Head Office: Rua João Mendonça, 529 – 4464-501 Senhora da Hora

Share Capital 1.000.000.000 Euro

Porto Commercial Registry and Fiscal Number 501 532 927

REPORT AND ACCOUNTS

30 September 2010

Management Report Sonae Investimentos – S.G.P.S., S.A.

In accordance with Portuguese Law and the company's articles of association, we hereby present the management report of Sonae Distribuição - S.G.P.S., S.A. for the first nine months of 2010.

Activity evolution

During the course of the nine months of 2010, the consolidated turnover of Sonae Investimentos totalled 3.455 million Euro, which corresponds to an increase of 7% compared to the same period in the previous year. Of the overall amount realised in the period, circa 75 million Euro corresponds to petrol sales.

In the same period, the Company´s operating cash-flow (EBITDA) reached 264 million Euro. This figure represents an increase of 49 million Euro in relation to the same period in 2009, or +23%, and reflects the strengthening of 1 percentage points in the operating profitability margin of the Company to 7,6%.

In terms of operating results (EBIT), the consolidated figure reached 146 million Euro in the period, which represents an increase of 34 million Euro compared to the first nine months of 2009.

During this period, Sonae Investimentos consolidated net result totalled 92 million Euro, 27 million Euro above the total realised in the same period of 2009. The Company´s good performance once again confirms the progresses that were attained and the value of the defined strategy.

At the end of September, Sonae Investimentos detained an overall portfolio of 970 stores, corresponding to a sales area of 931.000 m2. At this time, the Company´s store portfolio in Spain consisted of 61 units with 84.000 m2 worth of sales area – corresponding to almost 10% of the overall referential.

During the first nine months of 2010, the Company strengthened its presence in Portugal opening 34 units representing an additional 12.000 m2 of sales area. In the Spanish market, the Company continued its strong pace of store openings, having inaugurated an additional 28.000 m2 worth of sales area, corresponding to an increase of circa 50% compared to the referential of December 2009, divided amongst 23 new units.

The effort to modernise the existing store portfolio was not neglected, and in parallel the effort to develop the business support infrastructure was continued, with particular highlight to what concerns the logistics infrastructure. On the whole, during the first nine months of the year, the Company invested a total of circa 136 million Euro.

Capital structure

On 30th September 2010, Sonae Investimentos consolidated net debt totalled 1.394 million Euro. This figure, which represents a decrease compared to the 1.539 million Euro reported at the end of the same period of 2009, is directly impacted by the capacity to generate cash-flow witnessed in the first half of the year, in addition to the completion of the aforementioned investments.

Outlook

Sonae Investimentos strategic guidelines privilege growth and the strengthening of the value proposition based on a continued investment in efficiency and innovation. This positioning, consistently adopted by the Company, has allowed for the combination of strong growth rhythms with strong profitability benchmarks, and once again will be at the basis of the Company´s performance during the course of the next months.

Matosinhos, 15 November 2010

The Board of Directors,

______________________________________ Duarte Paulo Teixeira de Azevedo

______________________________________ Ângelo Gabriel Ribeirinho dos Santos Paupério

______________________________________ Nuno Manuel Moniz Trigoso Jordão

Glossary

Turnover (t)

sale of articles + services rendered.

Operating Cash-flow (EBITDA)

turnover + gains or losses relative to investments + other income – negative consolidation differences– reversal of losses by impairment – operating costs

Operating results (EBIT)

consolidated net profit for the period – income tax + profits/losses of associated companies – net financial expenses.

Net Investment

increase in gross fixed assets (tangible and intangible) + changes in perimeter (as a result of acquisitions and disposals) + disposals in gross fixed assets (tangible and intangible) + increases in consolidation differences. To calculate the investment in acquisitions (measured by changes occurred in consolidation perimeter) the net accumulated amortizations were considered

Net debt

current borrowings + noncurrent borrowings + financial leasing creditors – cash and cash equivalents – other current financial investments + borrowings from participating and/or participated companies – borrowings to participating and/or participated companies

Gearing

ratio between net financial debt and the company´s shareholder´s funds

Net Capital Employed

gross real estate assets + other gross real estate assets (including Goodwill) + amortisations and impairment losses + financial investments + working capital

Condensed consolidated

financial statements

CONDENSED CONSOLIDATED BALANCE SHEET AT 30 SEPTEMBER 2010 AND 2009 AND AT 31 DECEMBER 2009

(Translation of condensed consolidated financial statements originally issued in Portuguese.

In case of discrepancies the Portuguese version prevails.)

(Amounts expressed in euro)

	Notes	30 September 2010	30 September 2009	31 December 2009

NON-CURRENT ASSETS:
Tangible assets	9	2,160,745,520	2,185,484,661	2,198,493,423
Intangible assets	10	152,489,471	161,368,151	162,320,303
Goodwill	11	520,275,996	519,741,426	519,885,038
Investments in Associates	6	1,688,733	2,081,100	2,376,473
Other investments	7	763,618	774,777	763,866
Deferred tax assets	15	105,205,701	80,103,844	90,471,037
Other non-current assets	13	16,502,628	3,140,614	4,336,556
Total Non-Current Assets		2,957,671,667	2,952,694,573	2,978,646,696

CURRENT ASSETS:
Inventories		611,891,426	586,537,467	588,968,421
Trade account receivable and other current assets	14	221,880,374	241,491,741	226,094,606
Investments	12	48,578,967	56,343,697	57,659,791
Cash and cash equivalents	16	60,706,456	44,003,855	111,407,067
Total Current Assets		943,057,223	928,376,760	984,129,885


TOTAL ASSETS		3,900,728,890	3,881,071,333	3,962,776,581
EQUITY AND LIABILITIES

EQUITY:
Share capital	17	1,000,000,000	1,000,000,000	1,000,000,000
Reserves and retained earnings		(99,655,725)	(166,435,338)	(165,954,941)
Profit/(Loss) for the period attributable to the equity holders of the parent company		91,605,489	65,601,725	138,171,091
Equity attributable to the equity holders of the parent company		991,949,764	899,166,387	972,216,150
Equity attributable to non-controlling interests		74,766,887	74,919,378	74,344,125
TOTAL EQUITY		1,066,716,651	974,085,765	1,046,560,275

LIABILITIES:
NON-CURRENT LIABILITIES:
Loans	18	1,452,917,523	1,478,679,529	1,282,197,164
Other non-current liabilities	20	24,731,310	15,700,250	16,222,928
Deferred tax liabilities	15	106,947,127	90,658,600	96,744,418
Provisions	23	13,850,935	11,505,205	9,263,092
Total Non-Current Liabilities		1,598,446,895	1,596,543,584	1,404,427,602
CURRENT LIABILITIES:
Loans	18	29,062,082	120,875,106	103,930,898
Trade creditors and other current liabilities	22	1,204,593,472	1,187,897,990	1,405,368,923
Provisions	23	1,909,790	1,668,888	2,488,883
Total Current Liabilities		1,235,565,344	1,310,441,984	1,511,788,704

TOTAL LIABILITIES		2,834,012,239	2,906,985,568	2,916,216,306

TOTAL EQUITY AND LIABILITIES		3,900,728,890	3,881,071,333	3,962,776,581

The accompanying notes are part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED INCOME STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Translation of condensed consolidated financial statements originally issued in Portuguese.

In case of discrepancies the Portuguese version prevails.)

(Amounts expressed in euro)

	Notes	3rd Quarter 2010	3rd Quarter 2009		30 September 2010 30 September 2009
Sales		1,189,025,563	1,144,931,755	3,349,936,066	3,135,054,810
Services rendered		40,335,203	35,608,689	105,238,808	93,403,670
Investment income	8	226	(26,000)	6,038,248	1,654,051
Financial income		738,899	3,445,537	1,620,167	6,460,833
Other income		95,074,343	77,189,128	301,599,878	282,888,606
Cost of goods sold and materials consumed		(902,875,210)	(887,788,727)	(2,588,038,375)	(2,456,932,779)
Changes in stocks of finished goods and work in progress		(176,378)	-	120,119	-
External supplies and services		(155,711,562)	(145,325,768)	(444,060,218)	(416,669,924)
Staff costs		(128,148,760)	(122,530,366)	(395,782,568)	(372,438,081)
Depreciation and amortisation	9 e 10	(39,538,871)	(36,077,651)	(116,985,634)	(101,596,843)
Provisions and impairment losses	23	(1,630,692)	(1,057,271)	(8,420,145)	(3,417,219)
Financial expense		(10,994,061)	(11,630,991)	(34,688,344)	(46,581,283)
Other expenses		(26,481,661)	(13,289,956)	(64,860,731)	(48,822,393)
Share of results of associated undertakings	6	44,773	282,198	435,243	(948,046)
Profit/(Loss) before taxation		59,661,812	43,730,577	112,152,514	72,055,402
Taxation	26	(8,961,506)	(6,527,155)	(19,958,640)	(7,173,185)
Profit/(Loss) after taxation		50,700,306	37,203,422	92,193,874	64,882,217
Attributable to:
Equity holders of the parent company		50,459,676	37,089,522	91,605,489	65,601,725
Non-controlling interests		240,630	113,900	588,385	(719,508)
Profit/(Loss) per share
Basic	27	0.050460	0.037090	0.091605	0.065602
Diluted	27	0.050460	0.037090	0.091605	0.065602

The accompanying notes are part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Translation of condensed consolidated financial statements originally issued in Portuguese.

In case of discrepancies the Portuguese version prevails.)

(Amounts expressed in euro)

	3rd Quarter 2010	3rd Quarter 2009		30 September 2010 30 September 2009
Net Profit / (Loss) for the period	50,700,306	37,203,422	92,193,874	64,882,217
Exchange differences arising on translation of foreign operations	(67,249)	60,193	254,340	172,212
Changes in hedge and fair value reserves	(2,794,497)	152,242	(1,380,623)	(2,680,505)
Deferred tax related to changes in fair value reserves	(305,971)	(40,345)	(680,647)	981,953
Other comprehensive income for the period	(3,167,717)	172,090	(1,806,930)	(1,526,340)
Total comprehensive income for the period	47,532,589	37,375,512	90,386,944	63,355,877
Attributable to:
Equity holders of the parent company	47,362,194	37,261,612	89,868,794	64,075,385
Non-controlling interests	170,395	113,900	518,150	(719,508)

The accompanying notes are part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009 (Translation of condensed consolidated financial statements originally issued in Portuguese.

In case of discrepancies the Portuguese version prevails.)

(Amounts expressed in euro)

		Attributable to Equity Holders of the Parent Company
					Reserves and Retained Earnings
		Share	Legal	Currency Translation	Hedging	Other Reserves and Retained	Total	Net	Total	Non-controlling Interests	Total Equity
	Notes	Capital	Reserve	Reserve	Reserve	Earnings		Profit/(Loss)
Balance as at 1 January 2009		1,000,000,000	99,300,000	3,666	(3,316,342)	(346,889,834)	(250,902,510)	170,993,512	920,091,002	11,201,548	931,292,550
Total comprehensive income for the period		-	-	172,212	(1,698,552)	-	(1,526,340)	65,601,725	64,075,385	(719,508)	63,355,877
Appropriation of profit of 2008:
Transfer to legal reserves and retained earnings	28	-	14,700,000	-	-	156,293,512	170,993,512	(170,993,512)	-	-	-
Dividends distributed	28	-	-	-	-	(85,000,000)	(85,000,000)	-	(85,000,000)	(4,169)	(85,004,169)
Aquisitions of shares of affiliated undertakings		-	-	-	-	-	-	-	-	63,441,507	63,441,507
Others		-	-	-	-	-	-	-	-	1,000,000	1,000,000
Balance as at 30 September 2009		1,000,000,000	114,000,000	175,878	(5,014,894)	(275,596,322)	(166,435,338)	65,601,725	899,166,387	74,919,378	974,085,765
Balance as at 1 January 2010		1,000,000,000	114,000,000	82,609	(4,441,228)	(275,596,322)	(165,954,941)	138,171,091	972,216,150	74,344,125	1,046,560,275
Total comprehensive income for the period		-	-	254,340	(1,991,035)	-	(1,736,695)	91,605,489	89,868,794	518,150	90,386,944
Appropriation of profit of 2009:
Transfer to legal reserves and retained earnings	28	-	3,087,918	-	-	135,083,173	138,171,091	(138,171,091)	-	-	-
Dividends distributed	28	-	-	-	-	(70,000,000)	(70,000,000)	-	(70,000,000)	-	(70,000,000)
Aquisitions of shares of affiliated undertakings		-	-	-	-	(74,567)	(74,567)	-	(74,567)	(95,388)	(169,955)
Others		-	-	-	-	(60,613)	(60,613)	-	(60,613)	-	(60,613)
Balance as at 30 September 2010		1,000,000,000	117,087,918	336,949	(6,432,263)	(210,648,329)	(99,655,725)	91,605,489	991,949,764	74,766,887	1,066,716,651

The accompanying notes are part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009 (Translation of condensed consolidated financial statements originally issued in Portuguese. In case of discrepancies the Portuguese version prevails.)

(Amounts expressed in euro)

	Notes	3rd Quarter 2010	3rd Quarter 2009	30 September 2010	30 September 2009
OPERATING ACTIVITIES
Net cash flow from operating activities (1)		95,579,482	110,444,876	34,418,430	120,295,684
INVESTMENT ACTIVITIES
Cash receipts arising from:
Investments		38,288	3,406,851	33,397,875	4,406,851
Tangible and intangible assets		26,047,140	2,693,653	43,150,264	6,450,326
Interest and similar income		283,109	615,376	783,652	4,174,736
Loans granted		58,275,000	1,954,186	60,940,000	4,223,500
Dividends	28	225	261,660	1,333,374	461,660
Others		-	-	9,800,158	-
		84,643,762	8,931,726	149,405,323	19,717,073
Cash Payments arising from:
Investments		-	(2,887,702)	(3,480,116)	(18,517,338)
Tangible and intangible assets		(48,585,818)	(104,926,158)	(174,427,779)	(276,287,661)
Loans granted		(58,275,000)	(2,644,000)	(59,940,000)	(2,644,000)
Others		-	(302)	-	(1,728)
		(106,860,818)	(110,458,162)	(237,847,895)	(297,450,727)
Net cash used in investment activities (2)		(22,217,056)	(101,526,436)	(88,442,572)	(277,733,654)
FINANCING ACTIVITIES
Cash receipts arising from:
Loans obtained		1,193,338,000	2,927,048,162	4,365,303,750	8,315,273,000
Cover of accumulated losses		-	1,000,000	-	1,000,000
		1,193,338,000	2,928,048,162	4,365,303,750	8,316,273,000
Cash Payments arising from:
Loans obtained		(1,239,661,781)	(2,957,880,948)	(4,250,687,562)	(8,099,832,161)
Interest and similar charges		(14,856,898)	(18,193,891)	(33,045,887)	(61,861,655)
Dividends		-	-	(70,000,000)	(85,004,170)
Others		(69,676)	(104,522)	(277,613)	(318,152)
		(1,254,588,355)	(2,976,179,361)	(4,354,011,062)	(8,247,016,138)
Net cash used in financing activities (3)		(61,250,355)	(48,131,199)	11,292,688	69,256,862
Net increase in cash and cash equivalents (4) = (1) + (2) + (3)		12,112,071	(39,212,759)	(42,731,454)	(88,181,108)
Effect of foreign exchange rate		(3,443)	(77,499)	(105,849)	(219,656)
Cash and cash equivalents at the beginning of the period	16	33,600,663	43,043,867	88,341,782	91,870,059
Cash and cash equivalents at the end of the period	16	45,716,177	3,908,607	45,716,177	3,908,607

The accompanying notes are part of these condensed consolidated financial statements.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2010

(Amounts expressed in euro)

(Translation of condensed consolidated financial statements originally issued in Portuguese. In case of discrepancies the Portuguese version prevails.)

1 INTRODUCTION

SONAE INVESTIMENTOS, SGPS, S.A. ("the Company" or "Sonae Investimentos"), with head office in Rua João Mendonça nº 529, 4464-501 Senhora da Hora, Portugal, is the Parent-company of a group of companies, as detailed in Notes 4, 5 and 6 ("Sonae Investimentos Group"), which business activity is described in the 29th note.

2 PRINCIPAL ACCOUNTING POLICIES

The accounting policies adopted are consistent with those used in the preparation of the consolidated financial statements for the period ended as at 31 December 2009, with the exception of those described in Note 3.

2.1 Basis of preparation

Interim financial statements are presented quarterly, in accordance with IAS 34 – "Interim Financial Reporting".

The accompanying condensed consolidated financial statements have been prepared from the books and accounting records of the Company, subsidiaries and joint ventures, adjusted in the consolidation process, on a going concern basis and under the historical cost convention, except for financial instruments which are stated at fair value.

3 CHANGES IN ACCOUNTING POLICIES

During the period it was adopted a set of accounting standards, interpretations, amendments and revisions issued in previous periods and whose implementation became mandatory during the financial year 2010 as disclosed in the financial statements presented for the period ended as at 31 December 2009 and which, except as described below, didn't have any significant impacts on the financial statements as at 30 September 2010.

During the period it has been adopted for the first time the revised version of IFRS 3 – Business combinations (revised 2008) and IAS 27 – Consolidated and separate financial statements (revised 2008).

These changes brought some modifications in the accounting policies of recording business combinations, in particular:

(a) the calculation of goodwill and the measurement of non-controlling interests (previously referred to as minority interests): introduced the option, on transaction-by-transaction basis, of calculating the value of non-controlling interests at fair value of assets and liabilities acquired, or their share of the identifiable net assets of the acquire. Additionally, goodwill is now calculated as the difference between the acquisition price of the participation plus the noncontrolling interests and the fair value of the assets and liabilities acquired;
(b) the recognition and subsequent accounting requirements for contingent consideration: whereas, under the previous version of the Standard, contingent consideration was recognized at the acquisition date only if it met probability and reliably measurable criteria, under the revised Standard that consideration for the acquisition always includes the fair value of any contingent consideration. Once the fair value of the contingent consideration for the acquisition date has been determined, subsequent adjustments are made against goodwill only to the extent that they reflect fair value at the acquisition date, and they occur within the 'measurement period' (a maximum of 12 months form the acquisition date). Under the previous version of the Standard, adjustments to consideration were always made against goodwill;
(c) the accounting treatment of acquisition-related costs: they are generally recorded as expenses in the periods in which they are incurred, and don't influence the acquisition price;
(d) the accounting of purchase transactions of entities already controlled by the entity and sale transactions that don't imply the loss of control: until the adoption of the revised version of IAS 27 an increase in equity interests in a subsidiary implied the calculation of goodwill, and a loss on the percentage of control would give rise to a profit or loss in that period. With this new standard, transactions whereby the parent entity acquires further equity interests or disposes of equity interest but without losing control, are accounted for as equity transactions and only affect the company's equity, there is no recognition of goodwill or profit or loss in the period;
(e) the calculation of the profit or loss associated with disposal of equity interests in a subsidiary with loss of control and subsequent accounting for a residual interest: according to the new version of the standard as a result of the loss of control, the assets and liabilities of the disposed subsidiary should be derecognised and any interest retained on the entity should be remeasured at fair value. The value received as a result of the sale plus the effect of remeasurement is registered as profit or loss of the period.

4 GROUP COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

The subsidiaries included in the consolidated financial statements, its head offices and percentage of capital held as at 30 September 2010 and 31 December 2009 are as follows:

			Percentage of capital held
			30.September.2010			31.December.2009
COMPANY		Head Office	Direct	Total	Direct	Total
Sonae Investimentos- SGPS, S.A.		Matosinhos	HOLDING	HOLDING	HOLDING	HOLDING
Arat Inmuebles, SA	a)	Madrid (Spain)	100.00%	100.00%	100.00%	100.00%
Azulino Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
BB Food Service, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%

SONAE INVESTIMENTOS, SGPS, SA

	Bertimóvel - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
	Best Offer - Prestação de Informações por Internet, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
	Bikini, Portal de Mulheres, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
	Bom Momento - Comércio Retalhista, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
	Canasta - Empreendimentos Imobiliários, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
	Carnes do Continente - Industria e Distribuição Carnes, SA	a)	Santarém	100.00%	100.00%	100.00%	100.00%
	Chão Verde - Sociedade de Gestão Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
	Citorres - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
	Contibomba - Comércio e Distribuição de Combustíveis, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
	Contimobe - Imobiliária de Castelo de Paiva, SA	a)	Castelo de Paiva	100.00%	100.00%	100.00%	100.00%
	Continente Hipermercados, SA	a)	Lisbon	100.00%	100.00%	100.00%	100.00%
	Cumulativa - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
2)	Difusão - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
	Edições Book.it, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
	Efanor - Design e Serviços, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
	Estevão Neves - Hipermercados da Madeira, SA	a)	Madeira	100.00%	100.00%	100.00%	100.00%
	Farmácia Selecção, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
	Fozimo - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
	Fozmassimo - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
	Fundo de Investimento Imobiliário Fechado Imosede	a)	Maia	54.55%	54.55%	54.55%	54.55%
	Fundo de Investimento Imobiliário Fechado Imosonae Dois	a)	Maia	100.00%	100.00%	100.00%	100.00%
	Global S - Hipermercado, Lda	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
	Good and Cheap - Comércio Retalhista, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
	Hipotética - Comércio Retalhista, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%

SONAE INVESTIMENTOS, SGPS, SA

Igimo - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Iginha - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Imoconti - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Imoestrutura - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Imomuro - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Imoresultado - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Imosistema - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Infofield - Informática, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Inventory - Acessórios de Casa, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Just Sport - Comércio de Artigos de Desporto, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Marcas MC, zRT	a)	Budapest (Hungary)	100.00%	100.00%	100.00%	100.00%
MJLF - Empreendimentos Imobiliários, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
MC - SGPS, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Modalfa - Comércio e Serviços, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Modalloop – Vestuário e Calçado, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Modelo - Distribuição de Materiais de Construção, SA	b)	Maia	50,00%	50,00%	50,00%	50,00%
Modelo Continente Hipermercados, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Modelo Continente Seguros - Sociedade Mediação, SA	a)	Porto	75.00%	75.00%	75.00%	75.00%
Modelo Hiper Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Modelo Hipermercados Trading, SA	a)	Madrid (Spain)	100.00%	100.00%	100.00%	100.00%
Modelo.com - Vendas p/Correspond., SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
NA - Comércio de Artigos de Desporto, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
NA - Equipamentos para o Lar, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Peixes do Continente - Indústria e Distribuição de Peixes, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Pharmacontinente - Saúde e Higiene, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Pharmaconcept – Actividades em Saúde, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%

SONAE INVESTIMENTOS, SGPS, SA

Predicomercial - Promoção Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Selifa - Empreendimentos Imobiliários de Fafe, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Sempre à Mão - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Sesagest - Proj.Gestão Imobiliária, SA	a)	Porto	100.00%	100.00%	100.00%	100.00%
Socijofra - Sociedade Imobiliária, SA	a)	Gondomar	100.00%	100.00%	100.00%	100.00%
Sociloures - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Soflorin, BV	a)	Amsterdam (The Netherlands)	100.00%	100.00%	100.00%	100.00%
Solaris Supermercados, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Sonae Capital Brasil, Lda	a)	São Paulo (Brazil)	100.00%	100.00%	100.00%	100.00%
Sonaecenter Serviços II, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Sonaerp – Retail Properties, SA	a)	Porto	100.00%	100.00%	100.00%	100.00%
Sonae Specialized Retail, SGPS, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Sonae Retalho España - Servicios Generales, SA	a)	Madrid (Spain)	100.00%	100.00%	100.00%	100.00%
SIAL Participações, Ltda	a)	São Paulo (Brazil)	100.00%	100.00%	100.00%	100.00%
Sondis Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Sontária - Empreendimentos Imobiliários, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Sonvecap, BV	a)	Amsterdam (The Netherlands)	100.00%	100.00%	100.00%	100.00%
Sport Zone - Comércio de Artigos de Desporto, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
1) Sport Zone Canarias, SL	a)	Tenerife (Spain)	51,00%	51,00%	-	-
Têxtil do Marco, SA	a)	Marco de Canaveses	90.37%	90.37%	80.37%	80.37%
Tlantic Portugal - Sistemas de Informação, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Tlantic Sistemas de Informação, Ltda	a)	Porto Alegre (Brazil)	100.00%	100.00%	100.00%	100.00%
Todos os Dias - Com. Ret. Expl. C. Comer., SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%

SONAE INVESTIMENTOS, SGPS, SA

Valor N, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Well W - Electrodomésticos e Equipamentos, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
1) Worten Canarias, S.L.	a)	Tenerife (Spain)	100.00%	100.00%	-	-
Worten - Equipamento para o Lar, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Worten España Distribución, S.L.	a)	Madrid (Spain)	100.00%	100.00%	100.00%	100.00%
Zippy – Comércio e Distribuição, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Zippy - Comércio Y Distribución, SA	a)	Madrid (Spain)	100.00%	100.00%	100.00%	100.00%

a) Control held by majority of voting rights;

b) Control held by management control;
1) Subsidiaries created in the period.
2) Subsidiary disposed on 30 April 2010.

These entities are consolidated using the full consolidation method, considering that they are controlled by Sonae Investimentos SGPS, S.A..

5 JOINTLY CONTROLLED COMPANIES

The jointly controlled companies included in the consolidated financial statements, their head offices and the percentage of share capital held as at 30 September 2010 and 31 December 2009 are as follows:

				Percentage of capital held
		30.September.2010			31.December.2009
COMPANY	Head Office	Direct	Total	Direct	Total
Equador & Mendes - Agência de Viagens e Turismo, Lda	Lisbon	50.00%	37.50%	50.00%	37.50%
Marcas do Mundo - Viagens e Turismo, Sociedade Unipessoal, Lda	Lisbon	50.00%	50.00%	50.00%	50.00%
Movimentos Viagens - Viagens e Turismo, Sociedade Unipessoal, Lda	Lisbon	50.00%	50.00%	50.00%	50.00%
Nova Equador Internacional,Agência de Viagens e Turismo, Lda	Lisbon	50.00%	37.50%	50.00%	37.50%
Puravida - Viagens e Turismo, Lda	Lisbon	50.00%	50.00%	50.00%	50.00%

Nova Equador P.C.O. e Eventos, Sociedade Unipessoal, Lda	Lisbon	50.00%	37.50%	50.00%	37.50%
Raso SGPS, SA	Lisbon	50.00%	50.00%	50.00%	50.00%
Raso - Viagens e Turismo, SA	Lisbon	50.00%	50.00%	50.00%	50.00%
Viajens y Turismo de Geotur España, S.L.	Madrid (Spain)	50.00%	50.00%	50.00%	50.00%

These entities were consolidated using the proportionate consolidation method.

Aggregate amounts, excluding intragroup eliminations, corresponding to the percentage of capital held in these jointly controlled companies included in the financial statements for the period, using the proportionate consolidation method, can be summarized as follows:

	30.September.2010	31.December.2009

Non-current assets	35,438,341	35,087,564
Current assets	32,441,693	30,936,870
Non-current liabilities	3,542,715	3,577,682
Current liabilities	37,556,034	35,666,824

	30.September.2010	30.September.2009
Income	81,186,971	77,351,443
Expenses	81,703,245	78,824,883

6 INVESTMENTS IN ASSOCIATES

Associated companies, their head offices, the percentage of share capital held and their balance as at 30 September 2010 and 31 December 2009 are as follows:

			Percentage of capital held
			30.September.2010		31.December.2009	Book value
COMPANY	Head Office	Direct	Total	Direct	Total	30.September.2010	31.December.2009
Sonaegest - Soc. Gestora de Fundos de Investimento, SA Sempre a Postos - Produtos Alimentares e Utilidades, Lda	Maia Lisbon	40.00% 25.00%	40.00% 25.00%	40.00% 25.00%	40.00% 25.00%	506,375 1,182,358	824,888 1,551,585
					Total	1,688,733	2,376,473

Associated companies were consolidated using the equity method.

The aggregated values of main financial indicators of associated companies can be summarized as follows:

	30.September.2010	31.December.2009
Total Assets	14,918,064	18,725,950
Total Liabilities	8,922,695	10,446,448

	30.September.2010	30.September.2009
Income	32,963,584	52,747,216
Expenses	31,434,030	50,898,651

During the periods ended 30 September 2010 and 2009, movements in investments in associated companies, are made up as follows:

	30.September.2010	30.September.2009
Investments in associated companies
Balance as at 1 January	2,376,473	64,671,483
Change of consolidation method	-	(61,380,677)
Equity method
Effect in net income	435,243	(948,046)
Dividends	(1,122,983)	(261,660)
	1,688,733	2,081,100

The amount disclosed above related with the change of consolidation method corresponds, in 2009, to the acquisition of Fundo de Imobiliário Fechado Imosede. This company consolidates in Sonae Investimentos since the 1st Half of 2009, using the full consolidation method.

7 OTHER NON-CURRENT INVESTMENTS

Other non-current investments, their head offices, proportion of capital held and value of the balance sheet as at 30 September 2010 and 31 December 2009 are as follows:

				Percentage of capital held
			30.September.2010		31.December.2009		Book value
COMPANY	Head Office	Direct	Total	Direct	Total	30.September.2010	31.December.2009
Dispar - Distrib. de Participações, SGPS, SA Lisbon		7.14%	7.14%	7.14%	7.14%	9,976	9,976
Insco - Insular de Hipermerc., SA	Ponta Delgada	10.00%	10.00%	10.00%	10.00%	748,197	748,197
Other investments						5,445	5,693
						763,618	763,866

During the periods ended as at 30 September 2010 and 2009, movements in other non-current investments, are made up as follows:

	30.September.2010	30.September.2009
Investments in other companies
Opening balance as at 1 January	841,053	787,936
Disposals in the period	(36,953)	-
Transfers	-	-
Closing balance as at 30 September	804,100	787,936
Accumulated impairment losses (Note 23)	(40,482)	(13,159)
	763,618	774,777
Financial investments advance:
Opening balance as at 1 January	-	1,584,193
Transfers	-	(1,584,193)
Closing balance as at 30 September	-	-
	763,618	774,777

The value of investments in other companies corresponds mainly to investments in unlisted companies and whose fair value was not estimated because it is not reliably measurable, remain at cost less any impairment losses.

8 CHANGES TO THE CONSOLIDATION PERIMETER

The detail of disposals over the period ended as at 30 September 2010, is as follows:

COMPANY	Head Office	Direct	Total
Retail Properties Difusão Sociedade imobiliária, SA	Maia	100.00%	100.00%

The assets and liabilities of the disposed company as at the disposal date were as follows:

	Date of disposal	31.December.2009
Disposal net assets
Tangible assets (Note 9)	26,237,804	26,438,088
Deferred tax assets	45,191	45,884
Other assets	1,775,423	1,563,968
Cash and cash equivalents	258,238	519
Deferred tax liabilities	(554,498)	(498,241)
Other liabilities	(26,012,429)	(26,129,176)
	1,749,729	1,421,042
Shareholder's loans, other loans and interests	25,166,711
Costs related to the disposal	644,896
Profit / (Loss) in disposal	5,816,838
Disposal price	33,378,174
Effective cash payment received	33,378,174
Cash payment received related to shareholder's loans and interests	375,263
Effective cash payment related to the disposal costs	(644,896)
Cash and cash equivalents disposed	(258,238)
	32,850,302

The retail real estate company referred above owns a building which has remained in use by the group after the company's disposal through an operating lease agreement, with an initial term of 20 years (term extensions are possible).

The impacts of the above disposals in the income statement can be described as follows:

	Date of disposal
Operational income	853,445
Operational costs	(245,749)
Financial net income	(192,870)
Earnings before taxes	414,826
Taxes	(86,139)
Net income	328,687

9 TANGIBLE ASSETS

During the nine months period ended 30 September 2010 and 2009, movements in Tangible assets as well as depreciation and accumulated impairment losses, are made up as follows:

			Tangible assets
				Tangible	Total
	Land and	Plant and		assets	Tangible
	Buildings	Machinery	Others	in progress	Assets
Gross assets:
Opening balance as at 1 January 2010	1,724,171,225	948,112,682	168,570,680	92,462,861	2,933,317,448
Acquisitions	7,658,958	1,296,658	1,219,982	119,709,824	129,885,422
Disposals of subsidiaries (Note 8)	(31,096,814)	(250,482)	-	-	(31,347,296)
Disposals	(35,047,422)	(20,518,040)	(6,686,469)	(1,298,240)	(63,550,171)
Exchange rate effect	28,636	87,612	67,870	-	184,118
Transfers	51,728,156	99,783,524	7,041,842	(160,728,045)	(2,174,523)
Closing balance as at 30 September 2010	1,717,442,739	1,028,511,954	170,213,905	50,146,400	2,966,314,998
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2010	218,182,843	398,544,190	118,096,992	-	734,824,025
Depreciation and impairment losses	21,085,080	65,995,155	14,751,655	-	101,831,890
Disposals of subsidiaries (Note 8)	(5,040,880)	(68,612)	-	-	(5,109,492)
Disposals	(2,536,947)	(15,991,063)	(6,495,957)	-	(25,023,967)
Exchange rate effect	16,588	44,366	26,623	-	87,577
Transfers	-	(580,014)	(460,541)	-	(1,040,555)
Closing balance as at 30 september 2010	231,706,684	447,944,022	125,918,772	-	805,569,478
Carrying amount
As at 30 September 2010	1,485,736,055	580,567,932	44,295,133	50,146,400	2,160,745,520
			Tangible assets
				Tangible	Total
	Land and	Plant and		assets	Tangible
	Buildings	Machinery	Others	in progress	Assets
Gross assets:
Opening balance as at 1 January 2009	1,496,938,520	717,639,990	150,509,335	195,762,509	2,560,850,354
Acquisitions	11,879,572	799,262	2,734,327	207,550,932	222,964,093
Acquisitions of subsidiaries	94,326,259	-	-	51,140,432	145,466,691
Disposals	(2,100)	(8,767,615)	(2,452,312)	(10,995,832)	(22,217,859)
Exchange rate effect	71,977	204,168	149,610	-	425,755
Transfers	29,858,538	166,825,328	13,960,840	(219,146,971)	(8,502,265)
Closing balance as at 30 September 2009	1,633,072,766	876,701,133	164,901,800	224,311,070	2,898,986,769
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2009	192,480,780	340,961,819	103,106,486	-	636,549,085
Depreciation and impairment losses	19,093,371	54,191,459	15,892,249	-	89,177,079
Disposals	(231)	(7,636,101)	(2,184,958)	-	(9,821,290)
Exchange rate effect	39,752	88,518	53,409	-	181,679
Transfers	(92)	(1,521,274)	(1,063,079)	-	(2,584,445)
Closing balance as at 30 September 2009	211,613,580	386,084,421	115,804,107	-	713,502,108
Carrying amount
As at 30 september 2009	1,421,459,186	490,616,712	49,097,693	224,311,070	2,185,484,661

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

		30.September.2010 30.September.2009
Refurbishment and expansion of stores in the retail businesses located in Portugal	30,850,500	123,143,695
Refurbishment and expansion of stores in the retail businesses located in Spain	4,078,245	1,781,796
Construction in progress in Maia (Business Park)	4,451,620	63,739,427
Projects of stores for which advance payments were made	10,323,231	34,387,425
Others	442,804	1,258,726
	50,146,400	224,311,070

10 INTANGIBLE ASSETS

During the nine months period ended 30 September 2010 and 2009, movements in Intangible assets as well as depreciation and accumulated impairment losses, are made up as follows:

	Intangible assets
			Intangible	Total
	Patents and other		assets	Intangible
	similar rights	Others	in progress	Assets
Gross assets
Opening balance as at 1 January 2010	100,024,071	154,435,898	11,463,185	265,923,154
Acquisitions	1,627,085	107,696	5,316,230	7,051,011
Disposals	(426)	(1,118,161)	(2,156)	(1,120,743)
Exchange rate effect	-	15,392	-	15,392
Transfers	(183,008)	3,424,791	(4,927,018)	(1,685,235)
Closing balance as at 30 September 2010	101,467,722	156,865,616	11,850,241	270,183,579
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2010	11,122,066	92,480,785	-	103,602,851
Depreciation and impairment losses	2,716,429	12,437,315	-	15,153,744
Disposals	(426)	(1,024,823)	-	(1,025,249)
Exchange rate effect	-	11,729	-	11,729
Transfers	(48,940)	(27)	-	(48,967)
Closing balance as at 30 de September 2010	13,789,129	103,904,979	-	117,694,108
Carrying amount
As at 30 de September 2010	87,678,593	52,960,637	11,850,241	152,489,471

		Intangible assets
			Intangible	Total
	Patents and other		assets	Intangible
	similar rights	Others	in progress	Assets
Gross assets
Opening balance as at 1 January 2009	93,146,363	141,148,617	20,204,279	254,499,259
Acquisitions	457,584	24,874	10,600,114	11,082,572
Acquisitions of subsidiaries	31,051	998	-	32,049
Disposals	(122,429)	(800,720)	(155,280)	(1,078,429)
Exchange rate effect	-	36,562	-	36,562
Transfers	1,919,969	6,811,697	(10,047,137)	(1,315,471)
Closing balance as at 30 September 2009	95,432,538	147,222,028	20,601,976	263,256,542
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2009	8,010,594	82,199,309	-	90,209,903
Depreciation and impairment losses	2,309,765	10,109,999	-	12,419,764
Acquisitions of subsidiaries	25,062	-	-	25,062
Disposals	(50,444)	(680,691)	-	(731,135)
Exchange rate effect	-	21,900	-	21,900
Transfers	(56,143)	(959)	-	(57,102)
Closing balance as at 30 September 2009	10,238,834	91,649,558	-	101,888,392
Carrying amount
As at 30 September 2009	85,193,704	55,572,470	20,601,976	161,368,150

The value of "Intangible assets in progress" relates mainly to IT projects and software development.

Additionally, this heading also includes the fair value attributed to a group of brands with indefinite useful lives, among which the "Continente" brand, 75,000,000 euro (the same amount as at 2009).

11 GOODWILL

As at 3o September 2010 and 31 December 2009, goodwill is made up as follows:

	30.September.2010	31.December.2009

Food based retail	404,760,044	404,754,156
Specialised retail	84,569,098	84,184,028
Investment management	20,884,949	20,884,949
Retail Real Estate	3,751,392	3,751,392
Others	6,310,513	6,310,513
	520,275,996	519,885,038

During the period ended on 30 September 2010 and 31 December 2009, movements in goodwill, as well as in corresponding impairment losses, were made up as follows:

	30.September.2010	31.December.2009
Gross value:
Opening balance	528,076,621	529,211,677
New companies in the consolidation perimeter	-	2,297,794
Increases	390,958	-
Decreases	-	(3,432,850)
Closing balance	528,467,579	528,076,621
Accumulated impairment
losses:
Opening balance	8,191,583	8,191,583
Increases	-	-
Closing balance	8,191,583	8,191,583
Carrying amount:	520,275,996	519,885,038

12 OTHER INVESTMENTS

As at 30 September 2010 and 2009 movements in this caption can be detailed as follows:

		30.September.2010 30.September.2009
Other investments:
Opening balance as at 1 January	57,294,670	60,956,595
Increases in the period	2,677,225	6,157,762
Decreases in the period	(11,393,095)	(10,780,844)
Closing balance as at 30 September	48,578,800	56,333,513
Accumulated impairment losses	-	-
	48,578,800	56,333,513
Derivative financial instruments
Fair value as at 1 January	365,121	1,849,128
Acquisitions in the period	-	10,184
Disposals in the period	-	(72,494)
Increase/(Decrease) in fair value	(364,954)	(1,776,634)
Fair value as at 30 September	167	10,184
Other Investments	48,578,967	56,343,697

Under the caption "Other investments" is recorded an amount of 33,728,627 euro (45,123,976 euro as of 30 September 2009) related to deposited amounts on an Escrow Account which are applied in investment funds with superior rating and guarantee contractual liabilities assumed by the Group which may arise from the sale of Sonae Distribuição Brasil, S.A. and for which provisions were recorded (Note 23).

Although in accordance with the deadlines contractually established, the Escrow Account should have already been released by the buyer, that didn't happen as there are some points of disagreement on the use of the Escrow Account, namely as to whether or not, to retain the Escrow Account for ongoing fiscal procedures that have not yet been decided. It is the understanding of the Board of Directors, based on legal opinions of Brazilian and Portuguese lawyers, that this amount shall be entirely received up to 31 December 2010, and that there are legal means that may be operated so as to compel the buyer to authorize the return of the Escrow Account. If the negotiations currently under way do not succeed, it is the intention of the Board to make use of such legal means.

13 OTHERNON-CURRENTASSETS

As at 30 September 2010 and 31 December 2009, other non-current assets are detailed as follows:

	30.September.2010	31.December.2009
Trade accounts receivable and other debtors
Bails	4,050,307	2,949,266
Legal deposits (Note 20)	887,023	819,480
Account receivable from Carrefour	11,033,252	-
	15,970,582	3,768,746
Other non-current assets	532,046	567,810
	16,502,628	4,336,556

14 TRADE ACCOUNTS RECEIVABLE AND OTHER CURRENTASSETS

As at 30 September 2010 and 31 December 2009, "Trade accounts receivable and other current assets" are made up as follows:

	30.September.2010	31.December.2009

Trade accounts receivable	44,343,406	44,872,052
Taxes recoverable	21,013,079	28,379,704
Granted loans to related companies	7,975	1,008,193
Other debtors
Trade suppliers - debtor balances	78,867,597	70,708,453
Credit sales sold to third parties	1,378,264	1,275,849
Special regime for settlement of tax and social security debts	12,382,502	13,999,945
VAT recoverable on real estate assets	6,409,828	17,696,916
Accounts receivable from the disposal of tangible fixed assets	1,019,799	4,957,938
Advances on suppliers	10,200,000	14,642,280
Other debtors	14,061,974	21,044,317
	124,319,964	144,325,698
Other current assets
Commercial Discounts	29,331,649	13,001,652
Interests to be received	1,682,064	1,674,227
Commissions to be received	1,446,411	1,640,164
Rents	5,164,539	3,916,650
Condominiums management fee's	1,787,525	1,702,948
Insurance premiums paid in advance	6,529,528	3,054,380
Other current assets	10,206,083	7,548,121
	56,147,799	32,538,142
Accumulated impairment losses (Note 23)	(23,951,849)	(25,029,183)
	221,880,374	226,094,606

15 DEFERREDTAX

Deferred tax assets and liabilities as at 30 September 2010 and 31 December 2009 are as follows, taking into consideration its temporary differences:

		Deferred tax assets	Deferred tax liabilities
	30.September.2010	31.December.2009	30.September.2010	31.December.2009
Difference between fair value and acquisition cost	3,563,999	3,450,247	30,080,214	29,131,447
Harmonisation adjustments	111,240	29,142	54,201,778	47,638,444
Provisions and impairment losses not accepted for tax purposes	6,100,014	5,308,282	25,000	-
Write-off of tangible and intangible assets	6,666,854	7,811,377	-	-
Write-off of deferred costs	-	-	12,574	21,922
Valuation of hedging derivatives	1,940,355	1,622,203	36,044	96,757
Amortisation of Goodwill for tax purposes	-	-	19,195,044	13,960,032
Non taxed exchange differences	-	-	-	928,553
Revaluation of tangible assets	-	-	2,006,110	2,129,663
Tax losses carried forward	83,898,056	72,114,888	-	-
Reinvested capital gains/(losses)	-	-	1,387,499	2,102,270
Others	2,925,183	134,898	2,864	735,330
	105,205,701	90,471,037	106,947,127	96,744,418

As at 30 September 2010, and 31 December 2009, and in accordance with tax statements presented by companies that recorded deferred tax assets arising from tax losses carried forward and using exchange rates effective at that time, tax losses carried forward can be summarized as follows:

	30.September.2010			31.December.2009
	Tax losses carried forward	Deferred tax assets	Time limit	Tax losses carried forward	Deferred tax assets	Time limit
With limited time use
Generated in 2004	311,930	77,983	2010	159,844	39,961	2010
Generated in 2005	297,248	74,312	2011	509,857	127,464	2011
Generated in 2006	-	-	2012	-	-	2012
Generated in 2007	125,017	31,254	2013	15,270,805	3,817,701	2013
Generated in 2008	3,541,103	885,276	2014	3,571,591	892,898	2014
Generated in 2009	9,817,425	2,454,356	2015	10,454,096	2,613,524	2015
Generated in 2010	4,034,544	1,008,638	2014	-	-
	18,127,267	4,531,819		29,966,194	7,491,549
Without limited time use	-	-		940,305	319,704
With a time limit different from the above mentioned	264,554,121	79,366,237		214,345,452	64,303,636
	264,554,121	79,366,237		215,285,757	64,623,339
	282,681,388	83,898,056		245,251,950	72,114,888

As at 30 September 2010 and 31 December 2009, deferred tax assets resulting from tax losses were assessed and only recognized to the extent it was probable that sufficient taxable profits will be available in the future against which the deferred tax assets can be used, or when taxable temporary differences are recognized by the same entity and expected to reverse in the same period. This assessment was based on business plans of Sonae Investimentos companies, which are periodically reviewed and updated, and on identified and available tax planning opportunities.

As at 30 September 2010 tax losses carried forward, have not originated deferred tax assets for prudential reasons. These may be summarized as follows:

	30.September.2010			31.December.2009
	Tax losses carried forward	Deferred tax credit	Time limit	Tax losses carried forward	Deferred tax credit	Time limit
With limited time use
Generated in 2004	292,987	73,247	2010	292,987	73,247	2010
Generated in 2005	22,523	5,631	2011	22,523	5,631	2011
Generated in 2006	337,684	84,420	2012	337,684	84,420	2012
Generated in 2007	819,543	204,886	2013	819,543	204,886	2013
Generated in 2008	5,191,322	1,297,831	2014	5,191,322	1,297,831	2014
Generated in 2009	3,393,263	848,316	2015	3,391,900	847,975	2015
Generated in 2010	2,078,352	519,588	2014	-	-
	12,135,674	3,033,919		10,055,959	2,513,990
Without limited time use	10,553,141	3,588,068		5,871,991	1,996,477
With a time limit different from the above mentioned	14,128,789	3,547,120		14,975,938	3,756,324
	36,817,604	10,169,107		30,903,888	8,266,791

16 CASHANDCASHEQUIVALENTS

As at 30 September 2010 and 31 December 2009 cash and cash equivalents can be detailed as follows:

	30.September.2010	31.December.2009

Cash at hand	6,248,208	6,120,299
Bank deposits	54,446,192	105,275,640
Treasury applications	12,056	11,128
Cash and cash equivalents on the balance sheet	60,706,456	111,407,067
Bank overdrafts (Note 18)	(14,990,279)	(23,065,285)
Cash and cash equivalents on the statement of cash flows	45,716,177	88,341,782

Bank overdrafts, are recorded in the balance sheet under the caption Current bank loans.

17 SHARE CAPITAL

As at 30 September 2010, the share capital, which is fully subscribed and paid for, is made up by 1,000,000,000 ordinary shares which do not hold right to any fixed income, with a nominal value of 1 Euro each.

As at 30 September 2010, the subscribed share capital was held as follows:

Entity	%
Sonae, SGPS, S.A.	82.48%
Sonae Investments, BV	17.52%

As at 30 September 2010, Efanor Investimentos S.G.P.S., S.A. and its subsidiaries held 52.98% of the share capital of Sonae, SGPS, S.A..

18 LOANS

As at 30 September 2010 and 31 December 2009, loans are made up as follows:

	30.September.2010		31.December.2009
		Outstanding amount			Outstanding amount
	Amount limit	Current	Non-Current	Amount limit	Current	Non-Current
Bank loans
Sonae Investimentos, SGPS, SA - commercial paper	682,500,000	-	445,000,000	692,500,000	-	271,000,000
Continente Hipermercados, SA - commercial paper	-	-	-	30,000,000	-	-
Others		3,333,334	11,666,666		3,333,333	15,000,000
		3,333,334	456,666,666		3,333,333	286,000,000
Bank overdrafts (Note 16)		14,990,279	-		23,065,285	-
Up-front fees beard with the issuance of loans		(7,667)	(76,035)		(7,667)	(105,107)
Bank loans		18,315,946	456,590,631		26,390,951	285,894,893
Bonds
Bonds Modelo Continente / 2003		-	82,000,000		-	82,000,000
Bonds Modelo Continente / 2005/2010		-	-		64,925,000	-
Bonds Modelo Continente / 2005/2012		-	150,000,000		-	150,000,000
Bonds Modelo Continente / 2007/2012		-	200,000,000		-	200,000,000
Bonds Sonae Distribuição / 2007/2015		-	200,000,000		-	200,000,000
Bonds Sonae Distribuição / 2007/2015		-	310,000,000		-	310,000,000
Bonds Sonae Distribuição / 2009/2014		-	50,000,000		-	50,000,000
Up-front fees beard with the issuance of loans		-	(3,460,147)		(25,511)	(4,516,975)
Bonds		-	988,539,853		64,899,489	987,483,025
Other loans		36,229	168,862		33,466	198,853
Derivative instruments (Note 19)		7,935,208	-		7,902,322	-
Other loans		7,971,437	168,862		7,935,788	198,853
Obligations under finance leases		2,774,699	7,618,177		4,704,670	8,620,393
		29,062,082	1,452,917,523		103,930,898	1,282,197,164

The interest rate at 30 September 2010 of bonds and loans was approximately 1,69% (1,65% on 31 December 2009). It is estimated that the fair value of these loans does not differ significantly from its market value.

The derivative instruments are recorded at fair value (Note 19).

The repayment schedule of the nominal value of borrowings (including bank loans and obligations under finance leases) is summarized as follows:

	30.September.2010 31.December.2009

N+1 a)	21,134,541	96,061,754
N+2	461,583,318	95,469,679
N+3	195,066,190	370,883,410
N+4	439,094,033	205,263,112
N+5	357,441,071	255,078,237
After N+5	3,269,093	360,124,809
	1,477,588,246	1,382,881,001

a) Includes the amounts used of the commercial paper programs.

The maturities above were estimated in accordance with the contractual terms of loans and contracts, which do not include financial covenants.

19 DERIVATIVES

Exchange rate derivatives

In what concerns financial risk management policy, Sonae Investimentos uses exchange rate derivatives, essentially to hedge future cash flows.

As at 30 September 2010, the fair value of the exchange rate derivatives, calculated taking into consideration the present market value of equivalent financial instruments, is estimated as follows:

	30.September.2010	31.December.2009

Assets (Note 12)	167	365,121
Liabilities (Note 18)	(3,822,904)	(79,039)
	(3,822,737)	286,082

Gains or losses for the period arising from changes in the fair value of derivative financial instruments amounted (1,652,817) Euro (365,678 Euro at 30 September 2009) and were recorded directly in the income statement in the caption "Other expenses".

Interest rate derivatives

As at 30 September 2010, the financial instruments of interest rate used by the Group, essentially refer to "swaps" and zero cost collars in the case of liabilities. In accordance with the accounting policies adopted, these derivatives satisfy the requirements to be designated as hedging instruments of interest rate risk.

Its fair value amounts to:

	30.September.2010	31.December.2009
Assets (Note 12)	-	-
Liabilities (Note 18)	(4,112,304)	(7,823,283)
	(4,112,304)	(7,823,283)

These interest rate derivatives are valued at fair value, at the balance sheet date, based on valuations performed by Sonae Investimentos using specific software and on external valuations when this software does not deal with specific instruments. The fair value of swaps was calculated, at the balance sheet date, based on the discounted cash flow of the difference between the fixed interest rate of the fixed leg and the indexed variable interest rate inherent to the variable leg.

Fair value of derivatives

The fair value of the derivatives is detailed as follows:

	Assets		Liabilities
	30.September.2010	31.December.2009	30.September.2010	31.December.2009
Derivatives not qualified as hedging
Exchange rate	167	365,121	1,366,901	79,039
Interest rate	-	-	-	-
Hedging derivatives
Exchange rate	-	-	2,456,003	-
Interest rate	-	-	4,112,304	7,823,283
Interest and exchange rate	-	-	-	-
Other derivatives	-	-	-	-
	167	365,121	7,935,208	7,902,322

20 OTHERNON-CURRENT LIABILITIES

As at 30 September 2010 and 31 December 2009, the caption "Other non-current liabilities" was made up as follows:

	30.September.2010	31.December.2009
Shareholder loans	18,898,398	10,931,827
Tangible assets suppliers	1,250,000	1,287,500
Share based payments (Note 21)	2,696,216	2,069,462
Other non-current liabilities	929,493	858,717
Accruals and deferrals	957,203	1,075,422
Other non-current liabilities	24,731,310	16,222,928

As at 30 September 2010 and 31 December 2009, the caption "Other liabilities" refers mainly to the estimated amounts to fulfill the legal and tax obligations of a brazilian subsidiary which is considered appropriate to face future losses on lawsuits and for which legal deposits exist, which are recorded under the caption "Other non-current assets" (Note 13), with no defined maturity.

The amount payable related with Shareholder loans refers to a loan granted by a minority shareholder to a subsidiary which bears interests at market rates. The fair value of this loan is similar to its book value, with no defined maturity.

21 SHARE BASEDPAYMENT PLANS

In 2010 and in previous years, Sonae Investimentos Group granted deferred performance bonuses to its directors and eligible employees. These are based on shares to be acquired at nil cost, three years after they were attributed to the employee. The purchase can be exercised during the period between the third anniversary of the grant date and the end of that year. The company has the choice to settle its responsibilities in cash instead of shares. The option can only be exercised if the employee still works for Sonae Group on the vesting date.

Liabilities arising from deferred performance bonuses as at 30 September 2010 and 31 December 2009 are made up as follows:

	Grant	Vesting	Number of		Fair value
	year	year	participants	30.September.2010 31.December.2009
Shares
	2007	2010	40	-	891,596
	2008	2011	43	2,485,344	1,468,048
	2009	2012	43	3,836,024	3,272,289
	2010	2013	46	1,760,135	-
Total				8,081,503	5,631,933

As at 30 September 2010 and 31 December 2009 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 has not yet vested:

	30.September.2010 31.December.2009
Staff costs	2,055,131	2,666,299
Recorded in previous years	2,036,932	294,759
	4,092,063	2,961,058
Other non-current liabilities (Note 20)	2,696,216	2,069,462
Other current liabilities (Note 22)	1,395,847	891,596
	4,092,063	2,961,058

The share based payment plan costs are recognized during the years between the grant and vesting date as staff costs.

22 TRADE CREDITORS AND OTHER CURRENT LIABILITIES

As at 30 September 2010 and 31 December 2009 the caption "Trade creditors and other current liabilities" can be detailed as follows:

	30.September.2010	31.December.2009

Trade creditors	913,118,837	1,062,040,575
Taxes payable	40,659,804	65,634,240
Other creditors
Tangible asset suppliers	36,410,470	76,905,111
Related undertakings	872,068	100
Other debts	47,378,930	56,253,410
	84,661,468	133,158,621
Other current liabilities
Staff costs	101,767,235	86,486,304
Interest payable	4,398,967	6,631,919
Marketing expenses	8,400,224	7,543,181
Other external supplies and services	35,099,599	27,026,280
Accrued income - rents	8,550,986	4,670,177
Real Estate Municipality tax	3,408,929	3,889,818
Share based payments (Note 21)	1,395,847	891,596
Others	3,131,576	7,396,212
	166,153,363	144,535,487
	1,204,593,472	1,405,368,923

The caption "Other debts" includes

22,203,294 Euro (17,236,223 Euro as at 31 December 2009), of attributed discounts not yet used related with loyalty projects, referring to "Cartão Cliente" card;
6,599,104 Euro (10,483,469 Euro as at 31 December 2009) related to means of payments owned by clients as vouchers, gift cards and discount tickets.

23 PROVISIONSANDACCUMULATEDIMPAIRMENT LOSSES

Movements in "Provisions and impairment losses", for the nine months period ended as at 30 September 2010 and 31 December 2009, were as follows:

Caption	Balance as at 31 December 2009	Increase	Decrease	Balance as at 30 September 2010
Accumulated impairment losses on investments (Note 7)	77,185	-	(36,703)	40,482
Accumulated impairment losses on trade accounts receivable (Note 14)	8,540,926	1,101,353	(3,471,617)	6,170,662
Accumulated impairment losses on other debtors (Note 14)	16,488,257	3,018,347	(1,725,417)	17,781,187
Accumulated impairment losses on inventories	18,954,690	5,192,753	(3,705,195)	20,442,248
Non-current provisions	9,263,092	4,648,668	(60,825)	13,850,935
Current provisions	2,488,883	200,000	(779,093)	1,909,790
	55,813,033	14,161,121	(9,778,850)	60,195,304

Caption	Balance as at 31 December 2008	Increase	Decrease	Balance as at 30 September 2009

Accumulated impairment losses on investments	13,159	-	-	13,159
Accumulated impairment losses on trade accounts receivable	12,717,269	692,882	(292,139)	13,118,012
Accumulated impairment losses on other debtors	12,140,408	3,034,263	(279,462)	14,895,209
Accumulated impairment losses on inventories	18,510,507	5,464,858	(4,098,901)	19,876,464
Non-current provisions	12,953,754	1,148,278	(2,596,827)	11,505,205
Current provisions	2,314,563	-	(645,675)	1,668,888
	58,649,660	10,340,281	(7,913,004)	61,076,937

The caption "Non-current provisions" includes 5,896,946 Euro (5,447,923 Euro as at 31 December 2009) relating to contingencies assumed by the company, on the sale of the subsidiary Sonae Distribuição Brasil, S.A. in 2005. This provision is being used as costs are being incurred.

24 CONTIGENTASSETSANDLIABILITIES

As at 30 September 2010 and 31 December 2009, the major Contingent liabilities were guarantees given, which can be detailed as follows:

	30.September.2010	31.December.2009
Guarantees given:
on tax claims	244,834,908	251,357,651
on municipal claims	7,500,105	8,998,481
guarantees provided by Sonae SGPS	66,536,193	-
Others	29,565,384	27,298,016

Includes guarantees amounting to 200,978,807 Euro (133,891,206 Euro as at 31 December 2009) and 105,400,907 Euro (111,279,306 Euro as at 31 December 2009) related to appeals against additional corporate Income Tax and VAT assessments, respectively.
Guarantees given to the taxation authorities for the purpose of suspension of tax claims.

During the period ended 31 December 2009, one of the subsidiaries of the Food based Retail segment has granted a guarantee in favour of the Portuguese Tax Administration, associated with a tax claim for VAT of 2004, amounting to EUR 30,260,721.33, for which the Company has presented an impugnation.

Additionally, Sonae Investimentos SGPS, SA has granted a guarantee on behalf of the subsidiary referred to above, amounting 46,893,361.33 euro in order to ensure an additional payment of VAT, related to the year of 2005. Sonae will present an appeal and believes, based on the opinion of its tax advisers, that the sentence will be favorable to the group.

A Retail segment company in Brazil granted a guarantee of approximately 31,929,437 Euro (74,078,784 Brazilian real), on a tax claim, which is being judged by a tax court (72,755,267 Brazilian real as at 31 December 2009).

As a consequence of the sale of a subsidiary company in Brazil, Sonae guaranteed the buyer all the losses incurred by that company arising on unfavorable decisions not open for appeal, concerning tax lawsuits on transactions that took place before the sale date (13 December 2005) and that exceed 40 million euro. As at 30 September 2010, the amount claimed by the Brazilian Tax Authorities concerning the tax lawsuits still in progress, which the company's lawyers assess as having a high probability of loss, amounts to near 40 million euro, including processes paid under recovery program Brazilian State taxes ("REFIS") in the amount of 23 million euro .

Furthermore, there are other tax lawsuits which total 45 million euro (42 million euro as at 31 December 2009) for which the Board of Directors, based on the lawyers' assessment, understands will not imply future losses to the old subsidiary.

No provision has been recorded in order to face up to possible risks arising from these contingencies, as the Board of Directors believes that they will be solved without arising additional liabilities to the Group.

25 RELATEDPARTIES

Balances and transactions with related parties are detailed as follows:

	Sales and services rendered			Purchases and services obtained
Transactions	30.September.2010	30.September.2009	30.September.2010	30.September.2009

Parent company	859,515	327,160	79,689	950,677
Jointly controlled companies	568,340	607,699	2,093,005	1,596,876
Associated companies	25,966,278	23,776,119	729,528	337,016
Participated companies	43,660,354	37,939,110	-	-
Other related parties (1)	8,278,591	6,364,742	65,058,796	65,529,946
	79,333,078	69,014,830	67,961,018	68,414,515

		Interest income		Interest expenses
Transactions	30.September.2010	30.September.2009	30.September.2010	30.September.2009
Parent company	9,769	-	522,223	187,332
Jointly controlled companies	15	108,336	16	6,525
Associated companies	-	-	-	-
Participated companies	-	-	-	-
Other related parties (1)	9,396	2,874	468,439	240,434
	19,180	111,210	990,678	434,291

		Accounts receivable	Accounts payable
Balances	30.September.2010	31.December.2009	30.September.2010	31.December.2009
Parent company	818,437	535,294	249,975	1,688,040
Jointly controlled companies	596,431	125,975	342,221	202,093
Associated companies	4,856,783	1,446,962	74,505	87,091
Participated companies	12,756,463	14,169,568	13,790	40,932
Other related parties (1)	8,950,754	10,493,463	41,550,435	32,646,869
	27,978,868	26,771,262	42,230,926	34,665,025

	Loans
		Obtained	Granted
Balances	30.September.2010	31.December.2009	30.September.2010	31.December.2009

Parent company	-	-	-	-
Jointly controlled companies	-	-	-	-
Associated companies	-	-	-	-
Participated companies	-	-	-	-
Other related parties (1)	19,770,398	10,802,648	-	1,000,000
	19,770,398	10,802,648	-	1,000,000

1) Other related parties are considered to be related party affiliates or companies under joint control of Efanor SGPS, SA that are not included in Sonae Investimentos, including companies belonging to the Sonae Group, Sonae Indústria and Sonae Capital.

The recorded amounts as Obtained Loans from participating companies refer to loans granted to subsidiaries by its shareholders, which bear interests at market rates.

26 INCOME TAX

Income tax for the nine months period ended on 30 September 2010 and 2009 is detailed as follows:

	30.September.2010	30.September.2009

Current tax	24,667,439	12,658,586
Deferred tax	(4,708,799)	(5,485,401)
	19,958,640	7,173,185

27 EARNINGS PER SHARE

Earnings per share for the nine months period ended on 30 September 2010 and 2009 were calculated taking into consideration the following amounts:

30.September.2010	30.September.2009

91,605,489	65,601,725
- -	- -
91,605,489	65,601,725

1,000,000,000	1,000,000,000
-	-
1,000,000,000	1,000,000,000
0.091605	0.065602

On 30 September 2010 and 2009 there is no dilutive effect on the number of shares outstanding.

28 DIVIDENDS

In the Shareholders Annual General Meeting held on 26 April 2010, the payment of a gross dividend of 0.07 euro per share (0.085 euro per share in 2009) corresponding to a total of 70,000,000 euro (85,000,000 at 2009) was approved.

29 SEGMENT INFORMATION

The contribution of the main segments for the nine months period ended on 30 September 2010 and 2009 can be detailed as follows:

	Food based Retail	Specialised Retail	Investment Management	Retail Real Estate	Eliminations and adjustments	Total
30 September 2010
Turnover	2,449,257,148	869,761,764	129,989,165	95,228,485	(89,061,688)	3,455,174,874
Ex-Fuel	2,374,671,087	869,761,764	129,989,165	95,228,485	(89,061,688)	3,380,588,813
Fuel	74,586,061	-	-	-	-	74,586,061
EBITDA	149,034,592	16,238,480	2,173,623	97,047,664	(387,097)	264,107,262
EBIT	89,901,154	(15,983,043)	(843,319)	72,998,732	(354,328)	145,719,196
Invested capital	529,977,628	393,134,586	75,159,045	1,460,740,058	1,411,827	2,460,423,144
Sales area [000 m2 ]	533	335	63	-	-	931

	Food based Retail	Specialised Retail	Investment Management	Retail Real Estate	Eliminations and adjustments	Total
30 September 2009
Turnover	2,336,478,416	756,305,029	130,420,869	91,026,112	(85,771,946)	3,228,458,480
Ex-Fuel	2,238,061,503	756,305,029	130,420,869	91,026,112	(85,771,946)	3,130,041,567
Fuel	98,416,913	-	-	-	-	98,416,913
EBITDA	119,933,643	10,796,060	(377,999)	84,852,017	-	215,203,721
EBIT	64,983,469	(14,911,061)	(3,715,805)	65,113,244	-	111,469,847
Invested capital	567,528,369	328,556,666	75,375,386	1,541,824,026	-	2,513,284,447

Food based retail

Includes the contribution of Group's activity related with the insignias of food based retail (Continente, Modelo, Bom Bocado, Área Saúde and Book.it) and fuels (which is operated under the brand Continente).

Specialized Retail

Includes the contribution of Group activity related with the insignia of non-food retail (Worten, Worten Mobile, Worten Gamer, Vobis, Sport Zone, Loop, Modalfa and Zippy).

Investment Management

Includes the Group's activity associated with Maxmat and travel agencies.

Retail Real Estate

Includes real estate assets owned and managed by Sonae Investimentos, namely commercial galleries associated to units Continente and Modelo.

Elimination and adjustments

Include consolidation adjustments and eliminations of intra-group balances and contribution from other companies not included in the previous segments. These values refer, mainly, to the elimination of rents invoiced by the Real Estate Segment to other Segments, presented in the turnover caption.

Operational Cash-flow (EBITDA)

Turnover + Investment income+ Other income – Negative Goodwill – Reversal of impairment losses – Operational costs

Capital employed

Gross real estate assets + other fixed assets (including Goodwill) - amortisations and impairment losses + financial investments + working capital.

30 APPROVAL OF THE FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved by the Board of Directors and authorized for issue on 15 November 2010.

Matosinhos, 15 November 2010

The Board of Directors,

______________________________________ Duarte Paulo Teixeira de Azevedo

______________________________________ Ângelo Gabriel Ribeirinho dos Santos Paupério

______________________________________ Nuno Manuel Moniz Trigoso Jordão

Condensed individual financial statements

CONDENSED INDIVIDUAL BALANCE SHEETS AS AT 30 SEPTEMBER 2010 AND 2009 AND AS AT 31 DECEMBER 2009

(Translation of condensed individual financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)

ASSETS	Notes	30.September.2010	30.September.2009	31.December.2009
NON-CURRENT ASSETS:
Tangible assets		1,733	3,345	2,786
Intangible assets		6,410	7,711	7,160
Investments	4	2,722,681,845	2,348,820,104	2,349,634,766
Deferred tax assets	5	920,611	1,808,090	1,736,158
Other non-current assets	6	1,325,412,665	1,102,955,633	1,000,150,633
Total Non-Current Assets		4,049,023,264	3,453,594,883	3,351,531,503
CURRENT ASSETS:
Trade accounts receivable and other current assets	7	282,765,859	406,248,181	322,687,037
Cash and cash equivalents	8	94,858	173,125	51,973,423
Total Current Assets		282,860,717	406,421,306	374,660,460

TOTAL ASSETS		4,331,883,981	3,860,016,189	3,726,191,963
EQUITY AND LIABILITIES
EQUITY:
Share capital		1,000,000,000	1,000,000,000	1,000,000,000
Reserves and retained earnings		934,431,619	940,211,753	940,785,421
Profit for the period		367,141,131	5,783,506	61,758,365
TOTAL EQUITY		2,301,572,750	1,945,995,259	2,002,543,786
LIABILITIES:
NON-CURRENT LIABILITIES:
Loans	1 0	1,445,130,484	1,469,015,099	1,273,377,918
Deferred tax liabilities	5	1,403	1,412	1,379
Total Non-Current Liabilities		1,445,131,887	1,469,016,511	1,273,379,297
CURRENT LIABILITIES:
Loans	1 0	9,161,208	80,038,250	68,686,914
Trade creditors and other current liabilities	1 1	576,018,136	364,966,169	381,581,966
Total Current Liabilities		585,179,344	445,004,419	450,268,880

TOTAL EQUITY AND LIABILITIES		4,331,883,981	3,860,016,189	3,726,191,963

(Amounts expressed in euro)

The accompanying notes are part of these condensed individual financial statements.

CONDENSED INDIVIDUAL INCOME STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Translation of condensed individual financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)

(Amounts expressed in euro)

	Notes	3 th Quarter 2010	3 th Quarter 2009		30.September.2010 30.September.2009
Services rendered		437,860	452,714	1,245,047	1,244,511
Gains or losses on investments	1 4	-	261,661	372,280,793	1,312,520
Financial income	1 5	9,117,470	16,342,871	25,046,143	57,213,236
Other income		4,911	3,481	1,007,319	1,640,497
External supplies and services		(230,911)	(146,556)	(549,416)	(1,006,651)
Staff costs		(178,333)	(378,980)	(464,892)	(966,130)
Depreciation and amortisation		(827)	(1,099)	(2,711)	(3,358)
Financial expenses	1 5	(11,519,437)	(12,418,312)	(32,211,811)	(49,189,137)
Other expenses		(118,410)	(148,511)	(1,807,689)	(1,875,542)
Profit/(Loss) before taxation		(2,487,677)	3,967,269	364,542,783	8,369,946
Taxation		1,250,352	(1,105,829)	2,598,348	(2,586,440)
Profit/(Loss) after taxation	1 6	(1,237,325)	2,861,440	367,141,131	5,783,506
Earnings per share		(0.0012)	0.0029	0.3671	0.0058

The accompanying notes are part of these condensed individual financial statements.

CONDENSED INDIVIDUAL STATEMENTS OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED AT 30 SEPTEMBER 2010 AND 2009

(Translation of the individual financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)

(Amounts expressed in euro)

	Notes	3 th Quarter 2010	3 th Quarter 2009		30.September.2010 30.September.2009
Net Profit / (Loss) for the period	1 6	(1,237,325)	2,861,440	367,141,131	5,783,506
Changes in hedge and fair value reserves		848,635	2,612,049	1,887,833	(1,698,551)
Total comprehensive income for the period		(388,690)	5,473,489	369,028,964	4,084,955

The accompanying notes are part of these condensed individual financial statements.

CONDENSED INDIVIDUAL STATEMENTS OF CHANGES IN EQUITY FOR THE PERIODS ENDED AT 30 SEPTEMBER 2010 AND 2009

(Translation of condensed financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)

(Amounts expressed in euro)

Reserves and Retained Earnings

		Reserves and Retained Earnings
	Share Capital	Legal Reserve	Hedging Res erve	Other Reserves and Retained Earnings	Total Reserves and Retained Earnings	Net Profit/(Loss)	Total
Balance as at 1 January 2009	1,000,000,000	99,300,000	(3,316,342)	664,814,565	760,798,223	266,112,081	2,026,910,304
Total comprehensive income for the period	-	-	(1,698,551)	-	(1,698,551)	5,783,506	4,084,955
Appropriation of profit of 2008: Transfer to legal reserves and retained earnings Dividends distributed	- -	14,700,000 -	- -	251,412,081 (85,000,000)	266,112,081 (85,000,000)	(266,112,081) -	- (85,000,000)
Balance as at 30 September 2009	1,000,000,000	114,000,000	(5,014,893)	831,226,646	940,211,753	5,783,506	1,945,995,259
Balance as at 1 January 2010	1,000,000,000	114,000,000	(4,441,225)	831,226,646	940,785,421	61,758,365	2,002,543,786
Total comprehensive income for the period	-	-	1,887,833	-	1,887,833	367,141,131	369,028,964
Appropriation of profit of 2009: Transfer to legal reserves and retained earnings Dividends distributed	- -	3,087,918 -	- -	58,670,447 (70,000,000)	61,758,365 (70,000,000)	(61,758,365) -	- (70,000,000)
Balance as at 30 September 2010	1,000,000,000	117,087,918	(2,553,392)	819,897,093	934,431,619	367,141,131	2,301,572,750

The accompanying notes are part of these condensed individual financial statements.

CONDENSED INDIVIDUAL CASH FLOW STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Translation of the condensed financial statements originally issued in Portuguese. In case of discrepancy the Portuguese version prevails)

(Amounts expressed in euro)

OPERATING ACTIVITIES Net cash flow from operating activities (1) 5,471,780 6,099,275 (13,971,112) 13,594,885 INVESTMENT ACTIVITIES Cash receipts arising from: Investments - 11,000 1,147,994,417 11,000 Tangible and intangible assets 160,389 - 160,399 - Interests and similar income 243,658 298,341 46,241,460 54,754,683 Dividends - 871,661 10,447,148 1,312,520 Loans granted 330,445,368 575,061,830 1,207,955,152 1,704,836,242 330,849,415 576,242,832 2,412,798,576 1,760,914,445 Cash payments arising from: Investments (497,850) (3,050,000) (1,128,802,850) (20,222,063) Tangible and intangible assets - (257) (366) (257) Loans granted (272,596,000) (541,785,672) (1,540,265,296) (1,617,111,292) (273,093,850) (544,835,929) (2,669,068,512) (1,637,333,612) Net cash used in investment activities (2) 57,755,565 31,406,903 (256,269,936) 123,580,833 FINANCING ACTIVITIES Cash receipts arising from: Loans obtained 1,791,322,000 3,317,905,328 5,940,061,131 9,650,041,361 1,791,322,000 3,317,905,328 5,940,061,131 9,650,041,361 Cash payments arising from: Loans obtained (1,843,257,667) (3,352,746,995) (5,627,586,077) (9,701,285,718) Interests and similar charges (12,720,234) (16,660,980) (29,486,353) (62,532,436) Dividends - - (70,000,000) (85,000,000) (1,855,977,901) (3,369,407,975) (5,727,072,430) (9,848,818,154) Net cash used in financing activities (3) (64,655,901) (51,502,647) 212,988,701 (198,776,793) Net increase in cash and cash equivalents (4) = (1) + (2) + (3) (1,428,556) (13,996,469) (57,252,347) (61,601,075) Cash and cash equivalents at the beginning of the period (4,312,128) 2,345,565 51,511,663 49,950,171 Cash and cash equivalents at the end of the period 8 (5,740,684) (11,650,904) (5,740,684) (11,650,904)	Notes	3 th Quarter 2010	3 th Quarter 2009	30.September.2010 30.September.2009

The accompanying notes are part of these condensed individual financial statements.

NOTES TO THE CONDENSED INDIVIDUAL FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2010

(Translation of the condensed individual financial statements originally issued in Portuguese. In case of discrepancies the Portuguese version prevails)

(Amounts expressed in euro)

1 INTRODUCTION

SONAE Investimentos, SGPS, SA, "the Company" or "Sonae Investimentos", is a Portuguese corporation, whose head office is in Rua João Mendonça nº 529, 4464-501 Senhora da Hora, Matosinhos, Portugal.

Its main activity is the management of investments (Note 4).

2 BASIS OF PREPARATION

The interim condensed Financial Statements are presented quarterly, in accordance with IAS 34 – "Interim Financial Reporting".

3 PRINCIPAL ACCOUNTING POLICIES

The accounting policies adopted are consistent with those followed in the preparation of the annual financial statements for the year ended 31 December 2009.

4 INVESTMENTS

As at 30 September 2010 and 31 December 2009, the detail of investments is as follows:

		30.September.2010		31.December.2009
Company	% held	Final balance	% held	Final balance
Azulino - Imobiliária, SA	100.00%	498,025	100.00%	498,025
Bertimóvel - Sociedade Imobiliária, SA	100.00%	1,845,000	100.00%	1,845,000
Canasta - Empreendimentos Imobiliários, SA	100.00%	1,669,375	100.00%	1,669,375
Chão Verde - Sociedade de Gestão Imobiliária, SA	100.00%	2,244,591	100.00%	2,244,591
Citorres - Sociedade Imobiliária, SA	100.00%	477,848	100.00%	477,848
Contibomba - Comércio e Distribuição de Combustíveis, SA	100.00%	452,000	100.00%	452,000
Contimobe - Imobiliária Castelo Paiva, SA	100.00%	231,318,722	100.00%	231,318,722
Cumulativa - Sociedade Imobiliária, SA	100.00%	2,315,191	100.00%	2,285,191
Difusão - Sociedade Imobiliária, SA	-	-	100.00%	50,000
Edições Book.it - SA	-	-	100.00%	1,000,000
Farmácia Selecção, SA	89.00%	89,000	89.00%	89,000
Fozimo - Sociedade Imobiliária, SA	100.00%	24,940	100.00%	24,940
Fozmassimo - Sociedade Imobiliária, SA	100.00%	6,264,902	100.00%	6,264,902
Fundo de Investimento Imobiliário Fechado Imosede	54.55%	64,415,021	54.55%	64,415,021
Fundo de Investimento Imobiliário Imosonae Dois	100.00%	158,410,389	100.00%	158,410,389
Igimo - Sociedade Imobiliária, SA	100.00%	220,000	100.00%	220,000
Iginha - Sociedade imobiliária, SA	100.00%	1,259,000	100.00%	959,000
Imoconti - Sociedade Imobiliária, SA	100.00%	380,000	100.00%	380,000
Imoestrutura - Sociedade Imobiliária,SA	100.00%	24,940	100.00%	24,940
Imomuro - Sociedade Imobiliária, SA	100.00%	799,940	100.00%	799,940

Imoresultado - Sociedade Imobiliária, SA	100.00%	109,736	100.00%	109,736
Imosistema - Sociedade Imobiliária, SA	100.00%	280,000	100.00%	280,000
Marcas MC, ZRT	100.00%	72,784,761	100.00%	72,784,761
MJLF - Empreendimetos Imobiliários, SA	100.00%	1,809,397	100.00%	1,809,397
Modelo Continente Hipermercados, SA	-	-	56.00%	284,190,240
Modelo Continente Seguros - Sociedade de Mediação, Lda	75.00%	3,161,250	75.00%	3,161,250
Modelo.Com - Vendas por Correspondência, SA	100.00%	12,637,016	100.00%	12,637,016
Predicomercial - Promoção Imobiliária, SA	100.00%	6,372,293	100.00%	6,372,293
Raso, SGPS, SA	50.00%	24,500,000	50.00%	24,500,000
Selifa - Sociedade de Empreendimentos Imobililiários, SA	100.00%	1,513,379	100.00%	1,488,379
Sempre à Mão - Sociedade Imobiliária, SA	100.00%	1,530,558	100.00%	1,530,558
Sempre a Postos - Produtos Alimentares e Utilidades, Lda	25.00%	249,399	25.00%	249,399
Sesagest - Projectos e Gestão Imobiliária, SA	100.00%	36,677,088	100.00%	36,677,088
Socijofra - Sociedade Imobiliária, SA	100.00%	550,000	100.00%	550,000
Sociloures - Sociedade Imobiliária, SA	100.00%	10,000,000	100.00%	10,000,000
Soflorin, BV	100.00%	257,309,037	100.00%	257,309,037
Sonae - Specialized Retail, SGPS, SA	100.00%	1,050,000,000	100.00%	1,050,000,000
Sonae Capital Brasil, SA	37.00%	23,334,858	37.00%	23,334,858
Sonae Center Serviços II, SA	100.00%	58,032,319	100.00%	50,000
Sonae MC - Modelo Continente, SGPS, SA	100.00%	600,000,000	100.00%	50,000
Sonae Retalho España, SA	100.00%	2,549,831	100.00%	2,549,831
Sonaegest - Soc. Gest. de Fundos de Investimentos, SA	20.00%	159,615	20.00%	159,615
Sonaerp - Retail Properties, SA	100.00%	114,495,350	100.00%	114,495,350
Sondis Imobiliária, SA	100.00%	474,940	100.00%	474,940
Sontária - Empreendimentos Imobiliários, SA	100.00%	10,600,000	100.00%	10,600,000
Sonvecap, BV	100.00%	3,000,000	100.00%	3,000,000
Tlantic Portugal - Sistemas de Informação, SA	100.00%	443,316	100.00%	443,316
Todos os Dias - Comércio Ret. e Expl. de Centros Comerciais, SA	100.00%	1,180,000	100.00%	1,180,000
Valor N, SA	100.00%	2,087,315	100.00%	2,087,315
		2,768,550,342		2,395,503,263
Impairment of investments		(45,868,497)		(45,868,497)
		2,722,681,845		2,349,634,766

During the period Sonae Investimentos disposed of the following subsidiaries: Modelo Continente Hipermercados, SA, Edições Book.it, SA and Difusão – Sociedade Imobiliária, SA (Note 14).

During the period Sonae Investimentos fully subscribed a share capital increase of its subsidiary Sonae MC – Modelo Continente, SGPS, SA. Additionally, part of Modelo Continente Hipermercados, SA acquisition cost was allocated to Sonae Center Serviços II, SA following the demerger of Modelo Continente Hipermercados, SA into Sonae Center Serviços II, SA.

5 DEFERRED TAX

Deferred tax assets and liabilities as of 30 September 2010 and 31 December 2009, taking into consideration the temporary differences that generated them, can be detailed as follows:

	Assets
	30.September.2010	31.December.2009
Derivatives	920,611	1,601,258
Impairment losses of assets not accepted for tax purposes	-	134,900
	920,611	1,736,158
	Liabilities
	30.September.2010	31.December.2009
Differences betw een amortizations for accounting and tax purposes	1,403	1,379
	1,403	1,379

6 OTHER NON-CURRENT ASSETS

As at 30 September 2010 and 31 December 2009 other non-current assets are detailed as follows (Note 19):

	30.September.2010	31.December.2009

Loans granted to group companies	1,325,412,665	1,000,150,633

These loans bear interests at usual market rates and do not have a defined maturity.

7 TRADE ACCOUNTS RECEIVABLE AND OTHER CURRENT ASSETS

As at 30 September 2010 and 31 December 2009 trade account receivables and other current assets are detailed as follows:

	30.September.2010	31.December.2009
Trade accounts receivable	282,264	1,319,180
Group companies	247,589,924	310,119,510
Other debtors	5,491,114	6,242,723
Taxes recoverable	713,784	668,567
Other current assets	28,688,773	4,337,057
	282,765,859	322,687,037

The heading group companies includes: (i) the amount of 219,651,000 euro (157,125,888 euro in 31 December 2009) related to short term loans to group companies (Note 19); (ii) the amount of 27,938,924 euro (21,753,472 euro in 31 December 2009) related to income tax calculated by group companies taxed in accordance with the Special Regime for Taxing Group Companies.

The heading other debtors includes 5,113,681 euro (5,214,780 euro in 31 December 2009), related to tax claims of tax assessments paid to tax authorities. No provision or impairment was recorded in order to face possible losses as it is understood by the Board of Directors that the outcome of these claims will be favourable to the Company.

The caption "Other current assets" includes mainly receivables relating to interests, from loans granted to group companies.

8 CASH AND CASH EQUIVALENTS

As at 30 September 2010 and 31 December 2009 cash and cash equivalents are detailed as follows:

	30.September.2010	31.December.2009
Cash	550	813
Bank deposits	94,308	51,972,610
Cash and cash equivalents on the balance sheet	94,858	51,973,423

Bank overdrafts	(5,835,542)	(461,760)
Cash and cash equivalents on the statemnet
of cash flow s	(5,740,684)	51,511,663

Bank overdrafts are recorded in the balance sheet under the caption "Current loans" (Note 10).

9 SHARE CAPITAL

As at 30 September 2010 and 31 December 2009, the share capital, which is fully subscribed and paid for, is made up of 1,000,000,000 ordinary shares with a nominal value of 1 euro each.

As at 30 September 2010 and 31 December 2009, the share capital was held as follows:

	30.September.2010	31.December.2009
Sonae, SGPS, SA	82.48%	82.48%
Sonae Investments BV	17.52%	17.52%

10 LOANS

As at 30 September 2010 and 31 December 2009 loans are made up as follows:

	30.September.2010	31.December.2009
Nominal value of bond loans	992,000,000	992,000,000
Up-front fees not yet charged to income statement	(3,460,147)	(4,516,975)
Bond loans	988,539,853	987,483,025
Commercial paper Other bank loans	445,000,000 11,666,666	271,000,000 15,000,000
Up-front fees not yet charged to income statement	(76,035)	(105,107)
Bank loans	456,590,631	285,894,893
Non current loans	1,445,130,484	1,273,377,918
Nominal value of bond loans	-	64,925,000
Up-front fees not yet charged to income statement	-	(25,511)
Bond loans	-	64,899,489
Other bank loans	3,333,334	3,333,333
Up-front fees not yet charged to income statement	(7,668)	(7,668)
Bank overdrafts (Note 8)	5,835,542	461,760
Bank loans	9,161,208	3,787,425
Current loans	9,161,208	68,686,914

Non-current loans

Bonds Modelo Continente 2003 amounting to 82,000,000 euro, repayable after 8 years, in one installment, on 15 October 2011. Interest rate is variable, indexed to Euribor 6 months, with interest paid half-yearly.

Bonds Modelo Continente 2005/2012 amounting to 150,000,000 euro, repayable after 7 years, in one installment, on 2 August 2012. Interest rate is variable, indexed to Euribor 6 months, with interest paid half-yearly. The company has the option to make whole or partial reimbursements, with no extra cost, on the date of the 10th , 11 th , 12 th and 13th coupons.

Bonds Modelo Continente 2007/2012 amounting to 200,000,000 euro, repayable after 5 years, in one installment, on 30 April 2012. Interest rate is variable, indexed to Euribor 6 months, with interest paid half-yearly.

Bonds Sonae Distribuição 2007/2015 amounting to 200,000,000 euro, repayable after 8 years, in one installment, on 10 August 2015. Interest rate is variable, indexed to Euribor 6 months, with interest paid half-yearly. The company has the option to make whole or partial reimbursements, with no extra cost, on the date of the 10th , 12 th and 14th coupons.

Bonds Sonae Distribuição September 2007/2015 amounting to 310,000,000 euro, repayable in two installments of 50% each, on 10 September 2013 and 10 September 2015. Interest rate is variable, indexed to Euribor 6 months, with interest paid halfyearly. The company has the option to make whole or partial reimbursements, with no extra cost, on the date of the 10th , 11 th , 12 th , 13 th , 14 th and 15th coupons.

Bonds Sonae Distribuição 2009/2014 amounting to 50,000,000 euro, repayable in 6 half yearly successive according to the redemption plan as follows: i) 8,000,000 euro, on the 5th, 6th , 7 th, 8th and 9th interest payment date; ii) 10,000,000 euro, on the 10th interest payment date. Interest rate is variable, indexed to Euribor 6 months, with interest paid half-yearly.

Commercial paper programs are committed by financial institutions for a period of 4 years.

As the Company intends to keep these loans for a period superior to one year, those were classified as non-current.

Current loans

On 3 August 2010 Modelo Continente 2005/2010 bond loan of 64,925,000 euro, was totally repaid.

The interest rate as at 30 September 2010 of the bonds and bank loans was, on average, 1.69% (1.65% as at 31 December 2009).

11 TRADE CREDITORS AND OTHER CURRENT LIABILITIES

As at 30 September 2010 and 31 December 2009, trade creditors and other current liabilities are detailed as follows:

	30.September.2010	31.December.2009
Trade accounts payable	9,522	261,857
Group companies	554,795,672	342,971,182
Other accounts payable	4,393	8,151
Tax and contributions payable	6,245,338	21,559,067
Derivatives	4,272,022	7,823,283
Other current liabilities	10,691,189	8,958,426
	576,018,136	381,581,966

The heading group companies includes: (i) the amount of 544,811,766 euro (338,078,379 euro as at 31 December 2009) related to short term loans from group companies (Note 19); (ii) the amount of 9,750,776 euro (4,659,673 euro as at 31 December 2009) related to income tax computed by the group companies taxed in accordance with the Special Regime for Taxing Groups of Companies; (iii) the amount of 233,130 euro (same amount as at 31 December 2009) related with the request for reimbursement claim of the 2003 special payment on account of income tax paid by the companies taxed according with the Special Regime for Taxing Groups of Companies.

The caption "Other current liabilities" mainly includes accrued interests not yet due relating to loans obtained.

12 CONTINGENT ASSETS AND LIABILITIES

As at 30 September 2010 and 31 December 2009, contingent assets and liabilities are detailed as follows:

		30.September.2010	31.December.2009
Guarantees rendered:
related to tax claims aw aiting outcome	(a)	162,150,255	95,643,815
related to local and municipal claims aw aiting outcome		289,380	289,380
others		10,761,324	10,761,324
Guaranted given in favour of a subsidiary	(b)	47,369,533	46,893,361

a) Includes the amount of 160,162,874 euro (93,656,434 euro as at 31 December 2009) referring to corporate income tax claims awaiting outcome and the amount of 1,985,386 euro (same amount as at 31 December 2009) relating to stamp duty claims.

b) Guarantees given to Tax Authorities in favour of subsidiaries to suspend claims from tax authorities.

No provision has been recognized for these tax additional assessments, to which some guarantees were made, as the Board of Directors expects their outcome to be favorable to the Company with no additional liability.

Following the disposal of a Brazilian subsidiary company, the group guaranteed to that subsidiary company buyer all the losses it will have as consequence of tax additional assessments as it is described in the Note of Contingent Assets and Liabilities in the Consolidated financial statements.

13 RELATED PARTIES

Balances and transactions with related parties are detailed as follows:

	30.September.2010	30.September.2009
Transactions:
Group companies	749,997	749,997
Associated companies	495,050	494,514
Services rended	1,245,047	1,244,511
Group companies	7,500	7,500
Jointly controlled companies	-	6,180
Other related parties	10,607	20,790
Purchases and services obtained	18,107	34,470
Parent company	545	-
Group companies	444,227	1,339,352
Other income	444,772	1,339,352
Parent company	9,769	-
Group companies	24,896,884	56,170,429
Jointly controlled companies	95,565	216,671
Interest income	25,002,218	56,387,100
Parent company	522,223	187,332
Group companies	6,153,842	10,599,603
Jointly controlled companies	33	13,050
Interest expenses	6,676,098	10,799,985
Group companies	9,550,246	1,050,859
Associated companies	896,902	261,660
Dividend income	10,447,148	1,312,519
Group companies	934,525,000	11,000
Disposal of investements	934,525,000	11,000
Group companies	451,000,000	-
Acquisition companies	451,000,000	-

	30.September.2010	31.December.2009
Balance:
Parent company	27,660	15,837
Group companies	53,361,581	154,762,925
Jointly controlled companies	20,386	111,531
Associated companies	346,648	165,716
Other related parties	33,972	192
Accounts receivable	53,790,247	155,056,201
Parent company	76,316	447,617
Group companies	15,953,764	6,597,394
Jointly controlled companies	600	9,678
Other related parties	389	142
Accounts payable	16,031,069	7,054,831
Group companies	1,542,563,665	1,151,916,978
Jointly controlled companies	2,500,000	5,359,543
Loans granted (Note 19)	1,545,063,665	1,157,276,521
Group companies	544,811,766	338,040,379
Jointly controlled companies	-	38,000
Loans obtained (Note 19)	544,811,766	338,078,379

All Sonae, SGPS, SA and Efanor Investimentos SGPS, SA subsidiaries, associates and joint ventures are considered related parties and are identified in the Consolidated Financial Statements.

14 GAINS OR LOSSES ON INVESTMENTS

As at 30 September 2010 and 2009, investment income can be detailed as follows:

	30.September.2010	30.September.2009
Dividends	10,447,148	1,312,520
Gains on the sale of investments	361,833,645	-
	372,280,793	1,312,520

The amount recorded as gains on disposal of investments is related to the disposal of the companies Modelo Continente Hipermercados, SA (352,517,079 euro), Edições Book.it, SA (1,800,000 euro) and Difusão - Sociedade Imobiliária, SA (7,516,566 euros).

15 FINANCIAL INCOME / LOSSES

As at 30 September 2010, this caption includes the amount of 25,046,143 euro (57,213,236 euro as at 30 September 2009) related to receivable interests and the amount of 28,092,873 euro (46,997,025 euro as at 30 September 2009) related to payable interests.

16 EARNINGS PER SHARE

As at 30 September 2010 and 31 December 2009, earnings per share were calculated taking into consideration the following amounts:

	30.September.2010	30.September.2009
Net Profit
Net profit taken into consideration to calculate basic earnings per share (Net profit foor the period)	367,141,131	5,783,506
Net profit taken into consideration to calculate diluted earnings per share	367,141,131	5,783,506
Number of shares
Weighted average number of shares used to calculate basic earnings per share	1,000,000,000	1,000,000,000
Weighted average number of shares used to calculate diluted earnings per share	1,000,000,000	1,000,000,000
Earnings per share (basic and diluted)	0.3671	0.0058

17 DIVIDENDS

In the annual General Meeting held on 26 April 2010, have been attributed gross dividends of 0.07 euro per share (0.085 euro per share in 2009), corresponding to a total of 70,000,000 euro (85,000,000 euro in 2009).

18 APPROVAL OF FINANCIAL STATEMENTS

The accompanying financial statements were approved by the Board of Directors and authorized for issue on 15 November 2010.

19 INFORMATION REQUIRED BY LAW

Decree-Law nr 318/94 art 5 nr 4

During the period ended 30 September 2010 shareholders' loan contracts were entered into with the following companies:

Soflorin, BV

Sonae MC – Modelo Continente, SGPS, SA

During the period ended 30 September 2010 short-term loan contracts were entered into with the following companies:

Canasta – Empreendimentos Imobiliários, SA

Chão Verde - Sociedade de Gestão Imobiliária, SA

Citorres - Sociedade Imobiliária, SA

Contibomba - Comércio e Distribuição de Combustíveis, SA

Cumulativa - Sociedade Imobiliária, SA

Estevão Neves – Hipermercados da Madeira, SA

Imomuro – Sociedade Imobiliária, SA

MJLF – Empreendimentos Imobiliários, SA

Pharmaconcept – Actividades em Saúde, SA

Pharmacontinente – Saúde e Higiene, SA

Raso, SGPS, SA

Selifa – Sociedade de Empreendimentos Imobiliários, SA

Sonae, SGPS, SA

Sonae Center Serviços II, SA

Sonae MC – Modelo Continente, SGPS, SA

Sonae - Specialized Retail, SGPS, SA

As at 30 September 2010 amounts owed by affiliated undertakings can be summarized as follows:

Non-current (Note 6) and current (Note 7) granted loans

Company	30.September.2010
Azulino - Imobiliária, SA	4,154,388
Bertimóvel - Sociedade Imobiliária, SA	19,071,000
Canasta - Empreendimentos Imobiliários, SA	2,520,000
Chão Verde - Sociedade de Gestão Imobiliária, SA	64,000
Citorres - Sociedade Imobiliária, SA	3,301,000
Contibomba - Comércio e Distribuição de Combustíveis, SA	26,000
Contimobe - Imobiliária Castelo Paiva, SA	59,031,000
Continente Hipermercados, SA	129,621,000
Cumulativa - Sociedade Imobiliária, SA	2,668,000
Edições Book.it - SA	3,355,000
Farmácia Selecção, SA	2,866,000
Fozimo – Sociedade Imobiliária, SA	1,768,000
Good and Cheap - Comércio Retalhista, SA	15,771,000
Hipotética - Comércio Retalhista, SA	10,231,000
Igimo – Sociedade Imobiliária, SA	648,000
Iginha – Sociedade Imobiliária, SA	12,443,500
Imoconti – Sociedade Imobiliária, SA	15,758,389
Imoestrutura - Sociedade Imobiliária, SA	395,078
Imomuro - Sociedade Imobiliária, SA	4,073,897
Imoresultado – Sociedade Imobiliária, SA	433,000
Imosistema - Sociedade Imobiliária, SA	4,252,266
MJLF - Empreendimentos Imobiliários, SA	3,423,000
Modelo Continente Seguros - Sociedade de Mediação, Lda	2,987,250
Pharmaconcept - Actividades em Saúde, SA	143,000
Pharmacontinente - Saúde e Higiene, SA	11,338,000
Predicomercial - Promoção Imobiliária, SA	9,547,340
Raso, SGPS, SA	2,500,000
Selifa - Sociedade de Empreendimentos Imobiliários, SA	3,588,926
Sempre à Mão - Sociedade Imobiliária, SA	49,270,128
Sesagest - Projectos e Gestão Imobiliária, SA	30,415,348
Socijofra - Sociedade Imobiliária, SA	7,342,145
Sociloures - Sociedade Imobiliária, SA	26,641,721
Soflorin, BV	334,776,610
Sonae MC - Modelo Continente, SGPS, SA	524,601,000
Sonae Retalho España, SA	200,046
Sonaerp - Retail Properties, SA	222,914,988
Sondis Imobiliária, SA	16,065,265
Sontária - Empreendimentos Imobiliários, SA	2,893,380
Tlantic Portugal - Sistemas de Informação, SA	77,000
Valor N, SA	3,887,000
	1,545,063,665

As at 30 September 2010 amounts owed to affiliated undertakings can be summarized as follows:

Current obtained loans (Note 11)

Company	30.September.2010
BB Food Service, SA	996,000
Contibomba - Comércio e Distribuição de Combustíveis, SA	146,743
Chão Verde - Sociedade de Gestão Imobiliária, SA	2,894,023
Efanor - Design e Serviços, SA	2,863,000
Estevão Neves - Hipermercados da Madeira, SA	8,162,000
Fozmassimo - Sociedade Imobliária, S.A.	192,000
Modelo Continente Hipermercados, SA	122,662,000
Modelo Hiper - Imobiliária, SA	2,154,000
Modelo.Com - Vendas por Correspondência, SA	11,843,000
Solaris - Supermercados, SA	5,601,000
Sonae Center Serviços II, SA	13,790,000
Sonae - Specialized Retail SGPS, SA	341,048,000
Todos os Dias - Comércio Ret. e Expl. de Centros Comerciais, SA	1,233,000
Worten - Equipamentos para o Lar, SA	31,227,000
	544,811,766

The Board of Directors

Duarte Paulo Teixeira de Azevedo

Ângelo Gabriel Ribeirinho dos Santos Paupério

Nuno Manuel Moniz Trigoso Jordão

AI Terminal

Patris Investimentos

1946_10-q_2010-11-30_15e85d73-da8a-4977-ac37-8cd978ee8efb.pdf

Head Office: Rua João Mendonça, 529 – 4464-501 Senhora da Hora

Share Capital 1.000.000.000 Euro

Management Report Sonae Investimentos – S.G.P.S., S.A.

Activity evolution

Capital structure

Outlook

Glossary

Turnover (t)

Operating Cash-flow (EBITDA)

Operating results (EBIT)

Net Investment

Net debt

Gearing

Net Capital Employed

Condensed consolidated

CONDENSED CONSOLIDATED BALANCE SHEET AT 30 SEPTEMBER 2010 AND 2009 AND AT 31 DECEMBER 2009

CONDENSED CONSOLIDATED INCOME STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Amounts expressed in euro)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009 (Translation of condensed consolidated financial statements originally issued in Portuguese.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009 (Translation of condensed consolidated financial statements originally issued in Portuguese. In case of discrepancies the Portuguese version prevails.)

(Amounts expressed in euro)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2010

1 INTRODUCTION

2 PRINCIPAL ACCOUNTING POLICIES

2.1 Basis of preparation

3 CHANGES IN ACCOUNTING POLICIES

4 GROUP COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

SONAE INVESTIMENTOS, SGPS, SA

SONAE INVESTIMENTOS, SGPS, SA

SONAE INVESTIMENTOS, SGPS, SA

SONAE INVESTIMENTOS, SGPS, SA

5 JOINTLY CONTROLLED COMPANIES

6 INVESTMENTS IN ASSOCIATES

7 OTHER NON-CURRENT INVESTMENTS

8 CHANGES TO THE CONSOLIDATION PERIMETER

9 TANGIBLE ASSETS

10 INTANGIBLE ASSETS

11 GOODWILL

12 OTHER INVESTMENTS

13 OTHERNON-CURRENTASSETS

14 TRADE ACCOUNTS RECEIVABLE AND OTHER CURRENTASSETS

15 DEFERREDTAX

16 CASHANDCASHEQUIVALENTS

17 SHARE CAPITAL

18 LOANS

19 DERIVATIVES

Exchange rate derivatives

Interest rate derivatives

Fair value of derivatives

20 OTHERNON-CURRENT LIABILITIES

21 SHARE BASEDPAYMENT PLANS

22 TRADE CREDITORS AND OTHER CURRENT LIABILITIES

23 PROVISIONSANDACCUMULATEDIMPAIRMENT LOSSES

24 CONTIGENTASSETSANDLIABILITIES

25 RELATEDPARTIES

26 INCOME TAX

27 EARNINGS PER SHARE

28 DIVIDENDS

29 SEGMENT INFORMATION

Food based retail

Specialized Retail

Investment Management

Retail Real Estate

Elimination and adjustments

Operational Cash-flow (EBITDA)

Capital employed

30 APPROVAL OF THE FINANCIAL STATEMENTS

Condensed individual financial statements

CONDENSED INDIVIDUAL BALANCE SHEETS AS AT 30 SEPTEMBER 2010 AND 2009 AND AS AT 31 DECEMBER 2009

CONDENSED INDIVIDUAL INCOME STATEMENTS FOR THE PERIODS ENDED 30 SEPTEMBER 2010 AND 2009

(Amounts expressed in euro)

CONDENSED INDIVIDUAL STATEMENTS OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED AT 30 SEPTEMBER 2010 AND 2009

(Amounts expressed in euro)

CONDENSED INDIVIDUAL STATEMENTS OF CHANGES IN EQUITY FOR THE PERIODS ENDED AT 30 SEPTEMBER 2010 AND 2009