Altri SGPS — Annual Report 2014

Apr 15, 2015

ANNUAL REPORT

DECEMBER 31, 2014

INTRODUCTION 4
MACROECONOMIC BACKGROUND 6
STOCK EXCHANGE EVOLUTION 8
GROUP'S ACTIVITY 10
CORPORATE RESPONSIBILITY AND SUSTAINABILITY 14
FINANCIAL REVIEW 16
ACTIVITY DEVELOPED BY THE NON-EXECUTIVE MEMBERS OF THE BOARD OF DIRECTORS 19
PROPOSAL OF THE BOARD OF DIRECTORS FOR APPROPRIATION OF THE NON CONSOLIDATED NET PROFIT FOR THE YEAR 20
2015 OUTLOOK 21
CORPORATE GOVERNANCE 24
LEGAL MATTERS 59
CLOSING REMARKS 61
DECLARATION OF RESPONSIBILITY 64
APPENDIX I 65
CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 80

To the Shareholders

Pursuant to the legal and statutory requirements, the Board of Directors of Altri, S.G.P.S., S.A. hereby presents its Director's Report for the year 2014. According to number 6 of article 508 - C of the Portuguese Companies Act, the Board of Directors decided to submit a single Board of Directors' Report, fulfilling all legal requirements.

INTRODUCTION

Altri was incorporated as of March 2005, as a result of the demerger of Cofina. Altri is a reference European producer of bleached eucalyptus pulp and is a listed company included in NYSE Euronext Lisbon, integrating the PSI 20 (Portuguese Stock Index), the benchmark stock market index. In addition to pulp production, the company is also present in the sector of renewable energy based on forest resources, namely industrial cogeneration from black liquor and biomass. The forestry strategy is based on full use of all the components provided by the forest: pulp, black liquor and forest wastes.

Over the past years, Altri invested in Portugal about 510 million euro, mainly on Celbi and Celtejo unities. Currently, Altri owns three pulp mills in Portugal with a total capacity above 990,000 tons/year of bleached eucalyptus pulp in 2014. There is an ongoing process of small investments, to increase production capacity of Celbi and Caima, whose completion is expected to occur in the second quarter of 2015. Caima, after the completion of the conversion project to dissolving pulp will produce 105 thousand tons. On the other hand, Celbi will have an installed capacity exceeding 700 thousand tons of bleached pulp type BEKP.

Currently, Altri manages over 84 thousand hectares of forest in Portugal. The company obtained certification from the Forest Stewardship Council® (FSC®)1 and Programme for the Endorsement of Forest Certification (PEFC), two of the most worldwide acknowledged certification entities.

Altri's industrial strategy implementation is based on integrated forest management in Portugal. This model is based on forest optimization, ensuring a full recovery of all its components. Thus, the eucalyptus is processed in Altri mills, producing pulp and power (cogeneration). The bark, the branches and forest waste are used to produce electric energy from biomass.

Until June 2008, Altri had another industrial activity through F. Ramada, which was devoted to retail steel and development of industrial solutions for storage systems. In June 2008 took place the demerger of F. Ramada. The strategic rational of this operation lies in focusing Altri exclusively on its core business: forest management and production of pulp.

Since the beginning of its activity Altri carried out various acquisitions (Celtejo in 2005 and in 2006 Celbi) that allowed Altri to reinforce its position in its operating markets through the development of a set of capacity increase projects.

For a better valuation of forest resources, Altri acquired in 2005, 50% of EDP Produção - Bioeléctrica, S.A., in a jointventure with EDP to produce electricity from forest biomass. This company is leader in its market segment with a share of 50% of licenses to produce electricity through forest biomass.

¹ FSC-C004615

Altri's organic structure is as follows:

MACROECONOMIC BACKGROUND

The year 2014 was marked, in geopolitical terms, by the strong disputes between Russia and Ukraine of which resulted the annexation of the Crimea by the first, which resulted in the imposition of international sanctions. 2014 was also marked by the strong appreciation of the dollar against most world currencies and by the sharp fall in oil that threatens to radically change the existing economic power relationship between producer and consumer countries.

In Europe, beyond the impact of the situation in Ukraine, 2014 was a quieter year than the previous years, until near the end of the year. At that time, Greece has emerged again as a source of concern, with the schedule of elections for 2015. The growth was again very low and the economy takes a long time to regain dynamism. The policies pursued by the ECB to lower rates for negative values and gradually enter in a process of placing more liquidity in the markets, have not had effect economically in 2014. Even with low interest rates, with much less valued currency against the dollar and the fall in energy prices, the European economy was almost stagnant. The most indebted countries now have greater access to the market and to lower rates, a situation that led to the consolidation effort by expenditure adjustment started to fall behind.

The European Central Bank reference rate dropped to 0.05% and the rate of daily absorption of liquidity was placed in -0.20%, meaning that banks with excess liquidity on their balance sheets now have to pay to deposit in the ECB.

After a 0.4% fall in 2013, the GDP in the euro area will have increased 0.1% in 2014. However, the unemployment continued to be a major problem.

The Portuguese economy has stabilized its activity in 2014, a trend that is expected to have continuity in the following future quarters, continuing the recovery that began in 2013. The latest figures released by the Bank of Portugal indicate a growth of 0.9% in 2014.

In a year that Portugal has successfully completed the financial and economic assistance program, domestic demand took over the lead role in GDP growth. This domestic demand standardization context resulted in an increase in imports, which has made the contribution of external demand was negative - a standard of the Portuguese economy situation.

In terms of inflation, Portugal does not flee to the negative trend felt in most advanced economies and particularly in the euro zone. Inflation in Portugal ended the year at -0.4% (average inflation of -0.3%), with the fall in oil prices contributing to this fall, which can continue for at least the first months of 2015 when the effect may even intensify.

The predictions for 2015 reflect the continuity of the process of moderate economic recovery and the gradual adjustment of the macroeconomic imbalances, with the Bank of Portugal predicting an increase of 1.5% for this year.

These projections are in line with the Government (the OECD and EC are more moderate, pointing to 1.3%) and assume a continued growth on exports, as well as an acceleration of investment, along with some deceleration in private consumption - the evolution of domestic demand is expected to remain constrained by high private sector indebtedness and the fiscal consolidation.

After a first quarter with negative growth of 2.9%, much by fault of unusually adverse weather conditions, the US economy grew at a rate that is no longer recorded long ago, with + 4.6% to + 5 % in the second and third quarters respectively. The unemployment rate continued to fall, closing the year at 5.6% and the trade balance continues to improve, which is not surprising given the constant fall in the imported oil values, both in terms of quantity or price.

On the other hand, an important part of the growth of recent years originated from the oil and gas holdings originating from the shale, so the decline in oil prices in international markets could have an impact on GDP.

With regard to monetary policy, there is a gradual reduction of the monthly program of buying Treasury bonds, until its extinction in October.

In terms of future predictions, the IMF has lowered by 0.3 percentage point the forecasts for the world economy in 2015 and 2016 to 3.5% and 3.7%, respectively. The Institution considers that the depreciation of currencies like the euro and the yen, and especially the fall in oil prices, are insufficient to offset the legacy of the financial crisis in many countries, it urged governments and central banks to continue with accommodative monetary policies.

The US has again a positive prediction, with a growth projection of 3.6% in 2015 (compared to 3.1% previously predicted). In the euro zone, the only positive point is Spain, where the growth was also revised upwards (from 1.7% to 2.0%).

STOCK EXCHANGE EVOLUTION

(Note: in order to enable a better comparison of the stock fluctuations, the PSI 20 index has been considered as being equal in value to the opening price of the shares.)

Altri's shares recorded an increase of 11% in 2014, exceeding the index who recorded a fall of 26.8% in the same period.

Altri's share price closed 2014 at 2.483 Euro per share. The market capitalization at the end of 2014 was about 509 million Euro.

During 2014, Altri's shares were traded at a maximum price of 2.941 Euro per share and the minimum of 1.971 Euro per share. In total, 94 million Altri shares were traded in 2014, equivalent to 46% of the issued capital.

The main events that marked the evolution of the company's shares during 2014 may be described chronologically as follows:

On March 6, the Group announced its financial performance for the year 2013, standing consolidated net profit of 55 million Euro. The consolidated total revenues amounted to 573 million Euro, representing an

increase of 6% over 2012. Consolidated EBITDA amounted to 141 million Euro, recording a slight decrease of 1% over the previous year. At that date, shares closed quoting at 2.941 Euro per share;

• In the statement made on April 24, 2014, Altri informed the market about the resolutions of the General Meeting held on that date whereas it was approved, among others, the proposed distribution of dividends corresponding to 0.042 Euro per share;
• On May 6, 2014, the Company informed the market on the issuance of a bond loan, by private placement in the amount of 70,000,000 Euro, for a period of four years and six months, named "ALTRI/NOVEMBRO 2018".
• On May 7, 2014, the Company informed the market that the dividends for the year 2013 would be paid from May 22 onwards;
• Through an announcement made on May 7, the Group announced results for the first quarter of 2014. The consolidated total revenues during this period reached 129 million Euro. EBITDA reached 26 million Euro and the consolidated net profit was 7.7 million Euro.
• On July 31, Altri announced to the market the result of the 1st half of 2014 presenting a total income of 264 million Euro (-11%), an EBITDA of about 27 million Euro (-31%) and a net profit of about 13 million Euro (- 57%) comparing to the same period of 2013.
• On October 28, Altri announced results of the third quarter of 2014. The Group reached a total revenues of 406.7 million Euro (-8%); EBITDA reached 82.3 million Euro (-26%) and the net profit was about 22.9 million Euro (-47%), compared to the first nine months of 2013.

GROUP'S ACTIVITY

With its genesis in the reorganization process of Cofina with the purpose of setting into a separate holding the industrial operations, Altri held until 1 June 2008 the investments in the paper, pulp, steel and storage systems. On that date the business of steel and storage systems was demerged to F. Ramada Investimentos SGPS, S.A.. This reorganization was part of a focusing and business transparency strategy, aiming at giving greater visibility to each area and increasing market's perception of value.

The main investments held by Altri are as follows:

• Caima Indústria de Celulose (Constância), producer and distributor of paper pulp;
• Celulose da Beira Industrial (Celbi) (Figueira da Foz), producer and distributor of paper pulp;
• Celtejo Empresa de Celulose do Tejo (Vila Velha de Ródão), producer and distributor of paper pulp;
• Altri Florestal (Constância), manager of the Group's forestry resources.

Moreover, in order to fulfil its energetic needs and expand its activity in a strategic sector, the Group holds a participation of 50% of the share capital of EDP Bioeléctrica.

Location of the industrial units of the Group Location of the centrals of energy production

Altri's complete structure of participation as of 31 December 2014 is as follows:

Pulp Market

According to Pulp and Paper Products Council (PPPC), in 2014, total demand for hardwood pulp increased by 3.3%, highlighting the type produced by eucalyptus, which registered an increase of 8.7%, compared to 2013.

The consumption of hardwood pulp, in 2014, reached 29.8 million tons, which represents an increase by 940 thousand tons over the previous year. In geographical terms, China consumed 8.8 million tons in 2014, which represents an increase of 5.7% compared to 2013, while the consumption in Occidental Europe reached 8.8 million tons, which represents an increase of 1.7%.

In the 4th quarter of 2014, the BEKP price, in USD, was categorized by a slight increase of 1% compared to previous quarter. However, when converted to euro, the increase was much more pronounced, reaching 7%. Thereby, the average market price was 735USD/ton, in the 4th quarter of 2014 (vs 728 USD/ton in the 3rd quarter of 2014 and 770 USD/ton in the same period of 2013), while in EUR it reached 589 EUR/ton (vs 549 EUR/ton in the 3rd quarter of 2014 and 566 EUR/ton in the same period of 2013).

Market price evolution in BEKP pulp in Europe since 2003 until the end of 2014 (EUR)

Source: Hawkins Wright

In 2014 Altri reached, again, a new record of production and sales of pulp. Thus, during this year Altri's three mills produced 990.7 thousand tons of pulp.

Evolution of pulp production between 2013 and 2014 by mill (thousand tons)

The main Altri mill, Celbi, produced 687 thousand tons of pulp, which represents an increase of about 20.4 thousand tons compared to 2013 (+3%); Celtejo produced 218 thousand tons, representing an increase of 0.6 (+0.3%) and Caima produced 86 thousand tons, which represents a decrease of 3.2 thousand tons compared to 2013 (-4%). The decrease recorded in Caima's production is related to the conversion to dissolving pulp. It is expected that the project ends in June 2015, increasing the level of capacity of the industrial unit to 105 thousand tons.

In terms of pulp sales, 998 thousand tons were sold, more 3.5% of pulp sales compared to 2013 (964 thousand tons).

Evolution of sales between 2013 and 2014 by mill (thousand tons)

Pulp sales by region and detail by use

In 2014, Altri's total revenues reached 552.9 million Euro, which represents a reduction of 3.4% compared to 2013. The pulp sales reached 448.5 million Euro.

In 2014, Altri exported about 933.7 thousand tons of pulp, which represents an increase of 3% compared to the previous year. Europe (excluding Portugal) is the main destination market, representing 77% of the Group sales, that is, approximately 771 thousand tons. Asia is the destination market of the dissolving pulp currently produced in Caima, and is the second biggest destination market, representing about 9% of the pulp sales.

In terms of pulp use, tissue paper producers are Altri's main clients, with a share of 50% (46% in 2013).

CORPORATE RESPONSIBILITY AND SUSTAINABILITY

Altri believes that the welfare of its stakeholders, including society in general, their customers, their suppliers, their employees and their shareholders, depends on the continued success of the company and on its commitment to sustainable development.

Altri is responsible to continuously improve its environmental and social performance looking for a continued increase in return of capital from its shareholders.

Environment: renewable raw materials from sustainably managed forests are the base for the production of Altri's pulp in Portugal, which manages a large area of certified forest, and all the wood produced in these areas is to supply its mills.

Altri is self-sufficient in electricity, using cogeneration systems where it is made a combined production of thermal energy and electrical power for industrial use. The excess of electricity is placed in the national network. Investment in new technologies and investing in best practices in energy efficiency have enabled to produce almost all its energy by the burning of biofuels.

It has taken a lot of efforts in optimizing the balance of electric power in Altri's mills, reflecting the importance of energy for the Group. Also, the water consumption has declined over the years.

The emission of some gaseous pollutants also reduced significantly, showing the Group's commitment to continuous improvement of its environmental performance.

The other indicators of eco-efficiency and environmental performance in the areas of water, air, waste and natural resources, have remained stable and in line with the best available techniques defined for the sector of pulp and paper reflected in the environmental certifications of the three mills of Altri.

Certification of Management Systems: All industrial units of Altri have its management systems certified in accordance with the requirements of ISO 9001, ISO 14001 and OHSAS 18001 and have their laboratories certified by ISO / IEC 17025. Celbi and Celtejo have implemented energy management systems, certified according to ISO 50001. Celbi and Caima are also registered under EMAS, a Community Eco-management and Audit System of the European Union. Celtejo has its system of Research, Development and Innovation certified by the Norm NP 4457.

The responsibility's chains of wood supply are also certified by international standards of forest management (FSC® – Forest Stewardship Council ® and PEFC - Programme for the Endorsement of Forest Certification Schemes), which demonstrates the commitment established in the supply policy of Altri to check the origin of the wood along the supply chain.

Human Resources: Investing in developing the skills of senior staff, the Group began in 2013 a training program which will run until mid-2015, with the goal of consolidating knowledge in areas of communication, management and leadership techniques. This challenge is partnered with Porto Business School.

Social Responsibility: In its relationship with society, Altri streamlines the economy of the areas in which it operates, particularly in the creation of direct and indirect employment. It also has a policy of granting internships, whether professional or as a complement to the school curriculum, which allow young people the opportunity to have contact with a business reality.

In partnership with several local institutions, Altri tries to develop and support initiatives and activities essential to the creation of relevant relationships with the surrounding community. Through donations and logistical support, the Group seeks to identify and support projects with merit and impact on the population's quality of living.

FINANCIAL REVIEW

The consolidated financial information of Altri was prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union.

The key data and indicators of consolidated activity of Altri Group can be summarized as follows:

thousand euro	2013	2014	2014/2013 Var%
Sales	550,432	533,679	-3.0%
Services rendered	8,638	9,000	4.2%
Other income	13,500	10,179	-24.6%
Total Revenues	572,571	552,858	-3.4%
Costs of sales	240,344	254,825	6.0%
External supplies and services	151,341	152,040	0.5%
Payroll expenses	27,376	29,778	8.8%
Other expenses	12,134	2,759	-77.3%
Provisions and impairment losses	-25	-78	214.2%
Total expenses (a)	431,170	439,323	1.9%
EBITDA (b)	141,400	113,535	-19.7%
Margin	24.7%	20.5%	-4.2 pp
Amortisation and depreciation Other indirect taxes	49,236 3,423	48,520 0	-1.5% -
EBIT (c)	88,742	65,015	-26.7%
Margin	15.5%	11.8%	-3.7 pp
Gains and losses in associated companies Financial expenses Financial income	2,305 -30,986 5,223	2,741 -34,506 7,365	18.9% 11.4% 41.0%
Financial profit	-23,458	-24,401	4.0%
Profit before income tax	65,283	40,614	-37.8%
Income tax Minotity interest	-9,917 18	-3,223 9	ss ss
Profit for the period attributable to parent company's shareholders	55,348	37,382	-32.5%

(a) operating costs excluding amortisation, financial expenses and income tax

(b) EBITDA = Earnings before interests, taxes, depreciation and amortisation

(c) EBIT = Earnings before interest and taxes

Altri's total revenues reached 552.9 million euro in 2014, which represents a reduction of 3.4% compared to 2013.

Excluding depreciation, financial costs and taxes, total costs in 2014 reached approximately 439.3 million euro, a 1.9% increase compared to 2013. With regard to payroll, the Group changed its pension funds from defined benefit to defined contribution.

The evolution in the caption "other costs", which decreased 77%, reflects the reduction of the impact of pulp future contracts either by the decline in pulp prices in 2014, either because the last contracts reached their maturity.

During the year 2014 there was a relative stability on the weighted average cost of wood.

In 2014 EBITDA reached approximately 114 million Euro, a decrease of 20% compared to 2013 and the EBITDA margin of 2014 reached 20.5% (-4.2 p.p.). The operational result (EBIT) recorded a decrease of 27% compared to 2013, reaching 65 million Euro.

The financial result amounted to a net charge of 24.4 million Euro, corresponding to an average cost of debt of 4.4%. The caption "gains and losses in associated companies" essentially refers to the appropriation of 50% of the profit of EDP Bioeléctrica, a company 50% owned by Altri and consolidated by the equity method.

Altri's net profit reached 37.4 million Euro, having recorded a decrease of 33% comparing to the previous year.

Key balance sheet indicators

thousand euro	2013	2014	Var%
Biological assets	107,123.0	105,158.8	-2%
Tangible assets	390,512.5	384,285.5	-2%
Goodw ill	265,531.4	265,531.4	0%
Investments available for sale	14,656.9	10,691.2	-27%
Others	43,534.6	43,226.9	-1%
Total non current assets	821,358.4	808,893.7	-2%
Inventories	54,829.3	54,725.4	0%
Customers	80,294.6	88,868.1	11%
Cash and cash equivalents	232,450.5	260,855.0	12%
Others	32,445.0	25,913.7	-20%
Total current assets	400,019.4	430,362.3	8%
Total assets	1,221,377.8	1,239,256.0	1%
Shareholder's equity and minority interes	241,809.8	272,264.0	13%
Bank loans	74,212.5	103,837.5	40%
Other loans	439,370.3	278,276.9	-37%
Reimbursable subsidies	11,228.4	11,723.8	4%
Others	55,809.3	48,330.3	-13%
Total non current liabilities	580,620.5	442,168.5	-24%
Bank loans	78,693.4	77.2	-100%
Other current loans	213,719.6	398,648.0	87%
Reimbursable subsidies	71.0	9,082.8	12691%
Suppliers	60,034.6	61,686.4	3%
Others	46,429.0	55,329.1	19%
Total current liabilities	398,947.5	524,823.5	32%

The total investment (CAPEX) performed in 2014 by the industrial units amounted to 41.2 million Euro.

Altris's nominal remunerated debt net of cash and investments available for sale as of 31 December 2014 reached 514.7 million Euro corresponding to a decrease about 48.5 million Euro compared to 2013 (563.2 million Euro). It should be highlighted that, in 2014, the company paid 8.6 million Euro in dividends related to 2013. Thus the free cash flow generated in 2014 reached 57.1 million Euro.

Therefore, the company kept its priority financial strategy, which is based on systematic annual reduction of net debt through the free cash flow generated by the operating activity. Thus, it should be noted that, between 2009 and 2014, the net debt was reduced by 285 million Euro.

Evolution of free cash flow equity since 2010

In February 2015, Altri has reimbursed the bonds "Celbi 2015", amounting to 300 million Euro. Altri currently holds unused available credit lines exceeding 150 million Euro.

The weighted average cost of net debt amounted, during 2014, to 4.4%. However, as of today, the weighted average cost of Altri's debt is less than 4%.

ACTIVITY DEVELOPED BY THE NON-EXECUTIVE MEMBERS OF THE BOARD OF DIRECTORS

During 2014, the non-executive directors of the Company have developed regularly and effectively their functions which consist in monitoring and evaluating the activities of the executive directors.

Among others, during 2014, the non-executive directors regularly and actively attended the Board of Directors meetings, discussing the matters under consideration and expressing their respective opinions on the Group's strategic guidelines. Whenever necessary, they maintained a close contact with the financial and operational key staff of the Group companies. In the year 2014, and during the Board of Directors' meetings, the executive members provided all the information required by the remaining members of the Board of Directors.

PROPOSAL OF THE BOARD OF DIRECTORS FOR APPROPRIATION OF THE NON CONSOLIDATED NET PROFIT FOR THE YEAR

Altri, S.G.P.S., S.A., as holding company of the Group, recorded in its individual financial statements prepared in accordance with International Financial Reporting Standards as adopted by the European Union, a net profit of 18,627,109.20 Euro, for which, in accordance with the applicable legislation and the Company's articles of association, the Board of Directors proposes to General Shareholders Meeting the following appropriation:

Legal reserve	931,355.46
Free reserves	1,285,219.98
Dividends distribution	16,410,533.76
	--------------------- 18,627,109.20 ============

2015 OUTLOOK

In operational terms, Celbi, the main industrial unity of Altri group, will perform in April 2015 its programed annual stoppage for maintenance, exceeding 10 days.

Currently, there are in course some small investments that aim to increase the operational efficiency and productive capacity of Celbi and Caima, which conclusion is forecasted to happen April in Celbi and in June in Caima. After the conclusion of the project to convert to specialty pulp, Caima will produce 105 thousand tons. On its hand, Celbi will have an installed capacity of production greater than 700 thousand tons of BEKP pulp.

The actual context of exchange rate EUR/USD has significant impacts in the sales volume and profitability since the pulp selling price is directly related to that exchange rate.

CORPORATE GOVERNANCE

PART I – INFORMATION ON SHAREHOLDER AND ORGANIZATION STRUCTURE AND CORPORATE GOVERNANCE

A. SHAREHOLDER STRUCTURE

I. CAPITAL STRUCTURE

1. The capital structure

Altri, SGPS, S.A. ("Company" or "Altri") share capital amounts 25,641,259.00, fully subscribed was made up of 205,131,672 ordinary shares with a nominal value of 12.5 Euro cents each.

Of the total issued voting rights, 74.76% are, as far as the Company is aware, attributed to the holders of qualifying holdings listed in II.7.

All of the shares representing the share capital are admitted to trading on the regulated market NYSE Euronext Lisbon.

2. Restrictions on the transfer and ownership of shares

Altri's shares have no restrictions on their transfer or on their ownership. Therefore, Altri's shares are freely transferable in accordance with applicable legal standards.

3. Own shares

Altri does not hold any own shares, with reference to December 31, 2014.

4. Important agreements to which the company is a party and that come into effect, amend or terminated in cases such as a change in the control of the company after a takeover bid, and the respective effects

There are no significant agreements concluded by Altri including any clauses of control change (including after a takeover bid), that is, which come into effect, be amended or terminated in such circumstances. Also, there are no specific conditions that limit the exercise of voting rights by shareholders of the Company or other matters that may interfere with the success of takeover bids.

Some financing agreements contain standard clauses of early repayment in the event of change of shareholder control of subsidiaries (and not of the Company). The Company believes that its disclosure would be harmful to her, while not add any benefit to shareholders and considers that these clauses, common in this type of contract, do not aim the adoption of any guarantee or shielding measures in cases of change of control or change in management board composition.

5. System that is subject to the renewal or withdrawal of countermeasures, particularly those that provide for a restriction on the number of votes capable of being held or exercised by only one shareholder individually or together with other shareholders

Altri didn't adopt any countermeasures.

6. Shareholders' agreements that the company is aware of and that may result in restrictions on the transfer of securities or voting rights

It is unknown the existence of any shareholders' agreements involving the Company.

II. Shareholdings and Bonds held

7. Qualifying holdings

As of 31 December 2014 pursuant to the requirements of articles 16 and 20 of the Securities Code ("Código de Valores Mobiliários") and article 448 of the Portuguese Companies Act, the Company informs that, in accordance with the notifications received, the companies and/or individuals that hold qualifying holdings exceeding 2%, 5%, 10%, 20%, 33% and 50% of the voting rights, are as follows:

	Nr. of shares held	% Share capital with
Lazard Frères Gestion SAS	on 31-Dec-2014	voting rights
Through the SICAV OBJECTIF SMALL CAPS EURO (which has delegated the exercise of voting rights to Lazard Frères Gestion SAS)	4,157,000	2.03%
Total attributable	4,157,000	2.03%
	Nr. of shares held	% Share capital with
Norges Bank	on 31-Dec-2014	voting rights
Directly	4,149,572	2.02%
Total attributable	4,149,572	2.02%
	Nr. of shares held	% Share capital with
Bestinver Gestión S.A., SGIIC	on 31-Dec-2014	voting rights
Directly	8,226,265	4.01%
Through BESTINVER BOLSA, F.I.	4,103,653	2.00%
Total attributable	12,329,918	6.01%
	Nr. of shares held	% Share capital with
Pedro Miguel Matos Borges de Oliveira	on 31-Dec-2014	voting rights
Directly	14,359,708	7.00%
Total attributable	14,359,708	7.00%
	Nr. of shares held	% Share capital with
Paulo Jorge dos Santos Fernandes	on 31-Dec-2014	voting rights
Directly	14,113,168	6.88%
Through society Actium Capital - SGPS, SA (of which he is dominant shareholder and director)	8,202,000	4.00%
Total attributable	22,315,168	10.88%
	Nr. of shares held	% Share capital with
Domingos José Vieira de Matos	on 31-Dec-2014	voting rights
Directly	13,564,432	6.61%
Through the Livrefluxo - SGPS, SA (of which he is dominant shareholder and director)	9,885,850	4.82%
Total attributable	23,450,282	11.43%
	Nr. of shares held	% Share capital with
João Manuel Matos Borges de Oliveira	on 31-Dec-2014	voting rights
Through the CADERNO AZUL- SGPS, SA (of which he is shareholder and director)	30,000,000	14.62%
Total attributable	30,000,000	14.62%
	Nr. of shares held	% Share capital with
Ana Rebelo Carvalho Menéres de Mendonça	on 31-Dec-2014	voting rights
Through the PROMENDO - SGPS, SA (of which she is dominant shareholder and director)	42,586,911	20.76%
Total attributable	42,586,911	20.76%

Altri was not informed of any participation exceeding 33% of the voting rights.

8. Number of shares and bonds held by members of the management and supervisory boards, under the terms of 447/5 of the Portuguese Companies Act

The shares and bonds held by members of management and supervisory boards in the Company and in companies in a control or group relationship with the Company, directly or through related persons, are disclosed in the appendices to the Management Report as required by Article 447 of the Portuguese Companies Act and number 7 of Article 14 of Regulation 5/2008 of the Portuguese Securities Market Commission (CMVM).

9. Special powers of the Board of Directors, especially as regards resolutions on the capital increase

The fourth article of Altri's articles of association, according to the deliberation of 31 March 2006, assigned to the Board of Directors powers to manage and represent the Company and carry out all operations related to its corporate purpose including, among others, the possibility to decide, with the prior opinion of the supervisory board of the company, capital increases, by one or more occasions, up to 35 million Euro in cash.

This statutory provision under the paragraph b), number 2, of the article 456 of the CSC , lasted for five years and has not been renewed, in accordance with paragraph 4 of the same legal provision, so that on 31 March 2011 it expired. From that date onwards such power is exclusive of the General Shareholders Meeting.

10. Significant business relationships between the holders of qualifying holdings and the company

In the year 2014 there were no significant business or commercial transactions between the Company and the holders qualifying shareholdings notified to the Company, except those that are part of the normal activity of the company which were performed under normal market conditions for similar transactions. It should be noted, however, that the amounts involved are not material.

B. CORPORATE BOARDS AND COMMITTEES

I. GENERAL MEETING

a) Composition of the Presiding Board of the General Meeting

11. Details and position of the members of the Presiding Board of the General Meeting and respective term of office

As of 31 December 31, 2014, the Board of the General Meeting was composed of the following members: Chairman: José Francisco Pais da Costa Leite Secretary: Cláudia Alexandra Gonçalves dos Santos Dias

The mandate began in 2014 and will have its term in 2016.

b) Exercising the right to vote

12. Restrictions on voting rights

The share capital of the Company is fully represented by a single class of shares, corresponding to each share one vote, there are no statutory limitations on the number of votes that may be held or exercised by any shareholder.

The Company has not issued preferred shares without voting rights.

The participation of shareholders at the General Meeting is dependent, under the law, upon proof of ownership of the shares by reference to the "Record Date".

Individual shareholders with voting rights and companies who are shareholders of the Company may be represented by the person designated for that purpose. The representation should be communicated to the Chairman of the General Meeting, in writing, until the end of the third working day prior to the day scheduled for the meeting.

A shareholder may appoint different representatives for the shares owned in different securities accounts, without prejudice to the principle of unity of vote and of vote in different directions allowed to shareholders acting as professionals.

Shareholders can exercise voting rights via postal voting on all matters subject to the General Meeting which may be exercised by written declaration, together with the identification of the shareholder and his signature duly recognized, as required by law. According to the articles of association, the declaration of intention to cast postal votes and the supporting document proving the quality of shareholder must be delivered in the Company's headquarters, until the end of the third working day prior to the day scheduled for the meeting, with identification of the sender, addressed to the Chairman of the General Shareholders' Meeting. It isn't provided the possibility to exercise voting rights by electronic means. In that regard, the Company has not yet triggered the mechanisms required for its implementation since this modality was never requested by any shareholder and considering that this circumstance does not constitute any constraint or restriction on the exercise of voting rights by shareholders.

The Company discloses, within the legal deadlines, and in all places requested by law, in Portuguese and English, the notice of General Meetings, which contain information on how to enable the shareholders to participate and exercise the right to vote and on procedures to be followed for voting by correspondence or designated representative. The Company discloses also, as required by law, the resolution proposals, preparatory information required by law and the minutes of letter of representation and voting forms for voting by correspondence, all to ensure, promote and encourage shareholder participation, by themselves or by their representatives, in the General Meetings.

13. Maximum percentage of voting rights that may be exercised by a single shareholder or by shareholders that are in any relationship as set out in Article 20/1

There is no limitation on the number of votes that can be held or exercised by a single shareholder or group of shareholders.

14. Shareholders' resolutions that, imposed by the articles of association, may only be taken with a qualified majority

According to the Articles of the Company, the corporate decisions are taken by majority vote, whatever the percentage of share capital represented at the meeting, except when a different majority is required by law.

In a second call, the General Meeting may decide independently of the number of shareholders present and the capital they represent.

The deliberative quorum of the General Meeting is in accordance with the Portuguese Companies Act (CSC).

II. MANAGEMENT AND SUPERVISION

a) Composition

15. Identification of corporate governance model adopted

Altri adopts the model of government called monist, which includes a management structure centralized in a Board of Directors and a supervising structure centralized in a Supervisory Board and a Statutory Auditor.

The Board of Directors is thus the board responsible for management of the Company's business in achieving its social object.

16. Articles of association rules on the procedural requirements governing the appointment and replacement of members of the Board of Directors, the Executive Board and the General and Supervisory Board, where applicable

The Members of the Board of Directors of the Company are appointed by the Shareholders' General Meeting for a three years mandate and may be re-elected once or more.

The Board is made up by three to nine members, shareholders or not, appointed by the Shareholders' General Meeting. At the General Shareholders' Meeting elections, one, two or three Directors shall be elected individually among the candidates proposed on the lists endorsed by groups of shareholders, depending on whether the total number of Directors is three or four, five or six, seven or more than seven, provided that none of the said groups own shares representing over 20 % (twenty per cent) or less than 10 % (ten per cent) of the share capital. Each of the referred lists shall propose at least 2 (two) candidates eligible for each one of the available posts, one of them being nominated as substitute. No shareholder may endorse more than 1 (one) of the mentioned lists.

The General Shareholders' Meeting may not proceed to the election of any further Directors until one, two or three have been elected, as per the dispositions above, unless the above mentioned lists have not been presented. In the case of there being no elected Director, his/her respective substitute shall be called. In the case of there being no substitute, a new election shall be called, in which the dispositions above shall be applied with the necessary adaptations.

17. Composition of the Board of Directors

The Board of Directors is currently made up of 7 members who are responsible for carrying out all the management functions to implement the operations inherent to its corporate goals, acting in the best interests of the Company, its shareholders and other stakeholders. On December 31, 2014 this corporate board was composed of the following members:

• Paulo Jorge dos Santos Fernandes President
• João Manuel Matos Borges de Oliveira Vice-President
• Pedro Macedo Pinto de Mendonça Member
• Domingos José Vieira de Matos Member
• Laurentina da Silva Martins Member
• Pedro Miguel Matos Borges de Oliveira Member
• Ana Rebelo de Carvalho Menéres de Mendonça Member

All Board of Directors members were appointed by the Shareholder's General Meeting held in April 24, 2014 for the period 2014/16.

NAME	FIRST APPOINTMENT	END OF MANDATE
Paulo Jorge dos Santos Fernandes	March 2005	December 31, 2016
João Manuel Matos Borges de Oliveira	March 2005	December 31, 2016
Pedro Macedo Pinto de Mendonça	March 2005	December 31, 2016
Domingos José Vieira de Matos	March 2005	December 31, 2016
Laurentina da Silva Martins	March 2005	December 31, 2016
Pedro Miguel Matos Borges de Oliveira	April 2014	December 31, 2016
Ana Rebelo de Carvalho Menéres de	April 2014	December 31, 2016
Mendonça

18. Distinction to be drawn between executive and non-executive directors and, as regards non-executive members, details of members that may be considered independent

The composition of the Board of Directors complies with a balance between the number of executive and nonexecutive directors.

As of December 31, 2014, the Board of Directors, composed by seven members, included three non-executive members: Pedro Macedo Pinto de Mendonça, Laurentina da Silva Martins and Ana Rebelo de Carvalho Menéres de Mendonça.

The Board Directors does not include any member that satisfies the standard of independence referred in recommendation II.1.7 of Corporate Governance Code issued by the Portuguese Securities Regulator (CMVM) since the non-executive director Pedro Mendonça is relative of holders of qualifying holdings, the non-executive director Laurentina Martins was employee of the subsidiary Caima – Indústria de Celulose, S.A. and the non-executive director Ana Rebelo de Carvalho Menéres de Mendonça, daughter of the director Pedro Macedo Pinto de Mendonça, is the director and controlling shareholder of the company Promendo SGPS, SA.

Despite these conditionals, to allow to the non-executive directors an independent and informed decision, the Company developed some mechanisms:

• Notices of meetings of the Board of Directors sent to all directors include the agenda, even tentatively, of the meeting, and are accompanied by all the relevant information and documentation;
• Availability of executive directors for the provision to non-executive directors, of any additional information which they consider relevant or necessary, and to carry out further studies and analyzes in relation to all matters which are the subject of deliberation or that, are under review in some way, in the Company;
• The non executive directors have wide powers to obtain information on any aspect of the Company, to examine its books, records, documents and other antecedents of the Company's operations. They can request relevant information directly to the directors and to the financial and operating senior staff of all group companies, without requiring any intervention of the executive directors in this process.

Given the corporate model adopted and the composition and mode of operation of its governing boards, including the independence of the supervisory boards, without, delegation of powers among them, the Group considers that the designation of independent directors to the Board would not yield significant improvements for the proper functioning of the corporate governance model, which has revealed itself proper and efficient.

The Director's report includes in its chapter "Activity developed by the non-executive members of the Board," a description of the activity of the non-executive directors during 2014.

19. Professional qualifications and other relevant curricular information of each member of the Board of Directors

The qualifications, experience and positions held in other Companies by the members of the Board of Directors are presented in Appendix I.

20. Customary and meaningful family, professional or business relationships of members of the Board of Directors with shareholders that are assigned qualifying holdings that are greater than 2% of the voting rights

On December 31, 2014, the President of the Board of Directors Paulo Jorge dos Santos Fernandes is a director and controlling shareholder of the company ACTIUM CAPITAL - SGPS, SA, company which owns 4% of the share capital of Altri.

The Vice-President of the Board of Directors João Manuel Matos Borges de Oliveira is a director and shareholder of CADERNO AZUL - SGPS, SA, company which owns a stake of 14.62% in the capital of Altri.

The administrator Pedro Miguel Matos Borges de Oliveira, holder of a 7% stake in the capital of Altri, is brother of the director João Manuel Matos Borges de Oliveira.

The director José Domingos Vieira de Matos is director and dominant shareholder of LIVREFLUXO - SGPS, SA, company which owns 4.62 % of the share capital of Altri, SGPS, SA.

The company Promendo SGPS, SA, holder of 20.76% of the share capital of Altri, SGPS, SA has as its director and dominant shareholder Ana Rebelo de Carvalho Menéres Mendonça, daughter of the director Pedro Macedo Pinto Mendonça.

21. Organisational charts or flowcharts concerning the allocation of powers between the various corporate boards, committees and/or departments within the company, including information on delegating powers, particularly as regards the delegation of the company's daily management

The Board of Directors develops its functions of management and coordination of the Group companies on a collective basis and is currently made up of a president and six members, three of them being non-executive.

The Board has been exercising its activity in constant dialogue with the Supervisory Board and the Statutory Auditor, providing the assistance requested with transparency and rigor, complying their regulations and best practices of corporate governance.

There is no limit to the maximum number of positions that the Board members can accumulate as directors of other companies. The members of Altri's Board of Directors are, in most cases, part of the management of the most significant group companies, so as to enable their activities to be more closely monitored.

The Board of Directors believes that due to its organizational structure, the only essential specialized commission taking into account its size and complexity, is the Remuneration Committee, as explained in paragraph 28 below.

The Remuneration Committee is the board responsible for performance evaluation and approving the remuneration of Board members and other corporate bodies, in compliance with the remuneration policy of the Company, approved by shareholders in General Meetings.

Altri's Corporate Finance area, given its integrated and cross-sectional view at the level of all companies in the group, is responsible, on the one hand, for the definition of financial management strategies and policies and, second, to secure interface capital markets, debt and banking. Altri's Corporate Finance also develops the mechanisms necessary to implement the outlined financial management strategies and policies.

The planning and management control area provides support in the implementation of corporate strategies and / or business, followed by the group. This area prepares and analyzes the management information at the level of all companies in the group, as well as at the consolidated level, monthly, quarterly, semi-annual and annual monitoring deviations from the budget and proposes the necessary corrective measures. Also bears responsibility for building business plans, integrating multidisciplinary work teams created for this purpose, activities that develops along with the ongoing development and technical studies and benchmark existing businesses in order to monitor the performance of Altri having regard to its strategic position.

The legal area provides legal support in all areas of group activity, monitoring and ensuring, on the one hand, the legality of the activities, and ensuring, on the other, relations with Euronext Lisbon, with the CMVM and the shareholders when that in question are legal matters. This area is also responsible for monitoring the corporate governance policy with a view to achieving best practice in this area. This area is also responsible for drawing and / or analysis of contracts that maximize safety and reduce legal risks and potential costs, the management of issues relating to intellectual and industrial property used by the group, such as patents and trademarks, logos, domains and copyright, still exercising the corporate secretarial functions on a permanent monitoring of legal compliance, supporting the Board of Directors to implement their strategies.

The area of investor relations establishes the relationship between the group and the financial community, permanently disseminating relevant and updated information on the same activity. This area is also responsible for assisting the Board of Directors in providing updated information on the capital market as well as aid for the management of institutional relations of Altri, establishing permanent contact with institutional investors, shareholders and analysts and representing the group in associations , forums and events (national or international).

In addition, the operating companies of Altri have their own management control areas that exercise their activity at all levels of the subsidiary companies and prepare monthly reports periodically reported to the respective Boards of Directors.

The distribution of functions between the various members of the Board of Directors is carried out as follows:

Generically, Altri's directors focus their activities in managing the Group holdings and defining its strategic development guidelines. The strategic decisions are adopted by the Board including all its members, executives and non-executives, in the normal accomplishment of their duties.

The daily management of each subsidiary is a responsibility of its Board of Directors, which includes some of Altri's directors but also some other members with defined functions.

Thus, taking into consideration the activities developed by the Board Members, both in Altri and in the several subsidiaries, the functional organizational chart can be presented as follows:

b) Functioning

22. Availability and place where rules on the functioning of the Board of Directors may be viewed

The Board of Directors regulation is available on the website of Altri (www.altri.pt) (tab "About Altri", section "Governance").

23. The number of meetings held and the attendance report for each member of the Board of Directors

The Company's articles of association provide that the Board of Directors shall meet whenever convened by its chairman, on his own initiative or at the request of any other director and at least once a month.

During 2014, the Board of Directors met sixteen times and assiduity corresponded in fourteen meetings, to 100% and in two meetings was only missing the director Pedro Macedo Pinto de Mendonça, which presented, in both cases, justification for absence, and it was considered acceptable.

The meetings of the Board are scheduled and prepared in advance, and timely documentation relating to the matters contained in its agenda are provided, to ensure all members of the Board the conditions for the informed exercise of their functions. Similarly, minutes of meetings, once approved, and the respective notices of meeting are forwarded to the President of the Supervisory Board.

24. Details of competent corporate boards undertaking the performance appraisal of executive directors

The performance assessment of executive directors belongs to the Remuneration Committee and is based on the functions performed by them in Altri and in its subsidiaries, in compliance with the remuneration policy of the Company, approved by shareholders in General Meetings.

The assessment is based on the functions performed by members representing the Board of Directors and other corporate boards of Altri, considering the responsibilities assumed by each of these members, the added value of each and the accumulated knowledge and experience on the job.

25. Predefined criteria for assessing executive directors' performance

The remuneration of executive members of the Board of Directors includes a variable component of medium term (2014 to 2016) computed based on total shareholders' return, on the sum of net profit for that period and on the evolution in the Company's business.

26. Availability of each member of the Board of Directors and details of the positions held at the same time in other companies within and outside the group, and other relevant activities undertaken by members of these boards throughout the financial year

The professional activity of the current members of Altri's Board of Directors, with reference to other companies where they have directors' functions and other relevant activities undertaken are presented in Appendix I.

It should be noted, that the members of Board of Directors showed their total commitment and availability in the exercise of their functions being present and participating in almost 100% of all meetings of that Board.

c) Committees within the Board of Directors

27. Details of the committees created within the Board of Directors and the place where the rules on the functioning thereof is available

The Board of Directors believes that the only committee required to meet the essential needs of the Company, considering its size and complexity, is the Remuneration Committee.

Altri, SGPS, SA has set a Remuneration Committee for the period 2014/2016, which composition is as follows:

• João da Silva Natária President
• José Francisco Pais da Costa Leite Member
• Pedro Nuno Fernandes de Sá Pessanha da Costa Member

The Remuneration Committee has a regulation valid for the current term, approved at a meeting of that committee held on December 2014 and which is available for consultation on the Company's website (www.altri.pt) (tab "About Altri", "Governance" section).

28. Composition, if applicable, of the executive board and/or identification of board delegates

Altri, considering its organizational structure, and the small size of the Board of Directors, composed by seven members, considers it unnecessary a formal appointment of an Executive Committee on the Board of Directors.

As stated in paragraph 18 of this report, four members of the Board of Directors perform executive functions, observing the following:

• (i) notices of meetings of the Board of Directors sent to all directors include the agenda, even tentatively, of the meeting, and are accompanied by all the relevant information and documentation;
• (ii) availability of executive directors for the provision to non-executive directors, of any additional information which they consider relevant or necessary, and to carry out further studies and analyses in relation to all matters which are the subject of deliberation or that, are under review in some way, in the Company;
• (iii) the non executive directors have wide powers to obtain information on any aspect of the Company, to examine its books, records, documents and other antecedents of the Company's operations. They can request relevant information directly to the directors and to the financial and operating senior staff of all group companies, without requiring any intervention of the executive directors in this process.

Thus, the Company considers that are guaranteed the necessary conditions for decisions on strategic matters, taken by the Board of Directors as a body composed of all of its members, executive and non-executive, in the normal performance of their duties, enlightened and informed way, totally focused on creating value for shareholders.

However, the Board has regularly reflected on the adequacy of the organization, having been always the result of these reflections completion of the conformity of this structure with the best corporate governance practices, which has been materialized in the positive performance of the Company.

29. Description of the powers of each of the committees established and a summary of activities undertaken in exercising said powers

As mentioned in paragraphs 27 and 28, the Board of Directors believes that the only specialized committee indispensable to satisfy the needs of the Company, considering its dimension and complexity, is the Remuneration Committee.

According to the Articles of Association, the Remuneration Committee is the corporate board responsible for performance evaluation and approving the remuneration of Board members and other corporate boards, in compliance with the remuneration policy of the Company, approved by shareholders in General Meetings.

The performance assessment of executive directors belongs to the Remuneration Committee and is based on the functions performed by them in Altri and in the Group as well as the responsibility and the added value by each one of the directors and the accumulated experience and knowledge on their functions.

At December 31, 2014 the members of the Board of Directors are not remunerated by Altri, but directly by the subsidiaries where they have functions, so that the actual powers of the Remuneration Committee also focus on setting the remunerations of the company's Board of Directors members paid by other subsidiaries.

III. SUPERVISIONS

a) Composition

30. Details of the Supervisory Board representing the model adopted

The Supervisory Board and Statutory Auditory are the supervision boards of the Company.

31. Composition of the Supervisory Board with details of the articles of association's minimum and maximum number of members, duration of term of office, number of effective members, date of first appointment, date of end of the term of office for each member

The Supervisory Board is appointed by the Shareholders' General Meeting, for a three years mandate, composed of three members and one or two substitutes, responsible for the supervision of the company and the appointment of the Statutory Auditor. In December 31, 2014, the Supervisory Board was composed by the following members:

• Pedro Nuno Fernandes de Sá Pessanha da Costa President
• André Seabra Ferreira Pinto Member
• José Guilherme Barros Silva Member
• Luis Filipe Alves Baldaque de Marinho Fernandes Substitute

The Supervisory Board members were appointed for the first time in April 2014 for the period 2014/2016.

32. Details of the members of the Supervisory Board which are considered to be independent pursuant to Article 414/5 of Portuguese Companies Act

As a collective board, the assessment of independence of the Supervisory Board is made to all those who compose it, given the application of the number 6 of Article 414 of the Portuguese Companies Act, considering independence in accordance with the definition that is given by number 5 of article 414 and incompatibility according to definition of the number 1 of article 414-A, both of the Portuguese Companies Act. All members that compose the Supervisory Board comply the rules of incompatibility and independence identified above.

33. Professional qualifications of each member of the Supervisory Board and other important curricular information

As regards the skills to exercise these functions, all members have appropriate skills to fulfil their duties and the chairman is adequately supported by the other members of the Supervisory Board. Appendix I presents the qualifications and professional activities of the members of the Supervisory Board.

b) Functioning

34. Availability and place where the rules on the functioning of the Supervisory Board may be viewed

The Supervisory Board regulation is available on the website of Altri (www.altri.pt) (tab "About Altri", section "Governance").

35. Number of meetings held and the attendance report for each member of the Supervisory Board

During 2014 the Supervisory Board of the Company met 4 times, with presence of all its members, and the corresponding minutes are recorded in the minutes' book of the Supervisory Board.

36. The availability of each member of the Supervisory Board indicating the positions held simultaneously in other companies inside and outside the group, and other relevant activities undertaken by members of this Board throughout the financial year

The members of Supervisory Board showed availability in the exercise of their duties attending and participating in all meetings of the Board. The information regarding other undertaken positions, qualifications and professional experience of the Supervisory Board members are detailed on Appendix I.

c) Powers and duties

37. Description of the procedures and criteria applicable to the supervisory body for the purposes of hiring additional services from the external auditor.

The Supervisory Board analyses and approves the nature of other additional services to be performed by the External Auditor, evaluating if the independence is ensured.

The Supervisory Board, exercising its functions, carries out an annual evaluation of independence of the External Auditor, particularly regarding non-audit services. Additionally, the Supervisory Board receives, annually, the declaration of independence of the External Auditor where are described the services rendered by it and by other entities of the same network, their fees, possible threats to their independence and safeguard measures. All the potentials threats to the independence of the External Auditor are evaluated and discussed with him as well as the respective safeguard measures.

The Board of Directors, at the request of the projects assigned to the group companies' auditors, ensures, before its adjudication, that no services are contracted to them or to their network that, in accordance with the recommendation of the European Commission no. C (2002) 1873 of 16 May, would threaten their independence.

38. Other duties of the supervisory board

The supervision of the Company is assigned to the Supervisory Board, as provided by article no. 420 of the Portuguese Companies Act.

The Supervisory Board also represents the Company regarding the External Auditor and Statutory Auditor and is responsible for proposing the provider for these services, their remuneration and to ensure that they are guaranteed, within the group, suitable conditions for them to provide their services. The Supervisory Board is the first recipient of the reports issued by the External Auditor as well as the group's representative in the relationship with that entity.

The Supervisory Board is responsible for preparing an annual report on its activity and for giving an opinion on the annual report and proposals presented by the Board of Directors as well as monitor the effectiveness of risk management and internal control.

The Board of Directors, together with the Supervisory Board, regularly reviews and oversees the preparation and disclosure of financial information in order to prevent access, improper and untimely of third parties to relevant information.

Additionally, the Supervisory Board issues an opinion on transactions between the directors of Altri and the company or between Altri and companies in a group or domain relationship with the one in which the interested part is director, regardless of the amount, under article 397 of Portuguese Companies Act.

The External Auditor, within the annual audit, analyses the functioning of the internal control mechanisms and reports deficiencies identified; verifies that the key elements of internal control systems and risk management implemented in the company in relation to the process of financial reporting are presented and disclosed in the annual Corporate Governance Report and issues a legal certification of accounts and audit report, which certifies whether that report disclosed about the structure and practices of corporate governance includes the elements referred to in Article 245 - A of Securities Code.

During 2014, the Statutory Auditor monitored the development of company's activity and carried out the tests and inspections deemed necessary to the review and legal certification of the accounts, in interaction with the Supervisory Board and with full cooperation of the Board of Directors.

In addition, the Statutory Auditor pronounced itself on the work it developed in 2014 in its annual audit report subject to the assessment of the Shareholders' Annual General Meeting.

IV. STATUTORY AUDITOR

39. Details of the statutory auditor and the partner that represents same

The Statutory Auditor of the Company for the period 2014/2016 is Deloitte & Associados, SROC, S.A., represented by Jorge Manuel Araújo de Beja Neves or Miguel Nuno Machado Canavarro Fontes since April 2014.

40. Number of years that the statutory auditor consecutively carries out duties with the company and/or group

Deloitte & Associados, SROC, S.A., is responsible for the functions of the Statutory Auditor since 2005 and was reelected for another mandate on the proposal of the Supervisory Board, in the General Meeting of April 24, 2014.

The proposal submitted by the Supervisory Board for the election of Deloitte & Associados, SROC, SA for a new mandate was supported by a previous study in which we considered the auditor's independence and the advantages and disadvantages of maintaining and presented such a proposal based on the conviction that the quality of the work done by Deloitte & Associados, SROC, SA and experience in the sector where Altri acts, overlap the possible drawbacks in maintenance. It was surely conviction of that board that maintaining Deloitte & Associados, SROC, SA in functions would not endanger the integrity and the independence with which those functions would be performed in the Company.

41. Description of other services that the statutory auditor provides to the company

The Statutory Auditor is simultaneous the External Auditor of Company as detailed in sections below.

V. EXTERNAL AUDITOR

42. Details of the external auditor appointed in accordance with Article 8 and the partner that represents same in carrying out these duties, and the respective registration number at the CMVM

The External Auditor of Company is Deloitte & Associados, SROC, S.A. appointed for the effect of article 8 of CVM registered under the number 231 in the Portuguese Securities Regulator (CMVM), represented by Jorge Manuel Araújo de Beja Neves or Miguel Nuno Machado Canavarro Fontes.

43. State the number of years that the external auditor and respective partner that represents same in carrying out these duties consecutively carries out duties with the company and/or group

The External Auditor was appointed for the first time in 2005 having accomplished three mandates, and his representative has been changed in April 2014.

The proposal submitted by the Supervisory Board for the election of Deloitte & Associados, SROC, SA for a new mandate was supported by a previous study in which it was considered the auditor's independence and the advantages and disadvantages of maintaining and presented such a proposal based on the conviction that the quality of the work done by Deloitte & Associados, SROC, SA and experience in the sector where Altri acts, overlap the possible drawbacks in their maintenance. It was surely conviction of that body that maintaining Deloitte & Associados, SROC, SA in functions would not damage the integrity and the independence with which they would still exercise in the Company.

44. Rotation policy and schedule of the external auditor and the respective partner that represents said auditor in carrying out such duties

The policy adopted by the Supervisory Board on this matter has been, previously to the presentation of proposals for the election of the External Auditor for a new term, to carry out a thorough evaluation of the advantages and drawbacks of the maintenance functions of that auditor, and not just adopt the principle of rotation at the end of three terms, if from that evaluation results the conviction that keeping the same auditor beyond that period does not endanger the required and necessary independence of the Auditor.

Regardless of the outcome of this evaluation, a new Partner representing the External Auditor was designated in 2014.

45. Details of the Board responsible for assessing the external auditor and the regular intervals when said assessment is carried out

The Supervisory Board, in the fulfillment of its functions, annually assesses the External Auditor independence. Additionally, the Supervisory Board promotes whenever necessary or appropriate in light of developments in the Company's business or the evolution of the market, a reflection on the adequacy of the External Auditor to carry out its duties.

46. Details of services, other than auditing, carried out by the external auditor for the company and/or companies in a control relationship and an indication of the internal procedures for approving the recruitment of such services and a statement on the reasons for said recruitment

Other services rendered by External Auditor in 2014 include, essentially, services connected with validation of applications to governmental subsidies, with the review and monitoring of mergers occurred in 2014 and with the revision of tax files.

The other services are provided by different teams of those involved in the audit process, so it enhances auditor's independence.

The Supervisory Board has reviewed and approved the scope of those services and concluded that they did not threaten the independence of the External Auditor. In this particular aspect, the hiring of Deloitte & Associados, SROC, S.A. proved to be the most appropriate due to its solid experience and expertise in the field of taxation and fiscal incentives. Moreover, the intervention of Deloitte & Associados, SROC, S.A. is often combined with technicians and experts independent from its network, namely consultants.

In 2014, the fees charged by Deloitte & Associados, SROC, S.A. to Altri's Group represented less than 1% of the total annual turnover of Deloitte & Associados, SROC, S.A. in Portugal. The quality system of the External Auditor controls and monitors the potential risk of loss of independence or conflicts of interest with Altri.

47. Details of the annual remuneration paid by the company and/or legal entities in a control or group relationship to the auditor and other natural or legal persons pertaining to the same network and the percentage breakdown relating to the following services:

Company		2014	%	2013	%
	Audit and statutory audit (€)	1,000	0.2%	1,000	0.2%
	Other assurance services (€)	5,000	0.8%	‐	0.0%
	Tax consulting services (€)	30,500	4.8%	‐	0.0%
	Other services (€)	‐	0.0%	‐	0.0%
Group companies
	Audit and statutory audit (€)	260,258	41.1%	266,147	43.4%
	Other assurance services (€)	139,234	22.0%	163,493	26.7%
	Tax consulting services (€)	31,968	5.0%	27,075	4.4%
	Other services (€)	165,480	26.1%	155,467	25.4%
Total
	Audit and statutory audit (€)	261,258	41.2%	267,147	43.6%
	Other assurance services (€)	144,234	22.8%	163,493	26.7%
	Subtotal assurance services	405,492	64.0%	430,640	70.2%
	Tax consulting services (€)	62,468	9.9%	27,075	4.4%
	Other services (€)	165,480	26.1%	155,467	25.4%
		633,440	100.0%	613,182	100.00%

C. INTERNAL ORGANISATION

I. ARTICLES OF ASSOCIATION

48. Rules governing amendment to the articles of association

The statutory amendments follow the applicable legal terms, including the Portuguese Companies Act, which require a two-thirds majority of the issued votes for the adoption of such resolution.

II. REPORTING OF IRREGULARITIES

49. Reporting means and policy on the reporting of irregularities in the company

Altri has a code of ethics and conduct that governs the ethical principles common to the whole Group and that apply to all relationships established between group companies and their stakeholders and has the main goal of driving, through common ethical principles, personal and professional behaviors of the group workers regardless their function or position.

The Code of Ethics and Conduct was widely disseminated to all employees and partners and is published on the Company's website (www.altri.pt) (tab "About Altri", "Governance" section).

This code is applied to all Group employees, including the management boards of all group companies, as well as to – with the required adaptions – its external auditors, clients, suppliers and any other service provider, regardless being occasional or permanent services.

All of Altri employees should guide their conduct by the following principles:

• Strict compliance with the law, regulations, recommendations and statutory provisions and the internal rules, policies and guidelines of Altri;
• Integrity, ethics, transparency and honesty in decision-making;
• Cooperation and professionalism in relationships with partners and local communities in which each company is inserted;
• Conducting business within a framework of loyalty, rigorously and good faith in meeting the objectives of Altri;
• High consciousness of the necessity for confidential treatment of all information that is produced or to which it has access in the performance of functions;
• Diligent and thrifty treatment of all work tools or assets of the companies, ensuring their protection and its good condition refraining from any use for their own benefit.

The Supervisory Board is the body which should be addressed any reports of irregularities, by any employee, partner, supplier or any other stakeholder.

The Altri has a specific mechanism for the reporting of irregularities to substantiate ethical violations or cool with significant impact in the areas of accounting, in the fight against corruption, banking and financial crime (Whistleblowing).

When the Board of Directors receives a request for clarification related to the whistleblowing system, forwards it immediately to the Supervisory Board.

The reporting to the Audit Committee of any irregularity or error indication should be made by letter in a sealed envelope with the reference to its confidentiality, to the following address: Rua General Norton de Matos, number 68, R / C, 4100 424 Porto. Anonymous reports are accepted only exceptionally.

III. INTERNAL CONTROL AND RISK MANAGEMENT

50. Individuals, boards or committees responsible for the internal audit and/or implementation of the internal control systems

Risk management, as a key issue of the principles of good corporate governance is an area considered critical in Altri, which promotes permanent awareness of all employees, at all levels of the organization, putting in them such responsibility in all processes of decision-making.

Altri has no autonomous internal audit services and compliance. Risk management is ensured by the several Altri's operating units based on a preliminary identification and prioritization of critical risks, by developing risk management strategies in order to implement control procedures considered appropriate to reduce the risk to an acceptable level.

Altri has been monitoring the appropriation of this risk management model that has proved to be entirely appropriate given the organizational structure of the Company.

51. Detail of hierarchical and/or functional dependency in relation to other boards or committees of the company

The Supervisory Board is responsible for supervise action taken related to the evaluation of the operation of risk management mechanisms. It is therefore responsibility of this corporate body the supervision of the actions carried out the Company in these matters.

The External Auditor, in the exercise of their functions, checks the adequacy of mechanisms and procedures involved ensuring the reporting of its conclusions to the Supervisory Board.

The Board of Directors is responsible for monitoring these mechanisms and procedures.

52. Other functional areas responsible for risk control

The Board of Directors is the body responsible for setting the overall strategic guidelines of the group, and is duly supported by the subsidiary management teams, ensuring not only the continuous monitoring, and the reporting to the Board of Directors of Altri, of their situations detected, to ensure continuous and effective risk controls.

Risk management is ensured by various Altri's operating units. The methodology of risk management includes several steps:

• First, internal and external risks that may materially affect the Groups' strategic objectives are identified and prioritized;
• The operational management of the various business units identify risk factors and events that may affect the operations and activities of Altri, as well as any procedures and control mechanisms;
• Additionally, the impact and the probability of occurrence of each risk factor are weighted and according to the exposure level, the need to respond to the risk is evaluated; and
• The risk mitigation actions are monitored and the level of exposure to critical factors is constantly monitored.

The Board of Directors decides the level of exposure assumed by the group in its various activities and, without prejudice the delegation of tasks and responsibilities, sets overall limits of risk and ensures that policies and procedures for risk management are followed.

In the monitoring of the risk management process the Board of Directors as a board responsible for Altri's strategy, has the following objectives and responsibilities:

• Be aware of the most significant risks affecting the group;
• Ensure the existence within the Group, of appropriate levels of knowledge of the risks affecting the operations and how to manage them;
• Ensure the disclosure of the risk management strategy at all levels of hierarchy;
• Ensure that the Group is able to minimize the likelihood and impact of risks in the business; and
• Ensure that the risk management process is adequate and that it maintains a close monitoring of those risks with higher probability of occurrence and higher impact in the group´s operations.

The subsidiaries manage their own risks, within the established criteria and delegations set by the board of Directors.

53. Details and description of the major economic, financial and legal risks to which the company is exposed in pursuing its business activity

The Board of Directors considers that the Group is exposed to the normal risks associated with its operations, namely in its operating units. Therefore, the main risks considered by the Group are:

Credit risk

Like any activity involving a commercial component, the Group's exposure to credit risk is attributable mainly to the accounts receivable resulting from the Group's operating activity.

This risk is monitored and controlled through a system for collecting financial and qualitative information, provided by entities that provide credible risk information, which allows customers to evaluate the feasibility of the fulfilment of their obligations, in order to minimize the risk associated with granting credit.

Credit risk evaluation is done in a regular basis, by analysing the current economic conjuncture conditions, in particular the credit situation of each company and, when necessary, adopting the corrective measures.

Credit risk is mitigated by the management of risk concentration of customer and by careful selection of counterparties and the credit insurance contracts with specialized institutions and covering a significant portion of credit granted.

Market risk

Interest rate risk

Considering the Group's debt, possible variations on the interest rate may have an unwanted impact on the results. Therefore, the Group adopts a balanced position between the cost of the debt and its exposure to the interest rate variability. When the reasonable risk is exceeded, the Group engages interest rate swaps in order to reduce its exposure to risk and to restrict the potential volatility of results.

The Group's exposure to interest rates arises primarily from long-term loans which consist mostly of debt indexed to Euribor.

Exchange rate risk

Due to the great volume of transactions with non-resident entities and with different currencies, exchange rate instability might have a relevant impact on the Group's performance. Therefore, whenever the Group considers necessary to reduce the volatility of its results, the position is covered by contracting derivatives to reduce the volatility of its results.

Commodities price variability risk

By developing its activity in a sector of commodities (paper pulp), the Group is particularly exposed to its price fluctuations, with the correspondent impacts in their results. However, being in these sectors allows the access to paper pulp price fluctuations hedging contracts in amounts considered adequate for the foreseen operations, reducing the volatility of group's results.

Liquidity risk

Liquidity risk can occur if the sources of financing, such as operating cash flows, cash flows of disinvestment, credit lines and cash flows from financing do not meet the financing needs, such as outputs cash for operating and financing activities, investment, shareholders returns and debt repayment.

The main objective of the liquidity risk management policy is to ensure that the Group is available at all times, the financial resources needed to meet its responsibilities and pursue the strategies outlined by honouring all commitments made to third parties when they become due, through proper management of the maturity of funding.

The Group adopts an active strategy of refinancing focused on maintaining a high level of immediately available funds to meet short term needs and the extension or maintenance of debt maturity in accordance with the forecasted cash flows and the capacity of leveraging of the balance sheet.

Legal, Fiscal and Regulation risks

Altri, as well as your business, comprises permanently, legal, tax and regulatory advices, which works in conjunction with the business areas, ensuring preventively to protect the group's interests in strict compliance with the legal provisions applicable to the business areas of the Company.

This advice is also supported at national and international level by external service providers which are contracted from firms with established reputation and in accordance with highest standards of competence, rigor and professionalism.

However, Altri and its subsidiaries may be affected by legal changes both in Portugal and in the European Union or other countries where it develops its activities. Altri does not control, of course, such changes, if any, may have an adverse impact on the group's business and may therefore impair or prevent the achievement of strategic objectives.

The Group's attitude is of permanent cooperation with the authorities regarding the respect and observance of the law.

Forest risk

Altri, through its subsidiary Altri Florestal, has the management of a forest asset amounting to 84,000 hectares, of which 79% is eucalyptus. The forest is certified by FSC®2 (Forest Stewardship Council®) and PEFC (Programme for the Endorsement of Forest Certification), entities that establish the principles and criteria for which is evaluated the sustainability of the forest's management in economic, environmental and social terms.

In this context, all forestry activity is directed towards the optimization of available resources while preserving the environmental stability and ecological values present in its assets and ensuring its development.

The risks associated with any forestry activity are also present in Altri Florestal management. Forest fires, pests and diseases that can occur in forests spread through the country are the biggest risks threatening this sector. These threats, if they occur, depending on their intensity, affect the normal function of the forest's exploration and the production's efficiency.

In order to prevent and reduce the impact of forest fires, Altri Florestal participates, together with Portucel Soporcel group, in a company called AFOCELCA that has the goal of providing, coordinating and managing the resources available for fire-fighting. At the same time, large investments are made to clean forest areas in order to reduce the risk of spread of the fires as well as reduce losses.

Regarding pests and diseases, its arising can reduce significantly the growth of the forest productivity causing irreversible damages. For combating these problems integrated fight procedures were established by releasing specific parasitoids from Australia and through the use of phytopharmaceuticals products to control populations of harmful insects and reduce the negative effects of its presence. On the other hand, in the most affected areas, Altri Florestal is using genetic material more suitable for new plantations which, by its characteristics, allows more resistance to these pests and diseases.

² FSC-C004615

54. Description of the procedure for identification, assessment, monitoring, control and risk management

As mentioned in the paragraph 52, the Board of Directors is the body responsible for setting the overall strategic guidelines of the group, and is duly supported by the subsidiary management teams, ensuring not only the continuous monitoring, and the reporting to the Board of Directors of Altri, of their situations detected, to ensure continuous and effective risk controls.

The process of identification and evaluation, monitoring, control and risk management in Altri works as follows:

The risks that the group faces in the normal course of its business are identified. For all identified risks, is measured the impact on financial performance and the value of the group. The risk value is compared with the costs of hedging instruments, if available and, consequently, the development of identified risks and the hedging instruments is monitored, which follows, more or less, in compliance with the following methodology:

• First, internal and external risks that may materially affect the Groups' strategic objectives are identified and prioritized;
• The operational management of the various business units identify risk factors and events that may affect the operations and activities of Altri, as well as any procedures and control mechanisms;
• Additionally, the impact and the probability of occurrence of each risk factor are weighted and according to the exposure level, the need to respond to the risk is evaluated; and
• The risk mitigation actions are monitored and the level of exposure to critical factors is constantly monitored.

The Company has implemented additional risk management strategies that aim to ensure, essentially, that the systems and control procedures and the established policies allow answering expectations of management bodies, shareholders and other stakeholders.

Some of these strategies are the following:

• Systems and control procedures and policies are established in accordance with all applicable laws and regulations;
• The financial and operational information is complete, reliable, safe and reported on a regular and timely manner;
• Altri resources are used efficiently and rationally; and
• The shareholder value is maximized and operational management takes the necessary measures to correct problems reported.

55. Core details on the internal control and risk management systems implemented in the company regarding the procedure for reporting financial information

In what refers to risk control in the process of disclosure of financial information, a form of control is the involvement of a very limited number of Altri employees in the process.

All involved in financial analysis are considered as having access to privileged information and is especially knowledgeable about the content of their obligations as well as the sanctions resulting from the misuse of such information.

The internal rules for the disclosure of financial information are intended to securing their timing and prevent the asymmetry of the market.

The system of internal control in areas of accounting and preparation and disclosure of financial information is based on the following key elements:

The use of accounting principles, detailed throughout the notes to financial statements, is one of the bases of the control system;

• Plans, procedures and records of the Company and its subsidiaries provide reasonable assurance that transactions are recorded only properly authorized and that such transactions are recorded in accordance with generally accepted accounting principles;
• Financial information is analysed in a systematic and regular basis for the management of operational units, ensuring a permanent monitoring and control its budget;
• During the process of preparing and reviewing financial information, is previously established a timetable for closure of accounts and shared with the different areas involved, and all documents are reviewed in depth;
• At the level of individual financial statements of the various group companies, the accounting records and preparing financial statements are provided by administrative and accounting services. The financial statements are prepared by official chartered of accounts and reviewed by the financial management of each subsidiary;
• The consolidated financial statements are prepared quarterly by the consolidation team. This process is an additional element of monitoring the reliability of financial reporting, particularly by ensuring the uniform application of accounting principles and procedures for cut-off of operations as well as check balances and transactions between group companies;
• The consolidated financial statements are prepared under the supervision of the CFO. The annual report is sent for review and approval by the Board of Directors. After the approval, the documents are sent to the External Auditor, which issues the Statutory Audit and Auditor's Report; and
• The process of preparing the financial information and consolidated directors' report is monitored by the Supervisory Board and by the Board of Directors. Each quarter, these corporate boards meet and analyse the individual and consolidated financial statements of the Company.

As regards to risk factors that could materially affect the accounting and financial reporting, we should highlight the use of accounting estimates that are based on the best available information during the preparation of financial statements as well as the knowledge and experience of past or present events. We also stress the balances and transactions with related parties: Altri's Group balances and transactions with related parties relate essentially to the operational running of the group companies as well as to granting and obtaining loans at market rates.

The Board of Directors, together with the Supervisory Board, regularly review and monitor the preparation and disclosure of financial information in order to prevent access, improper and untimely, of other persons to relevant information.

IV. Investor Assistance

56. Department responsible for investor assistance, composition, functions, the information made available by said department and contact details

The Company has an investor assistance department which includes the group's market liaison officer and the investor relations.

The contact for investors to obtain information is as follows:

Rua do General Norton de Matos, 68 – r/c 4050-424 Porto Tel: + 351 22 834 65 02 Fax: + 351 22 834 65 03 Email: sede@altri.pt

Altri provides financial information relating to its individual and consolidated operations, as well as that of its subsidiary companies, through its official internet website (www.altri.pt). This website is also used by the Altri to provide information on press releases, previously disclosed in the Information Disclosure System of the CMVM, as well as any relevant facts occurring in the life of the Company. This page also includes Altri Group's reports and accounts of the latest years. The majority of the information is available in the site both in Portuguese and in English.

57. Market Liaison Officer

The functions of Group's market liaison officer are performed by Alfredo Luís Portocarrero Teixeira and the investor relations functions are performed by Ricardo Mendes Ferreira.

58. Data on the extent and deadline for replying to the requests for information received throughout the year or pending from preceding years

Whenever necessary, the market liaison officer ensures that all relevant information regarding events, facts considered as relevant, disclosure of quarterly results and answers to any requests for clarification by the investors or the general public on public financial information is provided. All information requested by investors are analysed and provided within a maximum of five days.

V. WEBSITE

59. Address(es)

Altri's has available a web page with information about the Company and the Group. The address is: www.altri.pt.

60. Place where information on the firm, public company status, headquarters and other details referred to in Article 171 of the Commercial Companies Code is available

www.altri.pt \ investors \ company profile

61. Place where the articles of association and regulations on the functioning of the boards and/or committees are available

www.altri.pt \ about altri \ articles of association www.altri.pt \ about altri \ governance

62. Place where information is available on the names of the corporate boards' members, the Market Liaison Officer, the Investor Assistance Office or comparable structure, respective functions and contact details

www.altri.pt \ about altri \ management team www.altri.pt \ investors \ investors assistance

63. Place where the documents are available and relate to financial accounts reporting, which should be accessible for at least five years and the half-yearly calendar on company events that is published at the beginning of every six months, including, inter alia, general meetings, disclosure of annual, half-yearly and where applicable, quarterly financial statements

www.altri.pt \ investors \ reports www.altri.pt \ investors \ financial calendar

64. Place where the notice convening the general meeting and all the preparatory and subsequent information related thereto is disclosed

www.altri.pt \ investors \ general meetings

65. Place where the historical archive on the resolutions passed at the company's General Meetings, share capital and voting results relating to the preceding three years are available

www.altri.pt \ investors \ general meetings

D. REMUNERATION

I. POWER TO ESTABLISH

66. Details of the powers for establishing the remuneration of corporate boards, members of the executive committee or chief executive and directors of the company

The Remuneration Committee is responsible for approving the remuneration of the Board of Directors and other corporate bodies representing the shareholders, in accordance with the remuneration policy approved by the shareholders at the General Meeting.

II. REMUNERATION COMMITTEE

67. Composition of the remuneration committee, including details of individuals or legal persons recruited to provide services to said committee and a statement on the independence of each member and advisor

Altri currently has set a Remuneration Committee, elected by the general meeting of shareholders for a mandate of three years, starting in 2014 and ending in 2016, and whose composition is as follows:

• João da Silva Natária President
• José Francisco Pais da Costa Leite Member
• Pedro Nuno Fernandes de Sá Pessanha da Costa Member

All members of the Remuneration Committee are independent from the members of the Board of Directors. Additionally, in 2014 no persons or entities were hired to assist the members of the Remuneration Committee.

68. Knowledge and experience in remuneration policy issues by members of the Remuneration Committee

The experience and the professional qualifications of the Remuneration Committee members are in their curricula available on the Company website, www.altri.pt, tab "Investors".

Altri believes that the experience and professional careers of the members of the Remuneration Committee allow them to perform their duties accurately and effectively. In particular, João da Silva Natária has extensive experience and specific knowledge in matters of remuneration policy. Additionally, and whenever necessary, this committee uses specialized resources, internal or external, to support its decisions.

III. Remuneration structure

69. Description of the remuneration policy of the Board of Directors and Supervisory Boards as set out in Article 2 of Law No. 28/2009 of 19 June

As provided in Law 28/2009, of 19 June, a statement on the remuneration policy of the Management and Supervisory boards is submitted annually for appreciation by the General Shareholders Meeting.

The policy on remuneration and compensation of the corporate boards of Altri, approved at the General Meeting held on 24 April 2014, respects, the following principles:

Board of Directors:

In order to establish the value of individual remuneration of each director it will be taken into account:

• The functions performed in the Company and in its subsidiaries
• The responsibility and the added value by individual performance
• Knowledge and experience accumulated on the job
• The economic situation of the Group; and
• The remuneration in the same sector companies and other companies listed on NYSE Euronext Lisbon

The total fixed remuneration of the Board of Directors, included the remuneration that subsidiaries pay to members of Board of Directors cannot exceed 2 million Euro per year.

• 1. Executive directors
• Fixed component, paid monthly;
• Medium term variable component: Intended to align more strongly the interests of executive directors with those of shareholders and will be calculated covering two mandates period, 2011-2013 and 2014- 2016, based on:
  • Total shareholder return (shares valorisation plus dividend distributed dividend)
  • Sum of the net consolidated results of six years (2011 to 2016)
  • Company's business development

The total amount of the variable component cannot exceed 50% of fixed remuneration earned during the period of 6 years.

2. Non-executive directors

The individual remuneration of any non-executive director cannot exceed 120,000 Euro per year, being exclusively fixed.

SUPERVISORY BOARD:

The remuneration of Members of the Supervisory Board will be based on yearly fixed values at levels considered adequate for similar functions.

GENERAL SHAREHOLDERS MEETING:

The remuneration of the Board of the General Shareholders Meeting will be exclusively fixed and will follow market practices.

STATUTORY AUDITOR:

The Statutory Auditor will have a fixed remuneration based on performance of his duties and in accordance with the market price, under the supervision of the Supervisory Board.

COMPENSATION FOR TERMINATION OF FUNCTIONS BEFORE OR ON TERM OF MANDATE:

The remuneration policy maintains the principle of not covering the grating of any compensation to directors or other governing boards, concerning their termination of functions, either early or at the scheduled end of their terms of office, subject to compliance with the legal provisions in force.

It should be added in this respect that in 2014 there was no place to any compensation to former directors.

SCOPE OF PRINCIPLES:

The remuneration policy described above is applicable to Altri and to all companies directly or indirectly controlled by it and the amounts and limits of remuneration, set by it to the remunerations of the Board of Directors, cover the totality of remunerations paid by Altri and by the companies directly or indirectly controlled by it to its members of the Board of directors.

70. Information on how remuneration is structured so as to enable the aligning of the interests of the members of the board of directors with the company's long-term interests and how it is based on the performance assessment and how it discourages excessive risk taking

The remuneration policy for executive directors aims to ensure a proper and thorough compensation for the performance and contribution of each director for the success of the organization, aligning the interests of the executive directors with those of the shareholders and of the company. Additionally, the remuneration policy provides for a variable component with deferred payment aiming to more strongly align the interests of the executive directors with those of the shareholders and the long-term interests of the Company.

The proposal for remuneration of executive directors are drawn up taking into account the functions performed in Altri, SGPS, S.A. and in its subsidiaries, the responsibility and added value by individual performance, the knowledge and the experience accumulated on the job, the economic situation of the company, the remuneration paid by other companies from the same sector and other companies listed on NYSE Euronext Lisbon. Regarding the latter point, the Remuneration Committee takes into account all national companies of equivalent size, particularly listed on NYSE Euronext Lisbon, and also companies in international markets with characteristics similar to Altri.

71. Reference, where applicable, to there being a variable remuneration component and information on any impact of the performance appraisal on this component

In the General Shareholders Meeting held in 24 April 2014, it was approved the remuneration policy as detailed in paragraph 69 above, which includes a variable component depending on performance during the period between 2011 and 2016.

No mechanisms to prevent executive directors from having employment contracts that question the grounds of the variable remuneration are implemented. However, the Remuneration Committee takes into account these factors in the criteria for determining the variable remuneration. The Company did not celebrate any agreements with members of the Board of Directors that have the effect of mitigating the risk associated to variability of the remuneration or has become aware of any identical contracts with third parties.

72. The deferred payment of the remuneration's variable component and specify the relevant deferral period

There is currently no variable compensation due which payment was deferred in time.

73. The criteria whereon the allocation of variable remuneration on shares is based

Altri has not in place nor intends to have any form of compensation that may include shares or any other equity based compensation system.

74. The criteria whereon the allocation of variable remuneration on options is based

Altri does not have in place any form of compensation that includes stock options.

75. The key factors and grounds for any annual bonus scheme and any additional non-financial benefits

Altri hasn't any annual bonus scheme or any other non-financial benefits.

76. Key characteristics of the supplementary pensions or early retirement schemes for directors and state date when said schemes were approved at the general meeting, on an individual basis

Altri has no supplementary pension or early retirement schemes for corporate boards or key staff. The director Laurentina Martins benefits of a plan assigned before her appointment to the Board of Directors because, at the grant date, she was a worker of the subsidiary Caima - Indústria de Celulose, SA. The main features and information about this plan are detailed in note 30 a) of the notes to the consolidated financial statements at 31 December 2014.

On 2014 no contribution to the fund as made. As of that date the present value of the payable pensions amounts to 417,156 Euro.

Additionally during 2014 this director received Euro 33,705 from the fund, as retirement pension for age limit.

IV. REMUNERATION DISCLOSURE

77. Details on the amount relating to the annual remuneration paid as a whole and individually to members of the company's board of directors, including fixed and variable remuneration and as regards the latter, reference to the different components that gave rise to same

The remunerations received by the members of the Board of Directors were fully paid by the Group's subsidiaries were they are also directors and there are no directors paid directly by Altri SGPS.

78. Any amounts paid, for any reason whatsoever, by other companies in a control or group relationship, or are subject to a common control

The remuneration received by the Board of Directors of Altri during 2014, in the exercise of their functions, include only fixed remuneration and amounted to Euro 1,412,195 allocated as follows: Paulo Fernandes – Euro 390,850; João Borges de Oliveira – Euro 390,245; Domingos Matos – Euro 224,700; Pedro Morges de Oliveira - Euro 224,700; Pedro Mendonça – Euro 70,700; Laurentina Martins - Euro 59,500 and Ana Mendonça - Euro 51,500.

79. Remuneration paid in the form of profit sharing and/or bonus payments and the reasons for said bonuses or profit sharing being awarded

During the year there weren't any remuneration in the form of profit sharing or bonuses.

80. Compensation paid or owed to former executive directors concerning contract termination during the financial year

During the year, no amounts relating to compensation to directors whose functions have ceased have been paid or became due.

81. Details of the annual remuneration paid, as a whole and individually, to the members of the company's supervisory board

The remuneration of the Supervisory Board is composed of a fixed annual amount based on Altri's situation and on the current market practices. In the year ended 31 December 2014, the remuneration of Supervisory Board members amounted to Euro 23,715 distributed as follows: Pedro Pessanha – Euro 11,250; André Pinto – Euro 6,233; José Guilherme Silva – Euro 6,233.

The remuneration of the Statutory Auditor is described in paragraph 47 above.

82. Details of the remuneration in said year of the Chairman of the Presiding Board to the General Meeting

The remuneration of the Chairman of the Board of the General Meeting in the year ended in 31 December 2014 was Euro 5.000.

V. AGREEMENTS WITH REMUNERATION IMPLICATIONS

83. The envisaged contractual restraints for compensation payable for the unfair dismissal of directors and the relevance thereof to the remunerations' variable component

The remuneration policy maintains the principle of not including the grating of any compensation to directors or other governing boards, concerning the termination of their functions, either early or at the scheduled end of their terms of office, subject to the compliance with the legal provisions in force.

84. Reference to the existence and description, with details of the sums involved, of agreements between the company and members of the board of directors and managers, pursuant to Article 248-B/3 of the Securities Code that envisages compensation in the event of resignation or unfair dismissal or termination of employment following a takeover bid

There are no agreements, between the Company and members of the board of directors or other key staff, pursuant to paragraph 3 of Article 248-B of CVM, which provide compensations in case of resignation, unfair dismissal or termination of employment contract following a takeover bid. There aren't also planned agreements with directors to ensure any compensation in case of non-renewal of their terms of office.

VI. Share-Allocation and/or Stock Option Plans

85. Details of the plan and the number of persons included therein

Altri has no plan to grant shares or stock options to the Board of Directors or to its employees.

86. Characteristics of the plan

Altri does not have any plan to grant shares or stock options.

87. Stock option plans for the company employees and staff

There are no stock options granted for the acquisition of shares which benefit company employees and staff.

88. Control mechanisms for a possible employee-shareholder system inasmuch as the voting rights are not directly exercised by said employees

Not applicable as explained above.

E. RELATED PARTY TRANSACTIONS

I. CONTROL MECHANISMS AND PROCEDURES

89. Mechanisms implemented by the Company for the purpose of controlling transactions with related parties

Currently, there are no established procedures or criteria for defining the relevant significance level of business between the Company and holders of qualifying holdings, or entities in any relationship or group with those shareholders, from which the intervention of the supervisory board is required.

However, the Company conducts its action with principles of rigor and transparency, with scrupulous observance of the competitive market rules.

90. Details of transactions that were subject to control in the referred year

There weren't performed businesses or significant transactions between the Company and members of its governing boards (both management and supervision), the holders of qualified shareholdings or companies in a control or group, except those that are part of the current activity of the group and which were carried out under normal market conditions for similar transactions.

There weren't performed any business or transactions with members of the Supervisory Board.

The non-audit services provided by the Statutory Auditor were approved by the Supervisory Board and are detailed in paragraph 47 above.

Transactions with group companies are not material and were made under normal market conditions and are part of the current activity of the Company and therefore are not subject to separate disclosure.

91. A description of the procedures and criteria applicable to the supervisory body when same provides preliminary assessment of the business deals to be carried out between the company and the holders of qualifying holdings or entity-relationships with the former

Transactions with Altri directors or companies that are in a group or control relationship with the one in which the intervener is a director, regardless of the amount, are subject to the prior authorization of the Board of Directors with a favorable opinion the Supervisory Board pursuant to Article 397 of the Portuguese Companies Act. In 2014 it was not necessary to the Supervisory Board to issue an opinion because no transactions that require the approval of that board occurred.

II. DATA ON BUSINESS DEALS

92. Details of the place where the financial statements including information on business dealings with related parties are available

Information on related parties is disclosed in note 32 of the notes to consolidated financial statements and note 17 of the notes to the individual financial statements of the Company.

PART II - CORPORATE GOVERNANCE ASSESSMENT

1. Details of the Corporate Governance Code implemented

This report provides a description of the governance structure adopted by Altri, as well as the policies and practices that the same are adopted.

The report complies with the standards of Article 245-A of the Portuguese Securities Code and discloses in accordance with the comply or explain principle, the degree of compliance with the CMVM recommendations incorporated in 2013 CMVM Corporate Governance Code.

There are also fulfilled the duties of disclosure required by Law 28/2009 of 19 June, Articles 447 and 448 of the Portuguese Companies Act and CMVM Regulation Nr. 5 / 2008, of 2 October 2008.

All the legal provision referred on this report and the recommendations listed in the Corporate Governance Code of 2013, can be found in www.cmvm.pt.

This report should be read as part of the Annual Management Report and as part of the Individual and Consolidated Financial Statements for the fiscal year 2014.

2. Analysis of compliance with the Corporate Governance Code implemented

Altri encouraged all actions to promote the adoption of best corporate governance practices, basing its policy on high ethical standards and social responsibility.

The Board of Directors of Altri encourages transparent relationships with investors and with the market, and has based its performance by the constant search of value creation, to the promotion of the interests of employees, shareholders and other stakeholders.

In order to comply with the provisions of paragraph o) of number 1 of article 245-A of CVM we hereby present the recommendations proposed in 2013 Corporate Governance Code of CMVM that the company adopted:

RECOMENDATIONS	COMPLIES	REPORT
I. VOTING AND CONTROL OF THE COMPANY
I.1. Companies shall encourage shareholders to attend and vote at general meetings ans shall not set na
excessively large number of shares required for the entitlement of one vote, and implement the means necessary to
exercise the right to vote by mail and electroonically.	Adopted	12, 13 and 14
I.2. Companies shall not adopt mechanisms that hinder the passing of resolutions by shareholders, including fixing a
quorum for resolutions greater than that provided for by law	Adopted	13 and 14
I.3. Comapnies shall not establish mechanisms intended to cause mismatching between the right to receive
dividends or the subscription of new securities and the voting right of each common share, unless duly justified in
terms of long-term interests of shareholders.	Adopted	12 and 13
I.4- The company's articles of association that provide for restriction of the number of votes that may be held or
exercised by a sole shareholder, either individually or in concert with other shareholders, shall also foresee for a
resolution by the generaly assembly (five years intervals), on whether that statutory provision is to be amended or
prevails - without superquorum requirements as to the one legally in force - and that in said resolution, all votes
issued be counted, without applying said restriction.	Adopted	13 and 14
I.5. Measures that require payment or assumption of fees by the company in the event of change of control or
change in the composition of the Board and that whichappear likely to impair the free transfer of shares and free
assessment by shareholders of the performance of Board members, shall not be adopted.	Adopted	2, 4, 5 and 6

II. Corporate Governance Report

RECOMENDATIONS	COMPLIES	REPORT
II. SUPERVISON, MANAGEMENT AND OVERSIGHT II.1 SUPERVISION AND MANAGEMENT
II.1.1. Within the limits established by law, and except for the small size of the company, the board of directors shall
delegate the daily management of the company and said delegated powers shall be identified in the Annual Report
on Corporate Governance.	Adopted	21 and 28
II.1.2.The Board of Directors shall ensure that the company acts in accordance with its objectives and shall not delegate its responsibilities as regards the following:
i) define the strategy and general policies of the company,
ii) define business structure of the group,
iii) decisions considered strategic due to the amount, risk and particular characteristics involved. II.1.3. The General and Supervisory Board, in addition to its supervisory duties	Adopted	21 and 28
supervision, shall take full responsibility at corporate governance level, whereby through the statutory provision or
by equivalent means, shall enshrine the requirement for this body to decide on the strategy and major policies of the
company, the definition of the corporate structure of the group and the decisions that shall be considered strategic
due to the amount or risk involved. This body shall also assess compliance with the strategic plan and the implementation of key policies of the company.	Not Adopted
II.1.4. Except for small-sized companies, the Board of Directors and the General and Supervisory Board,
depending on the model adopted, shall create the necessary committees in order to:
a) Ensure a competent and independent assessment of the performance of the executive directors and its own
overall performance, as well as of other committees; b) Reflect on the system structure and governance practices adopted, verify its efficiency and propose to the
competent bodies, measures to be implemented with a view to their improvement.	Adopted	21, 27, 28 and 29
II.1.5. The Board of Directors or the General and Supervisory Board, depending on the applicable model, should
set goals in terms of risk-taking and create systems for their control to ensure that the risks effectively incurred are consistent with those goals.	Adopted	52, 54 and 55
II.1.6. The Board of Directors shall include a number of non-executive members ensuring effective monitoring,
supervision and assessment of the activity of the remaining members of the board.	Adopted	18
II.1.7. Non-executive members shall include an appropriate number of independent members, taking into account
the adopted governance model, the size of the company, its shareholder structure and the relevant free float. The
independence of the members of the General and Supervisory Board and members of the Audit Committee shall be assessed as per the law in force. The other members of the Board of Directors are considered independent if the
member is not associated with any specific group of interests in the company nor is under any circumstance likely to
affect an exempt analysis or decision, particularly due to:	Not Adopted	18
a. Having been an employee at the company or at a company holding a controlling or group relationship within the
last three years; b. Having, in the past three years, provided services or established commercial relationship with the company or
company with which it is in a control or group relationship, either directly or as a partner, board member, manager
or director of a legal person;
c. Being paid by the company or by a company with which it is in a control or group relationship besides the remuneration arising from the exercise of the functions of a board member;
d. Living with a partner or a spouse, relative or any first degree next of kin and up to and including the third degree
of collateral affinity of board members or natural persons that are direct and indirectly holders of qualifying holdings;
e. Being a qualifying shareholder or representative of a qualifying shareholder. II.1.8. When board members that carry out executive duties are requested by other board members, said shall
provide the information requested, in a timely and appropriate manner to the request.	Adopted	18
II.1.9. The Chair of the Executive Board or of the Executive Committee shall submit, as applicable, to the Chair of
the Board of Directors, the Chair of the Supervisory Board, the Chair of the Audit Committee, the Chair of the
General and Supervisory Board and the Chairman of the Financial Matters Board, the convening notices and minutes of the relevant meetings.	Adopted	23
II.1.10. If the chair of the board of directors carries out executive duties, said body shall appoint, from among its
members, an independent member to ensure the coordination of the work of other non-executive members and the
conditions so that said can make independent and informed decisions or to ensure the existence of an equivalent mechanism for such coordination.	Not Adopted	18
II.2. SUPERVISION II.2.1. Depending on the applicable model, the Chair of the Supervisory Board, the Audit Committee or the Financial
Matters Committee shall be independent in accordance with the applicable legal standard, and have the necessary
skills to carry out their relevant duties.	Adopted	32 and 33
II.2.2. The supervisory body shall be the main representative of the external auditor and the first recipient of the relevant reports, and is responsible, inter alia, for proposing the relevant remuneration and ensuring that the proper
conditions for the provision of services are provided within the company.	Adopted	38
II.2.3. The supervisory board shall assess the external auditor on an annual basis and propose to the competent
body its dismissal or termination of the contract as to the provision of their services when there is a valid basis for
said dismissal. II.2.4. The supervisory board shall assess the functioning of the internal control systems and risk management and	Adopted	45
propose adjustments as may be deemed necessary.	Adopted	38
II.2.5. The Audit Committee, the General and Supervisory Board and the Supervisory Board decide on the work
plans and resources concerning the internal audit services and services that ensure compliance with the rules applicable to the company (compliance services), and should be recipients of reports made by these services at
least when it concerns matters related to accountability, identification or resolution of conflicts of interest and detection
of potential improprieties.	Not aplicable	50 and 51

RECOMENDATIONS COMPLIES REPORT II.3. REMUNERATION SETTING II.3.1.All members of the Remuneration Committee or equivalent should be independent from the executive board members and include at least one member with knowledge and experience in matters of remuneration policy. Adopted 67 and 68 II.3.2. Any natural or legal person that provides or has provided services in the past three years, to any structure under the board of directors, the board of directors of the company itself or who has a current relationship with the company or consultant of the company, shall not be hired to assist the Remuneration Committee in the performance of their duties. This recommendation also applies to any natural or legal person that is related by employment contract or provision of services with the above. Adopted 67 II.3.3. A statement on the remuneration policy of the management and supervisory bodies referred to in Article 2 of Law No. 28/2009 of 19 June, shall also contain the following: a) Identification and details of the criteria for determining the remuneration paid to the members of the governing bodies ; b) Information regarding the maximum potential, in individual terms, and the maximum potential, in aggregate form, to be paid to members of corporate bodies, and identify the circumstances whereby these maximum amounts may be payable; d) Information regarding the enforceability or unenforceability of payments for the dismissal or termination of appointment of board members. Adopted 69 II.3.4. Approval of plans for the allotment of shares and/or options to acquire shares or based on share price variation to board members shall be submitted to the General Meeting. The proposal shall contain all the necessary information in order to correctly assess said plan. Not aplicable 73 and 74 II.3.5. Approval of any retirement benefit scheme established for members of corporate members shall be submitted to the General Meeting. The proposal shall contain all the necessary information in order to correctly assess said system. Not aplicable 76 III. REMUNERATION III.1. The remuneration of the executive members of the board shall be based on actual performance and shall discourage taking on excessive risk-taking. Adopted 70 III.2. The remuneration of non-executive board members and the remuneration of the members of the supervisory board shall not include any component whose value depends on the performance of the company or of its value. Adopted 78, 81 and 82 III.3.The variable component of remuneration shall be reasonable overall in relation to the fixed component of the remuneration and maximum limits should be set for all components. Adopted 69 III.4. A significant part of the variable remuneration should be deferred for a period not less than three years, and the right of way payment shall depend on the continued positive performance of the company during that period. Adopted 69 III.5. Members of the Board of Directors shall not enter into contracts with the company or with third parties which intend to mitigate the risk inherent to remuneration variability set by the company. Adopted 71 III.6. Executive board members shall maintain the company's shares that were allotted by virtue of variable remuneration schemes, up to twice the value of the total annual remuneration, except for those that need to be sold for paying taxes on the gains of said shares, until the end of their mandate. Not aplicable 73 and 74 III.7. When the variable remuneration includes the allocation of options, the beginning of the exercise period shall be deferred for a period not less than three years. Not aplicable 74 III.8. When the removal of board member is not due to serious breach of their duties nor to their unfitness for the normal exercise of their functions but is yet due on inadequate performance, the company shall be endowed with the adequate and necessary legal instruments so that any damages or compensation, beyond that which is legally due, is unenforceable. Adopted 69 and 83 IV. AUDITING IV.1. The external auditor shall, within the scope of its duties, verify the implementation of remuneration policies and systems of the corporate bodies as well as the efficiency and effectiveness of the internal control mechanisms and report any shortcomings to the supervisory body of the company.. Adopted 38 IV.2. The company or any entity with which it maintains a control relationship shall not engage the external auditor or any entity with which it finds itself in a group relationship or that incorporates the same network, for services other than audit services. If there are reasons for hiring such services - which must be approved by the supervisory board and explained in its Annual Report on Corporate Governance - said should not exceed more than 30% of the total value of services rendered to the company. Not Adopted 47 IV.3. Companies shall support auditor rotation after two or three terms whether four or three years, respectively. Its continuance beyond this period must be based on a specific opinion of the supervisory board that explicitly considers the conditions of auditor's independence and the benefits and costs of its replacement. Adopted 40, 42, 43 and 44 V. CONFLICTS OF INTEREST AND RELATED PARTY TRANSACTIONS V.1. The company's business with holders of qualifying holdings or entities with which they are in any type of relationship pursuant to article 20 of the Portuguese Securities Code, shall be conducted during normal market conditions. Adopted 90 V.2. The supervisory or oversight board shall establish procedures and criteria that are required to define the relevant level of significance of business with holders of qualifying holdings - or entities with which they are in any of the relationships described in article 20/1 of the Portuguese Securities Code – thus significant relevant business is dependent upon prior opinion of that body. Not Adopted 91 VI. INFORMATION VI.1. Companies shall provide, via their websites in both the Portuguese and English languages, access to information on their progress as regards the economic, financial and governance state of play. Adopted 59 to 65 VI.2. Companies shall ensure the existence of an investor support and market liaison office, which responds to requests from investors in a timely fashion and a record of the submitted requests and their processing, shall be kept. Adopted 56 to 58

The recommendations II.1.7., II.1.10., IV.2. and V.2. are not fully adopted by Altri, as explained below.

Recommendations II.1.7. and II.1.10.:

The Board Directors does not include any member that satisfies the standard of independence referred in recommendation II.1.7. and II.1.10. of Corporate Governance Code issued by the Portuguese Securities Regulator (CMVM) since the non-executive director Pedro Mendonça is relative of holders of qualifying holdings, the nonexecutive director Laurentina Martins was employee of the subsidiary Caima – Indústria de Celulose, S.A. and the non-executive director Ana Rebelo de Carvalho Menéres de Mendonça, daughter of Pedro Macedo Pinto de Mendonça administrator, is the director and dominant shareholder of the Company Promendo SGPS, SA.

To allow to the non-executive directors an independent and informed decision, the Company has the following mechanisms:

• Notices of meetings of the Board of Directors sent to all directors include the agenda, even tentatively, of the meeting, and are accompanied by all the relevant information and documentation;
• Availability of executive directors for the provision to non-executive directors, of any additional information which they consider relevant or necessary, and to carry out further studies and analyzes in relation to all matters which are the subject of deliberation or that, are under review in some way, in the Company;
• The non executive directors have wide powers to obtain information on any aspect of the Company, to examine its books, records, documents and other antecedents of the Company's operations. They can request relevant information directly to the directors and to the financial and operating senior staff of all group companies, without requiring any intervention of the executive directors in this process.

Given the corporate model adopted and the composition and mode of operation of its governing boards, including the independence of the supervisory boards, without, delegation of powers among them, the Group considers that the designation of independent directors to the Board would not yield significant improvements for the proper functioning of the corporate governance model, which has revealed itself proper and efficient.

The Director's report includes in its chapter "Activity developed by the non-executive members of the Board," a description of the activity of the non-executive director during 2014.

Recommendation IV.2.:

Altri hired the external auditor for services other than audit services representing more than 30% of the total value of services provided to the Company. However, the scope of these services was approved by the Supervisory Board, it was concluded that they did not put into question the independence of the auditors. In this particular aspect, the hiring of Deloitte proved to be the most appropriate due of its solid experience and expertise in the field of taxation and tax incentives.

Recommendation V.2.:

Transactions with Altri's directors or with companies that are in a group or dominance relationship with them, regardless of the amount, are subject to prior approval of the Board of Directors, with a favorable opinion of the Statutory Board, under the terms of article 397 of the Portuguese Companies Act.

Currently, there aren't established procedures or criteria for defining the relevant level of significance of businesses between the company and holders of qualified holdings or entities that are in a group or dominance relationship, from which the intervention from the Statutory Board is required.

However, given the above mentioned legal requirement, and especially considering the constant legal requirement of the same matter, disclosure in the annual report of the board, the occurrence of these situations, the Altri always give full compliance, the expression safeguarded not only all legal requirements, as well as all the information disclosure obligations to shareholders and to the full and transparent market.

3. Other information

In line with what has been said, Altri would like to point out that, of the forty recommendations contained in the Corporate Governance Code of 2013, six of them are not applicable for the reasons set out above, and the failure to fully adopt only four of the recommendations is largely explained above.

Altri therefore considers that, given the full compliance of thirty of these recommendations, the degree of adoption of the Company to the 2013 Corporate Governance Code's recommendations is nearly total, which is materialized in a diligent and prudent management, absolutely focused on creating value for the Company and hence for the shareholders.

LEGAL MATTERS

Own Shares

Pursuant to the requirements of article 66 of the Portuguese Companies Act, the Directors inform that as of 31 December 2014 Altri had no own shares and did not acquire or sell any own shares during the year.

Shares held by the governing boards of Altri

Pursuant to the requirements of article 447 of the Portuguese Companies Act, the Directors inform that, as of 31 December 2014, they held the following shares:

Paulo Jorge dos Santos Fernandes (a)	22,315,168
João Manuel Matos Borges de Oliveira (b)	30,000,000
Domingos José Vieira de Matos (c)	23,450,282
Pedro Miguel Matos Borges de Oliveira	14,359,708
Ana Rebelo de Carvalho Menéres de Mendonça (d)	42,586,911
Laurentina da Silva Martins	0
Pedro Macedo Pinto de Mendonça	0

(a) – Are also considered attributable to Paulo Jorge dos Santos Fernandes, apart from the 14,113,168 shares of Altri, SGPS, SA, held on an individual basis, 8,202,000 shares of Altri, SGPS, SA held by "ACTIUM CAPITAL – SGPS, SA" of which he is the dominant shareholder and director. Therefore, in legal terms, are considered attributable to Paulo Jorge dos Santos Fernando a total of 22,315,168 shares, representing 10.88% of capital and voting rights of Altri, SGPS, SA.

(b) – The 30,000,000 shares represent Altri SGPS, S.A. total shares held by the company Caderno Azul – SGPS, S.A., of which João Manuel Matos Borges de Oliveira is director and shareholder.

(c) – Are also considered attributable to Domingos José Vieira de Matos in addition to the 13,564,432 shares of Altri, SGPS, SA held on an individual basis, 9,885,850 shares of Altri SGPS, S.A held by LIVREFLUXO – SGPS, S.A., of which he is director and dominant shareholder. Thus, in legal terms, are considered attributable to Domingos José Vieira de Matos a total of 23,450,282 shares, representing 11.43% of the capital and voting rights of Altri SGPS, S.A.

(d) – The 42,586,911 shares represent Altri SGPS, S.A. total shares held by the company PROMENDO – SGPS, S.A., of which Ana Rebelo de Carvalho Menéres de Mendonça is director and dominant shareholder.

As of December 31, 2014, the Statutory Auditor, the members of the Supervisory Board and the members of the Board of the General Shareholders' Meeting held no shares of Altri.

Participation in the Company's share capital

Pursuant to the requirements of articles 16 and 20 of the Securities Code and article 448 of the Portuguese Companies Act, the Directors inform that, in accordance with the notifications received, the companies and/or individuals that hold qualified participations exceeding 2%, 5%, 10%, 20%, 33% and 50% of the voting rights, are as follows:

	Nr. of shares held	% Share capital with
Lazard Frères Gestion SAS	on 31-Dec-2014	voting rights
Through the SICAV OBJECTIF SMALL CAPS EURO (which has delegated the exercise of voting rights to Lazard Frères Gestion SAS)	4,157,000	2.03%
Total attributable	4,157,000	2.03%

	Nr. of shares held	% Share capital with
Norges Bank	on 31-Dec-2014	voting rights
Directly	4,149,572	2.02%
Total attributable	4,149,572	2.02%
	Nr. of shares held	% Share capital with
Bestinver Gestión S.A., SGIIC	on 31-Dec-2014	voting rights
Directly	8,226,265	4.01%
Through BESTINVER BOLSA, F.I.	4,103,653	2.00%
Total attributable	12,329,918	6.01%

	Nr. of shares held	% Share capital with
Pedro Miguel Matos Borges de Oliveira	on 31-Dec-2014	voting rights
Directly	14,359,708	7.00%
Total attributable	14,359,708	7.00%

	Nr. of shares held	% Share capital with
Paulo Jorge dos Santos Fernandes	on 31-Dec-2014	voting rights
Directly	14,113,168	6.88%
Through society Actium Capital - SGPS, SA (of which he is dominant shareholder and director)	8,202,000	4.00%
Total attributable	22,315,168	10.88%

	Nr. of shares held	% Share capital with
Domingos José Vieira de Matos	on 31-Dec-2014	voting rights
Directly	13,564,432	6.61%
Through the Livrefluxo - SGPS, SA (of which he is dominant shareholder and director)	9,885,850	4.82%
Total attributable	23,450,282	11.43%

	Nr. of shares held	% Share capital with
João Manuel Matos Borges de Oliveira	on 31-Dec-2014	voting rights
Through the CADERNO AZUL- SGPS, SA (of which he is shareholder and director)	30,000,000	14.62%
Total attributable	30,000,000	14.62%
	Nr. of shares held
Ana Rebelo Carvalho Menéres de Mendonça	on 31-Dec-2014	voting rights
Through the PROMENDO - SGPS, SA (of which she is dominant shareholder and director)	42,586,911	% Share capital with 20.76%

Altri was not informed of any participation exceeding 33% of the voting rights.

CLOSING REMARKS

We don't want to conclude without thanking the various partners of the group for their trust in our organization. Finally, we wish to express our gratitude to all our employees for their dedication and commitment.

Oporto, 20 March 2015

The Board of Directors

Paulo Jorge dos Santos Fernandes

__________________________________

João Manuel Matos Borges de Oliveira

__________________________________

__________________________________

__________________________________

__________________________________

Pedro Macedo Pinto de Mendonça

Domingos José Vieira de Matos

Laurentina da Silva Martins

__________________________________ Pedro Miguel Matos Borges de Oliveira

__________________________________ Ana Rebelo Carvalho Menéres Mendonça

STATEMENT UNDER THE TERMS OF ARTICLE 245, PARAGRAPH 1, C) OF THE SECURITIES CODE

The signatories individually declare that, to the best of their knowledge, the Board of Director's Report, the Individual and Consolidated Financial Statements were prepared in accordance with the International Financial Reporting Standards ("IFRS") as adopted by the European Union, and other accounting documents required by law or regulation, giving a truthful and appropriate image of assets and liabilities, financial position and the consolidated and individual results of Altri, SGPS, S.A. and of the companies included in the consolidation perimeter and contains a description of the major risks and uncertainties faced.

DECLARATION OF RESPONSIBILITY

The members of the Board of Directors of Altri, S.G.P.S., S.A. declare that they assume responsibility for this information and affirm that the items included herein are true and that, to the best of their knowledge, there are no omissions.

As required by article 21 of Decree-Law 411/91 of 17 October, the Board of Directors informs that there are no overdue debts to the State, namely with respect to Social Security.

APPENDIX I

1. Board of Directors

Qualifications, experience and positions held in other companies by the members of the Board of Directors:

Paulo Jorge dos Santos Fernandes

He was one of the founders of Cofina (company that led to the creation of Altri, by spin-off), and has been involved in the Group's management since its incorporation. Graduated from Oporto University with a degree in Electronic Engineering, also has an MBA from the Nova University of Lisbon.

He is shareholder of the Company since 2005 having been also appointed Director at the same date.

In addition to the Companies where he currently performs management functions, his professional experience includes:

1982/1984	Assistant Director of Production of CORTAL
1986/1989	General Director of CORTAL
1989/1994	President of the Board of CORTAL
1995	Director of CRISAL – CRISTAIS DE ALCOBAÇA, SA
1997	Director of Grupo Vista Alegre, SA
1997	Chairman of the Board of ATLANTIS - Cristais de Alcobaça, SA
2000/2001	Director of SIC
2001	Director of V.A.A.

Throughout his career, also played roles in several associations:

1989/1994	President of FEMB (Fédération Européene de Mobilier de Bureau) for Portugal;
1989/1990	President of the General Meeting Assoc. Industr. Águeda
1991/1993	Member of the Advisory Board Assoc. Ind. Portuense
Since 2005	Member of Superior Board at the MBA Former Student's Association
2013/2016	President of the Supervisory Board of BCSD
Since 2006	Member of the Advisory Board for engineering and management of IST

The other companies where he carries out management functions as of 31 December 2014 are as follows:

• Actium Capital, SGPS, S.A. (a)
• Alteria, S.G.P.S., S.A. (a)
• Altri Abastecimento de Madeira, S.A.
• Altri Participaciones Y Trading, S.L.
• Base Holding, SGPS, S.A. (a)
• Caima Indústria de Celulose, S.A.
• Caima Energia Emp. Gestão e Exploração de Energia, S.A.
• Celulose Beira Industrial (Celbi), S.A.
• Celtejo Empresa de Celulose do Tejo, S.A.
• Cofihold SGPS, S.A. (a)
• Cofina, S.G.P.S, S.A. (a)
• Cofina Media, S.A. (a)
• Elege Valor, S.G.P.S., S.A. (a)
• F. Ramada Investimentos, S.G.P.S., S.A. (a)
• F. Ramada II Imobiliária, S.A. (a)
• Jardins de França Empreendimentos Imobiliários, S.A. (a)
• Malva Gestão Imobiliária, S.A. (a)

• Metro News, Publicações, S.A. (a)

• Préstimo Prestígio Imobiliário, S.A. (a)

• Ramada Aços, S.A. (a)
• Ramada Storage Solutions, S.A. (a)
• Sociedade Imobiliária Porto Seguro Investimentos Imobiliários, S.A. (a)
• Torres da Luz Investimentos Imobiliários, S.A. (a)
• Transjornal Edição de Publicações, S.A. (a)

(a) Companies that, as of December 31, 2014 cannot be considered to be part of Altri, S.G.P.S., S.A. group

João Manuel Matos Borges de Oliveira

He was also one of the founders of Cofina and has been involved in the Group's management since its incorporation. Graduated from Oporto University with a degree in Chemical Engineering, holds an MBA from INSEAD. He develops his activity in the media and industrial operations, as well as in the strategic definition of the Group. He is a shareholder of the company since 2005 and has also been appointed director on the same date.

In addition to the Companies where he currently performs management functions, his professional experience includes:

1982/1983	Assistant Production Director of Cortal
1984/1985	Production Director of Cortal
1987/1989	Marketing Director of Cortal
1989/1994	General Director of Cortal
1989/1995	Vice President of the Board of Cortal
1989/1994	Director of Seldex
1992/1994	Vice President of General Meeting of Assoc. Industr. Águeda
1995/2004	President of Supervisory Board of Assoc. Industr. Aveiro
1996/2000	Non-executive Director of Atlantis, SA
1997/2000	Non-executive Director of Vista Alegre, SA
1998/1999	Director of Efacec Capital, SGPS, SA
Since 2008	President of Supervisory Board of Porto Business School
2008/2011	Non-executive Director of Zon Multimédia, SGPS, S.A.
2011/2013	Member of ISCTE-IUL CFO Advisory Forum

The other companies where he carries out management functions as of 31 December 2014 are as follows:

• Alteria, S.G.P.S., S.A. (a)
• Altri Abastecimento de Madeira, S.A.
• Altri Participaciones Y Trading, S.L.
• Base Holding, SGPS, S.A. (a)
• Caderno Azul, S.G.P.S., S.A. (a)
• Caima Indústria de Celulose, S.A.
• Caima Energia Emp. Gestão e Exploração de Energia, S.A.
• Captaraíz Unipessoal, Lda.
• Celulose Beira Industrial (Celbi), S.A.
• Celtejo Empresa de Celulose do Tejo, S.A.
• Cofina, SGPS, S.A. (a)
• Cofina Media, S.A. (a)
• Cofihold SGPS, S.A. (a)
• Elege Valor, S.G.P.S., S.A. (a)
• F. Ramada Investimentos, S.G.P.S., S.A. (a)
• F. Ramada II Imobiliária, S.A. (a)
• F. Ramada Serviços de Gestão, Lda. (a)
• Grafedisport Impressão e Artes Gráficas, S.A. (a)
• Indaz, S.A. (a)

• Jardins de França Empreendimentos Imobiliários, S.A. (a)

• Malva Gestão Imobiliária, S.A. (a)

• Préstimo Prestígio Imobiliário, S.A. (a)
• Ramada Aços, S.A. (a)
• Ramada Storage Solutions, S.A. (a)
• Storax Limited (a)
• Sociedade Imobiliária Porto Seguro Investimentos Imobiliários, S.A. (a)
• Torres da Luz Investimentos imobiliários, S.A. (a)
• Universal Afir, S.A. (a)

a) – Companies that, as of December 31, 2014 cannot be considered to be part of Altri, S.G.P.S., S.A. group

Pedro Macedo Pinto de Mendonça

He was one of the founders of Cofina (company that originated Altri by spin-off) and has been directly involved in the management of the Group since its beginning. Attended the Faculty of Medicine of Oporto for two years and holds a degree in Mechanics from the École Superiore de L'Etat in Brussels. He is Director of the Company since 2005.

In addition to the Companies where he currently performs management functions, his professional experience includes:

1959	Director of Supply of Empresa de Metalurgia Artística Lisboa
1965	Production Director of Empresa de Metalurgia Artística Lisboa
1970	Director and sales responsible of Seldex
1986	Founding Partner of Euroseel
1986/1990	Director of Euroseel
1986	Chairman of the Board of Seldex
1989	Director of Cortal

The other companies where he carries out management functions as of 31 December 2014 are as follows:

• Alteria, S.G.P.S., S.A. (a)
• Caima Indústria de Celulose, S.A.
• Celulose Beira Industrial (Celbi), S.A.
• Celtejo Empresa de Celulose do Tejo, S.A.
• Cofina, SGPS, S.A. (a)
• Cofina Media, S.A. (a)
• Cofihold, S.G.P.S., S.A. (a)
• Elege Valor, S.G.P.S., S.A. (a)
• F. Ramada Investimentos, S.G.P.S., S.A. (a)
• F. Ramada II Imobiliária, S.A. (a)
• Jardins de França Empreendimentos Imobiliários, S.A. (a)
• Malva Gestão Imobiliária, S.A. (a)
• Préstimo Prestígio Imobiliário, S.A. (a)
• Ramada Aços, S.A. (a)
• Ramada Storage Solutions, S.A. (a)
• Sociedade Imobiliária Porto Seguro Investimentos Imobiliários, S.A. (a)
• Torres da Luz Investimentos imobiliários, S.A. (a)
• Universal Afir, S.A. (a)

a) – Companies that, as of December 31, 2014 cannot be considered to be part of Altri, S.G.P.S., S.A. group.

Domingos José Vieira de Matos

He was one of the founders of Cofina (company that originated Altri by spin-off) and has been directly involved in the management of the Group since its beginning. He holds a degree in Economics from the Faculty of Economy of Oporto and began his carrier in management in 1978. He is shareholder of the Company since 2005 and has been director since that date.

In addition to the Companies where he currently performs management functions, his professional experience includes:

1978/1994	Administrator of CORTAL, SA
1983	Founding Partner of PROMEDE – Produtos Médicos, SA
1998/2000	Administrator of ELECTRO CERÂMICA, SA

The other companies where he carries out management functions as of 31 December 2014 are as follows:

• Alteria, S.G.P.S., S.A. (a)
• Altri Florestal, S.A.
• Base Holding, SGPS, S.A. (a)
• Caima Indústria de Celulose, S.A.
• Celulose Beira Industrial (Celbi), S.A.
• Cofina, SGPS, S.A. (a)
• Cofihold SGPS, S.A. (a)
• Elege Valor, S.G.P.S., S.A. (a)
• F. Ramada Investimentos, S.G.P.S., S.A. (a)
• F. Ramada II Imobiliária, S.A. (a)
• F. Ramada Serviços de Gestão, Lda. (a)
• Jardins de França Empreendimentos Imobiliários, S.A. (a)
• Livrefluxo, S.G.P.S., S.A. (a)
• Malva Gestão Imobiliária, S.A. (a)
• Préstimo Prestígio Imobiliário, S.A. (a)
• Ramada Aços, S.A. (a)
• Ramada Storage Solutions, S.A. (a)
• Sociedade Imobiliária Porto Seguro Investimentos Imobiliários, S.A. (a)
• Torres da Luz Investimentos imobiliários, S.A. (a)
• Universal Afir, S.A. (a)

Laurentina da Silva Martins

With education in Finance and Administration from Instituto Superior do Porto she is related with Altri Group since its incorporation and was appointed director of the company in March 2009.

Her Professional experience includes:

• 1965 Financial direction assessor of Companhia de Celulose do Caima, S.A.
• 1990 Financial director of Companhia de Celulose do Caima, S.A.
• 2001 Director of Cofina Media, SGPS, S.A.
• 2001 Director of Caima Energia Empresa de Gestão e Exploração de Energia, S.A.
• 2004 Director of Grafedisport Impressão e Artes Gráficas, S.A.
• 2005 Director of Silvicaima Sociedade Silvícola do Caima, S.A. (now Altri Florestal, S.A.)
• 2006 Director of EDP Produção Bioeléctrica, S.A.

The other companies where she carries out management functions as of 31 December 2014 are as follows:

• EDP Produção Bioeléctrica, S.A.
• Ródão Power Energia e Biomassa do Ródão, S.A.

Pedro Miguel Matos Borges de Oliveira

Holds a degree in Financial Management by the Institute of Administration and Management of Porto. In 2000 completed the Executive MBA in the Enterprise Institute Porto in partnership with ESADE Business School, Barcelona, currently Catholic Porto Business School. In 2009 completed the Business Valuation Course in EGE-Business Management School. Was appointed director of the Company in April 2014.

In addition to the Companies where he currently performs management functions, his professional experience includes:

1986/2000	FERÁGUEDA, Lda. - Management advisor
1992	Bemel, Lda. - Director
1997/1999	GALAN, Lda. – Assistant Director
1999/2000	F.Ramada, Aços e Indústrias, S.A. – Assistent Director
2000	F. Ramada, Aços e Indústrias, S.A. - Director
2006	Universal Afir, Aços Especiais e Ferramentas, S.A. - Director
2009	F. Ramada Investimentos, S.G.P.S., S.A. - Director

The other companies where he carries out management functions as of 31 December 2014 are as follows:

• Alteria, S.G.P.S., S.A. (a)
• Altri Florestal, S.A.
• Celulose Beira Industrial (Celbi), S.A.
• Cofihold SGPS, S.A. (a)
• Cofina, S.G.P.S., S.A. (a)
• Elege Valor, S.G.P.S., S.A. (a)
• F. Ramada Investimentos, S.G.P.S., S.A. (a)
• F. Ramada II Imobiliária, S.A. (a)
• F. Ramada Serviços de Gestão, Lda. (a)
• Jardins de França Empreendimentos Imobiliários, S.A. (a)
• Malva Gestão Imobiliária, S.A. (a)
• Préstimo Prestígio Imobiliário, S.A. (a)
• Ramada Aços, S.A. (a)
• Ramada Storage Solutions, S.A. (a)
• Sociedade Imobiliária Porto Seguro Investimentos Imobiliários, S.A. (a)
• Torres da Luz Investimentos imobiliários, S.A. (a)

• Universal Afir, S.A. (a)

• Valor Autêntico, S.G.P.S., S.A. (a)

(a) – companies that, as of 31 December 2014, cannot be considered as part of the Altri, SGPS, SA group.

Ana Rebelo de Carvalho Menéres de Mendonça

Holds a degree in Economics by the Universidade Católica Portuguesa of Lisbon. Was appointed director of the Company in April 2014.

The other companies where she carries out management functions as of 31 December 2014 are as follows:

1995	Newspaper "Semanário Económico" - Journalist in the economics area.
1996	Citibank – Commercial Department
1996	Promendo, S.A.- Director
2009	PROMENDO, SGPS, S.A. - Director

The other companies where she carries out management functions as of 31 December 2014 are as follows:

• Cofina, S.G.P.S., S.A. (a)
• F. Ramada Investimentos, SGPS, S.A. (a)
• Jardins de França Empreendimentos Imobiliários, S.A. (a)
• Promendo, SGPS, S.A. (a)
• Préstimo Prestígio Imobiliário, S.A. (a)
• Ramada Aços, S.A. (a)
• Ramada Storage Solutions, S.A. (a)

2. Supervisory Board

Qualifications, experience and positions held in other companies by members of the Supervisory Board:

Pedro Nuno Fernandes de Sá Pessanha Da Costa

Qualifications:

Degree in Law from the Faculty of Law of the University of Coimbra in 1981 Complementar training in Company Management and Economic and Financial Analysis at the School of Law of the Portuguese Catholic University, Porto, 1982 and 1983.

Professional Experience:

Member of the Lawyers Association ("Ordem dos advogados) since 1983 President of the General and Supervisory Board of a public company from 1996 to 2010, President of the General Shareholders Meeting of several listed and non-listed companies Co-author of the chapter on Portugal in "Handbuch der Europäischen Aktien- Gesellschaft" – Societas Europaea – by Jannot / Frodermann, published by C.F. Müller Verlag Continuous law practice since 1983, with a special focus on commercial law and corporate law, mergers and acquisitions, foreign investment and international contracts Honorary Consul of Belgium in Porto

Other positions held:

President of the Supervisory Board of Cofina, SGPS, SA (a) President of the Supervisory Board of F. Ramada Investimentos, SGPS, S.A. (a) Member of the Cofina, SGPS, S.A. Remuneration Committee (a) Member of the F. Ramada Investimentos, SGPS, S.A. Remuneration Committee (a)

(a) – companies that, as of 31 December 2014, cannot be considered as part of the Altri, SGPS, SA group.

André Seabra Ferreira Pinto

Qualifications:	Degree in Economics at University Portucalense Chartered Accountant (ROC no. 1,243) Executive MBA - Management School of Porto - University of Porto Business School
Professional Experience:	Between September 1999 and May 2008, worked in the Audit Department of Deloitte & Associados, SROC, SA (initially as a member of staff and since September 2004 as Manager).
	Between June 2008 and December 2010, Senior Manager of Corporate Finance department - Transaction Services at Deloitte Consulting.
	Between January 2011 and March 2013, CFO of companies WireCoWorldGroup Group in Portugal (a)
	Since April 2013, Director (CFO) of Mecwide Group (a)
Other positions held:	Member of the Supervisory Board of Cofina, SGPS, S.A. (a)

Member of the Supervisory Board of Cofina, SGPS, S.A. (a) Member of the Supervisory Board of F. Ramada Investimentos, SGPS, S.A. (a)

José Guilherme Barros Silva

Qualifications: 1990-1995 Degree in Business Administration and Management, Portuguese Catholic University

Professional Experience: 1995-1997 IC, Arthur Andersen, SC

1997-2010 Vice President of the Board of Directors, Detipin -Comércio de Vestuário, SA.(a) 2004- Member of the Board of Directors, SEF - Serviços de Saúde e Fisioterapia, SA. (a) 2005-2010 Member of the Board of Directors, Globaljeans - Comércio de Vestuário, SA (a) 2005- Vice-President of the Board of Directors, SEF - Serviços de Saúde e Fisioterapia, SA. (a) 2005-2009 Vice President of the Board of Directors, AH Business, SGPS, SA (a) 2006- Member of the Board of Directors, Fisiofafe, SA. (a) 2009- Member of the Board of Directors, Clínica de S. Cosme de Gondomar II, Fisioterapia, SA. (a) 2011- President of the Board of Directors, GNG – Comércio de Vestuário, SA. (a)

Other positions held:

Member of the Supervisory Board of Cofina, SGPS, S.A. (a) Member of the Supervisory Board of F. Ramada Investimentos, SGPS, S.A. (a)

Article 447 of the Portuguese Companies Act and Article 14, paragraph 7 of Portuguese Securities Regulator (CMVM) Regulation nr. 5/2008

Disclosure of shares and other securities held by members of the Board of Directors and by those discharging managerial responsibilities, as well as by people closely connected with them (article 248-B of the Portuguese Securities Code), and disclosure of the respective transactions during the year involving such shares and other securities

	Shares held at 31-				Shares held at 31-
Members of other Board of Directors	Dec-2013	Aquisitions Disposals		Others	Dec-2014
Paulo Jorge dos Santos Fernandes	21,643,168	-	(3,530,000)	(4,000,000)	14,113,168
Paulo Jorge dos Santos Fernandes (assigned to ACTIUM CAPITAL - SGPS, S.A.)	2,400,000	5,802,000	-	-	8,202,000
Pedro Macedo Pinto de Mendonça	1,705,000		- - 1,705,000	-	-
João Manuel Matos Borges de Oliveira (assigned to CADERNO AZUL - SGPS, S.A.)	29,000,000	1,000,000	-	-	30,000,000
Domingos José Vieira de Matos	13,939,432	-	-	(375,000)	13,564,432
Domingos José Vieira de Matos (assigned to LIVREFLUXO - SGPS, S.A.)	8,664,064	1,221,786	-	-	9,885,850
Pedro Miguel Matos Borges de Oliveira (1)	12,905,000	1,454,708	-	-	14,359,708
Ana Rebelo Carvalho Menéres de Mendonça (assigned to PROMENDO - SGPS, S.A.) (1)	42,586,911	-	-	-	42,586,911

(1) initial number of shares corresponds to the number of shares held on the date that these directors were elected to the Board of Directors (24-04-2014)

Paulo Jorge dos Santos Fernandes

Date	Type	Volume	Price (€)	Local	Nr of Shares
31-dez-2013	-	-	-	-	21.643.168
16-jul-2014	Sell	(1.000.000)	2,075000	NYSE Euronext Lisbon	20.643.168
20-ago-2014	Sell	(1.000.000)	2,100000	NYSE Euronext Lisbon	19.643.168
1-set-2014	Sell	(530.000)	2,100000	NYSE Euronext Lisbon	19.113.168
8-set-2014	Sell	(1.000.000)	2,100000	NYSE Euronext Lisbon	18.113.168
19-dez-2014	Donation	(4.000.000)	2,411000	-	14.113.168
31-dez-2014	-	-	-	-	14.113.168

Paulo Jorge dos Santos Fernandes (imputação via ACTIUM CAPITAL - SGPS, S.A.)

Date	Type	Volume	Price (€)	Local	Nr of Shares
31-dez-2013	-	-	-	-	2.400.000
16-jul-2014	Buy	1.000.000	2,075000	NYSE Euronext Lisbon	3.400.000
20-ago-2014	Buy	1.000.000	2,100000	NYSE Euronext Lisbon	4.400.000
1-set-2014	Buy	530.000	2,100000	NYSE Euronext Lisbon	4.930.000
8-set-2014	Buy	1.000.000	2,100000	NYSE Euronext Lisbon	5.930.000
9-set-2014	Buy	8.587	2,352000	NYSE Euronext Lisbon	5.938.587
9-set-2014	Buy	1.413	2,360000	NYSE Euronext Lisbon	5.940.000
9-set-2014	Buy	15.000	2,361000	NYSE Euronext Lisbon	5.955.000
9-set-2014	Buy	3.146	2,362000	NYSE Euronext Lisbon	5.958.146
9-set-2014	Buy	9.831	2,367000	NYSE Euronext Lisbon	5.967.977
9-set-2014	Buy	14.261	2,370000	NYSE Euronext Lisbon	5.982.238
9-set-2014	Buy	527	2,374000	NYSE Euronext Lisbon	5.982.765
9-set-2014	Buy	1.450	2,375000	NYSE Euronext Lisbon	5.984.215
9-set-2014	Buy	1.406	2,358000	NYSE Euronext Lisbon	5.985.621
9-set-2014	Buy	10.785	2,367000	NYSE Euronext Lisbon	5.996.406
9-set-2014	Buy	5.000	2,371000	NYSE Euronext Lisbon	6.001.406
9-set-2014	Buy	740	2,374000	NYSE Euronext Lisbon	6.002.146
9-set-2014	Buy	9.260	2,375000	NYSE Euronext Lisbon	6.011.406
9-set-2014	Buy	887	2,376000	NYSE Euronext Lisbon	6.012.293
9-set-2014	Buy	4.329	2,377000	NYSE Euronext Lisbon	6.016.622
9-set-2014	Buy	13.378	2,380000	NYSE Euronext Lisbon	6.030.000
10-set-2014	Buy	3.793	2,350000	NYSE Euronext Lisbon	6.033.793
10-set-2014	Buy	4.004	2,360000	NYSE Euronext Lisbon	6.037.797
10-set-2014	Buy	11.545	2,361000	NYSE Euronext Lisbon	6.049.342
10-set-2014	Buy	1.304	2,369000	NYSE Euronext Lisbon	6.050.646
10-set-2014	Buy	12.000	2,370000	NYSE Euronext Lisbon	6.062.646
10-set-2014	Buy	3.451	2,380000	NYSE Euronext Lisbon	6.066.097
10-set-2014	Buy	23.272	2,385000	NYSE Euronext Lisbon	6.089.369
10-set-2014	Buy	1.400	2,387000	NYSE Euronext Lisbon	6.090.769
10-set-2014	Buy	10.000	2,388000	NYSE Euronext Lisbon	6.100.769
10-set-2014	Buy	5.000	2,390000	NYSE Euronext Lisbon	6.105.769
10-set-2014	Buy	400	2,399000	NYSE Euronext Lisbon	6.106.169
10-set-2014	Buy	9.895	2,400000	NYSE Euronext Lisbon	6.116.064
10-set-2014	Buy	9.752	2,405000	NYSE Euronext Lisbon	6.125.816
10-set-2014	Buy	2.927	2,418000	NYSE Euronext Lisbon	6.128.743
10-set-2014	Buy	3.936	2,423000	NYSE Euronext Lisbon	6.132.679
10-set-2014	Buy	10.000	2,426000	NYSE Euronext Lisbon	6.142.679
10-set-2014	Buy	2.873	2,430000	NYSE Euronext Lisbon	6.145.552
10-set-2014	Buy	6.927	2,432000	NYSE Euronext Lisbon	6.152.479
10-set-2014	Buy	7.448	2,433000	NYSE Euronext Lisbon	6.159.927
10-set-2014	Buy	30.000	2,434000	NYSE Euronext Lisbon	6.189.927
10-set-2014	Buy	10.000	2,435000	NYSE Euronext Lisbon	6.199.927
10-set-2014	Buy	2.073	2,436000	NYSE Euronext Lisbon	6.202.000
19-dez-2014	Buy	1.000.000	2,411000	NYSE Euronext Lisbon	7.202.000
24-dez-2014	Buy	1.000.000	2,411000	NYSE Euronext Lisbon	8.202.000
31-dez-2014	-	-	-	-	8.202.000

Pedro Macedo Pinto de Mendonça

Date	Type	Volume	Price (€)	Local	Nr of Shares
31-dez-2013	-	-	-	-	1.705.000
24-nov-2014	Sell	(1.705.000)	2,260000	Lisboa	-
31-dez-2014	-	-	-	-	-

24-nov-2014	Sell	(1.705.000)	2,260000	Lisboa	-
31-dez-2014	-	-	-	-	-
				João Manuel Matos Borges de Oliveira (imputação via CADERNO AZUL - SGPS, S.A.)
Date	Type	Volume	Price (€)	Local	Nr of Shares
31-dez-2013	-	-	-	-	29.000.000
1-ago-2014	Buy	14.301	1,970000	NYSE Euronext Lisbon	29.014.301
1-ago-2014	Buy	2.685	1,971000	NYSE Euronext Lisbon	29.016.986
1-ago-2014	Buy	13.014	1,974000	NYSE Euronext Lisbon	29.030.000
1-ago-2014	Buy	3.000	1,975000	NYSE Euronext Lisbon	29.033.000
1-ago-2014	Buy	5.054	1,977000	NYSE Euronext Lisbon	29.038.054
1-ago-2014	Buy	12.707	1,978000	NYSE Euronext Lisbon	29.050.761
1-ago-2014	Buy	3.378	1,979000	NYSE Euronext Lisbon	29.054.139
1-ago-2014	Buy	15.105	1,980000	NYSE Euronext Lisbon	29.069.244
1-ago-2014	Buy	20.000	1,984000	NYSE Euronext Lisbon	29.089.244
1-ago-2014	Buy	3.481	1,985000	NYSE Euronext Lisbon	29.092.725
1-ago-2014	Buy	2.759	1,990000	NYSE Euronext Lisbon	29.095.484
1-ago-2014	Buy	14.649	2,000000	NYSE Euronext Lisbon	29.110.133
1-ago-2014	Buy	4.814	2,001000	NYSE Euronext Lisbon	29.114.947
1-ago-2014	Buy	8.289	2,002000	NYSE Euronext Lisbon	29.123.236
1-ago-2014	Buy	3.697	2,003000	NYSE Euronext Lisbon	29.126.933
1-ago-2014	Buy	2.909	2,005000	NYSE Euronext Lisbon	29.129.842
1-ago-2014	Buy	457	2,006000	NYSE Euronext Lisbon	29.130.299
1-ago-2014	Buy	326	2,008000	NYSE Euronext Lisbon	29.130.625
1-ago-2014	Buy	19.375	2,009000	NYSE Euronext Lisbon	29.150.000
1-ago-2014	Buy	500	2,010000	NYSE Euronext Lisbon	29.150.500
1-ago-2014	Buy	3.901	2,011000	NYSE Euronext Lisbon	29.154.401
1-ago-2014	Buy	1.213	2,015000	NYSE Euronext Lisbon	29.155.614
1-ago-2014	Buy	2.254	2,017000	NYSE Euronext Lisbon	29.157.868
1-ago-2014	Buy	5.515	2,018000	NYSE Euronext Lisbon	29.163.383
1-ago-2014	Buy	4.500	2,020000	NYSE Euronext Lisbon	29.167.883
1-ago-2014	Buy	2.117	2,021000	NYSE Euronext Lisbon	29.170.000
5-ago-2014	Buy	31.310	2,022000	NYSE Euronext Lisbon	29.201.310
5-ago-2014	Buy	836	2,034000	NYSE Euronext Lisbon	29.202.146
5-ago-2014	Buy	799	2,041000	NYSE Euronext Lisbon	29.202.945
5-ago-2014	Buy	3.170	2,049000	NYSE Euronext Lisbon	29.206.115
5-ago-2014	Buy	18.044	2,060000	NYSE Euronext Lisbon	29.224.159
5-ago-2014	Buy	1.738	2,070000	NYSE Euronext Lisbon	29.225.897
5-ago-2014	Buy	4.259	2,074000	NYSE Euronext Lisbon	29.230.156
5-ago-2014	Buy	20.741	2,075000	NYSE Euronext Lisbon	29.250.897
6-ago-2014	Buy	23.232	2,023000	NYSE Euronext Lisbon	29.274.129
6-ago-2014	Buy	3.468	2,024000	NYSE Euronext Lisbon	29.277.597
6-ago-2014	Buy	6.443	2,025000	NYSE Euronext Lisbon	29.284.040
6-ago-2014	Buy	2.086	2,026000	NYSE Euronext Lisbon	29.286.126
6-ago-2014	Buy	1.000	2,028000	NYSE Euronext Lisbon	29.287.126
6-ago-2014	Buy	2.917	2,030000	NYSE Euronext Lisbon	29.290.043
6-ago-2014	Buy	1.000	2,032000	NYSE Euronext Lisbon	29.291.043
6-ago-2014	Buy	4.000	2,033000	NYSE Euronext Lisbon	29.295.043
6-ago-2014	Buy	2.000	2,036000	NYSE Euronext Lisbon	29.297.043
6-ago-2014	Buy	2.957	2,037000	NYSE Euronext Lisbon	29.300.000
7-ago-2014	Buy	4.818	1,902000	NYSE Euronext Lisbon	29.304.818
7-ago-2014	Buy	603	1,903000	NYSE Euronext Lisbon	29.305.421
7-ago-2014	Buy	4.245	1,922000	NYSE Euronext Lisbon	29.309.666
7-ago-2014	Buy	1.000	1,940000	NYSE Euronext Lisbon	29.310.666
7-ago-2014	Buy	1.305	1,987000	NYSE Euronext Lisbon	29.311.971
7-ago-2014	Buy	17.135	1,988000	NYSE Euronext Lisbon	29.329.106
7-ago-2014	Buy	894	1,989000	NYSE Euronext Lisbon	29.330.000
19-ago-2014	Buy	2.042	2,184000	NYSE Euronext Lisbon	29.332.042
19-ago-2014	Buy	10.000	2,190000	NYSE Euronext Lisbon	29.342.042

19-ago-2014 Buy 503 2,204000 NYSE Euronext Lisbon 29.342.545 19-ago-2014 Buy 75 2,206000 NYSE Euronext Lisbon 29.342.620 19-ago-2014 Buy 759 2,207000 NYSE Euronext Lisbon 29.343.379 19-ago-2014 Buy 5.000 2,208000 NYSE Euronext Lisbon 29.348.379 19-ago-2014 Buy 1.621 2,210000 NYSE Euronext Lisbon 29.350.000 19-ago-2014 Buy 201.948 2,214000 NYSE Euronext Lisbon 29.551.948 19-ago-2014 Buy 8.052 2,215000 NYSE Euronext Lisbon 29.560.000

João Manuel Matos Borges de Oliveira (assigned by CADERNO AZUL - SGPS, S.A.)

Date	Type	Volume	Price (€)	Local	Nr of Shares
20-ago-2014	Buy	5.473	2,165000	NYSE Euronext Lisbon	29.565.473
20-ago-2014	Buy	6.233	2,169000	NYSE Euronext Lisbon	29.571.706
20-ago-2014	Buy	1.553	2,177000	NYSE Euronext Lisbon	29.573.259
20-ago-2014	Buy	3.294	2,180000	NYSE Euronext Lisbon	29.576.553
20-ago-2014	Buy	5.000	2,181000	NYSE Euronext Lisbon	29.581.553
20-ago-2014	Buy	163	2,188000	NYSE Euronext Lisbon	29.581.716
20-ago-2014	Buy	689	2,189000	NYSE Euronext Lisbon	29.582.405
20-ago-2014	Buy	1.191	2,190000	NYSE Euronext Lisbon	29.583.596
20-ago-2014	Buy	1.404	2,207000	NYSE Euronext Lisbon	29.585.000
21-ago-2014	Buy	1.234	2,197000	NYSE Euronext Lisbon	29.586.234
21-ago-2014	Buy	519	2,199000	NYSE Euronext Lisbon	29.586.753
21-ago-2014	Buy	13.247	2,200000	NYSE Euronext Lisbon	29.600.000
22-ago-2014	Buy	662	2,193000	NYSE Euronext Lisbon	29.600.662
22-ago-2014	Buy	19.338	2,195000	NYSE Euronext Lisbon	29.620.000
22-ago-2014	Buy	380.000	2,214000	NYSE Euronext Lisbon	30.000.000
31-dez-2014	-	-	-	-	30.000.000

Domingos José Vieira de Matos

Date	Type	Volume	Price (€)	Local	Nr of Shares
31-dez-2013	-	-	-	-	13.939.432
13-nov-2014	Donation	(375.000)	2,242000	-	13.564.432
31-dez-2014	-	-	-	-	13.564.432

Date	Type	Volume	Price (€)	Local	Nr of Shares
31-dez-2013	-	-	-	-	8.664.064
30-jul-2014	Buy	79.136	2,080000	NYSE Euronext Lisbon	8.743.200
31-jul-2014	Buy	680	2,065000	NYSE Euronext Lisbon	8.743.880
31-jul-2014	Buy	20.864	2,080000	NYSE Euronext Lisbon	8.764.744
6-ago-2014	Buy	5.565	2,015000	NYSE Euronext Lisbon	8.770.309
6-ago-2014	Buy	2.508	2,017000	NYSE Euronext Lisbon	8.772.817
6-ago-2014	Buy	3.780	2,018000	NYSE Euronext Lisbon	8.776.597
6-ago-2014	Buy	1.385	2,019000	NYSE Euronext Lisbon	8.777.982
6-ago-2014	Buy	16.761	2,020000	NYSE Euronext Lisbon	8.794.743
6-ago-2014	Buy	5.723	2,022000	NYSE Euronext Lisbon	8.800.466
6-ago-2014	Buy	39.343	2,023000	NYSE Euronext Lisbon	8.839.809
6-ago-2014	Buy	170	2,024000	NYSE Euronext Lisbon	8.839.979
6-ago-2014	Buy	4.057	2,025000	NYSE Euronext Lisbon	8.844.036
6-ago-2014	Buy	20.481	2,026000	NYSE Euronext Lisbon	8.864.517
6-ago-2014	Buy	4.165	2,029000	NYSE Euronext Lisbon	8.868.682
6-ago-2014	Buy	2.910	2,030000	NYSE Euronext Lisbon	8.871.592
6-ago-2014	Buy	953	2,032000	NYSE Euronext Lisbon	8.872.545
6-ago-2014	Buy	24.602	2,033000	NYSE Euronext Lisbon	8.897.147
6-ago-2014	Buy	2.310	2,036000	NYSE Euronext Lisbon	8.899.457
6-ago-2014	Buy	7.500	2,037000	NYSE Euronext Lisbon	8.906.957
6-ago-2014	Buy	7.407	2,040000	NYSE Euronext Lisbon	8.914.364
6-ago-2014	Buy	380	2,041000	NYSE Euronext Lisbon	8.914.744
7-ago-2014	Buy	4.084	1,935000	NYSE Euronext Lisbon	8.918.828
7-ago-2014	Buy	404	1,936000	NYSE Euronext Lisbon	8.919.232
7-ago-2014	Buy	12.381	1,940000	NYSE Euronext Lisbon	8.931.613
7-ago-2014	Buy	275	1,981000	NYSE Euronext Lisbon	8.931.888
7-ago-2014	Buy	500	1,988000	NYSE Euronext Lisbon	8.932.388
7-ago-2014	Buy	3.368	1,995000	NYSE Euronext Lisbon	8.935.756
7-ago-2014	Buy	3.303	1,998000	NYSE Euronext Lisbon	8.939.059
7-ago-2014	Buy	210	1,999000	NYSE Euronext Lisbon	8.939.269
7-ago-2014	Buy	5.663	2,011000	NYSE Euronext Lisbon	8.944.932
7-ago-2014	Buy	894	2,012000	NYSE Euronext Lisbon	8.945.826
7-ago-2014	Buy	5.480	2,013000	NYSE Euronext Lisbon	8.951.306
7-ago-2014	Buy	5.311	2,014000	NYSE Euronext Lisbon	8.956.617
7-ago-2014	Buy	3.692	2,015000	NYSE Euronext Lisbon	8.960.309
7-ago-2014	Buy	5.347	2,017000	NYSE Euronext Lisbon	8.965.656
7-ago-2014	Buy	1.443	2,018000	NYSE Euronext Lisbon	8.967.099
7-ago-2014	Buy	250	2,019000	NYSE Euronext Lisbon	8.967.349
7-ago-2014	Buy	4.500	2,020000	NYSE Euronext Lisbon	8.971.849
7-ago-2014	Buy	10.756	2,025000	NYSE Euronext Lisbon	8.982.605
8-ago-2014	Buy	2.139	1,985000	NYSE Euronext Lisbon	8.984.744
8-ago-2014	Buy	10.589	1,991000	NYSE Euronext Lisbon	8.995.333
8-ago-2014	Buy	1.000	1,999000	NYSE Euronext Lisbon	8.996.333
8-ago-2014	Buy	933	2,009000	NYSE Euronext Lisbon	8.997.266
8-ago-2014	Buy	2.478	2,012000	NYSE Euronext Lisbon	8.999.744
8-ago-2014	Buy	15.000	2,015000	NYSE Euronext Lisbon	9.014.744
8-ago-2014	Buy	100.000	2,040000	NYSE Euronext Lisbon	9.114.744
8-ago-2014	Buy	100.000	2,050000	NYSE Euronext Lisbon	9.214.744
10-set-2014	Buy	50.000	2,432000	NYSE Euronext Lisbon	9.264.744
12-set-2014	Buy	102.302	2,550000	NYSE Euronext Lisbon	9.367.046
16-set-2014	Buy	7.646	2,475000	NYSE Euronext Lisbon	9.374.692
17-set-2014	Buy	50.000	2,460000	NYSE Euronext Lisbon	9.424.692
26-set-2014	Buy	201.714	2,239000	NYSE Euronext Lisbon	9.626.406
1-out-2014	Buy	102.444	2,255000	NYSE Euronext Lisbon	9.728.850
6-out-2014	Buy	157.000	2,215000	NYSE Euronext Lisbon	9.885.850

Date	Type	Volume	Price (€)	Local	Nr of Shares
31-dez-2013	-	-	-	-	12.905.000
1-ago-2014	Buy	3.047	1,980000	NYSE Euronext Lisbon	12.908.047
1-ago-2014	Buy	24.000	2,000000	NYSE Euronext Lisbon	12.932.047
1-ago-2014 1-ago-2014	Buy Buy	20.000 2.338	2,001000 2,008000	NYSE Euronext Lisbon NYSE Euronext Lisbon	12.952.047 12.954.385
1-ago-2014	Buy	1.000	2,010000	NYSE Euronext Lisbon	12.955.385
1-ago-2014	Buy	8.638	2,011000	NYSE Euronext Lisbon	12.964.023
1-ago-2014	Buy	9.527	2,012000	NYSE Euronext Lisbon	12.973.550
1-ago-2014	Buy	9.043	2,013000	NYSE Euronext Lisbon	12.982.593
1-ago-2014	Buy	21.642	2,015000	NYSE Euronext Lisbon	13.004.235
1-ago-2014	Buy	2.696	2,016000	NYSE Euronext Lisbon	13.006.931
1-ago-2014	Buy	1.246	2,017000	NYSE Euronext Lisbon	13.008.177
1-ago-2014	Buy	30.076	2,018000	NYSE Euronext Lisbon	13.038.253
1-ago-2014	Buy	12.393	2,020000	NYSE Euronext Lisbon	13.050.646
1-ago-2014	Buy	1.225	2,022000	NYSE Euronext Lisbon	13.051.871
1-ago-2014	Buy	2.000	2,023000	NYSE Euronext Lisbon	13.053.871
1-ago-2014	Buy	1.129	2,033000	NYSE Euronext Lisbon	13.055.000
4-ago-2014	Buy	5.423	1,910000	NYSE Euronext Lisbon	13.060.423
4-ago-2014	Buy	3.361	1,928000	NYSE Euronext Lisbon	13.063.784
4-ago-2014	Buy	500	1,930000	NYSE Euronext Lisbon	13.064.284
4-ago-2014	Buy	2.521	1,935000	NYSE Euronext Lisbon	13.066.805
4-ago-2014	Buy	2.510	1,965000	NYSE Euronext Lisbon	13.069.315
4-ago-2014	Buy	1.750	1,966000	NYSE Euronext Lisbon	13.071.065
4-ago-2014	Buy	537	1,968000	NYSE Euronext Lisbon	13.071.602
4-ago-2014	Buy	2.036	1,969000	NYSE Euronext Lisbon	13.073.638
4-ago-2014	Buy	9.206	1,970000	NYSE Euronext Lisbon	13.082.844
4-ago-2014 4-ago-2014	Buy Buy	3.736 1.000	1,973000 1,975000	NYSE Euronext Lisbon NYSE Euronext Lisbon	13.086.580 13.087.580
4-ago-2014	Buy	20.646	1,977000	NYSE Euronext Lisbon	13.108.226
4-ago-2014	Buy	577	1,981000	NYSE Euronext Lisbon	13.108.803
4-ago-2014	Buy	4.267	1,982000	NYSE Euronext Lisbon	13.113.070
4-ago-2014	Buy	987	1,983000	NYSE Euronext Lisbon	13.114.057
4-ago-2014	Buy	1.990	1,987000	NYSE Euronext Lisbon	13.116.047
4-ago-2014	Buy	587	1,988000	NYSE Euronext Lisbon	13.116.634
4-ago-2014	Buy	500	1,990000	NYSE Euronext Lisbon	13.117.134
4-ago-2014	Buy	1.500	1,992000	NYSE Euronext Lisbon	13.118.634
4-ago-2014	Buy	16.712	1,993000	NYSE Euronext Lisbon	13.135.346
4-ago-2014	Buy	1.049	1,994000	NYSE Euronext Lisbon	13.136.395
4-ago-2014	Buy	14.641	1,996000	NYSE Euronext Lisbon	13.151.036
4-ago-2014	Buy	2.547	1,997000	NYSE Euronext Lisbon	13.153.583
4-ago-2014	Buy	2.330	1,998000	NYSE Euronext Lisbon	13.155.913
4-ago-2014	Buy	7.822	1,999000	NYSE Euronext Lisbon	13.163.735
4-ago-2014	Buy	12.036	2,000000	NYSE Euronext Lisbon	13.175.771
5-ago-2014	Buy	9.229	2,000000	NYSE Euronext Lisbon	13.185.000
5-ago-2014	Buy	10.115	2,022000	NYSE Euronext Lisbon	13.195.115
5-ago-2014	Buy	421	2,033000	NYSE Euronext Lisbon	13.195.536
5-ago-2014	Buy	9.464	2,034000	NYSE Euronext Lisbon	13.205.000
5-ago-2014	Buy	2.844	2,065000	NYSE Euronext Lisbon	13.207.844
5-ago-2014	Buy	684	2,069000	NYSE Euronext Lisbon	13.208.528
5-ago-2014	Buy	30.129	2,070000	NYSE Euronext Lisbon	13.238.657
5-ago-2014	Buy	16.343	2,071000	NYSE Euronext Lisbon	13.255.000
6-ago-2014 6-ago-2014	Buy Buy	5.500 2.689	2,015000 2,017000	NYSE Euronext Lisbon NYSE Euronext Lisbon	13.260.500 13.263.189
6-ago-2014	Buy	5.517	2,018000	NYSE Euronext Lisbon	13.268.706
6-ago-2014	Buy	60.563	2,020000	NYSE Euronext Lisbon	13.329.269
6-ago-2014	Buy	6.000	2,022000	NYSE Euronext Lisbon	13.335.269
6-ago-2014	Buy	23.284	2,023000	NYSE Euronext Lisbon	13.358.553
6-ago-2014	Buy	10.000	2,024000	NYSE Euronext Lisbon	13.368.553
6-ago-2014	Buy	5.078	2,026000	NYSE Euronext Lisbon	13.373.631
6-ago-2014	Buy	3.646	2,031000	NYSE Euronext Lisbon	13.377.277
6-ago-2014	Buy	23.866	2,033000	NYSE Euronext Lisbon	13.401.143
6-ago-2014	Buy	430	2,034000	NYSE Euronext Lisbon	13.401.573
6-ago-2014	Buy	3.380	2,037000	NYSE Euronext Lisbon	13.404.953
6-ago-2014	Buy	47	2,044000	NYSE Euronext Lisbon	13.405.000
7-ago-2014	Buy	300	1,896000	NYSE Euronext Lisbon	13.405.300
7-ago-2014	Buy	356	1,898000	NYSE Euronext Lisbon	13.405.656
7-ago-2014	Buy	9.683	1,899000	NYSE Euronext Lisbon	13.415.339
7-ago-2014	Buy	1.000	1,903000	NYSE Euronext Lisbon	13.416.339
7-ago-2014	Buy	1.007	1,924000	NYSE Euronext Lisbon	13.417.346
7-ago-2014	Buy	1.000	1,940000	NYSE Euronext Lisbon	13.418.346
7-ago-2014	Buy	250	1,981000	NYSE Euronext Lisbon	13.418.596
7-ago-2014	Buy	2.158	1,988000	NYSE Euronext Lisbon	13.420.754
7-ago-2014	Buy	8.649	2,011000	NYSE Euronext Lisbon	13.429.403
7-ago-2014	Buy	5.546	2,013000	NYSE Euronext Lisbon	13.434.949
7-ago-2014	Buy	6.359	2,014000	NYSE Euronext Lisbon	13.441.308
7-ago-2014	Buy	9.038	2,015000	NYSE Euronext Lisbon	13.450.346
7-ago-2014	Buy	9.599	2,017000	NYSE Euronext Lisbon	13.459.945
7-ago-2014	Buy	1.045	2,019000	NYSE Euronext Lisbon	13.460.990
7-ago-2014 7-ago-2014	Buy Buy	12.663	2,020000	NYSE Euronext Lisbon	13.473.653
		15.747	2,025000	NYSE Euronext Lisbon	13.489.400

Date	Type	Volume	Price (€)	Local	Nr of Shares
8-ago-2014	Buy	2.410	1,985000	NYSE Euronext Lisbon	13.491.810
8-ago-2014	Buy	355	1,989000	NYSE Euronext Lisbon	13.492.165
8-ago-2014	Buy	5.540	1,990000	NYSE Euronext Lisbon	13.497.705
8-ago-2014	Buy	5.300	1,991000	NYSE Euronext Lisbon	13.503.005
8-ago-2014	Buy	637	1,994000	NYSE Euronext Lisbon	13.503.642
8-ago-2014	Buy	1.358	1,998000	NYSE Euronext Lisbon	13.505.000
8-ago-2014	Buy	817	2,016000	NYSE Euronext Lisbon	13.505.817
8-ago-2014	Buy	619	2,017000	NYSE Euronext Lisbon	13.506.436
8-ago-2014	Buy	1.000	2,023000	NYSE Euronext Lisbon	13.507.436
8-ago-2014	Buy	4.000	2,033000	NYSE Euronext Lisbon	13.511.436
8-ago-2014	Buy	199	2,034000	NYSE Euronext Lisbon	13.511.635
8-ago-2014	Buy	2.490	2,035000	NYSE Euronext Lisbon	13.514.125
8-ago-2014	Buy	3.000	2,050000	NYSE Euronext Lisbon	13.517.125
8-ago-2014	Buy	4.372	2,051000	NYSE Euronext Lisbon	13.521.497
8-ago-2014	Buy	2.000	2,054000	NYSE Euronext Lisbon	13.523.497
8-ago-2014	Buy	1.676	2,056000	NYSE Euronext Lisbon	13.525.173
8-ago-2014	Buy	2.241	2,058000	NYSE Euronext Lisbon	13.527.414
8-ago-2014	Buy	16.083	2,060000	NYSE Euronext Lisbon	13.543.497
8-ago-2014	Buy	7.000	2,062000	NYSE Euronext Lisbon	13.550.497
8-ago-2014	Buy	3.000	2,063000	NYSE Euronext Lisbon	13.553.497
8-ago-2014	Buy	5.000	2,064000	NYSE Euronext Lisbon	13.558.497
8-ago-2014	Buy	6.503	2,087000	NYSE Euronext Lisbon	13.565.000
11-ago-2014	Buy	3.500	2,034000	NYSE Euronext Lisbon	13.568.500
11-ago-2014	Buy	5.000	2,040000	NYSE Euronext Lisbon	13.573.500
11-ago-2014	Buy	519	2,046000	NYSE Euronext Lisbon	13.574.019
11-ago-2014	Buy	1.992	2,047000	NYSE Euronext Lisbon	13.576.011
11-ago-2014	Buy	1.489	2,048000	NYSE Euronext Lisbon	13.577.500
11-ago-2014	Buy	3.000	2,050000	NYSE Euronext Lisbon	13.580.500
11-ago-2014	Buy	3.595	2,052000	NYSE Euronext Lisbon	13.584.095
11-ago-2014	Buy	405	2,053000	NYSE Euronext Lisbon	13.584.500
11-ago-2014	Buy	258	2,058000	NYSE Euronext Lisbon	13.584.758
11-ago-2014	Buy	3.000	2,062000	NYSE Euronext Lisbon	13.587.758
11-ago-2014	Buy	3.000	2,065000	NYSE Euronext Lisbon	13.590.758
11-ago-2014	Buy	662	2,079000	NYSE Euronext Lisbon	13.591.420
11-ago-2014	Buy	5.338	2,080000	NYSE Euronext Lisbon	13.596.758
11-ago-2014	Buy	4.000	2,082000	NYSE Euronext Lisbon	13.600.758
11-ago-2014	Buy	6.000	2,085000	NYSE Euronext Lisbon	13.606.758
12-ago-2014	Buy	225	2,029000	NYSE Euronext Lisbon	13.606.983
12-ago-2014	Buy	775	2,030000	NYSE Euronext Lisbon	13.607.758
12-ago-2014	Buy	115	2,032000	NYSE Euronext Lisbon	13.607.873
12-ago-2014	Buy	900	2,033000	NYSE Euronext Lisbon	13.608.773
12-ago-2014	Buy	5.185	2,034000	NYSE Euronext Lisbon	13.613.958
12-ago-2014	Buy	1.000	2,042000	NYSE Euronext Lisbon	13.614.958
12-ago-2014	Buy	3.000	2,047000	NYSE Euronext Lisbon	13.617.958
12-ago-2014	Buy	1.800	2,051000	NYSE Euronext Lisbon	13.619.758
12-ago-2014	Buy	308	2,052000	NYSE Euronext Lisbon	13.620.066
12-ago-2014	Buy	1.456	2,054000	NYSE Euronext Lisbon	13.621.522
12-ago-2014	Buy	2.736	2,057000	NYSE Euronext Lisbon	13.624.258
12-ago-2014	Buy	2.500	2,060000	NYSE Euronext Lisbon	13.626.758
12-ago-2014	Buy	2.500	2,062000	NYSE Euronext Lisbon	13.629.258
12-ago-2014	Buy	2.500	2,070000	NYSE Euronext Lisbon	13.631.758
12-ago-2014	Buy	2.500	2,071000	NYSE Euronext Lisbon	13.634.258
12-ago-2014	Buy	5.000	2,075000	NYSE Euronext Lisbon	13.639.258
12-ago-2014	Buy	365	2,083000	NYSE Euronext Lisbon	13.639.623
12-ago-2014	Buy	9.635	2,085000	NYSE Euronext Lisbon	13.649.258
12-ago-2014	Buy	5.000	2,091000	NYSE Euronext Lisbon	13.654.258
13-ago-2014	Buy	3.000	2,030000	NYSE Euronext Lisbon	13.657.258
13-ago-2014	Buy	686	2,036000	NYSE Euronext Lisbon	13.657.944
13-ago-2014	Buy	1.830	2,037000	NYSE Euronext Lisbon	13.659.774
13-ago-2014	Buy	3.484	2,038000	NYSE Euronext Lisbon	13.663.258
13-ago-2014	Buy	682	2,048000	NYSE Euronext Lisbon	13.663.940
13-ago-2014	Buy	2.318	2,049000	NYSE Euronext Lisbon	13.666.258
13-ago-2014	Buy	2.062	2,050000	NYSE Euronext Lisbon	13.668.320
13-ago-2014	Buy	4.000	2,053000	NYSE Euronext Lisbon	13.672.320
13-ago-2014	Buy	1.000	2,054000	NYSE Euronext Lisbon	13.673.320
13-ago-2014	Buy	5.938	2,055000	NYSE Euronext Lisbon	13.679.258
13-ago-2014	Buy	2.004	2,058000	NYSE Euronext Lisbon	13.681.262
13-ago-2014	Buy	5.519	2,062000	NYSE Euronext Lisbon	13.686.781
13-ago-2014	Buy	10.477	2,063000	NYSE Euronext Lisbon	13.697.258
13-ago-2014	Buy	5.000	2,064000	NYSE Euronext Lisbon	13.702.258
13-ago-2014	Buy	2.000	2,070000	NYSE Euronext Lisbon	13.704.258
14-ago-2014	Buy	2.500	2,031000	NYSE Euronext Lisbon	13.706.758
14-ago-2014	Buy	2.000	2,035000	NYSE Euronext Lisbon	13.708.758
14-ago-2014	Buy	2.000	2,040000	NYSE Euronext Lisbon	13.710.758
14-ago-2014	Buy	72	2,042000	NYSE Euronext Lisbon	13.710.830
14-ago-2014	Buy	557	2,045000	NYSE Euronext Lisbon	13.711.387
14-ago-2014	Buy	1.371	2,046000	NYSE Euronext Lisbon	13.712.758
14-ago-2014	Buy	3.000	2,050000	NYSE Euronext Lisbon	13.715.758
			2,078000	NYSE Euronext Lisbon	13.717.008
14-ago-2014	Buy	1.250

Date	Type	Volume	Price (€)	Local	Nr of Shares
14-ago-2014	Buy	4.750	2,082000	NYSE Euronext Lisbon	13.721.758
14-ago-2014	Buy	2.224	2,089000	NYSE Euronext Lisbon	13.723.982
14-ago-2014	Buy	500	2,098000	NYSE Euronext Lisbon	13.724.482
14-ago-2014	Buy	519	2,099000	NYSE Euronext Lisbon	13.725.001
14-ago-2014	Buy	7.481	2,100000	NYSE Euronext Lisbon	13.732.482
14-ago-2014	Buy	222	2,107000	NYSE Euronext Lisbon	13.732.704
14-ago-2014	Buy	4.519	2,108000	NYSE Euronext Lisbon	13.737.223
14-ago-2014	Buy	3.000	2,109000	NYSE Euronext Lisbon	13.740.223
14-ago-2014	Buy	1.535	2,110000	NYSE Euronext Lisbon	13.741.758
14-ago-2014	Buy	2.500	2,115000	NYSE Euronext Lisbon	13.744.258
29-set-2014	Buy	1.500	2,215000	NYSE Euronext Lisbon	13.745.758
29-set-2014	Buy	7.700	2,220000	NYSE Euronext Lisbon	13.753.458
29-set-2014	Buy	1.598	2,222000	NYSE Euronext Lisbon	13.755.056
29-set-2014	Buy	902	2,223000	NYSE Euronext Lisbon	13.755.958
29-set-2014	Buy	1.000	2,225000	NYSE Euronext Lisbon	13.756.958
29-set-2014	Buy	2.100	2,230000	NYSE Euronext Lisbon	13.759.058
29-set-2014	Buy	2.000	2,234000	NYSE Euronext Lisbon	13.761.058
29-set-2014	Buy	6.500	2,235000	NYSE Euronext Lisbon	13.767.558
29-set-2014	Buy	1.000	2,237000	NYSE Euronext Lisbon	13.768.558
29-set-2014	Buy	1.048	2,238000	NYSE Euronext Lisbon	13.769.606
29-set-2014	Buy	5.952	2,240000	NYSE Euronext Lisbon	13.775.558
29-set-2014	Buy	401	2,243000	NYSE Euronext Lisbon	13.775.959
29-set-2014	Buy	1.000	2,245000	NYSE Euronext Lisbon	13.776.959
29-set-2014	Buy	3.565	2,247000	NYSE Euronext Lisbon	13.780.524
29-set-2014	Buy	4.034	2,248000	NYSE Euronext Lisbon	13.784.558
29-set-2014	Buy	2.500	2,250000	NYSE Euronext Lisbon	13.787.058
29-set-2014	Buy	1.000	2,253000	NYSE Euronext Lisbon	13.788.058
29-set-2014	Buy	1.519	2,254000	NYSE Euronext Lisbon	13.789.577
29-set-2014	Buy	4.481	2,255000	NYSE Euronext Lisbon	13.794.058
29-set-2014	Buy	573	2,256000	NYSE Euronext Lisbon	13.794.631
29-set-2014	Buy	5.427	2,257000	NYSE Euronext Lisbon	13.800.058
29-set-2014	Buy	2.000	2,261000	NYSE Euronext Lisbon	13.802.058
29-set-2014	Buy	2.500	2,267000	NYSE Euronext Lisbon	13.804.558
29-set-2014	Buy	1.002	2,268000	NYSE Euronext Lisbon	13.805.560
29-set-2014	Buy	3.777	2,269000	NYSE Euronext Lisbon	13.809.337
29-set-2014	Buy	5.023	2,270000	NYSE Euronext Lisbon	13.814.360
29-set-2014	Buy	4.652	2,279000	NYSE Euronext Lisbon	13.819.012
29-set-2014	Buy	8.846	2,280000	NYSE Euronext Lisbon	13.827.858
30-set-2014	Buy	900	2,223000	NYSE Euronext Lisbon	13.828.758
30-set-2014	Buy	1.100	2,233000	NYSE Euronext Lisbon	13.829.858
30-set-2014	Buy	1.000	2,235000	NYSE Euronext Lisbon	13.830.858
30-set-2014	Buy	1.500	2,237000	NYSE Euronext Lisbon	13.832.358
30-set-2014	Buy	1.500	2,240000	NYSE Euronext Lisbon	13.833.858
30-set-2014	Buy	450	2,248000	NYSE Euronext Lisbon	13.834.308
30-set-2014	Buy	1.000	2,250000	NYSE Euronext Lisbon	13.835.308
30-set-2014	Buy	1.328	2,257000	NYSE Euronext Lisbon	13.836.636
30-set-2014	Buy	669	2,258000	NYSE Euronext Lisbon	13.837.305
30-set-2014	Buy	3.003	2,260000	NYSE Euronext Lisbon	13.840.308
30-set-2014	Buy	3.000	2,270000	NYSE Euronext Lisbon	13.843.308
30-set-2014	Buy	100	2,271000	NYSE Euronext Lisbon	13.843.408
30-set-2014	Buy	14.304	2,273000	NYSE Euronext Lisbon	13.857.712
30-set-2014	Buy	14.412	2,275000	NYSE Euronext Lisbon	13.872.124
30-set-2014	Buy	5.856	2,276000	NYSE Euronext Lisbon	13.877.980
30-set-2014	Buy	5.290	2,277000	NYSE Euronext Lisbon	13.883.270
30-set-2014	Buy	1.627	2,279000	NYSE Euronext Lisbon	13.884.897
30-set-2014	Buy	515	2,287000	NYSE Euronext Lisbon	13.885.412
30-set-2014	Buy	1.755	2,289000	NYSE Euronext Lisbon	13.887.167
30-set-2014	Buy	8.926	2,290000	NYSE Euronext Lisbon	13.896.093
30-set-2014	Buy	2.792	2,292000	NYSE Euronext Lisbon	13.898.885
30-set-2014	Buy	1.022	2,294000	NYSE Euronext Lisbon	13.899.907
30-set-2014	Buy	1.481	2,295000	NYSE Euronext Lisbon	13.901.388
30-set-2014	Buy	4.186	2,298000	NYSE Euronext Lisbon	13.905.574
30-set-2014	Buy	1.000	2,299000	NYSE Euronext Lisbon	13.906.574
30-set-2014	Buy	14.684	2,300000	NYSE Euronext Lisbon	13.921.258
30-set-2014	Buy	4.000	2,304000	NYSE Euronext Lisbon	13.925.258
30-set-2014	Buy	825	2,308000	NYSE Euronext Lisbon	13.926.083
30-set-2014	Buy	5.175	2,309000	NYSE Euronext Lisbon	13.931.258
30-set-2014	Buy	3.000	2,330000	NYSE Euronext Lisbon	13.934.258
30-set-2014	Buy	1.976	2,332000	NYSE Euronext Lisbon	13.936.234
30-set-2014	Buy	1.559	2,333000	NYSE Euronext Lisbon	13.937.793
30-set-2014	Buy	6.465	2,334000	NYSE Euronext Lisbon	13.944.258
1-out-2014	Buy	2.000	2,242000	NYSE Euronext Lisbon	13.946.258
1-out-2014	Buy	4.500	2,245000	NYSE Euronext Lisbon	13.950.758
1-out-2014	Buy	2.000	2,247000	NYSE Euronext Lisbon	13.952.758
1-out-2014	Buy	5.000	2,248000	NYSE Euronext Lisbon	13.957.758
1-out-2014	Buy	4.877	2,249000	NYSE Euronext Lisbon	13.962.635
1-out-2014	Buy	5.423	2,250000	NYSE Euronext Lisbon	13.968.058
1-out-2014	Buy	908	2,251000	NYSE Euronext Lisbon	13.968.966
1-out-2014	Buy	6.592	2,252000	NYSE Euronext Lisbon	13.975.558

1-out-2014	Buy	2.000	2,255000	NYSE Euronext Lisbon	13.977.558
1-out-2014	Buy	3.000	2,256000	NYSE Euronext Lisbon	13.980.558
1-out-2014	Buy	5.800	2,257000	NYSE Euronext Lisbon	13.986.358
1-out-2014	Buy	12.500	2,260000	NYSE Euronext Lisbon	13.998.858
1-out-2014	Buy	5.924	2,262000	NYSE Euronext Lisbon	14.004.782
1-out-2014	Buy	3.000	2,264000	NYSE Euronext Lisbon	14.007.782
1-out-2014	Buy	13.076	2,265000	NYSE Euronext Lisbon	14.020.858
1-out-2014	Buy	1.266	2,266000	NYSE Euronext Lisbon	14.022.124
1-out-2014	Buy	1.754	2,268000	NYSE Euronext Lisbon	14.023.878
1-out-2014	Buy	1.921	2,269000	NYSE Euronext Lisbon	14.025.799
1-out-2014	Buy	7.059	2,270000	NYSE Euronext Lisbon	14.032.858
1-out-2014	Buy	1.850	2,271000	NYSE Euronext Lisbon	14.034.708
1-out-2014	Buy	1.000	2,272000	NYSE Euronext Lisbon	14.035.708
1-out-2014	Buy	500	2,273000	NYSE Euronext Lisbon	14.036.208
1-out-2014	Buy	1.000	2,275000	NYSE Euronext Lisbon	14.037.208
2-out-2014	Buy	2.029	2,185000	NYSE Euronext Lisbon	14.039.237
2-out-2014	Buy	15.488	2,190000	NYSE Euronext Lisbon	14.054.725
2-out-2014	Buy	24.304	2,195000	NYSE Euronext Lisbon	14.079.029
2-out-2014	Buy	8.464	2,197000	NYSE Euronext Lisbon	14.087.493
2-out-2014	Buy	483	2,198000	NYSE Euronext Lisbon	14.087.976
2-out-2014	Buy	1.717	2,199000	NYSE Euronext Lisbon	14.089.693
2-out-2014	Buy	14.955	2,200000	NYSE Euronext Lisbon	14.104.648
2-out-2014	Buy	9.500	2,201000	NYSE Euronext Lisbon	14.114.148
2-out-2014	Buy	1.800	2,202000	NYSE Euronext Lisbon	14.115.948
2-out-2014	Buy	5.460	2,203000	NYSE Euronext Lisbon	14.121.408
2-out-2014	Buy	1.500	2,205000	NYSE Euronext Lisbon	14.122.908
2-out-2014	Buy	1.000	2,208000	NYSE Euronext Lisbon	14.123.908
2-out-2014	Buy	1.000	2,210000	NYSE Euronext Lisbon	14.124.908
2-out-2014	Buy	2.342	2,211000	NYSE Euronext Lisbon	14.127.250
2-out-2014	Buy	3.500	2,212000	NYSE Euronext Lisbon	14.130.750
2-out-2014	Buy	1.000	2,214000	NYSE Euronext Lisbon	14.131.750
2-out-2014	Buy	954	2,216000	NYSE Euronext Lisbon	14.132.704
2-out-2014	Buy	3.955	2,217000	NYSE Euronext Lisbon	14.136.659
2-out-2014	Buy	1.848	2,218000	NYSE Euronext Lisbon	14.138.507
2-out-2014	Buy	3.271	2,219000	NYSE Euronext Lisbon	14.141.778
2-out-2014	Buy	506	2,220000	NYSE Euronext Lisbon	14.142.284
2-out-2014	Buy	1.658	2,222000	NYSE Euronext Lisbon	14.143.942
2-out-2014	Buy	1.000	2,224000	NYSE Euronext Lisbon	14.144.942
2-out-2014	Buy	1.826	2,225000	NYSE Euronext Lisbon	14.146.768
2-out-2014	Buy	900	2,227000	NYSE Euronext Lisbon	14.147.668
2-out-2014	Buy	7.040	2,230000	NYSE Euronext Lisbon	14.154.708
10-out-2014	Buy	961	2,030000	NYSE Euronext Lisbon	14.155.669
10-out-2014	Buy	730	2,040000	NYSE Euronext Lisbon	14.156.399
10-out-2014	Buy	600	2,041000	NYSE Euronext Lisbon	14.156.999
10-out-2014	Buy	4.130	2,042000	NYSE Euronext Lisbon	14.161.129
10-out-2014	Buy	9.619	2,043000	NYSE Euronext Lisbon	14.170.748
10-out-2014	Buy	26.348	2,045000	NYSE Euronext Lisbon	14.197.096
10-out-2014	Buy	1.500	2,049000	NYSE Euronext Lisbon	14.198.596
10-out-2014	Buy	5.000	2,050000	NYSE Euronext Lisbon	14.203.596
10-out-2014	Buy	784	2,052000	NYSE Euronext Lisbon	14.204.380
10-out-2014	Buy	807	2,056000	NYSE Euronext Lisbon	14.205.187
10-out-2014	Buy	8.409	2,059000	NYSE Euronext Lisbon	14.213.596
10-out-2014	Buy	7.187	2,062000	NYSE Euronext Lisbon	14.220.783
10-out-2014	Buy	2.819	2,078000	NYSE Euronext Lisbon	14.223.602
10-out-2014	Buy	17.181	2,079000	NYSE Euronext Lisbon	14.240.783
10-out-2014	Buy	778	2,093000	NYSE Euronext Lisbon	14.241.561
10-out-2014	Buy	832	2,094000	NYSE Euronext Lisbon	14.242.393
10-out-2014	Buy	8.849	2,097000	NYSE Euronext Lisbon	14.251.242
10-out-2014	Buy	9.791	2,098000	NYSE Euronext Lisbon	14.261.033
10-out-2014	Buy	4.750	2,100000	NYSE Euronext Lisbon	14.265.783
10-out-2014	Buy	4.432	2,110000	NYSE Euronext Lisbon	14.270.215
10-out-2014	Buy	2.645	2,118000	NYSE Euronext Lisbon	14.272.860
10-out-2014	Buy	31.386	2,120000	NYSE Euronext Lisbon	14.304.246
10-out-2014	Buy	842	2,123000	NYSE Euronext Lisbon	14.305.088
10-out-2014	Buy	3.056	2,125000	NYSE Euronext Lisbon	14.308.144
10-out-2014	Buy	1.619	2,126000	NYSE Euronext Lisbon	14.309.763
10-out-2014	Buy	786	2,127000	NYSE Euronext Lisbon	14.310.549
10-out-2014	Buy	1.266	2,130000	NYSE Euronext Lisbon	14.311.815
10-out-2014	Buy	17.196	2,131000	NYSE Euronext Lisbon	14.329.011
10-out-2014	Buy	4.158	2,133000	NYSE Euronext Lisbon	14.333.169
10-out-2014	Buy	7.500	2,135000	NYSE Euronext Lisbon	14.340.669
10-out-2014	Buy	119	2,141000	NYSE Euronext Lisbon	14.340.788
10-out-2014	Buy	834	2,143000	NYSE Euronext Lisbon	14.341.622
		18.086	2,150000	NYSE Euronext Lisbon	14.359.708
10-out-2014	Buy

Pedro Miguel Matos Borges de Oliveira

ALTRI, SGPS, S.A.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2014 AND 2013

(Translation of financial statements originally issued in Portuguese – Note 45) (Amounts expressed in Euro)

ASSETS	Notes	31.12.2014	31.12.2013
NON CURRENT ASSETS:
Biological assets	11	105,158,777	107,122,952
Tangible fixed assets	7	384,285,503	390,512,538
Investment properties	8	456,936	460,627
Goodwill	9	265,531,404	265,531,404
Intangible assets	10	139,448	194,285
Investments in associated companies and joint ventures	4.2	9,058,140	8,642,309
Investments available for sale	4.3 and 6	10,691,197	14,656,909
Other non current assets	18	6,031,139	3,071,539
Deferred tax assets	12	27,541,201	31,165,814
Total non current assets		808,893,745	821,358,377
ACTIVOS CORRENTES:
Inventories	11	54,725,440	54,829,315
Customers	6, 13 and 32	88,868,133	80,294,638
Other debtors	6, 13 and 32	7,776,064	7,562,193
State and other public entities	15	15,629,003	20,223,728
Other current assets	16	2,508,606	3,454,873
Derivatives	6 and 28	-	1,204,184
Cash and cash equivalents	6 and 17	260,855,007	232,450,518
Total current assets		430,362,253	400,019,449
Total assets		1,239,255,998	1,221,377,826
SHAREHOLDERS' FUNDS AND LIABILITIES		31.12.2014	31.12.2013
SHAREHOLDERS' FUNDS:
Share capital	19	25,641,459	25,641,459
Legal reserve	19	3,405,143	2,862,981
Other reserves	19	205,680,587	157,811,081
Consolidated net profit / (loss)		37,381,548	55,347,961
Total shareholders' funds attributable to the parent company's shareholders		272,108,737	241,663,482
Non controlling interests	20	155,240	146,308
Total Shareholders' funds		272,263,977	241,809,790
LIABILITIES:
NON CURRENT LIABILITIES:
Bank loans	6 and 21	103,837,500	74,212,500
Other loans	6 and 21	278,276,931	439,370,297
Reimbursable subsidies	6 and 21	11,723,809	11,228,419
Other non current creditors	6, 23 and 31	404,350	404,350
Other non current liabilities	24	27,568,617	32,384,801
Deferred tax liabilities	12	15,283,810	17,896,214
Provisions	22	5,073,481	5,123,914
Total non current liabilities		442,168,498	580,620,495
CURRENT LIABILITIES:
Bank loans	6 and 21	77,228	78,693,353
Other loans	6 and 21	398,648,024	213,719,587
Reimbursable subsidies	6 and 21	9,082,810	71,008
Suppliers	6, 25 and 32	61,686,358	60,034,597
Other current creditors	6, 26 and 32	14,170,871	6,395,461
State and other public entities	15	4,351,443	1,914,156
Other current liabilities	27	34,904,492	31,630,830
Derivatives	6 and 28	1,902,297	6,488,549
Total current liabilities		524,823,523	398,947,541
Total shareholders' funds and liabilities		1,239,255,998	1,221,377,826

The accompanying notes form an integral part of the consolidated financial statements.

ALTRI, SGPS, S.A.

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS FOR THE YEARS ENDED 31 DECEMBER 2014 AND 2013

(Translation of financial statements originally issued in Portuguese – Note 45) (Amounts expressed in Euro)

	Notes	31.12.2014	31.12.2013
Sales	39	533.678.984	550.432.455
Services rendered	39	8.999.558	8.637.596
Other income	34	10.179.203	13.500.490
Cost of sales	11 and 32	(254.824.572)	(240.343.561)
External supplies and services	31 and 32	(152.039.869)	(151.340.687)
Payroll expenses	30 and 40	(29.777.623)	(27.376.287)
Amortisation and depreciation	37	(48.520.380)	(49.236.171)
Provisions and impairment losses	22	78.064	24.845
Other costs	35	(2.758.737)	(12.134.372)
Other indirect taxes	22	-	(3.422.651)
Gains and losses in associated companies and joint ventures	36	2.740.831	2.304.614
Financial expenses	36	(34.506.463)	(30.985.740)
Financial income	36	7.364.552	5.222.871
Profit before income tax		40.613.548	65.283.402
Income tax	12	(3.223.068)	(9.917.299)
Net profit		37.390.480	55.366.103
Consolidated net profit		37.390.480	55.366.103
Attributable to:
Parent company's shareholders	38	37.381.548	55.347.961
Non controlling interests	20	8.932	18.142
		37.390.480	55.366.103
Earnings per share:
Basic	38	0,18	0,27
Diluted	38	0,18	0,27

The accompanying notes form an integral part of the consolidated financial statements.

ALTRI, S.G.P.S., S.A.

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEARS ENDED 31 DECEMBER 2014 AND 2013

(Translation of financial statements originally issued in Portuguese – Note 45) (Amounts expressed in Euro)

	Notes	31.12.2014	31.12.2013
Net consolidated profit for the period		37,390,480	55,366,103
Other comprehensive income:
Items that will not be reclassified to profit or loss		-	-
		-	-
Items that may be reclassified to profit or loss
Change in fair value of cash flow hedging derivatives	28	1,440,725	7,981,650
Change in fair value of available for sale investments	4.3	34,285	(344,490)
		1,475,010	7,637,160
Other comprehensive income		1,475,010	7,637,160
Total comprehensive income for the period		38,865,490	63,003,263
Attributable to:
Shareholders' of the parent company		38,856,558	62,985,121
Non controlling interests	20	8,932	18,142

The accompanying notes form an integral part of the consolidated financial statements.

ALTRI, S.G.P.S., S.A.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED 31 DECEMBER 2014 AND 2013 (Translation of financial statements originally issued in Portuguese – Note 45)

(Amounts expressed in Euro)

			Attributable to the parent company's shareholders
	Notes		Share capital Legal reserve	Others reserves	Net profit	Total	Non controlling interests	Total shareholder's funds
Balance as of 1 January 2013 Appropriation of the consolidated net profit of 2012 Dividends distribution Others Total comprehensive income for the year Balance as of 31 December 2013	19 19	25.641.459 - - - - 25.641.459	2.862.981 - - - - 2.862.981	103.112.415 52.181.891 (5.128.293) 7.908 7.637.160 157.811.081	52.181.891 (52.181.891) - - 55.347.961 55.347.961	183.798.746 - (5.128.293) 7.908 62.985.121 241.663.482	128.166 - - - 18.142 146.308	183.926.912 - (5.128.293) 7.908 63.003.263 241.809.790
Balance as of 1 January 2014 Appropriation of the consolidated net profit of 2013 Dividends distribution Others Total comprehensive income for the year Balance as of 31 December 2014	19 42 42 19	25.641.459 - - - - 25.641.459	2.862.981 542.162 - - - 3.405.143	157.811.081 54.805.799 (8.615.530) 204.227 1.475.010 205.680.587	55.347.961 (55.347.961) - - 37.381.548 37.381.548	241.663.482 - (8.615.530) 204.227 38.856.558 272.108.737	146.308 - - - 8.932 155.240	241.809.790 - (8.615.530) 204.227 38.865.490 272.263.977

The accompanying notes form an integral part of the consolidated financial statements.

ALTRI , SGPS, S.A.

CONSOLIDATED CASH-FLOW STATEMENTS FOR THE YEARS ENDED 31 DECEMBER 2014 AND 2013

(Translation of financial statements originally issued in Portuguese – Note 45)

(Amounts expressed in Euro)

	Notes	2014		2013
Operating activities:
Collections from customers		533,210,945		580,037,895
Payments to suppliers		(409,260,630)		(401,730,330)
Payments to personnel		(29,586,593)		(23,684,163)
Other collections/payments relating to operating activities		8,984,629		(22,462,808)
Income tax		9,541,581	112,889,933	(20,046,760)	112,113,834
Cash flow from operating activities (1)			112,889,933		112,113,834
Investment activities:
Collections relating to:
Investments	17	3,707,361		48,000
Tangible fixed assets		-		501,077
Investment subsidies		9,912,368		2,215,222
Interest and similar income		7,713,817	21,333,546	4,048,871	6,813,170
Payments relating to:
Investments	17	-		(2,993,239)
Investment subsidies		(1,495,878)		(4,708,910)
Intangible assets		-		-
Tangible fixed assets		(37,762,699)	(39,258,577)	(14,516,983)	(22,219,132)
Cash flow from investment activities (2)			(17,925,031)		(15,405,962)
Financing activities:
Collections relating to:
Loans obtained		107,922,600	107,922,600	153,991,439	153,991,439
Payments relating to:
Interests and similar costs		(34,865,972)		(34,662,789)
Distributed dividends		(8,615,530)		(5,128,293)
Loans obtained		(131,000,000)	(174,481,502)	(89,160,943)	(128,952,025)
Cash flow from financing activities (3)			(66,558,902)		25,039,414
Cash and cash equivalents at the beginning of the year			232,371,780		110,624,494
Variation of cash and cash equivalents: (1)+(2)+(3)			28,405,999		121,747,286
Cash and cash equivalents at the end of the year	17		260,777,779		232,371,780

The accompanying notes form an integral part of the consolidated cash flow statement.

1. INTRODUCTORY NOTE

Altri, SGPS, S.A. ("Altri" or "Company") is a public company incorporated as of 1 March 2005, as a result of the reorganization process of Cofina, SGPS, S.A., has its head-office located at Rua General Norton de Matos, 68, r/c – Porto, Portugal and its shares are listed in the NYSE Euronext Lisbon Stock Exchange. Its main activity is the management of investments.

Altri is the parent company of a group of companies listed in Note 4 known as Altri Group. The current activity of Altri Group focuses on the production of bleached paper pulp of eucalyptus through three mills (Celbi in Figueira da Foz, Caima in Constância do Ribatejo and Celtejo in Vila Velha de Ródão).

Due to this reality of Altri Group, the Board of Directors believes that there is only one business segment (production and commercialization of bleached paper pulp from eucalyptus) and the management information is also analysed on this basis, for which the segmental information mentioned in Note 39 is limited by this.

The consolidated financial statements of Altri Group are presented in Euro rounded off to the unit, which is the currency used by the Group in its operations and considered as the functional currency. The operations of foreign companies whose functional currency isn't the Euro are included in the consolidated financial statements in accordance with the policy set out in Note 2.2.e).

2. MAIN ACCOUNTING POLICIES

The main accounting policies adopted in the preparation of the accompanying consolidated financial statements are as follows:

2.1 BASIS OF PRESENTATION

The accompanying consolidated financial statements have been prepared on a going concern basis from the books and accounting records of the companies included on the consolidation, which were prepared according to the International Financial Reporting Standards ("IFRS") as adopted by the European Union and under the historical cost convention, except for some financial instruments which are stated at fair value. These standards include International Financial Reporting Standards issued by the International Accounting Standards Board ("IASB"), International Accounting Standards ("IAS") issued by International Accounting Standards Committee ("IASC") and interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") or by the previous Standing Interpretations Committee ("SIC"), as adopted by the European Union. Standards and interpretations above mentioned will be generally presented as "IFRS".

The interim financial statements were presented quarterly, according to IAS 34 – "Interim Financial Reporting".

(i) Adoption of new, revised or amended standards and interpretations

The following standards, interpretations, amendments and revisions endorsed by European Union and with mandatory application in the financial years starting on or after January 1, 2014, were for the first time adopted in the year ended December 31, 2014:

Standard	Effective Date (annual periods beginning on or after)	Observations
IFRS 10 - Consolidated Financial Statements	01-jan-14	This standard is to establish requirements for the presentation of consolidated financial statements by the parent company, replacing, in these respects, IAS 27 - Consolidated and Separate Financial Statements and SIC 12 - Consolidation - Special Purpose Entities. This standard also introduces new rules concerning the definition of control and the determination of the scope of consolidation.
IFRS 11 - Joint Arrangements	01-jan-14	This standard replaces IAS 31 - joint Ventures and SIC 13 - Jointly Controlled Entities - Non Monetary Contributions by Ventuters and eliminates the possibility of using the proportional consolidation method in accounting for interests in joint ventures.
IFRS 12 – Ddisclosure of Interests in other entities	01-jan-14	This standard establishes a new set of disclosures relating to investments in subsidiaries, joint arrangements, associates and unconsolidated entities.
IAS 27 – Separate Financial Statements (2011)	01-jan-14	This amendment restricts the scope of IAS 27 to the separate financial statements.
IAS 28 – Iinvestments in Associates and joint ventures (2011)	01-jan-14	This amendment to ensure consistency betw een IAS 28 - Investments in Associates and new standards adopted, in particular IFRS 11 - Joint Arrangements.
Amendments: . IFRS 10 - Consolidated Financial Statements; . IFRS 12 - Disclosure of Interests in other entities (Investment activities)	01-jan-14	This amendment introduces na exemption from consolidation for certain entities that meet the definition of investment entity. It also determines rules for measurement of investments held by these investment entities.
IAS 32 (Amendment) - Offsetting Financial Assets and Financial Liabilities	01-jan-14	This amendment clarify the requirements relating to the offset of financial assets and financial liabilities.
IAS 36 (Amendment) - Impairement (Recoverable Amount Disclosures for Non Financial Assets)	01-jan-14	This amendment eliminates the disclosure requirements of the recoverable amount of a cash generating unit like goodw ill or intagible asstes w ith indefinite useful lives allocated to periods w here it w as not recorded any impairment loss or reversal of impairment. Introduces additional disclosure requirements for assets for w hich it w as recorded an impairment loss or reversal of impairment and the recoverable amount of these has been determined based on fair value less costs to sell.
IAS 39 (Amendment) - Financial Instruments: Recognition and Measurement (Novation of Derivatives and Continuation of Hedge Accounting)	01-jan-14	This amendment permits, the continuation of hedge accounting w hen a derivative designated as a hedging instrument is overhauled.
IFRIC 21 - Payments to the State	01-jan-14	This interpretation establish the conditions regarding the timing of recognition of a liability related to the payment to the State of a contribution by an entity as a result of a particular event (eg, participation in a particular market) w ithout the payment has by counterpart specified goods or services.

The effect in the consolidated financial statements of the Group for the year ended as of 31 December 2014, due to the adoption of the standards, interpretations, amendments and revisions mentioned above has not been significant.

(ii) Standards, interpretations, amendments and revisions that will take effect in future financial years

The following standards, interpretations, amendments and revisions, with mandatory application to future financial years, were, until the approval date of the accompanying financial statements, endorsed by the European Union:

Standard	Effective Date (annual periods beginning on or after)	Observations
Improvements to the Internacional Financial Reporting Standards (2011-2013)	01-Jan-15	These improvements involve the clarification of some aspects of IFRS 1 - First-time Adoption of International Financial Reporting Standards, IFRS 3 - Business Combinations, IFRS 13 - Fair Value Measurement and IAS 40 - Investment Property.

(iii) New standards and interpretations, amended or revised not adopted

The following standards, interpretations, amendments and revisions, with mandatory application to future financial years, until the approval date of the accompanying financial statements, were not endorsed by the European Union:

Standard	Observation
IFRS 9 - Financial Instruments (2009) and subsequent amendments	This amendment, under the revision of IAS 39, are to establish the requirements for the classification and measurement of financial assets and liabilities and for the application of hedge accounting rules.
IFRS 14 – Regulatory Deferral Accounts	This standard establish the reporting requirements, by entities who first adopt IFRS / IAS applicable to regulatory deferral accounts.
IFRS 15 – Revenue from Contracts with Costumers	This standard introduces a revenu recognition structure based on principles and based on a model to be applied to all contracts entered into with customers.
IFRS 11 – Joint Arrangements	This amendment clarifies the IFRS 3 and should be applied when an investor acquires an interest in a jointly controlled entity when it is a business as defined by this standard. The application of IFRS 3 is required in the acquisition of the initial interest and subsequent acquisition of interests.
Amendments: . IAS 16 - Property, Plant and Equipment; . IAS 38 - Intangible Assets.	The amendments clarify which methods of depreciation of tangible fixed assets and intangible assets that are allowed.
Amendments: . IAS 16 - Property, Plant and Equipment; . IAS 41 - Agriculture.	These amendments provide that bearer plants (eg vineyards, fruit trees, etc.) should be recorded as fixed assets.
IAS 19 –Employee Benefits (Amendment)	This amendment clarifies the circumstances under which employee contribution for post employment benefit plans are a reduction in the cost of short-term benefits.
Amendments to IFRS 10 - Consolidated Financial Statements and IAS 28 - Investments in Associates	These amendments delete an existing conflict between the standards, related to the sale or contribution of assets between the investor and the associate or jointly controlled entity.
IAS 27 – Separate Financial Statements (2011) - Amendment	This amendment introduces the possibility of applying the equity method, the valuation of investments in subsidiaries, associates and jointly controlled entities in the separate financial statements of an entity that presents consolidated financial statements.
Amendments to IFRS 10 - Consolidated Financial Statements, IFRS 12 - Disclosure of interests in other entities, and IAS 28 - Investments in associates and joint ventures (2011)	These amendments include the clarification of various aspects related to the application of the exception of consolidation by investment entities.
Amendment - IAS 1 – Presentation of Financial Statements (Disclosures)	This amendment introduces a set of instructions and guidelines to improve and simplify the disclosures in the context of current IFRS reporting requirements.
Improvements to International Financial Reporting Standards (cycles 2010-2012 and 2012-2014)	These improvements involve the review of several standards.

These standards have not been endorsed by the European Union, and as such, were not adopted by the Group in the year ended as of 31 December 2014. No significant impacts are expected to arise in the financial statements as a result of the adoption of these standards.

The accounting policies and measurement criteria adopted by the Group as of 31 December 2014 are consistent with those used in the preparation of the consolidated financial statements as of 31 December 2013.

In the preparation of the consolidated financial statements, in accordance with the IFRS, the Board of Directors adopted certain assumptions and estimates that affect the reported assets and liabilities, as well as the income and expenses in relation to the reported periods. All the estimates and assumptions made by the Board of Directors were made on the basis of its better existing knowledge, with reference to the date of approval of the financial statements, of the events and transactions in progress.

The accompanying consolidated financial statements have been prepared for appreciation and approval by the General Shareholders Meeting. The Group's Board of Directors believes that they will be approved without changes.

2.2 CONSOLIDATION POLICIES

The consolidation policies adopted by the Group in the preparation of the consolidated financial statements are as follows:

a) Investments in group companies

Investments in companies in which the Group owns, directly or indirectly, more than 50% of the voting rights at the Shareholders' General Meeting and is able to control the financial and operating policies so as to benefit from its activities (definition of control normally used by the Group), are included in the consolidated financial statements by the full consolidation method. Equity and net profit attributable to minority shareholders are shown separately, under the caption "Non-controlling interests", in the consolidated balance sheet and in the consolidated statement of profit and loss. Companies included in the consolidated financial statements by the full consolidation method are listed in Note 4.1.

The total integral income is attributed to the owners of the mother-company and to the non-controlling members even if by doing that, the company acquires a deficit balance at the level of non-controlling interests.

Under concentration processes, occurred after the transition date to International Financial Reporting Standards as adopted by the European Union (1 January 2004) the assets and liabilities of each subsidiary are measured at their fair value at the date of acquisition according to IFRS 3 - "Business Combinations". Any excess on the cost of acquisition over the fair value of the identifiable net assets and liabilities acquired is recognised as goodwill. Any excess of the fair value of the identifiable net assets and liabilities acquired over its cost is recognised as income in the profit and loss statement of the period of acquisition, after reassessment of the estimated fair value. Non-controlling interests are presented according to their share in the fair value of the identifiable assets and liabilities.

The results of subsidiaries acquired or disposed during the period are included in the consolidated statement of profit and loss from the effective date of acquisition or up to the effective date of disposal, respectively.

Adjustments to the financial statements of Group companies are performed, whenever necessary, in order to adapt its accounting policies to those used by the Group. All intercompany transactions, balances and distributed dividends are eliminated during the consolidation process.

Whenever the Group has, in substance, control over other entities created for a specific purpose ("Special Purpose Entities" – SPE's), even if no share capital interest is directly held in those entities, these are consolidated by the full consolidation method. As of 31 December 2014 there wasn't any ofthese types of entities in the consolidated financial statement.

b) Investments in joint ventures

Investments in joint companies (companies where the Group has a jointly control over the financial and operating decisions - usually corresponding to holdings of 50% in a company's share capital) are accounted for in accordance with the equity method.

According to the equity method, the investments in joint companies are initially recorded at acquisition cost, which is adjusted proportionally to the Group's corresponding share capital, as at the acquisition date or as at the date of the first adoption of the equity method. On a yearly basis, investments are adjusted in accordance with the Group's participation in the associated company's net income. Additionally, the dividends of this companies are recorded as a reduction in the investment's book value and the Group's proportion in the changes occurred in the associated company's equity are recorded as a change in the Group's equity.

Any excess of the cost of acquisition over the Group's share in the fair value of the identifiable net assets acquired is recognised as goodwill, which is included in the caption "Investments in joint companies". If that difference is negative it

is recorded as a gain in the caption "Gains and losses in joint companies" after reassessment of the fair value of the identifiable assets and liabilities acquired.

A valuation of investments held in joint companies is performed whenever there are signs of impairment in those investments. Impairment losses are recorded in the statement of profit and loss for the period. When those losses recorded in previous periods vanish, they are reverted in the statement of profit and losses for the period.

Unrealised gains arising from transactions with joint companies are eliminated to the extent of the group's interest in the joint against the investment held. Unrealised losses are eliminated but only to the extent that there is no evidence of impairment of the asset transferred.

Investments in joint companies are listed in Note 4.2.

c) Investments in associated companies

Investments in associated companies (companies where the Group has significant influence but has no control over the financial and operating decisions - usually corresponding to holdings between 20% and 50% in a company's share capital) are accounted for in accordance with the equity method.

According to the equity method, the investments in associated companies are initially recorded at acquisition cost, which is adjusted proportionally to the Group's corresponding share capital, as at the acquisition date or as at the date of the first adoption of the equity method. On a yearly basis, investments are adjusted in accordance with the Group's participation in the associated company's net income. Additionally, the dividends of the subsidiary are recorded as a reduction in the investment's book value and the Group's proportion in the changes occurred in the associated company's equity are recorded as a change in the Group's equity.

Any excess of the cost of acquisition over the Group's share in the fair value of the identifiable net assets acquired is recognised as goodwill, which is included in the caption "Investments in associated companies". If that difference is negative it is recorded as a gain in the caption "Gains and losses in associated companies" after reassessment of the fair value of the identifiable assets and liabilities acquired.

A valuation of investments held in associated companies is performed whenever there are signs of impairment in those investments. Impairment losses are recorded in the statement of profit and loss for the period. When those losses recorded in previous periods vanish, they are reverted in the statement of profit and losses for the period.

When the Group's share of losses of the associated company exceeds the investment's book value, the investment is recorded at nil value, except to the extent of the Group's commitments to the associate. In such case, the Group records a provision to cover those commitments.

Unrealised gains arising from transactions with associated companies are eliminated to the extent of the group's interest in the associate against the investment held. Unrealised losses are eliminated but only to the extent that there is no evidence of impairment of the asset transferred.

Investments in associated companies are listed in Note 4.2.

d) Goodwill

The differences between the price of investments in subsidiaries companies added the value of non-controlling interests, and the amount attributed to the fair value of the identifiable assets and liabilities at the time of their acquisition, when positive, are recorded under the caption "Goodwill", and, when negative, after a re-appreciation of its calculation, are recorded directly in the profit and loss statement. The differences between the price of investments in associated companies and in joint ventures and the amount attributed to the fair value of the identifiable assets and liabilities at the time of their acquisition, when positive, are recorded under the caption "Investments in associated companies", and, when negative, after a re-appreciation of its calculation, are recorded directly in the profit and loss statement.

The excess of the cost of acquisition of investments in foreign companies over the fair value of their identifiable assets and liabilities as at the date of acquisition is calculated using the local currency of each of those companies. Translation to the Group's currency (Euro) is made using the exchange rate as at the balance sheet date. Exchange rate

differences arising from this translation are recorded under the equity caption "Conversion reserves", included in the caption "Others reserves".

The Group will chose, on an acquisition-by-acquisition basis, to measure non-controlling interests either at their proportionate interest on the fair value of the assets and liabilities acquired, or at the fair value of the non-controlling interests themselves. Until 1 January 2010, non-controlling interests were always measured at their proportionate interest on the fair value of the acquired assets and liabilities.

Contingent consideration is recognized as a liability, at the acquisition-date, according to its fair value, and any changes to its value are recorded as a change in the "Goodwill", but only as long as they occur during the measurement period (until 12 months after the acquisition-date) and as long as they relate to facts and circumstances that existed at the acquisition date, otherwise these changes must be recognized in profit or loss.

Transactions regarding the acquisition of additional interests in a subsidiary after control is obtained, or the partial disposal of an investment in a subsidiary while control is retained, are accounted for as equity transactions impacting the shareholders' funds captions, and without giving rise to any additional "Goodwill" and without any gain or loss recognized.

The moment a sales transaction to generate a loss of control, should be derecognized assets and liabilities of the entity and any interest retained in the entity sold should be premeasured at fair value and any gain or loss calculated on the sale is recorded in results.

The Group tests on an annual basis the impairment of goodwill. The recoverable amount of the cash-generating units is computed based on the value of use. This computation implies the use of assumptions based on estimates of future events which may occur differently from expected.

e) Translation of financial statements of foreign companies

Assets and liabilities in the financial statements of foreign entities are converted to Euro using the exchange rates recorded at the balance sheet date. Profit and loss and cash flows are converted to Euro using the average exchange rate for the period. The exchange rate differences originated are recorded in the equity caption "Conversion reserves".

Goodwill and adjustments to the fair value arising from the acquisition of foreign subsidiaries are recorded as assets and liabilities of those companies and converted to Euro at the balance sheet date exchange rate.

Whenever a foreign company is sold, the accumulated exchange rate differences are recorded in the statement of profit and losses as a gain or loss associated with the sale.

2.3 MAIN ACCOUNTING POLICIES

The main accounting policies used in the preparation of the consolidated financial statements are as follows:

a) Intangible assets

Intangible fixed assets are recorded at cost, net of depreciation and accumulated impairment losses. Intangible assets are only recognised if it is likely that future economic benefits will flow to the Group, are controlled by the Group and if its cost can be reliably measured.

Development costs are recognised as an intangible asset if the Group has proven technical feasibility and ability to finish the development and to sell/use such assets and it is likely that those assets will generate future economic benefits. Development costs which do not fulfil these conditions are recorded as an expense in the period in which they are incurred.

Internal costs related with maintenance and development of software are recorded as expenses in the statement of profit and loss for the period in which they are incurred, except when these costs are directly attributable to projects for which the existence of future economic benefits is likely. Being this the case, they are capitalized as intangible assets.

Amortisation is calculated on a straight line basis, as from the date the asset is first used, over its expected useful life (usually 3 to 5 years).

b) Tangible fixed assets

Tangible fixed assets acquired until 1 January 2004 (IFRS transition date) are recorded at deemed cost, which corresponds to its acquisition cost, or its acquisition cost re-valued in accordance with generally accepted accounting principles in Portugal until that date, net of accumulated amortisation and accumulated impairment losses.

Tangible assets acquired after that date are recorded at acquisition cost, net of depreciation and accumulated impairment losses.

Depreciation is calculated on a straight line basis, as from the date the asset is first used, over the expected useful life for each group of assets.

The depreciation rates used correspond to the following estimated useful lives:

	Years
Land and natural resources	20 to 50
Buildings and other constructions	10 to 50
Plant and machinery	2 to 15
Vehicles	2 to 10
Office equipment	2 to 10
Other tangible assets	3 to 10

Maintenance and repair costs related to tangible assets which do not increase the useful life or result in significant benefits or improvements in tangible fixed assets are recorded as expenses in the period they are incurred.

Tangible fixed assets in progress correspond to fixed assets still in construction and are stated at acquisition cost, net of impairment losses. These assets are depreciated from the date they are concluded or ready to be used under the conditions and for the use established by the management.

Gains or losses arising from the sale or disposal of tangible assets are calculated as the difference between the selling price and the asset's net book value as at the date of its sale/disposal, and are recorded in the statement of profit and loss under the captions "Other income" or "Other expenses", respectively.

c) Investment Properties

Investment properties of the Group correspond to the properties (land or building or part of a building or both) that are not use in the Group's activities: in the production or supply of goods or services or for administrative purposes or held for sale in the ordinary course of business.

Initially, investment properties are recorded at acquisition cost (including transaction costs) and, subsequently, are recorded at acquisition or production cost, net of impairment losses.

d) Lease contracts

Classifying a lease as financial or as operational depends on the substance of the transaction rather than the form of the contract.

Lease contracts are classified as (i) a financial lease if the risks and rewards incidental to ownership lie with the lessee and (ii) as an operating lease if the risks and rewards incidental to ownership do not lie with the lessee.

Tangible fixed assets acquired under financial lease contracts and the corresponding liabilities are recorded in accordance with the financial method. Under this method, the cost of the fixed assets and the corresponding liability are reflected in the balance sheet. In addition, interests included in the lease instalments and depreciation of the fixed assets, calculated as explained in Note 2.3.b), are recorded in the statement of profit and loss of the period to which they apply.

The operational lease instalments on assets acquired under long-term rental contracts are recognized in full as expenses in the period to which they refer to.

e) Subsidies from Government or other public entities

Subsidies for personnel training programmes or production support are recorded in the statement of profit and loss caption "Other income" when attributed, independently of when they are received.

Non-repayable subsidies obtained to finance investment in tangible fixed assets are recorded as "Other non-current liabilities" and "Other current liabilities" corresponding to the instalments repayable in the long and short term, respectively. These subsidies are recognized in the statement of profit and loss in accordance with the depreciation of the related tangible fixed assets.

f) Impairment of assets, except for goodwill

Assets are assessed for impairment at each balance sheet date and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognized in the statement of profit and loss under the caption "Provisions and impairment losses".

The recoverable amount is the higher of an asset's net selling price and its value of use. The net selling price is the amount obtainable from the sale of an asset in an arm's length transaction less the costs of the disposal. The value of use is the present value of estimated future cash flows expected to arise from the continued use of an asset and from its disposal at the end of its useful life. Recoverable amounts are estimated for individual assets or, if not possible, for the cash-generating unit to which the asset belongs.

Reversal of impairment losses recognized in prior years is recorded when the Group concludes that the impairment losses previously recognized for the asset no longer exist or has decreased. The reversal is recorded in the statement of profit and loss as "Other income". However, the increased carrying amount of an asset due to a reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation and amortization) had no impairment loss been recognized for that asset in prior years.

g) Borrowing costs

Borrowing costs are recognised as expense in the statement of profit and loss for the period in which they are incurred, in an accrual basis.

When the Company contracts loans to specifically finance capital assets, the corresponding interests are capitalized, being part of the cost of the asset. The capitalization of these interests starts after the beginning of the preparation of the activities of construction, and ceases when the asset is ready for use or in case the project is suspended.

h) Inventories

Raw, subsidiary and consumable materials are stated at acquisition average cost, deducted from quantity discounts granted by suppliers, which is lower than its market value.

Finished and intermediate goods, sub-products and work in progress are stated at production cost, which includes the cost of raw materials, direct labour and production overheads, which is lower than market value. Therefore, harvested wood owned by the Group is valued at production cost, which includes the costs incurred with the cutting, gathering and transport of harvested wood, as well as the accumulated cost of plantations, maintenance and administrative expenses in proportion to the harvested area.

When necessary the Group companies record impairment losses to reduce inventories to its net realisable or market value.

i) Biological assets

Part of Altri's activity consists in in the cultivation of several species of forestry, especially eucalyptus, which are basically used as raw material for pulp production. At the end of the year, the plantations owned by the Group are classified in the caption "Biological assets". The forest lands owned by the Group are valued in accordance with accounting policy described in Note 2.3 b) and are classified in the caption "Tangible assets" of the consolidated financial statements.

Because of the inexistence of an active market of this forestry species in Portugal and given the impossibility of obtaining a reliable estimation of the present value of future cash flows generated by these biological assets, the Board of Directors opted to record biological assets at its historical cost, net impairment losses. This includes all the expenses incurred with plantation and with its development.

The cost of wood is transferred to production cost when the wood is harvested. The cost of wood harvested is determined based on the specific cost of each plantation attributed to each harvesting, which also includes the costs incurred on each plantation since the last harvesting.

Although it is not possible to estimate a reliable fair value of biological assets because of the reasons described above, the Board of Directors believes their fair value is higher than their book value. The Board has this understanding considering the fact that the forest management activity is concentrated in Altri Florestal S.A., which has been generating a recurring current balanced exploitation's activity. The industrial units of the Group purchase their raw material at similar prices to Altri Florestal as to third parties.

j) Provisions

Provisions are recognised when, and only when, the Group has an obligation (legal or constructive) arising from a past event, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of that obligation. Provisions are reviewed and adjusted at each balance sheet date to reflect the best estimate as of that date.

Restructuring provisions are recorded by the Group whenever a formal and detailed restructuring plan exists and has been communicated to the involved parties.

k) Pension complements

Some Group companies have assumed commitments to provide pension complements to employees retiring due to age or disability. To cover these liabilities there have been created autonomous pension funds, which annual charges, computed in accordance with actuarial analysis, are recorded in the statement of profit and loss in accordance with IAS 19 – "Employee benefits".

Any insufficiency of coverage by the autonomous pension funds that happened in order of rendered services is recorded as a liability in the financial statements of the Group.

When the financial situation of autonomous pension funds is superior to past services' responsibilities, Altri records an asset in its financial statements because this difference corresponds to less appropriations' necessities for pension funds in the future.

These liabilities were calculated under the "Projected unit credit method" under the actuarial and financial assumptions deemed to be the most adequate (Note 30).

From May 2014, the Group companies started to grant these pension supplements through defined contribution plans (except Celtejo, in which there are both situations). The Company's contribution is recognized as expense in the period.

l) Financial instruments

i) Investments

Investments held by the Group are divided into the following categories:

Investments held to maturity, are classified as non-current assets unless they mature within 12 months of the balance sheet date. The investments classified as held to maturity are non-derivative assets with defined or determinable payment dates, have defined maturity and the Group has the intention and ability to maintain them until the maturity date.

Investments measured at fair value through profit and loss are classified as current assets. The purpose of these investments is to obtain short term profits.

Investments available for sale are all the other investments that are not classified as held to maturity or measured at fair value through profit and loss, being classified as non-current assets.

Investments are initially measured at cost, which is the fair value of the price paid, including transaction costs if related with held to maturity and available for sale investments.

Investments available for sale and investments measured at fair value through profit and loss are subsequently measured at fair value by reference to the market value at the balance sheet date without any deduction for transaction costs which may be incurred until its sale. Investments in equity instruments which are not listed on a stock exchange market and whose fair value cannot be reliably measured are stated at cost net of impairment losses. Investments held to maturity are recorded at amortised cost, using the effective interest method.

Gains or losses arising from a change in the fair value of available for sale investments are recognised under the equity caption "Fair value reserve" included in caption "Other reserves", until the investment is sold or disposed, or until it is determined to be impaired, at which time the cumulative loss previously recognised in equity is transferred to profit and loss account for the period.

All purchases and sales of investments are recorded on its trade date, independently of the liquidation date.

ii) Accounts receivable

Receivables from "customers" and "other debtors" are stated at nominal value less impairment losses so that those receivables reflect its net realisable value. The current accounts receivable do not include interests because discount's impact is not considered immaterial.

Impairment is recognised if there is objective and measurable evidence that, as a result of one or more events that occurred, the balance will not be fully received. Therefore, each group company takes into consideration market information which shows the client default in their responsibilities', as well as historic information on outstanding debts not received.

Recognized impairment losses equals to the difference between the nominal value of the receivable balance and the correspondent present value of future estimated discounted cash-flows at the initial effective interest rate; when the payment is expected to occur in a period less than a year, the rate is considered null.

iii) Loans and non-current payable accounts

Loans and non-current payable accounts are recorded in liabilities by amortised cost, using the effective interest rate method. Financial expenses are calculated based on the effective interest rate and are recorded in the statement of profit and loss on an accrual basis. The portion of the effective interest charge relating to up-front fees and commissions, if not paid in the period, is added to the book value of the loan.

Assets and liabilities are compensated and presented for its net amount as long as there is the right for compulsory fulfilment of compensation and the Board of Directors intends to realise them on a net basis or realise the asset and simultaneously settle the liability.

iv) Accounts payable

Non-interest bearing accounts payable are stated at nominal value, once the discount effect is immaterial.

v) Derivatives

Altri Group uses derivatives to hedge its financial risks, which are not used for trading purposes.

Derivatives classified as cash flow hedging instruments are used by the Group mainly to hedge interest rates, exchange rates and pulp prices. The index, the computation conventions, the interest rate hedging instruments are similar to the ones established for the underlying loans and therefore are qualified as perfect hedging. The derivatives most used by the Group are the price indexations of pulp using future contracts.

The Group's criteria for classifying a derivative instrument as a cash flow hedging instrument are:

• the hedged transaction is expected to be highly effective in offsetting changes in cash flows attributable to the
• hedged risk;
• the effectiveness of the hedge can be reliably measured;
• there is adequate documentation of the hedging relationships at the inception of the hedge;
• the forecasted transaction that is being hedged is highly probable.

The cash flow hedging instruments are recorded at its fair value. Changes in the fair value of these instruments are recorded in assets or liabilities, against the corresponding entry under the equity caption "Hedging reserves", and transferred to the statement of profit and loss when the operation subjected to hedging affects the net profit.

The determination of the fair value of these financial instruments is made with informatic systems of derivatives valuation and had, on its basis the actualization, for the balance sheet date, of the future fix and variable leg cash flows of the derivative instrument.

Hedge accounting of derivatives is discontinued when the instrument matures or is sold. Whenever a derivative instrument can no longer be qualified as a hedging instrument, the fair value differences recorded and deferred in equity under the caption "Hedging reserves" are transferred to profit and loss of the period or to the carrying amount of the asset that resulted from the hedged forecast transaction. Subsequent changes in fair value are recorded in the income statement.

When embedded derivatives exist, they are accounted for as separate derivatives when the risks and the characteristics are not closely related to the economic risks and characteristics of the host contract and when these are not stated at fair value with gains and losses not realizable are recorded in the profit and loss statement.

When derivatives, although specifically contracted to hedge financial risks, do not fulfil the requirements listed above to be classified and accounted as hedging instruments, the changes in fair value are directly recorded in the profit and loss statement, as financial results.

vi) Financial liabilities and Equity instruments

Financial liabilities and equity instruments are classified and accounted for based upon their contractual substance. Equity instruments are those that represent a residual interest upon the Group's net assets and are recorded by the amount received, net of costs incurred with its issuance.

vii) Own shares

Own shares are recorded at acquisition cost as a deduction to equity captions. Gains or losses on its sale are recorded in the equity caption "Other reserves" not affecting the project and loss statement for the period.

viii) Discounted bills and accounts receivable transferred to factoring companies

Only when the assets´ cash flows contractual right has expired or when the risks and benefits inherent to those assets property are transferred to a third entity the Group derecognise the financial assets of its financial statements. If the Group retains substantially the risks and benefits inherent to the property of such assets, the Group continues to recognize them in its financial statements, by recording in the caption "Other loans" the monetary counterparty for the conceded assets.

In consequence, the customers balances formed by non-outstanding discounted bills and accounts receivable transferred to factoring companies as of the balance sheet date, with exception of the non-appealing factoring operations are recognized in the Group's financial statements until the moment of its collection.

ix) Cash and cash equivalents

Cash and cash equivalents include cash on hand, cash at banks on demand and term deposits and other treasury applications which reach maturity within less than three months and may be mobilized without significant risk of change in value.

For purposes of the consolidated statement of cash flows, "Cash and cash equivalents" caption also includes bank overdrafts, which are included in the balance sheet caption "Bank loans".

x) Assets classified as held for sale or in discontinuation

The assets and liabilities are classified as held for sale or in discontinuation, when their realization is made not by its use but by its sale. The Group classifies assets and liabilities in this caption when exists a high probability of its sale to become effective and the assets and liabilities are available for immediate sale. The Board of Directors is committed in the sale of the assets and liabilities recorded in this caption, and it is their understanding that the sale will be completed in the next twelve months.

The assets classified as held for sale or in discontinuation are valued at the lower of its accounting value at the date of the sale decision and its fair value deducted of their selling costs.

m) Contingent assets and liabilities

Contingent assets are possible assets arising from past events and whose existence will be confirmed, or not, by uncertain future events not controlled by the Company.

Contingent assets are not recorded in the consolidated financial statements but only disclosed when the existence of future economic benefits is likely.

Contingent liabilities are defined by the Company as (i) possible obligations that arise from past events and which existence will be confirmed, or not, by one or more occurrences of uncertain future events not controlled by the

Company, or (ii) present obligations that arise from past events but that are not recorded because it is unlikely that an outflow of resources occurs to settle the obligation or the obligation amount cannot be reliably measured.

Contingent liabilities are not recorded in the consolidated financial statements, being disclosed, unless the probability of a cash outflow is remote, in which case no disclosure is made.

n) Income tax

Income tax for the period is determined based on the taxable results of the companies included in the consolidation and takes into consideration deferred taxation.

Current income tax is determined based on the taxable results of the companies included in the consolidation, in accordance with tax regulations in force at the location of the head office of each Group company, considering the annual estimated income tax rate.

For some of the companies included in the consolidation of Altri Group by the full consolidation method, the income tax is determined in accordance with article 69 of the Corporate Income Tax Code (Código do Imposto sobre o Rendimento das Pessoas Colectivas), under the special regime of taxation of groups of companies.

Deferred taxes are computed using the balance sheet liability method and reflect the timing differences between the amount of assets and liabilities for accounting purposes and the correspondent amounts for tax purposes. Deferred taxes are computed using the tax rate that is expected to be in force at the time these temporary differences are reversed.

Deferred tax assets are only recorded when there is reasonable expectation that sufficient taxable profits will arise in the future to allow such deferred tax assets to be used. At the end of each period the company reviews its recorded and unrecorded deferred tax assets which are reduced whenever its realization ceases to be likely, or recorded if it is likely that taxable profits will be generated in the future to enable its recovery.

Deferred tax assets and liabilities are recorded in the statement of profit and loss, except if they relate to items directly recorded in equity. In these cases the corresponding deferred tax is recorded in the same equity captions.

o) Income recognition and accrual basis

Revenue arising from the sale of goods is recognized in the consolidated income statement when (i) the risks and benefits have been transferred to the buyer, (ii) the company retains neither continued management involvement in a degree usually associated with ownership nor effective control over the goods sold, (iii) the amount of the revenue can be measured reasonably, (iv) it is likely that the economic benefits associated with the transaction will flow to the Company, and (v) the costs incurred or to be incurred related with the transaction can be reliably measured. Sales are recorded net of taxes, discounts and other expenses arising from the sale, and are measured at the fair value of the amount received or receivable.

Dividends are recognized as income in the period its distribution is approved.

All other income and expenses are recognized in the period to which they relate, independently of when the amounts are received or paid. Differences between the amounts received and paid and the corresponding income and expenses are recorded in the captions "Other current assets", "Other current liabilities", "Other non-current assets" and "Other non-current liabilities".

When the actual amount of income or expenses is yet unknown, these are recorded based on the best estimate of the Board of Directors of the Group companies.

p) Balances and transactions expressed in foreign currencies

All assets and liabilities expressed in foreign currencies were converted to Euro using the exchange rates recorded on the balance sheet date.

Favourable and unfavourable exchange differences arising from changes in the exchange rates between those prevailing on the dates of the transactions and those recorded on the dates of payment, collection or as of the balance sheet date are recorded in the consolidated statement of profit and loss, except the ones related to nonmonetary values which fair value variation be directly recorded in equity.

q) Subsequent events

Post balance sheet date events that provide additional information about conditions that existed at the balance sheet data ("adjusting events"), are reflected in the consolidated financial statements. Post balance sheet date events that provide information about conditions that have only arise after the balance sheet date are considered "non-adjusting events" and are disclosed in the notes to the financial statements, if material.

r) Segment information

In each period, the Company identifies the most adequate segment division taking into consideration the business areas in which the Group is present.

At the moment, Altri Group has only one business segment (production and commercialization of bleached paper pulp from eucalyptus) for which the internal report of segmental information is analysed under this assumption.

s) Judgments and estimates

In preparing the consolidated financial statements in accordance with IAS / IFRS, the Group's Board of Directors has adopted certain assumptions and estimates that affect the reported assets and liabilities and income and expenses incurred for the periods reported. All estimates and assumptions made by the Board were made based on the best knowledge existing at the date of approval of the financial statements, events and transactions in progress.

The most significant accounting estimates reflected in the consolidated income statements include:

a)Useful lives of the tangible and intangible fixed assets;

• b)Impairment analysis of goodwill and of other tangible and intangible fixed assets, as well as financial investments;
• c)Recognition of impairment on assets, namely inventory and account receivables, and provisions;
• d)Pension Fund responsibilities calculation;
• e)Fair value of Derivative Financial Instruments; and
• f) Provisions.

Estimates used are based on the best information available during the preparation of consolidated financial statements and are on the best knowledge of past and present events. Although future events are neither controlled by the Group nor foreseeable, some could occur and have impact on the estimates. Changes to the estimates used by the management that occur after the date of these consolidated financial statements, will be recognised in net income, in accordance with IAS 8, using a prospective methodology.

2.4 FINANCIAL RISK MANAGEMENT

Altri´s Group is exposed essentially to the: (i) market risk; (ii) liquidity risk and (iii) credit risk. The main objective of the Board of Directors, regardingrisk management concerns, is to reduce these risks to a level considered acceptable for the development of the Group activities. The guiding lines of the risk management policy are defined by Altri´s Board of

Directors, which determines the acceptable risk limits. The operational concretization of the risk management policy is made by the Board of Directors and by the management of each participated company.

a) Market risk

At this level, a particular importance is given to interest rate risk, exchange rate risk, variability of the commodities' price risk and forest management and production of eucalyptus risk.

When considered necessary, the Group uses derivatives to persue its market risk management, in order to mitigate risks to which it is exposed, as a way of ensure its hedging. The Group does not use derivatives for negotiation nor speculation purposes.

i) Interest rate risk

The exposure of the Group to interest rate results of the long term loans constituted, mainly, by debt indexed to Euribor.

The Group uses derivatives or similar transactions for hedging interest rate risks considered significant. Three principles are used in the selection and determination of the hedging instruments of interest rate:

• For each derivative or hedging instrument used to protect the risk associated with a particular funding, there is coincidence between the dates of the flow of interests paid on loans to be hedged and the dates of liquidation under the hedging instruments;
• Perfect equivalence between the base rates: the indexing used in derivative or hedging instrument should be the same as that applicable to the financing or transaction that is being hedged; and
• Since the beginning of the transaction, the maximum cost of debt resulting from the hedging transaction undertaken, is known and limited, even in scenarios of extreme changes in interest rate markets.

Since the entire Altri debt is indexed to floating rates, interest rate swaps are used when it is considered necessary as a mean of protection against changes in future cash flows associated with interest payments. The interest rate swaps agreements have the economic effect of converting the loans linked to variable rates to fixed rates. Under these contracts the Group agrees with other parties (banks) to exchange, in pre-determined periods of time, the difference between the amount of interest calculated at the fixed rate and variable rate contracted at that time, with reference to the respective amounts previously agreed.

The counterparts of the hedging instruments are restricted to high credit quality financial institutions, since the Group policy priority is to contractthese instruments with banks that are also part of its financing operations. For purposes of determining the counterpart of specific operations. Altri requests proposals and indicative quotes from a representative number of banks to ensure adequate competitiveness of these operations.

When determining the fair value of hedging transactions, the Group uses certain methods, such as valuation models of options and discounted future cash flows, as well as certain assumptions that are based on the interest rate market conditions prevailing at the date of the consolidated financial statement position. Quotes of comparative financial institutions, for specific instruments, are used as reference for valuation.

The Board of Directors approves the terms and conditions of the relevant funding of the Group, analysing the structure of such debt, the risks and the different options available in the market, particularly regarding the type of interest rate (fixed / variable).

The Group objective is to limit the cash-flows and results volatility according to its operational activity through an adequate combination of fix and variable rate debt. The Group policy allows the use of interest rate derivatives in order to obtain a reduction of the exposure to Euribor variations and not to speculative purposes.

Most derivatives used by the Group in interest rate management are defined as cash-flow hedging instruments as these configure perfect hedging relations. The index, the computation conventions, the interest rate hedging instruments are similar to the ones established for the underlying loans. Nevertheless, there are some derivatives which, although have been contracted with a hedging interest risk objective, do not fulfil the requirements above defined for the hedging instruments classification.

The sensitivity analysis of the results of Altri to the changes in interest rate is in the Note 21.

ii)Exchange rate risk

The Group is exposed to exchange rate risk in transactions related with the finished goods sales in international markets with different currency from Euro.

Whenever the Board of Directors considers necessary to reduce the volatility of their results to the variability of exchange rates the exposition is managed through forwards or other exchange rate derivatives.

As of 31 December 2014 and 2013 the balances denominated in USD are as follows:

	31.12.2014	31.12.2013
Accounts receivable	13,340,951	14,196,014
Accounts payable	702,603	32,159
Bank deposits (Note 17)	5,644,642	26,600,326
Factoring (Note 21)	2,205,502	6,544,697
	21,893,698	47,373,196

Additionally, as of 31 December 2014 and 2013 the balances in a currency different from Euro and USD are as follows:

	31.12.2014	31.12.2013
Accounts payable	122,022	58,208
	122,022	58,208

The Board of Directors considers that eventual changes in exchange rates do not have a significant effect in the consolidated financial statements.

iii) Commodities price risk

By developing its activity in a commodity transactional industry (paper pulp), the Group is particularly exposed to its price fluctuations, with the correspondent impacts in its results. However, in order to manage this risk, paper pulp price fluctuations hedging contracts were celebrated by the adequate amounts by the foreseen operations, reducing the volatility of its results.

The increase/decrease of 5% in the pulp price commercialized by the Group during 2014 would have implied an increase/decrease on operational results, approximately of 20.88 million euro, without considering the effects of the pulp's derivatives (Note 28) and keeping everything else constant.

iv) Forest management and eucalyptus production risks

Altri, through its subsidiary Altri Florestal, has the management of a forest asset of about 84,000 hectares which 79% are eucalyptus. The forest is certified by FSC ® (Forest Stewardship Council ®3) and PEFC (Programme for the Endorsement of Forest Certification) entities that establish the principles and criteria for which is evaluated the sustainability of the forest's management in economic, environmental and social terms.

In this context, all forestry activity is directed towards the optimization of available resources while preserving the environmental stability and ecological values present in its assets and ensuring its development.

The risks associated with any forestry activity are also present in Altri Florestal's management. Forest fires, pests and diseases that can occur in forests spread through the country are the biggest risks facing this sector. These threats, if they occur, depending on its intensity, affect the normal function of the forest's exploration and the production's efficiency.

In order to prevent and reduce the impact of forest fires, Altri Florestal participates, together with the Portucel Soporcel, in a company called AFOCELCA that has the goal of providing, coordinating and managing the resources available for fire-fighting. At the same time, large investments are made to clean forest areas in order to reduce the risk of spread of the fires as well as mitigate its losses.

The emergence of pests and diseases can significantly reduce the growth of the forest productivity causing irreversible damages. To address these problems it was established integrated fight procedures by releasing specific parasitoids from Australia as well as through the use of phytopharmaceuticals products to control populations of insects and reduce the negative effects of its presence. On the other hand, in the areas more affected, Altri Florestal is using genetic material more suitable for new plantations which, by its characteristics, allow more resistance against these pests and diseases.

The increase/decrease of 5% in the wood price during 2014 would have implied an increase/decrease on operational results, approximately of 10.7 million euro, keeping everything else constant.

b) Liquidity risk

The purpose of liquidity risk management is to ensure, at all times, that the Group has the financial capacity to fulfil its commitments as they become due and to carry on its business activities and strategy through an adequate financing maturities management.

The Group pursues an active refinancing policy characterized by (i)maintaining high levels of free and immediate available resources to face short term necessities; and (ii) extending or sustainingthe debt maturity in accordance with the forecasted cash flows and leverage ability of the balance sheet.

The liquidity analysis' for financial instruments is disclosed next to the respective note to each financial liabilities class.

c) Credit risk

The Group is exposed to the credit risk in its current operational activity. This risk is monitored and controlled through a system that collects financial and qualitative information provided by recognized entities that supply credible risk information, which allows customers to evaluate the feasibility of the fulfilment of their obligations in order to reduce credit risk.

³ FSC-C004615

Credit risk evaluation is made on a regular basis, taking into consideration the current economic conjuncture conditions and the specific credit situation of each company, adopting corrective measures whenever necessary.

Credit risk credit is mitigated by the risk concentration management and by a careful selection of counterparties as well as by the credit insurance contracts celebrated with specialized institutions which cover a significant part of the credit granted as result of the activity developed by the Group.

The adjustments made to accounts receivable are calculated taking into consideration (i) the risk profile of the customer, (ii) the average collection period, and (iii) the customer's financial conditions.

The amounts included in the face of the consolidated statement of financial position are presented net of accumulated impairment losses, and therefore, at its fair value.

3. CHANGES IN ACCOUNTING POLICIES AND CORRECTION OF MISTAKES

During the year there were no changes in accounting policies and were identified no material mistakes related to previous years.

4. INVESTMENTS

4.1 INVESTMENTS IN SUBSIDIARIES

The companies included in the consolidated financial statements by the full consolidation method, its headquarters, percentage participation held and main activity as of 31 December 2014 and 2013, are as follows:

Company	Head Office		Percentage Held	Main Activity
		2014	2013
Parent-Company
Altri, SGPS, S.A.	Porto			Investment management
Subsidiaries
Altri Abastecimento de Madeira, S.A.	Figueira da Foz	100%	100%	Wood commercialization
Altri - Energias Renováveis, SGPS, S.A. (a)	Vila Velha de Ródão	-	99,83%	Holding
Altri Florestal, S.A.	Figueira da Foz	100%	100%	Forest management
Altri Sales, S.A.	Nyon, Sw itzerland	100%	100%	Group management support services
Altri, Participaciones Y Trading, S.L.	Vigo, Spain	100%	100%	Commercialization of pulp
Caima Energia – Empresa de Gestão e Exploração de Energia, S.A.	Constância	100%	100%	Production of energy
Caima Indústria de Celulose, S.A.	Constância	100%	100%	Production and commercialization of pulp
Captaraíz Unipessoal, Lda.	Figueira da Foz	100%	100%	Purchase and sale of properties
Celbinave – Tráfego e Estiva SGPS, Unipessoal, Lda. (a)	Figueira da Foz	-	100%	Freightage of ships
Celtejo – Empresa de Celulose do Tejo, S.A.	Vila Velha de Ródão	99,83%	99,83%	Production and commercialization of pulp
Celulose Beira Industrial (Celbi), S.A.	Figueira da Foz	100%	100%	Production and commercialization of pulp
Celulose do Caima, SGPS, S.A. (b)	Figueira da Foz	-	100%	Investment management
Inflora – Sociedade de Investimentos Florestais, S.A.	Figueira da Foz	100%	100%	Forest management
Invescaima – Investimentos e Participações, SGPS, S.A. (a)	Figueira da Foz	-	100%	Investment management
Pedro Frutícola, Sociedade Frutícola, S.A.	Constância	100%	100%	Agriculture production
Viveiros do Furadouro Unipessoal, Lda.	Óbidos	100%	100%	Production of plants in nurseries and services related w ith forests and landscapes

(a) Company merged in Celbi in the year ended December 31, 2014 (b) Company merged in Altri, SGPS, S.A. in the year ended December 31, 2014

All the above companies were included in the consolidated financial statements in accordance with the full consolidation method, as established in Note 2.2.a).

4.2 INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT VENTURES

The associated companies and joint ventures, percentage of capital held and main activity as of 31 December 2014 and 2013 are as follows:

Company		Percentage Held	Activity
	2014	2013
Associated Companies: Operfoz – Operadores do Porto da Figueira da Foz, Lda.	33.33%	33.33%	Harbor operations
Joint Ventures: EDP – Produção Bioeléctrica, S.A.	50%	50%	Energy production

These companies were included in the consolidated financial statements in accordance with the equity method, as explained in Note 2.2b) and Note 2.2.c).

The book value, total assets, equity and net profit for the year ended on 31 December 2014 for these companies were as follows:

Company	Book Value (a)	Total Assets	Equity	Net profit
Associated Companies Operfoz – Operadores do Porto da Figueira da Foz, Lda.	616.581	4.610.251	1.849.742	309.645
Joint Ventures EDP – Produção Bioeléctrica, S.A. (b)	8.441.559 9.058.140	133.402.227	22.255.252	4.867.928

(a) includes loans granted

(b) EDP – Produção Bioeléctrica, S.A. is holder of shares representing of 100% of capital of Ródão Power – Energia e Biomassa do Ródão, S.A.

The accounting policies used by these companies do not differ significantly from those used by Altri Group, fact that led to no accounting policies harmonization.

4.3 INVESTIMENTS AVAILABLE FOR SALE

As of 31 December 2014 and 2013 the investments available for sale and their book value as of that date, were as follows:

	Book Value
	2014	2013
Rigor Capital - Produção de Energia, Lda.	10.527.397	10.527.397
Other Investments	163.800	4.129.512
	10.691.197	14.656.909

Altri Group believes that the book value of investments available for sale, which include financial investments under 20% in companies where Altri Group has no significant influence on its management and are recorded at cost, net of impairment losses according to the accounting policy of the Note 2.3.l) i), does not differ significantly from its fair value. In the particular case of Rigor Capital - Produção de Energia, Lda., this assumption is based on a valuation prepared in accordance with the discounted cash flow model.

The caption "Other Investments" includes on December 31, 2013, listed shares which are recorded at market value amounting to 3.965.712 Euros which were sold in the year ended on 31 December, 2014. (Note 6)

5. CHANGES IN THE GROUP COMPANIES

During the year ended December 31, 2014 and 2013, there were no changes in the consolidation perimeter.

6. FINANCIAL INSTRUMENTS BY CLASS

Financial instruments, according to the policies described in Note 2.3.I), were classified as follow:

31 December 2014	Notes	Loans and receivables	Availables for sale	Derivatives	Total
Non current Assets
Investments available for sale	4.3	-	10.691.197	-	10.691.197
		-	10.691.197	-	10.691.197
Current Assets
Customers	13	88.868.133	-	-	88.868.133
Other debtors	14	7.776.064	-	-	7.776.064
Cash and cash equivalents	17	260.855.007	-	-	260.855.007
		357.499.204	-	-	357.499.204
		357.499.204	10.691.197	-	368.190.401
31 December 2013	Notes	Loans and receivables	Availables for sale	Derivatives	Total
Non current Assets
Investments available for sale	4.3	-	14.656.909	-	14.656.909
		-	14.656.909	-	14.656.909
Current Assets
Customers	13	80.294.638	-	-	80.294.638
Other debtors	14	7.562.193	-	-	7.562.193
Derivatives	28	-	-	1.204.184	1.204.184
Caixa e equivalentes de caixa	17	232.450.518	-	-	232.450.518
		320.307.349	-	1.204.184	321.511.533
		320.307.349	14.656.909	1.204.184	336.168.442

Annual Report 2014

IV. Notes to the Consolidated financial Statements

(Amounts stated in Euro)

31 December 2014	Notes	Financial Liabilities	Derivatives	Total
Non current liabilities
Bank Loans	21	103.837.500	-	103.837.500
Other Loans	21	278.276.931	-	278.276.931
Reimbursable subsidies	21	11.723.809	-	11.723.809
Other non current creditors	23	404.350	-	404.350
		394.242.590	-	394.242.590
Current liabilities
Bank Loans	21	77.228	-	77.228
Other Loans - short term	21	398.648.024	-	398.648.024
Reimbursable subsidies	21	9.082.810	-	9.082.810
Suppliers	25	61.686.358	-	61.686.358
Other current creditors	26	14.170.871	-	14.170.871
Derivatives	28	-	1.902.297	1.902.297
		483.665.291	1.902.297	485.567.588
		877.907.881	1.902.297	879.810.178
31 December 2013	Notes	Financial Liabilities	Derivatives	Total
Non current liabilities
Bank Loans	21	74.212.500	-	74.212.500
Other Loans	21	439.370.297	-	439.370.297
Reimbursable subsidies	21	11.228.419	-	11.228.419
Other non current creditors	23	404.350	-	404.350
		525.215.566	-	525.215.566
Passivos correntes
Bank Loans	21	78.693.353	-	78.693.353
Other Loans - short term	21	213.719.587	-	213.719.587
Reimbursable subsidies	21	71.008	-	71.008
Suppliers	25	60.034.597	-	60.034.597
Other current creditors	26	6.395.461	-	6.395.461
Derivatives	28	-	6.488.549	6.488.549
		358.914.006	6.488.549	365.402.555
		884.129.572	6.488.549	890.618.121

Financial instruments recognized at fair value

The following table details the financial instruments that are measured at fair value after initial recognition, grouped into three levels according to the degree to which the fair value is observable:

Level 1: fair value is measured based on active markets' prices;

Level 2: fair value is measured based on valuation techniques. The main inputs of the valuation models are observable in the market;

Level 3: fair value is measured based on valuation models, whose main inputs are not observable in the market.

	31.12.2014			31.12.2013
	Level 1	Level 2	Level 3	Level 1	Level 2	Level 3
Financial assets recorded at fair value:
Investments available for sale (Note 4.3)	-	-	-	3,965,712	-	-
Derivatives (Note 28)	-	-	-	-	1,204,184	-
Financial liabilities recorded at fair value:
Derivatives (Note 28)	-	1,902,297	-	-	6,488,549	-

In December 31, 2014 and 2013 there weren't any financial assets whose terms have been renegotiated and if they had not been renegotiated they would be overdue or impaired.

7. TANGIBLE FIXED ASSETS

During the years ended 31 December 2014 and 2013, the movement occurred in tangible fixed assets and the corresponding accumulated depreciation and impairment losses, was as follows:

					2014
					Gross assets
		Buildings and
		other	Plant and			Other tangible		Advances on account
	Land	constructions	machinery	Vehicles	Office equipment	assets	Work in progress	of fixed assets	Total
Opening Balance	26.708.802	104.142.183	955.503.841	3.409.092	10.248.878	14.247.674	8.995.973	583.212	1.123.839.655
Additions	303.323	897.677	5.439.396	704.211	59.382	26.190	35.429.653	-	42.859.832
Disposals	(97.847)	(405.746)	(54.172)	(39.493)	(237.056)	(123.859)	-	-	(958.173)
Transfers and w rite-offs	9.355	-	2.671.175	-	30.078	47.951	(3.080.288)	(73.323)	(395.052)
Closing balance	26.923.633	104.634.114	963.560.240	4.073.810	10.101.282	14.197.956	41.345.338	509.889	1.165.346.262
					Accumulated depreciation
		Buildings and
		other	Plant and			Other tangible
	Land	constructions	machinery	Vehicles	Office equipment	assets			Total
Opening Balance	7.492.997	86.891.472	613.193.500	2.860.382	9.682.772	13.205.994			733.327.117
Additions	315.441	1.263.256	46.027.905	296.555	175.507	245.778			48.324.442
Disposals	(74.960)	(107.200)	(14.026)	(33.696)	(237.056)	(123.862)			(590.800)
Closing balance	7.733.478	88.047.528	659.207.379	3.123.241	9.621.223	13.327.910			781.060.759
	19.190.155	16.586.586	304.352.861	950.569	480.059	870.046	41.345.338	509.889	384.285.503
					2013
					Gross assets
		Buildings and
		other	Plant and			Other tangible		Advances on account
	Land	constructions	machinery	Vehicles	Office equipment	assets	Work in progress	of fixed assets	Total
Opening Balance	26.682.948	104.438.534	944.046.667	3.415.961	10.157.480	14.262.079	5.552.520	583.212	1.109.139.401
Additions	29.655	3.055	3.626.821	155.519	82.673	52.029	11.470.677	-	15.420.429
Disposals	(11.181)	(299.406)	-	(162.388)	(5.307)	(66.434)	-	-	(544.716)
Transfers and w rite-offs	7.380	-	7.830.353	-	14.032	-	(8.027.224)	-	(175.459)
Closing balance
	26.708.802	104.142.183	955.503.841	3.409.092	10.248.878	14.247.674	8.995.973	583.212	1.123.839.655
	Accumulated depreciation
		Buildings and
		other	Plant and			Other tangible
	Land	constructions	machinery	Vehicles	Office equipment	assets			Total
Opening Balance	7.171.076	85.596.101	567.262.506	2.698.422	9.283.098	13.023.035			685.034.238
Additions	321.921	1.467.706	45.930.994	308.248	404.981	249.393			48.683.243
Disposals	-	(172.335)	-	(146.288)	(5.307)	(66.434)			(390.364)
Transfers and w rite-offs	-	-	-	-	-	-			-
Closing balance	7.492.997	86.891.472	613.193.500	2.860.382	9.682.772	13.205.994			733.327.117
	19.215.805	17.250.711	342.310.341	548.710	566.106	1.041.680	8.995.973	583.212	390.512.538

During the years ended 31 December 2014 and 2013 the amortisations amounted to 48,324,442 Euro and 48,683,243 Euro, respectively, and were recorded in the profit and loss statement in caption "Amortisation and depreciation" (Note 37).

The caption "Work in progress" as of 31 December 2014 and 2013 refers to the following projects:

	31-12-2014	31-12-2013
Improvement of the evaporation manufacturing facility	22.571.867	1.971.398
Increase of production capacity	16.999.692	3.157.719
Mill optimization	-	1.221.448
Others projects	1.773.779	2.645.408
	41.345.338	8.995.973

8. INVESTMENT PROPERTIES

The amount recorded in caption "Investment Properties" in December 31, 2014 and 2013 refers, essentially, to lands that are not used in the Group's activities.

The Board of Directors believes that the fair value of the investment properties is higher than their net book value.

The movements in caption "Investment properties" during the years ended as of 31 December 2014 and 2013 were as follows:

	2014	2013
	Gross assets	Gross assets
Opening Balance	803,046	803,046
Additions	78,988	-
Disposals	(42,807)	-
Closing balance	839,227	803,046
	Accumulated Amortisations	Accumulated Amortisations
Opening Balance	342,419	335,040
Additions	61,041	7,379
Disposals	(21,169)	-
Closing balance	382,291	342,419
Net amount	456,936	460,627

During the years ended as of 31 December 2014 and 2013 amortisations amounted to 61,041 Euro and 7,379 Euro, respectively, and were recorded in caption "Amortisation and depreciation" (Note 37).

9. GOODWILL

During 2014 and 2013 there were no movements in goodwill, being its composition as follows:

Celbi	253,391,251
Others	12,140,153
	265,531,404

Goodwill is not amortised. Impairment tests are made on an annual basis and whenever an event or a change in circumstances that reveals that the amount for which the asset is recorded could not be recoverable. Whenever the amount by which the asset is recorded is higher than its recoverable amount an impairment loss is recognized. The recoverable amount is the highest between the net sale price and the value of use. During 2014 and 2013, there were not recorded or reverted any impairment losses.

During 2014, in order to assess the existence or not of impairment on the main goodwill amount that resulted from Celulose Beira Industrial (Celbi), S.A.'s acquisition, in 2006, amounting to 253,391,251 Euro, the Group evaluated this subsidiary and concluded that there was no impairment. That valuation was based on Celbi's historical performance and an estimate of discounted cash flows based on a Celbi's 7-year business plan (since it is the Board's understanding that this is the most appropriate period given the cyclical nature of the operations of the Group) considering the long term price of paper pulp, not affected by the short term variations.

The main assumptions used in 2014 and 2013 in this calculation were:

2014	2013
0.50%	1.50%
7.90%	10.43%
2.00%	2.00%

The discount rate net of taxes (net of tax because the cash flow used in financial projections was also net of tax) used in 2014 was 7.9% (10.43% in 2013) and was calculated according to the WACC (Weighted Average Cost of Capital), considering the following assumptions:

	2014	2013
Risk-free interest rate	4.99%	6.68%
Equity risk premium	5.00%	6.00%
Debt risk premium	2.78%	2.50%

The Group made a sensitivity analysis of this valuation to variations in key assumptions, having concluded that if it had been considered a discount rate of 8.9% together with a null perpetual growth rate, the conclusion of no impairment of the affiliate Celbi would remain valid.

Regarding the remaining goodwill amounting to 12,140,153 Euro, in order to analyse the existence or not of impairment losses as of 31 December 2014, the Group made a comparison of net cash flows generated annually by each company, as well as market multiples with their net contributions to the consolidated financial statements including goodwill and concluded that there was no impairment.

10. INTANGIBLE ASSETS

During 2014 and 2013, the movement in intangible assets, as well as in the corresponding accumulated depreciation and impairment losses, was as follows:

		2014
		Gross assets
	Industrial
	property and		Other intangible
	other rights	Softw are	assets	Total
Opening balance	1.320	8.032.884	25.600	8.059.804
Additions	-	80.060	-	80.060
Disposals	-	-	-	-
Transfers and w rite-offs	-	-	-	-
	-	-	-	-
Closing Balance	1.320	8.112.944	25.600	8.139.864

	Accumulated depreciation
	Industrial property and other rights	Softw are	Other intangible assets	Total
Opening balance	1.320	7.838.599	25.600	7.865.519
Additions	-	134.897	-	134.897
Disposals	-	-	-	-
Transfers and w rite-offs	-	-	-	-
Closing Balance	1.320	7.973.496	25.600	8.000.416
	-	139.448	-	139.448

Annual Report 2014

IV. Notes to the Consolidated financial Statements

(Amounts stated in Euro)

	2013
		Gross assets
	Industrial property and		Other intangible
	other rights	Softw are	assets	Total
Opening balance	1.320	7.898.438	25.600	7.925.358
Additions	-	-	-	-
Disposals	-	-	-	-
Transfers and w rite-offs	-	134.446	-	134.446
Closing Balance	1.320	8.032.884	25.600	8.059.804

	Accumulated depreciation
	Industrial property and other rights	Softw are	Other intangible assets	Total
Opening balance	1.320	7.301.584	17.066	7.319.970
Additions	-	537.015	8.534	545.549
Disposals	-	-	-	-
Transfers and w rite-offs	-	-	-	-
Closing Balance	1.320	7.838.599	25.600	7.865.519
	-	194.285	-	194.285

In 2014 and 2013 the amortisations amounted to 134,897 Euro and 545,549 Euro, respectively, and were recorded in the profit and loss statement's caption "Amortisation and depreciation" (Note 37).

11. BIOLOGICAL ASSETS AND INVENTORIES

As of 31 December 2014 and 2013, the amount recorded in the caption "Biological assets" relates to forest and to plantation charges incurred by the Group and can be detailed as follows:

	31.12.2014	31.12.2013
Biological assets - gross value	105.538.783	107.502.958
Accumulated impairment losses in biological assets (Note 22)	(380.006)	(380.006)
	105.158.777	107.122.952

As of 31 December 2014 and 2013, the total area managed by Altri amounted to 84,000 hectares. The eucalyptus' area had the following age distribution:

	31.12.2014	31.12.2013
0 - 5 years	32.000	28.714
6 -10 years	22.193	30.507
> 10 years	11.908	7.553
	66.101	66.774

The rest of the area belongs to others residual forest species with minor importance.

As of 31 December 2014 and 2013 the caption "Inventories" was made up as follows:

	31.12.2014	31.12.2013
Raw , subsidiary and consumable materials	41.019.801	38.456.603
Work in progress	575.585	313.802
Finished and intermediate goods	18.016.209	20.945.066
	59.611.596	59.715.471
Accumulated impairment losses (Note 22)	(4.886.156)	(4.886.156)
	54.725.440	54.829.315

The cost of sales for the year ended 31 December 2014 amounted to 254,824,572 Euro and was computed as follows:

	Raw , subsidiary and consumable materials	Finished and intermediate goods	Work in progress	Biological assets	Total
Opening balance	38.456.603	20.945.066	313.802	107.502.958	167.218.429
Purchases	254.479.369	-	-	-	254.479.369
Inventory adjustment	(1.578.071)	-	-	(144.777)	(1.722.848)
Closing balance	(41.019.801)	(18.016.209)	(575.585)	(105.538.783)	(165.150.378)
	250.338.100	2.928.857	(261.783)	1.819.398	254.824.572

The cost of sales for the year ended 31 December 2013 amounted to 240,343,560 Euro and was computed as follows:

	Raw , subsidiary and consumable materials	Finished and intermediate goods	Work in progress	Biological assets	Total
Opening balance	34.825.150	17.872.209	329.076	108.414.774	161.441.209
Purchases	251.191.633	-	-	-	251.191.633
Inventory adjustment	(1.108.079)	2.312	-	(3.965.085)	(5.070.852)
Closing balance	(38.456.603)	(20.945.066)	(313.802)	(107.502.958)	(167.218.429)
	246.452.101	(3.070.545)	15.274	(3.053.269)	240.343.561

12. CURRENT AND DEFERRED TAXES

In accordance with current legislation, tax returns are subject to review and correction by the tax authorities during a fouryear period (five years for Social Security), except when there have been tax losses, there have been granted tax benefits, or tax inspections or claims are in progress, in which cases the periods may be extended or suspended. Therefore, the tax returns of Altri and its subsidiary and associated companies for the years 2011 to 2014 are still subject to review.

The Board of Directors of Altri believes that any potential corrections resulting from reviews/inspections of these tax returns by the tax authorities will not have a significant effect on the consolidated financial statements as of 31 December 2014 and 2013.

The movements occurred in deferred tax assets and liabilities in the years ended in 31 December 2014 and 2013 were as follow:

	2014
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1 January 2014	31.165.814	17.896.214
Effects on income statement:
Increases/(Decreases) in provisions not accepte	12.114	-
Harmonization of depreciation rates	968.953	-
Change of profit tax rate in Spain	(2.785.226)	(2.987.259)
Other effects	(1.073.985)	703.050
Total effect on income statement	(2.878.144)	(2.284.209)
Effect on shareholders funds:
Fair value of derivatives (Note 28)	(746.469)	(328.195)
Closing balance as of 31 December 2014	27.541.201	15.283.810

	2013
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1 January 2013 Effects on income statement:	33.357.371	16.931.978
Increases/(Decreases) in provisions not accepte	586.902	-
Harmonization of depreciation rates	780.766	-
Other effects	(1.009.682)	636.041
Total effect on income statement	357.986	636.041
Effect on shareholders funds:
Fair value of derivatives (Note 28)	(2.549.543)	328.195
Closing balance as of 31 December 2013	31.165.814	17.896.214

As of 31 December 2014 and 2013 the detail of deferred tax assets and liabilities, in accordance with the timing differences that originated them, was as follows:

		31.12.2014		31.12.2013
	Deferred tax assets	Deferred tax liabilities	Deferred tax assets	Deferred tax liabilities
Provision and impairment losses not accepted for tax purposes	3.011.768	-	2.999.654	-
Fair value of derivatives	62.096	-	2.032.500	328.195
Harmonization of accounting principles	9.941.595	-	8.972.642	-
Tax losses carried forw ard	13.926.877	-	17.177.112	-
Tax amortization of goodw ill	-	14.936.296	-	17.177.112
Other	598.865	347.514	(16.094)	390.907
	27.541.201	15.283.810	31.165.814	17.896.214

According to the legislation, the Group uses a deferred tax rate of 22.5% that results of the sum of the rate approved for 2015 and subsequent years which amounts to 21% plus the municipal surtax whose rate is 1.5% for except for deferred tax assets that result from tax losses carried forward, where it is used a rate of 21%. Regarding the subsidiary Altri, SL based in Spain the rate used in the calculation of deferred tax assets and liabilities was 25% since it is the tax rate approved to be in force in that country from January 1, 2015 (30% until 31 December 2014).

According to the legislation, for the year ending on December 31, 2014 the income tax rate was 23% (25% in 2013).

Additionally, according to the legislation during the year ending on December 31, 2014, state surtax correspond to the application of an additional tax of 3% on the portion of taxable income between 1.5 and 7.5 million Euro, of 5% on the portion of taxable income between 7.5 and 35 million Euro, and 7% on the portion of taxable income exceeding 35 million Euro.

On December 31, 2014 the Group evaluated the recognition of deferred taxes resulting from tax losses. In cases that originated deferred tax assets, these were only recorded to the extent that it is probable that taxable profits will arise in the future and they may be used to recover tax losses or deductible tax differences. On December 31, 2014 the deferred tax assets relating to tax losses are from Altri SL and taking into account the perspectives of tax income for the following years is conviction of Altri's Board of Directors that they are recoverable in full.

Income taxes recorded in the profit and loss statement for the years ended 31 December 2014 and 2013 can be detailed as follows:

	31.12.2014	31.12.2013
Current income tax Deferred income tax	(2.629.133) (593.935)	(9.639.244) (278.055)
	(3.223.068)	(9.917.299)

The reconciliation of the profit before tax to the income tax is as follows:

	31.12.2014	31.12.2013
Profit before tax	40.613.548	65.983.402
Tax rate (including municipal surtax)	24,50%	26,50%
	(9.950.319)	(17.485.602)
Tax benefits	11.013.360	13.247.089
State surtax	(1.374.693)	(3.218.219)
Other effects	(2.911.416)	(2.460.567)
Income tax	(3.223.068)	(9.917.299)

"Tax benefits" in 31 December, 2014 and 2013, correspond essentially to the use of the tax credit granted by the Portuguese State to Celulose Beira Industrial (Celbi), S.A. and Celtejo – Empresa de Celulose do Tejo, S.A. (only in 2013) under the tax incentive programme, to the investment in production's capacity increase (Note 21).

13. CUSTOMERS

As of 31 December 2014 and 2013 this caption can be detailed as follows:

	31.12.2014	31.12.2013
Customers, current accounts	89.132.659	82.146.755
Customers, doubtful debts	44.632	112.548
	89.177.291	82.259.303
Accumulated impairment losses (Note 22)	(309.158)	(1.964.665)
	88.868.133	80.294.638

The Group's exposure to credit risk is attributable mainly to the accounts receivable resulting from the Group's operating activity. The amounts recorded in the balance sheet are presented net of accumulated impairment losses for doubtful accounts that were estimated by the Group, in accordance with its experience and based on the economic environment evaluation. The Board of Directors believes that the recorded net amounts are close to their fair value; since these accounts receivable do not pay interest and the discount effect is immaterial.

As of 31 December 2014 and 2013, the age of customer's balances can be analysed as follows:

	31.12.2014	31.12.2013
Not due	72.698.705	63.456.667
Due w ith no impairment losses recorded
0 - 30 days	14.805.977	10.435.419
30 - 90 days	797.098	1.664.459
+ 90 days	566.353	4.738.093
	88.868.133	80.294.638

The Group contracted credit insurances to cover the recoverability risk from these accounts receivables as follows:

	31.12.2014	31.12.2013
With credit insurance	69.534.338	73.481.401
Without credit insurance	19.642.954	8.777.902
	89.177.292	82.259.303

The Group does not charge any interest as long as defined payment terms (in average 60 days) are met. Once that period ends, interest is charged in accordance with the contract and the applicable law to each particular situation, which only occurs in extreme situations.

The Board of Directors considers that the accounts receivable not overdue will be fully paid, taking into account the payment history and characteristics of the counterparties.

14. OTHER DEBTORS

As of 31 December 2014 and 2013 this caption can be detailed as follows:

	31.12.2014	31.12.2013
Advances to suppliers	-	6.548
Other debtors	10.039.419	9.830.797
	10.039.419	9.837.345
Accumulated impairment losses(Note 22)	(2.263.355)	(2.275.152)
	7.776.064	7.562.193

As of 31 December 2014 and 2013 the caption "Other debtors" includes, mainly, accounts receivable originated by the disposal of fixed assets, bail for leases and rents and accounts receivable for which impairment losses were recorded. Additionally, on December 31, 2014 this caption also included the amount receivable of 1,221,000 Euro (1,252,000 Euro as of 31 December, 2013) relative to the sale of Sócasca – Recolha e Comércio de Recicláveis, S.A.

As of 31 December 2014 and 2013, the age of the balances in "Other Debtors" can be analysed as follows:

	31.12.2014	31.12.2013
Not due	6.554.814	6.304.756
Due w ith no impairment losses recorded
0 - 30 days	-	-
30 - 90 days	-	-
> 90 days	1.221.250	1.257.437
	1.221.250	1.257.437
	7.776.064	7.562.193

The not due balances do not present any signs of impairment, the net accounting value of these assets is considered as being close to their fair value and their financial discount effect is not material.

The Board of Directors considers that the accounts receivable not overdue will be fully paid, taking into account the payment history and characteristics of the counterparties.

15. STATE AND PUBLIC SECTOR

As of 31 December 2014 and 2013 this caption can be detailed as follows:

Debtor balances	31.12.2014	31.12.2013
Income tax	6.937.154	9.220.451
Withholding taxes	26.155	1.781
Value added tax	8.391.616	10.761.968
Other taxes	274.078	239.528
	15.629.003	20.223.728
Creditors balances
Withholding taxes - dependent w ork	(1.116.430)	(1.271.963)
Social Secutity contributions	(489.313)	(466.874)
Value added tax	(2.726.639)	(2.838)
Other taxes	(19.061)	(172.481)
	(4.351.443)	(1.914.156)

The debtor balance of the caption "Income tax" on December 31, 2014 and 2013 corresponds to payments on account and special payments on account made, net of income tax of the year.

16. OTHER CURRENT ASSETS

As of 31 December 2014 and 2013 this caption can be detailed as follows:

	31.12.2014	31.12.2013
Accrued income:
Others	727.040	377.775
Deferred costs:
Rents paid in advance	1.317.256	1.839.221
Insurances paid in advance	266.976	437.907
Others costs paid in advance	197.334	799.970
	2.508.606	3.454.873

17. CASH AND CASH EQUIVALENTS

As of 31 December 2014 and 2013, the caption "Cash and cash equivalents" can be detailed as follows:

	31.12.2014	31.12.2013
Cash	15,551	17,331
Bank deposits	260,839,456 260,855,007	232,433,187 232,450,518
Bank overdrafts (Note 21)	(77,228)	(78,738)
Cash and cash equivalents	260,777,779	232,371,780

The caption "bank overdrafts" refers to credit balances in current accounts with financial institutions, included in the statement of financial position in the caption "bank loans" (Note 21).

According to Note 2.4) a) ii), on 31 December 2014 and 2013, the cash and cash equivalents balances in a non-euro currency amounted to 5,644,642 Euro and 26,600,326 Euro, respectively. Since these amounts corresponds to bank deposits on demand that are constantly moved, the exchange rate fluctuation effects on cash and cash equivalents held at the beginning and at the end of the years 2014 and 2013 for purposes of the statement of cash flows are immaterial.

The amounts received related with financial investments during the year ended 31 December 2014 are as follows:

	Amount of transaction	Amount received
EDP – Produção Bioelétrica, S.A. (a) Investments available for sale (Note 4.3) Sócasca –Recolha e Comércio de Recicláveis, S.A. (b)	2,325,000 1,351,836 2,300,000	2,325,000 1,351,836 30,525
	---------------	---------------
	5,976,836	3,707,361
	=========	=========

The amounts received related with financial investments during the year ended 31 December 2013 are as follows:

	Amount of transaction	Amount received
Sócasca – Recolha e Comércio de Recicláveis, S.A. (b)	2,300,000 ---------------	48,000 ---------------
	2,300,000 =========	48,000 =========

(a) – Reimbursement of loans

(b) – Company sold in 2011

During 2013, the financial investment payments resulted of the acquisition of investments available for sale (Note 4.3). During 2014, there weren't any payments relating to investments.

18. OTHER NON CURRENT ASSETS

As of 31 December 2014 and 2013 this caption can be detailed as follows:

	31.12.2014	31.12.2013
Value added tax (Note 22)	3.210.260	2.722.651
Rents paid in advance	2.820.879	348.888
	6.031.139	3.071.539

19. SHARE CAPITAL AND RESERVES

Share Capital

As of 31 December 2014, the Company's fully subscribed and paid up capital consisted of 205,131,672 shares with a nominal value of 12.5 cents of a Euro each.

As of 31 December 2014 and 2013, there were no entities holding more than 33% of the subscribed share capital.

Legal reserves

The Portuguese commercial legislation provides that at least 5% of the annual net profit must be used to reinforce the "Legal reserve" until this caption represents at least 20% of the share capital.

As of 31 December 2014 and 2013, the Company presented the amount of 3,405,143 Euro and 2,862,981 Euro of legal reserves, respectively, which cannot be distributed to shareholders unless the Company closes, although these reserves can be used to absorb losses after all other reserves are over, or incorporated in share capital.

Other reserves

	31.12.2014	31.12.2013
Hedging reserves Other reserves and retained earnings	(219.605) 205.900.192	(1.660.330) 159.471.411
	205.680.587	157.811.081

The caption "Hedging reserves" reflects the fair value of the derivative financial instruments classified as cash-flows hedging in the effective hedging component, net of the corresponding deferred tax effect (Note 28).

Under Portuguese legislation, the amount of distributable reserves is determined based on the non-consolidated financial statements of the Company, prepared in accordance with the International Financial Reporting Standards, as adopted by the European Union. As of 31 December 2014 distributable reserves amount to 32,046,913 Euro.

20. NON CONTROLLING INTERESTS

The amounts of this caption during the years ended 31 December 2014 and 2013 are as follow:

	31.12.2014	31.12.2013
Opening balance	146.308	128.166
Net profit attributable to non controlling interests	8.932	18.142
Closing balance	155.240	146.308

21. BANK LOANS, OTHER LOANS AND REIMBURSABLE SUBSIDIES

As of 31 December 2014 and 2013, the captions "Bank loans", "Other loans" and "Reimbursable subsidies" can be detailed as follows:

	2014
		Nominal Value			Book value
	Current	Non current	Total	Current	Non current	Total
Bank Loans	-	105.000.000	105.000.000	-	103.837.500	103.837.500
Bank overdrafts (Note 17)	77.228	-	77.228	77.228	-	77.228
Bank loans	77.228	105.000.000	105.077.228	77.228	103.837.500	103.914.728
Commercial paper	108.600.000	5.000.000	113.600.000	107.220.536	5.000.000	112.220.536
Bonds	251.300.682	275.000.000	526.300.682	250.704.640	273.276.931	523.981.571
Other loans	40.722.848	-	40.722.848	40.722.848	-	40.722.848
Other loans	400.623.530	280.000.000	680.623.530	398.648.024	278.276.931	676.924.955
Reimbursable subsidies	9.082.810	11.723.809	20.806.619	9.082.810	11.723.809	20.806.619
	409.783.568	396.723.809	806.507.377	407.808.062	393.838.240	801.646.302
			2013
		Nominal Value			Book value
	Current	Non current	Total	Current	Non current	Total
Bank Loans	78.877.288	75.000.000	153.877.288	78.614.615	74.212.500	152.827.115
Bank overdrafts (Note 17)	78.738	-	78.738	78.738	-	78.738
Bank loans	78.956.026	75.000.000	153.956.026	78.693.353	74.212.500	152.905.853
Commercial paper	181.900.000	66.000.000	247.900.000	181.497.235	65.207.880	246.705.115
Bonds	-	375.000.000	375.000.000	-	374.162.417	374.162.417
Other loans	33.347.002	-	33.347.002	32.222.352	-	32.222.352
Other loans	215.247.002	441.000.000	656.247.002	213.719.587	439.370.297	653.089.884
Reimbursable subsidies	71.008	11.228.419	11.299.427	71.008	11.228.419	11.299.427
	294.274.036	527.228.419	821.502.455	292.483.948	524.811.216	817.295.164

Bank loans

(i) Altri SL bank loan

In August 2006, the subsidiary Altri, S.L. signed a loan agreement with a bank syndicate amounting to 400,000,000 Euro with the purpose of buying 99.96% of the share capital corresponding to 100% of the voting rights of Celbi. On the date of the acquisition was given as guarantee the pledge of Celbi's shares. In 2007 this loan had an extraordinary amortization of 250,000,000 Euro, by that date the open debt amounted 150,000,000 Euro. Interest was payable half-yearly at the end of the period at an interest rate equal to 6 month Euribor plus a spread.

Annual Report 2014 IV. Notes to the Consolidated financial Statements (Amounts stated in Euro)

According to the contractual terms of this financing, banks could request the early repayment of the entire debt if there weren't achieved certain ratios of Net Debt/EBITDA and EBITDA/Debt Service. The repayment schedule for this loan was renegotiated during the year ended 31 December 2012, settling the payment in eleven half-year instalments, the first to be paid in February 2013 and the last in February 2018. As of 31 December 2013, this loan amounted to 73,790,322 Euro, which was liquidated in full at the beginning of 2014.

In February 25, 2014 Altri SL obtained a new bank loan with maximum limit of 25,000,000 Euro, with an interest rate equal to 6 month Euribor plus a spread, which has a six months' term, extendable for equal periods unless either part terminates the program with a pre-defined warning of 30 days before the due date or of the dates of its half-year renewals. On December 31, 2014, the outstanding debt was nil.

(ii) Celbi bank loan

During 2013 Celbi obtained a bank loan amounting to 75,000,000 Euro, which was renegotiated in June 2014, with an interest rate equal to 3 month Euribor plus a spread, whose payment will be made in 5 annual instalments of 5,000,000 each (the first of them in June of 2016) and a one last instalment of 50,000,000 in 2021. Therefore the total amount was classified as a non-current liability.

During the year ended December 31, 2014 Celbi contracted a bank loan of 30 million Euros, which bears interest at a rate equal to 3 month Euribor plus a spread. This loan will be repaid in 24 equal consecutive monthly installments, starting in July 2017, so the total amount of the loan is classified as non-current debt.

(iii) Bank overdrafts

As of 31 December 2014, the Group has bank overdrafts amounting to 15.5 million Euro which were not used (500,000 Euro in 31 December 2013).

(iv) Other bank loans

Commercial paper:

The Group has renewable commercial paper programs subscribed by several group companies in the maximum amount of 338,500,000 Euro as of 31 December 2014 (309,000,000 Euro as of 31 December 2013), with guaranteed placement, with interest payable at a rate equal to Euribor for the issuing period (7 to 364 days) plus a spread. As of 31 December 2014 the amount in use was 113,600,000 Euro (247,900,000 Euro as of 31 December 2013). The amount of 108,600,000 Euro is classified as current liability because, according to the contracts, both parties can terminate the program with a pre-defined warning of 30 to 60 days, although, if the programs are not terminated before maturity, they will only be repaid between years 2015 and 2019, of which the amount of 5,000,000 between the years 2017 and 2019, being the Board of Directors belief that there will be no early terminations from any parts to these commercial paper programs.

During the year ended on December 31, 2013, Celulose da Beira Industrial (Celbi), S.A. has signed a new commercial paper program in the maximum amount of 75,000,000 Euro with its disbursement to occur in February 2015, intended to the repayment of part of the bond loan Celbi 2007/2015. According to the initial contractual terms of this financing, the bank could request the early repayment of the entire debt, if there weren't achieved certain ratios of Net Debt/EBITDA and EBITDA/Debt Service. However, in February 2015, the contract was renegotiated, and all financial covenants were eliminated and the maturity was extended until 2022. At 31 December 2014 the amount in use was null.

In January 27, 2014 Celulose da Beira Industrial (Celbi), S.A. signed a new commercial paper program in the maximum amount of 100,000,000 Euro. This program which had the objective of supporting the repayment of the bond loan Celbi 2007/2015 was denounced in January 2015, and at the end of the year was not to be used.

Bond loans:

Celulose Beira Industrial (Celbi), S.A. issued, in February 2007, a 8-year bond loan amounting to 300,000,000 Euro repayable in 2015. Interest is payable half-yearly at the end of the period since the subscription date at a rate equal to 6 month Euribor plus a spread. In December 31, 2014, the liability related to this loan amounts to 251,300,682 Euro, because during the 2014 financial year, the Group has acquired own bonds in the amount of 48,699,318 Euro. In February 2015, this bond loan was fully repaid.

In the first semester of 2008 Celulose Beira Industrial (Celbi), S.A. issued two 10-year bond loans, amounting 50,000,000 Euro and 25,000,000 Euro, respectively. These loans have full repayment in 2018.

During the year ended in December 31, 2014, Celulose Beira Industrial (Celbi), S.A. issued two bond loans: a 5-year bond loan in the amount of 80,000,000 Euro, in March, and a 6-year bond loan in the amount of 50,000,000 Euro, in April. Regarding the latter, on 20 February 2015, Altri SGPS took over the contractual position held by its subsidiary Celbi, renaming the bond issuance to "ALTRI 2014/2020". In May 2014, Altri SGPS has issued a bond loan in the amount of 70,000,000 Euro due 2018.

In February 2015, Celbi issued bonds in the amount of 35 million Euros with a six year maturity.

The expenses incurred with the issuance of the loans are deducted to their nominal value and deferred and recognized as interest expenses during the period of the loan (Note 36).

Other loans:

(i) Factoring

The Group subscribed factoring contracts with two banks with one year of initial duration, according to which it may transfer accounts receivable up to 50,000,000 Euro, which are automatically renewed for equal periods if not terminated by one of the entities with at least 60 contractual days in advance. On the discounted amounts the Group will pay an interest rate equal to 3 month Euribor plus a spread. As of 31 December 2014 the value used amounted to 40,722,848 Euro (33,347,002 Euro as of 31 December 2013).

The Group believes that the risks and benefits associated to the accounts receivable were not transferred to the factoring entity, so they just remove the accounts receivable transferred to the factoring when the original debtor pays, in accordance with the accounting policy described in Note 2.3I) viii).

Reimbursable subsidies:

During 2006 it was submitted an application under the PRIME program within the scope of the pulp bleaching project on Celtejo mill. This investment had an estimated total amount of 72,000,000 Euro and was concluded in 2008. The financial grant was made up as follows: (i) a repayable benefit up to 15,323,000 Euro; (ii) a success fee similar to a non-repayable benefit with a maximum amount of 12,317,330 Euro that will be deducted to the repayable benefit mentioned in (i). The success fee will be awarded according to the fulfilment degree of the contract, determined in measurements to be made at the end of the years 2010, 2011 and 2013. Celtejo estimated the ratios contractually required for the year 2013 and concluded that those ratios were met giving a bonus of, approximately, 3,050,000 Euro which was classified as "Other noncurrent liabilities" and "Other current liabilities" (Notes 24 and 27) net of the amount recognized directly as income in the income statement (Note 34) in the proportion of the part of the tangible assets subsidized already depreciated according to the accounting policy described in Note 2.3 e).

In January 2007 Altri and Celbi signed a contract for granting financial and tax incentives under Decree-Law no. 203/2003 of 10 September, with AICEP (Agência para o Investimento e Comércio Externo de Portugal, E.P.E.) having the Portuguese Government considered of national interest PIN (Projecto de Interesse Nacional) this project to expand the production capacity of Celbi. The investment project run from 1 January 2007 to 30 June 2010 and the contract value is 320,000,000 Euro and the Portuguese Government will grant a financial incentive equal to 16.5% of the eligible expenses. If Celbi meets the proposed objectives measured at the end of 2009, 2010, 2013 and 2016 the Portuguese Government will give a success fee which will correspond to the non-repayment of up to 80% of the amount of the repayable incentive. The Portuguese Government also granted a tax benefit, corresponding to a tax credit amounting to 12% of relevant applications.

Annual Report 2014 IV. Notes to the Consolidated financial Statements (Amounts stated in Euro)

Until 31 December 2012 Celbi received the amount of 51,644,921 Euro concerning to the repayable incentive. During 2013 Celbi requested AICEP the anticipation of the 2013 evaluation, given the fact that during the year ended on 31 December 2012 Celbi already fulfilled the criteria's of 2013 measurement. AICEP agreed with the interruption of repayments, however there are some requirements which can only be evaluated in the measurement date. In 31 December 2013 all the requirements for the award of success fee amounting to 16,526,400 Euro were met, having Celbi classified this amount as "Other non-current liabilities" and "Other current liabilities" net of the amount recognized directly as income in the income statement (Note 34) in proportion of the part of the tangible assets subsidized already depreciated according to the accounting policy described in Note 2.3 e). On 31 December 2014 the amount outstanding of this subsidy is 8,632,454 Euro and is classified as non-current debt.

In January 2014 Celbi signed a new contract for granting financial and fiscal incentives under Decree Law. 203/2003, of 10 September, with the Agency for Investment and Foreign Trade of Portugal, EPE (AICEP), and the project of modernization and expansion of the plant, was considered by the Portuguese State of strategic interest and relevance to the national economy. The investment project began on August 19, 2013, and will run until June 30, 2015 and the contract value amounted to 30.251 million Euros. The Portuguese State will grant a refundable financial incentive corresponding to 20% of the costs eligible if Celbi complies with the proposed objectives measured in the late 2016, 2017 and 2019 the Portuguese state still will grant Achievement Award that correspond to non-repayment of up to 75% of the refundable incentive amount. The Portuguese State shall also allow tax incentive corresponding to a tax credit on corporate income tax in the amount of 15% of the relevant applications. Until December 31, 2014 Celbi received the amount of 3,055,689 Euros relating to the refundable incentive.

During 2011, Caima Indústria obtained a financial repayable benefit of 8,815,500 Euro, under Decree nr. 287/2007 granted by AICEP. The period of this investment was between 2010 and 2013. The granted benefit represents 45% of the eligible costs. The last portion of the benefit was received during 2014 and totalled 3,437,000 Euro. During 2013 a bonus of 627,128 Euro, was received, having in 2014 been repaid the amount of 71.008, so Caima Industria on 31 December 2014 had a debt related to this reimbursable incentive of 2,739,000 Euro, of which 450,399 Euro was classified as current debt.

Additionally, during 2014, Caima Indústria obtained a reimbursable incentive under the Decree-Law no. 287/2007 issued by the Agência para o Investimento e Comércio Externo de Portugal, for a global investment of 35,161,000 Euro. The investment period of the project shall extend between 2013 and 2015. The maximum reimbursable incentive amounts to 10,511,580 Euro. The Company has received 6,379,335 Euro, to be repaid between 2017 and 2020, and, at 31 December 2014, this amount is classified as non-current debt.

In the years ended 31 December 2014 and 2013 the Group sensitivity to the change of the interest rate index of more or less 1 basis point, measured as variation on net financial losses, not considering the hedging effects of the derivative financial instruments (Note 28), may be analysed as follows:

	31.12.2014	31.12.2013
Interests (Note 36)	18,943,968	19,043,419
Decrease of 1 b.p. in the interest rate applied to the entire debt	(7,857,000)	(8,100,000)
Increase of 1 b.p. in the interest rate applied to the entire debt	7,857,000	8,100,000

The sensitivity analysis above was calculated based on the exposure to the interest rate existing as of the date of the statement of financial position. This analysis considered as a basic assumption that the structure of financing (remunerated assets and liabilities) has remained stable throughout the year and similar to that presented at the end of each financial year.

The bank loans, other loans and reimbursable subsidies reimbursement plan as well as the associated interests are as follows:

				31.12.2014
	2015	2016	2017	2018	>2018	Total
Bank loans
Capital	-	5.000.000	5.000.000	12.500.000	82.500.000	105.000.000
Interests (a)	2.991.300	2.991.300	2.848.857	2.706.414	2.350.307	13.888.178
Bank overdrafts
Capital	77.228	-	-	-	-	77.228
Interests (a)	1.390	-	-	-	-	1.390
Commercial paper
Capital	108.600.000	-	5.000.000	-	-	113.600.000
Interests (a)	4.040.811	177.853	177.853	-	-	4.396.517
Bond loans
Capital	251.300.682	-	-	75.000.000	200.000.000	526.300.682
Interests (a)	6.038.322	5.267.667	5.267.667	5.267.667	3.831.030	25.672.353
Other loans
Capital	40.722.848	-	-	-	-	40.722.848
Interests (a)	601.069	-	-	-	-	601.069
Reimursable subsidies
Capital	9.082.810	558.872	3.115.183	3.051.390	4.998.364	20.806.619
Interests (a)	-	-	-	-	-	-
Total
Capital	409.783.568	5.558.872	13.115.183	90.551.390	287.498.364	806.507.377
Interests	13.672.892	8.436.820	8.294.377	7.974.081	6.181.337	44.559.507
	423.456.460	13.995.692	21.409.560	98.525.471	293.679.701	851.066.884
				31-12-2013
	2014	2015	2016	2017	>2017	Total
Bank loans
Capital	78.877.288	-	25.000.000	25.000.000	25.000.000	153.877.288
Interests (a)	7.282.952	3.844.674	4.260.687	3.141.318	1.881.113	20.410.744
Bank overdrafts
Capital	78.738	-	-	-	-	78.738
Interests (a)	1.417	-	-	-	-	1.417
Commercial paper
Capital	181.900.000	36.000.000	30.000.000	-	-	247.900.000
Interests (a)	7.598.691	2.282.607	1.203.954	-	-	11.085.252
Bond loans
Capital	-	300.000.000	-	-	75.000.000	375.000.000
Interests (a)	5.169.404	6.644.169	1.744.846	2.196.137	3.127.500	18.882.056
Other loans
Capital	33.347.002	-	-	-	-	33.347.002
Interests (a)	722.901	-	-	-	-	722.901
Reimursable subsidies
Capital	71.008	9.082.853	558.872	1.586.694	-	11.299.427
Interests (a)	-	-	-	-	-	-
Total
Capital	294.274.036	345.082.853	55.558.872	26.586.694	100.000.000	821.502.455
Interests	20.775.366	12.771.450	7.209.487	5.337.455	5.008.613	51.102.369
	315.049.402	357.854.303	62.768.359	31.924.149	105.008.613	872.604.824

(a) Considering the available information related to the interest rates evolution and that the capital repayment occurs in the end of each year.

22. ACCUMULATED PROVISIONS AND IMPAIRMENT LOSSES

The movements occurred in provisions and impairment losses during the years ended 31 December 2014 and 2013 can be detailed as follows:

	31.12.2014
	Provisions	Impairment losses in accounts receivable (Notes 13 and 14)	Impairment lossesin inventories and biological assets (Note 11)	Total
Opening balance	5.123.914	4.239.817	5.266.162	14.629.893
Increases	-	-	-	-
Utilizations	-	(1.639.673)	-	(1.639.673)
Reversals	(50.433)	(27.631)	-	(78.064)
Closing balance	5.073.481	2.572.513	5.266.162	12.912.156

	31.12.2013
	Provisions	Impairment losses in accounts receivable (Notes 13 and 14)	Impairment lossesin inventories and biological assets (Note 11)	Total
Opening balance	1.535.342	4.937.803	5.966.162	12.439.307
Increases	3.673.455	24.847	-	3.698.302
Utilizations	-	(507.220)	(700.000)	(1.207.220)
Reversals	(139.751)	(160.745)	-	(300.496)
Transfers	54.868	(54.868)	-	-
Closing balance	5.123.914	4.239.817	5.266.162	14.629.893

During the year ended at 31 December 2013 the subsidiary Caima - Indústria da Celulose, S.A., proceeded to the payment of an additional settlement of Value Added Tax to tax authorities of Germany from previous years in the amount of 2,722,651 Euro which was recorded under the caption "Other non-current assets" because the company does not agree with the fundamentals of the settlement (Note 18). During the month of January of 2014 Caima proceeded to an additional payment of Value Added Tax of approximately of 700,000 Euro. To face the risk of such settlements becoming definite, Altri recorded a liability, during 2013, under the caption "Provisions" against the caption "Other indirect taxes" of the profit and loss statement.

The amount recorded under the caption "Provisions", at 31 December 2014 and 2013, is the best estimate of the Board of Directors in order to face all the losses that may be supported due to claims in force.

23. OTHER NON CURRENT CREDITORS

As of 31 December 2014 and 2013 this caption is made up as follows:

31.12.2014 31.12.2013

Suppliers of fixed assets (Note 31.2) 404,350 404,350

24. OTHER NON CURRENT LIABILITIES

On 31 December 2014 and 2013 this caption refers totally to portions of investment subsidies to be recognized as income in the medium and long term (Notes 21 and 27) which are detailed as follows:

	31.12.2014			31.12.2013
	Current
	Total	(Note 27)	Non current	Total	(Note 27)	Non current
Celtejo
POE	1.504.943	557.395	947.548	2.062.338	557.395	1.504.943
PRIME	3.926.346	1.060.987	2.865.359	4.978.077	1.060.987	3.917.090
Other investment subsidies	-	-	-	143.287	-	143.287
	5.431.289	1.618.382	3.812.907	7.183.702	1.618.382	5.565.320
Celbi
PIN	25.621.960	3.039.485	22.582.475	28.774.668	3.039.485	25.735.183
	25.621.960	3.039.485	22.582.475	28.774.668	3.039.485	25.735.183
Caima Indústria
SIME	533.494	133.373	400.121	666.868	133.374	533.494
PRIME	-	-	-	108.318	108.318	-
QREN	501.703	62.713	438.990	564.417	62.713	501.704
Other investment subsidies	-	-	-	113.512	64.412	49.100
	1.035.197	196.086	839.111	1.453.115	368.817	1.084.298
Altri Florestal
Proder	395.719	61.595	334.124	-	-	-
	32.484.165	4.915.548	27.568.617	37.411.485	5.026.684	32.384.801

25. SUPPLIERS

As of 31 December 2014 and 2013 this caption is made up as follows:

			Payable
	31.12.2014	0-90 days	90-180 days	>180 days
Suppliers, current account	42.443.990	42.425.317	1.273	17.400
Suppliers, invoices in conference	19.242.368	19.242.368	-	-
	61.686.358	61.667.685	1.273	17.400
			Payable
	31.12.2013	0-90 days	90-180 days	>180 days
Suppliers, current account	45.540.200	45.540.200	-	-
Suppliers, invoices in conference	14.494.397	14.494.397	-	-
	60.034.597	60.034.597	-	-

As of 31 December 2014 and 2013 the caption "Suppliers" refers to accounts payable from the normal activities of the Group.

The Board of Directors understands that the book value of these debts is close to their fair value.

26. OTHER CURRENT CREDITORS

As of 31 December 2014 and 2013 the caption "Other current creditors" can be detailed as follows:

		Payable
31.12.2014	0-90 days	90-180 days	>180 days
6.241.656	6.208.322	8.749	24.584
7.929.215	7.496.366	37.134	395.715
14.170.871	13.704.688	45.883	420.299
		Payable
31.12.2013	0-90 days	90-180 days	>180 days
2.460.254	2.386.668	11.380	62.206
3.935.207	3.865.834	69.373	-
6.395.461	6.252.502	80.753	62.206

As of 31 December 2014 and 2013 the caption "Suppliers of fixed assets" includes the amounts of 153,763 Euro and 223,741 Euro, respectively, relating to financial leases (Note 31.2).

27. OTHER CURRENT LIABILITIES

As of 31 December 2014 and 2013 the caption "Other current liabilities" can be detailed as follows:

	31.12.2014	31.12.2013
Accrued expenses:
Amounts payable to employees	(3.274.976)	(3.233.946)
Interest payable	(4.524.803)	(3.841.772)
Rents	(1.588.671)	(1.605.477)
Costs w ith energy and gas	(5.854.874)	(5.667.141)
Discounts to be paid	(3.870.317)	(4.411.336)
Fluid rates to be paid	(1.099.212)	(1.079.823)
Other accrued expenses	(9.722.589)	(6.696.938)
Current deferred income:
Investment subsidies (Notes 21 and 24)	(4.915.548)	(5.026.684)
Others	(53.502)	(67.713)
	(34.904.492)	(31.630.830)

The caption "Other accrued expenses" in 2014 and 2013 corresponds to costs incurred with operational activities not yet settled.

28. DERIVATIVE FINANCIAL INSTRUMENTS

On December 31, 2014 the companies of the Group operated with contracts for derivatives related to hedge interest rate variations. On December 31, 2013 the companies of the Group operated with contracts for derivatives related to hedge pulp price's variations, interest and exchange rates, which are recorded according to their fair value.

Altri Group's companies only use derivatives to hedge cash flows associated with operations created related with their activities.

(i) Interest rate derivatives

In order to reduce its exposure to interest rates volatility, the Group signed interest rates swap contracts. These contracts were evaluated by their fair value as of 31 December 2014 and 2013, and the correspondent amount has been recognized under the caption "Derivatives".

As of 31 December 2014 and 2013 there were established derivatives contracts which total amounts are as follows:

				Fair Value	Fair Value
Type	Amount	Maturity	Rate	31.12.2014	31.12.2013
Interest rate sw ap (a)	25.000.000	08-02-2015	Pays a combination of several interest rates and receives Euribor 6M	(655.029)	(1.816.374)
Interest rate sw ap (b)	20.000.000	08-08-2014	Pays fixed interest rate and receives Euribor 6M	-	(614.399)
Interest rate sw ap (b)	80.000.000	09-02-2015	Pays fixed interest rate and receives Euribor 6M	(1.247.268)	(3.573.954)
				(1.902.297)	(6.004.727)

(a) Although these contracts were made with the purpose of risk hedging (and not speculation), these contracts do not fulfil every necessary requirements so they can be classified as hedging (Note 2.3l) v)), and therefore, the variation of their fair value was recorded in the profit and loss statement (Note 36).

(b) In accordance with the accounting policies adopted, these derivatives fulfil every requirement to be accounted as interest rate hedging instruments (Note 2.3I) v)).

The fair value of the Group's contracted derivatives is determined by the respective counterparts (financial institutions with whom such contracts were signed). The derivative valuation model, used by the counterparts is based on the discounted cash flows method, i.e., using the swaps par rates, listed in the interbank market and available at Reuters and Bloomberg, for the applicable periods where the forward rates and the discount factors used to discount the fixed cash flows (fix leg) and the variable cash-flows (variable leg) are computed. The sum of these two components results on the Net Present Value of the future cash flows or on the fair value of the derivatives.

At the beginning of 2015, in the date of their maturity, the derivatives were settled. The settlement value was very similar to the fair value at December 31, 2014.

(ii) Paper pulp price hedging derivatives

In order to reduce its exposure to volatility of paper pulp price volatility, the Group signed paper pulp price hedging derivatives, which were evaluated according to their fair value as of 31 December 2013; the correspondent amount was recognized under the caption "Derivatives". On December 31, 2014, these derivatives were already liquidated.

As of 31 December 2013 there were established the following paper pulp derivative contracts which total amounts are as follow:

		Fair Value
Hedged Quantity	Maturity	31.12.2013
1500 ton/month	31-08-2014	375.570
2000 ton/month	31-03-2014	(104.260)
2000 ton/month	30-09-2014	(379.562)
1000 ton/month	31-12-2014	402.324
1000 ton/month	31-12-2014	426.290
	Positive fair value	1.204.184
	Negative fair value	(483.822)
		720.362

The derivative fair value valuation of the paper pulp price hedging, contracted by the Group was performed by the respective counterparts (financial institutions with whom such contracts were signed). The derivative valuation model, used by these counterparts is based on the Discounted Cash Flows Method, i.e., it's calculated the difference between the

estimated paper pulp price (PIX) and the fixed price for the relevant periods, which is, afterwards, discounted to the valuation date.

In accordance with the adopted accounting policies, these paper pulp derivatives fulfil with the requirements to be classified as hedging instruments; so the variation on their fair value was recorded in the equity's caption "Hedging reserves".

(iii) Exchange rate derivatives

Altri uses exchange rate derivatives, mainly in order to hedge future cash flows. Thus Altri engaged some exchange rate forwards of U.S. dollars in order to manage the risk of exchange rate to which it is exposed.

On December 31, 2012, the fair value of exchange rate derivatives, calculated based on current market values of equivalent exchange rate financial instruments was 261,783 Euro, which ended during the year of 31 December 2013.

Determining the fair value of these financial instruments is based on the discount to the date of the statement of financial position of the amount that is estimated to be received / paid on the date of expiry of the contract. The settlement amount is considered in the assessment as being equal to the reference currency multiplied by the difference between the exchange rate settled and the market rate for the settlement date as of the date of valuation.

The movement occurred in the fair value of the financial instruments during the years ended 31 December 2014 and 2013 can be detailed as follows:

2014	Pulp price hedging derivatives	Interest rates derivatives	Exchange rates derivatives	Total
Opening balance	720.362	(6.004.727)	-	(5.284.365)
Derivatives fair value variation/cessation
Effects on shareholders funds (Note 19)	(720.362)	2.579.361	-	1.858.999
Effects on the profit and loss statement (Note 36)	-	1.523.069	-	1.523.069
Closing balance	-	(1.902.297)	-	(1.902.297)
2013	Pulp price hedging derivatives	Interest rates derivatives	Exchange rates derivatives
				Total
Opening balance	(8.696.330)	(13.417.466)	261.783	(21.852.013)
Derivatives fair value variation/cessation
Effects on shareholders funds (Note 19)	9.416.692	1.442.696	-	10.859.388
Effects on the profit and loss statement (Note 36)	-	5.970.043	(261.783)	5.708.260

The gains and losses of the year associated to the fair value variation, during 2014, of the hedging instruments in the nonmatured part (as described in IAS 39), in the amount of 1,858,999 Euro (10,859,388 Euro as of 31 December 2013), were directly recorded under equity's captions net of the respective deferred tax, in the amount of (418,274) Euro ((2,877,738) Euro as of 31 December 2013) (Notes 12 and 19).

The gains and losses for the year associated to the fair value variation, during 2014, of the hedging instruments in the matured part and of the instruments which although had been contracted with a hedging purpose, do not fulfil the requirements to be classified as so, and their ineffective part were recorded directly in the profit and loss statement for the year ended 31 December 2014 (Note 36).

29. CONTINGENT LIABILITIES AND GUARANTEES

As of 31 December 2014 and 2013, the bank guarantees provided by Group companies can be detailed as follows:

	31.12.2014	31.12.2013
AICEP/API (Note 21)	13.839.190	7.689.484
Others	1.468.674	476.996
	15.307.864	8.166.480

30. FINANCIAL COMMITMENTS NOT INCLUDED IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION

a) Pension Fund

Some of the Group companies have assumed commitments related with retirement pensions not included in the consolidated statement of financial position, since these commitments are covered by autonomous pension funds as follows.

The Caima and Altri Florestal Pension Fund, managed by "BPI Pensões - Sociedade Gestora de Fundos de Pensões, S.A." was created by a public deed held 31 December 1987, and aims to provide the employees who (i) at their normal retirement age or (ii) at the end of their contract with the company have completed at least 10 years of continuous service and 57 years old, with a monthly pension complement based on their average gross salary for the two years preceding the date of their retirement, beginning in the usual year of retirement. Following a decision of Caima's Board of Directors and after obtaining approval from "Instituto de Seguros de Portugal" (the Portuguese insurance institute), the Caima and Altri Florestal Pension Fund was divided into two independent funds in December 1998. During the year ended December 31, 2010, Caima and Altri Florestal transferred their shares of the collective fund that they had in BPI Pensões to Celtejo's plan. The transfer was requested to the Instituto de Seguros de Portugal, on September 23, 2010 and approved on March 3, 2011. In April 2011, the pension fund of Altri Florestal and Caima was incorporated in Celtejo's pension fund.

Under the set of laws of the Social Benefits Regulation, the employees of the permanent board of Celtejo with at least five years of continuous service, are entitled to a monthly pension complement after their retirement or if they become disabled. This complement is defined according with a formula that takes into consideration the net monthly salary applicable to the employee as of the retirement date and the number of years of continuous service, in a maximum of 30 years, also guarantying survival pensions to the employees' spouses and direct descendants. To cover those responsibilities there is an autonomous pension fund named Tejo Pension Fund.

In May 2014, the scheme associated to the Tejo Pension Fund has changed, passing from the defined benefit scheme to the defined contribution scheme. The Caima and Altri Florestal workers adherence to the defined contribution scheme was already achieved in 2014. The adherence of Celtejo employees is not yet complete on December 31, 2014, so at that date, both systems coexist.

Celbi grants to its workers, with non-defined term labour contract, who retire while working for Celbi, a set of benefits in accordance with the company's Rules for Pension Funds, published in the Republic Newspaper ("Diário da República") number 221-III series, dated 21 September 1999.

In accordance with those rules, Celbi grants the following benefits:

i) Retirement by age limit:

The participants that retire in the normal timing will be entitled to an annual pension, equal to 11.5% of the pensionable annual salary;

ii) Retirement due to disability:

Plan A – If the participant retires himself permanently due to disability by the normal regime of social security, or is accepted as so by the medical services of the company and the fund manager, the Fund secures the payment of a pension calculated in accordance with the following formulas:

Pension 1:

• 1. With less than 10 years of service 50% of the annual pensionable salary;
• 1. With 10 or more years of service 80% of the annual pensionable salary.
• The amount of the annual pension is deducted to the annual pension computed as described above.

Pension 2:

The participants will be entitled to an amount equal to one fifth of the monthly salary earned at the retirement date by each year of service.

Pension 3:

If the disability happens when the participant is more than 55 years old, to the amount referred to in Pension 2 is added 50% of the annual pensionable salary.

Plan B - If the participant retires himself permanently due to disability by the normal regime of social security, or is accepted as so by the medical services of the company and the fund manager, the Fund secures the payment of an annual pension equal to 11.5% of the pensionable annual salary.

Only the participants working for the company when the present change took place can benefit from Plan A. In relation to these workers and in relation to plans A and B the most favourable will be applicable. To the other participants is applicable the Plan B.

This regime applies to all Celbi's workers and in May 2014, the scheme associated to the Celbi Pension Fund has changed, passing from the defined benefit scheme to the defined contribution scheme.

In accordance with the latest actuarial valuation prepared by the funds' managers, the present value of the past service liabilities with retired and current employees as of 31 December 2014, 2013, 2012, 2011 and 2010 as well as the funds' patrimonial situation were as follows:

	2014
	Caima/Celtejo/Altriflorestal	Celbi	Total
Current responsabilities for past services	14,984,919	N.a.	14,984,919
Assets of pension funds	14,950,902	N.a.	14,950,902
	2013
	Caima/Celtejo/Altriflorestal	Celbi	Total
Current responsabilities for past services	15,100,475	7,951,521	23,051,996
Assets of pension funds	15,096,391	8,140,208	23,236,599
	2012 Caima/Celtejo/Altriflorestal	Celbi	Total
Current responsabilities for past services	14,926,583	7,526,613	22,453,196
Assets of pension funds	15,262,570	7,767,609	23,030,179
	2011
	Caima/Celtejo/Altriflorestal	Celbi	Total
Current responsabilities for past services	14,884,715	6,933,935	21,818,650
Assets of pension funds	14,789,841	7,095,598	21,885,439
	2010
	Caima/Celtejo/Altriflorestal	Celbi	Total
Current responsabilities for past services	13,954,156	6,771,450	20,725,606
Assets of pension funds N.a. – Not aplicable	14,085,096	7,667,099	21,752,195

The movement in the present value of responsibilities for past services during the years ended 31 December 2014 and 2013 is as follows:

	2014	2013
Responsabilities in the beginning of the year	23.051.996	22.453.196
Change of the Celbi Fund to defined contribution	(7.951.521)	-
Benefits paid by the Pension Funds	(822.040)	(863.237)
Current services cost	189.576	434.227
Interest costs	707.067	998.646
Actuarial (gains)/losses	(190.159)	29.164
Responsabilities in the end of the year	14.984.919	23.051.996

The movement verified on pension funds' patrimonial situation during the years ended 31 December 2014 and 2013 is as follows:

	2014	2013
Pension funds value at the beginning of the year	23.236.599	23.030.179
Change of the Celbi Fund to defined contribution	(8.140.208)	-
Pensions paid	(822.040)	(863.237)
Return on fund's assets	676.551	1.135.118
Others	-	(65.461)
Pension funds value at he end of the year	14.950.902	23.236.599

The responsibilities of Celtejo Pension Plan are based, at December 31, 2014, in the following assumptions:

• (i) Calculation method "Projected Unit Credit"
• (ii) Mortality Tables TV 88/90;
• (iii) Disability Tables EKV-80;
• (iv) Income/discount Rate 4.5%;
• (v) Growth Wage Rate 0%

Characteristics of Celtejo Pension Fund:

• (i) Portfolio composition:
• a. 13.64% shares;
• b. 68.39% bonds at fixed rates;
• c. 9.86% bonds at variable rates;
• d. 10.11% liquidity and other assets.
• (ii) Expected return of the assets of the Plan in the long run 4.5%

The responsibilities of Celbi Pension Plan are based, at December 31, 2013, in the following assumptions:

• (i) Calculation method "Projected Unit Credit"
• (ii) Mortality Tables GKF95;
• (iii) Disability Tables SR 2001;
• (iv) Income/discount Rate until the retirement age 4% and after the retirement age 3%;
• (v) Growth Wage Rate 2.5%

Characteristics of Celbi Pension Fund, at December 31, 2013:

• (i) Portfolio composition:
• a. 18% shares;
  • b. 42.1% bonds at fixed rates;
  • c. 25% bonds at variable rates;
  • d. 14.9% liquidity and other assets.
• (ii) Expected return of the assets of the Plan in the long run 4% until the retirement age and 3% after retirement age.
• b) Other commitments

As of 31 December 2014, the contractual obligations for the acquisitions of fixed assets assumed by the Group companies amounted to, approximately, 22,255,500 Euro (24,000,000 Euro as of 31 December 2013) (Note 7).

31. LEASE CONTRACTS

31.1 OPERATIONAL LEASES

During the year ended at 31 December 2014 it was recognized in the profit and loss statement an amount of, proximately, 9,800,000 Euro (9,300,000 Euro during the year ended at 31 December 2013) of operational leases rents, essentially, related with lands explored by the Group.

Additionally, at the balance sheet date the Group held as lessee, operational lease contracts, which minimal lease payments present the following maturity:

Ano	2014	2013
Until 1 year	10,523,634	10,369,844
Betw een 1 and 5 years	33,295,243	36,037,750
More than 5 years	96,224,287	92,653,066
	140,043,164	139,060,660

31.2 FINANCIAL LEASES

As of 31 December 2014 and 2013, the responsibilities reflected in the statement of financial position related to financial leases had the following maturity:

Ano	2014	2013
Until 1 year (Note 26)	153,763	223,741
Betw een 1 and 5 years (Note 23)	404,350	404,350
More than 5 years	-	-
	558,113	628,091

As at December 31, 2014 and 2013, Altri estimates that the fair value of financial obligations in leasing contracts corresponds to approximately its book value.

Obligations under finance lease contracts are guaranteed by the reserve of ownership of the leased assets.

32. RELATED PARTIES

The subsidiary companies of the Group have between each other transactions that classify as transactions with related parties and which are made at market prices.

In the consolidation procedures the transactions between the companies included in consolidation by the full consolidation method are eliminated, once the consolidated financial statements present the owner and its subsidiaries information as one single company, therefore they are not disclosed in this note.

As of 31 December 2014 and 2013 the balances and transactions with related parties are as follows:

		Purchases and services obtained		Sales and services rendered	Interest income
Transactions	31.12.2014	31.12.2013	31.12.2014	31.12.2013	31.12.2014	31.12.2013
associated companies and joint ventures (a)	2,989,095	2,181,663	15,101,881	4,712,657	293,417	320,072
Other related parties (b)	8,185,557	6,135,933	124,305	-	-	-
	11,174,652	8,317,596	15,226,186	4,712,657	293,417	320,072
		Accounts payable		Accounts receivable	Loans Granted
Balances	31.12.2014	31.12.2013	31.12.2014	31.12.2013	31.12.2014	31.12.2013
Associated companies and joint ventures (a)	46,356	91,556	2,165,278	521,439	11,553,565	13,807,905
Other related parties (b)	6,322,445	6,169,358	3,336,721	3,336,751	-	-
	6,368,801	6,260,914	5,501,999	645,774	11,553,565	13,807,905

(a) All entities consolidated by the equity method at December 31, 2014 and 2013 according to Note 4.2 and available for sale investments as described in Note 4.3;

(b) Were considered as related parties the companies listed below.

During the years ended 31 December 2014 and 2013, there were no transactions or loans granted to the members of the Board of Directors.

Besides the companies included in consolidation (Note 4), entities considered as related parties as of 31 December 2014 can be detailed as follows:

Actium Capital, S.G.P.S., S.A. Adcom Media Anúncios e Publicidade, S.A. Alteria, S.G.P.S., S.A. Caderno Azul, S.G.P.S., S.A. Cofihold, S.G.P.S., S.A. Cofina Media, S.A. Cofina, SGPS, S.A. Destak Brasil – Editora de Publicações, S.A. Destak Brasil – Empreendimentos e Participações, S.A. Elege Valor, S.G.P.S., S.A. F. Ramada – Investimentos, SGPS, S.A. F. Ramada II, Imobiliária, S.A. F. Ramada Serviços de Gestão, Lda. Grafedisport – Impressão e Artes Gráficas, S.A. Livrefluxo, S.G.P.S., S.A. Malva – Gestão Imobiliária, S.A. Mercados Globais – Publicação de Conteúdos, Lda. Metronews – Publicações S.A. Ramada – Aços, S.A. Ramada Storage Solutions, S.A. Sociedade Imobiliária Porto Seguro – Investimentos Imobiliários, S.A. Storax Benelux Storax Limited Storax S.A. Torres da Luz – Investimentos Imobiliários, S.A. Transjornal – Edição de Publicações, S.A. Universal Afir, S.A. Valor Autêntico, SGPS, S.A. VASP – Sociedade de Transportes e Distribuições, Lda

33. KEY MANAGEMENT COMPENSATION

Compensation paid to key managers, who in Altri's case correspond to the Board of Directors, due to its corporate governance model, during the years ended 31 December 2014 and 2013 amounted to 1,412,195 Euro and 1,303,820 Euro, respectively, corresponding only to fixed remuneration and were fully paid by its subsidiaries.

On December 31, 2014, there are not: (i) plans or incentive systems related to grant of shares to members of the Board, (ii) supplementary pensions or early retirement for directors, or (iiii) non-cash benefits considered as remuneration.

The director Laurentina Martins benefits from a pension plan assigned before her appointment to the Board of Directors because, at the grant date, she was a worker of the subsidiary Caima - Indústria de Celulose, S.A. The main features and information about the referred plan are detailed in Note 30 a). On that date, the present value of pensions in payment related with this director amounted to 417,156 Euros and no contribution to the fund was made in 2014.

Altri, SGPS, SA does not have any plan to grant shares or stock options to the members of the governing boards or to its employees.

34. OTHER INCOME

As of 31 December 2014 and 2013 the caption "Other income" can be detailed as follows:

	31.12.2014	31.12.2013
Subsidies to investments and to exploitation	5.140.018	10.066.808
Gains on disposal of fixed assets	1.266.670	141.684
Gains on commodities derivate contracts (Note 28)	512.132	-
Others	3.260.383	3.291.998
	10.179.203	13.500.490

35. OTHER EXPENSES

As of 31 December 2014 and 2013 the caption "Other expenses" can be detailed as follows:

	31.12.2014	31.12.2013
Direct taxes and fees	(1.827.048)	(1.517.611)
Losses on commodities derivate contracts (Note 28)	-	(8.793.869)
Others	(931.689)	(1.822.892)
	(2.758.737)	(12.134.372)

36. NET FINANCIAL LOSS

Consolidated net financial loss for the years ended 31 December 2014 and 2013 are made up as follows:

	31.12.2014	31.12.2013
Financial expenses:
Interest (Note 21)	(18.943.968)	(19.043.419)
Exchange losses	(1.213.849)	(2.553.845)
Losses in derivatives	(2.953.653)	(3.579.253)
Other financial expenses	(11.394.993)	(5.809.223)
	(34.506.463)	(30.985.740)
Financial income:
Interest	4.833.916	3.087.608
Exchange gains	2.506.662	1.929.342
Other financial income	23.974	205.921
	7.364.552	5.222.871

As of 31 December 2013 and 2012, the caption "Losses on derivatives" corresponds to the losses originated by the changes of the derivatives fair value and the loss on interest rate derivatives instruments that matured or were paid until that date (Note 28).

The caption "Other financial expenses" includes, mainly, expenses with loans setup, which are recognized in the profit and loss statement through the duration of those loans (Note 21).

The caption "Gains and losses in associated companies" corresponds, mainly, to the appropriation of the group's share in the results of the investments in associated companies (Note 4.2).

37. AMORTISATION AND DEPRECIATION

As of 31 December 2014 and 2013 the caption "Amortisation and Depreciation" can be detailed as follows:

	31.12.2014	31.12.2013
Tangible fixed assets (Note 7)	48.324.442	48.683.243
Investment properties (Note 8)	61.041	7.379
Intangible Assets (Note 10)	134.897	545.549
	48.520.380	49.236.171

38. EARNING PER SHARE

Earnings per share for the years ended 31 December 2014 and 2013 were determined taking into consideration the following amounts:

	31.12.2014	31.12.2013
Share number for the computation of basic and diluted earning	205,131,672	205,131,672
Net profit considered for the computation of basic and diluted earning	37,381,548	55,347,961
Earnings per share Basic	0.18	0.27
Diluted	0.18	0.27

As of 31 December 2014 and 2013 there are no dilution effects of the number of shares issued.

39. SEGMENTAL INFORMATION

On 16 April 2008 was signed the Altri, SGPS, S.A. spin-off public deed. Under the terms of that project, the planned reorganization implies the split of Altri's two business units that manage equity holdings in the pulp and paper sector and in the steel and storage systems sector. This reorganization aimed a bigger focus and transparency on ALTRI's business, and giving each of the areas an opportunity to be better seen and better evaluated by the market. This allows for the Altri Group to focus its activity on its core business, production and commercialization of bleached paper pulp from eucalyptus, so the Board of Directors believes that there is only one business segment and the management information is reported and analysed on this basis.

Sales and services rendered in 2014 and in 2013 by the Group, according to the geographic segments, were as follows:

	31.12.2014	31.12.2013
Domestic market	115.065.667	111.464.720
International market	427.612.875	447.605.331
	542.678.542	559.070.051

40. NUMBER OF PERSONNEL

During the years ended 31 December 2014 and 2013, the average number of employees of the companies included in the consolidated financial statements by the full consolidation method was of 662 and 651, respectively.

41. FEES OF STATUTORY AUDITOR

The remuneration paid to auditors of the Group and other individuals or entities belonging to the same network, by all the group companies in 2014 and 2013, were as follows:

	31.12.2014	31.12.2013
Statutory Audit (€)	261.258	267.147
Other assurance services (€)	144.234	163.493
Sub-total audit	405.492	430.640
Tax consulting services (€)	62.468	20.075
Other services (€)	165.480	155.467
	633.440	606.182

42. APPLICATION OF NET PROFIT

As regards the year 2013, the Board of Directors proposed in its annual report that the individual net profit of Altri, SGPS, S.A. amounting to 10,843,235.78 Euro to be transferred to Legal Reserves - 542,161.79 Euro, to Free Reserves - 1,685,543.77 Euro and the amount of 8,615,530.22 to dividends distribution. These proposals were approved by the General Shareholders' Meeting held on Abril 24, 2014.

As regards the year 2014, the Board proposes in its annual report that the individual net profit of Altri, SGPS, S.A. amounting to 18,627,109.20 Euro is applied as follows:

Legal Reserves	931,355.46
Free Reserves	1,285,219.98
Dividend distribution	16,410,533.76
	18,627,109.20

43. ENVIRONMENTAL INFORMATION

Following the Kyoto Protocol, the European Union committed herself to reduce the emission of greenhouse gases. Therefore, it has issued a Directive that predicts the commercialisation of carbon dioxide emission licenses. This directive was transposed to the Portuguese legislation and became mandatory since 1 January 2005, namely, for the pulp and paper industry.

Following the ministerial dispatch number 38/2013 dated 15 March 2013, the Portuguese government distributed to the companies the carbon dioxide emission licenses. The Group companies received a free license for the emission of 93,332 tons of carbon dioxide in 2014. If the Group exceeds that amount it will have to buy in the market the remaining licenses. The distribution of the carbon dioxide emission licenses is made in the beginning of the following year, being the emission amounts presented subject to a certification made by an independent entity.

Bearing in mind that these licenses refer to the period 2013-2020, in accordance with the estimates for the year 2014, the Group does not expect this legislation to carry significant additional costs.

As of 31 December 2014 the Group has not recorded any liability concerning environmental issues, nor has disclosed any environmental contingency, since the Board of Directors believes that, as of that date, no obligations and responsibilities arising from past events have occurred that lead to significant costs to the Group.

44. FINANCIAL STATEMENTS APPROVAL

The financial statements were approved by the Board of Directors and authorized for issuance in 20 March 2015. The final approval depends on the agreement of the General Shareholders Meeting.

45. EXPLANATION ADDED FOR TRANSLATION

These consolidated financial statements are a translation of financial statements originally issued in Portuguese in accordance with International Financial Reporting Standards, some of which may not conform or be required by generally accepted accounting principles in other countries. In the event of discrepancies, the Portuguese language version prevails.

The official chartered accountant The Board of Directors

____________________________________________________ Paulo Jorge dos Santos Fernandes – President

____________________________________________________ João Manuel Matos Borges de Oliveira – Vice-President

____________________________________________________ Pedro Macedo Pinto de Mendonça

____________________________________________________ Domingos José Vieira de Matos

____________________________________________________ Laurentina da Silva Martins

____________________________________________________ Pedro Miguel Matos Borges de Oliveira

____________________________________________________ Ana Rebelo de Carvalho Menéres de Mendonça

STATUTORY AUDIT AND AUDITOR'S REPORT

(This is a translation of a report originally issued in Portuguese in the event of discrepancies, the Portuguese language version prevails – Note 45)

Introduction

1. In compliance with the applicable legislation we hereby present our Statutory Audit and Auditor's Report on the consolidated and individual financial information contained in the Board of Directors' Report, and on the accompanying consolidated and individual financial statements of Altri, SGPS., S.A. ("Company") and subsidiaries for the year ended 31 December 2014 which comprise the Consolidated and Individual Statements of Financial Position as of 31 December 2014 (that present a total consolidated and individual net assets of 1,239,255,998 Euro and 256,611,431 Euro, respectively, and consolidated and individual equity of 272,263,977 Euro and 62,024,870 Euro, respectively, including a consolidated net profit attributable to the Company's shareholders of 37,381,548 Euro and an individual net profit of 18,627,109 Euro), the Consolidated and Individual Statements of profit and loss, comprehensive income, changes in equity and cash-flows for the year then ended and the corresponding Notes.

Responsibilities

• 1. The Board of Directors is responsible for: (i) the preparation of consolidated and individual financial statements that present a true and fair view of the financial position of the Company and of the group of companies included in the consolidation, the consolidated and individual results of their operations, comprehensive income, changes in equity and their consolidated and individual cash-flows; (ii) the preparation of historical financial information in accordance with the International Financial Reporting Standards as adopted by the European Union and that is complete, true, up-to-date, clear, objective and licit, as required by the Securities Market Code; (iii) the adoption of adequate accounting policies and criteria and the maintenance of an appropriate system of internal control; and (iv) informing on any significant facts that have influenced the operations of the Company and of the group of companies included in the consolidation, their financial position or their results and comprehensive income.
• 1. Our responsibility is to examine the consolidated and individual financial information contained in the documents referred to above, includind verifying that, in all material respects, the information is complete, true, up-to-date, clear, objective and licit, as required by the Securities Market Code, and to issue a professional and independent report based on our examination.

Scope

1. Our examination was performed in accordance with the Technical/Audit Standards ("Normas Técnicas e as Directrizes de Revisão/Auditoria") issued by the Portuguese Institute of Statutory Auditors ("Ordem dos Revisores Oficiais de Contas"), which require that the examination be planned and performed with the objective of obtaining reasonable assurance about whether the consolidated and individual financial statements are free of material misstatement. Such an examination includes verifying, on a sample basis, evidence supporting the amounts and disclosures in the consolidated and individual financial statements and assessing the estimates, based on judgments and criteria defined by the Board of Directors, used in their preparation. Such an examination also includes verifying the consolidation procedures, the application of the equity method and that the financial statements of the companies included in the consolidation have been appropriately examined, assessing the adequacy of the accounting principles used and their uniform application and disclosure, taking into consideration the circumstances, verifying the applicability of the going concern concept, verifying the adequacy of the overall presentation of the consolidated and individual financial statements and assessing that, in all material respects, the consolidated and individual financial information is complete, true, up-to-date, clear, objective and licit. Our examination also comprises verifying that the financial information contained in the Board of Directors' Report is in accordance with the consolidated and individual financial statements, as well to perform the verifications established in the numbers 4 and 5 of the article 451º of the Portuguese Company Law ("Código das Sociedades Comerciais"). We believe that our examination provides a reasonable basis for expressing our opinion.

Page 2 of 2

Opinion

1. In our opinion, the consolidated and individual financial statements referred to in paragraph 1 above, present fairly in all material respects, the consolidated and individual financial position of Altri, SGPS, S.A. as of 31 December 2014, the consolidated and individual results of their operations, consolidated and individual comprehensive income, changes in consolidated and individual equity and their consolidated and individual cash flows for the year then ended, in accordance with the International Financial Reporting Standards as adopted by the European Union and the information contained therein is, in terms of the definitions included in the technical and audit standards referred to in paragraph 4 above, complete, true, up-to-date, clear, objective and licit.

Report on other legal requirements

1. It is also our opinion that the financial information included in the Board of Directors' Report is in accordance with the consolidated and individual financial statements of the year and that the Corporate Governance Report includes the information required to the Company, as established by the article 245º- A of the Securities Market Code.

Porto, 20 March 2015

______________________________________ Deloitte & Associados, SROC S.A. Represented by Jorge Manuel Araújo de Beja Neves

REPORT AND OPINION OF THE STATUTORY AUDIT BOARD

(Translation of a report originally issued in Portuguese – Note 45)

To the Shareholders of Altri, SGPS, S.A.

1. Report

In compliance with the applicable legislation and our mandate, we hereby submit our Report and Opinion, which covers the Board of Director's Report and the individual and consolidated Financial Statements of Altri, SGPS, S.A. ("Company") for the year ended 31 December 2014, which are the responsibility of the Company's Board of Directors.

During the year under analysis, the Statutory Audit Board accompanied the operations of the Company and its affiliates, the timely writing up of accounting records, compliance with statutory and legal requirements and the effectiveness of the risk management and internal control systems, having held meetings with the periodicity and length considered appropriate and having always obtained, from the Board of Directors and personnel of the Company and its affiliates, all the information and explanations required.

As part of its duties, the Statutory Audit Board examined the individual and consolidated statement of financial position as of 31 December 2014, the individual and consolidated statements of profit and loss, comprehensive income, cash flow, and changes in shareholders' funds for the year then ended, and the corresponding notes. Additionally, the Statutory Audit Board examined the Report of the Board of Directors for the year 2014, and fulfilled its duties concerning the review of the qualifications, independence and work of the Statutory Auditor, and reviewed the Statutory Audit and Auditor's Report and was in agreement with its content.

2. Opinion

Considering the above, in the opinion of the Statutory Audit Board, the Board of Director's Report and the individual and consolidated Financial Statements are in accordance with accounting, legal and statutory requirements and consequently may be approved by the General Shareholders' Meeting.

3. Responsibility Statement

In accordance with paragraph a), number 1 of article 8 of the Regulation of CMVM 5/2008, the members of the Statutory Audit Board declare that, to their knowledge, the information contained in the Management Report and the individual and consolidated financial statements were prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, giving a true and fair view, in all material respects, of the assets and liabilities, financial position and the results of the Company and companies included in the consolidation perimeter as of 31 December 2014. Also it is their understanding that the Management Report faithfully describes the business evolution, performance and financial position of the Company and of the companies included in the consolidation perimeter and contains a description of the major risks and uncertainties that they face.

We wish to thank the Company's Board of Directors and the departments of the Company and its affiliates involved for the assistance provided to us.

Porto, 20 March 2015

The Statutory Audit Board

Pedro Pessanha President of the Statutory Audit Board

André Seabra Ferreira Pinto Member of the Statutory Audit Board

José Guilherme Barros Silva Member of the Statutory Audit Board

ALTRI, SGPS, S.A.

Rua do General Norton de Matos, 68 - R/C 4050 – 424 Porto PORTUGAL Tel: + 351 22 834 65 02

www.altri.pt