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REPORT AND ACCOUNTS
2016
5
INDEX
MESSAGE 5
REPORT AND ACCOUNTS 9
PARTICIPATION 15
BALANCE SHEET 19
INCOME STATEMENT 23
CASH FLOW STATEMENT 27
STATEMENT OF CHANGES IN EQUITY 31
ANNEX TO THE FINANCIAL STATEMENTS 35
REPORT AND SOLE SUPERVISOR OPINION 61
LEGAL CERTIFICATION OF ACCOUNTS 65
INTERNATIONAL 69
Project: Belavista_ House and Real Estate. V.N. Famalicão Client: Pontalta ( Real Estate)
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MESSAGE(1/2)
Project: Expansion of the Orthopedic Hospital Sant’Ana - Parede. LisboaClient: Santa Casa da Misericórdia de Lisboa
In 2016, the strategic guidelines set by the company three years ago were strengthened.In Portugal, the company had to resort to the private market to achieve the turnover needed to overcome the almost non-existent public investment, and specifically by means of works of greater technical complexity.In the external market, the company diversified its geographies to attract investments with a better margin and a better guarantee of payments ensured by credible and sustainable institutional multilateral entities supporting developing countries. Internally, we must highlight the execution of a highly challenging and iconic project, which was the Construction of the New Plant (steel industry) for the SAKTHI multinational company. This large scale project of over 35 000 m2 of construction, with an aesthetically bold architectural project from architect Alexandre Burmester, had a very tight deadline – 10 months - and the simultaneous intervention of three other heavy equipment supply companies from several countries (powerful overhead cranes, electric furnaces, dedusting network, etc). The work awarded in April 2016 had to be concluded in February 2017 and we were requested that the virtual start-up of the plant and the cast of the first part be in December 2016. These deadlines were all met.In Portugal, most of our projects are concentrated in the industrial construction, hotel projects and urban regeneration areas. While it is acknowledged that the construction sector in Portugal accelerated more in 2016, we cannot forget how low the level used for the comparison is. Concrete consumption is below the number of 30 years ago and the number of housing construction is only about 10% of what it was at the beginning of this century. It has been tourism, in Lisbon and to a much lesser extent in Oporto, which has almost exclusively boosted hotel construction projects and building recovery projects. The attraction of foreign investment in property will probably keep increasing and thus this sector will probably continue with very high levels of activity. With the beginning of the new European Funding Framework, the 2020 Program, some public projects of great impact were expected, such as renewing the rail network, as well as projects which belonged to the PETI3+ Program and which were already ongoing. This has not taken place yet and funding is still very low and aimed mainly at low-level Engineering projects.
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Project: SakthiClient: Sakthi Portugal SP21, S.A
MESSAGE(2/2)
The fact that this situation has been ongoing for some years is causing the loss of competencies in the most prominent construction companies which used to compete on equal terms in external markets with foreign companies. If this situation does not turn around, we may even lose eligibility conditions for international tenders.It is thus urgent that the needed procedures – study, projects, tenders – to develop works become faster.In the end of 2016 and in the external market, our company was awarded an important project in Honduras, in the amount of approximately 84 000 000 USD. This comprises the construction of two sets of national roads with approximately 75 km, a work funded by RIB (European Investment Bank) and BCIE (Central American Bank for Economic Integration). It is the company’s first project in Latin America.In Africa, we won the first work in Senegal, in the city of Dakar, as well as the second project in Zambia. Besides those countries, we continue our activity in Cape Verde, Angola and Mozambique.As we mentioned in the 2015 Report, African markets have been strongly impaired by the suffocating competition from the Chinese companies whose setting of prices is far from being understood by the economic logic. It is by applying to projects backed by multilateral entities imposing criteria of greater transparency regarding the company’s corporate nature and price credibility that Gabriel Couto will seek to flourish.In 2017 we expect a turnover in line with the one reached in 2016, being that the International part will increasingly gain greater prominence.We appreciate all those who have supported us, from our collaborators and particularly those in distant lands and who, sometimes in harsh environments, promote not only our company’s know-how but also the Portuguese Engineering. Likewise, we acknowledge bank entities that have supported us particularly with regard to the internationalization effort, as well as all our suppliers.Lastly, a word of recognition to our clients for the trust they have placed in our company by entrusting us with projects which are very important for their activity, duties and businesses.
Project: Expansion of the Orthopedic Hospital Sant’Ana - Parede. LisboaClient: Santa Casa da Misericórdia de Lisboa
REPORT AND ACCOUNTS
2016
12
REPORT AND ACCOUNTS 2016 (1/2)
1. MANAGEMENT REPORT
In accordance with the applicable legal and statutory requirements, we present the Management Report and Accounts that reflect the economic and financial activity of our company during the financial year of 2016.
1.1 MACROECONOMIC AND SECTORIAL FRAMEWORKThe world economic growth is still quite fragile and the world GDP increase in 2016 is of only 2.3% which will be the weakest increase since the year of the great recession (2009).
The Portuguese economy slowed down when compared to 2015, with a 1.4% growth, which was slightly lower than the previous year. This slowdown was particularly felt during the first semester due to an investment slump and the international trade weakness, with the exception of the tourism sector. The second half of the year was considerably more positive. The last quarter even recorded an increase in consumption and a similar and quarterly recovery of investment. Despite this growth dynamics of the last months, a reduction of 0.3% in investment when compared to the previous year was not avoided. In 2016, the unemployment rate was of 11.1%, the lowest since the 10.8% recorded in 2010. Regarding the inflation rate, there was a slight increase to 0.6%.
Despite the recovery that occurred the last quarter of 2016, and specifically a recovery within residential buildings, the Construction sector production decreased 3.3%. This negative annual evolution resulted in a decrease of 4.4% when compared to the previous year which also reflects the decrease in the construction investment and GAV.
Despite this annual negative evolution, there was an increase in the construction employment (+4.5%), the no. of housing permits (+37.5%) the area
licensed for housing (+30.8%) and non-residential (+24%), as well as the value of public work contracts (+16.2%).
One of the factors contributing to this improvement was the strong increase of new operations to acquire housing (+44.3%) which were partially neutralized by the credit decreases to construction entities (-11.9%).
1.2 THE COMPANY’S PERFORMANCE IN 2016 In 2016, the company totalled 91.4 M€ in sales and service provision, of which 35.4 M€ in the external market (38.7% of the total).
Amounts in eurosTurnover 2016National 56,0Exports (Branches) 35,4Mozambique 22,2Swaziland 4,8Cape Verde 5,8Zambia 2,5Total 91,4
The sales and services provision increased approximately 0.3% when compared to 2015.
Considering the limited public investment in Portugal, the results obtained as turnover stem from a bet on the construction private market, and specifically on industrial units, logistic infrastructures and hotel units. As relevant works, we highlight the industrial unit of SAKTHI, IKEA, APDL, Metropolitano de Lisboa, Continental Mabor, Embraer, among others.
The external market significant presence was maintained. In Mozambique, we continued the construction of important works for ANE – Agência Nacional de Estradas, the Maputo Municipal Council,
13
the Corredor de Desenvolvimento do Norte (CDN), among others. In Zambia, at the end of the previous year, we started an important drainage work for a client for whom we had previously develeoped high quality works in Mozambique, the Millennium Challenge Account, a support entity present in several countries with lack of infrastructures, namely in Africa. In Cape Verde, we are still working on the construction of 390 social housing for the Cape-Verde Ministry of Housing.
HUMAN RESOURCESIn average, the staff was comprised of 234 workers, of which 33 are posted in different countries where we develop our activity, mainly in Mozambique.
In addition to these national employees, the company employs approximately 426 employees from the different geographic areas where we are working in abroad.
One of the company’s concerns is that all these employees are ministered training sessions to reinforce their competences and give them new ones in order to continuously improve the performance and the quality of the work delivered.
QUALITY, SAFETY AND ENVIRONMENT POLICIESThe company has Quality, Safety and Environment policies duly set and certified by APCER.
This is one of the company’s administration guideline and commitment as its members are aware of their importance as a tool for the company’s success.
BRIEF ECONOMIC AND FINANCIAL ANALYSISIn 2016, the exploitation indicators have remained steady in terms of sales volume and service provision (91.4 M€) and EBITDA, except the non-recurrent key factors (8.9M€).
Due to the disposal of Scut Algarve e Norte
shareholdings, which implied a gains reversal in shareholdings in subsidiaries of 1.9 M€ (in 2015) for a loss of 0.4M€ (in 2016) and the recognition of clients impairments of 1.2M€, there was an impact of 3.5M€ in EBITDA. This effect was partially diluted due to the level of activity and an important decrease of net financial expenditure which allowed a positive net result of 1.6 M€.
(Amount in M€) 2014 (Annual) 2015 (Annual) 2016 (Annual)
Income(Tunover)
94,9 91,1 91,4
ME* andImpairments
6,1 1,9 -1,6
EBITDA 15,9 10,6 7,3
FinancialResults
-6,3 -4,4 -3,5
Net Income 6,0 2,6 1,6
* EM: Equity Method
Regarding financial indicators, note the reinforcement of the financial autonomy (16.8 M€) and overall liquidity (1.30).
Financial Autonomy / Overall Liquidity
In 2016, the investment was approximately of 0.5M€, and mainly in equipment modernization.
1,32
1,30
1,28
1,26
1,24
1,22
1,2014,0% 14,5% 15,0% 15,5% 16,0% 16,5% 17,0%
OVE
RA
LL L
IQU
IDIT
Y
FINANCIAL AUTONOMY
2016
2014 2015
14
RELEVANT FACTS AFTER THE END OF THE FINANCIAL YEARAfter the end of the financial year no relevant facts took place that would materially affect this report.
SITUATION IN TERMS OF STATE AND SOCIAL SECURITYThe company has fulfilled all its obligations with the State and Social Security.
1.3 PERSPECTIVES FOR YEAR 2017The company’s perspective for the near future and specifically 2017 is based on its order book.
On 31/12/2016, this order book totalled approximately 98 million euros, and was reinforced at the beginning of 2017 with 75 million euros with the Honduras operation, thus totalling 173 million euros.
In geographical terms, as a result of the internationalization markets diversification strategy, the order works portfolio develops across three continents.
Amounts in M€Works Portfolio 2016National 35,1Exports 137,8Mozambique 28,9Swaziland 1,3Cape Verde 0,9Zambia 23,5Senegal 8,0Honduras 75,2Total 172,9
Roads and Infrastructures are the main activity with 139.9 million euros while the civil construction activity is worth approximately 33 million euros.
In the end of 2016, we were awarded important works in Portugal which will be very relevant in 2017, such as the logistic units for APDL and Torrestir and the hotel units for Vila Galé and Marec. Internationally, we would like to highlight the road infrastructures in Honduras and Senegal and the water infrastructures in Zambia.
1.4 OTHER RELEVANT INFORMATION The company has no branches in the national territory. Abroad, the company has the following branches:
Construções Gabriel A.S.Couto, SA - Zambia branch Construções Gabriel A.S.Couto, SA - Cape Verde branchConstruções Gabriel A.S.Couto, SA - Swaziland branchConstruções Gabriel A.S.Couto, SA - Mozambique branch
During the economic period, there was no acquisition or disposal of equity. The entity holds own shares in the amount of 500,000.00€.
No business operations took place between the company and its board members.
These were not granted any loans or advances on the account of profit.
The entity is not exposed to financial risks that might produce relevant and material effects to its financial position and the continuity of its operations. Decisions taken by the management body were based on the rules of prudence and thus the entity believes that the obligations undertaken do not create risks which cannot be supported by the entity.
REPORT AND ACCOUNTS 2016 (2/2)
1.5 ACKNOWLEDGEMENTSWe acknowledge the effort and collaboration of all the Company’s Collaborators, Clients, Suppliers and Financial institutions which have collaborated with us, as we are aware that without their assistance, the difficulties would have been greater and the performance of lower quality.
We acknowledge the remaining Corporate Bodies and especially the Sole Supervisor and the Chartered Account for their commitment to the company..
1.6 PROPOSAL FOR APPROPRIATION OF RESULTSPursuant to the legal and statutory terms, we propose that the net result of 2016 in the amount of 1,620,105.37 Euros be applied under Retained Earnings.
In accordance to the company’s policy for the past years, no profit distribution to shareholders will take place in order to consolidate the company’s Equity.
Vila Nova de Famalicão, May 16, 2017
Board of Directors,
Project: Warehouse Construction of lot 13 of Pole 2 of the Logistics Platform of LeixõesClient: APDL - Administration of Ports of Douro, Leixões and Viana do Castelo, SA
©Jo
ão M
orga
do
PARTICIPATION
Project: High School Frei Gonçalo Azevedo, LisboaClient: Parque Escolar, E.P. E (National Schools Administration)
18
PARTICIPATION OF THE MANAGEMENT AND SUPERVISORY BODIES IN THE SHARE CAPITAL OF CONSTRUÇÕES GABRIEL A. S. COUTO, S.A..
Pursuant and for the purposes of article 447 of the Code of Commercial Companies, the number of shares listed by each holder on December 31, 2016 is as follows:
BOARD OF DIRECTORS:
Carlos Alberto Freitas Couto 93 340 sharesAntónio Gabriel Freitas Couto 93 330 sharesAvelino Jorge da Silva Oliveira 93 330 shares
No other member of the Management and Supervisory bodies declared having or having had shares or bonds from CONSTRUÇÕES GABRIEL A. S. COUTO, S.A. in 2016.
19
In compliance with article 448 of the Code of Commercial Companies, the following is the list of shareholders who hold at least one tenth of the share capital of the Company:
Maria da Conceição Ferreira de Freitas 539 320 share (53,93%)
Vila Nova de Famalicão, May 16, 2017
Board of Directors,
LIST OF SHAREHOLDERS WHO HOLD AT LEAST ONE TENTH OF THE SHARE CAPITAL OF CONSTRUÇÕES GABRIEL A.S. COUTO, S. A.
BALANCE SHEETON DECEMBER 31, 2016
Project: Warehouse Construction of lot 13 of Pole 2 of the Logistics Platform of LeixõesClient: APDL - Administration of Ports of Douro, Leixões and Viana do Castelo, SA
22
euros
ITEMS NOTESPERIODS
2016 2015ASSETS
Non-current assets
Tangible fixed assets 7, 8 and 12 5 219 107,42 8 295 484,99
Investment properties 6 and 12 645 500,00 514 720,81
Intangible assets 5 and 12 88 975,22 88 975,22
Financial shareholdings - equity method 10,11 and 13 551 096,39 5 955 616,14
Other financial investments 10, 11 and 13 850 777,76 896 879,00
Assets per deferred taxes 3.2.11 29 815,34 61 165,21
7 385 272,13 15 812 841,37
Current assets
Inventories 14 3 425 541,30 3 844 048,55
Clients 19 54 689 152,45 46 359 837,94
Advances to suppliers 597 468,63 1 724 298,62
State and other public entities 24 793 059,78 775 953,79
Other accounts receivable 19 14 606 444,07 12 576 220,88
Deferrals 22 274 106,07 307 037,57
Cash and bank deposits 4 10 962 233,80 23 686 071,66
85 348 006,10 89 273 469,01
Total assets 92 733 278,23 105 086 310,38
23
euros
ITEMS NOTESPERIODS
2016 2015EQUITY AND LIABILITIES
EQUITY
Subscribed capital 23 5 000 000,00 5 000 000,00
Own shares (parts) (500 000,00) (500 000,00)
Legal reserves 1 000 000,00 1 000 000,00
Other reserves 9 610 110,19 9 610 110,19
Results carried forward 16 230 819,62 18 405 593,02
Adjustments to financial assets (18 604 186,10) (22 150 222,16)
Revaluation surplus 1 265 006,32 1 263 824,81
14 001 750,03 12 629 305,86
Net result for the period 1 620 105,37 2 562 756,53
15 621 855,40 15 192 062,39
Total equity 15 621 855,40 15 192 062,39
LIABILITIES
Non-current liabilities
Provisions 17 171 119,26 232 695,84
Loans obtained 21 3 524 430,81 5 396 443,52
Liabilities per deferred taxes 3.2.11 18 342,50 474 751,00
Other payables 20 7 686 529,36 9 743 951,27
11 400 421,93 15 847 841,63
Current liabilities
Suppliers 20 23 521 544,05 22 091 962,47
Advances from clients 20 7 589 549,38 7 474 439,39
State and other public entities 24 2 361 086,51 1 771 064,01
Loans obtained 21 17 471 117,25 22 618 175,81
Other payables 20 5 850 476,90 8 187 689,75
Deferrals 22 8 917 226,81 11 903 074,93
65 711 000,90 74 046 406,36
Total liabilities 77 111 422,83 89 894 247,99
Total equity and liabilities 92 733 278,23 105 086 310,38
Certified Accountant Board of Directors
INCOME STATEMENTBY NATURE AT DECEMBER 312016
Project: Carmo Convent RecoveryClient: Municipality of Torres Novas
26
Project: Jardins da Ponte _ House and Real Estate. V.N. Famalicão Client: Pontalta ( Real Estate)
euros
REVENUES AND EXPENSES NOTESPERIODS
2016 2015
Sales and services provided 16 91 397 087,71 91 100 374,92
Gains / losses attributed to subsidiaries, associates and joint ventures 25 (366 384,55) 1 929 379,89
Change in production inventories 26 25 336,33 (957 579,42)
Cost of goods sold and materials consumed 27 (16 955 871,78) (15 931 668,61)
External supplies and services 28 (60 639 431,46) (58 777 133,29)
Expenses with Staff 29 (10 934 985,52) (11 396 242,74)
Bad debt expenses (losses / reversals) (1 228 666,41) --
Provisions (increases / reductions) 17 69 125,54 (75 165,49)
Fair value increases / reductions 30 284 755,39 (222,60)
Other revenues 31 7 830 781,10 11 295 811,60
Other expenses 31 (2 145 492,68) (6 631 169,65)
Earnings before depreciation, funding expenses and taxes 7 336 253,67 10 556 384,61
Expenses / reversals of depreciation and amortization 5,6, 7 e 12 (1 679 997,36) (2 560 226,25)
Operating earnings before depreciation, expenses and taxes 5 656 256,31 7 996 158,36
Interest and similar income obtained 32 175 346,94 804 563,13
Interest and similar expenses paid 32 (3 743 490,60) (5 233 316,90)
Earnings before taxes 2 088 112,65 3 567 404,59
Income tax of the period 18 (468 007,28) (1 004 648,06)
Net result for the period 1 620 105,37 2 562 756,53
Certified Accountant Board of Directors
27
CASH FLOW STATEMENTOF THE PERIOD ENDING DECEMBER 31, 2016
Project: SakthiClient: Sakthi Portugal SP21, S.A
30
euros
ITEMS NOTESPERIODS
2016 2015
Cash flow of operating activities - direct method
Receivables from Clients 69 059 584,34 91 452 631,89
Payments to Suppliers (76 144 163,93) (19 364 226,60)
Payments to staff (6 461 017,16) (7 647 196,09)
Cash generated by operations (13 545 596,75) 64 441 209,20
Payments / receivables from income tax (713 746,43) (227 067,27)
Other receivables / payments 7 549 557,95 (40 938 150,75)
Cash flow of operating activities (1) (6 709 785,23) 23 275 991,18
Cash flow of investment activities
Payments related to:
Tangible fixed assets (521 072,70) (2 181 499,31)
Intangible assets -- --
Financial investments -- (4 994,36)
Other assets -- --
Receivables from:
Tangible fixed assets 104 500,00 985 944,19
Intangible assets -- --
Financial investments 4 957 028,67 100 000,00
Other assets -- --
Investment grants -- --
Interest and similar income 175 346,94 804 563,13
Dividends 32 706,33 516 550,05
Cash flow of investment activities (2) 4 748 509,24 220 563,70
31
euros
ITEMS NOTESPERIODS
2016 2015
Cash flow of funding activities
Receivables from:
Loans obtained -- --
Capital increases and other equity instruments --
Loss coverage -- --
Donations -- --
Other funding operations -- --
Payments related to:
Loans obtained (7 019 071,27) (5 375 762,27)
Interest and similar expenses (3 743 490,60) (5 233 316,90)
Dividends -- --
Capital decreases and other equity instruments -- --
Other funding operations -- --
Cash flow of funding activities (3) (10 762 561,87) (10 609 079,17)
Changes in Cash and Equivalents (1+2+3) (12 723 837,86) 12 887 475,71
Effect of changes in exchange rates -- --
Cash and its Equivalent at the beginning of the period 23 686 071,66 10 798 595,95
Cash and its Equivalent at the end of the period 10 962 233,80 23 686 071,66
Certified Accountant Board of Directors
STATEMENT OF CHANGES IN EQUITYCHANGES IN EQUITY FOR 2016CHANGES IN EQUITY FOR 2015
Project: IkeaClient: IKEA Centres Portugal
CHAN
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0
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDEDDECEMBER 31, 2016
Project: Contract of Blue Line Extension and Finishes of Reboleira Station – Lisbon SubwayClient: Metropolitano de Lisboa, E.P.E
38
(Amounts in Euros)
1. ENTIFICATION OF THE ENTITY
1.1 CORPORATE NAME: Construções Gabriel A. S. Couto, SA
1.2 HEAD OFFICE: Rua S. João de Pedra Leital, 10004770 -464 Vila Nova de Famalicão
1.3 TYPE OF ACTIVITY: Civil construction and public works.
2. ACCOUNTING STANDARDS FOR THE FINANCIAL STATEMENTS PREPARATION
2.1 The Financial Statements of Construções Gabriel A. S. Couto, SA (Gabriel Couto) were prepared on a going concern basis of the operations and based on the historic cost and they reflect the company income of its operations and its financial situation during the financial year ending 31/12/2016.
The financial statements of Gabriel Couto have been prepared based on the assumption of continuity and on the accounting records and pursuant to Accounting Standardisation System (SNC) governed by the following legal texts:
- Decree-Law no. 158/2009, of July 13, with the wording given by Decree-Law no. 98/2015, of June 2 (Accounting Standardisation System), - Ordinance no. 220/2015, of July 24 (Financial Statements Models);- Notice no. 8254/2015, of July 29 (Conceptual Structure);- Notice no. 8256/2015, of July 29 (Accounting and Financial Report Standards);- Ordinance no. 218/2015, of July 23 (Code of Accounts);
The main accounting policies adopted by the Entity
to prepare the attached financial statements are the ones described below and were consistently applied to the financial years stated, except regarding investment proprieties.
To prepare the attached financial statements, estimates and assumptions were made that affect the implementation of accounting policies and the value of the assets, liabilities, expenses and revenues. All estimates and assumptions were made based on the historical experience and the best knowledge available at the time of approval of the financial statements, events and ongoing transactions.
2.2 No derogations to the SNC provisions were made, thus there were no consequences to the Financial Statements of the entity.
2.3 There are no contents that affect the accounts of the Balance Sheet and the Income Statement that are not comparable to the previous period.
3. MAIN NEEDED ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS
3.1 BASES FOR THE PRESENTATIONThe attached financial statements were prepared according to the bases of presentation of financial statements (BADF). The statements are expressed in euros as it is the operational and presentation currency.
3.1.1 Going concern assumptionWithin the scope of the going concern assumption, the entity assessed the information available and its future expectations considering the entity’s ability to proceed with its business. The assessment showed that the business is able to continue its operations.
3.1.2 Accrual basis assumptionThe financial statements elements are recognized when they satisfy the definitions and recognition
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (1/12)
39
criteria pursuant to the conceptual structure, regardless of the time of payment or collection.
3.1.3 Consistency of presentationThe presentation and classification of items in the financial statements is retained from one period to the next.
3.1.4 Materiality and aggregationThe materiality depends on the dimension and nature of the omission or error, assessed within the circumstances around it. Omissions or incorrect reporting of items are materially relevant if, individually or collectively, they are able to influence the economic decisions taken by the users based on the financial statements. An item that is nor materially relevant to justify its separated presentation in the financial statements can nevertheless be materially relevant for it to be individually presented in the notes of this annex.
Financial statements result from processing large numbers of transactions or other events that are aggregated into classes according to their nature or function The final stage in the process of aggregation and classification is the presentation of condensed and classified data, which form line items on the face of the balance sheet, income statement, statement of changes in equity and cash flow statement, or in the notes.
3.1.5 OffsetAssets and liabilities, revenues and expenses are not offset, except if required or allowed by a Standard. Thus, the revenue must be measured taking into account the amount of any trade discounts and volume rebates. The entity undertakes other transactions that do not generate revenue but are incidental to the main revenue generating activities.
The results of such transactions are presented, when this presentation reflects the substance of the transaction or other event, by netting any
income with related expenses arising on the same transaction.
Gains and losses arising from a group of similar transactions are reported on a net basis, for example, gains and losses from exchange differences or gains and losses from financial instruments held for negotiation. If materially relevant, these gains and losses are reported separately.
3.1.6 Comparative InformationComparative information is disclosed in respect of the previous period for all amounts reported in the financial statements. Comparative information was included for narrative and descriptive information when it was relevant to an understanding of the current period’s financial statements, unless a standard allowed or required differently.
Narrative information provided in the financial statements for the previous period(s) continues and which is still relevant in the current period is disclosed again.
The comparison of the information of several periods is ongoing as it helps users allowing them to make economic decisions and assess trend in the financial information to make forecasts.
3.2 RECOGNITION AND MEASUREMENT POLICIES
3.2.1 Tangible fixed assets Tangible fixed assets are stated at acquisition cost, less the accumulated corresponding depreciations and losses per impairment.
Depreciations are calculated, after the date on which the goods are available to be used, by the straight-line method in accordance to the estimated useful life period for each group of goods.
40
The depreciation rates used correspond to the following estimated useful life (in years):
Buildings and other constructions 10 to 50 Basic equipment 3 to 15Transport equipment 4 to 10Office equipment 4 to 10
3.2.2 Intangible assetsIntangible assets are stated at acquisition cost, less the accumulated corresponding amortizations and losses per accrued impairment.
Amortizations are calculated, after the date on which the goods are available to be used, by the straight-line method in accordance to the estimated useful life period.
3.2.3 Investment propertiesInvestment properties are comprised of land and buildings whose purpose it to obtain rents and/or the valuation of the capital invested and not to be used in production or the supply of goods or services or for administrative purposes or to be sold during the business current activities.
Investment properties are recorded at their fair value calculated according to the enforceable current prices in the market in question.
Changes in investment properties fair value are recognized directly in the income statement of the financial year under the item change of value in investment properties. Costs incurred with investment properties used, namely, maintenance, repairs, insurance and taxes on properties (Municipal Tax on Real Estate) are recognized in the income statement of the period concerned.
3.2.4 LeasesLeasing operations are classified as financial or
operational leases in accordance to their substance and not their legal form. Financial leases are operations in which the risks and rewards of ownership of an asset are transferred to the lessee.
All remaining leasing operations are classified as operational leases.
Operational leases
Payments made pursuant to operational lease contracts are stated in the item expenses of the periods concerned.
Financial leases
Tangible fixed assets acquired under the financial lease regime are stated at their value under the asset and the corresponding responsibility under the liability.
Depreciations of these goods were carried out in accordance to point 3.2.1 and stated under the depreciation expenses of the period.
The part of the capital included in the rents paid is deducted to the amount of the stated responsibility recorded in the liability, being the interests there included accounted for as financing expenses of the period.
3.2.5 Financial investments Purchases and sales of financial investments are recognized on the dates of the transaction. They are initially stated at acquisition value, which is the fair value of the price paid, including transaction expenses.
The company performs an evaluation when there is evidence that the asset might be in impairment, being the losses per impairment stated as cost under the income account when there is proof that they exist.
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (2/12)
41
Financial investments in the group’s companies and associates are stated at acquisition cost, being their value adjusted by the equity method later, and at the end of each period, except in situations stated in notes 9 and 10.
3.2.6 InventoriesMerchandises, raw materials and consumables are valued at either acquisition cost or net realizable value, whichever is lower. The cost method used in the movement of raw materials and consumables is the average weighted cost.
Finished products, semi-products and work in progress are valued at either production cost or net realizable value, whichever is lower.Production costs include the cost of incorporated raw material, direct labour and general manufacturing costs. The cost method is the average cost.
3.2.7 Third Party Payables and Receivables Third party receivables and payables are stated at their nominal value since they usually do not bear interests.
3.2.8 Cash and cash equivalents The amounts under Cash and equivalents correspond to cash flow, bank deposits and term deposits that can be readily released on demand.
3.2.9 LoansLoans are stated under Liability at their nominal value. Financial charges with interests and similar charges are stated in the income statement in accordance to the accruals basis for the financial year.
3.2.10 Provisions Provisions are recognized, only and when, the company has a current (legal or implicit) obligation resulting from a past event, being probable that the resolution of that obligation will imply an exit of
resources and the amount of the obligation can be reasonably estimated. Provisions are reviewed on the date of each balance sheet date and adjusted in order to reflect the best estimate on that date.
3.2.11 Income tax The Charge related to «Income tax of the period» represents the sum of current tax plus the deferred tax.
The Current tax is calculated on the basis of the taxable results of the company in accordance with the tax rules in force, while deferred taxes are the temporary differences between the figures for assets and liabilities for the purposes of financial reporting (carrying amount) and the respective amounts for taxation purposes (tax basis).
Assets and liabilities per deferred taxes are calculated and periodically evaluated using the tax rates in force or announced to be in force on the expectable date of the temporary differences.
Assets per deferred taxes are only recognized when it is probable that future tax profits shall be enough for their use or when there are taxable temporary differences that compensate the taxable temporary differences of the reversal period.
At the end of each period, a revision of the deferred tax is performed, being the latter decreased whenever their future use is no longer probable.
Deferred taxes are stated as charge or income of the financial year, except if they are the result of amounts directly recorded under equity, case in which the deferred tax is also stated under the same item.
Assets per deferred taxes are provisions and total 29.815,34 €.
42
Liabilities per deferred taxes are:
3.2.12 Recognition of income and expenses Financial statements are prepared in accordance to the accrual basis accounting (periodization). By means of this accounting method, the effects of transactions and other events (income or charges) are recognized when they occur, no matter the date they were received or paid, being stated in the accounting under items Deferrals and stated in the financial statements of the periods to which they are related to.
For the recognition of income or charges of construction contracts, the completion percentage method was used. In accordance to this method, the income directly related to the work in progress is recognized in the income statement according to its completion percentage, which is determined by the ratio between incurred costs up to the balance sheet date and total estimated costs of the works.
3.2.13 Contingent assets and liabilities Contingent assets are not recognised in the company’s financial statements, but they are disclosed when it is likely that there will be a future economic inflow.
Contingent liabilities are not recognised in the company financial statements, but they are disclosed.
3.2.14 Judgements and estimatesIn preparing the financial statements, the company made a number of estimates and assumptions that affect the assets, liabilities, income and expenses stated. All estimates and presuppositions were made by the management body based on best knowledge of ongoing events and transactions on the date of the financial statements approval.
Estimates were determined based on the best information available on the date of the preparation of the income statement and based on the best knowledge and experience of passed and/or current events. Nevertheless, subsequent situations can take place that are not predictable on that date and that were thus not taken into account in these estimates. Changes to these estimates that occur after the date of the financial statement, will be prospectively corrected in the income statement.
4. CASH FLOW
For purposes of the Cash Flow Statement, Cash and its equivalents include cash, demand bank deposits and are as follows:
2015 2016
Item Assets per deferred taxes
Liabilities per deferred taxes
Assets per deferred taxes
Liabilities per deferred taxes
Provisions 61 165,21 29 815,34
Revaluation reserves 10 365,87 9 184,36
Financial Gains Profits to be allocated
464 385,13 9 158,14
61 165,21 474 751,00 29 815,34 18 342,50
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (3/12)
43
(amounts in euros)
Item 31.12.2016 31.12.2015
Cash 101 525,40 123 343,89
Readily convertible bank deposits 1 745 538,71 9 342 021,51
Term deposit 9 115 169,69 14 220 706,26
Cash and Equivalents 10 962 233,80 23 686 071,66
5. INTANGIBLE ASSETS
During the period that ended December 31, 2015 and 2016, the operations that occurred in the amounts of intangible assets, as well as in the corresponding accumulated amortisations, were as follows:
Year 2015 Initial balance Increases Disposals / Transfers
Exchange Differences Final balance
Gross amounts
Computer software 479 052,89 0,00 0,00 0,00 479 052,89
Others 0,00 88 975,22 0,00 0,00 88 975,22
TOTAL 479 052,89 88 975,22 0,00 0,00 568 028,11
Accrued amortizations
Computer software 473 165,60 5 887,29 0,00 0,00 479 052,89
TOTAL 473 165,60 5 887,29 0,00 479 052,89
Net Amount 5 887,29 88 975,22
44
Year 2016 Initial Balance Increases Disposals / Transfers
Exchange Differences Final Balance
Gross amounts
Computer software 479 052,89 0,00 0,00 0,00 479 052,89
Others 88 975,22 0,00 0,00 0,00 88 975,22
TOTAL 568 028,11 0,00 0,00 0,00 568 028,11
Accrued amortizations
Computer software 479 052,89 0,00 0,00 0,00 479 052,89
TOTAL 479 052,89 0,00 0,00 0,00 479 052,89
Net Amount 88 975,22 88 975,22
6. INVESTMENT PROPERTIES
At December 31, 2015 and 2016, the item “Investment properties” is as follows:
Item Year 2015 Sales Financial year depreciations
Reversal Depreciations
Valuation Year 2016
Gross AmountsBuildings and other constructions
530 640,05 -169 895,44 284 755,39 645 500,00
Accrued depreciationsFinal balance
-15 919,24 5 096,88 -5 411,18 16 233,54 0,00
Net Amount 514 720,81 -164 798,56 645 500,00
In 2016, the accounting valuation methodology of the elements which are part of investment properties was changed from production cost to fair value which resulted in an increase of valuation of 284,755.39 €.
(amounts in euros)
7. TANGIBLE FIXED ASSETS
7.1 Groo values and accrued depreciations During the periods ending December 31, 2015 and 2016, the operations that occurred in the amounts of tangible fixed assets, as well as in the corresponding accumulated depreciations, were as follows:
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (4/12)
45
Year 2015 (amounts in euros)
Initial Balance Increases Disposals / Transfers / Write-offs
Exchange Differences Final Balance
GROSS AMOUNTS
Land and natural resources 564 331,91 50 255,00 0,00 0,00 614 586,91
Buildings and other constructions 4 548 853,37 80 441,50 80 441,50 -247 016,67 4 301 836,70
Basic equipment 23 610 241,59 1 524 663,23 3 100 914,44 -2123 357,49 19 910 632,89
Transport equipment 6 827 969,19 474 688,05 536 306,59 -628 920,17 6 137 430,48
Office equipment 661 531,63 51 451,53 0,00 -19 594,12 693 389,04
Other fixed tangible assets 52 311,60 0,00 0,00 -9 516,37 42 795,23
On-going 0,00 0,00 0,00 0,00 0,00
Advances for investments 184 132,00 0,00 0,00 0,00 184 132,00
TOTAL 36 449 371,29 2 181 499,31 3 717 662,53 -3 028 404,82 31 884 803,25
ACCRUED DEPRECIATIONS
Initial Balance Reinforcement Exchange Differences Write off/Reversals Final Balance
Buildings and other constructions 1 374 357,02 149 541,52 -80 331,88 0,00 1 443 566,66
Basic equipment 17 742 340,27 1 775 915,26 -1 067 557,41 2 319 851,94 16 130 846,18
Transport equipment 5 669 451,41 591 292,24 -372 662,77 522 079,30 5 366 001,58
Office equipment 604 905,20 24 904,72 -10 769,75 0,00 619 040,17
Other fixed tangible assets 25 901,84 4 725,60 -763,77 0,00 29 863,67
TOTAL 25 416 955,74 2 546 379,34 -1 532 085,58 2 841 931,24 23 589 318,26
Net Amount 8 295 484,99
46
Year 2016 (amounts in euros)
Initial Balance Increases Disposals / Transfers / Write-offs
Exchange Differences Final Balance
GROSS AMOUNTS
Land and natural resources 614 586,91 0,00 0,00 0,00 614 586,91
Buildings and other constructions 4 301 836,70 0,00 0,00 -331 838,07 3 969 998,63
Basic equipment 19 910 632,89 268 733,89 -157 900,00 -2 992 283,01 17 029 183,77
Transport equipment 6 137 430,48 209 139,95 -148 900,00 -935 695,80 5 261 974,63
Office equipment 693 389,04 43 198,86 0,00 -1 046,68 735 541,22
Other fixed tangible assets 42 795,23 0,00 0,00 2 946,90 45 742,13
On-going 0,00 0,00 0,00 0,00 0,00
Advances for investments 184 132,00 0,00 0,00 0,00 184 132,00
TOTAL 31 884 803,25 521 072,70 -306 800,00 -4 257 916,66 27 841 159,29
ACCRUED DEPRECIATIONS
Initial Balance Reinforcement Exchange Differences Write off/reversals Final Balance
Buildings and other constructions 1 443 566,66 116 107,95 -130 625,93 0,00 1 429 048,68
Basic equipment 16 130 846,18 1 253 950,42 -1 832 886,23 0,00 15 551 910,37
Transport equipment 5 366 001,58 294 077,52 -673 330,41 -40 150,00 4 946 598,69
Office equipment 619 040,17 25 898,22 7 170,47 0,00 652 108,86
Other fixed tangible assets 29 863,67 785,61 11 735,99 0,00 42 385,27
TOTAL 23 589 318,26 1 690 819,72 -2 617 936,11 -40 150,00 22 622 051,87
Net Amount 5 219 107,42
7.2 Fixed tangible assets expressed in revalued amountsDuring the period there were no revaluations of the Fixed tangible assets. In previous periods revaluations were performed based on the following legal statutes:
Revaluation year Legal Statutes
1986 Dec.- Law no. 118-B/86, of May 27,
1991 Dec.- Law no. 49/91, of January 25,
1993 Dec. - Law no. 264/92, of November 24,
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (5/12)
Project: IkeaClient: IKEA Centres Portugal
48
Discriminative table of revaluations done in the mentioned periods:
(amounts in euros)
Item Historical Costs Revaluations Revalued Accounting Amounts
Land and natural resources 99 759,58 69 572,33 169 331,91
Buildings and other constructions 248 151,10 160 848,78 408 999,88
TOTAL 347 910,68 230 421,11 578 331,79
8. LEASES
8.1 Financial Leases The company owns tangible fixed assets included in the Balance sheet through the financial lease regime. At December 31, 2016 the values of those assets were as follows:
(amounts in euros)
Item Gross Amounts Depreciations Net Amount
Basic equipment 126 500,00 100 900,00 25 600,00
8.2 The liability stated in the Balance sheet regarding financial lease contracts was the following:
(amounts in euros) Year 2016
In current liabilities 142 843,46
In non-current liabilities 9 384,78
TOTAL 152 228,24
8.3 Financial Leases The amount regarding the minimum payment of financial lease contracts is the following:
(amounts in euros) Year 2016
Up to 12 months 142 843,46
8.4 Operational LeasesThe amount regarding rent payments of operational leases is the following:
(amounts in euros) Year 2016
Up to 12 months 112 948,19
Over 12 months 255 374,86
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (6/12)
49
9. INTERESTS IN JOINT VENTURES
At December 31, 2016, the jointly controlled companies, integrated by the proportional method and proportion in the said companies were the following:
Name Shareholding
Vias, Gabriel Couto, Electren - Reabilitação Sistema Mondego, ACE 30,00%
CEGA – Construção Scut dos Açores, ACE 25,00%
CMGE – Construtoras Escolares, ACE 33,33%
Alberto Couto Alves, Construções Gabriel A S Couto, ACE 50,00 %
FEAG, ACE 15,00 %
Escola FGA, ACE 50,00 %
FGC - Ferreira Construções, Gabriel Couto 50,00%
At December 31, 2016, the aggregated amounts, calculated through the joint controlled percentage of the current assets, non-current assets, current liabilities, non-current liabilities, income and charges from the mentioned complementary groups of the company were as follows:
(amounts in euros)
Name Assets Assets Liabilities Liabilities Expenses Income Net
non-current current non-current current
V,GC,E, ACE 0,00 714 330,72 0,00 536 887,28 750,35 0,00 -750,35
CEGA, ACE 0,00 164 865,15 0,00 167 700,39 2 835,24 0,00 -2 835,24
CMGE, ACE 261,67 181 035,19 0,00 359 166,69 177 839,11 182 941,78 5 103,19
ACA,CGC, ACE 0,00 75 517,86 0,00 68 721,45 18 786,36 25 582,77 6 796,41
FEAG, ACE 88 975,22 20 476,47 0,00 109 451,69 0,00 0,00 0,00
FGA, ACE 0,00 282 269,68 13 794,57 335 791,80 1 866 841,75 1 764 936,26 -101 905,50
FGC,FC,GC 0,00 982 916,03 117 379,45 822 212,20 1 752 407,17 1 795 731,55 43 324,38
50
10. INVESTMENTS IN ASSOCIATES AND SUBSIDIARIES
At December 31, 2016, financial shareholdings in associates were as follows:
(amounts in euros)
Company Head Office % Equity Equity Net Res. Year Obs
Comasa-C. Civil e O.Públicas, Lda V.N. Famalicão 80,00 308 518,30 -26 590,52 2016 a)
Abrical-Areias, Brit. E Calcários, Lda Miranda Douro 50,00 440 854,64 -1 214,08 2016 a)
Socojol-Eng. Const. Civil, Lda Mozambique 91,70 b) b) b)
Gabriel Couto (Mozambique),SARL Mozambique 57,00 b) b) b)
ParqF-Parques Estac Famalicão Braga 39,90 127 727,53 48 400,96 2016 a)
AGE – Energias Renováveis, Lda V.N. Famalicão 50,00 19 165,80 -1 584,30 2016 a)
Mopre – Pré Fabric Betão, Lda Mozambique 90,00 b) b) b)
GCM-Eng e Const Lda Mozambique 88,04 b) b) b)
Bemoz. Lda. Mozambique 85,00 b) b) b)
JV Gabriel Couto A.Carvalho Rosas Const (Moldavia) Moldavia 33,33 b) b) b)
GMCP, Lda V.N. Famalicão 50,00 b) b) b)
GCM Engª Const. Mozambique Mozambique 88,04 b) b) b)
a) The amount of these financial shareholdings is calculated in accordance to the equity method.
b) The amount of shareholdings is evaluated at acquisition cost. These companies have been incorporated but did not start their production activity, being thus inactive.
10.1 There are no remunerations to the Board members of this company, resulting from any of the entities regarded as related parties.
10.2 Operations with related companiesIn 2016, transactions between the related companies and the entity were as follows:
(amounts in euros)
Invested Sales Purchases
Comasa-Const. Civil O. Públicas, Lda 4 403,66 893 413,40
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (7/12)
51
11. OTHER FINANCIAL INVESTMENTS
11.1 Investments in other companies (amounts in euros)
Name/Company % Amount Obs
Euroscut-Soc Concessionária da Scut do Algarve, SA --- 10,00 b)
Auto-Estradas Norte Litoral – Soc Conc AENL, SA --- 1,00 b)
Vialivre, SA 3,192 43 186,52 a)
Lamegorenova-Const e Gestão Equipamentos, SA 10,200 0,00 a)
Gabriel Couto, SGPS, SA --- 1,00 b)
Gabriel Couto Angola, Lda 7,125 7 724,62 b)
Norgarante --- 27 500,00 b)
Catim --- 1 000,00 b)
Banif --- 7 144,45 b)
Montepio --- 22 620,00 b)
Loans granted:
Gabriel Couto, SGPS, SA --- 0,32 b)
AGE – Energias Renováveis, Lda --- 9 582,90 a)
ParqF --- 31 085,01 a)
TOTAL 40 668,23
a) the amount of these shareholdings is estimated by the equity method
b) the amount of these shareholdings is estimated by the acquisition method.
11.2 Other financial investmentsAt December 31, 2016, financial investments refer to:
C.G.D. – Insurance 40.642,40€
12. DEPRECIATIONS OF THE PERIOD
(amounts in euros)
Financial year depreciations 2015 2016
Investment properties 7 959,62 5 411,18
Fixed tangible assets 2 546 379,34 1 690 819,72Fixed intangible assets 5 887,29
Reversals Investment properties -16 233,54
TOTAL 2 560 226,25 1 679 997,36
52
13. FINANCIAL INVESTMENTS
At December 31, 2016 the amount of Financial Investments totalled 1,401,874.15 €. Throughout the year, the following movement occurred:
(amounts in euros)
Investment Initial balance Increases Disposals Tranf/Write-offs/Exc. Dif. Final Balance
In Equity Method associates 5 955 616,44 -5 358 877,40 -45 642,65 551 096,39
Other investments in other companies 856 236,60 810 135,36
Other CGD investments 40 642,40 40 642,40
Other financial investments 896 879,00 850 777,76
TOTAL 6 852 495,44 -5 358 877,40 -45 642,65 1 401 874,15
14. INVENTORIES
At December 31, 2016 and 2015, Inventories were as follows:
Item 2016 2015
Raw materials, subsidiary and consumption materials 1 291 343,90 1 735 187,48
Sub-products and works in progress 271 737,33 246 401,00
Finished and intermediate products 1 853 540,19 1 853 540,19
Goods 8 919,88 8 919,88
TOTAL 3 425 541,30 3 844 048,55
15. CONSTRUCTION CONTRACTS
For the recognition of income or expenses of construction contracts, the completion percentage method was used. Therefore, the income directly related to the work in progress is recognized in the income statement according to its completion percentage, which is determined by the ratio between incurred costs up to the balance sheet date and total estimated costs of the works.
16. REVENUE
At December 31, 2016 and 2015, Sales and service provisions per market were as follows:
(amounts in euros)
Market 2016 2015
National market
Sales
Finished products 0,00 1 172 500,00
Sub-total 0,00 1 172 500,00
Service provision 56 013 520,98 50 320 680,39
Sub-total 56 013 520,98 51 493 180,39
Extra-community market
Service provision 35 383 566,73 39 607 194,53
Sub-total 35 383 566,73 39 607 194,53
Overall Total 91 397 087,71 91 100 374,92
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (8/12)
Project: Avantgarde Hotel Porto NorteClient: Marec-Hotel Activities
54
17. PROVISÕES
The operations occurred under Provisions in periods 2016 and 2015, were as follows:
(amounts in euros)
Provisions 2016 2015
Guarantees to clients
Initial balance 2 631,42 78 073,15
Increase 98 571,60 2 631,42
Other adjustments 28 000,00 78 073,15
Final balance 129 203,02 2 631,42
Onerous contracts
Initial balance 230 064,42 79 546,81
Increase 1 994,19 229 743,53
Reversals 169 691,33 157 209,46
Other adjustments -20 451,04 77 983,54
Final balance 41 916,24 230 064,42
FINAL OVERALL BALANCE
171 119,26 232 695,84
Provisions 2016 2015
Guarantees to clients
Increase 98 571,60 2 631,42
Onerous contracts
Increase 1 994,19 229 743,53
Reversals 169 691,33 157 209,46
Final balance -69 125,54 75 165,49
18. INCOME TAX
At December 31, 2016 and 2015, Income tax stated could be broken down as follows:
(amounts in euros)
Tax 2016 2015
Current tax 907 015,11 876 517,24
Deferred tax -439 007,83 128 130,82
Total 468 007,28 1 004 648,06
19. TRADE RECEIVABLES AND OTHER RECEIVABLES
Trade receivables and other receivables at December 31, 2016 and 2015 are as follows:
(amounts in euros)
Item 2016 2015
Clients:
Clients Current account 54 461 577,74 46 312 757,30
Clients - guarantee retention 6 399,95 47 080,64
Bad debts 1 567 365,98 28 050,57
Losses per accrued impairments -1 346 191,22 -28 050,57
TOTAL 54 689 152,45 46 359 837,94
Other accounts receivable:
Advances to staff 3 125,84 5 842,97
Debtors per income increase 11 599 806,98 4 007 325,18
Other debtors 3 003 511,25 8 563 052,73
TOTAL 14 606 444,07 12 576 220,88
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (9/12)
55
20. SUPPLIERS, OTHER PAYABLES AND ADVANCES FROM CLIENTS
At December 2016 and 2015, the amount payable to suppliers, other payables and advances from clients were as follows:
(amounts in euros)
Item 2016 2015
Suppliers:
Clients Current suppliers 21 157 609,17 20 536 457,65
Clients Current investment suppliers 0,00 109 439,53
Suppliers - Bills payable 857 704,23 1 183 931,27
Suppliers - Guarantees retention 0,00 4 450,45
Suppliers - Invoices pending 1 506 230,65 257 683,57
TOTAL 23 521 544,05 22 091 962,47
Other non-current payables:
Advances from clients 4 674 002,97 6 061 694,47
Other creditors 3 012 526,39 3 682 256,80
TOTAL 7 686 529,36 9 743 951,27
Other current payables:
Remunerations to be paid 1 792,61 1 360,72
Creditors per accrued expenses 1 938 607,31 3 421 482,68
Other creditors 3 879 045,89 4 629 635,78
Amounts allocated to shareholders 31 031,09
Other operations with shareholders 135 210,57
TOTAL 5 850 476,90 8 187 689,75
Advances from clients 7 589 549,38 7 474 439,39
56
21. LOANS OBTAINED
Loans btained are broken down into Bank Loans, Financial Leases and Other Financial Institutions. At December 2016 and 2015, such amounts were as follows - divided into Current Liability and Non-current Liability:
(amounts in euros)
Item 2016 2015
In non-current liabilities:
Bank loans 3 389 228,98 5 270 626,47
Other financial institutions 125 817,05 125 817,05
Financial leasing 9 384,78 0,00
TOTAL 3 524 430,81 5 396 443,52
In Current liabilities:
Bank loans 17 331 949,71 22 010 261,38
Other financial institutions 0,00 462 063,76
Financial leasing 139 167,54 145 850,67
TOTAL 17 471 117,25 22 618 175,81
22. DEFERRALS
At December 2016 and 2015, Deferrals were as follows:
(amounts in euros)
Item 2016 2015
In current assets:
Expenses to be recognized 274 106,07 307 037,57
In current liabilities:
Income to be recognized 8 917 226,81 11 903 074,93
23. SHARE CAPITAL
The company share capital is represented by 1.000.000 shares, with a value of 5 euros each, and it is fully paid-up.
24. STATE AND OTHER PUBLIC ENTITIES
Assets and liabilities amounts of State and other public entities were presented as follows in the balance sheets of 2016 and 2015:
(amounts in euros)
Item 2016 2015
In current assets:
Income statement 126 618,10 34 970,88
Value added tax 666 441,68 740 982,91
TOTAL 793 059,78 775 953,79
In current liabilities:
Income tax 356 148,63 205 837,99
Income tax withholding 85 308,77 80 791,50
Remaining taxes - Stamp duty 69,71 272,46
Social Security contributions 1 919 559,40 1 484 162,06
TOTAL 2 361 086,51 1 771 064,01
25. GAINS/LOSSES ALLOCATED TO SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
At December 31, 2016 and 2015, Gains/Losses allocated to subsidiaries, associates and joint ventures were as follows:
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (10/12)
57
Item 2016 2015
Revenues and gains by applying the equity method 60 631,54 1 295 411,38
Other revenues and gains 422 637,50 54 883,05
Dividends obtained 43 608,44 672 700,02
Expenses and losses by applying the equity method -829 708,07 -41 048,26
Other expenses and losses -63 553,96 -52 566,30
TOTAL -366 384,55 1 929 379,89
26. CHANGE IN PRODUCTION INVENTORIES
At December 31, 2016 and 2015, the following change was stated in production inventories:
(amounts in euros)
Item 2016 2015
Finished and intermediate products:
Final balance 1 853 540,19 1 853 540,19
Stock Adjustment
Initial balance 1 853 540,19 2 812 473,14
Changes 0,00 -958 932,95
Products and works in progress
Final balance 271 737,33 246 401,00
Initial balance 246 401,00 245 047,47
Changes 25 336,33 1 353,53
Changes in productioninventories 25 336,33 -957 579,42
27. COST OF GOODS SOLD AND MATERIALS CONSUMED
The cost of goods sold and materials consumed stated at the end of periods 2016 and 2015 were as follows:
(amounts in euros)
Item 2016 2015
Goods
Initial balance 8 919,88 8 919,88
Purchases 0,00 0,00
Final balance 8 919,88 8 919,88
Cost 0,00 0,00
Raw materials, subsidiary and consumption materials
Initial balance 1 735 187,48 1 116 406,82
Purchases 16 512 028,20 16 550 449,27
Final balance 1 291 343,90 1 735 187,48
Cost 16 955 871,78 15 931 668,61
Cost of goods sold and materials consumed 16 955 871,78 15 931 668,61
28. SUPPLIES AND EXTERNAL SERVICES
At December 31, 2016 and 2015, the amount of Supplies and External Services stated the amounts in the table below, per items:
58
(amounts in euros)
Item 2016 2015
Subcontracts 48 311 758,90 48 848 038,07
Specialized works 4 678 051,49 873 081,60
Advertising and propaganda 8 369,63 6 034,71
Monitoring and safety 231 912,87 243 637,51
Fees 96 414,08 88 209,46
Commissions 173 378,40 242 026,94
Conservation and repair 1 436 367,88 1 689 209,58
Other services 701,75 1 537,13
Rapid wear tools 127 594,32 197 601,91
Technical books and documents 29 958,16 22 336,59
Office material 75 927,27 39 806,60
Corporate gifts 9 845,36 5 342,12
Cleaning, hygiene and comfort materials 7 021,81 2 543,96
Other materials 2 865,51 2 310,54
Electricity 133 549,44 154 531,89
Fuel 109 444,34 126 023,72
Water 53 703,59 69 399,06
Oils 1 312,67 7 553,26
Gas 11 673,81 15 674,16
Travel and accommodation 2 094 650,33 2 692 574,85
Staff transport 0,00 41,94
Goods Transport 274 110,02 301 551,20
Other transports 51 109,30 113 932,46
Rents and leases 1 872 793,07 2 135 581,18
Communication 178 555,41 199 185,03
Insurances 485 382,60 461 953,23
Litigation and notaries 11 494,67 65 343,12
Representation expenses 19 367,76 14 954,45
Cleaning. Hygiene and comfort 37 721,94 64 942,36
Other services 114 395,08 92 174,66
TOTAL 60 639 431,46 58 777 133,29
29. EXPENSES WITH STAFF
29.1 The broken down Expenses with staff accounted for in periods 2016 and 2015 were as follows:
(amounts in euros)
Item 2016 2015
Corporate bodies remunerations 279 499,83 253 476,36
Staff remuneration 8 688 063,15 9 134 994,36
Compensations 164 915,37 158 980,15
Charges with remunerations 1 284 323,89 1 363 632,65
Insur. for accid at work and occup dis. 227 608,30 179 981,99
Welfare expenses 227 330,13 236 472,49
Other staff expenses 63 244,85 68 704,74
TOTAL 10 934 985,52 11 396 242,74
29.2 In 2016 the corporate bodies’ remunerations were:
Board of Directors 279.499,83 €
The remuneration allocated to the supervisory body was 13,680.00 € in 2016 and 2015.
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (11/12)
59
30. FAIR VALUE INCREASES / REDUCTIONS
At December 31, 2016, due to fair value increase, the company’s gain was as follows:
(amounts in euros)
Item 2016 2015
Gains in investment properties 284 755,39
Losses in financial investments -222,60
TOTAL 284 755,39 -222,60
31. OTHER INCOMES AND EXPENSES
In 2016 and 2015 Other income and gains and Other expenses and losses were as follows - pursuant to the following breakdown:
(amounts in euros)
Item 2016 2015
Other revenues:
Supplementary revenues 4 036 471,25 5 862 688,31
Prompt Payment Discounts 12 795,14 11 531,87
Revenues and gains in remaining investments 2 115 187,01 4 006 313,34
Income and gains Non-financial investments 103 196,84 643 684,90
Interest obtained 303 310,36 60 972,80
Others 1 259 820,50 710 620,38
Of which:
Correc. to prev. year report 54 013,44 63 352,37
Others non-specified 33 054,06 50 012,08
Benefits from Contractual Benefits 863 619,87 0,00
Recovery of financial expenditure 309 133,13 597 255,93
Tax estimates surplus 0,00 0,00
TOTAL 7 830 781,10 11 295 811,60
Item 2016 2015
Other expenses:
Taxes 425 492,15 850 432,53
Prompt payment discounts granted 5 785,52 8 179,73
Default and compensatory interest 11 570,63 7 612,87
Other interest 267 003,51 303 608,61
Foreign exchange losses 392 412,87 902 223,18
Other funding expenses and losses 374 778,49 425 763,99
Others 668 449,51 4 133 348,74
Of which:
Corrections to previous years reports 222 533,90 3 952 717,47
Contractual penalties 178 633,43 0,00
TOTAL 2 145 492,68 6 631 169,65
32. INTEREST AND SIMILAR EXPENSES
In 2016 and 2015 Interest and similar expenses were as follows - pursuant to the following breakdown:
(amounts in euros)
Item 2016 2015
Interest and similar income:
Interest from funding granted 175 346,94 140 464,03
Foreign exchange losses 0,00 664 099,10
TOTAL 175 346,94 804 563,13
60
ANNEX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016 (12/12)
Interest and similar costs:
Interest charges 1 778 671,77 2 804 423,32
Exchanges differences related to funding obtained 211 049,39 664 099,10
Other funding expenses and losses
Related to funding obtained 1 753 769,44 1 764 794,48
TOTAL 3 743 490,60 5 233 316,90
33. ACCOUNTS CONSOLIDATION
Pursuant to Decree-law no.158/2009, wording given by Decree-Law no. 98/2015, of June 2, the entity is exempted from consolidation since it does not control subsidiaries and those in which its shareholding is higher than 50% of the share capital, they jointly do not exceed the limitations stated in article 7 of the mentioned Decree-law.
34. GUARANTEES PROVIDED
34.1 At December 31, 2016, the amount of bank guarantees and surety bonds provided by the company to third parties was of 52,069,646.74 Euros, among which are the following amounts in foreign currency for work contract guarantees.
Metical (MZM) 28.753 €American dollars (USD) 5.835.939 €
34.2 To guarantee all short, medium and long term loans, as well as the bank guarantees provided by Banco Santander Totta, the Head office building was encumbered through a mortgage in favour of the bank.
34.3 To guarantee the medium/ long term loan granted by Banco Comercial Português in the initial amount of 2,200,000.00 €, and which on the date of 31/12/2016 is of 690,711.45 €, a rem guarantee was
provided through the mortgage of units not sold from the real estate development of Louredo, located in Avª 25 de Abril, in Vila Nova de Famalicão.
35. FOREIGN CURRENCY QUOTATIONS
On the Balance Sheet date, and for purposes of conversion of the amount originally expressed in foreign currency to euros, the official quotations of December 31, 2016 were used:
31.12.2016 31.12.2015
Currency 1 EURO 1 EURO
USD 1,0541 1,0887
New Leu (Romania) 4,539 4,524
Kwanzas (Angola) 184,475 147,8315
Meticais (Mozambique) 74,54 49,29
SZL (Swaziland) 14,457 16,953
Zambian Kwacha 10,4619 11,9757
CVE (Cape Verde Escudo) 110,265 110,265
36. DISCLOSURES REQUIRED BY LEGAL STATUTES
Pursuant to Decree-Law no. 534/80 of November 7, the entity’s payments to the State are up to date.
Pursuant to Decree-Law no. 411/91 of October 17, the entity’s payments to the Social Security are up to date.
37. EVENTS AFTER THE BALANCE SHEET DATE
At the moment of preparation of this document, there are no known subsequent events that would significantly modify the financial statements of December 31, 2016.
After the end of the reporting period until the preparation of this attachment, no other facts susceptible of modifying the accounts were recorded.
38. DATE ON WHICH THE FINANCIAL STATEMENTS ARE AUTHORIZED FOR ISSUE
The Financial Statements of the period ending on December 31, 2016 were approved by the Board of Directors and authorized for issue on May 16, 2017.
Chartered Accountant
Board of Directors
Project: High School D. Dinis. Santo TirsoClient: Parque Escolar, E.P. E (National Schools Administration)
62
63
REPORT AND SOLE SUPERVISOR OPINION
Project: Avantgarde Hotel Porto NorteClient: Marec-Hotel Activities
64
To the shareholders::
Pursuant to the legal and statutory precepts, we submit our Supervisory Report and Opinion on the Management Report, Accounts and Proposals presented by the Board of Directors of the Company CONSTRUÇÕS GABRIEL A. S. COUTO, S.A., related to the financial year of 2016.
1. During the financial year under analysis, we followed the Company’s activity as Sole Supervisor and maintained regular contacts with the board of Directors and its collaborators who provided all the information on the issues under analysis and whose collaboration we acknowledge.
2. To our knowledge, there was no situation that would not respect the legal and statutory standards.
3. We analysed the analytical Balance sheet, the Income Statement per Nature and the Statement of Changes in Equity, the Cash Flow Statement, the attachment and the Management Report from the Board of Directors and the Legal Certification of Accounts, which are an integral part of this Report and we agree with the said documents.
4. The accounting policies adopted allow for a correct valuation of the assets and income which are mentioned in note 3 of the annex.
In view of the above, our opinion is that:
a) The Management Report from the Board of Directors and the accounts of 2016 are to be approved;b) The proposal from the Board of Directors related to the appropriation of net Results is to be approved;c) The Company’s Administration and Supervision general assessment is to be carried out.
Trofa, May 31, 2017
SOLE SUPERVISOR
ARMINDO COSTA, SERRA CRUZ, MARTINS E ASSOCIADOS Company of Chartered Accountants no. 57
Represented by
António Serra Cruz Chartered Accounted no. 537
REPORT AND SOLE SUPERVISOR OPINION2016
Project: Polo 1 Logistics Plataform LeixõesClient: APDL – Administration the Port of Leixões
LEGAL CERTIFICATION OF ACCOUNTS(Statutory Auditors)
Project: Expansion of the Orthopedic Hospital Sant’Ana - Parede. LisboaClient: Santa Casa da Misericórdia de Lisboa
68
REPORT ON THE FINANCIAL STATEMENTS’ AUDIT
OPINION
We have examined the financial statements attached from CONSTRUÇÕES GABRIEL A. S. COUTO, S.A., which include the balance sheet on December 31, 2016 (which stated a total of 92.733.278,23 euros and a total equity of 15.621.855,40 euros, including a net Income of 1.620.105,37 euros), the Income Statement per Nature, the Statement of Changes in Equity, the Cash Flow Statement related to the year ending on such date and the Attachment which includes a summary of the significant accounting policies.
In our opinion, the attached financial statements truly and fully present, in all material aspects, the financial situation of CONSTRUÇÕES GABRIEL A. S. COUTO, S.A. as at December 31, 2016 and the cash flow related to the year ending on that date, pursuant to the Accounting and Financial Report Standards adopted in Portugal through the Accounting Standardization System.
BASES FOR THE OPINION
Our examination was carried out pursuant to the International Audit Standards and remaining standards and technical and ethical guidelines from the Portuguese Institute of Statutory Auditors. Pursuant to the said standards, our responsibilities are described under the section “Responsibilities of the auditor in the financial statements audit” below. Pursuant to the law, we are an independent entity and comply with the remaining ethical requirements pursuant to the Code of Ethics of the Portuguese Institute of Statutory Auditors.
It is our opinion that the evidence provided for the audit is sufficient and appropriate and provides an acceptable basis for the expression of our opinion.
RESPONSIBILITIES OF THE MANAGEMENT BODY WITH REGARD TO THE FINANCIAL STATEMENTS
The management body is responsible for:- preparing the financial statements that truly and appropriately present the financial position, financial performance and cash flow of the Entity pursuant to the Accounting and Financial Report Standards adopted in Portugal through the Accounting Standardization System:- elaboration of the management report pursuant to the legal and regulatory terms applicable:- creation and update of an appropriate internal control system to allow preparing financial statements with no material distortion due to fraud or error;- adoption of accounting policies and criteria appropriate to the circumstances; and - assessment of the Entity according to the going concern principle, being that if applicable, the entity will disclose the matters that might raise significant doubts on the continuity of its activities.
RESPONSIBILITIES OF THE AUDITOR WITH REGARD TO THE FINANCIAL STATEMENTS AUDIT
Our responsibility is to obtain an acceptable degree of assurance as to whether or not the financial statements contain materially relevant distortions due to fraud or error and issue a report stating our opinion. An acceptable degree of assurance is not a guarantee that the audit performed pursuant to the IAS will detect all material distortions when present. Distortions can be the consequence of fraud or error and are regarded as materially relevant if, individually or collectively, they can be expected to influence economic decisions taken based on the said financial statements.
LEGAL CERTIFICATION OF ACCOUNTS
69
Pursuant to the IAS, and as part of our audit, we make professional judgements and we are professionally sceptical during the audit and we also:- identify and assess the risks of material distortions in the financial statements due to fraud or error, design and conduct procedures of audit that answer the said risks and obtain proof of audit that is sufficient and appropriate to base our opinion. The risk of not detecting a material distortion due to fraud is higher than the risk of not detecting a material distortion due to error, as fraud can involve collusion, forgery, intentional omissions, false statements or internal control overlap;- we analyse and obtain an understanding of the internal control which is relevant to the audit in order to design procedures of audit which are appropriate in the said circumstances, but not to express an opinion on the efficiency of the Entity’s internal control;- we assess the adequacy of the accounting policies used and the reasonability of the accounting estimates made and corresponding disclosures made by the management body:- we conclude on the adequacy of the use by the management body of the going concern assumption and based on the evidence obtained from the audit we also concluded if there is any material uncertainty related to the events or conditions that might raise significant doubts on the Entity’s ability to continue its activities. If we conclude that there is a material uncertainty, we must highlight the related disclosures included in the financial statements in our report or, if the said disclosures are not appropriate, change our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. Nevertheless, future events or conditions may cause the Entity to discontinue its activities;- assess the financial statements’ presentation, structure and global content, including the disclosures and if the said financial statements represent the underlying transactions and events in order to obtain an appropriate presentation;- we communicate with the governance officers about the scope, calendar planned for the audit and the significant audit conclusions including any significant internal control deficiency identified during the audit, among other issues.
Our responsibility also includes verifying the consistency of the information present in the management report with the information in the financial statements.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
On the management report
In line with article 451 (3) e) of the Code of Commercial Companies, our opinion is that the management report was prepared in accordance to the applicable legal and regulatory requirements in force, the information within in it is consistent with the audited financial statements, and, considering the knowledge and assessment of the Entity, we did not identify material inaccuracies.
Trofa, March 31, 2017
ARMINDO COSTA, SERRA CRUZ, MARTINS E ASSOCIADOS Company of Chartered Accountants no. 57
Represented by
António Serra Cruz Chartered Accounted no. 537
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