MEMORIA Anejo 4: Explotación
ANEJO 5: ESTUDIO ECONÓMICO
30-06-2014 31-12-2013
Properties held by Fundo Imobiliário Novimovest 420,609 449,758
Hotel 18,191 18,191
--- ---
438,800 467,949
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During the year 2013, following the subscription of several participating units, the Bank started to consolidate by the full integration method the Fundo Imobiliário Novimovest, whose main assets are properties for rental.
On June 30, 2014 and December 31, 2013, the properties held by Fundo Imobiliário Novimovest have the following characteristics:
30-06-2014 31-12-2013 Land Urbanized 38,651 47,809 Non-urbanized 9,378 9,457 Finished constructions Rented 287,292 307,213 Not rented 85,288 85.279 --- --- 420,609 449,758 ====== ======
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On the other hand, during the first half of 2014 and during the year 2013, the properties held by Fundo Imobiliário Novimovest generated, amongst others, the following revenues and charges:
30-06-2014 31-12-2013
Rents 10,154 22,744
Taxes ( 2,022 ) ( 4,762 )
Condominium expenses ( 494 ) ( 1,369 )
Maintenance and repair expenses ( 609 ) ( 945 )
Insurances ( 141 ) ( 316 )
--- ---
6,888 15,352
==== =====
Finally, during the first half of 2013, the Bank received as settlement for a non performing loan a hotel valuated at that date in tEuros 18,660. Simultaneously, the Bank celebrated a lease contract for that property for a period of 1 year automatically renewable. On December 31, 2013, the Bank updated the fair value of that property.
The changes occurred under the caption "Investment properties" during the first half of 2014 and during the year 2013 were as follows:
30-06-2014
Balances on Changes in the Balances on
December 31, consolidation Fair value June 30,
2013 Increases perimeter valuation Sales 2014
Properties held by Fundo Imobiliário Novimovest 449,758 - - (20,338) (8,811) 420,609
Hotel 18,191 - - - - 18,191
467,949 - - (20,338) (8,811) 438,800
31-12-2013
Balances on Changes in the Balances on
January 1, consolidation Fair value December 31,
2013 Increases perimeter valuation Sales 2013
Properties held by Fundo Imobiliário Novimovest - - 523,886 (25,978) (48,150) 449,758
Hotel - 18,660 - (469) - 18,191
- 18,660 523,886 (26,447) (48,150) 467,949
The impact of the fair value valuation of the investment properties is recorded in the income statement caption "Other operating income - Unrealized gains/losses on investment properties" (Note 39). Investment properties held by the Bank are valued mostly on an annual basis, using specialized independent entities, in accordance with the valuation methodologies described in Note 12.
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On June 30, 2014 and December 31, 2013, the determination of the fair value of the investment properties in accordance with the levels defined in IFRS 13 was as follows:
Level 1 Level 2 Level 3 Total
Investment properties - - 438,800 438,800
30-06-2014 Valuation techniques
Level 1 Level 2 Level 3 Total
Investment properties - - 467,949 467,949
31-12-2013 Valuation techniques
In compliance with the requirements of IFRS 13, for the investment properties with higher value in the Bank's portfolio on June 30, 2014 and December 31, 2013, a summary of their main characteristics, the valuation techniques adopted and the relevant inputs used in the estimation of their fair value are presented below:
Property description Status Amount Valuation method Relevant inputs Hotel Delfim - Alvor
Hotel in Portimão Rented 33,284 Income method / Cost method Rent value by square meter Yield
Stª Cruz do Bispo - plots of land 1,2 and 3
Land in Matosinhos Rented 22,110 Comparative market method / Residual value method Yield Galerias Saldanha Residence
Shoping center in Lisbon Rented 29,347 Income method / Comparative market method Rent value by square meter Yield
Hotel in Cascais Rented 18,191 Income method / Depreciated replacement cost method Yield Vacancy rate Warehouse in Perafita
Warehouse in Matosinhos Rented 16,855 Income method / Comparative market method Yield
Rent value by square meter Antero de Quental Avenue, 9
Offices and shops in Ponta Delgada Rented 12,441 Income method / Comparative market method Yield
Rent value by square meter Estrada da Outurela, 119, Carnaxide
Offices in Oeiras Rented 12,021 Income method / Cost method Yield
Rent value by square meter Golf courses "Vila Sol" - G1 and G2
Golf courses in Loulé Rented 11,738 Income method / Cost method Yield
Rent value by square meter Logistics parks SPC - warehouses 1 and 4
Warehouses in Vila Franca de Xira Rented 10,211 Income method / Cost method Yield
Rent value by square meter Alfena - Land in Valongo
Land in Valongo Non - urban 8,224 Comparative market method / Cost method/ Residual value method area
174,422
Land price and construction and sale costs by square meter
Land price and construction and sale costs by square meter
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Property description Status Amount Valuation method Relevant inputs Hotel Delfim - Alvor
Hotel in Portimão Rented 33,284 Income method / Cost method Rent value by square meter Yield
Stª Cruz do Bispo - plots of land 1,2 and 3
Land in Matosinhos Rented 31,796 Comparative market method / Residual value method Yield Galerias Saldanha Residence
Shoping center in Lisbon Rented 31,006 Income method / Comparative market method Rent value by square meter Yield
Hotel in Cascais Rented 18,191 Income method / Depreciated replacement cost method Yield Vacancy rate Warehouse in Perafita
Warehouse in Matosinhos Rented 17,315 Income method / Comparative market method Yield
Rent value by square meter Antero de Quental Avenue, 9
Offices and shops in Ponta Delgada Rented 12,441 Income method / Comparative market method Yield
Rent value by square meter Estrada da Outurela, 119, Carnaxide
Offices in Oeiras Rented 12,399 Income method / Cost method Yield
Rent value by square meter Golf courses "Vila Sol" - G1 and G2
Golf courses in Loulé Rented 11,799 Income method / Cost method Yield
Rent value by square meter Logistics parks SPC - warehouses 1 and 4
Warehouses in Vila Franca de Xira Rented 10,823 Income method / Cost method Yield
Rent value by square meter Alfena - Land in Valongo
Land in Valongo Non - urban 8,224 Comparative market method / Cost method/ Residual value method area
187,278
Land price and construction and sale costs by square meter
Land price and construction and sale costs by square meter
If an increase in the rent value per square meter occurs or an increase in the vacancy rate or a decrease in the yield occurs, the fair value of the investment properties will increase. On the other hand, if an increase in the construction or sale costs occurs, the fair value of the investment properties will decrease.
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Changes in these captions for the semesters ended on June 30, 2014 and 2013, are as follows:
Transfers Fro m/to assets held
31-12-2013 fo r sale (No te 12) A mo rtizatio n
Gro ss A ccumulated Gro ss A ccumulated Gro ss A ccumulated Gro ss A ccumulated o f the Reversal o f Gro ss A ccumulated Net amo unt depreciatio n Impairment A cquisitio ns amo unt depreciatio n amo unt depreciatio n amo unt depreciatio n perio d Impairment amo unt depreciatio n Impairment amo unt
(No te 22) (No te 22) (No te 22)
Tangible assets P ro perty
. P ro perty fo r o wn use 404,845 132,012 3,843 311 456 85 - - (6,148) (2,009) 3,717 - 398,552 133,635 3,843 261,074 . Leaseho ld expenditure 129,254 110,979 - 187 4,537 4,537 5 - - - 2,797 - 124,909 109,239 - 15,670
. Other pro perty 312 6 20 - - - 1 - 312 7 20 285
Tangible assets in pro gress
. P ro perty fo r o wn use 537 - - (30) - - - 507 - - 507
. Leaseho ld expenditure 5 - - - (5) - - - -
534,953 242,997 3,863 468 4,993 4,622 - - (6,148) (2,009) 6,515 - 524,280 242,881 3,863 277,536 Equipment
. Furniture and fixtures 22,257 19,528 - 133 100 100 - - - - 534 - 22,290 19,962 - 2,328
. M achinery and to o ls 3,745 3,652 - 8 9 9 - - - - 18 - 3,744 3,661 - 83 . Co mputer hardware 125,098 115,542 - 1,912 1,959 1,959 - - - - 2,032 - 125,051 115,615 - 9,436 . Indo o r facilities 91,840 83,017 - 1,442 395 392 - - (22) (12) 1,044 - 92,865 83,657 - 9,208 . Vehicles 19,135 13,131 - 1,060 1,163 1,135 - - - - 921 - 19,032 12,917 - 6,115 . Security equipment 27,016 26,506 - 34 454 454 - - - - 136 - 26,596 26,188 - 408 . Other equipment 5,730 4,414 - 94 211 194 2 - - - 277 - 5,615 4,497 - 1,118
. Tangible assets in pro gress 2 - - - (2) - - - -
294,823 265,790 - 4,683 4,291 4,243 - - (22) (12) 4,962 - 295,193 266,497 - 28,696 Other tangible assets
. Leased equipment 281 281 - - - 281 - - 1,536 . Wo rk o f A rt 1,536 - - - 1,536 281 - 1,536 1,817 281 - - - 1,817 281 - 3,072 831,593 509,068 3,863 5,151 9,284 8,865 - - (6,170) (2,021) 11,477 - 821,290 509,659 3,863 309,304 Intangible assets So ftware purchased 361,034 308,566 - 9,455 63 61 - - - - 28,253 - 370,426 336,758 - 33,668 Go o dwill - - - 117 - - - 117 - - 117 Other 3,464 3,464 - - - 3,464 3,464 - - 364,498 312,030 - 9,572 63 61 - - - - 28,253 - 374,007 340,222 - 33,785 30-06-2014 30-06-2014 Write-o ffs and sales Transfers
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Fro m/to assets held
31-12-2012 fo r sale (No te 12) A mo rtizatio n Exchange diferences
Gro ss A ccumulated Gro ss A ccumulated Gro ss A ccumulated o f the Reversal o f Gro ss A ccumulated Gro ss A ccumulated Net amo unt depreciatio n Impairment A cquisitio ns amo unt depreciatio n amo unt depreciatio n perio d Impairment Impairment amo unt depreciatio n amo unt depreciatio n Impairment amo unt
(No te 22) (No te 22) (No te 22) (No te 22)
Tangible assets P ro perty
. P ro perty fo r o wn use 408,502 126,731 3,875 720 346 346 (3,264) (396) 3,738 15 (47) - - 405,612 129,727 3,843 272,042 . Leaseho ld expenditure 134,256 110,170 - 528 1,814 1,814 - - 3,628 - - 2 2 132,972 111,986 - 20,986
. Other pro perty 306 4 20 - - - 1 - - - - 306 5 20 281
Tangible assets in pro gress
. P ro perty fo r o wn use 131 - - 293 - - - 424 - - 424
. Leaseho ld expenditure 1 - - - 1 - - 1
543,196 236,905 3,895 1,541 2,160 2,160 (3,264) (396) 7,367 15 (47) 2 2 539,315 241,718 3,863 293,734 Equipment
. Furniture and fixtures 23,219 19,287 - 25 165 165 - - 690 - - - - 23,079 19,812 - 3,267
. M achinery and to o ls 3,966 3,854 - 4 32 32 - - 23 - - - - 3,938 3,845 - 93
. Co mputer hardware 124,725 113,064 - 410 463 440 - - 2,436 - - - - 124,672 115,060 - 9,612 . Indo o r facilities 92,346 84,120 - 1,338 2,287 2,287 (3) (1) 1,285 - - - - 91,394 83,117 - 8,277
. Security equipment 17,708 11,970 - 489 581 502 - - 1,582 - - - - 17,616 13,050 - 4,566
. Other equipment 27,593 26,904 - 40 233 233 - - 179 - - - - 27,400 26,850 - 550
. Tangible assets in pro gress 5,801 4,008 - 72 68 68 - - 318 - - - - 5,805 4,258 - 1,547
295,358 263,207 - 2,378 3,829 3,727 (3) (1) 6,513 - - - - 293,904 265,992 - 27,912 Other tangible assets
. Leased equipment 281 281 - - - 281 281 - - . Wo rk o f A rt 1,537 - - - 1,537 - - 1,537 1,818 281 - - - 1,818 281 - 1,537 840,372 500,393 3,895 3,919 5,989 5,887 (3,267) (397) 13,880 15 (47) 2 2 835,037 507,991 3,863 323,183 Intangible assets So ftware purchased 342,991 277,149 - 10,583 754 754 - - 16,744 - - - - 352,820 293,139 - 59,681 Go o dwill 3,585 3,585 - - - 3,585 3,585 - - Other 29 29 - - - 29 29 - - 346,605 280,763 - 10,583 754 754 - - 16,744 - - - - 356,434 296,753 - 59,681 30-06-2013 Write-o ffs and sales
The caption “Software purchased” on June 30, 2014 and 2013 includes software acquired from Santander Tecnologia y Operaciones A.E.I.E., a European economic interest group owned by Santander Group, amounting to, net of depreciation, tEuros 32,092 and tEuros 57,929, respectively. During the six month period ended on June 30, 2014, the Bank revised the expected useful life of its Parthenon IT platform from 5 to 3 years. As a result of that review, the amortizations of the period of the caption "Software purchased" increased tEuros 11,200.
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