Quarterly Report • Aug 30, 2019
Quarterly Report
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Jorge Manuel Coutinho Franco da Quinta – Chairman António José da Cruz Espinheira Rio – Vice-Chairman Alírio Ferreira dos Santos – Secretary João António Ferreira de Araújo Sequeira – Secretary
José Reis da Silva Ramos – Chairman & CEO Maria Angelina Martins Caetano Ramos – Member Salvador Acácio Martins Caetano – Member Miguel Pedro Caetano Ramos – Member Matthew Peter Harrison – Member Katsutoshi Nishimoto – Member Rui Manuel Machado de Noronha Mendes – Member Masaru Shimada – Alternate
José Domingos da Silva Fernandes – Chairman Alberto Luis Lema Mandim – Member Daniel Broekhuizen – Member Maria Lívia Fernandes Alves – Alternate Akito Takami – Alternate
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. represented by José Miguel Dantas Maio Marques or by António Joaquim Brochado Correia Joaquim Miguel de Azevedo Barroso - Alternate
The following progress report has been prepared in accordance with Article 246(1)(b) of the Portuguese Securities Code. For each of the member Companies within the consolidation scope of Toyota Caetano Portugal, it contains all the main events during the period under analysis, as well as their impact upon 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 2019 the Ovar Plant produced a total of 1,234 vehicles, representing a 7.8% increase over the same period last year. This increase reflects the vehicle's rising sales in its destination market (South Africa).
At the start of the year, because of the change in the plant that supplies the LC70 Spar, a Toyota Motor Corporation team visited the Ovar Plant to lend support in making the necessary adjustments to the welding jigs. As planned, production needed to be stopped for a few days. This period served to modify the LC70 production layout, more specifically the logistic flow and storage, in order to compact the process, thereby doing away with unnecessary moving of material.
The 1st half of the year was also marked by the introduction of a welding robot in regular production, to release employees from performing the most demanding physical tasks.
Also as part of Ergonomics, a pilot experiment was conducted on use of an Exo Suit in the production process. The Ovar Plant was selected from among the various European EMCs, due to its manual processes, which include constant movements above the shoulders. For 10 weeks, several employees from the plant's different areas were involved in this project, and they were able to provide feedback on the benefits of and difficulties in using this equipment.
Lastly, it should be pointed out that the Sustainable Section Project was launched and was included in the Ovar Plant's environmental strategy for attaining the Toyota 2050 environmental goals.
The PPO/PDI activity consisted of the transforming/preparing of 2,313 units, a 12.5% YoY rise, justified by the introduction of the used vehicle pool (buy-backs).
| PRODUCTION | 2019 (JAN-JUN) |
2018 | 2018 (JAN-JUN) |
2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|
| Toyota Physical Units | 1,234 | 2,114 | 1,145 | 1,913 | 1,823 | 1,629 |
| Transformed/Prepared Physical Units |
2,313 | 3,776 | 2,055 | 3,469 | 3,773 | 4,353 |
| Total Employees (LC70+PDI AND POOL) |
201 | 194 | 180 | 177 | 186 | 192 |
The first half of the year was further marked by the following events:
1st follow-up audit, conducted as part of the ISO 14001 Quality Management System and Quality Standard ISO 9001;
Stage 1 Concession Audit, aimed at certifying the Workplace Health and Safety Management System (ISO 45001:2018), held from 13 to 15 May;
Plant hosting TME's Ergonomics Face to Face, on 25 and 26 June.
The 1st half of 2019 marked the end of the rising trend of the last few years, with the overall market decreasing by almost 4.1%.
Although forecasts indicate that the economy is to maintain its expansion trend, the growth rate is slowing down in 2019.
The consumer confidence index decreased in the first quarter of the year. According to INE (Statistics Portugal), confidence was lower than the expected outlook regarding the nation's evolving economic situation, the financial situation of households and the making of major purchases.
The decline in the car market was more significant for passenger vehicles, which dropped by 4.4%, while light commercial vehicles slipped only 1.5%.
More or less in line with the market trend, in the first half of the year, Toyota recorded a 5.9% drop, with a total of 6,183 vehicles sold.
These sales resulted in a total market share of 4.2% in the first half of the year (-0.1 p.p. compared to 2018).
Toyota's performance was different depending on whether we are talking about Passenger cars or Light Commercial Vehicles:
The culprit of these results is the end of the sale of Diesel vehicles (Toyota was the first carmaker to stop making this type of engine), which, in the 1st quarter of the year, had an impact on the sales of the core model Auris, which was now replaced with the New Corolla.
We should point out the continued good performance of hybrid vehicles, which recorded a 22% growth compared to the 1st half of 2018, reaching a >60% mix in passenger cars, thus strengthening the carmaker's leadership in terms of this type of engines.
This drop is mostly justified by the discontinuing of passenger-derived Diesel models – Yaris & Auris Bizz.
Irrespective of the new European regulations regarding emissions, and with wellestablished targets, Portugal's corporate market for Diesel vehicles still carries significant weight.
The second half of the year is expected to bring a recovery in the brand's overall performance: in passenger cars, this entails continued investment in hybrid engines, while in commercial vehicles, this shall be upheld by the launch of specific initiatives devoted to this type of vehicles (commercial incentives, fleet client events, communication initiatives, etc.).
The premium market decreased by 3% in the 1st half of 2019.
Lexus, which sells exclusively Hybrid engine versions, recorded a 6.9% decline relative to the previous year. This corresponded to a 1.1.% market share in the premium segment. This performance is almost exclusively due to management action that led us to adjust the stock of courtesy and demo cars in the dealer network, while the make grew in the sales channels to private customers and small companies.
In view of the launch of the new Lexus UX model in March, which is part of one of the segments with the largest growth (C-SUV), forecasts point to a recovery in sales by year's end.
| Mercado | Vendas Toyota | |||||||
|---|---|---|---|---|---|---|---|---|
| '18 | '19 | Variation | '18 | "19" | Variation | |||
| % | QTY | Share | QTY | Share | % | |||
| Empilhadores Contrabalançados | 852 | 823 | $-3.4%$ | 173 | 17.8% | 237 | 28.8% | 37,0% |
| Equipamento de Armazém | 1282 | 1403 | 9.4% | 254 | 18.9% | 368 | 26.2% | 44,9% |
| TOTAL MMC | 2134 | 2226 | 4.3% | 427 | 20.0% | 605 | 27.2% | 41,7% |
In the first half of 2019, the Cargo Handling Machines market grew by approximately 4.3% compared to the same period of the previous year.
With regard to Toyota, 605 orders were placed in 2019, which, in a total market of 2226 units, corresponds to a market share of 27.2%.
Regarding the segment of Counterbalanced Forklifts, we notice that the no. of ordered units rose significantly (+37%) compared to the same period of the previous year. This growth was basically
justified by a special campaign conducted by Toyota in the first 3 months of the year, which enabled closing more business deals, thereby raising our market share to 28.8%.
In the Warehouse Equipment segment, we also noticed a sales growth of around 44.9%, thus placing our market share at 26.2%.
This growth is further justified by the campaign conducted by our represented party in the first 3 months of the year, thereby making our bid more competitive and leading to improved performance by Toyota.
Taking into account that it is a holiday period, as usual, in July and August we expect a slowdown in activity.
However, activity is expected to resume its usual pace come September and may even pick up speed in the last few months of the year.
With regard to the budget, in terms of both units and results, it is expected to be fully complied with, considering the level of execution achieved by June '19.
In the first half of 2019, the overall billing of the After-Sales Division totalled 19.6 million euros. This figure includes the 'Warranty Extension' and 'Total Assistance' services, whose billing in this period amounted to 873,000 Euros.
The spare parts business, excluding accessories, warranties and services, totalled 14.7 million euros. This amount represents a growth of 2.6% compared to the first half of 2018.
| Sales of Spare Parts st semester 2018 1 |
Sales of Spare Parts st semester 2019 1 |
Growth % 2019/2018 |
|---|---|---|
| 14.3 M€ | 14.7 M€ | 2.6% |
As for accessories, turnover (which includes merchandising) totalled 1.8 million euros. The inclusion of accessories and merchandising per new vehicle sold shows a 7.3% growth (293€ in the first half of 2019 against 273€ in the first half of 2018).
In the first half of 2019, TCAP kept focusing on service par excellence geared to the Customer (360º vision), in order to ensure the development of the after-sales business.
We highlight some of the initiatives undertaken, which contributed toward the results of this first half of the year:
The After Sales Division intends to maintain the growth levels it has already achieved by the second half of 2019, keeping a strong focus on the aforementioned strategy (360º strategy).
• According to European Commission reports, the recent slowdown in the growth of world trade, along with uncertainty regarding trade policies, is weighing on growth prospects concerning Gross Domestic Product (GDP) in 2019 and 2020, especially if we consider the persistent weakness of the manufacturing industry, particularly in countries facing problems specific to the automotive industry.
• Thus, GDP is expected to reach record lows in 2019, contrasting with the good rate achieved in 2017. Thus, economic growth in Europe should rely entirely on domestic activities.
• In this scenario, turnover in the 1st half of the year at Caetano Auto stands at 115 million euros, against 125 million recorded in the same period in 2018.
• By sector, a decrease was recorded in the number of vehicles sold, against the same period in 2018, as this effect affected mostly turnover on the freed-up absolute margin and on profits from related financings. This decline does not, therefore, directly affect the bottom line: in addition, we now need to consider gains from the new vehicle rental business, which was non-existent in 2018. In fact, the business model underwent a change and, in 2019, the 'vehicle rental' operations that, until 2018, were consigned to a renting company shall become part of the company's business.
• In addition, the new vehicle business was also penalised by the termination of all diesel-powered models (which was the brand's choice, as it is committed to investing solely on hybrid models), during a time when there is still some demand for those engine versions in the market, namely among corporate customers.
• With regard to after-sales, the good levels achieved in 2018 were also recorded in 2019, with similar figures to those of the previous year.
• As for depreciations, namely of vehicles, we should note that the increase therein in 2019 is deemed offset by the gains already mentioned in the new 'vehicle rental' business, regarding units which, for this purpose, are now being recorded under the company's fixed assets, generating depreciations.
• In investments, this semester, the company records around one million euros in improvement works on properties and miscellaneous workshop and administrative equipment. In the semester, facilities in Viseu and Faro were disposed of, generating an asset of 30,000 euros. (The same period in 2018 recorded about 1 million euros in extraordinary income, mainly generated by the disposal of assets.)
With a semester result very close to break-even, we are convinced that the strategies outlined in the last few months will enable this associate to recover by the end of the fiscal year, achieving profitability levels in accordance with budget expectations.
Data disclosed by the Cape Verdean National Statistics Institute (INECV), regarding the first quarter of 2019, show that Cape Verde experienced a slowdown in economic growth, even recording negative growth when compared to the same quarter of the previous year, making for an unfavourable economic environment.
According to INECV, factors contributing toward said slowdown included tourism, construction and the manufacturing industry.
According to the same source, in the tourism sector, the confidence indicator kept up the downward trend of the last quarter, with a negative YoY growth for this quarter.
Regarding the construction sector, while the indicator bucked the downward trend of the last few quarters, the series average remained below the average, with a negative YoY growth for this quarter.
The same situation was recorded in the manufacturing industry. In this sector, INECV notes that the indicator stood below the series average, with a negative YoY growth for this quarter, making for an unfavourable environment in the sector.
Meanwhile, favourable environments were recorded in sectors such as trade in establishments, outdoor market trade as well as transportation and ancillary services to transports and residential tourism.
*Source (INE CV Q1 2019 Economic Survey)
| 2018 | Variation | ||||
|---|---|---|---|---|---|
| SEGMENT | BRAND | 2019 | Qty. | % | |
| Light-Duty Passenger | |||||
| Vehicles | Toyota | 35 | 79 | +44 | +125.7% |
| Light Commercial Vehicles | Toyota | 156 | 136 | -20 | -14.7% |
| Heavy Commercial Vehicles | Toyota | 16 | 7 | -9 | -128.6% |
| 207 | 222 | +15 | +7.2% |
In the first half of 2019, when compared to the same period the previous year, Caetano Auto CV, S.A. sold 15 more units, a result that corresponds to a 7.2% growth in new vehicles. As can be deduced from the table above, growth is centred on the passenger vehicle segment, at the expense of light- and heavy-duty commercial vehicles. Models contributing toward the positive change in passenger vehicles basically included the recently launched Rush (+42 units), the Corolla (+10 units) and the Rav 4 (+4 units). Regarding light-duty commercial vehicles, the decline occurred almost exclusively in pickups (Hilux), due to a certain decrease in competitiveness originating in product price. Amended legislation in the national budget for the current year, which included doing away with the concession of licences allowing passengers to be transported in the cargo box of the Hilux CD model (mainly used on the islands of Sal and Boavista for driving tourists around those islands), had a direct impact on sales.
| Variation | ||||
|---|---|---|---|---|
| 2018 | 2019 | |||
| SALES | Value | % | ||
| Parts/Accessories | 86,472,417 | 88,614,088 | +2,141,671 | +2.5% |
| Workshop (Labour) | 20,596,447 | 21,369,920 | +773,473 | +3.8% |
| 107,068,865 | 109,519,867 | +2,915,144 | +2,7% | |
| (Amounts in ECV) |
As concerns After-Sales, we notice a YoY increase in the turnover of both spare parts and labour. This increase reflects the rising number of stops for mechanical repairs, compared to the previous year.
We close the 1st half of this year with a fleet of 3,951 units, representing a decline of around 10.49%, when compared to the same period of the previous year. This decline had to do with a lower number of vehicles in the partnership with Caetano Auto.
However, the supply of vehicles to the rent-a-car business remained on the rise, having increased by 17.58% YoY.
In addition to the rental of Passenger Vehicles, we continued with the rental of Industrial Machines, which already represent 16% of the total fleet.
With a reduced fleet, when compared to the 1st half of the previous fiscal year, there was also an inevitable decline in Turnover.
Considering the normal development of the company's operations, during the 2nd of the year, we expect a positive contribution such that the annual result falls within the parameters achieved in previous fiscal years.
Throughout the first half of 2019, Toyota Caetano Portugal continued to invest in its Integrated Personnel Management strategy, in order to continually improve the quality and efficiency of personal development processes and policies, with a view to attracting and retaining top talent and promoting the 'Ser Caetano' culture, in harmony with the Toyota Way. All this is aimed at adopting behaviours there are consistent with the business' values and objectives.
Activating the brand was one of the pillars of this semester, through communication and corporate alignment initiatives. Noteworthy among these is the launch, in February, of the Salvador Caetano Group Employment Portal, which has taken on an important role as a catalyst for talent acquisition for the Toyota Brand. This project results from a multidisciplinary work that combines different teams and, in the case of Toyota, is in line with the brand's international strategy, under the motto 'BRIT – Best Retail in Town', which fosters greater closeness to the local context. The main objective of the employment portal is to improve the employing brand's positioning and attractiveness while continuing to ensure Human Resource services that are geared to the needs of both internal and external customers, while keeping up with trends in the area of People Management. The portal's communication hinged on the commitment and involvement of our employees, while conveying our Personnel's stories and experiences outside the company.
The review of the process and strategy of the Young Talent Programme has given rise to a strong presence at job fairs and a stable connection to universities, which enables attracting new generations of talent. Also within this sphere, the Salvador Caetano Vocational Training Centre, whose main partner is Toyota Caetano Portugal, now has new facilities. This shows the constant investment being made in training future employees for critical areas of our operations.
The organising of various health and well-being initiatives, through our Sports Committee project, represents yet another investment in improving the work environment and employee satisfaction.
This period also included strong initiatives carried out by the management to raise awareness to Kaizen methodologies and to the need to move from strategy to action, by empowering teams and endowing them decision-making capabilities. A major contributor to this is an organisational alignment, through events that foster this Kaizen philosophy and the nurturing of the 'Ser Caetano' and 'Toyota Way' Values, as well as raising awareness to monitoring team indicator, with a view to standardising performance and development management processes and metrics.
Lastly, the digitalising of processes remains an effective investment in administrative simplification and in caring for the environment.
All our initiatives and projects reflect our commitment toward people, continuously making Toyota Caetano Portugal an excellent place to live, grow and work.
In this first semester of 2019, the Group present a turnover of 228 million euros, around 9 million euros less (-3.7%) than that of the same period in 2018, reflecting the market behaviour, which in this first semester, concerning light vehicles, demonstrated a decline of around 4% over the previous year. This semester was further marked by the launch of the new Corolla Hybrid and the Camry Hybrid, a D-/E-segment sedan which promises to increase sales of electrified models in Portugal, which increased the range of hybrids to 10 models (Yaris, Corolla Hatchback, Corolla Sedan, Corolla Touring Sports, Prius, Prius Plug-in, Prius +, C-HR, RAV4, Camry).
One of the Group's main focuses is to maintain a reference position for the Toyota brand in the automobile market. To this end, it was necessary to put into practice a series of strategies aimed at ensuring a level of operating income that is suitable to the activity carried out. The increment of gross margins in the marketing of products has supported the launch of advertising campaigns aimed at countering the decline in the global automobile market. It was also possible to implement in this period a global salary review as a form of providing better conditions to all employees. As a result of these policies, in this first semester, E.B.I.T.D.A. has amounted to around 21 million euros, a slightly lower amount than that recorded in the same period of 2018.
Net financial income, which was negative by around 1 million euros, has increased compared with that recorded for the same period in 2018, by around 300 thousand euros. This net growth in financial costs emerges in a context of a slight increment in banking debt, but also of a restructuring of debt repayment deadlines, which had already been initiated in the 2nd semester of the previous year, thus easing the short term commitments, though of course slightly increasing costs due to that deferral.
It should be noted that the degree of financial autonomy is at 40,1%, once again reflecting the adequate management of our capital structure.
Below is a table of comparative indicators, presented in thousands of euros, which summarises the evolution of the activity and performance of the Toyota Caetano Portugal Group:
| Jun 18 | Jun 19 | Variation | |
|---|---|---|---|
| Turnover | 237,032 | 228,167 | -3.7% |
| Gross Profit | 42,205 | 44,513 | 5.5% |
| % (f) sales | 17.8% | 19.5% | |
| External supplies and services | 21,659 | 23,426 | 8.2% |
| % (f) sales | 9.1% | 10.3% | |
| Staff expenses | 20,700 | 21,002 | 1.5% |
| % (f) sales | 8.7% | 9.2% | |
| E.B.I.T.D.A. | 21,654 | 21,414 | -1.1% |
| % (f) sales | 9.1% | 9.3% | |
| Operating income | 10,727 | 9,943 | -7.3% |
| % (f) sales | 4.5% | 4.4% | |
| Net financial income | -869 | -1,157 | -33.1% |
| % (f) sales | -0.4% | -0.5% | |
| Consolidated net income | 7,163 | 6,447 | -10.0% |
| % (f) sales | 3.0% | 2.8% | |
| Net Bank Credit | 73,929 | 79572 | 7.6% |
| Degree of financial autonomy | 43.1% | 40.1% |
Faced with the statistics, disclosed so far, of the automobile market in Portugal, it is expected that 2019 will end with a decrease in the number of units sold, a situation that the Toyota Caetano Portugal Group, will be trying to counter. To this end, we count on the widening of product offers in the segment of hybrid vehicles, with a view to ensuring the maintenance of our sustainability strategy in an increasingly competitive market.
Toyota Caetano's credit risk is mainly associated with loans to customers, related to its operating activity.
The main goal of Toyota Caetano's credit risk management is to ensure the effective collection of the operating receivables from its Customers, according to the negotiated payment terms.
In order to mitigate the credit risk 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 geographically diversified Group, with products originating from various parts of the Globe, the exchange rate risk results essentially from commercial transactions in currencies other than the functional currency of each business.
The exchange rate risk management policy seeks to minimise the volatility of the investments and operations denominated in foreign currencies, contributing towards 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:
a) A consistent financial planning based on operating cash flow forecasts for different time horizons (weekly, monthly, annual and multi-annual);
b) The diversification of funding sources;
c) The diversification of the maturities of the debt issued in order to avoid excessive concentrations of debt repayments in short periods of time;
d) The arrangement of committed (and uncommitted) credit facilities, commercial paper programmes, and other types of financial operations with relationship Banks, ensuring the right balance between satisfactory liquidity levels and adequate commitment fees.
On August 8, 2019, Salvador Caetano Auto - S.G.P.S., S.A., as a shareholder of Toyota Caetano Portugal, proposed to be deliberated in a General Shareholders Meeting to occur on the 30th August 2019, under the terms and for the purposes of paragraph b) of number 1 of article 27 of the Portuguese Securities Code, the loss by Toyota Caetano Portugal S.A. of the quality of publicly-held company.
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 2019 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, 29 August 2019
The Board of Directors
José Reis da Silva Ramos – Chairman & CEO Maria Angelina Martins Caetano Ramos – Member Salvador Acácio Martins Caetano – Member Miguel Pedro Caetano Ramos – Member Matthew Peter Harrison – Member Katsutoshi Nishimoto – Member Rui Manuel Machado de Noronha Mendes – Member
(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 2019, 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 2019, 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 Eng. Salvador Acácio Martins Caetano is the Chairman of the Board of Directors, Mrs. Maria Angelina Martins Caetano Ramos is the Vice-Chairwoman of the Board of Directors, and Eng. Miguel Pedro Caetano Ramos is a Member of the Board of Directors, acquired: on 1 February 2019, 205 shares in the amount of 2.80 € each; on 7 February 2019, 495 shares in the amount of 2.80 € each; on 22 March 2019, 3,000 shares in the amount of 2.80 € each; on 27 March 2019, 6,520 shares in the amount of 2.74 € each; on 17 May 2019, 1,000 shares in the amount of 2.60 € each; on 21 May 2019, 7,506 shares in the amount of 2.70 € each; on 23 May 2019, 1,000 shares in the amount of 2.72 € each; on 24 May 2019, 8,140 shares in the amount of 2.70 € each; on 27 May 2019, 19,500 shares in the amount of 2.78 € each; on 28 May 2019, 104,000 shares in the amount of 2.78 € each; and so, on 30 June 2019, it held 23,249,218 share with a par value of 1 euro each.
shareholder COVIM – Sociedade Agrícola, Silvícola e Imobiliária, S.A (in which Mrs. Maria Angelina Martins Caetano Ramos is the Chairwoman of the Board of Directors, and Eng. José Reis da Silva Ramos is the spouse of the Chairwoman of the Board of Directors) carried out no transactions and thus, on 31 December 2019, held 393,252 shares with a nominal value of 1 euro each.
For the purpose provided in the final section of article 447(1) of the Commercial Companies Code (companies in a control or group relationship with the company), it is stated that:
• Eng. José Reis da Silva Ramos, Chairman of the Board of Directors, holds:
1 This percentage includes shares held by the spouse
• Dr. 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 this Company; 1This percentage includes shares held by the spouse
• Eng. Salvador Acácio Martins Caetano, 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 this Company; 1 This percentage includes shares held by the spouse
• Eng. Miguel Pedro Caetano Ramos, Member of the Board of Directions, holds: - 0.00223% of the share capital of Grupo Salvador Caetano, SGPS, S.A., a company in a control relationship with this Company.
(Under the terms of Regulation 5/2008, issued by the CMVM)
On 30 June 2019, 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. | 23,249,218 | 66.426 |
| Toyota Motor Europe NV/SA | 9,450,000 | 27.000 |
| NON-CURRENT ASSETS: Goodwill 7 611.997 611.997 Intangible assets 8 284.940 360.364 Tangible fixed assets 5 120.216.006 112.792.692 Investment properties 6 16.325.030 14.330.714 Instruments at fair value through capital 9 3.716.396 3.633.413 Deferred tax assets 14 2.424.923 2.834.930 Accounts receivable 11 705.764 494.293 Total non-current assets 144.285.056 135.058.403 CURRENT ASSETS: Inventories 10 106.945.018 99.059.426 Accounts receivable 11 74.966.652 56.709.522 Other debtors 12 2.761.189 5.818.605 Other current assets 13 3.803.831 6.331.380 Cash and cash equivalents 4 10.187.677 17.075.155 Total current assets 198.664.367 184.994.088 Total assets 342.949.423 320.052.491 SHAREHOLDERS' EQUITY & LIABILITIES EQUITY: Share capital 35.000.000 35.000.000 Legal reserve 7.498.903 7.498.903 Revaluation reserves 6.195.184 6.195.184 Translation reserves (1.695.238) (1.695.238) Fair value reserves - Instruments at fair value through capital 675.618 552.731 Other reserves 81.848.327 76.061.568 Net income 6.391.195 12.786.759 15 135.913.989 136.399.907 Non-controlling interests 16 1.524.707 1.473.222 Total equity 137.438.696 137.873.129 LIABILITIES: NON-CURRENT LIABILITIES: Loans 17 43.844.191 38.465.142 Defined benefit obligations 22 8.886.983 8.886.983 Provisions 23 730.145 881.547 Deferred tax liabilities 14 1.602.616 1.602.616 Total non-current liabilities 55.063.935 49.836.288 CURRENT LIABILITIES: Loans 17 45.915.926 52.538.913 Accounts payable 18 43.864.631 39.907.558 Other creditors 19 30.016.060 14.783.849 Income tax payable 20 1.008.189 1.939.181 Other current liabilities 21 28.736.458 22.734.556 Defined benefit obligations 22 905.528 439.017 Total current liabilities 150.446.792 132.343.074 Total liabilities 205.510.727 182.179.362 Total liabilities and shareholder' equity 342.949.423 320.052.491 |
ASSETS | Notes | 30/06/2019 | 31/12/2018 |
|---|---|---|---|---|
The notes to the financial statements integrate this statement for the period ending at 30 June 2019.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSE REIS DA SILVA RAMOS –President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
| Notes | 30/06/2019 | 30/06/2018 | |
|---|---|---|---|
| Operating Income: Sales |
25 | 213.851.546 | 223.284.186 |
| Services rendered | 25 | 14.315.345 | 13.748.275 |
| Other operating income | 28 | 23.686.689 | 24.656.444 |
| Variation of products | 10 | 1.181.177 | (2.062.477) |
| 253.034.757 | 259.626.428 | ||
| Operating expenses: | |||
| Cost of sales | 10 | (184.834.903) | (192.764.860) |
| External supplies and services | 26 | (23.425.907) | (21.658.619) |
| Payroll expenses | 27 | (21.002.023) | (20.699.974) |
| Depreciations and amortizations | 5, 6 and 8 | (11.471.536) | (10.927.172) |
| Provisions | 23 | 99.145 | (175.543) |
| Impairment losses | 23 | (923.996) | (338.579) |
| Other operating expenses | 28 | (1.532.599) | (2.334.394) |
| (243.091.819) | (248.899.141) | ||
| Operational Income | 9.942.938 | 10.727.287 | |
| Expense and financial losses | 29 | (1.167.689) | (874.000) |
| Income and financial gains | 29 | 10.535 | 4.891 |
| Profit before taxation | 8.785.784 | 9.858.178 | |
| Income tax for the year | 24 | (2.338.835) | (2.694.983) |
| Net profit for the period | 6.446.949 | 7.163.195 | |
| Net profit for the period attributable to: | |||
| Equity holders of the parent Non-controlling interests |
6.391.195 55.754 |
7.090.430 72.765 |
|
| 6.446.949 | 7.163.195 | ||
| Earnings per share: | |||
| from continuing operations | 37 | 0,184 | 0,205 |
| Basic | 0,184 | 0,205 | |
| from continuing operations | 37 | 0,184 | 0,205 |
| Diluted | 0,184 | 0,205 |
The notes to the financial statements integrate this statement for the period ending at 30 June 2019.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSE REIS DA SILVA RAMOS –President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
(Amounts in Euros)
| Equ ity att ribu tab le t o th nt c e p are om pan y |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sha re Cap ital |
Leg al Res erv es |
Rev alu atio n Res erv es |
Tra nsl atio n Res erv es |
Fai lue r va Res erv es |
Oth er Res erv es |
Tot al Res erv es |
Net Pro fit |
Sub tot al |
Non ntr olli -co ng Inte ts res |
Tot al |
|
| Bal at 3 1 o f D mb er 2 017 anc es ece |
35 .00 0.0 00 |
7.4 98 .90 3 |
6.1 95 .18 4 |
(1.6 8) 95 .23 |
651 .81 8 |
73. 723 .26 3 |
86 .37 3.9 30 |
9.3 38 .30 5 |
130 .71 2.2 35 |
1.3 87. 418 |
132 .09 9.6 53 |
| Cha s in the riod nge pe : plic atio f th olid et i 20 Ap ate d n 17 n o e c ons nco me le f fin ts f Ava ilab ale ial a air val cha or s anc sse ue nge s |
- - - |
- - - |
- - - |
- - - |
- (99 7) .08 (99 7) .08 |
9.3 38. 305 - 9.3 38. 305 |
9.3 38. 305 (99 7) .08 9.2 39. 218 |
(9.3 ) 38. 305 - (9.3 ) 38. 305 |
- (99 7) .08 (99 7) .08 |
- - - |
- (99 7) .08 (99 7) .08 |
| Con sol ida ted t pr ofit for the riod ne pe ida ive inc Con sol ted reh co mp ens om e |
- - |
- - |
- - |
- - |
- (99 7) .08 |
- - |
- (99 7) .08 |
12.7 86. 759 12.7 86. 759 |
12.7 86. 759 12. 687 .67 2 |
85. 804 85. 804 |
12. 872 .56 3 12.7 73. 476 |
| ctio wit h e qui ty h old Tra nsa ns ers Dis trib ute d d ivid end s |
- | - | - | - | - | (7.0 ) 00. 000 |
(7.0 ) 00. 000 |
- | (7.0 ) 00. 000 |
- | (7.0 ) 00. 000 |
| f D Bal at 3 1 o mb er 2 018 anc es ece |
35 .00 0.0 00 |
7.4 98 .90 3 |
6.1 95 .18 4 |
(1.6 8) 95 .23 |
55 2.7 31 |
76. 06 1.5 68 |
88 .61 3.1 48 |
12. 786 .75 9 |
136 .39 9.9 07 |
1.4 73. 22 2 |
137 .87 3.1 29 |
| f D Bal at 3 1 o mb er 2 018 anc es ece |
35 .00 0.0 00 |
7.4 98 .90 3 |
6.1 95 .18 4 |
(1.6 8) 95 .23 |
55 2.7 31 |
76. 06 1.5 68 |
88 .61 3.1 48 |
12. 786 .75 9 |
136 .39 9.9 07 |
1.4 73. 22 2 |
137 .87 3.1 29 |
| Cha s in the riod nge pe : Ap plic atio f th olid ate d n et i 20 18 n o e c ons nco me le f fin ts f Ava ilab ale ial a air val cha or s anc sse ue nge s |
- - - |
- - - |
- - - |
- - - |
- 122 .88 7 122 .88 7 |
12.7 86. 759 - 12.7 86. 759 |
12.7 86. 759 122 .88 7 12.9 09. 646 |
(12 59) .78 6.7 - (12 59) .78 6.7 |
- 122 .88 7 122 .88 7 |
- - - |
- 122 .88 7 122 .88 7 |
| ofit for Con sol ida ted t pr the riod ne pe Tot al c hen siv e in e fo r th om pre com e y ear |
- - |
- - |
- - |
- - |
- 122 .88 7 |
- - |
- 122 .88 7 |
6.3 91.1 95 6.3 91.1 95 |
6.3 91.1 95 6.5 14. 082 |
55. 754 55. 754 |
6.4 46. 949 6.5 69. 836 |
| Tra ctio wit h e qui ty h old nsa ns ers uis itio f no ont roll ing int sts Acq n o n-c ere Dis trib ute d d ivid end s |
- - |
- - |
- - |
- - |
- - |
- (7.0 ) 00. 000 |
- (7.0 ) 00. 000 |
- - |
- (7.0 ) 00. 000 |
(4.2 69) - |
(4.2 69) (7.0 ) 00. 000 |
| Bal at 3 0 o f J e 2 019 anc es un |
35 .00 0.0 00 |
7.4 98 .90 3 |
6.1 95 .18 4 |
(1.6 8) 95 .23 |
675 .61 8 |
81. 84 8.3 27 |
94 .52 2.7 94 |
6.3 91. 195 |
135 .91 3.9 89 |
1.5 24 .70 7 |
137 .43 8.6 96 |
The notes to the financial statements integrate this statement for the period ending at 30 June 2019.
CHARTERED ACCOUNTANTALEXANDRA MARIA PACHECO GAMA JUNQUEIRA
BOARD OF DIRECTORS JOSE REIS DA SILVA RAMOS –President MARIA ANGELINA MARTINS CAETANO RAMOSSALVADOR ACÁCIO MARTINS CAETANOMIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTOMATTHEW PETER HARRISONRUI MANUEL MACHADO DE NORONHA MENDES
(Amounts in Euros)
| 30/06/2019 | 30/06/2018 | |
|---|---|---|
| Consolidated net profit for the period, including non-controlling interests | 6.446.949 | 7.163.195 |
| Components of other consolidated comprehensive income, | ||
| that could not be recycled by profit and loss: | ||
| Instruments at fair value through capital changes (Note 9) | 122.887 | 123.990 |
| Consolidated comprehensive income | 6.569.836 | 7.287.185 |
| Attributable to: | ||
| Equity holders of the parent company | 6.514.082 | 7.214.420 |
| Non-controlling interests | 55.754 | 72.765 |
The notes to the financial statements integrate this statement for the period ending at 30 June 2019.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSE REIS DA SILVA RAMOS –President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
| (Amounts in Euros) | |||||
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | Jun-19 | Dez-18 | |||
| Collections from Customers Payments to Suppliers Payments to Employees |
Operating Flow | 289.477.960 (248.694.376) (14.884.714) |
25.898.870 | 545.543.957 (460.040.730) (32.573.672) |
52.929.555 |
| Payments of Income Tax Other Collections/Payments Related to Operating Activities |
(3.016.030) 6.784.053 |
(5.093.294) (24.889.329) |
|||
| Cash Flow from Operating Activities | 29.666.893 | 22.946.932 | |||
| INVESTING ACTIVITIES | |||||
| Collections from: Investments Properties Tangible Fixed Assets Interest and Other income Dividends |
385.814 1.894.962 - - |
2.280.776 | 2.220.000 672.382 12.554 339.700 |
3.244.636 | |
| Payments to: Investments Properties Tangible Fixed Assets Intangible Assets |
- (13.675.606) (57.255) |
(13.732.861) | (20.775) (4.793.391) (153.701) |
(4.967.867) | |
| Cash Flow from Investment Activities | (11.452.085) | (1.723.231) | |||
| FINANCING ACTIVITIES | |||||
| Collections from: Loans (Note 18) Subsidies and donations |
75.000.000 - |
75.000.000 | 306.483.075 - |
306.483.075 | |
| Payments to: Loans (Note 18) Lease Down Payments Interest and Other costs Dividends |
(86.400.000) (5.339.643) (1.338.356) (7.003.313) |
(100.081.312) | (310.983.075) (7.731.336) (2.189.704) (6.995.076) |
(327.899.191) | |
| Cash Flow from Financing Activities | (25.081.312) | (21.416.116) | |||
| CASH Cash and Cash Equivalents at Beginning of Period (Note 15) Changes in perimeter (Note 4) Cash and Cash Equivalents at End of Period (Note 15) |
17.075.155 (20.974) 10.187.677 |
17.267.570 17.075.155 |
The notes to the financial statements integrate this statement for the period ending at 30 June 2019.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSE REIS DA SILVA RAMOS –President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
(Amounts in Euros)
Toyota Caetano Portugal, S.A. ("Toyota Caetano" or "Company") was incorporated in 1946, has its headquarters in Vila Nova de Gaia, and is the Parent Company of a Group of companies ("Toyota Caetano Group" or "Group"), which mainly develop economic activities included in the automotive sector, namely the import, assembly and commercialization of vehicles, bus and coach industry, sale and rental of industrial equipment forklifts, sale of vehicles parts, as well as the corresponding technical assistance, creation and operation of training projects and development of human resources, as well the management and rental of own properties, and rental of short or 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 Group develops its activity mainly in Portugal and Cape Verde.
Toyota Caetano shares are listed in Euronext Lisbon since October 1987.
As of June 30, 2019, the companies included in Toyota Caetano Group are mentioned in Note 3.
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.
The basis of presentation and the 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, 2018.
Comparative information regarding December 31, 2018, 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 following standards, interpretations, amendments and revisions endorsed by the European Union and mandatory in the fiscal years beginning on or after January 1, 2019, were adopted by the first time in the fiscal year ended at June 30, 2019:
a) The impact of the adoption of the new standards, amendments to standards and interpretations that became effective as of 1 January 2019 is as follows:
IFRS 16 (new), 'Leases'. This new standard replaces IAS 17 – 'Leases' with a significant impact on the accounting by lessees who are now required to recognise a lease liability reflecting future lease payments and a "right-ofuse asset" for all lease contracts, except for certain short-term leases and for low-value assets. The definition of a lease contract also changed, being based on the "right to control the use of an identified asset". The application of IFRS 16 may be retrospective or retrospective modified. The adoption of this new standard did have an impact of 1.444.258 in Asset and Liability on the Group's consolidated financial statements, being the Group considered (i) the retrospective approach modified with the Asset equal to the Liability and (ii) considering the period, as a rule, the mandatory date and (iii) discount rates similar to those practiced in the market for other financing.
of the publication of the new Conceptual Framework, the IASB introduced changes to the text of various standards and interpretations, like: IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, SIC 32, in order to clarify the application of the new definitions of asset / liability and expense / income, in addition to some of the characteristics of financial information. These amendments are retrospective, except if impractical. It is not expected significant impact of future adoption of this amendment on the Group financial statements.
IFRS 17 (new), 'Insurance contracts' (effective for annual periods beginning on or after 1 January 2021). This standard is still subject to endorsement by the European Union. This new standard replaces IFRS 4 and applies to all entities issuing insurance contracts, reinsurance contracts and investment contracts with discretionary participation characteristics. IFRS 17 is based on the current measurement of technical liabilities at each reporting date. The current measurement can be based on a complete "building block approach" or "premium allocation approach". The recognition of the technical margin is different depending on whether it is positive or negative. IFRS 17 is of retrospective application. This standard It is not applicable on the Group financial statements.
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, 2018, except the adoption of IFRS 16.
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, liquidity risk and capital risk. These risks arise from the unpredictability of financial markets that affect the capacity of projected cash flows and profits subject to a perspective of long term ongoing. Management seeks to minimise potential adverse effects that derive from that uncertainty in its financial performance.
The financial risks management is controlled by Toyota Caetano financial department, according to the policies established by the Group Board of Directors. The Board of Directors has established the main principles of global risk management as well as specific policies for some areas, as interest rate risk and credit risk. As mentioned above, these principles and policies are properly described in the notes to the consolidated financial statements as of December 31, 2018.
In this context, we presented below some risk indicators as of June 30, 2019, considered particularly relevant:
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 CV, S.A.), corresponding to the currency of the economic environment and the ones that better represents its cash flows composition. Foreign currency risk arises mainly from future commercial transactions, as a result of purchases and sales of products and services in a different currency than the functional currency used by each Company.
Foreign currency risk management policies seek to minimize the volatility of investments and transactions made in foreign currencies, aiming to reduce Group's results impact to changes in foreign exchange rates. The Group uses derivative instruments (currency forwards), as the management of foreign currency risk.
The Group foreign currency risk management hedge policies are decided casuistically, considering the foreign currency and country specific circumstances (as at June 30, 2019 and December 31, 2018 and June 30, 2018, this situation is not applicable to any of the Group Subsidiaries).
Foreign currency risk related to the foreign subsidiaries financial statements translation, also named translation risk, presents the impact on net equity of the Holding Company, due to the translation of foreign subsidiaries financial statements.
Foreign subsidiaries assets and liabilities are translated into Euros using the exchange rates at statement of financial position date, and gains and losses in the income statement are translated into Euros using
(Amounts in Euros)
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, 2019 and December 31, 2018 and June 30, 2018 can be summarized as follows:
| Assets | Liabilities | |||||
|---|---|---|---|---|---|---|
| Jun-19 | Dec-18 | Jun-18 | Jun-19 | Dec-18 | Jun-18 | |
| Cape Verde Escudo (CVE) Great Britain Pounds (GBP) Japanese Yen (JPY) |
6.746.542 - - |
6.950.754 - - |
7.071.535 - 126.236 |
1.952.524 31 1.364.938 |
2.421.144 38.096 666.606 |
2.475.350 - 692.231 |
The sensitivity of the Group to foreign exchange rate changes can be summarized as follows (increases/decreases):
| Jun-19 | Dec-18 | ||||
|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | |
| Great Britain Pounds (GBP) Japanese yen (JPY) |
5% 5% |
(2) (68.247) |
- - |
(1.906) (33.330) |
- - |
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 2019 and 2018, the Group has been exposed to the risk of variation of 'instruments at fair value through capital" prices. At June 30, 2019 and December 31, 2018 and June 30, 2018, the referred caption is composed only by shares of the closed property investment Fund Cimóvel – Fundo de Investimento Imobiliário Fechado (Real Estate Investment Fund).
The Group's sensitivity to price variations in "instruments at fair value through capital" can be summarized as follows (increases/decreases):
| Jun-19 | Dec-18 | Jun-18 | |||||
|---|---|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | Net Income | Equity | |
| CIMOVEL FUND | 10% | - | 368.956 | - | 356.668 | - | 378.975 |
| CIMOVEL FUND | -10% | - | (368.956) | - | (356.668) | - | (378.975) |
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, analysing 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:
(i) Interest rate is superior in 0,5 p.p. than the supported interest rate; (ii) Calculation was made using the Group's debt at the end of the year;
(iii) Spreads maintenance throughout the year.
The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some assumptions may be correlated.
| Jun-19 | Dec-18 | Jun-18 | |||||
|---|---|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | Net Income | Equity | |
| Guaranteed account | 0,5 p.p. | - | - | 50.000 | - | 25.000 | - |
| Bank Credits | 0,5 p.p. | 4.617 | - | 4.618 | - | - | - |
| Commercial Paper | 0,5 p.p. | 90.000 | - | 97.000 | - | 154.500 | - |
| Long-term Bank Loan | 0,5 p.p. | 50.000 | - | 50.000 | - | 75.000 | - |
| Bond Loan | 0,5 p.p. | 62.500 | - | 62.500 | - | - | - |
| Total | 207.117 | - | 264.118 | - | 254.500 | - | |
| Guaranteed account | (0,5 p.p.) | - | - | (50.000) | - | (25.000) | - |
| Bank Credits | (0,5 p.p.) | (4.617) | - | (4.618) | - | - | - |
| Commercial Paper | (0,5 p.p.) | (90.000) | - | (97.000) | - | (154.500) | - |
| Long-term Bank Loan | (0,5 p.p.) | (50.000) | - | (50.000) | - | (75.000) | - |
| Bond Loan | (0,5 p.p.) | (62.500) | - | (62.500) | - | - | - |
| Total | (207.117) | - | (264.118) | - | (254.500) | - | |
Group's sensitivity to changes in interest rates is summarized as follows (increases/(decreases)):
Liquidity risk is defined as the risk that the Group could not be able to settle or meet its obligations on time or at a reasonable price.
The existence of liquidity in the Group requires the definition of some parameters for the efficient and secure management of liquidity, enabling maximisation of the return obtained and minimisation of the opportunity costs relating to the liquidity, from a safety and efficient way.
Toyota Caetano Group liquidity risk management has a threefold objective:
(i) Liquidity, which is to ensure permanent access in the most efficient way to enough funds to cover current payments on the respective maturity dates, as well as any unexpected requests for funds;
(ii) Safety, which is the minimisation of the probability of default in the repayment of any application in funds; and
(iii) Financial efficiency, which is ensuring that the Companies maximise the value / minimize the opportunity cost of holding excess liquidity in the short-term.
All excess liquidity is applied in short-term debt amortization, according to economic and financial reasonableness criteria.
As of June 30, 2019 and December 31, 2018, the Group presents a net debt of 79.572.440 Euros and 73.928.900 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 main objective of the Board is to assure the continuity of the operations, providing an adequate remuneration to shareholders and the correspondent benefits to the rest of the stakeholders of the company. For the prosecution of this objective it is fundamental that a careful management of funds invested in the business is assured, trying to keep an optimal capital structure, in order to achieve the desired reduction of the cost of capital. With the purpose of maintaining an adequate capital structure, the Board can propose to the shareholders the measures considered necessary.
The company 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-19 | Dec-18 | Jun-18 | |
|---|---|---|---|
| Debt | 89.760.117 | 91.004.055 | 81.073.415 |
| Cash and cash equivalents | (10.187.677) | (17.075.155) | (5.941.327) |
| Net Debt | 79.572.440 | 73.928.900 | 75.132.088 |
| Equity | 137.438.696 | 137.873.129 | 132.386.838 |
| Leverage Ratio | 36,67% | 34,90% | 36,20% |
The gearing remains between acceptable levels, as established by management.
The Group credit risk results mainly from:
Credit risk is assessed at the initial moment and over time in order to monitor its evolution.
A significant portion of the amounts receivable from customers is dispersed among many entities, a factor that contributes toward reducing the credit concentration risk. As a rule, the Group customers are not assigned a credit rating.
Credit risk is monitored by the Group financial department, under the supervision of the Board of Directors, based on: i) the rating assigned by the credit insurance company, with which the Group has negotiated a credit insurance agreement; (ii) the debtors' corporate nature; iii) the type of transactions originating the accounts receivable; iv) the experience of past transactions; and (v) the credit limits established for each customer.
The Group considers the probability of default upon the initial recognition of the asset and, according to the occurrence of significant increases in credit risk continuously in each reporting period. In order to assess whether there has been a significant increase in credit risk, the Group compares the risk of default occurring by reference to the reporting date, with the risk of default assessed by reference to the date of initial recognition. Adequate and duly supported prospective information is considered. The following indicators are considered:
• Significant changes in the debtor's expected performance and behavior, 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 derecognised, the Group continues to take the necessary measures to recover the amounts owed. In cases of successful recovery, the recovered amounts are recognised in the income statement for the year.
Financial assets are derecognised when there is no real expectation of recovery. The Group classifies a loan or account receivable to be derecognised when the debtor fails to make contractual payments within 30 days.
a) Accounts receivable and Other debtors
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" balances. 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. The expected credit losses include information from prospective estimates. The accounts receivable aging is discriminated in Note 11.
b) Loans granted to related entities
The balances in "Loans granted to related parties" are considered to have a low credit risk and, therefore, impairment in credit losses recognised during the period are limited to expected credit losses estimated for 12 months. These financial assets are considered to have a "low credit risk" when they have a low uncollectible 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, 2018, whenever these amounts are exceeded, these customers' supplies are suspended.
The adjustments for accounts receivable are calculated considering (a) the client risk profile, (b) the average time of receipt, (c) the client financial situation. The movements of these adjustments for the periods ending at June 30, 2019 and 2018 are stated in Note 23.
At June 30, 2019, 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 of customers and other debtors in financial statements, which is net of impairment losses, represents the maximum exposure of the Group to credit risk.
| Deposits Long Term Rating | Rating Agency | Value |
|---|---|---|
| A1 | Moody's | 50.022 |
| A2 | Moody's | 327.726 |
| A3 | Moody's | 283.782 |
| Aa3 | Moody's | 10.201 |
| B3 | Moody's | 122.422 |
| Ba1 | Moody's | 1.338.503 |
| Ba3 | Moody's | 3.158.650 |
| Baa1 | Moody's | 202.604 |
| Baa2 | Moody's | 3.232.426 |
| Caa1 | Moody's | 637.361 |
| Others without rating assigned | 729.194 | |
| Total | 10.092.891 | |
The following table presents, on June 30, 2019, the credit quality of bank deposits:
The ratings presented correspond to ratings assigned by the Rating Agency Moody's.
Exchange rates used in the conversion of foreign affiliated companies, as of June 30, 2019 and December 31, 2018 were as follows:
| 30-06-2019 | |||||
|---|---|---|---|---|---|
| Final Exchange | Average Exchange |
Exchange Rate at the Date of |
Final Exchange | ||
| Currency | Rate for Jun-19 | Rate for Jun-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 |
| 31-12-2018 | |||||
|---|---|---|---|---|---|
| Final Exchange | Average Exchange |
Exchange Rate at the Date of |
Final Exchange | ||
| Currency | Rate for Dec-18 | Rate for Dec-18 | Incorporation | rate for Dec-17 | |
| 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 |
(Amounts in Euros)
The affiliated companies included in consolidation by the full consolidation method and share of capital held as of June 30, 2019 and December 31, 2018, are as follows:
| Companies | Effective | ||
|---|---|---|---|
| Percentage Held | |||
| Jun-19 | Dec-18 | ||
| Toyota Caetano Portugal, S.A. | Parent Company | ||
| Saltano - Investimentos e Gestão (S.G.P.S.), S.A. | - | 99,98% | |
| Caetano Auto CV, S.A. | 81,24% | 81,24% | |
| Caetano Renting, S.A. | 100,00% | 99,98% | |
| Caetano - Auto, S.A. | 98,41% | 98,40% |
These subsidiaries were included in the consolidated financial statements using the full consolidation method, as established in IFRS 10 – "Consolidated Financial Statements" (subsidiary control through the major voting rights and exposure to variable returns in relevant activities).
During the period ended June 30, 2019, there was a change in the composition of the consolidation perimeter with the liquidation of Saltano in May 2019.
As of June 30, 2019, December 31, 2018 and June 30, 2018 cash and cash equivalents detail was the following:
| Jun-19 | Dec-18 | Jun-18 | |
|---|---|---|---|
| Cash | 94.786 | 127.757 | 119.743 |
| Bank Deposits | 10.092.891 | 16.947.398 | 5.821.584 |
| 10.187.677 | 17.075.155 | 5.941.327 | |
(Amounts in Euros)
As of June 30, 2019 and December 31, 2018, the movement in tangible fixed assets, as well as in the respective accumulated depreciation and impairment losses, was as follows:
| 30 -0 6- 20 19 |
|||||||||
|---|---|---|---|---|---|---|---|---|---|
| La nd |
ild ing Bu nd s a Ot he r Co tru cti ns on s |
ine Ma ch ry d an Eq uip nt me |
Tra rt ns po Eq uip nt me |
Ad mi nis tra tiv e Eq uip nt me |
Ot he r F ixe d As set s |
ibl Ta ng e set s in as Pro gr es s |
f Rig ht o e A ts us sse |
To tal |
|
| Gro set As ss s: |
|||||||||
| Op ing Ba lan en ce s |
18 .92 0.0 52 |
90 .55 2.5 69 |
61. 80 2.7 98 |
99 .62 7.8 98 |
8.4 21. 47 2 |
4.5 06 .59 9 |
1.1 32 .87 6 |
- | 28 4.9 64 .26 4 |
| dit ion Ad s |
81 .62 1 |
65 2.1 31 |
26 3.8 65 |
30 .46 4.0 19 |
168 .12 8 |
10 4.8 79 |
28 1.4 23 |
1.5 52 .97 7 |
33 .56 9.0 43 |
| ffs Dis ls a nd W rite po sa -o |
- | - | ( ) 10 .44 3 |
( ) 2.2 10 .01 1 |
( ) 83 2 |
- | - | - | ( ) 2.2 21. 28 6 |
| fer inv ies Tra s t tor ns o en |
- | - | - | ( ) .29 15 0.6 57 |
- | - | - | - | ( ) .29 15 0.6 57 |
| fer fic Tra nd cla ssi ati ns s a re on s |
( ) 2.4 33 .57 9 |
1.0 19 .53 8 |
- | 13 .40 4 |
- | - | ( ) 1.0 19 .53 8 |
- | ( ) 2.4 20 .17 5 |
| din lan En Ba g ce s |
8.0 94 16 .56 |
92 .22 4.2 38 |
62 .05 6.2 20 |
112 .60 4.6 53 |
8.5 88 8 .76 |
8 4.6 11. 47 |
39 4.7 61 |
52 .97 1.5 7 |
29 8.6 01 .18 9 |
| lat ed cia tio nd irm t lo Ac De Im cu mu pre n a pa en sse s: |
|||||||||
| Op ing Ba lan en ce s |
- | 62 .85 9.3 07 |
57 .20 7.2 67 |
40 .52 1.2 79 |
7.3 38 .17 4 |
4.2 45 .54 5 |
- | - | 172 .17 1.5 72 |
| De cia tio pre ns |
- | 1.0 95 .78 1 |
49 3.8 70 |
9.3 44 .12 9 |
90 .31 0 |
34 .47 6 |
- | 10 8.7 19 |
11. 167 .28 5 |
| Dis ls a nd W rite ffs po sa -o |
- | - | ( ) 10 .44 3 |
( ) 1.8 02 .61 2 |
( ) 83 2 |
- | - | - | ( ) 1.8 13 .88 7 |
| fer Tra s t o i tor ies ns nv en |
- | - | - | ( ) 3.1 39 .78 7 |
- | - | - | - | ( ) 3.1 39 .78 7 |
| En din Ba lan g ce s |
- | 63 .95 5.0 88 |
57 .69 0.6 94 |
44 .92 3.0 09 |
7.4 27 .65 2 |
4.2 80 .02 1 |
- | 10 8.7 19 |
178 .38 5.1 83 |
| Ne t T ibl e F ixe d A ts an g sse |
16 .56 8.0 94 |
28 .26 9.1 50 |
4.3 65 .52 6 |
67 .68 1.6 44 |
1.1 61. 116 |
33 1.4 57 |
39 4.7 61 |
1.4 44 .25 8 |
120 .21 6.0 06 |
| La nd |
ild ing Bu nd s a Ot he r Co tru cti ns on s |
ine Ma ch ry d an Eq uip nt me |
Tra rt ns po Eq uip nt me |
Ad mi nis tra tiv e Eq uip nt me |
Ot he r F ixe d As set s |
Ta ibl ts ng e a sse in Pro gr es s |
To tal |
|
|---|---|---|---|---|---|---|---|---|
| Gro set As ss s: |
||||||||
| Op ing Ba lan en ce s |
16 .44 3.8 05 |
89 .68 5.7 56 |
61. 157 .21 3 |
80 .67 5.3 57 |
8.4 09 .70 8 |
4.4 51. 43 3 |
29 1.7 42 |
26 1.1 15 .01 4 |
| Ad dit ion s |
2.5 49 .08 2 |
1.5 08 .97 0 |
1.2 70 .84 7 |
62 .78 8.3 59 |
25 4.0 92 |
60 .39 8 |
1.0 28 .37 7 |
69 .46 0.1 25 |
| Dis ls a nd W rite ffs po sa -o |
( ) 72 .83 5 |
( ) 82 3.0 60 |
( ) 62 5.2 62 |
( ) 5.9 05 .22 2 |
( ) 24 2.3 28 |
( ) 5.2 32 |
( ) 6.3 40 |
( ) 7.6 80 .27 9 |
| fer Tra ns s |
- | 18 0.9 03 |
- | ( ) .93 0.5 96 37 |
- | - | ( ) 18 0.9 03 |
( ) .93 0.5 96 37 |
| En din Ba lan g ce s |
18 .92 0.0 52 |
90 .55 2.5 69 |
61. 80 2.7 98 |
99 .62 7.8 98 |
8.4 21. 47 2 |
4.5 06 .59 9 |
1.1 32 .87 6 |
28 4.9 64 .26 4 |
| cia tio irm Ac lat ed De nd Im t lo cu mu pre n a pa en sse s: |
||||||||
| Op ing Ba lan en ce s |
- | 61. 197 .25 0 |
56 .63 2.1 65 |
33 .60 1.8 57 |
7.6 78 .40 3 |
4.1 83 .72 9 |
- | 163 .29 3.4 04 |
| De cia tio pre ns |
- | 2.1 70 .39 0 |
1.0 11. 76 5 |
19 .60 7.7 43 |
( ) 111 .36 9 |
66 .03 6 |
- | 22 .74 4.5 65 |
| Dis ls a nd rite ffs W po sa -o |
- | ( ) 50 8.3 33 |
( ) 43 6.6 63 |
( ) 21. 39 3.5 3 |
( ) 22 8.8 60 |
( ) 4.2 20 |
- | ( ) 99 9 4.6 .46 |
| fer Tra ns |
- | - | - | ( ) 9.1 66 .92 8 |
- | - | - | ( ) 9.1 66 .92 8 |
| din lan En Ba g ce s |
- | 62 .85 9.3 07 |
.20 7.2 57 67 |
40 .52 1.2 79 |
38 7.3 .17 4 |
4.2 45 .54 5 |
- | 172 72 .17 1.5 |
| Ne t T ibl e F ixe d A ts an g sse |
18 .92 0.0 52 |
27 .69 3.2 62 |
4.5 95 .53 1 |
59 .10 6.6 19 |
1.0 83 .29 8 |
26 1.0 54 |
1.1 32 .87 6 |
112 .79 2.6 92 |
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 costumers.
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.
As of June 30, 2019 and December 31, 2018, the assets acquired through financial leases are presented as follows:
| Jun-19 | |||
|---|---|---|---|
| Accumulated | |||
| Gross Assets | Depreciation | Net Tangible Assets | |
| Tangible Fixed Assets | 74.456.252 | 26.353.439 | 48.102.813 |
| Dec-18 | |||
|---|---|---|---|
| Accumulated | |||
| Gross Assets | Depreciation | Net Tangible Assets | |
| Tangible Fixed Assets | 58.983.523 | 23.003.655 | 35.979.868 |
As of June 30, 2019, December 31, 2018 and June 30, 2018, 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 1.503.095 Euros as the six-month period ended as of June 30, 2019 (1.747.634 Euros as of June 30, 2018) (Note 28).
Additionally, in according with appraisals reported to December 31, 2018, the fair value of those investment properties amounts to, approximately, 46 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, 2019 and December 31, 2018 is made up as follows:
| Jun-19 | Dec-18 | |||||
|---|---|---|---|---|---|---|
| Net | Net | |||||
| accounting | Fair Value | Appraisal | accounting | Fair Value | Appraisal | |
| Location | value | value | ||||
| Vila Nova de Gaia - Av. da República | 123.966 | 1.192.400 | Internal | 84.202 | 1.192.400 | Internal |
| Braga - Av. da Liberdade | - | 1.355.000 | Internal | - | 1.355.000 | Internal |
| Porto - Rua do Campo Alegre | 776.939 | 3.315.000 | External | 795.350 | 3.315.000 | External |
| Viseu - Teivas | 737.016 | 896.000 | Internal | 762.388 | 896.000 | Internal |
| Caldas da Rainha - Rua Dr. Miguel Bombarda | 17.531 | 85.000 | Internal | 17.531 | 85.000 | Internal |
| Viseu - Quinta do Cano | 1.708.912 | 1.625.750 | Internal | 1.713.586 | 1.625.750 | Internal |
| Amadora - Rua Elias Garcia | 175.829 | 149.000 | Internal | 177.559 | 149.000 | Internal |
| Portalegre - Zona Industrial | 176.104 | 173.000 | Internal | 178.674 | 173.000 | Internal |
| Portimão - Cabeço do Mocho | 524.782 | 550.000 | Internal | 424.782 | 550.000 | Internal |
| Vila Real de Santo António - Rua de Angola | - | - | - | 23.911 | 83.000 | Internal |
| Rio Maior | 107.000 | 107.000 | Internal | 107.000 | 107.000 | Internal |
| S João de Lourosa - Viseu | 118.849 | 415.980 | Internal | 452.472 | 487.030 | Internal |
| Vila Nova de Gaia - Av. Vasco da Gama (buildings A e B) | 2.693.567 | 8.692.000 | Internal | 2.802.242 | 8.692.000 | Internal |
| Vila Nova de Gaia - Av. Vasco da Gama (buildings G) | 794.311 | 6.077.000 | Internal | 804.483 | 6.077.000 | Internal |
| Carregado - Quinta da Boa Água / Quinta do Peixoto | 4.965.573 | 19.218.000 | Internal | 4.989.846 | 19.218.000 | Internal |
| Vila Nova de Gaia - Rua das Pereiras | 231.638 | 788.000 | Internal | 237.553 | 788.000 | Internal |
| Castelo Branco - Repair Shop | 739.434 | 1.100.000 | External | 759.135 | 1.100.000 | External |
| Vila Nova de Gaia Land | 2.433.579 | - | - | - | - | |
| 16.325.030 | 45.739.130 | 14.330.714 | 45.893.180 | |||
The investment properties fair value disclosed in December 31, 2018 and 2017 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, 2019 the values of the evaluation will be published at December 31, 2018 on the grounds that, given the generalized inexistence of major works in 2019, the inexistence of relevant claims in 2019 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 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 and 2018.
The movement in the caption "Investment properties" as of June 30, 2019 and December 31, 2018 was as follows:
| 30-06-2019 | |||
|---|---|---|---|
| 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) | (196.854) | (407.297) |
| Transfers | 2.433.579 | - | 2.433.579 |
| Impairment losses | - | - | - |
| Ending Balances | 11.528.795 | 35.252.216 | 46.781.011 |
| Accumulated Depreciation and Impairment losses: | |||
| Opening Balances | - | 30.383.721 | 30.383.721 |
| Depreciations | - | 222.951 | 222.951 |
| Disposals and Write-offs | - | (150.691) | (150.691) |
| Ending Balances | - | 30.455.981 | 30.455.981 |
| Net Investment Properties | 11.528.795 | 4.796.235 | 16.325.030 |
In 2019, the amount in "Transfers" refers to the reclassification of the land located in Vila Nova de Gaia from tangible fixed assets to investment properties.
| 31-12-2018 | |||
|---|---|---|---|
| Gross Assets: | Land | Buildings | Total |
| Opening Balances | 10.135.964 | 36.926.442 | 47.062.406 |
| Additions | - | 20.775 | 20.775 |
| Disposals and Write-offs | (830.305) | (1.538.441) | (2.368.746) |
| Ending Balances | 9.305.659 | 35.408.776 | 44.714.435 |
| Accumulated Depreciation and Impairment losses: | |||
| Opening Balances | - | 30.699.208 | 30.699.208 |
| Depreciations | - | 473.690 | 473.690 |
| Disposals and Write-offs | - | (789.177) | (789.177) |
| Ending Balances | - | 30.383.721 | 30.383.721 |
| Net Investment Properties | 9.305.659 | 5.025.055 | 14.330.714 |
At June 30, 2019 and December 31, 2018 there were not any movements in item "Goodwill".
The item "Goodwill" is totally related to the amount calculated in the acquisition of the affiliate Movicargo whose business was transferred to the parent Toyota Caetano Portugal, S.A.
The Goodwill is not amortized. Impairment tests are made annually to the Goodwill. At June 30, 2019 there are no signs of impairment, so it was not necessary to carry out impairment tests.
(Amounts in Euros)
As of June 30, 2019 and December 31, 2018, the movement in intangible assets, as well as in the respective accumulated amortization and accumulated impairment losses, was as follows:
| 30-06-2019 | |||||
|---|---|---|---|---|---|
| Research and Development Expenses |
Industrial Property |
Goodwill | Computer Programs |
Total | |
| Gross Assets: | |||||
| Opening Balances | 1.477.217 | 551.031 | 81.485 | 2.150.170 | 4.259.903 |
| Additions | - | 5.876 | - | - | 5.876 |
| Changes in Perimeter | - | - | - | (500) | (500) |
| Ending Balances | 1.477.217 | 556.907 | 81.485 | 2.149.670 | 4.265.279 |
| Accumulated Amortization and Impairment losses: |
|||||
| Opening Balances | 1.477.217 | 198.131 | 81.485 | 2.142.706 | 3.899.539 |
| Amortizations | - | 77.568 | - | 3.732 | 81.300 |
| Changes in Perimeter | - | - | - | (500) | (500) |
| Ending Balances | 1.477.217 | 275.699 | 81.485 | 2.145.938 | 3.980.339 |
| Net Intangible Assets | - | 281.208 | - | 3.732 | 284.940 |
| 31-12-2018 | |||||||
|---|---|---|---|---|---|---|---|
| Research and Development Expenses |
Industrial Property |
Goodwill | Computer Programs |
Total | |||
| Gross Assets: | |||||||
| Opening Balances | 1.477.217 | 399.378 | 81.485 | 2.150.170 | 4.108.250 | ||
| Additions | - | 153.701 | - | - | 153.701 | ||
| Ending Balances | 1.477.217 | 551.031 | 81.485 | 2.150.170 | 4.259.903 | ||
| Accumulated Amortization and Impairment losses: |
|||||||
| Opening Balances | 1.449.781 | 76.558 | 81.485 | 2.087.579 | 3.695.403 | ||
| Amortizations | 27.436 | 122.491 | - | 55.127 | 205.054 | ||
| Ending Balances | 1.477.217 | 198.131 | 81.485 | 2.142.706 | 3.899.539 | ||
| Net Intangible Assets | - | 352.900 | - | 7.464 | 360.364 | ||
(Amounts in Euros)
During the period ended as of June 30, 2019, and December 31, 2018 and June 30, 2018 the movements in item "Instruments at fair value through capital" were as follows:
| Non-Current | |||||
|---|---|---|---|---|---|
| Jun-19 | Dec-18 | Jun-18 | |||
| Instruments at fair value through capital | |||||
| Opening balances | 3.633.413 | 3.732.500 | 3.732.500 | ||
| Decrease during the year | (39.904) | - | - | ||
| Increase/(decrease) in fair value | 122.887 | (99.087) | 123.990 | ||
| Ending balances | 3.716.396 | 3.633.413 | 3.856.490 | ||
As of June 30, 2019, "Instruments at fair value through capital" include the amount of 3.689.564 Euros (June 30, 2018: 3.789.754 Euros) corresponding to 580.476 shares of Cimóvel - Real Estate Investment Fund (9,098%), which are recorded at its fair value at June 30, 2019 (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 675.618 Euros. The remaining "Instruments at fair value through capital" refer to small investments in non-listed companies. The Board of Directors consider that the net accounting value is similar to its fair value.
Additionally, the impact in equity during the six-month period ended as of June 30, 2019 and 2018 from recording "Instruments at fair value through capital" at fair value can be summarized as follows:
| Jun-19 | Jun-18 | |
|---|---|---|
| Fair value variation | 122.887 | 123.990 |
| Effect on equity | 122.887 | 123.990 |
As of June 30, 2019, December 31, 2018 and June 30, 2018, this caption breakdown is as follows:
| Jun-19 | Dec-18 | Jun-18 | |
|---|---|---|---|
| Raw and subsidiary Materials | 7.867.671 | 8.885.206 | 6.205.159 |
| Production in Process | 985.273 | 932.748 | 862.355 |
| Finished and semi-finished Products | 2.371.507 | 1.242.750 | 2.646.251 |
| Merchandise | 98.534.186 | 90.219.827 | 79.869.702 |
| 109.758.637 | 101.280.531 | 89.583.467 | |
| Accumulated impairment losses in inventories (Note 23) | (2.813.619) | (2.221.105) | (1.790.989) |
| 106.945.018 | 99.059.426 | 87.792.478 | |
| Jun-19 | Jun-18 | ||||||
|---|---|---|---|---|---|---|---|
| Merchandise | Raw and subsidiary Materials |
Total | Merchandise | Raw and subsidiary Materials |
Total | ||
| Opening Balances | 90.219.827 | 8.885.206 | 99.105.033 | 81.473.495 | 10.413.228 | 91.886.723 | |
| Net Purchases | 156.109.236 | 20.731.834 | 176.841.070 | 170.627.170 | 16.325.828 | 186.952.998 | |
| Transfers to inventories | 15.290.657 | - | 15.290.657 | - | - | - | |
| Ending Balances | (98.534.186) | (7.867.671) | (106.401.857) | (79.869.702) | (6.205.159) | (86.074.861) | |
| Total | 163.085.534 | 21.749.369 | 184.834.903 | 172.230.963 | 20.533.897 | 192.764.860 | |
During the six-month period ended as of June 30, 2019 and 2018, the variation in production was computed as follows:
| Finished and semi-finished products | ||||
|---|---|---|---|---|
| Jun-19 | Jun-18 | |||
| Ending Balances | 3.356.780 | 3.508.606 | ||
| Inventories adjustments | (105) | (3.182) | ||
| Opening Balances | (2.175.498) | (5.567.901) | ||
| Total | 1.181.177 | (2.062.477) | ||
As of June 30, 2019, December 31, 2018 and June 30, 2018, the detail of this caption was as follows:
| CURRENT ASSETS | NON-CURRENT ASSETS | ||||||
|---|---|---|---|---|---|---|---|
| Jun-19 | Dec-18 | Jun-18 | Jun-19 | Dec-18 | Jun-18 | ||
| Customers, current accounts | 74.234.031 | 56.648.436 | 60.881.427 | 705.764 | 494.293 | 561.939 | |
| Doubtful Accounts Receivable | 9.696.611 | 8.838.044 | 9.248.002 | - | - | - | |
| 83.930.642 | 65.486.480 | 70.129.429 | 705.764 | 494.293 | 561.939 | ||
| Accumulated impairment losses in accounts Receivable (Note 23) | (8.963.990) | (8.776.958) | (9.184.332) | - | - | - | |
| 74.966.652 | 56.709.522 | 60.945.097 | 705.764 | 494.293 | 561.939 | ||
Accounts receivable from customers recorded as non-current assets corresponds to the customers of the affiliated company Caetano-Auto, S.A. and Toyota Caetano Portugal, S.A. that are being paid under formal agreements (whose terms of payment may vary between 1 to 7 years, and which bear interests).
Group exposure to credit risk is mainly related to trade receivables resulting from its operational activity. Before accepting new customers, the Group contacts credit rating agencies and performs internal analysis of credit risk, through specific credit control, collection and legal service departments, and assigns credit limits by customer, based on the gathered information.
(Amounts in Euros)
| 30/06/2019 | ||||||
|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 50.118.316 | 5.789.560 | 3.152.972 | 8.944.876 | 68.005.724 | |
| Employees | 45.102 | 3.450 | 3.201 | 51.162 | 102.915 | |
| Independent Dealers | 6.703.878 | 100.256 | 19.050 | 7.972 | 6.831.156 | |
| Total | 56.867.296 | 5.893.266 | 3.175.223 | 9.004.010 | 74.939.795 | |
| 31/12/2018 | ||||||
|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 31.284.576 | 5.780.752 | 2.176.100 | 9.791.002 | 49.032.430 | |
| Employees | 77.032 | 780 | 2.732 | 200.911 | 281.455 | |
| Independent Dealers | 7.426.444 | 363.223 | 27.689 | 11.488 | 7.828.844 | |
| Total | 38.788.052 | 6.144.755 | 2.206.521 | 10.003.401 | 57.142.729 | |
| 30/06/2019 | ||||||
|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Doubtful Accounts Receivable | - | 2.138 | - | 9.694.473 | 9.696.611 | |
| Total | - | 2.138 | - | 9.694.473 | 9.696.611 | |
| 31/12/2018 | ||||||
|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Doubtful Accounts Receivable | 14.123 | 2.275 | 1.378 | 8.820.268 | 8.838.044 | |
| Total | 14.123 | 2.275 | 1.378 | 8.820.268 | 8.838.044 | |
The amounts presented in the consolidated Statement of financial position are net of accumulated impairment losses to doubtful accounts receivable estimated by the Group, in accordance with its experience based on its evaluation of the economic environment at the statement of financial position date. Credit risk concentration is limited, because the customers' basis is wider and not relational. Thus, the Board of Directors understands that the accounting values of accounts receivable are similar to their respective fair value.
| 30/06/2019 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Not Due | - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |||
| Accounts receivable | 29.216.341 | 26.464.273 | 5.905.615 | 3.063.979 | 10.289.587 | 74.939.795 | ||
| Total | 29.216.341 | 26.464.273 | 5.905.615 | 3.063.979 | 10.289.587 | 74.939.795 | ||
| 31/12/2018 | ||||||
|---|---|---|---|---|---|---|
| Not Due | - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |
| Accounts receivable | 15.507.326 | 28.100.550 | 2.700.057 | 1.283.518 | 9.551.278 | 57.142.729 |
| Total | 15.507.326 | 28.100.550 | 2.700.057 | 1.283.518 | 9.551.278 | 57.142.729 |
As of June 30, 2019, December 31, 2018 and June 30, 2018, the detail of this caption was as follows:
| Current Assets | ||||
|---|---|---|---|---|
| Jun-19 | Dec-18 | Jun-18 | ||
| Down Payments to Suppliers | 103.621 | 18.621 | 47.106 | |
| Public Entities (VAT) | 39.361 | 3.051.511 | 6.949.449 | |
| Other debtors | 2.618.207 | 2.748.473 | 2.653.446 | |
| 2.761.189 | 5.818.605 | 9.650.001 | ||
Additionally, this caption includes, as of June 30, 2019 and 2018 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, 2018).
It is noted that this amount also includes as of June 30, 2019 an account receivable in the amount of 640.000 Euros from the related party Fundação Salvador Caetano (618.000 Euros as of December 31, 2018).
(Amounts in Euros)
As of June 30, 2019, December 31, 2018 and June 30, 2018, the detail of this caption was as follows:
| Jun-19 | Dec-18 | Jun-18 | |
|---|---|---|---|
| Accrued Income | |||
| Fleet programs and Bonus suppliers | 760.998 | 2.366.089 | 166.060 |
| Rappel | 593.143 | 1.374.158 | 223.517 |
| Warranty claims | 135.882 | 159.112 | 280.408 |
| Commission | 102.048 | 508.148 | 431.441 |
| Assignment of staff | 49.114 | 27.842 | 46.168 |
| Fee's | 3.002 | 22.699 | - |
| Others | 869.637 | 583.031 | 994.747 |
| 2.513.824 | 5.041.079 | 2.142.341 | |
| Deferred expenses | |||
| Insurance | 187.789 | 178.892 | 339.641 |
| Interest | 139.364 | 125.116 | 56.223 |
| Rentals | 124.739 | 128.636 | 20.173 |
| Others | 838.115 | 857.657 | 600.894 |
| 1.290.007 | 1.290.301 | 1.016.931 | |
| Total | 3.803.831 | 6.331.380 | 3.159.272 |
The detail and movements of deferred tax assets and liabilities recorded in the accompanying consolidated financial statements as of June 30, 2019 and December 31, 2018 is as follows:
| 30-06-2019 | ||||
|---|---|---|---|---|
| Profit and Loss | ||||
| Dec-18 | Impact | Jun-19 | ||
| Deferred tax assets: | ||||
| Provisions not accepted for tax purpose | 296.439 | - | 296.439 | |
| Defined Benefit Plan Liabilities | 1.611.745 | - | 1.611.745 | |
| Write-off of tangible assets/inventories | 926.746 | (410.007) | 516.739 | |
| 2.834.930 | (410.007) | 2.424.923 | ||
| Deferred tax liabilities: | ||||
| Depreciation as a result of legal and free revaluation of fixed assets | (590.517) | - | (590.517) | |
| Effect of the reinvestments of the surplus in fixed assets sales | (113.367) | - | (113.367) | |
| Fair value of fixed assets | (898.732) | - | (898.732) | |
| (1.602.616) | - | (1.602.616) | ||
| Net effect (Note 24) | (410.007) |
(Amounts in Euros)
| Profit and Loss | |||
|---|---|---|---|
| Dec-17 | Impact | Dec-18 | |
| Deferred tax assets: | |||
| Provisions not accepted for tax purpose | 212.335 | 84.104 | 296.439 |
| Tax losses | 1.611.745 | - | 1.611.745 |
| Defined Benefit Plan Liabilities | 489.298 | 437.448 | 926.746 |
| 2.313.378 | 521.552 | 2.834.930 | |
| Deferred tax liabilities: | |||
| Depreciation as a result of legal and free revaluation of fixed assets | (619.498) | 28.981 | (590.517) |
| Effect of the reinvestments of the surplus in fixed assets sales | (116.914) | 3.547 | (113.367) |
| Fair value of fixed assets | (898.732) | - | (898.732) |
| (1.635.144) | 32.528 | (1.602.616) | |
| Net effect (Note 24) | 554.080 | ||
At June 30, 2019 and 2018 the Group there was no tax losses.
As of June 30, 2019 and 2018 tax rates used to compute current and deferred tax assets and liabilities were as follows:
| Tax rates | |||
|---|---|---|---|
| Jun-19 | Jun-18 | ||
| 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 4 year period. Therefore, the tax declarations since the year of 2015 and 2018 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, 2019, 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. | 66,43% |
|---|---|
| - Toyota Motor Europe NV/SA | 27,00% |
In 2019, Salvador Caetano-Auto - S.G.P.S., S.A. acquired 151.366 shares with a nominal value of 1 Euro each, fully paid up and representing 0,44% of the share capital.
According to the General shareholders meeting deliberation, as of April 12, 2019, was paid to shareholders a dividend of 0,20 Euros per share (7.000.000 Euros).
Commercial legislation establishes that at least 5% of the net profit of each year must be appropriated to a legal reserve until this reserve equals the statutory minimum requirement of 20% of the share capital. This reserve is not available for distribution, except in case of dissolution of the Company, but may be used in share capital increases or used to absorb accumulated losses once other reserves have been exhausted.
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 "Instruments at fair value through capital" and cannot be distributed or used to absorb losses (Note 9).
Referring to reserves with free reserves, making them distributable according to the commercial legislation in force.
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).
(Amounts in Euros)
Movements in this caption during the period ended as of June 30, 2019, December 31, 2018 and June 30, 2018 were as follows:
| Jun-19 | Dec-18 | Jun-18 | |
|---|---|---|---|
| Opening Balances as of January 1 | 1.473.222 | 1.387.418 | 1.387.418 |
| Acquisition of non-controlling interests | (4.269) | - | - |
| Net profit attributable to non-controlling interests | 55.754 | 85.804 | 72.765 |
| 1.524.707 | 1.473.222 | 1.460.183 | |
The decomposition of the mentioned value by subsidiary company is as follows:
| % NCI | Non-controlling Interests |
Net profit attributable to Non-controlling Interests |
|
|---|---|---|---|
| Caetano Auto CV, S.A. Caetano Auto, S.A. |
18,76% 1,59% |
886.265 638.442 |
48.158 7.596 |
| 1.524.707 | 55.754 | ||
The resume of financial information at June 30, 2019 related to each subsidiary that is consolidated is presented below:
| Caetano Auto | Caetano Auto CV | |||
|---|---|---|---|---|
| Caption | Jun-19 | Dec-18 | Jun-19 | Dec-18 |
| Non - Current Assets | 58.221.865 | 56.490.292 | 1.326.684 | 1.257.814 |
| Current Assets | 94.174.573 | 90.240.546 | 5.419.858 | 5.692.940 |
| Total assets | 152.396.438 | 146.730.838 | 6.746.542 | 6.950.754 |
| Non - Current Liabilities | 7.682.186 | 8.052.611 | 98.878 | 98.878 |
| Current Liabilities | 105.150.001 | 99.202.695 | 1.951.673 | 2.322.266 |
| Equity | 39.564.251 | 39.475.532 | 4.695.991 | 4.529.610 |
| Revenues | 114.542.922 | 234.877.024 | 6.942.918 | 14.733.922 |
| Operating Results | 118.117 | 5.127.518 | 264.408 | 356.168 |
| Financial Results | 4.847 | 31.019 | - | (6.629) |
| Taxes | (34.245) | (1.436.915) | (98.027) | (125.871) |
| Net Income | 88.719 | 3.721.623 | 166.381 | 223.668 |
As of June 30, 2019, December 31, 2018 and June 30, 2018 the caption "Loans" was as follows:
| Jun-19 | Dec-18 | Jun-18 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Current | Non-Current | TOTAL | Current | Non-Current | TOTAL | Current | Non-Current | TOTAL | |
| Bank Loan | 18.000.000 | 10.000.000 | 28.000.000 | 29.400.000 | 10.000.000 | 39.400.000 | 40.900.000 | 10.000.000 | 50.900.000 |
| Bank Overdrafts | 923.301 | - | 923.301 | 923.669 | - | 923.669 | 1.028.221 | - | 1.028.221 |
| Car Financing | - | - | - | 2.499.961 | - | 2.499.961 | - | - | - |
| Bond Loan | - | 12.500.000 | 12.500.000 | - | 12.500.000 | 12.500.000 | - | - | - |
| Right of Use Leases | 1.444.258 | - | 1.444.258 | - | - | - | - | - | - |
| Finance Leases | 25.548.367 | 21.344.191 | 46.892.558 | 19.715.283 | 15.965.142 | 35.680.425 | 9.266.520 | 19.878.673 | 29.145.193 |
| 45.915.926 | 43.844.191 | 89.760.117 | 52.538.913 | 38.465.142 | 91.004.055 | 51.194.741 | 29.878.673 | 81.073.414 | |
The movement occurred in bank loans, bank overdrafts, other loans, commercial paper programs and bond loan during the period ended June 30, 2019 was as follows:
| Other Variations | |||||
|---|---|---|---|---|---|
| Opening Balances | Increase | Decrease | (*) | ||
| Bank Loan | 10.000.000 | - | - | - | 10.000.000 |
| Bank Overdrafts | 923.669 | - | - | (368) | 923.301 |
| Car Financing | 2.499.961 | - | - | (2.499.961) | - |
| Guaranteed Account | 10.000.000 | 5.000.000 | 15.000.000 | - | - |
| Commercial Paper | 19.400.000 | 70.000.000 | 71.400.000 | - | 18.000.000 |
| Bond Loan | 12.500.000 | - | - | - | 12.500.000 |
| Leases | 35.680.425 | - | 5.339.643 | 17.996.034 | 48.336.816 |
| 91.004.055 | 75.000.000 | 91.739.643 | 15.495.705 | 89.760.117 | |
As of June 30, 2019 and December 31, 2018, the detail of bank loans, overdrafts, other loans and Commercial Paper Programs, as well as its conditions, were as follows:
| 30/06/2019 | ||||
|---|---|---|---|---|
| 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 | ||
| Mutual Loans | 923.301 | 5.500.000 | ||
| Bank Overdrafts | - | 4.350.000 | ||
| Commercial Paper: | ||||
| Toyota Caetano Portugal | 13.000.000 | 16.000.000 | 27/02/2017(*) | 3 years |
| Toyota Caetano Portugal | 5.000.000 | 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 | 24/02/2019 | 1 year |
| 18.923.301 | 60.850.000 | |||
| 41.423.301 | 83.350.000 | |||
| 31/12/2018 | ||||
|---|---|---|---|---|
| Description/Beneficiary Company | Used Amount | Limit | Beginning Date |
Date-Limit |
| Non-current | ||||
| Mutual Loans | ||||
| Toyota Caetano Portugal | 10.000.000 | 10.000.000 | 11/03/2016 | 5 years |
| Bond Loan | ||||
| Toyota Caetano Portugal | 12.500.000 | 12.500.000 | 09/08/2018 | 5 years |
| 22.500.000 | 22.500.000 | |||
| Current | ||||
| Guaranteed account | 10.000.000 | 12.000.000 | ||
| Bank Overdrafts | 923.669 | 5.500.000 | ||
| Confirming | - | 10.000.000 | 22/06/2012 | 5 years |
| Car Financing | 2.499.961 | 13.500.000 | 15/10/2014 | 5 years |
| Commercial Paper: | ||||
| Toyota Caetano Portugal | 15.400.000 | 18.000.000 | 27/02/2017(*) | 3 years |
| Toyota Caetano Portugal | - | 10.000.000 | 18/08/2015 | 5 years |
| Toyota Caetano Portugal | 4.000.000 | 4.000.000 | 17/07/2017 | 5 years |
| Toyota Caetano Portugal | - | 5.000.000 | 10/11/2016 | 5 years |
| Toyota Caetano Portugal | - | 4.000.000 | 24/02/2018 | 1 year |
| 32.823.630 | 82.000.000 | |||
| 55.323.630 | 104.500.000 | |||
(*) with amortization of 2 million euros per year
Next, we present below the debt amount outstanding, for which there have been granted mortgages (Note 34): - Commercial Paper: 13.000.000.
Interests relating to the above mentioned bank loans are indexed to Euribor interest rates, increased with a spread that varies from 0,75 to 2,75 bps.
The Company and its affiliates have available credit facilities as of June 30, 2019 amounting to approximately 83 Million Euros (of which have been utilized 41 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 invested in different financial institutions, with no excessive concentration in any of them.
(Amounts in Euros)
The item "Financial Lease" (current and non-current) is related to the purchase of facilities and equipment. The detail of this caption, as well as the reimbursement plan can be summarized as follows:
| Current | Non-current | |||||||
|---|---|---|---|---|---|---|---|---|
| Contract | Leasing's | 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | TOTAL | TOTAL |
| 2028278 | Commercial facilities | |||||||
| Capital | 98.263 | 99.002 | 69.453 | - | - | 168.455 | 266.718 | |
| Interests | 1.663 | 924 | 182 | - | - | 1.106 | 2.769 | |
| 559769 | Commercial facilities | |||||||
| Capital | 24.802 | 25.189 | 25.582 | 25.982 | 329.933 | 406.686 | 431.488 | |
| Interests | 6.512 | 6.125 | 5.732 | 5.333 | 29.427 | 46.617 | 53.129 | |
| 626064 | Commercial facilities | |||||||
| Capital | 175.311 | 181.547 | 188.004 | 194.690 | 245.044 | 809.285 | 984.596 | |
| Interests | 31.064 | 24.829 | 18.372 | 11.685 | 4.634 | 59.520 | 90.585 | |
| 2032103 | Commercial facilities | |||||||
| Capital | 15.198 | 15.976 | 64.203 | - | - | 80.179 | 95.377 | |
| Interests | 4.424 | 3.646 | 2.307 | - | - | 5.953 | 10.377 | |
| 30000343 | Commercial facilities | |||||||
| Capital | 42.009 | 42.857 | 43.722 | 44.605 | 368.713 | 499.897 | 541.906 | |
| Interests | 10.454 | 9.607 | 8.741 | 7.859 | 28.401 | 54.608 | 65.062 | |
| 2017554 | Commercial facilities | |||||||
| Capital | 46.079 | 165.687 | - | - | - | 165.687 | 211.766 | |
| Interests | 4.769 | 3.348 | - | - | - | 3.348 | 8.117 | |
| 105149 | Commercial facilities | |||||||
| Capital | 33.621 | 33.937 | - | - | - | 33.937 | 67.558 | |
| Interests | 1.633 | 566 | - | - | - | 566 | 2.199 | |
| Several | Vehicles | |||||||
| Capital | 19.074.626 | 8.135.733 | - | - | - | 8.135.733 | 27.210.359 | |
| Interests | 239.666 | 31.644 | - | - | - | 31.644 | 271.310 | |
| Several | Industrial Equipment | |||||||
| Capital | 6.038.458 | 3.961.730 | 3.528.149 | 2.439.757 | 1.114.696 | 11.044.332 | 17.082.790 | |
| Interests | 433.989 | 250.861 | 135.321 | 60.581 | 15.855 | 462.618 | 896.607 | |
| Total Capital | 25.548.367 | 12.661.658 | 3.919.113 | 2.705.034 | 2.058.386 | 21.344.191 | 46.892.558 | |
| Total Interests | 734.174 | 331.550 | 170.655 | 85.458 | 78.317 | 665.980 | 1.400.155 |
Loans
| 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | Total | |
|---|---|---|---|---|---|---|
| Loan - mutual contract | - | 10.000.000 | - | - | - | 10.000.000 |
| Bond Loan | - | - | - | - | 12.500.000 | 12.500.000 |
| Bank Overdrafts | 923.301 | - | - | - | - | 923.301 |
| Commercial Paper | 18.000.000 | - | - | - | - | 18.000.000 |
| Right of use Leases | 1.444.258 | - | - | - | - | 1.444.258 |
| Financial Leases | 25.548.367 | 12.661.658 | 3.919.113 | 2.705.034 | 2.058.386 | 46.892.558 |
| Total Loans | 45.915.926 | 22.661.658 | 3.919.113 | 2.705.034 | 14.558.386 | 89.760.117 |
| 12m | 12 - 24m | 24 - 36m | 36 - 48m | >48m | Total | |
|---|---|---|---|---|---|---|
| Loan - mutual contract | 166.146 | 275.500 | - | - | - | 441.646 |
| Financial Leases | 734.174 | 331.550 | 170.655 | 85.458 | 78.317 | 1.400.155 |
| Bond Loan | 155.382 | 318.576 | 315.972 | 316.840 | 316.840 | 1.423.611 |
| Total interests | 1.055.702 | 925.626 | 486.627 | 402.299 | 395.157 | 3.265.412 |
As of June 30, 2019, December 31, 2018 and June 30, 2018 this caption was composed of current accounts with suppliers, which end at short term.
The Group, relating to financial risk management, has implemented policies to ensure that all liabilities are paid for within the defined payment period.
(Amounts in Euros)
As of June 30, 2019, December 31, 2018 and June 30, 2018 the detail of other creditors was as follows:
| Current Liabilities | |||
|---|---|---|---|
| Jun-19 | Dec-18 | Jun-18 | |
| Income Taxes withheld | 476.534 | 376.634 | 499.264 |
| Value Added Taxes | 14.455.635 | 9.438.099 | 12.730.820 |
| Vehicles Tax | 2.265.501 | 2.275.238 | 2.415.007 |
| Custom Duties | 3.315 | 381 | 4.954 |
| Employee's social contributions | 850.804 | 682.841 | 804.550 |
| Taxes of local Authorities | 247.207 | 207.376 | 277.962 |
| Others | 9.388 | 14.364 | 11.676 |
| Public Entities: Sub-total | 18.308.384 | 12.994.933 | 16.744.233 |
| Shareholders | 20.291 | 15.542 | 15.707 |
| Advances from Customers | 986.425 | 736.091 | 731.814 |
| Other Creditors | 10.700.960 | 1.037.283 | 1.390.223 |
| Other Creditors: Sub-total | 11.707.676 | 1.788.916 | 2.137.744 |
| 30.016.060 | 14.783.849 | 18.881.977 | |
There are no debts related to public entities (State and Social Security).
As of June 30, 2019, December 31, 2018 and June 30, 2018 the caption "Income tax" can be summarized as follows:
| Current Liabilities | |||
|---|---|---|---|
| Jun-19 | Dec-18 | Jun-18 | |
| Public Entities: | |||
| Income Tax Payable (Note 24) | 1.008.189 | 1.939.181 | 1.787.661 |
| 1.008.189 | 1.939.181 | 1.787.661 | |
(Amounts in Euros)
As of June 30, 2019, December 31, 2018 and June 30, 2018 the caption "Other Current Liabilities" was as follows:
| Jun-19 | Dec-18 | Jun-18 | |
|---|---|---|---|
| Accrued Cost | |||
| Vacation pay and bonus | 8.407.089 | 5.993.832 | 7.337.201 |
| Advertising Campaigns | 1.847.997 | 3.594.310 | 4.707.054 |
| Specialization cost assigned to vehicles sold | 1.625.624 | 779.842 | 1.435.113 |
| Commission | 1.391.345 | 967.344 | 742.533 |
| Advance External Supplies and Services | 1.210.055 | 489.929 | 776.196 |
| Warranty claims | 896.736 | - | 831.110 |
| Accrual for Vehicles Tax | 712.490 | 804.876 | 576.660 |
| Supply costs | 673.249 | 363.377 | 17.893 |
| Rappel charges attributable to fleet managers | 530.870 | 486.430 | 592.514 |
| Insurance | 289.391 | 220.314 | 268.839 |
| Municipal Property Tax | 142.331 | 126.000 | 155.804 |
| Royalties | 140.164 | 71.170 | 77.311 |
| Interest | 136.752 | 236.354 | 83.423 |
| Rents | - | - | 43.737 |
| Specialized work | 91.620 | - | 35.443 |
| Others | 2.064.226 | 2.505.080 | 513.483 |
| 20.159.939 | 16.638.858 | 18.194.314 | |
| Deferred Income | |||
| Vehicle maintenance contracts | 7.415.869 | 5.844.505 | 4.121.001 |
| Bonuses by suppliers | 869.925 | - | - |
| Subsidy granted | 28.653 | 28.653 | 501.360 |
| Publicity recuperation | 27.997 | 29.283 | 34.205 |
| Interest Charged to Customers | 27.061 | 16.832 | 26.598 |
| Others | 207.014 | 176.425 | 277.179 |
| 8.576.519 | 6.095.698 | 4.960.343 | |
| Total | 28.736.458 | 22.734.556 | 23.154.657 |
Toyota Caetano Portugal (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, 2019, the following companies of Toyota Caetano Group were associates of the Salvador Caetano Pension Fund:
The Pension Fund was set up to, while Toyota Caetano Group maintains the decision to make contributions to the referred fund, provide employees (beneficiaries), at their retirement date, the right to a pension complement, which is not subject to update and is based on a percentage of the salary, among other conditions. To cover these responsibilities, it was constituted an Independent Fund (managed by BPI Vida e Pensões, S.A.).
However, following a request to change the functioning of these compensations, requested from the ISP - Instituto de Seguros de Portugal, this Defined Benefit Plan started to cover, as of January 1, 2008, only current retired workers, former employees of the Group with "deferred pensions" and the current employees and staff of the Group over 50 years of age and at least 15 years of service to the Group.
The actuarial assumptions used at 2018 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 1,57%, respectively. To this date were used the assumptions as December 31, 2018.
At December 31, 2018 the Group's responsibilities to the defined benefit plan and the assets of the Fund allocated can be summarized as follows:
| Defined benefit plan | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Responsibility amount | 32.818.838 | 35.024.830 | 35.367.964 | 33.997.681 | 33.574.520 | 29.059.458 | 29.650.534 |
| Fund Amount | 25.925.723 | 27.510.086 | 27.541.632 | 28.297.093 | 29.075.997 | 28.855.219 | 28.444.454 |
The net liability of Toyota Caetano Portugal Group evidenced above is guaranteed by a provision recorded in the amount of about 9.792.511 euros, reflected in the statement of financial position under "Defined Benefit Obligations".
Movements in provisions and accumulated impairment losses over the six-month period ended as of June 30, 2019, and June 30, 2018 were as follows:
| 30-06-2019 | |||||
|---|---|---|---|---|---|
| Opening Balances |
Increases | Disposals | Other regularizations |
Ending Balances |
|
| Accumulated impairment losses in investments | 2.780.809 | - | - | (100.000) | 2.680.809 |
| Accumulated impairment losses in accounts receivable (Note 11) | 8.776.958 | 187.032 | - | - | 8.963.990 |
| Accumulated impairment losses in inventories (Note 10) | 2.221.105 | 736.964 | - | (144.450) | 2.813.619 |
| Provisions | 881.547 | 100.855 | (200.000) | (52.257) | 730.145 |
| Opening Balances |
Increases | Other regularizations |
Ending Balances |
|
|---|---|---|---|---|
| Accumulated impairment losses in investments | 2.780.809 | - | - | 2.780.809 |
| Accumulated impairment losses in accounts receivable (Note 11) | 9.184.332 | - | - | 9.184.332 |
| Accumulated impairment losses in inventories (Note 10) | 1.452.410 | 338.579 | - | 1.790.989 |
| Provisions | 514.525 | 175.543 | (66.209) | 623.859 |
As of June 30, 2019 and June 30, 2018, the caption "Provisions" has the following breakdown:
| Jun-19 | Jun-18 | |
|---|---|---|
| Warranty provisions | 631.266 | 324.967 |
| Litigations in progress | 98.879 | 298.892 |
| 730.145 | 623.859 | |
The income tax for the six-month period ended as of June 30, 2019 and 2018 was as follows:
| Jun-19 | Jun-18 | |
|---|---|---|
| Income Tax Deferred income taxes (Note 14) |
1.928.828 410.007 |
2.605.432 89.551 |
| 2.338.835 | 2.694.983 | |
The detail of sales and services rendered by geographic markets, during the six-month periods ended as of June 30, 2019 and 2018, was as follows:
| Jun-19 | Jun-18 | |||
|---|---|---|---|---|
| Market | Amount | % | Amount | % |
| National | 197.040.209 | 86,36% | 202.693.108 | 85,51% |
| Belgium | 23.686.205 | 10,38% | 25.875.244 | 10,92% |
| African Countries with Official Portuguese Language | 7.096.355 | 3,11% | 7.087.068 | 2,99% |
| Spain | 20.636 | 0,01% | 25.767 | 0,01% |
| Germany | 3.711 | 0,00% | 1.137 | 0,00% |
| United Kingdom | 4.399 | 0,00% | 13.535 | 0,01% |
| Others | 315.376 | 0,14% | 1.336.602 | 0,56% |
| 228.166.891 | 100,00% | 237.032.461 | 100,00% | |
Additionally, sales and services rendered by activity were as follows:
| Jun-19 | Jun-18 | ||||
|---|---|---|---|---|---|
| Activity | Amount | % | Amount | % | |
| Vehicles | 188.525.392 | 82,63% | 198.636.743 | 83,80% | |
| Spare Parts | 23.757.613 | 10,41% | 24.221.355 | 10,22% | |
| Repairs and after sales services | 14.315.345 | 6,27% | 13.748.275 | 5,80% | |
| Others | 1.568.541 | 0,69% | 426.088 | 0,18% | |
| 228.166.891 | 100,00% | 237.032.461 | 100,00% | ||
(Amounts in Euros)
The caption "External supplies and services" was as follows:
| Jun-19 825.212 10.062.100 |
Jun-18 984.795 |
|---|---|
| 8.424.538 | |
| 2.940.373 | 3.046.564 |
| 5.293.398 | 3.555.585 |
| 246.611 | 230.714 |
| 465.370 | 452.568 |
| 180.870 | 283.069 |
| 935.478 | 856.038 |
| 436.321 | 418.947 |
| 187.480 | 171.182 |
| 105.401 | 100.515 |
| 20.790 | 11.371 |
| 1.699.622 | 1.609.313 |
| 669.758 | 685.341 |
| 796.095 | 702.018 |
| 127.386 | 108.068 |
| 106.383 | 113.886 |
| 1.887.415 | 1.674.677 |
| 973.323 | 859.342 |
| 52.945 | 51.818 |
| 861.147 | 763.517 |
| 8.515.237 | 8.546.349 |
| 1.986.749 | 1.697.838 |
| 380.909 | 435.693 |
| 779.909 | 698.302 |
| 254.137 | 215.192 |
| 11.194 | 11.043 |
| 437.020 | 407.020 |
| 4.665.319 | 5.081.261 |
| 23.425.907 | 21.658.619 |
At June 30, 2019, the caption "Other services" includes about 2,5 million euros, relating to guarantees claims (2,8 million: June 30, 2018).
Payroll expenses are decomposed as follows:
| Jun-19 | Jun-18 | |
|---|---|---|
| Payroll Management | 250.560 | 243.252 |
| Payroll Personnel | 14.334.914 | 14.231.869 |
| Benefits Plan | 996.711 | 1.019.720 |
| Termination Indemnities | 95.538 | 62.385 |
| Social Security Contribution | 3.486.930 | 3.362.031 |
| Workmen´s Insurance | 210.650 | 183.235 |
| Others | 1.626.720 | 1.597.482 |
| 21.002.023 | 20.699.974 | |
The remuneration of members of the board of Toyota Caetano Portugal, S.A. in the six-months ended as of June 30, 2019 and 2018 were as follows:
| Board Members | Jun-19 | Jun-18 |
|---|---|---|
| Board of Directors Fixed remunerations |
250.560 | 243.252 |
During the six-month period ended as of June 30, 2019 and 2018, the average number of personnel was as follows:
| Employees 1.124 1.097 Workers 484 461 1.608 1.558 |
Personnel | Jun-19 | Jun-18 |
|---|---|---|---|
(Amounts in Euros)
As of June 30, 2019 and 2018, the caption "Other operating income" and "Other operating expenses" were as follows:
| 6.317 2.698.100 |
12.433 2.274.267 |
|---|---|
| 1.238.579 | |
| 423.198 | 393.018 |
| 865.522 | 883.576 |
| 741.612 | 765.606 |
| 1.269.005 | 1.727.821 |
| 1.711.339 | 1.538.044 |
| 1.913.545 | 1.739.322 |
| 2.227.698 | 1.747.634 |
| 2.210.836 | 2.450.710 |
| 2.829.649 | 3.549.059 |
| 6.647.087 | 6.336.374 |
| Jun-19 | Jun-18 |
| 142.781 |
From the table presented above, we have:
| Jun-19 | Jun-18 | |
|---|---|---|
| Taxes | 762.469 | 729.153 |
| Bad debts | - | 353.307 |
| Losses in Inventories | 14.667 | - |
| Prompt payment discounts granted | 3.902 | 1.599 |
| Losses in other investments | 1.815 | - |
| Losses in other non-financial investments | 26.187 | 311.697 |
| Corrections to previous years | 244.630 | 12.924 |
| Donations | 2.200 | 136.055 |
| Subscriptions | 15.298 | 16.032 |
| Fines and penalties | 14.754 | 12.178 |
| Others | 446.677 | 761.449 |
| 1.532.599 | 2.334.394 | |
(Amounts in Euros)
Consolidated net financial results as of June 30, 2019 and 2018 were as follows:
| Expenses and Losses | Jun-19 | Jun-18 |
|---|---|---|
| Interest | 830.478 | 807.357 |
| Other Financial Expenses | 337.211 | 66.643 |
| 1.167.689 | 874.000 | |
| Income and Gains | Jun-19 | Jun-18 |
|---|---|---|
| Interest | 10.535 | 4.891 |
| 10.535 | 4.891 | |
We summarize in the table below a resume of financial instruments of Toyota Caetano Group as of June 30, 2019, December 31, 2018 and June 30, 2018:
| Financial Assets | Financial Liabilities | ||||||
|---|---|---|---|---|---|---|---|
| Note | Jun-19 | Dec-18 | Jun-18 | Jun-19 | Dec-18 | Jun-18 | |
| Instruments at fair value through capital | 9 | 3.716.396 | 3.633.413 | 3.856.490 | - | - | - |
| Accounts Receivable | 11 | 75.672.416 | 57.203.815 | 61.507.036 | - | - | - |
| Other Debtors - Current | 12 | 2.721.828 | 2.767.094 | 2.700.552 | - | - | - |
| Other current assets | 13 | 2.513.824 | 5.041.079 | 2.142.341 | - | - | - |
| Loans | 17 | - | - | - | 88.951.084 | 91.004.055 | 81.073.415 |
| Other creditors - Current | 19 | - | - | - | 11.707.676 | 1.788.918 | 2.137.744 |
| Accounts payable | 18 | - | - | - | 43.864.631 | 39.907.558 | 38.666.258 |
| Other current liabilities | 21 | - | - | - | 20.329.369 | 16.740.724 | 15.817.456 |
| Cash and Cash Equivalents | 4 | 10.187.677 | 17.075.155 | 5.941.327 | - | - | - |
| 94.812.141 | 85.720.556 | 76.147.746 | 164.852.760 | 149.441.255 | 137.694.873 | ||
Financial Instruments at Fair Value
| Financial Assets | ||||
|---|---|---|---|---|
| Note | Jun-19 | Dec-18 | Jun-18 | |
| Instruments at fair value through capital | 9 | 3.716.396 | 3.633.413 | 3.856.490 |
| 3.716.396 | 3.633.413 | 3.856.490 | ||
| Instruments at fair value through capital |
Derivate Financial Instruments | ||||
|---|---|---|---|---|---|
| At fair value | At cost | Cash Flow Hedge Accounting |
Negotiation | Level | |
| Cimóvel Fund Others |
3.689.564 - |
- 26.832 |
- - |
- - |
1) 3) |
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 Consolidated Income Statement and Equity
| Impact on equity | |||||
|---|---|---|---|---|---|
| Jun-19 Dec-18 Jun-18 |
|||||
| Instruments at fair value through capital | 122.887 | (99.087) | 123.990 | ||
| 122.887 | (99.087) | 123.990 | |||
During the six-month period ended as of June 30, 2019 the minimum payments for leases amounted to approximately 0,5 million Euros. Of that amount, 0,4 million relate to payments with maturity of one year and 0,1 million relate to payments to occur in more than one year.
| Minimum payments of lease | Jun-19 |
|---|---|
| Not more than one year More than one year and no more than five More than five years |
430.333 111.148 - |
| 541.480 | |
(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 Toyota Caetano Group and the related parties can be summarized as follows:
| Co mm erc |
ial De bts |
Pro | duc ts |
Fix ed |
ets ass |
Ser | vic es |
Oth | ers | |
|---|---|---|---|---|---|---|---|---|---|---|
| Co mp any |
eiv abl Rec e |
abl pay e |
Sal es |
rch Pu ase s |
rch Pu ase s |
Dis als pos |
der ed Ren |
Ob tai ned |
Co sts |
Inc om e |
| Am ori m B rito & Sar din ha, Ld a. |
2.2 14 |
- | - | - | - | - | - | - | - | 3.6 00 |
| ânt Atl ica Co hia Po rtu de Pes S.A mp an gue sa ca, - |
5.1 73 |
- | - | - | - | - | - | - | - | - |
| Au to Par tne r Im obi liár ia, S.A |
1.5 95 |
17.7 49 |
- | - | - | - | - | - | - | - |
| Ca bo Ve rde Re nt- a-C Lda ar, |
367 .99 0 |
33 .111 |
290 .54 0 |
- | - | - | - | 104 .85 8 |
- | - |
| Ca eta Ac tiv e, S .A. no |
4.0 40 |
43 0 |
1.2 49 |
- | - | - | 6.9 01 |
- | - | 237 |
| Ca eta Ae aut ic, S.A no ron |
477 .96 2 |
8.6 59 |
1.73 0 |
- | - | - | 14. 016 |
- | - | 333 .38 5 |
| iera mé rcio óve is, Ca eta Bav Co de Au tom S.A no - |
157 .94 4 |
124 .12 5 |
78. 48 3 |
30 7.4 84 |
- | - | 29. 88 6 |
( ) 11.4 44 |
4.7 56 |
103 .02 2 |
| Cit tiv e ( ), Ca eta Ac No rte S.A no y e |
556 .75 9 |
153 .55 4 |
1.3 34 .01 3 |
367 | - | 105 .58 8 |
34 5 |
60 .29 9 |
124 .00 8 |
( 26) 7.9 |
| Ca eta Dri Sp ort e U rba n, S .A. no ve, |
40 .63 4 |
62. 30 2 |
8.7 17 |
54 .78 3 |
- | - | 16. 717 |
19. 269 |
- | 3.9 45 |
| Ca eta Ene , S. A. no rgy |
41. 535 |
6.3 98 |
5.7 29 |
616 | - | - | 9.0 97 |
223 | - | 1.2 29 |
| Ca eta Fór la, S.A no mu |
14. 80 0 |
109 .78 9 |
5.3 55 |
327 .29 2 |
- | - | 2.6 53 |
( ) 11.2 80 |
- | 2.8 76 |
| Áfr Ca eta For la E ast ica , S. A. no mu |
3.1 06 |
- | 35 | - | - | - | - | - | - | 2.4 90 |
| Ca eta For la G alic ia, SL U no mu |
130 | - | - | - | - | - | - | - | - | 130 |
| Áfr Ca eta Fór la W est ica , S. A. no mu |
115 | - | - | - | - | - | - | - | - | 94 |
| Ca eta Mo tor s, S .A. no |
47. 650 |
194 | 6.8 48 |
49 | - | - | 8.0 76 |
1.7 59 |
- | 1.5 17 |
| Áfr ica Ca eta Mo , S. A. no ve |
188 | - | - | - | - | - | - | - | - | 153 |
| Ca eta On e C V, L da. no |
( ) 20 .116 |
1.6 45 |
22. 30 7 |
20 .39 8 |
- | - | 18. 88 7 |
1.2 37 |
- | - |
| Ca eta Par ts, Lda no |
39 .85 8 |
1.6 61. 552 |
86 5.1 67 |
2.6 66 .84 3 |
- | - | 878 | 5.5 65 |
- | 816 |
| Ca eta Pow S.A no er, |
54 .62 1 |
28 .18 7 |
9.9 08 |
62. 180 |
- | - | 13. 100 |
( ) 6.0 46 |
- | 1.16 2 |
| ( .), Ca eta Ret ail S.G .P.S S.A no |
132 .54 5 |
( 0) 810 .33 |
63 | - | - | - | 19 | 80 8 |
- | 110 .90 9 |
| Ca eta Ret ail Esp aña , S. A.U no |
1.9 70 |
- | - | - | - | - | - | - | - | 1.6 02 |
| Áfr Ca eta Sq uad ica , S. A. no ra |
52 | - | - | - | - | - | - | - | - | 43 |
| Ca eta Sta r, S .A. no |
16. 64 3 |
- | 40 6 |
1 | - | - | - | 41 | ( ) 795 |
42 9.1 |
| hni Ca eta Tec k, L da. no |
( 1) 14. 83 |
5.4 83 |
949 | 16. 30 1 |
- | - | 42 1.6 |
88 5 |
- | 02 1.0 |
| Ca eta noB Fab rica ão de Ca ias , S. A. us ç rro çar - |
3.4 72. 38 1 |
244 .39 7 |
70. 012 |
37. 732 |
- | 150 | 70. 157 |
61. 38 3 |
48 .60 8 |
1.2 35 .16 6 |
| Ca ets u P ubl icid ade , S. A. |
33 .52 2 |
1.10 3.9 23 |
44 .73 0 |
32 .50 0 |
- | - | 2.4 58 |
1.6 97. 49 2 |
1.6 41. 031 |
3.3 18 |
| Ca lus Co mé rcio de Au tom óve is, S.A rp - |
86 .58 7 |
- | 24 .08 1 |
- | - | - | 34 .62 4 |
65 | - | 8.0 05 |
| Ch oic e C S.A ar, |
1.4 60 |
- | - | - | - | - | - | 8.1 40 |
8.1 40 |
19. 02 8 |
| CO CIG A - Co nst ões Civ is d e G aia , S. A. ruç |
5.0 98 |
114 .61 2 |
- | - | 184 .05 3 |
- | 5.8 31 |
41. 618 |
61. 05 8 |
5.4 17 |
| Co ial De bts mm erc |
Pro | duc ts |
Fix ed ets ass |
Ser vic es |
Oth | ers | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Co mp any |
Rec eiv abl e |
abl pay e |
Sal es |
Pu rch ase s |
Pu rch ase s |
Dis als pos |
Ren der ed |
Ob tai ned |
Co sts |
Inc om e |
| CO VIM So c. A íco la, Silv íco la e Im obi liár ia, S.A gr - |
- | 2.4 60 |
- | - | - | - | - | 2.0 00 |
2.0 00 |
- |
| Fin mé rcio óve is, log Alu Co de Au tom S.A gu er e - |
48 4.5 42 |
36 2.7 12 |
949 .88 8 |
975 .96 6 |
- | - | 214 .22 0 |
776 .62 6 |
40 4.7 21 |
57. 45 4 |
| Fun daç ão Sal vad Ca eta or no |
639 .119 |
- | - | - | - | - | - | - | - | 181 |
| , ( .), Gru Sal vad or C aet S.G .P.S S.A po ano |
10 | - | - | - | - | - | - | - | - | 34 |
| érin ar ( is), Gu Re nt- a-C Do Ld a. - |
64 3.6 54 |
7.7 44 |
75. 84 4 |
- | - | - | 514 .76 2 |
6.5 65 |
1.9 11 |
118 .39 5 |
| Hy und ai P ort l, S .A. uga |
2.3 75 |
- | 3.6 34 |
- | - | - | 8.8 06 |
- | - | 24 .47 9 |
| Ibe rica r M oto rs C ádi z, S .L. |
- | - | - | - | - | - | - | - | - | ( 5) 38 |
| Ibe rica r R eic S.A om sa, |
- | - | - | - | - | - | - | - | - | ( ) 752 |
| Lid So luc ion S.L era es, |
155 | 7.6 36 |
- | - | - | - | - | 55 .47 8 |
- | 126 |
| ilec ícu ipa Lus tra Ve los e E nto s, S .A. qu me - |
34 .82 1 |
127 .87 6 |
34 .61 1 |
11.5 27 |
- | - | 34 .26 9 |
20 6.8 10 |
72. 68 1 |
19. 58 2 |
| dia MD S A uto Me ão de Seg s, S .A. ç uro - |
110 .98 6 |
- | 750 | - | - | - | 107 | - | - | 544 |
| Mo vic Mo vim ent ão Ind ust rial , Ld arg o - aç a. |
7.6 08 |
533 .64 0 |
- | 48 4.4 79 |
- | - | 5.0 90 |
42 2.0 23 |
33 0.7 59 |
7.7 70 |
| sór P.O .A.L Pav ime nta ões e O bra s A ias , S. A. ç ces . - |
17. 80 6 |
- | - | - | - | - | - | - | - | - |
| Por tia Co mé rcio Int aci l e Par tic ipa ões , S. A. nga ern ona ç - |
220 .54 0 |
42 .10 3 |
186 .04 4 |
- | - | - | 23. 571 |
45 .58 6 |
15. 821 |
32 .04 5 |
| RA RC ON Arq uit ect e C ulta dor ia, S.A ura ons - |
25. 148 |
110 .97 8 |
17.9 43 |
- | 51. 05 2 |
- | - | 53 .88 6 |
53 .88 6 |
256 |
| Rig Co ltor ia e Ge stã o, S .A. or - nsu |
77. 507 |
1.0 26. 656 |
35 | - | 6.9 28 |
- | 82 .28 8 |
1.8 41. 378 |
1.0 70. 078 |
109 .27 9 |
| Ro ber t H uds LT D on, |
83 4 |
- | 83 4 |
- | - | - | - | - | - | - |
| Áfr ica , ( .), Sal vad or C aet Au to S.G .P.S S.A ano |
73 | - | - | - | - | - | - | - | - | 60 |
| ( .), Sal vad or C aet Au to, S.G .P.S S.A ano |
52 | - | - | - | - | - | - | - | - | 43 |
| liár SIM OG A - So cie dad e Im obi ia d e G aia , S. A. |
1.3 74 |
- | - | - | - | - | - | - | - | - |
| Sóz ó P ort l, S .A. uga |
7.5 73 |
- | - | - | - | - | - | - | - | 10. 82 5 |
| Tu risp aiv So cie dad e T urí stic a P aiv e, S .A. a - ens |
3.5 06 |
- | - | - | - | - | - | - | - | 2.8 50 |
| Áfr ( .), VA S ica S.G .P.S S.A |
10 | - | - | - | - | - | - | - | - | 9 |
| Va s C abo Ve rde , So cie dad e U nip oal , S. A. ess |
245 .99 1 |
( 39) 1.3 |
51. 629 |
47. 48 5 |
- | - | 50 .31 3 |
3.7 37 |
- | 117 .54 0 |
| 8.0 55 .30 9 |
5.0 86 .24 6 |
4.0 91. 534 |
5.0 46 .00 3 |
242 .03 3 |
105 .73 8 |
1.16 8.7 13 |
5.3 88 .96 1 |
3.8 38 .66 3 |
2.3 40 .69 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 on June 30, 2019 and 2018, is as follows:
| NA TIO NA L |
FO RE |
||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ve hic les |
Ind ust rial Eq uip nt me |
Oth ers |
Ve hic |
les | Ind ust rial Eq uip |
nt me |
Rem ls ova |
Co lida 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) |
( 3) 67. 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 |
( 25) 34 7.3 |
18 | 9 377 .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 |
33 5.0 01 |
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 |
(Amounts in Euros)
| /0 6/2 30 |
018 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NA TIO NA L |
FO | |||||||||||||||
| Ve hic les |
Ind ust rial Eq uip nt me Oth |
Ve hic les ers |
Rem ls ova |
Rem ls ova |
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 |
42 .09 9 |
266 .06 6.5 94 |
8.6 15. 50 6 |
18. 037 .26 2 |
7.6 57. 113 |
2.6 47. 322 |
874 .38 4 |
- | 25. | 98 3.8 61 |
12. 327 .00 4 |
107 .69 3 |
14. 111 |
4.5 57 |
( 91) 98 .98 8.6 |
243 .38 8.8 15 |
| Inc om e |
||||||||||||||||
| Op tio nal inc era om e |
( 47) 1.0 |
7.2 37. 95 0 |
211 .59 0 |
( 8) 1.0 60 .03 |
671 .49 7 |
1.4 48 .76 9 |
733 .64 0 |
( 8) 13. 98 |
89 2.2 32 |
60 5.3 92 |
6.6 45 |
6.5 20 |
2.0 18 |
( 3) 13. 89 |
10. 727 .28 7 |
|
| Fin ial inc anc om e |
4.6 56 |
( 7) 581 .64 |
( 01) 6.2 |
( 6) 148 .46 |
( ) 18. 138 |
( 91) 6.9 |
( ) 694 17. |
( 23) |
( ) 697 74. |
( ) 19. 554 |
( 2) 30 |
( ) 40 |
( 11) |
- | ( 09) 86 9.1 |
|
| Net Inc ith ntr olli int sts om e w non -co ng ere |
2.6 88 |
5.2 37. 30 3 |
182 .79 5 |
( 8) 1.0 20 .18 |
48 6.6 77 |
1.0 73. 958 |
628 .08 5 |
( ) 10. 772 |
60 8.9 69 |
43 9.2 17 |
4.7 25 |
4.8 27 |
1.4 94 |
( 2) 476 .58 |
7.16 3.1 95 |
|
| Oth Inf ati er orm on |
||||||||||||||||
| Tot al c olid ate d a ts ons sse |
18. 647 .56 3 |
316 .77 8.7 19 |
9.6 98 .52 1 |
58 .61 3.0 60 |
10. 014 .30 8 |
1.5 80 .96 5 |
27. 395 .70 5 |
64 .57 4.5 11 |
- | 7.9 79. 634 |
- | - | - | ( 06) 207 .34 0.5 |
30 7.9 42 .48 1 |
|
| Tot al c olid ate d li abi litie ons s |
2.9 25. 557 |
211 .19 92 4.5 |
7.0 70. 573 |
60 .24 9.6 27 |
60 4.3 37. 4 |
0.5 52 34 |
27. 913 0 .57 |
04 .40 2 3.6 |
- | 38 8 3.1 37. |
- | - | - | ( 21) .21 8.2 145 |
175 .55 5.6 43 |
|
| Ca ital Ex p pen ses |
84 .00 9 |
1.12 9.5 50 |
62. 781 |
27. 021 .13 4 |
- | 18. 83 3 |
2.0 93 .92 4 |
230 | - | 81. 553 |
- | - | - | 212 .69 1 |
30 .70 4.7 06 |
|
| De cia tio pre n |
328 .20 5 |
82 3.0 88 |
813 .87 1 |
5.3 01. 30 6 |
35 .57 3 |
25. 728 |
3.0 81. 168 |
243 | - | 88 .31 6 |
- | - | - | 179 .88 9 |
10. 677 .38 5 |
|
The line "Turnover" includes Sales, Services Rendered and the amount of about 6.663.182 Euros (6.356.354 Euros as of June 30, 2018) 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.
As of June 30, 2019, December 31, 2018 and June 30, 2018, Toyota Caetano Group had assumed the following financial commitments:
| Commitments | Jun-19 | Dec-18 | Jun-18 |
|---|---|---|---|
| Credits | 246.391 | 253.063 | 96.391 |
| Guarantees of Imports | 5.664.423 | 4.000.000 | 5.597.416 |
| 5.910.814 | 4.253.063 | 5.693.807 | |
The amounts presented classified as "Guarantees for Imports", includes the amount of 4 million Euros related with guarantees on imports provided to Customs Agency.
Following the 13 million Euros debt contracting, 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 first half of 2019.
In September 2000, the European Commission approved a Directive regarding end-of-life vehicles and the responsibility of Producers/Distributors for dismantling and recycling them.
Producers/Distributors will have to support at least a significant part of the cost of the dismantling of vehicles that went to the market after July 1, 2002, as well as in relation to vehicles produced before this date, but presented as of January 1, 2007.
This legislation will impact Toyota vehicles sold in Portugal. Toyota Caetano and Toyota are closely monitoring the development of Portuguese National Legislation in order to access the impact of these operations in its financial statements.
It is our conviction, in accordance with studies performed on the Portuguese market, and taking in consideration the possible usage of the vehicles parts resulting from the dismantlement, that the effective impact of this legislation in the Company accounts will be reduced or nil.
Meanwhile, and according to the legislation in force (Dec. /Law 196/2003), the Company signed a contract with "ValorCar – Sociedade de Gestão de Veículos em Fim de Vida, Lda." - a licensed entity for the management of an integrated system of VLF- the transfer of the liabilities in this process.
The earnings per share for the six-month period ended as of June 30, 2019 and 2018 were computed based on the following amounts:
| Jun-19 | Jun-18 | |
|---|---|---|
| Net Income Basic Diluted |
6.446.949 6.446.949 |
7.163.195 7.163.195 |
| Number of shares | 35.000.000 | 35.000.000 |
| Earnings per share (basic and diluted) | 0,184 | 0,205 |
During the six-month period ended as of June 30, 2019 and June 30, 2018 there were no changes in the number of shares outstanding.
From the end of the semester to the present date, Salvador Caetano -Auto- S.G.P.S., S.A. has acquired 639.491 shares of nominal value of 1 Euro each, fully realized and paid up.
On August 8, 2019, Salvador Caetano -Auto- S.G.P.S., S.A., as a shareholder of Toyota Caetano Portugal, proposed to deliberate, under the terms and for the purposes of paragraph b) of number 1 of article 27 of the Portuguese Security Code, the loss by Toyota Caetano Portugal S.A. of the quality of publicly-held company.
The consolidated financial statements were approved by the Board of Directors on August 29th, 2019.
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 JOSE REIS DA SILVA RAMOS –President MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS KATSUTOSHI NISHIMOTO MATTHEW PETER HARRISON RUI MANUEL MACHADO DE NORONHA MENDES
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 2019 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.
We analysed the limited revision Report elaborated by the registered auditor in CMVM (Comissão Mercado Valores Mobiliários) under number 9077, with which we agree.
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 2019 accurately reflect the result of all operations developed in that same period by the Group Toyota Caetano Portugal, S.A.
Vila Nova de Gaia, 30th August 2019
José Domingos da Silva Fernandes – Chairman Alberto Luis Lema Mandim – Member Daniel Broekhuizen – Member
(Free translation from the original in Portuguese)
We have reviewed the accompanying consolidated financial statements of Toyota Caetano Portugal, S.A. (the Entity), which comprise the consolidated statement of financial position as at 30 June 2019 (which shows total assets of Euro 342,949,423 and total shareholder's equity of Euro 137,438,696, including a net profit of 6,391,195), the consolidated statements of income by nature, comprehensive income, changes in equity and cash flows for the six-month period then ended, and the accompanying explanatory notes to these consolidated financial statements.
The Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Accounting Standard 34 – Interim Financial Reporting as adopted by the European Union, as well as to create and maintain appropriate systems of internal control to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express a conclusion on the accompanying consolidated financial statements. We conducted our review in accordance with ISRE 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity and other technical and ethical standards and recommendations issued by the Institute of Statutory Auditors. Those standards require that we conduct the review in order to conclude whether anything has come to our attention that causes us to believe that the consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 – Interim Financial Reporting as adopted by the European Union.
A review of financial statements is a limited assurance engagement. The procedures performed mainly consist of making inquiries and applying analytical procedures, and evaluating the evidence obtained.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing (ISAs). Accordingly, we do not express an opinion on these consolidated financial statements.
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. o′Porto Bessa Leite Complex, Rua António Bessa Leite, 1430 - 5º, 4150-074 Porto, Portugal Tel +351 225 433 000 Fax +351 225 433 499, www.pwc.pt Matriculada na CRC sob o NUPC 506 628 752, Capital Social Euros 314.000 Inscrita na lista das Sociedades de Revisores Oficiais de Contas sob o nº 183 e na CMVM sob o nº 20161485
Based on our review, nothing has come to our attention that causes us to believe that accompanying consolidated financial statements of Toyota Caetano Portugal, S.A. as at 30 June 2019 are not prepared, in all material respects, in accordance with International Accounting Standard 34 – Interim Financial Reporting as adopted by the European Union.
29 August 2019
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. Registered in the Comissão do Mercado de Valores Mobiliários with nr. 20161485 represented by:
José Miguel Dantas Maio Marques, R.O.C.
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