Quarterly Report • Jun 20, 2014
Quarterly Report
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Relatório e Contas 1º Trimestre 2014 Report and Accounts1st Quarter
LISTED COMPANY
Head Office: Lagoas Park, Edifício 2 - 2740-265 Porto Salvo Share Capital: € 210.000.000 Single Legal Person and Registration number at Cascais-Oeiras Commercial Registry 509 234 526
| 1st Q 2010 |
1st Q 2011 |
1st Q 2012 |
1st Q 2013 |
1st Q | Variation 2014 2014/2013 % |
|
|---|---|---|---|---|---|---|
| Average number of workers | 12,742 | 11,817 | 10,412 | 11,358 | 12,705 | 11.9% |
| Turnover | 297 | 309 | 283 | 342 | 357 | 4.2% |
| Operating Income | 307 | 319 | 293 | 354 | 360 | 1.8% |
| EBITDA | 37 | 51 | 39 | 54 | 71 | 31.1% |
| EBITDA / Turnover Margin | 12.3% | 16.4% | 13.9% | 15.7% | 19.8% | 25.9% |
| EBIT | 22 | 37 | 27 | 38 | 54 | 40.3% |
| Tangible fixed assets + Investment properties | 1,059 | 1,033 | 1,031 | 1,044 | 1,084 | 3.8% |
| Investments in associates and joint ventures + Financial assets available for sale + Other investments | 380 | 315 | 153 | 130 | 163 | 25.7% |
| Net debt | 1,055 | 1,116 | 927 | 1,101 | 1,194 | 8.5% |
| Total Equity | 617 | 549 | 319 | 357 | 411 | 15.1% |
| Net Income Attributable to Shareholders | 92 | 8 | 6 | 7 | 16 | 122.3% |
The book values are expressed in million euros
The figures in the "Variation 2014/2013 %" column were calculated based on amounts that were not rounded off. Total Equity includes non-controlling interests.
Under the terms and for the effect of the applicable legal and regulatory provisions, TEIXEIRA DUARTE, S.A. ("TD, S.A.") hereby discloses the Interim Report relative to the first three months of 2014, of which the financial statements attached herewith are also an integral part.
In compliance with and under the regulations on the presentation of periodic information, it is hereby clarified that the elements disclosed herein refer only to the consolidated aspect and that the consolidated financial Statements as at 31 March 2014 were prepared using accounting policies consistent with the International Financial Reporting Standards ("IFRS"), as adopted in the European Union, enforced for periods started on 1 January 2014 and in conformity with IAS 34 – Interim Financial Reporting.
On this issue, it should be noted that, pursuant to the applicable standards, the Group adopted "IFRS 11 - Joint Arrangements for the first time, under the terms and with the scope further detailed in Notes 1 and 3 of the Notes to the Financial Statements. This fact implied that, for purposes of comparability, the indicators of the Consolidated Statements as at 31 March and 31 December 2013 presented herein were restated based on this new standard.
Without prejudice to the regular monitoring of the activity of the Teixeira Duarte Group by its Supervisory Bodies, as well as through the information reported to the Supervisory Bodies for the purpose of the preparation of this document, the elements published herein are not, pursuant to the applicable provisions, subject to auditing.
In addition to the Consolidated Financial Statements and respective notes, this document also presents a brief description of the evolution of the Group's activity during the period under analysis, relative to which we highlight the following aspects:
| 1st Q 14 | 1st Q 13 "Restated" |
Var (%) | 1st Q 13 | |
|---|---|---|---|---|
| Operating income | 360,389 | 353,911 | 1.8% | 353,890 |
| Operating costs | (289,752) | (300,046) | (3.4%) | (300,221) |
| EBITDA | 70,637 | 53,865 | 31.1% | 53,669 |
| Amortisation and depreciation | (15,959) | (14,276) | 11.8% | (14,279) |
| Provisions and impairment losses | (933) | (1,294) | (27.9%) | (1,120) |
| EBIT | 53,745 | 38,295 | 40.3% | 38,270 |
| Financial results | (25,710) | (24,524) | 4.8% | (24,499) |
| Earnings before tax | 28,035 | 13,771 | 103.6% | 13,771 |
| Income tax | (14,279) | (6,981) | 104.5% | (6,981) |
| Net income | 13,756 | 6,790 | 102.6% | 6,790 |
| Attributable to: | ||||
| Shareholders | 15,948 | 7,173 | 122.3% | 7,173 |
| Non-controlling interests | (2,192) | (383) | 472.3% | (383) |
(Values in thousand euros)
The Net Income Attributable to Shareholders was positive by 15,948 thousand euros.
It is important to highlight that, apart from the improved performance of the Group's companies compared with the same quarter of the previous year, this indicator was influenced by currency conversion differences:
| 1st Q 14 | 1st Q 13 "Restated" |
Var (%) | 1st Q 13 | |
|---|---|---|---|---|
| Currency conversion differences | 4,676 | (5,695) | - | (5,692) |
| 4,676 | (5,695) | - | (5,692) |
(Values in thousand euros)
Turnover recorded an overall increase of 4.2% relative to the same period of 2013, having reached 356,519 thousand euros.
Portugal declined by 23.9% and other markets increased by 11.8%, to account for 84.4% of the total Turnover of the Teixeira Duarte Group.
(Values in thousand euros)
The tables below present the Turnover detailed by countries and activity sectors, clearly indicating the exposure of the Group to different economic contexts.
| 1st Q 14 | 1st Q 13 "Restated" | ||||
|---|---|---|---|---|---|
| Country | Value | Contribution | Value | Contribution | Variation |
| Portugal | 55,795 | 15.6% | 73,307 | 21.4% | (23.9%) |
| Angola | 160,093 | 44.9% | 181,518 | 53.0% | (11.8%) |
| Algeria | 17,287 | 4.8% | 13,484 | 3.9% | 28.2% |
| Brazil | 33,072 | 9.3% | 18,333 | 5.4% | 80.4% |
| Spain | 7,032 | 2.0% | 6,450 | 1.9% | 9.0% |
| Mozambique | 10,478 | 2.9% | 12,188 | 3.6% | (14.0%) |
| Venezuela | 71,722 | 20.1% | 34,559 | 10.1% | 107.5% |
| Other | 1,040 | 0.3% | 2,471 | 0.7% | (57.9%) |
| 356,519 | 100.0% | 342,310 | 100.0% | 4.2% |
(Values in thousand euros)
| Activity Sector | 1st Q 14 | Contribution | 1st Q 13 "Restated" |
Contribution | Variation |
|---|---|---|---|---|---|
| Construction | 175,430 | 49.2% | 160,781 | 47.0% | 9.1% |
| Concessions and Services | 17,902 | 5.0% | 16,194 | 4.7% | 10.5% |
| Real estate | 22,344 | 6.3% | 21,644 | 6.3% | 3.2% |
| Hotel services | 15,238 | 4.3% | 18,253 | 5.3% | (16.5%) |
| Distribution | 46,941 | 13.2% | 49,566 | 14.5% | (5.3%) |
| Energy | 16,452 | 4.6% | 28,812 | 8.4% | (42.9%) |
| Automotive | 62,212 | 17.4% | 47,060 | 13.7% | 32.2% |
| 356,519 | 100.0% | 342,310 | 100.0% | 4.2% |
An analysis of turnover is presented below, taking into account its evolution by activity sector, where the restatement explained above only influenced this indicator in the Construction sector:
Construction Turnover grew by 9.1% compared with March 2013, with the increased activity in Algeria, Brazil and Venezuela having offset the declines recorded in Portugal, Angola and Mozambique.
The values in Portugal fell by 24.5%, due to the widespread retraction, and in Angola by 48.1% primarily as a result of the fact that one of the major works underway in this country during the first quarter of 2013 is currently at a stage of completion.
Brazil and Venezuela showed very significant growth, with the first having increased from 7,410 thousand euros to 21,827 thousand euros and, the second, from 34,559 thousand euros to 71,722 thousand euros.
In this context, it should be noted that as at 31 March 2014, the external market represented 88.1% of Construction turnover.
In Concessions and Services, Turnover grew by 10.5% in relation to the first three months of 2013, with good performance in all the markets in which the Group operates, especially in Portugal, where the attraction of new customers enabled an increase of 29.9% relative to March 2013.
Turnover of Real Estate
Turnover of Hotel Services
Turnover of Distribution
Real Estate business, as a whole, grew by 3.2% in relation to the first three months of 2013.
In Portugal, similar values to March 2013 were recorded, while in Brazil the foreign exchange devaluation implied that the 22.7% growth of activity was not reflected in this indicator.
The Turnover of Hotel Services fell by 16.5% year-on-year, essentially penalised by the variations which occurred in Angola, since Portugal and Mozambique recorded values similar to those of March 2013.
In fact, the impact of the closure for remodelling works of "Hotel Trópico", in Luanda, was such that the improvement recorded in the other two hotels of the Group in the city was insufficient to offset it.
Distribution declined by 5.3% relative to March 2013.
Not considering the currency conversion effect, the activity recorded similar amounts to those of the first three months of the previous year.
In Energy, the Group's Turnover fell by 42.9% year-on-year, essentially as a result of the strong reduction of sales in large outlets.
(Values in thousand euros)
The Automotive sector increased its Turnover by 32.2% in relation to the quarter ended on 31 March 2013.
Not considering the currency conversion effect, the activity grew by 37.8% year-onyear.
Operating income increased by 1.8% relative to March 2013, reaching the value of 360,389 thousand euros.
(Values in thousand euros)
The table below confirms the good performance not only of the Concessions and Services and Automotive sectors, but also in Construction which, in spite of Portugal having declined by 25.1%, in general, increased by 7.9% relative to the first three months of 2013.
| Internal Market | External Market | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Activity Sector | 1st Q 14 | 1st Q 13 "Restated" |
Var (%) | 1st Q 14 | 1st Q 13 "Restated" |
Var (%) | 1st Q 14 | 1st Q 13 "Restated" |
Var (%) | |
| Construction | 21,863 | 29,198 | (25.1%) | 155,053 | 134,783 | 15.0% | 176,916 | 163,981 | 7.9% | |
| Concessions and Services | 6,401 | 4,907 | 30.4% | 12,190 | 11,785 | 3.4% | 18,591 | 16,692 | 11.4% | |
| Real estate | 8,818 | 8,843 | (0.3%) | 13,709 | 14,211 | (3.5%) | 22,527 | 23,054 | (2.3%) | |
| Hotel services | 3,079 | 2,368 | 30.0% | 12,295 | 16,213 | (24.2%) | 15,374 | 18,581 | (17.3%) | |
| Distribution | 378 | 988 | (61.7%) | 47,380 | 51,123 | (7.3%) | 47,758 | 52,111 | (8.4%) | |
| Energy | 16,510 | 31,448 | (47.5%) | 22 | 4 | 450.0% | 16,532 | 31,452 | (47.4%) | |
| Automotive | - | - | - | 62,691 | 48,040 | 30.5% | 62,691 | 48,040 | 30.5% | |
| Total | 57,049 | 77,752 | (26.6%) | 303,340 | 276,159 | 9.8% | 360,389 | 353,911 | 1.8% |
In view of the evolution referred to above, the contribution of each activity sector to the total value of the operating income achieved as at 31 March 2014 was as follows:
EBITDA increased by 31.1% relative to March 2013, to stand at 70,637 thousand euros.
Analysing this indicator by sector, the table below shows very divergent performance among the different business areas according to the specific characteristics of each activity and the respective markets in which they operate.
| Activity Sector | 1st Q 14 | 1st Q 13 "Restated" |
Var (%) |
|---|---|---|---|
| Construction | 46,215 | 21,022 | 119.8% |
| Concessions and Services | 1,506 | 4,703 | (68.0%) |
| Real estate | 11,137 | 5,469 | 103.6% |
| Hotel services | 3,209 | 7,167 | (55.2%) |
| Distribution | (690) | 7,142 | - |
| Energy | 635 | 807 | (21.3%) |
| Automotive | 12,615 | 11,169 | 12.9% |
| Not allocated to segments | (3,956) | (3,636) | 8.8% |
| Elimination | (34) | 22 | - |
| 70,637 | 53,865 | 31.1% |
(Values in thousand euros)
The EBITDA / Turnover Margin increased by 25.9% year-on-year, having shifted from 15.7% to 19.8% by March 2014.
The financial results were negative by 25,710 thousand euros for the quarter ended on 31 March 2014.
This indicator presents similar amounts to those recorded for the first quarter of the previous year, although with divergent variations in the following headings:
| 1st Q 14 | 1st Q 13 "Restated" |
Var (%) | |
|---|---|---|---|
| Financial costs and losses: | (53,178) | (42,568) | 24.9% |
| Interest paid | (22,747) | (18,887) | 20.4% |
| Unfavourable currency conversion differences | (24,648) | (17,466) | 41.1% |
| Other financial costs and losses | (5,783) | (6,215) | (7.0%) |
| Financial income and gains: | 32,986 | 16,918 | 95.0% |
| Interest received | 2,906 | 4,144 | (29.9%) |
| Favourable currency conversion differences | 29,324 | 11,771 | 149.1% |
| Cash discounts received | 82 | 129 | (36.4%) |
| Other financial income and gains | 674 | 874 | (22.9%) |
| Earnings from investment activities: | (5,518) | 1,126 | - |
| Earnings from associates and joint ventures | (5,900) | (326) | 1709.8% |
| Dividends | 137 | 1,146 | (88.0%) |
| Other investments | 245 | 306 | (19.9%) |
| Financial results | (25,710) | (24,524) | - |
(Values in thousand euros)
Income Tax for the quarter ended on 31 March 2014 reached the value of 14,279 thousand euros, while at the end of the same period of the previous year it had stood at 6,981 thousand euros.
| 1st Q 14 | 1st Q 13 "Restated" |
Var (%) | |
|---|---|---|---|
| Current tax | (22,628) | (15,630) | 44.8% |
| Deferred tax | 8,349 | 8,649 | (3.5%) |
| (14,279) | (6,981) | 104.5% |
(Values in thousand euros)
Total Net Assets fell by 0.9% in relation to 31 December 2013 "Restated", having reached 2,755,259 thousand euros.
(Values in thousand euros)
Net Debt reached 1,194,384 thousand euros as at 30 March 2014, reflecting an increase of 1.5% in relation to the end of the previous year.
(Values in thousand euros)
The Equity Attributable to Shareholders increased by 54,121 thousand euros, having shifted from 325,407 thousand euros to 379,528 thousand euros, corresponding to growth of 16.6% in relation to 31 December 2013.
Total Equity grew by 14% to stand at 411,063 thousand euros, influenced essentially by the following factors:
Financial Autonomy shifted from 13% as at 31 December 2013 to 14.9% as at 31 March 2014.
The Average Number of Workers at the end of the quarter ended on 31 March 2014 was 12,705, reflecting an increase of 5.8% compared with 31 December 2013.
"Teixeira Duarte, S.A." shares appreciated from 0.89 euros as at 31 December 2013 to 1.105 euros as at 31 March 2014.
The graph below shows the evolution of the stock market prices of the shares during the first three months of the year, which varied during this period between a minimum of 0.87 euros and maximum of 1.44 euros.
During this period, 26,941,457 shares were traded on the stock market, with a total turnover of 29,843,557 euros.
TEIXEIRA DUARTE pursued its activity in the different sectors and markets in which it operates, where the following relevant fact which occurred after the closing of the first quarter of 2014, which was disclosed in due time to the market:
On 2 April 2014, the enterprise group which includes "Teixeira Duarte - Engenharia e Construções, S.A." was notified of the Service Order issued by the Algerian entity "AGA- Algérienne de Gestion des Autoroutes" for the contract "Réalisation des Installations et Equipements d'Exploitation de l'autoroute Este-Ouest, Lot Ouest" (Execution of facilities and equipment for the operation of the East-West Motorway, West Lot), in Algeria.
"Teixeira Duarte - Engenharia e Construções, S.A." is the leader of the enterprise group, holding a stake of 48%, with 46% belonging to the Algerian enterprise group "ETRHB HADDAD" and 6% to the Spanish "SICE, S.A.".
The contract has a foreseen period of twenty-three months counted from the aforesaid 2 April 2014 and an overall value of € 253,645,332 (two hundred and fifty-three million, six hundred and forty-five thousand and three hundred and thirty-two euros), increased by VAT at the legal rate in force, of which 35.7% is paid in euros and the remaining 64.3% in Algerian dinar. Pursuant to its share in the aforesaid enterprise group, "Teixeira Duarte - Engenharia e Construções, S.A." is entitled to receive € 121,749,760 (one hundred and twenty-one million, seven hundred and forty-nine thousand and sixty euros).
For 2014, growth is expected of the activity in various countries of importance in the Group's action in the foreign market, namely a significant increase in Venezuela.
Thus, the Teixeira Duarte Group's Order Book for the construction sector reached the impressive total value of 2,176,068 thousand euros as at 31 March 2014, corresponding to an increase of 6.7% relative to 31 December 2013.
Therefore, and notwithstanding any new contracts that may arise, the Group has assured adequate business levels in construction in the foreign market which, in spite of the current unfavourable circumstances in the domestic market, has implied that, as a whole, Teixeira Duarte already has contracts to the total value of 619,647 thousand euros for 2014 and 547,812 thousand euros for 2015, distributed as follows by the markets of operation of the Teixeira Duarte Group:
| Apr - Dec 2014 | Contribution (%) | 2015 | Contribution (%) | |
|---|---|---|---|---|
| Portugal | 71,348 | 11.5% | 23,995 | 4.4% |
| Angola | 121,942 | 19.7% | 107,495 | 19.6% |
| Algeria | 103,198 | 16.7% | 181,467 | 33.1% |
| Brazil | 70,534 | 11.4% | 58,432 | 10.7% |
| Mozambique | 50,897 | 8.2% | 26,883 | 4.9% |
| Venezuela | 191,628 | 30.9% | 148,375 | 27.1% |
| Other | 10,100 | 1.6% | 1,165 | 0.2% |
| Total | 619,647 | 100.0% | 547,812 | 100.0% |
(Values in thousand euros)
For 2014, Teixeira Duarte maintains the forecast of achieving consolidated operating income of 1,600 million euros.
Lagoas Park, 30 May 2014
The Board of Directors,
Pedro Maria Calainho Teixeira Duarte
Manuel Maria Calainho de Azevedo Teixeira Duarte
Joel Vaz Viana de Lemos
Carlos Gomes Baptista
Diogo Bebiano Branco de Sá Viana Rebelo
Jorge Ricardo de Figueiredo Catarino
| Notes | 31/03/2014 | 31-12-2013 "Restated" |
01-01-2013 "Restated" |
|
|---|---|---|---|---|
| Non-current assets: | ||||
| Goodwill | 29,706 | 29,706 | 29,715 | |
| Intangible assets | 19,095 | 34,563 | 31,281 | |
| Tangible fixed assets | 13 | 604,784 | 571,234 | 529,738 |
| Investment properties | 14 | 478,742 | 479,965 | 498,236 |
| Investments in associates and joint ventures | 7 and 15 | 36,600 | 36,461 | 51,858 |
| Financial assets available for sale | 7 and 16 | 105,599 | 84,613 | 48,597 |
| Other investments | 20,115 | 15,537 | 14,546 | |
| Deferred tax assets | 17 | 192,315 | 188,514 | 111,912 |
| Customers | 52,555 | 53,224 | 58,091 | |
| Other receivables | 103 | 97 | 79 | |
| Other non-current assets | 2,151 | 1,561 | 1,716 | |
| Total non-current assets | 1,541,765 | 1,495,475 | 1,375,769 | |
| Current assets: | ||||
| Inventories | 288,597 | 289,894 | 313,575 | |
| Customers | 444,205 | 492,135 | 476,724 | |
| Other receivables | 82,651 | 69,315 | 65,099 | |
| Cash and cash equivalents | 19 | 171,913 | 186,441 | 241,961 |
| Other investments | 618 | 62 | 10,888 | |
| Other current assets | 225,510 | 245,921 | 279,698 | |
| Total current assets | 1,213,494 | 1,283,768 | 1,387,945 | |
| TOTAL ASSETS | 7 | 2,755,259 | 2,779,243 | 2,763,714 |
| Equity: | ||||
| Share capital | 20 | 210,000 | 210,000 | 210,000 |
| Adjustment of holdings in associates and joint ventures | 4,340 | 1,669 | 1,607 | |
| Currency conversion adjustments | (13,653) | (37,085) | (3,671) | |
| Reserves and retained earnings | 162,893 | 86,849 | 20,066 | |
| Consolidated net income | 15,948 | 63,974 | 24,003 | |
| Equity attributable to shareholders | 379,528 | 325,407 | 252,005 | |
| Non-controlling interests | 31,535 | 35,321 | 73,863 | |
| TOTAL EQUITY | 411,063 | 360,728 | 325,868 | |
| Non-current liabilities: | ||||
| Loans | 22 | 671,487 | 680,980 | 401,060 |
| Provisions | 76,591 | 72,934 | 36,148 | |
| Financial leases | 180,745 | 184,062 | 199,580 | |
| Deferred tax liabilities | 17 | 52,740 | 52,693 | 57,979 |
| Other payables | 8,246 | 9,833 | 15,110 | |
| Other non-current liabilities | 62,501 | 83,906 | 177,793 | |
| Total non-current liabilities | 1,052,310 | 1,084,408 | 887,670 | |
| Current liabilities: | ||||
| Loans | 22 | 694,810 | 681,626 | 834,905 |
| Suppliers | 162,684 | 167,002 | 186,737 | |
| Financial leases | 21,226 | 21,634 | 22,015 | |
| Other payables | 68,222 | 83,927 | 20,260 | |
| Other current liabilities | 344,944 | 379,918 | 486,259 | |
| Total current liabilities | 1,291,886 | 1,334,107 | 1,550,176 | |
| TOTAL LIABILITIES | 7 | 2,344,196 | 2,418,515 | 2,437,846 |
| TOTAL LIABILITIES AND EQUITY | 2,755,259 | 2,779,243 | 2,763,714 |
The notes are an integral part of the consolidated statement of financial position as at 31 March 2014.
| Notes | 1st Q 14 | 1st Q 13 "Restated" |
|
|---|---|---|---|
| Operating income: | |||
| Sales and services rendered | 7 and 8 | 356,519 | 342,310 |
| Other operating income | 8 | 3,870 | 11,601 |
| Total operating income | 8 | 360,389 | 353,911 |
| Operating costs: | |||
| Cost of sales | (130,512) | (110,343) | |
| Change in production | (637) | (1,094) | |
| External supplies and services | (83,590) | (108,977) | |
| Staff costs | (62,949) | (62,069) | |
| Amortisation and depreciation | 7 | (15,959) | (14,276) |
| Provisions and impairment losses in depreciable and amortisable assets and Goodwill | 7 | (933) | (1,294) |
| Other operating costs | (12,064) | (17,563) | |
| Total operating costs | (306,644) | (315,616) | |
| Net operating income | 7 | 53,745 | 38,295 |
| Financial costs and losses | 7 and 9 | (53,178) | (42,568) |
| Financial income and gains | 7 and 9 | 32,986 | 16,918 |
| Earnings from investment activities: | |||
| Earnings from associates and joint ventures | 7 and 9 | (5,900) | (326) |
| Other | 7 and 9 | 382 | 1,452 |
| Financial results | (25,710) | (24,524) | |
| Earnings before tax | 7 | 28,035 | 13,771 |
| Income tax | 10 | (14,279) | (6,981) |
| Consolidated net income for the quarter | 13,756 | 6,790 | |
| Net income attributable to: | |||
| Shareholders | 11 | 15,948 | 7,173 |
| Non-controlling interests | (2,192) | (383) | |
| Earnings per share: | |||
| Basic (euros) | 11 | 0.04 | 0.02 |
| Diluted (euros) | 11 | 0.04 | 0.02 |
The notes are an integral part of the consolidated income statement of the quarter ended on 31 March 2014.
| Notes | 1st Q 14 | 1st Q 13 "Restated" |
|
|---|---|---|---|
| Consolidated net income for the quarter | 13,756 | 6,790 | |
| Income and costs that will not be subsequently reclassified to net income | |||
| Other changes in equity | (3,048) | (2,300) | |
| (3,048) | (2,300) | ||
| Income and costs that may be subsequently reclassified to net income | |||
| Fair value of financial assets available for sale | 16 | 15,881 | 6,605 |
| Currency conversion adjustments | 22,276 | 19,592 | |
| Adjustment of holdings in associates and joint ventures | 15 | 2,671 | (76) |
| Hedge financial instruments | (1,201) | 559 | |
| 39,627 | 26,680 | ||
| Net income recognised directly in equity | 36,579 | 24,380 | |
| Comprehensive income for the quarter | 50,335 | 31,170 | |
| Comprehensive income attributable to: | |||
| Shareholders | 54,121 | 32,202 | |
| Non-controlling interests | (3,786) | (1,032) |
The notes are an integral part of the consolidated statement of other comprehensive income for the quarter ended on 31 March 2014.
| Reserves and retained earnings | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Notes Share capital | Adjustment of holdings in associates and joint ventures |
Currency conversion adjustments |
Legal reserve | Free reserves | Fair value reserve |
Hedge operation reserve |
Retained earnings | Consolidated net income |
Total equity attributable to shareholders |
Non-controlling interests |
Total | ||
| Balance as at 1 January 2013 "Restated" | 20 | 210,000 | 1,607 | (3,671) | 5,500 | 65,700 | 995 | (11,011) | (41,118) | 24,003 | 252,005 | 73,863 | 325,868 |
| Comprehensive income for the period: Consolidated net income for the period Variation in currency conversion adjustments Variation in fair value and divestment of financial assets |
- - |
- - |
- 20,558 |
- - |
- - |
- - |
- - |
- - |
7,173 - |
7,173 20,558 |
(383) (966) |
6,790 19,592 |
|
| available for sale | 16 | - | - | - | - | - | 6,605 | - | - | - | 6,605 | - | 6,605 |
| Effect of hedge operations | - | - | - | - | - | - | 559 | - | - | 559 | - | 559 | |
| Effect of the application of the equity method | 15 | - | (76) | - | - | - | - | - | - | - | (76) | - | (76) |
| Other | - | - | - | - | - | - | - | (2,617) | - | (2,617) | 317 | (2,300) | |
| Operations with shareholders in the period: Appropriation of the consolidated net income for 2012: |
|||||||||||||
| Transfer to retained earnings | - | - | - | - | - | - | - | 24,003 | (24,003) | - | - | - | |
| Balance as at 31 March 2013 | 210,000 | 1,531 | 16,887 | 5,500 | 65,700 | 7,600 | (10,452) | (19,732) | 7,173 | 284,207 | 72,831 | 357,038 | |
| Adjustment of holdings in associates and joint ventures |
Currency conversion adjustments |
Legal reserve Free reserves | Reserves and retained earnings Fair value reserve |
Hedge operation reserve |
Retained earnings | Consolidated net income |
Total equity attributable to shareholders |
Non-controlling interests |
Total | ||||
| Notes Share capital | |||||||||||||
| Balance as at 1 January 2014 "Restated" | 20 | 210,000 | 1,669 | (37,085) | 10,000 | 75,378 | 34,074 | (8,305) | (24,298) | 63,974 | 325,407 | 35,321 | 360,728 |
| Comprehensive income for the period: Consolidated net income for the period Variation in currency conversion adjustments |
- - |
- - |
- 23,432 |
- - |
- - |
- - |
- - |
- - |
15,948 - |
15,948 23,432 |
(2,192) (1,156) |
13,756 22,276 |
|
| Variation in fair value and divestment of financial assets | |||||||||||||
| available for sale | 16 | - | - | - | - | - | 15,881 | - | - | - | 15,881 | - | |
| Effect of hedge operations Effect of the application of the equity method |
15 | - - |
- 2,671 |
- - |
- - |
- - |
- - |
(1,201) - |
- - |
- - |
(1,201) 2,671 |
- - |
|
| Other | - | - | - | - | - | - | - | (2,610) | - | (2,610) | (438) | ||
| Operations with shareholders in the period: Appropriation of the consolidated net income for 2013: |
15,881 (1,201) 2,671 (3,048) |
||||||||||||
| Transfer to retained earnings Balance as at 31 March 2014 |
- 210,000 |
- 4,340 |
- (13,653) |
- 10,000 |
- 75,378 |
- 49,955 |
- (9,506) |
63,974 37,066 |
(63,974) 15,948 |
- 379,528 |
- 31,535 |
- 411,063 |
The notes are an integral part of the consolidated statement of changes in equity for the quarter ended on 31 March 2014.
| Notes | 1st Q 14 | 1st Q 13 "Restated" |
|
|---|---|---|---|
| OPERATING ACTIVITIES: | |||
| Revenue from customers | 341,634 | 262,644 | |
| Payments to suppliers | (211,058) | (248,214) | |
| Payments to staff | (59,651) | (57,835) | |
| Cash flow generated by operations | 70,925 | (43,405) | |
| Income tax payment/revenue | (8,014) | (5,051) | |
| Other revenue/payments relative to operating activity | (8,544) | (14,730) | |
| Cash flow from operating activities (1) | 54,367 | (63,186) | |
| INVESTMENT ACTIVITIES: | |||
| Revenue derived from: | |||
| Financial investments | 19 | 10,654 | 8,684 |
| Tangible fixed assets and investment properties | 455 | 981 | |
| Interest and similar income | 4,089 | 4,407 | |
| Dividends | 19 | 137 | 1,146 |
| 15,335 | 15,218 | ||
| Payments relative to: | |||
| Financial investments | 19 | (15,603) | (5,954) |
| Tangible fixed assets and investment properties | (41,335) | (17,419) | |
| Intangible assets | (146) | (288) | |
| (57,084) | (23,661) | ||
| Cash flow from investment activities (2) | (41,749) | (8,443) | |
| FINANCING ACTIVITIES: | |||
| Revenue derived from: | |||
| Loans raised | 472,384 | 844,935 | |
| Payments relative to: | |||
| Loans raised | (468,693) | (789,610) | |
| Interest and similar costs | (26,984) | (18,525) | |
| (495,677) | (808,135) | ||
| Cash flow from financing activities (3) | (23,293) | 36,800 | |
| Variation in cash and cash equivalents (4)=(1)+(2)+(3) | (10,675) | (34,829) | |
| Effect of currency conversion differences | (3,853) | (17,101) | |
| Cash and cash equivalents at the beginning of the period | 19 | 186,441 | 241,961 |
| Cash and cash equivalents at the end of the period | 19 | 171,913 | 190,031 |
The notes are an integral part of the cash flow statement of the quarter ended on 31 March 2014.
Teixeira Duarte, S.A. ("Company" or "TD, S.A.") with head office in Porto Salvo, was incorporated on 30 November 2009, with share capital of 210,000,000 euros, represented by 420,000,000 shares with the nominal value of 0.50 euro each, and its core business is the implementation and management of investments, the coordination and supervision of other companies integrated in or related to its business Group.
The business group of Teixeira Duarte ("Group") is composed of the companies in which it holds stakes, indicated in Notes 4 and 15. The Group's core business is the following: Construction; Concessions and Services; Real Estate; Hotel Services; Distribution; Energy and Automotive (Note 7).
The values indicated herein are expressed in thousand euros, since this is the currency used preferably in the economic environment in which the Group operates.
During the quarter ended on 31 March 2014, the Group adopted, for the first, IFRS 11 - Joint Arrangements, which classifies joint arrangements as joint operations (combining the existing concepts of jointly controlled assets and jointly controlled operations) or joint ventures (equivalent to the existing concept of a jointly controlled entity) and requires the use of the equity method in joint ventures, thus eliminating the method of proportional consolidation. This standard has replaced IAS 31 - Interests in Joint Ventures and SIC 13 Jointly Controlled Entities - Non.- Monetary Contributions by Venturers. With the adoption of this new standard, the Group no longer proportionally consolidates its investments in joint ventures, namely the Enterprise Groups ("ACE"). The impacts of the adoption of this standard are detailed in Note 3.
Furthermore, following the new law issued in 2014 by Venezuela (Foreign Exchange Agreement number 25), which establishes a new foreign exchange rate for certain currency sale transactions, applicable as of 24 January 2014, there was significant devaluation of the Venezuelan bolívar (Note 6).
The consolidated financial statements as at 31 March 2014 were prepared using the accounting policies consistent with the International Financial Reporting Standards ("IFRS"), as adopted by the European Union, effective for periods beginning on 1 January 2014 and in conformity with IAS 34 - Interim Financial Reporting.
The accounting policies adopted are consistent with those used in the preparation of the financial statements for the financial year ended on 31 December 2013, and described in the respective notes, except with respect to standards and interpretations whose enforcement date corresponds to financial years started on or after 1 January 2014. This is the case of the adoption of IFRS 11 - Joint Arrangements, which led to the discontinuation of the application of the proportional consolidation method to investments in joint ventures, namely Enterprise Groups ("ACE").
As a result of the adoption of IFRS 11, the following alterations were made to the previously reported Consolidated Statement of Financial Position as at 31 December 2013 and 1 January 2013, and to the previously reported Consolidated Income and Cash Flow Statements for the quarter ended on 31 March 2013:
| 01-01-2013 "Restated" |
Application of IFRS 11 |
31/12/2012 | |
|---|---|---|---|
| Non-current assets: | |||
| Tangible fixed assets | 529,738 | (37) | 529,775 |
| Investments in associates and joint ventures | 51,858 | 1,149 | 50,709 |
| Other non-current assets | 794,173 | - | 794,173 |
| Total non-current assets | 1,375,769 | 1,112 | 1,374,657 |
| Current assets: | |||
| Customers | 476,724 | (127) | 476,851 |
| Other receivables | 65,099 | 1,004 | 64,095 |
| Cash and cash equivalents | 241,961 | (4,102) | 246,063 |
| Other current assets | 604,161 | (1,659) | 605,820 |
| Total current assets | 1,387,945 | (4,884) | 1,392,829 |
| TOTAL ASSETS | 2,763,714 | (3,772) | 2,767,486 |
| Equity: | |||
| Equity attributable to shareholders | 252,005 | - | 252,005 |
| Non-controlling interests | 73,863 | - | 73,863 |
| TOTAL EQUITY | 325,868 | - | 325,868 |
| Non-current liabilities: | |||
| Provisions | 36,148 | (2,055) | 38,203 |
| Other non-current liabilities | 851,522 | - | 851,522 |
| Total non-current liabilities | 887,670 | (2,055) | 889,725 |
| Current liabilities: | |||
| Suppliers | 186,737 | (1,093) | 187,830 |
| Other payables | 20,260 | 1,163 | 19,097 |
| Other current liabilities | 1,343,179 | (1,787) | 1,344,966 |
| Total current liabilities | 1,550,176 | (1,717) | 1,551,893 |
| TOTAL LIABILITIES | 2,437,846 | (3,772) | 2,441,618 |
| TOTAL LIABILITIES AND EQUITY | 2,763,714 | (3,772) | 2,767,486 |
| 31-03-2013 "Restated" |
Application of IFRS 11 |
31/03/2013 | |
|---|---|---|---|
| Non-current assets: | |||
| Tangible fixed assets | 544,315 | (31) | 544,346 |
| Investments in associates and joint ventures | 52,005 | 1,227 | 50,778 |
| Other non-current assets | 814,920 | - | 814,920 |
| Total non-current assets | 1,411,240 | 1,196 | 1,410,044 |
| Current assets: | |||
| Customers | 499,754 | (22) | 499,776 |
| Other receivables | 65,702 | 1,376 | 64,326 |
| Cash and cash equivalents | 190,031 | (4,064) | 194,095 |
| Other current assets | 598,489 | (1,459) | 599,948 |
| Total current assets | 1,353,976 | (4,169) | 1,358,145 |
| TOTAL ASSETS | 2,765,216 | (2,973) | 2,768,189 |
| Equity: | |||
| Equity attributable to shareholders | 284,207 | - | 284,207 |
| Non-controlling interests | 72,831 | - | 72,831 |
| TOTAL EQUITY | 357,038 | - | 357,038 |
| Non-current liabilities: | |||
| Provisions | 35,914 | (1,877) | 37,791 |
| Other non-current liabilities | 745,318 | - | 745,318 |
| Total non-current liabilities | 781,232 | (1,877) | 783,109 |
| Current liabilities: | |||
| Suppliers | 158,477 | (630) | 159,107 |
| Other payables | 23,534 | 1,160 | 22,374 |
| Other current liabilities | 1,444,935 | (1,626) | 1,446,561 |
| Total current liabilities | 1,626,946 | (1,096) | 1,628,042 |
| TOTAL LIABILITIES | 2,408,178 | (2,973) | 2,411,151 |
| TOTAL LIABILITIES AND EQUITY | 2,765,216 | (2,973) | 2,768,189 |
| 31-12-2013 "Restated" |
Application of IFRS 11 |
31/12/2013 | |
|---|---|---|---|
| Non-current assets: | |||
| Tangible fixed assets | 571,234 | (23) | 571,257 |
| Investments in associates and joint ventures | 36,461 | 563 | 35,898 |
| Other non-current assets | 887,780 | - | 887,780 |
| Total non-current assets | 1,495,475 | 540 | 1,494,935 |
| Current assets: | |||
| Customers | 492,135 | (170) | 492,305 |
| Other receivables | 69,315 | 8 | 69,307 |
| Cash and cash equivalents | 186,441 | (3,471) | 189,912 |
| Other current assets | 535,877 | (1,260) | 537,137 |
| Total current assets | 1,283,768 | (4,893) | 1,288,661 |
| TOTAL ASSETS | 2,779,243 | (4,353) | 2,783,596 |
| Equity: | |||
| Equity attributable to shareholders | 325,407 | - | 325,407 |
| Non-controlling interests | 35,321 | - | 35,321 |
| TOTAL EQUITY | 360,728 | - | 360,728 |
| Non-current liabilities: | |||
| Provisions | 72,934 | (1,473) | 74,407 |
| Other non-current liabilities | 1,011,474 | - | 1,011,474 |
| Total non-current liabilities | 1,084,408 | (1,473) | 1,085,881 |
| Current liabilities: | |||
| Suppliers | 167,002 | (771) | 167,773 |
| Other payables | 83,927 | (235) | 84,162 |
| Other current liabilities | 1,083,178 | (1,874) | 1,085,052 |
| Total current liabilities | 1,334,107 | (2,880) | 1,336,987 |
| TOTAL LIABILITIES | 2,418,515 | (4,353) | 2,422,868 |
| TOTAL LIABILITIES AND EQUITY | 2,779,243 | (4,353) | 2,783,596 |
| 1st Q 13 "Restated" |
Application of IFRS 11 |
1st Q 13 | |
|---|---|---|---|
| OPERATING ACTIVITIES: | |||
| Revenue from customers | 262,644 | (119) | 262,763 |
| Payments to suppliers | (248,214) | 631 | (248,845) |
| Payments to staff | (57,835) | 8 | (57,843) |
| Cash flow generated by operations | (43,405) | 520 | (43,925) |
| Income tax payment/revenue | (5,051) | - | (5,051) |
| Other revenue/payments relative to operating activity | (14,730) | (482) | (14,248) |
| Cash flow from operating activities (1) | (63,186) | 38 | (63,224) |
| INVESTMENT ACTIVITIES: | |||
| 15,218 | - | 15,218 | |
| Payments relative to: | |||
| (23,661) | - | (23,661) | |
| Cash flow from investment activities (2) | (8,443) | - | (8,443) |
| FINANCING ACTIVITIES: | |||
| Revenue derived from: | |||
| Loans raised | 844,935 | 844,935 | |
| Payments relative to: | |||
| (808,135) | - | (808,135) | |
| Cash flow from financing activities (3) | 36,800 | - | 36,800 |
| Variation in cash and cash equivalents (4)=(1)+(2)+(3) | (34,829) | 38 | (34,867) |
| Effect of currency conversion differences | (17,101) | - | (17,101) |
| Cash and cash equivalents at the beginning of the period | 241,961 | (4,102) | 246,063 |
| Cash and cash equivalents at the end of the period | 190,031 | (4,064) | 194,095 |
| 1st Q 13 "Restated" |
Application of IFRS 11 |
1st Q 13 | |
|---|---|---|---|
| Operating income: | |||
| Sales and services rendered | 342,310 | 30 | 342,280 |
| Other operating income | 11,601 | (9) | 11,610 |
| Total operating income | 353,911 | 21 | 353,890 |
| Operating costs: | |||
| Cost of sales | (110,343) | - | (110,343) |
| Change in production | (1,094) | - | (1,094) |
| External supplies and services | (108,977) | 168 | (109,145) |
| Staff costs | (62,069) | 8 | (62,077) |
| Amortisation and depreciation | (14,276) | 3 | (14,279) |
| Provisions and impairment losses in depreciable and amortisable assets and Goodwill | (1,294) | (174) | (1,120) |
| Other operating costs | (17,563) | (1) | (17,562) |
| Total operating costs | (315,616) | 4 | (315,620) |
| Net operating income | 38,295 | 25 | 38,270 |
| Financial costs and losses | (42,568) | 16 | (42,584) |
| Financial income and gains | 16,918 | (36) | 16,954 |
| Earnings from investment activities: | |||
| Earnings from associates and joint ventures Other |
(326) 1,452 |
(5) | (321) 1,452 |
| Financial results | (24,524) | (25) | (24,499) |
| Earnings before tax | 13,771 | - | 13,771 |
| Income tax | (6,981) | - | (6,981) |
| Consolidated net income for the quarter | 6,790 | - | 6,790 |
| Net income attributable to: | |||
| Shareholders | 7,173 | - | 7,173 |
| Non-controlling interests | (383) | - | (383) |
| Earnings per share: | |||
| Basic (euros) | 0.02 | - | 0.02 |
| Diluted (euros) | 0.02 | - | 0.02 |
As at 31 March 2014, TEIXEIRA DUARTE, S.A. and the following controlled companies were included in the consolidation, by the full method:
| Corporate name | Head office | Effective percentage holding |
|---|---|---|
| INTERNAL MARKET | ||
| CONSTRUCTION | ||
| CONSTRUSALAMONDE, ACE | Edifício 2, Lagoas Park Porto Salvo |
92.50% |
| EPOS - Empresa Portuguesa de Obras Subterrâneas, S.A. |
Edifício 1, Lagoas Park Porto Salvo |
100.00% |
| OFM - Obras Públicas, Ferroviárias e Marítimas, S.A. | Edifício 1, Lagoas Park Porto Salvo |
60.00% |
| SOMAFEL - Engenharia e Obras Ferroviárias, S.A. | Edifício 1, Lagoas Park Porto Salvo |
60.00% |
| TEIXEIRA DUARTE – Engenharia e Construções, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% |
| CONCESSIONS AND SERVICES | ||
| INVICTAAMBIENTE - Recolha de Resíduos e Limpeza Pública, S.A. |
Praça do Bom Sucesso, nº 61 - Escritórios 501 e 502 Porto |
100.00% |
| MARINERTES, S.A. | Edifício 1, Lagoas Park Porto Salvo |
51.00% |
| RECOLTE – Serviços e Meio Ambiente, S.A. | Edifício 1, Lagoas Park Porto Salvo |
100.00% |
| SATU-Oeiras - Sistema Automático de Transporte Urbano, S.A. (a) |
Edifício Paço de Arcos, E.N. 249/3 Paço de Arcos |
49.00% |
| TDGI - Tecnologia de Gestão de Imóveis, S.A. | Edifício 1, Lagoas Park Porto Salvo |
100.00% |
| TDHOSP - Gestão de Edifício Hospitalar, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% |
| REAL ESTATE | ||
| BONAPARTE - Imóveis Comerciais e Participações, S.A. | Edifício 2, Lagoas Park | 100.00% |
| Fundo de Investimento Imobiliário Fechado TDF | Porto Salvo Edifício 2, Lagoas Park Porto Salvo |
100.00% |
| IMOPEDROUÇOS - Sociedade Imobiliária, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% |
| IMOTD - SGPS, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% |
| QUINTA DE CRAVEL - Imobiliária, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% |
| TDE - Empreendimentos Imobiliários, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% |
| TD VIA - Sociedade Imobiliária, S.A. | Edifício 2, Lagoas Park Porto Salvo |
93,75% |
| TDF - Sociedade Gestora de Fundos de Investimento Imobiliário, S.A. |
Edifício 2, Lagoas Park Porto Salvo |
100.00% |
| TEIXEIRA DUARTE - Gestão de Participações e | Edifício 2, Lagoas Park | 100.00% |
| Investimentos Imobiliários, S.A. TRANSBRITAL - Transportes e Britas Pio Monteiro |
Porto Salvo Pedreira das Perdigueiras - Laveiras |
100.00% |
| & Filhos, S.A. V8 - Gestão Imobiliária, S.A. |
Paço de Arcos Edifício 2, Lagoas Park Porto Salvo |
100.00% |
| Corporate name | Head office | Effective percentage holding |
|
|---|---|---|---|
| HOTEL SERVICES | |||
| ESTA - Gestão de Hotéis, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% | |
| EVA - Sociedade Hoteleira, S.A. | Av. República, nº 1 Faro |
100.00% | |
| GO CORP TRAVEL SOLUTIONS – Agência de Viagens, S.A. |
Rua da Comunidade Lusíada, nº 2, Letra C Faro |
100.00% | |
| LAGOASFUT - Equipamento Recreativo e Desportivo, S.A. |
Edifício 2, Lagoas Park Porto Salvo |
100.00% | |
| LAGOAS HOTEL, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% | |
| ROCHORIENTAL - Sociedade Hoteleira, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% | |
| SINERAMA - Organizações Turísticas e Hoteleiras, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% | |
| TDH - SGPS, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% | |
| TDHC - Instalações para Desporto e Saúde, S.A. | Edifício 2, Lagoas Park Porto Salvo |
100.00% | |
| DISTRIBUTION | |||
| BONAPAPEL - Artigos de Papelaria e Equipamentos Informáticos - Unipessoal, Lda. |
Edifício 2, Lagoas Park Porto Salvo |
100.00% | |
| TEIXEIRA DUARTE - DISTRIBUIÇÃO S.A. | Edifício 1, Lagoas Park Porto Salvo |
100.00% | |
| ENERGY | |||
| ACG - Distribuição e Comércio de Gás, S.A. (b) | Rua das Lagoas - Campo Raso Sintra |
48.61% | |
| DIGAL - Distribuição e Comércio, S.A. (b) | Rua das Lagoas - Campo Raso Sintra |
47.50% | |
| DNGÁS - Distribuição e Comércio de Gás, S.A. (b) | Rua das Lagoas - Campo Raso Sintra |
50.00% | |
| MULTIGÁS - Sociedade Comercial e Distribuidora de Gás, S.A. (b) |
Rua das Lagoas - Campo Raso Sintra |
47.50% | |
| PETRIN - Petróleos e Investimentos, S.A. (b) | Edifício 1, Lagoas Park Porto Salvo |
47.91% | |
| PPS - Produtos Petrolíferos, S.A. (b) | Edifício 1, Lagoas Park Porto Salvo |
50.00% | |
| PTG - SGPS, S.A. | Edifício 1, Lagoas Park Porto Salvo |
100.00% | |
| TANQUIGÁS - Distribuição e Comércio de Gás, S.A. (b) | Rua das Lagoas - Campo Raso Sintra |
47.50% | |
| TDARCOL - SGPS, S.A. (c) | Edifício 1, Lagoas Park Porto Salvo |
50.00% | |
| AUTOMOTIVE | |||
| TDO - Investimento e Gestão, S.A. | Rua das Pretas, 4 - Fracção 4 D Funchal |
100.00% |
| Corporate name | Head office | Effective percentage holding |
|---|---|---|
| OTHER | ||
| C + P.A. - Cimento e Produtos Associados, S.A. | Edifício 1, Lagoas Park | 100.00% |
| TDO - SGPS, S.A. | Porto Salvo Rua das Pretas, 4 - Fracção 4 D |
100.00% |
| TEDAL - SGPS, S.A. | Funchal Edifício 2, Lagoas Park Porto Salvo |
100.00% |
| EXTERNAL MARKET | ||
| SOUTH AFRICA | ||
| DISTRIBUTION | ||
| Global Net Distributors (Pty) Ltd. | Po Box 15318 Farrarmere – Benon – Gauteng 1518 South Africa |
100.00% |
| ANGOLA | ||
| CONSTRUCTION | ||
| BETANGOLA - Betões e Pré-Fabricados de Angola, Lda. | Rua Comandante Che Guevara, 67 - 1º D Luanda |
100.00% |
| CONCESSIONS AND SERVICES | ||
| EDUCARE - Actividades Educativas e Culturais, Lda. | Rua Amílcar Cabral, 27 - R/C C | 100.00% |
| TDGI - Tecnologia de Gestão de Imóveis, Lda. | Luanda Rua Comandante Che Guevara, 67 - 1º D Luanda |
100.00% |
| REAL ESTATE | ||
| AFRIMO - Empreendimentos Imobiliários, Lda. | Rua Amílcar Cabral, 51 - 1º C | 51.00% |
| ANGOPREDIAL - Empreendimentos Imobiliários, Lda. | Luanda Rua Amílcar Cabral, 27 - R/C D |
100.00% |
| IMOAFRO - Empreendimentos Imobiliários, Lda. | Luanda Rua Amílcar Cabral, 27 - R/C D |
100.00% |
| TEIXEIRA DUARTE - Engenharia e Construções | Luanda Rua Amílcar Cabral, 27 - R/C D |
100.00% |
| (Angola), Lda. URBÁFRICA - Sociedade Imobiliária, Lda. |
Luanda Rua Amílcar Cabral, 35 - 5º C Luanda |
90.00% |
| HOTEL SERVICES | ||
| ALVALADE - Empreendimentos Turísticos e Hoteleiros, Lda. |
Rua Comandante Gika – Bairro Maiango Luanda |
100.00% |
| ANGOIMO - Empreendimentos e Construções, Lda. | Rua Amílcar Cabral, 35 – 5º C | 100.00% |
| HOTEL TRÓPICO, S.A. | Luanda Rua da Missão, 103 Luanda |
80.00% |
| Corporate name | Head office | Effective percentage holding |
|---|---|---|
| URBANGO - Gestão Imobiliária, Lda. | Rua Amílcar Cabral, 27 - R/C D Luanda |
100.00% |
| DISTRIBUTION | ||
| CND – Companhia Nacional de Distribuição, Lda. | Rua Amílcar Cabral, 51 - 1º C | 100.00% |
| DCG – Distribuição e Comércio Geral, Lda. | Luanda Avenida Pedro de Castro Van - Dúnem Luanda |
100.00% |
| AUTOMOTIVE | ||
| AUTO COMPETIÇÃO Angola, Lda. | Rua Eugénio de Castro, Instalações do | 100.00% |
| AUTO 8, Lda. | Cine Atlântico - Luanda Via A-1, Lote CCB-5 - Pólo Automóvel |
100.00% |
| COMÉRCIO DE AUTOMÓVEIS, Lda. | Luanda Rua Frederich Engels, 9 |
100.00% |
| TDA - Comércio e Indústria, Lda. | Luanda Rua Amílcar Cabral, nº 27 R/C, Letra C |
100.00% |
| VAUCO - Automóveis e Equipamentos, Lda. | Luanda Rua Ho Chi Min (Largo 1º de Maio) Luanda |
51.00% |
| ALGERIA | ||
| CONSTRUCTION | ||
| TEIXEIRA DUARTE ALGERIE, SPA | Parc Miremont, Rue A, nº 136 Bouzareah Algiers |
99.94% |
| BRAZIL | ||
| CONSTRUCTION | ||
| EMPA - Serviços de Engenharia, S.A. | Rua Major Lopes, 800 | 100.00% |
| SOMAFEL Brasil – Obras Ferroviárias e Marítimas, Ltda. |
Bairro São Pedro - Belo Horizonte Rua Major Lopes, 800 – sala 306 Bairro São Pedro – Belo Horizonte |
60.00% |
| CONCESSIONS AND SERVICES | ||
| GONGOJI Montante Energia, S.A. | Rua Major Lopes, 800 - sala 310 | 100.00% |
| PAREDÃO de Minas Energia, S.A. | Bairro São Pedro - Belo Horizonte Rua Major Lopes, 800 - sala 306 |
100.00% |
| TABOQUINHA Energia, S.A. | Bairro São Pedro - Belo Horizonte Rua Major Lopes, 800 - sala 308 Bairro São Pedro - Belo Horizonte |
100.00% |
| REAL ESTATE | ||
| TDPG - Empreendimentos Imobiliários e Hoteleiros, Ltda. TDSP - Participações, Ltda. |
Avenida Domingos Ferreira nº 4060, sala 301 Boa Viagem - Cidade de Recife Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
100.00% 100.00% |
| Corporate name | Head office | Effective percentage holding |
|---|---|---|
| TDSP - Elisa de Moraes, Empreendimentos Imobiliários, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
90.00% |
| TDSP - Bela Vista, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
92.65% |
| TDSP - Galeno de Castro, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
92.65% |
| TDSP - Maratona, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
92.65% |
| TDSP - Direitos Humanos, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
92.65% |
| TDSP – Alta Vista I, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
92.65% |
| TDSP – Verum Mooca, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
100.00% |
| TDSP – Gilberto Sabino, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
95.00% |
| TDSP – Alta Vista II, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
92.65% |
| TDSP – Gualaxos, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
100.00% |
| TDSP – Alta Vista III, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
92.65% |
| TDSP – Zanzibar, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
92.50% |
| TDSP – Dionísio da Costa, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
92.50% |
| TDSP - 11, Empreendimentos Imobiliários, SPE, Ltda. | Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
100.00% |
| TDSP - 12, Empreendimentos Imobiliários, SPE, Ltda. | Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
100.00% |
| TDSP – Volta Redonda, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
100.00% |
| TDSP - 14, Empreendimentos Imobiliários, SPE, Ltda. | Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
100.00% |
| TDSP – Alta Vista IV, Empreendimentos Imobiliários, SPE, Ltda. |
Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
92.65% |
| TDSP - 16, Empreendimentos Imobiliários, SPE, Ltda. | Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 Itaim Bibi - São Paulo |
100.00% |
| TDSP - 17, Empreendimentos Imobiliários, SPE, Ltda. | Rua Iguatemi, nº 448, 14º andar, Conjunto 1401 | 100.00% |
| DISTRIBUTION | ||
| TDD - Distribuição Brasil, Ltda. | Rua Iguatemi, nº 448, 6º andar, Conjunto 602 Itaim Bibi - São Paulo |
100.00% |
| CYPRUS | ||
| OTHER | ||
| LEVENEL, Limited | Irakli, Egkomi, 2413 Nicosia |
100.00% |
| SPAIN | ||
| CONCESSIONS AND SERVICES | ||
| RECOLTE, Servicios Y Medioambiente, S.A.U. | Av. Alberto Alcocer, 24 - 7º Madrid |
100.00% |
| Corporate name | Head office | Effective percentage holding |
|---|---|---|
| GIBRALTAR | ||
| CONSTRUCTION | ||
| Teixeira Duarte International, LTD. | 23, Portland House - Glacis Road Gibraltar |
100.00% |
| MACAU | ||
| CONSTRUCTION | ||
| TEIXEIRA DUARTE - Engenharia e Construções (Macau), Lda. |
Rua de Xangai, 175 Edifício Assoc. Comercial de Macau, 10 A Macau |
100.00% |
| MOZAMBIQUE | ||
| CONSTRUCTION | ||
| TEIXEIRA DUARTE - Engenharia e Construções (Moçambique), Lda. |
Av. 24 de Julho, 141 Maputo |
74.46% |
| CONCESSIONS AND SERVICES | ||
| TDGI - Tecnologia de Gestão de Imóveis, Lda. | Av. 24 de Julho, 141 Maputo |
69.55% |
| REAL ESTATE | ||
| IMOPAR - Centro Comercial de Maputo, S.A.R.L. | Av. 24 de Julho, 135 Maputo |
100.00% |
| HOTEL SERVICES | ||
| AVENIDA - Empreendimentos Turísticos e Hoteleiros, Lda. Sociedade Hotel Tivoli, Lda. |
Av. 24 de Julho, 135 Maputo Av. 25 de Setembro, 1321 |
100.00% 65.00% |
| TIVOLI BEIRA - Hotelaria e Serviços, Lda. | Maputo Av. 24 de Julho, 141 Maputo |
98.72% |
| NAMIBIA | ||
| CONCESSIONS AND SERVICES | ||
| KARIBIB Portland Cement (PTY) | P O Box 9574 Windhoek | 95.00% |
| KPC Trading and Services | Namibia P O Box 2143 Windhoek |
57.00% |
| SQUIRREL Investments 115 PTY, Ltd. | Namibia P O Box 2143 Windhoek Namibia |
95.00% |
| RUSSIA | ||
| CONCESSIONS AND SERVICES | ||
| MMK Cement, Limited Liability Company | Murmansk Russia |
70.00% |
| Corporate name | Head office | Effective percentage holding |
|---|---|---|
| VENEZUELA | ||
| CONSTRUCTION | ||
| Consorcio Boyacá – La Guaira | Av. San Juan Bosco Ota Coromoto no Aplica Urb. Altamira – Caracas Venezuela |
57.20% |
(a) The Group controls these subsidiaries through the subsidiary TEIXEIRA DUARTE - Engenharia e Construções, S.A.
(b) The Group controls these subsidiaries through the subsidiary TDARCOL - SGPS, S.A.
(c) The Group controls these subsidiaries through the subsidiary PTG - SGPS, S.A.
During the quarter ended on 31 March 2014, no companies entered or left the consolidation perimeter, relative to the consolidation perimeter as at 31 December 2013.
The following exchange rates were used to convert the assets and liabilities expressed in foreign currency as at 31 March 2014 and 31 December 2013, as well as the earnings of operations developed in countries where the functional currency is different from the Euro, for the quarters ended on 31 March 2014 and 2013:
| Closing rate | Average rate | |||||
|---|---|---|---|---|---|---|
| Currency | 31/03/2014 | 31/12/2013 | Var | 31/03/2014 | 31/03/2013 | Var |
| US Dollar | 1.3788 | 1.3791 | (0.02%) | 1.3727 | 1.3170 | 4.23% |
| Macaense Pataca | 11.0182 | 11.0141 | 0.04% | 10.9707 | 10.5219 | 4.27% |
| Mozambican Metical | 41.8200 | 41.2400 | 1.41% | 41.5575 | 39.5075 | 5.19% |
| Venezuelan Bolivar (a) | 14.7532 | 8.6774 | 70.02% | 15.4689 | 6.9509 | 122.55% |
| Angolan Kwanza | 133.9980 | 134.5920 | (0.44%) | 133.4458 | 126.0405 | 5.88% |
| Algerian Dinar | 108.1372 | 108.1034 | 0.03% | 107.2769 | 103.2285 | 3.92% |
| Moroccan Dirham | 11.2296 | 11.2621 | (0.29%) | 11.2338 | 11.1469 | 0.78% |
| Brazilian Real | 3.1276 | 3.2576 | (3.99%) | 3.2200 | 2.6376 | 22.08% |
| Ukrainian Hryvnia | 15.6839 | 11.3638 | 38.02% | 13.1292 | 10.6882 | 22.84% |
| Namibian Dollar | 14.5875 | 14.5660 | 0.15% | 14.7989 | 11.7131 | 26.34% |
| Cape Verdean Escudo | 110.2650 | 110.2650 | - | 110.2650 | 110.2650 | - |
| Russian Rouble | 48.7800 | 45.3246 | 7.62% | 47.9490 | 40.2378 | 19.16% |
| Tunisian Dinar | 2.1797 | 2.2701 | (3.98%) | 2.1998 | 2.0621 | 6.68% |
| South Africa Rand | 14.5875 | 14.5660 | 0.15% | 14.7989 | 11.7131 | 26.34% |
| Columbian Peso | 2,715.9300 | 2,661.6600 | 2.04% | 2,732.2850 | na | - |
(a) As mentioned in the Introduction, following the new law issued in 2014 by Venezuela (Foreign Exchange Agreement number 25), which establishes a new foreign exchange rate for certain currency sale transactions, applicable as of 24 January 2014, there was significant devaluation of the Venezuelan bolívar during this quarter. Specifically, this legislation is applicable for the settlement of currency sale transactions intended, namely, for the payment of "international investments" (a concept which includes the repatriation of start-up capital and remittance of interest and dividends). The settlement of currency for these transactions will be made at the exchange rate arising from the last allocation of currency made through the auction system (SICAD).
The Group organises its activity according to the following business segments:
The sales and services rendered and the earnings of each of operating segment referred to above, for the quarters ended on 31 March 2014 and 2013 "Restated", were as follows:
| Sales and services rendered | ||||||||
|---|---|---|---|---|---|---|---|---|
| 1st Q 14 | 1st Q 13 "Restated" | Net operating income | ||||||
| Segment | Customers abroad |
Inter-segmental | Total | Customers abroad |
Inter-segmental | Total | 1st Q 14 | 1st Q 13 "Restated" |
| Construction | 175,430 | 28,697 | 204,127 | 160,781 | 15,449 | 176,230 | 35,926 | 11,760 |
| Concessions and services | 17,902 | 2,764 | 20,666 | 16,194 | 3,922 | 20,116 | 718 | 3,695 |
| Real estate | 22,344 | 2,636 | 24,980 | 21,644 | 3,285 | 24,929 | 9,827 | 4,882 |
| Hotel services | 15,238 | 3,184 | 18,422 | 18,253 | 2,191 | 20,444 | 1,290 | 4,585 |
| Distribution | 46,941 | 1,110 | 48,051 | 49,566 | 2,201 | 51,767 | (2,267) | 5,927 |
| Energy | 16,452 | 583 | 17,035 | 28,812 | 689 | 29,501 | 214 | 355 |
| Automotive | 62,212 | 2,577 | 64,789 | 47,060 | 2,781 | 49,841 | 12,028 | 10,705 |
| Not allocated to segments | - | 976 | 976 | - | - | - | (3,957) | (3,636) |
| Elimination | - | (42,527) | (42,527) | - | (30,518) | (30,518) | (34) | 22 |
| 356,519 | - | 356,519 | 342,310 | - | 342,310 | 53,745 | 38,295 | |
| Financial costs and losses (Note 9) | (53,178) | (42,568) | ||||||
| Financial income and gains (Note 9) | 32,986 | 16,918 | ||||||
| Earnings from investment activities (Note 9) | (5,518) | 1,126 | ||||||
| Earnings before tax | 28,035 | 13,771 |
Inter-segmental transactions are carried out under market conditions and terms, equivalent to transactions conducted with third parties.
The accounting policies in the different segments are consistent with the Group's policies.
| Segment | Fixed capital expenditure | through | Amortisation and depreciation profit or loss |
Provisions and impairment losses (a) |
||
|---|---|---|---|---|---|---|
| 1st Q 14 | 1st Q 13 "Restated" |
1st Q 14 | 1st Q 13 "Restated" |
1st Q 14 | 1st Q 13 "Restated" |
|
| Construction | 9,159 | 18,474 | 9,100 | 7,946 | 1,189 | 1,316 |
| Concessions and services | 1,361 | 437 | 1,044 | 1,006 | (256) | 2 |
| Real estate | 2,758 | 187 | 1,310 | 611 | - | (24) |
| Hotel services | 13,197 | 923 | 1,919 | 2,582 | - | - |
| Distribution | 9,502 | 2,327 | 1,577 | 1,215 | - | - |
| Energy | 341 | 2,953 | 421 | 452 | - | - |
| Automotive | 1,206 | 1,441 | 587 | 464 | - | - |
| Not allocated to segments | - | - | 1 | - | - | - |
| 37,524 | 26,742 | 15,959 | 14,276 | 933 | 1,294 |
(a) Net impairment losses relative to depreciable and amortisable assets and goodwill.
The assets and liabilities of the segments and their respective reconciliation with the consolidated total, as at 31 March 2014 and 31 December 2013 "Restated", are as follows:
| Assets | Liabilities | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 31/03/2014 | 31-12-2013 "Restated" | |||||||||
| Segment | Investments in associates and joint ventures (Note 15) |
Financial assets available for sale (Note 16) |
Other assets |
Total | Investments in associates and joint ventures (Note 15) |
Financial assets available for sale (Note 16) |
Other assets | Total | 31/03/2014 | 31-12-2013 "Restated" |
| Construction | 1,286 | - | 1,904,317 | 1,905,603 | 1,552 | - | 1,849,050 | 1,850,602 | 1,369,334 | 1,431,171 |
| Concessions and services | 783 | 24,560 | 231,996 | 257,339 | 842 | 25,208 | 232,336 | 258,386 | 179,160 | 176,292 |
| Real estate | 801 | 73,775 | 1,610,267 | 1,684,843 | 71 | 54,080 | 1,565,408 | 1,619,559 | 897,765 | 887,726 |
| Hotel services | - | - | 312,057 | 312,057 | - | - | 303,808 | 303,808 | 221,756 | 215,297 |
| Distribution | - | - | 228,037 | 228,037 | - | - | 221,756 | 221,756 | 200,004 | 184,806 |
| Energy | 24 | - | 74,834 | 74,858 | 24 | - | 76,064 | 76,088 | 47,386 | 49,271 |
| Automotive | - | - | 166,202 | 166,202 | - | - | 146,448 | 146,448 | 129,355 | 108,128 |
| Not allocated to segments | 33,706 | 7,264 | 1,030,342 | 1,071,312 | 33,972 | 5,325 | 971,611 | 1,010,908 | 222,834 | 211,041 |
| Elimination | - | - | (2,944,992) | (2,944,992) | - | - | (2,708,312) | (2,708,312) | (923,398) | (845,217) |
| 36,600 | 105,599 | 2,613,060 | 2,755,259 | 36,461 | 84,613 | 2,658,169 | 2,779,243 | 2,344,196 | 2,418,515 |
The sales, services rendered and information on non-current non-monetary assets by geographical segment are broken down as follows for the quarters ended on 31 March 2014 and 2013 and as 31 March 2014 and 31 December 2013 "Restated", respectively:
| Sales and services rendered | Non-monetary non-current assets | |||
|---|---|---|---|---|
| 1st Q 13 | 31-12-2013 | |||
| Geographic segment | 1st Q 14 | "Restated" | 31/03/2014 | "Restated" |
| Portugal | 55,796 | 73,307 | 608,024 | 608,311 |
| Angola | 160,093 | 181,518 | 398,439 | 369,578 |
| Algeria | 17,287 | 13,484 | 11,577 | 12,395 |
| Brazil | 33,073 | 18,333 | 53,044 | 52,643 |
| Spain | 7,032 | 6,450 | 13,625 | 12,946 |
| Mozambique | 10,477 | 12,188 | 26,308 | 24,911 |
| Venezuela | 71,722 | 34,559 | 20,063 | 33,343 |
| Other | 1,039 | 2,471 | 1,247 | 1,341 |
| 356,519 | 342,310 | 1,132,327 | 1,115,468 |
Non-current non-monetary assets include goodwill, intangible assets, tangible fixed assets and investment properties.
For the quarters ended on 31 March 2014 and 2013 "Restated", operating income was as follows:
| 1st Q 14 | 1st Q 13 "Restated" |
|
|---|---|---|
| Sales and services rendered: | ||
| Sales | 287,103 | 289,470 |
| Services rendered | 69,416 | 52,840 |
| 356,519 | 342,310 | |
| Other operating income: | ||
| Supplementary income | 922 | 1,369 |
| Reversal of impairment losses in accounts receivable | 648 | 267 |
| Divestment of assets (a) | 148 | 717 |
| Own work capitalised (b) | 131 | 3,014 |
| Reversal of inventory impairment losses | 64 | 1,384 |
| Inventory gains | 35 | 2,348 |
| Tax refunds | 2 | 1,219 |
| Variation in the fair value of investment properties | - | 260 |
| Other operating income | 1,920 | 1,023 |
| 3,870 | 11,601 | |
| 360,389 | 353,911 |
(a) The gains indicated above were obtained through the divestment of tangible fixed assets.
(b) Own work capitalised essentially corresponds to costs associated to the construction of properties.
The financial results for the quarters ended on 31 March 2014 and 2013 "Restated" were as follows:
| 1st Q 14 | 1st Q 13 "Restated" |
|
|---|---|---|
| Financial costs and losses: | ||
| Interest paid | (22,747) | (18,887) |
| Unfavourable currency conversion differences | (24,648) | (17,466) |
| Other financial costs and losses | (5,783) | (6,215) |
| (53,178) | (42,568) | |
| Financial income and gains: | ||
| Interest received | 2,906 | 4,144 |
| Favourable currency conversion differences | 29,324 | 11,771 |
| Cash discounts received | 82 | 129 |
| Other financial income and gains | 674 | 874 |
| 32,986 | 16,918 | |
| Earnings from investment activities: | ||
| Earnings from associates and joint ventures (a) | (5,900) | (326) |
| Dividends (b) | 137 | 1,146 |
| Other investments | 245 | 306 |
| (5,518) | 1,126 | |
| Financial results | (25,710) | (24,524) |
During the quarters ended on 31 March 2014 and 2013, no interest was capitalised on the acquisition cost of qualifying assets.
"TD, SA" is subject to the special taxation regime for corporate groups (RETGS), which covers all the companies in which it holds a stake, directly or indirectly, of at least 75% of the respective share capital, provided that this stake confers more than 50% of the voting rights and that they are also resident in Portugal and taxed under the general regime of Corporate Income Tax ("IRC").
All the other participated companies, not covered by the special taxation regime for corporate groups, are taxed individually, based on their respective tax bases and applicable rates of Corporate Income Tax, Municipal Surcharge and State Surcharge.
"TD, S.A." and most of the companies in which it holds a stake, based in Portugal, are subject to Corporate Income Tax ("IRC") at the rate of 23%. Entities which record taxable profit are also subject to the Municipal Surcharge, whose rate may vary to the maximum of 1.5%, as well as the State Surcharge, incident on the portion of taxable profit in excess of 1,500,000 euros, 7,500,000 euros and 35,000,000 euros, at the rates of 3%, 5% and 7%, respectively. Regardless of the profit for tax purposes recorded for the year, the entities referred to above are also subject to autonomous taxation on the expenses and at the rates established in article 88 of the Corporate Income Tax Code.
In the calculation of the taxable profit, to which the aforesaid tax rates are applied, non-acceptable amounts for tax purposes are added to and subtracted from the book value profit or loss. These differences between the book value profit or loss and the profit or loss for tax purposes may be of a temporary or permanent nature.
Pursuant to the legislation in force, tax returns in Portugal may be reviewed and corrected by the tax authorities for a period, in general, of four years (five years for Social Security).
The Board of Directors believes that any corrections which might arise from any tax reviews/inspections to these tax returns will not significantly affect the consolidated financial statements reported as at 31 March 2014.
The Group records deferred taxes corresponding to the temporary differences between the book value of the assets and liabilities and the corresponding tax base, as laid down in IAS 12 - Income Tax (Note 17).
The income taxes recognised for the quarters ended on 31 March 2014 and 2013 are as follows:
| 1st Q 14 | 1st Q 13 | |
|---|---|---|
| Current tax: | ||
| Income tax in Portugal | (11,258) | (5,395) |
| Income tax in other jurisdictions | (11,370) | (10,235) |
| Current tax | (22,628) | (15,630) |
| Deferred tax (Note 17): | 8,349 | 8,649 |
| (14,279) | (6,981) |
In addition to the amounts of deferred taxes recorded directly in the income statement, deferred taxes amounting to (4,714) thousand euros were recorded directly in equity as at 31 March 2014 ((942) thousand euros as at 31 March 2013) (Note 17).
The earnings per share for the quarters ended on 31 March 2014 and 2013 were calculated taking into account the following amounts:
| 1st Q 14 | 1st Q 13 | |
|---|---|---|
| Net income for the effect of calculating earnings per basic share (net income for the period) | 15,948 | 7,173 |
| Weighted average number of shares for the effect of calculating earnings per basic share (thousand) | 420,000 | 420,000 |
| Earnings per basic share | 0.04 | 0.02 |
Due to the fact that, for the quarters ended on 31 March 2014 and 2013, there are no dilution effects of the earnings per share, the diluted earnings per share are the same as the basic earnings per share.
The Company's separate financial statements relative to 31 December 2013 have not yet been approval by the Shareholders, and the General Meeting of Shareholders has been called for 31 May 2013.
During the quarters ended on 31 March 2014 and 2013 "Restated", the movements which occurred in the tangible fixed assets, as well as in the respective accumulated depreciation and impairment losses, were as follows:
| Land & Buildings | Other | Tangible fixed | Advances | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| natural | & other | Basic | Transport | Tools & | Administrative tangible | fixed assets | on account of | |||
| Gross assets: | resourcesconstructions equipment | equipment | utensils | equipment | fixed assets in progress tang. fixed assets | Total | ||||
| Balance as at 1 January 2013 | 33,826 | 409,337 | 377,713 | 79,540 | 36,989 | 40,078 | 18,721 | 43,985 | 183 1,040,373 | |
| Currency conversion adjustments | (223) | 4,909 | 687 | 493 | 170 | 542 | 396 | (587) | (54) | 6,333 |
| Additions | - | 637 | 9,898 | 1,872 | 777 | 404 | 632 | 9,819 | - | 24,039 |
| Transfers and write-offs | (2) | (1,533) | 1,235 | 488 | (61) | (51) | (2,285) | 3,079 | (129) | 740 |
| Divestments | (33) | (197) | (835) | (657) | (27) | (215) | (3) | - | (1,967) | |
| Balance as at 31 March 2013 | 33,568 | 413,153 | 388,698 | 81,736 | 37,848 | 40,758 | 17,461 | 56,296 | - 1,069,518 | |
| Balance as at 1 January 2014 | 31,683 | 434,063 | 406,263 | 82,356 | 41,065 | 41,134 | 10,004 | 65,873 | - 1,112,441 | |
| Currency conversion adjustments | 87 | (1,053) | (1,480) | 32 | (245) | (373) | 77 | (2,460) | - | (5,415) |
| Additions | - | 634 | 3,761 | 2,507 | 462 | 403 | 2,082 | 27,401 | - | 37,250 |
| Transfers and write-offs | (141) | 3,673 | (1,060) | 400 | 411 | (43) | 363 | 11,264 | - | 14,867 |
| Divestments | - | (73) | (1,425) | (433) | (4) | (79) | - | - | - | (2,014) |
| Balance as at 31 March 2014 | 31,629 | 437,244 | 406,059 | 84,862 | 41,689 | 41,042 | 12,526 | 102,078 | - 1,157,129 | |
| Accumulated depreciation | ||||||||||
| and impairment losses: | ||||||||||
| Balance as at 1 January 2013 | 166 | 112,976 | 274,235 | 57,894 | 28,893 | 31,316 | 5,155 | - | - | 510,635 |
| Currency conversion adjustments | - | 353 | 984 | 504 | 11 | 513 | 42 | - | - | 2,407 |
| Reinforcements | - | 3,719 | 6,366 | 2,496 | 625 | 712 | 122 | - | - | 14,040 |
| Transfers and write-offs | - | (161) | 56 | (40) | (69) | (35) | (7) | - | - | (256) |
| Divestments | - | (165) | (608) | (637) | (26) | (184) | (3) | - | - | (1,623) |
| Balance as at 31 March 2013 | 166 | 116,722 | 281,033 | 60,217 | 29,434 | 32,322 | 5,309 | - | - | 525,203 |
| Balance as at 1 January 2014 | 166 | 133,284 | 280,370 | 58,481 | 31,097 | 32,367 | 5,442 | - | - | 541,207 |
| Currency conversion effect | - | (342) | (248) | 20 | (194) | (83) | - | - | - | (847) |
| Reinforcements | - | 4,060 | 7,730 | 2,226 | 715 | 765 | 165 | - | - | 15,661 |
| Transfers and write-offs | - | (174) | (1,886) | 101 | (62) | (4) | (2) | - | - | (2,027) |
| Divestments | - | (39) | (1,151) | (381) | (3) | (75) | - | - | - | (1,649) |
| Balance as at 31 March 2014 | 166 | 136,789 | 284,815 | 60,447 | 31,553 | 32,970 | 5,605 | - | - | 552,345 |
| Net value: | ||||||||||
| As at 31 March 2013 | 33,402 | 296,431 | 107,665 | 21,519 | 8,414 | 8,436 | 12,152 | 56,296 | - | 544,315 |
| As at 31 March 2014 | 31,463 | 300,455 | 121,244 | 24,415 | 10,136 | 8,072 | 6,921 | 102,078 | - | 604,784 |
The additions to tangible fixed assets carried out during the quarter ended on 31 March 2014 essentially refer to investments in facilities and equipment.
As at 31 March 2014, the tangible assets in progress include 75,316 thousand euros relative to buildings and other constructions in progress, in particular the following:
During the quarters ended on 31 March 2014 and 2013, the movement which occurred in investment properties was as follows:
| 2014 | 2013 | |
|---|---|---|
| Balance as at 1 January | 479,965 | 498,236 |
| Currency conversion adjustments | 16 | 2,517 |
| Increases / divestments | (812) | (1,435) |
| Variation in fair value | (427) | 260 |
| Transfer of tangible fixed assets | - | 12 |
| Balance as at 31 March | 478,742 | 499,590 |
The income gained from investment properties arising from operating lease contracts reached 8,119 thousand euros for the quarter ended on 31 March 2014 (7,999 thousand euros as at 31 March 2013). In the quarter ended on 31 March 2014, direct operating costs related to investment properties reached 739 thousand euros (973 thousand euros as at 31 March 2013).
The following associates and joint ventures were recorded through the equity method as at 31 March 2014:
| Corporate name | Head office | Effective percentage holding |
|---|---|---|
| ALVORADA PETRÓLEO, S.A. | Rua Major Lopes, 800, 3º andar Belo Horizonte - Minas Gerais - Brazil |
43.20% |
| ALSOMA, GEIE. | 3 Av André Malraux Levallois Peret |
27.00% |
| AVIAS - Grupo Ferroviário para a Alta Velocidade, ACE |
Edifício 1, Lagoas Park Porto Salvo |
14.10% |
| AVIA PORTUGAL - Produtos Petrolíferos, S.A. | Edifício 1, Lagoas Park Porto Salvo |
21.32% |
| CAIS DE CRUZEIROS 2ª FASE, ACE | Rua da Tapada da Quinta de Cima Linhó – Sintra |
15.00% |
| CONBATE, ACE | Edifício 2, Lagoas Park Porto Salvo |
20.00% |
| CONSORCIO MINERO LUSO VARGAS C.A. (CONLUVAR) |
Av. La Armada, Edifício Centro Socialista Demivargas, Piso 4 1162 La Guaira – Catia La Mar |
49.00% |
| DOURO LITORAL, ACE | Edifício 8, Lagoas Park Porto Salvo |
40.00% |
| D.L.O.E.A.C.E. – Douro Litoral Obras | Edifício 2, Lagoas Park | 40.00% |
| Especiais, ACE ENGIL/MOTA/TEIXEIRA DUARTE |
Porto Salvo Av. Fabril do Norte, 1601 |
33.33% |
| – Requalificações Urbanas, ACE FERROVIAL/TEIXEIRA DUARTE - Obras |
Matosinhos Edifício Central Park |
50.00% |
| Hidráulicas do Alqueva, ACE GMP – Grupo Marítimo Português, ACE |
Rua Alexandre Herculano, Nº 3, 2º - Linda-a-Velha Edifício 1, Lagoas Park |
20,04% |
| GMP – Grupo Marítimo Português MEK, ACE | Porto Salvo Edifício 1, Lagoas Park |
20,04% |
| GPCC - Grupo Português de Construção de | Porto Salvo Rua Senhora do Porto, 930 |
25.00% |
| Infraestruturas de Gás Natural, ACE GPCIE - Grupo Português de Construção de |
Porto Edifício Sagres |
25.00% |
| Infraestruturas da Expo, ACE IMOC - Empreendimentos Imobiliários, S.A.R.L. |
Rua Professor Henrique de Barros, nº 4, 2 A - Prior Velho Av. 24 de Julho, 135 Maputo |
4.,92% |
| Limited Liability Company Cement | Khutorskya Str., 70 Odessa |
49.00% |
| METROLIGEIRO - Construção de Infraestruturas, ACE |
Estrada da Luz, 90 - 6º E Lisbon |
26.80% |
| NOVA ESTAÇÃO, ACE | Av. Frei Miguel Contreiras, nº 54, 7º Lisbon |
25.00% |
| RPK Gulfstream, Ltd. | Tri Ruchja str. 183003, Murmansk |
42.70% |
| SCP AK10 - Empreendimentos e Participações SPE Ltda. |
Avenida Alameda Santos, nº 960 - 19º, Edifício CYK, Cerqueira César, São Paulo |
25.00% |
| SOMAFEL/FERROVIAS, ACE | Av. Columbano Bordalo Pinheiro, 93 - 7º Lisbon |
36.00% |
| STELGEST - Gestão Hoteleira, S.A. | Edifício 2, Lagoas Park | 45.00% |
| TEIX.CO, SPA | Porto Salvo BP 62B Zone D'Active Dar El Beida Algiers |
48.78% |
| TEIXEIRA DUARTE - SOPOL - Metro Superfície, ACE |
Edifício 2, Lagoas Park Porto Salvo |
57.30% |
| holding | ||
|---|---|---|
| TEIXEIRA DUARTE/OPCA - Fungere – Parcela 1.18 do Parque das Nações em Lisboa - 3ª Fase – Empreitada de Acabamentos e Instalações Especiais dos Edifícios para o Hotel e Escritórios, ACE |
Edifício 2, Lagoas Park Porto Salvo |
60.00% |
| TRÊS PONTO DOIS - Trabalhos Gerais de Construção Civil, Via e Catenária de Modernização da Linha do Norte, ACE |
Av. das Forças Armadas, 125 - 2º C Lisbon |
50.00% |
The investments in associates showed the following movements during the quarters ended on 31 March 2014 and 2013 "Restated":
| Holdings | Goodwill | Total | |
|---|---|---|---|
| Balance as at 1 January 2013 | 40,155 | 11,703 | 51,858 |
| Effects of the application of the equity method: | |||
| - Effect on net income for the period (Note 9) | (326) | - | (326) |
| - Effect on equity | (76) | - | (76) |
| Currency conversion adjustments | 180 | - | 180 |
| Other | 366 | 3 | 369 |
| Balance as at 31 March 2013 | 40,299 | 11,706 | 52,005 |
| Balance as at 1 January 2014 | 24,768 | 11,693 | 36,461 |
| Effects of the application of the equity method: | |||
| - Effect on net income for the period (Note 9) | (5,900) | - | (5,900) |
| - Effect on equity | 2,671 | - | 2,671 |
| Increases | 865 | - | 865 |
| Currency conversion adjustments | (34) | 2 | (32) |
| Other | 2,535 | - | 2,535 |
| Balance as at 31 March 2014 | 24,905 | 11,695 | 36,600 |
The investments in associates and joint ventures as at 31 March 2014 and 31 December 2013 "Restated" are detailed as follows:
| 31/03/2014 | 31-12-2013 "Restated" | |||||
|---|---|---|---|---|---|---|
| Associates | Holdings | Goodwill | Value of financial position |
Holdings | Goodwill | Value of financial position |
| Limited Liability Company Cement (a) | 16,072 | 11,643 | 27,715 | 16,072 | 11,643 | 27,715 |
| IMOC - Empreendimentos Imobiliários, S.A.R.L. | 5,991 | - | 5,991 | 6,257 | - | 6,257 |
| RPK Gulfstream, Ltd. | 783 | - | 783 | 842 | - | 842 |
| Alvorada Petróleos, S.A. | 728 | - | 728 | - | - | - |
| SCP AK10 - Empreendimentos e Participações SPE Ltda. | 21 | 52 | 73 | 21 | 50 | 71 |
| Other | 1,310 | - | 1,310 | 1,576 | - | 1,576 |
| 24,905 | 11,695 | 36,600 | 24,768 | 11,693 | 36,461 |
(a) Financing loan of 16,072 thousand euros as at 31 March 2014 and 31 December 2013 "Restated".
The holdings referred to above are recorded through the equity method which, in the quarters ended on 31 March 2014 and 2013 "Restated", had the following impacts:
| 1st Q 14 | ||||
|---|---|---|---|---|
| Gains and losses in associates (Note 9) |
Adjustments of holdings |
Dividends | Total | |
| Alvorada Petróleos, S.A. | 4 | 60 | - | 64 |
| Limited Liability Company Cement | (5,324) | 2,583 | - | (2,741) |
| IMOC - Empreendimentos Imobiliários, S.A.R.L. | (621) | - | - | (621) |
| SCP AK10 - Empreendimentos e Participações SPE Ltda. | (1) | - | - | (1) |
| Other | 42 | 28 | - | 70 |
| (5,900) | 2,671 | - | (3,229) |
| Alvorada Petróleos, S.A. Limited Liability Company Cement |
4 | ||||
|---|---|---|---|---|---|
| 60 | - | 64 | |||
| (5,324) | 2,583 | - | (2,741) | ||
| IMOC - Empreendimentos Imobiliários, S.A.R.L. | (621) | - | - | (621) | |
| SCP AK10 - Empreendimentos e Participações SPE Ltda. | (1) | - | - | (1) | |
| Other | 42 | 28 | - | 70 | |
| (5,900) | 2,671 | - | (3,229) | ||
| 1st Q 13 "Restated" | |||||
| Gains and | |||||
| losses in | |||||
| associates | Adjustments | ||||
| Associates Alvorada Petróleos, S.A. |
(Note 9) (157) |
of holdings (21) |
Dividends - |
Total (178) |
|
| Limited Liability Company Cement | (137) | (56) | - | (193) | |
| IMOC - Empreendimentos Imobiliários, S.A.R.L. | 65 | 641 | - | 706 | |
| SCP AK10 - Empreendimentos e Participações SPE Ltda. | (2) | - | - | (2) | |
| Other | (95) | (640) | - | (735) | |
| (326) | (402) | ||||
| 16 - FINANCIAL ASSETS AVAILABLE FOR SALE During the quarters ended on 31 March 2014 and 2013, the movements which occurred in the valuation of the financial assets available for sale, stated at their respective fair value, were as follows: |
(76) | - | |||
| 2014 | 2013 | ||||
| Fair value as at 1 January | 84,613 | 48,597 | |||
| Increase in fair value | 20,986 | 7,346 | |||
| Fair value as at 31 March | 105,599 | 55,943 | |||
| As at 31 March 2014 and 31 December 2013, the Group held 357,000,000 shares of Banco Comercial Português, S.A., classified as financial assets available for sale. The financial assets available for sale, and their respective cost and market values, as at 31 March 2014 and 31 December 2013, are as follows: |
|||||
| 31/03/2014 | 31/12/2013 | ||||
| Cost value Market value Cost value | Market value | ||||
| Banco Comercial Português, S.A. Banco Bilbao Vizcaya Argentaria, S.A. |
717,321 35,958 |
81,039 24,560 |
717,321 35,958 |
59,405 25,208 |
| 2014 | 2013 | |
|---|---|---|
| Fair value as at 1 January | 84,613 | 48,597 |
| Increase in fair value | 20,986 | 7,346 |
| Fair value as at 31 March | 105,599 | 55,943 |
| 31/03/2014 | 31/12/2013 | ||||
|---|---|---|---|---|---|
| Cost value Market value Cost value | Market value | ||||
| Banco Comercial Português, S.A. | 717,321 | 81,039 | 717,321 | 59,405 | |
| Banco Bilbao Vizcaya Argentaria, S.A. | 35,958 | 24,560 | 35,958 | 25,208 | |
| 753,279 | 105,599 | 753,279 | 84,613 |
All situations which might significantly affect future taxes are stated through the application of the deferred tax rule.
During the quarters ended on 31 March 2014 and 2013, the movements which occurred in deferred tax assets and liabilities, in accordance with the temporary difference which generated them, were as follows:
| Deferred tax assets | Deferred tax liabilities |
||||
|---|---|---|---|---|---|
| 2014 | 2013 | 2014 | 2013 | ||
| Balance as at 1 January | 188,514 | 111,912 | 52,693 | 57,979 | |
| Constitution / Reversal | |||||
| Net income (Note 10) | 8,564 | 8,818 | 215 | 169 | |
| Equity | (4,906) | (942) | (192) | - | |
| Currency conversion effect and adjustments | 143 | (515) | 24 | 456 | |
| Balance as at 31 March | 192,315 | 119,273 | 52,740 | 58,604 |
Deferred tax assets are only recorded insofar as it is considered that taxable profits are likely to occur in future taxation periods which may be used to recover the tax losses or deductible tax differences. This assessment was based on the business plans of the Group's companies, periodically reviewed and updated, on the prospects of generating taxable earnings.
As of 1 January 2014, the deduction of tax losses in Portugal, including tax losses recorded in previous periods, is limited to 70% of the taxable profit for the year when this deduction is made.
The transactions and balances between "TD, S.A." and the Group's companies included in the consolidation perimeter, which are related parties, were eliminated in the consolidation process and are not disclosed in the present note. The balances and transactions between the Group and associates, joint ventures, related parties and individuals with significant voting rights and their own companies, are detailed below.
The terms or conditions applied between these related parties are, in substance, identical to those which would normally be contracted, accepted and applied between independent entities in comparable transactions.
The main balances with related entities as at 31 March 2014 and 31 December 2013 "Restated" are detailed as follows:
| Balance receivable | Balance payable | Loans granted | Other debts | |||||
|---|---|---|---|---|---|---|---|---|
| Entity | 31/03/2014 | 31-12-2013 "Restated" |
31/03/2014 | 31-12-2013 "Restated" |
31/03/2014 | 31-12-2013 "Restated" |
31/03/2014 | 31-12-2013 "Restated" |
| AEBT - Auto Estradas do Baixo Tejo, S.A. | - | - | - | - | 5,373 | 819 | - | - |
| AEDL - Auto Estradas do Douro Litoral, S.A. | - | - | - | - | 1,202 | 1,202 | - | - |
| ALSOMA, GEIE | - | - | - | 24 | - | - | - | - |
| AVIAS, ACE | - | 48 | - | - | - | - | - | |
| AVIA PORTUGAL, S.A. | - | - | - | - | - | - | - | |
| CINTEL - Construção Interceptor Esgotos, S.A. | 46 | 46 | - | - | 4 | 4 | - | - |
| CONBATE, ACE | 35 | 57 | - | - | - | - | - | 24 |
| Minero Luso Vargas Consortium - CONLUVAR | 2,793 | 4,783 | 358 | 779 | - | - | 3 | 6 |
| OPSUT 2010 Consortium | 1,414 | 1,560 | 424 | - | - | - | - | - |
| DOURO LITORAL, ACE | 71 | 50 | 62 | 61 | - | - | - | (102) |
| DOURO LITORAL OBRAS ESPECIAIS, ACE | 1 | - | - | - | - | - | (269) | (269) |
| EIA - Ensino de Investigação e Administração, S.A. | 9 | - | - | - | - | - | (324) | (324) |
| GMP - Grupo Maritimo Português, ACE | 70 | 58 | 10 | 10 | - | - | - | - |
| GMP – Grupo Marítimo Português MEK, ACE | 22 | 21 | - | - | - | - | - | - |
| GPCC - Grupo Português de Construção de Infraestruturas de | ||||||||
| Gás Natural, ACE | - | 79 | - | 59 | - | - | - | (48) |
| GPCIE - Grupo Português de Construção de Infraestruturas da | ||||||||
| Expo, ACE | - | - | - | - | - | - | - | (1) |
| IMOC - Empreendimentos Imobiliários, S.A.R.L. | 4,525 | 1,554 | - | - | - | - | (2,104) | (2,092) |
| Limited Liability Company Cement | 147 | - | - | - | 16,072 | 16,072 | - | - |
| LUSOPONTE - Concessionária para a Travessia do Tejo, S.A. | - | - | - | - | 150 | 150 | - | - |
| METROLIGEIRO - Construção de Infraestruturas, ACE | 20 | 14 | 1 | 1 | - | - | - | (2) |
| Moreira e Cunha, Lda. | 25 | 33 | - | - | - | - | - | (80) |
| MTS - Metro Transportes do Sul, S.A. | - | - | - | - | 740 | 740 | - | - |
| NOVA ESTAÇÃO, ACE | 805 | 1,005 | 35 | 35 | - | - | - | - |
| Promociones Inmobiliárias 3003, C.A. | - | 55 | - | - | - | - | (31) | (37) |
| RPK Gulfstream, Ltd. | - | - | - | - | 2,045 | 2,200 | - | - |
| SOMAFEL/FERROVIAS, ACE | - | 1 | - | - | - | - | - | - |
| STELGEST - Gestão Hoteleira, S.A. | - | 19 | - | - | - | - | (687) | (736) |
| TEGAVEN - Teixeira Duarte Y Asociados, C.A. | 4,729 | 6,106 | 794 | 1,349 | 82 | 139 | 37,269 | 68,521 |
| TEIX.CO SPA | 1,381 | 1,381 | 720 | 720 | - | - | (291) | (291) |
| TEIXEIRA DUARTE/OPCA - Fungere - Parcela 1.18 do Parque das Nações em Lisboa - 3ª Fase - Empreitada de Acabamentos e Instalações Especiais dos Edifícios para o Hotel e |
||||||||
| Escritórios, ACE | 65 | 64 | 11 | 6 | - | - | - | (2) |
| TEIXEIRA DUARTE - SOPOL - Metro Superfície, ACE | 24 | 17 | 71 | 54 | - | - | - | - |
| TRÊS PONTO DOIS - Trabalhos Gerais de Construção Civil, Via e | ||||||||
| Catenária de Modernização da Linha do Norte, ACE | - | 1 | 35 | 35 | - | - | - | (134) |
| NOVA ESTAÇÃO, ACE | ||||||||
| VSL Sistema de Pré-Esforço - Equipamento de Montagem, S.A. | - | - | 3 | - | - | - | - | - |
| 16,182 | 16,952 | 2,524 | 3,133 | 25,668 | 21,326 | 33,566 | 64,433 |
The main transactions carried out in the quarters ended on 31 March 2014 and 2013 "Restated", with related entities were as follows:
| Sales and services rendered | Purchases and services received | Interest debited | ||||
|---|---|---|---|---|---|---|
| 1st Q 14 | 1st Q 13 "Restated" |
1st Q 14 | 1st Q 13 "Restated" |
1st Q 14 | 1st Q 13 "Restated" |
|
| CONBATE, ACE | 60 | 67 | - | - | - | - |
| Minero Luso Vargas Consortium - CONLUVAR | 55 | 499 | 2,885 | 2,212 | - | - |
| OPSUT 2010 Consortium | 139 | 598 | 186 | 646 | - | - |
| DOURO LITORAL, ACE | 15 | 25 | 5 | - | - | - |
| GMP - Grupo Maritimo Português, ACE | 12 | - | - | - | - | - |
| GMP – Grupo Marítimo Português MEK, ACE | 1 | - | - | - | - | - |
| GPCC - Grupo Português de Construção de Infraestruturas de | ||||||
| Gás Natural, ACE | - | - | 2 | - | - | - |
| IMOC - Empreendimentos Imobiliários, S.A.R.L. | 2,329 | 5 | 62 | 21 | - | - |
| Limited Liability Company Cement | - | - | - | - | 442 | 442 |
| METROLIGEIRO - Construção de Infraestruturas, ACE | 5 | - | - | - | - | - |
| Moreira e Cunha, Lda. | 23 | 14 | - | - | - | - |
| STELGEST - Gestão Hoteleira, S.A. | 11 | 26 | 2 | - | - | 16 |
| SOMAFEL/FERROVIAS, ACE | - | 1 | - | - | - | - |
| TEIX.CO SPA | - | - | - | - | - | - |
| TEIXEIRA DUARTE/OPCA - Fungere - Parcela 1.18 do Parque das | ||||||
| Nações em Lisboa - 3ª Fase - Empreitada de Acabamentos e Instalações Especiais dos Edifícios para o Hotel e |
||||||
| Escritórios, ACE | 1 | - | 5 | - | - | - |
| TEIXEIRA DUARTE - SOPOL - Metro Superfície, ACE | 11 | 15 | 17 | - | - | - |
| TEGAVEN - Teixeira Duarte Y Asociados, C.A. | 29 | - | 73 | - | - | - |
| VSL Sistema de Pré-Esforço - Equipamento de Montagem, S.A. | - | - | 3 | - | - | - |
| 2,691 | 1,250 | 3,240 | 2,879 | 442 | 458 |
The remunerations of the members of the governing bodies of TD, S.A. for the quarters ended on 31 March 2014 and 2013 were as follows:
| 1st Q 14 | 1st Q 13 | |
|---|---|---|
| Executive directors: | ||
| Short term benefits | 214 | 177 |
| Supervisory board: | ||
| Short term benefits | 17 | 17 |
| Chartered accountant: | ||
| Short term benefits | 15 | 15 |
| 246 | 209 |
The remunerations of the members of the senior management staff of TD, S.A. for the quarters ended on 31 March 2014 and 2013 were as follows:
| 1st Q 14 | 1st Q 13 | |
|---|---|---|
| Senior staff: | ||
| Short term benefits | 1,573 | 1,811 |
| 1,573 | 1,811 |
As at 31 March 2014 and 31 December 2013 "Restated", this heading is broken down as follows:
| 31/03/2014 | 31-12-2013 "Restated" |
|
|---|---|---|
| Demand deposits | 124,071 | 134,088 |
| Term deposits | 32,772 | 34,104 |
| Other cash investments | 6,081 | 2,704 |
| Cash | 8,989 | 15,545 |
| 171,913 | 186,441 |
The heading of cash and cash equivalents includes cash, deposits repayable on demand, term deposits and cash investments with maturity of less than three months, repayable on demand and with insignificant risk of change of value.
The revenue derived from financial investments in the quarters ended on 31 March 2014 and 2013, refer to the divestment of holdings in the following entities:
| 1st Q 14 | 1st Q 13 | |
|---|---|---|
| Banco Bilbao Vizcaya Argentaria, S.A. | 10,654 | 5,642 |
| Banco Comercial Português, S.A. | - | 2,823 |
| Other | - | 219 |
| 10,654 | 8,684 |
The payments relative to financial investments in the quarters ended on 31 March 2014 and 2013, refer to the acquisition of holdings in the following entities:
| 1st Q 14 | 1st Q 13 | |
|---|---|---|
| Banco Bilbao Vizcaya Argentaria, S.A. | 10,965 | 5,680 |
| AEBT - Vias do Baixo Tejo, S.A. | 4,554 | - |
| Other | 84 | 274 |
| 15,603 | 5,954 |
The dividends received in the quarters ended on 31 March 2014 and 2013, were as follows:
| 1st Q 14 | 1st Q 13 | |
|---|---|---|
| CPM - Companhia de Parques de Macau, S.A.R.L. | 137 | 213 |
| Banco Bilbao Vizcaya Argentaria, S.A. | - | 375 |
| LUSOPONTE - Concessionária para a Travessia do Tejo, S.A. | - | 392 |
| Other | - | 166 |
| 137 | 1,146 |
As at 31 March 2014 and 2013, the underwritten and paid-up share capital was represented by 420,000,000 shares with the nominal value of 0.50 euro each.
As at 31 March 2014, TEIXEIRA DUARTE - Sociedade Gestora de Participações Sociais, S.A. directly held 197,950,000 shares representing the share capital of TEIXEIRA DUARTE, S.A., corresponding to 47.13% of its share capital.
Legal reserve: Pursuant to the current legislation, the Company is obliged to transfer at least 5% of its annual net income to the legal reserve, until it reaches at least 20% of the share capital. This reserve is not distributable to the shareholders, but may be used to absorb losses, after all the other reserves have been depleted, or incorporated in the share capital.
Fair value reserve: The fair value reserve arises from the difference between the cost value and market value of the financial assets available for sale, not yet recognised in the income statement.
Free reserves: The free reserves are available for distribution.
Hedge operation reserve: The hedge operation reserve reflects the effective component (net of the tax effect) of net changes in the fair value of derivative financial instruments classified as cash flow hedges.
As at 31 March 2014 and 31 December 2013, the following loans had been raised:
| 31/03/2014 | 31/12/2013 | |
|---|---|---|
| Non-current liabilities: | ||
| Bank loans a) | 199,765 | 209,200 |
| Commercial paper b) | 471,722 | 471,780 |
| 671,487 | 680,980 | |
| Current liabilities: | ||
| Bank loans a) | 632,310 | 569,278 |
| Commercial paper b) | 62,500 | 112,348 |
| 694,810 | 681,626 | |
| 1,366,297 | 1,362,606 |
As at 31 March 2014, the domestic bank loans, bank overdrafts and pledged current accounts earned interest at the weighted annual average rate of 4.83% (3.74% as at 31 March 2013).
As at 31 March 2014, the most significant bank loans contracted by the Group essentially correspond to:
Loan raised from Banco Caixa Geral (Spain), contracted on 11 February 2008 of the present value of 15,820 thousand euros, which will fall due on 11 February 2016.
Loan raised from Caixa Banco de Investimento, S.A. and Caixa Geral de Depósitos, S.A., contracted on 21 February 2008 of the present value of 47,276 thousand euros, which will be repaid in 40 equal and successive instalments, ending on 10 December 2033.
Loan raised from Banco BIC de Angola, contracted on 20 October 2008 of the present value of 1,815 thousand euros, which will fall due on 27 November 2014.
Loan taken out by the Group at Caixa Geral de Depósitos, S.A. on 30 December 2008, of the present value of 34,329 thousand euros, which will be repaid in 117 equal and successive monthly instalments, ending on 30 December 2023.
Loan raised from Banco Fomento de Angola, contracted on 6 February 2009 of the present value of 272 thousand euros, which will fall due on 30 September 2014.
Loan raised from Banco Caixa Geral Totta Angola, contracted on 21 December 2011 of the present value of 14,715 thousand euros, which will fall due on 28 February 2019.
Loan raised from Banco Espírito Santo de Investimento, S.A., contracted on 29 December 2011, of the present value of 1,352 thousand euros, which will fall due on 27 November 2015.
Loan raised from Banco Bradesco, S.A., contracted on 27 March 2012 of the present value of 8,034 thousand euros, which will fall due on 27 November 2015.
Loan raised from Banco BPI, S.A., contracted on 19 July 2012 of the present value of 2,139 thousand euros, which will fall due on 19 July 2015.
Loan raised from Banco BIC de Angola, contracted on 9 October 2012 of the present value of 11,940 thousand euros, which will fall due on 5 December 2019.
Loan raised from Banco BIC de Angola, contracted on 9 October 2012 of the present value of 26,513 thousand euros, which will fall due on 13 December 2019.
Loan raised from Banco Privado Atlântico, contracted on 12 October 2012 of the present value of 20,135 thousand euros, which will fall due on 18 October 2017.
Loan raised from Banco Popular Portugal, S.A., contracted on 13 December 2012, of the present value of 5,419 thousand euros. The present principal will be repaid over the contract period, and in accordance with the table of agreed haircuts, by the product of the sale of the mortgaged real estate properties, with the remainder being settled through bullet repayment on 13 December 2015.
Factoring line from Banco Espírito Santo, S.A. of the amount of 35,000 thousand euros, which is being used to the value of 34,887 thousand euros.
Under a credit line from Caixa Geral de Depósitos, S.A. of the amount of 35,000 thousand dollars of the United States of America, for advances on revenue from invoices relative to exports, which is used to the value of 19,456 thousand dollars.
Under a Commercial Discount Line abroad (advance of credit letters), at Banco Espírito Santo, S.A. of the amount of 40,000 thousand euros, which is being used to the value of 19,466 thousand euros as at 31 March 2014.
As at 31 March 2014 and 31 December 2013, the bank loans also include pledged current accounts of the value of 492,449 and 453,408 thousand euros, respectively.
As at 31 March 2014, the Group had negotiated the following commercial paper programmes:
Programme for the placing and underwriting of commercial paper commercial paper, contracted with Banco Comercial Português, S.A. on 18 August 2008, of 20,000 thousand euros, with annual renovation. The interest is earned in arrears, with the rate being indexed to the three-month Euribor plus a spread of 5.75% determined according to each issue date.
Programme for the placing and underwriting of commercial paper commercial paper, contracted with Banco Comercial Português, S.A. on 18 August 2008, of 25,000 thousand euros, with annual renovation. The interest is earned in arrears, with the rate being indexed to the three-month Euribor plus a spread of 5.75% determined according to each issue date.
Grouped programme, for the placing and underwriting of commercial paper contracted with Caixa Geral de Depósitos, S.A. on 7 July 2010, to the sum of 70,000 thousand euros, in which TEIXEIRA DUARTE - Engenharia e Construções, S.A. and its associate TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A. take part, with the entire amount being used by TEIXEIRA DUARTE - Engenharia e Construções, S.A. The participation of each company in each programme may vary each time it is used. The programme was reduced to 60,000 thousand euros on 28 April 2011 and renewed on 11 May 2012 for a further 3 years counted as of 14 April 2012. The current amount is 50,000 thousand euros, with another repayment of 10,000 thousand having been established for 14 May 2014. The interest is earned in advance on each subscription date, with the intervention rate being indexed to the Euribor for the respective period, in force on the second business day prior to each subscription date, plus 5.25% and determined in accordance with the date of each auction.
Programme for the placing and underwriting of commercial paper contracted with Banco Espírito Santo Investimento, S.A. and Banco Espírito Santo, S.A. on 28 December 2010, of the amount of 34,000 thousand euros, in which TEIXEIRA DUARTE - Engenharia e Construções, S.A. participates. The programme had an initial use of three years, which was extended up to 28 January 2015 counted as of the contract signing date. The interest is earned in advance on each subscription date, with the intervention rate being indexed to the Euribor for the respective period, in force on the second business day prior to each subscription date, plus 3% and determined in accordance with the date of each auction.
Grouped programme for the placing and underwriting of private commercial paper contracted on 14 January 2011 with Banco Comercial Português, S.A., with the total amount used being 20,750 thousand euros, in which TEIXEIRA DUARTE - Engenharia e Construções, S.A. and its associate TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A. take part, to the amounts of 18,650 thousand euros and 2,100 thousand euros, respectively. The participation of each company in the programme may vary each time the programme is used, with TEIXEIRA DUARTE - Engenharia e Construções, S.A. being required to participate with at least 10% of the total value. The duration of the programme is five years, starting from the contract signing date, the interest is earned on a six-monthly basis in arrears, with the reference rate being indexed to the one to sixmonth Euribor under competitive auction for periods of 7 to 180 days via direct placement, increased by 4.375% and determined according to the date of each auction, with the repayment of the last issue being made on 6 January 2016.
Grouped programme for the placing and underwriting of commercial paper contracted on 28 December 2011, with Banco Comercial Português, S.A. of the total amount of 43,000 thousand euros, currently 36,000 thousand euros, in which TEIXEIRA DUARTE, S.A., TEIXEIRA DUARTE - Engenharia e Construções, S.A. and TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A. take part, where on this date the amounts used by each were 250 thousand euros, 250 thousand euros and 35,500 thousand euros, respectively. Each of the future issues must necessarily be carried out together by all the issuers and the participation of each issuer cannot be less than 250 thousand euros. The programme may be used over seven years counted as of the date of the first issue, with repayments being foreseen at the end of each semester at increasing values between 2,000 thousand euros and 6,500 thousand euros. The applicable interest rate is the Euribor for each issue period, in force on the second business day prior to its beginning, increased by a spread of 4.25%.
Grouped programme for commercial paper issues, contracted on 6 November 2013 with Banco Espírito Santo, S.A. and Banco Espírito Santo de Investimento, S.A., of the value of 100,000 thousand euros, in which Teixeira Duarte - Gestão de Participações e Investimentos Imobiliários, S.A. and Teixeira Duarte – Engenharia e Construções, S.A. participate, with the amounts of 90,000 thousand euros and 10,000 thousand euros, respectively. The participation of each company in the programme may vary in each of its issues. The duration of the programme is five years, counted as of the contract signing date, with the interest falling due in advance and the reference rate being indexed to the Euribor for the respective period, in force on the second business day prior to each subscription date, plus a spread of 5.00% and determined according to the date of each auction, with the repayment of the last issue being on 6 November 2018. The Programme will be subject to partial repayments, to occur on a semi-annual basis as of May 2015 of 1,500 thousand euros, as of May 2016 of 2,000 thousand euros, and the penultimate instalment being in May 2018 of 2,500 thousand euros.
Grouped programme for commercial paper issues, contracted on 30 December 2013 with Banco Espírito Santo, S.A. and Banco Espírito Santo de Investimento, S.A., of the value of 203,000 thousand euros, granted by the issuers Teixeira Duarte – Engenharia e Construções, S.A. and Teixeira Duarte - Gestão de Participações e Investimentos Imobiliários, S.A., and by the guarantors TEDAL – Sociedade Gestora de Participações Sociais, S.A., Teixeira Duarte – Engenharia e Construções, S.A., Quinta de Cravel – Imobiliária, S.A. and V8 – Gestão Imobiliária, S.A., which is being fully used by Teixeira Duarte – Engenharia e Construções, S.A.. The participation of each company in each programme may vary in each of its issues. The duration of the programme is five years minus 1 day, counted as of the contract signing date, with the interest falling due in advance and the reference rate being indexed to the Euribor for the respective period, in force on the second business day prior to each subscription date, plus a spread of 5.00% and determined according to the date of each auction, with the repayment of the last issue being on 29 November 2018. The Programme will be subject to partial repayments, to occur on a semi-annual basis as of April 2014 of 1,250 thousand euros, on December 2015 of 8,000 thousand euros, and as of June 2016 of 5,000 thousand euros.
As at 31 March 2014 and 31 December 2013, the repayment of non-current bank loans is defined as follows:
| 31/03/2014 | 31/12/2013 | |
|---|---|---|
| 2015 | 168,908 | 164,209 |
| 2016 | 67,685 | 82,051 |
| 2017 | 46,778 | 46,190 |
| 2018 | 318,113 | 323,461 |
| 2019 and following | 70,003 | 65,069 |
| 671,487 | 680,980 |
As at 31 March 2014 and 31 December 2013, the funding in foreign currency was expressed as follows:
| Currency | 31/03/2014 | 31/12/2013 | |||
|---|---|---|---|---|---|
| Currency | Euro | Currency | Euro | ||
| Venezuelan Bolivar | 968,637 | 65,656 | 409,000 | 47,134 | |
| US Dollar | 45,418 | 32,940 | 80,572 | 58,423 | |
| Moroccan Dirham | 691 | 62 | - | - | |
| Angolan Kwanza | 14,436,881 | 107,740 | 12,754,485 | 94,764 | |
| South African Rand | 1,218 | 84 | 1,117 | 77 | |
| Brazilian Real | 45,304 | 14,485 | 40,487 | 12,428 |
The loans denominated in foreign currency earn interest at market rates and were converted into euros based on the exchange rate as at the reporting date.
Following various inspections conducted by the Taxation and Customs Authority (AT) to the accounts of TEIXEIRA DUARTE - Gestão de Participações Investimentos Imobiliários, S.A. ("TDGPII, S.A."), a company 100% held indirectly by TEIXEIRA DUARTE, S.A. relative to the financial years of 2007 to 2011, the following corrections were made to the tax losses that had initially been reported for this participated company:
| Calculated | AT | |
|---|---|---|
| Year | tax loss | Correction |
| 2007 | 46,632 | 29,331 |
| 2008 | 50,590 | 45,938 |
| 2009 | 50,182 | 24,807 |
| 2010 | 18,165 | 6,467 |
| 2011 | 12,779 | 3,213 |
With the exception of the amount of 611 thousand euros included in the correction to the tax loss for 2008 (relative, according to the AT, to the undue application of number 10 of article 22 of the EBF to the distribution of income by the TDF Real Estate Investment Fund), these corrections arise entirely from the non-acceptance, as a tax cost, of the financial costs incurred with the investment made in participated companies under the form of additional paid-in capital.
Since "TDGPII S.A." is subject to corporate income tax (IRC) in accordance with the special taxation scheme for groups of companies (RETGS) (article 69 and following of the IRC Code), the corrections to the tax losses of the financial years of 2008 and 2009 were the object of Statements of Payment of IRC and compensatory interest issued to the controlling company, TEIXEIRA DUARTE - Engenharia e Construções, S.A., which filed judicial reviews at the Administrative and Fiscal Court of Sintra.
During 2013, "TD-EC, SA", as the controlling company, was notified of the Report of Conclusions for the financial year of 2010 and consequent additional Statements of Payment of IRC and compensatory interest associated to the corrections for the financial year of 2010. The Company is currently preparing the corresponding objection, considering the applicable legal periods.
Notwithstanding the unfavourable outcome to the claims of "TDGPII, S.A." and, consequently, the controlling company, under the proceedings relative to the financial year of 2006, the Board of Directors continues to expect a different outcome for the other financial years under court proceedings.
It should be noted that the Statement of Payment of IRC and compensatory interest for the financial year of 2008 issued to "TD-EC, S.A.", as the controlling company, apart from the corrections described above relative to the participated company "TDGPII, S.A.", also includes a correction to the taxable profit calculated at an individual level for "TD-EC, S.A.".
The total amount of corrections to taxable profit reached 35,467 thousand euros, of which "TD-EC, S.A." objected to 32,595 thousand euros, related to tax credit, the system of re-investment of tax gains and the undue application of number 10 of article 22 of the EBF.
The correction relative to the financial year of 2011 for the participated company "TDGPII, S.A." had not been the object of any additional payment required by the controlling company, as at the closing date of March 2014.
As at 31 March 2014 and 31 December 2013 "Restated", the group of companies included in the consolidation had provided the following guarantees to third parties:
| 31/03/2014 | 31-12-2013 "Restated" |
||
|---|---|---|---|
| Bank guarantees provided | 309,353 | 326,831 | |
| Fidelity insurance | 295,811 | 379,078 |
The bank guarantees were essentially provided for the effect of tenders, advances received and as a completion bonds for works.
TEIXEIRA DUARTE - Engenharia e Construções, S.A., EPOS - Empresa Portuguesa de Obras Subterrâneas, S.A., SOMAFEL - Engenharia e Obras Ferroviárias, S.A., OFM - Obras Públicas, Ferroviárias e Marítimas, S.A., RECOLTE, Serviços e Meio Ambiente, S.A., RECOLTE, Servicios y Medioambiente, S.A.U., EMPA - Serviços de Engenharia, S.A. and the Boyacá - La Guaira Consortium, have provided completion bonds in order to guarantee the good implementation of works and services rendered.
In order to secure the loan contract signed with Banco Caixa Geral, S.A., of the present value of 15,820 thousand euros, granted by RECOLTE, Servicios y Medioambiente, S.A.U., RECOLTE, Servicios y Medioambiente, S.A.U. pledged 2,400,000 shares of Banco Bilbao Vizcaya Argentaria, S.A.
A mortgage was also constituted in favour of Caixa Geral de Depósitos, S.A. on lot 3, situated in Lagoas Park, owned by TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A., to secure a loan contract granted by TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A. of the present value of 34,329 thousand euros.
In order to secure a contract signed with Banco Caixa Totta Angola, of the present value of 14,715 thousand euros, URBANGO - Gestão Imobiliária, Lda. mortgaged a property owned by it, number 256 - 1st section, located in Chicala.
In order to secure a contract signed with BIC, of the present value of 26,513 thousand euros, ANGOIMO - Empreendimentos e Construções, Lda. mortgaged a property owned by it, number 2554, located in Samba.
In order to secure a contract signed with BIC, of the present value of 11,940 thousand euros, ANGOIMO - Empreendimentos e Construções, Lda. mortgaged a property owned by it, number 2554, located in Samba.
In order to secure a loan contract signed with Banco BPI, S.A., of the present value of 2,139 thousand euros, TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A. mortgaged 12 fractions of the property located at Campo Grande, number 9 in Lisbon.
In order to secure the commercial paper contract signed on 28 December 2011 with Banco Comercial Português, S.A., of the present value of 36,000 thousand euros, granted by TEIXEIRA DUARTE, S.A., TEIXEIRA DUARTE - Engenharia e Construções, S.A. and TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A., constituted a general mortgage on the properties implanted respectively on lots 6, 18 and 19, located in Lagoas Park, owned by TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A.
In order to secure the loan of the present value of 5,419 thousand euros, signed with Banco Popular Portugal, S.A. on 13 December 2012, granted by TEIXEIRA DUARTE - Engenharia e Construções, S.A., TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários S.A., QUINTA DE CRAVEL - Imobiliária, S.A. and V8 - Gestão Imobiliária, S.A., V8 - Gestão Imobiliária, S.A. mortgaged their fractions owned of the urban property located on Rua de Castro Portugal, numbers 497 and 511; Rua Professora Rita Lopes Ribeiro Fonseca, numbers 28, 34, 40, 46, 52, 58, 64, 70, 76, 80, 94 and 96; and Rua Doutor Miguel Assunção Lopes, number 15, Locality and Parish of Vila Nova de Gaia, as well as the fractions of the urban property called lot 14, located on Rua Guilherme Duarte Camarinha, numbers 30, 38, 42, 48, 54, 62, 70 and 74, and Rua Professora Rita Lopes Ribeiro Fonseca, numbers 12 and 18, Locality of Candal, Parish of Vila Nova de Gaia, for the total value of 5,419 thousand euros.
Apart from the guarantees indicated above, the following pledges have also been provided:
In order to secure the commercial paper contract signed with Banco Espírito Santo Investimento, S.A. and Banco Espírito Santo, S.A. of the value of 46,000 thousand euros, granted by TEIXEIRA DUARTE - Engenharia e Construções, S.A. and TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A., TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A. and TEDAL - Sociedade Gestora de Participações Sociais, S.A. pledged 325,000,000 and 32,000,000 shares of Banco Comercial Português, S.A., respectively.
In order to secure the commercial paper contract signed with Banco Espírito Santo Investimento, S.A. and Banco Espírito Santo, S.A. of the value of 203,000 thousand euros, granted by TEIXEIRA DUARTE - Engenharia e Construções, S.A. and TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A., TEDAL – Sociedade Gestora de Participações Sociais, S.A. pledged 12,500,000 shares of EPOS – Empresa Portuguesa de Obras Subterrâneas, S.A., 200,000.000 shares of C+P.A. – Cimentos e Produtos Associados, S.A., and TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A. pledged 1,325,000 participation units of the TDF Closed Real Estate Investment Fund. TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A. constituted a voluntary mortgage on an urban property it owns, destined for warehouses, workshops, materials laboratory and parking of equipment, located on Avenida da Indústria, Alto Estanqueiro - Jardia, Montijo, of the value of 15,516 thousand euros. QUINTA DE CRAVEL – Imobiliária, S.A. also mortgaged the lots for construction numbers 8, 10, 11, 12, 13, 19, 26 and 31, located at Quinta de Cravel, Mafamude, Vila Nova de Gaia, for the total value of 6,839 thousand euros. V8 – Gestão Imobiliária, S.A. mortgaged the lots for construction numbers 1, 2, 3, 5, 6, 8 and 16, 18, 20 and 30 located at Empreendimento Santa Maria Design District, Santa Marinha, Vila Nova de Gaia, for the total value of 30,079 thousand euros.
In order to secure the commercial paper contract signed with Caixa Geral de Depósitos, S.A. of the value of 70,000 thousand euros, currently 50,000 thousand euros, granted by TEIXEIRA DUARTE - Engenharia e Construções, S.A. and TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A., TEIXEIRA DUARTE - Gestão de Participações e Investimentos Imobiliários, S.A. pledged 4,550,000 participation units of the TDF Closed Real Estate Investment Fund. As at the date of the present report, the programme was being entirely used by TEIXEIRA DUARTE – Engenharia e Construções, S.A.
In order to secure the commercial paper contract signed with Banco Espírito Santo de Investimento, S.A. and Banco Espírito Santo, S.A., of the value of 34,000 thousand euros, granted by TEIXEIRA DUARTE - Engenharia e Construções, S.A., TEDAL - Sociedade Gestora de Participações Sociais, S.A. pledged 500,000 shares of TDGI - Tecnologia de Gestão de Imóveis, S.A.
In order to reinforce the guarantees provided under the financial lease contract signed on 31 December 2008 with Banco Comercial Português, S.A., TEDAL - Sociedade Gestora de Participações Sociais, S.A. pledged 9,000,000 shares of SOMAFEL - Engenharia e Obras Ferroviárias, S.A.
In order to secure debts to third parties, of the value of 560 thousand euros, IMOTD - SGPS, S.A. pledged 24,000 shares of V8, S.A.
In order to secure the loan contract granted by TDHOSP - Gestão de Edifício Hospitalar, S.A. of the present value of 47,276 thousand euros, TEIXEIRA DUARTE - Engenharia e Construções, S.A. pledged to Caixa Geral de Depósitos, S.A. and Caixa Banco de Investimentos, S.A., 1,540,000 shares of TDHOSP - Gestão de Edifício Hospitalar, S.A. Under the same loan contract, TEIXEIRA DUARTE - Engenharia e Construções, S.A., as shareholder, pledged the credit rights over TDHOSP – Gestão de Edifício Hospitalar, S.A.
As at 31 March 2014 and 2013, the comfort letters provided by TEIXEIRA DUARTE, S.A. and its subsidiaries reached 448,613 thousand euros and 475,758 thousand euros, respectively.
As at 31 March 2014 and 31 December 2013, factoring contracts without right of recourse were in force, which were recorded as reduction of accounts receivable of the value of 87,458 thousand euros and 99,829 thousand euros, respectively. Pursuant to the contractual conditions, the Group's liability is essentially restricted to the guarantee of acceptance on the part of customers of the invoices which are the object of factoring.
As at 31 March 2014 and 31 December 2013, there were no inventories pledged to secure liabilities.
The table below presents the Group's assets and liabilities measured at fair value as at 31 March 2014, according to the following hierarchical levels of fair value:
Level 1: the fair value of financial instruments is based on lending net market prices as at the reference date of the statement of financial position;
Level 2: the fair value of financial instruments is not determined based on lending net market prices, but rather through use of valuation models;
Level 3: the fair value of financial instruments is not determined based on lending net market prices, but rather through use of valuation models whose main inputs are not observable on the market;
| Category | Item | Level 1 | Level 2 | Level 3 |
|---|---|---|---|---|
| Assets: | ||||
| Financial assets available for sale | Shares | 105,599 | - | - |
| Financial assets at fair value through profit or loss | Shares | 618 | - | - |
| Investment properties | Buildings and land | - | 478,742 | - |
| Liabilities: | ||||
| Financial liabilities at fair value | Hedge derivatives | 12,590 | - | - |
Except with respect to non-current loans, most financial assets and liabilities mature in the short term, hence it is considered that their fair value is identical to the respective book values.
Most of the loans are taken out at variable interest rates. Therefore, it is deemed that the corresponding book value (amortised cost) does not differ significantly from the respective market value.
The financial statements for the quarter ended on 31 March 2014 were approved by the Board of Directors on 30 May 2014.
TEIXEIRA DUARTE pursued its activity in the different sectors and markets in which it operates, where the following relevant fact which occurred after the closing of the first quarter of 2014, which was disclosed in due time to the market:
On 2 April 2014, the enterprise group which includes "Teixeira Duarte - Engenharia e Construções, S.A." was notified of the Service Order issued by the Algerian entity "AGA- Algérienne de Gestion des Autoroutes" for the contract "Réalisation des Installations et Equipements d'Exploitation de l'autoroute Este-Ouest, Lot Ouest" (Execution of facilities and equipment for the operation of the East-West Motorway, West Lot), in Algeria.
"Teixeira Duarte - Engenharia e Construções, S.A." is the leader of the enterprise group, holding a stake of 48%, with 46% belonging to the Algerian enterprise group "ETRHB HADDAD" and 6% to the Spanish "SICE, S.A.".
The contract has a foreseen period of twenty-three months counted from the aforesaid 2 April 2014 and an overall value of € 253,645,332 (two hundred and fifty-three million, six hundred and forty-five thousand and three hundred and thirty-two euros), increased by VAT at the legal rate in force, of which 35.7% is paid in euros and the remaining 64.3% in Algerian dinar. Pursuant to its share in the aforesaid enterprise group, "Teixeira Duarte - Engenharia e Construções, S.A." is entitled to receive € 121,749,760 (one hundred and twenty-one million, seven hundred and forty-nine thousand and sixty euros).
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