CONSOLIDATED 1 ST QUARTER REPORT. Non Audited

Transcrição

1 CONSOLIDATED 1 ST QUARTER REPORT 2009 Non Audited 1

2 SAG GEST Soluções Automóvel Globais, SGPS,SA Listed Company Registered Share Capital: EUR 169,764,398 Taxpayer no Registered at the Amadora Registrar of Companies under no Headquarters: Estrada de Alfragide, nº Amadora Offices: Alfrapark Edifício SGC, Piso Amadora Tel: Fax: investor.relations@sag.pt Web: 2

3 MANAGEMENT REPORT CONSOLIDATED ACCOUNTS 1 st Quarter

4 1. BUSINESS ACTIVITIES 1.1. Automotive Retail In a market that was significantly affected by the current economic environment where the drastic reduction in private consumption is taking on disturbing proportions with a contraction of 42% vs. the same period in the previous year, SIVA s volume, although naturally affected, benefited from the advantages derived from the solid image and good positioning of its Makes in the eyes of the Portuguese Consumer, as well as from a favorable product dynamics. The 33.6% drop recorded in the number of cars registered by SIVA was significantly lower than the decrease in the market and resulted in a significant gain in terms of market share. Indeed, SIVA ranked first in the first three months in 2009 in terms of sales of Light Passenger Vehicles (LPV) with a 14.39% market share (12.13% in March 2008), corresponding to a sales volume of 4,573 units in the Volkswagen, Audi and Skoda makes. The contributions by Volkswagen (whose market share was 8.5%, 1.1% more than in the 1 st Quarter of 2008) and Audi (which achieved a 4.4% market share, a 1.5% gain versus the same period in 2008) were crucial to the volumes and shares recorded by SIVA. In the light commercial vehicles (LCV), excluding passenger derivatives, SIVA s market share was 5.54% (6.30% in the same period last year), with 277 registered vehicles. In the light vehicle market (LPC + LCV), with a total of 4,886 units sold, SIVA increased its overall market share from 10.63% in the 1 st Quarter of 2008 to 12.18% in the 1 st Quarter 2009, rising to the first place in the relevant ranking. The models launched during 2008, namely VW s Tiguan, Golf Variant and new Golf, as well as Audi s A4 and the A4 Avant models, and Skoda s Fabia Break, were a significant contribution to the volumes achieved by SIVA. It is also worth pointing out the fact that, in spite of a 33.6% reduction in sales, SIVA s turnover only declined 17.6% when compared to the value recorded in the 1st Quarter in 2008 as a result of improvements in the product mix. In the area of Automotive Retail, the Soauto dealer network sold 830 new vehicles in the 1st Quarter of 2009 (6.2% less than in the same period in 2008), and 436 used cars (a 19.5% increase vs. sales in the 1st Quarter of 2008). Volumes in 2009 already include sales originating at Loures Automóveis, which only joined Grupo SAG on 1 August Automobile Services a) Portugal In the Renting business in Portugal, which is conducted through Santander Consumer Multirent, results achieved show an increase of approximately 7.1% in the number of new contracts when compared with previous the year, and a portfolio of 11,259 units (+4.9% vs. the end of the 1 st Quarter 2008), and to million (+2.5%) in financed capital. In the Car Auctioning (Remarketing) business, Manheim Portugal saw an increase of approximately 10% in the number of vehicles sold during the 1 st Quarter in b) Spain In Spain, the Santander Consumer Iber-Rent affiliate had, at the end of the 1 st Quarter 2009, a portfolio of 15,554 cars corresponding to a total of 224 million in financed capital. 4

5 c) Poland Santander Consumer Multirent, Sp Zoo s portfolio totaled approximately 1,300 contracts. d) Brazil Business conducted in Brazil through Unidas saw moderate growth in the 1st Quarter of 2009, as a result of the implementation of strategic reorientation measures adopted in 2008 with the aim to privilege profitability. Therefore, in the Renting business, the number of contracts in portfolio (including the franchise business) totaled 21,404, representing an 8.3% increase vs. the volume at the end of the previous year. Financed capital totaled 596 million Brazilian Reals (+12.9% vs. the total in portfolio on 31 March 2008). In the Rent-a-Car business, the total number of rental days was 312 thousand, representing an increase of approximately 40.5% vs the previous year. Unidas s turnover recorded an increase, in Euros, of approximately 16.5% vs. the total for the same period in 2008, which naturally reflects the increased business due both to the increase in the Renting portfolio and particularly due to the significant increase in the Rent-a-Car volume End-of-Life Vehicle Recycling (ELV) Ecometais, a company acquired by SAG in the 2nd Half of 2007 operating in recycling of end-of-life vehicles and other type of metal residue, processed approximately 14 thousand tons of raw materials during the 1st Quarter of RESULTS FOR THE 1 ST QUARTER OF 2009 The adverse macroeconomic environment framework generally affected all the markets in which SAG does business. Consolidated Turnover in the 1st Quarter of 2009 was million, 14,6% less than the amount recorded during the same period in Turnover originating in Unidas increased by 16.5% which, however, proved to be insufficient to offset the drop in revenue from business conducted in Portugal which, particularly due to the behaviour of the automotive market, showed an 19.5% decline vs. totals achieved in the same period in the previous year. EBITDA for the period was 17.3 million representing a 10.5% increase vs. the 1st Quarter of 2008, and growth from Unidas s contribution is particularly worth highlighting, as well as the results from cost containment measures implemented in all Group areas and resulted in a 3.5% reduction in consolidated operating expenses. EBIT (earnings before interest and taxes) declined 8.6% vs. the result achieved in the 1st Quarter last year, due to the recognition of capital losses in the sale of semi-new and used cars by Unidas following a continued deterioration of conditions in the Brazilian market for this type of vehicles. In addition, and in order to reduce Unidas s exposure to the risk of a continued worsening of these conditions, an additional commercial effort was undertaken resulting in the sale of approximately 3,600 vehicles, a volume which was 28.4% higher than in the 1st Quarter of SAG s consolidated result in the 1st Quarter of 2009 was 1.4 million negative and was highly affected by the Consolidated Financial Result which showed, overall, a year-on-year increase in expenses of approximately 3.7 million, mainly due to Unidas s increased debt as a result of the growth of its fleet vs. the volume as at 31 March

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7 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED ACCOUNTS 1 st Quarter

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12 NOTES TO THE FINANCIAL STATEMENTS CONSOLIDATED ACCOUNTS 1 st Quarter

13 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1st Quarter GENERAL INFORMATION REGARDING THE GROUP S ACTIVITY The accounts are consolidated in Portugal. Grupo SAG, of which SAG Gest Soluções Automóvel Globais SGPS, SA (SAG GEST SGPS SA) is the parent company, comprises Companies operating in various business areas in Portugal, Spain, Brazil and Poland, namely in automobile distribution and retail trade, in Portugal, of the Volkswagen, Audi, Skoda, Bentley and Lamborghini makes, sale of used multi-brand cars, preparation of new cars and bodywork repairs, Operational Vehicle Rental medium to long term car rental products and services, maintenance contracts, rent-a-car services as well as insurance brokerage. SAG GEST SGPS SA is a holding Company with headquarters in Estrada de Alfragide, 67 Alfragide, Amadora. 2. SUMMARY OF THE MAIN ACCOUNTING POLICIES 2.1 Bases for preparation The Consolidated Financial Statements include the accounts of SAG GEST SGPS SA and its affiliates where it holds a direct and majority stake or controls management. The Financial Statements of these Companies were integrated through the integral consolidation method with the exception of Santander Consumer Iber-Rent SL, Santander Consumer Multirent, Sp.z.o.o., Autolombos, Lda., CRE SGPS e Manheim, Lda., where the equity equivalence method was used. The SAG consolidated financial statements were prepared in accordance with the interim financial reporting standard (IAS 34), and all other International Financial Reporting Standards (IFRS) issued by International Financial Reporting Interpretations Committee (IFRIC), as adopted by the European Union. All amounts shown in the Notes herein are expressed in euros, except where otherwise stated. 13

14 3. GEOGRAPHICAL SEGMENTS The following chart represents the Revenue, Net Profit achieved and assets as at 31 March 2009 and 31 March 2008, in the geographical segments: 4. CONSOLIDATION PERIMETER During the 1st Quarter of 2009 there were no significant changes in the consolidation perimeter. The companies that integrate the perimeter are the same ones that in December 2008, with exception of the 5 Automotive Retail companies 100% held by SAG that had been merged in one entity. Castelimo, Justocar, Cervag, Cercascais and JM Seguro were merged into a new Company named Soauto Comércio de Automóveis S.A. This merger was made with Tax neutrality and didn t have any impact on the Consolidated Financial Statements. 5. OVERHEADS AND VARIABLE EXPENSES The Overheads and Variable Expenses for the 3 month period ended in 31 March 2009 and 2008 are detailed as follows: 14

15 6. FINANCIAL INCOME AND EXPENSES The Financial Income and Expenses for the 3 month period ended in 31 March 2009 and 2008 are detailed as follows: 7. INCOME TAX The estimate for Income Tax recorded in the Consolidated Financial Statement accrued until 31 March 2009 and 2008 is as follows: 15

16 8. EARNINGS PER SHARE As at 31 March 2009, Grupo SAG had 16,771,015 treasury stocks. The nominal value of SAG stock is 1 each. 9. INVESTMENT IN AFFILIATES During the 1st Quarter of 2009 there were no significant changes in this caption. 10. BANK DEBT During the 1st Quarter of 2009 there were no significant changes in this caption. There are no new loans neither have occurred meaningful changes in loans, regarding their conditions and maturities. 11. DERIVATIVE FINANCIAL INSTRUMENTS The Derivative financial instruments held by SAG as of 31 March 2009 are exactly the same as at 31 December The fair value of the derivatives as of 31 March 2009 is negative in During the 1 st Quarter of 2009 the valuation of the Derivatives at the fair value originated a loss of

17 12. CASH AND CASH EQUIVALENTS Cash and Cash Equivalents are detailed as follows: 13. RELATED PARTY DISCLOSURES In addition to the balances between, and the transactions performed with Companies included in Consolidation which were eliminated during the preparation of the Consolidated Financial Statements, there are other balances and transactions performed with related parties, namely: Entity Nature of Transaction Amount of transactions conducted during the period SGC S.G.P.S., S.A. Interest Volpe Ltda. Participações Exchange Options BRL On 31 March 2009, Unidas had established exchange options with Volpe Participações Ltda. In the total amount of BRL million. These options contracts aimed to eliminate exchange rate fluctuation risks as mentioned in Note COMMITMENTS AND CONTINGENCIES Guarantees In comparision to the balances as of 31 December 2008, no significant changes have occurred in this caption. Contingencies In comparision to the balances as of 31 December 2008, no significant changes have occurred in this caption. 25. SUBSEQUENT EVENTS No events have taken place after the Balance Sheet date that could have a material impact on the financial statements. 17