Altri SGPS — Interim / Quarterly Report 2015

Jul 30, 2015

REPORT AND ACCOUNTS

30 June 2015

INTRODUCTION 4
STOCK EXCHANGE EVOLUTION 6
GROUP'S ACTIVITY 8
FINANCIAL ANALYSIS 11
OUTLOOK 14
CORPORATE GOVERNANCE 15
LEGAL MATTERS 16
CLOSING REMARKS 18
STATEMENT UNDER ARTICLE 246, PARAGRAPH 1, C) OF THE SECURITIES CODE 21
DECLARATION OF REPONSIBILITY 21
CONSOLIDATED FINANCIAL STATEMENTS AND NOTES 25

(This is a translation of a document originally issued in Portuguese. In the event of discrepancies, the Portuguese language version prevails – Note 20)

To the Shareholders

Pursuant to the legal requirements, the Board of Directors of Altri, S.G.P.S., S.A. ('Altri') hereby presents its Directors' Report for the first semester of 2015.

INTRODUCTION

Altri was incorporated as of March 2005, as a result of Cofina's demerger. 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 electric energy from forest renewable sources, namely industrial cogeneration, 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 of 990 thousand tons/year of bleached eucalyptus pulp in 2014. During the first half of 2015 was completed a set of small investments aimed at increasing the production capacity of Celbi and Caima.Thus, Caima, at the end of the project of conversion to pulp specialties sector, will produce around 105,000 tons/year. On the other hand, Celbi will hold an installed capacity exceeding 700,000 tons/year 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 the F. Ramada, which was devoted to retail steel and development of industrial solutions for storage systems. In June 2008 took place the split of the F. Ramada. The strategic rationale of this operation lies in focusing exclusively Altri on their 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 and by the development of a set of expansion activity projects.

For a better valuation of forest resources, Altri acquired in 2005, 50% of EDP Produção - Bioeléctrica, S.A., for, in partnership with EDP, producing electricity from forest biomass. This company is leader in its market segment with a share licenses to the production of electricity by forest biomass of 50%.

¹ FSC‐C004615

Altri's structure as of 30 June 2015 is as follows:

STOCK EXCHANGE EVOLUTION

(Note: The PSI 20 was considered as an index with the same initial value to the shares in question to enable a better comparison of the price variation.)

Altri's shares recorded an increase of 32% in the first half of 2015, having strongly overcome the index which rose only 16% in the same period.

Altri's share price closed the first half of the year at 3.267 Euro per share. The market capitalization at June 30, 2015 was about 670 million Euro.

During the first half of the year, Altri's shares were trade at a maximum price of 4.3 Euro per share and the minimum of 2.498 Euro per share. In total, 66.5 million shares were traded in the first half of the year, equivalent to 32% of the issued capital.

The main events that marked the evolution of the company's shares in the first half of the year may be described chronologically as follows:

REPORT AND ACCOUNTS 1H2015 I. DIRECTORS' REPORT

• On February 20, 2105, the Company assumed, with effects on that date, the contractual position held by its subsidiary Celulose Beira Industrial (Celbi), S.A. in the bond loan "CELBI 2014/2020", issued by private placement, on the April 16, 2014, in the amount of Euro 50.000.000 (fifty million Euro), for a period of six years. This loan is now named "ALTRI 2014/2020";
• On February 27, the Group announced to the market its financial performance for the year 2014, reaching a consolidated net profit of 37 million Euro. The total revenues amounted to 553 million Euro, representing a decrease of 3% compared to 2013. The EBITDA amounted to 114 million Euro. On that date the shares closed at 3.024 Euro per share;
• In the statement made on April 23, 2015, the Company informed the market that the dividends for the year 2014 that correspond to 0.08 Euro per share, would be paid from May 11 onwards;
• In the announcement made on May 8, Altri announced the results of the first quarter of 2015. In that period, the Group reached total revenue of 154 million Euro. EBITDA reached 46.6 million Euro and the net profit amounted to 22.2 million Euro.

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, date of the demerger process of the business of steel and storage systems to F. Ramada Investmentos 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 perception of value.

The main participations where Altri holds the majority of capital are as follows:

• Caima Indústria de Celulose (Constância) producer and distributor of paper pulp;
• Celulose 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

Altri's complete structure of participation as of 30 June 2015 is as follows:

Pulp market

At the end of the second quarter of 2015, the price of bleached pulp hardwood type, according to the market index FOEX, reached 797 USD, which represented 710 EUR.

During the second quarter, the average price reached 781 USD (709 EUR), which corresponds to an increase of 4% in USD and an increase of about 7% in EUR compared to the first quarter of the year. Comparing to the same period of 2014, the price recorded an increase of 4% in USD and 29% in EUR.

Market price evolution in BEKP pulp in Europe since 2003 to the end of April 2015 (EUR)

Source: FOEX

During the first half of 2015, the three industrial units of Altri produced 481.2 thousand tons of pulp and sold 487.9 thousand tons of pulp.

Evolution of pulp production between 1st H2014 and 1st H 2015 by mill (tons)

The Celbi industrial plant held in April 2015 an annual stoppage for maintenance and reinforcement of the operating efficiency of about 15 days. Caima, held in June 2015 the necessary stoppage for the conclusion of the conversion project for specialty pulp.

As a result of the schedule stoppages held in the second quarter of 2015, the three industrial units of Altri produced 224.8 thousand tons of pulp (-12% in relation to the production of the same period of 2014 and in relation to the first quarter of 2015), and were sold 239.3 thousand tons of pulp (-4% in relation to both the first quarter of 2015 and the same period of 2014).

In terms of exports, during the first semester of 2015, Altri exported 441 thousand tons of pulp (455 thousand tons in the same period of 2014).

Evolution of pulp sales between 1st H2014 and 1st H2015 by mill (tons)

FINANCIAL ANALYSIS

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

The main indicators and data of Altri Group are the following:

thousand euros	1H 2014	1H 2015	1H15/1H14 Var%
Total Revenues	263,702	312,787	18.6%
Costs of sales	124,445	116,013	-6.8%
External supplies and services	71,520	78,758	10.1%
Payroll expenses	13,921	15,657	12.5%
Other expenses	1,608	2,310	43.7%
Total expenses (a)	211,494	212,739	0.6%
EBITDA (b)	52,208	100,049	91.6%
Margin	19.8%	32.0%	+12.2 pp
Amortisation and depreciation	25,156	26,146	3.9%
EBIT (c) Margin	27,052 10.3%	73,903 23.6%	173.2% +13.4 pp
Financial profit	-13,351	-11,138	-16.6%
Profit before income tax	13,701	62,764	358.1%
Income tax Minority interest	-1,002 0	-12,475 17	ss ss
Profit for the period attributable to parent company's shareholders	12,699	50,272	295.9%

(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 total revenue of the first semester of 2015 amounted to 312.8 million Euro, an increase of 18.6% compared to the same period of 2014.

Total costs, excluding depreciation, interest and taxes, amounted to around 212.7 million Euro, an amount approximately 0.6% higher than in the first half of 2014.

In the first semester of 2015 was reached a record EBITDA of about 100 million Euros, approximately the double of the EBITDA recorded in the first semester of 2014.

The second quarter of 2015 was marked by the EBITDA level (53.5 million Euro), which is an absolute record in quarterly terms.

This performance is explained by the positive evolution of pulp sales price and by the materialization of the production cost reduction strategy that Altri has been implementing.

The operational income (EBIT) of the first semester of 2015 reached about 73.9 million Euro, an increase around 173% comparing to the EBIT recorded in the same period of 2014.

In the first semester, the net profit amounted to 50.3 million Euros, compared with a net profit of 12.7 million Euros reached in the same period of the previous year.

Key balance sheet indicators

thousand euro	31/12/2014	30/06/2015	Var%
Biological assets	105,158.8	104,030.4	-1%
Tangible assets	384,285.5	387,322.1	1%
Goodw ill	265,531.4	265,531.4	0%
Investments available for sale	10,691.2	10,691.2	0%
Others	43,226.9	41,689.2	-4%
Total non current assets	808,893.7	809,264.4	0%
Inventories	54,725.4	69,019.0	26%
Customers	88,868.1	92,236.5	4%
Cash and cash equivalentes	260,855.0	202,820.2	-22%
Others	25,913.7	26,075.3	1%
Total current assets	430,362.3	390,150.9	-9%
Total assets	1,239,256.0	1,199,415.3	-3%
Shareholder's equity and non controlling interests	272,264.0	306,437.7	13%
Bank loans	103,837.5	156,175.0	50%
Other loans	278,276.9	429,471.4	54%
Reimbursable incentives	11,723.8	11,619.7	-1%
Others	48,330.3	47,385.8	-2%
Total non current liabilities	442,168.5	644,651.9	46%
Bank loans	77.2	8,100.0	ss
Other current loans	398,648.0	107,903.8	-73%
Reimbursable subsidies	9,082.8	5,423.3	-40%
Suppliers	61,686.4	63,372.4	3%
Others	55,329.1	63,526.2	15%
Total current liabilities	524,823.5	248,325.8	-53%

The total net investment (CAPEX) made in the first semester of 2015 by the industrial units of the Group, amounted to 27.6 million Euros. Taking into account that the projects of reinforcement of operational efficiency (Celbi) and conversion to specialty pulp (Caima) were concluded during the first semester, the expected intensity of the investment for the second semester is necessarily, significantly lower.

Altri's nominal remunerated debt net of cash and cash equivalents and investments available for sale on June 30, 2015 amounted to 491.3 million Euro, which represents a decrease of 13.2 million Euro comparing to the net debt of 504.4 million Euro recorded in the end of March 2015, and a decrease of 23.4 million Euro compared to 31 December 2014.

The cash flow generated on the second quarter of 2015 amounted to 29.6 million Euro, having Altri paid dividends in the amount of 16.4 million Euro and reduced the net debt by approximately 13.2 million Euro.

During the month of February 2015, Altri reimbursed the bonds "Celbi 2015", amounting to 300 million Euros. Thus, the medium and long term commercial paper programs and bonds issued by Altri Group at the end of the second quarter of 2015 are as follows:

Type	2015	2016	2017	2018	2019	2020	2021	2022	Total
Commercial paper	60,500,000	-	28,000,000	-	-	-	25,000,000	75,000,000	188,500,000
Bonds	-	-	-	145,000,000	73,500,000	50,000,000	35,000,000	-	303,500,000
Float 01/2018 Euribor+0,950%				50,000,000					50,000,000
Float 02/2018 Euribor+0,950%				25,000,000					25,000,000
Float 03/2019 Euribor+3,650%					73,500,000				73,500,000
Float 02/2021 Euribor+2,170%							35,000,000		35,000,000
Float 04/2020 Euribor+3,500%						50,000,000			50,000,000
Float 11/2018 Euribor+3,000%				70,000,000					70,000,000
Total	60,500,000	-	28,000,000	145,000,000	73,500,000	50,000,000	60,000,000	75,000,000	492,000,000

OUTLOOK

The second half of the year shall be characterized by a reinforcement of the productive capacity of the industrial units of Altri, namely Celbi and Caima, which learning curves should be completed during the fourth quarter. Thus, it should be possible to reach a production level of about 1 million tons of eucalyptus pulp during 2015. In addition, the company will continue to implement a number of projects to reinforce operating efficiency.

In financial terms, the company will continue to focus its strategy on debt reduction by generating cash. Given the fact that the investments made in the industrial units Celbi and Caima were incurred during the first half of the year, it is expected that the investment will be substantially reduced during the second half of 2015, which may a positive effect on cash flow generation.

Considering that the majority of the company's revenues are dominated in US dollars, a weaker Euro related to USD has a substantive impact on the results of Altri.

CORPORATE GOVERNANCE

According to legal provisions, the Company is not required to provide information relating to corporate governance, since it is compulsory only in conjunction with the annual Directors' report. The detailed annual corporate governance report is part of the Annual Report and Accounts of 2014 and is available on the website (www.altri.pt).

With regard to these matters it is just to be noted that in April 1, 2015, was communicated to the market the death of the member of the Board of Directors Pedro Macedo Pinto de Mendonça. Since then, the functions of this nonexecutive director are assured by the other members of the Board of Directors.

On June 25, 2015, the group announced to the market the change to its executive management model in order to adapt to the continuing challenges of the market, according to the management philosophy that the company was already following. Thus, Altri's chairman, Paulo Fernandes, assumes functions of Co-CEO and the Vice-president, João Borges de Oliveira, also assume the function of Co-CEO. The remaining members of the Board of Directors maintain its functions, namely, Domingos Matos, Laurentina Martins, Pedro Borges de Oliveira and Ana Rebelo de Mendonça.

LEGAL MATTERS

Own shares

Pursuant to the requirements of article 66 of the Commercial Company Code ("Código das Sociedades Comerciais"), the Directors inform that as of 30 June 2015 Altri and its subsidiaries had no own shares and did not acquire or sell any own shares during the period.

Share held by Altri's corporate boards

Pursuant to the requirements of article 447 of the Commercial Companies Code ("Código das Sociedades Comerciais"), the Directors inform that, as of 30 June 2015, shares held were as follows:

Paulo Jorge dos Santos Fernandes (a)	23,575,168
João Manuel Matos Borges de Oliveira (b)	30,000,000
Domingos José Vieira de Matos (c)	23,900,110
Pedro Miguel Matos Borges de Oliveira	14,359,708
Ana Rebelo de Carvalho Menéres de Mendonça (d)	42,954,552
Laurentina da Silva Martins	0

(a) – Besides 9,113,168 Altri shares held on a personal basis by Paulo Jorge dos Santos Fernandes, there are also attributable 14,262,000 Altri shares held by ACTIUM CAPITAL – SGPS, S.A., of which he is dominant shareholder and director. Thus, in legal terms, a total 23,575,168 shares are attributable to Paulo Jorge dos Santos Fernandes, representing 11.49% of Altri's capital and voting rights.

(b) – The 30,000,000 shares represent Altri, SGPS, S.A. total shares held by CADERNO AZUL – SGPS, S.A., where João Manuel Matos Borges de Oliveira is director and shareholder.

(c) – Besides 13,564,432 Altri, SGPS, S.A. shares held on a personal basis by Domingos José Vieira de Matos, there are also attributable 10,335,678 Altri shares held by LIVREFLUXO – SGPS, S.A., of which he is the dominant shareholder and director. Thus, in legal terms, a total of 23,900,110 shares are attributable to Domingos José Vieira de Matos, representing 11.65% of Altri's capital and voting rights.

(d) – The 42,954,552 shares represent Altri, SGPS, S.A. total shares held by PROMENDO – SGPS, S.A., where Ana Rebelo Carvalho Menéres de Mendonça is director and dominant shareholder.

As of 30 June 2015, the Statutory Auditor, the members of the Statutory Audit Board and of the Shareholders' General Meeting held no shares of the Company.

Participation in the Company's capital

Pursuant to the requirements of articles 16 and 20 of the Securities Market Code ("Código de Valores Mobiliários") and article 448 of the Commercial Companies Code ("Código das Sociedades Comerciais"), 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 30-Jun-2015	voting rights
Through 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 30-Jun-2015	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 30-Jun-2015	voting rights
Directly	5,700,905	2.78%
Through BESTINVER BOLSA, F.I.	4,497,390	2.19%
Total attributable	10,198,295	4.97%

	Nr. of shares held	% Share capital with
Pedro Miguel Matos Borges de Oliveira	on 30-Jun-2015	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 30-Jun-2015	voting rights
Directly	9,313,168	4.54%
Through Actium Capital - SGPS, S.A. (of which he is dominant shareholder and director)	14,262,000	6.95%
Total attributable	23,575,168	11.49%

	Nr. of shares held	% Share capital with
Domingos José Vieira de Matos	on 30-Jun-2015	voting rights
Directly	13,564,432	6.61%
Through Livrefluxo - SGPS, S.A. (of which he is dominant shareholder and director)	10,335,678	5.04%
Total attributable	23,900,110	11.65%

	Nr. of shares held	% Share capital with
João Manuel Matos Borges de Oliveira	on 30-Jun-2015	voting rights
Through CADERNO AZUL - SGPS, S.A. (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 30-Jun-2015	voting rights
Through PROMENDO - SGPS, S.A. (of which she is dominant shareholder and director)	42,954,552	20.94%
Total attributable	42,954,552	20.94%

Altri was not notified of any holdings exceeding 33% of the voting rights.

CLOSING REMARKS

The Board of Directors don't want to conclude without expressing a vote of thanks to the various partners of the group for their trust in our organization. Finally, we would like to express our gratitude to all our employees for their dedication and commitment.

Oporto, July 30th 2015

The Board of Directors

Paulo Jorge dos Santos Fernandes

__________________________________

__________________________________

__________________________________

__________________________________

João Manuel Matos Borges de Oliveira

Domingos José Vieira de Matos

Laurentina da Silva Martins

Pedro Miguel Matos Borges de Oliveira

__________________________________

__________________________________ Ana Rebelo Carvalho Menéres Mendonça

STATEMENT UNDER ARTICLE 246, PARAGRAPH 1, C) OF THE SECURITIES CODE

The signatories individually declare that, to their knowledge, the Condensed Consolidated Financial Statements prepared in accordance with the International Accounting Standard 34 – Interim Financial Reporting, and other accounting documents required by law or regulation, giving a truthful (fairly) and appropriate image, in all material respects, of the assets and liabilities, financial position and the consolidated and individual results of Altri, SGPS, S.A. ("Altri") and of the companies included in the consolidation perimeter and contains a description of the major risks and uncertainties that they face.

DECLARATION OF REPONSIBILITY

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.

Article 447 of the Commercial Companies Code ("Código das Sociedades Comerciais") and article 14 nr.7 of the Portuguese Securities Regulator (CMVM) Regulation nr.05/2008

Disclosure of shares and other securities held by the Board of Directors and by those discharging managerial responsibilities, as well as people with these closely related, in accordance with Article 248. B of the Portuguese Securities Code, and transactions made on them during the semester.

	Shares held at 31-				Shares held at 30-
Members of the Board of Directors	Dec-2014	Aquisitions Disposals		Others	Jun-2015
Paulo Jorge dos Santos Fernandes	14,113,168	-	-	(4,800,000)	9,313,168
Paulo Jorge dos Santos Fernandes(assigned to ACTIUM CAPITAL - SGPS, S.A.)	8,202,000	6,060,000	-	-	14,262,000
João Manuel Matos Borges de Oliveira (assigned to CADERNO AZUL - SGPS, S.A.)	30,000,000	-	-	-	30,000,000
Domingos José Vieira de Matos	13,564,432	-	-	-	13,564,432
Domingos José Vieira de Matos (assigned to LIVREFLUXO - SGPS, S.A.)	9,885,850	449,828	-	-	10,335,678
Pedro Miguel Matos Borges de Oliveira	14,359,708	-	-	-	14,359,708
Ana Rebelo Carvalho Menéres de Mendonça (assigned to PROMENDO - SGPS, S.A.)	42,586,911	367,641	-	-	42,954,552

Paulo Jorge dos Santos Fernandes

Date	Type	Volume	Price (€)	Local	Nr of shares
31 December 2014	-	-	-	-	14,113,168
24 March 2015	Donation	(4,800,000)	3.966000	-	9,313,168
30 June 2015	-	-	-	-	9,313,168

Paulo Jorge dos Santos Fernandes (assigned to ACTIUM CAPITAL - SGPS, S.A.)

Date	Type	Volume	Price (€)	Local	Nr of shares
31 December 2014	-	-	-	-	8,202,000
05 January 2015	Buy	1,000,000	2.411000	NYSE Euronext Lisbon	9,202,000
07 January 2015	Buy	1,675	2.598000	NYSE Euronext Lisbon	9,203,675
07 January 2015	Buy	2	2.598000	NYSE Euronext Lisbon	9,203,677
07 January 2015	Buy	2,000	2.599000	NYSE Euronext Lisbon	9,205,677
07 January 2015	Buy	21,323	2.600000	NYSE Euronext Lisbon	9,227,000
07 January 2015	Buy	772	2.629000	NYSE Euronext Lisbon	9,227,772
07 January 2015	Buy	700	2.629000	NYSE Euronext Lisbon	9,228,472
07 January 2015	Buy	643	2.629000	NYSE Euronext Lisbon	9,229,115
07 January 2015	Buy	452	2.629000	NYSE Euronext Lisbon	9,229,567
07 January 2015	Buy	548	2.629000	NYSE Euronext Lisbon	9,230,115
07 January 2015	Buy	1,000	2.629000	NYSE Euronext Lisbon	9,231,115
07 January 2015	Buy	2,285	2.634000	NYSE Euronext Lisbon	9,233,400
07 January 2015	Buy	642	2.634000	NYSE Euronext Lisbon	9,234,042
07 January 2015	Buy	641	2.639000	NYSE Euronext Lisbon	9,234,683
07 January 2015	Buy	1,000	2.640000	NYSE Euronext Lisbon	9,235,683
07 January 2015	Buy	5,000	2.640000	NYSE Euronext Lisbon	9,240,683
07 January 2015	Buy	641	2.640000	NYSE Euronext Lisbon	9,241,324
07 January 2015	Buy	5,179	2.645000	NYSE Euronext Lisbon	9,246,503
07 January 2015	Buy	641	2.645000	NYSE Euronext Lisbon	9,247,144
07 January 2015	Buy	641	2.645000	NYSE Euronext Lisbon	9,247,785
07 January 2015	Buy	1,000	2.649000	NYSE Euronext Lisbon	9,248,785
07 January 2015	Buy	2,228	2.649000	NYSE Euronext Lisbon	9,251,013
07 January 2015	Buy	1,650	2.650000	NYSE Euronext Lisbon	9,252,663
07 January 2015	Buy	1,500	2.650000	NYSE Euronext Lisbon	9,254,163
07 January 2015	Buy	200	2.650000	NYSE Euronext Lisbon	9,254,363
07 January 2015	Buy	1,111	2.650000	NYSE Euronext Lisbon	9,255,474
07 January 2015	Buy	505	2.650000	NYSE Euronext Lisbon	9,255,979
07 January 2015	Buy	1,806	2.650000	NYSE Euronext Lisbon	9,257,785
07 January 2015	Buy	1,376	2.650000	NYSE Euronext Lisbon	9,259,161
07 January 2015	Buy	2,163	2.656000	NYSE Euronext Lisbon	9,261,324
07 January 2015	Buy	676	2.650000	NYSE Euronext Lisbon	9,262,000
08 January 2015	Buy	1,000,000	2.411000	NYSE Euronext Lisbon	10,262,000
13 May 2015	Buy	1,500,000	3.890000	NYSE Euronext Lisbon	11,762,000
18 May 2015	Buy	1,500,000	3.890000	NYSE Euronext Lisbon	13,262,000
21 May 2015	Buy	1,000,000	4.070000	NYSE Euronext Lisbon	14,262,000
30 June 2015	-	-	-	-	14,262,000

Domingos José Vieira de Matos (assigned to LIVREFLUXO - SGPS, S.A.)
---------------------------------------------------------------------	--

Date	Type	Volume	Price (€)	Local	Nr of shares
31 December 2014	-	-	-	-	9,885,850
08 January 2015	Buy	257,728	2.689000	NYSE Euronext Lisbon	10,143,578
13 January 2015	Buy	117,272	2.785000	NYSE Euronext Lisbon	10,260,850
20 January 2015	Buy	1,782	2.878000	NYSE Euronext Lisbon	10,262,632
20 January 2015	Buy	1,000	2.878000	NYSE Euronext Lisbon	10,263,632
20 January 2015	Buy	3,000	2.878000	NYSE Euronext Lisbon	10,266,632
20 January 2015	Buy	1,269	2.885000	NYSE Euronext Lisbon	10,267,901
20 January 2015	Buy	1,000	2.879000	NYSE Euronext Lisbon	10,268,901
20 January 2015	Buy	2,916	2.879000	NYSE Euronext Lisbon	10,271,817
20 January 2015	Buy	1,000	2.879000	NYSE Euronext Lisbon	10,272,817
20 January 2015	Buy	163	2.879000	NYSE Euronext Lisbon	10,272,980
20 January 2015	Buy	1,000	2.883000	NYSE Euronext Lisbon	10,273,980
20 January 2015	Buy	3,066	2.883000	NYSE Euronext Lisbon	10,277,046
20 January 2015	Buy	1,000	2.883000	NYSE Euronext Lisbon	10,278,046
20 January 2015	Buy	3,619	2.883000	NYSE Euronext Lisbon	10,281,665
20 January 2015	Buy	1,000	2.880000	NYSE Euronext Lisbon	10,282,665
20 January 2015	Buy	8,185	2.880000	NYSE Euronext Lisbon	10,290,850
22 January 2015	Buy	17	2.940000	NYSE Euronext Lisbon	10,290,867
22 January 2015	Buy	260	2.940000	NYSE Euronext Lisbon	10,291,127
22 January 2015	Buy	610	2.940000	NYSE Euronext Lisbon	10,291,737
22 January 2015	Buy	7,000	2.940000	NYSE Euronext Lisbon	10,298,737
22 January 2015	Buy	500	2.940000	NYSE Euronext Lisbon	10,299,237
22 January 2015	Buy	441	2.940000	NYSE Euronext Lisbon	10,299,678
29 January 2015	Buy	23,521	2.992000	NYSE Euronext Lisbon	10,323,199
29 January 2015	Buy	1,479	2.992000	NYSE Euronext Lisbon	10,324,678
29 January 2015	Buy	11,000	2.992000	NYSE Euronext Lisbon	10,335,678
30 June 2015	-	-	-	-	10,335,678

Ana Rebelo Carvalho Menéres de Mendonça (assigned to PROMENDO - SGPS, S.A.)

Date	Type	Volume	Price (€)	Local	Nr of shares
31 December 2014	-	-	-	-	42,586,911
20 April 2015	Buy	82,000	3.970000	NYSE Euronext Lisbon	42,668,911
21 April 2015	Buy	85,641	3.990000	NYSE Euronext Lisbon	42,754,552
27 April 2015	Buy	105,255	4.080000	NYSE Euronext Lisbon	42,859,807
28 April 2015	Buy	94,745	4.060000	NYSE Euronext Lisbon	42,954,552
30 June 2015	-	-	-	-	42,954,552

ALTRI, SGPS, S.A.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 AND 31 DECEMBER 2014

(Translation of financial statements originally issued in Portuguese – Note 20) (Amounts expressed in Euro)
ASSETS	Notes	30.06.2015	31.12.2014
NON CURRENT ASSETS:
Biological assets		104,030,443	105,158,777
Tangible fixed assets		387,322,121	384,285,503
Investment property		113,310	456,936
Goodwill		265,531,404	265,531,404
Intangible assets		103,518	139,448
Investments in associated companies and joint ventures	4.2	9,720,165	9,058,140
Investments available for sale	4.3	10,691,197	10,691,197
Other non current assets		4,196,519	6,031,139
Deferred tax assets	7	27,555,679	27,541,201
Total non current assets		809,264,356	808,893,745
CURRENT ASSETS:
Inventories		69,018,973	54,725,440
Customers		92,236,454	88,868,133
Other debtors		5,474,857	7,776,064
State and other public entities		14,213,257	15,629,003
Other current assets		6,280,063	2,508,606
Derivatives	11	107,158	-
Cash and cash equivalents	6	202,820,185	260,855,007
Total current assets		390,150,947	430,362,253
Total assets		1,199,415,303	1,239,255,998
SHAREHOLDERS' FUNDS AND LIABILITIES		30.06.2015	31.12.2014
SHAREHOLDERS' FUNDS:
Share capital	8	25,641,459	25,641,459
Legal reserve		4,336,498	3,405,143
Other reserves		226,187,307	205,680,587
Consolidated net profit / (loss)		50,272,419	37,381,548
Total shareholders' funds attributable to the parent company's shareholders		306,437,683	272,108,737
Non controlling interests		-	155,240
Total Shareholders' funds		306,437,683	272,263,977
LIABILITIES:
NON CURRENT LIABILITIES:
Bank loans	9	156,175,000	103,837,500
Other loans	9	429,471,380	278,276,931
Reimbursable incentives	9	11,619,653	11,723,809
Other non current creditors		404,350	404,350
Other non current liabilities		26,632,389	27,568,617

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

Deferred tax liabilities 7 15,283,515 15,283,810 Provisions 10 5,065,570 5,073,481

Bank loans 9 8,099,988 77,228 Other loans 9 107,903,839 398,648,024 Reimbursable incentives 9 5,423,322 9,082,810 Suppliers 63,372,396 61,686,358 Other current creditors 21,232,997 14,170,871 State and other public entities 9,958,644 4,351,443 Other current liabilities 32,334,577 34,904,492 Derivatives 11 - 1,902,297

Total non current liabilities 644,651,857 442,168,498

Total current liabilities 248,325,763 524,823,523

Total shareholders' funds and liabilities 1,199,415,303 1,239,255,998

The official chartered of accounts The Board of Directors

CURRENT LIABILITIES:

ALTRI, SGPS, S.A.

CONSOLIDATED STATEMENTS OF PROFIT AND LOSS FOR THE SIX AND THREE MONTHS PERIODS ENDED 30 JUNE 2015 AND 2014

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

		SEMESTER ENDED		QUARTER ENDED
	Notes	30.06.2015	30.06.2014	30.06.2015	30.06.2014
Sales		303,800,396	254,923,847	154,597,681	130,331,997
Services rendered		4,442,247	4,370,377	2,278,623	2,184,232
Other income	14	4,544,472	4,407,320	1,832,445	2,409,490
Cost of sales		(116,013,313)	(124,444,620)	(57,467,848)	(62,023,674)
External supplies and services		(78,758,008)	(71,520,067)	(38,268,005)	(38,926,486)
Payroll expenses		(15,656,858)	(13,921,039)	(7,922,200)	(7,010,323)
Amortisation and depreciation		(26,145,991)	(25,155,810)	(12,990,945)	(12,576,794)
Provisions and other impairment losses	10	307,041	(52,903)	18,696	(30,670)
Other expenses	15	(2,617,365)	(1,555,154)	(1,612,781)	(814,289)
Gains and losses in associated companies and joint ventures	4.2	705,366	1,252,965	545,409	944,654
Financial expenses	12	(16,809,382)	(17,799,483)	(7,538,594)	(10,533,345)
Financial income	12	4,965,518	3,195,938	1,601,731	1,664,431
Profit before income tax		62,764,123	13,701,371	35,074,212	5,619,223
Income tax		(12,474,916)	(1,001,519)	(6,960,832)	(586,535)
Consolidated net profit		50,289,207	12,699,852	28,113,380	5,032,688
Attributable to:
Parent company's shareholders	13	50,272,419	12,699,416	28,113,380	5,033,053
Non controlling interests		16,788	436	-	(365)
		50,289,207	12,699,852	28,113,380	5,032,688
Earnings per share:
Basic	13	0.25	0.06	0.14	0.02
Diluted	13	0.25	0.06	0.14	0.02

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 SIX AND THREE MONTHS PERIODS ENDED 30 JUNE 2015 AND 2014

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

(Amounts expressed in Euro)

	SEMESTER ENDED		QUARTER ENDED
	30.06.2015	30.06.2014	30.06.2015	30.06.2014
Net consolidated profit / (loss) for the period	50,289,207	12,699,852	28,125,823	5,032,688
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	320,844	1,166,706	110,620	135,179
Others	(25,811)	-	(148,676)	186,122
	295,033	1,166,706	(38,056)	321,301
Other comprehensive income	295,033	1,166,706	(38,056)	321,301
Total comprehensive income for the period	50,584,240	13,866,558	28,087,767	5,353,989
Attributable to:
Shareholders' of the parent company	50,567,452	13,866,122	28,077,403	5,354,354
Non controlling interests	16,788	436	10,364	(365)

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 SIX MONTHS PERIODS ENDED 30 JUNE 2015 AND 2014

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

Non Total Others controlling Notes Share capital Legal reserve reserves Net profit Total interests funds Balance as of 1 January 2014 25,641,459 2,862,981 157,811,081 55,347,961 241,663,482 146,308 Appropriation of the consolidated net profit of 2013 - 542,162 54,805,799 (55,347,961) - - - Dividends - - (8,615,530) - (8,615,530) - Others - - (9,943) - (9,943) - Total comprehensive income for the period - - 1,166,706 12,699,416 13,866,122 436 Balance as of 30 June 2014 25,641,459 3,405,143 205,158,113 12,699,416 246,904,131 146,744 Balance as of 1 January 2015 25,641,459 3,405,143 205,680,587 37,381,548 272,108,737 155,240 Appropriation of the consolidated net profit of 2014 18 - 931,355 36,450,193 (37,381,548) - - - Dividends 18 - - (16,410,534) - (16,410,534) - Others 5 - - 172,028 - 172,028 (172,028) -			Attributable to the parent company's shareholders
					shareholder's
					241,809,790
					(8,615,530)
					(9,943)
					13,866,558
					247,050,875
					272,263,977
					(16,410,534)
Total comprehensive income for the period - - 295,033 50,272,419 50,567,452 16,788					50,584,240
Balance as of 30 June 2015 8 25,641,459 4,336,498 226,187,307 50,272,419 306,437,683 -					306,437,683

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

ALTRI , SGPS, S.A.

CONDENSED CONSOLIDATED CASH-FLOW STATEMENTS FOR THE SIX AND THREE MONTHS PERIODS ENDED 30 JUNE 2015 AND 2014

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

(Amounts expressed in Euro)

		SEMESTER ENDED			QUARTER ENDED
	Notes	30.06.2015	30.06.2014	30.06.2015	30.06.2014
Operating activities:
Cash flow from operating activities (1)		74,338,592	48,546,940	45,170,214	34,845,847
Investment activities:
Collections relating to:
Investments	6	-	1,125,000	-	-
Tangible assets		1,026,735	1,200	496,669	-
Intangible assets		-	30,192	-	30,192
Interest and similar income		2,670,173	2,062,555	1,795,150	1,295,609
Investment subsidies		1,352,660	8,454,834	1,352,014	143,220
Payments relating to:
Investments	5	(149,687)	-	(149,687)	-
Investment subsidies		(3,763,645)	(747,939)	(170,963)	(747,939)
Tangible assets		(23,621,214)	(19,231,802)	(13,839,428)	(13,491,956)
Cash flow from investment activities (2)		(22,484,978)	(8,305,960)	(10,516,245)	(12,770,874)
Financing activities:
Collections relating to:
Loans obtained		285,641,805	415,915,011	1,181,518	153,628,545
Payments relating to:
Loans obtained		(366,482,135)	(325,106,564)	(49,854,012)	(131,836,071)
Interest and similar costs		(12,885,332)	(17,437,150)	(6,096,845)	(4,634,465)
Distribution of dividends	18	(16,410,534)	(8,615,530)	(16,410,534)	(8,615,530)
Cash flow from financing activities (3)		(110,136,196)	64,755,767	(71,179,873)	8,542,479
Cash and cash equivalents at the beginning of the period		260,777,779	232,371,783	239,021,101	306,751,077
Variation of cash and cash equivalents: (1)+(2)+(3)		(58,282,582)	104,996,747	(36,525,904)	30,617,453
Cash and cash equivalents at the end of the period	6	202,495,197	337,368,530	202,495,197	337,368,530

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

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 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 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 ACCOUTING POLICIES AND BASIS FOR PRESENTATION

The consolidated financial statements as of 30 June 2015 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 2014.

3. CHANGE 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.

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 June 2015 and 31 December 2014, are as follows:

Company Head Office Percentage Held		Main activity
Mother-Company:		2015	2014
Altri, SGPS, S.A.	OPorto			Investment management
Subsidiaries:
Altri Abastecimento de Madeira, S.A.	Figueira da Foz	100%	100%	Commercialization of w ood
Altri Florestal, S.A.	Figueira da Foz	100%	100%	Sylvan exploration
Altri Sales, S.A.	Nyon, Suiça	100%	100%	Group management support services
Altri, Participaciones Y Trading, S.L.	Madrid, Espanha	100%	100%	Commercialization of pulp
Caima Energia – Empresa de Gestão e Exploração de Energia, S.A.	Constância	100%	100%	Production of thermal and electrical energy
Caima Indústria de Celulose, S.A.	Constância	100%	100%	Production and commercialization of pulp
Captaraíz Unipessoal, Lda.	Figueira da Foz	100%	100%	Property buying and selling
Celtejo – Empresa de Celulose do Tejo, S.A. (a)	Vila Velha de Ródão	100%	99.83%	Production and Commercialization of pulp
Celulose Beira Industrial (Celbi), S.A.	Figueira da Foz	100%	100%	Production and Commercialization of pulp
Inflora – Sociedade de Investimentos Florestais, S.A.	Figueira da Foz	100%	100%	Sylvan exploration
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) In the first semester of 2015, Altri acquired the remaining shares of Celtejo – Empresa de Celulose do Tejo, S.A. (Nota 5).

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 June 2015 and 31 December 2014 are as follows:

Company	Percentage held		Main activity
	2015	2014
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)

The book value, net assets, equity and net profit for the period ended on 30 June 2015 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.	573,240	6,107,057	2,220,085	370,343
Joint ventures:
EDP – Produção Bioeléctrica, S.A. (b)		9,146,925 143,254,645 23,441,505 1,186,254
	9,720,165

(a) – Includes loans granted.

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

4.3 INVESTMENTS AVAILABLE FOR SALE

As of 30 June 2015 and 31 December 2014 the investments available for sale are as follows:

Company	Book value
	2015	2014
Rigor Capital - Produção de Energia. Lda.	10,527,397	10,527,397
Other investments	163,800	163,800
	10,691,197	10,691,197

It is the understanding of the Altri Group that the book value of the caption "Investments available for sale", which includes mainly financial investments under 20% in companies where Altri Group has no significant influence on its management and are stated at acquisition cost, reduced by impairment losses, does not differ significantly from their fair value.

5. CHANGE OCCURED IN THE CONSOLIDATION PERIMETER

During the six month period ended June 30, 2015, Altri acquired shares representing 0.17% of the share capital of Celtejo - Empresa de Celulose do Tejo, S.A., becoming the holder of 100% of the share capital and voting rights (Note 4.1).

6. CASH AND CASH EQUIVALENTS

As of 30 June 2015 and 2014, the caption "Cash and cash equivalents" can be detailed as follows:

	30.06.2015	30.06.2014
Cash Bank deposits	19,623 202,800,562	14,957 338,242,451
	202,820,185	338,257,408
Bank overdrafts (Note 9)	(324,988)	(888,878)
Cash and cash equivalents	202,495,197	337,368,530

During the six months period ended June 30, 2015 there were no receipts or payments relating to financial investments, besides those related with the acquisition of shares of Celtejo - Empresa de Celulose do Tejo S.A. (Note 5).

During the six months period ended 30 June 2014, receipts from investments were as follows:

	Transaction amount	Amount received
EDP – Produção Bioelétrica, S.A. (a)	1,125,000 ---------------	1,125,000 ----------------
	1,125,000 =========	1,125,000 =========
(a) – Repayment of loans granted.

7. 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), 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 2011 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 June 2015.

The movements occurred in deferred tax assets and liabilities in the six months periods ended in 30 June 2015 and 2014 were as follows:

	2015
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1.1.2015	27,541,201	15,283,810
Effects on income statement:
Harmonization of depreciation rates	(134,969)	-
Other effects	210,480	(295)
Total effect on income statement	75,511	(295)
Effect on shareholders' funds:
Fair values of derivatives	(61,033)	-
Closing balance as of 30.06.2015	27,555,679	15,283,515
	2014
	Deferred tax assets	Deferred tax liabilities
Opening balance as of 1.1.2014	31,165,814	17,896,214
Effects on income statement:
Harmonization of depreciation rates	669,034	-
Other effects	(312,653)	(29,523)
Total effect on income statement	356,381	(29,523)
Effect on shareholders' funds:
Fair values of derivatives	(500,180)	(121,398)
Closing balance as of 30.06.2014	31,022,015	17,745,293

8. SHARE CAPITAL

As of 30 June 2015 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.

9. BANK LOANS, OTHER LOANS AND REIMBURSABLE INCENTIVES

As of 30 June 2015 and 31 December 2014, the captions "Bank loans", "Other loans" and "Reimbursable incentives" can be detailed as follows:

	30-06-2015
		Nominal Value			Book Value
	Current	Non current	Total	Current	Non current	Total
Bank loans	8,000,000	157,000,000	165,000,000	7,775,000	156,175,000	163,950,000
Bank overdrafts (Note 6)	324,988	-	324,988	324,988	-	324,988
Bank loans	8,324,988	157,000,000	165,324,988	8,099,988	156,175,000	164,274,988
Commercial paper	60,500,000	128,000,000	188,500,000	60,060,298	128,000,000	188,060,298
Bonds	-	303,500,000	303,500,000	-	301,471,380	301,471,380
Other loans	47,843,541	-	47,843,541	47,843,541	-	47,843,541
Other loans	108,343,541	431,500,000	539,843,541	107,903,839	429,471,380	537,375,219
Reimbursable incentives	5,423,322	11,619,653	17,042,975	5,423,322	11,619,653	17,042,975
	122,091,851	600,119,653	722,211,504	121,427,149	597,266,033	718,693,182

	31-12-2014
		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	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 incentives	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

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

10. ACCUMULATED PROVISIONS AND IMPAIRMENT LOSSES

The movements occurred in provisions and impairment losses for the six months periods ended at 30 June 2015 and 2014 can be detailed as follows:

		30.06.2015
		Impairment losses in current
	Provisions	assets	Total
Opening balance	5,073,481	7,838,675	12,912,156
Increases	-	-	-
Utilizations	(7,911)	307,041	299,130
Closing balance	5,065,570	8,145,716	13,211,285
		30.06.2014
		Impairment losses in current
	Provisions	assets	Total
Opening balance	5,123,914	9,505,979	14,629,893
Increases	52,903	-	52,903
Utilizations	-	-	-

The amount recorded under the caption "Provisions", at 30 June 2015 and 2014, is the best estimate of the Board of Directors in order to face all the losses that may be supported due to the general risks arising from the activity of Altri's Group.

11. DERIVATIVE FINANCIAL INSTRUMENTS

As of 30 June 2015 and 2014 the companies of Altri's Group had contracts concerning financial derivative instruments to hedge of variations in pulp price (June 30, 2014) and interest rates being these instruments registered according to their fair value.

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

As of 30 June 2015 and 2014 the detail of the financial derivative instruments is as follows:

	Pulp price hedging derivatives	Interest rates derivatives	Total
Opening balance as of 31.12.2014	-	(1,902,297)	(1,902,297)
Derivatives fair value variation/cessation
Effects on shareholders' funds	-	381,876	381,876
Effects on the profit and loss statement	-	1,627,579	1,627,579
Closing balance as of 30.06.2015	-	107,158	107,158
	Pulp price hedging derivatives	Interest rates derivatives	Total
Opening balance as of 31.12.2013	720,362	(6,004,727)	(5,284,365)
Derivatives fair value variation/cessation
Effects on shareholders' funds	123,708	1,422,340	1,546,048
Effects on the profit and loss statement	-	581,333	581,333
Closing balance as of 30.06.2014	844,070	(4,001,054)	(3,156,984)

12. FINANCIAL RESULTS

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

The financial results for the six months periods ended at 30 June 2015 and 2014 are detailed as follows:

	30.06.2015	30.06.2014
Financial expenses:
Interests	8,106,162	9,975,325
Other financial expenses	8,703,220	7,824,158
	16,809,382	17,799,483
Financial income:
Interests	1,458,573	2,565,931
Other financial income	3,506,945	630,007
	4,965,518	3,195,938

The caption "Other financial expenses" includes expenses incurred with the setup of the loans which are being recognized as costs through the life period of the respective loans (Note 9), and losses regarding interest ratel derivative instruments (Note 11).

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

13. EARNINGS PER SHARE

Earnings per share in the six months periods ended as of 30 June 2015 and 2014 were calculated considering the following amounts:

	30.06.2015	30.06.2014
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	50,272,419	12,699,416
Earnings per share Basic Diluted	0.25 0.25	0.06 0.06

14. OTHER INCOME

As of 30 June 2015 and 2014 the caption of the statement of profit and loss "Other Income" is detailed as follows:

	30.06.2015	30.06.2014
Investment and exploration subsidies	2,531,681	2,490,490
Gains in commodities derivatives contracts (Note 11)	-	301,458
Other income	2,012,791	1,615,372
	4,544,472	4,407,320

15. OTHER EXPENSES

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

As of 30 June 2015 and 2014 the caption of the statement of profit and loss "Other expenses" is detailed as follows:

	30-06-2015	30-06-2014
Direct taxes and charges	729,551	838,109
Other costs	1,887,815	717,045
	2,617,365	1,555,154

16. SEGMENTAL INFORMATION

On 16 April 2008, the Board of Directors of Altri, S.G.P.S., S.A. approved a simple demerger project of this company which implied 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 allowed Altri Group to focus its activity on its core business, production and commercialization of bleached paper pulp form eucalyptus. Therefore, the Board of Directors believes that there is only one business segment and the management information is reported and analyzed on this basis.

17. RELATED PARTIES

Altri Group companies have transactions between them made at market prices, which 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, 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 six months periods ended at 30 June 2015 and 2014, there were no transactions with the Directors of the Group and there were no loans granted.

As of 30 June 2015 and 2014 the balances and transactions with related parties are as follows:

		Purchases and services received		Sales and services	Interest income
Transactions	30.06.2015	30.06.2014	30.06.2015	30.06.2014	30.06.2015	30.06.2014
Associated companies and joint ventures (a)	1,096,201	1,590,445	7,351,461	7,751,841	122,215	155,141
Other related parties (b)	3,167,919	3,245,696	-	-	-	-
	4,264,120	4,836,141	7,351,461	7,751,841	122,215	155,141
		Accounts payable		Accounts receivable	Granted Loans
Balances	30.06.2015	30.06.2014	30.06.2015	30.06.2014	30.06.2015	30.06.2014
Associated companies and joint ventures (a)	333,369	323,891	2,700,559	2,480,517	11,482,905	12,682,905
Other related parties (b)	39,291	31,459	-	-	-	-
	372,660	355,350	2,700,559	2,480,517	11,482,905	12,682,905

(a) All entities consolidated by the equity method as of 30 June 2015 and 2014 (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.

REPORT AND ACCOUNTS 1H2015 IV. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Translation of notes originally issued in Portuguese – Note 20)

Besides the companies included in consolidation (Note 4), entities considered as related parties as of 30 June 2015 can be detailed as follow:

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. 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. RamadaStorax, 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

18. APPLICATION OF THE NET PROFIT

The Board of Directors proposed, in its anual report, approved at the Shareholder's General Meeting held on 14 April 2015, that the individual net profit of Altri SGPS, S.A. amounting to 18,627,109.20 Euros would be allocated as follows:

Legal reserve Others reserve Distribution of dividends	931,355.46 1,285,219.98 16,410,533.76
	--------------------- 18,627,109.20 ============

19. FINANCIAL STATEMENTS APPROVAL

The financial statements were approved by the Board of Directors and authorized for issuance in 30 July 2015.

20. EXPLANATION ADDED FOR TRANSLATION

These condensed 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

João Manuel Matos Borges de Oliveira

Domingos José Vieira de Matos

Laurentina da Silva Martins

Pedro Miguel Matos Borges de Oliveira

Ana Rebelo de Carvalho Menéres de Mendonça

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