Altri SGPS — Interim / Quarterly Report 2013

May 31, 2013

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 – First Quarter of 2013 (Unaudited)

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

Income Statement

thousand euros	1Q 2012	4Q 2012	1Q 2013	1Q13/4Q12 Var%	1Q13/1Q12 Var%
Sales Services rendered Other Income Total Revenues	119.897 1.727 1.176 122.800	129.638 2.181 8.513 140.332	140.330 2.157 2.700 145.187	8,2% -1,1% -68,3% 3,5%	17,0% 24,9% s s 18,2%
Costs of sales External supplies and services Payroll expenses Other expenses Provisions and impairment losses	51.259 34.952 6.974 1.025 0	49.317 38.547 7.231 4.440 4.544	61.233 37.929 6.740 2.981 0	24,2% -1,6% -6,8% -32,9% s s	19,5% 8,5% -3,3% 190,7%
Total expenses (a) EBITDA (b) Margin	94.210 28.590 23,3%	104.080 36.251 25,8%	108.883 36.304 25,0%	4,6% 0,1% -0,8 pp	15,6% 27,0% +1,7 pp
Amortisation and depreciation	12.407	11.774	12.373	5,1%	-0,3%
EBIT (c) Margin	16.182 13,2%	24.477 17,4%	23.931 16,5%	-2,2% -1,0 pp	47,9% +3,3 pp
Gains and losses in associated companies and joint ventures Financial expenses Financial income Finacial profit	131 -10.173 1.651 -8.391,3	427 -11.219 -650 -11.442,2	474 -7.850 1.282 -6.094,0	11,1% -30,0% -297,1% -46,7%	263,3% -22,8% -22,4% -27,4%
Profit before income tax	7.791	13.035	17.837	36,8%	s s
Income tax Minority interest	-1.436 1	-514 14	-3.638 4	s s s.s.	s s s s
Profit for the period from discontinued operations attributable to parent company's shareholders	6.354	12.508	14.195	13,5%	123,4%

(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 results in the first quarter of 2013 reflect a record turnover that reached 145 million euro, motivated by a sales volume that reached 246 thousand tons, that is to say, a growth of 8% compared to the first quarter of 2012. The first quarter of 2013 was also marked by occasional difficulties in wood supply, due to an unusually rainy winter, hardening the access to the forest. For this reason it was necessary to use wood from outside the Iberian Peninsula.

During the first quarter of 2013, total revenues reached 145.2 million euro, representing an increase of 18% compared with the same period of the previous year. Comparing with the fourth quarter of 2012 (total revenues of 140.3 million euro), total revenues increased about 4%.

On the first quarter of 2013, Altri produced 240.8 thousand tons of pulp, which corresponds to an increase of 5% compared to the 230.4 thousand tons of pulp produced in the first quarter of 2012.

In terms of sales, during the first quarter of 2013, approximately 245.9 thousand tons of pulp were sold, plus 8% compared to the pulp sales made in the first quarter of 2012.

Evolution of pulp sales between 1Q 2013 and 1Q 2012 by industrial unit (thousands tons)

Pulp sales reached approximately 120.7 million euro, representing 83% of Altri's total revenues.

On the first three months of 2013, Altri exported 232 thousand tons of pulp, which represented 95% of Altri's total sales. The amount of these exports reached 114 million euro.

Net revenues of energy associated with cogeneration and other forest components amounted to 8.8 million euro, which represents an increase of 25% compared with the net revenue registered in the first quarter of 2012 (7.1 million euro).

Total costs, excluding depreciation, financial costs and tax, amounted to 108.9 million euro, a 16% increase compared with the same period of the previous year and a 5% increase compared with the fourth quarter of 2012. However, it is important to notice that the sales increase reached 17% compared with the first quarter of 2012.

Payroll expenses recorded a decrease of 3% when compared with the same period of 2012. On the end of the first quarter of 2013, Altri had 643 employees.

EBITDA of 36.3 million euro and margin of 25%

On the first quarter of 2013 EBITDA reached approximately 36.3 million euro, similar to EBITDA recorded on the fourth quarter of 2012 and representing a 27% increase compared to the same period of 2012. EBITDA margin reached 25%.

Operating profit (EBIT) was 23.9 million euro, which corresponds to an increase of 48% compared to the EBIT of the first quarter of 2012.

Net income reached 14.2 million euro, an increase of 13.5% compared to the income recorded on the fourth quarter of 2012 and an increase of 123% compared with the same period of the previous year.

Net debt decreased 68 million euro in one year to 614 million euro

Total investment made in the first quarter of 2013 amounted to 4.1 million euro.

The nominal remunerated debt net of cash and investments available for sale in March 31, 2013 amounted to 613.9 million euro, having reduced 5.8 million compared to December 31, 2012. It is important to notice that in the end of the first quarter of 2012, Altri had a net nominal debt of about 682.1 million euro. Thus, in one year the Group reduced its net debt in more than 68 million euro.

Financial Information - 1Q 2013

Key balance sheet indicators

thousand euro	2012	1Q 2013	Var%
Biological assets	108.034,8	107.956,7	0%
Tangible assets	424.105,2	415.153,8	-2%
Goodw ill	265.531,4	265.531,4	0%
Investments available for sale	14.981,9	14.953,9	0%
Others	41.153,4	41.902,7	2%
Total non current assets	853.806,6	845.498,5	-1%
Inventories	47.440,3	43.130,5	-9%
Customers	94.859,4	101.799,5	7%
Cash and cash equivalentes	112.392,5	98.750,5	-12%
Others	19.861,2	22.688,2	14%
Total current assets	274.553,4	266.368,7	-3%
Total assets	1.128.360,0	1.111.867,2	-1%
Shareholder's equity and minority interests	183.926,9	195.980,0	7%
Bank loans	103.556,9	90.404,1	-13%
Other loans	454.999,1	455.279,4	0%
Reimbursable subsidies	22.770,2	12.539,4	-45%
Others	41.092,2	50.292,1	22%
Total non current liabilities	622.418,4	608.515,0	-2%
Bank loans	45.467,2	42.053,0	-8%
Other current loans	139.404,0	136.443,1	-2%
Reimbursable subsidies	11.694,6	1.502,0	-87%
Suppliers	56.343,4	54.181,8	-4%
Others	69.105,5	73.192,3	6%
Total current liabilities	322.014,7	307.372,3	-5%

Financing needs are fully assured, holding the Group 113.7 million euro of cash and cash equivalents and investments available for sale, as of 31 March 2013. Additionally, Altri holds 60 million euro in available financing lines which are not being used.

In terms of ratios, considering the trailing 12 months EBIT (102.5 million euro), Altri shows in the end of the first quarter of 2013, a Return on Capital Employed (EBIT/(net debt + equity)) of 12.7%.

The Return on Equity (Net profit/equity), based on the trailing 12 months earnings, reached about 30.2%.

Financial Information - 1Q 2013

Pulp market

The first quarter of 2013 was characterized by a slight decrease of about 0.3% of total demand of hardwood pulp that amounted to 6.9 million of tons. In more detail, the Chinese demand decreased about 3.1%, while in Western Europe and in the United States of America (USA) there were increases of 1.7% and 7.6%, respectively.

However, it is important to notice that in March, total demand of this kind of pulp recorded an increase of 1.8% compared with the same month of 2012, with Chinese and USA consumption recording increases of 7.1% and 7.7%, respectively.

In this quarter, the level of deliveries against the installed capacity (shipment-to-capacity ratio) of hardwood pulp of eucalyptus reached 92%. Considering only March this ratio amounted to 99%.

During the December 2012, the producers announced an increase of 20 USD/ton on the price, to be implemented from January 2013 onwards, fixing pulp price sale (BEKP) on 800 USD/ton. During February 2013, a new increase (+20 USD/ton) was announced to be implemented from March onwards, fixing the price market in 820 USD/ton. On average, during the first quarter of 2013, market price of pulp (BEKP) reached 788 USD/ton, corresponding to approximately 596 EUR/ton (average exchange rate for the period of 1.32).

It is also important to refer that, according to Hawkins Wright, during 2013 it is expected that producers with capacity for more than 2.2 million tons of tissue will start operating, being more than 60% of this capacity located in China.

Market price evolution in BEKP pulp in Europe since 1990 to the end of 1st Q 2013 (EUR) Source: Hawkins Wright

Financial Information - 1Q 2013

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 84 thousand hectares of forest in Portugal entirely certified from Forest Stewardship Council® (FSC®)¹ and from the Program 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 2012 that reached 910 thousand tons/year of pulp bleached eucalyptus. The company has some ongoing small projects of optimizing operating efficiency which will allow, in the medium term, the increase of the production capacity.

Altri's organic structure is as follows:

Oporto, May 8th 2013

1 FSC-C004615

CONSOLIDATED FINANCIAL STATEMENTS

ALTRI, SGPS, S.A.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2013 AND 31 DECEMBER 2012

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

ASSETS	Notes	31.03.2013	31.12.2012
NON CURRENT ASSETS:
Biological assets		107.956.673	108.034.768
Tangible fixed assets		415.153.826	424.105.163
Investment property		466.161	468.006
Goodwill		265.531.404	265.531.404
Intangible assets		468.760	605.388
Investments in associated companies and joint ventures	4.2	6.811.804	6.337.694
Investments available for sale	4.3	14.953.937	14.981.903
Other non current assets		425.048	384.915
Deferred tax assets	7	33.730.910	33.357.371
Total non current assets		845.498.523	853.806.612
CURRENT ASSETS:
Inventories		43.130.545	47.440.279
Customers		101.799.457	94.859.425
Other debtors		4.291.920	7.241.482
State and other public entities		14.766.172	9.810.537
Other current assets		3.368.335	2.547.443
	11	261.783	261.783
Cash and cash equivalents	6	98.750.514	112.392.485
Total current assets		266.368.726	274.553.434
Total assets		1.111.867.249	1.128.360.046
SHAREHOLDERS' FUNDS AND LIABILITIES		31.03.2013	31.12.2012
SHAREHOLDERS' FUNDS:
Share capital	8	25.641.459	25.641.459
Legal reserve		2.862.981	2.862.981
Other reserves		153.148.288	103.112.415
Consolidated net profit / (loss)		14.195.231	52.181.891
Total shareholders' funds attributable to the parent company's shareholders		195.847.959	183.798.746
Non controlling interests		132.042	128.166
Total Shareholders' funds		195.980.001	183.926.912
LIABILITIES:
NON CURRENT LIABILITIES:
Bank loans	9	90.404.063	103.556.923
Other loans	9	455.279.425	454.999.132
Reimbursable subsidies	9	12.539.423	22.770.236
Other non current creditors		528.802	528.802
Other non current liabilities		31.118.184	22.096.030
Deferred tax liabilities	7	17.109.752	16.931.978
Provisions	10	1.535.342	1.535.342
Total non current liabilities		608.514.991	622.418.443
CURRENT LIABILITIES:
Bank loans	9	42.053.034	45.467.181
Other loans	9	136.443.072	139.404.040
Reimbursable subsidies	9	1.501.997	11.694.604
Suppliers		54.181.839	56.343.385
Other current creditors		9.214.586	6.679.435
State and other public entities		8.297.168	5.091.056
Other current liabilities		33.901.294	35.221.194
Derivatives	11	21.779.267	22.113.796
Total current liabilities		307.372.257	322.014.691
Total shareholders' funds and liabilities		1.111.867.249	1.128.360.046

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

ALTRI, SGPS, S.A.

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS FOR THE THREE MONTHS PERIODS ENDED 31 MARCH 2013 AND 2012

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

	Notes	31.03.2013	31.03.2012
Sales		140.330.184	119.897.306
Services rendered		2.156.930	1.726.576
Other income	14	2.699.703	1.176.302
Cost of sales		(61.232.518)	(51.259.403)
External supplies and services		(37.929.067)	(34.952.151)
Payroll expenses		(6.740.489)	(6.973.621)
Amortisation and depreciation		(12.372.723)	(12.407.423)
Other costs	15	(2.980.663)	(1.025.255)
Gains and losses in associated companies and joint ventures	12	474.109	130.513
Financial expenses	12	(7.849.989)	(10.172.838)
Financial income	12	1.281.848	1.651.002
Profit before income tax		17.837.325	7.791.008
Income tax		(3.638.218)	(1.435.786)
Consolidated net profit		14.199.107	6.355.222
Attributable to:
Parent company's shareholders	13	14.195.231	6.356.432
Non controlling interests		3.876	(1.210)
		14.199.107	6.355.222
Earnings per share:
Basic	13	0,07	0,03
Diluted	13	0,07	0,03

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

The official chartered of accounts The Board of Directors

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

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE THREE MONTHS PERIODS ENDED 31 MARCH 2013 AND 2012

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

	31.03.2013	31.03.2012
Net consolidated profit / (loss) for the period	14.199.107	6.355.222
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	(2.115.888)	(8.492.392)
Change in fair value of investments available for sale	(30.000)	-
	(2.145.888)	(8.492.392)
Other comprehensive income of the period	(2.145.888)	(8.492.392)
Total comprehensive income for the period	12.053.219	(2.137.170)
Attributable to:
Shareholders' of the parent company	12.049.343	(2.135.960)
Non controlling interests	3.876	(1.210)

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

The official chartered of accounts The Board of Directors

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYFOR THE THREE MONTHS PERIODS ENDED 31 MARCH 2013 AND 2012

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

				Att ribu tab le t	he o t t co pa ren mp	's s ha reh old any ers
					Oth er res erv	es
					Oth ers
					and res erv es				No n	To tal
				He dg ing	ain ed ret	To tal oth ers			llin tro con g	sha reh old er's
	No tes	Sh ital are ca p	Le l re ga ser ve	res erv es	rnin ea gs	res erv es	Ne rof it t p	To tal	inte ts res	fun ds
Ba lan of 1 J 20 12 ce as an ua ry		25 .64 1.4 59	2.8 62 .98 1	( 7.6 85 .74 9)	97 .27 0.7 55	89 .58 5.0 06	22 .56 62 7.7	14 0.6 .20 8 57	10 5.4 21	14 0.7 62 .62 9
Ap iati of t he sol ida ted rof it o f 2 t p 01 1 pro pr on con ne		-	-	-	22 .56 7.7 62	22 .56 7.7 62	( 62) 22 .56 7.7	-	-	-
Oth ers		-	-	-	( ) 18. 743	( ) 18. 743	-	( ) 18. 743	-	( ) 18. 743
To tal hen siv e in e f the riod com pre com or pe		-	-	( 8.4 92 .39 2)	-	( 8.4 92 .39 2)	6.3 56 .43 2	( 2.1 35 .96 0)	( 1.2 10)	( 2.1 37 .17 0)
of Ba lan 31 Ma rch 20 12 ce as		25 .64 1.4 59	2.8 62 .98 1	( 1) 16. 178 .14	11 9.8 19. 774	10 3.6 41 .63 3	6.3 56 .43 2	13 8.5 02 .50 5	10 4.2 11	13 8.6 06 .71 6
of Ba lan 1 J 20 13 ce as an ua		25 .64 1.4 59	2.8 62 .98 1	( 9) 12. 956 .61	11 6.0 69 .03 4	10 3.1 12. 41 5	52 .18 1.8 91	18 3.7 98 .74 6	12 8.1 66	18 3.9 26 .91 2
ry Ap iati of t he sol ida ted rof it o f 2 012 t p on con ne					52 .18 1.8 91	52 .18 1.8 91	( 52 .18 1.8 91)
pro pr Oth ers		-	-	-	( 130 )	( 130 )		- ( 130 )	-	- ( 130 )
To tal hen siv e in e f the riod com com or		-	-	- ( 2.1 15. 888 )	( 30 .00 0)	( 2.1 45 .88 8)	- 14 .19 5.2 31	12 .04 9.3 43	- 3.8 76	12 .05 3.2 19
pre pe Ba lan of 31 Ma rch 20 13 ce as	8	- 25 .64 1.4 59	- 2.8 62 .98 1	( 15. 072 .50 7)	16 8.2 20 .79 5	15 3.1 48 .28 8	14 .19 5.2 31	19 5.8 47 .95 9	13 2.0 42	19 5.9 80 .00 1

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 THREE MONTHS PERIODS ENDED 31 MARCH 2013 AND 2012

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

A Operating activities: 27.605.593 11.305.085 Cash flow from operating activities (1) Investment activities: Receipts relating to: Investments 6 - 200.000 Tangible assets 24.945 222.141 Investment subsidies 57.120 391.787 Interest and similar income 95.222 1.085.421 Payments relating to: Investments 6 (12.750) (9.000) Investment subsidies (4.035.948) - Intangible assets - (3.223) Tangible assets (3.381.210) (2.481.442) Cash flow from investment activities (2) (7.252.621) (594.316) Financing activities: Receipts relating to: Loans obtained 3.948.235 9.068.071 Payments relating to: Interest and similar costs (14.436.536) (14.114.063) Loans obtained (23.704.347) (21.910.818) Cash flow from financing activities (3) (34.192.648) (26.956.810) Cash and cash equivalents at the beginning of the period 110.624.494 111.418.007 Variation of cash and cash equivalents: (1)+(2)+(3) (13.839.676) (16.246.041) Cash and cash equivalents at the end of the period 6 96.784.818 95.171.966	Notes	31.03.2013	31.03.2012

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

The official chartered of accounts The Board of Directors

(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 Euronext Lisbon 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. 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 foreseen 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 analysed 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 31 March 2013 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 2012.

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 31 MARCH 2013 (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 head offices, percentage participation held and main activity as of 31 March 2013 and 31 December 2012, are as follows:

Investment management and commercialization of pulp
ith forests and landscapes

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 31 March 2013 and 31 December 2012 are as follows:

Company Percentage held		Activity
	2013	2012
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.

(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 three months period ended on 31 March 2013 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.	566.432	3.814.466	1.699.294	420.690
Joint ventures:
EDP – Produção Bioeléctrica, S.A.	6.245.372	146.749.682	14.083.141	732.195
	6.811.804

(a) – Includes loans granted.

4.3 INVESTMENTS AVAILABLE FOR SALE

As of 31 March 2013 and 31 December 2012 the investments available for sale are as follows:

Company		Book value
	2013	2012
Rigor Capital - Produção de Energia. Lda.	10.527.397	10.527.397
Others investments	4.426.540	4.454.506
	14.953.937	14.981.903

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.

The caption "Other investments" corresponds, mainly, to shares listed in the stock exchange which are recorded at their market value.

5. CHANGES OCCURED IN THE CONSOLIDATION PERIMETER

During the period ended 31 March 2013, there were no changes in the consolidation perimeter compared to 31 December 2012.

6. CASH AND CASH EQUIVALENTS

As of 31 March 2013 and 2012, the caption "Cash and cash equivalents" can be detailed as follows:

	31.03.2013	31.03.2012
Cash	18.887	25.842
Bank deposits	98.731.627	97.204.284
	98.750.514	97.230.126
Bank overdrafts (Note 9)	(1.965.696)	(2.058.160)
Cash and cash equivalents	96.784.818	95.171.966

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

(Amounts expressed in Euro)

During the three months period ended 31 March 2012, collections from investments were as follows:

Sócasca – Recolha e Comércio de Recicláveis, S.A.	Transaction Amount	Amount received
(Sold in 2011)	2.300.000	200.000
	---------------	----------------
	2.300.000	200.000
	=========	=========

During the three months period ended 31 March 2013, payments from investments were as follows:

Amount	Amount paid
12.750	12.750
12.750	---------------- 12.750 =========
	Transaction --------------- =========

During the three months period ended 31 March 2012, payments from investments were as follows:

	Transaction Amount	Amount paid
Investments available for sale (Note 4.3)	9.000 ---------------	9.000 ----------------
	9.000	9.000
	=========	=========

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 since 2009 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 31 March 2013.

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

(Amounts expressed in Euro)

The movements occurred in deferred tax assets and liabilities in the three months periods ended in 31 March 2013 and 2012 were as follows:

		2013
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1.1.2013	33.357.371	16.931.978
Effects on income statement:
Harmonization of depreciation rates	339.203	-
Other effects	(258.739)	177.774
Total effect on income statement	80.464	177.774
Effect on shareholders' funds:
Fair values of derivatives	293.075	-
Closing balance as of 31.03.2013	33.730.910	17.109.752
		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	412.631	-
Other effects	129.923	65.095
Total effect on income statement	542.554	65.095
Effect on shareholders' funds:
Fair values of derivatives	3.061.883	-
Closing balance as of 31.03.2012	17.303.759	509.262

8. SHARE CAPITAL

As of 31 March 2013 the Company's fully subscribed and paid up capital consisted of 205,131,672 shares with a nominal value of 12.5 cents of Euro each.

As of 31 March 2013 there were no entities holding more than 20% of the Company's subscribed share capital.

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

(Amounts expressed in Euro)

9. BANK LOANS, OTHER LOANS AND REIMBURSABLE SUBSIDIES

As of 31 March 2013 and 31 December 2012, the captions "Bank loans", "Other loans" and "Reimbursable subsidies" can be detailed as follows:

			31-03-2013
		Nominal Value			Book Value
	Current	Non current	Total	Current	Non current	Total
Bank loans	40.146.394	90.404.063	130.550.457	40.087.338	90.404.063	130.491.401
Bank overdrafts (Note 6)	1.965.696	-	1.965.696	1.965.696	-	1.965.696
Bank loans	42.112.090	90.404.063	132.516.153	42.053.034	90.404.063	132.457.097
Commercial paper	105.500.000	82.000.000	187.500.000	105.170.988	81.910.495	187.081.483
Bonds Other loans	- 32.408.817	375.000.000 -	375.000.000 32.408.817	- 31.272.084	373.368.930 -	373.368.930 31.272.084
Other loans	137.908.817	457.000.000	594.908.817	136.443.072	455.279.425	591.722.497
Reimbursable subsidies	1.501.997	12.539.423	14.041.420	1.501.997	12.539.423	14.041.420
	181.522.904	559.943.486	741.466.390	179.998.103	558.222.911	738.221.014

			31-12-2012
		Nominal Value			Book Value
	Current	Non current	Total	Current	Non current	Total
Bank loans	43.699.190	103.556.923	147.256.113	43.699.190	103.556.923	147.256.113
Bank overdrafts	1.767.991	-	1.767.991	1.767.991	-	1.767.991
Bank loans	45.467.181	103.556.923	149.024.104	45.467.181	103.556.923	149.024.104
Commercial paper	106.000.000	82.000.000	188.000.000	105.717.328	81.894.700	187.612.028
Bonds	-	375.000.000	375.000.000	-	373.104.432	373.104.432
Other loans	34.857.197	-	34.857.197	33.686.712	-	33.686.712
Other loans	140.857.197	457.000.000	597.857.197	139.404.040	454.999.132	594.403.172
Reimbursable subsidies	11.694.604	22.770.236	34.464.840	11.694.604	22.770.236	34.464.840
	198.018.982	583.327.159	781.346.141	196.565.825	581.326.291	777.892.116

As of 31 March 2013, there are bank overdrafts amounted to 10,001,000 Euro (15,260,000 Euros as of 31 March 2012), 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).

(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 three months periods ended at 31 March 2013 and 2012 can be detailed as follows:

		31.12.2013
		Impairment losses in
	Provisions	accounts receivable	Total
Opening balance	1.535.342	5.536.965	7.072.307
Increases	-	-	-
Utilizations	-	(577.327)	(577.327)
Closing balance	1.535.342	4.959.638	6.494.980

		31.03.2012
		Impairment losses in
	Provisions	accounts receivable	Total
Opening balance	1.149.668	6.851.677	8.001.345
Increases	-	-	-
Utilizations	-	-	-
Closing balance	1.149.668	6.851.677	8.001.345

The decrease of impairment losses occurred in the three months period ended 31 March 2013 relates to the use of impairment losses recorded in 2012.

The amount recorded under the caption "Provisions" at 31 March 2013 and 2012 is the best estimate of the Management 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 31 March 2013 and 2012 the companies of Altri's Group had contracts concerning financial derivative instruments to hedge variations in pulp price, interest rates and exchange 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.

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

(Amounts expressed in Euro)

As of 31 March 2013 and 2012 the detail of the financial derivative instruments and its movements occurred in the three months period then ended are as follows:

	Pulp price hedging derivatives	Interest rate derivatives	Exchange rate derivates	Total
Opening balance as of 31.12.2012	(8.696.330)	(13.417.466)	261.783	(21.852.013)
Derivatives fair value variation/cessation
Effects on shareholders' funds	(3.543.568)	1.415.141	-	(2.128.427)
Effects on the profit and loss statement	-	2.462.956	-	2.462.956
Closing balance as of 31.03.2013	(12.239.898)	(9.539.369)	261.783	(21.517.484)
	Pulp price hedging derivatives	Interest rate 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	(11.110.570)	(443.705)	(11.554.275)
Effects on the profit and loss statement	-	1.790.739	1.790.739
Closing balance as of 31.03.2012	(11.413.503)	(13.102.017)	(24.515.520)

12. FINANCIAL RESULTS

The financial results for the three months periods ended at 31 March 2013 and 2012 are detailed as follows:

	31-03-2013	31-03-2012
Financial expenses:
Interest	5.031.586	6.886.334
Other financial expenses	2.818.403	3.286.504
	7.849.989	10.172.838
Financial income:
Interest	601.413	876.069
Other financial income	680.435	774.933
	1.281.848	1.651.002

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).

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

(Amounts expressed in Euro)

13. EARNINGS PER SHARE

Earnings per share in the three months periods ended as of 31 March 2013 and 2012 were calculated considering the following amounts:

	31-03-2013	31-03-2012
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	14.195.231	6.356.432
Earnings per share Basic Diluted	0,07 0,07	0,03 0,03

14. OTHER INCOME

As of 31 March 2013 and 2012 the caption of the statement of profit and loss "Other Income" is detailed as follows:

	31-03-2013	31-03-2012
Investment and exploration subsidies	2.245.862	669.272
Gains obtained from the alienation of fixed assets	1.021	23.487
Other income	452.820	483.543
	2.699.703	1.176.302

15. OTHER EXPENSES

As of 31 March 2013 and 2012 the caption of the statement of profit and loss "Other expenses" is detailed as follows:

	31-03-2013	31-03-2012
Direct taxes and charges	282.491	359.832
Losses in commodities derivative contracts (Note 11)	2.374.376	350.922
Other costs	323.796	314.501
	2.980.663	1.025.255

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.

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

(Amounts expressed in Euro)

17. RELATED PARTIES

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

In the consolidation procedures the transactions between the companies included in consolidation by the full consolidation method are eliminated, as the consolidated financial statements present the parent company and its subsidiaries information as one single company, therefore they are not disclosed in this note.

During the three months periods ended at 31 March 2013 and 2012, there were no transactions with and neither granted loans tothe Directors of the Group.

As of 31 March 2013 and 2012 the balances and transactions with related parties are as follow:

Interest income 31.03.2012
152.086
-
152.086
Granted loans
31.03.2012
16.807.905
-
16.807.905

(a) All entities consolidated by the equity method as of 31 March 2013 and 2012 (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 31 March 2013 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. Actium Capital, 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. Presselivre – Imprensa Livre, S.A. Sociedade Imobiliária Porto Seguro – Investimentos Imobiliários, S.A.

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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS OF 31 MARCH 2013

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

(Amounts expressed in Euro)

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 31 December 2012, the Board of Directors proposed, in its annual report, that the individual net loss of Altri, SGPS, S.A. in the amount of 4,145,968.07 Euro would be transferred to returned earnings. The proposal was approved in the General Shareholders' Meeting held on 18 April 2013.

The Board of Directors also proposed the distribution of free reserves in the amount of 5,128,291.80 Euro, as dividends, corresponding to a dividend of 0.025 Euro per share, this proposal was also approved in the General Shareholders' Meeting held on 18 April 2013.

19. FINANCIAL STATEMENTS APPROVAL

The financial statements were approved by the Board of Directors and authorized for issuance in 7 May 2013.

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