186 | 6 166 789 |
| Components of other consolidated comprehensive income, | ||
| that could be recycled by profit and loss: | ||
| Available for sale Financial Assets fair value changes (Note 9) | 19 679 | 343 816 |
| Components of other consolidated comprehensive income, | ||
| that could not be recycled by profit and loss: | ||
| Remeasurement (Actuarial losses gross of tax) (Note 23) | (2 704 205) | (700 000) |
| Deferred tax of actuarial losses (Note 14) | 354 245 | 157 500 |
| Consolidated comprehensive income | 3 672 905 | 5 968 105 |
| Attributable to: | ||
| Equity holders of the parent company | 3 620 475 | 5 935 563 |
| Non-controlling interests | 52 430 | 32 542 |
The annex integrates this Statement at 31 December 2016.
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 NOBUAKI FUJII MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
| OPERATING ACTIVITIES | (Euros) 31/12/2015 |
|||||
|---|---|---|---|---|---|---|
| Collections from Customers Payments to Suppliers Payments to Employees |
31/12/2016 335.629.628 (311.678.339) (30.916.744) |
320.519.560 (304.217.012) (31.079.100) |
||||
| Operating Flow | (6.965.455) | (14.776.552) | ||||
| Payments of Income Tax Other Collections/Payments Related to Operating Activities |
225.691 29.538.422 |
(781.675) 23.936.800 |
||||
| Cash Flow from Operating Activities | 22.798.658 | 8.378.573 | ||||
| INVESTING ACTIVITIES | ||||||
| Collections from: Investments Investments Properties (Note 7) Tangible Fixed Assets (Note 6) Interest and Other income Dividends |
- 5.158.890 397.242 - |
5.556.132 | 4.245.461 2.807.093 74.737 - |
7.127.291 | ||
| Payments to: Investments Tangible Fixed Assets (Note 6) Intangible Assets (Note 5) |
(234) (14.064.333) (284.726) |
(14.349.293) | (6.755) (11.404.398) (1.474.235) |
(12.885.388) | ||
| Cash Flow from Investment Activities | (8.793.161) | (5.758.097) | ||||
| FINANCING ACTIVITIES | ||||||
| Collections from: Loans |
26.298.944 | 23.352.632 | ||||
| Payments to: Loans Lease Down Payments Interest and Other costs Dividends (Note 16) |
(25.110.526) (3.752.429) (2.612.560) (5.637.690) |
(37.113.205) | (17.893.476) (2.333.471) (2.349.775) (4.562.431) |
(27.139.153) | ||
| Cash Flow from Financing Activities | (10.814.261) | (3.786.521) | ||||
| CASH | ||||||
| Cash and Cash Equivalents at Beginning of Period (Note 15) Cash and Cash Equivalents at End of Period (Note 15) |
11.364.954 14.556.190 |
12.530.999 11.364.954 |
||||
| Net Flow in Cash Equivalents | 3.191.236 | (1.166.045) | ||||
| CHARTERED ACCONTANT ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA |
BOARD OF DIRECTORS JOSÉ REIS DA SILVA RAMOS – President MARIA ANGELINA MARTINS CAETANO RAMOS |
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS NOBUAKI FUJII 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.
Toyota Caetano Portugal, S.A., belongs to the Salvador Caetano Group (led by Salvador Caetano Group 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.
Toyota Caetano Group develops its activity mainly in Portugal and Cape Verde.
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 c).
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 Interpretation Committee ("SIC"), that have been endorsed by the European Union, being effective for the annual periods beginning on or after January 1, 2016.
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 following standards, interpretations, amendments and revisions endorsed by the European Union and mandatory in the fiscal years beginning on or after January 1, 2016, were adopted by the first time in the fiscal year ended at December 31, 2016
a) Changes to accounting standards that became effective as of January 1, 2016:
not associated to the number of years of service. This amendment did not have any impact in the Group financial statements.
b) Standards that have been published and are mandatory for the accounting periods beginning on or after January 1, 2017 and were already endorsed by the European Union:
(i) Standards:
c) Standards (new and amendments) and interpretations that have been published and are mandatory for the accounting periods beginning on or after January 1, 2017, but are not yet endorsed by the European Union:
IFRIC 22 (new), 'Foreign currency transactions and advance consideration' (effective for annual periods beginning on or after 1 January 2018). This interpretation is still subject to endorsement by European Union. An Interpretation to IAS 21 'The effects of changes in foreign exchange rates' it refers to the determination of the "date of transaction" when an entity either pays or receives consideration in advance for foreign currency denominated contracts". The date of transaction determines the exchange rate used to translate the foreign currency transactions. This interpretation did not have any impact in the Group financial statements.
Consolidation principles used by the Group were as follows:
a) Investments in Group companies
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.
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 recognised 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 recognised 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:
It was also applied since January 1, 2010 the IAS 27 reviewed, 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.
Investments in associated companies (companies where the Group has significant influence, but has no control over financial and operational decisions – usually corresponding to holdings between 20% and 50% in a company's share capital) are accounted for in accordance with the equity method.
According to the equity method, investments are initially recorded at their acquisition cost annually adjusted by the amount corresponding to the Group's share on the changes of equity (including the net profit) of the associated companies, against profit and losses of the year and by any dividends received and others variations occurred in the associated companies.
Any excess of the acquisition cost over the Group's share in the fair value of the identifiable net assets and liabilities acquired is recorded as goodwill which is included in the caption "Goodwill" (Note 8). If those differences are negative they are recorded as a gain of the year in the caption "Other operating income" after reconfirmation of the fair value assigned.
An assessment of investments in associated companies is performed, whenever there are signs of impairment, and recorded as a cost, when confirmed. When the losses by impairment recognised in previous years no longer exist, they are submitted to reversion.
When the Group's share of losses of the associated company exceeds the investment's book value, the investment is recorded at nil value while the net equity is not positive, except to the extent of the Group's commitments to the associated company being in such cases recorded a provision to cover those commitments.
Unrealised gains arising from transactions with associated companies are eliminated proportionally to the Group's interest in the associated company, against investment held. Unrealised losses are also eliminated, but only to the extent that there is no evidence of impairment of the asset transferred.
As of December 31,2016 and 2015, there were no investments in associated companies.
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.
Exchange rates used in 2016 and 2015 in the translation into Euros of foreign subsidiaries were as follows:
| 2016 | |||||||
|---|---|---|---|---|---|---|---|
| Currency | Final Exchange Rate for 2016 |
Average Exchange Rate for 2016 |
Exchange Rate at the Date of Incorporation |
Final Exchange rate for 2015 |
|||
| Caetano Auto CV, S.A. | CVE | 0,009069 | 0,009069 | 0,009069 | 0,009069 | ||
| Captions | Balance Sheet except Shareholders |
Income Statement | Share Capital | Retained Earnings |
| 2015 | |||||||
|---|---|---|---|---|---|---|---|
| Currency | Final Exchange Rate for 2015 |
Average Exchange Rate for 2015 |
Exchange Rate at the Date of Incorporation |
Final Exchange rate for 2014 |
|||
| Caetano Auto CV, S.A. | CVE | 0,009069 | 0,009069 | 0,009069 | 0,009069 | ||
| Captions | Balance Sheet except Shareholders |
Income Statement | Share Capital | Retained Earnings |
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 financial statements.
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 capitalised 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 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, and are recorded in the statement of profit and loss as "Other operating income" or "Other operating expenses".
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 costs in the statement of profit and loss 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 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 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".
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 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 "Impairment losses" 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 and Profit Method models).
(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 constituted by interest expenses and by the amortization of capital in accordance with the contractual financial plan, with interests recognised 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 35).
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 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.
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.
Non repayable subsidies obtained to finance investment in tangible fixed assets are recorded, only when there is a reasonable guaranty of receiving, as "Other non current liabilities" and "Other current liabilities", and recognized in the income statement as an income in accordance with the depreciation of the related tangible fixed assets.
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 fulfill the conditions for their concession.
The benefit related with government borrowings at an interest rate lower than the market interest rate. The benefit of the below-market rate of interest shall be recognized and measured as the difference between the initial carrying value of the loan determined in accordance with IAS 39 and the proceeds received. The benefit is accounted in accordance with IAS 20. The entity shall consider the conditions and obligations that have been, or must be, met when identifying the costs for which the benefit of the loan is intended to compensate.
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 "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 "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 (interests, premiums, ancillary costs and lease interests) are recognised 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.
i) Provisions
Provisions are recognized when, and only when, the Group has a present obligation (legal or constructive) arising from a past event; it is probable that an outflow of resources will be required and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each statement of financial position date and adjusted as to reflect the best estimate of its fair value as of that date (Note 24).
Restructuring provisions are recorded by the Group whenever there is a formal and detailed restructuring plan and it has been communicated to parties involved.
i) Investments
Investments held by the Group are classified as follows: 'Investments measured at fair value through profit and loss', 'Investments held to maturity' and 'Available for sale financial assets'. The classification depends on the subjacent intention of the investment acquisition.
This category is divided into two subcategories: "investments held for trading" and "investments at fair values through profit and loss". An investment is classified in this category if it is acquired with the objective of being sold at short term or if the adoption of the valorisation through this method significantly eliminates or reduces an accounting difference. The financial derivatives instruments are also classified as held for trading, except if they are designated for hedge accounting effects. The assets within this category are classified as current assets in case they are held for trading or if it is expected that they will be realized within a period inferior to 12 months starting from the statement of financial position date.
At December 31, 2016 and 2015, Toyota Caetano Group did not have financial instruments registered in the items "investments held for trading" and "investments at fair values through profit and loss".
(Amounts in Euros)
These are financial non-derivative assets with defined or determinable payment dates, have defined maturity or determined payment dates and there is an intention and capacity to maintain them until the maturity date. These investments are classified as non current Assets, unless they mature within 12 months as of the statement of financial position date.
At December 31, 2016 and 2015, Toyota Caetano Group did not have financial instruments registered in the items "investments held to maturity".
These are all the remaining investments that are not classified as held to maturity or measured at fair value through profit and loss. 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, 2016 and 2015, Toyota Caetano Group held shares of Cimóvel - Real Estate Investment Fund (Note 9).
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 financial assets" is 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 financial assets representative of share capital from unquoted companies are recognized at the acquisition cost, taking into account the existence or not of impairment losses. It is conviction of the Board of Directors 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 available for sale financial assets 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.
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 available for sale financial assets 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 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 "available for sale financial assets", 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.
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.
ii) Accounts receivables and Other debtors
Accounts receivable and Other debtors 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.
Accounts receivable which bear interests (namely those related to partial payments of vehicles sales) are recorded by their total amount, and the part related to interests is recorded in liabilities as a deferred income and recognized in the income statement in accordance with its maturity.
Evidence from the existence of impairment on accounts receivable exists when:
The Group uses historic information as well as information provided by the Credit and Legal Department to estimate impairment amounts.
iii) Loans
Loans are recorded as liabilities at their nominal value net of up-front expenses which are directly related to the issuance of those instruments. Financial expenses are calculated based on the effective interest rate and are recorded in the statement of profit and loss on an accrual basis.
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.
The Group uses derivative financial instruments to cover risks of financial investments. Derivative financial instruments used by the Group (mainly interest rate swaps and currency forwards), have the specific aim of interest rate risk coverage and exchange rate risk on future transactions in foreign currency.
Derivatives are initially recognized at their cost at the date on which they are contracted, being subsequently measured at fair value. The method used to recognize fair value changes depends on the designation (or not) of derivatives for hedge accounting purposes and on the nature of the hedged item.
At December 31, 2016 and 2015, Toyota Caetano Group only have derivative financial instruments for negotiation.
The derivative financial instruments, for which the company has not designated hedge accounting, although contracted for economic hedging purposes, are initially recorded by the cost, which corresponds to its fair value, if any, and subsequently re-evaluated by its fair value, which variations, calculated through the evaluations made by the banks with which the Group makes the respective contracts, directly affect the items of the finance results of the consolidated income statement.
The fair value of derivative financial instruments contracted at December 31, 2016 and 2015 is presented in Note 25.
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.
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 relate to the present value of future benefits adjusted for actuarial profits or losses and/or for liabilities for past services non recognised, 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.
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, Saltano 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 balance sheet 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.
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 Group companies.
(Amounts in Euros)
Revenue is recognized net of taxes and commercial discounts, by the fair value of the amount received or to be received, knowing that:
Revenue of the Toyota Caetano Portugal Group is comprised of the revenue arising from the activities mentioned in Note 1.
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, favourable and unfavourable, 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.
In each year the Group identifies the most adequate business segments.
In accordance with IFRS 8, an operating segment is a Group component:
Information related to the identified operating segments is included in Note 28.
Non current assets (and the groups of assets and liabilities to be disposed that are related to them) are classified as held for sale if it is expected that its accounting value will be recovered through disposal, and not through its continuous usage. This condition is only accomplished at the moment in which the sale is highly probable and the asset (and the group of assets and liabilities to be disposed that are related to them) is available for immediate sale under present conditions. Additionally, actions must be in place to allow the conclusion of the sale within a twelve-month period after the classification date in this caption.
Non current assets (and the group of assets and liabilities to be disposed that are related to them) classified as held for sale are computed considering the lowest of its accounting or fair value, net of its sale expenses.
As of December 31, 2016 and 2015 there were no non current assets held for sale which fulfil the requirements mentioned above.
t) Subsequent events
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.
(Amounts in Euros)
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, 2016 and 2015 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 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.
The company conducts sensitivity tests, in order to measure 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 minimise 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.
Foreign currency risk management policies seek to minimize the volatility of investments and transactions made in foreign currencies, aiming to reduce Group's results impact to changes in foreign exchange rates. The Group uses derivative instruments (currency forwards), as the management of foreign currency risk.
The Group foreign currency risk management hedge policies are decided casuistically, considering the foreign currency and country specific circumstances (as of December 31 ,2016 and 2015, 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 c), 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 | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| Cabo Verde Escudo (CVE) | 10.416.262 | 7.636.574 | 6.383.793 | 1.818.789 |
| Great Britain Pounds (GBP) | - | 1.644 | - | 989 |
| Japanese Yen (JPY) | - | - | 408.216 | 266.553 |
| Angolan Kwanza (AOA) | - | - | 778 | - |
The sensitivity of the Group to foreign exchange rate changes can be summarized as follows:
| 2016 | 2015 | |||||
|---|---|---|---|---|---|---|
| Variation | Profit or Loss | Equity | Profit or Loss | Equity | ||
| Cabo Verde Escudo (CVE) | 5% | 6.615 | 197.505 | 7.317 | 290.566 | |
| Great Britain Pounds (GBP) | 5% | - | - | 33 | - | |
| Japanese Yen (JPY) | 5% | (20.411) | - | (13.328) | - | |
| Angolan Kwanza (AOA) | 5% | (39) | - | - | - | |
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 2016 and 2015, the Group has been exposed to the risk of variation of available for sale financial assets' prices. At December 31, 2016 and 2015, 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 available for sale financial asset, 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 investments available for sale financial assets can be summarized as follows (increases/(decreases)):
| Dec-16 | Dec-15 | ||||
|---|---|---|---|---|---|
| Variation | Profit or Loss | Equity | Profit or Loss | Equity | |
| CIMÓVEL FUND | 10% | - | 341.639 | - | 339.671 |
| CIMÓVEL FUND | -10% | - | (341.639) | - | (339.671) |
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)):
| 2016 | 2015 | |||||
|---|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | ||
| Mutual Loans | 0,5 p.p. | 21.053 | - | 30.128 | - | |
| Guaranteed account | 0,5 p.p. | 10.000 | - | 50.000 | - | |
| Bank Credits | 0,5 p.p. | 5.006 | - | 106 | - | |
| Commercial Paper | 0,5 p.p. | 64.000 | - | 108.500 | - | |
| Long-term Bank Loan | 0,5 p.p. | 95.000 | - | 45.000 | - | |
| Confirming | 0,5 p.p. | 49.653 | - | - | - | |
| Total | 244.712 | - | 233.734 | - | ||
| Mutual Loans | (0,5 p.p.) | (21.053) | - | (30.128) | - | |
| Guaranteed account | (0,5 p.p.) | (10.000) | - | (50.000) | - | |
| Bank Credits | (0,5 p.p.) | (5.006) | - | (106) | - | |
| Commercial Paper | (0,5 p.p.) | (64.000) | - | (108.500) | - | |
| Long-term Bank Loan | (0,5 p.p.) | (95.000) | - | (45.000) | - | |
| Confirming | (0,5 p.p.) | (49.653) | - | - | - | |
| Total | (244.712) | - | (233.734) | - | ||
The above analysis does not include the consideration of the hedging (swap) financial instrument agreed by the Group to face the interest rates variation (Note 25).
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 maximisation of the return obtained and minimisation 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 minimisation of the probability of default in the repayment of any application in funds; and
(iii) Financial Efficiency, which is ensuring that the Companies maximise the value / minimize the opportunity cost of holding excess liquidity in the short-term.
(Amounts in Euros)
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 becomes exigible):
| 2016 | Less than 1 year |
Between 1 and 2 years |
Between 2 and 4 years |
More than 4 Years |
Total |
|---|---|---|---|---|---|
| Loans | 36.326.297 | 11.340.707 | 8.039.008 | 13.514.693 | 69.220.705 |
| Accounts Payable | 35.509.231 | - | - | - | 35.509.231 |
| Public Entities | 10.321.909 | - | - | - | 10.321.909 |
| Other Creditors | 1.095.835 | - | - | - | 1.095.835 |
| 83.253.272 | 11.340.707 | 8.039.008 | 13.514.693 | 116.147.680 | |
| 2015 | Less than 1 year |
Between 1 and 2 years |
Between 2 and 4 years |
More than 4 Years |
Total |
|---|---|---|---|---|---|
| Loans | 36.801.453 | 9.498.537 | 13.607.044 | 3.906.282 | 63.813.316 |
| Accounts Payable | 36.237.691 | - | - | - | 36.237.691 |
| Public Entities | 9.663.087 | - | - | - | 9.663.087 |
| Other Creditors | 1.265.885 | - | - | - | 1.265.885 |
| 83.968.116 | 9.498.537 | 13.607.044 | 3.906.282 | 110.979.979 |
At December 31, 2016 and 2015, the Group presents a net debt of 54.664.515 Euros and 52.448.362 Euros, respectively, divided between current and non current loans (Note 18) and cash and cash equivalents (Note 15), agreed with the different financial institutions.
The main objective of the Board 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 company. 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 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 monitorized through the financial leverage ratio (defined as net debt/ (net debt + equity)).
| 2016 | 2015 | |
|---|---|---|
| Debt | 69.220.705 | 63.813.316 |
| Cash and cash equivalents | 14.556.190 | 11.364.954 |
| Net Debt | 54.664.515 | 52.448.362 |
| Equity | 127.670.973 | 129.653.532 |
| Leverage ratio | 29,98% | 28,80% |
The gearing remains between acceptable levels, as established by management.
(Amounts in Euros)
Credit risk refers to the risk that the counterpart will default on its contractual obligations resulting in financial loss to the Group.
The Group's exposure to the credit risk is mainly associated to the receivable accounts of its ordinary activities. Before accepting new clients, the company obtains information from credit rating agencies and makes internal analysis to the collection risk and contingent processes through specific credit and legal departments, attributing credit limits by client, based on the information received.
Risk management seeks to guarantee an effective collection of its credits in the terms negotiated without impact on the financial Group's health. This risk is regularly monitored, being Management's objective (i) to impose credit limits to customers, considering the number of days of sales outstanding, individually or on groups of customers, (ii) control credit levels and (iii) perform regular impairment analysis. The Group obtains credit guarantees whenever the customers' financial situation demands.
Regarding independent dealership customers, the Group requires guarantees "on first demand", whose amounts, as of December 31, 2016 were of, approximately, 8.020.667 Euros (7.550.000 as of December 31, 2015), and whenever these amounts are exceeded, these customers' supplies are suspended.
The adjustments for accounts receivable are calculated considering (a) the client risk profile, (b) the average time of receipt and (c) the client financial situation. The movements of these adjustments for the years ending at December 31, 2016 and 2015 are stated in Note 24.
At December 31, 2016 and 2015, 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 of customers 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, on December 31, 2016, the credit quality of bank deposits:
| Deposits Long Term Rating | Rating Agency | Value |
|---|---|---|
| A1 | Moody's | 481.138 |
| A3 | Moody's | 206.038 |
| B1 | Moody's | 8.728.271 |
| B3 | Moody's | 754.648 |
| Ba1 | Moody's | 44.411 |
| Ba3 | Moody's | 413.457 |
| Baa1 | Moody's | 12.839 |
| Baa3 | Moody's | 159.215 |
| Caa1 | Moody's | 659.764 |
| Others without rating assigned | Others without rating assigned | 2.975.123 |
| Total | 14.434.904 |
The ratings presented correspond to ratings assigned by the Rating Agency Moody's.
During the year ended as of December 31, 2016, there were no changes in accounting policies and no material mistakes related with previous periods were identified.
(Amounts in Euros)
The affiliated companies included in consolidation by the full consolidation method and share of capital held as of December 31, 2016 and 2015, are as follows:
| Companies | Effective Percentage Held |
|
|---|---|---|
| 2016 | 2015 | |
| Toyota Caetano Portugal, S.A. | Parent Company | |
| Saltano - Investimentos e Gestão (S.G.P.S.), S.A. | 99,98% | 99,98% |
| Caetano Auto CV, S.A. | 81,24% | 81,24% |
| Caetano Renting, S.A. | 99,98% | 99,98% |
| Caetano - Auto, S.A. | 98,40% | 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).
During the year ended December 31, 2016 and 2015 there was not occurred any change in the composition of the consolidation perimeter.
During the year ended as December 31, 2016 and 2015, the movement in intangible assets, as well as in the respective accumulated amortization and accumulated impairment losses, was as follows:
| 2016 | ||||||
|---|---|---|---|---|---|---|
| Research and Development Expenses |
Industrial Property |
Goodwill | Computer Programs |
Intangible Assets in progress |
Total | |
| Gross Assets: | ||||||
| Opening Balances | 1.394.907 | 284.179 | 81.485 | 2.003.979 | 60.760 | 3.825.310 |
| Additions | - | 30.000 | - | 154.646 | 100.080 | 284.726 |
| Disposals and Write-offs | - | (1.405) | - | (19.188) | - | (20.593) |
| Transfers | 82.310 | - | - | - | - | 82.310 |
| Ending Balances | 1.477.217 | 312.774 | 81.485 | 2.139.437 | 160.840 | 4.171.753 |
| Accumulated Amortization and Impairment losses: |
||||||
| Opening Balances | 464.969 | 163.243 | 81.485 | 1.655.087 | - | 2.364.784 |
| Amortizations | 492.406 | 22.499 | - | 234.825 | - | 749.730 |
| Disposals and Write-offs | - | (1.405) | - | (19.188) | - | (20.593) |
| Ending Balances | 957.375 | 184.337 | 81.485 | 1.870.724 | - | 3.093.921 |
| Net Intangible Assets | 519.842 | 128.437 | - | 268.713 | 160.840 | 1.077.832 |
| 2015 | |||||||
|---|---|---|---|---|---|---|---|
| Research and Development Expenses |
Industrial Property |
Goodwill | Computer Programs |
Others Intangible Assets |
Intangible Assets in progress |
Total | |
| Gross Assets: | |||||||
| Opening Balances | - | 259.977 | 81.485 | 1.985.411 | 24.202 | - | 2.351.075 |
| Additions | 1.394.907 | - | - | 18.568 | - | 60.760 | 1.474.235 |
| Disposals and Write-offs | - | - | - | - | (24.202) | - | (24.202) |
| Transfers | - | 24.202 | - | - | - | - | 24.202 |
| Ending Balances | 1.394.907 | 284.179 | 81.485 | 2.003.979 | - | 60.760 | 3.825.310 |
| Accumulated Amortization and Impairment losses: |
|||||||
| Opening Balances | - | 144.391 | 81.485 | 1.470.283 | - | - | 1.696.159 |
| Amortizations | 464.969 | 18.852 | - | 184.804 | - | - | 668.625 |
| Ending Balances | 464.969 | 163.243 | 81.485 | 1.655.087 | - | - | 2.364.784 |
| Net Intangible Assets | 929.938 | 120.936 | - | 348.892 | - | 60.760 | 1.460.526 |
(Amounts in Euros)
In 2016 and 2015, the variations recorded in "research and development expenses" are due to expenditure on technological development associated with production in Ovar factory, of the new model Land Cruiser series 70 (LC70) for export.
During the years ended as of December 31, 2016 and 2015, the movement in tangible fixed assets, as well as in the respective accumulated depreciation and accumulated impairment losses, was as follows:
| 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Land | Buildings and Other Constructions |
Machinery and Equipment |
Transport Equipment |
Administrative Equipment |
Other Fixed Assets |
Tangible assets in Progress |
Total | |
| Gross Assets: | ||||||||
| Opening Balances | 16.842.823 | 93.538.551 | 60.117.299 | 55.526.355 | 7.880.877 | 4.318.806 | 397.459 | 238.622.170 |
| Additions | - | 567.891 | 372.209 | 34.798.555 | 395.634 | 97.337 | 121.931 | 36.353.557 |
| Disposals and Write-offs | - | (240.645) | (322.126) | (25.623.984) | (152.139) | (46.032) | (112.531) | (26.497.457) |
| Transfers | (371.058) | (2.797.381) | 265.130 | - | - | - | (397.459) | (3.300.768) |
| Ending Balances | 16.471.765 | 91.068.416 | 60.432.512 | 64.700.926 | 8.124.372 | 4.370.111 | 9.400 | 245.177.502 |
| Accumulated Depreciation and Impairment losses: |
||||||||
| Opening Balances | - | 60.281.003 | 54.610.829 | 28.543.554 | 7.514.630 | 4.082.927 | - | 155.032.943 |
| Depreciations | - | 2.357.289 | 1.248.210 | 10.330.551 | 125.054 | 75.971 | - | 14.137.075 |
| Disposals and Write-offs | - | (56.278) | (267.174) | (8.369.653) | (127.557) | (39.749) | - | (8.860.411) |
| Transfers | - | (1.396.505) | - | - | - | - | - | (1.396.505) |
| Ending Balances | - | 61.185.509 | 55.591.865 | 30.504.452 | 7.512.127 | 4.119.149 | - | 158.913.102 |
| Net Tangible Assets | 16.471.765 | 29.882.907 | 4.840.647 | 34.196.474 | 612.245 | 250.962 | 9.400 | 86.264.400 |
(Amounts in Euros)
| 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Land | Buildings and Other Constructions |
Machinery and Equipment |
Transport Equipment |
Administrative Equipment |
Other Fixed Assets |
Tangible assets in Progress |
Total | |
| Gross Assets: | ||||||||
| Opening Balances | 16.746.095 | 93.363.990 | 58.647.320 | 45.865.853 | 7.649.868 | 4.266.949 | 69.000 | 226.609.075 |
| Additions | 96.728 | 1.815.306 | 2.394.136 | 27.335.653 | 219.013 | 52.073 | 328.459 | 32.241.368 |
| Disposals and Write-offs | - | (1.628.749) | (924.157) | (17.675.151) | - | (12.384) | - | (20.240.441) |
| Transfers | - | (11.996) | - | - | 11.996 | 12.168 | - | 12.168 |
| Ending Balances | 16.842.823 | 93.538.551 | 60.117.299 | 55.526.355 | 7.880.877 | 4.318.806 | 397.459 | 238.622.170 |
| Accumulated Depreciation and Impairment losses: |
||||||||
| Opening Balances | - | 59.461.724 | 54.104.202 | 26.833.929 | 7.396.976 | 4.006.782 | - | 151.803.613 |
| Depreciations | - | 2.432.996 | 1.361.110 | 8.413.172 | 117.529 | 88.529 | - | 12.413.336 |
| Disposals and Write-offs | - | (1.613.717) | (854.395) | (6.703.547) | - | (12.384) | - | (9.184.043) |
| Transfers | - | - | (88) | - | 125 | - | - | 37 |
| Ending Balances | - | 60.281.003 | 54.610.829 | 28.543.554 | 7.514.630 | 4.082.927 | - | 155.032.943 |
| Net Tangible Assets | 16.842.823 | 33.257.548 | 5.506.470 | 26.982.801 | 366.247 | 235.879 | 397.459 | 83.589.227 |
In 2016, the transfers recorded in "Land" and "Buildings and Other Constructions" are related to the transfer for Investment Properties of Castelo Branco and Viana do Castelo Stands, as well the disposals and write-offs related of several machinery and administrative equipment affect to the same facilities.
In 2016 and 2015, the increases recorded in buildings and basic equipment and tools, are essentially the investment made in Ovar Plant, for the production of the Land Cruiser 70 Series model LC70, for the South African market.
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, 2016 and 2015, the assets acquired through financial leases are presented as follows:
| 2016 | |||
|---|---|---|---|
| Gross Assets |
Accumulated Depreciation |
Net Value | |
| Fixed Tangible Assets | 32.586.491 | 10.939.539 | 21.646.952 |
| 2015 | |||
| Gross Assets |
Accumulated Depreciation |
Net Value | |
| Fixed Tangible Assets | 23.286.089 | 5.335.258 | 17.950.831 |
As of December 31, 2016 and 2015, 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 4.010.010 Euros in the year ended as of December 31, 2016 (3.303.270 Euros 31, December 2015).
Additionally, in accordance with appraisals with reference to 2016, the fair value of those investment properties amounts to, approximately, 51 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, 2016 and 2015 are made up as follows:
| Dec-16 | Dec-15 | |||||
|---|---|---|---|---|---|---|
| Net accounting |
Net accounting |
|||||
| Location | value | Fair Value | Appraisal | value | Fair Value | Appraisal |
| Vila Nova de Gaia - Av. da República | 84.202 | 1.192.400 | internal | 87.064 | 1.192.400 | internal |
| Braga - Av. da Liberdade | 406 | 1.355.000 | internal | 604 | 1.355.000 | internal |
| Porto - Rua do Campo Alegre | 887.680 | 2.877.000 | internal | 952.996 | 2.877.000 | internal |
| Viseu - Teivas | 846.876 | 896.000 | external | 896.000 | 896.000 | external |
| Óbidos - Casal do Lameiro | 58.712 | 1.400.000 | internal | 59.558 | 1.400.000 | internal |
| Castro Daire - Av. João Rodrigues Cabrilho | 26.610 | 58.000 | internal | 27.709 | 58.000 | internal |
| Caldas da Rainha - Rua Dr. Miguel Bombarda | 17.531 | 85.000 | internal | 17.531 | 85.000 | internal |
| Viseu - Quinta do Cano | 1.742.162 | 2.461.740 | internal/external | 1.758.024 | 2.461.740 | internal/external |
| Amadora - Rua Elias Garcia | 184.476 | 149.000 | internal | 187.935 | 149.000 | internal |
| Portalegre - Zona Industrial | 188.958 | 173.000 | internal | 194.099 | 173.000 | internal |
| Portimão - Cabeço do Mocho | 424.781 | 550.000 | external | 424.781 | 410.000 | internal |
| Vila Real de Santo António - Rua de Angola | 24.628 | 83.000 | internal | 26.063 | 83.000 | internal |
| Rio Maior | 107.000 | 107.000 | internal | 107.000 | 107.000 | internal |
| S. João da Lourosa - Viseu | 460.072 | 487.030 | internal | 463.268 | 487.030 | internal |
| Vila Nova de Gaia – Av. Vasco da Gama (edifícios A e B) | 3.236.940 | 8.692.000 | external | 3.454.289 | 11.448.000 | internal |
| Vila Nova de Gaia – Av. Vasco da Gama (edifícios G) | 942.873 | 6.077.000 | external | 1.044.637 | 6.003.000 | internal |
| Carregado - Quinta da Boa Água / Quinta do Peixoto | 5.086.939 | 19.218.000 | external | 5.135.484 | 21.518.000 | internal |
| Lisboa - Av. Infante Santo | 1.170.590 | 1.247.000 | internal | 1.199.980 | 1.247.000 | internal |
| Vila Nova de Gaia - Rua das Pereira | 261.219 | 788.000 | internal | 273.052 | 788.000 | internal |
| Leiria - Azóia | 355.125 | 797.000 | internal | 355.125 | 797.000 | internal |
| Castelo Branco - Oficinas | 839.678 | 1.450.000 | internal | - | - | |
| Viana do Castelo - Stand e Oficinas | 955.553 | 975.000 | internal | - | - | |
| 17.903.011 | 51.118.170 | 16.665.199 | 53.535.170 | |||
The investment properties fair value disclosed in December 31, 2016 and December 31, 2015 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 2016, the absence of relevant claims in 2016 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 2016, believing they are still valid and current values of the last external evaluation carried out in late 2012, 2013, 2014 and 2016.
The rentals obtained related to the investment properties above mentioned are disclosed in Note 32.
The movement in the caption "Investment properties" as of December 31, 2016 and 2015 was as follows:
| 2016 | |||
|---|---|---|---|
| Gross Assets: | Land | Buildings | Total |
| Opening Balances | 9.916.943 | 36.133.435 | 46.050.378 |
| Increases | - | 69.182 | 69.182 |
| Transfers | 351.074 | 2.931.111 | 3.282.185 |
| Ending Balances | 10.268.017 | 39.133.728 | 49.401.745 |
| Accumulated Depreciation | |||
|---|---|---|---|
| Opening Balances | - | 29.385.179 | 29.385.179 |
| Increases | - | 653.927 | 653.927 |
| Transfers | - | 1.459.628 | 1.450.970 |
| Ending Balances | - | 31.498.734 | 31.498.734 |
| Net Value | 10.268.017 | 7.634.994 | 17.903.011 |
| 2015 | |||
|---|---|---|---|
| Gross Assets: | Land | Buildings | Total |
| Opening Balances | 9.985.217 | 36.926.900 | 46.912.117 |
| Increases | - | 2.070.055 | 2.070.055 |
| Disposals and Write-offs | (68.274) | (2.779.596) | (2.847.870) |
| Transfers | - | (83.924) | (83.924) |
| Ending Balances | 9.916.943 | 36.133.435 | 46.050.378 |
| Accumulated Depreciation | Land | Buildings | Total |
|---|---|---|---|
| Opening Balances | - | 29.566.796 | 29.566.796 |
| Increases | - | 580.664 | 580.664 |
| Disposals and Write-offs | - | (1.699.081) | (1.699.081) |
| Transfers | - | (62.014) | (62.014) |
| Impairment Losses | - | 998.814 | 998.814 |
| Ending Balances | - | 29.385.179 | 29.385.179 |
| Net Value | 9.916.943 | 6.748.256 | 16.665.199 |
The movements in 2016 are due to the reclassification of Tangible Fixed Assets for Investment Properties buildings in Castelo Branco and Viana de Castelo.
The movements in 2015, are due to the acquisition of a construction located in Vila Nova de Gaia facilities and the write off of our properties located in the so-called Carregado Industrial Complex due to the incident, caused by a fire. During the period occurs also the disposal of the industrial building located in Pedroso, Vila Nova de Gaia.
In 2015 the impairment loss is related to a building located I Viseu - Teivas. The accumulated impairment losses recorded in 2016 amounts to 2.628.814 Euros.
At December 31, 2016 and 2015 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 management and using discount rates that reflect the risks inherent of the business.
On December 31, 2016, 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% |
| Discount rate (2) | 9,83% |
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 Management, supported by the estimated discounted cash flows discounted, concluded that on December 31, 2016, the net book value of assets, including goodwill (0,6 millions Euros), does not exceed its recoverable amount (16 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.
As of December 31, 2016 and 2015 the movements in item "available for sale financial assets" were as follows:
| 2016 | 2015 | |
|---|---|---|
| Fair value at January 1 | 3.463.450 | 3.119.634 |
| Increase/(decrease) in fair value | 19.678 | 343.816 |
| Ending Balances | 3.483.128 | 3.463.450 |
As of December 31, 2016, "Available for sale financial assets" include the amount of 3.416.391 Euros (3.396.713 Euros December 31, 2015) 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 402.446 Euros). The remaining "Available for sale financial assets" 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 2016 and 2015 from recording "Available for sale financial assets" at fair value can be summarized as follows:
| 2016 | 2015 | |
|---|---|---|
| Variation in fair value | 19.678 | 343.816 |
| Equity effect | 19.678 | 343.816 |
(Amounts in Euros)
As of December 31, 2016 and 2015, this caption breakdown is as follows:
| 2016 | 2015 | |
|---|---|---|
| Raw and subsidiary Materials | 9.307.008 | 10.080.953 |
| Production in Process | 937.645 | 1.137.959 |
| Finished and semi-finished Products | 1.466.863 | 1.613.906 |
| Merchandise | 72.612.904 | 70.642.162 |
| 84.324.420 | 83.474.980 | |
| Accumulated impairment losses in inventories (Note 24) | (1.532.523) | (1.311.777) |
| 82.791.897 | 82.163.203 | |
During the years ended as of December 31, 2016 and 2015, cost of sales was as follows:
| 2016 | 2015 | ||||||
|---|---|---|---|---|---|---|---|
| Merchandise | Raw and subsidiary Materials |
Total | Merchandise | Raw and subsidiary Materials |
Total | ||
| Opening Balances | 70.642.162 | 10.080.953 | 80.723.115 | 61.390.733 | 3.938.945 | 65.329.678 | |
| Net Purchases | 245.920.555 | 30.199.981 | 276.120.536 | 238.586.581 | 36.988.213 | 275.574.794 | |
| Ending Balances | (72.612.904) | (9.307.008) | (81.919.912) | (70.642.162) | (10.080.953) | (80.723.115) | |
| Total | 243.949.813 | 30.973.926 | 274.923.739 | 229.335.152 | 30.846.205 | 260.181.357 | |
During the years ended as of December 31, 2016 and 2015, the variation in production was computed as follows:
| Finished and semi-finished products | |||
|---|---|---|---|
| 2016 | 2015 | ||
| Ending Balances | 2.404.508 | 2.751.865 | |
| Inventories adjustments | 7.229 | (16.274) | |
| Opening Balances | (2.751.865) | (6.561.507) | |
| Total | (340.128) | (3.825.916) | |
As of December 31, 2016 and 2015, the detail of this caption was as follows:
| CURRENT ASSETS | NON CURRENT ASSETS | |||
|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |
| Customers, current accounts | 57.872.820 | 56.738.200 | 26.048 | 46.553 |
| Doubtful Accounts Receivable | 9.465.385 | 9.803.136 | - | - |
| 67.338.205 | 66.541.336 | 26.048 | 46.553 | |
| Accumulated impairment losses in accounts Receivable (Note 24) | (9.443.797) | (9.710.649) | - | - |
| 57.894.408 | 56.830.687 | 26.048 | 46.553 | |
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).
| 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||||
| Accounts receivable | 32.787.221 | 1.177.256 | 1.163.134 | 16.234.201 | 51.361.812 | |||
| Employees | 14.873 | - | 4.012 | 526.996 | 545.881 | |||
| Independent Dealers | 5.649.284 | 333.953 | 1.074 | 6.864 | 5.991.175 | |||
| Total | 38.451.378 | 1.511.209 | 1.168.220 | 16.768.061 | 57.898.868 | |||
| 2015 | ||||||
|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 36.892.908 | 2.096.824 | 1.122.319 | 11.117.860 | 51.229.911 | |
| Employees | 73 | 9.756 | 2.094 | 86.911 | 98.834 | |
| Independent Dealers | 5.228.706 | 202.707 | 17.731 | 6.864 | 5.456.008 | |
| Total | 42.121.687 | 2.309.287 | 1.142.144 | 11.211.635 | 56.784.753 | |
Accounts receivable ageing considering impairment losses
| 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||||
| Doubtful Accounts Receivable | 12.780 | 7.463 | 4.986 | 9.440.156 | 9.465.385 | |||
| Total | 12.780 | 7.463 | 4.986 | 9.440.156 | 9.465.385 | |||
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
|---|---|---|---|---|---|---|
| Doubtful Accounts Receivable | 3.972 | 3.406 | 1.281 | 9.794.477 | 9.803.136 | |
| Total | 3.972 | 3.406 | 1.281 | 9.794.477 | 9.803.136 | |
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.
(Amounts in Euros)
Accounts receivable ageing against maturity
| 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||||
| Doubtful Accounts Receivable | 27 319 238 | 1 365 201 | 1 218 907 | 19 134 153 | 49 037 499 | |||
| Total | 27 319 238 | 1 365 201 | 1 218 907 | 19 134 153 | 49 037 499 | |||
| 2015 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |||||
| Doubtful Accounts Receivable | 23 617 945 | 2 460 883 | 1 269 597 | 18 758 525 | 46 106 950 | ||||
| Total | 23 617 945 | 2 460 883 | 1 269 597 | 18 758 525 | 46 106 950 | ||||
As of December 31, 2016 and 2015, the detail of this caption was as follows:
| Current Assets | ||
|---|---|---|
| 2016 | 2015 | |
| Down Payments to Suppliers | 441.391 | 813.122 |
| Other debtors | 2.558.490 | 2.333.459 |
| 2.999.881 | 3.146.581 | |
The caption "Other credits" includes the amount of, approximately, 0,8 Million Euros as of December 31, 2015 in referring to advance payments made by the Group related with leasehold improvements in commercial facilities for automotive retail, which were fully invoiced in previous years, being that the remaining amount is expected to be supported in the short term by third parties.
Additionally, this caption includes, as of December 31, 2016, the amount of, approximately, 800.000 Euros to be received from Salvador Caetano Auto Africa, S.G.P.S., S.A. (800.000 Euros as of December 31, 2015).
Finally, this caption also caption includes, as of December 31, 2016, the amount of, approximately, 618.000 Euros to be received from Salvador Caetano Foundation (683.000 Euros at December 31, 2015).
(Amounts in Euros)
As of December 31, 2016 and 2015, the detail of this caption was as follows:
| 2016 | 2015 | |
|---|---|---|
| Accrued Income | ||
| Fleet programs | 1.475.076 | - |
| Rappel | 1.135.857 | 608.718 |
| Commission | 369.029 | 407.131 |
| Warranty claims | 300.251 | 163.732 |
| Staff | 121.742 | 30.807 |
| Fees | 76.017 | 39.794 |
| Recover logistics costs | - | 335.530 |
| Interest | - | 626 |
| Others | 483.113 | 586.455 |
| 3.961.085 | 2.172.793 | |
| Deferred Expenses | ||
| Insurance | 144.176 | 126.848 |
| Interest | 75.058 | 50.144 |
| Rentals | 20.642 | 121.827 |
| Pension Fund | - | 201.710 |
| Others | 522.368 | 401.259 |
| 762.244 | 901.788 | |
| Total | 4.723.329 | 3.074.581 |
(Amounts in Euros)
The detail of deferred tax assets and liabilities recorded in the accompanying consolidated financial statements as of December 31, 2016 and 2015 is as follows:
| 2016 | |||||
|---|---|---|---|---|---|
| 2015 | Profit and Loss Impact (income tax) |
Profit and Loss Impact (deferred tax) |
Equity Impact |
2016 | |
| Deferred tax assets: | |||||
| Provisions not accepted for tax purpose | 287.440 | - | 7.133 | - | 294.573 |
| Tax losses | 502.622 | - | (414.053) | - | 88.569 |
| Defined Benefit Plan Liabilities | 1.257.500 | - | - | 354.245 | 1.611.745 |
| Write-off of tangible assets | 164.460 | - | 28.695 | - | 193.155 |
| Derivative financial instruments valuation | 36.020 | - | (29.624) | - | 6.396 |
| 2.248.042 | - | (407.849) | 354.245 | 2.194.438 | |
| Deferred tax liabilities: | |||||
| Depreciation as a result of legal and free revaluation of fixed assets | (659.109) | - | 6.338 | - | (652.771) |
| Effect of the reinvestments of the surplus in fixed assets sales | (165.772) | - | - | - | (165.772) |
| Fair value of investments fixed assets | (898.732) | - | - | - | (898.732) |
| (1.723.613) | - | 6.338 | - | (1.717.275) | |
| Net effect (Note 26) | (401.511) |
| 2015 | |||||
|---|---|---|---|---|---|
| 2014 | Profit and Loss Impact (income tax) |
Profit and Loss Impact (deferred tax) |
Equity Impact |
2015 | |
| Deferred tax assets: | |||||
| Provisions not accepted for tax purpose | 372.369 | - | (84.929) | - | 287.440 |
| Tax losses | 1.248.074 | (39.252) | (706.200) | - | 502.622 |
| Defined Benefit Plan Liabilities | 1.100.000 | - | - | 157.500 | 1.257.500 |
| Write-off of tangible assets | 410.521 | - | (246.061) | - | 164.460 |
| Derivative financial instruments valuation | 48.447 | - | (12.427) | - | 36.020 |
| 3.179.411 | (39.252) | (1.049.617) | 157.500 | 2.248.042 | |
| Deferred tax liabilities: | |||||
| Depreciation as a result of legal and free revaluation of fixed assets | (703.938) | - | 44.829 | - | (659.109) |
| Effect of the reinvestments of the surplus in fixed assets sales | (190.200) | - | 24.428 | - | (165.772) |
| Tax gains according to n. º 7 Artº7 30/G 2000 Portuguese Law | (5.136) | - | 5.136 | - | - |
| Fair value of investments fixed assets | (898.732) | - | - | - | (898.732) |
| (1.798.006) | - | 74.393 | - | (1.723.613) | |
| Net effect (Note 26) | (975.224) |
At December 31, 2016 and 2015, the companies of the Group reported the following tax losses, for which tax deferred assets have been recognized:
| 2016 | 2015 | ||||
|---|---|---|---|---|---|
| With Latest date of utilization | Tax Losses |
Deferred tax Assets |
Tax Losses |
Deferred tax Assets |
Expiry date |
| At 2012 | |||||
| - Consolidated tax Toyota Caetano Portugal At 2013 |
368.233 | 77.329 | 2.339.916 | 491.382 | 2017 |
| - Consolidated tax Toyota Caetano Portugal | 53.524 421.757 |
11.240 88.569 |
53.524 2.393.440 |
11.240 502.622 |
2018 |
From January, 2012 (inclusive), the deduction of tax losses carried forward, established in previous years or in progress (includes all reported losses identified in i), ii) and iii)) is limited to 75% of the taxable profit assessed in the relevant fiscal year and from 2014 (inclusive) is limited to 70% of taxable income in each year. This situation requires the annual evaluation of the amount of deferred tax can be recovered within the time indicated above.
As of December 31, 2016 and 2015 tax rates used to compute current and deferred tax assets and liabilities were as follows:
| Tax rates | ||
|---|---|---|
| 2016 | 2015 | |
| 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 2013 and 2016 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.
As of December 31, 2016 and 2015 cash and cash equivalents detail was the following:
| 2016 | 2015 | |
|---|---|---|
| Cash | 121.286 | 118.992 |
| Bank Deposits | 14.434.904 | 11.245.962 |
| 14.556.190 | 11.364.954 | |
(Amounts in Euros)
As of December 31, 2016 and 2015, 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. | 60,82% |
|---|---|
| - Toyota Motor Europe NV/SA | 27,00% |
On December 23, 2016, the Group Salvador Caetano S.G.P.S., S.A. sold to Salvador Caetano - Auto - S.G.P.S., S.A. 21.288.281 shares with a nominal value of 1 Euro each, fully subscribed and representing 60,82% of the share capital.
The Board of Directors will propose that a dividend shall be paid in the amount of 5.250.000 Euros. This proposal must be approved in the next General Shareholders Meeting.
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.
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 investments available for sale 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).
(Amounts in Euros)
Movements in this caption during the year ended as of December 31, 2016 and 2015 were as follows:
| 2016 | 2015 | |
|---|---|---|
| Opening Balances as of January, 1 | 1.647.295 | 1.630.768 |
| Dividends | (375.248) | - |
| Others | (30.216) | (16.015) |
| Net profit attributable to Non controlling Interests | 52.430 | 32.542 |
| 1.294.261 | 1.647.295 | |
As of December 31, 2016 and 2015, the decomposition of the mentioned value by subsidiary company is as follows:
| 2016 | % NCI | Non controlling Interest | Net profit attributable to Non controlling Interest |
|---|---|---|---|
| Saltano S.G.P.S. | 0,02% | 4.036 | (1) |
| Caetano Auto CV | 18,76% | 744.975 | 17.800 |
| Caetano Renting | 0,02% | 567 | 34 |
| Caetano Auto | 1,60% | 544.683 | 34.597 |
| 1.294.261 | 52.430 | ||
| 2015 | % NCI | Non controlling Interest | Net profit attributable to Non controlling Interest |
|---|---|---|---|
| Saltano S.G.P.S. | 0,02% | 4.036 | - |
| Caetano Auto CV | 18,76% | 1.102.372 | 31.750 |
| Caetano Renting | 0,02% | 559 | 40 |
| Caetano Auto | 1,60% | 540.328 | 752 |
| 1.647.295 | 32.542 | ||
The resume of financial information related to each subsidiary that is consolidated is presented below:
| Caetano Auto | Caetano Auto CV | |||
|---|---|---|---|---|
| Item | 2016 | 2015 | 2016 | 2015 |
| Non Current Assets | 47.781.219 | 49.302.852 | 1.442.626 | 1.493.829 |
| Current Assets | 66.644.229 | 47.146.673 | 8.973.636 | 6.142.745 |
| Total assets | 114.425.448 | 96.449.525 | 10.416.262 | 7.636.574 |
| Non Current Liabilities | 7.610.873 | 6.049.428 | 82.378 | - |
| Current Liabilities | 74.398.428 | 56.929.406 | 6.383.793 | 1.818.789 |
| Total equity | 32.416.147 | 33.470.691 | 3.950.091 | 5.817.785 |
| Sales and Service Rendered | 185.330.101 | 186.583.747 | 10.757.825 | 8.785.688 |
| Operating Results | 976.265 | 304.459 | 225.194 | 214.307 |
| Net Financial Results | 40.721 | 111.463 | (21.979) | (9.200) |
| Income tax for the year | (186.529) | (316.697) | (70.923) | (52.302) |
| Net profit for the period | 830.457 | 99.226 | 132.293 | 152.804 |
| Caetano Renting | Saltano | |||
|---|---|---|---|---|
| Item | 2016 | 2015 | 2016 | 2015 |
| Non Current Assets | 14.805.645 | 10.555.665 | 19.961.574 | 20.266.706 |
| Current Assets | 4.255.748 | 1.713.868 | 2.049.100 | 2.054.105 |
| Total assets | 19.061.393 | 12.269.533 | 22.010.674 | 22.320.811 |
| Non Current Liabilities | 200.014 | 200.014 | - | - |
| Current Liabilities | 15.789.454 | 9.241.907 | 3.580.386 | 3.581.438 |
| Total equity | 3.071.925 | 2.827.612 | 18.430.288 | 18.739.374 |
| Sales and Service Rendered | 4.532.916 | 3.667.882 | - | - |
| Operating Results | 391.278 | 236.156 | 671.997 | 141.874 |
| Net Financial Results | (176.928) | (191.642) | - | - |
| Income tax for the year | 29.962 | 48.498 | 1.051 | 596 |
| Net profit for the period | 244.312 | 93.012 | (673.048 | 142.470 |
As of December 31, 2016 and 2015 the caption "Loans" was as follows:
| 2016 | 2015 | |||||
|---|---|---|---|---|---|---|
| Current | Non Current | TOTAL | Current | Non Current | TOTAL | |
| Bank Loan | 30.941.048 | 17.000.000 | 47.941.048 | 33.542.105 | 13.210.526 | 46.752.631 |
| Overdrafts | 1.001.251 | - | 1.001.251 | 20.276 | - | 20.276 |
| Leasing | 4.383.998 | 15.894.408 | 20.278.406 | 3.239.072 | 13.801.337 | 17.040.409 |
| 36.326.297 | 32.894.408 | 69.220.705 | 36.801.453 | 27.011.863 | 63.813.316 | |
As of December 31, 2016 and 2015, the detail of bank loans, overdrafts and Commercial Paper Programs, as well as its conditions, were as follows:
| 2016 | ||||
|---|---|---|---|---|
| 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 |
| Toyota Caetano Portugal | 7.000.000 | 7.000.000 | 15-10-2014 | 4 years |
| 17.000.000 | 17.000.000 | |||
| Current | ||||
| Guaranteed account | 1.999.986 | 5.000.000 | ||
| Mutual Loans | 4.210.526 | 4.210.526 | 22-06-2012 | 5 years |
| Mutual Loans | 2.000.000 | 2.000.000 | 15-10-2014 | 4 years |
| Bank Credits | 1.001.251 | 5.500.000 | ||
| Confirming | 9.930.536 | 10.000.000 | 24-05-2016 | |
| Commercial Paper: | ||||
| Toyota Caetano Portugal | 9.200.000 | 9.200.000 | 27-11-2012 | 5 years |
| Toyota Caetano Portugal | 3.600.000 | 3.600.000 | 26-11-2012 | 5 years |
| Toyota Caetano Portugal | - | 10.000.000 | ||
| Toyota Caetano Portugal | - | 5.000.000 | ||
| 31.942.299 | 54.510.526 | |||
| 48.942.299 | 71.510.526 | |||
(Amounts in Euros)
| 2015 | ||||
|---|---|---|---|---|
| Description/Beneficiary Company | Used Amount | Limit | Beginning Date |
Date-Limit |
| Non current Mutual Loans |
||||
| Toyota Caetano Portugal | 4.210.526 | 4.210.526 | 22-06-2012 | 5 years |
| Toyota Caetano Portugal | 9.000.000 | 9.000.000 | 15-10-2014 | 5 years |
| 13.210.526 | 13.210.526 | |||
| Current | ||||
| Guaranteed account | 10.000.000 | 10.000.000 | ||
| Mutual Loans | 1.842.105 | 1.842.105 | 22-06-2012 | |
| Bank Credits | 20.276 | 7.500.000 | ||
| Confirming | - | 5.000.000 | ||
| Commercial Paper: | ||||
| Toyota Caetano Portugal | 9.200.000 | 9.200.000 | 27-11-2012 | 5 years |
| Toyota Caetano Portugal | 5.000.000 | 5.000.000 | 26-11-2012 | 5 years |
| Toyota Caetano Portugal | 2.500.000 | 2.500.000 | 18-08-2015 | 1 year (*) |
| Toyota Caetano Portugal | 5.000.000 | 5.000.000 | 07-07-2015 | 5 years |
| 33.562.381 | 46.042.105 | |||
| 46.772.907 | 59.252.631 | |||
(*) Automatically renewable up to 4 times.
Next, we present below the debt amount outstanding, for which there have been granted mortgages (note 37): - Loan - mutual contract: 4.210.526;
Interests relating to the financial instruments mentioned above are indexed to Euribor, plus a spread which varies between 1,45% and 6,75%.
The Company and its affiliates have available credit facilities as of December 31, 2016 amounting to approximately 71,5 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.
The item "Leasing" (current and non current) is related to the purchase of facilities and equipment. The detail of this caption, as well as the reimbursement plan can be summarized as follows:
| Non current | ||||||||
|---|---|---|---|---|---|---|---|---|
| Contract | Leasing | Current | 2018 | 2019 | 2020 | > 2020 | TOTAL | TOTAL |
| 2028278 | Commercial facilities | |||||||
| Capital | 96.438 | 97.164 | 97.895 | 98.632 | 119.048 | 412.739 | 509.177 | |
| Interests | 3.488 | 2.762 | 2.031 | 1.294 | 551 | 6.638 | 10.126 | |
| 559769 | Commercial facilities | |||||||
| Capital | 62.175 | 62.454 | 62.733 | 63.014 | 553.619 | 741.820 | 803.995 | |
| Interests | 3.469 | 3.191 | 2.911 | 2.630 | 10.208 | 18.940 | 22.409 | |
| 626064 | Commercial facilities | |||||||
| Capital | 160.644 | 166.358 | 172.274 | 178.402 | 719.304 | 1.236.338 | 1.396.982 | |
| Interests | 45.732 | 40.018 | 34.101 | 27.974 | 46.313 | 148.406 | 194.138 | |
| 2032103 | Commercial facilities | |||||||
| Capital | 18.881 | 19.847 | 20.832 | 21.930 | 90.697 | 153.306 | 172.187 | |
| Interests | 8.181 | 7.215 | 6.199 | 5.132 | 4.936 | 23.482 | 31.663 | |
| Various | Industrial Equipment | |||||||
| Capital | 4.045.860 | 3.994.884 | 4.159.010 | 3.164.286 | 2.032.025 | 13.350.205 | 17.396.065 | |
| Interests | 538.948 | 377.055 | 222.258 | 84.145 | 17.426 | 700.884 | 1.239.832 | |
| Total Capital | 4.383.998 | 4.340.707 | 4.512.744 | 3.526.264 | 3.514.693 | 15.894.408 | 20.278.406 | |
| Total Interests | 599.818 | 430.241 | 267.500 | 121.175 | 79.434 | 898.350 | 1.498.168 |
(Amounts in Euros)
| 2017 | 2018 | 2019 | 2020 | > 2020 | Total | |
|---|---|---|---|---|---|---|
| Mutual Loans | 6.210.526 | 7.000.00 | - | - | 10.000.000 | 23.210.526 |
| Confirming | 9.930.536 | - | - | - | - | 9.930.536 |
| Guaranteed account | 1.999.986 | - | - | - | - | 1.999.986 |
| Bank Credits | 1.001.251 | - | - | - | - | 1.001.251 |
| Commercial Paper | 12.800.000 | - | - | - | - | 12.800.000 |
| Leasing | 4.383.998 | 4.340.707 | 4.512.744 | 3.526.264 | 3.514.693 | 20.278.406 |
| Total Loans | 36.326.297 | 11.340.707 | 4.512.744 | 3.526.264 | 13.514.693 | 69.220.705 |
Interests
| 2017 | 2018 | 2019 | 2020 | > 2020 | Total | |
|---|---|---|---|---|---|---|
| Mutual Loans | 548.072 | 346.250 | 222.500 | 222.500 | 222.500 | 1.561.822 |
| Leasing | 701.810 | 519.710 | 303.538 | 128.384 | 83.591 | 1.737.033 |
| Total | 1.249.882 | 865.960 | 526.038 | 350.884 | 306.091 | 3.298.855 |
As of December 31, 2016 and 2015 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, 2016 and 2015 the detail of other creditors was as follows:
| Current Liabilities | |||
|---|---|---|---|
| 2016 | 2015 | ||
| Shareholders | 12.052 | 11.998 | |
| Advances from Customers | 735.115 | 1.040.429 | |
| Other Creditors | 348.668 | 213.458 | |
| 1.095.385 | 1.265.885 | ||
(Amounts in Euros)
As of December 31, 2016 and 2015 the caption public entities can be summarized as follows:
| Current Assets | |||
|---|---|---|---|
| 2016 2015 |
|||
| Public Entities: | |||
| Income Tax | 99.372 | 1.148.070 | |
| Value Added Taxes | 1.151.938 | 105.973 | |
| 1.251.310 | 1.254.043 | ||
| Current Liabilities | ||
|---|---|---|
| 2016 | 2015 | |
| Public Entities: | ||
| Income Taxes withheld | 349.174 | 384.748 |
| Value Added Taxes | 7.826.684 | 6.455.178 |
| Vehicles Tax | 1.084.948 | 1.590.785 |
| Custom Duties | 181.991 | 272.437 |
| Employee's social contributions | 646.318 | 687.222 |
| Others | 232.794 | 272.717 |
| 10.321.909 | 9.663.087 | |
Then is presented the decomposition of current income tax expense (see additional information in note 26):
| Current taxes | 2016 | 2015 |
|---|---|---|
| Insufficient Tax | 68.834 | 183.099 |
| Tax Refunds | (756.374) | - |
| Income Tax | 1.551.055 | 839.518 |
| 863.515 | 1.022.617 | |
There are no debts related to public entities (State and Social Security).
(Amounts in Euros)
As of December 31, 2016 and 2015 the caption "Other Current Liabilities" was as follows:
| 2016 | 2015 | |
|---|---|---|
| Accrued Cost | ||
| Vacation pay and bonus | 4.840.885 | 5.075.222 |
| Advertising Campaigns | 3.670.380 | 2.072.912 |
| Rappel charges attributable to fleet managers | 1.360.601 | 1.556.149 |
| Accrual for Vehicles Tax | 743.009 | 526.486 |
| Advance External Supplies and Services | 728.634 | 318.778 |
| Specialization cost assigned to vehicles sold | 689.185 | 961.699 |
| Amounts payable to third parties | 667.807 | - |
| Commission | 662.110 | 446.254 |
| Supply costs | 614.402 | 367.524 |
| Insurance | 170.418 | 317.508 |
| Municipal Property Tax | 124.990 | 127.849 |
| Interest | 123.885 | 92.530 |
| Royalties | 71.284 | 108.164 |
| Others | 1.292.539 | 1.163.977 |
| 15.760.129 | 13.135.052 | |
| Deferred Income | ||
| Vehicle maintenance contracts | 3.976.908 | 3.025.367 |
| Subsidy granted | 501.360 | 509.507 |
| Publicity recuperation | 35.301 | 539.568 |
| Interest Charged to Customers | 5.827 | 6.457 |
| Others | 400.886 | 248.184 |
| 4.920.282 | 4.329.083 | |
| Total | 20.680.411 | 17.464.135 |
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, 2016, 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.
A request was made as of December 19, 2006 to the fund manager of the Salvador Caetano Pension Fund (GNB – Sociedade Gestora de Fundos de Pensões, S.A.), to act near the "ISP - Instituto de Seguros de Portugal" and take the necessary measures to change the defined benefit plan into a defined contribution plan, among other changes.
Following the above mentioned, a dossier was sent on December 18, 2007 to Instituto de Seguros de Portugal containing the proposals to change the "Constitutive Contract" of Salvador Caetano Pension Fund, as well as the minute of approval of these changes by the Pensions Fund Advisory Committee, and requesting, with effects as from January 1, 2008, the approval of these changes.
(Amounts in Euros)
The proposal for changing the pension complement, dully approved by the Pension Funds Advisory Committee ("Comissão de Acompanhamento do Fundo de Pensões"), includes the maintenance of a defined benefit plan for 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 completed until January 1, 2008. A new group will be created to which all current employees with less than 50 years and/or less than 15 years of service will be transferred.
At December 29, 2008 Toyota Caetano Portugal, S.A. received a letter from ISP - Instituto de Seguros de Portugal (Portuguese Insurance Institute) with the approval of the pretended alterations and entering into force starting from January 1, 2008. ISP determined in the referred approval that the employees associated to the Salvador Caetano Pension Fund who at January 1, 2008 had achieved 15 years of service and had ages inferior to 50 years (and that shall integrate a Defined Contribution Plan) have the right to an individual "initial capital" according to the new Plan, determined according to the actuarial responsibilities as at December 31, 2007 and based on the presumptions and criteria used on that year.
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 1,6%, respectively. In 2015, the salary increase rate, pensions increase rate and discount rate were 0%, 0% and 2,3%, respectively.
The movement of the Fund responsibilities of the Company with the Defined benefit plan in 2016 and 2015 can be summarized as follows:
| Liability at 1/1/2015 | 33.574.520 |
|---|---|
| Current services cost | 117.656 |
| Interest cost | 1.231.419 |
| Actuarial (gains)/losses | 1.493.376 |
| Pension payments | (2.419.290) |
| Liability at 31/12/2015 | 33.997.681 |
| Liability at 1/1/2016 | 33.997.681 |
| Current services cost | 91.157 |
| Interest cost | 1.232.405 |
| Actuarial (gains)/losses | 2.704.205 |
| Pension payments | (2.517.413) |
| Transfers (Caetano Components) | 596.767 |
| Others | (736.838) |
| Liability at 31/12/2016 | 35.367.964 |
The allocation of this amount during 2016 and 2015 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 2014 | 29.075.997 | 10.202.273 | 39.278.270 |
| Contributions | 495.476 | 947.003 | 1.442.479 |
| Real return of plan assets | 1.071.278 | 385.086 | 1.456.364 |
| Pension payments | (2.419.292) | (31.854) | (2.451.146) |
| Transfers from other associate member account | 73.634 | 42.141 | 115.775 |
| Transfers to other associate member account | - | (48.261) | (48.261) |
| Value of the Fund at 31 December 2015 | 28.297.093 | 11.496.388 | 39.793.481 |
| Contributions | 875.115 | 216.205 | 1.091.320 |
| Real return of plan assets | 317.840 | 155.309 | 473.149 |
| Pension payments | (2.517.413) | (83.980) | (2.601.393) |
| Transfers from other associate member account | 489.176 | 72.539 | 561.715 |
| Transfers to other associate member account | - | (63.678) | (63.678) |
| Use of reserve account | 79.821 | (79.821) | - |
| Value of the Fund at 31 December 2016 | 27.541.632 | 11.712.962 | 39.254.594 |
As of December 31, 2016 and 2015, the breakdown of the asset portfolio of the Fund that covers the defined benefit plan was as follows:
| Asset Portfolio | Portfolio Weight | Value 31-12-2016 | Portfolio Weight | Value 31-12-2015 |
|---|---|---|---|---|
| Stocks | 9,60% | 2.643.997 | 9,03% | 2.555.228 |
| Bonds | 38,21% | 10.523.657 | 39,75% | 11.248.095 |
| Real Estate | 38,20% | 10.520.903 | 37,42% | 10.588.772 |
| Cash | 11,66% | 3.211.354 | 10,69% | 3.024.959 |
| Other Assets | 2,33% | 641.721 | 3,11% | 880.039 |
| Total | 100% | 27.541.632 | 100% | 28.297.093 |
At December 31, 2016, 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 |
|---|---|---|
| Cimóvel - Fundo de Investimento Imobiliário Fechado | 38,2% | 10.520.903 |
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 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|
| Responsibility amount | 35.367.964 | 33.997.681 | 33.574.520 | 29.059.458 | 29.650.534 | 29.686.944 | 29.550.745 |
| Fund Amount | 27.541.632 | 28.297.063 | 29.075.997 | 28.855.219 | 28.444.454 | 26.541.223 | 28.812.418 |
The net obligations of Toyota Caetano Portugal Group evidenced above is safeguarded through a provision recorded in the amount of 9.126.000 Euros, reflected in the balance sheet, in the item Pension Fund Liabilities.
(Amounts in Euros)
| 2016 | |||||
|---|---|---|---|---|---|
| Opening | Other | Ending | |||
| Balances | Increases | Decreases | regularizations | Balances | |
| Accumulated impairment losses in investments | 2.780.809 | - | - | - | 2.780.809 |
| Accumulated impairment losses in accounts Receivable (Note 11) | 9.710.649 | 46.306 | (153.221) | (159.937) | 9.443.797 |
| Accumulated impairment losses in inventories (Note 10) | 1.311.777 | 220.746 | - | - | 1.532.523 |
| Provisions | 303.252 | 257.706 | - | (153.853) | 407.105 |
| 2015 | |||||
|---|---|---|---|---|---|
| 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 |
1.781.995 10.338.615 1.901.129 311.551 |
- 96.216 18.776 111.771 |
- (112.690) (608.128) - |
998.814 (611.492) - (120.070) |
2.780.809 9.710.649 1.311.777 303.252 |
The variation observed in the caption impairment losses is related essentially with write-off of impairments of clients.
Derivative financial instruments used by the Group at December 31, 2016 and 2015 refer to:
It is a derivative financial instrument contracted in order to hedge the risk of interest rate associated with a loan agreement (cash flow hedge), which contributes to the reduction of exposure to changes in interest rates or the optimization the cost of funding and has not been designated for accounting purposes coverage. The fair value of such derivative financial instrument at December 31, 2016 was negative by 28.425 Euros (at December 31, 2015 was negative by 94.532 Euros) and comprises the balance sheet date a total exposure of 4,2 million euros from December 22, 2016 for the remaining period of three months.
This derivative financial instrument was valued at December 31, 2016 by the bank with whom it is contracted, taking into account future cash flows and estimated risk (Level 2 fair value hierarchy as paragraph 93 of IFRS 13 - inputs indirectly observable in the market).
It is the intention of Toyota Caetano Group to hold the instrument to maturity, so this valuation reflects the best estimate of the present value of future cash flows to be generated by this instrument.
The fair value changes aroused from derivative financial instruments are recognized in the captions financial income and expenses (note 33).
Then presents summary table of derivatives held at December 31, 2016 and 2015:
| Derivate financial instrument | Fair Value 2016 | Fair Value 2015 | Type | Rate Swap | Rate receivable |
|---|---|---|---|---|---|
| Interest rate Swap BBVA | (28.425) | (94.532) | Negotiation | 1,10% | Euribor 3M |
| TOTAL | (28.425) | (94.532) | |||
(Amounts in Euros)
The income tax for the year ended as of December 31, 2016 and 2015 was as follows:
| 2016 | 2015 | |
|---|---|---|
| Income Tax (Note 21) | 863.515 | 1.022.617 |
| Deferred income taxes (Note 14) | 401.511 | 975.224 |
| 1.265.026 | 1.997.841 | |
The reconciliation of the earnings before taxes of the years ended at December 31, 2016 and 2015 can be summarized as follows:
| 2016 | 2015 | |
|---|---|---|
| Profit before taxation | 7.268.212 | 8.164.630 |
| Tax on profit | 22,50% | 22,50% |
| Theoretical tax charge | 1.635.348 | 1.837.042 |
| Accounting surplus | (471.532) | (918.116) |
| Fiscally surplus | 234.989 | 454.044 |
| Reversal of impairment losses | - | (80.622) |
| Fair value adjustments | (4.132) | (72.201) |
| Fiscally adjustments | (3.610) | (9.253) |
| Others | 267.455 | 71.703 |
| Fiscal losses | (414.053) | (745.452) |
| Effective Tax | 1.244.465 | 537.144 |
| Additional income tax | 314.358 | 312.215 |
| Excess/Insufficient Tax | 68.834 | 183.099 |
| Tax Refunds | (756.374) | - |
| Others | (7.768) | (9.841) |
| Income Tax | 863.515 | 1.022.617 |
| Deferred income taxes | 401.511 | 975.224 |
| Effective tax charge | 1.265.026 | 1.997.841 |
The earnings per share for the year ended as of December 31, 2016 and 2015 were computed based on the following amounts:
| 2016 | 2015 |
|---|---|
| 5.950.756 | 6.134.247 |
| 6.134.247 | |
| 35.000.000 | 35.000.000 |
| 0,170 | 0,175 |
| 5.950.756 |
During 2016 and 2015 there were no changes in the number of shares outstanding.
(Amounts in Euros)
The main information relating to the business segments existing on December, 2016 and 2015, prepared according to the same accounting policies and criteria adopted in the preparation of the consolidated financial statements, is as follows:
| 201 6 |
||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NA TIO NA L |
FO RE IGN |
|||||||||||||||||
| Ve hic |
les | Ind | rial uip ust eq |
nt me |
Oth | Ve hic les |
Ind | rial uip ust nt eq 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 |
||||||||||||||||||
| al S Ext ale ern s |
285 .11 5 |
384 .28 3.6 01 |
15. 147 .46 9 |
3.4 05. 180 |
15. 826 .77 3 |
3.6 57. 449 |
13. 022 .58 4 |
- | 35. 053 .24 6 |
18. 009 .25 8 |
77. 265 |
371 | - | (13 ) 9.9 17. 042 |
348 .85 1.2 69 |
|||
| Inc om e |
||||||||||||||||||
| Op tion al i era nco me |
(48 ) |
7.4 47. 164 |
274 .69 7 |
292 .89 7 |
2.0 68. 493 |
1.6 47. 438 |
1.1 35. 793 |
(4.6 39) |
(2.4 54. 943 ) |
455 .43 0 |
4.2 79 |
258 | 10. 781 |
(1.3 12. 634 ) |
9.5 64. 966 |
|||
| Fin ial Inc anc om e |
(66 7) |
(1.8 ) 36. 560 |
5.8 04 |
(13 74) 1.8 |
(43 5) .20 |
(7.7 28) |
(90 8) .95 |
8 | (14 20) 4.3 |
(46 0) .99 |
(19 4) |
- | (70 ) |
- | (2.2 ) 96. 754 |
|||
| Ne t in ith ntro llin inte ts com e w non co g res |
(71 4) |
4.4 45. 952 |
229 .05 3 |
183 .53 0 |
1.6 60. 634 |
1.3 44. 479 |
873 .76 8 |
(3.6 48) |
(2.5 99. 263 ) |
300 .55 8 |
3.3 50 |
211 | 8.7 83 |
(44 3.5 07) |
6.0 03. 186 |
|||
| Tot al c olid ate d a ts ons sse |
37. 074 .38 8 |
257 .82 4.2 24 |
31. 293 .24 7 |
12. 130 .87 4 |
11. 746 .84 8 |
1.7 41. 701 |
33. 885 .01 5 |
22. 357 .58 3 |
- | 10. 733 .65 2 |
- | - | - | (14 ) 3.0 09. 663 |
275 .77 7.8 69 |
|||
| Tot al c olid d li abi litie ate ons s |
5.8 84. 359 |
153 .17 2.3 63 |
22. 352 .35 1 |
12. 011 .47 3 |
2.0 43. 221 |
294 .60 1 |
27. 508 .50 6 |
3.6 10. 228 |
- | 6.6 92. 879 |
- | - | - | (85 .46 3.0 85) |
148 .10 6.8 96 |
|||
| Ca ital p ex pen ses |
41. 492 |
1.3 49. 225 |
(22 2.6 60) |
7.6 52. 462 |
- | 24. 412 |
8.0 47. 901 |
(29 7) |
- | 107 .72 0 |
- | - | - | 179 .02 8 |
17. 179 .28 3 |
|||
| De cia tion pre s |
1.3 04. 240 |
3.2 76. 514 |
618 .78 2 |
3.8 19. 785 |
67. 544 |
43. 557 |
5.3 26. 523 |
826 | - | 167 .45 7 |
- | - | - | 261 .57 6 |
14. 886 .80 4 |
|||
(Amounts in Euros)
| 201 5 |
|||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NA TIO NA L |
FO RE IGN |
||||||||||||||
| Ve hic |
les | Ind rial uip ust nt eq 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 |
Co ial ry mm erc |
chi ma nes |
Se rvic es |
Re l nta |
|||
| PR OF IT |
|||||||||||||||
| Ext al S ale ern s |
13. 152 .44 6 |
365 .12 0.5 93 |
15. 153 .43 9 |
4.4 87. 790 |
1 8.0 48. 357 |
2 .05 2.8 75 |
12. 414 .97 5 |
- | 25. 231 .42 |
7 14. 333 .83 7 |
88. 176 |
8.6 23 |
21. 740 |
( 139 .41 3.7 41) |
330 .70 0.5 37 |
| Inc om e |
|||||||||||||||
| Op tion al i era nco me |
( ) 2.6 67. 875 |
8.3 48. 062 |
52. 562 |
168 .03 5 |
846 .89 8 |
1.6 58. 136 |
1.2 98. 805 |
( 49) 2.7 |
( 783 .69 |
8) 569 .90 3 |
19. 624 |
6.6 65 |
12. 570 |
742 .84 4 |
10. 269 .78 2 |
| Fin ial Inc anc om e |
( 28. 115 ) |
( 1.7 65. 298 ) |
( 18. 841 ) |
( 136 .18 8) |
( 12. 842 ) |
( 5.9 97) |
( 86. 518 ) |
( 31) |
( 28. 013 |
) ( 22. 920 ) |
( 326 ) |
( 16) |
( 47) |
- | ( 2.1 05. 152 ) |
| Ne t in ith llin inte ntro ts com e w non co g res |
( 2.6 95. 990 ) |
5.0 70. 109 |
8.0 45 |
66. 545 |
722 .31 8 |
1.4 30. 802 |
1.0 65. 375 |
( 2.2 27) |
( 811 .71 |
1) 447 .83 5 |
16. 714 |
5.7 58 |
10. 845 |
832 .37 0 |
6.1 66. 789 |
| Tot al c olid d a ate ts ons sse |
41. 412 .71 6 |
256 .13 0.9 58 |
7.8 93. 730 |
8 .77 8.1 54 |
11. 558 .94 1 |
2.4 35. 881 |
2 8.8 52. 150 |
2 3.9 09. 481 |
8.0 26. 355 - |
- | - | - | ( 123 .07 9.3 23) |
265 .91 9.0 43 |
|
| Tot al c olid d li abi litie ate ons s |
9.5 96. 156 |
1 46. 876 .25 6 |
5.1 06. 323 |
6 5.1 58 .75 |
1.3 10. 214 |
320 .32 1 |
20. 769 .66 4 |
3.5 89. 954 |
2.0 70. 932 - |
- | - | - | ( 60. 129 .46 6) |
136 .26 11 5.5 |
|
| Ca ital p ex pen ses |
5.2 25. 897 |
1.9 99. 643 |
91. 150 |
4 .12 8.1 38 |
24. 541 |
42. 730 |
1 0.8 33. 593 |
152 | 141 .94 0 - |
- | - | - | 183 .55 2 |
22. 671 .33 6 |
|
| De cia tion pre s |
1.3 52. 891 |
3.6 54. 815 |
187 .50 1 |
2.8 81. 517 |
55. 401 |
41. 403 |
4.5 70. 724 |
313 | 158 .36 5 - |
- | - | - | 179 .03 1 |
13. 081 .96 1 |
|
The line "Turnover" includes Sales, Service Rendered and the amount of about 11.894.847 Euros (11.392.995 Euros as of December 31, 2015) related to equipment rentals accounted in Other Operating Income (Note 32).
The column "Eliminations" mainly includes the elimination of transactions between Group companies included in consolidation, mainly belonging to Vehicles segment.
(Amounts in Euros)
The detail of sales and services rendered by geographic markets, during the years ended as of December 31, 2016 and 2015, was as follows:
| 2016 | 2015 | |||||
|---|---|---|---|---|---|---|
| Market | Amount | % | Amount | % | ||
| National | 290.818.846 | 86,31% | 284.558.320 | 89,12% | ||
| Belgium | 34.807.547 | 10,33% | 24.836.222 | 7,78% | ||
| African Countries with Official Portuguese Language | 11.063.775 | 3,28% | 9.387.941 | 2,94% | ||
| Spain | 55.542 | 0,02% | 39.503 | 0,01% | ||
| Germany | 10.306 | 0,00% | 8.961 | 0,00% | ||
| United Kingdom | 5.705 | 0,00% | 225.305 | 0,07% | ||
| Others | 194.701 | 0,06% | 251.290 | 0,08% | ||
| 336.956.422 | 100,00% | 319.307.542 | 100,00% | |||
As of December 31, 2016 and 2015, the caption "External supplies and services" was as follows:
| 2016 | 2015 | |
|---|---|---|
| Subcontracts | 1.795.240 | 1.888.171 |
| Specialized Services | 16.601.974 | 15.069.044 |
| Professional Services | 5.405.855 | 5.188.763 |
| Advertising | 8.196.141 | 7.008.404 |
| Vigilance and Security | 407.709 | 403.910 |
| Professional Fees | 776.689 | 791.266 |
| Commissions | 169.784 | 195.711 |
| Repairs and Maintenance | 1.645.796 | 1.480.990 |
| Materials | 825.519 | 748.861 |
| Utilities | 2.995.753 | 3.008.991 |
| Travel and transportation | 2.822.848 | 2.588.379 |
| Traveling expenses | 1.482.225 | 1.392.822 |
| Personnel transportation | 91.275 | 100.174 |
| Transportation of materials | 1.249.348 | 1.095.383 |
| Other supplies | 12.064.912 | 13.113.301 |
| Rent | 2.620.551 | 2.651.292 |
| Communication | 754.456 | 648.714 |
| Insurance | 1.067.100 | 1.247.558 |
| Royalties | 334.109 | 339.332 |
| Notaries | 30.404 | 36.908 |
| Cleaning and comfort | 680.326 | 699.576 |
| Others Services | 6.577.966 | 7.489.921 |
| 37.106.246 | 36.416.747 |
(Amounts in Euros)
Payroll expenses are decomposed as follows:
| 2016 | 2015 |
|---|---|
| 550.505 | 550.505 |
| 25.799.158 | 26.402.788 |
| 1.163.199 | 1.017.801 |
| 843.701 | 325.200 |
| 7.021.499 | 6.422.571 |
| 437.571 | 345.064 |
| 3.549.373 | 3.609.363 |
| 39.365.006 | 38.673.292 |
During 2016 and 2015, the average number of personnel was as follows:
| Personnel | 2016 | 2015 |
|---|---|---|
| Employees | 1.033 | 1.069 |
| Workers | 472 | 498 |
| 1.505 | 1.567 | |
As of December 31, 2016 and 2015, the caption "Other operating income" was as follows:
| Other operating income | 2016 | 2015 |
|---|---|---|
| Lease Equipment | 11.888.847 | 11.386.995 |
| Guarantees recovered and other operating expenses | 10.999.079 | 12.404.517 |
| Rents charged | 4.010.010 | 3.303.270 |
| Commissions | 3.613.056 | 3.736.109 |
| Work for the Company | 3.254.219 | 3.229.257 |
| Expenses recovered | 2.722.771 | 1.552.759 |
| Subsidies | 2.588.603 | 2.424.126 |
| Advertising expenses and sales promotion recovered | 2.102.453 | 2.081.026 |
| Services provided | 1.499.843 | 2.074.004 |
| Gains in the disposal Tangible Fixed Assets | 452.495 | 194.820 |
| Compensation claims | 50.914 | 2.338.020 |
| Corrections on the previous exercises | 32.230 | 33.699 |
| Capital gains in financial investments | - | 1.470.075 |
| 43.214.520 | 46.228.677 | |
From the table presented above, we have:
As of December 31, 2016 and 2015, the caption "Other operating expenses" was as follows:
| 2016 | 2015 | |
|---|---|---|
| Taxes | 1.027.802 | 974.081 |
| Bad debts | 214.491 | 3.551 |
| Losses in other non financial investments | 70.212 | 942.212 |
| Losses in inventories | 59.651 | 24.217 |
| Prompt payment discounts granted | 3.541 | 10.096 |
| Losses in other investments | 63 | 6.755 |
| Fines and penalties | 197.735 | 215.355 |
| Corrections to previous years | 98.066 | 124.316 |
| Subscriptions | 23.766 | 23.987 |
| Donations | 257.650 | 3.548 |
| Others | 1.005.611 | 672.437 |
| 2.958.588 | 3.000.555 | |
Consolidated net financial results as of December 31, 2016 and 2015 were as follows:
| Expenses and Losses | 2016 | 2015 |
|---|---|---|
| Interest | 1.885.467 | 1.750.929 |
| Other Financial Expenses | 757.818 | 442.710 |
| 2.643.285 | 2.193.639 | |
| Income and Gains | 2016 | 2015 |
|---|---|---|
| Interest | 280.424 | 33.257 |
| Other Financial Income | 66.107 | 55.230 |
| 346.531 | 88.487 | |
As of December 31, 2016, the caption "Other Financial Income" includes derivatives' fair value changes on the amount of 66.107 Euros.
(Amounts in Euros)
We summarize in the table below a resume of financial instruments of Toyota Caetano Group as of December 31, 2016 and 2015:
| Note | Financial Assets | Financial Liabilities | |||
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | ||
| Derivate Financial Instruments | 25 | - | - | 28.425 | 94.532 |
| Available for sale Financial Assets | 9 | 3.483.128 | 3.463.450 | - | - |
| Accounts Receivable | 11 | 57.920.456 | 56.877.240 | - | - |
| Other Debtors | 12 | 2.999.881 | 3.146.581 | - | - |
| Bank Loans | 18 | - | - | 47.941.048 | 46.752.631 |
| Leasing | 18 | - | - | 20.278.406 | 17.040.409 |
| Overdrafts | 18 | - | - | 1.001.251 | 20.276 |
| Other Creditors | 20 | - | - | 1.095.835 | 1.265.885 |
| Accounts Payable | 19 | - | - | 35.509.231 | 36.237.691 |
| Cash and Cash Equivalents | 15 | 14.556.190 | 11.364.954 | - | - |
| 78.959.655 | 74.852.225 | 105.854.196 | 101.411.424 | ||
Financial Instruments at Fair Value
| Note | Financial Assets | Financial Liabilities | |||
|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | ||
| Derivate Financial Instruments Available for sale Assets |
25 9 |
- 3.483.128 |
- 3.463.450 |
(28.425) - |
(94.532) - |
| 3.483.128 | 3.463.450 | (28.425) | (94.532) |
| Available for sale Assets | Derivate Financial Instruments | Level | |||
|---|---|---|---|---|---|
| At fair value | At cost | Cash Flow Hedge Accounting |
Negotiation | ||
| Cimóvel Fund Others |
3.416.391 - |
- 66.737 |
- - |
- - |
1) 3) |
| Interest rate swap | - | - | - | (28.425) | 2) |
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:
| Impact on equity | Impact on Income | |||||
|---|---|---|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 | |||
| Derivate Financial Instruments | - | - | 66.107 | 55.230 | ||
| Available for sale Financial Assets | 19.678 | 343.816 | - | - | ||
| 19.678 | 343.816 | 66.107 | 55.230 | |||
During the period of 2016, the minimum payments for operational leases amounted to approximately 5,7 million Euros (6,4 million Euros in 2015). Of that amount, 2,1 million relate to payments with maturity of one year, 3,4 million relate to payments to occur in the period between two to five years and 118 thousand Euros relate to payments of maturity of more than five years.
| Minimum payments of operational lease | 2016 | 2015 |
|---|---|---|
| Not more than one year | 2.149.610 | 2.204.088 |
| More than one year and no more than five | 3.409.638 | 4.172.432 |
| More than five years | 118.370 | 62.214 |
| 5.677.618 | 6.438.734 | |
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:
| Co mm erc |
ial De bts |
Pro du |
cts | Fix ed as |
set s |
Se rvic |
es | Ot | he rs |
|
|---|---|---|---|---|---|---|---|---|---|---|
| Co mp an y |
Re iva ble ce |
Pa ab le y |
Sa les |
Pu rch as es |
Pu rch as es |
Dis als p os |
Re nd d ere |
Ob tai d ne |
Co sts |
Inc om e |
| Am orim Br ito & S ard inh Lda a, |
- | - | - | - | - | - | - | - | - | 1.6 27 |
| Atlâ ntic Co anh ia P de Pes S. A. ortu a - mp gue sa ca, |
5.1 32 |
- | - | - | - | - | - | - | - | 17 |
| Att ion foc - Ld ent us a. |
8 | - | - | - | - | - | - | - | - | 41 |
| ária S.A Au to P artn Imo bili er , |
35 | 13. 788 |
- | - | - | - | - | 165 .44 1 |
- | 71 |
| Ca bo Ve rde Re -Ca Lda nt-a r, |
30. 983 |
114 .65 3 |
87. 931 |
- | - | - | 1.1 70 |
195 .32 9 |
- | - |
| Ca Act ive ( Su l), Lda eta no |
2.0 45 |
1.0 27 |
- | 15. 885 |
- | - | 1.0 26 |
12. 318 |
- | 288 |
| Ca Ae ic, S.A eta aut no ron |
666 .53 5 |
56. 138 |
846 | - | - | - | 30. 565 |
45. 641 |
- | 461 .30 2 |
| Ca Bav iera - C érc io d e A mó vei S.A eta uto no om s, |
922 .88 1 |
230 .18 0 |
3.0 34. 528 |
460 .56 1 |
- | 11. 902 |
13. 541 |
201 .20 0 |
234 .60 3 |
675 .54 6 |
| Ca City e A ctiv e ( No rte) S.A eta no , |
598 .24 3 |
86. 478 |
781 .12 5 |
132 | - | - | - | 22. 323 |
31. 324 |
32. 439 |
| Ca Driv Sp e U rba S.A eta ort no e, n, |
229 .89 4 |
350 .04 4 |
16. 309 |
6.2 14 |
251 .78 0 |
320 .44 6 |
93. 133 |
329 .72 6 |
880 | 246 .45 0 |
| Ca S.A eta Ene no rgy , |
10. 822 |
736 | 2.0 04 |
733 | - | - | 1.7 90 |
- | - | 9.0 52 |
| Ca Fór la, S.A eta no mu |
27. 414 |
582 .08 5 |
19. 136 |
871 .03 2 |
19. 077 |
260 .33 1 |
79. 572 |
- | 1.2 20 |
122 .14 6 |
| Áfr Ca S.A eta For la E ast ica no mu , |
52 | - | - | - | - | - | - | - | - | 45 |
| Ca Fór la M mb iqu e S .A. eta no mu oça |
484 | - | - | - | - | - | - | - | - | 544 |
| Ca For la S l, S.A .U. eta no mu ene ga |
- | - | - | - | - | - | - | 46 | 520 | - |
| Áfr Ca Fór la W ica S.A eta est no mu , |
- | - | 223 | - | - | - | - | - | - | 183 |
| Ca Mo S.A eta tors no , |
16. 240 |
16. 070 |
- | 15. 879 |
- | - | - | 56. 808 |
- | 171 .59 7 |
| Áfr Ca S.A eta Mo ica no ve , |
21 | - | - | - | - | - | - | - | - | 19 |
| Ca On e C eta V, Lda no |
235 .79 0 |
6.2 01 |
33. 703 |
8.0 99 |
- | - | 47. 938 |
537 | - | 36. 196 |
| Ca eta Pa rts, Ld no a. |
88. 035 |
1.3 62. 242 |
1.6 37. 191 |
6.1 10. 823 |
- | - | 1.6 55 |
29. 001 |
- | 149 .31 6 |
| Ca Pow S.A eta no er, |
58. 256 |
- | 3.3 55 |
1 | 19. 774 |
21. 628 |
24. 706 |
- | - | 175 .69 5 |
| Ca Re tail ( S.G .P.S .), S.A eta no |
46. 811 |
- | 505 | - | - | - | - | 1.8 83 |
- | 100 .44 0 |
| Ca Sta S.A eta no r, |
42. 752 |
32. 646 |
13. 871 |
124 .43 8 |
- | - | 13. 557 |
51. 760 |
- | 12. 132 |
| Ca Tec hni k, Lda eta no |
30. 430 |
- | - | 47. 636 |
14. 150 |
17. 992 |
- | 14. 188 |
141 | 173 .31 2 |
| Ca noB - F abr ica ão de Ca aria S.A eta us ç rroç s, |
6.9 02. 135 |
93. 464 |
39. 813 |
76. 053 |
- | - | 11. 977 |
115 .36 9 |
26 | 3.1 15. 431 |
| Ca S.A ets u P ubl icid ade , |
3.5 85 |
767 .58 2 |
61. 762 |
299 | - | - | 17. 625 |
2.5 75. 123 |
3.9 00 |
1.9 76 |
| Ca - C S.A lus érc io d e A mó vei uto rp om s, |
56. 275 |
5.0 61 |
92. 675 |
112 .07 4 |
- | - | 137 .20 8 |
1.0 40 |
- | 220 .30 7 |
| Ce l So lar de Ca nho S.A ntra sta s, |
25 | - | - | - | - | - | - | - | - | 20 |
| Ch oic e C S.A ar, |
2.2 85 |
- | - | - | - | - | - | - | - | 13 7.7 |
| CO CIG A - Co ões Ci vis de Ga ia, S.A nst ruç |
4.5 71 |
89. 926 |
- | - | - | - | - | 57. 859 |
- | 1.9 69 |
| Dic De ão, S. A. uor e - cor aç |
25 | - | - | - | - | - | - | - | - | 20 |
| Din âm ico - E ias Re áve is, Lda rte nve ner g nov |
4.0 04 |
- | - | - | - | - | - | - | - | |
| e C érc mó S.A Fin log - A lug io d e A uto vei uer om s, |
310 .62 5 |
147 .17 3 |
3.3 09. 371 |
909 .10 5 |
- | - | 291 .94 6 |
1.1 16. 581 |
31. 713 |
103 .78 0 |
| Sa Ca Fun daç ão lva dor eta no |
617 .78 5 |
21. 902 |
- | - | - | - | - | - | - | 99 |
| Glo bal ( S.G .P.S .), S.A tt, wa |
25 | - | - | - | - | - | - | - | - | 90 |
| Gru Sa lva dor Ca ( S.G .P.S .), S.A eta po no, |
- | 2.4 49 |
- | - | - | - | - | - | - | 122 |
| Gu érin - R Ca r ( Do is), Ld ent -a- a. |
295 .00 2 |
34. 480 |
32. 832 |
17. 201 |
- | - | 924 8 .75 |
32. 991 |
- | 94. 035 |
| Gu erin Re nt A Ca S.L r, |
97 | - | - | - | - | - | - | - | - | 97 |
| Ibe rica r - S oci eda d Ib eric a d el A vil, S. A. uto mo |
17. 632 |
- | - | - | - | - | - | - | - | 17. 632 |
| ( Am in Eu ) ts ou n ros |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Co mm erc |
ial De bts |
Pro du |
cts | Fix ed |
set as s |
Se rvic |
es | Ot | he rs |
|
| Co mp an y |
Re iva ble ce |
Pa ab le y |
Sa les |
Pu rch as es |
Pu rch as es |
Dis als p os |
Re nd d ere |
Ob tai d ne |
Co sts |
Inc om e |
| Ibe rica r A Ni S.A uto pon , |
872 | - | - | - | - | - | - | - | - | 97 |
| Ibe rica r B elo Pre miu S.L arc na m, |
1.9 33 |
- | - | - | - | - | - | - | - | 1.9 33 |
| Ibe rica r B S.L t, ene |
291 | - | - | - | - | 945 .81 0 |
- | - | - | 1.1 39 |
| Ibe rica r C adi S.A , |
389 | - | - | - | - | - | - | - | - | 701 |
| Ibe rica r C ro A S.L ent uto , |
389 | - | - | - | - | - | - | - | - | 389 |
| r C S.A Ibe rica oto uzc om r, |
291 | - | - | - | - | - | - | - | - | 291 |
| Ibe rica r Fo la C de Gib ralt S.L rmu am po ar, |
291 | - | - | - | - | - | - | - | - | 696 |
| Ibe rica r G S.L est oso , |
583 | - | - | - | - | - | - | - | - | 943 |
| Ibe rica r M r M ala oto ga |
194 | - | - | - | - | - | - | - | - | 194 |
| Ibe rica r M rs C ádi S.L oto z, |
389 | - | - | - | - | - | - | - | - | 389 |
| Ibe rica r M ovi l Su S.L r, |
97 | - | - | - | - | - | - | - | - | 97 |
| Ibe rica r M ovi l, S.L |
194 | - | - | - | - | - | - | - | - | 314 |
| Qu S.L Ibe rica r R mb ios eca er, |
97 | - | - | - | - | - | - | - | - | 97 |
| Ibe rica r R eic S. A. om sa, |
291 | - | - | - | - | - | - | - | - | 647 |
| Ibe rica r Te chn ik, S.A |
194 | - | - | - | - | - | - | - | - | 194 |
| Lav orA - A dm inis ão e C ulto ria de Em S.A uto traç ons pre sas , |
- | 5.4 68 |
- | - | - | - | - | 22. 948 |
- | 17 |
| Lid So luc ion S. L. era es, |
1.2 48 |
- | - | - | - | - | - | 107 .62 0 |
- | 1.4 42 |
| Lus ilec - V eíc ulo Eq uip S. A. tra ent s e am os, |
78. 637 |
162 .84 9 |
51. 993 |
47. 039 |
237 .68 0 |
- | 75. 707 |
372 .87 8 |
3.5 96 |
71. 061 |
| MD S A - M edi ão de Se S. A. uto aç gur os, |
20. 321 |
- | 1.0 03 |
- | - | - | 344 | 593 .11 2 |
- | 5.2 41 |
| Mo vic Mo vim ent ão Ind ust rial Lda arg o - aç , |
1.5 44 |
232 .28 1 |
10 | 27. 683 |
- | - | 5.0 37 |
43. 011 |
537 .97 8 |
3.0 88 |
| Pla tini V. H. - Im ão de Au óve is, S.A taç tom um por |
8.3 16 |
14 | - | - | - | - | 1.3 40 |
- | - | 26. 955 |
| P.O e O S.A .A. L. - Pa vim ent ões bra s A sór ias aç ces , |
17. 806 |
- | - | - | - | - | - | - | - | - |
| Po rtia - C érc io I cio nal e P arti cip ões S.A nte nga om rna aç , |
89. 244 |
11. 641 |
3.0 53 |
42. 494 |
- | 1.8 45 |
44. 830 |
88. 298 |
- | 71. 138 |
| PV Lo iral - P rod ão de Ene ia, Lda uç rg |
25 | - | - | - | - | - | - | - | - | 20 |
| RA RC ON - A itec e C ulta dor ia, S.A tura rqu ons |
84 | 14. 691 |
- | - | - | - | - | 72. 490 |
15 | 221 |
| Rig Co ltor ia e Ge stã S.A or - nsu o, |
117 .91 4 |
889 .73 2 |
691 | - | 174 .44 3 |
- | 141 .91 5 |
4.2 47. 191 |
16. 327 |
371 .11 0 |
| Ro ber t H uds LT D on, |
23. 705 |
778 | 1.9 89 |
- | - | - | - | - | 778 | 1.3 90 |
| Sa Ca - ( S.G .P.S .), S.A lva dor eta - A uto no |
84 | - | - | - | - | - | - | - | - | 68 |
| Áfr Sa Ca S.G .P.S S.A lva dor eta Au to ica ( .), no , |
66 | - | - | - | - | - | - | - | - | 96 |
| Sa lva dor Ca Eq uip S. A. eta ent no am os, |
21 | - | 442 | - | - | - | - | - | - | 19 |
| Sa lva dor Ca Ind úst ria ( S.G .P.S .), S.A eta no |
- | - | - | - | - | - | - | - | - | 252 |
| SIM OG A - So cie dad e Im obi liár ia d e G aia S.A , |
1.0 36 |
- | - | - | - | - | - | - | - | - |
| So l G n W S. L. att, ree |
- | - | - | - | - | - | - | - | - | 390 |
| SP RA MO - P ubl icid ade & Ima S.A gem , |
- | 681 | - | - | - | - | - | - | - | - |
| r - S Co óve S.A Tov ica oci eda de rcia l de Au tom is, me |
12. 553 |
- | - | - | - | - | - | - | - | - |
| So S.A Tu risp aiv cie dad e T urís tica Pa ive a - nse , |
135 | - | - | - | - | - | - | - | 1.3 20 |
|
| Áfr VA S ica ( S.G .P.S .), S.A |
105 | - | - | - | - | - | - | - | - | 88 |
| Va s C abo Ve rde So cie dad e U nip oal S.A ess , , |
4.5 38 |
- | 21. 172 |
37. 678 |
- | 15. 417 |
74. 380 |
549 | - | 115 .01 2 |
| 11. 610 .81 1 |
5.3 32. 460 |
9.2 47. 533 |
8.9 31. 059 |
716 .90 4 |
1.5 95. 371 |
2.0 35. 720 |
10. 573 .26 1 |
863 .02 1 |
6.6 08. 799 |
|
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 Balance Sheet:
As of December 31, 2016 and 2015, Toyota Caetano Group had assumed the following financial commitments:
| Commitments | 2016 | 2015 |
|---|---|---|
| Credits | 105.190 | 110.504 |
| Guarantees of Imports | 5.500.000 | 7.000.000 |
| 5.605.190 | 7.110.504 | |
At December 31, 2016 and 2015, the financial commitments classified as "Guarantees for Imports" the amount of 4 million Euros is related with guarantees on imports provided to Customs Agency.
Following the 29,9 million Euros debt contracting process occurred in 2012, remaining, at the present date, approximately 17 million Euros outstanding as a liability in the consolidated statement of financial position (see note 18), the Group has granted mortgages to the respective financial institutions, valued at about 25,1 million Euros, at the financing date.
According to the legislation, the Company's tax returns are subject to review and correction by the tax authorities during a period of four years unless there are tax losses, have been granted tax benefits or are ongoing inspections complaints or challenges, in which case, depending on the circumstances, the deadlines are extended or suspended . The tax returns for the years 2012 to 2016 may still be subject to review. Statements regarding the Social Security may be revised over a period of five years.
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.
The judicial claim against collective dismissal was completed in 2016 with the existence of agreements. The board 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.
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 Company accounts will be reduced or nil.
Meanwhile, and according to the legislation in force (Dec./Law 196/2003), the Company 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 2016.
The remuneration of the board members during the years 2016 and 2015, was as follows:
| Board Members | 2016 | 2015 |
|---|---|---|
| Board of Directors Fixed remunerations |
550.505 | 550.505 |
The remuneration of the Statutory Auditor, PricewatherhouseCoopers & Associados – S.R.O.C., Lda. for December 31, 2016 and 2015, was as follows:
| 2016 | 2015 | |
|---|---|---|
| Total fees related statutory audit | 59.670 | 59.670 |
| Total fees related assurance services | 3.500 | - |
| 63.170 | 59.670 | |
(Amounts in Euros)
Since the conclusion of the year 2016 and up to date no significant events occurred.
The consolidated financial statements were approved by the Board of Directors on March 27, 2017.
According to the Portuguese Commercial Companies Code, it is possible the amended for these Financial Statements, after approval by the Board of Directors.
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 NOBUAKI FUJII 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 2016, 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 2016.
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
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.
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, 2016;
b) Approve the proposal for the net result application, contained in the management report of the Board of Directors.
Vila Nova de Gaia, 27th March 2017
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, 27th March 2017
(Free translation from the original in Portuguese)
We have audited the financial statements of Toyota Caetano Portugal, S.A.(the Entity), which comprise the statement of financial position as at December 31, 2016 (which shows total assets of Euro 253,151,094 and total shareholders' equity of Euro 126,376,712 including a net profit of Euro 5,950,756), 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 December 31, 2016, 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.
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.
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
Disclosures related with revenue presented in the notes to the consolidated financial statements 2.3.o), 26 and 27.
The Company's revenue amounts to Euro 274.4 million This amount includes Euro 18.5 million referent to sales occurred in December.
According to IAS 18, revenue is recognized in the income statement when the significant risks and rewards of ownership are transferred from the seller to the buyer, it is probable that the economic benefits associated with the transaction will flow to Toyota Caetano Portugal and the amount of revenue can be measured reliably.
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 significant risks and rewards to the client, and also because the mentioned manual adjustment results from a manual procedure.
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:
Disclosures related with inventory presented in the notes to the consolidated financial statements 2.3.e) and 12.
The Company presents in the consolidated statement of financial position, inventory amounting to Euro 52.1 million, representing about 21% of total assets. The mentioned amount includes Euro 40.5 million related with merchandise, which are measured at the lower of average acquisition cost and net realizable value.
The amount of merchandise contains Euro 7.4 million referent to used cars, without any cumulative impairment loss being recognized.
According to IAS 2, merchandise and raw and subsidiary materials are measured at average cost, which is lower that their respective market value. The inventory cumulative impairment losses reflect the difference between the acquisition cost and the net realizable value.
This issue is a key audit matter because of the magnitude of the amount of used cars inventory as well as the judgement inherent to assessment of impairment losses. There is the risk of the amount of recognized cumulative impairment losses not totally reflects the effective loss and that the difference between both amounts is material.
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 following audit procedures:
Test of detail to the valuation of used cars inventory as of December 31, 2016
Validation of valuation assumptions, including, among other procedures, analysis of historical commercial information and comparison between the Company's expectations concerning the net realizable value of used cars and market analysts' expectations.
Assessment of the controls implemented by the Company in order to minimize days in inventory related with used cars.
Analytical review to margins of used cars as well as to inventory turnover related with used cars.
Analysis of used cars' sales occurred after December 31, 2016 in order to identify situations in that the net realizable amount if lower than the carrying amount as of December 31, 2016.
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;
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.
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.
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 April 23, 2010 for the period of 2010, having remained in functions until the current period. Our last appointment was in the Shareholders' General Meeting of April 30, 2015 for the period from 2015 to 2018.
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 March 27, 2017.
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.
March 27, 2017
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. represented by:
José Miguel Dantas Maio Marques, R.O.C.
(Free translation from the original in Portuguese)
We have audited the consolidated financial statements of Toyota Caetano Portugal, S.A. (the Group), which comprise the consolidated statement of financial position as at December 31, 2016 (which shows total assets of Euro 275,777,869 and total shareholders' equity of Euro 127,670,973 including a net profit of Euro 5,950,756), 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 December 31, 2016, 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.
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
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 Matters | Audit approach |
|---|---|
| Revenue cut-off | |
| Disclosures related with revenue presented in the notes to the consolidated financial statements 2.3.o), 28 and 29. |
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 Group's revenue amounts to Euro 337 million. This amount includes Euro 40 million referent to sales occurred in December. |
- Identification and test of key controls related with revenues and receivables |
| According to IAS 18, revenue is recognized in the income statement when the significant risks and rewards of ownership are transferred from the seller to the buyer, it is probable that the economic benefits associated with the transaction will flow to the Group Toyota |
processes; - Inventory counting assistance and analysis of adjustments made to inventory; |
| Caetano Portugal and the amount of revenue can be measured reliably. |
- Tests of detail to the cut-off assertion 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 |
- Tests of detail to revenue manual adjustments; |
| 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 significant risks and rewards to the client, and also because the mentioned manual adjustment results from a |
- Analytical procedures to the caption sales (variance analysis against last year and budget) |
manual procedure.
Disclosures related with inventory presented in the notes to the consolidated financial statements 2.3.e) and 10.
The Group presents in the consolidated statement of financial position, inventory amounting to Euro 82.8 million representing about 30% of total assets. The mentioned amount includes Euro 72.6 million related with merchandise, which are measured at the lower of average acquisition cost and net realizable value.
The amount of merchandise contains Euro 32.6 million referent to used cars, being the respective cumulative impairment losses of Euro 1.5 million.
According to IAS 2, merchandise and raw and subsidiary materials are measured at average cost, which is lower that their respective market value. The inventory cumulative impairment losses reflect the difference between the acquisition cost and the net realizable value.
This issue is a key audit matter because of the magnitude of the amount of used cars inventory as well as the judgement inherent to assessment of impairment losses. There is the risk of the amount of recognized cumulative impairment losses not totally reflects the effective loss and that the difference between both amounts is material.
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 following audit procedures:
Test of detail to the valuation of used cars inventory as of December 31, 2016
Validation of valuation assumptions, including, among other procedures, analysis of historical commercial information and comparison between the Group's expectations concerning the net realizable value of used cars and market analysts' expectations.
Assessment of the controls implemented by the Group in order to minimize days in inventory related with used cars.
Analytical review to margins of used cars as well as to inventory turnover related with used cars.
Analysis of used cars' sales occurred after December 31, 2016 in order to identify situations in that the net realizable amount if lower than the carrying amount as of December 31, 2016.
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;
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;
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.
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.
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 April 23, 2010 for the period of 2010, having remained in functions until the current period. Our last appointment was in the Shareholders' General Meeting of April 30, 2015 for the period from 2015 to 2018.
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 March 27, 2017.
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.
Porto, March 27, 2017
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 there was no change on the remuneration of the Governing Bodies during the year 2016, thus having been complied the proposals of this Committee approved in the General Meeting of Shareholders of April 28, 2016.
In view of the current economic climate and given the forecasts of activity and results for the financial year 2017, provided by the Management of the Company, 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 2017 be updated in a range of 1% to 2%.
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 2016, this component of remuneration did not exist, and therefore it was accomplished the proposal of this Committee of do not exceed 2% of distributable results.
Therefore and referring to paragraph b) of number 3 of article 2 of Law 28/2009 of 19 June, this Remuneration Committee propose the maintenance of the criteria established for 2017, namely that the variable remuneration of the Executive Members of the Board of Directors as a whole does not exceeds 2% of the profits distributable determined in the financial year of 2016. 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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