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CTT-Correios de Portugal

Annual Report Apr 13, 2010

1911_10-k_2010-04-13_aa8acffd-0b4a-4b70-a4ff-d83517aa953f.pdf

Annual Report

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ANNUAL REPORT AND ACCOUNTS 2009 FINANCIAL YEAR

(Translated from the Portuguese Original)

CIMPOR - CIMENTOS DE PORTUGAL, SGPS, S.A. Public Company – Head Office: Rua Alexandre Herculano, 35 - 1250-009 LISBON – Share Capital: 672,000,000 Euros Tax and Lisbon Companies Registry Registration number: 500 722 900

PROFILE OF THE CIMPOR GROUP

CIMPOR is an international cement Group - ranked among the world's top ten - with head office and decision centre in Portugal. At the end of 2009 the Group was operating in thirteen countries spread over four continents, managing an installed cement production capacity of 33.5 million tonnes/year (consuming its own clinker).

The Group's core business is the production and sale of cement. It is the domestic market leader in Portugal, Cape Verde and Mozambique. Concrete, aggregates and mortars are manufactured and sold through the vertically integrated businesses. These products generated consolidated sales of EUR 2.085 billion in 2009.

STRATEGIC VISION

The CIMPOR Group, as a pioneer in the concept of sustainable development and one of the world's main players in the movement towards consolidation of the sector, aims to continue on the path of growth and internationalization, remaining loyal to that concept whilst maintaining its independence from other large cement producers and keeping its decision centre in Portugal.

VALUES

  • Shareholders -- To defend their legitimate interests through the intrinsic appreciation of the capital invested in the company and adequate return on the same.
  • Customers -- Focus on full satisfaction of customers' expectations, in accordance with the ethical principles of integrity and compliance with applicable standards.
  • Personnel -- Fair remuneration for their work, with career advancement opportunities and fair treatment by fostering an active policy of compliance with hygiene, health and safety in the workplace standards.
  • Organisation -- Constantly striving for excellence by setting ambitious goals and selecting leaders at all levels of the organization able to shoulder responsibility and meet these goals.
  • Quality -- Compliance with national and international standards, with particular reference to product certification and the smooth running of the Quality Management System.
  • Environment -- Harmonious integration into the social and cultural surroundings, based on an active policy of environmental protection and cooperation with local communities.
  • Innovation -- Pursuit of a policy of innovation and the development of technologies, products and services in collaboration with the academic and scientific community, customers and suppliers.
  • Local Communities Implement a policy of social support considering the shortfall of infrastructures at the local level and supporting social and cultural activities.
  • Society in General Pursue communication and corporate social responsibility policies that are wholly transparent in regard to the Group's undertakings and which demonstrate its proactive adoption of civic responsibilities.

STRATEGY

  • Consolidate current positions through organisational growth (increased efficiency and capacity) and greater penetration in markets where the Group already operates (through expansion into business areas related to the cement sector).
  • Make new acquisitions within the Group's financial limits, seeking to ensure balance between operations focused on emerging markets and the Group's presence in consolidated and mature markets, where the lower potential for growth is offset by lower risk.
  • Optimize operations by taking advantage of synergies, cutting costs (particularly energy costs), increasing staff productivity and investing in R&D.
  • Develop trading between the Group's companies so as to balance demand peaks in certain markets with excess supply in others.
Consolidated Data Unit 2009 2008 Change 2007
Installed Capacity (Cement) (1) $10$ ton 33 540 30 985 8.2% 28 360
Group Sales
Cement and Clinker $\ensuremath{\mathsf{3}}$
10 ton
27 402 26 807 2.2% 24 547
Concrete $10m^3$ 7 2 6 4 8567 $-15.2%$ 8664
Aggregates 10 ton 13891 16 109 $-13.8%$ 15 196
Mortar $\overline{3}$
10 ton
543 562 $-3.5%$ 543
Turnover $106$ euros 2085.5 2 088.9 $-0.2%$ 1966.1
Payroll Expenses $106$ euros 249.6 224.9 11.0% 207.1
Operating Cash Flow (EBITDA) $10^{6}$ euros 605.9 586.3 3.3% 607.0
Operating Income (EBIT) $10^{6}$ euros 376.9 392.6 $-4.0%$ 438.1
Net Financial Expenses $10^{6}$ euros $-63.1$ $-134.4$ S.S. $-48.0$
Current Income $10^{6}$ euros 313.8 258.3 21.5% 390.1
Net Income after Minority Interests $106$ euros 237.0 219.4 8.0% 304.1
Total Assets $106$ euros 4927.4 4 6 1 5 . 3 6.8% 4834.0
Shareholders' Equity $106$ euros 1830.5 1505.1 21.6% 1796.4
Minority Interests $106$ euros 92.5 110.7 $-16.5%$ 102.9
Net Financial Debt (2) $106$ euros 1698.7 1862.6 $-8.8%$ 1 3 5 9 . 3
Capital Employed $106$ euros 3718.6 3 3 8 2.5 9.9% 3 2 1 4.6
Capital Invested $10^{6}$ euros 3 8 2 3.4 3703.2 3.2% 3 4 9 8.4
Employees (31 Dec) Unit 8693 8 3 6 9 3.9% 7608
Turnover / Employee $103$ euros 239.1 256.5 $-6.8%$ 279.5
Value Added / Employee $10^3$ euros 98.1 99.6 $-1.5%$ 115.7
Net Investment
Goodwill (Subsidiaries) $106$ euros 0.2 167.2 $-99.9%$ 335.5
Tangible Fixed Assets $10^{6}$ euros 224.3 423.1 $-47.0%$ 496.2
Operating CF / Turnover (EBITDA Margin) 29.1% 28.1% 30.9%
Operating Income / Turnover (EBIT Margin) 18.1% 18.8% 22.3%
Return on Equity (ROE)(3) 15.2% 14.9% 16.6%
Return on Capital Employed (ROCE) (3) (4) 9.1% 9.1% 11.7%
Net Financial Debt / Capital Invested 44.4% 50.3% 38.9%
Market Capitalisation (31 Dec) $106$ euros 4 3 2 0 2 3 3 9 84.7% 4 0 3 2
Net Earnings per Share (EPS) (3) euros 0.388 0.368 5.2% 0.415
Price (31 Dec) / Price Earnings per Share (PER) 16.6 9.4 14.5

Corporate Highlights

  • The CIMPOR Cimentos de Portugal, SGPS, S.A. Annual General Meeting was held on 13 May 2009, which besides approving all the proposals submitted by the Board of Directors, elected the new governing bodies for the 2009-2012 four year term of office.
  • Announcement in December 2009 by Companhia Siderúrgica Nacional (CSN) of a takeover bid for all the shares representing the share capital of CIMPOR.
  • Standard & Poor's (S&P) revised CIMPOR's long-term credit from "BBB" to "BBB-", initially with a negative outlook and then stable outlook from the end of September (placed on Credit Watch, with negative implications, following the preliminary announcement of the takeover bid by CSN).
  • Establishment, through Cimpor Financial Operations, B.V., of a Euro Medium Term Notes (EMTN) programme in the amount of EUR 2.5 billion.

Portugal

  • Increase of Cimpor Portugal, SGPS, S.A.'s stake in Jomatel Empresa de Materiais de Construção, S.A. to 100% of the share capital.
  • Cimpor Portugal, SGPS, S.A. signs a purchase and sale contract to sell a 1.5% shareholding in the share capital of Betão Liz, S.A..
  • Increase of Agrepor Agregados Extracção de Inertes, S.A.'s stake in Sogral Sociedade de Granitos, S.A. to 100% of the share capital.
  • Liquidation and winding up of Scanang, SGPS, S.A. and Vermofeira Extracção e Comércio de Areias, Lda..
  • Merger, by incorporation, of M.C.D. Materiais de Construção, Dragados e Betão Pronto, S.A., in Betão Liz, S.A..
  • Reduction of the share capital of Cimpor Internacional, SGPS, S.A. from EUR 87.5 million to EUR 76.475 million, and of Mossines – Cimentos de Sines, S.A. from EUR 11 million to EUR 5 million.
  • Reduction of the share capital of Cecime Cimentos, S.A. from EUR 6.3 million to EUR 100,000 and subsequent increase of share capital from EUR 100,000 to EUR 115,000, fully subscribed and paid up by Kandmad, SGPS, S.A..

  • Cimpor Indústria de Cimentos, S.A. obtains a licence to recover waste at the Loulé manufacturing plant.

  • The Environmental Management System of Ciarga Argamassas Secas, S.A. obtains certification according to the ISO 14001:2004 standard.

Spain

  • Subscription by Corporación Noroeste, S.A., in the amount of EUR 865,000, of part of the share capital increase in Cementos Antequera, S.A., raising its shareholding in that company to around 23.1%.
  • Acquisition by Cementos Cosmos, S.A. of a 60% shareholding in the capital of Sogesso Sociedade de Gessos de Soure, S.A..
  • Acquisition by Servicios y Materiales para la Construcción, S.A. of a 45% shareholding in the capital of Agueiro, S.A..
  • Acquisition by Corporación Noroeste, S.A. of a 55% shareholding in the capital of Betobomba, S.L..
  • Increase by Corporación Noroeste, S.A. of its shareholding in Occidental de Áridos, S.L. to 100% and subsequent merger of Occidental de Áridos, S.L. with Áridos Cosmos, S.L..
  • Merger of the companies Hormigones Hercules, S.L., Firmes y Hormigones Sani, S.L. and Occidental de Hormigones, S.L., by the incorporation of the first two companies into the latter.

Morocco

  • Operational start-up of a new cement grinding unit with a production capacity of 50 ton/hour.
  • Renewal of certification of the Environmental and Quality Management Systems of Asment de Temara, S.A. according to the ISO 9001:2000 and ISO 14001:2004 standards, respectively.
  • Start-up of a new concrete plant in Kenitra.

Tunisia

  • Founding of the Granulats Jbel Oust company for the production and sale of aggregates and the Béton Jbel Oust company for the production and sale of ready mix concrete.
  • Reduction of the share capital of Société Ciments de Jbel Oust from TND 84,069,500 to TND 75,214,500 through the amortization of 88,450 shares held by Cimpor Inversiones, S.A. and the subsequent share capital increase to TND 84.299.500 by incorporation of the special investment reserve.
  • Renewal of the integrated certification of the Environmental Management and Occupational Health and Safety Systems, according to the ISO 14001:2004 and OHSAS 18001:2007 standards.

Egypt

• Award of the contract to install a new fabric filter on one of the kilns of Amreyah Cement Company, S.A.E..

Turkey

  • Start up of a new 2,500 ton/day clinker production line at Hasanoğlan (Ankara).
  • Renewal of the environmental licences by all plants and respective quarries.
  • Award of licence to burn alternative fuels at the Yozgat plant.
  • Operational start-up of a new quarry at Lalahan (Ankara).

Brazil

  • Acquisition of a new cement grinding unit with a production capacity of 120 ton/hour, for the Cezarina plant.
  • Start of business activity in the aggregates segment.

  • Renewal of ISO 14001:2004 Environmental Management certification and OHSAS 18001:2007 Occupational Health and Safety certification by the São Miguel dos Campos, Candiota, Nova Santa Rita, João Pessoa, Cajati and Brumado plants and attainment of the same certifications by the Cezarina and Campo Formoso plants and also by the offices in Recife and São Paulo.

  • Renewal of Quality Management certification in all the above-stated manufacturing plants and offices as well as at the 17 concrete manufacturing plants that are already certified, with migration to the ISO 9001:2008 standard.

Peru

  • Sale of the El Callao terminal by Cementos Otorongo, S.A.C., as well as all the shares representing the entire share capital of Agregados Comercializados, S.A.C..
  • Reduction of the share capital of Cementos Otorongo, S.A.C., to cover losses and through the amortisation of all the shares held by non-CIMPOR Group shareholders.
  • Continuation with the preparation of the project to construct an integrated clinker and cement manufacturing plant (650,000 ton/year) in the Arequipa region, including the attainment of the necessary licences.

Ecuador

  • Cimpor del Equador, S.A. signs a Memorandum of Understanding with the Government of the Republic of Ecuador, which establishes the conditions for a takeover bid for the entire share capital of the Cemento Chimborazo, C.A. company, and the commitment by Cimpor del Equador to build a new manufacturing plant, once certain prerequisites have been met.
  • The launch of the above-stated takeover bid and its failure, and consequent cessation of the commitments made under the referred Memorandum of Understanding.

Mozambique

• Conclusion of the installation of a new fabric filter on the clinker cooler at the Matola plant and operational start-up of a new cement grinding unit at the same plant (500 thousand ton per day).

• Approval by the Ministry of Planning and Development of the project to construct a clinker production line with a capacity of 1,500 ton/day, including a new grinding and bagging facilities, to be contracted at the Dondo plant (Beira), at a first stage.

South Africa

  • Conclusion of the construction of a new clinker silo at the Simuma plant and the operational start-up of a new blender and a fly ash silo at the Newcastle plant.
  • Operational start-up of a new concrete plant in the Phoenix region.

China

  • Cimpor Macau Investment Company Limited increases is shareholding in Cimpor Chengtong Cement Corporation, Ltd (CCCC) to 100% and subsequently changes the legal name to Cimpor Cement Corporation, Ltd. (CCC).
  • Operational start-up of the new grinding unit at Huaian, with a cement production capacity of 1.2 million ton/year.
  • Start up of the installation of a system to generate electricity by the recovery of heat released during the clinker manufacturing process, at the Cimpor (Shandong) Cement Co., Ltd. plant.
  • Increase of the share capital of Cimpor (Zaozhuang) Cement Co., Ltd. to CNY 220 million.

India

• Issue by Shree Digvijay Cement Co. Ltd. of convertible preferred shares in the amount of INR 870 million, entirely subscribed by Cimpor Inversiones S.A..

Cape Verde

  • Increase of Cimpor Cabo Verde, S.A. stake in the share capital of Cabo Verde Betões e Inertes, S.A. to 100%.
  • Liquidation of the Nordicave Trading Industrial, Lda. company.

Governing Bodies

Board of Directors

Chairman Ricardo Manuel Simões Bayão Horta *
Directors Luís Eduardo da Silva Barbosa
Vicente Árias Mosquera
António Sarmento Gomes Mota
José Manuel Baptista Fino
Jorge Humberto Correia Tomé
José Enrique Freire Arteta
Jorge Manuel Tavares Salavessa Moura
Luís Filipe Sequeira Martins *
Manuel Luís Barata de Faria Blanc *
António Carlos Custódio de Morais Varela *
Luís Miguel da Silveira Ribeiro Vaz *
Pedro Manuel Abecassis Empis

* Executive Committee

Audit Board

Chairman
Members
Ricardo José Minotti da Cruz Filipe
Luís Black Freire d'Andrade
J. Bastos, C. Sousa Góis & Associados, SROC, Lda.,
Substitute Member represented by Jaime de Macedo Santos Bastos
João José Lopes da Silva
Statutory Auditor Deloitte & Associados, SROC, S.A., represented by
João Luis Falua Costa da Silva
General Meeting
Chairman
Vice-Chairman
Luís Manuel de Faria Neiva dos Santos
Rodrigo de Melo Neiva dos Santos
Company Secretary
Secretary
Substitute Secretary
Jorge Manuel da Costa Félix Oom
António Henrique Pascoal Machado

Contents

CONSOLIDATED REPORT AND ACCOUNTS FOR 2009




Profile of the CIMPOR Group
Key Financials
Corporate Highlights
Governing Bodies
1
2
4
9
DECLARATION OF CONFORMITY (pursuant to Article 245(1)c) of the Portuguese
Securities' Code)
14
CORPORATE GOVERNANCE REPORT 15
0. Declaration of Compliance
0.1.
Recommendations Adopted and Not Adopted
0.2.
Comply or Explain
0.2.1.Blocking of Shares in the event of Suspension of the General Meeting
0.2.2.
Independence of the Chairman of the Audit Board
0.2.3.
Statement on Remuneration Policy
0.2.4.
Disclosure of Remunerations
0.2.5.
Coordination of the Work of Non-Executive Directors
17
17
19
19
19
20
21
21
I. General Meeting
I.1. General Meeting Board
I.2. Admission to the General Meeting and Exercising Voting Rights
I.3. The Company's Remuneration Policy and Assessment of the Board of Directors
I.4. Corporate Control Measures
22
22
23
24
25
II. Management and Supervisory Bodies
II.1. Governing Bodies
II.1.1. Audit Board and Statutory Auditor
II.1.2. Board of Directors
II.1.2.1. Overview of the Board of Directors
II.1.2.2. Method of Functioning of the Management Body
II.1.3. Governance Model
II.1.4. Committees with Management and Supervisory
26
26
26
28
30
31
34
Powers
II.1.4.1. Executive Committee
II.1.4.2. Corporate Governance, Sustainability and
35
35
Social Responsibility Committee
II.1.4.3. Appointments and Assessment Committee
II.1.4.4. Strategy and Investment Committee
II.2. Organisational Structure
II.2.1. CIMPOR Group
II.2.2. CIMPOR Holding
II.2.3. Shared Services
II.2.4. Cimpor Tec
II.3. Internal Control and Risk Management
36
37
37
40
40
41
43
45
46
II.4. Remuneration 48
II.4.1. Remuneration Committee 48
II.4.2. Remuneration Policy and Disclosure of Remunerations 48
II.5. Policy on the Reporting of Irregularities 51
II.6. Codes of Conduct of the Governing Bodies 52
III. Information 53
III.1. Share Capital and Shareholder Structure 53
III.2. Amendments to the Articles of Association 55
III.3. Stock Market Performance of CIMPOR shares 55
III.4. Dividend Distribution Policy 58
III.5. Stock Award and Stock Option Plans 59
III.5.1. Employee Stock Purchase Plan for
2009
59
III.5.2. Stock Option Award Plans for
Directors and Managers of the Group - 2009 Series 60
III.5.3. Options Granted, Exercised and Extinguished 61
III.6. Business and Transactions between the Company and Members of its Management and
Supervisory Bodies, Shareholders of Qualifying Holdings or Companies with which it
has a Control or Group Relationship 62
III.7. Investor Relations Office 63
III.8. External Auditor 64
Annex I - Members of the Management and Supervisory Bodies 66
Annex II – Remuneration of Members of the Board of Directors 75
REPORT ON THE GROUP'S BUSINESS ACTIVITY 76
1. Macroeconomic and Sectorial Background 77
1.1.
Evolution of the World Economy
77
1.2.
Evolution of the Cement Sector
78
2. Review of the Group's Results 79
2.1.
Summary of the Overall Business
79
2.1.1.
Operating Income
79
2.1.2.
Sales and Turnover
81
2.1.3.
Financial Income and Taxes
83
2.1.4.
Financial Situation
83
2.2.
Portugal
88
2.3.
Spain
89
2.4.
Morocco
90
2.5.
Tunisia
92
2.6.
Egypt
93
2.7.
Turkey
94
2.8.
Brazil
95
2.9.
Mozambique
96
2.10.
South Africa
97
2.11.
China
99
2.12.
India
100
2.13.
Cape Verde
101
3. CIMPOR TEC's Business
102
4. Sustainability and Social Responsibility
4.1. Sustainable Development
4.2. Social Responsibility
103
103
105
5. Human Resources 106
6. Occupational Health and Safety 109
7. Financial and Risk Management Policy
7.1.
Financial Debt Management
7.2.
Risk Management Policy
7.2.1.
Financial Risk Management
7.2.2.
Asset Risk Management
112
112
115
115
116
8. Outlook for 2010
8.1.
Overall
8.2.
CIMPOR Group
117
117
117
9. Subsequent Events 120
CONSOLIDATED FINANCIAL STATEMENTS 122

Consolidated Statements of Comprehensive Income for the Years ended 31 December 2009
and 2008

Consolidated Statement of Financial Position at 31 December 2009 and 2008
123
124

Consolidated Statement of Changes in Shareholders' Equity for the Years ended on 31
December 2009 and on 31 December 2008

Consolidated Cash Flow Statements for the Years ended 31 December 2009 and 2008

Notes to the Consolidated Financial Statements for the Year ended on 31 December 2009
125
126
127
Holders of Qualifying Shareholdings
Shareholdings of Members of Board of Directors and Audit Committee
231
232
Report and Opinion of the Audit Board
Statutory Audit Certificate and Auditor's Report
251
257

259

292 294

INDIVIDUAL REPORT AND ACCOUNTS FOR 2009

I – DIRECTORS' REPORT 261
1.
Summary of the Business
2.
Legal Information
3.
Subsequent Events
4.
Outlook for 2010
5.
Proposed Appropriation of Profits
262
262
263
263
263
II – FINANCIAL STATEMENTS OF THE HOLDING COMPANY 265

Balance Sheets for the Years ended 31 December 2009 and 2008

Statements of Profit and Loss for the Years Ended on 31 December 2009 and 2008

Statements of Changes in Shareholders' Equity for the Years Ended on 31 December 2009
266
267
and 2008

Cash Flows Statements for the Years Ended on 31 December 2009 and 2008

Notes to the Financial Statements as at 31 December 2009
268
269
271

Report and Opinion of the Audit Board Statutory Audit Certificate and Auditor's Report

Declaration of Conformity

(pursuant to Article 245(1)c) of the Portuguese Securities' Code)

As far as we are aware: the information set forth in Article 245(1)c) of the Portuguese Securities' Code was drawn up in conformity with the applicable accounting standards, providing an accurate and appropriate view of the assets and liabilities, the financial situation and the profits of CIMPOR – Cimentos de Portugal, SGPS, S.A. and the companies included in the consolidation perimeter (CIMPOR Group). The directors' report faithfully provides an account of the evolution of the business, the performance and the position of the CIMPOR Group and it contains a description of the main risks and uncertainties its is faced with.

Lisbon, 7 April 2010

The Board Of Directors

Ricardo Manuel Simões Bayão Horta

Luís Eduardo da Silva Barbosa Vicente Árias Mosquera
António Sarmento Gomes Mota José Manuel Baptista Fino
Jorge Humberto Correia Tomé José Enrique Freire Arteta
Jorge Manuel Tavares Salavessa Moura Luís Filipe Sequeira Martins
Manuel Luís Barata de Faria Blanc António Carlos Custódio de Morais Varela
Luís Miguel da Silveira Ribeiro Vaz Pedro Manuel Abecassis Empis

CORPORATE GOVERNANCE REPORT

CIMPOR – Cimentos de Portugal, SGPS, S.A. ("CIMPOR" or "the Company") has, for a long period of time, been committed to dealing appropriately with issues related to the corporate governance of companies issuing shares that are admitted to trading on a regulated market, as well as the periodic disclosure to stakeholders, the wider financial community, the authorities and the market in general of the positions and solutions the Group adopts in this area.

As in previous years, the Board of Directors presents the more significant aspects of Corporate Governance and of the Group in this chapter of its annual report. The publication of this information ensures compliance with the information disclosure duties established by the Portuguese Securities' Code and Regulation no. 1/2007 of the Portuguese Securities' Market Commission (Comissão do Mercado de Valores Mobiliários - CMVM).

The decision to opt for the reporting model attached to Regulation no. 1/2007 of the Portuguese Securities' Market Commission (as has been expressly approved by that supervisory entity) instead of the new model established by CMVM Regulation no. 1/2010, published on 1 February, is exclusively due to the difficulties that would be encountered in reporting, in good time, a set of innovative information that has not previously been covered by the CMVM's Corporate Governance Code.

0. Declaration Of Compliance

CIMPOR has always attached special importance to the adoption of the best organizational models and the most suitable practices and guidelines concerning Corporate Governance. In doing so, it seeks to remain aligned with the main international trends and encourage critical reflection within the company.

CIMPOR, in line with the importance it allocates such matters, in addition to complying with the corporate governance rules set forth in the Portuguese Companies' Code, nowadays maintains a significant degree of compliance with the recommendations envisaged in the CMVM's "Corporate Governance Code" approved in 2007. The Company is already preparing the alterations that are to be made to remove some of the gaps and limitations of its current governance model in relation to the new recommendations established in the latest version of that Code (2010).

0.1. Recommendations Adopted and not Adopted

CIMPOR's compliance with the recommendations established in the CMVM's Corporate Governance Code (2007) can be summarised as follows:

Recommendation Compliance Ref.
I. General Meeting
I.1. General Meeting Board
1. Adequate resources available to the Chairman of the General Meeting Board COMPLIES I.1.
2. Disclosure of the remuneration of the Chairman of the General Meeting
Board
COMPLIES I.1.
I.2. Admission to the General Meeting
1. Period in advance for the deposit or blocking of shares COMPLIES I.2.
2. Blocking shares in the event of suspension of the General Meeting DOES NOT COMPLY 0.2.1.
I.3. Voting the Exercising Voting Rights
1. Absence of statutory restrictions on postal voting COMPLIES I.2.
2. Time limit for receiving voting ballots by mail COMPLIES I.2.
3. "One share one vote" principle COMPLIES I.2.
I.4. Quorum and Resolutions
1. Quorum not exceeding legal limits COMPLIES I.2.
I.5. Minutes and Information on Resolutions Passed
1. Availability on the Company's website COMPLIES I.1.
I.6. Corporate Control Measures
1. Absence of measures to prevent the success of takeover bids COMPLIES I.4.
2. Absence of restrictions on the number of votes N/A I.4.
3. Absence of defensive measures COMPLIES I.4.
II. Management and Supervisory Bodies
II.1. General
1. Structure and Powers
Recommendation Compliance Ref.
1.1. Assessment of the governance model by the Management Body COMPLIES II.1.3.
1.2. Internal control systems to detect risks COMPLIES II.3.
1.3. Internal Regulations COMPLIES II.6.
2. Incompatibilities and Independence
2.1. Number of non-executive directors COMPLIES II.1.2.1.
2.2. Number of independent non-executive directors COMPLIES II.1.2.1.
3. Eligibility and Appointment
3.1. Independence of the Chairman of the Audit Board and powers to PARTIALLY 0.2.2.
exercise the respective duties COMPLIES II.1.1.
4. Irregularities' Reporting Policy
4.1. Adoption of an irregularities' reporting policy COMPLIES II.5.
4.2. Disclosure of general guidelines COMPLIES II.5.
5. Remuneration
5.1. Alignment with the Company's interests COMPLIES II.4.2.
5.2. Statement on remuneration policy DOES NOT COMPLY 0.2.3.
5.3. At least one representative of the Remuneration Committee attends
the Annual General Meeting
COMPLIES II.4.1.
5.4. Stock award and/or stock option plans COMPLIES III.5.
5.5. Disclosure of Remunerations PARTIALLY COMPLIES 0.2.4.
II.2. Board of Directors
1. Delegation of the day-to-day management of the Company COMPLIES II.1.2.2.
2. The Company pursues its goals and there are limits to the delegation of
powers COMPLIES II.1.2.2.
3. Coordination of the work of the non-executive directors DOES NOT COMPLY 0.2.5.
4. Disclosure of the activities of the non-executive directors COMPLIES II.1.2.2.
5. Rotation of the board member responsible for financial matters COMPLIES II.1.4.1.
II.3. Executive Committee
1. Provision of information to the other members of the governing bodies COMPLIES II.1.2.2.
2. Send the notices of meetings and the minutes of meetings to the chairmen II.1.4.1.
of the Board of Directors and the Audit Board COMPLIES II.1.4.1.
3. Send the notices of meetings and the minutes of meetings to the chairmen of
the General and Supervisory Board and the Financial Matters Committee N/A II.1.4.1.
II.4. Audit Committee
1. Duties of the General and Supervisory Board N/A II.1.
2. Disclosure of the annual report on the Company website COMPLIES II.1.1.
3. Description of the supervisory activity in the annual report COMPLIES II.1.1.
4. Representation of the Company before the external auditor COMPLIES II.1.1.
Assessment and proposal for the removal from office of the external
5. auditor COMPLIES II.1.1.
II.5. Special Committees
1. Existence of a performance assessment committee and a committee to
evaluate the adopted governance system
COMPLIES II.1.4.2.II.
1.4.3.
2. Independence of the members of the remuneration committee COMPLIES II.4.1.
3. Minutes COMPLIES II.1.4.1.
II.1.4.2.
III. Information and Auditing II.4.1.
III.1. General Disclosure Obligations
2. Investor support office COMPLIES III.7.
3. Disclosure of information in English on the Company's website COMPLIES III.7.

CIMPOR is not bound by nor has it voluntarily agreed to comply with any other corporate governance code.

0.2. Comply or Explain

CIMPOR has been analysing, subsequent to the approval in September 2007 of the CMVM's Corporate Governance Code, the recommendations contained in that Code so that the Company may adopt the practices most suited to fostering the transparency and accountability of its governance model and practices.

In its appraisal CIMPOR considered such recommendations not on the basis of a rigid model – where one size fits all – but as a set of practices to be regarded in the light of the Company's specific features, i.e. tailor made, and which integrate a balanced consideration of the interests of its shareholders and other stakeholders.

Some of these recommendations have, for a range of reasons, still not been complied with or are only partially complied with.

0.2.1. Blocking of Shares in the Event of Suspension of the General Meeting

Recommendation I.2.2.: Should the General Meeting be suspended, the Company must not require that shares be immobilised over the entire period until the meeting is resumed; the company shall limit such blocking to that ordinarily required prior to the initial meeting.

CIMPOR's articles of association do not contain any specific provision on the blocking of its shares in the event of the suspension of the General Meeting. Nonetheless, paragraph no. 3 and no. 4 of article 7 establish that shareholders intending to attend the General Meeting will have to keep their shares registered in their name until the conclusion of the meeting and, therefore, the fact that shares must remain immobilised and cannot be traded until such time means that compliance with this recommendation is not deemed to exist.

Furthermore, the discussion of this matter is still ongoing in the context of the transposition of Directive 2007/36/EC of the European Parliament and the Council, of 11 July 2007, relative to the exercise of certain rights by the shareholders of listed companies. Accordingly, the blocking method will be replaced by the "registration date" method envisaged in that Directive.

0.2.2. Independence of the Chairman of the Audit Board

Recommendation II.1.3.1: The chairman of the Audit Board, Audit Committee or the Financial Matters Committee, depending on the applicable model, must be independent and be adequately empowered to carry out the duties of that office.

The Chairman of the Audit Committee is adequately empowered to perform the duties inherent to that role, considering his qualifications and constancy in the Company, in that capacity, since March 1992.

CIMPOR does not fully comply with this recommendation since the Chairman of the Audit Board is not deemed to be independent in the light of article 414(5)b) of the Portuguese Companies' Code. Two reasons are essentially at the root of not ensuring compliance with this recommendation.

Firstly, it is deemed, in the case under analysis, that the performance of a role since that date does not jeopardise the capacity to be impartial of those performing such roles. It is CIMPOR's opinion that the criteria for remaining in the post should be merely indicative, to be appraised on a case-bycase basis, as is proposed in point 13 – under the heading of "Independence" – of the European Commission's Recommendation of 15 February 2005, relative to the role of non-executive directors or members of the supervisory board of listed companies and of the committees of the board of directors or of the supervisory board. It is, in fact, accepted that the competent body, in view of the specific circumstances of the person or company, consider a certain member to be independent even when remaining linked to the company for more than 3 terms of office or 12 years.

Secondly, for an industrial company, as is the case of CIMPOR, it is especially important that the Audit Board contain a member who knows the Company business and its reality. Based on the fact that this body already has independent members in the majority, one of which has specific skills in the auditing and accounting field, it is our understanding that the Board's chairman should be someone with solid knowledge of the Company's business. This fact, in CIMPOR's opinion, must take precedence over the "seniority" criteria set forth in the recommendation in question.

0.2.3. Statement on Remuneration Policy

Recommendation II.1.5.2: The Remuneration Committee and the Board of Directors shall submit a statement on the remuneration policy of the Management and Supervisory bodies and other directors to the Annual General Meeting for appraisal, as provided for in Article 248-B(3) of the Portuguese Securities' Code. The shareholders shall be informed in detail of the criteria and main factors used in the evaluation of performance for determining the variable component of remuneration, whether in the form of share bonuses, stock purchase options, annual bonuses or other awards.

CIMPOR has chosen not to submit a statement on the remuneration policy of the members of the governing bodies, since it considers that the shareholders, by depositing the responsibility for defining such policy in a duly empowered Remuneration Committee, have conferred said committee with total autonomy in such matters. It will however submit such statement at the next Annual General Meeting as it is now obliged to do under recent legislation - Law no. 2/2009 of 19 June.

It was the understanding of the Board of Directors in office at the time of the last Annual General Meeting that, since it was at the end of its term of office, it should not submit a statement on the future remuneration of the policy of such officers to that Annual General Meeting where a new board of directors was to be elected.

0.2.4. Disclosure of Remunerations

Recommendation II.1.5.5: The remuneration of the members of the management and supervisory bodies shall be individually and annually disclosed, detailing the different fixed and variable components of the remuneration wherever such exist, as well as any other remuneration received from other companies of the group or from companies controlled by shareholders possessing qualifying holdings.

The Company only partially complies with this recommendation since it does not disclose the remuneration that members of the management and supervisory bodies have earned from companies controlled by shareholders with qualifying holdings.

It is CIMPOR's understanding that such information is of no relevance herein, and this understanding has in fact been vindicated by the CMVM itself, since it has not included it in the recently approved new set of recommendations.

0.2.5. Coordination of the Work of Non-Executive Directors

Recommendation II.2.3: In the event the Chairman of the board of directors performs executive duties, the board of directors must find effective mechanisms for co-ordinating the work of non-executive members, which ensure in particular that such directors can make decisions in an independent and informed manner, and it must duly explain these mechanisms to the shareholders in the corporate governance report.

This recommendation did not apply to CIMPOR since prior to 3 December 2009 the Chairman of the Board of Directors did not perform an executive role. On that date the Chairman of the Board of Directors took on an executive role by also chairing the Executive Committee.

Given the short span of time since that change, the Company has not had the opportunity to define the mechanisms to co-ordinate the work of the non-executive directors that this recommendation refers to, even though those directors, irrespective of those mechanisms, are still considered capable of deciding in an independent and informed manner.

I. GENERAL MEETING

I.1. General Meeting Board

Up to 13 May 2009, the date of the last General meeting of CIMPOR, the General Meeting Board was composed of:

Appointment
date
Chairman Miguel António Monteiro Galvão Teles 20/02/2001
Vice-Chairman Luís Manuel de Faria Neiva dos Santos 11/05/2007

On that date, the General Meeting elected the following members for the 2009-2012 four-year period:

Appointment
date
Chairman Luís Manuel de Faria Neiva dos Santos 11/05/2007
Vice-Chairman Rodrigo de Melo Neiva dos Santos 13/05/2009

None of the members are or have been in any situation of incompatibility as set forth in article 414- A(1) of the Portuguese Companies Code, and all of them are considered independent in the light of the requirements envisaged in article 414(5) of the same Code.

The Chairman of the General Meeting Board relies on the support of the Vice-Chairman and the Company Secretary, within their respective legal powers, to convene and conduct the General Meetings. The Chairman is further provided the logistics support and human resources that are vital to the good performance of the role, particularly where contact with shareholders and the guarantee of the correct running of the General Meetings is concerned. Accordingly, the Company considers recommendation I.1.1 to be fully complied with.

The remuneration of the Chairman of the General Meeting Board takes the form of an attendance fee, which was adjusted following the last General Meeting, by decision of the Remuneration Committee, from EUR 1,000 to EUR 4,500.

The Company, in harmony with recommendation I.5.1, publishes the minutes of the meetings of the General Meeting of the preceding three years on its website (together with the respective agenda and simple attendance statistics). Additionally, it has also been CIMPOR's practice to immediately disclose a summary of the resolutions adopted in the respective General Meetings.

I.2. Admission to the General Meeting and Exercising Voting Rights

CIMPOR has implemented an ongoing policy of motivating shareholders to exercise their voting rights by facilitating the admission to and the exercise of voting rights of General Meeting (particularly postal voting), and by reducing the number of shares required by a shareholder to attend (and vote) at General Meetings.

In accordance with the provisions of article 7 of the articles of association and in conformity with recommendation I.2.1, the General Meeting is composed of shareholders with the right to vote. Hence, only those shareholders holding at least one share registered in their name on the fifth business day prior to the date convened for the General Meeting which the shareholder intends to attend, and provided that such shares remain registered in the shareholder's name until the Meeting is concluded, are legitimately entitled to take part in general meetings. To be admitted, the shareholders shall send the statement issued by the respective financial intermediary to the Chairman of the General Meeting, at least three business days prior to the date convened for the General Meeting, which proves that at least on the fifth business day prior to the set date such shares were registered in their name and they are also blocked and cannot be traded until the General Meeting is closed.

As referred to above, CIMPOR has already provided for the principle of "one share, one vote" in its Articles of Association (article 7(2)), thus ensuring conformity with CMVM recommendation I.3.3.

According to article 7(5) of the articles of association, in the event of co-ownership of shares, only the common representative or representative of the co-holders shall attend the General Meeting.

CIMPOR's articles of association do not establish any quorum for the sitting of meetings or voting that is higher than that legally provided for, neither do they envisage any special system for equity rights. Accordingly, the Company fully complies with recommendation I.4.1.

CIMPOR's articles of association do not establish any restriction on postal voting rights, in conformity with recommendation I.3.1. The procedures to be taken and the applicable time limits are set forth in article 7(6), according to which any shareholder wishing to vote by correspondence must ensure that the Chairman of the General Meeting receives, on or before the second business day prior to the date convened for the General Meeting, the indication of vote on each item of the meeting's agenda (in conformity with recommendation I.3.2.).

Shareholders must use voting ballots that clearly and unambiguously express their voting intention. They can use the draft voting ballot available on the Company's website or request it in writing, addressed to the Chairman of the General Meeting (such request must be received on or before the eighth business day prior to the date set for the General Meeting).

CIMPOR has made a draft ballot form available over the internet for voting purposes, though it will accept any ballot form that clearly and unmistakably expresses the shareholder's wishes.

Furthermore, article 7(6) of the articles of association establishes that postal votes are deemed negative votes in relation to resolution proposals submitted subsequent to the date on which those postal votes have been submitted.

The notices convening General Meetings also set out the rules under law and the articles of association relative to admission and the exercise of voting rights, in order to encourage shareholder participation in such Meetings. Such rules include, in particular:

  • Shareholders may be represented by third parties, and, to that end, they must ensure that the Chairman of the General Meeting receives the necessary instruments of representation by 5:00 pm of the third business day prior to the date set for the respective General Meeting;
  • In the fifteen days prior to the General Meeting shareholders may consult the information indicated in Article 289 of the Portuguese Companies Code at the Company's registered office during business hours. Shareholders are also informed of this fact in the notice convening the meeting;
  • Postal voting must comply with the procedures established in article 7 of the articles of association, as described above.

Given the current concentration of CIMPOR's shareholder structure, the use of electronic means for voting at Shareholders' General Meetings, other than those mechanisms available over the Internet, has not been deemed necessary.

In summary: The establishment of the "one share, one vote" principle means that compliance with the deadlines for demonstrating entitlement to attend and vote at General Meeting amounts to the only restriction established by the articles of association on the exercise of the right to vote.

I.3. The Company's Remuneration Policy and Assessment of the Board of Directors

The General Meeting has not, to date, intervened in any way in the Company's remuneration policy, essentially due to the fact that it has appointed a committee to set the remuneration of the governing bodies and this committee is implicitly tasked with carrying out the respective assessment.

Nonetheless, the shareholders have always undertaken a general appraisal of the Company's management in the General Meetings, pursuant to article 376 of the Companies' Code, and that assessment likewise implies the appraisal of the members of the Board of Directors.

I.4. Corporate Control Measures

There are no measures whatsoever, in the Articles of Association or elsewhere, liable to interfere with the success of a takeover bid. There are no other defensive measures aimed at seriously eroding the Company's worth in the event of a shift in control or change in the composition of the Board of Directors, thus ensuring compliance with CMVM recommendation I.6.1 and I.6.3.

Specifically: no shareholder holds any special rights, the articles of association do not envisage any restriction to the number of votes that can be held or exercised by a single shareholder, and therefore recommendation I.6.2 does not apply to CIMPOR.

There is neither any significant agreement to which the Company is a party and which, in the event of any change in control of the Company, would automatically come into force, be amended or cease to be effective. There are only, as is market practice, certain debt instruments contracted by subsidiaries of CIMPOR that include change of control clauses, which establish the possibility of the immediate maturity of the debt by the respective financial entity (see Note 37 of the Notes to the Consolidated Financial Statements).

There are also no agreements between the Company and the members of CIMPOR's Board of Directors or senior management (as interpreted under article 248-B(3) of the Portuguese Securities' Code) that envisage the payment of compensation in the event of resignation, dismissal without just cause or severance of their employment contract with the Company, in the wake of a change in control of the Company.

II. MANAGEMENT AND SUPERVISORY BODIES

II.1. Governing Bodies

The governing bodies of CIMPOR are the General Meeting, the Board of Directors, the Audit Board and the Statutory Auditor.

Pursuant to article 6(2) of the articles of association, the members of the governing bodies are appointed for a four-year term of office, and they may be re-elected.

II.1.1. Audit Board and Statutory Auditor

An Audit Board and a Statutory Auditor or Firm of Statutory Auditors, elected by the General Meeting, are responsible for the supervision of the Company, in accordance with article 17 of the articles of association.

The Audit Board is composed of three members in office and a substitute. If the General Meeting does not indicate the Chairman of the Audit Board then such will be appointed by the board members from among their number. The Statutory Auditor or a Firm of Statutory Auditors is appointed following proposal by the Audit Board.

The General Meeting of 13 May 2009 maintained the same members of the Audit Board that had been in office the preceding term (the only difference being that Jaime de Macedo Santos Bastos had previously performed such a role in the capacity of a natural person):

Term of
office in
Appointment date progress
Chairman
Members
Ricardo José Minotti da Cruz Filipe
Luís Black Freire d'Andrade (1)
J. Bastos, C. Sousa Góis & Associados, SROC,
31/03/1992 (3)
11/05/2007
2009-2012
2009-2012
Lda., represented by Jaime de Macedo Santos
Bastos (1) (2)
11/05/2007 2009-2012
Substitute João José Lopes da Silva (1) 09/05/2008 2009-2012

(1) Independent member.

(2) Changed from being Substitute to full member in office on 28/01/2008.

(3) The Chairman of the Audit Board had initially been the Chairman of the Supervisory Committee of CIMPOR – Cimentos de Portugal E.P. since 12/02/1987.

Deloitte & Associados, SROC, S.A., represented by João Luís Falua Costa da Silva, remain as CIMPOR's Statutory Auditor.

There are no specific rules regarding the replacement of members of the Audit Committee. The Company's Articles of Association only provides for the change to the number of members (within statutory limits) during a term of office. If an extra member is appointed, the term of office of the member(s) elected by such means shall coincide with that of the other members already in office.

The Audit Committee is governed by the regulations available for viewing on CIMPOR's website (at www.cimpor.pt), which establish inter alia the scheme applying to the incompatibility of its members, referring solely to the requirements set forth in article 414-A(1) of the Portuguese Companies' Code (according to which the members of this governing body may not hold management or supervisory roles in five companies).

All the members of the Audit Committee comply with the incompatibility rules established in article 414-A(1) of the Portuguese Companies' Code.

As above-stated, the majority of members of the Audit Board are independent, with respect to the provisions of article 414(5) of the Portuguese Companies' Code. The member of the Board, Jaime Macedo Santos Bastos, has extensive auditing and accounting experience.

The Audit Board of CIMPOR, with regard to section 0.4. of CMVM Regulation no. 1/2007, established mechanisms in its internal regulations that allow it to evaluate the independence of its members and their compliance with the rules on incompatibility established in law, whether at the time of appointment and also at any other subsequent time. Owing to these mechanisms, the gauging by that body of the independence and incompatibility of its members, which underpins the information contained in this report, is based on the information provided by said members and having the range of situations envisaged in article 414(5) and 414-A of the Portuguese Companies' Code as a reference.

The Chairman of the Audit Board has powers that are adequate to the performance of that office, in accordance with CMVM recommendation II.1.3.1. Notwithstanding, CIMPOR does not, as already stated above, agree with the provisions of that recommendation relative to the classification of the Chairman as "not independent", in the light of article 414(5)b) of the Portuguese Companies' Code, due to the fact that said Chairman has held office for more than 4 terms.

The Audit Board, according to article 6 of its Regulations and in conformity with applicable legislation and recommendations II.4.2, II.4.3, II.4.4 and II.4.5, performs inter alia the following duties relative to the statutory auditing of the accounts and auditing of the Company:

  • The Audit Board proposes to the General Meeting the appointment of a Statutory Auditor or Firm of Statutory Auditors, supervises and assesses its independence, the scope of the respective services and the audit of the Company's accounts and financial statements;
  • The Audit Board prepares and publishes on the Company's website the annual report of its activities at the same time as the financial statements. In that report, it describes the supervisory activities carried out during the financial year under analysis, and referring,

where applicable, to any constraints found.

  • The Audit Board represents the Company before the external auditor, in all intents and purposes, and it is responsible for:
  • Proposing the hiring, renewal of the contract and remuneration of the external auditors;
  • Ensuring that the external auditor is afforded adequate conditions for the provision of services to the Company and the companies with which it has a group or control relationship;
  • Appraising the content of the audit reports, annually evaluate the performance of the external auditor and propose the removal from office to the General Meeting whenever just cause for such exists.

The Audit Board held 13 meetings during 2009, drawing up minutes of those meetings.

II.1.2. Board of Directors

The Board of Directors, pursuant to article 11 of the articles of the association, is composed of five to fifteen members, one of whom is chairman and the others are members. The Board of Directors is elected by the General Meeting, which also appoints the chairman (who holds the casting vote pursuant to article 11(3) of the articles of the association).

The Board of Directors was composed of the following officers up to 13 May 2009, who, despite having terminated their term in office on 31 December 2008, remained in office until 13 May 2009 pursuant to article 391 of the Portuguese Companies' Code:

Appointment
date
Chairman Ricardo Manuel Simões Bayão Horta 31/07/2001
Directors Luís Eduardo da Silva Barbosa 31/07/2001
Jacques Lefèvre 31/07/2001
Jean Carlos Angulo 31/07/2001
Jorge Manuel Tavares Salavessa Moura 31/07/2001
Luís Filipe Sequeira Martins 12/02/1987 (1)
Manuel Luís Barata de Faria Blanc 31/07/2001
Pedro Maria Calaínho Teixeira Duarte 31/07/2001
Vicente Árias Mosquera 31/07/2003
José Manuel Baptista Fino 27/04/2005
José Enrique Freire Arteta 27/04/2005

(1) Appointment date as member of the Management Board of CIMPOR – Cimentos de Portugal, E.P.

From 13 May 2009, the members of the Board of Directors elected for the four-year period from 2009 to 2012 by the General Meeting held on that date, were:

Term of
Appointment office in
date progress
Chairman Ricardo Manuel Simões Bayão Horta 31/07/2001 2009-2012
Directors Luís Eduardo da Silva Barbosa 31/07/2001 2009-2012
Vicente Árias Mosquera 31/07/2003 2009-2012
António Sarmento Gomes Mota 13/05/2009 2009-2012
Pedro Maria Calaínho Teixeira Duarte 31/07/2001 2009-2012
Jean Desazars de Montgailhard 13/05/2009 2009-2012
José Manuel Baptista Fino 27/04/2005 2009-2012
Jorge Humberto Correia Tomé 13/05/2009 2009-2012
José Enrique Freire Arteta 27/04/2005 2009-2012
Jorge Manuel Tavares Salavessa Moura 31/07/2001 2009-2012
Luís Filipe Sequeira Martins 12/02/1987 (1) 2009-2012
Manuel Luís Barata de Faria Blanc 31/07/2001 2009-2012
António Carlos Custódio de Morais Varela 13/05/2009 2009-2012
Albert Corcos 13/05/2009 2009-2012
Luís Miguel da Silveira Ribeiro Vaz 13/05/2009 2009-2012

(1) Appointment date as member of the Management Board of CIMPOR – Cimentos de Portugal, E.P.

Subsequently, Pedro Maria Calaínho Teixeira Duarte resigned from the post of Director of the Company for professional reasons on 27 August 2009, which, pursuant to article 404(2) of the Portuguese Companies' Code, became effective on 30 September 2009. The Board of Directors met on 25 November 2009 and decided to co-opt Pedro Manuel Abecassis Empis as replacement to the office of Director of the Board of Directors (for the term of office currently underway), pursuant to and for the purposes of the provisions of article 393(3)b) of the Portuguese Companies' Code (that decision requires ratification at the next General Meeting of the Company, in accordance with article 393(4) of that Code).

On 3 and 4 February 2010, Jean Desazars de Montgailhard and Albert Corcos, respectively, resigned from the office to which they had been elected, which, pursuant to the abovementioned legislation, became effective on 31 March 2010.

On 18 March 2010, Ricardo Manuel Simões Bayão Horta presented his resignation from the offices of Chairman of the Board of Directors (which he had been elected to at the General Meeting of 13 May 2009) and Chairman of the Executive Committee (which he had been performing since 3 December 2009).

The Board of Directors is elected by list (voting is solely for the lists) and one member may be elected from among the persons proposed on lists (the list must identify at least two persons eligible for the post) that are endorsed and submitted by groups of shareholders (provided these groups represent at least 10% and no more than 20% of the share capital). A shareholder may not endorse more than one list. Should there be such a proposal, the director in question is elected separately and prior to the election of the others. If more than one group submits a list, they will be voted on jointly.

Pursuant to the Regulations of the Board of Directors of CIMPOR, which can be viewed on the website of CIMPOR (at www.cimpor.pt), only article 14 provides for, in the event of any incapacity or incompatibility of any member subsequent to their appointment as a director, which would have impeded such appointment, and where the director does not cease to perform such role or remove the supervening incompatibility within thirty days, the Audit Board to declare their removal from office.

The articles of association do not establish any specific rules regarding the replacement of members of the Board of Directors. The articles of association only provide for (ii) the change to the number of members (within statutory limits) during a term of office (see article 6) and (ii) rules concerning substitution in the event of permanent absence (see article 11).

According to Article 11(6) of the articles of association, three successive absences or five absences spread over the course of a term of office, from meetings of the Board of Directors by any member of the Board, without justification accepted by the Board proper, will lead to the Board declaring the respective director to be in definitive absence.

Furthermore, pursuant to article 13 of the Board of Directors' Regulations, a director deemed to be in definitive absence will be replaced, as follows:

  • By co-option, unless the number of directors in office is not sufficient for the Board to operate;
  • When co-option has not been implemented within sixty days of the absence, the Audit Board can appoint a replacement, subject to ratification by the General Meeting;
  • By election of a new director.

The same provision also provides for, in the event of permanent impediment to the Chairman, the Board of Directors to proceed in harmony with its full powers to represent and manage the Company and appoint from among its members a director that will temporarily take on the office of Chairman until a new Chairman of the Board of Directors is appointed at the next meeting of shareholders.

If an extra election is held or substitution occurs, the term of office of the member(s) thus elected shall coincide with that of the other directors.

II.1.2.1. Overview of the Board of Directors

The Board of Directors, in harmony with CMVM recommendation II.1.2.1. includes a number of nonexecutive members guaranteeing the effective supervision, monitoring and assessment of the activity of the executive members. Thus, the majority of the current members of the Board of Directors of CIMPOR (eight out of a total of thirteen) are non-executive directors.

The non-executive directors include five independent directors, pursuant to Article 414(5) of the Portuguese Companies' Code:

  • Luís Eduardo da Silva Barbosa
  • Vicente Árias Mosquera
  • Dr. António Sarmento Gomes Mota
  • Jorge Manuel Tavares Salavessa Moura
  • Pedro Manuel Abecassis Empis

The directors José Manuel Baptista Fino, Jorge Humberto Correia Tomé and José Henrique Freire Arteta, despite being proposed and elected in the General Meeting on an individual basis, are not considered to be "independent non-executive directors" since they hold management positions in companies with shareholdings in CIMPOR exceeding 2% (or which, with specific reference to José Henrique Freire Arteta, only ceased to have that qualifying holding in 2010), those companies being, respectively, Investifino - Investimentos e Participações, SGPS, S.A., Caixa Geral de Depósitos, S.A., and Bipadosa, S.A..

For the purpose of section 0.4. of the Annex to CMVM Regulation no. 1/2007, the assessment of the independence of the Company's directors, underpinning the information contained in this report, is based on the information they provide, with the range of situations envisaged in the abovementioned legislation as a reference.

Consequently, more than one-quarter of the members of the Board of Directors (five out of thirteen) are independent non-executive directors, which is deemed to be an appropriate total – considering CIMPOR's size and its shareholder structure – and this number is in conformity with that established in CMVM recommendation II.1.2.2.

Additionally, none of the non-executive directors meet the terms of any of the situations envisaged in article 414-A(1) of the Portuguese Companies' Code, with the exception of sub-paragraphs (b) and (h), in the capacity of directors of CIMPOR proper and/or members of the management or supervisory bodies of five companies (see Annex I).

The fact that the referred to recommendations on the qualitative composition of the Board of Directors are expressly provided for in article 7 of that body's regulations well illustrates the importance CIMPOR places on adopting modern international guidelines on corporate governance and the Company's concern with the adjustment thereto.

II.1.2.2. Method of Functioning of the Management Body

The Board of Directors must meet at least once quarterly, without prejudice to other interim meetings which may be deemed necessary. No resolutions can be taken unless a majority of its members is present or represented, and each director may only represent one other member of the board of directors. The Board met 12 times during 2009 and the minutes of the meetings were drawn up.

The Board of Directors approved its operating regulations on 26 March 2008, which were reviewed and updated on 3 March 2010, and they are available for viewing on CIMPOR's website (at www.cimpor.pt). These regulations establish, inter alia, rules on the duties of directors, situations of conflicts of interest and relations with shareholders and the market.

The powers of the Board of Directors are those conferred by the Portuguese Companies Code, plus the following powers, pursuant to Articles 4 and 5 of the articles of association: (i) increase the share capital with the paying in of cash up to the limit of one billion euros; (ii) issue autonomous warrants on its own securities (which may grant the right to subscribe or acquire shares in the Company, up to the aforementioned limit of one billion euros); (iii) issue bonds or other debt securities of any kind or form permitted by law.

Following in the path of CMVM recommendation II.2.1, the Board of Directors has delegated all its powers for the day-to-day running of the Company to an Executive Committee composed of five of its members, which cannot decide on matters established by law or by the Board of Directors' Regulations as non-delegable. These being:

  • Pursuant to Article 407(4) of the Portuguese Companies' Code:
  • Selection of the chairman of the Board of Directors, when applicable;
  • Co-option of directors;
  • Request to convene General Meetings;
  • Annual reports and accounts;
  • The provision of bonds and personal or real guarantees by the Company;
  • Change of head office and share capital increases;
  • Company merger, split and transformation operations;
  • Pursuant to article 18(2) of the Board of Directors' Regulations and in conformity with Recommendation II.2.2:
  • Definition of the Company's strategy and general practices;
  • Definition of the Group's business structure;
  • Decisions that must be considered strategic due to the sums or risk involved, or their special nature;
  • Issue of preferred shares without voting rights, the issue of autonomous warrants on its own securities and the issue of subordinated bonds, bonds with a maturity exceeding ten years or other debt securities, pursuant to the articles of association;
  • Approval of the annual business and financial plans;
  • Appointment of the Company Secretary and substitute;

The Executive Committee shall also, under article 18(4) of those Regulations, submit to the Board of Directors for decision matters concerning any business, commitments, contracts, agreements and conventions to be concluded with shareholders possessing 2% or more of the share capital of CIMPOR (or with entities bound to such shareholders by any form of relationship, pursuant to article 20 of the Portuguese Securities' Code), whenever the nature or monetary value of such means that they may not be considered day-to-day business.

Pursuant to article 18(2) of the Board of Directors' Regulations and according to the resolution concerning the delegation of powers approved by the Board of Directors, "strategic decisions" are deemed to mean:

  • Acquisitions of equity interests or physical assets (i) outside of the context of the main business activity of the CIMPOR Group, (ii) in countries where the Group does not operate, or (iii) with a value per acquisition operation exceeding ten million euros;
  • The sale of equity holdings or physical assets exceeding five million euros in value per transaction;
  • The implementation of development investments worth more than ten million euros if provided for in a budget approved in advance by the Board of Directors or five million euros if not provided for in advance in any budget;
  • The granting of credit to customers where such credit exceeds five million euros in value per customer;
  • Decisions in relation to the annual budget and three-year plans, including the investment plan.

Moreover, and to the same end, matters relating to the annual report and accounts are also deemed to include the quarterly and half-year reports as well as the Sustainability Report.

The non-executive directors of the Company, in compliance with the duties attributed them by law and the regulations, have developed their role of supervising, monitoring and assessing the activity of the executive members in an effective manner and without having encountered constraints of any nature (see CMVM recommendation II.2.4.).

Pursuant to the provisions of article 407(8) of the Portuguese Companies' Code and article 18(5) and 18(6) of the Board of Directors' Regulations, the non-executive directors of CIMPOR have performed the necessary activities to ensure compliance with their general duty to monitor the activities of the Executive Committee.

Accordingly, the delegation of the day-to-day management under such rules does not prevent the Board from taking resolutions on such matters, since the non-executive directors are responsible by law for the general monitoring of the performance of empowered director(s) or the executive committee, as well as being liable for any acts or omissions of such when, aware of such acts or omissions or the intention to practise such, they do not call on the Board to intervene and take suitable measures.

The activity of the non-executive directors in 2009 primarily focused on the following two areas:

  • The specific activity of the on Corporate Governance, Sustainability and Social Responsibility Committee (see section II.1.4.2. below);
  • The supervision of the executive management, particularly through:
  • The assiduous attendance of meetings of the Board of Directors;
  • The timely appraisal of the matters submitted to the Board of Directors;
  • Analysis of the minutes of the resolutions of the Executive Committee;
  • Submitting requests for clarification to the Executive Committee on issues requiring such.

The following procedures have been created to ensure that all members of the Board of Directors are aware of the decisions taken by the Executive Committee and, in particular, so that the nonexecutive directors take their decisions in an independent and informed manner (as envisaged in article 20 of the Board of Directors' Regulations):

  • The minutes of Executive Committee meetings shall be distributed to members of the Board of Directors;
  • At meetings of the Board of Directors, the Executive Committee shall regularly summarise significant actions taken since its previous meeting and shall provide the directors with any additional clarification and information that is requested;
  • The members of the Board of Directors can also request that the Executive Committee provide documents or information outside of the Board's meetings.

II.1.3. Governance Model

Following the amendments made to the Portuguese Companies' Code by Decree Law no. 76/2006 of 29 March, the Annual General Meeting of 11 May 2007 decided to adopt the one-tier system provided for in article 278(1)a) of that Companies' Code. Accordingly, the management of the Company is performed by the Board of Directors, and the Audit Board and Statutory Auditor perform supervision.

Close on three years after this decision, the Board of Directors considers the model adopted to adequately meet the specific features of the Company, and it has ensured that CIMPOR's governing bodies perform correctly, not only by fully complying with applicable legislation but also according to the best national and international practices on corporate governance, transparency and the accountability of management to the shareholders, the market and all other stakeholders in the Company. This has, as it happens, been a concern of the Board of Directors in its relations with the shareholders and the market, as has been established in article 26 of the Board of Directors' Regulations.

Consequently, and in accordance with the assessment performed by the Board of Directors for the purpose of complying with CMVM recommendation II.1.1.1., it is this body's opinion that the implementation of the corporate governance model adopted at the General Meeting of 11 May 2007 has been achieved in a manner that has avoided the occurrence of any constraints on its operations, therefore the proposal of any measures by the Board of Directors to alter its modus operandi is not justified.

II.1.4. Committees with Management and Supervisory Powers

II.1.4.1. Executive Committee

Under the Board of Directors that held office up to the general Meeting of 13 May 2009, the members of the Executive Committee were:

  • Pedro Maria Calaínho Teixeira Duarte (Chairman)
  • Jean Carlos Angulo
  • Jorge Manuel Tavares Salavessa Moura
  • Luís Filipe Sequeira Martins
  • Manuel Luís Barata de Faria Blanc

Following that General Meeting, the directors of the Executive Committee by decision of the recently elected Board of Directors, were:

  • Jorge Manuel Tavares Salavessa Moura
  • Luís Filipe Sequeira Martins
  • Manuel Luís Barata de Faria Blanc
  • António Carlos Custódio de Morais Varela
  • Luís Miguel da Silveira Ribeiro Vaz

Jorge Salavessa Moura was chosen to chair the Executive Committee and Luís Filipe Sequeira Martins to substitute him during his absences.

On 3 December 2009, Jorge Salavessa Moura ceased to perform executive functions, as the Board of Directors decided to replace him on that Committee and as Chairman of the same with Ricardo Bayão Horta, Chairman of the Board of Directors of the Company.

The decisions of the Executive Committee are taken by the majority of votes of those present or represented, and decisions cannot be taken without a majority of members attending or being represented at a meeting. The Executive Committee met 46 times during 2009 and the minutes of the meetings were drawn up (see CMVM recommendation II.5.3).

Notwithstanding the collective exercise of duties delegated in the Executive Committee, each of its members has been specifically entrusted with the responsibility of supervising certain Functional Areas (see section II.2.1. below). The financial area has been attributed to António Varela, who is performing this duty in his first term in office, thus complying with CMVM recommendation II.2. 5.

It is the Executive Committee's practice, according to recommendations II.3.1. and II.3.2., to comply with the procedures necessary for guaranteeing full transparency of its relations with the other governing bodies. In this context:

  • The executive directors of CIMPOR provide the information requested from them by the members of the governing bodies, in good time and a manner appropriate to the request made;
  • The Chairman of the Executive Committee provides the Chairman of the Board of Directors and the Chairman of the Audit Board with the minutes of the Committee's meetings. It is certain that the respective notice of meeting is known to all since such meetings occur weekly on the same day.

II.1.4.2. Corporate Governance, Sustainability and Social Responsibility Committee

In response to international corporate governance best practices, a consultative committee on corporate governance was set up by the Board of Directors at the start of 2002.

Subsequently, the Board of Directors decided to extend the scope to include issues concerning sustainability and the social responsibility of the Group, and this committee which changed its name to "Corporate Governance, Sustainability and Social Responsibility Committee", is responsible for the following, as provided for in article 23 of the Board of Directors' Regulations:

  • Evaluate the corporate governance model, principles and practices of CIMPOR and its most significant subsidiaries, in order to constantly improve it and to present, with that intention, proposals to the Board of Directors that encompass, in particular, the running and powers of the Board of Directors and its internal committees and respective articulation with the other governing bodies and management structures, as well as the prevention of conflicts of interest and information discipline;
  • Define the guidelines of the policies that ensure the sustained development of the Company and the CIMPOR Group, fostering social responsibility and environmental protection;
  • Define, collaborate in the implementation and supervise compliance with standards of conduct appropriate to compliance with strict ethical and moral principles in the performance of the duties attributed to the members of the governing bodies and employees of the CIMPOR Group;
  • Improve and update the Irregularities' Reporting Regulations and the Code of Ethics adopted by the Group, submitting proposals in this regard to the Board of Directors, whenever such is deemed necessary;
  • Coordinate and draw up the annual report on the management of the Company in the areas of its responsibility and submit proposals to the Board regarding the statements to be

included in that report concerning the effectiveness of the adopted governance model, the standards of conduct and the internal control and risk management systems;

• Submit proposals to the Board relative to the adoption of the measures to ensure the Company complies with legal and regulatory requirements, corporate governance recommendations and good practices, standards of conduct and social responsibility and sustainability standards.

This committee is thus equipped with all the powers necessary for performing the duties established in the second part of CMVM recommendation II.5.1.

The committee has between three and seven non-executive directors and at least one of them must comply with the criteria of independence applicable to the members of the Board of Directors. The committee is currently composed of three directors, all non-executive and independent. These being:

  • Luís Eduardo da Silva Barbosa (Chairman)
  • Jorge Manuel Tavares Salavessa Moura
  • Pedro Manuel Abecassis Empis

The Committee meets whenever necessary and, in principle, at least once every quarter. It can call on external consultants in different areas of expertise, at the Company's expense, whenever it deems necessary. The Committee met 6 times during 2009 and the minutes of the meetings were drawn up (see recommendation II.5.3).

II.1.4.3. Appointments and Assessment Committee

Created on 3 March 2010, following the revision and update of the Board of Directors' Regulations, the duties of the Appointments and Assessment Committee inter alia, and in accordance with article 24(1) of the abovementioned Regulations, are to assist the Board in the following matters:

  • Occupancy of positions vacated on the Board of Directors, pursuant to law and the articles of association;
  • Choice of Directors to appoint to the Executive Committee;
  • Annual process of overall assessment of the Board of Directors and its commissions as well as, on consulting the Executive Committee chairman, the assessment of the members of that Committee;
  • Drawing up opinions to be submitted to the Remunerations Committee for the process of defining the remuneration of members of the governing bodies and, in particular, the variable component of the remuneration of the members of the Executive Committee.

Paragraph nos. 2 and 3 of the same article establish some of the powers of the Appointments and Assessment Committee relevant to the performance of the above-stated duties, which include all those provided for in the first section of CMVM recommendation II.5.1.

The Committee is composed of the Chairman of the Executive Committee, this being an intrinsic part of the duties required of the office, and a further two to six non-executive directors, at least one of whom must comply with the criteria of independence applying to the members of the Board of Directors. Nonetheless, in accordance with article 25(5) of the Board of Directors' Regulations, the Chairman of the Executive Committee is not permitted to take part in the discussion and vote on resolutions concerning the process of selection of non-executive directors, as well as intervene, after providing an opinion, in the discussion on the assessment of the performance and fixing of the remuneration and respective criteria of the members of the Executive Committee.

This Committee is currently composed of four directors, two of which are non-executive and independent. These being:

  • António Sarmento Gomes Mota (Chairman)
  • Ricardo Manuel Simões Bayão Horta (in the capacity of Chairman of the Executive Committee)
  • Vicente Árias Mosquera
  • Jorge Humberto Correia Tomé

The Committee meets whenever necessary and, in principle, at least once every quarter. It can call on external consultants specialised in areas duly justified, at the Company's expense.

II.1.4.4. Strategy and Investment Committee

The Board of Directors' Regulations further envisages in article 21(2) the establishment of a Strategy and Investment Committee, comprising the Chairman of the Board of Directors, the Chairman of the Executive Committee (both in compliance with the duties inherent to the office) and three to five non-executive directors.

This Committee is responsible for assisting the Board of Directors in the following areas, with the aim of optimising the process of defining, carrying out and assessing the strategy of the CIMPOR Group:

  • The sustained internationalisation of the Group;
  • The diversification of its businesses and investment and sale of strategic assets;
  • Drawing up multi-year strategic plans, in accordance with the Group's objectives;
  • Defining the strategy and policies for the growth and development of the Company.

It is further responsible for assisting the Executive Committee to define the operational organisation of the Group, particularly given its size and geographical dispersal.

The members of this Committee have yet to be appointed, and so it has not begun to operate.

Organisational Structure CIMPOR Group

II.2. Organisational Structure

II.2.1. CIMPOR Group

The CIMPOR Group is organized into business areas which correspond to the countries where the Group operates. These business areas are in turn grouped in major regions, which are currently: (i) the Iberian Peninsula; (ii) the Mediterranean Basin; (iii) Latin America; (iv) Southern Africa; and (v) Asia. The various activities in each Business Area are grouped by product, and the core business is the manufacture and sale of cement.

As the holding company for the Group, CIMPOR - Cimentos de Portugal, SGPS, S.A. is responsible for its strategic development – as regards the whole internationalization process – and for overall management of the different business areas, ensuring coordination of the financial, technical, human and other resources in harmony with the criteria and guidelines that, according to the Group's main goals, are set forth in the strategic plan, which is revised and approved annually by the Board of Directors.

More thorough monitoring of the management of the different business areas is ensured by CIMPOR Portugal, SGPS, S.A., for activities in Portugal, and by CIMPOR Inversiones, S.A., a subholding based in Spain, for all the others. This company was set up in 2002 to be the Group's launch-pad for expansion abroad.

Each of the abovementioned regions has a "zone manager", except for the Iberian Peninsula where, because of the size and diversity of its operations, such a role does not exist. This manager sits on the Board of Directors of the companies in the respective business areas and reports directly to the Board of Directors of CIMPOR Inversiones, S.A..

The Board of Directors of CIMPOR Inversiones, S.A. is composed of four of the five members of the Executive Committee of the Board of Directors of the holding - Luís Filipe Sequeira Martins, Manuel Luís Barata de Faria Blanc, António Carlos de Morais Varela and Luís Miguel da Silveira Ribeiro Vaz. All of those directors, except for António Varela, are also members of the management bodies of the sub-holdings responsible for coordinating the activities of the Group in Portugal and Spain - CIMPOR Portugal, SGPS, S.A. and Corporación Noroeste, S.A., respectively.

The responsibilities for monitoring the Group's different operational areas, without prejudice to the collective performance of the duties delegated to the Executive Committee, are distributed as follows:

  • External Relations and Communication Ricardo Bayão Horta;
  • Cement Activity, Engineering and Technical Services of support to the Group (Cimpor Tec), Human Resources and Occupational Health and Safety (Group) – Luís Filipe Sequeira Martins;

  • Strategy and Development, Mergers and Acquisitions, Management Planning and Control, Internal Auditing and Legal Matters – Manuel de Faria Blanc;

  • Financial Operations, Investor Relations, Accounting, Consolidation and Tax Matters, Insurance and Real Estate – António Varela;
  • "Concrete and Aggregate", "Mortar" and "Prefabricated Parts" activities, Trading e Shipping, Information Technology, Logistics and Occupational Health and Safety (Head Office) – Luís Ribeiro Vaz.

The corporate organisation model for each business area is that considered to be best suited for each context, given the business' characteristics and conditions and the country's legal system. The aim is to take advantage of possible synergies and benefit from more favourable financial and tax frameworks.

Each business area is autonomously managed, particularly in day-to-day and operational management matters, according to a planning and control system steered by the holding company. This system's strategic guidelines, business and investment plans and targets and annual budgets are defined through participation and interaction, subject to periodic review and control. The policy concerning the management composition for each business area is that both local nationals and other Group personnel are appointed, so as to ensure multicultural management.

In companies that are directly or indirectly dependent on CIMPOR - Cimentos de Portugal, SGPS, S.A., the most important decisions - e.g. those that exceed specific values or that have greater impact on profits or on the Group's strategic development - must be approved or ratified by the board of the holding company. This also applies to decisions or actions that, when dealt with at Group level, enable significant synergies to be generated.

II.2.2. CIMPOR Holding

In order to perform its role properly, CIMPOR has functional structures supporting the Group's management and the management of each business area, as shown in the following diagram.

The main functions of the Corporate Centre are: (i) to contribute to the achievement of the Group's international development strategy, guaranteeing the procedures leading to the acquisition of companies in the different markets to which the group intends to expand its operations; (ii) to ensure, through the Investor Relations Office, regular communication with players in the capital market, namely shareholders, regulators and other public authorities, financial analysts and fund managers and other collective investment bodies; and (iii) in the Financial Operations area, to ensure access under the best conditions to the financial resources necessary for the Group's expansion and its day-to-day operations.

The External Relations and Communication Department ensures implementation of the Group's communication and image policies.

The Internal Audit Department is responsible for conducting and coordinating financial, asset and operational audits throughout the Group by examining and assessing the adequacy and effectiveness of the internal control systems and the quality of their performance.

Set up following the inclusion of occupational health and safety among the CIMPOR Group's critical business values and as one of the priority targets of its operational strategy, the mission of the Health and Safety Advisory Office embraces: (i) proposing guidelines that the policy adopted should follow, the goals to be achieved and the management system to be used; (ii) galvanizing its implementation; (iii) coordinating the activities in question in functional terms, on a Group-wide basis; and (iv) supervising its implementation and assessing the results.

II.2.3. Shared Services

The harmonization and standardization of processes and practices which enhance Group culture and improve the quality, flow and reliability of decision-making information, have long been an important pillar of the CIMPOR Group's global policy.

At the start of 2004, after the "Shared Services" company - "CIMPOR - Serviços de Apoio à Gestão de Empresas, S.A. (CIMPOR Serviços) - was founded, a series of non-core business processes/functions that had been scattered throughout the Group holding company, the CIMPOR Portugal sub-holding and the operating companies themselves were transferred to CIMPOR Serviços.

CIMPOR Serviços provides management, consultancy and advisory services to all Group companies, particularly those with head offices in Portugal. Its current organizational structure is shown in the diagram below.

The Planning and Control Department coordinates and executes the entire process of preparing and controlling the plans and budgets of the different business areas and companies with head offices in Portugal.

The Information Systems Department ensures the management and development of the information systems and technologies used by the Group.

The Accounting, Consolidation and Tax Department is responsible for: (i) promoting and carrying out the entire financial consolidation process; (ii) defining the Group's accounting principles and policies, and coordinating and supporting their implementation; (iii) preparing and undertaking the accounting functions of the companies with head offices in Portugal; and (iv) carrying out the Group's tax planning and ensuring that these companies fully comply with their tax obligations.

The Personnel Department, besides providing human resource policy implementation support to the Group's different business areas, implements the human resources policy in Portugal, striving to ensure the best use for the available skills and development of these resources to a degree that maximizes employee performance and contributes to employees' personal and professional accomplishment. This department is also responsible for managing personnel matters in Group companies with head offices in Portugal, on the basis of service provision contracts entered into with such companies.

Group companies can also enter into such contracts with the Financial Department to provide services regarding their receivables, payables and treasury processes and the monitoring and control of their financial management.

The Logistics Department manages the physical spaces of companies belonging to the Group with head offices in Lisbon (Rua Alexandre Herculano and Prior Velho), and also provides them with administrative support services in the purchasing and stationery, travel and accommodation, communications and archiving fields. It also offers advisory services on organizational development and administrative support to vehicle management and the contracting of industrial accident insurance for the set of companies included in the Portugal business area. It further manages and controls the Group's asset risks, guaranteeing that such risks are duly covered by insurance contracts that are appropriate to the underlying risks of the Group's business.

The mission of the Customer Support Department is to ensure liaison between the various components of the Shared Services Centre and the companies served - fostering continued improvement in the quality of the services rendered and higher company-customer satisfaction levels. It is also responsible for providing any support required by the respective governing bodies, particularly in legal matters.

II.2.4. Cimpor Tec

The need to strengthen the Group's technical and technological culture led to the Board of Directors deciding, at the end of 2004, to transfer the Technical and Industrial Development Centre of the holding company and the Central Laboratory of CIMPOR - Indústria de Cimentos, S.A., to a new company then founded: CIMPOR TEC – Engenharia e Serviços Técnicos de Apoio ao Grupo, S.A. The business started-up on 1 January 2005, with the following core mission:

  • Provide technical and technological assistance to the different Group companies, especially those in the cement sector, with a view to improving their operating performance, governed by principles of Sustainable Development;
  • Ensure technical and financial excellence of the Group's industrial investments in that sector;
  • Promote new initiatives common to all Group companies, especially staff training initiatives, with the underlying aim of achieving the technical progress of cement production and sales;
  • Provide technical advice in assessing the financial aspects of any opportunities to acquire cement production assets and in defining the targets to be achieved;
  • Ensure that all the Group's companies are aware of, and use, the know-how that is available in each company or which may be accessed externally.

The Company's organization is broken down into three major segments of activity, as shown in the diagram below:

  • CIMPOR Performance Program developing and implementing performance management tools in the operational, process engineering, environmental, geological and raw material fields;
  • Investments, Engineering, Equipment and Safety covering investment and project management, automation and control, equipment and maintenance management and occupational health and safety;
  • Products & Quality / Technical Training which, in addition to acting in the areas mentioned in its designation, includes the Central Laboratory and R&D.

II.3. Internal Control and Risk Management

At the holding company level, in addition to the Corporate Centre – with responsibilities that include financial risk management – the Group also possesses an Internal Audit Department which monitors the adequacy and effectiveness of the internal control systems in all the Group's areas, and ensures the good performance of those systems.

The functions of this Department are:

  • To carry out financial, administrative and asset audits,
  • endorsing the results according to the established strategy and goals;
  • examining and ensuring compliance with established policies and plans and the applicable procedures, laws and regulations;
  • verifying the powers and responsibilities established within the Group and their level of formalization;
  • monitoring the development or alterations to operations, programmes, systems and controls;
  • verifying the ownership, physical existence and valuation criteria of assets;
  • To carry out operational audit tasks (particularly in the areas of marketing, production, investment, upkeep and personnel),
  • evaluating the level of respective management control;

  • recommending any corrective measures deemed necessary;

  • ascertaining whether reported deficiencies have been duly corrected;
  • To audit the computer system,
  • assessing the reliability and integrity of the information and the various means used to identify, process and disclose it;
  • analysing the existing information systems in terms of their security, basic programmed controls and update of user manuals.

Risk management in the CIMPOR Group begins with the main operating companies, which identify, measure and analyse the different risks to which they are exposed. Particular emphasis is given to operating and market risk (business-volume risk), with estimates being made of the probability of occurrence of the various factors underlying the risks and their potential impact on the Company's business or the activity in question.

The operating managers are responsible for designing and implementing the most suitable risk control mechanisms. The efficiency of such mechanisms is periodically evaluated by the holding company, through the Internal Audit Department under an annual plan for auditing financial areas and information systems, and verifying processes and conformity with approved procedures.

The main goal in relation to the holding company is to obtain an overall picture of the risks faced by the Group in each of its different activities and business areas and to ensure that the resulting risk profile is consistent with the Group's global strategy, particularly in relation to the level of risk deemed acceptable, given the Group's capital structure. In other words, in harmony with the policy defined by the Board of Directors: to combine the constant search for business opportunities that can make a positive contribution to the value creation process with a level of risk that, in terms of CIMPOR's long-term rating, does not jeopardize its current investment grade.

The Directors' Report includes a chapter describing the policies for financial and asset risk management, guaranteed for the holding by the Corporate Centre and for CIMPOR Serviços by the Logistics Department. The Group's policy in regard to financial risks of a more general nature and not subject to specific coverage is steered towards the geographical diversification of its expansion-generating investments, so as to balance CIMPOR's presence in mature and emerging markets and foster business operations at different stages of development. Hence, potential acquisition targets are not only defined taking into account the need to maintain a balanced and geographically diverse business portfolio, but also the assets to be acquired are assessed on a case-by-case basis, incorporating risk premiums that are appropriate to the specific situation of each deal and each country.

CIMPOR deems its internal control system to be effective in detecting risks associated to its business activity, in safeguarding its assets and benefiting the transparency of its corporate governance, fully complying with CMVM recommendation II.1.1.2.

II.4. Remuneration

II.4.1. Remuneration Committee

The members of the Remuneration Committee provided for in article 16 of the articles of association, up to 13 May 2009, were:

  • Pedro Pereira Coutinho Teixeira Duarte
  • Banco Comercial Português, represented by Filipe de Jesus Pinhal
  • António Carlos Calaínho de Azevedo Teixeira Duarte

Following that date, the Remuneration Committee elected for a four-year term from 2009 to 2012 at the General Meeting then held (which was attended by Filipe de Jesus Pinhal, in accordance with recommendation II.1.5.3) had the following members (all independent in the light of the criteria established in section II.19 of the Annex to CMVM Regulation no. 1/2007):

  • Manuel Soares Pinto Barbosa (Chairman)
  • Filipe de Jesus Pinhal
  • José de Melo Torres Campos

This Committee met 3 times during 2009 and the minutes of the meetings were drawn up (see CMVM recommendation II.5.3).

II.4.2. Remuneration Policy and Disclosure of Remunerations

The remuneration of the members of the Company's Board of Directors, and its form and mode of payment as well as its respective supplementary retirement or disability pension scheme, are determined by the Remuneration Committee, elected by the General Meeting. Such remuneration may include a variable component based on the year's profit, but this may not in total exceed 5% of the profit, pursuant to Article 16(6) of the articles of association.

The fixed annual remuneration of the members of the Board of Directors is established by the Committee on the basis of the following principles:

  • a) Adequacy of the remuneration in relation to market standards;
  • b) The appreciation in value of the services rendered, the level of responsibility undertaken and the degree of dedication expected;

c) Award of a supplementary pension scheme (PPR) to directors with executive duties, to which monthly contributions of 12.5% of their respective fixed remuneration are made.

In addition, all directors benefit, by decision of the Remuneration Committee, from the "Employee Stock Purchase Plan", as described in section III.5.1 below, and pursuant to the terms established therein.

The variable remuneration (including the granting of share options) is limited to members of the Executive Committee and it is determined annually on an individual basis by the Remuneration Committee according to the Group's profit (complying with the statutory limits mentioned above), the extent to which the defined strategic goals were met and the appraisal of each director's performance in their specific area of operation.

Said Committee awarded the members of the Executive Committee in 2009, based on those criteria, a total of EUR 1,625,000 in bonuses, equivalent to around 0.74% of the Group's net income (after minority interests) and to 1.06% of the Company's net profit, on an individual basis.

Share options are granted in accordance with the rules of the overall programme, as set forth in section III.5.2 below. The fact that the exercise of the options is spread out over time (four-year period) not only defers a large part of the corresponding benefit but also makes such options depend on the Group's medium to long term performance and the sustainability of its profits.

Accordingly, the remuneration of the members of CIMPOR's management body is structured so as to permit the alignment of their interests with the Company's interests, pursuant to CMVM recommendation II.1.5.1.

Series
2006 2007 2008 2009 Total
Exercise Price (euros) 4.05 4.90 4.25 2.85
Options Awarded
Initial Options 137,500 137,500
Derivative Options 412,500 412,500
Exercisable Options 125.000 135,000 137,500 137,500 535,000
Exercised Options 135,000 135,000
Extinguished Options
Exercisable in 2009
Due to non-exercise of Initial Options 2,500 2,500
Due to non-exercise of Derivative Options 125,000 135,000 137,500 397,500
Exercisable from 2010 to 2012, inclusive * 7,500 7,500

In relation to the executive directors, the number of options granted, exercised and extinguished in 2009 was:

* Due to non-exercise of Initial Options

Options Exercisable in:
Series 2010 2011 2012 Total
2007 135,000 ‐‐‐ ‐‐‐ 135,000
2008 137,500 137,500 ‐‐‐ 275,000
2009 135,000 135,000 135,000 405,000
Total 407,500 272,500 135,000 815,000

A total of 815,000 options were still to be exercised at the year's end, broken down as follows:

In accordance with Article 16(3) of the articles of association a lifetime retirement pension may also be granted to directors who have left office, provided the following prerequisites are met:

  • a) They have been executive directors for more than ten years, continuously or with interruptions;
  • b) They have maintained an employment contract with or performed administrative duties for the Company or dependent companies for over twenty-five years, continuously or with interruptions.

The amount of the pension is determined on the basis of the time and the relevance of the services rendered and the beneficiary's circumstances and may be reviewed annually. This amount, set in accordance with these criteria, may never exceed the highest value of the remuneration set at any time for the directors in office, is established by and may be subject to additional terms and conditions determined by the General Meeting or the Remuneration Committee, if there is one, and may take the form of a contract.

This provision of the articles of association has not yet been applied.

As at 31 December 2009, the total value of remunerations, contributions to the supplementary retirement or disability pensions scheme and other incentives earned by members of the Company's board of directors (including the difference between the purchase price of the shares acquired under the "Stock Purchase Plan" and the "Stock Option Plan" and their market price on the date of purchase) was as follows:

(amounts in euros) Fixed Variable Total
Remuneration Remuneration Remunerations
Executive directors 1,465,689.94 1,895,405.00 3,361,094.94
Non-executive directors 681,921.43 0.00 681,921.43
Total 2,147,611.37 1,895,405.00 4,043,016.37

In compliance with article 3 of Law no. 28/2009 of 19 June, the annual amount of remuneration earned by the members of the Board of Directors is individually disclosed in Annex II to this Report.

The members of the Board of Directors did not earn any other remuneration whatsoever from other companies in a group or control relationship with CIMPOR – Cimentos de Portugal, SGPS, S.A., nor any significant non-monetary benefits that may be considered remuneration.

The same stands true for the members of the Audit Board. The remuneration of this Board is also determined by the Remuneration Committee and it solely has a fixed component, which amounted to EUR 124,022.50 in 2009, broken down as follows:

Ricardo Minotti da Cruz Filipe 52,100.00
Luis Black Freire d'Andrade 35,662.50
J. Bastos, C. Sousa Góis & Associados, SROC, Lda. 22,470.00
Jaime de Macedo Santos Bastos 13,790.00

II.5. Irregularities' Reporting Policy

In 2006 the Board of Directors approved and disclosed to all Group employees, through the internal communication network - CIMPORnet - and notices in the workplace, a set of in-house rules and procedures on how the communication of alleged irregularities occurring in CIMPOR Group companies are to be received, recorded and dealt with. These rules and procedures respect the legal and regulatory provisions, the recommendations that apply at any given time (namely CMVM recommendation II.1.4.1) and the rules and principles set down in the Code of Ethics adopted by the Group.

The new Regulations have established a system for such reporting which is designed to be effective, quick and capable of detecting, investigating and resolving situations, while respecting the highest ethical principles – in particular the principles of integrity and responsibility – as well as the rules of confidentiality and non-retaliation, thereby safeguarding relations with the persons involved.

It is important to clarify, for the purposes of CMVM recommendation II.1.4.2 that, pursuant to and for the purposes of these Regulations, in accordance with Article 2(2) therein, "irregularity" is taken to be "any fraudulent or negligent act or omission, contrary to legal or regulatory provisions, the Articles of Association or the rules or ethical principles of the Group", which can be imputed to any member of the governing body or any other employee of the CIMPOR Group.

The means by which reports are made, the persons to whom they should be addressed and way in which they are handled are duly set forth in the Regulations, and the Internal Audit Department of the holding company shall, without prejudice to the powers of the Corporate Governance, Sustainability and Social Responsibility Committee, oversee and monitor the entire system, with special reference to levels of adequacy and effectiveness.

Attention is drawn to the explicit guarantee in the Regulations that each and every communication made by an employee under the terms and conditions set forth therein shall be treated in confidence and anonymously, particularly in relation to the identity of the person reporting the irregularity (unless the latter expressly and unequivocally requests otherwise).

Provided that he/she is acting in good faith, the guarantee is given this person that he/she will not be subject to any kind of prejudicial treatment, retaliation, discrimination, threat or sanction by CIMPOR. But if the conduct of the person reporting fails to respect these principles, he/she may be found to have committed an offence which may be subject to disciplinary action appropriate and proportional to the offence, in addition to any civil and/or criminal liability which may arise from his/her conduct.

II.6. Codes of Conduct of the Governing Bodies

In addition to the legal provisions applicable to companies, to corporations open to investment by the public and to the stock markets, the Company's culture and practice stresses the rules of good conduct in the event of a conflict of interest arising between members of the governing bodies and the Company, and the principal obligations resulting from the duties of diligence, loyalty and confidentiality of the members of the governing body, with special reference to the improper use of Company property and business opportunities.

This culture is ingrained in article 4 of the Board of Directors Regulation (available on CIMPOR's website, www.cimpor.pt, in accordance with CMVM recommendation II.1.1.3), according to which criteria and interests that must govern the actions of this body are the maximisation of the worth of the Company and the CIMPOR Group, and pursuit of the Company's best interests, considering not only the shareholders' long-term interests but also those of other stakeholders with making a significant contribution to the sustainability of CIMPOR, such as its workers, customers and creditors. To that end, the Board of Directors adopts the basic concept of sustainable development and the best economic, social and environmental practices, ensuring strict compliance with law, the principles of good faith and high ethical standards of integrity, loyalty, honesty and responsibility.

These Regulations particularly enshrine the following fundamental duties of the members of the Board of Directors:

  • The duties of caution, availability, technical competence, and knowledge of the Company's and Group's business;
  • The duties of assiduousness, loyalty and confidentiality.

The Regulations of the Company's Audit Board (available on CIMPOR's website www.cimpor.pt, in accordance with CMVM recommendation II.1.1.3) enshrine a set of duties in terms of conduct to be complied with by this body in the performance of its supervisory duties.

Even though the Board of Directors has always taken care to apply these principles in all of the Group's companies, it was deemed useful to codify a set of rules on these and other matters that are especially relevant to the Group's business. A Code of Ethics was therefore approved and published internally (available at www.cimpor.com) so as to specifically regulate these matters and formalize the observance by all the Group's employees with high standards of conduct in their respective functions.

The Company's Code of Ethics fully complies with the Portuguese standard (NP 4460-1/2007) on ethics in organisations.

III. INFORMATION

III.1. Share Capital and Shareholder Structure

The share capital of CIMPOR currently stands at 672 million euros, and it is fully paid up. (Registered and ordinary) shares number 672 million, (each with a par value of one euro), and are traded on Lisbon Euronext.

Characteristics of CIMPOR Securities
Title: CIMPOR – Cimentos de Portugal, SGPS, S.A.
Share Trading: Euronext Lisbon
Futures trading: Euronext Lisbon
Codes:
LISBON TRADING: CPR
REUTERS: CMPR.IN
BLOOMBERG: CPR PL
Number of shares (with a par value of 1 euro):
Total – 672,000,000
Listed for trading – 672,000,000

According to the Information on Qualifying Holdings received by the Company by 31 December 2009, and in compliance with the rules of imputing voting rights established in the Portuguese Securities' Code, the holders of shares were, on that date, as follows:

Number % of
Shareholders of Share
Shares Capital
Teixeira Duarte, SGPS, S.A. 153,096,575 22.78%
Manuel Fino, SGPS, S.A. 71,735,460 10.67%
Grupo Lafarge 116,089,705 17.28%
Banco Comercial Português, S.A. (1) 67,474,186 10.04%
Caixa Geral de Depósitos, S.A. (1) 64,669,794 9.62%
Bipadosa, S.A. 43,401,650 6.46%
Ten. Coronel Luís Augusto da Silva 26,814,238 3.99%

(1) Including Pensions Fund

The shareholder structure of CIMPOR has undergone significant change in 2010, and the group of shareholders with a shareholding greater than 2% of the Company's share capital, according to the Disclosures of Qualifying Holdings received by the Company by the end of the first quarter, was now:

Number % of
Shareholders of Share
Shares Capital
Camargo Corrêa, S.A. 192,374,750 28.63% (1)
Votorantim Cimentos, S.A. 142,492,130 21.20% (2)
Manuel Fino, SGPS, S.A. 71,735,960 10.67% (3)
Banco Comercial Português, S.A. (4) 67,474,186 10.04%
Caixa Geral de Depósitos, S.A. (4) 64,726,659 9.63% (2)

(1) Including 6.46% of the share capital of the company whose acquisition process to Atlansider, SGPS, S.A. will be concluded in April 12, 2010 as of market information issued in March 31, 2010.

(2) In accordance with the shareholders' agreement concluded between Votorantim Cimentos, S.A. and Caixa Geral de Depósitos, S.A., in accordance with the market information issued on 4, 5 and 17 February 2010, a total of 207,218,789 shares, corresponding to 30.84% of the share capital of the Company is attributable to any of these two entities.

(3) In accordance with the market information issued on 15 January 2010, Manuel Fino, SGPS, S.A., through its subsidiary Investifino – Investimentos e Participações, SGPS, S.A., holds an option to buy 64,406,000 CIMPOR shares (currently held by Caixa Geral de Depósitos, S.A.), therefore a total of 136,141,960 shares corresponding to 20.26% of the share capital of the Company is attributable to it.

(4) Including pension funds

No shareholder of CIMPOR holds any special rights and all the shares representing the Company's share capital can be freely traded on a regulated market, and no system of employee participation in the share capital is envisaged.

According to the information to the market issued on 3, 5 and 9 February 2010, Caixa Geral de Depósitos, S.A. and Votorantim Cimentos, S.A. concluded, on the first of those dates, a shareholders' agreement concerning their relations as shareholders of CIMPOR, with the intention of "establishing between them a minority shareholders block, representing less than one-third of the voting rights of CIMPOR, which is cohesive and stable and contributes to shareholder stability in CIMPOR, the sustained development of the company and the continued independence of its business, structure and corporate culture, particularly as a listed company, with head office in Portugal, and the preservation of a financial situation likely to generate an investment grade rating". The parties intend to achieve this by "undertaking reciprocal obligations in regards to the exercise of their voting rights (voting syndicate), maintaining their equity holdings in CIMPOR (lock up and stand still) and taking on restrictions as regards the sale of their equity interests (right of first refusal)", for an initial period of ten years.

At 31 December 2008, CIMPOR held 8,476,832 own shares in portfolio. During 2009 it disposed of 502,245 shares to its employees at an average price of around 2.994 euros, under the stock purchase and stock option plans referred to in section III.5. below.

Date No. Shares Price (EUR) Note
14 May 175,345 3.263 (1)
1 June 326,900 2.850 (2)
(1)
Stock Purchase Plan (2009)

(2) Stock Option Plan (2009)

As no shares were purchased in 2009, the number of treasury shares in the portfolio at the end of the year was 7,974,587, corresponding to 1.19% of the Company's share capital.

III.2. Amendments to the Articles of Association

The articles of association can be amended pursuant to the provisions established in law and according to the rules defined in the articles of association proper (Article 8).

  • So that the General Meeting may take a decision to amend the articles of association on its first notice to convene, the shareholders attending or represented at the Meeting must hold at least one-third of the share capital; and
  • Decisions to amend the articles of association have to be approved by a minimum of twothirds of the votes cast, irrespective of whether the General Meeting is convened at the first call or the second call, unless, in the latter case, the shareholders attending or represented at the Meeting hold at least half of the share capital, in which event such decisions may be approved by simple majority of the votes cast.

III.3. Stock Market Performance of CIMPOR shares

Following the heavy fall in price in 2008, the stock markets started 2009 still in decline. This trend was reversed at the start of March and the markets ended the year in undoubtedly positive terrain: the Euronext 100 index grew 25.5% over the year while the main index of the Lisbon stock exchange (PSI20) increased 33.5% on the end of the preceding year (this was its best performance of the last twelve years).

The CIMPOR share price underwent notable recovery after reaching a low of 3.00 euros on 28 February. This recovery even surpassed that of the PSI20 index and the share price rose even more sharply after the preliminary announcement on 18 December of the launch of the takeover bid at the price of 5.75 euros, by the Brazil registered company Companhia Siderúrgica Nacional (CSN). Thus, the CIMPOR share price, after having recorded a high of 6.55 euros on 28 December, ended 2009 at 6.429 euros, 84.7% above the closing price at the end of 2008.

2009 2008
Share Capital (103
euros)
672,000 672,000
Number of shares (1)
Total 672,000,000 672,000,000
Treasury Shares 7,974,587 8,476,832
Share price (euros)
High 6.550 6.200
Low 3.000 3.038
Year end 6.429 3.480
Market capitalisation (103
euros) (1)
4,320,288 2,338,560
Gross dividend / share (euros) (2) 0.20 0.185
Dividend yield (2) (3) 3.11% 5.32%
Net income after M.I. (103
euros)
237,025 219,441
Payout ratio (2) 56.7% 56.7%
Transactions
By volume (1,000 shares) 204,269 283,551
By value (106
euros)
991 1,404
Market share 3.1% 2.6%
Annual Growth of Value
Euronext 100 25.5% ‐ 45.2%
PSI 20 33.5% ‐ 51.3%
CIMPOR shares 84.7% ‐ 42.7%

(1) On 31 December

(2) In 2009: in accordance with proposal to be presented to General Meeting

(3) Relative to share price as year's end.

The referred to takeover bid – which had to acquire shares equivalent to half the share capital plus one share in order to be successful – was revised in 2010 and the offer price raised to 6.18 euros and the threshold for success lowered to one-third of the share capital plus one share. The takeover bid ended unsuccessfully on 22 February 2010.

Despite the fact that the preliminary announcement of the takeover bid led to a considerable increase of the number of shares traded at the end of the year, the overall value of shares traded in 2009, which was approximately one billion euros, corresponding to little more than 204 million shares, was around 29% below that recorded in 2008. Nevertheless, and despite the fall (more than 40%) in the total value of shares traded on the Euronext Lisbon market, the market share of CIMPOR shares rose from 2.6% to 3.1%.

The dividends for 2008 were paid on 12 June. The gross dividend amounted to 0.185 euros/share (0.148 euros in net terms), representing a decrease of almost 20% on the dividend paid in the previous year and gross earnings per share by shareholders of around 3.8% on the dividend payment date.

III.4. Dividend Distribution Policy

The Board of Directors of CIMPOR intends to maintain a divided distribution policy that takes into account:

  • the desirable stability of the payout ratio;
  • the competitiveness of the dividend yield in the context of the Portuguese market and the international cement market;
  • the Group's future investment prospects, analyzed from the perspective of financing needs through equity and the capacity of the varied business operations to generate cash flow.

The proposed allocation of the profits declared in the management report and relating to the individual activity of CIMPOR follows the policy guidelines set forth above, and the proposed dividend of 0.20 euros amounts to around 56.7% of the Group's net profit.

III.5. Stock Award and Stock Option Plans

The Annual General meeting of CIMPOR held on 13 May 2009 decided, in relation to the Group's employee remuneration and incentive policy, and with a view to better alignment of employees' interests with the underlying goal of creating shareholder value, as in previous years and as proposed by the Board of Directors, to give employees the opportunity to invest in the company under advantageous terms. Such investment is likely to assist employees to better integrate the long-term goals of the Company and its shareholders.

Therefore, the sale of own shares to employees and board members of the Company and subsidiaries was approved, under a new Employee Stock Purchase Plan and under the "2009 Series" of the Stock Option Plan for the Group's directors and senior management, the regulations for which were established in 2002 (with minor changes introduced in March 2004) by the Remuneration Committee.

As in previous years, and in accordance with CMVM recommendation II.1.5.4, this approval by the General Meeting made explicit reference to the grounds for adopting the plans, and the resolution taken contained a summary of the essential characteristics of the approved plans including the prerequisites for awarding the options, the criteria for setting the price of the shares or for exercising the options (determined in relation to the listed share price at specific times) the periods in which the options may be exercised, and the granting of powers to the Board to execute or modify the plans. The proposals of the Board of Directors thus include all the elements needed for the correct evaluation of the plans, in line with the respective regulations.

III.5.1. Employee Stock Purchase Plan for 2009

This Plan is aimed at the directors and personnel with a stable labour relationship with CIMPOR or with companies with head offices in the Iberian Peninsula directly or indirectly controlled by CIMPOR - Cimentos de Portugal, SGPS, S.A., the directors and managers of the other Group companies (proposed by managers of the respective areas for that purpose) and other personnel (indicated for that purpose by the Executive Committee), contracted by companies in which the holding company or any company controlled by it has a shareholding. The Employee Stock Purchase Plan (for 2009) consisted of awarding each beneficiary - as decided by the Remuneration Committee with regard to the Directors of the holding company, and as decided by the Executive Committee in all other cases - the right to acquire a specific number of CIMPOR shares at 75% of the closing stock market price (rounded up) on the transaction date, and defined as follows:

Maximum number of shares to purchase = Gross monthly basic remuneration / 2

75% of closing market share price on transaction date

rounded down to the nearest multiple of five or ten shares, depending on whether the above formula results in fewer or more than 100 shares, respectively.

Of the 2,532 employees eligible to purchase CIMPOR shares according to this rule, 398 employees responded affirmatively (347 in Portugal and 51 in Spain) within the given timeframe (9 to 24 April). A total of 175,345 shares at a price of 3.263 euros per share were acquired.

III.5.2. CIMPOR Stock Option Plan for the Group's Directors and Management – 2009 Series

The Stock Option Plan - 2009 Series applied to the Directors of the holding company who the Remuneration Committee decided to name as beneficiaries and the members of the Boards of Directors of subsidiaries and other Group personnel designated to that end by the Executive Committee.

As mentioned in the decision of the Annual General Meeting of 13 May 2009, the essential features of this plan (with the amendments made by the Remuneration Committee in March 2004) are as follows:

  • Every year each beneficiary is granted the right to acquire a specific number of CIMPOR shares (initial options) at a price determined by the Remuneration Committee (within thirty days of the Annual General Meeting having approved the accounts), the price being no less than seventy-five percent of the average closing price of the shares on the sixty stock market sessions immediately prior to that date;
  • For each share acquired through the exercise of an initial option, the beneficiary is granted the option to acquire a new share (derivative option) for the same unit price in each of the subsequent three years. The shares acquired by exercising the initial options and the corresponding derivative options comprise a "series";
  • The number of initial options assigned to each beneficiary is determined by the Remuneration Committee for members of the Board of Directors of the holding company and by the Executive Committee in all other cases;
  • The number of derivative options each beneficiary can exercise every year cannot exceed in total the number of shares held by the beneficiary on 28 February of that year, regardless of whether or not they were acquired under this Plan;
  • The period during which the initial options can be exercised is determined by the Executive Committee, while derivative options are always exercised in March of each year;
  • The shares acquired in this way are not subject to any clause restricting their sale, contrary to the options, which cannot be transferred by transaction between living persons (should the beneficiary die, only the right to settle the respective options is transferred to the heirs, which effectively means entitlement to receive the difference in value between the price of exercising the option and the market price of the shares on the

date of death);

• The plan and respective regulations may be revoked or changed at any time, by decision of the Remuneration Committee, without loss of the options already acquired.

339,000 initial options were granted to 202 Group Directors and managers in 2009 under this plan, during an exercise period running from 15 to 20 May. 190 of these exercised part or all of their options, at the price of 2.85 euros per share, acquiring a total of 326,900 shares.

Thus, in 2010 to 2012 inclusive, a maximum of 980,700 derivative options of this series may be exercised at the same price per share.

III.5.3. Options Granted, Exercised and Extinguished

On the date of exercise of the derivative options corresponding to the 2006, 2007 and 2008 series none of those options (totalling 748,790) were exercised due to the market price of CIMPOR shares being lower than the respective exercise prices. A further 200 derivative options of the 2007 series (maturing in 2010) were also extinguished due to the resignation of the holder of those options.

Series
2006 2007 2008 2009 Total
Exercise Price (euros) 4.05 4.90 4.25 2.85
Options Granted
Initial Options 339,000 339,000
Derivative Options 1,017,000 1,017,000
Total 1,356,000 1,356,000
Exercisable Options 246,250 238,450 264,090 339,000 1,087,790
Exercised Options 326,900 326,900
Extinguished Options
Exercisable in 2009
Due to non-exercise of Initial options 12,100 12,100
Due to non-exercise of Derivative options 246,250 238,450 264,090 748,790
Exercisable in 2010 to 2012
Due to non-exercise of Initial options 36,300 36,300
For other reasons 200 200
Total 246,250 238,650 264,090 48,400 797,390

To summarize the situation for 2009:

Therefore, while the number of shares needed at the beginning of the year to meet the exercise of options granted up to 2008, inclusive, rose to 1,515,420, the number of shares needed at the end of the year to meet the exercise of all the options granted in the meantime was 1,747,130, broken down as follows:

Options Exercisable in:
Series 2010 2011 2012 Total
2007 238,250 238,250
2008 264,090 264,090 528,180
2009 326,900 326,900 326,900 980,700
Total 829,240 590,990 326,900 1,747,130

III.6. Business and Transactions between the Company and Members of its Management and Supervisory Bodies, Shareholders of Qualifying Holdings or Companies with which it is in a Control or Group Relationship

CIMPOR concluded an Agreement in Principle with Teixeira Duarte – Engenharia e Construções, S.A. on 28 April 2009, with the aim of terminating their joint ownership of the company C+PA – Cimento e Produtos Associados, S.A. through the division of the assets held by this company following a legal framework to the defined. ING Bank N.V. was hired to make an independent evaluation of the referred to company and each of its assets as well as to issue a fairness opinion on the transactions in question.

The implementation of that Agreement established the negotiation and conclusion of the necessary binding contractual instruments in the period of three months as well as obtaining all the necessary legal authorisations or permission, particularly those from third parties. Since such was not possible within the aforementioned time period, CIMPOR proposed the extension of the period for a further three months, but Teixeira Duarte – Engenharia e Construções, S.A. considered the agreement to have expired and did not agree to such as extension.

It was not possible, however, to find a solution that satisfied both parties, despite all efforts that were subsequently made to reach a new agreement that met with the interests of third parties involved in the negotiations and guaranteed compliance with the guiding principles of the Agreement signed in April.

Apart from the sale of own shares under the stock purchase and stock option plans referred to in sections II.4.3 and III.5 above, neither the Company nor any of the companies it controls has undertaken any business or operation with any members of its management and auditing bodies, holders of qualified shareholdings or companies that are in a group or control relationship with these, with the exception of some transactions of no financial significance to any of the parties involved, and which were conducted under normal market conditions for similar operations and executed as part of the CIMPOR Group's regular business activity.

III.7. Investor Relations Office

In order to maintain a close relationship with the stock market, CIMPOR has had an Investor Relations Office since it was first listed in 1994. This office is responsible for informing the financial community about the evolution of the Group's business and for supporting current and potential shareholders in CIMPOR in their relations with the Company, in full compliance with the principle of equal treatment of shareholders and with CMVM recommendation III.1.2.

In addition to information which might influence the price of shares, which is made available through the CMVM site (www.cmvm.pt), this office's contact with private and institutional investors, fund managers and other collective investment bodies, analysts and other stock market operators is maintained through presentations, meetings and replies to requests for information by telephone, email or regular post.

Investor Relations Office contacts:
Address:
Investor Relations Office
CIMPOR – Cimentos de Portugal, SGPS, S.A.
Rua Alexandre Herculano, 35
1250-009 Lisboa
PORTUGAL
Personal Contacts:
Filipa S. Mendes
Telephones Fax E-Mail Internet
21 311 81 00
21 311 88 89
21 311 88 67 [email protected] www.cimpor.com

In addition, material information and other information of interest related to the Group's business, notices convening General Meetings and information on admission to those meetings, annual reports and accounts, a brief description of the shareholder structure and the development of the CIMPOR share price are also posted on the www.cimpor.com site.

In addition to the above items and compulsory information, as required under Article 4 of CMVM Regulation 1/2007, disclosed in Portuguese and English (which is also in accordance with CMVM recommendation III.1.3.) the site also includes the following:

  • A detailed report on the structure and corporate governance practices;
  • The Group's Code of Ethics;
  • The Board of Directors' Regulations;
  • The Audit Board's Regulations;

  • CIMPOR's Sustainability Report; and

  • Information on the Group's environmental and R&D policies.

The site also enables any interested party to immediately receive information published by CIMPOR via a mailing list created for the purpose.

Filipa Saraiva Mendes has served as the representative for relations with the stock market and the CMVM, pursuant to and for the purposes of the Securities Market Code, since 1 October 2004.

III.8. External Auditor

In 2009, the total cost of services rendered to the CIMPOR Group by its external auditors (Deloitte & Touche), including all the natural or legal persons belonging to its "network" (as set forth in European Commission Recommendation no. C (2002) 1873 of 16 May), amounted to 1,521,818 euros, broken down as follows:

a) legal certification of accounts 84.99 %
b) other assurance services 6.37 %
c) tax consultancy services 7.88 %
e) services other than legal certification of accounts 0.76 %

To safeguard the independence of these entities, the acquisition from them of any type of service that may jeopardize such independence is expressly forbidden, Specifically:

  • Accounting and administrative services, such as book-keeping, the preparation of financial statements and reports, the processing of salaries and the preparation of tax returns;
  • Conception, design and implementation of management information systems;
  • Evaluation of assets or liabilities likely to be reported in the Group's financial statements;
  • The provision of services that have been delegated in the internal auditing department;
  • Legal consultancy services requiring that the entities in question represent any of the Group's companies to resolve litigation and disputes with third parties;
  • Recruitment and selection of senior staff.

In addition, the acquisition of services from the external auditor or entities belonging to its "network", both in Portugal and in the countries where the Group operates, must comply with a set of rules established by the holding company and communicated to all Group companies. And so, besides prohibiting the contracting of the aforementioned services, the following must be emphasized:

  • The entities in question must, without fail, demonstrate the ability, credentials, resources and comparative advantages in relation to third parties, with respect to the provision of the services in question;
  • Bids to provide services submitted by those entities are analysed and assessed, and compared (whenever possible) to the market, by the person in charge of the area (or company) requiring the service, and subsequently, depending on the bid value, by the director of the respective department or the Executive Committee responsible for deciding whether or not to award the contract.

ANNEX I Members of the Management and Supervisory Bodies

(Termination of period in office: 2012)

Board of Directors

Ricardo Manuel Simões Bayão Horta

Chairman of the Board of Directors (since August 2001) and Chairman of the Executive Committee (since 3 December 2009)

Born in Lisbon, Portugal, on 19 November 1936. Graduated in Industrial Chemical Engineering from the Instituto Superior Técnico - IST (1959), Master of Science (1966) and Doctor of Philosophy (1968), from Birmingham University, Ph.D. in Engineering (1973) from IST and Professor (1979) at IST (retired).

Professional activities in last 5 years:

  • Member of the Senior Board of Banco Comercial Português, S.A.
  • Vice-Chairman of the General and Supervisory Board of Banco Comercial Português, S.A.
  • Chairman of the Audit Board of Banco Comercial Português, S.A.
  • Chairman of the Audit Board of Banco Millennium BCP Investimento, S.A.
  • Chairman of the Board of Directors of Atlansider, SGPS, S.A.
  • Those listed below

Positions in other companies, as at 31 December 2009:

• Chairman of the Board of Directors of Companhia Industrial de Resinas Sintéticas (CIRES), S.A.

Number of shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. held at 31 December 2009: 106,550.

Luís Eduardo da Silva Barbosa

Member of the Board of Directors (since August 2001)

Born in Lisbon, Portugal, on 7 July 1933. Graduated in Finance from the Instituto Superior de Ciências Económicas e Financeiras.

Professional activities in last 5 years:

  • Director of APA Associação Parque Atlântico
  • General Representative in Portugal of the Agency of Aviva Vie Société Anonyme d'Assurances Vie et Capitalisation
  • Chairman of the Board of Directors of ADI Administração de Investimentos, S.A.
  • Those listed below

Positions in other companies, as at 31 December 2009:

  • Chairman of the General Meeting
  • Bayer Portugal, S.A.
  • APA Associação Parque Atlântico
  • Chairman of the Board of Directors
  • Eurovida Companhia de Seguros de Vida, S.A.
  • Popular-Seguros, Companhia de Seguros, S.A.
  • President of Instituto Humanismo e Desenvolvimento
  • National President of the Portuguese Red Cross

  • Director

  • Oliveira Martins Foundation
  • Portugal-Africa Foundation
  • Manager of Silva & Barbosa Consultores Internacionais de Gestão, Lda.
  • Director of the Amélia da Silva de Mello Foundation
  • Consultant to the Somelos Indústrias Têxteis Group
  • Member of the Advisory Committee of the Portuguese Insurance Authority
  • Shareholders' representative in Banco Português de Investimentos
  • Chairman of the Remuneration Committee of Montepio Geral
  • Chairman of the Good Practices Committee of Lisbon Municipal Council

Number of shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. held at 31 December 2009: 3,820.

Vicente Árias Mosquera

Member of the Board of Directors (since August 2003)

Born in Santiago de Compostela, Spain, on 11 February 1947. Graduated in Law from the University of Santiago de Compostela.

Professional activities in last 5 years:

  • Chairman
  • La Toja, S.A.
  • Galicia Contemporary Art Centre
  • Chairman of the Board of Directors of Inversiones Ibersuizas, S.A.
  • Vice-Chairman of the Board of Directors
  • Unión Fenosa, S.A.
  • Banco Pastor
  • Director
  • Hullas del Coto Cortés, S.A.
  • Soluziona, S.A.
  • Inveralia, S.L.
  • Those listed below

Positions in other companies, as at 31 December 2009:

  • Chairman of the Board of Patrons of Escuela de Enseñanza Social de Galicia
  • Vice-Chairman
  • Board of Patrons of Fundación Juana de Veja
  • Fundación Galicia-Europa
  • Junta Territorial del Instituto de Estudios Superiores de Empresa (IESE) in Galicia
  • Director of the Board of Patrons of Fundación Unión Española de Explosivos
  • General Secretary of the Fundación Pedro Barrie de la Maza, Conde de Fenosa

Number of shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. held at 31 December 2009: 2,200.

António Sarmento Gomes Mota

Member of the Board of Directors (since 13 May 2009)

Born in Lisbon, Portugal, on 10 June 1958. Graduated in Management from Instituto Superior de Ciências do Trabalho e da Empresa (ISCTE), MBA (Universidade Nova de Lisboa) and Ph.D in Management (ISCTE).

Professional activities in last 5 years:

  • Professor at ISCTE
  • Chairman of ISCTE Business School
  • Managing Director of INDEG/ISCTE
  • Managing Director of CEMAF Consultoria Financeira

• Those listed below

Positions in other companies, as at 31 December 2009:

  • Chairman of the General Board of the Mutual Counter-Guarantee Fund
  • Member of the General and Supervisory Board of EDP Energias de Portugal, S.A.
  • Managing Director of Editorial Negócios

No shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. were held at 31 December 2009.

José Manuel Baptista Fino

Member of the Board of Directors (since April 2005)

Born in Portalegre, Portugal, on 10 January 1954. Supplementary High School Course (1971) and attended North East London Polytechnic (Business Studies), in London (1972-1974).

Professional activities in last 5 years / Posts held in other companies at 31 December 2009:

  • Chairman of the Board of Directors
  • SGFI Sociedade Gestora de Fundos de Investimento Imobiliário, S.A.
  • Ramada Holdings SGPS, S.A.
  • Área Infinitas Design de Interiores, S.A.
  • Dignatis Investimentos Imobiliários, S.A.
  • Ethnica, SGPS, S.A.
  • Director
  • Grupo Soares da Costa, SGPS, S.A.
  • Investifino Investimento e Participações, SGPS, S.A.
  • Manuel Fino, SGPS, S.A.
  • J.M. Fino, S.A.
  • Carfino, SGPS, S.A.
  • Block Imobiliária, S.A.
  • Specialty Minerals Portugal Especialidades Minerais, S.A.
  • Manager of Dorfino Imobiliário, Lda.

Number of shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. held at 31 December 2009: 1,050.

Jorge Humberto Correia Tomé

Member of the Board of Directors (since 13 May 2009)

Born in Angola, on 7 November 1954. Graduated in Business Management and Organisation from ISCTE. Master's Degree in Applied Economics (Faculty of Economics of Universidade Nova de Lisboa).

Professional activities in last 5 years:

  • Chairman of the Executive Committee of Caixa Banco de Investimento, S.A.
  • Non-executive director of Caixa Gestão de Patrimónios, S.A.
  • Those listed below

Positions in other companies, as at 31 December 2009:

  • Chairman of the Board of Directors
  • Caixa Banco de Investimento, S.A.
  • Gerbanca, SGPS, S.A.
  • Credip Instituição Financeira de Crédito, S.A.
  • Trem Aluguer de Material Circulante, A.C.E.
  • Trem II Aluguer de Material Circulante, A.C.E.
  • Vice-Chairman of the Board of Directors of Banco Caixa Geral Brasil, S.A.

  • Director

  • Caixa Geral de Depósitos, S.A.
  • Parcaixa, SGPS, S.A.
  • Portugal Telecom, SGPS, S.A.
  • Banco Comercial e de Investimentos, S.A. (Mozambique)
  • Member of the Strategy and Monitoring Committee of Fomentinvest, SGPS, S.A.

No shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. were held at 31 December 2009.

José Enrique Freire Arteta

Member of the Board of Directors (since April 2005)

Born in La Coruña, Spain, on 15 July 1948. Graduated in Economic Sciences from the Faculty of Barcelona.

Professional activities in last 5 years:

  • Executive Chairman of the Megasa Group (Bipadosa), with operations in the metallurgy (Portugal and Spain), real estate, transport and electricity sectors.
  • Member of the Board of Directors and Management Board of various companies of the Megasa Group

Positions in other companies, as at 31 December 2009:

  • Chairman of the Board of Directors
  • Bipadosa, S.A. (Spain)
  • Metalúrgica Galaica, S.A. (Spain)
  • Gestión Proinmega, S.L. (Spain)
  • LAF 98, S.L. (Spain)
  • Siderurgia Nacional, Empresa de Produtos Longos, S.A. (Portugal)
  • Inver Seixal Industrial, S.A. (Portugal)
  • Managing Director
  • Atlansider, SGPS, S.A.
  • Transportes Almacenes Transitários, S.A. (Spain)
  • Multimodal de Transportes Agrupados, S.L. (Spain)
  • Director
  • Freire Hermanos, S.A. (Spain)
  • Freire, Productos Siderúrgicos, S.A. (Spain)
  • Bipadosa Distribución y Transformación, S.L. (Spain)
  • Megaço, Productos Siderúrgicos, S.A. (Spain)
  • Feragueda, Productos Siderúrgicos, S.A. (Spain)
  • Comercial Galaica de Metales, S.L. (Spain)
  • LAF 2000, S.L. (Spain)
  • Manager of Megasa, Comércio de Produtos Siderúrgicos, Lda. (Portugal)
  • Secretary of Lesir, S.A. (Spain)

Number of shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. held at 31 December 2009: 1,130

Jorge Manuel Tavares Salavessa Moura

Member of the Board of Directors (since August 2001), Member of the Executive Committee (from August 2001 to 3 December 2009). Chairman of the Executive Committee (from 27 May 2009 to 3 December 2009).

Born in Lisbon, Portugal, on 4 December 1950. Graduated in Civil Engineering from the Instituto Superior Técnico of the Universidade Técnica de Lisboa.

Professional activities in last 5 years:

  • Director of CIMPOR and member of the Board of Directors of several Group companies, in Portugal and abroad
  • Chairman of the Executive Board of ATIC Associação Técnica da Indústria do Cimento

Positions in other companies of the CIMPOR Group, as at 31 December 2009:

  • Chairman of the Board of Directors
  • Cimpor Internacional, SGPS, S.A. (Portugal)
  • Cimpship Transportes Marítimos, S.A. (Portugal)
  • Asment de Témara, S.A. (Morocco)
  • Asment du Centre, S.A. (Morocco)
  • Cimpor Yibitas Çimento Sanayi ve Ticaret A.S. (Turkey)
  • Yibitas Yozgat Isçi Birli i Insaat Malzemeleri Ticaret ve Sanayi A.S. (Turkey)
  • Sociedade de Investimento Cimpor Macau, S.A. (China)
  • Cimpor Cement Corporation Limited (China)
  • Director
  • Corporación Noroeste, S.A. (Spain)
  • CJO Société les Ciments de Jbel Oust, S.A. (Tunisia)
  • Béton Jbel Oust, S.A. (Tunisia)
  • Granulats Jbel Oust, S.A. (Tunisia)
  • Cimpor Egypt for Cement Company, S.A.E (Egypt)
  • Amreyah Cement Company, S.A.E. (Egypt)
  • Amreyah Cimpor Cement Company, S.A.E. (Egypt)
  • Cement Services Company, S.A.E. (Egypt)
  • Cimpor Sacs Manufacture Company, S.A.E. (Egypt)
  • Amreyah Dekheila Terminal Company S.A.E. (Egypt)
  • Amreyah Cimpor Ready Mix Company, S.A.E. (Egypt)
  • NPC Cimpor (Pty) Limited (South Africa)
  • Natal Portland Cement Company (Proprietary), Limited (South Africa)
  • Shree Digvijay Cement Company Limited (India)
  • Manager
  • Kandmad, SGPS, S.A. (Portugal)

Other positions in companies outside the CIMPOR Group, at 31 December 2009:

  • Manager of Caxalp, SGPS, Lda.
  • Chairman of the Executive Board of ATIC Associação Técnica da Indústria do Cimento

Number of shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. indirectly held at 31 December 2009: 958,916

Luís Filipe Sequeira Martins

Member of the Board of Directors and the Executive Committee of CIMPOR – Cimentos de Portugal, SGPS, S.A. (since January 1997). Between February 1987 and January 1997 he was also director of the companies which, after a series of transformations, resulted in the present CIMPOR – Cimentos de Portugal, SGPS, S.A.

Born in Lisbon, Portugal, on 4 June 1947. Graduated in Chemical Engineering from the Instituto Superior Técnico of the Universidade Técnica de Lisboa.

Professional activities in last 5 years:

  • Executive Director of CIMPOR and member of the Board of Directors of several Group companies, in Portugal and abroad
  • Vice-Chairman of the Liaison Committee of CEMBUREAU European Cement Association

Positions in other companies of the CIMPOR Group, at 31 December 2009:

  • Chairman of the Board of Directors
  • Cimpor Portugal, SGPS, S.A. (Portugal)
  • Cimpor Indústria de Cimentos, S.A. (Portugal)
  • Cimpor Tec Engenharia e Serviços Técnicos de Apoio ao Grupo, S.A. (Portugal)
  • Sacopor Sociedade de Embalagens e Sacos de Papel, S.A.
  • Cimpor Inversiones, S.A. (Spain)
  • Cimpor Trading, S.A., Sociedade Unipessoal (Spain)

  • Cimpor Egypt for Cement Company, S.A.E. (Egypt)

  • Amreyah Cement Company, S.A.E. (Egypt)
  • Amreyah Cimpor Cement Company, S.A.E. (Egypt)
  • Amreyah Dekheila Terminal Company, S.A.E. (Egypt)
  • Amreyah Cimpor Ready Mix Company, S.A.E. (Egypt)
  • Cement Services Company, S.A.E. (Egypt)
  • Cimpor Sacs Manufacture Company, S.A.E. (Egypt)
  • Chairman of the Executive Committee of Corporación Noroeste, S.A. (Spain)
  • Director
  • Cimpor Internacional, SGPS, S.A. (Portugal)
  • Asment de Témara, S.A. (Morocco)
  • Asment du Centre, S.A. (Morocco)
  • CJO Sociéte Les Ciments de Jbel Oust, S.A. (Tunisia)
  • Béton Jbel Oust, S.A. (Tunisia)
  • Granulats Jbel Oust, S.A. (Tunisia)
  • Natal Portland Cement Company (Pty) Limited (South Africa)
  • NPC Cimpor (Pty) Limited (South Africa)
  • Cimpor Yibitas Çimento Sanayi ve Ticaret, A.S. (Turkey)
  • Yibitas Yozgat Isçi Birligi Insaat Malzemeleri Ticaret ve Sanayi, A.S. (Turkey)
  • Shree Digvijay Cement Company Limited (India)
  • Manager of Kandmad, SGPS, Lda. (Portugal)

Other positions in companies outside the CIMPOR Group, at 31 December 2009:

  • Chairman of the Liaison Committee of CEMBUREAU European Cement Association
  • Member of the Advisory Committee of the Luso Carbon Fund
  • Member of the Management Board of BSCD Portugal
  • Member of the Executive Committee of ATIC Associação Técnica da Indústria do Cimento

Number of shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. held at 31 December 2009: 197,860

Manuel Luís Barata de Faria Blanc

Member of the Board of Directors and Member of the Executive Committee (since August 2001)

Born in Lisbon, Portugal, on 24 February 1955. Graduated in Business Management and Administration from the Faculty of Human Sciences of Universidade Católica Portuguesa (1977).

Professional activities in last 5 years:

• Executive Director of CIMPOR and member of the Board of Directors of various Group companies, in Portugal and abroad.

Positions in other companies of the CIMPOR Group, at 31 December 2009:

  • Chairman of the Board of Directors
  • Cimpor Serviços de Apoio à Gestão de Empresas, S.A. (Portugal)
  • CJO Société Les Ciments de Jbel Oust, S.A. (Tunisia)
  • Béton Jbel Oust, S.A. (Tunisia)
  • Granulats Jbel Oust, S.A. (Tunisia)
  • Imopar Imobiliária de Moçambique, S.A.R.L. (Mozambique)
  • Natal Portland Cement Company (Pty) Limited (South Africa)
  • NPC Cimpor (Pty) Limited (South Africa)
  • Cimpor Reinsurance, S.A. (Luxembourg)
  • Director
  • Cimpor Portugal, SGPS, S.A. (Portugal)
  • Cimpor Internacional, SGPS, S.A. (Portugal)
  • Cimpor Inversiones, S.A. (Spain)
  • Corporación Noroeste, S.A. (Spain)
  • Asment de Témara, S.A. (Morocco)

  • Asment du Centre, S.A. (Morocco)

  • Cimpor Egypt for Cement Company, S.A.E. (Egypt)
  • Amreyah Cement Company, S.A.E. (Egypt)
  • Amreyah Cimpor Cement Company, S.A.E. (Egypt)
  • Amreyah Dekheila Terminal Company, S.A.E. (Egypt)
  • Amreyah Cimpor Ready Mix Company, S.A.E. (Egypt)
  • Cement Services Company, S.A.E. (Egypt)
  • Cimpor Sacs Manufacture Company, S.A.E. (Egypt)
  • Cimpor Yibitas Çimento Sanayi ve Ticaret, A.S. (Turkey)
  • Cimpor Finance, Ltd. (Ireland)
  • Manager of Kandmad, SGPS, Lda. (Portugal)

Other positions in companies outside the CIMPOR Group, at 31 December 2009:

  • Chairman of the General Meeting of the Cristo-Rei Benefit Fund
  • Chairman of the Board of Ponto de Apoio à Vida Social Solidarity Association

Number of shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. held at 31 December 2009: 216,860

António Carlos Custódio de Morais Varela

Member of the Board of Directors (since 13 May 2009) and Member of the Executive Committee (since 27 May 2009)

Born in Marinha Grande, Portugal, on 3 June 1956. Graduated in Business Management and Organisation from Instituto Superior de Economia of the Universidade Técnica de Lisboa. Master of Sciences in Industrial Relations and Personnel Management from the London School of Economics and Political Science of London University.

Professional activities in last 5 years:

  • Managing Director of UBS AG, undertaking duties in its office in Portugal
  • Executive Director of CIMPOR and member of the Board of Directors of various Group companies, in Portugal and abroad.

Positions in other companies of the CIMPOR Group, at 31 December 2009:

  • Director
  • Cimpor Serviços de Apoio à Gestão de Empresas, S.A. (Portugal)
  • Cimpor Inversiones, S.A. (Spain)

Other positions in companies outside the CIMPOR Group, at 31 December 2009:

• Director of C+PA – Cimento e Produtos Associados, S.A. (subsidiary of CIMPOR)

Number of shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. held at 31 December 2009: 25,000

Luís Miguel da Silveira Ribeiro Vaz

Member of the Board of Directors (since 13 May 2009) and Member of the Executive Committee (since 27 May 2009)

Born in Zimbabwe on 4 August 1965. Graduated in Economics from Universidade Nova de Lisboa. MBA (INSEAD France)

Professional activities in last 5 years:

  • Executive Director
  • TAP, S.A.
  • TAP, SGPS, S.A.
  • ONI, SGPS, S.A.
  • Comunitel (Vice-Chairman)
  • Non-Executive Director of SPdH Serviços Portugueses de Handling, S.A.
  • Advisor to the Deputy Secretary of State for Public Works and Communications

• Executive Director of CIMPOR and member of the Board of Directors of various Group companies, in Portugal and abroad.

Positions in other companies of the CIMPOR Group, at 31 December 2009:

  • Chairman of the Board of Directors
  • Ciarga Argamassas Secas, S.A. (Portugal)
  • Geofer Produção e Comercialização de Bens e Equipamentos, S.A. (Portugal)
  • Agrepor Agregados Extracção de Inertes, S.A. (Portugal)
  • Betão Liz, S.A. (Portugal)
  • Cement Trading Activities Comércio Internacional, S.A. (Portugal)
  • Seteshipping Transportes Internacionais, S.A.
  • Director
  • Cimpor Portugal, SGPS, S.A. (Portugal)
  • Cimpor Serviços de Apoio à Gestão de Empresas, S.A. (Portugal)
  • Ibera Indústria de Betão, S.A. (Portugal)
  • Cimpor Inversiones, S.A. (Spain)
  • Corporación Noroeste, S.A. (Spain)
  • Cimpor Trading, S.A., Sociedade Unipessoal (Spain)
  • Cimpor Yibitas Nakliyecilik Ticaret Sanayi, A.S. (Turkey)

No shares in CIMPOR – Cimentos de Portugal, SGPS, S.A. were held at 31 December 2009.

Pedro Abecassis Empis

Member of the Board of Directors (since 25 November 2009)

Born in Lisbon, Portugal, on 27 October 1952. Graduated in Chemical Engineering from Instituto Superior Técnico.

Professional activities in last 5 years / Posts held in other companies at 31 December 2009:

  • Managing Director of Chemsip, Lda.
  • Sales Manager of Sameca Produtos Químicos, S.A.

No shares in CIMPOR – Cimentos de Portugal, SGPS, S.A. were held at 31 December 2009.

Audit Board

Ricardo José Minotti da Cruz-Filipe

Chairman of the Audit Board (since March 1992, already holding since February 1987 the post of Chairman of the Supervisory Committee of CIMPOR – Cimentos de Portugal E.P.)

Born in Lisbon, Portugal, on 19 February 1934. Graduated in Civil Engineering from Instituto Superior Técnico.

Professional activities in last 5 years:

  • Chairman of the Audit Board of CIMPOR Cimentos de Portugal, SGPS, S.A.
  • Chairman of the Special Group for Reprivatisation, of the Ministry of Finance
  • Independent Member of the General and Supervisory Board of EDP Energias de Portugal, S.A.

No shares in CIMPOR – Cimentos de Portugal, SGPS, S.A. were held at 31 December 2009.

Luis Black Freire d'Andrade

Member of Audit Board (since May 2007)

Born in Beja, Portugal, on 4 October 1954. Graduated in Business Management and Administration from the Faculty of Human Sciences of Universidade Católica Portuguesa (1977).

Professional activities in last 5 years:

  • Chairman of the Board of Directors of A. Black Comércio e Indústria, S.A.
  • Those listed below

Positions in other companies, as at 31 December 2009:

  • Managing Director of Plenty Adventure, Lda.
  • Member of the Audit Board of Efacec Capital, SGPS, S.A.

No shares in CIMPOR – Cimentos de Portugal, SGPS, S.A. were held at 31 December 2009.

J. Bastos, C. Sousa Góis & Associados, SROC, Lda. represented by Jaime de Macedo Santos Bastos

Member of the Audit Board (since 13 May 2009) Jaime de Macedo Santos Bastos was, in an individual capacity, substitute member of the Audit Board between May 2007 and January 2008 and full member from January 2008 to May 2009.

Jaime de Macedo Santos Bastos was born in Lisbon, Portugal, on 26 November 1956. Graduated in Business Management and Administration from the Faculty of Human Sciences of Universidade Católica Portuguesa (1980) and as a Statutory Auditor (1987).

Professional activities in last 5 years / Posts held in other companies at 31 December 2009:

• Statutory Auditor of various companies, representing the J. Bastos, C. Sousa Góis & Associados, SROC, Lda firm. (the firm is registered with the Portuguese Society of Statutory Auditors as number 104)

Neither the firm or its representative held any shares of CIMPOR – Cimentos de Portugal, SGPS, S.A. at 31 December 2009.

Fixed Variable Remuneration Total
(amounts in euros) Remuneration (1) Bonus (2) Shares (3) Remuneration
Ricardo Bayão Horta
As non-executive director (4) 265,500.00 265,500.00
As executive director (5) 22,460.06 22,460.06
Luís Eduardo da Silva Barbosa (6) 59,112.50 59,112.50
Jacques Lefèvre (7) 21,670.83 21,670.83
Jean Carlos Ângulo (8) 61,916.67 45,000.00 106,916.67
Jorge M. T. Salavessa Moura
As non-executive director(5) 4,500.00 4,500.00
As executive director(4) 290,524.04 550,000.00 80,120.00 920,644.04
Luis Filipe Sequeira Martins (9) 288,334.87 340,000.00 50,075.00 678,409.87
Manuel Luís B. de Faria Blanc (9) 286,260.48 340,000.00 50,075.00 676,335.48
Pedro Maria C. Teixeira Duarte
As non-executive director(10) 19,750.00 19,750.00
As executive director(8) 159,245.76 350,000.00 90,135.00 599,380.76
Vicente Ária Mosquera (6) 59,112.50 59,112.50
José Manuel Baptista Fino (6) 59,112.50 59,112.50
José Enrique Freire Arteta (6) 59,112.50 59,112.50
António S. Gomes Mota (11) 40,050.78 40,050.78
Jean Desazars de Montgailhard (11)
Jorge H. Correia Tomé (11)
António C. C. de Morais Varela (12) 182,249.55 182,249.55
Albert Corcos (11) 87,849.82 87,849.82
Luis M. da Silveira Ribeiro Vaz (12) 174,698.51 174,698.51
Pedro Manuel Abecassis Empis (13) 6,150.00 6,150.00
Total 2,147,611.37 1,625,000.00 270,405.00 4,043,016.37

ANNEX II Remuneration of Members of the Board of Directors

(1) Includes supplementary pension schemes, subsidies and difference between purchase price of shares acquired under the Share Purchase Plan (see section III.5.1.) and the respective market price on the acquisition date.

(2) Variable remuneration paid in cash

(3) Difference between purchase price of shares acquired under the Share Options Plan for Directors and Senior Management of the Group (see sections II.4.2 and III.5.2) and the respective market price on the acquisition date.

(4) From 1 January to 3 December 2009

(5) From 3 December 2009

(6) Non-Executive Director

(7) Non-Executive Director (from 1 January to 13 May 2009)

(8) Executive Director (from 1 January to 13 May 2009)

(9) Executive Director

(10) From 13 May to 30 September 2009

(11) Non-Executive Director (from 13 May 2009)

(12) Executive Director (from 13 May 2009)

(13) Non-Executive Director (from 25 November 2009)

GROUP ACTIVITY

1. Macroeconomic and Sectorial Background

1.1. Evolution of the World Economy

Following the global financial crisis which began in 2007, 2009 was primarily marked by a notable drop in activity levels in most developed countries and the ensuing global downturn of the world economy by approximately 0.8%. The sharp decline in the levels of confidence of economic agents caused a significant drop in demand and a sharp reduction in international trade flows during the first half of the year, while in the second half the signs of recovery were already clearly visible as a result of the stabilisation and economic stimulus programmes implemented in the majority of countries.

This contrast was very evident in the U.S. economy: after a first quarter when GDP fell more than 6%, the last three months recorded annualised growth at a rate close to 5%, in response to stimulus from fiscal and monetary policies. Nevertheless, the decline of investment and private consumption led to GDP shrinking by around 2.4% for the year as a whole.

The Euro zone economy in 2009 registered almost identical behaviour, albeit with less pronounced ups and downs: GDP fell in the first six months (driven by significant reductions of exports and investment), followed by slight growth in the last two quarters - though not enough to prevent GDP declining in the region of 4% for the year as a whole. The worsening of the general government deficit of the entire Euro zone is of particular concern - from approximately 2% to close on 6% of GDP - as a result of the heavily expansionary fiscal policies adopted by the different governments to stimulate domestic demand.

The emerging economies, although registering some slowdown, were still quite dynamic, growing by almost 2.1% as a whole and increasingly taking on the role as one of the major drivers of world economic development. In this context, China, in terms of both its size and the growth rate achieved in 2009 (around 8.5%), continued to play a decisive role.

In Latin America, the effects of global economic crisis - particularly the fall in international trade during the first half of the year - led to a GDP decrease of around 2.7% (compared to a 4.2% increase the preceding year). The same was true in the African countries most exposed to international financial markets - as is the case of South Africa. The crisis did not, however, hinder growth in the region of 2% on the continent as a whole.

1.2. Evolution of the Cement Sector

World consumption of cement in 2009 according to the latest estimates will have been slightly over 3 billion tons, an increase of 7% on the preceding year. However, excluding China, where demand will have reached close on 1.6 billion tons (19.7% up on 2008), cement consumption declined by almost 6%.

The impact of the severe international economic and financial crisis, which began in the middle of the previous year, hit virtually all the countries of Europe and North America, generating significant falls in consumption, particularly in Ireland (-40%), Spain (- 33%), Russia (-33%), Ukraine (-30%) and USA (-26%). The decline in consumption in Eastern Europe will have been approximately 24%, while in Western Europe it will have attained 17%.

Besides China, India and also the entire Middle East region - both increasing of about 9% - were important exceptions to this recessionary climate. Of particular note in the Middle East region was the growth registered in Egypt (close to 25%).

In Latin America and sub-Saharan Africa cement consumption remained at virtually the same level as the preceding year, despite the declines registered in Colombia and South Africa (around 13%).

Generally, cement retail prices in both Western Europe and the USA showed great resilience to the crisis in the sector, thus mitigating the impact of the crisis on the industry's profitability. Italy and Spain, with estimated price reductions of about 7% and 11%, respectively, were the main exceptions to this rule. In Eastern Europe, most Middle East countries and some Asian countries (including China), there were more or less significant declines in price, in contrast to the strong increases generally observed in Africa and Latin America.

Accordingly, trading activity would be seriously undermined by the sharp drop in demand from the traditional major importing countries (such as the USA, Spain and Russia), which would create some pressure on domestic prices in markets such as China, Thailand and Turkey, which have excess production and found it very difficult to sell their surpluses.

In this climate, the mergers and acquisitions that occurred in the sector in 2009 were mainly driven by some major cement groups' need to reduce debt levels. Of particular note in this regard was Cemex selling its operations in Australia to Holcim and the divestments made by Lafarge in Turkey, Italy and Chile.

2. Review of the Group's Results

2.1. Summary of the Overall Business

In 2009, the CIMPOR Group's net profit after minority interests was EUR 237 million, amounting to growth of around 8.0% on the profits of the previous year (5.0% excluding non-recurring profits) and raising the Group's return on equity (ROE) to almost 15.2% (30 b.p. higher than in 2008).

2.1.1. Operating Income

In operational terms, CIMPOR demonstrated throughout the entire year notable resilience to the serious crisis besetting the world economy and the cement sector in particular, clearly proving the quality of the Group's assets and the excellence of its growth and internationalisation strategy: despite the extremely unfavourable climate of the Iberian market, the Operating Cash Flow (EBITDA) generated in 2009 increased by 3.3% to the amount of EUR 606 million, which is practically equal to its highest ever value. Excluding the costs in recent months of restructuring, especially in the concrete and aggregates areas (close on EUR 10.1 million), the growth of this indicator even exceeded 5%.

(EUR million) 2009 2008 Change 2007
Turnover 2,085.5 2,088.9 ‐ 0.2 % 1,966.1
Operating Cash Costs 1,479.6 1,502.5 ‐ 1.5 % 1,359.1
Operating Cash Flow (EBITDA) 605.9 586.3 3.3 % 607.0
Depreciation & Provisions 229.0 193.7 18.2 % 168.9
Operating Income (EBIT) 376.9 392.6 ‐ 4.0 % 438.1
Financial Income ‐ 63.1 ‐ 134.4 n.s. ‐ 48.0
Pre-tax Income 313.8 258.3 21.5 % 390.1
Income Tax 68.1 24.9 173.0 % 69.3
Net Income 245.7 233.3 5.3 % 320.8
Attributable to:
Shareholders 237.0 219.4 8.0 % 304.1
Minority Interests 8.7 13.9 ‐ 37.6 % 16.7
Earnings per share (euros) 0.357 0.330 8.3 % 0.454

Group Consolidated Income

Despite the impact of the above-referred costs on the EBITDA margin (subtracting around 0.5 p.p.), that margin recorded positive growth of 1.0 p.p. to register 29.1% for the year.

The Egypt, South Africa and Brazil business areas - benefiting from the rise of sale prices combined with, in the first two cases, market growth and greater cement manufacturing capacity with own clinker, respectively - were the driving forces of that growth, jointly accounting for an increase to Operating Cash Flow of almost EUR 76 million. Also deserving note, though less expressive in absolute terms, are the good performances recorded by the Tunisia business area and, in particular, the India business area which, in this its first full year of activity (within the CIMPOR Group), saw its EBITDA margin increase more than 9 p.p..

The Portugal and Spain business areas – heavily affected by a significant decline in cement consumption, accompanied in Spain by a sharp fall in sale prices - registered, on the other hand, a significant decrease of their Operating Cash Flow.

The lower profitability generated in 2009 in the majority of the other business areas was likewise due, on the whole, to shrinking demand (Cape Verde and trading activity), the decline in cement prices (China, from the middle of the year onwards) or the combination of these two factors (Turkey). The reduction of EBITDA in Mozambique is wholly explained by the continued existence of certain operational problems and the consequent worsening of maintenance costs.

(EUR million) 2009 2008 2007
Portugal 149.6 171.9 ‐ 13.0 % 172.7
Spain 46.6 82.9 ‐ 43.8 % 137.8
Morocco 41.8 41.0 2.1 % 35.2
Tunisia 19.6 17.0 15.4 % 18.9
Egypt 104.5 73.2 42.7 % 58.6
Turkey 11.1 15.6 ‐ 29.2 % 38.6 (1)
Brazil 123.1 102.3 20.3 % 73.9
Mozambique 11.9 13.6 ‐ 12.5 % 12.3
South Africa 70.4 46.2 52.5 % 43.0
China 4.7 6.3 ‐ 24.1 % 1.8 (2)
India 9.9 3.1 (3) 216.6 %
Cape Verde 3.8 4.2 ‐ 9.5 % 3.0
Trading / Shipping 6.4 7.5 ‐ 14.5 % 6.3
Other Activities 2.4 1.5 55.5 % 4.8
Total 605.9 586.3 3.3 % 607.0
EBITDA Margin 29.1% 28.1% 30.9 %

Operating Cash Flow (EBITDA)

(1) March - December (2) July - December (3) April - December

Depreciation and Provisions - as a result of the acquisitions made in late 2008 and investments that have been concluded in the meantime - increased by nearly 18%, leading to a decrease in operating income of close on EUR 16 million. Nonetheless, with non-recurring items eliminated, it slightly exceeded EUR 400 million, recording growth of 2.1% and maintaining the Return on Capital Employed (ROCE), net of taxes, at 9.1%.

2.1.2. Sales and Turnover

In spite of the decline of consumption in the markets of Turkey, Cape Verde and, above all, Portugal, Spain and South Africa, cement and clinker sales of the CIMPOR Group, benefiting from the extension of the Group's consolidation perimeter and the growth of demand in the Egypt market, amounted to around 27.4 million tons in 2009, 2.2% up on the previous year.

Contrasting with the heavy increases recorded in the business areas of India (integrated in April 2008), China (due to the growth of installed capacity) and Egypt, in particular, the Portugal, South Africa and Cape Verde business areas registered significant decreases. Cement and clinker sales in the specific case of Portugal were affected by, in addition to the decline in domestic demand (estimated to be approximately 16%), a significant fall in exports, primarily caused by the shrinkage of the Spanish market. In the Spain business area, despite the fact that cement consumption fell nationwide by almost 33%, the Group's sales remained practically unchanged owing to the contribution from the operations in the Canary Islands taken over at the end of 2008.

(Thousand tons) 2009 2008 Change 2007
Portugal 4,251 5,636 ‐ 24.6 % 6,133
Spain 3,147 3,190 ‐ 1.3 % 4,055
Morocco 1,175 1,154 1.9 % 1,130
Tunisia 1,614 1,521 6.1 % 1,461
Egypt 4,151 3,200 29.7 % 2,822
Turkey 2,184 2,250 ‐ 2.9 % 2,308 (1)
Brazil 4,532 4,652 ‐ 2.6 % 4,316
Mozambique 777 744 4.5 % 665
South Africa 1,432 1,641 ‐ 12.7 % 1,450
China 3,610 2,989 20.8 % 1,442 (2)
India 1,128 664 (3) 69.8 %
Cape Verde 224 287 ‐ 21.9 % 242
Subtotal 28,226 27,929 1.1 % 26,025
(Intra-group sales) (824) (1,122) n.s. (1,479)
Consolidated total 27,402 26,807 2.2 % 24,547
(1) March - December (2) July - December (3) April - December

Cement and Clinker Sales

As a result of the market crises in Portugal, Spain and Turkey, sales of ready-mix concrete (7.3 million cubic metres), aggregates (13.9 million tons) and mortar (543,000 tons) declined sharply, which was decisive in keeping the Group Turnover - totalling around EUR 2.1 billion – at a value below that obtained in 2008.

Product/Business Area 2009 2008 Change 2007
Concrete (1,000 m3)
Portugal 2,253 2,887 ‐ 22.0 % 3,195
Spain 2,190 2,382 ‐ 8.1 % 2,965
Turkey 870 1,360 ‐ 36.0 % 983 *
Brazil 1,274 1,241 2.6 % 996
Other Business Areas 677 696 ‐ 2.7 % 525
Total 7,264 8,567 ‐ 15.2 % 8,664
Aggregates (1,000 ton)
Portugal 6,431 7,399 ‐ 13.1 % 6,904
Spain 4,926 5,260 ‐ 6.3 % 5,296
Turkey 1,207 2,293 ‐ 47.3 % 1,946 *
South Africa 831 740 12.3 % 811
Other Business Areas 495 417 18.8 % 240
Total 13,891 16,109 ‐ 13.8 % 15,196
Mortar (1,000 ton) 543 562 ‐ 3.5 % 543

Concrete, Aggregates and Mortar Sales

* March – December

In this regard, besides the contribution from the new business area of India, the strong growth registered in Egypt (+49.2%), China (+23.5%), South Africa (+10.5%) and Tunisia (+9.1%) is to be highlighted, though they were not enough to offset the decline of this indicator that was recorded in Spain (-8.4%), Portugal (-17.9%), Cape Verde (-25.6%) and Turkey (-31.1%). As a result of these developments, Portugal and Spain's relative share of the Group's Turnover, excluding internal transactions, decreased from 39% in 2008 to only 35% in 2009.

Turnover
(EUR million) 2009 2008 Change 2007
Portugal 448.8 546.6 ‐ 17.9 % 562.6
Spain 328.8 358.8 ‐ 8.4 % 470.9
Morocco 94.2 88.8 6.0 % 80.5
Tunisia 69.9 64.0 9.1 % 59.7
Egypt 240.6 161.2 49.2 % 120.6
Turkey 107.5 156.1 ‐ 31.1 % 163.1 (1)
Brazil 427.4 401.3 6.5 % 322.0
Mozambique 80.9 77.4 4.6 % 60.1
South Africa 152.8 138.2 10.5 % 129.8
China 81.1 65.6 23.5 % 23.9 (2)
India 52.9 32.3 (3) 63.9 %
Cape Verde 31.3 42.1 ‐ 25.6 % 30.5
Other Activities 101.0 142.6 ‐ 29.2 % 133.6
Subtotal 2,217.0 2,275.0 ‐ 2.5 % 2,157.2
(Intra-group Sales) (131.5) (186.2) n.s. (191.2)
Consolidated Total 2,085.5 2,088.9 ‐ 0.2 % 1,966.1
(1) March – December (2) July – December (3) April – December

2.1.3. Financial Income and Taxes

Financial income, excluding non-recurring costs, was approximately negative EUR 50.5 million, which is an improvement of almost EUR 9 million on the previous year's figure, following the same criteria (when Financial Income was affected by the exceptional recognition of a loss of approximately EUR 77 million). Net interest expenditure in particular increased less than EUR 2 million, which demonstrates, in contrast with the increase (16.4% in terms of annual average balance) of Net Financial Debt, a notable reduction of the cost of debt.

Income tax grew by only 1.9%, once the non-recurring earnings reported in 2008 and 2009 are eliminated (in the net values of approximately EUR 49.6 million and EUR 7.8 million, respectively).

2.1.4. Financial Situation

As a result of concluded investments and the appreciation against the euro of some currencies of the countries in which the Group operates (especially Brazil and South Africa), the amount of Capital Employed (not considering investments in progress) increased by almost EUR 336 million (9.9%) in 2009, to exceed EUR 3.7 billion.

The above-referred investments included the conclusion of the new Hasanoglan plant (Turkey), the Huaian grinding plant (China) and the project to expand the production capacity of the João Pessoa facility (Brazil), which raised the CIMPOR Group's total cement production capacity with own clinker from 31.0 million tons to 33.5 million tons/year. Also noteworthy among the investments made are the installation of a third grinding facility at the Asment Témara plant (Morocco) and the construction of the new Shanting plant (China), which has already been completed in 2010 and has added a further 2.4 million tons/year to the Group's overall production capacity.

Net financial debt, which, including equivalent items, was EUR 1.933 billion euros at the end of 2008, had decreased to EUR 1.709 billion by December 2009 - a reduction of almost 11.6%. This decrease meant that net debt's share of total Capital Invested decreased between those two dates from approximately 52% to a little under 45%, and the Net Debt/EBITDA ratio lowered from 3.2 to 2.8.

Besides the high level of cash flow generated during the year, the success obtained with the Working Capital Reduction Programme, which was initiated in early 2009, was likewise decisive in this development since it resulted in a decrease to that indicator of more than EUR 50 million (almost 13%), bringing it down to a level of activity virtually identical to the previous year.

(EUR million) 2009 2008 Change 2007
Working Capital 351.9 403.4 ‐ 12.8 % 307.0
Tangible Fixed Assets 1,986.4 1,705.3 16.5 % 1,682.0
Goodwill 1,352.3 1,277.0 5.9 % 1,283.7
Other Assets (net Other Liabilities) 28.0 (3.2) n.s. (58.1)
Capital Employed 3,718.6 3,382.5 9.9 % 3,214.6
Investments in Progress 142.1 302.9 ‐ 53.1 % 213.1
Financial Investments 31.1 105.2 ‐ 70.5 % 168.4
Other Non-Operating Assets (net) (68.3) (87.5) n.s. (97.7)
Invested Capital 3,823.4 3,703.2 3.2 % 3,498.4
Net Financial Debt 1,698.7 1,862.6 ‐ 8.8 % 1,359.3
(Available for sale Investments) (62.1) (4.1) n.s. (9.8)
Provisions 72.1 74.7 ‐ 3.5 % 71.5
Financial Debt and Equivalent 1,708.6 1,933.2 ‐ 11.6 % 1,421.1
Equity attributable to:
Shareholders 1,830.5 1,505.1 21.6 % 1,796.4
Minority Interests 92.5 110.7 ‐ 16.5 % 102.9
Deferred Taxes 126.5 94.3 34.1 % 75.1
Provisions for Taxes and Others 65.2 59.8 9.0 % 102.9
Equity and Equivalents 2,114.8 1,770.0 19.5 % 2,077.3
Invested Capital 3,823.4 3,703.2 3.2 % 3,498.4
Return on Capital Employed 9.1 % 9.1 % 11.7 %
Return on Equity 15.2 % 14.9 % 16.6 %

Invested Capital

* Adjusted for non-recurring profits

Unit Portugal (1) Spain (1) Morocco Tunisia Egypt Turkey
Cement Activity
Installed Capacity (2) $10^3$ ton 6970 3 2 2 0 1 2 8 0 1640 3 9 0 0 3035
Cement and Clinker Sales 10 ton 4 2 5 1 3 1 4 7 1 1 7 5 1614 4 1 5 1 2 1 8 4
Market Share 55.8% 10.5% 8.1% 23.4% 8.6% 5.3%
Overall Activity
Turnover 6
10 euros
448.8 328.8 94.2 69.9 240.6 107.5
Operating Cash Flow (EBITDA) 10 euros 149.6 46.6 41.8 19.6 104.5 11.1
Operating Income (EBIT) 6
10 euros
94.0 0.5 33.2 11.9 93.2 $-18.7$
Net Profit before Minority Interests 10 euros 74.8 $-5.9$ 22.2 12.5 89.1 $-16.7$
Capital Employed 6
10 euros
546.3 696.7 81.3 114.6 241.6 601.3
Industrial Investment 6
10 euros
18.8 18.8 9.6 4.4 9.1 62.2
Employees (31 Dec) unit 1407 1 1 1 9 205 209 493 825
Turnover / Employee $-3$
10 euros
306 269 460 323 490 128
Value Added / Employee 10 euros 144 92 233 108 224 36
EBITDA Margin 33.3% 14.2% 44.4% 28.1% 43.4% 10.3%
EBIT Margin 21.0% 0.1% 35.3% 17.1% 38.7% $-17.4%$
Unit Brazil Mozambique South Africa China India C. Verde
Cement Activity
Installed Capacity (2) 3
10 ton
6365 685 1640 3625 1 1 8 0 $\overline{\phantom{a}}$
Cement and Clinker Sales $10^3$ ton 4532 777 1432 3 6 1 0 1 1 2 8 224
Market Share 9.1% 77.0% 12.6% 0.1% 0.5% 72.1%
Overall Activity
Turnover $10^{6}$ euros 427.4 80.9 152.8 81.1 52.9 31.3
Operating Cash Flow (EBITDA) 6
10 euros
123.1 11.9 70.4 4.7 9.9 3.8
Operating Income (EBIT) 10 euros 88.4 6.3 58.9 0.2 3.8 2.9
Net Profit before Minority Interests $10^{6}$ euros 57.4 2.2 40.2 $-6.8$ 2.1 1.6
Capital Employed 6
10 euros
901.5 53.8 228.6 94.5 87.2 19.6
Industrial Investment 10 euros 54.4 12.1 7.5 49.6 3.7 1.1
Employees (31 Dec) unit 1541 476 595 1051 537 127
Turnover / Employee 10 euros 280 175 246 92 97 242
Value Added / Employee 10 euros 109 37 138 10 24 39
EBITDA Margin 28.8% 14.7% 46.1% 5.9% 18.8% 12.2%
EBIT Margin 20.7% 7.8% 38.6% 0.2% 7.2% 9.2%

Contribution and Relative Position of the Different Business Areas (2009)

CIMPOR -- CIMENTOS DE PORTUGAL, SGPS, S.A. | GROUP 86

Contribution and Relative Position of the Different Business Areas (2009)

2.2. Portugal

In 2009 the Portuguese economy contracted by 2.7%, which even so, compares favourably with the decrease in output (close on 4%) observed in the whole Euro zone as a whole. The decline in external demand and, above all, the slowdown of investment, in the region of 12.6%, were the main drivers of this evolution, since private consumption, stimulated by negative inflation rates will not have fallen more than 1%.

Investment in the construction sector was particularly penalized, shrinking around 13%, which led to a reduction in its business activity of close to 6%. That decline was not more pronounced due to the good performance of the civil engineering segment, fuelled by the increase in public investment and also the volume of public works tendered out in previous years and implemented in 2009. In the non-residential buildings segment, the level of activity declined by about 9%, despite the significant investment made in school infrastructures. The fall in production in the housing segment, which is heavily in crisis, will have reached 15%.

Unit 2009 2008 Change 2007
Installed Capacity (1) 103
ton
6,970 6,900 1.0% 6,820
Use of Installed Capacity (2) 63.0% 87.8% 93.2%
Cement and Clinker Sales 103
ton
4,251 5,636 ‐ 24.6% 6,133
Market Share 55.8% 54.9% 55.1%
Concrete Sales 103
m3
2,253 2,887 ‐ 22.0% 3,195
Aggregate Sales 103
ton.
6,431 7,399 ‐ 13.1% 6,904
Mortar Sales 103
ton.
134 175 ‐ 23.5% 150
Turnover 106
euros
448.8 546.6 ‐ 17.9% 562.6
Operating Cash Flow (EBITDA) 106
euros
149.6 171.9 ‐ 13.0% 172.7
Operating Income (EBIT) 106
euros
94.0 117.3 ‐ 19.8% 117.7
Capital Employed 106
euros
546.3 616,8 ‐ 11.4% 595.6
Industrial Investment 106
euros
18.8 31.9 ‐ 40.9% 28.5
Employees (31 Dec) Units 1,407 1,540 ‐ 8.6% 1,559
Turnover/Employee 103
euros
306 354 ‐ 13.6% 360
EBITDA Margin 33.3% 31.4% 30.7%
EBIT Margin 21.0% 21.5% 20.9%

Portugal Business Area

(1) Cement production capacity with own clinker (average over year)

(2) Clinker production / Installed capacity (clinker)

In this climate, national cement consumption fell by almost 16%, restricting itself to just over 6 million tonnes, and showing an accumulated fall between 2001 and 2009 of almost 50%. Sales of cement and clinker of the CIMPOR Group fell by almost 1.4 million tons (24.6%), even though the domestic market registered a not so steep reduction (14.5%). This decline in sales is the result of the heavy fall in external demand and the consequent drop in exports to about half the volume achieved in 2008.

Ready-mix concrete sales also declined heavily (around 22.0% lower than the preceding year), to 2.25 million cubic metres. After recovering in 2008, aggregate and mortar sales again declined in 2009, registering decreases of 13.1% and 23.5%, respectively.

As a consequence of this lower activity level, both Turnover (EUR 449 million) and EBITDA (EUR 150 million) sharply declined. The respective margin though registered an improvement, for the second consecutive year (33.3%).

Investment totalled around EUR 19 million (41% down on 2008), with the completion of the alternative fuels handling and burning facilities at the Loulé plant of particular note.

2.3. Spain

The Spanish economy registered a sharp downturn in 2009 (around 3.6%) as domestic demand fell around 6.5%, due to the decrease of private consumption (5.1%) and, in particular, investment (15.5%). The general government deficit worsened substantially to 10.4% of GDP (1.6% in 2008), while the unemployment rate climbed almost 8 percentage points to nearly 19% by the close of the year.

The fall in the level of activity in the construction sector was particularly significant (only surpassed by Ireland in the euro zone), which drove a decrease in cement consumption to around 28.6 million tonnes - 33% less than in the previous year and almost half the consumption in 2007. In the markets where the Group operates, the development was once again quite varied: in Galicia cement consumption will have fallen by around 15%, in Extremadura it decreased around 23% and in Andalusia and the Canary Islands it fell more than 30%.

As a result of the integration of the operations acquired in the Canary Islands at the end of 2008 and also the sale of some clinker to third parties, the total amount of clinker and cement sold by the CIMPOR Group in 2009 was approximately 3.15 million tons, which is only 1.3% down on the previous year and raised the Group's national market share (cement) to 10.5%.

Sales of concrete (2.2 million cubic metres), aggregates (4.9 million tons) and mortar (200,000 tons) also benefited from that enlargement of the Group's perimeter, which considerably attenuated the decline in sales (concrete and aggregate) and in the case of mortar even led to slight growth.

As in previous years, the sharp shrinkage of demand continued to exert great pressure on most selling prices, particularly in the south where cement prices in particular fell almost 17%, in terms of average annual. Hence, given the reduced level of activity of the Group in the concrete and aggregates areas, the Group's Turnover fell by 8.4% to less than 329 million.

Unit 2009 2008 Change 2007
Installed Capacity (1) 103
ton
3,220 3,200 0.6% 2,675
Use of Installed Capacity (2) 81.7% 76.7% 89.3%
Cement and Clinker Sales 103
ton
3,147 3,190 ‐ 1.3% 4,055
Market Share 10.5% 7.4% 7.2%
Concrete Sales 103
m3
2,190 2,382 ‐ 8.1% 2,965
Aggregate Sales 103
ton.
4,926 5,260 ‐ 6.3% 5,296
Mortar Sales 103
ton.
200 196 2.3% 230
Turnover 106
euros
328.8 358.8 ‐ 8.4% 470.9
Operating Cash Flow (EBITDA) 106
euros
46.6 82.9 ‐ 43.8% 137.8
Operating Income (EBIT) 106
euros
0.5 47.6 ‐ 99.0% 94.0
Capital Employed 106
euros
696.7 652.3 6.8% 449.4
Industrial Investment 106
euros
18.8 35.4 ‐ 46.8% 45.1
Employees (31 Dec) units 1,119 991 12.9% 998
Turnover/Employee 103
euros
269 350 ‐ 23.2% 469
EBITDA Margin 14.2% 23.1% 29.3%
EBIT Margin 0.1% 13.3% 20.0%

Spain Business Area

(1) Cement production capacity with own clinker (average over year)

(2) Clinker production / Installed capacity (clinker)

The decline of sale prices and the costs incurred with a major restructuring initiated in all areas (totalling more than EUR 6.5 million), the Operating Cash Flow generated in the Spain business area decreased by around EUR 36 million (43.8%) and the EBITDA margin declined from 23.1% in 2008 to only 14.2% in 2009. Operating income fell by close on 47 million as a result of this decrease in cash flow and the significant increase in depreciation due to the extension of Group's perimeter, to end the year practically at zero.

The major investments of the total of about EUR 19 million included the final work on the modernizing projects at the Córdoba and Niebla plants, the transformation of an electro-filter and the renewal of the control system at the Toral de los Vados plant and recovery work at various quarries.

2.4. Morocco

In 2009, Morocco recorded a GDP growth rate close to 5%, despite the international economic crisis, following an excellent agricultural year and, since this sector employs more than one-third of the workforce, the consequent growth of private consumption (further driven by the reduction of income taxes and the expansion of the availability of personal credit).

The downturn in the property sector, largely due to the 8% decline in remittances sent by emigrants, led to a slight contraction of the construction and public works sector and a lower increase of domestic consumption of cement (3.4%) than that recorded in recent years.

Cement sales of Asment de Témara (1.175 million tonnes) increased slightly more than the market rate (4.7%), benefiting from the entry into operation of a third grinding facility. However, the increase was only 1.9% when recorded in conjunction with sales of clinker (non-existent in 2009).

Unit 2009 2008 Change 2007
Installed Capacity (1) 103
ton
1,280 1,295 ‐ 1.2% 1,295
Use of Installed Capacity (2) 88.7% 100.0% 82.2%
Cement and Clinker Sales 103
ton
1,175 1,154 1.9% 1,130
Market Share 8.1% 8.0% 8.2%
Concrete Sales 103
m3
311 371 ‐ 16.3% 307
Aggregate Sales 103
ton
104 118 ‐ 11.5% 110
Turnover 106
euros
94.2 88.8 6.0% 80.5
Operating Cash Flow (EBITDA) 106
euros
41.8 41.0 2.1% 35.2
Operating Income (EBIT) 106
euros
33.2 30.5 8.8% 28.4
Capital Employed 106
euros
81.3 75.6 7.6% 65.1
Industrial Investment 106
euros
9.6 9.3 2.9% 8.2
Employees (31 Dec) unit 205 207 ‐ 1.0% 206
Turnover/Employee 103
euros
460 437 5.4% 398
EBITDA Margin 44.4% 46.1% 43.8%
EBIT Margin 35.3% 34.4% 35.3%

Morocco Business Area

(2) Clinker production / Installed capacity (clinker)

The cooling of the construction sector has particularly affected the activity of Betocim - which was primarily hindered by the establishment of stricter rules for lending funds - leading to a notable reduction in sales volume of both ready-mix concrete (-16 3%, despite the start-up of two new plants) and aggregates (-11.5%).

The consolidated Turnover in Morocco was slightly over EUR 94 million euros (up 6.0% on the preceding year), generating an EBITDA of approximately EUR 42 million. The weak growth of EBITDA (2.1%) and the decrease of its margin by about 1.7 percentage points are essentially due to the increase of the price of electricity (nearly 20%), which occurred in March.

The main highlights in terms of investment are the completion of the installation of the aforementioned third cement grinding facility at the Asment de Témara plant (the first piece of equipment of Chinese technology installed within the Group, apart from assets in China).

2.5. Tunisia

In 2009, contrary to the previous year when the weak international exposure of the financial sector allowed the Tunisian economy to resist the global crisis, the decline in external demand and falling prices of raw materials led to a sharp downturn of exports (around 25%), limiting the growth of GDP to around 3%. This result is, even so, clearly positive thanks to the increased production of the agricultural sector (up about 13%).

The impetus given to public works by it being an election year also allowed this sector to evolve favourably, leading to a 5.3% increase in the domestic consumption of binders (cement and hydraulic lime). The strong demand (totalling 6.6 million tonnes) even led the authorities to impose export limits on cement from May, which caused exports to decline by more than 30% for the year as a whole.

Unit 2009 2008 Change 2007
Installed Capacity (1) 103
ton
1,640 1,600 2.5% 1,560
Use of Installed Capacity (2) 91.2% 88.7% 89.5%
Cement Sales 103
ton
1,614 1,521 6.1% 1,461
Market Share 23.4% 23.5% 24.0%
Turnover 106
euros
69.9 64.0 9.1% 59.7
Operating Cash Flow (EBITDA) 106
euros
19.6 17.0 15.4% 18.9
Operating Income (EBIT) 106
euros
11.9 9.3 27.5% 10.8
Capital Employed 106
euros
114.6 126.4 ‐ 9.4% 121.5
Industrial Investment 106
euros
5.1 3.2 60.5% 1.5
Employees (31 Dec) Unit 209 221 ‐ 5.4% 226
Turnover/Employee 103
euros
323 290 11.4% 262
EBITDA Margin 28.1% 26.6% 31.7%
EBIT Margin 17.1% 14.6% 18.1%

Tunisia Business Area

(2) Clinker production / Installed capacity (clinker)

CJO, besides following the growth of the domestic market and in spite of its referred limitations, more than doubled its exports (which were of little relevance in 2008), to achieve total cement sales of about 1.6 million tons (up 6.1% on the preceding year). Turnover grew by 9.1% to almost EUR 70 million, benefiting from the growth of exports, the administrative review of sales prices in the domestic market and the fact that export prices are higher than domestic prices.

The increase to Operating Cash Flow was even more significant (15.4%), for those same reasons, coupled with the fall in fuel costs, and the respective margin increased by 1.5 percentage points.

Total investment undertaken (EUR 5.1 million) increased by around 60% on the previous year, with the highlights including the project to link the silos to the bagging area.

2.6. Egypt

The Egyptian economy slowed down in 2009, following strong growth in 2008, which was reflected in the decrease of GDP growth to around 4.7%. This development is still evidently positive, based on robust domestic demand and, in particular, on the dynamism of some important sectors, such as telecommunications and construction and public works.

The growth of the construction and public works sector led to notable growth of cement consumption, raising the total to almost 48 million tonnes (24.7% up on the preceding year), which, given the limitations of domestic supply, led the authorities to extend the ban on the export of cement and clinker to October 2010 and to remove the respective import duties.

The CIMPOR Group, by improving its distribution capacity and purchasing 300,000 tons of clinker, achieved growth of almost 30%, increasing its market share to around 8.6%. Total sales were equivalent to 4.15 million tons.

The combined effect of increased sales, the price rise at the start of the year and a certain appreciation of the Egyptian pound against the euro led to an increase of almost EUR 80 million (49.2%) in Turnover and EBITDA growth that took this indicator over the EUR 100 million mark.

Investment amounted to about EUR 9 million, comprising a range of projects aimed primarily at ensuring the operational continuity of the equipment and increasing reliability. The highlights included the installation of a new fabric filter in the kilns of AMCC.

Unit 2009 2008 Change 2007
Installed Capacity (1) 103
ton
3,900 3,900 0.0% 3,900
Use of Installed Capacity (2) 92.7% 84.0% 72.7%
Cement and Clinker Sales 103
ton
4,151 3,200 29.7% 2,822
Market Share 8.6% 8.3% 7.9%
Turnover 106
euros
240.6 161.2 49.2% 120.6
Operating Cash Flow (EBITDA) 106
euros
104.5 73.2 42.7% 58.6
Operating Income (EBIT) 106
euros
93.2 58.9 58.3% 46.0
Capital Employed 106
euros
241.6 256.5 ‐ 5.8% 238.9
Industrial Investment 106
euros
9.1 5.1 79.0% 19.2
Employees (31 Dec) Unit 493 488 1.0% 491
Turnover/Employee 103
euros
490 331 47.8% 246
EBITDA Margin 43.4% 45.4% 48.6%
EBIT Margin 38.7% 36.5% 38.2%

Egypt Business Area

(1) Cement production capacity with own clinker (average over year)

(2) Clinker production / Installed capacity (clinker)

2.7. Turkey

The global economic crisis seriously affected the Turkish economy, causing GDP to decline by more than 6% and the unemployment rate to increase to around 13%. The decline in demand and fall in the price of commodities lowered the inflation rate from over 10% in 2008 to close on 6% in 2009, which allowed the Central Bank to cut overnight interest rates by about 10 pp in the space of just one year.

The construction sector was hardest hit by the crisis, contracting in the region of 20%. Against this backdrop, domestic consumption of cement fell by an estimated 6% to a little under 40 million tons. Simultaneously, installed capacity continued to increase significantly, which, combined with export difficulties caused by the decline in external demand (mainly from Russia), caused a worsening of the instability in the sector and heightened the price war began in 2008.

The market of Cimpor Yibitas (Central Anatolia and Black Sea) will have fallen less than the national average, and the company recorded a 5% drop in cement sales (2.1 million tons) which was no more than 2.9% when combined with clinker sales. Concrete and aggregate sales recorded extremely significant declines - 36% and 47%, respectively.

The latter, associated with the fall in cement sale prices and the sharp devaluation of the local currency against the euro (12% in terms of average annual exchange rate), led to a reduction of about 30% in both Turnover and the corresponding EBITDA, which pushed Operating Income into clearly negative terrain.

Unit 2009 2008 Change 2007 (1)
Installed Capacity (2) 103
ton
2,430 2,000 21.5% 1,680
Use of Installed Capacity (3) 89.1% 101.1% 98.9%
Cement and Clinker Sales 103
ton
2,184 2,250 ‐ 2.9% 2,308
Market Share 5.3% 5.2% 5.4%
Concrete Sales 103
m3
870 1,360 ‐ 36.0% 983
Aggregate Sales 103
ton.
1,207 2,293 ‐ 47.3% 1,946
Turnover 106
euros
107.5 156.1 ‐ 31.1% 163.1
Operating Cash Flow (EBITDA) 106
euros
11.1 15.6 ‐ 29.2% 38.6
Operating Income (EBIT) 106
euros
‐ 18.7 ‐ 0.8 n.s. 23.3
Capital Employed 106
euros
601.3 486.7 23.5% 596.1
Industrial Investment 106
euros
62.2 70.4 ‐ 11.6% 18.5
Employees (31 Dec) Unit 825 848 ‐ 2.7% 803
Turnover/Employee 103
euros
128 188 ‐ 31.8% 255
EBITDA Margin 10.3% 10.0% 23.6%
EBIT Margin Neg. Neg. 14.3%

Turkey Business Area

(2) Cement production capacity with own clinker (average over year)

(3) Clinker production / Installed capacity (clinker)

Investments amounted to more than EUR 60 million, with the highlights being the conclusion in late July of the work to install a new clinker production line (2,500 tons/day) at Hasanoglan (in the Ankara region), the construction of a new cement silo at the Sivas plant and the increase of grinding capacity by almost 20% at the Yozgat plant.

2.8. Brazil

Following a period of five years of strong growth, the Brazilian economy almost stagnated with the impact of the global economic crisis, registering a GDP growth rate close to zero or even slightly negative. The effect of the crisis was, even so, substantially reduced by the dynamism of private consumption and the launch of a range of fiscal and monetary stimuli aimed at increasing the confidence levels of private individuals and businesses.

Those stimuli included the reduction of the "Industrial Products Tax" on some thirty items of construction materials and the launch of the "My House, My Life" National Housing Plan to provide poorest families with easier access to home ownership.

The latest estimates of the Brazilian cement market indicate total consumption of about 51.3 million tons, virtually the same as the preceding year. CIMPOR's sales in the domestic market exceeded 4.5 million tonnes, generating 1.9% growth in the domestic market, though an overall decrease of 2.6% (since no export transactions occurred in 2009, unlike in 2008).

Unit 2009 2008 Change 2007
Installed Capacity (1) 103
ton
6,280 6,070 3.5% 6,025
Use of Installed Capacity (2) 70.6% 78.5% 73.6%
Cement and Clinker Sales 103
ton
4,532 4,652 ‐ 2.6% 4,316
Market Share 8.8% 8.7% 9.1%
Concrete Sales 103
m3
1.274 1.241 2.6% 996
Aggregate Sales 103
ton
165 n.s.
Mortar Sales 103
ton.
209 192 8.8% 163
Turnover 106
euros
427.4 401.3 6.5% 322.0
Operating Cash Flow (EBITDA) 106
euros
123.1 102.3 20.3% 73.9
Operating Income (EBIT) 106
euros
88.4 70.1 26.2% 37.7
Capital Employed 106
euros
901.5 740.7 21.7% 842.4
Industrial Investment 106
euros
54.4 43.1 26.3% 35.5
Employees (31 Dec) unit 1,541 1,501 2.7% 1,395
Turnover/Employee 103
euros
280 280 ‐ 0.3% 243
EBITDA Margin 28.8% 25.5% 22.9%
EBIT Margin 20.7% 17.5% 11.7%

Brazil Business Area

(2) Clinker production / Installed capacity (clinker)

In the ready-mix concrete area, Cimpor Brasil achieved a sales volume of 1,274 cubic metres (2.6% up on the preceding year), largely thanks to the excellent performance of its plants in the metropolitan region of Sao Paulo and at Baixada Santos, where production increased by nearly 24%. Sales of aggregates, which began in 2009, stood at 165,000 tons, while sales of mortars grew by around 9% to total about 209,000 tons.

The Turnover of Cimpor Brasil amounted to approximately EUR 427 million, surpassing the figure recorded in 2008 by 6.5%. This result was not only due to the growth in sales but also a significant recovery of prices in both the cement and concrete segments. This Turnover combined with the containment of Operating Cash Costs to a level roughly the same as the preceding year, led to EBITDA growth of over 20%, raising it to almost EUR 123 million. As a result, the respective margin rose from 25.5% in 2008 to very close to 29% in 2009.

Investment exceeded 50 million and the most significant in the concrete segment were the installation of new batching plants and the acquisition of diverse transport and pumping equipment; while in the cement segment a series of investments focused on increasing the clinker production capacity of the Joao Pessoa, Candiota and Cajati plants as well as the grinding capacity of the Cezarina plant.

2.9. Mozambique

The Mozambican economy is forecast to have recorded a growth rate slightly above 6% in 2009 (less than 1 p.p. down on the previous year). The construction and public works sector remained very dynamic, both in terms of private investment and, above all, the construction and rehabilitation of key infrastructure. The inflation rate, benefiting from the fixing of fuel prices at the beginning of the year and the fall in the cost of imported products, declined from more than 10% in 2008 to only 3.5% in 2009.

Against this backdrop, cement consumption will have been close to one million tons (12% up on 2008), and including around 220,000 tons of imports. Imports were favoured by the substantial decrease of sea freight and removal of the customs surcharge at the end of 2008, and they drove a decrease of more than 5 base points in the market share of the CIMPOR Group, even though the Group's sales volumes reached an all-time high (777,000 tons).

Unit 2009 2008 Change 2007
Installed Capacity (1) 103
ton
685 710 ‐ 3.5% 735
Use of Installed Capacity (2) 47.7% 45.0% 41.2%
Cement Sales 103
ton
777 744 4.5% 665
Market Share 77.0% 82.6% 78.3%
Concrete Sales 103
m3
150.6 78.5 92.0% 64.4
Turnover 106
euros
80.9 77.4 4.6% 60.1
Operating Cash Flow (EBITDA) 106
euros
11.9 13.6 ‐ 12.5% 12.3
Operating Income (EBIT) 106
euros
6.3 8.8 ‐ 27.9% 10.9
Capital Employed 106
euros
53.8 51.8 3.8% 40.8
Industrial Investment 106
euros
12.1 9.0 34.2% 4.1
Employees (31 Dec) Unit 476 452 5.3% 408
Turnover/Employee 103
euros
175 176 ‐ 0.6% 141
EBITDA Margin 14.7% 17.6% 20.6%
EBIT Margin 7.8% 11.4% 18.1%

Mozambique Business Area

(2) Clinker production / Installed capacity (clinker)

The Group's involvement in large-scale infrastructure projects led to the sales of ready-mix concrete almost doubling to more than 150,000 cubic metres.

Although prices have increased to a certain degree, the devaluation of the local currency limited the growth in Turnover to 4.6%, not allowing it to surpass EUR 81 million. Moreover, given the operational problems that have continued to affect the proper functioning of the production apparatus, the resulting rise in maintenance costs and the need to import large quantities of clinker and cement to meet the growth of demand led to an almost 12.5% reduction of Operating Cash Flow and the decrease of the respective margin to below 15%.

Investments amounted to more than EUR 12 million, with the highlights being the conclusion of the assembly of a fabric filter on the clinker cooler at the Matola plant, the continuation of work to install two new grinding facilities (Matola and Dondo) and the optimisation of one of the grinding facilities in operation in at the Dondo plant.

2.10. South Africa

The South African economy reported a negative growth rate in 2009 (around 2.2%) for the first time in the last eighteen years. The construction sector registered a sharp slowdown. The inflation rate fell nearly 5 p.p. to slightly above 7%, which allowed the Central Bank to reduce the benchmark interest rate by the same amount, in an attempt to stimulate economic activity.

It is estimated that the domestic consumption of cement has declined by around 17%, to no more than 11.3 million tons, as a result of the slowdown. The sales of the CIMPOR Group, though less penalized, still fell around 13% to amount to approximately 1.43 million tonnes (nearly 20,000 tons of which comprised exports of cement and clinker to Mozambique).

Sales of ready-mix concrete in 2009 decreased 8.6%, equivalent to about 15,000 cubic metres, after having nearly doubled in 2008, thanks to the construction of the new airport in Durban. Sales of aggregates, benefiting from public investment in new roads and a new port at Durban, grew by 12.3% to more than 830,000 tons.

The significant rise in energy costs forced an increase in sale prices which, together with a certain appreciation of the rand, resulted in a 10.5% increase in Turnover. The increase in EBITDA was even more pronounced (around 50%), given that 2009 was the first full year of operation of the new clinker production line, which, contrary to what had been the norm in the first half of 2008, removed the need to buy clinker from others. As a result, the respective margin rose almost 13 p.p. to surpass 46%.

Unit 2009 2008 Change 2007
Installed Capacity (1) 103
ton
1,640 1,340 22.4% 1,025
Use of Installed Capacity (2) 80.4% 84.2% 85.5%
Cement and Clinker Sales 103
ton
1,432 1,641 ‐ 12.7% 1,450
Market Share 12.6% 12.2% 10.2%
Concrete Sales 103
m3
165 180 ‐ 8.6% 93
Aggregate Sales 103
ton.
831 740 12.3% 811
Turnover 106
euros
152.8 138.2 10.5% 129.8
Operating Cash Flow (EBITDA) 106
euros
70.4 46.2 52.5% 43.0
Operating Income (EBIT) 106
euros
58.9 38.9 51.5% 38.1
Capital Employed 106
euros
228.6 175.2 30.5% 156.3
Industrial Investment 106
euros
7.5 21.8 ‐ 65.5% 37.5
Employees (31 Dec) unit 595 638 ‐ 6.7% 580
Turnover/Employee 103
euros
246 225 9.6% 218
EBITDA Margin 46.1% 33.4% 33.1%
EBIT Margin 38.6% 28.1% 29.3%

South Africa Business Area

(2) Clinker production / Installed capacity (clinker)

The investment highlights are primarily the conclusion of the construction of a new clinker silo at the Simuma plant, the operational start-up of a new blender and a fly ash silo at the Newcastle plant, and the building of a new concrete plant at Phoenix.

2.11. China

In 2009, China's economy grew by around 8.5%, which corresponds to a slight slowdown on the previous year. Agricultural production was virtually stagnant and industrial activity grew by almost 11%, driven by an increase exceeding 30% in the level of investment in fixed capital. The cement sector was one of the major focal points of that investment. It is estimated that more than 176 new production lines have been installed, corresponding to an additional capacity of almost 200 million tons/year.

The latest projections indicate a growth in cement consumption very close to 20%, meaning that consumption will have surpassed the impressive figure of 1.6 billion tons (the equivalent of more than half of world consumption). The acquisition of the Liyang company at the end of 2008 and the start-up of the new Huaian grinding facility in September 2009 pushed the sales of cement and clinker of the CIMPOR Group to a total of about 3.6 million tons, an increase of almost 21% on 2008. However, the operational start-up of the new installed capacity, not offset by the promised closure of hundreds of obsolete plants still in operation, has led to sale prices being the object of strong pressure and which led to a significant drop of prices throughout the second half of the year. Hence, Turnover increased by around 23.5% (largely explained by the appreciation of the local currency), though the Cash Flow generated decreased by around 24.1%, not exceeding EUR 4.7 million and dragging the EBITDA margin down below 6%.

Unit 2009 2008 Change 2007 (1)
Installed Capacity (2) 103
ton
2,725 2,425 12.4% 1,210
Use of Installed Capacity (3) 101.7% 103.1% 103.1%
Cement and Clinker Sales 103
ton
3,610 2,989 20.8% 1,442
Turnover 106
euros
81.1 65.6 23.5% 23.9
Operating Cash Flow (EBITDA) 106
euros
4.7 6.3 ‐ 24.1% 1.8
Operating Income (EBIT) 106
euros
0.2 2.2 ‐ 93.1% 0.3
Capital Employed 106
euros
94.5 72.0 31.2% 45.9
Industrial Investment 106
euros
49.6 37.9 31.0% 0.4
Employees (31 Dec) Unit 1,051 648 62.2% 623
Turnover/Employee 103
euros
92 105 ‐ 11.8% 79
EBITDA Margin 5.9% 9.5% 7.7%
EBIT Margin 0.2% 3.3% 1.1%
(1) 2nd half of year

China Business Area

(2) Cement production capacity with own clinker (average over year)

(3) Clinker production / Installed capacity (clinker)

Of note besides the conclusion of the Huaian grinding facility (1.2 million tons/year) is the continuation of work to build the new Shanting plant - endowed with a production capacity with own clinker of 2.4 million tons per year - and the installation at the Cimpor Shandong plant of an electricity generating plant using a system to recover heat lost during the manufacturing process.

2.12. India

The GDP growth rate in India in 2009 will have registered approximately 6.5% (slightly below that of 2008), mainly due to increased public spending and the increased consumption of durable goods over the closing months of the year.

In India, as in China, a significant increase in cement supply capacity has occurred, which in December 2009 will have reached nearly 240 million tons/year (up 18% on the end of 2008). Even so, the strength of demand, which raised consumption by about 15%, allowed the cement sector to register utilization rates above 80%.

Even though the figures are not totally comparable, since Shree Digvijay was only integrated into the CIMPOR Group at the start of the second quarter of 2008, the sales volume of cement and clinker in 2009 (about 1.13 million tonnes including nearly 100,000 tons exported) underwent remarkable growth: overall growth was in the region of 70%, and the growth when only sales of cement in the domestic market are considered was approximately 66%.

Unit 2009 2008 (1) Change
Installed Capacity (2) 103
ton
1,180 875 34.9%
Use of Installed Capacity (3) 94.3% 81.8%
Cement and Clinker Sales 103
ton
1,128 664 69.8%
Market Share 0.5% 0.4%
Turnover 106
euros
52.9 32.3 63.9%
Operating Cash Flow (EBITDA) 106
euros
9.9 3.1 216.6%
Operating Income (EBIT) 106
euros
3.8 2.4 58.3%
Capital Employed 106
euros
87.2 72.2 20.7%
Industrial Investment 106
euros
3.7 1.6 128.8%
Employees (31 Dec) Unit 537 551 ‐ 2.5%
Turnover/Employee 103
euros
97 78 24.4%
EBITDA Margin 18.8% 9.7%
EBIT Margin 7.2% 7.4%
(1) April – December

India Business Area

(2) Cement production capacity with own clinker (average over year)

(3) Clinker production / Installed capacity (clinker)

Turnover was almost EUR 53 million (64% up on 2008) despite the lower sale prices at the end of the year, while Operating Cash Flow, benefiting from a significant drop in energy and fuel costs, more than tripled to very close to EUR 10 million. As a result, the EBITDA margin rose to almost 19% in 2009, when it did not reach 10% in 2008.

Investments totalled around EUR 3.7 million and they essentially comprised the conclusion of the construction of a clinker silo (with a 40,000 ton capacity) and another silo for storing fly ash.

2.13. Cape Verde

The latest estimates show that the GDP of Cape Verde will have grown at a rate of 3.5% in 2009, well below the rate recorded in 2008 (5.9%), due to the 5.7% decline in investment (as opposed to a 12% increase in 2008), the decrease in exports and a significant slowdown in private consumption.

The suspension and consequent stoppage of some important large-scale works, especially in the tourism sector, drove a 23% fall in cement consumption to slightly over 300,000 tons. Cement sales by the CIMPOR Group - 224,000 tons (wholly imported from Portugal) - underwent a roughly identical decrease (21.9%), as did sales of ready-mix concrete.

Sales of aggregates grew by almost 100% (to about 146,000 tons), due to the supply of works to expand the port of Praia on Santiago Island and despite various problems that continue to affect the exploration of quarries on the islands of Sal and Boavista.

Unit 2009 2008 Change 2007
Cement Sales 103
ton
224 287 ‐ 21.9% 242
Market Share 72.1% 71.2% 67.2%
Concrete Sales 103
m3
51.2 66.0 ‐ 22.5% 60.7
Aggregate Sales 103
ton.
145.7 74.0 96.8% 109.9
Turnover 106
euros
31.3 42.1 ‐ 25.6% 30.5
Operating Cash Flow (EBITDA) 106
euros
3.8 4.2 ‐ 9.5% 3.0
Operating Income (EBIT) 106
euros
2.9 3.2 ‐ 11.4% 2.2
Capital Employed 106
euros
19.6 19.1 2.1% 18.3
Industrial Investment 106
euros
1.1 1.0 17.4% 3.9
Employees (31 Dec) unit 127 138 ‐ 8.0% 169
Turnover/Employee 103
euros
242 264 ‐ 8.3% 223
EBITDA Margin 12.2% 10.0% 9.7%
EBIT Margin 9.2% 7.7% 7.3%

Cape Verde Business Area

Against this backdrop, and as result of the decline of cement prices (more than 6% in terms of annual average), consolidated Turnover fell to just over EUR 31 million (25.6% less than the preceding year). The consequent reduction of EBITDA was however much less pronounced (only 9.5%), due to a significant fall in transport and unloading prices, which allowed the EBITDA margin to increase by more than 2 percentage points: from 10.0% in 2008 to 12.2% in 2009.

3. CIMPOR TEC's Business

In 2009, the Quality Management System of CIMPOR TEC - Engenharia e Serviços Técnicos de Apoio ao Grupo, S.A. was certified by APCER (Portuguese Association of Certification) to be in accordance with NP EN ISO 2001:2000 standard.

Under the CIMPOR Performance Programme, and covering for the first time, the plants in China and India, the "Annual Benchmarking Programme" continued. This annual programme systematically compares around two hundred key indicators to measure the level of operating performance of the different cement manufacturing units. This work, which precedes the drawing up of the annual budget and the update of the business plan, allows the managers of the referred to units, supported by CIMPOR TEC, to pinpoint priority lines of action for each unit and the resulting measures to be taken over the next three years, setting these down in the "Performance Improvement Plan.

This Department, through its "Process and Environmental Engineering" area and "Geology and Raw Materials" area, also performed various studies in 2009 to evaluate the process conditions of the different manufacturing units. The aim is to identify the best alternatives for the implementation of the performance improvement actions, capacity increases or undertake new investment. It also carries out research work, operational planning and the control of raw material reserves. It also developed some important initiatives launched in 2008, such as the review of "Emissions Monitoring and Reporting Manual" and drawing up a" Manual for the Control and Reduction Techniques of NOx Emissions.

The Investments, Engineering and Equipment Department continued to provide throughout 2009 important coordination and technical assistance services to the different maintenance and investment projects undertaken by the Group, most of which are mentioned in the previous point.

The highlights of work of the Products, Quality and Technical Training Department, among many other activities, was: the completion of various audits and technical studies in virtually all business areas, the implementation of the Inter-laboratory Programme of the CIMPOR Group; tracking of partnership agreements signed with the Instituto Eduardo Torroja (Spain) for the development of belite cements, and with the Massachusetts Institute of Technology (USA) for the decoding of the nano-structure of Calcium-Silicate-Hydrate (with the signing of the contract at the end of year relative to the second phase of the project), the holding of 8 training sessions (totalling 392 hours, and training 87 technicians from different countries); and the organization of the 2nd CIMPOR Group Maintenance Seminar, on the subject of "Best Practices".

4. Sustainability and Social Responsibility

The CIMPOR Group's Sustainability Report for 2009, which is drawn up in accordance with the directives of the GRI – Global Reporting Initiative and which is published along with this report, refers to these matters in more detail, with special reference to the Group's environmental and social performance. We encourage our shareholders to take the opportunity to read the report (it is also available at our site www.cimpor.pt).

4.1. Sustainable Development

As stressed in reports in previous years, CIMPOR firmly believes in the concept of sustainable development – as a way of ensuring that economic, social and environmental concerns underlying its operations are treated on an equal footing – having been one of the cement companies that joined the WBCSD – World Business Council for Sustainable Development when it first launched in 1997.

In 1999, CIMPOR was one of the group of ten companies, from among the world's leading cement companies, that launched the project designated as CSI - Cement Sustainability Initiative and since then it has actively taken part in the development of this project and, in particular, the launch in July 2000 of a five-year action plan, "Our Agenda for Action", which identifies six key areas for this business sector in progressing towards a more sustainable society:

  • Climate protection and management of CO2 emissions;
  • Responsible use of raw materials and fuels;
  • Worker safety and health;
  • Emission monitoring and disclosure;
  • Impacts in terms of land use and at the local community level;
  • Reporting and communication.

Under the first of the above-stated areas, CSI completed in 2009 the development of a model to quantify and classify the possible future reductions of CO2 emissions ("Sectoral Approach" project), the results of which are available at www.wbcsdcement.org/sectoral. Also in 2009, the statistical information system "Getting the Numbers Right" was consolidated and expanded. This system, by measuring (managed by an independent body) the energy performance and emissions of CO2 of the cement industry worldwide (can be viewed at www.wbcsdcement.org/co2data), has been used as a basis for setting benchmarks in national and regional contacts with different stakeholders.

With the aim of improving the effectiveness and credibility of the Clean Development Mechanisms (CDM's) and encouraging cement sector companies to make greater use of this instrument, CSI proposed in 2009 the adoption of a new CDM methodology, which awaits approval by the Methodology Panel/CDM Executive Board of the United Nations Framework Agreement on Climate Change Also of note is the fact that the collaboration provided by the CSI to the International Energy Agency for the development of a technology roadmap for the sector, highlighting the different technologies available and/or emerging, which could likely contribute to the reduction of CO2 emissions, as well as the publication of the "Recycling of Concrete" report to promote this action.

The CIMPOR Group has actively participated in these projects and has internally proceeded to implement various actions related to those projects. In 2009, in particular, it endorsed with a number of other WBCSD member companies the "Energy Efficiency in Buildings" manifest under which it undertook to analyse the situation of its non-industrial buildings in terms of energy consumption and to take suitable measures for its reduction.

The following table summarises the application in 2009 of the second period of compliance with the Kyoto Protocol and the EU-ETS mechanism (European emissions trading scheme) at the different industrial units of the CIMPOR Group (Portugal and Spain):

Registered Licences
Plant / Ton CO2 Emissions* Awarded Difference
Portugal
Souselas 1,130,634 1,750,901 ‐ 620,267
Alhandra 1,237,934 1,748,681 ‐ 510,747
Loulé 343,410 503,429 ‐ 160,019
Cabo Mondego 23,075 50,886 ‐ 27,811
Total Portugal 2,735,053 4,053,897 ‐ 1,318,844
Spain
Toral de los Vados 583,735 695,311 ‐ 111,576
Oural 353,085 363,244 ‐ 10,159
Córdoba 463,278 590,748 ‐ 127,470
Niebla 337,396 376,466 ‐ 39,070
Total Spain 1,737,494 2,025,769 ‐ 288,275
General Total 4,472,547 6,079,666 ‐ 1,607,119

CO2 Emissions Licences

* Provisional values

The market slump in both countries is the main reason for the number of surplus licences, which allowed a total of 850,000 emissions allowances to be sold during 2009 (500,000 in Portugal and 350,000 in Spain).

In Portugal, the use of alternative CO2 neutral or partially neutral fuels, through the recovery of biomass and other common waste at the Alhambra and Loulé plants (the latter only from the last quarter of the year) allowed emissions to be reduced by about 44,700 tons.

4.2. Social Responsibility

The CIMPOR Group, under its sustainable development policy and aware of the need to link to the social environment it forms a part of and take on its responsibilities to the local populations, has developed a privileged relationship over the years with the communities living around its plants. It undertakes a range of actions of significant importance in the social, education, cultural and sports areas (in addition to those it develops in the environmental field).

Though it is usually the Group companies or its employees that have the initiative (as is the case with the "Connosco" programme), requests for support from a diverse range of collective and individual entities are frequently received. Such entities range from social institutions (e.g. schools, homes for the elderly, hospitals, churches and fire stations) to cultural associations, associations for the disabled, small enterprises in the start-up phase, universities requesting support for scientific projects and many other entities. CIMPOR seeks to respond to such requests, provided that they meet the characteristics defined by the Group - which mainly concern, besides the social and cultural value of the projects and the respective impact on the community in general, criteria such as geographical proximity to any of the Group's operational premises. Its support policy is also not reduced to simple financial assistance or the free supply of the products manufactured.

In effect, the support that the Group increasingly provides tends to value the real involvement with the communities in question, as well as partnerships with governmental and non-governmental organisations, in order to guarantee the existence of the competences required for the good development of the projects and to guarantee the long-term feasibility of the same.

Hence, particular importance is placed on the sense of responsibility demonstrated by the beneficiary entity in the manner in which the project is managed. Therefore, regular progress reports are requested from supported projects. These reports must justify how and the extent to which the funds are being used and encourage the donor companies not only to perform regular inspections of the work in progress but also to provide a general appraisal on the same.

5. Human Resources

In the Human Resources area, 2009 was marked by the formalisation of the CIMPOR Group's corporate strategy, through the creation and empowerment, within the respective Department, of a Corporate Management nucleus, designed to ensure in all business areas the uniformity of policies and corresponding management tools and policies, as well as compliance and coordination with Group strategy and objectives.

The main duties assigned to this nucleus consist of the provision of human resources management support tools, the monitoring of action plans developed in this regard by the various business areas and the establishment of the monitoring indicators of relevant practices in order to facilitate their comparison, dissemination and systematization.

The most notable actions implemented in 2009 are:

  • The consolidation of the database of the Group's employees in SAP HR software tool;
  • The systematization and standardisation of the organisational charts of all Group companies;
  • The uniformisation and extension of a set of key indicators (KPI) regarding human resources management;
  • The development of communication tools that enable the dissemination and sharing of information and of those indicators;
  • The drawing up and dissemination of a recruitment model for the Group, by defining a directory of skills and tools and tests to assess the potential of candidates.

In addition to these actions, several specific projects in some business areas were also developed, in particular the project to define and implement a new performance assessment system in Tunisia, the review of remuneration policy and careers in Egypt, and the implementation of SAP Payroll in Turkey and South Africa.

Also of note in 2009 was the major investment in relation to internal communication, which resulted in the development of the "Employee Portal" which, once implemented in Portugal and Spain in an initial stage, will be extended in the near future to cover the entire Group. It is basically a computer platform with several features that enable the dematerialisation of some processes (namely Performance Assessment, Training Management and Travel Management) and it thus significantly contributes to improving the efficiency of the services.

In the Recruitment and Integration area, the "Engineers' Pool" programme proceeded during 2009, which has the primary objective of providing young graduates with an opportunity to develop the necessary technical and behavioural skills to perform functions in the CIMPOR Group.

In the same vein, and at the level of the different business areas, various training courses were also conducted which focused on behavioural, functional and technical aspects, and which were primarily aimed at acquiring the skills and knowledge essential to the sustainability and growth of the Group's business.

The CIMPOR Group's workforce at the end of 2009 was 8,693 workers, spread over 13 countries, as detailed in the following table:

Permanent Term
Contract
Workers
On Loan
Total
Central Services (2) 93 3 4 100
Portugal 1,293 111 3 1,407
Spain 1,032 83 4 1,119
Morocco 188 12 5 205
Tunisia 202 4 3 209
Egypt 278 207 8 493
Turkey 821 2 2 825
Brazil 1,541 0 0 1,541
Peru 2 2 0 4
Mozambique 382 77 17 476
South Africa 517 75 3 595
China 59 987 5 1,051
India 536 0 1 537
Cape Verde 35 91 1 127
Trading 4 0 0 4
Total 6,983 1,654 56 8,693

Number of Employees per Business Area (31 Dec. 2009) (1)

(1) Companies included in the consolidation

(2) Holding, CIMPOR Inversiones, and CimporTec

In relation to the number of employees at 31 December 2008 (without considering the staff of the companies acquired on that date in the Canary Islands), there is an increase of 324 employees, which is basically explained by the integration of the referred to companies, the business expansion in China and the increase of the number of concrete plants in Mozambique and especially in Brazil.

In the Group as a whole, the Brazil business area became the largest in terms of workforce, closely followed by the business areas of Portugal, Spain and China. These four countries together account for almost 60% of all the employees of the CIMPOR universe.

Cement clearly remains the main activity of the Group, employing 5884 employees (68% of the total):

The Group staff is characterized by being mostly male (88%) mostly concentrated between the ages of 35 and 54 years (56%) and with a mean education level mostly of basic and secondary education (63%).

6. Occupational Health and Safety

In 2009, the CIMPOR Group continued in its efforts to continuously improve in terms of Occupational Health and Safety (OHS), continuing the programmes carried over from previous years and developing new measures to further consolidate the results achieved in the meantime, to optimise procedures, to adopt the best practices and to ensure the adequacy of its own organisational structure in order to provide all employees with the necessary conditions for the healthy and safe performance of their roles.

In March, the 2nd Meeting of Occupational Health and Safety Co-ordinators of the CIMPOR Group was held. This meeting was attended by 13 OHS coordinators - representing the business areas of Portugal, Spain, Morocco, Tunisia, Turkey, Brazil, Mozambique, South Africa and Cape Verde. At that meeting the importance of their mission over the entire chain of command was emphasized, with particular attention to their role of supporting the development of measures to improve the safety conditions of employees and reduce accident rates.

The focus on communication was significantly strengthened, with the aim of giving greater visibility to the whole OHS issue and strengthening the health and safety culture at the Group's different premises. Besides the widespread dissemination of all fatal accidents at work (workers directly and indirectly employed and third parties) - which has proven to be of enormous importance for prevention and corrective measures - serious accidents at work are also now systematically reported. In the near future, "Good Practices" and "SOS Alerts" will be published.

Another important milestone in 2009 was the implementation of the internal audit program implemented in several organisational units of Portugal, Spain, Morocco, Tunisia, Brazil and South Africa, by multi-disciplinary teams of four members from various countries.

Moreover, and following the commitments made through the Cement Sustainability Initiative (CSI) as regards guaranteeing transparency, consistency and reliability of the OHS Performance Indicators communicated to the different stakeholders, once again the verification of data relative to the preceding year was carried out by an independent, internationally recognized company meeting all the requirements demanded by the CSI. The check covered 34 organisation units, encompassing the cement, concrete, aggregates and other activities, in a total of nine countries.

Over the last three years, the number of fatal accidents in the workplace has been steadily declining. Traffic accidents, both on and outside the premises, continue to be the main cause of deaths. In 2009, eight fatal victims were recorded - one direct employee and seven workers employed indirectly - and the number of accidents caused by falling from heights substantially increased.

The countries most affected during this period (2007-2009) were clearly Mozambique, Egypt and Brazil, each with six fatalities.

Another important indicator is the Frequency Rate (number of new cases of occupational accidents implying an absence from work of more than one day per one million hours worked), which has likewise been falling:

The development in 2009 of this indicator takes on particular significance in the fact that it is quite demonstrative of the correct adaptation of work to the strategic objectives undertaken in regards to OHS, as well as the efforts undertaken with the same aim by all employees regardless of their sector of activity.

CIMPOR -- CIMENTOS DE PORTUGAL, SGPS, S.A. | GROUP 111

7. Financial and Risk Management Policy

7.1. Financial Debt Management

The curbing of the investment costs at relatively more moderate levels than in previous years and, in particular, the absence of takeovers of significant value, has resulted in a reduction of net financial debt in 2009 by approximately EUR 164 million to EUR 1.699 billion at the year's end.

For similar reasons, there was no need to set up new financing operations of minimal relevance, since the debt was serviced by using the cash flow generated and the short-term credit lines. This, in turn, ensured that the Group was not affected by the negative impact of high spreads practised in the market, especially during the first half of the year.

With the aim of restructuring financial debt by contracting longer-term instruments, all the documentation for a new Medium Term Notes Programme, with a limit on debt issuance of EUR 2.5 billion was completed and registered in December 2009. The structure of that Programme is identical to the previous programme, allowing access to European bond market as soon as such is deemed appropriate.

With the same goal of lengthening the maturity of the debt, an extension on the EUR 300 million bilateral loan contracted in August 2008 and maturing in June 2010 was agreed with Banco Santander Totta, until December 2012. This loan is now divided into three tranches of EUR 100 million each, maturing at the end of each of the years from 2010 to 2012.

In addition to the maintenance and/or increase the limits of the lines of short-term credit contracted by the various business areas and intended to support their cash requirements, the liquidity situation of the Group was considerably strengthened by the extension, in Portugal, of the underwritten Commercial Paper Programmes ceiling, from EUR 50 million to EUR 435 million.

Throughout the first half of the year, the difficulties to access credit and the significant increase of spreads, along with fears that many corporates might default - due to chokes in their financing process or a simple breach of covenants - led ratings agencies to exert strong pressure on most of the companies it analysed to reduce their debt levels and improving their liquidity ratios.

CIMPOR did not escape this pressure, and it even suffered earlier this year a downgrade by Standard & Poor's to BBB - with negative outlook. In view of this situation, and in addition to the measures mentioned above to enhance the Group's liquidity, CIMPOR also decided to raise the maximum ratio of Net Debt / EBITDA imposed by some of its debt instruments from 3.5 to 4.0, in particular the U.S. Private Placements issued in 2003. This initiative, although it entailed extra financial costs and demanded a down-payment of USD 50 million, proved decisive since Standard & Poor's revised CIMPOR's outlook in September from "negative" to "stable".

In any event, the Group's excellent operating performance, particularly in relation to its peers, and the gradual reduction of its level of debt ensured that compliance with the financial covenants established in its debt instruments has never in doubt.

The financial debt of CIMPOR at the end of 2009 totalled around EUR 2.138 billion in gross terms, basically divided between three types of instrument: a Eurobond issue (EUR 600 million) in 2004, two US Private Placements issues (USD 354 million) placed in 2003 and sundry bank loans totalling more than EUR 1.2 billion.

The financial debt management policy, favouring floating rate instruments, and the downward movement of the Euribor rates - which began in the final months of 2008 and lasted throughout 2009 - has allowed, despite the increase in consolidated debt of about 16.4% (in terms of average annual balance), net interest costs to not increase by more than EUR 2 million. Excluding the impact of changes in fair value of debt, there was even a reduction of over EUR 30 million.

The following table is a summary of the data regarding major financial transactions recorded in the consolidated liabilities of the Group:

Financing Curren Value (103
)
Start Maturity Interest Rate
CIMPOR Inversiones
Bilateral Loan
EUR 280,000 Nov 2007 Nov 2012 Euribor + 0.300%
Bilateral Loan EUR 200,000 Jan 2008 Jan 2013 Euribor + 0.300%
Bilateral Loan EUR 112,500 Jun 2008 Jun 2011 Euribor + 0.950%
Bilateral Loan EUR 300,000 Aug 2008 Dec 2012 Euribor + 0.9% to1.85%
Impact of IAS 39 EUR ‐ 557 - -
Total EUR 891,943
CIMPOR B.V.
Eurobonds EUR 600,000 May 2004 May 2011 4.500%
US PP 10y USD 140,789 Jun 2003 Jun 2013 5.750%
US PP 12y USD 213,211 Jun 2003 Jun 2015 5.900%
Impact of IAS 39 EUR ‐ 17,665
Total EUR 893,186
Portugal
EIB Financing EUR 40,000 Sep 2003 Sept 2015 EIB Basic Rate
Commercial Paper EUR 200 Dec 2009 Jan 2010 1.990%
Sundry Financing EUR 3, 882 - -
Total EUR 44,082
Spain
Sundry Financing EUR 196,618 - - -
Overdrafts EUR 21 - - -
Total EUR 196,639 - - -
Morocco
Bilateral Loan MAD 18,786 Sep 2006 Sep 2013 5.450%
Overdrafts MAD 68,372 - -
Total EUR 7,680
Turkey
Overdrafts TRY 106,655 - -
Total EUR 49,499
Brazil
Sundry Financing BRL 23,738 - -
Total EUR 9,452
Mozambique
Overdrafts MZN 15,670 - -
Total EUR 355
South Africa
Overdrafts ZAR 15,046 - -
Total EUR 1,411
China
Sundry Financing HKD 258,405
Sundry Financing CNY 111,679 - -
Total EUR 34,487
Cape Verde
Sundry Financing EUR 161 - -
Bilateral Loan CVE 1,144 May 2006 May 2010 8.000%
Overdrafts CVE 133,927 - -
Total EUR 1,386
Various
Operational Leasings EUR 7,739 - - -
Group Total EUR 2,137,860

Financial Debt as at 31 December 2009

It should also be noted that following the takeover bid for the entire share capital of CIMPOR, launched at the end of the year by the Brazilian company Companhia Siderurgica Nacional, Standard & Poor's decided to place the rating under observation (with negative outlook), given the rating of the entity making the takeover bid.

7.2. Risk Management Policy

7.2.1. Financial Risk Management

As part of its normal operations, the CIMPOR Group is faced with various financial risks as a result of exposure to fluctuations in the local currency exchange rates in countries in which it operates. It is also exposed to euro and US dollar interest rate changes, the main currencies in which its financial debt is held.

To mitigate the potential impact of any unfavourable changes to these factors, management policy abides by the following basic principles:

  • Centralisation of all risk management in the holding company, which analyses and approves transactions (Executive Committee) and carries them out and monitors them (Financial Operations Area of the Corporate Centre);
  • Analysis of the Group's global exposure to different types of financial risk, and identification of potential new sources of uncertainty arising from the normal process of growth and internationalisation;
  • Search for and development of solutions to cover identified risks, and never, as a rule, merely for trading purposes, without there being underlying assets or liabilities;
  • Selection of hedging instruments based on careful analysis and assessment of the risk/return ratio of the various alternatives available on the market for the type of risk in question;
  • Search, whenever possible, for natural hedging by contracting financing in the local currency of the various countries where the Group operates;
  • Regular monitoring of the risks and costs relating to the different operations contracted, in particular by calculating their market value and analysing market value sensitivity to changes in the main variables.

With respect to this last point, attention is drawn to the use of a particularly relevant statistical measure for derivative portfolio management, known as Earnings-at-Risk. This indicator forecasts the portfolio's maximum negative impact in terms of results for a three-month time frame, with 95% accuracy. It provides an ongoing analysis for the portfolio and assesses the extent to which this impact may or may not be lessened by contracting certain operations.

Regarding currency exchange risk management, the two cross-currency swaps (USD/EUR) associated with the private placements issued in June 2003 on the US market were kept. The policy of hedging the risks relative to the intra-group loans contracted by Group companies operating outside the Euro Zone was also maintained, provided the local market conditions permit such.

In the area of interest rate risk, the Group continued its dynamic management of the portfolio of derivatives not classified as hedging instruments, aiming to minimise its global cost and to balance the cash flow/market value ratio.

7.2.2. Asset Risk Management

In 2009, the principles and criteria for the management of the Group's operational risks have not undergone large-scale changes, and the policy of self-insurance has been maintained through the placement of "large risks" with international reinsurers.

When renegotiating insurance policies within the CIMPOR Group's global programmes, and despite the fact that the main companies involved continued to make very demanding conditions for their renewal, substantial reductions in the premiums for material damage and third party liability policies were once again obtained.

The Group's "captive" reinsurance company – CIMPOR Reinsurance, based in Luxembourg – continued to directly assume material damage and machinery breakdown risks, as well as third party liability and product liability risks. The indemnity limits borne by that company remained at EUR 250,000 for the latter risks, which for the first two risks it rose from EUR 2 million to EUR 3 million. Above these sums, cover remained with international reinsurance companies.

In 2009 the global third party liability insurance of CIMPOR's directors and managers was renegotiated, and even with the difficult market conditions the same cover and premiums as in previous years were maintained.

Personal, vehicle and other miscellaneous insurance cover required by the different business areas was kept with local firms, in accordance with the specific laws of each country and the contractual conditions of employees.

8. Outlook for 2010

8.1. Overall

The prospects for the world economy in 2010 are still quite uncertain. Although the latest projections revise previous estimates upwards, serious doubts about the ability of the private sector in developed countries to function as a motor for the economy continue to loom, as the removal of governmental stimuli, which induced some recovery in demand in the second half of 2009, is carried out.

In any case, there is more or less consensus that after the shrinkage registered in the preceding year, the world economy should grow at a rate of between 3.5 and 4.0%, driven mainly by the pace of expansion of emerging economies (estimated at around 6.5%). The USA is expected to grow by around 3% and the recovery in the Eurozone is likely to be slower and more gradual, pointing to growth of just 1%. In China, by contrast, 2010 should mark the return to a growth rate close to 10%.

Against this backdrop, it will certainly be the emerging economies, especially the Asian countries, that will continue to cause the growth of cement consumption. A recovery in the construction sector of the most developed countries is unlikely before the second half of the year, even a slight one, particularly since weather conditions in the first few months of 2010 were generally quite adverse.

8.2. CIMPOR Group

The CIMPOR Group views 2010 with some optimism, justified by expectations relative to the expansion of some of the markets in which it operates (Egypt, Brazil, Mozambique, China and India), the greater production capacity as a result of investments recently concluded or concluding in 2010 (Turkey, Brazil and China) and also the impact of cost reductions as a result of the restructuring carried out in 2009 in the concrete and aggregates areas (Portugal and Spain).

In Portugal, the market should only undergo any form of recovery during the second half of the year, though it is estimated that greater exports of clinker and cement may lead to significant growth in sales. Even so, given the expected increase in energy costs and lower margins generated by exports, its impact on EBITDA will probably be weak.

In Spain, everything indicates a further drop in cement consumption to around 25.5 million tonnes (11% less than in 2009), in a context of declining GDP by around 0.5% and, in particular, the shrinkage of the construction sector by close on 6.5%. In the CIMPOR Group, given the costs incurred last year with the restructuring of the concrete and aggregates areas and the consequent reduction in the current year of staff costs, it is expected that, despite a lower volume of sales, EBITDA will register some growth. Nonetheless, such will depend to a great extent on changes to sale prices, the development of which still remains quite uncertain.

The excellent agricultural year in 2009 in Morocco and Tunisia is unlikely to be repeated, which can only affect domestic demand. Even though the consumption of cement should register relatively modest growth rates (around 3%), it is likely that the increase in Group sales in the specific case of Morocco will be more significant, given the recent expansion of its grinding capacity. In Tunisia, however, the limitations placed on exports and the type of planned investments is likely to prevent the growth of sales. Nevertheless, the expected increase in cement prices and the enlargement of the Group's business sector to the aggregates segment should provide an identical increase in EBITDA, in relative terms, as that estimated for Morocco.

In Egypt, demand for cement continues to remain very robust, translated into growth rates of around double digits - a pace of expansion that CIMPOR will have difficulty in keeping up with, even resorting to the import of clinker, not only because of the limitations of its grinding capacity but also due to the operational start-up of new units.

In Turkey the expected economic recovery will not fail to positively affect the construction sector and it is expected that cement consumption, driven by new investments in infrastructure and hydroelectric power projects, will reverse the downward trend of recent years. This will, even with the possible recovery of external demand, still be insufficient to absorb the country's excess capacity. It is therefore very likely that the enormous pressure on sale prices experienced in 2009 will continue in the current year, contributing, together with the increase of energy costs to the stagnation of the profitability of operations at low levels.

The rate of GDP growth in Brazil is expected to reach 5%, and cement consumption will increase at roughly the same pace. The CIMPOR Group, benefiting from the conclusion during 2010 of various projects to expand capacity, will be in a position to accompany this increase in demand, which, along with some reduction in costs and the likely appreciation of local currency against the euro, should drive an increase in EBITDA of at least EUR 30 million.

In Mozambique, the public works ready to start and the continuation of some private projects currently underway should continue to sustain the growth of the construction sector and, accordingly, cement consumption. However, given the limitations of production and the recent devaluation of the local currency, no major improvement to the profitability of this business area are envisaged.

In South Africa, the latest estimates show a significant decrease in cement consumption as a result of the completion of a number of major works related to the country's organisation of the FIFA World Cup (to be held in mid-2010). Nonetheless, the expected appreciation of the rand should prevent the decrease of the Group's EBITDA when reported in the European currency.

In both China and India, the current prospects are for some acceleration of growth, and it is expected that cement consumption will register double digit increases. However, significant increases in installed capacity are also expected in both countries, which, after the sharp drop of sale prices in the second half of 2009, will certainly hinder recovery. In India the development of the Group's results will largely depend on this latter factor, and possibly undertaking some export operations. In China, recent increases in clinker and cement production capacity (by a total of 1.8 million and 3.6 million tons/year, respectively), derived from the entry into operation of the Huaian grinding facility and, in 2010, the new Shanting plant, will leverage the growth of the Group's EBITDA, though this will largely depend on the confirmation or not of the promised closure of various competing units that are still in operation.

In Cape Verde, like in 2008, public investment - primarily focused on road construction, the expansion of port infrastructures and water and electricity production and distribution - is probably insufficient to offset the continued decline of private investment. Consequently, it is possible that the results generated in this business area by the Group companies will remain in decline.

9. Subsequent Events

The following significant events took place after the end of the 2009 financial year:

  • The revision of the takeover bid by the Brazilian company Companhia Siderúrgica Nacional (CSN) for all the shares representing the share capital of CIMPOR, with an increase of the price offered (from 5.75 euros to 6.18 euros per share) and change to the condition for the success of the operation (from 50% of the capital plus one share to one-third of the capital plus one share).
  • The holding of a Special Session of the Regulated Market on 23 February to determine the outcome of this operation - it was found to have been unsuccessful.
  • Signing with the Economic Defence Board (CADE) of Brazil, and at its request, of an "Agreement to Preserve Operation Reversibility" (APRO), under which CIMPOR commits to maintaining the status quo of its operations in that country until a final decision by CADE on "Business Concentration Acts" relative to the agreements concluded by Votorantim Cimentos S.A. and Camargo Corrêa S.A. which resulted in the current shareholder structure of CIMPOR.
  • Founding of the Bencapor Produção de Inertes, S.A. company (Portugal), 50% owned by the CIMPOR Group.
  • Reduction of the nominal value of the shares representing the share capital of Asment de Témara from MAD 500 to MAD 50 and the subsequent share capital increase from MAD 171,875 to MAD 412.5 million by incorporation of reserves, through the issue of 4,812,500 new shares.
  • Reduction of the share capital of Société Les Ciments de Jbel Oust (Tunisia) from TND 84,299,500 to TND 71,753,600 through the amortization of 125,459 shares held by Cimpor Inversiones, S.A..
  • Amreyah Cement Company, S.A.E. (Egypt) obtains a licence to burn alternative fuels.
  • The shares representing the share capital of Amreyah Cement Company, S.A.E. are taken off the stock exchange for not complying with free float minimum values.
  • A new semi-mobile concrete plant is installed in Ankara (Turkey).
  • The Quality Management System of the Matola plant (Mozambique) obtains certification according to the ISO 9001:2008 standard.
  • The contract to install a new cement grinding unit at the Matola plant is signed.
  • Start up of the new Shanting plant (China) with a cement production capacity, with own clinker, of 2.4 million tons/year.

Lisbon, 7 April 2010

THE BOARD OF DIRECTORS

Ricardo Manuel Simões Bayão Horta

Luís Eduardo da Silva Barbosa Vicente Árias Mosquera
António Sarmento Gomes Mota José Manuel Baptista Fino
Jorge Humberto Correia Tomé José Enrique Freire Arteta
Jorge Manuel Tavares Salavessa Moura Luís Filipe Sequeira Martins
Manuel Luís Barata de Faria Blanc António Carlos Custódio de Morais Varela
Luís Miguel da Silveira Ribeiro Vaz Pedro Manuel Abecassis Empis

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS

of Comprehensive Income for the years ended 31 December 2009 and 2008

(Amounts stated in thousand of euros)

(Translation from the Portuguese original -- Note 52)

Notes 2009 2008
Operating income:
Sales and services rendered 7 2,085,498 2,088,862
Other operating income 8 62,914 65,601
Total operating income 2,148,412 2,154,464
Operating expenses:
Cost of goods sold and material used in production 9 (578,921) (630,936)
Changes in inventories of finished goods and work in progress (1,968) 26,954
Supplies and services (676,553) (708,514)
Payroll costs 10 (249,610) (224,875)
Depreciation, amortisation and impairment losses on goodwill, (184,573)
tangible and intangible assets 7, 17 and 18 (226,256)
Provisions 7 and 36 (2,770) (9,129)
Other operating expenses 11 (35,432) (30,749)
Total operating expenses (1,771,510) (1,761,822)
Net operating income 7 376,901 392,642
Net financial expenses 7 and 12 (52,149) (49,189)
Share of profits of associates 7, 12 and 19 156 (86,735)
Other investment income 7 and 12 (11,117) 1,537
Profit before income tax 7 313,791 258,255
Income tax 7 and 13 (68,113) (24,949)
Net profit for the year 7 245,679 233,306
Other comprehensive income:
Cash flow hedging financial instruments 3,469 3,265
Available-for-sale financial assets (167) (1,736)
Actuarial gain and loss on employee benefit plans 31, 32 and 33 (4,091) (3,167)
Currency translation adjustments 202,963 (330,755)
Adjustments in investments in associates (3,296)
Results recognised directly in equity 202,174 (335,689)
Total comprehensive income for the year 447,853 (102,383)
Net profit for the year attributable to:
Equity holders of the parent 15 237,025 219,441
Minority interest 7 and 33 8,653 13,865
245,679 233,306
Total comprehensive income for the year attributable to:
Equity holders of the parent 444,453 (118,972)
Minority interest 3,399 16,589
447,853 (102,383)
Earnings per share:
Basic 15 0.36 0.33
Diluted 15 0.36 0.33

The accompanying notes form an integral part of the consolidated financial statements for the year ended 31 December 2009.

CONSOLIDATED STATEMENTS

of Financial Position at 31 December 2009 and 2008

(Amounts stated in thousand of euros)

(Translation from the Portuguese original -- Note 52)

Notes 2009 2008
Non-current assets:
Goodwill 16 1,352,251 1,277,008
Intangible assets 17 69,645 42,530
Tangible assets 18 2,127,773 2,007,926
Investments in associates 7 and 19 24,992 97,663
Other investments 20 9,939 131,395
Accounts receivable-other 22 11,871 10,883
Taxes recoverable 23 28,033 16,349
Other non-current assets 24 32,188 33,874
Deferred tax assets 25 107,305 103,039
Total non-current assets 3,763,996 3,720,666
Current assets:
Inventories 26 294,300 327,849
Accounts receivable-trade 27 264,202 313,443
Accounts receivable-other 22 28,855 29,633
Taxes recoverable 23 52,660 43,349
Cash and cash equivalents 46 439,182 169,564
Other current assets 24 25,912 10,751
Non-current assets held for sale 21 58,256
Total current assets 1,163,366 894,589
Total assets 7 4,927,362 4,615,255
Shareholders' equity:
Share capital 28 672,000 672,000
Treasury shares 29 (39,905) (41,640)
Currency translation adjustments 30 58,587 (149,706)
Reserves 31 287,456 283,112
Retained earnings 32 615,340 521,858
Net profit for the year 15 237,025 219,441
Equity before minority interest 1,830,503 1,505,065
Minority interest 33 92,488 110,720
Total shareholders' equity 1,922,991 1,615,786
Non-current liabilities:
Deferred tax liabilities 25 233,853 197,388
Employee benefits 34 19,984 16,642
Provisions 36 153,704 152,374
Loans 37 1,637,157 1,911,130
Obligations under finance leases 38 4,784 4,670
Accounts payable-other 41 28,037 19,515
Taxes payable 23 984 1,499
Other non-current liabilities 42 122,418 115,193
Total non-current liabilities 2,200,921 2,418,411
Current liabilities:
Employee benefits 34 4,552 4,685
Provisions 36 962 2,140
Loans 37 453,523 201,501
Obligations under finance leases 38 2,955 2,102
Accounts payable-trade 43 182,734 207,187
Accounts payable-other 41 61,051 58,986
Taxes payable 23 37,096 41,135
Other current liabilities 42 60,576 63,325
Total current liabilities 803,450 581,059
Total liabilities 7 3,004,371 2,999,470
Total liabilities and shareholders' equity 4,927,362 4,615,255

The accompanying notes form an integral part of the consolidated financial statements for the year ended 31 December 2009.

CONSOLIDATED STATEMENTS

of Changes in Shareholders' Equity for the years ended 31 December 2009 and 2008

(Amounts stated in thousand of euros)

(Translation from the Portuguese original -- Note 52)

Share purchase options
Dividends
Transfer to legal reserves and retained earnings
Fair value allocation in acquired subsidiaries
Variation in financial investments and others
Appropriation of consolidated profit of 2007:
Total comprehensive income for the year
(Purchase) / Sale of treasury shares
Results recognised directly in equity
Consolidated net profit for the year
14, 32 and 33
32 and 33
31 and 32
31 and 32
29 and 31
5 and 33
7
















(21,713)







(333,541)
(333,541)


722


(4,578)
(4,578)
12,565
2,453



(294)
(294)
(153,151)
(450)
(225)
291,508






(304,073)
219,441
219,441

2,003

(338,413)
(118,972)
(153,151)
(20,991)
(225)
219,441
Balances at 1 January 2009 672,000 (41,640) (149,706) 283,112 521,858 219,441 1,505,065
Consolidated net profit for the year 7 237,025 237,025
Results recognised directly in equity 208,293 (865) 207,428
Appropriation of consolidated profit of 2008:
Total comprehensive income for the year
208,293 (865) 237,025 444,453
Transfer to legal reserves and retained earnings 31 and 32 7,700 211,741 (219,441)
Dividends 14, 32 and 33 (122,777) (122,777)
(Purchase) / Sale of treasury shares 29 and 31 1,735 (200) 1,534
Share purchase options 31 and 32 (2,291) 4,552 2,261
Fair value allocation in acquired subsidiaries
Variation in financial investments and others
32 and 33
5 and 33
Balances at 31 December 2009
(39,905)
(34) (34)

CONSOLIDATED CASH FLOW STATEMENTS

for the years ended 31 December 2009 and 2008

(Amounts stated in thousand of euros)

(Translation from the Portuguese original -- Note 52)

Notes 2009 2008
Operating activities:
Receipts from clients 2,452,178 2,447,674
Payments to suppliers (1,350,714) (1,535,342)
Payments to employees (243,746) (223,001)
Cash flows generated by operations 857,717 689,331
Income tax recovered/(paid) (62,876) (63,144)
Other payments related to operating activities (179,482) (196,820)
Cash flows from operating activities
(1)
615,359 429,367
Investing activities:
Receipts relating to:
Changes in consolidation perimeter 5 5,368 429
Investments 46 128,904 9,018
Tangible assets 6,112 6,335
Investment subsidies 2,722 868
Interest and similar income 13,730 34,683
Dividends 214 1,513
Others 597 137
157,647 52,983
Payments relating to:
Changes in consolidation perimeter 5 (3,670) (316,218)
Investments 46 (10,862) (36,295)
Tangible assets (236,628) (305,887)
Intangible assets (7,616) (6,127)
Others (323)
(258,776) (664,850)
Cash flows from investing activities
(2)
(101,128) (611,867)
Financing activities:
Receipts relating to:
Loans obtained 46 320,354 1,156,341
Sale of treasury shares 1,504 4,856
Others 2,637
324,495 1,161,197
Payments relating to:
Loans obtained 46 (362,178) (1,066,468)
Interest and similar costs (91,269) (114,691)
Dividends 14 (122,777) (153,151)
Purchase of treasury shares (25,586)
Others (13,867) (16,858)
(590,091) (1,376,754)
Cash flows from financing activities
(3)
(265,596) (215,557)
Variation in cash and cash equivalents (4) = (1) + (2) + (3) 248,635 (398,057)
Effect of currency translation and other non monetary transactions 5,544 5,255
Cash and cash equivalents at the beginning of the year 46 126,479 519,280
Cash and cash equivalents at the end of the year 46 380,657 126,479

The accompanying notes form an integral part of the consolidated financial statements for the year ended 31 December 2009.

1.
Introductory note 129
2.
Summary of significant accounting policies 129
2.1. Basis of presentation 129
2.2. New standards and interpretations, revisions and amendments adopted by the European Union 130
2.3. Critical accounting judgements/estimates 132
2.4. Consolidation principles 133
2.5. Intangible assets 136
2.6. Tangible assets 136
2.7. Leases 137
2.8. Impairment of non-current assets, excluding goodwill 138
2.9. Foreign currency assets, liabilities and transactions 138
2.10. Borrowing costs 139
2.11. Government grants 139
2.12. Inventories 140
2.13. Non-current assets held for sale 140
2.14. Segment reporting 140
2.15. Balance sheet classification 140
2.16. Net operating income 140
2.17. Provisions 141
2.18. Financial instruments 141
2.19. Retirement benefits 145
2.20. Healthcare benefits 145
2.21. Share-based payments 146
2.23. Revenue recognition and accruals basis 146
2.24. Impairment and adjustments of financial assets 147
2.25. Income tax 147
2.26. Earnings per share 148
2.27. Subsequent events 148
2.28. CO2 emission licences -- Emissions market 148
3. Changes in policies, estimates and errors 149
4. Companies included in the consolidation 150
4.1. Companies consolidated in accordance with the full consolidation method 150
4.2. Associated companies 162
4.3. Companies consolidated in accordance with the proportional method 163
5. Changes in the consolidation perimeter and fair-value allocation 164
6. Exchange rates used 168
8. Other operating income 172
9. Cost of goods sold and material used in production 172
10. Payroll costs 173
11. Other operating expenses 174
12. Net financial expenses 175
13. Income tax 176
14. Dividends 178
15. Earnings per share 178
16. Goodwill 179
18. Tangible assets 182
19. Investments in associates 183
20. Other investments 185
21. Non-current assets held for sale 186
22. Accounts receivable - other 186
23. Taxes recoverable and taxes payable 187
24. Other current and non-current assets 188
25. Deferred taxes 189
26. Inventories 190
28. Share capital 192
29. Treasury shares 192
30. Currency translation adjustments and hedges 193
31. Reserves 193
32. Retained earnings 194
33. Minority interest 194
34. Employee benefits 194
38. Obligations under leases 208
39. Derivative financial instruments 208
40. Financial risk management 213
41. Accounts payable - other 220
42. Other current and non-current liabilities 220
43. Accounts payable - trade 221
44. CO2 emission licences 221
45. Financial assets and liabilities according to IAS39 222
46. Notes to the consolidated cash flow statements 223
47. Related parties 224
48. Contingent liabilities, guarantees and commitments 225
49. Auditors fees and services 227
50. Subsequent events 227
51. Financial statements approval 228
52. Note added for translation 229

Notes to the consolidated financial statements

For the year ended 31 December 2009 (Amounts stated in thousands of euros) (Translation of notes originally issued in Portuguese -- Note 52)

1. Introductory note

Cimpor - Cimentos de Portugal, SGPS, S.A. (''Cimpor'' or ''the Company'') was incorporated on 26 March 1976, with the name Cimpor - Cimentos de Portugal, E.P.. The Company has undergone several structural and legal changes, which have resulted in it becoming the parent company of a Business Group with operations in Portugal, Spain, Morocco, Tunisia, Egypt, Turkey, Brazil, Peru, Mozambique, South Africa, China, India and Cape Verde (the ''Cimpor Group" or ''Group'').

Cimpor Group's core business is the production and sale of cement. The Group also produces and sells aggregates and mortar in a vertical integration of its businesses.

The Cimpor Group investments are held essentially through two sub-holding companies; (i) Cimpor Portugal, SGPS, S.A., which holds the investments in companies dedicated to the production of cement, mortar, concrete and related activities in Portugal; and (ii) Cimpor Inversiones, S.A., which holds the investments in companies operating abroad.

2. Summary of significant accounting policies

2.1. Basis of presentation

The accompanying financial statements were prepared on a going concern basis from the books and accounting records of the companies included in the consolidation (Note 4), maintained in accordance with local general accepted accounting principles, restated in the consolidation process to the International Financial Reporting Standards as adopted by the European Union, effective for the years beginning 1 January 2009. Such standards include the International Financial Reporting Standards (''IFRS'') issued by the International Accounting Standards Board (''IASB''), the International Accounting Standards (''IAS'') issued by the Accounting Standards Committee (''IASC'') and the interpretations issued by the International Financial Reporting Interpretation Committee (''IFRIC'') and Standing Interpretation Committee (''SIC'') which were adopted by the European Union. These standards and interpretations are hereinafter referred to collectively as ''IAS/IFRS''.

2.2. New standards and interpretations, revisions and amendments adopted by the European Union

The following standards, interpretations, amendments and revisions approved (endorsed) by the European Union with mandatory application in the financial years beginning on or after 1 January 2009, and which have had an impact on the Group's financial statements, were adopted for the first time in the year ended 31 December 2009:

Standard / Interpretation Effective date
(years beginning on
or after)
New standards and interpretations:
IFRS 8 - Operating segments O1 Jan 09 IFRS 8 replaces IAS 14 redefining the reportable segments and the
information to disclosure regarding those segments.
Revisions:
IAS 1 - Presentation of financial statements
(2007 revision)
O1 Jan 09 This revision introduces changes to terminology, including revised titles
for the financial statements, as well as format and content changes.
Amendments:
IFRS 1 - First-time adoption of international
financial reporting standards / IAS 27 -
Consolidated
and
separate
financial
statements (Amendments)
O1 Jan 09 These amendments refer to the measuring of the cost of investments
when adopting IFRS for the first time and the recognition of income in
dividends
from
subsidiaries
on
financial
statements of
the parent
company.
IFRS 7 - Financial instruments: disclosures
(Amendments)
O1 Jan 09 These amendments broaden the disclosures required relative to the fair
value of financial instruments and liquidity risk.
Improvements
to
International
Financial
Reporting Standards - 2007
Several (generally
O1-Jan-09)
This process involved the revision of 32 accounting standards.

The impact on the Group's financial statements for the year ended 31 December 2009 arising from the adoption of the abovementioned new standards, interpretations, amendments and revisions only occurred in relation to the presentation and disclosure of financial information.

The following standards, interpretations, amendments and revisions approved (endorsed) by the European Union by the date of approval of these financial statements, with potential impact on the Group's financial statements, are of mandatory application in future financial years:

Standard / Interpretation Effective date
(years beginning on
or after)
New standards and interpretations:
IFRIC 16 - Hedges of a net investment in a
foreign operation
01 July 09 This interpretation provides guidance on the accounting treatment of the
hedge of a net investment in a foreign operation.
IFRIC 18 - Transfer of assets from
customers
Transfers made on
or after 1 July 09
This interpretation provides guidance on the accounting treatment of
tangible fixed assets received from customers.
Revisions:
IFRS 1 - First-time adoption of international
financial reporting standards
O1 Jan 10 This revision reflects the various changes occurred since the first
version of this standard.
IFRS 3 - Business combinations /IAS 27 -
Consolidated and separate financial
statements (2008 revision)
01 July 09 This revision introduces changes in (a) the measuring of non-controlling
interests (previously called minority interests); (b) the recognition and
subsequent measurement of contingent considerations; (c) the treatment
of acquisition related costs; (d) the recording of transactions to acquire
additional interests in controlled subsidiaries and transactions to dispose
of interests without the loss of control.
Amendments:
IAS 39 - Financial instruments: recognition
and measurement (Amendments)
01 July 09 These amendments clarify some aspects of hedge accounting, namely (i)
the identification of inflation as a covered risk and (ii)the hedging of
options.
IFRIC 9 - Reassessment of Embedded
Derivatives / IAS 39 - Financial
instruments: recognition and measurement
(Amendments)
Years ended on or
starting after 30
June 09
These amendments clarify the circumstances in which the subsequent
reassessment of the compulsory separation of an embedded derivative is
permitted.

These standards although approved (endorsed) by the European Union were not adopted by the Group for the year ended 31 December 2009 because their application is not yet mandatory. The evaluation of the impact of the adoption of these standards is not concluded, though impacts of material relevance to the financial statements are not expected.

2.3. Critical accounting judgements/estimates

The preparation of financial statements in accordance with IFRS recognition and measurement principles requires the Board of Directors to make judgements, estimates and assumptions that can affect the amount of assets and liabilities presented, the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as of income and expenses.

These estimates are based on the best knowledge existing at each moment and the planned actions, and are regularly reviewed based on the information available. Changes in facts and circumstances can lead to a revision of the estimates and so actual results may differ from these estimates.

The significant estimates and assumptions made by the Board of Directors in preparing these financial statements include assumptions used in estimating the following items:

• Impairment of non-current assets

The determination of a potential impairment loss can arise as result from the occurrence of several events, many of them external to the Cimpor Group, such as future availability of financing, capital cost or any other changes, either internal or external, to Cimpor Group.

The identification of impairment indicators and the determination of the assets' recoverable amount, are subject of a Management's judgement referring to the identification and evaluation of the different impairment indicators, expected cash flows, applicable discount rates, useful lives and transaction values.

• Impairment of goodwill

Goodwill is subjected to annual impairment tests or whenever there are indications of a possible loss in value, in accordance with the policy mentioned in Note 16. The recoverable amounts of the cash-generating units to which goodwill has been allocated, is the higher between the market value, determined according with transaction multiples, and the value in use, determined according to the expected cash flows. The calculation of these amounts requires the use by the Management of estimates regarding the future evolution of the activity and the discount rates considered.

• Useful lives of intangible and tangible fixed assets

The useful life of an asset is the time period during which an entity expects that an asset will be usable and it must be reviewed at least at the end of each economical year.

The determination of the assets useful lives, amortization/depreciation method to apply and of the estimated losses resulting from the early replacement of equipments, due to technological obsolescence, is essential to determine the amount of amortization/depreciation charge to the consolidated income statement of each year.

These parameters are defined according to Management's best estimate, for the assets and businesses in question, considering as well the best practices adopted by companies operating in the same sectors.

• Provisions recognition

Cimpor Group periodically analyses possible obligations that arise from past events that should be recognized or disclosed. The subjectivity inherent to the determination of the probability and amount of internal resources required to settle the obligations, might lead to significant adjustments, either by the variation of the assumptions used or by the future recognition of provisions previously disclosed as contingent liabilities.

• Recognition of deferred tax assets

Deferred tax assets are only recognised when there is strong expectation that there will be sufficient future taxable income to utilise them or when there are deferred tax liabilities whose reversal is expected to occur in the same period of the reversal of the deferred tax assets. The carrying amount of deferred tax assets is reviewed by Management at the end of each reporting period and takes into consideration the expectation about the future performance.

• Accounts receivable impairment

The credit risk associated to accounts receivable is evaluated at the end of each reporting period, taking into account the debtor's historical information and his risk profile. The accounts receivable are adjusted by the assessment performed by the Management of the estimated collection risks at the balance sheet dates, which might differ from the effective risk to incur.

• Retirement and healthcare benefits

An actuarial valuation made by independent experts and based on economic and demographic indicators is performed each year in order to assess the liabilities resulting from retirement and healthcare benefits granted to Group's employees.

2.4. Consolidation principles

a) Controlled companies

Controlled companies have been consolidated in each period using the full consolidation method. Control is considered to exist where the Group holds, directly or indirectly, a majority of the voting rights at Shareholders' General Meetings, or has the power to determine the companies' financial and operating policies.

Third party participation in shareholders' equity and net profit of such companies is presented separately in the consolidated balance sheet and consolidated statement of profit and loss under the caption ''Minority interest''.

Where losses attributed to minority shareholders exceed the minority interest in shareholders' equity of controlled companies, the Group absorbs such excess and any additional losses, except where the minority shareholders are required and are able to cover such losses. If the subsidiary subsequently reports profits, the Group appropriates them up to the amount of the losses absorbed by the Group.

The results of controlled companies acquired or sold during the period are included in the statement of profit and loss from the date of their control is obtained to the date of their control is lost.

Significant balances and transactions between controlled companies were eliminated in the consolidation process. Capital gains within the Group on the sale of subsidiary and associated companies are also eliminated. Whenever necessary, adjustments are made to the financial statements of subsidiary and associated companies to conform to the Group's accounting policies.

Where the Group has, in substance, control over other entities created for a specific purpose, even though it does not have direct participations in them, they are consolidated by the full integration method.

b) Jointly controlled companies

Investments in jointly controlled companies are consolidated in accordance with the proportional consolidation method as from the date joint control is acquired. Under this method, assets, liabilities, income and expenses of these entities are included in the accompanying consolidated financial statements, caption by caption, in proportion to the Group's control.

The excess of cost over the fair value of the identifiable assets and liabilities of jointly controlled companies as of the acquisition date is recognised as Goodwill. If the difference between cost and the fair value of the net assets acquired is negative, it is recognised as income for the period.

Transactions, balances and dividends distributed between these companies are eliminated in proportion to the Group's control.

c) Business combinations

Business combinations, namely the acquisition of controlled and subsidiary companies are recorded in accordance with the purchase method. Cost corresponds to the sum of the fair values of the assets acquired less the liabilities incurred or assumed and the equity instruments issued in exchange for the control acquired as of the transaction date plus any costs directly attributable to the purchase process.

The identifiable assets, liabilities and contingent liabilities of a subsidiary that meet the criteria to be recognised in accordance with IFRS 3 - Business Combinations (''IFRS 3''), are measured by their fair value as of the purchase date, except for non-current assets (or groups of assets) that are identified as held for sale in accordance with IFRS 5 -- Noncurrent Assets Held for Sale and Discontinued Operations (''IFRS 5''), which are recognised and measured by their respective fair values less costs to sell.

Any excess of cost over the fair value of the identifiable net assets acquired as of the purchase date is recorded as Goodwill. Where cost is lower than the fair value of the net assets identified, the difference is recorded as a gain in the statement of profit and loss for the period in which the acquisition is made.

Minority shareholders' interest is reflected in proportion to the fair value of the assets and liabilities identified.

d) Investments in associates

An associated company is one over which the Group exercises significant influence, but does not have control or joint control, through participation in decisions relating to its financial and operating policies.

Investments in the majority of associated companies (Note 19) are recorded in accordance with the equity method, except where they are classified as held for sale. Investments are initially recorded at cost which is then increased or decreased by the difference between cost and the proportional value of the equity of such companies as of the purchase date or the date the equity method was first used.

In accordance with the equity method investments are adjusted periodically by the amount corresponding to participation in the net results of associated companies by corresponding entry to ''Share of profit of associates'' (Note 12) and by other changes in shareholders' equity by corresponding entry to ''Adjustments in investments in associates'', reflected as ''Reserves'', as well by recognition of impairment losses.

Losses in associated companies in excess of the investment in them are not recognised, unless the Group has assumed commitments to that associate.

Any excess of cost over the fair value of the identifiable net assets is recorded as ''Investments in associates -- Goodwill''. Where cost is less than the fair value of the net assets identified, the difference is recorded as a gain in the consolidated statement of comprehensive income for the period in which the acquisition is made.

In addition, dividends received from these companies are recorded as decreases in the amount of the investments.

Unrealised gains on transactions with associated companies are eliminated in proportion to the Group's interest in such companies, by corresponding entry to the amount of the corresponding investment. Unrealised losses are also eliminated, but only up to the point in which the loss does not show that the asset transferred is in a situation of impairment.

e) Goodwill

Goodwill represents the excess of cost over the fair value of the identifiable assets and liabilities of a controlled, associated company or jointly controlled entity, as of the date of acquisition.

Goodwill is recorded as an asset and is not amortised, being reflected in a separate balance sheet caption or in the caption ''Investments in associates'' (Notes 16 and 19). Annually, or whenever there are indications of a possible loss in value, goodwill is subjected to impairment tests. Any impairment loss is immediately recorded as a cost in the statement of profit and loss for the period and is not subject to subsequent reversal.

Goodwill is included in determining the gain or loss on the sale of a subsidiary, associated company or jointly controlled entity.

As a result of the exception established in IFRS 1 -- First-time Adoption of International Financial Reporting Standards (''IFRS 1''), the Group applied the provisions of IFRS 3 -- Business Combinations, to acquisitions after 31 December 1998. Goodwill on acquisitions after that date is restated to the currency of the subsidiary and translated to the Group's reporting currency (euros) at the rate of exchange on the balance sheet date.

Exchange differences arising on that translation are recorded in the caption ''Currency translation adjustments''.

Exchange differences generated prior to 1 January 2004 were recorded directly in ''Retained earnings'', in accordance with IFRS 1.

Goodwill on acquisitions prior to 31 December 1998 was maintained at the former amount, being subject to annual impairment tests as from that date.

Where cost is less than the fair value of the net assets identified, the difference is recorded as a gain in the statement of profit and loss for the period in which the acquisition takes place.

2.5. Intangible assets

Intangible assets, which comprise essentially contractual rights and costs incurred on specific projects with future economic value, are stated at cost less accumulated amortisation and impairment losses. Intangible assets are only recognised if it is probable that they will produce future economic benefits for the Group, they are controllable by the Group and their value can be determined reliably.

Internally generated intangible assets, namely current research and development costs, are recognised as costs when incurred.

Internal costs relating to the maintenance and development of software are recorded as costs in the statement of profit and loss when incurred, except where such costs relate directly to projects which will probably generate future economic benefits. In such cases these costs are capitalised as intangible assets.

Amortisation of such assets is provided on a straight-line basis as from the date the assets start being used, in accordance with their estimated useful life.

2.6. Tangible assets

Tangible assets used in production, rendering services or for administrative use are stated at cost, including expenses incurred with their purchase, less accumulated depreciation and, when applicable, impairment losses.

Assets relating to the cement operations on 1 January 2004 were revalued as permitted by the transition provisions of IFRS 1, the resulting amount being considered as the new cost.

Depreciation of tangible fixed assets is provided on a straight-line basis over their estimated useful lives, as from the date the assets become available for their intended use, in accordance with the following estimated periods of useful life:

Average
useful life
Buildings and other constructions 10 – 50
Basic equipment 7 – 30
Transportation equipment 4 – 8
Tools and dies 2 – 8
Administrative equipment 2 – 14
Other tangible fixed assets 2 – 10

The amount subject to depreciation does not include, when determinable and significative, the estimated residual value of the assets at the end of their useful lives. Additionally, the assets stop being depreciated when they are classified as assets held for sale.

Land used for quarries is depreciated over its estimated period of operation.

Improvements are only recognised as assets when they increase the useful life or efficiency of the assets, resulting in increased future financial benefits.

Tangible assets in progress correspond to tangible assets under construction/promotion and are recorded at cost less possible impairment losses. These assets are depreciated as from the date they become available for their intended use.

Gains and losses arising from the sale or write-off of tangible assets, which are determined by the difference between the proceeds of the sale of the assets and their net book value at the date of sale/write-off, are recognised in the statement of profit and loss caption ''Other operating income'' or ''Other operating expenses''.

2.7. Leases

Lease contracts are classified as: (i) finance leases, if substantially all the risks and benefits of ownership are transferred under them; and (ii) operating leases, if substantially all the risks and benefits of ownership are not transferred under them.

Leases are classified as finance or operating leases based on the substance and not form of the contract.

Fixed assets acquired under finance lease contracts, as well as the corresponding liabilities are recorded in accordance with the financial method. In accordance with this method the fixed assets are recorded as tangible assets, the corresponding liability is recognised and the interest included in the lease instalments and depreciation of the assets, calculated as explained above, are recognised in the consolidated statement of comprehensive income for the period to which they relate.

In the case of operating leases, the lease instalments are recognised, on a straight- basis, in the consolidated statement of comprehensive income over the period of the lease contracts.

2.8. Impairment of non-current assets, excluding goodwill

Impairment valuations are made whenever an event or change in circumstances is identified that indicates that the book value of an asset may not be recovered. Where such indications exist, the Group determines the recoverable value of the asset, so as to determine the possible extent of the impairment loss. In situations in which the individual asset does not generate cash flows independently of other assets, the recoverable value is estimated for the cash generating unit to which the asset belongs.

Whenever the book value of an asset exceeds its recoverable amount, an impairment loss is recognised by charge to the consolidated statement of comprehensive income caption ''Depreciation, amortisation and impairment losses on goodwill, tangible and intangible assets''.

The recoverable amount is the higher between the net selling price (selling price, less costs to sell) and the usable value of the asset. Net selling price is the amount that would be obtained from selling the asset in a transaction between knowledgeable independent entities, less the costs directly attributable to the sale. Usable value is the present value of the estimated future cash flows resulting from the continued use of the asset and sale thereof at the end of its useful life. The recoverable amount is estimated for each asset individually or, where this is not possible, for the unit generating the cash flows to which the asset belongs.

Impairment losses recognised in prior periods are reversed when there are indications that such losses no longer exist or have decreased. Impairment losses are reversed by credit to the consolidated statement of comprehensive income caption ''Depreciation, amortisation and impairment losses on goodwill, tangible and intangible assets''. However, the impairment loss is reversed up to the amount that would have been recognised (net of amortisation or depreciation) if the impairment loss had not been recorded in prior periods.

2.9. Foreign currency assets, liabilities and transactions

Transactions in currencies other than euro are recorded at the rates of exchange in force on the date of the transaction. Foreign currency monetary assets and liabilities at the balance sheet dates are translated to euros at the rates of exchange in force on that dates. Non monetary assets and liabilities recorded at their fair value in foreign currencies are translated to euros using the rate of exchange in force on the date the fair value was determined.

Exchange gains and losses resulting from differences between the exchange rates in force on the dates of the transactions and those in force on the dates of collection, payment or the balance sheet date are recognised as income or costs in the consolidated statement of profit and loss, except for those relating to non monetary items where the change in fair value is recognised directly in shareholders' equity (''Currency translation adjustments''), namely:

  • Exchange differences resulting from the translation of medium and long term foreign currency intra Group balances which, in practice, are extensions of investments;
  • Exchange differences on financial operations to hedge exchange risk on foreign currency investments as established in IAS 21 - The effects of changes in foreign exchange rates, provided that they comply with the efficiency criteria established in IAS 39.

The foreign currency financial statements of subsidiary and associated companies are translated as follows: assets and liabilities at the exchange rates in force on the balance sheet dates; shareholders' equity captions at the historical exchange rates; and consolidated statement of comprehensive income and statement of cash-flow captions at the average exchange rates.

The exchange effect of such translations after 1 January 2004 is reflected in the shareholders' equity caption ''Currency translation adjustments'' in the case of subsidiary companies and in the shareholders' equity caption ''Reserves - Adjustments in investments in associates'' in the case of investments in associated companies, and is transferred to the statement of profit and loss caption ''Net financial expenses'' when the corresponding investments are sold.

In accordance with IAS 21, goodwill and fair value corrections determined on the acquisition of foreign entities are considered in the reporting currency of such entities, and are translated to euros at the exchange rate in force on the balance sheet date. Exchange differences arising from these translations are reflected in the caption ''Currency translation adjustments''.

The Group contracts financial derivative hedging instruments when it wishes to reduce its exposure to exchange rate risk.

2.10. Borrowing costs

Costs incurred on loans obtained directly to finance the acquisition, construction or production of assets that necessarily take a substantial period of time to get ready for its intended use or sale (qualifying assets) are capitalised as part of the cost of the assets during that period.

To the extent that variable interest rate loans, attributable to finance the acquisition, construction or production of qualifying assets, are being covered through a cash flow hedge relation, the effective portion of fair value of the derivative financial instrument is recognized in Reserves and transferred to profit and loss when the qualifying asset has an impact on results.

Additionally, to the extent that fixed interest rate loans used to finance a hedged item are covered by a fair value hedge relation, the financial burden in addition to the cost of the asset should reflect the interest rate covered.

Any financial income generated by loans obtained in advance to finance specific capital expenditure is deducted from the capital expenditure subject to capitalisation.

2.11. Subsidies

Subsidies are recognised based on their fair value, when there is reasonable certainty that they will be received and that the Group will comply with the conditions required for them to be granted.

Operating subsidies, namely those for employee training, are recognised in the consolidated statement of comprehensive income in accordance with the costs incurred.

Investment subsidies relating to the acquisition of tangible fixed assets are recorded in the caption ''Other non-current liabilities'' and are recorded to the consolidated statement of comprehensive income on a consistent straight-line basis in proportion to depreciation of the subsidised assets.

2.12. Inventories

Merchandise and raw, subsidiary and consumable materials are stated at average cost.

Finished and semi-finished products and work in progress are stated at production cost, which includes the cost of the raw materials incorporated, labour and production overheads.

Inventories are reduced in value where market value is lower than book value, through the recognition of an impairment loss, the reduction being reversed when the reasons that gave rise to it cease to exist.

2.13. Non-current assets held for sale

Non-current assets (or discontinued operations) are classified as held for sale if their value is realizable through a sale transaction rather than through its continued use. This situation is only considered to arise when: (i) the sale is probable and the asset is available for immediate sale in its present condition, (ii) the management is committed to a plan of sale, and (iii) the sale is expected to take place within a period of twelve months.

Non-current assets (or discontinued operations) classified as held for sale are measured at the lower of the book value or their fair value less the costs incurred in their sale.

2.14. Segment reporting

A business segment is a distinguishable component of an entity that is engaged in providing a product or service or a group of related products or services which are different from those of other business segments.

The Group presents as main segments the geographical segments, following the way Management carries out businesses.

2.15. Balance sheet classification

Assets to be realised and liabilities to be settled within one year of the balance sheet date are classified as current.

In addition the liabilities are also classified as current, when there is no unconditional right to defer its settlement for a period of at least twelve months after the balance sheet date.

2.16. Net operating income

Net operating income includes operating income and expenses, whether recurring or not, including restructuring costs and operating income and expenses associated to tangible assets and intangible assets. Also comprise, gains or losses on the sale of companies consolidated using the full or proportional integration method. The net financial expenses, share of results of associates, other financial investment (Notes 12, 19 and 20) and income tax, are excluded.

2.17. Provisions

Provisions are recognised when: (i) exists an obligation (legal or implicit) resulting from a past event; (ii) under which it is probable that it will have an outflow of resources to resolve the obligation; and (iii) the amount of the obligation can be reasonably estimated. At each balance sheet date provisions are reviewed and adjusted to reflect the best estimate as of that date.

When one of the conditions described is not completed the Group disclosures the events in question as contingent liabilities, unless the possibility of outflow of resources is remote, in which case they are not subject to disclosure.

a) Provisions for restructuring costs

Provisions for restructuring costs are recognised by the Group whenever there is a formal detailed restructuring plan which has been communicated to the parties involved.

b) Environmental rehabilitation

In accordance with current legislation and practices in force in several business areas in which the Group operates, land used for quarries must be environmentally rehabilitated.

In this respect, provisions are recorded to cover the estimated cost of environmentally recovering and rehabilitating the land used for quarries, whenever this can be reasonably determined. Such provisions are recorded together with a corresponding increase in the amount of the underlying assets, based on the conclusions of landscape rehabilitation studies, being recognised in the statement of profit and loss as the corresponding assets are depreciated.

In addition, the Group has the procedure of progressively rehabilitating the areas freed up by the quarries, using the recorded provisions.

2.18. Financial instruments

Financial assets and liabilities are recognised when the Group becomes a party to the contractual relationship.

a) Cash and cash equivalents

The caption Cash and cash equivalents includes cash, bank deposits, term deposits and other treasury applications which mature in less than three months, and are repayable on demand with insignificant risk of change in value.

The caption Cash and cash equivalents in the statement of cash flows also includes bank overdrafts, which are included in the balance sheet in the caption Loans.

b) Accounts receivable

Accounts receivable are measured at fair value when they are initially recognised and are subsequently stated at amortised cost in accordance with the effective interest rate method. When there is evidence that the accounts receivable are impaired, the corresponding adjustment is recorded by corresponding charge to the statement of profit and loss. The adjustment is recognised and measured by the difference between the book value of the accounts receivable and the present value of the cash flows discounted at the effective interest rate determined upon initial recognition of the accounts receivable.

c) Investments

Investments are recognised (and derecognised) as of substantially all the risks and benefits of ownership are transferred under them, irrespective of the settlement date.

Investments are initially recognised at cost, which is the fair value of the price paid, including transaction costs. Investments are classified as follows:

  • Held-to-maturity investments;
  • Assets at fair value through the statement of profit and loss;
  • Available-for-sale financial assets.

Held-to-maturity investments are classified as non-current assets, except if they mature in less than twelve months from the balance sheet date, investments with a defined maturity date which the Group intends and has the capacity to hold up to that date being recorded in this caption. These investments are recognised at amortised cost, using the effective interest rate, net of capital repayments and interest received. Impairment losses are recognised in the statement of profit and loss when the recorded amount of the investment is lower than the estimated value of the cash flows discounted at the effective interest rate determined at the time of initial recognition. Impairment losses can only be reversed subsequently when there is an increase in the recoverable amount of the investment can be objectively related to an event occurring after the date in which the impairment loss was recognised. In any case the recognised amount of the investment cannot exceed the amount corresponding to amortised cost of the investment had the impairment loss not been recognised.

After initial recognition, assets measured at fair value through profit and loss and available-for-sale financial assets are revalued to fair value by reference to their market value as of the balance sheet date with no deduction for transaction costs that could arise up to the date their sale. Investments in equity instruments not listed on regulated markets, where it is not feasible to estimate their fair value on a reliable basis, are maintained at cost less possible impairment losses.

Available-for-sale financial assets are classified as non-current assets. Gains and losses due to changes in the fair value of available-for-sale financial assets are reflected in the shareholders' equity caption ''Fair value reserve'' until the instrument is sold, collected or in any other way realised, or where impairment losses are believed to exist, in which case the accumulated gain or loss is recorded.

Those who do not have listed in an active market and whose fair value cannot be reliably measured are kept at cost adjusted for estimated impairment losses.

d) Financial liabilities and equity instruments

Financial liabilities and equity instruments issued by the Group are classified in accordance with the substance of the contract independently of its legal form. Equity instruments are contracts that have a residual interest in the Group's assets after deduction of the liabilities.

Equity instruments issued are recorded at the amount received net of costs incurred to issue them.

e) Bank loans

Loans are initially recorded as liabilities at the amount received, net of loan issuing costs, which corresponds to their fair value on that date. Loans are subsequently measured at amortised cost, being the corresponding financial costs calculated at the effective interest rate, except as follows:

  • Loans that form part of a relationship qualified as a fair value hedge, which are measured at fair value as regards the part attributed to the risk hedged. Variations in fair value are recognised in the statement of profit and loss for the period and compensated by the variation in fair value of the hedging instrument, as regards the corresponding effective component;
  • Loans designated as financial liabilities, measured at fair value through profit and loss.

f) Accounts payable

Accounts payable are initially recognised at fair value and subsequently measured at amortised cost in accordance with the effective interest rate method.

g) Derivative financial instruments and hedge accounting

The Group has the policy of resorting to financial derivative instruments to hedge the financial risks to which it is exposed as a result of changes in interest and exchange rates.

The Group resorts to financial derivative instruments in accordance with internal policies set and approved by the Board of Directors.

Financial derivative instruments are measured at fair value. The method of its recognition depends on the nature and purpose of the transaction.

Hedge accounting

Derivative financial instruments are designated as hedging instruments in accordance with the provisions of IAS 39, as regards their documentation and effectiveness.

Changes in the fair value of derivative instruments designated as fair value hedges are recognised as financial income or expense for the period, together with changes in the fair value the asset or liability subject to the risk.

Changes in the fair value of derivative financial instruments designated as cash flow hedging instruments are recorded in the caption Reserves - Hedging operations as regards their effective component and in financial income or expense for the period as regards their non effective component. The amounts recorded under Hedging operations are transferred to the statement of profit and loss in the period in which the effect on the item covered is also reflected in the statement of profit and loss.

Changes in the value of derivative financial instruments hedging net investments in a foreign entity, are recorded in the caption Currency translation adjustments as regards their effective component. The non effective component of such changes is recognised immediately as financial income or expense for the period. If the hedging instrument is not a derivative, the corresponding variations resulting from changes in the exchange rate are recorded in the caption ''Currency translation adjustments''.

Hedge accounting is discontinued when the hedging instrument matures, is sold or exercised, or when the hedging relationship ceases to comply with the requirements of IAS 39.

Trading instruments

Changes in the fair value of derivative financial instruments which are contracted for financial hedging purposes in accordance with the Group's risk management policies, but do not comply with all the requirements of IAS 39 to qualify for hedge accounting, are recorded in the statement of profit and loss for the period in which they occur.

h) Treasury shares

Treasury shares are recorded at cost, as a decrease in shareholders' equity. Gains and losses on the sale of treasury shares are recorded in the caption Reserves.

i) Fair value of financial instruments

The fair value of financial assets and financial liabilities is determined as follows:

• The fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets is determined with reference to quoted market prices;

• The fair value of other financial assets and financial liabilities (excluding derivative instruments) is determined in accordance with generally accepted pricing models based on discounted cash flows analysis using prices from observable current market transactions.

The fair value of derivative financial instruments is calculated using market prices. Where such prices are not available, fair value is determined based on discounted cash flows, which includes some assumptions that are supportable by observable market prices or rates.

2.19. Retirement benefits

Retirement benefits are recorded in accordance with IAS 19 - Employee benefits.

Defined benefit plans

Costs of these benefits are recognised as the services are rendered by the beneficiary employees.

Therefore, at the end of each accounting period actuarial valuations are obtained from independent entities to determine the amount of the liability as of that date and the pension cost to be recognised in the period, in accordance with the ''projected unit credit'' method. The liability thus estimated is compared with the market value of the pension fund, so as to determine the amount of the difference to be recorded in the balance sheet.

As established in the above mentioned standard, pension costs are recognised in the caption Payroll costs, based on the amounts determined on an actuarial basis, and include current service costs (increase in the liability), which corresponds to the additional benefits accrued to the employees during the period and interest costs, which result from updating the past service liability. These amounts are reduced by the estimated return on the assets relating to the plan. Actuarial gains and losses are recorded directly in Reserves.

Past service costs are recognised immediately, as the related benefits have already been recognised or, alternatively, recognised on a straight-line basis over the estimated period in which they are obtained.

Defined contribution plans

Contributions made by the Group to defined contribution plans are recorded as costs when they are due.

2.20. Healthcare benefits

Some Group companies provide supplementary healthcare benefits to their employees in addition to those provided by the Public Social Security, extensive to their families, early retired and retired personnel. The liability resulting from these benefits is recorded in a similar manner to the retirement pension liability, in the caption ''Payroll costs - healthcare benefits'', except for the ones relating to actuarial gains and losses, which are recorded in Reserves.

As in the case of retirement benefits, actuarial valuations made by an independent entity are obtained at the end of each accounting period, so as to determine the amount of the liability as of that date.

2.21. Share-based payments

Share-based payments to employees, according to incentive share purchase plan and share option plan, are recorded in accordance with IFRS 2 - Share-based payment.

In accordance with IFRS 2, equity settled payment transactions are recognised at their fair value on the date they are granted.

Fair value as of the date the benefits are granted is recognised as cost on a straight-line basis over the vesting period as a result of services rendered.

2.22. Contingent assets and liabilities

A contingent liability is (i) a possible obligation that arises from past events and whose existence will be confirmed by the occurrence or non-occurrence of uncertain future events or (ii) a present obligation that arises from past events, but that is not recognized because an outflow of funds are not probable or the amount cannot be reliably measured.

Contingent liabilities are not recognised in the consolidated financial statements but are disclosed in the notes to the financial statements, unless the possibility of an outflow of funds affecting future economic benefits is remote, in which case they are not subject to disclosure.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of uncertain future events.

Contingent assets are not recognised in the consolidated financial statements, but are disclosed in the notes to the financial statements when a future economic benefit is probable.

2.23. Revenue recognition and accruals basis

Income resulting from sales is recognised in the consolidated statement of profit and loss when the risks and benefits of ownership of assets are transferred to the purchaser and the amount of income can be reasonably quantified. Sales are recognised at the fair amount received or receivable, net of taxes, discounts and other costs incurred to realise them, by the fair value of the amount received or receivable.

Income from services rendered is recognised in the consolidated statement of profit and loss in the period in which they are rendered.

Interest and financial income are recognised on an accrual basis in accordance with the effective interest rate.

Costs and income are recognised in the period to which they relate independently of when they are paid or received. Costs and income, the amount of which is not known, are estimated.

Costs and income attributable to the current period which will only be paid or received in future periods, as well as amounts paid and received in the current period that relate to future periods and will be attributed to each of the periods by the amount corresponding to them, are recorded in the captions Other current assets and Other current liabilities (Notes 24 and 42).

2.24. Impairment and adjustments of financial assets

At each balance sheet date, the Group reviews for any indication that a financial asset or a group of financial assets may be impaired.

Available-for-sale financial assets

For the financial assets classified as available-for-sale, a continuous or a significant decline in the fair value of the instrument below its cost, is considered as an indicator of impairment. If such evidence exists for available-for-sale financial assets, the cumulative loss -- measured as the difference between the asset's carrying amount and the present fair value, less any impairment loss already recognised in profit and loss -- is removed from equity and recognised in profit and loss statement. Impairments relating to investments in available-for-sale equity instruments are not reversed through statement of profit and loss.

Clients, debtors and other financial assets

Impairment losses are recorded whenever there are clear indicators that the Group will not be able to collect all the amounts it should receive, according to the terms established by the contracted agreements. To identify these losses, several indicators are used, such as:

  • accounts receivable ageing;
  • debtor's financial difficulties;
  • debtor's bankruptcy probability.

The adjustments are measured by the difference between the recoverable amount and the carrying amount of the financial asset and recognized as an expense in the income statement. The carrying amount of these assets is reduced to the recoverable amount through an impairment recognition. Whenever a certain amount is considered as uncollectible it is removed through the use of the respective impairment account. Subsequent recovery of these amounts is recorded in the income statement.

2.25. Income tax

Tax on income for the period is calculated based on the taxable results of the companies included in the consolidation and takes into consideration deferred taxation.

Current income tax is calculated based on the taxable results (which differ from the accounting results) of the companies included in the consolidation, in accordance with the tax rules applicable to the area in which the head office of each Group company is located.

Deferred taxes refer to temporary differences between the amounts of assets and liabilities for accounting purposes and the corresponding amounts for tax purposes.

Deferred tax assets and liabilities are calculated and assessed periodically using the tax rates expected to be in force when the temporary differences reverse, and are not subject to discounting.

Deferred tax assets are only recognised when there is reasonable expectation that there will be sufficient future taxable income to utilise them. Temporary differences underlying the deferred tax assets are reappraised annually in order to recognise or adjust the deferred tax assets based on the current expectation of their future recovery.

2.26. Earnings per share

Earnings per share are calculated dividing the result attributable to the ordinary shareholders of the parent company, by the weighted average number of shares in circulation during the period.

The diluted earnings per share are calculated dividing the result attributable to the ordinary shareholders of the parent company, by the weighted average number of shares in circulation during the period, adjusted by potential ordinary diluting shares.

Potential ordinary diluting shares can result from options over shares and other financial instruments issued by the Group, convertible to shares of the Parent company.

2.27. Subsequent events

Events that occur after the date of the balance sheet that provide additional information on conditions that existed as of the balance sheet date are reflected in the consolidated financial statements.

Events that occur after the date of the balance sheet, that provide information on conditions that exist after the balance sheet date, if material, are disclosed in the notes to the consolidated financial statements.

2.28. CO2 emission licences -- Emissions market

Some of the Group's production units in Portugal and Spain are covered by the European greenhouse effect gas emissions market. While the IASB does not issue accounting policies covering the granting and trading of emission licences, the Group adopts the following policy:

  • Emission licences granted at no cost, as well the corresponding emissions covered by that licences, do not give rise to the recognition of any asset or liability;
  • Gains from the sale of emission rights are recognised in Net operating income;
  • When it is estimated that annual CO2 emissions will exceed the licences granted annually, a liability, measured in accordance with the price at the end of the year, is recognised by corresponding charge to Other operating expenses;

• Licences acquired are recognised at cost, in a specific intangible assets account under the Industrial property and other rights caption.

3. Changes in policies, estimates and errors

The significant changes in estimates in the years ended 31 December 2009 and 2008 relate to changes in the actuarial assumptions used to determine the liability due to employee benefits, disclosed in Note 34.

Since the year ended 31 December 2008, arising from changes to IAS 23, the Group has charged the cost of its qualifying assets (Note 2.10.) on loan costs directly related to its acquisition, construction or production to date that is available to the intended use or sale.

There were no other changes in accounting policies or corrections of errors identified in these years.

4. Companies included in the consolidation

4.1. Companies consolidated in accordance with the full consolidation method

The parent company, Cimpor - Cimentos de Portugal, SGPS, S.A., and the following subsidiaries, in which it has majority participation (control), have been consolidated using the full consolidation method:

Name Full name/Headquaters Effective
Participation
HOLDING E SUB-HOLDING COMPANIES
CIMPOR SGPS CIMPOR - CIMENTOS DE PORTUGAL, SGPS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
CIMPOR PORTUGAL CIMPOR PORTUGAL, SGPS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
CIMPOR INTERNACIONAL CIMPOR INTERNACIONAL, SGPS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
CIMPOR INVERSIONES CIMPOR INVERSIONES, S.A.
Calle Brasil, 56
36204 Vigo
100,00
CEMENT AREA (Portugal)
CIMPOR INDÚSTRIA CIMPOR – INDÚSTRIA DE CIMENTOS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
SCIAL ESTABELECIMENTOS SCIAL DO NORTE, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
CECISA CECISA - COMÉRCIO INTERNACIONAL, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
CTA CEMENT TRADING ACTIVITIES - COMÉRCIO
INTERNACIONAL, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
Name Full name/Headquaters Effective
Participation
MOSSINES MOSSINES – CIMENTOS DE SINES, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
CIMENTAÇOR CIMENTAÇOR - CIMENTOS DOS AÇORES, LDA.
Rua Bento Dias Carreiro, 6
9600-050 Pico da Pedra - Ribeira Grande
Açores
100,00
CECIME CECIME – CIMENTOS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
CIMPOR BETÃO CIMPOR BETÃO - INDÚSTRIA DE BETÃO PRONTO, S.A.
Rua Quinta do Paizinho, Edifício Bepor, Bloco 2-1ºEsq.
2790 - 237 Carnaxide
100,00
AGREPOR AGREPOR AGREGADOS - EXTRACÇÃO DE
INERTES, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
BETÃO LIZ BETÃO LIZ, S.A.
Rua Quinta do Paizinho, Edifício Bepor, Bloco 2-1ºEsq.
2790 - 237 Carnaxide
100,00
FORNECEDORA FORNECEDORA DE BRITAS DO CARREGADO, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
SOGRAL SOGRAL - SOCIEDADE DE GRANITOS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
JOMATEL JOMATEL - EMPRESA DE MATERIAIS DE
CONSTRUÇÃO, S.A.
Rua Quinta do Paizinho, Edifício Bepor, Bloco 2-1ºEsq.
2790 - 237 Carnaxide
100,00
IBERA IBERA - INDÚSTRIA DE BETÃO, S.A.
Qtª da Madeira, Estrada Nac. 114, km 85
7002 - 505 Évora
50,00
Name Full name/Headquaters Effective
Participation
PRECAST AREA (Portugal)
PREDIANA PREDIANA - SOCIEDADE DE PRÉ-ESFORÇADOS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
GEOFER GEOFER - PRODUÇÃO E COMERCIALIZAÇÃO DE BENS
E EQUIPAMENTOS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
OTHER RELATED ACTIVITIES (Portugal)
SACOPOR SACOPOR - SOCIEDADE DE EMBALAGENS E SACOS
DE PAPEL, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
CIMPOR TEC CIMPOR TEC – ENGENHARIA E SERVIÇOS TÉNICOS
DE APOIO AO GRUPO, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
CIARGA CIARGA - ARGAMASSAS SECAS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
TRANSVIÁRIA TRANSVIÁRIA - GESTÃO DE TRANSPORTES, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
ALEMPEDRAS ALEMPEDRAS - SOCIEDADE DE BRITAS, LDA.
Casal da Luz, Santa Maria
2510 - 086 Óbidos
100,00
SOGESSO SOGESSO - SOCIEDADE DE GESSOS DE SOURE, S.A.
Lugar de São José do Pinheiro
3130 - 544 Soure
99,58
CELFA CELFA – SOCIEDADE INDUSTRIAL DE
TRANSFORMAÇÃO DE GESSOS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
Name Full name/Headquaters Effective
Participation
SCORECO SCORECO - VALORIZAÇÃO DE, RESÍDUOS, LDA.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
KANDMAD KANDMAD – SOCIEDADE GESTORA DE
PARTICIPAÇÕES SOCIAIS, LDA.
Rua dos Aranhas, nº 53 - 3º Andar, Letra H, Freguesia da Sé,
9000 - 044 Funchal
100,00
INTERNACIONAL AREA
SPAIN
CORPORACIÓN NOROESTE CORPORACIÓN NOROESTE, S.A.
Calle Brasil nº 56
36 204 Vigo
99,54
C.N. HORMIGONES Y ÁRIDOS CORPORACIÓN NOROESTE DE HORMIGONES Y
ÁRIDOS, S.L.
Calle Brasil nº 56
36 204 Vigo
99,54
S.C.M.C. ANDALUCÍA SOCIEDAD DE CEMENTOS Y MATERIALES DE
CONSTRUCCIÓN DE ANDALUCÍA, S.A.
Av. de la Agrupacíon de Córdoba, 15
14 014 Córdoba
99,54
CEMENTOS ANDALUCÍA CEMENTOS DE ANDALUCÍA, S.L.
Av. de la Agrupación de Córdoba, 15
14 014 Córdoba
99,54
OCCIDENTAL HORMIGONES OCCIDENTAL DE HORMIGONES, S.L.
Calle la Biela s/n
Polígono Industrial el Nevero
06006 Badajoz
99,54
CEMENTOS EL MONTE CEMENTOS EL MONTE, S.A.
21810 – Palos de la Frontera (Huelva)
Puerto Exterior de Huelva
Muelle Ingeniero Juan Gonzalo s/n
99,54
CEMENTOS NOROESTE CEMENTOS NOROESTE, S.L.
Calle Brasil nº 56
36 204 Vigo
99,54
Name Full name/Headquaters Effective
Participation
SERMACONSA SERVICIOS Y MATERIALES PARA LA
CONSTRUCCIÓN, S.A.
Calle Brasil nº 56
36 204 Vigo
99,54
MORTEROS GALICIA MORTEROS DE GALICIA, S.L.
Calle Brasil nº 56
36 204 Vigo
99,54
S.I.F. GALLEGA SOCIEDAD INDUSTRIAL Y FINANCIERA GALLEGA, S.L.
Calle Brasil nº 56
36 204 Vigo
99,54
TABANQUE, S.L. TABANQUE, S.L.
Calle Brasil nº 56
36 204 Vigo
99,54
HORMIGONES MIÑO HORMIGONES MIÑO, S.L.
Calle Brasil nº 56
36 204 Vigo
99,52
CEMENTOS COSMOS CEMENTOS COSMOS, S.A.
Calle Brasil nº 56
36 204 Vigo
99,30
PREBETONG GALICIA PREBETONG GALICIA, S.A.
Calle Brasil nº 56
36 204 Vigo
98,41
BOMTRAHOR BOMBEO Y TRANSPORTE DE HORMIGON, S.A.
Calle Brasil nº 56
36 204 Vigo
92,80
CANTERAS PREBETONG CANTERAS PREBETONG, S.L.
Calle Brasil nº 56
36 204 Vigo
98,41
PREBETONG LUGO PREBETONG LUGO, S.A.
Av. Benigno Rivera s/n
Polígono Industrial del Ceao
27 003 Lugo
81,57
PREBETONG LUGO HORMIGONES PREBETONG LUGO HORMIGONES, S.A.
Av. Benigno Rivera s/n
Polígono Industrial del Ceao
27 003 Lugo
81,57
Name Full name/Headquaters Effective
Participation
MATERIALES ATLÁNTICO MATERIALES DEL ATLÁNTICO, S.A.
Polígono Industrial As Lagoas – Carretera Cedeira Km. 1,5
15 570 Narón (La Coruña)
99,47
HORMIGONES LA BARCA HORMIGONES Y ÁRIDOS LA BARCA, S.A.
Lugar de Lantañón
Vilanoviña - Meis (Pontevedra)
49,77
ARICOSA ÁRIDOS DE LA CORUÑA, S.A.
Candame
15 142 Arteixo (La Coruña)
49,21
CANPESA CANTEIRA DO PENEDO, S.A.
Reina, 1 – 3º
27 001 Lugo
40,77
OCCIDENTAL DE ARIDOS OCCIDENTAL DE ARIDOS, S.L.
Calle Brasil nº 56
36204 Vigo
99,54
CIMPOR HORMIGÓN CANARIAS CIMPOR HORMIGÓN CANARIAS, S.L.
Calle Brasil nº 56
36204 Vigo
99,54
CIMPOR CANARIAS CIMPOR CANARIAS, S.L.
Calle Brasil nº 56
36204 Vigo
99,54
DS UNIÓN DS UNIÓN, S.L.
Calle Goya, nº1, 5º-C
18002 Granada
89,58

MAROCCO

ASMENT DE TEMARA ASMENT DE TEMARA, S.A.
Ain Attig – Route de Casablanca
Témara
62,62
BETOCIM BETOCIM, S.A.S.
Chez Asment Témara, Ain Attig – Route de Casablanca
Témara
100,00
ASMENT DU CENTRE ASMENT DU CENTRE, S.A.
Chez Asment Témara, Ain Attig – Route de Casablanca
Témara
100,00
Name Full name/Headquaters Effective
Participation
GRABEMA GRABEMA, S.A.
Chez Asment Témara, Ain Attig – Route de Casablanca
Témara
100,00
TUNISIA
C.J.O. SOCIÉTÉ DES CIMENTS DE JBEL OUST
9, Rue de Touraine, Cité Jardins
1082 Tunis – Belvédère
100,00
B.J.O. SOCIÉTÉ BETON JBEL OUST
9, Rue de Touraine, Cité Jardins
1082 Tunis – Belvédère
100,00
G.J.O. SOCIÉTÉ GRANULATS JBEL OUST
9, Rue de Touraine, Cité Jardins
1082 Tunis – Belvédère
100,00
EGYPT
CEC CIMPOR EGYPT FOR CEMENT COMPANY, S.A.E.
El Gharbaneyat – Borg El Arab City
P.O. Box 21511 Alexandria
100,00
AMCC AMREYAH CEMENT COMPANY, S.A.E.
El Gharbaneyat – Borg El Arab City
P. O. Box 21511 Alexandria
96,39
AMREYAH CIMPOR AMREYAH CIMPOR CEMENT COMPANY, S.A.E.
El Gharbaneyat – Borg El Arab City
P.O. Box 21511 Alexandria
97,29
CSC CEMENT SERVICES COMPANY, S.A.E.
El Gharbaneyat – Borg El Arab City
P.O. Box 21511 Alexandria
98,38
CIMPSAC CIMPOR SACS MANUFACTURE COMPANY, S.A.E.
El Gharbaneyat – Borg El Arab City
P.O. Box 21511 Alexandria
99,59
AMREYAH DEKHEILA AMREYAH DEKHEILA TERMINAL COMPANY, S.A.E.
Dekheila Port
Alexandria
97,35
Name Full name/Headquaters Effective
Participation
AMREYAH CIMPOR READY MIX AMREYAH CIMPOR READY MIX COMPANY S.A.E.
Industrial área, Plot no. 89T,
Dekheila,
Alexandria
96,86
TURKEY
CIMPOR YIBITAS CIMPOR YIBITAS CIMENTO SANAYI VE TICARET A.S.
Portakal Cicegi Sokak nº 33 - 06540
06540 Cankaya / Ankara
99,74
YOZGAT YIBITAS YOZGAT ISCI BIRLIGI INSAAT MALZEMELERI
TICARET VE SANAYI A. S.
66920 - Sarayköy / Yozgat
80,92
BEYNAK CIMPOR YIBITAS NAKLIYECILIK
TICARET VE SANAYI A.S.
Portakal Cicegi Sokak nº 33 - 06540
06540 Cankaya / Ankara
99,74
BRAZIL
C.C.B. CIMPOR - CIMENTOS DO BRASIL, LTDA.
Avª Maria Coelho Aguiar, 215 – Bloco E – 8º
Jardim São Luíz - São Paulo
100,00
MOZAMBIQUE
CIM. MOÇAMBIQUE CIMENTOS DE MOÇAMBIQUE, S.A.
Av. 24 de Julho, nº 7 - 9º/10º pisos
Caixa Postal 270
Maputo
82,46
CIMBETÃO CIMPOR BETÃO MOÇAMBIQUE, S.A.
Estrada de Lingamo
Matola
82,46
IMOPAR IMOPAR - IMOBILIÁRIA DE MOÇAMBIQUE, S.A.
Av. 24 de Julho, nº 7 - 10º piso, direito
Maputo
100,00
Name Full name/Headquaters Effective
Participation
SOUTH AFRICA
NPC NPC - CIMPOR (PTY) LIMITED
199 Coedmore Road Bellair
4094 Durban
74,00
NPCC NATAL PORTLAND CEMENT COMPANY (PTY) LTD.
199 Coedmore Road Bellair
4094 Durban
100,00
DC DURBAN CEMENT LTD.
199 Coedmore Road Bellair
4094 Durban
100,00
SRT SIMUMA REHABILITATION TRUST
1 Wedgelink Road
Bryanston
37,00
CONCRETE NPC CONCRETE (PTY) LTD.
199 Coedmore Road Bellair
4094 Durban
100,00
S. C. STONE SOUTH COAST STONE CRUSHERS (PTY) LTD.
199 Coedmore Road Bellair
4094 Durban
74,00
S. C. MINING SOUTH COAST MINING (PTY) LTD.
199 Coedmore Road Bellair
4094 Durban
100,00
EEDESWOLD EEDESWOLD HIGHLANDS (PTY) LTD.
199 Coedmore Road Bellair
4094 Durban
100,00
STERKSPRUIT AGGREGATES STERKSPRUIT AGGREGATES (PTY) LTD.
199 Coedmore Road Bellair
4094 Durban
74,00
STERKSPRUIT CONCRETE STERKSPRUIT CONCRETE (PTY) LTD.
199 Coedmore Road Bellair
4094 Durban
100,00
DURBAN QUARRIES DURBAN QUARRIES (PTY) LTD.
199 Coedmore Road Bellair
4094 Durban
100,00
Name Full name/Headquaters Effective
Participation
CHINA
CIMPOR CEMENT CORPORATION CIMPOR CEMENT CORPORATION LIMITED
35/F Cheung Kong Center, 2 Queen's Road
Central - Hong Kong
50,00
SEA - LAND MINING SEA - LAND MINING LIMITED
35/F Cheung Kong Center, 2 Queen's Road
Central - Hong Kong
50,00
CIMPOR SHANDONG CIMPOR (SHANDONG) CEMENT COMPANY LIMITED
Kuangsi Village, Liuyuan Town, Yicheng District
Zaozhuang City, Shangdong Province
ZIP code: 277300
48,80
NANDA SUZHOU NANDA CEMENT COMPANY LIMITED
Nº. 1, WenDu Road, Wang Ting Town, Xiang Cheng District
Suzhou City, Jiangu Province
ZIP code: 215155
35,52
HUAI'AN LIUYUAN HUAI'AN LIUYUAN CEMENT COMPANY LIMITED
Shendu Village, Wangying Town, Huaiyin district, Huai'na city,
Jiangsu Province
ZIP code: 223300
48,80
SUZHOU LIUYUAN SUZHOU LIUYUAN NEW TYPE CEMENT
DEVELOPMENT CO.,LTD
Suzhou Wuzhong economic development zone, DongWu
industrial park second term (Yinzhong south road)
ZIP code: 215000
48,80
CIMPOR SHANGHAI CIMPOR (SHANGHAI) ENTERPRISES MANAGEMENT CONSULTING
COMPANY LIMITED
222 Huaihai Zhong Lu, Lippo Plaza, Floor 25, Room 2505-07
ZIP Code: 200021
Shanghai
50,00
LIYANG LIYANG DONGFANG CEMENT COMPANY LIMITED
Shanghuang Town, Liyang, Jiangsu Province
ZIP Code: 213314
50,00
NEW HLG CIMPOR (HUAI'AN) CEMENT PRODUCTS COMPANY LIMITED
Wangying Town, Huaiyin district
Huai'An City, Jiangsu Province
50,00
Name Full name/Headquaters Effective
Participation
CIMPOR ZAOZHUANG CIMPOR (ZAOZHUANG) CEMENT COMPANY LIMITED
Matou Village, Fucheng County, Shanting District,
Zaozhuang City, Shandong Province
ZIP Code: 277222
50,00
CIMPOR MACAU INVESTMENT CIMPOR MACAU INVESTMENT COMPANY, S.A.
Av. da Praia Grande, 693
Edifício Tai Wash - 15º andar
MACAU
50,00
EAST ADVANTAGE EAST ADVANTAGE INTERNATIONAL LIMITED
Romasco Place, Wickhams Cay 1,
P.O. Box 3140, Road Town, Tortola
British Virgin Islands VG1110
50,00
INDIA
SHREE DIJIVAY CEMENT CO, LTD SHREE DIJIVAY CEMENT CO, LTD
P.O. Digvijaygram - 361140 Jamnagar
Estado de Gujarat
73,63
CAPE VERDE
CIMPOR CABO VERDE CIMPOR CABO VERDE, S.A.
Estrada de Tira Chapéu
Praia, Santiago
14/A
98,65
CABO VERDE BETÕES E INERTES CABO VERDE BETÕES E INERTES, S.A.
Estrada de Tira Chapéu
Praia, Santiago
14/A
54,32
ITP INDÚSTRIA DE TRANSFORMAÇÃO DE PEDRAS, LDA.
Estrada de Tira Chapéu
Praia, Santiago
14/A
98,65
BETÕES DE CABO VERDE BETÕES DE CABO VERDE, S.A.
Estrada de Tira Chapéu
Praia, Santiago
14/A
54,32
Name Full name/Headquaters Effective
Participation
PERU
CEMENTOS OTORONGO CEMENTOS OTORONGO, S.A.C.
Malecón Cisneros 428 dpto.
1002 Miraflores
Lima
100,00
UNRELATED ACTIVITIES
CIMPOR SERVIÇOS CIMPOR – SERVIÇOS DE APOIO À GESTÃO DE
EMPRESAS, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
CIMPOR SAGESA CIMPOR SAGESA, S.A.
Brasil, 56
36 204 Vigo
100,00
CIMPOR FINANCE CIMPOR FINANCE LIMITED
2 Harbourmaster Place
Custom House Dock
Dublin 1
100,00
CIMPOR B.V. CIMPOR FINANCIAL OPERATIONS, B.V.
Teleportboulevard 140
1043 EJ Amesterdam
100,00
CIMPOR IMOBILIÁRIA CIMPOR IMOBILIÁRIA, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
MECAN MECAN - MANUFACTURA DE ELEMENTOS DE CASAS DE
CONSTRUÇÃO NORMALIZADA, LDA.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
100,00
CIMPOR TRADING CIMPOR TRADING, S.A.
Brasil, 56
36 204 Vigo
100,00
CIMPOR REINSURANCE CIMPOR REINSURANCE, S.A.
74, Rue de Merl, L - 2146
1611 – Luxemburgo
100,00
Name Full name/Headquaters Effective
Participation
CIMPSHIP CIMPSHIP - TRANSPORTES MARÍTIMOS, S.A.
Rua Ivens, nº 3 - B, Edifício Dona Mécia, 2º L,
Freguesia da Sé, Conselho do Funchal
9000 - 039 Funchal
60,00
CIMPOR DEL ECUADOR CIMPOR DEL ECUADOR, S.A.
Distrito Metropolitano de Quito
Província de Pichincha
49,88

4.2. Associated companies

Investments in associated companies, recorded in accordance with the equity method (Note 19) for the year ended 31 December 2009 were as follows:

Name Full name/Headquaters Effective
Participation
OTHER RELATED ACTIVITIES (Portugal)
SETEFRETE SETEFRETE, SGPS, S.A.
Av. Luísa Todi, 1 – 1º
2900 – 459 Setúbal
25,00
INTERNACIONAL AREA - SPAIN
CEMENTOS ANTEQUERA CEMENTOS ANTEQUERA, S.A.
Calle Atarazanas nº 2 - 1º
29005 Málaga
22,98
ARENOR ARENOR, S.L.
Calle Monte Carmelo nº 1 – 5º C
41011 Sevilla
28,44
HORMICESA HOMIGONES MIRANDA CELANOVA, S.A.
Ctra. Casasoá, Km. 0,100
32817 Celanova - Ourense
39,37
AGUEIRO AGUEIRO, S.A.
Parroquía de Rois, Parcela B-26, Pol. Ind. Bergondo
15166 Bergondo - A Coruña
44,79
Name Full name/Headquaters Effective
Participation
INTERNACIONAL AREA - BRAZIL
COMICAN COMPANHIA DE MINERAÇÃO CANDIOTA
Av. Maria Coelho Aguiar, 215 - Bloco E - 8º. Andar - Sala A
Jardim São Luiz - São Paulo
48,00

4.3. Companies consolidated in accordance with the proportional method

The following companies were consolidated in accordance with the proportional method as they are jointly controlled with the other shareholder:

Name Full name/Headquaters Effective
Participation
CEMENT AREA (Portugal)
TEPORSET TEPORSET - TERMINAL PORTUÁRIO DE SETÚBAL, S.A.
Rua Alexandre Herculano, 35
1250 - 009 Lisboa
50,00
INTERNACIONAL AREA - SPAIN
CEISA CEMENTOS ESPECIALES DE LAS ISLAS, S.A.
Calle Secretario Artiles nº 36
35007 Las Palmas de Gran Canaria
50,00
INPROCOI INSULAR DE PRODUCTOS PARA LA CONSTRUCCIÓN
Y LA INDUSTRIA, S.L.
Explanada Muelle Dique del Este s/n
38180 Puerto de Santa Cruz de Tenerife
50,00
INTERNACIONAL AREA - TUNISIA
TCG TERMINAL CIMENTIER DE GABES, G.I.E
Port de Gabes
Gabes
33,33
Name Full name/Headquaters Effective
Participation
INTERNACIONAL AREA - BRAZIL
ECO-PROCESSA ECO-PROCESSA – TRATAMENTO DE RESÍDUOS LTDA.
Av. Rio Branco, 110 – 39º - parte
Cidade do Rio de Janeiro
Estado do Rio de Janeiro
50,00

5. Changes in the consolidation perimeter and fair-value allocation

In the year ended 31 December 2009, the most significant changes in the consolidation perimeter, relate to the acquisition of shareholdings in the Spain business area, amounting to 2 million euros, and the disposal of cement storage and bagging facilities in the Peru business area, for about 8 million euros, owned by Cementos Otorongo S.A. and the El Callao terminal, as well as the corresponding shareholding (100%) in Agrecom - Agregados Comercializados S.A.C.

The impact of these changes in the consolidated statement of financial position was as follows:

Non current assets:
Intangible assets (Note 17)
6
(7)
(1)
Tangible assets (Note 18)
1,774
(7,045)
(5,271)
Investments in associates (Note 19)
60

60
Deferred tax assets (Note 25)
123
(207)
(84)
Total non-current assets
1,963
(7,259)
(5,296)
Current assets:
Inventories

(208)
(208)
Accounts receivable - trade
444
(4)
441
Accounts receivable - other
28
(16)
12
Taxes recoverable
19
(364)
(345)
Other current assets
577
(24)
553
Total current assets
1,068
(615)
452
Total assets
3,031
(7,874)
(4,843)
Non current liabilities:
Loans

1,290
1,290
Obligations under finance leases

383
383
Total non-current liabilities

1,673
1,673
Current liabilities:
Accounts payable - trade
(544)
25
(520)
Accounts payable - other
(2,074)

(2,074)
Taxes payable
(27)
1
(27)
Loans

115
115
Obligations under finance leases

146
146
Other current liabilities
(10)

(10)
Total current liabilities
(2,656)
286
(2,370)
Total liabilities
(2,656)
1,959
(697)
Minority interest (Note 33)
72
(179)
(107)
Net amount
448
(6,094)
(5,647)
Goodwill (Note 16 e 19)
1,571
(2,479)
(909)
Currency translation adjustments

195
195
Capital (gain) / loss

304
304
Accounts receivable / payable - other
(953)
2,707
1,754
Net amount paid / (received)
1,065
(5,368)
(4,303)
Cash and cash equivalents
87
(22)
65
Net assets acquired / (sold)
2,105
(8,097)
(5,992)
Captions Acquisitions Disposals Total

The impact in the consolidated statement of comprehensive income for the year ended 31 December 2009, as result of the above referred acquisitions, was as follows:

Captions Value
Operating income 378
Operating expenses 1,302
Net operating income (923)
Net financial expenses (5)
Profit before income tax (928)
Income tax
Net profit for the year (928)
Attributable to:
Equity holders of the parent (508)
Minority interest (420)

Additionally, in the year ended 31 December 2009, the process of allocating the purchase price to the fair value of net assets of business activities acquired in the preceding year was concluded, which mainly referred to the acquisition of cement manufacturing assets in the India and China business areas and assets intended for the production and commercialisation of cement and concrete in the Canary Islands. The impacts were included under the "transfers" items and were as follows:

Inicial Fair-value Final
Captions measurement allocation measurement
Non current assets:
Intangible assets 22,811 15,985 38,796
Tangible assets 130,436 54,436 184,872
Other investments 654 (385) 270
Accounts receivable - other 2 2
Other non-current assets 17,901 (361) 17,540
Deferred tax assets 8,913 619 9,532
Total non-current assets 180,717 70,295 251,012
Current assets:
Inventories 24,502 (788) 23,714
Accounts receivable - trade 24,512 272 24,784
Accounts receivable - other 1,781 (399) 1,383
Taxes recoverable 3,634 3,634
Other current assets 1,188 194 1,383
Total current assets 55,618 (721) 54,897
Total assets 236,335 69,574 305,909
Non current liabilities:
Deferred tax liabilities (12,179) (21,709) (33,888)
Provisions (4,799) (692) (5,490)
Loans (16,162) (16,162)
Obligations under finance leases (716) (716)
Accounts payable - other (1,238) 1,222 (15)
Total non-current liabilities (35,094) (21,178) (56,272)
Current liabilities:
Accounts payable - trade (14,840) (14,840)
Accounts payable - other (10,274) 83 (10,192)
Taxes payable (1,005) (1,005)
Loans (7,596) (66) (7,662)
Obligations under finance leases (323) (323)
Other current liabilities (1,681) 1,046 (635)
Total current liabilities (35,719) 1,063 (34,657)
Total liabilities (70,813) (20,116) (90,929)
Minority interest (8,473) (5,181) (13,653)
Net amount 157,049 44,278 201,327
Goodwill 154,147 (37,626) 116,521
Investments in associates (7,184) (7,184)
Accounts receivable / payable - other (10,928) 3,138 (7,790)
Net amount paid / (received) 300,268 2,605 302,873
Cash and cash equivalents 8,495 4 8,500
Net assets acquired / (sold) 319,691 (528) 319,163

6. Exchange rates used

The exchange rates used to translate, to euros, the foreign currency assets and liabilities at 31 December 2009 and 2008, as well the results for the years then ended were as follows:

Closing exchange rate Average exchange rate
Currency Segment 2009 2008 Var.% 2009 2008 Var.%
USD Other 1.4406 1.3917 (3.4) 1.39463 1.47134 5.5
MAD Morocco 11.348 11.2665 (0.7) 11.33928 11.43104 0.8
BRL Brazil 2.5113 3.2436 29.2 2.78546 2.68231 (3.7)
TND Tunisia 1.9009 1.8318 (3.6) 1.888 1.83041 (3.1)
MZM Mozambique 44,150.0 35,250.0 (20.2) 37,698.8 35,654.3 (5.4)
CVE Other (Cape Verde) a) 110.265 110.265 110.265 110.265
EGP Egypt 7.8903 7.6857 (2.6) 7.80762 8.07765 3.5
ZAR South Africa 10.666 13.0667 22.5 11.71057 12.0776 3.1
TRY Turkey 2.1547 2.1488 (0.3) 2.16607 1.90964 (11.8)
HKD China 11.1709 10.7858 (3.4) 10.81972 11.46236 5.9
CNY China 9.835 9.4956 (3.5) 9.54026 10.24795 7.4
MOP China 11.506 11.1094 (3.4) 11.33816 12.01416 6.0
PEN Other (Peru) a) 4.162 4.3713 5.0 4.25033 4.34771 2.3
INR India 67.04 67.3931 0.5 68.03312 65.61679 b) (3.6)

a) Segments not individually reported

b) Average exchange rate from 1 April to 31 December 2008.

7. Operating segments

The main profit and loss information for years ended 31 December 2009 and 2008, of the several operating segments, being each of them one geographical area where Group operates, is as follows:

2009 2008
Sales and services rendered Sales and services rendered
External
sales
Inter
segment
sales
Total Operating
results
External
sales
Inter
segment
sales
Total Operating
results
Operating segments:
Portugal 404,240 44,512 448,751 94,027 461,420 85,173 546,594 117,270
Spain 328,069 702 328,771 485 357,751 1,037 358,788 47,594
Morocco 94,152 94,152 33,215 88,849 88,849 30,543
Tunisia 69,857 69,857 11,912 64,021 64,021 9,344
Egypt 240,625 240,625 93,183 161,226 161,226 58,873
Turkey 107,549 107,549 (18,660) 156,128 156,128 (810)
Brazil 427,383 427,383 88,436 401,271 401,271 70,093
Mozambique 80,923 80,923 6,345 77,361 77,361 8,796
South Africa 149,146 3,651 152,797 58,934 136,018 2,211 138,228 38,910
China 81,067 81,067 152 64,266 1,351 65,617 2,194
India 49,565 3,310 52,875 3,790 32,263 32,263 2,394
Others 31,508 31,508 1,253 42,712 42,712 2,042
Total 2,064,083 52,175 2,116,258 373,071 2,043,285 89,772 2,133,057 387,242
Unallocated 21,414 79,347 100,761 3,830 45,577 96,385 141,963 5,400
Eliminations (131,521) (131,521) (186,157) (186,157)
Sub-total 2,085,498 2,085,498 376,901 2,088,862 2,088,862 392,642
Net financial expenses
Share of results of associates
Other investment income
(52,149)
156
(11,117)
(49,189)
(86,735)
1,537
Profit before income tax
Income tax
313,791
(68,113)
258,255
(24,949)
Net profit for the year 245,679 233,306

All inter segment transactions were made at market values.

The above net income includes the full amount of the segments, without considering the following amounts attributable to minority shareholders:

2009 2008
Operating segments:
Portugal 100 99
Spain (444) 634
Morocco 8,227 7,058
Egypt 2,631 1,677
Turkey 629 2,207
Brazil 1
Mozambique 366 830
China (3,317) 1,245
India 543 136
Others (205) (487)
8,530 13,399
Unallocated 123 466
Profit for the year attributable to minority interest 8,653 13,865

Other information:

2009 2008
Fixed capital
expenditure
Depreciation,
amortisation and
impairment losses
Provisions Fixed capital
expenditure
Depreciation,
amortisation and
impairment losses
Provisions
Operating segments:
Portugal 23,026 55,284 272 43,554 54,357 261
Spain 20,997 46,125 161,747 36,365 (1,042)
Morocco 9,998 8,614 10 9,935 8,015 2,404
Tunisia 5,114 7,738 3,437 7,701 (18)
Egypt 8,980 11,080 248 5,904 10,850 3,497
Turkey 49,785 29,581 134 72,826 16,233 201
Brazil 52,163 34,343 303 52,037 30,817 1,390
Mozambique 11,723 5,506 76 9,025 4,662 178
South Africa 8,461 11,483 25,043 7,254 1
China 36,535 4,591 53,347 3,726 332
India 3,630 6,216 (74) 17,742 742
Others (4,375) 1,324 2,006 1,366
226,038 221,886 970 456,602 182,089 7,204
Unallocated 9,786 4,371 1,800 524 2,484 1,925
235,824 226,256 2,770 457,126 184,573 9,129

The increase in depreciation and amortisation results from the acquisitions made at the end of 2008 and the start-up and operation of investments that have been concluded.

In addition, assets and liabilities, by reportable segment, reconciled to the total consolidated amounts as at 31 December 2009 and 2008, are as follows:

2009 2008
Assets Liabilities Net assets Assets Liabilities Net assets
Operating segments:
Portugal 803,419 313,076 490,343 796,430 316,096 480,334
Spain 828,415 621,376 207,039 838,277 550,718 287,559
Morocco 120,834 30,948 89,886 121,836 29,304 92,532
Tunisia 144,823 13,890 130,934 145,997 14,799 131,198
Egypt 416,275 57,092 359,182 390,315 50,003 340,312
Turkey 628,956 159,301 469,655 593,498 103,648 489,850
Brazil 1,183,941 175,803 1,008,137 1,030,166 262,391 767,776
Mozambique 79,574 22,871 56,704 86,389 28,499 57,890
South Africa 287,699 60,398 227,301 231,482 60,377 171,105
China 188,487 167,231 21,255 162,226 130,690 31,536
India 112,704 22,868 89,836 97,752 28,221 69,532
Others 41,095 15,737 25,358 47,132 18,947 28,185
4,836,221 1,660,591 3,175,630 4,541,501 1,593,690 2,947,810
Unallocated 723,759 2,001,390 (1,277,631) 719,785 2,149,473 (1,429,688)
Eliminations (657,610) (657,610) (743,693) (743,693)
Investments in associates 24,992 24,992 97,663 97,663
Total 4,927,362 3,004,371 1,922,991 4,615,255 2,999,470 1,615,786

The assets and liabilities not attributed to reportable segments include (i) assets and liabilities of companies not attributable to specific segments, essentially holding companies and trading companies, (ii) intra-group eliminations between segments and (iii) investments in associates.

Following is a break-down of the information for the years ended 31 December 2009 and 2008, by business segment:

2009 2008
Sales and Sales and
services Fixed capital services Fixed capital
rendered Net assets expenditure rendered Net assets expenditure
Business segment:
Cement 1,591,067 4,025,450 205,061 1,517,530 3,767,339 348,505
Ready-mix and precast concrete 427,684 454,428 14,804 498,538 540,109 75,109
Others 66,747 447,484 15,958 72,794 307,807 33,512
Total 2,085,498 4,927,362 235,824 2,088,862 4,615,255 457,126

8. Other operating income

Other operating income for the years ended 31 December 2009 and 2008 were made up as follows:

2009 2008
Supplementary income 18,478 20,331
Gains on the sale of assets (a) 19,209 20,112
Investment subsidies 7,472 3,806
Reversal of receivables adjustments (Note 27) 4,253 5,120
Own work for the company 2,899 4,606
Reversal of inventories adjustments (Note 26) 163 2,339
Others 10,440 9,287
62,914 65,601

(a) In the financial years ended on 31 December 2009 and 2008, these gains included gains from the sale of CO2 emissions licences and the exchange of CO2 emissions licences for Certified Emission Reductions (''CER'') in the amount of 14,031 thousand euros and 11,467 thousand euros, respectively (Note 44).

9. Cost of goods sold and material used in production

The cost of goods sold and material used in production for the years ended 31 December 2009 and 2008 was made up as follows:

2009 2008
Goods sold 52,776 67,166
Material used in production 525,479 563,603
Gain/(loss) on inventories 666 167
578,921 630,936

10. Payroll costs

The average number of employees of the companies included in the consolidation in the years ended 31 December 2009 and 2008, by business and operating segment, was as follows:

2009 2008
Ready-mix
and precast
Ready-mix
and precast
Cement concrete Others Total Cement concrete Others Total
Segments:
Portugal 659 536 113 1,308 682 583 115 1,380
Spain 650 460 71 1,181 495 452 32 978
Morocco 177 28 205 179 25 203
Tunisia 216 216 221 221
Egypt 463 28 491 458 28 486
Turkey 647 158 9 814 631 167 9 807
Brazil 742 666 9 1,417 725 583 9 1,317
Mozambique 419 41 1 461 407 29 1 437
South Africa 359 174 534 356 185 541
China 867 867 625 625
India 545 545 414 414
Others 71 74 4 148 74 126 199
5,815 2,137 235 8,187 5,266 2,149 194 7,609
Common functions 541 534
5,815 2,137 235 8,728 5,266 2,149 194 8,143

Payroll expenses for the years ended 31 December 2009 and 2008 were made up as follows:

2009 2008
Remuneration 169,297 161,263
Charges on remuneration 37,297 34,307
Social action and other 25,511 21,580
Indemnities 10,141 3,324
Incentive plan (Note 35) 2,261 2,003
Healthcare benefits (Note 34) 1,279 1,136
Insurance 753 737
Retirement benefits (Note 34) 3,072 526
249,610 224,875

The caption ''Social action and other'' includes occupational health, healthcare assistance, professional training and meal allowance costs.

11. Other operating expenses

Other operations expenses for the years ended 31 December 2009 and 2008 were made up as follows:

2009 2008
Receivables adjustments (Note 27) 13,065 9,330
Taxes 12,443 9,913
Subscriptions 3,344 3,289
Donations 2,082 1,296
Fines and penalties 1,017 2,490
Inventory adjustments (Note 26) 1,204 699
Loss on disposal of assets 924 568
Uncollectible debts 209 390
Others 1,143 2,775
35,432 30,749

12. Net financial expenses

Net financial expenses for the years ended 31 December 2009 and 2008 were made up as follows:

2009 2008
Financial expenses:
Interest expense 67,689 114,614
Foreign exchange loss 15,822 12,716
Changes in fair-value:
Hedged assets / liabilities 4,118 16,995
Hedging derivative financial instruments 4,936
Trading derivative financial instruments (a) 29,346 13,675
Financial assets/liabilities at fair value (a) 11,790 16,222
50,190 46,892
Other (b) 12,997 13,595
146,698 187,816
Financial income:
Interest income 15,734 32,093
Foreign exchange gain 22,015 24,622
Changes in fair-value:
Hedged assets / liabilities 4,936
Hedging derivative financial instruments 4,118 16,995
Trading derivative financial instruments (a) 25,904 57,782
Financial assets/liabilities at fair value (a) 10,702 44
45,660 74,821
Other (b) 11,140 7,092
94,548 138,627
Net Financial expenses (52,149) (49,189)
Share of profits of associates:
Loss in associated companies (Note 19) (831) (87,609)
Gain in associated companies (Note 19) 987 853
156 (86,755)
Other 21
156 (86,735)
Investment income:
Gains on holdings 368 542
Gains/(losses) on investments (c) (11,485) 995
(11,117) 1,537

(a) This caption is mainly related to: (i) ''US Private Placements'' fair value changes (Note 37), which were designated as financial liabilities at fair value through profit and loss and (ii) fair value changes of negotiable financial derivative instruments, including two of them that, although contracted to cover exchange rate and interest rate risks associated to ''US Private Placements'' (Note 39), are not qualified by Group for hedge accounting effects.

  • (b) In the years ended 31 December 2009 and 2008, these items essentially include the costs and income relative to the financial actualization of assets and liabilities, the update of estimates with the environmental rehabilitation of quarries, the cash discounts granted and obtained and costs with commissions, guarantees and other bank charges in general.
  • (c) In the year ended 31 December 2009, this item includes: (i) the loss incurred on the sale of the debt instrument issued by the Republic of Austria, in the amount of EUR 8.370 million (Note 20), (ii) the recording of a loss resulting from the evaluation of C + PA - Cimento e Produtos Associados, SA ("C+PA") in accordance with IFRS 5, of EUR 4.249 million (Note 21), and (iii) the appreciation of a portfolio of investment funds classified as a financial asset at fair value through income, in the amount of EUR 1.135 million (Note 20).

In the previous year, it included: (i) the gain on the sale of the 2.82% shareholding in the Egyptian company Misr Cement (Qena), SAE, amounting to EUR 2.086 million and (ii) the devaluation of a portfolio of investment funds classified as a financial asset at fair value through income, amounting to EUR 1.091 million (Note 20).

13. Income tax

The Company and the majority of its subsidiaries in Portugal are subject to Corporate Income Tax, currently at the rate of 25%, plus a Municipal surcharge up to a maximum of 1.5% of taxable income, totalling 26.5%.

The Company is taxed under the special income tax scheme for corporate groups, comprising the companies in which it directly or indirectly holds at least 90% of the capital and which comply with the requirements of law.

Tax on income relating to the other geographic segments is calculated at respective rates in force, as follows:

2009 2008
Spain 30.0% 30.0%
Morroco 30.0% 30.0%
Tunisia 30.0% 30.0%
Egypt 20.0% 20.0%
Turkey 20.0% 20.0%
Brazil 34.0% 34.0%
Mozambique 32.0% 32.0%
South Africa 28.0% 28.0%
China 25.0% 25.0%
India 34.0% 34.0%
Other 25,5% ‐ 30,0% 25,5% ‐ 30,0%

Pursuant to legislation in force in the different jurisdictions in which the Group operates, the corresponding tax returns are subject to review by tax authorities for a period varying from 4 to 5 years, which may be extended under certain circumstances, especially when there are tax losses or ongoing investigations, claims or disputes.

The Board of Directors, based on the positions of its tax consultants and taking into account the recognised responsibilities, believes that any review of these tax returns will not result in adjustments with any significant effect on the consolidated financial statements.

Income tax expense for the years ended 31 December 2009 and 2008 is made up as follows:

2009 2008
Current tax 47,234 68,471
Deferred tax (Note 25) 17,608 2,264
Increases / (decreases) in tax provisions (Note 36) 3,271 (45,786)
Charge for the year 68,113 24,949

Temporary differences between the book value of assets and liabilities and their corresponding value for tax purposes are recognised in accordance with IAS 12 - Income taxes (Note 25).

The reconciliation between the tax rate applicable in Portugal and the effective tax rate in the Group is as follows:

2009 2008
Tax rate applicable in Portugal 26.50% 26.50%
Operational results non taxable (a) (2.76%) (2.78%)
Financial results non taxable (a) 0.68% 6.47%
Benefits by deduction to the taxable profit and to the collect (6.18%) (3.85%)
Increases / (decreases) in tax provisions (b) 1.04% (17.73%)
Adjustments on deferred taxes 0.31% 0.21%
Rate differences 1.51% 1.26%
Other 0.59% (0.42%)
Effective tax rate of the Group 21.71% 9.66%
  • (a) This caption contains the operating and financial results of companies with tax exemption schemes as well as transactions not relevant for tax purposes. Of note are the appropriate results in associates arising under the equity method and the gain on the financial asset held to maturity referred to in Note 20.
  • (b) The year ended 31 December 2008 includes the reversal of the provision that was created by the Company to cover the additional payment of corporate income tax relative to 1997 and 1998 financial years (Note 36).

In addition to the income tax charge for the year, in the years ended 31 December 2009 and 2008, deferred taxes of 663 thousand euros and 230 thousand euros, respectively, were recorded directly in reserves as a reduction (Note 25).

14. Dividends

In the year ended 31 December 2009 a dividend of 18.5 cents per share (23 cents per share in 2008), totalling 122,777 thousand euros (153,151 thousand euros in 2008), was paid as decided by the Shareholders' Annual General Meeting held on 13 May 2009.

In relation to the financial year ended on 31 December 2009, the Board of Directors proposes a dividend of 20 cents per share, subject to approval by the General Meeting of the shareholders to be held on 29 April 2010.

15. Earnings per share

Basic and diluted earnings per share for the years ended 31 December 2009 and 2008 were computed as follows:

2009 2008
Basic earnings per share
Net profit considered in the computation of basic
earnings per share
237,025 219,441
Weighted average number of ordinary shares used to
calculate the basic earnings per share (thousands) (a)
663,831 665,303
Basic earnings per share 0.36 0.33
Diluted earnings per share
Net profit considered in the computation of basic
earnings per share
237,025 219,441
Weighted average number of ordinary shares used to
calculate the basic earnings per share (thousands) (a)
663,831 665,303
Effect of the options granted under the Share Option
Plan (thousands) (Note 35)
1,747 1,515
Weighted average number of ordinary shares used to
calculate the diluted earnings per share (thousands)
665,578 666,818
Diluted earnings per share 0.36 0.33

(a) The average number of shares is weighted by the average number of treasury shares in each of the corresponding financial years (Note 29).

16. Goodwill

The changes in goodwill and related impairment losses in the years ended 31 December 2009 and 2008 were as follows:

South
Portugal Spain Morocco Tunisia Egypt Turkey Brazil Mozambique Africa China India Other Total
Gross assets:
Balances at 1 January 2008 22,548 71,773 27,254 71,546 71,081 350,127 571,738 2,523 103,275 4,747 12,528 1,309,139
Changes in the consolidation perimeter 3,103 68,736 2,335 991 13,284 68,374 156,823
Currency translation adjustments 3,898 (70,503) (78,428) 146 (24,003) 785 (5,484) 218 (173,371)
Additions 7,855 638 1,890 10,383
Write-offs (765) (765)
Transfers 3,812 (6,684) 689 1,911 (296) (569)
Balances at 1 January 2009 29,463 140,914 27,254 71,546 74,979 283,286 494,301 2,668 79,272 20,726 62,890 14,339 1,301,640
Changes in the consolidation perimeter (Note 5) 1,541 (2,479) (938)
Currency translation adjustments (1,944) (1,118) 92,019 (91) 17,843 (681) 1,443 215 107,685
Additions 826 322 1,147
Transfers (2,459) (14,835) (976) (14,381) (32,652)
Balances at 31 December 2009 27,004 128,446 27,254 71,546 73,035 282,168 586,320 2,578 97,115 19,069 49,952 12,397 1,376,883
South
Portugal Spain Morocco Tunisia Egypt Turkey Brazil Mozambique Africa China India Other Total
Accumulated impairment losses:
Balances at 1 January 2008 601 765 24,031 25,397
Write-offs (765) (765)
Balances at 1 January 2009 601 24,031 24,632
Balances at 31 December 2009 601 24,031 24,632
Carrying amount:
As at 31 December 2008
28,862 140,914 3,223 71,546 74,979 283,286 494,301 2,668 79,272 20,726 62,890 14,339 1,277,008
As at 31 December 2009 26,403 128,446 3,223 71,546 73,035 282,168 586,320 2,578 97,115 19,069 49,952 12,397 1,352,251

Goodwill is subject to impairment tests annually and whenever there are indications of possible impairment.

The impairment tests are made based on the recoverable amounts of each of the corresponding business segments (Note 2.3.).

The transfers of the value of goodwill that occurred in the financial years ended 31 December 2009 and 2008 result from the conclusion of processes to allocate the purchase value of the net assets of acquired businesses, as part of business combination processes (Note 5).

For impairment test purposes, considering the financial statement structure adopted for management purposes, goodwill is distributed by groups of cash generating units corresponding to each operating segment (Note 7), due to the existence of synergies between the units of each segment.

The recoverable value of each group of cash-generating units is compared, in the tests performed, with the respective book value. An impairment loss is only recognised when the book value exceeds the higher of the value in use and transaction value. For the value in use, the future cash flows after taxes are discounted based on the weighted average cost of capital (WACC), after taxes, adjusted for the specific risks of each market. For the transaction value, multiples based on business indicators (mainly EBITDA and production capacity), are compared with those calculated for the cash-generating units undergoing these tests.

The cash flow projections are based on the medium and long term business plans approved by the Board of Directors, plus perpetuity.

2009 2008
Segments Currency Goodwill (a) Discount
rate (b)
Long term
rate (c)
Goodwill (a) Discount
rate (b)
Long term
rate (c)
Portugal EUR 26,403 6.3% 1.4% 28,862 7.0% 1.4%
Spain EUR 128,446 6.2% 1.4% 140,914 6.7% 1.5%
Morocco MAD 3,223 7.7% 3.2% 3,223 8.3% 2.1%
Tunisia TND 71,546 7.1% 3.4% 71,546 7.7% 1.9%
Egypt EGP 73,035 8.0% 6.4% 74,979 8.8% 5.5%
Turkey TRY 282,168 8.4% 4.9% 283,286 10.4% 3.9%
Brazil BRL 586,320 7.2% 4.1% 494,301 8.0% 3.3%
Mozambique MZM 2,578 10.0% 7.0% 2,668 10.5% 5.0%
South Africa ZAR 97,115 6.7% 5.0% 79,272 7.4% 4.4%
China CNY 19,069 6.6% 3.5% 20,726 7.4% 3.7%
India INR 49,952 7.2% 5.0% 62,890 8.7% 4.7%
Other - 12,397 10.2% 2.0% 14,339 8,0% ‐ 10,6% 1,1% ‐ 2,0%
1,352,251 1,277,008

The main assumptions used to determine the value for use of goodwill were as follows:

(a) In thousand of euros

(b) In euros

(c) In local currency

The Group examined the impact that a change of 50 basis points in discount rates or in long-term growth rates would have on the recoverable value of the assets of each business area and, apart from the Turkey business area, where such a change would result in an excessive book value compared to the recoverable amount, as shown below, no other situations were identified:

Sensitivity analysis of recoverable value from such rates
Discont rate Long term rate
+ 50 b.p. - 50 b.p. + 50 b.p. - 50 b.p.
Recoverable value of assets of B.A.
Turkey
(millions of euros)
(50) 63 48 (39)

17. Intangible assets

The changes in intangible assets and corresponding accumulated amortisation and impairment losses in the years ended 31 December 2009 and 2008 were as follows:

Industrial Intangible
property and assets
other rights in progress Total
Gross assets:
Balances at 1 January 2008 27,796 84 27,880
Changes in the consolidation perimeter 22,839 176 23,016
Currency translation adjustments (2,466) 1 (2,466)
Additions 10,175 69 10,244
Write-offs, sales and transfers (89) (89)
Balances at 1 January 2009 58,255 330 58,585
Changes in the consolidation perimeter (Note 5) (3) (3)
Currency translation adjustments 769 (7) 761
Additions 18,315 407 18,722
Sales (4) (4)
Write-offs (97) (4) (100)
Transfers 16,403 16,403
Balance at 31 December 2009 93,639 726 94,364
Accumulated amortisation and
impairment losses:
Balances at 1 January 2008 14,578 14,578
Changes in the consolidation perimeter 28 28
Currency translation adjustments (2,079) (2,079)
Increases 3,506 3,506
Write-offs and transfers 22 22
Balances at 1 January 2009 16,055 16,055
Changes in the consolidation perimeter (Note 5) (2) (2)
Currency translation adjustments 729 729
Increases 7,760 7,760
Write-offs (96) (96)
Transfers 274 274
Balance at 31 December 2009 24,719 24,719
Carrying amount:
As at 31 December 2008 42,201 330 42,530
As at 31 December 2009 68,920 726 69,645

The "Industrial property and other rights" caption mainly includes contractual rights, land surface rights and licences, including the use of software.

Transfers essentially result from the attributing of fair values to assets acquired in business combination processes (Note 5 and 16).

18. Tangible assets

The changes in tangible assets and corresponding depreciation in the years ended 31 December 2009 and 2008 were as follows:

Buildings and
other
Basic Transportation Administrative Tools and Other tangible Tangible
assets in
Advance to
suppliers of
Land constructions equipment equipment equipment dies assets progress tangible assets Total
Gross assets:
Balances at 1 January 2008 345,125 713,032 2,934,234 108,550 59,063 9,260 11,728 188,200 24,836 4,394,029
Changes in the consolidation perimeter 6,665 10,240 67,858 4,928 870 647 (31) 8,000 63,976 163,153
Currency translation adjustments (21,331) (32,392) (200,118) (9,209) (3,394) 2 22 (29,057) (2,771) (298,247)
Additions 11,382 37,949 93,088 3,635 2,330 491 1,286 102,664 34,944 287,770
Sales (1,560) (3,954) (12,763) (2,637) (484) (35) (145) (23) (4,111) (25,713)
Write-offs (36) (159) (17,876) (411) (513) (43) (163) (442) (3) (19,648)
Transfers 9,414 19,838 58,113 2,292 1,138 1,959 (1,603) (83,369) (229) 7,552
Balances at 1 January 2009 349,659 744,553 2,922,537 107,147 59,010 12,281 11,094 185,973 116,642 4,508,895
Changes in the consolidation perimeter (Note 5) (449) (1,769) (4,370) 898 (10) (62) 24 (5,739)
Currency translation adjustments 14,034 28,006 136,837 7,846 2,470 112 (39) 7,985 1,347 198,598
Additions 13,077 28,333 59,635 8,907 2,523 476 882 75,195 33,345 222,374
Sales (858) (2,267) (4,856) (7,428) (280) (95) (2) (663) (16,447)
Write-offs (11,529) (1,113) (810) (2,542) (2,548) (21) (427) (1,100) (12) (20,103)
Transfers 53,527 122,406 264,225 13,252 3,136 713 774 (136,215) (141,186) 180,633
Balances at 31 December 2009 417,462 918,148 3,373,198 128,081 64,300 13,465 12,221 131,199 10,136 5,068,211
Accumulated depreciation and
impairment losses:
Balances at 1 January 2008 42,298 346,575 1,978,753 67,828 48,406 7,575 7,539 2,498,974
Changes in the consolidation perimeter 77 1,240 23,343 1,605 617 189 (44) 27,028
Currency translation adjustments (1,792) (16,171) (143,188) (5,750) (2,636) 47 23 (169,467)
Increases 11,881 30,811 124,558 9,314 3,332 632 538 181,067
Decreases (1) (1,672) (11,272) (2,445) (263) (35) (185) (15,873)
Write-offs (113) (17,625) (290) (499) (43) (40) (18,611)
Transfers 525 (463) (2,442) 53 727 1,108 (1,655) (2,147)
Balances at 1 January 2009 52,989 360,206 1,952,127 70,315 49,683 9,473 6,177 2,500,969
Changes in the consolidation perimeter (Note 5) (26) (702) 270 (5) (6) (468)
Currency translation adjustments 836 12,149 97,594 4,679 1,937 57 (26) 117,225
Increases 6,200 39,277 156,483 11,332 3,374 781 1,049 218,496
Decreases (1,564) (3,830) (5,761) (275) (91) (1) (11,524)
Write-offs (2,538) (274) (645) (2,326) (2,486) (21) (360) (8,650)
Transfers (5,408) 20,130 100,023 7,360 1,700 541 44 124,389
Balances at 31 December 2009 52,079 429,899 2,301,049 85,869 53,927 10,740 6,875 2,940,438
Carrying amount:
As at 31 December 2008 296,671 384,346 970,410 36,832 9,327 2,808 4,917 185,973 116,642 2,007,926
As at 31 December 2009 365,383 488,249 1,072,149 42,212 10,373 2,726 5,345 131,199 10,136 2,127,773

The value of the operating land was increased to reflect the estimated future cost of environmental recovery and rehabilitation of the land, which also increased liabilities.

The additions during the financial years ended on 31 December 2009 and 2008 include 4,536 thousand euros and 8,352 thousand euros, respectively, of financial costs related to loans contracted to finance the construction of qualifying assets.

In the year ended 31 December 2009, write-offs include the effect of updating the estimates of landscape recovery of quarries in the Brazil and Morocco business areas, amounting to 11,529 thousand euros. This included in the preceding financial year the sum of 17,150 thousand euros relative to the impact of the replacement of a kiln at a plant in Spain (Symca), due to the equipment becoming obsolete as the result of the investment made.

The transfers made in the year ended 31 December 2009 include the effect of the conclusion of the processes to attribute the purchase value of business activities (Note 5 and 16).

Tangible assets in progress in the year ended 31 December 2009 include the construction and improvement of installations and equipment of the cement sector of several production units, essentially in the Turkey, Brazil, Portugal, Spain and China business areas.

19. Investments in associates

The changes in investments in associates in the years ended 31 December 2009 and 2008 were as follows:

Investment Goodwill Total
Balances at 1 January 2008
Changes in the consolidation perimeter
Equity method effect:
148,512
11,091
15,021
163,533
11,091
On profit (Note 12) (86,755) (86,755)
On shareholders' equity (3,296) (3,296)
Dividends received (1,175) (1,175)
Acquisitions and increases 15,988 15,988
Sales and write-offs (307) (307)
Transfers (1,416) (1,416)
Balances at 1 January 2009 84,057 13,606 97,663
Changes in the consolidation perimeter (Note 5) 60 30 90
Exchange translation adjustments 4 4
Equity method effect:
On profit (Note 12) 156 156
Dividends received (666) (666)
Acquisitions and increases 3,100 3,100
Transfers (69,137) (6,219) (75,356)
Balances at 31 December 2009 17,575 7,416 24,992

In the year ended 31 December 2009, the transfers relate to the reclassification under IFRS 5 as non-current assets held for sale of the Group's shareholding in C+PA and Cementos Del Marquesado, SA (Note 21) and to the effect of attributing fair values to assets acquired by subsidiaries. In the preceding financial year, the results of associate companies included the Group's stake in the loss of C+PA and Arenor, in the amounts of 78.4 million of euros and 7.3 million of euros, respectively, which are negatively influenced by approximately 77 million of euros owing to the recognition of impairment losses on financial assets available for sale (shares of Banco Comercial Português, S.A.).

The breakdown of investment in associates at 31 December 2009 and 2008 is as follows:

2009 2008
Arenor, S.L. 11,502 13,829
Cementos Antequera, S.A. 9,762 9,535
Setefrete, SGPS, S.A. 3,592 3,665
C + P.A. – Cimento e Produtos Associados, S.A. 58,634
Cementos del Marquesado, S.A. 11,076
Sogesso - Sociedade de Gessos de Soure, S.A. 909
Companhia de Mineração Candiota 19 15
Agueiro, S.A. 90
Hormigones Miranda Celanova, S.A. 26
24,992 97,663

Financial information on associates as of 31 December 2009 and 2008 is as follows:

2009 2008
Total assets
Total liabilities
Total shareholders' equity
135,421
(62,086)
73,335
391,806
(152,239)
239,567
Group's share of shareholders' equity 24,992 97,663
Sales and services rendered 43,136 42,065
Net profit for the year (69) (189,758)
Group's share of net profit for the year 156 (86,755)

20. Other investments

The changes in ''Other investments'' in the years ended 31 December 2009 and 2008 were as follows:

Available-for-sale financial Financial assets at Held to maturity
assets
Cost
Fair value fair-value through
profit and loss
financial assets Total
Gross investment:
Balances at 1 January 2008 14,804 9,754 149,669 174,227
Changes in the consolidation perimeter 298 106 404
Currency translation adjustments (353) 30 (9) (29,869) (30,200)
Revaluation/adjustments 499 (1,091) (592)
Increases 314 2,195 4,022 6,531
Transfers (2,806) (2,806)
Sales (1,872) (8,382) (10,254)
Write-offs (34) (34)
Balances at 1 January 2009 10,352 4,096 3,029 119,801 137,277
Currency translation adjustments 128 (1) 14,476 14,602
Revaluation/adjustments (227) 1,135 908
Increases 257 124 380
Transfers (87) (97) 97 (87)
Sales (2,227) (134,273) (136,501)
Balances at 31 December 2009 8,422 3,869 4,066 224 16,580
Impairment losses:
Balances at 1 January 2008 9,914 9,914
Currency translation adjustments (35) (35)
Transfers (2,695) (2,695)
Sales (1,301) (1,301)
Balances at 1 January 2009 5,882 5,882
Increases 759 759
Balances at 31 December 2009 6,642 6,642
Carrying amount:
As at 31 December 2008 4,470 4,096 3,029 119,801 131,395
As at 31 December 2009 1,780 3,869 4,066 224 9,939

In this caption are included: (i) the available-for-sale financial assets, measured at fair value, both at acquisition cost, when there's no market price quoted in an active market and which value cannot be measured in a reliable way, adjusted to the estimated impairment losses; (ii) financial assets at fair value through profit and loss, constituted, essentially, by a portfolio of investment funds, and (iii) financial assets held to maturity.

In 2009, the Group sold the debt instrument classified under financial assets held to maturity issued by the Republic of Austria maturing in 2011, having been recognized under the item ''Investment income - Losses on investment'', totalling a loss of 8,370 thousand euros (Note 12).

In the year ended 31 December 2008, the Group sold the investment in Misr Cement (Qena), S.A.E. measured by 8,382 thousand euros. Additionally, the accumulated amount in reserves was transferred to profit and loss, totalising a profit of 2,086 thousand euros (Note 12).

21. Non-current assets held for sale

Non-current assets held for sale at 31 December 2009, correspond to the Group's shares in C+PA and in Cementos Del Marquesado SA, amounting to 47,200 thousand euros and 11,056 thousand euros, respectively. These values are expected to be recovered through their sales, and arrangements are in progress in that regard.

Since the value resulting from an independent evaluation of C+PA is lower than its carrying amount in accordance with IFRS 5, it was measured by its fair value less estimated sales costs, which resulted in the reporting of a loss of 4,249 thousand euros under "Investment incomes - Losses on investments'' (Note 12).

22. Accounts receivable - other

This caption at 31 December 2009 and 2008 was made up as follows:

2009 2008
Current Non-current Current Non-current
Participated and participating companies 1,214 1,475 622 875
Other shareholders 784 385 843 389
Advances to suppliers or fixed assets 128 32
Other debtors 29,013 10,684 30,169 10,299
31,139 12,544 31,666 11,563
Accumulated impairments (2,284) (672) (2,034) (680)
28,855 11,871 29,633 10,883

Other debtors include the accounts receivable through the disposals of tangible fixed assets and accounts receivable resulting from supplementary income (Note 8).

In the years ended 31 December 2009 and 2008, those accounts receivable ageing were as follow:

2009 2008
Current Non-current Non-current
Undue balances 25,659 11,685 26,420 10,916
Due balances:
Up to 180 days 1,988 2,055
From 180 to 360 days 272 127
More than 360 days 3,219 859 3,063 647
31,139 12,544 31,666 11,563

Impairments to accounts receivable - other

In the years ended 31 December 2009 and 2008 the changes in this caption were as follows:

Balances at 1 January 2008 4,154
Changes in the consolidation perimeter 38
Currency translation adjustments 289
Increases 886
Decreases (2,599)
Utilisation (53)
Balances at 1 January 2009 2,714
Currency translation adjustments (49)
Increases 127
Decreases (55)
Utilisation (124)
Transfers 343
Balances at 31 December 2009 2,956

Increases and decreases in these impairments are recognized in the consolidated statement of comprehensive income in captions 'Other operating expenses' and 'Other operating income', respectively.

23. Taxes recoverable and taxes payable

Taxes recoverable and taxes payable at 31 December 2009 and 2008 were made up as follows:

2009 2007
Current Non-current Current Non-current
Taxes recoverable:
Corporate income tax 14,376 7,504
Personal income tax 6,010 4,365
Value added tax 30,148 6,826 28,802
Social security contributions 3
Other 2,123 21,207 2,678 16,349
52,660 28,033 43,349 16,349
2009 2007
Current Non-current Current Non-current
Taxes payable:
Corporate income tax 6,825 14,513
Personal income tax 4,216 3,846
Value added tax 15,131 984 13,971 1,499
Social security contributions 4,909 4,530
Other 6,015 4,275
37,096 984 41,135 1,499

In the years ended 31 December 2009 and 2008, non-current recoverable taxes in the caption 'Other', include a judicial deposit in the amount of 15,984 thousand euros and 15,620 thousand euros, respectively, made by a subsidiary in the Brazil business area, due to a judicial divergence in relation with the relevant applicable tax rate. To address this dispute the Group has established a liability under Provisions for other contingencies corresponding to the amount of the referred deposit, though it is not foreseen that the settlement of this situation will result in negative equity impacts.

24. Other current and non-current assets

Other current and non-current assets at 31 December 2009 and 2008 were made up as follows:

2009 2008
Current Non-current Non-current
Accrued interest 1,029 1,360
Derivative financial instruments (Note 39) 19,349 10,266 4,492 16,527
Leases (a) 1,409 21,462 1,227 16,987
Employee benefits (Note 34) 58 227
Insurances 373 591
Other deferred costs and accrued income 3,694 460 2,855 361
25,912 32,188 10,751 33,874

(a) Includes a contract of lease of land for aggregate extraction and the respective exploitation right.

25. Deferred taxes

The changes in deferred taxes in the years ended 31 December 2009 and 2008 were as follows:

Tax losses Provisions
for risks
Available
for-sale
Intangible Tangible carried and Doubtful financial
Deferred tax assets: assets Goodwill assets forward charges accounts Inventories Investments assets Other Total
Balances at 1 January 2008
Changes in the consolidation perimeter
1,215
49,021
14,003
(12)
9,798
7,239
20,929
1,482
2,185
191
2,187
856

22,990
123,185
8,899
Currency translation adjustments (77) (8,315) (1,591) (2,445) (2,756) (77) 21 (5) (1,744) (16,989)
Income tax (Note 13) (609) (8,479) (3,032) 3,256 (333) (698) (642) (78) (1,128) (11,742)
Shareholders' equity (Note 13) 1,240 (1,406) (165)
Transfers 1 (137) (11) (1) (148)
Balances at 1 January 2009 530 32,226 9,368 17,711 20,563 1,590 1,567 774 18,711 103,039
Changes in the consolidation perimeter (Note 5) (84) (84)
Currency translation adjustments 75 8,540 1,659 848 2,788 (46) (56) 4 738 14,548
Income tax (Note 13) (110) (7,857) 753 7,441 4,151 46 349 37 (14,882) (10,071)
Shareholders' equity (Note 13) (55) 1,537 (2,232) (750)
Transfers 70 561 (16) 9 624
Balances at 31 December 2009 495 32,909 11,850 26,421 29,023 1,589 1,868 815 2,335 107,305
Provisions Available
Intangible Tangible Tax losses
carried
for risks
and
Doubtful for-sale
financial
assets Goodwill assets forward charges accounts Inventories Investments assets Other Total
Deferred tax liabilities:
Balances at 1 January 2008 134 39,100 136,242 4,199 11,539 13 7,022 198,249
Changes in the consolidation perimeter 7,892 4,286 12,178
Currency translation adjustments (12) (3,041) (7,174) (9) (1,790) (12,026)
Income tax (Note 13) (137) 2,586 (3,228) 262 (11,539) 2,577 (9,479)
Shareholders' equity (Note 13) (28) 93 65
Transfers 8,400 8,400
Balances at 1 January 2009 7,878 38,646 138,525 4,423 106 7,809 197,388
Currency translation adjustments (86) 3,894 370 367 1,972 6,517
Income tax (Note 13) (244) 2,903 (5,251) 6,155 4,292 (318) 7,536
Shareholders' equity (Note 13) (27) (60) (87)
Transfers 351 22,044 104 22,499
Balances at 31 December 2009 7,899 45,443 155,688 10,918 46 9,567 233,853
Carrying amount:
As at 31 December 2008
(7,348) (6,420) (129,157) 17,711 16,139 1,590 1,567 774 (106) 10,902 (94,348)

The deferred tax assets are recorded directly on shareholders' equity when the situations that have originated them have similar impact, namely:

  • The deferred tax assets and liabilities recorded in Reserves related to provisions, resulted from the tax effect associated to the actuarial gains and losses recorded directly in Reserves (Note 2.19.);
  • The deferred tax liabilities related to Available-for-sale financial assets, resulted from its valuations to market values, which are recorded on Fair value reserve.

Temporary differences originating deferred taxes are influenced by the allocation of fair values, without tax relevance, to assets and liabilities acquired in business combination processes, with significant impact on tangible assets and, for most types, differences in valuation and the accounting policies between the accounting basis of assets and liabilities of the Group companies and the corresponding tax base.

At 31 December 2009 the Group had tax losses carried forward of 96,621 thousand euros (2008: 86,688 thousand euros) for deduction from future tax profits; deferred tax asset of 26,421 thousand euros was recognised (2008: 17,711 thousand euros). Deferred tax assets of 6,281 thousand euros (2008: 26,816 thousand euros) have not been recognised due to the uncertainty as to their recovery, of which 1,400 thousand euros (2008: 21,203 thousand euros) expire in 2010.

Deferred tax assets were recognized as it is probable that future taxable profits will occur, which could be used to recover fiscal losses and temporary differences. This evaluation was performed in accordance with the company's business plans, periodically reviewed and actualized.

26. Inventories

Inventories at 31 December 2009 and 2008 were made up as follows:

2009 2008
Raw, subsidiary and consumable materials 214,240 227,136
Work in process 57,199 56,155
Finished and semi-finished products 23,658 35,754
Merchandise 8,170 10,369
Advances on purchases 912 7,364
304,179 336,778
Accumulated impairments (9,879) (8,929)
294,300 327,849

Inventory impairments

The changes in inventories adjustments in the years ended 31 December 2009 and 2008 were as follows:

Balances at 1 January 2008 10,886
Currency translation adjustments (218)
Increases (Note 11) 699
Decreases (Note 8) (2,339)
Utilisation (99)
Balances at 1 January 2009 8,929
Currency translation adjustments 62
Increases (Note 11) 1,204
Decreases (Note 8) (163)
Utilisation (154)
Balances at 31 December 2009 9,879

Increases and decreases in these impairments are recognized in the consolidated statement of comprehensive income in captions 'Other operating expenses' and 'Other operating income', respectively.

27. Accounts receivable -- trade

This caption at 31 December 2009 and 2008 was made up as follows:

2009 2008
Trade receivables 206,963 250,809
Notes receivable - trade 47,146 51,737
Doubtful trade accounts receivable 72,780 63,598
Advances to suppliers 6,742 7,253
333,631 373,397
Acummulated impairments (69,429) (59,954)
264,202 313,443

Impairments to accounts receivable - trade

During the years ended 31 December 2009 and 2008, the changes in this caption were made up as follows:

Balances at 1 January 2008 61,599
Changes in the consolidation perimeter 879
Currency translation adjustments (1,451)
Increases (Note 11) 9,330
Decreases (5,076)
Utilisation (5,327)
Balances at 1 January 2009 59,954
Changes in the consolidation perimeter 185
Currency translation adjustments 206
Increases (Note 11) 13,065
Decreases (Note 8) (4,253)
Utilisation (2,121)
Transfers 2,393
Balances at 31 December 2009 69,429

Increases and decreases in these impairments are recognized in the consolidated statement of comprehensive income in captions 'Other operating expenses' and 'Other operating income', respectively.

In the years ended 31 December 2009 and 2008, the ageing of this caption, was as follows:

2009 2008
Undue balances 189,085 245,972
Due balances:
Up to 180 days 65,788 77,557
From 180 to 360 days 7,430 3,777
More than 360 days 71,328 46,090
333,631 373,397

The book value of the accounts receivable is close to its fair value.

The Group does not have a significant concentration of credit risk, as the risk is spread over a broad range of trade and other debtors. The recognized adjustments represent the estimated loss on the accounts receivable, as a result of the credit risk analysis, after deducting the amounts covered by credit insurance and other warranties.

28. Share capital

The Company's fully subscribed and paid up capital at 31 December 2009 consisted of 672,000,000 privatized shares, listed on Euronext Lisbon market, with a nominal value of one euro each.

The official qualifying shareholders are disclosed in appendix.

29. Treasury shares

Commercial legislation relating to treasury shares requires that a free reserve in an amount equal to the cost of treasury shares be frozen while the shares are not sold. In addition, the applicable accounting rules require that gains and losses on the sale of treasury shares be recorded in reserves.

At 31 December 2009 and 2008 Cimpor had 7,974,587 and 8,476,832 treasury shares, respectively.

The changes in treasury shares in the years ended 31 December 2009 and 2008 were as follows:

Quantity Value
Balances at 1 January 2008 4,002,209 (19,927)
Treasury shares sale (1,168,620) 3,872
Treasury shares buy 5,643,243 (25,586)
Balances at 1 January 2009 8,476,832 (41,640)
Treasury shares sale (502,245) 1,735
Balances at 31 December 2009 7,974,587 (39,905)

30. Currency translation adjustments and hedges

Exchange translation adjustments result from the translation to euro of the foreign currency financial statements of subsidiaries included in the consolidation. In addition, this caption includes the effect of derivative financial instruments contracted to hedge investments in foreign entities (Note 39), to the extent that they comply with the criteria defined in IAS 39, as regards formalization and efficiency of the hedge.

The changes in this caption in the years ended 31 December 2009 and 2008 were as follows:

Balances at 1 January 2008 183,834
Currency translation adjustments (333,541)
Balances at 1 January 2009 (149,706)
Currency translation adjustments 208,293
Balances at 31 December 2009 58,587

No derivative instruments for the purpose of hedging investment in foreign entities were contracted in the financial years ended on 31 December 2009 and 2008.

31. Reserves

The changes in these captions in the year ended 31 December 2009 and 2008 were as follows:

Fair
Legal Free value Hedging
reserve reserves reserve operations Total
Balances at 1 January 2008 106,900 171,695 2,098 (8,742) 271,950
Appropriation of consolidated profit 12,565 12,565
Purchase/(Sale) of treasury shares 722 722
Share purchase options (Note 35) 2,453 2,453
Actuarial gain and loss on employee benefit plans (Note 34) (2,811) (2,811)
Adjustments in equity investments in associates (3,296) (3,296)
Changes in fair value of hedging financial instruments 3,265 3,265
Changes in fair value of available-for-sale investments (1,736) (1,736)
Balances at 1 January 2009 119,465 168,762 362 (5,477) 283,112
Appropriation of consolidated profit 7,700 7,700
Sale of treasury shares (200) (200)
Share purchase options (Note 35) (2,291) (2,291)
Actuarial gain and loss on employee benefit plans (Note 34) (4,167) (4,167)
Changes in fair value of hedging financial instruments 3,469 3,469
Changes in fair value of available-for-sale investments (167) (167)
Balances at 31 December 2009 127,165 162,104 195 (2,009) 287,456

Commercial legislation establishes that at least 5% of annual net profit must be appropriated to a legal reserve until the reserve equals at least 20% of share capital. This reserve is not available for distribution except upon liquidation of the company, but can be used to absorb losses once the other reserves have been exhausted, or to increase capital.

32. Retained earnings

The changes in retained earnings in the years ended 31 December 2009 and 2008 were as follows:

Balances at 1 January 2008 384,470
Appropriation of consolidated profit 138,273
Share purchase options (Note 35) (450)
Actuarial gain and loss on employee benefit plans (Note 34) (294)
Other (141)
Balances at 1 January 2009 521,858
Appropriation of consolidated profit 88,964
Share purchase options (Note 35) 4,552
Other (34)
Balances at 31 December 2009 615,340

33. Minority interest

The changes in this caption in the years ended 31 December 2009 and 2008 were as follows:

Balances at 1 January 2008 102,880
Changes in the consolidation perimeter 8,473
Change resulting from currency translation 2,785
Dividends (13,508)
Actuarial gain and loss on employee benefit plans (Note 34) (62)
Increase in investments (2,936)
Other changes (776)
Net profit for the year attributable to minority interests 13,865
Balances at 1 January 2009 110,720
Changes in the consolidation perimeter (Note 5) 107
Change resulting from currency translation (5,329)
Dividends (13,260)
Actuarial gain and loss on employee benefit plans (Note 34) 75
Fair value allocation in acquired subsidiaries (Note 5) 5,181
Increase in investments (13,658)
Net profit for the year attributable to minority interests 8,653
Balances at 31 December 2009 92,488

34. Employee benefits

Defined benefit plan

The Group has defined benefit retirement pension plans and healthcare plans, for which the liability is determined annually based on actuarial valuations made by independent entities, the cost determined by these valuations being recognised in the year.

Most of the liability for the retirement benefit plans has been transferred to pension funds managed by specialised independent entities.

The valuations as of 31 December 2009 and 2008 were made using the ''Projected Unit Credit'' method and were based in the following assumptions and technical bases:

2009 2008
Actuarial technical rate (in local currency)
Portugal 5,25 % and 5,50% 6.00%
Spain 5.00% 5.00%
South Africa 10.39% 8.40%
India 7.50% 5.75%
Morocco 5.11% 5.55%
Annual pension growth rate
Portugal 2.50% 2.50%
Spain 2.00% 2.50%
Annual fund income rate
Portugal 5,25 % and 5,50% 6.00%
Spain 5.00% 5.90%
Annual salary growth rate
Portugal 2,50% and 3,00% 2.50%
Spain 3.00% 3.50%
India 7.00% 7.00%
Mortality tables
Portugal TV88/90 TV88/90
Spain PERMF 2000 PERMF 2000
South Africa SA 85‐90 SA 85‐90
India LIC LIC
Morocco TV 88/90 TV 88/90
Disability tables
Portugal EKV 80 EKV 80
Nominal growth rate of medical costs
Portugal
Growth rate of medical costs N/A N/A
Medical inflation rate 2.50% 2.50%
Growth rate of medical costs by age 1,5% till 60, 1,5% till 60,
2% between 60 and 85, 2,5% between 60 and 85,
‐1,5% after 85 years old ‐1,5% after 85 years old
South Africa 8.39% 6.40%
Morocco 3.00% 3.00%

The changes to actuarial assumptions are justified by changes in market conditions. The discount rates of the liabilities were estimated based on long-term rates of return of highly rated bonds and with maturities similar to those liabilities. The salary growth rates were determined in accordance with the wage policy of the Group for the indicated segments.

In accordance with the actuarial valuations the pension and healthcare benefits costs for the years ended 31 December 2009 and 2008 were as follows:

Pension plans
2009 2008
Current service cost 912 1,069
Interest cost 4,242 3,918
Curtailments / settlements / constitutions (2,601)
Expected return of the plans' assets (4,021) (3,531)
Total cost/(income) of the pension plans (I) 1,134 (1,146)
Healthcare plans
2009 2008
Current service cost 257 435
Interest cost 1,022 812
Curtailments / settlements / constitutions 2,042
Total cost/(income) of the healthcare plans (II) 1,279 3,289
Total cost/(income) of the defined benefit plans (Notes 10 and 36) (I) + (II) 2,412 2,144

The changes in the amount of the defined benefit plans and fund assets in the years ended 31 December 2009 and 2008 were as follows:

Pension plans Healthcare plans Total
2009 2008 2009 2008 2009 2008
Defined benefit liability - 1 January 73,181 81,645 17,726 16,096 90,907 97,741
Changes in the consolidation perimeter 1,203 1,203
Benefiits and bonuses paid (5,465) (5,944) (1,384) (782) (6,850) (6,726)
Current service cost 912 1,069 257 435 1,169 1,504
Curtailments / settlements / constitutions (a) (2,601) 2,042 (559)
Interest cost 4,242 3,918 1,022 812 5,264 4,730
Actuarial gains and losses 6,541 (5,999) 1,524 (636) 8,065 (6,635)
Exchange differences (49)
(109)
157
(241)
108
(350)
Defined benefit liability - 31 December 79,363 73,181 19,301 17,726 98,664 90,907
Value of the pension funds - 1 January 69,807 79,300 69,807 79,300
Changes in the consolidation perimeter 940 940
Transfers (874) (874)
Contributions 3,518 3,899 3,518 3,899
Benefits and bonuses paid (5,465) (5,952) (5,465) (5,952)
Expected income of the funds' assets 4,021 3,531 4,021 3,531
Actuarial gain in income from the funds' assets 2,327 (11,036) 2,327 (11,036)
Exchange differences (21) (21)
Value of the pension funds - 31 December 74,186 69,807 74,186 69,807

(a) Refers to changes on long term benefits structures, which affect actuarial valuations of future responsibilities, for past services.

From the date of transition to IFRS, the Group applied the new provisions of IAS 19 - Employee benefits, recognising actuarial gains and losses directly in the specific item of equity. The movements of net actuarial gains and losses during the years ended 31 December 2009 and 2008 were as follows:

2009 2008
Balances at 1 January (13,505) (10,694)
Changes during the year:
Related to the liabilities (8,065) 6,635
Related to the funds 2,327 (11,036)
Corresponding deffered tax 1,496 1,652
Minorities (Note 33) 75 (62)
Balances at 31 December (17,672) (13,505)

In addition, actuarial gains and losses include the following experience adjustments:

2009 2008
Related to the liability (1,141) (2,257)
Related to the funds assets 2,327 (11,036)

The difference between the present value of the benefit plan liability and the market value of the funds' assets for the last five years ended 31 December was as follows:

Pension plans 2009 2008 2007 2006 2005
Liability 79,363 73,181 81,645 88,592 91,598
Value of the pension funds (74,186) (69,807) (79,300) (81,781) (79,646)
Deficit 5,177 3,374 2,345 6,812 11,952
Liability for employee benefits:
Current liability
Non-current liability
3,168
2,067
3,847
(246)
1,220
1,773
2,324
5,006
5,288
6,663
Fund surplus (Note 24) 5,235
(58)
3,601
(227)
2,993
(647)
7,330
(519)
11,952
Total exposure 5,177 3,374 2,345 6,812 11,952
Healthcare plans 2009 2008 2007 2006 2005
Liability for employee benefits:
Current liability
Non-current liability
1,384
17,917
838
16,888
841
15,255
967
19,866
739
20,714
Total exposure 19,301 17,726 16,096 20,833 21,452

The Group has not established funds for the health plans. The main assets of the funds at 31 December 2009 and 2008 are as follows:

2009 2008
Shares 20.4% 15.8%
Fixed rate bonds 42.7% 42.4%
Variable rate bonds 21.5% 19.8%
Real estate investment funds, hedge funds, cash and insurance 15.5% 22.1%
100.0% 100.0%

Defined contribution plans

In the years ended 31 December 2009 and 2008 the Group incurred on costs of 1,939 thousand euros and 1,672 thousand euros, respectively, with defined contribution plans (Note 10).

35. Incentive plan

A Share Purchase Plan for Employees and a Cimpor Share Purchase Option Plan were approved by the Shareholders' General Meeting held on 13 May 2009.

The Board of Directors of Cimpor -- Cimentos de Portugal, SGPS, S.A. decides on who is to be a beneficiary of the Share Purchase Plan for Employees, except for members of the Board, in their case the decision is made by the Remuneration Determination Commission.

The beneficiaries have the right to purchase shares at a price equal to seventy-five percent of the closing price on the transaction day, up to an overall amount not exceeding half of their gross monthly remuneration.

The bodies referred to above also decide on who is to be a beneficiary of the Cimpor Share Purchase Option Plan, being granted the right to purchase Cimpor shares (initial options) at a price not less than seventy-five percent of the average closing listed prices on the sixty Stock Exchange sessions immediately preceding that date. For each option exercised the beneficiary is given the option to acquire one share in each of the following three years (derived options) at the same price.

The options exercised and shares purchased in the years ended 31 December 2009 and 2008 under these incentive plans, as well as the derived options exercised under the earlier plans were as follows:

2009 2008
PLAN Nº of
exercised
shares
(Note 29)
Unit price Date Nº of
exercised
shares
(Note 29)
Unit price Date
Share purchase options - derived options:
- Series 2005 276,700 3.30 17 March
- Series 2006 240,440 4.05 17 March
- Series 2007 229,610 4.90 17 and 28 March
- Series 2008 -
Shares purchased options granted 326,900 2.85 1 June 264,490 4.25 27 May
326,900 1,011,240
Shares purchased by employees 175,345 3.263 14 May 157,380 4.565 13 May
502,245 1,168,620

The changes in this liability in the years ended 31 December 2009 and 2008 were as follows:

2009 2008
Changes in the year:
Outstanding at the beginning of the year 1,515,420 1,491,250
Issued during the year 1,356,000 1,112,400
Exercised during the year (326,900) (1,011,240)
Lapsed during the year and not exercised (797,390) (76,990)
Outstanding at the end of the year (Note 15) 1,747,130 1,515,420
Details of options issued during the year:
Maturity date June 2009
March 2010, 2011, 2012
May 2008
March 2009, 2010, 2011
Exercise price (euros) 2.85 4.25
Total value exercised (thousands of euros) 3,865 4,728
Cost for the year included in personnel costs 1,252 1,091
Details of options exercised during the year:
Average exercise price (euros) 2.85 4.09
Total value exercised (thousands of euros) 932 4,136

The fair value of the share options granted, reflected in ''Payroll costs'', was calculated based on the Black-Scholes-Merton Model, and it was recognised costs of 2,261 thousand euros in 2009 (Note 10) (2,003 thousand euros in 2008) relating to ''Equity Settled'' payment plans, as follows:

2009 2008
Share purchase option plans:
- Issued during the year 1,252 1,091
- Issued in prior years 818 673
Shares purchased by employees 191 239
Cost of the exercise (Notes 10, 31 and 32) 2,261 2,003

The following assumptions were used in the valuations as of 31 December 2009 and 2008:

2009 2008
Price per share 4.85 6.00
Exercise price 2.85 4.25
Volatility 45,02 ‐ 51,46% 30.2%
Dividend yield 3.81% 3.83%

36. Provisions

In the year ended 31 December 2009 and 2008, the classification between current and non-current were as follows:

2009 2008
Non-current provisions:
Provisions for tax risks 65,248 59,842
Environmental rehabilitation 38,773 45,901
Provisions for personnel 8,358 6,459
Other provisions for risks and charges 41,325 40,172
153,704 152,374
Current provisions:
Environmental rehabilitation 250 250
Provisions for personnel 214 952
Other provisions for risks and charges 498 938
962 2,140
154,667 154,514

The changes in the provisions in the years ended 31 December 2009 and 2008 were as follows:

Provisions for tax
risks
Environmental
rehabilitation
Provision for
staff
Other provisions
for risks and
charges
Total
Balances at 1 January 2008 102,947 45,239 7,857 38,061 194,103
Changes in the consolidation perimeter 144 4,523 4,667
Currency translation adjustments 581 (5,112) (1,188) (4,989) (10,707)
Increases 6,196 6,448 3,286 9,976 25,906
Decreases (49,877) (6) (1,328) (3,636) (54,847)
Utilisation (5) (577) (890) (3,137) (4,609)
Transfers 15 (326) 312
Balances at 1 January 2009 59,842 46,151 7,411 41,110 154,514
Currency translation adjustments (291) 2,957 454 5,320 8,440
Increases 5,739 6,907 730 2,984 16,359
Decreases (16,497) (75) (2,343) (18,915)
Utilisation (43) (449) (7) (5,856) (6,355)
Transfers (45) 61 609 624
Balances at 31 December 2009 65,248 39,023 8,572 41,823 154,667

In the year ended 31 December 2008, the decreases in provisions for tax risks included 49,574 thousand euros regarding the write-off of the provision that was made to cover the additional assessments of the Corporate income tax for the years of 1997 and 1998, as a result of a decision of the Chamber of the Supreme Administrative Court, in the first half of 2008, which has since been confirmed by the Plenary of that Chamber, granting the appeal brought by the Company in opposition to the orders by the Secretary of State for Treasury and Finance which rejected the requests for payment of those assessments.

The provisions for environmental rehabilitation represent the Group's legal or implicit obligation to rehabilitate land used for quarries. Payment of this liability depends on the period of operation and the beginning of the related work.

Provisions for staff essentially relate to the estimated costs of restructuring and exclude liability for pension and healthcare plans.

The other provisions for risks and charges cover specific business risks resulting from the Group's normal operations, which include a provision of approximately 6,000 thousand euros, corresponding to the contribution that the Group has agreed to make, in the event of an agreement with the Government of Economic Defence Council, as a result of the administrative charges brought by the Economic Law Department of the Ministry of Justice in Brazil for alleged economic violations in the cement and ready-mix concrete markets. The eventual signing of that agreement would not signify any admission of guilt or acknowledgement of illegal conduct.

The increases and decreases in the provisions in the years ended 31 December 2009 and 2008 were recorded by corresponding entry to the following accounts:

2009 2008
Tangible assets:
Land (4,659) 4,425
Intangible assets:
Concessions 1,375
Profit and loss for the year:
Supplies and services 285 5
Payroll 528 (186)
Provisions 2,770 6,975
Financial expenses 1,452 5,568
Financial income (7,402)
Income tax (Note 13) 3,271 (45,786)
Shareholders' equity:
Free reserves (176) 57
(2,556) (28,941)

The caption financial expenses include the financial actualizations of the provision for environmental rehabilitation. Financial income mainly arises from the update of estimates of those liabilities. The amounts recorded in free reserves correspond to the actuarial gains and losses.

37. Loans

Loans at 31 December 2009 and 2008 were made up as follows:

2009 2008
Non-currents liabilities:
Bonds 853,745 883,055
Bank loans 783,192 1,028,075
Other loans 220
1,637,157 1,911,130
Currents liabilities:
Bank loans 453,439 201,177
Other loans 84 324
453,523 201,501
2,090,680 2,112,631

Bonds

Non-convertible bonds at 31 December 2009 and 2008 were made up as follows:

Issuer Financial instrument Issue Date Interest rate Repayment
Date
2009
Non
current
2008
Non
current
Cimpor Financial Operations B.V. Eurobonds 27.May.04 4.50% 27.May.11 611,129 608,107
Cimpor Financial Operations B.V. US Private Placements 10Y 26.June.03 5.75% 26.June.13 97,152 102,762
Cimpor Financial Operations B.V. US Private Placements 12Y 26.June.03 5.90% 26.June.15 145,464 172,186
853,745 883,055

The above US Private Placements are designated as fair value liabilities through profit and loss, as a result of applying the transitional provisions of IAS 39, in the year ended 31 December 2005.

Within the scope of the measures adopted to improve the Cimpor rating, more flexible financial covenants were negotiated with the debt holders. In return, Cimpor anticipated the reimbursement of 50 million of USD and had increased the spread for the remaining debt amount. The impact of these operations in the fair value of the financial instruments in question reached 14 million of euros, recorded as financial expenses (Note 12).

At 31 December 2009, the difference between the fair value and nominal value of the ''U.S. Private Placements'' amounted to 3,115 thousand euros (15,344 thousand euros in 2008).

Bank loans

Bank loans at 31 December 2009 and 2008 were made up as follows:

Non-current
Type Currency Interest rate 2009 2008
Bilateral loan EUR Euribor + 0,275% 199,627
Bilateral loan EUR Euribor + 0,950% 37,426
Bilateral loan EUR Euribor + 0,550% 299,526
Bilateral loan EUR Euribor + 0,300% 186,667
Bilateral loan EUR Euribor + 0,750% 111,997
Bilateral loan EUR Euribor + 0,300% 166,455
Bilateral loan EUR Euribor + 0,275% 280,000
Bilateral loan EUR Euribor + 1,775% 200,000
EIB Loan EUR EIB Basic Rate 33,333 40,000
Bilaterals loans EUR Euribor + [0,25% - 1,30%] 150,049 72,022
Bilaterals loans BRL Several 8,013 7,280
Bilaterals loans CVE Several 11
Bilateral loan INR 10.50% 14,838
Bilateral loan MAD 5.45% 1,249 1,667
Bilaterals loans PEN Several 1,107
783,192 1,028,075
Current
Type Currency Interest rate 2009 2008
Bilateral loan EUR Euribor + 0,750% 112,409
EIB Loan EUR EIB Basic Rate 6,667 6,667
Bilateral loan EUR Several 7,616
Bilateral loan EUR Euribor + 0,950% 74,905
Bilateral loan EUR Euribor + 0,300% 93,333
Bilateral loan EUR Euribor + 0,300% 33,314
Bilateral loan EUR Euribor + 0,900% 99,843
Bilaterals loans EUR Euribor + [0,85% - 1,30%] 50,310
Bilaterals loans BRL Several 1,439 2,626
Bilateral loan CVE 8% 10 19
Bilateral loan MAD 5.45% 406
Bilaterals loans MAD Several
-
385
Bilaterals loans CNY 5,31% - 6,90% 11,355 3,138
Bilaterals loans HKD 1,95% - 2,29% 23,132
Bilaterals loans PEN Several 232
Commercial paper EUR Several 200 25,000
Overdrafts TRY 7,35% - 7,46% 49,499 30,283
Overdrafts MAD Several 6,025 3,533
Overdrafts MZM Several 355
Overdrafts ZAR Several 1,411 73
Overdrafts EUR Several 21 8,318
Overdrafts CVE Several 1,215 878
453,439 201,177
Year 2009 2008
2010 569,883
2011 930,982 839,304
2012 384,656 172,614
2013 138,478 138,478
2013 and following years 183,041 190,852
1,637,157 1,911,130

The non-current portion of loans at 31 December 2009 and 2008 is repayable as follows:

The loans at 31 December 2009 and 2008 are stated in the following currencies:

2009 2008
Currency Currency Euros Currency Euros
EUR 1,743,955 1,756,268
USD (a) 354,000 242,616 404,000 290,292
MZM 15,670 355
BRL 23,738 9,452 32,131 9,906
ZAR 15,046 1,411 952 73
MAD 87,158 7,680 62,936 5,586
CVE 135,071 1,225 100,109 908
TRY 106,655 49,499 65,074 30,283
INR 1,000,000 14,838
CNY 111,679 11,355 29,800 3,138
PEN 5,855 1,339
HKD 258,405 23,132
2,090,680 2,112,631

(a) Due to certain derivative financial instruments for hedging exchange rate (Note 39), these financings are not exposed to exchange-rate risk.

Rating

The larger bilateral loans (Euribor + spread) establish that the spread must be indexed to the Standard & Poor's rating, therefore reflecting the assessment of risk of these operations.

During 2009 as a result of the downgrade to BBB- in January, the bank loans negotiated under those conditions had their spreads increased. This information is reflected in the previous charts.

Control of the subsidiary companies

The majority of the loan operations of the operating and sub-holding companies do not establish the need for Cimpor -- Cimentos de Portugal, SGPS, S.A. to maintain majority control of the companies.

However the bank loans of more significant amounts, in particular those contracted by Cimpor Inversiones, contain an Ownership Clause.

The comfort letters requested from the holding company, for purposes of contracting these operations, usually contain a commitment for it not to sell its direct or indirect control of these companies. The company also provides support to the Euro Medium Term Note programmes established by the Group.

The comfort letters provided by the Parent company and other subsidiary companies at 31 December 2009 and 2008 totalled 222,429 and 140,700 thousand euros, respectively.

Financial covenants

In the larger financial operations the loan contracts also contain financial covenants for certain financial ratios to be maintained at previously agreed levels.

The financial ratios are:

  • Net debt / EBITDA, ao nível consolidado;
  • EBITDA / (Financial expenses Financial income), ao nível consolidado;
  • Quantitative limits on the indebtedness of operating companies ("Subordination ratios")

At 31 December 2009 and 2008 these ratios were within the commitments established.

Negative pledge

The majority of the financing instruments have Negative pledge clauses. The larger loans (those exceeding 50 million euros) normally establish a maximum level of pledges over assets, which must not be exceeded without prior notice to the financial institutions.

Cross default

Cross default clauses, which are current practice in loan contracts, are also present in the large majority of the referred financial instruments.

Change of control

Various financing instruments include change of control clauses that can even provide for the possibility of early repayment by decision of the creditors, if 51% of the capital is controlled by a single entity or several entities acting in consortium. At 31 December 2009, the debt attributable to financial instruments containing such a clause amounted to 1.1746 billion of euros, of which 866.5 thousand of euros are registered as non-current financial debt.

The penalties that the creditor can apply in the event of unremedied non-compliance or acceptance of these financial constraints within an agreed time period generally comprises the early repayment in full of the loan obtained or the cancellation of the credit lines available. At 31 December 2009 and 2008, the Group fully complied with all the above mentioned financial constraints.

38. Obligations under leases

Finance leases

The minimum lease payments as at 31 December 2009 and 2008, resulting from finance lease liabilities, are as follows:

2009 2008
Present value Future value Present value Future value
Up to 1 year 2,955 3,053 2,102 2,111
From 1 to 5 years 4,784 4,877 4,670 4,979

Operating leases

The Cimpor Group current operating lease contracts relate essentially to transport and office equipment.

Future commitments under the current operating lease contracts are as follows (minimum lease payments):

Future value
2009 2008
Up to 1 year 5,222 4,959
From 1 to 5 years 9,405 8,997
More than 5 years 156 10

Total operating lease costs recognised in the consolidated statement of profit and loss for the year ended 31 December 2009 amounted to 5,235 thousand euros (5,085 thousand euros in 2008).

39. Derivative financial instruments

Under the risk management policy of the Cimpor Group, a range of derivative financial instruments have been contracted at 31 December 2009 and 2008 to hedge interest and exchange rate risk.

The Group contracts such instruments after evaluating the risks to which its assets and liabilities are exposed and assessing which instruments available in the market are the most adequate to hedge the risks.

These operations are subject to prior approval by the Executive Committee and are permanently monitored by the Financial Operations Area. Several indicators relating to the instruments are periodically determined, namely their market value and sensitivity of the projected cash flows and market value to changes in key variables, with the aim of assessing their financial effect.

The recognition of financial instruments and their classification as hedging or trading instruments, is based on the provisions of IAS 39.

Hedge accounting is applicable to financial derivative instruments that are effective as regards the elimination of variations in the fair value or cash flows of the underlying assets/liabilities. The effectiveness of such operations is verified on a regular quarterly basis. Hedge accounting covers three types of operations:

  • Fair value hedging;
  • Cash flow hedging;
  • Hedging of net investments in foreign entities.

Fair value hedging instruments are financial derivative instruments that hedge exchange rate and/or interest rate risk. Changes in the fair value of such instruments are reflected in the statement of profit and loss. The underlying asset/liability is also valued at fair value as regards the part corresponding to the risk that is being hedged, the respective changes being reflected in the statement of profit and loss.

Cash flow hedging instruments are financial derivative instruments that hedge the exchange rate risk on future purchases and sales of certain assets as well as cash flows subject to interest rate risk. The effective part of the changes in fair value of the cash flow hedging instruments is recognised in shareholders' equity in the caption Reserves - Hedging operations, while the non effective part is reflected immediately in the statement of profit and loss.

Instruments hedging net investment in foreign entities are exchange rate financial derivative instruments that hedge the effect, on shareholders' equity, of the risks on translation of the financial statements of foreign entities. Changes in the fair value of these hedging operations are recorded in the shareholders' equity ''Currency translation adjustments'' until the hedged investment is sold or liquidated.

Instruments held for trading purposes are financial derivative instruments contracted in accordance with the Group's risk management policies but where hedge accounting is not applicable, because they were not formally designated for that purpose or because they are not effective hedging instruments in accordance with the requirements of IAS 39.

Fair value of derivative financial instruments

The fair value of derivative financial instruments at 31 December 2009 and 2008 was as follows:

Other assets (Note 24) Other liabilities (Note 42)
Current Non-current Current Non-current
2009 2008 2009 2008 2009 2008 2009 2008
Fair value hedges:
Exchange and interest rate swaps 3,771 11,326 2,183
Interest rate swaps 13,385 2,281 2,858 4,888
Exchange rate forwards 18 7 1 110
Cash flow hedges:
Interest rate swaps 2,365 4,092
Trading:
Exchange and interest rate derivatives 4,524 219 1,447 68,073 38,542
Interest rate derivatives 1,422 1,985 3,636 313 6,753 10,042 43,863 65,785
19,349 4,492 10,266 16,527 6,754 13,964 114,119 108,419

Some derivatives, although in compliance with the Group's risk management policies as regards the management of financial market volatility risks, do not qualify for hedge accounting, and so are classified as trading instruments.

The following schedule shows the operations at 31 December 2009 and 2008 that qualify as fair value and cash flow hedging instruments:

Fair value
Type of
hedge
Notional Type of
Operation
Maturity Financial purpose 2009 2008
Fair value EUR 15.627.500 Cross-Currency
Swap
Apr/13 Principal and interest hedge on
Intercompany Loan from C. Inversiones to
Natal Portland Cement
3,771 8,126
Fair value EUR 5.444.444 Cross-Currency
Swap
Apr/13 Principal and interest hedge on
Intercompany Loan from C. Inversiones to
Natal Portland Cement
(1,272) 1,877
Fair value EUR 3.888.888 Cross-Currency
Swap
Apr/13 Principal and interest hedge on
Intercompany Loan from C. Inversiones to
Natal Portland Cement
(911) 1,323
Fair value EUR 75.000.000 Interest Rate
Swap
May/11 Hedge of 12.5% of the interests on
Intercompany Loan from C. Inversiones to
Cimpor BV regarding the Eurobond
payment
3,834 1,226
Fair value EUR 75.000.000 Interest Rate
Swap
May/11 Hedge of 12.5% of the interests on
Intercompany Loan from C. Inversiones to
Cimpor BV regarding the Eurobond
payment
4,030 2,057
Fair value EUR 50.000.000 Interest Rate
Swap
May/11 Hedge of 8.33% of the interests on
Intercompany Loan from C. Inversiones to
Cimpor BV regarding the Eurobond
payment
2,767 1,128
Fair value EUR 50.000.000 Interest Rate
Swap
May/11 Hedge of 8.33% of the interests on
Intercompany Loan from C. Inversiones to
Cimpor BV regarding the Eurobond
payment
2,758 1,355
Fair value EUR 50.000.000 Interest Rate
Swap
May/11 Hedge of 8.33% of the interests on
Intercompany Loan from C. Inversiones to
Cimpor BV regarding the Eurobond
payment
2,854 1,403
Cash-flow BRL 388.586.800 Interest Rate
Swap
Dec/11 Hedge of 100% of the Interests on the note
of Austria Republic on Cimpor Cimentos
Brasil
(6,455)
Fair value USD 1.700.000 Forwards Jan/10 Currency hedge 16
Fair value USD 1.400.000 Forwards Feb/10 Currency hedge 2
Fair value USD 500.000 Forwards Jan/10 Currency hedge (1)
Fair value USD 2.220.000 Forwards Jan/09 Currency hedge (103)
17,849 11,935

In addition, the portfolio of derivative financial instruments at 31 December 2009 and 2008 that do not qualify as hedging instruments is made up as follows:

Fair value
Face Value Type of Operation Maturity Economic purpose 2009 2008
USD 150.000.000 Cross-Currency Swap Jun/13 Hedge of 100% of the principal and interests
10Y tranche of the US Private Placements
(19,869) (13,158)
USD 254.000.000 Cross-Currency Swap Jun/15 Hedge of 100% of the principal and interests
12Y tranche of the US Private Placements
(43,679) (26,612)
EUR 100.000.000 IRS with conditioned
receivable Leg
Dec/12 Reduce the cost of funding - IRS with options
sold on Euribor 6M and US Libor 6M
(6,664) (11,485)
EUR 30.000.000 IRS with conditioned
receivable and payable Leg
Jun/15 Reduce the cost of funding - IRS with options
sold on European swap curve and options
bought on the slope of the European Swap
Rate.
2,077 442
EUR 280.000.000 Basis Swap EUR May/09 Hedge Interests Club Deal 280M (2,881)
EUR 200.000.000 Basis Swap EUR Aug/09 Hedge Interests Club Deal 200M (4,746)
EUR 50.000.000 IRS with only conditioned
receivable Leg
Dec/09 Reduce the cost of funding - IRS with options
sold on US Libor 6M
(6)
EUR 216.723.549 IRS with conditioned
receivable Leg
Jun/15 Reduce the cost of funding - IRS with a set of
EUR 300.000.000 IRS with only conditioned
Payable Leg
Jun/15 options sold on which the main exposure is
the slope of the European swap curve.
(38,400) (54,891)
EUR 150.000.000 EUR Interest Rate Swap Jun/15 Reduce the cost of funding - Interest Rate
Swap
(752)
EUR 50.000.000 EUR Structured Swap Rate Mar/11 Reduce the cost of funding - Structured
Interest Rate Swap
(1,180)
EUR 50.000.000 IRS with conditioned
receivable Leg
Jun/15 Reduce the cost of funding - IRS with options
sold on an Interest Rate Index
1,461
EUR 25.000.000 IRS with conditioned
receivable Leg
Jun/15 Reduce the cost of funding - IRS with options
sold on an Interest Rate Index
(2,100)
Set of symmetrical
Swaps
Set of Interest Rate Swaps Dec/09 Swaps already closed or tottaly hedged. The
Group doesn't have anymore any economic
risk in these positions.
36
(109,107) (113,299)

40. Financial risk management

General principles

During its normal business activities, CIMPOR Group is exposed to a variety of financial risks likely to alter its net worth, which can be grouped, according to their nature, in the following categories:

  • Interest rate risk
  • Exchange rate risk
  • Liquidity risk
  • Credit risk
  • Counterparty risk

Risk is deemed to mean the probability of obtaining a positive or negative outcome different to that expected, and which materially and unexpectedly alters the Group's net worth.

The management of the above-stated risks, which primarily arise from the unpredictability of financial markets, requires the prudent application of a set of rules and methods approved by the Executive Committee, with the end purpose of minimising their potential negative impact on the Group performance.

All risk management, focused on that objective, is conducted according to two core concerns:

  • Reducing, whenever possible, fluctuations in profit/loss and cash flows that are exposed to risk;
  • Curbing deviation from forecast financials by means of meticulous financial planning based on multi-year budgets.

Furthermore, another concern of the Group is that the processes for managing these risks meet internal information needs and also external requirements (regulators, auditors, financial markets and all other stakeholders).

The Group, as a rule, does not take speculative positions and so the sole aim of all operations carried out with the purpose of managing financial risks is to control existing risks to which the Group is unavoidably exposed.

Hedging the interest-rate risk and exchange-rate risk normally means contracting financial derivatives on the over-thecounter market (for reasons of flexibility), involving a limited number of counterparties with high ratings. All these operations are undertaken with financial entities with which ISDA contracts have been concluded beforehand, in accordance with international standards.

The Financial Operations Department of the holding's Corporate Centre is responsible for managing financial risks, including identifying, assessing and hedging such risks. This risk management is conducted under the guidance of the Executive Committee, in particular of the director responsible for the financial risk area (whose approval is required prior to any operation).

In the last quarter of 2009, the Group started, with the collaboration of an international bank with recognised expertise in the field, the development of an integrated model of risk management that will be an important management tool for the Group. Aware that such a model requires regular updating and monitoring, we believe that it will soon be available for use and its results will be an important support for analysis and decisions regarding the management of the abovementioned financial risks.

Interest rate risk

The Group's exposure to interest-rate risk arises from the fact that its balance sheet includes financial assets and liabilities that may have been contracted at fixed interest rates or at variable interest rates. In the former case, the Group runs the risk of variation in the fair value of those assets and liabilities, whereby any change in market rates involves a (positive or negative) opportunity cost. In the latter case, such change has a direct impact on the amount of interest paid/received, resulting in cash account changes.

Interest-rate swaps are normally contracted to hedge this type of risk, in accordance with the Group's expectations concerning the development of market rates.

In 2009, with the exception of the longest term (30 years), the interest rate market continued the sharp downward trend of rates that had occurred in 2008.

December
2008
December
2009
Interest rate Euro Swap 2Y 2.69% 1.87%
Interest rate Euro Swap 5Y 3.24% 2.81%
Interest rate Euro Swap 10Y 3.74% 3.58%
Interest rate Euro Swap 30Y 3.54% 3.94%

Interest rates in the Euro zone

(Source: Bloomberg)

Development of money market rates in the Euro zone

December
2008
December
2009
Euribor 12M 3.05% 1.25%
Euribor 6M 2.97% 0.99%
Euribor 3M 2.89% 0.70%
Euribor 1M 2.60% 0.45%

(Source: Bloomberg)

This aggressive move to lower rates was highly visible in the money market, where rates on the interbank market (with the exception of 12 months) ended the year, oddly enough, below the European Central Bank rates.

The debt of the Group maintained the profile it had in 2008, with about 85% tied to variable rates. Only half of the Eurobond (300M Euros) is fixed rate, while all other instruments were originally issued at a variable rate or were later converted through interest rate swaps.

The option to keep the bank loans at variable rates, relates to the fact that its short lived maturity would not allow the Group to recover the difference on the negative rates initially paid due to the steep slope that the yield curve presents, particularly in the shorter term.

Given current market conditions, a better balance between floating rate and fixed rate will be achieved when the Group makes a market operation. As soon as conditions permit such, the Group will refinance a substantial part of its debt from short to medium term and that new debt will mostly be issued at a fixed rate.

Distribution of the Group's debt by type of interest rate

December December
2009 2008
Variable rate 86% 84%
Fixed rate 14% 16%

Like last year, and taking advantage of the downward trend in money market rates, the Group continued to focus on bank loans linked to shorter term rates (3 months and 1 month).

Exchange rate risk

The Group's internationalisation means that it is exposed to the exchange-rate risk for the currencies of different countries, particularly those that follow, due to the large amounts of capital invested there: Brazil, Egypt, South Africa and Turkey. Note 6 presents the variation of exchange rates of the major currencies of the Group between 31 December 2009 and 31 December 2008.

The exchange effects of the translation of local financial statements in the Group's consolidated financial statements can be mitigated by hedging the net investments made in those countries. However, the Group has only done this sporadically, since it considers the cost of such operations (the difference between the local interest rates and the Group's reference currency) to generally be too high in view of the risks involved.

When the exchange-rate risk is hedged, forward contracts and standard exchange options, generally maturing in less than one year, are normally used.

The Group does not carry out exchange-rate operations that do not adequately cover existing or contracted positions.

In 2009, the decision not to hedge currency risks ultimately had a positive impact, since two currencies of the four largest foreign exchange exposures of the Group appreciated strongly (the Brazilian Real and the South African Rand), and the currencies of Egypt, Turkey and Morocco only underwent marginal declines. This combination of movements had a positive effect on consolidated EBITDA and the net value of the different investments made.

In relation to intra-group loans between businesses operating in different currencies, these hedges should be carried out whenever market conditions warrant such, to hedge the foreign exchange risk (usually from companies borrowing funds). This is true for Cross Currency Swaps contracted with local banks by the South Africa business area, which fuse the original instruments (in euros) with another that is index linked to the South African currency.

The Group, with the exception of debt directly contracted by the different Business Areas to meet their day-to-day requirements, has favoured financing in the consolidation currency. Whenever financing is contracted in a currency other than the euro, it is hedged via cross currency swaps so that no exchange risk is taken on (unless this originates a situation of equilibrium with assets denominated in that other currency).

In the particular case of the US Private Placements issued in 2003, when the Group decided to use the US market to diversify its sources of financing and to benefit from the better conditions offered by that market at that time, two cross currency swaps were contracted, which converted the loans contracted in USD to loans in EUR. Both the loans contracted and the derivatives contracted are carried at their fair value, and they have a direct impact on the profit and loss account.

The main debt instruments as at 31 December 2009 and 31 December 2008, not considering the abovementioned cross currency swaps, were denominated in the following currencies:

December
2009
December
2008
EUR 82% 83%
USD 16% 14%
Other 2% 3%

Considering that impact, around 98% of the loans at both dates were in euros.

Liquidity risk

Liquidity risk management means maintaining an appropriate level of cash resources and contracting credit limits that not only ensure the normal pursuit of the Group's activities but also meet the needs of any extraordinary operations.

In particular, the Group maintains committed backup lines with some banks, which can be used to meet occasional cash needs, thereby reducing the liquidity risk and also satisfying the ratios required by the rating agencies.

In 2009, and to meet these concerns, the Group substantially increased the underwritten backup lines.

As at 31 December 2009 and 31 December 2008, credit lines obtained but not used, excluding commercial paper that has not been underwritten, rose to close to 779 million euros and 498 million euros, respectively.

This risk is monitored through a cash budget, which is reviewed at regular intervals. The Group's access to short-term lines of credit of ample value and the fact that it keeps its MTN and commercial paper programmes up to date, ensure that it is equipped to act swiftly in the capital markets.

In the last quarter, the Group established a new EMTN program for EUR 2.5 billion, which will diversify funding sources and provide swift access to the European capital markets.

The cash surpluses of the different Business Areas are, whenever possible, channelled to the parent company through the payment of dividends or made available to other areas with a shortage of funds, through intercompany loans.

Credit risk

The markets view of CIMPOR's credit risk in regards to financing operations is naturally reflected in the financial costs associated to such operations. The Group's influence in such matters is merely ancillary, embodying the prudent and balanced management of the business in order to lessen the probability of defaulting on its obligations.

Following the sharp decline in credit spreads in 2008, the trend in 2009 reversed, with the spreads shrinking though they still remain distant from the pre-crisis levels.

December
2008
March
June
2009
2009
September
2009
December
2009
JP Morgan Maggie AAA 34 70 37 17 27
JP Morgan Maggie AA 138 133 86 58 62
JP Morgan Maggie A 209 249 151 107 102
JP Morgan Maggie BBB 374 364 247 178 150

Growth of Credit Spreads by Level of Risk (JP Morgan Maggie index)

(Source: Bloomberg)

The Group's high degree of solvency is reflected in its Leverage ratio (Net Debt / EBITDA) and Interest Coverage ratio (EBITDA / Net Financial Charges). The achievement of the levels pre-established for these two indicators is fundamental in ensuring compliance not only with the two debt instruments envisaging such but also, through the performance of the cross default provisions, compliance by all the remaining debt.

In 2009 and 2008, both ratios - calculated according to the methodology imposed by the U.S. Private Placements funding contract (financial debt at nominal value) were far from the established limits at the end of the year:

Ratio December
2009
December
2008
Limit
Leverage Net Debt / Ebitda 2.82 2.97 < = 4 (*)
Interest Coverage Ebitda / Net Finance Charges 11.26 6.89 > 5

(*) Untill December 2010; 3.5 after that.

Counterparty risk

When the CIMPOR Group establishes different contractual relations with third parties, it takes on the risk of the probability of non-fulfilment or even, in an extreme scenario, default by a counterparty.

The Group endeavours to limit its exposure to this risk, when making bank deposits and other cash investments and also when contracting derivative instruments, by carefully selecting the counterparties, based on their rating and taking into account the nature, maturity and scope of the operations.

No losses due to non-fulfilment by counterparties are expected, based on the information currently to hand, and despite the decline in rating of the different counterparties with which the Group maintains relations.

The Group's policy in regard to the management of its derivatives portfolio is to diversify counterparties, though it must be acknowledged that in relation to its portfolio of interest-rate derivatives that do not qualify as hedges, there exists a single counterparty holding a dominant position, so as to facilitate operations. In any case, as this portfolio consists mainly of swaps with sold options, it is the referred institution and not the Group that actually runs the counterparty risk.

The five swaps in the component of our interest-rate derivatives portfolio classified as hedge accounting have four different counterparties, following the Group's concern with not increasing commercial involvement with that institution.

The live operations of the exchange-rate swaps portfolio are divided between two different counterparties: the exchangerisk hedge swaps for the financing obtained from the US market are contracted with the bank that led the operation; whereas the cross currency swaps hedging the financial risk of loans granted to NPC (South Africa) by Cimpor Inversiones were negotiated with a local bank.

Sensitivity analyses

a) Interest rate

Exposure to interest-rate risk results in the variability of the Group's net financial expenses.

The results of a sensitivity analysis of exposure as at 31 December 2009 and 2008 were as follows: a parallel shift of +/- 1% in the interest rate curve, with all other assumptions remaining constant, would represent a 18 million euros and 17 million euros increase / decrease in financial expenses (before tax), for the financial years ended on 31 December 2009 and 2008 respectively.

The fact that the Group has not substantially changed its debt profile in terms of balance between floating rate and fixed rate means the result of the sensitivity analysis remains practically unchanged.

The portfolio of derivatives not qualifying as hedges undergoes a further sensitivity analysis, intended to determine an indicator known as Earnings-at-Risk: a statistical measure that indicates, to a probability of 95% and for a three-month time horizon, the maximum loss that the portfolio can generate on earnings.

The assumptions used in the analysis are:

  • Time horizon: 3 months
  • Simulation method: Monte Carlo (one thousand scenarios)
  • Forward rates for the entire timeframe of the interest rate curve
  • Volatility and constant correlation, based on the monthly history of values of the previous ten years
  • 95% confidence interval.

This indicator, which provides an ongoing analysis of the portfolio's risk and also assesses the extent to which these risks may be lessened by contracting certain operations, produced the following results as at 31 December 2009 and 31 December 2008:

(Amounts in EUR) 2009
Earnings at Risk
(in mmEUR)
2008
Earnings at Risk
(in mmEUR)
EaR not considering diversification 13.9 26.2
Benefits of the diversification 8.2 5.3
Earnings-at-Risk 5.7 20.9

The sharp decline of Earnings-at-Risk in 2009 essentially reflects the sharp decrease of the money market rates (the Euribor 6M, for example, fell from 3% in December 2008 to 1% in December 2009) and increased gains from diversification as a result of some added exposure of the portfolio to indexes not correlated with the other positions.

b) Exchange rates

In the debt and financial derivatives component, the exchange rate risks are substantially hedged by symmetrical positions and so the potential profits variability is low. The same is true for the exchange risk exposure in other financial instruments, arising from the Group's normal business activity.

As at 31 December 2009, the exposure of profits to exchange rate fluctuations mainly derives from intragroup loans between business areas operating with different currencies. A 10% change in the euro exchange rate with the currencies where such exposure is most significant, would impact on profits as follows:

+10% ‐10%
EGP
TRY
CNY
9,195
(6,667)
(4,429)
(7,523)
5,455
3,624
(1,900) 1,555

41. Accounts payable - other

Accounts payable -- other at 31 December 2009 and 2008 were made up as follows:

2009 2008
Current Non-current Current Non-current
Participated and participant companies 67 1,100 12 500
Other shareholders 1,517 417 1,866 787
Suppliers of fixed assets 33,273 25,780 28,533 18,228
Other creditors 26,194 740 28,575
61,051 28,037 58,986 19,515

''Other creditors'' include amounts payable to several entities on transactions not related to the Group's core operations.

42. Other current and non-current liabilities

These captions at 31 December 2009 and 2008 were made up as follows:

2009 2008
Current
Non-current
Current Non-current
Accrued interest 17,177 18,573
Accrued payroll 21,566 19,856
Derivative financial instruments (Note 39) 6,754 114,119 13,964 108,419
Investment subsidies 7,709 6,746
Other accrued costs and deferred income 15,079 589 10,932 28
60,576 122,418 63,325 115,193

43. Accounts payable - trade

The caption ''Accounts payable - trade'' at 31 December 2009 and 2008 was made up as follows:

2009 2008
Trade payables 114,505 147,036
Suppliers - invoices for approval 14,079 13,535
Notes payable - trade 40,602 30,352
Advances from clients 13,549 16,264
182,734 207,187

44. CO2 emission licences

In transposing European Parliament and Council Directive 2003/87/CE to internal legal orders, lists of the installations of participants in the trading of emissions and the respective emission licences granted for the 2005 to 2007 period and 2008 to 2012 have been approved by the Portuguese and Spanish governments.

Eight manufacturing plants of Group companies, four in Portugal (Cabo Mondego, Alhandra, Loulé and Souselas Production Centres) and four in Spain (Oural, Toral de los Vados, Córdoba and Niebla Production Centres) received licences corresponding to emissions rights of 4,015,279 tons and 1,773,890 tons of CO2, per annum (2005 to 2007) and 4,053,897 tons and 2,025,769 tons of CO2 (2008 to 2012), respectively.

The estimated emissions of these premises were 4,472,547 tons of CO2 during the financial year ended 31 December 2009. 850,000 tons (360,000 in 2008) of the total licence of 6,079,666 tons of CO2 awarded were disposed of, generating a gain of 10,723 thousand euros (8,188 thousand euros in 2008), reported under ''Other operating income'' (Note 8). Notwithstanding, the Group held emission licences that exceeded the referred to estimates by a reasonable margin.

Furthermore, the Group exchanged 565,423 European Emission Allowances (''EUA'') licences for Certified Emission Reductions (''CER'') in the financial year ended on 31 December 2009 (565.423 in 2008), resulting in a gain of 3,308 thousand euros (3,279 thousand euros in 2008) (Note 8).

45. Financial assets and liabilities according to IAS39

The accounting policies in accordance with IAS 39 to financial instruments were applied to following items:

Assets and
2009 Loans granted and
accounts
receivable
Available-for-sale
financial
assets
Held to
maturity
investments
Other
financial
liabilities
liabilities
at fair value
through
profit and loss
Total
Assets:
Cash and cash equivalents 439,182 439,182
Accounts receivable-trade 264,202 264,202
Other investments 5,649 224 4,066 9,939
Other non-current accounts receivable 11,871 11,871
Other current accounts receivable 28,855 28,855
Other non-current assets 24,780 7,408 32,188
Other current assets 17,787 5,964 23,751
Current accrued income 2,161 2,161
Total assets 788,839 5,649 224 17,438 812,149
Liabilities:
Non-current loans 1,394,541 242,616 1,637,157
Current loans 453,523 453,523
Current liabilities-trade 182,734 182,734
Other non-current accounts payable 28,037 28,037
Other current accounts payable 61,051 61,051
Other non-current liabilities 8,299 114,119 122,418
Other current liabilities 2,663 6,754 9,417
Current acrrued costs 51,159 51,159
Total liabilities 2,182,007 363,489 2,545,496
Assets and
Loans granted and Available-for-sale Held to Other liabilities
at fair value
accounts financial maturity financial through
2008 receivable assets investments liabilities profit and loss Total
Assets:
Cash and cash equivalents 169,564 169,564
Accounts receivable-trade 313,443 313,443
Other investments 8,565 119,801 3,029 131,395
Other non-current accounts receivable 10,883 10,883
Other current accounts receivable 29,633 29,633
Other non-current assets 22,235 11,639 33,874
Other current assets 6,644 2,211 8,855
Current accrued income 1,897 1,897
Total assets 554,298 8,565 119,801 16,879 699,543
Liabilities:
Non-current loans 1,636,182 274,948 1,911,130
Current loans 201,501 201,501
Current liabilities-trade 207,187 207,187
Other non-current accounts payable 19,515 19,515
Other current accounts payable 58,986 58,986
Other non-current liabilities 6,774 108,419 115,193
Other current liabilities 1,821 13,964 15,785
Current accrued costs 47,539 47,539
Total liabilities 2,179,505 397,331 2,576,836

46. Notes to the consolidated cash flow statements

Cash and cash equivalents

Cash and cash equivalents at 31 December 2009 and 2008 were made up as follows:

2009 2008
Cash 320 285
Bank deposits 268,961 136,431
Marketable securities 169,901 32,848
439,182 169,564
Bank overdrafts (Note 37) (58,525) (43,085)
380,657 126,479

The caption ''Cash and cash equivalents'' comprises cash, deposits repayable on demand, treasury applications, government bonds, deposit certificates and term deposits maturing in less than three months with insignificant risk of change in value. Bank overdrafts include amounts drawn from current accounts with financial institutions.

Receipts / Payments relating to loans

The most significant flows during the year ended 31 December 2009 relate primarily to:

  • Corporación Noroeste borrowing around EUR 186 million euros and Cimpor Inversiones EUR 75 million (amortised in 2009), for the amortisation of the debt, intra-group loans and dividend payments;
  • The issue and reimbursement of commercial paper by Cimpor Indústria, amounting to EUR 20 million and EUR 52 million, respectively;
  • The use of current accounts by Corporación Noroeste (which resulted in net terms to the amortisation of EUR 44 million);
  • The early repayment of the Private Placements in the amount of EUR 34 million;
  • The use of short term debt by Cimpor China (funding of approximately EUR 31 million, in net terms);
  • The amortisation of the medium-long term loan contracted locally in India (EUR 15 million);

Receipts / Payments relating to financial investments

Receipts relating to investments correspond, essentially, to the sale of the debt instrument issued by the Republic of Austria (Note 20).

Payments related to financial investments, occurred in the year ended 31 December 2009, corresponds essentially to the minority investment acquisition in the share capital of participated companies and to the increase of investment in associates.

47. Related parties

Transactions and balances between Group companies consolidated by the full consolidation method or by the proportional consolidation method were eliminated in the consolidation process and so are not disclosed in this note.

The terms and conditions of the transactions between the Group companies and related parties are substantially similar to those contracted, accepted and practiced in similar operations with independent entities.

Balances and transactions between the Group and associated companies and other related parties are detailed below.

Other related parties
Associated companies Teixeira Duarte,
SGPS, S.A. and
related
Lafarge, S.A. and
related
Manuel Fino,
SGPS, S.A.
and related
Other
2009 2008 2009 2008 2009 2008 2008 2009 2008
Assets:
Accounts receivable-trade 3 3,407 5,211 6,315 2,282 3,997 1,364
Accounts receivable-other 20,688 20,156 9 9
20,691 23,563 5,220 6,324 2,282 3,997 1,364
Liabilities:
Accounts payable-trade 976 807 3 408 591
Suppliers of fixed assets 30 10 30 30 18,920 16,059 113
1,006 817 33 30 19,328 16,650 113
Transactions:
Supply of fixed assets 22 10 460 697 82 366
External supplies and services 2,638 3,670 18 40 1,218 1,268
Inventories purchases 956 1,622 1,226 2,186
Sales and services rendered 19 8,299 14,559 11,376 26,856 37,884 1,975
3,634 13,602 15,038 12,113 29,382 41,704 1,975

The caption ''External supplies and services'' include the costs with the Contract of Industrial and Technical Cooperation signed with Lafarge S.A..

Operations between related parties also include acquisitions of equity investments, namely:

• In the year ended 31 December 2009, the acquisition from an associate of 10% of the share capital of Firmes y Hormigones Sany, SL (where 80% was already owned), the acquisition of 25% of the share capital of Occidental de Áridos, SL, making this company wholly owned by the Group, and a 55% stake in the capital of Betobomba, S.L. (Note 5), in the overall amount of 9 million euros;

• In the year ended 31 December 2008, the acquisitions of share capital and other assets in Portugal and Spain from associated companies (C+PA e Arenor) totalling around 62 millions of euros.

Benefits of the members of the Company's corporate boards and executive seniors

Benefits of the members of the Company's corporate boards and senior executive in the years ended 31 December 2009 and 2008 were as follows:

2009 2008
Fixed Variable Fixed Variable
Board of directors:
Executive directors 1,553 2,685 1,374 2,989
Non-executive directors 751 581
2,304 2,685 1,955 2,989
Senior executives 5,700 1,428 5,529 1,428
8,004 4,113 7,484 4,418
Short-term benefits 7,742 2,599 7,233 3,143
Post employment benefits 262 252
Share based payments 1,514 1,274
8,004 4,113 7,484 4,418

48. Contingent liabilities, guarantees and commitments

Contingent liabilities

In the normal course of its business the Group is involved in several legal processes and complaints relating to its products and services as well as of an environmental nature, labour processes and regulatory. Considering the nature of the legal processes and the provisions made up, the expected outcome is not expected to have a significant impact on the Group's operations, financial position or results of operations.

At 31 December 2009 and 2008, the Group has reported provisions for taxes of EUR 65.248 million and EUR 59.842 million, respectively, intended to cover tax-related contingencies (Note 36). Furthermore, there are several tax cases in Group companies which are classified as not a probable loss. In this context tax inspections of 2002 to 2004 of Group companies in Spain are included, which resulted in additional tax payments (including accrued interest) totalling approximately 35 million euros. The adjustments in question relate primarily to financial profit/loss, resulting mainly from interpretations not appropriate to the nature of certain transactions, and it is the belief of the Board of Directors that the conclusion of court proceedings already underway to challenge those adjustments, will not result in relevant costs to the Group. This conviction is backed up by the opinion of its legal and tax advisers, who mostly gauge the possibility of losing such court cases as being remote.

Guarantees

At 31 December 2009 and 2008 the Group companies had guarantees totalling 82,443 thousand euros and 126,604 thousand euros, respectively, given to third parties. Of these, 18,425 thousand euros (28,409 thousand euros in 2008) correspond to guarantees given to the tax authorities to cover additional tax assessments for the years 1996 to 2007, the liability being provided for under the caption Provisions for tax risks (Note 36).

At 31 December 2009 and 2008 the companies included in the consolidation perimeter had the following bank guarantees given to third parties:

2009 2008
Guarantees given:
For tax processes in progress 18,425 28,409
Bank union 40,087 47,317
To suppliers 7,848 30,820
Other 16,083 20,058
82,443 126,604

Additionally, one of the contract loans, in China business area, is guaranteed by a constitution of a mortgage for fixed assets, by the amount of 5,379 thousand euros (5,457 thousand euros in 2008). In the Portugal business area, due to legislation on the legal responsibilities for environmental damage, in fulfilment of the requirement to establish mandatory financial guarantee from 1 January 2010, reserves were provisionally established or assets of the Group companies assigned in a total of approximately 8 million euros,

Other commitments

In the normal course of its business the Group assumes commitments related essentially to the acquisition of equipment, under its investment operations in progress and for the purchase and sale of investments, associated companies and subsidiaries.

Until 2009, the sales of the 26% of the share capital of S. C. Stone and Sterkspruit Aggregates (Note 4), in accordance with South Africa legislation regarding Black Economic Empowerment (BEE), were not recognised because the significant risks and benefits relating to those investments were not been transferred to the buyer. In accordance with the terms agreed there are no losses to be recognised as a result of the transactions.

Pursuant to the contractually established terms and conditions, the minority shareholder of Shandong Liuyuan New-type Cement Development Co., Ltd is provided the opportunity to its their shareholding in that company to a maximum of 40%, until 15 October 2012. The Board of Directors does not estimate any materially relevant impact on the financial statements of the Company in the event that such option is taken up.

Also of note are commitments related to contracts for the acquisition of tangible fixed assets and stocks as well as for the operation of facilities located on the property of third parties, as follows:

2009 2008
Business area:
Spain 16,668 15,822
Portugal 14,025 20,981
Egypt 11,507 12,513
Other 7,320 5,404
49,519 54,721

In accordance with the Commercial Company Code ("Código das Sociedades Comerciais"), the parent company Cimpor – Cimentos de Portugal, SGPS, S.A. is jointly responsible for the obligations of its subsidiaries.

49. Auditors fees and services

In the years ended 31 December 2009 and 2008, the fees and services provided by our auditors were as follow:

Value %
2009 2008 2009 2008
Cimpor Holding:
Legal certification of accounts 72 85 5% 6%
Other assurance services 25 2% 0%
97 85 6% 6%
Subsidiaries:
Legal certification of accounts 1,222 1,237 80% 86%
Other assurance services 72 43 5% 3%
Tax consultancy services 120 48 8% 3%
Other 12 29 1% 2%
1,425 1,357 94% 94%
1,522 1,442 100% 100%

50. Subsequent events

The following significant events took place after the end of the 2009 financial year:

• The revision of the takeover bid by the Brazilian company Companhia Siderúrgica Nacional (CSN) for all the shares representing the share capital of CIMPOR, with an increase of the price offered (from 5.75 euros to 6.18 euros per share) and change to the success condition of the operation (from 50% of the capital plus one share to one-third of the capital plus one share).

  • The holding of a Special Session of the Regulated Market on 23 February to determine the outcome of this operation it was found to have been unsuccessful.
  • Signing with the Economic Defence Board (CADE) of Brazil, and at its request, of an "Agreement to Preserve Operation Reversibility'' (APRO), under which CIMPOR commits to maintaining the status quo of its operations in that country until a final decision by CADE on "Business Concentration Acts" relative to the agreements concluded by Votorantim Cimentos S.A. and Camargo Corrêa S.A. which resulted in the current shareholder structure of CIMPOR.
  • Founding of the Bencapor -- Produção de Inertes, S.A. company (Portugal), 50% owned by the CIMPOR Group.
  • Reduction of the nominal value of the shares representing the share capital of Asment de Témara from MAD 500 to MAD 50 and the subsequent share capital increase from MAD 171,875 to MAD 412.5 million by incorporation of reserves, through the issue of 4,812,500 new shares.
  • Reduction of the share capital of Société Les Ciments de Jbel Oust (Tunisia) from TND 84,299,500 to TND 71,753,600 through the amortization of 125,459 shares held by Cimpor Inversiones, S.A..
  • Amreyah Cement Company, S.A.E. (Egypt) obtains a licence to burn alternative fuels.
  • The shares representing the share capital of Amreyah Cement Company, S.A.E. are delisted for not complying with free float minimum level.
  • A new semi-mobile concrete plant is installed in Ankara (Turkey).
  • The Quality Management System of the Matola plant (Mozambique) obtains certification according to the ISO 9001:2008 standard.
  • The contract to install a new cement grinding unit at the Matola plant is signed.
  • Start up of the new Shanting plant (China) with a cement production capacity, with own clinker, of 2.4 million tons/year.

51. Financial statements approval

CIMPOR -- Cimentos de Portugal, SGPS, S.A. (CIMPOR), reported on 23 October 2009 that its then member of the Board of Directors Mr. Pedro Maria Calaínho Teixeira Duarte, having approved the 2009 Interim Consolidated Financial Information at the August 26 CIMPOR Board of Directors meeting during which it was unanimously approved, as published on the same date, has expressed a reservation regarding the text of the Interim Management Report because of disagreeing with the wording of the paragraph quoted below, included in the section ''Subsequent events'':

''On April 28 CIMPOR signed with Teixeira Duarte -- Engenharia e Construções, S.A. a memorandum of understanding for the termination of the joint participation held in the company C+PA -- Cimento e Produtos Associados, S.A..

On June 29 the 3 months deadline foreseen in the agreement above expired without the execution of the necessary contractual binding instruments.

CIMPOR's proposal to defer the previously mentioned deadline for 3 months was not accepted by Teixeira Duarte -- Engenharia e Construções, S.A. who, on its side, considered the agreement terminated''.

Mr. Pedro Maria Calaínho Teixeira Duarte, has subsequently returned the Interim Management Report to this company without his signature.

These financial statements for the year ended 31 December 2009 were approved by the Board of Directors on 7 April 2010. However, they are still subject to approval by the Shareholders' General Meeting in accordance with commercial legislation in force in Portugal, set to 29 April 2010.

52. Note added for translation

These consolidated financial statements are a translation of financial statements originally issued in Portuguese. In the event of discrepancies the Portuguese language version prevails.

QUALIFYING SHAREHOLDINGS

Qualifying Shareholdings (1)

Shareholders Nº of Shares Share
Capital % (2)
Teixeira Duarte, SGPS, S.A.(3) 153.096.575 22,78%
Through members of its board of directors and audit committee 251.000 0,04%
Through TDG, SGPS, S.A., which it controls 152.845.575 22,74%
Through members of its board of directors and audit committee 44.195 0,01%
Through Teixeira Duarte, S.A., which it controls 152.801.380 22,74%
Through members of its board of directors and audit committee, directly and undirectly 3.827.150 0,57%
Through Teixeira Duarte - Engenharia e Construções, S.A., which it controls 148.974.230 22,17%
Through Teixeira Duarte - Sociedade Gestão de Participações e Investimentos Imobiliários, S.A., which it fully controls 148.974.230 22,17%
Through Tedal, SGPS, S.A., which it fully controls 67.205.000 10,00%
Through TDCIM, SGPS, S.A., which it fully controls 81.769.230 12,17%
Manuel Fino, SGPS, S.A. 71.735.460 10,67%
Through Limar, Limited and Jevon, Limited, which it fully controls 71.735.460 10,67%
Through Investifino – Investimentos e Participações, SGPS, S.A. (4), controled by Limar, Limited and participated by Jevon, Limited 71.735.460 10,67%
On its own account 71.734.000 10,67%
Through members of its board of directors and audit committee 1.460 0,00%
Lafarge, S.A. 116.089.705 17,28%
Through Société Financiére Immobiliére et Mobiliére, SAS (Sofimo), which it controls 116.089.705 17,28%
Through Lafarge Cementos, S.A., which it controls 81.407.705 12,11%
Through Ladelis, SGPS, Lda., which it controls 81.407.705 12,11%
Through Financiére Lafarge, SAS, which it controls 34.682.000 5,16%
Banco Comercial Português, S.A. (BCP) and BCP Pension Fund 67.474.186 10,04%
Banco Comercial Português, S.A. and entities related to it (5) 274.186 0,04%
Banco Comercial Português, S.A. 500 0,00%
Banco Millennium BCP Investimento, S.A. 261.586 0,04%
Fundação Banco Comercial Português 12.100 0,00%
Fundo de Pensões do Banco Comercial Português, S.A. 67.200.000 10,00%
Caixa Geral de Depósitos, S.A. (CGD) and CGD Pension Fund 64.669.794 9,62%
Caixa Geral de Depósitos, S.A. 64.577.887 9,61%
On its own account 64.454.585 9,59%
Through Caixa Seguros e Saúde, SGPS, S.A., which it fully owns 34.649 0,01%
Through Fidelidade Mundial, S.A., which it fully owns 32.753 0,00%
Through Império Bonança – Companhia de Seguros, S.A., which it fully owns 1.896 0,00%
Through Parcaixa, SGPS, S.A., which it controls 88.653 0,01%
Fundo de Pensões da Caixa Geral de Depósitos, S.A. 91.907 0,01%
Bipadosa, S.A. 43.401.650 6,46%
Through Metalúrgica Galaica, S.A., which it fully owns 43.401.650 6,46%
Through Atlansider, SGPS, S.A., 50% owned by LAF 98, S.L., which it fully owns 43.401.650 6,46%
On its own account 43.400.520 6,46%
Through members of its board of directors and audit committee 1.130 0,00%
Through Atlansider, SGPS, S.A., of which it owns 50% (6) 43.401.650 6,46%
On its own account 43.400.520 6,46%
Through members of its board of directors and audit committee 1.130 0,00%
Mr. Tenente Coronel Luís Augusto da Silva 26.814.238 3,99%
Through LSMS - Investimentos, SGPS, S.A. which he controls 26.814.238 3,99%
Through Cinveste, SGPS, S.A., which it controls 26.814.238 3,99%
On its own account 26.778.148 3,98%
Through members of its board of directors and audit committee 36.090 0,01%

(1) As per official qualifying shareholdings announcements and other information as at December 31, 2009, received by the company

(2) With voting rights.

(3) Qualifying shareholding disclosed as officialy comunicated to the company (including shares owned by members of the board of directors and audit committee of Teixeira Duarte, S.A., and TDG, SGPS, S.A. as considered by the Portuguese Securities and Exchange Commission (CM VM ))

(4) Company fully controlled by M anuel Fino, SGPS, S.A..

(5) As foreseen in article 20 of the Portuguese Securities Code.

(6) Shares only imputed once in the calculation of the position of M etalúrgica Galaica, S.A..

INFORMATION REQUIRED BY LEGISLATION

As set forth in article 447º of the Portuguese Commercial Code and CMVM's (Portuguese Securities Commission) Regulation no. 5/2008, follow the 2009 CIMPOR shares trade belonging to:

Members of Board of Directors and Audit Committee

2009 Trading
Shareholders No.of Shares
31-12-2008
No.of Shares
31-12-2009
Acquisitions Disposals Price
Date
Ricardo Manuel Simões Bayão Horta 106,550
106,550
Luis Eduardo da Silva Barbosa 3,820 3,820
Vicente Arias Mosquera 2,200 2,200
José Manuel Baptista Fino 1,050 1,050
José Enrique Freire Arteta 1,130
1,130
Jorge Manuel Tavares Salavessa Moura 250
40,000 2.850 01-Jun
0 40,250 5.390 31-Jul
Luís Filipe Sequeira Martins 172,860
25,000 2.850 01-Jun
197,860
Manuel Luis Barata de Faria Blanc 396,860
25,000 2.850 01-Jun
between July 10
205,000 5.118(2) and 14
216,860
António Carlos Custódio Morais Varela 25,000(3) 25,000
Pedro Maria Calainho Teixeira Duarte 860,990
905,990(1
)
45,000 2.850 01-Jun
Jacques Lefèvre 3,320
3,320(4)
Jean Carlos Angulo 7,080
7,080(4)
Jaime de Macedo Santos Bastos 26,650
26,650
(1) On the date of his termination of office as member of the Board of Directors (30-09-2009).

(2) Average prices.

(3) On the date of his appointment as member of the Borad of Directors (13-05-2009).

(4) On the date of his termination of office as member of the Board of Directors (13-05-2009).

Persons discharging managerial responsibilities

2009 Trading
Shareholders No. of Shares
31-12-2008
No. of Shares
31-12-2009
Acquisitions Disposals Price
Date
Alexandre Roncon Garcez de Lencastre 59,480
1,380 3,263 14-May
6,200 2.850 01-Jun
67,060
Álvaro João Serra Nazaré 19,870
1,580 3.263 14-May
3,700 2,850 01-Jun
25,150
Álvaro Nunes Gomes 15,650
2,400 2.850 01-Jun
18,050
Angel Longarela Pena 22,680
2,550 3.263 14-May
2,500 2.850 01-Jun
725 4.900 16-Jun
24,505 4.900 17-Jun
2,500
Duarte Nuno Ferreira Marques da Silva 23,160
2,010 3.263 14-May
2,500 2.850 01-Jun
27,670
2009 Trading
Shareholders No. of Shares
31-12-2008
No. of Shares
31-12-2009
Acquisitions Disposals Price
Date
Eduardo Guedes Duarte 25,570
2,550 3.263 14-May
28,120 4.800 26-May
5,100 2.850 01-Jun
212 5.722 17-Sep
6 5.722 17-Sep
45 5.720 17-Sep
4,369 5.720 17-Sep
400 5.720 17-Sep
0 68 5.720 17-Sep
Fernando Santos Plaza 34,150
1,100 3.263 14-May
3,200 2.850 01-Jun
5,000 5.000 09-Jun
33,450
João Sande e Castro Salgado 21,250
1,340 3.263 14-May
5,000 4.885 01-Jun
3,300 2.850 01-Jun
9,500 5.350 03-Jul
11,390
Jorge Manuel Afonso Esteves dos Reis 24,840
5,000 4.500 17-Apr
1,380 3.263 14-May
1,220 4.700 19-May
3,600 2.850 01-Jun
23,600
Sara Marques Steiger Garção Esteves dos Reis(1) 1,645
310 3.263 14-May
1,955
José Augusto Bras Chaves 95,500
1,980 3.263 14-May
6,800 2.850 01-Jun
104,280
2009 Trading
Shareholders No. of Shares
31-12-08
No. of Shares
31-12-2009
Acquisitions Disposals Price
Date
Pedro Manuel de Freitas Pires Marques 15,700
1,280 3.263 14-May
2,700 2.850 01-Jun
19,680
Sérgio José Alves de Almeida 24,661
1,150 3.263 14-May
2,400 2.850 01-Jun
5,211 4.900 18-Jun
23,000
Valter Garbinatto de Albuquerque 2,870
4,870 2,000 2.850 01-Jun
Victor Manuel de Barros Albuquerque 3,000(2)

(1) Person closely related with Jorge Manuel Afonso Esteves dos Reis, manager of the group

(2) On the date of his inclusion on the list forseen on article 15 of the CMVM's (Portuguese Securities Commission) Regulation no. 5/2008 (31-12-2009).

Bonds

Bonds issued by CIMPOR Financial Operations, BV(1) (CIMPPL 4,5 27/05/2011)

2009 Trading
Name No. of Bonds
31-12-2008
No. of Bonds
31-12-2009
Acquisitions Face Value
Price Date
Luís Miguel da Silveira Ribeiro Vaz 0(2) 500 1.000 97,75% 03-Jun
500
Ricardo Manuel Simões Bayão Horta 0 200 1.000 100,40% 14-Jul
200

(1) Company fully controlled by CIMPOR - Cimentos de Portugal, SGPS, S.A.

(2) On the date of his appointment as member of the Board of Directors (13-05-2009).

Companies under article 447, no. 2d) of the Portuguese Commercial Code

Acquisitions and disposals of Shares:

2009 Trading
Shareholders No. of Shares
31-12-08
No. of Shares
31-12-09
Acquisitions Disposals Unit Price
Date
Pacim –SGPS, SA (1) 2,610,000
2,610,000
Pasim – Sociedade Imobiliária, S.A. (1) 1,000,000
1,000,000
Investifino – Investimentos e Participações, SGPS, S.A. (2) 136,140,000
64,406,000 4.750 16-Feb
71,734,000
Atlansider, SGPS, S.A. (3) 44,804,844
1,404,324 5.658 (4) between
July 30 and
October 21
43,400,520
Caxalp, SGPS, Lda. (5) 1,254,633
45,367 5.343 (4) between
341,084 6.468 (4) July 31 and
December 30
958,916
Caixa Geral de Depósitos, S.A. 64,419,376 (6) 45,799 5.104 (4) between
10,590 5.560 (4) May 21 and
18 December (6)
64,454,585
Parcaixa, SGPS, S.A. 0 (6)
between
May 26 and
88,870 5.504 (4) December 3
217 5.600 29-Sep
88,653
Caixa-Banco de Investimento, S.A. 0 (6)
14,000 4.946 (4) between
August 19
14,000 (4)
5.225
and 24
0

Notes:

(1) Pedro Maria Calaínho Teixeira Duarte, as member of the Board of Directors and majority shareholder on the date of his termination of office as member of the Board of Directors of CIMPOR (30-09-2009).

(2) José Manuel Baptista Fino, as member of the Board of Directors.

(3) José Enrique Freire Arteta as member of the Board of Directors and Ricardo Bayão Horta as member of the Board of Directors until the date of his termination of office (2-11-2009).

(4) Average Prices. Detailed information regarding these transactions is disclosed in annex to this report.

(5) Jorge Manuel Tavares Salavessa Moura, as managing partner.

(6) On 13-05-2009, appointment date of Jorge Humberto Correia Tomé as member of the Board of Directors of CIMPOR.

N ot a s:

Shares encumbrance:

2009
Shareholders No. of Shares
31-12-2008
No. of Shares
31-12-2009
Encumbrance Unencumbrance Date
Investifino – Investimentos e Participações, S.G.P.S (1) 136,140,000
64,406,000 16-Feb
71,734,000

Note:

(1) José Manuel Baptista Fino, as member of the Board of Directors.

Manuel Luís Barata de Faria Blanc (disposals)

Date Unit.Price
Quantity Date Unit.Price
13-Jul 5.100 895 14-Jul 5.130 813
13-Jul 5.100 895 14-Jul 5.140 873
13-Jul 5.100 895 14-Jul 5.130 900
13-Jul 5.100 895 14-Jul 5.134 903
13-Jul 5.100 895 14-Jul 5.120 914
13-Jul 5.100 895 14-Jul 5.140 931
13-Jul 5.100 895 14-Jul 5.120 970
13-Jul 5.100 895 14-Jul 5.140 986
13-Jul 5.100 895 14-Jul 5.140 986
13-Jul 5.100 1,200 14-Jul 5.114 1,000
13-Jul 5.100 1,223 14-Jul 5.120 1,007
13-Jul 5.100 1,223 14-Jul 5.130 1,062
13-Jul 5.100 1,223 14-Jul 5.145 1,073
13-Jul 5.100 1,223 14-Jul 5.140 1,109
13-Jul 5.100 1,223 14-Jul 5.119 1,120
13-Jul 5.100 1,223 14-Jul 5.150 1,183
13-Jul 5.100 1,223 14-Jul 5.120 1,200
13-Jul 5.100 1,244 14-Jul 5.120 1,200
13-Jul 5.100 3,759 14-Jul 5.145 1,255
Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity
10-Jul 5.145 2,628 14-Jul 5.120 21 14-Jul 5.120 1,395
10-Jul 5.140 6,000 14-Jul 5.140 70 14-Jul 5.130 1,457
10-Jul 5.135 20,000 14-Jul 5.119 73 14-Jul 5.120 1,466
13-Jul 5.100 6 14-Jul 5.134 86 14-Jul 5.130 1,500
13-Jul 5.100 18 14-Jul 5.134 97 14-Jul 5.140 1,514
13-Jul 5.100 79 14-Jul 5.131 113 14-Jul 5.140 1,573
13-Jul 5.100 167 14-Jul 5.140 153 14-Jul 5.119 1,606
13-Jul 5.100 200 14-Jul 5.140 157 14-Jul 5.120 1,693
13-Jul 5.100 205 14-Jul 5.134 162 14-Jul 5.120 1,757
13-Jul 5.100 290 14-Jul 5.131 5 14-Jul 5.120 1,757
13-Jul 5.100 296 14-Jul 5.123 7 14-Jul 5.120 1,757
13-Jul 5.100 296 14-Jul 5.145 172 14-Jul 5.120 1,757
13-Jul 5.100 305 14-Jul 5.134 200 14-Jul 5.130 1,786
13-Jul 5.100 339 14-Jul 5.140 238 14-Jul 5.120 1,831
13-Jul 5.100 372 14-Jul 5.140 342 14-Jul 5.131 1,861
13-Jul 5.100 506 14-Jul 5.125 400 14-Jul 5.131 1,887
13-Jul 5.100 511 14-Jul 5.140 427 14-Jul 5.130 1,902
13-Jul 5.100 542 14-Jul 5.140 458 14-Jul 5.120 2,000
13-Jul 5.100 556 14-Jul 5.125 500 14-Jul 5.123 2,000
13-Jul 5.100 599 14-Jul 5.120 526 14-Jul 5.130 2,000
13-Jul 5.100 605 14-Jul 5.140 534 14-Jul 5.140 2,007
13-Jul 5.100 612 14-Jul 5.120 545 14-Jul 5.120 2,178
13-Jul 5.100 681 14-Jul 5.120 581 14-Jul 5.123 2,203
13-Jul 5.100 687 14-Jul 5.140 581 14-Jul 5.130 2,314
13-Jul 5.100 695 14-Jul 5.130 600 14-Jul 5.119 2,927
13-Jul 5.100 845 14-Jul 5.134 638 14-Jul 5.120 2,980
13-Jul 5.100 874 14-Jul 5.120 660 14-Jul 5.160 3,000
13-Jul 5.100 877 14-Jul 5.131 745 14-Jul 5.160 3,817
13-Jul 5.100 895 14-Jul 5.140 758 14-Jul 5.108 10,000
13-Jul 5.100 895 14-Jul 5.123 797 14-Jul 5.100 12,846
13-Jul 5.100 895 14-Jul 5.140 803 14-Jul 5.100 30,000
13-Jul 5.100 895 14-Jul 5.130 813
13-Jul 5.100 895 14-Jul 5.140 873
13-Jul 5.100 895 14-Jul 5.130 900
13-Jul 5.100 895 14-Jul 5.134 903
13-Jul 5.100 895 14-Jul 5.120 914
13-Jul 5.100 895 14-Jul 5.140 931
13-Jul 5.100 895 14-Jul 5.120 970
13-Jul 5.100 895 14-Jul 5.140 986
13-Jul 5.100 895 14-Jul 5.140 986
13-Jul 5.100 1,200 14-Jul 5.114 1,000
13-Jul 5.100 1,223 14-Jul 5.120 1,007
13-Jul 5.100 1,223 14-Jul 5.130 1,062
13-Jul 5.100 1,223 14-Jul 5.145 1,073
13-Jul 5.100 1,223 14-Jul 5.140 1,109
13-Jul 5.100 1,223 14-Jul 5.119 1,120
13-Jul 5.100 1,223 14-Jul 5.150 1,183
13-Jul 5.100 1,223 14-Jul 5.120 1,200
13-Jul 5.100 1,244 14-Jul 5.120 1,200
13-Jul 5.100 3,759 14-Jul 5.145 1,255
Unit.Price
Quantity

Atlansider, SGPS, S.A. (disposals)

Date Unit.Price
Quantity Date
Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity
30-Jul 5.312 209 30-Jul 5.320 856 18-Sep 5.715 700 18-Sep 5.705 392 18-Sep 5.722 2,267
30-Jul 5.312 1,700 3-Ago 5.358 1,221 18-Sep 5.715 65 18-Sep 5.705 108 18-Sep 5.722 3,988
30-Jul 5.312 29 3-Ago 5.358 841 18-Sep 5.715 372 18-Sep 5.705 239 18-Sep 5.722 31,913
30-Jul 5.306 79 3-Ago 5.358 7 18-Sep 5.715 1,016 18-Sep 5.705 392 18-Sep 5.722 1,599
30-Jul 5.305 41 3-Ago 5.358 7 18-Sep 5.715 700 18-Sep 5.705 108 18-Sep 5.722 164
30-Jul 5.300 1,602 3-Ago 5.358 1,120 18-Sep 5.715 139 18-Sep 5.705 404 18-Sep 5.722 1,138
30-Jul 5.300 1,105 3-Ago 5.358 2,000 18-Sep 5.715 65 18-Sep 5.705 144 18-Sep 5.722 48
30-Jul 5.300 617 3-Ago 5.358 4,804 18-Sep 5.715 580 18-Sep 5.705 283 18-Sep 5.722 389
30-Jul 5.300 470 3-Ago 5.365 400 18-Sep 5.715 139 18-Sep 5.705 73 18-Sep 5.722 53
30-Jul 5.300 1,698 3-Ago 5.301 1,000 18-Sep 5.715 65 18-Sep 5.705 71 18-Sep 5.722 708
30-Jul 5.300 24 3-Ago 5.300 800 18-Sep 5.715 138 18-Sep 5.705 430 25-Sep 5.505 1,000
30-Jul 5.300 890 3-Ago 5.300 1,000 18-Sep 5.715 65 18-Sep 5.705 70 25-Sep 5.510 1,000
30-Jul 5.300 1,722 3-Ago 5.305 41 18-Sep 5.715 139 18-Sep 5.705 360 25-Sep 5.520 94
30-Jul 5.300 4,092 3-Ago 5.304 5,000 18-Sep 5.715 700 18-Sep 5.705 253 25-Sep 5.520 540
30-Jul 5.300 18 3-Ago 5.301 100 18-Sep 5.715 65 18-Sep 5.705 190 25-Sep 5.520 366
30-Jul 5.300 92 3-Ago 5.300 1,000 18-Sep 5.715 139 18-Sep 5.705 57 25-Sep 5.525 1,652
30-Jul 5.300 680 17-Sep 5.800 1,279 18-Sep 5.715 65 18-Sep 5.705 84 25-Sep 5.525 1,000
30-Jul 5.300 950 17-Sep 5.795 4,600 18-Sep 5.715 985 18-Sep 5.705 342 25-Sep 5.525 348
30-Jul 5.300 920 17-Sep 5.795 19 18-Sep 5.720 591 18-Sep 5.705 188 25-Sep 5.525 7
30-Jul 5.300 1,200 17-Sep 5.795 381 18-Sep 5.720 200 18-Sep 5.705 812 25-Sep 5.520 1,000
30-Jul 5.300 1,200 17-Sep 5.795 5,000 18-Sep 5.720 1,074 18-Sep 5.705 1,655 25-Sep 5.518 1,096
30-Jul 5.300 1,536 17-Sep 5.800 752 18-Sep 5.720 65 18-Sep 5.705 308 25-Sep 5.518 1,000
30-Jul 5.300 1,064 17-Sep 5.800 469 18-Sep 5.715 40 18-Sep 5.705 337 25-Sep 5.518 125
30-Jul 5.312 362 17-Sep 5.799 34 18-Sep 5.715 270 18-Sep 5.705 39 25-Sep 5.518 279
30-Jul 5.312 179 17-Sep 5.795 4,275 18-Sep 5.715 361 18-Sep 5.703 161 25-Sep 5.520 1,000
30-Jul 5.312 16 17-Sep 5.795 533 18-Sep 5.715 766 18-Sep 5.700 1,000 25-Sep 5.520 1,500
30-Jul 5.312 1,358 17-Sep 5.795 192 18-Sep 5.703 1,272 18-Sep 5.704 495 25-Sep 5.525 2,500
30-Jul 5.312 564 17-Sep 5.799 1,809 18-Sep 5.703 2,345 18-Sep 5.704 332 25-Sep 5.500 921
30-Jul 5.312 362 17-Sep 5.799 657 18-Sep 5.703 1,383 18-Sep 5.704 172 25-Sep 5.500 300
30-Jul 5.312 443 17-Sep 5.793 20,000 18-Sep 5.703 72 18-Sep 5.704 1,501 25-Sep 5.500 1,000
30-Jul 5.312 156 17-Sep 5.795 736 18-Sep 5.703 928 18-Sep 5.700 11 25-Sep 5.500 2,000
30-Jul 5.312 1,500 17-Sep 5.795 486 18-Sep 5.702 856 18-Sep 5.700 333 25-Sep 5.500 1,000
30-Jul 5.312 644 17-Sep 5.795 3,778 18-Sep 5.700 100 18-Sep 5.700 259 25-Sep 5.500 900
30-Jul 5.312 856 18-Sep 5.712 700 18-Sep 5.700 44 18-Sep 5.700 1,474 25-Sep 5.500 1,000
30-Jul 5.312 1,500 18-Sep 5.710 1,578 18-Sep 5.700 956 18-Sep 5.700 1,532 25-Sep 5.500 500
30-Jul 5.312 122 18-Sep 5.710 222 18-Sep 5.700 44 18-Sep 5.700 598 25-Sep 5.500 455
30-Jul 5.320 3,004 18-Sep 5.714 700 18-Sep 5.700 1,762 18-Sep 5.700 293 25-Sep 5.500 1,924
30-Jul 5.320 1,411 18-Sep 5.712 700 18-Sep 5.700 738 18-Sep 5.717 293 25-Sep 5.500 2,221
30-Jul 5.320 585 18-Sep 5.710 1,100 18-Sep 5.710 588 18-Sep 5.717 384 28-Sep 5.525 2,500
30-Jul 5.320 279 18-Sep 5.715 138 18-Sep 5.710 588 18-Sep 5.700 189 28-Sep 5.530 2,500
30-Jul 5.320 3,000 18-Sep 5.715 131 18-Sep 5.710 628 18-Sep 5.700 1,011 28-Sep 5.540 732
30-Jul 5.320 1,721 18-Sep 5.715 857 18-Sep 5.710 20 18-Sep 5.700 707 28-Sep 5.540 732
30-Jul 5.321 1,892 18-Sep 5.715 499 18-Sep 5.710 676 18-Sep 5.700 1,080 28-Sep 5.540 733
30-Jul 5.321 1,030 18-Sep 5.715 139 18-Sep 5.710 242 18-Sep 5.700 120 28-Sep 5.540 303
30-Jul 5.321 2,703 18-Sep 5.715 583 18-Sep 5.710 655 18-Sep 5.700 1,104 28-Sep 5.508 1,000
30-Jul 5.320 1,851 18-Sep 5.715 153 18-Sep 5.710 103 18-Sep 5.700 112 28-Sep 5.549 1,500
30-Jul 5.320 571 18-Sep 5.715 100 18-Sep 5.700 1,063 18-Sep 5.710 379 28-Sep 5.550 724
30-Jul 5.320 1,530 18-Sep 5.715 200 18-Sep 5.700 515 18-Sep 5.722 1,952 28-Sep 5.550 400
30-Jul 5.320 1,048 18-Sep 5.715 924 18-Sep 5.700 55 18-Sep 5.722 36 28-Sep 5.550 1,376
30-Jul 5.320 3,003 18-Sep 5.715 139 18-Sep 5.705 500 18-Sep 5.722 366 28-Sep 5.500 3,571
Unit.Price
Quantity Date
Unit.Price
Quantity Date
Unit.Price
Quantity
Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity
28-Sep 5.500 429 28-Sep 5.515 295 29-Sep 5.590 816 30-Sep 5.614 1,000 30-Sep 5.637 561
28-Sep 5.511 1,000 28-Sep 5.500 500 29-Sep 5.590 30 30-Sep 5.614 501 30-Sep 5.637 376
28-Sep 5.510 1,000 28-Sep 5.500 500 29-Sep 5.590 13 30-Sep 5.645 1,500 30-Sep 5.635 1,472
28-Sep 5.530 1,353 28-Sep 5.500 180 29-Sep 5.590 9 30-Sep 5.655 1,500 30-Sep 5.634 407
28-Sep 5.530 632 28-Sep 5.500 1,500 29-Sep 5.585 15 30-Sep 5.658 2,500 30-Sep 5.630 444
28-Sep 5.530 515 28-Sep 5.500 200 29-Sep 5.585 1,611 30-Sep 5.683 1,019 30-Sep 5.630 1,000
28-Sep 5.535 1,875 28-Sep 5.500 1,000 29-Sep 5.585 874 30-Sep 5.683 481 30-Sep 5.659 934
28-Sep 5.535 267 28-Sep 5.523 105 29-Sep 5.590 1,392 30-Sep 5.695 2 30-Sep 5.641 966
28-Sep 5.535 358 28-Sep 5.523 200 29-Sep 5.590 1,000 30-Sep 5.695 1,087 30-Sep 5.661 3,298
28-Sep 5.559 359 28-Sep 5.523 200 29-Sep 5.592 1,099 30-Sep 5.695 1,413 30-Sep 5.661 1,532
28-Sep 5.559 348 28-Sep 5.523 435 29-Sep 5.571 784 30-Sep 5.695 1,089 30-Sep 5.661 70
28-Sep 5.550 1,100 28-Sep 5.503 2,000 29-Sep 5.570 44 30-Sep 5.695 1,409 30-Sep 5.660 14
28-Sep 5.533 131 28-Sep 5.500 1,065 29-Sep 5.567 88 30-Sep 5.709 1,200 30-Sep 5.660 2,500
28-Sep 5.533 903 28-Sep 5.500 1,199 29-Sep 5.561 845 30-Sep 5.709 1,200 30-Sep 5.645 11,510
28-Sep 5.533 3,966 28-Sep 5.500 621 29-Sep 5.560 655 30-Sep 5.709 1,200 30-Sep 5.645 3,491
28-Sep 5.540 1,100 28-Sep 5.502 400 29-Sep 5.585 2,153 30-Sep 5.709 1,200 30-Sep 5.645 2,006
28-Sep 5.540 3,361 28-Sep 5.502 200 29-Sep 5.562 1,000 30-Sep 5.709 200 30-Sep 5.645 3,197
28-Sep 5.540 539 28-Sep 5.501 271 29-Sep 5.561 900 30-Sep 5.705 2,500 30-Sep 5.645 4,386
28-Sep 5.550 1,100 28-Sep 5.501 1,166 29-Sep 5.560 5,947 30-Sep 5.700 362 30-Sep 5.645 5,300
28-Sep 5.550 430 28-Sep 5.510 5,000 29-Sep 5.590 1,100 30-Sep 5.700 531 1-Oct 5.673 1,021
28-Sep 5.550 14 28-Sep 5.510 15,000 29-Sep 5.585 2,500 30-Sep 5.700 1,607 1-Oct 5.673 1,000
28-Sep 5.550 38 29-Sep 5.600 2,500 29-Sep 5.590 1,100 30-Sep 5.700 1,133 1-Oct 5.679 100
28-Sep 5.550 45 29-Sep 5.567 2,865 29-Sep 5.590 1,713 30-Sep 5.700 797 1-Oct 5.681 4,340
28-Sep 5.550 54 29-Sep 5.567 135 29-Sep 5.590 69 30-Sep 5.700 1,133 1-Oct 5.681 36
28-Sep 5.550 949 29-Sep 5.590 2,500 29-Sep 5.590 131 30-Sep 5.700 807 1-Oct 5.650 2,800
28-Sep 5.550 1,100 29-Sep 5.600 318 29-Sep 5.590 587 30-Sep 5.700 1,133 1-Oct 5.650 1,100
28-Sep 5.550 170 29-Sep 5.572 82 29-Sep 5.590 13 30-Sep 5.700 807 1-Oct 5.650 922
28-Sep 5.550 1,100 29-Sep 5.572 1,418 29-Sep 5.590 1,087 30-Sep 5.700 1,133 1-Oct 5.650 88
28-Sep 5.550 3,900 29-Sep 5.595 1,300 29-Sep 5.590 1,700 30-Sep 5.700 807 1-Oct 5.650 90
28-Sep 5.559 393 29-Sep 5.595 200 29-Sep 5.596 1,500 30-Sep 5.700 1,133 1-Oct 5.686 898
28-Sep 5.550 350 29-Sep 5.583 250 29-Sep 5.596 381 30-Sep 5.700 807 1-Oct 5.686 788
28-Sep 5.550 750 29-Sep 5.583 180 29-Sep 5.596 935 30-Sep 5.700 310 1-Oct 5.686 334
28-Sep 5.550 1,479 29-Sep 5.583 26 29-Sep 5.600 2,182 30-Sep 5.715 1,133 1-Oct 5.686 395
28-Sep 5.550 800 29-Sep 5.582 2,544 29-Sep 5.605 2,500 30-Sep 5.715 3,867 1-Oct 5.689 950
28-Sep 5.550 300 29-Sep 5.582 1,024 29-Sep 5.619 2,500 30-Sep 5.720 2,500 1-Oct 5.687 200
28-Sep 5.550 1,321 29-Sep 5.582 462 29-Sep 5.605 1,192 30-Sep 5.652 1,140 1-Oct 5.687 12,032
28-Sep 5.559 29 29-Sep 5.581 1,294 29-Sep 5.603 1,190 30-Sep 5.650 1,000 1-Oct 5.689 100
28-Sep 5.559 1,071 29-Sep 5.581 1,178 29-Sep 5.602 1,750 30-Sep 5.650 360 1-Oct 5.689 616
28-Sep 5.559 2,800 29-Sep 5.580 17 29-Sep 5.601 452 30-Sep 5.651 1,000 1-Oct 5.689 953
28-Sep 5.559 5 29-Sep 5.580 1,025 29-Sep 5.610 668 30-Sep 5.651 599 1-Oct 5.689 347
28-Sep 5.551 1,599 29-Sep 5.596 184 29-Sep 5.610 668 30-Sep 5.650 2,041 1-Oct 5.687 1,935
28-Sep 5.551 1,000 29-Sep 5.567 1,292 29-Sep 5.610 3,664 30-Sep 5.650 360 1-Oct 5.687 565
28-Sep 5.550 2,401 29-Sep 5.566 1,790 29-Sep 5.600 1,778 30-Sep 5.666 886 1-Oct 5.678 1,834
28-Sep 5.559 3,495 29-Sep 5.566 500 29-Sep 5.600 1,750 30-Sep 5.666 93 1-Oct 5.679 100
28-Sep 5.557 1,320 29-Sep 5.566 1,361 29-Sep 5.600 1,472 30-Sep 5.665 373 1-Oct 5.680 137
28-Sep 5.557 249 29-Sep 5.565 57 29-Sep 5.625 2,751 30-Sep 5.665 1,353 1-Oct 5.680 807
28-Sep 5.551 1,801 29-Sep 5.590 98 29-Sep 5.600 201 30-Sep 5.650 2,295 1-Oct 5.680 623
28-Sep 5.551 552 29-Sep 5.590 83 29-Sep 5.600 12,048 30-Sep 5.640 1,000 1-Oct 5.682 1,222
28-Sep 5.550 1,628 29-Sep 5.590 1,460 30-Sep 5.645 1,500 30-Sep 5.640 500 1-Oct 5.682 760
28-Sep 5.550 413 29-Sep 5.580 5,000 30-Sep 5.615 999 30-Sep 5.639 36 1-Oct 5.682 234
Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity
1-Oct 5.682 784 7-Oct 5.606 146 8-Oct 5.660 1,100 9-Oct 5.665 883 9-Oct 5.660 127
1-Oct 5.656 2,650 7-Oct 5.615 401 8-Oct 5.650 7 9-Oct 5.670 1 9-Oct 5.660 100
1-Oct 5.699 2,500 7-Oct 5.615 1,602 8-Oct 5.650 4,000 9-Oct 5.670 166 9-Oct 5.660 1
1-Oct 5.712 513 7-Oct 5.615 325 8-Oct 5.650 350 9-Oct 5.670 163 9-Oct 5.660 913
1-Oct 5.712 1,828 7-Oct 5.615 172 8-Oct 5.650 643 9-Oct 5.670 315 9-Oct 5.660 9
1-Oct 5.714 31 7-Oct 5.620 1,927 8-Oct 5.670 314 9-Oct 5.670 313 9-Oct 5.665 916
1-Oct 5.714 128 7-Oct 5.615 2,500 8-Oct 5.670 196 9-Oct 5.670 313 9-Oct 5.665 1,415
1-Oct 5.713 83 7-Oct 5.605 467 8-Oct 5.670 152 9-Oct 5.670 83 9-Oct 5.665 69
1-Oct 5.713 1,254 7-Oct 5.605 2,033 8-Oct 5.670 87 9-Oct 5.670 21 9-Oct 5.665 100
1-Oct 5.713 663 7-Oct 5.600 286 8-Oct 5.670 251 9-Oct 5.670 62 9-Oct 5.665 381
7-Oct 5.625 15,000 7-Oct 5.600 558 8-Oct 5.669 54 9-Oct 5.670 180 9-Oct 5.665 1,588
7-Oct 5.645 4,000 7-Oct 5.600 1,607 8-Oct 5.669 152 9-Oct 5.670 161 9-Oct 5.665 531
7-Oct 5.645 1,000 7-Oct 5.600 49 8-Oct 5.669 44 9-Oct 5.670 587 9-Oct 5.660 29
7-Oct 5.635 3,000 7-Oct 5.605 1,697 8-Oct 5.675 99 9-Oct 5.665 695 9-Oct 5.660 71
7-Oct 5.635 1,000 7-Oct 5.605 803 8-Oct 5.669 500 9-Oct 5.665 1,705 9-Oct 5.660 107
7-Oct 5.635 1,000 7-Oct 5.600 303 8-Oct 5.669 2,500 9-Oct 5.668 100 9-Oct 5.660 2,293
7-Oct 5.635 2,500 7-Oct 5.600 516 8-Oct 5.660 168 9-Oct 5.670 30 9-Oct 5.650 135
7-Oct 5.629 2,500 7-Oct 5.600 515 8-Oct 5.660 1,832 9-Oct 5.665 346 9-Oct 5.650 258
7-Oct 5.625 2,500 7-Oct 5.600 515 8-Oct 5.656 723 9-Oct 5.665 1,550 9-Oct 5.650 2,985
7-Oct 5.610 3,962 7-Oct 5.600 651 8-Oct 5.656 1,277 9-Oct 5.665 535 9-Oct 5.650 429
7-Oct 5.610 186 7-Oct 5.600 906 9-Oct 5.685 7,094 9-Oct 5.665 675 9-Oct 5.650 10
7-Oct 5.612 600 7-Oct 5.600 1,594 9-Oct 5.685 611 9-Oct 5.665 1,972 9-Oct 5.652 51
7-Oct 5.612 252 7-Oct 5.615 2,000 9-Oct 5.685 404 9-Oct 5.665 4 9-Oct 5.652 174
7-Oct 5.620 4,700 7-Oct 5.620 573 9-Oct 5.685 4,391 9-Oct 5.665 17 9-Oct 5.652 96
7-Oct 5.620 5,000 7-Oct 5.615 45 9-Oct 5.678 96 9-Oct 5.665 65 9-Oct 5.652 40
7-Oct 5.610 488 7-Oct 5.615 909 9-Oct 5.678 148 9-Oct 5.665 111 9-Oct 5.652 822
7-Oct 5.610 659 7-Oct 5.615 1,046 9-Oct 5.678 6 9-Oct 5.665 36 9-Oct 5.665 491
7-Oct 5.610 538 7-Oct 5.615 749 9-Oct 5.678 85 9-Oct 5.665 291 9-Oct 5.665 109
7-Oct 5.610 537 7-Oct 5.615 1,211 9-Oct 5.678 294 9-Oct 5.665 118 9-Oct 5.665 109
7-Oct 5.610 537 7-Oct 5.615 1,215 9-Oct 5.678 327 9-Oct 5.660 3,646 9-Oct 5.665 339
7-Oct 5.610 539 7-Oct 5.617 325 9-Oct 5.678 774 9-Oct 5.660 1,354 9-Oct 5.665 228
7-Oct 5.610 539 7-Oct 5.620 2,500 9-Oct 5.678 317 9-Oct 5.655 2,373 9-Oct 5.665 21
7-Oct 5.610 539 7-Oct 5.600 1,966 9-Oct 5.678 353 9-Oct 5.650 2,128 9-Oct 5.665 700
7-Oct 5.610 624 7-Oct 5.601 34 9-Oct 5.678 100 9-Oct 5.650 62 9-Oct 5.665 100
7-Oct 5.610 422 8-Oct 5.650 6,687 9-Oct 5.670 456 9-Oct 5.650 539 9-Oct 5.665 128
7-Oct 5.610 548 8-Oct 5.650 3,313 9-Oct 5.670 693 9-Oct 5.650 2,065 9-Oct 5.650 187
7-Oct 5.610 548 8-Oct 5.654 171 9-Oct 5.670 446 9-Oct 5.650 206 9-Oct 5.650 51
7-Oct 5.610 385 8-Oct 5.654 136 9-Oct 5.670 442 9-Oct 5.655 259 9-Oct 5.650 195
7-Oct
7-Oct
5.610
5.610
1,033
1,032
8-Oct
8-Oct
5.654
5.650
1,132
1,076
9-Oct
9-Oct
5.675
5.675
100
363
9-Oct
9-Oct
5.655
5.655
1,874
494
9-Oct
9-Oct
5.650
5.650
68
7
7-Oct 5.610 1,032 8-Oct 5.650 680 9-Oct 5.671 365 9-Oct 5.650 4,668 9-Oct 5.650 550
7-Oct 5.600 715 8-Oct 5.650 87 9-Oct 5.671 411 9-Oct 5.650 332 9-Oct 5.650 900
7-Oct 5.600 1,054 8-Oct 5.650 465 9-Oct 5.671 411 9-Oct 5.665 5 9-Oct 5.650 900
7-Oct 5.600 1,256 8-Oct 5.650 192 9-Oct 5.671 80 9-Oct 5.665 1,564 9-Oct 5.653 1,688
7-Oct 5.600 1,117 8-Oct 5.660 61 9-Oct 5.671 100 9-Oct 5.665 365 9-Oct 5.654 71
7-Oct 5.600 858 8-Oct 5.660 106 9-Oct 5.671 61 9-Oct 5.665 566 9-Oct 5.654 130
7-Oct 5.619 2,500 8-Oct 5.660 91 9-Oct 5.675 322 9-Oct 5.660 1,569 9-Oct 5.654 100
7-Oct 5.610 2,500 8-Oct 5.660 290 9-Oct 5.675 250 9-Oct 5.660 66 9-Oct 5.654 153
7-Oct 5.606 99 8-Oct 5.660 4 9-Oct 5.675 250 9-Oct 5.660 1,611 9-Oct 5.665 100
7-Oct 5.606 555 8-Oct 5.660 848 9-Oct 5.675 250 9-Oct 5.660 604 9-Oct 5.665 125
Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity
9-Oct 5.665 50 9-Oct 5.679 12 14-Oct
5.689
1,000 14-Oct 5.681 199 14-Oct 5.683 1,000
9-Oct 5.661 172 9-Oct 5.679 68 14-Oct
5.690
274 14-Oct 5.681 173 14-Oct 5.683 5,655
9-Oct 5.664 2,116 9-Oct 5.670 1 14-Oct
5.689
1,000 14-Oct 5.680 1,164 14-Oct 5.685 1,000
9-Oct 5.664 87 9-Oct 5.670 1,199 14-Oct
5.692
1,000 14-Oct 5.680 123 14-Oct 5.685 4,000
9-Oct 5.664 125 9-Oct 5.670 100 14-Oct
5.698
1,000 14-Oct 5.680 1,992 14-Oct 5.689 2,000
9-Oct 5.670 42 9-Oct 5.670 224 14-Oct
5.698
2,000 14-Oct 5.680 1,325 14-Oct 5.699 1,000
9-Oct 5.670 100 9-Oct 5.670 1,337 14-Oct
5.699
1,000 14-Oct 5.680 900 14-Oct 5.699 4,000
9-Oct 5.670 100 9-Oct 5.670 900 14-Oct
5.700
2,000 14-Oct 5.679 100 14-Oct 5.702 126
9-Oct 5.670 36 9-Oct 5.670 39 14-Oct
5.700
1,000 14-Oct 5.680 500 14-Oct 5.702 544
9-Oct 5.670 188 9-Oct 5.650 2,500 14-Oct
5.700
1,000 14-Oct 5.680 206 14-Oct 5.702 330
9-Oct 5.660 97 12-Oct 5.677 100 14-Oct
5.700
423 14-Oct 5.680 500 14-Oct 5.708 2,000
9-Oct 5.660 84 12-Oct 5.677 2,574 14-Oct
5.700
577 14-Oct 5.680 500 14-Oct 5.720 784
9-Oct 5.660 59 12-Oct 5.677 100 14-Oct
5.686
10 14-Oct 5.680 1 14-Oct 5.720 147
9-Oct 5.663 1,223 12-Oct 5.677 2,326 14-Oct
5.684
10 14-Oct 5.680 426 14-Oct 5.720 19
9-Oct 5.663 694 12-Oct 5.670 900 14-Oct
5.684
2 14-Oct 5.680 74 14-Oct 5.720 22
9-Oct 5.663 113 12-Oct 5.670 16 14-Oct
5.663
267 14-Oct 5.680 500 14-Oct 5.720 186
9-Oct 5.663 230 12-Oct 5.670 518 14-Oct
5.663
711 14-Oct 5.680 547 14-Oct 5.720 3,842
9-Oct 5.670 66 12-Oct 5.670 516 14-Oct
5.676
10 14-Oct 5.680 500 15-Oct 5.780 495
9-Oct 5.670 109 12-Oct 5.670 516 14-Oct
5.676
18 14-Oct 5.680 500 15-Oct 5.780 505
9-Oct 5.670 54 12-Oct 5.670 13 14-Oct
5.676
42 14-Oct 5.680 269 15-Oct 5.708 1,402
9-Oct 5.660 480 12-Oct 5.670 271 14-Oct
5.663
189 14-Oct 5.680 231 15-Oct 5.708 1,187
9-Oct 5.650 414 12-Oct 5.670 650 14-Oct
5.662
741 14-Oct 5.680 246 15-Oct 5.708 522
9-Oct 5.650 1,393 12-Oct 5.664 2,400 14-Oct
5.661
1,000 14-Oct 5.681 1,000 15-Oct 5.708 663
9-Oct 5.651 75 12-Oct 5.644 100 14-Oct
5.661
1,000 14-Oct 5.680 543 15-Oct 5.707 275
9-Oct 5.652 13 14-Oct 5.690 300 14-Oct
5.666
812 14-Oct 5.680 157 15-Oct 5.707 1,922
9-Oct 5.652 605 14-Oct 5.690 700 14-Oct
5.666
180 14-Oct 5.680 93 15-Oct 5.707 2,469
9-Oct 5.670 4 14-Oct 5.697 1,000 14-Oct
5.666
8 14-Oct 5.680 505 15-Oct 5.707 560
9-Oct 5.670 87 14-Oct 5.698 1,000 14-Oct
5.665
300 14-Oct 5.680 195 15-Oct 5.740 66
9-Oct 5.670 2 14-Oct 5.699 213 14-Oct
5.665
200 14-Oct 5.680 507 15-Oct 5.740 90
9-Oct 5.670 60 14-Oct 5.699 113 14-Oct
5.665
84 14-Oct 5.681 1,000 15-Oct 5.740 444
9-Oct 5.670 87 14-Oct 5.699 83 14-Oct
5.665
416 14-Oct 5.681 310 15-Oct 5.740 516
9-Oct 5.666 107 14-Oct 5.699 17 14-Oct
5.663
1,000 14-Oct 5.681 1,000 15-Oct 5.740 3
9-Oct 5.666 194 14-Oct 5.699 446 14-Oct
5.664
1,000 14-Oct 5.681 1,000 15-Oct 5.740 14
9-Oct 5.666 66 14-Oct 5.699 29 14-Oct
5.672
1,000 14-Oct 5.681 750 15-Oct 5.740 67
9-Oct 5.666 92 14-Oct 5.699 99 14-Oct
5.665
2,000 14-Oct 5.681 46 15-Oct 5.740 262
9-Oct 5.666 60 14-Oct 5.680 600 14-Oct
5.665
1,261 14-Oct 5.683 779 15-Oct 5.739 1,660
9-Oct 5.667 1,007 14-Oct 5.680 400 14-Oct
5.665
739 14-Oct 5.683 1,345 15-Oct 5.739 1,998
9-Oct 5.668 100 14-Oct 5.679 226 14-Oct
5.666
100 14-Oct 5.681 1,000 15-Oct 5.739 342
9-Oct 5.668 874 14-Oct 5.679 774 14-Oct
5.666
900 14-Oct 5.681 692 15-Oct 5.739 299
9-Oct 5.670 37 14-Oct 5.661 1,338 14-Oct
5.665
1,000 14-Oct 5.680 1,000 15-Oct 5.739 701
9-Oct 5.670 21 14-Oct 5.661 174 14-Oct
5.665
1,000 14-Oct 5.680 300 15-Oct 5.740 600
9-Oct 5.670 86 14-Oct 5.661 488 14-Oct
5.668
1,000 14-Oct 5.680 700 15-Oct 5.740 1,224
9-Oct 5.670 40 14-Oct 5.665 1,000 14-Oct
5.683
1,000 14-Oct 5.681 880 15-Oct 5.740 600
9-Oct 5.670 117 14-Oct 5.665 1,000 14-Oct
5.683
1,894 14-Oct 5.681 120 15-Oct 5.740 4
9-Oct 5.670 100 14-Oct 5.675 6 14-Oct
5.683
487 14-Oct 5.681 308 15-Oct 5.740 13
9-Oct 5.670 78 14-Oct 5.675 115 14-Oct
5.683
262 14-Oct 5.683 547 15-Oct 5.740 583
9-Oct 5.674 308 14-Oct 5.675 13 14-Oct
5.683
251 14-Oct 5.680 701 15-Oct 5.740 355
9-Oct 5.679 1,179 14-Oct 5.675 866 14-Oct
5.683
202 14-Oct 5.680 1,000 15-Oct 5.740 159
9-Oct 5.679 341 14-Oct 5.690 696 14-Oct
5.683
19 14-Oct 5.680 299 15-Oct 5.740 1,949
9-Oct 5.679 900 14-Oct 5.690 30 14-Oct
5.681
24 14-Oct 5.683 453 15-Oct 5.740 51
Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity Date Unit.Price
Quantity
15-Oct 5.740 1,875 15-Oct 5.726 300 15-Oct 5.734 104 16-Oct 5.757 100 16-Oct 5.750 418
15-Oct 5.736 222 15-Oct 5.726 703 15-Oct 5.734 72 16-Oct 5.757 91 16-Oct 5.750 306
15-Oct 5.736 4 15-Oct 5.726 15 15-Oct 5.734 193 16-Oct 5.757 665 16-Oct 5.750 606
15-Oct 5.736 12 15-Oct 5.726 108 15-Oct 5.734 500 16-Oct 5.757 1,677 16-Oct 5.754 681
15-Oct 5.730 1,036 15-Oct 5.740 225 15-Oct 5.734 1,307 16-Oct 5.757 323 16-Oct 5.754 1,319
15-Oct 5.730 1,726 15-Oct 5.733 341 15-Oct 5.734 853 16-Oct 5.756 1,146 16-Oct 5.755 1,472
15-Oct 5.730 1,125 15-Oct 5.733 659 15-Oct 5.734 147 16-Oct 5.756 854 16-Oct 5.755 412
15-Oct 5.737 296 15-Oct 5.733 4 15-Oct 5.738 610 16-Oct 5.758 1,993 16-Oct 5.751 116
15-Oct 5.737 956 15-Oct 5.733 279 15-Oct 5.738 1,100 16-Oct 5.758 7 16-Oct 5.750 675
15-Oct 5.737 558 15-Oct 5.732 553 15-Oct 5.738 290 16-Oct 5.761 714 16-Oct 5.750 731
15-Oct 5.737 190 15-Oct 5.731 1,000 15-Oct 5.730 584 16-Oct 5.761 1,286 16-Oct 5.750 594
15-Oct 5.738 558 15-Oct 5.724 164 15-Oct 5.730 74 16-Oct 5.760 1,993 16-Oct 5.752 500
15-Oct 5.738 1,442 15-Oct 5.728 1,000 15-Oct 5.730 2,342 16-Oct 5.760 7 16-Oct 5.752 1,446
15-Oct 5.728 277 15-Oct 5.728 107 15-Oct 5.730 537 16-Oct 5.763 981 16-Oct 5.741 54
15-Oct 5.727 4,723 15-Oct 5.728 558 15-Oct 5.730 7,999 16-Oct 5.763 414 16-Oct 5.693 284
15-Oct 5.722 1,823 15-Oct 5.728 335 16-Oct 5.741 1,060 16-Oct 5.756 605 16-Oct 5.693 100
15-Oct 5.722 1,000 15-Oct 5.728 143 16-Oct 5.741 1,833 16-Oct 5.756 1,138 16-Oct 5.691 616
15-Oct 5.722 556 15-Oct 5.709 1,993 16-Oct 5.741 1,107 16-Oct 5.756 862 16-Oct 5.695 356
15-Oct 5.722 1,621 15-Oct 5.709 99 16-Oct 5.741 500 16-Oct 5.756 1,079 16-Oct 5.694 270
15-Oct 5.722 552 15-Oct 5.709 518 16-Oct 5.741 100 16-Oct 5.756 921 16-Oct 5.693 374
15-Oct 5.721 2,000 15-Oct 5.709 130 16-Oct 5.741 13 16-Oct 5.737 1,249 16-Oct 5.694 275
15-Oct 5.720 448 15-Oct 5.708 493 16-Oct 5.741 287 16-Oct 5.737 549 16-Oct 5.691 725
15-Oct 5.718 700 15-Oct 5.708 914 16-Oct 5.741 100 16-Oct 5.737 202 16-Oct 5.690 2,000
15-Oct 5.718 2,300 15-Oct 5.708 485 16-Oct 5.753 2,000 16-Oct 5.750 292 16-Oct 5.690 270
15-Oct 5.729 624 15-Oct 5.729 300 16-Oct 5.720 75 16-Oct 5.750 22 16-Oct 5.690 730
15-Oct 5.729 436 15-Oct 5.729 352 16-Oct 5.720 402 16-Oct 5.750 1,686 16-Oct 5.694 324
15-Oct 5.729 7 15-Oct 5.729 348 16-Oct 5.720 523 16-Oct 5.749 977 16-Oct 5.694 1,558
15-Oct 5.727 258 15-Oct 5.729 212 16-Oct 5.745 280 16-Oct 5.749 1,023 16-Oct 5.692 118
15-Oct 5.727 200 15-Oct 5.729 598 16-Oct 5.745 253 16-Oct 5.740 2,000 16-Oct 5.694 141
15-Oct 5.727 789 15-Oct 5.729 190 16-Oct 5.745 1,467 16-Oct 5.740 2,000 16-Oct 5.694 1,845
15-Oct 5.720 4,548 15-Oct 5.729 410 16-Oct 5.750 330 16-Oct 5.741 2,000 16-Oct 5.692 14
15-Oct 5.720 452 15-Oct 5.729 560 16-Oct 5.750 205 16-Oct 5.748 85 16-Oct 5.695 29
15-Oct 5.727 628 15-Oct 5.729 30 16-Oct 5.750 1,464 16-Oct 5.748 415 16-Oct 5.695 1,880
15-Oct 5.727 125 15-Oct 5.729 110 16-Oct 5.750 1 16-Oct 5.748 200 16-Oct 5.695 91
15-Oct 5.729 933 15-Oct 5.729 1,132 16-Oct 5.753 2,000 16-Oct 5.748 300 16-Oct 5.700 100
15-Oct 5.719 1,783 15-Oct 5.729 500 16-Oct 5.752 747 16-Oct 5.748 462 16-Oct 5.699 1,900
15-Oct 5.719 1,205 15-Oct 5.729 258 16-Oct 5.750 870 16-Oct 5.748 500 16-Oct 5.734 1,823
15-Oct 5.719 12 15-Oct 5.735 500 16-Oct 5.750 383 16-Oct 5.748 38 16-Oct 5.722 177
15-Oct 5.728 1,000 15-Oct 5.735 360 16-Oct 5.749 1,716 16-Oct 5.742 1,799 16-Oct 5.740 2,000
15-Oct 5.728 580 15-Oct 5.735 140 16-Oct 5.749 284 16-Oct 5.741 201 16-Oct 5.745 1,569
15-Oct 5.726 204 15-Oct 5.734 51 16-Oct 5.758 1,190 16-Oct 5.745 2,000 16-Oct 5.745 431
15-Oct 5.726 328 15-Oct 5.734 152 16-Oct 5.758 257 16-Oct 5.748 500 16-Oct 5.745 914
15-Oct 5.726 468 15-Oct 5.732 49 16-Oct 5.758 448 16-Oct 5.748 65 16-Oct 5.745 430
15-Oct 5.728 283 15-Oct 5.732 560 16-Oct 5.758 91 16-Oct 5.748 435 16-Oct 5.745 656
15-Oct 5.726 370 15-Oct 5.732 1,391 16-Oct 5.756 2,000 16-Oct 5.748 130 16-Oct 5.750 2,000
15-Oct 5.726 1,630 15-Oct 5.734 77 16-Oct 5.756 14 16-Oct 5.748 500 16-Oct 5.755 290
15-Oct 5.726 557 15-Oct 5.734 220 16-Oct 5.755 1,254 16-Oct 5.748 78 16-Oct 5.755 159
15-Oct 5.726 675 15-Oct 5.734 1,051 16-Oct 5.754 746 16-Oct 5.748 29 16-Oct 5.754 1,363
15-Oct 5.726 955 15-Oct 5.732 449 16-Oct 5.757 148 16-Oct 5.748 263 16-Oct 5.754 188
15-Oct 5.726 1,824 15-Oct 5.734 1,824 16-Oct 5.757 996 16-Oct 5.750 670 16-Oct 5.740 1,928
Unit.Price Unit.Price Unit.Price Unit.Price Unit.Price
Date Quantity Date Quantity Date Quantity Date Quantity Date Quantity
16-Oct 5.740 72 19-Oct 5.747 5,000 20-Oct 5.720 220 20-Oct 5.739 105 21-Oct 5.700 54
16-Oct 5.742 4,451 19-Oct 5.747 5,000 20-Oct 5.744 43 20-Oct 5.739 417 21-Oct 5.700 395
16-Oct 5.742 1,600 19-Oct 5.759 890 20-Oct 5.739 579 20-Oct 5.721 122 21-Oct 5.700 305
16-Oct 5.742 1,550 19-Oct 5.759 1,610 20-Oct 5.739 1,421 20-Oct 5.720 566 21-Oct 5.700 549
16-Oct 5.742 4,085 19-Oct 5.759 1,670 20-Oct 5.739 385 20-Oct 5.740 3,000 21-Oct 5.701 1,663
19-Oct 5.745 436 19-Oct 5.759 2,500 20-Oct 5.737 1,101 20-Oct 5.740 11,586 21-Oct 5.700 337
19-Oct 5.745 502 19-Oct 5.759 254 20-Oct 5.737 35 20-Oct 5.740 3,000 21-Oct 5.700 22
19-Oct 5.745 14 19-Oct 5.759 896 20-Oct 5.737 844 20-Oct 5.740 19,017 21-Oct 5.700 1,000
19-Oct 5.745 32 19-Oct 5.759 1,604 20-Oct 5.736 86 20-Oct 5.740 19 21-Oct 5.700 566
19-Oct 5.745 16 19-Oct 5.759 1,777 20-Oct 5.736 1,410 20-Oct 5.740 119 21-Oct 5.700 394
19-Oct 5.753 537 19-Oct 5.759 858 20-Oct 5.735 424 20-Oct 5.740 64 21-Oct 5.700 18
19-Oct 5.753 363 19-Oct 5.759 515 20-Oct 5.735 37 20-Oct 5.740 2,798 21-Oct 5.710 88
19-Oct 5.753 273 19-Oct 5.759 309 20-Oct 5.735 69 20-Oct 5.740 397 21-Oct 5.707 395
19-Oct 5.753 900 19-Oct 5.758 1,519 20-Oct 5.735 107 20-Oct 5.745 2,130 21-Oct 5.707 1,577
19-Oct 5.753 900 19-Oct 5.758 364 20-Oct 5.735 1,363 20-Oct 5.745 378 21-Oct 5.707 28
19-Oct 5.753 16 19-Oct 5.758 117 20-Oct 5.736 504 20-Oct 5.745 2,187 21-Oct 5.707 569
19-Oct 5.753 11 19-Oct 5.759 818 20-Oct 5.736 513 20-Oct 5.745 305 21-Oct 5.707 1,000
19-Oct 5.754 1,200 19-Oct 5.759 253 20-Oct 5.740 1,038 20-Oct 5.751 929 21-Oct 5.707 431
19-Oct 5.754 200 19-Oct 5.759 703 20-Oct 5.740 774 20-Oct 5.751 10,446 21-Oct 5.707 48
19-Oct 5.754 45 19-Oct 5.758 28 20-Oct 5.744 2,000 20-Oct 5.751 299 21-Oct 5.707 270
19-Oct 5.754 72 19-Oct 5.758 2,849 20-Oct 5.750 1,145 20-Oct 5.751 47 21-Oct 5.707 1,509
19-Oct 5.750 1,300 19-Oct 5.758 123 20-Oct 5.750 2,000 20-Oct 5.751 3,279 21-Oct 5.707 221
19-Oct 5.738 349 19-Oct 5.759 1,089 20-Oct 5.750 1,122 21-Oct 5.737 11 21-Oct 5.707 353
19-Oct 5.738 151 19-Oct 5.759 708 20-Oct 5.750 948 21-Oct 5.737 1,214 21-Oct 5.707 1,467
19-Oct 5.738 7 19-Oct 5.759 469 20-Oct 5.750 2,052 21-Oct 5.737 93 21-Oct 5.707 180
19-Oct 5.730 2,000 19-Oct 5.759 1,183 20-Oct 5.750 313 21-Oct 5.737 121 21-Oct 5.707 432
19-Oct 5.736 9 19-Oct 5.759 1,132 20-Oct 5.750 1,073 21-Oct 5.720 996 21-Oct 5.707 1,492
19-Oct 5.736 9 19-Oct 5.759 185 20-Oct 5.750 506 21-Oct 5.720 853 21-Oct 5.707 76
19-Oct 5.736 56 19-Oct 5.759 577 20-Oct 5.750 7 21-Oct 5.720 959 21-Oct 5.707 556
19-Oct 5.735 1,000 19-Oct 5.768 3,759 20-Oct 5.750 45 21-Oct 5.720 192 21-Oct 5.707 1,087
19-Oct 5.735 1,191 19-Oct 5.768 6,241 20-Oct 5.750 8 21-Oct 5.717 111 21-Oct 5.707 357
19-Oct 5.735 664 20-Oct 5.750 823 20-Oct 5.740 8 21-Oct 5.717 288 21-Oct 5.707 159
19-Oct 5.735 297 20-Oct 5.750 32 20-Oct 5.740 900 21-Oct 5.717 789 21-Oct 5.707 1,931
19-Oct 5.735 39 20-Oct 5.750 145 20-Oct 5.740 91 21-Oct 5.717 28 21-Oct 5.707 69
19-Oct 5.735 221 20-Oct 5.749 400 20-Oct 5.740 49 21-Oct 5.712 382 21-Oct 5.707 427
19-Oct 5.726 527 20-Oct 5.749 400 20-Oct 5.750 3,000 21-Oct 5.710 450 21-Oct 5.707 278
19-Oct 5.726 1,213 20-Oct 5.749 400 20-Oct 5.741 109 21-Oct 5.710 168 21-Oct 5.715 315
19-Oct 5.735 421 20-Oct 5.749 400 20-Oct 5.741 24 21-Oct 5.710 5,000 21-Oct 5.715 214
19-Oct 5.735 1,579 20-Oct 5.749 81 20-Oct 5.741 871 21-Oct 5.701 784 21-Oct 5.715 651
19-Oct 5.735 3,450 20-Oct 5.749 12 20-Oct 5.741 653 21-Oct 5.710 700 21-Oct 5.713 713
19-Oct 5.732 1,605 20-Oct 5.724 1,000 20-Oct 5.741 900 21-Oct 5.710 700 21-Oct 5.713 1,000
19-Oct 5.732 1,645 20-Oct 5.749 188 20-Oct 5.741 164 21-Oct 5.710 290 21-Oct 5.713 1,511
19-Oct 5.724 283 20-Oct 5.749 119 20-Oct 5.741 160 21-Oct 5.710 271 21-Oct 5.713 221
19-Oct 5.724 120 20-Oct 5.746 392 20-Oct 5.741 49 21-Oct 5.710 251 21-Oct 5.713 439
19-Oct 5.726 1,347 20-Oct 5.716 68 20-Oct 5.741 70 21-Oct 5.700 700 21-Oct 5.710 1,116
19-Oct 5.739 2,000 20-Oct 5.716 604 20-Oct 5.742 305 21-Oct 5.700 320 21-Oct 5.710 384
19-Oct 5.739 2,000 20-Oct 5.716 27 20-Oct 5.742 37 21-Oct 5.700 380 21-Oct 5.710 1,436
19-Oct 5.739 2,000 20-Oct 5.716 500 20-Oct 5.742 263 21-Oct 5.700 72 21-Oct 5.713 266
19-Oct 5.739 2,000 20-Oct 5.716 409 20-Oct 5.742 1,395 21-Oct 5.700 208 21-Oct 5.713 780
19-Oct 5.739 2,000 20-Oct 5.720 780 20-Oct 5.755 790 21-Oct 5.700 366 21-Oct 5.713 825
Date Unit.Price
Quantity
21-Oct 5.713 1,919
21-Oct 5.705 702
21-Oct 5.705 485
21-Oct 5.705 23
21-Oct 5.712 727
21-Oct 5.700 9,273
21-Oct 5.700 10,000

Caxalp, S.G.P.S., Lda. (acquisitions)

Date Unit.Price
Quantity
31-Jul 5.390 40,250
7-Aug 4.970 5,117

Caxalp, S.G.P.S., Lda. (disposals)

Unit.Price
Date Quantity
22-Dec 6.500 7,000
23-Dec 6.450 10,000
23-Dec 6.425 10,000
23-Dec 6.410 10,000
23-Dec 6.410 8,000
28-Dec 6.470 100,000
29-Dec 6.490 12,000
29-Dec 6.495 12,000
29-Dec 6.495 12,000
29-Dec 6.500 10,000
29-Dec 6.485 12,000
29-Dec 6.480 12,000
29-Dec 6.491 15,000
29-Dec 6.495 15,000
29-Dec 6.482 10,000
29-Dec 6.480 10,000
30-Dec 6.486 3,084
30-Dec 6.457 12,000
30-Dec 6.440 10,000
30-Dec 6.450 12,000
30-Dec 6.450 12,000
30-Dec 6.455 12,000
30-Dec 6.440 15,000

Caixa Geral de Depósitos, S.A. (acquisitions)

Date Unit.Price
Quantity Date Unit.Price
Quantidade
26-May 4.774 61 7-Aug 4.936 6.077
26-May 4.775 100 20-Aug 4.996 1.659
26-May 4.775 49 21-Aug 5.100 209
26-May 4.774 61 21-Aug 5.100 714
26-May 4.775 23 21-Aug 5.100 1.456
28-May 4.756 655 21-Aug 5.100 2.500
28-May 4.756 2,987 15-Oct 5.727 828
28-May 4.756 237 15-Oct 5.727 4.723
28-May 4.756 552 26-Oct 5.509 1.633
28-May 4.756 345 26-Oct 5.509 1.991
28-May 4.756 849 26-Oct 5.509 254
28-May 4.756 310
28-May 4.756 380
28-May 4.756 218
28-May 4.756 80
28-May 4.756 676
28-May 4.756 24
28-May 4.756 231
28-May 4.756 89
28-May 4.756 189
28-May 4.756 182
28-May 4.756 113
28-May 4.756 205
28-May 4.756 200
28-May 4.756 130
28-May 4.756 200
28-May 4.756 258
28-May 4.756 29
28-May 4.756 232
28-May 4.756 131
28-May 4.756 11
28-May 4.756 508
28-May 4.756 51
28-May 4.756 112
28-May 4.756 461
28-May 4.756 316
28-May 4.756 949
28-May 4.756 1,000
28-May 4.756 108
28-May 4.756 117
28-May 4.756 1,069
28-May 4.756 31
30-Jul 5.319 374
30-Jul 5.318 1,427
30-Jul 5.319 1,427
30-Jul 5.319 995
30-Jul 5.320 3,003
7-Aug 4.950 797
7-Aug 4.950 773
7-Aug 4.950 430
Aug 4.936 6.077
Aug 4.996 1.659
Aug 5.100 209
Aug 5.100 714
Aug 5.100 1.456
Aug 5.100 2.500
Oct 5.727 828
Oct 5.727 4.723
Oct 5.509 1.633
Oct 5.509 1.991
Oct 5.509 254

Caixa Geral de Depósitos, S.A. (disposals)

Unit.Price
Date Quantity
21-May 4.710 1,659
9-Jun 4.790 1,318
26-Jun 5.080 951
9-Oct 5.661 958
18-Dec 6.048 899
18-Dec 6.048 916
18-Dec 6.048 2,749
18-Dec 6.048 1,140

Parcaixa, SGPS, S.A. (acquisitions)

Date Unit.Price
Quantity Date Unit.Price
Quantity
11-Sep 5,279 217 13- Oct 5,640 1.644
6-Oct 5,490 804 13- Oct 5,640 38
8- Oct 5,645 10 13- Oct 5,640 227
8- Oct 5,645 190 13- Oct 5,640 1.166
8- Oct 5,645 800 13- Oct 5,640 200
8- Oct 5,645 3.938 13- Oct 5,640 99
8- Oct 5,645 1.000 13- Oct 5,640 1.141
8- Oct 5,645 1.000 13- Oct 5,640 1.060
8- Oct 5,645 220 13- Oct 5,640 108
8- Oct 5,645 829 13- Oct 5,640 1.341
8- Oct 5,645 171 13- Oct 5,640 1.051
8- Oct 5,645 1.842 13- Oct 5,640 107
8- Oct 5,620 707 13- Oct 5,640 220
8- Oct 5,620 293 13- Oct 5,640 963
8- Oct 5,620 207 24-Nov 5,265 802
8- Oct 5,620 1.000 24-Nov 5,265 28
8- Oct 5,620 50 24-Nov 5,265 2.170
8- Oct 5,620 324 24-Nov 5,265 420
8- Oct 5,620 626 24-Nov 5,265 1.104
8- Oct 5,620 1.264 24-Nov 5,265 1.896
8- Oct 5,620 1.000 24-Nov 5,265 619
8- Oct 5,620 1.000 24-Nov 5,265 720
8- Oct 5,620 1.000 24-Nov 5,265 1.037
8- Oct 5,620 1.981 24-Nov 5,265 184
8- Oct 5,620 548 24-Nov 5,265 1.020
12- Oct 5,678 2.000 25-Nov 5,256 3.000
12- Oct 5,678 2.194 25-Nov 5,256 7.000
12- Oct 5,678 2.000 3-Dec 5,156 1.350
12- Oct 5,678 2.442 3-Dec 5,156 150
12- Oct 5,678 1.925 3-Dec 5,156 150
12- Oct 5,678 75 3-Dec 5,156 1.000
12- Oct 5,678 1.925 3-Dec 5,156 221
12- Oct 5,678 1.399 3-Dec 5,156 129
12- Oct 5,678 153 3-Dec 5,156 1.500
12- Oct 5,678 2.610 3-Dec 5,156 60
12- Oct 5,678 1.126 3-Dec 5,156 1.350
13-Oct 5,640 163 3-Dec 5,156 150
13- Oct 5,640 2.337 3-Dec 5,156 1.057
13- Oct 5,640 2.529 3-Dec 5,156 443
13- Oct 5,640 1.332 3-Dec 5,156 2.440
13- Oct 5,640 526
13- Oct 5,640 591
13- Oct 5,640 51
13- Oct 5,640 15
13- Oct 5,640 203
13- Oct 5,640 948
13- Oct 5,640 1.248

13- Oct 5,640 101 13- Oct 5,640 243 Caixa-Banco de Investimento, S.A. (acquisitions)

Date Unit.Price
Quantity
19-Aug 4,940 763
19- Aug 4,940 237
19- Aug 4,950 1.000
19- Aug 4,950 1.000
19- Aug 4,947 1.000
19- Aug 4,947 694
19- Aug 4,944 224
19- Aug 4,945 600
19- Aug 4,945 1.482
19- Aug 4,948 851
19- Aug 4,948 149
19- Aug 4,946 361
19- Aug 4,946 439
19- Aug 4,946 800
19- Aug 4,946 413
19- Aug 4,946 387
19- Aug 4,946 306
19- Aug 4,946 294
19- Aug 4,944 1.000
19- Aug 4,944 700
19- Aug 4,944 555
19- Aug 4,944 553
19- Aug 4,944 147
19- Aug 4,944 42
19- Aug 4,944 2
19- Aug 4,944 1

Caixa-Banco de Investimento, S.A. (disposals)

Unit.Price
Date Quantity
24-Aug 5,225 4.000
24-Aug 5,225 743
24-Aug 5,225 4.000
24-Aug 5,225 762
24-Aug 5,225 3.500
24-Aug 5,225 500
24-Aug 5,225 419
24-Aug 5,225 76

REPORT AND OPINION OF THE AUDIT BOARD

STATUTORY AUDITOR'S REPORT AND AUDITOR'S REPORT

Report and Opinion of the Audit Board on the Consolidated Financial Statements for 2009

Dear Shareholders,

As required by current law and in compliance with the articles of association of CIMPOR – Cimentos de Portugal, SGPS, S.A. and the mandate of this governing body, the Audit Board hereby submits its report on the activities and issues its opinion on the consolidated financial statements for 2009, which have been submitted to us for analysis by the Board of Directors.

1. Work of the Audit Board

The Audit Board accompanied the activity and business of the Company and its main subsidiaries in particular by examining accounting documents and records, reading the minutes of meetings of the Board of Directors and its Executive Committee and viewing and analysing other related documents in order to assess compliance with the law and articles of association. The Audit Board also performed tests and other validation and checking procedures, to the level of detail it deemed appropriate in the circumstances.

As part of its work, the Audit Board maintained regular contact with the Executive Committee of the Board of Directors as well as with the Company's various departments, especially the Internal Audit Department. It analysed the activity of this Department and the improvements made, obtaining all necessary information and clarification.

The Audit Board, as required by the articles of association, held monthly meetings, as well as occasional meetings whenever the circumstances imposed. These meetings were separate to the work carried out by each member of the Board as regards the analysis of the documents provided and the monitoring of the work of the Company and its subsidiaries concerning its financial situation and the progress of operations by geographical region and business area, comparing the management forecasting instruments to the performance achieved. It also continuously maintained throughout the financial year elucidative dialogue with the Statutory Auditor, which also performed the role of External Auditor.

The Audit Board also accompanied the process of preparing the consolidated financial statements and it checked the consolidation perimeter.

The Audit Board examined the reports and opinions of the supervisory bodies of the companies located in Portugal falling within the consolidation perimeter, as required by law and the relevant articles of association. As regards the companies based abroad, the Audit Board examined the reports of their auditors describing how such audits were conducted and their conclusions.

2. Consolidated Directors' Report

The Directors' Report presented by the Board of Directors describes, in the manner it has accustomed us, the development of the Cimpor Group in 2009 as well as highlighting the company's main milestones in the financial year just ended.

The consolidated turnover was virtually identical to that of the previous year - which was the highest ever. Sales of physical units of cement and clinker even increased 2.2% on the preceding year as a result of the expansion of the consolidation perimeter, despite the fall in consumption in the markets of Turkey, Portugal, Spain and South Africa. The robust increases in the India, China and Egypt business areas are to be highlighted in this regard.

The growing internationalization of the CIMPOR Group - albeit slower in 2009 - counteracted to a certain extent the severe global economic and financial crisis that began in 2008, and which continues to bring about a very significant drop in cement consumption, especially in Europe and North America. Sale prices have proven, nonetheless, to be considerably resilient to the crisis. Sales of concrete and aggregates, however, slightly declined.

Thus, we can conclude that the Cimpor Group has demonstrated the quality of its assets, fully validating the internationalisation and growth strategy that has been set out. Operating Cash Flow increased 3.3% on the preceding year and Net Profits grew by 5.3%, which generated Earnings per Share of 0.357 euros, 8.3% up on last year.

Capital employed increased by almost 10%, to exceed EUR 3.7 billion, on account of the investments completed in 2009 and the appreciation of some currencies against the euro.

Net Financial Debt reduced by about EUR 160 million during the year, lowering the Net Debt/EBITDA ratio from 3.2 to 2.8.

The difficulties that the crisis generated and still generates, including the access to credit and higher spreads, caused rating agencies to raise the standards required, which led Standard & Poor's to downgrade Cimpor to negative Outlook at the start of the year. The measures that were subsequently taken by the Company had the intended successful outcome and that rating agency raised the Outlook for Cimpor's to stable in September. Furthermore, comparing the performance of the Cimpor Group with its most significant peers, we have to consider it excellent.

The market capitalisation of Cimpor underwent a very appreciable reduction during 2008, due to the tremendous financial instability. From March 2009 the stock markets reversed their downward trend and ended the year registering a substantial recovery of 33.5%. The CIMPOR share price, which recorded 3.00 euros at the end of February, grew thereafter at a rate always above the PSI-20 index and after the preliminary announcement on 18 December of the launch of the takeover bid by the Brazil registered company Companhia Siderúrgica Nacional (CSN), at the price of 5.75 euros, it ended the year at 6.429 euros, which equals a market capitalisation of EUR 4.320 billion. We will comment more extensively this important fact in the following point.

We also emphasize the growing rationalisation of the organisational structure of the Cimpor Group, the pursuit of an active policy of sustainable development and we further highlight the extensive and detailed analysis of the Board of Director's Report on Corporate Governance and the secure and cautious manner in which Cimpor has evolved to comply with the principles of governance currently considered the best.

3. Significant events subsequent to the end of the year

The abovementioned takeover bid – which had to acquire shares equivalent to half the share capital plus one share in order to be successful – would be revised in 2010, which comprised the offer price being raised to 6.18 euros per share and the threshold for success lowered to one-third of the share capital plus one share. The takeover bid ended unsuccessfully on 22 February 2010.

Although unsuccessful, CSN's bid eventually induced two major entities, also Brazilian, – Camargo Corrêa, SA and Votorantin Cimentos, SA – to seek, by other means, a shareholding in Cimpor.

Hence, in February 2010 Caixa Geral de Depósitos, SA and Votorantin Cimentos, SA concluded a shareholders' agreement to establish between the two of them, the former with 9.63% and the latter 21.20%, a shareholder block that would be "cohesive and stable which would contribute to shareholder stability in Cimpor, the sustained development of the company and its continued business independence, with head office in Portugal". Both entities also agreed to restrictions on the sale of their shares for the initial term of ten years.

On the other hand, Camargo Corrêa, SA independently acquired a 28.63% stake in the share capital of Cimpor.

These profound changes in the shareholder structure will necessarily influence the future life of Cimpor. The approaching General Meeting will define the role of new shareholders, which, we hope, will continue to lead Cimpor along its path of success.

Cimpor has since been obliged by the Economic Defence Board (CADE) of Brazil to a commitment of status quo concerning its operations in that country until a final decision by CADE on the competition dilemma of the three companies, two Brazilian and one Portuguese, in the Brazilian market.

Apart from the developments that will result from the new shareholder spectrum, the Board of Directors of Cimpor stresses that the outlook for the world economy in 2010 remains significantly uncertain. The Group must thus seek to gainfully balance the optimism that will be the hallmark of markets such as Egypt, Brazil, China or India, with the difficulties of recovery in Portugal and Spain and even the expected fall in South Africa due to the conclusion of large-scale public works in that country.

4. Consolidated Financial Statements

As part of its duties, the Audit Board analysed the consolidated financial statements, which consist of the consolidated balance sheet as at 31 December 2009, the consolidated profit and loss account, the consolidated statement of recognised income and expense, the consolidated cash flow statement and notes thereto, as prepared by the Board of Directors. This analysis indicated that the accounting standards used in the preparation of and presentation of those statements complied with the International Financial Reporting Standards as adopted by the European Union, in addition to complying with law and the articles of association.

5. Conclusions

The Audit Board has viewed the Statutory Audit Certificate and Audit Report on the consolidated accounts issued by the statutory auditor and it agrees with said documents, which do not express any reservations or emphasis.

In the performance of our duties, we did not detect any infringements of law or the articles of association or any matters that materially affect the true and appropriate picture of the financial situation of the profits and cash flows of the companies included in the consolidation.

The Audit Board wishes to thank the Board of Directors and its Executive Committee in particular, the different managers and other Company personnel with whom it has had the opportunity to come into contact.

In view of the above, the Audit Board issues the following:

6. Opinion

The Consolidated Annual Report, the consolidated balance sheet, consolidated profit and loss accounts, by nature and function, the consolidated cash flow statement and notes thereto, for the financial year of 2009, are in accordance with the applicable accounting standards and requirements of law and the articles of association and therefore meet the conditions for approval by the General Meeting of Shareholders.

Lisbon, 12 April 2010

Ricardo José Minotti da Cruz-Filipe Chairman

Luís Black Freire d'Andrade Member

J. Bastos, C. Sousa Góis & Associados, SROC, Lda., represented by, Jaime de Macedo Santos Bastos Member

Declaration

(pursuant to Article 245(1)c) of the Portuguese Securities' Code)

In so far as we are aware: the information provided for in Article 245(1)a) of the Portuguese Securities' Code was drawn up in conformity with applicable accounting standards, providing an accurate and appropriate image of the assets and liabilities, the financial situation and the profits of CIMPOR – Cimentos de Portugal, SGPS, S.A. and the companies included in the consolidation perimeter (CIMPOR Group); the directors' report provides a faithful account of the evolution of the business, the performance and position of the CIMPOR Group and it contains a description of the main risks and uncertainties facing the Group.

Lisbon, 12 April 2010

The Audit Board

Ricardo José Minotti da Cruz-Filipe Chairman

Luís Black Freire d'Andrade Member

J. Bastos, C. Sousa Góis & Associados, SROC, Lda. represented by, Jaime de Macedo Santos Bastos Member

LEGAL CERTIFICATION OF ACCOUNTS AND AUDITORS' REPORT CONSOLIDATED FINANCIAL STATEMENTS

(Translation of a report originally issued in Portuguese)

Introduction

  1. In compliance with the applicable legislation we hereby present our Legal Certification of Accounts and Auditors' Report on the consolidated financial information contained in the Board of Directors' Report and the accompanying consolidated financial statements of Cimpor – Cimentos de Portugal, SGPS, S.A. ("the Company") for the year ended 31 December 2009, which comprise the consolidated statement of financial position as of 31 December 2009, that presents a total of 4,927,362 thousand Euros and shareholders' equity of 1,922,991 thousand Euros, including a net profit attributable to the shareholders of the Company of 237,025 thousand Euros, the consolidated statements of comprehensive income, changes in shareholders' equity and cash flows for the year then ended and the corresponding notes.

Responsibilities

    1. The Company's Board of Directors is responsible for: (i) the preparation of consolidated financial statements which present a true and fair view of the financial position of the companies included in the consolidation, the consolidated results and the comprehensive income of their operations, the changes in consolidated shareholders'equity and their consolidated cash flows; (ii) the preparation of historical financial information in accordance with International Financial Reporting Standards as adopted by the European Union ("IAS/IFRS") and that is complete, true, timely, clear, objective and licit, as required by the Portuguese Securities Market Code; (iii) the adoption of adequate accounting policies and criteria and the maintenance of appropriate systems of internal control; and (iv) the disclosure of any significant facts that have influenced the operations of the companies included in the consolidation, their financial position or the results and comprehensive income of their operations.
    1. Our responsibility is to audit the financial information contained in the accounting documents referred to above, including verifying that, in all material respects, the information is complete, true, timely, clear, objective and licit, as required by the Portuguese Securities Market Code, and to issue a professional and independent report based on our audit.

Scope

  1. Our audit was performed in accordance with the Auditing Standards ("Normas Técnicas e Directrizes de Revisão/Auditoria") issued by the Portuguese Institute of Statutory Auditors ("Ordem dos Revisores Oficiais de Contas"), which require that the audit be planned and performed with the objective of obtaining reasonable assurance about whether the consolidated financial statements are free of material misstatement. The audit included verifying, on a test basis, evidence supporting the amounts and disclosures in the financial statements and assessing the significant estimates, based on judgements and criteria defined by the Board of Directors, used in their preparation. The audit also included verifying the consolidation procedures, the application of the equity method and that the financial statements of the companies included in the consolidation have been appropriately examined, assessing the adequacy of the accounting policies used, their uniform application and their disclosure, taking into consideration the circumstances, verifying of the applicability of the going concern concept, assessing the adequacy of the overall presentation of the consolidated financial statements and assessing, in all material respects, the consolidated financial information is complete, true, timely, clear, objective and licit. Our examination also included verifying that the consolidated financial information included in the Board of Directors' Report is consistent with the consolidated financial statements. We believe that our audit provides a reasonable basis for expressing our opinion.

Opinion

  1. In our opinion, the consolidated financial statements referred to in paragraph 1 above, present fairly, in all material respects, the consolidated financial position of Cimpor – Cimentos de Portugal, SGPS, S.A. as of 31 December 2009 and the consolidated results and comprehensive income of its operations, the changes on its consolidated shareholders' equity and its consolidated cash flows for the year then ended, in conformity with International Financial Reporting Standards as adopted by the European Union and the information included therein is, under the terms of the definitions contained in the auditing standards referred to in paragraph 4 above, complete, true, timely, clear, objective and licit.

Lisbon, 12 April 2010

______________________________________ Deloitte & Associados, SROC S.A. Represented by João Luís Falua Costa da Silva

(INDIVIDUAL) ANNUAL REPORT AND ACCOUNTS

2009 FINANCIAL YEAR

(Translated from the Portuguese Original)

INDIVIDUAL REPORT AND ACCOUNTS FOR 2009

I – DIRECTORS' REPORT 261
0.
1.
2.
3.
4.
Summary of the Business
Legal Information
Subsequent Events
Outlook for 2010
Proposed Appropriation of Profits
262
262
263
263
263
II – FINANCIAL STATEMENTS OF THE HOLDING COMPANY 265


Balance Sheet for the Years ended 31 December 2009 and 2008
Statements of Profit and Loss for the Years Ended on 31 December 2009 and 2008
Statements Changes in Shareholders' Equity for the Years Ended on 31 December 2009 and
266
267
2008 268
Cash Flows Statements for the Years Ended on 31 December 2009 and 2008 269
Notes to the Financial Statements as at 31 December 2009 271
Report and Opinion of the Audit Board 292
Statutory Audit Certificate and Auditor's Report 294

259

DIRECTORS' REPORT

The Directors' Report on the consolidated operations of CIMPOR – Cimentos de Portugal, SGPS, S.A., covers all aspects relating to both the Governance of the Company and the development of the different business activities of the Group's companies. Shareholders are therefore advised to read this report for further information on these matters.

1. Summary of the Business

The Company's Turnover in individual terms is derived exclusively from providing management services to the Group companies. In 2009 this turnover was approximately EUR 4.548 million euros (around 1% down from the previous year). Operating expenses before depreciation and provisions increased by only 0.8% to approximately EUR 12.3 million.

Gains in group companies and associates (reported through the equity method) are, given the nature of the Company's business operations, its main source of earnings. These gains were EUR 192.2 million in value in 2009 (72% up on the previous year).

Income Tax was negative, approximately EUR 3.5 million, when in 2008 it was negative EUR 51.4 million due to the cancellation of part of a provision for tax risk.

The combined effect of these two important changes generated an increase in net profits for the financial year of 19.4%, raising net profit to about EUR 184 million.

2. Legal Information

The following information is provided in compliance with current legal requirements:

  • No payments to Social Security are in arrears;
  • CIMPOR held 8,476,832 own shares in portfolio at the start of 2009. It disposed of a total of 502,245 shares to its employees during the first half of the year, at an average price of 2.994 euros, under the stock purchase and stock option plans referred to in section III.5 of the Corporate Governance Report:
Date No. Shares Price (EUR) Note
14 May 175,345 3.263 (1)
1 June 326,900 2.850 (2)

(1) Stock purchase plan (2009)

(2) Stock option plan (2009)

As no shares were purchased in 2009, the number of CIMPOR shares in the portfolio at the end of the year was 7,974,587, corresponding to 1.19% of the Company's share capital.

• No other business between the Company and its directors occurred in 2009, besides the disposal of own shares under the stock purchase and stock option plans referred to in sections II.4.2 and III.5 of the Corporate Governance Report.

3. Subsequent Events

No events of special significance took place after the end of 2009, other than those already described in the Directors' Report on the consolidated operations of the CIMPOR Group.

4. Outlook for 2010

CIMPOR views 2010 with some optimism, justified by expectations relative to the expansion of some of the markets in which it operates (Egypt, Brazil, Mozambique, China and India), the greater production capacity as a result of investments recently concluded or concluding in 2010 (Turkey, Brazil and China) and also the impact of cost reductions resulting from the restructuring of the concrete and aggregates areas carried out in 2009 (in Portugal and Spain).

5. Proposed Appropriation of Profits

As reflected in the Financial Statements, the net profit for 2009 amounted to EUR 183,875,459.71 in individual terms.

In accordance with the parameters defined in the Memorandum and Articles of Association and the Company's dividend distribution policy set forth in the Corporate Governance Report, it is proposed that the net profits are appropriated as follows:

  • The sum of EUR 7,235,000.00 to strengthen the Legal Reserve, which is the amount required to ensure that this reserve is equivalent to one-fifth of the share capital;
  • Payment of Bonuses to the directors and other employees who were in the employ of CIMPOR - Cimentos de Portugal, SGPS, S.A., at the end of December 2009, in the amount of no more than EUR 3,000,000;
  • The payment of a gross dividend of 0.20 euros per share to shareholders;
  • Transfer of the remaining balance to Retained Earnings.

Lisbon, 7 April 2010

THE BOARD OF DIRECTORS

Ricardo Manuel Simões Bayão Horta

Luís Eduardo da Silva Barbosa Vicente Árias Mosquera
António Sarmento Gomes Mota José Manuel Baptista Fino
Jorge Humberto Correia Tomé José Enrique Freire Arteta
Jorge Manuel Tavares Salavessa Moura Luís Filipe Sequeira Martins
Manuel Luís Barata de Faria Blanc António Carlos Custódio de Morais Varela
Luís Miguel da Silveira Ribeiro Vaz Pedro Manuel Abecassis Empis

FINANCIAL STATEMENTS OF THE HOLDING COMPANY

BALANCE SHEETS

for the years ended 31 December 2009 and 2008

(Amounts stated in thousand of euros)

(Translation and reformatted from the Portuguese original -- Note 26)

Notes 2009 2008
Non-current assets:
Investments, net 5 1,206,925 1,097,041
Fixed assets, net 6 6,265 6,331
Intangible assets, net 360 540
Other non-current assets, net 4 4 2
Deferred tax 12 282 292
Total non-current assets 1,213,835 1,104,206
Current assets:
Cash and cash equivalents 70,495 616
Accounts receivable-trade, net 3 24 24
Accounts receivable-other, net 3 10,432 12,939
Prepaid expenses and other current assets 9 1,959 325
Total current assets 82,910 13,903
Total assets 1,296,745 1,118,109
Non-current liabilities:
Deferred tax 12 261 274
Provision for other risks and charges 11 54,195 48,584
Total non-current liabilities 54,456 48,858
Current liabilities:
Accounts payable-trade 7 1,013 749
Accounts payable-other 7 859 545
Accrued expenses 8 1,122 1,166
Taxes payable 10 334 2,003
Deferred income 2
Total current liabilities 3,330 4,462
Total liabilities 57,786 53,320
Shareholders' equity:
Share capital 15 672,000 672,000
Treasury shares 15 (39,905) (41,640)
Revaluation reserve 15 1,727 1,769
Legal reserve 15 127,165 119,465
Adjustment in equity investments, other reserves and retained earnings 15 294,096 159,215
Net profit for the year 15 183,875 153,979
Total shareholders' equity 1,238,959 1,064,788
Total liabilities and shareholders' equity 1,296,745 1,118,109

The accompanying notes form an integral part of the financial statements for the year ended 31 December 2009.

STATEMENTS OF PROFIT AND LOSS

for the years ended 31 December 2009 and 2008

(Amounts stated in thousand of euros)

(Translation and reformatted from the Portuguese original -- Note 26)

Notes 2009 2008
Operating income:
Sales and services rendered 13 and 16 4,548 4,600
Other operating income 13 590 665
Reversal of amortisations and adjustments 14 81 48
Total operating income 5,219 5,314
Operating expenses:
Outside supplies and services (4,011) (4,150)
Payroll costs 17 (8,081) (7,986)
Depreciation and amortisation (501) (441)
Provisions 11 (2,340) (2,408)
Other operating expenses (226) (84)
Total operating expenses (15,159) (15,069)
Operating loss (9,940) (9,755)
Financial income, net 18 190,381 112,471
Extraordinary items, net 19 (112) (104)
Income before income tax 180,329 102,612
Income tax 12 3,546 51,366
Net profit for the year 183,875 153,979

The accompanying notes form an integral part of the financial statements for the year ended 31 December 2009.

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

for the years ended 31 December 2009 and 2008

(Amounts stated in thousand of euros)

(Translation and reformatted from the Portuguese original -- Note 26)

Distribution of profits to employees (Note 15)
Earnings allocated to reserves (Note 15)
Balances at 31 December 2007
Dividends (Note 15)
Share
capital
Treasury
shares
Revaluation
reserve
reserve
Legal
investments
Adjustment
in equity
and retained
reserves
earnings
Other
income
for the
period
Net
Total
672,000 (19,927) 1,811 106,900 310,142 14,635 251,284 1,336,845
Purchase/(sale) of treasury shares (Notes 15 and 22)
Adjustments in equity investments (Note 5 and 15)
Balances at 31 December 2008
Net profit for the year
Other adjustments







672,000






(21,713)
(41,640)






(42)
1,769
12,565






119,465





(248,809)
86,622
147,955

722


(86,580)
81,159
1,325
11,261



(93,724)
(154,560)
(3,000)
153,979
153,979
(153,235)
(3,000)
(20,991)
(248,809)
153,979
1,064,788
Purchase/(sale) of treasury shares (Notes 15 and 22)
Adjustments in equity investments (Note 5 and 15)
Distribution of profits to employees (Note 15)
Earnings allocated to reserves (Note 15)
Net profit for the year
Other adjustments
Dividends (Note 15)









1,735








(42)
7,700









113,993

(84,536)


84,578

(200)
19,504
1,543



(27,204)
(124,320)
(2,455)
183,875
(122,777)
(2,455)
1,534
113,993
183,875
Balances at 31 December 2009 672,000 (39,905) 1,727 127,165 177,411 116,685 183,875 1,238,959

CASH FLOW STATEMENTS

for the years ended 31 December 2009 and 2008

(Amounts stated in thousand of euros)

(Translation and reformatted from the Portuguese original -- Note 26)

Notes 2009 2008
Operating activities:
Receipts from clients 54 69
Payments to suppliers (4,056) (4,456)
Payments to employees (9,796) (9,751)
Cash flow generated by operations (13,798) (14,139)
Income tax recovered / (paid) 5,860 6,339
Other receipts relating to operating activities 5,197 5,461
Cash flow before extraordinary items (2,742) (2,338)
Receipts relating to extraordinary items 2
Payments relating to extraordinary items (110) (56)
Cash flow from operating activities (1) (2,852) (2,392)
Investing activities:
Receipts relating to:
Property, plant and equipment 27
Interest and similar income 68 1,239
Dividends 1 196,338 173,170
Loans to Group companies 2 5,500 65,500
201,906 239,935
Payments relating to:
Property, plant and equipment (185) (108)
Loans to Group companies 2 (4,000) (58,500)
(4,185) (58,608)
Cash flow from investing activities (2) 197,721 181,327
Financing activities:
Receipts relating to:
Sale of treasury shares 1,504 4,856
Loans from Group companies 3 1,000 7,488
2,504 12,344
Payments relating to:
Loans obtained (5,000)
Interest and similar costs (3,712) (304)
Dividends (122,777) (153,151)
Purchase of treasury shares (25,586)
Loans from Group companies 3 (1,000) (7,488)
(127,489) (191,528)
Cash flow from financing activities (3) (124,985) (179,184)
Change in cash and cash equivalents (4) = (1)+(2)+(3) 69,884 (250)
Cash and cash equivalents at the beginning of the year 616 857
Effect of currency translation (5) 9
Cash and cash equivalents at the end of the year 4 70,495 616

The accompanying notes form an integral part of the financial statements for the year ended 31 December 2009.

CASH FLOW STATEMENTS (continued)

(Amounts stated in thousand of euros) (Translation and reformatted from the Portuguese original -- Note 26)

1. Dividends received

Amounts received
Cimpor Portugal, SGPS, S.A. 126,249
Cimpor Inversiones, S.A. 70,000
Cement Services Company, S.A.E. 88
Cimpor Egypt for Cement Company, S.A.E. 1
196,338

2. Loans to Group companies

Amounts paid
during the year
Amounts received
during the year
Cimpor - Indústria de Cimentos, S.A. 2,000
Betão Liz, S.A. 4,000 3,500
4,000 5,500

3. Loans from Group companies

during the year during the year
Cimpor Portugal, SGPS, S.A. 1,000 1,000

4. Cash and cash equivalents

In the year ended 31 December 2009, this caption includes current deposits in the amount of 345 thousand euros and a term deposit, in the amount of 70.150 thousand euros, which earns interest at normal market rates and with maturity on 13 January 2010.

5. Other information

  • a) The caption ''Income tax recovered/ (paid)'', includes the receipts payments related to the special regime for taxation of group companies.
  • b) Cimpor -- Cimentos de Portugal, SGPS, S.A. supports financially its subsidiary companies, being those effects reflected on the Company's financial statements.

Notes to the financial statements

For the year ended 31 December 2009 (Amounts stated in thousands of euros) (Translated and reformatted from the Portuguese original -- Note 26)

1. Introduction

Cimpor - Cimentos de Portugal, SGPS, S.A. (''the Company'' or ''Cimpor'') was incorporated on 26 March 1976, as a wholly owned Portuguese Government company. After several privatisation phases, Cimpor is now a public company listed on the Lisbon stock exchange. The Company operates in Portugal, Spain, Morocco, Tunisia, Egypt, Turkey, Brazil, Peru, Mozambique, South Africa, China, India and Cape Verde (''the Cimpor Group'' or ''Group'').

The Company's investments are held essentially through two sub-holding companies; (i) Cimpor Portugal, SGPS, S.A., which holds the investments in companies dedicated to the production of cement, ready mix concrete, concrete parts and related activities in Portugal; and (ii) Cimpor Inversiones, S.L., which holds the investments in companies with head offices abroad.

2. Summary of significant accounting policies

The accompanying financial statements were prepared as a going concern basis from the Company's accounting records.

These financial statements are stated in thousands of euros and were prepared in accordance with generally accepted accounting principles in Portugal (''Portuguese GAAP''), which may be different from generally accepted accounting principles in other countries. The accompanying financial statements also include certain reclassifications in order to conform more closely to the form and content of financial statements presented in international financial markets.

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the report period. Actual results could differ from those estimates.

These financial statements refer to the company on an individual non-consolidated basis, investments being recorded in accordance with the equity method as described below. Under the article 4 of Regulation No.1606/2002 of the European Parliament and the Council of 19 July, the Company presents consolidated financial statements in accordance with International Financial Reporting Standards (''IAS/IFRS'').

The Decree-Law No.158/2009 of 13 June has aproved the new ''Sistema de Normalização Contabilística'' (Accounting Harmonisation System -- ''SNC'') and repealed the ''Plano Oficial de Contabilidade'' (the former Official Accounting Plan -- ''POC''). The application of SNC or the International Financial Reporting Standards is mandatory to the first financial year beginning on or after 1 January 2010 and requires the presentation of comparative information for the year 2009. The Company is still evaluating the accounting impacts of adopting one or another normative, as well as the impact on their capital management policies and dividend distribution.

The principal accounting policies used in the preparation of these financial statements are:

Investments

Investments in group and associated companies are recorded using the equity method of accounting. Such investments being initially recorded at cost which is then increased or reduced to the amount corresponding to the proportion owned of the book value of the equity of these companies as of the date of acquisition of the investment or the date the equity method was first applied.

Whenever necessary in order to conform the financial statements of group and associated companies to the Group's accounting policies, adjustments and reclassifications are made to them.

In accordance with the equity method of accounting, investments are adjusted by the amount corresponding to the Company's share in the net results of the group companies, by corresponding entry to the statement of profit and loss for the year (Note 18), and by other changes in the equity of subsidiary companies, by corresponding entry to the caption ''Adjustments in equity investments'' (Note 15). In addition, dividends received from these companies are recorded as decreases in the value of the investments.

Other investments are stated at cost less, when applicable, adjustments for estimated losses on realisation, except quoted securities measured at fair value, in accordance with the requirements of IAS 39 -- Financial instruments: Recognition and Measurement (''IAS 39'').

Goodwill

Goodwill arises from the difference between the cost of the investments in subsidiary companies and the related fair value of the subsidiaries' net assets as of the date of acquisition. Goodwill resulting from increases in previous investments are amortised on a straight-line basis over the remaining useful live period defined on the first acquisition. Goodwill is capitalised and amortised on a straight-line basis over its estimated realisation period, which varies from five to twenty years.

Intangible assets

This caption consists in the acquired right of an aircraft fraction. Depreciation is provided on a straight-line basis over five years.

Property, plant and equipment

Property, plant and equipment is stated at cost, which includes acquisition expenses or, in the case of certain fixed assets acquired up to 31 December 1992, at restated value computed in accordance with the revaluation criteria established by the applicable Portuguese legislation.

Depreciation is provided on a straight-line basis over the estimated useful lives which correspond to the following estimated average useful lives:

years
Buildings and other constructions 10 50
Basic equipment 7 16
Transportation equipment 4 5
Administrative equipment 3 14

Provisions and adjustments

The provisions and adjustments are recorded at the amounts considered necessary to cover estimated losses.

Foreign currency transactions and balances

Foreign currency assets and liabilities for which there is no fixed exchange rate agreement are translated to euros at the rates of exchange prevailing at the balance sheet date. Exchange differences are credited or charged to the statement of profit and loss in the year in which they arise, except for the following, which are recorded in the balance sheet in the caption ''Adjustments in equity investments'':

  • Exchange differences arising from the translation of medium and long term foreign currency intra group balances which, in practice, correspond to an extension of investments;
  • Exchange differences arising on financial operations hedging exchange risk on foreign currency investments, as established in IAS 21 -- The effects of changes in foreign exchange rates, provided that they comply with the efficiency criteria established in IAS 39.

Cash and cash equivalents

Cash represents immediately available funds and cash equivalents include liquid investments readily convertible to cash with an original maturity of three months or less.

Retirement and healthcare benefits

Certain subsidiary companies have assumed the responsibility for paying additional pensions and healthcare benefits to those paid by the Portuguese Social Security, under two different schemes: a defined benefit plan and a defined contribution plan. The related liabilities are recorded in accordance with Portuguese Accounting Directive 19.

In accordance with this accounting standard, payments made to the defined contribution plan are expensed in the year to which they relate. In the case of the defined benefit plan, costs are expensed over the normal active service life of the employees.

An actuarial valuation is performed at the end of each period in order to calculate the present value of the past service liability and the cost to be recorded in the period.

The effects of those accounting records on these subsidiary companies are reflected on the Company's financial statements by the application of the equity method.

The Company has at its service employees with contractual bond with Cimpor -- Indústria de Cimentos, S.A. (''Cimpor Indústria''), which are beneficiary of retirement and healthcare benefits. The corresponding costs are supported by the Company and recorded as Payroll costs.

Additionally, since 1st January 2008, the Company assumed the compromise of establishing a post-employment benefit plan for its employees (Note 21).

Income tax

Tax on income for the period is calculated based on the taxable results and takes into consideration deferred taxation.

Deferred tax assets and liabilities are calculated and assessed periodically attending to the temporary differences between the assets and liabilities book values and the valid for tax purposes corresponding values, using the rates expected to be in force when the temporary differences reverse and are not subject to discounting.

Deferred tax assets are only recognised when there is reasonable expectation that sufficient taxable profits will exist to use them. A reappraisal of the temporary differences underlying the deferred tax assets is made at the balance sheet date, so as to recognise or adjust them based on the current expectation of their future recovery.

Revaluation reserve

Amounts recorded in this caption, resulting from the net increase in property, plant and equipment through revaluations made in accordance with the defined criteria, are transferred to retained earnings when realised through sale, write-off or depreciation of the related items. In general these amounts are not available for distribution and can only be used to increase share capital or to cover losses incurred up to the end of the period to which the revaluation relates.

Accruals basis

The company records income and expenses on an accruals basis. Under this basis, income and expenses are recorded in the period to which they relate independently of when the corresponding amounts are received or paid. Differences between the amounts received and paid and the related income and expenses are recorded in accrual and deferral captions.

Current classification

Assets to be realised and liabilities to be settled within one year of the balance sheet date are classified as current.

Derivative financial instruments and hedge accounting

The Group has the policy of resorting to financial derivative instruments to hedge the financial risks to which it is exposed as a result of changes in interest rates and exchange rates.

In this respect the Group does not contract derivative financial instruments for speculation purposes.

The Group contract financial derivative instruments in accordance with internal policies set and approved by the Board of Directors.

Financial derivative instruments are measured at fair value. The method of recognising this depends on the nature and purpose of the transaction.

Hedge accounting

Derivative financial instruments are designated as hedging instruments in accordance with the provisions of IAS 39, as regards their documentation and effectiveness.

Changes in the fair value of derivative instruments designated as fair value hedges are recognised as financial income or expense for the period, together with changes in the fair value of the asset or liability subject to the risk.

Changes in the fair value of derivative financial instruments designated as cash flow hedging instruments are recorded in the caption 'Other reserves' as regards their effective component and in financial income or expense for the period as regards their non effective component. The amounts recorded under 'Other reserves' are transferred to the statement of profit and loss in the period in which the effect on the item covered is also reflected in the statement of profit and loss.

Changes in the value of derivative financial instruments hedging net investments in a foreign entity, are recorded in the caption Adjustment in equity investments as regards their effective component. The non effective component of such variations is recognised immediately as financial income or expense for the period. If the hedging instrument is not a derivative, the corresponding variations resulting from changes in the exchange rate are included in the caption Adjustment in equity investments.

Hedge accounting is discontinued when the hedging instrument matures, is sold or exercised, or when the hedging relationship ceases to comply with the requirements of IAS 39.

Trading instruments

Changes in the fair value of derivative financial instruments which are contracted for financial hedging purposes in accordance with the Group's risk management policies, but do not comply with all the requirements of IAS 39 to qualify for hedge accounting, are recorded in the statement of profit and loss for the period in which they occur.

The effects of the recognition of these instruments in the Group companies that contract these instruments, are reflected under the heading of ''Investments, net'', by the application of the equity method.

3. Accounts receivable, net

This caption consists of:

2009 2008
Accounts receivable from affiliated companies (Note 13) 3,701 11,462
Accounts receivable from public entities 6,642 1,363
Other receivables 113 138
10,456 12,962

4. Other non-current assets, net

This caption consists of:

2009 2008
Doubtful accounts receivable 2,894 3,145
Other receivables 613 611
3,506 3,756
Adjustments for doubtful accounts receivable (Note 14) (3,502) (3,754)
4 2

The Company classifies, as doubtful, specific overdue accounts receivable balances from customers. As these balances, together with other balances classified under the caption other receivables, are not fully collectible, the Company records an adjustment for doubtful accounts receivable to cover the estimated loss on their realization.

5. Investments, net

This caption consists of:

2009 2008
Affiliated companies:
Cimpor Inversiones, S.A. 785,528 641,444
Cimpor Portugal, SGPS, S.A. 400,734 438,480
Cimpor Reinsurance, S.A. 13,101 10,855
Cimpor Financial Operations, B.V. 5,114 4,473
Cimpor Tec - Engenharia e Serviços Técnicos de Apoio ao
Grupo, S.A. 2,316 1,573
Cement Services Company, S.A.E. 52 137
Cimpor Egypt For Cement Company, S.A.E. 7 6
1,206,852 1,096,967
Securities and other investments:
Companhia de Cimentos de Moçambique, S.A. 4,050 4,050
Others 73 73
4,123 4,123
Adjustments for investments (4,051) (4,051)
1,206,925 1,097,041

The investments in affiliated companies are recorded in accordance with the equity method of accounting after any adjustment or reclassification to conform the affiliated companies financial statements with the Company's accounting policies. Other participations are stated at cost less, when applicable, adjustments for estimated losses on realization.

The application of the equity method to investments in affiliated companies at 31 December 2009 had the following impact:

Profit in group
companies
(Note 18)
Adjustment in
equity investments
(Note 15)
Dividends Total
Cement Services Company, S.A.E. 7 (4) (88) (85)
Cimpor Egypt for Cement Company, S.A.E. 2 (1)
Cimpor Financial Operations, B.V. 641 641
Cimpor Inversiones, S.A. 99,085 114,998 (70,000) 144,083
Cimpor Portugal, SGPS, S.A. 89,505 (1,001) (126,249) (37,745)
Cimpor Reinsurance, S.A. 2,246 2,246
Cimpor Tec - Engenharia e Serviços
Técnicos de apoio ao Grupo S.A. 744 744
192,229 113,993 (196,338) 109,884

The adjustments in equity investments relating to Cimpor Inversiones include, mainly: (i) the effect of adopting the provisions of IAS 39 related to hedge accounting and derivative financial instruments recognition; and (ii) the effect of translating the foreign currency financial statements of affiliated companies.

6. Fixed assets

This caption comprises the following, at net book value:

Cost: 2009 2008
Land 2,409 2,409
Buildings and other constructions 8,950 8,950
Basic equipment 3,095 3,095
Transportation equipment 630 378
Administrative equipment 4,967 5,346
Fixed assets in progress 2
20,053 20,178
Accumulated depreciation:
Buildings and other constructions (5,703) (5,522)
Basic equipment (3,073) (3,068)
Transportation equipment (361) (226)
Administrative equipment (4,652) (5,031)
(13,788) (13,847)
Net book values:
Land 2,409 2,409
Buildings and other constructions 3,247 3,428
Basic equipment 22 26
Transportation equipment 269 152
Administrative equipment 315 316
Fixed assets in progress 2
6,265 6,331

Property, plant and equipment has been revalued in accordance with Decree Laws 126/77, 219/82, 399-G/84, 118-B/86, 111/88, 49/91, 22/92 and 264/92, and Law 36/91, using price indices established by those legislations.

The effect of the revaluations on net book value is as follows:

Historical Revalued
cost Revaluation amounts
Land 359 2,050 2,409
Buildings and other constructions 807 2,440 3,247
Basic equipment 22 22
Transportation equipment 269 269
Administrative equipment 295 20 315
1,752 4,511 6,263

A portion (40%) of the additional depreciation arising from the revaluations is not deductible for income tax purposes, originating a deferred tax liability of 261 thousand euros (Note 12).

7. Accounts payable

This caption consists of:

2009 2008
Accounts payable to related companies (Note 13) 692 418
Accounts payable to suppliers 1,084 750
Other creditors 97 126
1,872 1,294

8. Accrued expenses

This caption consists of:

2009 2008
Vacation pay and vacation bonus 981 995
Derivative financial instruments (Note 23) 6
Defined contribution plan (Note 21) 17
Other 141 148
1,122 1,166

9. Prepaid expenses and other current assets

This caption consists of:

2009 2008
Derivative financial instruments (Note 23) 6
Insurance 30 33
Interests receivable 14 2
Other 1,915 284
1,959 325

The caption ''Other'' includes 1,796 thousand euros of expenses already incurred relating to future years, under the program of commercial paper, opened on 22 May 2009 (Note 18).

10. Taxes payable

This caption consists of:

2009 2008
Income tax 22 1,698
Withholding tax 125 111
Value added tax 88 91
Social Security contributions 98 103
334 2,003

The income tax payable is the result of the special regime for taxation of groups of companies that Cimpor Group is subject.

11. Movement in the provisions

During the year ended 31 December 2009, the movement in the provision account balances, was as follows:

Beginning
balance
Increases Ending
balance
Provisions for other risks and charges:
Tax provisions
48,553 5,611 54,164
Other risks and charges 31 31
48,584 5,611 54,195

The increases and decreases in the provision for tax contingencies were recorded by corresponding entries to the following captions:

Increases
Provisions 2,340
Tax provisions (Note 12) 3,271
5,611

12. Income tax

The Company is subject to Corporate Income Tax (''CIT'') at the rate of 25%, and municipal surcharge up to 1,5%, which adds to a total tax rate of 26,5%. Gains and losses in associated companies recorded under the equity method are not relevant for tax purposes. The same applies to dividends received from affiliated companies.

As from 2001, the Company and its over 90% held Portuguese subsidiaries are subject to the special regime for taxation of groups of companies (''RETGS''). This regime consists of applying the CIT rate to the consolidated taxable results of the companies included in the special regime plus the municipal surcharge, and excluding profits distributed between those companies. The Company is also subject to autonomous taxation over certain expenses mentioned in article 81 of the CIT Code.

In accordance with current legislation, the Company's tax returns are subject to reviews performed by the tax authorities for a period of four years (for Social Security purposes ten years, until 2000, and five years from 2001), except if there are tax losses computed, tax benefits granted or tax audits, claims or appeals in progress, in which cases the periods can be extended or suspended. At the date of this report, the Company's tax returns were reviewed by the tax authorities up to the tax year of 2007, and the tax audit for 2008 is in course.

As a result of the reviews performed by the tax authorities to the CIT returns for the years of 1996 to 2007, additional adjustments were made to the assessment basis and to tax, determined under the tax consolidation regimes, being the most significant adjustments from the increase of depreciations resulting from the revaluation of property, plant and equipment. The Board of Directors believes, based on the understanding of its tax consultants, that the above mentioned adjustments have no legal basis and therefore they have been legally claimed.

In addition, the Board of Directors believes that any payment of the above tax, resulting from tax assessments up to the tax year of 2001 or subsequent if influenced by operations up to that date, are the responsibility of the ''Fundo de Regularização da Dívida Pública'', Government body.

For the years 1997 and 1998 this subject was sanctioned by the decision of the Chamber of the Supreme Administrative Court, confirmed by plenary of that Chamber, which consequences are the recognition, as always has been defended by the Company, that the payment of the above tax, resulting from additional tax assessments related to these years, it's responsibility of ''Fundo de Regularização da Dívida Pública''.

The Board of Directors believes that the recorded provisions (Note 11) reflect, prudently, the potential risks associated with the probability that the adjustments may result in future payments, including an estimate for the years not yet audited.

Temporary differences between the recognition of income and expenses for accounting and tax purpose are considered in computing the income tax charge for the year.

Reconciliation of the provision for income tax at the statutory Portuguese income tax rate, for the year ended 31 December 2009 and the effective income tax rate, was as follows:

Tax base Income tax
Income before income tax 180,329
Temporary differences 12
Permanent differences (192,793)
(12,452)
Normal charge (3,300)
Tax deductions (125)
Tax adjustments 142
Autonomous taxation 43
(3,240)
Deferred tax on temporary differences reversed in the period (3)
Tax provisions (Note 11) 3,271
Prior year adjustments (260)
Adjustments to the consolidated Group's tax and others (3,315)
(3,546)

Permanent differences include mainly elimination of the effect of applying the equity method (Notes 5 and 18).

The movement in deferred taxes in the year ended 31 December 2009 is as follows:

Beginning Ending
balance Reversal balance
274
8
292 (10) 282
274 (13) 261
284
8
(10)

13. Related parties

The principal balances and transactions in the year ended 31 December 2009 with Group companies were as follows:

Balances
Group Group
companies, companies,
accounts accounts
receivable Accounts Accrued payable
(Note 3) payable expenses (Note 7)
Agrepor Agregados, S.A. 8 7
Betão Liz, S.A. 509 14
Cimpor - Indústria de Cimentos, S.A. 451 6 557
Cimpor Betão - Indústria de Betão Pronto, S.A. 2
Cimpor Finance Limited 39
Cimpor Imobiliária, S.A. 18
Cimpor Internacional, SGPS, S.A. 12
Cimpor Portugal, SGPS, S.A. 2,611 100
Cimpor - Serviços de Apoio à Gestão
de Empresas, S.A. 51 691 13
Cimpor Tec - Engenharia e Serviços
Técnicos de apoio ao Grupo S.A. 2
Imopar, SARL 9
Sacopor - Sociedade de Embalagens
e Sacos de Papel, S.A. 9
3,701 691 25 692

The balance receivable from Betão Liz, S.A. includes 500 thousand euros relating to treasury support, which earns interest at normal market rates.

The balance receivable from Cimpor Portugal, SGPS, S.A. includes: (i) 4,023 thousand euros relating to tax income according to the special regime for taxation of groups of companies (Note 12); (ii) and a tax credit in the amount of 1,412 thousand euros under the ''Sistema de Incentivos Fiscais à Investigação e Desenvolvimento'' (System of Tax Incentives for Research and Development -''SIFIDE'') relating to the year of 2007.

Transactions
Interest
expenses
(Note 18)
Interest
income
(Note 18)
Services
rendered
(Note 16)
Other
operations
income
Outside
supplies
and
serviçes
Agrepor Agregados, S.A. 8 1
Betão Liz, S.A. 8
Cimpor - Indústria de Cimentos, S.A. 11 4,488 63 13
Cimpor Internacional, SGPS, S.A. 60
Cimpor Portugal, SGPS, S.A. 2
Cimpor - Serviços de Apoio à Gestão
de Empresas, S.A.
507 1,745
Cimpor Tec - Engenharia e Serviços
Técnicos de apoio ao Grupo S.A.
3
Sacopor - Sociedade de Embalagens
e Sacos de Papel, S.A. 9
2 19 4,548 590 1,759

14. Movements occurred in the caption of accounts receivable adjustments

During the year ended 31 December 2009, the movement in accounts receivable adjustments was as follows:

Beginning
balance
Utilisation Reversal Ending
balance
Adjustments for:
Doubtful accounts receivable 3,143 (170) (81) 2,892
Other debtors/ shareholders 611 611
3,754 (170) (81) 3,502

15. Share capital and reserves

At 31 December 2009, Cimpor's fully subscribed and paid up share capital consisted of 672 million shares with a nominal value of one euro each.

The last known shareholding structure of the Company, as per notifications of official qualifying shareholders received by the company until 31 December 2009, was as follows (including shares owned by its related companies and its corporate board members):

% Number of
shares
Teixeira Duarte, SGPS, S.A. 22.78 153,096,575
Manuel Fino, SGPS, S.A. 10.67 71,735,460
Lafarge, S.A. 17.28 116,089,705
Banco Comercial Português, S.A. (BCP) and BCP Pension Fund 10.04 67,474,186
Caixa Geral de Depósitos, S.A. 9.62 64,669,794
Bipadosa, S.A. 6.46 43,401,650
Sr. Ten-Cor. Luís Augusto da Silva 3.99 26,814,238
Others 19.16 128,718,392
100.00 672,000,000

Revaluation reserve

This caption results from the revaluation of property, plant and equipment in accordance with the applicable legislation (Note 6). In accordance with current legislation this reserve can only be used to cover losses or to increase share capital.

Legal reserve

In accordance with current legislation the Company must appropriate, to the legal reserve, at least 5% of its annual net profit until the reserve equals a minimum of 20% of capital. This reserve cannot be distributed to the shareholders but can be used to absorb losses once all the other reserves have been used, or to increase capital.

Adjustments in equity investments

This caption, in the year ended 31 December 2009, relate mainly to: (i) transfer from ''Retained earnings'' to ''Adjustments in equity investments'' of the results not distributed by subsidiary companies recorded in accordance with the equity method; (ii) adjustment of investments resulting from changes in the equity of subsidiary companies (Note 5).

Net income application

The net profit for the year ended 31 December 2008, in accordance with a decision of the Shareholders' Annual General Meeting held on 13 May 2009, was appropriated as follows:

Dividends 124,320
Employees' bonus 2,455
Retained earnings 19,504
Legal reserve 7,700
153,979

Undistributed dividends attributed to own shares, in the amount of 1,543 thousand euros, are included on the caption ''Other reserves and retained earnings''.

Treasury shares

Company legislation relating to treasury shares requires the existence of a free reserve equal to the amount of the cost of such shares, which is not available for distribution while the shares are not sold. In addition, the applicable accounting rules require gains and losses on the sale of own shares to be recorded in reserves.

The movement in treasury shares, in the year ended 31 December 2009, corresponds to: (i) the sale of 502,245 shares to several employees of the Group (Note 22) for a total of 1,504 thousand euros, which resulted in a decrease of 200 thousand euros in ''Other reserves and retained earnings''.

At 31 December 2009 Cimpor held 7,974,587 treasury shares (Note 22).

Other reserves

Other reserves are available to be distributed, except the amount of 39,905 thousand euros which became unavailable, according to the commercial law applicable to treasury shares.

16. Services rendered

Services rendered for the year ended 31 December 2009 result from contracts to render management and administrative services entered into with affiliated companies (Note 13).

17. Payroll costs

This caption consists of:

2009 2008
Salaries
Social charges:
6,081 5,900
Pensions 698 150
Others 1,301 1,936
8,081 7,986

In the year ended 31 December 2009, the Company´s corporate board remuneration was as follows:

Fixed Variable
remuneration remuneration Total
Executive directors
Non-executive directors
1,466
682
1,895
3,361
682
2,148 1,895 4,043

18. Financial income, net

This caption consists of:

Income:
56
1,157
Interest income
Gains in Group companies (Note 5)
192,229
111,801
7
13
Foreign exchange gains
192,293
112,971
Expenses:
14
391
Interest expenses
12
4
Foreign exchange losses
1,885
104
Other financial expenses
1,911
500
190,381
112,471
Financial income, net
2009 2008

The caption ''Other financial expenses'' includes 1,808 thousand euros relating to expenses incurred under the program of commercial paper, opened on 22 May 2009 (Note 9).

19. Extraordinary items, net

This caption consists of:

2009 2008
Extraordinary income:
Debt recovery 3 1
Gains on the sale of fixed assets 23
Other extraordinary income 3 38
6 62
Extraordinary expenses:
Donations 56 60
Fines and penalties 5 6
Prior year adjustments 55 86
Other extraordinary expenses 2 14
117 166
Extraordinary items, net (112) (104)

20. Guarantees

At 31 December 2009 the Company had guarantees given to third parties totaling 58,423 thousand euros relating to guarantees given to the tax authorities, to cover additional tax assessments received, which responsibility is considered on the caption of Tax provisions on ''Provisions for other risks and charges'' (Note 11), and a guarantee given to three bank entities, in compliance with the obligations of a loan provided by the European Investment Bank to a subsidiary in the amount of 40,000 thousand euros.

21. Commitments

Retirement pension benefits and medical benefits

As explained in Note 2, some Group companies have supplementary retirement and healthcare plans for their employees. The liability under these plans is reflected in the financial statements as of 31 December 2009 in accordance with the applicable accounting standards.

In the year ended 31 December 2009, Group liabilities with active and retired employees past services, ascend to 98,664 thousand euros, of which 74,186 thousand euros are financed by pension funds, being the remaining in the amount of 24,478 thousand euros, registered in liabilities of the correspondent affiliated companies.

As a result of applying the equity method of accounting, the effect of these plans is reflected in the Company's financial statements in the captions Financial income, and Investments.

As explained in Note 2, the Company additionally supported 501 thousand euros related to retirement and healthcare benefits given to employees with contractual relationship with Cimpor Indústria.

During the year 2008, the Company undertook to establish a Pension Fund, the annual contribution being of 4% of the base remuneration, plus seniority bonus. For this, the Company made contributions to the ''Fundo de Pensões BPI Garantia'' in the amount of 30 thousand euros and 32 thousand euros for the years 2008 and 2009, respectively, and supported an expense of 46 thousand euros in the year ended 2009. Additionally, contributions were made to Retirement Savings Plans in the years ended 2009 and 2008, in the amounts of 151 thousand euros and 133 thousand euros, respectively.

The beneficiaries of this Pension Fund are all the employees with contractual relationship with the Company, equal or exceeding five years, in 1st January 2008 or since that date, except for those that although having a shorter contractual relationship will reach the legal retirement age in the Company.

Other commitments

In accordance with Portuguese Commercial Company Act (''Código das Sociedades Comerciais''), the company Cimpor -- Cimentos de Portugal, SGPS, S.A. is jointly responsible for the obligations of its subsidiaries.

On 1 February 2005 a contract to render administrative, financial, accounting and human resources services was entered into between the Company and Cimpor -- Serviços de Apoio à Gestão de Empresas, S.A.. The contract involves an annual commitment of 1,728 thousand euros.

Comfort letters relating to group companies, given to third parties, are as follows:

Corporacion Noroeste, S.A. 62,742
Cimentos de Moçambique, S.A.R.L. 1,619
64,361

The Company also provides support to Euro Medium Term Notes programs established in the Group.

Various financing instruments include change of control clauses that can even provide for the possibility of early repayment by decision of the creditors, if 51% of the capital is controlled by a single entity or several entities acting in consortium. At 31 December 2009, the debt attributable to financial instruments containing such a clause amounted to 1.1746 billion of euros.

22. Stock option plans

At the Shareholders' General Meeting held on 13 May 2009 an Employee Stock Acquisition Plan (year 2009) and a Cimpor Shares Stock Option Plan (series 2009) were approved.

The Board of Directors of CIMPOR -- Cimentos de Portugal, SGPS, S.A., is responsible for granting the benefits under these plans to other than to its own members; in the members case the benefits are granted by the Remuneration Committee.

The beneficiaries of the Employee Stock Acquisition Plan are granted with the right to acquire shares at a price equal to seventy-five percent of the closing price of the day the transaction is carried out, up to the amount that does not exceed half of his/her monthly gross base remuneration.

The beneficiaries of the Cimpor Shares Stock Option Plan are granted with the right to acquire Cimpor shares (initial options), at a price not lower than seventy-five percent of the average of the closing prices on the sixty stock market sessions preceding that date. For each option exercised, the beneficiary is granted the option to acquire one new share (derivative options), at the same price, in each of the three following years.

The options exercised and the shares bought during the year ended 31 December 2009 were as follows:

Plan Number of
Shares
Unit price Date
Stock Option Plan - series 2009 326,900 2.85 1 June
Employee Stock Acquisition Plan - year 2009 175,345 3.26 14 May
502,245

As at 31 December 2009, the Company held sufficient treasury stock to face the responsibilities inherent to the above mentioned stock options plans.

As at 31 December 2009, as a result of 2009 and previous series, 1,747,130 stock options are open.

23. Financial instruments

The interest rate derivative contract, in which the Company was formal part in 31 December 2008, designed as a trading instrument, reached maturity during the year ended 31 December 2009. On that date the Company was no longer formal part of any financial instrument.

24. Subsequent events

The most significant events that occurred after 31 December 2009 are described in the Directors' Report.

25. Note added for translation

The accompanying financial statements are a reformatted translation of financial statements originally issued in Portuguese in accordance with generally accepted accounting principles in Portugal and the disclosures required by the Portuguese Official Chart of Accounts, some of which may not conform with or be required by generally accepted accounting principles in other countries. In the event of discrepancies the Portuguese language version prevails.

26. Financial statements approval

These financial statements were approved and authorized for issue by the Board of Directors on 7 April 2010, and will be subject to approval at Shareholders´ Annual General Meeting set for 29 April 2010.

The Board of Directors

Prof. Ricardo Manuel Simões Bayão Horta

Dr. Luís Eduardo da Silva Barbosa Dr. Vicente Árias Mosquera Prof. Dr. António Sarmento Gomes Mota José Manuel Baptista Fino Dr. Jorge Humberto Correia Tomé Dr. José Enrique Freire Arteta Eng. Jorge Manuel Tavares Salavessa Moura Eng. Luís Filipe Sequeira Martins Dr. Manuel Luís Barata de Faria Blanc Dr. António Carlos Custódio de Morais Varela Dr. Luís Miguel da Silveira Ribeiro Vaz Dr. Pedro Manuel Abecassis Empis

REPORT AND OPINION OF THE AUDIT BOARD

LEGAL CERTIFICATION OF ACCOUNTS AND AUDITORS' REPORT

Report and Opinion of the Audit Board on the Non-Consolidated Financial Statements for 2009

Dear Shareholders,

As required by current law and in compliance with the articles of association of CIMPOR – Cimentos de Portugal, SGPS, S.A. (the Company) and the mandate of this governing body, the Audit Board hereby submits its report on the activities and issues its opinion on the financial statements for 2009, which have been submitted to us for analysis by the Board of Directors.

The Audit Board accompanied the activity and business of the Company by scrutinizing the accounting documents, records and supporting documentation, examining the minutes of meetings of the Board of Directors and the Executive Committee and viewing and analysing other related documents in order to assess compliance with the law and articles of association in force. The Audit Board also performed tests and other procedures, in as much detail as deemed necessary in the circumstances. It maintained contact with the Board of Directors and other managers, obtaining all necessary information and clarification whenever it requested such.

We examined the Annual Report of the Board of Directors, in the ambit of our duties, and concluded that it complies with legal requirements. Furthermore, we analysed the accounts for the financial year ended on 31 December 2009, which comprise the balance sheet, profit and loss accounts by nature and function, cash flow statement and notes thereto, as drawn up by the Board of Directors, with particular focus on the accounting principles used in their preparation and respective conformity with those generally accepted in Portugal pursuant to current law, as well as compliance with law and the articles of association.

The proposal for the appropriation of profits presented by the Board of Directors complies with applicable legislation and the articles of association.

The Audit Board has viewed the Statutory Audit Certificate issued by the statutory auditor and it agrees with that document.

Accordingly, it is our opinion that the above-stated accounting documents and also the proposal for the appropriation of profits are in accordance with accounting standards and the requirements of law and the articles of association, and therefore they meet the conditions for approval by the shareholders.

The Audit Board wishes to thank the Board of Directors and other employees of CIMPOR - - Cimentos de Portugal, SGPS, S.A. for their cooperation.

Lisbon, 12 April 2010

Ricardo José Minotti da Cruz-Filipe Chairman

Luís Black Freire d'Andrade Member

J. Bastos, C. Sousa Góis & Associados, SROC, Lda., represented by, Jaime de Macedo Santos Bastos Member

LEGAL CERTIFICATION OF ACCOUNTS AND AUDITORS' REPORT

(Translation of a report originally issued in Portuguese)

Introduction

  1. In compliance with the applicable legislation, we hereby present our Legal Certification of Accounts and Auditors' Report on the financial information contained in the Board of Directors' Report and the accompanying financial statements of Cimpor – Cimentos de Portugal, SGPS, S.A. ("the Company") for the year ended 31 December 2009, which comprise the balance sheet as of 31 December 2009, that presents a total of 1,296,745 thousand Euros and shareholders' equity of 1,238,959 thousand Euros, including a net profit of 183,875 thousand Euros, the statements of profit and loss by natures and by functions and the statement of cash flows for the year then ended and the corresponding notes.

Responsibilities

    1. The Company's Board of Directors is responsible for: (i) the preparation of financial statements which present a true and fair view of the financial position of the Company, the results of its operations and its cash flows; (ii) the preparation of historical financial information in accordance with generally accepted accounting principles and that is complete, true, timely, clear, objective and licit, as required by the Portuguese Securities Market Code; (iii) the adoption of adequate accounting policies and criteria and maintenance of an appropriate system of internal control; and (iv) the disclosure of any significant facts that have influenced its operations, financial position or results of operations.
    1. Our responsibility is to examine the financial information contained in the accounting documents referred to above, including verifying that, in all material respects, the information is complete, true, timely, clear, objective and licit, as required by the Portuguese Securities Market Code, and to issue a professional and independent report based on our examination.

Scope

  1. Our examination was performed in accordance with the Auditing Standards ("Normas Técnicas e Directrizes de Revisão/Auditoria") issued by the Portuguese Institute of Statutory Auditors ("Ordem dos Revisores Oficiais de Contas"), which require that the examination be planned and performed with the objective of obtaining reasonable assurance about whether the financial statements are free of material misstatement. The examination included verifying, on a test basis, evidence supporting the amounts and disclosures in the financial statements and assessing the significant estimates, based on judgements and criteria defined by the Board of Directors, used in their preparation. The examination also included assessing the adequacy of the accounting policies used and their disclosure, taking into consideration the circumstances, verifying the applicability of the going concern concept; assessing the adequacy of the overall presentation of the financial statements, and assessing if, in all material respects, the information is complete, true, timely, clear, objective and licit. Our examination also included verifying that the information included in the Board of Directors' Report is consistent with the financial statements. We believe that our examination provides a reasonable basis for expressing our opinion.

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Opinion

  1. In our opinion, the financial statements referred to in paragraph 1 above, present fairly, in all material respects, for the purposes referred to in paragraph 6 below, the financial position of Cimpor – Cimentos de Portugal, SGPS, S.A as of 31 December 2009 and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles in Portugal and the financial information contained therein is, in terms of the definitions included in the auditing standards referred to in paragraph 4 above, complete, true, timely, clear, objective and licit.

Emphasis

  1. The financial statements referred to in paragraph 1 above relate to the Company's on an individual basis and were prepared in accordance with generally accepted accounting principles in Portugal for approval and publication according to the legislation in force. As explained in Note 3 to the financial statements, investments in group and associated companies are accounted for by the equity method. The Company prepared, in accordance with current legislation, consolidated financial statements in conformity with the International Financial Reporting Standards as adopted by the European Union, for separately approval and publication.

Lisbon, 12 April 2010

______________________________________ Deloitte & Associados, SROC S.A. Represented by João Luís Falua Costa da Silva

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