Interim / Quarterly Report • Aug 29, 2014
Interim / Quarterly Report
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- Consolidated Accounts -
José Lourenço Abreu Teixeira – Chairman Manuel Fernando Monteiro da Silva – Vice 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 Takeshi Numa – Member Daniele Schillaci – Member Rui Manuel Machado de Noronha Mendes - Member Yoichi Sato – Alternate Member
José Domingos da Silva Fernandes - Chairman Alberto Luis Lema Mandim – Member Akito Takami – Member Maria Lívia Fernandes Alves – Alternate Member Takao Gonno - Alternate Member
José Pereira Alves and José Miguel Dantas Maio Marques representing PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda.
António Joaquim Brochado Correia - Alternate Member
The following interim report was prepared in accordance with the provisions laid down in article 246 (1-b) of Código dos Valores Mobiliários (Portuguese Securities Code) and contains an indication of the significant facts occurred within the period and the corresponding impact on the financial statement for each of the Companies belonging to the consolidation perimeter of Toyota Caetano Portugal.
Although in brief, the main expectations for the 2nd half-year of the ongoing financial year are also shown.
The first half-year was marked by an increase in production. Toyota business produced 761 units, corresponding to a 24% growth against the same period in 2013. The export market registered a 25% growth compared to the 1st half of 2013, and the Home market had a 24.2% growth.
To face this increase in production the company had to resort to overtime work during May and June, under the Bank of Hours' Agreement signed with the employees on previous financial years.
In turn, the activity of preparation of vehicles for delivery (PPO/PDI) registered a 7% decrease against the same period on the previous year.
| Production | 2014 (Jan-Jun) |
2013 | 2012 | 2011 | 2010 | |
|---|---|---|---|---|---|---|
| Toyota Units |
Physical | 761 | 1,111 | 1,381 | 2,025 | 2,553 |
| Converted Units |
Physical | 1,252 | 2,339 | 2,174 | 4,274 | 6,316 |
| Total Employees | 170 | 181 | 190 | 214 | 297 |
It should be mentioned that Toyota Motor Europe audited us regarding the 'Facilities Assessment' (Assessment of Critical Equipment Management)
Still in May, APCER audited our Quality and Environment Management systems (ISO 9001:2008 and ISO 14001:2012).
In the meanwhile and as an estimate of the activity to be developed for the 2nd half of the current financial year, over 900 Toyota physical units and about 1,000 conversions are expected to be assembled, thus achieving levels of productive occupation which will enable a significant improve in income for this plant.
The 1st half of 2014 showed a strong recovery, with total market growing about 41%, totalling 89.058 units.
This recovery is based on the positive development of both passenger and commercial vehicles, which show a 37.7% and 58.7% growth, respectively.
On the first half of the year, Toyota registered total sales of 3.638 units, representing a growth of 30.2% when compared to the same period of the previous year.
These figures result in a total market share of 4.1% for the first half of the year.
Source: ACAP
In view of the still uncertain macroeconomic environment and with the automotive market in deep growth, the make's performance in the first half of the year is explained by the following factors:
This evolution is sustained by the strong growth in Auris and Corolla models, as well as by the sale of hybrid vehicles. The decrease in market share is mainly due to the fact that our competitors' sales have grown based on the Rent-A-Car business (which we do not follow). and the growth of the premium market.
The drop in market share is explained mainly by the growth in Combos segment, where Toyota is not present (representing about 50% of light and commercial vehicles' market)
Highlight should be given to the good performance of Hilux and Dyna models which rank 1st on the sales ranking for Pickup and Chassis Cabin segments, with market shares of 28%.
For the second half of the year, the outlook is favourable due to the launch of new products, which we see as core products:
The development of the premium market on the first half of 2014 was quite positive. This market segment showed a significant growth of 38%, in line with the growth registered in the passenger vehicles total market.
This implies keeping the premium market weight on about 25% for the total passenger vehicles market. This performance is explained by the following:
Expanding the offer of premium makes to new segments and engines (hybrid and electric);
Commercial aggressiveness of the main premium makes.
Source: ACAP
With a quite superior behaviour to the one registered by the market, Lexus shows a 157% growth compared to 2013, enabling to reach a market share of 0.8% for the premium market (+0.4 p.p. when compared to the same period in 2013).
This performance is explained by the growth in commercial competitiveness, sustained by progressively renewing the make's range of hybrid models, mainly with the launch of the new CT 200h, IS 300h and GS 300h.
For the second half of the year, a even more favourable development is expected for the make's sales performance due to the launch of a new model: the new SUV Lexus NX 300h.
Source: ACAP
| LHM MARKET | TOYOTA + BT SALES | |||||||
|---|---|---|---|---|---|---|---|---|
| 1st Half-year | Variation | 1st Half-year '13 | 1st Half-year '14 | Variation | ||||
| '13 | '14 | % | Qty | Share | Qty | Share | % | |
| Counterbalanced Forklifts |
362 | 505 | 39.5% | 56 | 15.5% | 165 | 32.7% | 194.6% |
| Warehouse Equipment |
515 | 627 | 21.7% | 166 | 32.2% | 150 | 23.9% | -9.6% |
| TOTAL LHM | 877 | 1132 | 29.1% | 222 | 25.3% | 315 | 27.8% | 41.9% |
Source: ACAP
The 1st half of 2014 seems to confirm the recovery of the economic activity. The national market of load handling machines (LHM) has behaved, at global level, in a positive way, registering a 29.1% growth compared to the same period in 2013.
This variation was unified in a 39.5% growth of the counterbalanced segments and in a 21.7% growth of the warehouse equipment, respectively.
At a global level, Toyota / BT sales grew by 41.9%, above the market, enabling to keep and strengthen Toyota + BT leadership with a market share of 27.8%.
In what concerns Toyota Counterbalanced Forklifts, in the first 6 months of the year 165 units were sold, standing for a sales growth of 194.6% and an accumulated market share of 32.7%. This means that industrial activity is showing a better performance and allows for some fleet renewals, which have been delayed for the last couple of years.
Regarding BT Warehouse Equipment, sales volume decreased by 16 units compared to the same period in 2013, with this fact not being relevant and representing some sale stability within this segment. It keeps a 23.9% share accumulated to June.
| Sales | Sales | ||
|---|---|---|---|
| 1st Half | 1st Half | Var. % | |
| Product | year 2013 | year 2014 | 2014/2013 |
| Parts/Accessories/Merchandising | 17,139 | 16,184 | -5.60% |
| Extracare/Total Assistance | |||
| Services | 326 | 329 | 0.90% |
| Total | 17,465 | 16,513 | -5.50% |
After Sales Division turnover for the first half of 2014 was 16 million Euros, resulting from parts, accessories and merchandising. The amount represents a 5.6% decrease compared to the first half of 2013.
Regarding invoicing for Extracare and Total Assistance services, a growth of 0.9% was registered compared to the first half of 2013.
However, we would like to emphasise that the global behaviour of after sales area for the period under review was more positive than the expected, in view of the drop in 'assistable' vehicle registered within the past few of years.
Despite the recovery in vehicle sales registered on the first half of 2014, other factors as the reduction and ageing of car fleet and the reduction in vehicles' average mileage, are adverse to the development of the automotive branch's After Sales.
In a context where the automotive market is especially touched, TCAP kept its commitment to boost programmes, which contradict the results of this unfavourable economic environment.
We highlight some of the measures taken, towards making After Sales business more dynamic.
The Client Retention Campaign '5+ Plan' -. was continued. This campaign had already been in place in the previous year, with special prices for oil and filter changes and other offers.
Updating of notices. On service notices, the client is informed about the price of the following maintenance, and is informed of customised services and accessories' suggestions for each vehicle. Proactive contacts for scheduling services are also carried out.
2014 is seen as the year in which national automotive market begins its recovery and Caetano Auto operation follows this trend. This enables to register improvements already in the 1st half of 2014 compared to the same period in the previous year.
Turnover for this 1st half-year is thus over 78 million Euros against 69 million for the previous year. In turn, between new and used vehicles, Caetano Auto sold in this first half of the year 4,056 units against 3,455 in the same period in the previous year (17.4% more).
In what concerns costs, the careful management of all Company costs and despite the growth registered in sales, enabled to even register reductions in costs compared to the previous year, as was the case for External Supplies and Services which were reduced in more than 4% when compared to the 1st half in 2013.
As for depreciation and amortisation, they continue to represent more than 1 million Euros, against assets held, mainly real estate, having a significant influence on income obtained.
Caetano Auto thus registered for the 1st half of 2014, in individual terms, a negative income before taxes of about 378 thousand Euros, against 483 thousand Euros, also negative, reached in the same period in 2013.
Finally, a note for the fact that the amounts indicated herein as pertaining to the previous year concern the sum of the amounts obtained individually by the companies Caetano Auto, Auto Partner, Caetano Colisão (Norte), Caetano Retail (Norte) II SGPS and Cais B, all merged with Caetano Auto as at 30 December 2013, with effects from 1 January , 2013.
Activity indicators provided by Instituto Nacional de Estatística (Statistics Institute) in Cape Verde, point out to a slowdown in private consumption throughout the past few months, as well as in investment, resulting from the decrease in goods imports.
The drop in private consumption is mainly noted at the level of durable consumer goods. For imports of investment goods reduction is felt in capital goods and transport equipment, with direct impact on the main business of this Company.
In addition, one of the relevant and significant facts for the companies' business was the restriction of access to credit imposed by Banco de Cabo Verde (Cape Verde Bank). The increase in proportion of bad debts within total loans granted to private consumers meant the measures adopted by Banco de Cabo Verde towards preserving the financial soundness of the commercial banks.
All of these factors decisively contributed to the reduction in performance obtained in this first half of 2014.
However, by means of strict management measures and a well-planned internal restructuring, it was possible not only to overcome the above-mentioned constraints but also to promote some increase in the commercial activity, which was determinant for the Company's economic and financial balance.
| 2014 | 2013 | Variation | ||
|---|---|---|---|---|
| 1st Half‐ | 1st Half‐ | |||
| MARKET | MAKE | year | year | Qty |
| Toyota | 37 | 10 | 27 | |
| Light Passenger Vehicles |
Daihatsu | 0 | 3 | ‐3 |
| Light Commercial Vehicles |
Toyota | 45 | 48 | ‐3 |
| Heavy Commercial Vehicles |
Toyota | 46 | 32 | 14 |
| 128 | 93 | 35 |
The models having a more significant impact on the positive difference were the following:
Hiace (+17 Units), followed by Yaris (+9 Units) and Rav 4 (+8 Units).
It should also be noted the improvement which was possible to obtain in gross commercialisation margins, both because of better price negotiations with the suppliers and the intrinsic quality of the products which sustained some adjustments of the final price for the consumer.
| 2014 | 2013 | Variation | |
|---|---|---|---|
| 1st Half‐ | |||
| MARKET | 1st Half‐year | year | Qty |
| Parts/Accessories | 71,343,573 | 73,965,751 | ‐2,622,178 |
| Workshop (Labour) |
11,412,137 | 15,764,945 | ‐4,352,808 |
| 82,755,710 | 89,730,696 | ‐6,974,986 | |
(Amounts in EVC)
At the level of After Sales, an increase in sales for mechanics of 2.5% and a decrease for collision of 19.5% were registered. Towards fighting the negative deviation in collision, a Protocol for granting a courtesy vehicle was signed with the Insurance Company Garantia, right after the estimate cost of repair becomes final.
The global reduction registered in after sales is also greatly due to the units in operation, which lowered significantly with the drop in sales of new units registered within the past few years. By lowering the 'assistable' vehicles, the after sales business will suffer in the medium term. This is why, in our understanding, this area will take longer to recover from the crisis in Cape Verde.
The first half-year ended with a Turnover of more than 1.5 million Euros, representing a reduction of about 11.8%, when compared to the same period in the previous year.
This reduction is due to the fact that there was a decrease in the total fleet of the company. Currently, the company fleet consists of 1,226 units, i.e., 11.35% less compared to the first half of last year.
In June 210 units were acquired for RACs segment, the impact of which in Turnover will only have effects in the next half of the year.
We have good perspectives for the second half of the year, as the sale of about 560 RAC's vehicles is expected. This sale will give rise to significant gains, which will contribute in a positive way to the company's final income.
During the second quarter of 2014, there were no changes in the Toyota Caetano Portugal's Group of companies and so, by this date, and compared to the previous year, the perimeter variation is restricted to the one disclosed when submitting information for this year's first quarter, namely the exit of the Movicargo company, a corporation which reported no operational activity, and still the dissolution of Caetano Components.
As the Group Toyota Caetano Portugal is mainly focused on the automotive sector, the positive performance of this market, which grew about 41% in the first half of the year, maximised the increase of the Group's activity. So, one reached a consolidated turnover of approximately 127 million euros, representing an increase of 19% when compared to the same period of 2013, with all subsidiaries contributing positively to the value achieved, even though their relative weight presents a slight contraction of Caetano Auto as opposite to a greater preponderance of the parent company.
This situation finds its main justification in the excellent performance of sales and after sale services of forklifts that, with a turnover of approximately 5.5 million euros, grow 72% over the value achieved in the same period of 2013.
The effective increase in activity reported in the semester under review was not accompanied by the maintenance of the gross margin, having recorded a reduction in about 3 percentage points over the same period of 2013, even though the drop may be justified by the change of product mix traded, particularly with the increase in car sales. Consequently, it was possible to obtain a consolidated EBITDA of around 8.6 million euros (6.8% of turnover), higher than that obtained in 2013 in approximately 1.4 million euros.
The behaviour of cost factors, taking into account the growth of turnover, was positive, with special focus on reducing the heading External Supplies and Services, in about 1.2 million euros.
The consolidated operating profit of 2.9 million euros show a marked improvement when compared to the value assessed in 2013, which stood close to the breakeven point. This aggregate includes charges with amortizations and depreciations of 5.7 million euros, lower than those reported in previous years and result of some divestment in tangible fixed assets.
With a net debt of 27 million euros, the Group generated a negative financial result of 586 thousand euros, 42% lower than in 2013, in which it incorporated a negative financial result of 1 million euros, with a net debt of 22 million euros. In face of the increased debt, directly related to the increased activity, the positive evolution of the heading Financial Results was possible thanks to the negotiating capacity with financial providers with a view to obtaining a better funding price, as well as the effective management of more attractive funding lines.
Thus, the Group closed the first half of 2014 with a profit before tax of about 2.3 million euros, while in 2013, within the same period, it incurred in losses of 644 thousand euros, the result of a general improvement in the activity and lower financial costs borne.
The degree of financial autonomy of 58% continues to evidence of the stability of the capital structure.
By way of summary, below is a panel of aggregates capable of identifying the Group Toyota Caetano Portugal's steering of evolution, having as currency unit the thousands of euros.
| Jun '13 | Jun '14 | Change | |
|---|---|---|---|
| Turnover | 107.467 | 127.349 | 18,5% |
| Gross Profits | 25.747 | 26.924 | 4,6% |
| % (f) Sales | 24,0% | 21,1% | |
| External Supplies and Services | 17.008 | 15.835 | ‐6,9% |
| % (f) Sales | 15,8% | 12,4% | |
| Payroll Expenses | 18.275 | 18.988 | 3,9% |
| % (f) sales | 17,0% | 14,9% | |
| E.B.I.T.D.A. | 7.162 | 8.601 | 20,1% |
| % (f) sales | 6,7% | 6,8% | |
| Operational Income | 366 | 2.851 | 679,2% |
| % (f) Sales | 0,3% | 2,2% | |
| Financial Results | ‐1.010 | ‐586 | 42,0% |
| % (f) Sales | ‐0,9% | ‐0,5% | |
| Gross Cash Flow | 6.242 | 7.294 | 16,8% |
| % (f) sales | 5,8% | 5,7% | |
| Consolidated Net profit | ‐998 | 1.806 | 280,9% |
| % (f) sales | ‐0,9% | 1,4% | |
| Net Financial Debt | 21.753 | 26.888 | 23,6% |
| Degree of Financial Autonomy | 61,5% | 58,2% |
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, 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 minimise 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
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 unfavourable 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 programmes 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 2014 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 2014, 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, 28 August 2014
The Board of Directors
José Reis da Silva Ramos - Chairman Maria Angelina Martins Caetano Ramos Salvador Acácio Martins Caetano Miguel Pedro Caetano Ramos Takeshi Numa Daniele Schillaci Rui Manuel Machado de Noronha Mendes
(Under the provisions laid down in article 447 of Código das Sociedades Comerciais (Portuguese Securities Code) and according to article 9 (b) and article 14 (7), both from Regulation 5/2008 of CMVM)
JOSÉ REIS DA SILVA RAMOS (Chairman of the Board of Directors): Has no shares or obligations. GRUPO SALVADOR CAETANO, SGPS, S.A., in which he is a Member of the Board of Directors, had no transactions, and so as at 30 June 2014, he held 21,288,281 shares, each one with the nominal value of one Euro. FUNDAÇÃO SALVADOR CAETANO, in which he is Chairman of the Board of Directors, had no transactions, and so as at 30 June 2014, he held 138,832 shares, each one with the nominal value of one Euro. COVIM - Sociedade Agrícola, Silvícola e Imobiliária , S.A., in which his spouse is Chairman of the Board of Directors, had no transactions, and so as at 30 June 2014, he held 393,252 shares, each one with the nominal value of one Euro. COCIGA - Construções Civis de Gaia, S.A., in which his spouse is Chairman of the Board of Directors, had no transactions, and so as at 30 June 2014, he held 290 shares, each one with the nominal value of one Euro.
MARIA ANGELINA MARTINS CAETANO RAMOS (Member of the Board of Directors): Has no shares or obligations. GRUPO SALVADOR CAETANO, SGPS, S.A., in which she is Vice-President of the Board of Directors, had no transactions, and so as at 30 June 2014, she held 21,288,281 shares, each one with the nominal value of one Euro.
FUNDAÇÃO SALVADOR CAETANO, in which her spouse is Chairman of the Board of Directors, had no transactions, and so as at 30 June 2014, she held 138,832 shares, each one with the nominal value of one Euro. COVIM - Sociedade Agrícola, Silvícola e Imobiliária , S.A., in which she is Chairman of the Board of Directors, had no transactions, and so as at 30 June 2014, she held 393,252 shares, each one with the nominal value of one Euro. COCIGA - Construções Civis de Gaia, S.A., in which she is Chairman of the Board of Directors, had no transactions, and so as at 30 June 2014, she held 290 shares, each one with the nominal value of one Euro.
SALVADOR ACÁCIO MARTINS CAETANO (Member of the Board of Directors): Has no shares or obligations. GRUPO SALVADOR CAETANO, SGPS, S.A., in which he is Chairman of the Board of Directors, had no transactions, and so as at 30 June 2014, he held 21,288,281 shares, each one with the nominal value of one Euro. FUNDAÇÃO SALVADOR CAETANO, in which he is a Member of the Board of Directors, had no transactions, and so as at 30 June 2014, he held 138,832 shares, each one with the nominal value of one Euro. COCIGA - Construções Civis de Gaia, S.A., in which he is a Member of the Board of Directors, had no transactions, and so as at 30 June 2014, he held 290 shares, each one with the nominal value of one Euro.
MIGUEL PEDRO CAETANO RAMOS (Member of the Board of Directors): Has no shares or obligations. GRUPO SALVADOR CAETANO, SGPS, S.A., in which he is a Member of the Board of Directors, had no transactions, and so as at 30 June 2014, he held 21,288,281 shares, each one with the nominal value of one Euro.
TAKESHI NUMA (Member of the Board of Directors): Has no shares or obligations.
DANIELE SCHILLACI (Member of the Board of Directors): Has no shares or obligations.
RUI MANUEL MACHADO DE NORONHA MENDES (Member of the Board of Directors): Has no shares or obligations. FUNDAÇÃO SALVADOR CAETANO, in which he is a Member of the Board of Directors, had no transactions, and so as at 30 June 2014, he held 138,832 shares, each one with the nominal value of one Euro.
YOICHO SATO (Alternate Member of the Board of Directors): - Has no shares or obligations.
José Domingos da Silva Fernandes - Has no shares or obligations.
Akito Takami - Has no shares or obligations.
Alberto Luis Lema Mandim - Has no shares or obligations.
Maria Lívia Fernandes Alves (Alternate Member of the Audit Board) - Has no shares or obligations.
Takao Gonno (Alternate Member of the Audit Board) - Has no shares or obligations.
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda., represented by José Pereira Alves, or by José Miguel Dantas Maio Marques - Has no shares or obligations.
| SHAREHOLDERS | Shares | Shares | Shares | Shares |
|---|---|---|---|---|
| Held | Acquired | Sold | Held | |
| As at 31.12.2013 | As at 2014 | As at 2014 | As at 30.06.2014 | |
| TOYOTA MOTOR EUROPE NV/SA | 9,450,000 | -- | -- | 9,450,000 |
| SHAREHOLDERS | Shares | Shares | Shares | Shares |
|---|---|---|---|---|
| Held | Acquired | Sold | Held | |
| As at 31.12.2013 | As at 2014 | As at 2014 | As at 30.06.2014 | |
| GRUPO SALVADOR CAETANO, SGPS, SA | 21,288,281 | -- | -- | 21,288,281 |
| SHAREHOLDER | Shares | % of voting rights |
|---|---|---|
| GRUPO 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 | 30-06-2014 | 31-12-2013 |
|---|---|---|---|
| NON-CURRENT ASSETS | |||
| Goodwill | 7 | 611.997 | 611.997 |
| Intangible Assets | 8 | 510.735 | 584.075 |
| Tangible Fixed Assets | 5 | 80.277.024 | 74.570.014 |
| Investment properties | 6 | 16.696.796 | 16.502.727 |
| Available for sale Investments | 9 | 3.380.035 | 3.341.376 |
| Deferred tax | 14 | 2.554.495 | 2.871.892 |
| Accounts Receivable | 11 | 531.917 | 521.364 |
| Total non-current assets | 104.562.999 | 99.003.445 | |
| CURRENT ASSETS | |||
| Inventories | 10 | 49.204.947 | 43.293.137 |
| Accounts Receivable | 11 | 52.301.609 | 44.361.619 |
| Other Credits | 12 | 6.394.252 | 6.486.025 |
| Public Entities | 20 | 1.923.520 | 7 |
| Other Current Assets | 13 | 2.408.622 | 1.325.550 |
| Cash and cash equivalents | 4 | 8.640.515 | 7.676.781 |
| Total current assets | 120.873.465 | 103.143.119 | |
| Total assets | 225.436.464 | 202.146.564 | |
| SHAREHOLDERS' EQUITY & LIABILITIES | |||
| EQUITY | |||
| Share capital | 15 | 35.000.000 | 35.000.000 |
| Legal Reserve | 15 | 7.498.903 | 7.498.903 |
| Revaluation reserves | 15 | 6.195.184 | 6.195.184 |
| Translation reserves | 15 | (1.695.238) | (1.695.238) |
| Fair value reserves | 15 | 299.352 | 260.693 |
| Other Reserve | 80.495.016 | 80.429.549 | |
| Net Income | 1.811.382 | 60.656 | |
| 129.604.599 | 127.749.747 | ||
| Non-controlled Interests | 16 | 1.639.507 | 1.646.250 |
| Total equity | 131.244.106 | 129.395.997 | |
| LIABILITIES: NON-CURRENT LIABILITIES |
|||
| Loans | 17 | 14.117.487 | 13.135.539 |
| Provisions | 23 | 310.712 | 323.424 |
| Deferred tax | 14 | 2.089.843 | 2.089.843 |
| Total non-current liabilities | 16.518.042 | 15.548.806 | |
| CURRENT LIABILITIES | |||
| Loans | 17 | 21.410.879 | 13.586.846 |
| Accounts Payable | 18 | 30.464.290 | 22.792.534 |
| Other Creditors | 19 | 1.168.183 | 1.619.969 |
| Public Entities | 20 | 7.068.825 | 5.067.123 |
| Other current liabilities | 21 | 17.398.465 | 14.015.767 |
| Derivative financial instruments | 24 | 163.674 | 119.522 |
| Total current liabilities | 77.674.316 | 57.201.761 | |
| Total liabilities | 5 | 94.192.358 | 72.750.567 |
| Total liabilities and shareholder' equity | 225.436.464 | 202.146.564 | |
The notes to the financial statements integrates this statement for the period ending at 30 June 2014.
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 TAKESHI NUMA DANIELE SCHILLACI RUI MANUEL MACHADO DE NORONHA MENDES
| 01-04 a 30-06-2014 | 01-04 a 30-06-2013 | ||||
|---|---|---|---|---|---|
| Notes | 30-06-2014 | (Non Audit) | 30-06-2013 | (Non Audit) | |
| Operational Income: | |||||
| Sales | 26 | 118.070.724 | 65.131.908 | 98.691.430 | 53.840.273 |
| Service Rendered | 26 | 9.278.335 | 4.646.257 | 8.775.797 | 4.423.208 |
| Other Operating Income | 29 | 16.255.041 | 8.762.962 | 16.841.971 | 8.177.714 |
| Variation of Products | 10 | 1.687.497 145.291.597 |
1.014.949 79.556.076 |
705.030 125.014.228 |
389.812 66.831.007 |
| Operational Costs: | |||||
| Cost of sales | 10 | (100.425.033) | (57.527.536) | (81.720.169) | (45.087.454) |
| External Supplies and Services | 27 | (15.834.608) | (7.011.744) | (17.008.440) | (8.871.378) |
| Payroll Expenses | 28 | (18.987.907) | (9.850.159) | (18.274.762) | (9.359.203) |
| Depreciations and Amortizations | 5, 6 and 8 | (5.749.675) | (3.022.034) | (6.796.289) | (3.472.422) |
| Provisions and Impairment loss | 23 | (493.389) | (192.203) | 126.539 | 160.725 |
| Other Operating expenses | 29 | (949.695) | (512.768) | (975.160) | (421.261) |
| (142.440.307) | (78.116.444) | (124.648.281) | (67.050.993) | ||
| Operational Income | 2.851.290 | 1.439.632 | 365.947 | (219.986) | |
| Finance costs | 30 | (698.463) | (365.349) | (1.499.913) | (679.115) |
| Finance Income | 30 | 112.649 | 53.540 | 489.981 | 244.696 |
| Profit before taxation from continuing operations | 2.265.476 | 1.127.823 | (643.985) | (654.405) | |
| Income tax for the year | 25 | (459.308) | (29.333) | (354.199) | (127.776) |
| Net profit for the period | 1.806.168 | 1.098.490 | (998.184) | (782.181) | |
| Net profit for the period attributable to: | |||||
| Equity holders of the parent | 1.811.382 | 1.090.340 | (923.092) | (712.260) | |
| Non-controlled interest | (5.214) 1.806.168 |
8.150 1.098.490 |
(75.092) (998.184) |
(69.921) (782.181) |
|
| Earnings per share: | |||||
| Basic | 36 | 0,052 | 0,031 | -0,029 | -0,022 |
| Diluted | 36 | 0,052 | 0,031 | -0,029 | -0,022 |
The notes to the financial statements integrates this statement for the period ending at 30 June 2014 .
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 TAKESHI NUMA DANIELE SCHILLACI RUI MANUEL MACHADO DE NORONHA MENDES
FOR THE PERIOD ENDED AT 30 JUNE 2014 AND 2013
(Amounts expressed in Euros)
| Bal at 3 1 o f D mb er 2 012 anc es ece |
Sha re ital cap 35. 000 .00 0 |
Leg al Re ser ves 7.4 98. 903 |
Re luat ion ava Re ser ves 6.1 95. 184 |
Tra nsla tion res erv es (1.6 95. 238 ) |
Fai lue r va res erv es 102 .45 5 |
Oth er Re ser ve 84. 174 4 .77 |
Tot al r ese rve s 96. 276 .07 8 |
Ne t fit pro (2.8 53. 034 ) |
Tot al 128 .42 3.0 44 |
No rolle d ont n-c Inte ts res 812 .34 6 |
Tot al 129 .23 5.3 90 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cha s in the riod nge pe : of Co App lica tion the lida ted Ne t In e 2 012 nso com Ava ilab le f ale Inve s fa ir v alu han stm ent or s e c ges Oth ers Su bto tal |
- - - - |
- - - - |
- - - - |
- - - - |
- 78. 713 - - |
(2.8 ) 53. 034 - 2.3 30 (2.8 ) 50. 704 |
(2.8 ) 53. 034 78. 713 2.3 30 (2.8 ) 50. 704 |
2.8 53. 034 - - 2.8 53. 034 |
- 78. 713 2.3 30 2.3 30 |
- - (3.3 87) (3.3 87) |
- 78. 713 (1.0 57) (1.0 57) |
| Con sol idat ed fit f he iod net or t pro per Con sol idat ed hen sive inc com pre om e |
- | - | - | - | 78. 713 |
- | 78. 713 |
(92 92) 3.0 (92 3.0 92) |
(92 92) 3.0 (84 4.3 79) |
(75 2) .09 (75 .09 2) |
(99 84) 8.1 (91 9.4 71) |
| Bal at 3 0 o f Ju 201 3 anc es ne |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
(1.6 95. 238 ) |
181 .16 8 |
81. 324 .07 0 |
93. 504 .08 7 |
(92 3.0 92) |
127 .58 0.9 95 |
733 .86 7 |
128 .31 4.8 62 |
| Bal at 3 1 o f D mb er 2 013 anc es ece |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
(1.6 95. 238 ) |
260 .69 3 |
80. 429 .54 9 |
92. 689 .09 1 |
60. 656 |
127 .74 9.7 47 |
1.6 46. 250 |
129 .39 5.9 97 |
| Cha s in the riod nge pe : App lica tion of the Co lida ted Ne t In e 2 013 nso com Ava ilab le f ale Inve s fa ir v alu han stm ent or s e c ges Oth ers Su bto tal |
- - - - |
- - - - |
- - - - |
- - - - |
- 38. 659 - - |
60. 656 - 4.8 11 65. 467 |
60. 656 38. 659 4.8 11 65. 467 |
(60 .65 6) - - (60 .65 6) |
- 38. 659 4.8 11 4.8 11 |
- - (1.5 29) (1.5 29) |
- 38. 659 3.2 82 3.2 82 |
| Con sol idat ed fit f he iod net or t pro per Con sol idat ed hen sive inc com pre om e |
- - |
- - |
- - |
- - |
- 38. 659 |
- - |
- 38. 659 |
1.8 11. 382 1.8 11. 382 |
1.8 11. 382 1.8 50. 041 |
(5.2 14) (5.2 14) |
1.8 06. 168 1.8 44. 827 |
| Bal at 3 0 o f Ju 201 4 anc es ne |
35. 000 .00 0 |
7.4 98. 903 |
6.1 95. 184 |
(1.6 95. 238 ) |
299 .35 2 |
80. 495 .01 6 |
92. 793 .21 7 |
1.8 11. 382 |
129 .60 4.5 99 |
1.6 39. 507 |
131 .24 4.1 06 |
The notes to the financial statements integrates this statement for the period ending at 30 June 2014 .
CHARTERED ACCOUNTANT BOARD OF DIRECTORSALEXANDRA MARIA PACHECO GAMA JUNQUEIRA
JOSÉ REIS DA SILVA RAMOS – President MARIA ANGELINA MARTINS CAETANO RAMOSSALVADOR ACÁCIO MARTINS CAETANOMIGUEL PEDRO CAETANO RAMOSTAKESHI NUMADANIELE SCHILLACIRUI MANUEL MACHADO DE NORONHA MENDES
(Amounts expressed in Euros)
| IAS/IFRS 30-06-2014 |
IAS/IFRS 30-06-2013 |
|
|---|---|---|
| Consolidated net profit for the period, including non-controlled interest | 1.806.168 | (998.184) |
| Components of other consolidated comprehensive income, net of tax, that could be recycled by profit and loss: Available for sale Investments fair value changes |
38.659 | 78.713 |
| Consolidated comprehensive income | 1.844.827 | (919.471) |
| Atributable to: Equity holders of the parent company Non-controlled interest |
1.850.041 (5.214) |
(844.379) (75.092) |
The notes to the consolidated financial statments integrates this statement for the period ending at 30 June 2014.
CHARTERED ACCONTANT BOARD OF DIRECTORS ALEXANDRA MARIA PACHECO GAMA JUNQUEIRA JOSÉ REIS DA SILVA RAMOS President
ALEXANDRA MARIA PACHECO GAMA JOSÉ REIS DA SILVA RAMOS – MARIA ANGELINA MARTINS CAETANO RAMOS SALVADOR ACÁCIO MARTINS CAETANO MIGUEL PEDRO CAETANO RAMOS TAKESHI NUMA DANIELE SCHILLACI RUI MANUEL MACHADO DE NORONHA MENDES
| Collections from Customers 118.023.325 Payments to Suppliers (112.480.616) |
|||
|---|---|---|---|
| Payments to Personnel (16.634.313) Operating Flow |
(11.091.604) | 120.111.772 (88.680.875) (15.282.519) |
16.148.378 |
| Payments of Income Tax Other Collections/Payments Related to Operating Activities |
(321.304) 7.402.022 |
(680.273) (1.703.594) |
|
| Flow in Operating Activities | (4.010.886) | 13.764.511 | |
| INVESTING ACTIVITIES | |||
| Collections from: Investments 408.453 Tangible Fixed Assets 1.731.188 Subsidies 4.074 Interest and Others 46.460 Dividends - |
2.190.175 | - 4.320.490 9.972 66.723 - |
4.397.185 |
| Payments to: Tangible Fixed Assets (2.051.638) Intangible Fixed Assets (14.811) |
(2.066.449) | (3.169.013) (5.000) |
(3.174.013) |
| Flow in Investing Activities | 123.726 | 1.223.172 | |
| FINANCING ACTIVITIES | |||
| Collections from: Loan 7.672.678 |
7.672.678 | 16.437 | 16.437 |
| Payments to: Loan (1.466.409) Lease Down Payments (512.642) Interest and Others (773.439) Dividends (6.240) |
(2.758.730) | (12.293.909) (2.247.188) (1.562.422) |
(7.558) (16.111.077) |
| Flow in Financing Activities | 4.913.948 | (16.094.640) | |
| CASH | |||
| Cash and Cash Equivalents at Beginning of Period (Note 4) Changes in perimeter (Note 5) |
7.676.781 63.054 |
7.507.699 - |
|
| Cash and Cash Equivalents at End of Period (Note 4) | 8.640.515 | 6.400.742 | |
| Net Flow in Cash Equivalents | 1.026.788 | (1.106.957) |
ADMINISTRATIVE MANAGER 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 TAKESHI NUMA DANIELE SCHILLACI RUI MANUEL MACHADO DE NORONHA MEND
Detail of cash and cash equivalents:
| (Euros) | ||
|---|---|---|
| ITEMS | 30-06-2014 | 30-06-2013 |
| Money Bank Deposits at Immediate Disposal Cash Equivalents |
115.781 8.524.158 576 |
152.577 6.246.191 1.974 |
| Cash and Cash Equivalents | 8.640.515 | 6.400.742 |
| AVAILABILITIES AS IN BALANCE SHEET | 8.640.515 | 6.400.742 |
ADMINISTRATIVE MANAGER 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 TAKESHI NUMA DANIELE SCHILLACI RUI MANUEL MACHADO DE NORONHA MENDES
(Amounts in Euros)
Toyota Caetano Portugal, S.A. ("Toyota Caetano" or "Company") was incorporated in 1946, has its headquarters in Vila Nova de Gaia, and is the Parent Company of a Group of companies ("Toyota Caetano Group" or "Group"), which mainly develop economic activities included in the automotive sector, namely the import, assembly and commercialization of vehicles, bus and coach industry, sale and rental of industrial equipment forklifts, sale of vehicles parts, as well as the corresponding technical assistance.
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, 2014, 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.
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, 2013.
Comparative information regarding December 31, 2013, 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, 2014, were adopted by the first time in this period:
a) Standards and interpretations that became effective as of 1 January 2014:
(i) Standards:
IFRIC 21 (new), 'Levies' (effective for annual periods beginning on or after 17 June 2014). Interpretation to IAS 37 and the recognition of a liability, clarifying that the obligation event that gives rise to a liability to pay a levy is the activity described in the relevant legislation that triggers the payment
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, 2014.
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, 2013.
In this context, we presented below some risk indicators as of June 30, 2014, considered particularly relevant:
The Group operates internationally and has a subsidiary operating in Cape Verde. The group selects a functional currency for each subsidiary (Cape Verde Escudo, for the subsidiary Caetano Auto CV, S.A.), corresponding to the currency of the 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, 2014 and December 31, 2013 and June 30, 2013, 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".
| Assets | Liabilities | ||||||
|---|---|---|---|---|---|---|---|
| Jun-14 | Dec-13 | Jun-13 | Jun-14 | Dec-13 | Jun-13 | ||
| Cabo Verde Escudo (CVE) | 6.435.087 | 6.675.943 | 6.812.021 | 680.975 | 946.903 | 1.000.163 | |
| Great Britain pounds (GBP) | 237.229 | 348.887 | 192.976 | - | 545 | - | |
| Swedish kronor (SEK) | 19.932 | 40.849 | 101.618 | - | 2.176 | - | |
| Japanese yen (JPY) | - | - | - | 135.863 | 161.573 | 211.891 | |
| US Dollar (USD) | 201 | - | 10.542 | - | 9.258 | - | |
| Norwegian kroner (NOK) | - | 80.142 | 1.227 | - | - | - | |
| Danish kroner (DKK) | 248.249 | 188.709 | 51.313 | - | - | - | |
The Group's assets and liabilities amounts (expressed in Euros) recorded in a different currency from Euro at June 30, 2014 and December 31, 2013 and June 30, 2013 can be summarized as follows:
| Jun-14 | Dec-13 | ||||
|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | |
| Great Britain pounds (GBP) | 5% | 11.861 | - | 17.417 | - |
| Swedish kronor (SEK) | 5% | 997 | - | 1.934 | - |
| Japanese yen (JPY) | 5% | (6.793) | - | (8.079) | - |
| US Dollar (USD) | 5% | 10 | - | (463) | - |
| Norwegian kroner (NOK) | 5% | - | - | 4.007 | - |
| Danish kroner (DKK) | 5% | 12.412 | - | 9.435 | - |
The sensitivity of the Group to foreign exchange rate changes can be summarized as follows (increases/decreases):
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 2014 and 2013, the Group has been exposed to the risk of variation of 'available for sale assets' prices. At June 30, 2014 and December 31, 2013 and June 30, 2013, 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-14 | Dec-13 | Jun-13 | |||||
|---|---|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | Net Income | Equity | |
| CIMOVEL FUND | 10% | - | 331.330 | - | 327.464 | - | 319.511 |
| CIMOVEL FUND | -10% | - | (331.330) | - | (327.464) | - | (319.511) |
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.
(Amounts in Euros)
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-14 | Dec-13 | Jun-13 | |||||
|---|---|---|---|---|---|---|---|
| Variation | Net Income | Equity | Net Income | Equity | Net Income | Equity | |
| Loans- Mutual Contract | 1 p.p | 88.158 | - | 97.368 | - | 106.579 | - |
| Guaranteed account | 1 p.p | 100.000 | - | 100.000 | - | 100.000 | - |
| Bank Credits | 1 p.p | 204 | - | - | - | 1.777 | - |
| Commercial Paper | 1 p.p | 74.000 | - | - | - | - | - |
| Total | 262.362 | - | 197.368 | - | 208.356 | - | |
| Loans- Mutual Contract | (1 p.p) | (88.158) | - | (97.368) | - | (106.579) | - |
| Guaranteed account | (1 p.p) | (100.000) | - | (100.000) | - | (100.000) | - |
| Bank Credits | (1 p.p) | (204) | - | - | - | (1.777) | - |
| Commercial Paper | (1 p.p) | (74.000) | - | - | - | - | - |
| Total | (262.362) | - | (197.368) | - | (208.356) | - | |
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, 2014 and 31 December, 2013, the Group presents a net debt of 26.887.851 Euros and 19.045.604 Euros, respectively, divided between current and non current loans (Note 17) and cash and cash equivalents (Note 4), agreed with the different financial institutions.
The main objective of the Board is to assure the continuity of the operations, providing an adequate remuneration to shareholders and the correspondent benefits to the rest of the stakeholders of the company.
(Amounts in Euros)
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 monitorized through the financial leverage ratio, defined as net debt/(net debt + equity).
| Jun-14 | Dec-13 | Jun-13 | |
|---|---|---|---|
| Debt | 35.528.366 | 26.722.385 | 28.153.597 |
| Cash and Cash Equivalents | 8.640.515 | 7.676.781 | 6.400.742 |
| Net Debt | 26.887.851 | 19.045.604 | 21.752.855 |
| Equity | 131.244.106 | 129.395.996 | 128.314.862 |
| Leverage Ratio | 17,0% | 12,8% | 14,5% |
The gearing remains between acceptable levels, as established by management.
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, 2013, 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, 2014 and 2013 are stated in Note 23.
At June 30, 2014, 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.
(Amounts in Euros)
Exchange rates used in the conversion of foreign affiliated companies, as of June 30, 2014 and December 31, 2013 were as follows:
| 30-06-2014 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Currency | Final Exchange Rate for Jun-14 |
Average Exchange Rate for Jun-14 |
Exchange Rate at the Date of Incorporation |
Final Exchange rate for 2013 |
||||
| Caetano Auto CV, S.A. | CVE | 0,009069 | 0,009069 | 0,009069 | 0,009069 | |||
| Captions | Balance Sheet except Shareholders |
Income Statement | Share Capital | Retained Earnings |
| 31-12-2013 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Currency | Final Exchange Rate for Dec-13 |
Average Exchange Rate for Dec-13 |
Exchange Rate at the Date of Incorporation |
Final Exchange rate for 2012 |
|||||
| 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, 2014 and December 31, 2013, are as follows:
| Companies | Effective | |
|---|---|---|
| Percentage Held | ||
| Jun-14 | Dec-13 | |
| Toyota Caetano Portugal, SA | Parent Company | |
| Saltano - Investimentos e Gestão (SGPS), SA | 99,98% | 99,98% |
| Caetano Auto CV, SA | 81,24% | 81,24% |
| Caetano Renting, SA | 99,98% | 99,98% |
| Caetano - Auto, SA | 98,40% | 98,39% |
| Movicargo - Movimentação Industrial, Lda. | - | 100,00% |
These subsidiaries were included in the consolidated financial statements using the full consolidation method, as established in IAS 27 – "Consolidated and Separate Financial Statements" (subsidiary control through the major voting rights or other method, being owner of the company's share capital).
During the six-month period, there was a change in the composition of the Group Toyota Caetano Portugal, derived from the sale of Movicargo – Movimentação Industrial, Lda.
(Amounts in Euros)
As of June 30, 2014, December 31, 2013 and June 30, 2013 cash and cash equivalents detail was the following:
| Jun-14 | Dec-13 | Jun-13 | |
|---|---|---|---|
| Cash | 115.781 | 118.683 | 152.577 |
| Bank Deposits | 8.524.158 | 7.556.847 | 6.246.191 |
| Cash equivalents | 576 | 1.251 | 1.974 |
| 8.640.515 | 7.676.781 | 6.400.742 | |
The Company and its affiliates have available credit facilities as of June 30, 2014 amounting to approximately 68 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.
During the six month period ended as of June 30, 2014 and 2013, the movement in tangible fixed assets, as well as in the respective accumulated depreciation and accumulated impairment losses, was as follows:
| 30-06-2014 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Land | Buildings and Other Constructions |
Machinery and Equipment |
Transport Equipment |
Administrative Equipment |
Other Fixed Assets |
Tangible assets in Progress |
Total | |
| Gross Assets: | ||||||||
| Opening Balances | 16.867.925 | 91.144.133 | 57.516.232 | 43.398.838 | 7.546.027 | 4.167.209 | 2.379.299 | 223.019.663 |
| Additions | - | 264.675 | 59.463 | 15.357.802 | 33.105 | 33.069 | 1.383.992 | 17.132.106 |
| Disposals | - | (440.860) | (2.805) | (8.282.527) | - | - | - | (8.726.192) |
| Transfer and Write-offs | (121.830) | (925.388) | 223.343 | - | - | - | (328.775) | (1.152.650) |
| Ending Balances | 16.746.095 | 90.042.560 | 57.796.233 | 50.474.113 | 7.579.132 | 4.200.278 | 3.434.516 | 230.272.927 |
| Accumulated Depreciation and Impairment losses: |
||||||||
| Opening Balances | - | 58.171.836 | 53.041.445 | 26.102.086 | 7.275.882 | 3.858.400 | - | 148.449.649 |
| Depreciations | - | 1.156.703 | 518.943 | 3.575.999 | 56.064 | 72.964 | - | 5.380.673 |
| Disposals | - | (435.569) | 104 | (2.727.223) | 9 | - | - | (3.162.679) |
| Transfer and Write-offs | - | (671.740) | - | - | - | - | - | (671.740) |
| Ending Balances | - | 58.221.230 | 53.560.492 | 26.950.862 | 7.331.955 | 3.931.364 | - | 149.995.903 |
| Net Tangible Assets | 16.746.095 | 31.821.330 | 4.235.741 | 23.523.251 | 247.177 | 268.914 | 3.434.516 | 80.227.024 |
(Amounts in Euros)
| 30-06-2013 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Land | Buildings and Other Constructions |
Machinery and Equipment |
Transport Equipment |
Administrative Equipment |
Other Fixed Assets |
Tangible assets in Progress |
Total | |
| Gross Assets: | ||||||||
| Opening Balances | 16.637.519 | 92.320.133 | 59.550.699 | 48.497.032 | 7.691.874 | 4.085.013 | 2.435.357 | 231.217.627 |
| Additions | 48.907 | 31.337 | 171.682 | 9.298.558 | 13.729 | 22.243 | 261.624 | 9.848.080 |
| Disposals | (54.560) | (328.040) | (359.342) | (6.442.857) | (19.280) | (71.202) | - | (7.275.281) |
| Transfer and Write-offs | 903.473 | - | (159.820) | - | - | 159.820 | (903.473) | - |
| Ending Balances | 17.535.339 | 92.023.430 | 59.203.219 | 51.352.733 | 7.686.323 | 4.195.874 | 1.793.508 | 233.790.426 |
| Accumulated Depreciation and Impairment losses: |
||||||||
| Opening Balances | - | 57.824.400 | 53.876.907 | 25.042.359 | 7.343.297 | 3.663.815 | - | 147.750.778 |
| Depreciations | - | 1.212.906 | 824.420 | 4.273.044 | 65.248 | 83.788 | - | 6.459.406 |
| Transfer and Write-offs | - | (325.827) | (487.732) | (2.862.255) | (19.280) | 57.445 | - | (3.637.649) |
| Ending Balances | - | 58.711.479 | 54.213.595 | 26.453.148 | 7.389.265 | 3.805.048 | - | 150.572.535 |
| Net Tangible Assets | 17.535.339 | 33.311.951 | 4.989.624 | 24.899.585 | 297.058 | 390.826 | 1.793.508 | 83.217.891 |
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.
As of December 31, 2013, the group has hired a specialized independent entity in order to determine the fair value of some of their Fixed Tangible Assets for which, according to internal and external factors, exhibit impairments signs.
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, 2014 and December 31, 2013, the assets acquired through financial leases are presented as follows:
| Jun-14 | |||
|---|---|---|---|
| Gross Value | Accumulated Depreciations |
Net Value | |
| Fixed Tangible Assets | 14.034.646 | 3.491.525 | 10.543.121 |
| Dec-13 | |||
|---|---|---|---|
| Gross Value | Accumulated Depreciations |
Net Value | |
| Fixed Tangible Assets | 11.869.238 | 3.993.422 | 7.875.816 |
(Amounts in Euros)
As of June 30, 2014, December 31, 2013 and June 30, 2013, 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 1.501.319 Euros as the six month period ended as of June 30, 2014 (1.344.872 Euros as of June 30, 2013) (note 29).
Additionally, in accordance with external appraisals made by independent experts, with reference to December 31, 2012, and in accordance with evaluation criteria usually accepted for real estate markets, the fair value of those investment properties amounts to, approximately, 47 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, 2014, December 31, 2013 and June 30, 2013 is made up as follows:
| Jun-14 | Dec-13 | Jun-13 | |||||
|---|---|---|---|---|---|---|---|
| Building | Local | Net accounting value |
Fair Value | Net accounting value |
Fair Value | Net accounting value |
Fair Value |
| Industrial facilities | V.N. Gaia | 1.340.010 | 9.048.000 | 1.398.655 | 9.048.000 | 806.092 | 9.048.000 |
| Industrial facilities | Carregado | 6.049.916 | 23.828.000 | 6.096.935 | 23.828.000 | 6.143.955 | 20.928.000 |
| Industrial Warehouse | V.N. Gaia | 1.198.613 | 6.003.000 | 1.324.087 | 6.003.000 | 1.301.855 | 6.003.000 |
| Commercial facilities | Several places | 2.861.761 | 6.549.400 | 2.617.542 | 6.549.400 | 2.719.943 | 5.335.400 |
| Land not in use | Several places | 3.525.476 | 4.339.000 | 3.525.476 | 4.339.000 | 3.505.492 | 4.446.000 |
| Land | Porto | 121.830 | - | - | - | - | - |
| Others | 1.599.189 | 3.200.000 | 1.540.030 | 3.200.000 | 1.273.453 | 1.247.000 | |
| 16.696.796 | 52.967.400 | 16.502.727 | 52.967.400 | 15.750.790 | 47.007.400 | ||
The investment properties fair value disclosed in 2013 was determined by property valuation by independents appraisers (Market Method, Cost Method, Return Method and Use Method models).
Additionally, as a result of all internal assessments prepared by the Company at December 31, 2013 for the remaining properties and given the generalized inexistence of major works in 2013, the inexistence of relevant claims in 2013 and the inexistence of properties in areas of accelerated degradation, the Management believes will not have been significant changes to the fair value of these buildings in 2013, believing they are still valid and current values of the last external evaluation carried out in 2012.
A of June 30, 2014 the values of the evaluation will be published at December 31, 2013 on the grounds that, given the generalized inexistence of major works in 2014, the inexistence of relevant claims in 2014 and the inexistence of properties in areas of accelerated degradation there will be no significant change to the fair value of these properties.
The movement in the caption "Investment properties" as of June 30, 2014 and 2013 was as follows:
| 30-06-2014 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Gross Assets | Land | Buildings | Total | |||||
| Opening Balances | 9.879.302 | 34.996.495 | 44.875.797 | |||||
| Transfer and Write-offs | 121.830 | 1.030.819 | 1.152.648 | |||||
| Disposals | - | (48.471) | (48.471) | |||||
| Ending Balances | 10.001.131 | 35.978.843 | 45.979.974 | |||||
(Amounts in Euros)
| Accumulated Depreciation | Land | Buildings | Total |
|---|---|---|---|
| Opening Balances | - | 28.373.070 | 28.373.070 |
| Additions | - | 286.839 | 286.839 |
| Disposals | - | (48.471) | (48.471) |
| Transfer and Write-offs | - | 671.740 | 671.740 |
| Ending Balances | - | 29.283.178 | 29.283.178 |
| Accumulated Depreciation | Land | Buildings | Total | |
|---|---|---|---|---|
| Opening Balances | - | 25.331.784 | 25.331.784 | |
| Additions | - | 251.801 | 251.801 | |
| Transfer and Write-offs | - | (49.104) | (49.104) | |
| Ending Balances | - | 25.534.481 | 25.534.481 | |
The transfer occurred in 2014 due to the reclassification of tangible assets to investment properties, that are leased.
At June 30, 2014 and 2013 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.
During the six month period ended as of June 30, 2014 and 2013, the movement in intangible assets, as well as in the respective accumulated depreciation and accumulated impairment losses, was as follows:
| 30-06-2014 | |||||
|---|---|---|---|---|---|
| Industrial Property |
Goodwill | Computer Programs |
Intangible assets in progress |
Total | |
| Gross Assets: | |||||
| Opening Balances | 140.816 | 81.485 | 1.868.422 | 12.374 | 2.103.097 |
| Additions | - | - | - | 14.811 | 14.811 |
| Transfer and Write-offs | - | - | - | (6.187) | (6.187) |
| Ending Balances | 140.816 | 81.485 | 1.868.422 | 20.998 | 2.111.721 |
| Accumulated Depreciation and Impairment losses: |
|||||
| Opening Balances | 117.328 | 81.485 | 1.320.209 | - | 1.519.022 |
| Depreciations | 11.648 | - | 70.515 | - | 82.163 |
| Transfer and Write-offs | (196) | - | (3) | - | (199) |
| Ending Balances | 128.780 | 81.485 | 1.390.721 | - | 1.600.986 |
| Net Intangible Assets | 12.036 | - | 477.701 | 20.998 | 510.735 |
(Amounts in Euros)
| 30-06-2013 | |||||
|---|---|---|---|---|---|
| Industrial Property |
Goodwill | Computer Programs |
Intangible assets in progress |
Total | |
| Gross Assets: | |||||
| Opening Balances | 140.817 | 81.485 | 2.016.656 | 1.188 | 2.240.146 |
| Additions | - | - | 5.000 | 12.373 | 17.373 |
| Ending Balances | 140.817 | 81.485 | 2.021.656 | 13.561 | 2.257.519 |
| Accumulated Depreciation and Impairment losses: |
|||||
| Opening Balances | 94.423 | 81.485 | 1.328.389 | - | 1.504.297 |
| Depreciations | 11.648 | - | 73.434 | - | 85.082 |
| Transfer and Write-offs | (194) | - | (1.466) | - | (1.660) |
| Ending Balances | 105.877 | 81.485 | 1.400.357 | - | 1.587.719 |
| Net Intangible Assets | 34.940 | - | 621.299 | 13.561 | 669.800 |
During the period ended as of June 30, 2014, and December 31, 2013 and June 30, 2013 the movements in item "Investments available for sale" were as follows:
| Non-current assets | ||||
|---|---|---|---|---|
| Jun-14 | Dec-13 | Jun-13 | ||
| Available for sale Investments | ||||
| Fair value at January 1 | 3.341.376 | 3.181.038 | 3.181.038 | |
| Acquisitions during the semester | - | 2.100 | - | |
| Increase/(decrease) in fair value | 38.659 | 158.238 | 78.713 | |
| Fair value at the date of reference | 3.380.035 | 3.341.376 | 3.259.751 | |
As of June 30, 2014, 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, 2014 and 2013 from recording "Investments held for sale" at fair value can be summarized as follows:
| Jun-14 | Jun-13 | |
|---|---|---|
| Increase in fair value | 38.659 | 78.713 |
| 38.659 | 78.713 |
(Amounts in Euros)
As of June 30, 2014, December 31, 2013 and June 30, 2013, this caption breakdown is as follows:
| Jun-14 | Dec-13 | Jun-13 | |
|---|---|---|---|
| Raw and subsidiary Materials | 4.186.945 | 2.634.224 | 5.783.511 |
| Production in Process | 928.698 | 560.642 | 1.548.657 |
| Finished and semi-finished Products | 1.987.870 | 668.429 | 3.738.362 |
| Merchandise | 43.731.718 | 40.766.744 | 31.542.855 |
| 50.835.231 | 44.630.039 | 42.613.385 | |
| Accumulated impairment losses in inventories (Note 23) | (1.630.284) | (1.336.902) | (1.593.922) |
| 49.204.947 | 43.293.127 | 41.019.463 | |
During the six month period ended as of June 30, 2014 and 2013, cost of sales was as follows:
| Jun-14 | Jun-13 | |||||
|---|---|---|---|---|---|---|
| Merchandise | Raw and subsidiary Materials |
Total | Merchandise | Raw and subsidiary Materials |
Total | |
| Opening Balances | 40.766.744 | 2.634.224 | 43.400.968 | 36.870.898 | 5.149.542 | 42.020.440 |
| Net Purchases | 91.958.334 | 12.984.394 | 104.942.728 | 69.085.631 | 7.940.464 | 77.026.095 |
| Ending Balances | (43.731.718) | (4.186.945) | (47.918.663) | (31.542.855) | (5.783.511) | (37.326.366) |
| Total | 88.993.360 | 11.431.673 | 100.425.033 | 74.413.674 | 7.306.495 | 81.720.169 |
During the six month period ended as of June 30, 2014 and 2013, the variation in production was computed as follows:
| Finished and semi-finished products | |||
|---|---|---|---|
| Jun-14 | Jun-13 | ||
| Ending Balances | 2.916.568 | 5.287.019 | |
| Inventories adjustments | - | (1.484) | |
| Opening Balances | (1.229.071) | (4.580.505) | |
| Total | 1.687.497 | 705.030 | |
As of June 30, 2014, December 31, 2013 and June 30, 2013, the detail of this caption was as follows:
| CURRENT ASSEST | NON-CURRENT ASSETS | |||||
|---|---|---|---|---|---|---|
| Jun-14 | Dec-13 | Jun-13 | Jun-14 | Dec-13 | Jun-13 | |
| Customers, current accounts | 52.072.881 | 44.132.891 | 44.597.913 | 531.917 | 521.364 | 101.435 |
| Customers, notes receivable | - | - | 10.855 | - | - | - |
| Doubtful Accounts Receivable | 10.822.022 | 10.863.083 | 9.879.457 | - | - | - |
| 62.894.903 | 54.995.974 | 54.488.225 | 531.917 | 521.364 | 101.435 | |
| Accumulated impairment losses in accounts | ||||||
| Receivable (Note 23) | (10.593.294) | (10.634.355) | (11.880.914) | - | - | - |
| 52.301.609 | 44.361.619 | 42.607.311 | 531.917 | 521.364 | 101.435 | |
(Amounts in Euros)
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
| 30-06-2014 | ||||||||
|---|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||||
| Accounts receivable | 28.991.508 | 2.360.925 | 1.304.356 | 14.262.910 | 46.919.699 | |||
| Personnel | - | 19.146 | 26.727 | 257.844 | 303.717 | |||
| Independent Dealers | 5.073.866 | 161.702 | 106.301 | 39.513 | 5.381.382 | |||
| Total | 34.065.374 | 2.541.773 | 1.437.384 | 14.560.267 | 52.604.798 | |||
| 31-12-2013 | |||||
|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |
| Accounts receivable | 22.710.684 | 1.791.177 | 1.002.193 | 13.191.687 | 38.695.741 |
| Personnel | - | 1.483 | - | 587.690 | 589.173 |
| Independent Dealers | 5.116.939 | 155.514 | 43.191 | 53.697 | 5.369.341 |
| Total | 27.827.623 | 1.948.174 | 1.045.384 | 13.833.074 | 44.654.255 |
| 30-06-2014 | ||||||||
|---|---|---|---|---|---|---|---|---|
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | ||||
| Doubtful Accounts Receivable | - | - | - | 10.822.022 | 10.822.022 | |||
| Total | - | - | - | 10.822.022 | 10.822.022 | |||
| - 60 days | 60-90 days | 90-120 days | + 120 days | Total | |
|---|---|---|---|---|---|
| Doubtful Accounts Receivable | - | - | - | 10.863.083 | 10.863.083 |
| Total | - | - | - | 10.863.083 | 10.863.083 |
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.
(Amounts in Euros)
As of June 30, 2014, December 31, 2013 and June 30, 2013, the detail of this caption was as follows:
| Current Assets | Non-Current Assets | |||||
|---|---|---|---|---|---|---|
| Jun-14 | Dec-13 | Jun-13 | Jun-14 | Dec-13 | Jun-13 | |
| Down Payments to Suppliers | 554.639 | 815.462 | 395.801 | - | - | - |
| Other debtors | 5.839.613 | 5.670.563 | 5.743.199 | - | - | 313.000 |
| 6.394.252 | 6.486.025 | 6.139.000 | - | - | 313.000 | |
The caption "Other credits" includes the amount of, approximately, 3,4 Million Euros (3,4 Million Euros as of December 31, 2012) in referring to advance payments made by the Group related with leasehold improvements in commercial facilities for automotive retail, which were fully invoiced in previous years, being that the remaining amount is expected to be supported in the short term by third parties.
Additionally, this caption includes, as of June 30, 2014, the amount of, approximately, 800.000 Euros (800.000 Euros as of December 31, 2013) to be received from Salvador Caetano Auto África, SGPS, S.A..
Finally, it is noted that this amount also includes an account receivable in the amount of 957.989 Euros from the related party Fundação Salvador Caetano (937.500 Euros on December 31, 2013).
As of June 30, 2014, December 31, 2013 and June 30, 2013, the detail of this caption was as follows:
| Jun-14 | Dec-13 | Jun-13 | |
|---|---|---|---|
| Accrued Income | |||
| Rappel | 489.336 | 263.683 | 100.292 |
| Warranty claims | 199.370 | 249.204 | 359.679 |
| Fleet programs and Bonus suppliers | 281.257 | 140.707 | 600.207 |
| Comissions | 155.434 | 136.274 | 114.041 |
| Interest | 153.211 | 15.245 | 14.820 |
| Assignment of staff | 29.686 | 34.838 | 112.815 |
| Insurance | - | - | 20.521 |
| Fee's | - | 71.057 | 20.777 |
| Others | 267.896 | 106.849 | 230.356 |
| 1.576.190 | 1.017.857 | 1.573.508 | |
| Deferred Expenses | |||
| Insurance | 343.273 | 171.823 | 351.490 |
| Rentals | 90.519 | 67.223 | 64.296 |
| Professional Services | 96.290 | - | - |
| Interest | 10.943 | - | 162.371 |
| Charges on bank guarantees | 772 | - | 13.187 |
| Pension Fund | - | - | 48.745 |
| Others | 290.634 | 68.646 | 266.516 |
| 832.432 | 307.693 | 906.604 | |
| Total | 2.408.622 | 1.325.550 | 2.480.112 |
(Amounts in Euros)
The detail of deferred tax assets and liabilities recorded in the accompanying consolidated financial statements as of June 30, 2014 and 2013 is as follows:
| 30-06-2014 | ||||
|---|---|---|---|---|
| Dec-13 | Profit and Loss Impact |
Equity Impact |
Jun-14 | |
| Deferred tax assets: | ||||
| Provisions not accepted for tax purpose | 447.049 | - | - | 447.049 |
| Tax losses | 1.758.647 | - | - | 1.758.647 |
| Write-off of tangible assets | 615.369 | (329.097) | - | 286.272 |
| Write-off of deferred costs | 6.793 | - | - | 6.793 |
| Derivative financial instruments valuation | 44.033 | 11.700 | - | 55.733 |
| 2.871.892 | (317.397) | - | 2.554.495 | |
| Deferred tax liabilities: | ||||
| Depreciation as a result of legal and free revaluation of fixed assets | (902.133) | - | - | (902.133) |
| Effect of the reinvestments of the surplus in fixed assets sales | (233.602) | - | - | (233.602) |
| Future costs that will not be accepted fiscally | (44.077) | - | - | (44.077) |
| Tax gains according to n.º 7 Artº7 30/G 2000 Portuguese Law | (11.299) | - | - | (11.299) |
| Fair value of fixed assets | (898.732) | - | - | (898.732) |
| (2.089.843) | - | - | (2.089.843) | |
| Net effect ( Note 25 ) | (317.397) | - |
| 30-06-2013 | ||
|---|---|---|
| Dec-12 | Profit and Loss Impact |
Equity Impact |
Jun-13 | |
|---|---|---|---|---|
| Deferred tax assets: | ||||
| Provisions not accepted for tax purpose | 735.612 | - | - | 735.612 |
| Tax losses | 1.825.674 | - | - | 1.825.674 |
| Write-off of tangible assets | 686.150 | 26.807 | - | 712.957 |
| Write-off of deferred costs | 18.521 | - | - | 18.521 |
| Derivative financial instruments valuation | 174.971 | (84.060) | - | 90.911 |
| 3.440.928 | (57.253) | - | 3.383.675 | |
| Deferred tax liabilities: | ||||
| Depreciation as a result of legal and free revaluation of fixed assets | (1.077.444) | - | - | (1.077.444) |
| Effect of the reinvestments of the surplus in fixed assets sales | (310.448) | - | - | (310.448) |
| Future costs that will not be accepted fiscally | (95.267) | - | - | (95.267) |
| Tax gains according to n.º 7 Artº7 30/G 2000 Portuguese Law | (18.334) | - | - | (18.334) |
| Fair value of fixed assets | (997.679) | - | - | (997.679) |
| (2.499.172) | - | - | (2.499.172) | |
| Net effect ( Note 25 ) | (57.253) | - |
(Amounts in Euros)
In accordance with the applicable legislation in Portugal, tax losses can be carried forward for the following periods:
In June 30, 2014 (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:
| Jun-14 | ||||||
|---|---|---|---|---|---|---|
| With Latest date of utilization: | Tax Losses | Deferred tax Assets |
Expiry date | |||
| At 2011 | ||||||
| - Consolidado fiscal Toyota Caetano Portugal | 2.127.585 | 506.297 | 2015 | |||
| At 2012 | ||||||
| - Consolidado fiscal Toyota Caetano Portugal | 5.391.483 | 1.240.039 | 2017 | |||
| At 2013 | ||||||
| - Consolidado fiscal Toyota Caetano Portugal | 53.524 | 12.311 | 2018 | |||
| 7.572.592 | 1.758.647 | |||||
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, 2014 and 2013 tax rates used to compute current and deferred tax assets and liabilities were as follows:
| Tax rates | ||||
|---|---|---|---|---|
| 30.06.2014 | 30.06.2013 | |||
| Country of origin of affiliate: | ||||
| Portugal | 24,5% - 23% | 26,5% - 25% | ||
| 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 2010 and 2013 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.
(Amounts in Euros)
As of June 30, 2014, 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 24 April 2014, no dividends were paid to shareholders.
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 can not be distributed to the share holders, 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.
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, 2014, December 31, 2013 and June 30, 2013 were as follows:
| Jun-14 | Dec-13 | Jun-13 | |
|---|---|---|---|
| Opening Balances as of January 1 | 1.646.250 | 812.346 | 812.346 |
| Acquisition variation of the remaining 50% in Caetano Retail (Norte) II, SGPS, S.A. |
- | 897.056 | - |
| Others | (1.529) | (80) | (3.387) |
| Net profit attributable to Non-controlled Interest | (5.214) | (63.072) | (75.092) |
| 1.639.507 | 1.646.250 | 733.867 | |
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 (SGPS), SA | 0,02% | 4.046 | (3) |
| Caetano Auto CV, SA | 18,76% | 1.087.474 | 4.926 |
| Caetano Renting, SA | 0,02% | 366 | (58) |
| Caetano - Auto, SA | 1,60% | 547.621 | (10.078) |
| 1.639.507 | (5.214) | ||
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 | 52.769.689 | 12.696.942 | 21.484.440 | 1.557.605 |
| Current Assets | 52.990.577 | 3.315.509 | 2.060.513 | 4.877.482 |
| Total Assets | 105.760.266 | 16.012.452 | 23.544.953 | 6.345.087 |
| Non Current Liabilities | 5.187.583 | 200.014 | - | - |
| Current Liabilities | 64.417.461 | 13.727.724 | 3.544.229 | 680.975 |
| Equity | 36.155.222 | 2.084.714 | 20.000.724 | 5.754.112 |
| - | ||||
| Revenues | 78.160.138 | 1.558.593 | - | 3.898.856 |
| Operating Results | (326.361) | (191.785) | (2.248) | 25.099 |
| Financial Results | (51.997) | (101.827) | 69 | (23) |
| Taxes | (136.868) | - | - | - |
| Net Income | (515.226) | (293.611) | (2.179) | 25.076 |
As of June 30, 2014, December 31, 2013 and June 30, 2013 the caption "Loans" was as follows:
| Jun-14 | Dec-13 | Jun-13 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Current | Non-Current | TOTAL | Current | Non-Current | TOTAL | Current | Non-Current | TOTAL | |
| Bank Loan | 19.242.105 | 6.973.683 | 26.215.788 | 11.842.105 | 7.894.737 | 19.736.842 | 11.842.105 | 8.815.790 | 20.657.895 |
| Finance Leases | 1.603.046 | 7.143.804 | 8.746.850 | 1.199.385 | 4.968.124 | 6.167.509 | 1.194.568 | 4.824.496 | 6.019.064 |
| Bank Overdrafts | 20.372 | - | 20.372 | - | - | - | 177.658 | - | 177.658 |
| Other Loans | 545.356 | - | 545.356 | 545.356 | 272.678 | 818.034 | 628.689 | 670.291 | 1.298.980 |
| 21.410.879 | 14.117.487 | 35.528.366 | 13.586.846 | 13.135.539 | 26.722.385 | 13.843.020 | 14.310.577 | 28.153.597 | |
As of June 30, 2014 and December 31, 2013, the detail of bank loans, overdrafts, others loans and Commercial Paper Programs, as well as its conditions, were as follows:
| 30-06-2014 | |||||
|---|---|---|---|---|---|
| Description/Beneficiary Company | Used Amount | Limit | Beginning Date |
Date Limit |
|
| Non-current Loan – mutual contract |
|||||
| Toyota Caetano Portugal | 6.973.683 | 6.973.683 | 22-06-2012 | 5 years | |
| 6.973.683 | 6.973.683 | ||||
| Current | |||||
| Bank Loan | 10.000.000 | 10.000.000 | |||
| Loan – mutual contract | 1.842.105 | 1.842.105 | 22-06-2012 | ||
| Bank Overdrafts | 20.372 | 7.500.000 | |||
| Refundable subsidies | 545.356 | 545.356 | 30-01-2009 | 6 years | |
| Confirming | - | 5.000.000 | |||
| Comercial Paper: | |||||
| Toyota Caetano Portugal | - | 10.000.000 | 30-07-2008 | 5 years | |
| Toyota Caetano Portugal | 2.500.000 | 9.200.000 | 23-05-2014 | 1 year | |
| Toyota Caetano Portugal | 4.900.000 | 7.000.000 | 27-12-2012 | 4 years | |
| Caetano Auto | - | 9.800.000 | 29-08-2007 | 7 years | |
| 19.807.833 | 60.887.461 | ||||
| 26.781.516 | 67.861.144 | ||||
| 31-12-2013 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Description/Beneficiary Company | Used Amount | Limit | Beginning Date |
Date-Limit | ||||
| Non-current | ||||||||
| Loan – mutual contract | ||||||||
| Toyota Caetano Portugal | 7.894.737 | 7.894.737 | 22-06-2012 | 5 years | ||||
| Refundable subsidies | ||||||||
| Toyota Caetano Portugal | 272.678 | 272.678 | 30-01-2009 | 6 years | ||||
| 8.167.415 | 8.167.415 | |||||||
| Current | ||||||||
| Bank Loan | 10.000.000 | 10.000.000 | ||||||
| Loan - mutual contract | 1.842.105 | 1.842.105 | 22-06-2012 | |||||
| Bank Overdrafts | - | 7.500.000 | ||||||
| Refundable subsidies | 545.356 | 545.356 | 30-01-2009 | 6 years | ||||
| Confirming | - | 5.000.000 | ||||||
| Comercial Paper: | ||||||||
| Toyota Caetano Portugal | - | 10.000.000 | 30-07-2008 | 5 years | ||||
| Toyota Caetano Portugal | - | 7.000.000 | 27-12-2012 | 5 years | ||||
| Caetano Auto | - | 9.800.000 | 29-08-2007 | 7 years | ||||
| 12.387.461 | 51.687.461 | |||||||
| 20.554.876 | 59.854.876 | |||||||
Next, we present below the debt amount outstanding, for which there have been granted mortgages (note 35):
Interests relating to the above mentioned bank loans are indexed to Euribor interest rates, increased with a spread that varies from 1 to 6,5 bps.
With the closure of the project application n.º 00/07099 of the program SIME A of AICEP (Agência para o Investimento e Comércio Externo de Portugal, E.P.) was granted a refundable incentive with the following amortization plan:
| Jun-14 | 2014 | Total |
|---|---|---|
| Refundable subsidies: | ||
| Amortization | 545.356 | 545.356 |
| 545.356 | 545.356 | |
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:
| Medium-and long-term | ||||||||
|---|---|---|---|---|---|---|---|---|
| Contract | Leasings | Short-term | 2016 | 2017 | 2018 | > 2019 | TOTAL | TOTAL |
| 2028278 | Commercial facilities | |||||||
| Capital | 93.914 | 94.838 | 95.780 | 96.730 | 365.773 | 653.121 | 747.035 | |
| Interests | 6.956 | 6.024 | 5.083 | 4.132 | 6.840 | 22.079 | 29.035 | |
| 559769 | Commercial facilities | |||||||
| Capital | 60.557 | 60.841 | 61.282 | 61.725 | 713.652 | 897.500 | 958.057 | |
| Interests | 6.707 | 6.270 | 5.830 | 5.387 | 28.078 | 45.565 | 52.272 | |
| 626064 | Commercial facilities | |||||||
| Capital | 147.204 | 152.439 | 157.861 | 163.476 | 1.153.886 | 1.627.663 | 1.774.867 | |
| Interests | 59.172 | 53.936 | 48.515 | 42.900 | 127.670 | 273.021 | 332.193 | |
| Various | Industrial Equipment | |||||||
| Capital | 1.301.372 | 1.395.851 | 949.222 | 782.984 | 837.463 | 3.965.520 | 5.266.891 | |
| Interests | 264.311 | 296.804 | 125.885 | 71.028 | 17.306 | 511.023 | 775.333 | |
| Total Capital | 1.603.046 | 1.703.970 | 1.264.144 | 1.104.915 | 3.070.775 | 7.143.804 | 8.746.850 | |
| Total Interests | 337.146 | 363.035 | 185.312 | 123.447 | 179.895 | 851.688 | 1.188.834 |
The maturities of existing loans at June 30, 2014 can be summarized as follows:
| 2015 | 2016 | 2017 | 2018 | > 2019 | Total | |
|---|---|---|---|---|---|---|
| Loan – mutual contract | 1.842.105 | 3.684.209 | 3.289.474 | - | - | 8.815.788 |
| Bank Overdrafts | 20.372 | - | - | - | - | 20.372 |
| Papel comercial | 7.400.000 | - | - | - | - | 7.400.000 |
| Bank Loan | 10.000.000 | - | - | - | - | 10.000.000 |
| Finance Leases | 1.603.046 | 1.703.970 | 1.264.144 | 1.104.915 | 3.070.775 | 8.746.850 |
| Refundable subsidies | 545.356 | - | - | - | - | 545.356 |
| Total loans | 21.410.879 | 5.388.179 | 4.553.618 | 1.104.915 | 3.070.775 | 35.528.366 |
(Amounts in Euros)
As of June 30, 2014, December 31, 2013 and June 30, 2013 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, 2014, December 31, 2013 and June 30, 2013 the detail of other creditors was as follows:
| Current Liabilities | |||
|---|---|---|---|
| Jun-14 | Dec-13 | Jun-13 | |
| Shareholders Advance payments from customers Other Creditors |
12.761 592.111 563.311 1.168.183 |
19.001 1.033.267 567.701 1.619.969 |
25.942 553.021 1.538.995 2.117.958 |
As of June 30, 2014, December 31, 2013 and June 30, 2013 the caption public entities can be summarized as follows:
| Current Assets | ||||||
|---|---|---|---|---|---|---|
| Jun-14 Dec-13 |
Jun-13 | |||||
| Public Entities | ||||||
| Value Added Taxes | 1.031.240 | 7 | 1.035.996 | |||
| Income Tax (estimated tax) (Note 25) | (240.091) | - | - | |||
| Income Tax (recover tax) | 48.149 | - | - | |||
| Income Tax (RETGS) | 583.119 | - | - | |||
| Income Tax (advance tax pay) | 501.103 | - | - | |||
| 1.923.520 | 7 | 1.035.996 | ||||
| Current Liabilities | ||||||
|---|---|---|---|---|---|---|
| Jun-14 | Dec-13 | Jun-13 | ||||
| Public Entities | ||||||
| Income Taxes withheld | 391.952 | 345.879 | 391.220 | |||
| Value Added Taxes | 5.674.371 | 4.556.146 | 5.480.215 | |||
| Income Tax (estimated tax) (Note 25) | - | 458.641 | 453.168 | |||
| Income Tax (recover tax) | - | - | (48.149) | |||
| Income Tax (RETGS) | - | - | (100.080) | |||
| Income Tax (advance tax pay) | - | (1.107.197) | (653.013) | |||
| Vehicles Tax | - | - | 1.275.918 | |||
| Custom Duties | - | - | 93.463 | |||
| Employee's social contributions | 739.143 | 603.097 | 734.801 | |||
| Others | 263.359 | 210.557 | 238.118 | |||
| 7.068.825 | 5.067.123 | 7.865.660 |
(Amounts in Euros)
As of June 30, 2014, December 31, 2013 and June 30, 2013 the caption "Other Current Liabilities" was as follows:
| Jun-14 | Dec-13 | Jun-13 | |
|---|---|---|---|
| Accrued Cost | |||
| Vacation pay and bonus | 6.940.841 | 4.587.247 | 6.345.422 |
| Expenses with sold Vehicles | 1.451.194 | 1.570.854 | 575.875 |
| Rappel attributable to fleet management entities | 1.038.004 | 1.247.227 | 624.637 |
| Publicity and advertisement campaigns | 994.031 | 1.896.855 | 1.202.397 |
| Commission | 639.919 | 328.089 | 291.069 |
| External supplies and services | 493.031 | 605.678 | 382.035 |
| Supply costs | 490.778 | 503.227 | 395.406 |
| Insurance | 424.314 | 239.433 | 359.488 |
| Accrual for Vehicles Tax | 320.307 | 313.825 | 206.382 |
| Warranty claims | 236.052 | - | 140.298 |
| Interest | 200.382 | 152.852 | 32.547 |
| Rentals | 183.703 | 121.200 | 95.678 |
| Royalties | 107.264 | 62.275 | 42.380 |
| Property Tax | 96.562 | 89.028 | 98.391 |
| Specialized work | 44.087 | - | 10.527 |
| Others | 1.175.628 | 433.061 | 1.441.293 |
| 14.836.098 | 12.150.850 | 12.243.825 | |
| Deferred Income | |||
| Maintenance and service contracts | 1.078.237 | 322.145 | 695.629 |
| Publicity recuperation | 895.177 | 743.862 | 938.940 |
| Investment subsidy | 521.728 | 525.802 | 543.402 |
| Interest Charged to Customers | - | 5.472 | - |
| Others | 67.225 | 267.636 | 353.375 |
| 2.562.367 | 1.864.917 | 2.531.346 | |
| Total | 17.398.465 | 14.015.767 | 14.775.171 |
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, 2014, 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 (ESAF – Espirito Santo Activos Financeiros, S.A.), 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 2013 by the fund manager include the "Projected 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 4,5%, respectively. To this date were used the assumptions as December 31, 2013.
At December 31, 2013 the Group's responsibilities to the defined benefit plan and the assets of the Fund allocated can be summarized as follows:
| Defined benefit plan | 2013 |
|---|---|
| Responsability amount | 29.059.458 |
| Fund Amount | 28.855.219 |
Movements in provisions and accumulated impairment losses over the six month period ended as of June 30, 2014, and June 30, 2013 were as follows:
| 30-06-2014 | ||||||
|---|---|---|---|---|---|---|
| Opening Balances |
Increases | Disposals and Other |
Changes in Perimeter |
Other regularizations |
Ending Balances |
|
| Accumulated impairment losses in investments (Note 9) | 1.781.995 | - | - | - | - | 1.781.995 |
| Accumulated impairment losses in accounts Receivable (Note 11) | 10.634.355 | 159.041 | (548) | (200.102) | 548 10.593.294 | |
| Accumulated impairment losses in inventories (Note 10) | 1.336.902 | 293.383 | - | - | (1) | 1.630.284 |
| Provisions | 323.422 | 41.514 | - | - | (54.224) | 310.712 |
(Amounts in Euros)
| 30-06-2013 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Opening Balances |
Increases | Disposals and Other |
Other regularizations |
Ending Balances |
||||
| Accumulated impairment losses in investments (Note 9) | 1.781.995 | - | - | - | 1.781.995 | |||
| Accumulated impairment losses in accounts Receivable (Note 11) | 11.878.914 | - | - | 2.000 | 11.880.914 | |||
| Accumulated impairment losses in inventories (Note 10) | 1.765.086 | 36.598 | (207.762) | - | 1.593.922 | |||
| Provisions | 315.464 | 44.625 | - | (33.725) | 326.364 | |||
As of June 30, 2014, December 31, 2013 and June 30, 2013, the caption "Provisions" has the following breakdown:
| Jun-14 | Dec-13 | Jun-13 | |
|---|---|---|---|
| Warranty provision Litigations in progress |
110.698 200.014 |
123.410 200.014 |
126.350 200.014 |
| 310.712 | 323.424 | 326.364 |
The derivative financial instruments used by the group as of June 30, 2014 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, 2014 was negative on 163.674 Euros (287.399 Euros negative as of June 30, 2013) and comprises a total exposure of 8,8 million Euros since June 22, 2014 for a period of four years, counting from June 26, 2012.
These derivatives' valuations were provided as of June 30, 2014 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 these contracts can be summarized as follows:
| Fair Value | ||||||
|---|---|---|---|---|---|---|
| Derivate financial instrument | Swap rate | Rate receivable | Type | Jun-14 | Dec-13 | Changes in financial statement |
| Swap BBVA | 1,1000% | Euribor 3M | Negociation | (163.674) | (119.522) | (44.152) |
| (163.674) | (119.522) | (44.152) | ||||
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.
(Amounts in Euros)
The income tax for the six month period ended as of June 30, 2014 and 2013 was as follows:
| Jun-14 | Jun-13 | |
|---|---|---|
| Insufficient taxes estimation | 1.429 | 1.141 |
| Excess taxes estimation | (24.652) | (157.363) |
| Current taxes estimation (Note 20) | 240.091 | 453.168 |
| RETGS | (74.957) | - |
| Deferred income taxes (Note 14) | (317.397) | 57.253 |
| 459.308 | 354.199 | |
The detail of sales and services rendered by geographic markets, during the six month periods ended as of June 30, 2014 and 2013, was as follows:
| Jun-14 | Jun-13 | |||
|---|---|---|---|---|
| Market | Amount | % | Amount | % |
| National | 115.202.165 | 90,46% | 96.731.016 | 90,01% |
| Belgium | 6.244.826 | 4,90% | 5.178.348 | 4,82% |
| African Countries with Official Portuguese Language | 5.568.397 | 4,37% | 4.682.757 | 4,36% |
| United Kingdom | 49.468 | 0,04% | 63.992 | 0,06% |
| Spain | 27.543 | 0,02% | 236.446 | 0,22% |
| Germany | 364 | 0,00% | 155.437 | 0,14% |
| Others | 256.296 | 0,20% | 419.231 | 0,39% |
| 127.349.059 | 100,00% | 107.467.227 | 100,00% | |
Additionally, sales and services rendered by activity were as follows:
| Jun-14 | Jun-13 | |||
|---|---|---|---|---|
| Activity | Amount | % | Amount | % |
| Vehicles | 95.366.293 | 74,89% | 74.814.567 | 69,62% |
| Spare Parts | 22.504.876 | 17,67% | 23.342.817 | 21,72% |
| Repairs and after sales services | 7.511.985 | 5,90% | 6.849.896 | 6,37% |
| Others | 1.965.905 | 1,54% | 2.459.947 | 2,29% |
| 127.349.059 | 100,00% | 107.467.227 | 100,00% | |
(Amounts in Euros)
The caption "External supplies and services" was as follows:
| Jun-14 | Jun-13 | |
|---|---|---|
| Subcontracts | 918.219 | 877.084 |
| Specialized Services | 6.378.057 | 7.776.404 |
| Professional Services | 2.183.727 | 2.487.438 |
| Advertising | 2.928.070 | 3.928.431 |
| Vigilance and Security | 230.110 | 247.937 |
| Professional Fees | 382.883 | 409.485 |
| Comissions | 69.343 | 78.487 |
| Repairs and Maintenance | 583.924 | 624.626 |
| Materials | 276.423 | 252.824 |
| Utilities | 1.478.828 | 1.399.265 |
| Travel and transportation | 984.391 | 819.349 |
| Traveling espenses | 530.020 | 458.487 |
| Personnel transportation | 46.130 | 47.396 |
| Transportation of materials | 408.241 | 313.466 |
| Other supplies | 5.798.690 | 5.883.514 |
| Rent | 1.400.300 | 1.181.967 |
| Communication | 400.725 | 367.765 |
| Insurance | 550.117 | 574.970 |
| Royalties | 171.187 | 125.938 |
| Notaries | 15.847 | 19.121 |
| Cleaning and confort | 273.816 | 286.397 |
| Others Services | 2.986.698 | 3.327.356 |
| 15.834.608 | 17.008.440 |
Payroll expenses are decomposed as follows:
| Jun-14 | Jun-13 | |
|---|---|---|
| Payroll Management | 235.930 | 318.433 |
| Payroll Personnel | 13.115.035 | 12.149.912 |
| Benefits Plan | 888.934 | 894.365 |
| Termination Indemnities | 113.774 | 409.868 |
| Social Security Contribution | 2.986.177 | 3.001.447 |
| Workmen´s Insurance | 202.502 | 184.016 |
| Others | 1.445.555 | 1.316.721 |
| 18.987.907 | 18.274.762 | |
(Amounts in Euros)
The remuneration of members of the board of Toyota Caetano Portugal, S.A. in the six months ended as of June 30, 2014 and 2013 were as follows:
| Board Members | Jun-14 | Jun-13 |
|---|---|---|
| Board of Directors Fixed remunerations Variable remunerations |
235.930 - |
318.433 - |
During the six month period ended as of June 30, 2014 and 2013, the average number of personnel was as follows:
| Personnel | Jun-14 | Jun-13 |
|---|---|---|
| Employees | 1.052 | 1.033 |
| Workers | 420 | 479 |
| 1.472 | 1.512 |
As of June 30, 2014 and 2013, the caption "Other operating income" and "Other operating expenses" were as follows:
| Other operating income | Jun-14 | Jun-13 |
|---|---|---|
| Lease Equipment | 4.770.457 | 4.605.342 |
| Guarantees recovered (Toyota) | 2.757.071 | 4.457.234 |
| Gains in the disposal Tangible Fixed Assets | 685.029 | 724.764 |
| Work for the Company | 1.080.280 | 754.763 |
| Commissions | 999.351 | 705.759 |
| Services provided | 810.914 | 723.362 |
| Subsidies | 1.166.201 | 844.030 |
| Rents expenses recovered | 183.355 | 382.452 |
| Transport expenses recovered | 183.823 | 163.295 |
| Advertising expenses and sales promotion recovered | 1.014.484 | 1.140.385 |
| Materials | 5.075 | 10.996 |
| Rents charged (Note 6) | 1.501.319 | 1.344.872 |
| Others | 1.097.683 | 984.716 |
| 16.255.041 | 16.841.971 | |
(Amounts in Euros)
| Other operating expenses | Jun-14 | Jun-13 |
|---|---|---|
| Taxes | 433.826 | 370.490 |
| Bad debts | 573 | 1.417 |
| Losses in Inventories | (6.549) | (19.817) |
| Prompt payment discounts granted | 4.348 | 1.915 |
| Losses in other investments | 11.047 | - |
| Losses in other non-financial investments | 767 | 93.271 |
| Others | 505.683 | 527.884 |
| Corrections to previous years | 28.323 | 43.258 |
| Donations | 2.293 | 6.323 |
| Subscriptions | 10.122 | 8.698 |
| Fines and penalties | 29.430 | 1.415 |
| Others | 435.515 | 468.190 |
| 949.695 | 975.160 | |
The caption "Other Operating expenses" refers essentially to business incentives and bonuses.
Consolidated net financial results as of June 30, 2014 and 2013 were as follows:
| Expenses and Losses | Jun-14 | Jun-13 |
|---|---|---|
| Interest Other Financial Expenses |
526.019 172.444 |
1.148.168 351.745 |
| 698.463 | 1.499.913 | |
| Income and Gains | Jun-14 | Jun-13 |
|---|---|---|
| Interest | 112.649 | 172.772 |
| Other Financial Income | - | 317.209 |
| 112.649 | 489.981 | |
(Amounts in Euros)
We summarize in the table below a resume of financial instruments of Toyota Caetano Group as of June 30, 2014, December 31, 2013 and June 30, 2013:
| Financial Assets | Financial Liabilities | |||||
|---|---|---|---|---|---|---|
| Jun-14 | Dec-13 | Jun-13 | Jun-14 | Dec-13 | Jun-13 | |
| Derivate Financial Instruments | - | - | - | 163.674 | 119.522 | 287.399 |
| Available for sale Assets | 3.380.035 | 3.341.376 | 3.259.751 | - | - | - |
| Accounts Receivable | 52.833.526 | 44.882.983 | 44.428.340 | - | - | - |
| Other credits - Current | 6.394.252 | 6.486.025 | 6.139.000 | - | - | - |
| Other credits - Non-Current | - | - | 313.000 | - | - | - |
| Public Entities | 1.923.520 | 7 | 1.035.996 | - | - | - |
| Loans | - | - | - | 35.528.366 | 26.722.385 | 28.153.597 |
| Other Creditors | - | - | - | 1.168.183 | 1.619.969 | 3.837.552 |
| Public Entities | - | - | - | 7.068.825 | 5.067.123 | 7.865.660 |
| Accounts Payable | - | - | - | 30.464.290 | 22.792.534 | 22.151.180 |
| Other Creditors | 8.640.515 | 7.676.781 | 6.400.742 | - | - | - |
| 73.171.848 | 62.387.172 | 61.576.829 | 74.393.338 | 56.321.534 | 62.295.388 | |
| Financial Assets | Financial Liabilities | |||||
|---|---|---|---|---|---|---|
| Jun-14 | Dec-13 | Jun-13 | Jun-14 | Dec-13 | Jun-13 | |
| Derivate Financial Instruments Available for sale Assets |
- 3.380.035 |
- 3.341.376 |
- 3.259.751 |
(163.674) - |
(119.522) - |
(287.399) - |
| 3.380.035 | 3.341.376 | 3.259.751 | (163.674) | (119.522) | (287.399) |
| Available for sale Assets | Derivate Financial Instruments | Level | |||
|---|---|---|---|---|---|
| At fair value | At cost | Cash Flow Hedge Accounting |
Negociation | ||
| Cimóvel Fund | 3.313.298 | - | - | - | 1) |
| Others | - | 66.736 | - | - | 3) |
| Interest rate swap | - | - | - | (163.674) | 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 equity | Impact on Income | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Jun-14 | Dec-13 | Jun-13 | Jun-14 | Dec-13 | Jun-13 | ||||
| Derivate Financial Instruments | - | - | - | 44.152 | (485.085) | (317.209) | |||
| Available for sale Assets | 38.660 | 158.238 | 78.713 | - | - | - | |||
| 38.660 | 158.238 | 78.713 | 44.152 | (485.085) | (317.209) |
| Minimum payments of operational lease | Jun-14 | Dec-13 |
|---|---|---|
| Not more than one year | 2.084.134 | 1.652.476 |
| More than one year and no more than five | 6.254.849 | 5.168.222 |
| More than five years | 2.295.528 | 2.295.528 |
| 10.634.511 | 9.116.226 | |
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:
(Amounts in Euros)
| Commercial Debts | Products | Fixed assets | Services | Others | |||||
|---|---|---|---|---|---|---|---|---|---|
| COMPANY | Receivable | Payable | Sales | Purchases | Purch/Salesases | Rendered | Obtained | Income | Costs |
| AMORIM BRITO & SARDINHA LDA | 219 | - | - | - | - | - | - | - | - |
| ATLANTICA | 5.111 | - | - | - | - | - | - | - | - |
| AUTO PARTNER IMOBILIARIA, SA | - | 127.537 | - | - | - | - | 129.274 | - | - |
| CABO VERDE RENT-A-CAR, LDA | 161.626 | 3.939 | 34.161 | - | - | 1.386 | 64.086 | - | - |
| CAETANO ACTIVE (SUL),LDA | 3.774 | 17.523 | 1.243 | 7.569 | - | (281) | 3.425 | - | - |
| CAETANO AERONAUTIC | 55.900 | - | 1.517 | - | - | 11.115 | - | - | 24 |
| CAETANO BAVIERA - COMÉRCIO DE AUTOMÓVEIS, SA | 768.016 | 235.876 | 1.643.770 | 169.720 | (22.672) | (1.321) | 60.723 | 121.705 | 6.876 |
| CAETANO CITY E ACTIVE (NORTE) SA | 28.947 | 9.627 | 23.737 | 5.365 | - | 9.953 | - | - | 16.904 |
| CAETANO DRIVE SPORT URBAN (NORTE)SA | 358.076 | 293.914 | 32.384 | 44.074 | (110.308) | 22.561 | 106.369 | - | 91.376 |
| CAETANO EQUIPAMENTOS MOÇAMBIQUE | 86 | - | - | - | - | - | - | - | - |
| CAETANO FORMULA (NORTE),SA | 51.362 | 158.776 | 19.450 | 124.527 | 52.414 | 19.545 | (7.409) | - | 26.059 |
| CAETANO FÓRMULA EAST ÁFRICA SA | 128 | - | - | - | - | - | - | - | - |
| CAETANO MOTORS , SA | 118.214 | 691 | 12.543 | - | (16.699) | 564 | 11.666 | - | 82.861 |
| CAETANO ONE CV, LDA. | 82.383 | 418 | 17.289 | - | - | 2.446 | - | - | 12.597 |
| CAETANO PARTS LDA | 235.029 | 1.649.410 | 747.758 | 2.373.193 | - | 1.123 | 9.948 | - | 94.090 |
| CAETANO POWER SA | 150.270 | 360.531 | 7.111 | 19.122 | 276.665 | 6.761 | - | - | 81.938 |
| CAETANO RETAILSGPS, S.A. | 10.421 | 27.512 | 41 | - | - | 557 | 6.813 | - | - |
| CAETANO SPAIN, SA | 371.074 | 648 | - | - | - | - | - | - | - |
| CAETANO STAR (SUL) SA | 53.184 | 138.565 | 13.144 | 49.645 | - | 5.835 | 20.396 | - | 861 |
| CAETANO TECHNIK E SQUADRA LDA | 137.051 | 13.492 | 27.322 | 370 | (14.466) | 27.850 | 4.242 | - | 78.201 |
| CAETANOBUS-FABRICAÇÃO DE CARROÇARIAS SA | 9.708.044 | 308.864 | 105.208 | 35.963 | (15.000) | 101.602 | 97.425 | 4.752 | 16.043 |
| CAETSU SA CARPLUS-COMERCIO AUTOMOVEIS SA |
2.800 207.257 |
739.293 50.870 |
- 47.998 |
400 39.643 |
- (22.532) |
18.520 20.529 |
1.314.994 606 |
600 - |
- 108.820 |
| COBUS INDUSTRIES | 440 | - | - | - | - | - | - | - | - |
| COCIGA - CONSTRUÇÕES CIVIS DE GAIA, SA | 7.071 | 61.089 | 5.708 | 425 | 573.174 | 460 | 64.785 | - | 3.936 |
| DICUORE-DECORACAO SA | 57 | - | - | - | - | 427 | - | - | - |
| ENP-ENERGIAS RENOVÁVEIS PORTUGAL, S.A. | 4.035 | 10.339 | - | - | 359 | 5.317 | 7.684 | 4.640 | - |
| FINLOG - ALUGUER E COMÉRCIO AUTO, SA | 1.750 | 35.236 | 90.458 | - | - | (236) | 154.630 | 30.744 | - |
| FUNDAÇÃO SALVADOR CAETANO | 964.802 | 43.304 | - | - | - | - | - | - | - |
| GRUPO SOARES DA COSTA | 30.451 | - | - | - | - | - | - | - | - |
| GUÉRIN-RENT-A-CAR(DOIS),LDA | 1.583 | 140 | - | - | - | - | 50 | 140 | (34) |
| HDICUORE DESIGN, LDA | - | - | - | - | - | 2.602 | - | - | - |
| IBERICAR AUTO NIPON, SA | 15.525 | - | - | - | - | - | - | - | - |
| IBERICAR GALICIA AUTO,SL | - | - | - | - | (359) | - | (7.684) | (4.640) | (7.684) |
| IBERICAR KELDENICH,SL | - | - | - | - | - | - | (19.450) | - | (19.450) |
| ISLAND RENT | 436 | - | - | - | - | - | - | - | - |
| LAVORAUTO-ADMINISTRAÇÃO E CONSULTORIA DE EMPRESAS,SA | - | 170.504 | - | - | - | - | 15.299 | - | - |
| LIDERA | - | 2.000 | - | - | - | - | 19.450 | - | - |
| LUSILECTRA - VEÍCULOS E EQUIPAMENTOS, SA | 249.071 | 19.957 | 126.315 | 36.054 | - | - | 64.122 | 1.540 | - |
| LUSO ASSISTENCIA | 452 | - | - | - | - | - | - | - | - |
| MDS AUTO - MEDIAÇÃO SEGUROS SA | 276 | 103.095 | - | 0 | - | - | 88.797 | 422.224 | - |
| MOVICARGO LDA | 301.901 | 154.568 | - | 10.372 | - | - | 22.184 | 148.665 | - |
| NOVEF-SGPS | 19.500 | - | - | - | - | - | - | - | - |
| OESTE MAR | 111 | - | - | - | - | - | - | - | - |
| POAL | 17.806 | - | - | - | - | - | - | - | - |
| PORTIANGA - COMÉRCIO INTERNACIONAL E PARTICIPAÇÕES, SA | 465.158 | - | 69.425 | - | - | 6.751 | 6.369 | - | 206 |
| RARCON - ARQUITECTURA E CONSULTADORIA, SA | - | 12.733 | - | - | 49.859 | - | 63.090 | - | 349 |
| RIGOR - CONSULTORIA E GESTÃO, SA | 68.262 | 802.858 | 321 | - | 852 | 127.179 | 1.794.439 | (988) | 9.238 |
| ROBERT HUDSON ,LTD | 9.262 | - | 417 | - | - | - | - | - | - |
| SALVADOR CAETANO AUTO AFRICA, SGPS, SA | 811.923 | - | - | - | - | - | - | - | - |
| SALVADOR CAETANO EQUIPAMENTOS SA | 245 | - | 802 | - | - | - | - | - | - |
| SIMOGA - SOC. IMOBILIÁRIA DE GAIA, SA | 551 | - | - | - | - | - | - | - | - |
| SPRAMO - PUBLICIDADE & IMAGEM, S.A. | - | 681 | - | - | - | - | - | - | - |
| TURISPAIVA - SOCIEDADE TURÍSTICA PAIVENSE, LDA. | 224 | - | - | - | - | - | - | - | - |
| VAS AFRICA | 2.135 | - | - | - | - | - | - | - | - |
| VAS CABO VERDE,SOCIEDADE UNIPESSOAL,SA | 26.032 | 13.062 | - | - | - | - | - | - | - |
| 15.508.030 | 5.567.051 | 3.028.123 | 2.916.443 | 751.287 | 391.244 | 4.096.323 | 729.381 | 603.210 |
(Amounts in Euros)
The main information relating to the business segments existing on June 30, 2014 and 2013, is as follows:
| 30- 06- 201 4 |
||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NA TIO NA L |
FO RE IGN |
|||||||||||||||
| Ve hic |
les | Ind rial Eq uip ust nt me |
Oth ers |
Ve hic |
les | Ind ust |
rial Eq uip |
nt me |
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 |
5.1 54. 470 |
1 51. 797 .92 7 |
7.4 95. 094 |
3.1 35. 827 |
4.4 75. 831 |
984 .34 6 |
5.2 33. 223 |
- | 6.5 | 66. 397 |
8.0 54. 499 |
24 .50 0 |
4.1 43 |
4.0 80 |
( 60. 807 .82 1) |
132 .12 2.5 16 |
| Inc om e |
||||||||||||||||
| Op tion al i era nco me |
( .69 0) 555 |
1.3 29. 844 |
( 31. 296 ) |
( 135 .39 6) |
480 .59 4 |
612 .22 8 |
462 .74 7 |
( 2.2 48) |
( | 750 .37 9) |
148 .53 8 |
( 1.0 51) |
3.1 03 |
243 | 1.2 90. 053 |
2.8 51. 290 |
| Fin ial inc anc om e |
1.2 89 |
( 100 .92 3) |
( 4.9 86) |
( 70. 834 ) |
( 381 .24 0) |
124 | ( 29. 493 ) |
69 | 2.4 60 |
( 2.2 38) |
( 44) |
- | 2 | - | ( 585 .81 4) |
|
| Ne t In ith lled ntro com e w non -co inte ts res |
( 554 .40 1) |
1.0 16. 119 |
( 49. 407 ) |
( 206 .23 1) |
99 .35 4 |
612 .35 2 |
433 .25 4 |
( 2.1 79) |
( | 747 .91 8) |
143 .21 1 |
( 1.0 95) |
3.1 04 |
245 | 1.0 59. 761 |
1.8 06. 168 |
| Oth Info atio er rm n |
||||||||||||||||
| Tot al c olid d a ate ts ons sse |
45. 639 .88 2 |
208 .71 5.9 86 |
10. 141 .78 2 |
11 .24 7.0 50 |
8.6 35. 731 |
775 .60 8 |
43 .02 7.1 58 |
23 .54 4.9 51 |
- | 8.7 80. 905 |
- | - | - | ( 135 .08 7.3 38) |
225 .43 6.4 64 |
|
| Tot al c olid ate d li abi litie ons s |
17. 046 .66 4 |
104 .86 7.3 79 |
6.6 74. 711 |
9.7 82. 758 |
3.2 25. 477 |
289 .69 2 |
18 .43 5.8 81 |
3.5 44. 227 |
- | 2.2 11. 123 |
- | - | - | ( 71. 885 .55 4) |
94. 192 .35 8 |
|
| Ca ital Ex p pen ses |
1.6 08. 251 |
1.4 29. 786 |
58. 450 |
5.9 21. 587 |
51 .53 1 |
32. 306 |
2.0 57. 489 |
- | - | 2.7 78 |
- | - | - | ( ) 65. 671 |
11. 096 .50 6 |
|
| De cia tion pre |
564 .58 0 |
1.8 63. 229 |
121 .78 1 |
1.2 55. 445 |
42 .94 2 |
26 .92 1 |
1.7 62. 499 |
- | - | 104 .70 4 |
- | - | - | 7.5 73 |
5.7 49. 675 |
|
| 30- 06- 201 |
3 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NA TIO NA L |
FO | ||||||||||||||
| Ve hic |
les | Ind rial Eq uip ust nt me |
Oth | Ve hic les |
Ind rial Eq uip ust nt me |
Re val mo s |
Co lida ted nso |
||||||||
| Ind ust ry |
Co ial mm erc |
Se rvic es |
Re nta l |
Ma chi nes |
Se rvic es |
Re nta l |
ers | Ind ust ry |
Co ial mm erc |
Ma chi nes |
Se rvic es |
Re nta l |
|||
| PR OF IT |
|||||||||||||||
| Ext al s ale ern s |
4.7 68. 757 |
1 23. 080 .79 4 |
9.3 06. 935 |
2.2 62. 352 |
3.1 28. 853 |
978 .23 4 |
5.1 05. 047 |
197 .56 8 |
5.6 26. |
148 6.9 23. 551 |
164 .79 4 |
7.4 04 |
3.5 00 |
( 49. 478 .36 7) |
112 .07 5.5 69 |
| Inc om e |
|||||||||||||||
| Op tion al i era nco me |
( 965 .47 4) |
654 .32 0 |
8.8 10 |
( 70. 222 ) |
( 17. 554 ) |
609 .94 2 |
804 .94 9 |
189 .73 0 |
( 1.1 36. 685 |
) ( 93. 788 ) |
11 .61 4 |
4.7 46 |
620 | 364 .94 0 |
365 .94 7 |
| Fin ial inc anc om e |
( 25. 069 ) |
( 271 .90 7) |
( 4.3 14) |
( 503 ) |
( 8.6 91) |
( 6.1 07) |
( 643 .21 2) |
553 | ( 34. 845 |
) ( 14. 446 ) |
( 1.3 23) |
( 44) |
( 24) |
- | ( 1.0 09. 932 ) |
| Ne t In ith lled ntro com e w non -co inte ts res |
( ) 1.0 36. 822 |
97. 512 |
( ) 34. 100 |
( ) 70. 725 |
( ) 30. 123 |
603 .08 1 |
55 .07 9 |
138 .87 8 |
( 1.1 71. 530 |
) ( 1) 113 .72 |
10 .29 1 |
4.7 03 |
595 | 548 .69 8 |
( ) 2.3 54. 115 |
| Oth Info atio er rm n |
|||||||||||||||
| Tot al c olid d a ate ts ons sse |
57. 570 .17 2 |
180 .57 2.5 62 |
13. 865 .04 6 |
11 .79 5.4 73 |
4.7 76. 440 |
334 .68 6 |
39 .73 8.6 28 |
35 .08 8.9 66 |
9.2 18. 732 - |
- | - | - | ( 49) 144 .25 0.1 |
208 .71 0.5 57 |
|
| Tot al c olid d li abi litie ate ons s |
20. 532 .17 2 |
82. 063 .09 7 |
9.7 10. 979 |
10 .52 1.7 15 |
1.4 17. 407 |
110 .54 3 |
15 .76 9.5 91 |
14 .82 7.8 97 |
2.3 98. 440 - |
- | - | - | ( 6) 76. 956 .14 |
80. 395 .69 5 |
|
| Ca ital Ex p pen ses |
256 .66 9 |
464 .64 7 |
- | 4.9 68. 217 |
21 .08 1 |
4.1 02 |
556 .85 2 |
- | 4.9 87 - |
- | - | - | ( ) 47. 073 |
6.2 29. 482 |
|
| De cia tion pre |
793 .55 8 |
2.2 89. 230 |
179 .74 1 |
1.4 39. 523 |
59 .83 8 |
11 .64 4 |
1.8 56. 156 |
7.5 29 |
122 .84 9 - |
- | - | - | 36 .22 2 |
6.7 96. 289 |
|
The line "Turnover" includes Sales, Service Rendered and the amount of about 4.773.457,40 Euros (4.605.342.25 Euros as of June 30, 2013) 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, 2014, December 31, 2013 and June 30, 2013, Toyota Caetano Group had assumed the following financial commitments:
| Commitments | Jun-14 | Dec-13 | Jun-13 |
|---|---|---|---|
| Credits | 203.597 | 73.194 | 211.942 |
| Guarantees of Imports | 2.500.000 | 4.000.000 | 11.397.714 |
| 2.703.597 | 4.073.194 | 11.609.656 | |
As of June 30, 2013, the amount of 8.080.910 Euros refers to security provided to the Direção Geral das Alfândegas under the import clearance of target stocks.
Following loans contracted in 2012, amounting to 29,9 million Euros of which were used about 19,5 million Euros, lying to amortize approximately 8,8 million Euros (see note 17), the Group granted the respective financial institutions real guarantees for mortgages on properties valued at the time of contraction of such funding, approximately 37,8 million Euros.
Regarding the tax inspection to the years 2003 and 2004, the additional assessments related with Corporate Income Tax already paid and recognized as expenses in previous years were claimed, amounting to 725.542 Euros, as the Company understands that there are legal reasons for this procedure. During the year of 2010 it has been recovered approximately 218.000 Euros related with this judicial process.
Regarding to the tax inspection of the year 2003, an additional Corporate Income tax assessment was received and paid during 2007, amounting to 453.895 Euros, and recorded as an expense in that period, although it was partially judicially claimed by the Company.
Concerning to the tax inspection made to the year 2004, additional tax assessments were received and paid during 2007, amounting to 677.473 Euros, and recorded as an expense in that period, having the Company decided to claim them judicially. Also, in relation with this tax inspection, the Group received a notification from the tax authorities to correct its tax losses that can be carried forward, and that had already been used in prior years, amounting to 354.384 Euros, recorded under "other operating expenses" in previous years.
(Amounts in Euros)
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 2013, 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.
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 2014.
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, 2014 and 2013 were computed based on the following amounts:
| Jun-14 | Jun-13 | |
|---|---|---|
| Net Income | ||
| Basic | 1.806.168 | -998.184 |
| Diluted | 1.806.168 | -998.184 |
| Number of shares | 35.000.000 | 35.000.000 |
| Earnings per share (basic and diluted) | 0,052 | -0,029 |
During the six month period ended as of June 30, 2014 and Jun 30, 2013 there were no changes in the number of shares outstanding.
The consolidated financial statements were approved by the Board of Directors on August 28th, 2014.
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.
ADMINISTRATIVE MANAGER 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
TAKESHI NUMA DANIELE SCHILLACI 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 2014 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 (Comissao Mercado Valores Mobiliarios) 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 2014 accurately reflect the result of all operations developed in that same period by the Group Toyota Caetano Portugal, SA.
Vila Nova de Gaia, 28th August 2014
Jose Domingos da Silva Fernandes – President
Alberto Luis Lema Mandim
Akito Takami
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 2014 of Toyota Caetano Portugal, S.A. included in the consolidated Directors' Report, consolidated statement of financial position (which shows total assets of Euro 225,436,464 and total shareholders' equity of Euro 131,244,106, including non-controlling interests of Euro 1,639,507 and a net profit of Euro 1,811,382), 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.
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 Standards and Technical Recommendations issued by the Institute of Statutory Auditors, 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 consolidated financial 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 2014 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 consolidated financial information included in the consolidated Directors' Report is not consistent with the consolidated financial information for the period.
August 28, 2014
PricewaterhouseCoopers & Associados - Sociedade de Revisores Oficiais de Contas, Lda. Registered in the Comissão do Mercado de Valores Mobiliários with no. 9077 represented by:
José Pereira Alves, R.O.C.
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