Quarterly Report • Aug 31, 2016
Quarterly Report
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- Consolidated Accounts -
José Lourenço Abreu Teixeira – Chairman Manuel Fernando Monteiro da Silva – Deputy Chairman Jorge Manuel Coutinho Franco da Quinta – 1st Secretary Maria Olívia Almeida Madureira – 2nd Secretary
José Reis da Silva Ramos – Chairman Maria Angelina Martins Caetano Ramos – Member Salvador Acácio Martins Caetano – Member Miguel Pedro Caetano Ramos – Member Matthew Peter Harrison – Member Nobuaki Fujii – Member Rui Manuel Machado de Noronha Mendes – Member Yoichi Sato – Alternate Member
José Domingos da Silva Fernandes - Chairman Alberto Luis Lema Mandim – Member Daniel Broekhuizen – Member Maria Lívia Fernandes Alves – Alternate Member Kenichiro Makino – Alternate Member
José Pereira Alves, Ph.D., or José Miguel Dantas Maio Marques, Ph.D., representing Pricewaterhouse Coopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. [Statutory Auditors Firm] António Joaquim Brochado Correia - Alternate Member
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 summary way.
In the first semester of 2016, the Plant produced a total of 1,249 vehicles, thus completing the first year of the Land Cruiser 70 project (Jul '15/Jun '16) with 2,530 vehicles produced. This number is in keeping with what we had forecast for this period.
In the PPO/PDI activity, 2,232 vehicles were transformed/prepared, in keeping with the same period from the previous year.
At the start of this year, we placed greater focus on training, supported under the skill and multiskilling development project, capable of increasing the capabilities of the plant and of its employees for the future.
For the second semester, we expect product changes and even greater focus on costreducing activities.
| PRODUCTION | 2016 (JAN-JUN) | 2015 | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|
| Toyota Physical Units | 1.249 | 1.629 | 1.664 | 1.111 | 1.381 |
| Converted Physical Units | 2.232 | 4.353 | 3.271 | 2.339 | 2.174 |
| Total Employees | 199 | 206 | 170 | 181 | 190 |
We also highlight the following events:
Accumulated production of 300,000 plant-assembled vehicles, on 5 February, 2016;
A new time bank signed between Employees and the Company, making labour more flexible in order to meet market needs and fluctuations.
Audit conducted by APCER as part of the Quality Management System ISO 14001 (renewal) and Quality ISO 9001 (follow-up), on 23, 24 and 27 May.
Audit coordinated by TME with support from Tokyo Marine Kiln, Risk Assessment – assessment of fire hazards the facility is exposed to and its responsiveness in critical scenarios.
In the 1st semester of 2016, the rising trend from the last few years remained unchanged, with the overall market growing some 18%.
Such recovery is based on the positive development of both passenger vehicles and light commercial vehicles, which have increased by 17.9% and 16.2%, respectively.
In the first semester of the year, Toyota achieved total sales of 5,335 units, translating into a 9.3% increase, compared to the same period in the previous year.
Toyota's performance was different, depending on whether we are talking about Light Passenger Vehicles or Light Commercial Vehicles:
This performance hinges on the growth of sales volume of the Yaris and Auris, the RAV4, whose new model was launched in late 2015, as well as in increased hybrid vehicle sales (+75% compared to 2015).
This drop occurs because the Dyna model was discontinued in late 2015.
Prospects are favourable for the second semester of the year.
Light Passenger Vehicles are expected to keep up the good performance, through continued investment in hybrid vehicles and with the launch of the new C-HR model, which represents Toyota's inroads into the Crossover segment, which has achieved sturdy growth in the last few years.
As concerns the Light Commercial Vehicles market, the outlook is for market share recovery, due to the launch of 2 important New-Generation Models – Hilux and Proace – in the pick-up and van segments. This will certainly bring about greater sales volume.
Lexus maintained the sales volume of the first semester of the past year
For the 2nd semester, we expect improvement in the brand's performance, hinged on greater streamlining of Lexus' distribution network, which will be associated with normalised supply of vehicles from Japan.
| MARKET CHM | TOYOTA + BT Sales | |||||||
|---|---|---|---|---|---|---|---|---|
| 1st | ||||||||
| semester. | Variation | 1st. Sem.'15 | 1st. Sem.'16 | Variation | ||||
| '15 | '16 | % | Qtd. | Quota | Quota | % | ||
| CB | 544 | 581 | 6.8% | 166 | 30.5% | 195 | 33.6% | 17.5% |
| WH | 1036 | 773 | -25.4% | 648 | 62.5% | 300 | 38.8% | -53.7% |
| TOTAL CHM | 1580 | 1354 | -14.3% | 814 51.5% |
495 | 36.6% | -39.2% |
Source: ACAP
In the 1st semester of 2016, the domestic market for cargo handling machines (CHM) decreased by 14.3%, compared to the same period in 2015.
This variation resulted in 6.8% growth for the counterbalanced equipment segment and a 25.4% slide in the warehouse equipment segment.
However, it should be pointed out that this decrease compared to the previous year mirrors normal market correction, as in 2015 this was influenced by a large BT fleet deal comprising 349 pieces of equipment.
Overall Toyota / BT sales decreased 39.2%.
As explained in the market analysis, this fact was basically due to the large BT fleet deal in the 1st semester of 2015, thus enabling our market share to rise to unusually high figures (62.5%)
Upon performing the corresponding analysis by segment, we noticed the following:
Regarding the Toyota Counterbalanced Forklifts, in the first six months of the year, 195 units were sold, representing sales growth of 17.5%, and a cumulative share of 33.6%, indicating some stability in this segment, where Toyota has remained the leader for several years now.
In relation to the BT warehouse equipment 300 units were sold in the first 6 months, representing a 53.7% drop in sales and an accumulated share quota of 38.8%.
Overall, Toyota/BT remains the market leader with an accumulated share quota of 36.6%.
Considering the upcoming vacation period, there will be a slowdown in operations until mid-September, at which time such operations should return to normal, with a slight increase in the last few months of the year, as has been customary.
With regard to the budget, in terms of number of units, we expect to be in compliance therewith, since its degree of implementation by June'16 amounts to 71.1% of the annual budget.
| MEuros | |||
|---|---|---|---|
| Parts | Sales st Sem. 2015 1 |
Sales st Sem. 2016 1 |
% Variation |
| Toyota Genuine | 11,977 | 11,551 | -3.6% |
| Local Parts | 1,159 | 1,203 | 3.8% |
| Accessories | 1,162 | 1,307 | 12.5% |
| Merchandising | 136 | 138 | 1.5% |
| Total | 14,434 | 14,199 | -1.63% |
The reduction and ageing of the car pool and the lower average mileage of vehicles have been adversely influencing After-Sales business results.
However, while maintaining a pro-active position, Toyota Caetano Portugal is committed to streamlining programs that contribute toward recovering and carrying on the After-Sales business in the automotive industry, with particular focus on customer retention at the Toyota repair shop. Overall, this has caused goals to be met during the 1st semester.
Main tools for streamlining the business, as influenced during the period under consideration:
The idea is to invite them to conduct the pre-inspection and/or Scheduled Inspection for the next two months.
Caetano Auto's turnover in the first semester of 2016 was analogous to that of the previous year, having achieved 93.5 million euros and invoicing 4,888 new and used vehicles.
In 2016, the weight of the cost of goods sold on the company's turnover still comprises the same ratio as in 2015, and so the margin remains virtually unchanged; 15.5% in 2016, versus 15.4% in 2015.
Also in terms of the main expenses, especially Personnel expenditures and/or Supplies and external services, the figure for 2016 is comparable to that of 2015, as a result of a continued effort, chiefly in fixed expenditures.
As for amortisations and especially considering the assets held by Caetano Auto, mainly property, this heading still accounts for over 1 million euros per semester, significantly influencing the end result achieved.
Following this framework, we should also add that, in the first semester of 2016, Caetano Auto "contributed" toward the Group's results, with a pre-tax figure of 313,000 euros, compared to 260,000 euros achieved in the same period of the previous year.
In this first semester of the year, National Assembly elections were held in Cape Verde. The MPD, the opposition party in the last 15 years, won these elections. This political change had direct influence on the positive deviation in Caetano Auto CV, S.A.'s new vehicle sales. The main sales channels favourably affected were "companies" (building construction) and "official bodies."
As forecast in the last year, work started at Ilhéu de Santa Maria, in the city of Praia. This major tourist investment alone will be a major boost to the construction industry, as we forecast a good 2nd semester in terms of commercial vehicle sales.
| 2015 | 2016 | Variation | ||||
|---|---|---|---|---|---|---|
| SEGMENT | BRAND | Qty. | % | |||
| Light Passenger Vehicles | Toyota | 35 | 42 | +7 | +20% | |
| Light Commercial Vehicles | Toyota | 83 | 116 | +33 | +40% | |
| Heavy Commercial Vehicles | Toyota | 5 | 10 | +5 | +100.00% | |
| 123 | 168 | +45 | +37% |
Compared to the same period of 2015, Caetano Auto, CV, S.A sold 45 more units (+37%), with expected business margins maintained.
The models that contributed the most toward the achieved growth were Dyna, Hiace and Hilux commercial vehicles, along with the Avensis model of passenger vehicles.
For its part, the Corolla model (nearing the end of production) and the Fortuner (with the new model to be launched in July) experienced reductions in their marketing.
| SALES | 2015 | 2016 | % Variation |
|---|---|---|---|
| Parts/Accessories | 77,521 | 68,860 | -11.2% |
| Workshop (Labour) | 16,262 | 17,809 | +9.5% |
| 93,783 | 86,669 | -7.6% |
((Amounts in thousands CVE)
In terms of After-Sales, on the one hand, Labour sales rose (+9.5%) chiefly in the area of mechanics, as the sale of parts and accessories dropped 11.2%. The main deviation is centred on counter parts and crash components.
The reduction of units in operation (UIOs) resulting from lower vehicle marketing levels occurred in the last few fiscal years somehow justifies the decrease noted and already forecast. With the economic recovery and the gradual increase of vehicle sales, the after-sales area will unequivocally mirror the growth of the "serviceable" pool, while naturally improving their performance.
With regard to the PGO+ assessment, Caetano Auto achieved a result of 84%, which places it at the level of European facilities.
This business unit concluded the 1st semester with 1,963 fleet units, accounting for a 36.2% rise compared to the same period from the previous fiscal year. The fleet shows the following structure:
| Passenger Vehicles: | 1,644 units | (83.75%) |
|---|---|---|
| Industrial Equipment: | 319 units | (16.25%) |
Turnover came to 1.9 ME, for a 13.3% rise compared to the same period in the previous year.
However, it should be pointed out that some 500 vehicles were purchased in the month of June for the RAC segment, whose impact on Turnover alone will have repercussions in the following semester.
For its part, Reintegration expenses experienced an increase of around 30%, due to the fleet increase, as mentioned.
In relation to the 2nd semester, there is a positive outlook, as we expect to dispose some 600 RAC vehicles, which will give rise to significant gains, thereby favourably contributing toward the company's end result.
Over the first semester of 2016, Toyota Caetano Group's consolidation perimeter remained unchanged, when compared to the end of the year 2015 and the same period of 2015.
In the semester under analysis the Group presents a turnover of approximately 176 million euros, nearly 27 million euros higher than the one obtained in the same period of 2015. This growth is directly related to the project for the assembly of off-road vehicles for export at the Ovar manufacturing unit, which only came into effect from the second semester of 2015 onwards. So, the contribution of the automotive industry to the Group's turnover is of approximately 24 million euros, compared to the nearly 8 million years recorded in the same period of 2015.
With the aim of continuously striving to position, the brand Toyota as a key player in the automotive market, there was the need to implement a strategy to reduce the trade margin that, together with an appropriate management of the costs related to the business, allowed obtaining an E.B.I.T.D.A. of approximately 10.3 million euros, nearly 1.2 million euros higher than the one recorded in 2015.
The negative financial results of approximately 1 million euros are similar to the ones recorded in the same period of 2015, reflecting the effectiveness of the negotiation to lower the indebtedness price, considering that it grew 26% compared to the same period under analysis. The growth in credit is directly related to the increase of financial leases, which is also clear in the tangible fixes assets heading.
In view of the above, together with the fact that in the second quarter of 2016 the variation in the Income Tax includes an amount of approximately 750 thousand euros, regarding a received reimbursement of tax additionally paid in 2007 and now recovered as a result of a judicial decision, on a contestation in due time elaborated, it was possible to achieve a consolidated net profit of approximately 2 million euros in the semester in question, almost double in the same period of 2015.
The level of financial autonomy of 47% reflects an appropriate management of the capital structure.
In order to summarize the progress of the business and performance of the Toyota Caetano Portugal Group, the table below shows the comparative aggregates expressed in thousands of euros:
| Jun'15 | Jun'16 | Variation | |
|---|---|---|---|
| Turnover | 149,071 | 176,316 | 18.3% |
| Gross Profit | 27,199 | 30,471 | 12.0% |
| % (f) sales | 18.2% | 17.3% | |
| External supplies and services | 17 226 | 18 190 | 5,6% |
| % (f) sales | 11,6% | 10,3% | |
| Staff expenses | 19,593 | 20,044 | 2.3% |
| % (f) sales | 13.1% | 11.4% | |
| E.B.I.T.D.A. | 9,116 | 10,310 | 13.1% |
| % (f) sales | 6.1% | 5.8% | |
| Operating income | 2,810 | 2,942 | 4.7% |
| % (f) sales | 1.9% | 1.7% | |
| Net financial income | -961 | -1,010 | -5.1% |
| % (f) sales | -0.6% | -0.6% | |
| Gross Cash Flow | 8,115 | 9,556 | 17.8% |
| % (f) sales | 5.4% | 5.4% | |
| Consolidated net profit for the year | 1,084 | 1,992 | 83.7% |
| % (f) sales | 0.7% | 1.1% | |
| Net Bank Credit | 47,068 | 59,692 | 26.8% |
| Level of financial autonomy | 49.2% | 47.2% |
Loans and advances to clients
Credit risk at Toyota Caetano, mostly results from loans on its Clients, related to operating activity.
The main objective of credit risk management at Toyota Caetano is to ensure effective collection of operating receivables from Clients in accordance with the negotiated terms and conditions.
In order to mitigate the credit risk arising from potential default of payment by Clients, the Group companies exposed to this type of risk have:
Established a specific department for analysis and follow-up of Credit Risk;
Implemented proactive credit management processes and procedures, always supported by information systems;
Hedge mechanisms (credit insurances, letters of credit, bank guarantees etc.).
As a result of the significant proportion of variable rate debt in its Consolidated Balance Sheet, and of the consequent interest payment cash flows, Toyota Caetano is exposed to interest rate risk.
Toyota Caetano has been making use of financial derivatives to hedge, at least partially, its exposure to changes in interest rates.
As a geographically diverse Group, with subsidiaries in Cape Verde, exchange rate risk result essentially from business transactions, arising from the purchase and sale of goods and services in currencies other than the functional currency of each business.
The exchange rate risk management policy seeks to minimize volatility in investments and operations stated in foreign currency, by making the Group's income less sensitive to exchange rate fluctuations. The Group's foreign exchange risk management policy is towards case-by-case appreciation of the opportunity to cover this risk, taking particularly into account the specific circumstances of the currencies and countries in question.
Toyota Caetano has been making use of financial derivatives to hedge, at least partially, its exposure to changes in exchange rates.
Liquidity risk management at Toyota Caetano seeks to ensure that the company has the capacity to obtain the timely funding required to carry out its business activities, implement its strategy and meet its payment obligations when due, while avoiding the need to obtain such funding on unfavorable terms.
To this end, liquidity management in the Group includes the following:
a) Consistent financial planning based on forecasts of operating cash flows in accordance with different time horizons (weekly, monthly, annual and multi-annual);
b) Diversification of funding sources;
c) Diversification of maturities of issued debt in order to avoid too excessive concentration for debt payment on short periods of time;
d) Using partner Banks to open up short-term credit lines, commercial paper programs and other types of financial operations, to ensure a balance between adequate levels of liquidity and commitment fees incurred.
Since the end of 1st semester 2016 and up to current date, no relevant facts occurred worth of being mentioned.
Pursuant to article 246 (1-c) of the Código de Valores Mobiliários (Portuguese Securities Code) we state that, to the best of our knowledge, Toyota Caetano Portugal consolidated financial statements, for the 1st half of 2016, were prepared in compliance with the applicable accounting standards, giving a true and fair view of the company's assets and liabilities, financial position and income and that the interim management report faithfully describes the information required under article 246 (2) of CVM.
Vila Nova de Gaia, 31st August 2016
The Board of Directors
José Reis da Silva Ramos – Chairman Maria Angelina Martins Caetano Ramos Salvador Acácio Martins Caetano Miguel Pedro Caetano Ramos Matthew Peter Harrison Nobuaki Fujii Rui Manuel Machado de Noronha Mendes
(Pursuant to article 447 of the Portuguese Commercial Companies Code, and according to article 9(1) (c), and of article 14(7), both from Regulation 5/2008 issued by the Securities Market Regulating Entity - CMVM)
In compliance with the provisions of article 447 of the Portuguese Commercial Companies Code, it is hereby declared that, on June 30th, 2016, 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 2016, 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 directors and auditors hold corporate positions are as follows:
GRUPO SALVADOR CAETANO, SGPS, S.A. (of which Salvador Acácio Martins Caetano is the Chairman of the Board of Directors, Maria Angelina Martins Caetano Ramos is the Deputy-Chairman of the Board of Directors, and José Reis da Silva Ramos and Miguel Pedro Caetano Ramos are Members of the Board of Directors) performed no transactions and, thus, on 30 June, 2016, held 21,288,281 shares, with a nominal value of 1 euro each.
FUNDAÇÃO SALVADOR CAETANO (of which José Reis da Silva Ramos is the Chairman of the Board of Directors, Maria Angelina Martins Caetano Ramos is the spouse of the Chairman of the Board of Directors, and Salvador Acácio Martins Caetano and Rui Manuel Machado de Noronha Mendes are Members of the Board of Directors) performed no transactions and thus, on 30 June 2016, held 138,832 shares, with a nominal value of 1 euro each.
COVIM – Sociedade Agrícola, Silvícola e Imobiliária, S.A. (of which Maria Angelina Martins Caetano Ramos is the Chairwoman of the Board of Directors, and José Reis da Silva Ramos is the spouse of the Chairwoman of the Board of Directors) performed no transactions and thus, on 30 June, 2016, held 393,252 shares, with a nominal value of 1 euro each.
COCIGA - Construções Civis de Gaia, S.A. (of which Maria Angelina Martins Caetano Ramos is the Chairwoman of the Board of Directors, José Reis da Silva Ramos is the spouse of the Chairwoman of the Board of Directors, and Salvador Acácio Martins Caetano is a Member of the Board of Directors) performed no transactions and thus, on 30 June, 2016, held 290 shares, with a value of 1 euro each.
For the purpose provided in the final section of article 447(1) of the Portuguese Commercial Companies Code (companies in a control or group relationship with the company), it is hereby stated that:
• José Reis da Silva Ramos, Chairman of the Board of Directors, holds:
1 This percentage includes shares held by the spouse
• Maria Angelina Martins Caetano Ramos, Member of the Board of Directors, holds:
1 This percentage includes shares held by the spouse
• Salvador Acácio Martins Caetano, Member of the Board of Directors, holds:
1 This percentage includes shares held by the spouse
• Miguel Pedro Caetano Ramos, Member of the Board of Directors, holds:
In accordance with article 448(4) of the Commercial Companies Code, the following is the list of shareholders that, on June 30th, 2016, held, at least, 10%, 33% or 50% of the share capital of this company, as well as of the shareholders that have ceased to hold the aforementioned capital percentages:
| Shareholders Holders of at least 10% |
Shares | |||
|---|---|---|---|---|
| Held 1 31.12.2015 |
Purchased 2016 |
Sold 2016 |
Held 2 30.06.2016 |
|
| TOYOTA MOTOR EUROPE NV/SA ____________ |
9,450,000 | -- | -- | 9,450,000 |
1Share capital on 31.12.2015: € 35,000,000.00, represented by 35,000,000 shares with the nominal value of € 1.00 each. 2Share capital on 30.06.2016: € 35,000,000.00, represented by 35,000,000 shares with the nominal value of € 1.00 each.
| Shareholders Holders of at least 50% |
Shares | |||||
|---|---|---|---|---|---|---|
| Held 1 | Purchased | Sold | Held 2 | |||
| 31.12.2015 | 2016 | 2016 | 30.06.2016 | |||
| GRUPO SALVADOR CAETANO, SGPS, SA _______________ |
21,288,281 | -- | -- | 21,288,281 |
1Share capital on 31.12.2015: € 35,000,000.00, represented by 35,000,000 shares with the nominal value of € 1.00 each. 2Share capital on 30.06.2016: € 35,000,000.00, represented by 35,000,000 shares with the nominal value of € 1.00 each.
(Pursuant to Regulation 5/2008, issued by the Portuguese Securities Market Regulating Entity - CMVM)
On June 30th, 2016, the shareholders with qualified shareholdings in the company's share capital are the following:
| SHAREHOLDER ______________ |
Shares | % of voting rights |
|---|---|---|
| Group Salvador Caetano - SGPS, SA | 21,288,281 | 60.824 |
| Toyota Motor Europe NV/SA | 9,450,000 | 27.000 |
| Salvador Fernandes Caetano (Heirs of) ______________ |
1,399,255 | 3.998 |
| ASSETS | Notes | 30/06/2016 | 31/12/2015 | |
|---|---|---|---|---|
| NON-CURRENT ASSETS | ||||
| Goodwill | 7 | 611 997 | 611 997 | |
| Intangible Assets | 8 | 1 290 000 | 1 460 526 | |
| Tangible Fixed Assets | 5 | 95 803 396 | 83 589 227 | |
| Investment properties | 6 | 16 388 315 | 16 665 199 | |
| Available for sale Financial Investments | 9 | 3 367 091 | 3 463 450 | |
| Deferred tax Assets | 14 | 2 077 153 | 2 248 042 | |
| Accounts Receivable | 11 | 138 841 | 46 553 | |
| Total non-current assets | 119 676 793 | 108 084 994 | ||
| CURRENT ASSETS | ||||
| Inventories | 10 | 70 720 221 | 82 163 203 | |
| Accounts Receivable | 11 | 58 302 788 | 56 830 687 | |
| Other Credits | 12 | 3 242 065 | 3 146 581 | |
| Public Entities | 20 | 3 616 000 | 1 254 043 | |
| Other Current Assets | 13 | 3 473 870 | 3 074 581 | |
| Cash and cash equivalents | 4 | 8 310 031 | 11 364 954 | |
| Total current assets | 147 664 975 | 157 834 049 | ||
| Total assets | 267 341 768 | 265 919 043 | ||
| 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 | 286 407 | 382 767 | ||
| Other Reserve | 75 374 506 | 74 490 374 | ||
| Net Income | 1 962 558 | 6 134 247 | ||
| 15 | 124 622 320 | 128 006 237 | ||
| Non-controlled Interests | 16 | 1 676 790 | 1 647 295 | |
| Total equity | 126 299 110 | 129 653 532 | ||
| LIABILITIES: | ||||
| NON-CURRENT LIABILITIES | ||||
| Loans | 17 | 39 022 621 | 27 011 863 | |
| Pension Fund liabilities | 22 | 5 700 000 | 5 700 000 | |
| Provisions | 23 | 341 263 | 303 252 | |
| Deferred tax liabilities | 14 | 1 723 613 | 1 723 613 | |
| Total non-current liabilities | 46 787 497 | 34 738 728 | ||
| CURRENT LIABILITIES | ||||
| Loans | 17 | 28 979 742 | 36 801 453 | |
| Accounts Payable | 18 | 30 355 943 | 36 237 691 | |
| Other Creditors | 19 | 1 351 089 | 1 265 885 | |
| Public Entities | 20 | 12 059 192 | 9 663 087 | |
| Other Current Liabilities | 21 | 21 445 417 | 17 464 135 | |
| Derivative Financial Instruments | 24 | 63 778 | 94 532 | |
| Total current liabilities | 94 255 161 | 101 526 783 | ||
| Total liabilities | 141 042 658 | 136 265 511 | ||
| Total liabilities and shareholder' equity | 267 341 768 | 265 919 043 |
The notes to the financial statements integrates this statement for the period ending at 30 June 2016.
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 MATTHEW PETER HARRISON NOBUAKI FUJII RUI MANUEL MACHADO DE NORONHA MENDES
| Notes | 30/06/2016 | 01-04 a 30-06-2016 0 (Non Audit) |
30/06/2015 | 01-04 a 30-06-2015 (Non Audit) |
|
|---|---|---|---|---|---|
| Operating Income: | |||||
| Sales Service Rendered |
26 26 |
166 250 797 10 065 659 |
84 220 424 5 166 617 |
139 374 119 9 697 104 |
70 240 197 4 841 190 |
| Other Operating Income | 29 | 19 920 201 | 10 388 569 | 20 321 463 | 11 221 631 |
| Variation of Products | 10 | (174 834) | (1 120 325) | 102 121 | (1 979 281) |
| 196 061 823 | 98 655 285 | 169 494 807 | 84 323 737 | ||
| Operating expenses: | |||||
| Cost of sales | 10 | (145 670 389) | (73 537 291) | (121 974 515) | (59 543 953) |
| External Supplies and Services | 27 | (18 189 740) | (9 604 354) | (17 225 619) | (9 431 960) |
| Payroll Expenses | 28 | (20 043 767) | (10 013 165) | (19 592 549) | (9 922 958) |
| Depreciations and Amortizations | 5, 6 and 8 | (7 367 586) | (3 916 122) | (6 305 778) | (3 444 357) |
| Provisions and Impairment loss | 23 | (350 848) | (87 528) | (28 388) | (41 999) |
| Other Operating expenses | 29 | (1 497 247) | (409 368) | (1 558 018) | (909 654) |
| (193 119 577) | (97 567 828) | (166 684 867) | (83 294 881) | ||
| Operational Income | 2 942 246 | 1 087 457 | 2 809 940 | 1 028 856 | |
| Expense and financial losses | 30 | (1 085 476) | (601 030) | (1 021 661) | (481 075) |
| Income and financial gains | 30 | 75 388 | 32 182 | 60 329 | 33 498 |
| Profit before taxation from continuing operations | 1 932 158 | 518 609 | 1 848 608 | 581 279 | |
| Income tax for the year | 25 | 59 949 | 491 855 | (764 138) | (454 478) |
| 1 992 107 | 1 010 464 | 1 084 470 | 126 801 | ||
| Net profit for the period | 1 992 107 | 1 010 464 | 1 084 470 | 126 801 | |
| Net profit for the period from continuing operations attributable to: | |||||
| Equity holders of the parent | 1 962 558 | 988 661 | 1 059 322 | 109 907 | |
| Minority interest | 29 549 | 21 803 | 25 148 | 16 894 | |
| 1 992 107 | 1 010 464 | 1 084 470 | 126 801 | ||
| Net profit for the period from discontinued operations attributable to: | |||||
| Equity holders of the parent | - | - | - | - | |
| Minority interest | - - |
- - |
- - |
- - |
|
| Net profit for the period attributable to: Equity holders of the parent |
1 962 558 | 988 661 | 1 059 322 | 109 907 | |
| Non-controlled interests | 29 549 | 21 803 | 25 148 | 16 894 | |
| 1 992 107 | 1 010 464 | 1 084 470 | 126 801 | ||
| Earnings per share: | |||||
| from continuing operations | 36 | 0,057 | 0,029 | 0,031 | 0,004 |
| from discontinued operations Basic |
- 0,057 |
- 0,029 |
- 0,031 |
- 0,004 |
|
| from continuing operations | 36 | 0,057 | 0,029 | 0,031 | 0,004 |
| from discontinued operations Diluted |
- 0,057 |
- 0,029 |
- 0,031 |
- 0,004 |
The notes to the financial statements integrates this statement for the period ending at 30 June 2016.
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 MATTHEW PETER HARRISON NOBUAKI FUJII RUI MANUEL MACHADO DE NORONHA MENDES
| Equ ity a ttrib |
ble he uta to t ent par |
co mp any |
|||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sha re ital cap |
Leg al Res erv es |
Rea val ion uat Res erv es |
Tra nsla tion res erv es |
Fai lue r va res erv es |
Oth er Res erv e |
Tot al res erv es |
Net fit pro |
Sub l tota |
Non lled ntro -co Inte ts res |
Tot al |
|
| Bal at 3 1 o f D mb er 2 014 anc es ece |
35 000 00 0 |
7 4 98 903 |
6 1 95 184 |
(1 6 95 238 ) |
38 951 |
76 591 90 9 |
88 629 70 9 |
3 9 73 763 |
127 60 3 4 72 |
1 6 30 768 |
129 23 4 2 40 |
| Cha s in the riod nge pe : App lica tion of the Co lida ted Ne t In e 2 014 nso com Ava ilab le f ale Inv fair lue cha est nts or s me va nge s |
- - |
- - |
- - |
- - |
- 215 41 4 |
3 9 73 763 - |
3 9 73 763 215 41 4 |
(3 9 ) 73 763 - |
- 215 41 4 |
- - |
- 215 41 4 |
| Oth ers |
- - |
- - |
- - |
- - |
- 215 41 4 |
- 3 9 73 763 |
- 4 1 89 177 |
- (3 9 ) 73 763 |
- 215 41 4 |
1 1 |
1 215 41 5 |
| Con fit f sol idat ed net or t he iod pro per Con sol idat ed hen sive inc com pre om e |
- - |
- - |
- - |
- - |
- 215 41 4 |
- - |
- 215 41 4 |
1 0 59 322 1 0 59 322 |
1 0 59 322 1 2 74 736 |
25 148 25 148 |
1 0 84 470 1 2 99 884 |
| Tra ctio ith ity hol der nsa ns w equ s Dis trib d d ivid end ute s |
- | - | - | - | - | (4 5 ) 50 000 |
(4 5 ) 50 000 |
- | (4 5 ) 50 000 |
- | (4 5 ) 50 000 |
| Bal at 3 0 o f Ju 201 5 anc es ne |
35 000 00 0 |
7 4 98 903 |
6 1 95 184 |
(1 6 95 238 ) |
254 36 5 |
76 015 67 2 |
88 268 88 6 |
1 0 59 322 |
124 32 8 2 08 |
1 6 55 917 |
125 98 4 1 25 |
| f D Bal at 3 1 o mb er 2 015 anc es ece |
35 000 00 0 |
7 4 98 903 |
6 1 95 184 |
(1 6 ) 95 238 |
382 76 7 |
74 490 37 4 |
86 871 99 0 |
6 1 34 247 |
128 00 6 2 37 |
1 6 47 295 |
129 65 3 5 32 |
| Cha s in the riod nge pe : App lica tion of the Co lida ted Ne t In e 2 015 nso com Ava ilab le f ale Inv fair lue cha est nts or s me va nge s Oth |
- - - |
- - |
- - |
- - |
- (96 36 0) |
6 1 34 247 - |
6 1 34 247 (96 36 0) |
(6 1 34 247 ) - |
- (96 36 0) |
- - |
- (96 36 0) |
| ers | - | - - |
- - |
- - |
- (96 36 0) |
(11 5) 6 1 34 132 |
(11 5) 6 0 37 772 |
- (6 1 34 247 ) |
(11 5) (96 47 5) |
- - |
(11 5) (96 47 5) |
| Con sol idat ed fit f he iod net or t pro per Tot al c hen sive inc e fo r th om pre om e y ear |
- - |
- - |
- - |
- - |
- (96 36 0) |
- - |
- (96 36 0) |
1 9 62 558 1 9 62 558 |
1 9 62 558 1 8 66 198 |
29 549 29 549 |
1 9 92 107 1 8 95 747 |
| Tra ctio ith ity hol der nsa ns w equ s Acq uisi tion of ntro lled int st non co ere Dis trib d d ivid end ute s |
- - |
- - |
- - |
- - |
- - |
- (5 2 50 000 ) |
- (5 2 50 000 ) |
- - |
- (5 2 50 000 ) |
(54 ) - |
(54 ) (5 2 50 000 ) |
| Bal at 3 0 o f Ju 201 6 anc es ne |
35 000 00 0 |
7 4 98 903 |
6 1 95 184 |
(1 6 95 238 ) |
286 40 7 |
75 374 50 6 |
87 659 76 2 |
1 9 62 558 |
124 62 2 3 20 |
1 6 76 790 |
126 29 9 1 10 |
The notes to the financial statements integrates this statement for the period ending at 30 June 2016.
CHARTERED ACCOUNTANT BOARD OF DIRECTORSALEXANDRA MARIA PACHECO GAMA JUNQUEIRA
JOSE REIS DA SILVA RAMOS –President MARIA ANGELINA MARTINS CAETANO RAMOSSALVADOR ACÁCIO MARTINS CAETANOMIGUEL PEDRO CAETANO RAMOSMATTHEW PETER HARRISONNOBUAKI FUJIIRUI MANUEL MACHADO DE NORONHA MENDES
(Amounts expressed in Euros)
| IAS/IFRS 30/06/2016 |
IAS/IFRS 30/06/2015 |
|
|---|---|---|
| Consolidated net profit for the period, including minority interest | 1 992 107 | 1 084 470 |
| Components of other consolidated comprehensive income, net of tax, that could be recycled by profit and loss: |
||
| Available for sale Financial Investments fair value changes | (96 360) | 215 414 |
| Consolidated comprehensive income Attributable to: |
1 895 747 | 1 299 884 |
| Equity holders of the parent company Non-controlled interests |
1 866 198 29 549 |
1 274 736 25 148 |
The notes to the financial statements integrates this statement for the period ending at 30 June 2016.
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 MATTHEW PETER HARRISON NOBUAKI FUJII RUI MANUEL MACHADO DE NORONHA MENDES
| (Euros) | |||||
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | jun/16 | jun/15 | |||
| Collections from Customers Payments to Suppliers |
174 525 149 (157 181 045) |
154 504 159 (138 103 169) |
|||
| Payments to Employees | (14 358 360) | (14 140 904) | |||
| Operating Flow | 2 985 744 | 2 260 086 | |||
| Payments of Income Tax | 683 408 | (456 268) | |||
| Other Collections/Payments Related to Operating Activities | 12 165 218 | 11 442 906 | |||
| Cash Flow from Operating Activities | 15 834 370 | 13 246 724 | |||
| INVESTING ACTIVITIES | |||||
| Collections from: | |||||
| Tangible Fixed Assets | 1 502 275 | 1 278 352 | |||
| Interest and Other income | 110 190 | 70 626 | |||
| Dividends | - | 1 612 465 | - | 1 348 978 | |
| Payments to: | |||||
| Investments | (11) | (6 407) | |||
| Tangible Fixed Assets | (13 255 166) | (9 624 632) | |||
| Intangible Assets | (43 680) (13 298 857) | (192 200) | (9 823 239) | ||
| Cash Flow from Investment Activities | (11 686 392) | (8 474 261) | |||
| FINANCING ACTIVITIES | |||||
| Collections from: | |||||
| Loans | 828 244 | 828 244 | - | ||
| Payments to: | |||||
| Loans | - | (2 893 731) | |||
| Lease Down Payments | (1 653 145) | (1 134 784) | |||
| Interest and Other costs | (1 128 348) | (1 028 266) | |||
| Dividends | (5 249 652) | (8 031 145) | (4 553 790) | (9 610 571) | |
| Cash Flow from Financing Activities | (7 202 901) | (9 610 571) | |||
| CASH | |||||
| Cash and Cash Equivalents at Beginning of Period (Note 15) | 11 364 954 | 12 530 999 | |||
| Changes in perimeter (Note 4) Cash and Cash Equivalents at End of Period (Note 15) |
- 8 310 031 |
7 692 891 | |||
| Net Flow in Cash Equivalents | (3 054 923) | (4 838 108) | |||
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 MATTHEW PETER HARRISON NOBUAKI FUJII RUI MANUEL MACHADO DE NORONHA MENDES
Toyota Caetano Portugal, S.A. ("Toyota Caetano" or "Company") was incorporated in 1946, has its headquarters in Vila Nova de Gaia, and is the Parent Company of a Group of companies ("Toyota Caetano Group" or "Group"), which mainly develop economic activities included in the automotive sector, namely the import, assembly and commercialization of vehicles, bus and coach industry, sale and rental of industrial equipment forklifts, sale of vehicles parts, as well as the corresponding technical assistance.
Toyota Caetano 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, 2016, the companies included in Toyota Caetano Group, their headquarters and the abbreviations used, 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 2.3.
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, 2015.
Comparative information regarding December 31, 2015, 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, 2016, were adopted by the first time in this period:
a) Standards and interpretations that became effective as of 1 January 2016:
(i) Standards:
The accompanying financial statements were prepared in accordance with the accounting policies disclosed in the notes to the consolidated financial statements as of June 30, 2016.
The Group's activity is exposed to a variety of financial risks, such as market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk. These risks arise from the unpredictability of financial markets that affect the capacity of projected cash flows and profits subject to a perspective of long term ongoing. Management seeks to minimise potential adverse effects that derive from that uncertainty in its financial performance.
The financial risks management is controlled by Toyota Caetano financial department, according to the policies established by the Group Board of Directors. The Board of Directors has established the main principles of global risk management as well as specific policies for some areas, as interest rate risk and credit risk. As mentioned above, these principles and policies are properly described in the notes to the consolidated financial statements as of December 31, 2015.
In this context, we presented below some risk indicators as of June 30, 2016, considered particularly relevant:
(i) Foreign currency risk
The Group operates internationally and has a subsidiary operating in Cape Verde. The group selects a functional currency for each subsidiary (Cape Verde Escudo, for the subsidiary Caetano Auto CV, S.A.), corresponding to the currency of the economical 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, 2016 and December 31, 2015 and June 30, 2015, this situation is not applicable to any of the Group Subsidiaries).
Foreign currency risk related to the foreign subsidiaries financial statements translation, also named translation risk, presents the impact on net equity of the Holding Company, due to the translation of foreign subsidiaries financial statements.
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 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, 2016 and December 31, 2015 and June 30, 2015 can be summarized as follows:
| Assets | Liabilities | |||||
|---|---|---|---|---|---|---|
| Jun-16 | Dec-15 | Jun-15 | Jun-16 | Dec-15 | Jun-15 | |
| Cabo Verde Escudo (CVE) | 9.026.912 | 7.636.574 | 7.726.302 | 3.051.466 | 1.818.789 | 1.890.097 |
| Great Britain pounds (GBP) | - | 1.644 | 1.644 | 989 | 989 | 989 |
| Japanese yen (JPY) | - | - | - | 620.712 | 266.553 | 54.270 |
| US Dollar (USD) | - | - | - | - | - | 293 |
The sensitivity of the Group to foreign exchange rate changes can be summarized as follows (increases/decreases):
| Jun-16 | Dec-15 | ||||
|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | |
| Great Britain pounds (GBP) | 5% | (49) | - | 33 | - |
| Japanese yen (JPY) | 5% | (31.036) | - | (13.328) | - |
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 2016 and 2015, the Group has been exposed to the risk of variation of 'available for sale assets' prices. At June 30, 2016 and December 31, 2015 and June 30, 2015, the referred caption is composed only by shares of the closed property investment fund Cimóvel – Fundo de Investimento Imobiliário Fechado (Real Estate Investment Fund).
The Group's sensitivity to price variations in investments available for sale can be summarized as follows (increases/decreases):
| Jun-16 | Dec-15 | Jun-15 | |||||
|---|---|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | Net Income | Equity | |
| CIMOVEL FUND CIMOVEL FUND |
10% -10% |
- - |
330.035 (330.035) |
- - |
339.671 (339.671) |
- - |
326.831 (326.831) |
Toyota Caetano debt is indexed to variable interest rates, exposing the total cost of debt to a high risk of volatility. The impact of this volatility on the Group's results and shareholders´ equity mitigated due to the effect of the following factors: (i) possible correlation between the market interest rate levels and economic growth, having a positive effect on the other lines of the Group's consolidated results (particularly operational), thus partially offsetting the increased financial costs ("natural hedge") and (ii) the availability of consolidated liquidity or cash, also remunerated at variable rates.
Toyota Caetano Board of Directors approves the terms and conditions of the funding, analyzing the debt structure, the inherent risks and the different options available in the market, particularly considering the type of interest rates (fixed / variable) and, permanently monitoring conditions and alternatives existing in the market, and decides upon the contracting of occasional interest rate hedging derivative financial instruments.
The sensitivity analyses presented below was based on exposure to changes in interest rates for financial instruments at the statement of financial position date. For floating rate liabilities, the analysis is prepared assuming the following:
The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some assumptions may be correlated.
Group's sensitivity to changes in interest rates is summarized as follows (increases/decreases):
| Jun-16 | Dec-15 | Jun-15 | |||||
|---|---|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | Net Income | Equity | |
| Loans- Mutual Contract | 1 p.p. | 51.316 | - | 60.256 | - | 69.737 | - |
| Guaranteed account | 1 p.p. | - | - | 100.000 | - | 90.000 | - |
| Bank Credits | 1 p.p. | 1.645 | - | 211 | - | 9.770 | - |
| Commercial Paper | 1 p.p. | 135.000 | - | 217.000 | - | 127.000 | - |
| Long-term Bank Loan | 1 p.p. | 190.000 | - | 90.000 | - | 90.000 | - |
| Confirming | 1 p.p. | 99.493 | - | - | - | - | - |
| Total | 477.454 | - | 467.467 | - | 386.507 | - | |
| Loans- Mutual Contract | (1 p.p.) | (51.316) | - | (60.256) | - | (69.737) | - |
| Guaranteed account | (1 p.p.) | - | - | (100.000) | - | (90.000) | - |
| Bank Credits | (1 p.p.) | (1.645) | - | (211) | - | (9.770) | - |
| Commercial Paper | (1 p.p.) | (135.000) | - | (217.000) | - | (127.000) | - |
| Long-term Bank Loan | (1 p.p.) | (190.000) | - | (90.000) | - | (90.000) | - |
| Confirming | (1 p.p.) | (99.493) | - | - | - | - | - |
| Total | (477.454) | - | (467.467) | - | (386.507) | - | |
The above analysis does not include the consideration of the hedging (swap) financial instrument agreed by the Group to face the interest rates variation.
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 sufficient funds to cover current payments on the respective maturity dates, as well as any unexpected requests for funds;
(ii) Safety, which is the minimisation of the probability of default in the repayment of any application in funds; and
(iii) Financial Efficiency, which is ensuring that the Companies maximise the value / minimize the opportunity cost of holding excess liquidity in the short-term.
All excess liquidity is applied in short-term debt amortization, according to economic and financial reasonableness criteria.
As of 30 June, 2016 and 31 December, 2015, the Group presents a net debt of 59.692.332 Euros and 52.448.362 Euros, respectively, divided between current and non current loans (Note 17) and cash and cash equivalents (Note 4), agreed with the different financial institutions.
v) Capital Risk
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-16 | Dec-15 | Jun-15 | |
|---|---|---|---|
| Debt | 68.002.363 | 63.813.316 | 54.761.333 |
| Cash and Cash Equivalents | (8.310.031) | (11.364.954) | (7.692.891) |
| Net Debt | 59.692.332 | 52.448.362 | 47.068.442 |
| Equity | 126.299.110 | 129.653.532 | 125.984.125 |
| Leverage Ratio | 32,09% | 28,80% | 27,20% |
The gearing remains between acceptable levels, as established by management.
vi) Credit risk
Credit risk refers to the risk that the counterpart will default on its contractual obligations resulting in financial loss to the Group.
The Group's exposure to the credit risk is mainly associated to the receivable accounts of its ordinary activities. Before accepting new clients, the company obtains information from credit rating agencies and makes internal analysis to the collection risk and contingent processes through specific credit and legal departments, attributing credit limits by client, based on the information received.
Risk management seeks to guarantee an effective collection of its credits in the terms negotiated without impact on the financial Group's health. This risk is regularly monitored, being Management's objective (i) to impose credit limits to customers, considering the number of days of sales outstanding, individually or on groups of customers, (ii) control credit levels and (iii) perform regular impairment analysis. The Group obtains credit guarantees whenever the customers' financial situation demands.
Regarding independent dealership customers, the Group requires guarantees "on first demand", that, as disclosed in the notes to the consolidated financial statements of December 31, 2015, 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, 2016 and 2015 are stated in Note 23.
At June 30, 2016, 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.
Exchange rates used in the conversion of foreign affiliated companies, as of June 30, 2016 and December 31, 2015 were as follows:
| 30-06-2016 | |||||
|---|---|---|---|---|---|
| Currency | Final Exchange Rate for Jun-16 |
Average Exchange Rate for Jun-16 |
Exchange Rate at the Date of Incorporation |
Final Exchange rate for 2015 |
|
| Caetano Auto CV, S.A. | CVE | 0,009069 | 0,009069 | 0,009069 | 0,009069 |
| Captions | Balance Sheet except Shareholders |
Income Statement | Share Capital | Retained Earnings |
| Currency | Final Exchange Rate for Dec-15 |
Average Exchange Rate for Dec-15 |
Exchange Rate at the Date of Incorporation |
Final Exchange rate for 2014 |
|
|---|---|---|---|---|---|
| Caetano Auto CV, S.A. | CVE | 0,009069 | 0,009069 | 0,009069 | 0,009069 |
| Captions | Balance Sheet except Shareholders |
Income Statement | Share Capital | Retained Earnings |
The affiliated companies included in consolidation by the full consolidation method and share of capital held as of June 30, 2016 and December 31, 2015, are as follows:
| Companies | Effective | ||
|---|---|---|---|
| Percentage Held | |||
| Jun-16 | Dec-15 | ||
| Toyota Caetano Portugal, S.A. | Parent Company | ||
| Saltano - Investimentos e Gestão (S.G.P.S.), S.A. | 99,98% | 99,98% | |
| Caetano Auto CV, S.A. | 81,24% | 81,24% | |
| Caetano Renting, S.A. | 99,98% | 99,98% | |
| Caetano - Auto, S.A. | 98,40% | 98,40% |
These subsidiaries were included in the consolidated financial statements using the full consolidation method, as established in IFRS 10.
(Amounts in Euros)
As of June 30, 2016, December 31, 2015 and June 30, 2015 cash and cash equivalents detail was the following:
| Jun-16 | Dec-15 | Jun-15 | |
|---|---|---|---|
| Cash | 124.827 | 118.992 | 354.689 |
| Bank Deposits | 8.185.204 | 11.245.962 | 7.337.067 |
| Cash equivalents | - | - | 1.135 |
| 8.310.031 | 11.364.954 | 7.692.891 | |
The Company and its affiliates have available credit facilities as of June 30, 2016 amounting to approximately 71 Million Euros (of which have been utilized 48 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.
During the six month period ended as of June 30, 2016 and 2015, the movement in tangible fixed assets, as well as in the respective accumulated depreciation and accumulated impairment losses, was as follows:
| 30-06-2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Land | Buildings and Other Constructions |
Machinery and Equipment |
Transport Equipment |
Administrative Equipment |
Other Fixed Assets |
Tangible assets in Progress |
Total | |
| Gross Assets: | ||||||||
| Opening Balances | 16.842.823 | 93.538.551 | 60.117.299 | 55.526.355 | 7.880.877 | 4.318.806 | 397.459 | 238.622.170 |
| Additions | - | 286.087 | 160.203 | 23.027.076 | 22.892 | 16.557 | 1.748 | 23.514.563 |
| Disposals and Write-offs | - | (53.234) | (153.437) | (8.172.667) | (116.277) | (28.524) | - | (8.524.139) |
| Ending Balances | 16.842.823 | 93.771.404 | 60.124.065 | 70.380.764 | 7.787.492 | 4.306.839 | 399.207 | 253.612.594 |
| Accumulated Depreciation and Impairment losses: |
||||||||
| Opening Balances | - | 60.281.003 | 54.610.829 | 28.543.554 | 7.514.630 | 4.082.927 | - | 155.032.943 |
| Depreciations | - | 1.220.287 | 600.011 | 4.818.681 | 53.194 | 37.286 | - | 6.729.459 |
| Disposals and Write-offs | - | (45.882) | (148.632) | (3.625.703) | (109.415) | (27.625) | - | (3.957.257) |
| Transfer | - | 4.053 | - | - | - | - | - | 4.053 |
| Ending Balances | - | 61.459.461 | 55.062.208 | 29.736.532 | 7.458.409 | 4.092.588 | - | 157.809.198 |
| Net Tangible Assets | 16.842.823 | 32.311.943 | 5.061.857 | 40.644.232 | 329.083 | 214.251 | 399.207 | 95.803.396 |
(Amounts in Euros)
| 30-06-2015 | |||||||
|---|---|---|---|---|---|---|---|
| Land | Buildings and Other Constructions |
Machinery and Equipment |
Transport Equipment |
Administrative Equipment |
Other Fixed Assets |
Tangible assets in Progress |
Total |
| 16.746.095 | 93.363.990 | 58.647.320 | 45.865.853 | 7.649.868 | 4.266.949 | 69.000 | 226.609.075 |
| 37.978 | 94.417 | 1.664.406 | 20.804.887 | 74.558 | 22.265 | 1.083.967 | 23.782.478 |
| - | (1.491.839) | - | (7.378.767) | - | - | - | (8.870.606) |
| - | (8.774) | - | - | - | - | - | (8.774) |
| 16.784.073 | 91.957.794 | 60.311.726 | 59.291.973 | 7.724.426 | 4.289.214 | 1.152.967 | 241.512.173 |
| - | 59.461.724 | 54.104.202 | 26.833.929 | 7.396.976 | 4.006.782 | - | 151.803.613 |
| - | 1.189.541 | 621.303 | 3.936.437 | 55.100 | 42.195 | - | 5.844.576 |
| - | (1.491.839) | - | (2.843.102) | - | - | - | (4.334.941) |
| - | 3.043 | (77) | - | 125 | - | - | 3.091 |
| - | 59.162.469 | 54.725.428 | 27.927.264 | 7.452.201 | 4.048.977 | - | 153.316.339 |
| 16.784.073 | 32.795.325 | 5.586.298 | 31.364.709 | 272.225 | 240.237 | 1.152.967 | 88.195.834 |
The movements registered in item "Transport Equipment" mainly refer to vehicles and forklifts that are being used by the Group as well as being rented, under operating lease, to clients.
At June 30, 2015, the increases recorded in the period in buildings and basic equipment and tools, are essentially the investment made in Ovar Plant, for the production of the Land Cruiser 70 Series model, LC70, for the South African market. The caption tangible assets in progress is associated at the same project.
At June 30, 2016, the increases in buildings includes maintenance works in Caetano Auto buildings.
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, 2016 and December 31, 2015, the assets acquired through financial leases are presented as follows:
| Gross Value | Net Value | ||
|---|---|---|---|
| Fixed Tangible Assets | 28.133.268 | 7.252.060 | 20.881.208 |
| Dec-15 | |||
|---|---|---|---|
| Gross Value | Accumulated Depreciations |
Net Value | |
| Fixed Tangible Assets | 23.286.089 | 5.335.258 | 17.950.831 |
(Amounts in Euros)
As of June 30, 2016, December 31, 2015 and June 30, 2015, 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" are recorded in the caption "Other Operating Income" and amounted to 1.841.472 Euros as the six month period ended as of June 30, 2016 (1.351.497 Euros as of June 30, 2015) (note 29).
Additionally, in according with appraisals reported to December 31, 2015, the fair value of those investment properties amounts to, approximately, 54 million Euros.
Management believes that a possible change (within a scenario of normal) in the main assumptions used in calculating the fair value will not result in impairment losses, beyond from losses recognized in previous years.
The real estate assets recorded in the caption "Investment properties" as of June 30, 2016 and December 31, 2015 is made up as follows:
| Jun-16 | Dec-15 | |||||
|---|---|---|---|---|---|---|
| Location | Appraisal | Net accounting value |
Fair Value | Appraisal | Net accounting value |
Fair Value |
| Vila Nova de Gaia - Av. da República | internal | 85.633 | 1.192.400 | internal | 87.064 | 1.192.400 |
| Braga - Av. da Liberdade | Internal | 503 | 1.355.000 | Internal | 604 | 1.355.000 |
| Porto - Rua do Campo Alegre | Internal | 922.363 | 2.877.000 | Internal | 952.996 | 2.877.000 |
| Viseu - Teivas | external | 871.438 | 896.000 | external | 896.000 | 896.000 |
| Óbidos - Casal do Lameiro | Internal | 59.135 | 1.400.000 | Internal | 59.558 | 1.400.000 |
| Castro Daire - Av. João Rodrigues Cabrilho | Internal | 27.159 | 58.000 | Internal | 27.709 | 58.000 |
| Caldas da Rainha - Rua Dr. Miguel Bombarda | Internal | 17.531 | 85.000 | Internal | 17.531 | 85.000 |
| Viseu - Quinta do Cano | internal/external | 1.750.092 | 2.461.740 | internal/external | 1.758.024 | 2.461.740 |
| Amadora - Rua Elias Garcia | Internal | 186.205 | 149.000 | Internal | 187.935 | 149.000 |
| Portalegre - Zona Industrial | internal | 191.528 | 173.000 | internal | 194.099 | 173.000 |
| Portimão - Cabeço do Mocho | internal | 424.781 | 410.000 | internal | 424.781 | 410.000 |
| Vila Real de Santo António - Rua de Angola | internal | 25.345 | 83.000 | internal | 26.063 | 83.000 |
| Rio Maior | internal | 107.000 | 107.000 | internal | 107.000 | 107.000 |
| S João de Lourosa - Viseu | internal | 461.476 | 487.030 | internal | 463.268 | 487.030 |
| Vila Nova de Gaia - Av. Vasco da Gama (edifícios A e B) | internal | 3.345.614 | 11.448.000 | internal | 3.454.289 | 11.448.000 |
| Vila Nova de Gaia - Av. Vasco da Gama (edifícios G) | internal | 993.755 | 6.003.000 | internal | 1.044.637 | 6.003.000 |
| Carregado - Quinta da Boa Água / Quinta do Peixoto | internal | 5.111.211 | 21.518.000 | internal | 5.135.484 | 21.518.000 |
| Lisboa - Av. Infante Santo | internal | 1.185.285 | 1.247.000 | internal | 1.199.980 | 1.247.000 |
| Vila Nova de Gaia - Rua das Pereira | internal | 267.136 | 788.000 | internal | 273.052 | 788.000 |
| Leiria - Azóia | internal | 355.125 | 797.000 | internal | 355.125 | 797.000 |
| 16.388.315 | 53.535.170 | 16.665.199 | 53.535.170 |
The investment properties fair value disclosed in December 31, 2015 was determined by property valuation by independents appraisers (Market Method, Cost Method, Return Method and Use Method models).
As of June 30, 2016 the values of the evaluation will be published at December 31, 2015 on the grounds that, given the generalized inexistence of major works in 2016, the inexistence of relevant claims in 2016 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 and 2015.
(Amounts in Euros)
The movement in the caption "Investment properties" as of June 30, 2016 and 2015 was as follows:
| 30-06-2016 | ||||||
|---|---|---|---|---|---|---|
| Gross Assets | Land | Buildings | Total | |||
| Opening Balances | 9.916.943 | 36.133.435 | 46.050.378 | |||
| Ending Balances | 9.916.943 | 36.133.435 | 46.050.378 | |||
| Accumulated Depreciation and Impairment Losses: |
Land | Buildings | Total |
|---|---|---|---|
| Opening Balances | - | 29.385.179 | 29.385.179 |
| Additions | - | 280.937 | 280.937 |
| Transfer | - | (4.053) | (4.053) |
| Ending Balances | - | 29.662.063 | 29.662.063 |
| 30-06-2015 | |||
|---|---|---|---|
| Gross Assets | Land | Buildings | Total |
| Opening Balances | 9.985.217 | 36.926.900 | 46.912.117 |
| Additions | - | 45.360 | 45.360 |
| Disposals | - | (669.169) | (669.169) |
| Transfer | - | (62.012) | (62.012) |
| Ending Balances | 9.985.217 | 36.241.079 | 46.226.296 |
| Accumulated Depreciation and | |||
|---|---|---|---|
| Impairment Losses: | Land | Buildings | Total |
| Opening Balances | - | 29.566.796 | 29.566.796 |
| Additions | - | 280.715 | 280.715 |
| Disposals | - | (669.169) | (669.169) |
| Transfer | - | (62.014) | (62.014) |
| Ending Balances | - | 29.116.328 | 29.116.328 |
At June 30, 2016 and 2015 there were not any movements in item "Goodwill".
The item "Goodwill" is totally related to the amount calculated in the acquisition of the affiliate Movicargo whose business was transferred to the parent Toyota Caetano Portugal, S.A.
The Goodwill is not depreciated. Impairment tests are made annually to the Goodwill. At June 30, 2016 there are no signs of impairment, so it was not necessary to carry out impairment tests.
During the six month period ended as of June 30, 2016 and 2015, the movement in intangible assets, as well as in the respective accumulated depreciation and accumulated impairment losses, was as follows:
| 30-06-2016 | ||||||
|---|---|---|---|---|---|---|
| Research and Development Expenses |
Industrial Property |
Goodwill | Computer Programs |
Intangible assets in progress |
Total | |
| Gross Assets: | ||||||
| Opening Balances | 1.394.907 | 284.179 | 81.485 | 2.003.979 | 60.760 | 3.825.310 |
| Additions | - | - | - | 142.984 | 43.680 | 186.664 |
| Ending Balances | 1.394.907 | 284.179 | 81.485 | 2.146.963 | 104.440 | 4.011.974 |
| Accumulated Depreciation and Impairment losses: |
||||||
| Opening Balances | 464.969 | 163.243 | 81.485 | 1.655.087 | - | 2.364.784 |
| Depreciations | 232.485 | 9.166 | - | 115.539 | - | 357.190 |
| Ending Balances | 697.454 | 172.409 | 81.485 | 1.770.626 | - | 2.721.974 |
| Net Intangible Assets | 697.453 | 111.770 | - | 376.337 | 104.440 | 1.290.000 |
| 30-06-2015 | ||||||
|---|---|---|---|---|---|---|
| Research and Development Expenses |
Industrial Property |
Goodwill | Computer Programs |
Intangible assets in progress |
Total | |
| Gross Assets: | ||||||
| Opening Balances | - | 259.977 | 81.485 | 1.985.411 | 24.202 | 2.351.075 |
| Additions | 471.104 | - | - | 18.567 | - | 489.671 |
| Ending Balances | 471.104 | 259.977 | 81.485 | 2.003.978 | - | 2.840.746 |
| Accumulated Depreciation and Impairment losses: |
||||||
| Opening Balances | - | 144.391 | 81.485 | 1.470.283 | - | 1.696.159 |
| Depreciations | 78.517 | 9.568 | - | 92.402 | - | 180.487 |
| Ending Balances | 78.517 | 153.959 | 81.485 | 1.562.685 | - | 1.876.646 |
| Net Intangible Assets | 392.587 | 106.018 | - | 441.293 | 24.202 | 964.100 |
During the period ended as of June 30, 2016, and December 31, 2015 and June 30, 2015 the movements in item "Investments available for sale" were as follows:
| Non-current assets | |||
|---|---|---|---|
| Jun-16 | Dec-15 | Jun-15 | |
| Available for sale Investments | |||
| Fair value at January 1 | 3.463.450 | 3.119.634 | 3.119.634 |
| Increase/(decrease) in fair value | (96.359) | 343.816 | 215.414 |
| Fair value at the date of reference | 3.367.091 | 3.463.450 | 3.335.048 |
As of June 30, 2016, the available for sale Investments break down as follows:
Additionally, the impact in equity and impairment losses during the six month period ended as of June 30, 2016 and 2015 from recording "Investments held for sale" at fair value can be summarized as follows:
| Jun-16 | Jun-15 | |
|---|---|---|
| Increase in fair value | (96.359) | 215.414 |
| (96.359) | 215.414 |
As of June 30, 2016, December 31, 2015 and June 30, 2015, this caption breakdown is as follows:
| Jun-16 | Dec-15 | Jun-15 | |
|---|---|---|---|
| Raw and subsidiary Materials | 1.246.215 | 10.080.953 | 7.684.910 |
| Production in Process | 1.168.752 | 1.137.959 | 1.211.575 |
| Finished and semi-finished Products | 1.403.045 | 1.613.906 | 5.655.385 |
| Merchandise | 68.466.440 | 70.642.162 | 61.023.112 |
| 72.284.452 | 83.474.980 | 75.574.982 | |
| Accumulated impairment losses in inventories (Note 23) | (1.564.231) | (1.311.777) | (1.876.301) |
| 70.720.221 | 82.163.203 | 73.698.681 | |
The reduction occurring in the caption "Raw and subsidiary Materials", concerns the change version of LC70, model to be assembled in Ovar Plant.
During the six month period ended as of June 30, 2016 and 2015, cost of sales was as follows:
| Jun-16 | Jun-15 | |||||
|---|---|---|---|---|---|---|
| Merchandise | Raw and subsidiary Materials |
Total | Merchandise | Raw and subsidiary Materials |
Total | |
| Opening Balances | 70.642.162 | 10.080.953 | 80.723.115 | 61.390.733 | 3.938.945 | 65.329.678 |
| Net Purchases | 121.876.708 | 12.783.221 | 134.659.929 | 115.296.452 | 10.056.407 | 125.352.859 |
| Ending Balances | (68.466.440) | (1.246.215) | (69.712.655) | (61.023.112) | (7.684.910) | (68.708.022) |
| Total | 124.052.430 | 21.617.959 | 145.670.389 | 115.664.073 | 6.310.442 | 121.974.515 |
During the six month period ended as of June 30, 2016 and 2015, the variation in production was computed as follows:
| Finished and semi-finished products | ||
|---|---|---|
| Jun-16 | Jun-15 | |
| Ending Balances | 2.571.797 | 6.866.960 |
| Inventories adjustments | 5.234 | (203.332) |
| Opening Balances | (2.751.865) | (6.561.507) |
| Total | (174.834) | 102.121 |
(Amounts in Euros)
As of June 30, 2016, December 31, 2015 and June 30, 2015, the detail of this caption was as follows:
| CURRENT ASSEST | NON-CURRENT ASSETS | ||||||
|---|---|---|---|---|---|---|---|
| Jun-16 | Dec-15 | Jun-15 | Jun-16 | Dec-15 | Jun-15 | ||
| Customers, current accounts | 58.130.427 | 56.738.200 | 51.941.935 | 138.841 | 46.553 | 116.239 | |
| Doubtful Accounts Receivable | 9.878.019 68.008.446 |
9.803.136 66.541.336 |
10.345.503 62.287.438 |
- 138.841 |
- 46.553 |
- 116.239 |
|
| Accumulated impairment losses in accounts Receivable (Note 23) | (9.705.658) | (9.710.649) | (10.337.898) | - | - | - | |
| 58.302.788 | 56.830.687 | 51.949.540 | 138.841 | 46.553 | 116.239 |
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.
Debt maturity without recognition of losses by impairment
| 30-06-2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||||
| Accounts receivable | 32.094.485 | 5.449.312 | 1.590.213 | 13.135.202 | 52.269.212 | |||
| Personnel | 4.363 | 143.988 | 104.869 | 40.854 | 294.074 | |||
| Independent Dealers | 5.119.439 | 545.822 | 33.857 | 6.864 | 5.705.982 | |||
| Total | 37.218.287 | 6.139.122 | 1.728.939 | 13.182.920 | 58.269.268 | |||
| 31-12-2015 | ||||||
|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||
| Accounts receivable | 36.892.908 | 2.096.824 | 1.122.319 | 11.117.860 | 51.229.911 | |
| Personnel | 73 | 9.756 | 2.094 | 86.911 | 98.834 | |
| Independent Dealers | 5.228.706 | 202.707 | 17.731 | 6.864 | 5.456.008 | |
| Total | 42.121.687 | 2.309.287 | 1.142.144 | 11.211.635 | 56.784.753 | |
Debt maturity with recognition of losses by impairment
| 30-06-2016 | |||||||
|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |||
| Doubtful Accounts Receivable | 4.960 | 75 | 1.112 | 9.871.872 | 9.878.019 | ||
| Total | 4.960 | 75 | 1.112 | 9.871.872 | 9.878.019 | ||
| 31-12-2015 | |||||||
|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |||
| Doubtful Accounts Receivable | 3.972 | 3.406 | 1.281 | 9.794.477 | 9.803.136 | ||
| Total | 3.972 | 3.406 | 1.281 | 9.794.477 | 9.803.136 | ||
The amounts presented in the consolidated Statement of financial position are net of accumulated impairment losses to doubtful accounts receivable estimated by the Group, in accordance with its experience based on its evaluation of the economic environment at the statement of financial position date. Credit risk concentration is limited, because the customers' basis is wider and not relational. Thus, the Board of Directors understands that the accounting values of accounts receivable are similar to their respective fair value.
As of June 30, 2016, December 31, 2015 and June 30, 2015, the detail of this caption was as follows:
| Current Assets | ||||
|---|---|---|---|---|
| Jun-16 | Dec-15 | Jun-15 | ||
| Down Payments to Suppliers | 887.431 | 813.122 | 2.049.848 | |
| Other debtors | 2.354.634 | 2.333.459 | 1.980.294 | |
| 3.242.065 | 3.146.581 | 4.030.142 | ||
This caption includes, as of June 30, 2016, the amount of, approximately, 800.000 Euros (800.000 Euros as of December 31, 2015) to be received from Salvador Caetano Auto Africa, SGPS, S.A..
It is noted that this amount also includes an account receivable in the amount of 617.686 Euros from the related party Fundação Salvador Caetano (683.000 Euros on December 31, 2015).
(Amounts in Euros)
As of June 30, 2016, December 31, 2015 and June 30, 2015, the detail of this caption was as follows:
| Jun-16 | Dec-15 | Jun-15 | |
|---|---|---|---|
| Accrued Income | |||
| Fleet programs and Bonus suppliers | 533.903 | - | 231.036 |
| Commissions | 382.539 | 407.131 | 355.643 |
| Warranty claims | 190.441 | 163.732 | 235.607 |
| Rappel | 183.488 | 608.718 | 314.589 |
| Fee's | 73.923 | 39.794 | - |
| Assignment of staff | 28.256 | 30.807 | 30.110 |
| Insurance | 10.596 | 335.530 | 48.249 |
| Interest | - | 626 | 12.209 |
| Others | 846.727 | 586.455 | 661.619 |
| 2.249.873 | 2.172.793 | 1.889.062 | |
| Deferred Expenses | |||
| Insurance | 314.415 | 126.848 | 231.854 |
| Rentals | 143.037 | 121.827 | 22.305 |
| Interest | - | 50.144 | 4.515 |
| Pension Fund | - | 201.710 | - |
| Others | 766.545 | 401.259 | 429.050 |
| 1.223.997 | 901.788 | 687.724 | |
| Total | 3.473.870 | 3.074.581 | 2.576.786 |
(Amounts in Euros)
The detail of deferred tax assets and liabilities recorded in the accompanying consolidated financial statements as of June 30, 2016 and 2015 is as follows:
| 30-06-2016 | |||
|---|---|---|---|
| Dec-15 | Profit and Loss Impact |
Jun-16 | |
| Deferred tax assets: | |||
| Provisions not accepted for tax purpose | 287.440 | - | 287.440 |
| Tax losses | 502.622 | (109.408) | 393.214 |
| Pension Fund liabilities | 1.257.500 | - | 1.257.500 |
| Write-off of tangible assets/inventories | 164.460 | (54.561) | 109.899 |
| Derivative financial instruments valuation | 36.020 | (6.920) | 29.100 |
| 2.248.042 | (170.889) | 2.077.153 | |
| Deferred tax liabilities: | |||
| Depreciation as a result of legal and free revaluation of fixed assets | (659.109) | - | (659.109) |
| Effect of the reinvestments of the surplus in fixed assets sales | (165.772) | - | (165.772) |
| Fair value of fixed assets | (898.732) | - | (898.732) |
| (1.723.613) | - | (1.723.613) | |
| Net effect (Note 25) | (170.889) |
| 30-06-2015 | |||
|---|---|---|---|
| Dec-14 | Profit and Loss Impact |
Jun-15 | |
| Deferred tax assets: | |||
| Provisions not accepted for tax purpose | 372.370 | - | 372.370 |
| Tax losses | 1.248.074 | (164.295) | 1.083.779 |
| Pension Fund liabilities | 1.100.000 | - | 1.100.000 |
| Write-off of tangible assets/inventories | 410.521 | (160.318) | 250.203 |
| Derivative financial instruments valuation | 48.447 | (17.722) | 30.725 |
| 3.179.412 | (342.335) | 2.837.077 | |
| Deferred tax liabilities: | |||
| Depreciation as a result of legal and free revaluation of fixed assets | (703.938) | - | (703.938) |
| Effect of the reinvestments of the surplus in fixed assets sales | (190.200) | - | (190.200) |
| Tax gains according to n. º 7 Artº7 30/G 2000 Portuguese Law | (5.136) | - | (5.136) |
| Fair value of fixed assets | (898.732) | - | (898.732) |
| (1.798.006) | - | (1.798.006) | |
| Net effect (Note 25) | (342.335) |
In accordance with the applicable legislation in Portugal, tax losses can be carried forward for the following periods:
In June 30, 2016 (date of the latest tax returns delivered), the companies of the Group reported the following tax losses, for which tax deferred assets have been recognized:
| Tax Losses | Deferred tax Assets |
Expiry date |
|---|---|---|
| 1.818.924 | 381.974 | 2017 |
| 53.524 | 11.240 | 2018 |
| 1.872.448 | 393.214 | |
| Jun-16 |
From January, 2012 (inclusive), the deduction of tax losses carried forward, established in previous years or in progress (includes all reported losses identified in i), ii) and iii)) is limited to 75% of the taxable profit assessed in the relevant fiscal year and from 2014 (inclusive) is limited to 70% of taxable income in each year. This situation requires the annual evaluation of the amount of deferred tax can be recovered within the time indicated above.
As of June 30, 2016 and 2015 tax rates used to compute current and deferred tax assets and liabilities were as follows:
| Tax rates | ||||
|---|---|---|---|---|
| Jun-16 | Jun-15 | |||
| 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 2012 and 2015 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, 2016, the Company's share capital, fully subscribed and paid for, consisted of 35.000.000 bearer shares, with a nominal value of 1 Euro each.
The entities with over 20% of subscribed capital are as follows:
| - Grupo Salvador Caetano SGPS, S.A. | 60,82% |
|---|---|
| - Toyota Motor Europe NV/SA | 27,00% |
According to the General shareholders meeting deliberation, as of April 28, 2016, was paid to shareholders a dividend of 0,15 Euros per share (5.250.000 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 the investments available for sale and cannot be distributed or used to absorb losses.
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 Normas Contabilísticas e de Relato Financeiro (NCRF, Portuguese GAAP).
Movements in this caption during the period ended as of June 30, 2016, December 31, 2015 and June 30, 2015 were as follows:
| Jun-16 | Dec-15 | Jun-15 | |
|---|---|---|---|
| Opening Balances as of January 1 | 1.647.295 | 1.630.768 | 1.630.768 |
| Others | (54) | (16.015) | 1 |
| Net profit attributable to Non-controlled Interest | 29.549 | 32.542 | 25.148 |
| 1.676.790 | 1.647.295 | 1.655.917 | |
The decomposition of the mentioned value by subsidiary company is as follows:
| Subsidiary | % INC | Non Controlled Interests |
Net Income attributable to Non Controlled Interests |
|
|---|---|---|---|---|
| Saltano - Investimentos e Gestão (S.G.P.S.), S.A. | 0,02% | 4.036 | (1) | |
| Caetano Auto CV, S.A. | 18,76% | 1.130.501 | 28.129 | |
| Caetano Renting, S.A. | 0,02% | 378 | (155) | |
| Caetano - Auto, S.A. | 1,60% | 541.875 | 1.576 | |
| 1.676.790 | 29.549 | |||
The resume of financial information related to each subsidiary that is consolidated is presented below:
| Caption | Caetano Auto | Caetano Renting | Saltano | Caetano Auto CV |
|---|---|---|---|---|
| Non Current Assets | 49.713.784 | 20.867.233 | 20.739.683 | 1.476.819 |
| Current Assets | 58.295.275 | 5.111.546 | 2.051.218 | 7.550.093 |
| Total Assets | 108.009.059 | 25.978.779 | 22.790.901 | 9.026.912 |
| Non Current Liabilities | 5.932.512 | 200.014 | - | - |
| Current Liabilities | 67.503.977 | 23.613.573 | 3.580.823 | 3.051.466 |
| Equity | 34.572.570 | 2.165.192 | 19.210.078 | 5.975.446 |
| Revenues | 93.512.660 | 1.835.842 | - | 4.856.432 |
| Operating Results | 427.646 | (574.772) | (2.273) | 218.326 |
| Financial Results | (114.837) | (87.648) | - | (6.701) |
| Taxes | (118.711) | - | - | (53.964) |
| Net Income | 194.098 | (662.420) | (2.273) | 157.661 |
As of June 30, 2016, December 31, 2015 and June 30, 2015 the caption "Loans" was as follows:
| Jun-16 | Dec-15 | Jun-15 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Current | Non-Current | Total | Current | Non-Current | Total | Current | Non-Current | Total | |
| Bank Loan | 25.291.401 | 22.289.475 | 47.580.876 | 33.542.105 | 13.210.526 | 46.752.631 | 23.542.105 | 14.131.579 | 37.673.684 |
| Bank Overdrafts | 164.509 | - | 164.509 | 20.276 | - | 20.276 | 977.040 | - | 977.040 |
| Finance Leases | 3.523.832 | 16.733.146 | 20.256.978 | 3.239.072 | 13.801.337 | 17.040.409 | 2.999.335 | 13.111.273 | 16.110.608 |
| 28.979.742 | 39.022.621 | 68.002.363 | 36.801.453 | 27.011.863 | 63.813.316 | 27.518.480 | 27.242.852 | 54.761.332 | |
As of June 30, 2016 and December 31, 2015, the detail of bank loans, overdrafts, others loans and Commercial Paper Programs, as well as its conditions, were as follows:
| 30-06-2016 | ||||
|---|---|---|---|---|
| Description/Beneficiary Company | Used Amount | Limit | Beginning Date |
Date Limit |
| Non-current | ||||
| Loan – mutual contract | ||||
| Toyota Caetano Portugal | 3.289.475 | 3.289.475 | 22-06-2012 | 5 years |
| Toyota Caetano Portugal | 10.000.000 | 10.000.000 | 11-03-2016 | 5 years |
| Toyota Caetano Portugal | 9.000.000 | 9.000.000 | 15-10-2014 | 5 years |
| 22.289.475 | 22.289.475 | |||
| Current | ||||
| Bank Loan | - | 3.000.000 | ||
| Loan – mutual contract | 1.842.104 | 1.842.104 | 22-06-2012 | 5 years |
| Bank Overdrafts | 164.509 | 5.500.000 | ||
| Confirming | 9.949.297 | 10.000.000 | 24-05-2016 | |
| Commercial Paper: | ||||
| Toyota Caetano Portugal | 9.200.000 | 9.200.000 | 27-11-2012 | 5 years |
| Toyota Caetano Portugal | 4.300.000 | 4.300.000 | 26-11-2012 | 5 years |
| Toyota Caetano Portugal | - | 10.000.000 | ||
| Toyota Caetano Portugal | - | 5.000.000 | ||
| 25.455.910 | 48.842.104 | |||
| 47.745.385 | 71.131.579 | |||
| 31-12-2015 | ||||
|---|---|---|---|---|
| Description/Beneficiary Company | Used Amount | Limit | Beginning Date |
Date-Limit |
| Non-current | ||||
| Loan – mutual contract | ||||
| Toyota Caetano Portugal | 4.210.526 | 4.210.526 | 22-06-2012 | 5 years |
| Toyota Caetano Portugal | 9.000.000 | 9.000.000 | 15-10-2014 | 5 years |
| 13.210.526 | 13.210.526 | |||
| Current | ||||
| Bank Loan | 10.000.000 | 10.000.000 | ||
| Loan - mutual contract | 1.842.105 | 1.842.105 | 22-06-2012 | 5 years |
| Bank Overdrafts | 20.276 | 5.500.000 | ||
| Confirming | - | - | ||
| Commercial Paper: | ||||
| Toyota Caetano Portugal | 9.200.000 | 9.200.000 | 27-11-2012 | 5 years |
| Toyota Caetano Portugal | 5.000.000 | 5.000.000 | 26-11-2012 | 5 years |
| Toyota Caetano Portugal | 2.500.000 | 10.000.000 | 18-08-2015 | 5 years |
| Toyota Caetano Portugal | 5.000.000 | 5.000.000 | 17-07-2015 | 1 year (*) |
| 33.562.381 | 46.542.105 | |||
| 46.772.907 | 59.752.631 | |||
(*) Automatically renewable up to 4 times.
(Amounts in Euros)
Next, we present below the debt amount outstanding, for which there have been granted mortgages (note 35):
Loan - mutual contract: 5.131.579.
Commercial Paper: 13.500.000.
Interests relating to the above mentioned bank loans are indexed to Euribor interest rates, increased with a spread that varies from 1,25 to 2,50 bps.
The item "Leasings" (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:
| Short-term | Medium-and long-term | |||||||
|---|---|---|---|---|---|---|---|---|
| Contract | Leasings | 12m | 12 – 24m | 24 – 36m | 36 – 48m | > 48m | TOTAL | TOTAL |
| 2028278 | Commercial facilities | |||||||
| Capital | 96.077 | 96.800 | 97.529 | 98.263 | 168.456 | 461.048 | 557.125 | |
| Interests | 3.849 | 3.126 | 2.397 | 1.663 | 1.106 | 8.292 | 12.141 | |
| 559769 | Commercial facilities | |||||||
| Capital | 62.036 | 62.314 | 62.593 | 62.874 | 585.546 | 773.327 | 835.363 | |
| Interests | 3.608 | 3.330 | 3.051 | 2.770 | 11.488 | 20.639 | 24.247 | |
| 626064 | Commercial facilities | |||||||
| Capital | 144.494 | 163.000 | 168.798 | 174.802 | 824.129 | 1.330.729 | 1.475.223 | |
| Interests | 44.683 | 43.375 | 37.578 | 31.574 | 61.874 | 174.401 | 219.084 | |
| 2032103 | Commercial facilities | |||||||
| Capital | 18.416 | 19.358 | 20.318 | 21.389 | 101.799 | 162.864 | 181.280 | |
| Interests | 8.646 | 7.704 | 6.713 | 5.672 | 7.366 | 27.455 | 36.101 | |
| Various | Industrial Equipment | |||||||
| Capital | 3.202.809 | 3.322.652 | 3.493.161 | 3.162.569 | 4.026.796 | 14.005.178 | 17.207.987 | |
| Interests | 557.152 | 407.595 | 255.214 | 122.373 | 16.256 | 801.438 | 1.358.590 | |
| Total Capital | 3.523.832 | 3.664.124 | 3.842.399 | 3.519.897 | 5.706.726 | 16.733.146 | 20.256.978 | |
| Total Interests | 617.938 | 465.130 | 304.953 | 164.052 | 98.090 | 1.032.225 | 1.650.163 |
The maturities of existing loans at June 30, 2016 can be summarized as follows:
| 12m | 12 – 24m | 24 – 36m | 36 – 48m | > 48m | Total | |
|---|---|---|---|---|---|---|
| Loan – mutual contract | 1.842.104 | 7.289.475 | 5.000.000 | - | 10.000.000 | 24.131.579 |
| Confirming | 9.949.297 | - | - | - | - | 9.949.297 |
| Bank Overdrafts | 164.509 | - | - | - | - | 164.509 |
| Paper Commercial | 13.500.000 | - | - | - | - | 13.500.000 |
| Finance Leases | 3.523.832 | 3.664.124 | 3.842.399 | 3.519.897 | 5.706.726 | 20.256.978 |
| Total loans | 28.979.742 | 10.953.599 | 8.842.399 | 3.519.897 | 15.706.726 | 68.002.363 |
(Amounts in Euros)
As of June 30, 2016, December 31, 2015 and June 30, 2015 this caption was composed of current accounts with suppliers, which end at short term.
The Group, relating to financial risk management, has implemented policies to ensure that all liabilities are paid for within the defined payment period.
As of June 30, 2016, December 31, 2015 and June 30, 2015 the detail of other creditors was as follows:
| Current Liabilities | ||||
|---|---|---|---|---|
| Jun-16 | Dec-15 | Jun-15 | ||
| Shareholders | 12.172 | 11.998 | 12.045 | |
| Advance payments from customers | 574.311 | 1.040.429 | 948.683 | |
| Other Creditors | 764.607 | 213.458 | 672.536 | |
| 1.351.090 | 1.265.885 | 1.633.264 | ||
As of June 30, 2016, December 31, 2015 and June 30, 2015 the caption public entities can be summarized as follows:
| Current Assets | |||
|---|---|---|---|
| Jun-16 | Dec-15 | Jun-15 | |
| Public Entities | |||
| Income Tax | 1.230.200 | 1.148.070 | 1.393.300 |
| Value Added Taxes | 2.385.800 | 105.973 | 1.348.537 |
| 3.616.000 | 1.254.043 | 2.741.837 |
| Current Liabilities | |||||
|---|---|---|---|---|---|
| Public Entities | Jun-16 | Dec-15 | Jun-15 | ||
| Income Taxes withheld | 400.899 | 384.748 | 428.313 | ||
| Value Added Taxes | 8.186.655 | 6.455.178 | 6.193.267 | ||
| Income Tax (estimated tax) (Note 25) | 488.464 | - | 238.704 | ||
| Vehicles Tax | 1.706.590 | 1.590.785 | 2.033.735 | ||
| Custom Duties | 138.061 | 272.437 | 144.301 | ||
| Employee's social contributions | 795.100 | 687.222 | 799.031 | ||
| Others | 343.423 | 272.717 | 276.098 | ||
| 12.059.192 | 9.663.087 | 10.113.449 | |||
(Amounts in Euros)
As of June 30, 2016, December 31, 2015 and June 30, 2015 the caption "Other Current Liabilities" was as follows:
| Jun-16 | Dec-15 | Jun-15 | |
|---|---|---|---|
| Accrued Cost | |||
| Vacation pay and bonus | 6.592.493 | 5.075.222 | 6.689.841 |
| Advertising Campaigns | 2.216.796 | 2.072.912 | 1.112.499 |
| Rappel charges attributable to fleet managers | 2.080.768 | 1.556.149 | 1.986.618 |
| Specialization cost assigned to vehicles sold | 1.025.524 | 961.699 | 2.361.556 |
| Commission | 834.914 | 446.254 | 324.974 |
| Advance External Supplies and Services | 472.519 | 318.778 | 211.372 |
| Insurance | 468.663 | 317.508 | 387.254 |
| Accrual for Vehicles Tax | 455.329 | 526.486 | 414.422 |
| Municipal Property Tax | 149.946 | 127.849 | 143.106 |
| Rents | 126.478 | 80.000 | 79.199 |
| Warranty claims | 122.085 | 66.336 | 130.685 |
| Royalties | 95.622 | 108.164 | - |
| Specialized work | 62.732 | 49.812 | 232.538 |
| Supply costs | 56.388 | 367.524 | 578.773 |
| Interest | 50.628 | 92.530 | 239.768 |
| Others | 1.834.828 | 967.829 | 456.265 |
| 16.645.713 | 13.135.052 | 15.348.870 | |
| Deferred Income | |||
| Vehicle maintenance contracts | 3.526.785 | 3.025.367 | 2.176.496 |
| Publicity recuperation | 550.391 | 539.568 | 589.166 |
| Subsidy granted | 509.507 | 509.507 | 513.581 |
| Interest Charged to Customers | 5.485 | 6.457 | 8.749 |
| Others | 207.536 | 248.184 | 54.284 |
| 4.799.704 | 4.329.083 | 3.342.276 | |
| Total | 21.445.417 | 17.464.135 | 18.691.146 |
Toyota Caetano (together with other associated and related companies) incorporated, by public deed dated December 29, 1988, the Salvador Caetano Pension Fund, which was subsequently updated in January 2, 1994, in December 29, 1995 and in December 23, 2002.
As of June 30, 2016, the following companies of Toyota Caetano Group were associates of the Salvador Caetano Pension Fund:
The Pension Fund was set up to, while Toyota Caetano Group maintains the decision to make contributions to the referred fund, provide employees (beneficiaries), at their retirement date, the right to a pension complement, which is not subject to update and is based on a percentage of the salary, among other conditions.
A request was made as of December 19, 2006 to the fund manager of the Salvador Caetano Pension Fund (GNB-Sociedade Gestora de Fundo de Pensões.), to act near the "ISP - Instituto de Seguros de Portugal" and take the necessary measures to change the defined benefit plan into a defined contribution plan, among other changes.
Following the above mentioned, a dossier was sent on December 18, 2007 to Instituto de Seguros de Portugal containing the proposals to change the "Constitutive Contract" of Salvador Caetano Pension Fund, as well as the minute of approval of these changes by the Pensions Fund Advisory Committee, and requesting, with effects as from January 1, 2008, the approval of these changes.
The proposal for changing the pension complement, dully approved by the Pension Funds Advisory Committee ("Comissão de Acompanhamento do Fundo de Pensões"), includes the maintenance of a defined benefit plan for the current retired workers and ex-employees with acquired rights, as well as for all the current employees with more than 50 years and more than 15 years of service completed until January 1, 2008. A new group will be created to which all current employees with less than 50 years and/or less than 15 years of service will be transferred.
At December 29, 2008 Toyota Caetano Portugal, S.A. received a letter from ISP - Instituto de Seguros de Portugal (Portuguese Insurance Institute) with the approval of the pretended alterations and entering into force starting from January 1, 2008. ISP determined in the referred approval that the employees associated to the Salvador Caetano Pension Fund who at January 1, 2008 had achieved 15 years of service and had ages inferior to 50 years (and that shall integrate a Defined Contribution Plan) have the right to an individual "initial capital" according to the new Plan, determined according to the actuarial responsibilities as at December 31, 2007 and based on the presumptions and criteria used on that year.
The actuarial presumptions used at 2014 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 0%, 0% and 2,3%, respectively. To this date were used the assumptions as December 31, 2015.
At December 31, 2015 the Group's responsibilities to the defined benefit plan and the assets of the Fund allocated can be summarized as follows:
| Defined benefit plan | 2015 |
|---|---|
| Responsibility amount Fund Amount |
33.997.681 28.297.093 |
The net liability of Toyota Caetano Portugal Group evidenced above is guaranteed by a provision recorded in the amount of about 5,7 million euros, reflected in the balance sheet under "Pension Fund Liabilities".
(Amounts in Euros)
Movements in provisions and accumulated impairment losses over the six month period ended as of June 30, 2016, and June 30, 2015 were as follows:
| 30-06-2016 | ||||
|---|---|---|---|---|
| Opening Balances |
Increases | Other regularizations |
Ending Balances |
|
| Accumulated impairment losses in investment properties Accumulated impairment losses in accounts Receivable (Note 11) Accumulated impairment losses in inventories (Note 10) Provisions |
2.780.809 9.710.649 1.311.777 303.252 |
- - 252.454 98.394 |
- (4.991) - (60.383) |
2.780.809 9.705.658 1.564.231 341.263 |
| 30-06-2015 | |||||
|---|---|---|---|---|---|
| Opening Balances |
Increases | Disposals and Other |
Other regularizations |
Ending Balances |
|
| Accumulated impairment losses in investment properties | 1.781.995 | - | - | - | 1.781.995 |
| Accumulated impairment losses in accounts Receivable (Note 11) | 10.338.615 | - | - | (717) | 10.337.898 |
| Accumulated impairment losses in inventories (Note 10) | 1.901.129 | - | (24.828) | - | 1.876.301 |
| Provisions | 311.551 | 53.216 | - | (58.714) | 306.053 |
As of June 30, 2016, December 31, 2015 and June 30, 2015, the caption "Provisions" has the following breakdown:
| Jun-16 | Dec-15 | Jun-15 | |
|---|---|---|---|
| Warranty provision | 108.917 | 103.238 | 106.039 |
| Litigations in progress | 232.346 | 200.014 | 200.014 |
| 341.263 | 303.252 | 306.053 | |
The derivative financial instruments used by the group as of June 30, 2016 were as follows:
Although these derivatives (two interest rate swap contracts) were contracted for interest rate hedging purposes as well as funding cost optimization, they haven't been designated for hedge accounting. The fair value of these derivative financial instruments as of June 30, 2016 was negative on 63.778 Euros (115.980 Euros negative as of June 30, 2015) and comprises a total exposure of 6,1 million Euros since December 22, 2015 for the remaining period of one year and three months.
These derivatives' valuations were provided as of June 30, 2016 by the bank with whom they were contracted, taking into account future cash flows and risk estimates (level 2 fair value hierarchy as set out in paragraph 27-A of IFRS7 - measurement inputs based on assumptions indirectly observable in the market).
The main characteristics of this contract can be summarized as follows:
| Fair Value | ||||||
|---|---|---|---|---|---|---|
| Derivate financial instrument | Swap rate | Rate receivable | Type | Jun-16 | Dec-15 | Changes in financial statement |
| Swap BBVA | 1,1000% | Euribor 3M | Negotiation | (63.778) | (94.532) | (30.754) |
| (63.778) | (94.532) | (30.754) | ||||
It is the intention of Toyota Caetano Group to hold these instruments until their maturities, so this form of assessment reflects the best estimate of present value of future cash flows to be generated by such instruments.
The income tax for the six month period ended as of June 30, 2016 and 2015 was as follows:
| Jun-16 | Jun-15 | |
|---|---|---|
| Insufficient taxes estimation | 32.522 | 183.099 |
| Tax Refunds | (751.824) | - |
| Current taxes estimation (Note 20) | 488.464 | 238.704 |
| Deferred income taxes (Note 14) | 170.889 | 342.335 |
| (59.949) | 764.138 | |
The value of the caption "Tax refunds", relates to the 2004 tax refund, resulting of the correction to the gain of sale of a property.
The detail of sales and services rendered by geographic markets, during the six month periods ended as of June 30, 2016 and 2015, was as follows:
| Jun-16 | Jun-15 | |||
|---|---|---|---|---|
| Market | Amount | % | Amount | % |
| National | 147.879.600 | 83,87% | 144.713.400 | 97,07% |
| Belgium | 23.237.606 | 13,18% | 16.560 | 0,01% |
| African Countries with Official Portuguese Language | 5.072.845 | 2,88% | 4.095.427 | 2,75% |
| Spain | 23.409 | 0,01% | 22.738 | 0,02% |
| Germany | 2.775 | 0,00% | 3.570 | 0,00% |
| United Kingdom | 2.232 | 0,00% | 119.382 | 0,08% |
| Others | 97.989 | 0,06% | 100.146 | 0,07% |
| 176.316.456 | 100,00% | 149.071.223 | 100,00% | |
The increase occurred in the market "Belgium", refers to sales for the LC70 model.
Additionally, sales and services rendered by activity were as follows:
| Jun-16 | Jun-15 | ||||
|---|---|---|---|---|---|
| Activity | Amount | % | % | ||
| Vehicles | 143.971.702 | 81,66% | 115.438.763 | 77,44% | |
| Spare Parts | 21.014.807 | 11,92% | 22.837.056 | 15,32% | |
| Repairs and after sales services | 8.858.433 | 5,02% | 8.808.910 | 5,91% | |
| Others | 2.471.514 | 1,40% | 1.986.494 | 1,33% | |
| 176.316.456 | 100,00% | 149.071.223 | 100,00% | ||
The caption "External supplies and services" was as follows:
| Jun-16 | Jun-15 | |
|---|---|---|
| Subcontracts | 871.821 | 992.244 |
| Specialized Services | 7.585.903 | 6.689.633 |
| Professional Services | 2.514.096 | 2.508.946 |
| Advertising | 3.653.231 | 2.824.629 |
| Vigilance and Security | 202.692 | 200.499 |
| Professional Fees | 386.747 | 385.525 |
| Commissions | 120.860 | 95.161 |
| Repairs and Maintenance | 708.277 | 674.873 |
| Materials | 365.176 | 350.446 |
| Utilities | 1.542.022 | 1.454.229 |
| Travel and transportation | 1.390.034 | 1.140.335 |
| Traveling expenses | 691.289 | 628.175 |
| Personnel transportation | 48.835 | 48.703 |
| Transportation of materials | 649.910 | 463.457 |
| Other supplies | 6.434.784 | 6.598.732 |
| Rent | 1.628.316 | 1.330.495 |
| Communication | 335.903 | 319.535 |
| Insurance | 635.482 | 601.903 |
| Royalties | 199.987 | 80.130 |
| Notaries | 14.986 | 16.095 |
| Cleaning and comfort | 341.301 | 293.848 |
| Others Services | 3.278.809 | 3.956.726 |
| 18.189.740 | 17.225.619 |
The c "Others services" includes about 1.9 million euros, relating to guarantees claims.
Payroll expenses are decomposed as follows:
| Jun-16 | Jun-15 | |
|---|---|---|
| Payroll Management | 235.930 | 235.930 |
| Payroll Personnel | 13.417.303 | 13.067.801 |
| Benefits Plan | 1.016.277 | 880.929 |
| Termination Indemnities | 98.401 | 75.408 |
| Social Security Contribution | 3.326.193 | 3.427.979 |
| Workmen´s Insurance | 208.927 | 187.225 |
| Others | 1.740.736 | 1.717.277 |
| 20.043.767 | 19.592.549 | |
The remuneration of members of the board of Toyota Caetano Portugal, S.A. in the six months ended as of June 30, 2016 and 2015 were as follows:
| Board Members | Jun-16 | Jun-15 |
|---|---|---|
| Board of Directors Fixed remunerations |
235.930 | 235.930 |
During the six-month period ended as of June 30, 2016 and 2015, the average number of personnel was as follows:
| Personnel | Jun-16 | Jun-15 |
|---|---|---|
| Employees | 1.092 | 1.077 |
| Workers | 499 | 456 |
| 1.591 | 1.533 | |
(Amounts in Euros)
As of June 30, 2016 and 2015, the caption "Other operating income" and "Other operating expenses" were as follows:
| 19.920.201 | 20.321.463 | |
|---|---|---|
| Others | 2.129.030 | 2.023.122 |
| Materials | 48.075 | 26.807 |
| Gains in the disposal Tangible Fixed Assets | 134.312 | 113.516 |
| Transport expenses recovered | 282.039 | 229.175 |
| Services provided | 848.009 | 1.045.483 |
| Rents expenses recovered | 559.054 | 489.799 |
| Advertising expenses and sales promotion recovered | 950.759 | 845.378 |
| Subsidies | 1.328.908 | 1.222.865 |
| Work for the Company | 1.659.252 | 1.552.178 |
| Rents charged (Note 6) | 1.841.472 | 1.351.497 |
| Commissions | 1.936.915 | 1.628.021 |
| Guarantees recovered (Toyota) | 2.495.872 | 4.279.153 |
| Lease Equipment | 5.706.504 | 5.514.469 |
| Other operating income | Jun-16 | Jun-15 |
| Other operating expenses | Jun-16 | Jun-15 |
|---|---|---|
| Taxes | 583.918 | 661.269 |
| Bad debts | - | 895 |
| Losses in Inventories | - | 14.679 |
| Prompt payment discounts granted | 4.236 | 8.878 |
| Losses in other investments | 10 | 6.406 |
| Losses in other non-financial investments | 40.067 | 2.833 |
| Corrections to previous years | 86.252 | 54.622 |
| Donations | 4.750 | 730 |
| Subscriptions | 11.129 | 9.820 |
| Fines and penalties | 15.198 | 80.494 |
| Others | 751.687 | 717.392 |
| 1.497.247 | 1.558.018 | |
(Amounts in Euros)
Consolidated net financial results as of June 30, 2016 and 2015 were as follows:
| Expenses and Losses | Jun-16 | Jun-15 |
|---|---|---|
| Interest | 887.986 | 814.942 |
| Other Financial Expenses | 197.490 | 206.719 |
| 1.085.476 | 1.021.661 | |
| Income and Gains | Jun-16 | Jun-15 |
| Interest | 44.634 | 26.547 |
| Other Financial Income | 30.754 | 33.782 |
| 75.388 | 60.329 |
We summarize in the table below a resume of financial instruments of Toyota Caetano Group as of June 30, 2016, December 31, 2015 and June 30, 2015:
| Financial Assets | Financial Liabilities | |||||
|---|---|---|---|---|---|---|
| Jun-16 | Dec-15 | Jun-15 | Jun-16 | Dec-15 | Jun-15 | |
| Derivate Financial Instruments | - | - | - | 63.778 | 94.532 | 115.980 |
| Available for sale Assets | 3.367.091 | 3.463.450 | 3.335.048 | - | - | - |
| Accounts Receivable | 58.441.630 | 56.877.240 | 52.065.779 | - | - | - |
| Other credits - Current | 3.242.065 | 3.146.581 | 4.030.142 | - | - | - |
| Public Entities | 3.616.000 | 1.254.043 | 2.741.837 | - | - | - |
| Loans | - | - | - | 68.002.363 | 63.813.316 | 54.761.332 |
| Other Creditors | - | - | - | 1.351.090 | 1.265.885 | 1.633.264 |
| Public Entities | - | - | - | 12.059.192 | 9.663.087 | 10.113.449 |
| Accounts Payable | - | - | - | 30.355.943 | 36.237.691 | 37.456.785 |
| Cash and Cash Equivalents | 8.310.031 | 11.364.954 | 7.692.891 | - | - | - |
| 76.976.817 | 76.106.268 | 69.865.697 | 111.832.366 | 111.074.511 | 104.080.810 | |
| Financial Assets | Financial Liabilities | |||||
|---|---|---|---|---|---|---|
| Jun-16 | Dec-15 | Jun-15 | Jun-16 | Dec-15 | Jun-15 | |
| Derivate Financial Instruments | - | - | (63.778) | (94.532) | (115.980) | |
| Available for sale Assets | 3.367.091 | 3.463.450 | 3.335.048 | - | - | - |
| 3.367.091 | 3.463.450 | 3.335.048 | (63.778) | (94.532) | (115.980) | |
| Available for sale Assets | Derivate Financial Instruments | Level | |||
|---|---|---|---|---|---|
| At fair value | At cost | Cash Flow Hedge Accounting |
Negotiation | ||
| Cimóvel Fund | 3.300.355 | - | - | - | 1) |
| Others | - | 66.736 | - | - | 3) |
| Interest rate swap | - | - | - | (63.778) | 2) |
According to the paragraph 27-A of IFRS 7, we provide below, the disclosure of classification and measurement of financial instruments' fair value, by hierarchy level:
Impact on the Income Statement and Other Comprehensive Income
| Jun-16 | Dec-15 | Jun-15 | Jun-16 | Dec-15 | Jun-15 |
|---|---|---|---|---|---|
| - | - | - | (30.754) | (55.230) | (33.782) |
| - (33.782) |
|||||
| (96.359) (96.359) |
Impact on equity (221.742) |
215.414 | - (221.742) 215.414 (30.754) |
Impact on Income - (55.230) |
During the six month period ended as of June 30, 2016 the minimum payments for operational leases amounted to approximately 6 million Euros (6.4 million Euros in 2015). Of that amount, 2.2 million relate to payments with maturity of one year and 3.8 million relate to payments to occur in the period between two to five years.
| Minimum payments of operational lease | Jun-16 | Dec-15 |
|---|---|---|
| Not more than one year | 2.285.176 | 2.204.088 |
| More than one year and no more than five | 3.756.052 | 4.172.432 |
| More than five years | - | 62.214 |
| 6.041.228 | 6.438.734 | |
(Amounts in Euros)
Balances and transactions between the Parent Company and its affiliates, which are related entities to the Parent Company, were eliminated in the consolidation process, so they will not be disclosed in this Note. Balances and transactions details between the Group and the related parties can be summarized as follows:
| Comercial Debts Products |
Fixed assets | Services | Others | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Company | Receivable | payable | Sales | Purchases | Purchases | Disposals | Rendered | Obtained | Costs | Income |
| Amorim Brito & Sardinha, Lda. | - | - | - | - | - | - | - | - | - | 972 |
| Atlântica - Companhia Portuguesa de Pesca, S.A. | 5.152 | - | - | - | - | - | - | - | - | 34 |
| Attentionfocus - Lda. | 10 | - | - | - | - | - | - | - | - | 34 |
| Auto Partner Imobiliária, S.A. | 10 | 15.094 | - | - | - | - | - | 111.524 | - | 9 |
| Cabo Verde Rent-a-Car, Lda. | 99.742 | 66.094 | 86.839 | - | - | - | - | 66.592 | - | - |
| Caetano Active (Sul), Lda. | 3.625 | - | 473 | 4.384 | - | - | 1.107 | 3.752 | - | 665 |
| Caetano Aeronautic, S.A. | 545.165 | - | 548 | - | - | - | 15.436 | - | - | 220.341 |
| Caetano Baviera - Comércio de Automóveis, S.A. | 1.111.168 | 211.205 | 1.698.502 | 244.670 | - | - | 8.945 | 95.819 | 117.046 | 221.647 |
| Caetano City e Active (Norte), S.A. | 57 | 220 | (500) | 111 | - | - | (615) | (327) | (44) | 328 |
| Caetano Drive ,Sport e Urban, S.A. | 195.079 | 227.649 | 22.200 | 4.729 | 141.951 | 120.845 | 56.679 | 133.752 | 21.567 | 129.503 |
| Caetano Energy, S.A. | 925 | - | 624 | - | - | - | 370 | - | - | 2.548 |
| Caetano Fórmula , S.A. | 75.662 | 242.970 | 18.357 | 404.398 | 35.645 | - | 22.591 | (16.940) | 500 | 69.883 |
| Caetano Formula East África, S.A. | - | - | - | - | - | - | - | - | - | 3 |
| Caetano Fórmula Moçambique S.A | - | - | - | - | - | - | - | - | - | 60 |
| Caetano Fórmula West África, S.A. | - | - | 223 | - | - | - | - | - | - | 183 |
| Caetano Motors, S.A. | 40.251 | 34.841 | (2.262) | 143 | - | - | (294) | 14.965 | - | 81.981 |
| Caetano Move África, S.A. | - | - | - | - | - | - | - | - | - | 2 |
| Caetano One CV, Lda. | 271.315 | 73.762 | 78.514 | 2.478 | - | - | - | 65.980 | - | - |
| Caetano Parts, Lda. | 317.257 | 1.753.886 | 804.955 | 3.156.639 | - | - | 1.043 | 9.414 | 1.577 | 92.561 |
| Caetano Power, S.A. | 120.264 | 29.406 | 14.388 | (80) | 21.628 | 19.774 | 4.359 | (4.319) | - | 86.665 |
| Caetano Retail (S.G.P.S.), S.A. | 41.425 | (1.188) | 505 | - | - | - | - | 984 | - | 35.975 |
| Caetano Star, S.A. | 55.770 | 137.738 | 15.784 | 92.055 | - | - | 13.050 | 18.121 | - | 7.474 |
| Caetano Technik, Lda. | 107.510 | 55.071 | (7.909) | 608 | - | - | (649) | (5.268) | 2.956 | 84.933 |
| CaetanoBus - Fabricação de Carroçarias, S.A. | 7.422.319 | 132.327 | 24.023 | 42.850 | - | - | 8.339 | 70.351 | 26 | 1.614.033 |
| Caetsu Publicidade, S.A. | 3.551 | 684.408 | 48.701 | - | - | - | 9.304 | 1.442.677 | - | 1.477 |
| Carplus - Comércio de Automóveis, S.A. | 60.493 | 403 | 24.428 | - | - | - | 57.418 | - | - | 110.159 |
| Choice Car, S.A. | 3.807 | - | - | - | - | - | - | - | - | 3.095 |
| Ciberguia, S.A. | 9.954 | - | - | - | - | - | - | - | - | - |
| COCIGA - Construções Civis de Gaia, S.A. | 7.175 | 74.356 | 1.583 | - | 142.248 | - | 887 | 25.859 | - | 1.656 |
| Dinâmiconverte - Energias Renováveis Unipessoal, Lda. | 1.600 | - | - | - | - | - | - | - | 1.301 | |
| Finlog - Aluguer e Comércio de Automóveis, S.A. | 1.629.478 | 429.555 | 2.765.933 | 418.293 | - | - | 119.133 | 544.797 | 27.018 | 89.650 |
| Fundação Salvador Caetano | 617.686 | 29.242 | - | - | - | - | - | - | - | - |
| Globalwatt, (S.G.P.S.), S.A. | - | - | - | - | - | - | - | - | - | 70 |
| Grupo Salvador Caetano, (S.G.P.S.), S.A. | 42 | - | - | - | - | - | - | - | - | 34 |
| Guérin - Rent-a-Car (Dois), Lda. | 96.270 | 22.228 | 1.265 | 87.097 | - | - | 311.167 | 23.173 | - | 11.564 |
| Ibericar Auto Nipon, S.A. | 775 | - | - | - | - | - | - | - | - | - |
| Ibericar Benet, S.L. | 248 | - | - | - | - | - | - | - | - | 848 |
| Ibericar Cadi, S.A. | 165 | - | - | - | - | - | - | - | - | 312 |
| Ibericar Gestoso, S.L. | 360 | - | - | - | - | - | - | - | - | 360 |
| Ibericar MOVIL, S.L. | 120 | - | - | - | - | - | - | - | - | 120 |
| Ibericar Reicomsa, S.A. | 355 | - | - | - | - | - | - | - | - | 355 |
| LavorAuto - Administração e Consultoria de Empresas, S.A. | 21 | - | - | - | - | - | - | 15.299 | - | 17 |
| Lidera Soluciones, S.L. | 194 | 2.600 | - | - | - | - | - | 56.110 | - | 194 |
| Lusilectra - Veículos e Equipamentos, S.A. | 117.499 | 110.066 | 31.209 | 28.698 | 122.537 | - | 38.391 | 170.373 | 420 | 29.368 |
| MDS Auto - Mediação de Seguros, S.A. | 461 | - | 316 | - | - | - | 151 | (1.593) | (48.768) | 89.194 |
| Movicargo - Movimentação Industrial, Lda. | 95.377 | 219.611 | 10 | - | - | - | 2.611 | 24.662 | - | 1.817 |
| Platinium V.H. - Importação de Automóveis, S.A. | 6.359 | - | - | - | - | - | 855 | (499) | - | 17.601 |
| P.O.A.L. - Pavimentações e Obras Acessórias, S.A. | 17.806 | - | - | - | - | - | - | - | - | - |
| Portianga - Comércio Internacional e Participações, S.A. | 38.982 | 31.132 | 2.619 | 56.698 | - | - | 20.379 | 90.463 | - | 16.210 |
| RARCON - Arquitectura e Consultadoria, S.A. | 1.230 | 23.755 | 18.738 | - | 1.748 | - | 873 | 17.524 | - | 39 |
| Rigor - Consultoria e Gestão, S.A. | 77.307 | 1.259.050 | 691 | - | 155.525 | - | 67.629 | 2.048.031 | 2.994 | 113.564 |
| Robert Hudson, LTD | 27.952 | - | 1.715 | - | - | - | - | - | - | 804 |
| Salvador Caetano Auto África, (S.G.P.S.), S.A. | 811.944 | - | - | - | - | - | - | - | - | 60 |
| Salvador Caetano Equipamentos, S.A. | 544 | - | 442 | - | - | - | - | - | - | 2 |
| Salvador Caetano Indústria (S.G.P.S.), S.A. | 252 | - | - | - | - | - | - | - | - | 252 |
| SIMOGA - Sociedade Imobiliária de Gaia, S.A. | 1.036 | - | - | - | - | - | - | - | - | - |
| SPRAMO - Publicidade & Imagem, S.A. | - | 681 | - | - | - | - | - | 42.033 | - | 153 |
| Tovicar - Sociedade Comercial de Automóveis, S.A. | 10.214 | - | - | - | - | - | - | - | - | - |
| Turispaiva - Sociedade Turística Paivense, S.A. | 541 | - | - | - | - | - | - | - | - | 440 |
| VAS África (S.G.P.S.), S.A. | - | - | - | - | - | - | - | - | - | 3 |
| Vas Cabo Verde, Sociedade Unipessoal, S.A. | 74.692 | - | 70.779 | 11.768 | - | - | - | 1.143 | - | - |
| 14.127.196 | 5.866.162 | 5.723.693 | 4.555.539 | 621.282 | 140.619 | 759.159 | 5.064.452 | 125.292 | 3.140.553 | |
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, 2016 and 2015, is as follows:
| NA TIO NA L |
FO RE IGN |
|||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ve hic les Ind ust rial Eq uip nt me |
Oth ers |
Ve | hic les |
Ind ust |
rial Eq uip me |
nt | Re val mo s |
Co lida ted nso |
||||||||
| Ind ust ry |
Co ial mm erc |
Se rvic es |
Re l nta |
Ma chi nes |
Se rvic es |
Re l nta |
Ind ust ry |
Co ial mm erc |
Ma chi nes |
Se rvic es |
Re l nta |
|||||
| PR OF IT |
||||||||||||||||
| Ext al s ale ern s |
281 .83 6 |
193 .42 5.0 76 |
7.6 18. 246 |
1.6 45. 553 |
9.2 69. 710 |
2.0 46. 551 |
6.2 36. 394 |
957 .34 6 |
23. 615 .48 3 |
8.4 28. 725 |
24. 515 |
4.8 29 |
8.8 20 |
( 4) 71. 537 .12 |
182 .02 5.9 60 |
|
| Inc om e |
||||||||||||||||
| Op tion al i era nco me |
( 129 .22 6) |
2.1 11. 197 |
117 .34 5 |
( 407 .83 9) |
1.0 75. 992 |
857 .07 9 |
340 .32 1 |
( 2.1 50) |
( 1.3 82. 397 ) |
354 .50 3 |
1.4 59 |
167 | 5.3 30 |
465 | 2.9 42. 246 |
|
| Fin ial inc anc om e |
4.9 32 |
( 725 .06 5) |
( 31. 511 ) |
( 61. 301 ) |
( 21. 799 ) |
( 4.2 36) |
( 49. 744 ) |
( 33) |
( 99. 238 ) |
( 22. 032 ) |
( 24) |
- | ( 37) |
- | ( 1.0 10. 088 ) |
|
| Ne t In ith lled ntro com e w non -co inte ts res |
( 124 .29 4) |
1.3 58. 653 |
53. 260 |
( 469 .14 0) |
1.0 54. 193 |
852 .84 3 |
290 .57 7 |
( 2.2 17) |
( 1.4 81. 635 ) |
278 .09 7 |
1.4 35 |
167 | 5.2 93 |
174 .87 5 |
1.9 92. 107 |
|
| Oth Inf atio er orm n |
||||||||||||||||
| Tot al c olid d a ate ts ons sse |
22. 475 .98 0 |
247 .34 7.2 06 |
29. 637 .24 0 |
22. 299 .07 6 |
17. 370 .96 9 |
9.4 73. 292 |
31. 844 .47 5 |
22. 821 .88 8 |
- | 9.3 99. 508 |
- | - | - | ( 145 .32 7.8 66) |
267 .34 1.7 68 |
|
| Tot al c olid d li abi litie ate ons s |
382 .94 2 |
148 .97 0.3 71 |
20. 150 .66 9 |
16. 865 .28 9 |
1.4 93. 538 |
263 .23 0 |
29. 785 .75 0 |
3.6 01. 891 |
- | 3.3 04. 798 |
- | - | - | ( 83. 775 .82 0) |
141 .04 2.6 58 |
|
| Ca ital Ex p pen ses |
6.3 70 |
1.3 57. 984 |
125 .30 8 |
11. 864 .33 7 |
- | 28. 900 |
5.4 73. 268 |
131 | - | 64. 085 |
- | - | - | 209 .90 9 |
19. 130 .29 2 |
|
| De cia tion pre |
614 .50 8 |
1.7 24. 678 |
212 .38 9 |
1.7 87. 829 |
30. 706 |
19. 320 |
2.4 88. 307 |
350 | - | 83. 722 |
- | - | - | 124 .84 0 |
7.0 86. 649 |
|
30-06-2016
| NA TIO NA L FO RE IGN Re val Co lida ted mo s nso Ve hic les Ind rial Eq uip Ve hic les Ind rial Eq uip ust nt ust nt me me Oth ers Ind Co ial Se rvic Re l Ma chi Se rvic Re l Ind Co ial Ma chi Se rvic Re l ust nta nta ust nta ry mm erc es nes es ry mm erc nes es PR OF IT Ext al s ale 7.5 30. 475 180 .85 1.1 06 7.7 65. 607 2.8 80. 909 12. 203 .20 3 1.0 36. 853 6.0 16. 131 222 .60 0 7.3 77. 449 49. 936 4.6 16 8.8 20 ( 71. 359 .01 3) 154 .58 8.6 92 ern s - Inc om e Op tion al i ( 2.2 53. 483 ) 1.7 20. 280 31. 560 ( 106 .08 0) 331 .03 9 807 .50 2 1.0 27. 676 ( 1.5 20) ( 36. 968 ) 423 .05 9 04 3.5 92 4.9 37 852 .64 2 2.8 09. 940 5.7 era nco me Fin ial inc ( 30. 491 ) ( 320 .20 1) ( 10. 095 ) 237 ( 13. 952 ) ( 4.4 02) ( 568 .73 7) ( 6) ( 828 ) ( 12. 643 ) ( 156 ) ( 20) ( 38) ( 961 .33 2) anc om e - Ne t In ith lled ntro com e w non -co inte ( 2.2 83. 974 ) 1.0 261 13. 284 ( 105 .84 3) 315 .24 0 798 .42 3 456 .00 8 ( 1.5 31) ( 37. 796 ) 406 .29 6 16 3.5 51 4.8 70 430 .01 1.0 59. 322 ts 55. 5.5 7 res Oth Inf atio er orm n Tot al c olid d a ( 60) ate ts 37. 418 .18 4 255 .28 6.8 28 8.7 58. 337 13. 542 .31 6 8.6 36. 052 2.1 14. 116 31. 736 .32 0 23. 902 .27 2 10. 437 .27 5 135 .97 1.5 255 .86 0.1 40 ons sse - - - - Tot al c olid d li abi litie 7.4 27. 213 145 .91 5.4 02 5.7 22. 125 11. 723 .89 8 1.0 41. 307 278 .95 2 22. 013 .99 1 3.5 84. 864 3.7 01. 389 ( 71. 533 .12 6) 129 .87 6.0 15 ate ons s - - - - Ca ital Ex 3.2 64. 784 1.8 22. 537 155 .31 1 7.2 93. 455 954 .65 2 24. 784 05. 970 94 85. 561 ( 1.5 82. 529 ) 19. 724 .61 9 7.7 p pen ses - - - - De cia tion 432 .93 0 1.7 39. 612 95. 605 1.3 52. 363 38. 875 33. 414 2.1 46. 247 58 100 .77 8 85. 181 6.0 25. 063 pre - - - - |
30- 06- 201 |
5 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
The line "Turnover" includes Sales, Service Rendered and the amount of about 5.709.504 Euros (5.517.469 Euros as of June 30, 2015) related to equipment rentals accounted in Other Operating Income (Note 29).
The column "Eliminations" mainly includes the elimination of transactions between Group companies included in consolidation, mainly belonging to Vehicles segment.
(Amounts in Euros)
As of June 30, 2016, December 31, 2015 and June 30, 2015, Toyota Caetano Group had assumed the following financial commitments:
| Commitments | Jun-16 | Dec-15 | Jun-15 |
|---|---|---|---|
| Credits | 110.504 | 110.504 | 173.620 |
| Guarantees of Imports | 7.000.000 | 7.000.000 | 6.805.563 |
| 7.110.504 | 7.110.504 | 6.979.183 | |
The amounts presented classified as "Guarantees for Imports", the amount of 4 million Euros is related with guarantees on imports provided to Customs Agency.
Following the 29,9 million Euros debt contracting process occurred in 2012, remaining, at the present date, approximately 18,6 million Euros outstanding as a liability in the consolidated statement of financial position (see note 17), the Group has granted mortgages to the respective financial institutions, valued at about 37,8 million Euros, at the financing date.
The Company records in its assets, under the State Public Sector, the interest amount paid to the tax authorities in the amount of 24.909 Euros, which does not agree that the undue understand and, therefore, carried out the necessary judicial review, from the Administrative and Fiscal Court of Oporto.
As a consequence, Caetano Auto already received the judgment of the Administrative and Fiscal Court of Oporto which judged the appeal court fully founded and is only waiting the required deposit.
The Board of Directors and its legal advisors believe that the arguments presented by a former agent, who claims compensation for the termination of the agency contract, is not in accordance with applicable law and thereby no losses will result to the company, so it was not recorded any provision in the financial statements. The referred agency contract termination was due to breach of contractual obligation.
As of January 2011, the court judgement was concluded with favourable decision to the Group. However, in 2011 the referred former agent made an appeal in order to reopen the case, pending further decision. During 2012, were presented claims and counter-claims of appeal to the Supreme Court.
In 2014, the company was notified of the decision of the Supreme Court having to pay compensation for indirect damage and personal injuries. At this compensation will be deducted amounts receivable and the related interest on a case brought by the company against the agent.
It is conviction of the board that no responsibilities will result for the Group from the end of this process.
The board and its legal advisors believe that the collective dismissal process occurred in 2012, is based on strong market, structural and technological reasons.
It is conviction of the board that no responsibilities will arise for the Group from the end of this process.
(Amounts in Euros)
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 2016.
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.
(Amounts in Euros)
The earnings per share for the six month period ended as of June 30, 2016 and 2015 were computed based on the following amounts:
| Jun-16 | Jun-15 | |
|---|---|---|
| Net Income | ||
| Basic | 1.992.107 | 1.084.470 |
| Diluted | 1.992.107 | 1.084.470 |
| Number of shares | 35.000.000 | 35.000.000 |
| Earnings per share (basic and diluted) | 0,057 | 0,031 |
During the six month period ended as of June 30, 2016 and Jun 30, 2015 there were no changes in the number of shares outstanding.
Since the conclusion of the 1st semester and up to date, no significant events occurred.
The consolidated financial statements were approved by the Board of Directors on August 31th, 2016.
These financial statements are a translation of financial statements originally issued in Portuguese language in accordance with IFRS. In the event of discrepancies, the Portuguese language version prevails.
CHARTERED ACCOUNTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS - President
MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS MATTHEW PETER HARRISON NOBUAKI FUJII 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 2016 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 2016 accurately reflect the result of all operations developed in that same period by the Group Toyota Caetano Portugal, S.A.
Vila Nova de Gaia, 31th August 2016
José Domingos da Silva Fernandes Alberto Luis Lema Mandim Daniel Broekhuizen
(Free translation from the original in Portuguese)
1 In accordance with the Portuguese Securities Market Code (CVM), we present our limited review report on the consolidated financial information for the six-month period ended (30 June 2016 of Toyota Caetano Portugal, S.A. included in the consolidated Directors' Report, consolidated statement of financial position (which shows total assets of Euro 267,341,768 and total shareholders' equity of Euro 126,299,110, including non-controlling interests of Euro 1,676,790 and a net profit of Euro 1,962,558), consolidated income statement by nature, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the period then ended, and the corresponding notes to the accounts.
2 The amounts in the consolidated financial statements, as well as those in the additional financial information, are derived from the respective accounting records.
3 It is the responsibility of the Board of Directors: (a) to prepare consolidated financial information which present fairly, in all material respects, the financial position of the companies included in the consolidation, the consolidated results and the consolidated comprehensive income of their operations, the changes in consolidated equity and the consolidated cash flows; (b) to prepare historical financial information in accordance with International Accounting Standard 34 – Interim Financial Reporting as adopted by the European Union and which is complete, true, up-to-date, clear, objective and lawful as required by the CVM; (c) to adopt appropriate accounting policies and criteria; (d) to maintain appropriate systems of internal control; and (e) to disclose any significant matters which have influenced the activity, financial position or results.
4 Our responsibility is to verify the financial information included in the documents referred to above, namely as to whether it is complete, true, up-to-date, clear, objective and lawful, as required by the CVM, for the purpose of issuing an independent and professional report based on our work.
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 9077
5 Our work was performed with the objective of obtaining moderate assurance about whether the financial information referred to above is free from material misstatement. Our work was performed in accordance with the International Standard on Review Engagements 2410 (ISRE 2410), planned according to that objective, and consisted, primarily, in enquiries and analytical procedures, to review: (i) the reliability of the assertions included in the financial information; (ii) the appropriateness and consistency of the accounting principles used, as applicable; (iii) the applicability, or not, of the going concern basis of accounting; (iv) the presentation of the financial information; (v) as to whether the consolidated financial information is complete, true, up-to-date, clear, objective and lawful.
6 Our work also covered the verification that the information included in the consolidated Directors' Report is consistent with the remaining documents referred to above.
7 We believe that the work performed provides a reasonable basis for the issue of this limited review report on the half year information.
8 Based on the work, which was performed with the objective of obtaining a moderate level of assurance, nothing has come to our attention that leads us to conclude that the consolidated financial information for the six-month period ended 30 June 2016 contain material misstatements that affect its conformity with International Accounting Standard 34 – Interim Financial Reporting as adopted by the European Union and that it is not complete, true, up-to-date, clear, objective and lawful.
9 Based on the work, nothing has come to our attention that leads us to believe that the information included in the consolidated Directors' Report is not consistent with the consolidated financial information for the period.
August 31st, 2016
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. Registered in the Comissão do Mercado de Valores Mobiliários with no. 9077 represented by:
José Miguel Dantas Maio Marques, R.O.C.
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