Interim / Quarterly Report • Aug 28, 2020
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
- Consolidated Accounts -
Jorge Manuel Coutinho Franco da Quinta – Chairman António José da Cruz Espinheira Rio – Vice-Chairman Alírio Ferreira dos Santos – Secretary João António Ferreira de Araújo Sequeira – Secretary
José Reis da Silva Ramos – Chairman & CEO Maria Angelina Martins Caetano Ramos – Member Salvador Acácio Martins Caetano – Member Miguel Pedro Caetano Ramos – Member Gisela Maria Falcão Sousa Pires Passos – Member Matthew Peter Harrison - Member Katsutoshi Nishimoto – Member Masaru Shimada – Alternate
José Domingos da Silva Fernandes - Chairman Antonieta Isabel da Costa Moura - Member Daniel Broekhuizen – Member Maria Lívia Fernandes Alves – Alternate Akito Takami – Alternate
Deloitte & Associados, Sociedade de Revisores Oficiais de Contas, SA. represented by Mr. Miguel Nuno Machado Canavarro Fontes, Joao Carlos Henriques Gomes Ferreira – Alternate
The following progress report has been prepared in accordance with Article 246(1)(b) of the Portuguese Securities Code. For each of the Companies included in the consolidation scope of Toyota Caetano Portugal, it contains all the main events occurred during the period under analysis, as well as their impact on the financial statements.
At the same time, the main expectations for the 2nd half of the current year are also presented, albeit in a summarised way.
In the first half of 2020, the Ovar Plant produced a total of 453 vehicles, representing a 63.2% decrease over the same period last year. This decrease is directly related to the impacts caused by the COVID-19 pandemic, not only in Portugal, but also in the product's destination (South Africa).
Due to the creation of a health enclosure around the municipality of OVAR, TCAP found itself unable to produce for over a month, while seeing some of its orders cancelled. In order to overcome these constraints, we agreed with our partners, Toyota Motor Corporation and Toyota South Africa Manufacturing, on reorganising production for the 2nd half of the year.
Naturally, this reorganisation presumes a return to normal in both Portugal and South Africa, as any outlook could be seriously affected by new pandemic waves of Covid-19.
During the period of inactivity, the Company applied to existing operating aid programmes (simplified layoff), in order to minimise the economic impact on the current financial year.
In the meantime, our operational Safety teams implemented every DGS (Portuguese Health Authority) guideline, as well as the best practices recommended by TME so that a return to production could be achieved as safely as possible.
We should point out that, during this period, TCAP-DFO took the initiative of offering a Toyota Hiace ambulance to the Ovar Volunteer Fire Brigade, while collaborating with several local entities in providing PPE in the fight against COVID-19 (masks, protective suits, among others).
In PPO/PDI operations, 1,419 vehicles were transformed/prepared, corresponding to a 38.6% drop relative to the same period the year before, once again justified by the impact that COVID-19 has been causing on the domestic automotive trade.
| 2020 | 2019 | ||
|---|---|---|---|
| Production | (Jan-Jun) | 2019 | (Jan-Jun) |
| Toyota Physical Units | 453 | 2,393 | 1,234 |
| Transformed/prepared Physical Units |
1,419 | 5,577 | 2,313 |
| Total Employees (LC70+PDI AND POOL) |
193 | 197 | 201 |
The 1st half of 2020 was heavily conditioned by the highly unfavourable context generated by the COVID-19 pandemic.
The unprecedented nature of the current crisis entailed highly significant impacts on consumer confidence indicators as well as on all economic activity indicators.
The lockdown measures, which directly involved suspending operations at many companies and restricted citizen mobility, were combined with the negative effects of uncertainty regarding consumer and investment intentions.
These mobility restrictions, with direct impact on the tourist sector, also drastically conditioned the sales volume of car rental vehicles.
The automotive market plummeted 48.2%. This decline was sharper in passenger vehicles, which slid 49.6%, whereas light commercial vehicles dropped 38.9%%.
Source: ACAP
Considering the context of a pandemic experienced during the 2nd quarter of this year, Toyota recorded a sharp decline (below that of the market) of 40.9%, with a total of 3,654 units sold.
These sales enabled us to achieve an overall market share of 4.8% in the first half of the year (+0.6 percentage points against 2019).
Toyota's performance was different, depending on whether we are talking about Light Passenger Vehicles or Light Commercial Vehicles:
This sales development, which, while negative, is more favourable than that occurring in the market, is due, to a large extent, to the contribution from the new Corolla, launched in early 2019. This model has completed 1 year of sales, which were clearly on the rise in the first few months of this year.
This performance, which surpassed that of the market, is mostly driven by the launch of the new model Proace City. This is included in the largest commercial vehicle market segment – the Small Van segment.
For this year's second semester, and while maintaining the so-called "return to normal", we expect a gradual recovery of the brand's overall performance; for passenger vehicles, this rests on the launch of the new-generation model Yaris; for commercial vehicles, this will be upheld by the recently launched model Proace City.
The premium market decreased by 36.3% in the 1st half of 2020.
Lexus showed a 46% drop over the previous year. This corresponded to a 0.9% market share in the premium segment.
Source: ACAP
Following the sharp decline that occurred in the second half of March and in April, as a result of the State of Emergency put in place and the corresponding social lockdown, Lexus began its recovery in May, with a greater focus on used vehicle operations under its Lexus Select programme.
In view of the lockdown easing and the expected (and desired) return to normal, the prospect calls for greater recovery of New Vehicle sales in the 2nd half of the year. This should allow recovering Market Share.
The After-Sales Division billed a total of 14.9 million euros in the first half of 2020.
This figure represents an 18.1% decline relative to the first half of 2019.
As for accessories, turnover (which includes merchandising) totalled 1 million euros. This figure is 45.6% below the turnover achieved in the same period in 2019.
Since the accessories business is directly linked to car sales, which experienced a sharp decline in the last three months due to COVID-19, this naturally shows a sharper fall (compared to parts sales).
As mentioned, TCAP's results (parts and accessories sales) in the first half of 2020 reflect the scenario resulting from the emergence and spread of the COVID-19 pandemic, as well as its economic and social consequences. The first impacts were felt in the first half of March. Even so, at the end of the first quarter, the parts turnover goal was achieved at 101.8%.
In the following weeks, Portugal witnessed the consequences of the health crisis taking hold worldwide: population in lockdown, lay-offs / job losses and dwindling consumer confidence. In view of this nationwide scenario, as well as limited availability at the network's service centres, there was naturally a decrease.
In this period, TCAP's priority was to provide maximum immediate support to the dealership / RTA network, to allow keeping the business running.
Thus, the TCAP team immediately, dynamically and diligently committed to creating several countermeasures to face the situation, in order to provide the network with economic support.
These measures most notably include:
These measures sought to create a climate of trust and to ensure the customers' quick, swift and sustainable return to service centres and branches within the dealership network. In June, we witnessed sales figures very close to those achieved the previous year.
It is our expectation that the remaining months of this financial year will bring us back to normal, thereby resuming the levels of activity experienced prior to COVID-19.
| MARKET | TOYOTA SALES | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Variation | '19 | '20 | |||||||
| '19 | '20 | % | QTY | Share | QTY | Share | % | ||
| Counterbalanced Forklift Trucks |
823 | 458 | -44,3% | 237 | 28,8% | 94 | 20,5% | -60,3% | |
| Warehouse Equipment | 1403 | 934 | -33,4% | 368 | 26,2% | 153 | 16,4% | -58,4% | |
| TOTAL MMC | 2226 | 1392 | -37,5% | 605 | 27,2% | 247 | 17,7% | -59,2% |
Source : FEM
In the first half of 2020, the Cargo-Moving Machinery market recorded a 37.5% drop, which reflected the impact caused by the COVID-19 Pandemic.
With regard to Toyota, the impact that was felt was greater than in the market, with only 247 orders placed, resulting in a YOY decline of 59.2%, corresponding to a 17.7% market share.
Regarding the segment of Counterbalanced Forklifts, we notice that the no. of ordered units decreased significantly (-60.3%) compared to the same period of the previous year. This decline reflects the impact of lockdown measures put in place from March to May, which brought about an abrupt stoppage or significant slowdown of nearly every activity and the consequent postponement or suspension of investment.
In the Warehouse equipment segment, the decrease in orders stood at 58.4%, due to the aforementioned reasons.
In spite of the high degree of uncertainty still generating a lack of market confidence, we predict a gradual and progressive recovery in the 2nd half of the year, which will undoubtedly be contingent on the pandemic situation (whether or not a 2nd wave occurs).
With regard to the budget that was originally prepared and approved, this will obviously not be met, given the extraordinary events that have occurred. In spite of such events, the outlook calls for positive and quite satisfactory results for this activity.
In line with the trend already recorded in the last financial year (2019 against 2018), Caetano Auto began 2020 with an accumulated turnover in February, which also showed an upward trend compared to the same period in 2019.
However, March 2020 marked the start of the COVID-19 pandemic in Portugal, plunging the nation (and the world) into a pronounced downturn of the entire business nearly without exception.
Within this context, in the second quarter of 2020 Caetano Auto also recorded a very sharp decline in its business, all the more since the car dealership business was included in a governmental list of activities temporarily suspended because of this pandemic.
On the other hand, and in addition to the contingency measures adopted by the company to mitigate this effect (layoff, teleworking, disinfection of the facilities, distancing at the premises, etc.), from the commercial point of view the business was geared to other channels that are more in line with this exceptional situation (auctions, internet, more aggressive marketing, more promotional events, etc.).
With these measures, Caetano Auto minimised the effect of this crisis, but was unable to prevent a drop in turnover of around 33% for the first half of this year compared to the first half of 2019.
| (Thousands Euros) | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | ||||
| Turnover | 116,694 | 78,672 |
With regard to expenses, and as a result of careful management, these remained adjusted to the business, even recording a significant decline, due to layoffs, in staff expenditures and also in fuels and other travel and accommodation expenses incurred when providing external supplies and services, as per the following table:
| (Thousands Euros) | ||
|---|---|---|
| 2019 | 2020 | |
| External supplies and services | 7,195 | 6,168 |
| Staff expenses | 11,552 | 9,107 |
Despite these reductions in the area of expenses, in this period it was impossible to maintain the positive results achieved in the 1st half of the previous financial year. Even so, we believe that, since normal activity is expected to be resumed in the 2nd half of the year, Caetano Auto will be able to return to a more acceptable level of results, namely with figures getting back in the black, if everything remains as expected.
The 1st quarter of 2020 shows that the climate indicator (shown below) reversed the upward trend of previous quarters; that is, the economic growth rate slowed down significantly in the first quarter of 2020, recording the lowest figure of the last fifteen (15) straight quarters. The indicator lies below the series average, having undergone an unfavourable change relative to the same period in 2019. This shows that the business climate is unfavourable.
However, without the disclosure of results for the 2nd quarter of 2020, we expect to see a climate marked by an even sharper decline: as a result of the pandemic, Cape Verde declared a State of Emergency on 29/03/2020, which remained in place until 14/05/2020. During this period, all activities were shut down, except essential services.
Our activity was not considered essential, and so our doors remained closed this entire period. Currently, we are still in a state of public disaster, with several restrictions to normal life and to the normal course of business.
Our situation is worsening, as, during the first quarter of 2020, Caetano Auto CV, SA's operations were completely blocked by Cape Verde's Customs authorities. The most severe outcome was recorded in the month of January, harshly undermining its performance, but the negative repercussions derived from these measures taken by Cape Verdean authorities were still being felt in February and March 2020.
| SEGMENT | BRAND | 2019 | 2020 | QTY. | % |
|---|---|---|---|---|---|
| Light-Duty Passenger Vehicles | Toyota | 79 | 38 | -41 | -51.9% |
| Light Commercial Vehicles | Toyota | 136 | 88 | -48 | -35.3% |
| Heavy Commercial Vehicles | Toyota | 7 | 10 | 3 | 42.9% |
| Total | 222 | 136 | -86 | -38.7% |
Comparing the 1st half of 2020 with the same period from the previous year, we notice that we sold 86 less vehicles in 2020 than in 2019. This represents a 38.7% drop in the number of units sold.
Source: Statistics Cape Verde
We see a sharper drop in the Light Passenger Vehicle segment as a result of people's fear of purchasing new vehicles in view of the pandemic scenario we are facing.
| Thousands CVE | |||||||
|---|---|---|---|---|---|---|---|
| Sales | 2019 | 2020 | Variation | ||||
| Parts / Accessories | 88.614 | 83.808 | $-4.806$ | $-5.42%$ | |||
| Workshop (Labour) | 21.370 | 17.390 | $-3.980$ | $-18,62%$ | |||
| 109.984 | 101.198 | $-8.786$ | $-7,99%$ |
After-Sales Service has also recorded a decline compared to the previous year, when comparing semi-annual periods. Even though the period of 2020 under analysis does not include the entire uptime occurred in 2019, we can see that the number of admissions at the service centre remains stable, along with a reasonable performance in parts compared to the previous year. Including June 2020, the period marking the end of the State of Emergency, we managed to attain the budget originally prepared for 2020.
With lockdown eased and a gradual return to normal economic activity, we expect to be able to lessen the negative effects of this crisis; by the end of the financial year, we expect to achieve a balanced result, considering all of the adversities experienced to date.
The year 2020 is completely atypical, considering the COVID-19 pandemic which we have been facing since March. This situation is having a highly negative impact on our economy, affecting, to a large extent, the tourism sector, which Caetano Renting is a part of.
We closed the 1st half of the year with a fleet of 2547 units, representing a drop of around 38.07%, compared to the same period in the previous year. This is because Rent A Cars, which are our main market segment, cancelled orders for new units that were scheduled for the first half of 2020, and some even returned several vehicles.
Also stemming from the pandemic, various customers were granted moratoria, mostly Rent A Cars, in this case, for 4 months, starting in April. This caused a decline in our Turnover, which was 46.60% in June, compared to the same period in 2019.
We believe that, in the 2nd half of 2020, economic recovery will be achieved and that we can, thus, return to pre-pandemic normalcy.
In the first half of 2020, Toyota Caetano Portugal and every company experienced challenges never before imagined or written in forecast scenarios, caused by the pandemic the world is facing. However, we ensured the organisation's continued Integrated People Management strategy.
In keeping with the Ser Caetano spirit, Toyota Way was the basis for adaptation to the context that marked this first part of the year, hinged on the willingness to always want to make daily improvements to processes and make them more efficient. Only a good People development project can enable us to attract and retain top talent and, subsequently, continue modelling the business to every new challenge.
In this first half of 2020 that has come to an end, People Management's biggest challenge consisted, and still consists, of taking advantage of the transformation that the pandemic hastened and included this change in our DNA. While the Internet and digitisation advances had long been predicted to catapult to work methodologies per se, we never thought this would happen so suddenly. Also surprising was the way the Toyota Team went from the 2020 reality to that of 2030 without having to go from 0 to 100.
Telework was the major trend that the entire organisation had to embrace. At Toyota Caetano Portugal, over 50% of its People started working digitally, with a highly positive level of adaptation and results.
The migration of the Kaizen methodology to digital tools was a significant step towards the success of this remote work process. Both the daily/weekly Kaizen per team and project monitoring meetings through the Hoshin Plan were ensured, using the available platforms. This way, we proceeded with continuous improvement procedures, we maintained communication between teams and, in the processes and actions where this was possible, a reply was given while keeping in mind future challenges.
Turning to the simplified Lay-off scheme allowed us to maintain the staff plan, where there were no significant changes. Aware of the effort asked of our People, but also of our responsibility as employers, this was the way we came up with to overcome the first impact of this pandemic.
In virtue of all this, many recruiting processes were delayed or cancelled. However, the effort and resilience to keep on building a strong employing brand with a sense of purpose and the willingness to beef up our Culture remained in place, most notably for improvements in the A.R.T.E. portal (Attracting and Retaining Talent Exponentially) – redesigning the strategy and integrated work of the Recruitment, Communication and Brand teams - and our participation in online job initiatives.
Another challenge we faced involved fostering remote Organisational Culture, with digital Communication and Training platforms as our main ally. Both Toyota's LMS platform, with several years' e-learning experience, and the Ser Caetano @cademy were very active at this stage in training & developing Employees. Through Toyota Brand-specific contents and the development of hard and soft skills, the idea was to ensure the efficiency of continuous training processes, Teleworking tips, as well as information on HR processes, considering the legal framework stemming from the Pandemic. On the other hand, youth training also had to adapt to the reality of distance learning, until we get back to predominantly practical learning, which distinguishes our Training Centres scattered nationwide. The challenge was taken up by trainees, instructors and the entire structure, and so we were able to minister the 35 courses, involving around 600 young people.
To interconnect all this, internal communication at this stage took on unprecedented importance. Increased communication with Employees was a concern, as part of the team was mobilised for this effort. On top of labour and health communications on the pandemic caused by COVID-19, we also reinforced our organisational alignment, namely through the launch of a newsletter for senior managers.
Toyota Caetano Portugal has been increasingly focused on its ethics and transparency policy, by materialising its sustainability strategy in line with a responsible social and environmental management. Examples of this include the involvement of its People in the Toyota 2050 Environmental Challenge, its participation, for the seventh straight year, in the "Carbon Disclosure Project (CDP) – Climate Change" sustainability report, in energy efficiency and in continuing the "One Toyota, One Tree" programme.".
Throughout this semester, the Corporate Social Responsibility policy has also been reviewed, by developing a plan of action geared towards the situation we are experiencing. This strategy was grounded on a support initiative for Employees going through difficult financial situations brought about by the pandemic, which is called Caetano Presente.
All of these initiatives and projects reflect our commitment to People and with the organisation's future, continually working to make Toyota Caetano Portugal an excellent place to live, grow and work.
After the first half of 2020, in a context of total unpredictability due to the COVID-19 pandemic, the automotive sector has emerged as one of the most affected industries, with a sharp drop in vehicle sales as a result of the behaviour of the market in recent times, an impact that was also felt by the Toyota Caetano Portugal Group.
In this context, the Group recorded a turnover of around 158 million euros, showing a drop of 31% compared to the same period of 2019; this result was primarily influenced by the vehicles and parts sales component, which fell by 32%, and mitigated by a smaller decline in workshop services, which dropped by 21%.
Despite a decrease in activity, it was possible to achieve a slight improvement in the sales margin, with lower operating expenses and, more significantly, lower staff costs, which allowed the Group to continue securing positive results .
The drop in staff costs compared to the same period of 2019 is directly related to the fact that some of the companies that make up the Group applied for the Simplified Lay-off scheme and to the associated support provided by the Portuguese Social Security.
As a result of the partnership established with Toyota Financial Services, thanks to which the activity between the Distributor and the Dealer Network was operationalised with the goal of reducing the average collection time, and consequently bank debt, Toyota Caetano Portugal recorded a 14% drop in the Customer's account compared to the end of the year, and 38%, compared to the same period of 2019. Similarly, we already started witnessing improvements in terms of indebtedness, with net bank financing standing at around 34 million euros, compared to around 80 million euros in June 2019.
In this context, the Group continues to reflect the ongoing pursuit of a policy aimed at managing the available means to create an adequate capital structure, refraining from turning to the moratorium schemes provided by law and made available by financial institutions.
The Group's degree of financial autonomy stands at 45.4%, 5 pp above that recorded in June 2019.
In order to summarise the recent developments in the activity and performance of the Toyota Caetano Portugal Group, the table below shows a number of comparative indicators, in thousands of euros, which reflect all the above:
| Jun 19 | Jun 20 | Variation | |
|---|---|---|---|
| Turnover | 228,167 | 157,622 | -30.9% |
| Gross Profit | 44,513 | 32,714 | -26.5% |
| % (f) sales | 19.5% | 20.8% | |
| External supplies and services | 23,426 | 19,524 | -16.7% |
| % (f) sales | 10.3% | 12.4% | |
| Staff expenses | 21,002 | 17,244 | -17.9% |
| % (f) sales | 9.2% | 10.9% | |
| E.B.I.T.D.A. | 21,414 | 12,257 | -42.8% |
| % (f) sales | 9.4% | 7.8% | |
| Operating income | 9,943 | 1,466 | -85.3% |
| % (f) sales | 4.4% | 0.9% | |
| Net financial income | -1,157 | -1,145 | 1.0% |
| % (f) sales | -0.5% | -0.7% | |
| Consolidated net income | 6,447 | 34 | -99.5% |
| % (f) sales | 2.8% | 0.0% | |
| Net Bank Credit | 79,572 | 33,961 | -57.3% |
| Degree of financial autonomy | 40.1% | 45.4% |
We should point out that, with the spread of the pandemic and, particularly, after the declaration of a state of emergency in the 2nd half of March, our Group was faced with a significant reduction in its activity, which dropped more than 60% in the following months (April/May). Obviously, such strong and sudden/unexpected reductions do not allow for an immediate reaction to guarantee an immediate balance of the cost/income ratio.
Thus, in the months mentioned above as the most critical ones, the Toyota Caetano Group was faced with losses, namely in the automotive retail areas, which virtually absorbed the good results achieved in the first 2 months of the year.
However, as a result of the support measures launched by the Government, together with a set of management decisions aimed at reducing costs, we were able to re-balance our results in June, thus creating the bases for a full recovery in the 2nd semester.
FY 2020 will evidently be atypical, considering the developments showed by the Group in recent years, but unless a strong 2nd wave of the new coronavirus strikes us next autumn, everything suggests that this will be a year with positive results, although significantly distant from those achieved in the recent past.
On 8 August 2019, Salvador Caetano Auto - S.G.P.S., S.A., in its capacity as a shareholder of Toyota Caetano Portugal, proposed that a resolution be discussed at a General Meeting of shareholders to be held on 30 August 2019, under the terms and for the purposes of the provisions under article 27(1)(b) of the Portuguese Securities Market Code, regarding Toyota Caetano Portugal S.A.'s loss of its status as a publicly traded company. Toyota Caetano Portugal shareholders present at the General Meeting of 30 August 2019 voted unanimously in favour of Salvador Caetano Auto, SGPS, SA.'s aspiration. Following that decision and subsequent notification to CMVM, the latter appointed the audit firm CFA – Cravo, Fontes, Antão & Associados, SROC, Lda to evaluate Toyota Caetano Portugal, bearing in mind the definition of the fair value of the securities representing the company. As we were informed by the company Salvador Caetano Auto, SGPS, SA, the per-share amount calculated by CFA – Cravo, Fontes, Antão & Associados, SROC, Lda and notified to CMVM on 17 April 2020 was not accepted by Salvador Caetano Auto, SGPS, SA; as a result, this company gave up its idea of acquiring Toyota Caetano Portugal, SA's remaining securities, and made CMVM aware of this fact in a release addressed on 22/04/2020.
Thus, Toyota Caetano Portugal, SA's status as a publicly traded company remained unchanged.
Toyota Caetano's credit risk is mainly associated with loans to customers, related to its operating activity.
The main goal of Toyota Caetano's credit risk management is to ensure the effective collection of the operating receivables from its Customers, according to the negotiated payment terms.
In order to mitigate the credit risk resulting from the potential customer-related defaults on payments, the Group's companies exposed to this risk have:
A specific Credit Risk analysis and monitoring department;
Proactive credit management processes and procedures that are implemented and always supported by information systems;
Hedging mechanisms (credit insurance, letters of credit, bank guarantees, etc).
As a result of the relevant proportion of debt at variable rate in its Consolidated Balance Sheet, and of the subsequent interest payment cash flows, Toyota Caetano is exposed to interest rate risk.
Toyota Caetano has been using financial derivatives to hedge, at least partially, its exposure to interest rate variations.
As a Group with geographically diversified commercial relationships, the exchange rate risk is mainly the result of commercial transactions, arising from the purchase and sale of products and services in a currency that is different from the functional currency of each company.
The exchange rate risk management policy seeks to minimise the volatility of the investments and operations denominated in foreign currencies, contributing toward reducing the sensitivity of the Group's results to exchange rate fluctuations. The Group's exchange rate management policy is focused on a case-by-case assessment of the opportunity to hedge this risk, taking into account, particularly, the specific circumstances of the currencies and countries in question.
Toyota Caetano has been using financial derivatives to hedge, at least partially, its exposure to exchange rate variations.
The goal of Toyota Caetano's liquidity risk management is to ensure that the company has the ability to obtain, in a timely manner, the necessary funding to be able to undertake its business activities, implement its strategy and meet its payment obligations when due, while avoiding the need to obtain funding under unfavourable terms.
For this purpose, the Group's liquidity management involves the following aspects:
c) The diversification of the maturities of the debt issued in order to avoid excessive concentrations of debt repayments in short periods of time;
d) The arrangement of committed (and uncommitted) credit facilities, commercial paper programmes, and other types of financial operations with relationship Banks, ensuring the right balance between satisfactory liquidity levels and adequate commitment fees.
For detailed information, please refer to the Corporate Governance Report.
The company did not purchase or sell any own shares during this fiscal year. On 30 June 2020, the company did not hold any own shares.
Since the end of the six-month period under analysis, to date, there were no relevant facts worthy of note.
We hereby declare, under the terms and for the purposes set forth in Article 246(1)(c) of the Securities Code (CVM), that, to the best of our knowledge, the consolidated financial statements of Toyota Caetano Portugal for the first half of 2020 were prepared in accordance with the applicable accounting standards, giving a true and fair view of the assets and liabilities, financial position and results of the company and that the interim management report faithfully sets out the information required under Article 246(2) of the CVM.
Vila Nova de Gaia, 27 August 2020
The Board of Directors
José Reis da Silva Ramos – Chairman Maria Angelina Martins Caetano Ramos Salvador Acácio Martins Caetano Miguel Pedro Caetano Ramos Gisela Maria Falcão Sousa Pires Passos Matthew Peter Harrison Katsutoshi Nishimoto
(Pursuant to article 447 of the Commercial Companies Code and according to Article 9(c) and Article 14(4), both of Regulation 5/2008 of CMVM)
In compliance with the provisions of article 447 of the Portuguese Commercial Companies Code, it is hereby declared that, in the first half of 2020, the members of the Company's management and supervisory boards did not hold any of its shares or bonds.
Furthermore, it is hereby stated that the members of the Company's management and supervisory boards were not engaged, during the first semester of 2020, in any acquisitions, encumbering or disposals involving the Company's shares or bonds.
It is further stated that the Company's securities held by companies in which the directors and auditors hold corporate positions are as follows:
– the shareholder Salvador Caetano Auto, SGPS, S.A. (of which Ms. Maria Angelina Martins Caetano Ramos is Chairwoman of the Board of Directors, Mr. Salvador Acácio Martins Caetano is Vice-Chairman of the Board of Directors and Mr. Miguel Pedro Caetano Ramos is Member of the Board of Directors), Acquired: on 16 March 2020, 1,000 shares at the amount of 2.70 € each; 18 March 2020, 17,289 shares at the amount of 2.80 € each; 19 March 2020, 113,377 shares at the amount of 2.80 € each; on 23 March 2020, 15,976 shares at the amount of 2.80 € each; on 27 March 2020, 801 shares at the amount of 2.80 € each; on 30 March 2020, 10,221 shares at the amount of 2.80 € each; on 30 March 2020, 45 shares at the amount of 2.80 € each; on 1 April 2020, 3,461 shares at the amount of 2.80 € each; on 2 April 2020, 83 shares at the amount of 2.80 € each; on 8 April 2020, 3,200 shares at the amount of 2.80 € each; on 20 April 2020, 33,413 shares at the amount of 2.80 € each; on 22 April 2020, 25,000 shares at the amount of 2.80 € each; on 23 April 2020, 223,776 shares at the amount of 2.80 € each; on 15 May 2020, 8,870 shares at the amount of 2.70 € each; 18 May 2020, 5,000 shares at the amount of 2.70 € each; on 21 May 2020, 5,554 shares at the amount of 2.70 € each; on 24 June 2020, 1,865 shares at the amount of 2.70 € each; and so, on 30 June 2020, the company held 24,406,596 shares at the nominal value of 1 euro each.
For the purpose provided in the final section of article 447(1) of the Commercial Companies Code (companies in a control or group relationship with the company), it is stated that:
• José Reis da Silva Ramos, Chairman of the Board of Directors, holds:
1 This percentage includes shares held by the spouse
• Maria Angelina Martins Caetano Ramos, Member of the Board of Directors, holds: - 39.49%1 of the share capital of Grupo Salvador Caetano, SGPS, S.A., a company in a control
relationship with the Company; 1 This percentage includes shares held by the spouse
• Salvador Acácio Martins Caetano, Member of the Board of Directors, holds:
1 This percentage includes shares held by the spouse
• Miguel Pedro Caetano Ramos, Member of the Board of Directions, holds:
(Pursuant to CMVM Regulation 5/2008)
On 30 June 2020, the shareholders with qualified shareholdings in the company's share capital are the following:
| ----------------------------------------------------------------------------------------------------------------------------- | ||
|---|---|---|
| SHAREHOLDER | Shares | % of voting rights |
| ----------------------------------------------------------------------------------------------------------------------------------------- Salvador Caetano - Auto - SGPS, S.A. Toyota Motor Europe NV/SA |
24,406,596 9,450,000 |
69.733 27.000 |
| jun/20 | jun/19 |
|---|---|
| 157.621.769 | 228.166.890 |
| 11.830.392 | 20.829.708 |
| 1.145.411 | 1.157.154 |
| 17.243.691 | 21.002.023 |
| 5.176.051 | 20.896.724 |
| 1.517 | 1.608 |
| 34.104 | 6.446.949 |
| 94.621 | 6.391.195 |
| 45,43% | 40,08% |
| ASSETS | Notes | 30/06/2020 | 31/12/2019 | |
|---|---|---|---|---|
| NON-CURRENT ASSETS: | ||||
| Goodwill Intangible assets |
7 8 |
611.997 529.165 |
611.997 465.385 |
|
| Tangible fixed assets Investment properties |
5 6 |
104.419.878 13.462.004 |
110.019.605 13.676.728 |
|
| Instruments at fair value through capital Deferred tax assets |
9 14 |
4.059.806 2.669.135 |
3.923.974 2.611.486 |
|
| Accounts receivable | Total non-current assets | 11 | 565.362 126.317.347 |
608.975 131.918.150 |
| CURRENT ASSETS: Inventories |
10 | 113.294.845 | 105.470.028 | |
| Accounts receivable Other debtors |
11 12 |
46.462.149 2.403.801 |
54.236.551 2.538.178 |
|
| Income tax receivable Other current assets |
20 13 |
246.268 3.710.046 |
262.011 3.380.652 |
|
| Cash and cash equivalents | Total current assets | 4 | 22.325.693 188.442.802 |
12.693.644 178.581.064 |
| Total assets | 314.760.149 | 310.499.214 | ||
| SHAREHOLDERS' EQUITY & LIABILITIES | ||||
| EQUITY: | ||||
| Share capital Legal reserve |
35.000.000 7.498.903 |
35.000.000 7.498.903 |
||
| Other reserves Net income for the period |
98.961.285 94.621 |
87.231.469 11.593.984 |
||
| Non-controlling interests | 15 16 |
141.554.809 1.453.467 |
141.324.356 1.514.227 |
|
| LIABILITIES: | Total equity | 143.008.276 | 142.838.583 | |
| NON-CURRENT LIABILITIES: Loans |
17 | 25.520.541 | 36.880.225 | |
| Pension Fund defined benefit plan liabilities Provisions |
22 23 |
9.476.000 972.515 |
9.476.000 944.772 |
|
| Deferred tax liabilities | Total non-current liabilities | 14 | 1.500.361 37.469.417 |
1.500.361 48.801.358 |
| CURRENT LIABILITIES: Loans |
17 | 30.766.139 | 7.353.166 | |
| Accounts payable Other creditors |
18 19 |
28.747.076 47.964.284 |
38.236.935 51.854.470 |
|
| Other current liabilities Pension Fund defined benefit plan liabilities |
Total current liabilities | 21 22 |
26.196.359 608.598 134.282.456 |
21.414.702 - 118.859.273 |
| Total liabilities | 171.751.873 | 167.660.631 | ||
| Total liabilities and shareholder' equity | 314.760.149 | 310.499.214 |
The notes to the financial statements integrate this statement at 30 June 2020.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS – President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS GISELA MARIA FALCÃO SOUSA PIRES PASSOS MATTHEW PETER HARRISON KATSUTOSHI NISHIMOTO
| Notes | 30/06/2020 | 30/06/2019 | |
|---|---|---|---|
| Operating Income: | |||
| Sales | 25 | 146.304.398 | 213.851.546 |
| Services rendered | 25 | 11.317.371 | 14.315.345 |
| Other operating income | 28 | 18.362.690 | 23.686.689 |
| Variation of products | 10 | (2.157.255) | 1.181.177 |
| Total operating income | 173.827.204 | 253.034.757 | |
| Operating expenses: | |||
| Cost of sales | 10 | (122.750.020) | (184.834.903) |
| External supplies and services | 26 | (19.524.391) | (23.425.907) |
| Payroll expenses | 27 | (17.243.691) | (21.002.023) |
| Depreciations and amortizations | 5, 6 and 8 | (10.790.890) | (11.471.536) |
| Provisions | 23 | (94.934) | 99.145 |
| Impairment losses | 23 | (684.537) | (923.996) |
| Other operating expenses | 28 | (1.272.595) | (1.532.599) |
| Total operating expenses | (172.361.058) | (243.091.819) | |
| Operational Income | 1.466.146 | 9.942.938 | |
| Expense and financial losses | 29 | (1.155.124) | (1.167.689) |
| Income and financial gains | 29 | 9.713 | 10.535 |
| Profit before taxation | 320.735 | 8.785.784 | |
| Income tax for the year | 24 | (286.631) | (2.338.835) |
| Net income for the period | 34.104 | 6.446.949 | |
| Net income for the period attributable to: | |||
| Equity holders of the parent | 94.621 | 6.391.195 | |
| Non-controlling interests | 16 | (60.517) | 55.754 |
| 34.104 | 6.446.949 | ||
| Earnings per share: | |||
| Basic | 36 | 0,001 | 0,184 |
| Diluted | 36 | 0,001 | 0,184 |
The notes to the financial statements integrate this statement for the six-month period ended at 30 June 2020.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS – President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS GISELA MARIA FALCÃO SOUSA PIRES PASSOS MATTHEW PETER HARRISON KATSUTOSHI NISHIMOTO
| Oth Res er erv es |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sh are |
Leg al |
Rev alu atio n |
Tra nsl atio n |
Fai lue r va |
Oth er |
Tot al |
Net | No ont roll ing n-c |
||||
| Not es |
Ca ital p |
Res erv e |
Res erv es |
Res erv es |
Res erv es |
Res erv es |
Res erv es |
fit Pro |
Su bto tal |
Int sts ere |
Tot al |
|
| Ba lan at 1 of Ja 20 19 ces nu ary |
35 .00 0.0 00 |
7.4 98 .90 3 |
6.1 95 .18 4 |
( 8) 1.6 95 .23 |
55 2.7 31 |
76 .06 1.5 68 |
88 .61 3.1 48 |
12. 78 6.7 59 |
136 .39 9.9 07 |
1.4 73 .22 2 |
137 .87 3.1 29 |
|
| Ch in t he iod ang es per : |
||||||||||||
| lica tio f th olid ate d n et i 20 18 Ap p n o e c ons nco me |
12. 786 9 .75 |
12. 786 9 .75 |
( 9) 12. 786 .75 |
|||||||||
| Av aila ble fo le f ina nci al a ts f air val cha r sa sse ue nge s |
9 | - | - | - | - | - 33 0.4 65 |
33 0.4 65 |
- 33 0.4 65 |
- | - 33 0.4 65 |
||
| - - |
- - |
- - |
- - |
33 0.4 65 |
- 12. 786 .75 9 |
13. 117 .22 4 |
- ( 9) 12. 786 .75 |
33 0.4 65 |
- - |
33 0.4 65 |
||
| Co lida ted t in for th erio d nso ne com e e p |
- | - | - | - | - | - | - | 11.5 93 .98 4 |
11.5 93 .98 4 |
52. 615 |
11.6 46 .59 9 |
|
| Co lida ted reh ive inc nso co mp ens om e |
- | - | - | - | 33 0.4 65 |
- | 33 0.4 65 |
11.5 93 .98 4 |
11.9 24 .44 9 |
52. 615 |
11.9 77. 064 |
|
| Tra ctio wit h e ity hol der nsa ns qu s |
||||||||||||
| Ac isit ion of ntr olli int sts qu non -co ng ere |
- | - | - | - | - | - | - | - | - | ( 10) 11.6 |
( 10) 11.6 |
|
| Dis trib ute d d ivid end s |
- | - | - | - | - | ( 0) 7.0 00 .00 |
( 0) 7.0 00 .00 |
- | ( 0) 7.0 00 .00 |
- | ( 0) 7.0 00 .00 |
|
| Ba lan at 31 of De be r 2 019 ces cem |
35 .00 0.0 00 |
7.4 98 .90 3 |
6.1 95 .18 4 |
( 8) 1.6 95 .23 |
88 3.1 96 |
81. 84 8.3 27 |
94 .73 0.3 72 |
11. 59 3.9 84 |
141 .32 4.3 56 |
1.5 14 .22 7 |
14 2.8 38 .58 3 |
|
| of Ba lan at 1 Ja 20 20 ces nu ary |
35 .00 0.0 00 |
7.4 98 .90 3 |
6.1 95 .18 4 |
( 8) 1.6 95 .23 |
88 3.1 96 |
81. 84 8.3 27 |
94 .73 0.3 72 |
11. 59 3.9 84 |
141 .32 4.3 56 |
1.5 14 .22 7 |
14 2.8 38 .58 3 |
|
| Ch in t he iod ang es per : |
||||||||||||
| Ap lica tio f th olid ate d n et i 20 19 p n o e c ons nco me |
- | - | - | - | - | 11.5 93 .98 4 |
11.5 93 .98 4 |
( 4) 11.5 93 .98 |
- | - | - | |
| fo le f ts f Av aila ble ina nci al a air val cha r sa sse ue nge s |
9 | - | - | - | - | 135 .83 2 |
- | 135 .83 2 |
- | 135 .83 2 |
- | 135 .83 2 |
| - | - | - | - | .83 2 135 |
93 .98 11.5 4 |
29. 816 11.7 |
( 4) 93 .98 11.5 |
.83 2 135 |
- | .83 2 135 |
||
| for Co lida ted t in th erio d nso ne com e e p Co lida ted reh ive inc |
- | - | - | - | - 135 .83 2 |
- | - 135 .83 |
94 .62 1 94 .62 |
94 .62 1 230 .45 3 |
( 7) 60 .51 ( 60 .51 |
34 .10 4 169 .93 6 |
|
| nso co mp ens om e |
- | - | - | - | - | 2 | 1 | 7) | ||||
| Tra ctio wit h e ity hol der nsa ns qu s |
||||||||||||
| isit ion of olli int Ac ntr sts qu non -co ng ere |
- | - | - | - | - | - | - | - | - | ( ) 243 |
( ) 243 |
|
| Dis trib ute d d ivid end s |
15 | - | - | - | - | - | - | - | - | - | - | - |
| of Ba lan at 30 Ju 20 20 ces ne |
35 .00 0.0 00 |
7.4 98 .90 3 |
6.1 95 .18 4 |
( 8) 1.6 95 .23 |
1.0 19. 02 8 |
93 .44 2.3 11 |
106 .46 0.1 88 |
94 .62 1 |
141 .55 4.8 09 |
1.4 53 .46 7 |
143 .00 8.2 76 |
|
The notes to the financial statements integrate this statement for the six-month period ended at 30 June 2020.
CHARTERED ACCOUNTANTALEXANDRA MARIA PACHECO GAMA JUNQUEIRA
BOARD OF DIRECTORS JOSE REIS DA SILVA RAMOS –President MARIA ANGELINA MARTINS CAETANO RAMOSSALVADOR ACÁCIO MARTINS CAETANOMIGUEL PEDRO CAETANO RAMOSGISELA MARIA FALCÃO SOUSA PIRES PASSOSMATTHEW PETER HARRISONKATSUTOSHI NISHIMOTO
| Notes | 30/06/2020 | 30/06/2019 | |
|---|---|---|---|
| Consolidated net income for the period, including non-controlling interests | 34.104 | 6.446.949 | |
| Components of other consolidated comprehensive income, | |||
| that could not be recycled by profit and loss: | |||
| Instruments at fair value through capital changes | 9 | 135.832 | 122.887 |
| Consolidated comprehensive income | 169.936 | 6.569.836 | |
| Attributable to: | |||
| Equity holders of the parent company | 230.453 | 6.514.082 | |
| Non-controlling interests | (60.517) | 55.754 | |
The notes to the financial statements integrate this statement for the six-month period ended at 30 June 2020.
CHARTERED ACCONTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS – President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS GISELA MARIA FALCÃO SOUSA PIRES PASSOS MATTHEW PETER HARRISON KATSUTOSHI NISHIMOTO
(Amounts in Euros)
| OPERATING ACTIVITIES | Jun-20 | Dec-19 | ||||
|---|---|---|---|---|---|---|
| Collections from Customers Payments to Suppliers Payments to Employees |
Operating Flow | 221.936.307 (196.924.461) (13.935.367) |
11.076.479 | 570.499.446 (471.202.261) (35.993.325) |
63.303.860 | |
| Payments of Income Tax Other Collections/Payments Related to Operating Activities |
(259.603) (7.625.980) |
(7.050.561) (12.797.985) |
||||
| Cash Flow from Operating Activities | 3.190.896 | 43.455.314 | ||||
| INVESTING ACTIVITIES | ||||||
| Collections from: Investments Properties Tangible Fixed Assets Interest and Other income |
- 3.269.724 8.361 |
3.278.085 | 284.000 3.140.426 28.499 |
3.452.925 | ||
| Payments to: Financial Investments Investments Properties Tangible Fixed Assets Intangible Assets |
(243) - (1.320.911) (13.346) |
(1.334.500) | - (444.769) (4.007.343) (289.371) |
(4.741.483) | ||
| Cash Flow from Investment Activities | 1.943.585 | (1.288.558) | ||||
| FINANCING ACTIVITIES | ||||||
| Collections from: Loans (Note 17) Leases |
52.433.008 - |
52.433.008 | 93.162.682 434.563 |
93.597.245 | ||
| Payments to: Loans (Note 17) Leases Interest and Other costs Dividends |
(42.410.358) (4.597.361) (936.749) (11.297) |
(47.955.765) | (122.400.000) (8.405.927) (2.465.234) (7.016.060) |
(140.287.221) | ||
| Cash Flow from Financing Activities | 4.477.243 | (46.689.976) | ||||
| CASH | ||||||
| Cash and Cash Equivalents at Beginning of Period (Note 4) Changes in perimeter |
12.530.961 - |
17.075.155 (20.974) |
||||
| Cash and Cash Equivalents at End of Period (Note 4) | 22.142.685 | 12.530.961 | ||||
| Net Flow in Cash Equivalents | 9.611.724 | (4.523.220) |
The notes to the financial statements integrate this statement for the six-month period ended at 30 June 2020.
CHARTERED ACCONTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS – President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS GISELA MARIA FALCÃO SOUSA PIRES PASSOS MATTHEW PETER HARRISON KATSUTOSHI NISHIMOTO
(Amounts in Euros)
Toyota Caetano Portugal, S.A. ("Toyota Caetano" or "Company") was incorporated in 1946, has its headquarters in Vila Nova de Gaia, and is the Parent Company of a Group of companies ("Toyota Caetano Group" or "Group"), which mainly develop economic activities included in the automotive sector, namely the import, assembly and commercialization of vehicles, bus and coach industry, sale and rental of industrial equipment forklifts, sale of vehicles parts, as well as the corresponding technical assistance, creation and operation of training projects and development of human resources, as well the management and rental of own properties, and rental of short or long-term vehicles, with or without driver.
Toyota Caetano Portugal, S.A., belongs to the Salvador Caetano Group (led by Grupo Salvador Caetano S.G.P.S., S.A.), being held directly by Salvador Caetano Auto, S.G.P.S., S.A., since the end of the year of 2016.
Toyota Caetano is the distributor of the brands Toyota, Lexus and BT in Portugal and is the head of a group of companies ("Toyota Caetano Group").
As of June 30, 2020, the companies of Toyota Caetano Group, their headquarters and abbreviations used, are as follows:
| Companies | Headquarters |
|---|---|
| With headquarters in Portugal: | |
| Toyota Caetano Portugal, S.A. | Vila Nova de Gaia |
| Caetano Renting, S.A. | Vila Nova de Gaia |
| Caetano Auto, S.A. | Vila Nova de Gaia |
Caetano Auto CV, S.A. Praia (Cape Verde)
Toyota Caetano shares are listed in Euronext Lisbon since October 1987.
The attached financial statements are stated in Euros (rounding by unit), as this is the functional currency used in the economic environment where the Group operates. Foreign operations and transactions are included in the consolidated financial statements in accordance with the policy described in Note 2.4.
(Amounts in Euros)
The six-month period ended at June 30, 2020 was mainly influenced by the effects of the COVID-19 pandemic. This event had a significant impact on the economy and mainly for the Toyota Caetano Portugal Group, as the automotive sector was one of the most sectors negatively affected by the pandemic.
Regarding vehicle sales, there was a significant decrease, which was directly reflected in the sale of vehicle parts. Vehicle production was also affected, due to Ovar facilities stoppage and customer order´s cancellation. The services rendered also decreased, as Showrooms and workshops were one of the activities temporarily closed in the pandemic period. However, the Group adopted measures to mitigate the effect of COVID-19, conducting the business to other ways of attracting the customers (use of digital media), as well as the adoption of measures to reduce expenses and to ensure the staff maintenance (layoff and "work from home").
Thus, and in compliance with required by applicable standard, the impacts on the main items of the consolidated financial statements are showed and detailed in the Management Report, prepared by the Board of Directors.
During this six-month period, the Group did not present treasury difficulties, being supported by available credit lines conceded by financial institutions. Thus, Management is convinced that the continuity of operations is guaranteed.
(Amounts in Euros)
The basis of presentation and main accounting policies adopted in the preparation of the consolidated financial statements are as follows:
Interim financial statements are presented in accordance with IAS 34 – "Interim Financial Reporting".
These interim financial statements, prepared in accordance with the above mentioned framework, do not include all the required information to be included in the annual consolidated financial statements. Therefore, they should be read along with the consolidated financial statements as of December 31, 2019.
Comparative information regarding December 31, 2019, included in consolidated financial statements was audited.
The accompanying consolidated financial statements have been prepared on a going concern basis and under the historical cost convention, except for some financial instruments which are stated at fair value, from the books and accounting records of the companies included in consolidation (Note 3).
The impact of the adoption of the new standards, amendments to standards and interpretations that became effective as of January 1, 2020:
(i) Standards:
shareholders. Optional 'concentration tests' for the assessment if one transaction is the acquisition of an asset or a business combination, are allowed. This amendment did not have any impact in the Group consolidated financial statements.
(Amounts in Euros)
Standards (new and amendments) that have been published and are mandatory for the accounting periods beginning on or after 1 June, 2020, but are not yet endorsed by the EU:
(i) Standards:
(Amounts in Euros)
(Amounts in Euros)
(Amounts in Euros)
The accompanying financial statements were prepared in accordance with the accounting policies disclosed in the notes to the consolidated financial statements as of December 31, 2019.
The Group's activity is exposed to a variety of financial risks, such as market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. These risks arise from the unpredictability of financial markets that affect the capacity of projected cash flows and profits subject to a perspective of long term ongoing. Management seeks to minimize potential adverse effects that derive from that uncertainty in its financial performance.
The financial risks management is controlled by Toyota Caetano financial department, according to the policies established by the Group Board of Directors. The Board of Directors has established the main principles of global risk management as well as specific policies for some areas, as interest rate risk and credit risk. As mentioned above, these principles and policies are properly described in the notes to the consolidated financial statements as of December 31, 2019.
In this context, we presented below some risk indicators as of June 30, 2020, considered particularly relevant:
i) Foreign currency risk
The Group operates internationally and has a subsidiary operating in Cape Verde. The group selects a functional currency for each subsidiary (Cape Verde Escudo, for the subsidiary Caetano Auto Cabo Verde, S.A.), corresponding to the currency of the economic environment and the ones that better represents its cash flows composition. Foreign currency risk arises mainly from future commercial transactions, as a result of purchases and sales of products and services in a different currency than the functional currency used by each Company.
The Group foreign currency risk management hedge policies are decided casuistically, considering the foreign currency and country specific circumstances (as of June 30, 2020 and December 31, 2019 and June 30, 2019, this situation is not applicable to any of the Group Subsidiaries).
Foreign currency risk related to the foreign subsidiaries financial statements translation, also named translation risk, presents the impact on net equity of the Holding Company, due to the translation of foreign subsidiaries financial statements.
Foreign subsidiaries assets and liabilities are translated into Euros using the exchange rates at statement of financial position date, and gains and losses of these entities are translated into Euros using the average exchange rate of the year. Resulting exchange differences are recorded in equity caption "Translation reserves".
The Group's assets and liabilities amounts (expressed in Euros) recorded in a different currency from Euro at June 30, 2020 and December 31, 2019 and June 30, 2019 can be summarized as follows:
| Assets | Liabilities | ||||||
|---|---|---|---|---|---|---|---|
| Jun-20 | Dec-19 | Jun-19 | Jun-20 | Dec-19 | Jun-19 | ||
| Cape Verde Escudo (CVE) Great Britain Pounds (GBP) Japanese Yen (JPY) |
6.464.432 - - |
6.183.612 - - |
6.746.542 - - |
2.025.130 - 1.335.214 |
1.528.665 31 399.992 |
1.952.524 31 1.364.938 |
The sensitivity of the Group to foreign exchange rate changes can be summarized as follows (increases/decreases):
| Jun-20 | Dec-19 | ||||
|---|---|---|---|---|---|
| Net | |||||
| Variation | Net Income | Equity | Income | Equity | |
| Great Britain Pounds (GBP) | 5% | - | - | (2) | - |
| Japanese yen (JPY) | 5% | (66.761) | - | (20.000) | - |
Concerning the sensitivity of variations in the exchange rate of the Cape Verde Escudo (CVE), the Group does not have associated currency risk, because the exchange rate defined does not change.
The group is exposed to the changing in raw material's prices used on production processes, namely auto parts. However, considering that the acquisition of those raw materials is not in accordance with a price quoted on an exchange market or formed on a volatile market, the price risk is not considered as being significant.
During 2020 and 2019, the Group has been exposed to the risk of variation of "Instruments at fair value through capital" prices. At June 30, 2020 and December 31, 2019 and June 30, 2019, the referred caption is composed only by shares of the closed property investment fund Cimóvel – Fundo de Investimento Imobiliário Fechado (Real Estate Investment Fund).
The Group's sensitivity to price variations in "instruments at fair value through capital" can be summarized as follows (increases/(decreases)):
| Jun-20 | Dec-19 | Jun-19 | |||||
|---|---|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | Net Income | Equity | |
| CIMOVEL FUND | 10% | - | 403.297 | - | 389.714 | - | 368.956 |
| CIMOVEL FUND | -10% | - | (403.297) | - | (389.714) | - | (368.956) |
Toyota Caetano debt is indexed to variable interest rates, exposing the total cost of debt to a high risk of volatility. The impact of this volatility on the Group's results and shareholders´ equity mitigated due to the effect of the following factors: (i) possible correlation between the market interest rate levels and economic growth, having a positive effect on the other lines of the Group's consolidated results (particularly operational), thus partially offsetting the increased financial costs ("natural hedge") and (ii) the availability of consolidated liquidity or cash, also remunerated at variable rates.
Toyota Caetano Board of Directors approves the terms and conditions of the funding, analyzing the debt structure, the inherent risks and the different options available in the market, particularly considering the type of interest rates (fixed / variable) and, permanently monitoring conditions and alternatives existing in the market, and decides upon the contracting of occasional interest rate hedging derivative financial instruments.
The sensitivity analyses presented below was based on exposure to changes in interest rates for financial instruments at the statement of financial position date. For floating rate liabilities, the analysis is prepared assuming the following:
The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some assumptions may be correlated.
| Group's sensitivity to changes in interest rates is summarized as follows | |||||
|---|---|---|---|---|---|
| (increases/(decreases)): |
| Jun-20 | Dec-19 | Jun-19 | |||||
|---|---|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | Net Income | Equity | |
| Guaranteed account | 0,25 p.p. | 25.000 | - | - | - | - | - |
| Bank Overdrafts | 0,25 p.p. | 458 | - | 407 | - | 4.617 | - |
| Commercial Paper | 0,25 p.p. | - | - | - | - | 90.000 | - |
| Long-term Bank Loan | 0,25 p.p. | 25.000 | - | 25.000 | - | 50.000 | - |
| Bond Loan | 0,25 p.p. | 31.250 | - | 31.250 | - | 62.500 | - |
| Total | 81.708 | - | 56.657 | - | 207.117 | - | |
| Guaranteed account | (0,25 p.p.) | (25.000) | - | - | - | - | - |
| Bank Overdrafts | (0,25 p.p.) | (458) | - | (407) | - | (4.617) | - |
| Commercial Paper | (0,25 p.p.) | - | - | - | - | (90.000) | - |
| Long-term Bank Loan | (0,25 p.p.) | (25.000) | - | (25.000) | - | (50.000) | - |
| Bond Loan | (0,25 p.p.) | (31.250) | - | (31.250) | - | (62.500) | - |
| Total | (81.708) | - | (56.657) | - | (207.117) | - | |
(Amounts in Euros)
iv) Liquidity risk
Liquidity risk is defined as the risk that the Group could not be able to settle or meet its obligations on time or at a reasonable price.
The existence of liquidity in the Group requires the definition of some parameters for the efficient and secure management of liquidity, enabling maximization of the return obtained and minimization of the opportunity costs relating to the liquidity.
Toyota Caetano Group liquidity risk management has a threefold objective:
All excess liquidity is applied in short-term debt amortization, according to economic and financial reasonableness criteria.
As of June 30, 2020 and December 31, 2019, the Group presents a net debt of 33.960.987 Euros and 31.539.747 Euros, respectively, divided between current and non-current loans (Note 17) and cash and cash equivalents (Note 4), agreed with the different financial institutions.
The Group has available credit facilities as of June 30, 2020 amounting to approximately 70 Million Euros, which can be used in future operational activities and to fulfil financial commitments (Note 17). There are no restrictions on the use of these facilities.
The main objective of the Board of Directors is to assure the continuity of the operations, providing an adequate remuneration to shareholders and the correspondent benefits to the rest of the stakeholders of the Group. For the prosecution of this objective it is fundamental that a careful management of
funds invested in the business is assured, trying to keep an optimal capital structure, in order to achieve the desired reduction of the cost of capital. With the purpose of maintaining or adjusting an adequate capital structure, the Board can propose to the General shareholders meeting the measures considered necessary.
The Group tries to maintain a level of equity considered adequate to the business characteristics, in order to assure continuity and expansion of the business. The capital structure balance is monitored through the financial leverage ratio (defined as net debt/ (net debt + equity)).
| Jun-20 | Dec-19 | Jun-19 | |
|---|---|---|---|
| Loans | 56.286.680 | 44.233.391 | 89.760.117 |
| Cash and cash equivalents | (22.325.693) | (12.693.644) | (10.187.677) |
| Net Debt | 33.960.987 | 31.539.747 | 79.572.440 |
| Equity | 143.008.276 | 142.838.583 | 137.438.696 |
| Leverage Ratio | 19,19% | 18,09% | 36,67% |
The gearing remains between acceptable levels, as established by management.
vi) Credit risk
The Group credit risk results mainly from:
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. Generally, the Group customers are not assigned a credit rating.
Credit risk is monitored by the Group financial department, under the supervision of the Board of Directors, based on: i) the rating assigned by the credit insurance company, with which the Group has negotiated a credit
insurance agreement; (ii) the debtors' corporate nature; iii) the type of transactions originating the accounts receivable; iv) the experience of past transactions; and (v) the credit limits established for each customer.
The Group considers the probability of default upon the initial recognition of the asset and, according to the occurrence of significant increases in credit risk continuously in each reporting period. In order to assess whether there has been a significant increase in credit risk, the Group compares the risk of default occurring by reference to the reporting date, with the risk of default assessed by reference to the date of initial recognition. Adequate and duly supported prospective information is considered. The following indicators are considered:
• 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 domestic credit model.
Irrespective of the above analysis, a significant increase in credit risk is presumed to exist if a debtor is in default by more than 30 days from the contractual payment date.
Default is deemed to exist when the counterparty fails to make contractual payments within 90 days of the invoice due date. When financial assets are derecognized, the Group continues to take the necessary measures to recover the amounts owed. In cases of successful recovery, the recovered amounts are recognized in the income statement for the year.
Financial assets are derecognized when there is no real expectation of recovery. The Group classifies a loan or account receivable to be derecognized when the debtor fails to make contractual payments within 30 days.
The Group uses the simplified approach to calculate and record the expected credit losses required by IFRS 9, which allows using estimated impairment losses for all "Accounts receivable" and "Other debtors". In order to measure expected credit losses, "Accounts receivable" and "Other debtors" were aggregated based on the shared credit risk characteristics, as well as on the days of delay. Impairment losses on June 30, 2020 and December 31, 2019 are determined as follows; the expected credit losses include information from prospective estimates. Accounts receivable ageing balances in Note 11.
The balances in "Loans granted to related parties" are considered to have a low credit risk and, therefore, impairment in credit losses recognized during the period are limited to expected credit losses estimated for 12 months. These financial assets are considered to have a "low credit risk" when they have a low irrecoverable risk and the debtor has a high capacity to meet its contractual cash flow liabilities in the short term.
Regarding independent dealership customers, the Group requires guarantees "on first demand", that, as disclosed in the notes to the consolidated financial statements of December 31, 2019, whenever these amounts are exceeded, these customers' supplies are suspended.
The impairments for accounts receivable are calculated considering (a) the client risk profile, (b) the average receipt time and (c) the client financial situation. The movements of these adjustments for the years ending at June 30, 2020 and 2019 are stated in Note 23.
(Amounts in Euros)
At June 30, 2020, the Group considers that there is no need for additional impairment losses, besides the amounts registered on those dates and stated, briefly, in Note 23.
The amount related to the accounts receivable and other debtors in consolidated financial statements, which is net of impairment losses, represents the maximum exposure of the Group to credit risk.
The following tables present, on June 30, 2019 and December 31,2019, the credit quality of bank deposits:
| Jun-20 | ||||||
|---|---|---|---|---|---|---|
| Deposits Long Term Rating | Rating Agency | Value | ||||
| A1 | Moody's | 35.337 | ||||
| A2 | Moody's | 2.579 | ||||
| A3 | Moody's | 245.945 | ||||
| Aa3 | Moody's | 25.096 | ||||
| B1 | Moody's | 462.437 | ||||
| B2 | Moody's | 256.247 | ||||
| Baa1 | Moody's | 7.037.562 | ||||
| Baa3 | Moody's | 11.765.721 | ||||
| Others without rating assigned | 2.377.818 | |||||
| Total | 22.208.741 | |||||
| Dec-19 | ||
|---|---|---|
| Deposits Long Term Rating | Rating Agency | Value |
| A2 | Moody's | 59.201 |
| A3 | Moody's | 181.963 |
| Aa3 | Moody's | 10.868 |
| B1 | Moody's | 485.101 |
| B2 | Moody's | 181.648 |
| B3 | Moody's | 517.954 |
| Baa1 | Moody's | 3.008.670 |
| Baa2 | Moody's | 68.385 |
| Baa3 | Moody's | 6.520.472 |
| Others without rating assigned | 1.536.614 | |
| Total | 12.570.876 |
The ratings presented correspond to ratings assigned by the Rating Agency Moody's.
(Amounts in Euros)
Exchange rates used in the conversion of foreign affiliated companies, as of June 30, 2020 and December 31, 2019 were as follows:
| Jun-20 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Final Exchange | Average Exchange |
Exchange Rate at the Date of |
Final Exchange | ||||||
| Currency | Rate for Jun-20 | Rate for Jun-20 | Incorporation | rate for Dec-19 | |||||
| Caetano Auto CV, S.A. | CVE | 0,009069 | 0,009069 | 0,009069 | 0,009069 | ||||
| Captions | Balance Sheet except Shareholders |
Income Statement | Share Capital | Retained Earnings |
| Dec-19 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Final Exchange | Average Exchange |
Exchange Rate at the Date of |
Final Exchange | ||||||
| Currency | Rate for Dec-19 | Rate for Dec-19 | Incorporation | rate for Dec-18 | |||||
| Caetano Auto CV, S.A. | CVE | 0,009069 | 0,009069 | 0,009069 | 0,009069 | ||||
| Captions | Balance Sheet except Shareholders |
Income Statement | Share Capital | Retained Earnings |
The affiliated companies included in consolidation by the full consolidation method and share of capital held as of June 30, 2020 and December 31, 2019, are as follows:
| Companies | Effective | ||
|---|---|---|---|
| Percentage Held | |||
| Jun-20 | Dec-19 | ||
| Toyota Caetano Portugal, S.A. | Parent Company | ||
| Caetano Auto CV, S.A. | 81,24% | 81,24% | |
| Caetano Renting, S.A. | 100,00% | 99,98% | |
| Caetano - Auto, S.A. | 98,43% | 98,43% |
(Amounts in Euros)
These subsidiaries were included in the consolidated financial statements using the full consolidation method, as established in IFRS 10 – "Consolidated Financial Statements" (subsidiary control through the major voting rights and exposure to variable returns in relevant activities).
As of June 30, 2020, December 31, 2019 and June 30, 2019, cash and cash equivalents detail were the following:
| Jun-20 | Dec-19 | Jun-19 | |
|---|---|---|---|
| Cash | 116.952 | 122.767 | 94.786 |
| Bank Deposits | 22.208.741 | 12.570.877 | 10.092.891 |
| 22.325.693 | 12.693.644 | 10.187.677 | |
| Bank Overdrafts (Note 17) | (183.008) | (162.683) | (923.301) |
| 22.142.685 | 12.530.961 | 9.264.376 | |
As of June 30, 2020 and December 31, 2019, the movement in tangible fixed assets, as well as in the respective accumulated depreciation and impairment losses, was as follows:
| Jun-20 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Land | Buildings and Other Constructions |
Machinery and Equipment |
Transport Equipment |
Administrative Equipment |
Other Fixed Assets |
Tangible assets in Progress |
Right-of use Assets |
Total | |
| Gross Assets: | |||||||||
| Opening Balances | 17.195.806 | 87.612.619 | 62.460.383 | 38.454.361 | 8.950.525 | 4.797.116 | 1.142.255 | 71.191.220 | 291.804.285 |
| Additions | - | 156.680 | 284.824 | 3.796.497 | 27.970 | 64.870 | 101.807 | 11.421.759 | 15.854.407 |
| Disposals and Write-offs | (183) | - | (6.269) | (4.312.146) | 169 | 267 | - | (872.359) | (5.190.521) |
| Inventories transfers | - | - | - | (7.846.624) | - | - | - | (4.017.643) | (11.864.267) |
| Transfer and reclassifications | - | 600.530 | (2.247) | - | - | (2.862) | (600.530) | - | (5.109) |
| Ending Balances | 17.195.623 | 88.369.829 | 62.736.691 | 30.092.088 | 8.978.664 | 4.859.391 | 643.532 | 77.722.977 | 290.598.795 |
| Accumulated Depreciation and Impairment losses: |
|||||||||
| Opening Balances | - | 64.066.808 | 58.138.994 | 16.443.832 | 7.528.716 | 4.325.527 | - | 31.280.803 | 181.784.680 |
| Depreciations | - | 1.133.901 | 423.381 | 2.543.823 | 106.174 | 50.752 | - | 6.218.007 | 10.476.038 |
| Disposals and Write-offs | - | - | (6.269) | (1.785.737) | 169 | (267) | - | (810.272) | (2.602.376) |
| Inventories transfers | - | - | - | (2.516.025) | - | - | - | (963.354) | (3.479.379) |
| Transfer and reclassifications | - | - | (46) | 9 | (9) | - | - | - | (46) |
| Ending Balances | - | 65.200.709 | 58.556.060 | 14.685.902 | 7.635.050 | 4.376.012 | - | 35.725.184 | 186.178.917 |
| Net Tangible Fixed Assets | 17.195.623 | 23.169.120 | 4.180.631 | 15.406.186 | 1.343.614 | 483.379 | 643.532 | 41.997.793 | 104.419.878 |
| (Amounts in Euros) | |
|---|---|
| Dec-19 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Land | Buildings and Other Constructions |
Machinery and Equipment |
Transport Equipment |
Administrative Equipment |
Other Fixed Assets |
Tangible assets in Progress |
Right-of use Assets |
Total | |
| Gross Assets: | |||||||||
| Opening Balances | 18.920.052 | 90.552.569 | 61.802.798 | 99.627.898 | 8.421.472 | 4.506.599 | 1.132.876 | - | 284.964.264 |
| Accounting policies changes | (1.805.867) | (5.406.201) | (103.432) | (57.225.580) | - | - | - | 66.626.071 | 2.084.991 |
| Additions | 81.621 | 1.441.169 | 857.538 | 44.416.374 | 537.451 | 290.829 | 1.034.796 | 5.628.537 | 54.288.315 |
| Disposals and Write-offs | - | - | (96.521) | (6.246.037) | (8.398) | (312) | - | (1.063.388) | (7.414.656) |
| Inventories transfer | - | - | - | (42.118.294) | - | - | - | - | (42.118.294) |
| Transfer and reclassifications | - | 1.025.082 | - | - | - | - | (1.025.417) | - | (335) |
| Ending Balances | 17.195.806 | 87.612.619 | 62.460.383 | 38.454.361 | 8.950.525 | 4.797.116 | 1.142.255 | 71.191.220 | 291.804.285 |
| Accumulated Depreciation and Impairment losses: |
|||||||||
| Opening Balances | - | 62.859.307 | 57.207.267 | 40.521.279 | 7.338.174 | 4.245.545 | - | - | 172.171.572 |
| Accounting policies changes | - | (914.486) | (2.694) | (20.228.768) | - | - | - | 21.145.948 | - |
| Depreciations | - | 2.121.987 | 1.030.943 | 10.010.948 | 198.940 | 80.235 | - | 11.119.904 | 24.562.957 |
| Disposals and Write-offs | - | - | (96.522) | (2.493.765) | (8.398) | (253) | - | (985.049) | (3.583.987) |
| Inventories transfer | - | - | - | (11.365.862) | - | - | - | - | (11.365.862) |
| Ending Balances | - | 64.066.808 | 58.138.994 | 16.443.832 | 7.528.716 | 4.325.527 | - | 31.280.803 | 181.784.680 |
| Net Tangible Fixed Assets | 17.195.806 | 23.545.811 | 4.321.389 | 22.010.529 | 1.421.809 | 471.589 | 1.142.255 | 39.910.417 | 110.019.605 |
The movements registered in item "Transport Equipment" mainly refer to vehicles and forklifts that are being used by the Group as well as being rented, under operating lease, to clients.
Management believes that a possible change (within a scenario of normal) in the main assumptions used in calculating the fair value will not result in impairment losses, apart from the loss already registered.
The accumulated impairment losses recorded as of June 30, 2020 and December 31, 2019 amounts to 150.000 Euros.
As of June 30, 2020 and December 31, 2019, the assets acquired through leases are presented as follows:
(Amounts in Euros)
| Fixed Tangible assets acquired | Jun-20 | Dec-19 | |||||
|---|---|---|---|---|---|---|---|
| through leases | Gross Assets | Accumulated Depreciation |
Net Tangible Assets |
Gross Assets | Accumulated Depreciation |
Net Tangible Assets |
|
| Santarém Stand | 1.400.000 | 333.375 | 1.066.625 | 1.400.000 | 320.250 | 1.079.750 | |
| Santarém Colisão | 235.000 | 16.450 | 218.550 | 235.000 | 14.688 | 220.312 | |
| Carnaxide Santa Maria da Feira |
3.246.231 670.950 |
659.391 33.547 |
2.586.840 637.403 |
3.246.231 670.950 |
628.957 27.258 |
2.617.274 643.692 |
|
| Caldas da Rainha | 936.837 | 43.914 | 892.923 | 936.837 | 35.131 | 901.706 | |
| Maia Colisão | 723.050 | 41.357 | 681.693 | 723.050 | 30.568 | 692.482 | |
| Workshop Equipment | 103.432 | 12.391 | 91.041 | 103.432 | 9.158 | 94.274 | |
| Industrial Equipment | 41.774.999 | 27.702.326 | 14.072.673 | 41.146.951 | 25.587.331 | 15.559.619 | |
| Transport Equipment | 21.407.181 | 4.947.475 | 16.459.706 | 20.643.779 | 3.330.040 | 17.313.740 | |
| TOTAL | 70.497.680 | 33.790.226 | 36.707.454 | 69.106.230 | 29.983.381 | 39.122.849 |
As of June 30, 2020, December 31, 2019 and June 30, 2019, the caption "Investment properties" refers to real estate assets held to obtain gains through its rental or for capital gain purposes. These real estate assets are recorded at acquisition cost.
Rentals related to "Investment properties" amounted to 1.410.670 Euros as the sixmonth period ended as of June 30, 2020 (1.503.095 Euros as of June 30, 2019) (Note 28).
Additionally, in according with appraisals reported to December 31, 2019, the fair value of those investment properties amounts to, approximately, 54 million Euros.
Management believes that a possible change (within a scenario of normal) in the main assumptions used in calculating the fair value will not result in impairment losses, beyond from losses recognized in previous years.
The real estate assets recorded in the caption "Investment properties" as of June 30, 2020 and December 31, 2019 is made up as follows:
(Amounts in Euros)
| Jun-20 | Dec-19 | |||||
|---|---|---|---|---|---|---|
| Location | Net accounting value |
Fair Value | Appraisal | Net accounting value |
Fair Value | Appraisal |
| Vila Nova de Gaia - Av. da República | 119.978 | 1.192.400 | Internal | 121.972 | 1.192.400 | Internal |
| Braga - Av. da Liberdade | - | 2.330.000 | External | - | 2.330.000 | External |
| Porto - Rua do Campo Alegre | 738.532 | 3.315.000 | Internal | 757.734 | 3.315.000 | Internal |
| Viseu - Teivas | 686.272 | 1.841.000 | External | 711.644 | 1.841.000 | External |
| Caldas da Rainha - Rua Dr. Miguel Bombarda | 17.531 | 85.000 | Internal | 17.531 | 85.000 | Internal |
| Viseu - Quinta do Cano | 1.699.562 | 1.625.750 | Internal | 1.704.237 | 1.625.750 | Internal |
| Amadora - Rua Elias Garcia | 172.371 | 149.000 | Internal | 174.100 | 149.000 | Internal |
| Portalegre - Zona Industrial | 170.962 | 173.000 | Internal | 173.533 | 173.000 | Internal |
| Portimão - Cabeço do Mocho | 524.781 | 550.000 | Internal | 524.781 | 550.000 | Internal |
| Rio Maior | 107.000 | 107.000 | Internal | 107.000 | 107.000 | Internal |
| Castelo Branco - Repair Shop | 700.034 | 1.100.000 | Internal | 719.734 | 1.100.000 | Internal |
| Teivas | 117.835 | 72.800 | External | 118.344 | 72.800 | External |
| Vila Nova de Gaia - Av. Vasco da Gama (A e B buildings) | 2.473.261 | 8.692.000 | Internal | 2.584.894 | 8.692.000 | Internal |
| Vila Nova de Gaia - Av. Vasco da Gama (G building) | 773.969 | 9.165.200 | External | 784.140 | 9.165.200 | External |
| Carregado - Quinta da Boa Água / Quinta do Peixoto | 4.937.154 | 23.120.000 | Internal | 4.951.364 | 23.120.000 | Internal |
| Vila Nova de Gaia - Rua das Pereiras | 222.762 | 788.000 | Internal | 225.721 | 788.000 | Internal |
| 13.462.004 | 54.306.150 | 13.676.728 | 54.306.150 | |||
The investment properties fair value disclosed in June 30, 2020 and December 31, 2019 was determined on an annual basis by an independent appraiser (the fair value was determined by the average of the evaluations by Market Method, Cost Method and Return Method).
In accordance to the classification of the evaluation methods mentioned above, and related with the fair value hierarchy (IFRS 13), they are classified as follows:
As of June 30, 2020 the values of the evaluation will be published at December 31, 2019 on the grounds that, given the generalized inexistence of major works in 2019 and 2020, the inexistence of relevant claims in 2019 and 2020 and the inexistence of properties in areas of accelerated degradation there will be no significant change to the fair value of these properties. The Management believes will not have been
(Amounts in Euros)
significant changes to the fair value of these buildings, believing they are still valid and current values of the last external evaluation carried out in 2012, 2013, 2014, 2015, 2016, 2017, 2018 and 2019.
The movement in the caption "Investment properties" as of June 30, 2020 and December 31, 2019 was as follows:
| Jun-20 | |||
|---|---|---|---|
| Gross Assets: | Land | Buildings | Total |
| Opening Balances | 8.995.216 | 35.252.218 | 44.247.434 |
| Ending Balances | 8.995.216 | 35.252.218 | 44.247.434 |
| Accumulated Depreciation and Impairment losses: | |||
| Opening Balances | - | 30.570.706 | 30.570.706 |
| Depreciations | - | 214.724 | 214.724 |
| Ending Balances | - | 30.785.430 | 30.785.430 |
| Net Investment Properties | 8.995.216 | 4.466.788 | 13.462.004 |
| Dec-19 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Assets: | Land | Buildings | Total | ||||||||
| Opening Balances | 9.305.659 | 35.408.776 | 44.714.435 | ||||||||
| Additions | - | 40.294 | 40.294 | ||||||||
| Disposals and Write-offs | (210.443) | (197.187) | (407.630) | ||||||||
| Transfer | (100.000) | 335 | (99.665) | ||||||||
| Ending Balances | 8.995.216 | 35.252.218 | 44.247.434 | ||||||||
| Accumulated Depreciation and Impairment Losses: | |||||||||||
| Opening Balances | - | 30.383.721 | 30.383.721 | ||||||||
| Depreciations | - | 437.677 | 437.677 | ||||||||
| Disposals and Write-offs | - | (150.692) | (150.692) | ||||||||
| Transfer | - | (100.000) | (100.000) | ||||||||
| Ending Balances | - | 30.570.706 | 30.570.706 | ||||||||
| Net value | 8.995.216 | 4.681.512 | 13.676.728 | ||||||||
The accumulated impairment losses recorded as of June 30, 2020 and December 31, 2019 amounts to 2.680.809 Euros.
(Amounts in Euros)
During the six-month period ended at June 30, 2020 and for the year ended at December 31, 2019 there were not any movements in item "Goodwill".
The item "Goodwill" is totally related to the amount calculated in the acquisition, in previous years, of the affiliate Movicargo whose business was transferred to the parent Toyota Caetano Portugal, S.A.
The Goodwill is not amortized. Impairment tests are made annually to the Goodwill. At June 30, 2020 there are no signs of impairment, so it was not necessary to carry out impairment tests.
As of June 30, 2020 and December 31, 2019, the movement in intangible assets, as well as in the respective accumulated amortization and accumulated impairment losses, was as follows:
| Jun-20 | ||||||
|---|---|---|---|---|---|---|
| Research and Development Expenses |
Industrial Property |
Goodwill | Computer Programs |
Intangible Assets in progress |
Total | |
| Gross Assets: | ||||||
| Opening Balances | 1.477.217 | 615.997 | 81.485 | 2.154.870 | 202.804 | 4.532.373 |
| Additions | 10.850 | - | - | 100.000 | 53.057 | 163.907 |
| Ending Balances | 1.488.067 | 615.997 | 81.485 | 2.254.870 | 255.861 | 4.696.280 |
| Accumulated Amortization and Impairment losses: |
||||||
| Opening Balances | 1.477.217 | 358.038 | 81.485 | 2.150.247 | - | 4.066.987 |
| Amortizations | - | 82.594 | - | 17.534 | - | 100.128 |
| Ending Balances | 1.477.217 | 440.632 | 81.485 | 2.167.781 | - | 4.167.115 |
| Net Intangible Assets | 10.850 | 175.365 | - | 87.089 | 255.861 | 529.165 |
(Amounts in Euros)
| Dec-19 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Research and Development Expenses |
Industrial Property |
Goodwill | Computer Programs |
Intangible Assets in progress |
Total | |||||||
| Gross Assets: | ||||||||||||
| Opening Balances | 1.477.217 | 551.031 | 81.485 | 2.150.170 | - | 4.259.903 | ||||||
| Additions | - | 64.965 | - | 5.200 | 202.804 | 272.969 | ||||||
| Changes in Perimeter | - | - | - | (500) | - | (500) | ||||||
| Ending Balances | 1.477.217 | 615.996 | 81.485 | 2.154.870 | 202.804 | 4.532.372 | ||||||
| Accumulated Amortization and Impairment losses: |
||||||||||||
| Opening Balances | 1.477.217 | 198.131 | 81.485 | 2.142.706 | - | 3.899.539 | ||||||
| Amortizations | - | 159.907 | - | 8.041 | - | 167.948 | ||||||
| Changes in Perimeter | - | - | - | (500) | - | (500) | ||||||
| Ending Balances | 1.477.217 | 358.038 | 81.485 | 2.150.247 | - | 4.066.987 | ||||||
| Net Intangible Assets | - | 257.958 | - | 4.623 | 202.804 | 465.385 | ||||||
During the period ended as of June 30, 2020, and December 31, 2019 and June 30, 2019 the movements in item "Instruments at fair value through capital" were as follows:
| Jun-20 | Dec-19 | Jun-19 | |
|---|---|---|---|
| Instruments at fair value through capital | |||
| Opening Balances | 3.923.974 | 3.633.413 | 3.633.413 |
| Decrease during the year | - | (39.904) | (39.904) |
| Increase/(decrease) in fair value | 135.832 | 330.465 | 122.887 |
| Ending Balances | 4.059.806 | 3.923.974 | 3.716.396 |
As of June 30, 2020, "Instruments at fair value through capital" include the amount of 4.032.974 Euros (June 30, 2019: 3.689.564 Euros) corresponding to 580.476 shares of Cimóvel - Real Estate Investment Fund (9,098%), which are recorded at its fair value at June 30, 2020 (the acquisition cost of those shares ascended to 3.013.947 Euros, with a reserve in equity (Fair Value Reserve – Instruments at fair value through capital) in the amount to 1.019.028 Euros). The remaining "Instruments at fair value through capital" refer to small investments in non-listed
(Amounts in Euros)
companies. The Board of Directors consider that the net accounting value is similar to its fair value.
Additionally, the impact in equity during the six-month period ended as of June 30, 2020 and 2019 from recording "Instruments at fair value through capital" at fair value can be summarized as follows:
| Jun-20 | Jun-19 | |
|---|---|---|
| Fair value variation | 135.832 | 122.887 |
| Effect on equity | 135.832 | 122.887 |
As of June 30, 2020, December 31, 2019 and June 30, 2019, this caption breakdown is as follows:
| Jun-20 | Dec-19 | Jun-19 | |
|---|---|---|---|
| Raw and subsidiary Materials | 14.202.235 | 6.772.894 | 7.867.671 |
| Production in Process | 1.132.615 | 763.239 | 985.273 |
| Finished and semi-finished Products | 36.283 | 2.567.925 | 2.371.507 |
| Merchandise | 101.791.045 | 98.814.645 | 98.534.186 |
| 117.162.178 | 108.918.703 | 109.758.637 | |
| Accumulated impairment losses in inventories (Note 23) | (3.867.333) | (3.448.675) | (2.813.619) |
| 113.294.845 | 105.470.028 | 106.945.018 | |
During the six-month period ended as of June 30, 2020 and 2019, cost of sales was as follows:
| Jun-20 | Jun-19 | ||||||
|---|---|---|---|---|---|---|---|
| Merchandise | Raw and subsidiary Materials |
Total | Merchandise | Raw and subsidiary Materials |
Total | ||
| Opening Balances | 98.814.645 | 6.772.894 | 105.587.539 | 90.219.827 | 8.885.206 | 99.105.033 | |
| Net Purchases | 105.894.489 | 15.397.005 | 121.291.494 | 156.109.236 | 20.731.834 | 176.841.070 | |
| Transfers to inventories | 11.864.267 | - | 11.864.267 | 15.290.657 | - | 15.290.657 | |
| Ending Balances | (101.791.045) | (14.202.235) | (115.993.280) | (98.534.186) | (7.867.671) | (106.401.857) | |
| Total | 114.782.356 | 7.967.664 | 122.750.020 | 163.085.534 | 21.749.369 | 184.834.903 | |
(Amounts in Euros)
During the six-month period ended as of June 30, 2020 and 2019, the variation in production was computed as follows:
| Jun-20 | Jun-19 | ||||||
|---|---|---|---|---|---|---|---|
| Finished and semi-finished |
Production in | Finished and semi finished |
Production | ||||
| Products | Process | Total | Products | in Process | Total | ||
| Ending Balances | 36.283 | 1.132.615 | 1.168.898 | 2.371.507 | 985.273 | 3.356.780 | |
| Inventories adjustments | - | 5.011 | 5.011 | - | (105) | (105) | |
| Opening Balances | (2.567.925) | (763.239) | (3.331.164) | (1.242.750) | (932.748) | (2.175.498) | |
| Total | (2.531.642) | 374.387 | (2.157.255) | 1.128.757 | 52.420 | 1.181.177 | |
As of June 30, 2020, December 31, 2019 and June 30, 2019, the detail of this caption was as follows:
| CURRENT ASSETS | NON-CURRENT ASSETS | ||||||
|---|---|---|---|---|---|---|---|
| Jun-20 | Dec-19 | Jun-19 | Jun-20 | Dec-19 | Jun-19 | ||
| Customers, current accounts | 45.167.705 | 52.716.981 | 74.234.031 | 565.362 | 608.975 | 705.764 | |
| Doubtful Accounts Receivable | 10.965.066 56.132.771 |
10.978.343 63.695.324 |
9.696.611 83.930.642 |
- 565.362 |
- 608.975 |
- 705.764 |
|
| Accumulated impairment losses in accounts Receivable (Note 23) | (9.670.622) 46.462.149 |
(9.458.773) 54.236.551 |
(8.963.990) 74.966.652 |
- 565.362 |
- 608.975 |
- 705.764 |
|
Accounts receivable from customers recorded as non-current assets corresponds to the customers of the affiliated company Caetano Auto, S.A. that are being paid under formal agreements (whose terms of payment may vary between 1 to 7 years, and which bear interests).
(Amounts in Euros)
| Jun-20 | ||||||
|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 26.876.735 | 2.881.867 | 1.823.140 | 8.106.198 | 39.687.940 | |
| Employees | 1.219 | - | - | 3.590 | 4.809 | |
| Independent Dealers | 5.756.202 | 103.628 | 92.717 | 87.771 | 6.040.318 | |
| Total | 32.634.156 | 2.985.495 | 1.915.857 | 8.197.559 | 45.733.067 | |
| Dec-19 | ||||||||
|---|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||||
| Accounts receivable | 36.836.276 | 2.029.986 | 2.110.790 | 4.720.187 | 45.697.240 | |||
| Employees | 14 | - | - | 4.430 | 4.444 | |||
| Independent Dealers | 7.596.637 | 20.771 | - | 6.864 | 7.624.272 | |||
| Total | 44.432.927 | 2.050.757 | 2.110.790 | 4.731.481 | 53.325.956 | |||
| Jun-20 | |||||||
|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |||
| Doubtful Accounts Receivable | 23.620 | 3.357 | 12.854 | 10.925.235 | 10.965.066 | ||
| Total | 23.620 | 3.357 | 12.854 | 10.925.235 | 10.965.066 | ||
| Dec-19 | |||||||
|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |||
| Doubtful Accounts Receivable | 116.219 | 102.497 | 26.244 | 10.733.383 | 10.978.343 | ||
| Total | 116.219 | 102.497 | 26.244 | 10.733.383 | 10.978.343 | ||
The amounts presented in the consolidated statement of financial position are net of accumulated impairment losses to doubtful accounts receivable estimated by the Group, in accordance with its experience based on its evaluation of the economic environment at the statement of financial position date. Credit risk concentration is limited, because the customers' basis is wider and not relational. Thus, the Board of
(Amounts in Euros)
Directors understands that the accounting values of accounts receivable are similar to their respective fair value.
| Jun-20 | |||||||
|---|---|---|---|---|---|---|---|
| Not Due | - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 11.910.723 | 18.379.088 | 3.123.090 | 1.901.092 | 10.419.074 | 45.733.067 | |
| Total | 11.910.723 | 18.379.088 | 3.123.090 | 1.901.092 | 10.419.074 | 45.733.067 | |
| Dec-19 | |||||||
|---|---|---|---|---|---|---|---|
| Not Due | - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 20.137.752 | 24.124.247 | 1.732.833 | 1.280.080 | 6.051.043 | 53.325.956 | |
| Total | 20.137.752 | 24.124.247 | 1.732.833 | 1.280.080 | 6.051.043 | 53.325.956 | |
As of June 30, 2020, December 31, 2019 and June 30, 2019, the detail of this caption was as follows:
| Current Assets | ||||
|---|---|---|---|---|
| Jun-20 | Dec-19 | Jun-19 | ||
| Down Payments to Suppliers | 62.452 | 36.402 | 103.621 | |
| Public Entities (VAT) | - | - | 39.361 | |
| Other debtors | 2.341.349 | 2.501.776 | 2.618.207 | |
| 2.403.801 | 2.538.178 | 2.761.189 | ||
Additionally, this caption ("Other debtors") includes, as of June 30, 2020 and 2019 the amount of, approximately, 800.000 Euros to be received from Salvador Caetano Auto Africa, S.G.P.S., S.A. (800.000 Euros as of December 31, 2019).
It is noted that this amount also includes as of June 30, 2020 an account receivable in the amount of 652.907 Euros from the related party Fundação Salvador Caetano (649.625 Euros as of December 31, 2019).
(Amounts in Euros)
As of June 30, 2020, December 31, 2019 and June 30, 2019, the detail of this caption was as follows:
| Jun-20 | Dec-19 | Jun-19 | |
|---|---|---|---|
| Accrued Income | |||
| Commission | 231.986 | 620.339 | 102.048 |
| Rappel | 668.545 | 1.095.844 | 593.143 |
| Warranty claims | 65.257 | 80.066 | 135.882 |
| Fleet programs and Bonus suppliers | 138.653 | 435.273 | 760.998 |
| Assignment of staff | 16.200 | 31.173 | 49.114 |
| Fee's | 5.009 | 2.795 | 3.002 |
| Training subsidy | 329.000 | - | - |
| Lay-off support | 535.940 | - | - |
| Others | 746.016 | 357.586 | 869.637 |
| 2.736.607 | 2.623.076 | 2.513.824 | |
| Deferred expenses | |||
| Insurance | 111.254 | 164.588 | 187.789 |
| Rentals | 153.187 | 6.154 | 124.739 |
| Interest | 113.988 | 130.459 | 139.364 |
| Others | 595.009 | 456.375 | 838.115 |
| 973.438 | 757.576 | 1.290.007 | |
| Total | 3.710.046 | 3.380.652 | 3.803.831 |
(Amounts in Euros)
The detail and movements of deferred tax assets and liabilities recorded in the accompanying consolidated financial statements as of June 30, 2020 and December 31, 2019 is as follows:
| Jun-20 | |||
|---|---|---|---|
| Dec-19 | Profit and Loss Impact |
Jun-20 | |
| Deferred tax assets: | |||
| Provisions not accepted for tax purpose Defined Benefit Plan Liabilities Write-off margins of tangible assets/inventories |
352.913 1.611.745 646.828 2.611.486 |
- - 57.649 57.649 |
352.913 1.611.745 704.477 2.669.135 |
| Deferred tax liabilities: | |||
| Depreciation as a result of legal and free revaluation of fixed assets Effect of the reinvestments of the surplus in fixed assets sales Fair value of fixed assets |
(531.552) (70.077) (898.732) (1.500.361) |
- - - - |
(531.552) (70.077) (898.732) (1.500.361) |
| Net effect (Note 24) | 57.649 |
| Dec-19 | |||
|---|---|---|---|
| Dec-18 | Profit and Loss Impact |
Dec-19 | |
| Deferred tax assets: | |||
| Provisions not accepted for tax purpose | 296.439 | 56.474 | 352.913 |
| Defined Benefit Plan Liabilities | 1.611.745 | 1.611.745 | |
| Write-off margins of tangible assets/inventories | 926.746 | (279.918) | 646.828 |
| 2.834.930 | (223.444) | 2.611.486 | |
| Deferred tax liabilities: | |||
| Depreciation as a result of legal and free revaluation of fixed | |||
| assets | (590.517) | 58.965 | (531.552) |
| Effect of the reinvestments of the surplus in fixed assets sales | (113.367) | 43.290 | (70.077) |
| Fair value of fixed assets | (898.732) | - | (898.732) |
| (1.602.616) | 102.255 | (1.500.361) | |
| Net effect (Note 24) | (121.189) |
At June 30, 2020 and 2019 the Group there was no tax losses.
(Amounts in Euros)
As of June 30, 2020 and 2019 tax rates used to compute current and deferred tax assets and liabilities were as follows:
| Tax rates | ||||
|---|---|---|---|---|
| Jun-20 | Jun-19 | |||
| Country of origin of affiliate: | ||||
| Portugal | 22,5% - 21% | 22,5% - 21% | ||
| Cape Verde | 25,5% | 25,5% |
Toyota Caetano Group companies with head office in Portugal, are taxed according to the Corporate Income Tax (CIT) in accordance with the Special Taxation Regimen for Groups of Companies ("Regime Especial de Tributação de Grupos de Sociedades - RETGS") as established by articles 69 and 70 of the CIT.
In accordance with the applicable legislation, the income tax returns of Toyota Caetano and other Group companies with headquarters in Portugal are subject to review and correction by the tax authorities for a period of four years. Therefore, the tax declarations since the year of 2017 and 2020 are still subject to review. Statements regarding the Social Security may be revised over a period of five years. The Board of Directors believe that the corrections that may arise from such reviews/inspections will not have a significant impact in the accompanying consolidated financial statements.
Under the terms of article 88 of the Corporate Income Tax Code, the companies with headquarters in Portugal are additionally subject to an income tax over a set of expenses at the rates foreseen in the above mentioned article.
As of June 30, 2020, the Company's share capital, fully subscribed and paid for, consisted of 35.000.000 bearer shares, fully subscribed and paid for, with a nominal value of 1 Euro each.
The entities with over 20% of subscribed capital are as follows:
| - Salvador Caetano – Auto – S.G.P.S., S.A. | 69,73% |
|---|---|
| - Toyota Motor Europe NV/SA | 27,00% |
(Amounts in Euros)
In 2020, Salvador Caetano-Auto - S.G.P.S., S.A. acquired 468.931 shares with a nominal value of 1 Euro each, fully paid up and representing 1,34% of the share capital.
According to the General shareholders meeting deliberation, as of April 29, 2020, and given the current economic situation, it was decided not to distribute dividends to shareholders, waiting for a better opportunity for their realization.
Commercial legislation establishes that at least 5% of the net profit of each year must be appropriated to a legal reserve until this reserve equals the statutory minimum requirement of 20% of the share capital. This reserve is not available for distribution, except in case of dissolution of the Company, but may be used in share capital increases or used to absorb accumulated losses once other reserves have been exhausted.
The revaluation reserves cannot be distributed to the shareholders, except if they are completely depreciated and if the respective assets that were revaluated have been alienated.
The translation reserves reflect the currency variations during the passage of the financial statements of affiliated companies in a currency other than Euro and cannot be distributed or used to absorb losses.
The fair value reserves reflect the fair value variations of the "instruments at fair value through capital" and cannot be distributed or used to absorb losses (Note 9).
(Amounts in Euros)
Refer to reserves with nature of free reserve that can be distributable according to the commercial legislation.
According to the Portuguese law, the amount of distributable reserves is determined according to the individual financial statements of Toyota Caetano Portugal, presented according to the International Financial Reporting Standard (IFRS).
Movements in this caption during the period ended as of June 30, 2020, December 31, 2019 and June 30, 2019 were as follows:
| Jun-20 | Dec-19 | Jun-19 | |
|---|---|---|---|
| Opening Balances as of January 1 | 1.514.227 | 1.473.222 | 1.473.222 |
| Acquisition of non-controlling interests | (243) | (11.610) | (4.269) |
| Net profit attributable to non-controlling interests | (60.517) | 52.615 | 55.754 |
| 1.453.467 | 1.514.227 | 1.524.707 | |
As of June 30, 2020 and December 31, 2019, the decomposition of the mentioned value by subsidiary company is as follows:
| Jun-20 | |||
|---|---|---|---|
| % NCI | Non-controlling Interests |
Net profit attributable to Non-controlling Interests |
|
| Caetano Auto CV Caetano Auto |
18,76% 1,57% |
821.556 631.911 1.453.467 |
(41.643) (18.874) (60.517) |
| Dec-19 | |||
|---|---|---|---|
| % NCI | Non-controlling Interests |
Net profit attributable to Non-controlling Interests |
|
| Caetano Auto CV Caetano Auto |
18,76% 1,57% |
863.200 651.027 |
25.093 27.522 |
| 1.514.227 | 52.615 |
(Amounts in Euros)
The resume of financial information at June 30, 2020 related to each subsidiary that is consolidated is presented below:
| Caetano Auto | Caetano Auto CV | ||||
|---|---|---|---|---|---|
| Caption | Jun-20 | Dec-19 | Jun-20 | Dec-19 | |
| Non - Current Assets | 60.708.713 | 59.516.127 | 1.289.918 | 1.319.976 | |
| Current Assets | 62.061.342 | 67.238.194 | 5.174.514 | 4.863.635 | |
| Total assets | 122.770.055 | 126.754.321 | 6.464.432 | 6.183.611 | |
| Non - Current Liabilities | 7.287.822 | 7.599.200 | 98.878 | 98.878 | |
| Current Liabilities | 75.442.318 | 77.801.154 | 1.926.252 | 1.527.813 | |
| Equity | 40.039.915 | 41.353.967 | 4.439.302 | 4.556.920 | |
| Revenues | 78.672.624 | 238.232.286 | 4.958.977 | 14.208.584 | |
| Operating Results | (1.153.345) | 2.627.412 | (215.645) | 212.638 | |
| Financial Results | (38.479) | 13.287 | - | - | |
| Taxes | 145.932 | (762.264) | 32.398 | (185.328) | |
| Net Income | (1.045.892) | 1.878.435 | (183.247) | 27.310 |
As of June 30, 2020, December 31, 2019 and June 30, 2019 the caption "Loans" was as follows:
| Jun-20 | Dec-19 | Jun-19 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Current | Non-Current | TOTAL | Current | Non-Current | TOTAL | Current | Non-Current | TOTAL | |
| Bank Loan | 20.000.000 | 20.000.000 | 10.000.000 | 10.000.000 | 18.000.000 | 10.000.000 | 28.000.000 | ||
| Bank Overdrafts | 183.008 | - | 183.008 | 162.681 | - | 162.681 | 923.301 | - | 923.301 |
| Bond Loan | - | 12.500.000 | 12.500.000 | - | 12.500.000 | 12.500.000 | - | 12.500.000 | 12.500.000 |
| Leases | 10.583.131 | 13.020.541 | 23.603.672 | 7.190.485 | 14.380.225 | 21.570.710 | 26.992.625 | 21.344.191 | 48.336.816 |
| 30.766.139 | 25.520.541 | 56.286.680 | 7.353.166 | 36.880.225 | 44.233.391 | 45.915.926 | 43.844.191 | 89.760.117 | |
The movement occurred in bank loans, bank overdrafts, other loans, commercial paper programs and bond loan during the six-month period ended at June 30, 2019 and fot the year ended at December 31, 2019 were as follows:
(Amounts in Euros)
| Jun-20 | Opening Balances | Increase | Decrease | Other Variations (*) |
|
|---|---|---|---|---|---|
| Bank Loan | 10.000.000 | - | - | - | 10.000.000 |
| Bank Overdrafts | 160.358 | 183.008 | 160.358 | - | 183.008 |
| Guaranteed Account | - | 13.250.000 | 3.250.000 | - | 10.000.000 |
| Commercial Paper | - | 39.000.000 | 39.000.000 | - | - |
| Bond Loan | 12.500.000 | - | - | - | 12.500.000 |
| Leases | 21.570.708 | - | 4.597.361 | 6.630.325 | 23.603.672 |
| 44.231.066 | 52.433.008 | 47.007.719 | 6.630.325 | 56.286.680 |
| Accounting policies | ||||||
|---|---|---|---|---|---|---|
| Dec-19 | Opening Balances | Increase | changes IFRS16 | Decrease | Other variations (*) | Ending Balance |
| Bank Loan | 10.000.000 | - | - | - | - | 10.000.000 |
| Bank Overdrafts | 923.669 | 162.681 | - | - | (923.669) | 162.681 |
| Car Financing | 2.499.961 | - | - | - | (2.499.961) | - |
| Guaranteed account | 10.000.000 | 10.000.000 | - | 20.000.000 | - | - |
| Commercial paper | 19.400.000 | 83.000.000 | - | 102.400.000 | - | - |
| Bond Loan | 12.500.000 | - | - | - | - | 12.500.000 |
| Leases | 35.680.425 | 434.568 | 2.084.991 | 8.405.927 | (8.223.348) | 21.570.710 |
| 91.004.055 | 93.597.249 | 2.084.991 | 130.805.927 | (11.646.978) | 44.233.391 |
(*) Without impact on consolidated cash flows statement
The amounts presented in "Other Variations" are related to lease-backs for forklifts recorded on Tangible Fixed Assets. This acquisitions results on an increase in liabilities, but without an immediate impact on Group cash flows.
As of June 30, 2020 and December 31, 2019, the detail of bank loans, overdrafts, other loans and Commercial Paper Programs, as well as its conditions, were as follows:
(Amounts in Euros)
| Jun-20 | ||||
|---|---|---|---|---|
| Description/Beneficiary Company | Used Amount | Limit | Beginning Date |
Date-Limit |
| 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 account | 10.000.000 | 10.000.000 | 22/04/2020 | 3 months |
| Mutual Loans | ||||
| Toyota Caetano Portugal | 10.000.000 | 10.000.000 | 11/03/2016 | 5 years |
| Bank Overdrafts | 183.008 | 1.500.000 | ||
| Confirming | - | 4.350.000 | ||
| Commercial Paper: | ||||
| Toyota Caetano Portugal | - | 14.000.000 | 27/02/2020 | 5 years |
| Toyota Caetano Portugal | - | 10.000.000 | 18/08/2015 | 5 years |
| Toyota Caetano Portugal | - | 4.000.000 | 17/07/2017 | 5 years |
| Toyota Caetano Portugal | - | 4.000.000 | 10/11/2016 | 5 years |
| 20.183.008 | 57.850.000 | |||
| 32.683.008 | 70.350.000 | |||
| Dec-19 | ||||
|---|---|---|---|---|
| Description/Beneficiary Company | Used Amount | Limit | Beginning Date |
Date-Limit |
| Non-current | ||||
| Mutual Loans | ||||
| Toyota Caetano Portugal | 10.000.000 | 10.000.000 | 11/03/2016 | 5 years |
| Bond Loan | ||||
| Toyota Caetano Portugal | 12.500.000 | 12.500.000 | 09/08/2018 | 5 years |
| 22.500.000 | 22.500.000 | |||
| Current | ||||
| Guaranteed account | - | 12.000.000 | ||
| Bank Overdrafts | 162.681 | 5.500.000 | ||
| Confirming | - | 4.350.000 | ||
| Commercial Paper: | ||||
| Toyota Caetano Portugal | - | 14.000.000 | 27/02/2017 | 3 years |
| Toyota Caetano Portugal | - | 10.000.000 | 18/08/2015 | 5 years |
| Toyota Caetano Portugal | - | 4.000.000 | 17/07/2017 | 5 years |
| Toyota Caetano Portugal | - | 5.000.000 | 10/11/2016 | 5 years |
| Toyota Caetano Portugal | - | 4.000.000 | 24/02/2018 | 1 year |
| 162.681 | 58.850.000 | |||
| 22.662.681 | 81.350.000 | |||
Interests relating to the financial instruments mentioned above are indexed to Euribor (floor zero), plus a spread which varies between 0,75% and 2,0%.
The Group and its affiliates have available credit facilities as of June 30, 2020 amounting to approximately 70 Million Euros, which can be used in future operational activities and to fulfil financial commitments. There are no restrictions on the use of these facilities. This amount is applied in several financial institutions and there is no excessive concentration in any of them.
The item "Leases" (current and non-current) is related to the Group's responsibilities as lessee with respect to the right to use facilities and equipment. The detail of this caption, as well as the reimbursement plan can be summarized as follows:
(Amounts in Euros)
| Current | Non current | |||||||
|---|---|---|---|---|---|---|---|---|
| Contract | Leases | 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | TOTAL | TOTAL |
| 2028278 | Commercial facilities | |||||||
| Capital | 99.002 | 69.453 | - | - | - | 69.453 | 168.455 | |
| Interests | 924 | 182 | - | - | - | 182 | 1.106 | |
| 5653 | Commercial facilities | |||||||
| Capital | 25.189 | 25.582 | 25.982 | 26.387 | 303.546 | 381.497 | 406.686 | |
| Interests | 6.125 | 5.732 | 5.333 | 4.927 | 24.500 | 40.492 | 46.617 | |
| 626064 | Commercial facilities | |||||||
| Capital | 181.547 | 188.004 | 194.690 | 245.044 | 627.738 | 809.285 | ||
| Interests | 24.829 | 18.372 | 11.685 | 4.634 | 34.691 | 59.520 | ||
| 2032103 | Commercial facilities | |||||||
| Capital | 9.563 | 49.347 | - | - | - | 49.347 | 58.910 | |
| Interests | 2.728 | 1.832 | - | - | - | 1.832 | 4.560 | |
| 30000343 | Commercial facilities | |||||||
| Capital | 42.857 | 43.722 | 44.605 | 45.505 | 323.208 | 457.040 | 499.897 | |
| Interests | 9.607 | 8.741 | 7.859 | 6.959 | 21.442 | 45.001 | 54.608 | |
| 2017554 | Commercial facilities | |||||||
| Capital | 165.687 | - | - | - | - | - | 165.687 | |
| Interests | 3.348 | - | - | - | - | - | 3.348 | |
| 105149 | Commercial facilities | |||||||
| Capital | 33.937 | - | - | - | - | - | 33.937 | |
| Interests | 566 | - | - | - | - | - | 566 | |
| Cimóvel | ||||||||
| Capital | 5.278.308 | - | - | - | - | - | 5.278.308 | |
| Several | ||||||||
| Capital | 12.031 | - | - | - | - | - | 12.031 | |
| Several | Industrial Equipment | |||||||
| Capital | 4.735.010 | 5.069.242 | 3.308.138 | 1.916.615 | 1.141.471 | 11.435.466 | 16.170.476 | |
| Interests | 369.192 | 230.461 | 123.733 | 54.242 | 14.279 | 422.714 | 791.906 | |
| Total Capital | 10.583.131 | 5.445.350 | 3.573.415 | 2.233.551 | 1.768.225 | 13.020.541 | 23.603.672 | |
| Total Interests | 417.319 | 265.320 | 148.610 | 70.762 | 60.221 | 544.912 | 962.231 |
(Amounts in Euros)
Loans
| Jun-20 | ||||||||
|---|---|---|---|---|---|---|---|---|
| 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | Total | |||
| Loan - mutual contract and Guaranteed Account | 20.000.000 | - | - | - | - | 20.000.000 | ||
| Bond Loan | - | - | - | 12.500.000 | - | 12.500.000 | ||
| Bank Overdrafts | 183.008 | - | - | - | - | 183.008 | ||
| Leases | 10.583.131 | 5.445.350 | 3.573.415 | 2.233.551 | 1.768.225 | 23.603.672 | ||
| Total Loans | 30.766.139 | 5.445.350 | 3.573.415 | 14.733.551 | 1.768.225 | 56.286.680 | ||
| Dec-19 | ||||||
|---|---|---|---|---|---|---|
| 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | Total | |
| Mutual Loans | - | 10.000.000 | - | - | - | 10.000.000 |
| Bond Loan | - | - | - | - | 12.500.000 | 12.500.000 |
| Bank Overdrafts | 162.681 | - | - | - | - | 162.681 |
| Leases | 7.190.485 | 5.311.768 | 4.116.145 | 2.436.914 | 2.515.398 | 21.570.710 |
| Total Loans | 7.353.166 | 15.311.768 | 4.116.145 | 2.436.914 | 15.015.398 | 44.233.391 |
Interests
| Jun-20 | |||||||
|---|---|---|---|---|---|---|---|
| 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | Total | ||
| Loan - mutual contract | 168.729 | - | - | - | - | 168.729 | |
| Leases | 417.319 | 265.320 | 148.610 | 70.762 | 60.221 | 962.231 | |
| Bond Loan | 316.840 | 316.840 | 316.840 | 157.118 | - | 1.107.639 | |
| Total interests | 902.888 | 582.160 | 465.450 | 227.880 | 60.221 | 2.238.599 | |
| Dec-19 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | Total | ||||
| Mutual Loans | 226.208 | 55.625 | - | - | - | 281.833 | |||
| Bond Loan Leases |
318.576 426.455 |
315.972 281.074 |
316.840 166.296 |
316.840 86.260 |
- 70.720 |
1.268.229 1.030.805 |
|||
| Total interests | 971.240 | 652.671 | 483.137 | 403.100 | 70.720 | 2.580.868 | |||
(Amounts in Euros)
As of June 30, 2020, December 31, 2019 and June 30, 2019 this caption was composed of current accounts with suppliers, which end at short term.
The Group, relating to financial risk management, has implemented policies to ensure that all liabilities are paid for within the defined payment period.
As of June 30, 2020, December 31, 2019 and June 30, 2019 the detail of other creditors was as follows:
| Current Liabilities | |||
|---|---|---|---|
| Jun-20 | Dec-19 | Jun-19 | |
| Income Taxes withheld | 453.062 | 412.651 | 476.534 |
| Value Added Taxes | 10.576.525 | 11.686.476 | 14.455.635 |
| Vehicles Tax | 1.184.755 | 2.149.151 | 2.265.501 |
| Custom Duties | - | - | 3.315 |
| Employee's social contributions | 632.066 | 708.501 | 850.804 |
| Taxes of local Authorities | 198.883 | 177.019 | 247.207 |
| Others | 5.010 | 6.723 | 9.388 |
| Public Entities: Sub-total | 13.050.301 | 15.140.521 | 18.308.384 |
| Shareholders | 20.194 | 20.194 | 20.291 |
| Advances from Customers | 1.001.234 | 1.063.582 | 986.425 |
| Other Creditors | 33.892.555 | 35.630.173 | 10.700.960 |
| Other Creditors: Sub-total | 34.913.983 | 36.713.949 | 11.707.676 |
| 47.964.284 | 51.854.470 | 30.016.060 | |
In certain situations, the Group obtain credits from the brand's financial entities, in order to obtain the necessary funds to support the stock of vehicles for the levels of activities developed. The amounts owed to these entities are included in the caption "Other creditors" and amounts to 33.252.753 Euros as of 30 June 2020 (34.786.879 Euros as of December 31, 2019 and 9.849.123 Euros as of June 30, 2019).
There are no debts related to public entities (State and Social Security).
(Amounts in Euros)
As of June 30, 2020, December 31, 2019 and June 30, 2019 the caption "Income tax" can be summarized as follows:
| Jun-20 | Dec-19 | Jun-19 | |
|---|---|---|---|
| Current Assets Public Entities: |
|||
| Income Tax Receivable | 246.268 | 262.011 | - |
| 246.268 | 262.011 | - | |
| Current Liabilities Public Entities: Income Tax Payable |
- - |
- - |
1.008.189 1.008.189 |
As of June 30, 2020, December 31, 2019 and June 30, 2019 the caption "Other Current Liabilities" was as follows:
| Jun-20 | Dec-19 | Jun-19 | |
|---|---|---|---|
| Accrued Cost | |||
| Vacation pay and bonus | 8.256.410 | 6.049.904 | 8.407.089 |
| Advertising Campaigns | 1.684.800 | 1.392.856 | 1.847.997 |
| Specialization cost assigned to vehicles sold | 2.545.519 | 440.852 | 1.625.624 |
| Warranty claims | - | - | 896.736 |
| Advance External Supplies and Services | 817.454 | 600.851 | 1.210.055 |
| Commission | 1.329.393 | 1.020.731 | 1.391.345 |
| Rappel charges attributable to fleet managers | 184.567 | 448.447 | 530.870 |
| Accrual for Vehicles Tax | 839.321 | 773.973 | 712.490 |
| Insurance | 147.654 | 280.273 | 289.391 |
| Municipal Property Tax | 142.480 | 116.000 | 142.331 |
| Interest | 134.445 | 139.720 | 136.752 |
| Royalties | - | 68.816 | 140.164 |
| Specialized work | 219.197 | - | 91.620 |
| Supply costs | 4.293 | 541.486 | 673.249 |
| Others | 2.056.642 | 1.607.063 | 2.064.226 |
| 18.362.175 | 13.480.972 | 20.159.939 | |
| Deferred Income | |||
| Vehicle maintenance contracts | 7.299.329 | 7.511.764 | 7.415.869 |
| Subsidy granted | 26.449 | 26.449 | 28.653 |
| Advertising recovery | - | 26.711 | 27.997 |
| Interest Charged to Customers | 13.446 | 20.256 | 27.061 |
| Bonuses by suppliers | - | - | 869.925 |
| Others | 494.960 | 348.550 | 207.014 |
| 7.834.184 | 7.933.730 | 8.576.519 | |
| Total | 26.196.359 | 21.414.702 | 28.736.458 |
(Amounts in Euros)
Toyota Caetano (together with other associated and related companies) incorporated by public deed dated December 29, 1988, the Salvador Caetano Pension Fund, which was subsequently updated in February 2, 1994, in April 30,1996, in August 9, 1996, in July 4, 2003, in February 2, 2007, in December 30, 2008, December 23, 2011 and in December 31, 2013.
As of June 30, 2020, the following companies of Toyota Caetano Group were associates of the Salvador Caetano Pension Fund:
The Pension Fund was set up to, while Toyota Caetano Group maintains the decision to make contributions to the referred fund, provide employees (beneficiaries), at their retirement date, the right to a pension complement, which is not subject to update and is based on a percentage of the salary, among other conditions. To cover these responsibilities, it was constituted an Independent Fund (managed by BPI Vida e Pensões, S.A.).
However, following a request to change the functioning of these compensations, requested from the ISP - Instituto de Seguros de Portugal, this Defined Benefit Plan started to cover, as of January 1, 2008, only retired workers at that date, former employees of the Group with "deferred pensions" and the employees at that date and staff of the Group over 50 years of age and at least 15 years of service to the Group.
The actuarial assumptions used at June 30, 2020 by the fund manager include the "Current Unit Credit" calculation method, the Mortality Table and disability TV 73/77 and SuisseRe 2001, respectively, as well as well as salary increase rate, pensions increase rate and discount rate of 1%, 0% and 1,11%, respectively. In December 31, 2019, the salary increase rate, pensions increase rate and discount rate of 1%, 0% and 1,57%, respectively.
(Amounts in Euros)
As of June 30, 2020 and December 31, 2019, the Group's responsibilities to the defined benefit plan and the assets of the Fund allocated can be summarized as follows:
| Defined benefit plan | Jun-20 | Dec-19 |
|---|---|---|
| Responsibility amount | 30.818.044 | 32.274.303 |
| Fund Amount | 24.846.260 | 25.765.129 |
The net liability of Toyota Caetano Portugal Group evidenced above is guaranteed by a provision recorded in the amount of about 10.084.598 euros, reflected in the statement of financial position under "Pension Fundo Defined Benefit Plan Liabilities".
Movements in provisions and accumulated impairment losses over the six-month period ended as of June 30, 2020, and June 30, 2019 were as follows:
| Jun-20 | |||||
|---|---|---|---|---|---|
| Opening Balances |
Increases | Decreases | Other regularizations |
Ending Balances |
|
| Accumulated impairment losses in investments Accumulated impairment losses in accounts receivable (Note 11) Accumulated impairment losses in inventories (Note 10) Provisions |
2.680.809 9.458.773 3.448.675 944.772 |
- 230.224 549.699 94.933 |
- (18.375) (77.010) - |
- - (54.031) (67.190) |
2.680.809 9.670.622 3.867.333 972.515 |
| Jun-19 | |||||
|---|---|---|---|---|---|
| Opening Balances |
Increases | Disposals | Other regularizations |
Ending Balances |
|
| Accumulated impairment losses in investments Accumulated impairment losses in accounts receivable (Note 11) Accumulated impairment losses in inventories (Note 10) Provisions |
2.780.809 8.776.958 2.221.105 881.547 |
- 187.032 736.964 100.855 |
- - - (200.000) |
(100.000) - (144.450) (52.257) |
2.680.809 8.963.990 2.813.619 730.145 |
(Amounts in Euros)
As of June 30, 2020 and June 30, 2019, the caption "Provisions" has the following breakdown:
| Jun-20 | Jun-19 | |
|---|---|---|
| Warranty provisions | 873.636 | 631.266 |
| Litigations in progress | 98.879 | 98.879 |
| 972.515 | 730.145 | |
The income tax for the six-month period ended as of June 30, 2020 and 2019 was as follows:
| Jun-20 | Jun-19 | |
|---|---|---|
| Income Tax | 344.280 | 1.928.828 |
| Deferred income taxes (Note 14) | (57.649) 286.631 |
410.007 2.338.835 |
The detail of sales and services rendered by geographic markets, during the years ended as of June 30, 2020 and 2019, was as follows:
| Jun-20 | Jun-19 | |||
|---|---|---|---|---|
| Market | Amount | % | Amount | % |
| National | 138.819.824 | 88,07% | 197.040.209 | 86,36% |
| Belgium | 11.439.407 | 7,26% | 23.686.205 | 10,38% |
| African Countries with Official Portuguese Language | 7.282.129 | 4,62% | 7.096.355 | 3,11% |
| Spain | 21.002 | 0,01% | 20.636 | 0,01% |
| Germany | 940 | 0,00% | 3.711 | 0,00% |
| United Kingdom | 5.054 | 0,00% | 4.399 | 0,00% |
| Others | 53.413 | 0,04% | 315.376 | 0,14% |
| 157.621.769 | 100,00% | 228.166.891 | 100,00% | |
(Amounts in Euros)
Given the nature of the Group's business, revenue is all recorded "point in time" with the exception of a total of 2.088.298 euros related to the services rendered by the subsidiary Caetano Renting whose revenue is recognized "over the time".
As of 2019, Finance and Insurance became part of the Group's current activity, which until then was considered as supplementary income.
As of June 30, 2020 and 2019, the caption "External supplies and services" was as follows:
| 840.294 9.700.120 2.973.701 5.067.629 288.255 402.822 |
825.212 10.062.100 2.940.373 5.293.398 |
|---|---|
| 246.611 | |
| 465.370 | |
| 80.169 | 180.870 |
| 887.544 | 935.478 |
| 336.451 | 436.321 |
| 105.546 | 122.650 |
| 135.969 | 187.480 |
| 82.396 | 105.401 |
| 12.540 | 20.790 |
| 1.282.888 | 1.699.622 |
| 518.244 | 669.758 |
| 595.098 | 796.095 |
| 69.301 | 127.386 |
| 100.245 | 106.383 |
| 1.216.199 | 1.887.415 |
| 472.130 | 973.323 |
| 37.924 | 52.945 |
| 706.145 | 861.147 |
| 6.148.439 | 8.515.237 |
| 1.813.324 | 1.986.749 |
| 305.750 | 380.909 |
| 746.613 | 779.909 |
| 127.612 | 254.137 |
| 10.303 | 11.194 |
| 501.300 | 437.020 |
| 2.643.537 | 4.665.319 |
| 23.425.907 | |
| 19.524.391 |
At June 30, 2020, the caption "Other services" includes about 1,1 million euros, relating to guarantees claims (2,5 million: June 30, 2019).
(Amounts in Euros)
Payroll expenses are decomposed as follows:
| Jun-20 | Jun-19 | |
|---|---|---|
| Payroll Management | 268.735 | 250.560 |
| Payroll Personnel | 12.305.738 | 14.334.914 |
| Benefits Plan | 697.477 | 996.711 |
| Termination Indemnities | 49.635 | 95.538 |
| Social Security Contribution | 2.281.609 | 3.486.930 |
| Workmen´s Insurance | 166.153 | 210.650 |
| Others | 1.474.344 | 1.626.720 |
| 17.243.691 | 21.002.023 | |
The remuneration of members of the board of Toyota Caetano Portugal, S.A. in the six-months ended as of June 30, 2020 and 2019 were as follows:
| Board Members | Jun-20 | Jun-19 |
|---|---|---|
| Board of Directors Fixed remunerations |
268.735 | 250.560 |
During the six-month period ended as of June 30, 2020 and 2019, the average number of personnel was as follows:
| Personnel | Jun-20 | Jun-19 |
|---|---|---|
| Employees Workers |
1.071 446 |
1.124 484 |
| 1.517 | 1.608 |
(Amounts in Euros)
As of June 30, 2020 and 2019, the caption "Other operating income" and "Other operating expenses" were as follows:
| 18.362.690 | 23.686.689 | |
|---|---|---|
| Others | 1.289.942 | 2.698.100 |
| Materials | 4.024 | 6.317 |
| Gains in the disposal Tangible Fixed Assets | 257.320 | 142.781 |
| Transport expenses recovered | 284.029 | 423.198 |
| Services provided | 1.395.646 | 865.522 |
| Other expenses recovered | 355.996 | 741.612 |
| Advertising expenses and sales promotion recovered | 940.497 | 1.269.005 |
| Subsidies | 2.872.768 | 1.711.339 |
| Work for the Company | 1.176.417 | 1.913.545 |
| Rents charged | 2.039.057 | 2.227.698 |
| Commissions | 28.215 | 2.210.836 |
| Guarantees recovered (Toyota) | 1.312.052 | 2.829.649 |
| Lease Equipment | 6.406.727 | 6.647.087 |
| Other operating income | Jun-20 | Jun-19 |
From the table presented above, we have:
(Amounts in Euros)
| Other operating expenses | Jun-20 | Jun-19 |
|---|---|---|
| Taxes | 679.377 | 762.469 |
| Losses in Inventories | 26.873 | 14.667 |
| Prompt payment discounts granted | 713 | 3.902 |
| Losses in other investments | - | 1.815 |
| Losses in other non-financial investments | 3.475 | 26.187 |
| Corrections to previous years | 17.528 | 244.630 |
| Donations | 3.500 | 2.200 |
| Subscriptions | 29.962 | 15.298 |
| Fines and penalties | 13.141 | 14.754 |
| Others | 498.026 | 446.677 |
| 1.272.595 | 1.532.599 | |
Consolidated net financial results as of June 30, 2020 and 2019 were as follows:
| Expenses and Losses | Jun-20 | Jun-19 |
|---|---|---|
| Interest | 812.944 | 830.478 |
| Other Financial Expenses | 342.180 | 337.211 |
| 1.155.124 | 1.167.689 | |
| Income and Gains | Jun-20 | Jun-19 |
|---|---|---|
| Interest | 9.713 | 10.535 |
| 9.713 | 10.535 | |
(Amounts in Euros)
We summarize in the table below a resume of financial instruments of Toyota Caetano Group as of June 30, 2020, December 31, 2019 and June 30, 2019:
| Financial Assets at amortized cost | Financial Liabilities at amortized cost | ||||||
|---|---|---|---|---|---|---|---|
| Note | Jun-20 | Dec-19 | Jun-19 | Jun-20 | Dec-19 | Jun-19 | |
| Instruments at fair value through capital | 9 | 4.059.806 | 3.923.974 | 3.716.396 | - | - | - |
| Accounts Receivable | 11 | 47.027.511 | 54.845.526 | 75.672.416 | - | - | - |
| Other Debtors - Current | 12 | 2.403.801 | 2.501.776 | 2.721.828 | - | - | - |
| Other current assets | 13 | 2.736.607 | 2.623.076 | 2.513.824 | - | - | - |
| Loans | 17 | - | - | - | 56.286.680 | 44.233.391 | 88.951.084 |
| Other creditors - Current | 19 | - | - | - | 15.696.775 | 35.650.367 | 11.707.676 |
| Accounts payable | 18 | - | - | - | 28.747.076 | 38.236.935 | 43.864.631 |
| Other current liabilities | 21 | - | - | - | 17.939.949 | 7.431.068 | 20.329.369 |
| Cash and Cash Equivalents | 4 | 22.325.693 | 12.693.644 | 10.187.677 | - | - | - |
| 78.553.418 | 76.587.996 | 94.812.141 | 118.670.480 | 125.551.761 | 164.852.760 | ||
Financial Instruments at Fair Value
| Assets at fair value through comprehensive income | |||||||
|---|---|---|---|---|---|---|---|
| Note | Jun-20 | Dec-19 | Jun-19 | ||||
| Instruments at fair value through capital | 9 | 4.059.806 | 3.923.974 | 3.716.396 | |||
| 4.059.806 | 3.923.974 | 3.716.396 | |||||
| Instruments at fair value through capital |
Level | ||
|---|---|---|---|
| At fair value | At cost | ||
| Cimóvel Fund | 4.032.974 | - | 1) |
| Others | - | 26.832 | 3) |
(Amounts in Euros)
According to the paragraph 93 of IFRS 13, we provide below, the disclosure of classification and measurement of financial instruments' fair value, by hierarchy level:
Impact on the Income Statement and Equity
| Impact on equity | ||||||
|---|---|---|---|---|---|---|
| Jun-20 | Dec-19 | Jun-19 | ||||
| Instruments at fair value through capital | 135.832 | 330.465 | 122.887 | |||
| 135.832 | 330.465 | 122.887 | ||||
(Amounts in Euros)
Balances and transactions between the Parent Company and its affiliates, which are related entities to the Parent Company, were eliminated in the consolidation process, so they will not be disclosed in this Note. Balances and transactions details between the Group and the related parties (through Salvador Caetano Auto Group, S.G.P.S, S.A.) can be summarized as follows at June 30, 2020:
| Co ial De bts mm erc |
Pro | du cts |
Fix ed |
set as s |
Se rvi |
ce s |
Ot he |
rs | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Co mp an y |
Re iva ble ce |
Pa ble ya |
Sa les |
Pu rch as es |
Pu rch as es |
Dis ls po sa |
Re nd d ere |
Ob tai d ne |
Co sts |
Inc om e |
||
| Am ori Bri to & S ard inh Ld m a, a. |
1.8 45 |
- | - | - | - | - | - | - | - | |||
| At lân tic Co hia rtu de S.A Po Pe a - mp an gu esa sc a, |
5.1 73 |
- | - | - | - | - | - | - | - | - | ||
| Au to Pa rtn Im ob iliá ria S.A er , |
1.5 95 |
21. 58 9 |
- | - | - | - | - | 14 .15 4 |
- | - | ||
| Ca bo rde nt- Ca Ld Ve Re a- r, a. |
25 7.9 93 |
27 .94 2 |
0 54 .37 |
09 51. 3 |
- | - | 42 6 |
.72 113 3 |
- | 1.0 88 |
||
| Ca eta Ac tiv S.A no e, |
67 6 |
- | 50 3 |
- | - | - | 5.1 84 |
- | - | - | ||
| Ca eta Ae tic S.A no ron au , |
36 7.5 87 |
10 .99 2 |
- | - | - | - | 17. 774 |
- | 8.9 37 |
14 | ||
| Ca eta vie Co mé rci o d uto mó is, S.A Ba e A no ra ve - |
.27 155 1 |
10 8.4 37 |
58 .98 1 |
2.5 14 36 |
- | 2.2 25 |
24 8 .63 |
( ) 8.4 64 |
48 4 |
- | ||
| ( ), Ca eta Ci ty e A cti No rte S.A no ve |
78 7.0 07 |
151 .86 6 |
36 | 48 .71 1 |
- | 1.0 03 .71 0 |
38 3 |
( ) 69 4 |
28 .20 7 |
2.1 99 |
||
| ive Ca eta Dr Sp ort Ur ba S.A no e n, , |
5.4 89 |
2 87 .79 |
( ) 9.6 35 |
1.4 44 |
- | 30 3 |
( ) 3.1 56 |
72 10 5.0 |
- | - | ||
| Ca eta En S.A no erg y, |
17. 46 6 |
177 | ( ) 2.5 47 |
2.2 75 |
- | 1.3 92 |
1.7 46 |
27 0 |
- | - | ||
| Fó Ca eta ula S.A no rm , |
19 .19 0 |
129 .73 7 |
( ) 7.1 20 |
29 9.3 05 |
- | - | ( ) 4.6 39 |
( ) 10 .98 8 |
- | - | ||
| Áf Ca eta Fó ula W est ric S.A no rm a, |
84 | - | - | - | - | - | - | - | - | - | ||
| Ca eta M oto S. A. no rs, |
79 .91 1 |
43 4 |
( ) 4.0 78 |
2.0 15 |
- | 36 3 |
( ) 2.7 17 |
9.5 40 |
- | - | ||
| Áf Ca eta M ric S.A no ov e a, |
63 | - | - | - | - | - | - | - | - | - | ||
| Ca eta On e C V, Ld no a. |
1.9 54 .28 7 |
47 .41 2 |
16 0.0 89 |
156 .17 8 |
- | 2.2 44 .93 4 |
18 .14 9 |
2.6 19 |
- | 21. 03 3 |
||
| Ca eta rts Ld Pa no a. , |
.50 9 33 |
89 8.9 87 |
59 6.0 43 |
1.9 .49 8 15 |
- | 07 1.4 |
0 54 |
6.9 02 |
36 4 |
- | ||
| Ca eta Po S.A no we r, |
62 .77 9 |
5.0 29 |
( ) 5.3 28 |
4.2 30 |
- | 30 3 |
52 9 |
( ) 4.7 21 |
- | - | ||
| ( ), Ca eta Re tai l S.G .P. S. S.A no |
131 .19 6 |
123 | 66 2 |
- | - | - | 24 8 |
1.6 34 |
- | - | ||
| Ca eta tai l E S.A Re añ .U. no sp a, |
101 .07 0 |
- | - | - | - | - | - | - | - | - | ||
| Áf Ca eta Sq dra ric S.A no ua a, |
10 | - | - | - | - | - | - | - | - | - | ||
| Ca eta St S. A. no ar, |
26 .94 5 |
101 | 63 | - | - | 97 6 |
- | 159 | - | - | ||
| Ca eta Te ch nik Ld no a. , |
4.1 84 |
1.5 19 |
87 0 |
- | - | 24 2 |
94 4 |
( ) 1.2 45 |
- | - | ||
| bri ari Ca eta Bu Fa ão de Ca S.A no s - ca ç rro ç as , |
2.5 45 .39 8 |
1.2 84 .39 2 |
3.2 36 |
18 .45 2 |
- | 23 .17 6 |
92 0.1 64 |
14 .45 5 |
48 .02 0 |
1.9 49 |
||
| Ca ets u P ub lici da de S.A , |
2.0 30 |
50 1.5 20 |
21. 45 6 |
- | - | - | 97 7 |
6.3 74 |
53 0.5 41 |
- | ||
| Co ial bts De mm erc |
Pro | du cts |
Fix ed |
set as s |
Se rvi |
ce s |
Ot he |
rs | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Co mp an y |
Re iva ble ce |
Pa ble ya |
Sa les |
Pu rch as es |
Pu rch as es |
Dis ls po sa |
Re nd d ere |
Ob tai d ne |
Co sts |
Inc om e |
| mé mó Ca lus Co rci o d e A uto is, S.A rp ve - |
28 .57 1 |
- | 6.9 25 |
- | - | - | 22 .08 5 |
- | - | - |
| Ch oic e C S. A. ar, |
19 3.3 |
05 5.5 |
- | - | - | - | - | 8.1 69 |
- | |
| CO CIG A - Co tru õe s C ivis de Ga ia, S.A ns ç |
15 .91 4 |
96 .24 4 |
- | - | - | 6.5 32 |
- | 74 0 |
- | |
| CO So íco la, Sil víc ola ob iliá ria S.A VIM c. A Im gr e - , |
- | 2.4 60 |
- | - | - | - | - | - | 2.0 00 |
- |
| Fin log Alu e C érc io d e A uto mó is, S.A gu er om ve - |
147 .99 9 |
20 4.7 98 |
75 8.8 25 |
2.1 44 .83 1 |
- | 28 7.3 63 |
166 .55 0 |
26 6.6 20 |
132 .76 7 |
- |
| Fu nd ão Sa lva do r C tan aç ae o |
65 2.9 07 |
- | - | - | - | - | - | - | - | - |
| ( ), Gu éri Re nt- Ca Do is Ld n - a- r a. |
68 2.2 31 |
1.5 49 |
13 .66 0 |
- | - | 22 .87 5 |
45 8.5 37 |
1.0 86 |
- | 23 .34 5 |
| Hy da i P ort al, S.A un ug |
47 .88 7 |
- | 8.4 18 |
- | - | - | 33 .76 5 |
- | - | 60 8 |
| Lid ion So luc S.L era es , |
3.4 65 |
- | - | - | - | - | - | 54 .56 3 |
- | - |
| Lu sile ctr Ve ícu los Eq uip tos S.A a - e am en , |
161 .34 4 |
23 6.4 53 |
5.2 79 |
17. 14 5 |
- | 35 .19 0 |
38 .06 3 |
112 .71 0 |
31. 15 0 |
- |
| MD S A uto Me dia ão de Se S.A ç gu ros - , |
10 0.5 70 |
- | - | - | - | - | 36 1.6 74 |
- | - | - |
| Mo vic Mo vim taç ão In du str ial, Ld arg o - en a. |
3.3 59 |
27 1.1 14 |
24 8 |
- | - | - | 23 0.7 31 |
111 .94 8 |
156 .81 8 |
- |
| óri P.O .A. L. - Pa vim taç õe Ob Ac S.A en s e ras es s as , |
17. 80 6 |
- | - | - | - | - | - | - | - | - |
| Po rtia Co mé rci o I nte cio l e Pa rtic ipa S.A õe ng a - rna na ç s, |
93 .71 4 |
24 .49 1 |
47 6 |
- | 2.8 62 |
72 .21 9 |
17. 65 9 |
47 .54 8 |
5.4 63 |
50 |
| RA RC ON Ar ite ctu e C lta do ria S.A qu ra on su - , |
- | 24 .18 4 |
- | - | - | - | - | - | 31. 717 |
- |
| Rig Co ult ori Ge stã S.A or ns a e o, - |
90 .99 6 |
88 2.6 80 |
50 1.5 |
- | 10 0 .37 |
- | 10 60 4.1 |
54 4.1 74 |
72 90 1.3 |
73 |
| ( ), Sa lva do r C tan o A uto S.G .P. S. S.A ae , |
10 | - | - | - | - | - | - | - | - | - |
| cie iliá ria ia, SIM OG A - So da de Im ob de Ga S.A |
1.3 74 |
- | - | - | - | - | - | - | - | - |
| S óz ó P ort al, S.A ug |
3.8 70 |
- | - | - | - | - | - | - | - | - |
| To ta Mo tor Co rat ion yo rpo |
- | 5.2 90 .23 8 |
- | - | - | 94 2.3 98 |
11. 78 6.7 59 |
- | 50 | - |
| / ta tor Sa To Mo Eu Nv yo rop e, |
2.0 82 .25 5 |
.79 97 15 1.4 |
- | - | - | 8.3 9 47 .34 |
.70 7.8 57 14 |
- | .95 177 7 |
1.2 01 |
| Tu ris iva So cie da de Tu rís tic a P aiv S.A pa en se - , |
73 8 |
- | - | - | - | - | - | - | - | - |
| Áf ( ), ric VA S S.G .P. S. S.A a |
52 | - | - | - | - | - | - | - | - | - |
| Va s C ab o V erd So cie da de Un ipe al, S.A e, sso |
85 .50 7 |
2.5 54 |
33 .64 4 |
31. 24 6 |
- | 45 .58 6 |
3.7 67 |
- | 75 .79 7 |
|
| 10 .78 4.6 46 |
26 .11 1.8 16 |
1.6 96 .62 6 |
4.8 34 .95 9 |
86 .75 1 |
12. 98 6.4 25 |
71. 96 1.1 05 |
1.3 91. 20 6 |
1.8 84 .77 4 |
127 .35 7 |
|
Goods and services purchased and sales to related parties were made at market prices.
(Amounts in Euros)
The main information relating to the business segments existing for the six-month period ended at June 30, 2020 and 2019, is as follows:
| 30/ 06/ 202 |
0 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TIO NA NA L |
FO IGN RE |
||||||||||||||||
| Ve hic |
les | Ind rial Eq uip ust nt me |
Oth ers |
Ve | hic les |
Ind ust |
rial Eq uip |
nt me |
Elim ina tion s |
Co lida ted nso |
|||||||
| Ind ust ry |
Co ial mm erc |
Se rvic es |
Re l nta |
Ma chi nes |
Se rvic es |
Re l nta |
Ind ust ry |
Co ial mm erc |
Ma chi nes |
Se rvic es |
Re l nta |
||||||
| PR OF IT |
|||||||||||||||||
| Ext al s ale ern s |
29. 680 |
167 .36 8.1 10 |
8.3 40. 839 |
11. 447 .31 9 |
6.0 99. 675 |
2.2 85. 063 |
7.0 52. 288 |
- | 11. 529 .43 3 |
8.6 01. 137 |
2.0 05 |
36. 454 |
11. 730 |
( 5) 58. 736 .34 |
164 .06 7.3 88 |
||
| Inc om e |
|||||||||||||||||
| Op tion al i era nco me |
4.6 77 |
128 .62 4 |
1.1 94. 785 |
( 5) 795 .52 |
684 .36 4 |
991 .50 0 |
182 .02 8 |
- | ( 9) 250 .59 |
( 7) 146 .61 |
404 | 14. 221 |
8.3 50 |
( 6) 550 .06 |
1.4 66. 146 |
||
| Fin ial inc anc om e |
( 111 ) |
( 838 .13 9) |
( 18. 307 ) |
( 143 .79 1) |
( 21. 581 ) |
( 10. 920 ) |
( 32. 922 ) |
- | ( 64. 011 ) |
( 15. 396 ) |
( 23) |
( 148 ) |
( 62) |
- | ( 1.1 45. 411 ) |
||
| Ne t In ith lling int ntro sts com e w non -co ere |
4.5 66 |
( 902 .23 2) |
870 .77 0 |
( 727 .97 0) |
420 .37 0 |
980 .57 9 |
208 .64 9 |
- | ( 314 .61 0) |
( 162 .17 5) |
381 | 14. 073 |
8.2 88 |
( 366 .58 5) |
34. 104 |
||
| Oth Inf atio er orm n |
|||||||||||||||||
| Tot al c olid ate d a ts ons sse |
23. 520 .66 9 |
269 .34 5.4 19 |
12. 894 .08 6 |
25. 831 .03 1 |
6.4 16. 681 |
1.4 86. 342 |
21. 746 .96 4 |
47. 888 .74 8 |
- | 6.6 27. 294 |
- | - | - | ( 100 .99 7.0 85) |
314 .76 0.1 49 |
||
| Tot al c olid d li abi litie ate ons s |
176 .69 4 |
162 .64 9.3 86 |
8.6 88. 841 |
26. 541 .50 7 |
169 .46 2 |
174 .27 7 |
25. 943 .21 5 |
41. 109 |
- | 2.1 34. 877 |
- | - | - | ( 54. 767 .49 5) |
171 .75 1.8 73 |
||
| Ca ital Ex p pen ses |
60. 584 |
3.9 05. 181 |
416 .38 7 |
( 1.1 88. 162 ) |
- | 26. 528 |
1.7 74. 969 |
1.9 70 |
- | 61. 064 |
- | - | - | ( 18. 300 ) |
5.0 40. 221 |
||
| De cia tion pre |
280 .24 0 |
2.9 89. 700 |
292 .86 4 |
3.5 65. 256 |
33. 186 |
12. 108 |
3.3 87. 760 |
1.3 86 |
- | 89. 562 |
- | - | - | ( ) 75. 894 |
10. 576 .16 8 |
||
(Amounts in Euros)
| NA TIO NA L |
FO | RE IGN |
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| hic Ve |
les | Ind | rial uip ust Eq nt me |
hic Ve les |
Ind ust |
rial uip Eq nt me |
Elim ina tio ns |
lida Co ted nso |
||||||||
| Ind ust ry |
Co ial mm erc |
Ser vic es |
Ren tal |
Ma chi nes |
Ser vic es |
Ren tal |
Ind ust |
ry | Co ial mm erc |
Ma chi nes |
Ser vic es |
Ren tal |
||||
| PR OF IT |
||||||||||||||||
| Ext al s ale ern s |
8 33 .55 |
256 9.9 91 .44 |
8.7 57. 766 |
22. 02 8 17.4 |
99 2 7.4 .65 |
1.9 2 75. 36 |
59 .98 6.6 7 |
- | 23. 68 |
9.0 52 |
10. 6.9 86 34 |
273 .43 3 |
10. 05 8 |
95 3.1 |
( 95) 98 .29 0.9 |
234 .83 0.0 73 |
| Inc om e |
||||||||||||||||
| Op tio nal inc era om e |
6.8 35 |
5.0 30 .41 8 |
19. 214 |
( 6) 163 .89 |
1.17 5.4 11 |
1.3 21. 02 2 |
( 7) 204 .20 |
48 | 44 | 5.3 71 |
30 9.4 98 |
44 .77 8 |
6.9 93 |
785 | 1.9 50 .66 8 |
9.9 42 .93 8 |
| Fin ial inc anc om e |
( 52) |
( 1) 912 .30 |
( 11) 9.4 |
10. 198 |
( ) 15. 974 |
( ) 7.6 49 |
( ) 143 .117 |
( 24) |
( 67. |
3) 82 |
( ) 10. 174 |
( ) 787 |
( 31) |
( 9) |
- | ( 54) 1.15 7.1 |
| Net ith ntr olli int sts Inc om e w non -co ng ere |
83 6.7 |
3.9 58 .12 3 |
7.0 73 |
( 8) .69 153 |
9.4 1.15 37 |
1.3 13. 373 |
( 5) .32 347 |
18 | 377 | 9 .54 |
299 .23 7 |
.99 0 43 |
6.9 61 |
776 | ( 8) 225 .34 |
.94 9 6.4 46 |
| Oth Inf ati er orm on |
||||||||||||||||
| Tot al c olid ate d a ts ons sse |
26. 195 .72 9 |
36 2.8 22. 84 0 |
12. 149 .54 9 |
3.7 60 .32 8 |
7.6 53 .59 7 |
1.79 3.3 65 |
64 .01 2.9 73 |
30 .58 4 |
- | 7.13 3.1 60 |
- | - | - | ( 03) 142 .60 2.7 |
34 2.9 49 .42 3 |
|
| Tot al c olid ate d li abi litie ons s |
241 .13 6 |
219 .96 2.1 01 |
8.9 95 .35 6 |
1.11 1.8 59 |
1.7 87. 64 9 |
312 .73 9 |
67. 656 .91 9 |
22. 644 |
- | 2.2 38 .77 1 |
- | - | - | ( 47) 96 .81 8.4 |
20 5.5 10. 727 |
|
| Ca ital Ex p pen ses |
79. 551 |
7.16 6.6 97 |
618 .84 9 |
652 .86 0 |
- | 51. 350 |
12. 40 1.12 3 |
1.5 58 |
- | 170 .58 3 |
- | - | - | ( 7) 2.5 46 .09 |
18. 596 .47 3 |
|
| De cia tio pre n |
335 .00 1 |
2.6 96 .80 0 |
189 .59 9 |
40 9.5 36 |
33 .69 6 |
33 .07 9 |
7.6 55 .68 5 |
477 | - | 88 .05 4 |
- | - | - | ( 4) 193 .34 |
11.2 48 .58 3 |
|
30/06/2019
The line "Turnover" includes Sales, Service Rendered and the amount of about 6.445.618 Euros (6.663.182 Euros as of June 30, 2019) related to equipment rentals accounted in Other Operating Income (Note 28).
The column "Eliminations" mainly includes the elimination of transactions between Group companies included in consolidation, mainly belonging to Vehicles segment.
(Amounts in Euros)
Financial commitments not included in the consolidated statement of financial position
As of June 30, 2020, December 31, 2019 and June 30, 2019, Toyota Caetano Group had assumed the following financial commitments:
| Commitments | Jun-20 | Dec-19 | Jun-19 |
|---|---|---|---|
| Guarantees for Imports | 4.000.000 | 4.000.000 | 5.664.423 |
| Other financial guarantees | 1.924.863 | 1.914.401 | 246.391 |
| 5.924.863 | 5.914.401 | 5.910.814 | |
The amount presented classified as "Guarantees for Imports", includes the amount of 4 million Euros related with guarantees on imports provided to Customs Agency, which is intended to guarantee the subsequent payment of the amounts resulting from the duties and taxes, as well as the vehicle tax in respective orders and registration requests.
Following the 26,5 million Euros debt contracting, that has expired its payment term, but partially renewed, the Toyota Caetano has granted mortgages to the respective financial institutions, valued at about 23,4 million Euros, at the financing date.
The Group adopts the necessary measures relating to the environment, aiming to fulfil current applicable legislation.
The Toyota Caetano Group Board of Directors does not estimate that there are risks related to the environmental protection and improvement, not having received any infraction related to this matter during the six-month period ended at 2020.
(Amounts in Euros)
In September 2000, the European Commission approved a Directive regarding endof-life vehicles and the responsibility of Producers/Distributors for dismantling and recycling them.
Producers/Distributors will have to support at least a significant part of the cost of the dismantling of vehicles that went to the market after July 1, 2002, as well as in relation to vehicles produced before this date, but presented as of January 1, 2007.
This legislation will impact Toyota vehicles sold in Portugal. Toyota Caetano and Toyota are closely monitoring the development of Portuguese National Legislation in order to access the impact of these operations in its financial statements.
It is our conviction, in accordance with studies performed on the Portuguese market, and taking in consideration the possible usage of the vehicles parts resulting from the dismantlement, that the effective impact of this legislation in the Company accounts will be reduced or nil.
Meanwhile, and according to the legislation in force (Dec. /Law 196/2003), the Company signed a contract with "ValorCar – Sociedade de Gestão de Veículos em Fim de Vida, Lda." - a licensed entity for the management of an integrated system of VLF- the transfer of the liabilities in this process.
The earnings per share for the six-month period ended as of June 30, 2020 and 2019 were computed based on the following amounts:
| Jun-20 | Jun-19 | |
|---|---|---|
| Net Income Basic Diluted |
34.104 34.104 |
6.446.949 6.446.949 |
| Number of shares | 35.000.000 | 35.000.000 |
| Earnings per share (basic and diluted) | 0,001 | 0,184 |
(Amounts in Euros)
During the six-month period ended as of June 30, 2020 and June 30, 2019 there were no changes in the number of shares outstanding.
Since the end of the semester to the present date, Salvador Caetano -Auto- S.G.P.S., S.A. acquired 1.552 shares of par value of 1 Euro each, fully realized and representative.
The consolidated financial statements were approved by the Board of Directors on August 27th, 2020.
These financial statements are a translation of financial statements originally issued in Portuguese language in accordance with IFRS. In the event of discrepancies, the Portuguese language version prevails.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS
ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS - Chairman MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS GISELA MARIA FALCÃO SOUSA PIRES PASSOS MATTHEW PETER HARRISON KATSUTOSHI NISHIMOTO
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 2020 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,
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 2020 accurately reflect the result of all operations developed in that same period by the Group Toyota Caetano Portugal, S.A.
Vila Nova de Gaia, 27th August 2020
José Domingos da Silva Fernandes Antonieta Isabel da Costa Moura Daniel Broekhuizen
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.