ITR - MAHLE Metal Leve - Relações com Investidores

Transcrição

(A free translation of the original in Portuguese)
MAHLE Metal Leve S.A.
Quartely information (ITR)
at March 31, 2016
and report on review of
quarterly information
MAHLE REPORTS EBITDA OF R$ 107.4 MILLION IN THE 1Q16;
EBITDA MARGIN OF 18.7%
Mogi Guaçu (SP), May 11, 2016 - MAHLE Metal Leve S.A. (BM&FBOVESPA: LEVE3), a Brazilian autoparts
company that manufactures and sells components for internal combustion engines and automotive filters,
announces today its results for the first quarter of 2016. The Company’s operating and financial information, unless
otherwise indicated, is presented on a consolidated basis in BRL according to Brazilian Corporation Law.
1Q16 HIGHLIGHTS
Conference call and
Webcast of Results:
Net Sales Revenue in the 1Q16 totaled R$ 574.7 million, almost the same
as that of the 1Q15;
Date: May 12, 2016
Exports and Aftermarket sales corresponded to 77.9% of total sales in
the 1Q16 and 66.9% in the 1Q15;
12:00 p.m. (Brasília time)
11:00 a.m. (Eastern time)
Net Income of R$ 73.9 million and net margin of 12.9% in the 1Q16, an
increase of 55.3% compared to the 1Q15;
Phone numbers:
Brazil: +55 11 3193-1001
Brazil: +55 11 2820-4001
The Net Debt /Ebitda ratio at the end of the 1Q16 was 0.66 times;
USA: +1 786 924-6977
Other: +1 888 700-0802
The Annual and Extraordinary General Meeting held on April 27, 2016
approved distribution of additional dividends in the amount of R$ 26.0
million, which refers to a remaining balance of 2015. The Company
distributed in 2015 R$ 198.3 million of earnings, totaling 100.0% of the Net
Income for the year;
Webcast:
The Board of Directors Meeting held on April 27, 2016 approved
distribution of R$ 23.1 million (gross) in Interest on Equity referring to the
1Q16.
http://cast.comuniquese.com.br/MAHLE/1Q16
1
MAHLE Metal Leve S.A. | Release of the 1Q16 Results
TABLE OF CONTENTS
3.1
3.2
Performance of the Brazilian automotive industry ......................................................................................................... 5
Performance of the Argentinean automotive industry.................................................................................................... 6
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
Net sales revenue ......................................................................................................................................................... 7
Net sales revenue by market segment .......................................................................................................................... 8
Domestic OEM (original equipment manufacturer) sales .............................................................................................. 8
Domestic aftermarket sales ........................................................................................................................................... 8
OEM exports ................................................................................................................................................................. 8
Aftermarket exports ....................................................................................................................................................... 8
Consolidated exports by region ..................................................................................................................................... 9
Net sales revenue by product........................................................................................................................................ 9
Gross margin ................................................................................................................................................................. 9
Selling, general and administrative expenses ............................................................................................................. 10
Technology and product development expenses ........................................................................................................ 10
Other operating income (expenses), net ..................................................................................................................... 10
Operating income measured by EBITDA .................................................................................................................... 10
Net financial income (expenses) ................................................................................................................................. 11
Income and social contribution taxes .......................................................................................................................... 11
Net income .................................................................................................................................................................. 11
Capital expenditures.................................................................................................................................................... 12
Indebtedness ............................................................................................................................................................... 12
Dividends and Interest on Equity to Shareholders ...................................................................................................... 12
5.1
5.2
Performance of the Company shares and free-float shares ........................................................................................ 13
Shareholders’ profile ................................................................................................................................................... 13
2
1
Management’s Comments
Year 2016 began even more challenging than 2015 for the Brazilian economy in many aspects directly
affecting the Brazilian automotive industry.
Therefore, for MAHLE Metal Leve it is essential to constantly balance its share in the markets it operates to
maintain the income and profitability levels over time.
The graphs below show how the Company’s income is distributed in the market it operates in the 1Q16 and
1Q15:
The Company was able to maintain its revenue between the periods thanks to a growth of 21.5% in OEM
exports and of 7.6% in the aftermarket sales, which offset the drop of 33.6% in domestic OEM sales.
With respect to our domestic it also necessary to consider the discontinuance of the operations of subsidiary
MAHLE Hirschvogel Forjas S.A. in the second half of 2015, whose revenue in the 1Q15 amounted to R$ 16.3
million resulting in a negative impact in terms of comparison basis between the quarters in our domestic OEM.
Equating comparison basis the drop would have been 27.4% in 1Q16.
Our operating profitability increased in the 1Q16 (Ebitda margin of 18.7%) compared to 17.3% reported in the
1Q15. This is due to the dynamics of revenue among the markets we operate in the period, coupled with the
initiatives of revamping our processes to increase productivity, such as automation of the production
processes, intensification of cost management, among other measures.
In addition, MAHLE Metal Leve has worked to develop components that soon may be part of an engine the
Company has been naming Global Flex. Everyone knows that the flex-fuel engines produced in Brazil,
because of the different compression ratio required for each type of fuel, do not have optimum performance
neither with ethanol nor with gasoline, therefore, the purpose of such research is to drastically reduce the flex
engine inefficiency in relation to those that operate with only one type of fuel (fueled either by gasoline or by
ethanol). The Company has been researching on the best technological combination to have an engine
achieving the best results in terms of efficiency and reduced emissions. Not to mention that Global Flex would
put Brazil highlighted as an engineering supplier platform . The engine would give Brazilian engineering the
chance to be ranked among the world's top positions in the development of solutions for CO2 reduction in
short term, besides collaborating to balancing trade with reduction of gasoline imports.
Finally, we intend to continuously revamp our production processes seeking to constantly boost
competitiveness.
3
2 About MAHLE Metal Leve
We are a Brazilian autoparts company that manufactures and sells components for internal combustion
engines and automotive filters. We manufacture products with state-of-art technology and the highest quality,
and we continuously invest in the research and development of new products and production processes.
We have been developing activities in Brazil since the 50’s and have a broad portfolio of products and
integrated solutions that in most cases have been customized jointly with our major customers. We operate in
the OEM (Original Equipment Manufacturers) and aftermarket segments, serving automakers and large
autoparts distributors and engine overhaul enterprises.
Our products are manufactured and sold in Brazil and Argentina, and also exported to over 60 countries,
among USA, Germany, Mexico, Portugal and Spain, for a diversified portfolio of customers including General
Motors/Opel, Volkswagen, Fiat, Ford, Daimler MBB, International, Cummins, Volvo, PSA Peugeot, John
Deere, Renault, Scania, Caterpillar, Honda, Hyunday and others.
We own six industrial plants, five of which are located in Brazil, in the cities of Mogi Guaçu (two units),
Indaiatuba, São Bernardo do Campo, all of which are located in the State of São Paulo, and in Itajubá, State
of Minas Gerais. Our sixth plant is located in the city of Rafaela, Argentina. We have two distribution centers:
one in the city of Limeira, State of São Paulo, and one in Buenos Aires, Argentina. We have a technology
center located in the city of Jundiaí, State of São Paulo, which we believe is one of the largest and most wellequipped technology centers in Latin America for development of components and solution packages for
internal combustion engines. This center allows us to add value to and meet the requirements of our
customers in a customized and efficient manner, and develop innovative new product technologies and
processes.
We belong to the German autoparts group MAHLE, or MAHLE Group, which was established in 1920 and is
one of the most traditional groups in the autoparts industry in the world. MAHLE Group, including the
Company, currently has more than 170 industrial plants in 35 countries on five continents, 13 research and
development centers and approximately 75 thousand employees.
As part of the MAHLE Group, a group with global operations, we are able to exchange knowledge, have
constant access to the latest technology and develop new products together with our customers, which we
believe are key factors to the high level of market penetration and customer loyalty that we have achieved.
4
3
Performance of the automotive industry
3.1
Performance of the Brazilian automotive industry
Brazilian vehicle production in the first quarter of 2016 fell by 28.3%, and sales of the Brazilian
automotive industry fell 28.9% compared to the first quarter of 2015.
These drops are due mainly to the scenario of high inflation, low investments by the private sector and
deterioration of job positions in Brazil. All such factors, coupled with increased restriction of credit offer to
consumers, affected consumers’ confidence in purchasing durable goods.
According to the Brazilian Association of Motor Vehicle Manufacturers (ANFAVEA), vehicle inventory
recorded at the end of the 1Q16 totaled 259.0 thousand units, corresponding to 43 days of sales. At the end of
the same period of the previous year, the vehicle inventory was equivalent to 46 days of sales (360.4
thousand units).
The graph below shows the changes in the production, sales and total inventory of national vehicles in the first
three months of 2016 compared to the same period of 2015.
5
3.2
Performance of the Argentinean automotive industry
When comparing the 1Q16 with the 1Q15, the Argentinean automotive industry reported a growth of 25.6%
in sales and a drop of 19.5% in production of vehicles.
The table below shows the figures of vehicle production and sales in Brazil and Argentina. This refers to
the domestic market in which the Company operates.
The table below shows vehicle production for the 1Q16 in Europe and NAFTA (Company’s major export
markets) compared to the same period of 2015.
6
4
Economic and financial performance
4.1
Net sales revenue
In the 1Q16, net sales revenue was almost the same as that of the same period of 2015, with a small
reduction of 0.8%, reaching R$ 574.7 million. This result is mainly due to the performance of OEM exports
(+21.5%) and aftermarket exports (+19.5%), and domestic aftermarket sales (+5.1%), which offset the drop of
the domestic OEM sales (-33.6%).
7
See below the Company’s share in each market it operates:
4.2
Net sales revenue by market segment
Domestic OEM (original equipment manufacturer) sales
In the 1Q16, sales to this market totaled R$ 127.2 million (R$ 191.5 million in the 1Q15), representing a drop
of 33.6% in relation to the 1Q15. This market accounted for 22.1% of the Company’s revenue in the 1Q16
(33.1% in the 1Q15).
4.3
Revenue from this market was affected, among other factors, by discontinuance of the subsidiary MAHLE
Hirschvogel Forjas S.A., and the insourcing of components of filter project.
Considering only the discontinuance of the operations of subsidiary MAHLE Hirschvogel Forjas S.A., whose
revenue in the 1Q15 amounted to R$ 16.3 million, the drop would have been 27.4% in 1Q16.
Domestic aftermarket sales
In the 1Q16, the Company’s revenue from this market totaled R$ 149.1 million (R$ 141.8 million in the 1Q15),
a growth of 5.1%.This market accounted for 25.9% of the Company's total revenue In the 1Q16 (24.5% in the
1Q15).
4.4
This performance is due to the increase in the customer prices in the second half of 2015 resulting from the
inflation rate and a slight improvement of dealers' sales and the effect - still emerging but with good
perspectives - of lower participation of imports in the domestic aftermarket in view of the significant exchange
rate depreciation in the past quarters.
OEM exports
In the 1Q16, the Company reported revenue of R$ 262.9 million (R$ 216.4 million in the 1Q15), an increase of
21.5%. This market accounted for 45.8% of the Company’s total revenue in the 1Q16 (37.3% in the 1Q15).
4.5
The impact of the exchange variation between the periods was the main factor for the growth reported in the
1Q16 compared to the same period of the previous year, which offset the drop in heavy engine sales to Nafta
and the inventory adjustment made by certain automakers of Nafta and Europe.
Aftermarket exports
In the 1Q16, sales to this market amounted to R$ 35.5 million (R$ 29.7 million in the 1Q15), representing a
growth of 19.5%. This market accounted for 6.2% of the Company’s total revenue in the 1Q16 (5.1% in the
1Q15).
4.6
The impact of the exchange variation between the periods was the main factor for the growth reported in the
1Q16. However, certain countries bordering Brazil have performed weakly as they have been affected by the
Brazilian economic crisis, thus impacting the sales volume.
8
Consolidated exports by region
The graph below shows the distribution of our sales by geographic region in the 1Q16 and 1Q15, respectively:
4.7
Net sales revenue by product
In the 1Q16, sales of engine components
increased by 1.4%, and sales of filters decreased
by 13.9% compared to the 1Q15.
4.8
The graph below shows the share of both
segments in the sales for the 1Q16 and 1Q15,
respectively.
Reduction of filter sales in the 1Q16 was mainly due to the significant drop in the domestic OEM sales,
partially offset by the domestic aftermarket sales (which were positively impacted by the customer prices
increase due to the inflation rate in the second half of 2015).
The graph below shows the share of each product in the total net revenue in the 1Q16 compared to the 1Q15:
Gross margin
The Company’s gross margin increased by 29.9% in the 1Q16 compared to the 1Q15 (26.1%). This is due to
the dynamics of revenue among the markets we operate, coupled with the initiatives for revamping our
processes aiming to increase productivity, such as automation of the production processes, intensification of
cost management, among other measures.
4.9
9
Selling, general and administrative expenses
In the 1Q16 and 1Q15, selling expenses accounted for 6.6% and 7.2% of revenue, respectively, while general
and administrative expenses accounted for 3.8% of revenue in the 1Q16 and 2.9% of revenue in the 1Q15.
4.10
The increase in general and administrative expenses was due mainly to the salary adjustments in Brazil,
increase in the rate of Greater Brazil Plan (Programa Brasil Maior) (payroll exemption) and salary adjustment
in MAHLE Argentina (in February and March, which usually takes place in April).
Technology and product development expenses
In the 1Q16, this expense accounted for 3.8% of net sales revenue, while in the 1Q15, for 3.5%, which is in
line with the previous periods. These expenses refer to technological innovations involving developments in
partnership with clients, patent registration and launch of new products on the market.
4.11
Other operating income (expenses), net
In the 1Q16, a net expense of R$ 7.1 million was recorded in operating income (expenses), representing a
negative variation of R$ 8.6 million in relation to the 1Q15.
4.12
This was mainly due to nonrealization of non-recurrent income from sale of electric surplus, income from
Recovered Taxes (under the Reintegra Regime), partially offset against changes in the provisions for tax
contingencies, as shown below:
The table below shows the periods of applicability and respective rates of the Reintegra Program (a special
tax recovery regime for export companies), which explains the negative variation of R$ 4.4 million in the 1Q16
compared to the 1Q15:
4.13
Operating income measured by EBITDA
In the 1Q16, EBITDA was R$ 107.4 million (R$ 100.5 million in the 1Q15), representing EBITDA margin of 18.7%
(17.3% in the 1Q15).
10
Net financial income (expenses)
In the 1Q16, the Company recorded net financial expenses of R$ 12.3 million, while in the 1Q15, net financial
expenses amounted to R$ 5.5 million, meaning a variation of R$ 6.8 million between the periods.
4.14
The main change in net financial income (expenses) (item “ii” of the table below) between the 1Q16 and the
1Q15 refers to a reduction in net interests of R$ 4.6 million.
The variation in interest (income on investments) in the amount of R$ 5.7 million is due to a decrease in the
average investment levels in the period (R$ 69.7 million and R$ 292.3 million, respectively, the averages for
the 1Q16 and 1Q15), coupled with less yield on the Company’s investments (8.7% p.y. and 10.2% p.y.,
respectively, averages for the 1Q16 and 1Q15), as shown below:
¹ - CDBs (bank deposit certificates) and repurchase commitments, with average yield of 100.0% of CDI (interbank deposit certificates)
rates, invested exclusively with prime banks in Brazil.
The average volume of gross indebtedness decreased by 37.0% (changing from R$ 658.0 million in the 1Q15
to R$ 414.6 million in the 1Q16) due to the repayment of loans and financing, mainly those contracted from
the National Bank for Economic and Social Development (BNDES) and from commercial banks (NCE – export
credit note).
4.15
Income and social contribution taxes
In the 1Q16, the Company recorded a provision of R$ 0.3 million for income and social contribution taxes,
consolidated (expense of R$ 24.2 million as of March 31, 2015). The variation is due to a recorded tax credit
of R$ 21.5 million from the subsidiary MAHLE Metal Leve Gmbh relating to recalculation of the provision for
income tax for 2014 and 2015 due to the favorable outcome from the Austrian tax authorities in March, 2016
Net income
Net income in the 1Q16 totaled R$ 73.9 million (R$ 47.6 million in the 1Q15), representing an increase of
55.3% between the periods compared, While net margin in the 1Q16 was 12.9% and 8.2% in the 1Q15. The
variation is due, mainly, to a recorded tax credit of R$ 21.5 million from the subsidiary MAHLE Metal Leve
4.16
11
Gmbh relating to recalculation of the provision for income tax for 2014 and 2015 due to the favorable outcome
from the Austrian tax authorities in March, 2016
Capital expenditures
In the 1Q16, capital expenditures (capex) totaled R$ 14.8 million and were channeled into new buildings,
warehousing systems, new products, replacement of machinery and equipment aiming to increase productivity
and quality, R&D and IT equipment, among others. Total accumulated depreciation for the period was R$ 24.8
million and includes regular depreciation and amortization (R$ 22.4 million) and depreciation of deemed cost
of property, plant and equipment (R$ 2.4 million) relating to adjustment for adoption of the International
Financial Reporting Standards (IFRS).
4.17
Estimated capital expenditures for 2016 total R$ 122.3 million.
4.18
Indebtedness
At the end of the 1Q16, the Company's net indebtedness was R$ 251.7 million, representing a reduction of
15.8% compared to that at the end of 2015 (R$ 299.1 million).
The Net Debt//Ebitda ratio at the end of the 1Q16 was 0.66 times, while the ratio at the end of 2015 was 0.75
times.
Dividends and Interest on Equity to Shareholders
The Annual General Meeting held on April 27, 2016 approved distribution of additional dividends in the amount
of R$ 26.0 million, which refers to a remaining balance of 2015. The Company distributed in 2015 R$ 198.3
million of earnings, of which R$ 78.0 million refer to interest on equity and R$ 120.3 million to dividends, as
shown below:
4.19
The Board of Directors Meeting of April 27, 2016 approved distribution of R$ 23.1 million in interest on equity
referring to the period between January 1, 2016 and March 31, 2016.
12
5
Investor Relations and Capital Markets
Over the 1Q16, the Company's Investor Relations team implemented a series of actions to improve its internal
processes and information flow thus enhancing interaction with capital market players. Further, the Company
strengthened its participation in several meetings, conferences, site visits, teleconferences and other events
focused on the capital market, including contacts by phone and e-mails.
Performance of the Company shares and free-float shares
The graphs below show the evolution of LEVE3 shares, the Average Daily Trading Volume (ADTV) and the
ADTV turnover in relation to the free-float market capitalization:
5.1
Shareholders’ profile
In the first quarter of 2016 and 2015, shareholders’ profile in relation to the Company shares, including freefloat shares, was represented as follows:
5.2
6
Independent auditors
In accordance with CVM Instruction No. 381/03, the Company and its subsidiaries adopt the procedure of
ensuring that the provision of other services by auditors will not create any conflict of interest or affect the
independence and objectivity necessary for independent audit services.
During the first quarter of 2016, the Company did not contract the firm PricewaterhouseCoopers Auditores
Independentes to perform other services, therefore, no situation arose that could generate conflict of interest
under the terms of that CVM Instruction.
13
7
Representation by the executive board
In compliance with the provisions of CVM Instruction No. 480, Management declares that it discussed,
reviewed and agreed with the financial statements for the period ended March 31, 2016 and with the opinions
expressed in the independent auditor’s report.
8
Acknowledgements
Company’s Management thanks its shareholders, employees, customers and suppliers for the support and
trust during the first three months of 2016.
Management
14
Quarterly Information (ITR) at
March 31, 2016
and Report on Review of
Quarterly Information
Report on Review of Quarterly Information
To the Board of Directors and Shareholders
Introduction
We have reviewed the accompanying parent company and consolidated interim accounting
information of MAHLE Metal Leve S.A., included in the Quarterly Information Form (ITR) for the
quarter ended March 31, 2016, comprising the balance sheet as at that date and the statements of
income, comprehensive income, changes in equity and cash flows for the quarter then ended, and a
summary of significant accounting policies and other explanatory information.
Management is responsible for the preparation of the parent company and consolidated interim
accounting information in accordance with the accounting standard CPC 21 (R1), Interim Financial
Reporting, of the Brazilian Accounting Pronouncements Committee (CPC) and International
Accounting Standard (IAS) 34 - Interim Financial Reporting issued by the International Accounting
Standards Board (IASB), as well as the presentation of this information in accordance with the
standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the
Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim accounting
information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and International Standards on Reviews of
Interim Financial Information (NBC TR 2410 – Review of Interim Financial Information Performed
by the Independent Auditor of the Entity and ISRE 2410 – Review of Interim Financial Information
Performed by the Independent Auditor of the Entity, respectively). A review of interim information
consists of making inquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. A review is substantially less in scope than an
audit conducted in accordance with Brazilian and International Standards on Auditing and
consequently does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the interim information
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying parent company and consolidated interim accounting information included in the
quarterly information referred to above has not been prepared, in all material respects, in accordance
with CPC 21 (R1) and IAS 34 applicable to the preparation of the Quarterly Information, and presented
in accordance with the standards issued by the CVM.
2
PricewaterhouseCoopers, Rua José Pires Neto 314, 10 o, Campinas, SP, Brasil 13025-170, Caixa Postal 3136 T: (19) 37945400, F: (19) 3794-5454, www.pwc.com/br
Other matters
Statements of value added
We have also reviewed the parent company and consolidated statements of value added for the quarter
ended March 31, 2016. These statements are the responsibility of the Company’s management, and are
required to be presented in accordance with standards issued by the CVM applicable to the
preparation of Quarterly Information (ITR) and are considered supplementary information under
IFRS, which do not require the presentation of the statement of value added. These statements have
been submitted to the same review procedures described above and, based on our review, nothing has
come to our attention that causes us to believe that they have not been prepared, in all material
respects, in a manner consistent with the parent company and consolidated interim accounting
information taken as a whole.
Campinas, May 10, 2016
PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5 “F”
Eduardo Dias Vendramini
Contador CRC 1SP220017/O-4
3
Quartely information (ITR)
at March 31, 2016
Quartely information (ITR) at March 31, 2016
Contents
Balance sheet
3-4
Statement of income
5
Statement of comprehensive income
6
Statement of changes in equity
7-8
Statement of cash flows
9
Statement of value added
10
Notes to the financial statements
11-67
Representation by officers on the parent company and consolidated
financial statements
68
Representation by officers on the independent auditor´s report on the
financial statements
69
Balance sheet
at March 31, 2016 and December 31, 2015
All amounts in thousands of reais
Parent company
Asse ts
Note
Cash and cash equivalents
Trade and related-party receivables
Inventories
Taxes recoverable
Income tax and social contribution recoverable
Dividends and interest on capital receivable
Unrealized gains on derivative financial instruments
Other assets
6
7/10
8
9
9
10
31
03/31/2016
Total current asse ts
Assets held for sales
Taxes recoverable
Income tax and social contribution recoverable
Loans to related parties
Deferred income tax and social contribution
Investments in subsidiaries
Property, plant and equipment
Intangible assets
Other assets
13
03/31/2016
12/31/2015
133.995
319.274
239.424
34.282
23.646
34.284
5.036
12.592
114.853
415.026
355.317
45.157
19.199
20.099
22.811
152.093
397.746
351.439
43.973
33.154
8.550
17.152
793.148
802.533
992.462
1.004.107
20.831
22.657
-
793.148
802.533
1.013.293
1.026.764
13.894
3.337
37.767
178.667
619.699
608.837
12.637
14.953
3.336
33.354
136.568
631.313
608.028
12.823
27.630
3.550
30.515
4.322
3.048
710.415
637.734
12.812
29.095
3.549
28.635
6.645
3.117
729.835
637.307
12.994
1.474.838
1.440.375
1.430.026
1.451.177
9
9
10
11.b
12
13
14
Total asse ts
2.267.986
The accompanying notes are an integral part of these interim financial statements.
3
12/31/2015
94.862
323.510
256.999
34.099
3.924
44.260
18.842
16.652
-
Total non-curre nt assets
Consolidate d
2.242.908
2.443.319
2.477.941
Balance sheet
at March 31, 2016 and December 31, 2015
Parent company
Liabilities
Consolidated
03/31/2016
12/31/2015
(Restated
note 3 b.)
03/31/2016
12/31/2015
(Restate d
note 3 b.)
7.350
89.759
21.882
2.164
64.485
75.890
20.654
22.488
22.629
24.505
7.352
80.508
16.062
2.164
97.802
64.534
17.006
11.913
55.420
41.298
7.413
117.702
24.853
21.138
122.432
88.525
31.183
28.490
22.754
32.821
7.415
115.993
19.667
35.751
180.702
78.603
28.296
17.083
55.456
46.448
351.806
394.059
497.311
585.414
83.913
17.313
2.655
241.122
201.565
3.005
82.731
12.138
2.655
260.979
197.279
2.769
86.533
2.826
274.690
215.753
3.005
167
86.582
2.826
298.979
210.442
2.769
Total non-current liabilities
549.573
558.551
582.807
601.765
Total liabilities
901.379
952.610
1.080.118
1.187.179
966.255
297.451
5.540
71.336
26.025
966.255
293.757
4.261
26.025
966.255
297.451
5.540
71.336
26.025
966.255
293.757
4.261
26.025
1.366.607
1.290.298
1.366.607
1.290.298
Dividends and interest on capital payable
Trade and related-party payables
Taxes and contributions payable
Income tax and social contribution payable
Borrowings
Salaries, vacation pay and social charges
Sundry provisions
Provisions for warranties
Unrealized losses on derivative financial instruments
Other liabilities
10
10/15
16
16
17
18
19
20
31
Total curre nt liabilitie s
Loans to related parties
Provision for subsidiary's net capital deficiency
Income tax and social contribution payable
Borrowings
Provisions for contingencies and judicial deposits linked to judicial proceedings
Other liabilities
Equity
Share capital
Revenue reserves
Other comprehensive income
Retained earnings
Proposed additional dividends
10
11.b
12
16
17
21
22
Equity attributable to the owners of the parent
-
Non-controlling interests
-
(3.406)
464
Total equity
1.366.607
1.290.298
1.363.201
1.290.762
Total liabilities and equity
2.267.986
2.242.908
2.443.319
2.477.941
4
Statement of income
Periods ended March 31, 2016 and 2015
Parent company
Note
Net revenue
Cost of sales
24
25
Gross profit
Selling expenses
General and administrative expenses
Technology and product development costs
Other income
Other expenses
Equity in the results of investees
26
27
28
30
30
12
Profit before finance income (costs) and taxation
Finance income
Finance costs
29
29
Finance income (costs), net
Current income tax and social contribution
11.a
11.a
Income tax and social contribution
Profit for the period
Profit attributable to
Owners of the parent
03/31/2015
03/31/2016
03/31/2015
448.045
(333.522)
456.892
(332.358)
574.724
(403.131)
579.363
(427.895)
114.523
124.534
171.593
151.468
(27.264)
(16.855)
(19.565)
6.548
(12.962)
50.792
(29.942)
(14.278)
(17.612)
20.582
(18.849)
3.575
(38.102)
(21.603)
(22.046)
9.461
(16.573)
(68)
(41.695)
(16.963)
(20.372)
22.810
(21.307)
-
95.217
68.010
82.662
73.941
33.086
(41.056)
55.882
(54.897)
52.561
(64.856)
65.780
(71.303)
(12.295)
(5.523)
(7.970)
Profit before taxation
Consolidated
03/31/2016
985
87.247
68.995
70.367
68.418
(24.851)
11.492
(27.098)
5.651
(11.135)
11.444
(30.385)
6.148
(13.359)
(21.447)
73.888
47.548
309
70.676
(24.237)
44.181
23
73.888
(3.212)
47.548
(3.367)
70.676
44.181
0,57586
0,37058
Basic and diluted e arnings per share (in reais)
0,57586
The accompanying notes are an integral part of these interim financial statements
5
0,37058
Statement of comprehensive income
Parent company
Comprehensive income
Items that will be reclassified to profit or loss
Change in cash flow hedge, net
Change in subsidiaries' cash flow hedge, net
Income tax and social contribution on cash flow hedge
Income tax and social contribution on subsidiaries' cash flow hedge
Cumulative translation adjustments
Translation adjustments of deferred income tax (subsidiaries located abroad)
Other comprehensive income
03/31/2016
03/31/2015
03/31/2016
03/31/2015
73.888
47.548
70.676
44.181
37.277
(1.487)
(12.674)
506
(21.201)
-
(19.929)
632
6.776
(215)
12.277
-
34.797
(11.833)
(23.088)
1.887
(18.875)
6.419
12.841
(564)
2.421
Total comprehensive income for the period, net of income tax and social contribution
Comprehensive income attributable to:
Owners of the parent
Consolidated
76.309
(459)
47.089
1.763
72.439
76.309
(3.870)
Total comprehensive income
72.439
6
(179)
44.002
47.089
(3.087)
44.002
Periods ended March 31, 2015
Attributable to owners of the parent
Revenue re serve s
Note
At Dece mber 31, 2014
Share capital
966.255
Legal reserve
99.579
Other compre he nsive income
Reserve for
expansion and
modernization
184.127
Proposed
additional
dividends
46.123
Total
329.829
Carrying
value
adjustments
42.315
Cumulative
translation
adjustments
(12.031)
Total
30.284
Retained
earnings
-
Equity attributable
to owners of the
parent
1.326.368
Equity transactions with share holders
Prescribed dividends and interest on capital
-
-
-
-
-
-
-
-
163
163
-
-
-
-
-
-
-
-
47.548
47.548
-
-
-
-
-
1.948
12.277
(19.297)
6.561
-
Othe r comprehensive income
Financial instrument adjustments
Taxes on financial instrument adjustments
Realization of deemed cost, net
22
22
22
Internal change s in e quity
Appropriation to legal reserve
At March 31, 2015
(19.297)
6.561
(1.948)
12.277
-
12.277
(19.297)
6.561
(1.948)
-
2.377
-
-
2.377
-
-
-
966.255
101.956
184.127
46.123
332.206
27.631
246
27.877
7
(2.377)
47.282
Non-controlling
interests
18.912
(3.367)
422
(142)
-
Total equity
1.345.280
163
44.181
12.277
(18.875)
6.419
-
-
-
-
1.373.620
15.825
1.389.445
Periods ended March 31, 2016
Attributable to owners of the parent
Revenue re serve s
Note
At Dece mber 31, 2015
Share capital
Legal reserve
Other compre he nsive income
Reserve for
expansion and
modernization
Proposed
additional
dividends
Total
Carrying
value
adjustments
966.255
109.630
184.127
26.025
319.782
15.949
-
-
-
-
-
-
22
22
22
-
-
-
-
-
-
-
3.694
-
-
3.694
-
966.255
113.324
184.127
26.025
323.476
38.429
Cumulative
translation
adjustments
(11.688)
Total
Retained
earnings
Equity attributable
to owners of the
parent
4.261
-
1.290.298
-
73.888
73.888
1.142
(21.201)
35.790
(12.168)
-
Non-controlling
interests
464
Total equity
1.290.762
Equity transactions with share holders
Othe r comprehensive income
Financial instrument adjustments
Taxes on financial instrument adjustments
Realization of deemed cost, net
Internal change s in e quity
Appropriation to legal reserve
At March 31, 2016
8
35.790
(12.168)
(1.142)
(21.201)
(32.889)
(21.201)
35.790
(12.168)
(1.142)
5.540
(3.694)
71.336
1.366.607
(3.212)
(993)
335
(3.406)
70.676
(21.201)
34.797
(11.833)
1.363.201
Parent company
Consolidated
03/31/2016
03/31/2015
(Restated
note 3 b.)
03/31/2016
03/31/2015
(Restated
note 3 b.)
87.247
68.995
70.367
68.418
21.699
(54.986)
4.194
14.339
(9.320)
3
(2.069)
1.907
11.735
3.648
(442)
22.297
(3.721)
146
7.727
6.416
25
(20)
6.928
146
5.903
174
24.669
68
(20.292)
(9.454)
(1.187)
(2.162)
3.876
12.969
2.887
(121)
(930)
26.578
57.792
6.149
63
664
7.338
(144)
7.500
(62)
1.749
(2.167)
(16.945)
(3.845)
(3.874)
(41.970)
(43.509)
(9.555)
(5.879)
(16.942)
(2.775)
(5.616)
(5.477)
(69.856)
(46.347)
(15.485)
(14.220)
Increase (decrease) in liabilities
Other liabilities
(7.284)
11.356
5.820
(6.141)
33.824
17.708
(2.927)
(6.001)
(9.740)
9.922
1.228
(9.673)
41.038
19.709
994
(6.844)
Cash from operations
54.875
56.707
41.617
85.034
(45)
(56)
(1.138)
Cash flows from operating activities
Profit before taxation
Adjustments for:
Depreciation and amortization
Recognition (reversal) of provision for impairment of investments
Interest and foreign exchange and monetary variations, net
Unrealized (losses) gains on derivative financial instruments
Results on disposal of property, plant and equipment
Recognition (reversal) of provision for impairment of trade receivables
Recognition (reversal) of provision for tax and other contingencies
Recognition (reversal) of provisions for warranties
Recognition (reversal) of sundry provisions
Recognition (reversal) of provision for impairment of property, plant and
Recognition (reversal) of provision for inventory loss
Note
(Increase) decrease in assets
Inventories
Taxes recoverable
Other assets
Income tax and social contribution paid
(883)
Net cash provided by operating activities
54.830
56.651
40.479
84.151
Cash flows from investing activities
Dividends and interest on capital received from subsidiary
Loans granted to subsidiaries
Loan repayments received from subsidiaries
Additions to property, plant and equipment
Additions to intangible assets
Capital increase of subsidiary
Proceeds from sale of property, plant and equipment
(4.478)
1.159
(9.752)
(1.564)
(20.400)
231
(2.735)
(22.898)
11.461
(15.173)
(2.158)
64
(13.246)
(1.564)
3.371
(22.087)
(2.184)
65
Net cash used in investing activities
(34.804)
(31.439)
(11.439)
(24.206)
Cash flows from financing activities
Proceeds from borrowings
Repayment of principal of borrowings
Repayment of interest on borrowings
Dividends and interest on capital paid
54.236
(103.906)
(6.607)
(2)
20.792
(2.301)
(6.626)
-
161.723
(210.344)
(12.714)
(1)
58.166
(55.364)
(7.746)
-
Net cash provided by (used in) financing activities
(56.279)
11.865
(61.336)
(4.944)
Increase (reduction) in cash and cash equivalents, net
(36.253)
37.077
(32.296)
55.001
Cash and cash equivalents at January 1st
Effect of foreign exchange variation on cash and cash equivalents
133.995
(2.880)
279.866
3.993
152.093
(4.944)
287.282
5.614
94.862
320.936
Cash and cash equivalents at the end of the period
6
9
114.853
347.897
Statement of value added
Pare nt company
03/31/2016
Gros s revenue
Sales of goods, products and services
Other revenue
Provision for impairment of trade receivables
556.268
Consolidated
03/31/2015
568.497
03/31/2016
03/31/2015
690.169
703.825
685.382
3.374
1.413
703.500
81
244
554.744
(16)
1.540
568.112
(28)
413
(329.875)
(324.650)
(394.420)
(411.165)
(Includes amounts of taxes: ICMS, IPI, PIS and COFINS)
Cost of sales and services
Materials, energy, outsourced services and other
Impairment/recovery of assets
(165.847)
(164.487)
459
(184.286)
(148.394)
8.030
(204.230)
(191.263)
1.073
(238.988)
(181.241)
9.064
Gros s value adde d
226.393
243.847
295.749
292.660
Inputs acquired from third parties
Net value added generated by the company
(21.699)
(22.297)
(24.669)
(26.578)
204.694
221.550
271.080
266.082
83.878
59.457
52.493
65.780
50.792
33.086
3.575
55.882
Total value adde d to distribute
288.572
281.007
323.573
331.862
Distribution of value added
288.572
281.007
323.573
331.862
Personnel
88.750
87.925
111.706
111.635
Taxe s and contributions
85.001
90.648
76.560
105.062
Capital providers
40.933
54.886
64.631
70.984
5.555
35.378
7.126
47.760
13.059
451
51.121
13.783
289
56.912
73.888
47.548
70.676
44.181
73.888
-
47.548
-
Value added rece ived through transfer
Finance income
Interest
Rentals
Foreign exchange, monetary and other variations
Share holders
Retained earnings
Share of non-controlling interests of retained earnings
10
(68)
52.561
73.888
(3.212)
65.780
47.548
(3.367)
Notes to the interim financial statements
(in thousand of reais)
1
Operations
MAHLE Metal Leve S.A. (the Company) is an entity domiciled in Brazil. The registered address
of the Company's head office is in Mogi Guaçu, São Paulo.
The Company's main activities are the research, development, manufacturing and marketing, in
Brazil and abroad, of parts and accessories for internal combustion engines, the sale of which is
made to entities in various industries and lines of activity, such as manufacturers of automobiles,
trucks and tractors, etc., the spare parts market and the aviation, stationary and other engines
industry.
2
Entities of the Group (subsidiaries)
Ownership percentage (% )
Country
03/31/2016
12/31/2015
Direct Indirect
Direct Indirect
Subsidiaries
MAHLE Metal Leve Miba Sinterizados Ltda.
Brazil
MAHLE Argentina S.A.
Argentina
60
-
60
-
99,2
0,8
99,1
0,9
MAHLE Filtroil Ind. e Com. de Filtros Ltda.
Brazil
60
-
60
-
MAHLE Metal Leve GmbH
Austria
100
-
100
-
MAHLE Industry do Brasil Ltda.
Brazil
99,9
-
99,9
-
MAHLE Hirschvogel Forjas S.A.
Brazil
51
-
51
-
Brazil
33,33
-
33,33
-
Related companies
Innoferm Tecnologia Ltda.
3
Basis of preparation
a. Statement of compliance
The parent company and consolidated interim financial statements have been prepared in
accordance with
!
The accounting practices adopted in Brazil include the pronouncements, interpretations and
guidance issued by
"
" "
#
"
(“CVM”) and the Federal Accounting
Council (“CFC”).
11
In addition, the quarterly information includes the minimum requirements for disclosure
established by NBC TG 21 (R2) – (CPC 21 - R1), “Interim Financial Reporting”. This
information does not include all annual financial statement requirements and, therefore, it
should be read together with the parent company and consolidated financial statements of
MAHLE Metal Leve S.A. at December 31, 2015. This quarterly financial information for the
period ended March 31, 2016 was not subject to full disclosure as the relevant information
had already been presented in the annual financial statements, as provided in Circular
Letter/CVM/SNC/SEP 003/2011.
The preparation of quarterly information requires the use of certain critical accounting
estimates. It also requires management to exercise its judgment in the process of applying the
Company’s accounting policies. There have been no changes in assumptions and judgments
made by management relating to the use of estimates to prepare this quarterly information in
relation to those applied in the financial statements at December 31, 2015 as disclosed on
March 18, 2016.
The issuance of the parent company and consolidated financial statements was authorized by
the Company's Board of Directors on May 10, 2016.
b. Reclassification in the comparative interim financial statements
In this context, for a better comparability of the interim financial statements and in
accordance with IAS 1/CPC 26 "Presentation of Financial Statements", the balance sheet
figures of December 31, 2015 and cash flow figures of March 31, 2015 are being restated,
according to the criterion adopted for the period of March 31, 2016, as shown below:
Parent
12/31/2015
Balance sheet
At previously
presented
Advances from customers
Other liabilites (Current liabilities)
(a)
(b)
(a e b)
Reclassification
78.496
2.012
41.298
Restated
97.043
24.763
Pare nt Company
03/31/2015
At previously
presented
Advances from customers
Other liabilites
18.547
(2.012)
(16.535)
Consolidated
12/31/2015
(a)
(b)
(a e b)
Reclassification
34.410
799
(7.386)
(586)
(799)
1.385
12
At
previously Reclassification
presented
107.408
19.868
8.585
(8.585)
46.448
(11.283)
Restated
127.276
35.165
Consolidated
03/31/2015
Restated
33.824
(6.001)
At
previously Reclassification
presented
41.907
(869)
323
(323)
(8.036)
1.192
Restated
41.038
(6.844)
(a) Reclassification of amounts to pay to third parties for services acquired from “other
liabilities” to “rade payables and payables to related parties” to improve presentation.
(b) Reclassification of “advances from customer” to “other liabilities” to improve
presentation.
4
Significant accounting policies
These parent company and consolidated interim financial statements have been prepared under
the same accounting practices as described and disclosed in Note 4 to the financial statements for
the year ended December 31, 2015.
5
Segment reporting
1) Operating segments
The Company has determined the operating segments based on the reports used to make strategic
operating decisions. The Company has two segments: engine components and filters. The
information presented is measured in a manner consistent with that in the statement of income.
There was no change in the segment structure presented in the financial statements at December
31, 2015.
Consolidated
03/31/2016
Statement of income
Engine
components
Filters
03/31/2015
Consolidated
Engine
components
Filters
Consolidated
Gross operating revenue
Deductions from sales
612.573
(109.802)
104.710
(32.757)
717.283
(142.559)
610.990
(115.204)
118.704
(35.127)
729.694
(150.331)
Net operating revenue
Cost of sales
502.771
(357.454)
71.953
(45.677)
574.724
(403.131)
495.786
(364.048)
83.577
(63.847)
579.363
(427.895)
Gross profit
Selling expenses
Administrative expenses
Technology research costs
Other operating income (expenses)
Equit
Finance income
Finance costs
145.317
(32.845)
(16.745)
(18.008)
(7.426)
(68)
49.987
(61.927)
26.276
(5.257)
(4.858)
(4.038)
314
2.574
(2.929)
171.593
(38.102)
(21.603)
(22.046)
(7.112)
(68)
52.561
(64.856)
131.738
(34.415)
(14.056)
(17.444)
1.495
60.327
(65.470)
19.730
(7.280)
(2.907)
(2.928)
8
5.453
(5.833)
151.468
(41.695)
(16.963)
(20.372)
1.503
65.780
(71.303)
58.285
12.082
70.367
62.175
6.243
68.418
Profit before income tax and social contribution
13
Consolidated
03/31/2016
Balance sheet accounts
Total assets
Inventories
Intangible assets
Goodwill
Investment - Innoferm Tecnologia Ltda.
Other
Engine
components
2.315.079
317.679
2.292.679
(1.635.520)
40.459
595.366
3.048
701.368
Filters
128.240
37.638
126.694
(73.438)
1.909
35.437
12/31/2015
Consolidated
Engine
components
2.443.319
2.330.990
355.317
2.419.373
(1.708.958)
42.368
595.366
3.048
736.805
312.499
2.302.797
(1.627.788)
39.506
595.639
3.117
705.220
Filters
146.951
38.940
126.600
(71.774)
2.162
51.023
Consolidated
2.477.941
351.439
2.429.397
(1.699.562)
41.668
595.639
3.117
756.243
2 ) Distribution by geographic area
The Group does not have any customer that accounts for more than 10% of total consolidated net
revenue.
The consolidated net operating revenue at March 31, 2016 was R$ 574.724 (R$ 579.363 at March
31, 2015), the portion of which relating to foreign countries amounting to R$ 298.420
(R$ 246.066 at March 31, 2015) is distributed as follows:
Sales per country
Consolidated
1Q 2016
%
1Q 2015
%
Domestic market (Brazil and Argentina)
276.304
48,0%
333.297
57,5%
Europe
134.818
23,5%
109.604
18,9%
Central and North America
127.968
22,3%
100.523
17,4%
South America
19.638
3,4%
19.097
3,3%
Africa, Asia, Oceania and Middle East
15.996
2,8%
16.842
2,9%
Foreign countries
298.420
52,0%
246.066
42,5%
Total
574.724
100,0%
579.363
100,0%
14
6
Parent company
03/31/2016
BRL
ARS (expressed in BRL)
USD (expressed in BRL)
EUR (expressed in BRL)
Cash and demand deposits
Financial investments
Cash in transit
Consolidated
12/31/2015
03/31/2016
12/31/2015
3.544
7.078
12.347
22.969
4.587
9.108
8.325
22.020
4.357
1.540
7.173
20.167
33.237
5.052
802
9.233
8.969
24.056
70.045
1.848
94.862
111.975
133.995
78.960
2.656
114.853
118.945
9.092
152.093
The Company holds checking accounts at major banks in Brazil and abroad.
Financial investments have made as follows:
- Bank Deposit Certificates (CDBs) and repurchase agreements (90%), which yield an average
interest rate of 99,8% of the Interbank Deposit Certificate (CDI) rate, held exclusively at first-tier
banks in Brazil;
- Certificate deposits and time deposits which are short-term, highly liquid investments with original
maturities of three months or less and subject to an insignificant risk of change in value.
- Financial investments are recorded at updated value up to the end of the period. Their values
reflect the redemption amount that would be realized if the investments were redeemed on that date.
Yields on these transactions are recognized as finance income.
Cash in transit is deposits in foreign currency relating to funds received from customers abroad,
available for redemption from the banks with which the Group operates.
15
7
Pare nt company
Market
Domestic
Foreign
Provision for impairment of trade
receivables
Related parties (Note 10)
Consolidate d
03/31/2016
12/31/2015
03/31/2016
12/31/2015
180.207
80.453
157.358
96.115
189.524
171.122
191.099
157.572
260.660
253.473
360.646
348.671
(7.173)
(9.242)
(7.897)
(10.059)
253.487
244.231
352.749
338.612
70.023
75.043
62.277
59.134
323.510
319.274
415.026
397.746
The Group's exposure to credit and currency risks relating to trade receivables is disclosed in
Note 31.
At March 31, 2016, trade receivables of the parent company in the amount of R$ 14,610
(December 31, 2015 - R$ 22,001) and consolidated trade receivables at March 31, 2016 of
R$ 23,366 (December 31, 2015 - R$ 28,477) were past due but not impaired. These relate to a
number of original equipment and aftermarket customers for whom there is no recent history of
default.
16
The amounts and aging analysis of trade receivables are as follows:
Pare nt company
Not yet due
Past due:
Up to 7 days
From 8 to 30 days
From 31 to 60 days
From 61 to 90 days
From 91 to 120 days
From 121 to 180 days
From 181 to 360 days
Over 360 days
(-) Provision for impairment of trade
receivables
Total past due
Consolidate d
03/31/2016
12/31/2015
03/31/2016
12/31/2015
238.877
222.230
329.383
310.135
6.642
3.760
2.759
1.513
314
362
5.132
1.301
8.989
6.644
2.787
2.969
992
1.769
5.192
1.901
10.477
8.284
3.132
1.887
440
449
5.259
1.335
12.183
9.347
3.613
3.001
1.115
1.714
5.606
1.957
(7.173)
14.610
(9.242)
22.001
(7.897)
23.366
(10.059)
28.477
253.487
244.231
352.749
338.612
In the table above, where provision for the impairment of trade receivables over 120 days past
due is presented, the amounts of goods returned and advances from customers are excluded. No
provision is recorded for the impairment of receivables from related parties.
Changes in the provision for impairment of trade receivables are as follows:
Parent company Consolidated
At December 31, 2015
(9.242)
(10.059)
Receivables provided for in the period
Receivables reversed in the period
Receivables written off definitively
Foreign exchange variation
(1.095)
2.119
301
744
(7.173)
(1.348)
2.413
336
761
(7.897)
At March 31, 2016
17
8
Inventories
Parent company
03/31/2016
Finished products
Work in progress
Raw materials
Auxiliary materials
Imports in transit
12/31/2015
Consolidated
03/31/2016
12/31/2015
119.456
85.496
39.423
6.798
5.826
104.009
80.038
39.480
6.198
9.699
189.590
97.076
49.107
10.253
9.291
185.834
91.579
51.071
10.278
12.677
256.999
239.424
355.317
351.439
At March 31, 2016, inventory was stated net of provision for losses. These losses relate to
products with a negative margin, tooling, quality issues, out-of-specification materials,
obsolescence and slow-moving items in the amount of R$ 23,430 (R$ 23,871 at December, 2015)
in the parent company and R$ 39,394 (R$ 40,324 at December, 2015) in the consolidated
accounts.
Changes in the provision for inventory loss are as follows:
Parent
company
Reversal of provision
Recognition of provision
Inventory written off definitively as loss
At March 31, 2016
18
Consolidated
(23.871)
(40.324)
3.702
(3.319)
58
-
4.674
(4.869)
58
1.067
(23.430)
(39.394)
9
Taxes recoverable
Parent company
Consolidated
03/31/2016
12/31/2015
03/31/2016
12/31/2015
23.273
18.510
7.261
3.236
2.223
699
52
24.698
16.646
26.982
3.261
3.878
709
43
26.241
19.957
22.749
3.379
4.401
748
11.922
6.139
27.817
18.049
36.703
3.523
4.826
785
12.242
5.826
55.254
76.217
95.536
109.771
38.023
17.231
57.928
18.289
64.356
31.180
77.127
32.644
55.254
76.217
95.536
109.771
Value-added Tax on Sales and Services (ICMS) on
purchases of fixed assets
ICMS and Excise Tax (IPI)
Social Contribution on Revenues (COFINS)
Import Tax
Social Integration Program (PIS)
Export incentive - Argentina
Other
Current
Non-current
19
Explanatory notes to the financial statements
10
Related parties
a) Transactions of related parties
The aggregate amount of transactions and outstanding balances with related parties is presented below:
Parent company
Current
assets
Correto
Receivables
(Note 7)
Balances at 03/31/2016
Non-current
Current
assets
liabilities
Payment
term in days
(**)
Suppliers
(Note 15)
Loan
Transactions from 01/01/2016 to 03/03/2016
Payment
term in days
(**)
Sales/revenue
Purchases
Other
Products
Products
Other *
Companies
Subsidiaries
Direct subsidiaries
48.069
60
-
-
-
98.560
6
-
-
5.279
60
-
981
60
21.436
-
2.324
-
583
60
18.339
169
60
-
799
641
-
25
60
-
719
60
-
29
-
1.089
34
60
8.371
8
60
-
24
4
-
59
60
11.057
-
-
-
35
-
-
37.767
1.877
119.996
893
2.969
1.089-
-
-
(8)
79
Total direct subsidiaries
54.049
--
Related companies
MAHLE Vöcklabruck GmbH
4.967
60
-
-
-
6.286
MAHLE Clevite Inc.
1.407
60
-
61
60
1.959
101
-
MAHLE Behr Gerenciamento Térmico Brasil Ltda.
1.316
60
-
-
-
-
1.818
-
-
MAHLE France SAS
1.303
60
-
-
-
1.497
16
-
-
MAHLE Compressores do Brasil Ltda.
920
60
-
-
-
-
1.262
-
-
MAHLE Aftermarket GmbH
906
60
-
2.504
60
1.395
136
782
1.947
MAHLE India Pistons Ltd.
807
60
-
-
-
1.086
-
-
-
MAHLE Aftermarket S.de R.L.de C.V.
681
60
-
-
-
761
-
-
120
MAHLE Engine Componentes USA, Inc.
676
60
-
305
60
1.371
26
103
MAHLE Engine Components (Yingkou) Co., Ltd.
606
60
-
-
-
1.726
39
-
-
MAHLE Engine Components (Nanjing) Co., Ltd.
552
60
-
-
-
614
-
-
-
MAHLE Industriemotoren-Komponenten GmbH
446
60
-
-
-
565
-
-
MAHLE Componentes de Motores S.A.
259
60
-
-
-
297
119
-
-
MAHLE Motor Parcalari San. Izmir A.S
221
60
-
24
60
243
-
-
27
MAHLE International GmbH
182
60
-
849
60
-
252
-
1.069
MAHLE Compon. de Mot. de México, S. de R.L. de C.V.
155
60
-
1.363
60
175
-
1.745
320
MAHLE Engine Comp. (Chongqing) Co. Ltd.
115
60
-
-
-
168
-
-
-
MAHLE Trading Japan Co. Ltd.
114
60
-
-
-
85
37
-
-
MAHLE Ventiltrieb GmbH
94
60
-
-
-
103
-
-
-
MAHLE Engine Systems UK Ltd.
87
60
-
676
60
-
86
161
415
MAHLE GmbH
37
60
-
2.326
60
-
36
377
3.792
MAHLE Pistoni Italia SPA
35
60
-
-
-
68
-
-
-
MAHLE Industries Inc
29
60
-
1
60
-
45
-
1
MAHLE Engine Comp. Japan Corporation
17
60
-
-
-
19
-
-
-
MAHLE Japan Ltd.
10
60
-
-
-
-
16
-
-
8
60
-
15
60
18
-
16
-
MAHLE Componentes de Motor Espana S.L.
MAHLE Migna Private Ltd.
8
60
-
-
-
-
-
-
MAHLE Filter Systems North America Inc
7
60
-
-
-
7
-
-
-
MAHLE Filter Systems India Pvt ,Ltd.
5
60
-
-
-
-
-
-
-
MAHLE Motorsports Inc
4
60
-
-
-
6
-
-
-
-
-
-
4.500
60
-
-
-
-
MAHLE Filtersysteme GmbH
-
-
-
2.181
60
-
-
-
1.217
MAHLE Filtersysteme Austria GmbH
-
-
-
2.100
60
-
-
1.413
-
MAHLE Filter Systems Japan Corporation
-
-
-
1.084
60
-
-
178
24
MAHLE Indústria e Comércio Ltda.
-
-
-
1.054
60
-
-
-
1.581
MAHLE Donghyun Filter Systems Co., Ltd.
-
-
-
748
60
-
-
264
-
MAHLE Technologies Holding (China) Co., Ltd.
-
-
-
638
60
-
-
-
638
MAHLE Brockhaus GmbH
-
-
-
176
60
-
-
252
-
Other
-
-
-
363
60
13
-
399
69
-37.767
20.968
18.462
22.845
138.458
3.9894.882
5.6908.659
11.29112.380
Total related companies
15.974
Total related parties
70.023
* This includes property, plant and equipment of R$ 1,089 and brand license of R$ 1,970
** Realization of term days refers to current assets and current liabilities
20
Parent company
Current
assets
Correto
Receivables
(Note 7)
Non-current
Current
assets
liabilities
Payment
term in days
(**)
Suppliers
(Note 15)
Loan
Payment
term in days
(**)
Sales/revenue
Purchases
Other
Products
Products
Other*
Companies
Subsidiaries
Direct subsidiaries
55.845
60
-
-
-
87.723
9
-
-
1.661
60
-
185
60
14.532
-
2.189
-
449
60
14.600
1.071
60
7
848
1.387
-
212
60
-
8.289
60
14
145
4.417
1
158
60
7.445
188
60
1
116
26
-
51
60
11.309
-
-
-
35
-
-
33.354
9.733
102.277
1.153
8.019
1
Total direct subsidiaries
58.376
Related companies
-
4.501
60
-
-
-
3.177
-
-
2.978
60
-
-
-
1.715
-
59
-
1.277
60
-
-
-
-
404
-
-
1.144
60
-
-
-
210
102
10
-
910
60
-
184
60
1.632
-
-
-
860
60
-
-
-
2.096
-
-
-
789
60
-
2.784
60
129
16
1.332
24
668
60
-
-
-
-
-
-
-
MAHLE Clevite Inc.
658
60
-
12
60
2.184
115
-
12
MAHLE France SAS
389
60
-
-
-
251
-
-
-
368
60
-
-
-
556
-
497
-
301
60
-
-
-
153
-
-
-
277
60
-
584
60
-
151
-
-
228
60
-
-
-
1.050
-
-
-
MAHLE Pistoni Italia SPA
203
60
-
-
-
240
-
-
-
180
60
-
-
-
74
-
-
-
MAHLE Engine Comp. (Chongqing) Co. Ltd.
175
60
-
-
-
49
-
-
-
170
60
-
-
-
455
-
-
-
103
60
-
589
60
135
87
70
42
101
60
-
-
-
-
-
46
-
79
60
-
791
60
56
-
864
4.425
MAHLE GmbH
62
60
-
6.081
60
-
-
-
58
60
-
2.277
60
-
-
1.229
-
54
60
-
-
-
-
-
-
-
MAHLE Industries Inc
42
60
-
-
-
-
36
-
-
MAHLE König GmbH
35
60
-
-
-
1.314
-
-
-
MAHLE Aftermarket Pte. Ltd
18
60
-
578
60
-
-
864
-
MAHLE Engine Comp. Japan Corporation
18
60
-
-
-
27
-
-
-
MAHLE Japan Ltd.
12
60
-
-
-
-
8
-
-
5
60
-
-
-
-
-
-
-
4
60
-
-
-
2
-
-
-
-
-
-
5.000
60
-
-
-
-
-
-
-
954
60
-
-
-
1.380
-
-
-
2.228
60
-
-
468
-
MAHLE Trading (Shangai) Co. Ltd.
-
-
-
-
-
-
-
841
-
-
-
-
2.877
60
-
-
5
-
-
-
-
699
60
-
-
-
-
MAHLE Componente de Motor SRL
-
-
-
-
-
-
-
169
-
MAHLE Filter Systems Philippines Corporation
-
-
-
15
60
-
-
74
-
-
-
-
594
60
-
-
132
-
Other
-
-
-
283
60
85
-
735
4
-33.354
26.530
15.590
36.263
117.867
9192.072
7.39515.414
5.8875.888
16.667
75.043
21
Consolidated
Current
assets
Correto
Receivables
(Note 7)
Non-current
Current
assets
liabilities
Payment
term in days
(**)
Suppliers
(Note 15)
Loan
Payment
term in days
(**)
Sales/revenue
Products
Purchases
Other
Products
Other *
Related companies
13.968
60
-
1.363
60
23.728
1.893
1.745
320
10.031
60
-
-
-
16.170
119
-
-
MAHLE France SAS
7.877
60
-
-
-
12.369
16
-
-
6.902
60
-
4.929
60
14.433
136
1.669
1.947
4.967
60
-
-
-
6.286
-
-
(8)
2.581
60
-
15
60
4.134
-
16
-
MAHLE Componenti Motori Italia S.p.A.
1.998
60
-
-
-
2.770
-
-
-
MAHLE Clevite Inc.
1.407
60
-
108
60
1.959
101
-
79
MAHLE Kleinmotoren-Komponenten GmbH & Co. KG
1.369
60
-
39
60
2.368
-
-
42
1.316
60
-
1.008
60
-
1.818
-
1.055
MAHLE S.A.
1.299
60
-
-
-
2.150
-
-
-
1.128
60
-
957
60
2.032
26
103
515
MAHLE Engine Components (Thailand) Co., Ltd.
962
60
-
-
-
1.789
-
-
-
920
60
-
-
-
-
1.262
-
-
807
60
-
-
-
1.087
-
-
-
748
60
-
36
60
2.119
39
-
-
MAHLE Industries, Inc.
687
60
-
654
60
-
45
-
909
572
60
-
-
-
761
-
-
-
552
60
-
-
-
614
-
-
-
446
60
-
-
-
565
-
-
-
MAHLE Engine Componets Japan Corporation
372
60
-
-
-
410
-
-
-
MAHLE GmbH
349
60
-
4.666
60
1.993
36
408
4.516
221
60
-
24
60
243
-
-
27
182
60
-
1.373
60
-
252
-
1.116
MAHLE Engine Components Slovakia s.r.o
144
60
-
-
-
550
-
-
-
MAHLE Engine Components (Chongqing) Co.,Ltd.
115
60
-
-
-
168
-
-
-
114
60
-
-
-
85
37
-
-
94
60
-
50
60
103
-
-
-
87
60
-
700
60
-
86
162
415
MAHLE Polska Spolka Z.0.0
28
60
-
-
-
59
-
-
-
MAHLE Japan Ltd.
10
60
-
-
-
-
16
-
-
8
60
-
-
-
-
-
-
-
MAHLE Filter Systems North America Inc
7
60
-
-
-
7
-
-
-
5
60
-
-
-
-
-
-
-
4
60
-
-
-
6
-
-
-
-
-
-
4.500
60
-
-
-
-
MAHLE Holding Austria GmbH
-
-
30.515
-
-
-
-
-
-
-
-
-
2.184
60
-
-
1.413
79
-
-
-
2.181
60
-
-
-
1.217
-
-
-
1.084
60
-
-
178
-
-
-
-
1.054
60
-
-
-
1.581
-
-
-
748
60
-
-
264
-
-
-
-
638
60
-
-
-
638
MAHLE Brockhaus GmbH
-
-
-
176
60
-
-
252
-
MAHLE Composants Moteur France
-
-
-
162
60
-
-
163
5
-
-
-
140
60
-
-
201
-
MAHLE Industrial Thermal Systems Reichenbach Gmbh
-
-
-
51
60
-
-
-
55
MAHLE Ventiltrieb Brandenburg GmbH
-
-
-
24
60
-
-
MAHLE Engine Comp. Inc
,
-
-
15
60
-
-
MAHLE Donghyun Filter Systems (Tianjin) Co., Ltd.
-
-
-
11
60
-
MAHLE Industriefiltration GmbH
-
-
-
5
60
MAHLE Aftermarket Ltd
-
-
-
2
MAHLE Aftermarket S.L.
-
-
-
2
MAHLE König GmbH
-
-
-
Other
-
-
-
-
33
15
27
-
13
-
-
-
6
-
60
-
-
-
2
60
-
-
-
2
-
-
13
-
-
-
1
60
-
-
-
-
-
62.277
30.515
28.900
98.971
5.882
6.608
14.572
62.277
30.515
28.900
98.971
5.882
6.608
14.572
* This includes brand license of R$ 2,306
22
Consolidated
Current
assets
Correto
Receivables
(Note 7)
Non-current
Current
assets
liabilities
Payment
term in days
(**)
Suppliers
(Note 15)
Loan
Payment
term in days
(**)
Non-current
liabilities
Loan
Sales/revenue
Products
Purchases
Other
Products
Other *
Related companies
12.631
60
-
800
60
-
15.456
-
864
-
9.787
60
-
-
-
-
13.366
102
10
-
MAHLE France SAS
6.617
60
-
1
60
-
8.403
-
-
-
5.223
60
-
5.501
60
-
8.155
16
2.241
24
4.501
60
-
-
-
-
3.177
-
-
-
2.978
60
-
1.270
60
-
2.498
-
4.207
-
2.515
60
-
7
60
-
1.724
-
10
-
MAHLE GmbH
2.339
60
-
10.027
60
-
1.510
-
337
4.670
MAHLE Componenti Motori Italia S.p.A.
1.849
60
-
-
-
-
3.182
-
-
-
MAHLE S.A.
1.611
60
-
-
-
-
2.328
-
-
-
1.277
60
-
851
60
-
-
404
-
-
1.169
60
-
1.330
60
-
2.115
-
-
-
MAHLE Engine Components (Thailand) Co., Ltd.
1.168
60
-
-
-
-
859
-
-
-
MAHLE Kleinmotoren-Komponenten GmbH & Co. KG
952
60
-
24
60
-
1.633
-
-
-
809
60
-
-
-
-
2.096
-
-
-
668
60
-
-
-
-
-
-
-
-
MAHLE Clevite Inc.
658
60
-
64
60
-
2.184
115
11
12
368
60
-
-
-
-
556
-
497
-
301
60
-
-
-
-
153
-
-
-
277
60
-
1.104
60
151
-
-
228
60
-
-
-
-
1.050
-
-
-
MAHLE Engine Components Slovakia s.r.o
196
60
-
-
-
-
150
-
-
-
-
-
180
60
-
-
-
-
74
-
-
-
MAHLE Engine Components (Chongqing) Co.,Ltd.
175
60
-
-
-
-
49
-
-
-
170
60
-
52
60
-
789
-
21
42
103
60
-
603
60
-
135
87
70
101
60
-
-
-
-
-
-
46
-
58
60
-
2.328
60
-
-
-
1.229
-
55
60
-
-
-
-
-
-
-
-
MAHLE Industries, Inc.
53
60
-
673
60
-
-
36
-
-
MAHLE König GmbH
35
60
-
-
-
-
1.314
-
-
-
MAHLE Polska Spolka Z.0.0
27
60
-
-
-
-
48
-
-
-
MAHLE Aftermarket Pte Ltd.
18
60
-
578
60
-
-
-
864
-
MAHLE Engine Componets Japan Corporation
18
60
-
-
-
-
27
-
-
-
MAHLE Japan Ltd.
-
12
60
-
-
-
-
-
9
-
5
60
-
-
-
-
-
-
-
-
2
60
-
-
-
-
2
-
-
-
-
-
-
-
-
5.000
60
-
-
-
-
-
-
2.877
60
-
-
-
5
-
-
-
2.228
60
-
-
-
468
-
-
-
-
954
60
-
-
-
-
1.380
-
-
-
699
60
-
-
-
-
-
-
-
-
594
60
-
-
-
132
-
-
MAHLE Aftermarket S.L.
-
-
-
194
60
-
-
-
42
MAHLE Donghyun Filter Systems (Tianjin) Co., Ltd.
-
-
-
50
60
-
-
-
-
-
MAHLE Industriefiltration GmbH
-
-
-
35
60
-
-
-
99
-
MAHLE Ventiltrieb Brandenburg GmbH
-
-
-
-
-
25
60
-
-
-
MIBA Sinter Holding Gmbh
-
-
-
24
360
-
-
-
-
-
MAHLE Filter Systems Philippines Corporation
-
-
-
16
60
-
-
-
74
-
MAHLE Composants Moteur France
-
-
-
6
60
-
-
-
-
-
MAHLE Aftermarket Ltd
-
-
-
1
60
-
-
-
-
-
-
-
-
-
-
-
-
-
169
-
MAHLE Trading (Shangai) Co.Ltd.
-
-
-
-
-
-
-
-
841
-
MAHLE Holding Austria GmbH
-
-
28.635
-
-
167
-
-
-
-
-
-
-
Other
-
-
-
-
51
-
681
4
59.134
28.635
37.916
167
73.084
920
12.918
6.132
59.134
28.635
37.916
167
73.084
920
12.918
6.132
The aggregate amount of transactions and outstanding balances with related parties is presented below:
The business transactions with related parties relate mainly to the purchase and sale of products and
23
services directly related to the Company's operating activities.
At March 31, 2016, the subsidiary MAHLE Metal Leve Miba sinterizados Ltda. had a loan agreement
with the Company in the amount of R$ 18,339 (R$ 14,600 at December 31, 2015), subject to an
interest rate of 115% of the CDI, with no set maturity date.
At March 31, 2016, the subsidiary MAHLE Filtroil Indústria e Comércio de Filtros Ltda. had a loan
agreement with the Company in the amount of R$ 11,057 (R$ 11,309 at December 31, 2015), subject
to an interest rate of 115% of the CDI, with no set maturity date.
At March 31, 2016, the subsidiary MAHLE Industry do Brasil Ltda. had a loan agreement with the
Company in the amount of R$ 8,371 (R$ 7,445 at December 31, 2015), subject to an interest rate of
115% of the CDI, with no set maturity date.
Since February 15, 2012, the Company has had a brand licensing agreement with its parent company
MAHLE GmbH, which is registered with the National Institute of Industrial Property, in which the
licensor establishes the payment of royalties of up to 1% of net sales revenue and the Company is
authorized to manufacture and distribute products using the brand "MAHLE". The royalty expenses
were recorded within "selling expenses - brand license", in the amount of R$ 1,970 in the parent
company and R$ 2,306 in the consolidated accounts at March 31, 2016 (March 31, 2015 - R$ 2,363 in
the parent and R$ 2,608 in the consolidated accounts).
Parent company and ultimate parent company
The Company's direct parent company is established as a limited liability company and its corporate
name is MAHLE Indústria e Comércio Ltda.
MAHLE Industriebeteiligungen GmbH is the Group's ultimate parent company, established as a
limited liability company with its head office in the city of Stuttgart, in the Federal Republic of
Germany.
Dividends and interest on capital receivable
The breakdown of dividends and interest on capital receivable from subsidiaries is presented below:
Parent company
24
03/31/2016
12/31/2015
44.260
34.284
44.260
34.284
Dividends and interest on capital payable
The breakdown of dividends and interest on capital payable is presented below:
Parent company
MAHLE Industriebeteiligungen GmbH.
Minorities
Consolidated
03/31/2016
12/31/2015
03/31/2016
12/31/2015
3.813
636
2.901
3.813
636
2.903
2.965
3.813
635
3.813
636
2.966
7.350
7.352
7.413
7.415
b) Management compensation
The compensation of the key management personnel, which comprises the executive officers and the
Board of Directors, includes salaries, fees and variable benefits.
Parent company
03/31/2016
03/31/2015
Statutory officers
Non-statutory officers
Consolidated
03/31/2016
03/31/2015
2.902
1.553
2.902
1.553
982
814
1.197
1.011
3.884
2.367
4.099
2.564
The officers receive no share-based compensation.
25
11
Income tax and social contribution are calculated at the statutory rates.
a. Reconciliation of income tax and social contribution expense
The reconciliation of the amount that results from applying the combined statutory tax rates with
the income tax and social contribution expense recorded in the statement of income is as follows:
Parent company
03/31/2016
Profit before income tax and social contribution
Income tax and social contribution at the statutory rate in Brazil
(34%)
Effects of permanent differences:
Loss for the year for which no deferred tax asset was recognized
Gain for the period related to amount received by foreign
subsidiary (*)
Others, net
Current income tax and social contribution
Effective rate
03/31/2015
03/31/2016
03/31/2015
87.247
68.995
70.367
68.418
(29.664)
(23.458)
(23.925)
(23.262)
17.269
1.215
(23)
-
-
-
(2.756)
-
(964)
Total income tax and social contribution
Consolidated
796
21.537
5.476
(975)
309
(24.237)
(13.359)
(21.447)
(24.851)
11.492
(27.098)
5.651
(13.359)
(21.447)
309
(24.237)
15,3%
31,1%
-0,4%
35,4%
(11.135)
11.444
(30.385)
6.148
(*) The subsidiary MAHLE Metal Leve GmbH recorded a tax credit of R$ 21,537, related to the
recalculation of the provision for income tax for the years 2014 and 2015 due to the favorable
opinion obtained from the Austrian authorities in March 2016.
26
b. Recognized deferred tax assets and liabilities
Deferred income tax and social contribution were calculated on temporarily non-deductible
provision and tax losses.
i.
Breakdown of deferred tax assets and liabilities:
Parent company
Assets
Liabilities
Balance in
Balance in
Balance in
Balance in
03/31/2016
12/31/2015
03/31/2016
12/31/2015
-
-
61.412
65.060
Intangible assets
-
-
193.571
193.570
Derivatives
(5.225)
(21.068)
-
-
Inventory
(7.967)
(8.116)
-
-
Provisions
(157.878)
(146.715)
-
-
Tax (assets) liabilities
(171.070)
(175.899)
254.983
258.630
171.070
175.899
(171.070)
(175.899)
-
-
83.913
82.731
Amount eligible for offsetting
Net tax (assets) liabilities
Consolidated
Assets
Liabilities
Balance in
Balance in
Balance in
Balance in
03/31/2016
12/31/2015
03/31/2016
12/31/2015
-
-
67.603
71.610
Intangible assets
-
-
193.571
193.571
Derivatives
(5.039)
(21.068)
-
1.029
Inventory
(9.882)
(11.742)
-
-
Provisions
(164.042)
(153.463)
-
-
Tax (assets) liabilities
(178.963)
(186.273)
261.174
266.210
174.641
179.628
(174.641)
(179.628)
86.533
86.582
Amount eligible for offsetting
Net tax (assets) liabilities
(4.322)
(6.645)
In the parent company and consolidated financial statements, the deferred tax asset was offset
against the deferred tax liability when they related to the same tax authority and the same taxable
entity.
27
ii.
Changes in temporary differences and tax loss carry-forwards:
Parent Company
Balance in
12/31/2015
65.060
Recognized in
profit or loss
Recognized in
other
comprehensive
income
(3.648)
Intangible assets
193.570
1
Derivatives
(21.068)
3.169
Inventory
(8.116)
149
Provisions
(146.715)
(11.163)
82.731
(11.492)
Balance in
03/31/2016
-
61.412
-
193.571
12.674
(5.225)
-
(7.967)
-
(157.878)
12.674
83.913
Consolidated
Balance in
12/31/2015
71.610
Recognized in
profit or loss
(4.007)
Recognized in
other
comprehensive
income
Balance in
03/31/2016
-
67.603
193.571
Intangible assets
193.571
-
-
Derivatives
(20.039)
3.167
11.833
(5.039)
Inventory
(11.742)
1.860
-
(9.882)
Provisions
(153.463)
(12.464)
1.885
79.937
(11.444)
13.718
28
(164.042)
82.211
12
Investments in subsidiaries
03.31.2016
Investments
Goodwill based on
accounted for
expected future
using the equity
profitability
method
Elimination of profit on
inventory
(Balance at 03/31/2016)
Impairment
100.195
59.549
60.490
-
4.542
-
2.850
35.755
(35.755)
168.077
95.304
(74.163)
Total
(38.408)
Total
(6.760)
114.576
-
(2.297)
58.193
-
(1.494)
3.048
(10.551)
2.850
178.667
12.31.2015
Investments
Goodwill based on
accounted for
expected future
using the equity
profitability
method
85.828
59.549
34.779
-
Elimination of profit on
inventory
(Balance at 12/31/2015)
Impairment
(38.408)
-
1.346
-
-
4.610
-
-
3.421
35.755
(35.755)
129.984
95.304
(74.163)
Total
29
Total
(6.829)
100.140
(6.235)
28.544
(1.493)
(14.557)
1.346
3.117
3.421
136.568
Interest
(% )
Total
assets
Total
liabilities
Equity
Net
revenue
Profit (loss) for
the period
Investments
Subsidiaries
60,00
99,10
100,00
60,00
99,99
51,00
Total
97.713
205.771
149.327
4.110
3.684
65.470
75.096
123.838
117.138
11.423
3.398
45.671
526.075
376.564
22.617
81.933
32.189
(7.313)
286
19.799
149.511
28.489
68.762
112.780
1.367
1.169
21.366
233.933
(3.564)
2.150
9.979
(244)
(1.065)
(3.763)
3.493
(FY 2015)
December 31, 2015
Subsidiaries
60,00
99,10
100,00
60,00
99,99
51,00
Total
Related companies
Subtotal related companies
33,33
Total
93.328
202.262
158.353
2.698
2.998
37.332
91.085
115.653
123.574
12.005
9.551
30.625
496.971
382.493
2.243
86.609
34.779
(9.307)
(6.553)
6.707
114.478
7.282
7.282
13.570
81.195
32.189
286
10.097
(2.138)
2.131
9.979
(1.065)
(1.919)
(146)
-
(1.985)
(1.282)
-
137.338
6.988
(146)
(3.267)
98.059
93.768
7.282
7.282
(14.888)
25.200
32.685
(1.351)
(18.796)
(1.343)
(6.553)
-
(3.614)
(4.628)
-
(5.584)
(6.554)
-
(7.896)
(8.242)
(12.138)
-
(1.493)
(1.493)
(7.896)
(9.735)
103.251
358.174
515.220
3.782
4.115
57.819
(24.814)
25.429
32.685
(2.238)
(7.904)
(36.855)
1.346
85.828
34.779
3.421
1.042.361
(13.697)
125.374
22.850
125.704
32.455
4.610
4.610
3.482
3.482
129.984
26.332
14.470
14.470
641
641
13.829
13.829
12.000
12.000
511.441
383.134
128.307
1.054.361
10.446
10.446
(3.251)
(3M 2016)
March 31, 2016
Subsidiaries
60,00
99,20
100,00
60,00
99,99
51,00
Subtotal subsidiaries
Related companies
33,33
Subtotal related companies
Total
88.057
191.248
164.565
2.231
2.204
29.344
93.689
90.245
104.075
11.958
10.302
23.755
477.649
334.024
(5.632)
101.003
60.490
(9.727)
(8.098)
5.589
143.625
21.675
85.063
142.024
724
838
283
250.607
(6.240)
12.940
40.143
(420)
(1.544)
(1.118)
43.761
Provision for
impairment of
investments
93.768
98.059
(3M 2015)
March 31, 2015
Interest in equity
Elimination of
Equity in the Provision for
profit on
results of
loss (effect on
inventory /other
subsidiaries profit or loss)
assets (equity)
(4.291)
100.195
60.490
2.850
163.535
(24.144)
(24.144)
51.049
(4.388)
(24.144)
(24.144)
(4.242)
32.455
(1.346)
12.822
40.143
(570)
(4.388)
-
(12.138)
(4.242)
(2.398)
(252)
(1.544)
-
69
3.936
-
(3.379)
(5.836)
(8.098)
-
(4.194)
4.005
(17.313)
14.186
562
13.625
-
(205)
4.542
(68)
-
-
-
14.186
562
13.625
-
(205)
4.542
(68)
-
-
-
491.835
334.586
157.250
(4.194)
4.005
(17.313)
250.607
43.556
168.077
50.981
As mentioned in Note 14, the Company has made provision for the impairment of the goodwill on the
acquisition of this subsidiary in the amount of R$ 38,408.
At the Board of Directors’ meeting held on February 29, 2016, the Board approved a capital increase
of up to R$ 34,000 for this Company, of which R$ 20,400 was contributed by MAHLE Metal Leve
S.A. on March 28, 2016 and the remaining R$ 13,600 will be contributed in May 2016.
MAHLE Filtroil Indústria e Comércio de Filtros Ltda.
At March 31, 2016, the interest in the net capital deficiency of the subsidiary MAHLE Filtroil
Indústria e Comércio de Filtros Ltda. was R$ 5,836 (R$ 5,584 at December 31, 2015) and this was
recorded in non-current liabilities within "provision for subsidiary's net capital deficiency".
30
The subsidiary has suffered recurring operating losses and experienced a working capital deficiency
and a consequent increase in indebtedness. Since June 2009, several lawsuits have been filed involving
the subsidiary's quotaholders with respect to its commercial, financial and administrative management,
in addition to an action for dissolution of the subsidiary that was initiated because of a capital increase
proposed by the Company but not accepted by the non-controlling quotaholder to resolve the working
capital deficit of the subsidiary.
Although the action for dissolution of the subsidiary has been judged in favor of the Company by the
lower court, management has concluded, based on its judgment about the possibility of the noncontrolling quotaholder filing an appeal to the Superior Court, that the subsidiary has the ability to
continue in operational existence for the foreseeable period of more than 12 months from the date of
the approval of these financial statements, and, therefore, it is not anticipated that any material losses
will arise, other than those already recognized in the financial statements of the parent company. For
this reason, the going-concern basis was adopted in preparing the financial statements.
At March 31, 2016, the equity interest in this subsidiary was R$ 2,850 (R$ 3,421 at December 31,
2015), recorded in non-current assets within “investments in subsidiaries”.
At the Extraordinary General Meeting held on October 26, 2015, the stockholders approved a capital
increase for this Company in the amount of R$ 20,000, of which R$ 10,200 was contributed by
MAHLE Metal Leve S.A. and R$ 9,800 was contributed by the non-controlling stockholder. The
objective of this capital contribution was to satisfy all obligations to employees, customers and
suppliers.
At the Board of Directors’ meeting held on October 1, 2015, the Board approved the cessation of
operations of the Company by reason of the phase-out of orders from existing customers and no future
prospects for them. The decision was made also to stem losses suffered by this subsidiary due to the
crisis in the auto parts industry.
At March 31, 2016, the interest in the net capital deficiency of the subsidiary MAHLE Industry do
Brasil Ltda was R$ 8,098 (R$ 6,554 at December 31, 2015) recorded in non-current liabilities within
"provision for subsidiary's net capital deficiency".
At March 31, 2016, the interest in the net capital deficiency of the subsidiary MAHLE Metal Leve
Miba Sinterizados Ltda. was R$ 3,379 recorded in non-current liabilities within "provision for
subsidiary's net capital deficiency".
31
On August 25, 2015, the company Innoferm Tecnologia Ltda. was founded, in the share capital of
which MAHLE Metal Leve S.A. has a stake of 33.3%, totaling 1,000,000 (one million) shares with a
face value of R$ 0.01 (one cent real), totaling R$ 10.
With the approval of ¾ of the share capital, the company may open branches, agencies and offices
anywhere in the country, fulfilling the applicable legislation, with unlimited duration. It is based in the
city of Mogi Guaçu, State of São Paulo.
Innoferm is engaged in the development and commercialization of technologies related to the
production of ethanol and the assignment of exploration rights in general and related applications in
the ethanol production cycle via biomass and other underlying technologies.
On September 28, 2015, the Company increased its capital from R$ 30 to R$ 9,384, through the
capital contribution of credits by each partner. These credits relate to the acquisition of rights under
patent registration requests. At the same date, MAHLE Metal Leve S.A. acquired from Innoferm the
exclusive rights to the exploration of such technology in relation to the production of ethanol for R$
12,000.
On 2 October 2015, Innoferm Tecnologia Ltda. distributed interim dividends in the amount of R$
6,000. MAHLE Metal Leve S.A. received the amount of R$ 2,000.
This investment is recorded and evaluated by the equity method and recognized in the income
statement.
32
13
Parent company
Buildings and
construction
Land
Total cost
Accumulated depreciation
Net book value
Additions
Write-offs
Transfer
Depreciation
Depreciation/write-off (deemed cost)
At March 31, 2016
Total cost
Net book value
Machinery,
equipment and
facilities
Furniture and
fittings
Vehicles
Construction in
progress
Advances to
suppliers
(Recognition) / Reversal
of provision for
impairment
Total
52.454
118.522
444.705
4.682
6.017
1.101
7.875
(4.043)
631.313
52.454
-
229.336
(110.814)
1.856.681
(1.411.976)
28.192
(23.510)
24.397
(18.380)
1.101
-
7.875
-
(4.043)
-
2.195.993
(1.564.680)
52.454
118.522
444.705
4.682
6.017
1.101
7.875
(4.043)
631.313
-
986
(1.202)
(642)
3.183
(64)
3.006
(16.980)
(1.581)
51
(41)
(217)
(22)
290
(170)
(485)
(3)
386
(1.021)
-
4.856
(1.944)
-
-
9.752
(234)
(18.884)
(2.248)
52.454
117.664
432.269
4.453
5.649
466
10.787
(4.043)
619.699
52.454
-
230.322
(112.658)
1.854.889
(1.422.620)
28.106
(23.653)
24.069
(18.420)
466
-
10.787
-
(4.043)
-
2.197.050
(1.577.351)
52.454
117.664
432.269
4.453
5.649
466
10.787
(4.043)
619.699
33
Consolidate d
Buildings and
construction
Land
Total cost
Net book value
Additions
Write-offs
Transfer
Depreciation
Depreciation/write-off (deemed cost)
At March 31, 2016
Total cost
Net book value
Machinery,
equipment and
facilities
Furniture and
fittings
Vehicles
Construction in
progress
Advances to
suppliers
(Recognition) / Reversal
of provision for
impairment
Total
58.854
125.894
522.028
5.464
6.666
6.077
10.747
(5.895)
729.835
58.854
-
248.715
(122.821)
2.054.101
(1.532.073)
30.529
(25.065)
26.269
(19.603)
6.077
-
10.747
-
(5.895)
-
2.429.397
(1.699.562)
58.854
125.894
522.028
5.464
6.666
6.077
10.747
(5.895)
729.835
(60)
1.043
579
(1.257)
(672)
(592)
4.133
(187)
6.451
(19.644)
(1.665)
(7.223)
138
(41)
(244)
(22)
(67)
328
(171)
(540)
(3)
(80)
496
(1.022)
-
7.108
(5.967)
(475)
121
115
13.246
(237)
(21.685)
(2.362)
(8.382)
58.794
124.995
503.893
5.228
6.200
5.551
11.413
(5.659)
710.415
58.794
-
249.606
(124.611)
2.043.514
(1.539.621)
30.350
(25.122)
25.804
(19.604)
5.551
-
11.413
-
(5.659)
-
2.419.373
(1.708.958)
58.794
124.995
503.893
5.228
6.200
5.551
11.413
(5.659)
710.415
34
Deemed cost
Changes in deemed cost
Parent Company
12/31/2015
Land
Buildings and construction
Machinery, equipment and facilities
Furniture and fittings
Vehicles
46.905
48.192
12.643
131
(118)
107.753
Depreciation/w
rite-off
(deemed cost)
(642)
(1.581)
(22)
(3)
(2.248)
03/31/2016
46.905
47.550
11.062
109
(121)
105.505
Consolidated
12/31/2015
Land
Buildings and construction
Machinery, equipment and facilities
Furniture and fittings
Vehicles
52.617
49.834
12.927
282
(122)
115.538
Depreciation/w
rite-off
(deemed cost)
(672)
(1.665)
(22)
(3)
(2.362)
03/31/2016
52.617
49.162
11.262
260
(125)
113.176
The annual depreciation rates of the property, plant and equipment items at March 31, 2016 are equal
to the rates presented at December 31, 2015.
Guarantees
The Company offered items of its property, plant and equipment as collateral for borrowings and tax
and labor lawsuits, in the amount of R$ 6,506 in the consolidated accounts at March 31, 2016
(R$ 6,531 at December 31, 2015). These items comprise machinery and equipment.
35
Provision for impairment
The Company has recorded provision at an amount sufficient to cover any impairment losses on
property, plant and equipment, which relates substantially to the group of machinery and equipment
and is recorded in the parent company and consolidated accounts of property, plant and equipment in
accordance with the requirements set out in NBC TG 01 (CPC 01) - (R1)/IAS 36 “Impairment of
assets”.
Non-current assets held for sale
The assets of the subsidiary MAHLE Hirschvogel Forjas S.A., amounting to R$ 30,563, and the
recognition of a provision for loss in the total amount of R$ 7,906, are recorded at the net value, as
held for sale, in the amount of R$ 22,657 at December 31, 2015. At March 31, 2016, there was a
partial sale of R$ 1,826, the remaining balance is R$ 20,831.
Based on its decision and taking into consideration the shutdown of the subsidiary and the intent to
locate a buyer and complete the sale of the assets, the Company classified the non-current assets as
held for sale. These assets are available for immediate sale.
14
Intangible assets
Parent company
Annual
amortization
Consolidated
03/31/2016
12/31/2015
03/31/2016
12/31/2015
568.612
568.612
568.612
568.612
Goodwill on merger with subsidiaries:
MAHLE Participações Ltda. (a)
-
Goodwill on acquisition of subsidiaries:
MAHLE Argentina S.A. (a)
-
-
-
65.163
65.435
MAHLE Hirschvogel Forjas S.A. (a)
-
-
-
35.755
35.755
50.519
46.740
46.701
50.388
Other (a e b)
Cost of acquisition and installation of software (b)
20
-
334
334
3.396
4.120
Usage right and concessions (a)
-
32.358
30.833
32.358
30.833
Usage right and concessions (b)
20
5.813
5.813
5.813
5.813
-
-
(38.408)
(38.408)
-
(35.755)
(35.755)
(343)
(343)
-
Provision for impairment of intangible assets ( MAHLE Argentina S.A. )
Provision for impairment of intangible assets (MAHLE Hirschvogel Forjas S.A. )
-
Provision for impairment of intangible assets (other)
-
(334)
653.523
Accumulated amortization
(44.686)
608.837
(a) Indefinite useful life
(b) finite useful life
36
(334)
651.959
(43.931)
608.028
686.979
(49.245)
637.734
686.581
(49.274)
637.307
Statement of changes in intangible assets
Parent company
Goodwill on acquisition of
subsidiaries
(merged or
not)
Cost of acquisition
and installation of
software
568.612
Additions
Amortization
6.918
-
At March 31, 2016
39
(521)
568.612
6.436
Usage right
and
concessions
32.498
1.525
(234)
Total
608.028
1.564
(755)
33.789
608.837
Other
Total
Consolidated
Goodwill on
acquisition of
subsidiaries
(merged or not)
Additions
Amortization
At March 31, 2016
Cost of acquisition
and installation of
software
595.638
9.041
(273)
39
(561)
(44)
595.365
8.475
Usage right
and
concessions
32.498
1.525
(234)
33.789
130
(25)
105
637.307
1.564
(795)
(342)
637.734
Provision for impairment of intangible assets
In December 2013, the Company identified and recognized provision for the impairment of 100% of
goodwill on the subsidiary MAHLE Hirschvogel Forjas S.A. in the amount of R$ 29,037, which
resulted in the total write-off of goodwill of R$ 35,755. The identified loss is due to a decrease in
future results caused by a loss of market share.
At December 31, 2015, the Company conducted impairment testing of the subsidiary MAHLE
Argentina S.A. and of the CGU of MAHLE Metal Leve S.A. for the ring business and did not identify
any need for provision for impairment.
The Company's management continuously monitors the activities of its subsidiaries and did not detect
substantial changes in their operational performance in the first quartley of 2016 that would justify any
change in the previously recognized impairment losses.
37
15
Parent company
03/31/2016
Consolidated
12/31/2015
(Restated
note 3 b.)
03/31/2016
12/31/2015
(Restated
note 3 b.)
Trade payables
Raw material
50.460
42.233
70.810
69.492
Services
16.454
18.547
17.992
19.868
66.914
60.780
88.802
89.360
22.845
36.263
28.900
37.916
89.759
97.043
117.702
127.276
Related parties (Note 10)
The Group's exposure to currency and liquidity risks in connection with accounts payable to suppliers
is disclosed in Note 31.
16
Parent company
03/31/2016
State taxes
Consolidated
12/31/2015
03/31/2016
12/31/2015
Municipal taxes
10.833
10.833
11.049
3.615
2.657
2.053
763
1.961
2.164
-
5.906
5.906
10.156
345
1.755
5.055
61
2.940
2.164
-
11.615
11.296
319
13.139
3.677
2.708
2.313
776
3.665
21.138
99
7.262
7.038
224
12.319
1.179
1.852
5.529
242
3.517
35.751
86
Current liabilities
24.046
18.226
45.991
55.418
2.655
2.655
2.826
2.826
2.655
2.655
2.826
2.826
ICM S payable
Other
Federal taxes
COFINS payable
IPI payable
IRRF
PIS payable
Other
Federal taxes
Social contribution payable
Non-current liabilities
38
17
Borrowings
Parent company
Description
12/31/2015
03/31/2016
12/31/2015
BRL
BRL
BRL
28.184
70.493
82.271
61.329
20.178
2.992
1.919
65.656
52.855
70.490
82.194
61.111
20.180
4.259
2.036
5.847
28.184
90.686
82.271
61.329
20.178
2.992
6.600
1.969
72.703
52.855
90.679
82.194
61.111
20.180
4.259
7.000
2.061
Currency
ARS
USD
USD
EUR
33.920
4.321
-
31.017
27.808
33.920
4.321
58.834
27.805
-
305.607
358.781
397.122
479.681
26.244
38.241
97.802
-
42.268
80.164
112.063
68.639
64.485
97.802
122.432
180.702
241.122
-
260.979
-
257.789
16.901
280.979
18.000
241.122
260.979
274.690
298.979
Borrowings in local currency (BRL)
BNDES-Exim (interest of 5.50% p.a.)
Export Credit Note (NCE) (interest of 5.50% p.a.)
BNDES-Exim (interest of 8.00% p.a.)
NCE (interest of 8.86% p.a.)
FINEP (Long-Term Interest Rate (TJLP) + 5.00% p.a. - 6.00% p.a.)
NCE (interest of 11.00% p.a.)
BNDES-Finem (TJLP + 1.40% p.a.)
Bank Credit Certificate (interest of 109.50% to 112.20% of CDI p.a.)
Other
Borrowings in foreign curre ncy
Working capital (interest of 9.90% to 34.75% p.a.) - Argentina
Working capital ( interest of 112,20% CDI p.a.) - M Sint. (*)
ACC (interest of 1,95% to 2,52% p.a.)
ACC (interest of 1,60% to 1,65% p.a.)
Consolidated
03/31/2016
BRL
BRL
BRL
BRL
Current - borrowings in local currency
Current - borrowings in foreign currency
Total current
Non-current - borrowings in local currency
Non-current - borrowings in foreign currency
Total non-current
* The original cost of this working capital loan is foreign exchange variation + interest of 3.00% p.a.,
and the reported cost of 111.20% of the CDI and the amount of R$ 27,808 relate to the swap contract
for this facility.
The decrease in borrowings is due to the settlement of certain agreements, principally to the National
Bank for Economic and Social Development (BNDES) and commercial banks (Export Credit Note
(NCE)).
39
At March 31, 2016, the amounts relating to non-current liabilities (79% and 69% of total borrowings
for the parent company and consolidated accounts, respectively) have the following maturities per
year:
Parent company
03/31/2016
12/31/2015
2017
2018
2019
2020
2021
2022
2023
2024
Consolidated
03/31/2016
12/31/2015
92.697
100.592
9.258
9.258
9.258
9.258
9.258
1.543
112.554
100.592
9.258
9.258
9.258
9.258
9.258
1.543
122.884
103.973
9.258
9.258
9.258
9.258
9.258
1.543
147.554
103.592
9.258
9.258
9.258
9.258
9.258
1.543
241.122
260.979
274.690
298.979
Restrictive covenants
In the BNDES-Exim and NCE (66% and 57% of borrowings in the parent company and consolidated
accounts, respectively) there are accelerated maturity clauses related mainly to the use of funds for a
purpose other than that established in the credit facility agreements with the financial institutions. No
guarantees were provided for these credit lines. For this financing, product export supporting
documents are required.
BNDES-Finem: This financing was obtained from the National Bank for Economic and Social
Development (BNDES) for developing new products and processes and acquiring machinery and
equipment, and is collateralized by a bank guarantee maturing on April 17, 2017. This contract
contains accelerated maturity clauses related mainly to the non-performance of the project and/or
acquisition of the financed asset.
FINEP: This financing was obtained from the Financing Agency for Studies and Projects (FINEP) to
partially fund (at an average of 64%) the expenses incurred in several projects of the program
"Innovation in MAHLE Components and Systems", and is collateralized by a bank guarantee with
maturity on August 30, 2021. This financing is based on the TJLP interest rate (7,5% p.a. as at March
31, 2016) plus a bank spread of 5% p.a. less an equalization rate of 6% p.a. There are various
accelerated maturity clauses (respecting ample defense for the Company) with loss of the equalization
value: use of funds for a purpose other than that established in the contract; change in effective control
of the Company; existence of FINEP amounts in arrears; inaccurate information provided to FINEP by
the Company; and suspension of the project.
At March 31, 2016 and December 31, 2015, the Company had no payment of principal or interest in
arrears and was not in breach of any of the covenants under the BNDES-Exim, BNDES-Finem,
working capital, NCE and FINEP contracts.
40
18
Parent company
03/31/2016
Accrued vacation pay / 13th month salary
Employee profit sharing
INSS /FGTS
Other social security obligations
19
Consolidated
12/31/2015
03/31/2016
12/31/2015
30.894
33.933
9.467
1.596
29.804
22.811
11.284
635
33.366
40.367
10.108
4.684
32.420
28.858
12.132
5.193
75.890
64.534
88.525
78.603
Sundry provision
Parent company
Losses on
contracts
Electric
power
Restructuring
Employee
benefits
Other
Total
6.877
3.739
320
5.380
-
690
17.006
-
(2.717)
2.199
(320)
-
(5.380)
7.384
620
(89)
1.951
(5.380)
(3.126)
12.154
6.877
3.221
-
7.384
620
2.552
20.654
Reversal
Payment
Complement
At March 31, 2016
Commercial
bonuses
Consolidated
Losses on
contracts
Reversal
Payment
Complement
At March 31, 2016
Commercial
bonuses
Restructuring
Electric
power
Employee
benefits
Other
Total
9.280
3.737
6.486
6.358
-
2.435
28.296
-
(2.715)
2.199
-
(320)
(2.158)
830
-
(6.358)
8.449
-
652
-
(264)
2.758
(186)
(6.678)
(5.137)
14.888
(186)
9.280
3.221
4.838
8.449
652
4.743
31.183
41
20
Provision for warranties
The Group guarantees the quality of its products, assuming responsibility for providing replacements
and repairs for customers for defective products.
Parent company
Consolidated
11.913
17.083
Reversal
Payment
Complement
(1.161)
11.736
-
(56)
(1.350)
13.025
(212)
At March 31, 2016
22.488
28.490
At March 31, 2016, the Company provided for R$ 10,135 for quality problems in bearings product
line.
21
Provision for contingencies and judicial deposits linked to judicial proceedings
The Company is a party to civil, labor and tax proceedings in progress both at the administrative and
judicial level, which, when applicable, are supported by judicial deposits. The respective provision for
contingencies was recorded considering the estimates made by the legal advisors for proceedings in
which the likelihood of loss on the respective outcomes was assessed as probable and other unrelated
legal obligations.
42
According to management's assessment, contingencies are as follows:
Parent company
Civil and
labor
Additions
Monetary restatements
Write-off for use
Write-off for reversal
Transfer
At March 31, 2016
220.307
10.344
7.296
(4.904)
(4.558)
228.485
Tax
34.760
936
(462)
35.234
Environmental
liability
7.547
217
(210)
(217)
7.337
Judicial
deposits
(65.335)
(4.650)
(895)
684
1.233
(528)
(69.491)
Total
197.279
5.911
7.337
(4.430)
(4.004)
(528)
201.565
Consolidated
Civil and
labor
Additions
Monetary restatements
Write-off for use
Write-off for reversal
Transfer
At March 31, 2016
238.901
12.249
7.833
(6.504)
(5.184)
(171)
247.124
Tax
34.901
946
(469)
35.378
Environmental
liability
7.550
1.232
(210)
(217)
8.355
Judicial
deposits
(70.910)
(5.470)
(958)
1.024
1.735
(525)
(75.104)
Total
210.442
8.011
7.821
(5.690)
(4.135)
(525)
(171)
215.753
The civil provision is related to consumer relations, compensation claims for commercial
representation and distribution, service providers, work accidents and professional fees.
The labor provision relates mainly of claims filed by former employees for sums of money resulting
from employment relationships and various suits for damages.
Transfers relate to judicial deposits not related to the balance of provision for contingencies, and
therefore, they are reclassified to other asset accounts.
The tax provision with respect to PIS, COFINS, ICMS, IPI, social security, royalties and drawbacks
relates mainly to state and federal procedural assessments that are already being heard in court or not.
They refer mainly to litigation with respect to the appropriate interpretation of the tax legislation.
The environmental provision relates mainly to the projection of expenditure required to preserve
environmental areas used by the Group.
The main indexes for monetarily restating the contingencies are the basic interest rate (SELIC) and the
monetary restatement indexes provided by the Superior Labor Court and law courts, when applicable.
43
Proceedings involving the risk of possible loss
At March 31, 2016, the Group had labor, civil and tax proceedings brought before the proper
authorities in the amount of R$ 39,643 (December 31, 2015 - R$ 39,314), which were assessed by the
Company's management as having a risk of possible loss, and, therefore, were not provided for in the
financial statements.
22
Equity
a. Share capital
At March 31, 2016 and December, 31 2015, subscribed and paid-up capital was represented by the
following number of shares with no par value:
Number of shares
Mahle Indústria e Comércio Ltda.
76,985,131 60.0%
Mahle Industriebeteiligungen GmbH
12,830,850 10.0%
Non-controlling shareholders
38,492,519 30.0%
128,308,500
100%
The Company is authorized to increase its capital up to the limit of R$ 50,000,000 (fifty million)
common shares, regardless of statutory reform, by resolution of the Board of Directors, which will
determine the number of shares issued, the period of issuance and payment conditions.
On March 31, 2016, the market value of the Company's common shares corresponded the price of
R$ 23.56 per share (R$ 24.75 on December 31, 2015).
There were no changes in the policies regarding dividends, interest on capital and revenue reserves
in relation to those applied in the financial statements for the year ended December 31, 2015.
b. Other comprehensive income
Carrying value adjustments
The Company recognizes under this heading:
•
The effects of carrying value adjustments relating to the effective portion of gains or
losses on cash flow hedges, which are recognized in March,31 2016, net of taxes, at
R$ 24,603 (At March 31, 2015 – (R$ 13,153)) in the parent and at R$ 22,964 (At March
31, 2015 – (R$ 12,456)) in the consolidated accounts, and of those relating to the
44
subsidiary MAHLE Metal Leve Miba Sinterizados Ltda., which are recognized at
(R$ 981) (At March 31, 2015 - R$ 417).
•
23
The adjustments for the adoption of the deemed cost of property, plant and equipment at
R$ 1,142 at March 31, 2016 (At March , 31 2015 - R$ 1,948). The deemed cost is
accrued to property, plant and equipment recorded in carrying value adjustments,
according to the depreciation, disposal or write-off of the respective item of property,
plant and equipment, against retained earnings.
Earnings per share
In compliance with CVM Resolution 636/2010 which approved Technical Pronouncement NBC TG
41 (CPC 41)-/-“IAS 33 - Earnings per share”, the Company presents the following information on
earnings per share:
03/31/2016
Profit attributable to owners of the parent
Shares outstanding
Basic earnings per share (R$ per share)
24
03/31/2015
73.888
47.548
128.308.500
128.308.500
0,57586
0,37058
Parent company
Consolidated
03/31/2016
03/31/2015
03/31/2016
03/31/2015
Gross revenue
Deductions from sales:
Taxes on sales
Discounts and returns
557.476
570.526
717.283
729.694
(106.699)
(2.732)
(111.219)
(2.415)
(112.903)
(29.656)
(125.592)
(24.739)
448.045
456.892
574.724
579.363
45
25
Cost of sales
The cost of sales comprises raw materials and other materials required for the production of the
Company's products. In the engine components segment, the main raw materials are metal
commodities, such as aluminum, nickel iron, cast iron, steel, copper, nickel, tin, silicon, magnesium,
bronze and iron alloy, amongst others. In the filters segment, the main raw materials are resins, filter
papers and activated carbon, amongst others. Other inputs for the production of both engine
components and filters include electric power, fuels, natural gas, liquefied petroleum gas and plastic,
wood, paper and cardboard packaging.
This account also includes direct labor (e.g. factory work) and indirect labor (e.g. maintenance,
engineering and tooling) and the depreciation of machinery and equipment used in the production
process.
26
Selling expenses
Selling expenses by nature are as follows:
Parent company
03/31/2016
Personnel and benefits
Freight
Variable selling expenses
General expenses
Brand license
Professional services/service orders
Travel and entertainment allowance
Advertising
Depreciation
(Reversal of) provision for impairment of trade receivables
Other expenses
46
Consolidated
03/31/2015
03/31/2016
03/31/2015
(9.734)
(7.675)
(2.256)
(2.621)
(1.970)
(1.377)
(556)
(392)
(211)
1.239
(1.711)
(9.973)
(7.343)
(2.828)
(2.441)
(2.363)
(1.232)
(636)
(1.270)
(235)
292
(1.913)
(12.215)
(10.082)
(4.651)
(4.068)
(2.306)
(2.289)
(705)
(692)
(255)
1.281
(2.120)
(12.897)
(10.105)
(5.008)
(3.713)
(2.608)
(2.051)
(794)
(1.598)
(282)
(401)
(2.238)
(27.264)
(29.942)
(38.102)
(41.695)
27
General and administrative expenses
General and administrative expenses by nature are as follows:
Parent company
03/31/2016
Management
Materials and utilities
Depreciation
Maintenance
PIS/COFINS
Travel and entertainment allowance
Insurance
Other expenses
28
Consolidated
03/31/2015
03/31/2016
03/31/2015
(7.687)
(3.884)
(1.454)
(814)
(803)
(657)
(326)
(233)
114
(1.111)
(7.276)
(2.367)
(1.131)
(812)
(702)
(574)
(134)
(226)
(34)
(1.022)
(9.292)
(4.099)
(2.529)
(1.468)
(860)
(869)
(341)
(306)
19
(1.858)
(8.573)
(2.564)
(1.832)
(915)
(771)
(631)
(135)
(293)
(134)
(1.115)
(16.855)
(14.278)
(21.603)
(16.963)
Technology and product development costs
The costs of technology and product development by nature are as follows:
Parent company
03/31/2016
Materials/utilities
General expenses
Depreciation
Maintenance
Other expenses
03/31/2015
Consolidated
03/31/2016
03/31/2015
(12.217)
(2.414)
(1.162)
(1.110)
(1.698)
(601)
(363)
(11.954)
(2.015)
(266)
(1.070)
(1.669)
(288)
(350)
(12.732)
(2.482)
(2.145)
(1.887)
(1.734)
(602)
(464)
(12.564)
(2.044)
(1.897)
(1.481)
(1.704)
(288)
(394)
(19.565)
(17.612)
(22.046)
(20.372)
47
29
Finance income and costs, net
Parent company
03/31/2016
03/31/2015
Finance income
Derivative financial instruments (c)
Exchange variation (a)
Interest
Monetary variation gains
Other
Finance costs
Exchange variations (b)
Monetary variation losses
Interest
Derivative financial instruments (d)
Other
Finance income (costs), net
Summary of foreign exchange variations (a+b)
Trade receivables
Interest on capital receivable
Trade payables
Other
Summary of derivative instruments (c+d)
Income
Expenses
Net result of foreign exchange variations and
derivative financial instruments
Consolidated
03/31/2016
03/31/2015
17.739
10.875
3.039
1.386
47
33.086
5.929
39.816
8.602
1.466
69
55.882
15.429
31.781
3.393
1.451
507
52.561
6.074
49.205
8.924
1.505
72
65.780
(25.174)
(8.375)
(5.432)
(1.705)
(370)
(41.056)
(13.191)
(6.098)
(7.120)
(28.318)
(170)
(54.897)
(39.451)
(8.922)
(12.934)
(1.709)
(1.840)
(64.856)
(20.144)
(6.515)
(13.776)
(28.943)
(1.925)
(71.303)
(5.523)
(7.970)
985
(12.295)
(14.299)
26.625
(7.670)
(9.288)
(3.652)
(2.109)
763
(13)
16.034
22.106
5.981
2.734
(4.183)
(13)
(22.389)
(1.114)
(4.000)
(2.109)
(2.597)
2.150
13.720
29.061
27.769
6.862
2.734
(8.296)
(8)
(22.869)
17.739
(1.705)
5.929
(28.318)
15.429
(1.709)
6.074
(28.943)
1.735
4.236
6.050
6.192
48
30
Other operating income and expenses, net
Parent company
Consolidated
03/31/2016
03/31/2015
03/31/2016
03/31/2015
4.558
462
426
237
217
35
613
5.462
4
10.068
4.399
43
606
5.184
469
524
243
217
1.743
320
121
640
5.655
4
10.881
4.590
43
61
1.576
6.548
20.582
9.461
22.810
Other income
Reversal of provision for labor contingencies
Reversal of provision for tax contingencies
Electric power (*)
Taxes recovered (Reintegra)
Reversal of provision for environmental liability
Gains on disposal of assets
Reversal of provision for restructuring
Reversal of provision for obsolescence
Other income
Other expenses
Provision for labor contingencies
Electric power
Provision for environmental liability
Losses on disposal of assets
Provision for tax contingencies
Other expenses
(10.344)
(1.570)
(217)
(65)
(766)
(9.091)
(4.141)
(175)
(67)
(5.006)
(369)
(12.249)
(2.110)
(256)
(717)
(1.241)
(9.849)
(4.216)
(238)
(67)
(5.006)
(1.931)
(12.962)
(18.849)
(16.573)
(21.307)
(6.414)
1.733
(7.112)
1.503
(*) Financial settlement of electric power on the spot market.
49
31
Financial instruments
I.
Financial instruments and risk management
Financial instruments are used to assure the Company's continuity, liquidity and profitability, and
there is no speculative purpose. The financial instruments are recorded in the financial statements
and classified in conformity with CPC 40 (IFRS 7), allowing the reader to assess the Company's
financial position. The table below shows the classification of the financial instruments.
Parent company
03/31/2016
Assets
Note
Cash, demand deposits and cash in transit
6
6
7
7/10
Trade receivables
Receivables from and loans to related parties
Unrealized gains on derivatives
Note
Payables to related parties
10/15
15
17
31
Borrowings
Unrealized losses on derivatives
456.139
Liabilities
Trade payables
24.817
70.045
253.487
107.790
31
Total
Assets at fair value
Derivatives used
through profit or
for hedge
loss
Loans and
receivables
Liabilities
measured at fair
value through
profit or loss
-
Total
-
-
Note
6
6
7
7/10
31
Total
Liabilities
Note
10/15
15
17
31
Trade payables
Borrowings
Total
-
24.817
70.045
253.487
107.790
-
18.842
-
18.842
18.842
-
474.981
Derivatives used
for hedge
Other financial liabilities
Total
(22.629)
(22.845)
(66.914)
(305.607)
-
(22.845)
(66.914)
(305.607)
(22.629)
(22.629)
(395.366)
(417.995)
Parent company
Assets
Trade receivables
-
Total
-
12/31/2015
Available for sale
Loans and
receivables
Derivatives used
through profit or
for hedge
loss
Available for sale
Total
22.020
111.975
244.231
108.397
-
-
5.036
-
22.020
111.975
244.231
108.397
5.036
486.623
-
5.036
-
491.659
Liabilities
measured at fair
value through
profit or loss
-
50
Derivatives used
for hedge
(55.420)
(55.420)
(36.263)
(60.780)
(358.781)
(455.824)
Total
(36.263)
(60.780)
(358.781)
(55.420)
(511.244)
Consolidated
03/31/2016
Assets
Note
6
6
7
7/10
31
Trade receivables
Total
Liabilities
Note
10/15
15
17
31
Trade payables
Borrowings
Derivatives used
through profit or
for hedge
loss
Loans and
receivables
-
20.099
-
35.893
78.960
352.749
92.792
20.099
560.394
-
20.099
-
580.493
Liabilities
measured at fair
value through
profit or loss
-
Derivatives used
for hedge
Note
6
6
7
7/10
31
Total
Liabilities
Note
10/15
15
17
31
Trade payables
Borrowings
Total
Total
(28.900)
(88.802)
(397.122)
-
-
(28.900)
(88.802)
(397.122)
(22.754)
(22.754)
(514.824)
-
(537.578)
Consolidated
Assets
(22.754)
12/31/2015
Trade receivables
Total
35.893
78.960
352.749
92.792
-
Total
Available for sale
Derivatives used
through profit or
for hedge
loss
Loans and
receivables
Available for sale
Total
33.148
118.945
338.612
87.769
-
-
8.550
-
33.148
118.945
338.612
87.769
8.550
578.474
-
8.550
-
587.024
Liabilities
measured at fair
value through
profit or loss
-
51
Derivatives used
for hedge
Total
(55.456)
(38.083)
(89.360)
(479.681)
-
-
(38.083)
(89.360)
(479.681)
(55.456)
(55.456)
(607.124)
-
(662.580)
- Fair value hierarchy and measurement
The financial instruments that are measured at fair value after initial recognition must be grouped in
Levels 1 to 3 based on the observable level of the fair value.
The Company presents financial instruments only within Level 2, whose valuation is based on inputs
other than quoted prices included in Level 1, that are observable for the asset or liability, either
directly (that is, as prices) or indirectly (that is, derived from prices).
The following table presents the financial instruments that are measured at fair value after initial
recognition:
03/31/2016
Assets
Total
Liabilities
Total
12/31/2015
Assets
Total
Liabilities
Total
Measured at fair value
Parent company
Consolidated
Total
Level 2
Total
Level 2
18.842
18.842
20.099
20.099
18.842
18.842
20.099
20.099
(22.629)
(22.629)
(22.754)
(22.754)
(22.629)
(22.629)
(22.754)
(22.754)
Measured at fair value
Parent company
Consolidated
Total
Level 2
Total
Level 2
5.036
5.036
8.550
8.550
5.036
5.036
8.550
8.550
(55.420)
(55.420)
(55.456)
(55.456)
(55.420)
(55.420)
(55.456)
(55.456)
52
- Fair value calculation
Level 2 - Derivative financial instruments were included in this level. The value of these
instruments was determined as follows:
- The values of derivative financial instruments (NDFs) were calculated using the
discounted cash flow method, which consists of:
a) The difference between the future exchange rate contracted for the settlement of each
contract, and the future exchange rate of BM&FBovespa valid for the mark-to-market
(MTM) date of the US dollar, euro and yen is determined. In the absence of a future
rate for the maturity date disclosed by BM&FBovespa, an interpolation is made of
the rate for that date;
b) The result of the above difference is multiplied by the notional value of each
operation;
c) The amounts obtained in item "b" are brought to present value at the Interbank
Deposit (DI) curve of BM&FBovespa valid for the MTM date.
- The values of commodity derivative financial instruments are calculated using the
"market fair value", i.e.:
a)
The difference between the future price of the metal (USD/tons) contracted for the
settlement of each contract, and the future price of the metal (USD/tons) published
by Bloomberg for the maturity date of each contract, valid on the MTM date. In the
absence of a future price for the maturity date of a given contract, an interpolation is
made of the price of the metal for that date;
b)
The result of the above difference is multiplied by the contracted volume in tons and
the US dollar rate (Ptax sale) valid for the MTM date.
53
- Fair value versus carrying amount
The fair values of financial assets and liabilities and the carrying amounts presented in the balance
sheet are as follows:
Consolidated
Assets
Note
Trade receivables
Total
6
6
7
7/10
31
03/31/2016
Carrying
Fair value
amount
35.893
35.893
78.960
78.960
352.749
352.749
92.792
92.792
20.099
20.099
580.493
580.493
12/31/2015
Carrying
Fair value
amount
33.148
33.148
118.945
118.945
338.612
338.612
87.769
87.769
8.550
8.550
587.024
587.024
Liabilities
Payables to related parties and loans
Trade payables
Borrowings
Total
10/15
15
17
31
(28.900)
(88.802)
(397.122)
(22.754)
(537.578)
(28.900)
(88.802)
(397.122)
(22.754)
(537.578)
(38.083)
(89.360)
(479.681)
(55.456)
(662.580)
(38.083)
(89.360)
(479.681)
(55.456)
(662.580)
Financial investments in CDBs and similar instruments have daily liquidity with repurchase on the
"paper curve" and, accordingly, the Company believes that their fair value is equivalent to their
carrying amount.
As for borrowings, the Company believes that their fair value corresponds to their carrying
amount. Borrowings are recorded at their original amounts; interest is recognized on a monthly
basis; most borrowings (57,2% in the consolidated accounts, equivalent to R$ 227.166) are
transactions that may be settled at any time (at the discretion of the Company) at the carrying
value, with no charges.
As for trade receivables, receivables from related parties, trade payables and payables to related
parties, the Company believes that the variation between their original maturities and the date of
the financial statements is immaterial.
54
- Hedge accounting
The Company adopts hedge accounting to minimize its exposure to volatility in currency and
commodity price. The hedge accounting policy is properly formalized and sets out the hedged
items; the authorized hedging instruments; and the method of assessing the effectiveness of the
hedging relationship.
Hedging objective and strategy:
Currency hedge
The purpose of the currency hedge program is to minimize foreign exchange risks that may
arise in adverse times in the market and that may adversely affect the Company’s profitability.
The foreign exchange hedging policy is to hedge the entire position of budgeted cash flow
(budget) as well as the actual cash flow (balance sheet) denominated and/or indexed in a
foreign currency using derivative financial instruments (NDF - Non-deliverable Forwards).
The Company also hedges borrowings in foreign currency using swaps.
For the budgeted cash flow, this policy covers different levels and time horizons, so as to
reach the following levels of hedge at the end of the current month (base date):
i) 75% of the net foreign exchange risk exposure – 1st to 6th month following the base date;
ii) 50% of the net foreign exchange risk exposure – 7th to 9th month following the base date;
and
iii) 25% of the net foreign exchange risk exposure – 10th to 24th month following the base
date.
The net foreign exchange risk exposure for the months following the time horizon of the
budget will be based on the budget itself or its latest version (reviewed by the business areas
on a quarterly basis).
For the actual cash flow, the policy is to hedge 100% of the net foreign exchange risk
exposure (denominated and/or indexed in a foreign currency).
Commodity hedging (metal raw materials)
The purpose of the commodity hedging program is to minimize the risks of fluctuations in
metal raw material prices (aluminum, nickel and copper) quoted on the London Metal
Exchange (LME), which may arise during adverse times in the market and which would
adversely affect the Company’s profitability.
The commodity hedging policy hedges the planned volumes of budgeted cash flows (budget)
using swaps.
55
The execution of this policy covers different levels and time horizons so as to reach the
following levels of hedge at the end of each quarter of the calendar year (base date):
Year 1:
i)
75% of the net exposure – 1st and 2nd quarter subsequent to the base date;
ii)
50% of the net exposure – 3rd quarter subsequent to the base date; and
iii)
25% of the net exposure – 4th quarter subsequent to the base date.
Year 2/Year 3:
i) up to 25% of the net exposure
The percentage of the commodity hedging operations for the Year 2 and Year 3 subsequent to
the base date shall be defined by the Global Committee together with the Regional
Procurement Department. This decision shall be based on a study of historical average prices
of metals for the last 5 and 10 years versus the prices quoted on the LME at the time of the
hedging operations.
The net exposure for the quarters following the time horizon of the budget will be based on the
budget itself or its latest version (reviewed by the business areas on a quarterly basis).
II.
Risk management
Overview
It is the Company's practice to take a conservative approach to the management of existing risks,
with the primary objectives of preserving the value and liquidity of the financial assets and
guaranteeing financial resources for the good conduct of its business, including expansions.
Basically, risks are classified into two categories: strategic/operational and economic/financial.
a) Strategic/operational risks (including, but not limited to, demand behavior, competition and
significant changes in industry structure) are addressed by the Company's management model.
These are classified as operational risk and business risk. These risk factors were presented in
detail in the financial statements for the year ended December 31, 2015.
b) Economic/financial risks mainly reflect the behavior of macroeconomic variables, such as the
prices of metals used by the Company (aluminum, copper and nickel), exchange and interest
rates, which have direct impacts on operations, as well as the characteristics of the financial
instruments used by the Company. These risks are monitored by senior management, which is
actively involved in the Company's operational management, by reference to the Group's
global policies.
56
The main economic/financial risks considered by the Company include:
•
•
•
•
•
Liquidity risk;
Credit risk;
Risk of fluctuation in interest rates;
Risk of fluctuation in exchange rates;
Market risk - fluctuations in the prices of inputs (commodities).
b.1) Liquidity risk
The table below shows the contractual maturities of financial liabilities, including estimated
interest payments and excluding the impact of currency negotiation agreements at the net
position.
03/31/2016
Consolidated
Note
Liabilities
Trade payables
Borrowings
10/15
15
17
31
Total
Carrying
amount
Up to 1
year
1-2
years
2-5
years
(28.900)
(88.802)
(397.122)
(22.754)
(28.900)
(88.802)
(149.665)
(22.754)
(155.076)
-
(126.180)
-
(36.164)
-
(537.578)
(290.121)
(155.076)
(126.180)
(36.164)
Consolidated
12/31/2015
Note
Liabilities
Trade payables
Borrowings
More than
5 years
10/15
15
17
31
Total
Carrying
amount
Up to 1
year
1-2
years
2-5
years
(37.916)
(89.360)
(479.681)
(55.456)
(37.916)
(89.360)
(204.918)
(55.456)
(172.168)
-
(166.070)
-
(14.201)
-
(662.413)
(387.650)
(172.168)
(166.070)
(14.201)
More than
5 years
The Company did not consider in 2015 the loan amount of R$ 167 in the table above, since
management does not intend to collect this loan in the next 12 months and the loan does not have a
definite maturity date.
The flows shown above are not expected to be realized earlier.
57
b.2) Credit risk
The carrying amount of financial assets that represent the maximum exposure to credit risk on
the date of these financial statements was as follows:
Parent company
Assets
Note
Trade receivables
03/31/2016
6
6
7
7/10
Total
12/31/2015
Consolidated
03/31/2016
12/31/2015
24.817
70.045
253.487
107.790
22.020
111.975
244.231
108.397
35.893
78.960
352.749
92.792
33.148
118.945
338.612
87.769
456.139
486.623
560.394
578.474
The Company also has policies for granting credit to its customers, where credit limits and
monitoring criteria are pre-established and consist of systematic checking and pre-billing to
verify items such as late payments and the available balance of the invoicing limit. Market
information on customers is also important in the context of the granting and management of
credit.
The Company considers that there is no significant risk of concentration of credit in relation to
customers:
Trade receivables
Counterparties with external credit rating ( Standard & Poor's)
Parent Company
Counterparties without
external credit rating
Consolidated
03/31/2016
12/31/2015
03/31/2016
12/31/2015
88.832
171.828
70.023
81.765
171.708
75.043
142.249
218.397
62.277
132.154
216.517
59.134
330.683
328.516
422.923
407.805
Top 20
Third parties
Intercompanies
Total trade receivables
With respect to financial institutions, the Company operates only with banks with a minimum
risk rating of AA (Fitch National Long-Term or equivalent from Moody's or Standard &
Poor's).
58
The table below presents the risk rating of financial investments, cash and cash in transit.
Parent company
Cash, demand deposits and financial investments
Nota
AAA *
6
03/31/2016
Consolidated
12/31/2015
94.862
03/31/2016
133.994
12/31/2015
104.838
143.402
-
1
10.015
8.691
94.862
133.995
114.853
152.093
Others
* Fitch National Long Term
b.3) Risk of fluctuation in interest rates
The carrying value of financial instruments that represent the maximum exposure to the
interest rate risk on the balance sheet date was:
Parent company
Note
Borrowings
6
6
17
Total
03/31/2016
12/31/2015
Consolidated
03/31/2016
12/31/2015
24.817
70.045
(305.607)
22.020
111.975
(358.781)
35.893
78.960
(397.122)
33.148
118.945
(479.681)
(210.745)
(224.786)
(282.269)
(327.588)
At March 31, 2016, of the parent company and consolidated borrowing balances of
R$ 305,607 and R$ 397,122 – 65.81% and 57.20%, respectively, relate to BNDES-Exim
funding transactions with the BNDES and NCE transactions, at fixed rates.
This rate condition being considered, the Company believes that fluctuations in interest rates
will not result in any material impact on its results. Accordingly, the Company maintains
financial assets or liabilities bearing fixed interest rates at amortized cost and does not
designate derivatives (interest rate swaps) as hedging instruments under a fair value hedge
accounting model, or carries out sensitivity analyses for the interest rate variation.
59
b.4) Risk of fluctuation in exchange rates
At March 31, 2016, the Company's exposure in USD (EUR and JPY equivalents in USD) was
USD 15,302 thousand in the parent company and USD 16,623 thousand in the consolidated
accounts, as shown below:
Foreign exchange exposure arising from accounts receivable and payable in foreign currency at March 31, 2016
(+)
(+)
(-)
(-)
Item
Trade receivables
Demand deposits (in foreign currency)
Imports
Currency forwards - sale
USD thousand
EUR thousand (*)
JPY thousand (**)
31.332
32.430
3.889
4.055
(6.745)
(6.990)
(16.300)
(16.574)
10.666
11.137
3.046
3.081
(4.760)
(4.760)
(6.222)
(6.222)
47.445
47.445
(139.287)
(139.287)
93.623
93.623
( = ) Net balance of foreign exchange exposure
12.176
12.921
2.730
3.236
1.781
1.781
Net balance of foreign exchange exposure in USD (EUR and JPY equivalents in USD) - in thousands
Currency
Parent company
Consolidated
USD
12.176
12.921
EUR
3.110
3.686 (*) EUR/USD parity 1.1391
JPY
16
16 (**) JPY/USD parity 112,40998
Total
15.302
16.623
Additionally, we present the notional value of NDFs for hedging the Company’s budget:
Ano
2016
2017
2018
Controladora (USD)
Hedge
Exposure
37.958
21.712
36.060
12.575
36.060
2.366
Total
36.653
Ano
2016
2017
2018
Controladora (EUR)
Hedge
Exposure
43.256
21.342
41.093
10.884
41.093
2.500
Total
34.726
Ano
2016
2017
2018
Controladora (JPY)
Hedge
Exposure
(710.234)
399.668
(674.723)
214.252
(674.723)
28.688
Total
642.608
%
57,20%
34,87%
6,56%
%
49,34%
26,49%
6,08%
%
-56,27%
-31,75%
-4,25%
Ano
2016
2017
2018
Consolidado (USD)
Exposure Hedge
35.514
20.576
33.738
11.549
33.738
2.366
Total
34.491
Ano
2016
2017
2018
Consolidado (EUR)
Exposure Hedge
43.122
21.342
40.966
10.884
40.966
2.500
Total
34.726
Ano
2016
2017
2018
Consolidado (JPY)
Exposure Hedge
(710.234) 399.668
(674.723) 214.252
(674.723)
28.688
Total
642.608
60
%
57,94%
34,23%
7,01%
%
49,49%
26,57%
6,10%
%
-56,27%
-31,75%
-4,25%
- Sensitivity analysis
For the purposes of carrying out sensitivity analysis of market risks, the Company analyzes
together asset and liability positions indexed to a foreign currency.
For the sensitivity analysis of transactions indexed in foreign currency, management adopted as a
probable scenario the amounts accounted for and determined at the exchange rates disclosed by
the Brazilian Central Bank. For other scenarios, the depreciation and appreciation of the exchange
rates were considered as references for calculating the amounts recorded in the books under those
scenarios. The other scenarios were estimated with appreciation and depreciation of the real of
25% and 50%, compared to the probable scenario.
The methodology adopted for the calculation of the balances in the table below consisted of
replacing the closing foreign exchange rate used for the purposes of accounting records with the
stressed rates, in accordance with the scenarios below:
61
Sensitivity analysis table
The selling rates published on March 31, 2016 by the Brazilian Central Bank for USD, EUR and
JPY were used in this sensitivity analysis.
Parent company
USD/BRL
exchange rate for
settlement of bills
of exchange
* Net balance of
foreign exchange
exposure - USD
Consolidated
** Average
rate of bills of
exchange
Total
BRL
USD/BRL
exchange rate for
settlement of bills
of exchange
* Net balance of
foreign exchange
exposure - USD
** Average
rate of bills of
exchange
Total
BRL
50% better
5,3400
20.554
5,3400
12.921
3,6551
21.771
4,4500
12.176
0
12.176
3,6519
25% better
3,6519
9.718
4,4500
12.921
3,6551
10.271
Balance sheet date
3,5589
12.176
3,6519
(1.132)
3,5589
12.921
3,6551
(1.243)
25% worse
2,6700
3,6519
(11.956)
2,6700
(12.728)
1,7800
3,6519
(22.792)
1,7800
12.921
0
12.921
3,6551
50% worse
12.176
0
12.176
3,6551
(24.228)
(*) Amounts in thousands
(**) Average rate of remittance of the bills of exchange that comprise the net balance of foreign exchange exposure
Parent company
EUR/BRL
exchange rate for
settlement of bills
of exchange
* Net balance of
foreign exchange
exposure - EUR
Consolidated
** Average
rate of bills of
exchange
Total
BRL
EUR/BRL
exchange rate for
settlement of bills
of exchange
* Net balance of
foreign exchange
exposure - EUR
** Average
rate of bills of
exchange
Total
BRL
50% better
6,0800
2.730
4,0058
5.663
6,0800
3.236
3,9918
6.757
25% better
5,0700
2.730
4,0058
2.905
5,0700
3.236
3,9918
3.489
Balance sheet date
4,0539
2.730
4,0058
131
4,0539
3.236
3,9918
25% worse
3,0400
2.730
4,0058
(2.637)
3,0400
3.236
3,9918
(3.080)
50% worse
2,0300
2.730
4,0058
(5.394)
2,0300
3.236
3,9918
(6.348)
201
Parent company
JPY/BRL
exchange rate for
settlement of bills
of exchange
* Net balance of
foreign exchange
exposure - JPY
Consolidated
** Average
rate of bills of
exchange
Total
BRL
JPY/BRL
exchange rate for
settlement of bills
of exchange
* Net balance of
foreign exchange
exposure - JPY
** Average
rate of bills of
exchange
Total
BRL
50% better
0,05000
1.781
0,04353
12
0,05000
1.781
0,04353
25% better
0,04000
1.781
0,04353
(6)
0,04000
1.781
0,04353
(6)
Balance sheet date
0,03166
1.781
0,04353
(21)
0,03166
1.781
0,04353
(21)
25% worse
0,02000
1.781
0,04353
(42)
0,02000
1.781
0,04353
(42)
50% worse
0,02000
1.781
0,04353
(42)
0,02000
1.781
0,04353
(42)
62
12
Budgeted cash flow - exposure in foreign currency
The Company projects and conducts its transactions based on its current cash flows, which means that subsequent changes in the exchange rates can result in expenditure for
the Company. To hedge its future cash flow against currency fluctuations, the Company uses forward contracts for USD, EUR and JPY (NDF).
Sensitivity analysis table
Parent company sensitivity analysis table – cash flow derivatives portfolio for the period ended March 31, 2016
Scenario
USD/BRL
exchange rate for
settlement of
operations
Notional
value - USD
(thousand)
Weighted
average rate at
maturity
(*)
EUR/BRL
Adjustment
exchange rate for
in R$
settlement of
thousand
operations
(USD/EUR)
Notional
value - EUR
(thousand)
Weighted
average rate at
maturity (*)
JPY/BRL
Adjustment
exchange rate for
in R$
settlement of
thousand
operations
Notional
value - JPY
(thousand)
Weighted
average rate at
maturity
(*)
Adjustment
in R$
thousand
Total
adjustment
in R$
thousand
Total effect of
Net effect on
adjustments
profit or loss on equity - R$
R$ thousand
thousand
100,00%
0,00%
50% better
1,7795
36.653
3,6064
66.963
2,0270
34.726
4,4367
83.680
0,0475
(642.608)
0,0329
9.376
160.019
160.019
-
25% better
2,6692
36.653
3,6064
34.352
3,0404
34.726
4,4367
48.487
0,0396
(642.608)
0,0329
4.289
87.128
87.128
-
Balance sheet date
3,5589
36.653
3,6064
1.741
4,0539
34.726
4,4367
13.293
0,0317
(642.608)
0,0329
(797)
14.237
14.237
-
25% worse
4,4486
36.653
3,6064
(30.870)
5,0674
34.726
4,4367
(21.901)
0,0237
(642.608)
0,0329
(5.883)
(58.654)
(58.654)
-
50% worse
5,3384
36.653
3,6064
(63.481)
6,0809
34.726
4,4367
(57.094)
0,0158
(642.608)
0,0329
(10.969)
(131.544)
(131.544)
-
Adjustment
in R$
thousand
Total
adjustment
in R$
thousand
Consolidated sensitivity analysis table – cash flow derivatives portfolio for the period ended March 31, 2016
EUR/BRL
Adjustment
exchange rate for
in R$
settlement of
thousand
operations
(USD/EUR)
Scenario
USD/BRL
exchange rate for
settlement of
operations
50% better
1,7795
34.491
3,6064
63.013
2,0270
34.726
4,4367
83.680
0,0475
(642.608)
0,0329
9.376
156.069
156.069
-
25% better
2,6692
34.491
3,6064
32.326
3,0404
34.726
4,4367
48.487
0,0396
(642.608)
0,0329
4.289
85.102
85.102
-
Balance sheet date
3,5589
34.491
3,6064
1.638
4,0539
34.726
4,4367
13.293
0,0317
(642.608)
0,0329
(797)
14.134
14.134
-
25% worse
4,4486
34.491
3,6064
(29.049)
5,0674
34.726
4,4367
(21.901)
0,0237
(642.608)
0,0329
(5.883)
(56.833)
(56.833)
-
50% worse
5,3384
34.491
3,6064
(59.736)
6,0809
34.726
4,4367
(57.094)
0,0158
(642.608)
0,0329
(10.969)
(127.799)
(127.799)
-
Notional
value - USD
(thousand)
Weighted
average rate at
maturity (*)
Notional
value - EUR
(thousand)
Weighted
average rate at
maturity
(*)
Adjustment
JPY/BRL
in R$
exchange rate for
thousand
settlement of
operations
The selling rates published on March 31, 2016 by the Brazilian Central Bank for USD, EUR and JPY were used.
63
Notional
value - JPY
(thousand)
Weighted
average rate at
maturity (*)
Total effect of
Net effect on
adjustments
profit or loss on equity - R$
R$ thousand
thousand
100,00%
0,00%
All the instruments are traded with top-tier banks on an organized over-the-counter market, duly
registered with the Clearing House for the Custody and Financial Settlement of Securities, as
presented below:
Weighted average forward rate
- value for settlement
Foreign currency
Short position
EUR
Short position
USD
Long position
JPY
4,40467
3,73907
0,03313
Weighted average forward rate
- value for settlement
Foreign currency
Short position
EUR
Short position
USD
Long position
JPY
4,40467
3,73907
0,03313
Notional value - thousand
Parent company
Consolidated
03/31/2016
03/31/2015
03/31/2016
03/31/2015
40.948
46.550
40.948
46.550
52.953
93.873
51.065
92.283
(736.231)
(964.162)
(736.231)
(964.162)
Fair market value - R$ thousand
Parent company
03/31/2016
03/31/2015
(770)
(6.855)
(3.535)
(41.198)
734
1.930
Consolidated
03/31/2016
03/31/2015
(770)
(6.855)
(2.830)
(39.722)
734
1.930
Counterparties: Banco ABC Brasil; Bradesco; Brasil; Deutsche Bank; HSBC; Itaú BBA; Mizuho;
BTGPactual; Santander; Votorantim.
b.5) Market risk, fluctuations in prices of inputs (commodities).
The table below presents the outstanding position at March 31, 2016 and March 31, 2015:
Weighted
average price on
maturity
Long position
Commodities
Nickel
8.704
Copper
4.948
Aluminum
1.531
TOTAL
Weighted
average price on
maturity
Long position
Commodities
Nickel
Copper
Aluminum
TOTAL
8.704
4.948
1.531
Notional value - metric tons
Parent company
03/31/2016
03/31/2015
31
358
216
605
50
222
268
540
Consolidated
03/31/2016
03/31/2015
31
358
216
605
50
222
268
540
Notional value (fair market value)
Parent company
03/31/2016
03/31/2015
(236)
(48)
(82)
(366)
(521)
(254)
(132)
(907)
64
Consolidated
03/31/2016
03/31/2015
(236)
(48)
(82)
(366)
(521)
(254)
(132)
(907)
- Sensitivity analysis table (swap portfolio – commodities)
For the purposes of carrying out the sensitivity analysis of market risks, the Company analyzes
together long and short positions of the prices of commodities (nickel, copper and aluminum).
For the sensitivity analysis of commodity transactions, management adopted as a probable
scenario the amounts recognized in its books, determined by projected prices disclosed by the
LME and exchange rates published by the Brazilian Central Bank at March 31, 2016. As a
reference, the depreciation and appreciation of the prices used for accounting records were
considered for the other scenarios. The scenarios were estimated with appreciation and
depreciation of 25% and 50%, respectively, of prices in the probable scenario.
The methodology adopted for calculating the balances presented in the table below consisted of
replacing the closing exchange rate and commodity prices at March 31, 2016 used for the
purposes of accounting records with the stressed rates and prices calculated in accordance with
the following scenarios.
Sensitivity analysis on results of operations of purchase of commodity swap contracts - Parent company and Consolidated
Volume in
metric tons
Settlement price on
maturity (USD/metric
ton)
Weighted average
price on maturity
(USD/metric ton)
Nickel
50% better
25% better
Balance sheet date
25% worse
50% worse
31
31
31
31
31
12.420
10.350
8.280
6.210
4.140
8.704
8.704
8.704
8.704
8.704
410
182
(47)
(275)
(504)
(410)
(182)
47
275
504
Copper
50% better
25% better
Balance sheet date
25% worse
50% worse
222
222
358
222
222
7.283
6.069
4.856
3.642
2.428
4.948
4.948
4.948
4.948
4.948
2.976
1.429
(117)
(1.664)
(3.210)
(2.976)
(1.429)
117
1.664
3.210
Aluminum
50% better
25% better
Balance sheet date
25% worse
50% worse
268
268
216
268
268
2.237
1.864
1.492
1.119
746
1.531
1.531
1.531
1.531
1.531
543
257
(30)
(317)
(603)
(543)
(257)
30
317
603
Commodity
Total
adjustment
BRL
Total effect on
purchases of
commodities BRL
The selling rates of the USD published on March 31, 2016 by the Brazilian Central Bank and
the metal prices published on the same date by the LME were used.
65
The results from foreign exchange and commodity derivative financial instruments affected the
Company's and its subsidiaries' information as presented below:
03/31/2016
Parent
company
Results of derivatives (exports/imports/loan)
Provisions
- Operations on accounts receivable and payable
- Operations on loan
- Reversal of provision
Cash effect
- Operations on accounts receivable and payable
(BS)
Note 29
Total derivatice operations - net finance result
03/31/2015
Consolidated
Parent
company
Consolidated
6.543
2.776
6.650
(2.572)
2.757
(6.826)
407
(4.931)
468
6.715
16.034
6.885
13.720
(15.970)
(22.389)
(18.406)
(22.869)
16.034
13.720
(22.389)
(22.869)
(11.892)
(11.892)
(11.892)
(11.892)
(10.740)
(10.740)
(10.740)
(10.740)
1.783
1.783
3.463
3.463
(1.332)
(1.332)
(1.332)
(1.332)
(10.109)
(8.429)
(12.072)
(12.072)
Gross result
Gross sales
- Settlements with cash effect
Cost of sales
- Settlements with cash effect
Total derivatice operations - gross result
Parent
company
Equity
Provisions
- Operations on sales to be made
- Operations on commodities
(BS)
(BS)
Consolidated
Parent
company
Consolidated
(9.964)
(367)
3.513
(9.415)
(367)
3.326
(36.026)
(906)
12.249
(35.548)
(906)
12.086
(6.818)
(6.456)
(24.683)
(24.368)
Balance sheet assets
Balance sheet liabilities
Balance sheet, net
18.842
(22.629)
(3.787)
20.099
(22.754)
(2.655)
3.586
(47.344)
(43.758)
6.235
(47.620)
(41.385)
Exchange variations (gains and losses)
Results of derivatives (exports/imports/loan)
Gross sales
Cost of sales
(14.299)
16.034
(11.892)
1.783
(7.670)
13.720
(11.892)
3.463
26.625
(22.389)
(10.740)
(1.332)
29.061
(22.869)
(10.740)
(1.332)
(8.374)
(2.379)
(7.836)
(5.880)
Total derivative operations - Equity
Provision for unrealized losses and gains on derivatives
(BS) - Sum of the net balance sheet
Effects of foreign exchange variation and financial instrument on profit and loss
Guarantees
The Company had no guarantee deposits relating to these derivative instruments for the periods
presented above (March 31, 2016 and March 31 ,2015).
66
32
Employee benefits
The employee benefits offered by the Company are mainly granted on a monthly basis and recognized
in the accounting records accordingly. There are no post-employment benefits, pension funds or other
benefits that require specific accounting treatment.
For the year ended March 31, 2016, the Company granted profit-sharing to its employees, based on a
union agreement, in the amount of R$ 13,285 (R$ 15,597 in the first quarter of 2015) in the parent
company and R$ 13,954 (R$ 17,199 in the first quarter of 2015) in the consolidated accounts. The
criteria established for the payment of profit-sharing follow the rules defined in the collective
bargaining agreement, which establish certain goals to be attained, such as: i) meeting production
goals for a predetermined number of employees; ii) maintaining the level of absenteeism at or below a
previously established annual average rate of hours of absence in relation to the standard hours
worked; and iii) maintaining the annual level of waste at or below the previously set average annual
rate in relation to the number of parts produced.
Supplementary pension plan - defined contribution
In September 2006, the Group joined a free benefit-generating private pension plan, managed by
Bradesco Vida e Previdência S.A. (the Manager), offering all its employees the option to participate.
The contributions are defined according to salary bracket. Annually, the Manager conducts an
actuarial valuation of the plan in order to determine possible adjustments to the contribution levels.
The Group contributed to the private pension plan an amount of R$ 1,132 at March 31, 2016
(R$ 1,272 at March 31, 2015).
33
Insurance (not audited)
The Group has a policy of taking out insurance coverage for assets subject to risks at amounts
considered sufficient to cover losses, considering the nature of its activity. The risk assumptions
adopted, given their nature, have not been made part of the scope of an audit and, accordingly, were
not examined by our independent auditors.
For 2016, the insurance coverage against operating risks totaled R$ 1,100,000 for material damages
and loss of profits combined.
*
*
67
*
Representation by officers on the parent company and consolidated interim financial statements
CNPJ No. 60.476.884/0001-87
Publicly-held company
REPRESENTATION
Messrs. Claus Hoppen and Caio Gonçalves de Moraes, executive officers of MAHLE Metal Leve
S.A., with its head office at Avenida Ernst MAHLE, 2000, Mombaça, in the city of Mogi Guaçu, State
of São Paulo, in conformity with item VI of Article 25 of CVM Instruction 480, of December 7, 2009,
do hereby declare that:
They have reviewed and discussed, and agree with, the parent company and consolidated interim
financial statements of MAHLE Metal Leve S.A. for the quarter ended March 31, 2016, and thus
authorize their completion.
Mogi Guaçu, May 10, 2016
_______________________
Claus Hoppen
CEO
_______________________
Caio Gonçalves de Moraes
68
Representation by officers on the independent auditor's report on the interim financial
statements
CNPJ No. 60.476.884/0001-87
Publicly-held company
REPRESENTATION
Messrs. Claus Hoppen and Caio Gonçalves de Moraes, executive officers of MAHLE Metal Leve
S.A., with its head office at Avenida Ernst MAHLE, 2000, Mombaça, in the city of Mogi Guaçu, State
of São Paulo, in conformity with item V of Article 25 of CVM Instruction 480, of December 7, 2009,
do hereby declare that:
They have reviewed and discussed, and agree with, the opinion expressed by PricewaterhouseCoopers
Auditores Independentes on the parent company and consolidated interim financial statements of
MAHLE Metal Leve S.A. for the quarter ended March 31, 2016.
Mogi Guaçu, May 10, 2016
_______________________
Claus Hoppen
CEO
_______________________
Caio Gonçalves de Moraes
Executive Officer
69

ITR - MAHLE Metal Leve - Relações com Investidores

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