Annual Report • Apr 9, 2010
Annual Report
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Manuel de Oliveira Marques - President José Lourenço Abreu Teixeira – Vice-President Manuel Fernando Monteiro da Silva – Member Maria Olívia Almeida Madureira – Member
José Reis da Silva Ramos – President Hiroyuki Ochiai – Member Andrea Formica – Member Maria Angelina Martins Caetano Ramos – Member Salvador Acácio Martins Caetano – Member Miguel Pedro Caetano Ramos - Member Rui Manuel Machado de Noronha Mendes - Member
Shigeki Enami – Alternate Member
José Jorge Abreu Fernandes Soares - President Kenichiro Makino - Member António Maia Pimpão on behalf of: António Pimpão & Maximino Mota, SROC Fernando Sousa Matos Pires – Alternate Member
António Manuel Martins Amaral on behalf of: Deloitte & Associados, Sociedade de Revisores Oficiais de Contas, SA. Carlos Luís Oliveira de Melo Loureiro - Alternate
| (Euros) | |||
|---|---|---|---|
| 2009 | 2008 | 2007 | |
| SALES | 294.821.381 | 405.392.814 | 424.634.355 |
| CASHFLOW | 18.085.155 | 13.171.388 | 20.189.612 |
| NET INCOME | 5.443.819 | 3.176.750 | 10.706.466 |
| INTEREST AND OTHERS | 2.510.602 | 4.745.564 | 3.122.414 |
| PERSONNEL EXPENSES | 18.700.223 | 18.470.040 | 18.787.910 |
| NET INVESTMENT | 12.073.653 | 12.345.312 | -13.306.602 |
| GROSS WORKING CAPITAL | 42.953.955 | 37.839.995 | 46.121.076 |
| GVA | 43.421.053 | 44.097.593 | 52.842.063 |
| SALES UNITS | 16.564 | 23.855 | 24.012 |
| NUMBER OF EMPLOYEES | 675 | 707 | 698 |
Companies are the People that work in them. They are shared experiences. They are the sum of all successes.
Toyota Caetano Portugal is proof of that. The solid work of a man who, after almost 65 years of total devotion, decided to pass it on to a new generation. This is a legacy with a long future, because its nature goes beyond time and space. It is a lasting feeling like being in a family, sharing values. It is a project made up of many projects.
While, on the one hand, it is with deep gratitude that I welcome the work of our Founder Salvador Fernandes Caetano, on the other hand, I feel an immense sense of responsibility for continuing this work that we are all so proud of.
Highly valued both in Portugal and beyond our borders, widely recognised in public and in private as an example of business excellence, economic sustainability and social accountability, the group of companies that form Toyota Caetano Portugal demands professionalism, rigour and creativity of all of those who are involved in its daily life.
We live in an environment of few certainties, but we do have one: we will face the future committed to robust, transparent and entrepreneurial management of our company. Our mission is to continue to be a reference model. We have a strategy for sustainable development. We are a team that is motivated by the ambition to do more and to do it better. The quality we produce today will determine the quantity of our production tomorrow.
In this, the aftermath of a period of great social and economic difficulties for our country, we – for our part – are at the start of a new cycle, one of renewed confidence and business growth.
I am confident! I'm confident because I believe in People and that success is in sharing.
José Reis da Silva Ramos President
The serious economic state of affairs verified all over the world and particularly affecting the automotive sector, has definitely marked the year of 2009 at Ovar Plant.
In 2009, Toyota production was of 1,967 units, corresponding to a 67% fall compared with the same period of the previous year. 1,578 Dyna units were produced (-70% than in the previous year) and 305 Hiace units (- 47%).
The external market represented only 34% of Dyna's production, which is a fall of 32% in the weight of exports compared with 2008.
Regarding Mini Buses business, in 2009 the production was of 86 units, corresponding to a fall of 44% in comparison to the same period of 2008.
The external market, as was the case last year, was the main destination for production with a weight of 58%, in spite of an 8% drop compared with 2008.
Regarding conversions and in 2008, 5,677 units were produced, a 44% fall in comparison to 2008.
| Production | 2009 | 2008 | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|
| Physical Toyota Units | 1,967 | 5,947 | 4,924 | 3,831 | 3,920 |
| No. of Homogenised Units | 4,026 | 9,429 | 8,872 | 7,669 | 8,742 |
| Physical Optimo Units | 86 | 154 | 160 | 132 | 148 |
| Conversion Units | 5,677 | 10,046 | 11,682 | 6,865 | 6,726 |
| Total employees | 340 | 360 | 343 | 325 | 321 |
As a contingency measure, in March 2009 the Ovar plant joined the Automotive Sector Support Plan (PASA – Plano de Apoio ao Sector Automóvel), and then later renewed the agreement which will end in March 2010. This agreement facilitates an intensification of professional training programmes for our employees, to increase their skills and competencies, with a special focus on practical on-the-job training (OJT). 165 employees obtained certification for high school (9th and 12th years of the Portuguese Education System) under the Recognition, Validation and Certification of Competences system (RVCC – Reconhecimento, Validação e Certificação de Competências) and this process continues in 2010.
In parallel, the company established an agreement with the employees for the creation of an Hour Bank in order to allow greater work flexibility.
Other 2009 highlights: start of the activity relating to Quality Control Cycles; renewal of environmental certification ISO 14001:2004; transition to quality standard ISO 9001:2008; audit to Toyota Dyna product, with the overall objective of 0.20 dpu having been successfully achieved; the International Toyota Ecology Prize – Toyota Global Eco Award, for the project 'Sustainable Factory: Zero Waste'; the award granted to the Private Fire-fighters Team by the League of Portuguese Fire-fighters (Gold Level 25 years); and the international design prize for the Toyota Optimo Seven Mini-bus (Good Design Award).
| Deviation | |||||
|---|---|---|---|---|---|
| Market | 2009 | 2008 | 2009 vs. 2008 | ||
| Qt. | % | ||||
| Light Passenger Vehicles | 161,013 | 213,389 | -52,376 | -24.5% | |
| Light Commercial Vehicles | 38,906 | 55,404 | -16,498 | -29.8% | |
| Heavy Commercial Vehicles | 3,841 | 6,334 | -2,493 | -39.4% | |
| Total | 203,760 | 275,127 | -71,367 | -25.9% |
Source: ACAP (License Plates)
The development of Motor vehicles market in Portugal in 2009 was characterised by a number of negative factors:
•Slow-down in economic activity in Portugal and world-wide;
•Negative growth of Gross Domestic Product (GDP) at -2.7%;
•Decline in Private Consumption (-0.9%), affecting particularly the durable goods sector, which includes the automotive sector.
•Very sharp fall in investment: -11.7%;
•Very sharp fall in Exports (-13%). Exports have been the motor of the Portuguese economy in recent years;
•Gradual increase in the Unemployment Rate (it reached 10.3% towards the end of 2009);
•Credit restrictions and more expensive credit – with impact in the automotive sector.
Increase of ISV – Imposto sobre Veículos (tax on vehicles) (mainly in Diesel Power Units, which stand for approximately 70% of the market sales) registered in January 2009.
In 2009, the automotive market of new vehicles ended the year with 203,760 units sold – a fall of 25.9% compared to 2008. The light passenger vehicles market, which represents around 79% of total sales, ended the year with 161,013 units, less 24.5% compared to 2008. The picture for light commercial vehicles was even bleaker with a yearend total of 38,906 units, a drop of 29.8%. In the heavy commercial vehicles sector, sales reached only 3,841 units, which is a reduction of 39.4% in comparison with the same period in the previous year. These are the lowest figures for the last 22 years – and we have to go back to 1988 to find a smaller market, in an era when quotas were in place to protect national production of certain models.
Another relevant factor is the fact that around 25% of light passenger vehicles sales included incentives to the recycling of end-of-life vehicles.
Almost all competing brands in Portugal suffered significant falls in sales in 2009. One has to go down to the 14th place in the list (far from high volume sales) to find a company which registered some growth in units sold.
| 2009 | 2008 | Variation % | |
|---|---|---|---|
| Units | |||
| EU | 18,362,817 | 21,165,009 | -13.2% |
| Portugal | 199,881 | 268,793 | -25.6% |
Source: ACEA
At European level also, and despite all of the incentives provided to replace old vehicles with new ones in most European countries (10 in addition to Portugal), sales of new light passenger and commercial vehicles fell by 13.2% in Europe. Yet, this was a lower fall than the fall registered in the Portuguese market.
| TOYOTA | 2009 | 2008 | 2009 vs. 2008 | |
|---|---|---|---|---|
| Units | % | |||
| Light Passenger Vehicles | 8,824 | 11,200 | -2,376 | -21.2% |
| Light Commercial Vehicles | 3,337 | 5,262 | -1,925 | -36.6% |
| Heavy Commercial Vehicles | 169 | 240 | -71 | -29.6% |
| Total | 12,330 | 16,702 | -4,372 | -26.2% |
Source: ACAP (License Plates)
In 2009, Toyota managed to maintain its global share of 6.1%, with 12,330 units sold, in which we can positively highlight the increase in share of passenger vehicles (5.5% of share and a 0.3% increase on 2008).
When comparing Toyota's and the market's performances, we face different realities if making a separate analysis between Light Passenger Vehicles and Commercial Vehicles.
On the one hand, sales performance of Toyota Light Passenger Vehicles (LPV) was better than that of the market as a whole – LPV sales fell by 21.2% (- 2,376 units sold), while the market fell by 24.5%. That is to say that Toyota increased its market penetration, reaching 5.5% of market share (+0.3 p.p.) with 8,824 units sold. This performance was due to the following factors:
Launch of New Models and of New Generations. Firstly the iQ in March and later the Urban Cruiser in May, brought an expansion into the range of Toyota Light Passenger Vehicles offer. The launch of the new Avensis generation in February, the new Verso generation in May and the Prius in September rejuvenated the Range, increasing the competitiveness of our brand.
The success of our Sales Promotion Campaign, which took place between May and July last year, and covered three models of great importance in the range of Toyota Passenger Vehicles – the Yaris, the Auris and the Corolla.
Yet, Toyota's Commercial Vehicles (CV) ended 2009 with a worse performance than the market. While the market fell 30.8%, Toyota's drop in performance was even more pronounced at -36.3%. The sectors in which we have the strongest presence – Chassis cabs (Toyota Dyna) and Pick-up trucks (Toyota Hilux) – were particularly affected by the fall in business investment, especially in the civil construction sector. Nonetheless, and as we approached the end of the year, Toyota started to show signs of recovery, with December's excellent performance – 615 units sold and 12.8% of market share – maintaining the fifth position in the market that was achieved in 2007, with 3,506 units sold and 8.2% (-0.7p.p.) share in the Commercial Vehicles segment. Within Toyota's Commercial Vehicles sales performance in 2009, we highlight the following:
Sales Promotion Campaign which took place between October and December and covered the whole range of Commercial Vehicles.
Keeping leadership in the Chassis cab segment, with Dyna model, produced locally at the Ovar assembly plant.
2008 was marked by a drop in sales within IS Range and the remaining ranges, with the exception of the RX Range. This reduction was a reaction to the economic crisis which also affected the Premium market and Lexus brand. As mentioned above, the only model which registered an increase in sales was RX, due to the launch of the New Generation RX450h in July 2009. The remaining hybrid models were affected to a considerable extent by the wave of launches by our competitor companies and, for this reason, we did not manage to maintain the sales levels reached in 2008.
| Models | 2009 | 2008 |
|---|---|---|
| IS | 198 | 226 |
| GS | 22 | 39 |
| RX | 41 | 34 |
| LS | 5 | 14 |
| TOTAL | 266 | 313 |
For 2010, taking into account the difficult economic background expected, with the premium market maintaining the same values of 2009, our commitment is towards maintaining the sales volumes of the past year. In order to do so, we will introduce new variants of Hybrid SUV RX450h at more competitive prices, and a renewed GS Range with lower CO2 emissions and a price positioning more in line with the current reality of the segment. Finally, we will introduce renewed arguments in the IS Range. This model will continue to represent around 72% of total Lexus sales in 2010.
| Market | Toyota Industrial Equipment | |||||||
|---|---|---|---|---|---|---|---|---|
| Variation | 09 | 08 | Variation | |||||
| 2009 | 2008 | % | Qty. | % | Qty. | % | % | |
| Counter-balanced Forklift Trucks | 1.172 | 1.568 | -25,3 | 285 | 24,3 | 284 | 18,1 | 0,4 |
| Warehouse Equipment | 1.053 | 1.800 | -41,5 | 278 | 26,4 | 176 | 9,8 | 58,0 |
| Total | 2.225 | 3.368 | -33,9 | 563 | 25,3 | 460 | 13,7 | 22,4 |
Source: ACAP
In 2009 the Load Moving Machinery market, like the other business sectors, was deeply affected by the crisis that hit the Portuguese economy and therefore the business tissue, registering a sharp fall of -33.9%, with a total of 2,225 units sold, compared to 3,368 in 2008.
Analysis by type of equipment shows that the fall in Warehouse Equipment was much more pronounced (-41.5%) compared to the fall registered in Counterbalanced Forklift Trucks (-25.3%).
Overall Toyota + BT sales bucked the market trend with a 0.4% growth in counterbalanced forklift trucks (285 units sold) and 58% in warehouse equipment (278 units sold) compared to 2008.
The launch of new models contributed to this performance, as did the expansion of the range and the creation of two large fleet businesses.
In terms of sales ranking Toyota + BT consolidated its market leadership, achieving a share of 25.3%.
Global Sales
Thousand Euro
| Product | Sales 2008 |
Sales 2009 |
Growth % 09/08 |
Management Budget |
% Budget Execution |
|---|---|---|---|---|---|
| Parts/ Accessories | 45,277 | 40,104 | -11.4% | 40,709 | 98.5% |
| Mandatory Services | 2,113 | 1,444 | -31.7% | 1,300 | 111.1% |
| Total | 47,390 | 41,548 | -12.3% | 42,009 | 98.9% |
2009 was marked by the negative state of affairs which inevitably had impacts in the automotive industry.
In 2009, Toyota's After Sales Division invoiced approximately 40 million Euros in parts, accessories and merchandising. This sum represents a fall of 11.4% compared to the same period in the previous year and reflects with accuracy the difficulties of the sector.
Similarly, the sale of mandatory services (namely 'Eurocare', 'Extracare' and 'Euroassistance') also suffered from the crisis. Invoicing for these services, directly related to sales of new vehicles, totalled 1.4 million Euros, 31.7% less than in 2008.
Note: the following analysis refers only to sales of parts, accessories and merchandising (therefore not including the sale of mandatory services).
| Weight (%) in Sales Total | ||||
|---|---|---|---|---|
| 2009 | 2008 | |||
| Genuine Toyota Parts | 85.70% | 74.60% | ||
| Nationally Incorporated Parts | 4.50% | 4.90% | ||
| Accessories * | 9.10% | 19.30% | ||
| Merchandising * | 0.80% | 1.10% |
Distribution of overall sales
* Accessories and Merchandising encompass both genuine and national material.
Genuine Toyota parts sales represent the largest slice of overall sales (85.7%). The increased percentage weight of these parts compared to 2008 was due, on the one hand, to the growth in the sales of genuine parts (+588,000 Euros) and, on the other hand, to the significant fall in the sales of accessories (-5.1 million Euros) and merchandising (-202,000 Euros).
The Official Toyota Assistance network is the main client of the After-Sales Division. This client got 89.8% of global invoicing, corresponding to 36 million Euros. However, this is a reduction of 0.2% (-86,000 Euros) when compared with the total for the previous year. Completion-rate for the budgeted value for 2009 for this client stood at 97.3%.
Invoicing for Accessories totalled, by the end of the year, 3.6 million Euros, 102.5% of the budgeted amount. However, this amount is still 58.4% below the sales in 2008.
This fall in sales of accessories is essentially the result of two factors:
The sharp drop in sales of new vehicles which, as is well known, has a direct impact on sales of accessories. This impact is reflected both in a drop in sales for the Ovar plant (for the inclusion of accessories in new vehicles) and in direct sales to the Retailers' network.
The reduction in sales of metal containers and scales for the Dyna to be exported.
Sales of merchandising in 2009 totalled 310,000 Euros, which was a drop of 39.4% in comparison with the value invoiced in 2008. Here too, the fall in sales of new vehicles had a decisive impact on merchandising activity.
Performance in sales of parts, accessories and merchandising during the year that has just ended reflected the world economic crisis. During the year, which was especially difficult, Toyota Caetano Portugal embarked on several initiatives in order to mitigate the difficulties:
Expansion of the Optifit product range, with the launch of a further reconditioned product: the turbocharger.
Leveraging the tyre business with the 'Leave Your Mark', 'Play with Tyres' and 'Big Team' challenges. The sale of this product was given a further incentive within the retention campaign, through the offer of free gifts.
The complex and serious national and international state of affairs subject the Company's activity to certain conditions in 2009, and so the management of all resources, namely Human Capital, demanded additional efforts in terms of efficiency and commitment of all in order to minimise the difficulties we are facing.
It became absolutely indispensable to add expenditure control mechanisms to which all Employees were invited to contribute, without, however, jeopardizing motivation and incentives for all, in order to create the conditions to overcome this less positive period.
2009 was not so much a year of new engagements as of a great effort to keep existing jobs, with the overriding concern to ensure that the whole workforce remained committed to personal and organisational results and objectives.
During 2009, in addition to the preparation, follow-up and execution of the Training Plan, we supported the organisation and implementation of the Qualification and Employment Programme (PQE – Programa de Qualificação e Emprego) at Ovar Plant.
In fact, given the sharp drop in production registered at Ovar Plant, we sought to make great and balanced use of every means at our disposal that would help us minimise the impact of this situation.
In this sense, we signed up to the Qualification and Employment Programme, using the periods of reduced activity to improve Employee Qualification levels through Training.
315 employees were involved in this Programme with a total of 120,000 hours of training and RVCC.
The Toyota Caetano NOC (New Opportunities Centre), in addition to working with adults from different Companies and places, focused much of its activity on supporting the Qualification and Employment Programme at Ovar Plant. During 2009, 533 adults took part in the RVCC process, with 95 qualifying at Basic Level and 94 at Secondary Level.
| 2009 | 2008 | 2007 | ||||
|---|---|---|---|---|---|---|
| Type of Actions | Courses Participants | Courses | Participants | Courses Participants | ||
| Rotational Learning | 13 | 293 | 10 | 158 | 15 | 243 |
| Professional Training of Active Employees |
124 | 3,047 | 104 | 1,813 | 94 | 1,735 |
| Professional Training of External Employees |
196 | 3,744 | 244 | 4,776 | 187 | 4,466 |
| Total | 333 | 7,084 | 358 | 6,747 | 296 | 6,444 |
The following table shows the training activity developed:
Regarding the qualification of young people, we kept the same volume of courses in Gaia and, under the Protocol signed with IEFP (Portuguese Employment and Professional Training Institute), we re-launched the Learning System courses in Ovar and in Carregado industrial plants.
In the area of Health, Hygiene and Safety at Work, given the new Technical Regulation on Fire Safety in Buildings, it was possible to determine the Self-Protection Measures applicable to each Building, namely the implementation of Safety Logs, Prevention Procedures and Plans, Emergency Procedures, Internal Emergency Plans, Awareness and Training Activities, Simulacrums with the aim of promoting safety and safeguarding the people and goods which are the Companies' capital.
In 2009, from the perspective of Social Accountability in a move promoted by the Associação Portuguesa de Ética Empresarial (Portuguese association for business ethics), we signed up to the Anti-Corruption Charter together with another 26 Companies.
We seek the constant improvement of our human resources management software to facilitate combined analyses, improving information quality and accuracy in order to contribute to more effective management decision-making.
The average age of employees continues to be one of our concerns. However, as shown in the following table, there is a slight upward trend compared to 2008, an increase that obviously deserves our attention with a view to rejuvenating the organisation in future periods.
| 2008 | 2009 | |
|---|---|---|
| TOYOTA CAETANO PORTUGAL, S.A. - GAIA | 43.6 | 43.65 |
| TOYOTA CAETANO PORTUGAL, S.A. - OVAR | 39.37 | 41.14 |
| TOYOTA CAETANO PORTUGAL, S.A. - CARREGADO | 42.46 | 41.69 |
| TOTAL | 41.26 | 42.18 |
In the meanwhile and after acknowledging the good results generated within the financial year under analysis, the Board of Directors decided to grant an Extraordinary Gratification to Employees, totalling 640,000 Euros, as profit-sharing. This gratification will be allocated in accordance with the work and dedication shown by all employees.
2009 was expected to be a financial year of great uncertainty in the face of the economic and financial crisis that had plagued us since the 2nd half of 2008, the most serious impacts having affected the automotive sector after having significantly affected other sectors (financial, real estate ...).
Government measures implemented in the meantime (basically reflecting the decisions taken at the European Community level), on the one hand tried to stop the rise in unemployment, but on the other hand gave initially a strong support to the financial sector trying at all costs to avoid collapses that could prove to be fatal for the Economy as a whole.
We therefore witnessed the decisive actions of the ECB with massive injections of liquidity into the financial sector and the significant reduction in reference rates (Euribor).
On the other hand there was also a widespread and often unfounded rise in bank spreads as a reaction and an attempt to balance the financial sector in face of the difficulties being experienced.
This has been, withal, a 'different' crisis because, following its unexpected arrival and initial progress, Economies adjusted relatively rapidly, allowing us to foresee an 'accelerated' economic recovery when comparing the current crisis with the one experienced for example in the 1930s.
We can therefore even say that for a Company like ours, with a good rating, the contained rise of spreads together with the significant reduction in Euribor rates enabled us to absorb an overall financial cost which was far less serious than in previous periods.
We still needed to solve the other part of the equation which required us to implement tight cost controls as the only way of combating the reduction in revenues resulting from the fall in demand in the automotive market.
Acknowledging that the policy of salary restraint that was adhered to was important, we should not fail to highlight another package of expenditure control and filtering measures, particularly at the level of Marketing and Sales Promotion, which allowed us to reach levels of activity which, while obviously undergoing losses on the previous year, enabled us to maintain our relative position in the market in which we operate and at the same time achieve levels of profitability which were interesting in face of the context of the global economic picture mentioned above.
It was thus possible to achieve, in 2009 a turnover of 294.8 million Euros. The details are as follows:
| (Thousand Euros) | |||||||
|---|---|---|---|---|---|---|---|
| Sales | 2009 | 2008 | Var % | ||||
| Internal Market External Market |
275,487 19,334 |
341,638 63,755 |
-19.4% -69.7% |
||||
| Total | 294,821 | 405,393 | -27.3% |
We highlight the reduction registered in sales for External markets, with particular incidence in the Dyna model assembly carried out at Ovar Plant and aimed at several European markets.
This product is crucial for the Plant in question and needs to be rethought in terms of its European commercialisation and local Toyota Retailers should be more aware of the importance of extending their operations to the commercial vehicle segment, in order to consolidate and increase the brand share in European terms.
| (Million Euro) | |||||
|---|---|---|---|---|---|
| Origin of Funds | Application of Funds | ||||
| Cash Flow Cash and |
18 | 27% | Distribution | 3 | 4% |
| Deposits | 1 | 2% | Banks | 36 | 54% |
| Customers | 18 | 27% | Suppliers | 11 | 17% |
| Stocks | 29 | 44% | Public Entities | 1 | 1% |
| Investment | 12 | 18% | |||
| Corporate Income | |||||
| Tax | 2 | 3% | |||
| Other | 2 | 3% | |||
| Total | 66 | 100% | Total | 66 | 100% |
The previous table shows that the Company was able to generate a Cash Flow of 18 million Euros, with the reductions in levels of credit granted and the appropriate adjustments in stock to the levels of activity developed logically leading to a significant reduction with respect to bank indebtedness.
In turn and as can be seen in the table below, the main operating indicators remained perfectly stable. Among these the high degree of financial autonomy is worthy of note - an extraordinarily high 50%.
| Indicator | 2009 | 2008 |
|---|---|---|
| Average Stock Rotation (days) Average Collection Term (days) Average Payment Term (days) |
73 82 34 |
81 75 33 |
| Financial Autonomy | 50% | 40% |
Pursuant to the above and after deduction of the estimate for Taxes, a net profit of 5.4 million Euros was obtained which represents an increase of more than 71% over the previous financial year.
Looking ahead to the financial year 2010, we would like to inform you that we believe that the brands we represent will continue their journey of recovery in what is still a very unstable market, but which we believe will see some growth. This, together with the maintenance of the market penetration levels achieved in 2009, will enable us to increase activity by more than 10% compared to 2009. It is still our objective to obtain very similar profits to those we achieved in 2009.
We can confirm that at the date of this report there were no compliance failures in respect of the Public Entities account, and until now there has been no event that could jeopardise the business and the accounts that have just been published.
We would also like to mention some extraordinary events that took place this financial year which allowed for an increase in income before taxes and that basically resulted in the award of 2.1 million Euros of subventions under the investment and employment support programmes (POE-SIME/PQE-PASA).
Given the application of the maximum rates provided for by law, depreciation for the financial year reached 10.7 million Euros and it was not felt necessary to strengthen existing adjustments for the coverage of current assets.
All the members of the Board of Directors of Toyota Caetano Portugal, SA., under the terms of item c) of no.1 of article no. 245 of the Código de Valores Mobiliários (Portuguese Securities Code), do hereby declare that, to the best of their knowledge, the information foreseen in item a) of the abovementioned article was prepared in accordance with applicable accounting standards, thus giving a true and fair view of the assets and liabilities, the financial situation and the profits obtained by Toyota Caetano Portugal, SA., and that the management report faithfully expounds the development of the Company's business ventures, performance and standing, while further containing a description of the main risks and uncertainties which it currently faces.
In accordance with the provisions of item b) of article no. 376 of the Código de Valores Mobiliários (Portuguese Securities Code), we propose the following allocation of the profits obtained during the fiscal year, to the amount of 5.443.818,71 Euros:
| a) For dividends to be attributed to the capital, at 0.15 Euros per share, which, considering its amount of 35.000.000 shares, totals |
||
|---|---|---|
| € | 5.250.000,00 | |
| b) For attribution to the Social Bodies, as sharing of profits | ||
| € | 82.500,00 | |
| c) The remainder for the reinforcement of Free Reserves | € | 111.318,71 |
Since the end of 2009 and up to the present date, no relevant facts worthy of being mentioned have been observed.
This report would be incomplete if we did not express our acknowledgement of the people or bodies who, in some manner, have contributed to the development of the Company's activity or for the profits achieved in 2009, namely:
Vila Nova de Gaia, 8 April 2010
The Board of Directors
José Reis da Silva Ramos – President Hiroyuki Ochiai Andrea Formica Maria Angelina Martins Caetano Ramos Salvador Acácio Martins Caetano Miguel Pedro Caetano Ramos Rui Manuel Machado de Noronha Mendes
JOSÉ REIS DA SILVA RAMOS: has no changes and as such as at 31 December 2009, he held 86.000 shares, with the nominal value of one Euro each.
HIROYUKI OCHIAI – Holds no shares or obligations.
ANDREA FORMICA - Holds no shares or obligations.
MARIA ANGELINA MARTINS CAETANO RAMOS – Holds no shares or obligations. Her spouse registered no changes and as such as at 31 December 2009, he held 86.000 shares, with the nominal value of one Euro each.
SALVADOR ACÁCIO MARTINS CAETANO – Holds no shares or obligations.
MIGUEL PEDRO CAETANO RAMOS – Appointed by cooptation on the 29th of January 2010, this Company registered no changes and as such at 31 December 2009, held 1.130 shares , with the nominal value of one Euro each..
RUI MANUEL MACHADO DE NORONHA MENDES - Appointed by cooptation on the 29th of January 2010, holds no shares or obligations.
SHIGEKI ENAMI – Holds no shares or obligations.
Maria Angelina Martins Caetano Ramos, spouse of José Reis da Silva Ramos, President of the Board of Directors, and Salvador Acácio Martins Caetano, and Ana Maria Martins Caetano, members of the Board of Directors of GRUPO SALVADOR CAETANO, SGPS, S.A., this Company registered no changes and as such as at 31 December 2009, held 21.000.000 shares, with the nominal value of one Euro each.
José Reis da Silva Ramos, spouse of Maria Angelina Martins Caetano Ramos, Director of FUNDAÇÃO SALVADOR CAETANO, this Company registered no changes and as such as at 31 December 2009, held 670.006 shares, with the nominal value of one Euro each.
Maria Angelina Martins Caetano Ramos, spouse of José Reis da Silva Ramos, member of the Board of Directors of COCIGA – Construções Civis de Gaia, S.A., this Company registered no changes and as such as at 31 December 2009, held 290 shares, with the nominal value of one Euro each.
José Jorge Abreu Fernandes Soares – Holds no shares or obligations.
Kenichiro Makino – Holds no shares or obligations.
António Pimpão & Maximino Mota, SROC represented by António Maia Pimpão – Holds no shares or obligations.
DELOITTE & ASSOCIADOS, Sociedade de Revisores Oficiais de Contas, S.A. represented by António Manuel Martins Amaral - Holds no shares or obligations.
| Shares Held As at 31.12.08 |
Shares Acquired As at 2009 |
Shares Sold As at 2009 |
Shares Held As at 31.12.09 |
|
|---|---|---|---|---|
| JOSÉ REIS DA SILVA RAMOS (President) | 86.000 | -- | -- | 86.000 |
| HIROYUKI OCHIAI (Member) | -- | -- | -- | -- |
| ANDREA FORMICA (Member) | -- | -- | -- | -- |
| MARIA ANGELINA M. CAETANO RAMOS (Member) | -- | -- | -- | -- |
| SALVADOR ACACIO MARTINS CAETANO (Member) | -- | -- | -- | -- |
| MIGUEL PEDRO CAETANO RAMOS (Member) | 1.130 | -- | -- | 1.130 |
| RUI MANUEL MACHADO DE NORONHA MENDES (Member) |
-- | -- | -- | -- |
| SHIGEKI ENAMI (Director - Alternate) | -- | -- | -- | -- |
| JOSÉ JORGE ABREU FERNANDES SOARES (President of the Audit Board) |
-- | -- | -- | -- |
| KENICHIRO MAKINO (Member of the Audit Board) | -- | -- | -- | -- |
| ANTÓNIO PIMPÃO & MAXIMINO MOTA, SROC, REPRESENTED BY ANTÓNIO MAIA PIMPÃO (Member of the Audit Board) |
-- | -- | -- | -- |
| DELOITTE & ASSOCIADOS, SROC, S.A., REPRESENTED BY ANTÓNIO MANUEL MARTINS AMARAL (Statutory Auditor) |
-- | -- | -- | -- |
| SHAREHOLDERS | Shares | Shares | Shares | Shares |
|---|---|---|---|---|
| Held | Acquired | Sold | Held | |
| As at 31.12.2008 | As at 2009 | As at 2009 | As at 31.12.09 | |
| TOYOTA MOTOR EUROPE NV/SA | 9.450.000 | -- | -- | 9.450.000 |
| SHAREHOLDERS | Shares | Shares | Shares | Shares |
|---|---|---|---|---|
| Held | Acquired | Sold | Held | |
| As at 31.12.2008 | As at 2009 | As at 2009 | As at 31.12.09 | |
| GRUPO SALVADOR CAETANO, SGPS, SA |
21.000.000 | -- | -- | 21.000.000 |
| SHAREHOLDER | Shares | % of voting rights |
|---|---|---|
| GRUPO SALVADOR CAETANO - SGPS, SA | 21.000.000 | 60,00 |
| TOYOTA MOTOR EUROPE NV/SA | 9.450.000 | 27,000 |
| SALVADOR FERNANDES CAETANO | 1.167.465 | 3,336 |
| Millenium BCP – Gestão de Fundos de Investimentos, S.A. representing the securities' funds it manages, as follows: |
||
| • Millennium Acções Portugal |
701.163 | 2,00 |
| • Millennium PPA |
541.020 | 1,55 |
| • Millennium Poupança PPR |
85.296 | 0,24 |
| • Millennium Investimento PPR |
48.823 | 0,14 |
| • Millennium Aforro PPR |
11.752 | 0,03 |
| (Euros) | |||||
|---|---|---|---|---|---|
| Gross | Depreciations | Net Assets | Net Assets | ||
| ASSETS | Notes | Assets | Adjustements | 2009 | 2008 |
| FIXED ASSETS | |||||
| INTANGIBLE FIXED ASSETS | |||||
| Installation Expenses | 1.272.956 | 1.272.956 | 1.740 | ||
| R & D Expenses | 8 | 3.068.233 | 2.925.926 | 142.307 | 330.997 |
| Goodwill | 983.568 | 983.568 | |||
| 10 | 5.324.757 | 5.182.450 | 142.307 | 332.737 | |
| TANGIBLE FIXED ASSETS | |||||
| Land | 12.234.483 | 12.234.483 | 12.234.483 | ||
| Buildings | 63.010.337 | 50.769.846 | 12.240.491 | 14.591.900 | |
| Machinery and Fixtures | 39.779.184 | 33.418.327 | 6.360.857 | 7.350.379 | |
| Vehicles | 32.198.282 | 13.297.440 | 18.900.842 | 13.600.749 | |
| Tools | 9.112.185 | 9.019.032 | 93.153 | 232.325 | |
| Administrative Equipment | 6.830.983 | 6.574.228 | 256.755 | 351.702 | |
| Other Fixed Assets | 2.771.712 | 2.494.620 | 277.092 | 333.183 | |
| Construction in Progress | 903.473 | 903.473 | 980.990 | ||
| 10 and 13 | 166.840.639 | 115.573.493 | 51.267.146 | 49.675.711 | |
| INVESTMENTS | |||||
| Investments on Affiliates | 16 | 40.145.414 | 22.047.310 | 18.098.104 | 18.098.104 |
| Investments in Other Companies | 41.400 | 1.496 | 39.904 | 39.904 | |
| Loan to Affiliates | 16 | 9.830.000 | 9.830.000 | 9.830.000 | |
| 10 and 21 | 50.016.814 | 22.048.806 | 27.968.008 | 27.968.008 | |
| CURRENT ASSETS | |||||
| INVENTORIES | |||||
| Raw Materials and Others | 41 | 7.782.071 | 7.782.071 | 14.648.842 | |
| Production in Process | 42 | 7.066.213 | 7.066.213 | 7.178.424 | |
| Built-up and Finished Products | 42 | 3.820.977 | 3.820.977 | 6.876.239 | |
| Goods | 21 and 41 | 33.933.811 | 1.300.000 | 32.633.811 | 51.577.147 |
| 52.603.072 | 1.300.000 | 51.303.072 | 80.280.652 | ||
| CREDITS AT MEDIUM AND LONG TERM | |||||
| Accounts Receivable | 1.124.374 | ||||
| CREDITS AT SHORT TERM | |||||
| Accounts Receivable | 16 | 74.653.578 | 74.653.578 | 91.600.729 | |
| Doubtful Accounts Receivable | 21 and 23 | 5.502.982 | 4.625.562 | 877.420 | 885.378 |
| Down Payments | 39.035 | 39.035 | 22.447 | ||
| Group Companies | 16 | 1.074.749 | 1.074.749 | 268.822 | |
| Accrued Taxes | 806.022 | ||||
| Other Credits | 1.956 | ||||
| 81.270.344 | 4.625.562 | 76.644.782 | 93.585.354 | ||
| AVAILABILITIES | |||||
| Bank Deposits | 1.846.812 | 1.846.812 | 3.190.512 | ||
| Cash | 137.898 | 137.898 | 120.618 | ||
| 1.984.710 | 1.984.710 | 3.311.130 | |||
| ACCRUED AND DEFERRED | |||||
| Accrued Income | 52 | 2.200 | 2.200 | 241.866 | |
| Deferred Costs | 52 | 546.987 | 546.987 | 875.677 | |
| Assets for deferred tax | 6 | 773.666 | 773.666 | 773.666 | |
| 1.322.853 | 1.322.853 | 1.891.209 | |||
| Total Depreciations | 120.755.943 | ||||
| Total Adjustements | 27.974.368 | ||||
| TOTAL ASSETS | 359.363.189 | 148.730.311 | 210.632.878 | 258.169.175 |
CHARTERED ACCOUNTANT ALBERTO LUÍS LEMA MANDIM
| (Euros) | |||
|---|---|---|---|
| Equity and | Equity and | ||
| SHAREHOLDERS' EQUITY & LIABILITIES | Notes | Liabilities 2009 | Liabilities 2008 |
| EQUITY | |||
| SHARE CAPITAL | 36 and 40 | 35.000.000 | 35.000.000 |
| ADJUSTMENTS TO FINANCIAL INVESTMENTS | 40 | (22.853.306) | (22.853.306) |
| RESERVE FOR REVALUATION OF FIXED ASSETS | 40 | 6.195.184 | 6.195.184 |
| RESERVE | |||
| Legal Reserve | 40 | 7.498.903 | 7.498.903 |
| Other Reserve | 40 | 74.544.546 | 74.217.796 |
| NET INCOME | 40 | 5.443.819 | 3.176.750 |
| Total Equity | 105.829.146 | 103.235.327 | |
| LIABILITIES | |||
| PROVISIONS | |||
| Reserve According to Industrial Tax Code | 34 | 2.576.815 | 2.596.546 |
| MEDIUM AND LONG TERM LIABILITIES | |||
| Other Loans | 51 | 2.119.358 | |
| Group Companies | 16 | 3.555.648 | 3.265.244 |
| Accounts Payable Fixed Assets | 15 | 3.506.970 | 1.919.861 |
| 9.181.976 | 5.185.105 | ||
| CURRENT LIABILITIES | |||
| Bank Loan | 50 | 44.970.000 | 84.949.633 |
| Accounts Payable | 16 | 24.374.663 | 35.343.390 |
| Shareholders | 36.583 | 32.432 | |
| Down Payments | 69.513 | 128.828 | |
| Accounts Payable Fixed Assets | 15 | 1.431.341 | 355.064 |
| Accrued Taxes | 49 | 11.679.262 | 12.488.801 |
| Other Credits | 641.348 83.202.710 |
5.281 133.303.429 |
|
| ACCRUED AND DEFERRED | |||
| Accrued Costs | 52 | 7.400.261 | 12.061.484 |
| Deferred Income | 52 | 1.814.598 | 729.537 |
| Liabilities for deferred tax | 6 | 627.372 | 1.057.747 |
| 9.842.231 | 13.848.768 | ||
| Total Liabilities | 104.803.732 | 154.933.848 | |
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | 210.632.878 | 258.169.175 |
BOARD OF DIRECTORS
JOSÉ REIS DA SILVA RAMOS – President HIROYUKI OCHIAI ANDREA FORMICA MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS RUI MANUEL MACHADO DE NORONHA MENDES
| (Euros) | |||
|---|---|---|---|
| Equity and | Equity and | ||
| SHAREHOLDERS' EQUITY & LIABILITIES | Notes | Liabilities 2009 | Liabilities 2008 |
| EQUITY | |||
| SHARE CAPITAL | 36 and 40 | 35.000.000 | 35.000.000 |
| ADJUSTMENTS TO FINANCIAL INVESTMENTS | 40 | (22.853.306) | (22.853.306) |
| RESERVE FOR REVALUATION OF FIXED ASSETS | 40 | 6.195.184 | 6.195.184 |
| RESERVE | |||
| Legal Reserve | 40 | 7.498.903 | 7.498.903 |
| Other Reserve | 40 | 74.544.546 | 74.217.796 |
| NET INCOME | 40 | 5.443.819 | 3.176.750 |
| Total Equity | 105.829.146 | 103.235.327 | |
| LIABILITIES | |||
| PROVISIONS | |||
| Reserve According to Industrial Tax Code | 34 | 2.576.815 | 2.596.546 |
| MEDIUM AND LONG TERM LIABILITIES | |||
| Other Loans | 51 | 2.119.358 | |
| Group Companies | 16 | 3.555.648 | 3.265.244 |
| Accounts Payable Fixed Assets | 15 | 3.506.970 | 1.919.861 |
| 9.181.976 | 5.185.105 | ||
| CURRENT LIABILITIES | |||
| Bank Loan | 50 | 44.970.000 | 84.949.633 |
| Accounts Payable | 16 | 24.374.663 | 35.343.390 |
| Shareholders | 36.583 | 32.432 | |
| Down Payments | 69.513 | 128.828 | |
| Accounts Payable Fixed Assets | 15 | 1.431.341 | 355.064 |
| Accrued Taxes | 49 | 11.679.262 | 12.488.801 |
| Other Credits | 641.348 83.202.710 |
5.281 133.303.429 |
|
| ACCRUED AND DEFERRED | |||
| Accrued Costs | 52 | 7.400.261 | 12.061.484 |
| Deferred Income | 52 | 1.814.598 | 729.537 |
| Liabilities for deferred tax | 6 | 627.372 | 1.057.747 |
| 9.842.231 | 13.848.768 | ||
| Total Liabilities | 104.803.732 | 154.933.848 | |
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | 210.632.878 | 258.169.175 |
BOARD OF DIRECTORS
JOSÉ REIS DA SILVA RAMOS – President HIROYUKI OCHIAI ANDREA FORMICA MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS RUI MANUEL MACHADO DE NORONHA MENDES
| (Euros) | ||||||
|---|---|---|---|---|---|---|
| COSTS | Notes | 2009 | 2008 | |||
| COST OF GOODS AND RAW MATERIALS | ||||||
| Goods | 203.704.894 | 252.841.020 | ||||
| Raw Materials | 41 | 32.190.635 | 235.895.529 | 82.641.587 | 335.482.607 | |
| SUPPLIES | 38.739.911 | 53.178.442 | ||||
| PERSONNEL EXPENSES | ||||||
| Wage and Salary Welfare |
12.189.811 | 11.753.428 | ||||
| Pension Fund | 31 | 218.511 | 598.548 | |||
| Other | 6.291.901 | 18.700.223 | 6.118.064 | 18.470.040 | ||
| DEPRECIATIONS ADJUSTMENTS |
10 | 10.672.647 | 9.375.104 | |||
| PROVISIONS | 10.672.647 | 9.375.104 | ||||
| TAXES | 466.890 | 695.478 | ||||
| OTHER OPERACIONAL COSTS | 8.317.861 | 8.784.751 | 10.152.670 | 10.848.148 | ||
| INTEREST | (A) | 312.793.061 | 427.354.341 | |||
| Depreciations and Provisions for Financial Investments | ||||||
| Other | (C) | 45 | 3.038.976 | 3.038.976 315.832.037 |
6.082.486 | 6.082.486 433.436.827 |
| EXTRAORDINARY LOSSES | 46 | 309.608 | 245.207 | |||
| (E) | 316.141.645 | 433.682.034 | ||||
| INCOME TAXES | 6 and 49 | 1.986.705 | 979.645 | |||
| (G) | 318.128.350 | 434.661.679 | ||||
| NET INCOME | 5.443.819 | 3.176.750 | ||||
| 323.572.169 | 437.838.429 | |||||
| PROFITS | Notes | 2009 | 2008 | |||
| SALES Goods |
245.035.080 | 303.989.141 | ||||
| Built-up and Other Finished Products | 44.236.654 | 95.117.261 | ||||
| SERVICE PROVIDED | 44 | 5.549.647 | 294.821.381 | 6.286.412 | 405.392.814 | |
| VARIATION OF PRODUCTS | 42 | (3.167.473) | 3.343.153 | |||
| WORKS OF THE COMPANY FOR ITSELF | 85.117 | |||||
| REVERSION OF DEPRETIATIONS AND ADJUSTMENTS | 360.111 | |||||
| SUPLEMENTARY INCOME SUBSIDIES |
26.720.182 1.616.397 |
28.336.579 | 24.444.809 907.751 |
25.797.788 | ||
| (B) | 319.990.487 | 434.533.755 | ||||
| INCOME FROM INVESTMENTS | 566.587 | |||||
| OTHER FINANCIAL INCOME Related to Other Affiliates |
||||||
| Related to Other Companies | 2.277 | 1.931 | ||||
| INTEREST | ||||||
| Other | 45 | 526.097 | 528.374 | 768.404 | 1.336.922 | |
| EXTRAORDINARY PROFITS | (D) | 46 | 320.518.861 3.053.308 |
435.870.677 1.967.752 |
||
| (F) | 323.572.169 | 437.838.429 | ||||
| RESUMO: Operational Income (B)-(A) = |
7.197.426 | 7.179.414 | ||||
| Financial Income (D-B)-(C-A) = | (2.510.602) | (4.745.564) | ||||
| Current Income (D)-(C) = Income Before Taxes (F)-(E) = |
4.686.824 7.430.524 |
2.433.850 4.156.395 |
||||
| Net Income (F)-(G) = CHARTERED ACCOUNTANT |
BOARD OF DIRECTORS | 5.443.819 | 3.176.750 |
HIROYUKI OCHIAI
ANDREA FORMICA MARIA ANGELINA MARTINS CAETANO RAMOS
SALVADOR ACÁCIO MARTINS CAETANO
MIGUEL PEDRO CAETANO RAMOS
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.
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") that mainly carry economic activities included in the automotive sector, which are described in Note 16, together with other financial information.
According to Note 54 of the Notes to the Balance Sheet and Income Statement of 2008, the Company has decided to adhere to the Program of Qualification and Employment for the Automotive Industry (PASA), which took place between March 2009 and March 2010 (Note 53).
During the year 2009 were received the incentives related to the application to the Support Program POE 1.2 SIME A and to the Support Program IDT-OPTIMO SEVEN (Note 53).
According to the applicable legislation, Toyota Caetano will present separately, financial consolidated statements as at 31 of December 2009 prepared in accordance with International Financial Rules of Statement (IAS/IFRS) adopted in the European Union.
The following notes are numbered as defined by the Official Chart of Accounts ("Plano Oficial de Contabilidade - POC) and the notes that are not included herein are either not applicable to Toyota Caetano or their inclusion is not significant to the reading of the accompanying financial statements.
Amounts mentioned in these notes are expressed in Euros.
The accompanying financial statements have been prepared on a going concern basis from books and accounting records of Toyota Caetano, maintained in accordance with generally accepted accounting principles in Portugal and defined in "POC" (Portuguese GAP).
The principal accounting policies used in the preparation of the accompanying financial statements are as follows:
Installations expenses, goodwill and development expenses, which mainly comprise costs with technological development and studies and conception of prototypes, are depreciated on a straightline basis over a period of three years.
Tangible fixed assets acquired up to 31 December 1997 are stated at cost and can be restated in accordance with Portuguese legislation (Note 12). Tangible fixed assets acquired after that date are stated at cost.
Depreciation is computed on straight line basis on an annual basis, accordingly with the following useful lives:
| Years |
|---|
| 20 - 50 |
| 7 - 16 |
| 4 - 5 |
| 4 - 14 |
| 3 - 14 |
| 4 - 8 |
The depreciations of the period ended at 31 of December 2009 were increased as a result of the restatement done. A part (40%) of this amount it is not accepted as a cost for corporate income tax purposes (IRC). Additionally, 40% of the depreciations of future exercises related to the effect of the restatement on fixed assets not yet depreciated will not be accepted as fiscal cost either, and the company recorded the correspondent liability for deferred tax (Note 6).
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 and the corresponding liability determined in accordance with the contractual financial plan are recorded and reflected in the balance sheet. Installments are composed of interest and capital refunding. Interest included in the lease installments and depreciation of the fixed assets is recognized in the income statement of the period to which they apply (Note 15).
Financial investments over 20% in Toyota Caetano Group companies (Note 16), are stated at cost, and a provision is recorded to reduce costs to its net realizable value for each investment which was stated against the equity caption "Adjustments to Financial Investments" according with the Portuguese Official Chart of Accounts.
Dividends from Group companies are recorded in the Statement of income of the period in which they are received.
Merchandise, raw, subsidiary and consumable materials are stated at average cost, which is lower than market value.
A provision for depreciation of used cars was created to face the strong fluctuation of these product's market prices (Note 21).
Finished and intermediate goods and work in process are stated at production cost, which is lower than market value. Production costs include incorporated raw materials, direct labor, production overheads and external services.
Includes the remaining part of the provision recorded in previous years according to the previous Corporate Income Tax Code ("ex - Código da Contribuição Industrial") and is held to face doubtful accounts and inventories depreciation marginal risks, or other general risks.
Non refundable subsidies received to finance fixed and intangible assets are recorded when granted as deferred income, and recognized in the Statement of profit and loss proportionally to the depreciation of the subsidized assets (Notes 46 and 53).
Operating subsidies are recorded as "Operating income"in the period in which they are received (Note 53).
Toyota Caetano records income and expenses on an accrual basis. Under this basis income and expenses are recorded in the period to which they are related independently of when the amounts are received or paid. The differences between the amounts received and paid and the corresponding income and expenses are recorded in "Accruals and Deferrals" captions (Note 52).
The Company has the policy of recording employee termination indemnities as an operational expense in the year in which they are agreed.
During the period ended in 31 December 2009 were paid indemnities in the amount of approximately Euros 913.000 (approximately Euros 678.000 in 31 December 2008).
Assets and liabilities expressed in foreign currencies are translated 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.
The company, according with the Accounting Standard nº 28/01, recorded in the period, in "Accruals and deferrals " captions, deferred income tax related to the tax effect of timing differences between the results determined for accounting and taxation purposes ( Notes 6 ).
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. Consequently, the tax returns for the years 2006 to 2009 are still subject to review. Social Security returns can be reviewed during a period of ten years till 2000, included, and five years since 2001. 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.
As a result of favorable decisions on the judicial impugnation processes, referring to the additional payments of the Corporate Income Tax and relating to the fiscal years of 1995, 1997, 1998 and 1999 it is forecasted that the return of the remaining tax timely paid-in, added by the respective compensatory interest may occur soon.
During the period ended at 31 December 2009 and regarding the additional notes of 1996, the amount of Euros 36.770 were received (Note 46).
In what concerns the fiscal audit to the year of 1995 the additional note related to Corporate Income tax already paid in the amount of 706.345 Euros was judicially claimed and the company thinks there are juridical reasons to act in this way.
Regarding the fiscal audit to the years 1997, 1998 and 1999 the additional notes related to Corporate Income Tax already paid, were claimed, of Euros 1.308.711 as the Company understands that there are legal reasons to this procedure
Regarding the fiscal audit to the years 2003 and 2004 the additional notes were claimed, although paid and recognized as extraordinary costs in previous exercises, in the amount of Euros 725.542.
Amounts and nature of the assets and liabilities for deferred taxes recorded in this year comprise (Debits/ (Credits)):
| Balance 31 December 2009 |
|||
|---|---|---|---|
| Deferred tax assets |
Deferred tax liability |
Reflected in Income Statement |
|
| Provisions not accepted as fiscal costs | 773.666 | ||
| 40% of depreciation as a result of legal revaluation of fixed assets |
(106.551) | (32.766) | |
| Effect of the reinvestments of the gains in fixed assets sales |
(484.150) | (63.288) | |
| Gains in fixed assets according nº7 Art. 7º Law 30/G | (36.671) | (6.112) | |
| ---------------- 773.666 ========= |
----------------- (627.372) ========== |
----------------- (102.166) ========= |
Additionally the Income Statement caption "Income taxes" was determined like follows:
| Income taxes in 2009 (Note 49) | 2.088.871 |
|---|---|
| Deferred income taxes in 2009 | -102.166 |
| 1.986.705 |
In March 2007 the Company took the decision to apply to the Corporate Income Tax for the Group (RETGS) according to the article 63º and 64º of Income Tax Code ( CIRC) and beginning in 01 January 2007.
In consequence the parent company (Toyota Caetano Portugal, S.A.) shall book the income tax calculated in the Group Companies to obtain the group income tax.
The amount of group income tax for the exercise 2009 in the caption State and Other Public Entities was as follows (Note 49):
| Company | Amount |
|---|---|
| Toyota Caetano Portugal, S.A. | 1.591.261 |
| Saltano SGPS, S.A. | -33.155 |
| Caetano Components, SA | -106.591 |
| Caetano Renting, S.A. | -33.263 |
| Caetano Auto, S.A. | 1.087.988 |
| Corporate Income Tax(payments in advance) | -341.676 |
| 2.164.564 |
The average number of employees was as follows:
| Items | Dec´09 | Dec´08 |
|---|---|---|
| Employees Production Personnel |
447 254 |
475 244 |
| 701 | 719 |
As of 31 December 2009, the net value of this item was as follows:
| Research and development expenses: | |
|---|---|
| - Studies and prototypes of Optimo's new buses | 821.963 |
| - Study of the new Dyna's model | 1.924.039 |
| - Environment Study | 135.095 |
| - SIME consulting | 20.410 |
| - International events participation | 166.726 |
| - Depreciation | (2.925.926) |
| Total | --------------- 142.307 |
| ========== |
During 2009, the movement in intangible and tangible fixed assets, and financial investments as well as in the accumulated depreciation and provisions was as follows:
| Items | Opening | Transfers and | Ending | ||
|---|---|---|---|---|---|
| Balances | Increases | Disposals | Write-Offs | Balances | |
| Intangible Fixed Assets | |||||
| Installation Expenses | 1.272.956 | 1.272.956 | |||
| Research & Develepment Expenses | 3.012.785 | 55.448 | 3.068.233 | ||
| Key Money | 983.568 | 983.568 | |||
| 5.269.309 | 55.448 | - | - | 5.324.757 | |
| Tangible Fixed Assets | |||||
| Land | 12.234.483 | 12.234.483 | |||
| Buildings and Other Constructions | 63.297.503 | 3.414 | -290.580 | 63.010.337 | |
| Machinery and Equipment | 39.286.004 | 546.943 | 53.763 | 39.779.184 | |
| Vehicles | 23.397.163 | 13.904.510 | 5.089.564 | -13.827 | 32.198.282 |
| Tools | 9.069.682 | 42.503 | 9.112.185 | ||
| Administrative Equipment | 6.776.866 | 61.658 | 7.386 | -155 | 6.830.983 |
| Other Fixed Assets | 2.739.615 | 32.097 | 2.771.712 | ||
| Construction in Progress | 980.990 | -77.517 | 903.473 | ||
| 157.782.306 | 14.591.125 | 5.150.713 | -382.079 | 166.840.639 | |
| Investments | |||||
| Investments on Group Companies | 40.145.414 | 40.145.414 | |||
| Investments on Other Companies (Note 48) | 41.400 | 41.400 | |||
| Loan to Group Companies | 9.830.000 | 9.830.000 | |||
| 50.016.814 | - | - | - | 50.016.814 |
| Items | Opening | Transfers and | Ending | ||
|---|---|---|---|---|---|
| Balances | Increases | Disposals | Write-Offs | Balances | |
| Intangible Fixed Assets | |||||
| Installation Expenses | 1.271.216 | 1.740 | 1.272.956 | ||
| Research & Develepment Expenses | 2.681.788 | 244.138 | 2.925.926 | ||
| Key Money | 983.568 | 983.568 | |||
| 4.936.572 | 245.878 | - | - | 5.182.450 | |
| Tangible Fixed Assets | |||||
| Buildings and Other Constructions | 48.705.603 | 2.354.823 | -290.580 | 50.769.846 | |
| Machinery and Equipment | 31.935.625 | 1.536.465 | 53.763 | 33.418.327 | |
| Vehicles | 9.796.414 | 6.109.013 | 2.601.074 | -6.913 | 13.297.440 |
| Tools | 8.837.357 | 181.675 | 9.019.032 | ||
| Administrative Equipment | 6.425.164 | 156.605 | 7.386 | -155 | 6.574.228 |
| Other Fixed Assets | 2.406.432 | 88.188 | 2.494.620 | ||
| 108.106.595 | 10.426.769 | 2.662.223 | -297.648 | 115.573.493 | |
| Investments | |||||
| Investments on Group Companies | 22.047.310 | 22.047.310 | |||
| Investments on Other Companies | 1.496 | 1.496 | |||
| Loan to Group Companies | |||||
| 22.048.806 | - | - | - | 22.048.806 |
Salvador Caetano restated its tangible fixed assets in accordance with Portuguese legislation as follows:
Decree-Law 430/78, of 27 December Decree-Law 219/82, of 2 June Decree-Law 399-G/84, of 28 December Decree-Law 118-B/86, of 27 May Decree-Law 111/88, of 2 April Decree-Law 49/91, of 25 January Decree-Law 264/92, of 24 November Decree-Law 31/98, of 11 February
A part (40%) of the increase in depreciation result of the legal revaluation of fixed assets is not acceptable as a cost for corporate income tax purposes (IRC), and the company recorded the liability for deferred tax (Note 6).
As of 31 December 2009, the acquisition cost and corresponding legal restatements of tangible fixed assets are as follows:
| Items | Cost | Restatement | Net Restated Value |
|---|---|---|---|
| Tangible Fixed Assets | |||
| Land and Natural Resources | 6.629.922 | 5.604.561 | 12.234.483 |
| Buildings and Other Constructions | 11.245.537 | 994.954 | 12.240.491 |
| Machinery and Equipment | 6.348.613 | 12.244 | 6.360.857 |
| Transport Equipment | 18.900.842 | 18.900.842 | |
| Tools and Utensils | 93.153 | 93.153 | |
| Administrative Equipment | 256.755 | 256.755 | |
| Other Fixed Assets | 277.092 | 277.092 | |
| Construction in Progress | 903.473 | 903.473 | |
| 44.655.387 | 6.611.759 | 51.267.146 |
As of 31 December 2009, the total amount of tangible fixed assets, including construction in progress, regarding the company's premises, is as follows:
| Items | Tangible Fixed Assets |
Construction in Progress |
Total |
|---|---|---|---|
| Head Office and Gaia Plant Ovar Plant Lisbon/ Carregado Facilities |
63.506.740 40.489.871 61.940.555 |
903.473 0 0 |
64.410.213 40.489.871 61.940.555 |
| 165.937.166 | 903.473 | 166.840.639 |
In 31 of December of 2009, the company was maintaining responsibilities like tenant relative to future installments of financial lease contracts in the amount of 4.938.311 Euros, which are included in the caption "Accounts Payable Fixed Assets" and had the following plan of refund:
| 2010 | 1.431.341 |
|---|---|
| 2011 2012 2013 and following |
1.299.705 976.858 1.230.407 |
| -------------- 3.506.970 |
|
| ---------------- 4.938.311 ============ |
|
As of 31 December 2009, the detail of Group and associated companies as for headquarters, percentage of share capital held, equity and net income, was as follows:
| Group Companies | % of capital held | Total Equity | Net Income | Balance Value |
|---|---|---|---|---|
| Saltano - Investimentos e Gestão (SGPS), SA. Av. Vasco da Gama, 1410 - Oliveira do Douro - Vila Nova de Gaia |
99,98% | 20.812.772 | 298.425 | 4.488.183 |
| Caetano - Auto, SA. Av. Vasco da Gama, 1410 - Oliveira do Douro - Vila Nova de Gaia |
93,18% | 46.921.079 | 1.606.593 | 9.868.048 |
| Salvador Caetano (UK), Ltd. Mill Lane, Heather-Coalville-Leicestershire United Kingdom |
99,82% | 3.529.540 | 41.174 | 24.195.690 |
| Cabo Verde Motors Terra Branca - Praia Cabo Verde |
81,24% | 5.950.238 | 607.272 | 463.493 |
| Caetano Renting, SA. Rua José Mariani, 164 - Santa Marinha Vila Nova de Gaia |
99,98% | 2.286.383 | 917.413 | |
| Caetano Components, SA. Rua da Pereiras,275 Vila Nova de Gaia |
99,98% | 2.102.691 | -339.330 | |
| Movicargo - Movimentação Industrial, Lda. Av. Vasco da Gama, 1410 - Oliveira do Douro - Vila Nova de Gaia |
100,00% | 427.617 | -44.896 | 1.130.000 |
| Affiliated Companies | % of capital held | Total Equity | Net Income | Balance Value |
|---|---|---|---|---|
| Auto Partner SGPS, SA Av. Vasco da Gama, 1410 - Oliveira do Douro - Vila Nova de Gaia |
46,59% | 2.249.871 | -48.354 | |
| Auto Partner - Comercio Automóveis, SA Av. Vasco da Gama, 1410 - Oliveira do Douro - Vila Nova de Gaia |
46,59% | -319.189 | -461.852 | |
| Auto Partner II-Rep C Automoveis SA Av. Vasco da Gama, 1410 - Oliveira do Douro - Vila Nova de Gaia |
46,59% | 51.679 | -38.554 |
Due and payable balances with Group and Associated companies, which, as of 31 December 2009, were recorded in the captions "Customers accounts receivable", "Accounts payable to suppliers", "Loans granted to Group companies" and " Obtained Loans from Group Companies", were as follows:
| - Accounts receivable | 40.872.313 |
|---|---|
| - Accounts payable | -791.269 |
| - Group Companies ("RETGS") | |
| . Saltano, S.A. | -64.420 |
| . Caetano Components, S.A. | -255.015 |
| . Caetano Renting, S.A. | -233.268 |
| . Caetano auto, S.A. | 1.627.452 |
| --------------- 1.074.749 |
|
| ========= | |
| - Granted loans | |
| . Saltano, SA. | 9.830.000 |
| - Obtained loans | |
| . Salvador Caetano UK, Ltd | -3.215.648 |
| . Movicargo, Lda | -340.000 |
| --------------- -3.555.648 |
|
| ========= | |
During 2009, the following movements occurred in the caption Adjustments:
| Items | Opening Balances |
Increases | Transfers (Note 34) |
Utilisation Revertion |
Ending Balances |
|---|---|---|---|---|---|
| Investments Doubtful Accounts Receivable Stocks |
22.048.806 4.623.848 1.300.000 |
19.731 | 18.017 | 22.048.806 4.625.562 1.300.000 |
|
| 27.972.654 | - | 19.731 | 18.017 | 27.974.368 |
In 31 of December 2009, accounts receivable considered as doubtful are included in the corresponding captions, amounting to Euros 5.502.982.
Toyota Caetano (along with other associated companies) constituted, by public deed dated 29 December 1988, the Salvador Caetano Pension Fund, which was subsequently updated in 2 January 1994 and in 29 December 1995, in 23 December 2002 and in 30 March 2009.
The Pension Fund was set up to, initially while Toyota Caetano maintains the decision to make contributions to the referred fund, provide employees, at the date of their retirement, the right to a pension complement, which is not updated and is based on a percentage of the salary, among other conditions.
On the 18 December 2007, a dossier was sent to Instituto de Seguros de Portugal containing the proposals of changes in the "Constitutive Contract" of Salvador Caetano Pension Fund, as well as the minute of approval of these alterations by the Accompanying Committee of the fund, and asking, with effects to 1 January 2008, the approval by the above mentioned organism of these changes.
The proposal for these changes in the pensions regime, dully approved by the Accompanying Committee, includes the maintenance of the "defined benefit" for the actual pensioners plus the already negotiated beneficiaries of future pensions, as well as to all the workers of the companies included in the Salvador Caetano Pension Fund having reached 50 years of age and more than 15 years of service by the 1st of January 2008, being thus created a new group of beneficiaries (constituted by the remaining universe of workers of the associated companies to the Salvador Caetano Pension Fund) which will be included in a "Defined Contribution" Plan. This last group of people represented according to the data of the actuarial valuation as at 31st December 2007, near 15% of the total estimated responsibilities.
On the 29 December 2008 the Company received a letter from ISP- Instituto de Seguros de Portugal attesting the approval by this entity of the proposed changes, and that these changes will become effective after 1st January 2008. ISP also determined in their approval that the workers which at the 1 st of January 2008 had already completed 15 years of service despite not being yet 50 years of age,( and that will integrate the " Defined Contribution" scheme) would be entitled to an individual "initial capital" according to the new Plan, and fixed according to the actuarial responsibilities as at 31st December 2007 which were based in the assumptions and criteria used in this last exercise.
In accordance with the actuarial valuation presented by the fund manager, Toyota Caetano made during 2009 a contribution to the fund of 220 thousand Euros (600 thousand Euros in 31 December 2008) which led to the Net Assets pension fund associated to the Company as of 31 December 2009 amount to approximately 19,5 million of Euros, corresponding to the minimum legally established by "ISP-Instituto de Seguros de Portugal". The part of the global responsibilities estimated actuarially to the "Defined Benefit" Plan and regarding this Company, as of 31 December 2009, amounts to approximately 17,1 millions of Euros.
These liabilities were calculated by the pension fund manager using the "Projected Unit Credit" method, the TV 77/73 mortality tables and the SuisseRe 2001 handicapped tables, as well as salary increase, pensions increase and average rate of return of 2%, 0% e 5%, respectively.
The total of the responsibilities of the Salvador Caetano Pension Fund as at 31st December 2009 ascended to 19.757.126 Euros.
| The allocation of this amount can be resumed as follows: | |
|---|---|
| Defined Benefit Plan | 17.083.470 |
| Defined Contribution Plan | 2.673.656 |
The movements in the Fund responsibilities in the period of 2009 and regarding the "Defined Benefit" plan can be resumed as follows:
| Responsibilities as of 1 January 2009 | 16.807.692 |
|---|---|
| Current services costs | 145.492 |
| Interest costs | 812.610 |
| Gains/ Losses actuaries | 428.651 |
| Pension payments | (1.110.975) |
| Responsibilities as of 31 December 2009 | 17.083.470 |
The movement in net assets of the Fund during 2009 can be resumed as follows:
| Defined benefit | Defined | ||
|---|---|---|---|
| Items | plan | contribuition plan | Total |
| Net assets Fund as of 31 December 2008 | 16.489.683 | 2.242.322 | 18.732.005 |
| Contributions | 14.931 | 205.085 | 220.016 |
| Return of Fund assets | 1.480.843 | 226.249 | 1.707.092 |
| Pension payments | -1.110.975 | -1.110.975 | |
| Net assets Fund as of 31 December 2009 | 16.874.482 | 2.673.656 | 19.548.138 |
As of 31 December 2009, Toyota Caetano had assumed the following commitments in favor to others entities:
| Responsibilities | Value |
|---|---|
| S.C. UK (GBP 2.000.000,00) | 2.244.921 |
| CONTRAC GMBH | 2.500.000 |
| CUSTOMS SERVICE | 8.500.000 |
| Others | 2.116.150 |
During 2009, the movement in Provisions was as follows:
| Items | Opening Balances |
Increases | Utilisation | Transfers (Note 21) |
Ending Balances |
|---|---|---|---|---|---|
| Provision for Other Risks and Charges | 2.596.546 | -19.731 | 2.576.815 |
As of 31 December 2009 Toyota Caetano share capital was represented by 35.000.000 bearer shares, totally subscribed and realized, with a nominal value of 1 Euro.
| - Grupo Salvador Caetano (S.G.P.S.), S.A. | 60% |
|---|---|
| - Toyota Motor Europe NV/SA | 27% |
The movement in equity accounts, during the first semester 2009 was as follows:
| Items | Opening Balances |
Increase | Decreases | Transfers | Ending Balances |
|---|---|---|---|---|---|
| Share Capital Adjustments to Financial Investments (Notes 10 and 21) Revaluation Reserve Legal Reserve Other Reserves Net Income for the Year |
35.000.000 -22.853.306 6.195.184 7.498.903 74.217.796 3.176.750 |
5.443.819 | -2.850.000 | 326.750 -326.750 |
35.000.000 -22.853.306 6.195.184 7.498.903 74.544.546 5.443.819 |
The decrease in equity during the period ended 31 of December 2009, was due to the deliberation of the General Shareholders' Meeting held on 30 April 2009, to distribute dividends amounting Euros 2.450.000 and bonus to Employees and Governing Bodies of Euros 400.000.
The movements in "Transfers" were due to the application of the profit of the year 2008 as mentioned above.
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 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 capitalized or used to absorb accumulated losses once other reserves have been exhausted.
The revaluation reserve results from the revaluation of tangible fixed assets in accordance with current legislation (Note 12). This reserve is not available for distribution but may be capitalized or used in other ways specified in legislation.
The cost of goods sold and consumed for the year ended in 31 December 2009 was as follows:
| Items | Goods | Raw Materials | Total |
|---|---|---|---|
| Opening Balances Purchases Closing Balances |
52.877.147 184.761.558 33.933.811 |
14.648.842 25.323.864 7.782.071 |
67.525.989 210.085.422 41.715.882 |
| 203.704.894 | 32.190.635 | 235.895.529 |
The variation of production for the year ended in 31 December 2009 was as follows:
| Finished and | |||
|---|---|---|---|
| Items | Intermediate | Work in | Total |
| Goods | Progress | ||
| Closing Balances | 3.820.977 | 7.066.213 | 10.887.190 |
| Opening Balances | 6.876.239 | 7.178.424 | 14.054.663 |
| -3.055.262 | -112.211 | -3.167.473 |
The remuneration of the members of Toyota Caetano Governing Bodies during 2009 was as follows:
| Board Members | Amount |
|---|---|
| Board of Directors | 580.239 |
| Shareholder's Assembly | 758 |
| Board of Auditors | 22.381 |
Sales and services rendered by geographic markets, in the year ended 2009, was as follows:
| Items | Internal Market |
External Market |
Total |
|---|---|---|---|
| Light vehicles | 211.131.072 | 17.597.656 | 228.728.728 |
| Heavy vehicles | 7.797.838 | 327.702 | 8.125.540 |
| Industrial vehicles | 10.709.893 | 375.775 | 11.085.668 |
| Spare Parts and Accessories | 40.305.111 | 1.026.687 | 41.331.798 |
| Others | 5.543.158 | 6.489 | 5.549.647 |
| 275.487.072 | 19.334.309 | 294.821.381 |
The financial income and expenses for 2009 and 2008 comprise:
| Costs and Losses | Dec'09 | Dec'08 |
|---|---|---|
| Interest | 2.663.694 | 5.380.752 |
| Unfavourable Exchange Rate Differences | 94.140 | 530.230 |
| Cash Discount Granted | 11.896 | 23.662 |
| Other Financial Costs | 269.246 | 147.842 |
| Net Financial Expenses | -2.510.602 | -4.745.564 |
| 528.374 | 1.336.922 |
| Income and Gains | Dec'09 | Dec'08 |
|---|---|---|
| Interest | 240.784 | 579.001 |
| Dividends | 566.587 | |
| Favourable Exchange Rate Differences | 272.101 | 177.284 |
| Obtained Cash Discounts | 14.613 | 13.352 |
| Other Financial Income | 876 | 698 |
| 528.374 | 1.336.922 |
The extraordinary income and expenses for 2009 and 2008 comprise:
| Expenses | Dec'09 | Dec'08 |
|---|---|---|
| Donations | 48.370 | 90.585 |
| Losses on Inventories | 75.338 | 104.965 |
| Losses on Fixed Assets | 40.993 | 25.290 |
| Fines and Penalties | 144.907 | 15.226 |
| Other Extraordinary Expenses | 9.141 | |
| Net Extraordinary Income | 2.743.700 | 1.722.545 |
| 3.053.308 | 1.967.752 |
| Income | Dec'09 | Dec'08 |
|---|---|---|
| Tax Recover ( Note 6) | 36.770 | 205.754 |
| Gains on Inventories | 261 | |
| Gains on Fixed Assets | 304.713 | 341.806 |
| Reduction of Depreciations and Provisions | 1.171.901 | 978.994 |
| Other Extraordinary Income (Note 53) | 1.539.663 | 441.198 |
| 3.053.308 | 1.967.752 |
The liability caption "State and other Public entities", as of 31 December 2009, does not include outstanding overdue debts, and comprise:
| Items | Amount |
|---|---|
| Corporate Income Tax for the Year 2009 | 2.088.871 |
| Corporate Income Tax for the Year 2009 (RETGS) | 914.979 |
| Corporate Income Tax(payments in advance) for the Year 2009 | -839.286 |
| Sub-Total (Note 6) | 2.164.564 |
| Corporate Income Tax for the Year 2008 (RETGS) | -953.739 |
| Vehicles Tax | 2.439.866 |
| Custom Duties | 771.895 |
| Value Added Tax | 6.701.145 |
| Other Tax | 555.531 |
| Total | 11.679.262 |
As of 31 December 2009, bank loans of short term, paying interests at market rates, can be detailed as follows:
| Commercial Paper Programs | 40.000.000 |
|---|---|
| Current loans | 4.970.000 |
| --------------- | |
| 44.970.000 | |
| ========= |
With the closure of the project application No. 00/07099 to the Support Program POE 1.2 SIME A AICEP (Agency for Investment and External Commerce of Portugal, EP) granted a support refundable with the following plan of reimbursement (Note53):
| 2011 | 210.612 |
|---|---|
| 2012 | 545.355 |
| 2013 and following | 1.363.391 |
| -------------- 2.119.358 ======== |
As of 31 December 2009, these items were as follows:
| Accrued Income | |
|---|---|
| Bonus | 2.200 |
| ===== | |
| Deferred Costs | |
| Multi-annual maintenance of fixed assets | 138.631 |
| Insurance | 211.913 |
| Interest from Commercial Paper Programs | 120.196 |
| Other | 76.246 |
| -------------- 546.986 |
|
| ======== | |
| Accrued Costs | |
| Vacations pay and bonus | 2.231.458 |
| Sales Campaigns | 1.873.055 |
| Anticipated costs related with sold vehicles | 1.299.782 |
| Car Tax related with disposed vehicles | |
| not registered | 693.073 |
| Warranty Claims | 279.201 |
| Interest | 251.618 |
| Royalties | 53.010 |
| Insurance | 128.418 |
| Other | 590.646 |
| -------------- 7.400.261 |
|
| ======== | |
| Deferred Income | |
| Investments Support (Note 53) | 541.731 |
| Debtors interest | 161.479 |
| Program of Qualification and Employment for | |
| the Automotive Industry (PASA) (Note 53) |
59.935 |
| Others | 1.051.453 |
| -------------- 1.814.598 |
|
| ======== | |
The detail of the movements in captions subsidies and support received during the exercise 2009 is as follows( Introduction and Note 3 al g):
| Considered | Deferred to | ||||
|---|---|---|---|---|---|
| PROGRAM | Subsidies | Refundable | in the period | future | |
| Received | (Note 51) | Not Refundable | (Note 46) | (Note 52) | |
| POE1.2 – SIME A application 00/07099 | 3.953.379 | 2.119.358 | 1.834.021 | 1.320.313 | 513.708 |
| SIME IDT - OPTIMO SEVEN | 208.708 | 208.708 | 180.685 | 28.023 | |
| sub-total for subsidies to fixed and intangible assets | 4.162.087 | 2.119.358 | 2.042.729 | 1.500.998 | 541.731 |
| Program of Qualification and Employment for the Automotive Industry (PASA) | 662.755 | 662.755 | 602.820 | 59.935 | |
| Operational Program for the Human Potencial (POPH) | 1.013.578 | 1.013.578 | 1.013.578 | ||
| sub-total for operating subsidies | 1.676.333 | 1.676.333 | 1.616.398 | 59.935 |
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, 2008 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 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 responsibilities in this process.
These financial statements are a translation of financial statements originally issued in Portuguese in accordance with generally accepted accounting principles in Portugal and the format and disclosures required by the Portuguese Official Chart of Accounts ("Plano Oficial de Contabilidade – POC), some of which may not conform with or be required by generally accepted accounting principles in other countries. In the event of discrepancies, the Portuguese language version prevails.
Chartered Accountant Board of Directors
Alberto Luís Lema Mandim José Reis da Silva Ramos – President Hiroyuki Ochiai Andrea Formica Maria Angelina Martins Caetano Ramos Salvador Acácio Martins Caetano Miguel Pedro Caetano Ramos Rui Manuel Machado de Noronha Mendes
| (Euros) | ||||
|---|---|---|---|---|
| Years | ||||
| 2009 | 2008 | |||
| 1 | Sales and Services Rendered | 294.821.381 | 405.392.814 | |
| 2 | Cost of Goods | 254.732.401 | 355.280.263 | |
| 3 | Gross Profit | 40.088.980 | 50.112.551 | |
| 4 | Other Operating Costs/Profits | -2.581.028 | 254.259 | |
| 5 | Distribution Costs | 25.701.740 | 33.660.794 | |
| 6 | General & Administr Expenses | 7.114.834 | 7.805.940 | |
| Operating Results | 9.853.434 | 8.391.558 | ||
| 7 | Income from Investments On Affiliated Companies On Other Companies |
566.587 | ||
| 8 | Financial Income Related with Affiliated Companies Other |
|||
| 9 | Interest Received: Related with Affiliated Companies Other |
240.784 | 579.002 | |
| 10 11 |
Provisions and Depreciation from Investments Interest Supported: Related with Affiliated Companies |
|||
| Other | 2.663.694 | 5.380.752 | ||
| Current Results | 7.430.524 | 4.156.395 | ||
| 14 | Extraordinary Income | |||
| 15 | Extraordinary Expenses | |||
| Income Before Taxes | 7.430.524 | 4.156.395 | ||
| Income Tax for the Year | 1.986.705 | 979.645 | ||
| 19 | Net Income for the Year | 5.443.819 | 3.176.750 | |
| Net Income per Share | 0,16 | 0,09 |
CHARTERED ACCOUNT BOARD OF DIRECTORS
ALBERTO LUÍS LEMA MANDIM JOSÉ REIS DA SILVA RAMOS – President HIROYUKI OCHIAI ANDREA FORMICA MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS
RUI MANUEL MACHADO DE NORONHA MENDES
| (Euros) | |||
|---|---|---|---|
| -310.846.204 | -452.032.536 | ||
| 68.675.532 | 40.421.928 | ||
| -3.888.410 | |||
| -36.064.768 | |||
| 39.118.424 | 468.750 | ||
| -50.407 | 340.163 | -202.044 | 612.218 |
| 1.080.968 | |||
| 393.117.449 -13.595.713 390.570 |
2009 -802.520 -28.754.588 39.458.587 |
2008 506.529.921 -14.075.457 814.262 |
| Collections from: | ||||
|---|---|---|---|---|
| Investments | 5.855.010 | |||
| Tangible Fixed Assets | 3.137.163 | 3.004.698 | ||
| Investment Subsidy | 2.042.729 | |||
| Interest and Others | 2.277 | 1.931 | ||
| Dividends | 5.182.169 | 566.587 | 9.428.226 | |
| Payments to: | ||||
| Investments | -7.095.000 | |||
| Tangible Fixed Assets | -1.809.230 | -3.096.382 | ||
| Intangible Fixed Assets | -198.551 | -2.007.781 | -483.384 | -10.674.766 |
| Flow in Investing Activities | 3.174.388 | -1.246.540 |
| Collections from: | |||||
|---|---|---|---|---|---|
| Loan | 2.459.358 | 2.459.358 | 17.182.260 | 17.182.260 | |
| Payments to: | |||||
| Loan | -40.029.229 | ||||
| Lease Down Payments | -1.461.871 | -76.255 | |||
| Interest and Others | -2.481.804 | -5.616.911 | |||
| Dividends | -2.445.849 | -46.418.753 | -8.731.057 | -14.424.223 | |
| Flow in Financing Activities | -43.959.395 | 2.758.037 |
| Cash and Cash Equivalents at Beginning of Period | 3.311.130 | 718.665 |
|---|---|---|
| Cash and Cash Equivalents at End of Period | 1.984.710 | 3.311.130 |
| Net Flow in Cash Equivalents | -1.326.420 |
CHARTERED ACCOUNT BOARD OF DIRECTORS
ALBERTO LUÍS LEMA MANDIM JOSÉ REIS DA SILVA RAMOS -President
HIROYUKI OCHIAI ANDREA FORMICA MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS RUI MANUEL MACHADO DE NORONHA MENDES
1-a) Detail of collections from Investments
| 2009 | 2008 |
|---|---|
| - - |
3.319.305 2.535.705 |
| - | 5.855.010 |
| - - |
1.130.000 5.965.000 |
| - | 7.095.000 |
| ITEMS | 2009 | 2008 |
|---|---|---|
| Money Bank Deposits at Immediate Disposal Cash Equivalents Cash and Cash Equivalents |
101.250 1.846.812 36.648 1.984.710 |
101.250 3.190.512 19.368 3.311.130 |
| AVAILABILITIES AS IN BALANCE SHEET | 1.984.710 | 3.311.130 |
CHARTERED ACCOUNT BOARD OF DIRECTORS
ALBERTO LUÍS LEMA MANDIM JOSÉ REIS DA SILVA RAMOS -President
HIROYUKI OCHIAI
ANDREA FORMICA
MARIA ANGELINA MARTINS CAETANO RAMOS
SALVADOR ACÁCIO MARTINS CAETANO
MIGUEL PEDRO CAETANO RAMOS
RUI MANUEL MACHADO DE NORONHA MENDES
(Translation of a report originally issued in Portuguese)
Porto, 8 April 2010
DELOITTE & ASSOCIADOS, SROC S.A. Represented by António Manuel Martins Amaral
____________________________________________
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