Novabase SGPS

Quarterly Report • Nov 23, 2012

REPORT AND ACCOUNTS - 3RD QUARTER 2012

I - Management Report

• 1. Key Indicators Evolution
• 2. Short Summary of the Activity
• 3. Stock Performance
• 4. Outlook 2012

II - Consolidated Financial Statements

III - Condensed Consolidated Accounts

Consolidated Results 9M12

Privileged Information October 30, 2012

Highlights:

Turnover: 155.6 M€ (172.6 M€ in 9M11)

EBITDA: 14.2 M€ (11.7 M€ in 9M11)

Net Profit: 6.0 M€ (4.7 M€ in 9M11)

Net Cash: 28.4 M€ (14.7 M€ in 12M11)

Message from the CEO - Luís Paulo Salvado

"The accumulated results as of September confirm the trends we had already observed in the first half of the year and show a good execution of the strategy we set for this year.

International business grew 43%, representing 30% of the total business. The services maintain a growth trend, contributing to the net creation of over two hundred highly-skilled jobs. EBITDA and Net Profit increased by 22% and 29%, respectively. Also positive was the evolution of cash, with a generation near 14 M€ since the beginning of the year.

These results reflect that our stakes on international expansion and offerings with higher added value have succeeded. However, the domestic context has remained adverse, negatively impacting the components where we have less strategic control, therefore the business of third party products declined by 28%, leading to a decrease of 10% in total Turnover.

We are quite comfortable in the compliance of the Guidance for 2012 regarding profitability and international market share, but the goal that we have drawn for Turnover proves far more challenging. The coming months reveal themselves as very difficult and uncertain in the domestic market. Nevertheless, the results now released renew our confidence in the strategy outlined and in the ability to execute it. We will maintain focus on internationalization and growth of our more distinctive offerings."

INVESTOR RELATIONS OFFICE: María Gil Marín Tel. +351 213 836 300 Fax: +351 213 836 301 investor.relations@novabase.pt

Report available on website : www.novabase.pt

Novabase SGPS, S.A. Public Company . Euronext code: NBA.AM . Registered in TRO of Lisbon and Corporate Tax Payer nº 502.280.182 . Share Capital: 15,700,697.00 € . Head Office: Av. D. João II, Lote 1.03.2.3., 1998-031 Lisbon - PORTUGAL

1. Key Indicators Evolution

Turnover (M€)

Turnover below the annual Guidance linearized (-13.6%), due to the contraction of business in Portugal in the product component.

Earnings per share (EPS) in 9M12 reached 0.20 euros per share, registering an increase of 28.3% towards the EPS from the previous year of 0.15 euros per share.

Significant improvement of profitability as a result of the measures adopted in the end of 2011.

From EBITDA to Net Profit 9M12 Vs 9M11 (M€) Non-controlling interests in 9M12 amounted to -1.2 M€, which compares to 11.7 -4.5 7.2 -0.7 6.5 -1.5 -0.4 4.7 14.2 -4.3 9.9 -0.5 9.4 -2.2 -1.2 6.0 EBITDA Deprec. and amort. EBIT Financial results EBT Income tax Non-controlling interests Net Profit 9M11 9M12

-0.4 M€ in 9M11. This variation is mainly due to the positive evolution of the results of subsidiaries Celfocus, Collab and NBASIT, in Angola, compared to the same period of the prior year.

Cash generation of 13.8 M€ in the first nine months of 2012. 10.2

In the 9M12, Novabase shows a positive performance in cash generation.

Novabase ended the 9M12 with 28.4 M€ in net cash, which compares to 14.7 M€ in the 12M11.

On June 4th 2012, Novabase paid its shareholders a total amount of 0.9 M€ (0.03€/share).

2. Short Summary of the Activity

The first nine months of 2012 were marked by strong pressure on prices in the third party product component in Portugal, but also by significant improvement of the operating performance, which already reflects the measures adopted in the end of 2011 (restructuring process with the double objective of decreasing the average production cost and enabling the company to increase international growth).

Thus, the results of the nine months of 2012 are below the Turnover Guidance (-13.6%), but remained above the middle of the range of the EBITDA Guidance (+8.5%). Compared to 2011, Turnover decreased 9.8%, however, services grew 4.1% and international business represented 29.7% of the total business. EBITDA raised 22.0% and Net Profit reached 6.0 M€.

Novabase's management was focused on strengthening internationalization, the great challenge of the company for 2012, remaining committed to maintain the position in the domestic market, which is proving extremely challenging.

With the aim of maximizing synergies between all of its businesses, Novabase has decided to reorganize its Digital TV operations with effect from the second half of the year. Solutions geared toward TV operators were included in the Infrastructures & Managed Services (IMS) business. On the other hand, the System-in-Package (SIP) solutions, strongly supported by R&D and intellectual property investments, were transferred to the Venture Capital business.

The table below shows the Turnover and EBITDA for 9M10 and 9M11 related to each of the offerings, which were included in Digital TV area, and that were incorporated in 2012 into the IMS and VC segments:

		TV operators Solutions	SIP Solutions
	9M10 9M11		9M10	9M11
Turnover (M€)	38.367	34.634	2.327	6.805
EBITDA (M€)	3.817	2.878	-2.159	-1.165

Noteworthy is the inauguration of Parque Oriente Operations Centre in the first quarter of 2012. The new space, which occupies more than 3,000 m2 and is designed to operate 24 hours a day, 7 days a week, incorporates all of the expertise needed to design and deploy large-scale technology infrastructure projects. This new Operations Centre at Parque Oriente will allow us to reinforce outsourcing and managed services in Portugal and the rest of the world.

In the second quarter of the year, Novabase strengthened its focus on the Financial sector with the acquisition of 100% stake in Binómio, a company specialising in financial assets management solutions, who holds a paramount position in Portugal with insurance and pension management companies and also has customers in the PALOPs (African Portuguese Speaking Countries), namely in Angola.

Also worthy of note in these first nine months of 2012, is the distinction of Novabase as Best System Integrator in 2011, in the National Conference of IBM Business Partners. Collab has received three awards at the Conference Beyond 2013, attributed by the Portuguese Association of Contact Centers (APCC) to the organizations that stood out most in their Centres Customer Relationship in 2012: Best IVR Platform 2012, Best Workforce Management Platform 2012 and Best Agent Front End (CRM) 2012. Additionally, Microsoft Portugal distinguished Novabase as the best partner for Cloud Services.

This investment is part of Novabase's growth and internationalization strategy for the Financial Services sector.

The percentage breakdown of Turnover and EBITDA by the different businesses, in the 9M12, is as follows:

4.1% rise in services, in line with Novabase strategic orientation to increase the added value of its offers.

Of the overall Turnover generated in 9M12, the services rendered represents 65.5%, which compares to 56.7% in 9M11.

Of the 155.6 M€ Turnover, 29.7% is generated outside Portugal, that is 46.2 M€, which compares to the 32.3 M€ registered in 9M11.

81.3% Abroad

18.7%

Portugal

Abroad 29.7%

International business increased 43.0%, reflecting a strong focus on markets outside Portugal.

Business outside Portugal generated in the Business Solutions area increased to 26.7% of the respective invoicing (16.6% in 9M11). In the IMS business area, the international business in 9M12 increased to 24.6% (14.7% in 9M11) and in the

Portugal 70.3%

Novabase had on average, in the 9M12, 2150 employees, which represents an increase of 1.4% compared to the 9M11 (2120) and of 1.9% compared to FY11 (2109).

Venture Capital area decreased to 85.2% (87.8% in 9M11).

renovation by the

Employee breakdown by business area, in 9M12, is as follows:

Average Number of Employees

Average Number of Employees by geography 9M11

Average Number of Employees by geography 9M12

2.1. Business Solutions

BS Turnover evolution reflects the significant growth of the international component (76.1% vs. 9M11).

EBITDA Business Solutions (M€)

BS positive evolution reflects the measures adopted for the improvement of operating competitiveness.

2.2. Infrastructures & Managed Services

IMS evolution reflects the strong pressure in the product component in Portugal, despite the international growth (+23.5%).

EBITDA IMS (M€)

2.3. Venture Capital

Turnover Venture Capital (M€)

-47.6% -27.6% -9.7%

EBITDA Venture Capital (M€)

VC EBITDA reflects the EBITDA % development stadium, strongly supported by R&D investments. However, remarkable improvement of profitability, primarily due to subsidiary Collab.

Excluding the shareholder remuneration, the depreciation of Novabase

share price would be 1.5%.

-2.2 -2.1 -1.0 9M10 9M11 9M12 9M12 0.7% 52.1%

3. Stock Performance

Novabase share price in 9M12 lost 2.9%, comparing to a 5.3% loss in the PSI20 Index and a 9.4% gain in the EuroStoxx Technology Index.

In this period, a dividend of 0.03€/share was distributed.

Novabase and the Market

When comparing Novabase share prices with other companies in the IT sector in Europe, we verify that Novabase share performance in 9M12 was below the average.

Novabase shows an EV/EBITDA multiple of 3.85x and an EV/Revenue multiple of 0.29x, which represents a discount of 36% and 51%, respectively, compared to the average of other companies in the IT sector in Europe.

Average upside of 92.9%, according to the analysts who cover Novabase.

The average price target disclosed by the analysts who cover Novabase is 3.92 euros, with unanimous recommendation to buy.

Rotation in 9M12 represented 11.6% of the capital and 3.7 million shares were traded, below the values in 9M11 (rotation of 14.8% of the capital and 4.7 million shares traded).

Summary	3Q12	2Q12	1Q12	4Q11	3Q11
Minimum price (€)	1.66	1.89	1.99	1.70	2.26
Maximum price (€)	2.03	2.30	2.32	2.38	2.75
Volume weighted average price (€)	1.92	2.03	2.15	1.99	2.55
Closing price at the end of the Quarter (€)	2.03	1.90	2.32	2.09	2.45
Nr. of shares traded		1,113,951 1,826,016	717,461	833,186	1,284,390
Market cap in the last day (M€)	63.7	59.7	72.9	65.6	76.9

4. Outlook 2012

The results of the 9M12 are positive, 8.5% above the middle of the range of the EBITDA Guidance, as a result of the measures implemented for the improvement of operating competitiveness. International business now accounts for 29.7% of total business and the weight of services increased to 65.5%. However, we experienced a strong pressure in the product component in Portugal, which explains the negative evolution of Turnover in this period.

We maintain our confidence in the compliance of the Guidance for 2012 regarding profitability and international market share. However, in light of the economic difficulties in Portugal, the target set initially for 2012 Turnover seems to us overly ambitious.

We believe that the results of this period are encouraging and motivate us to reaffirm the commitment to the strategic priorities defined: international growth and focus on the most distinctive added value offerings.

Consolidated Statement of Financial Position Consolidated Income Statement as at 30 September 2012 for the period of 9 months ended 30 September 2012

	30.09.12	31.12.11		30.09.12	30.09.11
	(Thousands of Euros) (Thousands of			(Thousands of	(Thousands of Euros)
Assets
Tangible assets	7,275	9,000	Sale of goods	53,677	74,634
Intangible assets	29,786	31,127	Cost of goods sold	(47,503)	(67,588)
Financial investments	1,960	1,786
Deferred income tax assets	11,878	12,387	Gross margin	6,174	7,046
Other non-current assets	15	-
			Other income
Total Non-Current Assets	50,914	54,300	Services rendered	101,921	97,916
			Supplementary income Supplementary income	62	187
Inventories	6,505	6,909	Other operating income	3,155	233
Trade debtors and accrued income	87,522	99,168
Other debtors and prepaid expenses	20,941	18,523		105,138	98,336
Derivative financial instruments	104	245
Available-for-sale financial assets	9,788	-
Cash and cash equivalents	28,844	27,157		111,312	105,382
Total Current Assets	153,704	152,002	Other expenses
			External supplies and services	(38,467)	(36,111)
Assets for continuing operations	204,618	206,302	Employee benefit expense	(57,868)	(57,760)
			(Provisions) / Provisions reversal	(409)	819
Assets for discontinued operations	-	-	Other operating expenses	(322)	(650)
Total Assets	204,618	206,302		(97,066)	(93,702)
Shareholders' Equity			Gross Net Profit (EBITDA)	14,246	11,680
Share capital	15,701	15,701	Depreciation and amortization	(4,325)	(4,459)
Treasury shares	(371)	(490)
Share premium	43,560	43,560	Operating Profit (EBIT)	9,921	7,221
Reserves and retained earnings	33,724	31,206	Financial Gains / (Losses)	(515)	(706)
Net profit	6,019	2,651
Total Shareholders' Equity	98,633	92,628	Net Profit before taxes (EBT) Income tax expense	9,406 (2,181)	6,515 (1,473)
Non-controlling interests	10,966	9,811	Non-controlling interests	(1,206)	(385)
Total Equity	109,599	102,439
			Attributable Net Profit Attributable Net Profit	6 019 ,	4 657 ,
Liabilities
Bank borrowings	7,638	10,500
Finance lease liabilities	1,065	1,528
Provisions	2,122	1,721
Deferred income tax liabilities	100	100	Other information:
Other non-current liabilities	70	308
Total Non-Current Liabilities	10,995	14,157	Turnover	155,598	172,550
			Gross margin from sales %	11.5 %	9.4 %
Bank borrowings	4,097	4,053	EBITDA margin	9.2 %	6.8 %
Trade payables	20,918	26,165	EBT % on Turnover	6.0 %	3.8 %
Other creditors and accruals	37,249	36,013	Net profit % on Turnover	3.9 %	2.7 %
Derivative financial instruments	70	461
Deferred income	21,370	22,669
Total Current Liabilities	83,704	89,361
Total Liabilities for cont. operations	94,699	103,518
Total Liabilities for discont. operations	320	345
Total Liabilities	95,019	103,863
Total Equity and Liabilities	204,618	206,302
Net Cash	28,404	14,653

	30.09.12	31.12.11		30.09.12	30.09.11	Var. %
	(Thousands of Euros) (Thousands of			(Thousands of	(Thousands of Euros)
Assets
Tangible assets	7,275	9,000	Sale of goods	53,677	74,634
Intangible assets	29,786	31,127	Cost of goods sold	(47,503)	(67,588)
Financial investments	1,960	1,786
Deferred income tax assets	11,878	12,387	Gross margin	6,174	7,046	-12.4 %
Other non-current assets	15	-
			Other income
Total Non-Current Assets	50,914	54,300	Services rendered	101,921	97,916
			Supplementary income Supplementary income	62	187
Inventories	6,505	6,909	Other operating income	3,155	233
Trade debtors and accrued income	87,522	99,168
Other debtors and prepaid expenses	20,941	18,523		105,138	98,336
Derivative financial instruments	104	245
Available-for-sale financial assets	9,788	-
Cash and cash equivalents	28,844	27,157		111,312	105,382
Total Current Assets	153,704	152,002	Other expenses
			External supplies and services	(38,467)	(36,111)
Assets for continuing operations	204,618	206,302	Employee benefit expense	(57,868)	(57,760)
			(Provisions) / Provisions reversal	(409)	819
Assets for discontinued operations	-	-	Other operating expenses	(322)	(650)
Total Assets	204,618	206,302		(97,066)	(93,702)
Shareholders' Equity			Gross Net Profit (EBITDA)	14,246	11,680	22.0 %
Share capital	15,701	15,701	Depreciation and amortization	(4,325)	(4,459)
Treasury shares	(371)	(490)
Share premium	43,560	43,560	Operating Profit (EBIT)	9,921	7,221	37.4 %
Reserves and retained earnings	33,724	31,206	Financial Gains / (Losses)	(515)	(706)
Net profit	6,019	2,651
			Net Profit before taxes (EBT)	9,406	6,515	44.4 %
Total Shareholders' Equity	98,633	92,628	Income tax expense	(2,181)	(1,473)
Non-controlling interests	10,966	9,811	Non-controlling interests	(1,206)	(385)
Total Equity	109,599	102,439	Attributable Net Profit Attributable Net Profit	6 019 ,	4 657 ,	29 2 % .
Liabilities
Bank borrowings	7,638	10,500
Finance lease liabilities	1,065	1,528
Provisions	2,122	1,721
Deferred income tax liabilities	100	100	Other information:
Other non-current liabilities	70	308
Total Non-Current Liabilities	10,995	14,157	Turnover	155,598	172,550	-9.8 %
			Gross margin from sales %	11.5 %	9.4 %
Bank borrowings	4,097	4,053	EBITDA margin	9.2 %	6.8 %
Trade payables	20,918	26,165	EBT % on Turnover	6.0 %	3.8 %

Head-office Av. D. João II, Lote 1.03.2.3, Parque das Nações, 1998-031 Lisbon, PORTUGAL Corporate Tax Payer N.º 502 280 182

Novabase S G P S S A Public Company Stock Code BVL: NBA IN Novabase S.G.P.S., S.A. Public Company - Stock Code BVL: NBA.INShare Capital 15 700 697 00 Euros Corporate Registration CRCL N Share Capital 15,700,697.00 Euros - Corporate Registration CRCL N. º 1495

Consolidated Income Statement by SEGMENTS for the period of 9 months ended 30 September 2012

(Thousands of Euros)

	Business Solutions	IMS	Venture Capital	NOVABASE
Sale of goods	1,624	44,317	7,736	53,677
Cost of goods sold	(1,192)	(40,400)	(5,911)	(47,503)
G i ross margin	432 -	3 917 , -	1 825 , -	6 174 , -
Other income
Services rendered	70,066	29,010	2,845	101,921
Supplementary income and subsidies	60	-	2	62
Other operating income	3,086	55	14	3,155
	73,212	29,065	2,861	105,138
	- 73 644 ,	- 32 982 ,	- 4 686 ,	- 111 312 111,312
Other expenses	-	-	-	-
External supplies and services	(21,998)	(14,048)	(2,421)	(38,467)
Employee benefit expense	(41,384)	(13,419)	(3,065)	(57,868)
(Provisions) / Provisions reversal	147	(352)	(204)	(409)
Other operating expenses	(174) -	(125) -	(23) -	(322) -
	(63,409) -	(27,944) -	(5,713) -	(97,066) -
Gross Net Profit (EBITDA)	10,235	5,038	(1,027)	14,246
Depreciation and amortization	- (2,702)	- (1,209)	- (414)	- (4,325)
Operating Profit (EBIT)	7,533	3,829	(1,441)	9,921
Financial Gains / (Losses)	- 116	- (437)	- (194)	- (515)
Net Profit / (Loss) before Taxes (EBT)	7,649	3,392	(1,635)	9,406
Income tax expense	- (1,603)	- (494)	- (84)	- (2,181)
Non-controlling interests	(816)	(276)	(114)	(1,206)
Attributable Net Profit / (Loss)	5,230 -	2,622 -	(1,833) -	6,019 -
Other information :
Turnover	71,690	73,327	10,581	155,598
EBITDA	10,235	5,038	(1,027)	14,246
EBITDA % on Turnover	14.3%	6.9%	-9.7%	9.2%
EBT % on Turnover	10.7%	4.6%	-15.5%	6.0%

Condensed Consolidated Accounts 3rd quarter 2012

(Unaudited)

NOVABASE S.G.P.S., S.A.

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INDEX

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS for the period of 9 months ended 30
September 2012

5

	● Condensed Consolidated Interim Statement of Financial Position as at 30 September 2012	6
	● Condensed Consolidated Interim Statement of Comprehensive Income for the period of 9 months ended 30 September 2012	7
	● Condensed Consolidated Interim Statement of Changes in Equity for the period of 9 months ended 30 September 2012	8
	● Condensed Consolidated Interim Statement of Cash Flows for the period of 9 months ended 30 September 2012	9
●	Selected Notes to the Condensed Consolidated Interim Financial Statements for the period of 9 months ended 30 September
2012		10
	Note 1. General information	10
	Note 2. Significant accounting policies	10
	Note 3. Critical accounting estimates and judgements	11
	Note 4. Seasonality	11
Note 5	Note 5. Segment Segment information	11
	Note 6. Business combinations	12
	Note 7. Property, plant and equipment and intangible assets	13
	Note 8. Deferred income tax assets and liabilities	13
	Note 9. Trade and other receivables	14
	Note 10. Cash and cash equivalents	14
	Note 11. Reserves and retained earnings	14
	Note 12. Non-controlling interests	15
	Note 13. Borrowings	15
	Note 14. Note Provisions	16
	Note 15. Trade and other payables	16
	Note 16. Other gains/(losses) - net	16
	Note 17. Income tax expense	17
	Note 18. Earnings per share	17
	Note 19. Related-party transactions	17
	Note 20. Contingencies	18
	Note 21. Events after the reporting period	18
	Note 22. Note added for translation	18

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CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS for the period of 9 months ended 30 September 2012

Condensed Consolidated Interim Statement of Financial Position as at 30 September 2012

		(Amounts expressed in thousands of Euros)
	Note	30.09.12	31.12.11
Assets
Non-Current Assets
Property, plant and equipment	7	7,275	9,000
Intangible assets	7	29,786	31,127
Investments in associates		1,795	1,621
Available-for-sale financial assets		165	165
Deferred income tax assets	8	11,878	12,387
Other non-current assets		15	-
Total Non-Current Assets		50,914	54,300
Current Assets
Inventories		6,505	6,909
Trade and other receivables	9	83,208	92,830
Accrued income		17,388	16,414
Income tax receivable		1,577	3,211
Derivative financial instruments		104	245
Other current assets		6,290	5,236
Available-for-sale financial assets		9,788	-
Cash and cash equivalents Cash and cash	10	28 844 ,	27 157 ,
Total Current Assets		153,704	152,002
Assets for discontinued operations		-	-
Total Assets		204,618	206,302
Equity
Share capital		15,701	15,701
Treasury shares		(371)	(490)
Sh i are premium		43 560 ,	43 560 ,
Reserves and retained earnings	11	33,724	31,206
Profit for the period		6,019	2,651
Total Equity attributable to owners of the parent		98,633	92,628
Non-controlling interests	12	10,966	9,811
Total Equity		109,599	102,439
Liabilities
Non-Current Liabilities
Borrowings	13	8,703	12,028
Provisions	14	2,122	1,721
Deferred income tax liabilities Other non-current liabilities	8	100 70	100 308
Total Non-Current Liabilities		10,995	14,157
Current Liabilities
Borrowings	13	5,127	5,279
Trade and other payables	15	56,554	60,935
Income tax payable		583	17
Derivative financial instruments		70	461
Deferred income and other current liabilities		21,370	22,669
Total Current Liabilities		83,704	89,361
Liabilities for discontinued operations		320	345
T t l Li biliti Total Liabilities		95 019 ,	103 863 103,863
Total Equity and Liabilities		204,618	206,302

THE ACOUNTANT THE BOARD OF DIRECTORS

The accompanying notes are an integral part of these condensed consolidated interim financial statements

Condensed Consolidated Interim Statement of Comprehensive Income for the period of 9 months ended 30 September 2012

				(Amounts expressed in thousands of Euros)
		9 M *		3 M *
	Note	30.09.12	30.09.11	30.09.12	30.09.11
Sales	5	53,677	74,634	18,308	22,083
Services rendered	5	101,921	97,916	28,737	31,339
Cost of sales		(47,503)	(67,588)	(16,806)	(19,898)
External supplies and services		(38,467)	(36,111)	(9,895)	(11,213)
Employee benefit expense		(57,868)	(57,760)	(19,366)	(19,074)
Other gains/(losses) - net	16	2,486	589	3,002	245
Depreciation and amortisation		(4,325)	(4,459)	(1,455)	(1,549)
Operating Profit		9,921	7,221	2,525	1,933
Finance income		3,400	2,454	760	267
Finance costs		(3,675)	(3,080)	(787)	(586)
Share of loss of associates		(240)	(80)	(98)	(46)
Profit Before Income Tax		9,406	6,515	2,400	1,568
Income tax expense	17	(2,181)	(1,473)	(603)	(386)
Profit for the period		7,225	5,042	1,797	1,182
Other comprehensive income for the period		-	-	-	-
Total comprehensive income for the period		7,225	5,042	1,797	1,182
Profit attributable to:
Owners of the parent		6,019	4,657	1,505	1,177
Non-controlling interests	12	1,206	385	292	5
		7,225	5,042	1,797	1,182
Total comprehensive income attributable to:
Owners of the parent		6,019	4,657	1,505	1,177
Non-controlling interests	12	1,206	385	292	5
		7,225	5,042	1,797	1,182
Earning p ser share
attributable to owners of the parent (Euros per share)
Basic earnings per share	18	0.20 Euros	0.15 Euros	0.05 Euros	0.04 Euros
Diluted earnings per share	18	0.20 Euros	0.15 Euros	0.05 Euros	0.04 Euros
9 M * - period of 9 months ended 3 M * - period of 3 months ended

THE ACOUNTANT THE BOARD OF DIRECTORS

Condensed Consolidated Interim Statement of Changes in Equity for the period of 9 months ended 30 September 2012

(Amounts expressed in thousands of Euros)

		Attributable to owners of the parent
						Stock	Reserves	Non
	Note	Share	Treasury	Share	Legal		options and retained-controlling		Total
		capital	shares	premium	reserves	reserves	earnings	interests	Equity
Balance at 1 January, 2011		15,701	(603)	43,560	2,365	1,076	30,675	5,724	98,498
Total comprehensive income for the period		-	-	-	-	-	4,657	385	5,042
Transactions with owners
Dividends	11, 12	-	-	-	-	-	(3,955)	(1,800)	(5,755)
Legal reserve		-	-	-	140	-	(140)	-	-
Treasury shares movements		-	113	-	-	-	625	-	738
Share-based payments		-	-	-	-	249	-	-	249
Foreign currency translation reserve		-	-	-	-	-	83	85	168
Transactions with owners		-	113	-	140	249	(3,387)	(1,715)	(4,600)
Changes in ownership interests in subsidiaries that do not result in a loss of control
Transactions with non-controlling interests		-	-	-	-	-	(7)	-	(7)
Balance at 30 September, 2011		15,701	(490)	43,560	2,505	1,325	31,938	4,394	98,933
Balance at 1 January, 2012		15,701	(490)	43,560	2,505	1,407	29,945	9,811	102,439
Total comprehensive income for the period		-	-	-	-	-	6,019	1,206	7,225
Transactions with owners
Dividends	11	-	-	-	-	-	(920)	-	(920)
Legal reserve		-	-	-	537	-	(537)	-	-
Treasury shares movements		-	119	-	-	-	584	-	703
Share-based payments (a)		-	-	-	-	(1,459)	1,459	-	-
Share-based payments		-	-	-	-	256	-	-	256
Foreign currency translation reserve		-	-	-	-	-	(53)	(51)	(104)
Transactions with owners		-	119	-	537	(1,203)	533	(51)	(65)
Changes in ownership interests in subsidiaries that do not result in a loss of control
Transactions with non-controlling interests		-	-	-	-	-	-	-	-
Balance at 30 September, 2012		15,701	(371)	43,560	3,042	204	36,497	10,966	109,599

(a) Transfer of the balance of share options fully vested.

THE ACOUNTANT THE BOARD OF DIRECTORS

Condensed Consolidated Interim Statement of Cash Flows for the period of 9 months ended 30 September 2012

			(Amounts expressed in thousands of Euros)
	9 M *		3 M *
Note	30 09 12 30.09.12	30 09 11 30.09.11	30 09 12 30.09.12	30 09 11 30.09.11
Cash flows from operating activities
Net Cash generated / (used) in operating activities	20,215	(6,065)	4,370	(6,461)
Cash flows from investing activities
Receipts: Proceeds on disposal of subsidiaries and associates Capital contribution by non-controlling interests of FCR II	81 1,500	81 -	81 1,500	78 -
Loan repayments received from associates	277	414	34	-
Proceeds on disposal of property plant and equipment Proceeds on disposal of property, plant and equipment Interest received	1 617	4 482	- 209	4 89
	2,476	981	1,824	171
Payments: Acquisition of subsidiaries and associates Loans granted to associates Purchases of available-for-sale financial assets	(543) (3,642) (10,000)	(738) (330) -	(83) (1,670) -	(400) (236) -
Purchases of property, plant and equipment Purchases of intangible assets	(605) (356)	(1,147) (1,808)	(251) (123)	(207) (518)
	(15,146)	(4,023)	(2,127)	(1,361)
Net Cash used in investing activities	(12,670)	(3,042)	(303)	(1,190)
Cash flows from financing activities
Receipts:
Proceeds from borrowings	-	2,489	-	96
	-	2,489	-	96
Payments: Repayments of borrowings Repayments of borrowings Dividends paid 11, 12 Payment of finance lease liabilities Interest paid	(2,822) (2,822) (920) (1,287) (823)	(3,092) (3,092) (5,755) (1,365) (636)	(603) - (450) (270)	(1,772) (1,800) (479) (206)
	(5,852)	(10,848)	(1,323)	(4,257)
Net Cash used in financing activities	(5,852)	(8,359)	(1,323)	(4,161)
Cash, cash equivalents and bank overdrafts at beginning of period	27,157	27,057	26,105	21,374
Net increase / (decrease) of cash, cash equivalents and bank overdrafts	1,693	(17,466)	2,744	(11,812)
Effect from exchange rate fluctuations on cash held	(10)	(7)	(9)	22
Cash, cash equivalents and bank overdrafts at end of period 10	28,840	9,584	28,840	9,584

9 M * - period of 9 months ended

3 M * - period of 3 months ended

THE ACOUNTANT THE THE BOARD OF DIRECTORS THE BOARD OF

Selected Notes to the Condensed Consolidated Interim Financial Statements for the period of 9 months ended 30 September 2012

1. General information

Novabase, Sociedade Gestora de Participações Sociais, SA (hereunder referred to as Novabase or Group), with its head office in Av. D. João II, Lote 1.03.2.3, Parque das Nações – 1998-031 Lisboa - Portugal, holds and manages financial holdings in other companies as an indirect way of doing business, being the Holding Company of Novabase Group.

In the second half of 2012, Novabase reorganized its Digital TV operations. Solutions geared toward TV operators were included in the Infrastructures & Managed Services business. These businesses have similar operations and maturity levels and therefore their integration will lead to an increase in overall efficiency. On the other hand, the System-in-Package (SIP) solutions were transferred to the Venture Capital business. These offers, strongly supported by R&D and intellectual property investments, will find the appropriate platform for their future development in Novabase Capital, including creation of strategic partnerships and international distribution channels. These changes came into force at the start of the second half of 2012. Accordingly, Novabase will disclose its results in the following business areas: i) Business Solutions (BS), ii) Infrastructures & Managed Services (IMS) and iii) Venture Capital (VC).

Novabase is listed on the Euronext Lisbon.

These condensed consolidated interim financial statements were approved for issue by the Board of Directors on October 25, 2012. In the opinion of the Board of Directors these financial statements fairly present the Group operations, as well as its financial position, financial performance and cash flows.

2. Significant accounting policies

These condensed consolidated interim financial statements for the period of nine months ended 30 September 2012 have been prepared in accordance with IAS 34, 'Interim financial reporting'. The condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2011, which have been prepared in accordance with IFRSs, as adopted by the European Union (EU).

These financial statements are presented in thousands of euros (EUR thousand).

These financial statements have not been audited.

Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2011, as described in those financial statements.

Taxes on income in this interim period were accrued using the tax rate that would be applicable to expected total annual earnings for the year 2012.

3. Critical accounting estimates and judgements

The preparation of interim financial statements requires Management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed consolidated interim financial statements, the significant estimates and judgments made are the same as those that applied to the consolidated financial statements for the year ended 31 December 2011.

4. Seasonality

The activity of Business Solutions and IMS is usually lower in 3rd quarter due to holiday period.

5. Segment information

In the second half of 2012, Novabase reorganized its Digital TV (DTV) operations. Solutions geared toward TV operators were included in the IMS business. The System-in-Package (SIP) solutions were transferred to the VC business.

The table below shows the amounts of each of the offerings that have been disclosed in DTV segment, in 2011, and were transferred to IMS and VC segments in 2012.

		Units of			Units of
	IMS (*)	former DTV	IMS	VC (*)	former DTV	VC
At 30 September 2011
Total segment Sales and services rendered	75,013	35,867	110,880	1,896	7,640	9,536
Inter-segment Sales and services rendered	10,441	1,233	11,674	919	835	1,754
Sales and services rendered	64,572	34,634	99,206	977	6,805	7,782
Depreciation and amortisation	(1,029)	(431)	(1,460)	(139)	(124)	(263)
Operating profit/(loss)	2,283	1,897	4,180	(1,119)	(739)	(1,858)
Finance costs – net	(564)	(102)	(666)	(22)	(22)	(44)
Share of loss of associates	-	-	-	(31)	-	(31)
Income tax expense	(1,876)	832	(1,044)	175	-	175
Profit/(Loss) from operations	(157)	2,627	2,470	(997)	(761)	(1,758)
Other information:
(Provisions) / Provisions reversal	531	132	663	-	29	29

(*) Amounts disclosed in the Report and Accounts for the 3 rd quarter of 2011.

The segment results presented below consider the new internal reporting organization, with the comparatives restated.

	Business		Venture
	Solutions	IMS	Capital	NOVABASE
At 30 September 2011
Total segment Sales and services rendered	111,031	110,880	9,536	231,447
Inter-segment Sales and services rendered	45,469	11,674	1,754	58,897
Sales and services rendered	65,562	99,206	7,782	172,550
Depreciation and amortisation	(2,736)	(1,460)	(263)	(4,459)
Operating profit/(loss)	4,899	4,180	(1,858)	7,221
Finance costs – net	84	(666)	(44)	(626)
Share of loss of associates	(49)	-	(31)	(80)
Income tax expense	(604)	(1,044)	175	(1,473)
Profit/(Loss) from operations	4,330	2,470	(1,758)	5,042
Other information:
(Provisions) / Provisions reversal	127	663	29	819

	Business		Venture
	Solutions	IMS	Capital	NOVABASE
At 30 September 2012
Total segment Sales and services rendered	119,730	85,102	12,898	217,730
Inter-segment Sales and services rendered	48,040	11,775	2,317	62,132
Sales and services rendered	71,690	73,327	10,581	155,598
Depreciation and amortisation	(2,702)	(1,209)	(414)	(4,325)
Operating profit/(loss)	7,533	3,829	(1,441)	9,921
Finance costs – net	251	(437)	(89)	(275)
Share of loss of associates	(135)	-	(105)	(240)
Income tax expense	(1,603)	(494)	(84)	(2,181)
Profit/(Loss) from operations	6,046	2,898	(1,719)	7,225
Other information:
(Provisions) / Provisions reversal	147	(352)	(204)	(409)

6. Business combinations

In the end of the 1st half of 2012, the Group acquired 100% of the share capital of Binómio, a company specialising in financial assets management solutions, for an amount indexed to its future performance. This investment is part of Novabase's growth strategy for the Financial Services sector. Binómio holds a paramount position in Portugal with insurance and pension management companies. It also has customers in the PALOPs (African Portuguese Speaking Countries), namely in Angola. This company was included in consolidation by full method, and affecting Business Solutions segment.

The total consideration of EUR 206 thousand corresponds to a contingent consideration, with an initial advanced payment of EUR 136 thousand, paid in cash, and an amount of EUR 70 thousand to be paid until 2017, depending on future goals to be achieved by the subsidiary in terms of Free Cash Flow.

The Goodwill arising from this acquisition, of EUR 249 thousand, is attributable mainly to access to the highly skilled workforce of Binómio in that market.

The consideration paid for Binómio, and the amounts of assets acquired and liabilities assumed recognised at the acquisition date, are detailed as follows:

	Jun-12
Consideration
Advanced payment in cash	136
Remaining contingent consideration	70
Total consideration	206
	Fair value
Recognised amounts of identifiable assets acquired and liabilities assumed
Property, plant and equipment and intangible assets	30
Deferred income tax assets	15
Trade and other receivables	84
Accrued income	7
Cash and cash equivalents	6
Trade and other payables	(153)
Deferred income	(32)
Total identifiable net assets	(43)
Goodwill	249
	206

7. Property, plant and equipment and intangible assets

During the periods ended at 30 September 2012 and 30 September 2011, the movements in the net book value of property, plant and equipment and intangible assets, were as follows:

	Property, plant	Intangible
	and equipment	assets
Net book value at 1 January 2011	9,836	31,229
Acquisitions / increases	2,426	1,900
Write off's / disposals	(115)	-
Change in consolidation universe	7	-
Exchange differences	(2)	-
Depreciation and amortisation	(2,609)	(1,850)
Net book value at 30 September 2011	9,543	31,279
Net book value at 1 January 2012	9,000	31,127
Acquisitions / increases	966	606
Write off's / disposals	(337)	-
Change in consolidation universe	27	3
Exchange differences	(6)	-
Depreciation and amortisation	(2,375)	(1,950)
Net book value at 30 September 2012	7,275	29,786

8. Deferred income tax assets and liabilities

The movement in the deferred income tax assets was as follows:

	30.09.12	31.12.11
Balance at 1 January	12,387	10,396
Change in consolidation universe	15	19
Reclassifications	-	(30)
Exchange differences	(7)	2
Discontinued operations	-	592
Profit or loss charge	(517)	1,408
Balance at the end of the period	11,878	12,387
The movement in the deferred income tax liabilities was as follows:
	30.09.12	31.12.11
Balance at 1 January	100	909
Profit or loss charge	-	(809)
Balance at the end of the period	100	100

The movement in deferred tax assets during the period, without taking into consideration the offsetting of balances within the same tax jurisdiction, is as follows:

	Tax	Tax	Provisions /
	Losses	Incentives	Adjustments	Total
Balance at 1 January 2011	2,372	6,350	1,674	10,396
Profit or loss charge	(51)	1,340	119	1,408
Reclassifications	(30)	-	-	(30)
Change in consolidation universe	19	-	-	19
Exchange differences	2	-	-	2
Discontinued operations	592	-	-	592
Balance at 31 December 2011	2,904	7,690	1,793	12,387
Profit or loss charge	(597)	227	(147)	(517)
Change in consolidation universe	15	-	-	15
Exchange differences	(7)	-	-	(7)
Balance at 30 September 2012	2,315	7,917	1,646	11,878

9. Trade and other receivables

	30.09.12	31.12.11
Trade receivables	73,002	85,608
Allowance for impairment of trade receivables	(2,868)	(2,854)
	70,134	82,754
Prepayments to suppliers	1,334	546
Employees	163	133
Value added tax	812	650
Receivables from related parties (note 19)	4,026	597
Financial investments disposal	68	146
Receivables from financed projects	2,990	3,040
Capital subscribers of FCR NB Capital Inovação e Internacionalização	2,350	3,850
Other receivables	4,936	4,775
Allowance for impairment of other receivables	(3,605)	(3,661)
	13,074	10,076
	83,208	92,830

Movements in allowances for impairment of trade and other receivables are analysed as follows:

	Trade receivables		Other receivables		Total
	30.09.12	31.12.11	30.09.12	31.12.11	30.09.12	31.12.11
Balance at 1 January	2,854	2,012	3,661	3,442	6,515	5,454
Change in consolidation universe	7	62	-	-	7	62
Impairment	207	988	-	218	207	1,206
Impairment reversal	(125)	(208)	(55)	-	(180)	(208)
Recovery of bad debts	-	-	-	1	-	1
Exchange differences	-	-	(1)	-	(1)	-
Write off's	(75)	-	-	-	(75)	-
	2,868	2,854	3,605	3,661	6,473	6,515

10. Cash and cash equivalents

With reference to the consolidated statement of cash flows, the detail and description of Cash, cash equivalents and bank overdrafts is analysed as follows:

	30.09.12	31.12.11
- Cash	45	24
- Short term bank deposits	28,799	27,133
Cash and cash equivalents	28,844	27,157
- Overdrafts	(4)	-
	28,840	27,157

11. Reserves and retained earnings

In the annual General Meeting of Shareholders held on 3 May 2012, it was approved the payment to shareholders of an amount of EUR 942 thousand, corresponding to 0.03 Euros per share. The payment occurred in June, 2012.

	30.09.12	30.09.11
Payment to shareholders	920	3,955
Remuneration of the treasury shares held by the Company	22	127
	942	4,082

12. Non-controlling interests

	30.09.12	31.12.11
Balance at 1 January	9,811	5,724
(*) Change in consolidation universe	-	5,500
Dividends paid by Celfocus to non-controlling interests	-	(1,800)
Foreign currency translation differences for foreign operations	(51)	98
Profit attributable to non-controlling interests	1,206	289
Balance at the end of the period	10,966	9,811

(*) In 2011, FCR NB Capital Inovação e Internacionalização was incorporated.

13. Borrowings

	30.09.12	31.12.11
Non-current
Bank borrowings	7,638	10,500
Finance lease liabilities	1,065	1,528
	8,703	12,028
Current
Bank borrowings	4,097	4,053
Finance lease liabilities	1,030	1,226
	5,127	5,279
Total borrowings	13,830	17,307

The periods in which the current bank borrowings will be paid are as follows:

	30.09.12	31.12.11
6 months or less 6 to 12 months	2,022 2,075	2,269 1,784
	4,097	4,053

The maturity of non-current bank borrowings is as follows:

	30.09.12	31.12.11
Between 1 and 2 years	3,150	3,650
Between 2 and 5 years	4,488	6,775
Over 5 years	-	75
	7,638	10,500

The effective interest rates at the reporting date were as follows:

Bank borrowings	5.260%	5.359%
Bank overdrafts	1.474%	N/A

30.09.12 31.12.11

Gross finance lease liabilities – minimum lease payments:

	30.09.12	31.12.11
No later than 1 year	1,370	1,672
Between 1 and 5 years	1,381	2,004
	2,751	3,676
Future finance charges on finance leases	(656)	(922)
Present value of finance lease liabilities	2,095	2,754

The present value of finance lease liabilities is analysed as follows:

	30.09.12	31.12.11
No later than 1 year	1,030	1,226
Between 1 and 5 years	1,065	1,528
	2,095	2,754

14. Provisions

Movements in provisions are analysed as follows:

		Legal	Other Risks
	Warranties	Claims	and Charges	Total
Balance at 1 January 2011	380	484	769	1,633
Additional provisions	198	-	518	716
Reversals	(177)	(244)	(727)	(1,148)
Reclassifications	500	-	-	500
Change in consolidation universe	-	-	20	20
Balance at 31 December 2011	901	240	580	1,721
Additional provisions	145	-	1,386	1,531
Reversals	(283)	-	(834)	(1,117)
Exchange differences	-	-	(13)	(13)
Balance at 30 September 2012	763	240	1,119	2,122

15. Trade and other payables

	30.09.12	31.12.11
Trade payables	19,888	24,939
Remunerations, vacations and vacation and Christmas subsidies	10,066	8,147
Restructuring costs not yet paid	335	546
Bonus	7,763	7,442
Ongoing projects	4,079	3,727
Value added tax	4,838	7,263
Social security contributions	1,126	2,026
Income tax withholding	959	1,590
Employees	292	288
Prepayments from trade receivables	1,287	-
Acquisition of financial interests to related parties (note 19)	205	714
Acquisition of financial interest in Evolvespace Solutions	151	86
Other accrued expenses	5,348	4,027
Other payables	217	140
	56,554	60,935

16. Other gains/(losses) - net

	30.09.12	30.09.11
Impairment and impairment reversal of trade and other receivables	(27)	(14)
Impairment and impairment reversal of inventories	32	379
Warranties provision	138	19
Provisions for other risks and charges	(552)	435
Operating subsidies	(4)	113
Compensation paid to Novabase - Electronic School Card	2,697	-
Other operating income and expense	202	(343)
	2,486	589

17. Income tax expense

The tax on the Group's profit before tax differs from the theoretical amount that would arise using the weighted average rate applicable to profits of the consolidated entities as follows:

	30.09.12	30.09.11
Profit before income tax	9,406	6,515
Income tax expense at nominal rate (25%)	2,352	1,629
Tax benefit on the net creation of employment for young and long term unemployed people	(350)	(391)
Provisions and amortisations not considered for tax purposes	155	226
Associates' results reported net of tax	60	20
Autonomous taxation	487	7
Losses in companies where no deferred tax is recognised	(119)	42
Expenses not deductible for tax purposes	(121)	21
Differential tax rate on companies located abroad	115	(84)
Research & Development tax benefit	(864)	(335)
Municipal surcharge and State surcharge	136	137
Impairment of Special Payment on Account, tax losses and withholding taxes	179	208
Other	151	(7)
Income tax expense	2,181	1,473

18. Earnings per share

	30.09.12	30.09.11
Weighted average number of ordinary shares in issue	30,579,175	30,361,154
Stock options adjustment	-	-
Adjusted weighted average number of ordinary shares in issue	30,579,175	30,361,154
Profit attributable to owners of the parent	6,019	4,657
Basic earnings per share (Euros per share)	0.20 Euros	0.15 Euros
Diluted earnings per share (Euros per share)	0.20 Euros	0.15 Euros

19. Related-party transactions

For reporting purposes, related-party consider subsidiaries, associates, shareholders with management influence and key elements in the Group management.

i) Key management compensation

		30.09.12	30.09.11
	Salaries and other short-term employee benefits	4,208	3,694
	Stock options granted	256	249
		4,464	3,943
ii)	Acquisition of financial interests to related parties
		30.09.12	31.12.11
	Acquisitions to former shareholders of Novabase Infraestruturas, SGPS	-	7
		-	7

iii) Balances arising from acquisitions of financial interests to related parties (former shareholders)

	Non-current		Current (note 15)		Total
	30.09.12	31.12.11	30.09.12	31.12.11	30.09.12	31.12.11
Novabase Consulting SGPS	-	-	-	306	-	306
Novabase A.C.D.	-	78	40	109	40	187
SAF	-	32	32	33	32	65
Novabase International Solutions B.V.	-	133	133	266	133	399
	-	243	205	714	205	957

iv) Other balances with related parties

		30.09.12	31.12.11
	Loan to Novabase Atlântico, SI, S.A. (associate)	642	550
	Loan to Powergrid, Lda (associate)	550	-
(*)	Loan to DTV Research, Lda (associate)	1,310	-
(*)	Loan to Bright Innovation, Lda (associate)	1,477	-
	Loans to other shareholders	47	47
	Receivables from related parties (note 9)	4,026	597

(*) New investment from FCR NB Capital Inovação e Internacionalização.

20. Contingencies

Given the disclosed in the annual financial statements for the year 2011, the significant changes in the judicial processes are the following:

• It was cancelled the procedures brought forward by the Instituto de Gestão Financeira da Segurança Social to Novabase E.A. regarding the alleged absence of payment of social security contributions in the years 2004, 2005, 2006 and 2007, in the amount of EUR 42 thousand and EUR 20 thousand.
• Court procedure brought against Novabase S.G.P.S. and Novabase Capital, under which the plaintiff claims the payment of EUR 905 thousand, plus interests accrued until full payment, as well as the payment of the damages it suffered in a value yet to be established within the procedure. Final ruling has been issued by the Court which was totally in favour of the defendants. The Plaintiff has filed an appeal on the decision. The Appeals Court decided in favour of Novabase, wherein the plaintiff filed an appeal to the Supreme Court of Justice. The procedure awaits decision on this appeal.
• It was cancelled the procedure brought forward by the Instituto de Gestão Financeira da Segurança Social to Novabase Business Solutions S.A. regarding the alleged absence of payment of social security contributions in the years 2004, 2005, 2006 and 2007, in the amount of EUR 131 thousand.
• The claims brought forward by the Instituto de Gestão Financeira da Segurança Social to NBO regarding the alleged absence of payment of social security contributions (in the amount of EUR 85 thousand and EUR 438 thousand) were cancelled.
• It was cancelled the procedure brought forward by the Instituto de Gestão Financeira da Segurança Social to Octal regarding to alleged absence of payment of social security contributions in the years 2006 to 2010, in the amount of EUR 20 thousand.
• The judge issued final ruling in the procedure brought forward by a shareholder of Manchete where Fundo Capital Risco NB Capital (which is managed by the subsidiary Novabase Capital) is co-defendant, in which the Plaintiff was claiming violation of the Shareholders Agreement and requested (i) payment of a compensation in the amount of EUR 446 thousand in lieu of remunerations he would have received for the remaining period that the Shareholders Agreement would remain in force; (ii) an amount equal to 8.5% of company results before tax related to the years 2010 and further until final decision on the proceeding is issued; (iii) that the defendants were ordered to buy the plaintiff's shares for the price of EUR 750 thousand. The judge issued final ruling in favour of the Defendants, considering that the Plaintiff had not observed certain essential contractual formalities before bringing the issue to Court.
• IMS has filed insolvency procedure against Alfasom, claiming credits in the amount of approximately EUR 88 thousand. After creditor's Assembly, the Judge issued a ruling determining the dissolution and sale of assets to pay the Creditor's.
• It was closed the procedure brought by Fazenda Nacional do Brazil (Brazilian Tax Authority) against Forward Brasil Tecnologias de Informação Ltda (previously named Novabase Brasil, Ldta), referring to tax liabilities concerning the years of 2002 and 2003.

21. Events after the reporting period

No events worthy of note happened until the date of conclusion of this report.

22. Note added for translation

These financial statements are a translation of financial statements originally issued in Portuguese. In the event of discrepancies, the Portuguese language version prevails.