SONAE CAPITAL REPORT AND ACCOUNTS

PART I REPORT OF THE BOARD OF DIRECTORS

CEO'S MESSAGE AND MAIN HIGHLIGHTS "Sonae Capital presented a positive operating performance in the first half of 2018.

We remained focused in the strengthening of our Business Units, both in terms of growth and value creation, closing the semester with an EBITDA margin of 8.7%, approximately 70 basis points above the same period of 2017.

In the real estate business, we fulfilled very significant objectives, especially with the closing of the promissory purchase and sale agreement of UNOP 3, in Tróia, in the amount of 20M€. Also in Tróia, but in the residential touristic units' area, as well as in the remaining assets' area, both the amount of sales deeds signed and the promissory purchase and sale agreements in place continued to evolve in line with expectations.

As a result, on a consolidated basis, turnover kept the positive trend of the previous quarters and reached 92.6M€, 27.8% above the same period of 2017 while, at the same time, the operating profitability grew to 6.7M€, an increase of 21.7% strongly backed by a 40.6% growth in the profitability of the Business Units. In the meantime, we continued investing in our businesses and Capex reached 19.7M€ in the first half of 2018. The operating cash-flow generated, coupled with the level of investment and the dividends distributed in the amount of 15M€, kept debt at a controlled level, and an adequate capital structure when considering the Group's portfolio of businesses and real estate assets held: in which Net Debt to EBITDA stood at 2.8x and Loan-to-Value reached 21.7%.

This semester I end my collaboration with Sonae Capital in the quality of CEO. I truly believe that the path drawn so far, which is anchored in the values that have been part of this Group's DNA for many decades, allowed the creation of a company with a renewed portfolio, a stronger company, always based on the premise that one can not grow and create shareholder value without, at the same time, create economic and social value."

Cláudia Azevedo

"I am very proud to continue to collaborate with Sonae Capital, now as CEO. We believe in the strategy that has been implemented and we will strive to deserve the confidence of our stakeholders, knowing in advance that we count with the adequate resources to face the challenges ahead."

Miguel Gil Mata

Maintenance of the positive trend in Business Units turnover (+29.4%) and improvement of the operating profitability (+40.6%), with the positive contribution of almost all the segments,
namely: ^o Fitness segment, showing a strong turnover and EBITDA performance (growth of
- 54.5% and 94.6%, respectively), backed by organic and non-organic growth; ^o Energy segment, increasing turnover and operating profitability, benefiting with the
- operations acquired in 2017; ^o Hospitality segment, posting a RevPAR increase of 12.6% in 1H18, and an EBITDA of
0.5M€ in 2Q18, 73.1% above 2Q17. EBITDA of Porto Palácio Hotel positive in 1H18; In the Real Estate Business:
^o Troia Resort: (i) PPSA of UNOP 3 in the amount of 20M€ (not yet reflected in 1H18 results); and, (ii) 19 deeds of residential touristic units in Tróia, in the amount of 7.1M€, plus 11 contracts in Reserve / PPSA, for a total amount of 5.2M€, at the date of this
report; ^o Other Real Estate Assets: PPSAs of 4.4M€ in addition to sale and purchase deeds
signed in the amount of 1.2M€, at the date of this report. Operational improvement recorded in the majority of businesses not yet seen in Net results, due to non-recurrent costs in 1H18, including the estimate of the closing of RACE Brazil, and due to
higher Amortizations, consequence of the new operations in the portfolio; Net Debt of 144.4M€, driven by: (i) dividends paid in May 2018 (totalling 15M€); (ii) the payment of a deferred component in the amount of 9M€, related to the acquisitions completed in 2Q17 in the Energy segment; and, (iii) the investments made (amounting to 19.7M€), in which the

acquisition of Pump Fitness chain and the beginning of a biomass-fuelled cogeneration project

development are included; Capital structure under control and adequate when considering the Group's portfolio of

2. OVERALL PERFORMANCE

Consolidated Profit and Loss Account
Million euro	2Q 2018	2Q 2017	D 18/17	1H 2018	1H 2017	D 18/17
Turnover
Business Units	45.69	35.71	+27.9%	84.76	65.52	+29.4%
Energy	13.64	11.58	+17.8%	25.55	21.37	+19.5%
Industrial Engineering	3.03	-	-	6.36	-	-
Fitness	8.80	5.60	+57.1%	17.74	11.48	+54.5%
Hospitality	6.39	5.92	+7.9%	9.25	8.68	+6.5%
Refrigeration & HVAC	11.27	9.91	+13.8%	22.06	20.13	+9.6%
Troia Resort - Operations	2.55	2.70	-5.4%	3.81	3.86	-1.4%
Real Estate Assets	6.14	6.46	-5.1%	10.68	9.91	+7.8%
Troia Resort	3.72	4.42	-15.9%	6.59	5.74	+14.8%
Other Real Estate Assets	2.42	2.04	+18.5%	4.09	4.17	-1.8%
Eliminations & Adjustments	-1.60	-1.73	+7.9%	-2.89	-3.03	+4.7%
Consolidated Turnover	50.23	40.44	+24.2%	92.55	72.40	+27.8%
Other Operational Income	1.18	1.24	-4.2%	1.81	1.90	-4.9%
Total Operational Income	51.42	41.68	+23.4%	94.36	74.30	+27.0%
EBITDA
Business Units	5.35	4.34	+23.3%	7.34	5.22	+40.6%
Energy	3.89	3.58	+8.8%	7.08	5.68	+24.6%
Industrial Engineering	-0.26	-	-	-0.47	-	-
Fitness	1.37	0.41	>100%	2.54	1.30	+94.6%
Hospitality	0.48	0.28	+73.1%	-0.97	-1.22	+21.1%
Refrigeration & HVAC	0.16	-0.28	-	0.09	-0.01	-
Troia Resort - Operations	-0.30	0.35	-	-0.92	-0.53	-73.0%
Real Estate Assets Troia Resort	-0.02 -0.91	1.51 -0.38	- <-100%	0.53 -0.99	2.02 -0.49	-73.9% <-100%
Other Real Estate Assets	0.89	1.89	-52.9%	1.51	2.51	-39.8%
Eliminations & Adjustments	-0.69	-0.72	+3.2%	-1.16	-1.73	+33.1%
Consolidated EBITDA	4.63	5.13	-9.7%	6.71	5.51	+21.7%

Amortization & Depreciation Provisions & Impairment Losses	5.65 -0.05	4.16 0.03	+35.8% -	11.47 0.08	8.23 -0.26	+39.3% -
Non-recurrent costs/income (1)	0.04	-0.16	-	0.72	0.08	>100%

EBIT
Business Units	1.51	2.33	-35.1%	-1.02	0.95	-
Real Estate Assets	-0.87	0.60	-	-2.02	-0.66	<-100%
Eliminations & Adjustments	-1.65	-1.82	+9.6%	-2.53	-2.83	+10.5%
Consolidated EBIT	-1.01	1.10	-	-5.57	-2.54	<-100%
Net Financial Expenses	-0.89	-1.06	+15.9%	-2.00	-2.05	+2.6%
Investment Income and Results from Assoc. Undertakings	0.02	1.93	-98.9%	0.22	2.00	-89.0%
EBT	-1.88	1.96	-	-7.35	-2.59	<-100%
Taxes	-0.29	-0.47	+38.4%	-0.66	-0.75	+11.8%
Net Profit - Continued Businesses	-2.17	1.50	-	-8.00	-3.33	<-100%
Net Profit - Discontinued Businesses	-0.02	-0.58	+95.7%	-2.05	-0.60	<-100%
Net Profit - Total	-2.19	0.92	-	-10.06	-3.93	<-100%
Attributable to Equity Holders of Sonae Capital	-2.46	0.57	-	-9.93	-4.48	<-100%
Attributable to Non-Controlling Interests	0.27	0.34	-21.0%	-0.13	0.55	-

(1) Non-recurrent items mainly related to restructuring costs and one-off income

2.1. PROFIT AND LOSS STATEMENT Business Units' turnover stood at 84.8M€ in 1H18, showing an increase of 29.4% y.o.y.. In the same period, consolidated turnover reached 92.6M€, which represents an increase of 27.8% compared to 1H17, a positive evolution driven by the performance of the Business Units and
the Real Estate business. In 1H18, Business Units' EBITDA grew to 7.3M€, 40.6% above 1H17, equivalent to an EBITDA margin of 8.7%, 0.7pp above the 1H17. The consolidated EBITDA increased 21.7%, to 6.7M€, generating an EBITDA margin of 7.2%, 0.4pp below 1H17, driven mostly by the Real Estate business.
Net results (continued businesses) stood at negative 8.0M€, which represents a decrease of 4.7M€ when compared to the same period of 2017. Notwithstanding the EBITDA increase (+1.2M€), Net Results were primarily impacted by: (i) an increase in Amortization & Depreciation line (+3.2M€), driven by the acquisitions made in Energy and Fitness segments; (ii) non-recurrent costs in the amount of 0.7M€, impacted mostly by staff restructuring costs and an impairment related to a business carried out by RACE Brazil, as reported in 1Q18; and,

(iii) the recognition, in 1H17, of Badwill in the amount of 1.8M€, consequence of the operations

acquired in the Energy segment. Net results (discontinued businesses) show, as already reported, the recognition of costs
related to the discontinuation of RACE's Brazilian operation, in the amount of 2.0M€ Therefore, consolidated net results stood at negative 10.1M€.

Capital Structure/Capex/Ratios
Million euro		Jun 2018 Dec 2017	D 18/17
Net Capital Employed	406.5	400.7	+1.4%

Fixed Assets	328.8	322.6	+1.9%
Non-Current Investments (net)	6.1	8.6	-29.3%
Working Capital	75.1	71.8	+4.5%
Capex (end of period)	19.7	61.6	-68.1%
% Fixed Assets Net Debt	6.0% 144.4	19.1% 109.4	-13.1pp +32.0%

% Net Capital Employed	35.5%	27.3%	+8.2pp
Debt to Equity Capital Structure Ratios	55.1%	37.5%	+17.6pp

Loan to Value (Real Estate) Net Debt/EBITDA (recurrent)	21.7% 2.84x	15.9% 2.57x	+5.8pp +10.5%

Capex stood at 19.7M€ in 1H18, mostly a consequence of the investments made in Fitness segment (acquisition of Pump Fitness chain in the amount of 8.4M€) and in the Energy segment (beginning of the biomass-fuelled cogeneration project development in the amount of 6.4M€).

Levered Free Cash Flow reached negative 20.3M€ at the end of June 2018 (before the payment of dividends), an output of the above-mentioned investments, coupled with the payment of a
deferred component of 9M€, related to the acquisitions made in the Energy segment in 2Q17. Consequence of the Capex registered (19.7M€), the dividends paid, in the amount of 15M€, on May 2018, and the payment of a 9M€ tranche, as previously explained, Net Debt has shown an increase versus the end of 2017, reaching 144.4M€. We continue to maintain an adequate capital structure when considering the Group's portfolio of businesses and real estate assets held: Net
Debt to EBITDA of 2.8% and LTV of 21.7%. Net capital employed increased by 1.4% when compared to the end of 2017, to 406.5M€,
motivated by an increase in fixed assets and working capital. Following the Net Debt and Total Equity evolution, Debt to Equity reached 55.1%, +17.6pp when compared to 2017 year-end.

3. BUSINESS UNITS

3.1. ENERGY

Profit and Loss Account - Energy
Million euro	2Q 2018	2Q 2017	D 18/17	1H 2018	1H 2017	D 18/17

Total Operational Income	14.06	11.66	+20.6%	26.17	21.59	+21.2%
Turnover	13.64	11.58	+17.8%	25.55	21.37	+19.5%
Other Operational Income	0.41	0.08	>100%	0.62	0.22	>100%
Total Operational Costs	-10.16	-8.08	-25.8%	-19.09	-15.91	-20.0%
Cost of Goods Sold	-7.12	-6.09	-17.0%	-13.35	-11.81	-13.0%
External Supplies and Services	-1.58	-1.11	-42.4%	-3.09	-2.43	-27.4%
Staff Costs	-0.75	-0.58	-29.1%	-1.51	-1.17	-29.8%
Other Operational Expenses	-0.72	-0.31	<-100%	-1.14	-0.51	<-100%
EBITDA	3.89	3.58	+8.8%	7.08	5.68	+24.6%
EBITDA Margin (% Turnover)	28.5%	30.9%	-2.4pp	27.7%	26.6%	+1.1pp
EBIT	1.70	2.40	-29.4%	2.58	3.46	-25.4%
EBIT Margin (% Turnover) Capex	12.4% 1.57	20.8% 34.88	-8.3pp -95.5%	10.1% 7.15	16.2% 38.41	-6.1pp -81.4%
EBITDA-Capex	2.32	-31.30	-	-0.08	-32.73	+99.8%
Total Capacity (MW)	65.5	72.5	-9.7%	65.5	72.5	-9.7%

Owned & Operated Operated (not consolidated)	62.3 3.2	62.3 10.2	-0.1% -68.6%	62.3 3.2	62.3 10.2	-0.1% -68.6%

In 1H18, Energy turnover reached 25.6M€, 19.5% above the same period of 2017, much because of the contribution of the operations acquired in 2017, which had a turnover of 5.4M€ in 1H18
(+4.3M€ vs. 1H17). EBITDA stood at 7.1M€, performing a growth of 24.6% y.o.y. and generating an EBITDA margin of 27.7%, +1.1pp above 1H17. It should be highlighted that operating profitability kept the positive trend of the previous quarters, notwithstanding the impact of CO2 prices and the reduced solar resource during the period. The EBITDA contribution of the operations acquired was paramount
for the performance of the semester, reaching 3.0M€ in 1H18 (+2.0M€ vs 1H17). EBIT registered a decrease of 25.4% due to higher Amortization & Depreciation, fully driven by
the operations acquired in 2017. Capex stood at 7.2M€, greatly because of the beginning of the development of a new biomassfuelled cogeneration power plant, announced in 4Q17, which is expected to start operating in
2H19. Currently, all the projects of the segment operate in regulated market. The first project to be carried over the free market corresponds to 10MW (solar energy), which will take place in 2H21.

3.2. INDUSTRIAL ENGINEERING

Profit and Loss Account - Industrial Engineering
Million euro	2Q 2018	2Q 2017	D 18/17	1H 2018	1H 2017	D 18/17

Total Operational Income	3.17	-	-	6.62	-	-
Turnover	3.03	-	-	6.36	-	-
Other Operational Income	0.14	-	-	0.27	-	-
Total Operational Costs	-3.43	-	-	-7.10	-	-
Cost of Goods Sold	-1.82	-	-	-4.01	-	-
External Supplies and Services	-0.56	-	-	-0.93	-	-
Staff Costs	-0.94	-	-	-1.90	-	-
Other Operational Expenses	-0.11	-	-	-0.26	-	-
EBITDA	-0.26	-	-	-0.47	-	-
EBITDA Margin (% Turnover)	-8.4%	-	-	-7.5%	-	-
EBIT	-0.49	-	-	-0.94	-	-
EBIT Margin (% Turnover)	-16.1%	-	-	-14.7%	-	-
Capex EBITDA-Capex	0.19 -0.45	- -	- -	0.44 -0.91	- -	- -

The Industrial Engineering segment includes Adira, a company acquired in July 2017; throughout 1H18, we kept focused in the investment on a structure of adequate and sufficient resources for the implementation with success of the growth strategy set. We would like to stress the recent
achievements in the operational areas. Therefore, 1H18 results are still impacted by the ongoing restructuring process, namely in the
suitability to the processes of the Group. Although not visible in terms of results, the number of machines continued to evolve positively, totalling 88 in 1H18 (42 machines in 1Q18 and 46 machines in 2Q18, respectively). In addition, it
should be noted the positive evolution in orders backlog. This segment's contribution to the consolidated results reached 6.4M€ and negative 0.5M€ at turnover and EBITDA, respectively.

3.3. FITNESS

3.3. FITNESS

Profit and Loss Account - Fitness
Million euro	2Q 2018	2Q 2017	D 18/17	1H 2018	1H 2017	D 18/17
Total Operational Income	9.15	5.65	+62.0%	18.15	11.60	+56.5%

Turnover	8.80	5.60	+57.1%	17.74	11.48	+54.5%
Other Operational Income Total Operational Costs	0.36 -7.78	0.05 -5.24	>100% -48.5%	0.41 -15.61	0.12 -10.29	>100% -51.7%

Cost of Goods Sold	-0.03	-0.04	+27.1%	-0.09	-0.09	-5.3%
External Supplies and Services	-4.63	-3.30	-40.4%	-9.24	-6.27	-47.3%
Staff Costs	-2.80	-1.71	-63.4%	-5.52	-3.44	-60.5%

Profit and Loss Account - Fitness


	The Fitness segment was able to reinforce, once again, its competitive position, and continued to show positive operating and financial results. At the end of 1H18, the consolidation of Solinca
	and Pump operations led the average number of active members to 84,722, more than 70%

	above the same period of 2017. At the same time, turnover in the period grew by 54.5% (which
	include a growth of 1% on average membership fees on a like-for-like basis).

Other Operational Expenses -0.33 -0.19 -70.7% -0.76 -0.50 -52.9% EBITDA 1.37 0.41 >100% 2.54 1.30 +94.6% EBITDA Margin (% Turnover) 15.5% 7.3% +8.3pp 14.3% 11.4% +2.9pp EBIT 0.62 0.13 >100% 0.71 0.57 +25.1% EBIT Margin (% Turnover) 7.1% 2.2% +4.9pp 4.0% 4.9% -0.9pp Capex 1.25 0.45 >100% 10.83 0.98 >100% EBITDA-Capex 0.12 -0.04 - -8.29 0.33 - # Health Clubs in Operation 29 17 +12 29 17 +12

We ended the 1H18 with 29 clubs in operation: 20 Solinca clubs and 9 Pump clubs. Throughout the coming quarters, we will continue working in order to expand our position in the Fitness
market, in both segments. Fitness EBITDA reached 2.5M€ in 1H18, 94.6% above 1H17, generating an EBITDA margin of
14.3%, 2.9pp above 1H17. EBIT stood at 0.7M€, a value that compares with 0.6M€ in 1H17. As previously reported, EBIT in 1H18 was negatively impacted by the registration of an impairment of approximately 0.3M€, driven by the discontinuation of the Crossfit operation in "Cascais", whose profitability was not in line with expectations.

3.4. HOSPITALITY

Profit and Loss Account - Hospitality
Million euro	2Q 2018	2Q 2017	D 18/17	1H 2018	1H 2017	D 18/17
Total Operational Income	6.52	6.04	+7.9%	9.50	8.91	+6.6%

Turnover	6.39	5.92	+7.9%	9.25	8.68	+6.5%
Other Operational Income Total Operational Costs	0.13 -6.04	0.12 -5.77	+8.6% -4.6%	0.25 -10.46	0.23 -10.14	+7.9% -3.2%

Cost of Goods Sold	-0.20	-0.33	+37.5%	-0.71	-0.77	+7.7%
External Supplies and Services	-3.84	-3.58	-7.2%	-6.20	-5.96	-4.0%
Staff Costs	-1.80	-1.68	-7.0%	-3.18	-3.04	-4.9%
Other Operational Expenses EBITDA	-0.20 0.48	-0.19 0.28	-6.5% +73.1%	-0.37 -0.97	-0.37 -1.22	+0.2% +21.1%

EBITDA Margin (% Turnover) EBIT	7.6% 0.38	4.7% 0.18	+2.8pp >100%	-10.4% -1.17	-14.1% -1.41	+3.7pp +16.6%

EBIT Margin (% Turnover) Capex	5.9% 0.37	3.1% 0.27	+2.8pp +36.3%	-12.7% 0.52	-16.2% 0.49	+3.5pp +6.1%
EBITDA-Capex	0.11	0.01	>100%	-1.48	-1.71	+13.4%
# Units	5	5		5	5

In Hospitality, the major operating indicators continued to show a positive evolution. In 1H18, we would like to highlight the growth of 12.6% in consolidated RevPAR, benefiting from the positive
contribution of all units in operation in Porto (Porto Palácio Hotel, The Artist and The House). The performance of the units in operation in Porto was positive in 2Q18, both regarding occupancy rates and room revenues. The operation in Tróia was particularly damaged by the unfavourable weather conditions of the quarter, marked by high rainfall, with impact particularly
in the performance of June (the most relevant month for 2Q18 operation). Turnover increased 6.5% when compared to 1H17, reaching 9.3M€. In the same period, EBITDA grew 21.1%, to negative 1.0M€. On a quarterly basis, EBITDA in 2Q18 was positive and reached 0.5M€, showing a growth of 73.1% versus 2Q17, the quarter in which the operation saw positive EBITDA for the very first time in the second quarter of the year. Hospitality EBITDAR stood at
1.5M€, which represents an improvement of 21.6% when compared to 1H17. Capex remained at a reduced level, totalling 0.5M€ in 1H18, 6.1% above 1H17.

3.5. REFRIGERATION & HVAC

Turnover in 1H18 increased 9.6%, to 22.1M€. Importantly, the volume of contracts in pipeline
reached 21.1M€ at the end of the semester, equivalent to approximately 5 months of activity. EBITDA grew to 0.1M€ in 1H18, which represents a relevant increase when compared to the same period of 2017, driven mostly by a greater focus on Refrigeration, despite the negative effect of the operating margin deterioration in some specific HVAC projects, which were not carried out as planned. It should be noted that the positive performance of the segment in 1H18
was totally driven by the performance in 2Q18. EBIT reached negative 0.3M€, 13.2% below 1H17, driven by the recognition of non-recurrent costs in the amount of 0.4M€, consequence of an impairment related with a business made through RACE Brazil, as disclosed in 1Q18.

3.6. TROIA RESORT - OPERATIONS

Profit and Loss Account - Troia Resort: Operations
Million euro	2Q 2018	2Q 2017	D 18/17	1H 2018	1H 2017	D 18/17
Total Operational Income	2.65	2.99	-11.4%	4.01	4.29	-6.6%

Turnover	2.55	2.70	-5.4%	3.81	3.86	-1.4%
Other Operational Income Total Operational Costs	0.09 -2.95	0.29 -2.64	-67.2% -11.8%	0.20 -4.93	0.43 -4.83	-53.4% -2.2%

Cost of Goods Sold	-0.25	-0.28	+10.3%	-0.33	-0.36	+10.0%
External Supplies and Services	-1.61	-1.28	-25.7%	-2.60	-2.40	-8.3%
Staff Costs	-0.85	-0.97	+12.3%	-1.60	-1.77	+9.5%
Other Operational Expenses EBITDA	-0.23 -0.30	-0.10 0.35	<-100% -	-0.40 -0.92	-0.29 -0.53	-37.6% -73.0%

EBITDA Margin (% Turnover)	-11.7%	13.0%	-24.7pp	-24.3%	-13.8%	-10.4pp
EBIT	-0.80	-0.08	<-100%	-1.87	-1.38	-35.8%
EBIT Margin (% Turnover) Capex	-31.2% 0.21	-3.0% 0.12	-28.3pp +78.9%	-49.2% 0.25	-35.7% 0.15	-13.5pp +65.2%
EBITDA-Capex	-0.51	0.24	-	-1.17	-0.68	-71.3%

This segment includes Atlantic Ferries river transportation and operations such Tróia Marina and
Tróia Market. Turnover generated by Troia Resort operations reached 3.8M€ in 1H18, 1.4% below 1H17. This was caused by a slightly smaller reduction of the activity in the Resort, mostly driven by the
unfavourable weather conditions. Capex remained at controlled levels and was mainly due to investments in the renovation and improvement of Tróia Marina and Atlantic Ferries river transportation.

4. REAL ESTATE ASSETS

Within the Group's current real estate portfolio there are diversified assets with different licensing and construction stages, including land plots with and without construction viability, residential units, construction projects, offices, industrial premises and commercial areas, with wide

geographical dispersion. This block considers all the real estate assets of Sonae Capital Group, as well as the assets held by

the WTC Fund. As of 30 June 2018, the capital employed in this set of real estate assets, excluding touristic residential units in Tróia and WTC Fund, stood at 176.3M€, which compares with 284.0M€, according to valuation made by the independent reference entity Cushman & Wakefield at the
end of 2016. It should be noted that Sonae Capital's real estate assets portfolio (Cushman & Wakefield valuation), including the WTC Fund valuation (as of 30 June 2018), amounted to 427.0M€.

4.1. TROIA RESORT

The PPSA of UNOP 3, although not yet reflected in results, was one of the most important achievements of the real estate assets' unit in Troia Resort in 2Q18. In 1H18, this unit registered a

turnover of 6.6M€, consequence of the following contributions: Signature of 14 deeds of touristic real estate units in 1H18, corresponding to 5.4M€, compared to 11 deeds in the amount of 4.1€ in 1H17. Out of the 14 deeds signed, 9 were made under the
guaranteed income product. Already in 3Q18 and up to the date of this report, 5 additional deeds were signed (in the amount of 1.7M€) and there are still in stock 11 promissory purchase and sale agreements and reserves
totalling 5.2M€. Rents related to the operation of the assets held (Hotels, Tróia Shopping, Car parking lots, Touristic Units in operation) amounted to 1.2M€, in line with the same period of 2017.

4.2. OTHER REAL ESTATE ASSETS

The unit of other real estate assets registered a turnover of 4.1M€, consequence of the following

contributions: ^Signature of deeds in a global amount of 1.2M€ in 1H18, related to various real estate assets.
Already in 3Q18 and up to the date of this report, there is still a group of promissory purchase and sale agreements and reserves in the amount of 4.4M€, providing good prospects for the coming months.

5. BACKUP – CONSOLIDATED BALANCE SHEET

Consolidated Balance Sheet
Million euro		Jun 2018 Dec 2017	D 18/17
Total Assets	522.3	516.1	+1.2%

Tangible and Intangible Assets	276.1	275.3	+0.3%
Goodwill	52.7	47.4	+11.3%
Non-Current Investments	2.2	2.0	+8.9%
Other Non-Current Assets	29.9	34.4	-12.9%
Stocks	91.4	94.4	-3.1%
Trade Debtors and Other Current Assets	58.6	53.0	+10.6%
Cash and Cash Equivalents	9.1	7.3	+24.7%
Assets held for sale Total Equity	2.1 262.1	2.4 291.4	-12.7% -10.0%

Total Equity - Equity Holders of Sonae Capital	252.6	280.5	-9.9%
Total Equity - Non-Controlling Interests Total Liabilities	9.5 260.2	10.9 224.8	-12.9% +15.7%

Non-Current Liabilities	96.6	116.2	-16.9%
Non-Current Borrowings	70.6	88.5	-20.2%
Deferred Tax Liabilities	21.7	21.6	+0.1%
Other Non-Current Liabilities	4.3	6.1	-28.9%
Current Liabilities	163.5	108.6	+50.7%
Current Borrowings	82.9	28.2	>100%
Trade Creditors and Other Current Liabilities	75.0	75.5	-0.7%
Liabilities associated to assets held for sale Total Equity and Liabilities	5.6 522.3	4.8 516.1	+16.8% +1.2%

6. CORPORATE INFORMATION

6.1. CORPORATE INFORMATION 2Q18 On 3 May 2018, the Shareholders' General Meeting of Sonae Capital was held at the company's headquarters. Amongst the proposals presented, it was approved a dividend payment to the

shareholders in the amount of 0.06€ per share. On 15 May 2018, Sonae Capital informed about the date of dividends payment, 30 May 2018.

Dividends' global amount is 15M€. On 28 June 2018, Sonae Capital informed about the execution, through its subsidiary S.I.I. SOBERANA – INVESTIMENTOS IMOBILIÁRIOS, S.A., of a PPSA regarding the real estate asset in Tróia designated in Tróia Detailed Plan as UNOP 3, for the global amount of 20M€ with LAGUNE TROIA, S.A.. The execution of the sale and and purchase deed and the establishment of its respective terms is contingent upon a set of condition precedent that have not yet taken place.

6.2. SUBSEQUENT EVENTS

On 17 July 2018, Efanor Investimentos informed about the intention to appoint Cláudia Azevedo as the next CEO of Sonae, after the end of the present mandate. Subsequently, Cláudia Azevedo asked Sonae Capital Board of Directors to be released from her role as CEO. The Board accepted and has expressed its gratitude for the valuable contribution of Cláudia Azevedo as CEO. Additionally, Sonae Capital Board of Directors agreed to elect Miguel Gil Mata as CEO for the remaining of the current mandate. Cláudia Azevedo will remain as Board member of Sonae Capital, but as a Non-

METHODOLOGICAL NOTES The quarterly consolidated financial information presented in this report is non-audited and has been prepared in accordance with the International Financial Reporting Standards ("IAS / IFRS"), issued by the International Accounting Standards Board ("IASB"), as adopted by the European

With the aim of continuing to provide the best financial information not only at the Consolidated level, but also, at each Business Unit level and aligning with the best market practices, the international operations (Mozambique and Brazil) of the Refrigeration & HVAC segment are considered as assets held for sale and therefore their contribution to the consolidated results is recognized as discontinued operations.

GLOSSARY

Capex = Investment in Tangible and Intangible Assets.
EBITDA = Operational Profit (EBIT) + Amortization and Depreciation + Provisions and Impairment Losses + Impairment Losses of Real Estate Assets in Stocks (included in Costs of Goods Sold) – Reversal of Impairment Losses and Provisions (including in Other
Operation Income). EBITDA, excluding Guaranteed Income Provisions = EBITDA + Provisions related to the estimated present value of potential costs for the full period of the Guaranteed Income from
real estate sales at Troia Resort. EBITDAR = EBITDA + Building Rents.
Gearing: Debt to Equity = Net Debt / Equity.
HVAC = Heating, Ventilation and Air Conditioning.
Loan to Value = Net Debt of real estate assets / Real estate assets Valuation.
Net Debt = Non-Current Loans + Current Loans Cash and Cash Equivalents Current
Investments. Operational Cash Flow = EBITDA - Capex.
PPSA = Promissory Purchase and Sale Agreement.
RevPAR = Revenue Per Available Room.

PART II APPENDIX TO THE REPORT OF THE BOARD OF DIRECTORS

REPORT AND ACCOUNTS – JUNE 2018

Report of the Board of Directors

REPORT AND ACCOUNTS – JUNE 2018 Appendix to the Report of the Board of Directors

Under the terms of Article 245, paragraph 1, c) of the Portuguese Securities Code

(Translation of a Statement originally issued in Portuguese)

The signatories individually declare that, to their knowledge, the Report of the Board of Directors, the Consolidated and Individual Financial Statements and other accounting documents required by law or regulation were prepared in accordance with applicable International Financial Reporting Standards, and give a true and fair view, in all material respects, of the assets and liabilities, financial position and the consolidated and individual results of Sonae Capital, SGPS, SA, and of the companies included in the consolidation perimeter, and that the Report of the Board of Directors faithfully describes major events that occurred during first half 2018 and their impacts, if any, in the business performance and financial position of Sonae Capital, SGPS, SA and of the companies included in the consolidation perimeter, and contains an appropriate description of the major risks and uncertainties that they face.

Maia, 27 July 2018

Maria Cláudia Teixeira de Azevedo

Miguel Jorge Moreira da Cruz Gil Mata

Article 447 of the Portuguese Companies Act and Article 14(7) of the Portuguese Securities Commission (CMVM) Regulation no.5/2008

Disclosure of the number of shares and other securities issued by the Company held and of the transactions executed over such securities, during the financial year in analysis, by the members of the statutory governing and auditing bodies and by people discharging managerial responsibilities ("dirigentes"), as well as by people closely connected with them pursuant to article 248 B of the Portuguese Securities Code:

		Additions			Reductions	Position as at 30.06.2018	Balance as at 30.06.2018
Duarte Paulo Teixeira de Azevedo () (*) Efanor Investimentos, SGPS, SA (1) Migracom, SA (2)	Date	Quantity	Av. Price €	Quantity	Av. Price €	Minority Dominant	Quantity
Maria Cláudia Teixeira de Azevedo () () (**) Efanor Investimentos, SGPS, SA (1) Linhacom, SA (3) Sonae Capital, SGPS, SA	29.03.2018	168 718	0,928			Minority Dominant	449 213
Maria Margarida Carvalhais Teixeira de Azevedo (**) Efanor Investimentos, SGPS, SA (1) Sonae Capital, SGPS, SA						Minority	838 862
Ivone Maria Pinho Teixeira da Silva () (**) Sonae Capital, SGPS, SA	29.03.2018	167 525	0,928				277 595
Álvaro Carmona e Costa Portela (*) Sonae Capital, SGPS, SA Sonae Capital/2014-2019 Bonds							24 942 1
Paulo José Jubilado Soares de Pinho (*) Sonae Capital, SGPS, SA (a) Closely connected person							12 650 8 125
Miguel Jorge Moreira da Cruz Gil Mata () (**)

			Sales		Position as at	Balance as at 30.06.2018
Date	Quantity	Purchases Av. Price €	Quantity	Av. Price €	30.06.2018	Quantity
(1) Efanor Investimentos, SGPS, SA Sonae Capital, SGPS, SA Pareuro, BV (4)					Dominant	88 859 200
(2) Migracom, SA Sonae Capital, SGPS, SA Imparfin - Investimentos e Participações Financeiras, SA (5)					Minority	161 250
(3) Linhacom, SA Sonae Capital, SGPS, SA Imparfin - Investimentos e Participações Financeiras, SA (5)					Minority	43 912
(4) Pareuro, BV Sonae Capital, SGPS, SA						66 600 000
(5) Imparfin - Investimentos e Participações Financeiras, SA Sonae Capital, SGPS, SA						513 160

(*) Member of the Board of Directors of Sonae Capital, SGPS, SA

(**) Member of the Board of Directors of Efanor Investimentos, SGPS, SA (directly and indirectly dominant company) (***) shares acquired in compliance with the annual and medium-term variable remuneration policy

(a) article 248 B, no.4, paragraph b) of the Portuguese Securities Code: held by Change Partners, SCR, SA, of which is Member of the Board of Directors

REPORT AND ACCOUNTS – JUNE 2018 Appendix to the Report of the Board of Directors

Appendix required by Article 448 of the Portuguese Companies Act

Number of shares held by shareholders owning more than 10%, 33% or 50% of the company's share capital:

Number of shares as at 30.06.2018

Efanor Investimentos, SGPS, SA (1)

Sonae Capital, SGPS, SA 88 859 200

Pareuro, BV

Sonae Capital, SGPS, SA 66 600 000

(1) Under the terms and for the purposes of articles 20 and 21 of the Portuguese Securities Code, Efanor ceased to have a controlling shareholder as of 29th November 2017

REPORT AND ACCOUNTS – JUNE 2018 Appendix to the Report of the Board of Directors

Qualified Shareholdings

Shares held and voting rights attributable to shareholders owning more than 2% of the share capital of the Sonae Capital, SGPS, SA, as required by article 8(1)(b) of the Portuguese Securities Market Commission (CMVM) Regulation No. 5/2008:

Shareholder	Nr. of Shares	% of Share Capital	% of Voting Rights
Efanor Investimentos, SGPS, S.A. (1)
Directly Owned	88 859 200	35,544%	36,137%
Through Pareuro, BV (controlled by Efanor)	66 600 000	26,640%	27,085%
Through Maria Margarida Carvalhais Teixeira de Azevedo (Member of the Board of	838 862	0,336%	0,341%
Directors of Efanor) Through Maria Cláudia Teixeira de Azevedo (Member of the Board of Directors of	449 213	0,180%	0,183%
Efanor) Through Linhacom, S.A. (controlled by the Member of the Board of Directors of	43 912	0,018%	0,018%
Efanor Maria Cláudia Teixeira de Azevedo) Through Migracom, S.A. (controlled by the Member of the Board of Directors of	161 250	0,065%	0,066%
Efanor Duarte Paulo Teixeira de Azevedo) Total attributable	156 952 437	62,781%	63,830%

Quaero Capital, SA Total attributable	12 633 330 12 633 330	5,053% 5,053%	5,138% 5,138%

Azvalor Asset Management, SGIIC, SA Total attributable	5 011 941 5 011 941	2,005% 2,005%	2,038% 2,038%

(1) Under the terms and for the purposes of articles 20 and 21 of the Portuguese Securities Code, Efanor ceased to have a controlling shareholder as of 29th November 2017

PART III CONSOLIDATED FINANCIAL STATEMENTS

REPORT AND ACCOUNTS – JUNE 2018

Appendix to the Report of the Board of Directors

(Amounts expressed in euro)

ASSETS		Notes 30/06/2018	31/12/2017
NON-CURRENT ASSETS:
Tangible assets	8	266 688 700	265 431 974
Intangible assets	8	9 439 733	9 822 521
Goodwill	9	52 721 349	47 376 371
Investments in associated companies and joint ventures	5	1 529 008	1 419 028
Other investments	6	646 179	578 430
Deferred tax assets	13	27 611 484	27 774 060
Other non-current debtors Total non-current assets	10	2 824 618 361 461 071	6 601 994 359 004 378

CURRENT ASSETS:
Inventories	11	91 440 262	94 396 634
Trade account receivables and other current assets	12	58 144 238	53 002 698
Cash and cash equivalents Total Current Assets	14	9 108 682 158 693 182	7 307 069 154 706 401
Assets held for sale		2 108 972	2 415 830

TOTAL ASSETS		522 263 225	516 126 609
EQUITY AND LIABILITIES

EQUITY: Share capital			15 250 000 000 250 000 000
Own Shares	15	(1 192 808)	(1 305 839)
Reserves and retained earnings	15	13 698 841	38 273 437
Profit/(Loss) for the year attributable to the equity holders of Sonae Capital		(9 930 558)	(6 513 485)

Equity attributable to the equity holders of Sonae Capital		252 575 475	280 454 113
Equity attributable to non-controlling interests Total Equity	16	9 509 689 262 085 164	10 915 176 291 369 289

NON-CURRENT LIABILITIES:
Loans	17	70 611 121	88 468 498
Other non-current creditors	18	1 254 908	3 015 213
Deferred tax liabilities	13	21 660 389	21 638 983
Provisions	21	3 079 824	3 079 824
Total Non-Current Liabilities		96 606 242	116 202 518
CURRENT LIABILITIES:
Loans	17	82 915 493	28 211 633
Trade creditors and other current liabilities	20	70 699 718	71 146 195
Provisions	21	4 357 837	4 403 401
Total Current Liabilities		157 973 048	103 761 229

TOTAL LIABILITIES		254 579 290	219 963 747
Liabilities associated with assets held for sale		5 598 771	4 793 573
TOTAL EQUITY AND LIABILITIES		522 263 225	516 126 609

The accompanying notes are part of these financial statements.

(Amounts expressed in euro)

		Notes 30/06/2018	30/06/2017 Restated

Sales		33 692 959	39 958 671
Services rendered		53 460 870	29 741 594
Other operating income	22	3 529 384	2 713 407
Cost of sales		(27 383 555)	(23 414 127)
Changes in stocks of finished goods and work in progress		(3 055 767)	(829 526)
External supplies and services		(30 127 990)	(24 370 958)
Staff costs		(20 443 200)	(16 360 405)
Depreciation and amortisation		(11 467 047)	(8 233 962)

Provisions and impairment losses (Increases)/Decreases		(200 038)	182 900
Other operating expenses Operational profit/(loss)		(3 571 434) (5 565 818)	(1 923 753) (2 536 159)

Financial Expenses		48 299	86 012
Financial Income		(2 047 304)	(2 137 696)
Net financial income / (expenses) Profit/(Loss) in associated and jointly controlled companies measured using the	5	(1 999 005) 230 863	(2 051 684) 193 871
equity method Investment income	24	(11 515)	1 808 237
Profit/(Loss) before taxation		(7 345 475)	(2 585 735)
Taxation	25	657 822	745 664
Profit/(Loss) for the year - continued operations		(8 003 297)	(3 331 399)
Profit/(Loss) for the year - discontinued operations		(2 052 482)	(598 884)
Profit/(Loss) for the year	26	(10 055 779)	(3 930 283)

Attributable to: Equity holders of Sonae Capital		(9 930 558)	(4 475 984)
Non-controlling interests	16	(125 221)	545 703
Profit/(Loss) per share - continued operations
Basic	28	(0,031756)	(0,015675)
Diluted	28	(0,031756)	(0,015675)

Profit/(Loss) per share - discontinued operations
Basic Diluted	28 28	(0,008273) (0,008273)	(0,002421) (0,002421)

The accompanying notes are part of these financial statements.

(Amounts expressed in euro)

	2nd Quarter Notes 2018 1	2nd Quarter 2017 1

Sales	9 159 537	27 394 908
Services rendered	37 721 190	10 752 372
Other operating income	2 208 439	1 890 024
Cost of sales	(14 792 805)	(12 432 047)
Changes in stocks of finished goods and work in progress	(1 281 695)	(235 655)
External supplies and services	(16 152 038)	(12 876 265)
Staff costs	(10 220 519)	(8 238 036)
Depreciation and amortisation	(5 654 426)	(4 163 340)
Provisions and impairment losses (Increases)/Decreases	314 807	(17 808)
Other operating expenses	(2 316 461)	(979 536)
Operational profit/(loss)	(1 013 971)	1 094 617
Financial Expenses	(2 271)	28 395
Financial Income	(890 457)	(1 090 466)
Net financial income / (expenses)	(892 728)	(1 062 071)
Profit/(Loss) in associated and jointly controlled companies measured using the	37 461	146 773
equity method Investment income	(16 331)	1 780 641
Profit/(Loss) before taxation	(1 885 569)	1 959 960
Taxation	287 359	466 620

Profit/(Loss) for the year - continued operations Profit/(Loss) for the year - discontinued operations	(2 172 928) (24 955)	1 493 341 (575 381)
Profit/(Loss) for the year	(2 197 883)	917 960
Attributable to:
Equity holders of Sonae Capital	(2 464 186)	573 392
Non-controlling interests	266 303	344 567

The accompanying notes are part of these financial statements.

¹ Prepared in accordance with IAS 34 - Interim Financial Reporting and unaudited

SONAE CAPITAL, SGPS, S.A.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2018 AND 2017
(Amounts expressed in euro)

	30/06/2018	30/06/2017


Consolidated net profit/(loss) for the period	(10 055 779)	(3 930 283)

Items that may be reclassified subsequently to net profit / (loss):

Changes in the currency translation differences	(26 303)	(45 052)

Change in the fair value of cash flow hedging derivatives	-	1 366

Other comprehensive income for the period - continued operations	-	352
Other comprehensive income for the period - discontinued operations	(26 303)	(44 038)

Total comprehensive income for the period	(10 082 082)	(3 973 969)

Attributable to:
Equity holders of Sonae Capital	(9 956 861)	(4 491 595)
Non-controlling interests	(125 222)	517 626

The accompanying notes are part of these financial statements.

SONAE CAPITAL, SGPS, S.A.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE 2ND QUARTER OF 2018 AND 2017 (Amounts expressed in euro)

	2nd Quarter 2018 1	2nd Quarter 2017 1
Consolidated net profit/(loss) for the period	(2 197 883)	917 960
Items that may be reclassified subsequently to net profit / (loss):
Changes in the currency translation differences	(49 894)	24 439
Change in the fair value of cash flow hedging derivatives	-	1 366

Other comprehensive income for the period - continued operations Other comprehensive income for the period - discontinued operations	- (49 894)	4 561 19 878
Total comprehensive income for the period	(2 247 777)	942 399

Attributable to:
Equity holders of Sonae Capital	(2 514 080)	603 573
Non-controlling interests	266 303	338 826

The accompanying notes are part of these financial statements.

¹ Prepared in accordance with IAS 34 - Interim Financial Reporting and unaudited

REPORT AND ACCOUNTS – JUNE 2018 Consolidated Financial Statements

(Amounts expressed in euro)

				Attributable to Equity Holders of Sonae Capital
	Share Capital	Own Shares	Demerger Reserve (Note 15)	Translation Reserves	Fair Value Reserves	Hedging Reserves	Other Reserves	Subtotal	Net Profit/(Loss)	Total	Non Controlling Interests	Total Equity
Balance as at 1 January 2017	250 000 000	(1 404 226)	132 638 253	12 876	-	5 004	(88 414 342)	44 241 791	17 594 199	310 431 764	9 925 965	320 357 729
Total consolidated comprehensive income for the period	-	-	-	(16 975)	-	1 366	-	(15 609)	(4 475 984)	(4 491 593)	517 624	(3 973 969)
Appropriation of profit of 2016:
Transfer to legal reserves and retained earnings	-	-	-	-	-	-	17 594 199	17 594 199	(17 594 199)	-	-	-
Dividends paid	-	-	-	-	-	-	(24 198 866)	(24 198 866)	-	(24 198 866)	(926 710)	(25 125 576)
(Acquisition)/Sales of own shares	-	98 387	-	-	-	-	-	-	-	98 387	-	98 387
Changes in the percentage of capital held in affiliated companies	-	-	-	-	-	-	-	-	-	-	-	-

Other changes Balance as at 30 June 2017	- 250 000 000	- (1 305 839)	- 132 638 253	- (4 099)	- -	- 6 370	525 711 (94 493 298)	525 711 38 147 226	- (4 475 984)	525 711 282 365 403	- 9 516 879	525 711 291 882 282
Balance as at 1 January 2018	250 000 000	(1 305 839)	132 638 253	146 352	-	6 370	(94 517 538)	38 273 437	(6 513 485)	280 454 113	10 915 176	291 369 289
Total consolidated comprehensive income for the period	-	-	-	(26 303)	-	-	-	(26 303)	(9 930 558)	(9 956 861)	(125 222)	(10 082 082)
Appropriation of profit of 2017:
Transfer to legal reserves and retained earnings	-	-	-	-	-	-	(6 513 485)	(6 513 485)	6 513 485	-	-	-
Dividends paid	-	-	-	-	-	-	(14 753 543)	(14 753 543)	-	(14 753 543)	(603 041)	(15 356 584)
(Acquisition)/Sales of own shares	-	113 031	-	-	-	-	-	-	-	113 031	-	113 031
Changes in the percentage of capital held in affiliated companies	-	-	-	-	-	-	(3 846 181)	(3 846 181)	-	(3 846 181)	(677 224)	(4 523 405)
Other changes	-	-	-	-	-	-	564 916	564 916	-	564 916	-	564 916
Balance as at 30 June 2018	250 000 000	(1 192 808)	132 638 253	120 049	-	6 370	(119 065 831)	13 698 841	(9 930 558)	252 575 475	9 509 689	262 085 164

The accompanying notes are part of these financial statements.

(Amounts expressed in euro)

	Notes	30/06/2018	30/06/2017 Restated	nd Quarter 2018 1 2	nd Quarter 2017 1 2

OPERATING ACTIVITIES:
Cash receipts from trade debtors		93 388 628	74 556 202	49 547 760	43 777 127
Cash paid to trade creditors Cash paid to employees		(58 857 193)	(45 966 880)	(27 962 392)	(23 298 240)
		(20 995 220)	(17 276 536)	(11 053 654)	(8 858 780)
Cash flow generated by operations		13 536 215	11 312 786	10 531 714	11 620 107
Income taxes (paid) / received Other cash receipts and (payments) relating to operating		(1 126 858)	(454 666)	(561 758)	(298 075)
activities		(12 017 162)	2 609 939	(9 483 801)	4 029 844
Discontinued operations Net cash from operating activities (1)		(2 514 369)	79 583	(1 575 986)	91 449
		2 906 564	13 388 476	2 062 141	15 260 427
INVESTMENT ACTIVITIES:
Cash receipts arising from:
Investments		656 217	697 913	581 318	617 953
Tangible assets		6 380 279	4 312 788	3 807 744	3 903 775
Subsidies		-	44 209	-	44 198
Interest and similar income		61 499	91 952	18 322	31 427
Dividends		120 883	187 652	120 883	114 074
Others		-	6 392	-	4 944
Changes in consolidation perimeter (companies in)		81 143	2 803 838	-	2 803 838
		7 300 021	8 144 755	4 528 267	7 520 220
Cash Payments arising from:
Investments		(7 595 409)	(28 715 339)	679 258	(27 042 636)
Tangible assets		(14 229 261)	(3 696 759)	(5 891 996)	(2 184 352)
Intangible assets		(1 366 161)	(634 672)	(1 133 810)	(310 592)
Loans granted		-	(33 860)	-	(3 818)
		(23 190 831)	(33 080 630)	(6 346 548)	(29 541 398)
Discontinued operations		(47 479)	2 348	(18 730)	714
Net cash used in investment activities (2)		(15 843 331)	(24 938 223)	(1 799 551)	(22 021 892)
FINANCING ACTIVITIES:
Cash receipts arising from:
Loans obtained
Sale of own shares		49 350 514	45 885 506	28 229 848	43 673 381
		190 012	98 387	190 012	98 387
Cash Payments arising from:		49 540 526	45 983 893	28 419 860	43 771 768
Loans obtained
Interest and similar charges		(14 893 275)	(24 318 548)	(5 788 070)	(2 165 737)
Dividends		(2 134 133)	(2 516 934)	(1 263 222)	(1 705 854)
		(15 089 397)	(24 844 957)	(14 749 893)	(24 844 957)
Discontinued operations		(32 116 805)	(51 680 439)	(21 801 185)	(28 716 548)
Net cash used in financing activities (3)		2 611 772 14 811 949	13 379 (5 709 925)	1 715 083 4 903 592	33 880 15 021 340

Net increase in cash and cash equivalents (4) = (1) + (2) + (3)		1 875 182	(17 259 673)	5 166 182	8 259 875
Effect of foreign exchange rate		-	23 428	-	17 067
Cash and cash equivalents at the beginning of the period	14	7 233 498	32 735 869	2	516 019
Caixa e equivalentes cindidos		-	-	-	-
Cash and cash equivalents at the end of the period	14	9 108 680	15 452 768	5 166 184	8 758 827

The accompanying notes are part of these financial statements.

¹ Prepared in accordance with IAS 34 - Interim Financial Reporting and unaudited

SONAE CAPITAL, SGPS, S.A.

(Translation from the Portuguese Original) (Amounts expressed in euro)

INTRODUCTION SONAE CAPITAL, SGPS, S.A. ("Company", "Group" or "Sonae Capital") whose head-office is at Lugar do Espido, Via Norte, Apartado 3053, 4471-907 Maia, Portugal, is the parent company of a group of companies, as detailed in Notes 4 to 6 ("Sonae Capital Group") and was set up on 14 December 2007 as a result of the demerger of the shareholding in SC, SGPS, S.A. (previously named Sonae Capital, SGPS, S.A.) from Sonae, SGPS, S.A., which was approved by the Board of Directors on 8 November 2007 and by the Shareholder's General Meeting held on 14 December 2007.

Reflecting the current management structure, the reporting segments were revised,

addressing the strategic business areas identified in the Group: Tróia Resort Operations;
Hospitality;
Fitness;
Energy;
Refrigeration & HVAC;
Real Estate;
Industrial Engineering;
Holding & Others.

The non-strategic assets (including non-tourism real estate assets and financial shareholdings) are included in the segment Holding & Others.

MAIN ACCOUNTING POLICIES The main accounting policies adopted are consistent with those used in the financial statements presented for the year ended 31 December 2017.

Basis of preparation Interim financial statements were presented quarterly, in accordance with IAS 34 –

"Interim Financial Reporting". The accompanying consolidated financial statements have been prepared from the books and accounting records of the Company and of its affiliated undertakings (Notes 4 and 6), on a going concern basis and under the historical cost convention, except for

CHANGES IN ACCOUNTING POLICIES Changes to international accounting standards that came into force on or after 1 January 2018, did not have material impacts in the financial statements as at 30 June 2018.

4. GROUP COMPANIES INCLUDED IN THE CONSOLIDATED

FINANCIAL STATEMENTS Group companies included in the consolidated financial statements, their head offices and the percentage of the share capital held by the Group as at 30 June 2018 and 31

						Percentage of capital held
					30 June 2018	31 December 2017
	Company Sonae Capital, SGPS, S.A.		Head Office Maia	Direct Holding	Total Holding	Direct Holding	Total Holding

	Hospitality
	Porto Palácio Hotel, S.A.	a)	Porto	100,00%	100,00%	100,00%	100,00%
	SC Hospitality, SGPS, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	The Artist Porto Hotel & Bistrô - Actividades Hoteleiras, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	The House Ribeira Hotel – Exploração Hoteleira, S.A. Aqualuz Tróia, S.A.	a) a)	Maia Grândola	100,00% 100,00%	100,00% 100,00%	100,00% 100,00%	100,00% 100,00%

	Tróia Resort Operations
	Atlantic Ferries - Tráf. Loc. Flu. e Marít., S.A.	a)	Grândola	95,77%	95,77%	95,77%	95,77%
	Marina de Tróia, S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Tróia Market, S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Tróia Natura, S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Troiaresort-Investimentos Turísticos, S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Troiaresort, SGPS, S.A. Golf Time - Golfe e Invest. Turísticos, S.A.	a) a)	Matosinhos Maia	100,00% 100,00%	100,00% 100,00%	100,00% 100,00%	100,00% 100,00%

	Fitness
3)	Acrobatic Title, S.A.	a)	Lisboa	100,00%	100,00%	10,00%	10,00%
	Solinca - Health & Fitness, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
4)	SC Fitness, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
1) & 8)	Pump, S.A.	a)	Maia	100,00%	100,00%
1) & 12)	About Changes Investimentos, Unipessoal, Lda.	a)	Maia	100,00%	100,00%
1) & 12)	Ineditalchemy, Unipessoal, Lda.	a)	Maia	100,00%	100,00%
1) & 12)	Magnetic Nature, Unipessoal, Lda.	a)	Maia	100,00%	100,00%
1) & 12)	Ocean Destiny, Unipessoal, Lda.	a)	Maia	100,00%	100,00%
1) & 12) 1) & 12)	Questão Magenta, Unipessoal, Lda. Rhtyhmdragon, Unipessoal, Lda.	a) a)	Maia Maia	100,00% 100,00%	100,00% 100,00%
	Energy
	Atelgen - Produção Energia, ACE	a)	Barcelos	51,00%	51,00%	51,00%	51,00%
	CAPWATT – Brainpower, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	CAPWATT – ACE, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Capwatt Colombo - Heat Power, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Capwatt Engenho Novo - Heat Power, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Capwatt Hectare - Heat Power, ACE	a)	Maia	100,00%	100,00%	100,00%	100,00%
13)	Capwatt Évora – Solar Power, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Capwatt III - Heat Power, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
14)	Capwatt IV – Heat Power, Unipessoal, Lda.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Capwatt Maia - Heat Power, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Capwatt Martim Longo - Solar Power, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Capwatt Vale do Caima - Heat Power, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Capwatt Vale do Tejo - Heat Power, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
15)	Capwatt Estuário – Heat Power, Unipessoal, Lda.	a)	Maia	100,00%	100,00%	100,00%	100,00%
16)	Capwatt Lousado – Heat Power, Unipessoal, Lda.	a)	Maia	100,00%	100,00%	100,00%	100,00%
17)	Capwatt Alrota – Wind Power, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%

18)	Capwatt Chamusca – Bio Power, Unipessoal, Lda.	a)	Maia	100,00%	100,00%	100,00%	100,00%
19)	Capwatt Ferreira – Solar Power, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	CAPWATT – SGPS, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Carvemagere - Manutenção e Energias Renováveis, Lda.	a)	Barcelos	65,00%	65,00%	65,00%	65,00%
	Companhia Térmica SERRADO, ACE	a)	Maia	70,00%	70,00%	70,00%	70,00%
	Companhia Térmica Tagol, Lda.	a)	Oeiras	100,00%	100,00%	100,00%	100,00%
	Soternix - Produção de Energia, ACE	a)	Barcelos	51,00%	51,00%	51,00%	51,00%
	Suncoutim - Solar Energy, S.A.	a)	Faro	85,00%	85,00%	85,00%	85,00%
	Sociedade de Iniciativa e Aproveitamentos Florestais - Energia, S.A.	a)	Mangualde	90,00%	90,00%	90,00%	90,00%

	Refrigeration e HVAC
11)	QCE - Desenvolvimento e fabrico de Equipamentos, S.A.	a)	Matosinhos	100,00%	70,00%	100,00%	70,00%
6)	RACE - Refrigeration & Air Conditioning Engineering, S.A.	a)	Matosinhos	100,00%	70,00%	100,00%	70,00%
5)	RACE, SGPS, S.A.	a)	Matosinhos	70,00%	70,00%	70,00%	70,00%
2)	Sistavac Sistemas HVAC - R do Brasil, Ltda.	a)	São Paulo	100,00%	70,00%	100,00%	70,00%
2)	Sopair, S.A. Spinarq Moçambique, Lda.	a) a)	Madrid Maputo	100,00% 70,00%	70,00% 70,00%	100,00% 70,00%	70,00% 70,00%

	Real Estate
	Bloco Q - Soc. Imobil, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Casa da Ribeira - Sociedade Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Centro Residencial da Maia, Urban., S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Cinclus Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Contry Club da Maia - Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Empreend. Imob. Quinta da Azenha, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Fundo Esp. Inv. Imo. Fec. WTC	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Imoclub - Serviços Imobilários, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Imodivor - Sociedade Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Imohotel - Emp. Turist. Imobiliários, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Imoponte - Sociedade Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Imosedas - Imobiliária e Seviços, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Implantação – Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Porturbe - Edifícios e Urbanizações, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Praedium II - Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Prédios Privados Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Predisedas - Predial das Sedas, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Promessa Sociedade Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	SC Assets, SGPS, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Sete e Meio Herdades - Inv. Agr. e Tur., S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Soira - Soc. Imobiliária de Ramalde, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Sótaqua - Soc. de Empreend. Turisticos	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Spinveste - Promoção Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Spinveste - Gestão Imobiliária SGII, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Urbisedas - Imobiliária das Sedas, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Vistas do Freixo - Emp. Tur. Imobiliários, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Soltroia - Imob. de Urb. Turismo de Tróia, S.A.	a)	Lisboa	100,00%	100,00%	100,00%	100,00%
	SII - Soberana Invest. Imobiliários, S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Tulipamar - Expl. Hoteleira Imob., S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Marmagno - Expl. Hoteleira Imob., S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Imopenínsula - Sociedade Imobiliária, S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Imoresort - Sociedade Imobiliária, S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Marvero - Expl. Hotel. Im S.A.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
9)	Andar - Sociedade Imobiliária, S.A.	a)	Maia	100,00%	100,00%	50,00%	50,00%
9)	Sociedade de Construções do Chile, S.A.	a)	Maia	100,00%	100,00%	50,00%	50,00%
9)	Vastgoed One - Sociedade Imobiliária, S.A.	a)	Maia	100,00%	100,00%	50,00%	50,00%
9)	Vastgoed Sun - Sociedade Imobiliária, S.A.	a)	Maia	100,00%	100,00%	50,00%	50,00%

	Industrial Engineering
4) & 7)	SC, INDUSTRIALS, SGPS, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Adira - Metal Forming Solutions, S.A.	a)	Porto	100,00%	100,00%	100,00%	100,00%
	Guimadira - Máquinas e Ferramentas, Lda.	a)	V. N. Gaia	100,00%	100,00%	100,00%	100,00%

	Holding & Others
	Imobeauty, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	SC - Sociedade de Consultadoria, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	SC Finance BV	a)	Amesterdão	100,00%	100,00%	100,00%	100,00%
10)	SC For - Ser. Formação e Desenvolv. Recursos Humanos, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	UP Invest., SGPS, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	SC, SGPS, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Solinfitness - Club Málaga, S.L.	a)	Málaga	100,00%	100,00%	100,00%	100,00%
	Praedium – Serviços, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Inparvi, SGPS, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
10)	Interlog - SGPS, S.A.	a)	Lisboa	98,98%	98,98%	98,98%	98,98%
	Société de Tranchage Isoroy, S.A.S.	a)	Honfleur	100,00%	100,00%	100,00%	100,00%

1) Company acquired during the period in consideration;
2) Discontinued operations;
3) Acquisition of 90% participation during the period in consideration;
4) Transferred from the segment Holding & Others;
5) Ex Sistavac, SGPS, S.A.;
6) Ex Sistavac, S.A.;
7) Ex SC-Eng. e promoção imobiliária, SGPS, S.A.;
8) Ex About, SGPS, S.A.;
9) Acquisition of the remaining 50% participation during the period in consideration;
10) Disposals during the period in consideration;
11) Company merged into RACE Refrigeration & Air Conditioning Engineering, S.A.;
12) Company merged into Pump, S.A.;
13) Ex Capwatt II Heat Power, S.A.;
14) Ex Ronfegen Recursos Energéticos, Lda.;
15) Ex CTE Central Termoeléctrica do Estuário, Lda.;
16) Ex Enerlousado Recursos Energéticos, Lda.;
17) Ex Lusobrisa Produção de Energia Eléctrica, S.A.;
18) Ex Gasflow, Unipessoal, Lda.;
19) Ex Ventos da Serra Produção de Energia S.A.
a) Majority of voting rights.

These group companies are consolidated using the full consolidation method.

5. INVESTMENTS IN ASSOCIATED AND JOINTLY

CONTROLLED COMPANIES Associated and jointly controlled companies included in the consolidated financial statements, their head offices and the percentage of share capital held by the Group as at

	30 June 2018
				Percentage of Capital Held
	Company name	Head Office	Direct	Total	Total Assets	Total Liabilities	Total Costs	Total incomes	Shared Capital	Net income	Balance Value
	Jointly Controlled Companies
	Holding & Others
1)	Andar - Sociedade Imobiliária, S.A.	Maia	-	-	-	-	-	-	-	-	-
1)	Sociedade de Construções do Chile, S.A.	Maia	-	-	-	-	-	-	-	-	-
1)	Vastgoed One - Sociedade Imobiliária, S.A.	Maia	-	-	-	-	-	-	-	-	-
1)	Vastgoed Sun - Sociedade Imobiliária, S.A.	Maia	-	-	-	-	-	-	-	-	-
	Associated Companies
	Holding & Others
	Lidergraf - Artes Gráficas, Lda	Vila do Conde	24,50%	24,50%	18 155 228	10 150 645	10 003 316	10 195 586	8 004 584	192 270	1 195 042
	Energy
2)	Feneralt - Produção de Energia, ACE	Barcelos	25,00%	25,00%	1 547 362	348 322	87 815	743 135	1 199 039	655 320	333 966

1) Companies that beginning from Q2 2018 integrates into Sonae Capital SGPS' consolidation

	31 December 2017
			Percentage of Capital Held
	Company name	Head Office	Direct	Total	Total Assets	Total Liabilities	Total Costs	Total incomes	Shared Capital	Net income	Balance Value
	Jointly Controlled Companies
	Holding & Others
	Andar - Sociedade Imobiliária, SA	Maia	50,00%	50,00%	16 583 257	16 878 185	123 856	1 102	(294 928)	(122 754)	-
1)	Sociedade de Construções do Chile, SA	Maia	100,00%	50,00%	16 548 484	326 238	110 974	2 423 166	16 222 246	2 312 192	-
1)	Vastgoed One - Sociedade Imobiliária, SA	Maia	100,00%	50,00%	12 037 856	976	1 084	-	12 036 880	(1 084)	-
1)	Vastgoed Sun - Sociedade Imobiliária, SA	Maia	100,00%	50,00%	12 042 540	976	1 079	-	12 041 564	(1 079)	-
	Associated Companies
	Holding & Others
	Lidergraf - Artes Gráficas, Lda	Vila do Conde	24,50%	24,50%	18 533 396		10 335 157 20 515 836	21 812 819	8 198 240		1 296 983 1 276 788
	Energy
	Feneralt - Produção de Energia, ACE	Barcelos	25,00%	25,00%	818 220	167 923	1 407 770	2 053 857	650 297	646 087	142 240
	0	0	0	0
								76 563 753 27 709 455 22 160 599 26 290 944 48 854 299 4 130 345			1 419 028

1) Null investment values result from the adoption of the equity method in Andar – Sociedade Imobiliária, S.A., holder of all of these investments.

Associated and jointly controlled companies are consolidated using the equity method.

The balance values of zero result from the reduction in the acquisition cost by application of the equity method, discontinuing the recognition of its part of additional losses under

During the periods ended 30 June 2018 and December 2017, movements in investments of associated and jointly controlled companies may be summarized as follows:

	30 June 2018	31 December 2017

Opening balance as at 1 January	1 419 028	1 266 842
Disposals in the period	-	(31 948)
Equity method Dividends received	230 863 (120 883)	391 017 (206 883)
Closing balance as at 30 June	1 529 008	1 419 028

The use of the equity method had the following impacts: 230,863€ recorded on share of results of associated undertakings (391,017€ at 31 December 2017).

OTHER INVESTMENTS Group companies, jointly controlled companies and associated companies excluded from consolidation, their head offices, the percentage of share capital held and book value as at

			Percentage of capital held
Company	Head Office	30 June 2018 Direct	Total	31 December 2017 Direct	Total	30 June	Book value 31 December
						2018	2017

Tróia Resort Operations
Infratróia - Infraestruras de Tróia, E.M.	Grândola	25,90%	25,90%	25,90%	25,90%	64 750	64 747

Holding & Others
Fundo de Investimento Imobiliário Imosonae Dois	Maia	-	-	0,06%	0,06%	-	-
Net, S.A.	Lisbon	0,98%	0,98%	0,98%	0,98%	23 034	23 034
Fundo de Capital de Risco F-HITEC	Lisbon	6,48%	6,48%	6,48%	6,48%	250 950	250 950
Outros Investimentos		-	-	-	-	307 445	239 699
Total						632 974	578 430

	30 June 2018		31 December 2017
	Non-current			Current
Investments at acquisition cost		Current	Non-current
Opening balance as at 1 January	870 268	-	770 693	-
Acquisitions in the period	115 530	-	46 214	-
Disposals in the period	(57 439)	-	(57 684)	-
Transfers	-	-	134	-
Changes in consolidation perimeter	(1 029)	-	110 911	-
Closing balance end of period	938 017	-	870 268	-
Accumulated impairment losses (Note 21)	(291 838)	-	(291 838)	-
Other Investments	646 179	-	578 430	-

7. CHANGES TO THE CONSOLIDATION PERIMETER

During the period ended 30 June 2018 the following companies were acquired:

		Percentage of capital held
Company	Head Office	Direct	Total


About, SGPS, S.A.	Maia	100,00%	100,00%
About Changes Investimentos, Unipessoal, Lda.	Maia	100,00%	100,00%
Ineditalchemy Unipessoal, Lda.	Maia	100,00%	100,00%
Magnetic Nature, Unipessoal, Lda.	Maia	100,00%	100,00%
Ocean Destiny, Unip. Lda.	Maia	100,00%	100,00%
Questão Magenta, Unipessoal, Lda.	Maia	100,00%	100,00%
Rhtyhmdragon, Unipessoal, Lda.	Maia	100,00%	100,00%
Andar - Sociedade Imobiliária, S.A.	Maia	100,00%	100,00%
Sociedade de Construções do Chile, S.A.	Maia	100,00%	100,00%
Vastgoed One - Sociedade Imobiliária, S.A. Vastgoed Sun - Sociedade Imobiliária, S.A.	Maia Maia	100,00% 100,00%	100,00% 100,00%

During 2018 the remaining 50% participation of the Andar Group was acquired, thus, gaining full control of the entities.

Impacts in the consolidated financial statements at the inclusion date were as follows:

	Acquisition date	30 June 2018

Net assets acquired
Tangible and intangible assets (Note 8)	5 246 221	5 851 913
Financial investments	20 371	12 214
Other assets	750 853	582 683
Cash and cash equivalents	78 339	522 069
Other liabilities	(4 048 181)	(4 380 212)
	2 047 603	2 588 667
Total equity	2 047 603

	Acquisition date	30 June 2018
Income statements from the acquired companies
Cost of sales External supplies and services	- 13 240	24 923 1 716 341

Staff costs	-	909 109
Depreciation and amortisation	-	427 367
Other operating expenses	-	189 547
Operational expenses	13 240	3 267 286
Sales	-	82 344
Services rendered	-	3 572 899
Other operating income	196	348 306
Operational income	196	4 003 549
Operational profit/(loss)	(13 044)	736 262
Financial income	6	8 045
Financial expenses	12 684	50 772
Net financial income / (expenses)	(12 678)	(42 727)
Profit/(Loss) before taxation	(25 722)	693 535
Taxation Profit/(Loss) for the year	- (25 722)	(181 760) 511 776


Acquisition price Payments made	6 404 463 1 919 736

Net cash flow from the acquisition
Payments made	8 324 198
Cash and equivalents acquired	(89 059)

8 235 139

During the six-month period ended 30 June 2018, movements in tangible and intangible fixed assets as well as in amortisation and accumulated impairment losses, are made up as

	Tangible Assets
	Land and Natural Resources	Buildings and Other Constructions	Plant and Machinery	Vehicles	Fixtures and Fittings	Others	Tangible Assets in progress	Total Tangible Assets
Gross Cost:
Opening balance as at 1 January 2018	49 859 173	155 688 594	285 701 503	1 244 107	4 055 064	4 795 793	6 548 831	507 893 064
Changes in consolidation perimeter (companies in)	-	5 299 212	1 380 771	77 390	270 461	61 567	48 505	7 137 906
Capital expenditure	214 962	75 067	1 649 409	-	-	73 594	10 702 398	12 715 430
Disposals	(1 224 128)	(3 224 669)	(3 859 965)	(73 000)	(10 441)	(39 842)	-	(8 432 046)
Exchange rate effect	-	-	(2 209)	205	(4 330)	(6 866)	-	(13 201)
Transfers	16 433	25 424	4 968 450	(205)	253 658	116 297	(5 412 318)	(32 261)
Closing balance as at 30 June 2018	48 866 441	157 863 629	289 837 958	1 248 497	4 564 411	5 000 542	11 887 415	519 268 893
Accumulated depreciation			-
Opening balance as at 1 January 2018	-	43 580 976	157 597 181	1 070 247	3 303 302	2 274 539	-	207 826 244
Changes in consolidation perimeter (companies in)	-	1 309 434	448 713	11 869	154 584	52 384	-	1 976 984
Changes in consolidation perimeter (companies out)	-	-	19 245	-	19 101	33 759	-	72 105
Charges for the period	-	1 615 273	9 367 603	22 196	140 807	84 936	-	11 230 814
Disposals	-	(1 005 792)	(1 462 001)	(9 125)	(5 103)	(38 583)	-	(2 520 604)
Exchange rate effect	-	-	(1 848)	242	(4 175)	(4 388)	-	(10 170)
Transfers	-	-	(9 812)	(1 283)	3 832	2 457	-	(4 806)
Closing balance as at 30 June 2018	-	45 499 891	165 920 591	1 094 145	3 574 146	2 337 585	-	218 426 357

Accumulated impairment losses Opening balance as at 1 January 2018	6 000 391	23 414 766	5 219 689	-	-	-	-	34 634 846
Charges for the period	4 086	8 277	1 303	-	-	-	-	13 666
Reversals for the period	(185 412)	(233 702)	(75 562)	-	-	-	-	(494 676)
Closing balance as at 30 June 2018	5 819 064	23 189 342	5 145 430	-	-	-	-	34 153 837
Carrying amount
As at 1 January 2018	43 858 783	88 692 851	122 884 633	173 860	751 762	2 521 253	6 548 831	265 431 974
As at 30 June 2018	43 047 377	89 174 396	118 771 937	154 352	990 266	2 662 957	11 887 415	266 688 700

The most significant values included in the caption Tangible assets in progress, refer to the following projects:

	30 June 2018	31 December 2017

Tróia Resort	1 842 012	1 671 835
Marina Troia	199 834	187 465
Industrial plants reconstruction / remodeling and project management	7 451 339	2 240 148
Remodeling / New Health Club Openings	1 055 491	1 280 759
Industrial EngIneering	1 133 515	1 112 976
Others	205 224	55 647
	11 887 415	6 548 830

The increase seen in the item Industrial plants reconstruction / remodelling and project management refers mainly to the Energy segment in relation to the reconstruction of the factory in Mangualde and other projects in progress.

During the six-month period ended 30 June 2018, intangible fixed assets as well as in amortisation and accumulated impairment losses, are made up as follows:

	Intangible Assets
	Patents and other similar rights	Software	Others	Intangible Assets in progress	Total Intangible Assets
Gross Cost:
Opening balance as at 1 January 2018	9 336 173	4 819 214	4 004 093	1 519 682	19 679 162
Changes in consolidation perimeter (companies in)	-	-	19 790	-	19 790
Capital expenditure	-	-	997 022	458 721	1 455 744
Disposals	(162 029)	-	-	-	(162 029)
Exchange rate effect	-	(2 435)	-	-	(2 435)
Transfers	5 883	211 134	(1 144 731)	(171 296)	(1 099 010)
Closing balance as at 30 June 2018	9 180 027	5 027 913	3 876 174	1 807 108	19 891 221
Accumulated amortization
Opening balance as at 1 January 2018	2 656 361	3 681 794	2 828 951	-	9 167 106
Changes in consolidation perimeter (companies in)	-	-	6 596	-	6 596
Charges for the period	207 293	325 319	141 340	-	673 952
Disposals	(55 237)	-	(30 059)	-	(85 296)
Exchange rate effect	-	(2 261)	-	-	(2 261)
Transfers	-	1 856	-	-	1 856
Closing balance as at 30 June 2018	2 808 418	4 006 708	2 946 827	-	9 761 953
Accumulated impairment losses:
Opening balance as at 1 January 2018	89 536	-	600 000	-	689 536
Closing balance as at 30 June 2018	89 536	-	600 000	-	689 536
Carrying amount
As at 1 January 2018	6 679 812	1 137 420	1 175 142	1 519 682	9 822 521
As at 30 June 2018	6 371 609	1 021 204	929 347	1 807 108	9 439 733

As at 30 June 2018 the net assets related to the concession rights of Marina de Troia, accounted for within "Patents and other similar rights", amounts to 5,032,473€ (5,261,284€ at 31 December 2017).

GOODWILL During the periods ended 30 June 2018 and 31 December 2017, movements in goodwill,

	30 June 2018	31 December 2017
Gross amount: Opening balance	72 080 082	62 194 124
Increases - acquisition of affiliated companies	10 262 880	10 449 890
Decreases - disposals of affiliated companies	-	563 932
Closing balance	82 342 962	72 080 082
Accumulated impairment losses: (Note 21)
Opening balance	24 703 711	24 353 034
Increases	-	350 677
Transfers	4 917 902	-
Closing balance	29 621 613	24 703 711

Total	52 721 349	47 376 371

OTHER NON-CURRENT DEBTORS As at 30 June 2018 and 31 December 2017, other non-current debtors are detailed as

	30 June 2018	31 December 2017
Loans granted to related parties
Others	34 916	907 655

Impairment losses (Note 21)	34 916 (34 916)	907 655 (34 916)
	(0)	872 739

Trade accounts receivable and other debtors Sale of financial investments	505 000	505 000
Others	2 114 375	4 947 709
Impairment losses (Note 21)	-	-
	2 619 375	5 452 709

Deferred costs
Financing charges	205 243 205 243	276 547 276 547
Total financial instruments	2 824 618	6 601 994
Other non-current debtors	2 824 618	6 601 994

The variation in the loans granted to related parties reflects the acquisition of control in the group of companies Andar from the Andar Group.

The amount registered under the item Sale of financial investments includes amounts to be received from the sale of the participation in UPK.

The amounts included in the item Others within the account "Trade accounts receivable and other debtors" are related to the sale of real estate during the financial year of 2017.

INVENTORIES Inventories as at 30 June 2018 and 31 December 2017 can be detailed as follows,

		30 June 2018	31 December 2017
	of which Real Total Estate Developments		Total	of which Real Estate Developments
Raw materials, by-products and consumables	4 883 845	-	4 677 862	-
Goods for sale	14 476 450	13 684 270	14 767 604	13 282 113
Finished goods	13 325 120	13 301 295	13 281 182	12 613 221
Work in progress	64 457 544	64 897 222	67 372 682	62 728 774

Accumulated impairment losses on stocks (Note 21)	97 142 959 (5 702 697)	91 882 787 (5 240 945)	100 099 331 (5 702 697)	88 624 108 (5 240 945)
Total Operations	91 440 262	86 641 842	94 396 634	83 383 163

12. TRADE ACCOUNTS RECEIVABLE AND OTHER CURRENT

ASSETS As at 30 June 2018 and 31 December 2017, trade accounts receivable and other current assets are detailed as follows:

	30 June 2018	31 December 2017

Trade accounts receivable	30 523 349	31 008 486
Accumulated impairment losses on trade debtors (Note 21)	(6 148 223)	(6 208 847)
	24 375 126	24 799 640
Taxes recoverable	9 467 450	8 828 905
Loans granted to and other amounts to be received from related parties	74 191	38 897
Other current assets
Suppliers with a debtor balance	1 482 713	1 153 208
Other debtors	4 888 990	5 129 832
Accounts receivable from the sale of financial investments	2 202 347	2 862 642
Accounts receivable from the sale of tangible assets	5 671 600	2 859 253
Interest receivable	15	15 434
Deferred costs - Rents	914 481	627 096
Deferred costs - External supplies and services	1 626 246	1 382 160
Other current assets	9 437 005	7 301 557
	26 223 397	21 331 182
Accumulated impairment losses on other current assets (Note 21)	(1 995 925)	(1 995 925)
Trade accounts receivable and other current assets	58 144 238	53 002 698

The caption "Other current assets" includes accruals related with works in progress at the end of the reporting period of 1M€ related to the Industrial Engineering segment and the remaining within the Refrigeration and HVAC segment.

DEFERRED TAXES Deferred tax assets and liabilities as at 30 June 2018 and 31 December 2017 can be detailed as follows, splitted between the different types of temporary differences:

	Deferred tax assets			Deferred tax liabilities
	30 June 2018	31 December 2017	30 June 2018	31 December 2017

Amortisation and Depreciation harmonisation adjustments	257 909	267 271	4 714 602	4 618 137
Provisions and impairment losses of non-tax deductible	5 134 269	5 238 117	-	-
Write off of tangible and intangible assets	71 250	71 250	-	-
Revaluation of tangible assets	-	-	93 680	93 355
Tax losses carried forward	20 710 838	20 710 838	-	-
Write off of stocks	-	-	393 996	393 996
Taxable temporary differences arising from the fair value of non-current	-	-	6 544 704	6 544 704
liabilities Others	1 437 218	1 486 584	9 913 407	9 988 792
	27 611 484	27 774 060	21 660 389	21 638 983

In accordance with the tax statements presented by companies that recorded deferred tax assets arising from tax losses carried forward, as at 30 June 2018 and 31 December 2017, and using exchange rates effective at that time, tax losses carried forward can be summarized as follows:

		30 June 2018			31 December 2017
	Tax losses carried forward	Deferred tax assets	Time limit	Tax losses carried forward	Deferred tax assets	Time limit
With limited time use
Generated in 2013	18 852 311	3 958 985	2018	18 852 311	3 958 985	2018
Generated in 2014	13 536 168	2 842 595	2026	13 536 168	2 842 595	2026
Generated in 2015	45 035 288	9 457 411	2027	45 035 288	9 457 411	2027
Generated in 2016	12 025 566	2 525 369	2028	12 025 566	2 525 369	2028
Generated in 2017	9 173 702	1 926 477	2022	9 173 702	1 926 477	2022
	98 623 036	20 710 838		98 623 036	20 710 838

An analysis was made on the relevance of the recognition of deferred taxes, taking into account the possibility of them to be recovered in accordance with the medium and long

term prospects of the Group. Deferred tax assets arising from tax losses have been recorded only when it is likely to occur taxable income in the future.

As at 30 June 2018, tax losses carried forward amounting to 65,397,474€ (43,912,619€ as at 31 December 2017), have not originated deferred tax assets for prudential reasons and

		30 June 2018		31 December 2017
	Tax losses carried forward	Tax Credit	Time limit	Tax losses carried forward	Tax Credit	Time limit
With limited time use
Generated in 2013	25 853 804	5 429 299	2018	25 043 382	5 259 110	2018
Generated in 2014	963 693	202 376	2026	49 633	10 423	2026
Generated in 2015	1 190 501	250 005	2027	4 751	998	2027
Generated in 2016	1 115 520	234 259	2028	19 292	4 051	2028
Generated in 2017	13 601 250	2 856 263	2022	6 368 844	1 337 457	2022
Generated in 2018	10 094 457	2 119 836	2023	-	-	2023
	52 819 224	11 092 037		31 485 902	6 612 039

Without limited time use	12 147 066	3 036 767		12 001 155	3 000 289
With a time limit different from the above mentioned	431 184	96 382		425 562	95 258
	12 578 250	3 133 149		12 426 717	3 095 547

CASH AND CASH EQUIVALENTS As at 30 June 2018 and 31 December 2017, cash and cash equivalents can be detailed as follows:

	30 June 2018	31 December 2017

Cash at hand	277 522	30 132
Bank deposits	8 820 441	7 276 938
Treasury applications	10 719	-
Cash and cash equivalents on the balance sheet	9 108 682	7 307 069
Bank overdrafts - (Note 17)	-	(73 571)
Cash and cash equivalents in the statement of cash-flows	9 108 682	7 233 499

Bank overdrafts include creditor balances of current accounts in financial institutions, and are disclosed in the balance sheet under current bank loans (Note 17).

EQUITY The share capital of Sonae Capital SGPS, S.A. is represented by 250,000,000 ordinary shares, which do not have the right to a fixed remuneration, with a nominal value of 1€

each. As at 30 June 2018, Sonae Capital owns 4,107,623 own shares (4,783,433 own shares at

31 December 2017) booked for 1,192,808€ (1,305,839 € at 31 December 2017). Other reserves includes amounts equal to the value of own shares held by the Group's parent company. This reserve should be unavailable while these shares are kept by the

company. The Reserves and retained earnings of Sonae Capital Group in the periods ended 30 June 2018 and 31 December 2017 are as follows:

	30 June 2018	31 December 2017

Demerger reserve	132 638 253	132 638 253
Translation reserves	120 049	146 352
Hedging reserves	6 370	6 370
Others	(119 065 831)	(94 517 536)
Other reserves and retained earnings	13 698 841	38 273 439

Demerger reserve The demerger originated a reserve in the amount of 132,638,253€, which has a treatment similar to that of a Legal Reserve. according to the Code of Commercial Companies, it cannot be distributed to shareholders, unless the company is liquidated, but can be used to absorb losses related to prior years, once other reserves have been fully used, or for capital increases.

Translation reserves These reserves are comprised by the conversion of the financial statements of the

Hedging Reserve This caption is comprised by the fair value of hedging derivatives and the accrued interest of that derivative. The amounts in this reserve are transferred to the income statement when subsidiaries are sold or liquidated.

NON-CONTROLLING INTERESTS Movements in non-controlling interests in the periods ended 30 June 2018 and 31

	30 June 2018	31 December 2017

Opening balance as at 1 January	10 915 176	9 925 965
Changes in the percentage of capital held in affiliated companies	-	776 824
Changes resulting from currency translation	-	27 009
Dividends paid	(603 041)	(926 710)
Changes in consolidation perimeter	(677 225)	-
Profit for the period attributable to minority interests	(125 221)	1 112 088
Closing balance	9 509 689	10 915 176

The non-controlling interests are primarily from companies in the Refrigeration and HVAC segment.

BORROWINGS As at 30 June 2018 and 31 December 2017, Borrowings are made up as follows:

	30 June 2018			31 December 2017
	Outstanding amount		Outstanding amount
	Current	Non-Current	Current	Non-Current	Repayable on
Bank loans
Sonae Capital SGPS - commercial paper a)	-	-	4 500 000	-	Jun/2021
Sonae Capital SGPS - commercial paper b)	-	21 000 000	-	4 000 000	Set/2021
Sonae Capital SGPS - commercial paper c)	19 000 000	-	3 200 000	-	Mar/2028
Sonae Capital SGPS - commercial paper d)	10 000 000	-	10 000 000	-	Jun/2018
Sonae Capital SGPS e)	1 000 000	9 000 000	-	10 000 000	Feb/2023
Sonae Capital SGPS - commercial paper f)	-	-	5 000 000	-	Dec/2018
Sonae Capital SGPS - commercial paper g)					Jun/2021
Up-front fees	-	(12 730)	-	(16 867)
Others	1 836 049	2 358 799	1 966 697	3 235 083
	36 836 049	42 346 069	24 666 697	17 218 215
Bank overdrafts (Note 14)	-	-	73 571	-
Bank loans	36 836 049	42 346 069	24 740 268	17 218 215

Bond Loans Sonae Capital 2016/2021 Bonds h)	-	15 000 000	-	15 000 000	Jul/2021
Sonae Capital 2014/2019 Bonds i)	42 500 000	-	-	42 500 000	May/2019
Up-front fees	-	(185 707)	-	(254 190)
Bond Loans	42 500 000	14 814 293	-	57 245 810

Other loans	48 788	172 995	48 788	197 389
Obligations under finance leases Up-front fees on finance leases	3 530 656 -	13 331 479 (53 715)	3 422 578 -	13 867 519 (60 437)
	82 915 493	70 611 121	28 211 633	88 468 497

a) Commercial paper programme, with subscription guarantee, issued on 31 December 2013 with automatic annual renewal until a maximum of seven years and six months, unless denounced by either part.

b) Commercial paper programme, with subscription guarantee, issued on 29 September 2017 and valid until September 2021.

c) Short term commercial paper programme, launched on 28 March 2008 and valid until 28 March 2018, with the option of prolonging the duration for another 10 years. This option was exercised and thus, the current maturity was prorogated for 28 March 2028. Placement with investors or financial institutions and guaranteed by committed credit lines with duration between six months and a year, contracted through relationship banks.

d) Commercial paper programme, with subscription guarantee, issued on 30 June 2017 with annual renewal, unless denounced by either part.

e) Commercial paper programme, with subscription guarantee, issued on 24 February 2017 valid until February 2023 with amortizations every six months beginning 2019.

f) Commercial paper programme, without subscription guarantee, issued on 20 December 2017 with annual renewal for issues placed with

g) Commercial paper programme, with subscription guarantee, issued on 23 June 2016 valid for a 5-year period, with annual amortizations and a 1-year grace period.

h) Sonae Capital, SGPS, S.A., 2016/2021 bond loan in the amount of 15,000,000€, 5 years until maturity and a sole reimbursement on 29 July 2021, except if the Issuer exercise the Call Option. This bond loan bears interest every six months.

i) Sonae Capital, SGPS, S.A., 2014/2019 bond loan in the amount of 42,500,000€, 5 years until maturity and a sole reimbursement on 28 May 2019. This bond loan bears interest every six months.

The interest rate on bonds and bank loans in force on 30 June 2018 was on average 1.79% (2.27% in December 2017).

Bank loans pay interest rates that are indexed to the Euribor market rates of the period,

In the case that any financial institution or investor holding commercial paper opt to not renew on any given maturity date, the Group has credit lines at its disposal to cover this

The repayment schedule of the nominal value of borrowings may be summarised as

		30 June 2018		31 December 2017
	Nominal value	Interest	Nominal value	Interest
N+1	82 915 493	2 312 110	28 211 633	2 437 850
N+2	11 783 590	584 175	57 664 567	1 493 224
N+3	12 067 754	488 241	4 359 194	586 376
N+4	40 453 371	246 885	22 329 433	497 625
N+5	5 400 646	32 370	3 373 693	85 336
After N+5	1 157 912	15 775	1 073 103	26 328
Total	153 778 767	3 679 555	117 011 623	5 126 740

OTHER NON-CURRENT CREDITORS As at 30 June 2018 and 31 December 2017 other non-current creditors can be detailed as

	30 June 2018	31 December 2017
Loans and other amounts payable to related parties

Plaza Mayor Parque de Ocio, S.A. (Note 27)	-	1 739 399
Others	232 513	203 172
	232 513	1 942 571
Other creditors
Creditors in the restructuring process of Torralta Others	729 399 -	650 478 5 349
	729 399	655 827

Deferred income
Obligations by share-based payments (Note 19)	292 997	416 815
Other non-current creditors	292 997 1 254 908	416 814 3 015 213

The main variation in the item Loans and other amounts payable to related parties reflects the liquidation this year of the loan outstanding obtained from Plaza Mayor.

SHARE-BASED PAYMENTS Sonae Capital Group granted deferred performance bonuses to employees, based on shares of Sonae Capital to be acquired, three years after they were attributed to the employee. The acquisition can be exercised during the period commencing on the third anniversary of the grant date and the end of that year. The company has the option to settle in cash instead of shares. The option can only be exercised if the employee still

works for the Sonae Capital Group on the vesting date. As at 30 June 2018 and 31 December 2017, the market value of total liabilities arising from share-based payments, which have not yet vested, may be summarised as follows:

				Fair Value
	Granting year	Vesting year	Number of participants	30 June 2018	31 December 2017
Shares
	2015	2018	5	-	569 471
	2016	2019	5	456 381	415 708
	2017	2020	12	453 162	419 031
	2018	2021	13	388 839	-
Total				1 298 382	1 404 211

As at 30 June 2018 and 31 December 2017, the financial statements include the following amounts corresponding to the period elapsed between the date of granting and those dates for each deferred bonus plan, which have not yet vested:

	30 June 2018	31 December 2017
Other non-current creditors (Note 18)	292 997	416 815
Other current creditors	377 635	569 471
Reserves	(416 815)	(277 619)
Staff Costs	253 817	708 667

TRADE ACCOUNTS PAYABLE As at 30 June 2018 and 31 December 2017 trade accounts payable can be detailed as

	30 June 2018	31 December 2017
Trade creditors	22 909 656	25 369 800
Loans granted by and other payables to related parties	908 094	608 120
Other current liabilities
Fixed assets suppliers	1 972 753	2 392 508
Advances from customers and down payments	5 228 014	1 881 047
Other creditors	8 898 114	12 743 820

Taxes and contributions payable	5 162 714	4 469 392
Accrued staff costs	8 375 180	7 590 826
Amounts invoiced for works not yet completed	4 185 263	3 640 702
Accrued expenses with purchases - Energy Segment	448 970	397 691
Interest payable	347 863	354 584
Investment aid	80 061	126 309
Other liabilities	12 183 037 46 881 968	11 571 394 45 168 275
Trade accounts payable and other current liabilities	70 699 718	71 146 195

PROVISIONS AND ACUMULATED IMPAIRMENT LOSSES Movements in provisions and accumulated impairment losses over the period ended 30

Captions	Balance as at 1 January 2018	Increases	Decreases	Utilisations	Transfers	Balance as at 30 June
Accumulated impairment losses on:						2018
Tangible Assets (Note 8)	34 634 847	13 666	(422 916)	(71 760)	-	34 153 837
Intangible Assets (Note 8)	689 536	-	-	-	-	689 536
Goodwill (Note 9)	24 703 711	-	-	-	4 917 902	29 621 613
Other Investments	291 838	-	-	-	-	291 838
Other non-current assets (Note 10)	34 916	-	-	-	-	34 916
Trade accounts receivable (Note 12)	6 208 847	551 861	(533 963)	(78 521)	-	6 148 223
Other current assets (Note 12)	1 995 925	-	-	-	-	1 995 925
Stocks (Note 11)	5 702 697	-	-	-	-	5 702 697
Non-current provisions	3 079 824	-	-	-	-	3 079 824
Current provisions	4 403 401	205 450	(107 936)	(143 078)	-	4 357 837
Total	81 745 545	770 977	(1 064 815)	(293 359)	4 917 902	86 076 250

As at 30 June 2018 and 31 December 2017 detail of other provisions was as follows:

	30 June 2018	31 December 2017

Judicial claims Provision for secured income	1 981 544 1 656 729	2 225 121 1 451 279
Others	3 799 389	3 806 826
Total	7 437 662	7 483 226

The amount in provision for guaranteed income is the estimate of the difference between the amount to be charged through the properties sold in "Tróia" and the guaranteed income to property owners. The amount to be charged through the operation of these assets is estimated based on the average of the values obtained in previous years.

OTHER OPERATIONAL INCOME Other operational income for the period ended 30 June 2018 and 2017 was as follows:

	30 June 2018	30 June 2017

Own work capitalised	211 710	35 716
Gains on sales of assets	1 594 601	1 616 814
Supplementary income Others	622 558 1 100 514	251 029 809 848
Continued Operations	3 529 384	2 713 407
Total	3 529 384	2 713 407

In the financial period ended on 30 June 2018, the amount within Other Operational Income includes mainly, recognition of operating subsidies and gains on acquisitions of CO²

licences. The amount in gains on sales of assets for the period ended on 30 June 2018 includes gains obtained by the sale of real estate assets located in Tróia.

CONTINGENT ASSETS AND LIABILITIES As at 30 June 2018 and 31 December 2017 the most important contingent liabilities

	30 June 2018	31 December 2017
Guarantees given:
on VAT reimbursements	5 199 346	5 199 346
on tax claims	18 359 488	15 163 918
on municipal claims	1 134 224	1 134 224
guarantees given on rental contracts	23 072 776	16 466 333

Others include the following guarantees:

4,220,699 € as at 30 June 2018 (4,222,349€ as at 31 December 2017) of guarantees on construction works given to clients;
3,766,391€ as at 30 June 2018 (3,766,391€ as at 31 December 2017) of guarantees given concerning building permits within the Tróia Resort Operations segment.
23,324,580€ as at 30 June 2018 of guarantees given concerning building permits in the Energy segment.

The Group has not registered provisions for the events/disagreements for which these guarantees were given since its board of Directors believes that the above mentioned events will not result in a loss for the Group.

INVESTMENT INCOME As at 30 June 2018 and 2017, Investment income was made up as follows:

	30 June 2018		30 June 2017
Equity settlement of group companies	13 273		36 603
Adjustment to the liquidation price of Box Lines Navegação Gains on disposal of investments in group companies	12 076	25 349	-	36 603
Impairment losses related to Investments Others		(36 864) -		- 1 771 634
Investment Income	-	(11 515)	-	1 808 237

TAXATION As at 30 June 2018 and 2017, Taxation was made up as follows:

	30 June 2018	30 June 2017
Current tax	474 167	367 159
Deferred tax	183 655	378 505
Taxation	657 822	745 664

RECONCILIATION OF CONSOLIDATED NET PROFIT As at 30 June 2018 and 2017, the reconciliation of consolidated net profit can be analysed as follows:

	30 June 2018	30 June 2017

Aggregate net profit - continued operations	65 612 864	151 259 357
Aggregate net profit - discontinued operations	(2 510 203)	(541 829)
Harmonisation adjustments	(133 422)	(1 744 446)
Elimination of intragroup dividends	(63 288 522)	(154 894 877)
Share of gains/(losses) of associated undertakings	230 863	193 871
Elimination of intragroup capital gains/(losses)	106 324 093	32 399
Elimination of intragroup impairment	(116 308 035)	-
Adjustments of gains/(losses) of financial shareholdings sale	-	1 765 245
Others	16 580	(3)
	(8 003 297)	(3 331 399)
Consolidated net profit for the year - continued operations Consolidated net profit for the year - discontinued operations	(2 052 482)	(598 884)
	(10 055 779)	(3 930 283)
Consolidated net profit for the year

RELATED PARTIES Balances and transactions with related parties are detailed as follows:

Transactions	Sales and services rendered	June 2018 Purchases and services obtained	June 2017 Sales and services rendered	Purchases and services obtained
Parent company
Associated companies	12 305	1 714	14 760	2 342

Feneralt - Produção de Energia, ACE	7 873	(10 054)	8 533	(10 748)
Lidergraf - Artes Gráficas, Lda Other partners and Group companies	4 432 16 964 900	11 768 3 325 998	6 227 21 275 852	13 090 2 777 136

8ª Avenida - Centro Comercial, S.A.	1 827	-	-	-
Águas Furtadas - Soc. Agricola, S.A.	1 295	-	1 253	-
Algarveshopping - Centro Comercial, S.A.	(4 443)	-	-	-
Alpêssego - Sociedade Agrícola, S.A.	1 258	-	3 314	-
Casa Agrícola de Ambrães, S.A.	862	-	1 564	-
Aqualuz - Turismo e Lazer, Lda	717 560	(89)	695 123	1 661
Arrábidashopping - Centro Comercial, S.A. BB Food Service, S.A.	934 129 375	- (2 215)	435 259 961	- (3 041)
BOM MOMENTO - Comércio Retalhista, S.A.	41 474	(1 199)	31 940	(34)
Bright Development Studio, S.A.	-	-	62	-
Prod. Agric. Biológica, S.A.	117 445	(422)	-	-
Cascaishopping - Centro Comercial, S.A.	3 740	(130)	508 351	(5)
Centro Colombo - Centro Comercial, S.A.	314 502	710 373	370 781	108 714
Continente Hipermercados, S.A.	2 262 655	(143 291)	1 959 234	(16 543)
Contimobe - Imobil.Castelo Paiva, S.A.	-	2 423	-	1 790
Digitmarket - Sistemas de Informação, S.A.	69	164 646	-	135 730
Discovery Sports, S.A.	-	-	1 235	-
Efanor Investimentos, SGPS, S.A.	1 121	-	-	-
Efanor Serviços de Apoio à Gestão, S.A.	34 265	-	33 682	-
Estação Viana - Centro Comercial, S.A.	-	-	16	-
Euroresinas - Indústrias Quimicas, S.A.	-	147	-	(2 820)
Fashion Division, S.A.	163	-	2 602	-
Sonae Arauco Deutschland AG	218	-	-	-
Guimarãeshopping - Centro Comercial, S.A.	810	-	1 529	-
Iberosegur - Sociedade Ibérica de Mediação de Seguros, Lda.	951	-	553	-
Fundo de Invest. Imobiliário Imosede	113 553	280 370	76 710	279 464
Imosistema - Sociedade Imobiliária, S.A.	-	-	(3 550)	-
Fundo Invest. Imobiliário Imosonae Dois	-	-	77 215	-
Infofield - Informática, S.A.	-	-	41	-
Inovretail, S.A.	1 357	-	-	-
Insco Insular de Hipermercados, S.A.	446 726	(56 822)	84 585	(4)
LCC LeiriaShopping Centro Comercial S.A.	140	-	(2 276)	-
Loureshopping - Centro Comercial, S.A.	-	1 437	-	-
NOS Sistemas S.A.	-	93 080	21 082	559 385
Modelo - Dist. de Mat. de Construção, S.A.	43 004	-	2 498	-
Modelo Continente Hipermercados, S.A.	10 177 126	269 081	9 341 735	252 984
Modelo Continente Hipermercados, Suc. Modelo Hipermercados Trading, S.A.	- 1 726	2 553 -	302 -	5 700 -
MDS Corretor de Seguros, S.A.	175 648	(9 579)	171 357	748
MDS Africa SGPS, S.A.	275	-	418	-
MDS Auto - Mediação de Seguros, S.A.	972	-	951	-
MDS Consulting, S.A.	5 489	1 669	5 489	1 026
MDS, SGPS, S.A.	496	-	636	-
Modalfa - Comércio e Serviços, S.A.	852	-	15 636	-
MODALLOOP - Vestuário e Calçado, S.A.	224	-	375	-
Modelo Hiper Imobiliária, S.A.	(42)	-	-	-

Movelpartes - Comp.para Ind. Mobiliária, S.A.	197	-	118	-
Norteshopping - Centro Comercial, S.A.	9 084	227 137	21 500	118 302
Paracentro - Gest. de Galerias Com., S.A. Parklake Shopping, S.A.	- -	- -	46 009 6 668 986	2 300 (366)
PHARMACONTINENTE - Saúde e Higiene, S.A.	28	-	2 270	541
Prosa - Produtos e Serviços Agrícolas, S.A.	15 682	1 186	15 460	(505)
Público - Comunicação Social, S.A.	900	3 829	90	6 993
QCE - Desenvolvimento e Fabrico de Equipamentos, S.A.	-	(234 332)	-	(218 921)
Saphety Level - Trusted Services S.A.	-	71 687	-	67 197
SONAESR - Serviços e logistica, S.A.	14 558	-	10 826	-
SFS - Serviços de Gestão e Marketing, S.A.	-	867	-	-
Sonae Financial Services, S.A.	-	378	1 580	-
Sondis Imobiliária, S.A.	22 378	-	-	-
Sonae Indústria - SGPS, S.A.	534	-	725	-
Sonae Arauco Portugal, S.A.	1 324 554	1 088 917	28 207	(80)
Sonae Industria de Revestimentos, S.A.	226 529	216 187	229 701	147 894
SIRS - Soc. Ind. Radiodifusão Sonora, S.A.	505	14 426	-	14 942
RACE - Refrigeration & Air Conditioning Engineering, S.A.	-	-	-	(39 493)
Sierra Management Portugal - Gest. CC, S.A.	(295)	58 665	7 733	799 546
Sohi Meat Solut - Distr. Carnes	168 844	8 814	26 681	10 414
Sonae Center Serviços II, S.A.	34 088	309 773	25 955	284 728
Sonae.com, SGPS, S.A.	-	4 950	-	-
Sonae Investment Management - S.T., SGPS, S.A.	13	-	-	-
Sonaecom - Serviços Partilhados, S.A	-	-	49 452	(75 276)
Sonaegest - Soc.Gest. Fundos Investimentos	1 489	112 701	1 441	112 209
Sonaerp - Retail Properties, S.A.	470 476	40 457	213 541	8 456
Sonae, SGPS, S.A.	7 985	36 500	7 417	36 500
Sport Zone - Comércio Art. Desporto, S.A.	836	13 017	23 762	27 404
Sonae Arauco, S.A.	(71)	-	1 929	-
Textil do Marco, S.A.	57 451	-	57 254	-
Tableros Tradema, S.L.	451	-	1 530	-
Centro Vasco da Gama - Centro Comercial, S.A.	-	2 927	-	1 951
We Do Consulting - SI, S.A.	-	35 784	181	148 077
Worten - Equipamento para o Lar, S.A.	9 119	96	163 759	(432)

ZIPPY - Comércio e Distribuição, S.A.	5 938 16 977 205	- 3 327 712	4 906 21 290 612	- 2 779 478

Transactions	Interest income	Interest expenses	Interest income	Interest expenses

Parent company
Associated companies	-	-	26 236	-
Andar - Sociedade Imobiliária, S.A.	-	-	26 236	-
Other partners and Group companies	-	32 728	-	44 613
Plaza Mayor Parque de Ocio, S.A.	-	32 728	-	44 613
	-	32 728	26 236	44 613

	June 2018		December 2017
Balances	Accounts receivable Accounts payable		Accounts receivable Accounts payable
Parent company
Associated companies	11 084	5 659	34 294	17 105

Andar - Sociedade Imobiliária, S.A.	-	-	16 054	-
Feneralt - Produção de Energia, ACE Lidergraf - Artes Gráficas, Lda.	8 759 2 325	- 5 659	9 333 8 907	- 17 105
Other partners and Group companies	8 589 165	2 483 127	7 586 105	2 117 281

Águas Furtadas - Soc. Agricola, S.A.	266	-	257	-
Algarveshopping - Centro Comercial, S.A.	16 479	-	21 943	-
Alpêssego - Sociedade Agrícola, S.A.	2 874	-	2 866	-
Arrábidashopping- Centro Comercial, S.A.	383	-	-	-
Asprela - Sociedade Imobiliária, S.A.	(1 513)	-	1 513	-
Aqualuz - Turismo e Lazer, Lda	422 588	208 494	85 036	53 327
BB Food Service, S.A.	27 722	(5 098)	101 974	1 783
BOM MOMENTO - Comércio Retalhista, S.A.	12 551	-	157 504	-
Casa Agrícola de Ambrães, S.A.	177	-	171	-
Cascaishopping - Centro Comercial, S.A.	73 812	-	163 696	-
Centro Colombo - Centro Comercial, S.A.	152 527	171 261	75 232	199 160
Contimobe - Imobil.Castelo Paiva, S.A.	404	1 490	404	993
Continente Hipermercados, S.A.	708 493	7 268	1 630 860	10 144
Digitmarket - Sistemas de Informação, S.A.	22 706	22 330	133 948	39 418
Efanor Investimentos, SGPS, S.A.	1 192	4	280	-
Efanor Serviços de Apoio à Gestão, S.A.	1 317	5 512	2 709	5 512
Sonaerp - Retail Properties, S.A.	59 058	35 706	390 668	34 839
Euroresinas - Indústrias Quimicas, S.A.	-	882	-	10 160
Fashion Division, S.A.	425	-	1 364	-
Fundo de Invest. Imobiliário Imosede	41 212	53 795	13 502	6 410
Gaiashopping II - Centro Comercial, S.A.	(163)	(163)	-	163
Go Well, S.A.	-	3	-	635
Guimarãeshopping - Centro Comercial, S.A.	996	-	163	-
Infofield - Informática, S.A.	1 683	-	1 683	-
Insco Insular de Hipermercados, S.A.	113 849	-	523 525	-
LCC LeiriaShopping Centro Comercial S.A.	-	-	9 372	-
Loureshopping - Centro Comercial, S.A.	-	-	1 768	-
MDS Africa SGPS, S.A.	-	-	170	-
MDS Auto - Mediação de Seguros, S.A.	26	-	-	-
MDS Consulting, S.A.	-	901	-	1 918
MDS Corretor de Seguros, S.A.	24 734	195 636	17 948	106 257
MDS RE - Mediador de Resseguros, SGPS, S.A.	(838)	-	(838)	-
MDS, SGPS, S.A.	172	8	-	-
Modalfa - Comércio e Serviços, S.A.	2 216	-	68 245	-
MODALLOOP - Vestuário e Calçado, S.A.	6 235	6 235	6 241	6 235
Modelo - Dist. de Mat. de Construção, S.A.	3 065	-	989	-
Modelo Continente Hipermercados, Suc.	-	-	160	-
Modelo Continente Hipermercados, S.A.	5 290 228	404 482	3 550 053	311 852
Modelo Hiper Imobiliária, S.A.	-	-	52	-
Modelo Hipermercados Trading, S.A.	405	-	-	-
Movelpartes - Comp. para Ind. Mobiliária, S.A.	-	-	494	-
Norteshopping - Centro Comercial, S.A.	22 031	281 910	21 699	347 635
NOS Sistemas S.A.	223	95 248	-	90 938
Paracentro - Gest. de Galerias Com., S.A.	-	4 000	-	4 000
Parklake Shopping, S.A.	463 000	-	-	117 207
PHARMACONTINENTE - Saúde e Higiene, S.A.	35	-	1 841	-
Plaza Mayor Parque de Ocio, S.A.	-	-	-	40 300
Prod. Agric. Biológica, S.A.	35 812	-	19 818	-
Prosa - Produtos e Serviços Agrícolas, S.A.	2 914	1 186	28 772	3 740
Público - Comunicação Social, S.A.	886	875	-	1 047

QCE - Desenvolvimento e Fabrico de Equipamentos, S.A. - (549) - -

ZIPPY - Comércio e Distribuição, S.A.	23	-	5 807	-
Worten - Equipamento para o Lar, S.A.	16 158	9 236	79 431	9 221
We Do Consulting - SI, S.A.	-	18 116	20 191	86 412
Textil do Marco, S.A.	9 171	119	9 101	119
Tableros Tradema, S.L.	205	-	215	-
Sport Zone - Comércio Art. Desporto, S.A.	985	2 294	2 178	14 337
Sondis Imobiliária, S.A.	-	60	-	-
SONAESR - Serviços e logistica, S.A.	19 504	24	10 289	-
Sonaegest - Soc. Gest. Fundos Investimentos	1 832	33 631	-	16 849
Sonaecom - Serviços Partilhados, S.A	-	-	25 460	-
Sonaecenter Serviços, S.A.	320	269	-	-
Sonae.com, SGPS, S.A.	-	-	-	4 059
Sonae UK, Ltd.	-	269	-	-
Sonae, SGPS, S.A.	12 481	25 038	5 341	50 000
Sonae Investment Management - S.T., SGPS, S.A.	15	-	208	-
Sonae Indústria - SGPS, S.A.	-	3 199	830	-
Sonae Industria de Revestimentos, S.A.	164 185	77 883	185 960	83 380
Sonae Center Serviços II, S.A.	35 616	194 012	52 498	183 618
Sonae Arauco, S.A.	404	-	544	-
Sonae Arauco Portugal, S.A.	834 629	413 440	19 861	10 890
Sonae Arauco Netherlands B.V.	-	538	-	-
Sohi Meat Solut - Distr. Carnes	(29 718)	88 451	119 910	27 332
SIRS - Soc. Ind. Radiodifusão Sonora, S.A.	4 920	12 930	-	7 824
Sierra Management Portugal-Gest. CC, S.A.	816	16 043	5 357	29 276
SFS - Serviços de Gestão e Marketing, S.A.	1 864	39 772	235	146 825
SEKIWI, SGPS., S.A.	303	-	273	-
Saphety Level - Trusted Services S.A.	-	56 387	-	53 466
Rio Sul - Centro Comercial, S.A.	5 270	-	6 334	-

Balances	Loans obtained	Loans granted	Loans obtained	Loans granted


Parent company Associated companies	-	-	-	872 739
Andar - Sociedade Imobiliária, S.A.	-	-	-	872 739
Other partners and Group companies	-	-	1 710 059	-
Plaza Mayor Parque de Ocio, S.A.	-	-	1 710 059	-
	-	-	1 710 059	872 739

8 600 249 2 488 786 7 620 399 2 134 386

EARNINGS PER SHARE Earnings per share for the periods ended 30 June 2018 and 2017 were calculated taking

	30 June 2018	30 June 2017
Net profit
Net profit taken into consideration to calculate basic earnings per share (Net profit for the period)	(9 930 558)	(4 475 984)
Net profit taken into consideration to calculate diluted earnings per share	(9 930 558)	(4 475 984)
Number of shares
Weighted average number of shares used to calculated basic earnings per share	248 085 190	247 345 810
Weighted average number of shares used to calculated diluted earnings per share	248 085 190	247 345 810
Earnings per share (basic and diluted) - Continued operations	(0,031756)	(0,015675)
Earnings per share (basic and diluted) - Discontinued operations	(0,008273)	(0,002421)
Earnings per share (basic and diluted)	(0,040029)	(0,018096)

There are no convertible instruments used in relation to the shares of Sonae Capital,

SEGMENT INFORMATION In 30 June 2018 and 31 December 2017, the following were identified as segments:
Tróia Resort Operations;
Hospitality;
Fitness;
Energy;
Refrigeration and HVAC;
Real Estate;
Industrial Engineering;
Holding & Others.

The contribution of the business segments to the income statement of the periods ended

Profit and Loss Account	Tróia Resort Operations	Hospitality	Fitness	30 June 2018 Energy	Refrigeration and HVAC	Industrial Engineering	Holding & Others	Intersegment Adjustments	Consolidated
Turnover	3 530 224	9 505 015	17 736 300	25 546 622	22 137 443	6 355 869	5 160 898	(6 069 872)	87 153 829

Other operational income	400 056	262 950	530 312	671 173	70 875	265 227	1 908 621	(671 119)	3 529 384

Total operational income	3 930 280	9 767 966	18 266 612	26 217 796	22 208 318	6 621 097	7 069 519	(6 740 990)	90 683 212

Operational cash-flow (EBITDA)	(290 449)	(1 103 284)	2 193 059	7 121 818	(288 510)	(484 515)	914 620	(804 697)	5 901 228

Profit and Loss Account	Tróia Resort Operations	Hospitality	Fitness	30 June 2017 Energy	Refrigeration and HVAC	Industrial Engineering	Holding & Others	Intersegment Adjustments	Consolidated
Turnover	3 555 994	8 328 424	11 477 942	21 373 805	23 344 945	-	5 280 639	(6 454 048)	69 700 265

Other operational income	537 378	268 700	334 476	223 866	140 308	-	4 049 611	(2 911 269)	2 713 407

Total operational income	4 093 372	8 597 124	11 812 418	21 597 671	23 485 253	-	9 330 251	(9 365 317)	72 413 672

Operational cash-flow (EBITDA)	(754 037)	(1 443 256)	1 475 834	5 680 836	(69 384)	-	5 084 411	(2 585 633)	5 697 803

The contribution of the business segments to the Balance sheets as at 30 June 2018 and

Balance Sheet	Tróia Resort Operations	Hospitality	Fitness	Energy	30 June 2018 Refrigeration and HVAC	Industrial Engineering	Holding & Others	Intersegment Adjustments	Consolidated
Fixed Assets Tangible, Intangible and Goodwill	66 498 263	12 761 673	49 166 623	67 013 670	205 497	17 022 140	745 287	(22 813 302)	328 849 782
Investments	167 795 811	10 936 528	46 193	366 097	17 949	51 569	435 272 177	(613 602 227)	2 175 188
Other Assets	67 966 094	6 995 546	2 985 709	13 748 686	42 585 962	9 500 013	461 433 915	(510 336 249)	191 238 257
Total Assets	302 260 168	30 693 747	52 198 525	81 128 454	42 809 409	26 573 721	897 451 379	(1 146 751 777)	522 263 226
Total Liabilities	181 074 553	25 542 620	50 298 262	77 299 978	17 253 534	27 988 248	154 945 292	(508 550 107)	254 579 294
Technical investment	1 024 763	519 278	2 404 433	9 415 137	120 394	438 400	120 336	(1 711)	14 171 174
Gross Debt	9 003 516	-	1 278 834	7 480 201	252 897	3 449 771	132 314 293	(252 897)	153 526 614
Net Debt	8 492 394	(139 237)	989 555	7 053 012	176 789	3 371 260	131 878 473	(252 897)	144 417 933

Balance Sheet	Tróia Resort Operations	Hospitality	Fitness	Energy	31 December 2017 Refrigeration and HVAC	Industrial Engineering	Holding & Others	Intersegment Adjustments	Consolidated
Fixed Assets Tangible, Intangible and Goodwill	71 505 248	12 618 277	10 476 681	67 475 147	9 763 348	-	1 018 191	(2 598 001)	322 630 866
Investments	153 770 439	10 849 159	25 662	172 389	15 484	-	449 240 469	(620 145 656)	1 997 458
Other Assets	81 279 867	5 694 754	2 287 983	12 812 445	49 257 629	-	396 404 923	(380 364 104)	191 498 283
Total Assets	306 555 555	29 162 190	12 790 326	80 459 981	59 306 461	-	846 663 583	(1 003 377 762)	516 126 607

Total Liabilities	181 173 050	25 962 972	9 029 069	72 862 309	21 196 764	-	132 520 962	(465 020 715)	224 757 320
Technical investment	1 827 798	954 495	3 232 316	4 666 123	102 031	-	474 430	(22 575)	12 723 301
Gross Debt	9 886 023	-	964 151	7 582 867	73 571	-	93 945 810	(0)	116 680 131
Net Debt	9 348 956	(334 502)	838 451	7 373 986	(2 590 142)	-	93 729 788	0	109 373 062

SUBSEQUENT EVENTS No significant events with impact on the financial statements, requiring further disclosure,
APPROVAL OF THE FINANCIAL STATEMENTS These consolidated financial statements were approved by the Board of Directors and authorized for issue on 27 July 2018.

Duarte Paulo Teixeira de Azevedo

Paulo José Jubilado Soares de Pinho

Maria Cláudia Teixeira de Azevedo

Miguel Jorge Moreira da Cruz Gil Mata

PART IV SEPARATED FINANCIAL STATEMENTS

REPORT AND ACCOUNTS – JUNE 2018

Cosolidated Financial Statements

(Amounts expressed in euro)
ASSETS	Notes	30/06/2018	31/12/2017

NON-CURRENT ASSETS:
Tangible assets		26 723	27 721
Investments	4	264 412 942	300 257 447
Investments in associated companies and joint ventures	4	1 125 301	1 125 301
Other investments	4	275 184	275 185
Deferred tax assets	7	16 764 699	16 764 699
Other non-current debtors Total non-current assets	5	387 991 358 670 596 206	314 130 161 632 580 515

CURRENT ASSETS:
Other debtors	6	54 915 968	61 331 400
Income tax receivable	6	1 872 554	1 639 594
Other current assets	6	4 862 773	4 316 836
Cash and cash equivalents	8	406 308	171 848
Total Current Assets		62 058 389	67 459 678
TOTAL ASSETS		732 654 595	700 040 193

EQUITY AND LIABILITIES	Notes	30/06/2018	31/12/2017

EQUITY:
Share capital	9	250 000 000	250 000 000
Own Shares	9	(1 192 808)	(1 305 839)
Reserves Profit/(Loss) for the year	10	292 980 837 40 615 431	301 630 917 5 589 342
Total Equity		582 403 460	555 914 420

NON-CURRENT LIABILITIES:
Bank Loans	11	40 000 000	14 000 000
Bonds Other non-current liabilities	11 13	14 814 293 168 327	57 245 810 287 354
Total Non-Current Liabilities		54 982 620	71 533 164

CURRENT LIABILITIES:
Bank Loans	11	35 000 000	22 700 000
Bonds	11	42 500 000	-
Trade creditors	13	138 981	137 599
Other creditors	12	16 710 358	48 568 841
Other taxes payable	13	43 040	50 069
Other current liabilities Total Current Liabilities	13	876 138 95 268 516	1 136 100 72 592 608

TOTAL LIABILITIES		150 251 136	144 125 773
TOTAL EQUITY AND LIABILITIES		732 654 595	700 040 193

The accompanying notes are part of these financial statements.

(Amounts expressed in euro)

	Notes	30/06/2018	30/06/2017

Other operating income	17	58 962	54 560
External supplies and services	14	(769 304)	(670 329)
Staff costs	15	(646 065)	(1 049 450)
Depreciation and amortisation		(998)	(939)
Other operating expenses	17	(30 218)	(27 967)
Operational profit/(loss)		(1 387 623)	(1 694 126)

Financial Income	16	4 526 554	5 527 075
Financial Expenses	16	(1 789 497)	(1 879 163)
Net financial income / (expenses)		2 737 057	3 647 912
Investment income	16	38 897 405	19 208 415
Profit/(Loss) before taxation		40 246 839	21 162 201

Taxation	18	368 592	531 375

Profit/(Loss) for the year		40 615 431	21 693 576
Profit/(Loss) per share
Basic	19	0,163716	0,087705
Diluted	19	0,163716	0,087705

The accompanying notes are part of these financial statements.

(Amounts expressed in euro)

	2nd Quarter 2018 (Unaudited) *	2nd Quarter 2017 (Unaudited) *

Other operating income
External supplies and services	29 718	30 740
Staff costs	(412 829)	(323 700)
Depreciation and amortisation	(321 294)	(548 613)
Other operating expenses	(499)	(470)
Operational profit/(loss)	(14 917)	(19 195)
	(719 820)	(861 238)
Financial Income
Financial Expenses	2 365 594	2 807 348
Net financial income / (expenses)	(772 519)	(938 059)
Investment income	1 593 075	1 869 290
Profit/(Loss) before taxation	37 994 504	19 186 991
	38 867 759	20 195 043
taxation
	103 748	312 321
Profit/(Loss) for the year	38 971 508	20 507 364

The accompanying notes are part of these financial statements.

* Prepared in accordance with IAS 34 - Interim Financial Reporting and unaudited

SONAE CAPITAL, SGPS, S.A.
SEPARATE STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2018 AND 2017
(Amounts expressed in euro)

	30/06/2018	30/06/2017

Net profit/(loss) for the period	40 615 431	21 693 576


Total comprehensive income for the period	40 615 431	21 693 576

The accompanying notes are part of these financial statements.

SONAE CAPITAL, SGPS, S.A.
SEPARATE STATEMENT OF COMPREHENSIVE INCOME
FOR THE 2ND QUARTER OF 2018 AND 2017
(Amounts expressed in euro)

	2nd Quarter 2018	2nd Quarter 2017
Net profit/(loss) for the period	(Unaudited) * 19 995 135	(Unaudited) * (14 633 354)

19 995 135

(14 633 354)

The accompanying notes are part of these financial statements.

Total comprehensive income for the period

* Prepared in accordance with IAS 34 - Interim Financial Reporting and unaudited

(Amounts expressed in euro) Attributable to Equity Holders of Sonae Capital
	Share Capital (Note 9)	Own Shares (Note 9)	Legal Reserve (Note 10)	Other Reserves (Note 10)	Retained Earnings	Subtotal	Net Profit/(Loss)	Total	Non Controlling Interests	Total Equity
Balance as at 1 January 2017	250 000 000	(1 404 226)	10 073 164	306 815 095	-	316 888 259	8 738 316	574 222 349	-	574 222 348
Total comprehensive income for the period	-	-	-	-	-	-	21 693 576	21 693 576	-	21 693 576
Appropriation of profit of 2016:
Transfer to legal reserves and retained earnings	-	-	-	-	8 738 316	8 738 316	(8 738 316)	-	-	-
Dividends paid	-	-	-	(16 220 257)	(8 301 400)	(24 521 657)	-	(24 521 657)	-	(24 521 657)
(Acquisition)/Sales of own shares	-	98 387	-	962 915	(436 916)	525 999	-	624 386	-	624 386
Changes in the percentage of capital held in affiliated companies	-	-	-	-	-	-	-	-	-	-
Other changes	-	-	-	-	-	-	-	-	-	-
Balance as at 30 June 2017	250 000 000	(1 305 839)	10 073 164	291 557 753	-	301 630 917	21 693 576	572 018 654	-	572 018 653

Balance as at 1 January 2018	250 000 000	(1 305 839)	10 510 080	291 120 837	-	301 630 917	5 589 342	555 914 420	-	555 914 420
Total comprehensive income for the period	-	-	-	-	-	-	40 615 431	40 615 431	-	40 615 431
Appropriation of profit of 2017:	-	-	-	-	-	-	-	-	-	-
Transfer to legal reserves and retained earnings	-	-	279 467	-	5 309 875	5 589 342	(5 589 342)	-	-	-
Dividends paid	-	-	-	(9 443 668)	(5 309 875)	(14 753 543)	-	(14 753 543)	-	(14 753 543)
(Acquisition)/Sales of own shares	-	113 031	-	-	-	-	-	113 031	-	113 031
Changes in the percentage of capital held in affiliated companies	-	-	-	-	-	-	-	-	-	-
Other changes	-	-	-	514 121	-	514 121	-	514 121	-	514 121
Balance as at 30 June 2018	250 000 000	(1 192 808)	10 789 547	282 191 290	-	292 980 837	40 615 431	582 403 460	-	582 403 460

The accompanying notes are part of these financial statements.

SONAE CAPITAL, SGPS, SA
INDIVIDUAL STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2018 AND 2017 (Amounts expressed in euro)
	Notes	30/06/2018	30/06/2017	2nd Quarter 2018 (Unaudited)*	2nd Quarter 2017 (Unaudited)*
OPERATING ACTIVITIES:

Cash receipts from trade debtors		(786)	-	(786)	-
Cash paid to trade creditors		(798 726)	(679 424)	(377 783)	(444 056)
Cash paid to employees		(572 675)	(740 916)	(398 652)	(495 665)
Cash flow generated by operations		(1 372 187)	(1 420 340)	(777 221)	(939 721)
Income taxes (paid) / received		(263 647)	(259 424)	(58 954)	(263 438)
Other cash receipts and (payments) relating to operating activities Net cash from operating activities (1)		313 312 (1 322 522)	(1 684 077) (3 363 841)	1 594 691 758 516	(194 137) (1 397 296)

INVESTMENT ACTIVITIES:
Cash receipts arising from:
Investments	22	50 196 330	600 000	50 196 330	600 000
Interest and similar income		3 948 971	8 450 559	7 350	12
Loans granted	6	12 883 189	411 222	12 883 189	-
Dividends	16	25 433 333	18 122 785	25 433 333	18 122 785
Others		1 137 575	1 053 753	239 490	1 053 753
		93 599 398	28 638 319	88 759 692	19 776 550
Cash Payments arising from:
Investments	22	(1 442 572)	(1 069 344)	( 149 894)	(1 069 344)
Loans granted	6	(80 615 500)	(33 124 608)	(64 458 636)	(20 939 372)
		(82 058 072)	(34 193 952)	(64 608 530)	(22 008 716)
Net cash used in investment activities (2)		11 541 326	(5 555 633)	24 151 162	(2 232 166)

FINANCING ACTIVITIES:
Cash receipts arising from:
Loans obtained	11	46 000 000	45 700 000	28 000 000	43 500 000
Sale of own shares		190 012 46 190 012	98 387 45 798 387	190 012 28 190 012	98 387 43 598 387
Cash Payments arising from:
Loans obtained		(39 704 800) (29 035 543)		(35 580 400)	(5 121 843)
Interest and similar charges	11	(1 719 663)	(1 774 576)	(1 072 280)	(1 144 853)
Dividends		(14 749 893)	(24 515 574)	(14 749 893)	(24 515 574)
			(56 174 356) (55 325 693)	(51 402 573)	(30 782 270)
Net cash used in financing activities (3)		(9 984 344)	(9 527 307)	(23 212 561)	12 816 116
Net increase in cash and cash equivalents (4) = (1) + (2) + (3)		234 460	(18 446 781)	338 005	9 186 653
Cash and cash equivalents at the beginning of the period		171 848	27 861 181	68 303	227 746
Cash and cash equivalents at the end of the period	14	406 308	9 414 399	406 308	9 414 399
	14

The accompanying notes are part of these financial statements.

Prepared in accordance with IAS 34 - Interim Financial Reporting

SONAE CAPITAL, SGPS, S.A.

(Translation from the Portuguese Original) (Amounts expressed in euro)

INTRODUCTION Sonae Capital, SGPS, S.A. ("the Company" or "Sonae Capital") whose registered office is at Lugar do Espido, Via Norte, Apartado 3053, 4471-907 Maia, Portugal, was set up on 14 December 2007 by public deed, following the demerger from Sonae, SGPS, S.A. of the whole of the shareholding in the company formerly named Sonae Capital, SGPS, S.A., now named SC, SGPS, S.A., in compliance with paragraph a) of Article 118 of the Code of Commercial Companies.

The Company's financial statements are presented as required by the Code of Commercial Companies. According to Decree-Law 158/2009 of 13 July of 2009, the Company's financial statements have been prepared in accordance with International Financial Reporting Standards.

MAIN ACCOUNTING POLICIES The main accounting policies adopted in preparing the accompanying separate financial statements are consistent with those used in the financial statements presented for the year ended 31 December 2017.

2.1 Basis of preparation

Interim financial statements are presented quarterly, in accordance with IAS 34 –

"Interim Financial Reporting". The accompanying financial statements have been prepared from the books and accounting records on a going concern basis and under the historical cost convention, except for financial instruments, which are stated at fair value.

CHANGES IN ACCOUNTING POLICIES During the period, there were no changes in accounting policies or prior period errors.
FINANCIAL INVESTMENTS

31 December 2017
349 194 729

1 200
1
23 034
250 950
349 469 914
(47 811 981)
301 657 933
30 June 2018 313 313 359 1 200 - 23 034 250 950 313 588 543 (47 775 117) 265 813 427

4.1 Investments in affiliated and associated undertakings As at 30 June 2018 and 31 December 2017, the detail of Investments in Affiliated and Associated Companies is as shown in the table below:

Book Value	Equity	Profit / (Loss) for the period

		3 745 824
		1 694 941
		22 850 864
		192 270
		(1 004 816)
		173 264
		(51 162)
		(620 861)
		13 655
		(90 083)
100,00% 59,87% 100,00% 24,50% 100,00% 100,00% 100,00% 100,00% 70,00% 100,00%	2 725 000 42 271 519 167 132 793 1 125 301 25 577 659 5 857 175 263 698 34 575 100 32 492 436 1 292 678 313 313 359	30.06.2018 6 845 422 72 005 755 101 601 036 8 004 584 12 502 563 6 445 531 (4 865 247) 579 139 40 916 738 1 202 595

Impairment

Total	47 775 117
SC, Industrials, SGPS, S.A.
SC Finance BV	263 698 10 792 934
Troiaresort, SGPS, S.A.
SC Assets, SGPS, S.A.	11 140 826
	25 577 659

Sociedade	% Held	Book Value	31.12.2017 Equity	Profit / (Loss) for the period

CAPWATT, SGPS, S.A.	100,00%	2 725 000	5 132 247	2 139 631
Fundo Esp de Invest. Imob Fechado WTC	59,87%	42 271 519	72 210 814	4 081 698
Troiaresort, SGPS, S.A.	100,00%	167 132 793	78 750 172	(793 608)
Interlog, SGPS, S.A.	98,94%	21 658 210	21 858 053	5 065
Lidergraf - Artes Gráficas, S.A.	24,50%	1 125 301	8 198 240	1 296 983
SC Assets, SGPS, S.A.	100,00%	25 577 659	13 507 379	(314 576)
SC Hospitality, SGPS, S.A.	100,00%	5 857 175	6 272 267	(169 017)
SC Finance B.V.	100,00%	263 698	(4 814 085)	6 022 698
SC, Industrials, SGPS, S.A.	100,00%	34 575 100	24 479 800	23 279 800
Race, SGPS, S.A.	70,00%	32 492 436	40 903 083	252 350
Solinca - Health & Fitness, S.A.	100,00%	15 515 838	1 075 719	(144 724)
Total		349 194 729

Impairment

SC Assets, SGPS, S.A.	25 577 659
Interlog, SGPS, S.A.	36 864
Troiaresort, SGPS, S.A.	11 140 826
SC Finance BV	263 698
SC, Industrials, SGPS, S.A.	10 792 934
Total	47 811 981

Investments carried at cost correspond to those in unlisted companies and for which a fair value cannot be reliably estimated.

Impairment tests on financial investments were performed in 2017, based on external valuations of the real estate of group companies or DCF methodology, to assess the fair

These assessments use discount rates that correspond to the weighted average cost of capital (WACC), calculated on the basis of the business type in which they operate and their target capital structures, and are in the range [7.1% - 10.1%]. 5 years projections were considered and growth rates in perpetuity were considered void.

As a result of these impairment tests as at 30 June 2018 and 31 December 2017, the detail of Impairments on Investments in Affiliated and Associated Companies is as shown in the table below:

	30 June 2018	31 December 2017	Variation
Interlog, SGPS, S.A.	-	(36 864)	36 864
Troiaresort, SGPS, S.A.	(11 140 826)	(11 140 826)	-
SC Assets, SGPS, S.A.	(25 577 659)	(25 577 659)	-
SC Finance BV	(263 698)	(263 698)	-
SC, Industrials, SGPS, S.A.	(10 792 934)	(10 792 934)	-
	(47 775 117)	(47 811 981)	36 864

OTHER NON-CURRENT ASSETS As at 30 June 2018 and 31 December 2017, other non-current assets are detailed as

	30 June 2018	31 December 2017

Loans granted
SC Assets, SGPS, S.A. Troiaresort, SGPS, S.A.	168 575 597 138 658 637	174 450 597 138 805 637
SC Finance BV	5 885 000	5 885 000
Solinca - Health & Fitness, S.A.	-	661 000
SC Fitness, S.A.	28 615 500	-
SC Hospitality, SGPS, S.A.	6 155 000	6 155 000
SC, Industrials, SGPS, S.A.	12 000 000	-

CAPWATT, SGPS, S.A.	40 000 000 399 889 734	- 325 957 234
Impairment
SC Assets, SGPS, S.A.	(11 640 970)	(11 640 970)
SC Finance BV	(462 650)	(462 650)
	(12 103 620)	(12 103 620)
Up-front fees not yet charged to income statement	205 243	276 547
	387 991 358	314 130 161

Loans to group companies interest at market rates and are repayable within a period exceeding one year. The interest rate as at 30 June 2018 stood, on average, at approximately 2.35%.

The deferred costs relate to the deferral of the financial charges associated with the bank loans obtained, by their due dates.

OTHER CURRENT ASSETS AND INCOME TAX As at 30 June 2018 and 31 December 2017, Other current assets and Income tax are made up as follows:

	30 June 2018	31 December 2017

Other debtors - Group	1 809 013	1 447 535
Loans granted	52 507 612	58 707 800
Other debtors	599 343 54 915 968	1 176 066 61 331 400

Accrued income	4 612 163	4 094 304

Deferred costs	250 610 4 862 773	222 532 4 316 836


Income tax withheld	1 872 554 61 651 294	1 639 594 67 287 830

The balance registered at Other debtors - Group is related to the values transferred from subsidiaries under the IRC regime (RETGS).

As at 30 June 2018 and 31 December 2017, the item Loans Granted is related to financial operations with the following subsidiaries:

	30 June 2018	31 December 2017

Loans granted SC Assets, SGPS, S.A.	7 104 402	73 000
SC Hospitality, SGPS, S.A.	1 471 325	454 000

CAPWATT, SGPS, S.A.	13 288 300	41 175 000
Inparvi, SGPS, S.A. SC, SGPS, S.A.	80 793 15 955 706	69 000 14 269 500
Solinca - Health & Fitness, S.A.	1 983 700	1 186 300
SC Fitness, S.A.	7 460 400	-
SC, Industrials, SGPS, S.A.	3 812 000	-

Troiaresort, SGPS, S.A.	1 350 985 52 507 612	1 481 000 58 707 800

Loans to group companies interest at market rates and are repayable within a period inferior to one year. The interest rate as at 30 June 2018 stood, on average, at approximately 1.36%.

The item Other Debtors includes as at 30 June 2018 the amount 585,435€ related to the settlement of the sale price of the stake in the company, Box Lines Navegação S.A., in previous years.

The amount recorded in the accrued income includes 4,557,900€ relating to interest on loans granted to subsidiaries as well as 54,263€ relating to commissions of guarantees given to subsidiaries.

Deferred costs include 211.947€ relating to bank charges, which are deferred over the loan period.

Income Tax Under current legislation, tax returns are subject to review and correction by the tax authorities for a period of four years (five years for Social Security), except if there have been tax losses or tax benefits, or ongoing tax inspections or claims. In these cases, and depending on the circumstances, the time limits are extended or suspended. In this way the Company tax return, from the years 2015 to 2018, could still be subject to review. However, in the opinion of the Company's Board of Directors, it is not expected that any correction relating to the said financial years will be significant for the financial statements as at 30 June 2018.

The Company is subject to the special regime for the taxation of groups of companies (RETGS) provided for in Article 69 and following of the IRC Code, integrating the taxation group, which is the mother company.

In the fiscal year 2018, the Company is subject to taxation on Corporate Income Tax at the normal rate of 21%, plus municipal taxes at a maximum rate of 1.5%.

In addition, on the part of the taxable profit of more than 1,500,000€ subject to and not exempt from Corporate Income Tax, the following state levy fees are levied: 3% over 1,500,000€ and less than 7,500,000€; 5% on the upper part to 7,500,000€ and up to 35,000,000€; and 7% that is levied on the part of the taxable income that exceeds

Under the terms of Article 88 of the Portuguese Income Tax Code, the company is also subject to autonomous taxation on a set of charges at the rates provided for in the

As at 30 June 2018 and 31 December 2017, the item Income tax is made up as follows:

31 December 2017
849 047
760 611
29 935
1 639 594
30 June 2018 1 134 843 863 935 (126 225) 1 872 554

DEFERRED TAXES Deferred tax assets and liabilities as at 30 June 2018 and 31 December 2017 can be detailed as follows, split between the different types of temporary differences:

	Deferred tax assets			Deferred tax liabilities
	30 June 2018	31 December 2017	30 June 2018	31 December 2017
Tax losses carried forward	16 764 699	16 764 699	-	-

The movements in deferred tax assets and liabilities for the periods ended 30 June 2018

	Deferred tax assets			Deferred tax liabilities
	30 June 2018	31 December 2017	30 June 2018	31 December 2017
	16 764 699	14 314 699	-	-
Opening balance	-	2 450 000	-	-
Tax losses carried forward Closing balance	16 764 699	16 764 699	-	-

In accordance with the tax statements presented by companies that recorded deferred tax assets arising from tax losses carried forward, as at 30 June 2018 and 31 December 2017, tax losses carried forward can be summarized as follows:

	30 June 2018			31 December 2017
	Tax losses	Deferred tax assets	To be used until	Tax losses	Deferred tax assets	To be used until

Generated in 2013	61 175	12 847	2018	61 175	12 847	2018
Generated in 2014	13 536 168	2 842 595	2026	13 536 168	2 842 595	2026
Generated in 2015	45 035 288	9 457 411	2027	45 035 288	9 457 411	2027
Generated in 2016	12 025 566	2 525 369	2028	12 025 566	2 525 369	2028
Generated in 2017	9 173 702	1 926 477	2022	9 173 702	1 926 477	2022
	79 831 899	16 764 699		79 831 899	16 764 699

The constitution of deferred tax assets was based on the analysis of the relevance of its recognition, notably as regards the possibility of their recovered, given the prospects for medium and long term of the company.

The deferred tax assets recognized resulting from fiscal losses are recorded to the extent that it is probable that taxable profit will occur in the future.

The valuation of deferred tax assets is based on the business plans of the Group companies, periodically reviewed and updated.

Since fiscal year 2014, most of the Group's subsidiaries, based in Portugal, are part of the perimeter of the taxed Corporate Group in accordance with the Special Taxation Regime for Company Groups (RETGS), whose parent company is the Sonae Capital, SGPS, S.A.

Gains generated by the application of this tax regime are allocated to Sonae Capital,

The analysis carried out on 30 June 2018, resulted that there is reasonable expectation of recovery of deferred tax assets recorded before their date of expiry.

CASH AND CASH EQUIVALENTS As at 30 June 2018 and 31 December 2017, cash and cash equivalents can be detailed as

	30 June 2018	31 December 2017
	-	-
Cash	406 308	171 848
Bank deposits	406 308	171 848
Cash and cash equivalents in the balance sheet
	-	-
Bank overdrafts Cash and cash equivalents in the cash flow statement	406 308	171 848

EQUITY The share capital of Sonae Capital, SGPS, S.A. both in June 2018 and December 2017 is represented by 250,000,000 ordinary shares, which do not have the right to a fixed

As at 30 June 2018, Sonae Capital, SGPS, S.A. holds 4,107,623 own shares representing 1.643% of the share capital (4,783,433 shares at 31 December 2017), recorded by 1,192,808€ (1,305,839€ at 31 December 2017) (Note 10).

RESERVES As at 30 June 2018 and 31 December 2017 the item Other Reserves can be detailed as

	30 June 2018	31 December 2017
	10 789 547	10 510 080
Legal reserves	148 360 229	157 176 745
Free reserves	132 638 253	132 638 253
Demerger reserve	1 192 808	1 305 839
Own shares reserve	292 980 837	301 630 917

Free Reserves: These reserves result from the transfer of the positive results obtained in retained earnings and can be distributed to shareholders provided they are not required

The overall value of the demerger reserve (Note 1), represents the difference between the book value of the stake in SC, SGPS, S.A. (382,638,253€) which was demerged from Sonae, SGPS, S.A. into the Company and the share capital of Sonae Capital, SGPS, S.A. (250,000,000€), which is comparable to the Legal Reserve, according to the Code of Commercial Companies, may not be distributed to the shareholders except in the event of liquidation of the Company, but may be used to absorb accumulated losses, after other reserves are exhausted, or can be incorporated into capital.

Legal Reserve: Under the law, at least 5% of annual net profit, should be allocated to the Legal Reserve until it represents 20% of the share capital. This reserve is not distributable except in the event of liquidation of the company, but can be used to absorb losses after the other reserves, or increase capital. On 30 June 2018 the value of this item amounts to 10,789,547€ (December 2017: 10,510,080€).

Reserve own shares: This reserve, established in accordance with Article 342 of the CSC, is the same amount of the own shares value held by the company. This reserve is unavailable while the own shares are in possession of the company.

LOANS As at 30 June 2018 and 31 December 2017, this item included the following loans:

	30 June 2018			31 December 2017

Bank loans	Current	Non Current	Current	Non Current
a) Sonae Capital SGPS - commercial paper	-	-	4 500 000	-
b) Sonae Capital SGPS - commercial paper	-	21 000 000	-	4 000 000
c) Sonae Capital SGPS - commercial paper	19 000 000	-	3 200 000	-
d) Sonae Capital SGPS - commercial paper	10 000 000	-	10 000 000	-
e) Sonae Capital SGPS - commercial paper	1 000 000	9 000 000	-	10 000 000
f) Sonae Capital SGPS - commercial paper	-	-	5 000 000	-
g)	5 000 000	10 000 000	-	-
Sonae Capital SGPS - commercial paper Up-front fees not yet charged to income statement	-	(205 243)	-	(276 547)
	35 000 000	39 794 757	22 700 000	13 723 453
Bank overdrafts (Note 8)	-	-	-	-
	35 000 000	39 794 757	22 700 000	13 723 453

Bond Loans h) Sonae Capital 2016/2021 Bonds	-	15 000 000	-	15 000 000
i) Sonae Capital 2014/2019 Bonds	42 500 000	-	-	42 500 000
Up-front fees not yet charged to income statement	-	(185 707)	-	(254 190)
	42 500 000	14 814 293	-	57 245 810

	77 500 000	54 609 049	22 700 000	70 969 264

j) Commercial paper programme, with subscription guarantee, issued on 31 December 2013 with automatic annual renewal until a maximum of seven years and six months, unless denounced by
either part. k) Commercial paper programme, with subscription guarantee, issued on 29 September 2017 and valid
until September 2021. l) Short term commercial paper programme, launched on 28 March 2008 and valid until 28 March 2018, with the option of prolonging the duration for another 10 years. This option was exercised and thus, the current maturity was prorogated for 28 March 2028. Placement with investors or financial institutions and guaranteed by committed credit lines with duration between six months and a year,
contracted through relationship banks. m) Commercial paper programme, with subscription guarantee, issued on 30 June 2017 with annual
renewal, unless denounced by either part. n) Commercial paper programme, with subscription guarantee, issued on 24 February 2017 valid until February 2023 with amortizations every six months beginning 2019.
o) Commercial paper programme, without subscription guarantee, issued on 20 December 2017 with annual renewal for issues placed with investors.
p) Commercial paper programme, with subscription guarantee, issued on 23 June 2016 valid for a 5-
year period, with annual amortizations and a 1-year grace period. q) Sonae Capital, SGPS, S.A., 2016/2021 bond loan in the amount of 15,000,000€, 5 years until maturity and a sole reimbursement on 29 July 2021, except if the Issuer exercise the Call Option. This bond loan bears interest every six months.
r) Sonae Capital, SGPS, S.A., 2014/2019 bond loan in the amount of 42,500,000€, 5 years until maturity and a sole reimbursement on 28 May 2019. This bond loan bears interest every six months.

The interest rate on bank loans and bonds in force on 30 June 2018 was on average

1.77% Bank loans pay interest rates that are indexed to the Euribor market rates of the period,

The nominal value of the loans have the following maturity dates:

	30 June 2018		31 December 2017
	Capital	Interest	Capital	Interest
N+1	77 500 000	(1 993 552)	22 700 000	(2 112 847)
N+2	7 000 000	(361 563)	52 500 000	(1 255 768)
N+3	8 000 000	(348 125)	-	(427 135)
N+4	37 000 000	(169 688)	19 000 000	(410 573)
N+5	3 000 000	-	-	(46 667)
After N+5	-	-	-	(2 917)
	132 500 000	(2 872 927)	94 200 000	(4 255 906)

OTHER CREDITORS

	30 June 2018	31 December 2017

Other creditors Group companies - Short term loans	15 844 200	47 849 000
Other creditors	866 158	719 841
	16 710 358	48 568 841

As at 30 June 2018 and 31 December 2017 the item loans granted is relative to financial operations granted to the following subsidiaries:

	30 June 2018	31 December 2017
Interlog, SGPS, S.A.	-	21 858 000
SC Industrials, SGPS, S.A.	-	9 347 000
SC For - Serv.de For. e Des. de Rec. Hum., Unip., Lda.	-	11 000
RACE, SGPS, S.A.	15 840 200	16 613 000
SC Hospitality, SGPS, S.A.	-	-
SC Fitness, S.A.	-	-
Solinca - Health & Fitness, S.A.	-	20 000

SC, SGPS, S.A.	4 000 15 844 200	- 47 849 000

Loans obtained from group companies bear interest at market rates and are repayable within one year. The interest rate as at 30 June 2018 was, on average, approximately

0.050%. Within the item Other Creditors – other creditors, there is included 820.998€ regarding transfers from subsidiaries of tax estimates under the special regime RETGS.

13. SUPLIERS, TAXES, OTHER NON CURRENT AND

CURRENT LIABILITIES

			30 June 2018
	Current	Non-Current	Current	Non-Current
Trade creditors	138 981	-	137 599	-
	-		-
Taxes payable - other taxes	43 040	-	50 069	-
Other current liabilities
Accruals:
Staff costs	506 023	168 327	750 007	287 354
Interest payable	312 640	-	308 166	-
Other accruals	54 068	-	73 158	-

Deferred income	3 406 876 138	- 168 327	4 769 1 136 100	- 287 354

As at 30 June 2018 and 31 December 2017, interest payable can be detailed as follows:

	30 June 2018	31 December 2017

Interest payable: Bank Loans	305 987	305 672

Group companies loans	6 654 312 640	2 494 308 166

As at 30 June 2018 and 31 December 2017, the Income tax and Other taxes can be

	30 June 2018	31 December 2017
Taxes payable - income taxes
Income taxes	-	-

Taxes payable - other taxes	22 059
Income taxation - amounts withheld VAT	89	27 300 69
	-
Social security contributions	20 892	22 700 -
Others	43 040	50 069

EXTERNAL SUPPLIES AND SERVICES As at 30 June 2018 and 2017, External Supplies and services can be detailed as follows:

	30 June 2018	30 June 2017
	(21 310)	(21 645)
Operational rents	(22 736)	(19 953)
Insurance costs	(14 887)	(26 274)
Travelling expenses	(681 034)	(558 944)
Services obtained	(29 336)	(43 514)
Other services	(769 304)	(670 329)

In services obtained, stands out the amounts related to fees from shared services, of 135,298€ (2017: 46,003€) and the item Holding costs with the amount of 397,854€ (2017: 165,831€), invoiced by subsidiary SC - Sociedade de Consultadoria, S.A.

STAFF COSTS As at 30 June 2018 and 2017, staff costs were made up as follows:

	30 June 2018	30 June 2017
	(414 789)	(607 493)
Governing bodies' remunerations	(141 144)	(292 961)
Staff and other sectors remunerations	(80 132)	(95 977)
Social security contributions	(10 000)	(53 019)
Other staff costs	(646 065)	(1 049 450)

In 2018 the average number of employees was 0 (zero) (2017: 1).

NET FINANCIAL EXPENSES AND INVESTMENT INCOME As at 30 June 2018 and 30 June 2017, Net Financial Expenses and Investment Income

	30 June 2018	30 June 2017
Interest payable and similar expenses

Interest arising from:	(178 699)	(135 748)
Bank loans	(966 329)	(976 367)
Bonds	(8 650)	(28 795)
Other	(635 820)	(738 253)
Other financial expenses	(1 789 497)	(1 879 163)

Interest receivable and similar income	4 526 554	5 527 075
Interest income	4 526 554	5 527 075
	2 737 057	3 647 912
Net financial expenses
Reversal of /and Impairment losses (Note 4.1)	-	-
Other income	38 897 405	19 208 415
Investment income	38 897 405	19 208 415

As at 30 June 2018, the amount mentioned in "Interest arising from other" refers in its

entirety to interest on current loans obtained from group companies. As at 30 June 2018, the amount mentioned in "Interest receivable and similar income"

includes interest on loans granted to group companies amounting to 4,526,554€. As at 30 June 2018, the amount mentioned in "Other financial expenses" refers to

commissions incurred with the assembly and management of bank loans and bonds. As at 30 June 2018, the amount mentioned in "Other income" refers to the debt update on the sale of the stake in the company, Box Lines Navegação, S.A. (12,076€), in previous years, income from participation in the Real Estate Hedge Fund WTC (1,137,575€), the liquidations of the participations in Interlog, SGPS, S.A. (27,071€) and Solinca - Health & Fitness, S.A. (12,287,350€) and the distribution of dividends of an amount totalling

17. OTHER OPERATIONAL PROFIT AND OTHER

OPERATIONAL EXPENSES As at 30 June 2018 and 2017, the items Other operational profit and expenses were as

	30 June 2018	30 June 2017

Other operating income	58 812	54 131
Other supplementary income - Comissions
Other	150 58 962	429 54 560

Other operating expenses
	(29 844)	(27 965)
Taxes	(374)	(1)
Other	(30 218)	(27 967)

18. TAXATION

As at 30 June 2018 and 2017, Taxation was made up as follows:

	30 June 2018
		30 June 2017
Current tax (Note 6)	368 592 368 592	531 375 531 375

As stated in Note 6, the Company is taxable according to the RETGS.

EARNINGS PER SHARE Earnings per share for the periods ended 30 June 2018 and 2017 were calculated taking into consideration the following amounts:

	30 June 2018	30 June 2017
Net profit
Net profit taken into consideration to calculate basic
earnings per share (Net profit for the period)	40 615 431	21 693 576
Net profit taken into consideration to calculate
	40 615 431	21 693 576
diluted earnings per share
Number of shares
Weighted average number of shares used to calculate
basic earnings per share	248 085 190	247 345 810

Earnings per share (basic and diluted)	0,163716	0,087705

COMPLIANCE WITH LEGAL REQUIREMENTS Art. 5 No. 4 of Decree-Law No. 495/88 of 30 December changed by art 1 of Decree-Law No. 318/94 of 24 December.

In the period ended 30 June 2018 there are no shareholders' loan contracts.

In the period ended 30 June 2018 short-term loan contracts were entered with the companies: Companhia Térmica Tagol, Lda.; Capwatt Maia-Heat Pow.,SA; Capwatt Martim Longo,SA; Capwatt Valde Caima-H.P,SA; Capwatt, SGPS, S.A; Capwatt ACE; Soltroia – Sociedade Imobil., S.A.; QCE-D.Fab.Equipamentos,SA,; RACE, S.A.; Soberana Invest.Imobil.SA; Troiamarket, S.A.; The House Ribeira Hotel S.A.; Soternix-Prod.Energia,ACE; Porto Palácio Hotel Exploração Hoteleira S.A.; Enerlousado-R.E.Unipessoal Lda; Capwatt Colombo H.P., S.A.; Atelgen – Prod. Energia ACE; Carvemagere – Man. E Energias Renováveis Lda; CTE – Central Térmica Estuário Lda; Capwatt Vale do Tejo H.P., S.A.; Capwatt Engenho Novo H.P., S.A.; Capwatt II Heat Power S.A; Capwatt III Heat Power S.A.; Imobeauty, S.A.; Troia Natura S.A.; Marvero Exp. Hotel. Imob., S.A.; Golftime – Golfe e Inv. Turisticos S.A.; Troiaresort S.A.; Tulipamar-Expl.Hoteleira Imob.SA; Imoresort - Sociedade Imobiliária, S.A.; Marmagno-Expl.Hoteleira Imob.,SA; Atlantic Ferries-Tráf.Loc,Flu.e Marít.SA; Marina de Tróia, S.A.; Aqualuz Tróia - Exploração Hoteleia e Imobiliária S.A. and Imopenínsula - Sociedade Imobiliária, S.A.

As at 30 June 2018, amounts due by affiliated companies can be summarized as follows:

Companies	Closing Balance

SC Assets, SGPS, S.A. Troiaresort, SGPS, S.A.	175 679 999 140 009 622
SC Finance BV	5 885 000
Solinca - Health & Fitness, S.A.	1 983 700
SC Hospitality, SGPS, S.A.	7 626 325
SC, Industrials, SGPS, S.A.	15 812 000
CAPWATT, SGPS, S.A.	53 288 300
Inparvi, SGPS, S.A.	80 793

SC, SGPS, S.A.	15 955 706 416 321 445

Loans and Short term loans granted

As at 30 June 2018, amounts due to affiliated companies can be summarized as follows:

Companies	Closing Balance

RACE, SGPS, S.A.	15 840 200 15 840 200

SUBSEQUENT EVENTS No significant events with impact on the financial statements, requiring further
APPROVAL OF THE FINANCIAL STATEMENTS These financial statements were approved by the Board of Directors and authorized for issue on 27 July 2018.

O Conselho de Administração

Paulo José Jubilado Soares de Pinho

Maria Cláudia Teixeira de Azevedo

Miguel Jorge Moreira da Cruz Gil Mata

AI Terminal

Samba Digital SGPS S.A

6003_ir_2018-08-24_735e5ec7-4046-4f07-86a2-52fabcf1fc8e.pdf

SONAE CAPITAL REPORT AND ACCOUNTS

PART I REPORT OF THE BOARD OF DIRECTORS

2. OVERALL PERFORMANCE

3. BUSINESS UNITS

3.1. ENERGY

3.2. INDUSTRIAL ENGINEERING

3.3. FITNESS

Profit and Loss Account - Fitness

3.5. REFRIGERATION & HVAC

3.6. TROIA RESORT - OPERATIONS

4. REAL ESTATE ASSETS

4.1. TROIA RESORT

4.2. OTHER REAL ESTATE ASSETS

5. BACKUP – CONSOLIDATED BALANCE SHEET

6. CORPORATE INFORMATION

6.2. SUBSEQUENT EVENTS

GLOSSARY

PART II APPENDIX TO THE REPORT OF THE BOARD OF DIRECTORS

Under the terms of Article 245, paragraph 1, c) of the Portuguese Securities Code

Article 447 of the Portuguese Companies Act and Article 14(7) of the Portuguese Securities Commission (CMVM) Regulation no.5/2008

Appendix required by Article 448 of the Portuguese Companies Act

Efanor Investimentos, SGPS, SA (1)

Pareuro, BV

Qualified Shareholdings

PART III CONSOLIDATED FINANCIAL STATEMENTS

SONAE CAPITAL, SGPS, S.A.

4. GROUP COMPANIES INCLUDED IN THE CONSOLIDATED

5. INVESTMENTS IN ASSOCIATED AND JOINTLY

7. CHANGES TO THE CONSOLIDATION PERIMETER

12. TRADE ACCOUNTS RECEIVABLE AND OTHER CURRENT

PART IV SEPARATED FINANCIAL STATEMENTS

SONAE CAPITAL, SGPS, S.A.

2.1 Basis of preparation

Impairment

13. SUPLIERS, TAXES, OTHER NON CURRENT AND

17. OTHER OPERATIONAL PROFIT AND OTHER

18. TAXATION

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