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IR - Toyota Caetano Portugal informa sobre contas consolidadas referente ao 1º Semestre de 2022 - Versão Inglês

Company: Toyota Caetano Portugal, S.A. Date: 2022-09-28 Language: English Register to download
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| 01 GENERAL               | 02  |
|--------------------------|-----|
| 02 MANAGEMENT REPORT     | 04  |
| 03 CONSOLIDATED ACCOUNTS | 48  |
| 04 OPINIONS              | 111 |
| 05 OTHER INFORMATION     | 113 |
|                          |     |

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# GOVERNING BODIES

#### GENERAL MEETING BOARD

Chairman Jorge Manuel Coutinho Franco da Quinta

Vice- Chairman António José da Cruz Espinheira Rio

Secretary Alírio Ferreira dos Santos

Secretary João António Ferreira de Araújo Sequeira

#### BOARD OF DIRECTORS

Chairman José Reis da Silva Ramos

Member Maria Angelina Martins Caetano Ramos

Member Miguel Pedro Caetano Ramos

Member Tom Fux

Member Kazunori Takagi

Member Gisela Maria Falcão Sousa Pires Passos

Substitute Masaru Shimada

#### FISCAL BOARD

Chairman José Domingos da Silva Fernandes

Member Daniel Broekhuizen

Member Antonieta Isabel da Costa Moura

Substitute Maria Lívia Fernandes Alves

Substitute Akito Takami

#### STATUTORY AUDITOR

Effective Deloitte & Associados, SROC S.A.

Substitute João Carlos Henriques Gomes Ferreira

# NOMINATION, EVALUATION AND REMUNERATION COMMITTEE

Effective Alberto Luis Lema Mandim

Effective Maria da Conceição Monteiro da Silva

Effective Francelim Costa da Silva Graça

![](_page_4_Picture_0.jpeg)

![](_page_4_Picture_1.jpeg)

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INDEX

INTRODUCTION

MAIN INDICATORS OF THE GROUP

OUR BUSINESS MODEL

OUR PEOPLE

OUR CONTEXT

OUR COMPANIES IN THE FIRST HALF AND OUTLOOK FOR THE SECOND HALF OF 2022

THE PERFORMANCE OF THE TOYOTA CAETANO PORTUGAL GROUP

OTHER INFORMATION

DECLARATION

SUBSEQUENT EVENTS AND MAIN RISKS AND UNCERTAINTIES FOR THE SECOND HALF OF 2022

INFORMATION ON THE PARTICIPATION OF THE MANAGEMENT AND SUPERVISORY BODIES OF TCAP

QUALIFIED HOLDINGS

FORM

.

#### INTRODUCTION

In accordance with article 246, number 1, subparagraph b) of the Portuguese Securities Code, the following interim report was prepared, containing for each of the companies that are part of the consolidation perimeter of Toyota Caetano Portugal, S.A. ("TCAP") an indication of the important events that occurred in the period and their impact on the consolidated financial statements. At the same time, albeit in a synthetic form, the main expectations for the second half of the current year are also presented.

# MAIN INDICATORS OF THE GROUP

The first half of 2022 consolidated Toyota Caetano Portugal's commitment to society, seeking to put People first and develop actions that lead to a better, more sustainable and more inclusive future.

![](_page_7_Figure_4.jpeg)

![](_page_7_Figure_5.jpeg)

### OUR BUSINESS MODEL

Operating a sustainable, progressive and profitable business and having this as a great place to grow and work.

We are the most progressive and sought-after mobility brand on the market, so we actively work to achieve carbon neutrality by 2050 with accessible and flexible solutions for the benefit of the People and the Community.

Our business model follows the Toyota Way Philosophy – the Toyota Model is built on two pillars: Respect for People, which encompasses Respect and Teamwork; and Continuous Improvement, which encompasses the concepts of Challenge, Kaizen and Genchi Genbutsu.

The definition of Toyota's values and way of working is as follows:

![](_page_8_Figure_7.jpeg)

- Challenge: building a long-term vision, accepting challenges with courage and creativity to make our dreams come true;
- Kaizen: continuously improve our operations, permanently stimulating innovation and evolution;
- Genchi Genbutsu: "going to the source" to find the facts to make the right decisions, build consensus and achieve our goals efficiently;
- Respect: encouraging personal and professional growth, sharing development opportunities and maximizing individual and team performance;
- Teamwork: respecting others, making every effort to understand each other, taking responsibility and doing our best to build mutual trust.

The Toyota Caetano Group is composed by the operating companies represented in the organization chart below:

![](_page_9_Figure_4.jpeg)

# 

Toyota Caetano Portugal, S.A. is the parent company of this Group; this is where the following activities are concentrated:

 Toyota and Lexus Division – is the business unit of Toyota Caetano Portugal appointed by Toyota Motor Europe, which holds the exclusive activity of Importer of the Toyota and Lexus Brands, both in the marketing and sale of new vehicles and in reliable used vehicles, through its Exclusive TUC (Trusted Used Toyota) and Lexus Select Programs, complemented by the sale of original Toyota and Lexus parts and accessories. This segment also includes the activity of the Toyota and Lexus Hub, where all vehicles are prepared for delivery to customers.

For the sale of the aforementioned products, Toyota Caetano Portugal has a network of Toyota Authorized Dealers and Repairers, appointed by it and permanently monitored, always with a spirit of exceeding Customer expectations;

- Industrial Equipment Division import, marketing (sale and rental), after-sales activity of industrial machines (counterweight forklift trucks and warehouse equipment), as well as business services and solutions, such as shortterm rental, used and reconditioned, assistance, maintenance contracts, sale of parts and fleet management of said equipment;
- Ovar Manufacturing Division (industrial segment) manufacturing and assembly of Toyota vehicles as well as components for buses.

![](_page_9_Picture_11.jpeg)

Caetano Auto, S.A. is the company comprising 11 Toyota dealerships and 7 Lexus dealerships. It also has the representation of the brands Caetano Colisão and GlassBack. It is present from Minho to Algarve with 26 Showrooms and Workshops.

Caetano Auto has its origins in 1968, with the arrival of Toyota in Portugal, and over the years more Toyota retail companies were acquired and created. In 2002, these companies merged, thus constituting a single company – Salvador Caetano Comércio Automóveis, currently Caetano Auto, S.A..

Caetano Auto holds stakes in 2 companies:

- Destaque Mourisco Sociedade Imobiliária, Lda: company constituted with the objective of operating the subdivision of a land that Caetano Auto partly owns in Portimão. It is a partnership with owners of other parcels of the same land. This company had no operational activity in 2022;
- Salvador Caetano Seguros Mediação Seguros Unipessoal, Lda: is an insurance mediation company; specialized in this area, complements the services already provided by Caetano Auto to its customers. It offers several auto and credit insurance options, having protocols with various financial entities and insurance companies. In addition to offering insurance, it also manages the portfolio, both in terms of renewals and in the event of a claim. Its objective is to always be close to the customer and complete the entire purchase cycle for our customers. This company had no operational activity in the first half of 2022.

![](_page_10_Picture_5.jpeg)

Caetano Auto CV, S.A. is the entity responsible for importing and marketing the Toyota brand for the Cape Verdean market.

Founded in 1993, it is one of the pioneer companies in the expansion of the Salvador Caetano Group on the African continent.

![](_page_10_Picture_8.jpeg)

Caetano Renting, S. A. is the company dedicated to the activity of renting vehicles without a driver, essentially of the Toyota and Lexus brands, to various customers such as rent-a-car, other large customers, as well as occasional rentals to individuals.

Created in 1993 as Finlog, Kinto is dedicated to the management of car fleets and operational vehicle rental. The Company is currently owned by KINTO EUROPE GMBH (a company belonging to the Toyota Group – Motor Corporation) and by Toyota Caetano Portugal, S.A..

Also at the end of 2021, the Company invested in a rebranding process and is increasingly dedicated to investing in new products for the automotive market, based on smart, easy-to-use and environmentally friendly mobility concepts.

Kinto offers a seamless experience across modes of transport and payment methods, from car-sharing to flexible subscriptions, to ensure that all customer needs are met in a single solution.

Kinto Portugal has an associate in Senegal (Caetano Renting Senegal, S.A.) whose mission is to replicate Kinto Portugal's activity for that market.

![](_page_11_Picture_2.jpeg)

CaetanoBus, a company owned in partnership by Toyota Caetano Portugal, S.A. and by Mitsui & Co., Ltd., is the largest manufacturer of bus bodies and buses in Portugal.

It is at CaetanoBus that all the industrial activity of manufacturing bodies, buses and minibuses, with different specifications, intended for urban transport, tourism and airport services is concentrated.

Most of its products are destined for export and are at the service of transport operators all over the world. It is a company that uses technology, innovation and design to always be one step ahead, closer to the future.

CaetanoBus has 2 subsidiaries:

COBUS Industries GmbH is a global provider of ground support equipment and mobility solutions for airports, based in Wiesbaden, Germany. It was founded in 1983 and is currently owned by CaetanoBus, as the majority shareholder, and by Daimler Truck AG. It is a leader in the development and supply of platform buses, related services and integrated solutions. The company's customers are mainly airport operators, airlines and handling companies. With over 5.000 buses sold and in operation at around 350 airports in 100 countries, it achieves a significant global market share.

The product portfolio includes buses with different specifications, depending on the capacity required by the customer, optionally powered by diesel or fully electric engines. The company's focus will continue to be the development of advanced and sustainable technologies, especially in digitization and e-mobility.

![](_page_11_Picture_10.jpeg)

Caetano UK is the CaetanoBus company responsible for the sale, after-sales and supply of parts for Caetano buses present in the UK market. Caetano UK is located in the Midlands and was established about40 years ago.

The United Kingdom is one of the main markets for CaetanoBus, with the famous National Express buses and, since 2020, the e.City Gold urban buses, at the service of Transport for London with the operator Abellio.

### OUR PEOPLE

The first half of 2022 was a challenging period for Toyota Caetano Portugal. With society still recovering from the last few years of the pandemic, responsible for bringing profound changes to the daily work of all companies and to the global market, Europe and the world are now facing the uncertainty of the economic and financial markets generated by the conflict in Ukraine.

Toyota has a long history of Social Responsibility. Over the more than 50 years of the brand's history in Portugal, there are many examples of community support initiatives. Thus, as a result of these events, it immediately joined forces in providing assistance to Ukraine and its refugees. It was one of the first companies to express its readiness to welcome Ukrainian citizens to the Ministry of Economy through training and professional integration.

Despite this context, the mood of the labour market was one of optimism, with companies trying to respond to the new needs of their professionals. Toyota Caetano Portugal was no exception and continues to reinforce its mission and value proposition as a differential for attracting and retaining People.

Safety, flexibility, professional development opportunities and commitment to the health and well-being of Employees continue to be privileged, thus reinforcing our commitment to People.

We maintain our belief in facilitating the integration of professional and personal life and, therefore, we continue to implement practices aimed at work flexibility. The objective is to keep the focus on results and productivity, through accountability and trust in our People. In addition to the existing health benefits in general, mental health care was added, supporting all its employees in the prevention, treatment and preservation of their psychological well-being. Ser Caetano Clinic has expanded its services with the introduction of free online psychology consultations for all employees. At the same time, the Salvador Caetano Foundation added psychology consultations to its list of reimbursements for health expenses. The latter, extendable to the entire family of employees.

One of the great challenges of the current business context is the scarcity of profiles in the market. In fact, according to Eurostat<sup>1</sup> , Portugal registered greater dynamism in the labour market than the average of European Union countries. In a scenario in which there is competition for the best talent, it is essential to combine the interests of a new generation of professionals with the Company's purpose and ambition, a trend to which we have paid particular attention in the development of our People Management policies.

In order to benefit the growth of our People, we continue to give priority to their training and skills development and to invest in our talents as an engine of internal mobility. This positioning allow us to foster learning and offer new choices and career paths to our Employees.

At Toyota Caetano Portugal, performance management is based on a culture of continuous feedback. Therefore, at the beginning of this year we revisited our development and performance management process with the aim of further involving our leaders and Employees in the tools we make available. In addition, we have extended the "One to One" program, which allows for continuous feedback and contributes to the alignment of each Employee with the strategy, objectives and values of the Toyota Way.

The Academi@ Ser Caetano commitment also continues, whose mission is to support the development of our people and foster a culture of curiosity and learning, ensuring that we have the knowledge and skills necessary to face the daily challenges of a business whose vision is to lead the future of mobility.

<sup>1</sup> Eurostat (2022, Maio). Labour market slack – annual statistics on unmet needs for employment. Accessed in August 2022, on https://ec.europa.eu/eurostat/statistics-

explained/index.php?title=Labour\_market\_slack\_%E2%80%93\_annual\_statistics\_on\_unmet\_needs\_for\_employment

The changes we have witnessed in this sector increasingly require the retraining of our Employees, so planning the skills of our workforce is a priority for us. To respond to these challenges of the future, it is also critical to have agile and Peoplefocused leaders. Among the most relevant points of our Leadership Program is a leadership practiced with proximity and respect for People, orientation towards continuous improvement and Genchi Genbutsu ("go to the source" and verify the facts for yourself) and focus on the autonomy of teams and development of Employees.

This semester is also marked by the delivery of the Kaizen awards, an initiative that recognizes the best examples of our philosophy of continuous improvement. Kaizen methodologies are fundamental in the day to day of the organization. The "It's through sharing that we get along" ("A Partilhar é que a Gente se Entende") initiative, online sessions open to employees, are also important to disseminate the best practices that we have between doors and help in organizational alignment and to foster the Toyota culture.

The actions and projects described here reflect our commitment to People, continually making Toyota Caetano Portugal an excellent place to live, grow and work.

### OUR CONTEXT

The demands of these times remind us of the importance of joining efforts for a better tomorrow. A tomorrow with more equity, more opportunities, which protects People, the Planet and its resources. A more sustainable tomorrow. Focused on this need, the last few months have seen important advances in the development and implementation of Toyota Caetano Portugal's sustainability strategy, embodied in the "Be Sustainable" ("Ser Sustentável") Program.

At Toyota Caetano Portugal we are committed to the priorities and aspirations for a global sustainable development. Therefore, we align our activities with the UN's Sustainable Development Goals, intrinsic to the People and Planet pillars, with which we guide our strategy.

Supported by strict Governance policies, the last semester represented the creation of the indispensable mechanisms to monitor our performance. Based on five fundamental axes, in the People pillar, we assume our commitment through: diversity and inclusion, reconciling personal and professional life and knowledge. In turn, in the Planet pillar, we are committed to: sustainable energy and carbon neutrality, circular economy and water resources.

This strategic consolidation results in the materialization of Toyota Caetano Portugal's commitment to operating an increasingly active business in building a fair, balanced and responsible future.

#### OUR COMPANIES IN THE FIRST HALF AND OUTLOOK FOR THE SECOND HALF OF 2022

The first half of 2022 was, for Toyota Caetano Portugal, the continuation of a period of resilience in unknown, uncertain and tendentially unfavourable contexts.

The different activities of Toyota Caetano Portugal, through its People and processes, faced and overcame the difficulties they encountered.

# IMPORT AND DISTRIBUTION ACTIVITY OF TOYOTA AND LEXUS VEHICLES

#### THE FIRST SEMESTER OF 2022

#### I. Framework of the Light Vehicles Market

After two years strongly marked by the negative impacts of the various COVID-19 waves, which greatly conditioned the performance of the light vehicle car market, expectations for the current year pointed to a rapid and expressive recovery of the car market.

However, the strong supply restrictions that had already occurred in the second half of 2021 by semiconductor producers continued throughout the first half of 2022, which, together with the outbreak of the war in Ukraine and its impact on suppliers of various components, affected the entire automotive industry which found itself unable to comply with the planned production plans, thus being prevented from obtaining a volume of supply corresponding to the progressive growth in demand.

As a result of this situation, the evolution of the automobile market in the first half of the year registered an accumulated drop of 10% compared to the previous year, with this drop being much more expressive in the Commercial Vehicles market, which registered a 23% decrease, while in the Passengers Vehicles market the drop was smaller with only 7%.

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#### II. Toyota Vehicles

Contrary to what was seen in the overall market, Toyota continued to stand out for presenting an expressive growth of 16%, which corresponded to a total of 6.624 units in the first semester and the rise from 6th to 3rd place in the total light vehicle market.

This sales volume corresponded to a total market share of 7,6%, which thus registered a growth of 1,7 p.p. compared to the same period in 2021.

Breaking down this performance by sub-markets:

- In Passengers Vehicles, Toyota presented a growth of 19%, with a corresponding evolution of market share from 5,6% to 7,2%. Contributing to these results was the consolidation in the top places of the respective segments of the Yaris models, elected Car of the Year 2021, Corolla and C-HR, and the recent entry into new and representative segments with the new Yaris Cross models, a B-segment SUV, whose launch took place in September 2021, the Aygo X, an A-segment SUV launched in May 2022, and the plug-in hybrid version of the RAV4, very important for the business segment, as a result of the tax benefits associated with this type of vehicle motorization;
- In Commercial Vehicles, where the market dropped very significantly, the 2% growth led to a significant increase in market share from 7,6% to 10,1% and a rise from fifth to fourth place. This growth was mainly supported by the new Proace City model, which competes in a segment that represents more than 50% of the Light Commercial Vehicles market, and by the Hilux model, which continues to lead the pick-up segment for the tenth consecutive year.

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#### III. Premium Market Framework

As in the total market for Light Vehicles, and for the same reasons, the Premium segment recorded a drop of 10% compared to the previous year, representing 24% of the total market for Passenger Light Vehicles.

![](_page_17_Figure_4.jpeg)

#### IV. Lexus Vehicles

The high and immediate success represented by the launch of the NX model, the first Lexus model with a Plug-in Hybrid engine, and which was expected to be the main pillar of the brand's growth, did not translate into sales volume in the short term due to the limitations supply that had a particularly serious impact on this model.

Likewise, and although with a lesser degree of severity, some restrictions on the supply of the UX and ES models also affected the sales potential of these models.

The main consequence of these situations was a drop in sales greater than the market and a slight drop in market share, which evolved from 1,1% to 1,0%.

![](_page_17_Figure_9.jpeg)

# OUTLOOK FOR THE SECOND SEMESTER OF 2022

#### I. Framework of the Light Vehicles Market

For the second half of the year, it is expected that, despite continued limitations in production capacity for most brands, some gradual recovery in supply is expected to enable the satisfaction of pending orders and allow the market to recover in order to end the year with a global volume in line with 2021 values.

#### II. Toyota Vehicles

The most recent prospects for production capacity point towards some expected reduction in the coming months as a result of the limitations in the availability of semiconductors and other components, as a result of the outbreak of COVID-19 registered in Asia and also disturbances at the Hilux production unit due to flooding at the Factory in South Africa in the second quarter.

Therefore, it is to be expected that these supply difficulties will be reflected in some slowdown in sales volumes compared to the first half of the year, without, however, jeopardizing the growth perspective in relation to the results obtained in the previous year.

Despite this situation, the priorities and global objectives defined include:

- Continue to focus on the brand's image and value, asserting leadership in terms of electrification through Hybrid technology, the innovative Fuel Cell technology (FCEV), through the Mirai model, and also entering the battery-electric vehicle segment (BEV), with the Toyota bZ4X model, whose sales start is scheduled for the second half of 2022;
- Capitalize on the sale of Hybrid and Plug-in Hybrid vehicles through the most representative models in terms of sales – Yaris, Corolla, C-HR, RAV4 ranges, supported, in the case of the Yaris, by the recent launch of the Yaris Cross version, which competes in a segment that represents 26% of the passenger market;
- Promote the successful launch of the new Aygo X model, a crossover with an innovative positioning in the A-SUV segment and of capital importance for attracting new and young customers to the brand;
- Continue to focus on the range of commercial vehicles, exploring new segments and areas of activity through the Hilux range, complementing the brand's vast offer with the Proace and Proace City ranges;
- Mitigate the impact of lower stock availability in some models, due to the effects of semiconductor shortages, investing in commercial actions focusing on models with greater stock availability and seeking, together with the Dealers network, to maintain the normality of sales activity with lower than usual stock levels;
- Provide a wide range of accessible and flexible mobility solutions, through the offer of exchange cycle products in order to maximize the permanence of customers and vehicles in the official network of the Brand, in true communion of efforts with our business partners such as Toyota Financial Services and the GSC Mobility company, Kinto Portugal.

#### III. Lexus Vehicles

In a context where the short-term perspectives point to the continuity of availability limitations of NX units, the priorities and global objectives go through:

- Reinforce the positioning of innovation and leadership in the area of electrification, leveraged by the expanded offer of Hybrid and Plug-in Hybrid vehicles (PHEV) of the new NX model, and by complementing the offer in the electric vehicle segment (BEV) through the new RZ model, whose sales start is scheduled for the first quarter of 2023;
- Adequately manage the high volume of orders for the NX model in order to guarantee total customer satisfaction, regardless of longer-than-normal delivery times;
- Boost sales of the models in the current range with lower delivery limitations, in particular the UX and ES models, in order to guarantee the maintenance of market share value;
- Provide a wide range of accessible and flexible mobility solutions, through the offer of exchange cycle products in order to maximize the permanence of customers and vehicles in the official network of the Brand, in true communion of efforts with our business partners such as Lexus Financial Services and the GSC Mobility company, Kinto Portugal. Parts Sales Jan-Jun'22 Parts Sales Jan-Jun'21 Variation 18.351.185 14.604.402 25,66%

# IMPORT AND DISTRIBUTION OF TOYOTA AND LEXUS PARTS

#### THE FIRST SEMESTER OF 2022

The After Sales Division earned 20.5 million euros in the first half of 2022. This amount includes the Extended Warranty and Total Assistance services, whose turnover corresponded to 761 thousand euros. In addition, 1.4 million euros were billed in parts for warranties. Accessories Sales Jan-Jun'22 Accessories Sales Jan-Jun'21 Variation 1.418.197 1.241.080 14,27%

The commercial activity of parts (genuine & national incorporation), which excludes accessories, guarantees and services, totalled 18.3 million euros. This value translates into a growth of 25,66% compared to the same period in 2021.

| Parts Sales Jan-Jun'22 | Parts Sales Jan-Jun'21           Variation |        |
|------------------------|--------------------------------------------|--------|
| 18.351.185             | 14.604.402                                 | 25,66% |

Turnover for accessories, which includes merchandising, totalled 1.4 million euros. This value is 14,27% above the turnover obtained in the first half of 2021.

|           | Accessories Sales Jan-Jun'22   Accessories Sales Jan-Jun'21   Variation |        |
|-----------|-------------------------------------------------------------------------|--------|
| 1.418.197 | 1.241.080                                                               | 14.27% |

Although there are significant growths compared to 2021, these are still signs of recovery from two atypical years, as a result of the impact of COVID-19 around the world.

This year 2022, "is surprising us" with a war in Europe that started in February and continued throughout the semester under analysis, resulting in major challenges, namely by the unprecedented increases in the cost of raw materials, fuel and logistics costs, which consequently contributed to the increase in the price of products. These logistical difficulties in transport also caused some failures in the supply of raw materials and other materials.

In view of this scenario, actions were developed by TCAP with the ultimate objective of overcoming the setbacks exposed.

We highlight some actions taken:

- Launch of the After Sales Champions Club, with a view to recognizing the best teams in this area;
- Preparation of the After Sales Strategy for the brand's new Electric Vehicles;
- Webinar "Kaizen Forum TSM/LSM" addressed to the entire network of Dealers and Authorized Repairers, for the dissemination and exchange of ideas about the future of Toyota/Lexus Workshops;
- Launch of the "Spring Campaign" with the aim of increasing Retention in the Workshops, which took place between March and May;
- Holding of the "Trade Pro 2022" Webinar for the entire Network of Dealers and Authorized Repairers, where good practices in this business were shared;
- Two Trade promotional actions to boost the sale of pieces over the counter (February/April and May/July);
- Promotion of the sale of accessories with challenges, videos and the launch of new products;
- Launch of the new Toyota website, with updated information and a more appealing design;
- Reformulation of the Toyota Notices Program, a system that periodically sends personalized information to all Customers, a tool that allows establishing an important link between Toyota customers and our workshops and of enormous importance for the After Sales Business and for Retention of clients;
- Development of systems and work tools with the Workshops Network, to promote the best experience for our Customers and facilitate the process of collecting information;
- Training for the Workshop Network, to equip Service Advisors, After Sales Managers and Technicians to be able to provide the best Experience to all Customers.

#### OUTLOOK FOR THE SECOND SEMESTER OF 2022

The second half of 2022 will remain challenging for the Toyota After Sales Activity, given the impact of the global environment.

The continuation of the war in Europe and the regional outbreaks of COVID-19 sustain many setbacks, such as the need to relocate factories located in war-affected areas, the need to look for new suppliers, the difficulties in supplying essential raw materials for the automotive production, the reduction in production levels, delays in distribution logistics chains and the consequent increase in raw materials and final products.

In this scenario, TCAP will focus on customer-oriented processes, as attentive and transparent communication is essential to keep the customer informed and their expectations in tune.

In this way, we will strive to continuously improve proactive contacts, from booking services to delivery of vehicles, covering the entire value chain.

The process of digitizing the activity will also be a strong bet to exceed the expectations of the Toyota Customer and, consequently, increase the incorporation of services/parts and accessories.

# IMPORT AND SALE / RENTAL OF INDUSTRIAL EQUIPMENT

# THE FIRST SEMESTER OF 2022

#### I. Market Analysis

| IMPORT AND SALE / RENTAL OF INDUSTRIAL EQUIPMENT<br>THE FIRST SEMESTER OF 2022 |                |                |           |            |                |            |                |           |
|--------------------------------------------------------------------------------|----------------|----------------|-----------|------------|----------------|------------|----------------|-----------|
| I.<br>Market Analysis                                                          |                | Market         |           |            |                | Toyota     |                |           |
| Forklifts                                                                      | Jan-Jun'22     | Jan-Jun'21     | Variation | 2022       |                | 2021       |                | Variation |
|                                                                                |                | 1.059          | %         | Qty        | Share          | Qty        | Share          | %         |
|                                                                                |                |                | -25%      | 254        | 31,8%<br>26,5% | 246<br>312 | 23,2%<br>22,8% | 3%<br>51% |
| Counterbalanced Forklifts Trucks                                               | 798            |                |           |            |                |            |                |           |
| Warehouse Equipment<br>TOTAL MMC (units)                                       | 1.780<br>2.578 | 1.367<br>2.426 | 30%<br>6% | 471<br>725 | 28,1%          | 558        | 23,0%          | 30%       |

With regard to Toyota, the impact of market growth was felt on a much larger scale, with 725 orders being placed, resulting in a 30% growth compared to the same period of the previous year in the number of units, corresponding to a market share of 28,1%.

#### II. Toyota Sales Performance by Segment

Regarding the Counterbalanced Forklifts segment, it can be observed that the number of units ordered grew (3%) compared to the same period last year, despite the decrease in the market for this segment of around 25%.

In the Warehouse Equipment segment, the growth in orders, in number of units, reached 51%, a substantially higher growth than the market.

# OUTLOOK FOR THE SECOND SEMESTER OF 2022

Although there is still a lot of uncertainty regarding the future, as a result of the circumstances related to the war in Ukraine, the high level of inflation and growth in interest rates, there is a positive economic climate favourable to the completion of business.

Regarding the budget, in terms of units, we believe that it will be met, despite the fact that we are faced with many constraints in the supply of machines and parts (very long delivery times) due to the disruption in supply chains and successive price increases.

# INDUSTRY - OVAR FACTORY

#### THE FIRST SEMESTER OF 2022

In terms of production, the 1st half of 2022 was marked by the increase in the daily rate to 16 units/day in the assembly activity of Land Cruiser, Series 70 ("LC70") vehicles, following the forecast of 3.005 units for the year in course. The rampup began in December 2021, with the preparation for the cadence increase to 14 units/day planned and later to 16.

The impacts of the Covid pandemic continued to be felt in the first half of the year, being, however, exacerbated by the effects resulting from the war in Ukraine: shortages of raw materials, a general increase in prices, logistical difficulties (upstream: in the receipt of material and downstream: when sending the product to the destination markets).

Also during this semester, the 1st phase of the BOSQUE TCAP Ovar Project was concluded, which aims to offset the CO2 emissions generated by the industrial unit, reduce the negative environmental impacts resulting from its activity and improve the working conditions of its employees. This project is part of the response to one of the challenges of the Toyota Environmental Challenge 2050.

- In the 1st half of 2022, Toyota Caetano Portugal Ovar Factory produced, within the scope of its main motor vehicle assembly activity, a total of 1.483 LC70 model vehicles. This value represents an increase of 57% compared to the same period of the previous year;
- In the activity Post Production Options (installation of options locally) / Pre Delivery Inspection (preparation for delivery) – PPO / PDI – 3.051 units were transformed/prepared, an increase of 13% compared to the same period of the previous year;
- Regarding the electric and hydrogen bus chassis for sale to CaetanoBus, 15 chassis were produced (below the previous year's figure), due to the reduction in customer orders.

| the electrification of the LC70 (LC70 Electric) and the development of an electric microcar; projects that could complement<br>the existing productive activity.                                                                                                                                                                                                                                                                                             | In the development area, the engineering teams remain dedicated to new projects in the area of electric mobility, namely |       |                     |       |                     |       |                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|-------|---------------------|-------|---------------------|-------|---------------------|
| In productive terms:                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                          |       |                     |       |                     |       |                     |
| <br>In the 1st half of 2022, Toyota Caetano Portugal – Ovar Factory produced, within the scope of its main motor<br>vehicle assembly activity, a total of 1.483 LC70 model vehicles. This value represents an increase of 57%<br>compared to the same period of the previous year;                                                                                                                                                                          |                                                                                                                          |       |                     |       |                     |       |                     |
| <br>In the activity Post Production Options (installation of options locally) / Pre Delivery Inspection (preparation<br>for delivery) – PPO / PDI – 3.051 units were transformed/prepared, an increase of 13% compared to the same<br>period of the previous year;<br><br>Regarding the electric and hydrogen bus chassis for sale to CaetanoBus, 15 chassis were produced (below the<br>previous year's figure), due to the reduction in customer orders. |                                                                                                                          |       |                     |       |                     |       |                     |
| Production                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2022<br>(Jan - Jun)                                                                                                      | 2021  | 2021<br>(Jan - Jun) | 2020  | 2020<br>(Jan - Jun) | 2019  | 2019<br>(Jan - Jun) |
| Toyota physical units - LC70                                                                                                                                                                                                                                                                                                                                                                                                                                 | 1.483                                                                                                                    | 1.947 | 945                 | 1.465 | 453                 | 2.393 | 1.234               |
| Transformed/prepared physical units -<br>PPO / PDI                                                                                                                                                                                                                                                                                                                                                                                                           | 3.051                                                                                                                    | 5.077 | 2.699               | 4.380 | 1.419               | 5.577 | 2.313               |
| Chassis/buses physical units                                                                                                                                                                                                                                                                                                                                                                                                                                 | 15                                                                                                                       | 39    | 22                  | 40    | -                   | -     | -                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                          |       |                     | 184   | 193                 | 197   |                     |

- Toyota Motor Europe top officials visit in the areas of supply chain, research and development (R&D), purchasing and sales, within the scope of the electric mobility projects under study;
- In May, work began on the execution of a prototype of the LC70 Electric.

# OUTLOOK FOR THE SECOND SEMESTER OF 2022

The expectation for the second half of 2022 is that the effects of the pandemic and the war in Ukraine described above will continue to have an impact on the activities currently carried out at the Ovar Factory. The commitment to the diversification of projects, in partnership with the shareholder TME, demonstrates the resilience and ability to overcome obstacles that has always characterized TCAP.

There is also the difficulty that has been felt, and with increasing impact, associated with the difficulty of hiring specialized labour and poor preparation of non-specialized workers; in this area, TCAP has a strong human resources policy, as well as training centers and Academi@ Ser Caetano to train our employees and attract young people to areas where recruitment is most difficult.

Also during the 2nd semester, the execution of the prototype of the electric microcar is planned.

![](_page_24_Picture_2.jpeg)

# THE FIRST SEMESTER OF 2022

Activity in the first half of 2022 continued to be conditioned by the context of the COVID-19 pandemic, with greater impact in the first months of the year due to absences due to mandatory isolation of employees.

In late February, Russia invaded Ukraine; since then European economies are feeling the strong economic impact of this war. Rising prices of energy and raw materials have driven inflation to record levels, additionally, both Ukraine and Russia are major exporters of metals, and this war has exacerbated the disruption of supply chains, which was already felt before due to the pandemic.

The automotive sector is still very much affected by this situation of supply chain disruption: In addition to the constant lengthening of delivery times, there is still a high degree of uncertainty as to whether delivery times will be met. The main brand represented by Caetano Auto, Toyota, has so far not been the most affected in this regard, which allowed the brand to conclude the 1st half of the year in 3rd place in the ranking of the national light vehicle market, with a share of 7,6 % (+1,7 p.p. compared to 2021).

In the new vehicle activity, the number of vehicles sold by Caetano Auto in the first half was 33,6% higher than in the same period of 2021, a performance superior to the one recorded in the national light vehicle market, which fell by 10% compared to the 1st half of 2021. However, despite this recovery, we are still 7,7% below the number achieved in the same period of 2019.

In used vehicles, in the first half of the year, there was a reduction of 11,9% in units sold compared to the same period of the previous year and a drop of 11,5% compared to the level reached in the 1st half of 2019.

| war. Rising prices of energy and raw materials have driven inflation to record levels, additionally, both Ukraine and Russia<br>are major exporters of metals, and this war has exacerbated the disruption of supply chains, which was already felt before                                                                                                                                                                                                                                                                                                                                                                | In late February, Russia invaded Ukraine; since then European economies are feeling the strong economic impact of this |            |            |                         |            |  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|------------|------------|-------------------------|------------|--|
| The automotive sector is still very much affected by this situation of supply chain disruption: In addition to the constant<br>lengthening of delivery times, there is still a high degree of uncertainty as to whether delivery times will be met. The main<br>brand represented by Caetano Auto, Toyota, has so far not been the most affected in this regard, which allowed the brand<br>to conclude the 1st half of the year in 3rd place in the ranking of the national light vehicle market, with a share of 7,6 %                                                                                                  |                                                                                                                        |            |            |                         |            |  |
| In the new vehicle activity, the number of vehicles sold by Caetano Auto in the first half was 33,6% higher than in the same<br>period of 2021, a performance superior to the one recorded in the national light vehicle market, which fell by 10% compared<br>to the 1st half of 2021. However, despite this recovery, we are still 7,7% below the number achieved in the same period of<br>In used vehicles, in the first half of the year, there was a reduction of 11,9% in units sold compared to the same period of<br>the previous year and a drop of 11,5% compared to the level reached in the 1st half of 2019. |                                                                                                                        |            |            |                         |            |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Jan-Jun'22                                                                                                             | Jan-Jun'21 | Jan-Jun'19 | Variation<br>'22 vs '21 | Variation  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                        |            |            |                         | '22 vs '19 |  |
| New vehicles Sales (units)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2.350                                                                                                                  | 1.759      | 2.547      | 33,60%                  | -7,73%     |  |

This situation of breakdown in supply chains is also having a great impact on the used car activity, where the lack of product has limited the recovery in sales volume. Considering this limited stock of used vehicles, the company is implementing a process for selecting and purchasing vehicles on the market in order to guarantee a minimum supply to meet demand.

In the After Sales service activity, using the indicator of the number of vehicles that entered our workshops, there was a number of entries in the mechanics' workshops 7,3% higher than the same period of the previous year and an 11,9% growth in entries of collision. Even so, compared to 2019, we are 18,0% lower in mechanics and 15,4% lower in collision, which negatively affects the profitability of this activity.

|                                                                                                                                                                                                                                                                                                                                                                                  |            |            |            | '22 vs '21 | Variation<br>'22 vs '19 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|------------|------------|------------|-------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                  |            |            |            |            |                         |
|                                                                                                                                                                                                                                                                                                                                                                                  |            |            |            |            |                         |
| This situation of breakdown in supply chains is also having a great impact on the used car activity, where the lack of product<br>has limited the recovery in sales volume. Considering this limited stock of used vehicles, the company is implementing a<br>process for selecting and purchasing vehicles on the market in order to guarantee a minimum supply to meet demand. |            |            |            |            |                         |
| In the After Sales service activity, using the indicator of the number of vehicles that entered our workshops, there was a<br>number of entries in the mechanics' workshops 7,3% higher than the same period of the previous year and an 11,9% growth<br>in entries of collision. Even so, compared to 2019, we are 18,0% lower in mechanics and 15,4% lower in collision, which |            |            |            | Variation  | Variation               |
|                                                                                                                                                                                                                                                                                                                                                                                  | Jan-Jun'22 | Jan-Jun'21 | Jan-Jun'19 | '22 vs '21 | '22 vs '19              |
| Number mechanics entries                                                                                                                                                                                                                                                                                                                                                         | 44.309     | 41.291     | 54.030     | 7,31%      | -17,99%                 |

In global terms, driven by the growth in sales of new vehicles and the increase in the average price of new and used vehicles, the company's turnover in the first half of 2022 was 29,5% higher than in the 1st half of 2021, remaining this number 2,9% above the pre-pandemic benchmark (2019).

| Turnover (m€)                                                                                                                                                                                                                                                | 120.044    | 92.666     | 116.694    | 29,54%                  | 2,87%                   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|------------|------------|-------------------------|-------------------------|
|                                                                                                                                                                                                                                                              | Jan-Jun'22 | Jan-Jun'21 | Jan-Jun'19 | Variation<br>'22 vs '21 | Variation<br>'22 vs '19 |
| In global terms, driven by the growth in sales of new vehicles and the increase in the average price of new and used vehicles,<br>the company's turnover in the first half of 2022 was 29,5% higher than in the 1st half of 2021, remaining this number 2,9% |            |            |            |                         |                         |
|                                                                                                                                                                                                                                                              |            |            |            |                         |                         |
|                                                                                                                                                                                                                                                              |            |            |            |                         |                         |

Despite the restrictions imposed by the context, the improvement of margins in the sale of vehicles, especially in the used car business, as well as the reduction in stock, allowed Caetano Auto to exceed the operating results estimated for the semester.

# OUTLOOK FOR THE SECOND SEMESTER OF 2022

For the second half of 2022, a great uncertainty about how the war in Ukraine will unfold and about the evolution of supply chains remains, and there is no prospect of improvement in the coming months. It is therefore expected that these two factors will continue to condition the company's activity in the second half of the year.

From a demand perspective, due to the increase in interest rates and the pressure of inflation, namely the increase in the price of fuel, energy bills and food goods, it is foreseeable that in the second half of the year the effects of a decrease in the purchasing power, both in families and in companies.

Despite this context, it is Caetano Auto's expectation to work towards the maintenance of activity indicators, continuing the strategy initiated in the previous year:

- Sustainability and energy transition: dissemination and sale of electrified vehicles (Hybrid, plug-in hybrid, electric, and fuel cell);
- Integrated and flexible mobility solutions following the MaaS concept Mobility as a Service;
- Focus on the customer and employees: to be the best dealer where we are represented (BRiT Best Retail in Town);
- Digital transformation of the business: digital marketing, video communication with customers, autonomous reception, booking online services, digitalization of administrative processes;
- Availability of complementary services/products: maintenance contracts, warranty extensions, Caetano Go loyalty card, Auto Insurance, financing.

![](_page_26_Picture_2.jpeg)

# THE FIRST SEMESTER OF 2022

#### I. Vehicle Sales Activity

| Vehicles Sales (units) | 252        | 219        | 15,07%                  |
|------------------------|------------|------------|-------------------------|
|                        | Jan-Jun'22 | Jan-Jun'21 | Variation<br>'22 vs '21 |
|                        |            |            |                         |
|                        |            |            |                         |
|                        |            |            |                         |
|                        |            |            |                         |
|                        |            |            |                         |
|                        |            |            |                         |

In 2022, a new ICE tax (Special Consumption Tax) came into force in Cape Verde, which increased the sale price of new vehicles to the public. This tax applies to all vehicles imported from 1 January of the current year.

Despite the aforementioned tax change, the Company's activity in the first half of the year surpassed the figures for the same period of the previous year; this performance was possible through careful management of the stock on 31 December of 2021 (not impacted by the aforementioned tax) and the stock acquired in 2022.

This strategy made it possible to maintain the sales volume of the previous year in almost all models, with special emphasis on Starlet and Rush. These two models represent growth in the first half of the year compared to the same period in the previous year.

Thus, in 2022, as in previous years, the Company has managed to reduce its dependence on the two main models sold (Hilux and Hiace), strengthening its product offering and mitigating the risks associated with the concentration of sales in specific models with very specific characteristics.

Meanwhile, Caetano Auto CV remains the market leader in the pick-up segment with the Hilux model, but with reduced performance compared to second place (Mitsubishi).

#### II. After Sales Activity

The tourism sector, despite the improvement seen, is still far from what it used to be and remains down (influenced not only by the drop in the number of foreign visitors, but also by the reduction in visits by emigrants to the country), significantly impacting the activity as a whole since it represents the main engine of the national economy.

In addition to the internal difficulty (related to the weak recovery of tourism), the worsening of the existing constraints in the supply chain also affects the day to day of the country and the Company: the logistical difficulty that has been felt since before the pandemic, has become more severe and more onerous in terms of cost and time.

| Meanwhile, Caetano Auto CV remains the market leader in the pick-up segment with the Hilux model, but with                                                                                                                                                                                                                                              |            |            |                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|------------|-------------------------|
|                                                                                                                                                                                                                                                                                                                                                         |            |            |                         |
| The tourism sector, despite the improvement seen, is still far from what it used to be and remains down (influenced<br>not only by the drop in the number of foreign visitors, but also by the reduction in visits by emigrants to the<br>country), significantly impacting the activity as a whole since it represents the main engine of the national |            |            |                         |
|                                                                                                                                                                                                                                                                                                                                                         |            |            |                         |
| In addition to the internal difficulty (related to the weak recovery of tourism), the worsening of the existing<br>constraints in the supply chain also affects the day to day of the country and the Company: the logistical difficulty<br>that has been felt since before the pandemic, has become more severe and more onerous in terms of cost and  | Jan-Jun'22 | Jan-Jun'21 | Variation<br>'22 vs '21 |
| Parts / Accessories                                                                                                                                                                                                                                                                                                                                     | 622.051    | 586.755    | 6,02%                   |
| Workshop (labour)                                                                                                                                                                                                                                                                                                                                       | 238.544    | 203.953    | 16,96%                  |

In the After Sales activity, there is an increase in the turnover of labour, which reflects more production, however, the volume of invoicing in parts and accessories did not follow this growth, having, nevertheless, exceeded the values of the previous year. This performance is essentially related to the customers' choice to use aftermarket parts instead of OEM (Original Equipment Manufacturer) and, as a result of the current context, the price factor is the most important factor in the customer's decision.

The performance at service stations, essentially maintenance (oil and filter changes), is also affected by the impact of the reduction in the purchasing power of the population in general; the customer sometimes opts for fractional services (oil change only instead of the basic service which also includes filter change). The way to react to this reality is to present closed price campaigns with the entire service included.

# OUTLOOK FOR THE SECOND SEMESTER OF 2022

During 2022, the focus of Caetano Auto CV will be:

- Maintain its dominant position in the sale of new Toyota brand vehicles, maximizing the range of products, thus reaching a larger target audience;
- Stimulate the parts traveling trade, which has been severely affected by the current logistical crisis;
- Improve internal processes in terms of the after-sales organization in order to be able to increase not only sales to private customers, but also through the insurance channel.

![](_page_28_Picture_2.jpeg)

### THE FIRST SEMESTER OF 2022

After two years of a pandemic and a crisis of strong dimensions, the rent-a-car companies operating in Portugal are confident in the resumption of activity, as tourist activity in Portugal in the first half of 2022 managed to surpass levels registered in 2019. This increase began to take place in April, the month in which Easter was celebrated.

However, the rent-a-car activity is being penalized by the lack of vehicles made available by the concessions that face several difficulties, namely failures in the supply chain.

![](_page_28_Figure_6.jpeg)

Despite the difficulties in supplying vehicles mentioned above, there was a sharp growth in the Caetano Renting fleet, in the months of February and March, in order to meet the high demand during the Easter period, essentially from rent-acar, which is the company's main market segment.

The first half of 2022 was concluded, with 2.769 units in the fleet, which represents a decrease of 21,25% when compared to the same period of the previous year. Contributing largely to this decrease was the significant reduction in the rental of industrial machines, which was around 61%, compared to the same period of the previous year.

#### OUTLOOK FOR THE SECOND SEMESTER OF 2022

Problems with supply chains in the automotive sector, motivated by the lack of semiconductors to be incorporated in them, combined with the pandemic crisis and the war in Ukraine, have contributed to the delay in the supply of vehicles. However, we already have around 520 more units in our portfolio for the months of July and August, for the rent-a-car segment, and a second semester with a good performance is expected.

![](_page_29_Picture_2.jpeg)

# THE FIRST SEMESTER OF 2022

Russia's invasion of Ukraine in late February 2022 introduced a high degree of uncertainty into world economies. The political conflict contributed to intensifying inflationary pressures and limiting economic dynamism in the euro area, as well as in Portugal.

Regarding the automotive market, in the first half of 2022 the number of registrations of light vehicles decreased by 10% to 87.2 thousand units, when compared to the accumulated registration of the first half of 2021. Compared to prepandemic levels (2019), the market fell by 27,5%.

The instability and the high degree of uncertainty present in the market continue to contribute to a significant increase in the extensions of operating renting contracts. In accumulated terms, in the first half of 2022, Kinto Portugal registered around 840 extensions<sup>2</sup> , which represents more than 76% of the requests registered in the same period.

The Company remains dedicated to investing in new products for the automotive market, based on integrated and intelligent mobility products that are easy to use and environmentally friendly.

Kinto increasingly intends to go beyond traditional rentals, offering the customer a product that can meet all their mobility needs and constraints.

And it is in this sense that the vehicle portfolio associated with the Kinto Flex product – which offers exceptional flexibility for all mobility needs – continues to show remarkable performance. At the end of the first half of 2022, the number of active vehicles associated with this product already represented 105% more compared to December 31, 2021.

The Company believes that the future of mobility is also based on the energy transition and, therefore, investing in the growth of its electrified vehicle fleet is also one of the pillars of growth. Kinto Portugal ended the semester with 31% of its monthly orders for this type of vehicle.

#### I. Evolution of Kinto's FSL<sup>3</sup> and FM<sup>4</sup> fleet

Following the events mentioned above, the evolution of the active fleet in the car market remains highly conditioned.

The production of a series of components for automobiles is quite compromised and has led to a high shortage in the delivery of new vehicles. In this sense, the lack of new vehicles has influenced the conclusion of new contracts with customers and, often, forced the extension of the terms of use of the current fleet.

The behaviour of the active fleet throughout the semester is similar in both periods, with Kinto Portugal ending the first semester of 2022 with a fleet of 18.692 vehicles, which represents a slight increase of 96 vehicles (about +0,5%), when compared to the same period of the previous year.

3 FSL: Full Service Lease

4 FM: Fleet Maintenance

<sup>2</sup> Extensions are defined as the extension of operating lease contracts for a period of more than 6 months.

Nevertheless, and despite the recovery compared to the same period last year, as a result of the events mentioned above, it is estimated that there will continue to be no supply capable of meeting the existing market demand and that the automotive market will continue to decline due to the lack of availability of vehicles<sup>5</sup> .

![](_page_30_Figure_3.jpeg)

#### II. Company Activity

Turnover increased slightly (+1,4%) compared to the previous period, and the pandemic that emerged in 2020 and the political crisis that broke out only in 2022 had adverse and distinct effects for both periods.

|  | '22 vs '21 |
|--|------------|
|  |            |

#### III. Stock of Used Vehicles and Sales

In the first half of 2021, the pandemic crisis and the restrictions implemented (more restrictive) led to a natural increase in the number of vehicles in stock available for sale, contributing to a deterioration in the market prices charged on vehicles.

In the second half of that year, the lack of components in the automotive market contributed significantly to the scarcity of (i) new vehicles to meet new contracts and (ii) used vehicles available for sale and, consequently, also to (iii) a high pressure from market prices on vehicles.

In the first half of 2022, we continued to see a shortage of vehicles and, therefore, high pressure on market prices for used vehicles, meaning that remarketing margins were significantly higher compared to the same period in the previous year; however, in terms of units sold, compared to the same period of the previous year, sales of used vehicles to end customers decreased by around 36%.

<sup>5</sup> The numbers presented are naturally impacted by the number of extensions mentioned above.

![](_page_31_Figure_2.jpeg)

# OUTLOOK FOR THE SECOND SEMESTER OF 2022

With the most recent political conflict between Russia and Ukraine, the growth prospects of the Portuguese economy for the coming years have been revised downwards and inflation is expected to be substantially higher. Thus, for the coming years, the Portuguese economy will face important challenges, and in order to achieve its objectives it is essential to continue to increase the qualifications of its workforce, as well as its productivity.

As far as the automotive market is concerned, the sector has invested mainly in the technological and environmental component of vehicles, but, in addition to the growing challenge to the use of electric and hybrid vehicles, the new formats for the use of vehicles are also gaining increasing relevance, as well as connected and autonomous vehicles. In Portugal, car brands are already investing heavily in digital.

Consumers are increasingly aware that owning a vehicle is not the only solution, with a wide range of solutions available on the market. The big manufacturers are already under pressure and the market already shows a shortage of vehicles.

The future lies in continuing to listen to the customer and adapting the business to their needs. In this sense, the Company's strategy is already based on the construction of a sustainable mobility offer, supported by technology that allows a unique experience for its customers and at the same time quite comprehensive, with the aim of fully meeting the mobility needs of companies and people – Mobility for all.

![](_page_32_Picture_2.jpeg)

# THE FIRST SEMESTER OF 2022

In the first half of 2022, the impact of the pandemic continued to be felt; added, still, the collateral effects of the war in Ukraine. Although the closing of deals has taken place, atypical times have continued and have slowed down the recovery of the business.

Delays in decision-making by customers and transport authorities regarding the acquisition of new buses and the launch of national and international contests, due to the unavailability/delay of European funds, continue to penalize sales growth.

The contract with National Express in England has been renewed for the manufacture and supply of up to 200 tour buses between 2022 and 2025.

This semester was marked by the start of sales of CaetanoBus' zero-emission buses in Italy and by the roadshow held in several cities with strategic operators in that country. Presence in international fairs is a strong bet for CaetanoBus in 2022, having already been present at fairs in Germany and France. Demonstrations of CaetanoBus buses have been carried out with strategic operators in Portugal, Spain, France, Germany and Italy.

The Toyota Caetano co-branding of CaetanoBus' zero-emission buses is leveraging its international presence, with increased sales of its zero-emissions city buses, in international markets such as German, French, English and Spanish, with special emphasis on hydrogen electric mobility. The first urban hydrogen bus for Australia was also manufactured and delivered.

With a view to decarbonizing urban transport in several European cities, Toyota Motor Europe has been promoting strategic partnerships associated with zero-emission mobility, in order to accelerate the development of technologies, boost the commercial expansion of zero-emission mobility solutions and position buses from CaetanoBus as a reference product.

CaetanoBus continues to invest in new markets and products, continually investing in R&D, as it intends to remain at the forefront, thus expanding its portfolio by 2023. In a perspective of sustainable growth, shareholders Toyota Caetano Portugal and Mitsui & Co, don't give up the strategic plan of expansion and growth of CaetanoBus and, in this context, they carried out once again a capital increase of 10 million euros in June of this year, thus reinforcing their commitment to the Company.

In May, CaetanoBus was distinguished with the IRGAwards award (competition organized by Deloitte), in the "Transformation Award" category for the development of its hydrogen-powered bus (h2.CityGold).

In the first half of 2022, 14 more units were sold when compared to the same period in 2021.

![](_page_33_Figure_2.jpeg)

# OUTLOOK FOR THE SECOND SEMESTER OF 2022

Despite the slow recovery, and if the war in Ukraine does not adversely affect supply chains, it is expected that almost twice as many units will be sold in 2022 compared to 2021.

At the same time, we are convinced that the release of European funds with a view to the decarbonization of European cities will be a lever in the development and promotion of the business. However, the expected growth will be insufficient to place the Company at levels of profitability similar to 2019, and it is expected that net results in 2022 will remain in negative territory.

CaetanoBus is committed to contributing to a more sustainable society, with zero-emission mobility solutions.

Next year, CaetanoBus will not give up its investment path in the commitment to innovation and the development of new production and process standards. In this regard, shareholders are committed to supporting the Company in order to carry out its strategic growth plan.

# THE FIRST SEMESTER OF 2022

With a slow recovery of activity, and far from the levels of the pre-pandemic period, Cobus ended the first half of 2022 with the sale of 5 more units than the budget. In addition to the "quantity of margin" effect, due to an increase in sales, the quality of margin was also 1,1% higher than estimated.

The important contribution of profitability due to the increase in sales, associated with an effort to reduce expenses, allowed EBITDA to be placed on positive ground in the amount of 320k€, above the approved budget, compared to -177k€ for the same period of the previous year.

![](_page_34_Figure_6.jpeg)

# OUTLOOK FOR THE SECOND SEMESTER OF 2022

Despite ending the first semester with 5 more units sold than the budget, Cobus expects to end the year 2022 with a deviation in turnover of 46 units less than estimated. However, the loss of results from the units sold will be offset by the savings achieved in other areas of expenditure. Thus, it is expected that the margin loss will be neutralized and results similar to those estimated will be obtained.

![](_page_35_Picture_2.jpeg)

## THE FIRST SEMESTER OF 2022

As a reflection of the increase in activity by local operators, 2022 began with a good level of sales and after-sales activity at Caetano UK.

The Levante supply contract with National Express in the UK has been renewed for a new Euro 6 chassis version of the Levante III to supply up to 200 units between 2022 and 2025, in addition to placing a new order of 66 vehicles for delivery between 2022 and 2023 referring to the last units of the current contract. Also, in the first half of the year, part of the 20 units of the previous order received in August 2021 began to be delivered. Thus, Caetano UK ends the first half of 2022 with 17 units delivered.

The direct effect of Brexit began to be felt more intensely in 2022, when the new customs rules came into full force, which led to an increase in bureaucracy and transit time in imports, whether for buses or spare parts for stock.

During this first semester, several demonstrations of battery electric and hydrogen electric buses were carried out with strategic operators, with emphasis on the three-month demonstration in the city of Teesside, supported by the government agency Innovate UK, with a view to expanding the range of customers and potential new business, which are expected to materialize in 2022.

In the first half of 2022, 17 buses were sold, 2 more than in the same period of 2021 (15 units), and, compared to the first half of 2020, 19 fewer (36 units). In terms of turnover, Caetano UK went from £5m in the first half of 2021 to £6m in the same period of 2022; EBITDA went from £30m to £294m, for the first 6 months of 2021 and 2022, respectively.

![](_page_35_Figure_9.jpeg)

# OUTLOOK FOR THE SECOND SEMESTER OF 2022

2022 will be a year of recovery for Caetano UK.

For the second semester, the expectation is to continue with the deliveries of Levante III. With delivery forecast of 62 additional vehicles.

At the same time, the deal with the operator Abellio London (which has operated 34 Caetano electric buses since 2020) will be reinforced with the delivery of more units in the second half of the year. Caetano UK thus strengthens its position of after-sales assistance for electric buses in London.

Additionally, as a result of the bus demonstration actions carried out in 2021 and in this first semester, as well as the growing appetite for green mobility (namely hydrogen technology) of strategic operators, it is expected that this year 2022 will see the corresponding sales materialize.

### THE PERFORMANCE OF THE TOYOTA CAETANO PORTUGAL GROUP

# WORLD ECONOMY

According to the OECD's June forecasts, the world economy is expected to grow by 3% in 2022, a significantly lower expansion than the 4,5% projected by the same organization in December. Despite the deceleration pointed out, the world economy is expected to continue to grow beyond 2022, with the same organization forecasting real growth in world GDP of 2,8% in 2023.

Constraints still visible in supply chains, high prices for energy and commodities in general, as well as a historically strong labour market have strongly contributed to inflation in the universe of OECD countries, which could reach 8,5% in 2022. Improvements in global logistics and ongoing changes in the monetary policy of the various states could contribute to a reduction in the level of inflation, despite the great uncertainty surrounding the evolution of the conflict in Ukraine.

# EUROPEAN UNION

According to the European Commission (EC) summer projections, the European economy will show growth over the entire time horizon of the forecast, presenting an expansion of 2,7% of GDP in 2022 and 1,5% in 2023. Inflation is expected to go up by 8,3% in 2022 and 4,6% in 2023. The impact of the conflict in Ukraine led to a downward revision of growth and an upward revision of inflation, but the growth dynamics remains, as a result of the good moment of the recovery experienced in 2021, simultaneously with a resilient labour market, more moderate inflation, support for the accumulation of savings amassed during the pandemic and the operationalization of Recovery and Resilience funds.

In the Euro zone, the European Central Bank has signalled changes in monetary policy, which has been strongly accommodative so far. Specifically in terms of asset purchase programs and key interest rates, economic agents must be prepared to operate under more restrictive financial conditions in accordance with the bank's guidelines, despite its flexibility to adjust, in rhythm or direction, its monetary policy decisions according to economic scenarios that will materialize. Within the framework of technical assumptions of the EC's summer forecasts, the 3-month Euribor used was 0,3% in 2022 and 2,2% in 2023, figures based on market instruments.

### PORTUGAL

According to the European Commission's summer projections, the Portuguese economy is expected to grow by 6,5% in 2022, reflecting a strong carry-over effect, moderating growth in 2023 with a GDP expansion of 1,9%. Strong expansion in the export of services contributed strongly to the growth trend, namely in the tourism sector, although several indicators in this sector are still at pre-pandemic levels. According to the EC, private consumption, industrial production and construction may decelerate their pace of expansion, in line with lower GDP growth over the period.

According to the same forecast, inflation in 2022 is expected to be 6,8%, with a further moderation to be felt in 2023 to 3,6%. The main drivers of this indicator are energy and food prices, with a visible effect on services as well, as a result of previous repressed demand as well as the pass-through of energy prices in transport. A strong labour market, with an unemployment rate according to EC spring forecasts for 2022 and 2023 of 5,7% and 5,5%, respectively, could generate some pressure on prices via potential salary increases.

# CONSOLIDATED ANALYSIS OF THE TOYOTA CAETANO PORTUGAL GROUP

During the first half of 2022, it was possible to verify a solid growth trajectory despite the negative effects that the conflict in Ukraine has been spreading throughout Europe. The increase in fuel prices, generalized inflation and the persistence of constraints in the supply of semiconductors, which still arose in a pandemic context, and which continue to negatively influence the availability of vehicles for delivery, are conditioning the entire activity of Toyota Caetano Portugal.

However, despite this challenging context, with a continuous effort on the part of all stakeholders, Toyota presents a growth of 24,8% in turnover compared to the same period of the previous year, thus reaching 232 million euros billed, even exceeding pre-pandemic values (229M€ in Jun'19).

![](_page_38_Figure_2.jpeg)

Gross profit followed the growth in turnover, with even a slight increase in the weight of this indicator in turnover (0,4 p.p.) when compared with the same metric in relation to the first half of 2021. This evolution was motivated by the effort made by the companies in stock management, sales and cost containment. In fact, the weight of external supplies and services as well as the weight of personnel expenses decreased in relation to the same indicators of the same period of the previous year. EBITDA had a positive behaviour with an evolution of 23,4% when compared to the same indicator in 2021.

Also in the first half of 2022, a property was sold, contributing positively (292k€) to the consolidated result of the Toyota Caetano Portugal Group.

The Group continues to reflect the ongoing policy of managing the resources available for the constitution of an adequate capital structure.

The Group's degree of financial autonomy stands at 44,0%, 0,55 p.p. below the one recorded on 31 December 2021; this variation is related to the increase in rent-a-car activity, which translates into an increase in the value of tangible fixed assets.

With the purpose of summarizing the evolution of the performance of the Toyota Caetano Portugal Group, below is a table of comparative indicators, in the monetary unit thousands of Euros and which do not reflect more than everything mentioned above:

|                                 |         |         | m€        |  |
|---------------------------------|---------|---------|-----------|--|
|                                 | Jun'21  | Jun'22  | Variation |  |
| Turnover                        | 185.756 | 231.911 | 24,8%     |  |
| Gross Profit                    | 46.236  | 58.541  | 26,6%     |  |
| % (f) Sales                     | 24,9%   | 25,2%   | 0,4%      |  |
|                                 | 21.004  | 23.405  | 11,4%     |  |
| External Supplies and Services  |         |         |           |  |
| % (f) Sales                     | 11,3%   | 10,1%   | -1,2%     |  |
| Payroll Expenses                | 19.642  | 21.902  | 11,5%     |  |
| % (f) Sales                     | 10,6%   | 9,4%    | -1,1%     |  |
| EBITDA                          | 18.861  | 23.281  | 23,4%     |  |
| % (f) Sales                     | 10,2%   | 10,0%   | 0,1%      |  |
| Operational Income              | 7.590   | 14.912  | 96,5%     |  |
| % (f) Sales                     | 4,1%    | 6,4%    | 2,3%      |  |
|                                 | -1.241  | -1.171  | -5,6%     |  |
| Financial Result<br>% (f) Sales | -0,7%   | -0,5%   | 0,2%      |  |
| Net Profit                      | 2.977   | 7.438   | 149,8%    |  |

### OTHER INFORMATION

The Company did not acquire or dispose of its own shares during the year. As of June 30,2022, the Company did not hold any own shares.

We must also inform you of the inexistence of debts to the State Public Sector and to Social Security, whose payment is in arrears.

The Company does not have any branches either in Portugal or abroad.

No business was carried out between the Company and its directors.

#### DECLARATION

We declare, under the terms and for the purposes set out in subparagraph c) of paragraph 1 of article 246 of the Securities Code that, to the best of our knowledge, the consolidated financial statements of Toyota Caetano Portugal, for the first half of 2022, have been prepared in accordance with the applicable accounting standards, giving a true and fair view of the assets and liabilities, the financial situation and the results of the issuer and the companies included in its consolidation perimeter and that the interim management report faithfully presents the information required pursuant to number 2 of article 246 of the CVM.

#### SUBSEQUENT EVENTS AND MAIN RISKS AND UNCERTAINTIES FOR THE SECOND HALF OF 2022

Besides the impacts on the macroeconomic context, with all the uncertainties that result from this for the activity of the companies that belong to the Toyota Group, from the end of the semester under review until the present date, there were no relevant facts that should be mentioned here.

Toyota Caetano Portugal, SA has been following closely the events related to the situation in Ukraine, expressing total solidarity with its people.

Certain of the power of organizations to contribute to a fair society with equal opportunities for all and bearing in mind that concern for People is one of the Values that guides our activity, from the very beginning we expressed our full availability in the integration of Ukrainians refugees in the labour market, through professional opportunities in our companies. At the same time, we are analysing the possibility of training these citizens, taking advantage of the network of training centers that we have at national level.

The current context of war, in a (post)pandemic scenario, has brought greater volatility in financial markets with already visible impacts in terms of the increase in reference interest rates.

The constraints in supply chains, the high prices of energy and commodities in general, accompanied by a strong labour market contributed to the increase in inflation.

This situation represents the continuation of a challenging context that has already been felt in previous periods and that will continue for the second half of 2022.

In the particular case of the African market, namely in Cape Verde, it is important to highlight that the local economy is weakened due to the dry period in the country and the increase in fuel prices (an increase of around 80% compared to December 2021). The ICE tax (Imposto Consumo Especial - Special Consumption Tax) reduced the demand for new vehicles; additionally, the drop in production and the respective delivery of Hilux and Corolla Cross vehicles at the Toyota South Africa Plant contributed negatively to an already fragile scenario.

#### MAIN IMPACTS ON THE ACTIVITY OF THE TOYOTA CAETANO PORTUGAL GROUP

The activity of the Toyota Caetano Portugal Group is impacted by all these recent developments, not only due to their direct implications, but also due to the international situation.

The complex ramifications associated with the invasion of Ukraine make current predictions difficult. Everything will depend on the scale and duration of this conflict. Below, we summarize the main concerns and point out the main risks that generally remain in relation to what was exposed at the beginning of the year, when presenting the annual accounts:

Dependence on energy prices

Russia's unprovoked and unjustified military aggression against Ukraine has drastically disrupted the world's energy system, causing difficulties due to high energy prices and heightening energy security concerns; also highlighting the significant dependence of the EU on gas, oil and coal imports from Russia.

In May, the European Commission presented the "REPowerEU" plan in response to these difficulties. The urgency of transforming Europe's energy system has two main objectives: on one hand, ending dependence on Russian fossil fuels and, on the other hand, tackling the climate crisis.

The measures foreseen in this plan aim to achieve the recommended objectives through (i) energy savings; (ii) diversifying energy supply, (iii) accelerated deployment of renewable energies to replace fossil fuels and (iv) intelligently combining investments and reforms.

This concern with the rising cost of energy materials has already led to the adoption of concrete measures by some EU countries: limiting the use of air conditioning, promotion of the use of remote work, energy efficiency in lighting, motive power and other energy uses, installation of photovoltaic solar panels in public buildings, provision of more parking spaces for bicycles to promote the use of this means of transport, etc.

At the companies' level, this turmoil in the price of energy materials in the fossil fuel segment naturally has an impact on their activity; not only in terms of increased expenses, but also in terms of the impact on consumers of the products and services provided by the companies of this Group. It is therefore imperative that the Group react to this context.

In 2021, contracts were signed for the supply of electricity at fixed prices until 2031, with no significant price fluctuations expected. These fluctuations, if any, will only be carried out via the regulated components.

In 2022, the contracts for the supply of natural gas were renegotiated, resulting in an expected increase in the price to be paid, but with the advantage of fixing the same until mid-2025.

At the same time, severe cost control measures are being implemented with the aim of reducing general company expenses.

In 2022, investments are planned for rationalization and energy efficiency with immediate and consistent impacts in the near future:

- Intelligent and efficient lighting systems;
- Replacement of current motive power equipment by others of greater efficiency;
- Monitoring and control of consumption;
- Photovoltaic systems for the production of electrical energy intended essentially for self-consumption.
- Increase in the price of raw materials

Regarding the acquisition of raw materials, there has been a general increase in prices.

To face this challenge:

- Negotiation efforts continue with suppliers to reduce prices through greater visibility of quantities to be purchased and respective delivery timings (rolling forecast and binding forecast);
- In certain circumstances, the anticipation of placing orders is used in order to fix the current prices, with negotiation of extended delivery and payment deadlines;
- Procurement of alternative suppliers and in different geographies;
- Whenever possible, development of alternative solutions with materials less affected by the price increase;
- Orientation of the commercial policy towards products and services of greater profitability and very attentive and controlled management of the sales discounts to be granted.

Logistics and supply chains

As is well known and as has been mentioned, the automotive sector has been operating under supply, production and sales restrictions, resulting from the lack of semiconductors combined with the pandemic crisis and war in Ukraine. This context naturally leads to an increase in costs throughout the transport chain, which will implicitly increase the costs of vehicles and parts for the after-sales market.

On the logistics side, imbalances in flows, circulation difficulties, lower availability of containers and ships and lack of manpower in key areas were the major logistical challenges of 2021; however, the race to develop technological solutions capable of facing this "new reality", the capacity and speed of adaptation through the massification of new forms of communication and management at a distance, were reactions with positive (albeit tenuous) impacts on the first half of 2022.

#### Consumer/Market Behaviour

The successive increases in fuel costs will naturally have short-term effects on consumer habits, who will, on average, use their car less, reducing the km's per vehicle, which negatively impacts the daily activity of the Concessions.

Also noteworthy as a result of global production constraints during the pandemic period and exacerbated by the armed conflict in Ukraine, the year 2022 is being marked by a growing inflationary trend, with particular emphasis on energy and raw materials costs. There is a strong expectation that this inflationary tension will remain throughout 2022.

#### People & Talent

The current job market is characterized by being highly competitive and with increasing levels of talent shortage; in fact, in 2022, this is the main challenge on the job market.

At the base of this situation are trends from the pre-pandemic period such as (i) the increasing automation of functions and digitization, (ii) the primacy of higher education in place of intermediate/professional courses and (iii) the mismatch between educational and the real needs of the labour market. The pandemic, with the impact it had on the health of the population in general, due to the increased difficulties in the mobility of people and new ways of working, has exacerbated this trend.

The shortage of talent directly influences the ability of companies to successfully achieve the objectives and strategy foreseen for their activity.

In order to respond to these new trends in the area of People Management, Toyota Caetano Portugal has implemented measures to retrain its teams, providing them with adequate knowledge for the new challenges being posed by the automotive sector (electrification, digitalization, Business Intelligence, e-commerce, among others). In addition, it has invested in an employer branding strategy to affirm Toyota Caetano Portugal, progressively, as a reference employer, increasingly able to have in its Employees the true ambassadors of its Brand with its Customers.

Vila Nova de Gaia, 28 September 2022

Board of Directors:

José Reis da Silva Ramos – Chairman

Maria Angelina Martins Caetano Ramos

Miguel Pedro Caetano Ramos

Gisela Maria Falcão Sousa Pires Passos

Tom Fux

Kazunori Takagi

# INFORMATION ON THE PARTICIPATION OF THE MANAGEMENT AND SUPERVISORY BODIES OF TOYOTA CAETANO PORTUGAL, S.A.

(According to article 447 of the Commercial Companies Code and in accordance with subparagraph c) of article 9 and number 4 of article 14, both of CMVM Regulation 5/2008)

In compliance with the article 447 of the Commercial Companies Code, it is hereby declared that, during the first half of 2022, the members of the Company's management and supervisory bodies did not hold any shares or obligations of the Company.

It is also declared that the members of the Company's management and supervisory bodies did not carry out during the first half of 2022 any acquisitions, encumbrances or terminations of ownership that have as their object shares or bonds of the Company.

The company's securities held by companies in which the members of the management and supervisory bodies hold positions on the governing bodies are further stated below:

- Shareholder Salvador Caetano Auto, SGPS, S.A. (of which Maria Angelina Martins Caetano Ramos is Chairman of the Board of Directors, and Miguel Pedro Caetano Ramos is a Member of the Board of Directors), Acquired: 15 February 2022, 854 shares at the price of €3,20 each; on February 28, 2022, 135 shares at a price of €3,00 each; therefore, as of June 30, 2022, it held 24.429.144 shares with a nominal value of 1 euro each.;
- Shareholder COVIM Sociedade Agrícola, Silvícola e Imobiliária, S.A. had no movements (of which Maria Angelina Martins Caetano Ramos is Chairman of the Board of Directors, José Reis da Silva Ramos is the spouse of the Chairman of the Board of Directors), so as of June 30, 2022 it held 393.252 shares, with a par value of 1 euro each.

For the purpose provided for in the final part of number 1 of article 447 of the Commercial Companies Code (companies in a controlling or group relationship with the company), it is hereby declared that:

- José Reis da Silva Ramos, Chairman of the Board of Directors, owns 39,49%<sup>6</sup> of the share capital of Grupo Salvador Caetano, SGPS, S.A., a company in a controlling relationship with the Company;
- Maria Angelina Martins Caetano Ramos, Member of the Board of Directors, owns 39,49%<sup>7</sup> of the share capital of Grupo Salvador Caetano, SGPS, S.A., a company in a controlling relationship with the Company;
- Miguel Pedro Caetano Ramos, Member of the Board of Directors, owns 0,00223% of the share capital of Grupo Salvador Caetano, SGPS, S.A., a company in a controlling relationship with the Company.

<sup>6</sup> This percentage includes shares held by the spouse.

<sup>7</sup> This percentage includes shares held by the spouse.

# QUALIFIED HOLDINGS

(According to CMVM Regulation 5/2008)

As of June 30, 2022, the shareholders with qualifying holdings in the Company's capital are as follows:

| SHAREHOLDER                                                                                                           | Shares     | % of voting rights |  |
|-----------------------------------------------------------------------------------------------------------------------|------------|--------------------|--|
| _____________________________________________________________________________<br>Salvador Caetano - Auto - SGPS, S.A. | 24.429.144 | 69,797             |  |
| Toyota Motor Europe NV/SA                                                                                             | 9.450.000  | 27,000             |  |

### FORM

Adjusted EBITDA: EBITDA + Results relating to Investments accounted for using the Equity Method

Dividend per Share: Dividends Distributed / Share Capital

EBITDA: Operating Results + Amortization and Depreciation + Impairments Inventories/Debts receivable + Provisions and Other Impairments

Employees: average number of employees

Financial Autonomy: Total Equity / Total Assets

Gross Profit: Turnover + Production Variation - Cost of Sales

- Net Debt: Financing Obtained Cash and Equivalents
- Turnover: Sales + Services Rendered

Units Sold: Vehicles invoiced by TCAP to dealerships + Forklifts + LC70 Vehicles

# CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2022 AND 31 DECEMBER 2021

(Amounts expressed in Euros)

| ASSETS                                                 | NOTES | 30/06/2022  | 31/12/2021  |
|--------------------------------------------------------|-------|-------------|-------------|
| NON-CURRENT ASSETS:                                    |       |             |             |
| Goodwill                                               | 8     | 611.997     | 611.997     |
| Intangible assets                                      | 9     | 1.161.837   | 994.965     |
| Tangible fixed assets                                  | 5     | 112.996.258 | 101.371.198 |
| Investment properties                                  | 6     | 9.744.407   | 10.076.343  |
| Financial investments in associates and joint ventures | 10    | 46.686.124  | 43.994.621  |
| Other investments                                      | 11    | 4.779.622   | 4.606.025   |
| Deferred tax assets                                    | 16    | 3.730.687   | 3.528.735   |
| Accounts receivable                                    | 13    | 646.625     | 766.236     |
| Total Non-current Assets                               |       | 180.357.557 | 165.950.120 |
|                                                        |       |             |             |

| CURRENT ASSETS:                                                 |    |             |             |
|-----------------------------------------------------------------|----|-------------|-------------|
| Inventory                                                       | 12 | 83.907.897  | 86.801.921  |
| Accounts receivable                                             | 13 | 56.674.658  | 53.704.915  |
| Other debtors                                                   | 14 | 1.322.342   | 1.028.878   |
| Other current assets                                            | 15 | 2.893.115   | 4.130.654   |
| Cash and cash equivalents                                       | 4  | 15.063.989  | 22.122.760  |
| Total current assets excluding non-current assets held for sale |    | 159.862.001 | 167.789.128 |
| Non-current assets held for sale                                | 7  | 2.175.221   | 3.175.221   |
| Total Current Assets                                            |    | 162.037.222 | 170.964.349 |
|                                                                 |    |             |             |
| Total Assets                                                    |    | 342.394.779 | 336.914.469 |

# CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2022 AND 31 DECEMBER 2021

(Amounts expressed in Euros)

| EQUITY AND LIABILITIES                 |              | NOTES | 30/06/2022  | 31/12/2021  |
|----------------------------------------|--------------|-------|-------------|-------------|
| EQUITY:                                |              |       |             |             |
| Share capital                          |              |       | 35.000.000  | 35.000.000  |
| Legal reserves                         |              |       | 7.498.903   | 7.498.903   |
| Fair value reserves                    |              |       | 1.588.421   | 1.460.711   |
| Other reserves and retained earnings   |              |       | 97.638.460  | 92.948.220  |
| Consolidated net income for the period |              |       | 7.347.159   | 11.695.005  |
|                                        |              | 17    | 149.072.943 | 148.602.839 |
| Non-controlling interests              |              | 18    | 1.411.465   | 1.329.406   |
|                                        | Total Equity |       | 150.484.408 | 149.932.245 |

| LIABILITIES:                               |    |            |            |
|--------------------------------------------|----|------------|------------|
| NON-CURRENT LIABILITIES:                   |    |            |            |
| Loans                                      | 19 | 24.174.819 | 25.375.771 |
| Responsibilities for defined benefit plans | 24 | 7.105.288  | 7.105.288  |
| Provisions                                 | 25 | 1.900.719  | 1.918.478  |
| Other creditors                            | 21 | 4.760.680  | 2.275.204  |
| Deferred tax liabilities                   | 16 | 1.911.197  | 1.873.647  |
| Total Non-current Liabilities              |    | 39.852.703 | 38.548.388 |

| CURRENT LIABILITIES:         |    |             |             |
|------------------------------|----|-------------|-------------|
| Loans                        | 19 | 21.137.571  | 22.280.235  |
| Accounts payable             | 20 | 34.267.096  | 43.622.927  |
| Other creditors              | 21 | 66.296.068  | 54.687.631  |
| Income tax payable           | 22 | 2.842.396   | 4.307.955   |
| Other current liabilities    | 23 | 27.514.537  | 23.535.088  |
| Total Current Liabilities    |    | 152.057.668 | 148.433.836 |
|                              |    |             |             |
| Total Liabilities            |    | 191.910.371 | 186.982.224 |
|                              |    |             |             |
| Total Equity and Liabilities |    | 342.394.779 | 336.914.469 |

The accompanying notes form an integral part of this statement as of June 30, 2022.

Certified Accountant: Alexandra Maria Pacheco Gama Junqueira

# CONSOLIDATED INCOME STATEMENT BY NATURE FOR THE SIX-MONTH PERIODS ENDED ON 30 JUNE 2022 AND 2021

(Amounts expressed in Euros)

|                                                                 | Notes    | 30/06/2022    | 30/06/2021    |
|-----------------------------------------------------------------|----------|---------------|---------------|
| Operating income:                                               |          |               |               |
| Revenue                                                         | 27       | 210.900.873   | 165.785.310   |
| Services rendered                                               | 27       | 21.009.797    | 19.970.462    |
| Other operating income                                          | 30       | 11.511.510    | 14.826.694    |
| Production variation                                            | 12       | 9.830.524     | (214.953)     |
| Total operating income                                          |          | 253.252.704   | 200.367.513   |
| Operating expenses:                                             |          |               |               |
| Cost of sales                                                   | 12       | (183.200.096) | (139.304.342) |
| External supplies and services                                  | 28       | (23.405.235)  | (21.004.491)  |
| Payroll expenses                                                | 29       | (21.901.890)  | (19.642.225)  |
| Amortizations and depreciations                                 | 5, 6 e 9 | (7.221.604)   | (9.743.452)   |
| Inventory impairment                                            | 25       | (1.006.384)   | (1.036.075)   |
| Impairment of debts receivable                                  | 25       | (74.196)      | (595.291)     |
| Provisions and impairment losses                                | 25       | (66.424)      | 103.185       |
| Other operating expenses                                        | 30       | (1.464.469)   | (1.555.095)   |
| Total operating expenses                                        |          | (238.340.298) | (192.777.786) |
| Operating results                                               |          | 14.912.406    | 7.589.727     |
| Results related to investments in associates and joint ventures | 10       | (3.276.181)   | (1.862.612)   |
| Financial expenses and losses                                   | 31       | (1.265.739)   | (1.247.279)   |
| Financial income and gains                                      | 31       | 94.564        | 6.297         |
| Income before tax                                               |          | 10.465.050    | 4.486.133     |
| Income tax of the period                                        | 26       | (3.027.013)   | (1.509.050)   |
| Consolidated net income for the period                          |          | 7.438.037     | 2.977.083     |
| Attributable consolidated net income:                           |          |               |               |
| Group                                                           |          | 7.347.159     | 2.985.318     |
| Non-controlling interests                                       | 18       | 90.879        | (8.235)       |
|                                                                 |          | 7.438.038     | 2.977.083     |
| Basic                                                           | 36       | 0,213         | 0,085         |
| Diluted                                                         | 36       | 0,213         | 0,085         |

The accompanying notes form an integral part of this statement for the six-month period ended on June 30, 2022.

Certified Accountant: Alexandra Maria Pacheco Gama Junqueira

# CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY FOR THE SIX-MONTH PERIOD ENDED ON 30 JUNE 2022 AND THE YEAR ENDED ON 31 DECEMBER 2021

(Amounts expressed in Euros)

|                                                  | Notes | Share Capital | Legal<br>reserves | Fair value<br>reserves | Other reserves<br>and retained<br>earnings | Total reserves<br>and retained<br>earnings | Consolidated<br>net income for<br>the period | Subtotal     | Non<br>controlling<br>interests | Total Equity |
|--------------------------------------------------|-------|---------------|-------------------|------------------------|--------------------------------------------|--------------------------------------------|----------------------------------------------|--------------|---------------------------------|--------------|
| Balance on January 1, 2021                       |       | 35.000.000    | 7.498.903         | 1.178.658              | 97.382.982                                 | 98.561.640                                 | 4.644.726                                    | 145.705.269  | 1.284.674                       | 146.989.943  |
| Application of the 2020 consolidated net income  |       | -             | -                 | -                      | 4.644.726                                  | 4.644.726                                  | (4.644.726)                                  | -            | -                               | -            |
| Consolidated comprehensive income for the period |       | -             | -                 | 282.053                | 1.420.512                                  | 1.702.565                                  | 11.695.005                                   | 13.397.570   | 137.040                         | 13.534.610   |
| Acquisition from non-controlling interests       |       | -             | -                 | -                      | -                                          | -                                          | -                                            | -            | (92.308)                        | (92.308)     |
| Dividend distribution                            | 17    | -             | -                 | -                      | (10.500.000)                               | (10.500.000)                               | -                                            | (10.500.000) | -                               | (10.500.000) |
| Balance on December 31, 2021                     |       | 35.000.000    | 7.498.903         | 1.460.711              | 92.948.220                                 | 94.408.931                                 | 11.695.005                                   | 148.602.839  | 1.329.406                       | 149.932.245  |
|                                                  |       |               |                   |                        |                                            |                                            |                                              |              |                                 |              |
| Balance on January 1, 2022                       |       | 35.000.000    | 7.498.903         | 1.460.711              | 92.948.220                                 | 94.408.931                                 | 11.695.005                                   | 148.602.839  | 1.329.406                       | 149.932.245  |
| Application of the 2021 consolidated net income  |       | -             | -                 | -                      | 11.695.005                                 | 11.695.005                                 | (11.695.005)                                 | -            | -                               | -            |
| Consolidated comprehensive income for the period |       | -             | -                 | 127.710                | (4.764)                                    | 122.945                                    | 7.347.159                                    | 7.470.104    | 82.059                          | 7.552.163    |
| Dividend distribution                            | 17    | -             | -                 | -                      | (7.000.000)                                | (7.000.000)                                | -                                            | (7.000.000)  | -                               | (7.000.000)  |
| Balance on June 30, 2022                         |       | 35.000.000    | 7.498.903         | 1.588.421              | 97.638.460                                 | 99.226.881                                 | 7.347.159                                    | 149.072.943  | 1.411.465                       | 150.484.408  |

The accompanying notes form an integral part of this statement for the six-month period ended on June 30, 2022.

Certified Accountant: Alexandra Maria Pacheco Gama Junqueira

52

# CONSOLIDATED STATEMENT OF THE COMPREHENSIVE INCOME FOR THE SIX-MONTH PERIODS ENDED ON 30 JUNE 2022 AND 2021

(Amounts expressed in Euros)

|                                                                                                                                               | 30/06/2022 | 30/06/2021 |
|-----------------------------------------------------------------------------------------------------------------------------------------------|------------|------------|
| Consolidated Net Income of the period                                                                                                         | 7.438.038  | 2.977.083  |
| Components of other consolidated comprehensive income for the period that may be subsequently reclassified to<br>the income statement:        |            |            |
| Equity Method - Associates and Joint Ventures (Note 10)                                                                                       | (225.864)  | 198.469    |
| Components of other consolidated comprehensive income for the period, which will not subsequently be<br>reclassified to the income statement: |            |            |
| Change in fair value of equity instruments at fair value through equity - gross value (Note 11)                                               | 166.887    | 149.356    |
| Change in fair value of equity instruments at fair value through equity - tax effect (Note 11)                                                | (37.550)   | -          |
| Others – gross value                                                                                                                          | 210.652    | 638.983    |
| Consolidated comprehensive income of the period                                                                                               | 7.552.163  | 3.963.891  |
| Attributable to:                                                                                                                              |            |            |
| Shareholders of the parent company                                                                                                            | 7.470.104  | 3.962.566  |
| Non-controlling interests                                                                                                                     | 82.059     | 1.325      |

The accompanying notes form an integral part of this statement for the six-month period ended on June 30, 2022.

Certified Accountant: Alexandra Maria Pacheco Gama Junqueira

# CONSOLIDATED CASH FLOWS STATEMENT FOR THE SIX-MONTH PERIOD ENDED ON 30 JUNE 2022 AND THE YEAR ENDED ON 31 DECEMBER 2021

|                                                                   |               | (Amounts expressed in Euros) |
|-------------------------------------------------------------------|---------------|------------------------------|
|                                                                   | 30/06/2022    | 31/12/2021                   |
| OPERATING ACTIVITIES:                                             |               |                              |
| Collections from customers                                        | 334.774.144   | 555.201.533                  |
| Payments to suppliers                                             | (249.997.763) | (411.436.697)                |
| Payments to personnel                                             | (17.979.513)  | (35.756.427)                 |
| Operating Flow                                                    | 66.796.868    | 108.008.409                  |
| Income tax payments                                               | (3.171.444)   | 105.195                      |
| Other collections/payments related to operational activity        | (51.870.342)  | (76.862.168)                 |
| Cash Flow from Operating Activities                               | 11.755.082    | 31.251.436                   |
| INVESTING ACTIVITIES:                                             |               |                              |
| Collections from:                                                 |               |                              |
| Financial investments                                             | -             | 430                          |
| Investment properties (Note 6)                                    | 609.000       | 79.300                       |
| Non-current assets held for sale                                  | 885.000       | -                            |
| Tangible fixed assets                                             | 30.014        | 1.195.884                    |
| Interest and similar income                                       | 5.235         | 9.034                        |
|                                                                   | 1.529.249     | 1.284.648                    |
| Payments related to:                                              |               |                              |
| Financial investments (Note 10)                                   | (6.193.549)   | (9.383.060)                  |
| Tangible fixed assets                                             | (2.180.296)   | (2.024.135)                  |
| Intangible assets                                                 | (215.663)     | (458.332)                    |
|                                                                   | (8.589.508)   | (11.865.527)                 |
| Cash Flow from Investing Activities                               | (7.060.259)   | (10.580.879)                 |
| FINANCING ACTIVITIES:                                             |               |                              |
| Collections from:                                                 |               |                              |
| Loans (Note 19)                                                   | 51.500.000    | 198.500.000                  |
| Lease liabilities (Note 19)                                       | -             | 4.968.473                    |
|                                                                   | 51.500.000    | 203.468.473                  |
| Payments related to:                                              |               |                              |
| Loans (Note 19)                                                   | (51.566.631)  | (193.582.230)                |
| Rent from lease liabilities (Note 19)                             | (3.601.566)   | (7.490.088)                  |
| Interest and similar costs                                        | (991.798)     | (1.594.857)                  |
| Other creditors                                                   | (95.706)      | (300.114)                    |
| Dividends (Note 17)                                               | (6.997.893)   | (10.486.528)                 |
|                                                                   | (63.253.594)  | (213.453.817)                |
| Cash Flow from Financing Activities                               | (11.753.594)  | (9.985.344)                  |
| CASH AND CASH EQUIVALENTS                                         |               |                              |
| Cash and Cash Equivalents at the beginning of the period (Note 4) | 22.122.760    | 11.437.547                   |
| Cash and Cash Equivalents at the end of the period (Note 4)       | 15.063.989    | 22.122.760                   |
|                                                                   |               |                              |

The accompanying notes form an integral part of this statement for the six-month period ended on June 30, 2022.

Certified Accountant: Alexandra Maria Pacheco Gama Junqueira

# NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

#### ON 30 JUNE 2022

(Amounts expressed in Euros)

### 1. INTRODUCTION

Toyota Caetano Portugal, S.A. ("Toyota Caetano" or "Company") is a public limited company incorporated in 1946, which has its registered office in Vila Nova de Gaia and is the parent company of a Group ("Toyota Caetano Group" or "Group"), whose companies mainly carry out economic activities in the automotive sector, namely the import, assembly and sale of light and heavy vehicles as well as the import and sale of industrial equipment for cargo handling and respective after-sales assistance, the creation and operation of training and development of human resources, as well as the management of own properties, including their rental, and also the rental of short or long-term vehicles, with or without a driver.

Toyota Caetano Portugal, S.A. belongs to Salvador Caetano Auto Group (Group led by the company Grupo Salvador Caetano, S.G.P.S., S.A.), being directly owned by the company Salvador Caetano Auto - S.G.P.S., S.A., since the end of 2016.

Toyota Caetano is the importer and distributor of the Toyota (vehicles and forklifts), Lexus (vehicles) and BT (forklifts) brands for Portugal, heading a Group ("Toyota Caetano Group") that presents itself as follows on June 30, 2022:

| Companies                                                                                    | Headquarters       | Classification |
|----------------------------------------------------------------------------------------------|--------------------|----------------|
| Based in Portugal:                                                                           |                    |                |
| Toyota Caetano Portugal, S.A. ("Parent company")                                             | Vila Nova de Gaia  | Parent company |
| Caetano - Auto, S.A. ("Caetano Auto")                                                        | Vila Nova de Gaia  | Subsidiary     |
| Caetano Renting, S.A. ("Caetano Renting")                                                    | Vila Nova de Gaia  | Subsidiary     |
| Destaque Mourisco - Sociedade Imobiliária, Lda. ("Destaque Mourisco")                        | Faro               | Subsidiary     |
| Caetanobus - Fabricação de Carroçarias, S.A. ("CaetanoBus")                                  | Vila Nova de Gaia  | Joint venture  |
| Kinto Portugal, S.A. ("Kinto")                                                               | Vila Nova de Gaia  | Associate      |
| Salvador Caetano Seguros - Mediação de Seguros, Unipessoal Lda. ("Salvador Caetano Seguros") | Vila Nova de Gaia  | Subsidiary     |
|                                                                                              |                    |                |
| Based in other countries:                                                                    |                    |                |
| Caetano Auto CV, S.A. ("Caetano Auto CV")                                                    | Praia (Cape Verde) | Subsidiary     |
| Caetano UK Limited ("Caetano UK")                                                            | United Kingdom     | Joint venture  |
| Cobus Industries GMBH ("Cobus")                                                              | Germany            | Joint venture  |
| Caetano Renting Senegal, S.A. ("Caetano Renting Senegal")                                    | Dakar (Senegal)    | Associate      |

During the six-month period ended on 30 June, 2022, the company Salvador Caetano Seguros was incorporated, being directly owned by Caetano-Auto, S.A. at 100%. The activity of this subsidiary was residual during the semester ended 30 June 2022.

The Group also holds financial interests in a joint venture and in an associate which are detailed in Note 10.

Toyota Caetano shares have been listed on Euronext Lisbon since October 1987.

The attached consolidated financial statements are presented in Euros (rounded to the nearest unit), as this is the currency used preferably in the economic environment in which the Group operates. Foreign operations are included in the consolidated financial statements as referred to in point 2.5.

# 2. BASIS OF PRESENTATION AND MAIN ACCOUNTING POLICIES

The basis of presentation and main accounting policies adopted in the preparation of the attached consolidated financial statements are as follows:

# 2.1 BASIS OF PRESENTATION

The interim financial statements are presented semi-annually in accordance with IAS 34 – "Interim Financial Reporting".

These interim financial statements, prepared in accordance with the aforementioned regulations, do not include all the information to be included in the annual consolidated financial statements, so they should be read together with the consolidated financial statements for the year ended December 31, 2021.

The comparative information referring to December 31, 2021, presented in the attached consolidated financial statements, was subject to an audit.

The attached consolidated financial statements were prepared on the assumption of continuity of operations and based on the principle of historical cost and, in the case of some financial instruments, of fair value, based on the accounting books and records of the companies included in the consolidation (Note 3).

# 2.2 ADOPTION OF NEW OR REVISED IAS/IFRS

#### New standards and amendments to the standards that became effective on January 1, 2022

Up to the date of approval of these consolidated financial statements, the following accounting standards and amendments to the standards were approved (endorsed) by the European Union, with mandatory application to the years beginning on 1 January 2022:

| Description                                                 | Changes                                                                                                                                                                             | Effective date  |
|-------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|
|  IAS 16 – Proceeds before intended use                     | Prohibition of deducting the proceeds obtained from<br>the sale of items produced during the testing phase,<br>to the acquisition cost of property, plant and<br>equipment          | January 1, 2022 |
|  IAS 37 – Onerous contract – cost of fulfilling a contract | Clarification about the nature of the expenses to be<br>considered in determining whether a particular<br>contract has become onerous                                               | January 1, 2022 |
|  IFRS 3 – Reference to the Conceptual framework            | Update to references to the Conceptual Framework<br>and clarification on the registration of provisions and<br>contingent liabilities within the scope of a business<br>combination | January 1, 2022 |
|  Annual improvement 2018 – 2020                            | Specific amendments to IFRS 1, IFRS 9, IFRS 16 and<br>IAS 41                                                                                                                        | January 1, 2022 |

There were no significant effects on the Group's consolidated financial statements in the six-month period ended June 30, 2022, as a result of the adoption of the aforementioned standards and amendments.

Published (new and amended) standards whose application is mandatory for annual periods beginning on or after 1 January 2023, and which the European Union has already endorsed

Up to the date of approval of these consolidated financial statements, the following accounting standards and amendments to the standards were approved (endorsed) by the European Union, with mandatory application to the years beginning on 1 January 2023:

| Description                                                                                    | Changes                                                                                                                                                                                                                                                                                                                                                        | Effective date  |
|------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|
|  IAS 1 – Disclosure of accounting policies                                                    | Disclosure requirement for material accounting<br>policies, rather than significant accounting policies                                                                                                                                                                                                                                                        | January 1, 2023 |
|  IAS 8 – Disclosure of accounting estimates                                                   | Definition of accounting estimate. Clarification as to<br>the distinction between changes to accounting policies<br>and changes to accounting estimates                                                                                                                                                                                                        | January 1, 2023 |
|  IAS 12 – Deferred tax related to assets and liabilities<br>arising from a single transaction | Requirement to recognize deferred tax on the<br>recognition of assets under right of use / lease liability<br>and provisions for decommissioning / related asset,<br>when their initial recognition gives rise to equal<br>amounts of taxable temporary differences and<br>deductible temporary differences, because of not<br>being relevant for tax purposes | January 1, 2023 |
|  IFRS 17 – Insurance contracts                                                                | New accounting for insurance contracts, reinsurance<br>contracts and investment contracts with discretionary<br>participating features                                                                                                                                                                                                                         | January 1, 2023 |
|  IFRS 17 – Insurance contracts (amendments)                                                   | The amendments to IFRS 17 relate to changes in areas<br>such as: i) scope; ii) level of aggregation of insurance<br>contracts; iii) recognition; iv) measurement; v)<br>modification and derecognition; vi) presentation of the<br>Statement of Financial Position; vii) recognition and<br>measurement of the Income statement; and viii)<br>disclosures      | January 1, 2023 |

Regarding these standards (new and amendments), it is not estimated that their future adoption will have significant impacts on the attached consolidated financial statements.

# Standards (new and amended) that become effective, on or after 1 January 2023, not yet endorsed by the European Union

The following accounting standards were issued by the IASB with mandatory application in future financial years and, up to the date of approval of these consolidated financial statements, they have not yet been approved (endorsed) by the European Union:

| Classification of a liability as current or non-current,<br>depending on an entity's right to defer its payment.<br>New definition of "settlement" of a liability                                                                                                                                                                                                                | January 1, 2023 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|
| This amendment allows to avoid temporary accounting<br>mismatches between financial assets and insurance<br>contract liabilities in the comparative information<br>presented, when first applying IFRS 17. This<br>amendment allows the application of a classification<br>overlay to a financial asset for which the entity does<br>not restate IFRS 9 comparative information. | January 1, 2023 |
|                                                                                                                                                                                                                                                                                                                                                                                  |                 |

These standards have not yet been adopted (endorsed) by the European Union and, as such, were not applied by the Group in the six-month period ended June 30, 2022.

Regarding these standards and interpretations, issued by the IASB but not yet approved (endorsed) by the European Union, it is not estimated that their future adoption will have significant impacts on the attached consolidated financial statements.

# 2.3 CONSOLIDATION PRINCIPLES AND MAIN VALORIMETRIC CRITERIA

These consolidated financial statements were prepared in accordance with the accounting policies disclosed in the Notes to the consolidated financial statements as of December 31, 2021.

# 2.4 RISK MANAGEMENT POLICY

At Grupo Toyota Caetano Portugal, S.A., the control of risks inherent to the activity is carried out directly by the Board of Directors and evaluated annually by the Fiscal Board.

The Toyota Caetano Portugal Group is also supported by internal departments of the Salvador Caetano Group, with which it maintains synergies, such as the Legal Department and Compliance/Planning Department, Management Control and Internal Audit / Taxation / IT Services and the Audit carried out by the External Auditors. Whenever appropriate, relevant reports are shared with the Fiscal Board.

The risk policy is prepared by the Board of Directors, evaluated by the Fiscal Board and, finally, approved by the Board of Directors.

In carrying out its activities, the Toyota Caetano Portugal S.A. Group is subject, in each of its business areas or subsidiaries, to a multitude of risks, which have been identified with the aim of mitigating and controlling them.

In this context, risk indicators considered particularly relevant as at 30 June 2022 are presented below:

(i) Financial Risks

The Group's risk management is essentially controlled by the financial department of Toyota Caetano Portugal, S.A. in accordance with policies approved by the Group's Board of Directors. In this sense, the Board of Directors has defined global risk management principles as well as specific policies for certain areas, such as exchange rate risk, price risk, interest rate risk, liquidity risk, capital risk and credit risk.

a) Exchange rate risk

In the development of its activity, the Group operates internationally and has a subsidiary operating in Cape Verde and, since December 2020, a joint venture operating in the United Kingdom (the subsidiary of the Caetano Bus Group, the Caetano UK entity) and an associate operating in Senegal (an affiliate of the Kinto Group, Caetano Renting Senegal). By Group policy, a functional currency is defined for each subsidiary (Cape Verde Escudo, in relation to the subsidiary Caetano Auto Cabo Verde, Pound Sterling, in relation to the subsidiary of Caetano Bus based in the United Kingdom and the Senegalese Franc, in relation to the associate of the Kinto Group headquartered in Senegal), corresponding to the currency of its main economic environment and the one that best represents the composition of its cash flows. Exchange rate risk thus essentially results from commercial transactions, arising from the purchase and sale of products and services in a currency different from the functional currency of each business.

The Group's exchange rate risk management policy is aimed at assessing the opportunity to hedge this risk on a case-bycase basis, particularly taking into account the specific circumstances of the currencies and countries in question.

The exchange rate risk associated with the conversion of financial statements of foreign entities, also known as accounting risk, reflects the potential for changes in the parent company's equity due to the need to convert the financial statements of subsidiaries abroad.

As mentioned in Note 2.5, the assets and liabilities of foreign entities are converted into Euros using the exchange rates prevailing at the date of the consolidated statement of financial position and the expenses and gains of these entities are converted into Euros using the average exchange rate for the period. The resulting exchange difference is recorded in equity under the heading "Other reserves and retained earnings".

The main amounts of assets and liabilities (in Euros) of the Group recorded in a currency other than the Euro, can be summarized as follows:

|                         |                                        | Assets    |           | Liabilities |            |            |
|-------------------------|----------------------------------------|-----------|-----------|-------------|------------|------------|
|                         | 30/06/2022<br>31/12/2021<br>30/06/2021 |           |           | 30/06/2022  | 31/12/2021 | 30/06/2021 |
| Cape Verde Escudo (CVE) | 7.974.877                              | 8.087.466 | 7.455.174 | 3.804.832   | 4.139.952  | 3.884.174  |
| Japanese Yen (JPY)      | -                                      | 137.899   | 976.838   | 1.105.665   | 1.546.703  | 1.532.038  |

The Group's sensitivity to exchange rate variations can be summarized as follows (disclosure only for relevant situations):

|                    |           |          | 30/06/2022 |          | 31/12/2021 |
|--------------------|-----------|----------|------------|----------|------------|
|                    | Variation | Results  | Equity     | Results  | Equity     |
| Japanese Yen (JPY) | 5%        | (55.283) | -          | (77.335) | -          |

Regarding the sensitivity of changes in the Cape Verde Escudo (CVE) exchange rate, given that the defined exchange rate does not change (fixed exchange rate against the Euro), the Group has no associated exchange rate risk.

#### b) Price risk

The Toyota Group is exposed to changes in the prices of raw materials used in its production processes, namely automotive components. However, taking into account that the acquisition of raw materials is not in accordance with a price quoted on the stock exchange or formed in volatile markets, this price risk is not significant.

Additionally, the Toyota Caetano Group, during the years 2022 and 2021, was exposed to the risk of price changes in "Other investments". As at 30 June 2022, 31 December 2021 and 30 June 2021, that item is composed solely of Participating Units in Cimóvel - Fundo de Investimento Imobiliário Fechado.

The Group's sensitivity to price changes in the aforementioned "Equity instruments at fair value through equity" can be summarized as follows (increases/(decreases)):

|              |           | 30/06/2022 |           |         | 31/12/2021 |         | 30/06/2021 |  |
|--------------|-----------|------------|-----------|---------|------------|---------|------------|--|
|              | Variation | Results    | Equity    | Results | Equity     | Results | Equity     |  |
| FUND CIMÓVEL | 10%       | -          | 464.154   | -       | 447.466    | -       | 434.196    |  |
| FUND CIMÓVEL | -10%      | -          | (464.154) | -       | (447.466)  | -       | (434.196)  |  |

#### c) Interest rate risk

The Group's indebtedness is mainly indexed to variable interest rates, exposing the cost of debt to a high risk of volatility. The impact of this volatility on the Group's results or equity is not significant due to the effect of the following factors: (i) possible correlation between the level of market interest rates and economic growth, with this having positive effects on other lines of the results (namely operating) of the Group, in this way partially offsetting the added financial costs (natural hedge); and (ii) existence of consolidated liquidity or cash equivalents remunerated at variable rates.

The Board of Directors of the Toyota Caetano Portugal Group approves the terms and conditions of the financing, analysing the debt structure, the inherent risks and the different options available in the market, namely regarding the type of interest rate (fixed/variable) and, by permanently monitoring the conditions and alternatives existing in the market, is responsible for deciding on the occasional contracting of derivative financial instruments intended to hedge interest rate risk.

#### Interest rate risk sensitivity analysis

The interest rate risk sensitivity analysis described below was calculated based on the exposure to interest rates for financial instruments existing at the date of the consolidated statement of financial position. For floating rate liabilities, the following assumptions were considered:

- (i) Interest rate is superior in 0.25 p.p. than the supported interest rate;
- (ii) Calculation was made using the Group's debt at the end of the year;
- (iii) Spreads maintenance throughout the year.

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.

The Group's sensitivity to changes in interest rates on said financial instruments can be summarized as follows (increases/decreases):

|                              | 30/06/2022  |          | 31/12/2021 |          | 30/06/2021 |          |        |
|------------------------------|-------------|----------|------------|----------|------------|----------|--------|
|                              | Variation   | Results  | Equity     | Results  | Equity     | Results  | Equity |
| Guaranteed checking accounts | 0,25 p.p.   | 37.500   | -          | 37.500   | -          | 37.500   | -      |
| Bank overdrafts              | 0,25 p.p.   | 21       | -          | 21       | -          | 2.247    | -      |
| Long term loans              | 0,25 p.p.   | 522      | -          | 701      | -          | 878      | -      |
| Bond loans                   | 0,25 p.p.   | 31.250   | -          | 31.250   | -          | 31.250   | -      |
| Total                        |             | 69.293   | -          | 69.472   | -          | 71.874   | -      |
| Guaranteed checking accounts | (0,25 p.p.) | (37.500) | -          | (37.500) | -          | (37.500) | -      |
| Bank overdrafts              | (0,25 p.p.) | (21)     | -          | (21)     | -          | (2.247)  | -      |
| Long term loans              | (0,25 p.p.) | (522)    | -          | (701)    | -          | (878)    | -      |
| Bond loans                   | (0,25 p.p.) | (31.250) | -          | (31.250) | -          | (31.250) | -      |
| Total                        |             | (69.293) | -          | (69.472) | -          | (71.874) | -      |

#### d) Liquidity risk

Liquidity risk is defined as the risk of a lack of capacity to settle or meet obligations within defined periods and at a reasonable price.

The existence of liquidity in the Group's companies implies that operating parameters are defined in the management function of that same liquidity that allow maximizing the return obtained and minimizing the opportunity costs associated with the holding of that same liquidity, in a safe and efficient way.

The Group's Chief Financial Officer regularly monitors the level of funding obtained, available credit facilities, cash availability, as well as the prospects of cash outflow in the short and medium term (including needs resulting from investment plans, which, with the exception of acquisitions of financial holdings carried out at the end of 2020, have been relatively low), in order to manage liquidity risk.

Liquidity risk management on Toyota Caetano Group aims to:

- (i) Liquidity, that is, guaranteeing permanent and most efficient access to sufficient funds to meet current payments on the respective due dates, as well as any requests for funds within the deadlines defined for this, even if not foreseen;
- (ii) Safety, which is the minimization of the probability of default in the repayment of any application in funds; and
- (iii) Financial Efficiency, which is ensuring that the Companies maximize the value / minimize the opportunity cost of holding excess liquidity in the short-term.

Any and all excess of liquidity existing in the Group is applied to the amortization of short-term debt, in accordance with criteria of economic and financial reasonableness.

For this purpose, liquidity management comprises the following aspects:

- (i) Consistent financial planning based on cash flow forecasts at the level of operations, according to different time horizons (weekly, monthly, annual and multi-annual);
- (ii) Diversification of funding sources;
- (iii) Diversification of the maturities of the debt issued in order to avoid excessive concentration of debt repayments in short periods of time;

(iv) Contracting with relationship banks for short-term credit lines, commercial paper programs, and other types of financial operations, ensuring a balance between adequate levels of liquidity and commitment fees supported.

The following table shows the maturity of each of the financial instrument's liabilities, with undiscounted values and based on the most pessimistic scenario, that is, the shortest period in which the liability becomes payable.

| 30/06/2022       | Less than 1 year | Between 1<br>and 2 years | Between 2<br>and 4 years | More than 4<br>years | Total       |
|------------------|------------------|--------------------------|--------------------------|----------------------|-------------|
| Loans            | 21.137.571       | 17.165.948               | 5.106.389                | 1.902.482            | 45.312.390  |
| Accounts payable | 34.267.096       | -                        | -                        | -                    | 34.267.096  |
| Other creditors  | 46.908.665       | 4.760.680                | -                        | -                    | 51.669.345  |
|                  | 102.313.332      | 21.926.628               | 5.106.389                | 1.902.482            | 131.248.831 |

| 31/12/2021       | Less than 1 year | Between 1<br>and 2 years | Between 2<br>and 4 years | More than 4<br>years | Total       |
|------------------|------------------|--------------------------|--------------------------|----------------------|-------------|
| Loans            | 22.280.235       | 17.447.880               | 6.152.931                | 1.774.960            | 47.656.006  |
| Accounts payable | 43.622.927       | -                        | -                        | -                    | 43.622.927  |
| Other creditors  | 33.812.518       | 2.275.204                | -                        | -                    | 36.087.722  |
|                  | 99.715.680       | 19.723.084               | 6.152.931                | 1.774.960            | 127.366.655 |

As at 30 June 2022 and 31 December 2021, the Group had a net debt of 30.248.401 Euros and 25.533.246 Euros, respectively, divided between current and non-current financing (Note 19) and cash and cash equivalents (Note 4) contracted with various institutions. The credit lines available and not used at that date totalled approximately 66 million Euros.

It should be noted that the Group, with the exception of the loan with a real guarantee where the ratio (covenant) between net debt and EBITDA is predicted and is calculated based on the consolidated accounts of the previous year, has not contracted any debt instruments with accelerated repayment clauses, in addition to those arising from the usual clauses related to the fulfilment of obligations by the Group, namely, payment obligations, interruption of activity, ownership clause, pari passu, negative pledge, being that the situations in which the financing obtained include real guarantees are disclosed in Note 35.

#### e) Equity risk

Management's primary objective is to ensure the continuity of operations, providing adequate remuneration to shareholders and the corresponding benefits to the other stakeholders of the Group. In order to achieve this objective, careful management of the capital used in the business is essential, seeking to ensure an optimal structure of the same, thus achieving the necessary cost reduction. In order to maintain or adjust the capital structure deemed adequate, Management may propose to the General Shareholders' Meeting the measures deemed necessary.

The Group seeks to maintain a level of equity appropriate to the characteristics of the main business and to ensure continuity and expansion. The balance of the capital structure is monitored based on the financial leverage ratio (defined as: net interest-bearing debt / (net interest-bearing debt + equity)).

|                           | 30/06/2022   | 31/12/2021   | 30/06/2021   |
|---------------------------|--------------|--------------|--------------|
| Loans                     | 45.312.390   | 47.656.006   | 48.624.303   |
| Cash and Cash equivalents | (15.063.989) | (22.122.760) | (18.831.598) |
| Net debt                  | 30.248.401   | 25.533.246   | 29.792.705   |
| Equity                    | 150.484.408  | 149.932.245  | 150.953.833  |
| Financial leverage ratio  | 16,74%       | 14,55%       | 16,48%       |

The gearing remains within acceptable levels as established by management.

f) Credit risk

The Group's credit risk results essentially from:

- (i) the risk of recovery of monetary assets entrusted to third parties; and
- (ii) of the risk of recovering the credits of entities outside the Company.

Credit risk is assessed at the initial moment and over time in order to monitor its evolution.

A significant portion of the amounts receivable from customers is dispersed among a large number of entities, a factor that contributes toward reducing the credit concentration risk. As a general rule, the Group's customers do not have a credit rating assigned.

The monitoring of credit risk is carried out by the Group's financial department, supervised by the Board of Directors, based on: i) the corporate nature of the debtors; ii) the type of transactions originating the balances receivable; iii) the experience of transactions carried out in the past; iv) in the credit limits established for each customer and v) in the possible guarantees provided by some customers, namely dealers and independent repairers with whom car concession contracts are signed.

The Group considers the probability of default with the initial recognition of the asset and depending on the occurrence of significant increases in credit risk on an ongoing basis in each reporting period. In order to assess whether there has been a significant increase in credit risk, the Group compares the risk of default occurring by reference to the reporting date, with the risk of default assessed by reference to the date of initial recognition.

In order to assess whether there has been a significant increase in credit risk, the Group takes into account, among others, the following indicators:

- Internal credit risk;
- External credit risk (when available);
- Current or expected adverse changes in the debtor's operating results;
- Significant increases in the credit risk of the debtor's other financial instruments;
- Significant changes in the value of collateral for liabilities, or in the quality of third-party guarantees;
- Significant changes in the debtor's expected performance and behaviour, including changes in the debtor's payment conditions at the level of the Group to which it belongs, as well as changes at the level of its operating results.

Macroeconomic information (such as market interest rates or growth rates) is incorporated into the internal credit model.

Independent of the above analysis, a significant increase in credit risk is presumed to exist if a debtor is in default by more than 30 days from the contractual payment date.

In terms of credit improvement instruments associated with accounts receivable from customers, the Group has the following situations:

- i. Dealers and Independent Repairers: this type of third party concerns the car retail network of "Toyota" and "Lexus" brand dealers, which operate under concession contracts for the purchase, resale of vehicles and provision of technical assistance services. Each of these independent dealers and repairers maintains an "on first demand" bank guarantee in favour of the Group, with a previously established ceiling, and the Group ensures that this limit is not exceeded;
- ii. General vehicle customers: despite the fact that this type of customer generally purchases vehicles for cash, there are, however, situations in which the Group accepts payment terms in instalments (namely with some customers in the rent-a-car area and driving schools). In most of these situations, the sale made considers a reservation of title clause associated with the vehicle sold or, alternatively, its ownership is not transferred until the vehicle is fully liquidated.

Default is considered to exist when the counterparty does not comply with contractual payments within 90 days of the due date of the invoices. The Group analyses on a case-by-case basis the balances receivable from customers that show collection and realization problems, making every effort towards their respective recovery, by means of an agreement with the customer or by judicial means, also maintaining such balances (even if subject to registration of an impairment loss) in the consolidated statement of financial position, until all attempts to recover the outstanding balance are exhausted and there are no assets for recovery (including the component relating to Value Added Tax with the Authority Tax) of said balances in the event of bankruptcy.

Accordingly, financial assets corresponding to accounts receivable are derecognised when there is no real expectation of recovery and after the process described above has been completed, and the necessary internal approvals are obtained for such derecognition. Therefore, there are no situations of possibility of recovering accounts receivable that have been subject to derecognition at the level of the consolidated financial statements.

#### Impairment of financial assets

Accounts receivable and Other debtors

The Company uses the simplified approach to calculate and record the expected credit losses required by IFRS 9, which allows using estimated impairment losses for all "Accounts receivable" and "Other debtors" balances. In order to measure expected credit losses, "Accounts receivable" and "Other debtors" balances were aggregated based on the shared credit risk characteristics, as well as on the days of delay. Estimated credit losses incorporate information from prospective estimates. The age of customer balances is detailed in Note 13.

Loans granted to related entities

The balances in "Loans granted to related parties" are considered to have a low credit risk and, therefore, impairment in credit losses recognized during the period are limited to expected credit losses estimated for 12 months. These financial assets are considered to have a "low credit risk" when they have a low irrecoverable risk and the debtor has a high capacity to meet its contractual cash flow liabilities in the short term.

In fact, for customers representing car dealers and repairers, the Group requires obtaining "on first demand" bank guarantees, which, as disclosed in the Notes to the consolidated financial statements of 31 December 2021, when exceeded, implies the termination of supplies.

Impairments on accounts receivable are calculated taking into account (a) the customer's risk profile, (b) the average collection period, and (c) the customer's financial condition. The movements of these adjustments for the periods ended 30 June 2022 and 2021 are disclosed in Note 25.

As at 30 June 2022, the Group considers that there is no need for additional impairment losses beyond the amounts recorded on those dates and summarized in Note 25.

The amounts related to customers and other third-party debts presented in the consolidated financial statements, which are net of impairments, represent the Group's maximum exposure to credit risk.

Cash equivalents

The following tables provide a summary as of June 30, 2022 and December 31, 2021 of the credit quality of bank deposits:

| 30/06/2022      |                                |            |  |  |
|-----------------|--------------------------------|------------|--|--|
| Deposits Rating | Rating Agency                  | Value      |  |  |
| A1              | Moody's                        | 145.331    |  |  |
| A2              | Moody's                        | 204.906    |  |  |
| A3              | Moody's                        | 1.225.621  |  |  |
| Aa3             | Moody's                        | 16.646     |  |  |
| B1              | Moody's                        | 1.081.035  |  |  |
| Ba3             | Moody's                        | 1.403.108  |  |  |
| Baa2            | Moody's                        | 7.150.775  |  |  |
| Baa3            | Moody's                        | 4.864      |  |  |
|                 | Others without rating assigned | 3.720.577  |  |  |
| Total           |                                | 14.952.863 |  |  |

| 31/12/2021      |                                |            |  |  |
|-----------------|--------------------------------|------------|--|--|
| Deposits Rating | Rating Agency                  |            |  |  |
| A2              | Moody's                        | 575.024    |  |  |
| A3              | Moody's                        | 3.957.555  |  |  |
| Aa3             | Moody's                        | 18.689     |  |  |
| B1              | Moody's                        | 615.096    |  |  |
| B2              | Moody's                        | 536.638    |  |  |
| Baa2            | Moody's                        | 12.075.366 |  |  |
| Baa3            | Moody's                        | 12.638     |  |  |
|                 | Others without rating assigned | 4.213.816  |  |  |
| Total           |                                | 22.004.822 |  |  |

The ratings presented correspond to the notations assigned by the rating agency Moody's.

(ii) External Risks

Another type of risk is external risks, which do not affect the Group's direct spectrum. Three different risks can be highlighted: the risk of supplying goods and materials, the risk of the macroeconomic context and the risk of competition.

a) Risk of supplying goods and materials

The risk of supplying goods and materials translates into the risk of lack of components, materials and raw materials necessary for the Group's production and normal operation. The SARS-CoV-2 pandemic led to constraints in the supply chain, with a shortage in the supply of components; in parallel and as a consequence, the logistics associated with the transport of goods were also affected; in fact, the total time associated with the transport of these goods has become longer (longer lead time in the provision of this service), a fact that results from the generalized reduction in the use of this service combined with the need for operators to make the most of the means used. As a result, the relevance of this risk has increased, going from low to medium to high.

The impact of this risk on the Group's activity is now rated as moderate to significant. To face this context, the Toyota Caetano Portugal Group has implemented concrete measures, namely:

- in the industrial area, namely in the assembly of vehicles, it focused on the production of models in which there is less scarcity of materials; this strategy is fully coordinated with the relevant customers and suppliers involved in this activity;
- in the area of cargo handling machines, considering the weak ability to influence the supply chain, it is resorting to the placement, with customers, of used equipment in temporary lease or loan;
- management of stocks, both upstream (suppliers) and downstream (dealers and end customers) is carried out rigorously, in line with the context of scarcity experienced;
- sales are being oriented towards the most profitable channels;
- the management of demonstration, courtesy and service vehicles was also revised, opting for a lower rotation without compromising the dissemination and promotion of the represented brands;
- the guidelines on the vehicle exhibition matrix were revised, adapting them to reality, namely: lower number of vehicles on display and placement of semi-new vehicles in the stands allocated to the activity of new vehicles;
- the discount policy for customers was also revised;
- across the board, and in line with usual practice, the companies of the Toyota Caetano Portugal Group have reinforced their strategy of reducing costs and optimizing available resources;
- additionally, and also as a common denominator for these companies, there is a strengthening of communication with employees, suppliers and customers to inform about the challenges we face; in particular, with customers, the implementation of contracts for later deliveries has been encouraged, thus witnessing an increase in the contract portfolio.
- b) Risk of the macroeconomic context

As for the macroeconomic context risk, this is the risk of external macroeconomic factors influencing a company's financial/productive capacity. This risk was also boosted by the pandemic, with the deceleration of economic activity and the increase in interest and inflation rates being the main factors that influenced the increase in the probability of occurrence of this risk from low to medium.

The Group closely monitors all macroeconomic changes in Portugal, Europe and the rest of the world, in order to ensure that it is on top of the situation and ready to act at the right time.

c) Risk of competition

Competition risk translates into the risk of losing market share to other competitors. In the current scenario, the Group seeks to ensure that it does not lose its current market share, and thus bets on a strategy based on innovation, service excellence, greater presence in digital channels and sustainability. In addition, it is important to highlight that Toyota is a renowned and prestigious brand, with several proofs given in terms of innovation and product diversification. Examples of

this are the Beyond Zero strategy, where the destination is not zero emissions, but going beyond that, a strategy combined with the offer of more and better mobility for all, promoting a more sustainable future, and the BRIT (Best Retailer in Town) program that aims to motivate all dealers to be the best in the areas where they operate.

It should also be noted that the Group frequently carries out benchmarking actions against its competitors. Therefore, this risk is considered to have a medium probability of occurrence.

#### (iii) Information technology (IT) and cybersecurity risks

IT and cybersecurity risks are fundamentally risks related to the security of information systems. Information systems form the basis of the Group and, as such, the existence of a security culture that provides all employees and partners with a clear perspective of their responsibilities in the field of information security is considered of strategic importance. Any security breach, whether intentional, negligence or criminal, can have a significant impact on data confidentiality, on the quality of operations, on the availability of information, among others, which could negatively affect the Group's profitability and reputation. It is essential to ensure that all employees have access to the information necessary for the performance of their activities but requiring them to respect the implemented information security controls and commitment to the values of confidentiality, integrity and availability.

In this sense, the Group adopted the Toyota Motors Corporation safety framework called the All Toyota Security Guidelines. This includes a set of technical and organizational measures in different areas, namely in information security management, operational and network security, physical security, incident management, classification and protection of information, access control, in risk analysis and training.

Considering the diversity and complexity of the areas of Information Systems in general and Information Security in particular, Toyota Caetano Portugal, S.A. outsources services related to information systems to the company Rigor - Consultoria e Gestão, S.A, a company of the Salvador Caetano Group with expertise in all areas of Information Systems.

In view of the increase in remote work, the increase in cybercrime and the evolution of the techniques used by cybercriminals, the Group not only maintains constant monitoring and audits of its systems, but also has plans to implement additional technical and organizational measures to face these new risks.

(iv) Legal, Tax and Regulatory Risks

The Toyota Caetano Portugal Group, S.A. identifies fiscal risks arising mainly from the context of permanent legislative change in which we live. If, on one hand, the requirements resulting from OECD programs and European legislation have been increasing, on the other hand, national legislation itself constantly produces regulatory changes with an impact on the Group's activity.

The context of fiscal regulatory instability can not only lead to losses resulting from non-compliance with current legislation, but also directly and indirectly condition strategic business options, affecting its economic profitability. In addition to the tax risks inherent to business activity, there is also the risk resulting from the unpredictability of automobile taxation, with direct impacts on the behaviour of our customers.

The Toyota Caetano Group is committed to complying with all tax obligations to which it is subject, valuing its reputational assets and taking an active stance in the pursuit of this objective. To ensure the constant prevention and mitigation of tax risks, it uses internal teams specifically dedicated to this area, and external consultancy provided by entities of recognized ethical and professional standards.

With regard to legal risks, the main risk of the Group's activity has to do with possible legislative changes that may have an impact on operations - namely labour legislation, environmental regulation, European and national regulation in terms of competition and restrictive trade practices, among others – that may affect the development of the activity.

The Legal Department of the Salvador Caetano Group seeks, in close cooperation with the tax area, the human resources area and the operational areas, to safeguard the interests of the Group, in a sustainable way and with respect for the applicable legislation.

Litigation processes in which the Group is involved are regularly communicated to management, so that preventive measures can be taken to avoid similar processes in the future.

The Legal Department is also responsible for preventing and monitoring the risks associated with non-compliance with the legislation on the protection of personal data, corporate governance and corruption, striving to verify the application of the code of conduct and monitoring the channel used for reporting irregularities.

In both areas - legal and tax - ongoing training, an integrated approach of the various technical and operational teams and the promotion of the best practices identified are valued.

# 2.5 CONVERSION OF FINANCIAL STATEMENTS OF FOREIGN ENTITIES

As at 30 June 2022 and 31 December 2021, the exchange rates used in the conversion to Euros of the accounts of foreign subsidiaries were as follows:

| 30/06/2022            |          |                                            |                     |                   |                      |
|-----------------------|----------|--------------------------------------------|---------------------|-------------------|----------------------|
|                       |          | Final Exchange                             | Average Historical  | Constitution date | Final Exchange       |
|                       | Currency | 30/06/2022                                 | Exchange 30/06/2022 | Exchange          | 31/12/2021           |
| Caetano Auto CV, S.A. | CVE      | 0,009069                                   | 0,009069            | 0,009069          | 0,009069             |
| Caetano UK, Limited   | GBP      | 1,165230                                   | 1,187090            | 1,167980          | 1,190080             |
| Applicability         |          | Balance Sheet<br>accounts except<br>Equity | Results accounts    | Share Capital     | Retained<br>Earnings |

| 31/12/2021            |                                                                             |                                            |                  |               |                      |  |  |  |  |
|-----------------------|-----------------------------------------------------------------------------|--------------------------------------------|------------------|---------------|----------------------|--|--|--|--|
|                       | Final Exchange<br>Average Historical<br>Constitution date<br>Final Exchange |                                            |                  |               |                      |  |  |  |  |
|                       | Currency                                                                    | 31/12/2021                                 | Exchange dez/21  | Exchange      | 01/12/2020           |  |  |  |  |
| Caetano Auto CV, S.A. | CVE                                                                         | 0,009069                                   | 0,009069         | 0,009069      | 0,009069             |  |  |  |  |
| Caetano UK, Limited   | GBP                                                                         | 1,190080                                   | 1,163330         | 1,167980      | 1,112310             |  |  |  |  |
| Applicability         |                                                                             | Balance Sheet<br>accounts except<br>Equity | Results accounts | Share Capital | Retained<br>Earnings |  |  |  |  |

# 3. SUBSIDIARY COMPANIES INCLUDED IN THE CONSOLIDATION

The Group Companies included in the consolidation using the full consolidation method and the respective proportion of the capital held at 30 June 2022 and 31 December 2021 are as follows:

| Companies                                                         | Effective participation percentage |            |  |  |
|-------------------------------------------------------------------|------------------------------------|------------|--|--|
|                                                                   |                                    |            |  |  |
|                                                                   | 30/06/2022                         | 31/12/2021 |  |  |
| Toyota Caetano Portugal, S.A.                                     | Parent Company                     |            |  |  |
| Caetano Auto CV, S.A.                                             | 81,24%                             | 81,24%     |  |  |
| Caetano Renting, S.A.                                             | 100,00%                            | 100,00%    |  |  |
| Caetano - Auto, S.A.                                              | 98,74%                             | 98,74%     |  |  |
| Destaque Mourisco - Sociedade Imobiliária, Lda. 8                 | 56,28%                             | 56,28%     |  |  |
| Salvador Caetano Seguros - Mediação de Seguros, Unipessoal Lda. 9 | 98,74%                             | -          |  |  |

These companies were included in the consolidation using the full consolidation method, as established by IFRS 10 – "Consolidated financial statements" (control of the subsidiary through majority of voting rights and exposure to returns from relevant activities).

# 4. CASH AND CASH EQUIVALENTS

As of June 30, 2022, December 31, 2021 and June 30, 2021 the cash and cash equivalents detail was as follows:

|               | 30/06/2022 | 31/12/2021 | 30/06/2021 |
|---------------|------------|------------|------------|
| Cash          | 111.126    | 117.938    | 69.467     |
| Bank deposits | 14.952.863 | 22.004.822 | 18.762.131 |
|               | 15.063.989 | 22.122.760 | 18.831.598 |

<sup>8</sup> Company incorporated in 2021 and directly owned by the company Caetano-Auto, S.A. by 57%.

<sup>9</sup> Company included in the consolidation perimeter in 2022 and directly owned by the company Caetano-Auto, S.A. at 100%.

# 5. TANGIBLE FIXED ASSETS

As at 30 June 2022 and 31 December 2021, the movements in tangible fixed assets, as well as in the respective depreciation and accumulated impairment losses, were as follows:

| 30/06/2022                                            |                                  |                                         |                    |                        |                             |                                   |                                         |                              |                        |
|-------------------------------------------------------|----------------------------------|-----------------------------------------|--------------------|------------------------|-----------------------------|-----------------------------------|-----------------------------------------|------------------------------|------------------------|
|                                                       | Land and<br>Natural<br>Resources | Buildings and<br>other<br>constructions | Basic<br>Equipment | Transport<br>Equipment | Administrative<br>Equipment | Other<br>Tangible<br>Fixed Assets | Tangible<br>Fixed Assets<br>in Progress | Assets under<br>Right of use | Total                  |
| Gross assets:                                         |                                  |                                         |                    |                        |                             |                                   |                                         |                              |                        |
| Initial balance on December 31, 2021                  | 18.046.963                       | 90.360.212                              | 64.176.139         | 67.222.269             | 9.155.895                   | 5.029.037                         | 479.286                                 |                              | 36.558.061 291.027.862 |
| Additions                                             | 87.440                           | 427.924                                 | 824.957            | 1.867.668              | 26.634                      | 204.244                           | 555.109                                 | 15.718                       | 4.009.694              |
| Disposals and write-offs                              | -                                | -                                       | (35.518)           | (3.190.088)            | -                           | -                                 | (93.207)                                | (226.753)                    | (3.545.566)            |
| Transfers from/to inventories                         | -                                | -                                       | -                  | 9.606.254              | -                           | -                                 | -                                       | 1.321.228                    | 10.927.482             |
| Transfers and reclassifications                       | -                                | 226.509                                 | -                  | -                      | -                           | 42.988                            | (269.497)                               | -                            | -                      |
| Reversal of assets to the entity at lease termination | 58.750                           | 176.250                                 | -                  | 2.997.798              | -                           | -                                 | -                                       | (3.232.798)                  | -                      |
| Final balance on June 30, 2022                        | 18.193.153                       | 91.190.895                              | 64.965.578         | 78.503.901             | 9.182.529                   | 5.276.269                         | 671.691                                 |                              | 34.435.456 302.419.472 |
| Accumulated depreciation and impairment losses:       |                                  |                                         |                    |                        |                             |                                   |                                         |                              |                        |
| Initial balance on December 31, 2021                  | -                                | 66.835.828                              | 59.917.001         | 33.095.375             | 8.262.847                   | 4.539.318                         | -                                       |                              | 17.006.295 189.656.664 |
| Depreciations of the period                           | -                                | 943.901                                 | 451.480            | 2.927.388              | 108.871                     | 63.545                            | -                                       | 2.569.230                    | 7.064.415              |
| Disposals and write-offs                              | -                                | -                                       | (17.227)           | (2.825.956)            | -                           | -                                 | -                                       | (173.754)                    | (3.016.937)            |
| Transfers from/to inventories                         | -                                | -                                       | -                  | (4.280.928)            | -                           | -                                 | -                                       | -                            | (4.280.928)            |
| Reversal of assets to the entity at lease termination | -                                | 21.738                                  | -                  | 2.313.226              | -                           | -                                 | -                                       | (2.334.964)                  | -                      |
| Final balance on June 30, 2022                        | -                                | 67.801.467                              | 60.351.254         | 31.229.105             | 8.371.718                   | 4.602.863                         | -                                       |                              | 17.066.807 189.423.214 |
| Net value                                             | 18.193.153                       | 23.389.428                              | 4.614.324          | 47.274.796             | 810.811                     | 673.406                           | 671.691                                 |                              | 17.368.649 112.996.258 |

| 31/12/2021                                            |                                  |                                         |                    |                        |                             |                                |                                         |                              |              |
|-------------------------------------------------------|----------------------------------|-----------------------------------------|--------------------|------------------------|-----------------------------|--------------------------------|-----------------------------------------|------------------------------|--------------|
|                                                       | Land and<br>Natural<br>Resources | Buildings and<br>other<br>constructions | Basic<br>Equipment | Transport<br>Equipment | Administrative<br>Equipment | Other Tangible<br>Fixed Assets | Tangible Fixed<br>Assets in<br>Progress | Assets under<br>Right of use | Total        |
| Gross assets:                                         |                                  |                                         |                    |                        |                             |                                |                                         |                              |              |
| Initial balance on December 31, 2020                  | 17.195.624                       | 88.367.387                              | 63.523.819         | 61.104.368             | 9.042.508                   | 4.895.565                      | 75.520                                  | 39.305.385                   | 283.510.176  |
| Additions                                             | -                                | 508.378                                 | 569.531            | 26.317                 | 113.387                     | 133.472                        | 420.657                                 | 773.059                      | 2.544.801    |
| Disposals and write-offs                              | (11)                             | (625.094)                               | (20.643)           | (6.746.705)            | -                           | -                              | -                                       | (182.956)                    | (7.575.409)  |
| Transfers from/to inventories                         | -                                | -                                       | -                  | 6.790.784              | -                           | -                              | -                                       | 4.973.347                    | 11.764.131   |
| Others                                                | 150.000                          | -                                       | -                  | -                      | -                           | -                              | -                                       | 634.163                      | 784.163      |
| Reversal of assets to the entity at lease termination | 701.350                          | 2.109.541                               | 103.432            | 6.047.505              | -                           | -                              | (16.891)                                | (8.944.937)                  | -            |
| Final balance on December 31, 2021                    | 18.046.963                       | 90.360.212                              | 64.176.139         | 67.222.269             | 9.155.895                   | 5.029.037                      | 479.286                                 | 36.558.061                   | 291.027.862  |
| Accumulated depreciation and impairment losses:       |                                  |                                         |                    |                        |                             |                                |                                         |                              |              |
| Initial balance on December 31, 2020                  | -                                | 65.148.062                              | 59.035.719         | 33.351.180             | 8.050.869                   | 4.429.953                      | -                                       | 16.763.863                   | 186.779.646  |
| Depreciations of the period                           | -                                | 1.803.885                               | 876.166            | 11.950.602             | 211.978                     | 109.365                        | -                                       | 5.587.832                    | 20.539.828   |
| Disposals and write-offs                              | -                                | (615.010)                               | (16.971)           | (5.544.696)            | -                           | -                              | -                                       | (137.783)                    | (6.314.460)  |
| Transfers from/to inventories                         | -                                | -                                       | -                  | (11.832.090)           | -                           | -                              | -                                       | -                            | (11.832.090) |
| Others                                                | -                                | -                                       | -                  | -                      | -                           | -                              | -                                       | 483.740                      | 483.740      |
| Reversal of assets to the entity at lease termination | -                                | 498.891                                 | 22.087             | 5.170.379              | -                           | -                              | -                                       | (5.691.357)                  | -            |
| Final balance on December 31, 2021                    | -                                | 66.835.828                              | 59.917.001         | 33.095.375             | 8.262.847                   | 4.539.318                      | -                                       | 17.006.295                   | 189.656.664  |
| Net value                                             | 18.046.963                       | 23.524.384                              | 4.259.138          | 34.126.894             | 893.048                     | 489.719                        | 479.286                                 | 19.551.766                   | 101.371.198  |

The movements recorded under the heading "Transport equipment" essentially refer to vehicles and cargo handling machines ("Forklifts") at the service of the Group, as well as for operational rental to customers.

The transfers between the caption "Assets under right of use" and "Transport equipment" in the amount of 684.572 Euros (877.126 Euros as at 31 December 2021) correspond to the reclassification by the Group of cargo handling machines whose financing contract has ended, and the Group acquired them in accordance with the established contractual arrangements.

As at 30 June 2022 and 31 December 2021, no accumulated impairment losses of tangible fixed assets are recognized.

|                                        |             | Values in Tangible Fixed Assets on 30/06/2022 |            | Values in Tangible Fixed Assets on 31/12/2021 |                              |            |  |
|----------------------------------------|-------------|-----------------------------------------------|------------|-----------------------------------------------|------------------------------|------------|--|
| Position of assets acquired by leasing | Gross value | Accumulated<br>Depreciations                  | Net value  | Gross value                                   | Accumulated<br>Depreciations | Net value  |  |
| Santarém Colisão                       | -           | -                                             | -          | 235.000                                       | 21.738                       | 213.262    |  |
| Carnaxide                              | 3.246.231   | 781.124                                       | 2.465.107  | 3.246.231                                     | 750.691                      | 2.495.540  |  |
| Caldas da Rainha                       | 936.837     | 79.046                                        | 857.791    | 936.837                                       | 70.263                       | 866.574    |  |
| Industrial equipment                   | 23.112.151  | 13.015.433                                    | 10.096.718 | 25.015.473                                    | 13.606.654                   | 11.408.819 |  |
| Guimarães - Building                   | 940.138     | 414.376                                       | 525.762    | 940.138                                       | 355.957                      | 584.181    |  |
| Trofa - Building                       | 89.117      | 89.117                                        | -          | 89.117                                        | 89.117                       | -          |  |
| Aveiro - Building                      | 417.314     | 205.232                                       | 212.082    | 416.274                                       | 176.312                      | 239.962    |  |
| Tomar - Stand                          | 39.630      | 24.501                                        | 15.129     | 39.630                                        | 21.009                       | 18.621     |  |
| Tomar - Workshop                       | 27.582      | 18.417                                        | 9.165      | 27.582                                        | 15.799                       | 11.783     |  |
| Rio de Mouro - Building                | 5.145.732   | 2.311.232                                     | 2.834.500  | 5.131.055                                     | 1.795.869                    | 3.335.186  |  |
| Braga - Garage                         | 368.245     | 116.612                                       | 251.633    | 368.245                                       | 98.199                       | 270.046    |  |
| Basic equipment                        | 112.479     | 11.717                                        | 100.762    | 112.479                                       | 4.687                        | 107.792    |  |
| TOTAL                                  | 34.435.456  | 17.066.807                                    | 17.368.649 | 36.558.061                                    | 17.006.295                   | 19.551.766 |  |

As at 30 June 2022 and 31 December 2021, the assets used under a lease are as follows:

#### 6. INVESTMENT PROPERTIES

As at 30 June 2022, 31 December 2021 and 30 June 2021, the caption "Investment properties" corresponds to real estate assets held by the Group that are generating income through the respective lease or for valorisation. These assets are recorded at acquisition cost and are subsequently subject to depreciation in accordance with their defined useful lives, as well as to the recording of impairment losses whenever necessary.

The rents obtained referring to Investment Properties amounted to 1.443.557 Euros in the six-month period ended on 30 June 2022 (1.167.335 Euros on 30 June 2021), which are included in the disclosure made in Note 30.

According to valuations reported as at 31 December 2021 or prior years, the fair value of those investment properties amounted to approximately 51 million Euros.

Management understands that a possible change (within a normality scenario) in the main assumptions used in the calculation of fair value will not give rise to impairment losses, in addition to the losses recorded in previous years.

The detail of the net book value as at 30 June 2022 and 31 December 2021 of the real estate assets recorded under the heading "Investment Properties", as well as the respective fair value, can be summarized as follows:

|                                                         | 30/06/2022        |                     |                                | 31/12/2021        |                     |                                |  |
|---------------------------------------------------------|-------------------|---------------------|--------------------------------|-------------------|---------------------|--------------------------------|--|
| Location                                                | Net Book<br>Value | Evaluation<br>Value | External<br>Evaluation<br>Date | Net Book<br>Value | Evaluation<br>Value | External<br>Evaluation<br>Date |  |
| Vila Nova de Gaia - Av. da República                    | 112.005           | 1.179.900           | 18/12/2020                     | 113.999           | 1.179.900           | 18/12/2020                     |  |
| Braga - Av. da Liberdade                                | -                 | 2.146.800           | 20/12/2021                     | -                 | 2.146.800           | 20/12/2021                     |  |
| Porto - Rua do Campo Alegre                             | 666.818           | 2.886.000           | 20/12/2021                     | 680.918           | 2.886.000           | 20/12/2021                     |  |
| Caldas da Rainha - Rua Dr. Miguel Bombarda              | 17.531            | 86.000              | 28/12/2021                     | 17.531            | 86.000              | 28/12/2021                     |  |
| Amadora - Rua Elias Garcia                              | 165.453           | 160.200             | 18/12/2020                     | 167.185           | 160.200             | 18/12/2020                     |  |
| Portalegre - Zona Industrial                            | 160.681           | 156.100             | 21/12/2020                     | 163.249           | 156.100             | 21/12/2020                     |  |
| Portimão - Cabeço do Mocho                              | 724.781           | 707.700             | 20/12/2021                     | 724.781           | 707.700             | 20/12/2021                     |  |
| Rio Maior                                               | 107.000           | 117.100             | 21/12/2020                     | 107.000           | 117.100             | 21/12/2020                     |  |
| Vila Nova de Gaia - Av. Vasco da Gama (edifícios A e B) | 2.168.809         | 14.903.000          | 29/12/2020                     | 2.257.781         | 14.903.000          | 29/12/2020                     |  |
| Vila Nova de Gaia - Av. Vasco da Gama (edifícios G)     | 733.284           | 8.918.700           | 20/12/2020                     | 743.455           | 8.918.700           | 20/12/2020                     |  |
| Carregado - Quinta da Boa Água / Quinta do Peixoto      | 4.888.046         | 19.412.500          | 30/12/2020                     | 4.898.390         | 19.412.500          | 30/12/2020                     |  |
| Vila Nova de Gaia - Rua das Pereiras                    | -                 | -                   | -                              | 202.054           | 625.100             | 28/12/2020                     |  |
|                                                         | 9.744.407         | 50.674.000          |                                | 10.076.343        | 51.299.100          |                                |  |

The fair value of external evaluations of investment properties that are subject to disclosure as at 30 June 2022 and 31 December 2021 was determined by real estate evaluations carried out by independent specialized entities using one of the following methods depending on the specific situation of the property: comparative market method, cost method or income method. The Group promotes periodic and rotating real estate evaluations of its investment properties by independent and specialized entities, thus ensuring that the disclosure of fair value is kept up to date.

Regarding the real estate asset located in Braga – Avenida da Liberdade, it is an old property, acquired in 1981, for which, on the respective acquisition date, no amount was considered for the "land" component. Consequently, at the current date, the entirety of that acquisition cost was depreciated, thus presenting that asset with a net book value of zero.

Regarding the classification of the above mentioned valuation methodologies, for the purposes of framing, in the fair value hierarchy (IFRS 13), they are classified essentially in Level 3 (fair value determined based on inputs not observable in the market, developed to reflect the assumptions to be used by market agents).

The independent external evaluations carried out are essentially based on the application of the comparative market method, which has as inputs, namely, the unit sales index per square meter of comparable assets and the area of the property, and the income method, which has as inputs the income that can be generated by it and a capitalization rate (yield) considered adequate in view of the characteristics and location of the real estate asset in question.

The movement of the item "Investment properties" on June 30, 2022 and December 31, 2021 was as follows:

| 30/06/2022                                      |           |            |            |  |  |  |
|-------------------------------------------------|-----------|------------|------------|--|--|--|
|                                                 | Land      | Buildings  | Total      |  |  |  |
| Gross Value:                                    |           |            |            |  |  |  |
| Initial balance on December 31, 2021            | 6.919.227 | 28.940.256 | 35.859.483 |  |  |  |
| Disposals and write-offs                        | (71.890)  | (236.662)  | (308.552)  |  |  |  |
| Final balance on June 30, 2022                  | 6.847.337 | 28.703.594 | 35.550.931 |  |  |  |
| Accumulated depreciation and impairment losses: |           |            |            |  |  |  |
| Initial balance on December 31, 2021            | -         | 25.783.140 | 25.783.140 |  |  |  |
| Depreciations of the period                     | -         | 129.882    | 129.882    |  |  |  |
| Disposals and write-offs                        | -         | (106.498)  | (106.498)  |  |  |  |
| Final balance on June 30, 2022                  | -         | 25.806.524 | 25.806.524 |  |  |  |
| Net Value                                       | 6.847.337 | 2.897.070  | 9.744.407  |  |  |  |

| 31/12/2021                                      |           |             |             |  |  |  |  |
|-------------------------------------------------|-----------|-------------|-------------|--|--|--|--|
|                                                 | Land      | Buildings   | Total       |  |  |  |  |
| Gross Value:                                    |           |             |             |  |  |  |  |
| Initial balance on December 31, 2020            | 7.259.140 | 32.696.944  | 39.956.084  |  |  |  |  |
| Transfers                                       | (339.913) | (3.756.688) | (4.096.601) |  |  |  |  |
| Final balance on December 31, 2021              | 6.919.227 | 28.940.256  | 35.859.483  |  |  |  |  |
| Accumulated depreciation and impairment losses: |           |             |             |  |  |  |  |
| Initial balance on December 31, 2020            | -         | 28.796.406  | 28.796.406  |  |  |  |  |
| Depreciations of the period                     | -         | 285.671     | 285.671     |  |  |  |  |
| Transfers                                       | -         | (3.298.937) | (3.298.937) |  |  |  |  |
| Final balance on December 31, 2021              | -         | 25.783.140  | 25.783.140  |  |  |  |  |
|                                                 |           |             |             |  |  |  |  |
| Net Value                                       | 6.919.227 | 3.157.116   | 10.076.343  |  |  |  |  |

The value of accumulated impairment losses as at 30 June 2022 and 31 December 2021 amounts to 200.000 Euros.

In 2022, the property located at Rua das Pereiras in Vila Nova de Gaia was sold.

The transfers that took place in Investment Properties in 2021 refer to properties transferred to Non-Current Assets held for Sale.

# 7. NON-CURRENT ASSETS HELD FOR SALE

As at 30 June 2022 and 31 December 2021, "Non-Current Assets Held for Sale" corresponded to the Group's non-operating assets that were covered by promissory purchase and sale agreements, and the Board of Directors' expectation is that the corresponding sale will essentially take place in 2022.

The detail of non-current assets held for sale at 30 June 2022 and 31 December 2021 is:

| Non-current assets held for sale    | 30/06/2022 | 31/12/2021 |
|-------------------------------------|------------|------------|
| - Property in Castelo Branco        | 680.334    | 646.218    |
| - Property in Teivas, Viseu         | -          | 1.034.116  |
| - Property in Quinta do Cano, Viseu | 1.494.887  | 1.494.887  |
| Net Value                           | 2.175.221  | 3.175.221  |

In 2022, the sale of the property in Teivas, Viseu was carried out. No capital gain was recorded from its sale, and its realization value amounted to 885 thousand Euros.

### 8. GOODWILL

During the six-month period ended on 30 June 2022 and the year ended on 31 December 2021, there were no movements in the item "Goodwill".

The item "Goodwill" fully refers to the amount determined in the acquisition, in previous years, of the subsidiary Movicargo, whose activity was transferred (through a merger process) to the parent company Toyota Caetano Portugal, S.A. in previous years.

Goodwill is not amortized. Impairment tests are carried out on the value of Goodwill on an annual basis. As at 30 June 2022, there are no signs of impairment, so it was not necessary to carry out an impairment test.

# 9. INTANGIBLE ASSETS

As at 30 June 2022 and 31 December 2021, the movements in intangible assets, as well as in the respective amortizations and accumulated impairment losses, were as follows:

| 30/06/2022                                      |                         |                                            |                      |                               |                                     |           |
|-------------------------------------------------|-------------------------|--------------------------------------------|----------------------|-------------------------------|-------------------------------------|-----------|
|                                                 | Development<br>Expenses | Industrial<br>property and<br>other rights | Computer<br>programs | Other<br>Intangible<br>Assets | Intangible<br>assets in<br>progress | Total     |
| Gross assets:                                   |                         |                                            |                      |                               |                                     |           |
| Initial balance on December 31, 2021            | 1.477.217               | 667.481                                    | 2.196.011            | -                             | 935.871                             | 5.276.580 |
| Additions                                       | -                       | 1.345                                      | 1.650                | 5.070                         | 186.114                             | 194.179   |
| Final balance on June 30, 2022                  | 1.477.217               | 668.826                                    | 2.197.661            | 5.070                         | 1.121.985                           | 5.470.759 |
| Accumulated amortization and impairment losses: |                         |                                            |                      |                               |                                     |           |
| Initial balance on December 31, 2021            | 1.477.217               | 645.566                                    | 2.158.832            | -                             | -                                   | 4.281.615 |
| Amortization of the period                      | -                       | 19.125                                     | 7.723                | 459                           | -                                   | 27.307    |
| Final balance on June 30, 2022                  | 1.477.217               | 664.691                                    | 2.166.555            | 459                           | -                                   | 4.308.922 |
| Net value                                       | -                       | 4.135                                      | 31.106               | 4.611                         | 1.121.985                           | 1.161.837 |

| 31/12/2021                                      |                         |                                            |           |                      |                                     |           |  |
|-------------------------------------------------|-------------------------|--------------------------------------------|-----------|----------------------|-------------------------------------|-----------|--|
|                                                 | Development<br>Expenses | Industrial<br>property and<br>other rights | Transfers | Computer<br>programs | Intangible<br>assets in<br>progress | Total     |  |
| Gross assets:                                   |                         |                                            |           |                      |                                     |           |  |
| Initial balance on December 31, 2020            | 1.504.751               | 615.996                                    | 81.485    | 2.154.870            | 598.319                             | 4.955.421 |  |
| Additions                                       | -                       | -                                          | -         | 13.607               | 337.552                             | 351.159   |  |
| Disposals and write-offs                        | -                       | (30.000)                                   | -         | -                    | -                                   | (30.000)  |  |
| Transfers                                       | (27.534)                | 81.485                                     | (81.485)  | 27.534               | -                                   | -         |  |
| Final balance on December 31, 2021              | 1.477.217               | 667.481                                    | -         | 2.196.011            | 935.871                             | 5.276.580 |  |
| Accumulated amortization and impairment losses: |                         |                                            |           |                      |                                     |           |  |
| Initial balance on December 31, 2020            | 1.477.217               | 523.250                                    | 81.485    | 2.151.979            | -                                   | 4.233.931 |  |
| Amortization of the period                      | -                       | 70.831                                     | -         | 6.853                | -                                   | 77.684    |  |
| Disposals and write-offs                        | -                       | (30.000)                                   | -         | -                    | -                                   | (30.000)  |  |
| Transfers                                       | -                       | 81.485                                     | (81.485)  | -                    | -                                   | -         |  |
| Final balance on December 31, 2021              | 1.477.217               | 645.566                                    | -         | 2.158.832            | -                                   | 4.281.615 |  |
| Net value                                       | -                       | 21.915                                     | -         | 37.179               | 935.871                             | 994.965   |  |

The amounts recorded as at 30 June 2022 and 31 December 2021 under the heading "Intangible assets in progress" are related to projects for the implementation of new management software, which are expected to become firm during the years 2022 and 2024.

# 10. FINANCIAL INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

#### Breakdown of the book value of investments in joint ventures and associates

As of June 30, 2022 and December 31, 2021, the heading of financial investments in associates and joint ventures is detailed as follows:

|                                                             | Headquarters      | % Held | 30/06/2022 | 31/12/2021 |
|-------------------------------------------------------------|-------------------|--------|------------|------------|
| Associate                                                   |                   |        |            |            |
| Kinto Portugal, S.A. (consolidated)                         | Vila Nova de Gaia | 49,00% | 24.083.371 | 23.699.123 |
|                                                             |                   |        |            |            |
| Joint venture                                               |                   |        |            |            |
| CaetanoBus - Fabricação de Carroçarias, S.A. (consolidated) | Vila Nova de Gaia | 61,94% | 22.602.753 | 20.295.498 |
|                                                             |                   |        | 46.686.124 | 43.994.621 |

Regarding CaetanoBus, despite the percentage of capital held being 61,94%, given the existence of an investment agreement with the other shareholder of that company, which provides that decisions on relevant activities (operational and financial) must be taken unanimously by the two shareholders, the Board of Directors considered that the investment made corresponds to a joint venture, which is why it is accounted for in accordance with the equity method.

Within the scope of the acquisition transaction carried out, the investment agreement that was previously in force with respect to the previous shareholder structure was fully maintained and transferred to the shareholder structure after the transaction. Thus, this agreement, which was already considered by the previous shareholder and seller of the participation as a joint venture, was subject to an evaluation and analysis by the Board of Directors of Toyota Caetano Portugal, S.A., which maintained the same understanding. In fact, the aforementioned investment agreement (and also the Bylaws of the acquired company) establishes that decisions on the relevant activities of the subsidiary require unanimity at the General Shareholders' Meeting. The main activities / relevant decisions are, at the General Meeting level, as follows:

- Any amendment to the deed of incorporation, the bylaws or any other document constituting the company;
- Any change to the Company's corporate type, any merger or consolidation with another entity, any sale or transfer of all or a substantial part of the assets or business, as well as their liquidation or dissolution;
- Any issue or redemption of the Company's shares or any other increase, decrease or other modification to the Company's share capital;
- Any change to the Company's dividend policy or any change to the distribution of profits or assets;
- Incorporation of a subsidiary or acquisition of another entity by the Company;
- Any public offering or listing on a stock exchange of any shares of the Company;
- Adoption or modification of the compensation of the Company's directors or managers or of the general compensation policy for the Company's employees;
- Granting of guarantees of a value equal to or greater than 500.000 Euros to guarantee the obligations of the Company's subsidiaries;
- Amendment and approval of the Company's Annual Business Plan or New Business Plan;
- Appointment or removal of any Chief Executive Officer, Chief Financial Officer, Chief Operating Officer or any Executive Director or General Director, or any similar position to the General Director of the Company.

On the other hand, in the Board of Directors (made up of a maximum of nine members), decisions on relevant activities require a favourable vote of at least three directors appointed by Toyota Caetano Portugal, S.A. and the favourable vote of two directors appointed by the shareholder Mitsui & Co., Ltd.. At the level of the Board of Directors, the relevant activities / decisions that require unanimity are as follows:

- Any transactions between the Company and its subsidiaries, except transactions in the ordinary course of business;
- Any sale (other than in the ordinary course of business) of any property, or transfer or other disposition or grant of any security or other encumbrance on any assets of the Company, as long as they are not included or provided for in any of the Business Plans or with an amount exceeding 100.000 Euros in a transaction or series of transactions in the same year;
- Initiation of any litigation, arbitration or legal process, where its value exceeds 10.000 Euros;
- Any loan or other financing by the Company (excluding commercial financing to customers in the ordinary course of business up to an individual amount not exceeding 1.000.000 Euros, provided that such amount is not covered by a letter of credit, commercial insurance, or any guarantee of trusted institutions such as banks) to any person or any guarantee to be provided by the Company to guarantee obligations of any entity other than the Company or its subsidiaries, unless such loans or financing are provided up to the individual amount that does not exceed 100.000 Euros;
- Any loan or other event that generates debt, or issuance of bonds or debentures (whether convertible or not), by the Company, in an amount exceeding 1.500.000 Euros in a transaction or series of transactions in the same year;
- Any purchase, lease (except in the ordinary course of business) or other acquisition of any assets or other investments by the Company not included in any of the Business Plans or involving an amount exceeding 500.000 Euros in one transaction or series of transactions in the same year;
- Any lease in the ordinary course of business by the Company not included in any of the Business Plans or involving an amount exceeding 1.000.000 Euros in a transaction or series of transactions in the same year;
- Signing, amending or terminating any contract between the Company and its subsidiaries that contains commitments to repurchase products sold by the subsidiaries;
- Guarantees provided by the Company to guarantee the obligations of any of its subsidiaries or third parties, with a value of less than 500.000 Euros;
- Signing, amending or terminating a contract with a shareholder or its subsidiaries (of the shareholder);
- Any development of a new product or production line with a value exceeding 500.000 Euros by the Company, if not included or foreseen in the Business Plan;
- Signing, amending or terminating any contract with a term of more than one year or involving an amount greater than 10 million Euros in a transaction or series of transactions, or of any distribution, agency, sales representative or other framework contract, master-contract or basic agreement or any other agreement that grants exclusivity to any person or entity.

Finally, in accordance with the aforementioned investment agreement, it should be noted that in the event of a deadlock, an eventual decision will never be based on a simple majority of voting rights, and any of the shareholders is ultimately entitled to acquire the interest from the other shareholder.

Thus, the above mentioned constitutes the basis of assessment that the Board of Directors of Toyota Caetano Portugal, S.A. considered to conclude on the classification of this investment as a joint venture.

Summarized financial information of the subsidiaries

As of June 30, 2022 and December 31, 2021, the summarized financial information of the associate and joint venture detailed above can be analysed as follows:

|                                              |            | Caetanobus Consolidated 10 |             |            | Kinto Portugal Consolidated 11 |             |  |
|----------------------------------------------|------------|----------------------------|-------------|------------|--------------------------------|-------------|--|
| Item                                         | 30/06/2022 | 31/12/2021                 |             | 30/06/2022 | 31/12/2021                     |             |  |
| Non-current assets                           |            | 33.190.549                 | 33.523.649  |            | 166.486.893                    | 158.001.149 |  |
| Current assets                               |            | 51.509.410                 | 50.570.262  |            | 26.456.196                     | 48.046.846  |  |
| Total assets                                 |            | 84.699.959                 | 84.093.911  |            | 192.943.089                    | 206.047.995 |  |
| Non-current liabilities                      |            | 6.046.370                  | 7.268.551   |            | 92.110.148                     | 93.741.924  |  |
| Current liabilities                          |            | 46.457.397                 | 49.176.116  |            | 77.769.502                     | 91.377.845  |  |
| Equity                                       |            | 32.196.192                 | 27.649.244  |            | 23.063.439                     | 20.928.226  |  |
|                                              |            |                            |             |            |                                |             |  |
| Equity without non-controlling interests     |            | 32.196.191                 | 27.649.244  |            | 23.063.439                     | 20.928.226  |  |
|                                              |            |                            |             |            |                                |             |  |
| Sales and services rendered                  |            | 28.320.485                 | 51.163.531  |            | 49.635.148                     | 98.908.826  |  |
| Operating result                             |            | (4.922.938)                | (7.958.329) |            | 4.922.860                      | 9.419.552   |  |
| Financial result                             |            | (602.584)                  | (1.036.922) |            | (1.463.920)                    | (3.141.025) |  |
| Income tax                                   |            | 337.103                    | 1.757.691   |            | (1.050.377)                    | (1.798.373) |  |
| Net income                                   |            | (5.304.636)                | (7.548.440) |            | 2.408.563                      | 4.480.154   |  |
| Net income without non-controlling interests |            | (5.304.636)                | (7.548.440) |            | 2.408.563                      | 4.480.154   |  |

Movements occurred during the period

During the six-month period ended June 30, 2022, and the year ended December 31, 2021, the movements in the heading of financial investments in associates and joint ventures is detailed as follows:

|                                                                     | 30/06/2022  | 31/12/2021  |
|---------------------------------------------------------------------|-------------|-------------|
| Financial holdings - Associates                                     |             |             |
| Balance on January 1                                                | 23.699.123  | 22.785.000  |
| Effect of applying the equity method to the net income for the year | 518.190     | 871.265     |
| Other regularizations                                               | (133.942)   | 42.858      |
| Balance on December 31                                              | 24.083.371  | 23.699.123  |
|                                                                     |             |             |
| Financial holdings – Joint ventures                                 |             |             |
| Balance on January 1                                                | 20.295.498  | 16.320.000  |
| Capital increase                                                    | 6.193.548   | 9.290.322   |
| Effect of applying the equity method to the net income for the year | (3.794.371) | (5.599.875) |
| Exchange translation differences in the financial statements        | (91.922)    | 285.051     |
| Balance on December 31                                              | 22.602.753  | 20.295.498  |
| Total                                                               | 46.686.124  | 43.994.621  |

<sup>10</sup> CaetanoBus – Fabricação de Carroçarias, S.A. owns a Joint Venture in Germany (Cobus Industries, GmbH), and a subsidiary in the United Kingdom (Caetano UK, Ltd).

<sup>11</sup> Kinto Portugal, S.A. has an associate in Senegal (Caetano Renting Senegal, S.A.).

# 11. OTHER INVESTMENTS

As of June 30, 2022, December 31, 2021 and June 30, 2021, the item "Other Investments" is detailed as follows:

| Investment                                          | 30/06/2022 | 31/12/2021 | 30/06/2021 |
|-----------------------------------------------------|------------|------------|------------|
| Cimóvel - Fundo de Investimento Imobiliário Fechado | 4.641.544  | 4.474.657  | 4.341.960  |
| Others                                              | 138.078    | 131.368    | 26.833     |
|                                                     | 4.779.622  | 4.606.025  | 4.368.793  |

During the periods ended on June 30, 2022, December 31, 2021 and June 30, 2021, the movements that occurred under the heading "Other investments" were as follows:

|                                   | 30/06/2022 | 31/12/2021 | 30/06/2021 |
|-----------------------------------|------------|------------|------------|
| Other investments                 |            |            |            |
| Fair value on January 1           | 4.606.025  | 4.219.437  | 4.219.437  |
| Acquisitions during the year      | 6.710      | 104.535    | -          |
| Increase/(decrease) in fair value | 166.887    | 282.053    | 149.356    |
| Fair value on the reference date  | 4.779.622  | 4.606.025  | 4.368.793  |

As at 30 June 2022, the item "Other Investments" includes the amount of 4.641.544 Euros (31 December 2021: 4.474.657 Euros) corresponding to 580.476 Investment Units in the Cimóvel - Fundo de Investimento Imobiliário Fechado (9,098%) being recorded at the value of the Participation Unit disclosed on June 30, 2022 (the acquisition cost of the aforementioned shares amounted to 3.013.947 Euros, with a capital reserve (Fair Value Reserve) in the amount of 1.627.597 Euros.

This investment, measured at fair value by other comprehensive income, was designated as such on the date of its recognition.

The remaining amount represents small-scale investments in unlisted companies, and the Board of Directors believes that the net value at which they are accounted for is close to their fair value.

Additionally, the effect on equity in the six-month periods ended 30 June 2022 and 2021 of the registration of the investment in Fundo Cimóvel at its fair value can be summarized as follows:

|                         | 30/06/2022 | 30/06/2021 |
|-------------------------|------------|------------|
| Variation in fair value | 166.887    | 149.356    |
| Effect on equity        | 166.887    | 149.356    |

# 12. INVENTORY

As of June 30, 2022, December 31, 2021 and June 30, 2021, this item was made up as follows:

|                                                        | 30/06/2022  | 31/12/2021  | 30/06/2021  |
|--------------------------------------------------------|-------------|-------------|-------------|
| Raw Materials, Subsidiaries and Consumables            | 5.484.126   | 13.775.081  | 6.166.189   |
| Products and Work in Progress                          | 2.714.521   | 765.005     | 1.597.503   |
| Finished and Intermediate Products                     | 10.633.538  | 2.687.059   | 1.682.611   |
| Goods                                                  | 67.901.172  | 71.414.389  | 75.149.764  |
|                                                        | 86.733.357  | 88.641.534  | 84.596.067  |
| Impairment losses accumulated in inventories (Note 25) | (2.825.460) | (1.839.613) | (3.875.346) |
|                                                        | 83.907.897  | 86.801.921  | 80.720.721  |

The Group has defined impairment criteria for used vehicles that assume a devaluation in relation to their age. The criteria followed by the Group are supported by market information obtained from external entities as of 30 June (the Board of Directors is convinced that such information already reflects the impacts of the pandemic and the crisis in the supply of chips / components). Therefore, the Board of Directors does not expect that in future years losses will be generated in the process of disposal and realization of said used vehicles.

The cost of sales for the six-month periods ended June 30, 2022 and 2021 was determined as follows:

|                               | 30/06/2022   |                                                   |              | 30/06/2021   |                                                   |              |  |
|-------------------------------|--------------|---------------------------------------------------|--------------|--------------|---------------------------------------------------|--------------|--|
|                               | Goods        | Raw materials,<br>subsidiaries and<br>consumables | Total        | Goods        | Raw materials,<br>subsidiaries and<br>consumables | Total        |  |
| Initial Balance               | 71.414.389   | 13.775.081                                        | 85.189.470   | 70.741.590   | 7.359.274                                         | 78.100.864   |  |
| Net Purchases                 | 162.160.456  | 22.993.377                                        | 185.153.833  | 113.816.475  | 17.816.473                                        | 131.632.948  |  |
| Transfers from/to Inventories | (15.208.410) | -                                                 | (15.208.410) | 9.280.202    | -                                                 | 9.280.202    |  |
| Regularization of inventories | 1.450.501    | -                                                 | 1.450.501    | 1.606.281    | -                                                 | 1.606.281    |  |
| Final Balance                 | (67.901.172) | (5.484.126)                                       | (73.385.298) | (75.149.764) | (6.166.189)                                       | (81.315.953) |  |
| Total                         | 151.915.764  | 31.284.332                                        | 183.200.096  | 120.294.784  | 19.009.558                                        | 139.304.342  |  |

The variation in production in the six-month periods ended June 30, 2022 and 2021 was determined as follows:

|                          | 30/06/2022                               |                                     |             | 30/06/2021                               |                                     |             |  |
|--------------------------|------------------------------------------|-------------------------------------|-------------|------------------------------------------|-------------------------------------|-------------|--|
|                          | Finished and<br>intermediate<br>products | Products and<br>work in<br>progress | Total       | Finished and<br>intermediate<br>products | Products<br>and work in<br>progress | Total       |  |
| Final Balance            | 10.633.538                               | 2.714.521                           | 13.348.059  | 1.682.611                                | 1.597.503                           | 3.280.114   |  |
| Regularization of stocks | (111.366)                                | 45.895                              | (65.471)    | (7.473)                                  | 5.918                               | (1.555)     |  |
| Initial Balance          | (2.687.059)                              | (765.005)                           | (3.452.064) | (2.106.622)                              | (1.386.890)                         | (3.493.512) |  |
| Total                    | 7.835.113                                | 1.995.411                           | 9.830.524   | (431.484)                                | 216.531                             | (214.953)   |  |

# 13. ACCOUNTS RECEIVABLE

As of June 30, 2022, December 31, 2021 and June 30, 2021, this item was made up as follows:

|                                                                   | CURRENT ASSETS |             |              | NON-CURRENT ASSETS |            |            |  |
|-------------------------------------------------------------------|----------------|-------------|--------------|--------------------|------------|------------|--|
|                                                                   | 30/06/2022     | 31/12/2021  | 30/06/2021   | 30/06/2022         | 31/12/2021 | 30/06/2021 |  |
| Accounts receivable, current accounts                             | 56.753.204     | 53.783.729  | 52.978.743   | 646.625            | 766.236    | 392.719    |  |
| Doubtful accounts                                                 | 9.397.336      | 9.898.488   | 11.177.030   | -                  | -          | -          |  |
|                                                                   | 66.150.540     | 63.682.217  | 64.155.773   | 646.625            | 766.236    | 392.719    |  |
| Accumulated impairment losses in accounts receivable<br>(Note 25) | (9.475.882)    | (9.977.302) | (11.015.629) | -                  | -          | -          |  |
|                                                                   | 56.674.658     | 53.704.915  | 53.140.144   | 646.625            | 766.236    | 392.719    |  |

Regarding the application of the Expected Credit Losses model recommended in IFRS 9, the Group applied in the analysis carried out the simplified approach of recognizing expected credit losses in the economic life of accounts receivable, taking into account that they do not have a significant financing component.

The amounts presented in the consolidated statement of financial position are net of accumulated impairment losses for doubtful accounts that were estimated by the Group, in accordance with its experience and based on its assessment of the economic situation and environment at the date of the consolidated statement of financial position. Therefore, the Board of Directors believes that the book values of accounts receivable from customers are close to their fair value.

# 14. OTHER DEBTORS

As of June 30, 2022, December 31, 2021 and June 30, 2021, this item was made up as follows:

|                                       | CURRENT ASSETS |            |           |  |  |
|---------------------------------------|----------------|------------|-----------|--|--|
|                                       | 30/06/2022     | 30/06/2021 |           |  |  |
| Advances to suppliers                 | 223.034        | 59.135     | 43.770    |  |  |
| State and other public entities (VAT) | -              | 149.751    | 2.839.340 |  |  |
| Other debtors                         | 1.099.308      | 819.992    | 2.412.302 |  |  |
|                                       | 1.322.342      | 1.028.878  | 5.295.412 |  |  |

It should be noted that this item also includes a balance receivable in the amount of 45.122 Euros from the related party Fundação Salvador Caetano (13.822 Euros as at 31 December 2021).

# 15. OTHER CURRENT ASSETS

As of June 30, 2022, December 31, 2021 and June 30, 2021, this item was made up as follows:

|                                                                           | 30/06/2022 | 31/12/2021 | 30/06/2021 |
|---------------------------------------------------------------------------|------------|------------|------------|
| Debtors for income accruals                                               |            |            |            |
| Fleets, Campaigns, Bonuses, Rappel and co-payments receivable from brands | 628.043    | 1.933.690  | 761.823    |
| Recovery support ("Covid-19" exploration subsidies)                       | -          | -          | 1.071.980  |
| Training subsidies (IEFP)                                                 | -          | 494.897    | -          |
| Intermediation fees (financing and insurance)                             | 455.828    | 357.495    | 303.672    |
| Rents                                                                     | -          | 140.575    | -          |
| Consulting                                                                | -          | 98.148     | 88.570     |
| Warranty Claims                                                           | 92.257     | 98.107     | 124.717    |
| Others                                                                    | 824.585    | 226.799    | 483.307    |
|                                                                           | 2.000.713  | 3.349.711  | 2.834.069  |
| Expenses to recognize                                                     |            |            |            |
| Insurance                                                                 | 107.365    | 141.934    | 57.426     |
| Rents                                                                     | 125.800    | 51.733     | 17.259     |
| Charges with commercial paper                                             | 246.386    | 256.654    | 272.674    |
| Others                                                                    | 412.851    | 330.622    | 1.085.014  |
|                                                                           | 892.402    | 780.943    | 1.432.373  |
| Total                                                                     | 2.893.115  | 4.130.654  | 4.266.442  |

The heading "Fleets, Campaigns, Bonuses, Rappel and co-payments receivable from brands" corresponds to amounts receivable from performance awards and achievement of goals granted by the Toyota and Lexus brands, as well as support for campaigns developed by them.

#### 16. DEFERRED TAX ASSETS AND LIABILITIES

The detail and movement of amounts and nature of deferred tax assets and liabilities recorded in the attached consolidated financial statements as at 30 June 2022 and 31 December 2021 can be summarized as follows:

| 30/06/2022                                                                           |             |                   |                  |             |
|--------------------------------------------------------------------------------------|-------------|-------------------|------------------|-------------|
|                                                                                      | 31/12/2021  | Impact on Results | Impact on Equity | 30/06/2022  |
| Deferred tax assets:                                                                 |             |                   |                  |             |
| Impairment losses and provisions constituted and not accepted as tax costs           | 858.385     | (3.483)           | -                | 854.902     |
| Responsibilities for defined benefit plans                                           | 1.620.998   | -                 | -                | 1.620.998   |
| Annulment of tangible fixed assets/inventories                                       | 894.536     | (139.168)         | 266.342          | 1.021.710   |
| Others - Revenue from operations                                                     | 154.816     | 78.261            | -                | 233.077     |
|                                                                                      | 3.528.735   | (64.390)          | 266.342          | 3.730.687   |
| Deferred tax liabilities:                                                            |             |                   |                  |             |
| Amortizations resulting from legal and free revaluations                             | (1.491.019) | -                 | -                | (1.491.019) |
| Effect of the reinvestment of capital gains generated with disposals of fixed assets | (53.966)    | -                 | -                | (53.966)    |
| Imputation of the fair value of other financial assets                               | (328.662)   | -                 | (37.550)         | (366.212)   |
|                                                                                      | (1.873.647) | -                 | (37.550)         | (1.911.197) |
| Net effect (Note 26)                                                                 |             | (64.390)          | 228.792          |             |

| 31/12/2021                                                                           |             |                  |                   |                  |             |
|--------------------------------------------------------------------------------------|-------------|------------------|-------------------|------------------|-------------|
|                                                                                      | 31/12/2020  | Other Variations | Impact on Results | Impact on Equity | 31/12/2021  |
| Deferred tax assets:                                                                 |             |                  |                   |                  |             |
| Impairment losses and provisions constituted and not accepted as tax costs           | 278.676     | -                | 579.709           | -                | 858.385     |
| Responsibilities for defined benefit plans                                           | 2.225.687   | -                | (285.473)         | (319.216)        | 1.620.998   |
| Annulment of tangible fixed assets/inventories                                       | 578.453     | -                | 387.103           | (71.020)         | 894.536     |
| Others - Revenue from operations                                                     | 65.867      | -                | 88.949            |                  | 154.816     |
|                                                                                      | 3.148.683   | -                | 770.288           | (390.236)        | 3.528.735   |
| Deferred tax liabilities:                                                            |             |                  |                   |                  |             |
| Amortizations resulting from legal and free revaluations                             | (1.514.350) | 3.547            | 19.784            | -                | (1.491.019) |
| Effect of the reinvestment of capital gains generated with disposals of fixed assets | (60.248)    | (3.547)          | 9.829             | -                | (53.966)    |
| Imputation of the fair value of other financial assets                               | (265.200)   | -                | (63.462)          | -                | (328.662)   |
|                                                                                      | (1.839.798) | -                | (33.849)          | -                | (1.873.647) |
|                                                                                      |             |                  |                   |                  |             |
| Net effect (Note 26)                                                                 |             | -                | 736.439           | (390.236)        |             |

As at 30 June 2022 and 31 December 2021, the Group companies did not have reportable tax losses.

As at 30 June 2022 and 31 December 2021, the tax rates used to calculate deferred tax assets and liabilities were as follows:

|                                      | Tax rate   |            |  |
|--------------------------------------|------------|------------|--|
|                                      | 30/06/2022 | 31/12/2021 |  |
| Country of origin of the subsidiary: |            |            |  |
| Portugal                             | 22,5%- 21% | 22,5%-21%  |  |
| Cape Verde                           | 25%        | 25,5%      |  |

# 17. EQUITY

# Share Capital

As at 30 June 2022, the share capital of the Parent Company, fully subscribed and paid up, comprises 35.000.000 registered shares, fully subscribed and paid up, with a nominal value of 1 Euro each.

The identification of legal persons with more than 20% of the subscribed capital is as follows:

| - Salvador Caetano - Auto S.G.P.S., S.A. | 69,80% |
|------------------------------------------|--------|
| - Toyota Motor Europe NV/SA              | 27,00% |

In 2022, Salvador Caetano - Auto S.G.P.S., S.A. acquired 989 shares with a nominal value of 1 Euro each, fully paid up and representing 0,00283% of the share capital.

#### Dividends

At the Ordinary General Meeting held on 31 May 2022, the distribution of dividends to be allocated to the capital of €0,20 per share, in the amount of €7 million, was approved by the shareholders.

At the Extraordinary General Meeting held on 30 November 2021, the shareholders approved the distribution of dividends in the amount of 10.5 million Euros, by applying the amounts recorded under the heading "Retained earnings".

#### Legal Reserve

In accordance with current commercial legislation, at least 5% of the annual net income, if positive, must be allocated to the reinforcement of the legal reserve, until it represents 20% of the Company's capital. This reserve is not distributable, except in the event of liquidation of the Company, but it can be used to absorb losses after the other reserves are exhausted or incorporated in the capital.

#### Fair Value Reserves

Fair value reserves reflect changes in the fair value of equity instruments at fair value through equity and cannot be distributed or used to absorb losses (Note 11).

#### Other reserves and Retained earnings

Under Portuguese legislation, the amount of distributable reserves is determined in accordance with the individual financial statements of Toyota Caetano Portugal, S.A., presented in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union.

### 18. NON-CONTROLLING INTERESTS

The movement of this item during the periods ended on June 30, 2022, December 31, 2021 and June 30, 2021 was as follows:

|                                                                 | 1.411.465  | 1.329.406  | 1.285.999  |
|-----------------------------------------------------------------|------------|------------|------------|
| Income for the period attributable to non-controlling interests | 90.879     | 131.134    | (8.235)    |
| Others                                                          | (8.820)    | -          | 9.560      |
| Acquisition of non-controlling interests                        | -          | (86.832)   | -          |
| Perimeter entry - Destaque Mourisco                             | -          | 430        | -          |
| Initial balance on January 1                                    | 1.329.406  | 1.284.674  | 1.284.674  |
|                                                                 | 30/06/2022 | 31/12/2021 | 30/06/2021 |

The breakdown of the value by subsidiary company fully consolidated in the Financial Statements presented on June 30, 2022 and December 31, 2021 is as follows:

|                          | 30/06/2022 |                              |                                                      |
|--------------------------|------------|------------------------------|------------------------------------------------------|
| Subsidiary               | % IQNC     | Non-controlling<br>Interests | Income of the period of non<br>controlling interests |
| Caetano Auto CV          | 18,76%     | 777.829                      | 56.441                                               |
| Caetano Auto             | 1,26%      | 634.362                      | 35.534                                               |
| Destaque Mourisco        | 43,72%     | (721)                        | (1.091)                                              |
| Salvador Caetano Seguros | 1,26%      | (5)                          | (5)                                                  |
|                          |            | 1.411.465                    | 90.879                                               |

|                   | 31/12/2021 |                              |                                                      |
|-------------------|------------|------------------------------|------------------------------------------------------|
| Subsidiary        | % IQNC     | Non-controlling<br>Interests | Income of the period of non<br>controlling interests |
| Caetano Auto CV   | 18,76%     | 731.836                      | 75.643                                               |
| Caetano Auto      | 1,26%      | 597.201                      | 55.551                                               |
| Destaque Mourisco | 43,72%     | 369                          | (60)                                                 |
|                   |            | 1.329.406                    | 131.134                                              |

The summary of the financial information as at 30 June 2022 and 31 December 2021 of the subsidiary companies listed above is shown in the table below:

|                             |             | Caetano Auto | Caetano Auto CV |            | Destaque Mourisco |                       | Salvador<br>Caetano<br>Seguros |  |
|-----------------------------|-------------|--------------|-----------------|------------|-------------------|-----------------------|--------------------------------|--|
| Item                        | 30/06/2022  | 31/12/2021   | 30/06/2022      | 31/12/2021 |                   | 30/06/2022 31/12/2021 | 30/06/2022                     |  |
| Non-current Assets          | 52.259.230  | 52.534.776   | 1.184.278       | 1.235.518  | -                 | -                     | -                              |  |
| Current Assets              | 54.354.471  | 61.030.895   | 6.790.600       | 6.851.947  | 757               | 861                   | 5.000                          |  |
| Total Assets                | 106.613.701 | 113.565.671  | 7.974.878       | 8.087.465  | 757               | 861                   | 5.000                          |  |
| Non-current Liabilities     | 8.623.613   | 9.523.420    | 1.439.437       | 1.439.437  | -                 | -                     | -                              |  |
| Current Liabilities         | 49.003.992  | 57.957.899   | 2.365.395       | 2.700.514  | 2.391             | -                     | 360                            |  |
| Equity                      | 48.986.096  | 46.084.352   | 4.170.045       | 3.947.514  | (1.634)           | 861                   | 4.640                          |  |
|                             |             |              |                 |            |                   |                       |                                |  |
| Sales and services rendered | 120.044.340 | 211.630.931  | 7.909.780       | 14.409.965 | -                 | -                     | -                              |  |
| Operating Result            | 3.947.919   | 5.473.784    | 336.904         | 412.776    | (2.495)           | (139)                 | (360)                          |  |
| Financial Result            | (28.775)    | (288.113)    | 5.752           | (9.906)    | -                 | -                     | -                              |  |
| Income Tax                  | (1.017.400) | (767.930)    | (64.436)        | (29.173)   | -                 | -                     | -                              |  |
| Net Income                  | 2.901.744   | 4.417.741    | 278.220         | 373.697    | (2.495)           | (139)                 | (360)                          |  |

# 19. LOANS

As of June 30, 2022, December 31, 2021 and June 30, 2021, the item "Loans" has the following detail:

|                   | 30/06/2022 |                | 31/12/2021 |            |                | 30/06/2022 |                       |                |            |
|-------------------|------------|----------------|------------|------------|----------------|------------|-----------------------|----------------|------------|
|                   | Current    | Non<br>current | TOTAL      | Current    | Non<br>current | TOTAL      | Current               | Non<br>current | TOTAL      |
| Bank Loans        | 15.208.899 | -              | 15.208.899 | 15.280.530 | -              |            | 15.280.530 15.351.100 | -              | 15.351.100 |
| Bank Overdrafts   | 8.332      | -              | 8.332      | 8.203      | -              | 8.203      | 898.602               | -              | 898.602    |
| Bond Loans        | -          | 12.500.000     | 12.500.000 | -          | 12.500.000     | 12.500.000 | -                     | 12.500.000     | 12.500.000 |
| Lease Liabilities | 5.920.340  | 11.674.819     | 17.595.159 | 6.991.502  | 12.875.771     | 19.867.273 | 6.952.682             | 12.921.919     | 19.874.601 |
|                   | 21.137.571 | 24.174.819     | 45.312.390 | 22.280.235 | 25.375.771     |            | 47.656.006 23.202.384 | 25.421.919     | 48.624.303 |

As at 30 June 2022 and 31 December 2021, the details of bank loans, bank overdrafts, Commercial Paper programs and bond loans, as well as their respective conditions, are as follows:

| 30/06/2022                             |             |            |            |              |  |  |  |  |
|----------------------------------------|-------------|------------|------------|--------------|--|--|--|--|
| Description / Beneficiary company      | Used amount | Limit      | Start date | Deadline     |  |  |  |  |
| Non-current                            |             |            |            |              |  |  |  |  |
| Bond loan                              |             |            |            |              |  |  |  |  |
| Toyota Caetano Portugal                | 12.500.000  | 12.500.000 | 09/08/2018 | 5 years      |  |  |  |  |
|                                        | 12.500.000  | 12.500.000 |            |              |  |  |  |  |
| Current                                |             |            |            |              |  |  |  |  |
| Guaranteed checking accounts           |             |            |            |              |  |  |  |  |
| Toyota Caetano Portugal                | 15.000.000  | 20.000.000 | 03/12/2021 | 1 year       |  |  |  |  |
| Toyota Caetano Portugal                | -           | 2.000.000  | 27/11/2011 | 3 months (*) |  |  |  |  |
| Loan Covid line                        |             |            |            |              |  |  |  |  |
| Caetano Auto CV                        | 208.899     | 208.899    |            |              |  |  |  |  |
| Bank overdrafts                        | 8.332       | 5.500.000  |            |              |  |  |  |  |
| Invoices discounted under "Confirming" | -           | 4.500.000  |            |              |  |  |  |  |
| Commercial paper:                      |             |            |            |              |  |  |  |  |
| Toyota Caetano Portugal                | -           | 18.000.000 | 27/02/2021 | 5 years      |  |  |  |  |
| Toyota Caetano Portugal                | -           | 10.000.000 | 18/08/2020 | 5 years      |  |  |  |  |
| Toyota Caetano Portugal                | -           | 4.000.000  | 17/07/2017 | 5 years      |  |  |  |  |
| Toyota Caetano Portugal                | -           | 4.000.000  | 24/02/2021 | 1 year       |  |  |  |  |
| Toyota Caetano Portugal                | -           | 13.000.000 | 14/06/2021 | 5 years      |  |  |  |  |
|                                        | 15.217.231  | 81.208.899 |            |              |  |  |  |  |
|                                        | 27.717.231  | 93.708.899 |            |              |  |  |  |  |

| 31/12/2021                             |             |            |            |              |  |  |  |
|----------------------------------------|-------------|------------|------------|--------------|--|--|--|
| Description / Beneficiary company      | Used amount | Limit      | Start date | Deadline     |  |  |  |
| Non-current                            |             |            |            |              |  |  |  |
| Bond loan                              |             |            |            |              |  |  |  |
| Toyota Caetano Portugal                | 12.500.000  | 12.500.000 | 09/08/2018 | 5 years      |  |  |  |
|                                        | 12.500.000  | 12.500.000 |            |              |  |  |  |
| Current                                |             |            |            |              |  |  |  |
| Guaranteed checking accounts           |             |            |            |              |  |  |  |
| Toyota Caetano Portugal                | 15.000.000  | 20.000.000 | 03/12/2021 | 1 year       |  |  |  |
| Toyota Caetano Portugal                | -           | 2.000.000  | 27/11/2021 | 3 months (*) |  |  |  |
| Loan Covid line                        |             |            |            |              |  |  |  |
| Caetano Auto CV                        | 280.530     | 280.530    |            |              |  |  |  |
| Bank overdrafts                        | 8.203       | 5.500.000  |            |              |  |  |  |
| Invoices discounted under "Confirming" | -           | 4.500.000  |            |              |  |  |  |
| Commercial paper:                      |             |            |            |              |  |  |  |
| Toyota Caetano Portugal                | -           | 19.000.000 | 27/02/2021 | 5 years      |  |  |  |
| Toyota Caetano Portugal                | -           | 10.000.000 | 18/08/2020 | 5 years      |  |  |  |
| Toyota Caetano Portugal                | -           | 4.000.000  | 17/07/2017 | 5 years      |  |  |  |
| Toyota Caetano Portugal                | -           | 4.000.000  | 24/02/2021 | 1 year       |  |  |  |
| Toyota Caetano Portugal                | -           | 15.000.000 | 14/06/2021 | 5 years      |  |  |  |
|                                        | 15.288.733  | 84.280.530 |            |              |  |  |  |
|                                        | 27.788.733  | 96.780.530 |            |              |  |  |  |

(\*) renewable quarterly

Below, we detail the amount related to financing obtained or lines of credit contracted for which real guarantees related to mortgages on real estate were granted (Note 35):

- Commercial paper: 18.000.000 Euros;
- Loan Covid line: 208.899 Euros

The Group and its subsidiaries have contracted lines of credit as at 30 June 2022 in the amount of approximately 94 million euros (of which around 28 million euros were used on 30 June 2022) that can be used to future operational activities and to meet financial commitments, with no restrictions on the use of these facilities. This amount is invested in several financial institutions and there is no excessive concentration in any of them.

The item Lease liabilities (current and non-current) corresponds to the Group's responsibilities, as lessee, related to the rights of use related to cargo handling equipment and leased properties to carry out a reduced part of its operations, since most of the Group's operating activity is carried out on its own properties. In view of the lease agreements established by the Group, the current market conditions associated with the Covid-19 coronavirus pandemic did not have relevant impacts on them, namely support from lessors/landlords.

#### Responsibilities by maturity ranges:

#### Loans

| 30/06/2022        |            |            |           |           |           |            |  |
|-------------------|------------|------------|-----------|-----------|-----------|------------|--|
|                   | 12m        | 12-24m     | 24-36m    | 36-48m    | >48m      | Total      |  |
| Bank loans        | 15.208.899 | -          | -         | -         | -         | 15.208.899 |  |
| Bond loans        | -          | 12.500.000 | -         | -         | -         | 12.500.000 |  |
| Bank overdrafts   | 8.332      | -          | -         | -         | -         | 8.332      |  |
| Lease liabilities | 5.920.340  | 4.665.948  | 3.353.806 | 1.752.583 | 1.902.482 | 17.595.159 |  |
| Total Loans       | 21.137.571 | 17.165.948 | 3.353.806 | 1.752.583 | 1.902.482 | 45.312.390 |  |

| 31/12/2021        |            |            |           |           |           |            |
|-------------------|------------|------------|-----------|-----------|-----------|------------|
|                   | 12m        | 12-24m     | 24-36m    | 36-48m    | >48m      | Total      |
| Bank loans        | 15.280.530 | -          | -         | -         | -         | 15.280.530 |
| Bond loans        | -          | 12.500.000 | -         | -         | -         | 12.500.000 |
| Bank overdrafts   | 8.203      | -          | -         | -         | -         | 8.203      |
| Lease liabilities | 6.991.502  | 4.947.880  | 3.999.009 | 2.153.922 | 1.774.960 | 19.867.273 |
| Total Loans       | 22.280.235 | 17.447.880 | 3.999.009 | 2.153.922 | 1.774.960 | 47.656.006 |

#### Interest

| 30/06/2022        |         |         |         |        |        |           |
|-------------------|---------|---------|---------|--------|--------|-----------|
|                   | 12m     | 12-24m  | 24-36m  | 36-48m | >48m   | Total     |
| Bank loans        | -       | -       | -       | -      | -      | -         |
| Lease liabilities | 393.734 | 257.333 | 142.116 | 73.907 | 49.654 | 916.744   |
| Bond loans        | 249.670 | 123.809 | -       | -      | -      | 373.479   |
| Total interest    | 643.404 | 381.142 | 142.116 | 73.907 | 49.654 | 1.290.223 |

| 31/12/2021        |         |         |         |        |        |           |
|-------------------|---------|---------|---------|--------|--------|-----------|
|                   | 12m     | 12-24m  | 24-36m  | 36-48m | >48m   | Total     |
| Bank loans        | 97.656  | -       | -       | -      | -      | 97.656    |
| Lease liabilities | 414.532 | 291.748 | 160.781 | 76.716 | 42.024 | 985.801   |
| Bond loans        | 249.670 | 249.670 | -       | -      | -      | 499.340   |
| Total interest    | 761.858 | 541.418 | 160.781 | 76.716 | 42.024 | 1.582.797 |

# 20. ACCOUNTS PAYABLE

As at June 30, 2022, December 31, 2021 and June 30, 2021, this item consisted of current balances payable to suppliers, which are fully due in the short term.

The Group, within the scope of financial risk management, has implemented policies to ensure that all liabilities will be settled within the defined payment terms.

# 21. OTHER CREDITORS

As of June 30, 2022, December 31, 2021 and June 30, 2021, this item was made up as follows:

|                                            | CURRENT LIABILITIES |            |            | NON-CURRENT LIABILITIES |           |                       |
|--------------------------------------------|---------------------|------------|------------|-------------------------|-----------|-----------------------|
|                                            | 30/06/2022          | 31/12/2021 | 30/06/2021 | 30/06/2022              |           | 31/12/2021 30/06/2021 |
| Withholding of Income Taxes                | 487.126             | 436.836    | 419.308    | -                       | -         | -                     |
| Value-added tax (IVA)                      | 13.173.176          | 14.697.609 | 15.398.314 | -                       | -         | -                     |
| Vehicle taxes                              | 2.018.565           | 2.378.890  | 3.398.412  | -                       | -         | -                     |
| Contributions to Social Security           | 885.857             | 740.956    | 820.278    | -                       | -         | -                     |
| Local authority taxes                      | 195.598             | 167.679    | 192.625    | -                       | -         | -                     |
| Others                                     | 6.375               | 6.257      | 8.690      | -                       | -         | -                     |
| State and other public entities - Subtotal | 16.766.697          | 18.428.227 | 20.237.627 | -                       | -         | -                     |
|                                            |                     |            |            |                         |           |                       |
| Shareholders                               | 35.773              | 24.954     | 17.021     | -                       | -         | -                     |
| Advances from Customers                    | 2.620.706           | 2.446.886  | 1.289.749  | -                       | -         | -                     |
| Other creditors                            | 46.872.892          | 33.787.564 | 20.271.129 | 4.760.680               | 2.275.204 | 13.305.891            |
| Other creditors - Subtotal                 | 49.529.371          | 36.259.404 | 21.577.899 | 4.760.680               | 2.275.204 | 13.305.891            |
|                                            | 66.296.068          | 54.687.631 | 41.815.526 | 4.760.680               | 2.275.204 | 13.305.891            |

In certain situations, the Group is resorting to the financial entity of the car brands represented and marketed, namely the entity Toyota Kreditbank, GMBH - Branch in Portugal, for the purpose of acquiring vehicles necessary for the levels of activity developed. The amounts owed to this entity are included in the item "Other creditors" and amount to 50.532.970 Euros as at 30 June 2022 (35.280.155 Euros as at 31 December 2021).

It is the understanding of the Board of Directors that the accounts payable to Toyota Kreditbank, GMBH – Branch in Portugal for the purpose of acquiring vehicles, have specific characteristics that justify a separate presentation of the financing obtained and from suppliers. In fact, the Group finances the acquisition of new vehicles (for exhibition) and registered vehicles (destined for demonstration, courtesy and rental) through the financial entity of the Toyota Japan Group, Toyota Kreditbank, GMBH – Branch in Portugal, and these agreements with this entity determine that the settlement of the liability must be carried out on the most recent of the following dates: the maturity date of the agreement or the date of sale of the vehicle. This is a relevant, specific and unique characteristic of this type of liabilities, a fact that was taken into account by the Board of Directors in the process of evaluating the classification of this financial liability. In the aforementioned assessment, the Board of Directors also considered it to be a sector practice not to present this type of liabilities as obtained financing, when it is specifically associated with the acquisition of vehicles.

The amounts outstanding with Toyota Kreditbank, GMBH – Branch in Portugal as at 30 June 2022 and 31 December 2021 refer to loans with maturities of less than 640 days, interest rates between 1,45% and 2%, being that the companies of the Toyota Caetano Portugal Group guarantee the same through the delivery of a blank promissory note with the respective filling agreement.

There are no outstanding debts to the State and Social Security.

# 22. INCOME TAX (STATEMENT OF FINANCIAL POSITION)

The breakdown of the Income tax heading at 30 June 2022, 31 December 2021 and 30 June 2021 is as follows:

|                      | 30/06/2022 | 31/12/2021 | 30/06/2021 |
|----------------------|------------|------------|------------|
| Credit balances      |            |            |            |
| Corporate Income Tax |            |            |            |
| Income tax payable   | 2.842.396  | 4.307.955  | 136.739    |
|                      | 2.842.396  | 4.307.955  | 136.739    |

# 23. OTHER CURRENT LIABILITIES

As of June 30, 2022, December 31, 2021 and June 30, 2021 the item "Other current liabilities" can be detailed as follows:

|                                                          | 30/06/2022 | 31/12/2021 | 30/06/2021 |
|----------------------------------------------------------|------------|------------|------------|
| Accrued costs                                            |            |            |            |
| Charges for vacations and vacation allowances            | 8.518.427  | 6.148.853  | 7.798.035  |
| Advertising campaigns and sales promotion                | 602.834    | 746.823    | 1.274.766  |
| Commissions to be paid                                   | 396.367    | 217.178    | 598.816    |
| Vehicle tax on sold and unregistered vehicles            | 1.180.669  | 1.711.789  | 1.852.552  |
| Charges with external supplies and services to settle    | 1.491.670  | 1.178.933  | 1.193.253  |
| Rappel charges attributable to fleet management entities | 315.640    | 308.099    | 374.020    |
| Specialization of costs allocated to vehicles sold       | 1.999.217  | 1.119.811  | 1.448.810  |
| Insurance to settle                                      | 16.401     | 32.420     | 223.787    |
| Interest payable                                         | 183.117    | 136.539    | 147.708    |
| Property tax                                             | 116.610    | 98.723     | 141.302    |
| Royalties                                                | 135.592    | 104.650    | 123.756    |
| Others                                                   | 2.955.794  | 1.736.527  | 3.098.034  |
|                                                          | 17.912.338 | 13.540.345 | 18.274.839 |
|                                                          |            |            |            |
| Deferred income                                          |            |            |            |
| Vehicle Maintenance / Assistance Contracts               | 6.373.881  | 6.192.449  | 6.398.109  |
| Deferral of revenue                                      | 3.129.348  | 3.556.395  | 43.034     |
| Others                                                   | 98.970     | 245.899    | 1.087.171  |
|                                                          | 9.602.199  | 9.994.743  | 7.528.314  |
| Total                                                    | 27.514.537 | 23.535.088 | 25.803.153 |

As at 30 June 2022 and 31 December 2021, the heading "Vehicle Maintenance / Assistance Contracts" includes the deferred amount related to multi-annual vehicle maintenance contracts already billed and received, for which the associated performance obligation has not yet been fulfilled, which is why the respective revenue is deferred. Said amount is recognized as the performance obligation is fulfilled.

# 24. PENSIONS LIABILITIES

Toyota Caetano Portugal (together with other associates) created by public deed dated December 29, 1988 the Salvador Caetano Pension Fund, subsequently amended on February 2, 1994, on April 30, 1996, on August 9, 1996, on July 4, 2003, on February 2, 2007, on December 30, 2008, on December 23, 2011 and on December 31, 2013.

As of June 30, 2022, the following subsidiaries of the Toyota Caetano Group were members of the Salvador Caetano Pension Fund:

- Toyota Caetano Portugal, S.A.
- Caetano Auto, S.A.
- Caetano Renting, S.A.

This Pension Fund established provided that, while its members maintained the decision to make contributions to the said fund, that the majority of workers could receive, from the date of retirement, a non-updatable supplement, determined based on a percentage of their salary, among other conditions, setting up a defined benefit plan. To cover these liabilities, an Autonomous Fund has been set up (which is managed by BPI Vida e Pensões, S.A.).

On December 18, 2007, a dossier was sent to Instituto de Seguros de Portugal containing the proposed amendments to the Constitutive Agreement of the Salvador Caetano Pension Fund, as well as the minutes of approval by the Fund's Monitoring Committee, proposing, with effect from 1 January 2008, the approval by that body of the same amendments..

The aforementioned proposal, to amend the pension supplements regime duly approved by the Pension Fund Monitoring Committee, includes the maintenance of a Defined Benefit regime for retirees and beneficiaries of deferred pensions, as well as for all employees of the members of the Salvador Caetano Pension Fund who, as of January 1, 2008, had completed 50 years of age and more than 15 years of service in the members of the Salvador Caetano Pension Fund, and a new group was also created (formed by the remaining universe of workers at the service of members of the Salvador Caetano Pension Fund) which, as of that date, was included in a Defined Contribution Plan.

On December 29, 2008, a letter was received containing the approval by the ISP – Instituto de Seguros de Portugal, of the intended changes in force since 01/01/2008.

The ISP determined in the aforementioned approval that employees of Salvador Caetano Pension Fund members who, on January 1, 2008, had reached 15 years of service to the member and were under 50 years of age (and who will become part of a Defined Contribution Plan) were entitled to an individual "initial capital" under the new plan, determined on the basis of the actuarial liabilities calculated with reference to December 31, 2007 and based on the assumptions and criteria used in that year. The assets of the Salvador Caetano Pension Fund were, on that date, allocated to those two Plans according to the rules then established by the ISP, thus maintaining that format until the current date.

Thus, the Salvador Caetano Pension Fund is a single fund and includes two distinct plans: a Defined Benefit plan and a Defined Contribution plan.

The main features of the Salvador Caetano Pension Plan in terms of defined benefits are as follows:

- The pension plan is complementary to the public Social Security regimes, and is independent of the pensions awarded by the Social Security;
- The pension plan predicts the payment of pensions in the event of old-age retirement and disability retirement;
- The pension plan predicts the existence of acquired rights;
- The updating of pensions depends on the decision of the Salvador Caetano Pension Fund members;

- Payment of benefits is made directly by the Pension Fund;
- In terms of eligibility, workers who are at least 50 years of age on December 31, 2017 and who, on that same date, had completed 15 years of service on one of the members of the Salvador Caetano Pension Fund are eligible;
- The normal retirement age corresponds to the age established by the General Social Security System;
- The pensionable salary corresponds to 14/13 of the last salary earned by the worker;
- The old-age and disability retirement pension corresponds to 20% of the monthly pensionable salary;
- These pensions are paid 13 times a year;
- In terms of the minimum solvency level, the value of the Salvador Caetano Pension Fund's assets cannot be less than the minimum solvency amount calculated in accordance with the rules established by the regulatory rule of the Autoridade de Supervisão de Seguros e Fundos de Pensões ("ASF"). The "Minimum Solvency Scenario" is calculated by the responsible actuary (BPI Pensões, S.A.) in accordance with ASF Norm nº 21/96-R, of December 5th.

The Salvador Caetano Pension Fund has currently entered into a management contract with the management entity BPI Vida e Pensões, S.A., with this management entity acting as the "Responsible Actuary". In accordance with the current legislation in force, the management entity must ensure that the assets that make up the Salvador Caetano Pension Fund's assets are adequate for the responsibilities arising from the pension plan, taking into account, in particular:

- The nature of the anticipated benefits;
- The time horizon of the responsibilities;
- The established investment policy and the risks to which the assets are subject; and
- The level of financing of the liabilities.

Therefore, under the management contract established with BPI Vida e Pensões, S.A., the management entity must use the methods or techniques it deems most consistent with the objective of ensuring, with a high level of reasonableness, that unfavourable fluctuations in the value of the assets don't jeopardize the payment of the liabilities assumed, especially those relating to pensions in payment. In this sense, BPI Vida e Pensões, S.A. developed a model to analyse the compatibility between the Pension Fund's assets and liabilities, called the "ALX Model", which aims to determine the appropriate composition of a portfolio of financial assets, matching the nature, risk, duration and profitability of the assets, with the average maturity of the Fund's liabilities, both in terms of pensions in payment and in terms of pensions payable in the future for workers still in active employment. This model does not, however, eliminate the use of more sophisticated and complete ALM (Asset Liability Management) models.

Below is a description of each of the risks in the activity of BPI Vida e Pensões, S.A., as well as the information models used for the respective monitoring:

#### MARKET RISK

The main market risks arise from changes in the prices of securities in the portfolios, arising from investors' perception of intrinsic factors to the issuer or markets, or even geopolitical factors.

The tools used to measure and quantify exposure to market risks are as follows:

VaR – Value at Risk

Value at Risk (VaR) is understood to be the estimated maximum loss expected for a portfolio over a given time horizon with a given confidence level.

The VaR calculation system of BPI Vida e Pensões, S.A. uses the volatilities and historically determined correlations for the different securities and prices in the last 365 days, determining the VaR of each portfolio for a time interval of 30 days and a confidence level of 95%.

The results of the hedging policies, implemented by the managers, are also evaluated and consolidated, namely through the VaR values determined with and without derivatives.

#### Stress scenarios

In order to complement the information provided for each portfolio by the VaR, which is based on historical series, BPI Vida e Pensões, S.A. also assesses the exposure to market risks, analysing the impact on the value and respective future profitability of each portfolio, considering the repetition of past stress scenarios.

These stress scenarios are applied to the key variables, evaluating their individual impact and the joint impact with other variables.

#### CREDIT RISK (portfolio diversification)

The credit risk of each security is evaluated taking into account the credit risk of each issuer and the nature of its debt, as well as the rating notation and the probability of default.

#### LIQUIDITY RISK

To assess liquidity risk, each manager permanently monitors the expected inflows and outflows of the portfolios and maintains levels of liquidity adequate to the expected maturities of liabilities.

#### OPERATIONAL RISK

Operational risk is assessed taking into account the operational loss database of BPI Vida e Pensões, S.A., which provides a record of all events and their respective financial impact.

Additionally, for the six-month period ended June 30, 2022, there was no change, early cancellation or settlement of the Defined Benefit Plan.

The net liability of the Toyota Caetano Portugal Group shown above is covered not only by the assets of the Salvador Caetano Pension Fund allocated to the defined benefit plan, but also through a provision constituted in the amount of approximately 7.105.288 Euros (7.105.288 Euros as at 31 December 2021), reflected in the consolidated statement of financial position under the heading "Liability for defined benefit plans".

# 25. PROVISIONS AND ACCUMULATED IMPAIRMENT LOSSES

The movement in provisions during the six-month periods ended June 30, 2022 and 2021 was as follows:

| 30/06/2022                                                        |           |           |           |              |           |
|-------------------------------------------------------------------|-----------|-----------|-----------|--------------|-----------|
| Initial                                                           |           |           |           |              | Final     |
| Items                                                             | Balances  | Increases | Decreases | Utilizations | Balances  |
| Accumulated impairment losses on investment properties (Note 6)   | 200.000   | -         |           | -            | 200.000   |
| Accumulated impairment losses on non-current assets held for sale | 2.108.969 |           | -         | (778.969)    | 1.330.000 |
| Accumulated impairment losses on accounts receivable (Note 13)    | 9.977.302 | 626.866   | (552.670) | (575.616)    | 9.475.882 |
| Accumulated impairment losses in inventories (Note 12)            | 1.839.613 | 1.006.384 | -         | (20.537)     | 2.825.460 |
| Provisions                                                        | 1.918.478 | 66.424    | -         | (84.183)     | 1.900.719 |

| 30/06/2021                                                      |            |           |           |                  |                 |            |
|-----------------------------------------------------------------|------------|-----------|-----------|------------------|-----------------|------------|
|                                                                 | Initial    | Perimeter | Increases | Utilizations and | Other           | Total      |
| Items                                                           | Balances   | Variation |           | Decreases        | regularizations |            |
| Accumulated impairment losses on tangible fixed assets (Note 5) | 150.000    | -         | -         | -                | -               | 150.000    |
| Accumulated impairment losses on investment properties (Note 6) | 200.000    | -         | -         | -                | -               | 200.000    |
| Accumulated impairment losses on accounts receivable (Note 13)  | 10.420.338 | -         | 595.291   | -                | -               | 11.015.629 |
| Accumulated impairment losses in inventories (Note 12)          | 2.886.212  | -         | 1.036.075 | -                | (46.941)        | 3.875.346  |
| Provisions                                                      | 1.973.126  | -         | 96.815    | (200.000)        | (90.340)        | 1.779.601  |

#### As at 30 June 2022 and 31 December 2021, the detail of the item "Provisions" can be summarized as follows:

| Provisions                              | 30/06/2022 | 31/12/2021 |
|-----------------------------------------|------------|------------|
| Warranties to customers                 | 249.613    | 276.626    |
| Ongoing legal proceedings               | 1.439.438  | 1.439.438  |
| Claims in vehicles without self-damages | 61.668     | 52.414     |
| Other risks and charges                 | 150.000    | 150.000    |
|                                         | 1.900.719  | 1.918.478  |

The caption "Ongoing legal proceedings" essentially considers a provision created in 2020 in the amount of approximately 1.4 million Euros, corresponding to a litigation process involving the subsidiary Caetano Auto CV, S.A. with the Cape Verde customs authority. It is the understanding of the Board of Directors, supported by its legal advisors, that the outcome of this process could result in impacts for the Group, which is why it was decided to recognize a provision for the amount at risk.

# 26. INCOME TAX (CONSOLIDATED INCOME STATEMENT)

Income taxes recognized for the six-month periods ended June 30, 2022 and 2021 are detailed as follows:

|                        | 30/06/2022 | 30/06/2021 |
|------------------------|------------|------------|
| Current tax            | 2.962.623  | 1.451.702  |
| Deferred tax (Note 16) | 64.390     | 57.348     |
|                        | 3.027.013  | 1.509.050  |

# 27. SALES AND SERVICES RENDERED BY GEOGRAPHIC MARKETS

The breakdown of sales and services rendered by geographic markets, in the six-month periods ended June 30, 2022 and 2021, was as follows:

| Activity | 30/06/2022  |         | 30/06/2021  |         |  |
|----------|-------------|---------|-------------|---------|--|
|          | Value       | %       | Value       | %       |  |
| Vehicles | 182.492.758 | 78,69%  | 144.899.443 | 78,01%  |  |
| Parts    | 27.483.699  | 11,85%  | 20.293.502  | 10,92%  |  |
| Repairs  | 21.009.797  | 9,06%   | 19.970.462  | 10,75%  |  |
| Others   | 924.416     | 0,40%   | 592.365     | 0,32%   |  |
|          | 231.910.670 | 100,00% | 185.755.772 | 100,00% |  |

#### 28. EXTERNAL SUPPLIES AND SERVICES

The detail of the External Supplies and Services item for the six-month periods ended June 30, 2022 and 2021 is presented as follows:

|                                     | 30/06/2022 | 30/06/2021 |  |
|-------------------------------------|------------|------------|--|
| Subcontracts                        | 1.390.318  | 907.965    |  |
| Specialized services                | 11.175.026 | 11.174.490 |  |
| Professional services               | 3.767.409  | 2.949.279  |  |
| Advertising and marketing           | 5.180.958  | 6.295.616  |  |
| Vigilance and security              | 263.073    | 256.215    |  |
| Fees                                | 762.072    | 598.633    |  |
| Commissions                         | 275.261    | 79.399     |  |
| Repairs and maintenance             | 926.253    | 995.348    |  |
| Materials                           | 356.857    | 361.490    |  |
| Energy and fluids                   | 1.363.439  | 1.247.599  |  |
| Travel, accommodation and transport | 1.822.018  | 1.123.651  |  |
| Travel and accommodation            | 708.224    | 325.291    |  |
| Personnel transportation            | 58.086     | 55.389     |  |
| Transportation of goods             | 1.055.708  | 742.971    |  |
| Various services                    | 7.297.577  | 6.189.296  |  |
| Short-term and low-value leases     | 695.061    | 721.292    |  |
| Communication                       | 247.242    | 330.330    |  |
| Insurance                           | 848.237    | 712.650    |  |
| Royalties                           | 201.252    | 191.026    |  |
| Litigation and notary               | 22.715     | 13.816     |  |
| Cleaning, hygiene and comfort       | 629.976    | 547.899    |  |
| Other services                      | 4.653.094  | 3.672.283  |  |
|                                     | 23.405.235 | 21.004.491 |  |

# 29. PAYROLL EXPENSES

Personnel costs for the six-month periods ended June 30, 2022 and 2021 break down as follows:

|                                                           | 30/06/2022 | 30/06/2021 |
|-----------------------------------------------------------|------------|------------|
| Remuneration of governing bodies in the parent company    | 122.250    | 122.250    |
| Remuneration of governing bodies in subsidiaries          | 169.892    | 134.625    |
| Personnel remuneration                                    | 14.893.080 | 13.273.641 |
| Pensions                                                  | 545.270    | 500.723    |
| Indemnities                                               | 156.504    | 409.745    |
| Charges on remuneration                                   | 3.912.634  | 3.654.397  |
| Insurance for accidents at work and occupational diseases | 221.592    | 219.358    |
| Other personnel expenses                                  | 1.880.668  | 1.327.486  |
|                                                           | 21.901.890 | 19.642.225 |

#### REMUNERATION OF MEMBERS OF GOVERNING BODIES

The remuneration of the members of the governing bodies of Toyota Caetano Portugal, S.A. in the semesters ended on June 30, 2022 and 2021 were as follows:

| Governing bodies               | 30/06/2022 | 30/06/2021 |
|--------------------------------|------------|------------|
| Board of Directors             |            |            |
| Remuneration on parent company | 122.250    | 122.250    |
| Remuneration on subsidiaries   | 134.625    | 134.625    |
| Fiscal Board                   | 2.340      | 2.340      |

#### EVOLUTION OF THE AVERAGE NUMBER OF PERSONNEL

During the six-month periods ended June 30, 2022 and 2021, the average number of personnel was as follows:

| Personnel | 30/06/2022 | 30/06/2021 |
|-----------|------------|------------|
| Employees | 1.096      | 1.111      |
| Workers   | 431        | 433        |
|           | 1.527      | 1.544      |

# 30. OTHER OPERATING INCOME AND EXPENSES

As at 30 June 2022 and 2021, the item "Other operating income" has the following composition:

| Other operating income                                         | 30/06/2022 | 30/06/2021 |
|----------------------------------------------------------------|------------|------------|
| Recovery of charges of guarantees and other operating expenses | 2.976.345  | 3.557.101  |
| Rents collected                                                | 1.946.553  | 1.783.729  |
| Works for the own company                                      | 1.476.806  | 1.618.787  |
| Exploration subsidies                                          | 2.011.105  | 3.539.907  |
| Recovery of advertising and sales promotion charges            | 277.563    | 1.142.606  |
| Services rendered                                              | 1.282.953  | 1.119.699  |
| Expense recovery                                               | 969.432    | 789.368    |
| Capital gains on the sale of assets                            | 492.951    | 1.050.363  |
| Corrections related to previous years                          | 1.537      | 130.496    |
| Intermediation commissions on vehicle financing                | 74.192     | 82.309     |
| Claims compensation                                            | 2.073      | 12.329     |
|                                                                | 11.511.510 | 14.826.694 |

Detailing the main values mentioned above, we have to mention that:

- the items "Recovery of charges of guarantees and other operating expenses" and "Recovery of advertising and sales promotion charges" essentially include amounts relating to the recovery of charges (relating to the represented brands, with the supplier Toyota Japan Group) with repairs carried out under guarantees in the amount of 1.434 thousand Euros as at 30 June 2022 (1.297 thousand Euros as at 30 June 2021). This heading also includes the recovery of various charges borne by the Group with marketing and commercial promotion activities associated with its operations, with the supplier Toyota Japan Group, as well as the recovery of transport charges associated with sales processes. Expenses incurred associated with that recovery of charges are recognized in several headings of the consolidated income statement, namely: (i) cost of goods sold and materials consumed (in relation to materials incorporated and consumed in vehicle repair processes), (ii) personnel costs (in relation to the labour used in the vehicle repair processes), and (iii) external supplies and services (where expenses related to vehicle repairs carried out by dealers and independent repairers, transport charges, marketing and advertising charges, among others are recognized);
- the heading "Rents collected" includes an amount related to rents on investment properties of around 1.4 million euros (1.2 million euros in 2021). The aforementioned rents are partially derived from real estate asset leasing contracts entered into with various related entities, with the respective detail relating to the six-month periods ended on June 30, 2022 and 2021, as follows:

| Entity                                          | 30/06/2022 | 30/06/2021 |
|-------------------------------------------------|------------|------------|
| CaetanoBus - Fabricação de Carroçarias, S.A.    | 680.886    | 398.180    |
| Toyota Logistic. Serviços Portugal, Unip., Lda. | 284.555    | 292.924    |
| Caetano Aeronautic, S.A.                        | 84.603     | 93.557     |
| Other Related Parties                           | 93.124     | 83.347     |

 the item "Services Rendered" essentially refers to debits of administrative fees to companies outside the Toyota Caetano perimeter, including several related entities. The detail of "Services Rendered" with related parties for the six-month periods ended June 30, 2022 and 2021 is as follows:

| Entity                                         | 30/06/2022 | 30/06/2021 |
|------------------------------------------------|------------|------------|
| CaetanoBus - Fabricação de Carroçarias, S.A.   | 374.630    | 370.999    |
| Caetano Retail S.G.P.S., S.A.                  | 147.662    | 110.723    |
| Caetano Baviera - Comércio de Automóveis, S.A. | 85.040     | 75.226     |
| Rigor - Consultoria e Gestão, S.A.             | 75.702     | 75.070     |
| Caetano Aeronautic, S.A.                       | 60.084     | 50.780     |
| Guérin - Rent-a-Car (Dois), S.A.               | 40.341     | 37.576     |
| Other Related Parties                          | 219.479    | 171.539    |
| Others                                         | 280.014    | 227.785    |
| Total                                          | 1.282.953  | 1.119.699  |

- the heading "Expense recovery" includes, among others, income related to social services (debit of expenses with canteen and training to related companies);
- the item "Capital gains on the sale of assets" includes the amount of approximately 318 thousand Euros corresponding to the capital gain obtained by the Group from the sale of the investment property located at Rua das Pereiras in Vila Nova de Gaia;
- the heading "Exploration subsidies" considers the amount of around 2 million Euros relating to support from the IEFP – Instituto de Emprego e Formação Profissional in respect of the training actions provided by the Group in its various vocational training centres. As at 30 June 2021, the amount of 3.5 million Euros, in addition to the previously mentioned IEFP support, also includes government support to face the pandemic caused by the new Covid-19 coronavirus.

As of June 30, 2022 and 2021, the item "Other operating expenses" has the following composition:

| Other operating expenses              | 30/06/2022 | 30/06/2021 |  |
|---------------------------------------|------------|------------|--|
| Taxes                                 | 579.861    | 628.320    |  |
| Corrections related to previous years | 27.453     | 83.324     |  |
| Fines and penalties                   | 16.865     | 12.146     |  |
| Losses in Inventories                 | 11.270     | 49.458     |  |
| Affiliation fees                      | 21.272     | 20.120     |  |
| Donations                             | 4.417      | 35.372     |  |
| Others not specified                  | 803.331    | 726.355    |  |
|                                       | 1.464.469  | 1.555.095  |  |

The "Others not specified" item essentially includes expenses with commercial incentives and bonuses granted to concessionaires.

### 31. FINANCIAL RESULTS

As of June 30, 2022 and 2021, the consolidated financial results are as follows:

| Expenses and Losses                 | 30/06/2022 | 30/06/2021 |
|-------------------------------------|------------|------------|
| Supported Interest                  | 656.937    | 627.514    |
| Interest on Leases (IFRS16)         | 56.217     | 68.001     |
| Other financial expenses and losses | 552.585    | 551.764    |
|                                     | 1.265.739  | 1.247.279  |

| Income and Gains  | 30/06/2022 | 30/06/2021 |  |
|-------------------|------------|------------|--|
| Obtained Interest | 94.564     | 6.297      |  |
|                   | 94.564     | 6.297      |  |

# 32. FINANCIAL ASSETS AND LIABILITIES

We present below a summary table of the Group's financial instruments as at 30 June 2022 and 31 December 2021:

| Description               | Note | Assets at amortized<br>cost | Assets recorded at<br>fair value through<br>other comprehensive<br>income | Other non<br>financial assets | Total      |
|---------------------------|------|-----------------------------|---------------------------------------------------------------------------|-------------------------------|------------|
| As of June 30, 2022       |      |                             |                                                                           |                               |            |
| Non-current Assets        |      |                             |                                                                           |                               |            |
| Other investments         | 11   | 4.779.622                   | -                                                                         | -                             | 4.779.622  |
| Accounts receivable       | 13   | 646.625                     | -                                                                         | -                             | 646.625    |
|                           |      | 5.426.247                   | -                                                                         | -                             | 5.426.247  |
| Current Assets            |      |                             |                                                                           |                               |            |
| Accounts receivable       | 13   | 56.674.658                  | -                                                                         | -                             | 56.674.658 |
| Other debtors             | 14   | 1.099.308                   | -                                                                         | 223.034                       | 1.322.342  |
| Other current assets      | 15   | 2.893.115                   | -                                                                         | -                             | 2.893.115  |
| Cash and cash equivalents | 4    | 15.063.989                  | -                                                                         | -                             | 15.063.989 |
|                           |      | 75.731.070                  | -                                                                         | 223.034                       | 75.954.104 |

| Description               | Note | Assets at<br>amortized cost | Assets recorded at<br>fair value through<br>other comprehensive<br>income | Other non<br>financial assets | Total      |
|---------------------------|------|-----------------------------|---------------------------------------------------------------------------|-------------------------------|------------|
| As of December 31, 2021   |      |                             |                                                                           |                               |            |
| Non-current Assets        |      |                             |                                                                           |                               |            |
| Other investments         | 11   | 4.606.025                   | -                                                                         | -                             | 4.606.025  |
| Accounts receivable       | 13   | 766.236                     | -                                                                         | -                             | 766.236    |
|                           |      | 5.372.261                   | -                                                                         | -                             | 5.372.261  |
| Current Assets            |      |                             |                                                                           |                               |            |
| Accounts receivable       | 13   | 53.704.915                  | -                                                                         | -                             | 53.704.915 |
| Other debtors             | 14   | 819.992                     | -                                                                         | 208.886                       | 1.028.878  |
| Other current assets      | 15   | 4.130.654                   | -                                                                         | -                             | 4.130.654  |
| Cash and cash equivalents | 4    | 22.122.760                  | -                                                                         | -                             | 22.122.760 |
|                           |      | 80.778.321                  | -                                                                         | 208.886                       | 80.987.207 |

| Description               | Note | Liabilities at<br>amortized cost | Other non-financial<br>liabilities | Total       |
|---------------------------|------|----------------------------------|------------------------------------|-------------|
| As of June 30, 2022       |      |                                  |                                    |             |
| Non-current Liabilities   |      |                                  |                                    |             |
| Loans                     | 19   | 24.174.819                       | -                                  | 24.174.819  |
| Other creditors           | 21   | 4.760.680                        | -                                  | 4.760.680   |
|                           |      | 28.935.499                       | -                                  | 28.935.499  |
| Current Liabilities       |      |                                  |                                    |             |
| Loans                     | 19   | 21.137.571                       | -                                  | 21.137.571  |
| Accounts payable          | 20   | 34.267.096                       | -                                  | 34.267.096  |
| Other creditors           | 21   | 19.423.176                       | 46.872.892                         | 66.296.068  |
| Other current liabilities | 23   | 27.514.537                       | -                                  | 27.514.537  |
|                           |      | 102.342.380                      | 46.872.892                         | 149.215.272 |

| Description               | Note | Liabilities at<br>amortized cost | Other non-financial<br>liabilities | Total       |
|---------------------------|------|----------------------------------|------------------------------------|-------------|
| As of December 31, 2021   |      |                                  |                                    |             |
| Non-current Liabilities   |      |                                  |                                    |             |
| Loans                     | 19   | 25.375.771                       | -                                  | 25.375.771  |
| Other creditors           | 21   | 2.275.204                        | -                                  | 2.275.204   |
|                           |      | 27.650.975                       | -                                  | 27.650.975  |
| Current Liabilities       |      |                                  |                                    |             |
| Loans                     | 19   | 22.280.235                       | -                                  | 22.280.235  |
| Accounts payable          | 20   | 43.622.927                       | -                                  | 43.622.927  |
| Other creditors           | 21   | 20.900.067                       | 33.787.564                         | 54.687.631  |
| Other current liabilities | 23   | 23.535.088                       | -                                  | 23.535.088  |
|                           |      | 110.338.317                      | 33.787.564                         | 144.125.881 |

In compliance with paragraph 93 of IFRS 13, the classification of fair value measurements of financial instruments, by hierarchical level, is disclosed below:

- a) Level 1 quoted prices investment in Fundo Cimóvel, recorded under the heading "Other investments" (Note 11): 4.641.544 Euros (4.474.657 Euros as at 31 December 2021);
- b) Level 2 inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices);
- c) Level 3 inputs for the asset or liability that are not based on observable market data (unobservable inputs).

# 33. INFORMATION BY SEGMENTS

For the six-month period ended June 30, 2022 and 2021, the reporting detail by segments is as follows:

|                                               | 30/06/2022 |                                                                           |                     |           |                      |          |                   |                     |           |                       |                      |               |        |               |              |
|-----------------------------------------------|------------|---------------------------------------------------------------------------|---------------------|-----------|----------------------|----------|-------------------|---------------------|-----------|-----------------------|----------------------|---------------|--------|---------------|--------------|
|                                               | NATIONAL   |                                                                           |                     |           |                      |          |                   |                     |           | EXTERNAL              |                      |               |        |               |              |
|                                               |            |                                                                           | Automotive Vehicles |           | Industrial Equipment |          |                   | Others              |           | Automotive Vehicles   | Industrial Equipment |               |        | ELIMINATIONS  | CONSOLIDATED |
|                                               | Industry   | Commerce                                                                  | Services            | Rental    | Machines             | Services | Rental            |                     | Industry  | Commerce Machines     |                      | Services      | Rental |               |              |
| REVENUE                                       |            |                                                                           |                     |           |                      |          |                   |                     |           |                       |                      |               |        |               |              |
| Turnover                                      |            | 1.412.555 278.380.015 10.390.348 12.821.777 3.625.280 2.357.090 6.253.542 |                     |           |                      |          |                   | -                   |           | 22.291.067 11.335.310 |                      | 2.068 260.060 | 2.868  | (117.221.310) | 231.910.670  |
| RESULTS                                       |            |                                                                           |                     |           |                      |          |                   |                     |           |                       |                      |               |        |               |              |
| Operating results                             | (236.170)  | 9.234.855                                                                 | 1.285.918           | 1.246.488 | 865.271              |          | 987.209 1.165.011 | (2.855)             | (468.204) | 292.213               | 1.298                | 9.961         | 2.402  | 529.009       | 14.912.406   |
| Financial results                             | (3.208)    | (853.617)                                                                 | (14.634)            | (213.497) | (11.735)             | (6.124)  | (13.035)          | -                   | (51.647)  | (3.613)               | (4)                  | (54)          | (7)    | -             | (1.171.175)  |
| Income tax for the period                     | -          | -                                                                         | -                   | -         | -                    | -        |                   | - (3.027.013)       | -         | -                     | -                    | -             | -      | -             | (3.027.013)  |
| Net results with non<br>controlling interests | (239.378)  | 6.586.688                                                                 | 941.262             | 883.415   | 661.490              | 659.114  |                   | 909.441 (3.276.181) | (519.851) | 224.163               | 1.294                | 9.907         | 2.395  | 594.278       | 7.438.037    |
|                                               |            |                                                                           |                     |           |                      |          |                   |                     |           |                       |                      |               |        |               |              |
| OTHER INFORMATIONS                            |            |                                                                           |                     |           |                      |          |                   |                     |           |                       |                      |               |        |               |              |
| Depreciation and<br>amortization              | 266.748    | 1.401.826                                                                 | 1.185.940           | 2.056.343 | 30.716               |          | 5.093 2.453.075   | -                   | -         | 83.025                | -                    | -             | -      | (261.162)     | 7.221.604    |

|                                               | 30/06/2021          |                                                                      |                               |                   |                      |          |                 |                     |          |                       |          |          |              |              |             |
|-----------------------------------------------|---------------------|----------------------------------------------------------------------|-------------------------------|-------------------|----------------------|----------|-----------------|---------------------|----------|-----------------------|----------|----------|--------------|--------------|-------------|
|                                               |                     |                                                                      |                               |                   | NATIONAL             |          |                 |                     |          |                       | EXTERNAL |          |              |              |             |
|                                               | Automotive Vehicles |                                                                      |                               |                   | Industrial Equipment |          | Others          | Automotive Vehicles |          | Industrial Equipment  |          |          | ELIMINATIONS | CONSOLIDATED |             |
|                                               | Industry            | Commerce                                                             | Services                      | Rental            | Machines             | Services | Rental          |                     | Industry | Commerce Machines     |          | Services | Rental       |              |             |
| REVENUE                                       |                     |                                                                      |                               |                   |                      |          |                 |                     |          |                       |          |          |              |              |             |
| Turnover                                      |                     | 18.248 227.325.667 9.142.843 1.842.445 4.882.145 2.451.244 6.772.817 |                               |                   |                      |          |                 | -                   |          | 18.547.630 10.535.485 | 25.500   | 46.721   | 3.358        | (95.838.331) | 185.755.772 |
| RESULTS                                       |                     |                                                                      |                               |                   |                      |          |                 |                     |          |                       |          |          |              |              |             |
| Operating results                             | 4.538               |                                                                      | 5.204.133 1.395.562 (315.803) |                   | 441.951              | 991.500  | 347.522         | -                   | 320.200  | 186.611               | 3.811    | 32.581   | 2.871        | (1.025.750)  | 7.589.727   |
| Financial results                             | 27                  | (920.234)                                                            | (22.970)                      | (145.050)         | (21.581)             | (10.920) | (32.879)        | -                   | (66.008) | (21.011)              | (141)    | (203)    | (12)         | -            | (1.240.982) |
| Income tax for the period                     | -                   | -                                                                    | -                             | -                 | -                    | -        |                 | - (1.509.050)       | -        | -                     | -        | -        | -            | -            | (1.509.050) |
| Net results with non<br>controlling interests | 4.566               | 2.144.725                                                            |                               | 54.980 (365.570)  | 420.370              | 980.579  |                 | 345.544 (1.862.612) | 254.192  | 118.596               | 3.669    | 32.378   | 2.859        | 842.807      | 2.977.083   |
|                                               |                     |                                                                      |                               |                   |                      |          |                 |                     |          |                       |          |          |              |              |             |
| OTHER INFORMATIONS                            |                     |                                                                      |                               |                   |                      |          |                 |                     |          |                       |          |          |              |              |             |
| Depreciation and<br>amortization              | 244.585             | 2.688.006                                                            |                               | 242.738 3.797.019 | 34.689               |          | 6.576 2.744.839 | 456                 | -        | 92.455                | -        | -        | -            | (272.885)    | 9.578.478   |

The information by segments presented above corresponds to the one presented to the Board of Directors for the purposes of approving the Group's accounts and also used in the decision-making process. The sub-segment relating to the industrial vehicle assembly activity is included in the "Automotive Vehicles - Industry" segment. Additionally, the training and development of human resources, as well as the activity of property management (investment properties), since they represent a secondary activity and without great expression, they are divided between the various segments. The Board of Directors understands that the presentation of these activities in autonomous segments is not presented as relevant in terms of the Group's financial reporting.

The column "Eliminations" essentially includes the cancellation of transactions between the Group companies included in the consolidation, mainly belonging to the "Automotive Vehicles" segment.

There are no revenues associated with transactions between the automotive vehicle segment and the industrial equipment segment.

# 34. RELATED PARTIES

Balances and transactions between the Parent Company and its subsidiaries, which are related entities of the Parent Company, were eliminated in the consolidation process and therefore will not be disclosed in this Note. The detail of balances and transactions between the Toyota Caetano Group and related entities (including associated entities and joint ventures) can be summarized as follows as of June 30, 2022 and 2021:

|                                                   |            |                  |                                         |                            | 30/06/2022 |             |                       |           |          |           |           |           |
|---------------------------------------------------|------------|------------------|-----------------------------------------|----------------------------|------------|-------------|-----------------------|-----------|----------|-----------|-----------|-----------|
|                                                   |            | Commercial debts | Other Current Assets and<br>Liabilities |                            | Products   |             | Tangible Fixed Assets |           | Services |           | Others    |           |
| Related Parties                                   | Receivable | Payable          | Other<br>Current<br>Liabilities         | Other<br>Current<br>Assets | Revenue    | Purchases   | Additions             | Disposals | Rendered | Obtained  | Expenses  | Income    |
| Participated companies                            | 3.150.626  | 894.705          | 40.705                                  | 168.629                    | 6.764.427  | 1.931.630   | -                     | -         | 124.017  | 892.067   | 39.969    | 1.180.379 |
| Shareholder                                       | 2.838.714  | 21.366.463       | 84.869                                  | 209.760                    | 22.039.683 | 121.781.838 | -                     | -         | -        | 461.839   | -         | 1.762.259 |
| Other related parties –<br>Salvador Caetano Group | 4.574.674  | 4.456.751        | 840.206                                 | -                          | 6.430.568  | 4.072.490   | 269.850               | 48.500    | 499.264  | 5.685.289 | 449.122   | 1.694.284 |
| Other related parties –<br>Toyota Japan Group     | 7.239.934  | 48.017.469       | 6.934.927                               | 3.833.823                  | 35.445.406 | 35.451.260  | 3.500                 | -         | -        | 242.950   | 1.014.331 | 755.720   |
|                                                   | 17.803.948 | 74.735.388       | 7.900.707                               | 4.212.212                  | 70.680.084 | 163.237.218 | 273.350               | 48.500    | 623.281  | 7.282.145 | 1.503.422 | 5.392.642 |

| 30/06/2021                                        |            |                  |                                         |                            |            |             |                       |           |          |           |             |           |
|---------------------------------------------------|------------|------------------|-----------------------------------------|----------------------------|------------|-------------|-----------------------|-----------|----------|-----------|-------------|-----------|
|                                                   |            | Commercial debts | Other Current Assets and<br>Liabilities |                            | Products   |             | Tangible Fixed Assets |           | Services |           | Others      |           |
| Related Parties                                   | Receivable | Payable          | Other<br>Current<br>Liabilities         | Other<br>Current<br>Assets | Revenue    | Purchases   | Additions             | Disposals | Rendered | Obtained  | Expenses    | Income    |
| Participated companies                            | 4.920.896  | 410.504          |                                         |                            | 7.087.944  | 2.880.191   | -                     | 2.500     | 196.462  | 578.649   | 335.560     | 800.384   |
| Shareholder                                       | 4.529.639  | 16.264.665       |                                         |                            | 18.404.942 | 103.465.100 | -                     | -         | -        | 187.551   | (1.216.775) | 1.863.279 |
| Other related parties –<br>Salvador Caetano Group | 5.252.728  | 4.754.428        |                                         |                            | 5.355.904  | 4.240.640   | 790.938               | 110.626   | 565.232  | 4.533.492 | 1.080.918   | 981.642   |
| Other related parties –<br>Toyota Japan Group     | 8.227.442  | 4.911.534        | 6.406.730                               | -                          | 42.287.286 | 20.416.501  | 110.765               | -         | -        | 165.705   | 436.917     | 642.667   |
|                                                   | 22.930.705 | 26.341.131       | 6.406.730                               | -                          | 73.136.076 | 131.002.432 | 901.703               | 113.126   | 761.694  | 5.465.397 | 636.620     | 4.287.972 |

### 35. CONTINGENT ASSETS AND LIABILITIES

Financial commitments assumed and not included in the Consolidated Statement of Financial Position:

As of June 30, 2022, December 31, 2021 and June 30, 2021, the Toyota Caetano Group had assumed the following financial commitments:

| Responsibilities                | 30/06/2022 | 31/12/2021 | 30/06/2021 |
|---------------------------------|------------|------------|------------|
| Guarantees provided: Collateral | 6.000.000  | 4.000.000  | 4.000.000  |
| Other financial guarantees      | 895.235    | 1.947.262  | 1.910.814  |
|                                 | 6.895.235  | 5.947.262  | 5.910.814  |

The amount of 6 million Euros presented as at 30 June 2022 related to "Guarantees provided: Collateral" (4 million Euros as at 31 December 2021 and 30 June 2021), refers to collateral provided to A.T.A. (Tax and Customs Authority) which are intended to guarantee the post-clearance payment of amounts resulting from duties and taxes, as well as vehicle tax in orders and registration requests made.

Following the contracted financing in the amount of around 26.8 million Euros, Toyota Caetano granted to the respective financial institutions, real guarantees relating to mortgages on real estate in the amount of around 14 million Euros.

#### Other Information

#### End-of-life vehicles

In September 2000, the European Commission voted on a directive concerning end-of-life vehicles and the corresponding responsibility of Producers/Distributors for their dismantling and recycling.

According to this regulation, Producers/Distributors will have to bear at least a significant part of the cost of taking back vehicles, placed on the market from July 1, 2002, as well as, for those sold before this date, when presented from 1 January 2007.

This legislation will have an impact on Toyota vehicles sold in Portugal. Toyota Caetano and its represented Toyota are closely monitoring the development of Portuguese National Legislation so that, in due course, they can quantify the impact of these operations on their financial statements.

It is, however, our conviction, given the studies already carried out on the Portuguese market, and given the possible recovery of waste resulting from the dismantling of the vehicles in question, that the effective impact of this legislation on the Group's accounts will be small, if not null.

In the meantime, and in order to comply with the legislation introduced in national regulations (Dec./Lei 196/2003), the Group entered into a contract with "ValorCar – Sociedade de Gestão de Veículos em Fim de Vida, Lda." – Company licensed as managing entity of the VFV integrated management system – the transfer of responsibilities inherent to this entire process.

#### Information related to the environmental area

The Group adopts the necessary measures in the environmental area, in order to comply with current legislation.

The Board of Directors of the Toyota Caetano Group does not estimate that there are any risks related to environmental protection and improvement, and did not receive any administrative infractions related to this matter during the first half of 2022.

### 36. EARNINGS PER SHARE

Earnings per share for the six-month periods ended June 30, 2022 and 2021 were calculated taking into account the following amounts:

|                                        | 30/06/2022 | 30/06/2021 |
|----------------------------------------|------------|------------|
| Results                                |            |            |
| Basic                                  | 7.438.037  | 2.977.083  |
| Diluted                                | 7.438.037  | 2.977.083  |
| Number of shares                       | 35.000.000 | 35.000.000 |
| Earnings per share (basic and diluted) | 0,213      | 0,085      |

During the six-month periods ended June 30, 2022 and 2021, there was no change in the number of shares.

### 37. SUBSEQUENT EVENTS

In addition to the impacts on the macroeconomic context with all the uncertainties that result from this for the activity of the companies that belong to the Toyota Group, as detailed in the management report, since the end of the semester in question until the present date, no relevant facts that should be mentioned here were observed.

#### 38. CONSOLIDATED FINANCIAL STATEMENTS APPROVAL

These Consolidated Financial Statements were approved by the Board of Directors on September 28, 2022.

![](_page_111_Picture_0.jpeg)

### REPORT AND OPINION OF THE FISCAL BOARD

#### Report and opinion of the Fiscal Council

In accordance with the terms of item g) of Article 420.º of the Companies Code and of the Articles of Association, it competes us to appreciate the report of the management performed and proceed to the general appraisal of the documents and statement of consolidated accounts of TOYOTA CAETANO PORTUGAL, SA, referring to the first semester of 2022 and 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 evolution of the social business with the frequency and to the extend considered advisable, to the general analysis of the financial procedures and the confirmation by sampling of the respective files.

We have no knowledge of any situation which didn't respect the articles of association and the legal terms applicable.

Thus,

112

All members of the Board of Auditors of the TOYOTA CAETANO PORTUGAL, SA under the terms of item c) of number 1 of Article 246.º of the Exchange Stock Code, hereby confirm, as far as it is our knowledge, that the information provided in item a) of the above referred article was elaborated according to accounting rules applicable, evidencing a correct and clear image of the assets and liabilities, of the financial highlights and results of Group TOYOTA CAETANO PORTUGAL, SA and that the report of the management clearly shows the business evolution, the performance and the position of the Group, evidencing as well a description of the mains risks and incertitude's to be faced.

In these terms, we believe that the Financial Statements referring to the period ending at 30th June 2022 accurately reflect the result of all operations developed in that same period by the Group Toyota Caetano Portugal, S.A.

Vila Nova de Gaia, 28th September 2022

![](_page_113_Picture_1.jpeg)

#### HEADQUARTERS

Av. Vasco da Gama. 1410

4431-956 Vila Nova de Gaia

Contact: +351 227 867 000

# OVAR MANUFACTURING UNIT

Rua de Olho Marinho (EN109), nº 1427

3885-113 Arada, Ovar

Contact: +351 256 790 042

### SOUTH INDUSTRIAL EQUIPMENT DIVISION

#### Carregado

Estrada Nacional 3 – km1

2580-595 Carregado

Contact: +351 263 857 244

### OTHER INFORMATION

Date of establishment: 4th of July 1946

N.I.P.C. 500 239 037

Conservatória do Registo Comercial of Vila Nova de Gaia, number 500239037

The Company did not change its corporate name in 2022.