REPORT AND ACCOUNTS

PART IV – INDIVIDUAL FINANCIAL STATEMENTS

PART I REPORT OF THE BOARD OF DIRECTORS

CEO MESSAGE & MAIN HIGHLIGHTS "During the second quarter of the year, important milestones were taken in the implementation of the defined corporate strategy, based on: (i) the continuous improvement of our current businesses competitive position; (ii) the pursuit of new value creator business opportunities within the Group's competence areas; (iii) the sale of non-core/strategic assets; and (iv) the maintenance of a balanced capital structure according to the type of business and assets held by the Group.

In the quarter, total investment amounted to 34.5M€, aimed at improving the competitive position of each of our businesses with a special focus on the Energy segment, with the acquisition of an additional 15MW capacity.

In addition, although not yet visible in financial indicators, the acquisition of ADIRA materializes our strategic purpose of incorporating new value added generating businesses. ADIRA, a Portuguese based company, strongly focused on the international markets, leverages on the country's main assets and resources, the Portuguese based engineering know-how.

Our businesses' performance continued to show progresses, visible in terms of turnover and profitability, being especially notable the improvements in Fitness, Hospitality and Energy segments, already incorporating (although not in full) the recent acquisitions. Following the current trend, we continue to expect an overall good performance for our businesses, including the Refrigeration & HVAC segment in Portugal, for which the higher number of ongoing contracts allows us to foresee increased levels of activity for the forthcoming quarters. Regarding the sale of residential units in Troia, there was a notable recovery compared to the previous quarter and the number of booked contracts allows us to be comfortable about the performance in the next semester. In addition, concerning the sales of Real Estate Assets, although only one sales deed with significant amount was signed in the second quarter, the Promissory Purchase and Sale Agreements already signed in stock, provides good prospects for the current year.

Net Debt levels maintain a conservative capital structure taking into consideration the Group's type of assets. The distribution of dividends in the quarter and the recent acquisitions in Energy segment do not jeopardize this objective and the latter will allow for a significant improvement and higher stability of the Group's main financial indicators."

Cláudia Azevedo, CEO

Acquisition of ADIRA, an important milestone in the materialization of the Corporate
Strategy; Strong turnover growth in Fitness (+25.8%), Hospitality (+24.8%) and Energy (+18.6%)
segments; A stock of 14 Reservations/Promissory Purchase and Sale Agreements of residential units in Troia Resort, corresponding to 5.9M€. During the semester, 25 contract sales were signed, 2 of which, under the fractional model;
Booked Promissory Purchase and Sale Agreements of Real Estate Assets (excluding residential units in Troia) amounted to 14.48M€, in addition to the deeds signed in the
first six months amounting to 5.74M€; Backlog in Refrigeration & HVAC Portuguese operation, as at 30 June, amounts to
29.7M€, representing, approximately, 9 months of turnover; Integration of operations acquired during the quarter, namely: (i) a Cogeneration operation fueled by landfill biogas, with 1MW, acquired at the end of the first quarter, and (ii) 15MW of Renewable Energies, expanding the range of technologies operated, acquired in April but with a total impact on P&L account only in June, significantly increasing turnover (1.1M€ in 2Q17) and profitability (0.96M€ in 2Q17) of the Energy
segment, offering higher stability to the Group's financial indicators; Despite the high Capex amount (39.7M€) and the Dividends distribution (25M€), Net
Debt increased only 38.3M€ as a result of the cashflow from operations performance; Net Debt remains under control and adequate to the Group's business portfolio and type of assets: LTV of 15.6% and Net Debt/Ebitda of 2.93x.

2. OVERALL PERFORMANCE

The Group's consolidated turnover in 2Q17 amounted to 41.9M€, registering a slight decrease of 1.2% over the previous year. However, profitability performance was positive, with Ebitda

reaching 5.2M€ (+26.1%), being worth to highlight the: Improvement of the Hospitality segment's main operational indicators, namely Occupancy Rate (+7.3pp) and RevPar (+32.6%), registering a turnover growth of 24.8% and an Ebitda
break-even in the 2Q that usually only occurs in the 3Q; Fitness continued to show solid turnover growth (+25.8%), due to the continued increase of active members (+26%) and average monthly fees (+6.5% in 1H17). Lower level of Ebitda in 2Q17 compared to 2Q16 relates to the accounting of 7 fortnights in 2Q16, when in 2017,
occurred in the first quarter; Significant improvements in the Energy segment, with increases in both turnover (+18.6%) and Ebitda (+85.2%), to 3.58M€, already including the contribution of operations acquired,
"Lusobrisa" (2 months) and "Ventos da Serra" (1 month); Troia Resort registered a notable recovery when compared to previous quarter, having matched the number of sales deed compared to the same period of last year. Turnover decreased slightly by 0.7% due to a lower value/deed. During 2Q17, a total of 9 sales of residential units in Troia Resort were completed, compared to 5 signed in the previous year. As of today, 14 promissory purchase and sale agreements and reservations, corresponding to 5.9M€, remain in stock. It is forecasted for the next quarter the deeds
signature for a large part of these contracts; Related to Real Estate Assets we should note the sale of 'Vasco da Gama' Health Club for the amount of 4.7M€. It should be pointed out that PPSAs regarding a diverse portfolio of real estate assets are still in the portfolio totaling 14.5M€, forecasting, once again, a positive performance for the next quarters;

Ref. & HVAC registered an expected decrease of 17.8% in turnover, following the lower level of activity in domestic operation having also impacted Ebitda to negative 0.24M€. However, the outlook for the next quarters indicates positive prospective given the

number of contracts in backlog at the end of semester. Consolidated Net Results in the quarter amounted to positive 0.92M€, showing a decrease of 12.8M€ compared to the same period last year, mainly impacted by the sale of shareholdings in road concessionaires in the 2Q16. In addition, compared to the same period last year, the impacts were positive for: (i) the above mentioned Ebitda performance (+1.07M€); (ii) improve in Financial Results (+0.53M€), due to lower net debt level and lower financing costs; (iii) lower tax costs (+0.07M€); and (iv) Results from Investments due to badwill accounting related with one of the acquisitions completed in the quarter.

Capital Structure/Capex/Ratios
Million euro
Net Capital Employed	396.2	3864	$+2.5%$
Fixed Assets	311.6	2841	$+9.7%$
Non-Current Investments (net)	5.3	4.7	$+13.8%$
Working Capital	80.6	98.2	-18.0%
Capex (end of period)	39.7	12.7	$>100\%$
% Fixed Assets	13.1%	4.5%	+8.7 pp
Net Debt	1043	66 O	+579%
% Net Capital Employed	26.3%	17.1%	$+9.2$ pp
Debt to Equity	35.7%	20.6%	$+151$ pp
Net Debt excluding Energy	54.5	48.9	$+11.3%$
Capital Structure Ratios
Loan to Value (Real Estate)	15.6%	8.6%	$+70$ pp
Net Debt/EBITDA (recurrent)	2.93x	2.38x	$+0.55x$

Capex for the 1H17 amounted to 39.7M€, registering a significant increase of 36.7M€ over the previous year, mainly due to the investments in the Energy segment, namely the acquisitions of Renewable operations in the 2Q, in addition to the above mentioned acquisition of a cogeneration operation fueled by landfill biogas.
Free Cash Flow (levered) in 1H17, excluding dividends paid, was negative 15.1M€, as a result of the aforementioned investments, namely the acquisitions in the Energy segment which more than offset the positive contribution of cash flow from operations.

Consolidated Balance Sheet
Million euro	Jun 2017	Dec 2016	$\Delta$ 17/16
Total Assets	515.4	500.4	+30%
Tangible and Intangible Assets	271.4	246.3	$+10.2%$
Goodwill	40.3	37.8	$+6.5%$
Non-Current Investments	1.8	1.7	$+5.7%$
Other Non-Current Assets	29.8	29.4	$+1.3%$
Stocks	103.0	103.2	$-0.2%$
Trade Debtors and Other Current Assets	531	49.4	$+7.3%$
Cash and Cash Equivalents	15.5	32.2	-51.7%
Assets held for sale	0.5	$\overline{02}$	>100%
Total Equity	2919	320.4	$-8.9%$
Total Equity - Equity Holders of Sonae Capital	282.4	310.4	$-9.0%$
Total Equity - Non-Controlling Interests	9.5	99	-4.1%
Total Liabilities	223.5	180.0	$+24.2%$
Non-Current Liabilities	123.9	120.7	$+2.6%$
Non-Current Borrowings	97.6	94.3	$+3.6%$
Deferred Tax Liabilities	20.3	19.6	$+3.4%$
Other Non-Current Liabilities	6.0	6.8	$-12.1%$
Current Liabilities	99.6	59.3	+67.9%
Current Borrowings	22.2	4.0	>100%
Trade Creditors and Other Current Liabilities	75.6	545	$+38.7%$
Liabilities associated to assets held for sale	1.8	0.8	>100%
Total Equity and Liabilities	515.4	5004	+3.0%

Following the investments referred, Net Debt increased to 104.3M€ when compared to the end of 2016, maintaining an appropriate capital structure taking into consideration Sonae Capital's portfolio of assets and businesses.
Net Capital Employed increased 2.5% when compared to the year-end of 2016, to 396.2M€ driven by the increase of Fixed
Assets under management. As a result of Net Debt increase, the Debt to Equity ratio rose to 35.7%, +15.1pp compared to the
end of 2016. Loan To Value (LTV) and Net Debt/Ebitda of non-Real Estate businesses, of 15.6%, and 2.93x, respectively.

3. SEGMENTS PERFORMANCE

3.1. TROIA RESORT

FIGHT SHOP EQSS ACCOMING THOM ROSON
Million euro	2Q 2017	2Q 2016	$\triangle$ 17/16	1H 2017	1H 2016	$\Delta$ 17/16
Total Operational Income	7.59	7.47	$+1.6%$	10.31	12.04	$-14.4%$
Turnover	7.16	7.21	$-0.7%$	9.55	11.09	$-13.9%$
Other Operational Income	0.43	0.26	$+67.4%$	0.75	0.95	$-20.3%$
Total Operational Costs	$-7.50$	$-7.01$	$-7.0%$	$-11.21$	$-11.58$	$+3.2%$
Cost of Goods Sold	$-2.12$	$-0.54$	$<$ -100%	$-2.48$	$-1.76$	$-40.9%$
Change in Stocks of Finished Goods	$-0.99$	$-2.51$	$+60.7%$	$-1.18$	$-2.98$	$+60.4%$
External Supplies and Services	$-2.39$	$-2.36$	$-1.4%$	$-4.19$	$-4.08$	$-2.8%$
Staff Costs	$-1.12$	$-0.97$	$-15.6%$	$-2.05$	$-1.81$	$-13.1%$
Other Operational Expenses	$-0.88$	$-0.63$	$-39.8%$	$-1.30$	$-0.94$	$-38.5%$
EBITDA, excluding Guaranteed Income Provisions (1)	0.09	0.46	$-80.3%$	$-0.90$	0.46
Provisions for Guaranteed Income	$-0.11$	$-0.12$	$+0.9%$	$-0.17$	$-0.19$	$+8.2%$
EBITDA	$-0.02$	0.34		$-1.07$	0.28
EBITDA Margin (% Turnover)	$-0.3%$	4.7%	$-5.1$ pp.	$-11.2%$	2.5%	$-13.7$ pp
Capex	0.61	0.11	>100%	0.77	0.27	>100%
EBITDA-Capex	$-0.63$	0.23		$-1.84$	0.00

During 2Q17, 9 deeds of residential units in Troia Resort were signed (11 in the semester), an increase from the 5 registered in 2Q16. As a result of the good sales performance, 14 promissory purchase and sale agreements and reservations, amounting to 5.9M€, remain
in stock. As of June 30, 2017, 386 sales deeds on residential units of the Troia Resort complex had
been signed. Turnover in the semester amounted to 9.55M€, 13.9% below 1H16 fully due to lower average value per deed, once operations that support the Resort continued to present a
very positive performance. Capex for the period includes the turn back of an asset evaluated for 0.37M€ (related to a property swap deed not included in the figures above). Excluding that effect Capex has

3.2. FITNESS

Million euro	2Q 2017	2Q 2016	$\triangle$ 17/16	1H 2017	1H 2016	$\Delta$ 17/16
Total Operational Income	5.65	4.50	$+25.5%$	11.60	8.69	$+33.5%$
Turnover	5.60	4.45	$+25.8%$	11.48	8.59	+33.6%
Other Operational Income	0.05	0.05	2.6%	0.12	0.09	$+24.5%$
Total Operational Costs	$-5.24$	$-3.88$	$-351%$	$-10.29$	$-768$	-33 9%
Cost of Goods Sold	$-0.04$	$-0.03$	-58.2%	$-0.09$	$-0.04$	901%
External Supplies and Services	$-3.29$	$-2.35$	-40.2%	$-6.26$	-4.63	-35.4%
Staff Costs	171	$-1.27$	-34.3%	-3.44	$-2.51$	-371%
Other Operational Expenses	$-019$	$-0.23$	$+16.1%$	$-0.50$	$-0.50$	$+0.7%$
EBITDA	0.41	0.62	-34.3%	1,31	1.01	$+30.2%$
EBITDA Margin (% Turnover)	73%	14.0%	$-67$ pp	114%	11.7%	$-0.3$ pp
Capex	0.45	0.37	$+23.3%$	0.98	0.62	+57.0%
EBITDA-Capex	$-0.04$	0.26		0.33	0.38	$-13.1%$
# Health Clubs in Operation	17	15	$+2$	17	15	$+2$

Maintenance of the positive performance and strengthening the competitive position reflected in the increased number of active members (+26.4%), as well as the positive evolution of the average monthly fees (+6.5%). As a result, turnover increased
significantly 33.6% over the same period last year. Performance at the turnover level is also reflected in the EBITDA performance, which improved 30.2% compared to 1H16 to 1.31M€. The decrease registered in 2Q17 when compared to the same period last year refers to the accounting of 7 fortnights in 2Q16
when in 2017 it happened in the 1Q. During the year, the focus on the competitive position improvement will be kept, looking for additional opportunities to increase the number of fitness clubs in operation. This is already reflected in the Capex increase over the last quarters compared to the
corresponding periods of the previous year. Consequently, the investment in the opening of new clubs, following a capital light approach, is at an accelerated pace, which can be seen by the 17 Solinca's health clubs operating at the end of the semester (2 new openings planned for the 3Q: 'Constituição - Oporto' and 'Rio Tinto').

3.3. HOSPITALITY

The main operational indicators continue to show favorable evolutions, with an improvement in the overall occupancy rate and RevPAR, in the semester, of 6.4pp and 28.4%, respectively. It should be noted that all operations increased RevPAR when compared to the same period last year, evidencing the positive dynamics of the sector in
general and of this business segment performance in particular. As a result, both 1H17 turnover (+25.4%) and EBITDA (+44.2%) show considerable growth
rates. It should be highlighted the positive EBITDA reached in 2Q17, an important milestone in the segment's history.
Excluding rents, it should be underlined that the Hospitality segment's EBITDAR amounted to 1.3M€ in the 2Q17, an improvement of almost the double over the 2Q16 figure. Pointing out the turnover seasonality in Troia, the first and fourth quarters usually register negative EBITDAR that are more than compensated by the positive results of the
second and mainly the third quarters' activity. Despite the investments that have been made in the improvement of existing infrastructures, namely in the Aqualuz Troia Unit, Capex has remained at controlled levels, allowing for a 49.2% improvement in Ebitda-Capex.

3.4. ENERGY

Profit and Loss Account - Energy
Million euro	2Q 2017	2Q 2016	$\triangle$ 17/16	1H 2017	1H 2016	Δ
Total Operational Income	11.66	9.87	$+18.1%$	21.59	21.62
Turnover	11.58	9.77	+18.6%	21.37	21.51	$\blacksquare$
Other Operational Income	0.08	0.10	$-22.9%$	0.22	0.12
Total Operational Costs	$-8.08$	$-7.94$	$-1.8%$	$-15.91$	$-17.33$
Cost of Goods Sold	$-6.09$	$-619$	$+17%$	$-11.81$	13.67	$\ddot{}$
External Supplies and Services	$-1.11$	$-113$	$+17%$	$-243$	219
Staff Costs	$-0.58$	$-0.59$	$+2.8%$	$-117$	$-127$
Other Operational Expenses	$-0.31$	$-0.03$	$< 100\%$	$-0.51$	$-0.21$	$\leftarrow$
EBITDA	3.58	193	+85.2%	568	4 2 9	$+3$
EBITDA Margin (% Turnover)	30.9%	19.8%	$+111$ pp	26.6%	20.0%	$+$ $\epsilon$
Capex	34 88	$-0.01$		38 41	0.20	$\,>\,$
EBITDA Capex	$-31.30$	1.95		$-32.73$	4.09
Total Capacity (MW)	725	628	$+15.4%$	725	62.8	$+$
Owned & Operated	62.3	52.6	$+18.4%$	62.3	526	$+$
Operated (not consolidated)	10.2	10.2	$+0.0%$	10.2	10.2	$\overline{+}$

In 2Q17 it is already considered the contributions related to the acquisition of a Cogeneration operation fueled by landfill biogas, at the end of 1Q17, and to the acquisition of 15MW of Renewables assets at the end of April. These acquisitions translate an increase to 73MW in owned or operated capacity.
Compared to the same period last year, we should consider the discontinuation of an 8MW Cogeneration plant in the 1Q16, and no further discontinuations are expected for the next 9 quarters (4Q19).
As a result of the mixed entries/exits operations and its respective contributions, turnover recorded an increase of 18.6% in the quarter and EBITDA rose 85.2% to 3.6M€. It should be reinforced the continued performance improvement over last quarters in a row revealing the improvement and sustainability of the current recovery trend.
It is worth to note, in the quarter, the contribution of the operations acquired in 2017: 1.1M€ and 0.96M€ in turnover and Ebitda respectively.
Capex amounted to 34.88M€ mainly related to the above-mentioned acquisitions regarding Renewable operations.

3.5. REFRIGERATION & HVAC

Million euro	2Q 2017	2Q 2016	$\Delta$ 17/16	1H 2017	1H 2016	Δ
Total Operational Income	11.07	14.16	$-21.8%$	23 21	28.02
Turnover	11.36	13.83	$-17.8%$	23 27	2754
Other Operational Income	$-0.29$	0.33		$-0.07$	048
Total Operational Costs	$-11.31$	13.54	$+16.5%$	$-23.04$	$-26.71$	÷
Cost of Goods Sold	$-5.56$	$-747$	$+25.6%$	$-10.54$	$-1318$	$+2$
Change in Stocks of Finished Goods	1.25	265	-52 9%	1.71	363	-!
External Supplies and Services	-392	$-5.76$	$+319%$	-793	$-11.40$	$+$ 3
Staff Costs	$-2.72$	$-2.74$	$+0.4%$	$-574$	-533
Other Operational Expenses	$-0.35$	$-0.23$	-541%	$-0.53$	$-0.43$	$\bullet$
EBITDA	$-0.24$	0.62		0.17	1.31	-1
EBITDA Margin (% Turnover)	$-21%$	4.5%	$-6.6$ pp	0.7%	48%	$-4$
Capex	0.03	0.01	>100%	0.09	0.06	$+5$
EBITDA-Capex	$-0.28$	0.61		0.08	1.25	-9

Turnover in 1H17 registered a decline of 15.5% when compared to the same period last year due to: (i) a decrease in the Refrigeration activity due to the delay in starting up some planned works; and (ii) the delivery, during 2016, of an important international
project that positively influenced the previous year. It should be noted that the backlog on the Portuguese operation, at the end of the period, amounted to 29.7M€, representing approximately 9 months of turnover, indicating a recovery in activity levels for the coming quarters particularly in the
Refrigeration segment. Following Top Line performance, EBITDA ascended to 0.17M€ naturally recording a decrease of 86.7% when compared to 1H16, and reaching a 0.7% margin, 4.0pp below the

3.6. OTHER 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 the Sonae Capital Group, except the units already developed and in commercialization in the Troia Resort and the assets held by the

As at 30 June 2017, the CE in this set of real estate assets amounted to 194.8M€, which are evaluated in 300.9M€, according to the valuation made at the end of the previous year by the independent reference entity Cushman &
Wakefield; In 1H17 deeds were signed over 3 city flats, 1 plot of land in Ramalde - Porto and the 'Vasco da Gama'
HC totaling 5.9M€; and There are additional 14.48M€ of PPSAs signed over a set of assets indicating a positive forecast for the coming quarters.

4. CORPORATE INFORMATION

4.1. CORPORATE INFORMATION 2Q17 On April 27, 2017, Sonae Capital, SGPS, SA has executed a purchase and sale agreement for the acquisition of 100% of the share capital and voting rights of the company Ventos da Serra – Produção de Energia, S.A., that owns and operates a photovoltaic plant with installed capacity of 10MW, located at Ferreira do Alentejo, for a global price of 29.1M€. Subsequently, on 5 June this transaction obtained the declaration of non-opposition by

the Portuguese Competition Authority. Additionally the Company acquired a wind farm located in Loures and Arruda dos

Vinhos, with 5 MW of installed capacity, for the total amount of 5.4M€. As a result, Sonae Capital's portfolio of cogeneration and renewable energy plants (solar and wind) has been increased by two new units, with the installed electrical capacity owned or operated by the Group totaling 73MW.

On April 28, 2017, at the Shareholders' General Meeting, among other proposals, a gross dividend distribution of 0.10€ per share was approved. This dividend became available for payment on 26 May and the share traded, as of 24 May, without the right to the dividend (ex-dividend).
On June 09, 2017, Sonae Capital, SGPS, SA entered into a sale and purchase agreement for the acquisition of 100% of the share capital and voting rights of the company "ADIRA – Metal Forming Solutions, SA" and its subsidiary "Guimadira". This operation is subject to prior notification to the Portuguese Competition Authority (AdC) in accordance with the applicable law, and consequently will only become effective following a nonopposition decision from AdC and once all conditions precedent are fulfilled.

4.2. SUBSEQUENT CORPORATE EVENTS On July 25, 2017, following the declaration of non-opposition by the Portuguese Competition Authority, Sonae Capital, SGPS, SA announced the effectiveness of the acquisition of the company "ADIRA – Metal Forming Solutions, SA" and its subsidiary

METHODOLOGICAL NOTES The consolidated financial statements presented in this report are non-audited and have 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 Union.

With the aim of continuing to improve the quality and transparency of the information provided, not only at the Consolidated level, but also, at each Business Units level, and aligned with the best market practices, the international operations (Angola and Mozambique) of the Refrigeration & HVAC segment are now considered as assets held for sale and therefore their contribution to the consolidated results is recognized as discontinued operations. In order to maintain the information comparability, the 2016 figures are presented in appendix according to this new reality.

This document is a translation from the Portuguese original version.

GLOSSARY

HVAC = Heating, Ventilation and Air Conditioning.
Operational Cash Flow = EBITDA Capex.
PPSA = Promissory Purchase and Sale Agreement.
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 + Rents for buildings.
Net Debt = Non-Current Loans + Current Loans Cash and Cash Equivalents –
Current Investments. Capex = Investment in Tangible and Intangible Assets.
Gearing: Debt to Equity = Net Debt / Equity.
Loan to Value = Net Debt of real estate assets / Real estate assets Valuation.

APPENDIX

Consolidated Profit and Loss Account
Million euro	1Q 2016	2Q 2016	3Q 2016	4Q 2016	1Q 2017	2Q 2017
Total Operational Income	3759	43.00	52.71	9725	34 31	43.14
Turnover	36.86	42.41	51.73	59.58	33.64	41.90
Troia Resort	388	721	9.33	1070	239	716
Hospitality	210	434	735	3.21	267	541
Fitness	414	4.45	460	489	5.88	5.60
Energy	11.74	9.77	8.29	8.43	9.79	11.58
Refrigeration & HVAC	13.71	1383	21.45	15.84	1191	11.36
Others & Eliminations	1.28	281	0.72	16.51	100	0.78
Other Operational Income	0.73	0.59	0.97	3767	0.66	1.24
EBITDA, excluding Guaranteed Income Provisions (1)	1.47	4 21	8.20	16.78	0.59	5.28
Troia Resort	0.01	0.46	328	13.82	$-0.99$	0.09
Hospitality	176	$-0.59$	1.40	136	154	0.24
Fitness	0.38	0.62	0.78	0.37	0.90	0.41
Energy	2.36	1.93	1.73	178	210	3.58
Refrigeration & HVAC	0.69	0.62	0.36	0.58	0.42	$-0.24$
Others & Eliminations	$-0.21$	1.17	0.64	1.58	$-0.30$	1.20
Provisions for Guaranteed Income	$-0.07$	$-0.12$	$-0.08$	$-0.09$	0.06	$-0.11$
EBITDA	140	4.09	8.12	16.69	0.53	5.16
Amortization & Depreciation	$-3.90$	$-3.97$	$-397$	$-396$	$-407$	$-417$
Provisions & Impairment Losses	$-0.01$	$-0.05$	0.00	0.42	0.29	0.03
Non-recurrent costs/income (2)	0.38	0.62	$-0.37$	0.21	$-0.24$	0.16
EBIT	$-2.89$	0.70	3.79	13 36	$-3.49$	113
Net Financial Expenses	173	$-168$	158	$-1.15$	$-1.00$	$-115$
Investment Income and Results from Assoc. Undertaking	105	15.32	1.81	$\overline{150}$	0.07	193
EBT	$-3.57$	14 34	4.02	10.71	$-4.42$	1.90
Taxation	016	0.54	043	$-4.99$	$-0.28$	$-0.47$
Net Profit - Continued Businesses	$-341$	1380	359	572	$-470$	144
Net Profit - Discontinued Businesses	$-0.47$	$-0.10$	$-0.21$	$-0.23$	$-0.15$	$-0.52$
Net Profit - Total	$-3.88$	13.70	338	5.50	-4.85	0.92
Attributable to Equity Holders of Sonae Capital	-419	13 33	312	533	$-5.05$	0.57
Attributable to Non-Controlling Interests	0.31	0.37	0.26	0.16	0.20	0.34

PART II APPENDIX TO THE REPORT OF

Report of the Board of Directors

REPORT AND ACCOUNTS – JUNE 2017 Appendix to the Report of the Board of Directors

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

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 the first half of 2017 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, 28 July 2017

Duarte Paulo Teixeira de Azevedo

Álvaro Carmona e Costa Portela

Francisco de La Fuente Sánchez

Paulo José Jubilado Soares de Pinho

Maria Cláudia Teixeira de Azevedo

Ivone Pinho Teixeira

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	Balance as at
						30.06.2017	30.06.2017
Belmiro Mendes de Azevedo (**) Efanor Investimentos, SGPS, SA (1) Sonae Capital, SGPS, SA	Date	Quantity	Av. Price €	Quantity	Av. Price €	Dominant	Quantity 837,000
Maria Margarida Carvalhais Teixeira de Azevedo (**) Efanor Investimentos, SGPS, SA (1) Sonae Capital, SGPS, SA						Minority	1,862
Duarte Paulo Teixeira de Azevedo () (*) Efanor Investimentos, SGPS, SA (1) Migracom, SA (2)						Minority Dominant
Maria Cláudia Teixeira de Azevedo () () (**) Efanor Investimentos, SGPS, SA (1) Linhacom, SA (3)						Minority Dominant
Sonae Capital, SGPS, SA Ivone Maria Pinho Teixeira da Silva () (**) Sonae Capital, SGPS, SA	31.03.2017 31.03.2017	111,390 110,070	0.842 0.842				280,495 110,070
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 () (**)

				Position as at	Balance as at 30.06.2017
Date	Quantity	Purchases Av. Price €	Sales Quantity Av. Price €	30.06.2017	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 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 2017 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 share capital of Sonae Capital, SGPS, SA:

Number of shares as at 30.06.2017

Efanor Investimentos, SGPS, SA (1) Sonae Capital, SGPS, SA 88,859,200

Pareuro, BV Dominated

Pareuro, BV

Sonae Capital, SGPS, SA 66,600,000

(1) Belmiro Mendes de Azevedo is, under the terms of paragraph b number 1 of Article 20 and number 1 of Article 21 of the Portuguese Securities Code, the "ultimate beneficial owner", as he is the controlling shareholder of Efanor Investimentos, SGPS, SA and the latter wholly owns Pareuro BV.

REPORT AND ACCOUNTS – JUNE 2017 Appendix to the Report of the Board of Directors

Qualified Shareholdings

Shareholders holding more than 2% of the share capital of Sonae Capital, SGPS, SA,

Shareholder	Nr. of Shares	% of Share Capital	% of Voting Rights
Efanor Investimentos, SGPS, S.A. (1)
Directly Owned	88,859,200	35.544%	36.237%
Through Pareuro, BV (controlled by Efanor)	66,600,000	26.640%	27.160%
Through Belmiro Mendes de Azevedo (Chairman of the Board of Directors of Efanor)	837,000	0.335%	0.341%
Through Maria Margarida Carvalhais Teixeira de Azevedo (Member of the Board of	1,862	0.001%	0.001%
Directors of Efanor) Through Maria Cláudia Teixeira de Azevedo (Member of the Board of Directors of	280,495	0.112%	0.114%
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	156,783,719	62.713%	63.937%

Argos Funds Total attributable	5,181,429 5,181,429	2.073% 2.073%	2.113% 2.113%

(1) Belmiro Mendes d e Azevedo is, under the terms of Article 20(1)(b) and of Article 21(1) of the Portuguese Securities Code, the "ultimate beneficial owner", a s he is the controlling shareholder of Efanor Investimentos, SGPS, SA and the latter wholly owns

PART III CONSOLIDATED FINANCIAL

REPORT AND ACCOUNTS – JUNE 2017

Consolidated Financial Statements

(Amounts expressed in euro)

ASSETS	Notes	30-06-2017	31-12-2016
NON-CURRENT ASSETS:
Tangible assets	8	260,760,477	238,784,870
Intangible assets	8	10,590,904	7,615,431
Goodwill	9	40,282,461	37,841,090
Investments in associated companies and joint ventures	5	1,314,696	1,234,900
Other investments	6	497,020	478,855
Deferred tax assets	13	27,658,021	27,380,258
Other non-current debtors	10	2,145,732	2,036,476
Total non-current assets		343,249,311	315,371,880
CURRENT ASSETS:
Inventories	11	103,040,405	104,511,954
Trade account receivables and other current assets	12	53,066,822	47,746,534
Cash and cash equivalents	14	15,535,382	32,747,208
Total Current Assets		171,642,609	185,005,696

Assets held for sale		486,188	-

TOTAL ASSETS		515,378,108	500,377,576

EQUITY AND LIABILITIES
EQUITY:
Share capital	15	250,000,000	250,000,000
Own Shares	15	(1,305,839)	(1,404,226)
Reserves and retained earnings	15	38,147,226	44,241,791
Profit/(Loss) for the year attributable to the equity holders of Sonae Capital		(4,475,984)	17,594,199
Equity attributable to the equity holders of Sonae Capital		282,365,403	310,431,764
Equity attributable to non-controlling interests	16	9,516,879	9,925,965
Total Equity		291,882,282	320,357,729

NON-CURRENT LIABILITIES:
Loans	17,18	97,612,429	94,262,228
Other non-current creditors	19	2,928,232	3,751,701
Deferred tax liabilities	13	20,299,551	19,635,287
Provisions	22	3,079,824	3,079,824
Total Non-Current Liabilities		123,920,036	120,729,040
CURRENT LIABILITIES:
Loans	17	22,218,422	4,473,445
Trade creditors and other current liabilities	21	71,756,379	50,878,346
Provisions	22	3,795,543	3,939,016
Total Current Liabilities		97,770,344	59,290,807

TOTAL LIABILITIES		221,690,380	180,019,847

Liabilities associated with assets held for sale		1,805,446	-

TOTAL EQUITY AND LIABILITIES		515,378,108	500,377,576

(Amounts expressed in euro)

	Notes	30-06-2017	30-06-2016

Sales		39,964,949	32,024,267
Services rendered		32,882,845	46,195,682
Other operating income		2,715,815	2,283,453
Cost of sales		(23,618,822)	(28,638,083)
Changes in stocks of finished goods and work in progress		(418,058)	(2,340,712)
External supplies and services		(26,026,509)	(26,059,941)
Staff costs		(17,852,399)	(15,875,909)
Depreciation and amortisation		(8,238,041)	(7,868,236)
Provisions and impairment losses (Increases)/Decreases		176,754	(575,791)
Other operating expenses		(1,942,560)	(1,334,652)
Operational profit/(loss)		(2,356,026)	(2,189,922)
Financial Expenses		44,173	477,969
Financial Income		(2,204,418)	(3,890,769)
Net financial income / (expenses)		(2,160,245)	(3,412,800)
Profit/(Loss) in associated and jointly controlled companies	5	193,872	111,399
measured using the equity method
Investment income Profit/(Loss) before taxation		1,808,237 (2,514,163)	16,256,573 10,765,250

taxation	26	745,664 -	377,046 -
Profit/(Loss) for the year - continued operations		(3,259,827)	10,388,204
Profit/(Loss) for the year - discontinued operations		(670,456)	(571,685)

Profit/(Loss) for the year	27	(3,930,283)	9,816,519
Attributable to: Equity holders of Sonae Capital		(4,475,984)	9,139,503
Non-controlling interests	16	545,703	677,016

Profit/(Loss) per share - continued operations
Basic Diluted	29 29	(0.015385) (0.015385)	0.039358 0.039358

Profit/(Loss) per share - discontinued operations
Basic	29	(0.002711)	(0.002317)
Diluted	29	(0.002711)	(0.002317)

FOR THE 2ndQUARTERS OF 2017 AND 2016

	Notes	nd 2 QUARTER 2017 1	nd 2 QUARTER 2016 1

Sales		27,394,744	6.364.210
Services rendered		12,208,701	36.050.053
Other operating income		1,891,270	1.199.910
Cost of sales		(12,496,634)	(14.732.382)
Changes in stocks of finished goods and work in progress		26,759	(1.791.025)
External supplies and services		(13,784,207)	(13.898.626)

Staff costs		(8,923,210)	(7.892.473)
Depreciation and amortisation		(4,165,338)	(3.967.987)
Provisions and impairment losses (Increases)/Decreases		(23,954)	(209.726)
Other operating expenses Operational profit/(loss)		(996,260) 1,131,872	(420.623) 701.331

Financial Expenses		(25,620)	277.024
Financial Income		(1,130,589)	(1.959.229)
Net financial income / (expenses) Profit/(Loss) in associated and jointly controlled companies measured using	5	(1,156,209) 146,773	(1.682.205) (938.797)
the equity method
Investment income Profit/(Loss) before taxation		1,780,641 1,903,077	16.256.574 14.336.903
taxation	26	466,620	540.283

Profit/(Loss) for the year - continued operations Profit/(Loss) for the year - discontinued operations		1,436,457 (518,498)	13.796.620 (98.572)

Profit/(Loss) for the year	27	917,959	13.698.048
Attributable to:
Equity holders of Sonae Capital Non-controlling interests	16	573,392 344,567	13.332.648 365.400

Profit/(Loss) per share - continued operations
Basic Diluted	29 29	0.004425 0.004425	0.024281 0.024281

Profit/(Loss) per share - discontinued operations
Basic	29	(0.002096)	(0.004234)
Diluted	29	(0.002096)	(0.004234)

The accompanying notes are part of these financial statements.

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

SONAE CAPITAL, SGPS, SA
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2017 AND 2016
(Amounts expressed in euro)
	30-06-2017	30-06-2016
Consolidated net profit/(loss) for the period	(3,930,283)	9,816,519
Items that may be reclassified subsequently to net profit / (loss):
Changes in the currency translation differences	(45,052)	50,530
Share of other comprehensive income of associates and joint ventures accounted for by the equity method (Note 5)	-	7,381,842
Change in the fair value of cash flow hedging derivatives	1,366	23,714
Tax related to other comprehensive income captions	-	(2,869)
Other comprehensive income for the period - continued operations Outro rendimento integral do período - discontinued operations	352 (44,038)	7,301,102 152,115

Total comprehensive income for the period Attributable to: Equity holders of Sonae Capital Non-controlling interests	(3,973,969) (4,491,595) 517,626	17,269,736 16,593,997 675,739
The accompanying notes are part of these financial statements.

SONAE CAPITAL, SGPS, SA

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SECOND QUARTERS OF 2017 AND 2016
(Amounts expressed in euro)
	nd 2 Quarter 2017 1	nd 2 Quarter 2016 1
Consolidated net profit/(loss) for the period	917,960	13,698,048
Items that may be reclassified subsequently to net profit / (loss):
Changes in the currency translation differences	24,439	(60,506)
Share of other comprehensive income of associates and joint ventures accounted for by the equity method (Note 5)	-	7,340,797
Change in the fair value of cash flow hedging derivatives	-	17,780
Tax related to other comprehensive income captions	-	(1,623)
Other comprehensive income for the period - continued operations Other comprehensive income for the period - discontinued operations	4,561 19,878	7,272,295 24,423

Total comprehensive income for the period Attributable to: Equity holders of Sonae Capital	942,399 603,573	20,994,766 20,643,567
Non-controlling interests	338,826	351,198
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 2017 Consolidated Financial Statements

SONAE CAPITAL, SGPS, SA

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(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 and Retained Earnings	Subtotal Reserves and Retained Earnings	Net Profit/(Loss)	Total	Non Controlling Interests	Total Equity
Balance as at 1 January 2016	250,000,000	(1,426,791)	132,638,253	(23,350)	-	(11,956)	(80,993,753)	51,609,194	(294,678)	299,887,725	10,247,125	310,134,850
Total consolidated comprehensive income for the period	- -	- -	- -	- 51,807	- -	- 23,714	- 7,378,973	- 7,454,494	- 9,139,503	- 16,593,997	- 675,739	- 17,269,737
Appropriation of profit of 2015: Transfer to legal reserves and retained earnings	- -	- -	- -	- -	- -	- -	- (294,678)	- (294,678)	- 294,678	- -	- -	- -
Dividends paid (Acquisition)/Sales of own shares	- -	- 22,565	- -	- -	- -	- -	(14,669,026) -	(14,669,026) -	- -	(14,669,026) 22,565	(1,425,614) -	(16,094,640) 22,565
Changes in the percentage of capital held in affiliated companies Other changes	- -	- -	- -	- -	- -	- -	119,266 93,732	119,266 93,732	- -	119,266 93,732	(119,266) -	- 93,732
Balance as at 30 June 2016	250,000,000	(1,404,226)	132,638,253	28,457	-		11,758 (88,365,486)	44,312,982	9,139,503	302,048,259	9,377,984	311,426,244
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	-	-	-	-	-	-	525,711	525,711	-	525,711	-	525,711
Balance as at 30 June 2017	250,000,000	(1,305,839)	132,638,253	(4,099)	-		6,370 (94,493,298)	38,147,226	(4,475,984)	282,365,403	9,516,879	291,882,282

(Amounts expressed in euro)

	Notes	30-06-2017	30-06-2016	nd 2 Quarter 2017 1	nd 2 Quarter 2016 1
OPERATING ACTIVITIES:

Cash receipts from trade debtors		74,556,202	82,025,333	43,777,127	46,576,062
Cash receipts from trade creditors		(45,966,880)	(52,110,016)	(23,298,240)	(29,979,881)
Cash paid to employees		(17,276,536)	(15,851,967)	(8,858,780)	(8,623,980)
Cash flow generated by operations		11,312,786	14,063,350	11,620,108	7,972,201
Income taxes (paid) / received		(454,666)	(356,608)	(298,075)	(193,329)
Other cash receipts and (payments) relating to operating activities		2,609,938	448,933	4,029,843	855,049
Discontinued operations			(1,117,526)		(175,007)
Net cash from operating activities (1)		13,468,058	13,038,149	15,351,876	8,458,914
INVESTMENT ACTIVITIES:

Cash receipts arising from:
Investments		697,913	600,782	617,953	600,215
Tangible assets		4,312,788	1,414,708	3,903,775	318,066
Intangible assets		11	49,089	11	49,089
Subsidies		44,209	-	44,198	-
Interest and similar income Dividends		91,952	163,383	31,427	49,162
Others		187,652	194,419	114,074	194,419
Changes in consolidation perimeter (companies in)		6,392 2,803,838	- -	4,944 2,803,838	- -
		8,144,755	2,422,381	7,520,220	1,210,951
Cash Payments arising from:					-
Investments		(28,715,339)	(138,229)	(27,042,636)	(132,290)
Tangible assets		(3,696,759)	(2,846,621)	(2,184,352)	(1,328,454)
Intangible assets		(634,672)	(193,411)	(310,592)	(50,680)
Loans granted		(33,860)	(41,503)	(3,818)	-
		(33,080,630)	(3,219,764)	(29,541,398)	(1,511,424)
Discontinued operations			8,520		3,623
Net cash used in investment activities (2)		(24,935,875)	(788,863)	(22,021,178)	(296,850)
FINANCING ACTIVITIES:

Cash receipts arising from:
Loans obtained		45,885,506	68,854,596	43,673,381	38,128,299
Sale of own shares		98,387	144,043	98,387	144,043
Others		-	-	-	-
		45,983,893	68,998,639	43,771,768	38,272,342
Cash Payments arising from:
Loans obtained Interest and similar charges		(24,318,548)	(92,821,342)	(2,165,737)	(29,532,486)
Dividends		(2,516,934)	(4,203,896)	(1,705,854)	(2,380,423)
		(24,844,957) (51,680,439)	(15,987,705) (113,012,943)	(24,844,957) (28,716,548)	(15,831,455) (47,744,364)
Discontinued operations			170,539		20,348
Net cash used in financing activities (3)		(5,696,546)	(43,843,765)	(15,055,220)	(9,451,674)

Net increase in cash and cash equivalents (4) = (1) + (2) + (3)		(17,164,363)	(31,594,479)	8,385,918	(1,289,610)
Effect of foreign exchange rate		31,694	(2,482)	25,584	(2,330)
Cash and cash equivalents at the beginning of the period	14	32,731,439	35,318,251	516,019	-
Cash and cash equivalents at the end of the period	14	15,535,382	3,726,254	8,876,353	(1,287,280)

SONAE CAPITAL, SGPS, SA

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

INTRODUCTION SONAE CAPITAL, SGPS, SA ("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, SA (previously named Sonae Capital, SGPS, SA) from Sonae, SGPS, SA, 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:

Resorts;
Hotels;
Fitness;
Energy,
Refrigeration & HVAC;
Other Assets.

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

MAIN ACCOUNTING POLICIES The main accounting policies adopted are consistent with those used in the financial statements presented for the year ended 31 December 2016

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 derivative financial instruments which are stated at fair value.

CHANGES IN ACCOUNTING POLICIES Changes to international accounting standards that came into force on or after 1 January 2017, did not have material impacts in the financial statements as at 30 June 2017.

4. GROUP COMPANIES INCLUDED IN THE CONSOLIDATED

FINANCIAL STATEMENTS Group companies included in the consolidated financial statements, their head offices and percentage of the share capital held by the Group as at 30 June 2017 and 31

				Percentage of capital held
			30 June 2017			31 December 2016

Company Sonae Capital SGPS, SA		Head Office Maia	Direct Holding	Total Holding	Direct Holding	Total Holding

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

Resorts
Atlantic Ferries-Tráf.Loc,Flu.e Marít,SA	a)	Grândola	95,77%	95,77%	95,77%	95,77%
Golf Time-Golfe e Invest. Turísticos, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
Imopenínsula - Sociedade Imobiliária, SA	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%
Marina de Tróia, SA.	a)	Grândola	100,00%	100,00%	100,00%	100,00%
Marmagno-Expl.Hoteleira Imob.,SA	a)	Grândola	100,00%	100,00%	100,00%	100,00%
Marvero-Expl.Hotel.Im.,SA	a)	Grândola	100,00%	100,00%	100,00%	100,00%
SII - Soberana Invest. Imobiliários, SA	a)	Grândola	100,00%	100,00%	100,00%	100,00%
Soltroia-Imob.de Urb.Turismo de Tróia,SA	a)	Lisbon	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, SA	a)	Grândola	100,00%	100,00%	100,00%	100,00%
Troiaresort, SGPS, SA Tulipamar-Expl.Hoteleira Imob.,SA	a) a)	Matosinhos Grândola	100,00% 100,00%	100,00% 100,00%	100,00% 100,00%	100,00% 100,00%

Fitness
Acrobatic Tittle, S.A.	a)	Lisbon	10,00%	10,00%	10,00%	10,00%
Solinca - Health & Fitness, SA	a)	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%
Capwatt II - Heat 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%
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%
CAPWATT - SCSGPS, 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 Companhia Térmica Tagol, Lda.	a) a)	Maia Oeiras	70,00% 100,00%	70,00% 100,00%	70,00% 100,00%	70,00% 100,00%

	CTE - Central Termoeléctrica do Estuário, Lda	a)	Maia	100,00%	100,00%	100,00%	100,00%

	Enerlousado - Recursos Energéticos, Lda.	a)	Maia	100,00%	100,00%	100,00%	100,00%
1)	Lusobrisa – Produção de Energia Eléctrica	a)	Maia	100,00%	100,00%	-	-
1)	Gasflow, Unipessoal, Lda	a)	Maia	100,00%	100,00%	-	-
	Ronfegen - Recursos Energéticos, Lda.	a)	Maia	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, SA.	a)	Faro	85,00%	85,00%	85,00%	85,00%
1)	Ventos da Serra – Produção de Energia S.A.	a)	Maia	100,00%	100,00%	-	-
	Refrigeration and HVAC
	QCE - Desenvolvimento e fabrico de Equipamentos, SA	a)	Matosinhos	100,00%	70,00%	100,00%	70,00%
	Race, SA	a)	Matosinhos	100,00%	70,00%	100,00%	70,00%
	Race, SGPS, SA	a)	Matosinhos	70,00%	70,00%	70,00%	70,00%
	Sistavac Sistemas HVAC-R do Brasil, Ltda	a)	São Paulo	100,00%	70,00%	100,00%	70,00%
	Sopair, S.A.	a)	Madrid	100,00%	70,00%	100,00%	70,00%
2)	Spinarq Moçambique, Lda	a)	Maputo	70,00%	70,00%	70,00%	70,00%
2)	Spinarq-Engenharia,Energia e Ambiente,SA	a)	Luanda	99,90%	99,90%	99,90%	99,90%

	Other Assets
	Bloco Q-Soc.Imobil.SA	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.,SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Cinclus Imobiliária,SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Contacto Concessões, SGPS, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Contry Club da Maia-Imobiliaria,SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Empreend.Imob.Quinta da Azenha,SA	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,SA	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,SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Imoponte - Sociedade Imobiliária, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Imosedas-Imobiliária e Seviços,SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Implantação - Imobiliária, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Inparvi SGPS, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Interlog-SGPS,SA	a)	Lisbon	98,98%	98,98%	98,98%	98,98%
	Porturbe-Edifícios e Urbanizações,SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Praedium - Serviços, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Praedium II-Imobiliária,SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Prédios Privados Imobiliária,SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Predisedas-Predial das Sedas,SA	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-Industrials,SGPS,S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	SC Assets, SGPS, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Sete e Meio Herdades-Inv. Agr. e Tur.,SA	a)	Grândola	100,00%	100,00%	100,00%	100,00%
	Société de Tranchage Isoroy SAS.	a)	Honfleur	100,00%	100,00%	100,00%	100,00%
	Soira - Soc. Imobiliária de Ramalde, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Sótaqua - Soc. de Empreend. Turisticos, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Spinveste - Promoção Imobiliária, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Spinveste-Gestão Imobiliária SGII,SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Urbisedas-Imobiliária das Sedas, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Vistas do Freixo-Emp.Tur.Imobiliários,SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	Others
	Imobeauty, S.A.	a)	Maia	100,00%	100,00%	100,00%	100,00%
	SC - Sociedade de Consultadoria, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
	SC Finance BV	a)	Amsterdam	100,00%	100,00%	100,00%	100,00%

SC For - Ser.Formação e Desenvolv.Recursos Humanos, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
UP Invest, SGPS, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%
SC, SGPS, SA	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%
Spred, SGPS, SA	a)	Maia	100,00%	100,00%	100,00%	100,00%

1) Company acquired in the period 2) Companies discontinued in the period.

a) Majority of voting rights

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

					30 June 2017
			Percentage of Capital Held
	Company name	Head Office	Direct	Total	Total Assets	Total Liabilities	Total Costs	Total income	Share Capital	Net income	Balance Value
	Jointly Controlled Companies
	Other Assets
	Andar - Sociedade Imobiliária, SA	Maia	50.00%	50.00%	16,608,340	16,885,997	482,435	376,951	(277,657)	(105,484)	-
1)	Sociedade de Construções do Chile, SA	Maia	100.00%	50.00%	17,314,479	994,828	484,831	2,866,427	16,319,651	2,381,596	-
1)	Vastgoed One - Sociedade Imobiliária, SA	Maia	100.00%	50.00%	12,050,889	-	75	-	12,050,889	(75)	-
1)	Vastgoed Sun – Sociedade Imobiliária, SA	Maia	100.00%	50.00%	12,055,566	-	77	-	12,055,566	(77)	-

	Associated Companies Other Assets
	Lidergraf - Artes Gráficas, Lda	Vila do Conde	24.50%	24.50%	17,959,808	10,319,962	9,651,213	10,434,100	7,639,846	782,887	1,150,834

	Energy Feneralt - Produção de Energia, ACE	Barcelos	25.00%	25.00%	976,478	674,487	565,590	863,371	301,991	297,781	163,862

					31 December 2016
			Capital Held	Percentage of
	Company name	Head Office	Direct	Total	Total Assets	Total Liabilities	Total Costs	Total income	Share Capital	Net income	Balance Value
	Jointly Controlled Companies
	Other Assets
	Andar - Sociedade Imobiliária, SA	Maia	50.00%	50.00%	16,604,641	16,776,815	917,743	-	(172,174)	(917,743)	-
1)	Sociedade de Construções do Chile, SA	Maia	100.00%	50.00%	14,746,910	810,256	63,685	166	13,936,655	(63,520)	-
1)	Vastgoed One - Sociedade Imobiliária, SA	Maia	100.00%	50.00%	12,050,074	610	1,389	135	12,049,464	(1,254)	-
1)	Vastgoed Sun – Sociedade Imobiliária, SA	Maia	100.00%	50.00%	12,054,754	610	1,297	135	12,054,143	(1,162)	-
	Associated Companies
	Other Assets
	Lidergraf - Artes Gráficas, Lda	Vila do Conde	24.50%	24.50%	17,937,039	10,378,691	21,305,990	22,539,972	7,558,348	1,233,982	1,138,099
2)	Norscut - Concessionária de Scut Interior Norte, SA	Lisbon	-	-	-	-	-	-	-	-	-
2)	Operscut - Operação e Manutenção de Auto-estradas, SA	Lisbon	-	-	-	-	-	-	-	-	-
	Energy
	Feneralt - Produção de Energia, ACE	Barcelos	25.00%	25.00%	1,036,916	522,770	1,404,866	1,910,592	442,562	438,352	96,801

76,965,560 28,875,274 11,184,221 14,540,849 48,090,286 3,356,628 1,314,696

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

2) Company sold in 30 September 2016.

Associated and jointly controlled companies are consolidated using the equity method. Nil balances shown result from the reduction to acquisition cost of amounts determined by the equity method, discontinuing the recognition of its part of additional losses under the terms of IAS 28.

During the periods ended 30 June 2017 and 2016, movements in investments of associated and jointly controlled companies may be summarized as follows:

	30 June 2017	30 June 2016

Opening balance as at 1 January	1,266,842	12,992,457

Disposals in the period	-	(19,144,575)
Equity method	193,872	7,493,241
Dividends received	(114,074)	(75,222)
Closing balance as at 30 June	1,346,640	1,265,901
Accumulated impairment losses (Note 22)	(31,943) 1,314,696	(31,943) 1,233,958

The use of the equity method had the following impacts: 193,872 euro recorded on share of results of associated undertakings (111,399 euro at 30 June 2016), and 0 euro in changes in reserves (7,381,842 euro at 30 June 2016).

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

			Percentage of capital held
			30 June 2017		31 December 2016		Book Value
Company	Head Office	Direct	Total	Direct	Total	30 June 2017	31 December 2016

Resorts Infratroia – Emp. de Infraest. de Troia, E.N.	Grândola	25.90%	25.90%	25.90%	25.90%	64,747	64,747
Other Assets
Net, SA	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
Other investments						158,289	140,124
Total						497,020	478,855

	30 June 2017		31 December 2016
	Non-current	Current	Non-current	Current

Investments at acquisition cost
Opening balance as at 1 January	770,693	-	889,353	-
Acquisitions in the period	30,886	-	23,752	-
Disposals in the period	(12,721)	-	(142,412)	-
Closing balance as at 30 June	788,858	-	770,693	-
Accumulated impairment losses (Note 22)	(291,838)	-	(291,838)	-
	497,020	-	478,855	-
Other Investments	497,020	-	478,855	-

CHANGES TO THE CONSOLIDATION PERIMETER During the period ended 30 June 2017 the following companies were acquired:

		Percentage of capital held at acquisition date
Company	Head	Direct	Total
	Office
Gasflow, Unipessoal, Lda	Maia	100,00%	100,00%
Lusobrisa – Produção de Energia Eléctrica, S.A. Ventos da Serra – Produção de Energia S.A.	Maia Maia	100,00% 100,00%	100,00% 100,00%

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

	Acquisition date	30 June 2017

Net assets acquired
Tangible and intangible assets (Notes 10 and 11)	35,222,806	34,870,531
Financial investments	10,000	18
Other assets	1,653,249	1,804,872
Cash and cash equivalents	2,803,841	131,118
Other liabilities	(29,489,894) 10,200,002	(26,397,286) 10,409,253
Total equity	10,200,002

Income statements from the acquired companies External supplies and services	453,208	-
Staff costs	-	-
Depreciation and amortisation	909,636	-
Provisions and impairment losses	-	-
Other operating expenses	31,582	-
Operational expenses	1,394,426	-
Sales	453,079	-
Services rendered	2,200,819	-
Other operating income	93,108	-
Operational income	2,747,006	-
Operational profit/(loss)	1,352,580	-
Financial income	1,570	-
Financial expenses	387,930	-
Net financial income / (expenses)	(386,360)	-
Profit/(Loss) before taxation	966,220	-
Taxation	(13,995)	-
Profit/(Loss) for the year	952,225	-
Gain/(Loss) on acquisition	1,765,245
	10,553,340
Acquisition price Payments made	10,553,340
Net cash flow from the acquisition
	10,553,340
Payments made	(2,803,841)
Cash and equivalents acquired	7,749,499

TANGIBLE ASSETS AND INTANGIBLE ASSETS During the six month period ended 30 June 2017, 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	49,277,022	163,142,640	203,878,370	988,371	4,117,201	2,239,282	2,619,249	426,262,135
1 January 2017 Changes in consolidation	-	316,167	50,977,965	-	2,250	-	-	51,296,382
Perimeter (companies in) Discontinued operations	-	-	(93,727)	(397,206)	(33,601)	(4,372)	-	(528,906)
Capital expenditure	-	123,751	262,393	-	2,846	-	3,618,839	4,007,829
Disposals	(242,554)	(5,879,357)	(1,459,383)	(1,706)	(102,142)	(22,300)	(19,368)	(7,726,810)
Exchange rate effect	-	-	(1,955)	-	(3,841)	(4,201)	-	(9,997)
Transfers	407	582,358	766,474	-	75,802	10,448	(1,776,192)	(340,702)
Closing balance as at	49,034,875	158,285,559	254,330,137	589,459	4,058,514	2,218,857	4,442,528	472,959,930
30 June 2017 Accumulated depreciation			-
Opening balance as at	-	41,590,603	105,170,616	930,711	3,409,113	1,742,151	-	152,843,194
1 January 2017 Changes in consolidation	-	141,591	16,228,000	-	445	-	-	16,370,035
perimeter (companies in) Discontinued operations	-	-	(48,364)	(354,708)	(22,896)	(3,382)	-	(429,350)
Charges for the period	-	1,365,387	6,326,389	5,113	91,628	37,528	-	7,826,045
Disposals	-	(1,269,103)	(509,297)	(1,706)	(102,102)	(22,300)	-	(1,904,507)
Exchange rate effect	-	-	(2,181)	623	(3,562)	(3,634)	-	(8,755)
Transfers	-	-	(90,337)	(7,223)	(299)	-	-	(97,859)
Closing balance as at 30 June 2017	-	41,828,478	127,074,826	572,811	3,372,327	1,750,363	-	174,598,805
Accumulated impairment
losses Opening balance as at	7,602,813	25,704,222	1,327,036	-	-	-	-	34,634,071
1 January 2017 Changes in consolidation	-	-	3,219,123	-	-	-	-	3,219,123
perimeter (companies in) Charges for the period	10,488	21,626	3,338	-	-	-	-	35,452
Reversals for the period	(77,490)	(186,347)	(24,160)	-	-	-	-	(287,997)
Closing balance as at 30 June 2017	7,535,811	25,539,501	4,525,337	-	-	-	-	37,600,649
Carrying amount
As at 1 January 2017
As at 30 June 2017	41,674,209 41,499,064	95,847,815 90,917,580	97,380,718 122,729,974	57,660 16,648	708,088 686,187	497,131 468,494	2,619,249 4,442,528	238,784,870 260,760,477

a) During the first half of 2017 subsidies to investment was reclassified from "Other current liabilities – Investment Aid" and "Other noncurrent creditors – Investment Aid" to "Fixed assets" in the amount of (310.711) euro, as set out in IAS 20 - Accounting for Government Grants and Disclosure of Government Assistance. In the income statement, the subsidie to offset the related cost is now stated in the line of Depreciation and Amortisation.

Major amounts included in the caption Tangible assets in progress, refer to the following projects:

	30 June 2017	31 December 2016

Troiaresort	1,759,822	1,657,460
Cogeneration Project	1,296,405	-
Health Clubs Refurbishment	1,177,820	300,884
Others	208,481	660,905
	4,442,528	2,619,249

During the six month period ended 30 June 2017, 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 2017	8,189,952	3,778,269	283,781	382,826	12,634,829
Changes in consolidation perimeter (companies in)	4,868,797	-	-	217,252	5,086,049
Capital expenditure	-	-	192,698	470,134	662,832
Disposals	-	(183)	-	-	(183)
Exchange rate effect	-	(2,538)	-	-	(2,538)
Transfers	(475,020)	607,526	(225,058)	(675,563)	(768,115)
Closing balance as at 30 June 2017	12,583,730	4,383,075	251,421	394,650	17,612,875

Accumulated amortization
Opening balance as at 1 January 2017	1,700,975	3,094,135	224,289	-	5,019,398
Changes in consolidation perimeter (companies in)	1,570,467	-	-	-	1,570,467
Charges for the period	147,669	259,715	27,133	-	434,516
Disposals	-	(183)	-	-	(183)
Exchange rate effect	-	(2,228)	-	-	(2,228)
Closing balance as at 30 June 2017	3,419,111	3,351,439	251,422	-	7,021,971

Carrying amount
As at 1 January 2017
As at 30 June 2017	6,488,978	684,135	59,492	382,826	7,615,431
	9,164,619	1,031,636	-	394,650	10,590,904

a) During the first half of 2017 subsidies to investment was reclassified from "Other current liabilities – Investment Aid" (Note 21) and "Other non-current creditors – Investment Aid" to "Intagible Assets" in the amount of (476.484) euro, as set out in IAS 20 - Accounting for Government Grants and Disclosure of Government Assistance. In the income statement, the subsidie to offset the related cost is now stated in the line of Depreciation and Amortisation.

As at 30 June 2017 the net assets of Marina de Troia in Patents and other similar rights, amounts to 5,201,212 euro (5,701,588 euro at 31 December 2016).

GOODWILL During the periods ended 30 June 2017 and 31 December 2016, movements in goodwill, as well as in corresponding impairment losses, are as follows:

	30 June 2017	31 December 2016

Gross amount: Opening balance	62,194,124	62,194,124
Increases - acquisition of affiliated companies	2,441,371	-
Closing balance	64,635,495	62,194,124
Accumulated impairment losses:
Opening balance	24,353,034	1,301,596
Increases	-	23,051,438
Closing balance	24,353,034	24,353,034
Total	40,282,461	37,841,090

OTHER NON-CURRENT DEBTORS As at 30 June 2017 and 31 December 2016, other non-current debtors are detailed as

	30 June 2017	31 December 2016
Loans granted to related parties
Others	907,654	874,613
Impairment losses (Note 22)	907,654 (34,916)	874,613 (34,916)
	872,738	839,697

Trade accounts receivable and other debtors
Others	1,190,181	1,196,777
Impairment losses (Note 22)	- 1,190,181	- 1,196,777

Deferred costs
Financing charges	82,813 82,813	- -
Total financial instruments	2,145,732	2,036,474
Other non-current debtors	2,145,732	2,036,474

INVENTORIES Inventories as at 30 June 2017 and 31 December 2016 can be detailed as follows, highlighting the value attributable to real estate developments:

	30 June 2017		31 December 2016
	Total	of which Real Estate Developments	Total	of which Real Estate Developments
Raw materials, by-products and consumables	1,830,373	-	1,416,846	-
Goods for sale	30,380,990	17,477,741	30,621,892	29,396,542
Finished goods	14,951,415	14,951,415	16,227,654	16,227,654
Work in progress	71,209,870	62,765,924	71,597,057	67,573,121
	118,372,648	95,195,080	119,863,448	113,197,317
Accumulated impairment losses on stocks (Note 22)	(15,332,243)	(15,329,544)	(15,351,494)	(15,340,458)
Total Operations	103,040,405	79,865,536	104,511,954	97,856,859

12. TRADE ACCOUNTS RECEIVABLE AND OTHER CURRENT

ASSETS As at 30 June 2017 and 31 December 2016, trade accounts receivable and other current

	30 June 2017	31 December 2016

Trade accounts receivable	21,281,014	22,289,476
Accumulated impairment losses on trade debtors (Note 22)	(4,171,737)	(4,259,208)
	17,109,278	18,030,267
Taxes recoverable	10,569,726	10,540,381
Loans granted to and other amounts to be received from related parties Other current assets	68,528	139,309
Suppliers with a debtor balance	4,860,820	1,222,273

Other debtors	4,864,435	3,875,438
Accounts receivable from the sale of financial investments	3,439,533	4,088,126
Accounts receivable from the sale of tangible assets	3,121,587	5,920
Interest receivable	24,441	28,246
Deferred costs - Rents	601,315	373,360
Deferred costs - External supplies and services	1,335,387	1,155,795
Other current assets	8,920,355 27,167,872	10,290,839 21,039,996
Accumulated impairment losses on other current assets (Note 22)	(1,848,583)	(2,003,416)
Trade accounts receivable and other current assets	53,066,822	47,746,534

The caption "Other current assets" includes accruals related with works in progress at the end of the reporting period in the Refrigeration and HVAC segment.

DEFERRED TAXES Deferred tax assets and liabilities as at 30 June 2017 and 31 December 2016 can be

	Deferred tax assets			Deferred tax liabilities
	30 June 2017	31 December 2016	30 June 2017	31 December 2016

Amortisation and Depreciation harmonisation adjustments	434,710	566,662	4,240,464	4,068,443
Provisions and impairment losses of non-tax deductible	5,707,310	5,320,494	-	-
Write off of tangible and intangible assets	71,250	71,250	-	-
Revaluation of tangible assets	-	-	633,981	93,307
Tax losses carried forward	21,381,308	21,414,207	-	-
Write off of stocks Taxable temporary differences arising from the fair	- -	- -	406,866 6,536,784	462,815 6,529,266
value of non-current liabilities Others	63,443	7,644	8,481,456	8,481,456
	27,658,021	27,380,258	20,299,551	19,635,287

In accordance with the tax statements presented by companies that recorded deferred tax assets arising from tax losses carried forward, as at 30 June 2017 and 31 December 2016, and using exchange rates effective at that time, tax losses carried forward can be summarized as follows:

	30 June 2017				31 December 2016
	Tax losses carried forward	Deferred tax assets	Time limit	Tax losses carried forward	Deferred tax assets	Time limit

With limited time use Generated in 2012	15,687,054	3,294,281	2017	15,843,716	3,327,180	2017

Generated in 2013	18,024,639	3,785,174	2018	18,024,639	3,785,174	2018
Generated in 2014	13,536,168	2,842,595	2026	13,536,168	2,842,595	2026
Generated in 2015	47,663,128	10,009,257	2027	47,663,128	10,009,257	2027
Generated in 2016	6,904,762	1,450,000	2028	6,904,762	1,450,000	2028
Generated in 2017	-	-	2022
With a time limit different from	101,815,752 -	21,381,308 -		101,972,414 -	21,414,207 -
the above mentioned	101,815,752	21,381,308		101,972,414	21,414,207

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 2017, tax losses carried forward amounting to 65,998,534 euro (54,752,193 euro as at 31 December 2016), have not originated deferred tax assets for prudential

	30 June 2017				31 December 2016
	Tax losses carried forward	Tax Credit	Time limit	Tax losses carried forward	Tax Credit	Time limit

With limited time use
Generated in 2012	17,954,613	3,770,469	2017	13,872,225	2,913,167	2017
Generated in 2013	26,050,520	5,470,609	2018	25,870,105	5,432,722	2018
Generated in 2014	22,249	4,672	2026	22,249	4,672	2026
Generated in 2015	10,027	2,106	2027	29,058	6,102	2027
Generated in 2016	5,120,804	1,075,369	2028	2,892,333	607,390	2028
Generated in 2017	5,010,730 54,168,943	1,052,253 11,375,478	2022	- 42,685,969	- 8,964,054

Without limited time use With a time limit different from	11,829,590 -	2,957,398 -		11,658,674 407,549	2,914,669 94,305
the above mentioned
	11,829,590 65,998,534	2,957,398 14,332,876		12,066,224 54,752,193	3,008,973 11,973,027

CASH AND CASH EQUIVALENTS As at 30 June 2017 and 31 December 2016, cash and cash equivalents can be detailed as follows:

	30 June 2017	31 December 2016

Cash at hand	200,129	133,923
Bank deposits Treasury applications	15,324,109 11,144	32,604,013 9,272



Cash and cash equivalents on the balance sheet Bank overdrafts - (Note 17) Cash and cash equivalents in the statement of cash-flows	15,535,382 - 15,535,382	32,747,208 (15,769) 32,731,439

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, SA is represented by 250,000,000 ordinary shares, which do not have the right to a fixed remuneration, with a nominal value of 1

euro each. As at 30 June 2017, Sonae Capital SGPS, S.A. owns 4,783,433 own shares (5,516,571 own shares at 31 December 2016) booked for 1,305,839 euro (1,404,226 euro at 31 December

2016). 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

	30 June 2017	31 December 2016

Demerger reserve	132,638,253	132,638,253
Translation reserves	(4,099)	12,876
Hedging reserves	6,370	5,004
Others Other reserves and retained earnings	(94,493,299) 38,147,226	(88,414,342) 44,241,791

Demerger reserve The demerger originated a reserve in the amount of 132,638,253 euro, which has a treatment similar to that of a Legal Reserve. According to Company Law, it cannot be distributed to shareholders, unless the company is liquidated, but can be used to make good prior year losses, once other reserves have been used fully, or for capital increases.

Translation reserves These reserves are comprised by the conversion into euro of the financial statements of the subsidiaries that have other functional currency.

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 2017 and 31 December 2016 are as follows:

	30 June 2017	31 December 2016

Opening balance as at 1 January	9,925,965	10,247,125
Changes in hedging reserves	-	-
Changes in the percentage of capital held in affiliated companies	-	(24,782)
Changes resulting from currency translation	(28,079)	482
Dividends paid	(926,710)	(1,441,468)
Others	-	45,913
Profit for the period attributable to minority interests	545,703	1,098,695
Closing balance	9,516,879	9,925,965

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

BORROWINGS As at 30 June 2017 and 31 December 2016, Borrowings are made up as follows:

	30 June 2017 Outstanding amount		31 December 2016 Outstanding amount
					Repayable on
	Current	Non-Current	Current	Non-Current
Bank loans
Sonae Capital SGPS - commercial paper a)	4,000,000	-	-	-	Feb/2018
	10,000,000	-	-	-
Sonae Capital SGPS - commercial paper b) Sonae Capital SGPS - commercial paper c)	-	15,000,000	-	-	Jun/2018 Aug/2019
Sonae Capital SGPS - commercial paper d)	-	-	-	20,000,000	Jun/2021
	4,500,000	-	-	-
Sonae Capital SGPS - commercial paper e)	-	10,000,000	-	-	Jun/2021
Sonae Capital SGPS - commercial paperf)	-	(287,291)	-	(445,544)	Feb/2023
Up-front fees	465,883	729,541	1,121,468	977,912
Others	18,965,883	25,442,250	1,121,468	20,532,367
	-	-	15,769	-
Bank overdrafts (Note 14) Bank loans	18,965,883	25,442,250	1,137,237	20,532,367
Bond Loans
	-	42,500,000	-	42,500,000
Sonae Capital 2014/2019 Bonds	-	15,000,000	-	15,000,000	May/2019
Sonae Capital 2016/2021 Bonds	-	(323,807)	-	(392,289)	Jul/2021
Up-front fees Bond Loans	-	57,176,193	-	57,107,711

Other loans	-	246,177	117,400	246,177
Derivatives (Note 18)	-	-	4,530	-
Obligations under finance leases	3,252,539 -	14,815,079 (67,270)	3,214,278 -	16,449,963 (73,991)
Up-front fees on finance leases	22,218,422	97,612,429	4,473,445	94,262,228

a) Short term commercial paper programme, issued on 28 March 2008 and valid for a 10 year period, which may be extended at the option of Sonae Capital. Placed in investors or financial institutions and guaranteed by credit lines, with commitment of at least six months to a year, placed in

relationship banks. b) Commercial paper programme, with subscription guarantee, issued on 30 June 2017 with annual payments.,unless denounced by either party. c) Commercial paper programme, with subscription guarantee, issued on 31 March 2011 and valid until August 2019. This loan has as collateral

mortgage on real estate. d) Commercial paper programme, with subscription guarantee, issued on 23 de June 2016 and valid for a 5 years period, with annual payments. e) Commercial paper programme, with subscription guarantee, issued on 31 December 2013, with automatic annual renewals up to 7 years and six

months, unless denunciated by either party. f) Commercial paper programme, with subscription guarantee, issued on 24 February 2017 and valid until February 2023, with semiannual payments starting in 2019.

As at 30 June 2017, borrowings of the Group were as follows: Sonae Capital, SGPS, SA, 2014/2019 bond loan in the amount of 42,500,000 euro, with a 5 year maturity, and a sole reimbursement on 28 May 2019. This bond loan
bears interest every six months. Sonae Capital, SGPS, SA, 2016/2021 bond loan in the amount of 15,000,000 euro, with a 5 year 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.

The interest rate on bonds and bank loans in force on 30 June 2017 was on average 2.25% (2.69% in December 2016).

Bank loans pay interest rates that are indexed to the Euribor market rates of the period, and its fair value is considered close to its book value.

Other non-current loans include government refundable grants to group companies,

The Group has a loan covenant negotiated in accordance with market practices and is in regular compliance at the present date.

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

		30 June 2017
	Nominal value	Interest	31 December 2016 Nominal value	Interest

N+1	22,218,426	2,671,860	4,468,915	2,557,645
N+2	47,316,685	2,500,462	8,786,986	2,280,282
N+3	20,529,693	660,205	51,245,074	1,368,522
N+4	5,081,203	548,353	8,466,613	482,773
N+5	19,730,650	292,780	22,619,129	422,525
After N+5	5,632,563	59,326	4,056,251	62,467
	120,509,220	6,732,984	99,642,967	7,174,215

18. DERIVATIVES

Interest rate derivatives As of 30 June 2017 the Group has no hedging instruments.

Hedging instruments used by the Group as at 31 December 2016 were mainly interest rate options (cash-flow hedges) contracted with the goal of hedging interest rate risks on loans in the amount of 193,262 euro, whose fair value is 4,530 euro and are recorded as liabilities in other loans (Note 17). As at 31 December 2016 all derivatives are hedging

These interest rate hedging instruments are valued at fair value as at the balance sheet date, determined by valuations made by the Group using derivative valuation calculation schedules and external valuations when these schedules do not permit the valuation of certain instruments. For options, fair value is determined using the Black-Scholes model

The fair value of derivatives is calculated using valuation models based on assumptions which are confirmed by market benchmarks, thus complying with level 2 requirements

Risk coverage guidelines generally used by the Group in contractually arranged hedging

instruments are as follows: Matching between cash-flows received and paid, i.e., there is a perfect match between the dates of the re-fixing of interest rates on financing contracted with
the bank and the dates of the re-fixing of interest rates on the derivative; Perfect matching between indices: the reference index for the hedging instrument
and that for the financing to which the underlying derivative relates are the same; In the case of extreme rises in interest rates, the maximum cost of financing is

Counterparts for derivatives are selected based on their financial strength and credit risk profile, with this profile being generally measured by a rating note attributed by rating agencies of recognized merit. Counterparts for derivatives are top level, highly prestigious financial institutions which are recognized nationally and internationally.

Fair value of derivatives

		Assets		Liabilities
	30 June 2017	31 December 2016	30 June 2017	31 December 2016
Non-Hedge accounting derivatives
Interest rate	-	-	-	-
Hedge accounting derivatives
Interest rate (Note 17)	-	-	-	4,530
Other derivatives	-	-	-	-
	-	-	-	4,530

OTHER NON-CURRENT CREDITORS As at 30 June 2017 and 31 December 2016 other non-current creditors can be detailed as

	30 June 2017	31 December 2016

Loans and other amounts payable to related parties Plaza Mayor Parque de Ocio, SA (Note 28)	1,768,378	1,825,274
Others	232,513	232,150
	2,000,891	2,057,424

Other creditors Creditors in the restructuring process of Torralta	645,267	623,702
Others	-	-
	645,267	623,702
Deferred income
Investment aid	-	606,056
Obligations by share-based payments (Note 20)	282,074	464,519
	282,074	1,070,575
Other non-current creditors	2,928,232	3,751,701

During the first half of 2017 subsidies to investment were reclassified from "Other current liabilities – Investment Aid" to "Fixed Assets" and "Intangible Assets" in the amount of 606.056 euro, as set out in IAS 20 - Accounting for Government Grants and Disclosure of

SHARE-BASED PAYMENTS Sonae Capital Group granted deferred performance bonuses to employees, based on shares of Sonae Capital SGPS, SA 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 2017 and 31 December 2016, the market value of total liabilities arising from share-based payments, which have not yet vested, may be summarised as follows:

	Year of grant	Vesting year	Number of participants	Fair Value
				30 June 2017	31 December 2016
Shares
	2014	2017	6	-	406,269
	2015	2018	6	577,881	512,554
	2016	2019	6	425,220	368,445
Total	2017	2020	12	421,847 1,424,948	- 1,287,269

As at 30 June 2017 and 31 December 2016, 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 2017	31 December 2016
	282,075	464,518
Other non-current creditors (Note 19)	482,049	406,269
Other current creditors
Reserves	(277,619) 486,505	(170,768) 700,019

TRADE ACCOUNTS PAYABLE As at 30 June 2017 and 31 December 2016 trade accounts payable can be detailed as

	30 June 2017	31 December 2016

Trade creditors	25,853,511	16,479,554
Loans granted by and other payables to related parties	788,829	204,288
Other current liabilities
Fixed assets suppliers	1,532,494	1,164,703
Advances from customers and down payments	3,359,619	838,494
Other creditors	12,101,709	2,482,586
Taxes and contributions payable	5,168,129	4,719,004
Accrued staff costs	6,746,028	6,376,663
Amounts invoiced for works not yet completed	4,197,321	4,892,128
Accrued expenses with purchases - Energy Segment	100,000	1,872,405
Interest payable	348,436	408,023
Investment aid	171,965	926,085
Other liabilities	11,388,338 45,114,039	10,514,414 34,194,504

Trade accounts payable and other current liabilities 71,756,379 50,878,346

During the first half of 2017 subsidies to investment were reclassified from "Other current liabilities – Investment Aid" to "Fixed Assets" and "Intangible Assets" in the amount of 203.660 euro, as set out in IAS 20 - Accounting for Government Grants and Disclosure of

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

Captions	Balance as at 1 January 2017	Increases	Decreases	Utilisations	Balance as at 30 June 2017

Accumulated impairment losses on:
Tangible Assets (Note 8)	34,634,071	3,254,574	287,996	-	37,600,649
Goodwill (Note 9)	24,353,034	-	-	-	24,353,034
Other Investments (Notes 5 and 6)	323,781	-	-	-	323,781
Other non-current assets (Note 10)	34,916	-	-	-	34,916
Trade accounts receivable (Note 12)	4,259,204	123,342	210,019	791	4,171,736
Other current assets (Note 12)	2,003,417	-	154,834	-	1,848,583
Stocks (Note 11)	15,351,494	-	19,250	-	15,332,243
Non-current provisions	3,079,824	-	-	-	3,079,824
Current provisions Total	3,939,016 87,978,757	1,159,683 4,537,599	- 672,099	1,303,155 1,303,946	3,795,543 90,540,308

As at 30 June 2017 and 31 December 2016 detail of other provisions was as follows:

	30 June 2017	31 December 2016

Judicial claims	1,578,860	1,697,459
Provision for secured income Others	1,661,361 3,635,146	2,628,037 2,693,345
Total	6,875,367	7,018,840

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 2017 and 2016 was as follows:

	30 June 2017	30 June 2016

Own work capitalised	35,716	6,794
Gains on sales of assets	1,616,814	291,240
Supplementary income	251,029	230,861
Others Continued Operations	812,256 2,715,815	1,754,558 2,283,453
Discontinued Operations	-	(255,951)
Total	2,715,815	2,027,502

Pag. 45

CONTINGENT ASSETS AND LIABILITIES As at 30 June 2017 and 31 December 2016 the most important contingent liabilities referred to guarantees given and were made up as follows:

	30 June 2017	31 December 2016
Guarantees given:
on VAT reimbursements	5,199,346	5,199,346
on tax claims	17,428,800	17,589,470
on municipal claims	1,134,224	1,134,224
guarantees given on rental contracts	7,215,961	3,521,714

Others include the following guarantees: 4,611,567 euro as at 30 June 2017 (5,872,865 euro as at 31 December 2016) of
guarantees on construction works given to clients; 3,766,391 euro as at 30 June 2017 (3.766.391 euro as at 31 December 2016) of

guarantees given concerning building permits in the Resorts segments. 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 2017 and 2016, Investment income was made up as follows:

	30 June 2017		30 June 2016

Dividends		-		105,147
Adjustment to the liquidation price of "Sodesa"	1,448
Adjustment to the liquidation price of "Powercer"	4,944
Adjustment to the selling price of "Box Lines Navegação"	36,603		48,377
Gains in the acquisition of group companies Gains of investments in group companies	1,765,245	1,808,240		48,377
Capital gain associated to the sale of Norscut - Concessionária de	-		16,090,448
Scut Interior Norte, SA and
Income from "Fundo de Investimento Imobiliário Imosonae Dois"	-		12,601
Gains/(Losses) on sale of other investments Others		- (3)		16,103,049 -
Investment Income	-	1,808,237	-	16,256,573

TAXATION As at 30 June 2017 and 2016, Taxation was made up as follows:

	30 June 2017	30 June 2016

Current tax Deferred tax	367,159 378,505	221,170 155,876
Taxation	745,664	377,046

RECONCILIATION OF CONSOLIDATED NET PROFIT As at 30 June 2017 and 2016, the reconciliation of consolidated net profit can be analysed as follows:

	30 June 2017	30 June 2016

Aggregate net profit - continued operations	151,259,357	80,990,279
Aggregate net profit - discontinued operations	(541,829)	(524,732)
Harmonisation adjustments	(1,744,446)	(396,224)
Elimination of intragroup dividends	(154,894,877)	(454,096,128)
Share of gains/(losses) of associated undertakings	193,871	36,177
Elimination of intragroup capital gains/(losses)	32,399	(1,726,000)
Elimination of intragroup impairment	-	392,244,800
Adjustments of gains/(losses) on assets disposals	-	-
Adjustments of gains/(losses) of financial shareholdings sale	1,765,245	(6,711,654)
Others	(2)	-
Consolidated net profit for the year - continued operations Consolidated net profit for the year - discontinued operations	(3,259,827) (670,456)	10,388,206 (571,688)
	(3,930,283)	9,816,519
Consolidated net profit for the year

Pag. 48

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

	June 2017		June 2016
Transactions	Sales and services rendered	Purchases and services obtained	Sales and services rendered	Purchases and services obtained

Parent company	-	-	-	-
Associated companies	14,760	2,342	31,220	12,356
Andar-Sociedade Imobiliária,SA	-	-	-	-
Feneralt - Produção de Energia, ACE	8,533	(10,748)	15,956	-
Lidergraf - Artes Gráficas, Lda Norscut - Concessionária de Scut Interior Norte, SA	6,227 -	13,090 -	15,264 -	12,356 -
Vastgoed One	-	-	-	-
Vastgoed Sun	-	-	-	-
Other partners and Group companies	21,275,852	2,777,136	23,290,743	2,153,570
Águas Furtadas - Soc. Agricola, SA	1,253	-	1,221
Alpêssego - Sociedade Agrícola, SA	3,314	-	1,764
ARP Alverca Retail Park, SA	-	-	-	-
Casa Agrícola de Ambrães, S.A.	1,564	-	909
Aqualuz - Turismo e Lazer, Lda	695,123	1,661	620,154	55,220
Arrábidashopping- Centro Comercial, S.A.	435	-	-	-
Asprela - Sociedade Imobiliária, S.A.	-	-	-	-
Azulino Imobiliária, S.A.	-	-	-	-
BB Food Service, SA	259,961	(3,041)	314,668	(5,873)
Bertimóvel - Sociedade Imobiliária, S.A.	-	-	-	-
BOM MOMENTO - Comércio Retalhista, SA	31,940	(34)	3,801
Bright Development Studio, S.A.	62	-	-	-
Cascaishopping- Centro Comercial, S.A.	508,351	(05)	231,230	(783)
Centro Colombo- Centro Comercial, S.A.	370,781	108,714	481,111	110,371
Continente Hipermercados, S.A.	1,959,234	(16,543)	579,423	(8,913)
Contimobe-Imobil.Castelo Paiva,SA	-	1,790	284,003	2,410
Digitmarket-Sistemas de Informação,SA	-	135,730	75	96,831
Discovery Sports, SA	1,235	-	2,046
Efanor Investimentos, SGPS, S.A.	-	-	46
Efanor Serviços de Apoio à Gestão, S.A.	33,682	-	33,341
Sierra Spain, Shop. Centers Serv.,S.A.U.	-	-	198
Estação Viana - Centro Comercial, S.A.	16	-	-	-
Euroresinas-Indústrias Quimicas,SA	-	(2,820)		4,830
Fashion Division, S.A.	2,602	-	1,832
Guimarãeshopping- Centro Comercial, S.A.	1,529	-	-	-
Iberosegur - Sociedade Ibérica de Mediação de Seguros, Lda	553	-	-	-
Fundo de Invest. Imobiliário Imosede	76,710	279,464	68,369	261,324
Imosistema-Sociedade Imobiliária,SA	(3,550)	-	-	-
Fundo Invest. Imobiliário Imosonae Dois	77,215	-	-	-
Infofield-Informática,SA	41	-	1,893
Insco Insular de Hipermercados, S.A.	84,585	(04)	208,541	(11)
LCC LeiriaShopping Centro Comercial SA	(2,276)	-	(1,804)	-
NOS Sistemas S.A.	21,082	559,385		467,552
Modelo - Dist.de Mat. de Construção,S.A.	2,498	-	(870)	-
Modelo Continente Hipermercados,SA	9,341,735	252,984	14,130,773	(22,386)
Modelo Continente Hipermercados, Suc.	302	5,700	-	4,800

MDS Affinity-Sociedade de Mediação Lda	-	-	634
MDS Corretor de Seguros, SA	171,357	748	189,366	(8,627)
MDS RE - Mediador de resseguros	-	-	472
MDS Africa SGPS, S.A.	418	-	-	-
MDS Auto - Mediação de Seguros, SA	951	-	1,526
MDS Consulting, SA	5,489	1,026	5,858	1,905
MDS, SGPS, SA
Modalfa-Comércio e Serviços,SA	636	-	340
MODALLOOP - Vestuário e Calçado, SA	15,636 375	- -	59,585 (7,310)
Movelpartes-Comp.para Ind.Mobiliária,SA	118	-	208

Norteshopping-Centro Comercial, S.A. Paracentro - Gest.de Galerias Com., S.A.	21,500	118,302	-	-
	46,009	2,300	-	-
Parklake Shopping, S.A.	6,668,986	(366)	5,028,969
Parque Atlântico Shopping - C.C., SA	-	-	-	-
PCJ-Público, Comunic e Jornalismo, SA PHARMACONTINENTE - Saúde e Higiene, S.A.	- 2,270	- 541	- 81,522	-

Prosa - Produtos e Serviços Agrícolas,S.A.	15,460	(505)	18,794
Público-Comunicação Social,SA	90	6,993	6	1,519
QCE - Desenvolvimento e Fabrico de Equipamentos, S.A.	-	(218,921)		(399,818)
Saphety Level - Trusted Services S.A.	-	67,197		71,493
SONAESR - Serviços e logistica, S.A.	10,826	-	2,691
Sempre à Mão - Sociedade Imobiliária,SA	-	-	31,065
Sonae Financial Services, S.A.	1,580	-	-	-
Sonae Indústria-SGPS,SA	725	-	484
Sonae Arauco Portugal, S.A.	28,207	(80)	30,524	(203)
Sonae Industria de Revestimentos,SA	229,701	147,894	210,637	189,380
SIRS-Soc.Ind.Radiodifusão Sonora,SA	-	14,942		11,625
RACE - Refrigeration & Air Conditioning Engineering, S.A.	-	(39,493)		(30,274)

Sierra Management Portugal-Gest. CC,S.A.	7,733	799,546	9,980	858,237
Socijofra-Sociedade Imobiliária,SA	-	-	38,645
Sociloures-Soc.Imobiliária,SA	-	-	-	-
Sohi Meat Solut-Distr. Carnes	26,681	10,414	-	-
Siaf-Soc.Iniciat.Aprov.Florestais,SA	-	-	-	-
Sonaecenter Serviços, SA	-	-	-	-
Sonae Center Serviços II, SA	25,955	284,728	84,383	241,042
Sonae.com,SGPS,SA Sonae Investment Management	-	-		1,287
S.T.,SGPS,S.A. Sonaecom - Serviços Partilhados, S.A	- 49,452	- (75,276)	- 46,839	- (65,790)
Sonaegest-Soc.Gest.Fundos Investimentos	1,441	112,209		112,786

Sonae MC - Modelo Continente, SGPS, SA	-	-		(346)
Sonaerp - Retail Properties, SA	213,541	8,456	228,551	4,697
Sonae SGPS, SA	7,417	36,500	6,386	25,000
Sysvalue Consultadoria, Int e Seg SI, S.A.	-	-	462
Sport Zone-Comércio Art.Desporto,SA	23,762	27,404	23,627	21,693
Tafiber,Tableros de Fibras Ibéricas,SL	-	-	-	-
Sonae Arauco, S.A.	1,929	-	6,875
Sonae Arauco Suisse, S.A.	-	-	-	-
Textil do Marco,SA	57,254	-	53,549
Tableros Tradema,S.L.	1,530	-	4,294
Centro Vasco da Gama-Centro Comercial,SA	-	1,951		3,902
Via Catarina- Centro Comercial, S.A.

We Do Consulting-SI,SA Worten-Equipamento para o Lar,SA	181	148,077 (432)	-	148,769
ZIPPY - Comércio e Distribuição, SA	163,759 4,906	-	130,346 38,711	(79)
	21,290,612	2,779,478	23,321,963	2,165,926
Transactions	Interest income	Interest expenses	Interest income	Interest expenses
Parent company
	-	-	-	-
Associated companies	26,236	-	29,190	-
Andar-Sociedade Imobiliária,SA Norscut - Concessionária de Scut Interior Norte, SA	26,236 -	- -	29,190 -	- -

Other partners and Group companies Plaza Mayor Parque de Ocio, SA	- -	44,613 44,613	- -	48,984 48,984
	26,236	44,613	29,190	48,984

	June 2017		June 2016
Balances	Accounts receivable	Accounts payable	Accounts receivable	Accounts payable
Parent company	-	-	-	-
Associated companies	48,403	9,282	112,744	3,074
Andar-Sociedade Imobiliária,SA
Feneralt - Produção de Energia, ACE	24,464 11,599	- -	28,347 79,716	- -
Lidergraf - Artes Gráficas, Lda	12,340	9,282	4,681	3,074
Other partners and Group companies	5,990,710	-	10,704,121	1,480,910
8ª Avenida - Centro Comercial, SA
Agloma Investimentos, Sgps, S.A.	-	-	-	-
Águas Furtadas - Soc. Agricola, SA	- 257	- -	- 299	- -
ALBCC Albufeirashopping C.Comercial SA	-	-	-	-
Algarveshopping- Centro Comercial, S.A.	16,479	-	16,479	-
Alpêssego - Sociedade Agrícola, SA	2,844	-	292	-
Aqualuz - Turismo e Lazer, Lda	282,126	-	-	-
BB Food Service, SA	117,526	-	80,579	-
BOM MOMENTO - Comércio Retalhista, SA	5,878	-	4,055	-
Casa Agrícola de Ambrães, S.A.	171	-	-	-
Cascaishopping- Centro Comercial, S.A.	73,432	-	-	-

Centro Colombo- Centro Comercial, S.A. Centro Vasco da Gama-Centro	154,095	-	139,374	16,545
Comercial,SA	1,200	-	-	-
Contimobe-Imobil.Castelo Paiva,SA	-	-	77,223	1,500
Continente Hipermercados, S.A.	110,633	-	350,457	4,945
Cumulativa - Sociedade Imobiliária, S.A.	-	-	-	-
Digitmarket-Sistemas de Informação,SA	145,009	-	106,409	692
Discovery Sports, SA	1,588	-	2,010	-
Efanor Serviços de Apoio à Gestão, S.A. Sonaerp - Retail Properties, SA	1,163	-	6,923	5,451
	24,012	-	5,341	58,919
Estação Viana - Centro Comercial, S.A. Euroresinas-Indústrias Quimicas,SA	4,445	-	4,445	-
Fashion Division, S.A.	-	-	-	12,926
Fundo de Invest. Imobiliário Imosede	1,364 96,085	- -	1,364 43,665	- 44,556

Guimarãeshopping- Centro Comercial, S.A.

Herco Consul.Riscos Corret.Seguros, Ltda Iberosegur - Sociedade Ibérica de	-	-	-	1,071
Mediação de Seguros, Lda	130	-	-	-
Imosistema-Sociedade Imobiliária,SA	1,505	-	11,842	-
Infofield-Informática,SA	1,733	-	1,683	-
Insco Insular de Hipermercados, S.A.	22,568	-	108,945	-
LCC LeiriaShopping Centro Comercial SA	-	-	2,628	-
Loureshopping-Centro Comercial, S.A.	-	-	37,216	-
Madeirashopping- Centro Comercial, S.A.	16,168	-	42,432	-
MDS Consulting, SA	85	-	-	-
MDS Corretor de Seguros, SA	20,338	-	33,098	129,892
Mds Knowledge Centre, Unipessoal, Lda	-	-	-	-
MDS RE - Mediador de resseguros	- 838	-	(530)	-
Modalfa-Comércio e Serviços,SA	4,532	-	8,554	-
MODALLOOP - Vestuário e Calçado, SA	-	-	-	6,235

Modelo - Dist.de Mat. de Construção,S.A.	2,472	-	94,402	-
Modelo Continente Hipermercados, Suc.	320	-	-	-
Modelo Continente Hipermercados,SA	3,276,330	-	6,961,465	260,677
Movelpartes-Comp.para Ind.Mobiliária,SA	145	-	-	-
Mundo Vip	-	-	-	-
Norteshopping-Centro Comercial, S.A.	-	-	-	456,799
Paracentro - Gest.de Galerias Com., S.A.	-	-	-	1,700
Parklake Shopping, S.A.	1,272,948	-	1,924,623	-
PHARMACONTINENTE - Saúde e Higiene, S.A.	396	-	7,000	-
Plaza Mayor Parque de Ocio,SA	-	-	-	40,300

Prosa - Produtos e Serviços Agrícolas,S.A.	3,032	-	-	-
Público-Comunicação Social,SA	-	-	-	780
Rio Sul - Centro Comercial, SA	6,334	-	6,334	-
S.C. Microcom Doi Srl	-	-	-	-
Saphety Level - Trusted Services S.A.	- -	-	-	35,174
SEKIWI, SGPS., S.A.	25	-	80	-
Sempre à Mão - Sociedade Imobiliária,SA	-	-	38,209	-
Siaf-Soc.Iniciat.Aprov.Florestais,SA	-	-	2,261	-
Sierra Management Portugal-Gest. CC,S.A.	91,989	-	87,257	91,435
Sierra Management Spain-Gestión
C.Com.SA	-	-	-	-
Sierra Spain, Shop. Centers Serv.,S.A.U.	-	-	210	-
SIRS-Soc.Ind.Radiodifusão Sonora,SA	4,920 -	-	1,997	3,953
Sohi Meat Solut-Distr. Carnes	1,401	-	-	-
Sonae Arauco Portugal, S.A.	16,635	-	14,398	(130)
Sonae Arauco, S.A.	884	-	754	-
Sonae Center Serviços II, SA	6,245	-	9,808	77,314
Sonae Industria de Revestimentos,SA	137,893	-	137,810	106,546
Sonae Indústria-SGPS,SA	-	-	290	-
Sonae SGPS, SA	6,220	-	1,265	50,000
Sonae.com,SGPS,SA	-	-	-	250
Sonaecenter Serviços, SA	-	-	-	-
Sonaecom - Serviços Partilhados, S.A	25,848	-	23,587	300
Sonaegest-Soc.Gest.Fundos Investimentos	886	-	-	16,657
SONAESR - Serviços e logistica, S.A.	9,114	-	33,944	-
Sport Zone-Comércio Art.Desporto,SA	1,517	-	1,083	8,158
Tableros Tradema,S.L.	529	-	811	-
Textil do Marco,SA	9,343	-	8,817	119
We Do Consulting-SI,SA	-	-	-	39,800

Pag. 51

Worten España Distribución, SL	-	-	-	-
Worten-Equipamento para o Lar,SA
	12,220	-	260,645	8,346
ZIPPY - Comercio y Distribución, S.A. ZIPPY - Comércio e Distribuição, SA	- 1,061	- -	- 1,568	- -
	6,039,113	9,282	10,816,865	1,483,984
Balances	Loans	Loans	Loans	Loans granted
	obtained	granted	obtained
Parent company	-	-	-	-
Associated companies	-	872,739	-	839,697
Andar-Sociedade Imobiliária,SA
Feneralt - Produção de Energia, ACE	-	872,739	-	839,697
Other partners and Group companies	- 1,768,378	-	- 1,825,274	-
Plaza Mayor Parque de Ocio, SA	1,768,378	- -	1,825,274	- -

a) The parent company is Efanor Investimentos, SGPS, SA; b) Balances and transactions with Group Sonae, SGPS and Group Sonae Indústria, SGPS, SA are included under Other partners in Group companies.

1,768,378 872,739 1,825,274 839,697

EARNINGS PER SHARE Earnings per share for the periods ended 30 June 2017 and 2016 were calculated taking into consideration the following amounts:

	30 June 2017	30 June 2016
Net profit
Net profit taken into consideration to calculate basic earnings per share (Net profit for the period )	(4,475,984)	9,139,503
Net profit taken into consideration to calculate diluted earnings per share	(4,475,984)	9,139,503
Number of shares
Weighted average number of shares used to calculated basic earnings per share	247,345,810	246,740,156
Weighted average number of shares used to calculated diluted earnings per share	247,345,810	246,740,156
Earnings per share (basic and diluted) - Continued operations	(0.015385)	0.039358
Earnings per share (basic and diluted) - Discontinued operations	(0.002711)	(0.002317)
Earnings per share (basic and diluted)	(0.018096)	0.037041

There are no convertible instruments included in the shares of Sonae Capital, SGPS, SA,

SEGMENTS INFORMATION In 30 June 2017 and 31 December 2016, the following were identified as segments:
Resorts
Hotels
Fitness
Energy
Refrigeration and HVAC
Other Assets

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

Profit and Loss Account	Resorts	Hotels	Fitness	30 June 2017 Energy	Refrigeration and HVAC	Other Assets	Intersegment Adjustments	Consolidated
Turnover	6,857,208	8,082,987	11,477,942	21,373,805	23,274,553	6,960,732	(5,179,434)	72,847,793
Other operational income	1,332,779	250,166	334,476	223,866	(64,381)	1,204,982	(566,073)	2,715,815
Total operational income	8,189,987	8,333,154	11,812,418	21,597,671	23,210,172	8,165,714	(5,745,507)	75,563,609
Operational cash flow (EBITDA)	(1,072,061)	(1,311,647)	1,481,800	5,680,836	(69,384)	909,014	-	5,618,558

Profit and Loss Account	Resorts	Hotels	Fitness	30 June 2016 Energy	Refrigeration and HVAC	Other Assets	Intersegment Adjustments	Consolidated
Turnover	10,041,777	6,443,946	8,592,667	21,505,569	27,542,699	9,558,801	(5,465,510)	78,219,949
Other operational income	1,218,690	234,113	149,086	742,898	479,317	162,719	(703,370)	2,283,453
Total operational income	11,260,467	6,678,059	8,741,753	22,248,467	28,022,016	9,721,520	(6,168,880)	80,503,402
Operational cash flow (EBITDA)	275,159	(2,344,350)	922,029	4,907,529	987,919	988,535	-	5,736,821

The contribution of the business segments to the Balance sheets as at 30 June 2017 and

Balance Sheet	Resorts	Hotels	Fitness	30 June 2017 Energy	Refrigeration and HVAC	Other Assets	Intersegment Adjustments	Consolidated
Fixed Assets Tangible, Intangible	111,144,025	12,700,418	9,214,128	65,873,648	9,801,135	127,446,970	(24,546,483)	311,633,842
and Goodwill Investments	49,654,616	10,847,909	18,898	167,258	12,789	320,552,586	(379,442,339)	1,811,717
Other	55,956,723	9,783,788	2,558,337	10,896,303	50,842,371	543,498,542	(471,603,513)	201,932,551
Assets Total Assets	216,755,364	33,332,115	11,791,363	76,937,209	60,656,295	991,498,098	(875,592,335)	515,378,108
Total	187,126,117	29,135,446	7,492,592	73,218,738	25,756,950	371,039,347	(478,078,809)	221,690,380
Liabilities
Technical	769,000	487,662	976,538	965,379	89,548	1,387,768	(11,178)	4,664,717
investment
Gross Debt	10,743,997	-	141,312	8,535,569	-	100,409,974	-	119,830,852

Net Debt	10,487,549	(129,440)	26,810	8,333,934	(854,781)	86,431,398	-	104,295,470

Balance Sheet	Resorts	Hotels	Fitness	31 December 2016 Energy	Refrigeration and HVAC	Other Assets	Intersegment Adjustments	Consolidated
Fixed Assets Tangible, Intangible	115,857,957	12,729,785	9,145,613	29,695,898	9,853,707	131,504,913	(24,546,482)	284,241,391
and Goodwill Investments	46,712,016	10,693,538	11,573	98,948	9,691	342,388,894	(398,200,905)	1,713,755
Other Assets	60,237,499	9,948,572	2,537,855	7,882,427	44,978,632	538,990,283	(450,152,835)	214,422,433
Total Assets	222,807,472	33,371,895	11,695,041	37,677,273	54,842,030	1,012,884,090	(872,900,222)	500,377,576
Total Liabilities	187,208,324	30,113,066	8,944,775	32,545,115	20,914,865	350,921,833	(450,628,131)	180,019,847
Technical investment	1,212,720	1,359,711	1,994,065	3,764,716	71,574	1,014,124	(2,668)	9,414,242
Gross Debt	11,715,949	-	158,972	9,658,175	515,200	76,687,376	-	98,735,673
Net Debt	10,844,588	(102,001)	83,404	8,830,431	(110,543)	46,442,585	-	65,988,465

SUBSEQUENT EVENTS No significant events, requiring further disclosure, have occurred after 30 June 2017.
APPROVAL OF THE FINANCIAL STATEMENTS These consolidated financial statements were approved by the Board of Directors and authorized for issue on 28 July 2017.

The Board of Directors

PART IV INDIVIDUAL FINANCIAL

Individual Financial Statements

SONAE CAPITAL, SGPS, SA INDIVIDUAL BALANCE SHEET AS AT 30 JUNE 2017 AND 31 DECEMBER 2016

(Amounts expressed in euro)

ASSETS	Notes	30/06/2017	31/12/2016
NON-CURRENT ASSETS:
Tangible assets		27,721	28,660
Investments	4	309,649,439	308,580,096
Deferred tax assets	7	14,314,699	14,314,699
Other non-current assets	5	332,589,677 656,581,537	332,918,086 655,841,541
Total non-current assets
CURRENT ASSETS:
Taxes recoverable	6	2,189,643	2,163,794
Other current assets	6	75,718,451	43,498,510
Cash and cash equivalents Total Current Assets	8	9,414,399 87,322,493	27,861,181 73,523,485
TOTAL ASSETS		743,904,030	729,365,026

EQUITY AND LIABILITIES
EQUITY:
Share capital	9	250,000,000	250,000,000
Own Shares	9	(1,305,839)	(1,404,226)
Reserves and retained earnings	10	301,630,917	316,888,259
Profit/(Loss) for the year TOTAL EQUITY		21,693,576 572,018,654	8,738,316 574,222,348

LIABILITIES:
NON-CURRENT LIABILITIES:
Bank Loans	11	24,733,781	19,579,665
Bonds	11	57,176,193	57,107,711
Other non current liabilities	13	198,028	360,486
Total Non-Current Liabilities		82,108,002	77,047,862
CURRENT LIABILITIES:
Trade creditors	13	136,271	92,536
Bank Loans	11	18,500,000	-
Other creditors	12	70,074,967	76,808,940
Other current liabilities	13	1,066,136	1,193,340
Total Current Liabilities		89,777,374	78,094,816
TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES		171,885,376 743,904,030	155,142,678 729,365,026

SONAE CAPITAL, SGPS, SA INDIVIDUAL INCOME STATEMENTS BY NATURE

FOR THE SIX MONTHS ENDED 30 JUNE 2017 AND 2016

(Amounts expressed in euro)

	Notes	30/06/2017	30/06/2016

Operational profit
Other operating income	17	54,560	54,036
Operational profit total		54,560	54,036
Operational loss
External supplies and services	14	(670,329)	(486,491)
Staff costs	15	(1,049,450)	(647,696)
Depreciation and amortisation		(939)	(754)
Other operating expenses	17	(27,967)	(92,733)
Operational loss total		(1,748,685)	(1,227,674)
Operational profit/(loss)		(1,694,126)	(1,173,638)
Financial Expenses	16	(1,879,163)	(3,552,636)
Financial Income	16	5,527,075	9,447,876
Net financial income / (expenses)		3,647,912	5,895,240
Investment income	16	19,208,415	28,824,614
Profit/(Loss) before taxation		21,162,201	33,546,216
taxation	18	531,375	142,789
Profit/(Loss) for the year		21,693,576	33,689,005
Profit/(Loss) per share

SONAE CAPITAL, SGPS, SA INDIVIDUAL INCOME STATEMENTS BY NATURE FOR THE SECOND QUARTERS OF 2017 AND 2016 (Amounts expressed in euro)

	Notes	n d Quarter 17 1 2	n d Quarter 16 1 2

Operational profit
Other operating income		30,740	41,558
Operational profit total		30,740	41,558
Operational loss
External supplies and services		(323,700)	(234,576)
Staff costs		(548,612)	(283,825)
Depreciation and amortisation		(469)	(377)
Other operating expenses		(19,196)	(17,623)
Operational loss total		(891,977)	(536,401)
Operational profit/(loss) Financial Expenses		(861,237)	(494,843)
Financial Income		(938,058)	(1,836,764)
		2,807,348	4,726,438
Net financial income / (expenses)		1,869,290	2,889,674
Investment income		19,186,991	28,046,681
Profit/(Loss) before taxation		20,195,044	30,441,512
taxation		312,320	(92,641)
Profit/(Loss) for the year		20,507,364	30,348,871
Profit/(Loss) per share

SONAE CAPITAL, SGPS, SA INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2017 AND 2016 (Amounts expressed in euro)

Individual net profit/(loss) for the period	30/06/2017 21,693,576	30/06/2016 33,689,005
Items that may be reclassified subsequently to net profit / (loss):
Changes in the currency translation differences
Share of other comprehensive income of associates and joint ventures accounted for by the equity method (Note 5)	-	-
Change in the fair value of assets available for sale	-	-
Change in the fair value of cash flow hedging derivatives	-	-
Tax related to other comprehensive income captions	-	-
Other comprehensive income for the period	-	-
Total comprehensive income for the period	21,693,576	33,689,005

SONAE CAPITAL, SGPS, SA INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME FOR THE SECOND QUARTERS OF 2017 AND 2016 (Amounts expressed in euro)
	2	2
Individual net profit/(loss) for the period	n d Quarter 17 1 20,507,362	n d Quarter 16 1 30,348,871
Items that may be reclassified subsequently to net profit / (loss):
Changes in the currency translation differences
Share of other comprehensive income of associates and joint ventures accounted for by the equity method (Note 5)	-	-
Change in the fair value of assets available for sale	-	-
Change in the fair value of cash flow hedging derivatives	-	-
Tax related to other comprehensive income captions	-	-
Other comprehensive income for the period	-	-

Total comprehensive income for the period 20,507,362 30,348,871

REPORT AND ACCOUNTS - JUNE 2017 Individual Financial Statements

(Amounts expressed in euro)

SONAE CAPITAL, SGPS, SA INDIVIDUAL STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2017 AND 2016

Share Capital (Note 9) Own Shares (Note 9) Fair Value Reserves (Note 10) Other Reserves (Note 10) Retained Earnings Sub total Net Profit/(Loss) Total Equity Balance as at 1 January 2016 250,000,000 (1,426,791) 9,463,225 309,676,446 - 319,139,671 12,198,782 579,911,662 Total individual comprehensive income for the period - - - - - - 33,689,005 33,689,005 Appropriation of profit of 2015: - - - - - - - - Transfer to legal reserves and retained earnings - - 609,939 - 11,588,843 12,198,782 (12,198,782) - Dividends paid - - - (3,080,184) (11,588,843) (14,669,027) - (14,669,027) (Acquisition)/Sales of own shares - 22,565 - 218,833 - 218,833 - 241,398 Other changes - - - - - - - - Balance as at 30 June 2016 250,000,000 (1,404,226) 10,073,164 306,815,095 - 316,888,259 33,689,005 599,173,038 Balance as at 1 January 2017 250,000,000 (1,404,226) 10,073,164 306,815,095 - 316,888,259 8,738,316 574,222,348 Total individual comprehensive income for the period - - - - - - 21,693,576 21,693,576 Appropriation of profit of 2016: - - - - - - - - Transfer to legal reserves and retained earnings - - 436,916 - 8,301,400 8,738,316 (8,738,316) - Dividends paid - - - (16,220,257) (8,301,400) (24,521,657) - (24,521,657) (Acquisition)/Sales of own shares - 98,387 - 525,999 - 525,999 - 624,386 Other changes - - - - - - - - Balance as at 30 June 2017 250,000,000 (1,305,839) 10,510,080 291,120,837 - 301,630,917 21,693,576 572,018,654

(Amounts expressed in euro)

SONAE CAPITAL, SGPS, SA INDIVIDUAL STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2017 AND 2016

Notes OPERATING ACTIVITIES:		30/06/2017 30/06/2016 2	n d Quarter 17 1 2	n d Quarter 16 1

Cash receipts from trade debtors	-	9,512	-	(120)
Cash receipts from trade creditors	679,424	540,683	444,056	323,412
Cash paid to employees	740,916	413,557	495,665	147,059
Cash flow generated by operations	(1,420,340)	(944,728)	(939,721)	(470,591)
Income taxes (paid) / received Other cash receipts and (payments) relating to operating activities	259,424 (1,684,077)	232,124 (336,652)	263,438 (194,137)	94 (125,025)
Net cash from operating activities (1)	(3,363,841)	(1,513,504)	(1,397,296)	(595,710)
INVESTMENT ACTIVITIES:
Cash receipts arising from:
Investments	600,000	382	600,000	382
Tangible assets	-	-	-	-
Interest and similar income	8,450,559	16,242,517	12	6,997
Dividends	18,122,785	28,046,298	18,122,785	28,046,298
Others	1,053,753	777,933	1,053,753	-
Loans granted	411,222	-	-	(240,000)
	28,638,319	45,067,131	19,776,550	27,813,677

Cash Payments arising from:
Investments	1,069,344	1,103,963	1,069,344	1,103,963
Tangible assets	-	1,250	-	-
Loans granted	33,124,608 34,193,952	3,330,968 4,436,181	20,939,372 22,008,716	(6,429,130) (5,325,167)
Net cash used in investment activities (2)	(5,555,633)	40,630,951	(2,232,166)	33,138,845
FINANCING ACTIVITIES:
Cash receipts arising from:
Sale of own shares	98,387	144,043	98,387	144,043
Loans obtained	45,700,000	63,650,000	43,500,000	34,350,000
	45,798,387	63,794,043	43,598,387	34,494,043
Cash Payments arising from:
Interest and similar charges	1,774,576	3,593,724	1,144,853	2,223,479
Dividends	24,515,574	14,665,371	24,515,574	14,665,371
Aquisition of own shares	-	-	-	-
Loans obtained	29,035,543	115,208,436	5,121,843	50,697,721
	55,325,693	133,467,531	30,782,270	67,586,571
Net cash used in financing activities (3)	(9,527,307)	(69,673,488)	12,816,116	(33,092,528)

Net increase in cash and cash equivalents (4) = (1) + (2) + (3)	(18,446,781)	(30,556,041)	9,186,653	(549,393)
Cash and cash equivalents at the beginning of the period 8	27,861,181	30,562,977	227,746	556,329
Cash and cash equivalents at the end of the period 8	9,414,399	6,936	9,414,399	6,936

NOTES TO THE INDIVIDUAL FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 (Translation from the Portuguese Original) (Amounts expressed in Euro)

Sonae Capital, SGPS, SA ("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, SA of the whole of the shareholding in the company formerly named Sonae Capital, SGPS, SA, now named SC, SGPS, SA, in compliance with paragraph a) of article 118 of the Commercial Companies Code.

The Company's financial statements are presented as required by the Commercial Companies Code. 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 individual financial statements are consisting with those used in the financial statements presented for the

year ended 31 December 2016.

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

	30 June 2017	31 December 2016
Investments in affiliated and associated undertakings	363,041,258	361,971,915
Investments in other companies
Sonae RE - (0,04%)	1,200	1,200
Fundo Invest. Imob. Imosonae Dois - (0,001%)	-	-
Matadouro Alto Alentejo, SA - (0,89%)	1	1
NET Novas Tecnologias, SA - (0,98%)	23,034	23,034
Fundo F HITEC - (6,48%)	250,950	250,950
	363,316,443	362,247,100
Impairment	(53,667,004)	(53,667,004)
	309,649,439	308,580,096

4.1 Investments in affiliated and associated undertakings As at 30 June 2017 and 31 December 2016, the detail of Investments in Affiliated and Associated Companies is as shown in the table below:

Company	% Held	Book Value	Equity	Profit / (Loss) for the
				period
CAPWATT, S.G.P.S., S.A.	100.00%	2,725,000	5,181,333	2,188,717
Fundo Esp de Invest. Imob Fechado WTC	59.87%	42,271,519	71,306,365	1,677,249
Troiaresort, SGPS, S.A.	100.00%	167,132,793	79,228,144	(315,637)
Interlog - SGPS, S.A.	98.94%	21,658,210	21,855,568	2,580
Lidergraf - Artes Gráficas, SA.	24.50%	1,125,301	7,639,846	782,886
SC Assets S.G.P.S., SA	100.00%	25,577,659	14,619,952	797,996
SC Hospitality, S.G.P.S., S.A.	100.00%	5,857,175	6,344,483	(96,801)
SC Finance B.V.	100.00%	263,698	63,957,627	74,794,411
SC Industrials, S.G.P.S., S.A.	100.00%	34,575,100	24,554,105	23,354,105
Race, SGPS, S.A.	70.00%	32,492,436	40,865,160	214,426
Solinca - Health & Fitness, S.A.	100.00%	15,515,838	4,193,116	384,016
Spred, S.G.P.S., S.A. Total	100.00%	13,846,529 363,041,258	171,902	(47,871)

imparment losses
------------------	--

Total	53,667,004
Spred, S.G.P.S., S.A.	12,719,962
Troiaresort, SGPS, S.A.	19,344,286
Interlog - SGPS, S.A.	36,864
SC Assets S.G.P.S., SA	21,565,892

imparment losses

Company	% Held	Book Value	Equity	Profit / (Loss) for the
				period
CAPWATT, S.G.P.S., S.A.	100.00%	2,725,000	8,022,003	5,294,092
Fundo Esp de Invest. Imob Fechado WTC	59.57%	42,271,519	71,389,116	3,137,593
Troiaresort, SGPS, S.A.	100.00%	167,132,793	79,543,780	(2,001,159)
Interlog - SGPS, S.A.	98.94%	21,658,210	21,852,988	30,161
Lidergraf - Artes Gráficas, SA.	24.50%	1,125,301	7,558,348	1,233,982
SC Assets S.G.P.S., SA	100.00%	25,577,659	13,821,956	(3,476,518)
SC Hospitality, S.G.P.S., S.A.	100.00%	5,857,175	6,746,620	305,336
SC Finance B.V.	100.00%	263,698	(10,836,784)	(964,510)
SC Industrials, S.G.P.S., S.A.	100.00%	34,575,100	13,873,988	12,673,988
Race, SGPS, S.A.	70.00%	32,492,436	40,650,733	(239,599)
Solinca - Health & Fitness, S.A.	100.00%	14,446,494	975,503	(244,941)
Spred, S.G.P.S., S.A.	100.00%	13,846,529	227,094	84,120

imparment losses

SC Assets S.G.P.S., SA	21,565,892

Interlog - SGPS, S.A.	36,864
Troiaresort, SGPS, S.A.	19,344,286
Spred, S.G.P.S., S.A.	12,719,962
Total	53,667,004

Total 361,971,915

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 2016, based on external valuations of the real estate of group companies or DCF methodology, to assess the fair

value of such investments. These assessments use discount rates that correspond to the weighted average rates of the cost of capital (WACC), calculated on the basis of the business type in which they operate and s target capital structures, and are in the range [7.2% - 10.1%]. 5 years

projections were considered and growth rates in perpetuity were considered void. As a result of this impairment tests as at 30 June 2017 and 31 December 2016, the detail of Impairments on Investments in Affiliated and Associated Companies is as shown in the table below.

	30 June 2017	31 December 2016	Variation
Spred, SGPS, SA	(12,719,962)	(12,719,962)	-
Interlog - SGPS,S.A.	(36,864)	(36,864)	-
Troiaresort, SGPS, S.A.	(19,344,286)	(19,344,286)	-
SC Assets SGPS SA	(21,565,892)	(21,565,892)	-
	(53,667,004)	(53,667,004)	-

OTHER NON-CURRENT ASSETS As at 30 June 2017 and 31 December 2016, other non-current assets are detailed as

	30 June 2017	31 December 2016

Loans granted to group companies:
SC Assets, SGPS, SA	177,691,228	177,691,228
Troiaresort, S.G.P.S., SA	135,742,637	135,742,637
SC Finance BV	5,885,000	5,885,000
Solinca - Health & Fitness, SA	2,529,000	2,940,222
SC Hospitality SGPS SA	9,971,000	9,971,000
SC Industrials SGPS SA	688,000	688,000
	332,506,865	332,918,086
Deferred costs - Non Current
Financing charges	82,813 332,589,677	- 332,918,086

These assets were not due or impaired as at 30 June 2017. The fair value of loans granted to Group companies is basically the same as their book value.

Loans to group companies interest at market rates and are repayable within a period exceeding one year. The interest rate as at 30 June 2017 stood, in average, at approximately 2.980%.

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 2017 and 31 December 2016, other current assets and Income tax are made

up as follows:

	30 June 2017	31 December 2016

Other Debtors - Group	2,277,942	1,417,349
Loans granted	66,159,508	33,034,900
Other Debtors	1,176,584	55,192
Accrued income	5,630,740	8,608,007
Deferred costs	473,677	383,062
	75,718,451	43,498,510


Income tax withheld	2,189,643 77,908,094	2,163,794 45,662,304

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

As at 30 June 2017 and 31 December 2016, the item Loans Granted is related to financial operations with the following subsidiaries:

	30 June 2017	31 December 2016
Loans to group companies
SC Assets, SGPS, SA	3,500,280	59,000
CAPWATT, SGPS, S.A.	41,504,700	13,225,200
Inparvi SGPS, SA	85,545	68,000
SC, SGPS, S.A.	14,320,574	13,943,600
Solinca - Health & Fitness, SA	-	703,400
Spred SGPS SA	808,000	2,523,500
Troiaresort, S.G.P.S., SA	5,940,409	2,512,200
	66,159,508	33,034,900

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 2017 stood, in average, at

approximately 1.870%. The item Other Debtors includes as at 30 June 2017 the amount 1,155,121 euro related to the credit acquired from its subsidiary Spred SGPS SA and related to the settlement of the

sale price of the stake in the company, Box Lines Navegação SA, in previous years. The amount recorded in the accrued income includes 5,574,394 euro relating to interest on loans granted to subsidiaries as well as 56,346 euro relating to commissions of

guarantees given to subsidiaries. Deferred costs include 425,510 euro 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 2014 to 2017, 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 consolidated

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

In the fiscal year 2017, 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 euros subject to and not exempt from Corporate Income Tax, the following state levy fees are levied: 3% over 1,500,000 euros and less than 7,500,000 euros; 5% on the upper part to 7,500,000 euros and up to 35,000,000 euros; and 7% that is levied on the part of the taxable income that

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

The Corporate income tax rate in force for 2017 is 21%.

As at 30 June 2017 and 31 December 2016, the item Income tax is made up as follows:

	30 June 2017	31 December 2016
Income tax withheld	1,589,286	1,325,486
Income tax (advanced payment)	1,466,143	1,374,287
Income tax	(865,786)	(535,979)
	2,189,643	2,163,794

DEFERRED TAXES Deferred tax assets and liabilities as at 30 June 2017 and 31 December 2016 can be detailed as follows, split between the different types of temporary differences:

	Deferred tax assets
				Deferred tax liabilities
Tax losses carried forward	30 June 2017 14,314,699	31 December 2016 14,314,699	30 June 2017	31 December 2016 - -

The movements in deferred tax assets and liabilities for the periods ended 30 June 2017

	Deferred tax assets			Deferred tax liabilities

	30 June 2017	31 December 2016	30 June 2017	31 December 2016
Opening balance	14,314,699	8,275,218		- -
Effect in results	-	6,039,482		- -
Tax losses carried forward	-	-		- -
Others	14,314,699	14,314,701		- -
	-	-		- -
Effect in reserves:
Closing balance	14,314,699	14,314,701		- -

In accordance with the tax statements presented by companies that recorded deferred tax assets arising from tax losses carried forward, as at 30 June 2017 and 31 December 2016, tax losses carried forward can be summarized as follows:

	Tax losses	30 June 2017 Deferred tax assets	To be used until	Tax losses	31 December 2016 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	47,663,128	10,009,257	2027	47,663,128	10,009,257	2027
Generated in 2016	6,904,762	1,450,000	2028	6,904,762	1,450,000	2028
Generated in 2017	-	-	2022	-	-	2022
	68,165,233	14,314,699		68,165,233	14,314,699

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

The analysis carried out on 30 June 2017, 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 2017 and 31 December 2016, cash and cash equivalents can be detailed as

	30 June 2017	31 December 2016

Cash	-	-
Bank deposits	9,414,399	27,861,181
Cash and cash equivalents in the balance sheet	9,414,399	27,861,181
	-	-
Bank overdrafts Cash and cash equivalents in the cash flow statement	9,414,399	27,861,181

EQUITY The share capital of Sonae Capital, SGPS, SA both in June 2017 and December 2016 is represented by 250,000,000 ordinary shares, which do not have the right to a fixed remuneration, with a nominal value of 1 euro each.

As at 30 June 2017, Sonae Capital, SGPS, SA holds 4,783,433 own shares representing 1.913% of the share capital (5,516,226 shares at 31 December 2016), recorded by 1,305,839 euros (1,404,226 euros at 31 December 2016) (Note 10).

RESERVES As at 30 June 2017 and 31 December 2016 the caption Other Reserves can be detailed as

	30 June 2017	31 December 2016
Free reserves	157,176,745	172,772,616
Demerger reserve	132,638,253	132,638,253
Own shares reserve	1,305,839	1,404,226
	291,120,837	306,815,095

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

The overall value of the demerger reserve (Note 1), representing the difference between the book value of the stake in SC, SGPS, SA (382,638,252 euros) which was highlighted Sonae, SGPS, SA for the Company and the amount of capital social Society (250,000,000 euros) which is comparable to the legal Reserve, according to the Companies Code, 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 is positive, 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 2017 the value of this item amounts to 10,510,080 Euros (December 2016: 10,073,164 Euros).

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 2017 and 31 December 2016 this caption included the following loans:

		30 June 2017		31 December 2016

		Current	Non Current	Current	Non Current
Bank loans
Sonae Capital SGPS - commercial paper	a)	4,000,000	-	-	-
Sonae Capital SGPS - commercial paper	b)	10,000,000	-	-	-
Sonae Capital SGPS - commercial paper	c)	-	15,000,000	-	-
Sonae Capital SGPS - commercial paper	d)	-	-	-	20,000,000
Sonae Capital SGPS - commercial paper	e)	4,500,000	-	-	-
Sonae Capital SGPS - commercial paper	f)	-	10,000,000	-	-
Up-front fees not yet charged to income statement		-	(266,219)	-	(420,335)
		18,500,000	24,733,781	-	19,579,665
Bank overdrafts (Note 8)		- 18,500,000	- 24,733,781	- -	- 19,579,665

Bond Loans
Sonae Capital 2016/2021 Bonds g)		-	15,000,000	-	15,000,000
Sonae Capital 2014/2019 Bonds h)		-	42,500,000	-	42,500,000
Up-front fees not yet charged to income statement		- -	(323,807) 57,176,193	- -	(392,289) 57,107,711
		18,500,000	81,909,974	-	76,687,376

a) Commercial paper program launched on 28 March 2008 and valid for a period of 10 years, and may be extended on the initiative of Sonae Capital. Emissions placed with investors and / or financial institutions supported by committed credit lines with terms between 6 months and one year, contracted with relationship banks.
b) Commercial paper program, with guarantee of subscription, started on June 30, 2017 with annual renewals, unless denounced by either party.
c) Commercial paper program, with guaranteed by subscription, started on March 31, 2011 and valid until August 2019. This loan is secured by mortgage on real estate.
d) Commercial paper program, with guaranteed by subscription, started on June 23, 2016, valid for a period of 5 years, with annual amortizations.
e) Commercial paper program, with guaranteed subscription beginning on December 31, 2013 with annual automatic renewals up to a maximum of seven years and six months, unless notice is given by either party.
f) Commercial paper program, guaranteed by subscription, started on February 24, 2017, valid until February 2023, with semiannual amortizations beginning in 2019.
g) Bond loan Sonae Capital SGPS 2016/2021 in the amount of 15,000,000 euro, with a 5 year maturity, and a sole reimbursement on 29 July 2021.This bond loan pays interest every six months.
h) Bond loan Sonae Capital, SGPS 2014/2019, repayable after 5 years, in one instalment, on 28 May 2019. This bond issue pays interest every six months.

The interest rate on bank loans and bonds in force on 30 June 2017 was on average

2.303%. Bank loans pay interest rates that are indexed to the Euribor market rates of the period,

and its fair value is considered close to its book value. In case of any Bank institution or commercial paper investor do not renew, at the maturity date, its respective loans, the Group has credit lines available to overcome such renewables.

OTHER CREDITORS As at 30 June 2017 and 31 December 2016 other creditors can be detailed as follows:

	30 June 2017	31 December 2016
Other creditors
Group companies - Short term loans	68,667,157	75,502,700
Other creditors	1,407,810	1,306,240
	70,074,967	76,808,940

As at 30 June 2017 and 31 December 2016 the caption loans granted is relative to financial operations granted to the following subsidiaries:

68,667,157 75,502,700

	30 June 2017	31 December 2016
Group companies - Short term loans:
Interlog-SGPS,SA	21,851,200	21,856,000
SC Industrials,SGPS,S.A.	24,646,000	37,421,000
SC For - Serv. de For. e Desenv. de Recur. Hum., Unipe., Lda 20,800		19,700
Race, SGPS, S.A.	19,006,400	13,074,500
SC Hospitality SGPS SA	2,678,893	3,131,500
Solinca - Health & Fitness, SA	463,864	-

Loans obtained from group companies bear interest at market rates and are repayable within one year. The interest rate as at 30 June 2017 was, in average, approximately

0.080%. The item Other Creditors - other, there are included 1,385,452 euros regarding transfers from subsidiaries of tax estimates under the special regime RETGS.

13. SUPLIERS, TAXES, OTHER NON CURRENT AND CURRENT

LIABILITIES

		30 June 2017
			31 December 2016
	Current	Non current	Current	Non current
Trade creditors	136,271	-	92,536	-
Taxes payable - income tax	-	-	-	-
Taxes payable - other taxes	47,734	-	70,975	-
Other current liabilities	-	-	-	-
Accruals:	-	-	-	-
Staff costs	618,793	198,028	664,870	360,486
Interest payable	354,709	-	379,457	-
Other accruals	44,198	-	73,119	-
Deferred income	703 1,066,136	- 198,028	4,919 1,193,340	- 360,486

As at 30 June 2017 and 31 December 2016 interest payable can be detailed as follows:

	30 June 2017	31 December 2016
Interest payable
Bank Loans	317,877	371,182
Group companies - Short term loans	36,832	8,275
	354,709	379,457

As at 30 June 2017 and 31 December 2016 the Income tax and Other taxes can be detailed as follows:

	30 June 2017	31 December 2016
Income taxation	-	-
Income taxation - amounts withheld	24,962	42,921
VAT	69	55
Social security contributions	22,703	27,998
Stamp tax	-	-
	47,734	70,975

EXTERNAL SUPPLIES AND SERVICES As at 30 June 2017 and 2016 External Supplies and services can be detailed as follows:

	30 June 2017	30 June 2016
Operational rents	(21.645)	(4.830)
Insurance costs	(19.953)	(20.941)
Travelling expenses	(26.274)	(25.754)
Services obtained	(558.944)	(427.882)
Other services	(43.514)	(7.085)
	(670.329)	(486.491)

In services obtained, stands out the amounts in heading fee of shared services, of 92,006 euros (2016: 130,969 euros) and heading Holding cost with the amount of 331,661 euros (2016: 208,210 euros), invoiced by subsidiary SC Sociedade de Consultadoria, SA.

STAFF COSTS As at 30 June 2017 and 2016, staff costs were made up as follows:

	30 June 2017	30 June 2016
Governing bodies' remunerations	(607,493)	(533,981)
Staff and other sectors remunerations	(292,961)	(32,744)
Compensation	(42,935)	-
Social security contributions	(95,977)	(78,644)
Other staff costs	(10,084)	(2,327)
	(1,049,450)	(647,696)

In 2017 the average number of employees was 1 (one) (2016: 1 one).

NET FINANCIAL EXPENSES AND INVESTMENT INCOME As at 30 June 2017 and 30 June 2016, Net Financial Expenses and Investment Income can be detailed as follows:

	30 June 2017	30 June 2016

Interest payable and similar expenses
Interest arising from:	(135,748)	(1,230,245)
Bank loans
Bonds	(976,367)	(867,914)
Other	(28,795)	(90,986)
Other financial expenses	(738,253)	(1,363,491)
	(1,879,163)	(3,552,635)
Interest receivable and similar income
Interest income	5,527,075	9,447,876
Net financial expenses	5,527,075 3,647,912	9,447,876 5,895,241

Reversal of /and Impairment losses (Note 4.1)	-	(6,744,800)
Dividends received	18,122,785	34,791,098
	31,877	-
Losses on finantial investments	1,053,753	778,316
Other income Investment income	19,208,415	28,824,614

As at 30 June 2017, 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 2017, the amount mentioned in "interest receivable and similar income"

includes interest on loans granted to group companies amounting to 5,526,121 euros. As at 30 June 2017, 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 2017, the amount mentioned in "Other income" relates to income received

17. OTHER OPERATIONAL PROFIT AND OTHER OPERATIONAL

EXPENSES

	30 June 2017	30 June 2016

Operational profit
Other supplementary income - guarantees commissions (Note 21) Others	54,131	49,141
	429	4,895
	54,560	54,036
Operational expenses
Indirect taxes Others	(27,965)	(92,549)
	(1) (27,967)	(184) (92,733)

As at 30 June 2017 and 2016, Taxation was made up as follows:

	30 June 2017	30 June 2016
Current tax (Note 6) Deferred tax (Note 7)	531,375	142,789
	- 531,375	- 142,789

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 2017 and 2016 were calculated taking into consideration the following amounts:

	30 June 2017	30 June 2016
Net profit
Net profit taken into consideration to calculate basic
earnings per share (Net profit for the period )	21,693,576	33,689,005
Effect of dilutive potential shares	-	-
Net profit taken into consideration to calculate
diluted earnings per share	21,693,576	33,689,005
Number of shares
Weighted average number of shares used to calculate
basic earnings per share	247,345,810	246,740,156

Weighted average number of shares used to calculate
diluted earnings per share	247,345,810	246,740,156

Earnings per share (basic and diluted)	0.087705	0.136536

COMPLIANCE WITH LEGAL REQUIREMENTS Art 5 nr 4 of Decree-Law nr 495/88 of 30 December changed by art 1 of Decree-Law nr 318/94 of 24 December.

In the period ended 30 June 2017 there are no shareholders' loan contracts.

In the period ended 30 June 2017 short-term loan contracts were entered with the companies: Companhia Térmica Tagol, Lda.; Capwatt Maia-Heat Pow.,SA; Capwatt Martim Longo,SA; Capwatt Vale de Caima-H.P,SA; Capwatt ACE;; QCE-D.Fab.Equipamentos, SA,; Sistavac SA Matosinhos; Soberana Invest.Imobil.SA; Troiamarket, SA; The House Ribeira Hotel SA; Soternix-Prod.Energia,ACE; Golftime – Golfe e Inv. Turisticos SA; Troiaresort SA; 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, SA; Aqualuz Tróia - Exploração Hoteleia e Imobiliária SA; RACE - Refrigeration & Air Conditioning Engineering, S.A.; Sótaqua - Soc. de Empreend. Turisticos and Imopenínsula -

As at 30 June 2017 amounts due by affiliated companies can be summarized as follows:

Loans and Short term loans granted

Companies	Closing Balance
SC Assets, SGPS, SA	181,191,508
SC Hospitality, SGPS, SA	9,971,000
CAPWATT, SGPS, S.A.	41,504,700
Inparvi SGPS, SA	85,545
SC Finance BV	5,885,000
SC, SGPS, S.A.	14,320,574
Solinca - Health & Fitness, SA	2,529,000
Troiaresort, S.G.P.S., SA	141,683,046
SC Industrials SGPS, SA	688,000
Spred SGPS SA	808,000 398,666,372

As at 30 June 2017 amounts due to affiliated companies can be summarized as follows:

Companies	Closing Balance
Interlog-SGPS,SA	21,851,200
SC - Industrials,SGPS,S.A.	24,646,000
SC For - Serv. de For. e Desenv. de Recur. Hum., Unipe., Lda	20,800
Race, SGPS, S.A.	19,006,400
SC Hospitality SGPS SA	2,678,893
Solinca - Health & Fitness, SA	463,864
	68,667,157

SUBSEQUENT EVENTS No significant events, requiring further disclosure, have occurred after 30 June 2017.
APPROVAL OF THE FINANCIAL STATEMENTS These financial statements were approved by the Board of Directors and authorized for issue on 28 July 2017.

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6003_ir_2017-08-31_73277dd5-d99e-4207-92a8-bec9a3da8be7.pdf

REPORT AND ACCOUNTS

PART I REPORT OF THE BOARD OF DIRECTORS

3. SEGMENTS PERFORMANCE

3.1. TROIA RESORT

3.2. FITNESS

3.4. ENERGY

3.5. REFRIGERATION & HVAC

3.6. OTHER ASSETS

4. CORPORATE INFORMATION

GLOSSARY

APPENDIX

PART II APPENDIX TO THE REPORT OF

STATEMENT 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

Pareuro, BV

Qualified Shareholdings

PART III CONSOLIDATED FINANCIAL

FOR THE 2ndQUARTERS OF 2017 AND 2016

SONAE CAPITAL, SGPS, SA

SONAE CAPITAL, SGPS, SA

4. GROUP COMPANIES INCLUDED IN THE CONSOLIDATED

5. INVESTMENTS IN ASSOCIATED AND JOINTLY

12. TRADE ACCOUNTS RECEIVABLE AND OTHER CURRENT

18. DERIVATIVES

PART IV INDIVIDUAL FINANCIAL

SONAE CAPITAL, SGPS, SA INDIVIDUAL BALANCE SHEET AS AT 30 JUNE 2017 AND 31 DECEMBER 2016

SONAE CAPITAL, SGPS, SA INDIVIDUAL INCOME STATEMENTS BY NATURE

SONAE CAPITAL, SGPS, SA INDIVIDUAL STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2017 AND 2016

SONAE CAPITAL, SGPS, SA INDIVIDUAL STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2017 AND 2016

NOTES TO THE INDIVIDUAL FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 (Translation from the Portuguese Original) (Amounts expressed in Euro)

year ended 31 December 2016.

imparment losses

Income Tax

13. SUPLIERS, TAXES, OTHER NON CURRENT AND CURRENT

17. OTHER OPERATIONAL PROFIT AND OTHER OPERATIONAL

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