Altri SGPS — Interim / Quarterly Report 2012

Nov 30, 2012

ALTRI, SGPS, S.A. Public Company

Head Office: Rua do General Norton de Matos, 68, r/c – Porto Fiscal Number: 507 172 086 Share Capital: 25.641.459 Euros

Financial Information – 3rd Quarter of 2012 (Unaudited)

The financial information was prepared in accordance with the International Financial Reporting Standards (IFRS).

Income Statement

thousand euros	3Q 2011	2Q 2012	3Q 2012	3Q12/3Q11 Var%	3Q12/2Q12 Var%
Sales Services rendered Other Income	114.759 2.209 1.831	140.094 1.739 1.364	132.685 2.147 1.666	15,6% -2,8% -9,0%	-5,3% 23,5% 22,1%
Total Revenues	118.799	143.197	136.498	14,9%	-4,7%
Costs of sales External supplies and services Payroll expenses Provisions and impairment losses Other expeses	46.812 33.120 8.543 2.305 -44	57.115 36.346 9.633 2.080	51.142 34.712 7.650 2.807	9,3% 4,8% -10,5% 21,8%	-10,5% -4,5% -20,6% 35,0%
Total expenses (a)	90.736	105.174	96.313	6,1%	-8,4%
EBITDA (b) Margin	28.063 23,6%	38.023 26,6%	40.186 29,4%	43,2% +5,9 pp	5,7% +2,9 pp
Amortisation and depreciation	13.278	12.428	12.252	-7,7%	-1,4%
EBIT (c) Margin	14.785 12,4%	25.595 17,9%	27.934 20,5%	88,9% +8,1 pp	9,1% +2,6 pp
Gains and losses in associated companies and joint ventures Financial expenses Financial income	515 -11.581 2.857	955 -9.529 2.009	790 -8.984 1.270	53,5% -22,4% -55,5%	-17,3% -5,7% -36,8%
Finacial profit	-8.210,0	-6.564,5	-6.924,2	-15,7%	5,5%
Profit before income tax	6.575	19.030	21.009	219,5%	10,4%
Income tax Minority interest	-1.227 -2	-3.182 0	-3.530 8	187,6% s s	10,9% s.s.
Profit for the period from discontinued operations attributable to parent company's shareholders	5.350	15.848	17.472	226,6%	10,2%
Profit for the period from discontinued operations	-48	-	-	-	s s
Consolidates net profit attributable to parent company's shareholders	5.303	15.848	17.472	229,5%	10,2%

(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

The 3rd quarter of 2012 registered EBITDA margin above 29%

The third quarter of 2012 was characterized by a sharp increase in Altri's operating efficiency, where the EBITDA reached 40 million euro. EBITDA margin for the period was 29.4%. This operating performance led to a free cash flow generation of 18 million euro for this quarter.

During the third quarter of 2012, total revenues reached 136.5 million euro, representing an increase of 15% compared with the same period of the previous year. Comparing with the second quarter of 2012, total revenues decreased about 5%.

The quarter on quarter revenue reduction is directly related with the annual maintenance stoppage of Altri's main industrial unit – Celbi – during the month of September 2012. Thus on the third quarter of 2012, Altri produced about 215.3 thousand tons of pulp, minus 6% compared with the 229.1 thousand tons produced in the second quarter of 2012.

Evolution of pulp production between 3Q 2011 and 3Q 2012 by industrial unit (thousands tons)

In terms of volumes, during the period under analysis, 225 thousand tons were sold, minus 7% than the pulp sales made in the second quarter of 2012 (242.8 thousand tons) and more 9% than the pulp sales made in the same period of 2011 (206.7 thousand tons).

In terms of turnover, pulp sales, in the third quarter of 2012, amounted to 116.5 million euro, minus 4.7% compared to the second quarter of 2012 and a rise of 17% compared with the same period of 2011.

Financial Information - 3Q 2012

In the third quarter of 2012, Altri exported about 205 thousand tons of pulp, which represents 91% of Altri's total sales. The amount of these exports reached 106.4 million euro. Cumulatively, during the first nine months of 2012, Altri exported about 638 thousand tons of pulp, corresponding to approximately 315 million euro.

Net revenues of energy associated with cogeneration and other forest components amounted to 6.8 million euro, which represents an increase of 6% compared with the net revenue registered in the third quarter of 2011 (6.4 million euro).

Total costs, excluding depreciation, financial and tax amounted to 96.3 million euro, a 6% increase compared with the same period of the previous year. In the second quarter of 2012, the evolution of total costs, excluding depreciation, financial and tax represented a decrease of 8.4%.

The cost captions registered decreases between the second and the third quarter of 2012. 'Cost of Sales' decreased about 11%; 'External supplies and services' decreased approximately 5% and the 'Payroll expenses' decreased about 21%. This quarterly reduction reflects the implementation of a set of measures to enhance operational efficiency, which focused primarily in the optimization of specific consumptions (namely wood) and in reducing the total amount of fixed costs. In 'Payroll expenses', the decreased is due to the record of costs related to a restructuring process, representing 2 million euro, recorded in the second quarter of 2012.

EBITDA higher than 40 million euro and EBIT year on year growth of 89%

3Q2012 EBITDA reached approximately 40.2 million euro, a 43% increase compared to the same period last year and an increase of about 6% compared to the second quarter of 2012. EBITDA margin for the third quarter of 2012 reached 29.4%.

Operating profit (EBIT) was about 27.9 million euro, which corresponds to a rise of about 89% compared to EBIT of the third period of 2011 and a 9% increase compared to the EBIT recorded in the second quarter of 2012. EBIT margin reached 20.5%.

Net income reached 17.5 million euro in the third quarter of 2012, more than triple compared to the same period of 2011.

Net profit of the first nine months of 2012 reaches 39.7 million euro (+72%)

thousand euros	9M 2011	9M 2012	9M12/9M11 Var%
Sales	358.518	392.677	10%
Services rendered	4.680	5.612	20%
Other Income	6.339	4.207	-34%
Total Revenues	369.536	402.495	8,9%
Costs of sales	150.503	159.517	6%
External supplies and services	94.554	106.011	12%
Payroll expenses	24.472	24.257	-1%
Provisions and impairment losses	-44	0	-
Other expeses	8.930	5.913	-34%
Total expenses (a)	278.415	295.697	6,2%
EBITDA (b)	91.121	106.799	17,2%
Margin	24,7%	26,5%	+1,9 pp
Amortisation and depreciation	39.654	37.088	-6,5%
EBIT (c)	51.466	69.711	35,4%
Margin	13,9%	17,3%	+3,4 pp
Gains and losses in associated companies and joint ventures	872	1.875	115,1%
Financial expenses	-30.833	-28.686	-7,0%
Financial income	6.225	4.931	-20,8%
Finacial profit	-23.736	-21.880	-7,8%
Profit before income tax	27.730	47.831	72,5%
Income tax	-4.596	-8.148	77,3%
Minority interest	-1	9	s s
Profit for the period from discontinued operations attributable to	23.136	39.674
parent company's shareholders			71,5%
Profit for the period from discontinued operations	-37	-	-
Consolidates net profit attributable to parent company's	23.099	39.674	71,8%
shareholders

(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

Cumulatively, during the first nine months of 2012, total revenues reached approximately 402.5 million euro, which represents an increase of 9% compared to the same period in 2011. EBITDA reached 106.8 million euro, a 17% increase compared to the same period in 2011. The net profit reached 39.7 million euro (+72%).

Financial Information - 3Q 2012

Once again, this growth pattern was mainly achieved through operating efficiency reinforcement. During the first nine months of 2012, EBITDA and EBIT margins improved 1.9 percentage points and 3.4 percentage points, respectively. It is important to note that the average selling prices of pulp were 4% lower compared with the same period in 2011.

Cash flow generated in the first nine month of 2012 reached 30.6 million euro

Total investment made in the third quarter of 2012 amounted to 8.7 million euro. In the first nine months of 2012, Altri through its forest and industrial units invested approximately 16.7 million euro.

The nominal remunerated debt net of cash and investments available for sale in September 30, 2012 amounted to 647.8 million euro, having reduced about 30.6 million compared to December 31, 2011. Regarding the net debt recorded in the end of the second quarter of 2012 (665.9 million euro), the decrease reached approximately 18.2 million euro.

Financing needs are fully assured, holding the Group 91 million euro of cash and cash equivalents and investments available for sale, as of 30 September 2012. Additionally, Altri Group holds 55 million euro in available financing lines not used.

Key balance sheet indicators

thousand euro	2011	9M 2012	Var%
Biological assets	103.339,5	105.330,6	2%
Tangible assets	460.118,9	432.139,4	-6%
Goodw ill	265.531,4	265.531,4	0%
Others	33.057,5	43.777,1	32%
Total non current assets	862.047,3	846.778,5	-2%
Inventories	61.728,9	54.128,0	-12%
Customers	66.672,8	95.361,7	43%
Cash and cash equivalentes	112.746,9	76.491,1	-32%
Others	24.527,9	19.066,7	-22%
Total current assets	265.676,5	245.047,6	-8%
Total assets	1.127.723,8	1.091.826,1	-3%
Shareholder's equity and minority interests	140.762,6	168.862,7	20%
Bank loans	11.875,0	102.055,4	759%
Other loans Reimbursable subsidies	499.878,0	459.718,8	-8% -28%
Others	38.893,9 23.049,6	28.180,2 21.567,3	-6%
Total non current liabilities	573.696,5	611.521,7	7%
Bank loans	157.121,7	46.217,9	-71%
Other current loans	127.658,5	126.968,0	-1%
Reimbursable subsidies	8.784,0	20.028,5
Suppliers	66.608,8	50.254,5	-25%
Others	53.091,6	67.972,8	28%

Pulp market

The 3rd quarter of 2012 according to pulp BEKP price´s evolution, was characterized by a descending behavior, taking the market price down to 750 USD/ton (accordance with PIX data). During August and September the increase in the Chinese demand reversed this behavior, which resulted in an announced made by the main world competitors of a prices increase of 30 USD/ton, having the pulp price reached 780 USD/ton.

On average, the price registered in the 3rd quarter of 2012 was 767 USD/ton (771.7 USD/ton in the second quarter of 2012) or 614 €/ton (600.4 €/ton in the second quarter of 2012). In the first nine months of 2012 the price was 746 USD/ton (849 USD/ton in the same period in 2011) or 583 €/ton (604 €/ton in the same period in 2011).

Thus, according to data from the "Pulp and Paper Products Council" (PPPC) in the first nine months of 2012, the level of demand for bleached paper pulp increase 2.2%, to 40.0 million ton. The shipment to capacity ratio was of 91%. This growth was due, almost exclusively, to the significant growth in demand from China, which registered a rise of 12.1%. As for the demand type, the eucalyptus pulp (BEKP) had the biggest increase, with a 3.4% of growth in first nine months of 2011.

According to the weekly index PIX, currently, the market prices of hardwood pulp is 763USD/ton (594€/ton).

Market price evolution in BEKP pulp in Europe since 1990 to the end of 3rd Q 2012 (EUR)

Altri – business profile

Altri is a reference in European eucalyptus pulp producers. In addition to pulp production, the Company is also present in the renewable power production business from forest base sources namely industrial cogeneration through black liquor and biomass. The forestry strategy is based on the full use of all the components provided by the forest: pulp, black liquor and forest wastes.

Currently, Altri manages over 85 thousand hectares of forest in Portugal entirely certified from the Forest Stweardship Council (FSC) and from the Programme for the Endorsement of Forest Certification (PEFC), two of the most worldwide acknowledged certification entities.

Currently, Altri has three pulp mills in Portugal with an installed capacity in 2011 of about 850,000 tons/year of pulp bleached eucalyptus.

Altri's organic structure is as follows:

Oporto, November 7th 2012

CONSOLIDATED FINANCIAL STATEMENTS

ALTRI, SGPS, S.A.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2012 AND 31 DECEMBER 2011

(Translation of financial statements originally issued in Portuguese – Note 20) (Amounts expressed in Euro)

ASSETS	Notes	30.09.2012	31.12.2011
NON CURRENT ASSETS:
Biological assets		105,330,622	103,339,502
Tangible fixed assets		432,139,360	460,118,883
Investment property		526,113	534,226
Goodwill		265,531,404	265,531,404
Intangible assets		608,749	989,355
Investments in associated companies and joint ventures	4.2	8,911,126	7,034,600
Investments available for sale	4.3	14,552,566	10,093,935
Other non current assets		684,243	706,086
Deferred tax assets	7	18,494,318	13,699,322
Total non current assets		846,778,501	862,047,313
CURRENT ASSETS:
Inventories		54,128,027	61,728,889
Customers		95,361,730	66,672,815
Other debtors		6,153,554	9,087,406
State and other public entities		10,113,763	12,100,688
Other current assets		2,799,387	3,339,769
Cash and cash equivalents	6	76,491,109	112,746,939
Total current assets		245,047,570	265,676,506
Total assets		1,091,826,071	1,127,723,819
SHAREHOLDERS' FUNDS AND LIABILITIES		30.09.2012	31.12.2011
SHAREHOLDERS' FUNDS: Share capital	8	25,641,459	25,641,459
Legal reserve		2,862,981	2,862,981
Other reserves		100,569,442	89,585,006
Consolidated net profit / (loss)		39,674,225	22,567,762
Total shareholders' funds attributable to the parent company's shareholders		168,748,107	140,657,208
Non controlling interests		114,582	105,421
Total Shareholders' funds		168,862,689	140,762,629
LIABILITIES:
NON CURRENT LIABILITIES:
Bank loans	9	102,055,350	11,875,000
Other loans	9	459,718,841	499,878,011
Reimbursable subsidies	9	28,180,219	38,893,917
Other non current creditors		699,819	699,819
Other non current liabilities		18,507,945	20,755,952
Deferred tax liabilities	7	439,830	444,167
Provisions	10	1,919,668	1,149,668
Total non current liabilities		611,521,672	573,696,534
CURRENT LIABILITIES:
Bank loans	9	46,217,893	157,121,714
Other loans	9	126,968,027	127,658,514
Reimbursable subsidies	9	20,028,482	8,784,029
Suppliers		50,254,533	66,608,803
Other current creditors		5,250,529	8,233,010
State and other public entities		10,216,515	1,736,137
Other current liabilities		29,519,150	28,370,465
Derivatives	11	22,986,581	14,751,984
Total current liabilities		311,441,710	413,264,656
Total shareholders' funds and liabilities		1,091,826,071	1,127,723,819

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

ALTRI, SGPS, S.A.

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS FOR THE NINE AND THREE MONTHS PERIODS ENDED 30 SEPTEMBER 2012 AND 2011

(Translation of financial statements originally issued in Portuguese – Note 20) (Amounts expressed in Euro)

		NINE MONTHS PERIOD ENDED				QUARTER ENDED
	Notes	30.09.2012	30.09.2011	30.09.2012	30.09.2011
Continuing operations
Sales		392,676,592	358,517,800	132,685,127	114,759,294
Services rendered		5,612,347	4,679,534	2,146,815	2,208,925
Other income	14	4,206,537	6,338,602	1,666,170	1,831,077
Cost of sales		(159,517,238)	(150,503,313)	(51,142,453)	(46,811,933)
External supplies and services		(106,010,574)	(94,554,320)	(34,712,377)	(33,120,002)
Payroll expenses		(24,256,532)	(24,472,401)	(7,650,345)	(8,543,186)
Amortisation and depreciation		(37,087,643)	(39,654,164)	(12,251,852)	(13,277,726)
Provisions and impairment losses	10	-	44,304	-	44,304
Other expenses	15	(5,912,556)	(8,929,651)	(2,807,404)	(2,305,387)
Gains and losses in associated companies and joint ventures	12	1,875,496	871,739	789,845	514,588
Financial expenses	12	(28,686,304)	(30,833,099)	(8,984,471)	(11,581,463)
Financial income	12	4,930,776	6,225,423	1,270,421	2,856,882
Profit before income tax		47,830,901	27,730,454	21,009,476	6,575,373
Income tax		(8,147,515)	(4,595,959)	(3,529,878)	(1,227,257)
Net profit		39,683,386	23,134,495	17,479,598	5,348,116
Attributable to:
Parent company's shareholders	13	39,674,225	23,135,916	17,472,096	5,350,099
Non controlling interests		9,161	(1,421)	7,502	(1,983)
Discontinued operations
Profit for the period from discontinued operations	4.4	-	(37,036)	-	(47,582)
Attributable to:
Parent company's shareholders		-	(37,036)	-	(47,582)
Non controlling interests		-	-	-	-
Consolidated net profit		39,683,386	23,097,459	17,479,598	5,300,534
Attributable to:
Parent company's shareholders	13	39,674,225	23,098,880	17,472,096	5,302,517
Non controlling interests		9,161	(1,421)	7,502	(1,983)
		39,683,386	23,097,459	17,479,598	5,300,534
Earnings per share:
Continuing operations
Basic	13	0.19	0.11	0.09	0.03
Diluted	13	0.19	0.11	0.09	0.03
Continuing and discontinued operations
Basic	13	0.19	0.11	0.09	0.03
Diluted	13	0.19	0.11	0.09	0.03

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

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE NINE AND THREE MONTHS PERIODS ENDED 30 SEPTEMBER 2012 AND 2011

(Translation of financial statements originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

		NINE MONTHS PERIOD ENDED		QUARTER ENDED
	Notes	30.09.2012	30.09.2011	30.09.2012	30.09.2011
Net consolidated profit / (loss) for the period		39,683,386	23,097,459	17,479,598	5,300,534
Change in fair value of cash flow hedging derivatives Change in fair value of investments available for sale	7 and 11	(7,799,905) 300,000	5,712,261 -	5,524,488 300,000	832,382 -
Other comprehensive income		(7,499,905)	5,712,261	5,824,488	832,382
Total comprehensive income for the period		32,183,481	28,809,720	23,304,086	6,132,916
Attributable to: Shareholders' of the parent company Non controlling interests		32,174,320 9,161	28,811,141 (1,421)	23,296,584 7,502	6,134,899 (1,983)

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

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

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYFOR THE NINE MONTHS PERIODS ENDED 30 SEPTEMBER 2012 AND 2011

(Translation of financial statements originally issued in Portuguese – Note 20) (Amounts expressed in Euro)

				Att ribu tab le t o th	nt c e p are om pan	's s har eho lde y rs
					Oth er r ese rve s Oth ers
	Not es	Sh ital are ca p	Leg al r ese rve	Hed ing g res erv es	and res erv es reta ine d nin ear gs	Tot al o the rs res erv es	Ne t pr ofit	Tot al	Non trol ling con inte ts res	Tot al sha reh old er's fun ds
Bal f 1 Jan 201 1 anc e a s o uar		25, 641 ,45 9	2,8 62, 981	( 0) 14, 855 ,87	39, 387 ,31 5	24, 531 ,44 5	62, 014 ,06 9	115 ,04 9,9 54	112 ,36 5	115 ,16 2,3 19
y of t ofit of App riat ion he sol ida ted t pr 201 0 rop con ne		-	-	-	62, 014 ,06 9	62, 014 ,06 9	( 9) 62, 014 ,06	-	-	-
Div ide nds		-	-	-	( ) 4,1 02, 633	( ) 4,1 02, 633	-	( ) 4,1 02, 633	-	( ) 4,1 02, 633
Oth ers		-	-	-	( ) 19, 286	( ) 19, 286	-	( ) 19, 286	( 94) 2,9	( ) 22, 280
Tot al c hen sive inc e fo r th erio d om pre om e p		-	-	5,7 12, 261	-	5,7 12, 261	23, 098 ,88 0	28, 811 ,14 1	( 21) 1,4	28, 809 ,72 0
Bal f 30 Se mb er 2 011 pte anc e a s o		25, 641 ,45 9	2,8 62, 981	( 9,1 43, 609 )	97, 279 ,46 5	88, 135 ,85 6	23, 098 ,88 0	139 ,73 9,1 76	107 ,95 0	139 ,84 7,1 26
Bal f 1 Jan 201 2 anc e a s o uar y App riat ion of t he sol ida ted ofit of 201 1 t pr rop con ne Div ide nds Oth ers		25, 641 ,45 9	2,8 62, 981	(7 ,68 5,7 49)	97, 270 ,75 5	89, 585 ,00 6	22, 567 ,76 2	140 ,65 7,2 08	105 ,42 1	140 ,76 2,6 29
		-	-	-	22, 567 ,76 2	22, 567 ,76 2	( 22, 567 ,76 2)	-	-	-
	18	-	-	-	( 4,1 02, 633 )	( 4,1 02, 633 )	-	( 4,1 02, 633 )	-	( 4,1 02, 633 )
		-	-	-	19, 212	19, 212	-	19, 212	-	19, 212
Tot al c hen sive inc e fo r th erio d om pre om e p Bal f 30 Se mb er 2 012		- 641 9	- 981	(7,7 99, 905 ) 485	300 ,00 0 116 96	(7, 499 ,90 5) 100 42	39, 674 ,22 5 674 5	32, 174 ,32 0 168 07	9,1 61 114 2	32, 183 ,48 1 168 89
pte anc e a s o		25, ,45	2,8 62,	( 4) 15, ,65	,05 5,0	,56 9,4	39, ,22	,74 8,1	,58	,86 2,6

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

The official chartered of accounts

The Board of Directors

ALTRI , SGPS, S.A.

CONDENSED CONSOLIDATED CASH-FLOW STATEMENTS FOR THE NINE AND THREE MONTHS PERIODS ENDED 30 SEPTEMBER 2012 AND 2011

(Translation of financial statements originally issued in Portuguese – Note 20) (Amounts expressed in Euro)

Operating activities: Cash flow from operating activities (1) Investment activities:	Notes 6	NINE MONTHS PERIOD ENDED 30.09.2012 71,707,016	30.09.2011 29,843,726	QUARTER ENDED 30.09.2012 34,713,629	30.09.2011 7,944,728
Collections relating to:
Investments		200,000	5,060,000	-	565,000
Tangible assets		702,013	1,776,300	330,537	361,563
Interest and similar income		3,393,619	5,030,401	1,374,119	2,941,289
Investment subsidies		530,718	-	-	-
Payments relating to:
Investments	6	(4,050,469)	(16,259)	-	(8,978)
Intangible assets		(3,223)	(1,006,908)	-	(793,136)
Tangible assets		(10,228,292)	(16,367,455)	(3,792,022)	(4,710,053)
Investment subsidies		(277,862)	-	(277,862)	-
Cash flow from investment activities (2)		(9,733,496)	(5,523,921)	(2,365,228)	(1,644,315)
Financing activities:
Collections relating to:
Loans obtained		18,540,089	35,360,002	2,692,508	16,352,205
Payments relating to:
Loans obtained		(81,221,292)	(81,615,458)	(51,730,668)	(78,615,458)
Leasing contracts amortizations		-	(16,187)	-	(16,187)
Interest and similar costs		(31,722,049)	(33,325,052)	(13,710,793)	(14,734,156)
Dividends	18	(4,102,633)	(4,102,633)	-	-
Cash flow from financing activities (3)		(98,505,885)	(83,699,328)	(62,748,953)	(77,013,596)
Cash and cash equivalents at the beginning of the period		111,418,007	129,653,370	105,286,194	140,871,958
Perimeter variation		-	(115,072)	-	-
Variation of cash and cash equivalents: (1)+(2)+(3)		(36,532,365)	(59,379,523)	(30,400,552)	(70,713,183)
Cash and cash equivalents at the end of the period	6	74,885,642	70,158,775	74,885,642	70,158,775

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

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012

(Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

1. INTRODUCTORY NOTE

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

Altri was incorporated as a result of the reorganization process of Cofina, SGPS, S.A. occurred in 2005, through the demerger of the investment previously held by this group in Celulose do Caima, SGPS, S.A. (representing 97.23% of this company's share capital), under a simple demerger operation predicted in item 1.a), article 118 of the Commercial Companies Code ("Código das Sociedades Comerciais").

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 production units (Celbi in Figueira da Foz, Caima in Constância do Ribatejo and Celtejo in Vila Velha de Ródão).

Due to this new reality of Altri Group, the Board of Directors believe that there is only one business segment (production and commercialization of bleached paper pulp from eucalyptus) and the management information is also analyzed on this basis, for which the segmental information mentioned in Note 16 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.

2. MAIN ACCOUNTING POLICIES AND BASIS FOR PRESENTATION

The consolidated financial statements as of 30 September 2012 were prepared using accounting policies consistent with the International Financial Reporting Standards and in accordance with the International Accounting Standard and International Accounting Standard 34 – Interim Financial Reporting and includes the statement of financial position, the statement of profit and loss, the statement of comprehensive income, the statement of changes in equity and the condensed statement of cash flows as well as the selected explanatory notes.

The accounting policies used in the preparation of the consolidated financial statements of Altri are consistent with those used in the year ended 31 December 2011.

3. CHANGES IN ACCOUNTING POLICIES AND CORRECTION OF MISTAKES

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

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012 (Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

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 30 September 2012 and 31 December 2011, are as follows:

Company	Head Office		Percentage Held	Activity
Mother-Company: Altri, SGPS, S.A.	Oporto	2012	2011	Investment management
Group Caima / Celtejo / Celbi:
Celulose do Caima, SGPS, S.A.	Figueira da Foz	100%	100%	Investment management
Caima Indústria de Celulose, S.A.	Constância	100%	100%	Production and commercialization of pulp
Altri Florestal, S.A.	Figueira da Foz	100%	100%	Sylvan exploration
Caima Energia – Empresa de Gestão e Exploração de Energia, S.A.	Constância	100%	100%	Production of thermal and electrical energy
Invescaima – Investimentos e Participações, SGPS, S.A.	Figueira da Foz	100%	100%	Investment management
Inflora – Sociedade de Investimentos Florestais, S.A.	Figueira da Foz	100%	100%	Sylvan exploration
Celtejo – Empresa de Celulose do Tejo, S.A.	Vila Velha de Ródão	99,83%	99,83%	Production and Commercialization of pulp
Altri - Energias Renováveis, SGPS, S.A.	Lisboa	99,83%	99,83%	Investment management
Celulose Beira Industrial (Celbi), S.A.	Figueira da Foz	100%	100%	Production and Commercialization of pulp
Celbinave – Tráfego e Estiva SGPS, Unipessoal, Lda.	Figueira da Foz	100%	100%	Freightage of ships
Viveiros do Furadouro Unipessoal, Lda.	Óbidos	100%	100%	Production of plants in nurseries and services related w ith forests and landscapes
Altri, Participaciones Y Trading, S.L.	Madrid, Espanha	100%	100%	Investment management and commercialization of pulp
Altri Sales, S.A.	Nyon, Suiça	100%	100%	Commercialization of pulp
Pedro Frutícola, Sociedade Frutícola, S.A.	Constância	100%	100%	Agriculture production
Captaraíz Unipessoal, Lda.	Figueira da Foz	100%	100%	Property buying and selling

All the above companies were included in the Altri Group consolidated financial statements in accordance with the full consolidation method.

4.2 INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT VENTURES

The associated companies and joint ventures, percentage of capital held and main activity as of 30 September 2012 and 31 December 2011 are as follows:

Company	Percentage held		Activity
	2012	2011
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%	Electric energy production

Those associated companies and joint ventures were included in the Altri Group consolidated financial statements in accordance with the equity method.

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 SEPTEMBER 2012

(Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

The book value, net assets, share capital and net profit for the period ended on 30 September 2012 for these associated companies and joint ventures are as follows:

Company	Book value (a)	Asset	Equity	Net profit
Associated companies:
Operfoz – Operadores do Porto da Figueira da Foz, Lda.	477.243	3.738.848	1.431.727	298.712
Joint ventures:
EDP – Produção Bioeléctrica, S.A.	8.433.883	154.464.370	12.432.398	3.597.878
	8.911.126

(a) – includes loans granted.

4.3 INVESTMENTS AVAILABLE FOR SALE

As of 30 September 2012 and 31 December 2011 the investments available for sale are as follows:

Company	Book value
	2012	2011
Rigor Capital - Produção de Energia. Lda.	10.000.000	10.000.000
Others investments	4.552.566	93.935
	14.552.566	10.093.935

The caption "Investments available for sale" includes financial investments under 20%, in companies where Altri Group has no significant influence on its management, which are stated at acquisition cost, reduced by impairment losses.

4.4 ASSETS CLASSIFIED AS HELD FOR SALE OR IN DISCONTINUATION

During the year ended 31 December 2011 Altri Group sold its subsidiary Socasca – Recolha e Comércio de Recicláveis, S.A. ("Socasca").

The detail of profits and losses from the operational unit in discontinuation – Sócasca in 30 September 2011 is as follows:

	30.09.2011
	Sócasca
Sales and services rendered Other income	3.260.648 471.461
Cost of sales	(1.375.176)
External supplies and services	(1.771.332)
Payroll expenses	(260.679)
Other expenses	(49.938)
Amortisation and depreciation	(236.336)
Financial expenses	(71.679)
Profit before income tax	(33.031)
Income tax	(4.005)
Net profit	(37.036)

This financial participation was sold during the year ended 31 December 2011 for an amount of 2,300,000 Euro (Note 6) of which up to 30 September 2012 were received 700,000 Euros, and to that date Altri is to receive the amount of 1.600.000 Euro.

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012 (Translation of notes originally issued in Portuguese – Note 20) (Amounts expressed in Euro)

5. CHANGES OCCURED IN THE CONSOLIDATION PERIMETER

During the period ended 30 September 2012, there were no changes in the consolidation perimeter compared to 31 December 2011.

6. CASH AND CASH EQUIVALENTS

As of 30 September 2012 and 2011, the caption "Cash and cash equivalents" can be detailed as follows:

	30.09.2012	30.09.2011
Cash	15.498	14.829
Bank deposits	76.475.611	70.793.966
	76.491.109	70.808.795
Bank overdrafts (Note 9)	(1.605.467)	(650.020)
Cash and cash equivalents	74.885.642	70.158.775

During the period ended 30 September 2012, receipts from investments were as follows:

	Transaction Amount	Amount received
Sócasca –Recolha e Comércio de Recicláveis, S.A. (Note 4.4)	2.300.000 ---------------	200.000 ----------------
	2.300.000	200.000
	=========	=========

During the period ended 30 September 2011, receipts from investments were as follows:

	Transaction amount	Amount received
EDP – Produção Bioeléctrica, S.A. (a)	4.860.000	4.860.000
Sócasca –Recolha e Comércio de Recicláveis, S.A. (b)	200.000	200.000
	--------------- 5.060.000	---------------- 5.060.000
(a) – Repayment of loans granted	=========	=========

(b) – Advances received due to the sale of Socasca – Recolha e Comércio de Recicláveis, S.A. (Nota 4.4)

During the period ended 30 September 2012, payments from investments were as follows:

	Transaction amount	Amount paid
Other investments available for sale (Note 4.3)	4.050.469	4.050.469
	--------------- 4.050.469	---------------- 4.050.469
	=========	=========

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012

(Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

7. CURRENT AND DEFERRED TAXES

In accordance with current legislation, tax returns are subject to review and correction by the tax authorities during a four-year period (five years for Social Security), with the exception when there have been tax losses, cases with 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 Company tax returns for the years 2008 to 30 September 2012 are still subject to review.

The Board of Directors 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 30 September 2012.

The movements occurred in deferred tax assets and liabilities in the periods ended in 30 September 2012 and 2011 were as follows:

		2012
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1.1.2012	13.699.322	444.167
Effects on income statement:
Harmonization of depreciation rates	1.237.893	-
Other effects	744.893	(4.337)
Total effect on income statement	1.982.786	(4.337)
Effect on shareholders' funds:
Fair values of derivatives (Note 11)	2.812.210	-
Closing balance as of 30.09.2012	18.494.318	439.830
		2011
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1.1.2011	14.712.478	777.344
Effects on income statement:
Harmonization of depreciation rates	1.318.110	-
Other effects	110.853	(5.054)
Total effect on income statement	1.428.963	(5.054)
Effect on shareholders' funds:
Fair values of derivatives (Note 11)	(2.059.523)	-

Closing balance as of 30.09.2011 14.081.918 772.290

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012

(Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

8. SHARE CAPITAL

As of 30 September 2012 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.

At 9 February 2011 Altri, SGPS, S.A. was notified that pursuant to decision of the President of the Notaries and Registrars Institute (Instituto dos Registos e Notariado) the appeal brought by Altri against the decision of the Commercial Registry Office of Oporto, which on account of alleged doubts registered as provisional the corporate change approved at the General Shareholders Meeting of Altri held on 17 May 2010, specifically changing the nominal value of the shares in the company's capital (Altri shares) from 0.25 Euro to 0.125 Euro, as result of which the share capital of Altri, in the amount of 25,641,459.00 Euro was represented by 205,131,672 shares. On 22 February 2011, the shares began trading on NYSE Euronext Lisbon with the new nominal value, having the restatement operationally achieved by diving each share in two, on 25 February 2011.

As of 30 September 2012 there were no entities holding more than 20% of the Company's subscribed share capital.

9. BANK LOANS, OTHER LOANS AND REIMBURSABLE SUBSIDIES

As of 30 September 2012 and 31 December 2011, the captions "Bank loans", "Other loans" and "Reimbursable subsidies" can be detailed as follows: 30-09-2012

		Nominal Value			Book Value
	Current	Non current	Total	Current	Non current	Total
Bank loans	44.612.426	102.055.350	146.667.776	44.612.426	102.055.350	146.667.776
Bank overdrafts (Note 6)	1.605.467	-	1.605.467	1.605.467	-	1.605.467
Bank loans	46.217.893	102.055.350	148.273.243	46.217.893	102.055.350	148.273.243
Commercial paper	106.000.000	87.000.000	193.000.000	105.649.809	86.878.905	192.528.714
Bonds	-	375.000.000	375.000.000	-	372.839.936	372.839.936
Other loans	22.376.202	-	22.376.202	21.318.218	-	21.318.218
Other loans	128.376.202	462.000.000	590.376.202	126.968.027	459.718.841	586.686.868
Reimbursable incentives	20.028.482	28.180.219	48.208.701	20.028.482	28.180.219	48.208.701
	194.622.577	592.235.569	786.858.146	193.214.402	589.954.410	783.168.812
			31-12-2011
		Nominal Value			Book Value
	Current	Non current	Total	Current	Non current	Total
Bank loans	155.806.954	11.875.000	167.681.954	155.792.782	11.875.000	167.667.782
Bank overdrafts	1.328.932	-	1.328.932	1.328.932	-	1.328.932
Bank loans	157.135.886	11.875.000	169.010.886	157.121.714	11.875.000	168.996.714
Commercial paper	111.000.000	128.000.000	239.000.000	110.629.490	127.831.518	238.461.008
Bonds Other loans	- 18.086.789	375.000.000 -	375.000.000 18.086.789	- 17.029.024	372.046.493 -	372.046.493 17.029.024
Other loans	129.086.789	503.000.000	632.086.789	127.658.514	499.878.011	627.536.525
Reimbursable incentives	8.784.099	38.893.917	47.678.016	8.784.029	38.893.917	47.677.946
	295.006.774	553.768.917	848.775.691	293.564.257	550.646.928	844.211.185

As of 30 September 2012, there are bank overdrafts amounted to 15,500,000 Euro (11,650,000 Euro as of 30 September 2011), classified in the caption "Bank Loans".

The expenditures with the constitution of the loans were deducted from its nominal value, being these recognized as financial expenses along the loan's life period (Note 12).

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012 (Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

10. ACCUMULATED PROVISIONS AND IMPAIRMENT LOSSES

The movements occurred in provisions and impairment losses for the periods ended at 30 September 2012 and 2011 can be detailed as follows:

		30.09.2012
		Impairment losses in
	Provisions	accounts receivable	Total
Opening balance	1.149.668	6.851.677	8.001.345
Increases	770.000	-	770.000
Utilizations	-	-	-
Closing balance	1.919.668	6.851.677	8.771.345
		30.09.2011
		Impairment losses in
	Provisions	accounts receivable	Total
Opening balance	1.980.728	6.791.109	8.771.837
Increases	-	-	-
Utilizations	-	(44.304)	(44.304)
Closing balance	1.980.728	6.746.805	8.727.533

The increase in impariment losses occurred in the period ended 30 September 2012 were recorded against the caption "Payroll expenses" of the consolidated profit and loss statement, according to its purpose.

The amount recorded under the caption "Provisions", at 30 September 2012 and 2011, is the best estimate of the Administration in order to face all the losses that may be supported due to the general risks from the activity of Altri's Group.

11. DERIVATIVE FINANCIAL INSTRUMENTS

As of 30 September 2012 and 2011 the companies of Altri's Group had contracts concerning financial derivative instruments to hedge of variations in pulp price and interest rates being these instruments registered according to its fair value.

The companies of Altri's Group only use derivatives to hedge cash flows from the operations generated by its activity.

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012 (Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

As of 30 September 2012 and 2011 the detail of the financial derivative instruments are as follows:

	Pulp price hedging derivatives	Interest rates derivatives	Total
Opening balance as of 31.12.2011	(302.933)	(14.449.051)	(14.751.984)
Derivatives fair value variation/cessation
Effects on shareholders' funds Effects on the profit and loss statement	(9.801.398) -	(810.717) 2.377.518	(10.612.115) 2.377.518
Closing balance as of 30.09.2012	(10.104.331)	(12.882.250)	(22.986.581)
	Pulp price hedging derivatives	Interest rates derivatives	Total
Opening balance as of 31.12.2010	(8.735.277)	(14.721.501)	(23.456.778)
Derivatives fair value variation/cessation
Effects on shareholders' funds	6.503.834	1.267.950	7.771.784
Effects on the profit and loss statement	-	1.100.378	1.100.378
Closing balance as of 30.09.2011	(2.231.443)	(12.353.173)	(14.584.616)

12. FINANCIAL RESULTS

The financial results for the nine months periods ended at 30 September 2012 and 2011 are detailed as follows:

30-09-2012	30-09-2011
Financial expenses:
Interest 19.388.083	20.299.164
Other financial expenses 9.298.221	10.533.935
28.686.304	30.833.099
Financial income:
Interest 3.763.153	4.366.861
Other financial income 1.167.623	1.858.562
4.930.776	6.225.423

The caption "Other financial expenses" includes, mainly, expenses incurred with the establishment of the loans which are being recognized as costs through the life period of the respective loan (Note 9) and losses relative to interest rate financial derivative instruments (Note 11).

The "Gains and losses in associated companies and joint ventures" relate to the appropriation of the Group share in the results of the investments in the associated companies and joint ventures (Note 4.2).

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012 (Translation of notes originally issued in Portuguese – Note 20) (Amounts expressed in Euro)

13. EARNINGS PER SHARE

Earnings per share in the nine months periods ended as of 30 September 2012 and 2011 were calculated considering the following amounts:

	30-09-2012	30-09-2011
Share number considered 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 for continuing operations	39.674.225	23.135.916
Continuing operations earnings per share Basic Diluted	0,19 0,19	0,11 0,11
Net profit considered for the computation of basic and diluted earning for continuing and non-continuing activities	39.674.225	23.098.880
Continuing and non-continuing operations earnings per share Basic Diluted	0,19 0,19	0,11 0,11

14. OTHER INCOME

As of 30 September 2012 the caption of the statement of profit and loss "Other Income" is detailed as follows:

	30-09-2012
Investment and exploration subsidies	2.000.761
Gains obtained from the alienation of fixed assets	399.558
Other income	1.806.218
	4.206.537

15. OTHER EXPENSES

As of 30 September 2012 the caption of the statement of profit and loss "Other expenses" is detailed as follows:

	30-09-2012
Direct taxes and charges	1.052.223
Losses in commodities derivative contracts (Note 11)	3.936.226
Other costs	924.107
	5.912.556

16. SEGMENTAL INFORMATION

On 16 April 2008, the Board of Administration of Altri, S.G.P.S., S.A. approved a simple reorganization project of this society which implies the split of Altri's two business units that operates 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, and allows Altri Group to focus its activity on its core business, production and commercialization of bleached paper pulp form eucalyptus, so the Board of Directors believe that there is only one business segment and the management information is reported and analyzed on this basis.

ALTRI, S.G.P.S., S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF 30 SEPTEMBER 2012

(Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

17. RELATED PARTIES

The participated companies of the Group realize between them and at market prices, transactions that classifies as transactions with related parties.

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.

During the periods ended at 30 September 2012 and 2011, there were no transactions with the Directors of the Group and were no granted loans.

As of 30 September 2012 and 2011 the balances and transactions with related parties are as follow:

	Purchases and services		Sales and services		Interest income
Transactions	30.09.2012	30.09.2011	30.09.2012	30.09.2011	30.09.2012	30.09.2011
Associated companies and joint ventures (a)	1.093.923	1.129.174	3.422.244	3.443.728	503.638	483.224
Other related parties (b)	4.429.161	4.658.622	-	-	-	-
	5.523.084	5.787.796	3.422.244	3.443.728	503.638	483.224
		Accounts payable		Accounts receivable		Granted Loans
Balances	30.09.2012	30.09.2011	30.09.2012	30.09.2011	30.09.2012	30.09.2011
Associated companies and joint ventures (a)	143.298	306.366	540.541	187.466	16.807.905	16.807.905

752.830 322.024 665.320 187.466 16.807.905 16.807.905

Other related parties (b) 609.532 15.658 124.779 - - -

(a) All entities consolidated by the equity method as of 30 September 2012 and 2011 (Note 4.2);

(b) Were considered as related parties the companies of Ramada Group.

Besides the transactions identified above, there are no other transactions with related companies.

Besides the companies included in consolidation (Note 4), entities considered as related parties as of 30 September 2012 can be detailed as follow:

Adcom Media Anúncios e Publicidade, S.A. Alteria, S.G.P.S., S.A. Storax – Equipements, S.A. Caderno Azul, S.G.P.S., S.A. Caminho Aberto, S.G.P.S., S.A. Cofihold, S.G.P.S., S.A. Cofina, SGPS, S.A. Cofina B.V. Cofina Media, SGPS, S.A. Cofina Eventos e Comunicação, S.A. Destak Brasil – Editora de Publicações, S.A. Destak Brasil – Empreendimentos e Participações, S.A. Edisport – Sociedade de Publicações, S.A. Edirevistas – Sociedade Editorial, S.A. Efe Erre Participações, S.G.P.S., S.A. Elege Valor, S.G.P.S., S.A. F. Ramada – Investimentos, SGPS, S.A. F. Ramada – Aços e Indústrias, S.A. F. Ramada – Produção e Comercialização de Estruturas Metálicas de Armazenagem, S.A. F. Ramada II, Imobiliária, S.A. F. Ramada Serviços de Gestão, Lda. Grafedisport – Impressão e Artes Gráficas, S.A. Livre Fluxo, S.G.P.S., S.A. Malva – Gestão Imobiliária, S.A. Mediafin, SGPS, S.A. Metronews – Publicações S.A. Mercados Globais – Publicação de Conteúdos, Lda.

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 SEPTEMBER 2012

(Translation of notes originally issued in Portuguese – Note 20)

(Amounts expressed in Euro)

Presselivre – Imprensa Livre, S.A. Sociedade Imobiliária Porto Seguro – Investimentos Imobiliários, S.A. Storax Racking Systems, Ltd. Storax Benelux Transjornal – Edição de Publicações, S.A. Torres da Luz – Investimentos Imobiliários, S.A. Universal Afir – Aços, Máquinas e Ferramentas, S.A. VASP – Sociedade de Transportes e Distribuições, Lda Web Works – Desenvolvimento de Aplicações para Internet, S.A. Valor Autêntico, SGPS, S.A.

18. APPLICATION OF THE NET INCOME

Relating to the year ended in 2011, the Board of Directors proposed, in its general report, that the individual net loss of Altri, SGPS, S.A. in the amount of 2,913,284.89 Euro will be transferred to returned earnings. The proposal was approved in the General Assembly held on 26 April 2012.

The Board of Directors proposed also the distribution of free reserves in the amount of 4,102,633.44 Euro, as dividends, corresponding to a dividend of 0.02 Euro by share, this proposal was also approved on the General Assembly held on 26 April 2012.

19. FINANCIAL STATEMENTS APPROVAL

The financial statements were approved by the Board of Directors and authorized for issuance in 6 November 2012.

20. EXPLANATION ADDED FOR TRANSLATION

These consolidated financial statements are a translation of financial statements originally issued in Portuguese, prepared using accounting policies consistent with the International Financial Reporting Standards and with accordance with the International Accounting Standard 34 – Interim Financial Reporting, 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 Board of Directors, Paulo Jorge dos Santos Fernandes – President João Manuel Matos Borges de Oliveira Pedro Macedo Pinto de Mendonça Domingos José Vieira de Matos Laurentina da Silva Martins